BEN TRE VIETNAM THE AMERICANS MAY BE COMING TO VIETNAM BUT THE ASIANS AND THE EUROPEANS ARE ALREADY HERE WITH THE LIFTING LAST WEEK OF THE US ECONOMIC EMBARGO AGAINST VIETNAM US COMPANIES SUCH AS PEPSICO INC AND AMERICAN EXPRESS CO ARE SCRAMBLING TO GET BACK INTO THIS MARKET OF 72 MILLION PEOPLE AFTER 18 YEARS OF BEING ALMOST COMPLETELY SHUT OUT BUT WHILE THE AMERICANS WERE AWAY ASIANS AUSTRALIANS AND EUROPEANS WERE MAKING HAY SETTING UP INVESTMENTS TOTALING 75 BILLION SINCE 1987 AND WHILE INVESTMENT OPPORTUNITIES STILL ABOUND IN AVIATION INFRASTRUCTURE OIL EXPLORATION AND OTHER SECTORS MINISTRY OF COMMERCE OFFICIAL HOANG NGOC CU SAYS THAT IN SOME FIELDS INCLUDING MOTORVEHICLE MANUFACTURING IT'S TOO LATE FOR THE AMERICANS TO COME IN ON THE ROAD TO BEN TRE A PROVINCIAL CAPITAL ABOUT 54 MILES SOUTH OF HO CHI MINH CITY ASIAN BRAND NAMES LEAP OUT AT THE TRAVELER TIGER THE SINGAPOREAN BEER IS PROMINENTLY FOR SALE ALL OVER HONDA REPAIR SHOPS ARE EVERYWHERE NOT BECAUSE THE JAPANESE BRAND IS IN SUCH FREQUENT NEED OF SERVICING BUT BECAUSE THE MOTORCYCLES ARE SO POPULAR THAT HONDA HAS EFFECTIVELY BECOME THE VIETNAMESE WORD FOR MOTORCYCLE LAST YEAR BEN TRE PROVINCE A RICE SUGAR AND COCONUT GROWING ZONE IN THE MEKONG RIVER DELTA RECEIVED ITS FIRST FOREIGN INVESTMENTS PROVINCIAL OFFICIALS SAY A BELGIAN COMPANY INVESTED 480000 IN A FACILITY TO PROCESS COCONUT HUSKS WHILE A SOUTH KOREAN COMPANY COMMITTED TO A 7 MILLION INVESTMENT IN A 2470ACRE BANANA PLANTATION THE RUSH OF ASIAN AND EUROPEAN INVESTORS TOOK SOME OF THE STING OUT OF THE US EMBARGO AS A RESULT THE VIETNAMESE REACTION TO THE EMBARGO'S LIFTING WAS SUBDUED BOTH IN THE MEDIA AND ON THE STREET MANY VIETNAMESE WERE HAPPY TO SEE THE EMBARGO GO BUT DIDN'T THINK ITS LIFTING WOULD HAVE MUCH REAL ECONOMIC IMPACT VIETNAM THOUGHT THAT IF THE EMBARGO WAS NOT LIFTED OTHER COUNTRIES WOULD NOT COME TO VIETNAM TO INVEST BUT MANY COUNTRIES HAVE COME SAYS TRAN CONG MAN VICE SECRETARY GENERAL OF THE VIETNAM JOURNALISTS' ASSOCIATION FOR FOREIGN INVESTORS VIETNAM IS ONE OF THE WORLD'S LAST RELATIVELY UNTAPPED OPPORTUNITIES WITH A LARGE POPULATION AND PLENTIFUL NATURAL RESOURCES INCLUDING OIL THOUGH RUN BY A COMMUNIST PARTY THAT BROOKS NO OPPOSITION THE COUNTRY IS COMMITTED TO BUILDING A MARKET ECONOMY AND HAS REDUCED THE NUMBER OF STATE ENTERPRISES TO 7000 FROM 12000 WHILE ANNUAL PERCAPITA PURCHASING POWER IS LOW ONLY ABOUT 350 THE ECONOMY IS GROWING AT 7PLUS A YEAR AND INFLATION IS UNDER CONTROL THE VIETNAMESE PEOPLE SEEM HIGHLY MOTIVATED AND THEY OFFER THE FOREIGN INVESTOR A LOW MINIMUM WAGE 35 A MONTH AND A HIGH LITERACY RATE 88 THE VIETNAMESE GOVERNMENT IS EAGER FOR FOREIGN INVESTMENT IT HOPES TO LURE AN ADDITIONAL 20 BILLION OF IT BY THE END OF THE DECADE AND OFFERS TERMS THAT ON PAPER AT LEAST ARE LIBERAL IN PRACTICE RED TAPE AND CORRUPTION PLAGUE WOULDBE FOREIGN INVESTORS BUT THE GOVERNMENT IS TRYING TO FIX THESE PROBLEMS OUT OF THE 75 BILLION COMMITTED BY FOREIGN INVESTORS ABOUT 2 BILLION HAS BEEN SPENT SO FAR GOVERNMENT OFFICIALS SAY THEY ARE REASONABLY SATISFIED WITH THAT RATIO NGUYEN MAI VICE CHAIRMAN OF THE STATE COMMITTEE FOR COOPERATION AND INVESTMENT OR SCCI PREDICTS THAT VIETNAM WILL RECEIVE 4 BILLION IN FOREIGNINVESTMENT COMMITMENTS THIS YEAR AND 15 BILLION OF ACTUAL INVESTMENT MOST OF THE MONEY WILL COME FROM ASIAN AND EUROPEAN INVESTORS WE DON'T SEE 1994 AS A YEAR WHEN WE'LL RECEIVE A RUSH OF NEW FLOWS OF INVESTMENT FROM THE US MR MAI SAYS IT WILL BE A YEAR OF MORE AND MORE AMERICANS COMING TO FURTHER THEIR STUDIES OF VIETNAM'S INVESTMENT POTENTIAL THE FOREIGNERS WITH THE BIGGEST INVESTMENT COMMITMENTS IN VIETNAM AS OF LAST WEEK WERE COMPANIES FROM TAIWAN 154 BILLION AND HONG KONG 125 BILLION TAIWAN'S GOVERNMENT FEARFUL OF BECOMING TOO ECONOMICALLY DEPENDENT ON CHINA HAS ENCOURAGED INVESTMENTS IN VIETNAM AND MANY BIG TAIWANESE COMPANIES HAVE JUMPED AT THE OPPORTUNITY ONE THE CLOSELY HELD CHING FONG GROUP IS INVESTING 228 MILLION IN A CEMENT FACTORY IN HAIPHONG 55 MILLION IN MOTORCYCLEMANUFACTURING FACILITIES AND 15 MILLION IN AN INVESTMENT AND TRUST COMPANY CHING FONG IS SAID TO BE THE LARGEST SINGLE FOREIGN INVESTOR IN VIETNAM JUST LAST WEEK TWO TAIWANESE FIRMS JOINED FRANCE'S TOTAL SA AND VIETNAM'S STATEOWNED PETROVIETNAM IN AGREEING TO CONDUCT A FEASIBILITY STUDY FOR VIETNAM'S FIRST OIL REFINERY THE TWO ARE STATEOWNED CHINESE PETROLEUM CORP AND CHINA INVESTMENT & DEVELOPMENT CO WHOSE LARGEST SINGLE OWNER WITH A 30 STAKE IS A HOLDING COMPANY OF TAIWAN'S RULING KUOMINTANG JAPANESE AND SOUTH KOREAN INVESTORS ARE ALSO MOVING INTO VIETNAM FAST ESPECIALLY IN ELECTRONICS AND MOTORVEHICLE ASSEMBLY MR MAI SAYS THE SCCI HAS RECEIVED 17 PROPOSED INVESTMENTS FROM JAPAN'S MITSUI & CO ALONE AND EIGHT FROM SOUTH KOREA'S DAEWOO GROUP SOME VIETNAMESE OFFICIALS EXPECT THE LIFTING OF THE US EMBARGO TO TRIGGER A FLOOD OF JAPANESE INTEREST THE OFFICIALS THINK JAPANESE COMPANIES HAVE BEEN HOLDING BACK TRYING TO AVOID ANGERING WASHINGTON BY SEEMING TO TAKE ADVANTAGE OF THE EMBARGO TO SNATCH OPPORTUNITIES FROM AMERICAN RIVALS WITH AMERICANS NOW FREE TO COMPETE MAYBE SOONER OR LATER THE JAPANESE WILL OVERTAKE THE TAIWANESE AND BECOME THE LARGEST FOREIGN INVESTORS MR MAI SAYS 9402100135 940210 LITTLE GUY SUES CORPORATE GIANT OVER A MICKEY MOUSE SWEATSHIRT BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL WALT DISNEY HAS ALWAYS BEEN VERY PROTECTIVE OF MICKEY MOUSE FOR YEARS THE ENTERTAINMENT COMPANY HAS SUED OR THREATENED TO SUE EVEN THE SMALLEST COPYRIGHT VIOLATORS INCLUDING THREE FLORIDA DAYCARE CENTERS THAT PAINTED DISNEY CHARACTERS ON THEIR WALLS WE PURSUE ALL KNOWN INFRINGEMENTS OF OUR RIGHTS SAYS JOHN J TORMEY III A WALT DISNEY CO ATTORNEY IN NEW YORK NOW NICHOLAS DEMOU OWNER OF THE LOCALLY FAMOUS MODERN DINER IN PAWTUCKET RI IS GIVING DISNEY A TASTE OF ITS OWN MEDICINE HE HAS SUED DISNEY OVER A MICKEY MOUSE SWEATSHIRT THAT SHOWS HIS DINER IN THE BACKGROUND LAST SUMMER MR DEMOU SAYS HE SAW A CUSTOMER WEARING ONE OF THE SHIRTS HIS FIRST REACTION HE SAYS WAS DISBELIEF I'M A LITTLE TINY GUY IN THE SMALLEST STATE WITH A 50SEAT RESTAURANT HE SAYS IF IT WAS ME AND I WAS SELLING THOSE SHIRTS YOU KNOW THEY WOULD HAVE SHUT ME DOWN DISNEY DECLINES TO COMMENT EAST SIDE MODERN DINER INC'S SUIT AGAINST DISNEY IN A RHODE ISLAND STATE COURT SEEKS AN ACCOUNTING OF ALL ILLGOTTEN GAINS AND UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES THE SUIT ALSO NAMES THE SHIRT'S MANUFACTURER AND A DISCOUNT RETAILER WHERE MR DEMOU BOUGHT ONE OF THE SHIRTS FOR 1995 THE MODERN ISN'T JUST ANY DINER AN ARTDECO STERLING STREAMLINERBRAND DINER BUILT AROUND 1940 IT WAS THE FIRST DINER ACCEPTED BY THE NATIONAL REGISTER OF HISTORIC PLACES MR DEMOU SAYS AFTER HIS FAMILY BOUGHT THE ABANDONED DINER EIGHT YEARS AGO AND MOVED IT TO ITS CURRENT ROADSIDE LOCATION THEY WORKED WITH PRESERVATIONISTS ON THE RESTORATION THE MODERN HAS BEEN FEATURED IN A NUMBER OF BOOKS ON DINERS AND ROAD FOOD MICHAEL FELDHUHN THE MODERN'S LAWYER SPECULATES THAT THE SWEATSHIRT PICTURE WHICH CLEARLY DISPLAYS THE MODERN DINER SIGN ATOP THE RESTAURANT MIGHT HAVE COME FROM ONE OF THEM DURING THE WEEK THE MODERN SERVES CLASSIC DINER FOOD MEATLOAF BEEF STEW CHICKEN CROQUETTES WEEKENDS MR DEMOU A GRADUATE OF THE NEARBY JOHNSON & WALES CULINARY SCHOOL SAYS HE ATTRACTS THE ARTSY CROWD WITH DELICACIES LIKE BAKED EGGS FLORENTINE AND PEAR AND ALMOND PANCAKES WITH HOT FIGS MR DEMOU SAYS HE'S SENSITIVE TO THE NEED TO PROTECT TRADEMARKS AFTER ALL HE SELLS HIS OWN MODERN DINER TSHIRTS WITHOUT MICKEY 9402100134 940210 METALL MINING WITHDRAWS BID TORONTO METALL MINING CORP SAID IT WITHDREW ITS BID FOR ALL THE COMMON SHARES OF INTERNATIONAL MUSTO EXPLORATIONS LTD MUSTO A VANCOUVER BRITISH COLUMBIA MINERAL EXPLORATION COMPANY THAT OWNS A LARGE COPPERANDGOLD DEPOSIT IN ARGENTINA SAID LAST WEEK THAT IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL A 50 INTEREST IN THE PROJECT TO MIM HOLDINGS LTD OF AUSTRALIA METALL A TORONTO MINING CONCERN SAID ITS BID WAS SUBJECT TO MUSTO NOT SELLING A SIGNIFICANT STAKE IN THE PROJECT 9402100133 940210 QVC NETWORK'S ATTEMPT TO GAIN GROUND IN PARAMOUNT BIDDING RAISES QUESTIONS BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC BEHIND IN THE BIDDING FOR PARAMOUNT COMMUNICATIONS INC IS NAVIGATING A LEGAL AND REGULATORY MINEFIELD AS IT ATTEMPTS TO REGAIN MOMENTUM IN THE TAKEOVER CONTEST WITH A MAJORITY OF SHORTTERM STOCK TRADERS FAVORING A RIVAL BID FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT BY VIACOM INC ONE IMMEDIATE GOAL FOR QVC CHAIRMAN BARRY DILLER IS TO SEE TO IT THAT VIACOM A CABLE TELEVISION PROGRAMMER DOESN'T GAIN THE 501 OF PARAMOUNT STOCK NEEDED TO WIN WHEN BOTH COMPANIES' TAKEOVER BIDS EXPIRE MONDAY BUT MR DILLER IS LABORING UNDER A HANDICAP BECAUSE THE AUCTION GROUND RULES AGREED TO BY BOTH VIACOM AND HOME SHOPPING COMPANY QVC BAR BOTH BIDDERS FROM CHANGING WHAT WERE SUPPOSEDLY THEIR LAST BEST OFFERS WHICH THEY SUBMITTED FEB 1 BOTH BIDS ARE VALUED AT MORE THAN 10 BILLION EACH SO INSTEAD MR DILLER IS PURSUING HIS GOAL BY HINTING DURING MEETINGS WITH ANALYSTS AND TRADERS OF POSSIBLE FUTURE EFFORTS TO SHORE UP HIS BID WHICH CONSISTS OF BOTH CASH AND QVC STOCK QVC'S HINTS HAVE ALREADY RAISED QUESTIONS FROM THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY SEC STAFF MEMBERS CALLED BOTH QVC AND SOME ANALYSTS WHO ATTENDED THE MEETINGS TO ASK FOR INFORMATION ON WHAT WAS SAID ACCORDING TO STOCK TRADERS THE SEC DECLINED TO COMMENT AT THE MEETINGS TUESDAY MR DILLER AND EXECUTIVES OF COMCAST CORP A QVC INVESTOR BROACHED THE POSSIBILITY THAT BELLSOUTH CORP WHICH HAS ALREADY AGREED TO INVEST 2 BILLION IN QVC MIGHT JOIN WITH OTHER QVC BACKERS IN PROMISING TO BUY QVC STOCK AT SOME POINT IN THE FUTURE DEPENDING ON THE SPECIFICS SUCH AN ANNOUNCEMENT COULD STRENGTHEN THE QVC BID BY GIVING PARAMOUNT STOCKHOLDERS SOME ASSURANCE THAT QVC STOCK WOULDN'T FALL SHARPLY AFTER ANY QVC ACQUISITION OF PARAMOUNT PETER SIRIS AN ANALYST FROM UBS SECURITIES INC WHO ATTENDED ONE OF THE TUESDAY MEETINGS ISSUED A REPORT TO CLIENTS YESTERDAY THAT SAID WE BELIEVE THAT QVC AND ITS PARTNERS INTEND TO STRENGTHEN ITS PARAMOUNT BID BY DEVISING A MECHANISM THAT WOULD LET THE PARTNERS SUPPORT THE PRICE OF QVC'S STOCK SOME ANALYSTS SAID THE MEETING RAISED REGULATORY ISSUES ABOUT STATEMENTS BY MR DILLER THAT SUCH A PLAN IS UNDER CONSIDERATION HOW THOSE STATEMENTS WERE DISSEMINATED AND WHETHER THEY CONSTITUTED A CHANGE IN THE QVC OFFER THAT WOULD HAVE TO BE DISCLOSED IN PUBLIC FILINGS ONE PERSON CLOSE TO QVC ACKNOWLEDGED RECEIVING A CALL FROM THE SEC BUT CHARACTERIZED IT AS NO BIG DEAL ONE ANALYST ALSO ACKNOWLEDGED RECEIVING SUCH A CALL BUT DECLINED TO COMMENT MR DILLER SAID WE WERE OBVIOUSLY VERY CAREFUL ABOUT WHAT WE DID SAY WE RESPONDED TO A GOOD MANY QUESTIONS AT THE MEETINGS WITH THAT CARE IN MIND SOME LAWYERS FOLLOWING THE PARAMOUNT BATTLE BELIEVE THAT ANY EVENTUAL ANNOUNCEMENT EVEN IF MADE BY BELLSOUTH OR OTHERS INSTEAD OF BY QVC MIGHT BY ITSELF CONSTITUTE A CHANGE IN THE QVC BID SINCE IT WOULD AFFECT THE PERCEIVED VALUE OF THE QVC STOCK IN QVC'S OFFER IF SUCH A MOVE CONTRIBUTED TO VIACOM NOT RECEIVING 501 OF PARAMOUNT STOCK VIACOM COULD WELL BRING A LAWSUIT CHARGING THAT QVC BROKE THE BIDDING RULES DELAYING THE ALREADY PROTRACTED BATTLE BUT PARAMOUNT ADVISERS HAVE HINTED THEY MAY ACT TO BRING THE CURTAIN DOWN QUICKLY IF VIACOM FALLS SHORT OF 501 BUT APPEARS TO BE THE CLEAR WINNER ANYWAY ANOTHER LEGAL QUESTION IS WHETHER BELLSOUTH COULD UNDER SECURITIES UNDERWRITING LAWS MAKE AN ANNOUNCEMENT THAT IT PLANNED TO PURCHASE QVC STOCK ONE LAWYER NOTED THAT THERE ARE TIGHT RULES GOVERNING THE SIMULTANEOUS OFFERING AND BUYING OF SECURITIES DESIGNED TO GUARD AGAINST SECURITIES BEING SOLD AT ARTIFICIALLY INFLATED PRICES SOME TAKEOVER TRADERS BELIEVE MR DILLER MAY BE TRYING TO ACCOMPLISH HIS GOAL OF DENYING VIACOM 501 OF PARAMOUNT MERELY BY HOLDING OUT THE HOPE THAT A HIGHER BID MAY BE POSSIBLE AFTER FEB 14 WHEN BOTH QVC AND VIACOM WOULD BOTH BE FREE TO CHANGE THEIR BIDS IF NEITHER SIDE RECEIVED 501 OF PARAMOUNT'S STOCK SOME TRADERS WOULD LIKE TO SEE WHETHER QVC CAN COME UP WITH A HIGHER VALUE BEFORE THE CONTEST ENDS EVEN THOUGH THE BIDS HAVE GENERALLY DISAPPOINTED TRADERS SINCE EARLY DECEMBER WHEN A DELAWARE COURT ORDERED PARAMOUNT TO GIVE EQUAL CONSIDERATION TO THE BIDS FROM VIACOM AND QVC SINCE NOVEMBER PARAMOUNT STOCK HAS DECLINED BY MORE THAN 8 BEFORE REBOUNDING THIS WEEK ON HOPES OF A NEW QVC BID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PARAMOUNT SHARES ROSE 625 CENTS TO 77375 QVC STOCK WAS UNCHANGED AT 45125 ON THE NASDAQ STOCK MARKET WHILE VIACOM CLASS B SHARES JUMPED 1375 TO 3325 ON THE AMERICAN STOCK EXCHANGE ANOTHER FACTOR THAT COULD HURT VIACOM'S CHANCES OF RECEIVING 501 OF PARAMOUNT'S STOCK IS THAT ABOUT 17 MILLION PARAMOUNT SHARES ARE SUBJECT TO STOCKOPTION SALES WHICH MAY RESTRICT SOME OF THEM FROM BEING TENDERED OPTIONS ARE CONTRACTS TO BUY OR SELL AN UNDERLYING SECURITY AT A SPECIFIED PRICE 9402100132 940210 INTERNATIONAL ISRAEL AND PLO SETTLE JERICHO AND GAZA ISSUES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION REACHED AGREEMENT ON SOME NETTLESOME SECURITY ISSUES THAT HAVE STALLED THEIR ACCORD FOR PALESTINIAN SELFRULE IN THE GAZA STRIP AND JERICHO BUT MAY NEED SEVERAL MORE WEEKS TO WORK OUT OTHER DETAILS CONCLUDING A MEETING IN CAIRO EGYPT ISRAELI FOREIGN MINISTER SHIMON PERES SAID THAT HE AND YASSER ARAFAT CHAIRMAN OF THE PLO HAD SETTLED FIVE OR SIX OF THE MOST COMPLICATED ISSUES INVOLVED IN TURNING OVER CONTROL OF THE ISRAELIOCCUPIED GAZA STRIP AND WEST BANK TOWN OF JERICHO ACCORDING TO WIRESERVICE REPORTS BUT HE ADDED THAT WE DIDN'T COMPLETE OUR WORK AN ISRAELI OFFICIAL IN WASHINGTON SAID THE TWO SIDES STILL NEED TO RESOLVE ECONOMIC ISSUES INCLUDING QUESTIONS ABOUT CURRENCIES AND FOREIGN INVESTMENT RULES AS WELL AS ISSUES CONCERNING THE TRANSFER OF AUTHORITY SUCH AS WHO WILL PROVIDE VARIOUS MEDICAL SERVICES FOR PEOPLE IN THE TERRITORIES I'M SURE THAT RESOLVING THE SECURITY ISSUES WILL FACILITATE MOVING FORWARD BUT THERE'S STILL A LOT OF WORK TO BE DONE AND I'M AFRAID THAT IT WON'T COME QUICKLY THE OFFICIAL SAID ESTIMATING THAT THE PROCESS COULD TAKE SEVERAL MORE WEEKS THE ISRAELIS AND PALESTINIANS ARE ALREADY NEARLY TWO MONTHS BEHIND THE SCHEDULE THAT WAS AGREED TO WHEN THEY SIGNED THEIR HISTORIC ACCORD ON THE WHITE HOUSE LAWN SEPT 13 THE EUPHORIA OF THE HANDSHAKE THAT DAY BETWEEN MR ARAFAT AND ISRAELI PRIME MINISTER YITZHAK RABIN SOON WAS REPLACED BY A WAVE OF VIOLENCE IN THE OCCUPIED TERRITORIES AS THE WEEKS DRAGGED ON BEYOND THE DEC 13 DATE WHEN IMPLEMENTATION OF THE AGREEMENT WAS SUPPOSED TO BEGIN SUPPORT FOR THE PLAN DROPPED PRECIPITOUSLY AMONG BOTH ISRAELIS AND PALESTINIANS US OFFICIALS ARE HOPEFUL THAT YESTERDAY'S AGREEMENT ON SECURITY ISSUES WILL BEGIN TO BRAKE THE PESSIMISM AND SPUR THE PEACE PROCESS PRESIDENT CLINTON WHO LEARNED THAT MESSRS ARAFAT AND PERES HAD SIGNED THE PARTIAL AGREEMENT IN CAIRO AS A GROUP OF JEWISH LEADERS WERE BEING HOSTED IN THE WHITE HOUSE SAID ANOTHER BIG MILESTONE HAS BEEN ACHIEVED TODAY THE DISAGREEMENTS OVER SECURITY ISSUES STEMMED FROM THE TENSION BETWEEN THE PALESTINIANS' EFFORTS TO STRETCH THE DEFINITION OF THE LIMITED AUTONOMY BEING GRANTED BY ISRAEL AND THE ISRAELIS' DETERMINATION TO CONFINE THAT EFFORT SPECIFICALLY THE TWO SIDES WERE QUARRELING OVER CONTROL OF THE CROSSINGS FROM GAZA AND JERICHO TO EGYPT AND JORDAN SECURITY FOR JEWISH SETTLERS WHO REMAIN IN GAZA AND HOW MUCH LAND AROUND JERICHO WOULD BE INCLUDED IN PALESTINIAN CONTROL IN RESOLVING ONE OF THESE DISPUTES ACCORDING TO US OFFICIALS IT WAS AGREED THAT PALESTINIANS CROSSING INTO GAZA OR JERICHO WOULD FIRST GO THROUGH A PALESTINIAN SCREENING PROCESS AND THEN TO GIVE THE ISRAELIS AN INVISIBLE PRESENCE WOULD PASS BY A ONEWAY WINDOW FROM WHICH ISRAELI OFFICIALS WOULD OBSERVE THEM THOSE PALESTINIANS DEEMED TO BE SUSPICIOUS BY THE ISRAELIS WOULD BE SUBJECT TO ISRAELI INTERROGATION AND WOULD HAVE ACCESS TO A PALESTINIAN LAWYER BEFORE BEING TURNED BACK WHEN THE ECONOMIC AND CIVIL ISSUES ARE WORKED OUT IT WILL TRIGGER THE BEGINNING OF THE ISRAEL WITHDRAWAL FROM GAZA AND JERICHO THAT SHOULD HAVE BEGUN DEC 13 THEN THE CLOCK WILL BEGIN TICKING ON A FIVEYEAR INTERIM PERIOD THAT IS SUPPOSED TO LEAD TO A FINAL RESOLUTION OF THE ISRAELIPALESTINIAN CONFLICT NO LATER THAN THE END OF THE SECOND YEAR NEGOTIATIONS WILL BEGIN ON THE PERMANENT STATUS OF THE LANDS THAT ISRAEL OCCUPIED AFTER THE 1967 SIX DAY WAR THOSE TALKS ARE EXPECTED TO BE THORNY AND PROTRACTED 9402100131 940210 TREASURY SAYS SALES OF EE SAVINGS BONDS FELL 521 LAST MONTH WASHINGTON THE TREASURY SAID IT SOLD 122 BILLION OF SERIES EE SAVINGS BONDS IN JANUARY DOWN 521 FROM A YEAR EARLIER JANUARY SALES WERE UP 242 FROM DECEMBER THE VALUE OF SERIES EE SAVINGS BONDS HELD BY AMERICANS AT THE END OF JANUARY REACHED 16198 BILLION UP 86 FROM 14922 BILLION A YEAR EARLIER SAVINGS BONDS HELD FIVE YEARS OR MORE CURRENTLY PAY A MARKETBASED RATE OF 425 BONDS REDEEMED DURING THE FIRST FIVE YEARS EARN THE GUARANTEED MINIMUM RATE OF 4 9402100130 940210 US HEALTHCARE SEEKING PARTNERSHIPS WITH AS MANY AS 200 NORTHEAST HOSPITALS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL US HEALTHCARE INC ONE OF THE NATION'S LARGEST HEALTHMAINTENANCE ORGANIZATIONS IS SEEKING PARTNERSHIPS WITH AS MANY AS 200 HOSPITALS IN ITS SERVICE AREAS THE NEGOTIATIONS REPRESENT A MAJOR SWITCH IN STRATEGY FOR US HEALTHCARE TRADITIONALLY THE BLUE BELL PABASED HMO HAS AVOIDED DIRECT INVOLVEMENT IN HEALTHCARE DELIVERY INSTEAD IT HAS CONTRACTED WITH VAST NUMBERS OF INDEPENDENT DOCTORS AND HOSPITALS IN ITS TERRITORY WHICH STRETCHES FROM PENNSYLVANIA TO NEW HAMPSHIRE LIKE MANY HMOS US HEALTHCARE HAS BEEN KNOWN AS A TOUGH BARGAINER PRESSING HARD FOR DISCOUNT PRICES BUT AN EXECUTIVE CLOSE TO THE TALKS SAID US HEALTHCARE WANTS TO BE MORE COOPERATIVE IN ITS DEALINGS WITH HOSPITALS HE SAID THE HMO DOESN'T WANT TO BUY HOSPITALS OUTRIGHT BUT HAS PROPOSED GIVING STOCK OPTIONS TO HOSPITALS OR SETTING UP PROFITSHARING TRUSTS THAT WOULD BE JOINTLY OWNED BY US HEALTHCARE AND INDIVIDUAL HOSPITALS A US HEALTHCARE SPOKESWOMAN CONFIRMED THAT DISCUSSIONS ARE UNDER WAY BUT DECLINED TO COMMENT FURTHER IF THE TALKS SUCCEED THEY COULD PRODUCE A HEALTHCARE JUGGERNAUT ON THE EAST COAST ALREADY US HEALTHCARE PROVIDES COVERAGE FOR MORE THAN 15 MILLION PEOPLE FOR 1993 THE COMPANY'S NET INCOME SOARED 50 TO 2997 MILLION ON REVENUE OF 265 BILLION IT'S UNCLEAR THOUGH WHETHER HOSPITALS WILL WANT TO EMBRACE US HEALTHCARE'S OVERALL PACKAGE ALONG WITH ITS NEW INCENTIVES THE HEALTH PLAN ALSO IS LIKELY TO PUSH FOR STRICTER CONTRACTS THAT WILL ALIGN HOSPITALS MORE CLOSELY WITH THE HMO'S OWN PRIORITIES IN SOME CASES HOSPITALS COULD BE REQUIRED TO SHARE THE FINANCIAL RISK OF CARING FOR A LARGE POOL OF PATIENTS RATHER THAN BEING REIMBURSED AFTER THE FACT FOR EACH TREATMENT SUCH RISKSHARING SYSTEMS KNOWN AS CAPITATION ARE FAVORED BY HMOS BUT EVOKE MIXED FEELINGS AT BEST AMONG HOSPITAL EXECUTIVES ANOTHER POTENTIAL STICKING POINT INVOLVES HOW MUCH CONTROL A HOSPITAL'S MANAGEMENT TEAM WOULD HAVE TO SHARE WITH AN OUTSIDE PARTNER SEVERAL HOSPITAL EXECUTIVES WHO HAVE BEEN APPROACHED BY US HEALTHCARE SAID THEY ARE WEIGHING ITS PROPOSALS AGAINST A DIFFERENT WAY OF BOOSTING THEIR MARKET CLOUT FORMING ALLIANCES WITH LOCAL HOSPITALS DOCTORS AND OUTPATIENT CENTERS ELLIOT SUSSMAN CHIEF EXECUTIVE OFFICER OF LEHIGH VALLEY MEDICAL CENTER IN ALLENTOWN PA SAID HE HAS BEEN HOLDING TALKS WITH US HEALTHCARE BUT HASN'T DECIDED WHICH OPTIONS TO PURSUE THERE ARE ALL KINDS OF CONVERSATIONS GOING ON AMONG PROVIDERS NOW DR SUSSMAN SAID HE TERMED US HEALTHCARE'S PROPOSALS ONE POSSIBLE MODEL BUT SAID HE IS LOOKING AT OTHER CHOICES TOO THE HEAD OF PRINCETON MEDICAL CENTER IN NEW JERSEY DENNIS DOODY SAID HE HAS BEGUN TALKS WITH US HEALTHCARE AND IS INTERESTED IN FINDING OUT MORE BUT MR DOODY QUESTIONED WHETHER THE PROFITSHARING ARRANGEMENTS ALONE WOULD BE ENOUGH TO MAKE A COMMUNITY HOSPITAL ALIGN ITS DESTINY WITH US HEALTHCARE A MORE UPBEAT VIEW CAME FROM NANCY BRUNTON EXECUTIVE DIRECTOR OF MANAGED CARE AT OVERLOOK HOSPITAL IN SUMMIT NJ GIVEN THAT US HEALTHCARE HAS BEEN A LEADER IN THE INDUSTRY ANYTHING NEW THAT THEY TRY HAS A GOOD CHANCE OF SUCCESS SHE SAID MS BRUNTON SPECULATED THAT IF THE PARTNERSHIP CONCEPT CATCHES ON OTHER EAST COAST HMOS ARE LIKELY TO COPY IT SOME HOSPITAL EXECUTIVES THINK US HEALTHCARE MAY BE WOOING THEM AS A DEFENSIVE STRATEGY THE HOSPITAL MARKET IS CHANGING RAPIDLY IN US HEALTHCARE'S MAIN MARKETS CONCENTRATING POWER IN THE HANDS OF POTENTIAL RIVALS TO THE BIG HMO IN PHILADELPHIA A RIVAL INSURER INDEPENDENCE BLUE CROSS RECENTLY NEGOTIATED TO BUY SEVEN HOSPITALS MEANWHILE VARIOUS NEW JERSEY HOSPITALS ARE EXPLORING WAYS TO BAND TOGETHER THOSE ALLIANCES COULD UNDERCUT US HEALTHCARE'S ABILITY TO NEGOTIATE FAVORABLE CONTRACTS WITH INDIVIDUAL HOSPITALS US HEALTHCARE WOULDN'T SAY WHICH HOSPITALS IT IS WOOING THE HMO IS REFERRING TO ITS PROJECT AS THE COMMUNITY HOSPITAL NETWORK SUGGESTING THAT IT IS TARGETING MIDSIZE HOSPITALS IN SUBURBAN LOCATIONS RATHER THAN GIANT URBAN TEACHING HOSPITALS OR SMALL RURAL FACILITIES AS PART OF ITS PACKAGE US HEALTHCARE IS CONSIDERING WAYS THAT HOSPITALS COULD GET OPTIONS ON THE HMO'S STOCK IF THEY MEET CERTAIN PERFORMANCE TARGETS BECAUSE MOST HOSPITALS HAVE NONPROFIT STATUS THAT MAY BE HARD TO IMPLEMENT IN SOME STATES BUT US HEALTHCARE EVIDENTLY SEES STOCK OPTIONS AS A POTENT LURE OVER THE PAST THREE YEARS US HEALTHCARE'S STOCK HAS TRIPLED IN PRICE IN NASDAQ STOCK MARKET TRADING YESTERDAY THE STOCK FELL 150 TO 58125 9402100129 940210 WHO'S NEWS SONY CORP SONY CORP TOKYO SONY PICTURES ENTERTAINMENT SAID IT NAMED BENJAMIN S FEINGOLD PRESIDENT OF ITS COLUMBIA TRISTAR HOME VIDEO UNIT SUCCEEDING W PATRICK CAMPBELL WHO RECENTLY LEFT TO TAKE A SENIOR MANAGEMENT POSITION WITH AMERITECH MR FEINGOLD HAD BEEN SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT AT SONY PICTURES A UNIT OF THIS JAPANESE ELECTRONICS CONCERN 9402100128 940210 STATE OF OKLAHOMA FILES 67 MILLION CIVIL SUIT AGAINST THREE BROKERS NEW YORK THE STATE OF OKLAHOMA AND THE STATE'S DEPARTMENT OF SECURITIES EACH FILED A CIVIL SUIT IN OKLAHOMA COUNTY DISTRICT COURT AGAINST THREE BROKERAGE HOUSES SEEKING 67 MILLION IN ALLEGED EXCESSIVE PROFIT FROM BOND TRADING FOR THE STATE THE OKLAHOMA ATTORNEY GENERAL'S OFFICE SAID THE CHARGES STEM FROM A SERIES OF TRANSACTIONS INVOLVING THE PURCHASE AND SALE OF US GOVERNMENT SECURITIES BY THE OKLAHOMA STATE TREASURER'S OFFICE THE SUIT NAMED PLANNERS INDEPENDENT MANAGEMENT INC SAN DIEGO MABON SECURITIES CORP NEW YORK AND ADLER COLEMAN CLEARING CORP NEW YORK ALONG WITH THREE INDIVIDUAL AGENTS OF PLANNERS INDEPENDENT MANAGEMENT A SPOKESMAN FOR THE OKLAHOMA ATTORNEY GENERAL'S OFFICE SAID THE PLAINTIFFS IN THE TWO CASES ARE SEEKING TO CONSOLIDATE THEIR ACTIONS A RECENTLY COMPLETED STATE AUDIT FOUND ALLEGEDLY UNETHICAL TRADING PRACTICES AND CLAIMED THAT SECURITIES FIRMS HAD OVERCHARGED THE TREASURER'S OFFICE BY MORE THAN 6 MILLION AMONG THE ALLEGATIONS MADE BY THE STATE AND SECURITIES REGULATORS BUYING AND SELLING SECURITIES AT UNFAIR PRICES BY APPLYING EXCESSIVE MARKUPS AND MARKDOWNS DEPRIVING THE STATE OF THE BEST AVAILABLE MARKET PRICE AND ALLOWING OR RECEIVING PAYMENTS WHEN NO SERVICES WERE PERFORMED 9402100127 940210 POLITICS & POLICY WHITE HOUSE ACTS SWIFTLY TO WARD OFF CIVILRIGHTS POST NOMINEE'S ADVERSARIES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BATTLE TO DEFINE DEVAL PATRICK BEGAN EVEN BEFORE HE WAS OFFICIALLY NOMINATED TO BE PRESIDENT CLINTON'S ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE DAY BEFORE THE NOMINATION CLINT BOLICK THE CONSERVATIVE LEGAL GADFLY WHO LED THE SUCCESSFUL ASSAULT ON LANI GUINIER MR CLINTON'S FIRST NOMINEE FOR THE JOB SENT NEWS ORGANIZATIONS A NEWS RELEASE LABELING MR PATRICK A STEALTH GUINIER TWO DAYS LATER MR BOLICK FOLLOWED WITH AN OPED PIECE IN THE WALL STREET JOURNAL WHOSE HEADLINE CALLED MR PATRICK A QUOTA CLONE A JOURNAL HEADLINE ON AN EARLIER BOLICK BROADSIDE AGAINST MS GUINIER HAD DUBBED HER A QUOTA QUEEN BUT THIS TIME THE ADMINISTRATION LEARNING FROM PAST MISTAKES MOVED JUST AS SWIFTLY TO PREVENT THE NOMINEE FROM BEING PLACED IN A BOX DESIGNED BY ADVERSARIES OFFICIALS INTRODUCED THE 37YEAROLD BOSTON LAWYER TO REPORTERS PRIOR TO HIS FIRST MEETING WITH THE PRESIDENT LATER THEY FETED HIM WITH A RECEPTION ATTENDED BY CIVILRIGHTS ACTIVISTS AND MEMBERS OF CONGRESS AND WITHIN AN HOUR OF HIS WHITE HOUSE NOMINATION CEREMONIES THEY TOOK HIM TO CAPITOL HILL TO MEET DEMOCRATIC AND REPUBLICAN LEGISLATORS SEN EDWARD KENNEDY D MASS INTRODUCED HIM TO LAWMAKERS AS THEY CAME OFF THE SENATE FLOOR MR CLINTON HIMSELF SIGNALED THE ADMINISTRATION'S NEW MORE AGGRESSIVE APPROACH THE NOMINEE'S 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 HE SAID IF THEY ATTACK HIS RECORD IT MEANS JUST EXACTLY WHAT WE'VE ALL SUSPECTED ALL ALONG THEY DON'T GIVE A RIFF ABOUT CIVIL RIGHTS WELL THOSE OF US WHO CARE ABOUT CIVIL RIGHTS WERE ELECTED BY THE AMERICAN PEOPLE TO TAKE CARE OF THEM AND THAT'S WHAT WE INTENDED TO DO ALL THIS HAS PAID OFF FOR THE WHITE HOUSE SO FAR MR PATRICK HASN'T ENCOUNTERED SUBSTANTIAL OPPOSITION IN CONGRESS NOBODY HAS GIVEN ANY INDICATION OF PICKING UP THE CUDGEL ON THIS PARTICULAR INDIVIDUAL SAYS ONE GOP SENATE STAFFER OF COURSE MR PATRICK'S NOMINATION HAS BEEN HELPED BY THE FACT THAT WHILE HE HAS PARTICIPATED IN SOME IMPORTANT CIVILRIGHTS CASES HE LACKS AN EXTENSIVE PAPER TRAIL NUMEROUS PUBLISHED ARTICLES THAT OPPONENTS CAN CITE TO ATTACK HIS IDEAS THE ADMINISTRATION PRESENTED HIM AS A MODERNDAY SUCCESS STORY A YOUNG JAZZ LOVER AND A GOOD COOK WHO CAME FROM A BROKEN HOME AND SURMOUNTED WELFARE POVERTY AND TURMOIL GROWING UP ON CHICAGO'S SOUTH SIDE HE ONCE DESCRIBED HIS CHILDHOOD AS A LIFE OF WANT OF DEEPLY SEGREGATED AND ILLEQUIPPED SCHOOLS OF GANG VIOLENCE AND LIMITED HOPE FROM THERE HE WENT TO THE EXCLUSIVE MILTON ACADEMY IN MASSACHUSETTS AND THEN TO HARVARD UNIVERSITY WHERE HE PLAYED SQUASH AND EARNED AN UNDERGRADUATE DEGREE IN LITERATURE AND A LAW DEGREE SUPPORTERS PROMOTE MR PATRICK AS WELL WITHIN THE MAINSTREAM OF CIVILRIGHTS THINKING A MEMBER OF A BLUECHIP LAW FIRM AND SOMEONE EVEN REPUBLICANS CAN SUPPORT IN A JUNE COMMENCEMENT ADDRESS AT MILTON HE LAMENTED THE LACK OF A NATIONAL CONSENSUS ON CIVIL RIGHTS THE NATION IS TRAPPED IN A PATTERN OF NEGLECT AND RETRENCHMENT HE SAID BECAUSE OF A FAILURE OF WILL A LACK OF LEADERSHIP AND FEAR INDEED WE SEEM TO HAVE ABANDONED ANY SENSE OF THE POSSIBILITY OF NATIONAL COMMUNITY MR BOLICK DECRIES AN ARGUMENT MR PATRICK MADE AGAINST THE DEATH PENALTY THE NOMINEE HAD ARGUED UNSUCCESSFULLY BEFORE THE SUPREME COURT THAT THE DEATH PENALTY IS UNCONSTITUTIONAL BECAUSE IT IS USED DISPROPORTIONATELY AGAINST BLACK MEN MR BOLICK SAYS THE CASE INDICATES MR PATRICK BELIEVES THAT OTHERWISE FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES EQUALITY OF OPPORTUNITY NOT EQUALITY OF RESULTS SHOULD BE THE CIVIL RIGHTS TOUCHSTONE MR BOLICK ARGUES THE CONSERVATIVE CRITIC ALSO MAKES MUCH OF MR PATRICK'S ASSOCIATION WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE LEGAL DEFENSE AND EDUCATIONAL FUND THE NOMINEE WORKED FOR THAT GROUP AFTER GRADUATING FROM LAW SCHOOL AND CURRENTLY SERVES ON ITS NATIONAL BOARD AND NEW ENGLAND STEERING COMMITTEE MR BOLICK CONTENDS THAT THE ORGANIZATION RELENTLESSLY PUSHES RACIAL QUOTAS BUSING AND LAWS GUARANTEEING MINORITY COMPANIES GOVERNMENT WORK BUT FEW HAVE BOUGHT THE NOTION THAT THE ORGANIZATION AND MR PATRICK ARE RADICAL CIVILRIGHTS OUTSIDERS SUPPORTERS POINT TO THE NUMBER OF FEDERAL AND STATE JUDGES LAW DEANS AND UNIVERSITY PRESIDENTS WHO CAME FROM LEGAL DEFENSE FUND RANKS AND NOTE THAT SOLICITOR GENERAL DREW DAYS WORKED FOR THE GROUP INDEED THIS TIME IT'S CIVILRIGHTS LEADERS AND MR CLINTON WHO ARE ATTEMPTING TO CAST MR BOLICK AS OUTSIDE THE MAINSTREAM ON PUBLIC TELEVISION'S MACNEILLEHRER NEWSHOUR LEGAL DEFENSE FUND EXECUTIVE DIRECTOR ELAINE JONES GOT MR BOLICK TO ADMIT THAT EVEN THE LATE SUPREME COURT JUSTICE THURGOOD MARSHALL PROBABLY IN MS JONES' WORDS COULD NOT PASS THE CLINT BOLICK TEST 9402100126 940210 COFFEE EXPORTER FACES FEDERAL FRAUD CHARGES IN CASE INVOLVING BANKS NEW YORK A COLOMBIAN COFFEE EXPORTER WAS CHARGED WITH DEFRAUDING SEVERAL BANKS OF SOME 97 MILLION BY SUBMITTING ALLEGEDLY FALSE DOCUMENTS SEEKING PAYMENT FOR THE EXPORT OF LARGE AMOUNTS OF NONEXISTENT COFFEE RUBEN DARIO ECHEVERRI 43 YEARS OLD WHOSE FAMILY CONTROLLED A COLOMBIAN COMPANY CALLED GONCHECOL LTDA WAS ARRESTED IN MIAMI AND CHARGED WITH ONE COUNT OF BANK FRAUD FEDERAL PROSECUTORS ALLEGE MR ECHEVERRI BETWEEN DECEMBER 1985 AND AUGUST 1986 SUBMITTED FICTITIOUS BILLS OF LADING INDICATING THE COFFEE HAD BEEN LOADED ONTO TRUCKS TO COLLECT ON A SERIES OF LETTERS OF CREDIT ACCORDING TO A COMPLAINT FILED IN A FEDERAL COURT IN NEW YORK MR ECHEVERRI HASN'T RETAINED AN ATTORNEY YET AMONG THE FINANCIAL INSTITUTIONS ALLEGEDLY DEFRAUDED ARE CHEMICAL BANKING CORP'S CHEMICAL BANK 35 MILLION BANQUE PARIBAS 25 MILLION NATIONAL WESTMINSTER BANK PLC'S NATIONAL WESTMINSTER BANK USA 18 MILLION AND AMERICAN EXPRESS CO'S AMERICAN EXPRESS BANK LTD 13 MILLION IF CONVICTED MR ECHEVERRI FACES A MAXIMUM OF 10 YEARS IN PRISON AND A FINE OF AS MUCH AS DOUBLE THE AMOUNT OF THE FRAUD ACCORDING TO PROSECUTORS 9402100124 940210 MECHANICAL TECHNOLOGY CHIEF LATHAM NY MECHANICAL TECHNOLOGY INC SAID IT NAMED R WAYNE DIESEL PRESIDENT AND CHIEF EXECUTIVE OFFICER FOLLOWING THE DEPARTURE OF MARK L HYLAND 47 YEARS OLD MR HYLAND NAMED PRESIDENT AND CEO ABOUT A YEAR AGO LEFT BECAUSE OF REASONS RELATED TO IRRECONCILABLE DIFFERENCES REGARDING CERTAIN MANAGEMENT PRACTICES THE COMPANY SAID MR DIESEL 47 PREVIOUSLY WAS PRESIDENT AND CHIEF FINANCIAL OFFICER OF LAWRENCE MANAGEMENT GROUP INC THE MANAGEMENTSERVICES UNIT OF LAWRENCE INSURANCE GROUP INC WHICH BOUGHT A 49 STAKE IN MECHANICAL TECHNOLOGY IN JULY 1992 MECHANICAL TECHNOLOGY PROVIDES TECHNOLOGYDEVELOPMENT SERVICES AND MAKES TESTING AND MEASUREMENT PRODUCTS FOR THE DEFENSE AND AEROSPACE MARKETS 9402100123 940210 INTERNATIONAL SCANDINAVIA AIRLINES SYSTEM STOCKHOLM SCANDINAVIA AIRLINES SYSTEM SAID IT INTENDS TO LOWER OPERATING COSTS BY 291 BILLION KRONOR 3629 MILLION BY THE END OF 1995 THE COSTCUTTING PROGRAM INVOLVES THE ELIMINATION OF 2900 FULLTIME JOBS OR ROUGHLY ONE OF EVERY SEVEN OF THE AIRLINES' 20000 FULLTIME EMPLOYEES SAID SAS THE PROGRAM APPROVED BY THE SAS BOARD YESTERDAY EXPANDS SAVING MEASURES ANNOUNCED IN NOVEMBER BY INTERIM PRESIDENT JAN REINAS BY ROUGHLY 400 MILLION KRONOR 9402100122 940210 MARKETING & MEDIA FILM STUDIOS JUMP ON OSCAR BANDWAGON TO BOOST BOXOFFICE TAKE OF CONTENDERS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF HOLLYWOOD MOVIE STUDIOS SCRAMBLED TO TAKE ADVANTAGE OF THE HYPE SURROUNDING YESTERDAY'S ACADEMY AWARD NOMINATIONS WHICH WILL PROBABLY BOOST ALL FIVE BESTPICTURE NOMINEES AT THE BOX OFFICE TYPICALLY A NUMBER OF THE NOMINATED FILMS LEAVE THEATERS OR ARE RELEASED ON VIDEOCASSETTE BY THE TIME THE ACADEMY OF MOTION PICTURE ARTS & SCIENCES ANNOUNCES THE CANDIDATES AS A RESULT BOX OFFICES GENERALLY CAN'T BENEFIT FROM THE ENDORSEMENT THIS YEAR HOWEVER FOUR OF THE NOMINATED FILMS ARE STILL IN THEATERS THE FIFTH THE FUGITIVE IS BEING RERELEASED NATIONWIDE AT 1000 THEATERS FRIDAY UNIVERSAL'S SCHINDLER'S LIST WAS THE BIG WINNER CAPTURING 12 NOMINATIONS THAT INCLUDED NODS FOR BEST PICTURE AND FOR ITS DIRECTOR STEVEN SPIELBERG THE HOLOCAUST EPIC WOULD BE EXPECTED TO SHOW ITS BIGGEST BOXOFFICE INCREASE FOLLOWING THE OSCAR CEREMONY ON MARCH 21 IF AS MANY EXECUTIVES EXPECT IT WINS THE OSCAR THE FILM SO FAR HAS GROSSED ABOUT 30 MILLION ANOTHER UNIVERSAL MOVIE IN THE NAME OF THE FATHER IS EXPECTED TO BENEFIT MORE IMMEDIATELY THE DRAMA ABOUT THE IRISH REPUBLICAN ARMY WAS THE BIG SURPRISE AT THE NOMINATIONS CEREMONY HERE GARNERING SEVEN NOMINATIONS INCLUDING BEST PICTURE THE FILM WHICH HAS TAKEN IN ONLY 64 MILLION SINCE ITS OPENING DEC 29 IS PLAYING AT JUST 176 THEATERS ARMED WITH A NEW AD CAMPAIGN HERALDING THE ACADEMY'S TRIBUTE UNIVERSAL WILL EXPAND THE MOVIE'S RUN FRIDAY TO ABOUT 500 THEATERS UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA WON 23 NOMINATIONS THIS YEAR TIME WARNER INC'S WARNER BROS HOPES TO SQUEEZE A FEW MORE DOLLARS OUT OF BESTPICTURE NOMINEE THE FUGITIVE THIS WEEKEND HOLLYWOOD EXECUTIVES SPECULATE THAT WHILE THE HARRISON FORD ACTION FILM DOESN'T HAVE MUCH OF A SHOT AT WINNING THE MAIN PRIZE THEY BELIEVE WARNER CAN SELL A LARGE CHUNK OF TICKETS IN ITS RERELEASE ANYWAY THE OTHER BESTPICTURE NOMINEES ARE COLUMBIA PICTURES' THE REMAINS OF THE DAY AND MIRAMAX FILMS' THE PIANO THOSE FILMS WHICH EACH WON EIGHT NOMINATIONS HAVE BEEN IN THEATERS FOR MORE THAN 10 WEEKS BUT ARE BELIEVED TO HAVE STRONG BOXOFFICE POTENTIAL MIRAMAX IS A UNIT OF WALT DISNEY CO REMAINS WHICH ALSO CAPTURED NOMINATIONS FOR ANTHONY HOPKINS AND EMMA THOMPSON PLAYED THIS PAST WEEKEND AT 174 THEATERS ON FRIDAY THE FILM WILL MOVE TO ABOUT 250 THEATERS MOSTLY IN MAJOR CITIES INDUSTRY EXECUTIVES SPECULATE THAT THE MOVIE WHICH HAS TAKEN IN ABOUT 20 MILLION COULD GROSS AN ADDITIONAL 5 MILLION TO 10 MILLION COLUMBIA IS A UNIT OF SONY CORP'S SONY PICTURES ENTERTAINMENT WHICH SAID ITS THREE SEPARATE DISTRIBUTION COMPANIES WON A TOTAL OF 31 NOMINATIONS THE PIANO WHICH ALSO WON A NOMINATION FOR DIRECTOR JANE CAMPION WILL JUMP TO AS MANY AS 700 THEATERS THIS WEEKEND FROM THE CURRENT 400 SCREENS THE FILM WILL INCREASE ITS SHOWING TO A TOTAL OF ABOUT 1000 THEATERS FEB 18 MIRAMAX COCHAIRMAN HARVEY WEINSTEIN ACKNOWLEDGING THAT SCHINDLER'S LIST IS THE FAVORITE NONETHELESS PREDICTED A MAJOR UPSET IN THE BEST PICTURE OR BEST DIRECTOR CATEGORY MR WEINSTEIN ESTIMATED THAT THE PIANO WHICH HAS GROSSED 26 MILLION WILL EASILY REACH A TAKE OF 40 MILLION BEFORE THE AWARDS CEREMONY DISNEY PLANS TO RERELEASE WHAT'S LOVE GOT TO DO WITH IT TO REFLECT ITS WINNING NOMINATIONS FOR STARS ANGELA BASSETT AND LAURENCE FISHBURNE AND MANY MORE AUDIENCES WILL BE ABLE TO SEE YOUNG ACTOR LEONARDO DICAPRIO IN PARAMOUNT PICTURES' WHAT'S EATING GILBERT GRAPE WHEN THAT MOVIE EXPANDS TO AROUND 600 THEATERS ON MARCH 4 MR DICAPRIO WAS NOMINATED FOR BEST SUPPORTING ACTOR 9402100121 940209 ECONOMY PRODUCTIVITY SURGED AT 42 ANNUAL RATE IN THE FOURTH QUARTER WASHINGTON PRODUCTIVITY OF AMERICAN BUSINESS SURGED AT A 42 ANNUAL RATE IN LAST YEAR'S FOURTH QUARTER AS FACTORIES MANAGED TO MAKE MANY MORE GOODS WITHOUT ADDING VERY MANY WORKERS FOR ALL OF LAST YEAR THE LABOR DEPARTMENT SAID THE PRODUCTIVITY OF AMERICAN BUSINESS EXCLUDING FARMS ROSE BY 16 THAT WAS MORE THAN IN MOST RECENT YEARS BUT BELOW THE 31 IMPROVEMENT IN 1992 PRODUCTIVITY MEASURES OUTPUT PER HOUR OF WORK IMPROVING PRODUCTIVITY IS THE KEY TO RISING LIVING STANDARDS THE LABOR DEPARTMENT SAID THAT MANUFACTURING PRODUCTIVITY INCREASED AT A 78 RATE IN THE FOURTH QUARTER THAT WAS PRIMARILY BECAUSE MAKERS OF DURABLE OR LONGLIVED GOODS IMPROVED PRODUCTIVITY AT A HUGE 128 RATE FOR THE YEAR FACTORY PRODUCTIVITY ROSE BY 53 ITS BEST GAIN SINCE 1987 OUTPUT ROSE 49 WHILE HOURS WORKED ACTUALLY FELL BY 03 ECONOMISTS ARE STILL DEBATING WHETHER THE RECENT IMPROVEMENTS IN PRODUCTIVITY REFLECT THE USUAL POSTRECESSION TREND OR WHETHER SOMETHING MORE FUNDAMENTAL IS CHANGING UNIT LABOR COSTS IN NONFARM BUSINESSES AN IMPORTANT INDICATOR OF IN FLATION TRENDS FELL AT A 12 RATE IN THE FOURTH QUARTER THEY WERE UP 21 FOR THE YEAR SLIGHTLY HIGHER THAN LAST YEAR'S 17 INCREASE IN MANUFACTURING UNIT LABOR COSTS FELL 24 LAST YEAR THE FIRST SUCH DECLINE SINCE 1987 9402100120 940210 AMERICA WEST AIR TRAFFIC ROSE PHOENIX AMERICA WEST AIRLINES SAID ITS JANUARY TRAFFIC INCREASED 116 THE AIRLINE REPORTED REVENUE PASSENGER MILES OF 9315 MILLION FOR THE MONTH UP FROM 8345 MILLION IN JANUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 629 FROM 57 A YEAR EARLIER 9402100119 940210 GLATFELTER TO ELIMINATE 100 JOBS SPRING GROVE PA PH GLATFELTER CO A MAKER OF PRINTING TOBACCO AND SPECIALTY PAPERS SAID IT WOULD ELIMINATE 100 JOBS AT ITS ECUSTA DIVISION TO IMPROVE PROFITABILITY THE LAYOFFS WHICH FOLLOW 180 LAST YEAR REPRESENT 7 OF THE DIVISION'S TOTAL WORK FORCE THEY WILL BE MADE AT THE COMPANY'S PISGAH FOREST NC PLANT EFFECTIVE MARCH 31 GLATFELTER SAID 9402100118 940210 TEXACO REACHES 250 MILLION SETTLEMENT IN DECADELONG DISPUTE WITH LOUISIANA BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC SAID IT SETTLED 11 BILLION OF CLAIMS INVOLVING A ROYALTY DISPUTE WITH LOUISIANA FOR 250 MILLION PUTTING TO REST A LEGAL WRANGLE THAT HAS PLAGUED THE COMPANY FOR A DECADE THE OUTOFCOURT SETTLEMENT CALLS FOR TEXACO TO PAY THE STATE OVER A THREEYEAR PERIOD WITH A FIRST INSTALLMENT OF 150 MILLION DUE SHORTLY AFTER THE AGREEMENT RECEIVES FINAL APPROVALS AN ADDITIONAL TWO PAYMENTS OF 50 MILLION EACH WILL BE MADE OVER THE FOLLOWING TWO YEARS THE COMPANY SAID IT HAS SET ASIDE RESERVES THAT WILL COVER THE FULL SETTLEMENT SO THERE WON'T BE ANY CHARGES TO EARNINGS AS PART OF THE AGREEMENT THE WHITE PLAINS NY OIL COMPANY ALSO SAID IT WILL LAUNCH AN EXPANDED EXPLORATION PROGRAM IN THE STATE WHICH WILL RESULT IN THE CREATION OF 500 JOBS THE PROGRAM WILL TRIGGER 152 MILLION OF SPENDING OVER FIVE YEARS BY TEXACO AND OTHER COMPANIES THAT MIGHT BECOME INVOLVED LOUISIANA HAS ALWAYS PLAYED AN IMPORTANT PART IN TEXACO'S OIL AND NATURALGAS PRODUCTION WITH ACREAGE THERE ACCOUNTING FOR ABOUT 22 OF THE COMPANY'S US OIL PRODUCTION INDEED TEXACO HAS BEEN A SIGNIFICANT PLAYER IN THE STATE ESPECIALLY IN GAS PRODUCTION SINCE EARLY IN THE CENTURY MANY OF THE 50 LEASES IN DISPUTE WERE ACQUIRED MORE THAN 60 YEARS AGO TEXACO SAID THAT PUTTING AN END TO THE SUIT WHICH WOULD HAVE GONE TO TRIAL IN OCTOBER IS A MAJOR ACCOMPLISHMENT IT GIVES US CLEAR TITLE ON SIGNIFICANT ACREAGE SAID ALFRED C DECRANE JR TEXACO'S CHAIRMAN WE COULDN'T DO ANY MAJOR WORK ON THESE LEASES BECAUSE WE FACED THE THREAT OF LOSING THEM WALL STREET ANALYSTS EXPECT RESOLUTION OF THE LITIGATION WILL ALLOW TEXACO TO INCREASE ITS US PRODUCTION AND ADD TO ITS DOMESTIC RESERVE BASE SINCE IT WILL BE ABLE TO ONCE AGAIN AGGRESSIVELY EXPLORE AND DEVELOP OIL PROSPECTS IN LOUISIANA BERNARD PICCHI OF KIDDER PEABODY & CO SAID THE ODDS ARE GOOD THAT TEXACO WILL BE ABLE TO SQUEEZE ADDITIONAL BARRELS OUT OF THE STATE THERE'S BEEN A REVOLUTION IN THE TYPE OF TECHNOLOGY AVAILABLE FOR EXPLORATION AND PRODUCTION SINCE THE COMPANY GOT TIED UP IN THE DISPUTE MORE THAN A DECADE AGO HE SAID THE SETTLEMENT IS ALSO IMPORTANT TO NEW ORLEANSBASED LOUISIANA LAND & EXPLORATION CO WHICH HAD LEASED TEXACO SOME OF THE LAND IN DISPUTE IN FACT LOUISIANA LAND AS A CODEFENDANT IN THE SUIT HAS AGREED TO PAY TEXACO 5 MILLION TOWARD THE SETTLEMENT BENTON OIL & GAS CO AN OIL AND GAS PRODUCTION COMPANY BASED IN OXNARD CALIF ALSO STANDS TO GAIN BENTON OWNS A WORKING INTEREST IN THREE OF THE LEASES INVOLVED REPRESENTING ALMOST ALL OF THE COMPANY'S US OIL PRODUCTION AND RESERVE BASE WITH THE DISPUTE PUT TO REST THE COMPANY SAID LENDERS WILL NOW ALLOW IT TO BORROW AGAINST THESE RESERVES IMPROVING THE COMPANY'S FINANCIAL FLEXIBILITY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TEXACO CLOSED AT 67 A SHARE UP 375 CENTS AND LOUISIANA LAND CLOSED AT 4025 A SHARE UP 125 CENTS IN NASDAQ STOCK MARKET TRADING BENTON CLOSED AT 434375 A SHARE UP 3125 CENTS THE DISPUTE WHICH TEXACO SAID SURFACED IN THE EARLY 1980S INVOLVED CLAIMS BY LOUISIANA THAT TEXACO HAD UNDERPAID ITS NATURALGAS ROYALTIES TO THE STATE DATING TO 1970 A TEXACO SPOKESMAN SAID THE ORIGINAL AMOUNT SOUGHT BY LOUISIANA WAS 387 MILLION AND THE NUMBER GREW AS TIME PASSED THE STATE CLAIMED THAT TEXACO WAS OBLIGATED TO PAY ROYALTIES ON THE GAS IT PRODUCED BASED ON THE MARKET VALUE OF THE GAS RATHER THAN ON THE CONTRACTUAL PRICE THE COMPANY WAS ACTUALLY GETTING THE TEXACO SPOKESMAN SAID THAT THE CONTRACTS WHICH WERE TYPICALLY STRUCK ON A LONGTERM BASIS FETCHED CONSIDERABLY LESS THAN SPOT OR NONCONTRACT COMMITMENTS THE STATE ALLEGED THAT TEXACO SHOULD HAVE SOLD A CERTAIN PORTION OF GAS FROM STATE LEASES AS NEW CONTRACTS WHICH WOULD HAVE COMMANDED HIGHER PRICES LOUISIANA'S CLAIMS BECAME ENTANGLED IN TEXACO'S BANKRUPTCY PROCEEDINGS IN 1987 WHICH TURNED THE STATE INTO ONE OF THE COMPANY'S MAJOR CREDITORS UPON THE COMPANY'S EMERGENCE FROM THE PROCEEDINGS THE CLAIMS WERE REMANDED TO BANKRUPTCY COURT IN LOUISIANA THE SETTLEMENT MUST STILL BE APPROVED BY LOUISIANA'S MINERAL BOARD AS WELL AS A FEDERAL DISTRICT COURT JUDGE IN THE STATE 9402100117 940210 INTERNATIONAL STORA UNIT WILL RAISE PULP PRICES STOCKHOLM STORA AB THE LARGEST FORESTPRODUCTS GROUP IN EUROPE SAID ITS STORA CELL UNIT INTENDS TO RAISE PRICES FOR PAPER PULP MARCH 1 FOR LONGFIBER PULP THE PRICE INCREASES TO 510 A TON FROM 460 A TON WHILE THE PRICE OF SHORTFIBER PULP RISES TO 400 EUROPEAN CURRENCY UNITS 442 A TON FROM 350 ECU A TON 9402100116 940210 WHO'S NEWS ASK GROUP'S FALOTTI UNEXPECTEDLY RESIGNS FOR PERSONAL REASONS SANTA CLARA CALIF ASK GROUP INC SAID PIER CARLO FALOTTI ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED FOR PERSONAL REASONS MR FALOTTI 51 YEARS OLD HAD BEEN WITH THE SOFTWARE CONCERN SINCE THE SUMMER OF 1992 BEFORE THAT HE WAS PRESIDENT OF DIGITAL EQUIPMENT CORP'S BIG EUROPEAN UNIT HE HAD WORKED 23 YEARS AT DIGITAL A SPOKESWOMAN SAID MR FALOTTI'S UNEXPECTED RESIGNATION WAS DUE TO FAMILY CONSIDERATIONS BUT WOULDN'T ELABORATE SHE SAID THE COMPANY DIDN'T KNOW OF MR FALOTTI'S PROFESSIONAL PLANS AND THAT HE WASN'T AVAILABLE FOR COMMENT LESLIE WRIGHT 40 ASK'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED ACTING OPERATING OFFICER UNTIL A NEW CHIEF EXECUTIVE IS FOUND FOR ITS FISCAL SECOND QUARTER ENDED DEC 31 ASK POSTED A NET LOSS OF 137 MILLION OR 59 CENTS A SHARE COMPARED TO NET INCOME OF 36 MILLION OR 16 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 1006 MILLION FROM 1135 MILLION FOR THE SIX MONTHS ASK POSTED A NET LOSS OF 205 MILLION OR 89 CENTS A SHARE ON REVENUE OF 1845 MILLION COMPARED WITH A YEAREARLIER LOSS OF 4 MILLION OR 18 CENTS A SHARE ON REVENUE OF 1973 MILLION ON THE NASDAQ STOCK MARKET YESTERDAY ASK CLOSED AT 8625 DOWN 375 CENTS OR 42 9402100115 940210 BUSINESS BRIEFS STAFF BUILDERS INC ACQUIRED MEDICAL STAFFING SPECIALISTS INC GRETNA LA AND DIGNITY INC BRANSON MO TERMS WEREN'T DISCLOSED RAMSAYHMO INC AGREED TO ACQUIRE THROUGH A SUBSIDIARY ALL THE ASSETS OF GENESIS HEALTH SYSTEM INC ORLANDO FLA TERMS WEREN'T DISCLOSED GENERAL ELECTRIC CO'S GE CAPITAL MODULAR SPACE UNIT DEVON PA AGREED TO BUY THE MODULAIRE DIVISION OF WASTE MANAGEMENT INC A UNIT OF WMX TECHNOLOGIES INC TERMS WEREN'T DISCLOSED HELEN OF TROY CORP'S SHAREHOLDERS APPROVED A PLAN TO REINCORPORATE THE COMPANY IN BERMUDA SHAREHOLDERS WILL EXCHANGE THEIR SHARES FOR AN EQUAL NUMBER OF SHARES IN NEWLY FORMED HELEN OF TROY LTD BERMUDA CAVALIER HOMES INC WILL OPEN AN ADDITIONAL FACILITY TO PRODUCE MOBILE HOMES IN WINFIELD ALA FOR ITS BUCCANEER SUBSIDIARY 9402100114 940210 INTERNATIONAL SIEMENS GETS ASIAN PACTS SPECIAL TO THE WALL STREET JOURNAL MUNICH SIEMENS AG ANNOUNCED IT HAS ORDERS FOR TELECOMMUNICATIONS PROJECTS IN THE PHILIPPINES AND VIETNAM THE CONTRACT IN THE PHILIPPINES IS VALUED AT ABOUT 230 MILLION MARKS 1303 MILLION AND INVOLVES INSTALLING ABOUT 12 MILLION DIGITAL TELEPHONES FOR PHILIPPINE LONG DISTANCE TELEPHONE CO THE SECOND CONTRACT IS WITH VIETNAM POSTS AND TELECOMMUNICATIONS AND IS VALUED AT 20 MILLION MARKS THE PROJECT WOULD MODERNIZE HO CHI MINH CITY'S NETWORK AND INVOLVES ABOUT 60000 CONNECTIONS THE COMPANY SAID 9402100113 940210 POLITICS & PEOPLE THE BALANCEDBUDGET HOAX BY ALBERT R HUNT CONGRESS VOTES DRASTIC REDUCTIONS IN ARMY AND MARINE FORCE LEVELS RAISES CORPORATE TAXES BY 50 BILLION SLICES SOCIAL SECURITY BENEFITS AND CUTS BILLIONS OF CRIME FIGHTING AND HIGHWAY FUNDS EARMARKED FOR TEXAS IT MAY SOUND LIKE POLITICAL SUICIDE BUT ALL WOULD BE DISTINCT POSSIBILITIES IF THE SENATE LATER THIS MONTH APPROVES A PROPOSED CONSTITUTIONAL AMENDMENT MANDATING A BALANCED BUDGET DESPITE DECLINING PUBLIC FERVOR FOR DEFICIT REDUCTION INSIDERS SAY THERE'S AN EVEN SHOT THE AMENDMENT WILL PASS CONGRESS EVERY LAWMAKER WHO VOTES FOR IT SHOULD HAVE TO ANSWER ONE SIMPLE QUESTION HOW WITH SPECIFICITY WOULD HE OR SHE BALANCE THE BUDGET BY THE END OF THE DECADE TO REACH A BALANCED BUDGET BY FISCAL 2000 AN ADDITIONAL 600 BILLION IN BUDGET CUTS OR TAX INCREASES MUST BE ENACTED OVER THE NEXT FIVE YEARS BY CONTRAST LAST YEAR CONGRESS BY THE GRAND MARGIN OF ONE VOTE REDUCED THE DEFICIT BY 433 BILLION A POLITICALLY REALISTIC ROAD MAP TO BALANCING THE BUDGET IN FIVE YEARS WOULD HAVE 25 COME FROM CUTTING DEFENSE SPENDING ANOTHER QUARTER FROM HIGHER REVENUES AND HALF FROM REDUCING SPENDING INCLUDING ENTITLEMENTS ON TAXES IF A FEW MORE EXCISE AND ENERGY LEVIES ARE ENACTED SOME LOOPHOLES ARE CLOSED AND THE RATES ON UPPERINCOME TAXPAYERS ARE BOOSTED A LITTLE MORE THAT STILL WOULD RAISE LESS THAN 100 BILLION OVER FIVE YEARS THUS THE MOST APPETIZING TARGET CORPORATE TAXES POLLS SHOW MOST AMERICANS STILL THINK CORPORATIONS DON'T PAY ENOUGH TAXES AND CORPORATE TAXES WOULD BE AN INEVITABLE TARGET ON THE DOMESTIC SPENDING SIDE ASSUME MEDICARE AND MEDICAID ARE WHACKED 100 BILLION OR ALMOST DOUBLE THE POLITICALLY AGONIZING CUTBACKS THAT CONGRESS VOTED LAST YEAR THEN START ELIMINATING ENTIRE PROGRAMS KILL OUTRIGHT EVERY HIGHWAY DEMONSTRATION PROJECT THE SPACE STATION AMTRAK SUBSIDIES AID TO PUBLIC BROADCASTING LEGAL SERVICES FUNDING FOR THE 100000 NEW COPS AND ALL FEDERAL SUPPORT FOR THE ARTS LIKEWISE DO AWAY WITH ENTIRE AGENCIES THE COMMERCE DEPARTMENT THE ARMY CORPS OF ENGINEERS THE GENERAL SERVICES ADMINISTRATION THE INTERSTATE COMMERCE COMMISSION AND THE SMALL BUSINESS ADMINISTRATION FOR GOOD MEASURE CUT CONGRESS'S BUDGET BY A THIRD AND ELIMINATE HALF OF THE FOREIGN AID TO THE TWO BIGGEST RECIPIENTS ISRAEL AND EGYPT ALTOGETHER INCLUDING HEALTH THOSE CUTBACKS STILL WOULD TOTAL LESS THAN 200 BILLION OVER FIVE YEARS TO GET THE 100 BILLIONPLUS MORE THERE'S ONLY ONE TARGET BIG ENOUGH SOCIAL SECURITY IF THESE BENEFIT INCREASES ARE LIMITED TO THE ANNUAL COST OF LIVING RISE MINUS 2 SOMETHING POLITICIANS INSIST IS POLITICALLY PERILOUS WE'RE STILL 20 BILLION SHORT OF THE GOAL THE DEFENSE BUDGET WOULD HAVE TO BE SLASHED AN ADDITIONAL 15 THE PENTAGON NOW IS FORMULATING WHAT THAT WOULD MEAN AND ONE TOP DEFENSE DEPARTMENT OFFICIAL LAID OUT THE LIKELY CONSEQUENCES THE PROJECTED 500000 ARMY FORCE LEVEL WOULD BE CUT TO 400000 MARINES WOULD DROP FROM A PROJECTED 174000 TO ABOUT 145000 AND THE RESERVES WOULD BE REDUCED BY A THIRD MOST MODERNIZATION EFFORTS WOULD BE ABANDONED AND THE 8 BILLION A YEAR THE PENTAGON ENVISIONS SPENDING ON THE NEW TECHNOLOGIES WOULD BE SCALED BACK TO 5 BILLION THE BOTTOM LINE THE STRATEGY OF THE JOINT CHIEFS OF STAFF AND PRESIDENT CLINTON THAT THE US BE PREPARED TO FIGHT IN TWO SIMULTANEOUS REGIONAL CONFLICTS WOULD HAVE TO BE SCRAPPED TO BATTLE THE MEASURE THE WHITE HOUSE HAS DEVISED A SERIES OF BUDGETBALANCING OPTIONS AND SPELLED OUT THE SPECIFIC POLICY IMPLICATIONS INCLUDING THE EFFECTS ON EACH STATE IN TEXAS FOR EXAMPLE IF THE REDUCTIONS CAME FROM AN ACROSSTHEBOARD SPENDING CUT BY 1999 THE AVERAGE SOCIAL SECURITY RECIPIENT WOULD GET 946 LESS A YEAR THE STATE WOULD LOSE 18 BILLION IN DEFENSE SPENDING AND ALMOST 4 BILLION IN REDUCED FEDERAL AID FOR DOMESTIC PROJECTS SCARE TACTICS PROPONENTS WILL SCREAM YEAH BUT IT MAKES THE POINT THAT THIS IS REAL STUFF THOSE WHO WANT TO AVOID HIGHER TAXES SHOULD SAY WHERE THEY'D FIND AN ADDED 150 BILLION IN SPENDING CUTS OR THOSE WHO WANT TO EXEMPT DEFENSE SHOULD SPECIFY SIMILAR SAVINGS IN MORE TAXES OR DOMESTIC OUTLAYS TO SIMPLIFY MATTERS ASK LAWMAKERS TO BALANCE ONE BUDGET FISCAL 2000 A GOOD BENCHMARK IS THE PROPOSAL BY THE CONCORD COALITION THE PAUL TSONGAS AND WARREN RUDMANLED EFFORT TO IMPOSE FISCAL DISCIPLINE THAT WOULD LEAD TO MORE THAN 200 BILLION OF DEFICIT REDUCTION THAT YEAR THEY WOULD CLOSE UNDERUSED VETERANS ADMINISTRATION HOSPITALS END AMTRAK SUBSIDIES ELIMINATE THE SPACE STATION REDUCE THE LEGISLATIVE BRANCH'S BUDGET BY 15 AND CUT FARM PAYMENTS AMONG OTHER CUTBACKS THAT'S LESS THAN 40 BILLION HOWEVER SO THEN THE CONCORD COALITION GETS PRETTY DRACONIAN MEANS TESTING ALL ENTITLEMENTS INCLUDING SOCIAL SECURITY RAISING THE RETIREMENT AGE TO 68 ENACTING A 50CENTAGALLON GASOLINE TAX SLAPPING ADDED TAXES ON BEER AND BOOZE AND SHARPLY CURTAILING THE HOME MORTGAGE DEDUCTION ASK THOSE BUDGETBALANCING POLITICIANS IF THEY SUPPORT THIS AGENDA SUPPLYSIDER JACK KEMP OPPOSES THE AMENDMENT BECAUSE HE THINKS IT'S A TRAP TO RAISE TAXES THE HEAD OF THE JOINT CHIEFS OF STAFF GEN JOHN SHALIKASHVILI OPPOSES IT OUT OF FEAR IT WOULD DECIMATE NATIONAL SECURITY AND ROBERT GREENSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES WORRIES IT WOULD UNDULY HURT POOR PEOPLE THEY ALL COULD BE RIGHT THERE'S LITTLE DOUBT THAT IN SEVERAL YEARS TOUGHER DEFICITREDUCTION MEASURES WILL BE NECESSARY INCLUDING CRACKING DOWN ON THE GROWTH OF ENTITLEMENT SPENDING AND GETTING MORE REVENUES HEALTH CARE LEGISLATION THE REPUBLICAN PROPOSALS AS WELL AS THE ADMINISTRATION'S ONLY ADDS TO THIS INEVITABILITY BUT THOSE ISSUES OUGHT TO BE DEBATED NOT HIDDEN UNDER THE CLOAK OF AN AMENDMENT THAT BALANCES THE BUDGET BUT DOESN'T TELL PEOPLE HOW IT WILL BE DONE TWO DECADES AGO A VETERAN HOUSE MEMBER JAMES BURKE EXPLAINED HOW HE STAYED IN CONGRESS BY VOTING FOR EVERY SPENDING BILL AND AGAINST EVERY TAX HIKE AND DEBTCEILING INCREASE WHEN A NAIVE YOUNG REPORTER SUGGESTED THAT THIS WAS A PRESCRIPTION FOR CHAOS JIMMY BURKE PUFFED ON HIS CIGAR SMILED AND SAID YOU THINK THIS PLACE IS ON THE LEVEL IN A COUPLE OF WEEKS THOSE VOTING TO AMEND THE CONSTITUTION WITH THIS SHAM WILL IN THE WORDS OF JIMMY BURKE SHOW THEY TOO KNOW THE PLACE ISN'T ON THE LEVEL ZERO DEFICIT PLAN SAVINGS WOULD INCLUDE 9402100112 940210 INTERNATIONAL BRAZIL'S INFLATION RATE RIO DE JANEIRO THE ANNUAL RATE OF INFLATION IN BRAZIL'S MAJOR CITIES ROSE 21 PERCENTAGE POINTS TO 413 BETWEEN DEC 30 AND JAN 28 ACCORDING TO A GOVERNMENT REPORT RELEASED YESTERDAY THE RATE WAS UP FROM THE 392 IN THE 11 LARGEST CITIES FROM DEC 14 TO JAN 14 THE GOVERNMENT'S NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS SAID BY CONTRAST THE RATE WAS 28 A YEAR EARLIER ACCORDING TO ECONOMIC DATA RELEASED AT THE TIME BRAZIL HAS NO SINGLE INFLATION INDEX THE GOVERNMENT USES SEVERAL OFFICIAL AND PRIVATE INDEXES TO CALCULATE THE COST OF LIVING 9402100111 940210 INTERNATIONAL JAPAN AIRLINES MAY SEEK AID TOKYO JAPAN AIRLINES CO IS STUDYING THE GOVERNMENT'S OFFICIAL LABORADJUSTMENT FUND AS AN OPTION IN ITS LARGESCALE COSTCUTTING PLAN A COMPANY SPOKESMAN SAID HOWEVER IT HASN'T DECIDED WHETHER TO APPLY FOR THE SUBSIDY WHICH IS PAID BY THE GOVERNMENT TO COVER PART OF THE LABOR COSTS IN STRUGGLING INDUSTRIES HE SAID HE DENIED A JAPANESE NEWSPAPER REPORT THAT JAL ALREADY HAS NOTIFIED ITS LABOR UNION OF ITS INTENTION TO APPLY FOR THE FUND 9402100110 940210 WRONG WAY TO TALK ABOUT TRADE BY CHARLES WOLF JR THIS YEAR'S TRADE NEGOTIATIONS BETWEEN THE US AND JAPAN SEEM LIKELY TO RESULT YET AGAIN IN EITHER AN IMPASSE OR A FACESAVING AGREEMENT IT WILL PROBABLY BE SUFFICIENTLY AMBIGUOUS TO ENABLE BOTH PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON TO EXPRESS SATISFACTION WITH THE OUTCOME AT THEIR SUMMIT MEETING IN WASHINGTON ON FRIDAY THE MODEST STIMULUS PACKAGE THAT MR HOSOKAWA'S COALITION GOVERNMENT HAS JUST ENDORSED WILL CONTRIBUTE TO THIS RESULT ACCORDING TO THE RITUAL OF PREVIOUS USJAPAN NEGOTIATIONS THE AMERICANS VIGOROUSLY ASSERT THAT THE FUNDAMENTAL REASON FOR JAPAN'S LARGE TRADE SURPLUS WITH THE US IS JAPAN'S CLOSED MARKETS AND THE OBVIOUS REMEDY IS TO OPEN THEM BY SPECIFIC MEASURES WITH PRECISE TARGETS ATTACHED TO THEM THE JAPANESE NEGOTIATORS CONTEND NO LESS VIGOROUSLY THAT THE REAL CULPRIT IS THE LARGE US BUDGET DEFICIT AND THE OBVIOUS REMEDY IS TO ELIMINATE IT BY RAISING TAXES AND REDUCING SPENDING IN FACT NEITHER SIDE OF THE DEBATE HAS MUCH GOING FOR IT THE AMERICAN CONTENTION IS ACCURATE BUT LARGELY IRRELEVANT WHILE THAT OF THE JAPANESE IS SIMPLY WRONG MOREOVER JAPAN HAS A STRIKING OPPORTUNITY TO DEPART FROM THE STANDARD RITUAL BY A SERIES OF INNOVATIVE ECONOMIC POLICIES THAT WOULD DO WELL AT HOME WHILE DOING GOOD ABROAD REVERSING JAPAN'S PROTRACTED RECESSION AND REDUCING ITS CHRONIC EXPORT SURPLUSES WITH THE US AND THE REST OF THE WORLD THE AMERICAN STANCE IN THE STANDARD RITUAL IS IRRELEVANT BECAUSE WHILE JAPAN'S DOMESTIC MARKETS ARE DEMONSTRABLY LESS PERMEABLE THAN MARKETS ELSEWHERE THE US CURRENTACCOUNT DEFICIT COVERING BOTH MERCHANDISE AND SERVICES TRADE WITH JAPAN AS WELL AS WITH THE REST OF THE WORLD DOES NOT RESULT FROM THAT FACT IT RESULTS FROM AND IS EQUAL TO THE AMOUNT BY WHICH US GROSS DOMESTIC SAVING FALLS SHORT OF US GROSS DOMESTIC INVESTMENT THUS THE GLOBAL US CURRENTACCOUNT DEFICIT ABOUT 90 BILLION IN 1993 MORE THAN HALF OF WHICH WAS WITH JAPAN WON'T BE SIGNIFICANTLY HELPED BY THE OPENING OF JAPAN'S MARKETS ALTHOUGH SUCH A MOVE IS LONG OVERDUE THE JAPANESE POSITION HAS MORE SERIOUS FLAWS THAN THE AMERICAN ONE THE FIRST FLAW IS EMPIRICAL THE LINK THAT THE JAPANESE ASSERT BETWEEN THE TWO DEFICITS DOESN'T EXIST AS THE ACCOMPANYING GRAPH SHOWS SINCE THE MID1980S THE US BUDGET DEFICIT AND CURRENTACCOUNT DEFICIT HAVE SHOWN NO CORRELATION THEY MOVED IN OPPOSITE DIRECTIONS MORE OFTEN FIVE YEARS THAN IN THE SAME DIRECTION TWO YEARS ALTHOUGH THE TWO DEFICITS HAVE SOMETIMES BEEN REFERRED TO AS TWINS THEY ARE AT MOST THIRD COUSINS SECOND THE JAPANESE REFRAIN IS WEAK ON THEORETICAL GROUNDS ESTABLISHING A CAUSAL LINK BETWEEN BUDGET DEFICITS AND CURRENTACCOUNT DEFICITS INVOLVES A QUESTIONABLE CHAIN OF REASONING ON THE ONE HAND GOVERNMENT BORROWING TO FINANCE BUDGET DEFICITS IS SUPPOSED TO DEPLETE PRIVATE SAVINGS BY A CORRESPONDING AMOUNT THEREBY INCREASING THE IMBALANCE BETWEEN DOMESTIC SAVINGS AND INVESTMENT AND HENCE RAISING THE US CURRENTACCOUNT DEFICIT ON THE OTHER HAND GOVERNMENT BORROWING ALSO RAISES INTEREST RATES AND CROWDS OUT PRIVATE INVESTMENT THEREBY REDUCING THE IMBALANCE BETWEEN SAVINGS AND INVESTMENT AND PRESUMABLY LOWERING THE CURRENTACCOUNT DEFICIT HOW THESE COMPLEX AND OFFSETTING EFFECTS NET OUT IS NOT WELL UNDERSTOOD AND DOES NOT WARRANT THE STANDARD ADMONITION IMPARTED BY THE JAPANESE TO THE AMERICANS THAT CUTTING THE US BUDGET DEFICIT WOULD CURE THE TRADE DEFICIT THIRD THE JAPANESE EMPHASIS ON THE CAUSAL EFFECT OF THE US BUDGET DEFICIT CARRIES WITH IT MISTAKEN IMPLICATIONS FOR POLICY THE USUAL POLICY INFERENCE IS THAT ELIMINATING OR AT LEAST NARROWING THE BUDGET DEFICIT WILL AFFECT THE CURRENTACCOUNT IMBALANCE BY AN EQUAL AMOUNT BUT THIS INFERENCE IS WRONG THE US CURRENTACCOUNT DEFICIT CAN BE REDUCED ONLY IF GROSS SAVING IN THE US IS INCREASED OR GROSS INVESTMENT IS DECREASED OR SAVING RISES BY MORE THAN INVESTMENT SO THE GAP BETWEEN THEM NARROWS IF THE BUDGET DEFICIT IS REDUCED BY FISCAL POLICIES THAT INCREASE TAXES ON HIGH SAVERS THERE WILL BE LITTLE OR NO EFFECT ON THE CURRENTACCOUNT DEFICIT BECAUSE REVENUES RAISED FROM THESE SOURCES WILL SIMPLY REDUCE THE SAVINGS THAT WOULD OTHERWISE HAVE OCCURRED THE SAVINGSINVESTMENT IMBALANCE WON'T BE CHANGED AND THE CURRENTACCOUNT DEFICIT WON'T BE REDUCED FINALLY IT IS WORTH REMINDING JAPANESE POLICY MAKERS AND THE INFLUENTIAL BUREAUCRATS IN THE MINISTRIES OF FINANCE FOREIGN AFFAIRS AND TRADE AND INDUSTRY THAT THE US SAVINGSINVESTMENT IMBALANCE IS NEITHER MORE NOR LESS CULPABLE THAN IS JAPAN'S CORRESPONDING BUT OPPOSITE IMBALANCE THE EXCESS OF JAPAN'S DOMESTIC SAVINGS OVER ITS DOMESTIC INVESTMENT IS THE MIRROR IMAGE OF THE US SHORTFALL OF SAVINGS OVER DOMESTIC INVESTMENT AND THIS EXCESS IS THE FUNDAMENTAL SOURCE OF JAPAN'S CHRONIC EXPORT SURPLUSES THIS KEY FACT PROVIDES A BASIS FOR THE JAPANESE TO DEPART FROM THE ESTABLISHED RITUAL AND INSTEAD INITIATE ECONOMIC POLICIES THAT WOULD REDRESS JAPAN'S RECESSION AND MITIGATE ITS EXPORT SURPLUSES WITH THE REST OF THE WORLD THE APPROPRIATE SET OF REMEDIAL POLICIES WOULD INCLUDE 1 LOWERING JAPAN'S MARGINAL INCOMETAX RATES THE HIGHEST INDIVIDUAL RATE IS 50 THE HIGHEST CORPORATE RATE 395 2 ELIMINATING THE EXISTING 3 NATIONAL CONSUMPTION TAX EXPORT SALES ALWAYS HAVE BEEN EXEMPTED FROM THIS TAX AND 3 REMOVING THE SUBSTANTIAL TAX EXEMPTION OF INCOME FROM PRIVATE SAVINGS FROM THE STANDPOINT OF JAPAN'S NARROWLY FOCUSED MINISTRY OF FINANCE THE FIRST AND SECOND OF THESE MEASURES MIGHT IN THE SHORT RUN REDUCE REVENUES BUT THE THIRD MEASURE WOULD INCREASE THEM THEREBY MAKING THE PACKAGE MORE PALATABLE IN COMBINATION THE MEASURES WOULD BOOST DOMESTIC SPENDING REDUCE SAVINGS AND THEREBY DIMINISH THE IMBALANCE BETWEEN SAVING AND INVESTMENT THAT IS RESPONSIBLE FOR JAPAN'S CHRONIC EXPORT SURPLUSES MR HOSOKAWA'S GOVERNMENT IS EVIDENTLY NOW PREPARED TO EMBRACE THE FIRST OF THESE MEASURES BUT ONLY TO A VERY LIMITED EXTENT BECAUSE THE INCOMETAX REDUCTION WOULD BE ONLY FOR A SINGLE YEAR AND THE SALES TAX IS TO BE MAINTAINED AND PERHAPS LATER INCREASED THE EFFECTS ARE LIKELY TO BE MINIMAL IF INSTEAD JAPAN WERE TO MAKE A MAJOR DEPARTURE FROM THE RITUAL OF THE PAST ITS RECESSION WOULD BE REVERSED AND ITS IMPORTS FROM THE US AND THE REST OF THE WORLD WOULD INCREASE AS FOR THE US NEGOTIATORS WOULD BE WELLADVISED TO EMPHASIZE SUCH IMPROVEMENTS IN JAPAN'S MACROECONOMIC POLICIES RATHER THAN TRY TO OPEN JAPAN'S PROTECTED MARKETS BY SEEKING TO MANAGE THEM MR WOLF IS DEAN OF THE RAND GRADUATE SCHOOL IN SANTA MONICA CALIF AND DIRECTOR OF INTERNATIONAL ECONOMIC RESEARCH AT ITS NATIONAL DEFENSE RESEARCH INSTITUTE 9402100109 940210 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY MATH TEST BUDGET DEFENSE MUST ADD UP BY ARNOLD KANTER WILLIAM PERRY UNANIMOUSLY CONFIRMED BY THE SENATE LAST WEEK TO SUCCEED LES ASPIN AS SECRETARY OF DEFENSE GOES BACK TO CAPITOL HILL THIS WEEK TO TESTIFY IN SUPPORT OF THE PRESIDENT'S DEFENSE PROGRAM AND BUDGET ONE MIGHT THINK THAT THESE HEARINGS WILL BE UNEVENTFUL AFTER ALL THE 50 BILLION DEFENSE BUDGET GAP THAT MR ASPIN DISCOVERED LATE LAST YEAR HAS EVIDENTLY ALL BUT EVAPORATED MR PERRY BRINGS THE BENEFITS OF HIS IMPRESSIVE EXPERIENCE TO THE JOB AND HE TAKES OVER FROM MR ASPIN AFTER HAVING BEEN ASSURED IN THE PRESIDENT'S STATE OF THE UNION ADDRESS THAT HE WILL GET THE RESOURCES HE NEEDS TO DO THE JOB PROBLEM SOLVED RIGHT WRONG WE ARE STILL LEFT WITH THREE HARD QUESTIONS IS THE DEFENSE STRATEGY THE RIGHT ONE TO PROTECT AMERICAN INTERESTS WILL THE PRESIDENT'S DEFENSE BUDGET BE ENOUGH TO PAY FOR IT AND WILL MR CLINTON REALLY FIGHT FOR APPROVAL OF HIS BUDGET OR WILL HE ACQUIESCE IN CONGRESSIONAL DEFENSE BUDGET CUTS TO HELP PAY FOR HIS DOMESTIC PROGRAMS AND DEFICIT REDUCTION THE HEARINGS THIS WEEK ARE THE PLACE TO START LOOKING FOR ANSWERS THE 50 BILLION BUDGET GAP SOMEHOW SHRANK TO ABOUT 30 BILLION FOLLOWING NEGOTIATIONS BETWEEN THE PENTAGON AND OFFICE OF MANAGEMENT AND BUDGET THE GAP WAS REDUCED BY AN ADDITIONAL 10 BILLION WHEN MR CLINTON AGREED TO ADD THAT AMOUNT TO THE PENTAGON'S FIVEYEAR SPENDING PLAN MR PERRY HAS SAID HE WILL SOMEHOW BE ABLE TO MAKE UP THE REMAINING DIFFERENCE AFTER ALL WE ARE ONLY TALKING ABOUT FINDING AN ADDITIONAL 4 BILLION SAVINGS IN EACH OF THE NEXT FIVE YEARS OR ARE WE THE DEBATE IS ABOUT MORE THAN THAT IT IS ABOUT AMERICA'S PLACE IN THE POSTCOLD WAR WORLD TROUBLE SPOTS AND CONFLICTS AROUND THE WORLD INCLUDING NORTH KOREA RUSSIA AND THE PERSIAN GULF REMIND US THAT THE END OF THE COLD WAR DIDN'T SPELL THE END OF THREATS TO AMERICAN INTERESTS THE QUESTION IS WHETHER WE HAVE THE RIGHT DEFENSE STRATEGY TO DEFEND OUR INTERESTS IT ALSO IS A DEBATE ABOUT HOW WE RECONCILE THE COMPETING DEMANDS OF AMERICAN FOREIGNPOLICY LEADERSHIP DOMESTIC INITIATIVES AND DEFICIT REDUCTION WHAT WE ARE PREPARED TO PAY FOR AND WHAT WE WILL HAVE TO SHORTCHANGE THE BOTTOMUP REVIEW YIELDED A DEFENSE STRATEGY THAT PROVIDES THE CLINTON ADMINISTRATION'S ANSWERS IT CLOSELY RESEMBLES THE POSTCOLD WAR STRATEGY FORMULATED BY THE BUSH ADMINISTRATION ENSURING THE ABILITY TO FIGHT AND WIN TWO NEARLY SIMULTANEOUS CONFLICTS IN THE PERSIAN GULF AND ON THE KOREAN PENINSULA THE BOTTOMUP REVIEW RESULTED IN A FORCE STRUCTURE THAT IS A SOMEWHAT SMALLER VERSION OF THE BUSH ADMINISTRATION'S BASE FORCE BUT IT PROMISED TO DO NEARLY AS MUCH AS ITS PREDECESSOR WHILE SPENDING ABOUT 100 BILLION LESS OVER FIVE YEARS TO ACHIEVE THIS MESSRS ASPIN AND PERRY CUT JUST ABOUT EVERYTHING THERE WAS TO CUT AND PERHAPS MORE WHILE PRESERVING THE FORCE THEY SAID WAS NECESSARY TO EXECUTE THE STRATEGY THEY PROPOSED ANY ADDITIONAL SAVINGS WOULD HAVE TO COME OUT OF FORCE STRUCTURE UNDERMINING THE STRATEGY OR OUT OF READINESS RESULTING IN A HOLLOW FORCE SINCE THE BUSH DEFENSE SPENDING PLAN ITSELF MAY HAVE BEEN SERIOUSLY UNDERFUNDED THE CLINTON PLAN TO DO NEARLY AS MUCH WITH FEWER RESOURCES STRUCK MANY OBSERVERS AS UNREALISTIC AND THAT WAS BEFORE THE 50 BILLION GAP MR PERRY THUS WILL BE PRESENTING A DEFENSE STRATEGY THAT IS DESIGNED TO SUPPORT ACTIVE AMERICAN ENGAGEMENT IN THE WORLD A DEFENSE PROGRAM THAT IS CLOSE TO THE MARGIN OF BEING ABLE TO EXECUTE THE STRATEGY AND A DEFENSE BUDGET THAT PROBABLY CAN'T PAY FOR THE PROGRAM HE ALSO CONFRONTS A DOMESTIC POLITICAL ENVIRONMENT IN WHICH THERE IS LITTLE SUPPORT FOR MAINTAINING CURRENT LEVELS OF DEFENSE SPENDING BUT ONE OBVIOUS RESPONSE TO SCALE BACK OUR DEFENSE STRATEGY BECAUSE WE CANNOT OR WILL NOT PAY FOR IT WOULD HAVE PROFOUND CONSEQUENCES FOR AMERICAN INTERESTS IT WOULD SACRIFICE THE UNIQUE LEADERSHIP ROLE WE PLAY IN THE POSTCOLD WAR WORLD AND THUS THE OPPORTUNITY TO SHAPE AN INTERNATIONAL ORDER THAT MIGHT AVOID THE KINDS OF CONFLICTS THAT HAVE WRACKED THE 20TH CENTURY IT WOULD ALSO REQUIRE US TO RELY MORE ON FRIENDS AND ALLIES TO HELP DEFEND US INTERESTS WE NO LONGER CAN PROTECT OURSELVES AT PRECISELY THE TIME WHEN OUR WEAKENED LEADERSHIP INCREASES THE RISKS THAT FRIENDS AND ALLIES WILL BE UNWILLING TO SHOULDER THIS BURDEN BUT EVEN WORSE THAN A DECISION TO SCALE BACK OUR DEFENSE STRATEGY WOULD BE TO PRETEND THAT THE PROBLEM DOES NOT EXIST THAT THERE IS NO MISMATCH BETWEEN STRATEGY AND RESOURCES MAINTAINING THAT ILLUSION WILL RESULT IN HOLLOW FORCES THAT ARE NOT READY TO FIGHT WHOSE INADEQUACIES MAY TEMPT WOULDBE AGGRESSORS OVER THE PAST YEAR MR PERRY HAS STRUGGLED WITH THESE CHALLENGES AS DEPUTY SECRETARY OF DEFENSE NO ONE IS IN A BETTER POSITION TO CONVINCE CONGRESS AND THE AMERICAN PEOPLE THAT THE BOTTOMUP REVIEW CORRECTLY IDENTIFIED THE STRATEGY AND FORCES NEEDED TO DEFEND US INTERESTS LIKEWISE NO ONE IS BETTER QUALIFIED TO EXPLAIN HOW MUCH DEFENSE SPENDING SUCH A STRATEGY REQUIRES BUT ONLY THE PRESIDENT CAN SUCCESSFULLY FIGHT TO WIN CONGRESSIONAL APPROVAL OF HIS OWN DEFENSE BUDGET ONE CAN ONLY HOPE THAT THE PRESIDENT WITH MR PERRY WILL REASSURE THE AMERICAN PUBLIC AND OUR ALLIES THAT THE US REMAINS COMMITTED TO A STRATEGY A DEFENSE PROGRAM AND A BUDGET THAT WILL PROTECT OUR INTERESTS AND ALLOW US TO PLAY OUR UNIQUE ROLE IN THE POSTCOLD WAR WORLD MR KANTER AN ASSOCIATE AT THE FORUM FOR INTERNATIONAL POLICY IN WASHINGTON SERVED AS SPECIAL ASSISTANT TO THE PRESIDENT FOR DEFENSE POLICY AND ARMS CONTROL FROM 1989 TO 1991 9402100108 940210 LETTERS TO THE EDITOR STAND BY YOUR REAL WOMAN AMITY SHLAES'S JAN 18 EDITORIALPAGE ESSAY DEAR NAOMI WOMEN OPINIONS AND THE PRESS SUCCESSFULLY ANSWERED CHARGES BY NAOMI WOLF AND THE WOMANASVICTIM FEMINISTS THAT MEN ALONE CONTROL THE WORLD OF OPINION MAKING IT WAS STRAIGHT TO THE POINT AND FUN TO READ OBJECTIVE CRITICS OF THE MEDIA MUST ADMIT THAT THE VOICES OF WOMEN WHO SPEAK WITH AUTHORITY ON A RANGE OF ISSUES ARE NOT ONLY HEARD BUT GROWING IN NUMBER MY ONLY COMPLAINT IS THAT MS SHLAES OVERLOOKED WHAT IS HAPPENING WITH WOMEN AS OPINION MAKERS DOWN HERE IN TEXAS AT THE DALLAS MORNING NEWS FOR EXAMPLE A NEWSPAPER WITH ENOUGH CLOUT THAT EVEN THE FABLED JAMES CARVILLE CREDITS IT AS ONE OF THE THREE DAILIES HE READ RELIGIOUSLY DURING THE 1992 PRESIDENTIAL CAMPAIGN BOTH THE EDITORIALPAGE EDITOR AND THE OPED EDITOR ARE WOMEN EDITORIALPAGE EDITOR RENA PEDERSON IS ALSO A VICE PRESIDENT OF THE NEWSPAPER AND WRITES A COLUMN WITH AN INTELLECTUAL PERSPECTIVE ON ISSUES FROM NAFTA TO SCOUTING CAROLYN BARTA THE OPED EDITOR IS A POLITICAL COLUMNIST AND COMMENTATOR WITH A SHARP AND EXPERIENCED EYE WHILE I ADMIRE THE WORK OF THESE TWO IMPORTANT TEXAS OPINION MAKERS I SOMETIMES FIND MYSELF AT ODDS WITH THEM HAPPILY ALWAYS DUE TO THEIR OPINIONS NOT TO THEIR PRECISE NO UTERUS WRITING STYLE I SUPPOSE NAOMI WOLF'S CHARGE OF NO UTERUS WRITING FALLS IN THE SAME CATEGORY AS GLORIA STEINEM'S ACCUSATION THAT THE US SENATOR FROM TEXAS KAY BAILEY HUTCHISON IS A FEMALE IMPERSONATOR OH WELL SO WHAT I SUSPECT THAT NEITHER NAOMI NOR GLORIA WOULD UNDERSTAND TEXAS OR ITS WOMEN BUT THEY CAN'T DENY THAT EXCITING THINGS ARE HAPPENING HERE FOR AND WITH WOMEN OUR GOVERNOR FOR INSTANCE IS ANN RICHARDS ALMOST ALL OF THE 12 STATEWIDE OFFICES UP IN THIS YEAR'S ELECTION HAVE WOMEN CANDIDATES AND MOST ARE REPUBLICANS TO THE BEST OF MY KNOWLEDGE ALL OF THEM GET THEIR HAIR DONE AND WEAR LIPSTICK FREE FROM GUILT JUST WANTED TO SAY HOW MUCH I AGREED WITH MS SHLAES'S DEAR NAOMI COLUMN AND TO THANK HER FOR SAYING SOME OF THE THINGS I WANTED TO SAY IF I HADN'T BEEN TOO LAZY TO SIT DOWN AND WRITE A RESPONSE TO THE WOLF ARTICLE I WAS PARTICULARLY HAPPY TO SEE THE REBUTTAL OF MS WOLF'S SILLY DISMISSAL OF JEANE KIRKPATRICK BECAUSE MS KIRKPATRICK WROTE IN AN OBJECTIVE NO UTERUS' STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE FEMALE BODY' THAT IS PROBABLY THE CATEGORY SHE WOULD HAVE RESERVED FOR ME AS WELL MS CHRISTIAN WAS A 1981 PULITZER PRIZE WINNER FOR COVERAGE OF CENTRAL AMERICA MS SHLAES'S PIECE ON NAOMI WOLF WAS REALLY TOO MUCH FOR OUR BUDDING CONSCIOUSNESSES TO BEAR WE EXPECT YOUR EDITORIAL PAGE TO DO BETTER THAN RECYCLE STEREOTYPES SUCH AS WOMEN ARE CIVILIZERS THEY CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON CROSSFIRE' BECAUSE THEY FIND THEM UNDIGNIFIED DOES THIS MEAN WOMEN ARE TOO FRAGILE AND HIGHMINDED FOR DAILY BUSINESS MS SHLAES THEN CONTINUES TO GENERALIZE ABOUT THE RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS IF THIS WERE TRUE THEN EDUCATION FOR WOMEN WOULD BE WASTED ASSUMING WOMEN ARE RATIONAL ECONOMIC DECISION MAKERS NONE OF US WOULD HAVE PAID 80000 TO TALK ABOUT SEX WEIGHT AND VICTIMIZATION UNFORTUNATELY THIS IS ONE OF THOSE STEREOTYPES THAT DEMEANS ITS USER AND SAYS NOTHING OF SUBSTANCE IF THESE STATEMENTS HAD BEEN MADE ABOUT JEWISHAMERICANS AFRICANAMERICANS OR ANOTHER MINORITY YOU WOULD HAVE SEEN THEM FOR WHAT THEY ARE MERE CARICATURES OF A DIVERSE GROUP OF PEOPLE MS SHLAES ALSO SAYS PEOPLE DO NOT CHECK OPED PIECES TO SEE THE GENDER OF THE WRITER WITH ALL DUE RESPECT IF THAT WERE TRUE NONE OF THIS WOULD BE AN ISSUE WE OURSELVES ALWAYS CHECK THE GENDER OF THE WRITER ALONG WITH THE WRITER'S PROFESSIONAL BACKGROUND NOT TO SEE IF THE PAPER IS MEETING A QUOTA OF WHATEVER GROUP NATURALLY OUR LIVES ARE MUCH TOO BUSY TALKING ABOUT SEX AND WEIGHT FOR THAT BUT SIMPLY TO EVALUATE IN THE ROUGHEST POSSIBLE WAY WHAT SPECIAL INSIGHTS THE WRITER MAY BE BRINGING TO THAT PIECE IN THE SAME WAY PROBABLY EVERY READER OF THIS LETTER HAS CHECKED OR WILL CHECK TO SEE THE GENDER OF THE WRITER OF THIS LETTER AFTER ALL THE READER WHISPERS TO HIMSELF ONLY A WOMAN WOULD OBJECT TO BEING CALLED TOO HIGHMINDED FOR SOMETHING AS EVIL AS OPINING I NOTE THAT IF YOU TAKE A HANDFUL OF OUTSTANDING FEMALE COLUMNISTS SUCH AS MEG GREENFIELD KAREN ELLIOTT HOUSE GEORGETTE GEYER FLORA LEWIS JEANE KIRKPATRICK MS DREW DOROTHY RABINOWITZ YOURSELF COKIE ROBERTS JANE KRAMER FROM PARIS THOSE TWO NPR LEGAL SMARTIES AND ONE OR TWO OTHERS ALL OF WHOM WERE WRITING AT THE SAME TIME A FEW YEARS AGO YOU COULD NOT POSSIBLY MATCH THEM IN NUMBERS ON THE MALE SIDE IN TERMS OF QUALITY SENSE TOUGHNESS OF MIND ETC ANNE O'HARE MCCORMICK OF THE TIMES AND DOROTHY THOMPSON OF THE HERALD TRIBUNE UNINHIBITED BY UTERUS IN WRITING ON FOREIGN AFFAIRS A HALFCENTURY AGO ATTAINED A STATUS STILL UNEQUALED BY WOMEN JOURNALISTS IN THAT FIELD 9402100107 940210 ABREAST OF THE MARKET BLUE CHIPS LEAD MARKET HIGHER AIDED BY BONDS PROGRAM BUYING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BLUECHIP ISSUES LED THE STOCK MARKET HIGHER BOOSTED BY REBOUNDING BOND PRICES AND PROGRAM BUYING THE DOW JONES INDUSTRIAL AVERAGE ROSE 2589 POINTS OR 066 TO 393192 SINCE THE FEDERAL RESERVE ANNOUNCED FRIDAY THAT IT WILL TIGHTEN CREDIT CONDITIONS THE INDUSTRIALS HAVE TAKEN BACK ABOUT 60 POINTS OF THE 96 LOST THAT DAY AMONG BIG CYCLICALS ALLIEDSIGNAL ROSE 2 1/2 TO 79 7/8 PROCTER & GAMBLE GAINED 2 1/4 TO 59 1/4 AND MCDONALD'S ADDED 1 1/4 TO 60 3/8 BROADER INDEXES ALSO ROSE THE STANDARD & POOR'S 500STOCK INDEX MOVED UP 172 POINTS OR 037 TO 47277 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 094 POINTS OR 036 TO 26290 BIG BOARD ADVANCERS LED DECLINERS 1289 TO 850 ON VOLUME OF 332600000 SHARES UP FROM 318040000 SHARES ON TUESDAY THE AVERAGE PRICE PER SHARE ROSE 12 CENTS TWO BOUTS OF FUTURESRELATED PROGRAMS ONE YESTERDAY MORNING AND ANOTHER RIGHT BEFORE THE CLOSE AIDED THE ADVANCE IN THE EQUITY MARKET THE NASDAQ COMPOSITE INDEX ROSE WITH THE HELP OF FIRM TECHNOLOGY ISSUES IT JUMPED 383 POINTS OR 049 TO 78653 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE FOR A SECOND STRAIGHT DAY GAINING 291 OR 061 TO 48059 A BETTERTHANEXPECTED JANUARY BOOKTOBILL REPORT RELEASED AFTER THE MARKET CLOSE TUESDAY BOOSTED SOME CHIP MAKERS THE SEMICONDUCTOR INDUSTRY REPORT SHOWS THE RATIO ROSE TO 107 LAST MONTH FROM 104 IN DECEMBER THAT MEANS THAT FOR THE LATEST MONTH THE INDUSTRY RECEIVED 107 OF NEW ORDERS FOR EVERY 100 OF CHIPS SHIPPED AMONG CHIP STOCKS ATMEL NASDAQ ROSE 1 7/8 TO 42 3/8 INTEL NASDAQ INCHED UP 3/8 TO 63 7/8 AND ANALOG DEVICES INC GAINED 7/8 TO 27 3/8 ALSO IN THE TECHNOLOGY GROUP MICROSOFT NASDAQ REDMOND WASH ROSE 7/8 TO 79 5/8 WILLIAM GATES THE COMPANY'S CHAIRMAN SAID THE SOFTWARE GIANT COULD DOUBLE ITS REVENUE BY FISCAL 1997 COMPAQ COMPUTER MOVED UP 2 1/8 TO 90 COMPAQ'S VICE PRESIDENT OF CORPORATE DEVELOPMENT ROBERT W STEARNS SAID THE HOUSTON COMPANY'S GROWTH PACE IS ON COURSE FOR COMPAQ TO OVERTAKE INTERNATIONAL BUSINESS MACHINES AS WORLDWIDE LEADER IN PERSONALCOMPUTER SHIPMENTS BY 1996 IBM DECLINED 1/2 TO 53 1/8 COMPUTER SCIENCES EL SEGUNDO CALIF GAINED 2 TO 37 1/2 MERRILL LYNCH NAMED THE COMPUTERBASED SYSTEMS AND COMMUNICATIONS SYSTEMS COMPANY ITS FOCUS ONE STOCK OF THE WEEK CUC INTERNATIONAL A STAMFORD CONN PROVIDER OF MEMBERSHIPBASED CONSUMER SERVICES LEAPED UP 2 1/2 TO 31 7/8 BEAR STEARNS ANALYST STEVE KERNKRAUT UPGRADED THE COMPANY'S SHARES TO STRONG BUY FROM BUY A NOTABLE LOSER WAS WMX TECHNOLOGIES AN OAK BROOK ILL PROVIDER OF SOLIDWASTE MANAGEMENT SERVICES WHICH SAGGED 3 1/4 TO 25 AS FOURTHQUARTER EARNINGS SLIPPED TO 34 CENTS A SHARE FROM 37 CENTS A YEAR EARLIER WALL STREET HAD BEEN EXPECTING EARNINGS OF 39 CENTS A SHARE WMX LED THE BIG BOARD'S MOSTACTIVES LIST WITH VOLUME OF 15 MILLION SHARES ABOVE AVERAGE DAILY TURNOVER OF 15 MILLION FORD MOTOR FELL 1 TO 68 1/2 DESPITE POSTING STELLAR FOURTHQUARTER EARNINGS OF 130 A SHARE COMPARED WITH A LOSS OF 185 A SHARE ON CHARGES ANALYSTS SAID THE MARKET RESPONSE REFLECTS A PERCEPTION THAT THE BIG THREE AUTO MAKERS ARE AMONG THE BIGGEST BENEFICIARIES OF THE REBOUNDING US ECONOMY AND THAT AFTER THE PAST FEW QUARTERS HIGHERTHANEXPECTED EARNINGS HAVE COME TO BE EXPECTED NEW ISSUE ISTITUTO MOBILIARE ITALIANO JUMPED TO 23 5/8 FROM ITS OFFERING PRICE OF 1924 AN AMERICAN DEPOSITARY RECEIPT YESTERDAY EACH ADR REPRESENTS THREE COMMON SHARES PROCEEDS FROM THE SALE OF THE ROMEBASED STATECONTROLLED MERCHANT BANK AND FINANCIAL SERVICES GROUP ISSUE WILL GO TO ITALY'S TREASURY WESTERN NATIONAL CLIMBED TO 13 3/8 ABOVE ITS INITIAL OFFERING PRICE OF 12 A SHARE YESTERDAY THE HOUSTON INSURANCE COMPANY SAID ITS PORTION OF THE NET PROCEEDS WILL BE ABOUT 214 MILLION AND WILL BE USED FOR GENERAL CORPORATE PURPOSES TRADERS SAID INVESTORS TEMPORARILY SHELVED THEIR CONCERNS ABOUT INTEREST RATES WITH THE TREASURY'S LONG BOND JUMPING MORE THAN 1/2 POINT PUSHING ITS YIELD DOWN TO 640 RATES HAD RISEN OVER THE LAST TWO SESSIONS FUELED BY FED CHAIRMAN ALAN GREENSPAN'S ANNOUNCEMENT FRIDAY BONDS WERE HELPED BY A TUMBLE IN CRUDEOIL FUTURES THE SECOND LEG OF THE TREASURY'S QUARTERLY REFUNDING WHERE 10YEAR NOTES WERE SOLD WENT MUCH AS EXPECTED THIRTYYEAR BONDS WILL BE SOLD TODAY I DIDN'T EXPECT THE STOCK MARKET TO DO SO WELL TODAY SAID BARRY BERMAN HEAD TRADER AT ROBERT W BAIRD BUT BONDS PUT ON A GOOD PERFORMANCE AND PEOPLE PUT MONEY TO WORK BUT JOSEPH J MCALINDEN CHIEF STRATEGIST AT DILLON READ SAID STOCKS ARE ENJOYING A NORMAL TECHNICAL BOUNCE FROM FRIDAY'S SHARP SELLOFF THE KEY OVER THE NEXT TWO DAYS IS THAT IF THIS MOMENTUM CONTINUES TO BUILD WE'RE PROBABLY GOING TO RETEST HIGHS MR MCALINDEN SAID HE VOICED CONCERN THAT BROADER MARKET INDEXES HAVE RISEN TO THE SAME EXTENT AS THE DOW INDUSTRIALS TODAY INVESTORS WILL FOCUS ON THE BOND MARKET AND THE 30YEAR BOND AUCTION BY TOMORROW ALL EYES WILL WATCH FOR THE RELEASE OF JANUARY PRODUCER PRICES THE PRODUCER PRICE INDEX IS AN IMPORTANT INFLATION INDICATOR AND ECONOMISTS ARE PREDICTING IT COULD BE DISAPPOINTING 9402100106 940210 LEISURE & ARTS PRODIGAL RETURNS TO PETER'S BURG STILL NO FATTED CALVES BY MANUELA HOELTERHOFF ST PETERSBURG RUSSIA THE LAST TIME I VISITED ST PETERSBURG IT WAS STILL LENINGRAD AND I WOULDN'T BE SURPRISED IF A CALL TO SPRUCE UP THE OLD SIGNS BROUGHT OUT LONG LINES OF EAGER VOLUNTEERS EVEN THREE DAYS IN THIS TOWN CAN MAKE YOU HAPPY AND DEPRESSED AT THE SAME TIME JUST NOW I HAVE EATEN A PERFECT BULGARIAN TOMATO PURCHASED AT THE WELLSTOCKED INDOOR FARMER'S MARKET NEAR DOSTOEVSKI'S HOUSE IN 1984 THE PLACE DIDN'T EXIST BUT TO MOST SHOPPERS IT'S ABOUT AS REAL AS THE INVISIBLE CITY OF KITEZH WHICH IS PLAYING AT THE KIROV'S RIMSKYKORSAKOV FESTIVAL FOR RUSSIANS SPENDING ONEQUARTER OF THEIR MONTHLY SALARY ON A KILO OF MEAT THE 500 RUBLE ABOUT 30 CENTS TOMATO IS A FANTASY CAN IT BE THAT MY LIFE UNDER THE COMMUNISTS WAS NORMAL A FRIEND WONDERS SHE ATE MORE BUT STOOD ON LINE A LOT THOSE LINES THAT ONCE CIRCLED RUSSIA DID SEEM A LOT SHORTER AS I WALKED THROUGH TOWN REVISITING SOME OF THE PLACES I REMEMBERED FROM MY LAST TRIP WHEN THIS WAS A POLICE STATE I SAW JUST ONE MILITARY TYPE YAWNING NEAR THE CASUAL CUSTOMS BOOTHS WHERE THE PERPLEXING ENTRY FORM WARNS AGAINST BRINGING IN SLAUGHTERED FOWL AND SURREALISTIC BILLBOARDS WELCOME THE TRAVELER TO A TOWN OF NIGHTCLUBS AND CELLULAR PHONES THE ASTORIA HOTEL THEN MUSTY SURLY RUIN WITH THUGS STATIONED AT THE DOOR TO KEEP LOCALS FROM CONTAMINATING CONTACTS WITH FOREIGNERS HITLER PLANNED TO HOLD HIS VICTORY BANQUET AT THIS LANDMARK AFTER THE SIEGE OF LENINGRAD BUT NEVER GOT TO MAIL THE PRINTED INVITATIONS NOW WOULDN'T WANT TO HIDEOUSLY RENOVATED WITH DECORATIVE DOORMEN IN OPERETTA OUTFITS NOW WELCOMING EVERYBODY PARTICULARLY LOCAL MAFIOSI WITH PORTABLE PHONES TAXIDRIVING RACKETEERS SLEAZY LOOKING BUSINESSMEN NEWLY MINTED PLUTOCRATS SPECULATORS PIMPS AND PROSTITUTES BUT SOME VENERABLE TRADITIONS ARE CAREFULLY PRESERVED THE RECEPTION DESK FOR INSTANCE MAINTAINS FAMED SOVIET ABILITY TO IGNORE LARGE PEOPLE LOOMING OVER THEM ROOM YOU WANT ROOM YOU ALREADY HAVE ROOM SHE FINALLY SCOWLED AS I TRIED TO CHANGE FROM A SUICIDAL SINGLE IN THE ANGLETERRE SECTION TO THE LESS UGLY OLDER WING THE MINIBAR OFFERED NO SOLACE REACHING FOR A LITTLE VODKA BOTTLE I CLUTCHED THIN AIR AT THE DELUXE ASTORIA YOU ARE MEANT TO GO FILL THE MINIBAR YOURSELF NEVSKY PROSPEKT THEN JUST THE ARCHITECTURE GLORIOUS EVEN IN ITS DILAPIDATION REMINDED ONE OF A SHOPPING BOULEVARD ONCE SO GLITTERING GOGOL WROTE A SHORT STORY ABOUT ITS SPARKLING DISPLAYS ELEGANTLY DRESSED WOMEN SPOTLESS PAVEMENT NOW ICECOVERED FUNHOUSE SIDEWALKS INDICATING A SHORTAGE OF STREET CLEANERS AND LIABILITY LAWYERS A BABUSHKA GOES DOWN OUTSIDE A FANCY FUR STORE ONE OF SEVERAL NEW SHOPS BUT THE GENERAL LOOK REMAINS SHABBY WITH A FEW BEGGARS BRAVING 25BELOW TEMPERATURES AND A STARVING GERMAN SHEPHERD RUNNING CIRCLES IN FRONT OF THE GOLDEDGED ADMIRALTY BUILDING MY FRIEND IS FEEDING 19 STRAYS MOST ABANDONED BY NEWLY IMPOVERISHED OWNERS GOSTINIY DVOR THEN FALLING DOWN ARCADED DEPARTMENT STORE WHERE ONE MADE DESULTORY ATTEMPTS TO SPEND THE RUBLES FOREIGNERS WERE FORCED TO BUY UPON ENTERING THE SOVIET UNION AND COULD NOT TAKE BACK ON PAIN OF DEATH NOW STILL FALLING DOWN BUT JAMMED WITH BOUTIQUES SELLING EVERYTHING FROM BOUCHERON PERFUME CINZANO AND TAMPAX TO BABY CARRIAGES AND COZY ITALIAN BOOTS THE DAYS WHEN RUSSIANS BOUGHT SHOES THAT DIDN'T FIT JUST BECAUSE A TRUCK DROPPED A LOAD ON THE SIDEWALK AND SOMEONE WOULD WANT THEM APPEAR TO BE OVER DOM KNIGI THEN ONCE PICTURESQUE BOOKSTORE OCCUPYING FORMER SINGER SEWING MACHINE HEADQUARTERS THAT SOMETIMES OFFERED MORE THAN PAUL ROBESON'S MEMOIRS AND THE GRAPES OF WRATH IN THE ENGLISH SECTION NOW DUMBFOUNDING EXCEPTING ONE WELLTHUMBED AGATHA CHRISTIE MYSTERY THE PALTRY SELECTION SEEMS CHOSEN BY SOMEONE WITH A DISTURBED SENSE OF HUMOR RUSSIA A SURVIVAL GUIDE ENGLISH FOR PRACTICAL MANAGEMENT COULD THIS BE SENT TO THE ASTORIA AUTOMOBILIST IN SAINT PETERSBURG A CITY WITHOUT MUCH TRAFFIC PARTICULARLY IN THE ARCTIC WINTER WHEN MOST LADAS HIBERNATE AND GILBERT AND GEORGE IN MOSCOW THE PERFORMANCE ARTISTS WHO WOULD APPRECIATE A CONCEPTUAL MINIBAR I WOULD HAVE THOUGHT IT NOT IMPOSSIBLE TO PROFITABLY IMPORT A FEW CHEAP PAPERBACKS BUT EVEN THE GERMAN SECTION OFFERS JUST ONE HARDBACK OF A JUDITH KRANTZ BODICE RIPPER IN TRANSLATION YELISEYEV'S THEN CALLED GASTRONOM 1 IN SEDUCTIVE SOVIETSPEAK AND FILLED WITH LONG QUEUES THANKS TO STALINIST SYSTEM OF MAKING PEOPLE STAND ON LINE FOR SO LONG THEY WERE TOO BEAT TO REBEL NOW SAME THREE LINES THE MAN BUYING SIX PINEAPPLES FIRST LINES UP TO GET THE SALES TICKET FROM THE WOMAN WHO SELLS FRUIT THEN HE GETS ON A SECOND LINE TO PAY THEN BACK TO THE ORIGINAL LINE TO PICK UP THE PINEAPPLES WAIT EXCOMRADES YOU WANT TO SHOUT THINK ABOUT IT INSTALL REGISTERS AT EVERY COUNTER FEWER LINES MORE PROFIT BUT THE DEPRESSING PINEAPPLE PURCHASE IS ONE END RESULT OF DECADES OF SYSTEMATIC MURDER OF THE SMART RUSSIANS KAZAN CATHEDRAL THEN A FAVORITE TOURIST STOP FOR AMERICANS ESCAPING BIBLE BELTERS AT HOME SINCE IT HOUSED THE MUSEUM OF RELIGION AND ATHEISM WITH ITS ENTERTAINING PICTURES OF SAINTS GETTING FRIED VIRGINS CHOPPED TO BITS DECOLLATED MARTYRS AND COPULATING NUNS IN EARLIER TIMES IT WAS HERE BY THE TOMB OF GENERAL KUTUZOV THAT GOGOL'S LARGE WALKING NOSE STOPPED IN TO PRAY NOW NOBODY PRAYS HERE NOT EVEN A NOSE THOUGH THE BUILDING ITSELF HAS UNDERGONE A MIRACULOUS CONVERSION INTO THE MUSEUM OF HISTORY OF WEST EUROPEAN CHRISTIANITY AND THE ORTHODOX CHURCH HOURS SEEM ERRATIC BUT THE NEW SHOW APPARENTLY INCLUDES AT LEAST A FEW FAVORITE TREASURES LIKE THE MANACLES SCREWED ONTO STAKEREADY HERETICS NOW VIEWED AS MARTYRS NOT DUPES RESTAURANT THEN MY ONLY MEMORY IS OF WAITERS IN SOME EMPTY HARD TO FIND ESTABLISHMENT HIDDEN BEHIND CHEAP LACE DRAPES DOING THEIR UTMOST TO KEEP US FROM SITTING DOWN AND EATING FOOD THEY WANTED FOR THEMSELVES OR FOR PARTY OFFICIALS WHO COULD CAUSE PAIN AND SUFFERING NOW TASTY RUSSIAN FOOD YOU ARE ALWAYS WELCOME THE HEARTY SIGN ON THE NEVSKY IS INVITING BUT I HAD LUNCH PLANS AT A PRIVATELY OWNED RESTAURANT NEAR THE KIROV ONE OF MANY SPRINKLED THROUGHOUT ST PETERSBURG A TOUGH TASTY CHUNK OF BEEFSTEAK TOPPED OFF BY AN EGG COST ABOUT 2 BUCKS BUT EVEN HERE IN THIS SELFENTERPRISING LITTLE PLACE WITH A FULL BAR AND ESPRESSO MACHINE A GROUP OF FOUR WAITED TO BE SEATED BECAUSE THE WAITRESS COULD NOT GRASP PUSHING TOGETHER TWO EMPTY SMALLER TABLES BY CONTRAST JOINT VENTURE RESTAURANTS WHILE BETTER RUN ARE OFTEN WILDLY EXPENSIVE ABOUT 70 FOR A THREECOURSE MEAL AT THE GRAND HOTEL EUROPE KIROV OPERA THEN DOWDY SISTER OF THE FAMED BALLET COMPANY WHICH WAS PRESENTING BEEFY MEN DANCING WITH SWORDS AND FARM EQUIPMENT IN A PUZZLING BALLET UNKNOWN TO THE INTERNATIONAL REPERTORY NOW AN INTERNATIONALLY ACCLAIMED COMPANY FAR ECLIPSING THE KIROV BALLET AS WELL AS THE COLLAPSING BOLSHOI OPERA OR BALLET THANKS TO ITS BANKABLE STAR CONDUCTOR VALERY GERGIEV HIS RIMSKYKORSAKOV FESTIVAL LAST WEEK CONFIRMED THAT WE MUST TAKE A FORGIVING VIEW OF THE MAN WHO WROTE THE FLIGHT OF THE BUMBLEBEE HERMITAGE MUSEUM THEN OVERGROWN CROWDED IMPOSSIBLE TO NAVIGATE MUSEUM WITH ENORMOUS COLLECTION INCLUDING COUNTLESS REMBRANDTS AND TUCKED AWAY ON THE TOP FLOOR IDEOLOGICALLY TAINTED PAINTINGS BY HENRI MATISSE AND VASSILY KANDINSKY APPROPRIATED FROM CAPITALIST COLLECTORS BUT THEN HIDDEN FOR DECADES ONGOING RENOVATIONS UNDER LEGENDARY DIRECTOR BORIS PIOTROVSKIJ CULMINATED IN A 20 MILLION RESTORATION OF CATHERINE THE GREAT'S COURT THEATER THE BILL PICKED UP BY MOSCOW NOW NEITHER CROWDED NOR SUBSIDIZED ATTENDANCE HOVERS AT 25 MILLION DOWN A MILLION LITTLE TRAVEL FROM THE REPUBLICS MOSCOW PAYS SALARIES LEAVING DIRECTOR MIKHAIL PIOTROVSKIJ SON OF BORIS TO FORGE ALLIANCES WITH UNESCO AND CORPORATE SPONSORS LIKE COCACOLA CO TO SHORE UP THE WATERLOGGED PALACE'S FOUNDATIONS CREATE LABS NEW GALLERIES ENGLISH LABELS ARE ON THE WAY GRAND HOTEL EUROPE THEN ART NOUVEAU WRECK READY TO TOPPLE ANY MINUTE NOW LAVISHLY RESTORED AND MODERNIZED BY A JOINT VENTURE INCLUDING THE CITY OF ST PETERSBURG AND THE SWEDISH RESO HOTELS FIRM WHICH MANAGES THE GRAND EXPENSIVE 275 FOR A SINGLE BUT THE 20 BREAKFAST WITH ALL YOU CAN EAT CAVIAR SERVED IN A LOFTY BANQUET HALL WITH A DAZZLING STAINEDGLASS WALL OF APOLLO RACING TOWARDS THE SUN MAKES ME FLEE THE ASTORIA NO REGRETS FAST EFFICIENT SERVICE GOOD FOOD HEALTH CLUB CHEERFUL ROOM CNN MINIBAR STOCKED COULD RESO BE ASKED TO RUN RUSSIA 9402100105 940210 REVIEW & OUTLOOK EDITORIAL FOB REGULATION TODAY THE SENATE BANKING COMMITTEE WILL VOTE ON RICKI TIGERT AS HEAD OF THE FDIC SHE HAVING AGREED TO RECUSE HERSELF FROM ISSUES INVOLVING THE CLINTONS AND WHITEWATER LET US ALL PAUSE TO SEE WHO IS RUNNING THE REST OF THE BANK REGULATORY APPARATUS WHY DEPUTY TREASURY SECRETARY ROGER ALTMAN A PRESIDENTIAL APPOINTEE AS WELL AS GEORGETOWN FRIEND IS RUNNING THE OSTENSIBLY INDEPENDENT RESOLUTION TRUST CORP AND EUGENE LUDWIG ANOTHER COLLEGE BUDDY OF BILL HAS BEEN INSTALLED AS COMPTROLLER OF THE CURRENCY WHY THE FOBS ARE TAKING OVER FINANCIAL REGULATION LOCK STOCK AND BARREL THEY HAVEN'T QUITE GOT THE FEDERAL RESERVE YET BUT THEY HAVE A REGULATORY REFORM PROPOSAL THAT WOULD TAKE CARE OF THAT THE CLINTON FOLKS AREN'T CONTENT TO RELEGATE CRONIES AND PALS TO HARMLESS BACKWATERS LIKE COMMERCE OR POSTMASTER GENERAL OR THE ALTER EGO OF A PRESIDENTIAL COUNSELOR THEY LEARNED BACK IN ARKANSAS THAT IT WAS CONVENIENT TO HAVE A BEVERLY BASSETT SCHAFFER SENDING DEAR HILLARY LETTERS WAVING THROUGH A NEW CAPITALIZATION PLAN FOR A FINANCIAL INSTITUTION WE'RE GLAD TO SEE THAT A COUPLE OF COURAGEOUS REPUBLICANS ARE BLOWING THE WHISTLE NORTH CAROLINA'S SENATOR LAUCH FAIRCLOTH UNLIKE SOME OF HIS COLLEAGUES ON DON RIEGLE'S BANKING COMMITTEE ISN'T WILLING TO LET THE MATTER DROP WITH MS TIGERT'S RECUSAL IN THE FDIC NOMINEE'S FIRST APPEARANCE BEFORE THE COMMITTEE THE SENATOR RAISED THE ISSUE OF HOW SOMEONE WHO SAYS SHE'S KNOWN THE CLINTONS FOR EIGHT YEARS AND BEEN A RENAISSANCE WEEKEND REGULAR COULD CONVINCINGLY HEAD AN AGENCY WITH AN ACTIVE INVESTIGATION OF THE MADISON S&L COLLAPSE MS TIGERT WEASLED BUT LATER SENT SENATOR FAIRCLOTH A RECUSAL STATEMENT WHICH SHE SAID WAS WRITTEN AFTER CONSULTING FDIC'S ETHICS OFFICE SHE PROMISED SHE'LL RECUSE HERSELF FROM MATTERS CONCERNING PRESIDENT OR MRS CLINTON IN THEIR PERSONAL CAPACITIES WHILE CONSOLING MS TIGERT ON THE UNFORTUNATE FATE SURROUNDING HER NOMINATION SENATOR FAIRCLOTH IS NOW WONDERING ABOUT THE CAVEAT PERSONAL DOES THAT REMIND YOU OF DIDN'T INHALE OR NO PRICE CONTROLS SEN FAIRCLOTH NOW WANTS MS TIGERT TO EXPAND YOUR RECUSAL FROM MATTERS INVOLVING THE PERSONAL ACTIVITIES OF PRESIDENT AND MRS CLINTON TO INCLUDE THEIR PUBLIC ACTIVITIES MORE POINTEDLY HE ASKS WILL YOU RECUSE YOURSELF FROM MATTERS CONCERNING WEBSTER HUBBELL VINCENT FOSTER DAN LASATER FROST AND COMPANY MADISON GUARANTY SAVINGS AND LOAN THE WORTHEN BANK CORPORATION AND ONWARD THROUGH ALL THE FINANCIAL INSTITUTIONS NOW RUNNING UNDER THE WHITEWATER FLAG HOW DID WE END UP WITH AN FDIC HEAD GOING IN RECUSING HERSELF FROM THE AGENCY'S MOST SENSITIVE BUSINESS MEANWHILE REP JIM LEACH IS WONDERING ABOUT DEPUTY TREASURY SECRETARY/INTERIM RTC CEO ROGER ALTMAN THE CONGRESSMAN WROTE LAST WEEK ALSO SEEKING RECUSAL COMMITMENTS IN MATTERS INVOLVING THE RTC'S INVESTIGATION OF MADISON'S COLLAPSE AND RELATIONSHIP TO WHITEWATER MR LEACH'S TONE IS CORDIAL BUT HE THINKS THE INHERENT CONFLICTS NEED TO BE FACED I HAVE HIGH REGARD FOR YOUR PERSONAL INTEGRITY BUT AS YOU KNOW FROM THE BEGINNING IT HAS BEEN AN AWKWARD SITUATION TO HAVE A PRESIDENTIALLY APPOINTED AND CONFIRMED OFFICER OF THE TREASURY DEPARTMENT ALSO HEAD AN INDEPENDENT FEDERAL AGENCY THE RTC WHEN THIS PROSPECT WAS FIRST SUGGESTED AT THE BEGINNING OF THE CLINTON ADMINISTRATION IT DID NOT STRIKE THE MINORITY AS OVERLY UNREASONABLE FOR A MONTH OR TWO GIVEN THE FACT THAT NO RTC HEAD HAD BEEN SELECTED HOWEVER IT HAS BEEN OVER A YEAR SINCE THE ADMINISTRATION HAS BEEN IN OFFICE AND IT CAN ONLY BE DESCRIBED AS STRUCTURALLY UNSEEMLY FOR A POLITICAL APPOINTEE OF AN EXECUTIVE BRANCH DEPARTMENT TO MAKE WHAT ARE IN EFFECT LAW ENFORCEMENT DECISIONS FOR AN INDEPENDENT FEDERAL AGENCY AS THEY MAY TOUCH UPON THE PRESIDENT FINALLY WE HAVE MR LUDWIG APPOINTED BY MR CLINTON TO HEAD THE COMPTROLLER'S OFFICE WHICH REGULATES AND EXAMINES NATIONAL BANKS THEY ATTENDED OXFORD AND YALE TOGETHER AND REMAIN CLOSE JUST HOW CLOSE THE AMERICAN BANKER DESCRIBED IN ITS JAN 31 EDITION REPORTING ON A VIDEOTAPE TAKEN AT A RENAISSANCE WEEKEND BY SOMEONE FROM SATURDAY NIGHT LIVE WHO WAS ALSO THERE THE TAPE FEATURED MR CLINTON BUT IT WAS HARD TO MISS MR LUDWIG IN A BRIGHT BLUE SWEATER AND WHITE SHORTS ALMOST EVERY SHOT OF THE PRESIDENT SHOWED THE BEAMING COMPTROLLER AT HIS SHOULDER SO WE HAVE THREE FRIENDS OF BILL OR HILLARY CALLING SIGNALS AMID A BLIZZARD OF RECUSALS AT THREE TRADITIONALLY INDEPENDENT BANK REGULATORY AGENCIES SURELY BY NOW ENOUGH IS KNOWN OF THE CLINTON POLITICAL MORES TO AGREE THAT WE'RE PAST THE POINT OF SIMPLY PASSING ALL THIS THROUGH AS OF NO CONSEQUENCE AFTER THE SAVINGS AND LOAN SCANDAL BCCI THE KEATING FIVE AND NOW WHATEVER WHITEWATER IS IT OUGHT TO BE AT LEAST CLEAR THAT FEDERAL FINANCIAL REGULATORS SHOULD BE HELD TO A CAESAR'S WIFE STANDARD OF PROPRIETY AND INDEPENDENCE INSTEAD WE GET THIS WE'RE QUITE USED TO THE CLINTON WHITE HOUSE STONEWALLING OR DERIDING ANYONE'S INQUIRIES OR DOUBTS ABOUT ITS BEHAVIOR BUT WE'RE GLAD THAT SENATOR FAIRCLOTH AND REP LEACH ARE PERSISTING WITH THEIR QUESTIONS ABOUT THE ADMINISTRATION'S APPOINTMENT PRACTICES AS WE RUN THE NUMBERS RENAISSANCE WEEKEND PLUS WHITEWATER PLUS THE RTC PLUS THE COMPTROLLER PLUS THE FDIC PLUS REGULATORY INDEPENDENCE DOES NOT COMPUTE 9402100104 940210 LEISURE & ARTS BUSINESS BOOKSHELF BIOTECH FOR FUN AND PROFIT BY DAVID STIPP IN HIS 1959 TWO CULTURES ESSAY CP SNOW PORTRAYED SCIENTISTS AS ALTRUISTIC SEEKERS OF KNOWLEDGE TO ALLEVIATE SUFFERING TODAY THAT IMAGE SEEMS AS DATED AS ATOMICPOWERED AIRPLANES THE NOTION THAT SCIENCE IS DRIVEN BY LOFTY MOTIVES ISN'T MERELY WRONG IT'S IMPRACTICAL BARRY WERTH SUGGESTS IN THE BILLIONDOLLAR MOLECULE SIMON & SCHUSTER 445 PAGES 25 TO THE BOOK'S CENTRAL FIGURE SCIENTISTENTREPRENEUR JOSHUA BOGER ALTRUISTIC MOTIVES ARE INFINITELY LESS POWERFUL LESS TRUSTWORTHY LESS USEFUL THAN SELFISH ONES SCIENCE IS SO DEMANDING THAT ONLY THOSE DRIVEN BY THE UNALLOYED PURSUIT OF FAME AND FORTUNE CAN HOPE TO SUCCEED THE WORKAHOLIC RESEARCHERS DR BOGER HIRES AFTER HE LEAVES DRUG INDUSTRY LEADER MERCK & CO TO FORM VERTEX PHARMACEUTICALS AREN'T OUT TO SAVE THE WORLD BUT TO BASH THEIR COMPETITORS TO THINK THEMSELVES DIVINE TO WIN AND TO AVOID THE TERRIBLE DEATHLY ANGUISH OF LOSING THEIR ARENA IS ONE OF BIOTECHNOLOGY'S HOTTEST AREAS RATIONAL DRUG DESIGN THE METHOD IS BASED ON GROWING KNOWLEDGE OF HOW DISEASES WORK AT THE MOLECULAR LEVEL SCIENTISTS STUDY CULPRIT MOLECULES' STRUCTURES THEN SYNTHESIZE COMPOUNDS WITH JUST THE RIGHT COMPLEMENTARY SHAPES TO STICK TO THEM AND GUM UP THEIR WORKS IT'S A LOT SPEEDIER THAN THE TRADITIONAL SCREENING OF THOUSANDS OF COMPOUNDS WHICH DR BOGER DISPARAGES AS A MONKEYS WITH TYPEWRITERS APPROACH MR WERTH'S ENTERTAINING CHRONICLE OF VERTEX'S FIRST FOUR YEARS FOLLOWS DR BOGER AND HIS 30SOMETHING SCIENTISTS AS THEY SEEK A DRUG TO BLOCK MISDIRECTED IMMUNESYSTEM ATTACKS IN ORGANTRANSPLANT REJECTION RHEUMATOID ARTHRITIS AND OTHER DISORDERS THE JEANSCLAD ALCHEMISTS ALSO HOPE TO TURN PAPER INTO GOLD THEIR STOCK OPTIONS WILL BE WORTH MILLIONS IF THEY CAN CAPTURE THE MARKET FOR A BETTER IMMUNE SUPPRESSANT BUT IT TURNS OUT TO BE FAR FROM THE ORDERLY PROCESS DR BOGER CONJURES UP FOR POTENTIAL INVESTORS EARLY ON HE IS INFURIATED TO LEARN THAT ONE OF VERTEX'S OUTSIDE SCIENTIFIC ADVISERS A HARVARD CHEMIST IS MOUNTING A RIVAL EFFORT TO DRAW UP MOLECULAR BLUEPRINTS FOR THE SAME SORT OF DRUG AND WORSE MAY COLLABORATE WITH COMPETING COMPANIES AFTER MONTHS OF BACKBREAKING LABOR THE VERTEX TEAM IS STUNNED TO DISCOVER THAT THEIR ASSUMPTIONS ABOUT HOW A TARGET MOLECULE FUNCTIONS ARE WRONG AND THAT MUCH OF THEIR WORK IS THEREFORE POTENTIALLY USELESS EVENTUALLY THE COMPANY BOGGED DOWN IN ITS PURSUIT OF AN IMMUNE SUPPRESSANT PLUNGES INTO WORK ON AN AIDS TREATMENT A RESEARCH MINEFIELD DR BOGER ORIGINALLY SWORE VERTEX WOULDN'T ENTER MR WERTH MAKES THE MOST OF THESE VICISSITUDES WEAVING THEM INTO A LIVELY NARRATIVE OF CLASHING EGOS GRAND GAMBLES AND FRANTIC SCRAMBLING AFTER RENOWN AND RICHES BOTH THE CORPORATE SCIENTISTS AND THEIR ACADEMIC RIVALS ARE OBSESSED WITH WINNING AND THEY CONTINUALLY FRET THAT THE COMPETITION WILL PUBLISH A CRITICAL FINDING FIRST IN MR WERTH'S APT ANALOGY THEY ARE LIKE THE CREW OF A SUBMARINE IN ENEMY WATERS THEY GRIMLY HUNKER DOWN AT THEIR STATIONS SWEATING ANXIOUSLY LISTENING AWAITING THE NEXT DEPTH CHARGE UNLEASHED BY ENEMIES IN TECHNICAL JOURNALS THE SOUL OF VERTEX'S NEW DRUG IS DR BOGER'S GOODHUMORED HUBRIS WE REALLY SHOULD BE DOING SOMETHING TOGETHER HE SAYS AFTER A BIG DRUG COMPANY HE COURTED AS A DEEPPOCKETS PARTNER SENDS HIM PACKING WE HAVE SIMILAR ARROGANCE LEVELS ARROGANCE DOESN'T BOTHER OR IMPRESS US WE UNDERSTAND ARROGANCE ONE OF THE BOOK'S MOST INTERESTING SUBTEXTS IS THE GAP BETWEEN WALL STREET PERCEPTIONS AND BIOTECH REALITIES INVESTORS DON'T WANT TO HEAR HOW SCIENCE REALLY PROCEEDS JERKING IN FITS AND STARTS DOWN COUNTLESS BLIND ALLEYS THEY PREFER REASSURING STORIES ABOUT STEADY PROGRESS AND DR BOGER'S COCKY SELFCONFIDENCE READILY ENABLES HIM TO GIVE THEM THE IMPRESSION OF A SURE THING EVEN AS HIS TOP LIEUTENANT HALFJOKINGLY LABELS VERTEX'S PITCHES BLUE SMOKE AND MIRRORS WHEN VERTEX'S UNDERWRITERS SEEK TO SCALE BACK ITS INITIAL PUBLIC OFFERING BECAUSE OF A SKITTISH MARKET DR BOGER OVERRULES THEM AND PRESSES HIS OWN BOARD TO BUY ENOUGH VERTEX SHARES TO MAKE THE OFFERING FLY THE ARROGANCE PAYS OFF SINCE GOING PUBLIC AT 9 IN 1991 VERTEX HAS PROSPERED AND BASED LARGELY ON ITS PROMISING AIDS WORK CLOSED YESTERDAY AT 1825 MR WERTH BAGS A HOST OF TELLING ANECDOTES IN HIS TREK BEHIND THE SCENES OF THE BIOTECH BUSINESS BUT UNFORTUNATELY HIS BOOK ENDS BEFORE VERTEX REACHES CLINICAL TESTS PERHAPS THE TOUGHEST AND MOST INTERESTING PHASE OF DRUG DEVELOPMENT MR WERTH DOES TRACK A PROMINENT SURGEON'S CLINICAL WORK WITH A DRUG RELATED TO VERTEX'S PROJECT BUT THE EPISODES SEEM PARTS OF A DIFFERENT BOOK ARTIFICIALLY GRAFTED ONTO THE VERTEX STORY IN THE END MR WERTH'S INSISTENCE THAT WINNING IS EVERYTHING IN SCIENCE SEEMS TO OVERCORRECT FOR PAST IDEALIZATIONS NO DOUBT SCIENTISTS ARE JUST AS COMPETITIVE AS THE REST OF US BUT SURELY THEIR MOTIVATIONS ALSO ARE AS COMPLEX AS THOSE IN OTHER CALLINGS MR WERTH'S SCIENTISTS SEEM A LITTLE UNREAL UTTERLY FIXATED ON BASHING THE COMPETITION THEY ARE ALL ANXIOUS WORK AND NO PLAY ISN'T THERE SOMETHING BESIDES THE LURE OF WINNING A BILLION DOLLAR RESEARCH RACE ONE WONDERS THAT EXPLAINS WHY THEY DO IT PERHAPS ANSWERS LIE IN MOTIVES MR WERTH MINIMIZES SUCH AS CURIOSITY AND COMPASSION MR STIPP COVERS SCIENCE FOR THE WALL STREET JOURNAL IN BOSTON 9402100103 940210 TECHNOLOGY & HEALTH CIGARETTES FOUND TO BOOST WOMEN'S OSTEOPOROSIS RISK BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL CIGARETTE 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 PREVIOUS STUDIES THAT OVER THE YEARS HAVE LINKED SMOKING AND A POTENTIALLY DANGEROUS REDUCTION IN BONE DENSITY THE REPORT PUBLISHED IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE ALSO PROVIDES FURTHER EVIDENCE THAT SMOKING INTERFERES WITH THE HORMONE ESTROGEN WHICH IS VITAL TO BONE FORMATION OSTEOPOROSIS AFFECTS ABOUT 25 MILLION AGING WOMEN IN THE UNITED STATES AND CAUSES ABOUT 13 MILLION FRACTURES EVERY YEAR MOSTLY OF THE HIPS WRISTS AND SPINE PUBLICHEALTH OFFICIALS PUT COSTS OF TREATING THE DISEASE AT ABOUT 10 BILLION ANNUALLY WOMEN ARE BEING ENCOURAGED TO PREVENT THE DISEASE BY INCREASING THEIR CONSUMPTION OF THE BONEBUILDING MINERAL CALCIUM BY TAKING ESTROGEN SUPPLEMENTS AFTER MENOPAUSE WHEN NATURAL ESTROGEN LEVELS DECLINE AND BY NOT SMOKING THE LATEST STUDY BY EGO SEEMAN AND JOHN LLEWELYN HOOPER AT THE UNIVERSITY OF MELBOURNE STUDIED BONE DENSITY AMONG 41 PAIRS OF MOSTLY MIDDLEAGED AND ELDERLY FEMALE TWINS IN WHICH ONE SISTER SMOKED AND THE OTHER DIDN'T OR IN WHICH ONE SIBLING SMOKED MUCH MORE THAN THE OTHER THE AUSTRALIAN RESEARCHERS FOUND THAT WOMEN WHO SMOKED THE EQUIVALENT OF ONE PACK A DAY FOR 10 YEARS ON AVERAGE HAD A 1 OR 2 DECREASE IN BONE DENSITY AS COMPARED TO WOMEN WHO NEVER SMOKED OR SMOKED LITTLE OVER FOUR OR FIVE DECADES THIS DIFFERENCE CAN PUT A WOMAN AT SHARPLY HIGHER RISK OF OSTEOPOROSIS THE RESEARCHERS SAID IN FACT WHERE ONE TWIN SMOKED SIGNIFICANTLY MORE OVER TIME THAN THE OTHER TWIN THE RESEARCHERS FOUND A 5 TO 10 REDUCTION IN BONE DENSITY ENOUGH BONE LOSS TO SHARPLY RAISE THE RISK OF A FRACTURE THE RESEARCHERS SAID THIS DIFFERENCE REMAINED THE SAME EVEN WHEN THEY ACCOUNTED FOR DIFFERENCES IN A WIDE RANGE OF LIFESTYLES AND ESTROGEN USE THE RESEARCHERS SAID THE FINDINGS ARE ESPECIALLY TROUBLING BECAUSE OF A RISE IN SMOKING AMONG YOUNG WOMEN RECENT SURVEYS HAVE FOUND THAT 25 OF AMERICAN WOMEN SMOKE THIS STUDY SUGGESTS THAT BY THE EARLY 21ST CENTURY THERE WILL BE AN INCREASE IN FRACTURES ATTRIBUTABLE TO SMOKING THE RESEARCHERS SAID RECOGNITION OF THESE CONSEQUENCES FOR OSTEOPOROSIS MAY HELP DISSUADE WOMEN FROM TAKING UP OR CONTINUING TO USE TOBACCO IN AN EDITORIAL ACCOMPANYING THE STUDY CHARLES W SLEMENDA OF THE UNIVERSITY OF INDIANA SCHOOL OF MEDICINE IN INDIANAPOLIS SAID THAT PHYSICIANS SHOULD MENTION THE DECREASED BONE DENSITY AND INCREASED RISK OF FRACTURES WHEN THEY COUNSEL PATIENTS ABOUT SMOKING CESSATION 9402100102 940210 REVIEW & OUTLOOK EDITORIAL HOSOKAWA DOES WASHINGTON JAPAN'S MORIHIRO HOSOKAWA MAY BE SUBLIMELY POPULAR AT HOME BUT HIS VISIT TO WASHINGTON TOMORROW HAS BEEN PRECEDED BY A GREAT DEAL OF UNFRIENDLY BLUSTER FROM THE WHITE HOUSE YES EVERYBODY AGREES THAT IT WOULD BE A GOOD THING IF JAPAN WERE MORE OPEN TO IMPORTS NOT THE LEAST OF THE BENEFICIARIES WOULD BE JAPAN'S OWN CONSUMERS BUT MR HOSOKAWA IS ATTACKING THIS PROBLEM AT ITS ROOTS WITH HIS RADICAL REFORM OF JAPAN'S ONEPARTY TECHNOCRACY WHY DO THE CLINTONITES SEEM SO DETERMINED TO SCREW THINGS UP LIKE AN INTRUDER AT A FAMILY QUARREL THE CLINTON ADMINISTRATION HAS JUMPED INTO TOKYO'S DOMESTIC FRAY AND TRIED TO PRESSURE MR HOSOKAWA INTO ENDORSING NUMERICAL TARGETS THESE WOULD REQUIRE JAPAN TO BUY FIXED AMOUNTS OF PRODUCTS FROM FAVORED US INDUSTRIES WHETHER JAPANESE CONSUMERS WANT THEM OR NOT RISING UP TO REPEL THIS NONSENSE IS THE MINISTRY OF FINANCE THE SAME MANDARINS AND TECHNOCRATS WHO'VE BEEN STONEWALLING MR HOSOKAWA'S EFFORTS TO CUT TAXES AND DEREGULATE JAPAN'S ECONOMY HARD TO BELIEVE BUT WASHINGTON HAS CREATED AN OPENING FOR THE BUREAUCRACY TO POSE AS CHAMPIONS OF FREE TRADE AND CONSUMER SOVEREIGNTY THAT USED TO BE AMERICA'S JOB THOUGH NOW WASHINGTON SOUNDS LIKE IT WANTS TO RESURRECT COMECON THE OLD AND HAPLESS QUOTABASED SOVIET TRADING SYSTEM WITH THE POLITICAL STAKES IN TOKYO SO HIGH IT WOULD BE GOOD TO HAVE SOME CLARITY ABOUT THE DIFFERENCE BETWEEN THE GOOD GUYS AND THE BAD GUYS ON WHOSE MYOPIC ADVICE HAVE THE CLINTONITES BEEN WADING AROUND AND MUDDYING UP THE BATTLE LINES WALTER MONDALE THE US AMBASSADOR HAS BEEN PROVIDING SAGE GUIDANCE FROM TOKYO ON THE SIGNIFICANCE OF THE CHANGES THERE BUT HIS VOICE DOESN'T CARRY FAR ENOUGH TO DROWN OUT COMMERCE SECRETARY RON BROWN AND TRADE REPRESENTATIVE MICKEY KANTOR WHO ARE APPARENTLY CALLING THE SHOTS THEY'RE A COUPLE OF CAREER WASHINGTON FIXERS AND IT SHOWS THE NUMERICAL TARGETS THEY'VE BEEN ADVOCATING AMOUNT TO LITTLE MORE THAN A MECHANISM FOR FUNNELING JAPANESE PORK TO THEIR FUTURE LOBBYING CLIENTS PARTICULARLY SILICON VALLEY AND THE BIG US CONSTRUCTION COMPANIES AT THIS POINT CAN THESE PEOPLE EVEN DISTINGUISH BETWEEN WHAT THEY DID BEFORE AS LOBBYISTS AND WHAT THEY'RE SUPPOSED TO DO NOW AS POLICY MAKERS MR CLINTON CAMPAIGNED ON THE THEME THAT GEORGE BUSH TOOK TOO MANY TRIPS AS IF FOREIGN POLICY WERE AN EFFETE PASTIME OF THE OVERBRED LEFT TO FOLLOW ITS OWN INSTINCTS THE CLINTON MACHINE STILL TREATS FOREIGN POLICY AS AN APPENDAGE OF DOMESTIC CONSTITUENCY POLITICS POLICY TOWARD JAPAN HAS BEEN FOLLOWING THE RAILS LAID DOWN DURING THE CAMPAIGN WHEN THE IDEA WAS TO ROUSE VOTERS IN THE MIDWEST WITH A LOT OF JABBER ABOUT GETTING TOUGH ONE OF THE WORLD'S PREMIER ECONOMIC RELATIONSHIPS DESERVES BETTER AND WE HOPE MR CLINTON WILL USE THE SUMMIT TO SET A NEW COURSE ONCE ENGAGED HIS INSTINCTS OFTEN ARE GOOD HE CAME BELATEDLY TO THE NORTH AMERICAN FREE TRADE AGREEMENT FIGHT WON AN IMPORTANT SYMBOLIC VICTORY AND NOW PREACHES FREE TRADE FOR THE WESTERN HEMISPHERE NEXT MONTH HE PLANS TO INVITE ALL THE EMERGING DEMOCRACIES OF LATIN AMERICA INTO THE NAFTA CLUB IN HIS OWN WAY MR HOSOKAWA IS PART OF THE GLOBAL MOVE TOWARD MORE FREEDOM AND DEMOCRACY NO DOUBT THAT'S WHY HIS POPULARITY RATINGS ARE OFF THE CHART OF COURSE JAPAN IS NO CHILE OR ARGENTINA AND EVEN THE CLINTON ADMINISTRATION'S CLUMSY MEDDLING PROBABLY CAN'T KNOCK THIS BULLET TRAIN OFF THE TRACK BUT IN THE BATTLE FOR JAPAN'S FUTURE WASHINGTON OUGHT TO BE STANDING SQUARELY WITH MR HOSOKAWA INSTEAD OF TRYING TO SHAKE HIM DOWN FOR PIPSQUEAK TRADE CONCESSIONS 9402100101 940210 ENTERPRISE TIME LIMITS ARE SOUGHT ON LIABILITY FOR CLEANUP COSTS GROUPS WANT TO CUT UNCERTAINTY SMALL FIRMS FACE IN ASSESSMENT PROCESS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEVERAL SMALL BUSINESS AND ENVIRONMENTAL GROUPS TODAY WILL JOINTLY RECOMMEND SETTING TIME LIMITS ON THE LIABILITIES OF SMALL COMPANIES TO PAY CLEANUP COSTS AT TOXICWASTE SITES THE RECOMMENDATIONS WOULD CUT THE LONG PERIOD OF UNCERTAINTY THAT SMALL BUSINESSES NOW FACE AS GOVERNMENT REGULATORS DETERMINE RESPONSIBILITY FOR TOXICWASTE SITE CLEANUPS THE GROUPS MAKING THE PROPOSAL SAY THEY EXPECT CONGRESS AND THE CLINTON ADMINISTRATION TO SUPPORT IT IN A LETTER TO PRESIDENT CLINTON THE GROUPS WILL PROPOSE GIVING THE GOVERNMENT STRICT DEADLINES FOR DETERMINING A SMALL COMPANY'S SHARE OF THE CLEANUP COSTS AT A SITE GOVERNED BY THE FEDERAL SUPERFUND LAW UNDER THE PROPOSAL A COMPANY THAT CONTRIBUTED LITTLE TO A TOXICWASTE SITE WOULD BE RELEASED FROM ITS CLEANUP COSTS IF FEDERAL OFFICIALS TOOK MORE THAN 10 MONTHS TO DETERMINE ITS SHARE OF THOSE COSTS CURRENTLY IT CAN TAKE FIVE TO SEVEN YEARS TO DETERMINE RESPONSIBILITY THE GROUPS WILL GIVE DETAILS ABOUT THEIR RECOMMENDATIONS TODAY AT A HEARING BEFORE THE HOUSE ENERGY AND COMMERCE COMMITTEE'S SUBCOMMITTEE ON HAZARDOUS WASTES THE SUGGESTED SAFEGUARDS WOULD BE ADDED TO SUPERFUND REFORMS RECENTLY PROPOSED BY THE ADMINISTRATION AND BY THE NATIONAL COMMISSION ON SUPERFUND A COALITION OF 26 REPRESENTATIVES FROM BUSINESS ENVIRONMENTAL AND COMMUNITY GROUPS THE HEART OF THOSE SUGGESTED REFORMS IS A NONJUDICIAL ARBITRATION PROCESS THAT WOULD REMOVE SUPERFUND DISPUTES FROM THE COURTS SUPERFUND POSES BIG PROBLEMS FOR SMALL COMPANIES ALTHOUGH SMALL CONCERNS USUALLY CONTRIBUTED LITTLE TO THE WASTE SITES IN QUESTION THEY HAVE OFTEN BECOME THE TARGET OF LAWSUITS BY BIG COMPANIES SEEKING TO CUT THEIR CLEANUP COSTS BY COLLECTING FROM OTHER BUSINESSES THAT USED THE SAME SITES DEFENSE AGAINST THESE SOCALLED THIRDPARTY SUITS HAS CREATED HEAVY LEGAL EXPENSES FOR MANY SMALL COMPANIES THE UNRESOLVED LIABILITY OR THE CLEANUP HAVE ALSO MADE IT HARDER FOR SOME TO OBTAIN CREDIT THE SMALL BUSINESS AND ENVIRONMENTAL CAMPS SAY THEY FOUND COMMON GROUND ON THE ISSUE BECAUSE BOTH WANT TO WIN REFORM OF THE SUPERFUND LAW THIS YEAR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE NATION'S LARGEST SMALLBUSINESS ORGANIZATION THE SMALL BUSINESS LEGISLATIVE COUNCIL AND THE PRINTING INDUSTRIES OF AMERICA SIGNED THE LETTER TO MR CLINTON ALONG WITH THE ENVIRONMENTAL DEFENSE FUND THE NATURAL RESOURCES DEFENSE FUND AND THE SIERRA CLUB SMALL BUSINESS ADVOCATES AND ENVIRONMENTALISTS ARE UNLIKELY ALLIES WHO FREQUENTLY HAVE DISAGREED ON REGULATORY ISSUES BUT THE LETTER TO THE PRESIDENT REFLECTS THEIR COMBINED INTERESTS SMALL BUSINESSES ARE FULLY PREPARED TO CARRY THEIR SHARE OF RESPONSIBILITY FOR TOXICWASTE CLEANUP IF THE GOVERNMENT CAN CORRECT PROBLEMS WITH THE CURRENT PROGRAM IT SAYS THE LETTER ALSO SAYS THE ENVIRONMENTAL COMMUNITY RECOGNIZES THAT MANY SMALL BUSINESSES FACE UNNECESSARY BURDENS UNDER THE CURRENT SYSTEM ONE OF THE KEYS TO GETTING THIS GOING WAS THAT THE SMALLBUSINESS COMMUNITY WASN'T TELLING US THEIR MEMBERS WANTED TO WALK AWAY FROM THEIR CLEANUP RESPONSIBILITIES SAID WILLIAM ROBERTS LEGISLATIVE DIRECTOR FOR THE ENVIRONMENTAL DEFENSE FUND THIS AGREEMENT LEAVES IN PLACE THE BASIC STRUCTURE OF LIABILITY BUT GETS RID OF A ONESIZEFITSALL WAY OF IMPLEMENTING IT THE PROPOSALS IF ADOPTED WOULD IMPROVE THE SYSTEM A GREAT DEAL FOR THE MAJORITY OF OUR MEMBERS SAID HARRIET JAMES THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS'S LOBBYIST FOR ENVIRONMENTAL ISSUES THE RECOMMENDATIONS ARE AIMED AT COMPANIES WITH 100 OR FEWER EMPLOYEES BUT WOULD EXCLUDE SMALL COMPANIES FOUND TO BE RESPONSIBLE FOR SIGNIFICANT AMOUNTS OF CONTAMINATION AT A SITE TYPICALLY SMALL BUSINESSES SUCH AS AUTOREPAIR SHOPS TIRE DEALERS PRINTERS AND DRY CLEANERS HAVE BEEN AFFECTED BY THE SUPERFUND LAW THE GROUPS SUGGEST REQUIRING FEDERAL OFFICIALS TO FOLLOW A SPECIFIC TIMETABLE FOR DETERMINING THE COSTS SMALL COMPANIES MUST PAY UNDER SUPERFUND UNDER THE PROPOSED SYSTEM SMALL COMPANIES WOULD PAY LESS MONEY IF THE WHOLE PROCESS TAKES LONGER THAN SIX MONTHS IF IT TAKES LONGER THAN 10 MONTHS THEY WOULD PAY NOTHING AT ALL ACCORDING TO THE SMALL BUSINESS SETTLEMENT PROCEDURES ALREADY PROPOSED BY THE ADMINISTRATION SMALL COMPANIES WOULD PAY THEIR ESTIMATED CLEANUP COSTS PLUS A PREMIUM PAYMENT REFLECTING THE FACT THAT THE ESTIMATE MIGHT BE TOO LOW UNDER THE RECOMMENDED TIMETABLE IF THE GOVERNMENT TOOK EIGHT MONTHS TO DETERMINE A COMPANY'S LIABILITY THE SMALL COMPANY WOULDN'T PAY THE PREMIUM IF THE PROCESS EXCEEDS 10 MONTHS THE SMALL COMPANY WOULDN'T HAVE TO PAY ANY CLEANUP COSTS UNLESS IT IS DETERMINED THAT THE DELAY WAS BEYOND THE CONTROL OF THE ENVIRONMENTAL PROTECTION AGENCY THE GROUPS ALSO RECOMMENDED THAT THE GOVERNMENT BE REQUIRED TO CONSIDER A SMALL COMPANY'S ABILITY TO PAY FOR PART OF A TOXICWASTE CLEANUP AND STILL REMAIN VIABLE THAT PROCESS CURRENTLY IS AN INFORMAL ONE THE GROUPS SAID THE PROVISION WOULD APPLY TO COMPANIES WITH 20 OR FEWER WORKERS AND WITH LESS THAN 18 MILLION IN ANNUAL REVENUE THE IDEA IS THAT A VERY SMALL COMPANY SHOULDN'T HAVE TO HIRE AN ATTORNEY TO DEFEND ITSELF AGAINST THE FEDERAL GOVERNMENT SAID BENJAMIN COOPER CHIEF LOBBYIST FOR THE PRINTING INDUSTRIES OF AMERICA OTHER RECOMMENDATIONS THE COALITION SENT TO THE PRESIDENT INCLUDE USING AN ARBITRATION PROCESS TO AVOID YEARS OF COSTLY SUPERFUND LITIGATION LETTING SMALL COMPANIES MAKE SUPERFUND PAYMENTS OVER A PERIOD OF TIME INCLUDING INTEREST PAYMENTS AND SETTING UP A SMALL BUSINESS ASSISTANCE OFFICE AT EPA HEADQUARTERS AND IN EACH REGIONAL OFFICE TO HANDLE SUPERFUND PROBLEMS STEPHEN ESSER CHAIRMAN OF KUTZTOWN PUBLISHING CO IN KUTZTOWN PA SAID THE PROPOSALS IF ADOPTED WOULD HELP HIM HE SPENT NEARLY 500000 INCLUDING CLEANUP COSTS AND LEGAL FEES TO SETTLE A THIRDPARTY SUPERFUND SUIT AND SAYS HE HAS RECEIVED A LETTER OF INQUIRY FROM THE EPA ABOUT ANOTHER SITE THE COMMERCIAL PRINTING COMPANY HAS 72 EMPLOYEES AND ABOUT 6 MILLION IN ANNUAL SALES HE SAID THE WASTE SITE HIS COMPANY USED WAS A MUNICIPAL DUMP WHERE ALL THE LOCAL TRASH WAS SENT THERE ARE A LOT OF BUSINESSES OUT THERE JUST TRYING TO DO THE RIGHT THING HE SAID BUT WHAT REALLY TICKS ME OFF OUT OF ALL THE MONEY I SPENT ONLY ABOUT 100000 OF IT IS SUPPOSED TO GO FOR THE SITE'S CLEANUP 9402100100 940210 LEISURE & ARTS TV THE OLYMPICS A TROUBLED NUN EXECUTIONS AND MICHAEL BY DOROTHY RABINOWITZ CBS SATURDAY FEB 12 811 PM EST OPENING CEREMONIES FROM LILLEHAMMER NORWAY CONTRARY TO APPEARANCES A GREAT DEAL ELSE WILL BE GOING ON IN LILLEHAMMER BESIDE WOMEN'S FIGURE SKATING AND THE NANCY KERRIGAN DRAMA CBS WILL AIR A TOTAL OF 120 HOURS LIVE AND TAPED EVENTS COVERAGE BEGINS SUNDAY FEB 13 9 AM WEEKENDS SATURDAY PROGRAM RUNS FROM 16 PM AND CONTINUES FROM 79 PM WITH LATENIGHT WRAPUPS TO FOLLOW SUNDAY PROGRAM RUNS FROM 9 AMNOON FOLLOWED BY MIDAFTERNOON COVERAGE TILL 6 PM PRIMETIME SHOW RUNS FROM 811 PM FOLLOWED BY WRAPUPS WEEKDAYS COVERAGE INCLUDES TWO HOURS IN THE MORNING 79 AM A PRIMETIME PROGRAM BEGINNING AT 8 PM TO BE FOLLOWED BY WRAPUPS IN THE LATE HOURS TNT TURNER NETWORK WILL BROADCAST FIVE HOURS OF THE GAMES WEEKDAYS ONLY FROM 16 PM EXCLUDING MONDAY FEB 21 PRESIDENT'S DAY WHEN CBS COVERAGE WILL TAKE OVER THE 16 PM SLOT THIS FILM SHOT ON LOCATION IN A LOS ANGELES HOSPITAL ASPIRES TO SERVE AS A TESTAMENT TO CONDITIONS IN EMERGENCY ROOMS AND TO THE LIFEANDDEATH CHOICES CONFRONTING DOCTORS WORKING IN WHAT HAVE COME TO BE KNOWN AS WAR ZONES THE FIRST HALFHOUR OR MORE IS ALL BATTLEFIELD ATMOSPHERICS AND SO SHRILLY APOCALYPTIC IN TONE IT TAKES PATIENCE TO STAY WITH IT STILL THE SHOW'S VITAL SIGNS BEGIN TO REVIVE SOON ENOUGH WHICH OWES MUCH TO THE PRESENCE OF JOE MANTEGNA GRIM AND SCATHINGLY BELIEVABLE AS AN EMERGENCYROOM PHYSICIAN WHO MUST MAKE ONE OF THE LIFEORDEATH CHOICES FOR A PATIENT WITH A CRITICAL HEAD INJURY PAUL DOOLEY IS ALTOGETHER UNSETTLING IN HIS DEADON PORTRAYAL OF THE PATIENT IN QUESTION A CITIZEN WHO INSISTS WHILE LYING UNATTENDED IN A CORNER OF THE WAR ZONE ON BEHAVING LIKE A MAN STILL CONNECTED TO CIVILIZATION THERE IS SOME CUMBERSOME SPEECHMAKING AND PALAVER ABOUT POLITICS NONE OF WHICH FORTUNATELY DETRACTS FROM WHAT IS IN THE END POWERFUL DRAMA A YORKSHIRE MILL OWNER'S DAUGHTER ENTERS A CONVENT ONLY TO DISCOVER 16 YEARS LATER THAT THE GREAT WORLD OUTSIDE HAS A CLAIM ON HER THUS DOES SISTER GABRIEL BECOME ENTANGLED IN A CHAIN OF EVENTS INVOLVING HER BROTHER'S FAMILY THE SURVIVAL OF THE MILL AND TEMPTATIONS OF THE FLESH ALL OF WHICH NATURALLY CALL INTO QUESTION HER SUITABILITY FOR THE CLOISTERED LIFE THIS FOURPART MASTERPIECE THEATRE PRESENTATION IS BASED ON A NOVEL BY MARCELLE BERNSTEIN WHO SEEMS TO HAVE GONE AROUND THE WORLD INTERVIEWING NUNS INDEED THE PORTRAIT OF LIFE WITHIN THE CONVENT HERE IS SIGNIFICANTLY RICHER AND MORE TELLING THAN THE SCENES OUTSIDE WHICH DOMINATE THE ACTION FOR ALL THAT THIS IS A STURDY TALE MADE ENGROSSING BY KRISTIN SCOTT THOMAS'S DELICATE AND PROBING PERFORMANCE AS THE LUMINOUS SISTER GABRIEL SEAN YOUNG PLAYS A HARDPRESSED TV EXECUTIVE WHO HITS ON THE IDEA OF AIRING A LIVE EXECUTION WHILE TIM DALY STARS AS THE EXECUTEE THE FILM HAS EXCITED CHARGES OF SENSATIONALISM IT IS IN FACT A SENDUP COUPLED WITH A PLOT TURNING ON THE QUESTION OF THE DOOMED CON'S GUILT IT WOULD HAVE BEEN MORE ENTERTAINING WITHOUT THE UNDERGRADUATE WIT WHICH LIES HEAVILY OVER IT ESPECIALLY AT THE UNSPEAKABLY SILLY ENDING HERE WE HAVE A DOCUMENTARY ABOUT THE TABLOIDS BOTH TV AND PRINT AND ABOUT THE MASS MEDIA GENERALLY AS THEY FOLLOWED THE CASE OF MICHAEL JACKSON VS THE ORTHODONTIST THIS CHAPTER OF FRONTLINE POSITIVELY PALPITATES WITH SELFRIGHTEOUSNESS AS IT CARRIES ON ABOUT THE TERRIBLE TABLOIDS AND HOW THEY FED ON THE JACKSON STORY MEANWHILE OF COURSE FRONTLINE PRODUCERS HAVE CUT THEMSELVES A PIECE OF THE ACTION IN THE GUISE OF MEDIA CRITICISM CORRESPONDENT RICHARD BEN CRAMER MANAGES TO SOUND IN FACT LIKE A QUINTESSENTIAL TABLOIDTOUGH WHEN OFFERING THE CONFIDENT IF VAPID OBSERVATION THAT AUSTRALIANS ARE JUST BRITS WITH BAD ACCENTS THE NET EFFECT OF ALL THE SANCTIMONY HERE IS TO MAKE SOME OF THE TABLOID JOURNALISTS ESPECIALLY ONE ENTERPRISING BRITISH CUTTHROAT FROM THE SUN SEEM MODELS OF WHOLESOMENESS 9402100099 940210 WHO'S NEWS MORRISON KNUDSEN CORP MORRISON KNUDSEN CORP BOISE IDAHOZBIGNIEW BRZEZINSKI 65 YEARS OLD FORMER NATIONAL SECURITY ADVISER TO PRESIDENT JIMMY CARTER WAS ELECTED A DIRECTOR OF THIS ENGINEERING AND CONSTRUCTION CONCERN SUCCEEDING HAROLD ANDERSON DIRECTOR AND CONTRIBUTING EDITOR OF THE OMAHA WORLDHERALD CO WHO RETIRED IN ADDITION STEPHEN HANKS 43 FORMERLY SENIOR VICE PRESIDENT SECRETARY AND GENERAL COUNSEL WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION 9402100098 940210 LETTERS TO THE EDITOR WE WANT GOVERNMENT OUT OF OUR LIVES IN REGARD TO YOUR JAN 5 PAGEONE ARTICLE MOTLEY'S CREW A FERVENT LOBBYIST RALLIES SMALL BUSINESS TO BATTLE HEALTH PLAN IN THIS STORY OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS YOU LEFT THE IMPRESSION OF A FATCAT ORGANIZATION WHOSE LOBBYIST USES IT TO PUSH HIS PERSONAL EXTREMERIGHT POSITIONS MANIPULATING THE OPINIONS AND RESPONSES OF NFIB MEMBERS OUR BUSINESS OF 65 STAFFERS 85 BEFORE THE BUSH/CLINTON RECESSION HIT US HAS BEEN A MEMBER OF NFIB FOR ALMOST 20 YEARS ALWAYS THE NFIB APPROACH HAS BEEN TO SOLICIT OUR VIEWS THROUGH THE NFIB MANDATE REPORT BACK TO US MANDATE RESULTS AND ASK US TO RESPOND TO WASHINGTON ON VARIOUS ISSUES THE POSITIONS NFIB TAKES COME FROM OUR EXPRESSED OPINIONS WHICH DEVELOP FROM OUR CLOSE PERSONAL INVOLVEMENT IN OUR BUSINESSES WITH OUR STAFFERS WITH OUR OPPRESSIVE BUREAUCRATIC GOVERNMENT WITH REALITY YOU ALSO IMPLY THAT NFIB HAS MISLED US MEMBERS ON THE HEALTH PLAN ISSUE BY FAILING TO FULLY INFORM US OF AVAILABLE GOVERNMENT SUBSIDIES JOHN MOTLEY THE NFIB LOBBYIST WHO IS THE SUBJECT OF THE ARTICLE SAID CORRECTLY THAT THE ISSUE IS NOT ONE OF MONEY ALTHOUGH THAT IS EXTREMELY IMPORTANT THE ISSUE IS ONE OF PRINCIPLE THE GOVERNMENT ESPECIALLY THE CLINTON GOVERNMENT WANTS THE POWER OF MORE CONTROL OVER OUR LIVES AND OUR BUSINESSES WE WANT GOVERNMENT OUT OF OUR LIVES AND OUR BUSINESS IN THIS ERA OF POLITICAL CORRECTNESS WHAT ON EARTH IS WRONG WITH SOCIALIZED MEDICINE WHY DOES THE CRY SOCIALISM EVOKE SUCH AN HYSTERICAL REACTION TO ANY HEALTH CARE PROGRAM IN THE UK THE SOCIALIST GOVERNMENT AFTER WORLD WAR II INTRODUCED NATIONAL HEALTH BETWEEN 1947 AND 1949 IT WAS A FANTASTIC BOON PROVIDING THE ENTIRE POPULATION WITH HEALTH CARE FROM CRADLE TO THE GRAVE THE COST WAS THE PURCHASE OF A NATIONAL HEALTH STAMP BY THE EMPLOYER WITH THE EMPLOYEE PAYING 40 OF THE COST TAX DEDUCTIBLE ANY GOVERNMENT THAT ATTEMPTED TO REVOKE THE NATIONAL HEALTH SERVICE ACT WHETHER LABOR OR CONSERVATIVE WOULD HAVE BEEN DOOMED TO POLITICAL OBLIVION MY FATHER A CHRONIC ASTHMATIC SURVIVED DURING THE '40S ON SULFA DRUGS UNTIL AN ENGLISH SCIENTIST DISCOVERED PENICILLIN WHICH GAVE HIM A NEW LEASE ON LIFE EVERY YEAR HE HAD FLU OR PNEUMONIA LATER A COLOSTOMY AND VARIOUS OTHER MEDICAL PROBLEMS THE TREATMENT OPERATION ETC COST NOTHING I RAISED FIVE CHILDREN WITH THE USUAL MEDICAL PROBLEMS WITHOUT COST TO ME AS A SELFEMPLOYED PERSON WITH A STAFF OF FIVE I TOO PAID MY EMPLOYEES' HEALTH INSURANCE STAMPS SMALL BUSINESSES SHOULD EMBRACE SOCIALIZED MEDICINE AS A PROTECTION FOR THEMSELVES AND THEIR WORKERS THOSE WHO WANT INSURANCE PROTECTION AND CAN AFFORD TO PAY FOR IT ARE FREE TO DO SO BUT MOST OF US WISH TO BE FREE OF THE FINANCIAL PENALTY THAT IS SUCH A CRUSHING BURDEN 9402100097 940210 INTERNATIONAL JAPAN FINANCE MINISTRY TO LIFT DEBT ISSUANCE 20 IN NEXT FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S FINANCE MINISTRY PLANS TO BOOST ISSUANCE OF ITS DEBT BY MORE THAN 20 IN THE NEXT FISCAL YEAR THE MINISTRY ANNOUNCED WEDNESDAY THAT IT WILL BOOST ISSUANCE OF 10YEAR BONDS IN THE MARKET BY ABOUT 32 TRILLION YEN 2942 BILLION AND ISSUANCE IN OTHER MATURITIES BY ABOUT 436 TRILLION YEN IN THE NEXT FISCAL YEAR WHICH STARTS APRIL 1 THIS PAST FISCAL YEAR THE MINISTRY HAS ISSUED THREEMONTH AND SIXMONTH TREASURY BILLS AND TWOYEAR FOURYEAR FIVEYEAR 10YEAR AND 20YEAR PAPER THE MINISTRY WILL ADD SIXYEAR BONDS NEXT FISCAL YEAR THE SHARP BOOST IN FINANCE MINISTRY DEBT ISSUANCE FOLLOWING THE GOVERNMENT'S DECISION TO FINANCE AT LEAST TEMPORARILY A 6 TRILLION YEN CUT IN TAXES WITH BONDS LOOKS TO BRING TOTAL FLOATATIONS TO A RECORD 36531 TRILLION YEN THE MINISTRY AT THIS POINT ESTIMATES ISSUANCE FOR THIS FISCAL YEAR AT 29916 TRILLION YEN BUT THAT DOESN'T YET INCLUDE FINANCING FOR THE THIRD SUPPLEMENTARY BUDGET DUE OUT THIS WEEK A MINISTRY FINANCING AIDE TOLD REPORTERS THE BURDEN OF FINANCING ON THE MARKET WILL BE INCREASED FURTHER BY A CUTBACK IN PURCHASES BY THE FINANCE MINISTRY'S TRUSTFUND BUREAU WHICH PLANS TO SHAVE ITS BUYING BY 36 TRILLION YEN NEXT FISCAL YEAR THE TRUSTFUND BUREAU MANAGES MONEY FOR SUCH ARMS OF THE GOVERNMENT AS THE POSTAL MINISTRY'S SAVINGS AND INSURANCE ACCOUNTS AND THE HEALTH AND WELFARE MINISTRY 9402100096 940210 HADCO TO SETTLE CLAIMS IT VIOLATED STATE LAWS ON HAZARDOUS WASTES CONCORD NH NEW HAMPSHIRE'S ATTORNEY GENERAL JEFFREY R HOWARD SAID HADCO CORP AGREED TO PAY 157000 IN CONCESSIONS TO SETTLE STATE CLAIMS THAT IT VIOLATED STATE HAZARDOUSWASTE LAWS THE SETTLEMENT FOLLOWS A STATE INVESTIGATION OF A HADCO HAZARDOUSWASTE SPILL AT ITS HUDSON NH FACILITY IN MAY 1989 IN WHICH AMMONIACAL ETCH SOLUTION SPILLED INTO A STORM DRAIN LEADING TO A TRIBUTARY OF A RIVER ALTHOUGH HADCO CLEANED UP THE SPILL THE STATE FOUND HADCO VIOLATED A NUMBER OF HAZARDOUSWASTE RULES INCLUDING STORAGE DISCHARGE REPORTING AND PERSONNELTRAINING REQUIREMENTS UNDER THE TERMS OF THE SETTLEMENT UNDER WHICH HADCO ADMITS NO LIABILITY THE COMPANY WILL PAY 30000 IN CASH TO THE STATE'S HAZARDOUSWASTE CLEANUP FUND AND SPEND AT LEAST 126700 ON POLLUTIONPREVENTION PROJECTS OVER THE NEXT YEAR HADCO OFFICIALS WEREN'T AVAILABLE TO COMMENT HADCO IN SALEM NH MAKES PRINTED CIRCUIT BOARDS 9402100095 940210 PEPPERAND SALT AD MEN MAKE A KILLING AND INCOME'S LABELED BILLING JUST PUT UP FOR REVIEW END UP THE SAME WAY DO MAKE LITTLE WAVES 9402100094 940210 LEISURE & ARTS FILM GETTING AWAY' AGAIN MORE VIOLENTLY BY JULIE SALAMON THE DIRECTOR ROGER DONALDSON EXPLAINS THE DISTINCT ADVANTAGE TO REMAKING A FILM YOU HAVE A ROUGH BLUEPRINT TO WORK FROM AND WHAT IS GREAT IS THAT YOU CAN RELY UPON THE STRONGEST ELEMENTS OF THE ORIGINAL AND IMPROVE UPON THE WEAKER ONES I WONDER WHICH ELEMENTS OF THE 1972 FILM THE GETAWAY HE FELT HE WAS MERELY RELYING ON AND WHICH HE FELT WERE BEING IMPROVED AS HE MADE THE GETAWAY AGAIN HE HAS CERTAINLY RELIED ON THE MEAN AND VIOLENT SPIRIT OF THE ORIGINAL THE IMPROVEMENTS ARE MORE DIFFICULT TO FIND MR DONALDSON A TALENTED DIRECTOR HAS MADE A FILM THAT MANAGES TO BE EVEN MORE MEAN AND MORE VIOLENT THAN THE ORIGINAL YET MORE WISHYWASHY TOO BOTH MOVIES ARE ABOUT A CRIMINAL NAMED DOC MCCOY WHO GETS SPRUNG FROM JAIL AFTER HIS WIFE CAROL SLEEPS WITH A POWERFUL MAN TO ARRANGE HER HUSBAND'S RELEASE THE HUSBAND'S SUBSEQUENT JEALOUSY LEADS TO THE VIOLENT DEATH OF THE POWERFUL MAN AND TO MANY OTHER KILLINGS THE HUSBAND AND WIFE GET AWAY WITH THEIR LIVES AND WITH THE MONEY THEY'VE STOLEN IN A MAJOR HEIST BOTH FILMS CONTAIN A SUBPLOT ABOUT A SADISTIC KILLER WHO KIDNAPS A MARRIED COUPLE AND HUMILIATES THE MAN BY HAVING GLEEFUL SEXPLAY WITH HIS WIFE IN FRONT OF HIM BOTH MOVIES HAVE STARS WHO WERE OR WOULD BECOME MARRIED TO ONE ANOTHER IN REAL LIFE STEVE MCQUEEN AND ALI MACGRAW THEN ALEC BALDWIN AND KIM BASINGER NOW BOTH MOVIES ARE ALSO BASED ON A NOVEL BY JIM THOMPSON THE WRITER WHO SPECIALIZED IN HARD CYNICAL CRIME STORIES THAT CYNICISM OF DESPAIR WAS CHANGED IN BOTH MOVIES TO THE CYNICISM OF HOLLYWOOD WHICH DICTATES THAT EVEN THE MOST VICIOUS CRIMINALS MUST BE LIKABLE IF THEY ARE THE STARS OF A MOVIE HOWEVER THE NEW VERSION CARRIES THIS PSEUDOPRINCIPLE TO A RIDICULOUS EXTREME DOC NO LONGER SMACKS CAROL AROUND THEY ARE NOW SENSITIVE PEOPLE WHO WANT TO GO STRAIGHT JUST AS SOON AS THEY GET ACROSS THE MEXICAN BORDER WITH THE VAST SUMS OF MONEY THEY'VE STOLEN IN FACT WE ARE MEANT TO BELIEVE THEY ARE ACTUALLY GOOD AFTER ALL THE ONLY PEOPLE THEY KILL AND THEY KILL MANY ARE SCUMBUCKETS WE ARE SUPPOSED TO BELIEVE THIS EVEN AFTER DOC BRUTALLY BEATS UP A SMALLTIME THIEF BECAUSE WHILE HE IS AT WORK BURGLING TRAIN STATION LOCKERS HE STUMBLES ONTO DOC AND CAROL'S BAG OF LOOT SO THE UPDATED DOC AND CAROL ARE IN THE EYES OF THE FILMMAKERS EVEN NICER THAN THEIR FORERUNNERS THIS MORAL UPGRADE IS UNDOUBTEDLY ONE OF THE IMPROVEMENTS MR DONALDSON REFERRED TO WHAT WERE THE OTHER REFINEMENTS ADDED TO MAKE THIS PICTURE ACCEPTABLE TODAY IN 1972 IT WAS ACCEPTABLE FOR ALI MACGRAW TO BE A BIMBO AND FOR STEVE MCQUEEN TO WHACK HER IN THE FACE WHEN SHE SAID STUPID THINGS IN 1994 THIS IS NOT ACCEPTABLE CAROL HAS BEEN GIVEN A MUCH BIGGER ROLE SHE IS NOW ASSIGNED TO THE CRUCIAL TASKS OF DRIVING CARS AND KILLING IN 1972 BACK WHEN MOVIE DISTRIBUTORS WANTED PG RATINGS IT WAS UNACCEPTABLE FOR MOVIE STARS TO HAVE SEX ONSCREEN NOW THANKS TO THE NEW IMPROVED GETAWAY WE DON'T HAVE TO IMAGINE WHAT MR BALDWIN AND MS BASINGER DO WITH ONE ANOTHER WHEN THEIR WORKDAY IS DONE IT IS A BUSY MARRIAGE THE SCENT OF GREEN PAPAYA IS WORLDS APART FROM THE GETAWAY IN ALMOST EVERY WAY EXCEPT ONE LIKE ROGER DONALDSON THE DIRECTOR TRAN ANH HUNG HAS A BIG CINEMATIC GIFT BUT HE HAS USED IT TO SEDUCE NOT TO BLUDGEON THE 32YEAROLD MR TRAN WHO MOVED TO FRANCE FROM VIETNAM WHEN HE WAS A BOY WANTED TO MAKE A FILM ABOUT HIS BIRTHPLACE THAT WASN'T ABOUT THE VIETNAM WAR HIS EXQUISITE MOVIE ABOUT A LOST VIETNAM SEEMS ESPECIALLY VALUABLE NOW AS COKE AND PEPSI BATTLE MINH CITY AND SAIGON THE SCENT OF GREEN PAPAYA IS ABOUT A BOURGEOIS HOUSEHOLD IN THE SAIGON OF 1951 AS SEEN THROUGH THE EYES OF A YOUNG GIRL NAMED MUI WHO COMES TO WORK THERE WHEN SHE IS 10 AT FIRST SHE THINKS IT MAY BE PARADISE AS SHE MARVELS AT THE PAPAYA TREE OUT HER WINDOW OR THE STRUGGLE OF AN ANT TO MOVE A CRUMB FROM HERE TO THERE THERE ARE MANY OTHER NATURAL AND MANMADE WONDERS IN THIS BEAUTIFUL PLACE A MANYTIERED HOUSE SMALL COURTYARDS LUSH TROPICAL PLANTS IT SEEMS PEACEFUL TOO ONLY THE SOUNDS OF BIRDS OF CRICKETS AND THE STRINGED INSTRUMENT THE MAN OF THE HOUSE IS CONSTANTLY PLAYING DISTURB THE QUIET BUT IT SOON BECOMES APPARENT THAT THERE ARE INNER DISTURBANCES UPSTAIRS THE GRANDMOTHER CONSTANTLY PRAYS FOR HER DEAD HUSBAND AND DEAD GRANDCHILD A LITTLE GIRL WHO WOULD BE MUI'S AGE HAD SHE LIVED THE MAN OF THE HOUSE NEVER LEAVES BECAUSE OF THE EVIL HE'S DONE AND THE EVIL HE THINKS HE'S DONE THE LADY OF THE HOUSE SUFFERS BUT IS UNFAILINGLY KIND TO MUI HER YOUNGER SONS REACT TO THE UNSPOKEN TENSION WITH SMALL CRUELTIES TOWARD INSECTS AND SERVANTS WITH SENSUOUS GRACE THE SCENT OF GREEN PAPAYA CAPTURES THIS HOTHOUSE LIFE BOTH THE BEAUTY AND THE ROT WITHIN VIDEO TIP ALEC BALDWIN IS NOT AN IMPROVEMENT OVER STEVE MCQUEEN YOU CAN VERIFY THIS BY WATCHING THE ORIGINAL OF THE GETAWAY IF YOU MUST BUT YOU CAN DO MUCH BETTER STARTING WITH THE ULTIMATE COOL MCQUEEN IN THE CINCINNATI KID HE COULD BE GLAMOROUS TOO THE THOMAS CROWN AFFAIR HE COULD BE TOUGH BULLITT AND HE WAS A VERY GOOD COWBOY THE MAGNIFICENT SEVEN 9402100093 940210 WHO'S NEWS CONNER PERIPHERALS INC CONNER PERIPHERALS INC SAN JOSE CALIF JOHN SQUIRES 46YEAROLD COFOUNDER EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THIS MAKER OF DISK DRIVES RESIGNED TO PURSUE OTHER INTERESTS MR SQUIRES HAD BEEN ON SABBATICAL SINCE LAST SUMMER 9402100092 940210 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO AS GUNSWAP PROGRAMS PROLIFERATE WILL CORPORATE SUPPORT LAST THE SUCCESS OF NEW YORK'S TOYSFORGUNS EXCHANGE IN DECEMBER PROMPTS A SLEW OF SIMILAR PROGRAMS AIDED BY RETAILERS LIKE TOYS R US AND CALDOR AND EVEN THE NEW JERSEY NETS BASKETBALL TEAM THERE'S MORE MILEAGE LEFT IN THIS FORM OF CAUSEORIENTED MARKETING SAYS GARY STIBEL OF NEW ENGLAND CONSULTING GROUP IN CONNECTICUT HE SAYS MORE MANUFACTURERS WILL GET INVOLVED THEY GENERALLY HELD BACK FROM THE FIRST CROP OF PROGRAMS BECAUSE THEY DON'T READILY HAVE THE CHANNELS FOR MAKING THE SWAPS SUPERMARKET COMPANY GREAT ATLANTIC & PACIFIC TEA WHICH DONATED TO THE NEW YORK PROGRAM SAYS IT WILL CONSIDER BACKING SWAPS ELSEWHERE IT'S A WAY TO PARTICIPATE IN THE COMMUNITY A SPOKESMAN SAYS OTHERS SEE THE BANDWAGON EVENTUALLY SLOWING POSSIBLY NEXT YEAR BY THEN PROGRAMS WILL BE SPEAKING TO PEOPLE WHO WON'T BE LISTENING SINCE THOSE WILLING TO SWAP WOULD ALREADY HAVE DONE SO MR STIBEL SAYS MEANWHILE FERNANDO MATEO THE BUSINESSMAN WHO RUNS THE NEW YORK PROGRAM SAYS FUNDING IS RUNNING OUT VIRTUAL BILLBOARDS VIDEO TECHNOLOGY INSERTS SIGNS INTO LIVE SPORTS BROADCASTS THE BALTIMORE ORIOLES WEIGHS PUTTING BILLBOARDS IN SUCH ONCESACROSANCT SPOTS AS BEHIND HOME PLATE BUT PLAYERS AND FANS IN THE STADIUM WON'T SEE THEM THE SIGNS WOULD BE INSERTED INTO BROADCASTS VIA A VIDEO PROCESSOR LEASED FROM NEW JERSEY'S PRINCETON ELECTRONIC BILLBOARD INC THE TECHNOLOGY HASN'T BEEN TESTED ON THE AIR YET AND THE MACHINES WON'T ROLL OFF THE PRODUCTION LINE UNTIL MARCH STILL THE ORIOLES' DAVID COPE THINKS IT'S POSSIBLE THE TECHNOLOGY CAN BE READY BY OPENING DAY WE MIGHT SELL SPOTS FOR HALF INNINGS HE SAYS IT MAY BE A NEW AVENUE FOR REVENUE GROWTH SAYS JAMES HEALEY OF THE BOSTON RED SOX MEANWHILE BRYAN BURNS OF PARAGON ALLIANCE A NEW YORK CONSULTANT LOOKS AT USING THE TECHNOLOGY FOR A SPORTS BROADCAST FROM ABROAD THE ATTRACTION IT CAN REPLACE FOREIGN SIGNS WITH ONES THAT ARE MORE USORIENTED US CRAFT COMPANIES SEEK TO CUT A WIDE SWATH OVERSEAS MAKERS OF CRAFT ITEMS LIKE JEWELRYMAKING KITS ARE BUILDING UP THEIR EXPORT BUSINESS EVEN AS US SALES STAY STRONG KENTUCKY'S CERAMICHROME A CERAMIC AND PAINT MAKER SAYS 25 OF ITS 1993 SALES WERE MADE OVERSEAS LAST YEAR IT HIRED A MANAGER JUST TO HANDLE SALES TO SPANISHSPEAKING COUNTRIES EZ INTERNATIONAL A NEW JERSEY QUILTINGKIT SUPPLIER PLANS TO USE MULTILINGUAL PACKAGING THIS YEAR FOR EXPORTS TO EUROPE THE COMPANIES ARE JUMPING AT THE CHANCE TO GRAB FOOTHOLDS IN MARKETS WHERE DEMAND IS RISING AND COMPETITION SCARCE THE MARKET ABROAD HAS TO DO A LOT OF CATCHING UP WITH THE US SAYS AL SEIFERT OF GREENE PLASTICS A RHODE ISLAND BEAD FIRM MIKE HARNETT OF CRAFT TRENDS MAGAZINE NILES ILL SAYS THE FIRMS ALSO ARE HEDGING THEIR BETS AS US CRAFT RETAILERS CONSOLIDATE HERE YOU'RE PUTTING YOUR FATE IN THE HANDS OF JUST A DOZEN BUYERS HE SAYS THE HOBBY INDUSTRIES OF AMERICA A TRADE GROUP WILL HOLD ITS FIRST OVERSEAS CRAFT SHOW IN THE NETHERLANDS IN 1995 HOSPITALS ARE HEALTHIER SAYS MODERN HEALTHCARE MAGAZINE IN CHICAGO COMPARING FISCAL 1993 AND 1992 FIGURES OF 311 HOSPITALS IT SAYS THE MEDIAN PROFIT MARGIN ROSE TO 476 FROM 442 DUE PARTLY TO HIGHER REVENUES AND SLOWER GAINS IN EXPENSES STUDENT HEAL THYSELF LEHIGH UNIVERSITY BETHLEHEM PA TRIMS HEALTHCENTER COSTS WITH A COMPUTER PROGRAM THAT HELPS STUDENTS TREAT THEMSELVES FOR MINOR AILMENTS LIKE COLDS AND RASHES LEHIGH WHICH PLANS TO SELL THE PROGRAM TO OTHER CAMPUSES SAYS SELFTREATMENT COSTS 1 A STUDENT VS 15 FOR A VISIT WITH A DOCTOR CORPORATE CUSTOMERS PAID UP FASTER LAST YEAR SAYS MIDCONTINENT AGENCIES INC AN ILLINOIS COLLECTIONS FIRM IN A POLL OF 278 CREDIT MANAGERS 394 SAID DAYS SALES OUTSTANDING THE TIME IT TAKES TO COLLECT ON A BILL FELL IN THE LAST HALF OF 1993 FROM A YEAR EARLIER COMPARED WITH 271 WHO SAID THE NUMBER OF DAYS ROSE RADARDETECTOR BAN FOR TRUCKERS PUTS A BRAKE ON SALES BUT NOT EVERYWHERE IN ONTARIO CALIF RETAILER TRUCKSTOPS OF AMERICA'S DETECTOR SALES HAVE DRIED UP SINCE THE JAN 19 FEDERAL BAN ON THE GADGETS IN TRUCKS AND OTHER COMMERCIAL VEHICLES THE TRUCK STOP NOW TRIES TO SELL THE DEVICES TO CAR DRIVERS BONNIE & CLYDE'S CB AND STEREO IN DALLAS SAYS SALES WERE HALVED BUT IT'S NOT AS BAD AS WE THOUGHT SAYS SALESMAN PAUL GARZA SOME TRUCKERS ARE GOING TO BUY REGARDLESS INDEED AT TRUCKSTOPS OF AMERICA'S MESQUITE TEXAS OUTLET THE BAN BOOSTED SALES IN PRICIER DETECTORS WITH STEALTH FEATURES THAT MAKE THEM UNDETECTABLE THE STORE USED TO SELL ONE OR TWO A WEEK OF SUCH MODELS SAYS MANAGER DON RIGHTMYER IN THE PAST FEW DAYS IT HAS SOLD SEVERAL TONY MIRABELLI OF DETECTOR MAKER UNIDEN AMERICA IN FORT WORTH TEXAS SAYS ORDERS FOR SCANNERS THAT SPOT POLICE FREQUENCIES HAVE RISEN ABOUT 15 IN THE PAST MONTH IN DOLLAR TERMS TRUCKERS ACCOUNT FOR ABOUT 18 OF THE 250 MILLION DETECTOR MARKET SAYS DON RICH OF BEL TRONICS A COVINGTON GA MANUFACTURER BRIEFS IT WAS JUST A MATTER OF TIME PR PRACTITIONERS CAN SCHMOOZE ONLINE WITH PRFORUM AN ELECTRONICMAIL NETWORK STARTED BY INDIANA UNIVERSITY IN INDIANAPOLIS FOR ANOTHER FORM OF NEWSSHARING CLEARBLUE EASY PREGNANCYTEST KITS COME WITH NUMBERS THAT ALLOW USERS FIVE MINUTES OF FREE PHONE CALLS 9402100091 940209 TEXAS JOURNAL HEARD IN TEXAS SURETY CAPITAL IGNORED BY ANALYSTS MAY BE POISED FOR RAPID GROWTH BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL HURST SURETY CAPITAL IS THE JACKALOPE OF THE TEXAS BANKING INDUSTRY A HYBRID CREATURE THAT FEW HAVE EVER SEEN NEITHER A PUREBRED BANK NOR A TRADITIONAL FINANCE INSTITUTION SURETY CAPITAL HAS CARVED A NICHE AS A SPECIALTY LENDER THAT FINANCES INSURANCE PREMIUMS OFFERS SECURED CREDIT CARDS AND MAKES A MARKET BUYING INSURANCE CLAIMS OWED TO DOCTORS' OFFICES SURETY HAS BUILT ITSELF ONE OF THE BANKING WORLD'S MOST ENVIABLE INTERESTRATE SPREADS THE DIFFERENCE BETWEEN THE RATE PAID ON DEPOSITS AND THE RATE IMPOSED FOR LOANS A KEY MEASURE OF A BANK'S PROFITABILITY SURETY'S AVERAGE SPREAD OF 727 PERCENTAGE POINTS IN 1993 RANKS AS ONE OF THE BEST AMONG THE ROUGHLY 1200 BANKS IN TEXAS AND IS IN THE TOP 10 NATIONALLY EVEN MORE AMAZING IS ITS RETURN ON ASSETS A STAGGERING 12 IN AN INDUSTRY WHERE 1 IS CONSIDERED HEALTHY PROBLEM IS FEW OUTSIDE OF THE COMPANY EVEN KNOW THIS COMPANY EXISTS NO ANALYSTS WHO TRACK SURETY'S EXPLOITS COULD BE FOUND THE COMPANY'S STOCK A NASDAQ SMALLCAPITALIZATION ISSUE BASICALLY TRADES BY APPOINTMENT ONLY WITH A SCANT 4160 SHARESADAY AVERAGE TRADING VOLUME BUT THE MEAGER BAND OF FANS FAMILIAR WITH SURETY SAY THIS 50 MILLIONINASSETS BANKING CONCERN IS POISED FOR GROWTH THAT WITHIN THE YEAR COULD TRIPLE THE VALUE OF ITS SHARES WHICH CURRENTLY TRADE AT AROUND 325 ITS YEARLY LOW THEY ARE MASTERS AT NICHE BANKING AND GROWING AGGRESSIVELY SAYS JEFFREY STONE PRESIDENT OF STONE ASSET MANAGEMENT IN DALLAS AT THIS PRICE THEY CERTAINLY WARRANT A BUY BUYING HOWEVER ISN'T WHAT MOST HAVE BEEN DOING WITH SURETY'S SHARES DESPITE STRONG EARNINGS FOR 1993 19 CENTS A SHARE COMPARED WITH ZERO EARNINGS THE YEAR BEFORE AND ESTIMATES THAT THE COMPANY WILL DOUBLE ITS PERSHARE PROFIT THIS YEAR SHORT SELLERS HAVE BEEN HOUNDING SURETY STOCK HELPING TO DRIVE THE PRICE DOWN IN THE PAST YEAR FROM A HIGH APPROACHING 11 ADJUSTED FOR A 1FOR10 REVERSE STOCK SPLIT LAST SUMMER TRADERS SAY THE SHORTS WHO BORROW SHARES AND IMMEDIATELY SELL THEM HOPING TO REPLACE THEM LATER AT A LOWER PRICE AND THUS POCKET THE DIFFERENCE ARE BANKING THAT SURETY'S INSURANCEPREMIUM FINANCING BUSINESS WHICH ACCOUNTS FOR ABOUT ONETHIRD OF THE COMPANY'S REVENUE COULD BE HARD HIT BY THE CLINTON HEALTHCARE SYSTEM WHICH HOPES TO IMPLEMENT UNIVERSAL COVERAGE A CONCEPT THAT WOULD MEAN FEWER INDIVIDUALS FINANCING THEIR INSURANCE PREMIUMS BUT THERE'S A HUGE FLAW IN THAT REASONING SURETY DOESN'T FINANCE HEALTHCARE PREMIUMS FOR INDIVIDUALS IT FINANCES PROPERTY AND CASUALTYINSURANCE PREMIUMS FOR BUSINESSES BECAUSE THERE'S NO ONE FOLLOWING THE COMPANY A LOT OF PEOPLE HAVE A MISCONSTRUED NOTION OF WHAT SURETY DOES SAYS LAUREL MILLER A BROKER AT DALLAS RESEARCH & TRADING A MARKET MAKER FOR SURETY'S STOCK HERE'S WHY THOSE WHO KNOW ABOUT SURETY ARE BOOSTERS THE COMPANY'S INSURANCE PREMIUMLOAN PORTFOLIO HAS GROWN TO MORE THAN 16 MILLION FROM 1 MILLION IN 1987 THOSE LOANS CARRY BIG ANNUAL INTEREST RATES OF 6 TO 31 WITH THE AVERAGE YIELD TOPPING 13 YEARLY LOSSES HAVE BEEN LESS THAN 05 IN ITS MEDICALFACTORING BUSINESS SURETY BUYS INSURANCE CLAIMS OWED TO MEDICAL OFFICES AND HOSPITALS TYPICALLY ADVANCING 50 OF THE CLAIM VALUE WHEN THE INSURANCE COMPANY PAYS OFF USUALLY WITHIN 30 TO 60 DAYS SURETY TAKES ITS FEE OF 2 THEN FORWARDS THE BALANCE TO THE MEDICAL OFFICE SINCE SURETY ONLY BUYS CLAIMS ALREADY APPROVED FOR PAYMENT BY INSURANCE FIRMS THE COMPANY SAYS IT HAS NEVER EXPERIENCED A CREDIT LOSS YIELDS HAVE EXCEEDED 25 ANNUALLY HEALTHCARE REFORM WHICH MANY ARGUE WILL RESULT IN EVEN LONGER PROCESSING TIMES FOR CLAIMS JUST MEANS AN INCREASE IN BUSINESS FOR US SAYS SURETY CHAIRMAN AND CHIEF EXECUTIVE OFFICER C JACK BEAN SURETY ALSO HAS HAD ZERO LOSSES ON THE SECURED CREDIT CARDS IT OFFERS WHICH CARRY AN ANNUAL RATE OF 179 AND ARE BACKED BY A MANDATORY SAVINGS ACCOUNT AT ONE OF THE COMPANY'S SURETY BANK BRANCHES SURETY WITH SINGLE BRANCHES IN HURST CHESTER LUFKIN AND WELLS ALSO MAKES TRADITIONAL CONSUMER AND COMMERCIAL LOANS WHICH GENERATE ABOUT ONETHIRD OF ITS REVENUE THE TWO PROBLEMS SURETY FACES ARE INTEREST RATES INCHING BACK UP AND LACK OF ADEQUATE CAPITAL TO CONTINUE GROWING INTEREST RATES MR STONE CONTENDS DON'T POSE A SERIOUS THREAT THOUGH THE SPECTER OF INFLATION WOULD BUFFET THE STOCK MARKET PARTICULARLY SMALLCAPITALIZATION ISSUES SUCH AS SURETY BUT SURETY HAS SOMETHING OF A SECRET WEAPON WHERE ITS PEERS HOLD LOANS THAT MATURE YEARS HENCE SURETY'S INSURANCEPREMIUM FINANCING LOANS EXTEND FOR EIGHT OR NINE MONTHS MAXIMUM MEDICALFACTORING LOANS ARE OUTSTANDING FOR ONE OR TWO MONTHS THUS SURETY CAN QUICKLY ADJUST TO INTERESTRATE INCREASES AS FOR GROWTH THE COMPANY IS CONSTRAINED BY A LACK OF ASSETS FIFTY MILLION MR BEAN CONCEDES ONLY GOES SO FAR BUT SURETY IS IN THE MIDST OF AN AGGRESSIVE PROGRAM TO EXPAND ITS ASSETS TO 500 MILLION BY 1998 THE COMPANY CURRENTLY HAS IN ITS SIGHTS THREE SMALL COUNTRY BANKS IT WANTS TO BUY IN 1994 THOSE ACQUISITIONS WOULD BOOST ASSETS TO 75 MILLION SURETY TARGETS SMALL BANKS WITH TINY LOANTODEPOSIT RATIOS THAT ALLOWS THE COMPANY TO FUNNEL THE SURPLUS ASSETS INTO ITS NICHEBANKING SERVICES YEAR ENDED DEC 31 1993 FOURTH QUARTER ENDED DEC 31 1993 JANUARY WAS A GOOD MONTH FOR TESORO PETROLEUM SHARES OF THE SAN ANTONIO COMPANY LEAD THE LIST OF TEXAS STOCKS WITH THE LARGEST YEARTODATE GAIN UP MORE THAN 88 TO 10375 LAST WEEK THE COMPANY REPORTED NET INCOME OF 166 MILLION OR 1 A SHARE FOR THE FOURTH QUARTER COMPARED WITH A LOSS OF 249 MILLION OR 193 A SHARE IN THE YEAREARLIER PERIOD TESORO'S STOCK PRICE BEGAN RISING IN MIDJANUARY ON NEWS THAT BROKER/DEALERS LOEB PARTNERS AND LOEB ARBITRAGE FUND OF NEW YORK ACQUIRED A 54 STAKE IN THE COMPANY CNBC FINANCIAL CORRESPONDENT DAN DORFMAN ALSO NOTED LAST WEEK THAT TESORO IS RIPE FOR AN EARNINGS BLOWOUT SHARES OF LA QUINTA MOTOR INNS SAN ANTONIO INCREASED 116 TO 3475 AND TRADED MORE THAN FOUR TIMES THEIR AVERAGE DAILY VOLUME AFTER THE COMPANY SAID ITS BOARD AUTHORIZED A REPURCHASE OF AS MUCH AS 10 MILLION IN COMMON STOCK VTEL OF AUSTIN DROPPED 24 TO 5625 ON NEWS THAT THE COMPANY EXPECTS PERSHARE LOSSES OF 26 CENTS TO 29 CENTS FOR 1993'S FOURTH QUARTER PRIMARILY BECAUSE OF LOWERTHANANTICIPATED REVENUE AND GROSS PROFIT MARGINS VTEL POSTED PROFIT OF 69 MILLION OR ONE CENT A SHARE THE SAME QUARTER A YEAR AGO LANDRY'S THE HOUSTONBASED SEAFOOD CHAIN TRADED TRIPLE ITS AVERAGE VOLUME LOSING 3125 A SHARE AFTER POSTING STRONGER EARNINGS THAN ANALYSTS ESTIMATED FOR THE FOURTH QUARTER LANDRY'S REPORTED NET INCOME OF 518000 OR 9 CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF 8 CENTS A SHARE A YEAR AGO LANDRY'S REPORTED EARNINGS OF 272000 OR 6 CENTS A SHARE EXCLUDING A GAIN FOR EARLY RETIREMENT OF DEBT SURETY CAPITAL CORP'S RETURN ON ASSETS WAS 076 IN 1993 BECAUSE OF INCORRECT INFORMATION PROVIDED BY THE COMPANY SURETY'S RETURN ON ASSETS WAS MISSTATED AS 12 IN A TEXAS JOURNAL ARTICLE LAST WEDNESDAY 9402100090 940210 FOREIGN EXCHANGES DOLLAR RETREATS AGAINST YEN ON FEARS USJAPAN TRADE PACT TO STAY ELUSIVE BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RETREATED AGAINST THE YEN YESTERDAY AMID FEARS THAT A USJAPAN TRADE ACCORD WON'T BE REACHED IN TIME FOR THE SUMMIT BETWEEN PRESIDENT CLINTON AND JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA TOMORROW THE DOLLAR WAS CHOPPED LOWER IN ASIAN TRADING ON A STATEMENT BY MR HOSOKAWA CONFIRMING THAT TRADE TALKS HAD STALLED AND RAISING THE SPECTER OF MORE US PRESSURE FOR A STRONG YEN WHEN THE FLAGGING JAPANESE ECONOMY CAN ILLAFFORD IT BUT THE SLIDE WAS REVERSED LATE IN NEW YORK TRADING ON STATEMENTS BY UNIDENTIFIED US TREASURY OFFICIALS WHO DISMISSED SUGGESTIONS THAT THE US WOULD TALK UP THE YEN SHOULD THE TRADE TALKS INDEED COLLAPSE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17585 MARKS DOWN FROM 17640 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10835 YEN DOWN FROM 10875 YEN STERLING WAS TRADING AT 14615 DOWN FROM 14665 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10820 YEN AND AT 17570 MARKS TRADERS SAID THE DOLLAR IS UNLIKELY TO ADVANCE AGAINST THE YEN UNLESS JAPAN SHOWS MORE WILLINGNESS TO BREAK DOWN TRADE BARRIERS AND STIMULATE CONSUMER DEMAND AFTER THE DROP FOLLOWING MR HOSOKAWA'S COMMENTS THE DOLLAR SLID FURTHER ON NEWS THAT DEPUTY PRIME MINISTER TSUTOMO HATA WAS BEING SENT TO WASHINGTON A DAY EARLY TO TRY TO SALVAGE AN AGREEMENT THIS MOVE WAS PERCEIVED BY TRADERS AS ANOTHER SIGN OF DESPERATION THE CLINTON ADMINISTRATION SAID LATER THAT IN VIEW OF MR HATA'S VISIT FOR DIRECT TALKS WORKINGLEVEL NEGOTIATIONS WERE BEING SUSPENDED AS BEING ESSENTIALLY USELESS THE DOLLAR REACHED AN INTRADAY LOW OF 10773 YEN BASED ON THOSE REPORTS AND IT CONTINUED TO SKID JUST ABOVE THOSE LOWS UNTIL THE CONCILIATORY REMARKS WERE MADE BY THE US TREASURY OFFICIALS THE DOLLAR HAD RETREATED SINCE EARLY JANUARY ON ANY INDICATION THAT THE US IS DISPLEASED WITH JAPAN'S PROGRESS IN CURBING ITS HUGE TRADE SURPLUS BUT WITH A PLETHORA OF OFTEN CONTRADICTORY STATEMENTS YESTERDAY DOLLARYEN MOVEMENTS REMAINED IN FAIRLY TIGHT RANGES SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER OF THE LONGTERM CREDIT BANK OF JAPAN IN NEW YORK YOU GET THE IMPRESSION FROM HEADLINES THAT THE TALKS AREN'T GOING WELL BUT THEN YOU HAVE PEOPLE SAYING ITS PART OF THE POSTURING AND BLUFFING THAT TAKES PLACE IN ALL NEGOTIATIONS MR PETTIT SAID HE NOTED THERE ARE MAJOR PROBLEMS IN EVALUATING DOLLARYEN MOVEMENTS PRIOR TO ANY DEFINITIVE OUTCOME IN THE TRADE TALKS THE FIRST PROBLEM IS WE AREN'T SURE TO WHAT DEGREE THERE'S STILL POSTURING AND TO WHAT DEGREE THERE IS A PROGRESS HE SAID THE SECOND PROBLEM IS THAT THERE IS ABSOLUTELY NO PRECEDENT TO IMAGINE THE CONSEQUENCES OF A FAILURE MR PETTIT SAID HE CONSIDERED IT UNLIKELY THAT THE CLINTON ADMINISTRATION WOULD PUT MR HATA IN AN 'UNTENABLE POSITION FROM A NEGOTIATING POINT OF VIEW BUT IN A NEWS BRIEFING LATE YESTERDAY US TRADE REPRESENTATIVE MICKEY KANTOR HELD OUT ONLY MODERATE HOPE THAT A SATISFACTORY AGREEMENT WILL BE REACHED WE MAY OR MAY NOT REACH AGREEMENT FRIDAY HE SAID MR KANTOR REITERATED THAT THE US WILL WEIGH ITS OPTIONS IF AN AGREEMENT ISN'T REACHED ON US AUTOS AND AUTO PARTS ACCESS TO JAPAN'S INSURANCE MARKET AND LIBERALIZATION OF GOVERNMENT PROCUREMENT POLICIES NOR DID HE RULE OUT THE POSSIBILITY OF TRADE SANCTIONS SHOULD THE JAPANESE PROVE INTRACTABLE 9402100089 940210 BUSINESS BRIEF HOSPITAL STAFFING SERVICES INC ONGOING BASE OF BUSINESS REMAINS SOUND' FIRM SAYS HOSPITAL STAFFING SERVICES INC SAID IN RESPONSE TO A SECURITIES AND EXCHANGE COMMISSION FILING MADE BY A SHAREHOLDER GROUP LED BY NUMED HOME HEALTH CARE INC THAT THE ONGOING BASE OF ITS BUSINESS REMAINS SOUND A GROUP LED BY NUMED BASED IN INDEPENDENCE OHIO SAID IN THE FILING THAT IT IS SEEKING TO OUST A MAJORITY OF THE DIRECTORS OF HOSPITAL STAFFING AND ULTIMATELY REMOVE SOME OF THE COMPANY'S SENIOR MANAGERS IN A JAN 18 LETTER TO THE COMPANY THE NUMED GROUP CITED WHAT IT CALLED THE EXTREMELY POOR PERFORMANCE OF HOSPITAL STAFFING UNDER ITS CURRENT MANAGEMENT HOSPITAL STAFFING BASED IN FORT LAUDERDALE FLA COUNTERED THAT IT IS CONTINUING TO MOVE FORWARD WITH PROGRAMS AIMED AT RESTORING LONGTERM GROWTH IMPROVING OUR OPERATING RESULTS AND INCREASING SHAREHOLDER VALUE 9402100088 940210 WHO'S NEWS FIRST INTERSTATE BANCORP FIRST INTERSTATE BANCORP LOS ANGELES THIS BANK'S UNIT FIRST INTERSTATE BANK OF CALIFORNIA NAMED EARL JAMES CALLISON 34 YEARS OLD SENIOR VICE PRESIDENT AND MANAGER NORTHERN CALIFORNIA REAL ESTATE MR CALLISON WAS PREVIOUSLY VICE PRESIDENT AND MANAGER OF THE COMPANY'S REALESTATE CENTER IN CONCORD CALIF 9402100087 940209 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 9402100086 940210 WHO'S NEWS ALEXANDER HAAGEN PROPERTIES INC ALEXANDER HAAGEN PROPERTIES INC MANHATTAN BEACH CALIF FIVE NEW DIRECTORS WERE ELECTED AT THIS REALESTATE INVESTMENT TRUST INCREASING THE BOARD'S SIZE TO NINE MEMBERS THEY ARE TOM BRADLEY 76 YEARS OLD WHO WAS MAYOR OF LOS ANGELES FROM 1973 TO 1993 R BRUCE ANDREWS 53 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NATIONWIDE HEALTH PROPERTIES INC WARREN FIX 55 A PARTNER IN THE CONTRARIAN GROUP AN INVESTMENT AND MANAGEMENT FIRM WARNER HEINEMAN 71 A SENIOR ADVISER AT FIRST BUSINESS BANK FRED L RIEDMAN 63 A PARTNER IN THE LAW FIRM OF RIEDMAN DALESSI & DYBENS 9402100085 940210 WHO'S NEWS TRW INC TRW INC CLEVELAND EDSEL D DUNFORD 58 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PROVIDER OF HIGHTECHNOLOGY PRODUCTS AND SERVICES FOR THE AUTOMOTIVE AEROSPACE DEFENSE AND INFORMATION MARKETS SAID HE PLANS TO RETIRE AT THE END OF 1994 PETER S HELLMAN 44 IS EXPECTED TO SUCCEED MR DUNFORD AT THE END OF THE YEAR MR HELLMAN WAS NAMED TO THE TRANSITIONAL POSITION OF EXECUTIVE VICE PRESIDENT AND ASSISTANT PRESIDENT EFFECTIVE MARCH 1 HE IS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALSO RONALD D SUGAR 45 CURRENTLY VICE PRESIDENT OF GROUP DEVELOPMENT OF TRW SPACE & ELECTRONICS GROUP ONE OF THE COMPANY'S SEVEN MAIN BUSINESS GROUPS WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE APRIL 1 HE WILL SUCCEED MR HELLMAN 9402100084 940210 FORD REPORTS STRONG PROFIT BUT STOCK FALLS INVESTORS WEREN'T SATISFIED WITH FOURTHQUARTER EARNINGS OF 719 MILLION BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO REBOUNDED STRONGLY IN THE FOURTH QUARTER FROM A YEAREARLIER LOSS BUT ITS STOCK SLID BECAUSE INVESTORS WERE LOOKING FOR EVEN BETTER RESULTS FORD'S FOURTHQUARTER PROFIT OF 719 MILLION OR 130 A SHARE WHICH INCLUDED A SMALL GAIN ON THE SALE OF A PARTS BUSINESS WAS ON THE HIGH SIDE OF ANALYSTS' EXPECTATIONS IT COMPARES WITH A YEAREARLIER LOSS OF 840 MILLION OR 185 A SHARE AFTER CERTAIN SPECIAL CHARGES BUT THE STOCK MARKET'S REACTION SHOWS THAT REPORTING SOLID YEARTOYEAR GAINS IS NO LONGER ENOUGH TO BOOST AUTO STOCKS WHICH HAVE LATELY TRADED AT HISTORIC HIGHS BECAUSE DEMAND FOR AUTOS IS EXPECTED TO CONTINUE TO RISE FORD FELL 1 APIECE TO 6850 YESTERDAY IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF GENERAL MOTORS CORP WHICH IS TO REPORT FOURTHQUARTER RESULTS TODAY FELL 50 CENTS APIECE TO 6425 IN BIG BOARD TRADING THIS WAS ONE OF THE MOST WIDELY ANTICIPATED EARNINGS SURPRISES IN RECENT HISTORY SAID JACK KIRNAN A SALOMON BROTHERS AUTO ANALYST FORD WOULD HAVE HAD TO BLOW RIGHT THROUGH THE HIGHEST ESTIMATE ON THE STREET FOR THE STOCK TO RISE FORD'S WORLDWIDE REVENUE FOR THE FOURTH QUARTER WAS 278 BILLION UP 96 FROM 254 BILLION A YEAR EARLIER FOR ALL OF 1993 FORD SAID IT EARNED 25 BILLION OR 455 A COMMON SHARE COMPARED WITH A RECORD LOSS OF 74 BILLION OR 1561 A SHARE FOR 1992 THE 1992 LOSS WAS LARGELY BECAUSE OF A HUGE ONETIME CHARGE TO ACCOUNT FOR FUTURE RETIREE BENEFITS FOR ALL OF 1993 FORD POSTED REVENUE OF 1085 BILLION COMPARED WITH THE 1001 BILLION IN 1992 FORD CHAIRMAN ALEXANDER TROTMAN CALLED THE 1993 RESULTS THE STRONGEST TURNAROUND IN FORD'S HISTORY HE CREDITED FORD'S IMPROVED PROFITABILITY TO STRENGTHENING OR STABILIZING ECONOMIES AROUND THE WORLD LOOKING AHEAD WE'RE IN GOOD SHAPE FOR 1994 MR TROTMAN SAID WE HAVE STRONG NEW PRODUCTS AND WE EXPECT BETTER ECONOMIC CONDITIONS STILL FORD'S STRONG FOURTHQUARTER PROFIT OF 719 MILLION FELL SHORT OF MUCH SMALLER CHRYSLER CORP'S RECENTLY REPORTED 777 MILLION PROFIT FOR THE PERIOD FORD'S NORTH AMERICAN OPERATION IS SHOWING SOME MATERIAL IMPROVEMENT SALOMON'S MR KIRNAN SAID IT'S NOT WHERE CHRYSLER IS BUT THE GAP IS NARROWING NOTABLY FORD POSTED A SOLID IMPROVEMENT IN ITS US AUTOMOTIVE PROFITS WHICH SOARED TO 669 MILLION IN THE FOURTH QUARTER COMPARED WITH A LOSS OF 405 MILLION IN THE 1992 QUARTER THE FOURTHQUARTER RESULTS FOR 1993 ALSO INCLUDED A ONETIME 73 MILLION GAIN FROM THE SALE OF PART OF FORD'S NORTH AMERICAN AUTOMOTIVE SEATING AND SEATTRIM BUSINESS FORD'S US FACTORIES OPERATED AT 108 OF THEIR AVAILABLE STRAIGHTTIME CAPACITY DURING THE LATEST QUARTER AND ARE PROJECTED TO CONTINUE AT THAT LEVEL IN THE CURRENT QUARTER FORD'S CASH REBATES OR SALES INCENTIVES DROPPED TO 865 A VEHICLE IN THE FOURTH QUARTER DOWN FROM 1150 A VEHICLE IN THE YEAREARLIER PERIOD BUT FORD STILL EARNED MUCH LESS THAN CHRYSLER ON EVERY VEHICLE IT SOLD IN THE FOURTH QUARTER DESPITE BEING THE INDUSTRY'S LOWCOST PRODUCER FORD OFFICIALS HAVE GROWN SENSITIVE TO SUCH COMPARISONS AND YESTERDAY DAVID N MCCAMMON FORD'S VICE PRESIDENT FOR FINANCE MAINTAINED I EXPECT THAT TREND TO CHANGE DRAMATICALLY OVER THE NEXT COUPLE OF YEARS AS FORD BOOSTS PRODUCTION OF MORE PROFITABLE MINIVANS AND SPORTUTILITY VEHICLES FORD IS PUMPING MONEY INTO DEVELOPING AND LAUNCHING NEW PRODUCTS ITS CASH FLOW FROM AUTOMOTIVE OPERATIONS WAS UP 111 BILLION FROM 1992 TO 686 BILLION BUT VIRTUALLY ALL OF THAT WAS FUNNELED INTO HIGHER CAPITAL EXPENDITURES CAPITAL SPENDING AMOUNTED TO 671 BILLION IN 1993 COMPARED WITH 1992 OUTLAYS OF 570 BILLION WE'RE AT A RECORD LEVEL OF PRODUCT LAUNCHES AND WE'VE JUST EMERGED FROM A RELATIVELY WEAK PERIOD IN THE CYCLE SAID ENDERS DICKINSON FORD'S MANAGER OF INVESTOR RELATIONS AS THE RECOVERY CONTINUES WE WOULD EXPECT OUR FINANCIAL RESULTS AND CASH FLOW TO IMPROVE OVERSEAS FORD'S FOURTHQUARTER LOSS NARROWED TO 372 MILLION FROM 909 MILLION A YEAR EARLIER FORD POSTED A SMALLER 143 MILLION LOSS AT FORD OF EUROPE COMPARED WITH A YEAREARLIER LOSS OF 749 MILLION EVEN THOUGH EUROPEAN VEHICLE SALES WERE DOWN 16 IN 1993 COMPARED WITH 1992 FORD'S JAGUAR CARS LTD UNIT POSTED A LOSS OF 145 MILLION AFTER A 109 MILLION RESTRUCTURING CHARGE COMPARED WITH A LOSS OF 112 MILLION IN 1992 MEANWHILE FORD'S FINANCIAL SERVICES GROUP POSTED A PROFIT OF 16 BILLION FOR ALL OF 1993 UP FROM 124 BILLION A YEAR EARLIER THAT INCLUDES A LOSS FOR THE FIRST NATIONWIDE BANKING UNIT OF 55 MILLION COMPARED WITH A LOSS OF 81 MILLION IN 1992 9402100083 940210 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 1/4 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 335 30 TO 59 DAYS 338 60 TO 89 DAYS 343 90 TO 119 DAYS 347 120 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 341 30 DAYS 346 60 DAYS 350 90 DAYS CERTIFICATES OF DEPOSIT 271 ONE MONTH 277 TWO MONTHS 283 THREE MONTHS 301 SIX MONTHS 336 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 342 THREE MONTHS 362 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 335 60 DAYS 339 90 DAYS 343 120 DAYS 345 150 DAYS 349 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/8 3 1/4 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 9/16 3 7/16 THREE MONTHS 3 5/8 3 1/2 FOUR MONTHS 3 11/16 3 9/16 FIVE MONTHS 3 3/4 3 5/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/8 ONE MONTH 3 9/16 THREE MONTHS 3 3/4 SIX MONTHS 4 1/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 591 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 7 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 324 13 WEEKS 340 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 709 60 DAYS 715 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 708 60 DAYS 718 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 9402100082 940210 BUSINESS BRIEF TRW INC COMPANY POSTS 78 JUMP IN FOURTHQUARTER PROFIT TRW INC CLEVELAND REPORTED A 78 JUMP IN FOURTHQUARTER PROFIT BOOSTED BY STRONG RESULTS IN ITS NORTH AMERICAN AUTOMOTIVE OPERATIONS AND LOWER INTEREST EXPENSES PROFIT ROSE TO 636 MILLION OR 96 CENTS A SHARE FROM 59 MILLION OR 94 CENTS A SHARE IN 1992 SALES FELL TO 2 BILLION FROM 21 BILLION FOR THE COMPANY WHICH OPERATES AUTOMOTIVE SPACE AND DEFENSE AND OTHER BUSINESSES TRW SAID INCREASED SALES FROM ITS NORTH AMERICAN AND EUROPEAN AIRBAG SYSTEMS BUSINESS WERE MORE THAN OFFSET BY LOWER SPACE AND DEFENSE INDUSTRY SALES THE COMPANY SAID A RESTRUCTURING PROGRAM COMPLETED LAST YEAR IMPROVED ITS FINANCIAL PERFORMANCE TRW SHOULD BENEFIT IN 1994 FROM HIGHER NORTH AMERICAN VEHICLE PRODUCTION INCLUDING INCREASED ORDERS FOR ITS AIRBAG PRODUCTS AND IMPROVED PERFORMANCE IN THE STEERING SYSTEMS BUSINESS WORLDWIDE WE EXPECT LITTLE IMPROVEMENT IN THE EUROPEAN ECONOMY THIS YEAR TRW ADDED 9402100081 940210 WHO'S NEWS FEDERALMOGUL CORP FEDERALMOGUL CORP SOUTHFIELD MICH ANTONIO MADERO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CORPORACION INDUSTRIAL SANLUIS SA DE CV WAS ELECTED TO THE BOARD OF THIS AUTOPARTS MAKER FILLING A VACANCY LEFT BY THE DEPARTURE OF RONALD W SKEDDLE 9402100080 940210 CORRECTIONS & AMPLIFICATIONS ALTUS FINANCE A SUBSIDIARY OF CREDIT LYONNAIS IN 1991 ACQUIRED A 325 BILLION JUNKBOND PORTFOLIO FROM FAILED INSURER EXECUTIVE LIFE INSURANCE CO OF THE US IN AN ARTICLE YESTERDAY THE FAILED INSURER WAS INCORRECTLY IDENTIFIED AS EQUITABLE LIFE INSURANCE CO EQUITABLE LIFE REMAINS A GOING CONCERN AIRGAS INC BASED IN RADNOR PA COMPLETED ITS ACQUISITION OF CERTAIN BUSINESSES OF AIRCO GAS & GEAR CO A UNIT OF BOC GROUP INC AN ARTICLE YESTERDAY INCORRECTLY SAID AIRGAS WAS A UNIT OF BOC GROUP 9402100078 940210 WHO'S NEWS ZYCAD CORP ZYCAD CORP FREMONT CALIF JAMES FIEBIGER 52 YEARS OLD FORMER PRESIDENT OF VLSI TECHNOLOGY INC WAS NAMED A DIRECTOR OF THIS MAKER OF COMPUTER PRODUCTS INCREASING THE BOARD TO FIVE 9402100077 940210 ILLINOIS POWER PLAN APPROVAL DECATUR ILL ILLINOIS POWER CO SAID ITS SHAREHOLDERS APPROVED THE FORMATION OF A HOLDING COMPANY CALLED ILLINOVA TO HELP POSITION THE UTILITY TO COMPETE IN AN INCREASINGLY DEREGULATED UTILITY INDUSTRY SHAREHOLDERS WILL OWN ONE SHARE OF ILLINOVA STOCK FOR EACH SHARE OF ILLINOIS POWER STOCK THEY OWN THE HOLDING COMPANY WILL BE THE PARENT OF ILLINOIS POWER AND IP GROUP INC AND EVENTUALLY ALL NONUTILITY SUBSIDIARIES THE COMPANY WHICH IS SEEKING REGULATORY APPROVAL FOR THE RESTRUCTURING SAID THE NUCLEAR REGULATORY COMMISSION HAS ALREADY GRANTED ITS PERMISSION 9402100076 940210 MARKETING & MEDIA MARKETSCAN PRIVATELABEL UNIT SALES DROP BUT CAN BIG MARKETERS RELAX YET BY KATHLEEN DEVENY CONSUMERS DROPPED FEWER PRIVATELABEL PRODUCTS INTO THEIR GROCERY CARTS DURING THE FOURTH QUARTER PERHAPS SIGNALING THE END OF THE STEADY GAINS THAT HAVE RATTLED MARKETERS OF NATIONAL BRANDS UNIT SALES OF PRIVATELABEL GOODS IN SUPERMARKETS DROPPED 03 DURING THE 13 WEEKS ENDED JAN 2 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE DOLLAR SALES OF STORE BRANDS INCREASED 11 TO 768 BILLION DURING THE QUARTER BECAUSE OF INCREASING PRICES OF SOME BRANDS THE SLIGHT DECLINE IN UNIT SALES INDICATES THAT THE DEFENSIVE MANEUVERS OF SOME BIG MARKETERS HAVE PAID OFF ACCORDING TO ANALYSTS SUCH COMPANIES AS PHILIP MORRIS COS AND PROCTER & GAMBLE CO HAVE CHOPPED PRICES OF SOME OF THEIR FLAGSHIP BRANDS MANY OTHER MARKETERS FROM JOHNSON & JOHNSON TO HJ HEINZ CO RESPONDED TO THE THREAT OF PRIVATELABEL PRODUCTS BY SPENDING MORE ON PROMOTIONS AND ADVERTISING OR BY SPINNING OUT NEW PRODUCTS MEANT TO GIVE THEM A CLEAR QUALITY ADVANTAGE BIG BRANDS ARE BATTLING BACK SAYS JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES BUT THE WAR IS FAR FROM OVER IN FACT PRIVATELABEL GOODS ACTUALLY EKED OUT SMALL INCREASES IN MARKET SHARE DURING THE QUARTER LARGELY BECAUSE TOTAL GROCERY SALES WERE EVEN MORE SLUGGISH TOTAL DOLLAR SALES IN SUPERMARKETS INCHED UP ONLY 05 DURING THE FOURTH QUARTER WHILE TOTAL UNIT SALES DECLINED 04 PRIVATELABEL GOODS ACCOUNTED FOR 149 OF TOTAL DOLLAR SALES AND 195 OF ALL ITEMS SOLD IN GROCERY STORES SALES OF PRIVATELABEL GOODS CONTINUED TO RISE IN CATEGORIES THAT WERE ONCE CONSIDERED BASTIONS OF BRAND LOYALTY FOR EXAMPLE QUARTERLY SALES OF PRIVATELABEL COLD REMEDIES GREW 266 WHILE SALES OF STOREBRAND ANALGESICS GREW 19 IN ADDITION SALES OF PRIVATELABEL SANITARYPROTECTION PRODUCTS INCREASED 314 CONVENTIONAL WISDOM HAS HELD THAT CONSUMERS PREFER FAMILIAR BRANDS OF THOSE PRODUCTS BECAUSE OF THEIR PERSONAL NATURE PRIVATELABEL GOODS ARE UNDERGOING A SUBTLE CHANGE IN THE MARKETPLACE SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION THEY'RE SHIFTING FROM COMMODITY ITEMS TO MORE UPSCALE PRODUCTS MR SHAROFF ADDS THAT SALES OF STOREBRAND GOODS ARE GROWING MORE QUICKLY IN OTHER RETAIL OUTLETS INCLUDING MASS MERCHANDISERS AND WAREHOUSE CLUBS BUT EVEN MR SHAROFF CONCEDES THAT THE MOMENTUM OF STORE BRANDS HAS SLOWED SHARPLY FROM THE BOOM YEARS BETWEEN 1988 AND 1992 LARGELY BECAUSE OF PRICECUTTING BY MARKETERS OF BIG BRANDS SUPERMARKET UNIT SALES OF ALL PRIVATELABEL PRODUCTS INCREASED 08 IN 1993 FROM THE YEAR BEFORE ACCORDING TO INFORMATION RESOURCES COMPARED WITH GROWTH OF 4 IN 1991 AND 3 IN 1992 GROCERY MANUFACTURERS TODAY FULLY UNDERSTAND THAT THE NAME OF THE GAME IS VALUE SAYS C MANLY MOLPUS PRESIDENT OF THE GROCERY MANUFACTURERS OF AMERICA AN INDUSTRY TRADE GROUP THE ORGANIZATION IS POISED TO KICK OFF A YEARLONG PUBLICRELATIONS CAMPAIGN THAT WILL ATTEMPT AMONG OTHER THINGS TO CONVINCE RETAILERS THAT NATIONAL BRANDS CAN BE MORE PROFITABLE THAN STOREBRAND GOODS WE'RE VERY COMPETITIVELY POSITIONED INDEED THE EFFORTS OF SOME BIG MARKETERS TO COMBAT THEIR BUDGET RIVALS ARE CLEARLY WORKING IN MAY PHILIP MORRIS CUT PRICES OF ITS PREMIUM CIGARETTES BY 20 AND OTHER MANUFACTURERS QUICKLY FOLLOWED WHILE CIGARETTES RANKED SECOND ON INFORMATION RESOURCES' ROSTER OF FASTGROWING PRIVATELABEL CATEGORIES DURING THE THIRD QUARTER OF 1993 GROWTH SLOWED SIGNIFICANTLY DURING THE FOURTH QUARTER AS THE PRICE OF PREMIUM CIGARETTES HAS BECOME MORE COMPETITIVE SAYS A SPOKESWOMAN FOR PHILIP MORRIS MORE CONSUMERS ARE OPTING FOR BRANDNAME CIGARETTES 9402100075 940210 WHAT'S IN A NAME A BIT OF TROUBLE REPUBLICANS FIND FORMER FUNDRAISER SETS UP A PAC NAMED NRCCC AND NRCC ISN'T AMUSED BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MICHIGAN VOTERS OUSTED GUY VANDER JAGT FROM CONGRESS BUT HE'S STILL LIVING THE LIFE TO WHICH HE HAD BECOME ACCUSTOMED OVER TWO DECADES TRAVELING THE COUNTRY SPEAKING TO BUSINESS CONVENTIONEERS AND HEADING A REPUBLICAN CONGRESSIONAL FUNDRAISING COMMITTEE A WHAT HOUSE REPUBLICAN LEADERS HAVE BEEN THREATENING TO TAKE THEIR FORMER COLLEAGUE TO COURT AFTER RECENTLY DISCOVERING THAT HE HAD FORMED A POLITICALACTION COMMITTEE NAMED THE NATIONAL REPUBLICAN CAMPAIGN COMMITTEE FOR CHANGE OR NRCCC THE NAME RANG A BELL AND SET OFF AN ALARM MR VANDER JAGT HEADED THEIR OWN NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE OR NRCC 18 YEARS UNTIL 1993 AND LEFT THE LONGSTANDING OFFICIAL GROUP 45 MILLION IN DEBT HE SHOULD BE THE LAST PERSON REPUBLICANS GROUSE TO COMPETE WITH THEM FOR CONSERVATIVES' DOLLARS MR VANDER JAGT HASN'T DONE ANY FUND RAISING SO FAR BUT IN A LETTER TO HIM THIS WEEK DEPUTY HOUSE GOP LEADER NEWT GINGRICH OF GEORGIA WARNED THAT THE OFFICIAL COMMITTEE'S NAME AND ACRONYM ARE PROTECTED TRADEMARKS AND THAT ANY FUND RAISING FOR THE VANDER JAGT PAC WILL BE REGARDED AS AN INFRINGEMENT OF THAT TRADEMARK AND LEGAL ACTION WILL BE INITIATED WITHOUT DELAY ADDS REP BILL PAXON OF NEW YORK THE CURRENT CHAIRMAN OF THE HOUSE GOP COMMITTEE WHO HERETOFORE HAS REFRAINED FROM CRITICIZING HIS PREDECESSOR IT'S AN OUTRAGEOUS ATTEMPT TO TAKE ADVANTAGE OF THE GOOD NAME OF THE PARTY IT'S VERY CLEAR THAT IF PEOPLE WHO PREVIOUSLY RECEIVED A SOLICITATION FROM THE NRCC NOW GET ONE FROM THE NRCCC SIGNED BY THE FORMER CHAIRMAN OF THE NRCC IT WILL CAUSE CONFUSION ABOUT WHO IS SOLICITING MONEY FOR WHAT AFTER REP GINGRICH'S WARNING AND INQUIRIES FROM THIS NEWSPAPER MR VANDER JAGT THIS WEEK TELECOPIED A LETTER TO THE GOP LEADER PROMISING TO CHANGE HIS PAC'S NAME HE HAS BEEN OUT WEST RIDING THE RUBBERCHICKEN CIRCUIT HAVING JOINED A SPEAKER'S BUREAU ON THE STRENGTH OF HIS REPUTATION FOR CONSERVATIVE STEMWINDERS AND IN AN INTERVIEW YESTERDAY FROM LAS VEGAS MR VANDER JAGT REVEALED THE LIKELY NEW NAME COMMITTEE TO CHANGE THE CONGRESS BUT THE BIG NRCC DEBT STILL RANKLES SOME PEOPLE THE FLAP ALSO OFFERS A GLIMPSE OF A PARTICULAR WASHINGTON TYPE THE FORMER MEMBER OF CONGRESS WHO CAN'T GO HOME AGAIN BECAUSE HOME IN MR VANDER JAGT'S CASE RURAL LUTHER MICH ISN'T REALLY HOME AT ALL AFTER HIS 26 YEARS IN CONGRESS WASHINGTON IS HOME IN TERMS OF PROFESSIONAL OPPORTUNITIES AND PERSONAL TASTES WITH THE LEGAL SKILLS I POSSESS HE SAYS I THINK THERE IS A BIGGER MARKET FOR THEM IN WASHINGTON THAN THERE IS IN LUTHER IN AN INTERVIEW LAST MONTH MR VANDER JAGT SAID HE HAS TRIPLED HIS INCOME SINCE LOSING HIS 129500AYEAR SEAT IN CONGRESS A LAWYER HE LOBBIES FOR THE WASHINGTON OFFICE OF BAKER & HOSTETLER A CLEVELANDBASED LAW FIRM AND STILL DINES WITH HOUSE GOP CLIQUES ON CAPITOL HILL HE SITS ON CORPORATE BOARDS AND WITH AN AGENT'S HELP GIVES MOTIVATIONAL SPEECHES AROUND THE COUNTRY THERE'S A DEARTH OF INSPIRATIONAL SPEAKERS OUT THERE HE SAID AFTER ADDRESSING TRUCKSTOP OPERATORS IN LAS VEGAS HE IS GOING OFF TO MOTIVATE MONTANA FARMERS HE OFTEN BEGINS HIS SPEECHES HE SAYS WITH A LINE LIKE DON'T HOLD IT AGAINST ME THAT I WAS A CONGRESSMAN I'M NOW EARNING AN HONEST LIVING I'M A LAWYER THAT HE SAID BREAKS 'EM UP BUT BACK IN WASHINGTON REPUBLICANS AREN'T LAUGHING THE PAC EPISODE HOWEVER BRIEFLY REVIVED A FAMILY FEUD THAT REPUBLICANS HAD THOUGHT BEHIND THEM WHEN MR VANDER JAGT LEFT CONGRESS AFTER HIS 1992 DEFEAT HIS EARLY KUDOS FOR REBUILDING THE PARTY'S MONEY MACHINE FROM THE RUINS OF WATERGATE HAD GIVEN WAY BY 1990 TO REPUBLICANS' COMPLAINTS OF LAVISH SPENDING AND CRONYISM IN THE AWARD OF CONSULTING CONTRACTS HE WON THE FINAL TWO YEARS OF HIS 18YEAR NRCC CHAIRMANSHIP ONLY AFTER A NASTY CHALLENGE EVEN AFTER THAT SCARE MR VANDER JAGT SPENT ABOUT 300000 ON TRAVEL IN HIS FINAL YEAR AS HOUSE REPUBLICANS' CHIEF FUNDRAISER ACCORDING TO EMBITTERED PEOPLE AT THE NRCC HIS EXPENSES THEY SAY INCLUDED CHARTERED AIRPLANES FIRSTCLASS AIR FARES HOTEL SUITES MEALS AND LIMOUSINES STOCKED WITH HIS BRAND OF CIGARETTES BY CONTRAST THEY ADD REP PAXON SPENT LESS THAN 5000 LAST YEAR MR VANDER JAGT RECALLING HIS COMMITTEE TRAVELS LATE IN THE 1992 CAMPAIGNS SAYS YOU DON'T COVER 45 STATES AND 110 CONGRESSIONAL DISTRICTS IN A 2 1/2MONTH PERIOD WITHOUT RUNNING UP SOME EXPENSES MR VANDER JAGT'S NRTRIPLEC PAC WAS REGISTERED WITH THE FEDERAL ELECTION COMMISSION THREE DAYS BEFORE CHRISTMAS REP GINGRICH ACKNOWLEDGES THAT MR VANDER JAGT HAD TOLD HIM OF HIS PLANS TO FORM THE COMMITTEE BUT HE ADDS IT'S ONE THING TO SAY I'M GOING TO FORM A LITTLE PAC' IN THAT CONVERSATION WITH ME HE WAS DESCRIBING A GENERAL APPROACH TO HELPING ELECT REPUBLICANS HE AT NO POINT SUGGESTED HE'D START A GROUP WHOSE NAME AND ACRONYM IS ALMOST IDENTICAL TO THE NRCC WE WERE VERY SHOCKED WHEN WE SAW THE FEC FILING MR VANDER JAGT SAYS HE STARTED THE COMMITTEE BECAUSE PEOPLE SAID THEY MISSED GIVING TO ME AND WHY DIDN'T I HAVE A PAC BUT MANY HOUSE REPUBLICANS ARE WARY AND SIMPLY CHANGING THE PAC'S NAME WON'T PACIFY THEM THEY SUSPECT THAT THE COMMITTEE WOULD BE RUN THE WAY THEY DESCRIBE THE VANDER JAGTERA NRCC UNDERWRITING HIS TRAVELS AND PAYING LARGE FEES FOR OUTSIDE CONSULTANTS BEFORE GOP CANDIDATES SEE ANY MONEY THEY NOTE THAT MR VANDER JAGT'S OWN NAME HAD BECOME IDENTIFIED WITH THE PARTY IN THE MINDS OF MANY PAST CONTRIBUTORS A POINT HE HIMSELF MADE IN 1990 WHEN HE PLEADED WITH GOP COLLEAGUES TO KEEP THE JOB BUT THE SINGLE BIGGEST CONCERN SAYS REP GINGRICH IS THAT MR VANDER JAGT WILL USE THE NRCC'S OWN DIRECTMAIL LIST TO TAP CONTRIBUTIONS THE LIST IS JOINTLY OWNED BY THE NRCC AND WYATT STEWART A DIRECTMAIL EXPERT AND MR VANDER JAGT'S LONGTIME NRCC FINANCE DIRECTOR MR STEWART ACQUIRED HIS STAKE IN THE LIST AND FORMED HIS OWN DIRECTMAIL FIRM WHILE AT THE NRCC AND OVER THE YEARS HIS CHARGES TO THE NRCC FOR FUNDRAISING EXPENSES WERE SEVERAL TIMES HIS FINANCEDIRECTOR SALARY MR STEWART THOUGH DENIES ANY SUGGESTION THAT HE WOULD HAVE A ROLE IN THE VANDER JAGT PAC THEY DON'T KNOW WHAT THEY ARE TALKING ABOUT HE SAYS THAT'S THE MOST RIDICULOUS THING I'VE EVER HEARD I'M PERSONALLY SHOCKED BUT REP GINGRICH WANTS ASSURANCE LATE YESTERDAY AFTER LEARNING OF THE NAME CHANGE HE GOT MR VANDER JAGT'S PLEDGE THAT MR VANDER JAGT WON'T RENT OR USE THE NRCC LIST PEACE AND AFFECTION REIGN IN THE FAMILY THE LEGISLATOR LATER QUIPPED REP GINGRICH ALSO IS ASKING MR VANDER JAGT TO HEAD AN EFFORT TO RETIRE THE NRCC'S CURRENT 36 MILLION DEBT THOUGH HE ACKNOWLEDGES THAT SUCH AN EFFORT MIGHT CUT INTO MR VANDER JAGT'S OWN FUNDRAISING AND SPEAKING TIME BUT SINCE THE RED INK PILED UP ON HIS WATCH REP PAXON SAYS GUY WOULD BE PARTICULARLY APPROPRIATE IN HELPING US TO RETIRE THAT DEBT 9402100074 940210 MUTUAL FUND SCORECARD / GINNIE MAE MUTUAL FUND SCORECARDS FOR US GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DEC 31 1992 RATHER THAN DEC 31 1993 DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INC THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH 12 MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JAN 31 1994 9402100073 940210 BUSINESS BRIEF CLIFFS DRILLING CO OIL SERVICES FIRM EXPECTS CHARGE BECAUSE OF LAWSUIT CLIFFS DRILLING CO SAID IT EXPECTS TO TAKE A FOURTHQUARTER CHARGE OF 35 MILLION OR 78 CENTS A SHARE CLIFFS HAD PREVIOUSLY ANNOUNCED A FOURTHQUARTER CHARGE OF 577000 OR 13 CENTS A SHARE RESULTING FROM AN ACCOUNTING PROVISION FOR 1994 TERMINATION OF CERTAIN CONTRACTS THE HOUSTON OIL SERVICES COMPANY SAID THE 35 MILLION CHARGE RESULTS FROM A JUDGMENT AGAINST CLIFFS IN THE LAWSUIT INVOLVING DIAMOND MODECO OFFSHORE INC IN THE YEAREARLIER FOURTH QUARTER CLIFFS REPORTED A LOSS OF 11 MILLION OR 44 CENTS A SHARE AFTER A 15 MILLION CHARGE FROM THE WRITEDOWN OF OIL AND GAS PROPERTIES 9402100072 940210 INSURANCE CALPERS PROVES INSURANCE COSTS CAN BE REDUCED BY MARILYN CHASE AND CARRIE DOLAN STAFF REPORTERS OF THE WALL STREET JOURNAL AFTER FOUR MONTHS OF NEGOTIATIONS WITH 18 HEALTHMAINTENANCE ORGANIZATIONS ONE OF THE NATION'S LARGEST GROUP PURCHASERS OF HEALTH INSURANCE HAS SECURED AN AVERAGE 11 PREMIUM REDUCTION FOR 920000 PUBLIC EMPLOYEES AND FAMILY MEMBERS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM CALPERS WON THE ONEYEAR CONTRACTS YESTERDAY THE PROCESS AND ITS RESULT MAY BE SEEN AS A MODEL FOR CLINTON HEALTHCARE REFORM A LARGE PUBLIC HEALTHCARE PURCHASING AGENT SQUEEZING EVEN LOWCOST PROVIDERS LIKE HMOS INTO MAKING EXTRA SAVINGS BUT CALPERS'S SUCCESS MAY ALSO SHOW THAT AN ELABORATE GOVERNMENT BUREAUCRACY ISN'T NEEDED TO LOWER HEALTHCARE COSTS THE REDUCTION SHOWS MANAGED COMPETITION CAN BRING DOWN THE COST OF HEALTH CARE PARTICULARLY IN AREAS LIKE CALIFORNIA WHERE HMOS ARE WELLDEVELOPED SAID ALAIN C ENTHOVEN A PROFESSOR AT STANFORD UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS AND A CALPERS ADVISORY COMMITTEE MEMBER COMPETITION WORKS NOT COMPULSION HE SAID CALPERS SAID IT HAS KEPT PREMIUM INCREASES OVER THE PAST THREE YEARS TO 64 COMPARED TO THE NATIONAL AVERAGE OF 301 FOR THE 199495 CONTRACT YEAR WHEN THE RATE REDUCTION TAKES EFFECT CALPERS SAID ITS SAVINGS WILL BE ABOUT 321 MILLION WHILE NOT ALL THE CONTRACTS MET ITS DEMAND FOR A 5 RATE CUT CALPERS SAID IT HOPES TO ACHIEVE THAT GOAL IN THE NEXT SEVERAL YEARS CALPERS ONCE KNOWN AS A LANGUID AND NOT PARTICULARLY CHOOSY BUYER OF HEALTH CARE HAS RECAST ITSELF AS A TIGER IN RECENT YEARS IN 1991 AFTER CALIFORNIA'S BUDGET CRISES CALPERS FROZE ITS CONTRIBUTIONS TO HEALTH CARE MAKING ITS HMOS RESPONSIBLE FOR COST VARIATIONS LAST OCTOBER CALPERS DEMANDED THAT ITS 18 HMOS CUT HEALTHCARE PREMIUMS 5 EFFECTIVE AUG 1 THE START OF THE 199495 CONTRACT YEAR IT CALLED THE DEMAND MODEST GIVEN CALIFORNIA'S STAGNANT ECONOMY BUT THAT DEMAND FOLLOWED TWO YEARS OF STRICT COST CONTAINMENT SO CALPERS'S DEMAND LEFT SOME HMOS A LITTLE TESTY THEY'RE A 900POUND GORILLA AND THEY KNOW IT GRUMBLED ONE HMO NEGOTIATOR WHO ASKED NOT TO BE IDENTIFIED THEY DON'T HAVE TO BE REAL SOPHISTICATED THEY KNOW THE VOLUME THEY REPRESENT BOTTOM LINE IS THEY ARE HOLDING MOST OF THE CARDS ABOUT A THIRD OF THE HMOS DOING BUSINESS WITH CALPERS OFFERED PREMIUM REDUCTIONS SAID TOM ELKIN THE AGENCY'S ASSISTANT EXECUTIVE OFFICER OTHERS WITH LOWER BASE RATES OR OLDER SICKER PATIENT POPULATIONS ASKED FOR MODEST SINGLEDIGIT PREMIUM RISES WHILE A FEW ARGUED FOR DOUBLEDIGIT INCREASES HE SAID THE LATTER GROUP GOT LITTLE SYMPATHY WE'RE OUT OF CASH MR ELKIN SAID HE TOLD THEM AND WE CAN'T ENTERTAIN INCREASES OF THAT MAGNITUDE WE'D LIKE SOME SIGN THAT YOU CAN IN FACT MANAGE CARE AMONG THE KEY ISSUES MR ELKIN SAID WERE THE PRICE OF PRESCRIPTION DRUGS SURGERIES AND ADMINISTRATIVE EXPENSES INCLUDING PROFIT MARGINS AND CONSULTANTS' FEES AS AN EXAMPLE HE NOTED THERE'S A 30 DIFFERENCE BETWEEN WHAT ONE PLAN IS PAYING FOR DRUGS AND ANOTHER MR ELKIN TOLD THE HMOS THIS CAN BE CORRECTED BY BUYING IN BULK AND CHANGING VENDORS THEN PASSING ON THE SAVINGS IF THEY'D SUCCEEDED IN PUSHING US TO THE ABSOLUTE WALL WE'D HAVE SAID NO WE'RE NOT IN THE BUSINESS OF CHARITY WE'D HAVE GONE WITHOUT THEIR BUSINESS SAID ONE HEALTHCARE OFFICER BUT THE ULTIMATUM NEVER OCCURRED MR ELKIN CONCEDED THAT NEGOTIATIONS CAN GET A LITTLE LIVELY IF THE EXPECTATION IS MUCH HIGHER THAN WE CAN PAY IT GETS A LITTLE TENSE ON AVERAGE THOUGH WE GET GOOD COOPERATION AND IN THE END CALPERS RELENTED ON THE 5 ROLLBACK DEMAND AS MANY HAD PREDICTED MR ELKIN SAID CALPERS WAS IMPRESSED BY THE EFFORTS OF KAISER PERMANENTE THE OAKLAND CALIF HMO THAT CARES FOR 320000 CALPERS SUBSCRIBERS A YEAR AGO KAISER'S NORTHERN CALIFORNIA REGION CONSIDERED INCREASING ITS PREMIUMS 6 FOR ALL ITS CUSTOMERS INCLUDING CALPERS INSTEAD IT LOOKED HARD AT RESULTS OF ITS COSTCUTTING PROGRAMS AND RAISED PREMIUMS AN AVERAGE OF 2 KAISER SPOKESMAN JERRY FLEMING SAID IT WASN'T SIMPLY PRODDING BY CALPERS THAT LED TO KAISER'S CHANGE OF HEART WE'RE DOING BETTER WITH OUR COST TARGETS THAN WE'D BUDGETED FOR HE SAID KAISER'S MOST POTENT COST CONTROLS ARE SIMPLE THINGS LOWERING HOSPITAL INPATIENT RATES SUBSTITUTING OUTPATIENT SURGERIES WHEN POSSIBLE AND AGGRESSIVELY KEEPING KAISER MEMBERS OUT OF MORE EXPENSIVE NONKAISER INSTITUTIONS AT THE SAME TIME THE SATISFACTION OF OUR MEMBERS WAS GOING UP SO WE KNEW THESE SAVINGS WEREN'T BECAUSE WE WERE SKIMPING ON CARE HE ADDED OTHER HMOS SAID THEY CRACKED DOWN ON HIGH DIAGNOSTIC TEST PRICES CHARGED BY CERTAIN HOSPITALS TRYING TO OFFSET LOSSES ON INPATIENT BUSINESS HMOS SAID THEY'RE ALSO TRYING TO LIMIT THE BUDGET HAVOC WROUGHT WHEN HOSPITALS BUY COSTLY NEW PSYCHIATRIC DRUGS THEY'RE A SIGNIFICANT PIECE OF THE TOTAL PHARMACEUTICAL COST AND THE TREND HAS BEEN VERY STEEP SAID ONE HMO OFFICER ADDING THAT HIS GROUP PLANS MORE SEMINARS ON COSTEFFECTIVE ALTERNATIVE DRUGS 9402100071 940210 INTERNATIONAL BRIEF WESTLAND PLC BOARD ADVISES SHAREHOLDERS TO REJECT GKN PLC'S BID THE BOARD OF WESTLAND PLC SAID YESTERDAY THAT IT HAS ADVISED SHAREHOLDERS TO REJECT THE UNWELCOME BID MADE TUESDAY BY GKN PLC WESTLAND IN LONDON SAID THE OFFER FAILS TO VALUE PROPERLY WESTLAND'S PROSPECTS AND COULD DEPRIVE ITS SHAREHOLDERS OF THE FULL BENEFITS ARISING FROM ANY SETTLEMENT IN A DISPUTE STEMMING FROM A COLLAPSED 1978 WESTLAND JOINTVENTURE AGREEMENT WITH EGYPT SAUDI ARABIA THE UNITED ARAB EMIRATES AND QATAR TO DEVELOP HELICOPTERS IN EGYPT ON TUESDAY GKN ANNOUNCED ITS INTENTION TO BUY THE SHARES OF WESTLAND THAT IT DOESN'T ALREADY OWN FOR 366 MILLION 5369 MILLION 9402100070 940210 WHO'S NEWS BRITISH BROADCASTING CORP BRITISH BROADCASTING CORP LONDON MICHAEL C GURY WAS NAMED VICE PRESIDENT PRODUCT MARKETING A NEW POST AT THIS MEDIA CONCERN'S BBC LIONHEART TELEVISION UNIT IN THE US MR GURY 41 YEARS OLD WAS DIRECTOR OF COMMUNICATIONS LATIN AMERICA FOR INTERNATIONAL BUSINESS MACHINES CORP 9402100069 940210 SPECTRUM SUES SCULLEY FOR 300 MILLION ALLEGING PLAN TO REPLACE MANAGEMENT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC FILED A 300 MILLION LAWSUIT AGAINST JOHN SCULLEY CHARGING HIM WITH BREACH OF CONTRACT MISMANAGEMENT AND THEFT OF TRADE SECRETS THE SUIT ALSO ALLEGES THAT MR SCULLEY QUIT ON MONDAY ONLY AFTER FIRST SEEKING TO OUST SPECTRUM MANAGEMENT THEN DECIDING TO GO INTO BUSINESS FOR HIMSELF MR SCULLEY INSISTS HE RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE BECAUSE HE WAS MISLED ABOUT THE COMPANY'S TROUBLES THE COMPLAINT FILED LATE YESTERDAY IN FEDERAL COURT IN BRIDGEPORT CONN PORTRAYS MR SCULLEY AS A DOUBLEDEALER WHO TRIED TO USE SPECTRUM TO HIS OWN PRIVATE BUSINESS ADVANTAGE BEFORE QUITTING AS EXPECTED SPECTRUM'S COUNTERPUNCH TO MR SCULLEY'S ABRUPT RESIGNATION CLAIMS THAT HE WAS FULLY INFORMED ABOUT A SECURITIES AND EXCHANGE COMMISSION PROBE OF THE TINY MANHASSET NY WIRELESS DATACOMMUNICATIONS COMPANY AND ABOUT SPECTRUM'S ACCOUNTING PROBLEMS WHICH LAST WEEK FORCED A RESTATEMENT OF EARNINGS IT FURTHER STATES THAT MR SCULLEY COMMISSIONED AN INDEPENDENT DUE DILIGENCE REVIEW OF SPECTRUM'S FINANCES BEFORE SIGNING ON IN OCTOBER AND THAT THE REPORT OUTLINED THE ACCOUNTING PROBLEMS THE NEW LAWSUIT WHICH IS SEPARATE FROM A SUIT THAT MR SCULLEY HAS FILED AGAINST SPECTRUM'S PRESIDENT PETER CASERTA ALSO SUGGESTS THAT MR SCULLEY WAS AT ODDS WITH SPECTRUM'S MANAGERS ALMOST FROM THE TIME HE JOINED THE COMPANY AND THAT HE SOON TURNED TO AN OUTSIDE CONSULTANT ARJUN GUPTA TO PLOT THE COMPANY'S FUTURE A SPOKESWOMAN FOR MR SCULLEY LABELED THE SPECTRUM LAWSUIT A COMPLETE WORK OF FICTION AND SAID HIS ATTORNEY HADN'T EVEN BEEN SERVED WITH THE LEGAL PAPERS SHE ALSO CONTENDED THAT THE COMPLAINT IS TACIT ADMISSION THAT SPECTRUM INSIDERS HAD MATERIAL NONPUBLIC INFORMATION THE EXISTENCE OF THE SEC PROBE WHEN THEY CASHED IN OPTIONS AND REAPED A 13 MILLIONPLUS COMBINED PROFIT WEEKS AFTER MR SCULLEY JOINED THE FIRM MR SCULLEY'S SUIT AGAINST MR CASERTA IS FILED IN FEDERAL DISTRICT COURT IN NEW YORK THE LAWSUIT ARGUES ESSENTIALLY THAT MR SCULLEY SHOPPED FOR COMPANY ACQUISITIONS DECIDED HE COULD MAKE MORE MONEY DOING THE DEALS FOR HIMSELF AND THEN SET A PLOT TO RESIGN YET ESCAPE LIABILITY FOR SHAREHOLDER DAMAGES WEEKS AFTER TAKING OVER MR SCULLEY INDICATED HE WANTED TO IMPOSE HIS OWN BOARD AND MANAGEMENT TEAM THE SUIT STATES BUT HE QUICKLY DROPPED THAT EFFORT AND TRIED TO QUIT IN EARLY DECEMBER RELENTING AFTER THE COMPANY TOLD HIM HE WOULD BE LIABLE FOR DAMAGES IF SPECTRUM'S SHARE PRICE PLUNGED ON HIS DEPARTURE SO HE ADOPTED A SECRET STRATEGY TO DRIVE THE SHARE PRICE DOWN AND HIRE A NEW ACCOUNTING FIRM TO FIND FAULT WITH THE COMPANY TO GIVE HIM A PRETEXT TO FEIGN DISGUST AND RESIGN THE SUIT CONTENDS MR SCULLEY DID INDEED CITE THE ACCOUNTING PROBLEMS AND OTHER MATTERS WHEN HE QUIT ON MONDAY SENDING COMPANY SHARES PLUMMETING BUT HE HAS NOW BEEN INCLUDED IN SHAREHOLDER LAWSUITS ANYWAY 9402100068 940210 BUSINESS BRIEF CBS POSTS 39 GAIN FOR 4THPERIOD NET ON STRENGTH OF ITS TV NETWORK RESULTS NEW YORK CBS INC REPORTED A 39 RISE IN FOURTHQUARTER EARNINGS ON THE STRENGTH OF ITS TELEVISION NETWORK WHICH POSTED ITS FIRST FOURTHQUARTER PROFIT SINCE 1985 CBS SAID NET INCOME FOR THE QUARTER ROSE TO 464 MILLION OR 277 A SHARE FROM 333 MILLION OR 214 A SHARE A YEAR AGO SALES IN THE QUARTER ROSE 77 TO 104 BILLION FROM 9683 MILLION REVENUE GROWTH AT THE TELEVISION NETWORK WAS AIDED BY HIGHER PRICING OF COMMERCIALS DURING THE PRIME EVENING HOURS AND BY NEW REVENUES FROM LATE SHOW WITH DAVID LETTERMAN WHICH MADE ITS DEBUT LAST AUGUST THE COMPANY SAID CBS SAID THAT AT ITS TELEVISION STATIONS DIVISION THE SALES INCREASE FOR THE QUARTER WAS THE BEST QUARTERLY INCREASE FOR 1993 HELPED MAINLY BY DOUBLEDIGIT GAINS AT STATIONS IN NEW YORK CHICAGO PHILADELPHIA AND MIAMI CBS RADIO'S SALES ROSE SLIGHTLY LED BY GAINS AT THE DIVISION'S RADIO NETWORKS THE COMPANY'S SHARES WERE OFF SLIGHTLY FALLING 225 TO CLOSE AT 311 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING JOHN G NELSON AN ANALYST AT BROWN BROTHERS HARRIMAN SAID EARNINGS FOR THE QUARTER WERE PROBABLY BELOW THE MORE THAN 3 A SHARE CONSENSUS HE ESTIMATED WAS HELD BY ANALYSTS ALTHOUGH REPORTED EARNINGS WERE LOWER THAN EXPECTATIONS TAKING INTO ACCOUNT A COUPLE OF ONETIME FACTORS UNDERLYING PROFITS WERE AS GOOD AS EXPECTED HE SAID FOR THE YEAR CBS REPORTED NET MORE THAN QUADRUPLED TO 3262 MILLION OR 2039 A SHARE FROM 81 MILLION OR 523 A SHARE THE RESULTS BENEFITED FROM A NUMBER OF SPECIAL NONRECURRING ITEMS THAT TOTALED 380 A SHARE OR ABOUT 591 MILLION CBS ALSO RECORDED A GAIN OF 153 A SHARE OR 396 MILLION BEFORE TAXES ON THE SALE OF MARKETABLE SECURITIES REVENUE FOR THE YEAR TOTALED 351 BILLION ABOUT FLAT WITH THE 350 BILLION OF THE PREVIOUS YEAR LAURENCE A TISCH CBS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY CONTINUES TO CAPITALIZE ON A NUMBER OF POSITIVE TRENDS INCLUDING GOOD AUDIENCE RATINGS IMPROVING ADVERTISER DEMAND AND COST CONTROL EXCLUDING THE EFFECT OF 1993'S SPECIAL ITEMS AND CAPITAL GAINS WE ARE CONFIDENT THAT THE COMPANY'S EXISTING BUSINESSES WILL PRODUCE GROWING PROFITS AND WILL GENERATE SUBSTANTIAL AMOUNTS OF FREE CASH FLOW MR TISCH SAID 9402100067 940210 BUSINESS BRIEF PIER 1 IMPORTS INC SPECIALTY RETAILER EXPECTS NET TO FALL BELOW ESTIMATES PIER 1 IMPORTS INC SAID IT EXPECTS EARNINGS FOR FISCAL 1994 WHICH ENDS FEB 26 TO FALL 10 TO 15 BELOW ANALYSTS' ESTIMATES OF 70 CENTS TO 72 CENTS A SHARE THE ANNOUNCEMENT WAS MADE AFTER THE MARKET HAD CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PIER 1 SHARES CLOSED AT 950 UP 125 CENTS THE IMPORT SPECIALTY RETAILER HAD REPORTED RECORD SALES OF 972 MILLION FOR THE FIVE WEEKS ENDED JAN 1 UP 118 FROM A YEAR EARLIER BUT CLARK A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT SEVERE WEATHER CONDITIONS IN JANUARY HURT SALES AT MORE THAN 60 OF THE COMPANY'S 639 STORES WITH THE PROBLEM CONTINUING INTO FEBRUARY SALES FOR THE FOUR WEEKS ENDING JAN 29 WERE ESSENTIALLY FLAT AT 412 MILLION MR JOHNSON ALSO NOTED THAT 20 STORES IN CALIFORNIA WERE AFFECTED BY THE EARTHQUAKE IN LOS ANGELES MR JOHNSON SAID THAT FORT WORTH TEXASBASED PIER 1 EXPECTS TO RESUME POSITIVE SALES GROWTH AFTER WINTER PASSES 9402100066 940210 BUSINESS BRIEF DIME FINANCIAL CORP COMPANY TO BOOST RESERVES LEADING TO 4THPERIOD LOSS DIME FINANCIAL CORP SAID IT PLANS TO INCREASE SUBSTANTIALLY ITS RESERVES FOR LOAN LOSSES AND OTHER REAL ESTATE IT OWNS RESULTING IN AN ANTICIPATED FOURTHQUARTER LOSS OF 26 MILLION DIME FINANCIAL THE WALLINGFORD CONN HOLDING COMPANY FOR DIME SAVINGS BANK OF WALLINGFORD SAID THE RESERVES WILL BE TAKEN TO COVER SIGNIFICANT LOSSES THAT MAY RESULT FROM THE POSSIBLE BULK SALE OF NONPERFORMING LOANS AND FORECLOSED REAL ESTATE THIS YEAR THE COMPANY SAID IT EXPECTS THE ADDITIONAL RESERVES TO TOTAL ABOUT 29 MILLION BUT THAT A FINAL DETERMINATION WON'T BE MADE UNTIL A CONTINUING PORTFOLIO EVALUATION IS COMPLETED THE EXPECTED QUARTERLY LOSS OF 520 A SHARE IS AGAINST YEAREARLIER EARNINGS OF 416000 OR NINE CENTS A SHARE THE ANTICIPATED 1993 LOSS OF 26 MILLION WILL REDUCE SHAREHOLDERS' EQUITY TO 39 MILLION FROM ABOUT 64 MILLION THE COMPANY SAID ITS LEVERAGE CAPITAL RATIO MAY TEMPORARILY FALL BELOW THE 6 LEVEL AGREED TO WITH REGULATORS IN FEBRUARY 1993 9402100065 940210 COMMODITIES PETROLEUMFUTURES PRICES FAIL TO RISE REFLECTING BEARISH CRUDE REPORTS DESPITE SNOWY WEATHER BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL BITTER SNOWY WEATHER IN THE MIDWEST AND NORTHEAST FAILED TO LIFT PETROLEUMFUTURES PRICES ON THE NEW YORK MERCANTILE EXCHANGE AS TRADERS STAYED FOCUSED ON BEARISH CRUDE INVENTORY REPORTS THE RESULT A 61CENTABARREL PLUNGE IN MARCH CRUDE OIL FUTURES PRICES WHICH ALSO PUSHED MARCH HEATINGOIL PRICES LOWER BY A PENNY A GALLON BOTH THE WEEKLY STATISTICS RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE AND YESTERDAY'S REPORT FROM THE DEPARTMENT OF ENERGY SHOWED SIGNIFICANT BEARISH INCREASES IN THE LEVEL OF US OIL STOCKS FOR THE WEEK ENDED FEB 4 THE API NUMBERS PUT THE INCREASE AT 498 MILLION BARRELS THE DOE SAID THE BUILDUP WAS 37 MILLION BARRELS MEANWHILE ADDING TO THE BEARISHNESS ON CRUDE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTINUES TO BE SEEN AS UNLIKELY TO CUT OUTPUT AT ITS MARCH 25 MEETING EVEN THOUGH A COUPLE OF SMALLER OPEC MEMBERS HAVE INDICATED A WILLINGNESS TO CUT SOME TRADERS SAY CRUDE PRICES HAVE APPARENTLY RECOVERED ENOUGH IN RECENT WEEKS THAT SAUDI ARABIA THE GROUP'S LINCHPIN COULD DECIDE TO MAINTAIN OUTPUT AT CURRENT LEVELS CRUDE ALSO TOOK A HIT YESTERDAY FROM A WEAKNESS IN THE MARKET FOR NORTH SEA BRENT IN EUROPE REFINERIES THERE HAVE REPORTEDLY STARTED SHUTTING DOWN FOR SCHEDULED MAINTENANCE STILL IT WAS TOUGH FOR TRADERS AND ANALYSTS WATCHING WEATHER REPORTS IN MUCH OF THE US TO FIGURE OUT WHY PETROLEUM PRICES WERE SO WEAK ESPECIALLY GIVEN THAT THE SAME INDUSTRY AND GOVERNMENT REPORTS THAT SHOWED A BUILDUP IN CRUDE INVENTORIES SHOWED DRAMATIC DECREASES IN THE NATION'S DISTILLATE HEATING OIL AND DIESEL FUEL SUPPLIES THE API NUMBERS PUT DISTILLATE STOCKS 421 MILLION BARRELS LOWER WHILE THE DOE REPORT SAID DISTILLATE STOCKS FELL A WHOPPING 84 MILLION BARRELS NATIONWIDE GIVEN THOSE STATISTICS AND THE WEATHER IT'S A BAFFLEMENT HOW HEATING OIL CAN BE SO WEAK SAID ANDREW DICKSON WITH GSC ENERGY CORP IN ATLANTA CRUDE IS REALLY WEIGHING ON THE MARKET MARCH CRUDE SETTLED AT 1460 A BARREL WELL BELOW THE PSYCHOLOGICALLY IMPORTANT 15 LEVEL ONCE IT WENT BELOW 15 CRUDE JUST SENT A CHILL OVER PRODUCTS MR DICKSON SAID MARCH HEATING OIL FELL TO 4940 CENTS A GALLON DOWN 117 CENTS MARCH GASOLINE WAS OFF EVEN MORE 132 CENTS TO 4335 CENTS A GALLON EVEN NATURALGAS WHICH HAS BEEN SOMEWHAT IMMUNE TO CRUDE'S PRICE SLIDES LOST 53 CENTS ON THE MARCH CONTRACTS TO CLOSE AT 2358 PER MILLION BRITISH THERMAL UNITS IN FACT SOME MARKET OBSERVERS ARE WORRIED THAT THE TRUE WEAKNESS IN CRUDE IS BEING MASKED SOMEWHAT BY THE WEATHERRELATED DEMAND FOR HEATING OIL MR DICKSON SAID SOME US REFINERS ARE TRYING TO POSTPONE MAINTENANCE BECAUSE HEATING OIL IS VERY PROFITABLE RIGHT NOW THE API AND DOE REPORTS BEAR THAT OUT BOTH SHOWED INCREASES IN REFINERY OPERATING RATES EVEN THOUGH MANY EXPECTED RATES TO ALREADY BE DECLINING FOR SEASONAL MAINTENANCE MR DICKSON AND OTHER MARKET PARTICIPANTS SAY THAT ONCE THOSE REFINERIES DO START TAKING CARE OF MAINTENANCE REQUIREMENTS CRUDE INVENTORIES WILL BUILD MORE PUTTING MORE PRESSURE ON PRICES IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES ROSE IN A DAY OF TECHNICALLYINSPIRED BUYING ANTICIPATING A PERIOD OF SEASONAL STRENGTH FOR US GRAIN MARKETS AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS UP 650 CENTS TO 37575 A BUSHEL MARCH CORN ROSE FOUR CENTS TO 29550 A BUSHEL AND MARCH SOYBEANS WERE UP FOUR CENTS TO 67850 A BUSHEL MIDFEBRUARY IS TRADITIONALLY A PERIOD OF RISING PRICES AT THE CBOT'S GRAIN MARKET AND TRADERS MAY HAVE BEEN ANTICIPATING THE PERIOD BY BIDDING PRICES HIGHER SAID DANIEL W BASSE MARKETRESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO MOREOVER MR BASSE SAID PEOPLE ARE CONCERNED A BIT ABOUT THE HEAVY SNOWS WE'VE RECEIVED AND FLOODING THAT COULD RESULT WITH SOIL MOISTURE ALREADY SATURATED PRECIOUS METALS PRECIOUSMETALS PRICES CONTINUED TO WORK THEIR WAY HIGHER AFTER LAST WEEK'S SHARP SELLOFF AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS UP 160 TO 38570 AN OUNCE WHILE THE PRICE OF THE ACTIVELY TRADED SILVERFUTURES CONTRACT ROSE SEVEN CENTS TO 534 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE THE APRIL PLATINUMFUTURES CONTRACT CLIMBED 210 TO 39370 AN OUNCE ANALYSTS SAID GOLD REMAINS LOCKED IN A TIGHT TRADING RANGE OF ABOUT 380 AN OUNCE TO 390 AN OUNCE SUPPORTED ON THE LOW END OF THE RANGE BY PHYSICAL DEMAND FROM JEWELRY MAKERS AND OTHERS BUT ABANDONED BY THESE SAME BUYERS WHEN PRICES RISE ABOVE 390 AN OUNCE 9402100063 940210 CREDIT MARKETS BOND PRICES CLIMB AS MARKET'S MOOD IMPROVES AUCTION OF 10YEAR NOTES HAS DECENT RECEPTION BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK SENTIMENT IMPROVED IN THE BATTERED BOND MARKET YESTERDAY AS TRADERS GAVE THE GOVERNMENT'S AUCTION OF NEW 10YEAR NOTES A DECENT RECEPTION THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR MORE THAN 500 FOR A BOND WITH A 1000 FACE VALUE TO 97 28/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 640 FROM 645 ON TUESDAY THE IMPROVEMENT IN PRICES YESTERDAY BROKE A FOURDAY LOSING STREAK THAT SNOWBALLED WHEN THE FEDERAL RESERVE PUSHED SHORTTERM INTEREST RATES SLIGHTLY HIGHER LAST WEEK THE AUCTION WENT REASONABLY WELL SAID MARK GRANT MANAGING DIRECTOR OF FIXED INCOME AT JOSEPTHAL LYON & ROSS A NEW YORK INVESTMENTBANKING FIRM IT WENT A LOT BETTER THAN THE DEALERS ON WALL STREET WERE EXPECTING THE TREASURY DEPARTMENT'S 12 BILLION OFFERING OF 10YEAR NOTES WAS THE HIGHLIGHT OF AN OTHERWISE UNEVENTFUL SESSION THE TREASURY AWARDED THE 10YEAR NOTES AT AN AVERAGE YIELD OF 592 WITH A HIGH YIELD OF 593 THE COUPON WAS SET AT 5875 GOING INTO THE AUCTION TRADERS HAD FRETTED THAT DEMAND FOR THE 10YEAR NOTES WOULD BE WEAK WITH THE 30YEAR BOND AUCTION STILL AHEAD TODAY AND THE PRODUCER PRICE INDEX DATA DUE TOMORROW THEY REASONED THAT FEW INVESTORS WOULD BE LIKELY TO VENTURE OUT OF THEIR FOXHOLES IN FACT THEY WERE RIGHT BUT SUFFICIENT DEMAND EMERGED FROM ARBITRAGE TRADES AND FROM DEALERS COVERING SHORTS THAT THE AUCTION WENT FAIRLY WELL IN A SHORT SALE A TRADER BETS THAT PRICES WILL FALL BY SELLING BORROWED SECURITIES IN THE HOPES OF BEING ABLE TO REPLACE THEM AT A LOWER PRICE AND POCKETING THE DIFFERENCE YOU WOULD HAVE THOUGHT THAT THE 10YEAR WAS GOING TO BE THE UGLY DUCKLING BUT IT TURNED OUT TO BE A BIT OF A CINDERELLA STORY SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG THE 10YEAR NOTE WENT FAIRLY WELL MR GRANT SAYS HE THINKS THE 11 BILLION AUCTION OF 30YEAR BONDS WILL MEET WITH STRONG DEMAND AND GARNER A YIELD BETWEEN 645 AND 650 BUT WORRIES ABOUT THE JANUARY PRODUCERPRICE INDEX WHICH IS A POPULAR MEASURE OF INFLATION COULD DAMP ENTHUSIASM SAYS MR GRANT MANY ECONOMISTS EXPECT THE PRICE INDEX TO POST AN INCREASE OF 03 WHEN THE VOLATILE FOOD AND ENERGY SECTORS ARE EXCLUDED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN AT YESTERDAY'S AUCTION THE BIDCOVER RATIO WHICH IS A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS RECEIVED AND THOSE ACCEPTED CAME IN NEAR AVERAGE AT 258TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT BIDS PLACED FROM OUTSIDE THE WALL STREET DEALER COMMUNITY WERE ON THE SOFT SIDE AT 466 MILLION ALTHOUGH THE RESULTS WEREN'T STELLAR TRADERS SAID THEY HAD TO BE LOOKED AT IN THE CONTEXT OF THE BEARISH TONE IN THE MARKET IN THE LAST FEW DAYS THERE WAS A GOOD BID FOR THE 10YEAR SAID PAUL MCCORMACK MANAGER OF GOVERNMENT SECURITIES TRADING AT CHASE SECURITIES TODAY'S 30YEAR BOND AUCTION ISN'T EXPECTED TO POSE MUCH OF A PROBLEM FOR THE MARKET WITH THE TREASURY DEPARTMENT HAVING SCALED BACK THE AMOUNT OF 30YEAR SECURITIES IT SELLS AND BONDS ONLY BEING SOLD TWICE A YEAR TRADERS EXPECT SOLID DEMAND FOR THE ISSUE AT THE SAME TIME ANALYSTS SAY THE BOND MARKET IS PROBABLY ALREADY PRICED FOR BAD NEWS FROM THE PPI MOST ECONOMISTS ARE FORECASTING A 04 RISE IN THE OVERALL PPI AND A 03 GAIN ONCE THE FREQUENTLY VOLATILE FOOD AND ENERGY COMPONENTS ARE FACTORED OUT WE BELIEVE THAT INSTITUTIONAL INVESTORS HAVE STAYED ON THE SIDELINES DURING THIS REFUNDING AND WE ALSO BELIEVE THE MARKET HAS PRICED IN A 06 INCREASE IN THE PPI SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ SO CUSTOMERS HAVE CASH TO BE INVESTED AND THAT CASH WILL BE INVESTED FOLLOWING THE PPI FRIDAY 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 NOTES ARE DATED FEB 15 AND MATURE FEB 15 2004 NEXTEL COMMUNICATIONS INC APPEARED TO FIND GOOD INVESTOR DEMAND WHILE RAISING 700 MILLION IN A JUNKBOND OFFERING THAT WAS PRICED LATE YESTERDAY TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH PRICES FOLLOWING TREASURYS UP ABOUT 1/2 POINT TRADING WAS ALSO SLOW IN THE JUNKBOND MARKET WITH PRICES UNCHANGED HOWEVER BONDS OF USAIR INC TRADED DOWN WHILE THE BONDS OF NL INDUSTRIES INC AND VENTURE HOLDINGS TRUST ROSE NEXTEL'S OFFERING WENT VERY VERY WELL SAID AN OFFICIAL AT LEAD UNDERWRITER MERRILL LYNCH WHO NOTED THAT THE PROCEEDS FROM THE OFFERING WERE INCREASED FROM AN ORIGINALLY PLANNED 400 MILLION THE FACE VALUE OF THE OFFERING WAS 113 BILLION NEXTEL PROVIDES SPECIALIZED MOBILE RADIO NETWORKS FOR TAXI CABS PLUMBERS AND TRUCKERS ACROSS THE COUNTRY NEXTEL SOLD 10YEAR SENIOR REDEEMABLE DISCOUNT NOTES AT 62143 TO YIELD 975 THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND NO INTEREST WILL BE PAID DURING THAT TIME NEXTEL PUSHED UP THE EXPECTED YIELD OF THE NOTES TO COMPENSATE FOR THE DEAL'S LARGE SIZE RISING INTEREST RATES IN THE TREASURY MARKET ALSO CONTRIBUTED TO THE DECISION TO BOOST THE YIELD FROM ITS ORIGINAL 9375 LEVEL SYNDICATE OFFICIALS SAID WHILE THERE HAS BEEN STRONG INTEREST IN SPECIALIZED MOBILE RADIO NETWORKS SOME MARKET WATCHERS ARE SKEPTICAL ABOUT THE INDUSTRY'S OUTLOOK THESE COMPANIES HAVE A LOT OF PROMISE BUT NOT A LOT OF MONEY GENERATED ONE SYNDICATE OFFICIAL SAID THERE'S NOT A LOT OF FAVOR TOWARD TECHNOLOGY INVESTMENTS RIGHT NOW THERE'S A KIND OF TECH WRECK' GOING ON IN THE EQUITY AND DEBT MARKETS IN THE JUNKBOND MARKET THE PRICE OF USAIR BONDS DROPPED ON NEWS THAT THE AIRLINE IS SLASHING RATES BY AS MUCH AS 50 ON SOME EAST COAST ROUTES USAIR'S 10 COUPON GUARANTEED SENIOR NOTES MATURING IN 2003 DROPPED 175 POINTS OR 1750 FOR A BOND WITH A 1000 FACE VALUE TO 98 THE YIELD ROSE FROM 1003 TO 1030 TWO UNITS OF NORTHWEST AIRLINES CORP HAVE BEGUN MARKETING NEARLY 400 MILLION IN DEBT SECURITIES IN THE COMPANY'S FIRST RETURN TO FINANCIAL MARKETS SINCE A NEAR BRUSH LAST SUMMER WITH BANKRUPTCY THE DEBT OFFERINGS ARE DESIGNED TO SET A POSITIVE TONE AHEAD OF NORTHWEST AIRLINES'S PLANNED INITIAL PUBLIC STOCK OFFERING AS WELL AS A JUNKBOND SALE BY ITS OPERATING UNIT NORTHWEST AIRLINES INC NEXT MONTH THOSE TWO TRANSACTIONS WILL TOTAL NEARLY 1 BILLION THE EARLY RESPONSE BY INVESTORS HAS BEEN POSITIVE ACCORDING TO PERSONS FAMILIAR WITH THE TRANSACTION IT'S A SIGN OF CONFIDENCE IN THE FINANCIAL MARKETS AND CONFIDENCE BEGETS MORE CONFIDENCE SAID GLENN ENGEL AN EQUITY ANALYST AT GOLDMAN SACHS THE DEBT OFFERINGS PROVIDE FINANCING FOR THE NATION'S FOURTHLARGEST AIRLINE AT ATTRACTIVE RATES AND BOOST ITS LIQUIDITY THE ANALYST ADDED GOLDMAN SACHS ISN'T INVOLVED IN THE SECURITIES SALE HOWEVER THE OFFERINGS ARE ONLY A FIRST STEP IN NORTHWEST'S EFFORTS TO REDUCE ITS LARGE DEBT BURDEN WHICH TOTALS ABOUT 45 BILLION INVESTOR CONFIDENCE HAS RISEN AS THE AIRLINE HAS POSTED TWO CONSECUTIVE PROFITABLE QUARTERS THE NORTHWEST SUBSIDIARIES CURRENTLY ARE MARKETING A 243 MILLION STRUCTURED AIRCRAFTFINANCE TRANSACTION AND A 150 MILLION STRUCTURED ACCOUNTSRECEIVABLES FINANCING ACCORDING TO A PERSON CLOSE TO THE TRANSACTION PROCEEDS FROM THE MINNEAPOLISBASED AIRLINE'S FINANCINGS ARE EXPECTED TO BE USED PRIMARILY TO PAY DOWN DEBT AT NORTHWEST WHICH WAS TAKEN PRIVATE IN 1989 IN A 365 BILLION LEVERAGED BUYOUT COMPANY OFFICIALS DECLINED TO COMMENT MUNICIPALBOND SELLERS TOOK A BREATHER YESTERDAY AFTER DUMPING MUNIS FOR FOUR CONSECUTIVE SESSIONS AND PRICES WERE NARROWLY MIXED WITH THE TAXEXEMPT BOND MARKET JITTERY ABOUT THE TREASURY'S DEBT AUCTIONS AND THE COMING PRODUCERPRICE INDEX REPORT SOME MUNI SPECIALISTS WERE RELUCTANT TO READ A LOT INTO THE SESSION'S SCATTERED GAINS IN PRIMARY DEALINGS EARLIER YESTERDAY A MERRILL LYNCH GROUP WON BOSTON'S 85 MILLION OF REFUNDING GENERAL OBLIGATION BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 48192 YIELDS RANGE FROM 240 IN JULY 1994 TO 515 IN 2011 MORTGAGES MADE LATEAFTERNOON GAINS WITH US TREASURYS YESTERDAY AFTER THE SUCCESSFUL AUCTION OF A NEW TREASURY 10YEAR NOTE WHICH ACTS AS A PRICE BENCHMARK FOR 30YEAR MORTGAGE SECURITIES PRICES HAD BEEN SLIGHTLY BETTER THROUGHOUT EARLY TRADING BUT IT WAS THE DECENT RECEPTION WALL STREET GRANTED THE NOTE SALE THAT MADE FOR THE BRUNT OF THE GAINS IN BOTH MORTGAGES AND TREASURYS MOST OF THE DAY'S TRADING THOUGH TOOK PLACE BETWEEN DEALERS RETAIL INVESTORS WEREN'T ACTIVE SAYS ALLEN SIEGAL HEAD OF MORTGAGEBACKED SECURITIES TRADING AT CS FIRST BOSTON AMONG PRICES OF 65 SECURITIES FOR MARCH DELIVERY GINNIE MAES WERE UP 12/32 AT 98 24/32 FREDDIE MAC GOLDS WERE AT 98 28/32 AND FANNIE MAES CHANGED HANDS AT 98 22/32 MORE PROOF OF AN EBBING HOMEOWNER REFINANCING CAME FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE AGENCY REPORTED THAT ITS JANUARY COMMITMENTS TO PURCHASE MORTGAGES FELL TO 62 BILLION IN JANUARY FROM 85 BILLION IN DECEMBER WHILE MORTGAGE PURCHASES FELL TO 79 BILLION IN JANUARY FROM 121 BILLION IN DECEMBER THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9402100062 940210 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BETHLEHEM STEEL CORP AN OFFERING OF 12 MILLION COMMON SHARES VIA SALOMON BROTHERS INC JP MORGAN SECURITIES INC AND MORGAN STANLEY & CO STYLES ON VIDEO INC A PROPOSED OFFERING OF UP TO ONE MILLION COMMON SHARES TRANSTEXAS GAS CORP AN INITIAL OFFERING OF FIVE MILLION COMMON SHARES VIA JEFFERIES & CO VIRGIN INTERACTIVE ENTERTAINMENT PLC AN OFFERING OF 1850000 AMERICAN DEPOSITARY SHARES OR ADS EACH ADS REPRESENTING ONE ORDINARY SHARE OF VIRGIN INTERACTIVE VIA CS FIRST BOSTON AND PIPER JAFFRAY INC 9402100061 940210 INTERNATIONAL BRIEF RENAULT SA TRUCK DIVISION SEES GROWTH IN 1994 EUROPEAN MARKET DEMAND FOR TRUCKS IN EUROPE IS EXPECTED TO RECOVER IN 1994 AFTER A MAJOR SLUMP IN 1993 THE TRUCKBUILDING DIVISION OF FRENCH STATECONTROLLED AUTO GROUP RENAULT SA SAID RENAULT VEHICULES INDUSTRIELS SAID THE FRENCH MARKET COULD GROW BY 14 OR 4100 VEHICLES THIS YEAR TO ABOUT 32000 VEHICLES AFTER PLUNGING BY 21 IN 1993 THE OVERALL EUROPEAN MARKET FOR TRUCKS OF MORE THAN FIVE TONS FELL 22 LAST YEAR AND ALL COUNTRIES APART FROM THE UK WHERE TRUCK SALES ROSE 15 WERE AFFECTED DESPITE THE WEAK DEMAND RVI'S EUROPEAN MARKET SHARE IMPROVED TO 93 LAST YEAR FROM 91 IN 1992 BOOSTED BY GROWTH IN FRANCE 9402100060 940210 BUSINESS BRIEF VIRGIN INTERACTIVE ENTERTAINMENT INITIAL OFFERING IS PLANNED BY VIDEO GAME DEVELOPER VIRGIN INTERACTIVE ENTERTAINMENT PLC A DEVELOPER OF VIDEOGAME AND ENTERTAINMENT SOFTWARE SAID IT FILED FOR AN INITIAL PUBLIC OFFERING OF 1850000 AMERICAN DEPOSITARY SHARES VIRGIN INTERACTIVE IN IRVINE CALIF IS CONTROLLED BY BRITISH AIRLINE EXECUTIVE RICHARD BRANSON AND BRANSON FAMILY TRUSTS WHICH TOGETHER WOULD OWN 62 OF THE COMPANY AFTER THE OFFERING OTHER MAJOR HOLDERS INCLUDE BLOCKBUSTER ENTERTAINMENT CORP WHICH WOULD HOLD 20 AND HASBRO INC WHICH WOULD OWN 16 VIRGIN INTERACTIVE'S SOFTWARE PRODUCTS ARE USABLE IN SUCH CONSUMERHARDWARE SYSTEMS AS NINTENDO AND SEGA AND WITH PERSONAL COMPUTER AND CDROM SYSTEMS OF THE SHARES OFFERED ONE MILLION WILL BE SOLD BY VIRGIN INTERACTIVE AND 850000 BY CERTAIN SHAREHOLDERS THE UNDERWRITING SYNDICATE FOR THE OFFERING IS MANAGED BY CS FIRST BOSTON AND PIPER JAFFRAY INC VIRGIN INTERACTIVE SAID IT APPLIED FOR TRADING ON THE NASDAQ STOCK MARKET 9402100059 940210 WMX SHARES PLUNGE ON NEWS OF PROFIT DROP ANALYSTS TAKEN BY SURPRISE COMPANY SAYS PROBLEM GOES BEYOND RECESSION BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC STUNNED INVESTORS WITH ITS SECOND STRAIGHT QUARTER OF LOWERTHANANTICIPATED PROFIT AND INDICATED MORE TROUBLE LIES AHEAD SENDING THE WASTE CONCERN'S SHARES PLUNGING 115 ON VOLUME OF NEARLY 15 MILLION SHARES IN WRITTEN ANNOUNCEMENTS AND IN A LENGTHY CONFERENCE CALL WITH ANALYSTS AND INVESTORS WMX ACKNOWLEDGED IN FAR STRONGER LANGUAGE THAN IT PREVIOUSLY HAD THAT ITS PROBLEMS GO BEYOND THE RECENT RECESSION IT ALSO ACKNOWLEDGED THAT ITS CREDIBILITY WITH WALL STREET HAS BEEN DAMAGED AND SAID IT HOPES TO PUT AN END TO NEGATIVE EARNINGS SURPRISES SHARES IN WMX BASED IN OAK BROOK ILL AND FORMERLY KNOWN AS WASTE MANAGEMENT INC FELL 325 TO 25 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CLIPPING 157 BILLION FROM THE COMPANY'S STOCKMARKET VALUE THE COMPANY ANNOUNCED TUESDAY NIGHT THAT FOURTHQUARTER PROFIT SKIDDED 11 TO 1629 MILLION OR 34 CENTS A SHARE FROM 1828 MILLION OR 37 CENTS A SHARE A YEAR EARLIER YESTERDAY'S TRADING WAS LIKE A REPLAY OF WHAT HAPPENED OCT 20 WHEN WMX SHARES PLUNGED 17 TO 24 AFTER THE COMPANY POSTED LOWERTHANEXPECTED THIRDQUARTER RESULTS SINCE THEN SUPPORT FOR THE WIDELY OWNED STOCK HAS SLOWLY BEEN REBUILT AND IN RECENT WEEKS SEVERAL ANALYSTS HAVE ENTHUSIASTICALLY RECOMMENDED WMX SHARES ONLY TO BE EMBARRASSED BY YESTERDAY'S BAD NEWS THE FUNDAMENTAL PROBLEM IN THE TRASH BUSINESS REMAINS A GLUT OF DISPOSAL CAPACITY IN MANY MARKETS LEADING TO CUTTHROAT PRICING AS MUCH AS ANALYSTS HAVE HOPED THAT ECONOMIC RECOVERY WOULD IMPROVE THE INDUSTRY'S OUTLOOK BY INCREASING WASTE VOLUMES SO MUCH EXCESS DUMP AND INCINERATOR CAPACITY EXISTS IN SOME AREAS THAT PRICES COULD FALL FURTHER RATHER THAN REBOUND DEAN L BUNTROCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WMX SAID THE RAVAGES OF RECESSION HAD MASKED TO A CERTAIN EXTENT SOME IMPORTANT STRUCTURAL CHANGES ALSO HURTING THE COMPANY'S BUSINESS PREVIOUSLY MR BUNTROCK HAD TOLD INVESTORS THAT MOSTLY WHAT THE COMPANY NEEDED WAS AN ECONOMIC RECOVERY ANALYSTS HAD EXPECTED FOURTHQUARTER EARNINGS TO RISE ALEX BROWN & SONS' HUGH F HOLMAN WHO UPGRADED THE STOCK TO A STRONG BUY ON JAN 21 HAD PROJECTED 38 CENTS A SHARE VISHNU SWARUP OF PRUDENTIAL SECURITIES LAST MONTH CALLING THE PURCHASE OF WMX OUR SINGLE BEST IDEA ALSO THOUGHT 38 CENTS HOPING TO AVOID FUTURE DISAPPOINTMENTS WMX SAID ITS TARGET FOR 1994 IS NOW PERSHARE PROFIT GROWTH OF 5 TO 10 JAMES KOENIG WMX'S CHIEF FINANCIAL OFFICER SAID OF THE ANALYSTS' OVERLY OPTIMISTIC PROJECTIONS PART OF OUR PROBLEM IS OUR INTERNAL EXPECTATIONS HAVE BEEN AGGRESSIVE BY ANNOUNCING A 1994 TARGET RANGE WE ARE TRYING TO GET EVERYONE ON THE SAME PAGE THIS IS THE BEST INFORMATION WE HAVE AS ONE OF THE GREAT GROWTH STOCKS OF THE 1970S AND 1980S WMX ISN'T ACCUSTOMED TO DISCOURAGING ENTHUSIASM BUT THAT'S NOW ONE OF MR KOENIG'S JOBS THUS DESPITE HOPEFUL SIGNS ON PRICING MENTIONED BY MR SWARUP MR KOENIG SAID PRICES OVERALL FELL 1 IN THE FOURTH QUARTER AND WHILE MR HOLMAN WAS SPECULATING THAT THE LOS ANGELES EARTHQUAKE MIGHT RIVAL LAST YEAR'S LUCRATIVE CLEANUP WORK FROM HURRICANE ANDREW MR KOENIG SAID HE SEES NO GAIN FROM THE QUAKE WMX ALSO SAID FIRSTQUARTER PERSHARE PROFIT WOULD FALL TO 34 CENTS FROM 41 CENTS A YEAR AGO WHEN NET INCOME WAS 1993 MILLION THE DECLINES IN THE FOURTH AND FIRST QUARTERS PARTLY STEM FROM A REORGANIZATION EFFORT IN THE NORTH AMERICAN TRASH COLLECTION AND DISPOSAL BUSINESS THE COMPANY SAID ANALYSTS SAID THE COMPANY'S ANNOUNCED TARGET SEEMS TO INDICATE THAT WALL STREET PROFIT PROJECTIONS FOR SOME OF WMX'S MAJORITYOWNED UNITS CHEMICAL WASTE MANAGEMENT INC WHEELABRATOR TECHNOLOGIES INC WASTE MANAGEMENT INTERNATIONAL PLC AND RUST INTERNATIONAL INC MAY BE TOO HIGH MR KOENIG WOULDN'T COMMENT ON THAT BUT SHARPLY REDUCED CAPITAL SPENDING INCLUDING FOR ACQUISITIONS TO A PLANNED 155 BILLION THIS YEAR FROM ABOUT 25 BILLION IN 1993 WILL MAKE GROWTH HARDER TO COME BY IN THOSE BUSINESSES AS WELL AS THE TRASH OPERATION 9402100058 940210 INTERNATIONAL CLINTON ORDERS THE OPENING OF BNL FILES BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A MOVE THAT WILL REOPEN A CONGRESSIONAL PROBE OF THE BUSH ADMINISTRATION'S DEALINGS WITH IRAQ BEFORE THE PERSIAN GULF WAR PRESIDENT CLINTON HAS ORDERED FEDERAL AGENCIES TO MAKE PUBLIC THEIR FILES ON THE BANCA NAZIONALE DEL LAVORO CASE IN A LETTER TO HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS PRESIDENT CLINTON SAID HE ALSO WILL GIVE COMMITTEE INVESTIGATORS ACCESS TO WHAT ARE BELIEVED TO BE LARGE FILES OF CLASSIFIED DOCUMENTS DEALING WITH THE CASE THOSE DOCUMENTS WOULD REMAIN CLASSIFIED HOWEVER AND UNAVAILABLE TO THE PUBLIC THE BNL CASE INVOLVES A WIDESPREAD ARMSPROCUREMENT NETWORK USED BY THE IRAQIS TO BUY ARMSRELATED EQUIPMENT FROM COMPANIES IN THE US CHILE AND EUROPE PRIOR TO THE GULF WAR THIS ADMINISTRATION BELIEVES THAT THE AMERICAN PEOPLE HAVE GOOD REASON TO LEARN THE DETAILS OF THE US GOVERNMENT'S MILITARY DIPLOMATIC AND ECONOMIC ASSISTANCE TO SADDAM HUSSEIN'S REGIME THE PRESIDENT WROTE MR GONZALEZ HIS LETTER WAS RELEASED YESTERDAY REP GONZALEZ WHO HAS CHARGED THAT PRESIDENT BUSH'S AIDES ORGANIZED A COVERUP IN THE CASE SAID HE WILL RESUME THE INVESTIGATION IMMEDIATELY HE PROMISED TO TELL THE AMERICAN PUBLIC THE FULL TRUTH ABOUT THE BNL SCANDAL THE MOVE IS EXPECTED TO SHED LIGHT ON A TILT TOWARD IRAQ BY THE BUSH ADMINISTRATION THAT CONTINUED ALMOST TO THE EVE OF THE GULF WAR ONE OF THE CHARGES EXPLORED BY MR GONZALEZ IS THAT THE US AND ITALIAN GOVERNMENTS MAY HAVE KNOWN THAT THE ATLANTA BRANCH OF ITALIAN GOVERNMENTOWNED BNL WAS BEING USED FOR BACKDOOR FINANCING OF IRAQ'S ARMS NEEDS USING LOANS BORROWED FROM OTHER US BANKS IN A RELATED DEVELOPMENT MEMBERS OF A COMMISSION APPOINTED BY THE ITALIAN SENATE TO INVESTIGATE THE CASE REJECTED YESTERDAY A DRAFT REPORT THAT SAID BNL WAS THE VICTIM OF A FRAUD PERPETRATED BY ITS ATLANTA BRANCH THE COMMISSION IS BELIEVED TO BE PUSHING FOR A VERSION THAT REMOVES THE VICTIM THEORY WE DON'T WANT TO GIVE THE IMPRESSION THAT THE SENATE SACRIFICED ITS SEARCH FOR TRUTH AT THE ALTAR OF A MISPLACED SENSE OF NATIONAL DUTY AND PUT ALL THE BLAME ON BNL'S EXATLANTA BRANCH MANAGER CHRIS DROGOUL THE EXCOMMUNIST DEMOCRATIC PARTY OF THE LEFT SAID IN A STATEMENT IT'S CONTRADICTORY TO CLAIM THAT BNL IS A VICTIM EVEN IF ITS MANAGERS WERE RESPONSIBLE IN DECEMBER A US COURT SENTENCED MR DROGOUL TO 37 MONTHS IN PRISON FOR HIS ROLE IN GRANTING THE LOANS TO IRAQ DURING THE 198088 IRANIRAQ WAR MOST OF THE LOANS WEREN'T AUTHORIZED BY SENIOR BNL MANAGERS AND MANY OF THEM ILLEGALLY CARRIED US EXPORTIMPORT BANK GUARANTEES MR DROGOUL MANAGED THE ATLANTA OFFICE FROM 1984 UNTIL IT WAS RAIDED BY THE FEDERAL BUREAU OF INVESTIGATION IN 1991 9402100057 940210 DIVIDEND NEWS ATMOS ENERGY CORP ATMOS ENERGY CORP DALLAS SAID IT APPROVED A 3FOR2 SPLIT OF ITS COMMON STOCK WITH A RECORD DATE 15 DAYS AFTER REQUIRED REGULATORY APPROVALS THE NATURALGAS SERVICE COMPANY SAID SHAREHOLDERS WILL RECEIVE ONE NEW SHARE FOR EVERY TWO SHARES HELD WITH FRACTIONAL SHARES BEING PAID IN CASH THE SPLIT WILL INCREASE SHARES OUTSTANDING TO SLIGHTLY MORE THAN 15 MILLION FROM ABOUT 10 MILLION ATMOS ALSO SAID THE QUARTERLY DIVIDEND OF 33 CENTS A SHARE ANNOUNCED YESTERDAY WOULD BE ADJUSTED TO 22 CENTS A SHARE IF THE RECORD DATE FOR THE STOCK SPLIT OCCURS PRIOR TO FEB 25 9402100056 940210 INDUSTRY FOCUS FOR ELECTRICAL UTILITIES THE FUTURE IS LESS THAN BRIGHT EMBOLDENED SOME USERS PUSH FOR RATE CUTS OTHERS FOR RETAIL WHEELING' BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL AS INDUSTRIAL CUSTOMERS GO TOSCO CORP'S HUGE 200000BARRELADAY BAYWAY REFINERY IN LINDEN NJ OUGHT TO BE A PRIZE CATCH FOR AN ELECTRIC UTILITY IT'S HUGE COMPLEX AND A LARGE CONSUMER OF POWER AND IT'S NOT LIKELY TO GO ANYWHERE BUT LAST SUMMER TOSCO SENT ITS ELECTRIC SUPPLIER PUBLIC SERVICE ELECTRIC & GAS CO A STIFF MESSAGE REDUCE RATES OR THE COMPANY WILL TAKE STEPS TO GENERATE ITS OWN POWER WITH ONE OF ITS BIGGEST CUSTOMERS SUDDENLY ONE OF ITS MOST THREATENING PSE&G SAW LITTLE ALTERNATIVE IT QUICKLY COBBLED TOGETHER A RATE CUT OF 9 MILLION A YEAR OR 23 THINGS COULD HAVE BEEN WORSE FOR INSTANCE NEW YORK STATE ELECTRIC & GAS CO WATCHED A UNIT OF GENERAL MOTORS CORP LEAVE ITS SYSTEM IN JULY 1992 TO BUILD A FACILITY THAT WOULD MEET ITS APPROXIMATELY 200MEGAWATT POWER DEMAND THE BINGHAMTON NY UTILITY LACKED REGULATORS' PERMISSION TO BARGAIN SUCH DRAMAS ARE PLAYED OUT DAILY IN THE ELECTRICUTILITY INDUSTRY AS ALTERNATIVE POWER SOURCES BECOME MORE AVAILABLE INDUSTRIAL CUSTOMERS ARE JAWBONING RATES DOWN AT THE SAME TIME UTILITIES ARE SCRAMBLING TO OFFSET THE LOST REVENUE WITH EXTENSIVE COSTCUTTING AND LAYOFFS UTILITIES ALSO FEAR THAT ACCELERATING DEREGULATION COULD LEAD TO TRUE PRICE COMPETITION THE DISMAL OUTLOOK HAS SENT UTILITY STOCKS PLUNGING AND THE SITUATION HAS BEEN AGGRAVATED BY A HARSH WINTER IN THE PAST SEVERAL WEEKS BITTER COLD FORCED ELECTRIC UTILITIES IN PENNSYLVANIA NEW JERSEY AND MARYLAND TO INSTITUTE ROLLING BLACKOUTS DUE TO INABILITY TO MEET SHARPLY HIGHER DEMAND FROZEN COAL PILES COMBINED WITH AN INABILITY TO ACQUIRE ENOUGH NATURAL GAS HAMPERED EFFORTS TO ADD CAPACITY MEANWHILE AT ONE COMPANY GENERAL PUBLIC UTILITIES CORP PARSIPPANY NJ POOR WEATHER CONDITIONS PREVENTED DIESELFUEL TRUCKS FROM REACHING CRUCIAL PEAKING UNITS THE FIVEMONTHLONG PLUNGE IN THE DOW JONES UTILITY AVERAGE TELLS PART OF THE STORY THE AVERAGE HAS DROPPED FROM 25534 ON SEPT 1 1993 TO 21896 YESTERDAY JAY DOBSON AN ELECTRICUTILITIES ANALYST WITH SMITH BARNEY SHEARSON INC HAS SLASHED HIS RECOMMENDED LIST TO THREE FROM 17 IN LITTLE MORE THAN A YEAR THERE'S NOT A COMPELLING REASON TO STAY IN THE GROUP SAYS MR DOBSON HISTORICALLY PEOPLE HAVE OWNED UTILITY STOCKS FOR DIVIDEND GROWTH AND AS A HEDGE AGAINST INFLATION BUT THERE'S VERY LITTLE IF ANY DIVIDEND GROWTH PROSPECTS RIGHT NOW AND SKITTISH INVESTORS MAY BE IN FOR MORE BAD NEWS SEVERAL ANALYSTS BELIEVE UTILITIES WILL NEED TO RETREAT FROM THEIR TRADITIONALLY HIGH DIVIDENDS IN ORDER TO PRESERVE CASH AND EFFECTIVELY COMPETE FOR CUSTOMERS EARLIER THIS YEAR CENTERIOR ENERGY CORP CLEVELAND HALVED ITS DIVIDEND AND TOOK A 1 BILLION CHARGE IT CITED INCREASING COMPETITION AND THE UNLIKELIHOOD THAT IT WOULD BE ABLE TO RAISE RATES TO PAY FOR DEFERRED CONSTRUCTION EXPENSES BESET BY INCREASING COMPETITION WHICH STEMS FROM THE GRADUAL DEREGULATION OF THE INDUSTRY SINCE 1978 ELECTRIC UTILITIES HAVE BEGUN SLASHING STAFF WITH A RELISH MORE TYPICAL OF INDUSTRIALGOODS MAKERS NEW YORK STATE ELECTRIC & GAS IS IN THE MIDDLE OF A 12MONTH PROGRAM TO CUT 800 POSITIONS OR 16 OF ITS WORK FORCE PECO ENERGY CORP PHILADELPHIA REDUCED ITS WORK FORCE FROM 12000 TO 9400 IN THE PAST THREE YEARS AND NIAGARA MOHAWK POWER CORP SYRACUSE NY IS IN THE MIDST OF CUTTING 900 POSITIONS OR 8 OF ITS STAFF TO BE SURE MANY UTILITIES HAVE CUT COSTS BY REFINANCING PILES OF DEBT PECO ENERGY HAS TURNED OVER ABOUT 44 BILLION IN THE PAST FOUR YEARS SAVING MORE THAN 190 MILLION ANNUALLY BUT EVEN SAVINGS ON INTEREST EXPENSE CAN'T BREAK THE GRIM OUTLOOK MANY HAVE BEEN REFINANCING THEIR DEBT AND CUTTING JOBS BUT THOSE EFFORTS HAVE ONLY SEEMED TO HELP THEM HOLD THEIR GROUND SAYS BARRY ABRAMSON A UTILITIES ANALYST AT PRUDENTIAL SECURITIES INC IT'S LIKE THEY'RE TREADING WATER MOREOVER UTILITIES FACE THE THREAT OF TRUE PRICE COMPETITION IF FEDERAL AUTHORITIES ALLOW THE CREATION OF A NATIONWIDE POWER GRID SOUGHT BY BIG INDUSTRIAL USERS UNDER SUCH A SYSTEM KNOWN AS RETAIL WHEELING CUSTOMERS COULD PURCHASE POWER FROM ANYONE ON THE GRID USERS EXPECT SUCH A SYSTEM TO LOWER RATES AND SOME UTILITIES WITH LOW COSTS FAVOR THE APPROACH BECAUSE THEY SEE A COMPETITIVE ADVANTAGE BUT THE INDUSTRY GENERALLY IS FIGHTING HARD TO KEEP RETAIL WHEELING FROM BECOMING REALITY ANYTIME SOON THEY GAINED SUPPORT FROM THE NATIONAL ENERGY POWER ACT OF 1992 WHICH PROHIBITS INTERSTATE RETAIL WHEELING SOME UTILITY LAWYERS BELIEVE STATES DON'T HAVE THE RIGHT TO DECLARE RETAIL WHEELING WITHIN THEIR OWN BORDERS MOREOVER MEASURING AND PRICING USAGE UNDER SUCH A SYSTEM REMAINS A MURKY SCIENCE CRITICS SAY STILL SOME FORM OF RETAIL WHEELING IS BEING CONSIDERED IN NEW MEXICO AND MICHIGAN SOME UTILITIES ARE WOOING CUSTOMERS WITH LONGTERM CONTRACTS HOPING TO LOCK IN BIG CUSTOMERS SHOULD RETAIL WHEELING BE ADOPTED THE UTILITIES ARE TRYING TO BUY TIME SAYS MR ABRAMSON THREATS OF RETAIL WHEELING HAVE SENT THE RATEMAKING PROCESS INTO A TIZZY WITH UTILITIES SEEKING THE RIGHT TO BARGAIN WITH CUSTOMERS BUT WITH REVENUE FROM LARGE USERS DROPPING RESIDENTIAL CUSTOMERS CAN EXPECT EVENTUALLY TO GET SQUEEZED OUR CONCERN IS THAT RESIDENTIAL CUSTOMERS DON'T HAVE THE SAME OPPORTUNITIES TO BARGAIN AS LARGE USERS AND AS THOSE LARGE USERS GET BETTER DEALS OR FLEE RESIDENTIAL RATES LIKELY WILL BE NEGATIVELY IMPACTED SAYS ROBERT CEISLER EXECUTIVE DIRECTOR OF THE NEW YORK CITIZENS UTILITIES BOARD IN THE BAYWAY CASE NEW JERSEY REGULATORS FORCED PSE&G A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INC NEWARK AND ITS SHAREHOLDERS TO ABSORB THE DISCOUNT ENTIRELY HOWEVER NEW YORK REGULATORS HAVE ALLOWED SOME UTILITIES TO PASS ON TO OTHER CUSTOMERS INCLUDING RESIDENTIAL USERS 80 OF THE COST OF ANY DISCOUNT THEY OFFER DESPITE THE GLOOM VENTURE ASSOCIATES A UNIT OF CONSULTANTS ARTHUR ANDERSEN SAYS DEREGULATION SHOULD LEAD TO DYNAMIC GROWTH IN THE INDUSTRY CITING SIMILARITIES WITH DEREGULATION OF RAILROADS AIR TRANSPORT TELECOMMUNICATIONS AND NATURAL GAS THE FINANCIAL COMMUNITY IS MISJUDGING THE OPPORTUNITIES THAT DEREGULATION PROVIDES SAYS TIMOTHY P GARDNER A COAUTHOR OF THE STUDY THE DELIVERY OF ELECTRICITY IS INCREDIBLY COMPLEX AND THE UTILITIES WILL HAVE THE OPPORTUNITY TO TAKE ADVANTAGE OF THEIR EXPERTISE AS THE MARKET BECOMES MORE COMPETITIVE SOME UTILITIES WITH BOTH GAS AND ELECTRIC OPERATIONS AGREE AT UTILICORP UNITED KANSAS CITY MO SALES HAVE GROWN FROM 2334 MILLION IN 1990 TO MORE THAN 426 MILLION IN 1992 WE LEARNED QUITE A BIT ON OUR NATURALGAS SIDE SAYS RICHARD GREEN CHAIRMAN AND PRESIDENT AT UTILICORP I BELIEVE THE SAME THINGS WILL AND ARE HAPPENING ON THE ELECTRIC SIDE WE CAN'T JUST DEPEND ON THE SINGLE PRODUCT ANYMORE 9402100055 940210 CREDIT RATINGS TAUBMAN INVESTMENT CO ALEXANDRIA VA MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED THE RATING ASSIGNED TO THE OUTSTANDING 835 MILLION SUBORDINATED NOTE ISSUE DUE 1995 AT THIS COMPANY'S DEPARTMENTSTORE CHAIN UNIT WOODWARD & LOTHROP INC THE RATING AGENCY LOWERED ITS RATING FROM SINGLECAA TO SINGLEC MOODY'S SAID THE DOWNGRADE REFLECTS THE UNIT'S RECENT DECISION TO SEEK CHAPTER 11 PROTECTION 9402100054 940210 BUSINESS BRIEF TRACINDA CORP DAMAGE CLAIMS DISMISSED IN LAWSUIT FILED BY MGM A STATECOURT JUDGE IN LOS ANGELES DISMISSED ALL CLAIMS FOR DAMAGES SOUGHT IN A LAWSUIT BY METROGOLDWYNMAYER INC AGAINST KIRK KERKORIAN THE STUDIO'S FORMER OWNER MGM'S CLAIMS AGAINST A LOS ANGELES ACCOUNTING FIRM REMAIN INTACT THE 1992 SUIT HAD CHARGED THAT MR KERKORIAN HIS LOS ANGELESBASED TRACINDA CORP AND TWO ASSOCIATES FAILED TO DISCLOSE ADEQUATELY THE STUDIO'S FINANCIAL PROBLEMS WHEN THEY SOLD IT IN 1990 A SEPARATE SUIT FILED BY MGM'S OWNER FRENCH BANK CREDIT LYONNAIS SA WASN'T AFFECTED BY THE JUDGE'S RULING MR KERKORIAN HAS FILED A CROSSCOMPLAINT AGAINST CREDIT LYONNAIS AND MGM ALLEGING BREACH OF CONTRACT AND FRAUD THESE CLAIMS ARE ALSO UNAFFECTED BY THE COURT'S DISMISSAL OF MGM'S DAMAGE CLAIMS TRACINDA MR KERKORIAN'S PRIVATE INVESTMENT VEHICLE IS BASED IN BEVERLY HILLS CALIF 9402100053 940210 WEDNESDAY'S MARKETS STOCKS GAIN AS NOTE SALE GOES WELL DOW ADVANCES 2589 BOND PRICES INCREASE THE DOLLAR DECLINES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS ADVANCED AS BOND PRICES CLIMBED AMID A SMOOTH GOVERNMENT NOTE AUCTION THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE ROSE 2589 POINTS TO 393192 STANDARD & POOR'S 500STOCK INDEX CLIMBED 172 TO 47277 AND THE NASDAQ COMPOSITE INDEX SURGED 383 TO 78653 EVEN THE DOW JONES UTILITY AVERAGE JOINED THE RALLY ADDING 093 TO 21896 OVERALL IT WAS A VERY GOOD DAY SAID LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME HE SAID THERE WERE SOME CONCERNS IN THE MORNING THAT US STOCKS WOULD FARE POORLY CONSIDERING THE DECLINES IN OVERSEAS MARKETS BUT THOSE FEARS WERE OVERBLOWN MR BIRINYI SAID STRONG EARNINGS FROM SUCH COMPANIES AS GOODYEAR TIRE & RUBBER TOGETHER WITH A STABLE BOND MARKET HELPED TO MITIGATE THE WORRIES ABOUT WEAKNESS ABROAD THOUGH STOCKS STARTED THE DAY HIGHER THE RALLY ONLY TOOK OFF IN THE AFTERNOON WHEN IT BECAME CLEAR THAT THE TREASURY'S 12 BILLION AUCTION OF 10YEAR NOTES HAD GONE OFF WITHOUT A HITCH ON TUESDAY LACKLUSTER DEMAND FOR THE GOVERNMENT'S THREEYEAR NOTE AUCTION HAD SENT THE YIELD ON THE TREASURY'S 30YEAR BOND TO THE HIGHEST LEVEL SINCE AUGUST AND PUT PRESSURE ON STOCKS BUT A DROP IN OIL PRICES YESTERDAY PAVED THE WAY FOR HEALTHY DEMAND AT THE GOVERNMENT'S NOTE SALE WAYNE NORDBERG A PARTNER AT LORD ABBETT WHICH MANAGES ABOUT 6 BILLION IN STOCK ASSETS SAID INVESTORS WERE FLOCKING TO AREAS OF THE MARKET THAT HAVE AN ECONOMIC TAIL WIND WHILE AVOIDING THOSE SECTORS THAT HAVE AN INTEREST RATE HEAD WIND THUS ECONOMICALLY SENSITIVE STOCKS SUCH AS ALLIEDSIGNAL ALUMINUM CO OF AMERICA AND GENERAL ELECTRIC CONTINUED TO OUTPERFORM FINANCIAL STOCKS YESTERDAY AND HELPED TO POWER THE INDUSTRIAL AVERAGE TO A DOUBLEDIGIT GAIN HE SAID INVESTORS ARE RECOGNIZING THAT THOSE COMPANIES THAT HAVE AN ECONOMIC TAIL WIND ARE GOING TO BE ABLE TO REPORT SUFFICIENT EARNINGS GROWTH TO OVERCOME THIS MODEST BACKUP IN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 023 TO 11596 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME WAS 3226 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1289 ISSUES ROSE AND 850 FELL BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 640 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17585 MARKS AND 10835 YEN COMPARED WITH 17640 MARKS AND 10875 YEN TUESDAY 9402100052 940210 MUTUAL FUNDS OUTFLOW AT STOCK FUNDS MAY BE OMEN FOR MARKET BY ROBERT MCGOUGH AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL IF THE STOCK MARKET IS ADDICTED TO MUTUALFUND MONEY AS MANY PROS SAY THEN A SURVEY THIS WEEK HAS BAD NEWS AFTER FRIDAY'S 96POINT PLUNGE IN THE DOW JONES INDUSTRIAL AVERAGE INVESTORS QUIT SUPPLYING THOSE CRUCIAL DOLLARS TO STOCK FUNDS A SAMPLING OF 138 DOMESTICSTOCK FUNDS WITH 146 BILLION IN ASSETS SHOWS THAT THE CASH FLOWS INTO THESE FUNDS DRIED UP FOR THE FOUR BUSINESS DAYS THROUGH TUESDAY IN THAT FOURDAY PERIOD THE FUNDS ACTUALLY SUFFERED A SMALL OUTFLOW OF 25 MILLION ACCORDING TO AMG DATA SERVICES THE ARCATA CALIF RESEARCH FIRM THAT PERFORMED THE STUDY BY CONTRAST FOR THE FULL WEEK ENDED FEB 2 THE SAME FUNDS SUCKED IN NEARLY 387 MILLION ROBERT ADLER PRESIDENT OF AMG WARNS THAT THE DATA COME FROM ONLY A SAMPLING OF FUNDS AND SO MAY NOT CAPTURE THE FULL CASHFLOW PICTURE NEVERTHELESS MR ADLER SAYS GIVEN THE MARKET'S RELIANCE ON MUTUALFUND FLOWS THIS DOESN'T BODE WELL FOR THE MARKET TO BE SURE INVESTORS COULD COME FLOCKING BACK INTO STOCK FUNDS IN THE DAYS AHEAD AND IT'S CLEAR THAT FUND SHAREHOLDERS DIDN'T PANIC AND DUMP STOCK FUNDS EN MASSE FOLLOWING FRIDAY'S SLUMP FEARS ABOUT SMALL INVESTORS RUSHING TO CASH OUT THEIR MUTUALFUND HOLDINGS IN A MARKET DOWNTURN HAVE HAUNTED MANY MARKET PROGNOSTICATORS LATELY SUCH A MOVE WOULD WORSEN A STOCKMARKET DECLINE SINCE FUNDS WOULD THEN BE FORCED TO SELL MORE AND MORE STOCKS TO PAY OFF DEPARTING SHAREHOLDERS HOWEVER FUND INVESTORS HAVE LEARNED SINCE 1987 THAT IT'S THE RIGHT THING TO BUY ON EVERY DIP SAYS BYRON WIEN US INVESTMENT STRATEGIST AT MORGAN STANLEY & CO IN NEW YORK FOR PEOPLE TO PANIC OUT OF MUTUAL FUNDS WOULD TAKE A FAIRLY PROLONGED DECLINE IN PRICES MR WIEN SAYS AND WE'RE A LONG WAY FROM THAT EVEN SO A MARKET ACCUSTOMED TO BEING INJECTED WITH MORE THAN 10 BILLION A MONTH FROM STOCK FUNDS AS HAPPENED ON AVERAGE LAST YEAR COULD SUFFER WITHDRAWAL SYMPTOMS LONG BEFORE INVESTORS START REDEEMING EVEN A DECLINE IN CASH FLOWING TO FUNDS MIGHT MAKE THE MARKET LOOK SICKLY FOR ONE THING INVESTORS PUT OFF BY LOW RETURNS ON BONDS AND MONEYMARKET FUNDS MAY BE DRAWN TO OTHER INVESTMENTS THAN USSTOCK FUNDS ACCORDING TO AMG MORE THAN HALF OF THE MONEY GOING INTO STOCK FUNDS THIS YEAR HAS GONE INTO THOSE THAT INVEST OVERSEAS MOREOVER IN ANOTHER BAD SIGN FOR US STOCKS THERE SEEMS TO BE NO DECLINE IN THE VOLUME OF INITIAL PUBLIC OFFERINGS HITTING THE MARKET LAST YEAR IPOS SOAKED UP MUCH OF THE CASH MUTUAL FUNDS HAD TO INVEST IF EQUITY OFFERINGS STAYED HIGH AND IF CASH FLOWS INTO STOCK FUNDS DIMINISHED THAT WOULD BE A NEGATIVE FOR THE STOCK MARKET SAYS HERSH COHEN COMANAGER OF SMITH BARNEY SHEARSON APPRECIATION FUND MARKET PROFESSIONALS WHO TRACK IPOS SAY THE NUMBER OF SCHEDULED OFFERINGS IN THE PIPELINE ISN'T SHOWING SIGNS OF DWINDLING THE ACTIVITY IN THE MARKET RIGHT NOW IS UNCONNECTED WITH WHAT THE FED HAS DONE IN TIGHTENING SHORTTERM RATES SAYS LINDA KILLIAN A PRINCIPAL WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN THE IPO FILING ACTIVITY CONTINUES TO BE VERY STRONG WITH PENDING DEALS SCHEDULED FOR PRICING OVER THE NEXT EIGHT WEEKS UP MORE THAN 25 FROM A YEAR AGO ROBERT NATALE NEWISSUES ANALYST FOR STANDARD & POOR'S CORP IN NEW YORK SAYS THE CONTINUING VIGOR OF THE IPO MARKET IS A BAD SIGN FOR STOCKS OVERALL AS IPOS WILL KEEP SOAKING UP FRESH MONEY FLOWS IN THE MONTHS AHEAD I THINK THIS IS GOING TO BE A DETERRENT TO THE BULL MARKET HE SAYS THE NEWISSUES MARKET IS GOING TO BE PICKING UP BETWEEN NOW AND MARCH WHICH COULD CAUSE MORE LIMITED PROGRESS IN OVERALL STOCK PRICES HE EXPLAINS THE VOLUME OF FILINGS TENDS TO ACCELERATE INTO MARCH WHEN THE NUMBER OF ACTUAL OFFERINGS OFTEN PEAKS FOR THE FIRST HALF OF THE YEAR THAT IS BECAUSE AFTER ACCUMULATING YEAREND FINANCIAL DATA BY LATE FEBRUARY COMPANIES TEND TO RUSH TO FILE PUBLIC OFFERINGS THE AMG SURVEY OF FUNDS' CASH FLOWS FOCUSED ON ACTIVITY AT LEADING GROWTH FUNDS THE NAME GROWTH FUND IS SOMEWHAT DECEPTIVE BECAUSE IT INCLUDES A VARIETY OF INVESTMENT STYLES INCLUDING BOTH GROWTH STOCK FUNDS THAT INVEST IN FASTGROWING COMPANIES AND ALSO VALUE FUNDS THAT LOOK FOR CHEAP STOCKS AMONG THE FUNDS SAMPLED FIDELITY MAGELLAN THE LARGEST US MUTUAL FUND HAD AN OUTFLOW OF 85 MILLION IN THE FOUR BUSINESS DAYS THROUGH TUESDAY THE LARGEST OUTFLOW FROM ANY FUND IN THE SURVEY ACCORDING TO AMG BUT SINCE THE FIDELITY INVESTMENTS FUND IS SO HUGE THE OUTFLOW ACTUALLY AMOUNTED TO ONLY A QUARTER OF ONE PERCENTAGE POINT OF ITS ASSETS BY CONTRAST BRANDYWINE FUND HAD AN INFLOW OF 44 MILLION THE MOST POSITIVE RESULT OF ANY FUND IN THE SURVEY MEANWHILE ROBERTSON STEPHENS CONTRARIAN A FUND DESIGNED TO BENEFIT FROM MARKET DECLINES HAD INFLOWS OF 19 MILLION THE THIRDHIGHEST IN THE SURVEY SO LONG SECTOR FUNDS IN AN UNUSUAL DISPLAY OF CANDOR VANGUARD GROUP HAS ASKED FUND SHAREHOLDERS TO KILL OFF TWO POORLY PERFORMING SECTOR FUNDS OR FUNDS THAT GENERALLY INVEST IN A SINGLE INDUSTRY SHAREHOLDERS OF THE TWO VANGUARD SPECIALIZED PORTFOLIOS FOR THE SERVICEECONOMY AND TECHNOLOGY SECTORS WILL VOTE IN MAY ON A PROPOSAL TO MERGE THE FUNDS INTO TWO LARGER VANGUARD FUNDS JOHN C BOGLE VANGUARD'S CHAIRMAN SAID IN A STATEMENT THAT THE FUNDS HAD BECOME A TRADING VEHICLE FOR SOME INVESTORS BUT HAD FAILED TO ATTRACT LONGTERM INVESTORS THE STATEMENT SAID THE DECISION TO KILL OFF THE FUNDS WAS MADE AFTER CAREFUL CONSIDERATION OF THE PORTFOLIOS' LONGTERM PERFORMANCE RECORDS WHICH HAD NOT MEASURED UP TO COMPETITIVE NORMS SECTOR FUNDS HAVE MULTIPLIED IN NUMBER DURING THE PAST DECADE WITH TOP PERFORMERS ATTRACTING HUNDREDS OF MILLIONS OF DOLLARS IN ASSETS THE TECHNOLOGY FUND HAS ONLY 84 MILLION IN ASSETS AND ITS TOTAL RETURN OF 1424 FOR THE PAST FIVE YEARS LAGGED BEHIND THE RETURNS OF 80 OF RIVAL SECTOR FUNDS ACCORDING TO LIPPER ANALYTICAL SERVICES INC VANGUARD WANTS TO MERGE ITS TECHNOLOGY FUND INTO EXPLORER ONE OF ITS SMALLSTOCK FUNDS THE SERVICE ECONOMY FUND MEANWHILE IS TO BE MERGED INTO VANGUARD'S MORGAN GROWTH FUND MORGAN GROWTH HAS A BETTER RECORD THAN SERVICE ECONOMY FOR THE PAST NINE YEARS BUT NOT FOR THE PAST FIVE HOWEVER SINCE SERVICE ECONOMY HAS GLEANED ONLY 34 MILLION IN ASSETS AFTER MORE THAN NINE YEARS WE ARE WILLING TO ADMIT THAT THE CONCEPT FOR THE PORTFOLIO MAY HAVE BEEN ILLCONCEIVED MR BOGLE SAID IN THE STATEMENT THE TWO DISAPPEARING FUNDS WERE MANAGED UNDER CONTRACT FOR VANGUARD BY WELLINGTON MANAGEMENT CO A BOSTON MANAGER OF A NUMBER OF VANGUARD FUNDS 9402100051 940210 BUSINESS BRIEF REYNOLDS METALS CO ACCORD REACHED TO SELL UNIT IN AUSTRALIA TO POSEIDON GOLD REYNOLDS METALS CO RICHMOND VA SAID IT REACHED AN AGREEMENT TO SELL REYNOLDS AUSTRALIA METALS LTD FOR 116 MILLION PLUS THE DELIVERY OF 30000 OUNCES OF GOLD OVER SEVEN YEARS REYNOLDS AUSTRALIA WHICH HOLDS A 40 STAKE IN THE BODDINGTON GOLD MINE IN WESTERN AUSTRALIA WILL BE SOLD TO POSEIDON GOLD LTD OF ADELAIDE AUSTRALIA A UNIT OF NORMANDY POSEIDON LTD THE TRANSACTION IS EXPECTED TO CLOSE MARCH 15 REYNOLDS METALS PLANS TO USE THE SALE'S PROCEEDS TO FUND PART OF ITS 1994 CAPITALEXPENDITURE PLAN EXPAND BUSINESSES AND STRENGTHEN ITS FINANCIAL POSITION 9402100050 940210 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BELGIUM CITING A SLIDE IN BUSINESS CONFIDENCE IN THE COUNTRY WILL OFFER NEW TAX BREAKS TO MULTINATIONAL COMPANIES TO STEM DECLINES IN FOREIGN INVESTMENT THE ECONOMICS MINISTRY ALSO WILL SEEK TO PROTECT FOREIGN COMPANIES' COORDINATION CENTERS IN BELGIUM FROM CHANGES IN THEIR TAX STATUS US FIRMS HAVE SET UP 100 OF THE CENTERS WHICH ATTRACT CAPITAL IN A POLL BY THE AMERICAN CHAMBER OF COMMERCE IN BELGIUM 86 OF ITS 1000 MEMBERS WORRIED ABOUT UNSTABLE GOVERNMENT POLICIES ON TAXES AND LABOR SOME FIRMS PERCEIVED TAXATION AS IN PERPETUAL UPHEAVAL BELGIUM GETS ONLY 4 OF US DIRECT INVESTMENT IN EUROPE AND IN RECENT YEARS HAD A NET LOSS OF US OPERATION SO THE GOVERNMENT WILL LET FOREIGN COMPANIES CONDUCT A WIDER RANGE OF LOWTAXED ACTIVITIES TAX BREAKS NOW OFFERED TO DISTRIBUTION CENTERS ONLY FOR HANDLING RAW MATERIALS AND PROCUREMENT WILL BE EXPANDED TO COVER PRODUCTS AND SERVICES FRANCE TIGHTENED CONTROLS ON FISH IMPORTS TO PLACATE STRIKING FISHERMEN WHO SAY THEY ARE BEING UNDERCUT BY FOREIGN RIVALS' CHEAPER PRICES THE FISHERMEN WANT PRICE MINIMUMS AND RESTRICTIONS ON IMPORTS FROM COUNTRIES THAT AREN'T EUROPEAN UNION MEMBERS FRANCE INTENSIFIED CUSTOMS INSPECTIONS OF FISH IMPORTS PROMPTING A US EMBASSY PROTEST THAT THIS CAUSED TONS OF AMERICAN SHIPMENTS TO ROT FRANCE ALSO WILL GRANT IMPORT LICENSES ONLY TO COMPANIES BASED IN COUNTRIES THAT APPLY PRODUCTION AND MARKETING RULES THAT MEET OR EXCEED EU STANDARDS THE GERMAN CABINET APPROVED A PROPOSAL TO TAX SOME FOREIGN TRACTORTRAILER TRUCKS THAT USE THE AUTOBAHNS JUST AS GERMAN HAULERS MUST PAY TO RUN ON EUROPEAN EXPRESSWAYS THE LEGISLATION TO GO TO PARLIAMENT WOULD TAKE EFFECT NEXT JAN 1 THE BILL WOULD CUT THE MOTORVEHICLE TAX ON GERMAN OPERATORS AND ASSESS BETWEEN 850 AND 1415 A YEAR FOR AN AUTOBAHN STICKER FOR TRUCKS TRANSPORTING GOODS OUT OF AND INTO GERMANY VIA BELGIUM THE NETHERLANDS LUXEMBOURG AND DENMARK AS INTERNATIONAL CREDITCARD COMPANIES CAMPAIGN IN CHINA TO EXPAND IN THE HUGE AND LARGELY UNTAPPED MARKET FRAUD HAS BECOME A SERIOUS PROBLEM IN MAJOR CITIES THE COMPANIES BLAMED POOR COMMUNICATIONS AND WEAK REGULATION FOR THE INCREASES IN REPORTED FRAUD THEY SAID MAJOR OFFENDERS ARE MERCHANTS WHO FORGE PAYMENT SLIPS OR OVERCHARGE CREDIT CARDS WERE INTRODUCED TO CHINA ONLY IN THE EARLY 1980S CREDITCARD TRANSACTIONS ARE DOMINATED BY FOREIGN VISITORS THE RUSSIAN GOVERNMENT MUST TAKE A MORE ACTIVE ROLE IN REGULATING THE ECONOMY SUCH AS SETTING UTILITY AND TRANSPORT PRICES ECONOMICS MINISTER ALEXANDER SHOKHIN SAID AFTER MEETING WITH ECONOMISTS WHO HAVE PROPOSED A FUNDAMENTAL SHIFT IN MARKET REFORMS MR SHOKHIN SAID HE AGREED WITH THEM ON SEVERAL ISSUES REFORMERS IN AND OUT OF THE GOVERNMENT HAVE FAULTED THE ECONOMISTS' REPORT SAYING IT OFFERS SOVIETERA SOLUTIONS TO MARKET PROBLEMS THE REPORT CALLED FOR FIXING MANY PRICES AND SLOWING PRIVATIZATIONS AND BLAMED RISING PRODUCTION COSTS NOT MONETARY GROWTH FOR RAMPANT INFLATION THE EUROPEAN PARLIAMENT URGED INCLUSION OF LABOR LAWS IN THE LIBERALIZED WORLD TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE EUROPEAN UNION ASSEMBLY ALSO APPEALED FOR THE GLOBAL TRADE GROUP TO ENSURE PROTECTION OF WORKERS AND THEIR UNIONS IT APPROVED A RESOLUTION DEMANDING PROVISIONS BARRING CHILD AND FORCED LABOR BUT IT REJECTED A PROPOSAL TO BLOCK THE EU FROM SIGNING THE GATT DEAL UNLESS IT ALLOWS RESTRICTING IMPORTS FROM A COUNTRY THAT DOESN'T RESPECT INTERNATIONAL LABOR STANDARDS THE ACCORD CONTAINS A LOOSELY WORDED COMMITMENT TO SOCIAL PROTECTION A 16 HOLDING IN THE UNITED ELECTRIC POWER SYSTEM OF RUSSIA IS ON THE AUCTION BLOCK A MOVE TOWARD PRIVATIZING WHAT OFFICIALS SAID IS THE WORLD'S BIGGEST UTILITY FOUNDED IN 1920 THE SOVIET POWER GRID ONCE STRETCHED INTO EASTBLOC SATELLITE STATES AND WAS CONTROLLED FROM MOSCOW ALMOST ALL OF THE FORMER USSR IS STILL LINKED TO THE GRID BUT ONLY THE PART INSIDE RUSSIA IS TO BE TAKEN PRIVATE IN THE SELLOFF THROUGH MARCH 28 RUSSIANS MAY BUY THE 16 INTEREST FOR PRIVATIZATION VOUCHERS THE GOVERNMENT WILL HOLD 51 OF UNITED ELECTRIC UNTIL 1995 ITS WORKERS WILL GET 21 AND 12 IS TO BE OFFERED FOR SALE TO PRIVATE INVESTORS UNITED ELECTRIC A JOINT STOCK COMPANY SINCE 1992 VALUES ITS ASSETS AT 4015 BILLION INCLUDING 684 CONVENTIONAL POWER PLANTS AND 15 MILLION MILES OF CABLE CONNECTING 69 REGIONAL POWER SYSTEMS WHILE THE UTILITY'S SERVICE IS RELIABLE CONSUMERS INCLUDING STATEOWNED AND PRIVATE ENTERPRISES OWE 178 BILLION TO THE COMPANY WHICH OWES 223 MILLION TO NUCLEAR PLANTS THAT PROVIDE 12 OF RUSSIA'S ELECTRICITY BUT AREN'T PART OF UNITED ELECTRIC AFTER SOME VODKA WORKERS WERE IDLED BECAUSE OF DECLINING SALES RUSSIA'S CABINET AGREED TO CUT THE EXCISE TAX ON VODKA TO 80 FROM 90 TO HELP DISTILLERS COMPETE WITH CHEAPER FOREIGN BRANDS DOMESTIC PRICES COULD FALL 5 IN ROME 15000 GRAPE FARMERS BLOCKED TRACKS AT THE MAIN RAILWAY STATION AND HALTED AUTO TRAFFIC IN THE ITALIAN CAPITAL TO PROTEST MOVES TO REDUCE EUROPE'S WINE SURPLUS 9402100049 940210 FINANCING BUSINESS BETHLEHEM STEEL CORP BETHLEHEM STEEL CORP BETHLEHEM PA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 12 MILLION COMMON SHARES THE STEELMAKER SAID 102 MILLION SHARES WILL BE OFFERED IN THE US WHILE 18 MILLION WILL BE SOLD INTERNATIONALLY BETHLEHEM SAID IT PLANS TO CONTRIBUTE ALL OR SUBSTANTIALLY ALL OF THE OFFERING'S PROCEEDS TO THE COMPANY'S PENSION FUND ANY REMAINING PROCEEDS WILL BE USED FOR GENERAL PURPOSES INCLUDING CAPITAL EXPENDITURES FOR MODERNIZATION BETHLEHEM SAID SALOMON BROTHERS WILL BE LEAD MANAGER FOR THE OFFERING THE OVERALLOTMENT OPTION IS FOR 18 MILLION ADDITIONAL SHARES BETHLEHEM CURRENTLY HAS 915 MILLION COMMON SHARES OUTSTANDING IF ALL OF THE OFFERED SHARES ARE SOLD AND THE FULL OVERALLOTMENT OPTION IS EXERCISED THE COMPANY WILL THEN HAVE ABOUT 1053 MILLION COMMON SHARES OUTSTANDING 9402100048 940210 IRS MAKES OFFER TO SETTLE DISPUTES OVER INTANGIBLES BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE IS MAKING A ONETIMEONLY SETTLEMENT OFFER TO COMPANIES WITH SOME 145 BILLION IN TAX DISPUTES THE DISPUTES INVOLVE HOW THE COMPANIES ACCOUNT FOR INTANGIBLE CORPORATE ASSETS SUCH AS MAILING LISTS COMPUTER SOFTWARE AND OTHER ITEMS SOME COMPANIES DEPRECIATE THEM THAT IS DEDUCT THEIR VALUE FROM TAXABLE INCOME OVER A PERIOD OF YEARS AS THEY WOULD OTHER ASSETS SUCH AS MANUFACTURING PLANTS DETERMINING THE VALUE OF INTANGIBLE ASSETS AS WELL AS HOW THEY MAY BE DEPRECIATED HAS BEEN A MURKY ISSUE FOR YEARS BUT THE SUPREME COURT RULED AGAINST THE IRS LAST YEAR IN A CASE INVOLVING INTANGIBLES CLAIMED BY THE NEWARK MORNING LEDGER CO AND THE 1993 BUDGET LAW SPELLED OUT HOW COMPANIES MUST ACCOUNT FOR INTANGIBLE ASSETS THE LAW HOWEVER DIDN'T ADDRESS INTANGIBLE ASSETS CLAIMED BEFORE JULY 25 1991 THAT LEFT UNRESOLVED DISPUTES INVOLVING DEDUCTIONS CLAIMED BEFORE THAT DATE BY SOME 1500 COMPANIES THE MAJOR GOAL IS TO SETTLE A SIGNFICANT PART OF THE INVENTORY SAID JAMES J KEIGHTLEY SPECIAL COUNSEL TO THE IRS UNDER THE SETTLEMENT THE IRS WOULD PLUG EACH COMPANY'S DISPUTED AMOUNT OF INTANGIBLE ASSETS INTO TWO FORMULAS AND LET THE COMPANY DEDUCT WHICHEVER RESULTING AMOUNT IS GREATER IN GENERAL THE IRS SAID THE MORE AGGRESSIVE THE POSITION THE COMPANY TOOK ON THE TAX RETURN THE MORE IT WOULD HAVE TO GIVE BACK UNDER THE SETTLEMENT THE SETTLEMENT OFFER IS LESS GENEROUS THAN THE TREATMENT PERMITTED UNDER THE 1993 BUDGET LAW BUT THE IRS SAID CONGRESS MADE CLEAR THAT COMPANIES NOT COVERED BY THE LAW WEREN'T TO GET SUCH FAVORABLE TREATMENT MR KEIGHTLEY SAID HE SAID BOTH THE IRS AND THE COMPANIES WOULD ELIMINATE UNCERTAINTIES AND SAVE ON LITIGATION COSTS BY SETTLING WE THINK WE HAVE PICKED A NUMBER THAT MAKES SENSE FROM A SETTLEMENT PERSPECTIVE HE SAID ON APRIL 1 THE IRS WILL NOTIFY THE COMPANIES THAT THEY HAVE 90 DAYS TO COMPUTE HOW THE SETTLEMENT OFFER WOULD AFFECT THEIR TAXES AND STATE THEIR WILLINGNESS TO ACCEPT OR REJECT THE SETTLEMENT A SINGLE COMPANY WITH MULTIPLE DISPUTES OVER INTANGIBLES MUST SETTLE OR REJECT ALL OF THEM IT'S TAKE IT OR LEAVE IT SAID MR KEIGHTLEY IF COMPANIES REJECT THE SETTLEMENT THEY MAY PROCEED WITH THE CUSTOMARY IRS HEARINGS AND COURT APPEALS IF NECESSARY TO DETERMINE THE FATE OF THE DEDUCTIONS COMPANIES WERE JUST LEARNING OF THE SETTLEMENT PROPOSAL YESTERDAY AND MOST DECLINED TO COMMENT THE TAX DIRECTOR AT INTERNATIONAL MULTIFOODS A MINNEAPOLIS FOODSERVICE COMPANY THAT HAS BETWEEN 20 MILLION AND 30 MILLION IN DISPUTED TAXES SAID THE COMPANY COULDN'T COMMENT FOR A FEW DAYS UNTIL IT REVIEWED THE COMPLICATED SETTLEMENT FORMULA 9402100047 940210 MARKETING BRIEF NOTED CABLETV AMERICA'S TALKING AN ALLTALK CABLE NETWORK FROM GENERAL ELECTRIC CO'S NBC WILL MAKE ITS DEBUT JULY 4 THE COMPANY DECLINED TO SAY HOW MANY HOUSEHOLDS WILL HAVE ACCESS TO THE CHANNEL WHICH WILL PRODUCE 14 HOURS OF LIVE TALK SHOWS DAILY WHO'S NEWS THE VILLAGE VOICE SAID EDITOR IN CHIEF JONATHAN LARSEN RESIGNED BUT WILL STAY AT THE ALTERNATIVE WEEKLY NEWSPAPER UNTIL A SUCCESSOR IS NAMED MR LARSEN 54 SAID HE NEEDED A BREAK AFTER A STRESSFUL PERIOD THE VOICE IS CLOSELY HELD BY BUSINESSMAN LEONARD STERN 9402100046 940210 GOP WINS AN EXTENSION FOR ACTIONS AGAINST S&LS WASHINGTON AP THE SENATE VOTED 950 TO EXTEND THE DEADLINE FOR CIVIL FRAUD ACTIONS AGAINST FAILED SAVINGS AND LOANS A VICTORY FOR REPUBLICANS DEMANDING A MORE EXTENSIVE PROBE OF THE WHITEWATER CASE SEN ALFONSE D'AMATO R NY HAD BEEN DEMANDING AN EXTENSION OF THE STATUTE OF LIMITATIONS THAT WAS SET TO EXPIRE FEB 28 IN THE CASE OF MADISON GUARANTY SAVINGS & LOAN MADISON IS THE FAILED ARKANSAS INSTITUTION CENTRAL TO THE WHITEWATER CASE WITHOUT THE EXTENSION HE SAID THE SAVINGSANDLOAN CLEANUP AGENCY WOULD BE UNABLE TO PURSUE CIVIL FRAUD AND NEGLIGENCE CLAIMS AGAINST MADISON IN A COMPROMISE REACHED YESTERDAY BETWEEN SEN D'AMATO AND SEN HOWARD METZENBAUM D OHIO THE LANGUAGE WOULD ALLOW THE RESOLUTION TRUST CORP TO PURSUE CIVIL ACTIONS AGAINST NUMEROUS FAILED S&LS UNTIL DEC 31 1995 THE PROVISION IS PART OF A SUPPLEMENTAL SPENDING BILL TO PROVIDE 86 BILLION FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE A SPECIAL COUNSEL AS PART OF A CRIMINAL PROBE IS INVESTIGATING TIES BETWEEN THE FAILED MADISON GUARANTY AND WHITEWATER DEVELOPMENT CORP AN ARKANSAS REAL ESTATE DEVELOPMENT COMPANY THAT WAS OWNED BY BILL AND HILLARY RODHAM CLINTON ALONG WITH MADISON'S OWNER AND HIS WIFE AT THE TIME 9402100045 940210 BUSINESS BRIEF GP FINANCIAL CORP PROFORMA PROFIT ROSE 18 IN FISCAL SECOND QUARTER NEWLY PUBLIC GP FINANCIAL CORP PARENT OF GREEN POINT SAVINGS BANK SAID PROFORMA PROFIT IN THE FISCAL SECOND QUARTER ROSE 18 BOOSTED BY HIGHER NETINTEREST INCOME AND A DROP IN PROVISIONS FOR LOAN LOSSES AND INCOME TAXES GP FINANCIAL WHICH HAD ITS INITIAL PUBLIC OFFERING JAN 28 REPORTED PROFORMA NET INCOME FOR THE SECOND QUARTER ENDED DEC 31 OF 281 MILLION OR 51 CENTS A SHARE COMPARED WITH 239 MILLION OR 44 CENTS A SHARE A YEAR EARLIER PROVISIONS FOR LOAN LOSSES FELL 5 TO 122 MILLION FROM 129 MILLION FOR THE FIRST SIX MONTHS GP FINANCIAL HAD NET INCOME OF 562 MILLION OR 102 A SHARE COMPARED WITH NET INCOME OF 443 MILLION OR 81 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER PERIOD INCLUDED A 53 MILLION CHARGE FOR ACCOUNTING CHANGES THE COMPANY SAID HIGHER NETINTEREST INCOME AND A DROP IN INCOME TAXES FOR THE PERIOD WERE PARTIALLY OFFSET BY INCREASES IN NETINTEREST EXPENSE AND PROVISIONS FOR LOAN LOSSES LOANLOSS PROVISIONS FOR THE SIX MONTHS ROSE 16 TO 253 MILLION FROM 218 MILLION EFFECTIVE JAN 1 GP FINANCIAL NEW YORK SAID IT'S CHANGING ITS FISCAL YEAR TO A CALENDAR YEAR 9402100044 940210 BUSINESS BRIEF AMSCO INTERNATIONAL INC FOURTHQUARTER PROFIT FELL ON LOWER GROSS MARGINS AMSCO INTERNATIONAL INC REPORTED SHARPLY LOWER FOURTHQUARTER EARNINGS PARTLY BECAUSE OF LOWER GROSS MARGINS AND A DROP IN CUSTOMER ORDERS FOR CAPITAL EQUIPMENT THE PITTSBURGH COMPANY A SUPPLIER OF INFECTION CONTROL DECONTAMINATION AND SURGICAL PRODUCTS AND SERVICES SAID PROFIT PLUNGED 60 TO 62 MILLION OR 20 CENTS A SHARE FROM 153 MILLION OR 47 CENTS A SHARE A YEAR AGO THE PERIOD INCLUDED A LOSS OF 49 MILLION OR 16 CENTS A SHARE FROM THE COMPANY'S INVESTMENT IN THE AMSCO STERILE RECOVERIES INC UNIT COMPARED WITH A LOSS OF 26 MILLION OR SEVEN CENTS A SHARE FOR THE SAME INVESTMENT IN THE 1992 QUARTER SALES DROPPED 10 TO 1468 MILLION FROM 1639 MILLION CUSTOMER ORDERS FOR CAPITAL EQUIPMENT FELL 24 TO 773 MILLION AMSCO SAID IT WILL ELIMINATE ABOUT 100 JOBS WORLDWIDE AS A RESULT OF REORGANIZING ITS OPERATIONS AROUND TWO GLOBAL GROUPS ONE FOR MARKETING PRODUCT DEVELOPMENT AND MANUFACTURING AND THE OTHER FOR PRODUCT SALES AND SERVICE ACTIVITIES 9402100043 940210 DIVIDEND NEWS LA QUINTA INNS INC LA QUINTA INNS INC SAN ANTONIO TEXAS SAID ITS BOARD AUTHORIZED A 3FOR2 COMMONSTOCK SPLIT THE MOTEL CONCERN SAID EACH SHAREHOLDER WILL RECEIVE ONE ADDITIONAL SHARE ON OR ABOUT MARCH 15 FOR EACH TWO SHARES HELD FEB 21 A CASH PAYMENT WILL BE MADE IN LIEU OF FRACTIONAL SHARES BASED ON THE CLOSING PRICE OF COMMON SHARES ON FEB 21 ADJUSTED TO REFLECT THE 3FOR2 SPLIT THE COMPANY ALSO SAID IT INCREASED THE CASH DIVIDEND BY 50 IN CONJUNCTION WITH THE SPLIT RESULTING IN A PAYOUT AT THE ANNUAL RATE OF 10 CENTS A SHARE ON POSTSPLIT COMMON SHARES AFTER THE SPLIT LA QUINTA INNS WILL HAVE ABOUT 304 MILLION SHARES OUTSTANDING 9402100042 940210 DIVIDEND NEWS BLAIR CORP BLAIR CORP WARREN PA A DIRECTMAILORDER RETAILER OF MEN'S AND WOMEN'S APPAREL AND HOME FURNISHINGS DECLARED A QUARTERLY DIVIDEND OF 1 A SHARE PAYABLE MARCH 15 TO SHAREHOLDERS OF RECORD FEB 23 THE COMPANY HAD PAID A DIVIDEND OF 35 CENTS A SHARE IN THE FIRST THREE QUARTERS A BLAIR SPOKESMAN SAID THAT A YEAR AGO THE COMPANY HAD PAID DIVIDENDS OF 25 CENTS A SHARE FOR EACH OF THE FIRST THREE QUARTERS AND A 155 A SHARE DIVIDEND IN THE FOURTH QUARTER THE LOWER FOURTHQUARTER DIVIDEND IN THE LATEST PERIOD REFLECTS LOWER EARNINGS REPORTED BY THE COMPANY HE ADDED 9402100041 940210 BUSINESS BRIEF CHARLES SCHWAB & CO FIRM SAYS TRADING ACTIVITY FOR JANUARY ROSE TO RECORD CHARLES SCHWAB & CO REPORTED RECORD TRADING ACTIVITY FOR JANUARY AND SAID CLIENT EQUITY EXCEEDED 100 BILLION IN JANUARY THE SAN FRANCISCO DISCOUNT BROKERAGE FIRM EXECUTED AN AVERAGE 51700 TRADES A DAY COMPARED WITH 38600 TRADES A DAY IN DECEMBER AND 34600 TRADES A DAY IN JANUARY 1993 COMBINED NEW YORK STOCK EXCHANGE AND NASDAQ STOCK MARKET AVERAGE DAILY VOLUME INCREASED TO 634 MILLION SHARES IN JANUARY FROM 546 MILLION SHARES IN DECEMBER AND 525 MILLION SHARES IN JANUARY 1993 SCHWAB SAID ITS CLIENTS' EQUITY INCREASED FROM 958 BILLION IN DECEMBER TO 1008 BILLION IN JANUARY SCHWAB'S CLIENT EQUITY WAS 686 BILLION IN JANUARY 1993 9402100040 940210 RULING BANNING BROADCAST BY CBS IS OVERTURNED WASHINGTON SUPREME COURT JUSTICE HARRY BLACKMUN CLEARED THE WAY FOR CBS NEWS TO BROADCAST A REPORT THAT INCLUDES HIDDENCAMERA VIDEOTAPE MADE IN A SOUTH DAKOTA MEATPACKING PLANT THE REPORT DESCRIBING ALLEGATIONS OF UNSANITARY CONDITIONS AT THE FEDERAL BEEF PROCESSORS INC PLANT IN RAPID CITY SD WAS SCHEDULED TO BE SHOWN LAST NIGHT ON CBSTV'S 48 HOURS JUSTICE BLACKMUN IN RESPONSE TO AN EMERGENCY FILING BY CBS SET ASIDE A RULING BY A SOUTH DAKOTA STATE JUDGE WHO PROHIBITED THE NETWORK FROM USING THE HIDDENCAMERA MATERIAL THE STATE JUDGE BASED HIS UNUSUAL ORDER ON FEDERAL BEEF'S CONTENTION THAT THE VIDEO WOULD DISCLOSE COMPANY TRADE SECRETS HURT ITS REPUTATION AND DAMAGE THE LOCAL ECONOMY STRESSING FEDERAL BEEF'S DETERMINATION TO EXCLUDE OUTSIDERS FROM ITS FACILITY THE JUDGE SAID THERE IS NO FIRST AMENDMENT INTEREST PROTECTING THE NEWS MEDIA FROM CALCULATED MISDEEDS THE TAPE HAD BEEN MADE BY A FEDERAL BEEF EMPLOYEE WHO COOPERATED WITH CBS THE SOUTH DAKOTA SUPREME COURT ON TUESDAY DECLINED TO SET ASIDE THE JUDGE'S RULING PROMPTING CBS TO APPEAL TO THE JUSTICE BLACKMUN WHO HANDLES EMERGENCY MATTERS ARISING IN THE FEDERAL JURISDICTION THAT INCLUDES SOUTH DAKOTA JUSTICE BLACKMUN'S OPINION REITERATED THAT PREEMPTIVE BANS OF BROADCASTS OR PUBLICATIONS ARE PARTICULARLY DISFAVORED UNDER THE SUPREME COURT'S INTERPRETATION OF THE CONSTITUTIONAL PROTECTION OF THE PRESS AND FREE SPEECH 9402100039 940210 BUSINESS BRIEF PLAYTEX PRODUCTS INC PERSONALCARE ITEMS MAKER POSTS FOURTHQUARTER LOSS PLAYTEX PRODUCTS INC STAMFORD CONN POSTED A LARGE FISCAL FOURTHQUARTER LOSS MAINLY DUE TO THE EXTINGUISHMENT OF DEBT ASSOCIATED WITH ITS RECENTLY COMPLETED RECAPITALIZATION PLAN FOR THE THREE MONTHS ENDED DEC 25 THE MARKETER OF PERSONALCARE PRODUCTS POSTED A LOSS OF 441 MILLION COMPARED WITH A LOSS OF ABOUT 5 MILLION IN THE YEAREARLIER PERIOD THE COMPANY WHICH COMPLETED AN INITIAL PUBLIC OFFERING OF 20 MILLION SHARES AT THE END OF LAST MONTH AS PART OF ITS RECAPITALIZATION PLAN DIDN'T PROVIDE PERSHARE NUMBERS THE 1993 QUARTER INCLUDED A 394 MILLION CHARGE FOR DEBT EXTINGUISHMENT SALES FOR THE QUARTER WERE 948 MILLION UP ABOUT 3 FROM 92 MILLION THE COMPANY SAID IT WILL ENHANCE EARNINGS AS A RESULT OF CONTINUED GROWTH FROM COREPRODUCT CATEGORIES THE DISTRIBUTION OF BANANA BOAT SUNCARE PRODUCTS AND DELEVERAGING THROUGH INTERNALLY GENERATED CASH FLOW 9402100038 940210 BUSINESS BRIEF CINTAS CORP SNOWFALL QUAKE HURT PROFIT AND SALES IN CURRENT QUARTER CINTAS CORP SAID BAD WINTER WEATHER AND THE EARTHQUAKE IN LOS ANGELES THAT INTERRUPTED BUSINESS WOULD CAUSE A LOSS IN TOTAL SALES OF ABOUT 500000 IN THE FISCAL THIRD QUARTER THE CINCINNATIBASED UNIFORM COMPANY ADDED THERE WILL BE A ONETIME ADVERSE IMPACT ON NET INCOME OF ABOUT 500000 OR ONE CENT A SHARE FOR THE PERIOD ENDING FEB 28 IN THE YEAREARLIER PERIOD CINTAS POSTED NET INCOME OF 11 MILLION OR 24 CENTS A SHARE ON SALES OF 1128 MILLION THERE IS NO ONGOING NEGATIVE IMPACT TO THE COMPANY FROM THESE EVENTS CINTAS SAID THE MANUFACTURING FACILITIES HAVE FULLY RECOVERED AND BUSINESS IS BACK TO USUAL CINTAS SAID SNOW TEMPORARILY INTERRUPTED BUSINESS IN ITS MIDWESTERN AND NORTHEASTERN OPERATIONS AND CAUSED THE TEMPORARY CLOSING OF THREE MANUFACTURING PLANTS IN KENTUCKY AND FORCED THE COMPANY TO PROCURE GARMENTS FROM ALTERNATIVE SUPPLIERS AT A HIGHER COST 9402100037 940210 WHAT'S NEWS WORLD WIDE THE US SUSPENDED TRADE TALKS WITH JAPAN ON THE EVE OF A SUMMIT BETWEEN CLINTON AND HOSOKAWA TRADE REPRESENTATIVE KANTOR'S ACTION WAS CLEARLY MEANT TO SIGNAL US DISPLEASURE AT THE PACE OF THE TALKS AND TO PUT MAXIMUM PRESSURE ON TOKYO TO MAKE CONCESSIONS FOREIGN MINISTER HATA IS EXPECTED TO MEET WITH TOP US OFFICIALS TODAY AND KANTOR SAID HE STILL EXPECTED THE TWO SIDES TO REACH AN AGREEMENT IN THE FRAMEWORK TRADE TALKS TOMORROW US HEALTHCARE IS SEEKING PARTNERSHIPS WITH UP TO 200 HOSPITALS A MAJOR SWITCH IN STRATEGY FOR THE HMO WHICH HAS TRADITIONALLY AVOIDED DIRECT INVOLVEMENT IN HEALTHCARE DELIVERY IT PROPOSED GIVING STOCK OPTIONS TO HOSPITALS OR SETTING UP PROFITSHARING TRUSTS THAT WOULD BE JOINTLY OWNED THE CBO DIRECTOR TESTIFIED THAT CONSERVATIVE ALTERNATIVES TO CLINTON'S HEALTHCARE PLAN ARE LIKELY TO BE LESS EFFECTIVE IN CURBING HEALTH COSTS FORD REBOUNDED STRONGLY IN THE FOURTH QUARTER TO A PROFIT OF 719 MILLION FROM A YEARAGO LOSS BUT ITS STOCK SLID 1 TO 6850 BECAUSE INVESTORS WERE LOOKING FOR EVEN BETTER RESULTS A US APPEALS COURT UPHELD NEW YORK'S RIGHT TO ADOPT CALIFORNIA'S PLAN FOR CUTTING VEHICLE EMISSIONS INCLUDING A MANDATE FOR ELECTRIC CARS IN ANOTHER DEFEAT FOR THE AUTO INDUSTRY INVESTORS STOPPED THE FLOW OF MONEY INTO MUTUAL FUNDS AFTER FRIDAY'S 96POINT PLUNGE IN THE DOW JONES INDUSTRIAL AVERAGE A SURVEY OF 138 DOMESTICSTOCK FUNDS SHOWS IN THE FOUR BUSINESS DAYS THROUGH TUESDAY THE FUNDS HAD AN OUTFLOW OF 25 MILLION STOCKS ADVANCED AS BOND PRICES ROSE AMID SIGNS OF A SMOOTH GOVERNMENT NOTE AUCTION THE DOW JONES INDUSTRIALS INCREASED 2589 TO 393192 INTEL PLANS TO OFFER A 50 FASTER VERSION OF ITS PENTIUM MICROPROCESSOR AND UNVEIL A MIDRANGE MICROCHIP MEANWHILE MACHINES POWERED BY THE CURRENT PENTIUM CHIP ARE HITTING STORE SHELVES ABOUT A YEAR FASTER THAN NEW COMPUTER MODELS HAVE IN THE PAST SPECTRUM FILED A 300 MILLION LAWSUIT AGAINST JOHN SCULLEY CHARGING HIM WITH BREACH OF CONTRACT MISMANAGEMENT AND THEFT OF TRADE SECRETS ELECTRONIC ARTS SAID IT PLANS TO ACQUIRE BRODERBUND SOFTWARE IN A STOCK SWAP VALUED AT ABOUT 400 MILLION WMX STUNNED INVESTORS WITH ITS SECOND STRAIGHT QUARTER OF LOWERTHANANTICIPATED PROFIT AND INDICATED MORE TROUBLE LIES AHEAD SENDING ITS SHARES PLUNGING 325 OR 115 TO 25 EPA RULES PROTECTING BANKS AND SAVINGS INSTITUTIONS FROM HAVING TO PAY FOR CLEANUPS AT HAZARDOUSWASTE SITES WERE INVALIDATED BY A US APPEALS COURT A SHARP BLOW TO LENDERS THE IRS IS MAKING A ONETIME SETTLEMENT OFFER TO COMPANIES IN TAX DISPUTES INVOLVING HOW THEY ACCOUNTED FOR INTANGIBLE CORPORATE ASSETS THE SEC PROPOSED REQUIRING SECURITIES BROKERS TO KEEP ELECTRONIC RECORDS OF ALL TRADES BY LARGE TRADERS TRYING AGAIN TO MAKE IT EASIER FOR THE AGENCY TO IDENTIFY LARGE TRANSACTIONS THAT TAKE PLACE IN VOLATILE SESSIONS BONDS LEHMAN BROTHERS TREASURY INDEX 553741 UP 2536 COMMODITIES OIL 1460 A BARREL OFF 61 CENTS DOW JONES FUTURES INDEX 14478 UP 044 SPOT INDEX 13114 UP 051 DOLLAR 10835 YEN OFF 040 17585 MARKS OFF 00055 9402100036 940210 BUSINESS BRIEF NL INDUSTRIES INC FOURTHPERIOD LOSS WIDENED AND SALES DECLINED BY 81 NL INDUSTRIES INC POSTED A WIDENED FOURTHQUARTER LOSS ON AN 81 DROP IN SALES BLAMING WEAK PRICES FOR TITANIUM OXIDE PIGMENT THE CHEMICAL COMPANY'S MAIN PRODUCT THE HOUSTONBASED COMPANY CONTROLLED BY INVESTOR HAROLD SIMMONS THROUGH PUBLICLY TRADED VALHI CORP HAD A LOSS IN THE QUARTER OF 496 MILLION BEFORE A 278 MILLION CHARGE RELATED TO THE RETIREMENT OF DEBT AND A 12 MILLION ACCOUNTING GAIN THE LOSS WAS 23 MILLION A YEAR EARLIER NL HAD A LOSS OF 173 MILLION SALES DROPPED IN THE LATEST QUARTER TO 1833 MILLION FROM 1995 MILLION FOR ALL 1993 THE NET LOSS WAS 1098 MILLION AFTER THE ONETIME ITEMS A YEAR EARLIER THE LOSS TOTALED 764 MILLION AFTER A 318 MILLION ACCOUNTING CHARGE SALES FOR THE YEAR WERE DOWN 99 TO 8053 MILLION FROM 8935 MILLION THE EARNINGS WERE RELEASED AFTER THE STOCK MARKET CLOSED 9402100035 940210 FLEET FINANCIAL PICKS CRITIC TO RUN 140 MILLION FUND BOSTON FLEET FINANCIAL GROUP INC'S 8 BILLION LOAN INITIATIVE FOR LOWINCOME AND SMALLBUSINESS BORROWERS INCLUDES A 140 MILLION FUND TO BE RUN BY BRUCE MARKS A BANK ACTIVIST WHO HAS BEEN ONE OF FLEET'S HARSHEST CRITICS PEOPLE FAMILIAR WITH THE AGREEMENT SAY BOTH FLEET AND MR MARKS DECLINED TO DISCUSS THE INITIATIVE REPORTED IN YESTERDAY'S WALL STREET JOURNAL MR MARKS IS EXECUTIVE DIRECTOR OF THE UNION NEIGHBORHOOD ASSISTANCE CORP A SMALL BOSTON HOUSING ADVOCACY GROUP AFFILIATED WITH THE HOTEL WORKERS UNION HERE THE INITIATIVE WHICH WILL AMOUNT TO ABOUT 8 BILLION OVER THREE YEARS WILL BE ANNOUNCED TODAY IN WASHINGTON IT FOLLOWS TWO YEARS OF CRITICISM OF FLEET'S LENDING IN THE INNER CITY AND TO MINORITIES THE PROVIDENCE RI BANK'S CONSUMER CREDIT UNIT BASED IN ATLANTA HAS BEEN ACCUSED OF UNUSUALLY HIGH INTEREST RATES AND PREDATORY PRACTICES MR MARKS WHO HAS CALLED HIMSELF THE BANKING INDUSTRY'S WORST NIGHTMARE BECAUSE OF HIS ADVOCACY WORK WILL HELP RUN A LOAN POOL OF 140 MILLION FOR LOWINCOME BORROWERS IN MASSACHUSETTS NEW YORK RHODE ISLAND NEW JERSEY AND WASHINGTON DC BANKING INSIDERS SAID 9402100034 940210 INTERNATIONAL O'REILLY BUYS 31 STAKE IN ARGUS NEWSPAPER GROUP JOHANNESBURG SOUTH AFRICA ONLY A FEW DAYS AFTER ACQUIRING 249 OF THE BRITISH DAILY THE INDEPENDENT IRISH NEWSPAPER MAGNATE TONY O'REILLY CONTINUED HIS INTERNATIONAL BUYING SPREE BY PURCHASING 31 OF ARGUS NEWSPAPERS SOUTH AFRICA'S LARGEST NEWSPAPER GROUP THE VALUE OF THE TRANSACTION WASN'T DISCLOSED AND DEPENDS IN PART ON THE FUTURE FLOTATION OF PART OF THE REMAINDER OF ARGUS STOCK BUT MR O'REILLY SAID IT INVOLVED A BALLPARK FIGURE OF ABOUT 125 MILLION RAND 364 MILLION ARGUS CONTROLS SEVEN DAILIES FIVE WEEKEND NEWSPAPERS AND ONE WEEKLY NEWSPAPER ITS DOMINANT POSITION IN THE MEDIA HAD RECENTLY COME UNDER ATTACK BY THE AFRICAN NATIONAL CONGRESS WHICH OBJECTS TO THE WAY THE COUNTRY'S ECONOMY IS CONCENTRATED IN THE HANDS OF A FEW CORPORATE BEHEMOTHS THE STAKE MR O'REILLY IS PURCHASING IS TO BE BOUGHT FROM ITS MAJOR SHAREHOLDERS JOHANNESBURG CONSOLIDATED INVESTMENT CO AND ANGLO AMERICAN CORP A GIANT CONGLOMERATE THAT HAD BEEN EAGER TO DIVEST ITSELF OF ITS HOLDING TO DIFFUSE THE OWNERSHIP COMPLAINTS 9402100033 940210 BUSINESS BRIEF LITTLEFIELD ADAMS & CO FIRM GETS HALT IN TRADING PENDING CORPORATE NEWS LITTLEFIELD ADAMS & CO A SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION INQUIRY ASKED THAT TRADING IN ITS SHARES BE HALTED BECAUSE OF PENDING CORPORATE NEWS BUT THE COMPANY WHICH SELLS LEISURE WEAR AND MEDICAL PRODUCTS DIDN'T MAKE ANY ANNOUNCEMENT BY THE CLOSE OF BUSINESS THE AMERICAN STOCK EXCHANGE DIDN'T BEGIN TRADING THE STOCK YESTERDAY MORNING SAYING A COMPANY ANNOUNCEMENT WAS EXPECTED LATER YESTERDAY THE EXCHANGE SAID TRADING WOULDN'T RESUME A LITTLEFIELD SPOKESMAN SAID HE EXPECTS THE COMPANY TO MAKE THE ANNOUNCEMENT WITHIN A FEW DAYS ON TUESDAY LITTLEFIELD'S STOCK FELL 1375 TO 19375 AFTER THE COMPANY ISSUED A NEWS RELEASE ABOUT THE SEC INQUIRY LITTLEFIELD SAID IT ISSUED THAT RELEASE ONLY BECAUSE A RECENT TELEVISION REPORT HAD SUGGESTED THE SEC PROBE WAS NEW WHEN IN FACT IT WAS ANNOUNCED LAST SUMMER 9402100032 940210 MARKETING BRIEF BLOOMBERG PL UNIT EXPECTED TO ANNOUNCE LAUNCH OF TV NEWS NETWORK BLOOMBERG PL'S BLOOMBERG FINANCIAL MARKETS IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL LAUNCH A BUSINESSTELEVISION NEWS NETWORK TO BE BROADCAST BY GENERAL MOTORS CORP'S UNIT HUGHES ELECTRONICS CORP'S DIRECTV SATELLITE MICHAEL BLOOMBERG SAID THE PROGRAM TO BE PRODUCED IN ALLIANCE WITH THE US CHAMBER OF COMMERCE WILL OFFER 13 HOURS OF BUSINESS NEWS 6 AM TO 7 PM EST STARTING IN MAY HE SAID HE EXPECTS THE NETWORK BLOOMBERG DIRECT TO OFFER 24HOURADAY PROGRAMING BY YEAR END DIRECTV CUSTOMERS WILL USE A SATELLITE DISH AND A DECODER BOX TO RECEIVE THE SIGNALS LAST MONTH DOW JONES & CO PUBLISHER OF THIS NEWSPAPER ANNOUNCED A SIMILAR DIRECTBROADCASTING SERVICE IT PURCHASED A MINORITY STAKE IN HUBBARD BROADCASTING INC AND WILL PROVIDE BROADCASTING FOR HUBBARD'S NEW US SATELLITE BROADCASTING VENTURE A NATIONAL DIRECTBROADCAST SATELLITE SERVICE BEGINNING OPERATION IN APRIL BLOOMBERG LP'S NAME WAS MISSTATED AS BLOOMBERG PL IN AN ARTICLE YESTERDAY THAT DESCRIBED BLOOMBERG'S PLANS TO LAUNCH A BUSINESSNEWS TELEVISION NETWORK 9402100031 940210 BUSINESS BRIEF DIGITAL MICROWAVE CORP LAWSUIT VENTURE ARE CITED FOR FISCAL 3RDPERIOD LOSS DIGITAL MICROWAVE CORP HAD A FISCAL THIRDQUARTER NET LOSS OF 254 MILLION DUE TO THE SETTLEMENT OF A LAWSUIT AND THE ANTICIPATED LIQUIDATION OF A VENTURE IN MALAYSIA THE MAKER OF COMMUNICATIONS PRODUCTS IN SAN JOSE CALIF SAID THE QUARTER ENDED DEC 31 INCLUDED A ONETIME CHARGE OF 20 MILLION FOR EXPENSES ASSOCIATED WITH SETTLING A CLASSACTION LAWSUIT FILED IN 1990 WHICH HAD ALLEGED SECURITIESLAWS VIOLATIONS THE COMPANY SAID THE SETTLEMENT IS CONTINGENT ON ITS ABILITY TO COMPLETE A FINANCING AND ON COURT APPROVAL IN ADDITION THE THIRD QUARTER INCLUDED A ONETIME CHARGE OF 7 MILLION FOR WRITEOFFS ASSOCIATED WITH A JOINT VENTURE IN MALAYSIA DIGITIAL MICROWAVE HAD A NET LOSS FOR THE QUARTER OF 254 MILLION OR 203 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 11 MILLION OR NINE CENTS A SHARE SALES ROSE 14 TO 306 MILLION COMPARED WITH 268 MILLION A YEAR EARLIER 9402100030 940210 COUNSEL TO STUDY REPORT ON DOCUMENT SHREDDING WASHINGTON THE SPECIAL COUNSEL INVESTIGATING THE WHITEWATER AFFAIR WILL LOOK INTO A PUBLISHED REPORT ALLEGING THAT HILLARY RODHAM CLINTON'S FORMER LAW FIRM SHREDDED DOCUMENTS RELATED TO THE MATTER THE ROSE LAW FIRM YESTERDAY DENIED AN ACCOUNT IN THE WASHINGTON TIMES QUOTING AN UNIDENTIFIED EMPLOYEE OF THE ROSE LAW FIRM AS SAYING HE HAD PARTICIPATED IN DESTROYING WHITEWATER DOCUMENTS LAST THURSDAY THE LITTLE ROCK ARK LAW FIRM REPRESENTED MADISON GUARANTY SAVINGS & LOAN WHICH IS AT THE CENTER OF THE WHITEWATER AFFAIR BECAUSE ITS OWNER WAS A PARTNER OF THE CLINTONS IN THE FAILED REAL ESTATE DEVELOPMENT DEAL NOW UNDER INVESTIGATION BY SPECIAL COUNSEL ROBERT B FISKE JR RONALD M CLARK THE MANAGING PARTNER OF THE ROSE LAW FIRM SAID YESTERDAY THAT THERE HAS BEEN NO DESTRUCTION OF DOCUMENTS TO MY KNOWLEDGE HE SAID THE LAW FIRM HAS BEEN SYSTEMATICALLY ACCUMULATING AND THEN SAFE KEEPING ANY DOCUMENTS RELATED TO MADISON TO MY KNOWLEDGE HE ADDED THE FIRM HAS NO SUBSTANTIAL DOCUMENTS WHATSOEVER WITH RESPECT TO WHITEWATER MR CLARK ALSO SAID THAT LAST MONTH THE ROSE LAW FIRM RETAINED VINSON & ELKINS A 530LAWYER HOUSTON LAW FIRM TO REPRESENT IT IN ANYTHING AND EVERYTHING THAT ARISES OUT OF THIS MATTER 9402100029 940210 US AGENCY UNVEILS PLAN TO SAVE NORTHWEST SALMON WASHINGTON FEDERAL FISH REGULATORS UNVEILED A MUCHANTICIPATED PLAN TO SAVE NORTHWESTERN SALMON BUT THE PLAN DIFFERS ONLY MODESTLY FROM PAST FAILED EFFORTS TO HELP THE RAPIDLY DECLINING FISH THE PLAN WAS WORKED OUT BY THE NATIONAL MARINE FISHERIES SERVICE IN COORDINATION WITH THREE AGENCIES INVOLVED IN THE OPERATION OF THE HUGE DAMS ALONG THE COLUMBIA AND SNAKE RIVERS IN OREGON WASHINGTON AND IDAHO THOSE DAMS ARE THE MAIN CULPRITS IN THE SALMON'S RAPID DECLINE WHICH HAS SEEN FISH NUMBERS PLUNGE TO LESS THAN TWO MILLION TODAY FROM ABOUT 16 MILLION A FEW DECADES AGO THE DAMS MINCE SALMON BY THE MILLIONS AND SLOW DOWN RIVER FLOWS MAKING IT IMPOSSIBLE FOR SALMON TO MIGRATE BETWEEN SPAWNING GROUNDS AND THE SEA THE CENTERPIECE OF THE NEW PLAN IS A PROPOSAL TO INCREASE FLOWS IN THE TWO RIVERS BY ROUGHLY 50 AT CERTAIN TIMES OF THE YEAR IN HOPES OF SPEEDING SALMON DOWNSTREAM SOME ENVIRONMENTALISTS CALLED THE PLAN A STEP IN THE RIGHT DIRECTION HOWEVER MOST ENVIRONMENTALISTS AND MANY SCIENTISTS BELIEVE MOREDRASTIC CHANGES IN THE WAY THE DAMS ARE OPERATED ARE NEEDED TO SAVE THE FISH 9402100028 940210 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG COMPUTERS ARE PRETTY GOOD AT PRODUCING PAPER COPIES OF DOCUMENTS CREATED ELECTRONICALLY BUT REVERSING THE PROCESS HAS BEEN A KILLER GETTING PAPER DOCUMENTS INTO YOUR COMPUTER TURNING THEM INTO ELECTRONIC FILES AND THEN ORGANIZING THEM EFFECTIVELY HAS BEEN NEXT TO IMPOSSIBLE FOR MAINSTREAM USERS THERE ARE OF COURSE MANY SCANNERS DESIGNED TO CONVERT HARD COPY TO ELECTRONIC IMAGES AND EVEN ELABORATE DOCUMENTIMAGING AND MANAGEMENT SYSTEMS HOWEVER MOST OF THESE THINGS ARE TOO EXPENSIVE TOO BULKY OR TOO HARD TO INSTALL AND USE FOR NONTECHNICAL FOLKS OR SMALL COMPANIES THAT'S A MAJOR REASON THE PROMISE OF A PAPERLESS OFFICE HAS BEEN AN EMPTY ONE NOW A LITTLE STARTUP COMPANY VISIONEER COMMUNICATIONS OF PALO ALTO CALIF 8007877007 HAS CRACKED THE PROBLEM IT HAS CREATED A SMALL SIMPLE INEXPENSIVE AND ELEGANT SCANNING SYSTEM CALLED PAPERMAX THAT MAKES IT CHILD'S PLAY TO LOAD IMAGES OF PAPER DOCUMENTS INTO YOUR COMPUTER AND ORGANIZE AND MANAGE THEM PAPERMAX IS ONE OF THE MOST IMPRESSIVE OFFICETECHNOLOGY PRODUCTS I'VE SEEN IN YEARS THE VISIONEER PRODUCT WHICH LISTS FOR 499 CONSISTS OF TWO PARTS FIRST IS THE HARDWARE IT'S A STATIONARY DEVICE THAT PACKS MOST OF THE FUNCTIONALITY OF A BIG HEAVY FLATBED SCANNER INTO A STYLISH UNIT THAT'S JUST THREE INCHES DEEP LESS THAN FOUR INCHES HIGH ABOUT A FOOT WIDE AND WEIGHS ONLY 25 POUNDS THE WHOLE THING IS SO SMALL THAT IT CAN BE TUCKED INTO THE SPACE BETWEEN A KEYBOARD AND THE COMPUTER OR MONITOR OR TRANSPORTED EASILY FOR USE WITH A PORTABLE COMPUTER DOCUMENTS ARE FED INTO A SLOT ON THE FRONT OF THE PAPERMAX AND RETURNED THROUGH AN OPENING AT THE TOP IT ATTACHES TO THE COMPUTER BY SIMPLY PLUGGING INTO A SERIAL PORT THERE'S NO NEED TO INSERT ANY CIRCUIT BOARDS THE SCANNER ONLY WORKS WITH COMPUTERS RUNNING MICROSOFT'S WINDOWS SOFTWARE BUT VISIONEER PROMISES A VERSION FOR APPLE MACINTOSH COMPUTERS THIS SPRING THE SECOND PART OF THE SYSTEM IS A BEAUTIFULLY DESIGNED SOFTWARE PROGRAM CALLED MAXMATE WHICH CONTROLS THE SCANNER AND ALLOWS USERS TO ORGANIZE VIEW ANNOTATE AND TRANSMIT THE IMAGES OF DOCUMENTS SCANNED BY PAPERMAX OPERATING THE SYSTEM COULDN'T BE SIMPLER YOU DON'T EVEN HAVE TO PUSH A BUTTON FLIP A SWITCH OR MANUALLY START UP THE MAXMATE PROGRAM AT ANY TIME NO MATTER WHAT PROGRAM YOU'RE USING YOU CAN POP A PIECE OF PAPER INTO THE SCANNER IT AUTOMATICALLY TURNS ON GRABS THE PAPER AND SCANS IT VERY VERY QUICKLY A WINDOW POPS UP ON THE SCREEN TO SHOW THE IMAGE AS IT'S BEING RECEIVED THEN THE MAXMATE SOFTWARE LAUNCHES ITSELF SO YOU CAN WORK WITH THE NEW IMAGE IN MY TESTS THE SCANNER HANDLED EVERYTHING FROM BUSINESS LETTERS TO GLOSSY FLIERS TO CLIPPINGS RIPPED FROM THIS NEWSPAPER AND A CRINKLED MAGAZINE PAGE WITH A TEAR IN THE EDGE IT EVEN STRAIGHTENS OUT THE IMAGE IF YOU PUT THE PAPER IN CROOKED THE SOFTWARE IS VERSATILE IT PRESENTS ICONS FOR EACH SCANNED DOCUMENT AND LETS YOU ZOOM IN ON ANY ONE YOU CAN ANNOTATE THE DOCUMENTS WITH AN ELECTRONIC YELLOW HIGHLIGHTER OR BY PLACING ELECTRONIC COMMENTS AND NOTATIONS ON IT YOU ALSO CAN COMPILE DOCUMENTS INTO STACKS BY DRAGGING THEIR ICONS INTO A PILE ON THE SCREEN MAXMATE COMBINES THE PAGES INTO A SINGLE FILE YOU CAN FLIP THROUGH PAGE BY PAGE YOU CAN SEARCH FOR DOCUMENTS BY FILE NAME DATE OR BY WORDS IN ANNOTATIONS YOU'VE MADE EVEN BETTER YOU CAN CREATE STACKS THAT COMBINE SCANNEDIN PAGES AND ELECTRONIC DOCUMENTS YOU CREATE IN WORD PROCESSORS SPREADSHEETS AND OTHER PROGRAMS YOU MERELY PRINT FROM THESE OTHER PROGRAMS TO THE MAXMATE SOFTWARE AND THE ELECTRONIC FILES APPEAR IN MAXMATE THE SOFTWARE ALSO HAS PLENTY OF OPTIONS FOR REUSING OR TRANSMITTING SCANNED IMAGES YOU CAN REPRINT THE SCANNED IMAGES OR FAX THEM ELECTRONICALLY IF YOU HAVE A FAX MODEM AND SOFTWARE YOU CAN SEND THEM TO OTHER COMPUTERS VIA ELECTRONIC MAIL OR FLOPPY DISK VISIONEER SUPPLIES FREE SOFTWARE THAT LETS USERS OF MACINTOSHES OR IBMCOMPATIBLES WITHOUT WINDOWS VIEW THE SCANNED DOCUMENT IMAGES SO WHAT ARE THE DOWNSIDES OF PAPERMAX IT'S DESIGNED AS A SINGLEUSER BUSINESS TOOL TO HANDLE A RELATIVELY LOW VOLUME OF DOCUMENTS THAT MAINLY CONSIST OF TEXT AND LIMITED GRAPHICS IT ACCEPTS JUST ONE SHEET AT A TIME AND ISN'T MEANT FOR HIGHVOLUME SCANNING WHILE IT CAN SCAN PHOTOGRAPHS IT ISN'T DESIGNED TO DO PROFESSIONAL GRAPHICAL RENDERING AND MANIPULATION IT ALSO LACKS ANY OPTICAL CHARACTER RECOGNITION ABILITY SO IT CAN'T TRANSLATE SCANNED DOCUMENTS INTO EDITABLE TEXT THEY EXIST IN YOUR COMPUTER ONLY AS PICTURES OF THE PAPER ORIGINALS UNLESS YOU BUY TRANSLATION SOFTWARE WHAT'S MORE LIKE MANY OTHER ADDON DEVICES IT MUST COMPETE FOR A LIMITED NUMBER OF SERIAL PORTS ON THE IBMCOMPATIBLE PC SO YOU MAY NEED TO RECONFIGURE A MOUSE OR MODEM AND ONE FEATURE IN WHICH YOU CAN COMBINE ELECTRONIC DOCUMENTS WITH SCANNED IMAGES DOESN'T WORK WELL ON COMPUTERS THAT USE A FEW MODELS OF CERTAIN VIDEO CARDS INCLUDING THOSE FROM ORCHID AND DIAMOND FINALLY THIS BREAKTHROUGH PRODUCT IS JUST COMING ON THE MARKET AND MAY BE HARD TO BUY IN STORES UNLESS YOU ASK THEM TO ORDER IT VISIONEER SAYS ONE MAILORDER HOUSE CLUB PC 8002582721 STOCKS THE PAPERMAX AND THE COMPANY EXPECTS OTHER OUTLETS TO DO SO SOON IF YOU WANT TO GET RID OF PILES OF PAPER AND STORE DOCUMENTS ELECTRONICALLY IT'S WORTH THE TROUBLE TO TRACK DOWN A PAPERMAX 9402100027 940210 ESTIMATE OF QUAKE DAMAGE IS LOWERED TO 15 BILLION SACRAMENTO CALIF CALIFORNIA GOV PETE WILSON'S OFFICIAL IN CHARGE OF DAMAGE ESTIMATES FOR THE JAN 17 LOS ANGELESAREA EARTHQUAKE SAID THE COST MAY BE NEAR THE LOWER END OF A RANGE BETWEEN 13 BILLION AND 20 BILLION AT A NEWS CONFERENCE IN PASADENA RICHARD ANDREWS DIRECTOR OF THE STATE'S OFFICE OF EMERGENCY SERVICES SAID CURRENT ESTIMATES PUT DAMAGES PERHAPS AT 15 BILLION IN THE DAYS IMMEDIATELY AFTER THE QUAKE STATE OFFICIALS HAD ESTIMATED THAT DAMAGE FROM THE QUAKE WOULD BE BETWEEN 15 BILLION AND 30 BILLION AND HAD CALLED SUCH NUMBERS CONSERVATIVE AS WE CONTINUE WITH OUR INSPECTIONS AND GET A BETTER HANDLE ON THE POSSIBLE DAMAGE TO UNDERGROUND WATER AND SEWAGE LINES AND PRIVATE DAMAGE WE WILL UPDATE THOSE FIGURES FOR YOU PERIODICALLY MR ANDREWS SAID SEPARATELY IN A LETTER TO GOV WILSON STATE DIRECTOR OF FINANCE RUSSELL S GOULD ESTIMATED THE PUBLIC COST OF THE QUAKE AT 116 BILLION TO THE FEDERAL GOVERNMENT 19 BILLION TO THE STATE OF CALIFORNIA AND 135 MILLION TO STATE AND LOCAL GOVERNMENTS MR GOULD'S LETTER STRESSED HOWEVER THAT THE ESTIMATES WILL CHANGE OVER TIME AS NEW INFORMATION BECOMES AVAILABLE 9402100026 940210 INTERNATIONAL BRIEF MARUBENI CORP CUTBACK MADE IN FORECAST OF UNCONSOLIDATED PROFIT MARUBENI CORP ONE OF JAPAN'S SIX LARGEST GENERAL TRADING HOUSES ANNOUNCED THAT IT CUT ITS FORECAST FOR UNCONSOLIDATED PROFIT FOR THE YEAR ENDING MARCH 31 TO AROUND SEVEN BILLION YEN 644 MILLION THE COMPANY SAID THE REVISION IS A RESULT OF EXTRAORDINARY LOSSES STEMMING IN PART FROM LIQUIDATION OF ITS UNPROFITABLE FINANCIAL UNIT MARUBENI LEASING CORP THE FORECAST WAS CUT 46 FROM 13 BILLION YEN AND WOULD REPRESENT A 36 DROP FROM THE 1092 BILLION YEN PROFIT THE COMPANY POSTED LAST FISCAL YEAR SLUGGISHNESS IN JAPAN'S STOCK MARKET LED TO SUBSTANTIAL LOSSES IN THE SPECIFIED MONEY TRUSTS AND FUND TRUSTS MANAGED BY MARUBENI LEASING 9402100025 940210 BIGMAILER GROUP SUPPORTS POSTAL RATE RISE OF 103 WASHINGTON A GROUP OF THE NATION'S BIGGEST MAILERS URGED THE POSTAL SERVICE'S BOARD TO RAISE RATES BY 103 A MOVE DESIGNED TO HEAD OFF A LARGER INCREASE THE GROUP CALLED THE MAILER'S COUNCIL SAID IT WAS THE FIRST TIME THE BUSINESS COMMUNITY HAS UNITED TO SEEK AN INCREASE THE COUNCIL IS COMPRISED OF 60 COMPANIES AND TRADE ASSOCIATIONS REPRESENTING THE POSTAL SERVICE'S BIGGEST CUSTOMERS THE BOOST BEING CONSIDERED BY THE POSTAL BOARD WOULD RAISE RATES FOR ALL CLASSES OF MAIL BY 103 THE PRICE OF MAILING A TYPICAL FIRSTCLASS LETTER WOULD RISE TO 32 CENTS POSTMASTER GENERAL MARVIN RUNYON HAS SAID HE BACKS THE INCREASE RATHER THAN AN OVERALL 138 RATE RISE THAT WOULD HIT VARIOUS CLASSES OF MAIL DIFFERENTLY THE BOARD IS EXPECTED TO MAKE ITS DECISION NEXT MONTH BUT ANY RATE INCREASE WOULDN'T TAKE EFFECT UNTIL NEXT YEAR MAILER'S COUNCIL OFFICIALS SAID APPROVAL OF THE 103 RISE WOULD KEEP THE BUSINESS COMMUNITY FROM SUING OVER THE RATE INCREASE EARLIER BOOSTS HAVE LED TO LITIGATION AS GROUPS JOCKEYED OVER WHICH CLASSES OF MAIL WOULD BEAR THE HIGHEST BURDEN THE BUSINESS ASSOCIATION SAID IT REALIZES THAT THE SMALLER INCREASE WOULD ONLY BE A STOPGAP THE RISE WOULD BE MINIMALLY SUFFICIENT FOR THE POSTAL SERVICE'S NEEDS FOR THE NEXT TWO YEARS THE MAILER'S COUNCIL MANAGING DIRECTOR ARTHUR SACKLER SAID 9402100024 940210 BUSINESS BRIEF CAE INC SILVER SPRING MD FACILITY TO CLOSE BY END OF THE YEAR CAE INC RESPONDING TO A SLOWDOWN IN ORDERS FROM THE US MILITARY FOR SIMULATION AND TRAINING SYSTEMS SAID IT WILL CLOSE ITS FACILITY AT SILVER SPRING MD BY THE END OF THE YEAR CAE SAID THE FACILITY'S PRODUCT LINES WILL BE TRANSFERRED TO BINGHAMTON NY HEADQUARTERS OF THE COMPANY'S CAELINK MILITARYSIMULATION UNIT THE CLOSURE WILL RESULT IN ABOUT 160 LAYOFFS AND ANOTHER 55 OR SO EMPLOYEES WILL BE OFFERED TRANSFERS TO BINGHAMTON CAE SAID CAELINK HAS 3800 EMPLOYEES IN TOTAL CAE BASED IN TORONTO SAID LAST WEEK IT HAD SET ASIDE FROM ITS EARNINGS 33 MILLION CANADIAN DOLLARS US246 MILLION TO COVER THE COSTS OF REDUCING CAELINK'S OPERATIONS CAE SAID IT PLANS TO ANNOUNCE MORE COSTSAVING MEASURES LATER THE COMPANY ALSO WROTE DOWN THE VALUE OF CAELINK BY C3965 MILLION OR 60 TO REFLECT REDUCED DEMAND IN THE INDUSTRY THE SILVER SPRING SITE MAKES TRIDENT SUBMARINE COMMAND AND CONTROL TRAINERS ANTISUBMARINEWARFARE TRAINERS FOR PATROL AIRCRAFT AND OTHER TRAINING DEVICES 9402100023 940210 TECHNOLOGY & HEALTH ELECTRONIC ARTS PLANS ACQUISITION OF BRODERBUND BY CARRIE DOLAN AND DON CLARK STAFF REPORTERS OF THE WALL STREET JOURNAL ELECTRONIC ARTS INC SAID IT WILL ACQUIRE BRODERBUND SOFTWARE INC IN A STOCK SWAP VALUED AT ABOUT 400 MILLION THE TRANSACTION UNITES TWO LEADERS IN ATTRACTIVE NICHES OF THE SOFTWARE MARKET AND COULD INCREASE THEIR ABILITY TO FEND OFF TURF INCURSIONS FROM NEW ENTRANTS SUCH AS MICROSOFT CORP THE INDUSTRY'S REIGNING LEADER BRODERBUND IN PARTICULAR SAID ELECTRONIC ARTS WOULD HELP THE SMALLER COMPANY EXPAND INTO INTERNATIONAL MARKETS AND NEW HARDWARE OPPORTUNITIES BRODERBUND FOUNDED IN 1980 BY SEVERAL MEMBERS OF THE CARLSTON FAMILY HAS FOCUSED ON EDUCATIONAL AND CREATIVITY SOFTWARE IN ADDITION TO GAMES ITS PRODUCTS INCLUDE THE GEOGRAPHICALGAME SERIES THAT STARTED WITH WHERE IN THE WORLD IS CARMEN SANDIEGO ELECTRONIC ARTS FOUNDED IN 1982 SPECIALIZES IN GAMES AND ENTERTAINMENT TITLES FOR PERSONAL COMPUTERS AND VIDEOGAME MACHINES WITH SPECIALTIES THAT INCLUDE A POPULAR LINE OF SPORTS TITLES TRIP HAWKINS THE COMPANY'S FORMER CHIEF EXECUTIVE LEFT TO START A CLOSELY WATCHED MULTIMEDIA CONCERN 3DO CO WHICH IS ATTEMPTING TO SET A NEW STANDARD FOR GAME SYSTEMS THAT HOOK UP TO LIVING ROOM TELEVISIONS MR HAWKINS WHO REMAINS CHAIRMAN OF ELECTRONIC ARTS ALSO PLEDGED TO VOTE HIS 7 STAKE FOR THE ACQUISITION LEE ISGUR AN ANALYST AT VOLPE WELTY & CO CALLED THE MERGER A BRILLIANT MOVE FOR BOTH COMPANIES IT WILL HELP ELECTRONIC ARTS GAIN AN INSTANT BOOST INTO THE ENTERTAINMENT MARKET HE SAID AND HELP BRODERBUND GROW MORE QUICKLY THEY ARE VERY CASHRICH COMPANIES MR ISGUR SAID NEITHER OF THEM HAS TO DO ANYTHING UNDER THE AGREEMENT HOLDERS OF BRODERBUND COMMON STOCK WILL RECEIVE 16 COMMON SHARES OF ELECTRONIC ARTS STOCK FOR EACH BRODERBUND SHARE ABOUT 154 MILLION COMMON SHARES OF ELECTRONIC ARTS WILL BE EXCHANGED FOR BRODERBUND STOCK REPRESENTING ABOUT 25 OF THE COMBINED COMPANY ON A PROFORMA BASIS DOUG CARLSTON BRODERBUND'S CHAIRMAN AND CHIEF EXECUTIVE WILL JOIN ELECTRONIC ARTS' BOARD INCREASING IT TO EIGHT MEMBERS MR CARLSTON WHO HOLDS AN 18 STAKE IN BRODERBUND HAS AGREED TO VOTE HIS SHARES IN FAVOR OF THE MERGER FOR ITS LAST FISCAL YEAR ENDED AUG 31 BRODERBUND'S PROFIT ROSE 41 TO 136 MILLION OR 136 A SHARE FROM 97 MILLION OR 99 CENTS A SHARE A YEAR EARLIER REVENUE WAS 956 MILLION FOR THE NINE MONTHS ENDED DEC 31 ELECTRONIC ARTS EARNED 335 MILLION OR 67 CENTS A SHARE ON REVENUE OF 311 MILLION COMPARED WITH YEAREARLIER NET INCOME OF 22 MILLION OR 48 CENTS A SHARE ON REVENUE OF 212 MILLION NEWS OF THE TRANSACTION CAME AFTER MARKETS CLOSED IN NASDAQ STOCK MARKET TRADING YESTERDAY ELECTRONIC ARTS CLOSED AT 2550 A SHARE DOWN 75 CENTS OR 29 ALSO ON NASDAQ BRODERBUND CLOSED AT 4125 UP 375 OR 10END 9402100022 940210 SERBS ORDERED TO LIFT SIEGE OF SARAJEVO NATO WARNS OF AIR STRIKES IN 10 DAYS IF GUNS STAY ALL SHELLING IS BARRED BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NORTH ATLANTIC TREATY ORGANIZATION ORDERED BOSNIA'S SERBS TO END THEIR SHELLING OF SARAJEVO AND TO WITHDRAW ALL HEAVY WEAPONS OR FACE AIR STRIKES SIMILAR THREATS HAVE BEEN ISSUED AND IGNORED IN THE PAST BUT PRESIDENT CLINTON WHO LOBBIED THE PLAN HARD WITH HIS NATO ALLIES INSISTED THAT THIS TIME WOULD BE DIFFERENT WE HOPE THAT BOSNIAN SERB ACTIONS WILL MAKE AIR STRIKES UNNECESSARY MR CLINTON SAID BUT NO ONE SHOULD DOUBT NATO'S RESOLVE NATO IS NOW SET TO ACT EVEN THEN US OFFICIALS CAUTIONED THAT AIR STRIKES COULD HAVE A LIMITED EFFECT ON ENDING THE SUFFERING AND BLOODSHED IN BOSNIA NO ONE EXPECTS THIS TO END THE CONFLICT OR EVEN LIFT THE SIEGE OF SARAJEVO SAID A TOP US OFFICIAL OFFICIALS SAID THEY WERE HOPING THAT YESTERDAY'S ULTIMATUM WOULD DETER FURTHER SERBIAN ATTACKS AND PAVE THE WAY FOR NEW PEACE NEGOTIATIONS THE PLAN HAMMERED OUT IN A 13HOUR MEETING OF NATO AMBASSADORS IN BRUSSELS GIVES THE SERBS 10 DAYS TO EITHER WITHDRAW THEIR ARTILLERY MORTARS AND TANKS 12 MILES BEYOND THE CENTER OF SARAJEVO OR PLACE THOSE WEAPONS UNDER UNITED NATIONS CONTROL ANY SHELLING BEFORE THAT COULD FACE IMMEDIATE RETALIATION US OFFICIALS SAID THAT AIR STRIKES COULD BE LAUNCHED AGAINST ARTILLERY EMPLACEMENTS ANTIAIRCRAFT WEAPONS AS WELL AS THEIR SUPPORT EQUIPMENT BOSNIA'S SERBS HAVE AT LEAST 100 HEAVY WEAPONS ENCIRCLING SARAJEVO BOSNIA'S MUSLIMS WHO HAVE A SMALL FRACTION OF THAT WON'T BE REQUIRED TO WITHDRAW OR TURN OVER THEIR WEAPONS BUT THE NOSHOOT ORDER WILL APPLY TO THEM AS WELL EVEN BEFORE THE NATO ULTIMATUM WAS ISSUED BOSNIA'S SERBS TOLD THE UNITED NATIONS COMMANDER IN SARAJEVO THAT THEY WOULD WITHDRAW THEIR WEAPONS FROM AROUND THE BESIEGED CAPITAL FACED WITH SIMILAR THREATS IN THE PAST THE SERBS HAVE MADE SIMILAR PROMISES BUT FAILED TO FOLLOW THROUGH WHETHER THEY WILL HONOR THEIR COMMITMENT THIS TIME IS FAR FROM CERTAIN IN ADDITION BOSNIA'S MUSLIMLED GOVERNMENT AND THE BOSNIAN SERB FORCES AGREED TO YET ANOTHER CEASEFIRE AROUND SARAJEVO YESTERDAY ALTHOUGH ALL PREVIOUS CEASEFIRES HAVE BEEN BROKEN THE UN COMMANDER IN BOSNIA GEN MICHAEL ROSE WELCOMED THE LATEST AGREEMENT AS A VERY SMALL START ON A VERY LARGE PROBLEM WHILE MR CLINTON ACKNOWLEDGED THAT AMERICAN PILOTS WHO WILL BE PART OF A MULTINATIONAL FORCE COULD FACE SOME RISK FROM SERB ARTILLERY HE EMPHASIZED THAT THERE WOULDN'T BE ANY AMERICAN GROUND TROOPS INVOLVED IN THE OPERATION PORTRAYING THE BOSNIAN WAR AS A EUROPEAN PROBLEM THE PRESIDENT SEEMED TO PLAY DOWN A POSSIBLE ROLE FOR AMERICAN PEACEKEEPERS IN THE FUTURE WE HAVE SAID THAT THE AMERICAN FORCES COULD ONLY BE USED IF AT ALL IN THE IMPLEMENTATION OF A PEACE AGREEMENT HE SAID OUTRAGED BY LAST WEEKEND'S KILLING OF 68 PEOPLE IN A SARAJEVO MARKET CONGRESSIONAL LEADERS STRONGLY ENDORSED THE IDEA OF NATO AIR STRIKES AT THE SAME TIME CONGRESS AND THE AMERICAN PUBLIC REMAIN ADAMANTLY OPPOSED TO THE IDEA OF SENDING US PEACEKEEPERS TO BOSNIA BUT HAVING DECIDED ONCE AGAIN TO TAKE A MORE ACTIVE ROLE IN BOSNIA MR CLINTON MAY FIND IT HARD TO BACK AWAY FROM HIS EARLIER COMMITMENT TO PROVIDE UP TO HALF OF THE PEACEKEEPERS NEEDED TO ENFORCE A PEACE AGREEMENT THIS IS A QUAGMIRE SAID INDIANA SEN DAN COATS A CONSERVATIVE REPUBLICAN MEMBER ON THE ARMED SERVICES COMMITTEE I THINK WE'RE FORGETTING THE LESSONS OF SOMALIA THERE ARE A LOT OF UNANSWERED QUESTIONS PEACE TALKS ARE SCHEDULED TO RESUME IN GENEVA TODAY AMONG BOSNIA'S SERBS MUSLIMS AND CROATS PRESIDENT CLINTON SAID THE US WOULD NOW TRY TO HELP BROKER A PEACE SETTLEMENT HINTING AT THE POSSIBILITY OF SHUTTLE DIPLOMACY BY US OFFICIALS AS A FIRST STEP HE SAID THE US WOULD TRY TO DETERMINE THE BOSNIAN MUSLIMS' LEGITIMATE BEDROCK REQUIREMENTS AS WELL AS OFFERING THEM A CLEAR AND HONEST ASSESSMENT OF THE COSTS OF CONTINUED FIGHTING MR CLINTON SAID THAT IT WAS NOT EXACTLY TRUE THAT THE US WOULD NOW TRY TO PRESSURE THE MUSLIMS INTO ACCEPTING A PEACE SETTLEMENT US DIPLOMATIC CHALLENGES WON'T END THERE THE ADMINISTRATION HAD TO DO SOME SERIOUS ARMTWISTING TO PERSUADE THE CANADIANS THE GREEKS AND TO A LESSER EXTENT THE BRITISH TO GO ALONG WITH THE PLAN CANADA AND BRITAIN HAVE LARGE PEACEKEEPING CONTINGENTS IN BOSNIA AND IF THEIR TROOPS ARE TARGETED FOR RETALIATION THEY MAY BLAME THE US FOR FORCING THE PLAN ON THEM THE EUROPEANS ALREADY ARE BITTER AT THE US REFUSAL TO SEND GROUND TROOPS TO HELP IN BOSNIA PRESIDENT CLINTON'S MOST IMMEDIATE PROBLEM WILL BE TRYING TO CALM RUSSIAN PRESIDENT BORIS YELTSIN SPURRED ON BY HIS NATIONALIST OPPONENTS MR YELTSIN ACCORDING TO HIS AIDES HAS BEEN TELEPHONING WORLD LEADERS URGING NATO NOT TO ATTACK THE SERBS RUSSIA'S TRADITIONAL ALLIES MR CLINTON SAID LAST EVENING HE WAS TRYING TO GET IN TOUCH WITH THE RUSSIAN LEADER AND HE EXPRESSED HOPE THAT ONCE MR YELTSIN UNDERSTOOD THAT ANYONE WHO VIOLATES THE SAFE ZONE COULD BE PUNISHED HE WILL IF NOT AGREE WITH OUR ACTION AT LEAST UNDERSTAND IT MORE 9402100021 940210 WHO'S NEWS SHARBAUGH TAKES SEARS POST LEAVING ANHEUSERBUSCH BY RICHARD GIBSON AND GREGORY A PATTERSON STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO HIRED THOMAS R SHARBAUGH A SENIOR BEER INDUSTRY MARKETING EXECUTIVE TO BECOME VICE PRESIDENT OF STRATEGIC MARKETING AND ADVERTISING AN IMPORTANT NEW POST AT THE RETAILER MR SHARBAUGH 49 YEARS OLD HAD BEEN VICE PRESIDENTBRAND MANAGEMENT AT ANHEUSERBUSCH COS THE ST LOUISBASED BREWER PROMPTLY NAMED AUGUST A BUSCH IV 29 THE SON OF THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER TO SUCCEED HIM MR BUSCH HAS BEEN VICE PRESIDENT OF THE BUDWEISER BRANDS SINCE 1992 REPORTING TO MR SHARBAUGH AT CHICAGOBASED SEARS MR SHARBAUGH IS EXPECTED TO HELP CHART A NEW ADVERTISING AND MARKETING COURSE AS WELL AS SPRUCE UP SOME BRANDS' IMAGES AND PERHAPS LAUNCH OTHERS THE TASK WILL INCLUDE HELPING SEARS ENHANCE THE IMAGE OF THE PRIVATE LABEL BRANDS IT SELLS AND CONTINUING TO ACQUIRE AND TO PROMOTE NATIONAL BRAND MERCHANDISE AMONG MR SHARBAUGH'S EARLY ASSIGNMENTS IS LIKELY TO BE TO HELP SEARS LAUNCH ITS STARS & STRIPES BRAND FOOTWEAR AND CASUAL CLOTHING WHICH WILL BE AVAILABLE THIS SPRING THE MOVE TO SEARS MARKS A REUNION FOR MR SHARBAUGH AND HIS NEW BOSS JOHN H COSTELLO SENIOR EXECUTIVE VICE PRESIDENT OF MARKETING THE TWO WORKED TOGETHER MORE THAN A DECADE AGO IN CINCINNATI AT PROCTER & GAMBLE CO THOUGH THE TWO MEN KNEW EACH OTHER SEARS SAID IT USED A SEARCH FIRM TO FIND MR SHARBAUGH JUST AS IT HAD TO FIND SEVERAL OTHER EXECUTIVES TO FILL KEY POSTS IN ITS RETAIL OPERATIONS OVER THE PAST YEAR MR COSTELLO HIRED 11 MONTHS AGO BY SEARS IS ONE OF THOSE RELATIVELY RECENT ARRIVALS DESPITE THE RECENT SLIPPAGE OF ANHEUSER'S LINE OF BUDWEISER BEERS MR SHARBAUGH WAS SAID TO BE HIGHLY REGARDED AT THE COMPANY WHICH HAD HOPED TO RETAIN HIM HIS DEPARTURE COMES AT A CRUCIAL TIME THE COMPANY REPORTED EARLIER THIS WEEK THAT IT HAD MANAGED TO HOLD ITS 443 SHARE OF THE US BEER MARKET LAST YEAR BUT IT DID SO PARTLY BY DISCOUNTING BUDWEISER IN CERTAIN AREAS BY PROMOTING SALES OF LOWERPRICED BEERS AND BY INTRODUCING NEW PRODUCTS IN APPARENT RECOGNITION OF THOSE DIFFICULTIES ANHEUSER LAST MONTH SHUFFLED ITS BEERMARKETING OPERATION REASSIGNING THREE EXECUTIVES INCLUDING NEW DIRECTORS OF ITS BUDWEISER AND BUD LIGHT BRANDS MR SHARBAUGH JOINED ANHEUSER IN 1981 AS BUDWEISER GROUP PRODUCT MANAGER HE WAS NAMED VICE PRESIDENT OF BUDWEISER BRANDS IN 1991 AND TO HIS MOST RECENT POST THE NEXT YEAR SO MR BUSCH WHOSE BACKGROUND INCLUDES A BREWMASTER'S DEGREE FROM A GERMAN INSTITUTE FINDS HIMSELF IN A CHALLENGING NEW POSITION IT'S ON HIS SHOULDERS IF HE DOES MAKE IT WORK HE'LL BE A HERO SAID PAINEWEBBER BEVERAGE ANALYST EMANUEL GOLDMAN AS HEAD OF MARKETING AND ADVERTISING FOR THE BUDWEISER BRANDS MR BUSCH HAS LED THE ROLLOUT OF ICE DRAFT BUDWEISER'S LATEST PRODUCT HE ALSO WAS RESPONSIBLE FOR THE DEBUT OF BUD DRY WHICH ANALYSTS SAY HASN'T CAUGHT ON WITH BEER DRINKERS AS THE COMPANY HAD HOPED 9402100020 940210 POLITICS & POLICY KANTOR'S FORMER LAW FIRM WINS TRADE CLIENTS SHOWING PATTERN OF A REVERSE REVOLVING DOOR BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANATT PHELPS PHILLIPS & KANTOR THE DEMOCRATIC POWERHOUSE LAW FIRM DIDN'T REALLY FEEL THE LOSS WHEN IT BECAME MANATT PHELPS & PHILLIPS THAT'S BECAUSE OVER THE PAST YEAR WHILE US TRADE REPRESENTATIVE MICKEY KANTOR HAS NEGOTIATED TRADE DEALS WORTH BILLIONS OF DOLLARS FOR US INDUSTRIES HIS OLD LAW FIRM WHICH DIDN'T HAVE MUCH OF A TRADE PRACTICE BEFORE HAS BEEN BUSILY SIGNING UP NEW TRADE CLIENTS THAT COULD BE WORTH MILLIONS OF DOLLARS TO MANATT PHELPS CALL IT THE REVERSE REVOLVINGDOOR PHENOMENON IN WASHINGTON WHEN LAWYERLOBBYISTS LEAVE HIGHPRESTIGE FEDERAL JOBS THEY OFTEN MAKE A BUNDLE BECAUSE OF THE CONNECTIONS THEY STILL HAVE INSIDE THE GOVERNMENT MANATT PHELPS TAKING A DIFFERENT ROUTE GAINED LUSTER AND NEW TRADE PROFITS IN THE WAKE OF MR KANTOR'S DEPARTURE FOR A BIG GOVERNMENT JOB MANATT PHELPS IS HEADED BY CHARLES MANATT A FORMER DEMOCRATIC PARTY CHAIRMAN WHO HAS LONG EXPLOITED HIS POLITICAL CONTACTS TO BUILD UP THE FIRM'S OFFICES IN LOS ANGELES AND WASHINGTON BUT THE LAW FIRM WAS PRINCIPALLY KNOWN FOR CORPORATE AND ENTERTAINMENT WORK AND HAD JUST A FEW TRADE CLIENTS INCLUDING NEC CORP THE BIG JAPANESE ELECTRONICS COMPANY THAT CHANGED IN DECEMBER JUST AFTER MR KANTOR HAD SEWN UP A VICTORY WITH PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT MANATT PHELPS MAILED OUT EMBOSSED ANNOUNCEMENTS TRUMPETING THE ADDITION OF AN INTERNATIONAL TRADE AND CUSTOMS PRACTICE GROUP WITH TWO NEW PARTNERS THREE NEW ASSOCIATES COUNSEL IN MONTERREY MEXICO AND A SENIOR TRADE CONSULTANT IN MEXICO CITY IT ALSO RAN THE ANNOUNCEMENT IN LEGAL TIMES A WASHINGTON TRADE PUBLICATION FOR LAWYERS AND LOBBYISTS GORDON BAVA MANAGING PARTNER AT THE FIRM'S LOS ANGELES HEADQUARTERS WORRIES THAT THE SUDDEN BURGEONING OF MANATT PHELPS'S TRADE WORK COULD BE MISCONSTRUED AS A CRUDE ATTEMPT TO CAPITALIZE ON OUR RELATIONSHIP WITH MICKEY IT ISN'T HE INSISTS FOR HIS PART MR KANTOR HAS RECUSED HIMSELF FROM DEALING WITH MANATT PHELPS CLIENTS WE ADHERE TO THE LETTER AND DETAIL OF MY RECUSAL LETTER MR KANTOR SAYS IN HIS OFFICE NEAR THE WHITE HOUSE HIS ARMS TIGHTLY FOLDED ACROSS HIM BUT THAT HASN'T STOPPED HIS FORMER PARTNERS FROM TRYING TO GET HIS ATTENTION THE RECUSAL DOESN'T BAR MR KANTOR FROM MEETING WITH CLIENTS THE FIRM HAS SNAGGED SINCE HE LEFT BUT MR KANTOR HAS GONE A STEP FURTHER AND SAID HE WILL MEET WITH THOSE CLIENTS ONLY IF THEY ARE PART OF INDUSTRY COALITIONS MANATT PHELPS USED THIS LOOPHOLE TO GET ONE OF ITS NEW TRADE CLIENTS DOLE FOOD CO IN TO SEE THE TRADE REPRESENTATIVE AFTER MR KANTOR SAID HE WOULDN'T MEET ALONE WITH DOLE TO DISCUSS BANANA ISSUES HE AGREED TO MEET WITH AN INDUSTRY GROUP THAT INCLUDED DOLE ON JUNE 8 HE MET WITH OFFICIALS FROM DOLE CHIQUITA BRANDS INTERNATIONAL INC THE AMERICAN FARM BUREAU FEDERATION AND A GROWERS' ASSOCIATION LAST MONTH JUNE WALTON A PARTNER AT MANATT PHELPS TRIED A DIFFERENT APPROACH SHE CALLED MR KANTOR'S CHIEF OF STAFF THOMAS NIDES TO ASK ABOUT MR KANTOR'S POLICY ABOUT MEETING WITH A NEW MANATT CLIENT SUCH AS VITRO SA A GIANT MEXICAN MANUFACTURER AND DISTRIBUTOR OF GLASS PRODUCTS US RIVAL GUARDIAN INDUSTRIES CORP HAD MET WITH MR KANTOR LAST MAY ALBEIT ON TRADE ISSUES WITH JAPAN VITRO WHOSE 3 BILLION IN ANNUAL SALES RANKS IT AS ONE OF LATIN AMERICA'S BIGGEST COMPANIES IS LOCKED IN A BITTER TRADE DISPUTE WITH US GLASS MAKERS SUCH AS GUARDIAN THE US COMPANIES HAVE BEEN PUSHING MR KANTOR'S OFFICE TO NEGOTIATE A FASTER REDUCTION OF TARIFFS MEXICO IMPOSES ON GLASS IMPORTS MR NIDES TOLD MS WALTON THAT SUCH A MEETING WOULDN'T BE POSSIBLE HE SENT HER A COPY OF MR KANTOR'S RECUSAL STATEMENT AND NOTED IN A LETTER AS YOU CAN SEE FROM POINT NO 3 IT SEEMS THAT MICKEY WILL BE UNABLE TO PERSONALLY MEET WITH THE FIRM IN POINT NO 3 MR KANTOR SAYS HE WON'T HAVE ANY PROFESSIONAL CONTACT WITH MEMBERS OR EMPLOYEES OF MY FORMER LAW FIRM MS WALTON INSISTS SHE WASN'T ASKING FOR A MEETING BUT RATHER INQUIRING GENERALLY ABOUT MR KANTOR'S POLICY MR KANTOR SAYS THAT NOW THAT VITRO IS A MANATT PHELPS CLIENT HE WOULDN'T MEET AGAIN WITH GUARDIAN BASED IN NORTHVILLE MICH SOME MANATT LAWYERS PRIVATELY FRET THAT MR KANTOR'S STRINGENT RECUSAL POLICY COULD IN FACT PUT THEIR CLIENTS AT A DISADVANTAGE IN TERMS OF ACCESS BUT THAT HASN'T STOPPED COMPANIES FROM HIRING THE FIRM IN EARLY 1993 MANATT PHELPS REGISTERED WITH CONGRESS TO LOBBY FOR NEC USA INC A SUBSIDIARY OF NEC IN JUNE IT FILED TO LOBBY FOR DOLE IN CONNECTION WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE GENEVABASED GROUP THAT MONITORS WORLD TRADE IN JULY IT FILED FOR SHARP MANUFACTURING CO OF AMERICA THE US SUBSIDIARY OF JAPANESE ELECTRONICS COMPANY SHARP CORP OVER INTERNATIONAL TRADE LAW AND REGULATION AND THIS PAST OCTOBER COSTA RICA'S AMBASSADOR TO THE US GONZALO FACIO SIGNED HIS COUNTRY ON AS A MANATT PHELPS CLIENT THE LAW FIRM WAS RETAINED TO REPRESENT COSTA RICA ON MATTERS INVOLVING DUTYFREE STATUS UNDER A PROGRAM CALLED THE GENERALIZED SYSTEM OF PREFERENCES FOR AN ESTIMATED FEE OF 10000 TO 20000 MANATT PHELPS SIGNED UP TO DO CONGRESSIONAL WORK FOR VITRO ON NAFTA IN OCTOBER IN NOVEMBER THE FIRM ADDED ROYAL WINE CORP BASED IN NEW YORK TO ITS CLIENT LIST LOBBYING FOR THEM ON TRADE ISSUES AFFECTING THE WINE INDUSTRY ROYAL WINE IS A UNIT OF KEDEM ROYAL WINE CO NONE OF THESE CLIENTS WOULD SPEAK ABOUT THEIR DECISION TO HIRE MANATT PHELPS AND BECAUSE THESE RETAINERS ARE TOO NEW TO SHOW UP IN GOVERNMENT FILINGS IT'S NOT CLEAR HOW MUCH THE FIRM IS BEING PAID TOM PERNICE A DOLE FOOD VICE PRESIDENT DIDN'T RETURN REPEATED CALLS AN OFFICIAL AT SHARP DIDN'T RESPOND TO QUESTIONS MR FACIO AND A ROYAL WINE OFFICIAL DIDN'T RETURN PHONE CALLS THEN IN DECEMBER MANATT PHELPS ADDED A STABLE OF TRADERELATED CLIENTS WHEN IRWIN ALTSCHULER A PARTNER AT ANOTHER WASHINGTON FIRM BROWNSTEIN ZELDMAN & LORE MOVED HIS PRACTICE UPTOWN TO MANATT PHELPS'S SUITE WITH MR ALTSCHULER CAME WORK FOR BIG MEXICAN CLIENTS INCLUDING ADDITIONAL WORK FOR VITRO AND VARIOUS OF ITS SUBSIDIARIES VITROCRISA VVP AMERICA INC A MEMPHIS TENN FABRICATOR AND DISTRIBUTOR OF GLASS PRODUCTS AND ANCHOR GLASS CONTAINER CORP ANOTHER US GLASS MAKER MR ALTSCHULER ALSO BROUGHT ALONG KIMBERLYCLARK DE MEXICO SA THE MEXICAN SUBSIDIARY OF THE US CONSUMERPRODUCTS COMPANY KIMBERLYCLARK CORP MANATT PHELPS HAD SOME TRADE WORK BEFORE NEC ONE OF ITS LARGEST TRADE CLIENTS HAS PAID THE FIRM AT LEAST 178 MILLION SINCE 1987 THE FIRM REPRESENTED THE GOVERNMENT OF CYPRUS UNTIL 1992 COLLECTING AT LEAST 993845 PARTLY FOR TRADE ISSUES AND IT REPRESENTED LA GEAR INC THE LOS ANGELES FOOTWEAR COMPANY ON LEGISLATION AFFECTING FOOTWEAR AND APPAREL IMPORTS THE FIRM'S TIES TO MR KANTOR HAVE ALSO ATTRACTED CONTROVERSY BEFORE IN THE FALL OF 1992 MR MANATT GATHERED CURRENT AND POTENTIAL CLIENTS FOR A PREELECTION BRIEFING IN WHICH MR KANTOR SPOKE ABOUT BILL CLINTON'S ELECTION CAMPAIGN AFTER NEWS REPORTS ABOUT THE BRIEFING WERE PUBLISHED MR KANTOR LOST HIS BID TO BECOME THE CLINTON TRANSITION CHIEF MR KANTOR FEELS THE REPORTS OF HIS ROLE IN THIS AFFAIR WERE MISLEADING AND EVEN NOW HE BRISTLES AT BEING DESCRIBED AS AN EXLOBBYIST MR BAVA SAYS THE FIRM HAS BEEN INTERESTED IN EXPANDING ITS TRADE PRACTICE SINCE 1990 WE'RE NOT OUT TO SELL INFLUENCE HE INSISTS WE'VE ALWAYS BEEN SCRUPULOUS SOURCES LATEST FILINGS AT JUSTICE DEPARTMENT AND SENATE OFFICE OF PUBLIC RECORDS AND JOURNAL INTERVIEWS 9402100019 940210 CBO CHIEF IS DOUBTFUL OF COST CONTROLS UNDER CONSERVATIVE HEALTHCARE PLANS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE TESTIFIED THAT CONSERVATIVE ALTERNATIVES TO PRESIDENT CLINTON'S HEALTHCARE PLAN ARE LIKELY TO BE LESS EFFECTIVE THAN THE PRESIDENT'S PROPOSAL IN CURBING HEALTH COSTS APPEARING BEFORE THE SENATE FINANCE COMMITTEE ROBERT REISCHAUER SHOWED BROAD SKEPTICISM ABOUT THE ABILITY OF PURE MANAGED COMPETITION PROVISIONS TO CURB HEALTH EXPENDITURES WITHOUT STRICT CAPS ON INSURANCE PREMIUMS THE COST OF THE PRESIDENT'S PLAN WOULD BE QUITE A BIT HIGHER THE DIRECTOR SAID HE ADDED THAT HIS OWN GUT FEELING WAS THAT ALTERNATIVE TAXCAP PROVISIONS IN RIVAL PLANS WOULD BE LESS EFFECTIVE THAN THE PRESIDENT'S PROPOSED PREMIUM CAPS IN CONTROLLING COSTS MR REISCHAUER SPECIFICALLY ADDRESSED A BILL SPONSORED BY REP JIM COOPER D TENN AND SEN JOHN BREAUX D LA IT WOULD CAP CORPORATE TAX DEDUCTIONS FOR WORKER HEALTHCARE PLANS IN AN EFFORT TO ENCOURAGE INDUSTRY TO CURB THE COST OF HEALTH BENEFITS THE RESULT WOULD BE A PRETTY HEFTY TAX ON EMPLOYERS THE DIRECTOR SAID BUT HE WASN'T OPTIMISTIC THAT THE BILL WOULD SLOW THE RISE IN HEALTH COSTS WHICH THE CBO ESTIMATES NOW EQUAL 14 OF THE NATIONAL GROSS DOMESTIC PRODUCT AFTER SEN DAVID DURENBERGER R MINN A COSPONSOR OF THE COOPERBREAUX BILL SPOKE OPTIMISTICALLY OF BRINGING COSTS DOWN TO 10 OF GDP FINANCE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY JOKED THAT'S HIS PLAN THAT'S HIS PLAN BEFORE WE HAVE COSTED IT OUT CHIMED IN MR REISCHAUER COMING JUST A DAY AFTER THE RELEASE OF CBO'S ANALYSIS OF THE PRESIDENT'S PLAN MR REISCHAUER'S REMARKS WERE AN IMPLICIT WARNING TO RIVALS THAT THEY TOO WILL FACE TOUGH SCRUTINY WHEN HIS STAFF EVALUATES THEIR PROPOSALS THE COOPERBREAUX SCHEME WOULD BE LESS AMBITIOUS THAN THE CLINTON PLAN BUT A BUDGET OFFICE STUDY OF AN EARLIER VERSION LAST YEAR CONCLUDED THAT THE LAWMAKERS' BILL WOULD ADD MARGINALLY TO RISING HEALTH COSTS IN CONTRAST THE BUDGET OFFICE SAYS THE PRESIDENT'S COSTCONTROLS WOULD SLOW THE RISE IN HEALTH EXPENDITURES THE IMPROVEMENT WOULD BE RELATIVELY MODEST NATIONAL HEALTH EXPENDITURES UNDER THE CLINTON PLAN WOULD RISE TO MORE THAN 2 TRILLION OR 19 OF GDP BY THE YEAR 2004 INSTEAD OF 20 IF NOTHING IS DONE BUT THAT TRANSLATES INTO A SAVINGS OF 150 BILLION THAT YEAR MANY PROPONENTS OF MANAGED COMPETITION SAY THE CBO IS TOO LOCKED INTO SCOREKEEPING AND FAILS TO GIVE CREDIT FOR THE SAVINGS POTENTIAL IN THE NEW APPROACH WE'RE TALKING ABOUT CHANGING BEHAVIOR SAID SEN DURENBERGER AFTER MR REISCHAUER'S TESTIMONY HE'S NEVER MET A MEDICAL MARKET REPUBLICAN CONSERVATIVES HAVE TAKEN A CERTAIN PLEASURE IN THE RISE OF THE COOPERBREAUX ALTERNATIVE LARGELY BECAUSE OF THEIR DESIRE TO BLOODY THE CLINTON PLAN NOW THAT THE PRESIDENT IS PERCEIVED AS WEAKENED THE TONE HAS SHIFTED TO PRESSURE ON REP COOPER TO MOVE TO THE RIGHT A MEMO CIRCULATED YESTERDAY BY PROJECT FOR THE REPUBLICAN FUTURE A NEW REPUBLICAN THINK TANK IS ENTITLED DEFEATING THE COMING CLINTONCOOPER COMPROMISE 9402100018 940210 NOWHERE LAND AN APARTHEID CREATION TRIBAL NATION' WANTS TO REMAIN ON THE MAP REFUSAL BY BOPHUTHATSWANA TO REJOIN SOUTH AFRICA THREATENS APRIL ELECTION ANC SAYS TANKS MAY ROLL BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL MMABATHO SOUTH AFRICA BOP AIR'S MOTTO COULD BE THE AIRLINE THAT'S NEITHER HERE NOR THERE BOPHUTHATSWANA'S FLAG CARRIER CAN'T FLY INTERNATIONAL ROUTES BECAUSE THE WORLD DOESN'T RECOGNIZE ITS HOME COUNTRY SAYING IT IS PART OF SOUTH AFRICA AND BOP AIR CAN'T FLY DOMESTIC ROUTES WITHIN SOUTH AFRICA BECAUSE IT IS CONSIDERED A FOREIGN AIRLINE THAT LEAVES IT FLYING ONLY BETWEEN SOUTH AFRICA AND BOPHUTHATSWANA THIS MAKES OUR LIFE EXTREMELY DIFFICULT COMPLAINS FINANCE MANAGER GLENN ORSMOND WE'RE SQUEEZED ON ALL SIDES BOP AIR'S PREDICAMENT GOES TO THE HEART OF A QUESTION THAT IS BEDEVILING SOUTH AFRICA'S HISTORIC TRANSITION TO BLACK RULE WHERE DOES BOPHUTHATSWANA FIT IN THE NASCENT MULTIRACIAL SOUTH AFRICA TO MANY THE DEMISE OF APARTHEID HAS STRIPPED THE NOMINALLY INDEPENDENT BLACK TRIBAL HOMELAND WHICH IS RECOGNIZED ONLY BY SOUTH AFRICA OF ITS RAISON D'ETRE IF IT EVER HAD ONE BOPHUTHATSWANA PRONOUNCED BOPPOOHTATSWANA BUT COMMONLY CALLED BOP SHOULD BE BOPPED OFF THE WORLD MAP ITS DETRACTORS SAY THESE ARE THE VERY LAST DAYS OF BOPHUTHATSWANA SAYS THABA SEBOKA A LAW PROFESSOR AT THE UNIVERSITY OF BOPHUTHATSWANA IF NOTHING DRAMATIC HAPPENS ITS FATE IS SEALED IT'S BYE BYE BOP BUT DRAMA THERE IS BOPHUTHATSWANA'S AUTOCRATIC PRESIDENT LUCAS MANGOPE IS RESISTING REINCORPORATION DEFYING NOT ONLY SOUTH AFRICA'S LIKELY FUTURE PRESIDENT NELSON MANDELA BUT ALSO IN ALL LIKELIHOOD A MAJORITY OF HIS OWN 23 MILLION CITIZENS WE ARE NOT GOING TO WILLINGLY REVERT TO A SYSTEM WHERE ONCE AGAIN WE WILL BE OPPRESSED AND DEPRIVED BY A FARAWAY GOVERNMENT THE ONLY DIFFERENCE THIS TIME AROUND BEING THE COLOR OF THE SKIN OF THE PEOPLE AT THE TOP MR MANGOPE WHO HAS RULED THE HOMELAND SINCE ITS 1977 INDEPENDENCE SAID RECENTLY WE WANT TO BE RULED BY OUR OWN PEOPLE FOR OUR OWN PEOPLE AS SOUTH AFRICA PREPARES FOR ITS FIRST DEMOCRATIC ELECTIONS APRIL 26 TO APRIL 28 THIS CHALLENGE HIGHLIGHTS HOW THE DISMANTLING OF APARTHEID HAS UNLEASHED A COMPLEX POWER STRUGGLE BETWEEN ETHNIC GROUPS THAT WAS LONG OBSCURED BY THE OVERRIDING ISSUE OF RACE JOINING BOPHUTHATSWANA IN RESISTING SOUTH AFRICA'S NEW CONSTITUTION THE KING OF THE ZULU TRIBE IS REPORTED TO WANT TO SECEDE FROM SOUTH AFRICA AND WHITE SUPREMACISTS ARE THREATENING TOTAL WAR IF THEY DON'T GET AN AUTONOMOUS HOMELAND TALKS INVOLVING THE GOVERNMENT THE AFRICAN NATIONAL CONGRESS AND THE UNHAPPY PARTIES OF THE NEW SOUTH AFRICA BROKE DOWN TUESDAY AND ARE GIVEN LITTLE CHANCE OF RESUMING BEFORE PARTIES ARE TO REGISTER FOR THE BALLOT ON SATURDAY WHILE UNLIKELY TO DERAIL THE ELECTIONS THEMSELVES THE CLASH RAISES SERIOUS DOUBTS OVER HOW FREE THE BALLOT WILL BE AND THREATENS TO TURN WHAT BEGAN AS A NEGOTIATED REVOLUTION INTO A MESSY VIOLENT AFFAIR IT WOULD BE THE ULTIMATE IRONY OF APARTHEID THAT A HOMELAND OSTENSIBLY CREATED TO GIVE BLACKS THE RIGHTS THEY WERE DENIED IN SOUTH AFRICA COULD BE THE SPOILER IN THE COUNTRY'S TRANSITION TO BLACK RULE BUT BY INSISTING ON CONTINUED INDEPENDENCE OR AT THE VERY LEAST BROAD POWERS WITHIN A FEDERAL SOUTH AFRICA MR MANGOPE IS ON A CONFRONTATION COURSE THAT COULD TURN WHAT WAS THE PLAYGROUND OF APARTHEID WHERE WHITES FLOCKED TO TASTE THE DOMESTICALLY FORBIDDEN FRUITS OF GAMBLING AND PORNOGRAPHY INTO A BATTLEGROUND OF THE NEW SOUTH AFRICA IF THE ONLY OPTION LEFT TO US IS TO ROLL IN THE TANKS THEN THAT IS WHAT WE WOULD DO MATTHEW PHOSA THE ANC'S LEGAL ADVISER SAID RECENTLY BOPHUTHATSWANA IS ONE OF THE 10 BLACK TRIBAL HOMELANDS CREATED BY APARTHEID'S ARCHITECTS IN THE HEYDAY OF WHITE SUPREMACY IN A FORM OF ETHNIC CLEANSING SOUTH AFRICA SOUGHT TO CREATE A WHITE MAJORITY BY STRIPPING BLACKS OF THEIR SOUTH AFRICAN CITIZENSHIP RIGHTS AND BENEFITS AND MAKING THEM CITIZENS OF MAKEBELIEVE NATIONS CREATED FOR THEM THROUGH FORCED REMOVALS GERRYMANDERING AND THE REDRAWING OF BORDERS ABOUT 18 MILLION OF SOUTH AFRICA'S 28 MILLION BLACKS WERE PARKED ON THESE RESERVATIONS WHICH REPRESENTED BARELY 15 OF SOUTH AFRICA'S TERRITORY NOW AS APARTHEID GOES MANY FEEL THE HOMELANDS SHOULD GO TOO THEIR CITIZENS RECENTLY REGAINED SOUTH AFRICAN CITIZENSHIP AND PLANS HAVE BEEN DRAWN UP TO SWALLOW THE HOMELANDS IN THE NINE REGIONS THAT WILL COMPRISE THE NEW SOUTH AFRICA THREE OF THE FOUR INDEPENDENT HOMELANDS VENDA CISKEI AND TRANSKEI AND FIVE OF THE SIX SELFGOVERNING ONES WITH THE EXCEPTION OF KWAZULU HAVE AGREED TO REINCORPORATION BOPHUTHATSWANA REFUSES TO GO ALONG SAYING THAT IT IS THE LEGITIMATE HOME OF THE TSWANA PEOPLE AND THAT ITS ECONOMIC GROWTH HAS UPLIFTED BLACKS MORE THAN SOUTH AFRICA WOULD TO PRESS ITS CLAIM THE LAND THAT BASED ITS CASE FOR INDEPENDENCE ON ITS HATRED OF APARTHEID AND HISTORICAL ASPIRATION FOR A TSWANA NATION HAS FORMED THE FREEDOM ALLIANCE WITH WHITE SUPREMACISTS FIGHTING FOR A HOMELAND OF THEIR OWN AND WITH MANGOSUTHU BUTHELEZI THE CHIEF OF THE ZULU TRIBE WHICH OCCUPIED PART OF THE TSWANAS' LAND IN THE 1820S IT'S ALMOST LIKE SLEEPING WITH YOUR ENEMY JUST BECAUSE YOU HAVE COMMON GOALS ADMITS ROSEMARY MANGOPE THE PRESIDENT'S DAUGHTERINLAW AND ONE OF THE COUNTRY'S NEGOTIATORS IN RESISTING JOINING IN THE ELECTIONS BOPHUTHATSWANA APPEARS TO BE TAKING A PAGE OUT OF THE OLD SOUTH AFRICA'S BOOK EVEN AS THE ANC FREELY CAMPAIGNS THROUGH MOST OF SOUTH AFRICA IT IS NOT ALLOWED INTO BOPHUTHATSWANA WHOSE CITIZENS WILL HAVE THE RIGHT TO VOTE IN THE COMING ELECTIONS POLITICAL MEETINGS AND VOTER EDUCATION PROGRAMS ARE ROUTINELY DISRUPTED AND CIVIL SERVANTS SUSPECTED OF ANC MEMBERSHIP ARE FREQUENTLY DISMISSED THE ONLY DIFFERENCE BETWEEN BOPHUTHATSWANA TODAY AND SOUTH AFRICA IN THE 1980S IS THE COLOR OF THE PRESIDENT CHARGES ELIJAH LOETE A LUTHERAN PASTOR IN BOPHUTHATSWANA POPO MOLEFE A MEMBER OF THE ANC'S NATIONAL EXECUTIVE COMMITTEE DISCOVERED THIS WHEN HE TRIED TO CAMPAIGN THERE FIRST STOP ON THE PLANNED TOUR WAS LEEUFONTEIN A VILLAGE THAT WAS ARBITRARILY INCORPORATED INTO BOPHUTHATSWANA IN 1989 AGAINST ITS PEOPLE'S WISHES ARRIVING AT LEEUFONTEIN IN THE MORNING MR MOLEFE FINDS A 400STRONG CROWD GATHERED TO HEAR HIM BUT HE ALSO FINDS ABOUT 30 HEAVILY ARMED POLICEMEN WHO TELL HIM FIRMLY THAT HE SHOULD LEAVE IMMEDIATELY BECAUSE THE ANC IS NOT REGISTERED AS A POLITICAL PARTY A MOVE THE ANC REFUSES TO MAKE BECAUSE IT DOESN'T RECOGNIZE BOPHUTHATSWANA AT HIS REQUEST MR MOLEFE IS TAKEN TO THE POLICE STATION IN NEARBY BRAKLAAGTE TO SEEK PERMISSION TO HOLD THE RALLY MR MOLEFE STATES HIS CASE AS OF JAN 1 THE PEOPLE LIVING IN THIS AREA ARE CONSIDERED FULL CITIZENS OF SOUTH AFRICA HE SAYS WE CAME TO TALK ABOUT THE ANC MANIFESTO ABOUT HOUSING EDUCATION AND HEALTH WE FOUND A POLICE CONTINGENT HEAVILY ARMED PEOPLE ON THE OTHER SIDE HAD NOTHING NOT EVEN STICKS WHY CAN'T PEOPLE MEET IN A COUNTRY THAT SAYS IT'S DEMOCRATIC AND HAS A BILL OF RIGHTS THIS IS A NEW SOUTH AFRICA YOU CAN'T USE OLD METHODS A KAFKAESQUE DIALOGUE ENSUES MR MOLEFE IS TOLD HE HAS NO PERMISSION FOR THE RALLY HE SAYS HE HAS COME TO GET IT THAT HAS TO GO THROUGH INTERNAL AFFAIRS SO CAN HE CALL THE MAN RESPONSIBLE FOR INTERNAL AFFAIRS THE POLICE SAY THEY DON'T HAVE HIS NUMBER AFTER A FEW MORE MINUTES CAPT CYRIL MOSUPYE SAYS THERE'S NO NEED TO PROLONG THIS THE ISSUE IS SHORT AND PRECISE YOU DON'T HAVE PERMISSION TO HOLD THIS MEETING YOU DON'T HAVE ANY OTHER OPTION BUT TO PACK YOUR THINGS AND GO MR MOLEFE COMPLIES TO AVOID A BLOODBATH BUT AS HE CROSSES THE BORDER BETWEEN BOPHUTHATSWANA AND SOUTH AFRICA A MERE SIGNPOST A FINAL SCENE DRIVES HOME HOW OUT OF STEP BOPHUTHATSWANA IS WITH THE COUNTRY THAT SPAWNED IT THE MAN WHO WAS PREVENTED FROM BRINGING THE MESSAGE OF BLACK LIBERATION TO A BLACKRULED COUNTRY STOPS TO SHARE A BARBECUE WITH WHITE SOUTH AFRICAN SOLDIERS LONG BITTER FOES OF THE ANC WHO MAN THE BORDER POST ON A MAP BOPHUTHATSWANA DOESN'T MAKE SENSE THE LAND CONSISTS OF SIX SEPARATE ENCLAVES WITHIN SOUTH AFRICA SO THAT IT'S OFTEN IMPOSSIBLE TO KNOW WHICH COUNTRY ONE IS IN AT NIGHT I WALK MY DOG IN BOPHUTHATSWANA AND GO TO BED IN SOUTH AFRICA SAYS ALWYN VILJOEN A GOVERNMENT SPOKESMAN THE COUNTRY'S APPEARANCE AS A FANTASYLAND IS ENHANCED BY THE EXTRAVAGANT LOST CITY COMPLEX IN SUN CITY WHICH FEATURES A LAGOON WITH ARTIFICIAL WAVES A GOLF COURSE WITH CROCODILES IN THE HAZARDS AND AN AREA THAT TREMBLES IN A SIMULATED EARTHQUAKE BUT BOPHUTHATSWANA CAN POINT TO REAL ACHIEVEMENTS THAT MAKE IT THE ONLY INDEPENDENT HOMELAND THAT ISN'T AN ECONOMIC WRECK ITS MINES PRODUCE NEARLY A THIRD OF THE WORLD'S PLATINUM ITS INDUSTRIAL ZONE ATTRACTS MULTINATIONALS LIKE GERMANY'S BAYERISCHE MOTOREN WERKE AG AND THE HOTELS AND CASINOS OF SOUTH AFRICAN LEISURE GIANT SUN INTERNATIONAL HOTELS LTD BRING IN TOURISM AND TAX REVENUE LOCALLY GENERATED REVENUE PROVIDES ABOUT 80 OF ITS BUDGET AND THE COUNTRY CLAIMS ITS GROWTH RATE OUTPACES MUCH OF AFRICA'S BOPHUTHATSWANA'S HIGHSCHOOL GRADUATION RATE IS NEARLY DOUBLE SOUTH AFRICA'S AND MMABATHO'S MANPOWER CENTER ATTRACTS STUDENTS FROM SOUTH AFRICA SEEKING TO ACQUIRE MARKETABLE TECHNICAL SKILLS THE COUNTRY HAS ACHIEVED A DEGREE OF RACIAL HARMONY AND SOCIAL PEACE THAT STRIKES VISITORS FROM SOUTH AFRICA AND THEN THERE'S MMABATHO ITSELF A SHOWCASE CAPITAL THAT BOASTS A VARIETY OF GLEAMING STRUCTURES INCLUDING A 60000SEAT STADIUM AND A RECORDING STUDIO CONSIDERED ONE OF THE BEST IN THE WORLD OUR PEOPLE CONTINUE TO ENJOY A STANDARD OF LIVING THEIR COUNTERPARTS IN SOUTH AFRICA CAN ONLY MARVEL AT MR MANGOPE BOASTED RECENTLY IT IS TO PRESERVE THIS THAT HE WANTS BOP TO REMAIN INDEPENDENT OR RETAIN CONTROL OF THE REGION'S WEALTH BUT CRITICS SAY BOP'S TRANQUILITY IS ACHIEVED THROUGH CONSTANT HARASSMENT OF OPPONENTS AND LAWS THAT CAN TURN A MEETING BETWEEN TWO PEOPLE INTO AN ILLEGAL GATHERING IN THE LAST ELECTION MR MANGOPE WAS UNOPPOSED HIS CLAIMS OF UPLIFTING THE TSWANA PEOPLE ARE CONTRADICTED BY THE FACT THAT THE BUCK USUALLY STOPS AT A WHITE DESK WHITES HOLD TOP MANAGERIAL POSTS IN VIRTUALLY ALL STATE COMPANIES AND THE HEAD OF THE ARMY IS SOUTH AFRICAN UNEMPLOYMENT OUTSIDE THE CIVIL SERVICE IS MASSIVE AND THOSE EMPLOYED OFTEN WORK IN SOUTH AFRICA AND THEN DOES MMABATHO REALLY NEED A STADIUM THAT CAN SEAT HALF ITS POPULATION OR AN INTERNATIONAL AIRPORT THAT CAN TAKE JETS BOPHUTHATSWANA'S CASE IS FULL OF HOLES ASKS FRANCINE DE CLERCQ A PROFESSOR AT THE UNIVERSITY OF THE WITWATERSRAND IN JOHANNESBURG WHO HAS WRITTEN ON BOPHUTHATSWANA INDEED THE TOWN OF BODIBE ONLY 18 MILES OUTSIDE OF MMABATHO REVEALS A DIFFERENT BOPHUTHATSWANA BODIBE IS A COLLECTION OF BRICK AND ADOBE HOUSES WITHOUT RUNNING WATER ELECTRICITY OR PHONES A MAN NAMED JOSEPH WHO DECLINES TO GIVE HIS LAST NAME LIVES IN A TINY HOUSE WITH HIS WIFE AND FOUR CHILDREN HE SLEEPS ON THE ONE BED WITH TWO OF THE CHILDREN THE OTHER TWO SLEEP ON THE FLOOR WITH HIS WIFE HE HAS BEEN UNEMPLOYED SINCE 1992 WHEN HE GAVE UP A CONSTRUCTION JOB IN SOUTH AFRICA BECAUSE THE PAY WAS TOO LOW TO JUSTIFY THE LONG COMMUTE LEAVING AT 530 AM JOSEPH LAUGHS WHEN ASKED WHETHER BOPHUTHATSWANA OFFERS HIM BETTER OPPORTUNITIES THAN SOUTH AFRICA WHAT OPPORTUNITIES HE ASKS LOOK FOR YOURSELF IT'S A MESS AT A NEIGHBORING HOUSE A GROUP OF 20 PEOPLE SIT DOWN TO DISCUSS THEIR LIVES OF THE 20 THREE HAVE JOBS ALL IN SOUTH AFRICA WHEN MANGOPE SAYS WE'RE INDEPENDENT AND WELL OFF HE'S REFERRING TO HIMSELF AND HIS FRIENDS SAYS ONE ALL THOSE INTERVIEWED SAY THEY WANTED TO REJOIN SOUTH AFRICA BUT COMPLAIN OF HARASSMENT AS THEIR VISITORS LEAVE POLICE CARS ARE SEEN ENTERING THE VILLAGE MANY BELIEVE MR MANGOPE EVENTUALLY WILL HAVE TO GIVE IN BECAUSE THE CHANGE IN SOUTH AFRICA'S GOVERNMENT WILL DEPRIVE HIM OF HIS ONLY ALLY AN ALLY WHOSE ARMY RESTORED HIM TO POWER IN 1988 WHEN HE WAS BRIEFLY TOPPLED IN A COUP ALREADY SOUTH AFRICA'S TRANSITIONAL EXECUTIVE COUNCIL A MULTIRACIAL ADVISORY BODY IS TIGHTENING THE SCREWS SUSPENDING A 635 MILLION LOAN BY THE SOUTH AFRICAN DEVELOPMENT BANK TO BOPHUTHATSWANA UNTIL FREE POLITICAL ACTIVITY IS ALLOWED IF THAT IS NOT ENOUGH ANC AND GOVERNMENT OFFICIALS SAY SOUTH AFRICA COULD CUT OFF POWER AND WATER AND SUSPEND FINANCIAL TRANSFERS SOME OFFICIALS OF BOPHUTHATSWANA SPEAK OF RETALIATING BY WITHHOLDING SUPPLIES FROM THE MINES BUT FINANCE MINISTER MARTIN VAN DEN BERG A SOUTH AFRICAN CITIZEN ADMITS IF THEY'RE WILLING TO CUT ELECTRICITY TERMINATE THE CUSTOMS UNION AND 10 OTHER STEPS I CAN THINK OF THEY COULD BRING BOPHUTHATSWANA TO ITS KNEES ECONOMICALLY AND FINANCIALLY WITHIN SIX MONTHS AND EVEN IF MR MANGOPE'S DEFIANCE IS SIMPLY A NEGOTIATING PLOY TO OBTAIN GREATER REGIONAL POWERS IN THE HOPES OF CONTINUING TO PLAY A ROLE WITHIN SOUTH AFRICA THAT MOVE COULD BACKFIRE TOO SOUTH AFRICAN POLLS SHOW THE ANC COULD GET 74 OF THE VOTE IN THE REGION THAT WOULD SWALLOW BOPHUTHATSWANA JACOB BUTI MALEFYE A 46YEAROLD RESIDENT OF THE TOWN OF PHOKENG EXPLAINS WHY I WOKE UP ONE MORNING AND WITHOUT MOVING ANYWHERE I WAS TOLD I WAS IN BOPHUTHATSWANA AND HAD A NEW PRESIDENT HE SAYS I WANT TO WAKE UP ONE MORNING AND BE BACK IN MY OWN COUNTRY 9402100017 940210 LAW LEGAL BEAT LEGAL AID FUNDING STILL A CONCERN DESPITE CLINTON'S BUDGET PROPOSAL BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S BUDGET PROPOSAL OFFERS A BIG BOOST TO LEGAL SERVICES FOR THE POOR BUT EVEN THE 25 INCREASE SOUGHT BY THE PRESIDENT WOULDN'T RESTORE THE LEVEL OF SERVICES THE PROGRAM PROVIDED IN THE LATE 1970S THE LEGAL SERVICES CORP WHICH DISTRIBUTES FEDERAL MONEY TO LOCAL POVERTYLAW AGENCIES CAME UNDER HEAVY FIRE DURING THE 1980S REPUBLICAN OFFICIALS CRITICIZED LEGALAID LAWYERS FOR CROWDING THE DOCKETS WITH CLASSACTION LAWSUITS AND FOR SUPPORTING LIBERAL CAUSES SUCH AS PUBLIC FUNDING FOR ABORTION AND GAY RIGHTS THE REAGAN ADMINISTRATION THOUGH UNSUCCESSFUL IN EFFORTS TO ELIMINATE THE LSC ALTOGETHER SUBSTANTIALLY CUT ITS BUDGET SINCE 1982 LOCAL LEGALAID PROGRAMS HAVE BEEN ABLE TO REPLACE SOME OF THE LOST FEDERAL FUNDS THROUGH FOUNDATION GRANTS AND ASSISTANCE FROM THE PRIVATE BAR BUT MANY OF THOSE OUTSIDE FUNDS HAVE DRIED UP DURING THE RECENT RECESSION LEAVING MANY PROGRAMS STRAPPED ONCE AGAIN IT HELPED CUSHION THE BLOW BUT IT DIDN'T MAKE UP FOR THE LOSS SAYS LINDA PERLE A LAWYER FOR THE CENTER FOR LAW AND SOCIAL POLICY AN ADVOCACY GROUP FOR LEGALAID SOCIETIES THE PRESIDENT AND HILLARY RODHAM CLINTON HAVE LONG BEEN ADVOCATES OF IMPROVING LEGAL SERVICES FOR THE POOR AND MRS CLINTON HERSELF WAS CHAIRMAN OF THE LSC DURING THE 1970S LAST YEAR CONGRESS INCREASED THE LSC BUDGET BY 43 MILLION AFTER PRESIDENT CLINTON REQUESTED 75 MILLION IN NEW FUNDS BUT EVEN IF CONGRESS APPROVED THE NEW CLINTON PROPOSAL WHICH WOULD RAISE THE LSC'S BUDGET TO 500 MILLION THE PROGRAM WOULDN'T HAVE NEARLY THE SPENDING POWER IT EXERCISED MORE THAN 10 YEARS AGO IT WILL STILL ONLY ENABLE THE PROGRAM TO REACH A FRACTION OF THE PEOPLE IN NEED SAID DOUGLAS EAKELEY THE RECENTLY APPOINTED CHAIRMAN OF THE LSC'S BOARD OF DIRECTORS UNDER THE PRESIDENT'S CURRENT PROPOSAL THE VAST MAJORITY OF THE LSC'S FUNDING WOULD BE USED FOR LOCAL LEGALAID PROGRAMS THAT TYPICALLY ASSIST PEOPLE WITH EVICTION DIVORCE OR CONSUMERFRAUD CASES THE PROPOSAL ALSO INCLUDES SIGNIFICANT FUNDING FOR LEGAL ASSISTANCE TO NATIVE AMERICANS AND MIGRANT FARM WORKERS AND FOR THE FIRST TIME WOULD DIRECTLY ALLOCATE MONEY TO AID PEOPLE IN MENTALHEALTH INSTITUTIONS BUT DESPITE THE FUNDING INCREASE LEGAL SERVICES' LAWYERS WILL CONTINUE TO OPERATE UNDER RESTRICTIONS ENACTED BY CONGRESS IN THE 1980 TO REMOVE SUCH LAWYERS FROM ADVOCACY ROLES IN LEGISLATIVE MATTERS AND TO BAR THEM FROM HANDLING ABORTION CASES AND CERTAIN MATTERS INVOLVING ILLEGAL ALIENS THE LIMITS WILL CONTINUE UNLESS CONGRESS CHANGES THE LAW PROSECUTORS CAN'T ASK BROADLY FOR ALL COMPUTER FILES OF A COMPANY UNDER CRIMINAL INVESTIGATION BUT MUST NARROW THE REQUEST TO SPECIFIC CATEGORIES OF DOCUMENTS USING A KEY WORD SEARCH A FEDERAL COURT HAS RULED THE DECISION INVOLVED A GRAND JURY SUBPOENA IN A SECURITIES TRADING INVESTIGATION BY FEDERAL PROSECUTORS IN NEW YORK INVOLVING AN UNIDENTIFIED CORPORATION NO FURTHER INFORMATION INCLUDING THE NAMES OF THE LAWYERS ON EITHER SIDE WAS GIVEN IN ORDER TO MAINTAIN GRAND JURY SECRECY THE SUBPOENA REQUESTED THE CENTRAL PROCESSING UNIT INCLUDING THE HARDDISK DRIVE OF ANY COMPUTER SUPPLIED BY THE COMPANY FOR THE USE OF SPECIFIC OFFICERS AND EMPLOYEES AND ALL COMPUTERACCESSIBLE DATA INCLUDING FLOPPY DISKETTES BUT US DISTRICT JUDGE MICHAEL B MUKASEY OF NEW YORK AGREED WITH THE CORPORATION THAT THE REQUEST WAS TOO BROAD AND WOULD LIKELY PRODUCE TOO MANY IRRELEVANT DOCUMENTS IN VIOLATION OF THE FEDERAL RULES OF CRIMINAL PROCEDURE THE GOVERNMENT ITSELF HAD ACKNOWLEDGED THAT A NARROWER KEY WORD SEARCH WOULD UNCOVER THE NEEDED DOCUMENTS THE JUDGE ADDED THAT IF THERE WAS REASON TO SUSPECT THAT CERTAIN DOCUMENTS WERE BEING WITHHELD IMPROPERLY A COURTAPPOINTED EXPERT COULD SEARCH THE HARD DRIVES AND FLOPPY DISKS IT IS EASIER IN THE COMPUTER AGE TO SEPARATE RELEVANT FROM IRRELEVANT DOCUMENTS HE WROTE MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402100016 940210 COURT DECIDES NEW YORK MAY ADOPT CLEANAIR RULES FOUGHT BY CAR MAKERS BY OSCAR SURIS AND MARGARET A JACOBS STAFF REPORTERS OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT UPHELD THE STATE OF NEW YORK'S RIGHT TO ADOPT CALIFORNIA'S PROGRAM FOR CUTTING VEHICLE EMISSIONS INCLUDING A MANDATE FOR ZEROEMISSION VEHICLES OR ELECTRIC CARS THE RULING AMOUNTS TO ANOTHER DEFEAT FOR THE AUTO INDUSTRY WHICH HAS BEEN FIGHTING THE SPREAD TO THE NORTHEAST OF STRICTER CLEANAIR REGULATIONS THAN THOSE SET BY THE FEDERAL GOVERNMENT SPECIFICALLY THE SECOND CIRCUIT US COURT OF APPEALS RULED THAT THE 1990 AMENDMENTS TO THE FEDERAL CLEAN AIR ACT GIVE NEW YORK THE AUTHORITY TO ADOPT CALIFORNIA'S PROGRAM IN ITS ENTIRETY THE DECISION IS LIKELY TO ADD MOMENTUM TO A PETITION THAT 12 NORTHEAST STATES INCLUDING NEW YORK AND WASHINGTON DC HAVE FILED WITH THE ENVIRONMENTAL PROTECTION AGENCY CALLING FOR SIMILAR REGULATIONS TO BE APPLIED TO THE ENTIRE NORTHEAST THE RULING REMOVES ANY LEGAL CLOUD OF UNCERTAINTY FROM THE REGIONAL EFFORT SAID THOMAS JORLING NEW YORK'S COMMISSIONER OF ENVIRONMENTAL CONSERVATION I HOPE THAT THE AUTO INDUSTRY WILL NOW GET ON WITH THE JOB OF BUILDING CARS THAT ARE IN ACCORD WITH THIS PROGRAM THE RULING CRITICIZED THE AUTO MAKERS' RESISTANCE TO THE CALIFORNIA PROGRAM'S REQUIREMENT THAT THE INDUSTRY SELL ZEROEMISSION VEHICLES SUCH AS ELECTRIC CARS BY 1998 THE INDUSTRY LED BY DETROIT'S BIG THREE HAS ARGUED THAT ELECTRIC VEHICLES WON'T MEET MOST CUSTOMER NEEDS BEFORE THE TURN OF THE CENTURY BECAUSE OF TECHNOLOGICAL SHORTCOMINGS THE COURT HOWEVER COMPARED THAT VIEW TO THE BELIEF HELD BY SOME PEOPLE A CENTURY AGO THAT ANYTHING THAT EVER COULD BE INVENTED HAD ALREADY BEEN INVENTED THE AUTO MAKERS DID SCORE A SMALL VICTORY NEW YORK WILL HAVE TO WAIT UNTIL THE AUTO INDUSTRY'S 1996 MODEL YEAR BEFORE IT CAN IMPLEMENT THE FIRST PHASE OF THE STRINGENT CALIFORNIASTYLE PROGRAM THE RULING DIDN'T ADDRESS WHAT KIND OF FUELS WOULD HAVE TO BE USED UNDER THAT PROGRAM IN NEW YORK THE RULING IS A SETBACK FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION THE BIG THREE LOBBY THAT CHALLENGED NEW YORK'S RIGHT TO ADOPT THE CALIFORNIA REGULATIONS IT HAD ATTEMPTED TO SELL AN ALTERNATIVE EMISSIONSREDUCTION PROGRAM FOR THE NORTHEAST BUT IT ULTIMATELY FAILED TO GARNER WIDESPREAD SUPPORT AN OFFICIALS FOR THE AAMA HAD NO IMMEDIATE COMMENT THE RULING ALSO MAY INFLUENCE A SEPARATE CASE IN MASSACHUSETTS WHERE THE AAMA IS FIGHTING TO KEEP THE CALIFORNIA EMISSIONSREDUCTION PROGRAM FROM GOING INTO EFFECT NEXT YEAR 9402100015 940210 NIPPON STEEL'S INDONESIA PROJECT TOKYO JAPAN'S NIPPON STEEL CORP WILL SET UP AN ASSEMBLY FACILITY AND A SHIPPING TERMINAL FOR STEEL MARINE STRUCTURES IN INDONESIA'S BATAM ISLAND NEAR SINGAPORE TO MEET GROWING REGIONAL DEMAND FOR OFFSHORE RESOURCEDEVELOPMENT EQUIPMENT THE PROJECT WILL BE PUT INTO OPERATION BY THE END OF 1996 A COMPANY SPOKESMAN SAID HE DIDN'T DISCLOSE THE SIZE OF THE INVESTMENT 9402100014 940210 TELEVISON GOING TUBELESS SOME FAMILIES FLOURISH WITHOUT TV BY ELLEN GRAHAM STAFF REPORTER OF THE WALL STREET JOURNAL THEY ARE CULTURAL ODDITIES BARNEYLESS TODDLERS TEENS WITHOUT MTV GROWN MEN WHO SPURN THE SUPER BOWL BUT FOR THE RELATIVE HANDFUL OF AMERICAN FAMILIES WHO UNPLUG FOR GOOD LIFE AFTER TELEVISION GOES ON QUITE HAPPILY AT THAT DEBORAH FELDMAN OF HIGHLAND MD MADE THE DECISION 10 YEARS AGO WHEN SHE WAS NURSING HER INFANT DAUGHTER IN FRONT OF THE TV SHE SAYS RACHEL WOULD WHIP HER HEAD AWAY FROM ME AND STARE FIXATED AT THE SCREEN WE FIGURED IF SHE WAS DOING IT AT THAT AGE WHAT WOULD SHE DO WHEN SHE GOT OLDER FOR RICHARD MENDEZ A FATHER OF SIX IN OAKHURST CALIF THE FLASH POINT CAME ON A SATURDAY THREE YEARS AGO I TURNED ON THE SET IN THE EARLY MORNING AND THAT NIGHT REALIZED I'D LOST MAYBE 14 HOURS WATCHING SPORTS IT HIT ME BETWEEN THE EYES I WAS THE PROBLEM NOT MY KIDS HELEN FRENCH OF NEW PRESTON CONN SIMPLY GREW WEARY OF NEGOTIATING WITH HER CHILDREN WE MADE DEALS AND SCHEDULES THE RULES KEPT CHANGING AND BENDING IT BECAME SUCH A POWER STRUGGLE THAT IT WAS EASIER NOT TO HAVE IT IN MANY HOUSEHOLDS THE RISING PUBLIC CLAMOR OVER TELEVISED SEX AND VIOLENCE HAS ONLY INTENSIFIED LONGSTANDING LIVINGROOM SKIRMISHES OVER HOW MUCH AND WHAT CHILDREN WATCH STILL FEW PARENTS HAVE TAKEN TO HEART THE BROADCASTING INDUSTRY'S STANDARD ANSWER TO ITS CRITICS IF YOU DON'T LIKE WHAT'S ON TELEVISION TURN IT OFF THOSE WITH THE SPINE TO BAN OR STRINGENTLY RESTRICT TV ATTEST TO THE TRIBULATIONS OF WHAT SOME CALL DETOXIFICATION MOST NOTABLY TESTY CHILDREN AT LOOSE ENDS BUT EVEN THEIR CHILDREN SAY THAT BEING MEDIAIMPOVERISHED HAS ITS COMPENSATIONS FOR ABOUT A MONTH AFTER THE SET WENT DARK AT HER HOUSE CHARIS MENDEZ NOW 17 YEARS OLD RECALLS IT WAS TERRIBLE I HATED IT SHE AND HER SIBLINGS SCHEMED TO GET THE CABLE COMPANY TO RECONNECT THEM TO NO AVAIL THEN SHE SAYS AFTER A WHILE WE ALL KIND OF GOT USED TO IT CHARIS WHO HAD CLOCKED SIX HOURS A DAY IN FRONT OF TV THUMBING THROUGH MAGAZINES I JUST LOOKED AT THEM I NEVER READ THEM DISCOVERED BOOKS PLAYING THE SAXOPHONE AND LISTENING TO JAZZ ESPECIALLY BILLIE HOLIDAY WHOSE BIOGRAPHY SHE TRACKED DOWN AT THE LIBRARY THERE WAS MORE TIME FOR CONVERSATION AT HOME BEFORE IT WAS LIKE MOSTLY WE'D SEE DAD BEFORE HE LEFT FOR WORK WHEN HE CAME HOME HE'D WATCH TV WITH US AND THEN IT WAS LIKE GOODNIGHT DAD' NOW WE TALK ALL THE TIME WE'RE REALLY CLOSE AND CHARIS WHO TWO YEARS AGO WAS FAILING FOUR OF HER SEVEN CLASSES TODAY HAS A B AVERAGE WHEN I HAVE A FAMILY I'M NOT GOING TO HAVE TV SHE SAYS AFTER HER FLEETING FIXATION WITH TV AS A BABY 10YEAROLD RACHEL FELDMAN IS FLOURISHING WITHOUT IT IT IS SOMETIMES DIFFICULT SHE ADMITS WHEN HER FRIENDS NATTER ON ABOUT TV SHOWS SHE HAS NEVER SEEN BUT SHE SAYS I HAVE BETTER THINGS TO DO THAN SIT AROUND WATCHING A BOX SHE READS A BOOK A DAY PLAYS OUTSIDE IS ACTIVE IN DRAMA AND CHORUS AT SCHOOL AND BRINGS HOME STRAIGHT A'S WHEN RACHEL AND HER FIVEYEAROLD SISTER LEAH VISIT THEIR GRANDPARENTS TWO WEEKS EVERY YEAR THEY GET THEIR ANNUAL TV FIX THOUGH RACHEL SAYS IT MAKES MY HEAD HURT AND GETS BORING RESEARCH COMPARING TVFREE KIDS WITH HEAVY VIEWERS IS SCARCE PARTLY BECAUSE EXPOSURE TO TELEVISION IS SO PERVASIVE ONE STUDY OF A REMOTE TOWN IN THE CANADIAN ROCKIES BEFORE AND AFTER TV ARRIVED IN THE MID1970S SHOWED A DECLINE IN CHILDREN'S STANDARDIZED TEST SCORES WITHIN TWO YEARS BUT A US EDUCATION DEPARTMENTFUNDED REVIEW OF SCIENTIFIC LITERATURE A FEW YEARS AGO CONCLUDED THAT TV HABITS HAD LITTLE EFFECT ON CHILDREN'S COGNITIVE DEVELOPMENT OR SCHOOL PERFORMANCE THIS MEDIUM IS HERE TO STAY SAYS JOHN C WRIGHT CODIRECTOR OF THE UNIVERSITY OF KANSAS' CENTER FOR RESEARCH ON THE INFLUENCES OF TELEVISION ON CHILDREN KIDS ARE GOING TO PROCESS INFORMATION MORE AND MORE FROM SCREENS AND LESS FROM PAPER TO THINK YOU ARE DOING YOUR CHILD A FAVOR BY MAKING HIM CHERISH THE OLD THINGS TO THE EXCLUSION OF THINGS HE'LL REALLY NEED IS INCOMPLETE PARENTING FOR BETTER OR WORSE KIDS RAISED WITHOUT TELEVISION DO SPEND THEIR TIME DIFFERENTLY THAN THEIR MEDIASATURATED PEERS BECKIE MCNEILL HELEN FRENCH'S 14YEAROLD DAUGHTER ADMITS THAT SHE ONCE HAD FRIENDS GIVE HER TELEPHONE PLAYBYPLAYS OF BEVERLY HILLS 90210 BUT SHE HAS NOTICED THAT WHEN SHE VISITS FRIENDS' HOUSES THEY FIRST ASK WHAT DO YOU WANT TO WATCH SHE REPLIES POINTEDLY YOU MEAN WHAT DO I WANT TO DO HER FRIENDS JOIN HER HIKING OR SKATING SHE SAYS BUT THEY ALWAYS THINK FIRST OF TV SUCH OBSERVATIONS COME AS NO SURPRISE TO CHICAGO PUBLICRELATIONS CONSULTANT SUZANNE SHELTONFOLEY WHOSE SEVENYEAROLD TWINS ARE ENROLLED AT THE PRIVATE CHICAGO WALDORF SCHOOL WHICH DISCOURAGES TELEVISION VIEWING WHEN THEY BEGAN PRESCHOOL ELIZABETH AND BUCKLIN DIDN'T WATCH TV ON SCHOOL DAYS MS SHELTONFOLEY SAYS THAT SHE AND HER VIDEOPRODUCER HUSBAND NOTICED THAT ON DAYS WHEN TV WAS PERMITTED THE TWINS WERE MORE QUARRELSOME AND LESS INTERESTED IN CREATIVE PLAY I REALLY DIDN'T WANT TO BELIEVE IT MS SHELTONFOLEY SAYS IT'S SO MUCH EASIER JUST TO TURN ON THE TV WHEN YOU NEED TO MAKE DINNER BUT THE BEHAVIOR CHANGES WERE SO MARKED SHE SAYS THAT THE RULE SOON BECAME NO TV AFTER INITIAL PROTESTS THE TWINS GAVE UP ASKING TO WATCH TV SAYS THEIR MOTHER IT DIDN'T TAKE LONG WE JUST GAVE THEM A ZILLION OTHER THINGS TO DO AT THE WALDORF SCHOOL WHERE MOST CHILDREN ARE TVFREE TEACHERS SAY HEAVY VIEWERS STAND OUT IF YOU SEE KINDERGARTENERS PLAYING SUPERHEROES AND PRETENDING TO KILL AND SLICE AND HURT IT'S A DEAD GIVEAWAY SAYS JOAN INGLE A THERAPIST AT THE SCHOOL NOT ONLY DO TV AND VIDEO GAMES ENCOURAGE AGGRESSIVE BEHAVIOR SHE ARGUES THEY TEND TO IMPAIR A CHILD'S MEMORY ATTENTION SPAN AND IMAGINATION ONE WHO HAS WITNESSED LOTS OF TVCONDITIONED KIDS IS PROFESSIONAL STORYTELLER ODDS BODKIN WHO PERFORMS BEFORE SOME 10000 PEOPLE A YEAR MOST OF THEM CHILDREN LIKE CLOCKWORK AFTER SEVEN MINUTES A RIPPLE GOES THROUGH THE CROWD HE SAYS THEIR INNER CLOCKS EXPECT A COMMERCIAL THAT'S HIS CUE TO STEP UP THE STORY'S PACE WITH MUSIC OR ONE OF HIS 100 CHARACTER VOICES HE SAYS MR BODKIN WHO LIVES IN BRADFORD NH RESTRICTS HIS THREE YOUNG SONS' TV WATCHING TO WEEKENDS PARENTS SAY IT BECOMES HARDER TO KEEP TV AT BAY ONCE CHILDREN REACH EARLY ADOLESCENCE JAY VOSS OF CHICAGO SAYS HE HAS BEGUN TO EASE UP ON HIS 13YEAROLD SON HARTLEY'S TV RESTRICTIONS TEENAGERS NEED EXPOSURE TO MASS CULTURE SO THEY CAN FORM THEIR OWN CONCLUSIONS HE SAYS HARTLEY AND HIS FRIENDS WATCH SATURDAY NIGHT LIVE AND MIMIC THE JOKES AND IF HE DOESN'T WATCH MR VOSS SAYS HE'S THE ODD GUY OUT BUT HARTLEY'S SISTERS AGED 10 AND FIVE AREN'T INTERESTED IN TV AND DON'T WATCH NELL SPEKMAN OF NEW YORK CITY HAS REACHED THE AGE OF 16 WITHOUT SUCCUMBING TO THE TV HABIT WHEN SHE WAS A BABY HER FAMILY'S SET BURNED OUT AND WAS NEVER REPLACED THOUGH FRIENDS WONDER HOW SHE FILLS HER SPARE TIME NELL SAYS SHE IS RARELY BORED INSTEAD OF WATCHING SITCOMS SHE SAYS HER FAMILY OFTEN READS ALOUD WE WENT THROUGH THE TOLKIEN TRILOGY AND SHERLOCK HOLMES SHE SAYS IT BROUGHT OUR FAMILY TOGETHER STILL OPTING OUT OF THE CULTURAL MAINSTREAM REQUIRES A THICK SKIN AFTER SUZANNE SHELTONFOLEY JOINED A HEALTH CLUB SHE ASKED THAT THE TV BE TURNED OFF WHEN SHE LEFT HER CHILDREN AT THE CLUB'S NURSERY IT WAS SURE NO PROBLEM' AND AS SOON AS MY CHECK CLEARED I WAS A LUNATIC SHE RECALLS SHE STOPPED TAKING HER CHILDREN THERE WHEN ANN POTTS PROPOSED A TVFREE WEEK LAST YEAR AT POINTERS RUN ELEMENTARY SCHOOL IN CLARKSVILLE MD SHE SAYS IT WAS NOT AN EASY IDEA TO SELL TO PARENTTEACHER ASSOCIATION BOARD MEMBERS WHO INITIALLY FRETTED ABOUT MISSING FAVORITE SHOWS BUT MORE THAN 70 OF THE SCHOOL'S 400 STUDENTS COMPLIED WITH THE BLACKOUT AND SINCE THEN MS POTTS SAYS MANY PARENTS REPORT THAT VIEWING IN THEIR HOMES IS DOWN EXPERIMENTS LIKE THE ONE AT POINTERS RUN ARE SPRINGING UP WITH INCREASING FREQUENCY AFTERWARD PARENTS AND TEACHERS CONSISTENTLY REPORT BETTER HOMEWORK IMPROVED FAMILY RELATIONS AND OTHER POSITIVE RESULTS ACCORDING TO MARIE WINN AUTHOR OF THE PLUGIN DRUG A BOOK ABOUT TV ADDICTION IN CHILDREN FAMILIES ARE OFTEN EUPHORIC ABOUT HOW WONDERFUL IT WAS SHE SAYS BUT THEN THEY SHEEPISHLY TURN THE TV BACK ON AND LOOK BACK ON THEIR TIME WITHOUT IT AS AN OASIS IN THE DESERT 9402100013 940210 WHO'S NEWS US LONG DISTANCE'S FINANCIAL CHIEF QUITS AMID AN SEC INQUIRY SAN ANTONIO US LONG DISTANCE CORP'S CHIEF FINANCIAL OFFICER RESIGNED AMID A SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING STEPHEN DEATON 47 YEARS OLD LEFT HIS POSTS AS CFO AND SENIOR VICE PRESIDENT AFTER ONLY SEVEN WEEKS ON THE JOB PARRIS H HOLMES JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS COMPANY SAID THE RESIGNATION IS TOTALLY UNRELATED TO THE SEC'S INFORMAL INQUIRY IN AN INTERVIEW MR DEATON DECLINED TO SAY WHETHER HIS RESIGNATION WAS LINKED TO THE SEC PROBE MR DEATON PREVIOUSLY CHIEF FINANCIAL OFFICER FOR A DALLAS VENTURECAPITAL FIRM HAD BEEN NAMED TO THE POSTS DEC 20 FIVE DAYS AFTER THE PROBE WAS DISCLOSED HIS PREDECESSOR MARK BUCKNER HAD RESIGNED LAST AUGUST THE COMPANY WHICH SAYS IT IS COOPERATING IN THE INVESTIGATION MAINTAINS THAT ITS FINANCIAL STATEMENTS ARE FAIRLY STATED MR DEATON'S DEPARTURE FOLLOWS BY EIGHT DAYS THAT OF CHARLES P JOHNSON AN EXECUTIVE VICE PRESIDENT IN CHARGE OF THE COMPANY'S DIRECTDIALING AND OPERATORASSISTED OPERATIONS WHO RESIGNED FEB TWO WEEKS AGO US LONG DISTANCE SAID IT EXPECTS TO REPORT A LOSS FOR ITS FIRST QUARTER IN PART BECAUSE OF ACCOUNTING AND LEGAL COSTS RELATED TO THE INQUIRY WHICH INVOLVES HOW THE COMPANY ACCOUNTS FOR CERTAIN RECEIVABLES AT THAT TIME THE COMPANY ALSO CANCELED A PLANNED OFFERING OF 16 MILLION SHARES THOUGH PREVIOUSLY IT HAD CITED THE SEC INQUIRY IN DELAYING THE OFFERING US LONG DISTANCE SAID THAT ITS DECISION TO CANCEL THE OFFERING WASN'T CONNECTED TO THE INQUIRY US LONG DISTANCE SAID IT IS SEARCHING FOR A SUCCESSOR TO MR DEATON 9402100012 940210 WHO'S NEWS CWE INC CWE INC DENVER GREGORY PUSEY WAS NAMED A DIRECTOR OF THIS MARKETER OF COMPUTER EQUIPMENT FILLING A VACANCY MR PUSEY 41 YEARS OLD IS PRESIDENT OF CAMBRIDGE HOLDINGS LTD A REALESTATE CONCERN 9402100011 940210 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK GERARD F CORBETT 43 YEARS OLD WAS NAMED VICE PRESIDENT OF COMMUNICATIONS FOR THIS MAKER OF DEFENSE ELECTRONICS THE POSITION HAD BEEN VACANT SINCE LAST YEAR MR CORBETT HAD SERVED PREVIOUSLY AS DIRECTOR OF CORPORATE COMMUNCIATIONS FOR METALS PRODUCER ASARCO INC 9402100010 940210 WHO'S NEWS WESTERN MICRO TECHNOLOGY INC WESTERN MICRO TECHNOLOGY INC SARATOGA CALIF THIS ELECTRONICDISTRIBUTION CONCERN CREATED AN OFFICE OF THE PRESIDENT TO BE FILLED BY NANCY ANGELI 35 YEARS OLD CHIEF FINANCIAL OFFICER GLEN BALZER 49 PRESIDENT OF THE COMPONENTS DIVISION AND SCOTT MUNRO 37 PRESIDENT OF THE SYSTEMS DIVISION MARSHALL G COX PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED BUT HE REMAINS CHAIRMAN 9402100009 940210 INTERNATIONAL AIR CANADA AGREES TO LEASING DEAL FOR SIX AIRBUS JETS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS AIRBUS INDUSTRIE SECURED AN ORDER FOR SIX OF ITS TOPOFTHELINE A340 JETLINERS ALTHOUGH NEITHER THE BUYER AIR CANADA NOR THE MANUFACTURER DISCLOSED THE VALUE OF THE DEAL THE A340 LISTS FOR 1215 MILLION WITHOUT SPARE PARTS OR TRAINING THAT WOULD MEAN A TOTAL OF ABOUT 729 MILLION AIR CANADA WON'T BE PUTTING UP THE MONEY ITSELF INSTEAD THE FINANCING IS BEING ARRANGED BY AN UNDISCLOSED THIRD PARTY WITH AIR CANADA TAKING OVER THE PLANES ON A LONGTERM LEASE AN AIRLINE SPOKESMAN SAID THE GROUP ALSO HAS OPTIONS FOR AN ADDITIONAL THREE A340S AIRBUS AND AIR CANADA SIGNED A MEMORANDUM OF UNDERSTANDING ON THE SALE IN DECEMBER IN EXPLAINING ITS CHOICE FOR THE EUROPEANBUILT JETLINERS AIR CANADA CITED ITS THREEYEAR EXPERIENCE FLYING THE A320 BOTH THE FOURENGINE 260SEAT A340 AND THE SMALLER A320 ARE SIMILAR FOR COCKPIT CREWS TO FLY AIR CANADA EXPECTS TO USE THE NEW JETLINERS ON ITS TRANSATLANTIC ROUTES WHERE IT FLIES AGING BOEING CO 747 JUMBO JETS ANALYSTS SAID THE DEAL REFLECTS THE TREND AMONG AIRLINES TO TURN AWAY FROM THE 400SEAT 747S ON LONGDISTANCE ROUTES IN FAVOR OF SMALLER AIRCRAFT THAT NEED FEWER PASSENGERS TO TURN A PROFIT IN THE LAST 12 MONTHS THERE HAVE BEEN VERY FEW NEW ORDERS FOR THE BOEING 747 BUT THERE HAVE BEEN A STEADY FLOW OF ORDERS FOR THE A340 SAID KEITH HODGKINSON OF LEHMAN BROTHERS INTERNATIONAL IN LONDON HE NOTED THAT THE BOEING 777 AND 767 WHICH COMPETE WITH THE AIRBUS A340 AND ITS SISTER PLANE THE A330 ARE ALSO SELLING WELL 9402100008 940210 LAW APPEALS COURT INVALIDATES EPA RULES SHIELDING LENDERS FROM SUPERFUND LAW BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL IN A SHARP BLOW TO LENDERS A FEDERAL APPEALS COURT HAS INVALIDATED ENVIRONMENTAL PROTECTION AGENCY RULES THAT PROTECTED BANKS AND SAVINGS INSTITUTIONS FROM HAVING TO PAY FOR CLEANUPS AT HAZARDOUSWASTE SITES THE LAWSUIT INVOLVED A CHALLENGE BY CHEMICAL MANUFACTURERS AND THE STATE OF MICHIGAN TO EPA RULES ENACTED IN 1992 THAT PURPORTED TO CLARIFY AN EXEMPTION FOR BANKS AND OTHER LENDERS WITHIN THE FEDERAL SUPERFUND LAW AS WRITTEN THE LAW SHIELDS LENDERS WHO HAVE SECURED INTERESTS IN HAZARDOUSWASTE SITES BUT WHO AREN'T INVOLVED IN ACTIVELY MANAGING THE SITES THESE LENDERS TYPICALLY HOLD THE PROPERTY AS COLLATERAL OR HAVE BECOME OWNERS AS A RESULT OF HAVING FORECLOSED ON MORTGAGES BEGINNING IN 1990 HOWEVER A NUMBER OF FEDERAL COURTS BEGAN EXPANDING THE GROUNDS UPON WHICH LENDERS COULD BE SUED UNDER THE LAW THAT PROMPTED THE EPA UNDER PRESSURE FROM THE BANKING INDUSTRY TO ISSUE ITS RULES EMPHASIZING THAT LENDERS WERE INDEED BROADLY PROTECTED BUT THE US COURT OF APPEALS IN WASHINGTON LAST FRIDAY SAID THE AGENCY HAD GONE TOO FAR UNDER THESE CIRCUMSTANCES IT CANNOT BE ARGUED THAT CONGRESS INTENDED EPA ONE OF MANY POTENTIAL PLAINTIFFS TO HAVE AUTHORITY TO BY REGULATION DEFINE LIABILITY FOR A CLASS OF POTENTIAL DEFENDANTS THE COURT HELD IT IS A HUGE SETBACK FOR LENDERS IT BRINGS US BACK TO THE DAY OF COMPLETE UNCERTAINTY IN TERMS OF WHEN ACTIONS COULD CREATE SUPERFUND LIABILITY SAID PETER S CLARK A PARTNER WITH THE PHILADELPHIA FIRM OF DUANE MORRIS & HECKSCHER WHICH REPRESENTS LENDERS IN SUCH SITUATIONS AN EPA SPOKESWOMAN SAID THE AGENCY WAS REVIEWING THE CASE AND DECLINED TO COMMENT BANKS SAY THEY ARE BEING UNFAIRLY TARGETED AS DEFENDANTS IN SUCH CASES BECAUSE THEY HAVE DEEP POCKETS AND THAT IN MOST CASES THEY HAVE HAD LITTLE OR NO INVOLVEMENT IN THE CONDITIONS THAT CREATED POLLUTION AT THE SAME TIME STATES AND OTHERS CHARGED WITH CLEANING UP SUCH SITES INCLUDING POTENTIAL CODEFENDANTS SAY LENDERS BEAR SOME RESPONSIBILITY BECAUSE THEY BENEFIT FROM HAVING A FINANCIAL INTEREST IN THE PROPERTY AND ARE OFTEN IN A POSITION TO CONTROL THE OVERALL AFFAIRS OF THEIR CLIENTS THIS RULE WOULD HAVE ENCOURAGED BANKS TO FORECLOSE ON CONTAMINATED SITES OR FACILITIES AND THEN OPERATE THEM WITH LITTLE OR NO FEAR THAT THEY WOULD BE HELD LIABLE FOR THE CONTAMINATION OR DANGERS IT POSED FRANK KELLEY MICHIGAN'S ATTORNEY GENERAL SAID IN A PREPARED STATEMENT MOREOVER BANKS HAVE BEEN SUED FAIRLY SELECTIVELY UNDER THE LAW ACCORDING TO THEODORE L GARRETT A LAWYER AT THE WASHINGTON FIRM OF COVINGTON & BURLING WHO REPRESENTED THE CHEMICAL MANUFACTURERS ASSOCIATION IN THE CASE IN ONE INSTANCE HE CITES A LENDER WAS SAID TO HAVE DIRECTLY CAUSED THE POLLUTION WHEN IT CONTRACTED FOR THE REMOVAL OF SOME EQUIPMENT FROM A SITE A PENDING CLINTON ADMINISTRATION PROPOSAL TO REAUTHORIZE FUNDING FOR THE FEDERAL SUPERFUND PROGRAM INCLUDES A PROVISION THAT WOULD GIVE THE EPA THE AUTHORITY THAT THE APPEALS COURT SAID IT CURRENTLY LACKS BUT BANKERS AND SOME OTHER INTERESTS ARE CONCERNED ABOUT POSSIBLE DELAYS IN ENACTING THE PLAN FORCING THEM TO RELY INDEFINITELY ON A HAPHAZARD ARRAY OF COURT CASES FOR GUIDANCE CONFUSION IS RAMPANT SAID TOM GRECO ASSOCIATE GENERAL COUNSEL OF THE AMERICAN BANKERS ASSOCIATION WHO PREDICTED THAT THE COURT RULING WOULD PROBABLY REDUCE BANKS' WILLINGNESS TO LEND TO MANUFACTURERS AND OTHER INDUSTRIAL CONCERNS WE REALLY NEED TO HAVE SOME KIND OF LEGISLATIVE FIX HE ADDED 9402100007 940210 HEARD ON THE STREET CABLE STOCKS CLOUDED BY JITTERS OVER HEARING ON RATES APPEAR TO BE PREMIUM OPPORTUNITY BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS ARE ALREADY RECYCLING SOME OF LAST YEAR'S IDEAS LIKE BUYING CABLE STOCKS ON THE POSSIBILITY THAT THOSE COMPANIES WILL BE ACQUIRED BY REGIONAL TELEPHONE COMPANIES THAT IDEA AT LEAST MAY HAVE IMPROVED WITH AGE OVER THE LAST SEVERAL WEEKS CABLE STOCKS HAVE DRIFTED DOWNWARD CHIEFLY ON UNCERTAINTY ABOUT WHAT THE FEDERAL COMMUNICATIONS COMMISSION HAS IN STORE FOR THE INDUSTRY AT A HEARING ON CABLE RATES SET FOR THE END OF THIS MONTH THIS WEEK THE FCC EXTENDED ITS EXISTING FREEZE ON CABLE RATES UNTIL MAY 15 SUCH JITTERS MAY HAVE OPENED A WINDOW OF OPPORTUNITY THESE INVESTORS REASON CABLE STOCKS DON'T HAVE ANY TAKEOVER PREMIUM IN THEM RIGHT NOW SAYS SCOTT BILLEADEAU A PORTFOLIO MANAGER WITH PACIFIC CENTURY ADVISERS IN SAN DIEGO WE'RE PRETTY CONSTRUCTIVE ON THE GROUP HE SAYS MR BILLEADEAU AND A HANDFUL OF OTHER PROS MENTION CABLEVISION SYSTEMS COMCAST ADELPHIA AND CENTURY COMMUNICATIONS AS THE MOST LIKELY TARGETS OF TAKEOVER BIDS OVER THE NEXT SIX MONTHS OR SO IF SUCH BIDS MATERIALIZE SAYS MR BILLEADEAU THESE STOCKS WILL SOAR LIKE ROCKETS THE THEORY IS THIS IN ITS PLANNED MERGER WITH BELL ATLANTIC TELECOMMUNICATIONS INC IS VALUED AT 1175 TIMES CASH FLOW BY CONTRAST MOST CABLE COMPANIES ARE NOW TRADING AT MULTIPLES OF JUST EIGHT TO NINE TIMES THEIR 1994 CASH FLOW WHICH MAKES THEM RELATIVE BARGAINS SINCE MOST CABLE DEALS APPLY MULTIPLES OF ABOUT 12 TIMES CASH FLOW TO ACQUISITION TARGETS A TAKEOVER OFFER COULD SPUR A BIG GAIN IN THE STOCK PRICES OF CABLE COMPANIES FOR EXAMPLE MR BILLEADEAU FIGURES THAT COMCAST COULD JUMP TO ABOUT 30 FROM ITS CLOSING PRICE YESTERDAY OF 19 1/4 WHICH WAS UNCHANGED CENTURY MEANWHILE COULD JUMP TO 17 FROM ITS CLOSING PRICE OF 10 3/8 YESTERDAY ALSO UNCHANGED A MULTIPLE OF 12 TIMES CASH FLOW WOULD RAISE ADELPHIA'S STOCK PRICE TO 35 FROM YESTERDAY'S CLOSE OF 20 1/2 DOWN 1 1/8 BETTING ON TAKEOVER TARGETS IS A HIGHWIRE ACT UNDER ANY CIRCUMSTANCES IT IS ESPECIALLY SO WITH CABLE STOCKS BECAUSE OF POTENTIAL BAD NEWS LURKING IN THE CORRIDORS OF WASHINGTON INVESTORS ARE PREDICTING A WIDE RANGE OF OUTCOMES FROM THE FCC HEARING SCHEDULED FOR FEB 22 ONE OF THE MORE BENIGN RESULTS WOULD BE A BAN ON COMPLICATED PRICING STRUCTURES KNOWN AS A LA CARTE PRICING THAT HAVE ALLOWED CABLE COMPANIES TO BOOST RATES FOR ABOUT 30 OF ALL CUSTOMERS DESPITE AN ORDER BY THE FCC TO CUT SUCH RATES LAST SPRING A MORE DAMAGING OUTCOME FOR CABLE COMPANIES WOULD BE IF THE FCC WERE TO MANDATE ADDITIONAL ROLLBACKS IN RATES THAT WOULD NO DOUBT ANGER CABLE COMPANIES WHICH HAVE ALREADY SEEN A DIP IN THEIR CASH FLOW AS A RESULT OF LAST YEAR'S RATE CUTS THE POSSIBILITY OF ANOTHER RATE ROLLBACK IS FURTHER COMPLICATING THE COMPLETION OF BELL ATLANTIC'S MERGER WITH TCI WHICH IS BASED ON TCI'S CASH FLOW HOWEVER INVESTORS MAY HAVE ALREADY DISCOUNTED EVEN THE WORST POSSIBLE DENOUEMENTS AS CABLE STOCKS HAVE TUMBLED ABOUT 25 FROM LAST FALL WHEN THEY WERE RIDING HIGH IN COMMENTS TO CLIENTS TWO WEEKS AGO DENNIS LEIBOWITZ AN ANALYST WITH DONALDSON LUFKIN & JENRETTE IN NEW YORK SAID WE BELIEVE THAT THE STOCKS HAVE ALREADY LARGELY REACTED TO THIS PENDING REVIEW WHICH HAS ACCOUNTED FOR THE RECENT WEAKNESS AMONG CABLE OPERATORS AND HE POINTS OUT UNCERTAINTY ABOUT WHAT REGULATORS WOULD DO DIDN'T STOP INVESTORS FROM PLOWING MONEY INTO THE GROUP LAST SUMMER LAST YEAR IN THE FACE OF UNCERTAINTY FROM REGULATION MERGERRELATED ACTIVITY HAD AN OVERRIDING EFFECT ON THE STOCKS SAYS MR LEIBOWITZ IF THERE IS ANOTHER RATE ROLLBACK HE SAYS IT PROBABLY WON'T AMOUNT TO MORE THAN 3 TO 4 OF REVENUE OR 6 TO 8 OF CASH FLOW MR LEIBOWITZ HAS A BUY RECOMMENDATION ON COMCAST INDEED INVESTORS ARE BETTING THAT COMCAST WILL SOON SELL A LARGE EQUITY STAKE TO A REGIONAL TELEPHONE COMPANY PERHAPS BELLSOUTH TO RAISE CASH TO ACQUIRE NEW CABLE SYSTEMS ACCORDING TO ONE BIG INVESTOR COMCAST'S STRATEGY IS TO INCREASE THE NUMBER OF ITS SUBSCRIBERS TO ABOUT FIVE MILLION THAT'S THE MINIMUM NUMBER MANY PROS BELIEVE IS NECESSARY TO SURVIVE THE INTENSIFYING RIVALRIES IN THE TELECOMMUNICATIONS BUSINESS PERHAPS THE BEST CANDIDATE FOR A TAKEOVER CONTINUES TO BE CABLEVISION WHOSE MARKET INCLUDES THE COVETED NEW YORK AREA OTHER REGIONAL TELEPHONE COMPANIES THE THEORY GOES WOULD RELISH THE OPPORTUNITY TO TAKE ON NYNEX WHICH IS CONSIDERED ONE OF THE WEAKEST REGIONAL OPERATORS IN THE BELL SYSTEM THE ANNOUNCEMENT THIS WEEK THAT CABLEVISION PRESIDENT JAMES A KOFALT PLANS TO RESIGN ONLY ADDED FUEL TO THAT SPECULATION IN THE ANNOUNCEMENT MR KOFALT SAID IT WAS TIME FOR HE AND THE COMPANY TO MOVE IN NEW AND DIFFERENT DIRECTIONS 9402100006 940210 ECONOMY CLINTON BUDGET HAS MANY GIMMICKS ALONG WITH ITS SHARE OF SMOKE MIRRORS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON DECLARES HIS NEW BUDGET GIMMICKFREE IN CONTRAST TO PAST BUDGETS WHICH LACKED CREDIBILITY HE WROTE IN HIS INTRODUCTION THIS BUDGET DISPENSES WITH SMOKE AND MIRRORS ALMOST BUT NOT QUITE MR PRESIDENT MR CLINTON FOR INSTANCE PROPOSES TO SPEND 27 BILLION NEXT YEAR TO GET HIS HEALTH PLAN UP AND RUNNING BUT DOESN'T COUNT THIS AGAINST THE CAPS ON FEDERAL SPENDING THAT ARE SET BY LAW HOWEVER IN THE FOUR SUBSEQUENT YEARS WHERE THE PRESIDENT HAD A LITTLE MORE WIGGLE ROOM THE SPENDING IS COUNTED AGAINST THE CAP BOTTOM LINE MR CLINTON PROPOSES 27 BILLION MORE SPENDING FOR NEXT YEAR THAN THE CAPS ALLOW THE FINE PRINT IN THE PRESIDENT'S BUDGET ALSO SAYS HE IS COUNTING ON SAVING 106 BILLION OVER THE NEXT FIVE YEARS BY REINVENTING FEDERAL PROCUREMENT AS CHAIRMAN SAM NUNN D GA OF THE SENATE ARMED SERVICES COMMITTEE NOTES THE PENTAGON DOES MORE PROCUREMENT THAN ANY OTHER AGENCY BOTTOM LINE MR CLINTON PROPOSES TO SPEND LESS ON DEFENSE THAN HIS BUDGET SAYS HE DOES AND THEN THERE'S THE RHETORIC THE BUDGET ASSERTS THAT SEVEN OF THE 14 MAJOR DEPARTMENTS FACE A BUDGET CUT IN NOMINAL TERMS THE TABLE ON THE FACING PAGE SHOWS THAT MR CLINTON PROPOSES TO REDUCE BUDGET AUTHORITY THE MONEY THAT GOES INTO AGENCY CHECKBOOKS TO BE SPENT IN SOME FUTURE YEAR FOR FOUR DEPARTMENTS AND TO REDUCE OUTLAYS OR THE MONEY THAT COMES OUT OF THE CHECKBOOKS NEXT YEAR FOR SIX INSTEAD OF USING A CONSISTENT STANDARD THE WHITE HOUSE COUNTED ANY DEPARTMENT THAT HAD EITHER A CUT IN BUDGET AUTHORITY OR OUTLAYS WE HAVE PRESENTED NO GIMMICKS HERE BUDGET DIRECTOR LEON PANETTA SAID THIS WEEK WHAT YOU SEE IS WHAT YOU GET IN THIS BUDGET BUT MARTHA PHILLIPS HEAD OF THE DEFICITFIGHTING CONCORD COALITION SAYS THE PR JOB THAT'S BEING DONE ON THE NUMBERS BY THE CLINTON ADMINISTRATION IS ON A PAR WITH ITS PREDECESSORS AT LEAST MR PANETTA'S SPOKESMAN SAID THE HEALTHCOST ITEM WAS HANDLED UNUSUALLY BECAUSE THE ADMINISTRATION ISN'T SURE ITS PLAN WILL BE ADOPTED AND DIDN'T WANT TO TAKE MONEY FROM OTHER PROGRAMS HE ADDED THE WHITE HOUSE DOESN'T BELIEVE A SIGNIFICANT FRACTION OF THE PROCUREMENTREFORM SAVINGS WILL COME FROM THE PENTAGON DEFENSE SECRETARY WILLIAM PERRY SAID THIS WEEK HE WASN'T SO SURE THE FLAWS IN THE BUDGET UNDERMINE ITS CREDIBILITY BUT DON'T CHANGE THE MESSAGE THE FEDERAL DEFICIT IS SHRINKING AS IT DID LAST YEAR THE CLINTON ADMINISTRATION ADOPTED ECONOMIC ASSUMPTIONS IN LINE WITH THOSE OF PRIVATE FORECASTERS A MOVE THAT IS ESPECIALLY IMPORTANT TO FINANCIAL MARKETS' VIEW OF THE BUDGET BUT THE SMALL BAND OF PEOPLE WHO ACTUALLY READ THE TABLES IN THE BACK OF WHITE HOUSE BUDGETS ARE TURNING UP EVIDENCE TO CHALLENGE THE CLAIM THAT THIS BUDGET IS WITHOUT SIN AND THAT IGNORES CONTROVERSY OVER THE ACCOUNTING FOR THE CLINTON HEALTH PLAN THE BUDGET IS AS REMARKABLE FOR WHAT IT LEAVES OUT AS FOR WHAT IT TELLS US SAYS CAROL COX WAIT PRESIDENT OF THE PRIVATE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET IT LEAVES OUT THE COST OF WELFARE REFORM OF IMPLEMENTING THE WORLDWIDE TRADE AGREEMENT STRUCK LAST YEAR OF THE CALIFORNIA EARTHQUAKE AND OF OVERHAULING THE SUPERFUND HAZARDOUSWASTE CLEANUP PROGRAM SHE SAYS AND WE CAN'T TELL FROM THE BUDGET WHETHER OR NOT THE ADMINISTRATION FAVORS THE EXTENSION OF EXPIRING TAX LAWS MS WAIT SAYS A POPULAR TAX PROVISION THAT ALLOWS EMPLOYERS TO REIMBURSE WORKERS FOR TUITION FOR INSTANCE EXPIRES DEC 31 1994 HAD MR CLINTON SOUGHT TO EXTEND IT AS HE UNDOUBTEDLY WANTS TO DO HE WOULD HAVE HAD TO EXPLAIN HOW TO PAY FOR IT 9402100005 940210 WORLD MARKETS TOKYO STOCKS TUMBLE AS JAPAN'S STIMULUS PLAN ONLY MEETS EXPECTATIONS PRICES EASE IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS TUMBLED 2 WEDNESDAY AS JAPAN'S ECONOMYBOOSTING PACKAGE WAS CONSIDERED INSUFFICIENTLY STIMULATING AND A RALLY WAS INTERRUPTED BY SELLING OF STOCKINDEX FUTURES BY INSTITUTIONAL INVESTORS LONDON PRICES REBOUNDED FROM DEEP LOSSES TO END SLIGHTLY LOWER FRANKFURT SHARES RETREATED 1 ON PROFITTAKING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11596 DOWN 023 REFLECTING LOWER ASIA/PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS HOUSEHOLD PRODUCTS/NONDURABLES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11976 UP 252 OR 22 WITH PROCTER & GAMBLE OF THE US POSTING A 37 GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT 7258 DOWN 482 OR 62 WITH WMX TECHNOLOGIES OF THE US SLIDING 11 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 23683 POINTS TUESDAY LOST 40985 TO 1984138 ITS FIRST FINISH BELOW 20000 SINCE JAN 28 IN TRADING THURSDAY THE NIKKEI EASED 22 POINTS TO CLOSE THE MORNING SESSION AT 1981938 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 450 MILLION SHARES DOWN FROM 6164 MILLION SHARES A DAY EARLIER DECLINING SWAMPED GAINERS 915168 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 1526 POINTS TUESDAY SANK 1868 OR 12 TO 159802 INVESTORS SEARCHING FOR BUYING INCENTIVES DIDN'T FIND ANY IN JAPAN'S ECONOMIC STIMULUS MEASURES WHICH DIDN'T SURPASS EXPECTATIONS ENTHUSIASM ALSO WAS SAPPED BY THE GOVERNMENT'S DECISION NOT TO SPECIFY HOW IT WOULD FINANCE TAX CUTS AND RATHER TO NEGOTIATE OFFSETTING INCREASES LATER SIGNALING FURTHER POLITICAL BATTLES FUTURES WERE SOLD BECAUSE OF WORRIES THAT JAPANUS TRADE NEGOTIATIONS THIS WEEK COULD STUMBLE PUSHING THE JAPANESE YEN HIGHER THE SELLOFF ALSO WAS SPURRED BY DOMESTIC INVESTORS' SALES OF NIKKEI225 FUTURES AHEAD OF THE LAUNCH OF NIKKEI300 DERIVATIVES AND BY A SENSE THAT THE STOCK MARKET NEEDS EITHER NEW BUYING INCENTIVES OR A CORRECTION BEFORE IT CAN PUSH HIGHER OVERSEAS INVESTORS WHOSE PURCHASES SPURRED THE MARKET'S TORRID PACE LAST MONTH CONTINUED TO BUY THOUGH SOME TOOK PROFITS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 111 POINTS TO 34291 THOUGH IT WAS UP SOLIDLY FROM THE INTRADAY LOW OF 34037 THE FT 30STOCK INDEX DROPPED 77 POINTS TO 26342 VOLUME WAS 912 MILLION SHARES DOWN FROM 102 BILLION SHARES TUESDAY A STRONG EARLY PERFORMANCE ON WALL STREET HELPED REVERSE LONDON'S SLIDE THE GAINS IN NEW YORK EASED FEARS IN BRITAIN THAT HIGHER US INTEREST RATES WOULD CREATE A DOMINO EFFECT OF FALLING SHARE PRICES THROUGHOUT WORLD MARKETS BRITAIN'S CUT TUESDAY IN THE BASE LENDING RATE TO 525 FROM 55 LEFT THE BOURSE CONFUSED THOUGH LOWER RATES HAD BEEN LONG ANTICIPATED INVESTORS HAD ANTICIPATED A REDUCTION OF ONEHALF PERCENTAGE POINT AND THE QUARTERPOINT SHAVE WASN'T EXPECTED TO HAVE MUCH EFFECT STILL INVESTORS HOPED FOR ANOTHER TRIM TO BRING BRITAIN'S RATE DOWN TO 5 IN THE BANKING SECTOR WHERE PRICES ARE AT HIGH PREMIUMS TO THE OVERALL MARKET MOST SHARES DECLINED AS THE RATE CUT CREATED WORRIES THAT BANKS' INTERESTRATE MARGINS WOULD FALL THOUGH ANALYSTS SAID BANKS WILL BE HELPED IN THE LONG TERM BY LOWER RATES WHICH WILL MAKE IT EASIER FOR BORROWERS TO REPAY LOANS IN FRANKFURT THE DAX 30STOCK INDEX FELL 2192 POINTS TO 208529 LOSING MOST OF THE PREVIOUS SESSION'S GAINS TRADING WAS LIGHT EASILY CAUSING PRICE SWINGS OF THE DAX STOCKS SIX ADVANCED AND 23 DECLINED IN PARIS STOCKS ENDED MIXED TO SLIGHTLY HIGHER RECOVERING FROM A 11 LOSS DURING THE SESSION ON LOCAL BUYING IN LATE DEALINGS LIKEWISE IN AMSTERDAM PRICES FOUND LATE STRENGTH TO SCRAMBLE UP FROM LOWS AND FINISH MIXED IN REACTION TO WALL STREET'S EARLY FIRMNESS EARLY ACTIVITY WAS DAMPED BY DROPS IN OTHER EUROPEAN MARKETS AND IN TOKYO IN MADRID TOO SHARES STAGED A LATE REBOUND FROM LOWS TO CLOSE WITH SLIGHT LOSSES AFTER WALL STREET'S EARLY STRENGTH IN MILAN EQUITIES SOFTENED HAMPERED BY TECHNICAL FACTORS SUCH AS THE LOOMING SETTLEMENT DATE FOR THE FEBRUARY TRADING ACCOUNT IN BRUSSELS THE BROAD MARKET ENDED MIXED THOUGH THE MAIN INDEX SURGED FROM NEGATIVE TERRITORY TO END SLIGHTLY HIGHER AND LOG ITS SECOND RECORD IN A ROW IN STOCKHOLM SHARES DECLINED IN HEAVY TRADING AS RISING SWEDISH INTEREST RATES AND WEAK PERFORMANCES IN SOME MAJOR MARKETS ABROAD DEPRESSED PRICES VOLATILITY IN RECENT SESSIONS CREATED DOUBTS ABOUT WHETHER THE STOCKHOLM BOURSE COULD MAINTAIN THE ADVANCES THAT BEGAN LAST MONTH AND SOME INVESTORS TOOK PROFITS IN ZURICH THIS WEEK'S LOSSES INCREASED TO 36 AFTER PRICES FELL FROM SELLING SPARKED BY A REPORT THAT A MAJOR SWISS BANK CUT ITS EXPOSURE TO STOCKS TO 40 FROM 50 FOR ITS MANAGED PORTFOLIOS A STRATEGY CHANGE TRIGGERED BY THE US CREDIT TIGHTENING LAST FRIDAY SOME INVESTORS ALSO BELIEVED MAJOR WORLD MARKETS HAVE TOPPED OUT FOR NOW IN SYDNEY SHARE PRICES DIVED IN AFTERNOON TRADING ENDING WITH A 15 LOSS ON ACTIVE ARBITRAGE DEALINGS BETWEEN THE STOCK AND FUTURES MARKETS HEAVY SELLING OF THE STOCKINDEX FUTURES CONTRACT PUSHED IT TO A DISCOUNT TO THE MARKET'S MAIN INDEX BUT THIS DIDN'T UNNERVE INVESTORS AS FUNDAMENTALS REMAINED UNALTERED IN HONG KONG'S SHORTENED SESSION AHEAD OF A HOLIDAY FOR THE CHINESE NEW YEAR STOCKS INITIALLY GAINED ON A GOOD SHOWING FOR HONG KONG STOCKS IN LONDON AND WALL STREET'S FLAT SHOWING TUESDAY BUT THE MARKET LACKED A MOTIVE TO SUPPORT FURTHER RISES AND BUYING INTEREST PETERED OUT LEAVING PRICES SLIGHTLY HIGHER IN SINGAPORE SHARES ALSO CLOSED A HALFDAY SESSION HIGHER AHEAD OF THE HOLIDAY THE MARKET WAS HELPED BY BARGAINHUNTING AND BUYING BY FOREIGN INVESTORS AND REINED IN BY INSTITUTIONS WHICH WERE CAUTIOUS ABOUT VOLATILITY IN MANILA SHARES ADVANCED 14 IN MODERATE TURNOVER BOOSTED BY STRONG BUYING LATE IN THE SESSION LED BY UTILITIES BANKS AND CONTRACTORS IN BANGKOK STOCKS RALLIED 28 ON IMPROVED SENTIMENT BUT ACTIVITY WAS THIN AHEAD OF A HOLIDAY THURSDAY THE KUALA LUMPUR TAIPEI AND SEOUL BOURSES WERE CLOSED FOR LUNAR NEW YEAR OBSERVANCES 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 9402100004 940210 LARGETRADER RULE AS TRACKING TOOL PROPOSED BY SEC BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS TRYING FOR A SECOND TIME TO MAKE IT EASIER FOR THE AGENCY TO IDENTIFY LARGE SECURITIES TRANSACTIONS THAT TOOK PLACE IN VOLATILE MARKET SESSIONS UNDER A RULE PROPOSED YESTERDAY SECURITIES BROKERS WOULD BE REQUIRED TO MAINTAIN ELECTRONIC RECORDS OF ALL TRADES BY LARGE TRADERS THE TRADERS THEMSELVES WOULD BE REQUIRED TO REGISTER WITH THE SEC THE SEC ALSO PROPOSED A SEPARATE RULE REQUIRING BROKERDEALERS THAT OPERATE AUTOMATED TRADING SYSTEMS TO KEEP RECORDS OF TRADING VOLUME AND SYSTEM PARTICIPANTS AND TO REPORT TRADING ACTIVITY EACH QUARTER TO THE SEC THE RULE WAS SUGGESTED IN THE AGENCY STAFF'S RECENT MARKET 2000 REPORT THE EFFORT TO COLLECT LARGETRADER REPORTS DATES BACK TO THE MONTHS FOLLOWING THE 1987 STOCKMARKET CRASH WHEN THE SEC AND THE STOCK EXCHANGES HAD GREAT DIFFICULTY RECONSTRUCTING RECORDS OF THE LARGE TRADES THAT TOOK PLACE BEFORE AND DURING THE MARKET DROP A SIMILAR EFFORT TO TRACK LARGE TRADES IN THE 1989 MARKET DROP LASTED SIX MONTHS SEC STAFFERS SAID BUT THE AGENCY'S FIRST PROPOSED REMEDY OFFERED IN AUGUST 1991 WAS ROUNDLY OPPOSED BY BROKERS AND LARGE TRADERS THE NEW PROPOSAL INCORPORATES SOME OF THE SUGGESTIONS FROM THOSE GROUPS INCLUDING A DIFFERENT DEFINITION OF LARGE TRADER THE NEW RULE WOULD COVER INDIVIDUALS AND INSTITUTIONS THAT TRADE A MINIMUM OF 200000 SHARES WITH A MARKET VALUE OF 2 MILLION OR MORE IN 24 HOURS IT WOULD ALSO APPLY TO TRADERS WHOSE TRANSACTIONS IN 24 HOURS TOTAL 10 MILLION OR MORE THE OLD PROPOSAL DEFINED LARGE TRADERS AS THOSE TRADING A MINIMUM OF 100000 SHARES OR 4 MILLION IN 24 HOURS THE RULE WOULD REQUIRE BROKERS TO KEEP RECORDS OF LARGE TRADERS' TRANSACTIONS AND PROVIDE THOSE RECORDS TO THE SEC IF REQUESTED A LOT OF THE INFORMATION THAT THIS DEALS WITH IS INFORMATION THAT THE SEC ALREADY HAS ACCESS TO SAID MARK FITTERMAN ASSOCIATE DIRECTOR OF THE AGENCY'S MARKETREGULATION DIVISION THE ULTIMATE GOAL IS TO PERMIT US AS AN AGENCY TO EXPLAIN WHAT HAPPENS IN PERIODS OF MARKET VOLATILITY THE SEC WILL COLLECT COMMENTS FOR 60 DAYS ON THE LARGETRADER TRACKING PROPOSAL AS WELL AS THE PROPOSED RECORDKEEPING REQUIREMENTS FOR AUTOMATED TRADING SYSTEMS FINAL RULES WILL BE PROPOSED AFTER THE COMMENTS ARE STUDIED 9402100003 940210 TECHNOLOGY & HEALTH BACTERIUM CAUSES MOST PEPTIC ULCERS PANEL SAYS THAT ANTIBIOTICS TAKEN FOR TWO WEEKS CAN CURE MANY CASES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BETHESDA MD 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 ULCER PATIENTS THE PANEL'S RECOMMENDATIONS WOULD MARK A DRASTIC CHANGE IN THE WAY PHYSICIANS TREAT PEPTIC ULCERS WHICH ARE PRESENT IN FOUR MILLION AMERICANS THE PANEL'S FINDINGS COULD GREATLY REDUCE TREATMENT COSTS NOW MOST PATIENTS ARE GIVEN DRUGS THAT STOP THE PRODUCTION OF STOMACH ACID AND SWITCHING TO ANTIBIOTICS IS LIKELY TO HURT SALES OF THOSE DRUGS BUT BRITAIN'S GLAXO HOLDINGS PLC WHICH MAKES ZANTAC THE WORLD'S BIGGEST SELLING DRUG AND SMITHKLINE BEECHAM PLC WHICH SELLS TAGAMET SAID THEY DIDN'T EXPECT OVERALL SALES TO BE DOWN SHARPLY SINCE BOTH DRUGS ARE MOSTLY USED TO TREAT SEVERE HEARTBURN AND OTHER NONULCER DISORDERS HOWEVER THE PANEL SAID RESEARCH SHOULD BE UNDERTAKEN TO SEE IF PATIENTS WHO HAVE OTHER STOMACH CONDITIONS AND ARE INFECTED BY THE BACTERIUM CAN BE HELPED BY ANTIBIOTICS THE PANEL OF 15 MEDICAL EXPERTS WAS CONVENED HERE BY THE NATIONAL INSTITUTES OF HEALTH TO EVALUATE A DECADE OF RESEARCH AND CONTROVERSY OVER THE ROLE OF THE BACTERIUM IN ULCERS AFTER HEARING A DAY AND A HALF OF TESTIMONY BY ULCER RESEARCHERS THE PANEL YESTERDAY ISSUED A CONSENSUS STATEMENT ALL PATIENTS WITH GASTRIC OR DUODENAL ULCERS WHO ARE INFECTED WITH THE BACTERIUM SHOULD BE TREATED WITH ANTIMICROBIALS REGARDLESS OF WHETHER THEY ARE SUFFERING FROM THE INITIAL PRESENTATION OF THE DISEASE OR FROM A RECURRENCE THE PANEL STATED THE PANEL SAID TWO WEEKS OF ANTIBIOTIC THERAPY SHOULD ERADICATE THE ULCERCAUSING BACTERIUM CALLED H PYLORI FROM THE STOMACH AND UPPER PART OF THE SMALL INTESTINE AND THUS CURE THE PATIENTS OF PEPTICULCER DISEASE THIS REDUCES THE CHANCES OF THE ULCER RECURRING TO LESS THAN 10 FOR THOSE PATIENTS WHO HAVE ALREADY BEEN DIAGNOSED WITH AN ULCER THERE ARE SEVERAL DIAGNOSTICS THAT MIGHT BE USED TO SEE IF THEY ARE INFECTED WITH H PYLORI BUT NOT ALL ARE YET AVAILABLE SEVERAL KITS FOR A BLOOD TEST THAT LABORATORIES CAN USE TO DIAGNOSE THE INFECTION ARE AVAILABLE THE PANEL SAID ONE PART OF THE PANEL'S STATEMENT MAY STIR CONSIDERABLE CONTROVERSY THIS INVOLVES WHICH OF SEVERAL POSSIBLE COMBINATIONS OF DRUGS DOCTORS SHOULD USE TO TREAT ULCER PATIENTS INFECTED WITH THE BACTERIUM DURING THE PANEL'S HEARINGS RESEARCHERS DESCRIBED THE EFFECTIVENESS OF A HALFDOZEN DIFFERENT COMBINATIONS OF ANTIBIOTICS AND ULCERHEALING DRUGS IN ERADICATING THE BACTERIUM AT PRESENT MOST PEPTICULCER PATIENTS ARE INITIALLY TREATED WITH DRUGS LIKE TAGAMET AND ZANTAC KNOWN AS H2 BLOCKERS THAT STOP STOMACHACID PRODUCTION DRUGS AND GENETIC FACTORS ALSO CAUSE ULCERS THESE HIGHLY EFFECTIVE DRUGS SPEED THE HEALING OF ULCERS BUT IF THE PATIENT STOPS TAKING THEM HE OR SHE HAS A 50 TO 80 CHANCE OF THE ULCER RECURRING AS A RESULT MANY ULCER PATIENTS MUST CONTINUE TAKING AN H2 BLOCKER FOR YEARS ERADICATING H PYLORI WOULD END THE PATIENTS' NEEDS FOR LONGTERM USE OF THE H2 BLOCKERS THE PANEL HEARD ONE REPORT ON THE ECONOMICS OF THE NEW ANTIBIOTIC THERAPY PRESENTED BY AMNON SONNENBERG A GASTROENTEROLOGIST AT THE MEDICAL COLLEGE OF WISCONSIN IN MILWAUKEE HE NOTED THAT PEPTICULCER DISEASE USUALLY LASTS ABOUT 15 YEARS BEFORE USUAL TREATMENTS CURE IT THE NEW ANTIBIOTIC THERAPY HE ESTIMATED WOULD COST ABOUT 925 DURING THIS TIME WHEREAS 15 YEARS OF MAINTENANCE THERAPY WITH THE H2 BLOCKERS WOULD COST MORE THAN 11500 STOMACH SURGERY WHICH IS DONE WHEN ULCERS BLEED REPEATEDLY WOULD COST ALMOST 18000 H2 BLOCKERS ARE A HUGE MARKET ESTIMATED AT 5 BILLION WORLDWIDE GLAXO'S ZANTAC HAD SALES OF 35 BILLION IN THE FISCAL YEAR ENDING LAST JUNE REPRESENTING NEARLY HALF THE COMPANY'S SALES SMITHKLINE'S TAGAMET THE ORIGINAL H2 BLOCKER REPRESENTS ANOTHER BILLION DOLLARS IN YEARLY SALES BUT GLAXO AND SMITHKLINE REPRESENTATIVES POINTED OUT THAT MOST OF THEIR DRUGS' SALES WOULDN'T BE AFFECTED BY ANY CHANGE IN THE TREATMENT OF ULCERS NONULCER TREAT MENTS SUCH AS FOR SEVERE HEARTBURN ACCOUNT FOR ABOUT 70 OF ZANTAC'S SALES A GLAXO SPOKESWOMAN SAID A SMITHKLINE SPOKESMAN SAID LESS THAN 15 OF TAGAMET PRESCRIPTIONS WOULD BE AFFECTED BY THE SUGGESTED CHANGES IN ULCER TREATMENT H2 BLOCKERS WOULD CONTINUE TO BE USED ALONG WITH ANTIBIOTICS AS AN INITIAL TREATMENT FOR ULCERS AND WOULD BE USED AS MAINTENANCE THERAPY IN PATIENTS WITH COMPLICATIONS SUCH AS BLEEDING THE GLAXO SPOKESWOMAN SAID GLAXO IS TESTING A PRODUCT THAT COMBINES ZANTAC AND BISMUTH TO SEE IF IT IS EFFECTIVE AGAINST THE BACTE RIUM SHE SAID THE MOST EFFECTIVE COMBINATION OF DRUGS ERADICATING THE BACTERIUM FROM ABOUT 90 OF PATIENTS IS THE SOCALLED TRIPLE THERAPY CONSISTING OF BISMUTH SUBSALICYLATE SOLD IN THE US AS PEPTOBISMOL BY PROCTER & GAMBLE CO PLUS METRONIDAZOLE AND EITHER TETRACYCLINE OR AMOXICILLIN THE PANEL SAID THE PANEL NOTED THAT ANOTHER TRIPLE THERAPY ERADICATING THE BACTERIUM IN 90 OF PATIENTS INCLUDED TWO ANTIBIOTICS AMOXICILLIN AND METRONIDAZOLE PLUS GLAXO'S ZANTAC BUT THE PANEL SAID TRIPLE COMBINATIONS MAY BE DIFFICULT FOR PATIENTS TO TAKE SINCE THEY INVOLVE TAKING SEVERAL PILLS THREE OR FOUR TIMES A DAY FOR TWO WEEKS AN EASIER COMBINATION FOR THE PATIENTS TO USE FOR TWO WEEKS BUT WHICH ERADICATES THE BACTERIUM FROM 80 OF PATIENTS IS THE ANTIBIOTIC AMOXICILLIN TAKEN FOUR TIMES A DAY PLUS OMEPRAZOLE TAKEN TWICE A DAY THE LATTER IS AN ULCERHEALING DRUG DEVELOPED BY AB ASTRA OF SWEDEN WHICH SELLS IT AS LOSEC IN MOST PARTS OF THE WORLD IN THE US IT IS SOLD BY MERCK & CO WHITEHOUSE STATION NJ AS PRILOSEC THE DRUG STOPS PRODUCTION OF STOMACH ACID BUT BY A DIFFERENT MEANS THAN THE H2 BLOCKERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MERCK STOCK ROSE 375 CENTS OR 11 TO CLOSE AT 34875 A SHARE MEANWHILE AMERICAN DEPOSITARY RECEIPTS OF GLAXO FELL 25 CENTS OR 13 TO CLOSE AT 19125 WHILE AMERICAN DEPOSITARY SHARES OF SMITHKLINE ROSE 25 CENTS OR 08 TO CLOSE AT 30875 A SHARE HOW RAPIDLY DOCTORS WILL BEGIN USING THE NEW APPROACH TO ULCERS IS UNCERTAIN VERY FEW PHYSICIANS ARE TREATING THE INFECTION TODAY POSSIBLY ONLY 1 OR 2 OF DOCTORS ESTIMATED GASTROENTEROLOGIST TADATAKA YAMADA OF THE UNIVERSITY OF MICHIGAN WHO HEADED THE EXPERT PANEL MOST OF THE DRUGS USED IN THE NEW THERAPY ARE ALREADY ON THE MARKET BUT THEIR MANUFACTURERS HAVEN'T YET RECEIVED APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION TO PROMOTE THE USE OF THE COMBINATIONS FOR THE TREATMENT OF INFECTED ULCER PATIENTS A STATEMENT ISSUED BY ASTRA AND MERCK SAID THAT RESEARCH ON ANTIBIOTICOMEPRAZOLE TREATMENT IN DUODENAL ULCER PATIENTS HAS BEEN UNDER WAY FOR SOME TIME IN EUROPE AND THE US A SPOKESMAN FOR ABBOTT LABORATORIES WHOSE CLARITHROMYCIN ANTIBIOTIC IS USED IN SOME OF THE COMBINATIONS SAID THE COMPANY IS NOW GATHERING PATIENT DATA ON THE NEW TREATMENT PREPARATORY TO APPLYING FOR FDA APPROVAL DOCTORS HOWEVER ARE FREE TO PRESCRIBE THE DRUGS FOR THEIR ULCER PATIENTS EVEN IF SUCH USE HASN'T BEEN APPROVED BY THE FDA HOW SOON THEY WILL SWITCH TO THE THERAPY MAY WELL DEPEND ON HOW MUCH PUBLICITY SURROUNDS THE PANEL'S REPORT AT LEAST ONE GROUP THE AMERICAN GASTROENTEROLOGICAL ASSOCIATION'S FOUNDATION SAID DETECTION AND ELIMINATION OF THE BACTERIUM WILL BE THE FIRST TARGET OF A NEW EDUCATION PROGRAM IT'S LAUNCHING ON DIGESTIVE DISEASES IN ADDITION THE CONSENSUS STATEMENTS ISSUED BY THE NIH PANELS OFTEN ARE VIEWED AS STANDARDS OF PRACTICE AND THE PANEL'S STATEMENT MAY ADD TO THE PRESSURE ON DOCTORS TO SWITCH TO THE ANTIBIOTIC THERAPY AS FOR SALES OF GLAXO AND SMITHKLINE THE MORE IMMEDIATE PROBLEM FACING ALL H2 BLOCKERS IS THE MAY PATENT EXPIRATION OF TAGAMET A GENERIC TAGAMET IS A THREAT TO ZANTAC AND MERCK'S PEPCID ANALYSTS SAID BECAUSE MANY PHYSICIANS AND MANAGEDCARE ORGANIZATIONS VIEW ALL THE DRUGS AS INTERCHANGEABLE THE SINGLE MOST IMPORTANT ISSUE FOR ZANTAC IS THE TAGAMET PATENT EXPIRATION SAID ALEX ZISSON AN ANALYST AT HAMBRECHT & QUIST THE EXPERT PANEL'S RECOMMENDATION IS A THEORETICAL ISSUE WITH MANY UNRESOLVED QUESTIONS HE ADDED AND IS OF LESS IMMEDIATE CONCERN TO INVESTORS ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9402100001 940210 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 ARVIN INDUSTRIES INC 75 MILLION OF NOTES DUE FEB 15 2001 PRICED AS 6875S AT 9981 TO YIELD 691 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE THE 775 TREASURY MATURING IN FEB 2001 RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 205 MILLION OF NOTES DUE FEB 24 1997 PRICED INITIALLY AT PAR TO YIELD 492 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 11 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE FEB 18 2004 PRICED INITIALLY AT PAR TO YIELD 6485 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE FEB 14 1997 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 14 BASIS POINTS ABOVE TREASURYS THE COUPON RISES TO 525 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GB PROPERTY FUNDING CORP 185 MILLION OF FIRSTMORTGAGE NOTES DUE JAN 15 2004 PRICED AT PAR TO YIELD 10875 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P GB PROPERTY IS A UNIT OF PRATT HOTEL CORP NEXTEL COMMUNICATIONS INC 700 MILLION PROCEEDS OF SENIOR REDEEMABLE DISCOUNT NOTES DUE AUG 15 2004 PRICED AT 62143 TO YIELD 975 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 383 BASIS POINTS ABOVE TREASURYS NO COUPON WILL BE PAID FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S AND TRIPLECMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PRT FUNDING CORP 85 MILLION OF SENIOR NOTES DUE APRIL 15 2004 PRICED AT PAR TO YIELD 11625 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P PRT FUNDING IS A UNIT OF PRATT HOTEL CORP STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE FEB 22 1999 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WILL FLOAT WEEKLY AND PAY QUARTERLY AT 20 BASIS POINTS OVER 91DAY TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO VENTURE HOLDINGS TRUST 100 MILLION OF SENIOR SUBORDINATED NOTES DUE APRIL 1 2004 PRICED AT PAR TO YIELD 975 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC WACHOVIA BANK OF NORTH CAROLINA NA 75 MILLION OF NOTES DUE FEB 16 1996 PRICED AS 425S AT 99917 TO YIELD 455 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 13 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC WACHOVIA BANK IS A UNIT OF FIRST WACHOVIA CORP AMERICAN PAGING INC INITIAL PUBLIC OFFERING OF 35 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AMERICAN PAGING IS A UNIT OF TELEPHONE & DATA SYSTEMS INC ISTITUTO MOBILIARE ITALIANO SPA INITIAL OFFERING OF 117 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 1924 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY CS FIRST BOSTON MABON SECURITIES AND SG WARBURG EACH ADR REPRESENTS THREE COMMON SHARES JONES APPAREL GROUP INC 31 MILLION COMMON SHARES PRICED AT 3050 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NATIONAL HEALTH INVESTORS INC FOUR MILLION SHARES OF 85 CUMULATIVE CONVERTIBLE PREFERRED STOCK FOR 25 EACH WITH AN ANNUAL DIVIDEND OF 2125 A SHARE ACCORDING TO THE COMPANY HOLDERS OF THE CONVERTIBLE PREFERRED STOCK CAN CONVERT THEIR SHARES TO COMMON STOCK AT ANY TIME AT A PRICE OF 27625 THE CONVERSION RATIO IS 0905TO1 ISSUER MAY REDEEM THE PREFERRED STOCK FOR COMMON STOCK BEGINNING DEC 31 1998 IF FOR 20 TRADING DAYS WITHIN ANY PERIOD OF 30 CONSECUTIVE TRADING DAYS THE CLOSING PRICE OF THE COMMON STOCK EXCEEDS 27625 A SHARE MANAGING UNDERWRITERS ARE NATWEST SECURITIES LTD DEAN WITTER REYNOLDS INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP SMITH BARNEY SHEARSON INC JC BRADFORD & CO AND EQUITABLE SECURITIES CORP WESTERN NATIONAL CORP 343 MILLION SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO SELLING SHAREHOLDER CONSECO INC HEALTHCARE REALTY TRUST INC 62 MILLION COMMON SHARES PRICED AT 21375 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SUMMIT PROPERTIES INC INITIAL OFFERING OF 10 MILLION COMMON SHARES PRICED AT 19 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BOSTON 85 MILLION OF REFUNDING GENERALOBLIGATION BONDS WITH YIELDS FROM 24 IN JULY TO 515 IN 2011 THROUGH A MERRILL LYNCH & CO GROUP THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW MEXICO EDUCATIONAL ASSISTANCE FOUNDATION 150 MILLION OF 1994 SERIES II AND 1995 SERIES III STUDENTLOAN PURCHASE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP THE OFFERING INCLUDES 647 MILLION OF SENIOR 1994 SERIES IIA BONDS PRICED TO YIELD FROM 39 IN 1996 TO 555 IN 2008 THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX AND HAVE A TRIPLEA RATING FROM MOODY'S THE 73 MILLION OF FIRST SUBORDINATE 1994 SERIES IIB BONDS ARE 575S PRICED AT PAR TO YIELD 575 DEC 1 2008 THEY ARE SUBJECT TO THE ALTENATIVEMINIMUM TAX AND HAVE A SINGLEA RATING FROM MOODY'S THE 3 MILLION OF SECOND SUBORDINATE 1994 SERIES IIC BONDS ARE 6S PRICED AT PAR TO YIELD 6 DEC 1 2008 THESE BONDS SUBJECT TO THE ALTERNATIVEMINIMUM TAX HAVEN'T BEEN RATED THE 585 MILLION OF SENIOR 1995 SERIES IIIA1 BONDS ARE PRICED TO YIELD FROM 54 IN 2001 TO 59 IN 2008 AND 2009 THEY ARE SUBJECT TO THE ALTERNATIVEMINIMUM TAX AND HAVE A TRIPLEA RATING FROM MOODY'S THE 53 MILLION OF SENIOR 1995 SERIES IIIA2 BONDS ARE 56S PRICED AT PAR TO YIELD 56 DEC 1 2006 THEY AREN'T SUBJECT TO THE ALTERNATIVEMINIMUM TAX AND HAVE A TRIPLEA RATING FROM MOODY'S THE 112 MILLION OF FIRST SUBORDINATE 1995 SERIES IIIB BONDS ARE 6S PRICED AT PAR TO YIELD 6 ON DEC 1 2009 THEY ARE SUBJECT TO THE ALTERNATIVEMINIMUM TAX AND HAVE A SINGLEA RATING FROM MOODY'S FEDERAL NATIONAL MORTGAGE ASSOCIATION 545 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199442 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1625 MILLION OF REMIC SECURITIES OFFERED BY BLAYLOCK & PARTNERS LP THE OFFERING SERIES 199435 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS PEOPLE'S BANK 200 MILLION OF ASSETBACKED CERTIFICATES PRICED AS 51S AT 9996875 TO YIELD 5166 ACCORDING TO MCM CORPORATEWATCH THE YIELD OF THE ISSUE PEOPLE'S BANK CREDIT CARD MASTER TRUST 19941 IS 35 BASIS POINTS ABOVE THE TREASURY'S WHENISSUED THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS AND WERE SOLD BY UNDERWRITERS LED BY GOLDMAN SACHS & CO THE CERTIFICATES BACKED BY CREDITCARD RECEIVABLES WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 125 LAYER OF CREDIT SUPPORT THE ENHANCEMENT CONSISTED OF A 95 INSURANCE WRAP PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO AND A 3 CASH COLLATERAL ACCOUNT UNITED COS FINANCIAL CORP 1787 MILLION OF HOMEEQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN SIX PARTS BY PRUDENTIAL SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE RATED TRIPLEA BASED ON A 100 INSURANCE WRAP PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO THE 731 MILLION OF CLASS A1 CERTIFICATES WAS PRICED AS 4825 AT 1001875 TO YIELD 455 A 60BASISPOINT SPREAD ABOVE THE TREASURY'S ONEYEAR BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF ONE YEAR THE 4127 MILLION OF CLASS A2 CERTIFICATES WAS PRICED AS 5525S AT 10015625 TO YIELD 5479 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 315 YEARS THE 344 MILLION OF CLASS A3 CERTIFICATES WAS PRICED AS 612S AT 100125 TO YIELD 61 A 65BASISPOINT SPREAD ABOVE THE INTERPOLATED 59YEAR TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF 59 YEARS THE 139 MILLION OF CLASS A4 CERTIFICATES WAS PRICED AS 6779S AT 100125 TO YIELD 6725 AN 85BASISPOINT SPREAD ABOVE THE WHENISSUED 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 101 YEARS THE 23 MILLION OF CLASS A5 CERTIFICATES WAS PRICED AS 727S AT 10015625 TO YIELD 72 AN 82BASISPOINT SPREAD ABOVE THE TREASURY'S 30YEAR BOND THE CERTIFICATES HAVE AN AVERAGE LIFE OF 161 YEARS THE 1374 MILLION OF CLASS A6 FLOATINGRATE NOTES WAS PRICED AT PAR TO FLOAT 375 BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE TO A 12 CAP BANK IN LIECHTENSTEIN FINANCE LIECHTENSTEIN PARENT 100 MILLION SWISS FRANCS OF FIXED AND FLOATINGRATE PUBLIC BONDS DUE MARCH 24 2000 PRICED AT 1005 VIA SWISS BANK CORP COUPON 4 YEARS ONE AND TWO THEREAFTER AT SIXMONTH SWISS FRANC LIBOR LESS 015 POINT BANK NEDERLANDSE GEMEENTEN NV DUTCH AGENCY 150 MILLION OF 5 EUROBONDS DUE MARCH 10 1997 AT ISSUE PRICE 1011175 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9993 TO YIELD 503 A MARGIN OF 135 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 COMPANHIA BRASILEIRA DE PETROLEO IPIRANGA SA BRAZIL 80 MILLION OF EUROBONDS DUE FEB 22 2002 AT ISSUE AND REOFFER PRICE 996 VIA JP MORGAN SECURITIES LTD SEMIANNUAL COUPON 8625 FIRST THREE YEARS TO YIELD SPREAD OF 395 BASIS POINTS OVER INTERPOLATED FIVEYEAR TO 10YEAR US TREASURY YIELD CURVE THEREAFTER COUPON 10625 TO YIELD 406 BASIS POINTS OVER SAME YIELD CURVE YIELD TO MATURITY 977 CALLABLE FEB 25 1997 AT PAR TO YIELD SPREAD OF 406 BASIS POINTS OVER WHENISSUED THREEYEAR TREASURY PUT OPTION ON SAME DATE EXERCISABLE AT SPREAD OF 395 BASIS POINTS OVER WHEN ISSUED THREEYEAR US TREASURY FEES ONE EUROPEAN INVESTMENT BANK SUPRANATIONAL 50 BILLION SPANISH PESETAS OF 75 MATADOR BONDS DUE MARCH 3 2001 AT ISSUE PRICE 101125 VIA BANCO SANTANDER DE NEGOCIOS BANCO DE NEGOCIOS ARGENTARIA SA AND BANCO ESPANOL DE CREDITO SA BONDS YIELD 7595 AT 995 COMANAGERS' BREAKEVEN PRICE FEES 175 LESS 0125 FOR LEAD MANAGER GENERAL ELECTRIC CAPITAL CORP US PARENT 150 MILLION OF 625 EUROBONDS DUE DEC 7 1999 AT ISSUE PRICE 101485 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 9986 TO YIELD 627 A MARGIN OF 19 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 1875 GIROCREDIT BANK AG DER SPARKASSEN AUSTRIA 100 MILLION OF SUBORDINATED FLOATINGRATE NOTES DUE MARCH 8 2004 AT ISSUE AND REOFFER PRICE 99875 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR LESS 0125 POINT MINIMUM COUPON 5125 FEES 05 KANTO BIOMEDICAL LABORATORY CO JAPAN 65 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0625 NOTES DUE MAY 31 1998 AT PAR VIA DAIWA BANK SCHWEIZ AG NOTES CONVERTIBLE MARCH 14 TO MAY 21 1998 AT EXPECTED 25 PREMIUM TERMS FIXED MONDAY FEES 1625 LONDON & MANCHESTER GROUP PLC UK 50 MILLION OF 8125 EUROBONDS DUE NOV 30 2004 AT ISSUE PRICE 100619 VIA SG WARBURG SECURITIES LTD REOFFERED AT 99119 TO YIELD 824 A MARGIN OF 150 BASIS POINTS OVER COMPARABLE UK GILT FEES TWO SALOMON INC US 150 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE 99355 VIA SALOMON BROTHERS INTERNATIONAL LTD PAYABLE QUARTERLY AT 40 BASIS POINTS OVER THREEMONTH POUND LIBOR FEES 025 SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 800 MILLION FRENCH FRANCS OF EUROBONDS DUE JUNE 1 2004 AT ISSUE AND REOFFER PRICE 997 VIA SOCIETE GENERALE COUPON 65 PAYABLE DEC 1 THEREAFTER PAYABLE QUARTERLY AT 152 LESS TOTAL OF 185 TIMES THREEMONTH PARIS INTERBANK OFFERED RATE MINIMUM ZERO GUARANTOR SOCIETE GENERALE FEES 05 SWEDISH EXPORT CREDIT LTD SWEDISH AGENCY 300 MILLION OF 5 EUROBONDS DUE MARCH 10 1997 AT ISSUE PRICE 1011875 VIA KIDDER PEABODY SECURITIES LTD REOFFERED AT PAR TO YIELD 5 A MARGIN OF 10 BASIS POINTS OVER COMPARABLE US TREASURY FEES 1375 9402100153 940118 DEAR NAOMI WOMEN OPINIONS AND THE PRESS BY AMITY SHLAES JANUARY THE CALENDAR OVER MY COMPUTER SAYS AND AT THE TOP IN GREEN INK WOMEN THIS PENNED QUESTION TO MYSELF REPRESENTS THE TINY BYPRODUCT OF A DEBATE RAGING IN MAGAZINES AND OPINION PAGES LIKE THIS ONE LATE LAST YEAR THE NEW REPUBLIC ITSELF NO BASTION OF TOWERING FEMALES PUBLISHED A COVER STORY BY WRITER NAOMI WOLF ARGUING THAT MEN ALONE CONTROL THE WORLD OF OPINION MAKING MS WOLF'S ARGUMENT RELIED ON A STUDY THAT SHOWED WOMEN WRITE A MERE 10 TO 20 OF OPED ARTICLES THE GROUP THAT PRODUCED THE STUDY WOMEN MEN & MEDIA WAS RUMORED TO BE PLANNING ANOTHER THIS TIME FOR JANUARY SO THE QUESTION HERE WAS SHOULD WE MAKE AN EFFORT THIS MONTH TO LARD OUR PAGE WITH WOMEN WRITERS NO IS THE SHORT ANSWER THE MAIN REASON OF COURSE IS THAT OPED PAGES OR MAGAZINES AREN'T AFFIRMATIVEACTION SCORE CARDS WHEN AN ARTICLE COMES INTO A PAPER EDITORS MEN AND WOMEN ASK QUESTIONS ABOUT IT IS THE ARTICLE TIMELY IS IT WELL WRITTEN ON A PAGE LIKE OURS WHICH STANDS FOR INDIVIDUAL LIBERTY WE MAY ASK WHAT DOES THIS SAY ABOUT FREE MARKETS RARELY IS OUR QUESTION IS THIS BY A WOMAN WHAT ELSE IS WEIRD ABOUT THIS DISCUSSION WELL FIRST OF ALL ITS TERMS ARE WRONG MS WOLF WRITES THAT THE AGORA OF OPINION IS LARGELY A MEN'S CLUB YET A NUMBER OF WOMEN ARE REGULARS IN WHAT MS WOLF HAS CALLED THE WHITE BOY ROLODEX ONE IS COLUMNIST MONA CHAREN ANOTHER IS LORETTA MCLOUGHLIN UNTIL RECENTLY EDITORIAL PAGE EDITOR OF THE BOSTON GLOBE ANNE APPLEBAUM IS FOREIGN EDITOR OF BRITAIN'S MOST INFLUENTIAL OPINION MAGAZINE THE SPECTATOR TWO WASHINGTON VOICES ARE NINA TOTENBERG AND COKIE ROBERTS MEG GREENFIELD RUNS THE WASHINGTON POST'S EDITORIAL PAGE THE JOURNAL'S EDITORIAL PAGE PRINTS A SLIGHTLY GREATER SHARE OF ARTICLES SUBMITTED BY WOMEN THAN BY MEN THE ASSISTANT EDITOR HERE IS MELANIE KIRKPATRICK DOROTHY RABINOWITZ AND MANUELA HOELTERHOFF ALSO WRITE WHY THEN THOSE PERCENTAGES ONE REASON IS THAT AGE THANK HEAVEN STILL HAS SOME AUTHORITY AND MANY OLDER WOMEN UNFORTUNATELY DIDN'T GET THE EXPERIENCE THAT YIELDS A PUNDIT ANOTHER IS ONE THAT MIGHT FIT IN WITH MS WOLF'S ARGUMENT ALTHOUGH NOT AS SHE MEANS IT TO WOMEN ARE CIVILIZERS THEY CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON CROSSFIRE BECAUSE THEY FIND THEM UNDIGNIFIED THE OPED GAME ALTHOUGH IT TAKES PLACE IN THE TAMER PRINT WORLD CAN ALSO BE BRUTAL NOT EVERYONE LONGS TO SCRAMBLE LIKE A PIT BULL WITH HIS OR HER FELLOW OPINION MAKERS OVER A PIECE OF WEEKOLD MEAT UNFORTUNATELY SAYS MS WOLF YOU CAN'T WRITE STRONG ASSERTIVE PROSE IF YOU ARE TOO ANXIOUS ABOUT PRESERVING CONSENSUS HERE WE GET TO THE NUB OF THE PROBLEM WHOSE CONSENSUS THE CONSENSUS OF COURSE OF SECONDGENERATION FEMINISTS LIKE MS WOLF YET THIS IS A COTERIE A SMALL GROUP WHO ARE THE RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES MS WOLF AND I ATTENDED THE SAME COLLEGE IN THE SAME YEARS SO HERE I CAN SPEAK WITH AUTHORITY THE SAD FACT ABOUT THESE WOMEN IS THAT THEIR CONSENSUS IS NOT ALWAYS INTERESTING WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS PASSIVE BUT INSTITUTIONALIZED DISCRIMINATION IN MS WOLF'S WORDS THEY DO SO BECAUSE THAT IS WHAT THAT LIMITED CONSENSUS TELLS THEM IS THEIR ISSUE PRECHILDBEARING WOMANHOOD PER SE IS NOT HOWEVER THE NUMBERONE ISSUE FOR A LARGE GROUP A GROUP INCLUDING ALL AGES AND BOTH SEXES FOR THOSE PEOPLE WE DO PRINT ARTICLES ARTICLES THAT INDEED OCCASIONALLY HAVE FEMALE AUTHORS ON HEALTH CARE ELIZABETH MCCAUGHEY ON NORTH KOREA'S BOMB HEATHER WILSON ON JUVENILE DELINQUENTS WITH SHOTGUNS RITA KRAMER WOLFSTYLE REVOLUTIONARY ZEAL SPITS ON SUCH WOMEN'S ACCOMPLISHMENTS FOR IT VIEWS THEM AS TRAPPED IN A CULTURAL CAGE DOMINATED BY MEN NEVER MIND GATT OR FOREIGN POLICY DOCTRINES OR PROPERTY PRICES OR WHATEVER ELSE JOURNALISTS WHO HAPPEN TO BE WOMEN CONCERN THEMSELVES WITH WRITES A WRY ANNE APPLEBAUM IN A RESPONSE TO MS WOLF WE COULD ALL CALL OURSELVES FEMINISTS ONE SEEMS TO NEED NO CREDENTIALS AND THEN EARN LOTS OF MONEY THE MOST CONCRETE DAMAGE OF WORK LIKE MS WOLF'S IS THE QUOTAIZATION OF NEWSPAPERS GROUPS LIKE WOMEN MEN & MEDIA QUANTIFY REFERENCES TO WOMEN IN PAPERS AND FEMALE BYLINES AND THEN USE THOSE FIGURES TO THREATEN THE RESULT IS LOWER QUALITY ONE OPED EDITOR FROM ANOTHER NEWSPAPER TOLD ME THAT HE GOT A WATCHDOG CALL FROM A COLLEAGUE WARNING THE PAGE HAD TOO FEW FEMALE BYLINES THE PAGE INSTANTLY INSTITUTED A 33 QUOTA BEING SURVEILLED IS UNPLEASANT HE SAID WORSE THOUGH IS THAT THE CONTENT DOESN'T MATTER AT ALL BUT SIMPLY THE GENDER OF THE BYLINE LESS DIRECT BUT AS PAINFUL IS THE DISSERVICE NEW REVOLUTIONARY FEMINISTS DO TO THE OLDER WOMEN WHO WENT BEFORE US THESE WERE THE REAL PIONEERS WOMEN WHO FOUGHT PALPABLE INJUSTICE IN THE DAYS WHEN A WOMAN'S PLACE REALLY WAS WIPING GRINDS AT THE COFFEE MACHINE MS WOLF DISDAINS JEANE KIRKPATRICK WHOSE BATTLE AT THE UN AGAINST SEXIST COMMUNISTS AND THIRD WORLD JERKS HELPED END THE COLD WAR THE AMBASSADOR'S CRIME WRITING IN AN OBJECTIVE NO UTERUS STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE FEMALE BODY THE UNHAPPY CONSEQUENCE OF ATTACKS ON NO UTERUS WRITING IS A NEW GHETTOIZATION THUS THE OLD SEXIST NEW YORK TIMES EDITORIAL PAGE FEATURED FOREIGN AFFAIRS WRITER FLORA LEWIS THE NEW SENSITIVE TIMES GIVES US ANNA QUINDLEN A DOYENNE OF MATERNAL PROSE BY MS WOLF'S OWN DESCRIPTION IS THIS PROGRESS THE TRUTH THOUGH IS THAT NEWSPAPERS WILL PRINT NO UTERUS ARTICLES ALL THE TIME BECAUSE THEY CONTAIN FACTS BECAUSE THEY EXCITE BECAUSE THEY ARE NOT MUSINGLY SOLIPSISTIC WELL RATTLE THE BARS ON YOUR CAGE NAOMI MIGHT SAY WELL I MIGHT RESPOND RATTLE THE BARS ON YOURS MISS SHLAES THE JOURNAL'S OPED EDITOR HOPES THIS ARTICLE WILL FILL SOME WOMEN QUOTAS SEE RELATED LETTERS LETTERS TO THE EDITOR STAND BY YOUR REAL WOMAN WSJ FEB 10 1994 9401180094 YY94 MM02 9402100002 940105 MOTLEY'S CREW A FERVENT LOBBYIST RALLIES SMALL BUSINESS TO BATTLE HEALTH PLAN THOUSANDS OF ENTREPRENEURS ARE SET TO CALL CONGRESS OVER FINANCING ISSUES A NAME THAT CLINTON KNOWS BY RICK WARTZMAN AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL PHOENIX JOHN MOTLEY IS SPEAKING AT THE HOLIDAY INN CROWNE PLAZA BALLROOM HERE BEFORE 200 SMALLBUSINESS OWNERS TRYING TO FIRE THEM UP FOR AN ASSAULT ON PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN HIS ENTREATY REPLETE WITH WARNINGS ABOUT PAYROLL TAXES AND BUREAUCRATS WITH TREMENDOUS POWER EVOKES ONLY A RESTLESS MUMBLING THEN OUT OF NOWHERE A SPARK HITS DRY KINDLING I HAVEN'T HEARD THE WORD SOCIALISM' USED IN ALL THIS OFFERS NANCY ROGALSKI PRESIDENT OF R&C MANUFACTURING INC A LOCAL SHEETMETAL AND MACHINETOOL FIRM WE SHOULD USE IT MAYBE IT WOULD RILE PEOPLE UP SURE ENOUGH THE WORD QUICKLY BEGINS TO ECHO FROM TABLE TO TABLE SOCIALISM SOCIALISM ENERGIZED MR MOTLEY CHIEF LOBBYIST OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS LEANS HIS BURLY FRAME CLOSER TO THE GROUP DO I BELIEVE IT'S SOCIALISM DO I AGREE WITH ALL THE OTHER THINGS YOU'RE SAYING HELL YEAH I ABSOLUTELY DO HE SAYS BUT IF I SAY THOSE THINGS REPORTERS WOULD NEVER WRITE IT YOU'RE HELPING ME EXPRESS VIEWS I CAN'T GET IN THE MEDIA BY THE TIME THE GATHERING BREAKS UP MANY OF THE ENTREPRENEURS ARE EAGER TO HELP MR MOTLEY IN HIS STRUGGLE AGAINST THE CLINTON HEALTHCARE PLAN LEAPING TO HIS FEET ONE SMALLBUSINESS OWNER DECLARES WHEN YOU GET TO WHERE THEY DON'T BELIEVE YOU JUST CALL I'LL GO DOWN TO WHEREVER I HAVE TO I'LL SEND A HANDWRITTEN LETTER ONCE AGAIN JOHN MOTLEY IS MOLDING A CONTINGENT OF DRY CLEANERS HOME BUILDERS CORNERSTORE OPERATORS AND OTHER BUSINESS OWNERS INTO A LOBBYING FORCE FORMIDABLE ENOUGH TO SEND MANY A LAWMAKER SCRAMBLING FOR COVER WITH SOME 607000 MEMBERS STRETCHED ACROSS EVERY CONGRESSIONAL DISTRICT IN THE COUNTRY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS HAS MADE ITSELF INTO ONE OF THE PREEMINENT GRASSROOTS LOBBYING POWERS IN WASHINGTON WHEN YOU WALK MAIN STREET AS MOST MEMBERS OF CONGRESS DO ALMOST EVERY BUSINESS HAS AN NFIB STICKER ON THE DOOR SAYS REP MIKE SYNAR AN OKLAHOMA DEMOCRAT MR MOTLEY CALLS ON THIS LEGION TO WRITE LETTERS MAKE PHONE CALLS AND VISIT CAPITOL HILL TO PRESSURE LAWMAKERS ABOUT 40000 NFIB MEMBERS ARE PARTICULARLY ACTIVE A CORE GROUP KNOWN AS THE GUARDIANS SOME LOBBYISTS MAKE THEIR REPUTATION BECAUSE THEY KNOW DANNY ROSTENKOWSKI PERSONALLY OR THEY PLAY TENNIS WITH GEORGE MITCHELL SAYS BEERINDUSTRY LOBBYIST DAVID REHR REFERRING TO THE HOUSE WAYS AND MEANS CHAIRMAN AND THE SENATE MAJORITY LEADER JOHN'S NOT LIKE THAT HE GETS HIS STRENGTH FROM BEING ABLE TO GET TENS OF THOUSANDS OF PEOPLE ACROSS THE COUNTRY TO DO SOMETHING FOR HIM SHARPTONGUED AND ENERGETIC ENOUGH TO PLAY TENNIS UNTIL 11 PM ONE NIGHT AND THEN THREE MORE SETS AT SIX THE NEXT MORNING THE 49YEAROLD MR MOTLEY HAS COME TO PERSONIFY THE FEDERATION HE TOILS FOR HE PRACTICALLY HAS NFIB' STAMPED ON HIS HINDQUARTERS SAYS FORMER REP MIKE MCKEVITT A COLORADO REPUBLICAN WHO ONCE RAN THE GROUP'S LOBBYING OPERATION THE NFIB IS THE NATION'S BIGGEST SMALLBUSINESS GROUP AND THOSE WHO DON'T SHARE ITS VIEWS FEEL MR MOTLEY'S WRATH I DON'T TAKE KINDLY TO PEOPLE WHO SAY THEY'RE OUR FRIENDS AND THEN VOTE AGAINST ME HE SAYS MR MOTLEY SPEARHEADED INTENSE NFIB OPPOSITION THAT HELPED DEFEAT TWO CHAIRMEN OF THE SENATE SMALL BUSINESS COMMITTEE IN THEIR REELECTION BIDS REPUBLICAN LOWELL WEICKER NOW CONNECTICUT'S GOVERNOR IN 1988 AND WISCONSIN DEMOCRAT GAYLORD NELSON IN 1980 FOUR YEARS AGO THE GROUP HELPED WIN REPEAL OF A TAX LAW KNOWN AS SECTION 89 THAT FORCED COMPANIES TO PROVE THEY DISTRIBUTED EMPLOYEE BENEFITS FAIRLY NOW MR MOTLEY IS TAKING CHARGE OF HIS GROUP'S NEWEST PRIORITY KILLING THE CLINTON PROPOSAL THAT WOULD REQUIRE ALL BUSINESSES TO HELP PAY FOR THEIR EMPLOYEES' MEDICAL COVERAGE THE NFIB CONTENDS THAT THE SOCALLED EMPLOYER MANDATE WOULD DEVASTATE MANY SMALL FIRMS AND COST 15 MILLION JOBS MR MOTLEY SAYS IT IS LIKE TYING SMALL EMPLOYERS TO A SLED PUSHING THEM OFF A CLIFF AND HOPING THEY'RE UPRIGHT WHEN THEY REACH THE BOTTOM THE MEETING IN PHOENIX IS THE FIRST OF MORE THAN A DOZEN SCHEDULED TO SHARPEN THE NFIB OFFENSIVE WHEN CONGRESS TAKES UP HEALTH CARE AFTER RECONVENING JAN 25 MR MOTLEY ALSO WILL BRING SOME SMALLBUSINESS OWNERS TO WASHINGTON TO LOBBY HE HAS DESIGNATED SOME OF THE MOST DEDICATED FEDERATION MEMBERS AS A HEALTH ACTION RESPONSE TEAM SUCH SMALLBUSINESS OPPOSITION IS A HUGE THREAT TO PASSAGE OF AN EMPLOYER MANDATE THE FINANCING LINCHPIN OF THE CLINTON PLAN AFTER MR MOTLEY ATTACKED THE PLAN IN A TALK TO GOVERNORS IN TULSA OKLA LAST SEPTEMBER PRESIDENT CLINTON WAS SO IRKED THAT IN HIS SUBSEQUENT SPEECH HE CHALLENGED MR MOTLEY BY NAME MR MOTLEY IS NOT TO BE TAKEN FOR GRANTED SAYS JEFF ELLER A COMMUNICATIONS STRATEGIST FOR THE CLINTON HEALTHCARE TEAM BUT HE SAYS THE ADMINISTRATION HOPES TO GET AROUND HIM BY SHOWING BUSINESS OWNERS HOW THEY WOULD BENEFIT UNDER THE CLINTON PLAN THAT WON'T BE EASY MANY SMALLBUSINESS PEOPLE REALLY ARE AFRAID OF NEW COSTS AND REGULATIONS FOR SMALL BUSINESSES THERE'S INDEED A LOT TO FEAR FROM WASHINGTON SAYS ALLEN NEECE A LOBBYIST WHO WORKS FOR SEVERAL SMALLBUSINESS GROUPS AT THE SAME TIME THE MATERIAL THE NFIB SENDS ITS MEMBERS CONTAINS SCANT INFORMATION ABOUT THE SUBSIDIES THE CLINTON PLAN WOULD GIVE SMALL FIRMS TO HELP THEM PROVIDE WORKERS WITH HEALTH COVERAGE IN THE EYES OF MR MOTLEY'S FOES HIS IMPLACABLE POSITION ON THE MANDATE IS SYMPTOMATIC OF A BROADER TENDENCY HE DOES MORE THAN JUST FIGHT AGAINST THOSE GOVERNMENT PROPOSALS THAT SMALLBUSINESS OWNERS SHOULD TRULY BE AFRAID OF HE EAGERLY STOKES THEIR EVERY CONCERN AND THE NFIB PROFITS IN THE PROCESS JOHN AND HIS BOYS MAKE A LOT OF MONEY BY INCITING A LOT OF FEAR CHARGES REP SYNAR WHO HAS CLASHED FREQUENTLY WITH THE LOBBYIST MR MOTLEY SAYS THAT WE'RE NOT OUT INFLUENCING OUR MEMBERS' OPINIONS THE NFIB REPRESENTS SMALL BUSINESSES WHOSE SALES AVERAGE 300000 A YEAR BUT THE GROUP ITSELF HAS TURNED INTO A BIG BUSINESS DURING MR MOTLEY'S 23YEAR RISE THROUGH THE GROUP'S RANKS IT NOW PULLS IN ANNUAL REVENUE OF MORE THAN 60 MILLION RUNS A POLITICALACTION COMMITTEE THAT SPENT 785000 ON CAMPAIGN CONTRIBUTIONS AND POLITICAL EDUCATION DURING THE 199192 ELECTION CYCLE AND LEASES A SUITE OF TONY OFFICES IN THE SHADOW OF THE CAPITOL MR MOTLEY WAS PAID 138010 LAST YEAR ACCORDING TO NFIB TAX RECORDS NEARLY ALL OF THE NFIB'S MONEY COMES FROM MEMBERS' DUES WHICH AVERAGE 125 YEARLY MANY CRITICS SEE MR MOTLEY AS A DIEHARD RIGHTWINGER AND SOME SEE HIM AS A REPUBLICAN FRONT MAN BUT HIS PAST SUGGESTS SOMEONE MUCH HARDER TO LABEL HE COMES FROM A FAMILY OF LONG ISLAND UNION ACTIVISTS AND HE SAYS HE IS A REGISTERED INDEPENDENT AND HAS VOTED FOR PLENTY OF DEMOCRATS LOOK I REPRESENT A VERY POLITICALLY CONSERVATIVE GROUP OF PEOPLE HE SAYS THEY ARE RISK TAKERS THEY HAVE EVERYTHING THEY OWN AT RISK THEY ARE FISCAL CONSERVATIVES AND SO WE ARE A CONSERVATIVE BUSINESS ORGANIZATION INDEED HARDLINE STANCES ARE NOTHING NEW FOR THE FEDERATION WHICH WAS FOUNDED IN 1943 IN SAN MATEO CALIF OVER THE YEARS NFIB REPRESENTATIVES HAVE REACTED STRIDENTLY TO ISSUES RANGING FROM REGULATIONS OF THE LABOR DEPARTMENT IT OPERATES AS THE GESTAPO TO RAISING THE MINIMUM WAGE ANOTHER STEP IN THE DIRECTION OF COMPLETE GOVERNMENT CONTROLS TO THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OUR MEMBERS ARE ASKING IS THIS STILL AMERICA' WHEN HE STARTED AT THE NFIB MR MOTLEY NEVER SAW HIMSELF AS A BUSINESS LEADER WHILE STUDYING AMERICAN COLONIAL HISTORY AT GEORGETOWN IN 1970 HE JOINED THE FEDERATION HAWKING MEMBERSHIPS DOOR TO DOOR HE SOON DECIDED THAT BEING A SALESMAN WASN'T FOR HIM SO HE HAD LUNCH WITH HIS BOSS WHO MADE HIM AN INTRIGUING OFFER WOULD HE LIKE TO BECOME A LOBBYIST HIS REPLY WHAT'S A LOBBYIST BY THE MID1970S MR MOTLEY WAS BUILDING THE BASE OF THE ORGANIZATION'S POWER COMPUTERIZING THE MEMBERSHIP LIST AND TABULATING CONGRESSIONAL VOTING RECORDS THE NFIB BEGAN GIVING LAWMAKERS WHO FREQUENTLY SUPPORT ITS POSITIONS GUARDIAN OF SMALL BUSINESS AWARDS NOW AN NFIB VICE PRESIDENT MR MOTLEY OFTEN WORKS IN HIS WASHINGTON OFFICE DECIDING HOW TO DEPLOY HIS TROOPS WITH A FEW COMPUTER STROKES HE CAN SELECT WHICH MEMBERS TO MARSHAL WITHIN HOURS OF SENDING OUT AN ACTION ALERT HE CAN HAVE ANY REPRESENTATIVE'S OR SENATOR'S OFFICE INUNDATED WITH PHONE CALLS AND CONSTITUENT LETTERS ALL I NEED IS 20000 MEMBERS WHO WANT TO BE INVOLVED AND I CAN TURN THIS TOWN INSIDE OUT HE ASSERTS THAT IS JUST WHAT HAPPENED DURING THE YEARSLONG FIGHT OVER FAMILYLEAVE LEGISLATION WHICH THE NFIB PLAYED A PRIME ROLE IN KILLING DURING THE BUSH ADMINISTRATION MR MOTLEY SAYS IT WAS AN OVERARCHING CONCERN ABOUT GOVERNMENT MEDDLING THAT SPURRED THE NFIB TO FIGHT THE BILL REQUIRING FIRMS TO OFFER UNPAID LEAVE SO WORKERS COULD CARE FOR NEWBORNS NEWLY ADOPTED CHILDREN AND SERIOUSLY ILL FAMILY MEMBERS AT ONE POINT NFIB MEMBERS SENT SEN ORRIN HATCH 500 LETTERS A WEEK SO WORRIED WAS THE GROUP THAT THE UTAH REPUBLICAN MIGHT REVERSE HIS OPPOSITION TO THE BILL IN MISSOURI MEMBERS TOLD SOME FINANCIAL BACKERS OF GOP SEN CHRISTOPHER BOND THAT HE WAS WORKING AGAINST THEIR INTERESTS BY PUSHING COMPROMISE LEGISLATION SEN BOND TOLD AIDES HE HAD NEVER SEEN SUCH HARDBALL TACTICS DEMOCRATIC REP PAT SCHROEDER OF COLORADO SAYS SHE FOUGHT THE NFIB FOR YEARS OVER FAMILY LEAVE EVEN THOUGH THE LEGISLATION WOULD AFFECT ONLY FIRMS WITH 50 OR MORE EMPLOYEES AND THEREFORE SPARED 95 OF THE MOMANDPOP BUSINESSES THAT MAKE UP MR MOTLEY'S MEMBERSHIP I WENT OVER TO DO A FORUM ON FAMILY LEAVE FOR SMALL BUSINESSES AND EVERYBODY WAS SCREAMING AND YELLING AT ME SHE RECALLS I TOLD THEM IT DIDN'T AFFECT THEM BUT THEY WOULDN'T LISTEN TO ME THEY WERE LISTENING TO HIM DESPITE MR MOTLEY'S EFFORTS EARLY LAST YEAR CONGRESS PASSED THE BILL AND MR CLINTON PROMPTLY SIGNED IT INTO LAW THE STRUGGLE WAS A HARBINGER OF COMING NFIB BATTLES WITH THE NEW ADMINISTRATION BUT MR MOTLEY SAYS HE DOESN'T PICK THE BATTLES HIMSELF STRESSING THAT HE ABIDES BY ONE RULE BEFORE HE ACTS HE ASKS UNDER HIS DIRECTION THE FEDERATION SPENDS 600000 A YEAR TO POLL MEMBERS ON POLICY MATTERS EVERY EIGHT WEEKS IT THEN SENDS THE RESULTS BUSINESS BY BUSINESS TO ALL 535 CONGRESSIONAL OFFICES LAYING OUT THE VIEWS OF TENS OF THOUSANDS OF ENTREPRENEURS IS ONE OF THE MOST EFFECTIVE WAYS ANYBODY COULD LOBBY SAYS REP CHARLES STENHOLM A DEMOCRAT FROM TEXAS YET CRITICS CONTEND MANY OF THE SURVEYS ARE SLANTED FOR INSTANCE IN A BRIEF POLL THE GALLUP ORGANIZATION CONDUCTED FOR THE NFIB IN SEPTEMBER TO MEASURE MEMBERS' INITIAL GENERAL RESPONSE TO THE HEALTHCARE PLAN 84 OF THOSE QUESTIONED OPPOSED A REQUIREMENT THAT THEY PAY THE BULK OF THE COST OF THEIR WORKERS' HEALTH COVERAGE AMONG THAT 84 ONLY ONETHIRD SAID THEY WOULD LESSEN THEIR OPPOSITION IF THEY GOT A GOVERNMENT SUBSIDY BUT ROBERT BLENDON A POLLING EXPERT AT THE HARVARD SCHOOL OF PUBLIC HEALTH SAYS THE SURVEY DIDN'T GIVE RESPONDENTS ENOUGH DETAIL ON HOW GENEROUS THE SUBSIDIES WOULD BE THEY'RE NOT PLAYING FAIR BALL HERE SAYS MR BLENDON WHO REVIEWED THE POLLING MATERIAL FOR THIS NEWSPAPER SMALLBUSINESS PEOPLE DON'T LIKE MANDATES IN GENERAL I AGREE WITH THEM BUT WHEN THOSE BUSINESS OWNERS SEE THE SIZE OF THE SUBSIDY YOU'RE TALKING ABOUT IT CHANGES THEIR MINDS UNDER THE CLINTON PLAN THE SMALLEST LOWESTWAGE FIRMS WOULD SPEND NO MORE THAN 35 OF PAYROLL FOR ALL OF THEIR WORKERS TO RECEIVE GUARANTEED MEDICAL COVERAGE ONCE THE SUBSIDIES ARE FIGURED IN THE RISE IN HEALTHCARE COSTS FOR MANY SMALL FIRMS WOULD BE THE EQUIVALENT OF AN INCREASE IN THE MINIMUM WAGE OF 15 CENTS TO 35 CENTS AN HOUR DESPITE THE NFIB'S POLLING MR ELLER OF THE CLINTON HEALTHCARE TEAM CONTENDS THAT MR MOTLEY AND THE LEADERSHIP OF THE NFIB HAVE BECOME VERY OUT OF TOUCH WITH THEIR MEMBERSHIP MR ELLER SAYS THAT WHEN THE SMALL BUSINESS ADMINISTRATION HELPS OWNERS FIGURE WHAT THEIR MEDICAL COSTS WOULD BE UNDER THE CLINTON PLAN MANY ARE SURPRISED AT HOW WELL THEY WOULD DO THEIR REACTION OFTEN IS I DIDN'T KNOW THAT THE NFIB DIDN'T TELL ME THAT' MR ELLER SAYS MR MOTLEY ISN'T BACKING DOWN I DON'T CARE WHAT THE SUBSIDY SCHEME IS HE SAYS THIS IS THE GOVERNMENT TAKING TOTAL AND COMPLETE CONTROL AND MR ELLER'S COMMENTS NOTWITHSTANDING IT IS CLEAR THAT MANY OF MR MOTLEY'S CONSTITUENTS AGREE WITH HIS STANCE I HAVE NO CHOICE BUT TO START CONTACTING CONGRESS SAYS BRIAN PINNEY THE OWNER OF CORPORATE CLEANING INC AN ARIZONA OFFICEMAINTENANCE COMPANY THIS THING WOULD RADICALLY CHANGE THE WAY I DO BUSINESS ALTHOUGH MR MOTLEY'S STRENGTH COMES FROM OUTSIDE THE BELTWAY HE KNOWS HIS WAY AROUND THE INSIDE ON CAPITOL HILL HE IS AS GOOD A VOTE COUNTER AS I'VE EVER SEEN REP MCKEVITT SAYS PERHAPS MOST IMPORTANT IN WASHINGTON TERMS HE HAS ACCESS IN JUNE MR MOTLEY AND NFIB PRESIDENT JACKSON FARIS WERE USHERED INTO THE OVAL OFFICE FOR A FEW MINUTES WITH MR CLINTON TO DISCUSS NFIB OPPOSITION TO THE CLINTON ECONOMIC PLAN MR MOTLEY ALSO HAS BEEN TRYING TO FORGE ALLIANCES WITH OTHER GROUPS IN NOVEMBER HE MET WITH JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION WHICH HAD BEEN IN FAVOR OF AN EMPLOYER MANDATE WE DIDN'T WANT TO GO TO WAR WITH THE NFIB OVER THE MANDATE MR TODD SAYS IN DECEMBER RESPONDING TO PRESSURE FROM ITS OWN MEMBERSHIP THE AMA ANNOUNCED IT WOULD BE OPEN TO OTHER FINANCING IDEAS MEANTIME THE NFIB IS THROWING ITS SUPPORT BEHIND ALTERNATIVE HEALTHCARE PLANS INCLUDING THOSE BY DEMOCRATIC REP JIM COOPER OF TENNESSEE AND GOP SEN JOHN CHAFEE OF RHODE ISLAND THAT DON'T INCLUDE AN EMPLOYER MANDATE MR MOTLEY WAS SO IMPASSIONED ABOUT A MANDATE THAT EARLIER THIS YEAR HE TURNED DOWN AN INVITATION TO EVEN APPEAR BEFORE HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE IN AUGUST NEW YORK REP JOHN LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE FINALLY GOT MR MOTLEY AND MRS CLINTON TOGETHER FOR A CHAT IT WAS PLEASANT ENOUGH MR MOTLEY EVEN RECOMMENDED A COUPLE OF RESTAURANTS TO HER BUT THEY DIDN'T MAKE MUCH HEADWAY ON RESOLVING THEIR SHARP DIFFERENCES WEEKS LATER MR MOTLEY GOT A SIGNED PHOTOGRAPH FROM THE MEETING SHOWING HIM REP LAFALCE AND MRS CLINTON STANDING HUDDLED TOGETHER HANDS CLASPED AS HE READ THE INSCRIPTION HE COULDN'T HELP BUT BE TAKEN ABACK WITH BEST WISHES THAT WE WILL SOLVE THE HEALTHCARE CHALLENGE TOGETHER MRS CLINTON WROTE I THOUGHT I SHOULD VERIFY THE HANDWRITING MR MOTLEY SAYS I THOUGHT MAYBE LAFALCE WAS PLAYING A JOKE ON ME SEE RELATED LETTERS LETTERS TO THE EDITOR WE WANT GOVERNMENT OUT OF OUR LIVES WSJ FEB 10 1994 9401050005 YY94 MM02 9402090195 940209 INTERNATIONAL TOYOTA REPORTS LOWER PRETAX PROFIT IN FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP REPORTED A STEEP DECLINE IN EARNINGS FOR ITS FISCAL FIRST HALF BUT MANAGED TO AVOID POSTING ITS FIRST OPERATING LOSS IN DECADES THROUGH SOME AGGRESSIVE COSTCUTTING THE RESULTS BATTERED BY THE STRONG YEN AND WEAK DOMESTIC SALES WERE IN LINE WITH ANALYSTS' EXPECTATIONS PRETAX PROFIT SKIDDED 49 TO 8324 BILLION YEN 7654 MILLION IN THE SIX MONTHS ENDED DEC 31 FROM 16234 BILLION YEN A YEAR EARLIER NET INCOME FELL 46 TO 3944 BILLION YEN OR 1059 YEN A SHARE FROM 7234 BILLION YEN OR 1943 YEN A SHARE SALES WERE DOWN 13 AT 3988 TRILLION YEN FROM 4564 TRILLION YEN A YEAR EARLIER THE COMPANY LEFT ITS DIVIDEND UNCHANGED AT NINE YEN A SHARE TOYOTA SAID THE DOWNTURN IN ITS EARNINGS IS EXPECTED TO CONTINUE IN THE SECOND HALF WHICH ENDS JUNE 30 AMID THE PROLONGED RECESSION IN MAJOR CONSUMING COUNTRIES THE COMPANY'S PRETAX PROFIT FOR THE FULL FISCAL YEAR IS PROJECTED TO SHRINK 30 FROM A YEAR EARLIER TO 200 BILLION YEN BREAKING DOWN THE SIXMONTH OPERATING RESULTS MASAMI IWASAKI VICE CHAIRMAN SAID THE YEN'S RISE AGAINST THE DOLLAR WAS RESPONSIBLE FOR A DROP OF ROUGHLY 100 BILLION YEN WHILE LOWER SALES RESULTED IN A FALL OF 50 BILLION YEN ON THE OTHER HAND THE COMPANY MANAGED TO SAVE SOME 1011 BILLION YEN BY CUTTING COSTS AND REDUCING DEPRECIATION EXPENSES LIMITING THE DECREASE IN THE OPERATING PROFIT 9402090193 940209 SMALL STOCK FOCUS RUSSELL 2000 AND NASDAQ COMPOSITE RECLAIM SOME GROUND LOST ON FRIDAY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS GATHERED STEAM AS THE SESSION UNFOLDED POSTING SHARP GAINS AFTER MOVING UP ONLY MODESTLY MONDAY THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES CLIMBED 171 OR 065 TO FINISH AT 26339 ON MONDAY THE RUSSELL 2000 ADDED JUST 001 POINT ON FRIDAY IT TUMBLED 59 POINTS NASDAQ ISSUES SAW ACROSSTHEBOARD BUYING THE NASDAQ COMPOSITE INDEX ADDED 35 POINTS OR 045 TO 7827 MOVING STEADILY HIGHER ALL DAY ON MONDAY THE INDEX EDGED UP 192 POINTS FOLLOWING ITS 2051POINT SLIDE FRIDAY THE DOW JONES INDUSTRIAL AVERAGE FELL 029 POINT TO 390603 FOLLOWING MONDAY'S 35POINT GAIN WHICH RECLAIMED SOME OF FRIDAY'S 96POINT PLUNGE TRADERS SAID SMALLER ISSUES WERE DUE FOR A BOUNCE YESTERDAY AFTER RISING ONLY SLIGHTLY MONDAY WHILE CYCLICAL ISSUES ENJOYED A MORE DRAMATIC RALLY ECONOMICALLY SENSITIVE ISSUES SLIPPED SLIGHTLY AS BOND PRICES SLUMPED THE BOOKTOBILL RATIO FALLING WITHIN EXPECTATIONS FOR A FLAT TO SLIGHTLY HIGHER READING ROSE TO 107 FOR JANUARY UP FROM DECEMBER'S 104 TECHNOLOGY ISSUES ALSO ROSE YESTERDAY AFTER SLIDING PRECIPITOUSLY FRIDAY ADVANCING NASDAQ ISSUES LED DECLINERS 1627 TO 1388 ON NASDAQ NATIONAL MARKET VOLUME OF 2626 MILLION SHARES DOWN FROM MONDAY'S VOLUME OF 3237 MILLION SHARES TOTAL VOLUME SLIPPED TO 3099 MILLION SHARES FROM MONDAY'S 370 MILLION SHARES AMONG TECHNOLOGY GAINERS WAS AMERICA ONLINE WHICH PICKED UP 3 TO 73 1/2 AFTER SURGING 5 3/4 ON MONDAY LATE MONDAY THE VIENNA VA PROVIDER OF ONLINE SERVICES SAID IT ENTERED A STRATEGIC ALLIANCE UNDER WHICH IT WILL OFFER NBC ONLINE OVER ITS SERVICE SIERRA ONLINE OAKHURST CALIF JUMPED 3 3/8 TO 22 7/8 THE COMPANY SAID THE PRELIMINARY RESULTS OF ITS CORE SOFTWAREPUBLISHING BUSINESS SHOW THAT FISCAL THIRDQUARTER REVENUE ROSE TO 267 MILLION FROM A YEAREARLIER 176 MILLION GENERAL DATACOMM INDUSTRIES A MIDDLEBURY CONN COMMUNICATIONSSYSTEMS COMPANY ROSE 2 5/8 TO 16 ON THE NEW YORK STOCK EXCHANGE SALOMON BROTHERS PUT AN INITIAL BUY ON THE COMPANY'S SHARES SAYING IT IS WELL POSITIONED TO ACHIEVE ABOVEAVERAGE EARNINGS GROWTH THE BROKERAGE FIRM ADDED THAT THE STOCK PRICE DOESN'T FULLY REFLECT GENERAL DATACOMM'S STRONG FUNDAMENTALS AND FAVORABLE LONGTERM OUTLOOK COMPUTER NETWORK TECHNOLOGY SLID 1 1/4 TO 9 THE MAPLE GROVE MINN NETWORKINGPRODUCTS CONCERN SAID ITS FOURTHQUARTER EARNINGS DROPPED TO NINE CENTS A SHARE ON MORE SHARES OUTSTANDING FROM A YEAREARLIER 13 CENTS A SHARE ELSEWHERE ON THE EARNINGS FRONT EVERGREEN HEALTHCARE INDIANAPOLIS ADDED 1 5/8 TO 10 1/2 ON THE BIG BOARD IT REPORTED FISCAL SECONDQUARTER EARNINGS OF 22 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 89 CENTS A SHARE SWIFT ENERGY HOUSTON JUMPED 1 1/8 TO 11 1/4 ON THE BIG BOARD AFTER SAYING ITS GAS AND OIL RESERVES ROSE 53 LAST YEAR TO 90 BILLION CUBIC FEET OF NATURALGAS EQUIVALENT ON THE AMERICAN STOCK EXCHANGE REGENCY HEALTH SERVICES GAINED 1 5/8 TO 15 3/4 AFTER ALEX BROWN & SONS ANALYST DEBBIE LAWSON SAID SHE ADDED THE COMPANY TO THE BROKERAGE FIRM'S EMPHASIS LIST MS LAWSON MAINTAINS HER STRONG BUY RECOMMENDATION ON THE NEWPORT BEACH CALIF OPERATOR OF SKILLEDNURSING FACILITIES EDUCATION ALTERNATIVES FELL 4 TO 29 3/8 THE MINNEAPOLIS PROVIDER OF SCHOOLMANAGEMENT AND CONSULTING SERVICES SAID IT WILL CHANGE HOW IT ACCOUNTS FOR REVENUE AND EXPENSES IN CONNECTION WITH ITS LATEST BALTIMORE PUBLICSCHOOLSYSTEM CONTRACT THE CHANGE WILL LOWER THE REVENUE AND EXPENSES REPORTED BY THE COMPANY ON THE CONTRACT STAODYN FELL 1 13/32 OR 25 TO 4 11/32 THE LONGMONT COLO DESIGNER OF ELECTROTHERAPEUTIC DEVICES SAID IT RECEIVED A LETTER FROM THE FOOD AND DRUG ADMINISTRATION SUGGESTING THAT A NEW CLINICAL STUDY WOULD BE REQUIRED BEFORE THE FDA WOULD FAVORABLY CONSIDER ITS PREMARKET APPROVAL APPLICATION FOR US MARKETING OF THE COMPANY'S DERMAPULSE WOUNDTREATMENT PROGRAM NEW ISSUES MEANWHILE ENJOYED A BANNER DAY WEBCO INDUSTRIES SAND SPRINGS OKLA CLIMBED TO 16 ABOVE ITS MONDAY OFFERING PRICE OF 14 THE MAKER OF CARBONSTEEL AND STAINLESSSTEEL TUBING AND PIPE SAID PROCEEDS WILL BE USED TO REPAY DEBT TRISM FORT WORTH TEXAS JUMPED TO 17 1/4 FROM ITS OFFERING PRICE OF 14 AFTER MONDAY'S CLOSE THE TRUCKING FIRM SAID PROCEEDS ARE EXPECTED TO GO TOWARD DEBT REPAYMENT AND THE PURCHASE OF REVENUE EQUIPMENT INTERCEL LANETT ALA ROSE TO 9 1/4 FROM ITS OFFERING PRICE OF 8 1/4 AFTER MONDAY'S CLOSE THE PROVIDER OF CELLULAR TELECOMMUNICATIONS SERVICES IN GEORGIA AND ALABAMA SAID IT WILL USE PROCEEDS TO REDUCE DEBT ASSOCIATED WITH ITS MERGER WITH UNITY CELLULAR SYSTEMS SPECTRUM INFORMATION TECHNOLOGIES A WIRELESSCOMMUNICATIONS COMPANY HEADQUARTERED IN MANHASSET NY LED THE NASDAQ MOSTACTIVES LIST FOR THE SECOND STRAIGHT SESSION SHARES OF THE COMPANY FINISHED UP 5/16 TO 2 9/16 ON VOLUME OF 108 MILLION SHARES UP FROM AVERAGE DAILY VOLUME OF 21 MILLION ON MONDAY SPECTRUM PLUNGED 3 5/16 TO 2 1/4 ON NEWS OF THE RESIGNATION OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN SCULLEY LOOKING AHEAD AT MARKET PERFORMANCE OVER SEVERAL WEEKS GREG KUHN OF KUHN ASSET MANAGEMENT SAID HE EXPECTS THE OVERALL MARKET INCLUDING SMALLER ISSUES TO DO SOME CHURNING LIKELY RETESTING LOWS BUT DURING MARCH HE SAID HE EXPECTS MARKET BAROMETERS TO SURPASS THEIR HIGHS PERHAPS RISING 5 TO 7 OVER THE NEXT FEW MONTHS ENOUGH SKEPTICISM EXISTS TO KEEP THE BULL MARKET ALIVE MR KUHN ADDED BUT THE BULLISH PROP FOR THE MARKET LOW SHORTTERM RATES HAS BEEN REMOVED ONCE INVESTOR OPTIMISM RETURNS STOCK PRICES COULD START TO CORRECT SIGNIFICANTLY HE SAID 9402090192 940209 WHO'S NEWS LEGENT CORP LEGENT CORP HERNDON VA MARK T WASILKO 40 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE MARKETING OF THIS SOFTWARE AND SERVICES PROVIDER SUCCEEDING DICK MCGLINCHEY WHO TEMPORARILY HELD THAT POSITION SINCE JULY AND WHO PLANS TO LEAVE THE COMPANY NEXT MONTH MR WASILKO WAS FORMERLY SENIOR VICE PRESIDENT CORPORATE MARKETING AT COMPUTER ASSOCIATES INTERNATIONAL INC 9402090190 940209 SEARS REPORTS FOURTHPERIOD NET INCOME OF 5446 MILLION BELOW SOME FORECASTS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO REPORTED A TURNAROUND FOR THE FOURTH QUARTER FROM A YEAREARLIER LOSS BUT ITS PROFIT FELL SHORT OF SOME ANALYSTS' EXPECTATIONS BECAUSE OF PRICE CUTTING AND HIGHER ADVERTISING EXPENSES DURING THE CHRISTMAS SHOPPING PERIOD THE US'S THIRDLARGEST RETAILER SAID NET INCOME WAS 5446 MILLION OR 139 A SHARE SWINGING FROM THE YEAREARLIER NET LOSS OF 18 BILLION OR 484 A SHARE THE 1992 RESULTS INCLUDED CHARGES OF 242 BILLION TO ACCOUNT FOR RESTRUCTURING POSTRETIREMENT BENEFITS AND HURRICANE ANDREW COSTS AND A GAIN OF 1051 MILLION FROM DISCONTINUED OPERATIONS EXCLUDING THOSE ITEMS SEARS HAD PROFIT OF 504 MILLION IN THE 1992 FOURTH PERIOD ANALYSTS HAVE BEEN TREATED TO A CONSTANT STREAM OF GOOD NEWS FROM THE BIG RETAIL AND INSURANCE CONCERN OVER THE PAST YEAR AND WERE EXPECTING SLIGHTLY HIGHER FOURTHQUARTER PROFIT IN ALL BUT THE FOURTH QUARTER OF 1993 SEARS'S EARNINGS SIGNIFICANTLY BESTED ANALYSTS' FORECASTS THE REPORT OF EARNINGS BELOW FORECASTS SENT SEARS SHARES DOWN 325 OR 64 TO 4775 IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BUT SOME ANALYSTS WEREN'T DISTURBED BY THE RESULTS I DIDN'T SEE ANYTHING IN SEARS'S EARNINGS REPORT THAT WAS TOO TERRIBLE SAID KAREN SACK OF STANDARD & POOR'S CORP SHE HAD BEEN EXPECTING FOURTHQUARTER EARNINGS OF 142 A SHARE THREE CENTS HIGHER THAN THE FIGURE SEARS REPORTED THEY STILL DID WELL SHE SAID FOR ALL OF 1993 SEARS REPORTED RECORD NET INCOME OF 237 BILLION OR 613 A SHARE COMPARED WITH A NET LOSS IN 1992 OF 393 BILLION OR 1072 A SHARE THOSE RESULTS INCLUDED GAINS IN 1993 OF 635 MILLION FROM ITS ALLSTATE CORP'S INITIAL PUBLIC OFFERING AND 761 MILLION FROM TAX ACCOUNTING CHANGES AND 1992 CHARGES AGAINST EARNINGS TOTALING 548 BILLION REVENUE FELL 29 TO 5084 BILLION FROM 5234 BILLION WE'RE ABSOLUTELY THRILLED WITH THE YEAR SAID SEARS CHAIRMAN EDWARD A BRENNAN WE'RE VERY PLEASED WITH THE FOURTH QUARTER MR BRENNAN SAID THE COMPANY'S STRONG ANNUAL PERFORMANCE RESULTED FROM THE COMPANY'S REPOSITIONING PROGRAM AND FROM RECORD EARNINGS AT ITS ALLSTATE INSURANCE SUBSIDIARY SEARS'S ALLSTATE INSURANCE UNIT REPORTED FOURTHQUARTER NET INCOME OF 259 MILLION OR 57 CENTS A SHARE COMPARED WITH A LOSS OF 139 MILLION OR 32 CENTS A SHARE ON A PROFORMA BASIS ALLSTATE BECAME A PUBLICLY TRADED COMPANY IN JUNE WHEN SEARS SOLD 20 OF ALLSTATE TO THE PUBLIC SEARS THEREFORE INCLUDED 208 MILLION OF ALLSTATE'S FOURTHQUARTER PROFIT AS ITS OWN FOR THE YEAR ALLSTATE REPORTED RECORD NET INCOME OF 130 BILLION OR 299 A SHARE COMPARED WITH A PRIOR YEAR LOSS OF 825 MILLION OR 191 A SHARE ALLSTATE OFFICIALS ATTRIBUTED THE RESULTS TO EXPENSE REDUCTION AND THE BENEFITS OF A RECAPITALIZATION SEARS'S MERCHANDISE GROUP WHICH CONSISTS OF THE STORE AND CREDITCARD OPERATIONS EARNED 3103 MILLION IN THE FOURTH QUARTER COMPARED WITH A LOSS OF 146 BILLION A YEAR EARLIER WHICH INCLUDED A 166 BILLION RESTRUCTURING CHARGE SEARS SUCCEEDED IN CUTTING COSTS IN ITS MERCHANDISE UNIT AS ITS SELLING AND ADMINISTRATIVE EXPENSES DECLINED TO 25 OF SALES IN THE QUARTER FROM 263 OF SALES A YEAR EARLIER REVENUE FOR THE DIVISION CLIMBED 11 TO 929 BILLION WHILE THE PRICECUTTING AND PROMOTIONAL COSTS MIGHT HAVE BEEN HIGHER THAN EXPECTED THEY ARE LIKELY TO HELP THE COMPANY IN THE FUTURE AS SEARS MOVES TO STRENGTHEN APPAREL SALES ANALYSTS SAY SEARS BUSINESS CONTINUES TO BE STRONG THEY CONTINUE TO GET GAINS IN APPAREL AND THEY CONTINUE TO TAKE COSTS OUT OF THEIR OPERATIONS SAID PETER SCHAEFFER AN ANALYST WITH LYNCH JONES & RYAN INC BUT AT THE SAME TIME THEY ARE BUILDING A NEW BUSINESS AND THAT'S EXPENSIVE MR BRENNAN SAID HE EXPECTS THE COMPANY TO CONTINUE TO PERFORM WELL THIS YEAR WE ESTABLISHED SIGNIFICANT MOMENTUM IN 1993 AND ARE FOCUSING OUR EFFORTS TO CONTINUE IT IN 1994 HE SAID 9402090189 940209 WHO'S NEWS NEW IMAGE INDUSTRIES INC NEW IMAGE INDUSTRIES INC CANOGA PARK CALIF ROBERT S COLMAN WAS ELECTED A DIRECTOR OF THIS DENTAL IMAGING PRODUCTS MAKER SUCCEEDING GERALD WEINER 50 YEARS OLD WHO RESIGNED FOR PERSONAL REASONS MR COLMAN 53 IS A PARTNER WITH COLMAN FURLONG & CO A PRIVATE MERCHANT BANKING FIRM 9402090188 940209 CANADIAN HOUSING STARTS FALL OTTAWA CANADIAN HOUSING STARTS DECLINED 149 IN JANUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 142500 FROM A DECEMBER RATE OF 167400 CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID THE DECLINE WAS LED BY A 306 DROP IN NEW CONSTRUCTION OF MULTIPLE HOUSING UNITS IN URBAN AREAS 9402090187 940209 WHO'S NEWS VF CORP VF CORP WYOMISSING PA URSULA FAIRBAIRN WAS ELECTED A DIRECTOR OF THIS APPAREL COMPANY INCREASING BOARD MEMBERSHIP TO 13 MS FAIRBAIRN 51 YEARS OLD IS SENIOR VICE PRESIDENT OF HUMAN RESOURCES FOR UNION PACIFIC CORP 9402090186 940209 WELCOME TO WASHINGTON WHICH MUST STAND FOR SOMETHING BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TO UNDERSTAND PRESIDENT CLINTON'S NEW BUDGET YOU NEED TO KNOW THE LINGO LEXICON OF INCOHERENT NOMENCLATURE BY GOVERNMENT OFFICIALS BUR OR BOTTOMUP REVIEW WASN'T DREAMED UP IN LAS VEGAS IT'S ABOUT CUTTING THE MILITARY AND MAKING IT FIT INTO THE POSTCOLD WAR WORLD HIDTA OR HIGH INTENSITY DRUG TRAFFICKING AREAS IS A PROGRAM AIMED AGAINST CRACK HOUSES OR DEALERS HANGING OUT ON THE STREET ISTEA PRONOUNCED ICE TEA HAS NOTHING TO DO WITH SUMMER AFTERNOONS OR RAPPERS IT STANDS FOR INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT WHICH HAS SOMETHING TO DO WITH UNSNARLING TRAFFIC JAMS AND TYING TONGUES AND IN THE CLINTON BUDGET INVESTMENT OFTEN STANDS FOR INCREASED SPENDING IF THE BUDGET STILL GETS YOU DOWN MAYBE YOU NEED A LITTLE LIFT LEVERAGED INVESTMENTS FOR TOMORROW WHICH SUBSIDIZES PRIVATE INVESTMENT IN DISTRESSED URBAN NEIGHBORHOODS NEW ACRONYMS AND WORDS COME ALONG EVERY SO OFTEN BUT IT'S THE SAME OLD THING ONLY IT SOUNDS A LITTLE ZIPPIER SAYS JAMES BOREN HEAD OF INATAPROBU THE INTERNATIONAL ASSOCIATION OF PROFESSIONAL BUREAUCRATS A SPOOF GROUP WHOSE MOTTO IS WHEN IN DOUBT MUMBLE THE JARGON HE SAYS IS ALL ABOUT TRYING TO KEEP THE PEOPLE FROM FIGURING OUT WHAT IS GOING ON IN WASHINGTON THEN AGAIN THE WHOLE THING MAY BE A TRACTOR FLOP ON THE LIST OF PROPOSED TERMINATIONS IS CHICKEN LITTLE FOLLOWON AN ARMY PROGRAM ON TRACKING MOBILE MISSILES THE BUDGET ALSO PROPOSES TO CUT SOME EMPLOYEES BUT IF YOU WORK FOR THE GOVERNMENT DON'T WORRY IT ISN'T FIRING PEOPLE OR LAYING THEM OFF IT ISN'T EVEN DOWNSIZING IT IS RIGHTSIZING 100000 POSITIONS THAT SHOULD MAKE EVERYONE FEEL BETTER 9402090185 940209 WHO'S NEWS GULFSTREAM AEROSPACE CORP GULFSTREAM AEROSPACE CORP SAVANNAH GA WW BOISTURE JR 49 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THIS CORPORATEJET MANUFACTURER A NEW POSITION MR BOISTURE WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RAYTHEON CO'S CORPORATEJETS UNIT 9402090184 940209 LETTERS TO THE EDITOR IT LOOKS LIKE A HEALTH CRISIS TO US IN THERE IS NO HEALTH CARE CRISIS EDITORIAL PAGE JAN 25 IRWIN M STELZER MISUSES AND MISQUOTES MY RESEARCH ON THE DURATIONS OF SPELLS WITHOUT HEALTH INSURANCE HE SUGGESTS I BELIEVE THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THAT IS NOT TRUE MY COLLEAGUES AND I HAVE FOUND THAT DURING THE MID1980S HALF OF ALL UNINSURED SPELLS ENDED WITHIN SIX MONTHS BUT THAT ALSO MEANS THAT HALF LASTED LONGER THAN SIX MONTHS SPECIFICALLY 28 LASTED MORE THAN ONE YEAR AND 18 LASTED MORE THAN TWO YEARS MR STELZER THEN IMPLIES I ESTIMATE THAT 55 MILLION PERSONS ARE CHRONICALLY UNINSURED THAT TOO IS NOT TRUE I ESTIMATE THAT IN 1992 ABOUT 21 MILLION AMERICANS WERE UNINSURED FOR AT LEAST A YEAR FINALLY WHEN MR STELZER MAKES LIGHT OF THE 37 MILLION PEOPLE WITHOUT HEALTH INSURANCE HE MISSTATES WHAT THE NUMBER MEANS THE FIGURE OF 37 MILLION COMES FROM POINTINTIME SURVEYS AND SO INCLUDES ONLY THOSE PEOPLE WHO WERE UNINSURED ON THE DAY THE SURVEY WAS CONDUCTED THE NUMBER OF PEOPLE UNINSURED AT SOME TIME DURING A YEAR IS SIGNIFICANTLY LARGER IN 1992 FOR EXAMPLE I ESTIMATE THAT WHILE 21 MILLION PEOPLE WERE UNINSURED FOR THE ENTIRE YEAR ANOTHER 37 MILLION WERE UNINSURED FOR SPELLS OF ONE TO 11 MONTHS THUS THERE WERE 58 MILLION AMERICANS AT RISK FOR MEDICAL CARE BILLS FOR AT LEAST PART OF 1992 58 MILLION AMERICANS WITHOUT HEALTH INSURANCE FOR SOME PORTION OF A YEAR IS A SIGN OF A HEALTH CARE CRISIS IN THIS COUNTRY MR STELZER MAKES SOME EXCELLENT POINTS HOWEVER HE DOES NOT MENTION THE MAJOR REASON HEALTH CARE COSTS HAVE RISEN FROM 5 OF GNP TO 14 FEW CONSUMERS OF HEALTH CARE NOW PAY FOR THEIR CARE DIRECTLY AND NO ONE SPENDS SOMEONE ELSE'S MONEY THE EMPLOYER'S THE INSURANCE COMPANY'S OR THE GOVERNMENT'S AS CAREFULLY AS HE OR SHE SPENDS HIS OR HER OWN I PREDICT THAT IF MEDISAVE ACCOUNTS PLUS HIGHDEDUCTIBLE CATASTROPHIC INSURANCE POLICIES REPLACED PRESENT EMPLOYER MEDICARE AND MEDICAID HEALTH COVERAGE HEALTH CARE COSTS WOULD BE MORE THAN CUT IN HALF AS A FRACTION OF GNP MY RECENT RESEARCH SHOWS THAT 56 OF THE UNINSURED AT A POINT IN TIME WILL BE UNINSURED FOR MORE THAN TWO YEARS AND 77 WILL BE UNINSURED FOR MORE THAN ONE YEAR THIS SUGGESTS THAT OF THE 37 MILLION UNINSURED AT A POINT IN TIME BETWEEN 21 MILLION AND 29 MILLION PEOPLE ARE CHRONICALLY UNINSURED THESE NUMBERS ARE MUCH HIGHER THAN THE ESTIMATES OF FIVE MILLION TO 11 MILLION CHRONICALLY UNINSURED OFTEN CITED IN THE PRESS MR STELZER AND OTHERS HAVE ALSO TRIED TO DISMISS THE UNINSURED PROBLEM BY CLAIMING THAT THE CHRONICALLY UNINSURED HAVE EITHER HIGH INCOMES OR ARE YOUNG PEOPLE WHO VOLUNTARILY DECLINE HEALTH COVERAGE MY DATA SUGGEST THE PROBLEM CANNOT BE DISMISSED SO EASILY ONLY 14 OF THE CHRONICALLY UNINSURED HAVE INCOMES ABOVE THREE TIMES THE POVERTY LINE AND ONLY 16 OF THE UNINSURED FALL INTO THE 1824 AGE GROUP THAT MIGHT BE DECLINING COVERAGE BECAUSE IT IS NOT NEEDED IN FACT WITH ONLY A FEW MINOR EXCEPTIONS THE CHARACTERISTICS OF THE CHRONICALLY UNINSURED ARE VERY SIMILAR TO THOSE OF THE UNINSURED WHO ARE UNINSURED FOR A SHORTER TIME A MAJORITY OF THE UNINSURED ARE WORKING OR IN A FAMILY WHERE SOMEONE IS WORKING AND HAVE INCOMES BELOW 150 OF THE POVERTY LINE IF THERE IS ANY TYPICAL UNINSURED FAMILY IT IS PROBABLY A WORKING POOR FAMILY WHOSE BREADWINNER WORKS FOR AN EMPLOYER WHO DOES NOT PROVIDE INSURANCE AND MANY OF THESE PEOPLE NEED HEALTH INSURANCE BECAUSE OF MOUNTING HEALTH BILLS 9402090183 940209 NASDAQ MOVES TO LIFT LIMITS ON REPORTING PRICES OF STOCK TRADES WASHINGTON NASDAQ IS MOVING QUICKLY TO LIFT LIMITATIONS ON REPORTING STOCK TRADES IN SIXTEENTHS OF A DOLLAR ACCORDING TO THE CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE MOVE EXPECTED TO BE CONSIDERED BY THE NASD BOARD AS EARLY AS NEXT MONTH COMES IN RESPONSE TO A SPECIFIC RECOMMENDATION IN THE RECENT MARKET 2000 REPORT BY THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION THE STAFF SUGGESTED REPORTING STOCK TRADES IN SIXTEENTHS RATHER THAN THE TRADITIONAL EIGHTHS OF A DOLLAR AS AN INTERIM STEP TOWARD EVENTUAL DECIMALIZATION OR REPORTING IN TENTHS OF A DOLLAR NASDAQ NOW ALLOWS TRADES IN STOCKS VALUED AT 10 A SHARE OR LESS TO BE REPORTED IN SIXTEENTHS RATHER THAN EIGHTHS TRADES ABOVE 10 A SHARE MUST BE REPORTED IN EIGHTHS THE NASD BOARD WILL BE ASKED TO DO AWAY WITH THE 10 CEILING AT ITS MEETINGS IN MARCH AND MAY NASD CHAIRMAN JOSEPH HARDIMAN SAID THE CHANGE WOULD HAVE TO BE APPROVED BY THE SEC MR HARDIMAN SAID THE NASDAQ SHIFT TO REPORTING IN SIXTEENTHS WOULD MORE ACCURATELY REFLECT THE LARGE NUMBER OF INSTITUTIONAL TRADES THAT ARE NEGOTIATED IN SIXTEENTHS BUT ROUNDED UP TO THE NEXT EIGHTH FOR REPORTING PURPOSES SEPARATELY THE SEC IS SCHEDULED TO CONSIDER ANOTHER MARKET 2000 RECOMMENDATION AT ITS MEETING TODAY THE STAFF HAS SUGGESTED THAT THE AGENCY REQUIRE BROKERS WHO OPERATE AUTOMATED TRADING SYSTEMS TO KEEP RECORDS OF PARTICIPANTS VOLUME AND TRANSACTIONS THE SEC WILL ALSO CONSIDER AN UNRELATED RULE REQUIRING LARGE SECURITIES TRADERS TO REGISTER ANNUALLY WITH THE SEC AND REQUIRING BROKERS TO KEEP RECORDS OF THE LARGE TRADERS' ACCOUNTS THAT WOULD BE AVAILABLE TO THE AGENCY LARGE TRADERS WOULD FILE ANNUALLY WITH THE SEC AND REPORT THEIR IDENTITY AND ACCOUNTS THE SEC SAID 9402090182 940209 WHO'S NEWS NEW JERSEY RESOURCES CORP NEW JERSEY RESOURCES CORP WALL TOWNSHIP NJ JOE B FOSTER 59 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEWFIELD EXPLORATION CO AND CHARLES G STALON 64 AN INDEPENDENT CONSULTANT AND SENIOR ECONOMIST AT THE ARGONNE NATIONAL LABORATORY WERE BOTH NAMED DIRECTORS OF THIS NATURALGAS DISTRIBUTION AND EXPLORATION COMPANY INCREASING THE BOARD TO 13 9402090181 940209 INTERNATIONAL PARIS APPEARS SET TO BAIL OUT CREDIT LYONNAIS RECAPITALIZATION PROPOSAL VALUED AT 677 MILLION ANGERS OTHER BANKS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS TO THE FURY OF RIVAL BANKS THE FRENCH GOVERNMENT APPEARS SET TO RIDE TO THE RESCUE OF CREDIT LYONNAIS THE STATEOWNED BANKING COLOSSUS THAT HAS BEEN MAIMED BY ITS OWN AGGRESSIVE EXPANSION STRATEGY OFFICIALS CONFIRMED REPORTS IN THE FRENCH PRESS THAT THE GOVERNMENT IS CONSIDERING A RECAPITALIZATION OF THE BANK OF AS MUCH AS FOUR BILLION FRANCS 677 MILLION WITH GOVERNMENT HELP CREDIT LYONNAIS IS ALSO LIKELY TO REMOVE AS MUCH AS 28 BILLION FRANCS OF SOURED REALESTATE LOANS AND OTHER DUBIOUS ASSETS FROM ITS BALANCE SHEET BY SHUNTING THEM OFF INTO A SEPARATE COMPANY CREDIT LYONNAIS PLUNGED INTO THE RED IN 1992 AND IS EXPECTED TO SHOW ANOTHER HEFTY LOSS IN 1993 FOLLOWING A HUGE SPENDING SPREE DURING THE LATE 1980S BY ITS FORMER CHAIRMAN JEANYVES HABERER UNDER HIS STEWARDSHIP THE BANK EXPANDED ITS PRESENCE THROUGHOUT EUROPE BUT ALSO RAN INTO MAJOR FINANCIAL AND LEGAL PROBLEMS AMONG OTHER THINGS CREDIT LYONNAIS IS CURRENTLY THE UNWILLING OWNER OF HOLLYWOOD'S TROUBLED MGM FILM STUDIO AND IS ALSO IMPLICATED IN A MAJOR SWISS FRAUD INQUIRY FULL DETAILS OF THE RESCUE PACKAGE AREN'T EXPECTED TO BE ANNOUNCED BEFORE CREDIT LYONNAIS REPORTS ITS 1993 RESULTS AT THE END OF NEXT MONTH AND A FINANCE MINISTRY SPOKESMAN DECLINED TO COMMENT BUT THE TROUBLED BANK'S PRIVATESECTOR RIVALS AREN'T WAITING FOR THE FINAL TEXT THEY ARE ALREADY CRYING FOUL AT THE VERY IDEA THAT THE STATE WILL HELP CREDIT LYONNAIS CLEAN UP ITS BALANCE SHEET THE CHAIRMEN OF SOCIETE GENERALE AND BANQUE NATIONALE DE PARIS WHICH WAS ONLY RECENTLY PRIVATIZED ARE BOTH ARGUING THAT ANY GOVERNMENT ASSISTANCE TO CREDIT LYONNAIS WOULD DISTORT FAIR COMPETITION GIVEN THAT MOST OF THE BANK'S PROBLEMS ARE SELFINFLICTED THEY SAY CREDIT LYONNAIS SHOULD SOLVE THEM ON ITS OWN PERHAPS BY SELLING PART OF ITS HUGE ASSET PORTFOLIO WHICH IS VALUED AT MORE THAN 60 BILLION FRANCS MARC VIENOT CHAIRMAN OF SOCIETE GENERALE HAS SAID IT WOULD BE SHOCKING IF CREDIT LYONNAIS WERE ALLOWED TO BOUNCE BACK WITHOUT PAYING FOR AT LEAST SOME OF ITS OWN MISTAKES AND ONE OFFICIAL AT ANOTHER BIG FRENCH BANK GRIPES THAT WE KEPT HEARING THAT IT WAS SO ACTIVE AND DYNAMIC WHILE WE WERE SUPPOSED TO BE SLEEPY BECAUSE WE WERE DOING TRADITIONAL BANKING I DON'T SEE WHY TAXPAYERS SHOULD NOW PUT IT BACK ON ITS FEET DESPITE SUCH COMPLAINTS THE GOVERNMENT SEEMS WILLING TO STEP IN BECAUSE IT HOPES TO READY CREDIT LYONNAIS FOR PRIVATIZATION THAT REMAINS A LONGTERM GOAL THE FIRST STAGE INVOLVES ENDING THE BANK'S STATUS AS A NATIONAL EMBARRASSMENT MR HABERER WAS PUSHED OUT LATE LAST YEAR AND SUCCEEDED BY JEAN PEYRELEVADE THE FORMER CHAIRMAN OF FRANCE'S BIGGEST INSURER UNION DES ASSURANCES DE PARIS MR PEYRELEVADE HAS BEEN MOVING FAST TO CURB THE BANK'S EXCESSES AND REORGANIZE ITS MANAGEMENT HE IS EXPECTED TO APPOINT PASCAL LAMY THE CHIEF OF STAFF TO JACQUES DELORS THE PRESIDENT OF THE EUROPEAN UNION COMMISSION IN BRUSSELS TO A TOP POSITION IN THE BANK OVER THE HEADS OF CURRENT SENIOR MANAGEMENT OFFICIALS IN BRUSSELS CLOSE TO MR LAMY CONFIRMED THE IMMINENT APPOINTMENT MR PEYRELEVADE HAS ALSO MOVED TO REIN IN SUBSIDIARIES SUCH AS ALTUS FINANCE THAT UNDER HIS PREDECESSOR BECAME VEHICLES FOR SOME OF THE BANK'S BIGGEST AND MOST RISKY FINANCIAL MOVES AMONG OTHER THINGS ALTUS ACQUIRED A 325 BILLION PORTFOLIO OF HIGHRISK HIGHYIELD JUNK BONDS OF THE FAILED EQUITABLE LIFE INSURANCE CO OF THE US BANKING ANALYSTS SAY A MAJOR HOUSECLEANING IS LONG OVERDUE MOODY'S INVESTORS SERVICE LAST WEEK PLACED THE RATINGS OF CREDIT LYONNAIS AND ITS SUBSIDIARIES UNDER REVIEW AND SOME OTHER ANALYSTS SAY THE BANK'S RATING WOULD TUMBLE WERE IT NOT OWNED BY THE FRENCH STATE ALTUS FINANCE A SUBSIDIARY OF CREDIT LYONNAIS IN 1991 ACQUIRED A 325 BILLION JUNKBOND PORTFOLIO FROM FAILED INSURER EXECUTIVE LIFE INSURANCE CO OF THE US IN AN ARTICLE YESTERDAY THE FAILED INSURER WAS INCORRECTLY IDENTIFIED AS EQUITABLE LIFE INSURANCE CO EQUITABLE LIFE REMAINS A GOING CONCERN 9402090180 940209 INTERNATIONAL TORIES' MORALITY' PROGRAM BACKFIRES AS YET ANOTHER PARTY SCANDAL ARISES BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THERE'S NO RESPITE FOR JOHN MAJOR'S SCANDALRIDDEN CONSERVATIVE PARTY JUST AS THE BRITISH PRIME MINISTER IS TRYING TO REGAIN SUPPORT HIS EMBATTLED GOVERNMENT WAS DEALT ANOTHER BLOW WITH SCANDALOUS CIRCUMSTANCES SURROUNDING THE DEATH OF A CONSERVATIVE MEMBER OF PARLIAMENT THE DEAD MP WAS FOUND IN HIS APARTMENT WEARING NOTHING BUT A PAIR OF WOMEN'S STOCKINGS HIS CASE IS THE LATEST OF A SERIES OF EVENTS IN RECENT WEEKS THAT HAVE SHATTERED MR MAJOR'S EFFORTS TO SET A BACK TO BASICS AGENDA BASED ON LAWANDORDER AND PUBLIC MORALITY I THINK WE HAVE NEVER EXPERIENCED ANYTHING QUITE LIKE THIS IT IS ALMOST UNBELIEVABLE GEOFFREY DICKENS A TORY MP TOLD BBC RADIO STEPHEN MILLIGAN 45 YEARS OLD A JUNIOR MP WAS FOUND DEAD WITH A PLASTIC BAG TIED OVER HIS HEAD AND A LENGTH OF ELECTRIC CORD WOUND AROUND HIS NECK POLICE REFUSED TO COMMENT ON HIS DEATH BUT WERE UNDERSTOOD TO BE INVESTIGATING POSSIBILITIES FROM MURDER TO A TRANSVESTITE SEX SESSION THAT WENT OUT OF CONTROL A BACHELOR WHO SPORTED PINSTRIPED SUITS MR MILLIGAN HAD WIDELY BEEN REGARDED AS ONE OF THE MOST TALENTED OF A YOUNGER GENERATION OF TORY MPS ASIDE FROM ITS TRAGIC CHARACTER MR MILLIGAN'S DEATH CONFRONTS MR MAJOR WITH THE UNCOMFORTABLE PROSPECT OF A PARLIAMENTARY BYELECTION AT A TIME WHEN PUBLIC ATTENTION IS FOCUSED ON SCANDALS IN HIS PARTY THE PROBLEMS BEGAN ON CHRISTMAS DAY WITH THE DISCLOSURE THAT TIM YEO A JUNIOR ENVIRONMENT MINISTER HAD FATHERED A CHILD IN AN EXTRAMARITAL AFFAIR AFTER SEVERAL DAYS OF TRYING TO HANG ONTO HIS JOB MR YEO WAS FORCED TO RESIGN ACCORDING TO REPORTS CIRCULATING IN LONDON LAST NIGHT FURTHER REVELATIONS IN THE BRITISH PRESS OF SEXUAL PECCADILLOES BY OTHER TORY POLITICIANS COULD BE IMMINENT NO SOONER WAS THAT INCIDENT PAST THAN ANOTHER TORY MP DAVID ASHBY SAID HE HAD SHARED A BED WITH A MAN IN A FRENCH HOTEL THOUGH HE INSISTED THAT THEY WERE MERELY FRIENDS AND THAT NO SEXUAL ACT TOOK PLACE A FEW DAYS LATER THE WIFE OF A JUNIOR MINISTER THE EARL OF CAITHNESS COMMITTED SUICIDE OVER HER HUSBAND'S FRIENDSHIP WITH ANOTHER WOMAN THE OPPOSITION LABOR PARTY HAS SEIZED ON THE DISCLOSURES TO CRITICIZE BACK TO BASICS AS A SHAM A GENERAL ELECTION ISN'T DUE UNTIL APRIL 1997 BUT THE CONSERVATIVES MAY FIND AN ELECTION FORCED UPON THEM MUCH EARLIER OPINION POLLS CURRENTLY SHOW THE LABOR PARTY LEADING THE TORIES BY AROUND 47 TO 28 SHARP TAX INCREASES DUE TO COME INTO EFFECT IN APRIL HAVE CONTRIBUTED TO THE GOVERNMENT'S DECLINING POPULARITY AND IN ANOTHER INCIDENT OVER THE WEEKEND ADDING TO THE GENERAL ATMOSPHERE OF INEPTITUDE MICHAEL PORTILLO THE HAWKISH 40YEAROLD TREASURY SECRETARY TOUTED BY RIGHTWING TORIES AS A POSSIBLE SUCCESSOR TO MR MAJOR ACCUSED STUDENTS IN OTHER EUROPEAN COUNTRIES OF CHEATING ON EXAMINATIONS HE LATER APOLOGIZED FOR THE REMARKS WHICH WERE SEIZED UPON BY FOREIGN DIPLOMATS AND COMMENTATORS AS EVIDENCE OF BRITISH XENOPHOBIA THE TORIES ARE ALMOST CERTAIN TO LOSE THE BYELECTION TO FILL THE VACANCY LEFT BY MR MILLIGAN'S DEATH IN TWO BYELECTIONS LAST YEAR THE LIBERAL DEMOCRAT PARTY OVERTURNED SIZABLE CONSERVATIVE MAJORITIES A SIMILAR OUTCOME IN EASTLEIGH MR MILLIGAN'S FORMER CONSTITUENCY IN SOUTHERN ENGLAND WOULD REDUCE MR MAJOR'S MAJORITY IN THE HOUSE OF COMMONS TO ONLY 15 FROM 21 AFTER THE LAST GENERAL ELECTION IN APRIL 1992 NO DATE HAS YET BEEN SET FOR THE BALLOT BUT IT WILL HAVE TO TAKE PLACE WITHIN THE NEXT FEW MONTHS WHILE NOT IMMEDIATELY THREATENING THE GOVERNMENT'S SURVIVAL A PROBABLE TORY DEFEAT WOULD BE ONE MORE SETBACK FOR MR MAJOR WHO IS BRITAIN'S MOST UNPOPULAR PRIME MINISTER SINCE WORLD WAR II ADDITIONALLY CONSERVATIVES FACE LOCAL ELECTIONS FOR TOWN COUNCILS IN MAY IN JUNE THERE ARE ELECTIONS TO THE EUROPEAN PARLIAMENT IF THE TORIES DO BADLY IN THESE VOTES MR MAJOR IS LIKELY TO COME UNDER PRESSURE TO HAND OVER THE PARTY LEADERSHIP TO SOMEONE ELSE 9402090179 940209 LIZ CLAIBORNE IN PACT IN UAE NEW YORK APPAREL MAKER LIZ CLAIBORNE INC SAID IT ENTERED INTO AN AGREEMENT TO MARKET APPAREL PRODUCTS IN DUBAI UNITED ARAB EMIRATES THE FIRST FREESTANDING LICENSED LIZ CLAIBORNE STORE IN THE MIDDLE EAST REGION WILL OPEN FEB 8 IN THE BUR JUMAN CENTRE THE COMPANY WILL DESIGN THE STORES WITH THE LICENSEE RESPONSIBLE FOR DAILY OPERATIONS THE COMPANY HAS 19 STORES IN THE US AND OTHER RETAIL LICENSE AGREEMENTS IN HONG KONG SINGAPORE ST MAARTEN AND JAPAN 9402090178 940209 RITE AID'S SHARE BUYBACK CAMP HILL PA RITE AID CORP SAID IT ACCEPTED ABOUT 21 MILLION SHARES UNDER ITS DUTCH AUCTION OFFER TO PURCHASE AS MANY AS 22 MILLION OF ITS SHARES RITE AID A DRUGSTORE COMPANY SAID IT ACCEPTED ALL SHARES TENDERED AT OR BELOW ITS 1850ASHARE PRICE UNDER AN OFFER THAT EXPIRED MONDAY 9402090177 940209 WHO'S NEWS STANDARD PRODUCTS CO STANDARD PRODUCTS CO CLEVELAND GERARD H MESNEL 56 YEARS OLD A CONSULTANT TO THIS MAKER OF SEALING AND TRIMMING SYSTEMS AND OTHER RUBBER AND PLASTIC PRODUCTS WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF ADVANCED TECHNOLOGY WORLDWIDE HE WILL BE RESPONSIBLE FOR PRODUCT AND PROCESS DEVELOPMENT AS WELL AS IMPROVING THE COMPANY'S SEALINGSYSTEMS TECHNOLOGIES ALSO BRUCE G DAVIS FORMER MANAGER OF MATERIALS SOURCING AND SUPPORT OPERATIONS WITH GENERAL ELECTRIC CORP'S GE TRANSPORTATION SYSTEMS WAS NAMED VICE PRESIDENT OF PURCHASING AND SUPPLY WORLDWIDE MR DAVIS 45 SUCCEEDS LARRY J ENDERS WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S OLIVER RUBBER CO UNIT IN JULY 9402090176 940209 ATLANTIC SOUTHEAST TRAFFIC RISES ATLANTA ATLANTIC SOUTHEAST AIRLINES SAID ITS JANUARY TRAFFIC ROSE 368 FROM THE YEAREARLIER PERIOD THE CARRIER SAID IT FLEW 565 MILLION REVENUE PASSENGER MILES UP FROM 413 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 423 FROM 434 FOR THE MONTH 9402090175 940209 WHO'S NEWS RUSSELL CORP RUSSELL CORP ALEXANDER CITY ALA THOMAS R JOHNSON JR 51 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF MANUFACTURING OF THIS APPAREL MAKER HE SUCCEEDS GERALD D MCGILL 56 WHO ANNOUNCED EARLY RETIREMENT LAST MONTH MR JOHNSON PREVIOUSLY WAS A MANUFACTURING VICE PRESIDENT 9402090174 940209 WHO'S NEWS AMERICA WEST AIRLINES AMERICA WEST AIRLINES PHOENIX A MAURICE MYERS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CARRIER WAS NAMED A DIRECTOR MR MYERS 53 YEARS OLD SUCCEEDS MICHAEL J CONWAY WHO RESIGNED FROM THE BOARD LAST WEEK AFTER BEING OUSTED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN LATE DECEMBER 9402090173 940209 WHO'S NEWS COLONIAL GAS CO COLONIAL GAS CO LOWELL MASS FL PUTNAM III WAS NAMED PRESIDENT OF THIS UTILITY EFFECTIVE MAY 1 MR PUTNAM 48 YEARS OLD AND CURRENTLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER SUCCEEDS CHARLES O SWANSON 62 WHO PLANS TO RETIRE AS PRESIDENT EFFECTIVE APRIL 30 MR SWANSON WILL CONTINUE AS A DIRECTOR 9402090172 940209 VANGUARD CELLULAR CREDIT GROWS GREENSBORO NC VANGUARD CELLULAR SYSTEMS INC SAID IT HAS RAISED ITS EXISTING SENIOR CREDIT AGREEMENT BY 100 MILLION TO FUND INCREASED CAPITAL EXPENDITURES ADDITIONAL CELLULAR ACQUISITIONS AND ITS INITIAL 30 MILLION INVESTMENT IN GEOTEK INDUSTRIES INC A GROUP OF 20 FINANCIAL INSTITUTIONS PROVIDED THE EXPANDED 390 MILLION FACILITY TO THIS OPERATOR OF CELLULAR TELEPHONE SYSTEMS 9402090171 940209 MEDIA VISION PACT FREMONT CALIF MEDIA VISION INC AND ANALOG DEVICES SAID THEY SIGNED AN AGREEMENT TO DEVELOP MULTIMEDIA SEMICONDUCTORS FOR PERSONAL COMPUTERS THE TWO COMPANIES SAID THEY ARE WORKING TOGETHER TO CREATE PRODUCTS THAT WILL BE MARKETED BY MEDIA VISION BEGINNING LATE NEXT YEAR ANALOG DEVICES IN NORWOOD MASS IS A MAKER OF INTEGRATED CIRCUITS MEDIA VISION MAKES MULTIMEDIA PRODUCTS FOR PERSONAL COMPUTERS 9402090170 940209 BANKERS CORP UNIT'S BUYBACK PERTH AMBOY NJ BANKERS CORP PARENT OF BANKERS SAVINGS SAID DIRECTORS AUTHORIZED REPURCHASE OF UP TO 600000 COMMON SHARES OR ABOUT 5 OF THE COMPANY'S COMMON STOCK THE COMPANY WHICH HAS 109 MILLION SHARES OUTSTANDING SAID SHARES WILL BE USED FOR BENEFIT PLANS AND CALLED THE SHARES A GOOD INVESTMENT ALTERNATIVE 9402090169 940209 SOUTHWEST AIRLINES TRAFFIC RISES DALLAS SOUTHWEST AIRLINES SAID ITS JANUARY TRAFFIC INCLUDING MORRIS AIR INCREASED 253 THE AIRLINE REPORTED REVENUE PASSENGER MILES OF 160 BILLION FOR THE MONTH UP FROM 128 BILLION FOR JANUARY 1993 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 631 FROM 629 A YEAR EARLIER SOUTHWEST SAID IT RESTATED 1993 TRAFFIC STATISTICS TO INCLUDE THOSE OF MORRIS AIR WHICH IT ACQUIRED DEC 31 1993 9402090168 940209 WHO'S NEWS EW SCRIPPS CO EW SCRIPPS CO CINCINNATI KEN LOWE 43 YEARS OLD A VICE PRESIDENT OF THIS COMPANY'S BROADCASTING UNIT SCRIPPS HOWARD BROADCASTING CO WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THE COMPANY'S NEW HOME AND GARDEN TELEVISION NETWORK UNIT AN EW SCRIPPS SPOKESMAN SAID LATER THIS YEAR THE NEW UNIT EXPECTS TO LAUNCH A 24HOUR CABLE CHANNEL ORIGINATING FROM KNOXVILLE TENN THAT WILL FEATURE PROGRAMS ON HOME REPAIR REMODELING GARDENING HOME ELECTRONICS AND DECORATING EW SCRIPPS IS A MEDIA COMMUNICATIONS CONCERN 9402090167 940209 ANTIIMPOTENCE AGENT APPROVED KALAMAZOO MICH UPJOHN CO SAID SWEDISH REGULATORS APPROVED ITS CAVERJECT STERILE POWDER FOR THE TREATMENT OF MALE IMPOTENCE THE FIRST TIME A COUNTRY HAS CLEARED THE PRODUCT FOR MARKETING UPJOHN SAID MALE IMPOTENCE AFFECTS AN ESTIMATED 55 MILLION MEN WORLDWIDE AND THE COMPANY IS SEEKING WORLDWIDE REGISTRATION OF CAVERJECT THE PRODUCT WHICH A PATIENT IS TAUGHT TO INJECT ENCOURAGES PENILE BLOOD FLOW 9402090166 940209 WHO'S NEWS MERRILL LYNCH & CO MERRILL LYNCH & CO NEW YORK ALEXANDRE KOCH TORRES DE ASSIS WAS NAMED DIRECTOR OF THIS SECURITIES FIRM'S CAPITALMARKETS ACTIVITIES IN BRAZIL EFFECTIVE MARCH 1 MR KOCH WILL OVERSEE INSTITUTIONAL TRADING ACTIVITY IN EQUITY EQUITYDERIVATIVE AND FIXEDINCOME SECURITIES BASED IN SAO PAULO MR KOCH HAD BEEN CHIEF ECONOMIST TREASURER AND HEAD OF THE INTERNATIONAL DEPARTMENT AT BANCO OMEGA SA 9402090165 940209 VERIFONE APPROVES BUYBACK REDWOOD CITY CALIF VERIFONE INC SAID ITS DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS 750000 COMMON SHARES IN OPENMARKET TRANSACTIONS DURING 1994 THE MAXIMUM AMOUNT OF CASH AUTHORIZED FOR THE BUYBACK IS 15 MILLION STOCK ACQUIRED WILL BE USED FOR THE COMPANY'S STOCK OPTION AND EMPLOYEE STOCKPURCHASE PROGRAMS VERIFONE A MAKER OF PAYMENTPROCESSING SYSTEMS HAS 239 MILLION SHARES OUTSTANDING 9402090164 940209 WHO'S NEWS PLAZA HOME MORTGAGE CORP PLAZA HOME MORTGAGE CORP SANTA ANA CALIF THIS MORTGAGE BANKING CONCERN ESTABLISHED THE OFFICE OF THE PRESIDENT AND NAMED ROBERT K COLE AND BRAD MORRICE TO SERVE JOINTLY IN THAT NEW POSITION MR COLE 47 YEARS OLD ALSO WILL HOLD THE TITLE OF CHIEF OPERATING OFFICER FINANCE AND MR MORRICE 37 WILL SERVE AS CHIEF OPERATING OFFICER ADMINISTRATION JACK FRENCH 62 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREVIOUSLY HELD THE TITLE OF PRESIDENT MR COLE MOST RECENTLY WAS PRESIDENT OF TRIPLE FIVE INC MR MORRICE PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF PLAZA HOME MORTGAGE 9402090163 940209 XEROX ADDS FIVE COPIERS STAMFORD CONN XEROX CORP SAID IT ADDED FIVE NEW COPIERS RANGING IN PRICE FROM 4405 TO 20625 TO ITS PRODUCT LINE THE COPIERS TO BE AVAILABLE IN MARCH INCLUDE THREE PRODUCTS IN THE 53 SERIES LINE WITH TOUCHSENSITIVE SCREENS XEROX SAID THE OFFICE EQUIPMENT COMPANY ALSO ANNOUNCED TWO MODELS FOR ITS 50 SERIES COPIERS WHICH MAKE 50 COPIES AND 21 COPIES A MINUTE 9402090162 940209 CANADA'S COMMONS CLEARS BILL ORDERING PORT WORK TO RESUME OTTAWA THE CANADIAN HOUSE OF COMMONS APPROVED LEGISLATION ORDERING AN IMMEDIATE RESUMPTION OF WORK AT WEST COAST CANADIAN PORTS WHICH HAVE BEEN PARALYZED BY A 12DAYOLD LABOR DISPUTE THE WORK STOPPAGE HAS HALTED SHIPMENTS OF GRAIN POTASH LUMBER AND OTHER COMMODITIES THROUGH VANCOUVER AND OTHER PORTS SOME CARGO HAS BEEN DIVERTED TO US PORTS INCLUDING SEATTLE THE LEGISLATION PROVIDES FOR ARBITRATION OF THE DISPUTE WHICH CENTERS ON THE UNION'S WAGE DEMANDS THE UNION IS SEEKING AN INCREASE OF 220 CANADIAN DOLLARS US164 OVER THREE YEARS IN THE HOURLY BASE RATE OF LONGSHOREMEN THE RATE IS CURRENTLY C2141 AN HOUR 9402090161 940209 INTERNATIONAL JAPAN'S NEC PICKS HIROSHI KANEKO A GLOBALMINDED EXECUTIVE AS PRESIDENT BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEC CORP WRACKED BY LOSSES AND BESIEGED BY US PERSONALCOMPUTER MAKERS TAPPED ONE OF ITS MOST INTERNATIONALMINDED EXECUTIVES HIROSHI KANEKO TO SUCCEED PRESIDENT TADAHIRO SEKIMOTO WHO WILL STEP ASIDE TO BECOME CHAIRMAN ANALYSTS SAID THE DECISION TO PASS ON THE PRESIDENTIAL REINS TO MR KANEKO A 60YEAROLD EXECUTIVE VICE PRESIDENT COULD GIVE NEC A FRESH CRACK AT STEMMING ITS FLOW OF RED INK AND REFOCUSING ITS PC BUSINESS IN JAPAN THE WORLD'S SECONDLARGEST PC MARKET THE ANNOUNCEMENT THAT DR SEKIMOTO WILL MOVE OUT OF THE PRESIDENT'S POST AND INTO THE LESSINVOLVED CHAIRMANSHIP WHILE ABRUPT WASN'T TOTALLY UNEXPECTED ANALYSTS AND COMPANY OFFICIALS SAID DR SEKIMOTO'S MOVE IS GOOD NEWS FOR NEC SAID LEE KERK PHUA AN ANALYST WITH BARING SECURITIES JAPAN INC MAYBE NOW WE'LL SEE NEC STARTING TO CHANGE ITS STRATEGY IN ELEVATING MR KANEKO TO PRESIDENT NEC HAS MADE CLEAR IT WANTS A LEADER WITH A GLOBAL OUTLOOK JAPANESE EXECUTIVES STATIONED OVERSEAS FOR LONG STINTS ARE RARELY CONSIDERED FOR TOP MANAGEMENT POSITIONS BUT MR KANEKO HAS SPENT FOUR OF THE PAST FIVE YEARS RUNNING NEC'S US OPERATIONS WE NEEDED SOMEONE WHO CAN MAKE NEC AN EVEN MORE GLOBAL COMPANY THAN IT ALREADY IS DR SEKIMOTO 67 SAID AT A NEWS CONFERENCE AT THE CONFERENCE MR KANEKO GAVE FEW INDICATIONS AS TO HOW HE INTENDS TO LEAD THE JAPANESE COMPANY SAYING HE HAD LITTLE TIME TO THINK ABOUT IT SINCE HE HAD LEARNED OF HIS APPOINTMENT BARELY 36 HOURS EARLIER WHILE HE STILL HAS SOME TIME TO PUT HIS THOUGHTS IN ORDER THE CHANGES DON'T TAKE EFFECT UNTIL JUNE ANALYSTS BELIEVE HE WILL HAVE TO MAKE HIS MARK QUICKLY THAT IS PARTLY BECAUSE NEC IS STILL BLEEDING RED INK FROM AN ILLFATED FORAY INTO CONSUMER ELECTRONICS AND FROM THE HIGH YEN WHICH MAKES PRODUCTS MANUFACTURED IN JAPAN MORE EXPENSIVE OVERSEAS IN THE SIX MONTHS ENDED SEPT 30 1993 NEC POSTED A CONSOLIDATED PRETAX LOSS OF 854 BILLION YEN 785 MILLION A SWING FROM AN 826 BILLION YEN PRETAX PROFIT IN THE YEAREARLIER PERIOD HOWEVER NEC SAID IT EXPECTS TO POST A SMALL PRETAX PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 LARGELY BECAUSE OF RECENT RESTRUCTURING MOVES AS WELL AS STRONG SEMICONDUCTOR SALES NEC ALSO IS FACING THE MOST SERIOUS THREAT EVER TO ITS 10YEAR DOMINANCE OF THE JAPANESE PC MARKET IN THE FORM OF PRICE COMPETITION FROM US COMPANIES SUCH AS COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP IN THE VIEW OF MANY ANALYSTS NEC HAS ENDANGERED ITS 53 MARKET SHARE BY CLINGING STUBBORNLY TO PCS OF ITS OWN DESIGN AT A TIME WHEN THE WORLD IS MOVING TO IBMSTYLE COMPUTERS MR KANEKO MAY HAVE THE TOOLS TO START TURNING NEC AROUND WHILE IN THE US HE WAS RESPONSIBLE FOR A RESTRUCTURING OF NEC'S OPERATIONS A TASK THAT INCLUDED ELIMINATING THE US CONSUMERELECTRONICS BUSINESS AND CLOSING DOWN A HANDFUL OF SURPLUS MANUFACTURING PLANTS 9402090160 940209 POLITICS & POLICY JUDGE SAYS ADMIRAL TRIED TO MANIPULATE INQUIRY ON TAILHOOK WASHINGTON A MILITARY JUDGE ACCUSED THE NAVY'S TOP OFFICER OF UNLAWFULLY TRYING TO MANIPULATE THE TAILHOOK INVESTIGATION REVIVING THE QUESTION OF WHETHER THE ADMIRAL WOULD BE OUSTED NAVY CAPT WILLIAM VEST JR IN A RULING THAT DISMISSED TAILHOOKRELATED CHARGES AGAINST THREE NAVY FLIERS ASSERTED THAT ADM FRANK KELSO THE CHIEF OF NAVAL OPERATIONS USED UNLAWFUL COMMAND INFLUENCE OVER THE INVESTIGATION OF TAILHOOK VIOLATIONS AND OVER THE SUBSEQUENT DISCIPLINING OF NAVAL OFFICERS THE JUDGE ALSO REJECTED SOME OF ADM KELSO'S TESTIMONY ABOUT WHAT HE WITNESSED AT THE 1991 TAILHOOK CONVENTION OF NAVAL AVIATORS IN LAS VEGAS IT WASN'T IMMEDIATELY CLEAR HOW ADM KELSO OR HIS CIVILIAN SUPERIORS WOULD REACT TO THE JUDGE'S FINDING WHICH WAS ISSUED IN NORFOLK VA A SPOKESMAN FOR THE ADMIRAL SAID HE WAS STILL REVIEWING THE JUDGE'S STATEMENT A SPOKESMAN FOR NAVY SECRETARY JOHN DALTON DIDN'T HAVE AN IMMEDIATE COMMENT A SPOKESWOMAN FOR DEFENSE SECRETARY WILLIAM PERRY SAID HE HASN'T HAD A CHANCE TO REVIEW THE JUDGE'S DECISION SHE SAID THAT WITHIN THE CHAIN OF COMMAND THE FIRST RESPONSE MUST COME FROM THE NAVY NAVY SECRETARY DALTON RECOMMENDED IN EARLY OCTOBER TO THENDEFENSE SECRETARY LES ASPIN THAT ADM KELSO BE FORCED TO RETIRE EARLY FOR HIS HANDLING OF THE TAILHOOK SCANDAL BUT MR ASPIN REJECTED THE RECOMMENDATION PARTLY BECAUSE HE ADMIRED ADM KELSO'S DEFT REORGANIZATION OF THE TRADITIONBOUND NAVY TO FIT THE POSTCOLD WAR WORLD AND PARTLY BECAUSE THE ADMIRAL LEARNED OF THE RECOMMENDATION ONLY AFTER IT LEAKED TO CBS NEWS THE CONTROVERSY OVER FIRING ADM KELSO WAS SOON OVERWHELMED BY EVENTS IN SOMALIA MR ASPIN MADE THE DECISION TO KEEP ON THE ADMIRAL ON OCT 3 JUST AS NEWS WAS ARRIVING THAT SCORES OF US ARMY RANGERS AND SPECIALFORCES TROOPS HAD BEEN WOUNDED IN A FIREFIGHT IN DOWNTOWN MOGADISHU PARTLY BECAUSE OF EVENTS IN SOMALIA MR ASPIN HIMSELF WAS PRESSURED BY THE PRESIDENT INTO SUBMITTING HIS RESIGNATION JUST TWO MONTHS LATER 9402090159 940209 BUSINESS BRIEF ALLIEDSIGNAL POSTS 29 PROFIT RISE SETS STOCK SPLIT AND RAISES DIVIDEND ALLIEDSIGNAL INC POSTED A 29 INCREASE IN FOURTHQUARTER PROFIT DECLARED A 2FOR1 STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND 16 CAPPING THE RESULTS OF A COMPANYWIDE RESTRUCTURING EFFORT FOURTHQUARTER PROFIT ROSE TO 178 MILLION OR 125 A SHARE FROM 138 MILLION OR 98 CENTS A SHARE A YEAR EARLIER THE PROFIT WAS HIGHER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF 120 COMPILED BY ZACKS INVESTMENT RESEARCH SALES ROSE SLIGHTLY TO 306 BILLION FROM 305 BILLION THE COMPANY SAID IT WILL PAY HOLDERS FIVE CENTS A PRESPLIT SHARE FOR REDEMPTION OF COMMONSHARE PURCHASE RIGHTS IT WILL BE PAID ALONG WITH THE CURRENT 29 CENTASHARE QUARTERLY DIVIDEND ON MARCH 10 TO STOCK OF RECORD FEB 18 THE RIGHTS WERE AUTHORIZED BY ALLIEDSIGNAL'S BOARD IN 1986 AS A POISON PILL DESIGNED TO MAKE A HOSTILE TAKEOVER MORE DIFFICULT THE STOCK SPLIT WILL USE THE STOCK PREVIOUSLY RESERVED FOR THE RIGHTS THE SHARE SPLIT FOLLOWS A 31 INCREASE IN THE PRICE OF ALLIEDSIGNAL SHARES OVER THE LAST YEAR THE ADDITIONAL SHARE FOR EACH SHARE OWNED WILL BE DISTRIBUTED ON MARCH 14 TO STOCK OF RECORD FEB 22 THE MAKER OF AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS BASED IN MORRIS TOWNSHIP NJ SAID IT INTENDS TO RAISE ITS QUARTERLY COMMONSTOCK DIVIDEND TO 335 CENTS A SHARE ON A PRESPLIT BASIS TO BE PAID BEGINNING WITH THE SECONDQUARTER PAYMENT THE NET EFFECT IS THAT BY THE END OF THE SECOND QUARTER EACH SHAREHOLDER WILL HAVE TWICE AS MANY SHARES WITH EACH SHARE PAYING A DIVIDEND OF 1675 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL STOCK CLOSED YESTERDAY AT 77375 UP 150 LAWRENCE A BOSSIDY CHAIRMAN SAID THE STOCK SPLIT AND THE DIVIDEND ACTION REFLECT THE IMPROVED 1993 PERFORMANCE AND OUR CONFIDENCE THAT IN 1994 WE WILL AGAIN DELIVER STRONG EARNINGS GROWTH AND POSITIVE CASH FLOW MR BOSSIDY SAID IN AN INTERVIEW THAT HE EXPECTS 1994 PROFIT TO INCREASE 13 TO 17 WHICH WILL BRING PERSHARE NET INCOME TO 523 TO 542 THAT WILL COMPARE WITH THE 463 A SHARE BEFORE ACCOUNTING CHANGES REPORTED YESTERDAY FOR 1993 HE ESTIMATED 1994 SALES WILL INCREASE 4 TO 6 THE LATEST FOURTHQUARTER RESULTS BROUGHT NET INCOME FOR ALL OF 1993 TO 656 MILLION A 23 INCREASE FROM THE 535 MILLION OR 380 A SHARE BEFORE ACCOUNTING CHANGES ADOPTED IN BOTH YEARS AFTER THE ACCOUNTING CHARGES 1993 NET INCOME WAS 411 MILLION OR 290 A SHARE COMPARED WITH A 1992 LOSS OF 712 MILLION OR 505 SHARE SALES IN 1993 DECLINED 2 TO 1183 BILLION FROM 1204 BILLION A YEAR EARLIER THE SHARPLY IMPROVED PERFORMANCE IN 1993 LARGELY REFLECTS THE SUCCESS OF MR BOSSIDY'S RESTRUCTURING OF THE COMPANY WHICH HE INSTITUTED SOON AFTER HE TOOK OVER ON JULY 1 1991 AS CHIEF EXECUTIVE OFFICER WE HAVE A SOLID FOUNDATION NOW HE SAID ADDING THAT THE OVERHAUL WILL MAKE FURTHER PAYOFFS THIS YEAR 9402090158 940209 MCDONALD'S TESTS SNACK BAR ATLANTA MCDONALD'S CORP IS TESTING A WALKUP SNACK BAR IN DOWNTOWN ATLANTA AS PART OF ITS PLANS TO DEVELOP MORE NONTRADITIONAL FASTFOOD OUTLETS THE STAND SIMILAR TO A RESTAURANT DRIVETHRU WINDOW OFFERS A LIMITED MENU INCLUDING HAMBURGERS AND FRENCH FRIES AS WELL AS FOOD NOT USUALLY ASSOCIATED WITH MCDONALD'S LIKE HOT DOGS CALLED THE CLASSIC WITHIN THE COMPANY THE OUTLET FEATURES 1950S MCDONALD'S DECOR WITH RED AND WHITE TILES AND LARGE ARCHES OVERHEAD 9402090157 940209 TREASURY PLANS SALE OF SHORTTERM BILLS TOTALING 244 BILLION WASHINGTON THE TREASURY PLANS TO PAY DOWN 178 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2618 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING MAY 19 AND AUG 18 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794K60 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794M84 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9402090156 940209 BUSINESS BRIEF SAFEWAY AND KROGER POST HIGHER EARNINGS FOR FOURTH QUARTER BOOSTED BY LOWER INTEREST COSTS TWO SUPERMARKET CHAINS SAFEWAY INC AND KROGER CO POSTED INCREASED EARNINGS FOR THE FOURTH PERIOD DESPITE SLOWER SALES SAFEWAY SAW FOURTHQUARTER EARNINGS RISE SHARPLY BECAUSE OF LOWER ADMINISTRATIVE COSTS AND INTEREST EXPENSE KROGER REPORTED A 56 JUMP IN FOURTHQUARTER EARNINGS PARTLY REFLECTING IMPROVED SALES DURING THE HOLIDAY PERIOD REDUCED COSTS AND LOWER INTEREST EXPENSE FOR THE QUARTER ENDED JAN 1 SAFEWAY BASED IN OAKLAND CALIF POSTED NET INCOME OF 469 MILLION OR 38 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 222 MILLION OR 19 CENTS A SHARE SALES IN THE QUARTER WERE 470 BILLION DOWN 31 FROM 485 BILLION A YEAR AGO IN THE MOST RECENT FOURTH QUARTER EARNINGS WERE REDUCED BY 87 MILLION OR SEVEN CENTS A SHARE BECAUSE OF RESTRUCTURING CHARGES IN THE YEARAGO PERIOD RESTRUCTURING CHARGES REDUCED NET INCOME BY 138 MILLION OR 12 CENTS A SHARE OPERATING AND ADMINISTRATIVE EXPENSES DURING THE QUARTER FELL TO 238 OF SALES FROM 252 A YEAR AGO INTEREST EXPENSE DROPPED TO 776 MILLION FROM 889 MILLION FOR THE YEAR SAFEWAY POSTED NET INCOME OF 1233 MILLION OR 1 A SHARE COMPARED WITH PROFIT BEFORE EXTRAORDINARY ITEMS AND ACCOUNTING CHANGES OF 984 MILLION OR 83 CENTS A SHARE IN THE PREVIOUS YEAR CHARGES FOR EARLY RETIREMENT OF DEBT AND ACCOUNTING CHANGES RESULTED IN NET INCOME OF 435 MILLION OR 37 CENTS A SHARE SAFEWAY'S MOST RECENT FULLYEAR EARNINGS WERE REDUCED BY 302 MILLION OR 24 CENTS A SHARE BECAUSE OF SEVERANCE COSTS RELATED TO A VOLUNTARY EMPLOYEE BUYOUT PROGRAM AT ITS ALBERTA CANADA DIVISION KROGER BASED IN CINCINNATI POSTED NET INCOME OF 827 MILLION OR 76 CENTS A SHARE UP FROM 531 MILLION OR 57 CENTS A SHARE A YEAR AGO THE SUPERMARKET CHAIN RECORDED AN EXTRAORDINARY LOSS OF 38 MILLION IN THE 1993 QUARTER AND A SIMILAR LOSS OF 156 MILLION IN THE 1992 QUARTER FOR THE AFTERTAX EFFECT OF THE EARLY RETIREMENT OF DEBT WITHOUT THE ITEM EARNINGS ROSE 26 TO 865 MILLION UP FROM 688 MILLION KROGER'S SALES TOTALED 54 BILLION COMPARED WITH 57 BILLION IN THE 1992 FOURTH QUARTER WHICH CONTAINED AN EXTRA WEEK AFTER ADJUSTING FOR THE EXTRA WEEK AND EXCLUDING SALES FROM THE COMPANY'S SAN ANTONIO STORES WHICH WERE SOLD IN 1993 SALES ROSE 38 IN THE LATEST FOURTH QUARTER 9402090155 940209 INTERNATIONAL INFLATION IN POLAND WARSAW PRICES FOR GOODS AND SERVICES INCREASED AN AVERAGE 16 IN JANUARY THE STATE NEWS AGENCY PAP REPORTED CITING A FINANCE MINISTRY SPOKESMAN THE GROWTH OF CONSUMER PRICES IN JANUARY SLOWED FROM LAST NOVEMBER AND DECEMBER WHEN PRICES ROSE BY 4 AND 57 RESPECTIVELY CONSUMER PRICES ROSE 376 IN DECEMBER FROM THE YEAREARLIER MONTH 9402090154 940209 TECHNOLOGY SCHERINGPLOUGH LENS APPROVED MADISON NJ SCHERINGPLOUGH CORP SAID ITS WESLEYJESSEN VISIONCARE UNIT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS FRESHLOOK LINE OF DISPOSABLE CONTACT LENSES SCHERING SAID THE LENSES IN FOUR OPAQUE COLORS AND CLEAR WILL BE AVAILABLE BY MIDYEAR IN MOST AREAS OF THE US SCHERING IS A PHARMACEUTICAL AND HEALTHCARE PRODUCTS COMPANY 9402090152 940209 INTERNATIONAL PENINSULAR & ORIENTAL STEAM LONDON UK SHIPPING AND TRANSPORT GROUP PENINSULAR & ORIENTAL STEAM NAVIGATION CO SAID YESTERDAY THAT ITS LOS ANGELESBASED SUBSIDIARY PRINCESS CRUISES HAS ORDERED TWO SUPERLINERS COSTING A TOTAL OF 680 MILLION FOR SERVICE IN NORTH AMERICA THE ORDER WAS PLACED WITH FINCANTIERI AN ITALIAN YARD THAT HAS WORKED WITH P&O IN THE PAST DELIVERY OF THE SHIPS IS DUE IN 1997 9402090151 940209 IN THE LAB IN THE BIG CHILL A RESEARCHER CHECKS OLD ICE FOR CLUES TO GLOBAL WARMING BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL HANOVER NH THE SNOWBANKS ARE HIGHER THAN HER HEAD AND ARCTIC WINDS HOWL OUTSIDE HER WINDOW BUT WHEN DEBRA MEESE ZIPS UP HER INSULATED ONEPIECE SUIT AND PULLS ON HER MUKLUKS SHE ISN'T GOING OUTSIDE DR MEESE WALKS DOWN THE HALL AT THE COLD REGIONS RESEARCH & ENGINEERING LABORATORY AND OPENS A HUGE REFRIGERATOR DOOR TO A ROOM KEPT AT 20 DEGREES BELOW ZERO WHERE TUBES OF ICE FROM THE GREENLAND ICE CAP ARE STORED IN THIS FRIGID ROOM DR MEESE HUNTS FOR CLUES ABOUT GLOBAL WARMING ONE OF THE TEAM OF US SCIENTISTS THAT DRILLED A 10000FOOT ICE CORE IN GREENLAND THE 36YEAROLD GLACIOLOGIST IS TRYING TO CREATE THE MOST DETAILED HISTORY OF WORLD CLIMATE YET SHE IS AMUSED THAT HER CHILDHOOD FASCINATION WITH ANTARCTICA HAS LED HER TO THE DEBATE ABOUT WHETHER THE EARTH'S CLIMATE IS HEATING UP TO DANGEROUS LEVELS ONE THING ABOUT SCIENCE YOU NEVER KNOW WHAT WILL BE THE NEXT HOT TOPIC SHE SAYS DR MEESE AND HER COLLEAGUE AT THE LAB TONY GOW A 62YEAR OLD NEW ZEALANDER WORKED IN CENTRAL GREENLAND THE PAST THREE SUMMERS DRILLING A HOLE 17 MILES WEST OF A TEAM OF EUROPEAN SCIENTISTS THE EUROPEANS DRILLED FASTER AND LAST SUMMER THEY CONCLUDED THAT GLOBAL TEMPERATURE CAN RISE MUCH FASTER THAN HAD BEEN PREVIOUSLY IMAGINED BASED ON CALCULATIONS OF THE RATIOS BETWEEN TWO TYPES OF OXYGEN ISOTOPES PRESENT IN THE ICE THE US SCIENTISTS CONFIRMED THE EUROPEAN DISCOVERY THAT DURING THE LAST ICE AGE GLOBAL TEMPERATURES REPEATEDLY SHOT UP BY MORE THAN NINE DEGREES IN LESS THAN 20 YEARS BEFORE FALLING GRADUALLY AGAIN BUT THEY COULDN'T FIND EVIDENCE OF THE EUROPEANS' CONCLUSION THAT SIMILAR SHARP SUDDEN INCREASES OCCURRED DURING THE EEMIAN PERIOD BEFORE THE LAST ICE AGE MORE THAN 85000 YEARS AGO AS THE EARTH CURRENTLY IS NOT IN AN ICE AGE WHAT OCCURRED DURING THE EEMIAN PERIOD IS CRUCIAL TO UNDERSTANDING WHETHER SHARP WARMUPS COULD OCCUR EVEN IN TEMPERATE PERIODS SUCH AS OUR OWN IF THE EUROPEAN CONCLUSIONS ARE RIGHT THEY MIGHT INDICATE THAT THE WORLD COULD BE SUBJECT TO VOLATILE AND DEVASTATING TEMPERATURE RISES A NINEDEGREE RISE IN GLOBAL TEMPERATURES WOULD MELT ICE CAPS FLOOD COASTAL CITIES AND DESTROY SOME VEGETATION IN TEMPERATE REGIONS THE EUROPEAN INTERPRETATION ALSO ADDED WEIGHT TO THE ARGUMENT FOR CONTROLLING MANMADE WARMING EFFECTS SUCH AS THE EMISSION OF GASES FROM BURNING FOSSIL FUEL ICECORE DATING IS EXOTIC STUFF FOR THE COLD REGIONS LAB WHICH IS PART OF THE US ARMY CORPS OF ENGINEERS SAYS GEORGE ASHTON CHIEF OF RESEARCH LAB ENGINEERS DEVELOP ANTIFREEZE FOR POURING CONCRETE IN SUBFREEZING TEMPERATURES AND STUDY HOW SNOW AFFECTS THE INFRARED SENSORS ON SMART WEAPONS THE LAB'S BIGGEST ENGINEERING TRIUMPH WAS CONVINCING THE ARMY THAT KNOBBY JEEP TIRES DIDN'T PROVIDE BETTER TRACTION IN SNOW THAN REGULAR TIRES SAVING MILLIONS OF DOLLARS THE LAB HAS 40 PHDS AND 300 OTHER WORKERS IT KEEPS ITS REFRIGERATORS HUMMING SO THEY CAN FREEZE GIANT CHESTS OF SOIL OR CHILL HUGE SCALE MODELS OF FLUMES AND RIVERS BUT THE CORPS OF ENGINEERS ALSO HAS A LONG INVOLVEMENT WITH GREENLAND WHERE IT HELPED DESIGN RADAR STATIONS THAT COULD SURVIVE THE FAR NORTH AND MORE RECENTLY DRILLED ICE CORES THE TEAM TO WHICH DR MEESE BELONGS CAME UP WITH SOME CONCLUSIONS ABOUT TEMPERATURE THAT DIVERGE SHARPLY FROM THE EUROPEANS WE DIDN'T SEE THE SHARP CHANGES DURING THE EEMIAN PERIOD SAYS DR MEESE SHE ASSERTS THAT THE ICECORE RECORD AT THAT DEPTH IS TOO DEFORMED TO PROVIDE GOOD INFORMATION ON THE EEMIAN CLIMATE DR MEESE HAS SUPERVISED WHAT SHE SAYS WAS A MORE PAINSTAKING VISUAL COUNT USING LASERS AND ELECTRICALCONDUCTIVITY MEASURES TO COUNT THE YEARS ACCORDING TO EMBEDDED DUST WHICH IS SCATTERED MORE HEAVILY DURING THE SUMMER DR MEESE ASKS HOW CAN YOU PUT IT IN A TIME FRAME WHEN YOU HAVE AN OVERTURNED FOLD IN AN ICE LAYER WHEN THE EUROPEAN SCIENTISTS HAD A DEFORMATION THEY DIDN'T TAKE AS DETAILED A LOOK SHE SAYS DR WILLI DANSGAARD OF THE UNIVERSITY OF COPENHAGEN THE MAN WHO DISCOVERED THE PATTERN OF REPEATED SHARP TEMPERATURE INCREASES SAYS HIS INVESTIGATION OF THE EUROPEAN ICE CORE INDICATES IT ISN'T DEFORMED UNTIL A LEVEL MUCH DEEPER THAN THE AMERICAN CORE IT COULD BE THAT THE EUROPEAN CORE IS DEFORMED ALSO BUT WE SEE NO EVIDENCE OF IT HE SAYS HE ADDS THAT THE EUROPEANS EXAMINED EVERY INCH OF THE CORE VERY CLOSELY FINDING NO DEFORMATIONS DOWN TO THE 9405FOOT DEPTH THAT HE SAYS CORRESPONDS TO 130000 YEARS AGO NEAR THE DAWN OF THE EEMIAN PERIOD DR MEESE SAYS THE US SCIENTISTS HAVE BUILT THE MOST DETAILED TIMELINE OF GLOBAL WEATHER YET CONSTRUCTED IT GOES BACK 85000 YEARS TO THE DAWN OF THE LAST ICE AGE CORRELATING THEIR TIMELINE WITH RECORDS OF SEABED SEDIMENTS VOLCANIC ACTIVITY CORALREEF GROWTH BRISTLECONEPINE RINGS AND CARBON DATING IS IMPROVING THE PRECISION OF DATING PREHISTORIC AND EVEN HISTORIC CLIMATIC EVENTS IN ONE OF THE COLD ROOMS DR MEESE SLICES THIN STRIPS OF ICE OFF THE CYLINDERS WITH A BAND SAW AND MOUNTS THEM ON GLASS FOR VIEWING THROUGH PLASTIC POLARIZED SHEETS A MOSAIC OF LARGE BLUE BLACK RED AND YELLOW POLYGONS APPEARS REVEALING CRYSTALS OF SNOW THAT FELL SOME 75000 YEARS AGO AND HAVE BEEN PACKED DOWN YEAR BY YEAR EVER SINCE IN GREENLAND SCIENTISTS DATED THE ICE FROM THE SIXFOOTLONG FIVEINCHDIAMETER CORES BY GAUGING THINGS LIKE ELECTRICAL CONDUCTIVITY WHICH DIFFERS FROM SUMMER TO WINTER BECAUSE SUMMER SNOW IS MORE ACIDIC BUT THEIR EYES UNEXPECTEDLY TURNED OUT TO BE THE MOST ACCURATE INSTRUMENTS WE THOUGHT WE'D JUST BE ABLE TO SEE LAYERS FOR A FEW HUNDRED METERS SAYS DR MEESE IT TURNED OUT LAYERS WERE VISIBLE DOWN ALMOST 9000 FEET OR 85000 YEARS WHERE A YEAR'S SNOWFALL WAS COMPRESSED TO A SINGLE CENTIMETER THE ICE AGE PERIOD WAS 40 TIMES MORE DUSTY THAN THE CURRENT HOLOCENE PERIOD SO THE SUMMER DUST STORMS THAT DEPOSIT CLOUDY BANDS ARE STILL VISIBLE IN THE ASTOUNDINGLY CLEAR DEEP ICE SAYS DR GOW EVEN SO AT GREATER DEPTHS WHERE THE ICE WAS COMPRESSED BELOW GROWING TONS OF SNOW THEY ADMIT THEY MAY HAVE MISSED A YEAR HERE AND THERE DRS MEESE AND GOW HAVE CORRELATED THE VARIOUS MEASURES TO ARRIVE AT A YEARBYYEAR RECORD THAT SPANS 850 CENTURIES WITH A 10 ERROR RATE THE SCIENTISTS HOPE TO GO TO COPENHAGEN WHERE THE EUROPEAN CORE IS STORED AND STUDY IT BUT THEY FEAR IT MAY HAVE DETERIORATED IN THE YEARANDAHALF SINCE IT WAS PULLED FROM THE ICE CAP 9402090150 940209 AIRGAS COMPLETES ACQUISITION WILMINGTON DEL AIRGAS INC A UNIT OF BOC GROUP INC OF ENGLAND COMPLETED THE ACQUISITION OF THE CALIFORNIA AND NEVADA RETAIL INDUSTRIAL GAS AND WELDING SUPPLY OPERATIONS OF BIRMINGHAM ALA BASED AIRCO GAS & GEAR CO TERMS WEREN'T DISCLOSED THE ACQUIRED BUSINESS HAS ANNUAL SALES OF ABOUT 48 MILLION AIRGAS HAS ANNUAL SALES IN EXCESS OF 550 MILLION AIRGAS INC BASED IN RADNOR PA COMPLETED ITS ACQUISITION OF CERTAIN BUSINESSES OF AIRCO GAS & GEAR CO A UNIT OF BOC GROUP INC AN ARTICLE YESTERDAY INCORRECTLY SAID AIRGAS WAS A UNIT OF BOC GROUP 9402090149 940209 US WILL SEEK END OF WEAPONS AROUND SARAJEVO NATO TO BE ASKED TO SET DEADLINE FOR REMOVAL USE AIRSTRIKES THREAT BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND FRANCE WILL ASK NATO TO SET AN EARLY DEADLINE FOR THE WITHDRAWAL OF ALL HEAVY WEAPONS FROM AROUND SARAJEVO AND BACK IT UP WITH THE THREAT OF AIR STRIKES AT THE SAME TIME THE CLINTON ADMINISTRATION WILL TRY TO BOLSTER THE BOSNIAN MUSLIMS' DIPLOMATIC HAND AND REVIVE THE NEARMORIBUND NEGOTIATING PROCESS BY OFFERING TO PLAY A NEW HIGHPROFILE ROLE IN PEACE TALKS THE US DISPATCHED TWO TOP OFFICIALS TO EUROPE LAST NIGHT TO OUTLINE THE NEW DIPLOMATIC INITIATIVE WHICH INCLUDES SENDING A SPECIAL US ENVOY TO SARAJEVO TO HELP THE MUSLIM GOVERNMENT CRAFT A PEACE PROPOSAL THAT THEN WOULD BE CHAMPIONED BY THE US THE USFRENCH PROPOSAL FOR ENDING THE SIEGE OF SARAJEVO WOULD GIVE THE BOSNIAN SERBS AND THE MUSLIMLED GOVERNMENT ABOUT A WEEK TO WITHDRAW THEIR ARTILLERY MORTARS AND TANKS OR FACE ALLIED AIR STRIKES IN PRACTICE HOWEVER THE SERBS WHO HAVE THE OVERWHELMING MAJORITY OF THE FIREPOWER AND WHO HAVE BEEN DOING MOST OF THE KILLING WOULD BEAR THE BRUNT OF THE DEMAND THE PROPOSAL WILL BE PRESENTED TODAY IN BRUSSELS AT A MEETING OF THE NORTH ATLANTIC COUNCIL THE POLITICAL ARM OF THE NORTH ATLANTIC TREATY ORGANIZATION NATO HAS THREATENED AIR STRIKES BEFORE BUT FAILED TO FOLLOW THROUGH MAINLY BECAUSE OF FEARS OF PROVOKING SERBIAN RETALIATION AGAINST EUROPEAN AND CANADIAN PEACEKEEPERS ANGER OVER LAST WEEKEND'S SLAUGHTER OF 68 PEOPLE IN A SARAJEVO MARKET HAS GONE A GOOD WAY TO SHIFT OPINION IN THE ALLIANCE BUT US OFFICIALS ACKNOWLEDGED THAT THE PLAN COULD BE RADICALLY ALTERED OR EVEN REJECTED TODAY THE US IS HOPING THAT ITS DIPLOMATIC INITIATIVE WILL STRENGTHEN ITS CREDIBILITY AMONG THE ALLIES AND BOLSTER THE JOINT PROPOSAL FRANCE WHICH ORIGINATED THE PROPOSAL FOR SECURING SARAJEVO COULD PROVE EVEN MORE PERSUASIVE FOREIGN MINISTER ALAIN JUPPE THREATENED TO WITHDRAW FRENCH PEACEKEEPERS FROM BOSNIA UNLESS NATO AGREED ON SPECIFIC AND FORCEFUL ACTION AS PART OF THE JOINT PROPOSAL US OFFICIALS SAY THE BOSNIAN GOVERNMENT WOULD BE ALLOWED TO PLACE THEIR HEAVY WEAPONS UNDER UNITED NATIONS MONITORING WHILE THE SERBS WOULD BE REQUIRED TO WITHDRAW THEIR WEAPONS ALTOGETHER THERE IS NO CHANCE THAT THE MUSLIMS WOULD BE THE FIRST TO BE PUNISHED FOR ANY VIOLATION SAID A SENIOR US OFFICIAL THE US ALSO WILL OFFER TO PROVIDE SPECIAL RADAR TO UN FORCES TO MONITOR THE WITHDRAWAL OF THE WEAPONS AND TO PINPOINT THE SOURCE OF ANY SHELLING US OFFICIALS WERE HOPING THAT THE APPEARANCE OF EVENHANDEDNESS WOULD DEFUSE RUSSIAN OBJECTIONS TO THE THREAT OF NATO AIR STRIKES AGAINST SERBS AS OF LAST NIGHT BRITAIN WAS BELIEVED TO BE LEANING IN FAVOR OF THE PROPOSAL WHILE CANADA WAS STILL FIRMLY OPPOSED TO ADDRESS THEIR CONCERNS NATO PLANNERS HAVE BEEN WORKING TO COME UP WITH A WAY TO BETTER PROTECT LIGHTLYARMED PEACEKEEPERS ONE SENIOR US OFFICIAL DESCRIBED THE APPROACH ON THE GROUND AS SIMPLY HUNKERING DOWN FOR AWHILE EVEN THEN OFFICIALS ACKNOWLEDGED THERE COULD BE HEATED DEBATE AT TODAY'S MEETING ABOUT A VARIETY OF ISSUES INCLUDING THE TIMING OF THE DEADLINE OR EVEN WHETHER TO SET A DEADLINE AS WELL AS THE DISTANCE FOR WITHDRAWAL OF THE WEAPONRY AS OF LAST NIGHT THE USFRENCH PROPOSAL WOULD HAVE THE WEAPONS WITHDRAWN ABOUT 12 MILES BEYOND THE CENTER OF SARAJEVO WITH A DEADLINE OF SEVEN TO 10 DAYS IN WASHINGTON YESTERDAY SAM NUNN D GA SENATE ARMED SERVICES COMMITTEE CHAIRMAN WARNED THAT THE US NEEDS TO CONSIDER MILITARY ACTIONS BEYOND ANY AIR STRIKES YOU HAVE TO BE PREPARED TO TAKE OTHER STEPS HE SAID THEY MAY RETALIATE NOBODY KNOWS WHAT WILL HAPPEN AFTER THE FIRST STRIKE UNTIL NOW THE US HAS RESISTED EUROPEAN DEMANDS TO GET MORE INVOLVED IN THE NEGOTIATIONS SAYING THEY WOULDN'T FORCE THE MUSLIMS TO ACCEPT ANY PLAN BUT THE US ALSO IS EXPECTED TO WARN THE MUSLIMS THAT THEIR BATTLEFIELD GAINS IN RECENT WEEKS CAN'T LAST IN THE FACE OF SUPERIOR CROAT AND SERBIAN FORCES WE'RE GOING TO TELL THE MUSLIMS THAT THEY'VE GOT A GREAT OPPORTUNITY HERE AND THEY'VE GOT TO SEIZE IT SAID A SENIOR PENTAGON OFFICIAL I WOULDN'T CALL IT PRESSURE BUT WE'RE GOING TO ENCOURAGE THEM TO COME UP WITH A BOTTOM LINE AND WE'RE GOING TO SAY TO THE SERBS TAKE IT OR EXPECT THE WORST AND WE'LL SAY TO THE CROATS TAKE IT OR WE'LL PUT YOU IN THE SANCTIONS THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9402090148 940209 POLITICS & POLICY FDIC NOMINEE TIGERT VOWS TO REMOVE HERSELF FROM ISSUES INVOLVING CLINTONS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RICKI TIGERT REMOVED HERSELF FROM ANY REGULATORY MATTER CONCERNING PRESIDENT AND HILLARY RODHAM CLINTON IN ORDER TO HEAD OFF GROWING REPUBLICAN OPPOSITION TO HER NOMINATION TO HEAD THE FEDERAL DEPOSIT INSURANCE CORP MS TIGERT'S ACTION HEADS OFF A POTENTIALLY MESSY CONFRONTATION BETWEEN SENATE REPUBLICANS AND DEMOCRATS OVER THE ABILITY OF THE FDIC TO INVESTIGATE THE CLINTONS' CONNECTION TO MADISON GUARANTY SAVINGS & LOAN A FAILED ARKANSAS THRIFT AS A RESULT SENATE ACTION ON MS TIGERT'S NOMINATION IS EXPECTED TO PROCEED WITHOUT BECOMING A PLATFORM FOR REPUBLICAN CHARGES ABOUT THE CLINTONS' BUSINESS AND POLITICAL DEALINGS WITH MADISON GUARANTY DURING MS TIGERT'S CONFIRMATION HEARING LAST WEEK TWO REPUBLICANS ON THE SENATE BANKING COMMITTEE LAUCH FAIRCLOTH OF NORTH CAROLINA AND ALFONSE D'AMATO OF NEW YORK CITED NEWS ACCOUNTS OF MS TIGERT'S FRIENDSHIP WITH MRS CLINTON AND ASKED HER TO RECUSE HERSELF OF ANY FDIC MATTER INVOLVING THE PRESIDENT AND HIS WIFE MS TIGERT REFUSED SAYING ONLY THAT SHE WOULD FOLLOW THE ADVICE OF FDIC ETHICS COUNSELORS ON ANY MATTER INVOLVING A POTENTIAL CONFLICT SHE TOLD FRIENDS THAT SHE HAD ONLY A CASUAL RELATIONSHIP WITH THE CLINTONS AND THAT SHE WAS RELUCTANT TO AGREE TO A BLANKET RECUSAL IN ADVANCE BUT OVER THE WEEKEND SHE LEARNED THAT SENATE REPUBLICANS WERE LOOKING FOR WAYS TO BLOCK HER NOMINATION UNLESS SHE RECUSED HERSELF FROM ISSUES THAT COULD INVOLVE THE CLINTONS TO END CONCERNS ABOUT CONFLICTS OF INTEREST SHE DECIDED ON THE RECUSAL IN A LETTER TO SEN D'AMATO MS TIGERT SAID I HAVE NO SUCH PERSONAL KNOWLEDGE OF ANY SUCH MATTER OTHER THAN WHAT I HAVE READ IN THE PRESS BUT I AM VERY MINDFUL OF THE CONCERNS YOU HAVE RAISED I WANT TO RESOLVE THIS ISSUE AS EXPEDITIOUSLY AS POSSIBLE SHE INCLUDED A NOTARIZED STATEMENT SAYING THAT IF CONFIRMED SHE WOULD RECUSE HERSELF FROM PARTICIPATION IN ANY FDIC INVESTIGATION INQUIRY OR DETERMINATION CONCERNING PRESIDENT OR MRS CLINTON IN THEIR PERSONAL CAPACITIES ASKED ABOUT THE LETTER MR D'AMATO SAID THAT IT'S HELPFUL TO DISPEL CONCERNS RAISED ABOUT HER INDEPENDENCE WHILE THE FDIC IS INVESTIGATING MATTERS THAT INVOLVE THE CLINTONS IN FACT THE FDIC IS ONLY MARGINALLY INVOLVED IN THE MADISON GUARANTY AFFAIR WHICH IS BEING INVESTIGATED BY AN INDEPENDENT COUNSEL THE AGENCY HIRED ROSE LAW FIRM OF LITTLE ROCK TO SUE AN ACCOUNTING FIRM THAT HAD DONE WORK FOR MADISON BEFORE IT FAILED MRS CLINTON WAS A PARTNER IN THE ROSE FIRM AND WAS AT ONE TIME RETAINED TO DO LEGAL WORK FOR MADISON NOW THE FDIC IS TRYING TO DECIDE IF THE FIRM ACCURATELY INFORMED THE AGENCY OF ITS CONNECTIONS TO MADISON THE AGENCY'S REPORT IS EXPECTED IN SEVERAL DAYS THE CHICAGO TRIBUNE REPORTED LAST WEEK THAT MRS CLINTON HAD REPRESENTED THE FEDERAL SAVINGS AND LOAN INSURANCE CORP A NOWDEFUNCT AGENCY IN NEGOTIATIONS WITH A FRIEND AND POLITICAL SUPPORTER OF MR CLINTON'S WHEN HE WAS GOVERNOR OF ARKANSAS BUT YESTERDAY AFTER LOOKING INTO THE REPORT FDIC SPOKESMAN ALAN WHITNEY SAID THE NEWSPAPER HAD MISCHARACTERIZED MRS CLINTON'S ROLE THE BEST WE CAN TELL MRS CLINTON WASN'T INVOLVED IN THE SETTLEMENT HE SAID SEPARATELY GOP SENATORS STEPPED UP THEIR EFFORTS TO PRESS THE RESOLUTION TRUST CORP WHICH SELLS OFF THE ASSETS OF FAILED THRIFTS TO TAKE ACTION AGAINST THE PEOPLE CONNECTED WITH THE FAILURE OF MADISON GUARANTY BEFORE THE STATUTE OF LIMITATIONS RUNS OUT FOR CIVIL ACTIONS THE STATUTE EXPIRES ON FEB 28 FORTY REPUBLICAN SENATORS SIGNED A LETTER TO DEPUTY TREASURY SECRETARY ROGER ALTMAN THE INTERIM HEAD OF THE RTC ASKING WHAT THE RTC IS DOING TO FILE CIVIL CLAIMS AGAINST PEOPLE WHO MAY HAVE BEEN RESPONSIBLE FOR MADISON GUARANTY'S FAILURE OR TO WIN AGREEMENTS EXTENDING THE STATUTE OF LIMITATIONS MADISON GUARANTY'S FAILURE COST THE GOVERNMENT 47 MILLION AND THE RTC COULD FILE SUITS TO RECOVER SOME OF THAT MONEY ONE QUESTION THE REPUBLICANS WANT ANSWERED IS WHETHER ANY BUSINESS OR POLITICAL DEALINGS BETWEEN THE THRIFT AND THE CLINTONS MAY HAVE CONTRIBUTED TO THE THRIFT'S FAILURE REP JAMES LEACH R IOWA CONTENDS THAT THERE MAY BE SUCH A CONNECTION WHITE HOUSE OFFICIALS DISMISS THIS SUGGESTION AS RIDICULOUS MR ALTMAN A LONGTIME FRIEND OF MR CLINTON'S HAS SAID THAT THE RTC IS CONDUCTING A THOROUGH REVIEW OF THE POTENTIAL CIVIL CLAIMS RELATED TO MADISON 9402090147 940209 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK ROBERT E EVANSON 57 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF FINANCE AND OPERATIONS FOR THE EDUCATIONAL AND PROFESSIONAL PUBLISHING GROUP OF THIS INFORMATION AND PUBLISHING SERVICES COMPANY A NEW POSITION MR EVANSON WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO 9402090146 940209 INTERNATIONAL BT CUTS PEAK RATES PRESSURING COMPETITION IN TELEPHONE MARKET SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH TELECOMMUNICATIONS PLC TOOK ANOTHER SWIPE AT MERCURY COMMUNICATIONS LTD CUTTING TELEPHONE CHARGES BY ABOLISHING HIGHER RATES FOR PERIODS OF PEAK DEMAND IN A MOVE THAT IS SEEN PUTTING FURTHER PRESSURE ON THE CABLE & WIRELESS PLC UNIT THE CHANGE IS SEEN BITING INTO MERCURY'S BUSINESSMARKET BASE WHICH ANALYSTS SAY PROVIDES ALMOST ALL ITS PROFIT AND DEFENDING BT'S RESIDENTIAL MARKET SHARE AT THE SAME TIME MFS COMMUNICATIONS CO OF THE US ANNOUNCED PLANS TO ENTER THE LUCRATIVE LONDON HEAVYUSE TELEPHONE MARKET IN APRIL INCREASING COMPETITION IN MERCURY'S CORE MARKET MERCURY WHICH IS 80 OWNED BY CABLE & WIRELESS AND 20 OWNED BY CANADA'S BCE INC IMMEDIATELY FOUGHT BT'S MOVE SCRAPPING ITS OWN PRIMEPERIOD PRICE PREMIUM RATHER THAN LOSE ITS AVERAGE 20 DISCOUNT TO BT PRICES MERCURY CONCEDES THE DISCOUNTING WILL SQUEEZE ITS PROFIT MARGINS BUT BY NO MORE THAN WE THOUGHT A SPOKESWOMAN SAID BT'S PRICE CUTS WERE WIDELY EXPECTED SOME ANALYSTS SAY THE CUTS DO NOTHING MORE THAN COMPLETE THE 500 MILLION OF CUTS REQUIRED THIS YEAR BY THE GOVERNMENT'S OFFICE OF TELECOMMUNICATIONS 9402090145 940209 FINANCING BUSINESS ROCHESTER TELEPHONE CORP ROCHESTER TELEPHONE CORP ROCHESTER NY PLANS TO RAISE ABOUT 88 MILLION THROUGH A PUBLIC OFFERING OF 21 MILLION SHARES AT 42 A SHARE AND TO USE THE PROCEEDS TO EXPAND ITS LINES OF BUSINESS AND FOR CORPORATE USES THE TELEPHONE COMPANY ALSO SAID ITS LARGEST SHAREHOLDER C FON CORP A UNIT OF SPRINT CORP WILL SELL ITS ENTIRE HOLDINGS OF 29 MILLION SHARES IN ROCHESTER FOR 42 A SHARE SALOMON BROTHERS INC IS THE LEAD UNDERWRITER OF THE OFFERINGS 9402090144 940209 TIAA RATING OF ABILITY TO PAY CLAIMS IS HELD AT TRIPLEA BY S&P NEW YORK STANDARD & POOR'S CORP SAID IT AFFIRMED ITS TRIPLEA CLAIMSPAYING ABILITY RATING ON TEACHERS INSURANCE & ANNUITY ASSOCIATION A LIFEINSURANCE COMPANY WITH ASSETS OF 67 BILLION S&P SAID ITS RATING REFLECTS TIAA'S SUPERIOR MARKET POSITION SOLID EARNINGS PERFORMANCE EXCELLENT CAPITALIZATION AND THE LIMITED LIQUIDITY REQUIREMENTS OF ITS LIABILITY STRUCTURE COMBINED WITH ITS COLLEGE RETIREMENT EQUITIES FUND AFFILIATE TIAA IS THE LARGEST PRIVATE RETIREMENT SYSTEM IN THE NATION WITH ASSETS OF 128 BILLION AT YEAREND 1993 DUE TO THE COMPANY'S MARKET DOMINANCE AND LOW COST STRUCTURE TIAA HAS CONTINUED TO ENJOY STRONG OPERATING PERFORMANCE RETURN ON ASSETS INCREASED TO 079 IN 1993 FROM 044 IN 1991 DUE TO THE COMPANY'S ACTIVE DIVIDEND MANAGEMENT DESPITE THE DECLINING INTERESTRATE ENVIRONMENT S&P SAID THE REPORT NOTED HOWEVER THAT TIAA HAS SUBSTANTIAL INVESTMENTS IN MORTGAGES AND REAL ESTATE AND A HIGH THOUGH DECLINING PROPORTION OF NONINVESTMENTGRADE ISSUES IN ITS BOND PORTFOLIO THE COMPANY'S STRONG CAPITAL BASE AND THE LONG MATURITY OF ITS ANNUITIES OFFSET SUBSTANTIAL LONGTERM RISK S&P ADDED 9402090143 940209 WHO'S NEWS PHOENIX LASER SYSTEMS INC PHOENIX LASER SYSTEMS INC FREMONT CALIF RICHARD BLISS 64 YEARS OLD CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING FRANCIS CHEN WHO REMAINS A DIRECTOR OF THIS MAKER OF LASERS FOR SURGICAL USE 9402090142 940209 WHAT'S THE MATTER WITH THE WEATHER ANYWAY BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL METEOROLOGISTS HAVE DISMISSED ALL THE USUAL SUSPECTS THIS HAS BEEN THE HARSHEST WINTER IN THE US IN MORE THAN A DECADE YESTERDAY'S STORMS DUMPED MORE THAN A FOOT OF SNOW IN STATES FROM CALIFORNIA TO NEW YORK AND METEOROLOGISTS ARE WONDERING WHY THE OLD EXPLANATIONS FOR ABERRANT WEATHER DON'T WORK THIS YEAR THE ASH SPEWED INTO THE ATMOSPHERE BY THE 1991 ERUPTION OF MOUNT PINATUBO HAS MOSTLY DISSIPATED AND EL NINO AN UNUSUAL MIGRATING WARM SPOT IN THE PACIFIC OCEAN HAS COOLED OFF THERE REALLY ISN'T ANYTHING TO BLAME THIS TIME SAYS BRAD RIPPEY A METEOROLOGIST AT THE NATIONAL WEATHER SERVICE WE SHOULD REALIZE THAT WHAT IS HAPPENING IS WITHIN THE REALM OF NORMALCY IF YOU CONSIDER CLIMATE VARIATION IN OTHER WORDS WEATHER IS SUPPOSED TO BE WACKY FORECASTERS DO KNOW ONE THING THE JET STREAM A HIGHSPEED RIVER OF AIR SOME 20000 FEET ALOFT HAS JUMPED ITS BANKS MOST WINTERS THE JET STREAM TRAVELS ROUGHLY WEST TO EAST ACROSS THE NATION'S MIDSECTION SINCE MIDDECEMBER HOWEVER THE JET STREAM HAS DETOURED INTO ALASKA MOVING FRIGID AIR SOUTH THROUGH CANADA INTO THE NATION'S NORTHERN PLAINS IN THIS CONFIGURATION THE JET STREAM HAS CAUSED POCKETS OF UNUSUALLY WARM WEATHER IN THE PACIFIC NORTHWEST WHILE CREATING A PIPELINE FOR ARCTIC COLD IN THE HEARTLAND THE RECORDS ARE PILING UP SO FAR A DOZEN US CITIES HAVE RECORDED THEIR COLDEST DAY FOR ANY DATE IN HISTORY STATES IN THE NORTHEAST HAVE HAD THEIR THIRD COLDEST JANUARY WHICH IS USUALLY THE COLDEST MONTH OF THE YEAR IN ABOUT A CENTURY THE TEMPERATURES LAST MONTH IN CHICAGO NEW YORK CITY AND MINNEAPOLIS AVERAGED 5 DEGREES 6 DEGREES AND 7 DEGREES BELOW NORMAL RESPECTIVELY THE ALIGNMENT OF THE JET STREAM IS ALSO PULLING OCEAN MOISTURE OVER THE NORTHEAST AND THE UNUSUALLY COLD TEMPERATURES MEAN MORE SNOW AND LESS RAIN PARKERSBURG W VA FOR EXAMPLE WAS BURIED BY 40 INCHES OF SNOW IN JANUARY MORE THAN IT RECEIVED DURING THE PAST TWO WINTERS COMBINED MOST METEOROLOGISTS AGREE THAT OCEAN TEMPERATURES AND VOLCANOES AFFECT THE CLIMATE BUT THE WEATHER LIKE THE ECONOMY IS SO CHAOTIC THAT THERE IS LOTS OF ROOM FOR EXPERTS TO MAKE A LIVING ARGUING OVER HOW THINGS CHANGE AND WHEN GET 10 METEOROLOGISTS TOGETHER AND THEY'LL ALL HAVE DIFFERENT OPINIONS ABOUT WHAT CAUSED THE WEATHER AND HOW TO FORECAST IT SAYS CHARLES NOTIS A METEOROLOGIST AND COOWNER OF FREESENOTIS WEATHER OF DES MOINES IOWA AND EVEN THOUGH METEOROLOGISTS CAN'T PINPOINT A CAUSE THEY PERSIST IN PRESSING THEIR OWN THEORIES SOME EL NINO WATCHERS FOR EXAMPLE SAY THE RECENT COOLING OF THE PATCH OF WATER SIGNALS A HIGHER RISK OF SUMMER DROUGHT IN THE MIDWEST SUN WATCHERS ARE GEARING UP FOR THE ARRIVAL OF A PERIOD OF LOW SOLAR ACTIVITY WHICH THEY CALL A DOUBLE SUNSPOT MINIMUM IN A COUPLE OF YEARS THEY TRY TO CORRELATE WEATHER PATTERNS ON EARTH WITH THE SUN THE RECENT SPATE OF WEIRD WEATHER HAS GIVEN GRIST TO VOLCANO WATCHERS WHO THEORIZE THAT THE DEBRIS PUMPED INTO THE ATMOSPHERE BY CATASTROPHIC ERUPTIONS CAN DEFLECT ENOUGH OF THE SUN'S HEAT TO CAUSE A SHIFTING OF THE JET STREAM THE ERUPTION OF MOUNT PINATUBO IN THE PHILIPPINES FOR EXAMPLE WAS FOLLOWED BY AN UNUSUALLY COOL SUMMER IN 1992 AND THEN A WET SUMMER IN THE US THE JET STREAM PLAGUING THE US THIS WINTER IS ALSO UNUSUALLY PERSISTENT BUT MOST METEOROLOGISTS SAY THE ASH FROM MOUNT PINATUBO PROBABLY ISN'T TO BLAME ANYMORE WE'VE SEEN THE CLIMATE ALTERED FOR A COUPLE YEARS SAYS PETER LEAVITT CHIEF EXECUTIVE OFFICER OF WEATHER SERVICES CORP BEDFORD MASS NOW IT HAS TO FIND ITS WAY BACK SO WHEN WILL THE WEATHER RETURN TO SOMETHING APPROACHING NORMAL THE HEAVY RAINS AND MUDSLIDES IN CALIFORNIA THIS WEEK MAY SIGNAL A CHANGING COURSE FOR THE JET STREAM BY NEXT WEEK METEOROLOGISTS SAY TEMPERATURES COULD REACH THE 40S IN THE NORTHEASTERN UNITED STATES BUT NOBODY IS READY TO PREDICT AN END TO THE UNUSUAL WEATHER JUST YET 9402090141 940209 FIELDCREST CANNON INC'S RAILROAD EDEN NC FIELDCREST CANNON INC SAID THE PROSPECTIVE BUYERS OF ITS BANGOR & AROOSTOOK RAILROAD IN MAINE HAVE TOLD THE TEXTILE COMPANY THAT THEY WON'T CLOSE ON THE TRANSACTION THE RAILROAD WAS RECENTLY ACQUIRED BY FIELDCREST CANNON AS PART OF ITS ACQUISITION OF AMOSKEAG CO THE RAILROAD WAS TO BE ACQUIRED BY BAR ACQUISITION CO GREENWICH CONN A COMPANY CREATED FOR THE PURPOSE OF MAKING THE ACQUISITION THE PURCHASE PRICE WAS TO BE 288 MILLION FIELDCREST SAID WHEN IT ANNOUNCED THE DEAL LAST SEPTEMBER FIELDCREST SAID IT'S HOLDING TALKS WITH OTHER PARTIES INTERESTED IN BUYING THE RAILROAD 9402090140 940209 INTERNATIONAL SINGAPORE TELECOM IN VENTURE SINGAPORE SINGAPORE TELECOM AND THREE OTHER PARTIES TUESDAY SIGNED A JOINTVENTURE AGREEMENT TO ESTABLISH A COMPANY THAT WILL DEVELOP OPERATE AND MANAGE A RESEARCH AND DEVELOPMENT PARK THE PARTNERS OF TELETECH PARK PTE LTD ARE SINGAPORE TELECOM WITH A 40 EQUITY A SUBSIDIARY OF THE GOVERNMENT'S TELECOMMUNICATION AUTHORITY OF SINGAPORE 10 TECHNOLOGY PARKS PTE LTD 25 AND SINGAPORE TECHNOLOGIES VENTURES PTE LTD 25 9402090139 940209 USAIR SLASHES FARES TARGETING BUSINESS TRAVEL CARRIER GIVING RISKY REPLY TO CONTINENTAL'S PLAN FOR EXPANSION IN EAST BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL USAIR SLASHED FARES COMMONLY USED BY BUSINESS TRAVELERS BY AS MUCH AS 50 ON MANY EAST COAST ROUTES A RISKY RESPONSE TO CONTINENTAL AIRLINES' PLAN TO EXPAND ITS LOWFARE SERVICE IN THE EAST THE USAIR GROUP INC UNIT THE NATION'S SIXTHLARGEST AIRLINE SAID IT ALSO IS CUTTING MORE RESTRICTED LEISURE FARES BY AS MUCH AS 70 IN THE SAME 96 MARKETS THE MONEYLOSING CARRIER SAID THE NEW FARES ARE PART OF A PERMANENT PRICE RESTRUCTURING EFFORT NOT JUST SPECIAL LIMITEDTIME DISCOUNTS CONTINENTAL AIRLINES WHICH RECENTLY ANNOUNCED A MAJOR EXPANSION OF ITS LOWPRICED CALITE SERVICE IN SHORTHAUL MARKETS SAID IT WOULD MATCH USAIR IN THOSE MARKETS DALLASBASED SOUTHWEST AIRLINES WHICH ALSO IS ENCROACHING ALBEIT MORE SLOWLY ON USAIR TERRITORY IN THE EAST SAID IT ALSO WOULD MATCH ON COMPETITIVE ROUTES DELTA AIR LINES AMR CORP'S AMERICAN AIRLINES NORTHWEST AIRLINES AND THE OTHER MAJORS SAID THEY PROBABLY WOULD CUT FARES ON COMPETITIVE ROUTES MOST ANALYSTS AGREED USAIR COULD DO LITTLE BUT LOWER FARES BUT THEY WONDERED HOW THE HIGHCOST AIRLINE WOULD SUSTAIN SUCH DEEP FARE CUTS HOW LONG CAN THEY SURVIVE DOING THIS SAID DEAN SPARKMAN AN AVIATION CONSULTANT WITH SPARKMAN COLE & HARRIS IN WASHINGTON OBVIOUSLY THEY DON'T HAVE ANY CHOICE THEY'RE NOT GOING TO GIVE UP THE EAST BUT THEY'RE GOING TO HAVE TO LOSE MONEY WHILE THEY RESTRUCTURE INTERNALLY SINCE LAST YEAR THE ARLINGTON VABASED CARRIER HAS BEEN PLAGUED BY A CRIPPLING PRICE WAR IN CALIFORNIA WITH UAL CORP'S UNITED AIRLINES IT HAS ALSO FACED INCREASING PRESSURE FROM SOUTHWEST AND CONTINENTAL ALONG THE EAST COAST SOUTHWEST HAS ONLY A FEW DESTINATIONS IN THE EAST BUT IT HAS SAID IT WANTS TO EXPAND BUT THE BIGGEST PROBLEM IS CONTINENTAL'S NEW LOWPRICED CALITE PROGRAM CONTINENTAL HAS SAID IT PLANS TO EXPAND CALITE SERVICE IN MARCH TO MORE THAN 800 FLIGHTS A DAY FROM ABOUT 300 TODAY THE FARES AIMED AT BUSINESS TRAVELERS ARE FOR ONEWAY UNRESTRICTED FLIGHTS WITH NO ADVANCED PURCHASE OR STAYOVER REQUIREMENTS EFFECTIVE YESTERDAY THE 50 REDUCTIONS AFFECT ROUTES IN 96 MARKETS INCLUDING THE CAROLINAS FLORIDA VIRGINIA AND MAJOR DESTINATIONS IN THE NORTHEAST USAIR SAID IN MANY OF THESE MARKETS FREE COMPANION FARES ARE AVAILABLE ALTHOUGH SOME RESTRICTIONS APPLY LEISURE ROUNDTRIP TICKET PRICES IN THE SAME MARKETS WERE CUT BY 70 BUT THOSE FARES REQUIRE STAYOVERS SEVENDAY ADVANCE PURCHASE AND ARE NONREFUNDABLE WHILE MOST OF THE AFFECTED ROUTES ARE SHORTHAUL SUCH AS CHARLOTTE NC TO BALTIMORE THE PRICE REDUCTIONS ALSO INCLUDE SOME SELECTED MEDIUMRANGE ROUTES SUCH AS ORLANDO FLA TO BUFFALO NY USAIR SAID THE FARE REDUCTIONS AFFECT NEARLY ONEQUARTER OR 600 OF ITS 2500 DAILY FLIGHTS A USAIR SPOKESMAN DESCRIBED THE CUTS AS VERY DRAMATIC FOR INSTANCE A NONRESTRICTED REFUNDABLE ONEWAY FARE FROM CHARLOTTE TO BALTIMORE PREVIOUSLY 354 IS NOW 169 THE EAST IS THE HEART OF USAIR HE SAID AND WE'RE MAKING IT CLEAR THAT WE'RE GOING TO DEFEND OUR TURF ON A BROADER LEVEL ANALYSTS CALLED USAIR'S ANNOUNCEMENT YET ANOTHER SIGNAL THAT SMALLER LOWCOST AIRLINES SUCH AS SOUTHWEST AND CONTINENTAL HAVE DRIVEN DOWN THE COST OF DOING BUSINESS AND SERIOUSLY WOUNDED THE MAJORS IT'S JUST A BYPRODUCT OF THE MARKETPLACE SAID MR SPARKMAN THE WASHINGTON CONSULTANT AND IT'S GOING TO CONTINUE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING USAIR GROUP WAS DOWN 25 CENTS CLOSING AT 14125 USAIR SAID THE LOWER FARES AREN'T PART OF ITS PREVIOUSLY ANNOUNCED PLAN TO CHANGE FLIGHT SCHEDULES ON ITS ROUTES OF LESS THAN 500 MILES MORE THAN TWOTHIRDS OF ITS ROUTE NETWORK THAT PLAN CALLED PROJECT HIGH GROUND IS AIMED AT LOWERING EXPENSES ON THOSE ROUTES BY BOOSTING PRODUCTIVITY AND OPERATING EFFICIENCIES THE CARRIER EARLIER SAID IT WOULD BEGIN CHANGING FLIGHT SCHEDULES ON SOME OF THOSE ROUTES STARTING NEXT WEEK WITH THE PROGRAM GRADUALLY PHASED IN THIS YEAR 9402090138 940209 ANHEUSERBUSCH POSTS 32 PROFIT INCREASE FOR FOURTH QUARTER ST LOUIS ANHEUSERBUSCH COS SAID FOURTHQUARTER EARNINGS ROSE 32 ON HIGHER BEER SALES PARTLY REFLECTING THE ROLLOUT OF ITS BUDWEISER ICE DRAFT BEER THE NATION'S LARGEST BREWER SAID IT WOULD SEEK TO RAISE PRICES ON ITS LINE OF BUDWEISER PREMIUM BEERS THIS YEAR ALTHOUGH AT RATES BELOW THE CONSUMER PRICE INDEX SUCH A MOVE WOULD HELP OFFSET LOWER PRICES IT HAS BEEN FORCED TO CHARGE IN CALIFORNIA WHERE AN INTENSE BEER PRICE WAR CONTINUES FOR THE QUARTER ANHEUSER REPORTED EARNINGS OF 1668 MILLION OR 62 CENTS A SHARE COMPARED WITH 1616 MILLION OR 58 CENTS A SHARE A YEAR EARLIER SALES ROSE 47 TO 285 BILLION FROM 273 BILLION THERE WERE 109 MILLION FEWER COMMON SHARES OUTSTANDING IN THE LATEST PERIOD FULLYEAR EARNINGS FELL 35 TO 5945 MILLION OR 217 A SHARE FROM 9175 MILLION OR 322 A SHARE IN 1992 THE 1993 FIGURES INCLUDE A PRETAX RESTRUCTURING CHARGE OF 565 MILLION EQUAL TO 126 A SHARE WHILE THE PRIORYEAR FIGURES INCLUDE AN ACCOUNTING CHARGE OF 767 MILLION OR 26 CENTS A SHARE SALES LAST YEAR TOTALED 1151 BILLION UP LESS THAN 1 FROM 1139 BILLION IN 1992 ANHEUSER'S THEMEPARK BUSINESS BUSCH ENTERTAINMENT CORP REPORTED RECORD SALES AND EARNINGS LAST YEAR AND WAS A SIGNIFICANT CONTRIBUTOR TO OVERALL RESULTS THE COMPANY SAID CURRENTQUARTER SALES VOLUME WILL BE UP AT LEAST 4 FROM A YEAR EARLIER REFLECTING ICE DRAFT'S CONTINUED ROLLOUT AND INVENTORY STOCKING PRIOR TO THE EXPIRATION OF LABOR CONTRACTS ANHEUSER SAID LAST YEAR'S FIRSTQUARTER SALES WERE HURT BY AN UNUSUALLY COLD WET SPRING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ANHEUSER STOCK ROSE 125 CENTS OR 03 TO CLOSE AT 48 A SHARE 9402090137 940209 WHAT'S BIG AND PINK WITH YELLOW SPOTS BRITAIN'S MR BLOBBY HAILED AS BOTH OAF AND ICON HE MUMBLES AND STUMBLES INTO BRITISH POPULAR CULTURE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL MANCHESTER ENGLAND THE FANS SQUEALING CLAPPING AND DANCING PUSH TOWARD THE STAGE AT THE CONVENTION CENTER HERE AS SECURITY GUARDS TRY TO KEEP ORDER GROUPIES REACH OVER THE BARRICADES TO SQUEEZE AND KISS THE SUPERSTAR THE OBJECT OF ALL THIS ATTENTION A CLUMSY 7FOOTTALL PEARSHAPED PIECE OF PINKFOAM RUBBER WHOSE ENTIRE VOCABULARY CONSISTS OF ONE WORD BLOBBY MR BLOBBY AS HE IS KNOWN TO ALL FIRST APPEARED AS A CANDIDCAMERA GAG ON A BBC TELEVISION SHOW NOW HE IS THE LAND'S LEADING CELEBRITY BRITONS CAN'T GET ENOUGH OF HIS YELLOW SPOTS GREEN WANDERING EYES SILLY GRIN AND PENCHANT FOR TRIPPING BUMBLING AND KNOCKING OVER STAGE SETS HIS SMASHHIT SINGLE DEFIED 33TO1 ODDS TO TOP THE CHRISTMAS POP CHARTS COSTING THE WILLIAM HILL BETTING FIRM 120000 MR BLOBBY WAS A COVERBOY FOR THE ECONOMIST AND TABLOIDS HAVE NOMINATED HIM FOR EVERYTHING FROM PRIME MINISTER TO MANAGER OF ENGLAND'S NATIONAL SOCCER TEAM PEOPLE JUST GO BALLISTIC FOR BLOBBY SAYS MICHAEL DINNING WHO AS THE MAN APPEARING PUBLICLY IN THE BLOBBY COSTUME RECENTLY HAD TO OUTRUN 750 STAMPEDING CHILDREN AT A SCHOOLYARD PHOTOSHOOT IT'S GONE FROM BEING ENTHUSIASTIC TO BEING MANIACAL THIS HAS CAUSED SOME SOUL SEARCHING HOW COULD THE LAND OF MILTON SHAKESPEARE BYRON AND DICKENS PRODUCE THIS SOME THINK MR BLOBBY IS JUST THE LATEST DISPLAY OF BRITISH ECCENTRICITY IN THE MOLD OF MONTY PYTHON AND BENNY HILL IT'S A BIT OF ESCAPISM REALLY EXPLAINS CHARLES SPUNGIN A FINANCE STUDENT WHO KEEPS AN INFLATABLE BLOBBY IN HIS CAR OTHERS ARE SURE HE IS A BIG PINK SYMBOL OF NATIONAL DECLINE MR BLOBBY'S CRITICS SAY THE AFFECTION FOR THIS LARGE PIECE OF RUBBER LACKING BOTH PERSONALITY AND MOTOR SKILLS IS A SIGN OF BRITAIN'S CULTURAL AND POLITICAL MALAISE THE CONSERVATIVE GOVERNMENT IS SCANDALRIDDEN THE ROYALS ARE OUT OF FAVOR THE NATIONAL SOCCER TEAM IS OUT OF THE WORLD CUP IN THIS ENVIRONMENT A BUMBLING OAF WHO MUTTERS BLOBBY BLOBBY BLOBBY SPEAKS THE NATIONAL MIND IT IS A NIHILISTIC COMMENT ON THE VACUUM OF BRITISH POLITICS AND ALL THE OTHER THINGS WE'RE DISAPPOINTED IN ASSERTS PETER COLLETT AN OXFORD UNIVERSITY SOCIAL PSYCHOLOGIST AT THIS JUNCTURE IN HISTORY WHERE THINGS ARE BAD AND PEOPLE ARE WALKING AROUND WITH LONG FACES AND NOTHING SEEMS TO BE WORKING BLOBBY SEEMS A SOLUTION TO THE VACUUM STILL OTHERS ARE MORE ACERBIC IN THEIR BLOBBY ANALYSIS I THINK IT'S NONSENSICAL AND ABSURD AND I DON'T CARE TO DISCUSS IT DECLARES LORD STODDART OF SWINDON HARRODS DEPARTMENT STORE REFUSES TO SELL BLOBBY MERCHANDISE CALLING IT RATHER TAWDRY AND THE BBC'S OWN RADIO 1 DECLINED TO PLAY MR BLOBBY AS HIS SONG CLIMBED THE CHARTS A TONGUEINCHEEK COMMENTARY IN THE TIMES OF LONDON ARGUED THAT MR BLOBBY REVEALS BRITONS ARE REALLY AS LOWBROW AS AMERICANS AND JAPANESE CREATORS OF MARIO BROTHERS THE SIMPSONS AND NINJA TURTLES THIS IS SUPPOSED TO BE THE LAND OF THE SAINTED BARD NOT BLOODY MR BLOBBY IT SAID MR BLOBBY'S HANDLERS THINK THE CRITICS ARE TAKING THE INARTICULATE ICON TOO SERIOUSLY HE'S A CELEBRATION OF BRITISH LIFE SAYS HIS CREATOR THE BBC'S MICHAEL LEGGO HE'S AN ENTHUSIAST ABOUT EVERYTHING HE'S FILLED WITH DELIGHT HE WEARS HIS HEART ON HIS SLEEVE AND ACTS ON IMPULSE THERE'S A LITTLE OF THAT IN ALL OF US APPARENTLY MR BLOBBY'S PUBLIC APPEARANCES CAUSE TRAFFIC JAMS AND SECURITY GUARDS SAY HE OUTDRAWS THE ROYAL FAMILY MR BLOBBY'S VIDEO HAS SOLD MORE THAN 330000 COPIES AND MR LEGGO SAYS HE IS CONSIDERING PLANS FOR A MOVIE SOME BLOBBY BACKERS JUST ANNOUNCED PLANS TO BUILD A FANTASY VILLAGE FEATURING MR BLOBBY THERE HAVE BEEN REPORTS OF BLOBBY CARS BLOBBY TATTOOS A BLOBBY COPTER AND IN WARWICKSHIRE A STATUE OF A DECEASED LORD DRESSED AS MR BLOBBY MR BLOBBY DEBUTED IN 1992 AS A SERIES OF EIGHT GOTCHA SEGMENTS ON NOEL'S HOUSE PARTY A POPULAR TELEVISION VARIETY SHOW CELEBRITIES WERE LURED INTO THE SETUP THINKING THEY WERE GUESTS ON A NEW CHILDREN'S SHOW BUT THEN MR BLOBBY PLAYED ON THE SHOW BY BARRY KILLERBY A SHAKESPEAREAN ACTOR ABUSED THEM BY TRIPPING OVER THE SET AND DESTROYING THE PROPS RUGBY PLAYER WILL CARLING BECAME SO FRUSTRATED THAT HE KICKED THE CHARACTER AND TOLD HIM TO SHUT UP BLOBBY NOW APPEARS ON THE SHOW EVERY OTHER WEEK MR LEGGO THINKS THE HOUSE PARTY ALREADY BROADCAST IN NEW ZEALAND AND AUSTRALIA COULD BE THE VEHICLE TO BRING BLOBBY TO THE US BUT IT'S NOT AT ALL CLEAR AMERICANS WOULD FALL FOR MR BLOBBY NOR HOW LONG HE WILL LAST IN BRITAIN JACKIE FERGUSON OF LEISURE CONCEPTS INTERNATIONAL INC A COMPANY THAT LICENSES SIMILAR FANTASY CHARACTERS PREDICTS BLOBBY WILL BURN OUT SOON AMERICANS SHE THINKS WOULD FIND HIM POINTLESS I DON'T HONESTLY SEE HIM MOVING STATESIDE SHE SAYS BUT WITH MR BLOBBY ALREADY NETTING SOME 15 MILLION IN BLOBBY PARAPHERNALIA MERCHANDISERS AREN'T LIKELY TO LET HIM DIE WITHOUT A STRUGGLE THERE'S NO REASON WHY MR BLOBBY CAN'T GO ON WELL INTO THE '90S SAYS ALISTAIR TONNISON WHOSE GIFT CORP IN NORTHAMPTON HAS SOLD 250000 BLOBBY MRS BLOBBY AND BABY BLOBBY DOLLS PAJAMA CASES AND CAR DECORATIONS IN MANCHESTER WHERE MR BLOBBY IS VISITING A TRADE SHOW FOR MOBILE HOMES SOME 2000 CHILDREN AND THEIR PARENTS HAVE COME TO SEE HIM RATHER THAN THE HOMES AS FATHERS SNAP PICTURES MOTHERS SING THE BLOBBY TUNE WITH THE CHILDREN WHO SWARM AROUND BOOTH NO 50 THE MR BLOBBY MERCHANDISING UNIT I LIKE HIM WHEN HE GOES BLOBBY BLOBBY BLOBBY' SAYS FRANCESCA MURRAY AGE 6 WEARING MR BLOBBY FACE PAINT ADDS VICTORIA NEWTON 8 SPORTING A BLOBBY IS BEST BUTTON I LIKE IT WHEN HE ATTACKS PEOPLE AND I LIKE HIS YELLOW SPOTS AFTER THE MANCHESTER PERFORMANCE HE GETS A LOVE LETTER FROM JULIE HAYDEN 10 WHO ENCLOSES HER PHONE NUMBER AND A NOTE FROM ASHLEIGH IN TYNE AND WEAR ASKING HIM TO TEA AND IT'S NOT JUST KID STUFF JOHN REDWOOD THE SECRETARY OF STATE FOR WALES TOLD A GROUP OF BUSINESSMEN THAT HE ASPIRED TO BLOBBYLIKE POPULARITY MR BLOBBY IS A ROUND NICE PERSON AND NO ONE HAS A BAD THING TO SAY ABOUT HIM HE EXPLAINED A TABLOID THE DAILY MIRROR PROCLAIMED MR BLOBBY PRIME MINISTER ONE DAY WHEN JOHN MAJOR WAS OUT OF TOWN SAYING BLOBBY WOULD DRAG US OUT OF THE RED AND INTO THE PINK A SPOKESMAN FOR THE PRIME MINISTER SAYS MR MAJOR IS STILL IN CHARGE THE PRIME MINISTER HAS MANY THINGS ON HIS MIND BUT MR BLOBBY IS NOT FOREMOST AMONG THEM 9402090136 940209 BUSINESS BRIEFS COLUMBIA HEALTHCARE CORP AND HOSPITAL CORP OF AMERICA AS PART OF A CONSENT AGREEMENT WITH THE FEDERAL TRADE COMMISSION ON THEIR PROPOSED MERGER MUST DIVEST HCA'S AIKEN REGIONAL MEDICAL CENTER IN AIKEN SC BANC ONE CORP SIGNED AN AGREEMENT TO BUY AMERICAN HOLDING CO HIGHLAND PARK ILL TERMS WERE NOT DISCLOSED AMERICAN TELEPHONE & TELEGRAPH CO'S AT&T SUBMARINE SYSTEMS UNIT RECEIVED A 20 MILLION CONTRACT FROM GTE CORP'S GTE HAWAIIAN TEL DIVISION TO DESIGN ENGINEER AND INSTALL AN UNDERSEA FIBEROPTIC COMMUNICATIONS SYSTEM FOR HAWAII ECOGEN INC'S CONDOR BIOINSECTICIDE WAS APPROVED BY THE AUSTRALIAN GOVERNMENT FOR USE ON COTTON FRANKLIN ELECTRONIC PUBLISHERS INC REACHED AN AGREEMENT WITH MCGRAWHILL INC TO MAKE AVAILABLE AN ELECTRONIC VERSION OF THE MEDICAL TEXTBOOK PRINCIPLES OF SURGERY COMPANION HANDBOOK ICF KAISER INTERNATIONAL INC ESTABLISHED AN ENVIRONMENTAL CONSULTING AND ENGINEERING COMPANY IN MEXICO WITH TWO CONSULTANTS WHO FORMERLY HELD HIGHRANKING POSITIONS FOR INTERNATIONAL ENVIRONMENTAL AFFAIRS IN THE MEXICAN GOVERNMENT CAPITAL RE CORP FORMED CAPITAL MORTGAGE REINSURANCE CO CAPITALIZED AT 120 MILLION TO SERVE THE MORTGAGE GUARANTY INSURANCE INDUSTRY 9402090135 940209 MARKETING & MEDIA MTV IN PACT WITH FINGERHUT NEW YORK MTV NETWORKS SAID IT REACHED AN AGREEMENT FOR FINGERHUT COS MINNEAPOLIS TO TAKE AND FILL ORDERS AND WAREHOUSE MERCHANDISE FOR ITS NEW HOMESHOPPING PROGRAMMING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FINGERHUT SHARES ROSE 9 OR 2375 TO 28875 A SHARE MTV NETWORKS A UNIT OF VIACOM INC RECENTLY ANNOUNCED PLANS FOR A SIXMONTH TEST TO SELL MUSIC AND RELATED PRODUCTS OVER HOMESHOPPING PROGRAMMING ON ITS THREE CABLETV NETWORKS 9402090132 940209 GE CAPITAL'S PURCHASE STAMFORD CONN GE CAPITAL SAID ITS EUROPEAN FLEET SERVICES BUSINESS COMPLETED THE ACQUISITION OF THE VEHICLE FINANCING BUSINESS OF SKANDIC BILFINANS IN STOCKHOLM FOR AN UNDISCLOSED SUM THE BUSINESS WHICH HAS 37000 VEHICLES UNDER LEASE AND MANAGEMENT WAS ACQUIRED FROM FINANS SKANDIS A WHOLLY OWNED SUBSIDIARY OF SKANDANAVISKA ENSKILDA BANKEN GE CAPITAL THE FINANCIAL SERVICES UNIT OF GENERAL ELECTRIC CO LEASES AND MANAGES MORE THAN 700000 CARS TRUCKS AND SPECIALTY VEHICLES THROUGH ITS GE CAPITAL FLEET SERVICES BUSINESS 9402090131 940209 LETTERS TO THE EDITOR DISMANTLING WARHEADS IS GOOD FOR BUSINESS ALBERT R HUNT IN HIS JAN 13 POLITICS & PEOPLE COLUMN CLINTON'S RUSSIA POLICY IS NO SHINING SUCCESS ADDRESSES SEVERAL IMPORTANT ASPECTS OF US POLICY TOWARD RUSSIA AS MR HUNT POINTS OUT MORE THAN 25000 NUCLEAR WEAPONS ARE STILL DEPLOYED IN RUSSIA UKRAINE BELARUS AND KAZAKHSTAN THIS ADMINISTRATION IS COMMITTED TO FACILITATING THEIR DISMANTLEMENT AND DESTRUCTION FURTHERMORE IT SHARES MR HUNT'S VIEW THAT THE US SHOULD HELP FUND AND LAUNCH NEW BUSINESSES IN RUSSIA SINCE SENS NUNN AND LUGAR SPONSORED THE 1991 LEGISLATIVE ACT THAT PROVIDES DOLLARS TO ASSIST FORMER SOVIET NUCLEAR AND CHEMICAL WEAPONS DISMANTLEMENT THEY HAVE EXHORTED THEIR COLLEAGUES THE PUBLIC AND TWO ADMINISTRATIONS TO STAY COMMITTED TO THIS TASK THE NUNNLUGAR INITIATIVE HAS BEEN AN ESSENTIAL STIMULUS FOR PROGRESS TO DATE THE RECENT KIEVMOSCOW AGREEMENT TO DISMANTLE UKRAINE'S NUCLEAR WARHEADS OVER THE NEXT SEVERAL YEARS WOULD HAVE BEEN UNLIKELY WITHOUT THE UNRELENTING DIPLOMATIC EFFORTS OF KEY ADMINISTRATION OFFICIALS AND SENS NUNN AND LUGAR COMPLEMENTING THE DIPLOMATIC EFFORTS ARE TANGIBLE SIGNS OF US FINANCIAL SUPPORT TO DATE ALMOST 120 MILLION HAVE BEEN COMMITTED UNDER CONTRACT AND NEARLY 5000 ITEMS DELIVERED IN ACCORDANCE WITH ABOUT 30 DIFFERENT BILATERAL AGREEMENTS ANOTHER 350 MILLION IN SUPPORT IS ANTICIPATED FOR 1994 AND MORE THAN 400 MILLION FOR 1995 RUSSIA UKRAINE BELARUS AND KAZAKHSTAN ARE MAKING SUBSTANTIAL PROGRESS DEACTIVATING THEIR NUCLEAR WEAPONS AND PRESIDENT CLINTON AND PRESIDENT YELTSIN JUST SIGNED A CHEMICAL WEAPONS DISMANTLEMENT AGREEMENT WITH REGARD TO DEFENSE CONVERSION AND NEWBUSINESS CREATION THIS ADMINISTRATION HAS ENDORSED A FASTTRACK APPROACH PROJECTS ARE ABOUT TO BEGIN IN BELARUS ALSO SECRETARY OF DEFENSE WILLIAM PERRY WITH A TEAM OF EXPERTS FROM SEVERAL AGENCIES RECENTLY VISITED A NUMBER OF RUSSIAN DEFENSE FIRMS WITH HIGH POTENTIAL FOR RAPID TRANSFORMATION TO NONDEFENSE PRODUCTION SOME OF THESE FIRMS HAVE BEEN CARVED OUT FROM LARGER ENTERPRISES SOME ARE NEW BUSINESSES WITH PROMISING COMMERCIAL PRODUCTS AND SERVICES ALL OF THEM NEED US FIRMS AS PARTNERS THE AMERICAN COMPANIES INVOLVED ALL ACHIEVE ACCESS TO NEW TECHNOLOGIES POTENTIAL NEW MARKETS AND ECONOMIC PRODUCTION CAPABILITY RECENTLY COMMITTED US FINANCIAL ASSISTANCE IS THE LAST LINK TO A FAST RUNNING START FOR THESE RUSSIAN COMPANIES 9402090130 940209 INTERNATIONAL REUTERS'S PRETAX PROFIT ROSE 15 LAST YEAR STOCK SPLIT IS PLANNED LONDON REUTERS HOLDINGS PLC BENEFITING FROM BOOMING BUSINESS IN FINANCIAL MARKETS REPORTED A 15 INCREASE IN PRETAX PROFIT ON A 20 RISE IN REVENUE LAST YEAR AND SAID IT WILL SPLIT ITS SHARES THE INFORMATION AND FINANCIALSERVICES GROUP'S EARNINGS ROSE TO 440 MILLION 6523 MILLION FROM 383 MILLION SLIGHTLY HIGHER THAN MOST ANALYSTS' PREDICTIONS PERSHARE EARNINGS JUMPED 17 TO 72 PENCE FROM 618 PENCE REVENUE MEANWHILE CLIMBED TO 187 BILLION FROM 157 BILLION BUT EXCLUDING THE EFFECT OF CURRENCY FLUCTUATIONS REVENUE ROSE 8 REUTERS SAID IT PLANNED TO SPLIT ITS ORDINARY SHARES INTO FOUR NEW SHARES AND THAT ITS AMERICAN DEPOSITARY SHARES WILL BE REDEFINED TO COMPRISE SIX SHARES INSTEAD OF THE CURRENT THREE THE COMPANY ALSO RAISED THE FINAL DIVIDEND TO 198 PENCE FROM 159 PENCE FOR A TOTAL DIVIDEND FOR THE YEAR OF 26 PENCE A RISE OF 23 FROM 1992'S PAYOUT ON THE LONDON STOCK EXCHANGE REUTERS SHARES JUMPED 6425 PENCE OR 34 TO 1970 A SHARE WHILE THE REST OF THE MARKET FINISHED ABOUT 05 HIGHER 9402090129 940209 TECHNOLOGY SEMICONDUCTOR MARKET SHOWED IMPROVEMENT IN THE LATEST MONTH SAN JOSE CALIF THE SEMICONDUCTOR INDUSTRY CONTINUED TO SHOW IMPROVEMENT DRIVEN BY DEMAND IN THE PERSONALCOMPUTER SECTOR AS THE INDUSTRY'S LEADING INDICATOR ROSE IN JANUARY NEW ORDERS FOR THE NORTH AMERICAN MARKET IN JANUARY BASED ON A THREEMONTH MOVING AVERAGE WERE 246 BILLION A 6 INCREASE FROM 232 BILLION RECORDED THE PREVIOUS MONTH JANUARY ORDERS WERE 20 HIGHER THAN THE 205 BILLION POSTED A YEAR EARLIER SEMICONDUCTOR SHIPMENTS FOR JANUARY ALSO BASED ON A THREEMONTH MOVING AVERAGE WERE 230 BILLION A 39 INCREASE FROM THE 222 BILLION IN THE PREVIOUS MONTH SHIPMENTS OR BILLINGS GREW 35 FROM 171 BILLION A YEAR EARLIER 9402090128 940209 INTERNATIONAL HOSOKAWA PRODUCES STIMULUS PACKAGE ANALYSTS EXPECT THE IMPACT ON JAPAN'S ECONOMY TO BE SLIGHT TEMPORARY BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PRIME MINISTER MORIHIRO HOSOKAWA HAMMERED OUT A 140 BILLION STIMULUS PACKAGE THAT MAY NOT GET JAPAN'S ECONOMY RACING BUT SHOULD KEEP IT FROM REVERSING AGAIN THE PACKAGE WHICH INCLUDES A ONEYEAR CUT IN INCOME TAXES TOTALING 547 TRILLION YEN 503 BILLION AND MUCHNEEDED AID FOR THE NATION'S STRUGGLING BANKS OUGHT TO ADD BETWEEN ONE AND TWO PERCENTAGE POINTS OF GROWTH TO THE ECONOMY ANALYSTS SAY BUT THEY WARN THAT THE STEPS WON'T END JAPAN'S DOWNTURN AND WORRY THAT THE TEMPORARY NATURE OF THE TAX CUT MIGHT BLUNT ITS STIMULATIVE EFFECT IT'S NOT THE BEST OUTCOME POSSIBLE BUT IT'S BETTER THAN WAITING FURTHER SAID MITSUBISHI BANK LTD ECONOMIST DONALD KIMBALL AT BEST IT MIGHT JUST SHORE UP THE ECONOMY IN THE MEDIUM TERM THE PACKAGE IS THE RESULT OF A LASTMINUTE COMPROMISE WORKED OUT BY MR HOSOKAWA'S COALITION GOVERNMENT MR HOSOKAWA HAD PROPOSED RAISING SALES TAXES TO PAY FOR THE INCOMETAX REDUCTION BUT THE NOTION THREATENED TO SPLIT HIS GOVERNMENT AND HURT HIM IN THE POLLS LAST NIGHT A HUMBLED MR HOSOKAWA ISSUED AN APOLOGY TO THE NATION OVER THE UPROAR MORE THAN ANYTHING THE PROCEDURE WAS ABRUPT HE SAID I MUST APOLOGIZE SINCERELY TO THE PEOPLE MR HOSOKAWA RUSHED OUT THE MEASURES IN ORDER TO HAVE SOMETHING TO SHOW PRESIDENT CLINTON WHEN THE TWO LEADERS MEET IN WASHINGTON ON FRIDAY THE US HAS BEEN PRESSING JAPAN TO BOOST ITS ECONOMY SO THAT IT WILL IMPORT MORE BUT ECONOMISTS SAY THE PACKAGE PROBABLY WON'T FULLY SATISFY MR CLINTON THE US HAS BEEN WAITING FOR JAPAN TO PULL OUT THE STOPS IN STIMULATING DOMESTIC DEMAND SAID JAMES VESTAL ECONOMIST AT BARCLAYS DE ZOETE WEDD LTD THEY HAVEN'T WASHINGTON ALSO IS DEMANDING THAT JAPAN SIGN AGREEMENTS TO OPEN SPECIFIC SECTORS TO MORE IMPORTS BUT THOSE TALKS ARE CONSIDERED STALLED IN WASHINGTON WHERE US OFFICIALS HAVE ARGUED THAT ONLY JAPAN HAS THE WHEREWITHAL TO CUT TAXES AND SPUR WORLD ECONOMIC GROWTH TREASURY SECRETARY LLOYD BENTSEN RESPONDED CAUTIOUSLY THIS IS A MODEST STEP EVERY LITTLE BIT HELPS HE SAID IT REMAINS TO BE SEEN WHETHER THIS PACKAGE WILL BE ADEQUATE TO SPUR STRONG DEMAND AND TO REDUCE THE CURRENT ACCOUNT SIGNIFICANTLY US OFFICIALS SAY IT'S HARD TO TELL HOW MUCH STIMULUS WILL RESULT FROM A JAPANESE GOVERNMENT SPENDING PACKAGE WITHOUT KNOWING HOW MUCH OF THE MONEY WOULD HAVE BEEN SPENT OTHERWISE OR WHERE OFFSETTING SPENDING CUTS ARE BEING PROPOSED AS US EXPERIENCE ILLUSTRATES A TAX CUT BILLED AS TEMPORARY IS LESS POTENT THAN A PERMANENT CUT BECAUSE CONSUMERS ARE MORE LIKELY TO SAVE THE WINDFALL THAN SPEND IT IN THE END IT SEEMS US PRESSURE ULTIMATELY SAVED MR HOSOKAWA BY FORCING A COALITION COMPROMISE ON TAXES MOST POLITICIANS FELT IT WOULD HAVE BEEN A DISASTER FOR MR HOSOKAWA TO MEET MR CLINTON EMPTYHANDED THE HOSOKAWA ADMINISTRATION IS IN A STATE OF TOTAL CHAOS AND ON THE VERGE OF IMPLOSION POLITICAL COMMENTATOR MINORU MORITA SAID THE DAY BEFORE THE TAX COMPROMISE WAS REACHED BUT THE JAPANUS SUMMIT CAN BE DESCRIBED AS THE SAVIOR FOR MR HOSOKAWA MORE THAN ANY POSTWAR JAPANESE PRIME MINISTER MR HOSOKAWA HAS DRAWN HIS POWER FROM HIS SKYHIGH POPULARITY WHICH HAS STEMMED IN PART FROM HIS CONFIDENT IMAGE YET IN CONTRAST WITH THE STEADY WAY HE SEEMED TO HANDLE OTHER ISSUES OPENING THE RICE MARKET AND ENACTING POLITICAL REFORM MR HOSOKAWA HAS SEEMED WEAK AND INDECISIVE ON THE TAX MATTER THE BATTLE HAS BADLY BRUISED HIM CONTRIBUTING TO A SLIDE OF NEARLY 20 PERCENTAGE POINTS IN HIS POPULARITY RATINGS MR HOSOKAWA'S IMAGE HAD ANOTHER BLOW WITH A REPORT PUBLISHED THIS WEEK IN THE MAGAZINE BUNGEI SHUNJU ALLEGING EXTENSIVE FINANCIAL TIES BETWEEN MR HOSOKAWA'S FAMILY AND A SCANDALTAINTED TRUCKING FIRM SIMILAR ALLEGATIONS SURFACED AGAINST MR HOSOKAWA LAST YEAR BUT DID LITTLE DAMAGE THE STIMULUS PLAN ANNOUNCED TUESDAY REPRESENTS JAPAN'S FOURTH ATTEMPT IN 18 MONTHS TO REV UP THE ECONOMY THE CENTERPIECE IS 585 TRILLION YEN IN TAX CUTS INCLUDING 547 TRILLION YEN IN NATIONAL AND LOCAL INCOMETAX REDUCTIONS OTHER TAX BREAKS INCLUDE REDUCING NEWCAR SALES TAX TO 3 FROM 45 A MOVE THAT COULD BOOST SALES BY 50000 VEHICLES A YEAR IN ADDITION THE PACKAGE CALLS FOR 72 TRILLION YEN IN SPENDING AND INVESTMENT FOR ITEMS SUCH AS HOME FINANCING AND NEW MEDICAL AND RESEARCH FACILITIES THE STEPS ALSO INCLUDE CHEAP LOANS AND OTHER HELP FOR SMALL BUSINESSES UNLIKE PREVIOUS PACKAGES THIS ROUND ALSO HAS SIZABLE PROVISIONS TO STIMULATE THE MORIBUND LAND MARKET AND TO HELP BANKS RESTRUCTURE BAD LOANS ANALYSTS WARN HOWEVER THESE MEASURES WON'T BE SUFFICIENT TO SOLVE MANY OF THE PROBLEMS AFFECTING THE JAPANESE BANKING AND REALESTATE SECTORS WHICH ARE A DRAG ON GROWTH LAND WILL BE PURCHASED BY A PRIVATE ENTITY WHICH WILL RECEIVE A 500 BILLION YEN GOVERNMENT GUARANTEE PLUS SUBSIDIES AND NOINTEREST LOANS IN ORDER TO BUY UP LAND AND WAREHOUSE IT UNTIL NEEDED THE GOVERNMENT ALSO WILL LET THE BANKS SET UP SPECIAL COMPANIES TO TAKE OVER RESTRUCTURED OR LOWINTEREST LOANS WHICH WILL THEN BE SOLD BACK TO THE BANKS AT A LOWER VALUE IN THE FORM OF BONDS THE BANK WILL BE ALLOWED TO MOVE THE LOAN OFF ITS BOOKS AND TAKE TAX WRITEOFFS THAT WILL FREE UP FUNDS FOR NEW LENDING ECONOMISTS EXPECT THESE MEASURES TO PROVIDE ENOUGH OF A JOLT TO BUSINESS ACTIVITY TO KEEP THE ECONOMY AFLOAT THIS YEAR BUT THE EFFECT MIGHT NOT BE FELT UNTIL JUNE OR LATER AND EVEN THEN NO ONE EXPECTS THE PACKAGE TO KILL OFF JAPAN'S SLUMP WHICH BEGAN NEARLY THREE YEARS AGO THE CONSENSUS EVEN WITH THE PACKAGE JAPAN'S ECONOMY WILL GROW LESS THAN 1 IN 1994 WHAT'S MORE BUSINESS LEADERS AND ECONOMISTS WORRY THAT THE LASTMINUTE COMPROMISE ON THE INCOMETAX REDUCTION MAY HINDER ITS IMPACT ON CONSUMER SPENDING A TV NEWS PROGRAM ESTIMATED THAT A TYPICAL FAMILY OF FOUR EARNING 46000 A YEAR WILL POCKET JUST 375 IN TAX SAVINGS LAST WEEK MR HOSOKAWA UNVEILED A PLAN TO CUT TAXES BY SIX TRILLION YEN A YEAR TO BE OFFSET THREE YEARS LATER BY MORE THAN DOUBLING THE NATION'S SALES TAX MR HOSOKAWA'S SOCIALIST ALLIES THREATENED TO BOLT FROM HIS GOVERNMENT IF LEVIES WERE RAISED WHILE THE CONSERVATIVE FINANCE MINISTRY RESISTED RAISING TAXES WITHOUT SOME GUARANTEE OF HIGHER LEVIES LATER THE FINAL SOLUTION SPLIT THE DIFFERENCE THE NATIONAL INCOMETAX CUT RETROACTIVE TO JAN 1 WILL BE EFFECTIVE FOR JUST THIS YEAR LATER THIS YEAR LEADERS PROMISED TO DECIDE WHETHER TO EXTEND THE REDUCTION AND HOW TO PAY FOR IT THE TAX REDUCTIONS WILL BE RETURNED TO CONSUMERS IN TWO CHUNKS ONE IN JUNE AND ONE IN DECEMBER THE GOVERNMENT WILL ISSUE ROUGHLY SIX TRILLION YEN IN BONDS TO BRIDGE THE REVENUE SHORTFALL 9402090127 940209 INTERNATIONAL SAS SELLS CHILEAN AIRLINE STAKE STOCKHOLM SCANDINAVIAN AIRLINES SYSTEM CONFIRMED IT IS SELLING ITS 42 STAKE IN CHILEAN AIRLINE LAN CHILE TO TWO OTHER CHILEAN COMPANIES INVERSIONES COSTA VERDE SA AND TRANSNET SA AN SAS SPOKESMAN SAID THE TWO COMPANIES ARE PAYING 19 MILLION FOR THE 95 MILLION SHARES THE SPOKESMAN SAID SAS PAID 30 MILLION FOR THE STAKE FIVE YEARS AGO HOWEVER SAS IS LIKELY TO REALIZE A SMALL CAPITAL GAIN ON THE SALE DUE TO THE DEPRECIATION OF THE SWEDISH KRONA 9402090126 940209 INSIDE TRACK SOME BROKERAGEFIRM CHAIRMEN RECEIVE HEFTY OPTIONS GRANTS BY ALEXANDRA PEERS AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IF WALL STREET'S MILLIONDOLLAR BANKERS CARP ABOUT NOT BEING PAID ENOUGH IT MAY BE BECAUSE THEY KEEP CLOSE TABS ON THE COMPENSATION OF THEIR BOSSES THE BROKERAGEFIRM CHAIRMEN THE 1993 TAKEHOME PAY OF TOP BROKERAGEHOUSE OFFICIALS WILL REMAIN TOP SECRET UNTIL CORPORATE PROXY STATEMENTS ARE RELEASED IN APRIL BUT SOME CLUES ARE OFFERED BY SECURITIES AND EXCHANGE COMMISSION INSIDER FILINGS UNDER SEC REGULATIONS THAT TOOK EFFECT IN 1992 CORPORATE INSIDERS HAVE TO FILE NOT ONLY THEIR STOCKHOLDINGS IN THEIR OWN COMPANIES BUT ALSO THEIR OPTIONS GRANTS AND THE POTENTIAL WEALTH THE OPTIONS REPRESENT ROBERT GREENHILL FOR INSTANCE HIRED IN JUNE AS CHAIRMAN OF SMITH BARNEY SHEARSON THE BROKERAGE UNIT OF TRAVELERS INC RECEIVED 1993 COMPENSATION THAT INCLUDED OPTIONS ON 1333000 SHARES THE OPTIONS ENABLE HIM TO BUY SMITH BARNEY STOCK AT 3450 A SHARE THEY VEST IN SEGMENTS OVER FIVE YEARS BUT THE FIRST TRANCHE WOULD YIELD MR GREENHILL AN IMMEDIATE PRETAX PROFIT GIVEN SMITH BARNEY'S CLOSE YESTERDAY AT 3925 A SHARE OF 475 EACH AS PART OF HIS 1993 COMPENSATION PAINEWEBBER GROUP INC CHAIRMAN DONALD MARRON RECEIVED OPTIONS TO BUY 125000 SHARES OF COMPANY STOCK AT 27 EACH WHICH WAS ALSO YESTERDAY'S CLOSING PRICE THOSE OPTIONS WERE IN ADDITION TO 449850 OPTIONS HE ALREADY OWNED THAT ARE EXERCISABLE AT PRICES AS LOW AS 983 EACH STILL THE VALUE OF THESE HUGE OPTIONS HOLDINGS ALSO ARE VULNERABLE TO MARKET SWINGS LAST FRIDAY AS THE DOW JONES INDUSTRIAL AVERAGE SANK 9624 POINTS INVESTORS TRIMMED 2 TO 3 A SHARE OFF MANY BROKERAGEHOUSE STOCKS IN THE WIDESPREAD BELIEF THAT SECURITIES FIRMS WOULD SUFFER UNDULY IN ANY MARKET CORRECTION THOUGH THE MARKET HAS RECOVERED SOMEWHAT SINCE THEN MOST BROKERAGE STOCKS HAVEN'T THE SHARES OF MERRILL LYNCH & CO THE NATION'S LARGEST BROKERAGE FIRM SLID 2875 TO 41375 ON FRIDAY THE STOCK CLOSED YESTERDAY AT 41625 FOR MERRILL LYNCH CHAIRMAN DANIEL TULLY THE VALUE OF THE 261637 SHARES HE OWNS HAS SHRUNK BY 65409250 THE VALUE OF HIS OPTIONS ASSUMING EACH OF HIS OPTIONS FOR 15 MILLION SHARES WERE EXERCISED AT 3382 OR BELOW HAS SLID BY OVER 4 MILLION MR TULLY DECLINED TO COMMENT BUT A COMPANY SPOKESMAN SAID MR TULLY TAKES A LONGTERM VIEW AND DOES NOT CONCERN HIMSELF WITH DAILY OR SHORTTERM FLUCTUATIONS IN THE MARKET THE BROKERAGE FIRM ADDED THAT ITS STOCK OPTIONS PROGRAM APPLIES TO ANYONE RECEIVING A BONUS PACKAGE INCLUDING VICE PRESIDENTS AND THAT OPTIONS ARE AN INTEGRAL PART OF OUR COMPENSATION PROGRAM FOR EXECUTIVES WE HAVE NO PLANS TO DISCONTINUE THEIR USE SIMILARLY MR GREENHILL OF SMITH BARNEY SHEARSON WAS POTENTIALLY MUCH BETTER OFF LAST THURSDAY WHEN TRAVELERS STOCK CLOSED AT 42 OR 275 HIGHER THAN YESTERDAY THE STOCK'S DECLINE RESULTS IN A 65 REDUCTION IN HIS POTENTIAL PROFIT ON THE OPTIONS HE COULD EXERCISE IMMEDIATELY OTHER BROKERAGE FIRMS HAVE BEGUN MOVING AWAY FROM STOCKOPTION GRANTS IN RECENT YEARS BEAR STEARNS COS FOR INSTANCE ELIMINATED ITS STOCKOPTION PROGRAM IN 1989 REPLACING IT WITH A STOCKPURCHASE PROGRAM MORGAN STANLEY & CO HASN'T AWARDED THEM SINCE 1990 ALTHOUGH CHAIRMAN RICHARD FISHER STILL HOLDS OPTIONS ON 126880 SHARES SALOMON BROTHERS A UNIT OF SALOMON INC PHASED THEM OUT IN 1988 EMPLOYEES DIDN'T VALUE THEM AS HIGHLY AS THE COMPANY DID SAID CHAIRMAN ROBERT DENHAM WHO HOLDS NO OPTIONS TO PURCHASE SALOMON STOCK JAMES CAYNE BEAR STEARNS CHAIRMAN STILL HOLDS 81256 OPTIONS ISSUED IN OR BEFORE 1989 HE ALSO OWNS 32 MILLION SHARES OF BEAR STEARNS STOCK AND HAS COMMITTED HIMSELF TO BUY ANOTHER 450000 SHARES THROUGH THE FIRM'S STOCKPURCHASE PROGRAM THE COMPANY SAID MR CAYNE HAS DEDICATED 50 OF HIS SALARY OVER THE NEXT THREE YEARS TO STOCK PURCHASES 9402090125 940209 TECHNOLOGY & HEALTH PFIZER PURSUES PACT WITH RIVALS TO SELL POOL OF DRUGS TO INSTITUTIONAL BUYERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PFIZER INC IS ACTIVELY PURSUING AN UNPRECEDENTED ALLIANCE WITH OTHER MAJOR DRUG COMPANIES THAT WOULD SELL A POOL OF PRESCRIPTION MEDICINES TO INCREASINGLY POWERFUL PHARMACEUTICAL BUYERS SUCH AN ALLIANCE WOULD GIVE DRUG COMPANIES GREATER NEGOTIATING LEVERAGE WITH INSTITUTIONAL BUYERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS AND COMPANIES THAT MANAGE DRUG BENEFITS FOR EMPLOYERS' HEALTH PLANS THESE BUYERS ARE DEMANDING STEEP DISCOUNTS FROM DRUG COMPANIES AT A MEETING WITH SECURITIES ANALYSTS YESTERDAY HOWEVER PFIZER CHAIRMAN WILLIAM C STEERE JR SAID THAT PUTTING TOGETHER SUCH A CONSORTIUM IS DIFFICULT BECAUSE IT IS HAMPERED BY SQUABBLING AND ANTITRUST CONCERNS ALTHOUGH PFIZER OFFICIALS DECLINED TO IDENTIFY OTHER DRUG MAKERS INVOLVED IN THE NEGOTIATIONS MR STEERE AND EDWARD C BESSEY PFIZER VICE CHAIRMAN DISCUSSED THE DIFFICULTY OF GETTING TOGETHER LARGE RESEARCHBASED COMPANIES WITH DIFFERENT CULTURAL PERSONALITIES AND NEEDS EVEN SO MR STEERE ADDED SUCH AN ALLIANCE ISN'T OUT OF THE QUESTION THE COMPANY HE SAID IS ALSO EXPLORING ALTERNATIVES SUCH AS ACQUISITIONS AND JOINT VENTURES ONE PERSON CLOSE TO THE TALKS SAID A CONSORTIUM LED BY GLAXO INC A UNIT OF GLAXO HOLDINGS PLC AND INCLUDING PFIZER AND BRISTOLMYERS SQUIBB CO AMONG OTHERS CAME CLOSE TO FRUITION LAST YEAR BUT FELL APART OVER DISAGREEMENTS CONCERNING WHICH DRUGS TO INCLUDE IN THE MARKETING POOL THE COMPANIES WERE ALSO PUT OFF BY THE PROMINENT POSITION GLAXO WANTED TO GIVE ITS ULCER DRUG ZANTAC THE PERSON SAID PFIZER AND GLAXO SPOKESMEN DECLINED TO COMMENT A BRISTOLMYERS SPOKESMAN SAID THE COMPANY COULDN'T IMMEDIATELY COMMENT EVERYONE IS TALKING TO EACH OTHER SAID HEMANT SHAH AN INDEPENDENT ANALYST BUT QUESTIONS OF HOW TO HANDLE THE LARGE NUMBER OF COMPETING DRUGS HAVE BEEN A STUMBLING BLOCK HE ADDED D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST SAID THAT PFIZER CAN AFFORD TO SIT BACK AND EVALUATE ITS OPTIONS AT THE ANALYSTS' MEETING HENRY MCKINNELL PFIZER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY IS COMFORTABLE WITH ANALYSTS' 1994 PERSHARE EARNINGS ESTIMATES OF 410 TO 425 IN ONGOING OPERATIONS ADDING THAT THE UPPER END OF THE RANGE APPEARS SOMEWHAT OPTIMISTIC IN 1993 THE COMPANY EARNED 370 A SHARE FROM ONGOING OPERATIONS THE OUTLOOK WAS TOWARD THE LOWER END OF ANALYSTS' ESTIMATES WHICH RANGED FROM 405 TO 450 BEFORE THE MEETING ACCORDING TO ZACK'S INVESTMENT RESEARCH INC PFIZER'S SALES AND EARNINGS GROWTH IN THE FIRST QUARTER WILL BE SLOWER THAN THE FULLYEAR GROWTH RATE BECAUSE OF HIGHER EXPENSES MAINLY IN RESEARCH AND ADVERSE FOREIGN CURRENCY TRANSLATIONS DR MCKINNELL SAID PFIZER'S FORECAST APPEARS TO HAVE CAUSED ITS SHARES TO FALL IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PFIZER WAS QUOTED AT 59375 DOWN 225 DR MCKINNELL HOWEVER SAID PFIZER EXPECTS LOW DOUBLEDIGIT SALES GROWTH IN ONGOING OPERATIONS FROM THE 9 GROWTH IN 1993 9402090124 940209 CBO DISPUTES COST ESTIMATES IN HEALTH PLAN BIGGER DEFICIT IS FORECAST BUT STUDY SEES BENEFITS IN THE CLINTON PROPOSAL BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A LONGAWAITED ANALYSIS BY THE CONGRESSIONAL BUDGET OFFICE SAYS PRESIDENT CLINTON'S HEALTHCARE PLAN WOULD COST THE GOVERNMENT MORE THAN THE WHITE HOUSE PROJECTS AND WOULD INCREASE RATHER THAN DECREASE THE DEFICIT OVER ITS FIRST 10 YEARS IN ADDITION THE REPORT RAISED A NEW POLITICAL OBSTACLE FOR THE WHITE HOUSE BY LISTING ON THE FEDERAL GOVERNMENT'S BOOKS THE HEALTHINSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS WOULD BE REQUIRED TO PAY TO NEW REGIONAL HEALTH ALLIANCES THAT IS LIKELY TO GIVE AMMUNITION TO REPUBLICANS AND OTHER ADMINISTRATION CRITICS WHO CHARGE THAT THE PROPOSAL AMOUNTS TO A HUGE TAX INCREASE THE BUDGET OFFICE'S REPORT RELEASED YESTERDAY PROBABLY WILL BE THE SINGLE MOST IMPORTANT ANALYSIS OF HOW THE CLINTON PLAN HOLDS UP FINANCIALLY THAT'S BECAUSE CONGRESS WILL USE THE FINDINGS IN ITS EVALUATION OF THE ADMINISTRATION'S PROPOSAL THE ADMINISTRATION ITSELF HAS EXTOLLED THE CBO'S CREDIBILITY LAST YEAR FOR INSTANCE IT TOUTED ITS USE OF CBO ECONOMIC FORECASTS IN ITS BUDGET AND IN A RECENT INTERVIEW WITH FINANCIAL REPORTERS THE PRESIDENT SAID THAT WHEN CONGRESS IS IN SESSION THE CBO HAS MORE POWER THAN THE FEDERAL RESERVE BOARD DESPITE ITS HIGHER COST ESTIMATES THE REPORT HOLDS A CONSIDERABLE AMOUNT OF GOOD NEWS FOR THE ADMINISTRATION IT PREDICTS LONGTERM DEFICIT REDUCTION AFTER 2004 IT CONCLUDES THAT THE PLAN WOULD SHAVE NATIONAL HEALTH EXPENDITURES AN ESTIMATED 413 BILLION OVER FIVE YEARS BEGINNING IN 2000 AND IT SAYS THAT BUSINESSES MANY OF WHICH HAVE BEEN CRITICAL OF THE PLAN WOULD IN FACT SEE THEIR HEALTHCARE COSTS REDUCED BY AS MUCH AS 20 BILLION A YEAR BY THE TURN OF THE CENTURY THANKS TO PROPOSED GOVERNMENT SUBSIDIES AND CAPS ON HEALTHINSURANCE PREMIUMS NOT SURPRISINGLY THE WHITE HOUSE CHOSE TO FOCUS ON THOSE FINDINGS THE VERY IMPORTANT THINGS SEEM TO BE QUITE POSITIVE SAID ALICE RIVLIN DEPUTY WHITE HOUSE BUDGET DIRECTOR AND FORMER CBO DIRECTOR CBO CONFIRMS THAT IT IS POSSIBLE TO COVER EVERYONE IN THE COUNTRY WITH THIS KIND OF HEALTH INSURANCE AND STILL GET THE RATE OF GROWTH OF NATIONAL HEALTH EXPENDITURES LOWER IN A FEW YEARS THEY ALSO AGREE THAT EVENTUALLY THE DEFICIT WILL COME DOWN THE CBO HAD BEEN UNDER TREMENDOUS PRESSURE FROM BOTH SIDES AS IT REVIEWED THE CLINTON PLAN AND ITS REPORT REFLECTS A CAREFUL BALANCING ACT ONE TROUBLESOME ISSUE FOR THE ADMINISTRATION IS ITS CONCLUSION THAT THE ADMINISTRATION PLAN WOULD INCREASE THE FEDERAL BUDGET DEFICIT BY 74 BILLION OVER THE FIRST SIX YEARS AFTER ITS ENACTMENT THE WHITE HOUSE ESTIMATES THAT ITS PLAN WOULD SHRINK THE BUDGET GAP BY 58 BILLION DURING THAT PERIOD THE MAIN REASON FOR THE DIFFERENCE IS THAT THE CBO BELIEVES THE ADMINISTRATION SUBSTANTIALLY UNDERESTIMATED THE COST OF THE SUBSIDIES TO HELP SMALL AND LOWWAGE EMPLOYERS AFFORD REQUIRED HEALTHINSURANCE PAYMENTS BY 2000 WHEN THE WHITE HOUSE PLAN WOULD BE FULLY PHASED IN THE CBO SAYS THE SUBSIDIES WOULD COST 58 BILLION 25 BILLION MORE THAN THE ADMINISTRATION ESTIMATES THE HIGHER SUBSIDY COSTS IN TURN REFLECT THE CBO'S CONCLUSION THAT PREMIUMS TO PAY FOR A COMPREHENSIVE BENEFITS PACKAGE GUARANTEED ALL AMERICANS WOULD BE ABOUT 15 HIGHER THAN THE ADMINISTRATION ESTIMATES MOREOVER THE REPORT SUGGESTS THAT AN ADMINISTRATION PROPOSAL TO LIMIT THE GOVERNMENT'S FINANCIAL LIABILITY BY PLACING A CEILING ON OVERALL AMOUNT OF THE FEDERAL SUBSIDY PAYMENTS COULD FAIL THE CBO ANALYSIS CALCULATES THAT THE SUBSIDY PAYMENTS WOULD EXCEED THE PROPOSED CEILING AS EARLY AS 1997 AND THAT THE DISCREPANCY WOULD GROW SHARPLY AFTER THE YEAR 2000 THE CUMULATIVE OVERRUN WOULD EQUAL ABOUT 283 BILLION THROUGH 2004 MR REISCHAUER SAID UNDER QUESTIONING THE NET DEFICIT IMPACT WOULD BE LESS BECAUSE THE CBO AGREES WITH THE ADMINISTRATION THAT LARGE SAVINGS CAN BE REALIZED FROM MEDICAID STILL LAWMAKERS WILL HAVE TO RECONCILE THIS DISCREPANCY IF THE CAPS ARE TO BE MEANINGFUL IN THE FINAL LEGISLATION THE BUDGET OFFICE'S COST ESTIMATES ARE BASED ON THE ASSUMPTION THAT THE CAPS THE ADMINISTRATION WOULD PLACE ON PRIVATE HEALTHINSURANCE PREMIUMS CAN BE EFFECTIVELY IMPOSED BUT THE REPORT CALLS INTO QUESTION WHETHER SUCH STRINGENT CEILINGS WHICH WOULD HOLD THE GROWTH OF PREMIUMS AND PUBLIC SPENDING TO THE GENERAL INFLATION RATE PLUS GROWTH IN POPULATION WOULD BE POLITICALLY PALATABLE THE FULL EFFECTS OF LIMITING THE RATE OF GROWTH OF PREMIUMS WOULD BE HIGHLY UNCERTAIN THE CBO SAYS THE ISSUE OF WHETHER TO COUNT THE REQUIRED EMPLOYER AND INDIVIDUAL PAYMENTS AS GOVERNMENT RECEIPTS HAS GENERATED ENORMOUS ATTENTION THROUGHOUT WASHINGTON THE CBO REPORT SAYS THE REGIONAL HEALTH ALLIANCES WHICH WOULD COLLECT INSURANCE PAYMENTS FROM BUSINESSES AND INDIVIDUALS WOULD OPERATE PRIMARILY AS AGENTS OF THE FEDERAL GOVERNMENT CONSEQUENTLY ACCORDING TO THE CBO THEIR FINANCIAL TRANSACTIONS SHOULD BE INCLUDED IN THE FEDERAL GOVERNMENT'S ACCOUNTS AND PREMIUM PAYMENTS SHOULD BE SHOWN AS GOVERNMENTAL RECEIPTS PRESIDENT CLINTON WHO WAS TOUTING HIS PLAN IN SHREVEPORT LA BRUSHED ASIDE THAT ASPECT OF THE CBO REPORT WE'LL FIX THAT THAT'S NOT A PROBLEM HE SAID NO SERIOUS PERSON OUT HERE IN THE REAL WORLD WOULD BE TROUBLED BY THAT THE REPORT UNDERSCORES THE IMMENSITY OF THE CLINTON HEALTHCARE ENDEAVOR BY 2004 THE ALLIANCES TO BE ESTABLISHED UNDER THE PLAN WOULD COLLECT ALMOST 750 BILLION IN ANNUAL PREMIUMS FROM EMPLOYERS AND HOUSEHOLDS THE EQUIVALENT OF NEARLY THREE CURRENT PENTAGON BUDGETS EXAMINING THE POTENTIAL IMPACT OF THE PLAN ON THE ECONOMY AT LARGE THE CBO PREDICTS THAT SAVINGS BUSINESSES REALIZE IN HEALTHCARE EXPENDITURES WOULD BE LARGELY PASSED ON TO WORKERS IN THE FORM OF HIGHER WAGES BUT IT WARNS THAT THE SIZE OF THE WORK FORCE COULD BE DECREASED BY 025 TO 1 MAINLY BECAUSE GREATER NUMBERS OF PEOPLE FREED OF WORRY ABOUT BEING ABLE TO OBTAIN HEALTH COVERAGE WOULD DECIDE TO RETIRE EARLY THE REPORT SAYS THE RESULT COULD REDUCE OVERALL ECONOMIC OUTPUT BY 02 TO 07 REPUBLICANS WERE QUICK TO ARGUE THAT THE REPORT SERIOUSLY DAMAGES THE CLINTON HEALTH PLAN SAYING THAT IT BRANDS THE PRESIDENT'S PROPOSED MANDATORY HEALTH PREMIUMS AS TAX INCREASES I THINK IT IS NO LONGER A SERIOUS PLAYER SAID HOUSE MINORITY WHIP NEWT GINGRICH OF GEORGIA OF THE ADMINISTRATION'S PLAN THEY ARE IN FACT SAYING THIS IS A TAX BUT SOME DEMOCRATS SAID THEY AREN'T CONCERNED I DON'T THINK IT'S A BOTHER AT ALL SAID WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS OF THE CBO REPORT I THINK HE MR REISCHAUER DID US A FAVOR BY PUTTING THE NUMBERS ON THE TABLE I'D RATHER HAVE IT OUT THERE THAN HAVE TO SKIRT IT FOR MONTHS WHILE PEOPLE CARP WHILE MR REISCHAUER SAID COSTPROJECTION TECHNIQUES HAVE IMPROVED SINCE THE GREAT SOCIETY PROGRAMS OF THE 1960S HE WAS FRANK TO ADMIT HE MIGHT END UP A LITTLE OUTSIDE THE BALLPARK BY THE TIME 2004 ARRIVES WE'RE IN THE TOWN THE BALLPARK IS IN HE SAID 9402090123 940209 EARTH TECHNOLOGY ACQUISITION LONG BEACH CALIF EARTH TECHNOLOGY CORP AGREED TO ACQUIRE SUMMIT ENVIRONMENTAL GROUP INC IN A STOCK SWAP BOTH COMPANIES ARE ENVIRONMENTAL ENGINEERING AND CONSULTING CONCERNS SUMMIT IS CLOSELY HELD AND IS BASED IN CANTON OHIO EARTH TECHNOLOGY WHICH HAS THREE MILLION COMMON SHARES OUTSTANDING WILL ISSUE ABOUT 3262 MILLION NEW SHARES IN THE TRANSACTION THOUGH THE NUMBER OF SHARES MAY BE REDUCED TO LESS THAN 28 MILLION BASED ON EARTH TECHNOLOGY'S STOCK PERFORMANCE ON THE NASDAQ STOCK MARKET EARTH TECHNOLOGY SHARES CLOSED AT 1325 UP 375 CENTS ON A PRO FORMA BASIS THE TWO COMPANIES HAD COMBINED REVENUE OF 150 MILLION IN FISCAL 1993 EARTH TECHNOLOGY ALONE HAD REVENUE OF 629 MILLION FOR THE FISCAL YEAR ENDED LAST AUG 27 9402090122 940209 WHO'S NEWS HERO GROUP LTD HERO GROUP LTD NEW YORK HAROLD BLATTER 62 YEARS OLD WAS NAMED VICE PRESIDENT INTERNATIONAL SOURCING AND PRODUCTION A NEW POSITION AT THIS WOMEN'S APPAREL MANUFACTURER MR BLATTER HAS BEEN AN INDEPENDENT CONSULTANT TO THE APPAREL INDUSTRY SINCE EARLY 1993 AND BEFORE THAT VICE PRESIDENT OVERSEAS OPERATIONS AT THE WARREN GROUP 9402090121 940209 ENTERPRISE INFORMATION SUPERHIGHWAY WILL AID OUTPUT SMALLBUSINESS EXECUTIVES SAY BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALLBUSINESS EXECUTIVES FAMILIAR WITH THE EMERGING INFORMATION SUPERHIGHWAY THINK IT WILL MAKE THEM MORE PRODUCTIVE AND RICHER A SURVEY SHOWS BUT 52 OF THE EXECUTIVES WEREN'T FAMILIAR WITH THE CONCEPT AT ALL THE INTERNATIONAL BUSINESS MACHINES CORP SURVEY FOUND THE STUDY IS ONE OF THE MOST COMPREHENSIVE TO DATE OF SMALL BUSINESS'S ATTITUDE TOWARD THE IDEA OF A COMMUNICATIONS NETWORK THAT ELECTRONICALLY DELIVERS A WIDE VARIETY OF SERVICES THE SURVEY WAS CONDUCTED IN JANUARY AND CANVASSED 514 EXECUTIVES OF SMALL BUSINESSES WITH ANNUAL REVENUE OF 5 MILLION TO 99 MILLION OF EXECUTIVES FAMILIAR WITH THE SUPERHIGHWAY CONCEPT 74 SAW IT AS A POTENTIAL ASSET THE SURVEY REPORTED THAT THE MOST COMMON USES SMALL COMPANIES SAID THEY WOULD FIND FOR THE SUPERHIGHWAY WOULD BE THE ABILITY TO TAKE OR PLACE BUSINESS ORDERS CONDUCT VIDEOCONFERENCING CHECK THE MARKET PRICES OR AVAILABILITY OF RAW MATERIALS AND ANALYZE CASH FLOWS OTHER FAVORED POTENTIAL USES INCLUDED CREATING AND SENDING MANUFACTURING AND DESIGN SPECIFICATIONS TO STAFF VENDORS AND CUSTOMERS GAINING ACCESS TO IMMEDIATE INVENTORY MANAGEMENT MAKING COMPETITIVE BIDS CONDUCTING BANKING AND STOCK MARKET TRANSACTIONS PAYING TAXES AND GAINING ACCESS TO IMAGE TECHNOLOGY ONE OF THE KEY THINGS THAT DIFFERENTIATES THE SMALL BUSINESS FROM THE LARGE BUSINESS IS ACCESSIBILITY TO NEW CUSTOMERS SAYS COREY SMITH PRESIDENT OF CREATIVE MULTIMEDIA CORP A SMALL PORTLAND ORE MAKER OF CDROM SOFTWARE THE INFORMATION SUPERHIGHWAY ALLOWS US TO HAVE ACCESS TO THE KIND OF CONSUMER BASE LARGE COMPANIES CAN GET TO SOME 70 OF EXECUTIVES FAMILIAR WITH THE INFORMATION SUPERHIGHWAY PREDICTED THAT IT WOULD INCREASE THEIR PROFITS ABOUT 55 SAID THAT THE SUPERHIGHWAY WOULD DRAMATICALLY CUT COSTS ASSOCIATED WITH DOING BUSINESS THESE RESPONDENTS ALSO SAID THE SUPERHIGHWAY WOULD ALLOW THEM TO EXPAND THEIR MARKETS ALMOST TWOTHIRDS OF THEM SAID IT WOULD ENHANCE THEIR ABILITY TO EXPAND GLOBALLY AND 62 SAID IT WOULD PERMIT THEM TO MAKE COMPETITIVE BIDS TO WHICH THEY NORMALLY DON'T HAVE ACCESS DESPITE THIS ENTHUSIASM MOST RESPONDENTS FAMILIAR WITH THE SUPERHIGHWAY SAID THAT IT WOULD TAKE AT LEAST THREE TO 10 YEARS FOR IT TO BECOME A REALITY FOR MOST SMALL BUSINESSES SOME 90 OF THOSE SURVEYED SAID THEY ARE TAKING A WAITANDSEE APPROACH ABOUT TAKING THEIR OWN BUSINESS ONTO THE SUPERHIGHWAY ONLY 6 SAY THEY ARE TAKING IMMEDIATE STEPS TO MAKE IT EASIER FOR THEM TO BECOME HOOKED INTO A POTENTIAL SUPERHIGHWAY THIS HESITATION ABOUT THE HIGHWAY MAY SIMPLY COME FROM SMALL BUSSINESS' LACK OF FAMILIARITY WITH IT I DON'T THINK I KNOW ENOUGH TO COMMENT ABOUT THE INFORMATION SUPERHIGHWAY SAID RALPH MURRAY CHIEF EXECUTIVE OF IDL INC A PITTSBURGH MAKER OF STORE DISPLAYS MY OWN IDEA OF IT IS VERY VAGUE 9402090120 940209 WHO'S NEWS WESTINGHOUSE NAMES PEPSICO'S REYNOLDS CHIEF FINANCIAL OFFICER PITTSBURGH WESTINGHOUSE ELECTRIC CORP IN ANOTHER BREAK FROM THE PAST NAMED FREDRIC G REYNOLDS A PEPSICO INC EXECUTIVE CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT MR REYNOLDS'S APPOINTMENT FOLLOWS BY SEVEN MONTHS THE NAMING OF ANOTHER OUTSIDER MICHAEL H JORDAN TO BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR JORDAN AND MR REYNOLDS WORKED TOGETHER AT PEPSICO WHERE THE 43YEAROLD MR REYNOLDS MOST RECENTLY WAS CHIEF FINANCIAL OFFICER OF PEPSICO FOODS INTERNATIONAL HE SUCCEEDS WARREN H HOLLINSHEAD WHOSE TIES TO FORMER CHAIRMAN PAUL E LEGO WERE CONSIDERED BY ANALYSTS TO BE TOO STRONG MR LEGO'S MANAGEMENT TEAM LACKED CREDIBILITY ON WALL STREET MR HOLLINSHEAD 58 IS RETIRING IN A STATEMENT MR JORDAN WHO IS ATTEMPTING TO REVIVE WESTINGHOUSE'S SLUGGISH OPERATIONS AND REVAMP ITS FINANCES SAID MR REYNOLDS BRINGS STRONG OPERATIONAL EXPERIENCE AND A STRATEGIC FINANCIAL BACKGROUND THAT WE NEED TO HELP US ACHIEVE FINANCIAL CREDIBILITY AND A STRONG PERFORMANCE CULTURE AT WESTINGHOUSE HE ALSO NOTED THAT MR REYNOLDS HAS A STRONG INTERNATIONAL BACKGROUND MUCH OF MR JORDAN'S BUSINESS EXPERIENCE LIES IN THE INTERNATIONAL ARENA WHICH IS ONE OF HIS CHIEF FOCUSES FOR WESTINGHOUSE MAUREEN P LENTZ AN ANALYST WITH ROULSTON & CO IN CLEVELAND CALLED WESTINGHOUSE'S DECISION TO REACH OUTSIDE THE COMPANY FOR A CHIEF FINANCIAL OFFICER A GOOD MOVE BECAUSE IT REPRESENTS A BREAK WITH THE PAST ONE OF THE FIRST CHALLENGES MR REYNOLDS WILL FACE IS HELPING THE COMPANY SELL 500 MILLION IN PREFERRED STOCK CONSIDERED BY MR JORDAN TO BE CRUCIAL FOR THE COMPANY'S GROWTH MR REYNOLDS ALSO WILL FACE A HUGE TASK IN AIDING MR JORDAN'S PLAN TO SQUEEZE EARNINGS GROWTH FROM WHAT ARE CONSIDERED BY MANY TO BE SLOWGROWTH BUSINESSES MIRED IN AN INBRED CULTURE WESTINGHOUSE'S CORE BUSINESSES INCLUDE POWER GENERATION BROADCASTING ELECTRONIC SYSTEMS AND THERMO KING A TRANSPORTATIONREFRIGERATION COMPANY 9402090119 940209 WHO'S NEWS HAMBURGER HAMLET RESTAURANTS INC HAMBURGER HAMLET RESTAURANTS INC SHERMAN OAKS CALIF PRESIDENT PAUL M BROCKMAN LEFT THE COMPANY WHICH SAID IT EXPECTS TO POST A NET LOSS IN THE FOURTH QUARTER BECAUSE OF LOWERTHANEXPECTED SALES HAMBURGER HAMLET'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS A MCFALL WHO ASSUMES THE ADDITIONAL TITLE OF PRESIDENT SAID MR BROCKMAN HAS LEFT TO PURSUE OTHER BUSINESS OPPORTUNITIES MR BROCKMAN COULDN'T BE REACHED FOR COMMENT DAVID R FOX EXECUTIVE VICE PRESIDENT WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER 9402090118 940209 WAR OF WORDS USJAPAN DIFFERENCES ON TRADE ARE REFLECTED IN THE TWO NEGOTIATORS A TOUGH AMERICAN LAWYER AND OLDLINE BUREAUCRAT EMBODY NATIONAL STYLES BOTH SIDES SEEK A WIZARD' BY BOB DAVIS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL CHARLENE BARSHEFSKY'S COLLEAGUES CALL HER STONEWALL A TRIBUTE TO THE US OFFICIAL'S TENACITY IN TRADE NEGOTIATIONS SO WHEN SOZABURO OKAMATSU A JAPANESE BUREAUCRAT MET HER FOR TALKS LAST YEAR HE WANTED TO SHOW HE WAS TOUGH TOO IF YOU'RE MRS STONEWALL I'M MR STONEWALL HE TOLD MS BARSHEFSKY WHO QUICKLY TOLD HER COLLEAGUES TO CUT OUT THE NICKNAMES THE LAST THING WE WANT IS FOR JAPAN TO THINK IT'S ALL RIGHT TO STONEWALL BUT AS THE TWO GOVERNMENTS RACE THE CLOCK TO TRY TO REACH A NEW TRADE AGREEMENT BY FRIDAY THAT IS PRECISELY WHAT EACH SIDE IS RUNNING INTO A STONE WALL JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON WILL TRY TO SIGN OFF ON A SIGNIFICANT TRADE DEAL BASED LARGELY ON THE TWO NEGOTIATORS' WORK AND IN THE RUNUP TO THE SUMMIT IN WASHINGTON THE TWO SIDES STILL FACE GAPING AREAS OF DISAGREEMENT CHIEFLY OVER THE US INSISTENCE THAT JAPAN COMMIT TO NUMERICAL GOALS FOR RAISING IMPORTS THE CLINTON ADMINISTRATION WHICH LAST SUMMER TRUMPETED AN EMERGING BREAKTHROUGH WITH JAPAN STILL FINDS THAT IT MUST REDEFINE THE VERY FOUNDATIONS OF THE USJAPAN TRADE RELATIONSHIP AMERICAN OFFICIALS SAY PAST DEALS HAVE DONE LITTLE TO PRY OPEN JAPAN'S CLOSED MARKETS AND DESPITE EARLY HOPES THIS ONE DOESN'T LOOK MUCH MORE PROMISING THE PROBLEM WASHINGTON COMPLAINS IS INTRANSIGENT CAREER MANDARINS WHO TRY TO TALK AMERICANS TO DEATH SUCH AS MR OKAMATSU THE JAPANESE CONTEND THE CLINTONITES ARE WRONGLY EVEN DANGEROUSLY TRYING TO DICTATE THE TERMS OF TRADE THE PROBLEM TOKYO COMPLAINS IS THAT US POLICY IS SHAPED BY LAWYERS WITH LITTLE UNDERSTANDING OF JAPAN SUCH AS MS BARSHEFSKY THE JAPANESE LOOK AT POLICIES IN THEIR HISTORICAL PERSPECTIVE SAYS NOBORU HATAKEYAMA A RECENTLY RETIRED NEGOTIATOR AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HOWEVER IN THE CASE OF THE US ALMOST ALL OF THEIR NEGOTIATORS SEEM LIKE THEY CAME IN JUST YESTERDAY BUREAUCRATIC FLIMFLAM REPLIES BOWMAN CUTTER DEPUTY DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL US POLITICAL APPOINTEES CAN MOVE FAST HE SAYS WHILE THE PACE OF CHANGE IS OCCURRING MUCH MORE RAPIDLY THAN THE SENIOR CIVIL SERVANTS IN THE JAPANESE MINISTRIES ARE ABLE TO ADJUST TO THE STAKES ARE HUGE SUCCESS WOULD EASE LONGSTANDING TENSIONS CREATE BILLIONS OF DOLLARS IN BUSINESS FOR AMERICANS AND ACCELERATE A MUCHNEEDED RESTRUCTURING OF JAPAN'S ECONOMY A PROLONGED TRADE BATTLE BETWEEN THE WORLD'S TWO LARGEST ECONOMIES COULD RAISE THE PRICE OF IMPORTS AND HOBBLE JOINT VENTURES BETWEEN US AND JAPANESE COMPANIES ULTIMATELY A FIGHT COULD EVEN UNDERMINE THE USJAPANESE POLITICAL ALLIANCE WHILE NORTH KOREA LOOMS AS A MILITARY THREAT AND RUSSIA'S OWN CHAOS IS MENACING AS WELL MS BARSHEFSKY AND MR OKAMATSU EMBODY THE STRENGTHS AND WEAKNESSES OF THEIR COUNTRIES AND ILLUSTRATE HOW THE TWO SIDES ARE TRYING TO REACH AN AGREEMENT AND WHY THEY ARE FLOUNDERING EACH MAKES DEMANDS THAT FEED INTO THE OTHER'S FEARS LEAVING EACH SEARCHING FOR MORE SENIOR OFFICIALS FIXERS WHO WILL OVERRIDE THE NEGOTIATORS IN THE END THE TWO HEADS OF STATE JUST MIGHT BREAK THE IMPASSE THE NEGOTIATORS COULDN'T DIFFER MORE HE IS A 56YEAROLD JAPANESE WHO GREW UP DURING THE AMERICAN OCCUPATION AND RECALLS EATING POWDERED EGGS DISTRIBUTED BY GIS SHE'S A 43YEAROLD AMERICAN BABY BOOMER WHO QUOTES JOHN LENNON TO EXPLAIN HER NEGOTIATING STYLE HE IS A MEMBER OF JAPAN'S GOVERNMENT ELITE A TOKYO UNIVERSITY GRADUATE THE SON OF A MITI VICE MINISTER WHO HAS SPENT 34 YEARS CLIMBING THE RANKS AT MITI UNTIL HE BECAME VICE MINISTER FOR INTERNATIONAL AFFAIRS SHE IS THE DAUGHTER OF IMMIGRANTS WHO MADE HER MARK AS A HIGHPRICED TRADE LAWYER WITH BLUECHIP CLIENTS AND JOINED THE GOVERNMENT ONLY LAST YEAR HE SPEAKS SO SOFTLY THAT HE HAD TO UTTER THE THREAT OF RETALIATION TWICE BEFORE ANY REPORTERS AT A NEWS CONFERENCE NOTICED SHE IS AS BLUNT AS AN EXCLAMATION POINT AT MS BARSHEFSKY'S CONFIRMATION HEARING AS DEPUTY US TRADE REPRESENTATIVE WHEN MOST NOMINEES ARE DEFERENTIAL TO THE POINT OF OBSEQUIOUSNESS SHE TOOK ON SEN DONALD RIEGLE HE QUESTIONED WHETHER SHE WAS AN ECONOMIC PATRIOT AFTER THE WALL STREET JOURNAL REPORTED ABOUT HER WORK FOR FOREIGN CLIENTS I DO NOT COME TO THIS JOB TO BUILD A REPUTATION SHE LECTURED THE MICHIGAN DEMOCRAT WHOSE OWN REPUTATION WAS MARRED BY HIS S&L LOBBYING I AM HERE BECAUSE I HAVE A REPUTATION SHE QUICKLY EARNED A NAME IN JAPAN AS A BRAWLER ARGUING TOETOTOE IN TOKYO LAST JUNE WITH MR HATAKEYAMA A MITI MAN WIDELY REVILED BY AMERICANS AS OVERBEARING MR CUTTER WHOSE GREATGREATGRANDFATHER FOUGHT IN STONEWALL JACKSON'S BRIGADE WAS SO IMPRESSED THAT HE NICKNAMED HER AFTER THE RESOLUTE SOUTHERN GENERAL THEN A MONTH LATER SHE CLASHED WITH MR OKAMATSU WHEN THE TWO COUNTRIES WERE SETTING THE BROAD OUTLINE FOR THE FRAMEWORK ACCORD NEGOTIATORS HAD AGREED THAT JAPAN WOULD USE QUANTITATIVE INDICATORS TO MEASURE THE OPENNESS OF ITS MARKET A CRITICAL GOAL FROM WASHINGTON'S STANDPOINT BUT MS BARSHEFSKY HAD TO QUASH A 1 AM EFFORT BY MR OKAMATSU TO EASE THE TERMS ESPECIALLY AS THEY RELATED TO QUANTITATIVE MEASURES MS BARSHEFSKY HONED HER NEGOTIATING STYLE AT THE WASHINGTON LAW FIRM STEPTOE & JOHNSON WHERE SHE WAS COHEAD OF THE INTERNATIONAL LAW PRACTICE SHE ADVISED BOEING CO ON HOW TO ATTACK SUBSIDIES TO ITS EUROPEAN RIVAL OCCIDENTAL PETROLEUM CORP ON HOW TO FEND OFF COMPLAINTS ABOUT ITS IMPORTS FROM RUSSIA AND A MEXICAN BUSINESS LOBBY ON HOW TO ASSESS PROPOSALS DURING TRADE TALKS WITH THE US BUT HER JAPAN EXPERIENCE WAS PALTRY AND IN THAT RESPECT SHE SHARES AN ALLTOOCOMMON FAILING IN AMERICAN GOVERNMENT LACK OF INSTITUTIONAL MEMORY AND KNOWLEDGE OF OPPONENTS BEFORE TAKING THE TRADE NEGOTIATOR'S POST SHE HAD NEVER VISITED JAPAN AND HAD LITTLE RECENT BUSINESS EXPERIENCE WITH THE COUNTRY CHALMERS JOHNSON A JAPAN EXPERT AT THE UNIVERSITY OF CALIFORNIA CONTENDS THAT EVEN AFTER THE PAST EIGHT MONTHS OF NEGOTIATIONS MS BARSHEFSKY IS A LAMB GOING TO SLAUGHTER BUT SHE'S A QUICK STUDY SHE CAME INTO THE ADMINISTRATION NOT KNOWING MUCH ABOUT CHINA EITHER BUT SHE DEVISED THE ADMINISTRATION'S GETTOUGH STRATEGY OVER CHINESE TEXTILE SMUGGLING AND CHINA AGREED TO CONCESSIONS UNDER THREAT OF SANCTIONS MR OKAMATSU BY CONTRAST KNOWS THE US WELL LIKE MOST JAPANESE TRADE NEGOTIATORS ONE OF HIS FIRST TASKS UPON JOINING MITI IN 1960 WAS TO TRY TO EASE TRADE FRICTIONS BY OVERSEEING RESTRICTIONS ON JAPANESE EXPORTS OF LOWPRICED SILVERWARE HE LIVED IN NEW YORK FOR THREE YEARS IN THE MID1970S AND HAS WARM MEMORIES OF THE WAY HE AND HIS FAMILY WERE RECEIVED HE HAS SPENT MUCH OF HIS TIME SINCE THEN HANDLING BILATERAL TRADE DISPUTES IN AREAS SUCH AS SEMICONDUCTORS AND AUTO PARTS BUT MR OKAMATSU IS UNDER FIRE TOO FOR THE OPPOSITE REASON THAT MS BARSHEFSKY IS EVEN SOME OF HIS FANS SAY HE HAS THE COMMON FLAWS OF A BUREAUCRAT AN OVERLY CONSERVATIVE APPROACH TO PROBLEMS AND DOGGED LOYALTY TO HIS MINISTRY ABOVE ALL ELSE DURING THE EARLY 1980S HE HELPED LEAD MITI'S BITTER WAR WITH THE TELECOMMUNICATIONS MINISTRY OVER CONTROL OF INFORMATION INDUSTRIES MR OKAMATSU SAYS HE WAS DRAWN TO MITI BECAUSE I COULD MAKE LOTS OF IMPORTANT DECISIONS AND DO IMPORTANT JOBS FROM MY YOUNGER DAYS THAT KIND OF ATTITUDE AMONG THE NATION'S POWERFUL MANDARINS HAS SPAWNED THE COUNTRY'S WOES MANY JAPANESE BELIEVE BUREAUCRATS ARE LIKE CAVITIES MASAO OGURA THE CHAIRMAN OF A MAJOR TRANSPORTATION COMPANY WROTE IN A RECENT NEWSPAPER ESSAY THE BEST SERVICE TO THE PEOPLE IS TO PULL THEM OUT COMPLETELY AFTER THEIR TUSSLE IN TOKYO MR OKAMATSU AND MS BARSHEFSKY MADE UP DURING A NEGOTIATING SESSION IN HAWAII IN SEPTEMBER HE SENT FLOWERS TO HER ROOM SHE GAVE HIM A PEWTER PAPERWEIGHT WITH AN ENGRAVED EAGLE HE BROUGHT WHAT ELSE A CAMERA AIDES SNAPPED PHOTOS OF THE PAIR ON A BALCONY OVERLOOKING THE PACIFIC EVER AFTER THE US NEGOTIATING TEAM CALLED THE PHOTOS THE HONEYMOON SHOTS BUT THE HONEYMOON DIDN'T LAST LONG THE NEXT MONTH THE BARSHEFSKY TEAM HANDED THE JAPANESE A US PROPOSAL CALLING FOR JAPAN TO INCREASE ITS MANUFACTURING IMPORTS TO THE LEVEL OF THE BIGGEST WESTERN ECONOMIES A FEAT THAT WOULD REQUIRE AT LEAST A DOUBLING OF IMPORTS SHE INTENTIONALLY LEFT BLANKS IN THE APPENDIX SHE SAYS SO THE TWO SIDES COULD COME UP WITH WAYS TO MEASURE JAPAN'S PROGRESS BUT IT WASN'T SO EASY INSTEAD OF FILLING IN THE BLANKS THE TWO SIDES GOT INTO A NASTY FOURMONTH WAR OF WORDS OVER THE USE OF QUANTITATIVE MEASURES THE VERY COMMITMENT THE US THOUGHT IT HAD SECURED IN JULY WHAT THE JULY ACCORD ACTUALLY CALLED FOR WAS OBJECTIVE CRITERIA TO MEASURE JAPAN'S PROGRESS IN OPENING MARKETS THE TWO SIDES AGREED TO REACH THE FIRST BATCH OF AGREEMENTS THIS FRIDAY COVERING AUTOS AND AUTO PARTS INSURANCE AND GOVERNMENT PROCUREMENT OF MEDICAL AND TELECOMMUNICATIONS EQUIPMENT TO THE US OBJECTIVE CRITERIA MEANT SPECIFIC IMPORT GOALS TO JAPAN ANY NUMERICAL MEASURES SHOULD BE USED ONLY AS A MEANS OF STUDYING PAST PERFORMANCE MR OKAMATSU ARGUES THAT RATHER THAN SET SPECIFIC TARGETS IN A TRADE AGREEMENT THE TWO SIDES CAN TALK MORE ABOUT WHAT IS CAUSING THE PROBLEMS WE CALL THIS THE COOPERATIVE APPROACH HE SAYS NONSENSE MS BARSHEFSKY SNAPS THAT WOULD ANALYZE THE PAST TO DEATH WITH NO LINK TO FUTURE CHANGE THEIR PHILOSOPHICAL BREACH REFLECTS MORE THAN 10 YEARS OF TRADE TENSIONS AND MOUNTING FEELINGS OF BETRAYAL BY BOTH SIDES TO THE AMERICANS THE US IS TRYING TO BREAK THE PATTERN IN WHICH JAPAN WOULD REMOVE ONE TRADE BARRIER AND A NEW ONE WOULD POP UP THAT'S WHY THE US IS TURNING TO IMPORT GOALS AND MEASUREMENTS TO THE JAPANESE THE US IS REJECTING FREEMARKET PRINCIPLES AND SEEKING TO MANAGE TRADE BETWEEN THE COUNTRIES TWICE BEFORE MR OKAMATSU HAGGLED OVER NUMBERS WITH THE US FIRST OVER SETTING A MARKETSHARE TARGET FOR FOREIGN SEMICONDUCTORS AND LATER A DOLLARVOLUME TARGET FOR US AUTO PARTS IN BOTH CASES THE US HAS REGULARLY THREATENED JAPAN WITH NEW TRADE SANCTIONS IF IT DOESN'T HIT THE NUMBERS WHICH MR OKAMATSU SAID HE NEGOTIATED AS VOLUNTARY GOALS LESSON NO 1 AND LESSON NO 2 TAUGHT ME YOU SHOULDN'T USE NUMBERS HE SAYS RUEFULLY THE PLEAS OF MR OKAMATSU AND OTHERS WON ADHERENTS IN ASIA WHERE SMALL COUNTRIES WORRIED THAT THE US WOULD HIT THEM NEXT WITH DEMANDS AND IN EUROPE WHERE BIG NATIONS WORRIED THAT THE US WOULD GET A LEG UP IN JAPAN THE JAPANESE CAMPAIGN AGAINST MANAGED TRADE SEEMED AUDACIOUS TO US OFFICIALS MITI HAS BEEN PERHAPS THE WORLD'S MOST SUCCESSFUL MANIPULATOR OF MARKETS MR OKAMATSU HAS BEEN INVOLVED IN EVERYTHING FROM PROMOTING THE DOMESTIC AIRCRAFT INDUSTRY TO LAUNCHING THE FAMOUS FIFTH GENERATION ADVANCEDCOMPUTING PROJECT WE HAVE PROMOTED SOME INDUSTRIES HE CONCEDES BUT THAT WAS DONE IN OPENMARKET SITUATIONS STILL THE TWO NEGOTIATORS WORKED ON THEIR PERSONAL RELATIONSHIP HOPING THAT AN AMIABLE BOND WOULD HELP THEM REACH A COMPROMISE WHEN NOT IN A BUSINESS MODE BOTH ARE WARM AND FUNNY DURING LONG NEGOTIATING SESSIONS MS BARSHEFSKY TALKED ABOUT HER TWO YOUNG DAUGHTERS' AFFECTION FOR ORIGAMI AND DREW OUT MR OKAMATSU ABOUT HIS FAMILY A TOPIC HE IS SO SHY ABOUT THAT SOME OF HIS COLLEAGUES LEARNED HE HAD A DAUGHTER ONLY WHEN SHE WAS SEEN FROM THE OFFICE WINDOW BUT HE ENDEARED HIMSELF TO THE BARSHEFSKY FAMILY BY SENDING THEM A JAPANESE DOLL WEARING A KIMONO SINCE YOUR DAUGHTERS MUST HAVE MISSED YOU IN TOKYO HE TOLD HER THIS IS SOMETHING TO CHEER THEM UP IN EARLY DECEMBER THE US LAUNCHED ITS OWN OFFENSIVE IN TALKS WITH MR OKAMATSU CABINET SECRETARIES AND POLITICAL POWER BROKERS THE AMERICANS TRIED TO EXPLAIN THAT THEY WEREN'T SEEKING MARKET SETASIDES AS WITH SEMICONDUCTORS RATHER THEY WANTED JAPAN TO OPEN ITS MARKET BROADLY IN A VERIFIABLE WAY BUT THE PRESS INTERPRETED THAT TO MEAN THAT THE US WAS BACKING OFF ON ITS DEMANDS AND THE US FOUND ITSELF ATTACKED AS BOTH PROTECTIONIST AND WEAK SHORTLY BEFORE CHRISTMAS THE US INTENSIFIED ITS ATTACK EXPLICITLY CASTING MR OKAMATSU AND HIS COLLEAGUES AS THE VILLAINS IN THE DRAMA THE GOAL WAS TO DRAW THEIR POLITICAL BOSSES INTO THE FIGHT TRADE REPRESENTATIVE MICKEY KANTOR WROTE A LETTER TO THE NIHON KEIZAI SHIMBUN A BUSINESS NEWSPAPER ACCUSING JAPAN'S BUREAUCRATS OF RESISTING TRADE LIBERALIZATION BECAUSE THEY FEAR A LOSS OF POWER MS BARSHEFSKY AND MR OKAMATSU REMAINED TRAPPED IN RITUALISTIC NEGOTIATIONS WHICH EXASPERATED THE HARDCHARGING LAWYER TWO WEEKS AGO IN WASHINGTON MR OKAMATSU HANDED MS BARSHEFSKY DOCUMENTS CONTENDING THE US HAD SCORED BIG GAINS IN CERTAIN IMPORTS WHICH THE US DEEMED INFLATED I TOLD HIM WE'RE NOT MAKING PROGRESS WE'RE GOING TO LEAVE' SHE RECALLS HE THREW UP HIS HANDS AND SAID I CAN'T DO ANY MORE LATER MR OKAMATSU SAID THAT IS HER NEGOTIATING TACTIC BUT IN THE END BOTH SIDES DECIDED TO REEXAMINE THE NUMBERS RATHER THAN BREAK OFF THE TALKS NOW OUT OF FRUSTRATION BOTH SIDES HOPE TO GO OVER THE NEGOTIATORS' HEADS IN WHAT MIGHT BE CALLED A WIZARD OF OZ STRATEGY IF THEY COULD ONLY GET BEYOND THE DEADLOCKED NEGOTIATORS BOTH SIDES THINK THEY MAY FIND SOMEONE HIDDEN FROM VIEW A WIZARD OR A FIXER WILLING TO CUT A DEAL A JAPANESE DELEGATION RECENTLY ASKED ROBERT RUBIN DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL TO COME TO JAPAN FIGURING THAT THE FORMER GOLDMAN SACHS & CO COCHAIRMAN WOULD BE MORE SYMPATHETIC HE DECLINED AND MR KANTOR THE BLUNT US TRADE REPRESENTATIVE SHOWED UP THE US SEARCH FOR A WIZARD IS GOING JUST AS POORLY LAST WEEK MESSRS KANTOR AND CUTTER MADE THE ROUNDS IN TOKYO OF THE TOP POLITICIANS IN THE GOVERNMENT COALITION AND EVEN THE OPPOSITION LOOKING FOR SOMEBODY TO PLEAD THEIR CASE BUT WITH THE CABINET LURCHING FROM ONE POLITICAL CRISIS TO ANOTHER IT'S NOT CLEAR WHO CAN HELP MEETING MR KANTOR THURSDAY AFTERNOON MR HOSOKAWA FELT HE WAS FINALLY READY TO FOCUS ON THE FRAMEWORK HAVING COMPLETED HIS ECONOMIC PACKAGE BUT BY THURSDAY NIGHT THE PACKAGE HAD UNRAVELED IN A DISPUTE OVER TAXES MR HOSOKAWA WASN'T ABLE TO COME UP WITH A NEW PLAN UNTIL YESTERDAY BACK IN WASHINGTON STONEWALL BARSHEFSKY PREPARES FOR YETANOTHER VISIT FROM MR OKAMATSU WHO ARRIVED SUNDAY THIS TIME SHE SAYS SHE WILL TELL HIM ABOUT THE TIME HER TV SET CONKED OUT JUST BEFORE SHE WAS DUE TO LEAVE FOR TOKYO COULD YOU BUY US ANOTHER ONE IN JAPAN HER 10YEAROLD ASKED FIGURING THAT IS WHERE ALL TV SETS COME FROM TOO EXPENSIVE HER MOTHER REPLIED EXPLAINING HOW A CLOSED JAPANESE MARKET BOOSTS PRICES HIGHER THAN THEY ARE IN WASHINGTON MR OKAMATSU IS READY WITH A RESPONSE JAPANESE ELECTRONICS COMPANIES LOOKING TO CUT THE TRADE IMBALANCE AND RAISE US EMPLOYMENT ACTUALLY MAKE LOTS OF TVS IN AMERICA OVERALL MS BARSHEFSKY'S STRATEGY IS TO HANG TOUGH BUT OFFER THE JAPANESE A FACESAVING WAY OUT MR OKAMATSU GENTLY SUGGESTS HE WILL MAKE SURE THINGS WORK OUT OUR BACKGROUNDS ARE DIFFERENT HE SAYS BUT FORTUNATELY I HAVE HAD AN EXPERIENCE TO LIVE IN THE US SO I THINK I KNOW HOW THE AMERICAN PEOPLE THINK SAYS STONEWALL BARSHEFSKY THE JAPANESE WILL TAKE UNTIL THE LAST NANOSECOND BEFORE CUTTING A DEAL 9402090117 940209 RULE OF LAW NEW INDEPENDENT COUNSEL LAW SHOULD APPLY TO FIRST LADY BY THEODORE J BOUTROUS JR TODAY CONGRESS WILL RESUME DEBATE OVER THE LAPSED INDEPENDENT COUNSEL LAW AND THE ARGUMENTS NO DOUBT WILL BE COLORED BY PRESIDENT AND MRS CLINTON'S CONTROVERSIAL FINANCIAL DEALINGS IN WHITEWATER DEVELOPMENT CORP I AM AGAINST REAUTHORIZATION OF THE STATUTE IN ANY FORM BUT SINCE IT SOON MAY BE REAUTHORIZED CONGRESS MIGHT AS WELL ENSURE THAT THE STATUTE FULFILLS ITS ASSERTED PURPOSES AND APPLIES IN A FAIR AND CONSISTENT MANNER CONGRESS THUS OUGHT TO RESOLVE A QUESTION OF INCREASINGLY PRESSING IMPORTANCE SHOULD A PRESIDENT'S SPOUSE BE COVERED BY THE INDEPENDENT COUNSEL STATUTE IN LIGHT OF WHITEWATER AND HILLARY RODHAM CLINTON'S DEEP INVOLVEMENT IN THE POLITICS AND POLICY OF HER HUSBAND'S PRESIDENCY THE ANSWER TO THAT QUESTION IS CLEARLY YES EVERYONE NOW SEEMS TO AGREE THAT SPECIAL PROCEDURES ARE NECESSARY IN CASES INVOLVING POSSIBLE CLAIMS OF HIGHLEVEL EXECUTIVEBRANCH WRONGDOING WHITEWATER IS SUCH A CASE REPUBLICANS LED BY SENATE MINORITY LEADER BOB DOLE AND JOINED BY NUMEROUS SENATE DEMOCRATS PERSUADED THE WHITE HOUSE TO REQUEST THAT ATTORNEY GENERAL JANET RENO APPOINT AN OUTSIDE SPECIAL COUNSEL WHO WILL BE INSULATED BY JUSTICE DEPARTMENT REGULATIONS FROM POLITICAL PRESSURES TO INVESTIGATE THE WHITEWATER AFFAIR EVEN AS SHE ANNOUNCED THE APPOINTMENT OF ROBERT FISKE HOWEVER MS RENO REITERATED HER POSITION THAT ONLY A TRULY INDEPENDENT COUNSEL APPOINTED BY THE COURTS PURSUANT TO THE STATUTE WOULD INSTILL PUBLIC CONFIDENCE IN THE WHITEWATER INVESTIGATION BUT THIS PREFERENCE POSES A PROBLEM THAT GOES BEYOND WHITEWATER THE INDEPENDENT COUNSEL STATUTE HAS NEVER EXPLICITLY COVERED THE PRESIDENT'S SPOUSE AND NEITHER THE HOUSE NOR THE SENATE PROPOSALS PENDING IN CONGRESS WOULD DO SO EITHER THE STATUTORY MANDATE FOR AN INDEPENDENT COUNSEL HAS ALWAYS APPLIED ONLY TO CERTAIN SPECIFICALLY IDENTIFIED HIGHRANKING EXECUTIVEBRANCH OFFICIALS INCLUDING THE PRESIDENT NEITHER THE FIRST LADY NOR ANY OTHER EXECUTIVEBRANCH SPOUSE HAS EVER BEEN INCLUDED WHITEWATER SHOWS WHY THIS MAKES NO SENSE AS VIRTUALLY EVERYONE MUST KNOW BY NOW THE WHITEWATER CONTROVERSY FAIRLY OR UNFAIRLY FOCUSES AS MUCH ON MRS CLINTON AS ON THE PRESIDENT ACCORDING TO TIME MAGAZINE COMPARED WITH THE PRESIDENT THE FIRST LADY WAS A CENTRAL PLAYER BOTH WERE INVESTORS IN THE FAILED LAND DEAL MRS CLINTON'S CONDUCT ALSO ALLEGEDLY INCLUDED HER SECURING OF A 30000 LOAN TO PURCHASE A MODEL HOME FOR THE DEVELOPMENT PROPERTY AND THE SUBSEQUENT SALE OF THE HOME HER LEGAL REPRESENTATION OF MADISON GUARANTY S&L THE INVOLVEMENT OF HER LAW PARTNERS IN VARIOUS OTHER WHITEWATER EVENTS AND HER 1988 LETTER ASKING FOR POWER OF ATTORNEY FOR THE COMPANY THE POSITION OF FIRST LADY NO LONGER CAN BE CHARACTERIZED AS SIMPLY CEREMONIAL PARTICULARLY SINCE THE OFFICE'S POLICYMAKING FUNCTION HAS NOW BEEN MADE EXPLICIT IN ITS RECENT DECISION CONCERNING THE LEGAL STATUS OF MRS CLINTON AND THE HEALTH CARE TASK FORCE OVER WHICH SHE PRESIDED THE FEDERAL APPEALS COURT IN WASHINGTON HAD LITTLE TROUBLE CONCLUDING THAT THE PRESIDENT'S SPOUSE ACTS AS THE FUNCTIONAL EQUIVALENT OF AN ASSISTANT TO THE PRESIDENT AND THAT THE FIRST LADY IS A FULLTIME OFFICER OR EMPLOYEE OF THE GOVERNMENT MRS CLINTON HAS BEEN REPEATEDLY CHARACTERIZED AS THE PRESIDENT'S CLOSEST ADVISER SHE WAS CHARGED BY THE PRESIDENT WITH THE RESPONSIBILITY OF FORMULATING AND IMPLEMENTING THE MOST FARREACHING POLICY INITIATIVE OF HIS ADMINISTRATION HEALTH CARE REFORM AND SHE RECENTLY TESTIFIED BEFORE FIVE CONGRESSIONAL COMMITTEES ON THE PRESIDENT'S PLAN THE FIRST LADY ALSO REPORTEDLY PLAYED A KEY ROLE IN CHOOSING THE PRESIDENT'S CABINET INCLUDING ATTORNEY GENERAL RENO DURING THE RECENT SENATE HEARINGS CONCERNING REAUTHORIZATION OF THE INDEPENDENT COUNSEL STATUTE MS RENO TESTIFIED THE REASON I SUPPORT THE CONCEPT OF AN INDEPENDENT COUNSEL WITH STATUTORY INDEPENDENCE IS THAT THERE IS AN INHERENT CONFLICT WHENEVER SENIOR EXECUTIVE BRANCH OFFICIALS ARE TO BE INVESTIGATED BY THE DEPARTMENT OF JUSTICE AND ITS APPOINTED HEAD THE ATTORNEY GENERAL THE INDEPENDENT COUNSEL ACT WAS DESIGNED TO AVOID EVEN THE APPEARANCE OF IMPROPRIETY IN THE CONSIDERATION OF ALLEGATIONS OF MISCONDUCT BY HIGHLEVEL EXECUTIVE BRANCH OFFICIALS I BELIEVE THAT THE JUSTICE DEPARTMENT SPECIALCOUNSEL PROCESS IS FULLY ADEQUATE TO ADDRESS THESE CONCERNS BUT IF ONE AGREES WITH THE ATTORNEY GENERAL'S ASSERTIONS I DO NOT SEE ANY WAY TO DISPUTE THAT THE PRESIDENT'S SPOUSE SHOULD BE SUBJECTED TO MANDATORY COVERAGE UNDER ANY NEW INDEPENDENT COUNSEL STATUTE THE INHERENT CONFLICT AND APPEARANCE PROBLEMS IDENTIFIED BY MS RENO WOULD EXIST JUST AS CLEARLY IF THE ATTORNEY GENERAL AND HER SUBORDINATES RETAINED RESPONSIBILITY FOR INVESTIGATING ALLEGATIONS OF MISCONDUCT AGAINST A FIRST LADY MOREOVER INVESTIGATION AND PROSECUTION OF A FIRST LADY WOULD IN MANY WAYS RAISE FAR MORE SENSITIVE ISSUES THAN CASES INVOLVING OTHER TOP PRESIDENTIAL AIDES AND ADVISERS IN FACT AN ATTORNEY GENERAL WOULD LIKELY RECOIL IN HORROR FROM THE IDEA OF TARGETING AND PURSUING THE BOSS'S SPOUSE IN CONNECTION WITH A CRIMINAL INQUIRY MEMBERS OF CONGRESS AND SOME MEMBERS OF THE PRESS CANNOT EVEN BRING THEMSELVES TO ASK MRS CLINTON TOUGH POLICY QUESTIONS THIS MAKES IT ESPECIALLY DIFFICULT TO IMAGINE THE ATTORNEY GENERAL AND CAREER PROSECUTORS TENACIOUSLY INVESTIGATING OR BRINGING CHARGES AGAINST A FIRST LADY EXCEPT IN THE MOST EXTREME CIRCUMSTANCES SUCH FACTORS WOULD ALSO CREATE ENORMOUS POLITICAL AND PRACTICAL OBSTACLES FOR THE ATTORNEY GENERAL THAT WOULD RULE OUT THE DISCRETIONARY APPOINTMENT OF AN INDEPENDENT COUNSEL TO PROSECUTE A FIRST LADY ONLY MANDATORY COVERAGE WILL FULFILL THE PURPOSES OFFERED TO JUSTIFY THE INDEPENDENT COUNSEL LAW AS A MATTER OF PRINCIPLE ANY NEW INDEPENDENT COUNSEL LAW SHOULD APPLY TO PRESIDENTIAL SPOUSES AND CONGRESS OR IT SHOULD NOT BE PASSED AT ALL MRS CLINTON'S ROLE AS POLICY AND POLITICAL ADVISER TO THE PRESIDENT IS NOT LIKELY TO BE AN ISOLATED INCIDENT IN THE HISTORY OF THE PRESIDENCY NOR CAN MANDATORY APPLICATION OF THE INDEPENDENT COUNSEL LAW TO PRESIDENTIAL SPOUSES BE CHALLENGED BY THE DEMOCRATS AS A PARTISAN ISSUE SEN DOLE HAS FULLY ENDORSED MRS CLINTON'S POLICY ACTIVITIES AS ENTIRELY APPROPRIATE HE OFTEN REMARKS AMIABLY THAT HE PLANS TO FULFILL A SIMILAR ROLE WHEN HIS WIFE ELIZABETH IS ELECTED PRESIDENT WHAT BETTER REASON COULD THERE BE FOR THE DEMOCRATIC CONGRESS TO VOTE TO ENSURE THAT THE PRESIDENT'S SPOUSE IS COVERED BY THE INDEPENDENT COUNSEL LAW MR BOUTROUS IS AN ATTORNEY IN WASHINGTON WHO HAS REPRESENTED PARTIES IN INDEPENDENT COUNSEL MATTERS 9402090116 940209 NORTHWEST AIR HAD 105 MILLION PROFIT IN FOURTH QUARTER BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES POSTED ITS SECOND CONSECUTIVE QUARTERLY PROFIT FOR THE FOURTH QUARTER BENEFITING FROM COSTCUTTING AND MORE STABLE FARES THE NATION'S FOURTHLARGEST AIRLINE WHICH NARROWLY AVERTED A BANKRUPTCYLAW FILING LAST SUMMER SAID IT EARNED 105 MILLION IN THE QUARTER IN THE THIRD QUARTER IT HAD POSTED ITS FIRST PROFIT IN TWO YEARS A HEALTHY 1123 MILLION NORTHWEST SAID ITS FOURTHQUARTER RESULTS WERE REDUCED BY AN 85 MILLION ACCOUNTING CHARGE ASSOCIATED WITH ITS NEW WAGE CONTRACTS BUT BOOSTED BY A 29 MILLION CREDIT FROM A YEAREND TICKETLIABILITY ACCOUNTING ADJUSTMENT OPERATING PROFIT WAS 748 MILLION ON REVENUE OF 215 BILLION CLOSELY HELD NORTHWEST WHICH HOPES TO RAISE AS MUCH AS 460 MILLION FROM AN INITIAL PUBLIC OFFERING PLANNED FOR THE CURRENT QUARTER HAD A LOSS OF 6952 MILLION IN THE YEAREARLIER FOURTH QUARTER IN THAT PERIOD IT HAD AN OPERATING LOSS OF 1854 MILLION ON REVENUE OF 193 BILLION THE ONLY MAJOR US AIRLINE TO REPORT NET INCOME IN THE FOURTH QUARTER NORTHWEST SAID ITS EARNINGS REFLECTED COSTCUTTING AN IMPROVED INDUSTRY PRICING CLIMATE AND A STRONG INCREASE IN YIELD A MEASURE OF REVENUE RECEIVED FOR EACH SEAT COSTS FELL 2 IN THE FINAL QUARTER YIELD WAS UP 11 AND LOAD FACTOR THE PERCENTAGE OF SEATS SOLD ROSE MORE THAN 3 NORTHWEST SAID TRAFFIC IN THE TRADITIONALLY SLOW FOURTH QUARTER WAS FLAT BUT BECAUSE NORTHWEST CUT ITS CAPACITY NEARLY 5 IT GOT MORE USAGE FROM ITS PLANES AND THE COMPANY SAID ITS REVENUE PER AVAILABLE SEATMILE ANOTHER PERFORMANCE MEASURE JUMPED 167 IN THE PERIOD SIX MONTHS AGO I WOULD HAVE SAID THIS WAS VERY UNLIKELY SAID ONE DEBT ANALYST WHO FOLLOWS NORTHWEST WHILE NORTHWEST DID INITIATE SOME PRICE PROMOTIONS EARLY IN THE FOURTH QUARTER INDUSTRY PRICES GENERALLY FOR FULLFARE AND 14DAY ADVANCEPURCHASE TICKETS ARE 20 HIGHER THAN A YEAR AGO AND AREN'T BEING DISCOUNTED THESE FARES ACCOUNT FOR ABOUT 40 OF NORTHWEST'S US BUSINESS WHICH ITSELF CONTRIBUTES NEARLY TWOTHIRDS OF TOTAL REVENUE THE COMPANY'S NEW THREEYEAR LABOR CONTRACTS WHICH CALL FOR WAGE AND BENEFIT CUTS ARE SAVING ABOUT 20 MILLION A MONTH THE 886 MILLION IN CONCESSIONS WHICH UNIONS AGREED TO IN EXCHANGE FOR AS MUCH AS A 37 STAKE IN NORTHWEST HELPED THE CARRIER AVOID A CHAPTER 11 FILING FOR PROTECTION FROM CREDITORS ALSO CONTRIBUTING TO THE TURNAROUND ARE A TWOYEAR COSTCUTTING DRIVE THAT ELIMINATED 4300 POSITIONS SHRINKING OR CLOSING OF UNPROFITABLE US HUBS AND SLOW IMPROVEMENT IN THE IMPORTANT JAPANESE MARKET 9402090115 940209 WHO'S NEWS HAVERTY FURNITURE COS HAVERTY FURNITURE COS ATLANTA FRANK S MCGAUGHEY JR 70 YEARS OLD IS RETIRING AS OF MARCH 31 AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS FURNITURE RETAILER HE WILL BE SUCCEEDED BY JOHN E SLATER JR 59 WHO CURRENTLY IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9402090114 940209 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CERPLEX GROUP INC AN INITIAL OFFERING OF 32 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 480000 ADDITIONAL SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MONTGOMERY SECURITIES ELECTROGLAS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA LEHMAN BROTHERS BEAR STEARNS & CO AND NEEDHAM & CO METRICOM INC AN OFFERING OF 22 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 330000 COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND COWEN & CO 9402090113 940209 WHO'S NEWS BODY DRAMA INC BODY DRAMA INC LOS ANGELES THIS MAKER OF INTIMATE APPAREL SAID ITS FOUNDER AND PRESIDENT CECELIA POST RESIGNED AFTER EIGHT YEARS WITH THE COMPANY TO PURSUE OTHER INTERESTS IN THE FASHION INDUSTRY MS POST 42 YEARS OLD DIDN'T RETURN CALLS SEEKING COMMENT STEPHEN DAVIS 54 WHO RECENTLY JOINED THE COMPANY AS SENIOR VICE PRESIDENT LEFT THE COMPANY BODY DRAMA HAS SINCE ELIMINATED HIS POSITION THOMAS P BAUMANN CHIEF FINANCIAL OFFICER AND EUGENE B PRICE II A DIRECTOR OF BODY DRAMA'S MAJORITY OWNER BEEBA'S CREATIONS INC OF SAN DIEGO ASSUMED THE BOARD SEATS VACATED BY MS POST AND MR DAVIS 9402090112 940209 POLITICS & POLICY LABOR IS PUSHING CLINTON TO MAKE SURE CHANGES IN WELFARE SYSTEM WON'T THREATEN UNION JOBS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MOMENT PRESIDENT CLINTON'S AIDES SAT DOWN WITH HONCHOS FROM THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES CIVILITY ENDED IN THE DEBATE OVER WELFARE REFORM THE GIANT PUBLICEMPLOYEES UNION READ THE RIOT ACT TO THE PRESIDENT'S WELFAREREFORM WORKING GROUP AT THE MIDDECEMBER MEETING A CLINTON AIDE SAYS THE LABOR OFFICIALS COMPLAINED THAT THEY'D BEEN FROZEN OUT AND DISREGARDED BY THE WHITE HOUSE AND THAT LABOR'S DEMANDS HAD TO BE CONSIDERED IF WELFARE REFORM WAS TO BECOME A REALITY OUR PEOPLE LEFT THE MEETING IN A DAZE THE CLINTON AIDE SAYS THAT WAS JUST THE START AS MR CLINTON MAPS OUT PRECISELY WHAT HE WILL PROPOSE TO DELIVER ON HIS PROMISE OF A WELFAREREFORM INITIATIVE THIS SPRING HE IS ALREADY ENCOUNTERING A VIGOROUS LOBBYING EFFORT BY ORGANIZED LABOR WHICH FEARS THAT LOWCOST WELFARE RECIPIENTS PUT TO WORK UNDER THE JOBS COMPONENT OF ANY REFORM PACKAGE COULD DISPLACE UNIONIZED WORKERS THE UNIONS' CONCERNS REPRESENT A REAL DILEMMA FOR MR CLINTON AFTER ALL HE JUST FINISHED FIGHTING WITH MUCH OF THE LABOR ESTABLISHMENT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND BADLY NEEDS UNION SUPPORT IN THE IMPENDING BATTLE OVER HEALTHCARE REFORM YET THE PRESIDENT IS ALSO UNDER PRESSURE FROM SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN AND FROM HIS OWN NEW DEMOCRAT POLITICAL ADVISERS TO PUSH A BOLD PROPOSAL TO END WELFARE AS WE KNOW IT AND THE CORE OF MR CLINTON'S EXPECTED PROPOSAL A TWOYEAR LIMIT ON WELFARE BENEFITS REQUIRES SOME SORT OF PROGRAM TO MOVE RECIPIENTS OFF OF WELFARE AND INTO JOBS WHILE ALLOWING THOSE LEFT BEHIND TO COLLECT CHECKS IN EXCHANGE FOR WORK WHITE HOUSE OFFICIALS INSIST THAT A COLLISION WITH LABOR OVER WELFARE REFORM IS FAR FROM INEVITABLE WE'LL WORK IT OUT SAYS BRUCE REED A TOP DOMESTIC POLICY ADVISER TO THE PRESIDENT WE HAVE PLENTY OF SHARED GOALS MR CLINTON HE INSISTS NEVER INTENDED TO RECOMMEND THE TYPE OF GIANT FEDERAL JOBS PROGRAM THAT LABOR MOST FEARS IT WON'T BE NECESSARY WE WON'T DO IT WE CAN'T AFFORD IT HE SAYS HIS TASK OF DEFLATING EXPECTATIONS ABOUT WELFARE REFORM HAS BEEN MADE MORE DIFFICULT BY A RECENT NEW YORK TIMES REPORT THAT AS MANY AS 23 MILLION PEOPLE COULD BE SUBJECT TO WORK REQUIREMENTS ONCE THEY'VE REACHED THE TWOYEAR LIMIT ON BENEFITS THAT REPORT SET OFF ALARM BELLS NOT ONLY IN THE LABOR MOVEMENT BUT IN CONGRESS WHERE IT STIRRED FEARS OF A BUDGETBUSTING PUBLICJOBS PROPOSAL MR REED THOUGH INSISTS THAT THE LATEST DRAFTS OF THE PRESIDENT'S REFORM PLAN ENVISION ONLY ABOUT ONETHIRD THAT MANY COMMUNITY SERVICETYPE JOBS ONCE THE PROGRAM BECOMES FULLY PHASED IN FIVE OR SIX YEARS FROM NOW THAT MODEST ESTIMATE HE SAYS STEMS FROM ONE HUGE EXEMPTION EXPECTED TO BE INCLUDED IN THE PRESIDENT'S PROPOSAL NEARLY TWO MILLION OF THE PROJECTED 56 MILLION WELFARE CASES IN 1999 WOULDN'T FACE ANY WORK REQUIREMENTS SPECIFICALLY THE EXEMPTED RECIPIENTS WOULD BE THOSE WHO ARE DISABLED HAVE SMALL CHILDREN OR SPECIAL NEEDS OR CASES IN WHICH ABANDONED OR IMMIGRANT CHILDREN ARE BEING RAISED BY SOMEONE OTHER THAN THEIR PARENTS ON THE POSITIVE AND MAYBE OVERLY OPTIMISTIC SIDE THE ADMINISTRATION ALSO EXPECTS NEARLY TWO MILLION RECIPIENTS TO LEAVE THE WELFARE ROLLS IF UNIVERSAL HEALTHCARE AND CHILDCARE COVERAGE ARE ADDED TO THE ALREADY ENACTED EARNED INCOME TAX CREDIT THAT LEAVES THE PROBLEM GROUP OF ABOUT 15 MILLION TO 18 MILLION CASES THE ADMINISTRATION'S PLAN WILL CALL FOR THESE PEOPLE TO BE PUSHED INTO AN INTENSIVE TWOYEAR JOB TRAINING AND PLACEMENT EFFORT WHILE EMPLOYERS ARE OFFERED INCENTIVES TO HIRE THEM THERE WILL BE PRESSURE FROM ACROSS THE SPECTRUM TO MOVE THESE PEOPLE INTO MEANINGFUL PRIVATESECTOR JOBS SAYS DAVID ELLWOOD A LEADING ANTIPOVERTY RESEARCHER WHO IS COCHAIRMAN OF THE PRESIDENT'S WELFARE WORKING GROUP WITH MR REED EVERYONE INCLUDING LABOR SHARES THAT GOAL BUT THE ADMINISTRATION'S CURRENT PROJECTION THAT NEARLY HALF THOSE PEOPLE WILL ACTUALLY GET JOBS IS A NOTION THAT MANY WELFARE EXPERTS CONSIDER FANCIFUL IT'S PIE IN THE SKY SAYS DOUGLAS BESHAROV A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE THERE IS NO VERIFIABLE EVIDENCE THAT ANY JOBS PROGRAM HAS EVER SUCCEEDED IN GETTING A SIGNIFICANT NUMBER OF WELFARE RECIPIENTS INTO WORK THE ADMINISTRATION IS DIVING INTO THIS THING WITHOUT ANY CLEAR IDEA WHERE IT WILL END UP OR HOW MUCH IT WILL COST COST IS INDEED ONE OF THE MAJOR IMPONDERABLES THE 1970SERA COMPREHENSIVE EMPLOYMENT AND TRAINING ACT JOBS PROGRAM COST THE FEDERAL GOVERNMENT NEARLY 10 BILLION A YEAR AT ITS PEAK MANY OUTSIDE EXPERTS SUGGEST THAT A MEANINGFUL WELFAREREFORM PLAN THESE DAYS COULD COST 25 BILLION TO 30 BILLION A YEAR VASTLY MORE THAN THE ADMINISTRATION'S CURRENT ESTIMATE OF 4 BILLION TO 7 BILLION TO DO WELFARE REFORM RIGHT YOU HAVE TO HELP WELFARE RECIPIENTS WHILE MAKING SURE YOU DON'T HURT THE WORKING POOR MANY OF WHOM ARE IN PUBLICSECTOR UNIONS SAYS SAR LEVITAN DIRECTOR OF THE CENTER FOR SOCIAL POLICY STUDIES AT GEORGE WASHINGTON UNIVERSITY OF COURSE THAT COSTS THE KIND OF MONEY NO ONE IS WILLING TO COMMIT WHAT MOST CONCERNS UNIONS THOUGH IS THAT A FAILED TRAINING AND PLACEMENT PROGRAM WILL LEAVE MORE THAN A MILLION WELFARE RECIPIENTS AT THE TWOYEAR LIMIT AN ABLEBODIED AVALANCHE MOVING INTO A LOOSELY DEFINED ARRAY OF MINIMUMWAGE COMMUNITYSERVICE WORK OR JOBS WITH NONPROFIT ORGANIZATIONS SUCH AS HOSPITALS STATES AND CITIES STRUGGLING UNDER TIGHT BUDGETS MIGHT TURN TO THIS WORK FORCE INSTEAD OF TO WORKERS THEY'D ORDINARILY HIRE AT UNION WAGES LABOR LEADERS SAY OR WORSE THEY SAY GOVERNMENT OFFICIALS MAY DISCONTINUE PUBLIC PROGRAMS IN EXPECTATION OF LATER FILLING THEM WITH LOWCOST FORMER WELFARE RECIPIENTS AFSCME LOBBYISTS IN DAILY CALLS TO THE WHITE HOUSE ARE PUSHING LABOR'S TIMEHONORED SOLUTION MAKE SURE THE COMMUNITYSERVICE JOBS ARE THE TYPES OF THINGS NO ONE WOULD EVER HIRE SOMEONE TO DO SAYS ARNOLD PACKER WHO RAN CETA PROGRAMS AS AN ASSISTANT LABOR SECRETARY IN THE 1970S BUT ADMINISTRATION OFFICIALS ARGUE THAT SUCH A SOLUTION WOULD DEFEAT THE PURPOSE OF COMMUNITY WORK WHICH IS TO BUILD SKILLS THAT WILL EVENTUALLY MAKE THE RECIPIENT ATTRACTIVE TO SOME PRIVATESECTOR EMPLOYER INDEED OBSERVES MR PACKER IN CETA WE FOUND THAT EXPERIENCE RAKING LEAVES OR PICKING UP GARBAGE DOESN'T OFFER MUCH OF A LEG UP IN THE JOB MARKET AFSCME OFFICIALS BELIEVE THEY ARE WELLPOSITIONED TO INFLUENCE THE WHITE HOUSE IN THEIR DIRECTION GERALD MCENTEE THE UNION'S PRESIDENT IS ARGUABLY MR CLINTON'S STRONGEST LOYALIST IN LABOR ALTHOUGH THE AFSCME OPPOSED NAFTA IT DIDN'T DO SO AS VIGOROUSLY AS OTHER UNIONS BEYOND THAT THE UNION'S FORMER LOBBYIST JERRY KLEPNER IS NOW ASSISTANT SECRETARY OF HEALTH AND HUMAN SERVICES FOR LEGISLATION AND WILL HAVE A KEY ROLE IN NEGOTIATING WELFARE REFORM BUT THE AMERICAN ENTERPRISE INSTITUTE'S MR BESHAROV THINKS THOSE TIES WON'T BE ENOUGH LISTEN BECAUSE LABOR WILL BE SO OPPOSED TO WELFARE REFORM THE ADMINISTRATION WILL SIMPLY HAVE TO MOVE TO THE RIGHT AND RELY ON REPUBLICAN SUPPORT TO GET IT PASSED HE PREDICTS IN THE END IT'LL LOOK LIKE THE NAFTA COALITION ALL OVER AGAIN 9402090111 940209 TEXAS JOURNAL CONSUMER ALERT BACK TO BUYER BEWARE PERSONNEL SHAKEUP BY ATTORNEY GENERAL MAY HURT PROTECTION BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL HAS ATTORNEY GENERAL DAN MORALES TAKEN THE TEETH OUT OF CONSUMER PROTECTION UNDER FORMER ATTORNEYS GENERAL CONSUMER PROTECTION WAS ELEVATED TO A TOP PRIORITY BY PURSUING TRADE SCHOOLS PYRAMID SCHEMES AND MISLEADING ADVERTISING THE STATE WON A NATIONAL REPUTATION FOR TOUGH ENFORCEMENT AND THE ENMITY OF BUSINESS WHICH COMPLAINED ABOUT ACTIVISM RUN AMOK NOW CONSUMER GROUPS FEAR THE PENDULUM MAY BE SWINGING THE OTHER WAY THEY SAY THE ATTORNEY GENERAL'S CONSUMERPROTECTION DIVISION HAS BECOME NOTICEABLY LESS AGGRESSIVE IN THE PAST FEW YEARS WHAT'S MORE OVER THE PAST TWO MONTHS A HALFDOZEN OF THE AGENCY'S TOP CONSUMER LAWYERS HAVE BEEN FIRED OR LEFT THE AGENCY LEAVING THE FATE OF SCORES OF CASES UP IN THE AIR SOME OF THE POSITIONS WON'T BE FILLED AND THE CONSUMERPROTECTION OPERATION RECENTLY WAS MERGED INTO THE ATTORNEY GENERAL'S ANTITRUST DIVISION AND ITS CHIEF GIVEN NEW TASKS ANYTIME YOU MAKE THAT KIND OF MASS CHANGE IT CAUSES PEOPLE TO WORRY ABOUT YOUR COMMITMENT SAYS TOM SMITH STATE DIRECTOR OF PUBLIC CITIZEN THE CONSUMER GROUP BASED IN WASHINGTON DC NONSENSE SAYS A SPOKESMAN FOR MR MORALES WHO BECAME ATTORNEY GENERAL IN 1991 THE FIRINGS HE SAYS DON'T SIGNAL ANY POLICY CHANGE BUT ARE MERELY UNRELATED PERSONNEL DECISIONS WE'RE NOT GOING TO GET INTO EXPLAINING OUR MANAGEMENT DECISIONS EXCEPT THAT THEY ARE GOOD DECISIONS SAYS THE SPOKESMAN RON DUSEK FOR CONSUMER GROUPS AS WELL AS FOR THE FIRED ATTORNEYS THE TEST OF MR MORALES'S DEDICATION WILL COME IN A HANDFUL OF ISSUES INCLUDING CREDIT INSURANCE UTILITY REGULATION AND CHARITY CARE WE'RE GOING TO BE HOLDING DAN TO HIS PROMISE THAT THIS ISN'T A BACKING AWAY FROM HIS PROTECTION OF CONSUMERS MR SMITH SAYS THE AGENCY ALSO AGREES THAT THE CHANGES SHOULD BE JUDGED BY THE RESULTS SAYS MR DUSEK IT'S JUST ONE OF THOSE WAITANDWATCH SITUATIONS WITH THAT IN MIND HERE ARE A HANDFUL OF CONSUMER ISSUES THAT BEAR WATCHING DURING THE 1980S TEXAS PLAYED A LEADING ROLE IN MULTISTATE INVESTIGATIONS INTO DECEPTIVE OR MISLEADING ADVERTISING BY PROMINENT NATIONAL COMPANIES THE OFFICE TOOK ON AIRLINES OVER THEIR FARE ADVERTISING AND CHALLENGED QUAKER OATS CO AND KELLOGG CO OVER CLAIMS ABOUT THE HEALTH PROPERTIES OF THEIR CEREALS ITS BESTKNOWN CASE INVOLVED AN AD FROM VOLVO CARS OF NORTH AMERICA WHICH SHOWED A VOLVO SURVIVING A MONSTER TRUCK'S EFFORTS TO CRUSH IT AN INVESTIGATION BY WILLIAM GOODMAN ONE OF THE FIRED ASSISTANT ATTORNEYS GENERAL FOUND THAT THE CAR'S FRAME HAD BEEN SUPPORTED BY STEEL BEAMS MANY OF THE ADVERTISING CASES WERE LED BY STEPHEN GARDNER AN OUTSPOKEN ASSISTANT ATTORNEY GENERAL WHO WAS FIRED BY MR MORALES IN DECEMBER 1991 MR SMITH OF PUBLIC CITIZEN AND MR GARDNER SAY THAT DECEPTIVE ADVERTISING HAS BEEN A LOW PRIORITY FOR THE ATTORNEY GENERAL'S OFFICE SINCE MR GARDNER LEFT MARKETERS HAVE HAD A GETOUTOFJAILFREE CARD FOR YEARS SAYS MR GARDNER NOW AN ATTORNEY IN DALLAS SPECIALIZING IN CONSUMERFRAUD ISSUES MR DUSEK SAYS THAT OUTRAGEOUS ADS LIKE THE VOLVO SPOT WILL CONTINUE TO PROVOKE A RESPONSE BUT HE ADDS THOSE ARE ONEINAMILLION CASES AND GOING AFTER CLAIMS BY NATIONAL ADVERTISERS IS LESS IMPORTANT THAN TARGETING OTHER KINDS OF CONSUMER FRAUDSUCH AS IN THE NURSINGHOME INDUSTRY HE SAYS AN EARLIER PROBE INTO CRUISELINE ADVERTISING FOR EXAMPLE MIGHT NOT HAPPEN TODAY PEOPLE WHO ARE ABLE TO AFFORD CRUISE TRIPS PROBABLY NEED OUR HELP LESS THAN CHILDREN THE POOR AND THE ELDERLY MR DUSEK SAYS BUT MR SMITH SAYS THAT VIEW IS TOO NARROW CRACKING DOWN ON DECEPTIVE ADVERTISING HE SAYS HAS A BROAD AND POWERFUL IMPACT IT'S WHERE LIMITS ARE PUT ON THE BEHAVIOR OF COMPANIES HE SAYS AGGRESSIVE INVESTIGATION INTO SOME IMPORTANT INSURANCECONSUMER ISSUES HAS STALLED SAYS ED SALAZAR WHO WAS DISMISSED AS AN ASSISTANT ATTORNEY GENERAL IN DECEMBER MR SALAZAR SAYS HE WAS FIRED BECAUSE HE WOULDN'T GO ALONG WITH THE ATTORNEY GENERAL'S DECISION IN NOVEMBER TO DROP A LAWSUIT AGAINST TEXAS FARM BUREAU UNDERWRITERS CO THE LAWSUIT FILED IN OCTOBER IN TRAVIS COUNTY DISTRICT COURT ACCUSED THE PROPERTY AND CASUALTY INSURER OF OVERCHARGING FOR INSURANCE ON PLEASURE BOATS THE INSURER HAS DENIED THE CHARGES THE SAME LAWSUIT MADE NEARLY IDENTICAL ACCUSATIONS AGAINST STATE FARM FIRE & CASUALTY CO AND ALLSTATE INSURANCE CO MR SALAZAR SAYS HE IS WATCHING CLOSELY TO SEE WHAT HAPPENS TO THOSE CHARGES AMY JOHNSON THE STATE PUBLIC INSURANCE COUNSEL WHOSE JOB IS TO REPRESENT THE INTERESTS OF CONSUMERS IN INSURANCE MATTERS IS ALSO DISTRESSED BY THE ATTORNEY GENERAL'S DECISION LATE LAST YEAR TO DROP A LAWSUIT AGAINST TWO FURNITURE RETAILERS LACK'S FURNITURE CENTER INC OF VICTORIA AND J EDELSTEIN FURNITURE CO OF MCALLEN THE LAWSUIT FILED IN TRAVIS COUNTY DISTRICT COURT CHARGED THE RETAILERS WITH DECEPTIVETRADE PRACTICES RELATED TO CREDITINSURANCE POLICIES WHICH PAY OFF INSTALLMENT LOANS IF THE CUSTOMER DIES OR IS DISABLED A SPOKESWOMAN FOR EDELSTEIN DECLINES COMMENT ON THE LAWSUIT THE PRESIDENT OF LACK'S DENIES THE CHARGES IT'S DEFINITELY SIGNIFICANT THAT THE CASES WERE DROPPED MS JOHNSON SAYS IT'S PRETTY DISTURBING YOU HAVE TO BE WILLING TO FILE CASES PURSUE CASES COMMIT RESOURCES AND WIN THEM MR SALAZAR WHO WAS INVOLVED IN THE CREDITINSURANCE CASES BELIEVES THEY WERE DROPPED BECAUSE THE COMPANIES PUT PRESSURE ON MR MORALES HE SUSPECTS THAT SIMILAR PRESSURE CAUSED THE ATTORNEY GENERAL TO END A CREDITINSURANCE INVESTIGATION OF AUTO DEALERSHIPS LAST SUMMER ESSENTIALLY THE WHOLE IDEA OF CREDIT INSURANCE HAS BEEN DROPPED HE SAYS MR DUSEK SAYS THE ATTORNEY GENERAL DECIDED TO ABANDON THE LAWSUITS AGAINST THE FURNITURE RETAILERS BECAUSE OF FLAWS IN THE CASE AND HE INSISTS THE AGENCY HASN'T ABANDONED CREDITINSURANCE CASES INSTEAD THE AGENCY HAS DECIDED THAT IT'S MORE COSTEFFECTIVE TO TAKE ON THE SMALL NUMBER OF INSURERS WHO MAKE THE POLICIES AVAILABLE RATHER THAN THE THOUSANDS OF RETAILERS WHO SELL THEM EVEN THOUGH BOTH CAN VIOLATE THE LAW THE AGENCY HAS LAWSUITS PENDING AGAINST 10 INSURERS AND IS INVESTIGATING ANOTHER 10 HE SAYS FOR THE PAST DECADE THE ATTORNEY GENERAL'S OFFICE HAS BEEN ONE OF THE MOST ACTIVE AND AGGRESSIVE PARTIES IN DISPUTES INVOLVING TELEPHONE AND ELECTRIC UTILITIES ASSISTANT ATTORNEY GENERAL SCOTT MCCOLLOUGH WAS A PARTICULARLY FORCEFUL ADVOCATE FOR HOLDING DOWN UTILITY PRICES BUT MR MCCOLLOUGH WAS FIRED LAST WEEK AT A TIME WHEN HIS SECTION HAD MORE THAN 90 CASES PENDING BEFORE THE PUBLIC UTILITY COMMISSION OR IN VARIOUS STAGES OF APPEAL MOST INVOLVED ARCANE BUT POTENTIALLY CRUCIAL AREAS OF TELEPHONE REGULATION CONNECTIONS INTO LOCAL PHONE NETWORKS FOR INSTANCE OR THE ALLOCATION OF COSTS FOR TELEPHONE SERVICES WE'RE COMPLETELY RECONFIGURING THE TELECOMMUNICATIONS SYSTEM SAYS MR MCCOLLOUGH WHO SAYS HE DOESN'T KNOW WHY HE WAS FIRED IN ONE CASE TO BE DECIDED BY AN ADMINISTRATIVE LAW JUDGE MR MCCOLLOUGH IS OPPOSING A PROPOSAL BY SOUTHWESTERN BELL CO TO TURN OVER MAINTENANCE OF MORE OF THE PHONE LINES TO THE CONSUMER MR MCCOLLOUGH ARGUES THAT WOULD SHIFT THE MAINTENANCE COST WITHOUT ANY REDUCTION IN THE PRICE OF A PHONE LINE THE ATTORNEY GENERAL'S OFFICE AND SOUTHWESTERN BELL ARE DISCUSSING A SETTLEMENT MR MCCOLLOUGH SAYS BUT HE IS CONCERNED THAT HIS REPLACEMENT LACKS THE DETAILED KNOWLEDGE OF THE CASE TO PROTECT THE INTERESTS OF THE STATE CONSUMER GROUPS ALSO WORRY THAT WITHOUT MR MCCOLLOUGH THE ATTORNEY GENERAL'S OFFICE WON'T CONTINUE TO PLAY AN ACTIVE ROLE IN SHAPING TELECOMMUNICATIONS POLICY FOR THE STATE HE IS APPLAUDED FOR DELIVERING A CRITICAL INDEPENDENT ANALYSIS OF THE TELEPHONE INDUSTRY'S PROPOSALS FOR LESS REGULATION DURING THE LAST LEGISLATIVE SESSION IT PAYS TO HAVE SOMEBODY WHO HAS A PRETTY HEALTHY SKEPTICISM ABOUT THE CLAIMS OF THESE COMPANIES AND TO LOOK REALLY HARD AT ALL THE HYPE SAYS BILL MAGNESS EXECUTIVE DIRECTOR OF THE COMMUNICATIONS COALITION OF TEXAS THERE'S A WHOLE LOT OF RATEPAYER AND TAXPAYER MONEY AT STAKE THE PERSONNEL SHAKEUP IN THE ATTORNEY GENERAL'S OFFICE GUTTED THE CHARITABLETRUST SECTION ANN KITCHEN THE ASSISTANT SECTION CHIEF WAS FIRED AND SECTION CHIEF ROSE ANN REESER RESIGNED IN JANUARY TO WORK FOR THE TEXAS DEPARTMENT OF INSURANCE WHEN SHE WAS FIRED THREE WEEKS AGO MS KITCHEN WAS WORKING TO IMPLEMENT A NEW STATE LAW WHICH SHE HELPED DRAFTTHAT ESTABLISHED THE LEVEL OF CHARITY CARE THAT NONPROFIT HOSPITALS MUST PROVIDE HER ALLIES IN FIGHTING FOR THE LEGISLATION WORRY THAT HER DISMISSAL MEANS THE AGENCY WON'T BE FORCEFUL IN MONITORING COMPLIANCE THE CHARITABLETRUST DIVISION PLAYED A VERY IMPORTANT ROLE IN EXPOSING THE PROBLEMS IN THIS AREA SAYS JOHN HILDRETH SOUTHWEST DIVISION DIRECTOR FOR CONSUMERS UNION THE ADVOCACY GROUP I WOULD HOPE THAT THE CHANGES DON'T MEAN THAT THE DEPARTMENT IS GOING TO BE ANY LESS VIGOROUS IN ITS ENFORCEMENT MS KITCHEN WHO SAYS SHE WAS FIRED AFTER BEING TOLD THAT MR MORALES WAS CHANGING THE FOCUS OF THE AGENCY IS PARTICULARLY CONCERNED THAT HER FORMER EMPLOYER MIGHT NOT SEEK TO PLUG A BIG HOLE IN THE LAW A NARROW PROVISION ADDED TO IT BY A WEST TEXAS LAWMAKER THAT EXEMPTS HIGH PLAINS BAPTIST HOSPITAL IN AMARILLO SHE BELIEVES IT IS POSSIBLE TO CHALLENGE THE EXEMPTION IT'S DEFINITELY A VIOLATION OF THE SPIRIT OF THE LAW MS KITCHEN SAYS MR DUSEK SAYS THAT IT ISN'T THE ATTORNEY GENERAL'S JOB TO FIX LOOPHOLES IN THE LAW IF THERE IS AN EXEMPTION THAT'S A LEGISLATIVE DECISION HE SAYS AND IT WOULD BE UP TO THE LEGISLATURE TO CHANGE IT ADVOCATES FOR THE ELDERLY ARE W ATCHING TO SEE WHETHER MR MORALES BACKS AWAY FROM WHAT HAS BEEN AN ENERGETIC INVESTIGATION OF ABUSES IN THE POLITICALLY POWERFUL NURSINGHOME INDUSTRY STATE LAW GIVES THE AGENCY A POTENT WEAPON IN BATTLING NURSINGHOME ABUSES ITS ATTORNEYS CAN VISIT FACILITIES TO INVESTIGATE COMPLAINTS WITHOUT NOTICE AND VIOLATORS CAN BE QUICKLY PLACED UNDER THE CONTROL OF A TRUSTEE SINCE 1991 THE ATTORNEY GENERAL HAS TAKEN OVER OR CLOSED EIGHT NURSING HOMES AND SUED 30 OTHERS NO ONE FROM THE ELDERCARE SECTION HAS BEEN FIRED BUT THERE IS ONE CLOUD THAT CONCERNS ADVOCATES THE SECTION CHIEF MARK CHOUTEAU WHILE REMAINING IN THE DIVISION HAS BEEN REPLACED BY A PRIVATE FORT WORTH ATTORNEY A CHRONOLOGY OF CONSUMER ACTIVISM FROM THE TEXAS STATE GOVERNMENT SINCE 1973 LATE 1970S THE ATTORNEY GENERAL'S OFFICE PURSUES TRADESCHOOL ABUSES BOILERROOM OPERATIONS SELLING FRAUDULENT OIL AND GAS PARTNERSHIPS AND ABUSES IN THE NURSINGHOME INDUSTRY DECEMBER 1987 CHRYSLER CORP AGREES TO PAY 17 MILLION TO MORE THAN 2000 TEXAS CUSTOMERS AFTER A MULTISTATE INVESTIGATION LED BY TEXAS DISCOVERED THE COMPANY HAD DISCONNECTED ODOMETERS ON CARS DRIVEN BY COMPANY EXECUTIVES AND THEN RESOLD THE CARS AS NEW OCTOBER 1988 THE ATTORNEY GENERAL SUES QUAKER OATS CO OVER THE CEREAL MAKER'S CLAIMS THAT ITS OATMEAL COULD LOWER CHOLESTEROL QUAKER HALTS THE CLAIMS WITHOUT ADMITTING ANY WRONGDOING NOVEMBER 1990 VOLVO CARS OF NORTH AMERICA AGREES TO PULL A TELEVISION AD SHOWING A VOLVO SURVIVING A MONSTER TRUCK'S ATTEMPT TO CRUSH IT AFTER AN ATTORNEY GENERAL'S INVESTIGATION REVEALS THAT THE CAR WAS REINFORCED WITH STEEL BRACES THE COMPANY AGREES TO PAY THE STATE 316000 FOR INVESTIGATIVE COSTS NOVEMBER 1990 ATTORNEY GENERAL MATTOX SUES HOUSTON'S METHODIST HOSPITAL ALLEGING THE HOSPITAL DOESN'T DO ENOUGH TO PROVIDE CHARITY CARE TO THE POOR IN JUNE 1993 A LAW SETTING NEW LEVELS OF REQUIRED CHARITY CARE IS SIGNED AND ATTORNEY GENERAL DAN MORALES AGREES TO DROP THE CASE IN EXCHANGE FOR METHODIST'S COMMITMENT TO PROVIDE A CERTAIN LEVEL OF CHARITABLE CARE SEPTEMBER 1991 ATTORNEY GENERAL MORALES FORMS A TASK FORCE TO INVESTIGATE CHARGES OF BOUNTYHUNTING'' AND OTHER ABUSIVE PRACTICES BY PSYCHIATRIC HOSPITALS OPERATING IN THE STATE IN JANUARY 1994 HIS OFFICE FILES SUIT AGAINST A FORT WORTH HOSPITAL ALLEGING IT PAID A HIGHSCHOOL COUNSELOR TO RECRUIT PATIENTS NOVEMBER 1993 MR MORALES CALLS FOR A BAN ON SMOKING IN FASTFOOD RESTAURANTS AND HIS CONSUMERPROTECTION CHIEF THREATENS TO SUE UNDER THE DECEPTIVE TRADE PRACTICES ACT IF THE RESTAURANTS DON'T COMPLY 9402090110 940209 FINANCING BUSINESS METRICOM INC METRICOM INC LOS GATOS CALIF A PROVIDER OF WIRELESS DATACOMMUNICATIONS NETWORKS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PROPOSED PUBLIC OFFERING OF 22 MILLION OF ITS COMMON SHARES OF THE SHARES BEING OFFERED 21 MILLION WILL BE OFFERED BY THE COMPANY WITH THE REMAINING 100000 SHARES BEING OFFERED BY CERTAIN SELLING SHAREHOLDERS THE STOCK CLOSED AT 2225 A SHARE UP 50 CENTS IN NASDAQ STOCK MARKET TRADING LEAD UNDERWRITERS OF THE OFFERING ARE DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND COWEN & CO METRICOM SAID METRICOM SAID IT PLANS TO USE PROCEEDS TO EXPAND ITS WIRELESS DATA TECHNOLOGY APPLICATIONS CURRENTLY THE COMPANY HAS 98 MILLION COMMON SHARES OUTSTANDING 9402090109 940209 BUSINESS BRIEF MR COFFEE INC DONALDSON LUFKIN IS HIRED TO BE FINANCIAL ADVISER MR COFFEE INC SAID ITS BOARD OF DIRECTORS HIRED EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SECURITIES CORP AS ITS FINANCIAL ADVISER THE COMPANY LAST MONTH SAID IT WAS ENTERING DISCUSSIONS WITH AN UNIDENTIFIED POTENTIAL BUYER MR COFFEE IS THE LEADING SELLER OF AUTOMATIC DRIP COFFEE MAKERS IN THE US WITH ABOUT 34 OF THE MARKET THE CLEVELAND COMPANY ALSO SELLS COFFEE FILTERS WATERFILTER MACHINES ICEDTEA MAKERS AND A PORTABLE POTATO BAKER LAST SPRING MR COFFEE WAS THE SUBJECT OF TAKEOVER RUMORS THOUGH NOTHING CAME OF THEM 9402090108 940209 WHO'S NEWS INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO PURCHASE NY THOMAS C JORLING 53 YEARS OLD WAS NAMED VICE PRESIDENT ENVIRONMENTAL AFFAIRS A NEW POST AT THIS PRINTING AND WRITING PAPERS PAPERBOARD PACKAGING AND WOOD PRODUCTS COMPANY HE WAS COMMISSIONER FOR NEW YORK STATE'S DEPARTMENT OF ENVIRONMENTAL CONSERVATION 9402090106 940209 MARKETING & MEDIA ADVERTISING CLAYMATION'S CREATOR DEVELOPS NEW WIZARDRY FOR CHIPS AHOY BY KEVIN GOLDMAN IN A NEW COMMERCIAL FOR CHIPS AHOY A TECHNICAL TOUR DE FORCE TRANSFORMS THE EXCLAMATION POINT ON THE COOKIE BAG INTO A DANCING FOOL THE BLUE PUNCTUATION MARK SPINS AND GYRATES TO BENNY GOODMAN'S SWING SWING SWING THE TELEVISION AD FROM FCB/LEBER KATZ PARTNERS FOR RJR NABISCO'S CHIPS AHOY ACTUALLY HAS A PURPOSE BEYOND TRYING TO MOVE MORE CHOCOLATECHIP COOKIES OFF SUPERMARKET SHELVES ANOTHER SUBTLER OBJECTIVE IS TO INTRODUCE MADISON AVENUE TO A NEW CREATIVE TECHNIQUE THE CREATOR OF THE NEW ADVERTISING APPROACH CALLED DIMENSIONAL ANIMATION IS WILL VINTON AND HE IS COUNTING ON SUCCESS TO REPEAT ITSELF MR VINTON SWEPT INTO ADVERTISING IN THE 1980S WITH CLAYMATION WHICH SPAWNED THOSE DANCING RAISINS SINGING I HEARD IT THROUGH THE GRAPEVINE AS WELL AS MANY IMITATORS BUT THE ADVERTISING WORLD WHICH LATCHES ONTO NEW GIMMICKS WITH A VENGEANCE IS EQUALLY UNFORGIVING WHEN THE FAD FADES IN 1991 MR VINTON VISITED AGENCIES TO CONVINCE MADISON AVENUE THAT CLAYMATION WASN'T OVEREXPOSED AND WAS FAR FROM DEATH'S DOOR BUT IT WAS A TOUGH SELL WITH CLAYMATION SO ASSOCIATED WITH THE CALIFORNIA RAISINS CAMPAIGN AD EXECUTIVES COMPLAINED THEN THAT AS SOON AS CONSUMERS SAW A CLAYMATION COMMERCIAL THEY USUALLY THOUGHT OF RAISINS AND NOT THE PRODUCT IN THE ADVERTISEMENT WE KNEW WE HAD TO OPEN UP OUR TECHNICAL TOOLS BECAUSE WE HAD A STUDIO OF ARTISTS AND ANIMATORS WHO WERE UNDERUTILIZED CONCEDES MR VINTON CHIEF EXECUTIVE OFFICER OF THE WILL VINTON STUDIOS IN PORTLAND ORE THE IMPORTANT THING WHEN YOU GET PIGEONHOLED AS WE DID WITH THE RAISINS AND CLAYMATION IS TO SHOW THE RANGE OF WHAT ELSE IS POSSIBLE SO MR VINTON AND HIS STUDIO DEVELOPED A COMPLICATED TECHNIQUE OF MELDING THREE FORMS OF PRODUCTION CLAYMATION STOPMOTION ANIMATION AND COMPUTER ANIMATION THE CHIPS AHOY COMMERCIAL IS THE FIRST TIME THE THREE HAVE BEEN COMBINED IT WAS A PAINSTAKING PROCESS TAKING 10 SIXDAY WORKWEEKS TO PRODUCE A HALFMINUTE SPOT THE IDEA TO USE THE THREE METHODS IN ONE COMMERCIAL CAME AFTER THE AD AGENCY DISCUSSED WITH VINTON EXECUTIVES WHAT IT HOPED TO ACCOMPLISH THEY WANTED DIMENSION IN THE SPOT NOT UNLIKE 3D SAYS DAVID ALTSCHUL PRESIDENT OF VINTON STUDIOS THEY WANTED THE EXCLAMATION POINT TO LEAP OFF THE PACKAGE AND HAVE A PERSONALITY IN THE COMMERCIAL THE PUNCTUATION MARK BOUNCES ONSTAGE PLUNGES INTO A CHIPS AHOY BAG AND DIVES INTO A SEA OF COOKIES AMONG OTHER FEATS VINTON AND FCB/LEBER KATZ DECLINE TO DISCLOSE THE COST OF CREATING THE ANIMATED GYMNASTICS ACCORDING TO AC NIELSEN CHIPS AHOY RANKS AS THE NO 2 NATIONAL BRAND IN THE COOKIE CATEGORY WITH SALES OF 1641 MILLION UP 4 IN THE 52WEEK PERIOD ENDED SEPT 11 THE NO 1 COOKIE BRAND IS RJR NABISCO'S OREO WHOSE SALES WERE DOWN 45 TO 2011 MILLION SHOPPERS HAVE BEEN SWITCHING TO CHEAPER PRIVATELABEL COOKIES WHICH POSTED A SALES GAIN OF 16 TO 297 MILLION THE ENTIRE COOKIE CATEGORY HAD SALES OF 33 BILLION UP 38 THE VISUAL APPEAL OF THE COMMERCIAL WHICH BEGAN AIRING LAST WEEK ON SUCH BROADCAST NETWORK SHOWS AS HOME IMPROVEMENT MAD ABOUT YOU SISTERS AND COACH IS AIMED AT WHAT ELSE BREAKING THROUGH THE CLUTTER INDEED AS SOON AS THE SPOT BEGINS WITH THE BIGBAND CLASSIC IT'S HARD TO RESIST LOOKING AT THE SCREEN AND ONCE THE EXCLAMATION STARTS DOING ITS THING MOST VIEWERS WILL BE HOOKED EVERYONE IN ADVERTISING IS LOOKING FOR SOMETHING NEW TO LATCH ONTO SAYS BOB NEUMAN SENIOR VICE PRESIDENT GROUP CREATIVE DIRECTOR AT FCB/LEBER KATZ THE NEW YORK OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS THIS COULD BE IT AND WE'RE FIRST WITH IT BUT OTHER AD AGENCY EXECUTIVES ARE SKEPTICAL THAT CLIENTS WILL BE SO WILLING TO FOLLOW THE LEAD OF RJR NABISCO MY FEELING IS THAT ONCE SOMEONE HAS DONE IT IT'S BEEN DONE AND EVERYONE ELSE IS COPYING IT SAYS JONATHAN MANDELL GROUP CREATIVE DIRECTOR AT YOUNG & RUBICAM TECHNIQUES LIKE CLAYMATION AND DIMENSIONAL ANIMATION AREN'T ADVERTISING IDEAS THEY ARE MECHANICAL DEVICES IN SEARCH OF AN ADVERTISING IDEA MR MANDELL WHO HASN'T SEEN THE CHIPS AHOY SPOT ADDS THAT'S NOT TO SHORTCHANGE WHAT THEY'RE TRYING TO DO IT MAY BE GREAT WHAT USUALLY HAPPENS IS THAT THE FIRST ONE OUT THERE TENDS TO OWN THE TECHNIQUE EVERYTHING THAT FOLLOWED THE RAISINS LOOKED LIKE A CHEAP IMITATION EVEN IF IT WASN'T SUCH AN ATTITUDE IS PERHAPS WHY THE VINTON STUDIOS HAVE HOPES FOR DIMENSIONAL ANIMATION FAR BEYOND THE CONFINES OF MADISON AVENUE MY EXPECTATIONS ARE FOR IT TO BE USED IN THEATRICAL FAMILY ENTERTAINMENT MR ALTSCHUL SAYS ALL THE HOLLYWOOD STUDIOS ARE DYING TO GET ON THE BANDWAGON FOR A TECHNICAL BREAKTHROUGH MR VINTON CONCEDES THAT IT WAS TIME TO EVOLVE BEYOND THE CREATURES CREATED BY CLAYMATION CLAYMATION SERVED US WELL FOR A VERY LONG TIME MR VINTON SAYS BUT NOW WE HAVE SOMETHING NEW THAT WE DESIRE TO SHOW TO OTHER AD AGENCIES WE WERE LIMITED WITH WHAT WE COULD DO WITH CLAYMATION HE CONTINUES NOW WITH COMBINING THE THREE TECHNIQUES WE FEEL THE SKY IS THE LIMIT NEGOTIATIONS FOR AYER INC TO ACQUIRE HAL RINEY & PARTNERS INC SAN FRANCISCO HAVE BEEN ABANDONED FOR THE TIME BEING AYER SAID LATE YESTERDAY ONE INDUSTRY EXECUTIVE SAID HOWEVER THE TALKS WHICH BEGAN IN OCTOBER WEREN'T LIKELY TO EVER RESUME IN A STATEMENT HAL RINEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SOME DIFFERENCES AROSE THAT WERE TECHNICAL IN NATURE AS OPPOSED TO PHILOSOPHICAL MR RINEY DECLINED TO COMMENT BEYOND HIS PREPARED STATEMENT HOWEVER AN OFFICIAL AT RINEY WHO DIDN'T WANT TO BE QUOTED BY NAME SAID IT WASN'T A MUTUAL DECISION THIS AGENCY DECIDED NOT TO PROCEED WITH THE MERGER ABOUT A WEEK AGO IN AN INTERVIEW IN DECEMBER MR RINEY PUT THE ODDS OF THE DEAL GOING THROUGH AT 5050 ACCORDING TO AN INDIVIDUAL WITH KNOWLEDGE OF THE DISCUSSIONS MR RINEY WAS SCHEDULED TO SIGN DOCUMENTS THIS WEEK THAT WOULD HAVE CREATED THE AYER RINEY AGENCY THIS WAS AN 11THHOUR PULLOUT SAID THE INDIVIDUAL WHO DIDN'T WANT TO BE IDENTIFIED IT WAS A DONE DEAL AS OF MONDAY AFTERNOON IN THE NEW AGENCY MR RINEY WOULD HAVE BEEN COCHAIRMAN WITH AYER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JERRY J SIANO 58 YEARS OLD ALTHOUGH DETAILS OF THE CONTRACT COULDN'T BE DETERMINED THE SECOND INDIVIDUAL SAID IT CALLED FOR MR RINEY 62 TO REMAIN WITH THE AGENCY FOR AT LEAST TWO YEARS AND BE HEAVILY INVOLVED WITH THE CLIENTS THIS ISN'T THE FIRST TIME THAT AYER TRIED AN AGENCY MARRIAGE IN 1992 IT HELD PROLONGED DISCUSSIONS WITH KETCHUM COMMUNICATIONS INC IN PITTSBURGH THOSE TALKS COLLAPSED LAST JANUARY BECAUSE OF PHILOSOPHICAL DIFFERENCES ON HOW THE COMBINED AGENCIES WOULD OPERATE MR SIANO WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT IN A STATEMENT HE SAID HE WAS SORRY IT DIDN'T WORK OUT I WISH MR RINEY AND HIS AGENCY WELL COCACOLA CO AND THE NATIONAL BASKETBALL ASSOCIATION HAVE REACHED A FIVEYEAR AGREEMENT FOR THE SOFTDRINK GIANT TO BE A MAJOR GLOBAL SPONSOR OF THE LEAGUE THE PARTNERSHIP INVOLVING AN ESTIMATED 300 MILLION COMMITMENT ON COKE'S PART WILL BE LAUNCHED WITH A 30SECOND TV AD ON THE NBA'S ALLSTAR GAME ON SUNDAY THE SPOT PART OF A NEW FLIGHT OF ADS FROM CREATIVE ARTISTS AGENCY FEATURES ANIMATED UNIFORMS OF SEVEN NBA STARS PLAYING A FRENETIC GAME THE SPONSORSHIP IS COKE'S FIRST INTEGRATED MARKETING EFFORT ON SUCH A LARGE SCALE WITH A PRO SPORTS LEAGUE THE NBA'S DEMOGRAPHICS MATCH OUR TARGET VERY WELL SAID M DOUGLAS IVESTER COKE'S EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER COCACOLA HAS OTHER GLOBAL SPORTSMARKETING TIEINS INCLUDING SPONSORSHIPS OF THE OLYMPIC GAMES AND WORLD CUP SOCCER BUT MR IVESTER SAID THE NBA DELIVERS A YOUNGER AUDIENCE THAN THE OLYMPICSIN THE 12 TO 29YEAROLD RANGEAND A BIGGER US PRESENCE THAN THE WORLD CUP NBA GAMES ALSO ARE TELEVISED IN MORE THAN 100 COUNTRIES PORSCHE CARS NORTH AMERICA IS ENDING A FIVEYEAR ABSENCE FROM TELEVISION ADVERTISING WITH A CAMPAIGN FROM AD AGENCY GOODBY BERLIN & SILVERSTEIN A SAN FRANCISCO UNIT OF OMNICOM GROUP PORSCHE IS MOUNTING A 20 MILLION ADVERTISING AND MARKETING CAMPAIGN THIS YEAR TO REVIVE THE PORSCHE NAME IN THE US AND INTRODUCE A NEW MODEL THE 911 CARRERA PORSCHE'S US SALES LAST YEAR WERE LESS THAN 4000 DOWN FROM A HIGH OF 30000 IN 1986 THE SPOTS PROFILE ACTUAL EMPLOYEES OF THE PORSCHE FACTORY IN STUTTGARTZUFFENHAUSEN GERMANY AND TOUT THE QUALITY OF THE CARS 9402090105 940209 POLITICS & POLICY CAPITAL JOURNAL GERALD F SEIB REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR LIKES TO CALL CALIFORNIA AMERICA'S WIND TUNNEL MEANING IT IS USUALLY TESTING OUT TRENDS THE REST OF US WILL BE PICKING UP LATER SO AT THE BEGINNING OF AN ELECTION YEAR IN WHICH A STAGGERING 100 MILLION IS LIKELY TO BE SPENT ON CAMPAIGNS IN CALIFORNIA IT'S WORTH ASKING WHAT'S THE POLITICAL ZEITGEIST IN THE GOLDEN STATE THE ANSWER IS INTRIGUING WHEN A VISITOR TO CALIFORNIA CAN LOOK PAST THE EARTHQUAKES AND MUD SLIDES WHAT HE SEES IS A STRIKING NEW KIND OF POLITICAL PRAGMATISM EMERGING OLD IDEOLOGIES AND PARTY LABELS ARE BLURRING AND A NEW BALANCE BETWEEN THE ROLES OF BUSINESS AND GOVERNMENT IS DEVELOPING THIS JUST MAY BE THE PRECURSOR OF A NATIONAL TREND WHEN REPUBLICAN RESEARCHERS CHRISTINE MATTHEWS AND BILL MCINTURFF RECENTLY TRIED TO FORECAST PUBLIC OPINION TRENDS FOR THE REST OF THE 1990S ONE OF THE CENTRAL THEMES THEY PREDICTED WAS A REJECTION OF PARTISAN AND IDEOLOGICAL LABELING IN CALIFORNIA THAT'S HAPPENING BECAUSE EVERYBODY IS HAVING TO RETHINK OLD VERITIES ON THE FLY THANKS TO THE STATE'S REMARKABLE RUN OF TRAGEDIES EARTHQUAKES RIOTS RECESSION LOSS OF 415000 DEFENSERELATED JOBS CALIFORNIANS ARE CRANKY AND MORE THAN READY TO TAKE IT OUT ON THEIR POLITICIANS AND AS DR JOHNSON NOTED THERE'S NOTHING LIKE THE PROSPECT OF A GOOD HANGING TO FOCUS THE MIND SO POLITICIANS ARE ON A SOBER SEARCH FOR NONIDEOLOGICAL SOLUTIONS THAT HAS PROMPTED DEMOCRATS TO MOVE TOWARD REPUBLICAN THINKING ON CRIME IMMIGRATION AND ECONOMICS WHILE REPUBLICANS HAVE MOVED TOWARD DEMOCRATIC THINKING ON GOVERNMENT ACTIVISM THIS PROCESS IS BEST PERSONIFIED BY THE STATE'S REPUBLICAN GOVERNOR PETE WILSON AND HIS MOST LIKELY DEMOCRATIC OPPONENT THIS FALL STATE TREASURER KATHLEEN BROWN GOV WILSON IS ALMOST IMPOSSIBLE TO TYPECAST IS HE A CONSERVATIVE WELL YES BUT NOT NEARLY ENOUGH FOR HIS OWN PARTY'S RIGHT WING WHICH SNEERS AT HIM FOR SUPPORTING ABORTION RIGHTS OPPOSING A STATE INITIATIVE ON SCHOOL CHOICE AND CHAMPIONING A 7 BILLION TAX INCREASE IN HIS FIRST YEAR IN OFFICE HE TALKS OF PREVENTIVE GOVERNMENT EMPHASIZING SUCH SERVICES AS WIDESPREAD PRENATAL CARE SO IS HE A PROGRESSIVE WELL YES BUT NOT NEARLY ENOUGH FOR THE STATE'S DEMOCRATS WHO FOUGHT HIM SO BITTERLY OVER SPENDING CUTS THAT CALIFORNIA VIRTUALLY SHUT DOWN FOR THE SUMMER OF 1992 AND PAID ITS BILLS WITH IOUS DURING A BLOODY BUDGET DEBATE THEY SAY PREVENTIVE GOVERNMENT HAS WASHED UP ON THE ROCKS OF DRACONIAN BUDGET CUTS AND GOV WILSON HITS ALL THE CONSERVATIVE HOT BUTTONS ON CRIME AND IMMIGRATION YET IN THE LAST YEAR GOV WILSON AND THE DEMOCRATS CAME TOGETHER TO PASS A STRIKINGLY BUSINESSFRIENDLY ECONOMIC PACKAGE DESIGNED TO BREATHE LIFE BACK INTO THE STATE'S SAGGING BUSINESS SECTOR IT INCLUDES AN OVERHAUL OF THE WORKERS' COMPENSATION LAW A SALES TAX CREDIT FOR PURCHASE OF MANUFACTURING EQUIPMENT A CAPITAL GAINS TAX BREAK FOR INVESTMENTS IN SMALL BUSINESSES AND TAX RELIEF FOR STARTUP BUSINESSES MORE SUCH IDEAS ARE IN THE WILSON HOPPER NOW COMES MS BROWN DAUGHTER AND SISTER OF CALIFORNIA'S LAST TWO DEMOCRATIC GOVERNORS SEEKING TO TAKE GOV WILSON'S SEAT IN DOING SO SHE HAS MOVED WELL TO THE RIGHT OF MANY DEMOCRATS ON IMMIGRATION AND CRIME GOV WILSON'S TWO HOTBUTTON ISSUES SHE'S IN FAVOR OF MANDATORY SENTENCES FOR FIRSTTIME DRUG OFFENDERS CURFEWS FOR TEENS AND LIFE SENTENCES FOR THREETIME FELONS SHE PROMISES TO CARRY OUT EXECUTIONS DESPITE PERSONAL MISGIVINGS ABOUT THE DEATH PENALTY TO CURB ILLEGAL IMMIGRATION SHE WANTS TO USE THE MILITARY TO SHORE UP THE BORDER PATROL AND TO REQUIRE ALL EMPLOYEES TO CARRY A TAMPERPROOF SOCIAL SECURITY CARD TO PROVE LEGAL STATUS MORE SIGNIFICANTLY SHE HAS JUST LAID OUT HER ECONOMIC PHILOSOPHY IN A SPEECH THAT AS ONE DEMOCRAT GRUMBLES GOV WILSON COULD HAVE GIVEN IT CALLS FOR A TAX MORATORIUM FOR NEW BUSINESSES A TAX CREDIT FOR JOB CREATION SIMPLIFICATION OF THE REGULATORY STRUCTURE AND CREATION OF A NEW BUSINESS CAPITAL FUND INTRIGUINGLY MS BROWN HAS ECHOED GOV WILSON IN OPPOSING AN INSTANT TAX INCREASE TO COVER THE COST OF THE LOS ANGELES EARTHQUAKE THIS HARDLY MEANS THAT DEMOCRATS AND REPUBLICANS AGREE ON EVERYTHING INSURANCE COMMISSIONER JOHN GARAMENDI THE OTHER DEMOCRATIC GUBERNATORIAL CANDIDATE HAS AN ECLECTIC POPULIST MESSAGE ALL HIS OWN AND HE DOES CALL FOR AN EARTHQUAKE TAX BOOST AND THERE'S PLENTY ON WHICH GOV WILSON AND MS BROWN DISAGREE HE HINTS AT DENYING ILLEGAL IMMIGRANTS MEDICAL AND EDUCATION SERVICES SHE IS PASSIONATELY OPPOSED SHE DIDN'T BACK THE NORTH AMERICAN FREE TRADE AGREEMENT HE DID BUT THE POINT IS THAT IT'S GETTING HARDER TO PREDICT WHERE CALIFORNIA'S POLITICAL LEADERS WILL COME DOWN ON ANY PARTICULAR ISSUE THE OLD STEREOTYPES ARE DYING IN CALIFORNIA AND THAT'S HEALTHY FOR A TROUBLED STATE AND THE NATION THAT MAY FOLLOW IN ITS FOOTSTEPS AGAIN 9402090104 940209 MANAGING YOUR CAREER BY JOANN S LUBLIN YOU GET A GREAT JOB OFFER A GREAT NEW BOSS A GREAT NEW COMPANY WHAT'S WRONG WITH THIS PICTURE YOU LACK A WRITTEN EMPLOYMENT AGREEMENT IN AN ERA OF RAMPANT JOB INSECURITY MORE MANAGERS ARE SEEKING THESE PACTS TO REDUCE THE DANGERS INVOLVED IN SWITCHING COMPANIES SOME ACCORDS NOW GO FAR BEYOND THE USUAL SWEETENED SEVERANCE PACKAGE OFFERING EXTENDED MEDICAL BENEFITS OR A GUARANTEE TO MOVE YOU BACK IF YOU RELOCATE FOR EXAMPLE BUT WATCH OUT EMPLOYERS ARE DEMANDING TOUGHER TRADEOFFS IN RETURN THESE PACTS ARE WRITTEN UNDERSTANDINGS OUTLINING YOUR EMPLOYMENT CONDITIONS INCLUDING COMPENSATION BENEFITS AND ANY SEVERANCE AGREEMENT AND YOUR EMPLOYER'S EXPECTATIONS THEY SHOULD CONTAIN LANGUAGE SAYING THE ACCORD IS BINDING BETWEEN 20 AND 25 OF MIDDLE MANAGERS NOW GET THE PACTS USUALLY LESS FORMAL THAN FULLBLOWN CONTRACTS WHEN THEY CHANGE EMPLOYERS UP FROM 5 OR LESS FIVE YEARS AGO ESTIMATES PEARL MEYER A NEW YORK COMPENSATION CONSULTANT JOBHOPPING SHE SAYS ENTAILS A MUCH HIGHER RISK THAN IN PRIOR YEARS A SIMPLE OFFER LETTER MAY NOT SUFFICE IN JULY 1992 SWEET LIFE FOODS IN SUFFIELD CONN WROTE ARNOLD MARGOLIS CONFIRMING HIS SELECTION AS THE 72500AYEAR DIRECTOR OF HEALTH AND BEAUTY AIDS FOR THE WHOLESALE DISTRIBUTOR OF FOOD PRODUCTS MR MARGOLIS THEN 44 YEARS OLD SAYS HE GAVE UP A MARKETING DIRECTOR'S JOB IN ROCHESTER NY AND MOVED TO CONNECTICUT BUT SWEET LIFE INEXPLICABLY WITHDREW ITS OFFER A FEW DAYS BEFORE HE WAS SUPPOSED TO START WORK IN AUGUST HE CONTENDS I THOUGHT I HAD PROTECTED MYSELF I WAS TOTALLY LEFT HOLDING THE BAG COMPLAINS MR MARGOLIS NOW A CONSULTANT I HAVEN'T BEEN ABLE TO FIND A POSITION IN MY CHOSEN PROFESSION HE HAS SUED THE COMPANY FOR BREACH OF CONTRACT SWEET LIFE DECLINES TO COMMENT SEVERAL FACTORS MAY INFLUENCE WHETHER YOU CAN OBTAIN A DETAILED EMPLOYMENT AGREEMENT FOR POSTS BELOW THE HIGHEST RUNGS CAREER SPECIALISTS SAY OBVIOUSLY THE SCARCER YOUR SKILLS AND THE MORE YOU ARE IN DEMAND THE BETTER A LARGE MANUFACTURER RECENTLY ATTRACTED A 100000AYEAR FINANCE EXECUTIVE BY AGREEING THAT IF THINGS DON'T WORK OUT THE COMPANY WILL MAINTAIN HIS MEDICAL BENEFITS UNTIL HE FINDS AN EMPLOYER OFFERING THE SAME COVERAGE SUCH AN OPENENDED COMMITMENT IS UNUSUAL BUT THEY WANTED THE GUY A LOT EXPLAINS HAROLD JOHNSON A MANAGING DIRECTOR OF RECRUITERS NORMAN BROADBENT INTERNATIONAL IN NEW YORK THE PROMISE OF CONTINUED COVERAGE EXPIRES AFTER HE'S WORKED THERE FOR TWO YEARS MOVING LONG DISTANCES FOR A JOB ALSO MAY STRENGTHEN YOUR CHANCES OF NEGOTIATING A GENEROUS EMPLOYMENT ACCORD MANY TRANSFERRED MANAGERS SEEK A PLEDGE THAT AN EMPLOYER WILL MOVE THEM BACK AT COMPANY EXPENSE IF THEY LOSE THEIR POSITIONS AN OPERATOR OF STEEL FOUNDRIES HIRED A CHICAGO MAN TO BE A SENIOR MANAGER IN AN IOWA TOWN OF 13000 PEOPLE I COULDN'T AFFORD TO BE STUCK HERE HE REMEMBERS IT'S PRETTY HARD TO GET A JOB IN A TOWN THIS SIZE AT HIS INSISTENCE THE COMPANY GAVE HIM A WRITTEN GUARANTEE THAT IF THE JOB ENDED I WOULD BE MOVED BACK TO CHICAGO THE 44YEAROLD MANAGER QUIT LAST SEPTEMBER THREE YEARS AFTER MOVING BUT HE DECIDED NOT TO USE HIS RETURN GUARANTEE THE MAN NOW A GENERAL MANAGER FOR A LOCAL TRUCKING COMPANY MET A WOMAN IN TOWN AND THEY PLAN TO MARRY NEXT YEAR IN ADDITION YOU CAN REASONABLY DEMAND AN EMPLOYMENT AGREEMENT WHEN YOU JOIN A FINANCIALLY RISKY SITUATION NOWADAYS A CHIEF EXECUTIVE ENLISTED TO REVIVE AN AILING BUSINESS COMMONLY INSISTS ON A LETTER OF CREDIT OR ESCROW ACCOUNT TO SAFEGUARD SEVERANCE PAY AGAINST A POSSIBLE BANKRUPTCY THESE CEOS OFTEN GET SIMILAR THOUGH USUALLY MORE MODEST DEALS FOR OTHER MEMBERS OF THEIR MANAGEMENT TEAMS RECRUITERS AND INVESTMENT BANKERS SAY THERE IS A FINITE AMOUNT OF TALENT TO FIX BIG PROBLEMS IN COMPANIES NOTES RAY HIPP 51 FORMER EXECUTIVE VICE PRESIDENT OF COMDISCO A HIGHTECHNOLOGY EQUIPMENT LESSOR IN ROSEMONT ILL IN JANUARY HE REJECTED AN OFFER TO TURN AROUND A DATAPROCESSING COMPANY BECAUSE HE BELIEVED HE COULDN'T FIX IT BUT MR HIPP BELIEVES HE COULD HAVE WON AN AGREEMENT FOR TWO YEARS OF SEVERANCE PAY IF HE LEFT BY MUTUAL CONSENT DURING THE FIRST SIX MONTHS WHEN YOU ARE GOING INTO SOMETHING THAT UNCERTAIN HE SAYS YOU NEED SOME DEGREE OF ASSURANCE AND NOT JUST FOR TAKING THE TOP JOB A COMPANY MAY EXACT ONEROUS TRADEOFFS FOR SUCH ASSURANCES HOWEVER SUCH AS ADVANCE NOTICE OF RESIGNATION OR LESS PROTECTION AGAINST FIRING WITHOUT CAUSE AS HIGH TECHNOLOGY SIMPLIFIES THE THEFT OF CORPORATE SECRETS BUSINESSES HAVE BEGUN TO TIGHTEN NONCOMPETE CLAUSES IN EMPLOYMENT ACCORDS SOME BAR YOU FROM WORKING FOR A LENGTHY LIST OF COMPETITORS DURING A SET PERIOD THESE CLAUSES ARE SOMETIMES CONTESTED IN COURT BUT YOU MAY BE ABLE TO OVERCOME THEM WITHOUT CALLING IN THE LAWYERS ONE MARKETING VICE PRESIDENT RECEIVED AN OFFER FROM A RIVAL SOFTWARESYSTEMS MAKER LISTED IN HIS AGREEMENT'S NONCOMPETE CLAUSE HE PERSUADED HIS OLD BOSS TO REMOVE THE RESTRICTION BY SWEARING THAT HE WASN'T GOING TO DO THE SAME THING IN THE NEW POSITION SAYS ALAN GLOU PRESIDENT OF GLOU INTERNATIONAL A SEARCH FIRM IN NEEDHAM MASS SO THE VICE PRESIDENT JOBHOPPED AND POCKETED MORE THAN 250000 OF SEVERANCE PAY 9402090103 940209 ABREAST OF THE MARKET INDUSTRIALS SLIP A BIT AS INVESTORS KEEP WARY EYE ON BOND ACTION BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS CREPT MOSTLY LOWER AS NERVOUS INVESTORS WATCHED BOND PRICES SLIDE A MOVE BY THE FEDERAL RESERVE LAST FRIDAY TO TIGHTEN CREDIT CONDITIONS HAS LEFT INVESTORS SHARPLY FOCUSED ON THE ACTION IN BONDS AND MARKET INTEREST RATES THEY DIDN'T LIKE WHAT THEY SAW YESTERDAY ANALYSTS SAID THE 30YEAR TREASURY BOND LOST MORE THAN 3/4 POINT LIFTING ITS YIELD TO 645 BOND INVESTORS WERE SAID TO BE WORRIED ABOUT THE TREASURY'S QUARTERLY REFUNDING AUCTIONS WHICH GOT UNDER WAY YESTERDAY WITH THE SALE OF THREEYEAR NOTES AND ABOUT A GOVERNMENT INFLATION REPORT DUE ON FRIDAY THE STOCKMARKET LOSSES WERE MUCH LESS SEVERE THE DOW JONES INDUSTRIAL AVERAGE LOST A SCANT 029 TO 390603 BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES ALSO EASED ADVANCING ISSUES ON THE BIG BOARD OUTNUMBERED DECLINERS ABOUT 1172 TO 962 VOLUME WAS 318040000 SHARES DOWN FROM 346780000 ON MONDAY THE DOW JONES INDUSTRIALS NEVER MOVED MORE THAN 15 POINTS HIGHER OR LOWER THAN THEIR CLOSING LEVEL OF MONDAY WHEN THEY CLOSED WITH A GAIN OF 3490 ON FRIDAY THEY PLUMMETED 9624 THE STANDARD & POOR'S 500 STOCK INDEX SLIPPED 071 OR 015 TO 47105 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 005 OR 002 TO 26196 AND THE DOW JONES EQUITY MARKET INDEX LOST 059 OR 013 TO 44585 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS ALSO HIGHER UP 084 OR 018 TO 47768 BREAKING A THREESESSION LOSING STREAK ECONOMICALLY SENSITIVE STOCKS STRONG ALL YEAR AND THE LEADERS IN MONDAY'S RALLY GAINED GROUND AGAIN CATERPILLAR ROSE 2 3/4 TO 108 GENERAL MOTORS ADVANCED 1 3/4 TO 64 3/4 GOODYEAR TIRE ADDED 1 1/8 TO 47 1/2 AND MINNESOTA MINING & MANUFACTURING JUMPED 1 TO 105 7/8 UTILITIES AND BANKS WERE WEAK IN TANDEM WITH THE BOND MARKET CHASE MANHATTAN SLIPPED 1/2 TO 33 1/4 NATIONSBANK WAS DOWN 7/8 TO 48 1/2 AND MIDLANTIC NASDAQ LOST 3/8 TO 26 7/8 THE DOW JONES UTILITIES AVERAGE DROPPED 132 OR 060 TO 21803 SEARS ROEBUCK TUMBLED 3 1/4 TO 47 3/4 EVEN THOUGH THE CHICAGO RETAILER REPORTED A FOURTHQUARTER PROFIT OF 139 A SHARE REVERSING A YEAREARLIER LOSS THE EARNINGS HOWEVER WERE BELOW THE 149 MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM ALLIEDSIGNAL CLIMBED 1 1/2 TO 77 3/8 AFTER THE MORRISTOWN NJ AVIATION AND AUTOMOBILE COMPONENTS MAKER SAID ITS FOURTHQUARTER EARNINGS JUMPED TO 125 A SHARE FROM 98 CENTS A YEAR EARLIER SEPARATELY THE COMPANY DECLARED A 2FOR1 STOCK SPLIT AND SAID IT WILL INCREASE ITS DIVIDEND PFIZER DROPPED 2 1/4 TO 59 3/8 AFTER THE COMPANY SAID SOME FORECASTS OF ITS 1994 EARNINGS COULD BE TOO HIGH THE NEW YORK DRUG MAKER SAID IT IS COMFORTABLE WITH ANALYSTS' PROJECTIONS OF BETWEEN 410 AND 425 A SHARE FOR THIS YEAR BUT SAID A FORECAST AT THE TOP OF THE RANGE MAY BE SOMEWHAT OPTIMISTIC SHARES OF SEMICONDUCTOR PRODUCERS RALLIED ON OPTIMISM ABOUT THE LEVEL OF BUSINESS IN THE INDUSTRY MOTOROLA ADDED 4 TO 100 1/4 TEXAS INSTRUMENTS GAINED 1 7/8 TO 73 7/8 NATIONAL SEMICONDUCTOR WAS UP 1 1/2 TO 19 1/8 AND ADVANCED MICRO DEVICES ROSE 1 5/8 TO 22 ITT JUMPED 2 TO 99 5/8 THE COMPANY WAS SAID TO BE THE WINNING BIDDER FOR ITALY'S CIGA SPA A LUXURY HOTEL CHAIN WITH AN OFFER OF BETWEEN 500 MILLION AND 550 MILLION A SPOKESMAN FOR NEW YORKBASED ITT DECLINED COMMENT ON THE TALK KROGER ADDED 2 3/8 TO 23 3/8 EXCLUDING CHARGES THE CINCINNATI SUPERMARKET OPERATOR REPORTED FOURTHQUARTER EARNINGS OF 79 CENTS A SHARE UP FROM 74 CENTS A YEAR EARLIER SHARES OF SAFEWAY ANOTHER SUPERMARKET COMPANY JUMPED 1 1/4 TO 21 3/8 WITHOUT RESTRUCTURING CHARGES THE OAKLAND CALIF CONCERN HAD FOURTHQUARTER PROFIT OF 45 CENTS A SHARE UP FROM 31 CENTS A YEAR EARLIER ALUMINUM CO OF AMERICA ADDED 1 1/4 TO 79 3/8 AFTER RALLYING 2 MONDAY THE PITTSBURGH COMPANY SAID IT WILL SLASH 100000 METRIC TONS OF ANNUAL ALUMINUM PRODUCTION OR ABOUT 8 OF ITS DOMESTIC CAPACITY FINGERHUT COS INCREASED 2 3/8 TO 28 7/8 THE MINNETONKA MINN COMPANY AGREED TO JOINTLY DEVELOP HOMESHOPPING PROGRAMMING WITH CABLETELEVISION OPERATOR MTV NETWORKS A VIACOM UNIT YOU'VE GOT SOMETHING OF A BATTLE GOING ON BETWEEN THOSE WHO ARE LOOKING TO LOCK IN RECENT PROFITS AND THOSE LOOKING FOR BARGAINS AFTER FRIDAY'S DECLINE SAID GAIL DUDACK MARKET STRATEGIST AT SG WARBURG & CO THE NET EFFECT OF THAT ACTION WAS LITTLE CHANGE IN STOCK PRICES DESPITE THE MIXED TONE YESTERDAY MS DUDACK SAID SHE IS CONCERNED THAT STOCKS COULD TUMBLE OVER THE NEXT SIX WEEKS A MOVE ABOVE 65 IN THE 30YEAR BOND YIELD COMBINED WITH SIGNS THAT THE FLOW OF MONEY INTO MUTUAL FUNDS IS EASING COULD SEND THE DOW JONES INDUSTRIAL AVERAGE BACK TO THE 3600 LEVEL SHE SAID BUT PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS SAID THE WORRIES ABOUT INTEREST RATES ARE UNWARRANTED HE DOESN'T THINK THE FEDERAL RESERVE'S MOVE ON FRIDAY WAS LARGE ENOUGH TO STANCH THE FLOW OF CASH INTO FUNDS AND HE EXPECTS THE MARKET TO RESUME ITS CLIMB AS SOON AS NEXT WEEK 9402090102 940209 CREDIT CARDS A CHARGE CARD THAT BUYS A CHEAP MEAL AND A LOOPHOLE BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL SOME PEOPLE MAY SEE THE TRANSMEDIA EXECUTIVE SAVINGS CARD AS AN UNOFFICIAL INVITATION TO BEND THE RULES FOR AN ANNUAL FEE OF 50 THESE CHARGE CARDS DISTRIBUTED MOSTLY IN THE NEW YORK CITY AREA OFFER HOLDERS 25 DISCOUNTS ON MEALS AT MORE THAN 1000 RESTAURANTS BUT FOR THOSE WILLING TO TAKE A CHANCE WITH THEIR EMPLOYERS OR THE INTERNAL REVENUE SERVICE THERE'S ANOTHER ADVANTAGE THE RESTAURANT RECEIPT WHICH IS COMMONLY SUBMITTED TO SUPPORT EXPENSE ACCOUNT CLAIMS OR TAX DEDUCTIONS SHOWS THE FULL RETAIL PRICE OF THE MEAL THE REAL BILL THE ONE THAT REFLECTS THE 25 DISCOUNT COMES LATER TO THE CARD HOLDER'S HOME AS PART OF HIS OR HER REGULAR MONTHLY CREDIT CARD STATEMENT WE MAKE NO BONES ABOUT IT YOU COULD BE REIMBURSED FOR MORE THAN YOU PAID SAYS MELVIN CHASEN CHAIRMAN OF TRANSMEDIA NETWORK INC THE FLORIDABASED COMPANY THAT OFFERS THE CARDS MR CHASEN SAYS HE ISN'T ADVOCATING EXPENSEACCOUNT FRAUD THAT'S BETWEEN YOU AND YOUR COMPANY HE SAYS I WOULD PERSONALLY BE HESITANT ABOUT DOING IT UNLESS THE COMPANY DOESN'T CARE BESIDES HE ARGUES SOME SAY THE DISCOUNT IS SIMILAR TO FREQUENT FLYER MILES THAT MANY TRAVELING BUSINESS PEOPLE GET TO KEEP EVEN THOUGH THEIR COMPANIES PAID FOR THE TICKET THE OTHER SCHOOL OF THOUGHT HE CONCEDES IS THAT IT'S CHEATING TRANSMEDIA NETWORK MAKES ITS MONEY BY ACTING LIKE A BANK FOR RESTAURANTS IT ADVANCES THEM MONEY NOW IN EXCHANGE FOR DOUBLE THAT AMOUNT IN FOOD AND DRINK CREDITS LATER TRANSMEDIA IN TURN PASSES ALONG HALF OF THE DISCOUNT 25 OFF THE MENU PRICES TO CARD MEMBERS AND EARNS A PROFIT FROM THE REMAINDER ALTHOUGH RESTAURANTS SEEM TO BE GETTING THE SHORT END OF THE STICK A SURPRISING NUMBER OF THEM OF ALL TYPES HAVE SIGNED UP WITH TRANSMEDIA RESTAURATEURS SAY THEY GET A NEEDED INFLUX OF MONEY AND CUSTOMERS FROM THE DEAL IF ALL GOES ACCORDING TO PLAN TRANSMEDIA MAKES MONEY THE RESTAURANTS GET NEW BUSINESS AND THE CUSTOMERS GET A CHEAPER MEAL RECENTLY THE NEW YORK TIMES CO JOINED THE TRANSMEDIA PLAN OFFERING A COBRANDED TRANSMEDIA CARD CALLED THE TRANSMEDIA TIMESCARD TO SUBSCRIBERS WHO PREPAY A SIXMONTH SEVENDAYAWEEK SUBSCRIPTION AT THE UNDISCOUNTED PRICE THE NEWSPAPER'S AIM IS TO REDUCE OVERDUE SUBSCRIPTION PAYMENTS CUT DOWN ON SUBSCRIBER ATTRITION AND SUBSCRIPTION DISCOUNTING IN A LETTER TO SUBSCRIBERS CHARLES E SHELTON THE NEWSPAPER'S VICE PRESIDENT OF CIRCULATION TELLS POTENTIAL CARD MEMBERS WHAT'S IN IT FOR THEM JUST PRESENT YOUR TRANSMEDIA TIMESCARD WHEN YOU GET YOUR CHECK AS YOU WOULD ANY OTHER CHARGE CARD YOUR CHARGE SLIP DISCREETLY SHOWS FULL MENU PRICES AND ANY TAX JUST ADD YOUR NORMAL TIP AND SIGN LATER ON THE TOTAL APPEARS ON THE VISA MASTERCARD OR DISCOVER ACCOUNT YOU'VE PRESPECIFIED MINUS YOUR 25 CREDIT ON THE FOOD AND BEVERAGE PORTION OF YOUR BILL MR SHELTON COULDN'T BE REACHED FOR ELABORATION THERE CERTAINLY IS AN OPPORTUNITY FOR FRAUD USING THE TRANSMEDIA TIMESCARD ACKNOWLEDGES DANIEL COHEN THE TIMES'S GROUP DIRECTOR FOR PROMOTION BUT TIMES EMPLOYEES WHO USE THEIR OWN TRANSMEDIA TIMESCARDS OR REGULAR TRANSMEDIA CARDS FOR BUSINESS PURPOSES HAD BETTER BE ABOVE BOARD WHEN SUBMITTING EXPENSES OTHER COMPANIES HAVE GONE SO FAR AS TO FORBID THE USE OF PERSONAL CREDIT CARDS FOR BUSINESS EXPENSES THE INTERNAL REVENUE SERVICE HOWEVER IS A LITTLE MORE LAISSEZ FAIRE THE FACT THAT THE CARD MAY BE ABUSED DOESN'T GENERATE ABUSE SAYS AN IRS SPOKESMAN HE WARNS HOWEVER IF SOMEONE USED THE FACE AMOUNT RATHER THAN THE REAL TRANSACTION COST THAT COULD BE A PROBLEM RESTAURATEURS WHO ACCEPT THE CARD ARE UNDER NO ILLUSIONS ABOUT WHAT HAPPENS I SUSPECT THERE IS AN AWFUL LOT OF UNTRUTHFUL REPORTING SAYS JEANELLE MYERS THE MANAGER OF MANHATTAN'S BROOME STREET BAR & GRILL 9402090101 940209 INTERNATIONAL BANK OF ENGLAND CUTS ITS BASE RATE FOR LOANS TO 525 BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE BANK OF ENGLAND APPARENTLY SEEKING TO BOLSTER BUSINESS CONFIDENCE CUT ITS BASE LENDING RATE BY ONEFOURTH POINT TO 525 AMID PREDICTIONS THAT ANOTHER SMALL CUT MAY FOLLOW THE CENTRAL BANK SAID BETTERTHANEXPECTED INFLATION PROJECTIONS LED TO THE CUT SPEAKING AT A CONFERENCE IN PARIS BRITISH CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE INDICATED THAT A FURTHER CUT OF ONEFOURTH POINT MAY FOLLOW ASSERTING THAT THE GOVERNMENT IS SET ON A COURSE OF RESTRAINED INFLATION THE MOVE SEEMED TIMED TO GAIN POLITICAL MILEAGE FOR THE RULING CONSERVATIVE PARTY WHICH IS RAISING TAXES AND WANTS TO ENSURE THAT THE UK'S RECOVERY CONTINUES HOWEVER A ONEFOURTH POINT RATE CUT WILL PROVIDE LITTLE BENEFIT FOR CONSUMERS ECONOMISTS SAID IT MAY EVEN DEPRESS SAVINGS IF DEPOSITS ARE EARNING LESS INTEREST IT'S DIFFICULT TO SEE WHAT INSPIRED THIS CUT SAID PETER WARBURTON CHIEF ECONOMIST AT ROBERT FLEMING SECURITIES HOWEVER THE REDUCTION SHOULD MAKE IT EASIER FOR COMPANIES TO RAISE CAPITAL MR WARBURTON ADDED AND PROVIDES BUSINESSES A PSYCHOLOGICAL BOOST STILL LONDON STOCKS REACTED LITTLE IF AT ALL TO THE RATE CUT THE BANK'S DECISION ALSO SENT A SIGNAL TO INTERNATIONAL INVESTORS THAT THE UK'S RATES AREN'T GOING TO FOLLOW THOSE IN THE US WHERE THE FEDERAL RESERVE BANK INCREASED THE FEDERALFUNDS RATE BY ONEFOURTH POINT TO 325 LAST WEEK ROILING WORLD MARKETS THE LAST BRITISH CUT WAS IN NOVEMBER WHEN THE BASE RATE WAS LOWERED TO 55 FROM 6 DESPITE MR CLARKE'S OPTIMISM ECONOMISTS TAKE A DIMMER VIEW OF THE RECOVERY'S STRENGTH CERTAIN INDICATORS INCLUDING MONETARY GROWTH SIGNAL THAT THE RECOVERY IS SLOWING AND THAT INFLATION IS AS LIKELY TO RISE AS TO DECLINE IN COMING MONTHS ACCORDING TO CHRIS DILLOW AN ECONOMIST AT NOMURA RESEARCH INSTITUTE HERE MR DILLOW SAID HE BELIEVES THE TAX INCREASES PLANNED FOR APRIL WILL HURT THE RECOVERY THE GOVERNMENT INSISTS THEY WON'T ASSERTING INCOMES WILL RISE AS THE ECONOMY STRENGTHENS BRITAIN'S OVERALL INFLATION RATE IN DECEMBER WAS 19 WITH AN UNDERLYING RATE OF 27 AFTER TAKING OUT THE EFFECT OF LOWER MORTGAGEINTEREST PAYMENTS AT A NEWS CONFERENCE BANK OF ENGLAND OFFICIALS PROJECTED INFLATION WOULD STABILIZE AT 2 TO 3 AFTER THE FIRST HALF OF THIS YEAR EXCLUDING MORTGAGEINTEREST PAYMENTS AND THE IMPACT OF HIGHER INDIRECT TAXES ECONOMISTS SEE A MUCH GLOOMIER INFLATION PICTURE MR DILLOW SAYS UNDERLYING INFLATION EXCLUDING MORTGAGE PAYMENTS COULD GROW TO ABOUT 45 BY YEAR'S END MR WARBURTON SEES INFLATION HOVERING AROUND 325 BY YEAR'S END AND EXPECTS GENERAL ECONOMIC GROWTH OF ONLY 18 COMPARED WITH THE GOVERNMENT'S PROJECTION OF 25 ONE COULD ARGUE THAT THIS RATE CUT SHOULD HAVE BEEN DEEPER AND COME MUCH SOONER MR WARBURTON SAID 9402090100 940209 MARKETING & MEDIA CANADA ROLLS BACK TOBACCO TAXES IMPOSES SURTAX IN BID TO END SMUGGLING BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT IN A BID TO STAMP OUT RAMPANT CIGARETTE SMUGGLING ROLLED BACK TOBACCO TAXES AND IMPOSED A SURTAX ON TOBACCO MANUFACTURERS' PROFITS THE TAX CUT WAS OPPOSED BY ANTISMOKING GROUPS THAT HAVE URGED THE GOVERNMENT TO HOLD OFF ON TAX MOVES UNTIL THE US CONGRESS VOTES ON THE CLINTON ADMINISTRATION'S PROPOSED 75CENT TAX INCREASE IN CIGARETTE PRICES HIGHER US CIGARETTE TAXES WOULD MAKE SMUGGLING LESS PROFITABLE CIGARETTE SMUGGLING HAS SURGED RECENTLY BECAUSE OF THE HEAVY CANADIAN TAXES THE TOBACCO INDUSTRY ESTIMATED THAT ABOUT 30 OF ALL CIGARETTES SMOKED IN CANADA ARE SMUGGLED THE CONTRABAND MARKET IS ESTIMATED TO BE AS HIGH AS 65 IN QUEBEC THE CANADIAN GOVERNMENT SAID EFFECTIVE IMMEDIATELY IT WILL REDUCE FEDERAL TOBACCO TAXES BY FIVE CANADIAN DOLLARS US372 ON A CARTON OF 200 CIGARETTES AND MATCH ANY REDUCTION IN PROVINCIAL TAXES BY AS MUCH AS C10 A CARTON THE COMBINED REDUCTIONS WOULD LOWER CIGARETTE PRICES TO AS LOW AS C23 A CARTON FROM ABOUT C47 ILLEGAL CIGARETTES NOW SELL FOR ABOUT C20 TO C22 A CARTON ONLY QUEBEC AND NEW BRUNSWICK PROVINCES SAID THEY WILL PROCEED WITH PROVINCIAL TOBACCO TAX REDUCTIONS ONTARIO SAID IT ISN'T PLANNING ANY IMMEDIATE ACTION THE FEDERAL GOVERNMENT SAID ITS SURTAX ON TOBACCO MAKERS' PROFITS WILL INCREASE THE FEDERAL TAX RATE PAID BY CIGARETTE MAKERS TO 30 FROM 21 FOR THREE YEARS THE RISE IS EXPECTED TO GENERATE ABOUT C200 MILLION IN REVENUE THAT WILL BE USED TO FUND AN ANTISMOKING CAMPAIGN QUEBEC ALSO INTRODUCED A 50 SURTAX ON PROVINCIAL INCOME TAX PAID BY TOBACCO MAKERS JACQUES KAVAFIAN AN ANALYST AT MONTREAL SECURITIES FIRM LEVESQUE BEAUBIEN GEOFFRION INC ESTIMATED THE NEW LEVIES WOULD REDUCE IMASCO LTD'S 1994 EARNINGS TO C350 A SHARE FROM A PROJECTED C4 IMASCO CONTROLS IMPERIAL TOBACCO LTD CANADA'S LARGEST CIGARETTE MANUFACTURER THE OTHER MAJOR CANADIAN TOBACCO COMPANIES ARE RJRMACDONALD INC A SUBSIDIARY OF RJR NABISCO HOLDINGS CORP AND ROTHMANS BENSON & HEDGES INC WHICH IS JOINTLY OWNED BY ROTHMANS INC AND PHILIP MORRIS COS IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY IMASCO FELL C250 TO C3975 AND ROTHMANS FELL C2 TO C98 THE CANADIAN GOVERNMENT SAID IT ALSO INTENDS TO IMPOSE AN C8 A CARTON EXPORT TAX ON SHIPMENTS OF CANADIAN CIGARETTES TO THE US IN ORDER TO MAKE THEM LESS ATTRACTIVE TO SMUGGLERS IT ALSO ANNOUNCED TOUGHER ENFORCEMENT OF ANTISMUGGLING LAWS AND MEASURES TO RAISE THE LEGAL AGE FOR PURCHASING CIGARETTES TO 18 FROM 16 THE CONTRABAND CIGARETTES ARE MAINLY A CANADIANMADE PRODUCT THAT IS EXPORTED DUTYFREE TO THE US AND THEN REROUTED ILLEGALLY TO CANADA CANADIAN EXPORTS TOTALED 177 BILLION CIGARETTES LAST YEAR UP 77 FROM 1992 CANADIAN ANTISMOKING GROUPS SAID THE TAX ROLLBACKS WOULD ENCOURAGE SMOKING ESPECIALLY AMONG YOUNG PEOPLE AND LEAD TO AN ADDITIONAL 250000 SMOKINGRELATED DEATHS CANADA'S FEDERAL AND PROVINCIAL GOVERNMENTS HAVE SAID ILLEGAL CIGARETTE SALES HAVE CAUSED HEAVY TAX LOSSES FOR THEM THE TWO LEVELS OF GOVERNMENT LOST A COMBINED C2 BILLION LAST YEAR TO SMUGGLING CHRISTOPHER J CHIPELLO IN MONTREAL CONTRIBUTED TO THIS ARTICLE 9402090099 940209 FOREIGN EXCHANGE BRITISH RATE CUT SENDS POUND REELING DOLLAR AT 29MONTH HIGH AGAINST MARK BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SURPRISE CUT IN BRITISH INTEREST RATES YESTERDAY SHARPLY DENTED RECENT STERLING BULLISHNESS AND DRAGGED DOWN OTHER EUROPEAN CURRENCIES IT ALSO HELPED PROPEL THE DOLLAR TO A 29MONTH HIGH AGAINST THE MARK THE BANK OF ENGLAND ANNOUNCED A CUT IN ITS BASE LENDING RATE TO 525 FROM 550 WHICH SENT THE POUND SPIRALING DOWNWARD AGAINST THE MARK AND THE DOLLAR TRADERS SAID THE MOVE WAS UNEXPECTED BECAUSE THE UK ECONOMY IS ALREADY RECOVERING STRONGLY PROMPTING FEARS OF GROWING INFLATIONARY PRESSURES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17640 MARKS UP FROM 17590 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10875 YEN UP MARGINALLY FROM 10870 YEN STERLING WAS TRADING AT 14665 OFF SHARPLY FROM 14825 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10845 YEN AND AT 17630 MARKS FOLLOWING THE RATECUT ANNOUNCEMENT THE POUND FELL MORE THAN TWO CENTS TO AN INTRADAY LOW OF 14654 A LEVEL NOT SEEN SINCE NOV 10 LATE IN NEW YORK THE POUND ALSO TRADED AT 25862 MARKS DOWN SHARPLY FROM 26077 MARKS LATE MONDAY TRADERS SAID THE DOLLAR WAS THE MAIN BENEFICIARY OF THE BRITISH RATE CUT WITH INVESTORS SEEKING REFUGE OUTSIDE OF ECONOMICALLY DEPRESSED EUROPE AND MOVING INTO THE US WHERE SHORTTERM INTEREST RATES CLIMBED ON THE FEDERAL RESERVE'S TIGHTENING OF CREDIT POLICY LAST WEEK THE UK RATECUT ANNOUNCEMENT WAS INITIALLY GREETED AS A POLITICAL MOVE TO HELP STRENGTHEN THE UK ECONOMY PRIOR TO INTRODUCTION OF UNPOPULAR TAX INCREASES IN APRIL SPECULATION WAS THAT THEY THE BRITISH ARE DOING IT TO HURT THE CURRENCY IN ORDER TO HELP THEIR EXPORTERS SAID LIZBETH GOLDBERG ASSISTANT VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK TRADERS SAID THE BRITISH GOVERMENT PROBABLY WANTS TO KEEP THE POUND IN CHECK SO THAT BRITISH EXPORTERS REMAIN COMPETITIVE MS GOLDBERG SAID THE BANK OF ENGLAND'S ACTION SHOULD BE SEEN AS A MOVE AGAINST THE MARK BECAUSE STERLING WAS TOO STRONG FOR THEIR TASTE UK CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE SAID YESTERDAY THAT HE DECIDED ON A RATE CUT BECAUSE UK INFLATION REMAINS SUBDUED ANALYSTS ALSO NOTED THAT A QUARTERPOINT REDUCTION IN BASE RATES WAS RELATIVELY CAUTIOUS THE BRITISH CENTRAL BANK HAS TENDED TO MOVE ITS KEY RATES IN HALFPOINT INCREMENTS THE MARK MEANWHILE LOST GROUND AGAINST THE DOLLAR ON CONTINUED POOR ECONOMIC DATA AND THREATS OF A LABOR STRIKE GERMAN UNEMPLOYMENT TOPPED FOUR MILLION IN JANUARY INCREASING BY 340000 FROM DECEMBER THE FEDERAL LABOR OFFICE ANNOUNCED ALSO LEADERS OF GERMAN'S IG METALL METAL WORKERS UNION YESTERDAY SET A FEB 21 DEADLINE FOR REACHING A SETTLEMENT IN THEIR ARDUOUS WAGE NEGOTIATIONS TALKS YESTERDAY WERE DESCRIBED AS FROSTY WITH THE GERMAN ECONOMIC PICTURE BLEAK THE DOLLAR REACHED AN INTRADAY HIGH OF 17686 MARKS A NEW HIGH FOR 1994 AND A LEVEL LAST SEEN AUG 21 1991 TWO DAYS AFTER THE ATTEMPTED COUP AGAINST FORMER SOVIET PRESIDENT MIKHAIL S GORBACHEV TRADERS NOTED TOO THAT THE BUNDESBANK'S DECISION TO LEAVE 14DAY REPOS ITS MAIN INSTRUMENT FOR INFLUENCING THE MONEY MARKET UNCHANGED AT A FIXED RATE OF 6 LEFT THE IMPRESSION GERMANY'S CENTRAL BANK WASN'T PREPARED TO CUT ITS KEY LOMBARD AND DISCOUNT RATES ANYTIME SOON 9402090098 940209 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 CHIQUITA BRANDS INTERNATIONAL INC 175 MILLION OF SENIOR NOTES DUE MARCH 1 2004 PRICED AT PAR TO YIELD 9125 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CONSOLIDATED EDISON CO OF NEW YORK INC 150 MILLION OF DEBENTURES DUE FEB 15 2029 PRICED AS 7125S AT 98945 TO YIELD 7208 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF STEPUP NOTES DUE FEB 15 1999 PRICED AT PAR TO YIELD 508 ACCORDING TO MCM CORPORATEWATCH THE COUPON STEPS UP TO 6 FEB 15 1996 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 66 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PAINEWEBBER GROUP INC 200 MILLION OF SENIOR NOTES DUE FEB 15 2014 PRICED AS 7625S AT 99594 TO YIELD 7665 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 1125 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERALMOGUL CORP FIVE MILLION COMMON SHARES PRICED AT 34375 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP IN THE US ACCORDING TO THE COMPANY INTERNATIONAL POST GROUP INC INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY FURMAN SELZ INC AND FIRST ALBANY CORP LEVEL ONE COMMUNICATIONS INC 28 MILLION COMMON SHARES PRICED AT 2175 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC TATHAM OFFSHORE INC INITIAL OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY BEAR STEARS & CO AND KIDDER PEABODY & CO AMLI RESIDENTIAL PROPERTIES INC INITIAL OFFERING OF 89 MILLION COMMON SHARES PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DADE COUNTY FLORIDA SCHOOL DISTRICT 150 MILLION OF SERIES 1994 SCHOOLIMPROVEMENT BONDS APPARENTLY WON BY A SMITH BARNEY SHEARSON INC GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 29 IN 1995 TO 535 IN 2013 AND 2014 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 190 MILLION OF MENTALHEALTH SERVICES FACILITIESIMPROVEMENT REVENUE BONDS PRICED BY A LAZARD FRERES & CO GROUP YIELDS RANGE FROM 3 IN 1995 TO 576 IN 2023 MOODY'S RATED THE BONDS BAA1 AND S&P ASSIGNED A TRIPLEBPLUS RATING OHIO 120 MILLION OF SERIES 1994 INFRASTRUCTUREIMPROVEMENT AND REFUNDING GENERALOBLIGATION BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 24 IN AUGUST 1994 TO 52 IN 2012 AND 2013 MOODY'S AND S&P RATED THE BONDS DOUBLEA ORANGE COUNTY CALIFORNIA LOCAL TRANSPORTATION AUTHORITY 200 MILLION OF SALESTAX REVENUE BONDS PRICED BY A LEHMAN BROTHERS INC GROUP INCLUDED ARE 1148 MILLION OF BONDS PRICED TO YIELD FROM 285 IN 1995 TO 495 IN 2007 THE 852 MILLION OF INVERSE FLOATINGRATE NOTES AREN'T FORMALLY REOFFERED THEY HAVE FINAL MATURITIES IN 1999 2006 AND 200811 ALL OF THE SECURITIES ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1698 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 1 BILLION OF FLOATINGRATE EURONOTES DUE MAR 8 1999 AT ISSUE AND REOFFER PRICE 9971 VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY AT 00625 POINT BELOW THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE GUARANTOR ABBEY NATIONAL PLC FEES 015 AUSTRALIAN INDUSTRY DEVELOPMENT CORP AUSTRALIAN AGENCY 150 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE MAR 30 2004 AT ISSUE PRICE 996 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 686 AFTER FEES OF 2125 GUARANTOR AUSTRALIA BANCO NACIONAL SA BRAZIL 100 MILLION MARKS OF 85 EUROBONDS DUE MARCH 17 1997 VIA COMMERZBANK AG ISSUE PRICE 1004 BONDS YIELD MARGIN OF 375 BASIS POINTS OVER COMPARABLE GERMAN BUND AT 9877 COMANAGERS' BREAKEVEN PRICE FEES 18 LESS 017 FOR LEAD MANAGER BHF FINANCE NETHERLANDS BV GERMAN PARENT 200 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 8 1999 AT ISSUE AND REOFFER PRICE 99325 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE FLAT AT THREEMONTH DOLLAR LIBOR GUARANTOR BERLINER HANDELS UND FRANKFURTER BANK FEES 02 DAIKIN MANUFACTURING CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEB 24 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0125 COUPON AT PAR VIA NOMURA BANK SWITZERLAND LTD WARRANTS EXERCISABLE FROM MARCH 10 TO FEB 10 1998 TERMS FIXED FEB 15 FEES 1625 DE BEERS CENTENARY FINANCE PLC SWISS PARENT 150 MILLION OF 825 REGISTERED LOAN STOCK DUE MAR 31 2009 AT ISSUE PRICE 98973 VIA HAMBROS BANK LTD NOTES YIELD 8368 A SPREAD OF 165 BASIS POINTS OVER 9 UK GILT OF 2008 GUARANTOR DE BEERS CENTENARY AG FEES 075 PAYABLE SEMIANNUALLY GRUPO MEXICANO DE DESARROLLO MEXICO 200 MILLION OF 825 EUROBONDS DUE FEB 17 2001 AT PAR VIA BEAR STEARNS INTERNATIONAL LTD PRICED TO YIELD MARGIN OF 255 BASIS POINTS OVER COMPARABLE US TREASURY GUARANTOR DESARROLLO DE INFRASTRUCTURA OBRAS Y PROYECTOS DESARROLLO URBANO INTEGRAL AND DESARROLLO INDUSTRIAL LATINO AMERICANO FEES UNDISCLOSED PAYABLE SEMIANNUALLY IKB FINANCE BV GERMAN PARENT 100 MILLION OF 6375 EUROBONDS DUE DEC 6 1999 VIA BARING BROTHERS & CO ISSUE AND REOFFER PRICE 99874 TO YIELD 639 A MARGIN OF 37 BASIS POINTS OVER COMPARABLE GILT GUARANTOR IKB DEUTSCHE INDUSTRIEBANK AG FEES 03 INTERNATIONALE NEDERLANDEN VERZEKERINGEN NETHERLANDS 100 MILLION SWISS FRANCS 2 PUBLIC BONDS DUE MARCH 24 2000 PRICED AT PAR CARRYING WARRANTS ON INTERNATIONALE NEDERLANDEN GROEP VIA SWISS BANK CORP NOTES EXERCISABLE FROM MARCH 31 TO MARCH 1 1996 TO PURCHASE ING SHARES AT ZERO PREMIUM TO AVERAGE CLOSING SHARE PRICE YESTERDAY AND TODAY FEES 225 NATIONAL AUSTRALIA BANK LTD AUSTRALIA 250 MILLION AUSTRALIAN DOLLARS OF 625 EUROBONDS DUE MARCH 29 1999 AT ISSUE PRICE 10035 VIA HAMBROS BANK LTD BONDS YIELD 662 AT 98475 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 29 BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT NOTE FEES TWO NIPPON COMSYS CORP JAPAN 100 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS DUE MAR 3 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM MAR 17 TO FEB 24 1998 TERMS FIXED FEB 15 TUESDAY'S CLOSING SHARE PRICE 1500 YEN FEES 225 LESS 015 FOR LEAD MANAGER NIHON KOGYO CO JAPAN 55 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 075 NOTES DUE MAR 31 1998 AT PAR VIA NEW JAPAN SECURITIES NOTES CONVERTIBLE FROM MARCH 14 TO MARCH 20 1998 AT EXPECTED 25 PREMIUM TERMS FIXED MONDAY FEES ONE SWEDEN SOVEREIGN 300 MILLION FRENCH FRANCS OF EURONOTES DUE MAR 1 1999 AT ISSUE AND REOFFER PRICE PAR VIA BANQUE PARIBAS COUPON 6125 FIRST YEAR THEREAFTER COUPON AT DIFFERENCE BETWEEN 317 AND FIVE TIMES FIVEYEAR FRENCH FRANC SWAP RATE COUPON FIXED FEB 27 1995 FEES UNDISCLOSED 9402090097 940209 HEARD ON THE STREET FRANCE'S ELF AQUITAINE WILL DRAW PROSPECTORS WHO SEE GOLD WITH TURNAROUND UNDER JAFFRE BY ALLANNA SULLIVAN AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL WHAT A TIME FOR FRANCE TO PUT 6 BILLION OF STOCK IN SOCIETE NATIONALE ELF AQUITAINE ITS NATIONAL OIL COMPANY ON THE BLOCK ELF'S EARNINGS PLUMMETED 82 IN 1993 SINCE 1989 THE COMPANY'S DEBT AS A PERCENTAGE OF ITS EQUITY HAS MORE THAN TRIPLED TO ALMOST 50 FROM 13 AND WITH OIL PRICES CLOSE TO FIVEYEAR LOWS ELF'S FINANCIAL OUTLOOK FOR THIS YEAR ISN'T GOOD EITHER BUT NONE OF THAT HAS STOPPED THE FRENCH GOVERNMENT FROM GOING AHEAD WITH ITS PLAN TO SLASH ITS 507 CONTROLLING INTEREST IN THE OIL GIANT TO 13 THE AMBITIOUS GLOBAL OFFERING INVOLVES SIMULTANEOUSLY SELLING MORE THAN 88 MILLION OF ELF'S 257 MILLION SHARES OUTSTANDING IN SEVERAL INTERNATIONAL MARKETS AT ONCE BUT SHOULD INVESTORS BE BUYING WHAT THE FRENCH GOVERNMENT IS SELLING OR FOR THAT MATTER SHOULD THEY BE INTERESTED IN THE ELF SHARES THAT ALREADY TRADE ON PUBLIC EXCHANGES SUCH AS ITS 19 MILLION AMERICAN DEPOSITARY RECEIPTS TRADING ON THE NEW YORK STOCK EXCHANGE ELF ADRS EACH OF WHICH IS EQUAL TO ONEHALF SHARE OF ELF COMMON CLOSED YESTERDAY AT 36 1/8 DOWN 1/8 ON ABOVEAVERAGE VOLUME THE ANSWER TO BOTH OF THE ABOVE QUESTIONS IS PROBABLY YES ESPECIALLY IF YOU BELIEVE THAT PHILIPPE JAFFRE ELF'S CHAIRMAN SINCE AUGUST WILL SUCCEED IN HIS PLAN TO OVERHAUL THE COMPANY TO BE SURE GETTING EXPERT OPINION ABOUT ELF'S PROSPECTS IS A COMPLICATED MATTER RIGHT NOW WALL STREET CURRENTLY ABOUNDS IN ELF EXPERTS A BYPRODUCT OF ALL THE BONING UP ANALYSTS HAVE DONE TO COMPETE IN THE RITUAL BEAUTY CONTEST OF SELECTING INVESTMENTBANKING FIRMS TO MANAGE THE HUGE UNDERWRITING BUT THOSE EXPERTS WHO ARE PARTICIPATING IN THE DEAL AND THERE ARE A LOT OF THEM ARE NOW INHIBITED BY SECURITIES AND EXCHANGE COMMISSION REGULATIONS FROM TALKING PUBLICLY WHILE THE OFFERING IS UNDER WAY EVEN SO BY CONSULTING ANALYSTS NOT UNDER THE BAN AND ALSO BY LOOKING AT DATA THAT ANALYSTS AND PORTFOLIO MANAGERS PUT OUT PRIOR TO BEING SILENCED INVESTORS GET A PICTURE OF ELF AS A COMPANY IN NEED OF REPAIR RELATIVE TO INTERNATIONAL RIVALS ELF IS A LATECOMER TO RESTRUCTURING COSTCUTTING AND DEBTREDUCTION ANALYSTS SAY ELF IS WHERE US OIL COMPANIES WERE 10 YEARS AGO SAYS BRYAN JACOBOSKI ANALYST FOR PAINEWEBBER INC IN NEW YORK ELF'S FORMER CHAIRMAN LOIK LEFLOCH PRIGENT GOT THE COMPANY INTO A LOT OF BAD DEALS SAYS BERNIE PICCHI ANALYST FOR KIDDER PEABODY & CO IN NEW YORK THE COMPANY PAID TOO MUCH FOR SOME EXPLORATION AND PRODUCTION ASSETS SUCH AS ITS 1991 PURCHASE OF OCCIDENTAL PETROLEUM CO'S INTEREST IN THE NORTH SEA AND ELF'S DECISION TO COMMIT ITSELF TO THE CONSTRUCTION OF A COMPLETELY NEW REFINERY IN WHAT WAS FORMERLY EAST GERMANY AT A COST OF MORE THAN 15 BILLION JUST ISN'T GOOD ECONOMICS BUT MR JAFFRE'S ARRIVAL AT THE HELM HAS ENCOURAGED SOME INVESTORS TO OVERLOOK ELF'S BUMPY THREEYEAR RUN AT RECENT ROAD SHOWS IN EUROPE AND THE US MR JAFFRE DIDN'T PULL PUNCHES ABOUT ELF'S DISCOURAGING PROSPECTS FOR 1994 BUT MR JAFFRE DID INSIST AT THOSE MEETINGS THAT EARNINGS WILL IMPROVE IF SLOWLY OVER THE NEXT FEW YEARS MR JAFFRE ALSO ASSURED POTENTIAL INVESTORS THAT HE HAS COMMITTED ELF TO A PROGRAM OF COSTCUTTING AND ASSET SALES SOME INVESTORS SEE ELF AS ALREADY RIPE FOR AN UPTURN IT SHOULD BENEFIT FROM HIGHER OIL DEMAND AS EUROPEAN ECONOMIES LED BY FRANCE BEGIN TO PICK UP THIS YEAR THESE INVESTORS SAY ELF'S BOTTOM LINE SHOULD ALSO RECEIVE A BOOST AS OIL FIELDS IT'S BEEN DEVELOPING COME ON STREAM LIFTING OIL OUTPUT BY 20 TO ONE MILLION BARRELS DAILY POSSIBLY AS EARLY AS NEXT YEAR THAT PRODUCTION GROWTH SHOULD OFFSET THE IMPACT OF THE LACKLUSTER OIL PRICES ELF OFFICIALS HAVE SAID VINCENT BAZI OF BARING SECURITIES IN PARIS SAYS THE COMPANY IS UNDERVALUED BASED UPON ITS 40 PRICETOCASHFLOW MULTIPLE COMPARED WITH AVERAGE MULTIPLES OF 6 TO 7 FOR OTHER EUROPEAN OIL STOCKS DATA FROM SWISS BANK CORP SHOW ELF IS SIMILARLY CHEAP RELATIVE TO US OIL COMPANIES ELF IS A GOOD LONGTERM INVESTMENT SAYS DOUGLAS TERRESON MANAGER OF PUTNAM ENERGY RESOURCES TRUST WHICH IS BASED IN BOSTON AND OWNS ELF SHARES HE AND OTHERS WHO FOLLOW THE STOCK RECOMMEND THAT ELF SHARES BE HELD FOR 18 TO 24 MONTHS ABOUT THE LENGTH OF TIME THEY THINK IT WILL TAKE FOR MR JAFFRE TO MAKE AN IMPACT ON ELF MEANWHILE RELIEVING THE STIGMA OF GOVERNMENT CONTROL SHOULD HELP BUOY THE COMPANY'S STOCK PRICE AS WELL ANALYSTS SAY THE GOVERNMENT IS SELLING ITS ELF STAKE IN A SERIES OF TRANCHES WITH SPECIFIC PORTIONS ALLOCATED INSTITUTIONS EMPLOYEES AND INDIVIDUALS A CORE GROUP OF MOSTLY FRENCH COMPANIES HAVE PLEDGED TO HOLD THEIR STAKE IN ELF FOR SEVERAL YEARS AS A TYPE OF POISON PILL DEFENSE AGAINST POTENTIAL TAKEOVERS SHARES SOLD TO FRENCH INDIVIDUAL INVESTORS UNDER THE OFFERING WERE PRICED LATE LAST WEEK AT 385 FRENCH FRANCS A 106 DISCOUNT TO THE CLOSING SHARE PRICE LAST WEDNESDAY OF 4307 FRANCS ON THE PARIS BOURSE PRICES FOR INSTITUTIONAL AND CORE GROUP PURCHASES WON'T BE SET UNTIL MONDAY BUT ARE EXPECTED TO BE HIGHER THAN THAT NUMBER 9402090096 940209 HEALTH COSTS TO FALL IN SOME INDUSTRIES INCREASE IN OTHERS NEW ANALYSIS SHOWS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW ANALYSIS OF KEY FACETS OF THE CLINTON HEALTH PLAN SHOWS THAT IT WOULD LOWER HEALTHCARE COSTS FOR MANUFACTURERS WHILE LIFTING THEM FOR CONSTRUCTION COMPANIES RETAILERS AND OTHER SERVICESECTOR EMPLOYERS THE SOONTOBEPUBLISHED ANALYSIS BY TWO BROOKINGS INSTITUTION ECONOMISTS LOOKS AT THE IMPACT OF THREE CHANGES SIMILAR TO PROVISIONS IN THE WHITE HOUSE PLAN A REQUIREMENT THAT EMPLOYERS PAY 80 OF THE PREMIUM FOR EVERY WORKER THE ESTABLISHMENT OF A STANDARD BENEFIT PACKAGE AND WHAT'S KNOWN AS COMMUNITY RATING OR SETTING A SINGLE PREMIUM FOR EVERY EMPLOYER REGARDLESS OF THE AGE AND HEALTH OF ITS WORK FORCE THE ANALYSIS IS SUMMARIZED IN THE CONGRESSIONAL BUDGET OFFICE REPORT ON THE CLINTON HEALTH PLAN INDUSTRIES THAT ALREADY PROVIDE INSURANCE TO ALL THEIR WORKERS OR THAT HAVE PARTICULARLY HIGH HEALTH COSTS WOULD BENEFIT FROM THESE CHANGES ECONOMISTS HENRY AARON AND BARRY BOSWORTH CONCLUDE MANUFACTURERS OF AUTOS APPLIANCES AND OTHER LONGLASTING GOODS FOR INSTANCE WOULD SEE THEIR COST OF PROVIDING HEALTH INSURANCE FALL 35 OR 1349 A WORKER IN CONTRAST RETAILERS WHO CURRENTLY DON'T PROVIDE INSURANCE FOR MANY OF THEIR EMPLOYEES WOULD SEE THEIR COSTS CLIMB 165 OR BY 1303 A WORKER IN SOME CASES THE DIFFERENCES WOULD BE EVEN GREATER COAL MINING COMPANIES WITH THEIR AGING WORK FORCES AND HAZARDOUS WORKING CONDITIONS NOW SPEND 9982 A WORKER MR AARON SAID REQUIRING ALL COMPANIES TO PAY THE SAME PREMIUM AND INSURE ALL THEIR WORKERS WOULD CUT THAT BY ABOUT 6000 BECAUSE COMPANIES WITH YOUNGER WORK FORCES AND SAFER WORKING CONDITIONS EFFECTIVELY WOULD HAVE TO SHARE SOME OF THAT BURDEN EMPLOYERS' HEALTHCARE COSTS VARY GREATLY DEPENDING ON THE AGE HEALTH SEX AND LOCATION OF THEIR EMPLOYEES AND THEIR FAMILIES MR CLINTON WOULD CHANGE THAT BY SETTING THE SAME PREMIUM FOR ALL EMPLOYERS IN A GIVEN REGION THE BROOKINGS ANALYSIS APPROXIMATES THAT SITUATION BY ASSUMING THERE WOULD BE A SINGLE PREMIUM FOR THE WHOLE COUNTRY THE NEWS IN THIS FOR ME IS THAT THE REAL FINANCIAL CHANGE IN ANY MAJOR HEALTHCARE REFORM IS THE MOVE TO COMMUNITY RATING MR AARON SAID ONCE YOU'VE DONE THAT YOU'VE GOTTEN A VERY LARGE DOSE OF THE SHIFT OF COSTS THAT YOU'LL GET FROM ANY OF THE APPROACHES SEVERAL OF THE ALTERNATIVES TO THE CLINTON PLAN ALSO WOULD REQUIRE COMMUNITY RATING THE BROOKINGS ECONOMISTS ESTIMATE THAT THE AVERAGE PRIVATE EMPLOYER NOW PAYS 2017 A WORKER OR 72 OF TOTAL WAGES TOWARD WORKERS' HEALTHCARE COSTS WITH COMMUNITY RATING AND A MANDATE ON ALL EMPLOYERS TO PROVIDE A STANDARD BENEFIT PACKAGE THAT WOULD RISE TO 2253 A WORKER OR 8 OF TOTAL WAGES THE BROOKINGS ANALYSIS DOESN'T REFLECT ALL THE FEATURES OF THE CLINTON PROPOSAL IT IGNORES FOR INSTANCE SUBSIDIES THAT MR CLINTON WOULD PROVIDE TO CERTAIN SMALL EMPLOYERS WITH LOWWAGE WORKERS IT ALSO DOESN'T CONSIDER THE EFFECT OF COST CONTROLS IN THE CLINTON PLAN MR AARON NOTED THAT THE PAPER DOESN'T ADDRESS THE SUBSTANTIAL DIFFERENCES AMONG COMPANIES WITHIN A GIVEN INDUSTRY THE ANALYSIS WHICH IS BASED ON COMMERCE DEPARTMENT DATA IS TO BE PUBLISHED IN A FORTHCOMING ISSUE OF THE BROOKINGS PAPERS ON ECONOMIC ACTIVITY 9402090095 940209 ECONOMY FLEET FINANCIAL COMMITS 85 BILLION TO MINORITIES LOWINCOME BORROWERS BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL FLEET FINANCIAL GROUP INC PLANS A THREEYEAR 85 BILLION LOAN COMMITMENT TO LOW AND MODERATEINCOME BORROWERS AND MINORITYOWNED BUSINESSES ACCORDING TO PEOPLE FAMILIAR WITH THE INITIATIVE COMMUNITY ACTIVISTS SAID THE PROGRAM EXPECTED TO BE UNVEILED TOMORROW IS ONE OF THE LARGEST BANK INITIATIVES AIMED AT SUCH BORROWERS AND REPRESENTS AN EFFORT BY FLEET TO MITIGATE FEDERAL REGULATORY PRESSURE ON FAIRLENDING CONCERNS FLEET WHICH IS BASED IN PROVIDENCE RI HAS SETTLED STATE PROBES IN GEORGIA AND MASSACHUSETTS ALLEGING UNFAIR LENDING PRACTICES IN MINORITY AND LOWINCOME COMMUNITIES AND IS EXPECTED SOON TO SEEK FEDERAL CLEARANCE FOR THE ACQUISITION OF STERLING BANCSHARES CORP OF WALTHAM MASS SUCH FEDERAL REVIEWS HAVE BEEN WIDELY USED BY CONSUMER GROUPS AND REGULATORS TO RAISE COMMUNITYLENDING CONCERNS PEOPLE FAMILIAR WITH THE INITIATIVE TO BE CALLED FLEET INCITY SAID IT PRIMARILY WILL MAKE MORTGAGES AVAILABLE FOR LOWINCOME PEOPLE AND ALSO WILL LOOSEN LENDING CRITERIA FOR MINORITYOWNED AND WOMENOWNED BUSINESSES ALTHOUGH THE PROGRAM WILL INCLUDE PAST COMMITMENTS MADE BY FLEET TO LOWINCOME AND MINORITY LENDING ONE BANK INSIDER SAID IT REPRESENTED A VERY SIGNIFICANT INCREASE IN SUCH PLEDGES A FLEET SPOKESMAN DECLINED TO COMMENT ANDREW FRISHKOFF HOUSING DIRECTOR FOR THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW IN PHILADELPHIA SAID FLEET'S PROGRAM IS ONE OF THE LARGEST EVER WHILE OTHER BANKS ALSO HAVE COMMITTED FUNDS A LOT OF OTHER AGREEMENTS WERE SMALLER AND FOCUSED PRIMARILY ON HOUSING OR BUSINESS NOT BOTH HE SAID IT WASN'T CLEAR HOW MANY LOWINCOME MORTGAGE AND MINORITYBUSINESS LOANS THE COMPANY CURRENTLY HAS OUTSTANDING ALTHOUGH FLEET EMPLOYEES SAID THE INITIATIVE WILL INCLUDE SOME LOAN PROGRAMS ALREADY CREATED THE MAJORITY OF THE 85 BILLION WILL BE ADDITIONAL MONEY THEY SAID THE INITIATIVE COMES AT A TIME FEDERAL REGULATORS HAVE SHOWN A NEW INSISTENCE ON LENDING TO LOWINCOME AND MINORITY BORROWERS LAST NOVEMBER THE FEDERAL RESERVE BOARD REJECTED AN APPLICATION BY SHAWMUT NATIONAL CORP ONE OF FLEET'S BIGGEST COMPETITORS TO ACQUIRE NEW DARTMOUTH BANK OF MANCHESTER NH CITING SHAWMUT'S POOR RECORD IN SUPPLYING FAIRLENDING DATA SHAWMUT HARTFORD CONN LATER SETTLED CHARGES OF LENDING DISCRIMINATION WITH THE JUSTICE DEPARTMENT FLEET HAS RECEIVED ITS SHARE OF LENDING COMPLAINTS THE COMPANY RECENTLY AGREED TO MAKE ABOUT 30 MILLION IN REFUNDS AND OTHER CONCESSIONS AND 70 MILLION IN LOANS TO PREVENT THE GEORGIA ATTORNEY GENERAL FROM FILING UNFAIRLENDING CHARGES AGAINST FLEET'S ATLANTABASED CONSUMERFINANCE UNIT COMMUNITY ACTIVISTS SAY FLEET'S SETTLEMENT IN GEORGIA AND THE NEW LENDING PLAN STEM FROM FEAR THAT REGULATORS MAY NOT OTHERWISE APPROVE ITS PROPOSED ACQUISITION OF STERLING AND OTHER POSSIBLE ACQUISITIONS IN THE FUTURE FLEET ANNOUNCED THE PURCHASE OF STERLING IN OCTOBER BUT HAS YET TO SUBMIT AN APPLICATION FOR FEDERAL APPROVAL SHAWMUT SAW THAT WHEN THE FED REJECTED ITS PURCHASE THE FED WENT AFTER ITS JUGULAR SAID BRUCE MARKS EXECUTIVE DIRECTOR OF THE UNION NEIGHBORHOOD ASSISTANCE CORP A BOSTON ADVOCACY GROUP THAT HAS BEEN CRITICAL OF FLEET I THINK SHAWMUT FLEET AND ALL THE OTHER INSTITUTIONS OUT THERE ARE NERVOUS NCNB CORP AND C&S/SOVRAN CORP ANNOUNCED A SIMILAR LENDING PROGRAM IN 1991 THE BANKS WHICH LATER MERGED COMMITTED 10 BILLION IN LOANS FOR COMMUNITY DEVELOPMENT OVER 10 YEARS IN PREPARING TO LAUNCH ITS INITIATIVE FLEET SUBMITTED A LETTER TO THE US TREASURY DEPARTMENT A TREASURY SPOKESWOMAN SAID WHILE TREASURY APPROVAL OR INVOLVEMENT ISN'T REQUIRED FOR SUCH A PROGRAM FLEET MAY HAVE MADE THE NOTIFICATION BECAUSE IT'S CLEAR THE ADMINISTRATION HAS BEEN ACTIVELY ENCOURAGING BANKS TO TAKE THEIR COMMUNITY DEVELOPMENT RESPONSIBILITIES SERIOUSLY THE SPOKESWOMAN SAID 9402090094 940209 INDUSTRY FOCUS HEALTHCARE REFORMS RAISE PRESSURE ON HOSPITAL BONDS RISK AND INTEREST RATES MAY RISE AMID MANAGED CARE OTHER CHANGES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL THE ECONOMIC AND POLITICAL FORCES THAT ARE TRANSFORMING US HEALTH CARE ARE ALSO BUFFETING ONE OF THE HOSPITAL INDUSTRY'S BEDROCK INVESTMENTS TAXEXEMPT BONDS MANAGEDCARE STRATEGIES USED BY EMPLOYERS TO CONTROL HEALTH COSTS ARE APPLYING A TOURNIQUET TO INPATIENT HOSPITAL REVENUE EVEN WHILE LEGISLATIVE HEALTHREFORM PROPOSALS IN WASHINGTON TARGET EXPENDITURES FOR HOSPITAL CARE AS AN IMPORTANT SOURCE OF SAVINGS THESE DEVELOPMENTS ARE RAISING NEW QUESTIONS ABOUT THE QUALITY OF THE ASSETS BEHIND SOME OF THE MORE THAN 115 BILLION OF TAXEXEMPT HOSPITAL BONDS CURRENTLY HELD BY INVESTORS WHETHER IT'S COMING OUT OF WASHINGTON OR HAPPENING IN THE PRIVATE SECTOR IT'S CHANGING THE VOLATILITY OF THE INDUSTRY SAYS JOHN GOETZ OF MOODY'S INVESTORS SERVICE A RATER OF HOSPITAL BONDS THAT CREATES RISK IN AN INVESTOR'S MIND NO ONE PREDICTS THAT HOSPITAL BONDS ARE POISED FOR A RASH OF DEFAULTS ABOUT HALF THE HEALTHCARE BONDS ISSUED EACH YEAR ARE BACKED BY BOND INSURANCE OR OTHER CREDIT BOOSTERS AND A FLURRY OF HOSPITAL MERGERS AND ALLIANCES THAT ARE PART OF A HEALTHCARE INDUSTRY CONSOLIDATION MAY STRENGTHEN THE FINANCIAL POSITION OF PARTICIPANTS BY REDUCING INEFFICIENCIES OR COMPETITION NEVERTHELESS EXPERTS SAY THE CHANGING CLIMATE INCREASES RISKS FOR CURRENT BONDHOLDERS AT THE SAME TIME HOSPITALS ARE BEGINNING TO SEEK NEW CAPITAL TO TRANSFORM THEMSELVES INTO ORGANIZATIONS THAT CAN COMPETE IN THE FUTURE HEALTHCARE MARKET INVESTORS BOUGHT INTO A WAY OF DELIVERING AND FINANCING HEALTH CARE FOR 30 YEARS AND NOW WE ARE TRYING TO ABRUPTLY CHANGE DIRECTION SAYS CHRISTOPHER CONLEY SENIOR VICE PRESIDENT PUBLIC FINANCE AT LEHMAN BROTHERS AN UNDERWRITER OF MANY TYPES OF TAXEXEMPT BONDS THESE WORRIES HAVEN'T YET TRANSLATED INTO HIGHER INTEREST RATES FOR HOSPITAL BONDS MR CONLEY SAYS BUT OUR CONCERN IS THAT IT COULD THE MORE TROUBLE YOU HAVE THE HIGHER THE RATES HOSPITAL BONDS TYPICALLY BEAR AN INTEREST RATE ONEQUARTER OF A PERCENTAGE POINT HIGHER THAN SIMILARLY RATED REVENUE BONDS FOR SAY MUNICIPAL SEWER PROJECTS HE SAID WHILE RATES AMONG HOSPITAL BONDS OF DIFFERENT RISK CAN VARY BY A FULL PERCENTAGE POINT OR MORE FOR YEARS THE COMBINATION OF TAXEXEMPT BONDS AND A FEDERAL MEDICARE REIMBURSEMENT POLICY THAT FAVORED DEBTFINANCED CAPITAL PROJECTS HAS FUELED A CONSTRUCTION AND TECHNOLOGY BOOM AT US HOSPITALS PAYING FOR PROJECTS RANGING FROM CANCER CENTERS TO PARKING GARAGES INDIVIDUAL INVESTORS HAVE PUT UP MUCH OF THE CAPITAL SNAPPING UP BONDS ISSUED FOR THEIR LOCAL HOSPITALS THROUGH STATE AND MUNICIPAL FINANCING AUTHORITIES BUT ECONOMISTS HEALTHPOLICY EXPERTS AND EMPLOYERS WHO PURCHASE HEALTH CARE THINK THIS HAS LED TO TOO MUCH OF A GOOD THING MANY MARKETS ARE BURDENED WITH AN OVERCAPACITY OF HOSPITAL BEDS AND MEDICAL TECHNOLOGY BIG DRIVERS OF EXCESSIVE HEALTH COSTS LARGE CUSTOMERS ARE DEMANDING NOT ONLY DISCOUNTS BUT MORE EFFICIENCY FROM HOSPITALS A MAJOR FACTOR BEHIND THE CONSOLIDATIONS IN THE HEALTHCARE SECTOR HOSPITAL CREDIT QUALITY HAS ALREADY ERODED IN RECENT YEARS REFLECTING THESE DEVELOPMENTS AND THE MEDICARE PROGRAM'S SWITCH A DECADE AGO TO PAYING HOSPITALS ON A FIXED RATE PER DIAGNOSIS FROM PAYING FEE FOR SERVICE IN 1992 STANDARD & POOR'S RATED 52 OF HOSPITAL BONDS AS A OR ABOVE DOWN FROM 77 IN 1983 7 OF BONDS WERE CONSIDERED BELOW INVESTMENT GRADE COMPARED WITH 1 A DECADE AGO NOW GROWTH OF MANAGEDCARE CONTRACTS AND EXPECTATIONS THAT HOSPITAL CARE INCREASINGLY WILL BE PAID IN ADVANCE IN SET MONTHLY RATES AND NOT BASED ON SERVICES PROVIDED WILL PUT EVEN MORE PRESSURE ON HOSPITAL REVENUES IF MANAGED CARE IS WILDLY SUCCESSFUL ABOUT HALF OF THE INPATIENT VOLUME WOULD FALL OUT OF THE HOSPITAL MARKETPLACE SAYS RICHARD CLARKE PRESIDENT OF THE HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION A CHICAGOBASED ORGANIZATION OF HOSPITAL FINANCE OFFICIALS MEANTIME PRESIDENT CLINTON'S HEALTHREFORM PLAN CALLS FOR STANCHING GROWTH IN MEDICARE EXPENDITURES AND FOR REDUCING PAYMENTS FOR CAPITALRELATED COSTS FOR INPATIENT SERVICES TO HELP FINANCE COVERAGE FOR THE UNINSURED AND NEW BENEFITS FOR THE ELDERLY KENNETH RASKE PRESIDENT OF THE GREATER NEW YORK HOSPITAL ASSOCIATION ESTIMATES THAT THE PROPOSED CUTBACKS WOULD CHOP 4 BILLION OF REVENUE FROM HIS MEMBERS OVER FIVE YEARS FOR INVESTORS ALL OF THIS MEANS A HOSPITAL'S FINANCIAL STRENGTH WILL DEPEND LESS ON ITS ABILITY TO FILL BEDS AND MORE ON THE QUALITY OF ITS MANAGEMENT ITS CONTROL OF OPERATING COSTS AND ITS SUCCESS IN NEGOTIATING CONTRACTS WITH MANAGEDCARE COMPANIES AND OTHER LARGE PURCHASERS OF CARE SAYS STEVEN HARVEY PORTFOLIO MANAGER AT FIDELITY INVESTMENTS BOSTON FOR HOSPITALS THAT MEANS ADJUSTING TO THE GROWING CLOUT OF PURCHASERS MEMBERSHIP IS SOARING AT MANY LARGE HEALTHMAINTENANCE ORGANIZATIONS GIVING THEM INCREASING LEVERAGE IN NEGOTIATIONS WITH HOSPITALS THAT ARE PART OF THEIR DELIVERY NETWORKS AND MANY EMPLOYERS ARE POOLING THEIR PURCHASING POWER WITH THE SAME OBJECTIVES HOSPITALS COVET RELATIONSHIPS WITH LARGE CUSTOMERS BUT AN INSTITUTION COULD BECOME VULNERABLE TO A COUPLE OF BIG ACCOUNTS WHO COULD DASH ITS FORTUNES JUST BY TAKING THEIR BUSINESS NEXT DOOR EXPERTS SAY TO SURVIVE UNDER CHANGING CONDITIONS HOSPITALS NEED SIZE A DIVERSITY OF OUTPATIENT SERVICES TO COMPLEMENT INPATIENT CARE AND SOPHISTICATED INFORMATION SYSTEMS ALL OF THAT TAKES CAPITAL BLESSING HOSPITAL QUINCY ILL FOR INSTANCE LAST YEAR USED 156 MILLION OF A 42 MILLION BOND ISSUE TO ACQUIRE A RIVAL AND EARMARKED ANOTHER 11 MILLION FOR RETROFITTING THE MERGED FACILITIES TO CONCENTRATE INPATIENT SERVICES AT ONE LOCATION AND OUTPATIENT AND LONGTERM CARE AT ANOTHER WE ESTIMATE A 22 MILLION SAVINGS OVER FIVE YEARS SAYS JAMES WATERKOTTE CHIEF FINANCIAL OFFICER AT INOVA HEALTH SYSTEM SPRINGFIELD VA OFFICIALS ARE USING 10 MILLION OF PROCEEDS FROM A RECENT 70 MILLION BOND ISSUE TO REVAMP THEIR INFORMATION SYSTEMS WITH A GOAL OF COMPUTERIZING NOT JUST BILLING FUNCTIONS BUT PATIENT MEDICAL RECORDS AMONG OTHER THINGS SAYS RICHARD MAGENHEIMER CHIEF FINANCIAL OFFICER WE THINK THERE'S GOING TO BE A COMPETITIVE ADVANTAGE FOR ORGANIZATIONS LIKE OURS TO PROVIDE FEEDBACK OF OUTCOME DATA TO MANAGEDCARE COMPANIES AND INSURERS INDUSTRY PARTICIPANTS SAY SUCH PROJECTS DEMONSTRATE THAT DESPITE A REDUCTION OF TRADITIONAL BRICKS AND MORTAR PROJECTS NOTFORPROFIT HOSPITALS WILL CONTINUE TO NEED CAPITAL TO MEET NEW DEMANDS FROM THEIR CUSTOMERS AS WELL AS TO KEEP THEIR CURRENT FACILITIES UP TO DATE THEIR ONLY ACCESS TO EXTERNAL CAPITAL IS DEBT THEY CAN'T SELL SHARES SAYS ROBERT FULLER OF S&P IF YOU DESTABILIZE THAT YOU MAY DO THINGS YOU DON'T INTEND TO DO ADDS THE GREATER NEW YORK'S MR RASKE CAPITAL FORMATION IS A LITMUS TEST FOR HEALTHCARE REFORM IF THE INDUSTRY HAS DIFFICULTY FORMING CAPITAL TO REJUVENATE ITSELF THE LONGTERM MEASURE OF HEALTH REFORM IS AT RISK 9402090093 940209 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 333 30 TO 59 DAYS 338 60 TO 89 DAYS 343 90 TO 119 DAYS 345 120 TO 149 DAYS 348 150 TO 179 DAYS 352 180 TO 249 DAYS 360 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 341 30 DAYS 345 60 DAYS 349 90 DAYS CERTIFICATES OF DEPOSIT 269 ONE MONTH 273 TWO MONTHS 278 THREE MONTHS 292 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 330 ONE MONTH 340 THREE MONTHS 355 SIX MONTHS BANKERS ACCEPTANCES 329 30 DAYS 334 60 DAYS 338 90 DAYS 341 120 DAYS 345 150 DAYS 348 180 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 9/16 3 7/16 FOUR MONTHS 3 5/8 3 1/2 FIVE MONTHS 3 11/16 3 9/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/8 ONE MONTH 3 9/16 THREE MONTHS 3 11/16 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 590 JAPAN 3 SWITZERLAND 750 BRITAIN 550 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 712 60 DAYS 717 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 711 60 DAYS 721 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 9402090092 940209 TECHNOLOGY & ENVIRONMENT ACREAGE MARKED FOR DESERT TORTOISE INCLUDES DISPUTED CALIFORNIA DUMP SITE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL WILDLIFE REGULATORS HAVE DESIGNATED 64 MILLION ACRES OF SOUTHWESTERN DESERT INCLUDING THE PROPOSED SITE OF A BITTERLYCONTESTED NUCLEAR WASTE DUMP IN CALIFORNIA AS CRITICAL HABITAT FOR THE DESERT TORTOISE THE ACTION BY THE US FISH AND WILDLIFE SERVICE IS CERTAIN TO REVERBERATE IN THE DEBATE OVER CONFLICTS BETWEEN WILDLIFE AND COMMERCE WHICH IS INTENSIFYING AS CONGRESS TAKES UP REAUTHORIZATION OF THE NATION'S PRINCIPAL WILDLIFE PROTECTION LAW THE ENDANGERED SPECIES ACT THE AGENCY'S MOVE SETS ASIDE NEARLY AS MUCH LAND FOR DESERT TORTOISES AS THE GOVERNMENT DID FOR SPOTTED OWLS MOST OF THE LAND IS IN CALIFORNIA BUT THREE OTHER STATES ARE ALSO AFFECTED SOME 80 OF THE LAND IS FEDERALLY OWNED WITH THE REMAINDER OWNED BY STATES INDIAN TRIBES AND PRIVATE INTERESTS PROTECTED UNDER FEDERAL LAW THE TORTOISES HAVE BEEN IN STEADY DECLINE BECAUSE OF DISEASE AND HABITAT DESTRUCTION CAUSED BY MINING OFFROAD VEHICLES AND OTHER HUMAN ENCROACHMENT ON THE DESERT MANY SCIENTISTS AGREE UNDER THE ENDANGERED SPECIES ACT HUMAN ACTIVITIES ON LAND DESIGNATED AS CRITICAL HABITAT FOR PROTECTED SPECIES CAN BE STRICTLY LIMITED THUS THE AGENCY'S MOVE CASTS FURTHER DOUBT OVER THE FUTURE OF THE LOWLEVEL NUCLEAR DUMP PROJECT KNOWN AS WARD VALLEY BUSINESS INTERESTS AND CALIFORNIA STATE OFFICIALS SAY THE FACILITY IS CRUCIAL TO THE HEALTH OF CALIFORNIA'S BURGEONING BIOTECH MEDICAL AND RESEARCH INDUSTRIES WHICH IN ADDITION TO MANY JOBS GENERATE MUCH LOWLEVEL NUCLEAR WASTE THE STATE HAS ISSUED A LICENSE TO US ECOLOGY INC TO BUILD AND OPERATE THE DUMP US ECOLOGY OFFICIALS SAY THEY'VE INVESTED ABOUT 40 MILLION TO DATE IN ENGINEERING AND ENVIRONMENTAL STUDIES AND OTHER PRECONSTRUCTION COSTS BUT ANTINUCLEAR ACTIVISTS AND ENVIRONMENTALISTS HAVE FOUGHT THE DUMP PROJECT FIERCELY FOR NEARLY 10 YEARS ASSERTING THAT IT THREATENS THE NEARBY COLORADO RIVER AS WELL AS DESERT ANIMALS SUCH AS THE TORTOISE MOREOVER WARD VALLEY IS ON FEDERAL LAND AND THE CLINTON ADMINISTRATION TO DATE HAS DECLINED TO TRANSFER THE LAND TO THE STATE A PREREQUISITE FOR DUMP CONSTRUCTION WHILE LAWSUITS CHALLENGING THE DUMP WEND THEIR WAY THROUGH THE COURTS ALTHOUGH THE CRITICAL HABITAT DESIGNATION THEORETICALLY DOESN'T DOOM THE WARD VALLEY PROJECT SINCE FEDERAL AGENCIES CAN PERMIT ACTIVITIES IN PRIME HABITAT AREAS UNDER CERTAIN CIRCUMSTANCES DUMP OPPONENTS WERE NONETHELESS JUBILANT IT SHOULD BE THE FINAL BLOW AGAINST THIS ILLADVISED PROJECT SAID PHILIP KLANSKY COCOORDINATOR OF THE BAY AREA NUCLEAR WASTE COALITION BUT STEVE ROMANO A US ECOLOGY VICE PRESIDENT SAID THE COMPANY THINKS IT CAN STILL BUILD THE DUMP WITHOUT HARMING TORTOISES IF THE CLINTON ADMINISTRATION TRANSFERS THE LAND TO THE STATE IF IT DOESN'T MR ROMANO SAID OUR COMPANY WOULD HAVE LITTLE ALTERNATIVE BUT TO SUE TO RECOVER ITS INVESTMENT SO FAR IN THE PROJECT THE WARD VALLEY DEBATE IS PART OF A LARGER NATIONAL PROBLEM OF COPING WITH LOWLEVEL NUCLEAR LEFTOVERS IN THE 1980S CONGRESS PASSED LAWS REQUIRING STATES TO HAVE LOWLEVEL DUMPS UP AND RUNNING BY 1993 THAT PROCESS HAS MELTED DOWN PLAGUED BY DESIGN AND ENVIRONMENTAL PROBLEMS AND BESET BY ENVIRONMENTAL PROTESTS NOT A SINGLE NEW LOWLEVEL WASTE DUMP HAS BEEN BUILT 9402090091 940209 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN HOW VULNERABLE IS THE IRS TO BEING CHEATED BY SOPHISTICATED CROOKS MEMBERS OF A HOUSE WAYS AND MEANS SUBCOMMITTEE CHAIRED BY REP PICKLE D TEXAS WILL RAISE THIS QUESTION WITH IRS OFFICIALS AT A PUBLIC HEARING TOMORROW MORNING CONCERN HAS MOUNTED SINCE A REPORT ON GROWING TAXPAYER FRAUD WAS ISSUED LAST YEAR BY THE GENERAL ACCOUNTING OFFICE A CONGRESSIONAL WATCHDOG AGENCY SOME TAX EXPERTS FEAR THE IRS IS ESPECIALLY VULNERABLE TO FRAUD FROM TAXPAYERS FILING ELECTRONICALLY THE IRS HIRED AN OUTSIDER TO STUDY THE ISSUE BUT HASN'T RELEASED THE REPORT YET THE GAO REPORT SAYS THE IRS FOUND TWICE AS MANY RETURNS INVOLVING FRAUDULENT REFUND CLAIMS LAST YEAR AS THE PRIOR YEAR BUT IT IS UNCLEAR HOW MUCH OF THAT INCREASE CAME FROM MORE FRAUD AND HOW MUCH FROM IMPROVED MONITORING WHAT DOES SEEM CLEAR IS THAT THE HARDER IRS LOOKS THE MORE FRAUD IT FINDS THE GAO SAYS AT TOMORROW'S HEARING TWO MEN CONVICTED OF FILING FRAUDULENT TAX RETURNS WILL GIVE DETAILS OF WHAT THEY DID TRUSTING THE POST OFFICE TO DELIVER TAX RETURNS TO THE IRS MAY BE RISKY WHAT HAPPENS IF POSTAL SERVICE GREMLINS DEVOUR AN IMPORTANT RETURN OR LETTER DON'T EXPECT MUCH IRS SYMPATHY IF A DISPUTE LATER ARISES AND THE TAXPAYER HAS NO PROOF OF HAVING MAILED A RETURN OR CHECK ON TIME LAWYERS WARN THUS MANY PEOPLE ROUTINELY GET REGISTERED RETURN RECEIPTS BUT IRS OFFICIALS SAY THAT SLOWS RETURN PROCESSING AND PROVES ONLY THAT THE TAXPAYER MAILED AN ENVELOPE NOT WHETHER ANYTHING WAS INSIDE SO TO BE EXTRA SAFE VALERIE PEARSALL ROBERTS A LAWYER AT WOOD WILLIAMS RAFALSKY & HARRIS IN NEW YORK ADVISES ENCLOSING AN EXTRA COPY OF THE TAX RETURN OR LETTER ALONG WITH A COVER LETTER ASK THE IRS TO STAMP THE EXTRA COPY AND RETURN IT IN YOUR STAMPED SELFADDRESSED ENVELOPES I DO IT ALL THE TIME AND I'VE NEVER HAD ANY TROUBLE SHE SAYS ROBERT L JOHNSON A NEW HAMPSHIRE ACCOUNTANT SUGGESTS WRITING THE RETURN RECEIPT NUMBER ON THE TAX RETURN OR LETTER AS IT IS BEING MAILED THOSE FORMS GENERALLY ARE AVAILABLE AT POSTAL COUNTERS COMEDY CENTRAL A FEDERAL APPEALSCOURT JUDGE ROASTS THE IRS FOR ITS BLOOPERS THIS CASE MAKES PLAIN THE PROPOSITION THAT KELLOGG DOES NOT HAVE A MONOPOLY ON FLAKES WRITES JUDGE IRVING L GOLDBERG IN US VS WALTER KELLOGG TRUSTEE FOR WEST TEXAS MARKETING CORP IN CHAPTER 7 BANKRUPTCY PROCEEDINGS INDEED IT IS KELLOGG'S OPPONENT THE UNITED STATES GOVERNMENT ACTING THROUGH THE INTERNAL REVENUE SERVICE IRS WHICH HAS COMMITTED TWO SCOOPS OF ERRORS ALLOWING A CASE WHICH SHOULD HAVE BEEN A SNAP TO DISSOLVE INTO A SERIES OF CRACKLES AND POPS THE JUDGE CONTINUES IN THE SERIAL ANTICS OF THIS CASE THE GOVERNMENT HAS REPEATEDLY FAILED TO DETERMINE THE ACTUAL TAX REFUND OWED TO THE DEBTOR WEST TEXAS MARKETING CORPORATION AND HAS SUGAR FROSTED THE REFUND OVERPAYING BY A CONSIDERABLE AMOUNT BUT EVEN THOUGH THE GOVERNMENT MADE MANY MISTAKES THE JUDGE SAID CIVIL PROCEDURE RULES ALLOW CORRECTION OF CLERICAL ERRORS WITHOUT TIME LIMIT THUS THE COURT VACATED A LOWERCOURT RULING AND ORDERED THE CASE TO BE REVIEWED AGAIN TALKING TURKEY A TREASURY OFFICIAL WILL ASK TURKEY ABOUT A RALSTON PURINA EXECUTIVE'S BEEF THE COMPANY COMPLAINED THAT A SUBSTANTIAL PORTION OF THE ANIMALFEED INDUSTRY IN TURKEY ISN'T PAYING A VALUEADDED TAX ON INGREDIENTS AND FINISHED PRODUCTS THE IRS SEEKS FEES FOR TAXPAYER SERVICES ITS FISCAL 1995 BUDGET REQUEST CALLS FOR AN 18 TO 20 CHARGE FOR PAYING TAXES IN INSTALLMENTS AND AN 8 CHARGE FOR A DIRECTDEPOSIT REFUND CONFIRMATION FEES FOR COPIES OF OLD RETURNS 12 UP FROM 425 BUDGETARY RESTRAINT CONGRESS'S JOINT TAX COMMITTEE NEEDS A 74 INCREASE IN ITS FISCAL 1995 BUDGET TO MORE THAN 61 MILLION SAYS HOUSE WAYS AND MEANS CHAIRMAN ROSTENKOWSKI D ILL THAT INCLUDES PAY RAISES FOR ABOUT 75 STAFFERS AS WELL AS EQUIPMENT AND SUPPLIES COMPANIES STRUGGLE TO FIGURE OUT HOW TO REACT TO A STARTLING IRS DEFEAT A RECENT FEDERAL APPEALSCOURT DECISION RAISES TRICKY QUESTIONS FOR MANY COMPANIES ALBERTSON'S A COMPANY BASED IN BOISE IDAHO AGREED TO DEFER PAY TO SEVERAL EXECUTIVES AND A DIRECTOR IT SAID PART OF THAT PAY REPRESENTED INTEREST AND DEDUCTED IT EACH YEAR EVEN THOUGH IT WON'T PAY IT FOR MANY YEARS THE APPEALS COURT REBUFFING THE IRS SIDED WITH THE COMPANY SOME COMPANIES WITH SIMILAR PLANS NOW PLAN TO FILE FOR REFUNDS BUT OTHERS FEAR THAT WOULD ONLY BE ASKING FOR BIG TROUBLE FROM THE IRS EVERYONE I'VE TALKED TO THINKS THE ALBERTSON'S DECISION IS WRONG SAYS PETER L FABER OF THE LAW FIRM OF KAYE SCHOLER IT'S BAD LAW THE IRS PROBABLY WILL ASK FOR A REHEARING IF THE ANSWER IS NO THE IRS MAY CHALLENGE OTHER COMPANIES IN OTHER REGIONS HOPING EVENTUALLY TO TAKE THE ISSUE TO THE SUPREME COURT OR THE IRS MIGHT TAX EXECUTIVES CURRENTLY ON THEIR DEFERRED INTEREST OR CONGRESS MIGHT CHANGE THE LAW LAWYERS URGE MOST CLIENTS TO TAKE NO ACTION UNTIL THE IRS MAKES ITS NEXT MOVE BRIEFS THANKS FOR REMINDING US THE TAX FOUNDATION SAYS ALL THE MONEY THE AVERAGE US TAXPAYER MAKES FOR TWO HOURS AND 41 MINUTES OF EACH WORKDAY GOES TO PAY FEDERAL STATE AND LOCAL TAXES NORA DALY A PAYROLLTAX ANALYST AT PACIFIC BELL IS THE NEW CHAIR OF THE IRS COMMISSIONER'S ADVISORY GROUP AN INFLUENTIAL GROUP OF NONIRS TAX EXPERTS WHO MAKE POLICY RECOMMENDATIONS TO THE IRS 9402090090 940209 TECHNOLOGY & ENVIRONMENT INDUSTRIES SEEK ADJUSTMENTS IN BELL PROPOSAL BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PUBLISHERS OF SMALL NEWSPAPERS BURGLARALARM COMPANIES ONLINE COMPUTER SERVICES AND TELEPHONE EQUIPMENT MAKERS EXPRESSED CONCERNS ABOUT LEGISLATION TO LET THE BELL TELEPHONE COMPANIES ENTER NEW BUSINESS LINES ALTHOUGH THE GROUPS GENERALLY SUPPORT THE BILLS WHICH HOUSE LEADERS HAVE PUT ON A FAST TRACK EACH IS SEEKING CHANGES THAT WOULD HELP ITS BUSINESS ONE BILL A COMPROMISE WORKED OUT BY COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS D TEXAS WOULD EVENTUALLY LET THE REGIONAL TELEPHONE COMPANIES PROVIDE LONGDISTANCE SERVICE AND MAKE PHONE EQUIPMENT A COMPANION MEASURE WOULD OPEN THE LOCAL PHONE BUSINESS TO COMPETITION AND LET PHONE COMPANIES INTO CABLE TELEVISION IN TESTIMONY YESTERDAY BEFORE THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE R JACK FISHMAN PRESIDENT OF LAKEWAY PUBLISHERS INC WHICH PUTS OUT THE CITIZENTRIBUNE A 21000CIRCULATION DAILY IN MORRISTOWN TENN WARNED THAT LEFT TO THEIR OWN DEVICES THE BELL COMPANIES COULD STIFLE RURAL COMPETITORS MR FISHMAN TOLD LAWMAKERS THAT STATE REGULATORS APPROVED THE USE OF A THREEDIGIT NUMBER 511 TO OFFER SOPHISTICATED INFORMATION SERVICES AT A MODEST FEE LAKEWAY FIGURED THAT IT WOULD DRAW ABOUT 3000 CALLS A MONTH BUT SOUTH CENTRAL BELL A UNIT OF ATLANTABASED BELLSOUTH CORP PROPOSED CHARGING AN INITIAL 22000 PLUS AT LEAST 10000 A MONTH CALLERS MR FISHMAN COMPLAINED WOULD GET SOCKED FOR MORE THAN 3 A CALL WELL ABOVE PRICES CHARGED FOR A SIMILAR SERVICE IN SUBURBAN ATLANTA MR FISHMAN WANTS CONGRESS TO BLOCK ANY PRICING DISPARITY BETWEEN RURAL AND URBAN AREAS A SOUTH CENTRAL BELL SPOKESWOMAN SAID THE PROPOSED TARIFF IS SUBSTANTIALLY LOWER THAN MR FISHMAN CITED AND CALLERS MIGHT PLACE 10 OR MORE CALLS A MONTH WITH A CHARGE OF ONLY 30 CENTS A CALL BIGGER INFORMATIONSERVICES COMPANIES ALSO EXPRESSED WORRIES THAT THE LEGISLATION'S DEFINITION OF ELECTRONIC PUBLISHING IS TOO NARROW AND THAT FUTURE TWOWAY SERVICES MIGHT ESCAPE REGULATION JAMES CULLEN BELL ATLANTIC CORP'S PRESIDENT COUNTERED THAT THE BROOKSDINGELL DEFINITION STRIKES THE RIGHT BALANCE AND THAT SERVICES SUCH AS ELECTRONIC GAMES AND OTHER INTERACTIVE ENTERTAINMENT SHOULDN'T BE INCLUDED MEANWHILE STAN MARTIN EXECUTIVE DIRECTOR OF A BURGLAR ALARM TRADE ASSOCIATION TOLD LAWMAKERS THAT THE BROOKSDINGELL BILL'S SIXYEAR BAN ON THE BELLS ENTERING THE ALARM BUSINESS IS CRITICAL THE ALARM COMPANIES ALSO WANT THE BILL TO REQUIRE THE BELLS TO STOP OFFERING ANY ALARM SERVICE TELECOMMUNICATIONS EQUIPMENT MAKERS ALSO WANT CHANGES JOHN MAJOR CHAIRMAN OF THE TELECOMMUNICATIONS INDUSTRY ASSOCIATION AND A MOTOROLA INC SENIOR VICE PRESIDENT TOLD PANEL MEMBERS THAT THE BELLS SHOULD BE ALLOWED INTO THE MANUFACTURING ARENA MORE SLOWLY THAN THE BILL ENVISIONS UNLESS THE BELLS FACE COMPETITION IN THE MARKET FOR LOCAL TELEPHONE SERVICE HE WARNED THEY RETAIN BOTH THE ABILITY AND THE INCENTIVE TO COMPETE UNFAIRLY 9402090089 940209 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND AN ADDITIONAL 340569 WORKERS JOINED GERMANY'S JOBLESS RANKS IN JANUARY RAISING THE TOTAL TO MORE THAN FOUR MILLION AMID THE LINGERING RECESSION THE GOVERNMENT ANNOUNCED THAT UNEMPLOYMENT IN WESTERN GERMANY ROSE TO 2736068 WORKERS OR 88 OF THE TOTAL CIVILIAN WORK FORCE FROM 2513711 IN DECEMBER WHEN THE JOBLESS RATE WAS 81 IN EASTERN GERMANY 1293423 OR 17 OF THE PEOPLE WERE LISTED AS UNEMPLOYED UP FROM 1175211 OR 154 A RATE FOR ALL OF GERMANY WASN'T PROVIDED BUT ECONOMISTS PUT THE JANUARY FIGURE AT NEAR 10 OR MORE WITH 4029491 OUT OF WORK WITH THE FOURMILLION MARK BREACHED THE JOBS CRISIS AND ATTENDANT FEARS OF SOCIAL UNREST AND RISING CRIME RATES LOOM AS MAJOR LIABILITIES FOR CHANCELLOR HELMUT KOHL'S BID FOR REELECTION IN OCTOBER A RECENT POLL CONDUCTED BY FOCUS MAGAZINE IDENTIFIED UNEMPLOYMENT AS GERMANY'S PRIMARY POLITICAL ISSUE BY FAR TAIWAN EAGER TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE PLANS TO EASE ITS BAN ON RICE IMPORTS GOVERNMENT OFFICIALS SAID TAIWAN WILL LET IN A SMALL QUANTITY OF RICE AFTER ITS ENTRY INTO THE GATT WHICH IS EXPECTED AS EARLY AS THE END OF THIS YEAR THE OFFICIALS SAID IMPORTS WILL GRADUALLY INCREASE TO ACCOUNT FOR AS MUCH AS 4 OF LOCAL CONSUMPTION IN 10 YEARS TAIWAN CONSUMES 16 MILLION TONS OF RICE A YEAR THE IMPORT BAN EXISTS TO PROTECT THE COUNTRY'S RICE FARMERS OFFICIALS ALSO VOWED TO END TAIWAN'S BAN ON JAPANESE CIGARETTES AND WINE RUSSIAN INDUSTRIAL OUTPUT FELL 16 IN 1993 FROM 1992 DETERIORATING FASTER THAN ANY OTHER MAJOR ECONOMIC SECTOR GOVERNMENT DATA INDICATED BY COMPARISON OVERALL GROSS DOMESTIC PRODUCT DECLINED 12 CONSTRUCTION CONTRACTED BY 7 WHILE AGRICULTURAL PRODUCTION DROPPED 4 ON A BRIGHTER NOTE RUSSIANS' INCOMES AFTER ADJUSTING FOR THE EFFECT OF RAMPANT INFLATION GREW 9 IN 1993 FROM A YEAR EARLIER THE STATE STATISTICS COMMITTEE SAID EUROPEAN UNION FOREIGN MINISTERS ENDING A STANDOFF AGREED TO REPLACE MORE THAN 6400 NATIONAL IMPORT QUOTAS WITH A HANDFUL OF EUWIDE QUOTAS DESIGNED TO PROTECT LOWTECH INDUSTRIES THE MINISTERS AGREED TO REPLACE NATIONAL QUOTAS WITH QUOTAS ON JUST SEVEN CATEGORIES AFFECTING CHINESE GOODS FOOTWEAR GLASSWARE PORCELAIN OTHER TABLEWARE RADIOS TOYS AND GLOVES A PROPOSAL TO PLACE QUOTAS ON BICYCLES WAS REJECTED UNDER THE AGREEMENT 35 MILLION PAIRS OF RUBBERSOLE SHOES CAN BE IMPORTED FROM CHINA BUT SHOES WORTH MORE THAN ABOUT 13 ARE EXCLUDED FROM THE RESTRICTIONS RUSSIA'S BIGGEST VODKA DISTILLERY REELING UNDER THE IMPACT OF FOREIGN COMPETITION AND HEAVY TAXES SAID IT SENT ITS STAFF OF MORE THAN 700 ON TWO WEEKS' UNPAID LEAVE MOSCOW'S KRISTALL PLANT WHICH MANUFACTURES STOLICHNAYA WARNED THAT TAXES ARE DRIVING IT OUT OF BUSINESS RUSSIAN VODKA SUBJECT TO DUTIES OF AS MUCH AS 90 THAT TOOK EFFECT IN DECEMBER HAS BECOME SO EXPENSIVE THAT MANY CONSUMERS ARE TURNING TO CUTRATE FOREIGN VODKA A GOVERNMENT COMMISSION REPORTEDLY IS CONSIDERING A TAX CUT TO HELP DOMESTIC DISTILLERS BRAZIL'S CONGRESS APPROVED A KEY PART OF THE GOVERNMENT'S ECONOMIC STABILIZATION PLAN VOTING 38838 TO ESTABLISH A 16 BILLION EMERGENCY FUND FINANCE MINISTER FERNANDO HENRIQUE CARDOSO THREATENED TO RESIGN LAST WEEK WHEN CONGRESS FAILED TO ASSEMBLE A QUORUM TO VOTE ON THE FUND MR CARDOSO INSISTS THE EMERGENCY FUND IS INTEGRAL TO HIS ECONOMIC PROGRAM BECAUSE MOST OF THE BUDGET IS ALREADY EARMARKED AND THE GOVERNMENT NEEDS SUFFICIENT FUNDING TO MEET PRESSING SOCIAL AND HEALTH NEEDS THE MINISTER WHO IS EMERGING AS A POSSIBLE PRESIDENTIAL CANDIDATE STILL FACES BATTLES ON OTHER PARTS OF HIS PLAN OPENING OF THE ENGLISH CHANNEL TUNNEL BETWEEN BRITAIN AND FRANCE HAS BEEN DELAYEDAGAIN EUROTUNNEL PLC THE ANGLOFRENCH CONCERN BUILDING THE TUNNEL SAID IT WON'T MEET ITS TARGET OPENING DATE OF MAY 8 FOR PASSENGER SERVICE AND HAS PUSHED BACK THE START OF FREIGHT SERVICE TO LATE SPRING FROM MARCH 7 EUROTUNNEL OFFICIALS SAID TESTS ON THE TRAINS AND THE RAIL SYSTEM WERE TAKING LONGER THAN EXPECTED EUROTUNNEL ALREADY HAS SOLD SEVERAL THOUSAND TICKETS FOR MAY AND JUNE RIDES THE COMPANY SAID PASSENGERS MAY SEEK REFUNDS OR USE THEIR TICKETS WHEN THE TUNNEL FINALLY OPENS THE TUNNEL ORIGINALLY SLATED TO OPEN IN DECEMBER HAS SUFFERED FROM SEEMINGLY ENDLESS COST OVERRUNS MANAGEMENT PROBLEMS AND CONTRACTOR INFIGHTING COSTS OF THE PROJECT ARE BELIEVED TO BE ABOUT 126 BILLION DOUBLE ORIGINAL ESTIMATES THE SALVATION ARMY IS ASKING BRITISH WOMEN TO DONATE THEIR SECONDHAND BRAS FOR DISTRIBUTION OVERSEAS AN OFFICER FOR THE INTERNATIONAL CHRISTIAN AID ORGANIZATION SAID THE UNDERGARMENTS ARE VERY EXPENSIVE IN RUSSIA AND ARE CONSIDERED A STATUS SYMBOL IN INDIA AND PAKISTAN 9402090088 940209 WIDE GAPS IN WALL STREET BONUSES SPARK BITTERNESS AND WAVES OF JOB HOPPING BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET IS DOLING OUT THE FATTEST BONUS PAYCHECKS IN THE BROKERAGE INDUSTRY'S HISTORY BUT ON MILLIONAIRE'S ROW THE TENANTS ARE GROUCHY BIG DISCREPANCIES BETWEEN TOP PRODUCERS AND THE RANKANDFILE BANKER OR TRADER PLUS NEW STRINGENT AND SUBJECTIVE PAY CRITERIA ARE SPARKING BITTERNESS AND A ROUND OF BROKERAGEHOUSE MUSICAL CHAIRS ON WALL STREET BONUSES ACCOUNT FOR A DISPROPORTIONATE 75 OR MORE OF TOTAL ANNUAL COMPENSATION MANY INVESTMENT BANKERS TRADERS AND ANALYSTS GOT THEIR NUMBER IN RECENT DAYS OR WEEKS AND FOR MOST IT WAS A SWEET 15 TO 30 ABOVE YEAREARLIER BONUSES WHICH WERE ALREADY 20 ABOVE 1991 LEVELS THE BULGING PAY ENVELOPES REFLECT WALL STREET'S RECORD YEAR FOR UNDERWRITING NEW STOCK AND BOND ISSUES OVER 1 TRILLION CAME TO MARKET BUT THE CORPORATE SHARETHEWEALTH MENTALITY OF THE 1980S DOESN'T EXIST ANYMORE SAYS JOAN ZIMMERMAN EXECUTIVE VICE PRESIDENT AT GZ STEPHENS INC A NEW YORK EXECUTIVESEARCH FIRM WHILE THEIR BONUSES MADE SOME PEOPLE VERY VERY HAPPY SHE SAYS THIS YEAR WE'VE SEEN THE LARGEST GAPS EVER BIG VAST DIFFERENCES BETWEEN COMPENSATION FOR THE STARS AND FOR THE COGS SHED NO TEARS FOR THE MIDLEVEL INVESTMENT BANKER HOWEVER SECURITIESFIRM EXECUTIVES SAY THAT THIS YEAR'S AVERAGE BONUS JUMP MEANS A TYPICAL INVESTMENT BANKER WITH A SALARY OF 150000 AND A BONUS LAST YEAR OF 725000 WILL GET A 906000 BONUS THIS YEAR FOR A TOTAL PAY PACKAGE CRACKING 1 MILLION IN THE PAST SECURITIES FIRMS TRIED TO KEEP COMPENSATION FOR MIDLEVEL BANKERS BELOW SEVEN FIGURES BUT THE STREET'S RAGING PROFITS IN 1993 THREW RESTRAINT OUT THE WINDOW THE RUB THOUGH IS THAT FIRMS ARE PAYING LESS OF THE 1993 BONUSES IN CASH OR IN STOCK OPTIONS INSTEAD STOCK GRANTS WITH STRINGS ATTACHED ARE BECOMING INCREASINGLY COMMON CONSIDER SALOMON BROTHERS THE BROKERAGE UNIT OF SALOMON INC WHICH HAS COMPLETELY OVERHAULED ITS COMPENSATION SYSTEM TO DIRECTLY LINK BONUSES TO EACH BUSINESS UNIT'S PRODUCTIVITY AND PROFITS NOT TO THE FIRM'S OVERALL RESULTS THE COMPENSATION CHANGES WERE MADE TO MAKE PEOPLE FEEL LIKE OWNERS AND TO MAKE PEOPLE MORE DIRECTLY ACCOUNTABLE FOR THE RESULTS OF THEIR ACTIONS BOTH IN RAISING REVENUES AND CUTTING COSTS SAYS SALOMON CHAIRMAN ROBERT DENHAM AT SALOMON BONUSES FOR STAR PERFORMERS IN POWERHOUSE AREAS WERE UP AS MUCH AS 40 IN PART TO STEM THE WAVE OF DEFECTIONS THAT OFTEN FOLLOW SHARPLY LOWER YEAREND BONUSES BUT A 3 MILLION SALOMON BANKER WILL END UP BEING PAID 42 OF THAT IN SALOMON STOCK AT A 15 DISCOUNT WHICH IS TIED UP FOR FIVE YEARS STOCK OPTIONS HAVE BEEN PHASED OUT PARTIAL STOCK AWARDS WERE ALSO MADE AT FIRMS SUCH AS MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC BUT THEY WEREN'T POPULAR EVEN WITH SHARE PRICES AT A DISCOUNT TO THE MARKET SOME OF WALL STREET'S OWN ANALYSTS CONTEND THAT THE RALLY IN BROKERAGE SHARES IS OUT OF STEAM AT MERRILL LYNCH THE LARGEST US BROKERAGE FIRM GENEROUS BONUSES OF 25 ABOVE LAST YEAR'S LEVELS WERE THE NORM BUT INVESTMENT BANKERS ARE SMARTING BECAUSE THE RETAIL SIDE OF THE BUSINESS WON THE LION'S SHARE OF THE BOOTY AT GOLDMAN SACHS & CO EVEN JUNIOR PARTNERS TOOK HOME A REPORTED 5 MILLION EACH COMPENSATION WAS ALSO QUITE GENEROUS AT BOUTIQUE DILLON READ & CO WHERE MERGERS AND ACQUISITIONS HAD THE BEST YEAR IN THE FIRM'S HISTORY AT CS FIRST BOSTON A UNIT OF CS HOLDING ANXIOUS TO MAKE UP FOR PAST YEARS WHEN ITS COMPENSATION LAGGED BEHIND THE INDUSTRY 25 TO 40 BONUS INCREASES WERE COMMON LEHMAN BROTHERS INC'S BONUSES WERE AMONG THE MOST RESTRAINED AT 10 TO 15 ABOVE YEAREARLIER LEVELS SOME OF THAT IN PHANTOM STOCK LEHMAN EMPLOYEES ARE IN SOMETHING OF A FINANCIAL LIMBO UNTIL LEHMAN'S PARENT AMERICAN EXPRESS CO SPINS IT OFF AS A PUBLIC COMPANY IN LATE APRIL OR MAY EMPLOYEES AT OTHER COMPANIES SUCH AS MORGAN STANLEY & CO AND SMITH BARNEY SHEARSON THE BROKERAGE UNIT OF TRAVELERS INC WILL HEAR THEIR BONUS NUMBERS IN THE NEXT FEW DAYS AT DONALDSON LUFKIN & JENRETTE A UNIT OF EQUITABLE COS BONUSES FOR TRADERS AND BANKERS ARE EXPECTED TO BE UP ABOUT 20 OVER 1992 LEVELS ACCORDING TO WALL STREET OFFICIALS AND AS USUAL WHEN THE BONUS CHECKS ARE CUT AT MOST FIRMS ON OR BEFORE FEB 28 THE JOBHOPPING BEGINS EXECUTIVE RECRUITERS SAY THIS HAS BEEN THEIR BUSIEST SEASON IN MONTHS SMITH BARNEY WHICH LURED AWAY MERGERS SUPERSTAR ROBERT GREENHILL LAST JUNE FROM MORGAN IS SEEN RAIDING MORGAN AGAIN SMITH BARNEY OFFICIALS SAY THE FIRM PLANS TO ADD 30 PEOPLE IN THE NEXT TWO MONTHS AND A TOTAL OF 75 BY YEAR END SMITH BARNEY'S SIREN SONG TO POTENTIAL HIRES WE'LL PAY FOR PERFORMANCE REGARDLESS OF SENIORITY NOT LIKE TRADITIONBOUND MORGAN MORGAN'S REPLY SMITH BARNEY'S RAPIDLY EXPANDING INVESTMENTBANKING OPERATION IS UNPROVEN AND ISN'T IN POSITION FOR A DOWN MARKET SEVERAL CS FIRST BOSTON EMPLOYEES ARE ALSO OUT JOB HUNTING PERHAPS FILLING SOME GAPS AT MORGAN ALSO ON THE MOVE OR ATTEMPTING TO BE EXECUTIVE RECRUITERS SAY ARE PRUDENTIAL SECURITIES INC BROKERS SEEKING TO JUMP SHIP AS LIMITEDPARTNERSHIP WOES MOUNT AT THIS UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA AMONG BROKERAGE FIRMS THAT ARE HIRING THE SPECIALTIES MOST IN DEMAND ARE DERIVATIVES DEBT RESTRUCTURING AND EMERGING MARKETS IN PARTICULAR BANKERS WITH EASTERNBLOC EXPERTISE SAYS ABRAM CLAUDE JR MANAGING DIRECTOR IN CHARGE OF INVESTMENTBANKING PRACTICES AT RUSSELL REYNOLDS ASSOCIATES INC ANALYSTS SPECIALIZING IN HEALTH REALESTATE INVESTMENT TRUSTS AND INFORMATION SUPERHIGHWAY COMPANIES CAN ALMOST NAME THEIR OWN PRICE RECRUITERS SAY ALSO BEING PAID BIGGER BUCKS CURRENTLY ARE TECHIES WHO DEVELOP AND MONITOR COMPUTERTRADING AND TRACKING SYSTEMS FOR BROKERAGE FIRMS NOT ALL WALL STREET DEPARTURES ARE VOLUNTARY BOTH FIRST BOSTON AND MERRILL LYNCH HAD RECENT HOUSECLEANINGS OF MANAGING DIRECTORS BUT MANY OF THOSE WALKING ARE MOTIVATED BY DISTRESS AT THEIR BONUSES EXECUTIVE RECRUITERS SAY DESPITE PAYCHECKS THAT WOULD BE CONSIDERED MUNIFICENT IN MOST BUSINESSES LETDOWNS AND STINGING DISAPPOINTMENTS WERE THE ORDER OF THE DAY FOR MANY TRADERS ANALYSTS AND INVESTMENT BANKERS WHO HAD EXPECTED TO PARTICIPATE MORE FULLY AND INTIMATELY IN THE RAGING WALL STREET BOOM SOME INDIVIDUAL MANAGERS DIDN'T MANAGE EXPECTATIONS WELL SAYS ONE TOPLEVEL EXECUTIVE HOW BIG WERE THE BONUS DISCREPANCIES FOR MIDLEVEL WALL STREET ANALYSTS THE BONUSES RANGED FROM ABOUT 60000 A PALTRY SUM GIVEN AS A HINT TO PRINT UP RESUMES TO 250000 FOR ANALYSTS WITH POWERHOUSE CLIENTS OR WHO COULD PROVE THEY HAD BROUGHT REVENUE TO THE FIRM SENIOR ANALYSTS CAN EARN TWICE THAT BONUS IF THEY ARE TOPRANKED IN INSTITUTIONAL INVESTOR MAGAZINE'S ANNUAL POLL AND SINCE EVEN AN UNEXCEPTIONAL BANKER OR TRADER THRIVED IN 1993'S VOLATILE MARKETS MANAGERS DEMANDED THAT EMPLOYEES WHO WANTED TOP DOLLAR PROVE THEY HAD OPENED UP NEW BUSINESSES CUT COSTS OR RISK FOR THE COMPANY OR WORKED ON TEAM PROJECTS WITH OTHER DIVISIONS BONUSES HAVE TAKEN ON A BIGGER FINANCIAL AND MOTIVATIONAL ROLE SINCE THE STOCKMARKET CRASH OF OCTOBER 1987 AND THE SUBSEQUENT MASS FIRINGS IN THE BROKERAGE INDUSTRY WALL STREET HAS SHOWN AN INABILITY TO MANAGE DOWN MARKETS WHEN YOU PRODUCE BIG YOU WANT YOUR SHARE BECAUSE THE RETRENCHMENT IN THE LATE 1980S SHOWED THAT WHEN YOU DON'T PRODUCE YOU'RE OUT SAYS ONE WALL STREET VETERAN MANAGING DIRECTOR 9402090087 940209 STILL TOO EASY BY ALLAN H MELTZER EARLY THIS WEEK THE MARKET ACTED AS IF THE FED HAD SLAIN INFLATION WITH ITS FRIDAY QUARTERPOINT INCREASE IN THE INTEREST RATE BUT BEFORE WE PRONOUNCE INFLATION DEAD AFTER A SINGLE STROKE OF THE FED SWORD THREE CAUTIONARY NOTES ARE IN ORDER THE FIRST IS THAT WE MUST REMEMBER THAT THE SAME BOND MARKET AND THE SAME FORECASTERS WHO ARE NOW POOHPOOHING INFLATION WERE TELLING A DIFFERENT TALE EARLY LAST YEAR IN GENERAL NEITHER THE BOND MARKET NOR THE ECONOMISTS FORECAST ACCURATELY LONGTERM INTEREST RATES DID NOT ANTICIPATE THE INFLATION OF THE 1970S OR THE DISINFLATION OF THE 1980S INTEREST RATES REMAINED BELOW THE INFLATION RATE DURING MUCH OF THE 1970S AND AT 11 OR 12 IN 1984 OR 1985 AFTER INFLATION HAD FALLEN TO ABOUT 4 IT IS NOT THAT THE FORECASTERS ARE INCOMPETENT IT IS THAT THE FACTORS DRIVING PRICE CHANGES OVER SHORT SPANS HAVE A LARGE RANDOM COMPONENT INDEED THE RECENT VOLATILITY OF LONGTERM INTEREST RATES SHOWS THAT BONDHOLDERS PROPERLY HAVE LITTLE CONFIDENCE IN FORECASTS OF CONTINUED LOW INFLATION SECOND INFLATION IS NOT LIKE AN ACUTE APPENDIX THAT WE REMOVE ONCEANDFORALL WITH AN INTERESTRATE SHIFT INFLATION SLOWED SEVERAL TIMES IN THE PAST 30 YEARS IN 1986 CONSUMER PRICES ROSE ONLY 11 BUT BY 1988 PRICES WERE RISING AT 45 IN 1976 INFLATION FELL TO 49 BUT IT WAS BACK IN DOUBLE DIGITS BY 1979 PRESIDENT NIXON'S PRICE CONTROLS HELD REPORTED INFLATION BELOW 35 IN 197172 TWO YEARS LATER INFLATION WAS ABOVE 12 IN EACH OF THESE PERIODS AND OTHERS FEDERAL RESERVE POLICY WAS TOO EXPANSIVE LAST WEEK'S FED ACTION WAS A SMALL BELATED STEP IN THE RIGHT DIRECTION BUT IT WAS NOT ENOUGH THERE IS A THIRD INDICATOR THAT INFLATION STILL THREATENS IT IS THE FACT THAT GROWTH OF THE MONETARY BASE BANK RESERVES AND CURRENCY SUPPLIED BY THE FEDERAL RESERVE HAS REMAINED AT A HIGH 910 FOR THE PAST TWO YEARS SUCH RATES IN ECONOMISTS' LANGUAGE REPRESENT RAPID MONEY GROWTH OR THE SEEDS OF CLASSIC INFLATION SOME ARGUE THIS GROWTH DOESN'T MATTER BECAUSE MUCH OF THE MONEY IS ABSORBED IN THE FORMER SOVIET UNION AFRICA AND PARTS OF LATIN AMERICA WHERE DOLLARS CIRCULATE WIDELY BUT IT IS NOT JUST CURRENCY GROWTH THAT IS WORRISOME BANK RESERVES HAVE BEEN RISING RAPIDLY AND MONEY CURRENCY AND DEMAND DEPOSITS SHOWS SIMILAR RATES OF INCREASE FOR THE PAST TWO YEARS PUT IN SIMPLE LANGUAGE THESE RATES MEAN THAT AMERICANS HAVE MONEY TO SPEND AND MAY SPEND IT SOON BUILDING INFLATION EACH OF THESE MEASURES TELLS US THAT THE NECESSARY CONDITION FOR RISING INFLATION IS IN PLACE ALREADY SOME COMMODITY PRICES ARE WHISPERING THAT HIGHER INFLATION IS AHEAD IN THE PAST YEAR OIL PRICES WERE DOWN ALMOST 25 BUT DOW JONES FUTURES PRICES ROSE 15 AND THE SPOT INDEX OF CURRENT COMMODITY PRICES STARTED TO RISE A USEFUL RULE OF THUMB IS THAT IT TAKES TWO TO THREE YEARS OF CLASSIC RAPID MONEY GROWTH BEFORE INFLATION STARTS TO RISE AS IN MANY FORECASTS OF SHORTTERM CHANGES THE DIRECTION OF CHANGE IS MORE CERTAIN THAN ITS TIMING THERE ARE HOWEVER ONLY TWO OUTCOMES POSSIBLE FOR THE US ECONOMY IF MONEY CONTINUES TO GROW AT OR NEAR THE 10 RATE OF RECENT YEARS EITHER PEOPLE WILL WILLINGLY MAKE RELATIVELY LARGE ADDITIONS TO THEIR CASH BALANCES OR THEY WILL SPEND THE MONEY ON GOODS AND SERVICES IT'S THE LATTER POSSIBILITY FASTER SPENDING GROWTH THAT MAKES BONDHOLDERS NERVOUS ABOUT INFLATION THROUGH MOST OF LAST YEAR SPENDING GREW SLOWLY THE PUBLIC ABSORBED EXCESS MONEY GROWTH BY INCREASING ITS CASH BALANCES SOME INVESTORS BOUGHT STOCKS BONDS AND MUTUAL FUNDS PUSHING BOND PRICES DOWN AND STOCK PRICES UP THE SELLERS OF THESE STOCKS AND BONDS DID NOT RUSH TO SPEND THE MONEY THEY RECEIVED IN EXCHANGE SO AVERAGE CASH BALANCES INCREASED IF THE PUBLIC REPEATS THAT BEHAVIOR THIS YEAR THE RISE IN INFLATION WILL AGAIN BE DELAYED IF THEY SPEND MORE RAPIDLY INFLATION WILL RISE FEDERAL RESERVE POLICY IS INCONSISTENT WITH THIS SITUATION AND THE CURRENT INFLATION RATE A 025 INCREASE IN THE FEDERALFUNDS RATE DOES NOT REMOVE THE INCONSISTENCY IN AN ECONOMY LIKE OURS WHERE OUTPUT GROWS AT AN AVERAGE RATE OF 2 TO 3 INFLATION CANNOT REMAIN AT 3 IF MONEY GROWS AT 10 TO GAUGE HOW MUCH INFLATION WE SHOULD EXPECT WE CAN COMPARE GROWTH OF THE NOMINAL MONETARY BASE WHICH THE FEDERAL RESERVE PRODUCES WITH GROWTH OF THE PUBLIC'S WILLINGNESS TO HOLD BASE MONEY SHOWN BY GROWTH OF REAL OR DEFLATED BASE MONEY THE CHART SHOWS THESE DATA SEE ACCOMPANYING ILLUSTRATION WSJ FEB 9 1994 ENTIRELY AS A MATTER OF ARITHMETIC THE DIFFERENCE BETWEEN THE TWO LINES WOULD BE THE ACTUAL RATE OF INFLATION IF BOTH NOMINAL AND REAL BASE WERE MEASURED FOR THE SAME ONE OR THREEYEAR PERIOD THE DIFFERENCE BETWEEN THE TWO LINES IS THE STEADY OR EQUILIBRIUM RATE OF INFLATION WHEN THE FED REACHES ITS GOAL OF INFLATION AT 02 THE DISTANCE BETWEEN THE TWO LINES IS NO MORE THAN TWO PERCENTAGE POINTS NEAR THE END OF 1993 THE DIFFERENCE BETWEEN THE TWO LINES THE EQUILIBRIUM RATE OF INFLATION WAS 45 PERCENTAGE POINTS IT HAS REMAINED BETWEEN 45 AND 55 PERCENTAGE POINTS SINCE EARLY 1992 THIS IS ALSO THE INFLATION RATE THAT THE PUBLIC ANTICIPATED OVER THE NEXT 10 YEARS IN SURVEYS TAKEN BY THE UNIVERSITY OF MICHIGAN EARLY LAST YEAR ALTHOUGH THE ACTUAL RATE OF INFLATION HAS REMAINED BELOW THE EQUILIBRIUM RATE THE EQUILIBRIUM RATE HAS NOT BEEN REDUCED THE PUBLIC'S WILLINGNESS TO ADD TO ITS CASH BALANCES SHOWN BY THE GROWTH OF REAL BASE MONEY HAS HELD INFLATION DOWN OF COURSE DIVERGENT MOVEMENTS OF THE ACTUAL AND EQUILIBRIUM RATES ARE NOT UNUSUAL GENERALLY THE ACTUAL RATE MOVES TOWARD THE EQUILIBRIUM RATE IN TWO OR THREE YEARS THE CHART SHOWS THAT FROM MID1986 TO THE END OF 1987 THE EQUILIBRIUM INFLATION RATE WAS 4 TO 5 THE ACTUAL RATE REACHED THIS RANGE IN 198990 DESPITE THE OIL PRICE INCREASE AT THE START OF THE GULF WAR INFLATION FELL IN 1991 THE REASON IS THAT THE EQUILIBRIUM RATE OF INFLATION HAD BEEN BROUGHT DOWN TO LESS THAN 3 BY TIGHTER MONETARY POLICY SLOWER BASE GROWTH IN 198990 LAST YEAR THE FED RAISED ITS FORECASTS OF INFLATION BUT TOOK NO ACTION TO REDUCE INFLATION IT FAILED TO TIGHTEN MONEY THIS SUGGESTS THAT THE MEMBERS DO NOT TAKE THEIR PROMISES SERIOUSLY THE FED MAY LOWER ITS PROJECTIONS THIS YEAR BUT IT IS ACTIONS NOT PROMISES THAT MATTER THE ACTIONS HAVE BEEN SO SLOW IN COMING AS TO BE IMPRUDENT THE CURRENT FED IS STILL BEHIND THE CURVE ONE REASON IS THAT IT PLACES GREAT WEIGHT ON SUCH LAGGING CYCLICAL INDICATORS AS MONTHLY CHANGES IN UNEMPLOYMENT AND INFLATION EFFECTIVE MONETARY POLICY DOES NOT REQUIRE SUCH CAREFUL CONTROL OF TIMING THE LOWCOST WAY TO MAINTAIN GROWTH WITH LOW INFLATION IS TO LOWER MONEY GROWTH BEFORE INFLATION STARTS TO RISE BEFORE FRIDAY'S BELATED MOVE A PRUDENT POLICY WOULD HAVE SLOWED GROWTH OF THE MONETARY BASE OR BANK RESERVES TO AN ANNUAL RATE OF 7 TO 8 NO LATER THAN LAST YEAR IT MAY BE TOO LATE TO LOCK IN ALL OF THE RECENT REDUCTIONS IN THE INFLATION RATE BUT IT WILL CERTAINLY BE TOO LATE IF THE FED CONTINUES ITS HESITANT POLICY SEVERAL FOREIGN CENTRAL BANKS ENGLAND GERMANY NEW ZEALAND HAVE NOW ADOPTED LONGTERM PRICE STABILITY AS THEIR PRIMARY OR ONLY GOAL THEY SET TARGETS TO REDUCE INFLATION GRADUALLY OVER TWO OR THREE YEARS AT LAST WEEK'S MEETING THE FED SET THE PROJECTIONS FOR INFLATION AND GROWTH THAT IT WILL ANNOUNCE AT CONGRESSIONAL HEARINGS LATER THIS MONTH IF IT TAKES ITS ANNOUNCED GOAL OF ENDING INFLATION SERIOUSLY IT SHOULD TELL US HOW AND WHEN IT PROPOSES TO GET THERE MR MELTZER IS A PROFESSOR OF POLITICAL ECONOMY AT CARNEGIE MELLON UNIVERSITY 9402090086 940209 LETTERS TO THE EDITOR HERNANDEZ & O'HARA'S BLUEEYED FRECKLED SON IN RESPONSE TO QUANDARY OVER ONE TERM TO COVER MYRIAD PEOPLE PEOPLE PATTERNS JAN 18 THE LAST TIME I LOOKED THE CENSUS BUREAU RECKONED ME AN HISPANICSURNAMED INDIVIDUAL NOT A BAD CONCEPT SURE IT HAD FLAWS WHAT IF THE FATHER IS AN O'HARA AND THE MOTHER A HERNANDEZ HOW ABOUT A GERMANSURNAMED GERMANSPEAKING BLUEEYED FRECKLED REDHEAD WHO EMIGRATED FROM CHILE BUT HISPANICSURNAMED INDIVIDUAL HAD A CHARMING BUREAUCRATIC AWKWARDNESS AND IN MY CASE AT LEAST IT WAS CONSPICUOUSLY APPROPRIATE THE NEWER TERMS DON'T SEEM LESS FLAWED OUR GERMANSURNAMED CHILEANAMERICAN LATINO WITH RED HAIR BLUE EYES AND FRECKLES IS STILL NOT A CLEAN FIT NOR IS THE HISPANICSURNAMED MEXICANAMERICAN INDIVIDUAL WHO GREW UP SPEAKING ONLY ENGLISH IN PITTSBURGH AND NOW LIVES IN MISSISSIPPI MAYBE WE SHOULD STICK WITH THE SURNAME CONCEPT UNTIL A NEW LINNAEUS HAPPENS UPON A MORE USERFRIENDLY ETHNIC PHYLUM LAMENTABLY THE SURNAME CONCEPT CAN ALSO BE USED AS A MARKETING TOOL I'VE GOTTEN CALLS FROM A COMPANY PUSHING ITS LONGDISTANCE TELEPHONE SERVICES AND FEATURING SPANISHSPEAKING SALESPEOPLE WHY ME AM I OVERLY TOUCHY OR DO ALL THE WESLOWSKYS OUT THERE HAVE TO PUT UP WITH THE SAME THING OR IS IT MY NAME 9402090085 940209 MARKETING & MEDIA MAGAZINEUNIT POSTS AT NEWS CORP GIVEN TO BARLETTA DISNEY NEW YORK NEWS CORP SIGNALED ITS INTENTION TO EXPAND IN MAGAZINES BY CREATING POSTS AT A NEW MAGAZINE DIVISION JOSEPH BARLETTA THE 57YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEWS CORP'S TV GUIDE WAS NAMED TO THE ADDED POST OF PRESIDENT OF MURDOCH MAGAZINES ANTHEA DISNEY THE 48YEAROLD EDITORINCHIEF OF TV GUIDE WILL ALSO BECOME EDITORIAL DIRECTOR OF MURDOCH MAGAZINES NEWS CORP HASN'T HAD A SEPARATE MAGAZINE DIVISION SINCE SELLING MOST OF ITS MAGAZINES IN 1990 AND THE ONLY MAGAZINE IT NOW PUBLISHES BESIDES TV GUIDE IS A WOMAN'S MAGAZINE MIRABELLA THE MAGAZINES HAD BEEN OVERSEEN BY PATRICK PURCELL WHO ALSO RAN NEWS CORP'S US NEWSPAPERS AND ITS NEWSPAPER ADVERTISINGINSERT BUSINESS MR PURCELL JUST AGREED TO BUY NEWS CORP'S BOSTON HERALD NEWSPAPER AND IS LEAVING THE COMPANY TO RUN IT THE ANNOUNCEMENT OF NEW MAGAZINE EXECUTIVES CAME JUST A DAY AFTER NEWS CORP PULLED THE PLUG ON A MAGAZINE IT HAD BEEN TESTING MARRIED WOMAN ONLY ONE ISSUE CAME OUT BUT SALES WERE DISAPPOINTING THE COMPANY SAID MR BARLETTA WHO JOINED NEWS CORP SIX MONTHS AGO AFTER A LONG CAREER IN NEWSPAPERS SAID THE RESPONSE TO MARRIED WOMAN WAS UNDERWHELMING BUT THERE WILL BE OTHER MAGAZINES STARTED AND ACQUIRED ANTHEA AND I WOULDN'T HAVE TAKEN THESE POSITIONS IF THERE WASN'T REAL COMMITMENT FROM NEWS CORP AND CHAIRMAN RUPERT MURDOCH TO GROW IN MAGAZINES MS DISNEY ADDED WE WANT TO APPLY THE EXPERTISE WE ALREADY HAVE AT NEWS CORP TO MAGAZINES AND THAT MEANS WE'LL AIM PRIMARILY AT THE AREAS OF ENTERTAINMENT AND NEWS SEPARATELY THE FOUNDER AND CREATOR OF MARRIED WOMAN KELLY MCGEE SAID SHE IS SEARCHING FOR ANOTHER PUBLISHER TO FUND HER MAGAZINE 9402090084 940209 LEGAL SWAMP SUPERFUND SITE SPAWNS A SPATE OF LITIGATION THOUGH NOT A CLEANUP RESIDENTS CITE HEALTH WOES AND OPPOSE INCINERATOR TO BURN THE POLLUTANTS PASSING AROUND THE LIABILITY BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TO CAROL WOMACK THE ONLY THING WORSE THAN THE DANGEROUS CHEMICALS OOZING UNDERGROUND DOWN THE STREET FROM HER FORMER HOME IS HOW HER NEIGHBORS REACTED ONE FAMILY SUED THE DEVELOPER OF THE SUBDIVISION ARGUING THEY SHOULD HAVE BEEN WARNED ABOUT THE CHEMICALS BUT STILL BOUGHT ANOTHER NEARBY HOUSE WHICH THEY LATER MOVED INTO AND SUED AGAIN ANOTHER COUPLE SAID THEIR HOUSE WAS UNSAFE MOVED OUT THEN RENTED IT TO ANOTHER FAMILY STILL A THIRD USED SETTLEMENT MONEY TO BUILD A RAMBLING ADDITION THERE'VE BEEN SO MANY LAWSUITS AND SO MUCH CRAZINESS SAYS MRS WOMACK A 39YEAROLD FOURTHGRADE TEACHER WHO ABANDONED HER HOME LAST JULY I DON'T THINK ANYONE HAS REALLY FOCUSED ON WHAT IT WILL TAKE TO CLEAN IT UP KNOWN AS BRIO THE DUSTY 58ACRE PATCH ADJACENT TO MRS WOMACK'S OLD NEIGHBORHOOD DOESN'T LOOK MENACING BUT THE TREELESS EXPANSE RINGED BY A CHAINLINK FENCE DOTTED WITH DAYGLO ORANGE KEEP OUT SIGNS WAS ONCE A FUEL REFINERY AND CONCEALS 22 UNLINED UNDERGROUND CHEMICAL PITS IN 1984 THE ENVIRONMENTAL PROTECTION AGENCY ADDED IT TO ITS SUPERFUND LIST BURIED HERE IS A BREW OF VOLATILE COMPOUNDS INCLUDING BENZENE AND VINYL CHLORIDE BOTH KNOWN HUMAN CARCINOGENS GETTING LISTED UNDER THE 1980 SUPERFUND LAW WAS SUPPOSED TO INDICATE A CLEANUP WAS ON ITS WAY BUT WHAT CAME SOON AFTER THE EPA WERE HORDES OF LAWYERS THOUSANDS OF RESIDENTS HAVE SUED THE DEVELOPERS AND BUILDERS OF THE SUBDIVISION KNOWN AS SOUTHBEND AND SITUATED ABOUT 20 MILES SOUTH OF DOWNTOWN HOUSTON THEY ALSO HAVE SUED THE CHEMICAL COMPANIES ESPECIALLY MONSANTO CO OF ST LOUIS BEING HELD RESPONSIBLE FOR THE WASTE SITE TEACHERS AND PUPILS AT A LOCAL SCHOOL SUED RESIDENTS OF A NEIGHBORHOOD HALF A MILE AWAY SUED EVEN LITTLE LEAGUERS WHO PLAYED NEARBY SUED MOST OF THESE SUITS FILED IN STATE DISTRICT COURT IN HARRIS COUNTY ARE STILL PENDING THE COMPANIES AND THEIR INSURERS HAVE PAID OUT HUNDREDS OF MILLIONS OF DOLLARS IN SETTLEMENTS BUT THE CLEANUP HAS YET TO BEGIN WITH SUPERFUND UP FOR RENEWAL IN WASHINGTON CASES SUCH AS BRIO HELP EXPLAIN WHY THE PROGRAM IS LAMBASTED BY BOTH BUSINESS AND ENVIRONMENTALISTS JUST ABOUT EVERYTHING THAT CAN GO WRONG AT A SUPERFUND SITE WENT WRONG AT BRIO SAYS LINDA GREER A SENIOR SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL THE CLINTON ADMINISTRATION LAST WEEK PROPOSED SWEEPING CHANGES TO THE SUPERFUND LAW THAT EPA ADMINISTRATOR CAROL BROWNER SAID WOULD MAKE CLEANUPS FASTER FAIRER AND MORE EFFICIENT A MAJOR COMPLAINT ABOUT THE LAW IS ITS FAILURE TO ADDRESS QUICKLY MANY TOXIC DUMPS OVER THE PAST 14 YEARS ONLY ABOUT 200 HAVE BEEN CLEANED UP WHILE THE LIST HAS SWOLLEN TO MORE THAN 1250 SOME ESTIMATE THAT THESE CLEANUPS COULD TAKE 50 YEARS THE CLINTON PROPOSALS INCLUDE LOOSENING STANDARDS FOR SOME CLEANUPS ESPECIALLY ON LAND NEVER AGAIN TO BE USED FOR HOUSING INCENTIVES TO REDUCE COSTLY LEGAL TUSSLES AMONG COMPANIES RESPONSIBLE FOR WASTE SITES AND MORE COMMUNITY INVOLVEMENT IN DECISIONMAKING BUT STREAMLINING SUPERFUND WON'T DO MUCH TO AVOID SITUATIONS SUCH AS BRIO WHERE MANY OF THE THINGS THAT MISFIRED HAVE NOTHING TO DO WITH THE LAW ITSELF THE REVISIONS FOR EXAMPLE WON'T STOP LITIGIOUS RESIDENTS FROM SEEKING DAMAGES FOR POSSIBLE HEALTH PROBLEMS OR STEM THE FEARS AND UNCERTAINTIES THAT ARISE WHEN LAND NEXT TO ONE'S HOME IS TAGGED A TOXIC DUMP SIMILARLY BUSINESSES RESPONSIBLE FOR THE CLEANUPS MAY BE DISCOURAGED FROM GETTING INTO LEGAL WRANGLES BETWEEN THEMSELVES BUT THEY CAN'T BE FORBIDDEN TO IN THE CASE OF BRIO LOCAL RESIDENTS HAVE ALSO RAISED A STORM ABOUT THE CLEANUP ITSELF THEY CONTEND THAT THE AGENCY HAS OVERLOOKED EVIDENCE OF A WIDER RANGE OF CONTAMINANTS AT THE SITE THAN IT HAS ACKNOWLEDGED EXISTS THERE RESIDENTS WANT A MUCH MORE COMPLETE CLEANUP THAN CURRENTLY ENVISIONED ALL THE LAWSUITS AROUND BRIO ARE NOT THE FAULT OF SUPERFUND SAYS THE NATURAL RESOURCES DEFENSE COUNCIL'S MS GREER AND THEY WON'T BE ELIMINATED UNDER THE NEW LAW NOT THAT IT WAS CLEAR AT FIRST THAT BRIO WOULD BECOME SUCH A LEGAL SWAMP BACK IN 1984 MOST RESIDENTS BLANDLY ACCEPTED THE EPA'S ASSURANCES THAT LIVING IN SOUTHBEND WASN'T DANGEROUS AND THAT A CLEANUP WOULD SOON BE UNDER WAY FAMILIES CONTINUED MOVING IN THROUGHOUT THE DECADE WHILE OTHERS BUILT POOLS OR PUT UP SIDING WE HAD NO REASON TO DOUBT THE EPA AFTER ALL THEY WERE THE ONES COMING TO FIX THE PROBLEM SAYS NANCY WEBBER A 38YEAROLD HOUSEWIFE WHO MOVED INTO SOUTHBEND IN 1981 BUT THEN SHE STARTED NOTICING HEALTH PROBLEMS IN HER CHILDREN HER SON HAD 18 UPPERRESPIRATORY INFECTIONS BEFORE HE TURNED TWO AND DEVELOPED A SPEECH IMPEDIMENT HER DAUGHTER KEPT HAVING MASSIVE NOSEBLEEDS BY 1989 WORRIED RESIDENTS HAD CONDUCTED A DOORTODOOR SURVEY AND SAID THEY FOUND FRIGHTENING NUMBERS OF BIRTH DEFECTS LEUKEMIA AND OTHER HEALTH PROBLEMS THE EPA'S POSITION WAS THAT IF THERE WAS SUCH A PATTERN BRIO WASN'T AT FAULT THE AGENCY SAYS IT HAS YET TO FIND A PATHWAY SHOWING HOW CHEMICALS GOT INTO THE SUBDIVISION OTHER EFFORTS TO CONFIRM A PATTERN OF HEALTH PROBLEMS HAVE BEEN DISMISSED BY THE EPA AND THE CHEMICAL COMPANIES AS INCONCLUSIVE TO RESOLVE THE QUESTION THE AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY A DIVISION OF THE US PUBLIC HEALTH SERVICE IS CONDUCTING A HEALTH SURVEY ON EVERY WOMAN WHO EVER GAVE BIRTH THERE MRS WEBBER DOESN'T NEED ANY MORE PROOF SHE EVENTUALLY HAD HER CHILDREN TESTED AND FOUND ABNORMAL LEVELS OF SOME CHEMICALS IN THEIR BLOOD NO ONE HAS EVER EXPLAINED HOW THE CHEMICALS MIGHT HAVE COME FROM BRIO ITS BORDER WAS THREE BLOCKS FROM WHERE THEY LIVED BUT THE WEBBERS DECIDED TO FLEE THEIR HOUSE TO A COMMUNITY 50 MILES TO THE NORTH AND MRS WEBBER SAYS HER CHILDREN'S PROBLEMS HAVE SUBSIDED THE FAMILY SUED BUT WE GOT VERY LITTLE MONEY MRS WEBBER SAYS BECAUSE WHEN YOU LOOK AT MY KIDS YOU DON'T SEE THE PROBLEMS AS PART OF THE OUTOFCOURT SETTLEMENT THE WEBBERS HAD TO AGREE NOT TO DISCLOSE TERMS BY THE TIME THE WEBBERS LEFT IN 1990 NOT ONLY THE RESIDENTS WERE WORRIED THEIR MORTGAGE COMPANY IGNORED THEM WHEN THEY STOPPED SENDING PAYMENTS ON THEIR ABANDONED HOME AND THEY SOON LEARNED THE REASON THE COMPANY HAD TORN UP THE NOTE THEY SAID YOU OWN IT YOU DON'T NEED TO CALL US ANYMORE' MRS WEBBER RECALLS WORRIED ABOUT POSSIBLE LIABILITY MORTGAGE HOLDERS SIMPLY GAVE SOME PEOPLE THEIR HOUSES SIMILARLY THE RESOLUTION TRUST CORP WHICH ENDED UP WITH SOME SOUTHBEND PROPERTIES WHEN IT TOOK OVER FAILED THRIFT INSTITUTIONS RUSHED TO UNLOAD THEM AUCTIONING OFF ONE HOUSE FOR JUST 39 IN ANOTHER MOVE THAT STARTLED RESIDENTS THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT STOPPED PUTTING FOR SALE SIGNS ON HOUSES IT OWNED FEARING THAT SUCH ADVERTISING MIGHT BE VIEWED AS ENDORSING THE NEIGHBORHOOD AS SOME RESIDENTS WERE FLEEING OTHER PEOPLE MOVED INTO SOUTHBEND AND BECAME ELIGIBLE TO SUE ONE FAMILY THAT ARRIVED IN 1990 GOT 50000 FOR EACH OF TWO CHILDREN TO COVER THE POSSIBILITY THEY MIGHT DEVELOP HEALTH PROBLEMS IN THE FUTURE WITH THE EPA CONTENDING IT WAS SAFE TO LIVE THERE LATECOMERS COULD SAY THEY MOVED IN WITHOUT REALIZING THE DANGER EVEN THOUGH SELLERS HAD BEGUN REQUIRING BUYERS TO SIGN DISCLOSURE FORMS STATING THEY KNEW THAT THE HOUSE WAS NEAR A SUPERFUND SITE SOME FAMILIES ENDED UP IN A SERIES OF LAWSUITS MARIA MOLINA SAYS SHE AND HER HUSBAND NOE SUED THE DEVELOPER OVER DECEPTIVE TRADE AFTER DISCOVERING THAT THE HOUSE THEY BOUGHT IN 1983 A YEAR BEFORE THE ANNOUNCEMENT ABOUT BRIO WAS WITHIN VIEW OF THE SUPERFUND SITE THEY GOT AN OUTOFCOURT SETTLEMENT BUT THEY BOUGHT A SECOND HOUSE IN THE NEIGHBORHOOD IN 1987 ACCORDING TO REAL ESTATE RECORDS MRS MOLINA SAYS THEY WANTED TO HELP BOLSTER THE AREA AND HAVE AN INVESTMENT TO HELP PAY FOR THEIR THREE SONS' EDUCATIONS WE'D HEARD ALL ABOUT THE SCARE SHE SAYS BUT THE EPA WAS TELLING US IT WAS OK AND WE LOVED THE NEIGHBORHOOD ESPECIALLY THE SCHOOL THE MOLINAS MOVED INTO THE SECOND HOUSE AND NOW ARE SUING AGAIN THIS TIME ON BEHALF OF THE BOYS WHILE WAITING FOR THE DEVELOPER TO BUY THE HOUSE BACK THE CHILDREN ARE FINE SHE SAYS SO FAR ANOTHER LITIGANT IS LEE ANNE HERBERT A SOUTHBEND RESIDENT FROM 1982 TO 1990 WHO SAYS SHE HAD FOUR EXTREMELY DIFFICULT PREGNANCIES AND HER FIRST CHILD WAS STILLBORN SHE BLAMES THE WASTE SITE WHICH WAS TWO DOORS AWAY THE HERBERTS HAVE ALREADY SUED ON BEHALF OF THEMSELVES AND THEIR CHILDREN AND NOW ARE CONSIDERING SUING OVER THE CHILD THAT DIDN'T SURVIVE THEY ALREADY HAVE COLLECTED MONEY IN SEVERAL SETTLEMENTS AT TIMES IT SEEMS LIKE I'M GETTING GREEDY MS HERBERT SAYS BUT I DON'T CARE AFTER WHAT WE'VE SUFFERED THROUGH WE DESERVE SOMETHING WHILE RESIDENTS SUED THE BUILDER OF THE SUBDIVISION AND THE COMPANIES RESPONSIBLE FOR THE WASTE SITE GOT INTO A LEGAL SNARL OF THEIR OWN THAT HAPPENED EVEN THOUGH THE BUSINESSES RESPONSIBLE FOR THE SITE AGREED EARLY ON ABOUT HOW TO PAY THE CLEANUP BILL WHICH IS EXPECTED TO RUN BETWEEN 60 MILLION AND 80 MILLION IN MANY SUPERFUND CLEANUPS IT IS PRECISELY THIS QUESTION THAT SPARKS THE LEGAL WRESTLING THE FIGHT AT BRIO HOWEVER ERUPTED OVER WHO SHOULD PAY THE SETTLEMENTS TO THE NEARBY RESIDENTS IN THE FIRST WAVE OF LAWSUITS IN THE MID1980S RESIDENTS MAINLY CONTENDED THAT THEY WERE VICTIMS OF DECEPTIVE TRADE BECAUSE NOBODY HAD WARNED THEM ABOUT THE WASTE SITE THESE PEOPLE GOT RELATIVELY SMALL PAYOUTS BUT WHEN HOMEOWNERS STARTED CLAIMING HEALTH PROBLEMS AND THE PROSPECT OF HUGE JURY AWARDS LOOMED THE DEVELOPER FARM & HOME SAVINGS ASSOCIATION OF NEVADA MO BEGAN LOOKING AROUND FOR SOMEONE TO BEAR THE COST IN 1989 A GROUP OF RESIDENTS WERE SUING FARM & HOME AND MONSANTO CONTENDING THAT THEY WERE GETTING SICK FROM LIVING IN THE NEIGHBORHOOD AFTER STEADFASTLY DENYING THERE WAS ANY PROBLEM IN THAT CASE THE DEVELOPER AND ITS INSURER CRUM & FORSTER INC A BASKING RIDGE NJ SUBSIDIARY OF XEROX CORP DECIDED TO SETTLE WITH THE RESIDENTS AND TEAM UP WITH THEM TO SUE MONSANTO IN THE STATE DISTRICT COURT UNDER THIS ARRANGEMENT KNOWN AS A MARY CARTER AGREEMENT IN TEXAS THE INSURER AND DEVELOPER WERE ELIGIBLE TO POCKET HALF OF WHATEVER THE RESIDENTS WON FROM MONSANTO BUT THE JURY FOUND FOR MONSANTO AND IN A BITTER TWIST LATER SUITS RELIED ON THE RECORD OF THIS CASE IN WHICH THE DEVELOPER AND INSURER APPEARED TO ACKNOWLEDGE PROBLEMS IN SOUTHBEND WE TOOK THE POSITION IN THIS CASE THAT RIGHT NEXT DOOR TO A HAZARDOUSWASTE SITE IS PROBABLY NOT THE BEST PLACE TO BUILD A SUBDIVISION SAYS THOMAS BISTLINE A MONSANTO ATTORNEY BUT THERE WAS NO PROOF ANYONE WAS INJURED THE DISPUTE IS FAR FROM OVER MONSANTO WON A 71 MILLION VERDICT IN STATE COURT IN HARRISON COUNTY IN 1992 AGAINST CRUM & FORSTER WHICH ALSO IS ONE OF THE CHEMICAL COMPANY'S OWN INSURERS MONSANTO CLAIMED CRUM & FORSTER ACTED IN BAD FAITH IN GOING TOGETHER WITH RESIDENTS TO TRY TO COLLECT MONEY UNDER A MARY CARTER AGREEMENT THE CASE IS ON APPEAL MONSANTO IS ALSO WRANGLING WITH CRUM & FORSTER OVER WHO SHOULD PAY ITS SHARE OF OTHER SETTLEMENTS WITH THE RESIDENTS MEANWHILE SOUTHBEND HAS BECOME ALMOST A SUBURBAN GHOST TOWN ALL BUT ABOUT 100 OF THE 667 HOMES ARE BOARDED UP THE COMMUNITY POOL IS FILLED WITH DIRT AND THE ELEMENTARY SCHOOL IS CLOSED TO STOP THE HAILSTORM OF LITIGATION SOUTHBEND'S DEVELOPER AND CRUM & FORSTER ARE BUYING BACK THE HOUSES BUT THE TWO SIDES ARE FIGHTING OVER WHO SHOULD PAY FOR THAT AS WELL THE ENTIRE AREA PROBABLY WILL BE BULLDOZED DRIVING ALONG A RUTTED PATH INSIDE THE FENCE SEPARATING THE WASTE SITE FROM SOUTHBEND JOHN MEYER THE EPA PROJECT MANAGER GAZES AT THE BLEAK EMPTY HOUSES AND SHAKES HIS HEAD WE STILL DON'T BELIEVE THERE'S ANY IMMEDIATE HEALTH RISK OVER THERE HE SAYS EXPLAINING THAT HIS AGENCY'S SOIL AND WATER TESTS NEVER FOUND ANY CONTAMINATION THAT WOULD EXPLAIN HEALTH PROBLEMS HE CONCEDES THAT SUPERFUND SEEMS TO HAVE FAILED AT BRIO IF ITS PURPOSE IS TO CLEAN UP SITES QUICKLY BUT HE ADDS NOTHING WOULD HAVE HAPPENED HERE IF IT WEREN'T FOR THE LAW PULLING OVER NEAR THE BANK OF A MUDDY CREEK HE SHOWS ONE OF THE THINGS EPA IS ALREADY DOING TO CONTAIN THE DAMAGE FROM DECADES OF CARELESS HANDLING OF CHEMICALS A WHITE PLASTIC PIPE STICKS OUT OF THE GROUND LINKED TO A PUMP AND A NEARBY FILTERING MACHINE PART OF A NETWORK OF PUMPS AND FILTERS THAT PROBABLY WILL BE NEEDED FOR THE INDEFINITE FUTURE TO STOP CHEMICALS FROM LEACHING INTO THE WATER FROM THE GROUND BELOW THE WASTE PITS PEOPLE DON'T REALIZE THAT WE'RE GOING TO HAVE TO BE HERE FOREVER HE SAYS THE EPA HAS BUILT AN INCINERATOR AT BRIO TO BURN WHAT IT CAN DIG OUT OF THE GROUND BUT AS OFTEN HAPPENS AT SUPERFUND SITES LOCALS ARE OPPOSING THAT TOO MANY FEAR THE INCINERATOR WILL SPEW INTO THE AIR DANGEROUS CHEMICALS THAT COULD DRIFT INTO MORE DISTANT NEIGHBORHOODS THE ONLY OTHER OPTION WOULD BE TO DIG UP THE CHEMICAL PITS AND HAUL THE SOIL AWAY BUT THAT WOULD RISK SPREADING THE CONTAMINATION AND CREATING ANOTHER HAZARDOUSWASTE SITE SOMEWHERE ELSE THIS IS ONE REASON EPA FAVORS DEALING WITH HEAVILY CONTAMINATED SOIL WITH ONSITE INCINERATION WITH THE AGENCY'S CREDIBILITY HERE WEAKENED BY THE SOUTHBEND DEBACLE IT FACES A TOUGH TASK CONVINCING RESIDENTS THE INCINERATOR IS SAFE ONE SKEPTIC IS MARIE FLICKINGER EDITOR OF THE LOCAL NEWSPAPER HUNCHED OVER BOXES OF DOCUMENTS AND AERIAL MAPS IN HER CLUTTERED OFFICE JUST UP THE ROAD FROM THE BRIO SITE SHE HAS MADE STOPPING THE INCINERATOR A TOP PRIORITY OFFICIALS WHO ONCE MIGHT HAVE DISMISSED MRS FLICKINGER TAKE HER VERY SERIOUSLY HER CRUSADE HAS HELPED DRAW ATTENTION TO BRIO FROM TEXAS GOV ANN RICHARDS WHO HAS ENLISTED HELP FROM EPA ADMINISTRATOR BROWNER IN REEXAMINING THE CLEANUP I GUESS YOU COULD SAY BRIO IS MY OBSESSION SAYS MRS FLICKINGER EXPLODING IN A CACKLE OF LAUGHTER IF MRS FLICKINGER HAS A NEMESIS IT'S NORMA GOLDMAN AS SPOKESWOMAN FOR THE BRIO SITE TASK FORCE MS GOLDMAN REPRESENTS THE CHEMICAL COMPANIES THAT DRAFTED THE BRIO CLEANUP PLAN UNDER EPA OVERSIGHT MS GOLDMAN NOTES THAT MRS FLICKINGER HAS A FINANCIAL INTEREST IN SOUTHBEND SHE OWNS A HOUSE THERE IN WHICH HER SON ONCE LIVED MRS FLICKINGER ADMITS OWNING THE HOUSE AND SHE IS SEEKING A NOMINAL SETTLEMENT ON IT BUT DENIES THIS HAS COLORED HER OPINION OF COURSE MANY OF THE PROBLEMS AT BRIO MIGHT HAVE BEEN AVOIDED IF AS MS GOLDMAN ONCE CONTENDED THERE WAS A 250FOOT IMPERMEABLE CLAY LAYER UNDER THE SITE IN THE LATE 1980S SHE USED TO TELL COMMUNITY GROUPS ABOUT THE MASS OF CLAY WHICH IN THEORY WOULD HOLD IN CHEMICALS AND SHIELD THE GROUNDWATER BELOW I WISH I'D NEVER USED THE TERM SHE SAYS EXPLAINING THAT WHAT SHE ACTUALLY MEANT WAS THAT THERE IS A PRETTY GOOD LAYER OF CLAY DOWN BELOW WHICH ACTUALLY IS PERMEABLE ONE OF THE COMPLAINTS ABOUT MANY SUPERFUND CLEANUPS INCLUDING BRIO IS THAT THE EPA LETS COMPANIES RESPONSIBLE FOR THE DUMPED CHEMICALS HAVE A LOT OF SAY IN HOW THEY ARE CLEANED UP THE CLINTON PROPOSALS WOULDN'T CHANGE THAT HOWEVER BECAUSE THE COST AND TIME INVOLVED IN HAVING EPA DO ALL THE WORK WOULD MAKE IT IMPOSSIBLE TO DO MORE THAN A FEW AT A TIME THE IDEA OF EASING THE STANDARDS DEPENDING ON HOW THE LAND WILL BE USED IN THE FUTURE IS ALSO CONTROVERSIAL AT BRIO LOCAL RESIDENTS HAVE LONG STRUGGLED WITH THE NOTION OF WHAT IT MEANS TO CLEAN THE SITE MANY INITIALLY THOUGHT THAT THE EPA WAS GOING TO CLEANSE THE PLACE COMPLETELY BUT NO TECHNOLOGY EXISTS TO DO THAT UNDER THE EPA PLAN BRIO WOULD REMAIN PRACTICALLY A NO MAN'S LAND FOREVER IT WILL BE A WILDLIFE SANCTUARY WITH A FENCE AROUND IT SAYS MR MEYER ADDING THAT THE EPA HAS SELECTED SPECIAL GRASSES TO PLANT THERE AFTER THE INCINERATION IS FINISHED AND THE LAND SMOOTHED OVER 9402090083 940209 TECHNOLOGY & ENVIRONMENT APPLE NEARING DEBUT OF NEW MACINTOSHES SLASHES QUADRA PRICES CUPERTINO CALIF APPLE COMPUTER INC HOPING TO MAINTAIN SALES AS IT PREPARES TO LAUNCH ANOTHER LINE OF PERSONAL COMPUTERS NEXT MONTH SAID IT CUT PRICES IN THE US BETWEEN 7 AND 18 ON MACINTOSH QUADRA COMPUTERS IN ADDITION TO THE PRICE CUTS APPLE SAID US CUSTOMERS BUYING SELECTED QUADRA COMPUTERS WITH QUALIFYING PRINTERS CAN RECEIVE A 150 MAILIN REBATE THESE INCENTIVES FOLLOW APPLE'S RECENT ASSURANCE THAT MACINTOSH QUADRA SYSTEMS CURRENTLY SOLD WILL BE EASILY UPGRADED TO POWERPC THE NEW CHIP DEVELOPED BY APPLE MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP THAT APPLE IS USING TO POWER ITS NEW LINE OF MACINTOSHES ANALYSTS HAVE SAID APPLE CUSTOMERS MIGHT DEFER PURCHASING A NEW COMPUTER UNTIL THE POWERPC MACINTOSHES COME OUT LEAVING EXISTING PRODUCT UNSOLD IN AN EFFORT TO INDUCE SALES THAT HAS BEEN SUCCESSFUL APPLE CUT PRICES REPEATEDLY OVER THE PAST YEAR MAKING THE MACINTOSH MORE COMPETITIVE APPLE ALSO LOWERED PRICES AS MICROSOFT CORP'S WINDOWS OPERATING SYSTEM ENABLED RIVAL IBMCOMPATIBLE COMPUTERS TO EMULATE THE MAC'S LOOK AND FEEL 9402090082 940209 PRICING HEALTH CARE CBO DATA SHOW CLINTON WANTS 400 BILLION TAX BY PAUL G MERSKI WHEN PRESIDENT CLINTON CLAIMED HE COULD FINANCE HIS MASSIVE HEALTH REFORM PLAN WITHOUT BROADBASED NEW TAXES FEW AGREED NOW ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE OFFICIALLY DISAGREES WITH THE ADMINISTRATION AS WELL MR REISCHAUER AND HIS CBO STAFF HAVE IMPOSED SOME NEEDED TRUTHINLABELING ON MR CLINTON'S PLAN THEIR FIRST MOVE WAS TO SCORE OR CATEGORIZE THE PRESIDENT'S MANDATORY INSURANCE PREMIUMS AS REVENUES TO BE RECORDED ON THE FEDERAL BUDGET BOOKS THIS REPRESENTS A MOVE TOWARD BUDGETARY HONESTY SINCE THE PRESIDENT HAD RELEGATED THOSE RELEVANT NUMBERS TO THE OFFBUDGET SHADOWS THE CBO ALSO CONFIRMED THROUGH ITS MATH THAT MR CLINTON'S PROPOSED HEALTH PLAN IS THE LARGEST ENTITLEMENT PROGRAM EVER 25 LARGER THAN THE CURRENT SOCIAL SECURITY SYSTEM BY THE YEAR 2004 THE PRESIDENT'S HEALTH REFORM WILL COST 100 BILLION MORE THAN SOCIAL SECURITY WILL COST IN THAT YEAR BY CORRECTLY LABELING SOME 320 BILLION IN EMPLOYER/EMPLOYEE MANDATES AS NEW REVENUES AND BY KEEPING THEM IN THE FEDERAL BUDGET MR REISCHAUER EXPOSES THE REAL COST TO THE TAXPAYING PUBLIC OF MR CLINTON'S PLAN IT IS THESE COSTLY NEW MANDATES AS WELL AS THE ADDITIONAL 90 BILLION IN TOBACCO CORPORATE AND OTHER TAX INCREASES THAT CONSTITUTE THE BULK OF THE NEW BURDEN FACING TAXPAYERS IN OTHER WORDS WHAT MR REISCHAUER HAS DONE IS TO QUANTIFY FOR THE FIRST TIME THE SIZE OF THE TAX BILL THAT BIG SECTIONS OF THE HEALTH REFORM REPRESENT MR REISCHAUER REVEALED OTHER AREAS WHERE THE CLINTON PLAN DOESN'T COMPUTE FOR EXAMPLE THE PRESIDENT'S HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TESTIFIED IN OCTOBER THAT THE ADMINISTRATION WAS ALLOWING A 45 BILLION CUSHION IN CASE ITS NUMBERS FOR HEALTH CARE REFORM DID NOT ADD UP YESTERDAY THOUGH MR REISCHAUER STATED THAT HIS OFFICE'S MATH SHOWED THAT THERE WAS ABSOLUTELY NO SUCH CUSHION AVAILABLE IN THE BUDGET INDEED HE NOTED THAT AMERICA WAS ON THE FLOOR ON HEALTH CARE FUNDING WHAT THIS MEANS IS THAT IF THE ADMINISTRATION SPENDS ONE PENNY BEYOND ITS BUDGET ON HEALTH CARE THE DEFICIT WILL WIDEN IN FACT CBO SHOWS THE CLINTON PLAN INCREASING THE DEFICIT BY 70 BILLION RATHER THAN DECREASING IT BY 58 BILLION AS THE ADMINISTRATION HAS CLAIMED IT IS OF COURSE NO MYSTERY WHY AFTER SQUEAKING BY THE LARGEST TAX INCREASE IN HISTORY THE ADMINISTRATION HAD BEEN PRESSURING CBO NOT TO COUNT THE EMPLOYER/EMPLOYEE MANDATES AS TAXES THE TAX INCREASES AND TAX MANDATES PROPOSED WOULD EASILY ECLIPSE THE BURDEN IMPOSED UNDER LAST YEAR'S RECORD 248 BILLION TAX INCREASE FORTUNATELY THE CBO'S HONEST LABELING OF MR CLINTON'S PROPOSED MANDATES ALLOWS TAXPAYERS TO BETTER UNDERSTAND THE MEDICINE THEY ARE BEING PRESCRIBED IN AN ATTEMPT TO IMPROVE OUR HEALTH CARE SYSTEM IT'S MEDICINE THAT SHOULDN'T BE TAKEN ON AN EMPTY STOMACH THE SIDE EFFECTS OF A SIGNIFICANT TAX INCREASE INCLUDE LOST JOBS LOWER WAGE GROWTH AND HEALTH CARE RATIONING DESPITE THE PRESIDENT'S OFFER TO SUBSIDIZE SMALL BUSINESSES TO HELP THEM PAY FOR HIS MANDATE EVEN THE SMALLEST BUSINESS REGARDLESS OF ITS INCOME WOULD BE FORCED TO PAY AT LEAST 35 OF ITS PAYROLL TO HEALTH ALLIANCES UNDER THE CLINTON PLAN AND THAT AMOUNT IS SET TO BE INCREASED OVER TIME WORSE YET THE NEW MANDATE WOULD ONLY COMPOUND THE FINANCIAL BURDEN FOR MANY SMALL BUSINESSES THAT ARE CURRENTLY ABSORBING LAST YEAR'S INCOMETAX INCREASES ACCORDING TO A NEW DRI/MCGRAW HILL ECONOMETRIC STUDY TO BE RELEASED TODAY THE COMBINED IMPACT OF MR CLINTON'S DEMAND FOR UNIVERSAL COVERAGE AND THE EMPLOYER MANDATE WOULD RESULT IN HUNDREDS OF THOUSANDS OF LOST JOBS A WIDER DEFICIT AND LOWER GDP GROWTH THE ADDITIONAL TAXES PROPOSED TO PAY FOR UNIVERSAL COVERAGE A TOBACCO TAX CORPORATE ASSESSMENTS ADJUSTMENTS TO FLEXIBLE SPENDING ACCOUNTS AND CHANGES IN MEDICALEXPENSE DEDUCTIONS WOULD STRENGTHEN UNEMPLOYMENT AND HURT THE INCOME OF INDIVIDUALS THEY WOULD EXACERBATE THE NEGATIVE EFFECTS OF FORCING EMPLOYERS TO INSURE THEIR EMPLOYEES THE EMPLOYER MANDATE THE CBO'S HONEST CALCULATIONS OF MR CLINTON'S FINANCING PROBLEMS CONFIRM THE SUSPICIONS THAT MOST AMERICANS HAD ABOUT THE CLINTON HEALTH REFORM PLAN THERE IS NO FREE LUNCH IF AMERICANS ARE LEGALLY REQUIRED BY GOVERNMENT TO PAY A SET AMOUNT OF MONEY FOR A GOVERNMENTDEFINED PURPOSE AND THEY DON'T HAVE ANY CHOICE ABOUT PAYING THAT MONEY IT'S A TAX UNDER THE PRESIDENT'S MANDATEFINANCING SCHEME GOVERNMENT CONTROLS MORE MONEY LARGELY BY REQUIRING EMPLOYERS TO BE THE COLLECTION AGENCY FOR UNCLE SAM TAXES ACT AS THE MOST IMPORTANT PRICE MECHANISM FOR PEOPLE TO DECIDE HOW MUCH OR HOW LITTLE GOVERNMENT INVOLVEMENT THEY DESIRE AND ARE WILLING TO PAY FOR THE POINT DID DRAW SERIOUS ATTENTION WHEN ADMINISTRATION OFFICIALS TESTIFIED THAT THE CLINTON PLAN MAY FORCE 40 OF AMERICANS TO PAY HIGHER OUTOFPOCKET PREMIUMS THAN THEY PAY CURRENTLY THE CBO IS MERELY AN ADVISORY PANEL ITS JOB IS TO ADVISE CONGRESS IN THIS INSTANCE ON THE FINANCING AND BUDGETARY ASPECTS OF HEALTH CARE THE CLINTON ADMINISTRATION AND THE PRESIDENT'S OFFICE OF MANAGEMENT AND BUDGET STILL HAVE THE LAST WORD ON HOW THE FINANCING IS PRESENTED IN THE FEDERAL BUDGET BUT NOW THE CONGRESSIONAL BUDGET OFFICE'S MORE ACCURATE MATH AND BUDGET RECORDING OF THE MAJOR FINANCING FOR THE PRESIDENT'S HEALTH CARE OVERHAUL WILL MAKE IT EASIER FOR AMERICANS TO DECIDE IF THEY WANT TO TAKE THE PRESIDENTIAL MEDICINE MR MERSKI AN ECONOMIST IS DIRECTOR OF FISCAL POLICY FOR CITIZENS FOR A SOUND ECONOMY IN WASHINGTON 9402090081 940209 LETTERS TO THE EDITOR GUARDIAN LIFE CLARIFIES SUSPENSION OF AGENT YOUR JAN 21 PAGEONE ARTICLE PAYING THE PRICE DOES NOT REFLECT THE WHOLE STORY AT LEAST AS IT APPLIES TO THE THE GUARDIAN THE ARTICLE STATED THAT 30 INSURANCE AGENTS FROM FOUR COMPANIES WERE FINED OR SUSPENDED LAST YEAR FOR CHURNING INSURANCE POLICIES GUARDIAN LIFE WAS LISTED AS ONE OF THESE COMPANIES IN THE INTEREST OF FAIRNESS LET US REVIEW THE RECORD THE NEW YORK STATE INSURANCE DEPARTMENT IN ITS JANUARYFEBRUARY 1993 BULLETIN LISTED THE REVOCATION OF A GUARDIAN AGENT'S LICENSE FOR VIOLATION OF REGULATION 60 REQUIRED DISCLOSURE IN A REPLACEMENT SALE THE VIOLATION REFERRED TO OCCURRED IN 1989 THE CITED AGENT'S LICENSE TO REPRESENT GUARDIAN LIFE WAS TERMINATED ON MAY 15 1990 9402090080 940209 PARAMOUNT'S FATE IN THE HANDS OF A FEW BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL BARRY DILLER GOT A BLUNT MESSAGE YESTERDAY FROM LEON COOPERMAN ONE OF THE LARGEST SHAREHOLDERS OF PARAMOUNT COMMUNICATIONS INC YOU'RE LOSING IT CAME DURING A MEETING TO PROMOTE THE TAKEOVER BID FOR PARAMOUNT BY MR DILLER'S QVC NETWORK INC OVER CROISSANTS AND COFFEE AT THE POSH FIFTH AVENUE OFFICES OF ALLEN & CO QVC'S INVESTMENT BANKER UNLIKE A POLITICAL ELECTION WHICH RIDES ON MILLIONS OF INDIVIDUAL DECISIONS THE PARAMOUNT CONTEST WILL BE DECIDED BY PEOPLE LIKE MR COOPERMAN THE FEW HUNDRED TRADERS AND INSTITUTIONAL INVESTORS WHO CONTROL A MAJORITY OF THE STOCK MR DILLER AND HIS BIDDING RIVAL VIACOM INC'S CHAIRMAN SUMNER REDSTONE ARE IN THE HOMESTRETCH OF THEIR HARDFOUGHT FIVEMONTHOLD BATTLE AND THEY ARE FURIOUSLY COURTING BIG INVESTORS LIKE MR COOPERMAN WHO MUST DECIDE WHICH BID TO ACCEPT IN FACETOFACE MEETINGS MR COOPERMAN A WALL STREET VETERAN WHOSE OMEGA ADVISERS INC OWNS 45 MILLION PARAMOUNT SHARES TOLD MR DILLER THAT OMEGA WILL TENDER ITS 38 PARAMOUNT STAKE TO VIACOM ON MONDAY UNLESS QVC BOLSTERS THE VALUE OF QVC STOCK THAT MAKES UP PART OF THE QVC OFFER VIACOM HOLDS AN EDGE IN THE BIDDING BECAUSE IT HAS OFFERED A SECURITY THAT TAKES SOME OF THE RISK OUT OF ITS BID'S STOCK COMPONENT EMANUEL GERARD AN ENTERTAINMENT ANALYST WHO ATTENDED THE MEETING SAID BARRY IS A SMART MAN AND HANDLED HIMSELF WELL BUT EVERYONE IN THE GROUP TOLD BARRY THAT IF HE DOESN'T DO ANYTHING HE'S GOING TO LOSE MR DILLER BOUND BY BIDDING RULES BARRING HIM FROM CHANGING HIS OFFER UNLESS NEITHER SIDE WINS A MAJORITY OF PARAMOUNT SHARES ON FEB 14 SAID HE COULDN'T MAKE ANY PROMISES BUT HE AND EXECUTIVES OF COMCAST CORP A QVC INVESTOR HINTED THEY MIGHT SAY MORE ON FEB THAT WAS THE FIRST MEETING OF THE DAY WHICH BEGAN AT 1015 AM AT A SECOND MEETING AT 1145 AM MR DILLER AND HIS PARTNERS WENT A BIT FURTHER EDWARD HATCH AN ANALYST FROM UBS SECURITIES INC WHO WAS PRESENT SAID THEY SAID THEY ARE CONSIDERING SOME MECHANISM BY WHICH BELLSOUTH AND PERHAPS THE OTHER QVC INVESTORS WOULD BUY A CERTAIN AMOUNT OF STOCK AT A STATED PRICE OVER A CERTAIN NUMBER OF YEARS WHILE MR DILLER TALKS TO INVESTORS IN MANHATTAN MR REDSTONE AND A TEAM OF VIACOM EXECUTIVES ARE CALLING ON INVESTORS THIS WEEK IN SAN FRANCISCO LOS ANGELES AND NEW YORK ONE OF HIS PLANNED STOPS WAS CAPITAL GROUP INC IN LOS ANGELES HOME OF THE INFLUENTIAL MEDIASTOCK ANALYST GORDON CRAWFORD WHO WAS A QVC SUPPORTER BEFORE HE SOLD MOST OF HIS PARAMOUNT STOCK MR REDSTONE IS MAKING HIS CASE FOR THE COMBINATION OF PARAMOUNT AND VIACOM THE CABLETV PROGRAMMER THAT OWNS NICKELODEON AND MTV AND BLOCKBUSTER ENTERTAINMENT CORP THE VIDEO RENTAL CHAIN VIACOM AGREED TO BUY TO FINANCE A HIGHER PARAMOUNT BID ALTHOUGH QVC AND VIACOM MADE THEIR FINAL OFFERS FEB 1 THEY ARE HOLDING MEETINGS KNOWN AS ROAD SHOWS DESIGNED TO PROMOTE THEIR STOCK THAT'S BECAUSE BOTH OFFERS INCLUDE EQUITY SECURITIES WHOSE VALUE FLUCTUATES ACCORDING TO INVESTORS' VIEW OF HOW WELL EACH BIDDER WOULD DO WITH PARAMOUNT MR DILLER ISN'T LOSING ONLY AMONG SHORTTERM TRADERS LIKE MR COOPERMAN MARIO GABELLI AN INSTITUTIONAL INVESTOR WHOSE FUNDS OWN ROUGHLY FOUR MILLION PARAMOUNT SHARES HAS SAID HE PLANS TO TENDER AT LEAST 25 MILLION SHARES TO VIACOM SOME INVESTORS SAY THEY BUY MR DILLER'S STORY THAT HE WOULD BE A SUPERIOR MANAGER OF THE PARAMOUNT ASSETS I THINK BARRY COULD DO A LOT WITH IT SAYS RANDALL HAASE A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT WHO PLANS TO TENDER 300000 PARAMOUNT SHARES TO QVC DILLER IS A VERY CREATIVE INDIVIDUAL I WOULD LIKE QVC TO BE THE VICTOR AND TURN AROUND PARAMOUNT SOME TRADERS ARE SKEPTICAL OF QVC'S PROMISES WHICH THEY VIEW AS AIMED AT SOWING CONFUSION IN ORDER TO THWART VIACOM FROM ENDING THE CONTEST BY OBTAINING 501 OF PARAMOUNT'S 120 MILLION SHARES OUTSTANDING ANYONE WHO DOESN'T TENDER TO VIACOM BECAUSE OF VAGUE PROMISES BY QVC IS CRAZY SAID MARK DICKSTEIN PRESIDENT OF DICKSTEIN PARTNERS INC A PARAMOUNT HOLDER SEE RELATED ARTICLE MEDIA VIACOM AND QVC DEBATE WHO WOULD BE BETTER PARENT WSJ FEB 9 1994 9402090078 940209 COMMODITIES COTTONFUTURES PRICES SOAR ON NEWS INDICATING TIGHT SUPPLY IN SESSION CUT SHORT BY SNOWSTORM BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COTTONFUTURES PRICES SOARED IN A TRADING SESSION THAT WAS CUT SHORT BY HEAVY SNOW IN NEW YORK AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS UP 187 CENTS TO 7747 A POUND JOINING THE COTTON EXCHANGE IN CLOSING EARLY YESTERDAY WERE THE COMMODITY EXCHANGE WHICH TRADES PRECIOUSMETALS FUTURES CONTRACTS AND THE NEW YORK MERCANTILE EXCHANGE WHICH TRADES ENERGY CONTRACTS THE FOURTH NEW YORK MARKET THE COFFEE SUGAR & COCOA EXCHANGE CLOSED AT ITS NORMAL TIME OF 143 PM EST COTTON PRICES HAD SAGGED MONDAY ON NERVOUSNESS ABOUT THE US STOCK MARKET'S BIG DECLINE THE PREVIOUS WEEK BUT YESTERDAY BUYERS RETURNED TO THE COTTON MARKET IN FORCE LURED PRIMARILY BY NEWS REPORTS THAT CONTINUED TO SUGGEST AN EXTREMELY TIGHT GLOBAL SUPPLY OF COTTON INDIA A TRADITIONAL EXPORTER OF COTTON THAT HAD BEEN EXPECTED TO COMPETE AGGRESSIVELY WITH US EXPORTERS FOR THE WORLD'S DEMAND FOR THE FIBER SUSPENDED DELIVERY OF COTTON IT HAD CONTRACTED TO SELL INDIA ORIGINALLY HAD CONTRACTED TO EXPORT 500000 BALES OF COTTON THIS SEASON SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON IN JANUARY THE COUNTRY ANNOUNCED IT WOULD SELL 130000 BALES LESS THAN EXPECTED YESTERDAY INDIA SAID IT WOULD WITHHOLD AN ADDITIONAL 200000 BALES IT HAD AGREED TO EXPORT MS KAUL SAID ANALYSTS EXPECT MILLS IN THE FAR EAST AND EUROPE WHICH HAD CONTRACTED TO BUY INDIA'S COTTON NOW TO RETURN TO THE WORLD MARKET TO REBUY THE COTTON THEY NEED US EXPORTERS ARE LIKELY TO WIN MUCH OF THAT BUSINESS BECAUSE THE US IS ONE OF THE FEW COUNTRIES THAT STILL MAINTAINS SALABLE STOCKS OF HIGHQUALITY COTTON AND US COTTON REMAINS FAVORABLY PRICED COMPARED WITH COTTON AVAILABLE OVERSEAS PAKISTAN ANOTHER MAJOR INTERNATIONAL COMPETITOR FOR THE US COTTONEXPORTING BUSINESS HAS HARVESTED A MUCH SMALLERTHANEXPECTED CROP THIS YEAR LAST AUGUST THE BEGINNING OF THE 199394 GROWING SEASON PAKISTANI COTTON PRODUCTION HAD BEEN FORECAST AT ABOUT 87 MILLION BALES BUT NOW THE US AGRICULTURE DEPARTMENT IS PREDICTING A MUCH SMALLER PAKISTANI CROP OF ABOUT 65 MILLION BALES CHINA AND AUSTRALIA TWO OTHER MAJOR COTTON PRODUCERS ARE ALSO PROJECTED TO HAVE SMALLERTHANEXPECTED CROPS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY MARCH CRUDEOIL FUTURES FELL FOUR CENTS A BARREL TO 1521 BUT OUTER MONTHS FINISHED HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE WHICH CLOSED MORE THAN AN HOUR EARLY BECAUSE OF A SNOWSTORM OTHER PETROLEUM FUTURES CONTRACTS WERE HIGHER AS WELL WITH HEATING OIL ESPECIALLY GETTING A BOOST FROM THE VERY WEATHER THAT TRUNCATED THE TRADING SESSION THE MARCH HEATINGOIL CONTRACT GAINED 059 CENTS TO CLOSE AT 5057 CENTS A GALLON MEANWHILE TRADERS WERE ANTICIPATING THE WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE TO SHOW ANOTHER BUILD IN US CRUDE INVENTORIES AND A SLACKENING IN REFINERY USAGE WHICH WOULD PUT DOWNWARD PRESSURE ON CRUDE PRICES TODAY MARCH NATURAL GAS JUMPED 64 CENTS TO 2411 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET ON THE SEVERE WEATHER AND SUPPLY QUESTIONS PRECIOUS METALS THE PRICE OF GOLD REGAINED SOME OF THE GROUND IT HAS LOST IN RECENT DAYS AS PHYSICAL DEMAND FOR THE METAL RETURNED TO THE MARKET AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE 340 TO 38410 AN OUNCE WHILE THE MARCH SILVERFUTURES CONTRACT WAS UP THREE CENTS TO 527 AN OUNCE THE FEDERAL RESERVE'S TIGHTENING OF THE SHORTTERM FED FUNDS RATE ON FRIDAY WEIGHED HEAVILY ON PRECIOUSMETALS PRICES BECAUSE IT WAS SEEN AS AN ANTIINFLATIONARY STEP INFLATION OR THE THREAT OF IT TENDS TO EXERT UPWARD PRESSURE ON METALS PRICES YESTERDAY BARGAINHUNTING BUYERS HELPED TO BRING GOLD'S PRICE UP FROM ITS MONDAY LOWS 9402090077 940209 TEXAS JOURNAL HERE'S TO SIGNS OF OVERCOMING A STATE'S SHAME BY MARJ CHARLIER ARE TEXANS STARTING TO WEAN THEMSELVES FROM LIGHT BEERS IF SALES OF SHINER BOCK ARE ANY CLUE THEY JUST MIGHT BE SALES OF THE DARK HEAVY BEER ROSE ABOUT 50 IN 1993 SAYS SPOETZL BREWERY OWNER CARLOS ALVAREZ HIS 84YEAROLD BREWERY IN SHINER SOLD A RECORD 73000 BARRELS LAST YEAR OR MORE THAN ONE MILLION CASES MOST OF IT IN TEXAS AND MOST OF IT SHINER BOCK SPECIALTY BEERS ARE GROWING IN TEXAS MR ALVAREZ SAYS BUT TEXANS HAVE A LONG WAY TO GO BEFORE THEY DRINK AS MUCH SPECIALTY BEER ANYTHING BUT A TYPICAL AMERICAN LAGER AS OTHER AMERICANS SPECIALTY BEERS ACCOUNT FOR LESS THAN 02 OF BEER SOLD IN TEXAS NATIONWIDE THEY APPROACH 1 OF THE MARKET SAYS FRANK WALTERS RESEARCH DIRECTOR AT IMPACT A NEW YORK BEVERAGE PUBLICATION LIGHT BEERS HOG MORE OF THE MARKET IN TEXAS THAN ANY OTHER STATE PERHAPS BECAUSE OF THE HEAT ONE OF EVERY TWO BEERS IMBIBED BY TEXANS IS A LIGHT BREW VS 40 OF THE NATIONAL MARKET THE NO 1 BEER IN TEXAS IS MILLER LITE ELSEWHERE IT'S BUDWEISER SHINER'S BIGGEST RIVALS IN THE TEXAS SPECIALTYBEER MARKET ARE DOING WELL TOO THOUGH THEIR NUMBERS ARE SMALL INSTATE SALES OF KILLIAN'S IRISH RED FROM COORS BREWING CO OF GOLDEN COLO ROSE ABOUT 50 IN 1993 TO 4000 BARRELS WHILE SALES OF SAMUEL ADAMS FROM BOSTON BEER CO OF BOSTON NEARLY TRIPLED TO 13000 BARRELS MR WALTERS SAYS OTHER BIG GAINERS INCLUDED TWO CALIFORNIA BEERS ANCHOR STEAM UP 13 TO 526 BARRELS AND SIERRA NEVADA WHICH ENTERED THE TEXAS MARKET IN 1993 AND SOLD 150 BARRELS THOSE NUMBERS ARE TINY COMPARED WITH MILLER LITE'S THREE MILLION TEXAS BARRELS BUT THERE'S HOPE FOR MARKETERS OF FULLCALORIE BEERS MILLER LITE'S TEXAS SALES FELL 6 LAST YEAR SHOWING THE SAME WEAKNESS AS ELSEWHERE AND MR ALVAREZ THINKS THE INTRODUCTION OF BREWPUBS BREWERYRESTAURANT COMBINATIONS APPROVED BY THE LEGISLATURE LAST YEAR WILL FURTHER HELP PULL TEXANS AWAY FROM LIGHT BEER IT'S GOING TO INCREASE THE EDUCATION ON DIFFERENT STYLES OF BEER HE SAYS 9402090076 940202 TEXAS JOURNAL TAX AIMED AT CREATING JOBS MISSES MARK HALFCENT TAX GOES TO SUPPORT HOSPITAL AND KILLERBEE STATUE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL SOMETHING HAS GONE AWRY IN RURAL TEXAS' QUEST FOR ECONOMIC DEVELOPMENT IN HIDALGO FUNDS EARMARKED FOR THE CREATION OF NEW INDUSTRIAL JOBS WERE USED TO BUILD A STATUE OF A GIANT KILLER BEE IN CAMERON OFFICIALS ARE USING SIMILAR FUNDS TO KEEP THE LOCAL HOSPITAL AFLOAT AND IN KEMAH OFFICIALS APPROVED USING SUCH MONEY FOR THE PURCHASE AND STRINGING OF CHRISTMAS LIGHTS IN THE TOWN IT'S KIND OF A CONSTANT BATTLE TO KEEP THIS MONEY RESERVED FOR WHAT IT WAS INTENDED FOR SAYS SEN BILL RATLIFFE A REPUBLICAN FROM MOUNT PLEASANT THERE ARE GOING TO BE CASES WHERE PEOPLE DON'T USE IT WISELY IF ANYBODY KNOWS THE PURPOSE OF THIS MONEY IT'S MR RATLIFFE IN 1989 HE SPONSORED THE LEGISLATION THAT GAVE TEXAS' SMALLER CITIES THOSE IN COUNTIES WITH FEWER THAN 500000 PEOPLE THE OPPORTUNITY TO COLLECT UP TO A 1/2CENT SALES TAX PROVIDED THE PROCEEDS WERE USED FOR THE CREATION OF INDUSTRIAL JOBS THE LAW WAS AMENDED TWO YEARS LATER PERMITTING SOME LARGER CITIES TO COLLECT THE TAX AND USE IT FOR A BROADER RANGE OF PURPOSES ARLINGTON'S 190 MILLION STADIUM WAS PRIMARILY FINANCED BY THE TAX CURRENTLY 119 CITIES LEVY THE SALES TAX WHICH HAS GENERATED MORE THAN 150 MILLION SINCE 1989 AND LAST MONTH 15 NEW CITIES VOTED TO BEGIN COLLECTING THE TAX THE INCENTIVES HAVE BECOME A VERY BIG PART OF ECONOMIC DEVELOPMENT IN TERMS OF RECRUITING COMPANIES AND IN KEEPING THE ONES YOU HAVE SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORP THE AGENCY THAT OVERSEES THE SPENDING OF THE SALES TAX THEY ARE PARTICULARLY NECESSARY TOOLS IN COMMUNITIES THAT ARE OUTSIDE THE MAJOR URBAN AREAS MR BOURN SAYS THAT AMARILLO HAS SPENT ABOUT 20 MILLION TO SPONSOR 24 PROJECTS THAT ARE EXPECTED TO CREATE 4400 DIRECT AND INDIRECT JOBS BUT CONCERN THAT THE TAX IS BEING MISUSED HAS RAISED THE POSSIBILITY THAT THE LEGISLATURE WILL CRACK DOWN EITHER BY REQUIRING STATE APPROVAL FOR EXPENDITURES IMPOSING STRICTER GUIDELINES OR DOING AWAY WITH THE TAX ALTOGETHER IT CAN AND SHOULD BE A VALUABLE TOOL FOR THE ECONOMIC DEVELOPMENT OF TEXAS SAYS BILL R SHELTON MANAGING DIRECTOR OF THE CORNERSTONE GROUP A FORT WORTH CONSULTING FIRM THAT HAS CONDUCTED SURVEYS ON CITIES' USE OF THE TAX THE ABUSES UNFORTUNATELY ARE NOT GOING UNNOTICED THOSE ABUSES CRITICS SAY COVER A WIDE RANGE SOME TOWNS THEY SAY SPEND MONEY ON PROJECTS THAT APPEAR TO BE CLEARLY OUTSIDE THE PURPOSE OF CREATING INDUSTRIAL JOBS BUYING CHRISTMAS LIGHTS FOR INSTANCE OR EXPANDING THE COUNTY COURTHOUSE BUT A BIGGER PROBLEM CRITICS CHARGE IS THAT MANY SMALL TOWNS DON'T HAVE THE EXPERTISE TO EVALUATE INVESTMENT OPTIONS AND END UP THROWING MONEY AWAY ON QUESTIONABLE PROJECTS THAT SOME SUGGEST IS WHAT HAPPENED IN COPPERAS COVE A CITY OF 24000 NEAR KILLEEN THE PROBLEMS STARTED WHEN THE BOARD OF THE LOCAL ECONOMICDEVELOPMENT CORPORATION GUARANTEED A 14000 LOAN TO A LOCAL PHOTOGRAPHY STUDIO THE STUDIO OFFICIALS SAY WANTED TO HIRE ANOTHER EMPLOYEE AND PURCHASE NEW EQUIPMENT IN ORDER TO EXPAND INSTEAD THE COMPANY DEFAULTED ON THE LOAN AND LEFT TOWN WITH THE COLLATERAL BUT THAT'S NOT THE WORST OF IT THE BOARD LAST YEAR ALSO BACKED A LOAN FOR MORE THAN 1 MILLION FOR NO TOUCH INC A STARTUP CONTAINERMANUFACTURING COMPANY SIX MONTHS LATER THE BOARD GUARANTEED ANOTHER 300000 LOAN THIS ONE FROM THE LOCAL BANK AND IN ANTICIPATION OF THE SUPPORT OPERATIONS NO TOUCH WOULD NEED THE BOARD GUARANTEED A 49000 LOAN FOR THE COVE TOOL & DIE MFG CO A COPPERAS COVE FIRM BUT LATE LAST YEAR CITY OFFICIALS SAY NO TOUCH FILED FOR REORGANIZATION UNDER THE BANKRUPTCY LAWS COVE TOOL QUICKLY FOLLOWED AND NOW THE COPPERAS COVE ECONOMIC DEVELOPMENT CORP IS REPAYING ALL THE DEBT THE EPISODE HAS ALL BUT DEPLETED THE CITY'S ECONOMICDEVELOPMENT FUNDS AND PROMPTED CALLS TO REPEAL THE TAX AND DISBAND THE CORPORATION AFTER TWO YEARS OF COLLECTING AN ESTIMATED 12 MILLION IN TAX FUNDS THE CORPORATION IS LEFT WITH A BALANCE OF ABOUT 33500 AND IT STILL HAS TO PAY OFF MOST OF THE 1 MILLION LOAN TWO WEEKS AGO THE ECONOMIC DEVELOPMENT BOARD FIRED EXECUTIVE DIRECTOR AND FORMER CITY MAYOR JIM FRENCH WE CREATED THE ECONOMICDEVELOPMENT CORPORATION IN HOPES OF DIVERSIFYING OUR ECONOMY SAYS TERESA CLEGHORN EDITOR OF THE COPPERAS COVE LEADERPRESS THE TOWN'S WEEKLY NEWSPAPER INSTEAD OF HAVING HUNDREDS OF NEW JOBS WE HAVE A LOT OF PEOPLE WHO ARE UNEMPLOYED BECAUSE THE COMPANIES THEY WERE WORKING FOR ARE IN BANKRUPTCY OTHER TOWNS HAVE BEEN CRITICIZED FOR PUTTING THE TAX MONEY INTO PROJECTS THAT ARE OUTSIDE THE LEGISLATION'S REQUIREMENTS WHETHER THE SPENDING IS ILLEGAL HASN'T BEEN TESTED BUT THERE'S NO QUESTION THAT SOME OF THE PROJECTS HAVE BEEN WELL ODD IN HIDALGO THE CITY SPENT NEARLY 20000 IN 1992 TO ERECT A FIBERGLASS AND STEEL STATUE OF THE KILLER BEE HIDALGO SAY CITY OFFICIALS WAS THE PLACE WHERE THE AFRICANIZED HONEY BEES FIRST CROSSED INTO THE US IN 1990 THE BIG BEE WAS FUNDED WITH ECONOMICDEVELOPMENT TAX FUNDS UNDER PROVISIONS THAT ALLOW SOME OF THE MONEY TO BE SPENT ON MARKETING AND PROMOTION HIDAGLO OFFICIALS CONCEDE THE BEE PROBABLY SEEMS SILLY TO OUTSIDERS BUT THEY MAKE NO APOLOGIES THE BEE THE CITY CLAIMS HAS GENERATED MUCH MORE THAN 20000 WORTH OF NATIONAL PUBLICITY AND TOUR BUSES NOW STOP TO SEE THE BEE WE HAVE OVER 25000 CARS THAT COME ACROSS THE INTERNATIONAL BRIDGE EVERY DAY GOING TO AND FROM MCALLEN BUT THEY JUST DRIVE THROUGH OUR TOWN SAYS JOE VERA PRESIDENT OF THE HIDALGO CHAMBER OF COMMERCE WE FEEL LIKE WE'VE DETOURED SOME OF THAT TRAFFIC IN THE EAST TEXAS CITY OF ATHENS ABOUT 3 MILLION IN SALESTAX FUNDS WERE USED TO WOO A FISH HATCHERY BUT WHAT MADE THIS DEAL UNUSUAL IS THAT IT IS A STATEOPERATED FISH HATCHERY OTHER CITIES SUCH AS ABILENE AND AMARILLO HAVE USED THE TAX FUNDS TO COURT STATEOPERATED PRISONS BUT THE FISH HATCHERY HAS PROMPTED THE MOST CRITICISM BECAUSE PRISONS AT LEAST CAN CREATE HUNDREDS OF JOBS THE FISH HATCHERY SCHEDULED FOR GROUNDBREAKING THIS MONTH SHOULD CREATE 19 JOBS IT IS CERTAINLY ON THE MARGINS OF GOOD USE FOR IT SAYS SEN RATLIFFE WHO WHILE RELUCTANT TO CRITICIZE USE OF THE MONEY FOR PRISONS CONCEDES IT'S A LITTLE IRONIC THEY WOULD USE IT TO ATTRACT STATE PAYROLL ATHENS OFFICIALS ADMIT 3 MILLION FOR 19 JOBS PROBABLY SOUNDS LIKE A BAD DEAL BUT THEY ARGUE THAT THE FISH HATCHERY WILL BOOST TOURISM ALTHOUGH CITY OFFICIALS SAY ATHENS NOW ATTRACTS ABOUT 60000 TOURISTS A YEAR THEY CLAIM A STUDY FOUND THE FISH HATCHERY WOULD BOOST THAT NUMBER BY 300000 TO 500000 PEOPLE THIS PART OF TEXAS IS WELL KNOWN FOR ITS BASS FISHING SAYS DON MANNING ATHENS CITY MANAGER WHO SAYS THAT THE CITY ALSO HAS USED ITS SALESTAX MONEY TO ATTRACT A MEDICALSUPPLY COMPANY ONE OF THE MOST QUESTIONABLE USES OF THE TAX FUNDS IS IN CAMERON WHERE ALL OF THE CITY'S ESTIMATED 339000 IN SALESTAX COLLECTIONS HAS GONE TOWARD PAYING OFF 600000 IN OPERATING BONDS FOR CENTRAL TEXAS HOSPITAL TEXAS ATTORNEY GENERAL DAN MORALES HAS ISSUED AN OPINION STATING THAT THE TAX MONEY CAN NOT BE USED TO SUPPORT HOSPITALS BUT THE PRACTICE CONTINUES THEY JUSTIFIED IT BY SAYING THAT IF THERE WASN'T A HOSPITAL THAT INDUSTRY WOULDN'T STAY OR WOULDN'T COME INTO CAMERON SAYS JANET SHEGUIT TAX ASSESSOR COLLECTOR ONE OTHER CONCERN ABOUT THE WAY THE TAX HAS WORKED OUT TEXAS TOWNS AREN'T ONLY COMPETING WITH OTHER STATES FOR NEW JOBS THEY'RE COMPETING WITH EACH OTHER THE CITY OF ALLEN FOR INSTANCE SCORED BIG WHEN IT CONVINCED TRW INFORMATION SYSTEMS A UNIT OF TRW INC CLEVELAND TO CONSOLIDATE OFFICES PREVIOUSLY LOCATED IN RICHARDSON DALLAS AND ANAHEIM CALIF IN ALLEN BRINGING WITH IT 1000 JOBS BUT ALLEN'S SUCCESS CAME AT THE EXPENSE OF DALLAS AND RICHARDSON NEITHER OF WHICH ARE ELIGIBLE TO COLLECT THE TAX IN SOME WAYS IT GIVES US A MUCH GREATER ADVANTAGE OVER CITIES THAT DON'T HAVE THE TAX SAYS DAVID PITSTICK DIRECTOR OF THE ALLEN ECONOMIC DEVELOPMENT CORP BUT IF WE DIDN'T HAVE IT COULD WE COMPETE WITH BIGGER CITIES NO WAY DESPITE ALL THE PROBLEMS SEN RATLIFFE IS HESITANT TO CALL FOR CHANGES IN THE LAW THE BOTTOM LINE HE SAYS IS THAT ELECTED CITY OFFICIALS DECIDE HOW TO SPEND THE MONEY EITHER BY THEMSELVES OR THROUGH THEIR APPOINTED REPRESENTATIVE I ASSUME THESE PLACES HAVE VOTERS SEN RATLIFFE SAYS AND IF THEY THINK THIS MONEY IS NOT BEING SPENT THE WAY IT OUGHT TO BE SOMEBODY OUGHT TO BE CALLED TO ANSWER FOR IT BUT AS A RESULT OF THE CONCERNS STATE ECONOMICDEVELOPMENT OFFICIALS ARE WORKING WITH CITIES TO CLARIFY THE DOS AND DON'TS THE TEXAS INDUSTRIAL DEVELOPMENT COUNCIL INC WHOSE MEMBERS INCLUDE ECONOMICDEVELOPMENT CORPORATIONS AND CHAMBERS OF COMMERCE IS CREATING A SPECIAL NEWSLETTER JUST FOR THOSE CITIES THAT COLLECT THE TAX TWO INFORMATION MEETINGS IN PLANO AND SAN ANTONIO ALSO ARE SCHEDULED IN THE COMING MONTHS AND THE GROUP IS SOLICITING INPUT FROM MEMBERS TO DETERMINE WHETHER TO LOBBY FOR CHANGES IN THE LAW DURING THE NEXT LEGISLATIVE SESSION THE TAX IS BEGINNING TO BE JUST ANOTHER REVENUE SOURCE FOR THE CITY IT'S NOT BEING USED TO CREATE NEW JOBS SAYS JOE NEWMAN EXECUTIVE DIRECTOR OF THE INDUSTRIAL DEVELOPMENT COUNCIL WE'RE VERY CONCERNED THAT IT'S GOING TO DILUTE THE ORIGINAL PURPOSE OF THE BILL QUITE A BIT SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR ROTTEN APPLES WSJ FEB 9 1994 9402020120 YY94 MM02 9402090075 940209 CREDIT MARKETS RATE BOOST TAKES TOLL ON BONDS PRICES KEEP FALLING LACKLUSTER DEMAND AT TREASURY AUCTION BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SO FAR THE FEDERAL RESERVE'S MOVE TO BOOST SHORTTERM INTEREST RATES AND REDUCE INFLATIONARY PRESSURES HAS BEEN BITTER MEDICINE FOR US BOND MARKETS IT'S TOO EARLY TO TELL IF IT'S WORKING BUT NERVOUS INVESTORS AND MONEY MANAGERS WHO MUST MAKE DECISIONS NOW ON WHERE TO PUT THEIR MONEY ARE SELLING BONDS PUSHING PRICES LOWER LACKLUSTER DEMAND AT YESTERDAY'S 17 BILLION AUCTION OF THREEYEAR NOTES BY THE TREASURY THE FIRST OF THREE AUCTIONS THAT COMPRISE ITS QUARTERLY REFUNDING WAS ONE SIGN OF HOW DISTASTEFUL THE MEDICINE HAS BEEN ANOTHER SIGN WAS THE DROP IN BOND PRICES THE BENCHMARK 30YEAR TREASURY BOND FELL MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH A 1000 FACE VALUE TO 97 10/32 SINCE THURSDAY WHEN SPECULATION ABOUT A RATE INCREASE ROILED THE MARKET THE PRICE OF THE 30YEAR BOND HAS FALLEN MORE THAN TWO POINTS ITS YIELD WHICH MOVES INVERSELY TO ITS PRICE ROSE TO 645 THE HIGHEST SINCE AUGUST OF LAST YEAR ASSESSING THE MOVE BOND INVESTORS ARE STILL TRYING TO DETERMINE IF THE FED ACTED TOO EARLY TOO LATE OR JUST IN TIME TO KEEP INFLATION FROM RISING AND GOUGING THE VALUE OF THEIR FIXEDINCOME HOLDINGS FOR CLUES THEY ARE LOOKING TO THE JANUARY PRODUCERPRICE INDEX AN INFLATION MEASURE WHICH IS SCHEDULED TO BE RELEASED ON FRIDAY SOME ANALYSTS FEAR SENTIMENT COULD WORSEN AS THE TREASURY SELLS ANOTHER 33 BILLION OF 10YEAR NOTES TODAY AND 30YEAR BONDS TOMORROW THE PSYCHOLOGICAL CONDITION OF THE MARKET CONTINUES TO BE ABSOLUTELY ABYSMAL SAYS F WARD MCCARTHY MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES OF PRINCETON NJ DISORIENTATION IS A GOOD WAY TO DESCRIBE MARKET SENTIMENT SAYS MATTHEW ALEXY A GOVERNMENTTRADING STRATEGIST AT CS FIRST BOSTON INVESTORS DON'T KNOW IF THE FED IS AHEAD OF THE CURVE OR JUST STRUGGLING TO KEEP UP IN ITS BATTLE AGAINST INFLATION PEOPLE ARE RECUPERATING FROM THE FIRST FED TIGHTENING SINCE FEBRUARY 1989 AND THEY'RE TRYING TO RECOVER FROM THE DREADFUL PRICE ACTION OF THE PAST WEEK SAYS MR MCCARTHY THERE IS ALSO SOME CONCERN THAT THE MARKET HAS TO ABSORB ALL THIS SUPPLY HE ADDS MANY INVESTORS WERE LOOKING TO THE THREEYEAR NOTE AUCTION FOR EVIDENCE THAT THE MARKET WAS REGAINING STRENGTH SAYS MR MCCARTHY BUT THAT DIDN'T HAPPEN ALTHOUGH ON THE SURFACE THE AUCTION APPEARED TO DRAW DECENT DEMAND TRADERS SAID MUCH OF THE BUYING WAS TO CLOSE OUT SHORT POSITIONS THOSE POSITIONS INVOLVE TRADERS WHO SOLD BORROWED THREEYEAR NOTES IN HOPES THAT PRICES WOULD DROP ALLOWING THEM TO REPLACE THEIR BORROWINGS WITH CHEAPER NOTES BOUGHT AT THE AUCTION AND POCKET THE DIFFERENCE OMINOUSLY THERE WAS LITTLE INTEREST IN THE THREEYEAR NOTES FROM BANKS AND OTHER TRADITIONAL TREASURY BUYERS SAYS MR MCCARTHY THE TREASURY DEPARTMENT AWARDED ITS 17 BILLION OFFERING OF THREEYEAR NOTES AT AN AVERAGE YIELD OF 483 COMPARED WITH AN AVERAGE YIELD OF 444 AT THE LAST THREEYEAR NOTE AUCTION IN NOVEMBER BUT IN TRADING AFTER THE AUCTION THE SOCALLED WHENISSUED YIELD OF THE THREEYEAR NOTE ROSE TO 484 A SIGN OF WEAKENING DEMAND THE BIDCOVER RATIO WHICH COMPARES THE NUMBER OF BIDS SUBMITTED WITH THE NUMBER OF BIDS ACCEPTED WAS ABOUT AVERAGE AT 266TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM BUYERS OUTSIDE THE DEALER COMMUNITY WERE ALSO NEAR THE RECENT AVERAGE AT 846 MILLION THE AUCTION WAS SORT OF NEUTRAL AT BEST SAID MR ALEXY OF CS FIRST BOSTON WITH MOST OF THE 17 BILLION THREEYEAR OFFERING STILL SLOSHING AROUND IN THE HANDS OF WALL STREET DEALERS THE BOND MARKET WAS UNABLE TO SHAKE ITS RECENT SOUR TONE THE MARKET WAS WEAK BECAUSE PEOPLE FIGURED THAT IF THE TREASURY HAD TROUBLE WITH THE THREEYEAR NOTE AUCTION THE 10YEAR NOTE AUCTION WOULD GO THE SAME WAY SAID MR MCCARTHY INVESTORS ARE GOING TO DEMAND A GREATER PREMIUM PUSHING UP YIELDS FOR THE 10YEAR NOTE AT TODAY'S AUCTION AND THE 30YEAR BOND AT TOMORROW'S AUCTION SAYS MR ALEXY A RISE IN YIELDS TO 6 FOR THE 10YEAR NOTE AND 65 FOR THE 30YEAR BOND BY WEEK'S END WOULD NOT SURPRISE ME HE ADDS LATE YESTERDAY THE WHENISSUED 10YEAR NOTE YIELDED 595 UP FROM 590 ON MONDAY MEANWHILE THE WHENISSUED 30YEAR BOND WHICH IS A REOPENING OF THE 625 30YEAR BOND WAS CHANGING HANDS AT 645 ONCE THE BOND MARKET WEATHERS THE DELUGE OF SUPPLY IT WILL HAVE TO DEAL WITH THE PRODUCERPRICE INDEX ON FRIDAY ACCORDING TO MR ALEXY IF THE CORE INDEX WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY SECTORS SHOWS A 03 INCREASE IN JANUARY OVER THE PREVIOUS MONTH THAT WOULD BE NEUTRAL TO POSITIVE FOR THE BOND MARKET HOWEVER IF IT'S BIGGER THAN THAT YOU'RE GOING TO BE LEFT TO SWEAT IT OUT AND THERE WILL BE QUESTIONS ABOUT WHEN THE NEXT FED TIGHTENING IS COMING HE SAYS MR MCCARTHY SAYS INVESTORS OUGHT TO BE PREPARED FOR BAD NEWS ON FRIDAY WE'RE PROBABLY GOING TO GET THE WORST INFLATION NUMBERS WE'VE SEEN IN A NUMBER OF MONTHS HE PREDICTS HE'S LOOKING FOR AN INCREASE OF 04 IN THE CORE PPI THAT'S NOT AN EARTHSHATTERING NUMBER BUT IT'S DISCONCERTING AND PEOPLE WILL BE ON GUARD FOR THE NEXT MOVE BY THE FED TO RAISE RATES HE SAYS LAST FRIDAY THE FED PUSHED UP THE TARGET FOR THE FEDERALFUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY TO 325 FROM 3 SOME ECONOMISTS SAY THE FUNDS RATE WILL BE 35 BEFORE TOO LONG POSSIBLY BY THE END OF MARCH 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 NOTES ARE DATED FEB 15 1994 AND MATURE FEB 15 1997 BONDS OF CELLULARCOMMUNICATION COMPANIES DROPPED IN ANTICIPATION OF NEXTEL COMMUNICATIONS INC'S JUMBO JUNKBOND OFFERING WHICH IS SCHEDULED TO BE SOLD TODAY NEXTEL IS EXPECTED TO INCREASE THE SIZE OF ITS 10YEAR SENIOR DISCOUNT NOTE TO BETWEEN 600 MILLION AND 700 MILLION FROM 400 MILLION HOWEVER NEXTEL ALSO RAISED THE EXPECTED YIELD ON THE NOTES TO COMPENSATE FOR THE DEAL'S LARGE SIZE AND IN REACTION TO RISING INTEREST RATES IN THE TREASURY MARKET ORIGINALLY THE PAPER WAS MARKETED AT 9375 BUT IT WILL PROBABLY BE PRICED AROUND 975 SYNDICATE OFFICIALS SAID THE BONDS OF CENCALL COMMUNICATIONS CORP AND THE NEXTEL BONDS OUTSTANDING TRADED LOWER MOST TRADERS SAY PRICES WILL RISE AGAIN AFTER NEXTEL'S NEW DEAL IS PRICED AND ABSORBED INTO THE MARKET CENCALL'S ZEROCOUPON BONDS DUE 2004 DROPPED BY ONE POINT OR 10 FOR A BOND WITH A 1000 FACE VALUE TO 63 THE YIELD ROSE TO 979 FROM 958 ZEROCOUPON BONDS PAY NO INTEREST AND ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE NEXTEL'S ZEROCOUPON BONDS MATURING IN 2003 DROPPED 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 68 THE YIELD ROSE TO 97 FROM 952 UPCOMING TREASURY AUCTIONS COMBINED WITH BAD WEATHER TO PUT A DAMPER ON THE CORPORATE NEW ISSUE MARKET AND ONLY 675 MILLION OF DEBT WAS PRICED TRADING IN THE INVESTMENTGRADE MARKET WAS MODERATE WITH MOST OF THE ATTENTION CENTERED ON TREASURY AUCTIONS PRICES FOLLOWED TREASURYS LOWER LEAVING SPREADS MOSTLY UNCHANGED YIELD SPREADS OF TRIPLEB RATED CORPORATE SECURITIES OVER TREASURYS TIGHTENED BY ABOUT 002 PERCENTAGE POINT ONE TRADER SAID TAPPING THE LONGEND OF THE YIELD CURVE PAINEWEBBER GROUP SOLD 200 MILLION OF 20YEAR DEBT WHILE CONSOLIDATED EDISON CO OF NEW YORK INC ISSUED 150 MILLION OF 35YEAR PAPER THE LONGEST DEBT SOLD THIS YEAR THE BONDS TRADED UP HOWEVER BY 050 POINT OR 500 FOR A BOND WITH A 1000 FACE VALUE TO 10050 THE YIELD DROPPED TO 905 RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE NONCALLABLE NOTES WERE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MUNICIPAL BONDS WEAKENED FOR THE FOURTHSTRAIGHT SESSION AND FINISHED 1/4 TO 3/4 POINT LOWER SALES OF TREASURYS MUNIS AND OTHER US BONDS WERE SET IN MOTION LATE LAST WEEK BY THE FEDERAL RESERVE'S TIGHTENING OF ITS MONETARY POLICY THE REEDY CREEK IMPROVEMENT DISTRICT FLORIDA 500 BONDS DUE 2019 WERE DOWN 3/4 AT 94 1/4 YIELDING 538 THE NEW YORK AND FLORIDA BONDS WERE PRICED TO YIELD 535 LATE MONDAY BUT THE PRICE DECLINE NUDGED THE YIELDS UP ALTHOUGH LAST WEEK'S FED TIGHTENING WAS RATHER MODEST THE ACTION CONTINUES TO TAKE A TOLL ON MUNIS TRADERS SAY FRIDAY REALLY REPRESENTED A PSYCHOLOGICAL CHANGE IN THE MARKETPLACE SAID GREGORY GIZZI A TRADER AT DILLON READ THERE IS VERY VERY LITTLE CUSTOMER INTEREST IN MUNIS FOLLOWING THE CENTRAL BANK'S SHIFT TO A TIGHTENING MODE HE SAID NOTING THAT THE MARKET'S CURRENT CONDITION IS IN A WORD UGLY MORTGAGES LOST GROUND BUT NOT NEARLY AS MUCH AS TREASURYS AS A RESULT YIELDS ON CURRENT COUPON MORTGAGES NARROWED BY ABOUT THREE BASIS POINTS TO THE YIELD ON THE TREASURY'S 10YEAR NOTE A PRICING BENCHMARK FOR CURRENT COUPONS THE TIGHTENING OF MORTGAGE SPREADS REFLECTS SEVERAL FACTORS THAT CONTINUE TO BUOY THE MORTGAGE MARKET AMONG THEM LIGHT SELLING OF NEW SECURITIES BY MORTGAGE BANKERS ANOTHER REASON IS THAT BUYERS ARE STILL LOOKING FOR HIGHQUALITY SECURITIES THAT HAVE MORE YIELD THAN IS AVAILABLE IN TREASURYS OR EVEN CORPORATES IN SECONDARY TRADING GINNIE MAE 65S WERE OFF 4/32 AT 98 21/32 FREDDIE MAC 65S WERE OFF 4/32 AT 98 27/32 AND FANNIE MAE 65S WERE OFF 4/32 AT 98 20/32 THE TREASURY SELLOFF HAS ALSO GIVEN A BOOST TO MORTGAGES BY ELIMINATING ANY LINGERING FEARS OF A MINIREFINANCING WAVE PARTICIPANTS HAVE BEEN WORRIED THAT MORTGAGE RATES WERE STILL LOW ENOUGH TO TRIGGER PREPAYMENTS IN OUTSTANDING MORTGAGE SECURITIES JANUARY PREPAYMENT DATA RELEASED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ON MONDAY QUELLED SOME OF THOSE CONCERNS THE FIGURES SHOWED PREPAYMENT SPEEDS DROPPING ACROSS THE BOARD ACCORDING TO PAINEWEBBER PREPAYMENT SPEEDS OF FANNIE MAE AND GINNIE MAE SECURITIES UNDER THE PUBLIC SECURITIES ASSOCIATION MODEL FELL 30 TO 40 THE PREPAYMENT NEWS HELPED PRICES OF MOST INTERESTONLY SECURITIES OR BONDS CREATED SOLELY FROM THE INTEREST OF AN UNDERLYING POOL OF MORTGAGE LOANS THOMAS D LAURICELLA CONTRIBUTED TO THIS REPORT 9402090074 940209 TECHNOLOGY & ENVIRONMENT TCI EXMANAGERS ALLEGE BIAS SEEK TO BAR ACQUISITION BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL TWO BLACK FORMER MANAGERS OF TELECOMMUNICATIONS INC HAVE FILED A LAWSUIT SEEKING CLASSACTION STATUS THAT SEEKS TO BLOCK TCI'S ACQUISITION BY BELL ATLANTIC CORP ALLEGING A PATTERN OF RACIAL DISCRIMINATION CALVIN SMILEY AND LEONIE ELIZABETH PALUMBO WHO SAID THEY WERE AMONG THE HIGHESTRANKING BLACKS AT TCI WHEN THEY LEFT THE COMPANY LAST FALL FILED THE LAWSUIT IN FEDERAL COURT IN WASHINGTON DC THEY ALLEGE THAT TCI HAS ENGAGED IN A WIDESPREAD EFFORT TO TERMINATE HIGHLEVEL BLACK EMPLOYEES THE SUIT ALSO CHARGES THAT TCI A MAJOR CABLE COMPANY NO LONGER EMPLOYS ANY BLACK TOP MANAGERS IN MAJOR URBAN MARKETS AND THAT IT LIMITS PROMOTIONAL OPPORTUNITIES FOR BLACK CANDIDATES THE CASE WAS ONE OF THREE RACIALDISCRIMINATION LAWSUITS FILED AGAINST TCI YESTERDAY BY LAWYER STEPHEN L SNYDER HE PREVIOUSLY LOGGED ANOTHER CASE IN WHICH TCI ENDED UP AGREEING TO A SETTLEMENT WITH TWO BLACK INVESTORS IN BALTIMORE VALUED AT AN ESTIMATED 100 MILLION IN STOCK AND CASH THE COMPLAINTS YESTERDAY FOLLOW SIMILAR CRITICISMS LEVELED AGAINST TCI BY THE NAACP AND THE LEAGUE OF UNITED LATIN AMERICAN CITIZENS WHICH HAVE ACCUSED TCI OF BEING THE WORST DISCRIMINATOR IN THE TELECOMMUNICATIONS INDUSTRY IT ISN'T CLEAR WHETHER THE CLASSACTION LAWSUIT WILL BE AT ALL SUCCESSFUL IN DERAILING OR DELAYING THE BELL ATLANTIC ACQUISITION TCI'S LAWYER VINCENT COHEN OF THE WASHINGTON LAW FIRM OF HOGAN AND HARTSON DISMISSED ALL OF THE ALLEGATIONS IN THE THREE SUITS AS FALSE HE SAID ANY TERMINATIONS OR OTHER MATTERS RAISED IN THE COMPLAINTS WEREN'T RACERELATED AND THAT THE SUITS DON'T TROUBLE US THEY'LL BE DISMISSED IN 90 DAYS THE COMPLAINTS WERE FILED CLEARLY TO GET MEDIA ATTENTION THE TCI LAWYER CONTENDED MR SNYDER THE PLAINTIFFS' ATTORNEY LEVELED SOME UNUSUAL CHARGES AT TCI THEY'VE DONE SOME BIZARRE THINGS THE BALTIMORE LAWYER SAID IN ADDITION TO THE CLASSACTION SUIT HE FILED TWO LAWSUITS IN BALTIMORE CITY COURT ONE ALLEGES THAT AT TCI'S BALTIMORE SYSTEM ARMED SECURITY PERSONNEL GRILLED 27 BLACK EMPLOYEES IN A MAKESHIFT HOLDING PEN FOR HOURS IN INVESTIGATING CONVERTERBOX THEFT THE SUIT ALSO ALLEGES THAT TCI HIRED PRIVATE INVESTIGATORS TO GATHER PERSONAL INFORMATION ON SOME EMPLOYEES AND PLACED ILLEGAL WIRETAPS ON THEIR OFFICE PHONES THE SECOND CITY SUIT FILED ON BEHALF OF FIRED BLACK MANAGER EUAN FANNELL ACCUSES TCI'S BALTIMORE OFFICE OF PLANTING COCAINE IN MR FANNELL'S OFFICE AND CAR THEN TIPPING OFF LOCAL POLICE ON WHEN AND WHERE TO NAB HIM WITH THE CONTRABAND MR FANNELL ONE OF THE HIGHESTRANKING BLACKS AT TCI AT THE TIME WAS FIRED BY THE COMPANY LAST OCTOBER 9402090073 940209 TEXAS JOURNAL LETTERS TO THE EDITOR ROTTEN APPLES YOUR ARTICLE IN THE FEB 2 EDITION ON THE USES OF THE SALES TAX FOR ECONOMIC DEVELOPMENT TAX AIMED AT THE CREATION OF JOBS MISSES MARK DWELT ON THE ACTIONS OF CITIES THAT HAVE ABUSED OR MISUSED THE REVENUE FORTUNATELY MOST OF THE 136 CITIES THAT HAVE AUTHORIZED COLLECTION UNDER THE LEGISLATION ARE USING THE FUNDS IN A CONSTRUCTIVE MANNER TO ADVANCE THEIR RESPECTIVE ECONOMICDEVELOPMENT PROGRAMS UNFORTUNATELY THE RELATIVELY FEW THAT ARE ABUSING THE PRIVILEGE MAY SPOIL IT FOR THE VAST MAJORITY WHO ARE COMPLYING WITH THE SPIRIT OF THE LEGISLATION 9402090072 940209 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE SLIGHTLY TO 1115 FROM 1112 IN THE YEAREARLIER PERIOD AS A DIP IN INITIAL UNEMPLOYMENT CLAIMS OVERSHADOWED A SLIGHT DROP IN TEXAS REFINERY OUTPUT CONTINUING A RECENT TREND THE YEAROVERYEAR GROWTH RATE IN THE INDEX ROSE TO 294 IN THE LATEST WEEK FROM 284 IN THE PRIOR WEEK 9402090071 940209 TEXAS JOURNAL WINNERS & LOSERS BLUE CROSS AND BLUE SHIELD OF TEXAS THE INSURER BEAT OUT SEVEN COMPETITORS IN A BID TO ADMINISTER A NEW HEALTHINSURANCE POOL FOR SMALL BUSINESSES CYRIX ARCHRIVAL INTEL AGREED TO PAY THIS RICHARDSON MICROCHIP MAKER 5 MILLION AND DROP CERTAIN PATENTINFRINGEMENT CLAIMS PREGNANT WOMEN HOUSTONBASED APROGENEX SAID IT DEVELOPED A GENETIC TEST THAT COULD EVENTUALLY REPLACE AMNIOCENTESIS A SOMETIMES RISKY WAY TO DETECT FETAL DISORDERS REAL COWBOYS ATTENDANCE AT THE FORT WORTH STOCK SHOW WAS DOWN SLIGHTLY BECAUSE OF BAD WEATHER AND COMPETITION FROM DALLAS COWBOYS' GAMES TITUS COUNTY RESIDENTS OF THIS NORTHEAST TEXAS COUNTY APPEAR TO SUFFER HIGHERTHANNORMAL RATES OF TWO CANCERS ACCORDING TO A NEW STUDY COMPUSA A RASH OF PRODUCT THEFTS CONTRIBUTED TO THIS DALLAS COMPUTER CHAIN'S SECOND CONSECUTIVE QUARTERLY LOSS 9402090070 940209 TEXAS JOURNAL LETTERS TO THE EDITOR TEXAS MUTUAL FUNDS TEN YEARS ISN'T FAIR I READ YOUR JAN 26 ARTICLE ON MUTUAL FUNDS TEXAS MUTUAL FUNDS RETURNS ARE IN AND I WONDERED WHICH AMERICAN CAPITAL ASSET MANAGEMENT INC YOU WERE REVIEWING THE DAY BEFORE I HAD RECEIVED THE 1993 SURVEY OF BROKERS WHO RECOMMEND VARIOUS FUND GROUPS TO THEIR CLIENTS AMERICAN CAPITAL RANKED NO 1 IN FOUR OF SIX CATEGORIES AND NO 3 AND NO 4 IN THE OTHER TWO SINCE 1987 WHEN DON POWELL CHAIRMAN OF AMERICAN CAPITAL AND DON MCMULLEN PRESIDENT CAME TO HOUSTON WITH THE MISSION OF MAKING AMERICAN CAPITAL THE PREMIER MUTUALFUND COMPANY IN THE COUNTRY THEIR TURNAROUND HAS BEEN A SUCCESS STORY AS RATED BY THE BROKERS IT IS CURRENTLY RATED NO 1 IN OVERALL SERVICE QUALITY MARKETING SUPPORT PROBLEM RESOLUTION/ERROR CORRECTION AND WHOLESALER SUPPORT I HAVE AS AN INDEPENDENT BROKER FOLLOWED ALL MAJOR MUTUALFUND COMPANIES THROUGHOUT MY 26YEAR CAREER AND CAN ATTEST TO THE SUCCESS MY CLIENTS WHO OWN AMERICAN CAPITAL PRODUCTS HAVE ENJOYED RECENTLY I RAN AN ANALYSIS FOR MANY OF MY CUSTOMERS WHO UPON MY RECOMMENDATION PURCHASED AMERICAN CAPITAL EMERGING GROWTH A FUND THREE YEARS AGO THEIR ACCOUNTS HAD COMPOUNDED AT A RATE OF 355 A YEAR OR 14896 FROM SEPT 30 1990 THROUGH SEPT 30 1993 AND THE TRACK RECORD OF MANY AMERICAN CAPITAL FUNDS SINCE THIS TIME HAS BEEN IMPRESSIVE THE ISSUE IS THIS TENYEAR PAST PERFORMANCE DOES NOT PREDICT THE FUTURE NOR DOES IT ACCURATELY REFLECT THE PAST IF A MAJOR CHANGE IN MANAGEMENT INVESTMENT STYLE OR OBJECTIVE IS INCLUDED IN THAT 10YEAR NUMBER HONESTY INTEGRITY QUALITY SERVICE COMMITMENT TO EXCELLENCE ACCURACY WHO DEVELOPS NUMBERS FOR THESE QUALITIES UNLESS YOU'VE PERSONALLY RECOMMENDED ANY OF THE FUNDS AND HAVE WITNESSED PEOPLE RETIRE WITH DIGNITY CHILDREN GROW UP AND RECEIVE DIPLOMAS FROM COLLEGE SEEN THE PEACE OF MIND WHEN A WIDOW RECEIVES A MONTHLY CHECK LIKE CLOCKWORK FROM HER NEST EGG AND REALIZES IT WAS BECAUSE YOU RECOMMENDED A WORLDCLASS MANAGER IT IS VIRTUALLY IMPOSSIBLE TO FEEL HOW PEOPLE RESPOND WHEN THEY READ AN ARTICLE IN THE WALL STREET JOURNAL WHOSE OVERALL CONCLUSION IS THAT TEXAS MUTUAL FUNDS' RETURNS ARE LOUSY 9402090069 940209 BUSINESS BRIEF ENGELHARD CORP CHEMICAL MAKER WILL TAKE A CHARGE OF 918 MILLION ENGELHARD CORP SAID IT WOULD TAKE A 918 MILLION RESTRUCTURING CHARGE CAUSING A FOURTHQUARTER LOSS OF 616 MILLION ENGLEHARD BASED IN ISELIN NJ SAID MOST OF THE 96 CENTS A SHARE CHARGE RELATED TO ASSETS WRITEOFFS BUSINESS RELOCATIONS AND EMPLOYEE COSTS WITH THE BALANCE FOR ENVIRONMENTAL MATTERS THE COMPANY SAID ITS ACTIONS WILL ALLOW IT TO FURTHER REALIGN AND CONSOLIDATE BUSINESSES CONCENTRATE RESOURCES AND BETTER POSITION ITSELF FOR THE YEAR ENGELHARD SAID NET INCOME 672000 OR ONE CENT A SHARE COMPARED WITH NET INCOME OF 106 MILLION OR 11 CENTS A SHARE A YEAR EARLIER 9402090068 940209 REVIEW & OUTLOOK EDITORIAL STRAIGHT TALK ON BOSNIA A MORTAR SHELL THAT SLAUGHTERED OR MAIMED SOME 268 PEOPLE SATURDAY IN A CROWDED MARKETPLACE IN SARAJEVO HAS TOUCHED OFF YET ANOTHER WESTERN DEBATE ON WHAT TO DO ABOUT BOSNIA AS IS EVIDENT FROM THE CONTINUED DITHERING ABOUT WHICH WESTERN LEADER IS IN CHARGE OF DECISIONS THE PREFERENCE IS FOR CONTINUING TO DO NOTHING AT LEAST NOTHING INVOLVING MILITARY FORCE THIS IS INCREASINGLY INCONSISTENT WITH THE EMOTIONS OF THE WESTERN PUBLIC STIRRED INTO A NEW BURST OF OUTRAGE BY TV FOOTAGE OF THE CARNAGE IN SARAJEVO THE WAR IS NOT GOING AWAY THE KILLING IS NOT ENDING BUT CONTINUING MANY WESTERN LEADERS WERE WILLING TO CONCEDE A SERBIAN VICTORY OUT OF A BELIEF THAT THE FIGHTING WOULD SUBSIDE INTO AN UNHAPPY MODUS VIVENDI FOR THE BOSNIAN MUSLIMS THE INEFFECTIVENESS OF THE WESTERN ALLIANCES AND THE UNITED NATIONS WOULD IN TIME BE FORGOTTEN BUT THAT IS NOT HAPPENING THE EVIDENCE IT IS NOT GOES WELL BEYOND SATURDAY'S AWFUL EVENT IN SARAJEVO WHAT IN FACT IS HAPPENING IS THAT THE BOSNIAN ARMY IS GAINING STRENGTH AND HAS BEGUN TO WIN BACK SOME OF THE TERRITORY LOST TO THE SERBS AND CROATS WHEN THOSE FORCES WERE HAVING THINGS THEIR OWN WAY THIS MEANS A CONTINUING WAR ABOUT WHICH NATO AND THE EUROPEAN UNION NEED TO MAKE SOME NEW DECISIONS THE FUNDAMENTAL DECISION IS WHETHER TO SUPPORT THE BOSNIANS OR LEAVE THEM TO THEIR OWN DEVICES THEIR OWN DEVICES ARE BECOMING MORE EFFECTIVE FOR THAT THEY OWE NO THANKS TO THE US EUROPE AND THE UN QUITE THE CONTRARY THE UN ARMS EMBARGO AT THE OUTSET OF THE WAR PUT THEM AT AN INITIAL DISADVANTAGE BECAUSE THE BOSNIAN SERBS COULD GET ARMS AND AMMUNITION FROM SERBIA BUT EMBARGOES ARE POROUS PARTICULARLY WHEN DESPERATE PEOPLE NEED WEAPONS AND HAVE FRIENDS ON THE OUTSIDE WHO ARE WILLING TO SUPPLY THEM PAUL BEAVER OF JANE'S INFORMATION GROUP WROTE IN THE WALL STREET JOURNAL EUROPE ON JANUARY 27 THAT THE BOSNIANS NOW ARE GETTING ARMS AND ORGANIZATIONAL AID FROM SEVERAL MUSLIM NATIONS HE REPORTED AN INFLUX OF SOME 2000 PROFESSIONAL FIGHTERS FROM PAKISTAN AFGHANISTAN MOROCCO ALGERIA AND OTHER ISLAMIC STATES THEY HAVE HELPED THE BOSNIANS TRANSFORM A RAGTAG ARMY INTO A FORCE OF 80000 TROOPS ARMED MOSTLY WITH LIGHT WEAPONS TWO SPECIAL BRIGADES MADE UP HEAVILY OF VOLUNTEERS HAVE PERFORMED ESPECIALLY WELL AGAINST SERBS AND CROATS IT WAS A MATTER OF NO SMALL SIGNIFICANCE THAT THE LEADERS OF TWO IMPORTANT MUSLIM STATES SHOWED UP LAST WEEK IN SARAJEVO TO SHOW THEIR SOLIDARITY WITH BOSNIA PRIME MINISTERS TANSU CILLER OF TURKEY AND BENAZIR BHUTTO OF PAKISTAN WEARING FLAK JACKETS APPEALED TO THE WORLD TO DEFEND BOSNIA AGAINST THE SAVAGERY OF ETHNIC CLEANSING BOTH COUNTRIES ARE IMPORTANT FRIENDS OF THE US IF THE WEST REALLY WANTED TO DO SOMETHING TO RELIEVE SARAJEVO IT WOULD REPEAL THE MISCONCEIVED ARMS EMBARGO AND THROW SUPPORT BEHIND THE BOSNIAN FORCES DOING IT NOT THROUGH THE TANGLED WEB OF THE UNITED NATIONS BUT THROUGH NATO GIVING THE BOSNIANS HEAVY WEAPONS OR AT LEAST SANCTIONING THOSE WHO MIGHT SUPPLY THEM WOULD FURTHER EVEN THE ODDS THE TURKS WHO MAY ALREADY BE ADVISING THE BOSNIANS COULD BE INVITED AS MEMBERS OF NATO TO HELP MANAGE THE EXERCISE ON THE GROUND THIS IN ITSELF MIGHT RESULT IN THE KIND OF BALANCE THAT HAS HISTORICALLY PRODUCED UNEASY PEACE IN UNEASY PARTS OF THE WORLD UNLIKE THE MAUNDERINGS OF A LORD OWEN ACTION THAT AFFECTS THE BATTLEFIELD WOULD GET THE ATTENTION OF THE SERBS WHO SO FAR HAVE HAD A MARVELOUS TIME PLAYING GAMES WITH THE PEACEMAKERS EVEN MORE DIRECT SUPPORT IF LEADERSHIP WERE SOMEHOW FOUND WOULD BE BOTH MORALLY JUSTIFIED AND MILITARILY POSSIBLE WITH A CREDIBLE BOSNIAN FORCE ON THE GROUND COORDINATING WITH NATO FIGHTERBOMBERS NATO AIR STRIKES AGAINST THE SERBS AND CROATS WOULD BEGIN TO MAKE MILITARY SENSE BELGRADE AND ZAGREB WOULD BE ADVISED TO REDUCE THEIR INVOLVEMENT ON PENALTY OF DIRECT NATO STRIKES AT MILITARY TARGETS IN THE SERB AND CROAT HOMELANDS EUROPE WOULDN'T KNOW WHAT TO DO ABOUT THAT COLOSSUS OF THE SOUTH GREECE WHICH IS FRIENDLY TOWARD SERBIA AND JUST HAPPENS TO HOLD THE EU PRESIDENCY BILL CLINTON IS BUSILY DISARMING AND WOULD BE CONCERNED ABOUT ANNOYING THE RUSSIANS ON MONDAY HE WAS PUTTING HIMSELF FIRMLY IN LINE BEHIND BOUTROS BOUTROSGHALI ABOUT THE LAST THING BOSNIA NEEDS IS THE CLINTON PLOY OF MARCHING OUT WITH FORCE AND THEN BACKING DOWN SO THE MORE LIKELY PROGNOSIS IS FURTHER DRIFT CENTRAL EUROPEAN NATIONS HAVING BEEN SHUT OUT OF NATO AND HAVING WITNESSED THE WEAKNESS OF THE WEST WILL START THINKING ABOUT THEIR OWN NEEDS FOR A MODUS VIVENDI WITH RUSSIA HUNGARY AND BULGARIA ALREADY ARE WARMING TOWARD SERBIA THEY UNDERSTAND ALL TOO WELL THAT THE WEST DID NOT DEFEND THE BOSNIANS BUT THROUGH THE EMBARGO PREVENTED THEM FROM DEFENDING THEMSELVES SO IF EVEN AFTER THE CURRENT OUTRAGE NO ACTION IS TO BE TAKEN THE WEST COULD AT LEAST START TO DRAW SOME LESSONS FROM ITS MISTAKES HISTORY TEACHES THAT VIOLENCE CAN BE CONTAGIOUS AND THE COLLAPSE OF THE COMMUNIST EMPIRE HAS LEFT SCORES OF OTHER BOSNIAS WAITING TO HAPPEN 9402090067 940209 BUSINESS BRIEF 3DO CO FISCAL THIRDQUARTER LOSS IS WIDENED BY NEARLY 78 THE LOSS WAS IN LINE WITH ANALYSTS' EXPECTATIONS FOR 3DO WHICH IS BACKED BY MATSUSHITA ELECTRIC INDUSTRIAL CO AMERICAN TELEPHONE & TELEGRAPH CO AND TIME WARNER INC IN THE NASDAQ STOCK MARKET 3DO CLOSED AT 2425 DOWN 25 CENTS D REX GOLDING 3DO'S CHIEF FINANCIAL OFFICER SAID IN A STATEMENT THAT THE COMPANY HAD ACHIEVED AN IMPORTANT MILESTONE IN SHIPPING ITS INTERACTIVE MULTIPLAYER BY THE CHRISTMAS HOLIDAY SEASON THE MULTIPLAYER IS A COMPUTER WITH COMPACTDISK DRIVES AND HIGHQUALITY GRAPHICS THAT HAS BEEN HEAVILY PROMOTED AS A CONTROLLER FOR HOMEENTERTAINMENT CENTERS 9402090066 940209 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP MOBILEPC NETWORKING LINE WORKSTATIONS ARE UNVEILED DIGITAL EQUIPMENT CORP UNVEILED TWO NEW WORKSTATIONS AS WELL AS EQUIPMENT FOR MAKING MOBILE COMPUTERS WORK AS PART OF A COMPUTER NETWORK DIGITAL MAYNARD MASS SAID IT WILL REPLACE ITS ENTRYLEVEL 300L WORKSTATION WITH THE MODEL 300 LX PRICED AT 5295 THE COLOR WORKSTATION WITH HIGHRESOLUTION GRAPHICS USES A 125MEGAHERTZ ALPHA MICROPROCESSOR THE MAKER OF DATAPROCESSING EQUIPMENT ALSO UNVEILED A MORE POWERFUL WORKSTATION WITH A 175MEGAHERTZ ALPHA MICROPROCESSOR WITH A BASE PRICE OF 7995 DIGITAL SAID ITS ROAMABOUT SOFTWARE AND HARDWARE DESIGNED FOR WIRELESS MOBILE COMPUTING INCLUDES SOFTWARE THAT PROVIDES PERMANENT NETWORK ADDRESSES THAT WILL FOLLOW USERS AS THEY TRAVEL OTHER NEW ROAMABOUT PRODUCTS INCLUDE WIRELESS NETWORK ADAPTORS THAT FIT INTO A CREDITCARDSIZED SLOT ON A PORTABLE COMPUTER EQUIPPING A PORTABLE PC FOR WIRELESS COMPUTING WITH ITS PRODUCTS WOULD COST AROUND 600 DIGITAL SAID 9402090065 940209 BUSINESS BRIEF MORRISON KNUDSEN CORP FOURTHPERIOD NET ROSE 51 AFTER GAIN OF 75 MILLION BOOSTED BY ONETIME GAINS MORRISON KNUDSEN CORP POSTED HIGHER FOURTHQUARTER EARNINGS THE BOISE IDAHO ENGINEERING AND CONSTRUCTION CONCERN REPORTED PROFIT OF 104 MILLION OR 33 CENTS A SHARE UP 51 FROM YEARAGO PROFIT OF 69 MILLION OR 23 CENTS A SHARE THE QUARTER'S RESULTS INCLUDE A GAIN OF 75 MILLION FROM TWO STOCK SALES REVENUE FOR THE QUARTER WAS 7731 MILLION UP FROM 6667 MILLION A YEAR EARLIER FOR THE YEAR MORRISON KNUDSEN HAD PROFIT OF 358 MILLION OR 115 A SHARE COMPARED WITH A LOSS OF 71 MILLION OR 23 CENTS A SHARE AFTER ONETIME CHARGES REVENUE FOR THE YEAR WAS 272 BILLION UP FROM 228 BILLION 9402090064 940209 BUSINESS BRIEF CHRISCRAFT INDUSTRIES INC NET FOR 4TH PERIOD ROSE 36 AIDED BY GAINS AT TV UNIT CHRISCRAFT INDUSTRIES INC SAID FOURTHQUARTER NET INCOME ROSE 36 AIDED BY SHARP GAINS IN OPERATING EARNINGS FROM ITS TELEVISION DIVISION THE NEW YORK VIDEO CONCERN SAID PROFIT ROSE TO 241 MILLION OR 84 CENTS A SHARE FROM 177 MILLION OR 63 CENTS A SHARE FOR THE FOURTH QUARTER TELEVISION DIVISION OPERATING PROFIT ROSE 73 TO 253 MILLION REFLECTING A 4 GAIN IN OPERATING REVENUE AND A 3 REDUCTION IN PROGRAMMING EXPENSES DURING THE QUARTER INCOME FROM TIME WARNER INC SECURITIES INCLUDING SALES FELL TO 29 MILLION FROM 285 MILLION A YEAR EARLIER FOR THE YEAR NET INCOME MORE THAN DOUBLED TO 149 MILLION OR 526 A SHARE FROM 652 MILLION OR 232 A SHARE 9402090063 940209 TECHNOLOGY & ENVIRONMENT TWO BABY BELLS MOVE TO OPEN UP LOCAL MONOPOLIES BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL TWO BABY BELLS YESTERDAY TOOK STEPS TOWARD OPENING UP THEIR LOCAL TELEPHONE MONOPOLIES TO COMPETITION PART OF THEIR SEPARATE EFFORTS TO GAIN ENTRY INTO THE 60 BILLION LONGDISTANCE MARKET FROM WHICH THEY ARE NOW BANNED AMERITECH CORP THE REGIONAL TELEPHONE COMPANY BASED IN CHICAGO SAID IT WILL SUBMIT A BLUEPRINT TO ILLINOIS STATE REGULATORS NEXT WEEK THAT SPELLS OUT HOW THE BABY BELL PLANS TO OPEN UP ITS FACILITIES TO COMPETITORS BUT WILL DO SO ONLY IF IT CAN WIN FEDERAL APPROVAL IN WASHINGTON TO ENTER THE LONGDISTANCE MARKET ON A LIMITED BASIS SAN FRANCISCOBASED PACIFIC TELESIS GROUP MEANWHILE ASKED CALIFORNIA REGULATORS TO STEP UP THEIR PLANS TO OPEN THE LOCAL MARKET FOR TELEPHONE SERVICE TO COMPETITORS ITS PACIFIC BELL UNIT ASKED THE PUBLIC UTILITIES COMMISSION TO REMOVE FORMAL BARRIERS TO COMPETITION EXPANDING AN INITIATIVE BEGUN BY STATE REGULATORS LAST SPRING UNDER STATE LAW COMPETITION FOR DIALTONE SERVICE ISN'T PERMITTED THE PACIFIC BELL FILING APPARENTLY DOESN'T OFFER SPECIFICS ON HOW TO ALLOW NEW COMPETITION INSTEAD ASKING REGULATORS TO EXAMINE THE ISSUE AND COME UP WITH A GAME PLAN AMERITECH'S PROPOSAL BY CONTRAST IS MORE DETAILED AS PREVIOUSLY REPORTED AMERITECH'S PLAN IS CONTINGENT ON WINNING APPROVAL FROM THE US DISTRICT COURT IN WASHINGTON TO OFFER LONGDISTANCE SERVICE FOR CALLS HEADING OUT OF ILLINOIS ONE OF FIVE MIDWEST STATES WHERE AMERITECH NOW HAS A VIRTUAL MONOPOLY ON LOCAL SERVICE IF THAT APPROVAL IS GRANTED AMERITECH WOULD THROW OPEN ITS FACILITIES TO ANY AND ALL COMPETITIORS SAID AMERITECH VICE CHAIRMAN RICHARD BROWN THIS WILL BRING FULL COMPETITION TO 35 MILLION CUSTOMERS IN ILLINOIS MR BROWN SAID AT PACIFIC BELL VICE PRESIDENT BRUCE JAMISON SAID THE COMPANY IS WILLING TO OPEN UP THE MARKET BUT ONLY IF IT CAN COMPETE ON EQUAL FOOTING IF COMPETITORS ARE ALLOWED TO INTERCONNECT WITH PACIFIC BELL'S EQUIPMENT FOR EXAMPLE THEN PACIFIC BELL WANTS PERMISSION TO INTERCONNECT WITH COMPETITORS MR JAMISON SAID THAT IS EXACTLY WHAT SOME PROPONENTS OF COMPETITION AT THE LOCAL LEVEL ARE AFRAID OF CONSUMER ADVOCATES FEAR THAT ROBUST COMPETITION WON'T DEVELOP IF THE BABY BELLS ARE FREE TO COMPETE UNFETTERED BY REGULATIONS INDEED AN ASYET UNRELEASED STUDY BY ECONOMICS & TECHNOLOGY INC A BOSTONBASED TELECOMMUNICATIONS RESEARCH FIRM CONTENDS THAT THE TOTAL REVENUE OF THE CURRENT ROSTER OF POSSIBLE COMPETITORS IS LESS THAN 1 OF THE TOTAL REVENUE OF THE BABY BELLS THE STUDY FUNDED IN PART BY AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP CONCLUDED THAT THE BABY BELLS COULD BE EXPECTED TO RETAIN A VIRTUAL LOCK ON THE LOCAL MARKET FOR THE FORSEEABLE FUTURE THOUGH COMPETITION IN SOME SIGNIFICANT COMPONENTS OF THE MARKET WILL LIKELY DEVELOP OVER THE NEXT DECADE THE REPORT POINTS OUT THAT MARKETS WHERE THE BELLS HAVE BEEN PROHIBITED FROM ENTERING LIKE LONGDISTANCE AND MANUFACTURING HAVE SEEN ROBUST COMPETITION IN RECENT YEARS WHILE MARKETS WHERE THE BELLS HAVE BEEN ALLOWED TO TREAD HAVE NOT 9402090062 940209 BUSINESS BRIEF STARTER CORP SHAREHOLDER LAWSUIT ALLEGES FIRM FAILED TO DISCLOSE FACTS STARTER CORP SAID A SHAREHOLDER FILED A CLASSACTION LAWSUIT AGAINST THE COMPANY AND ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALLEGING THAT THEY FAILED TO DISCLOSE PROMPTLY ADVERSE FACTS ABOUT FOURTHQUARTER RESULTS THE NEW HAVEN CONN DESIGNER AND MARKETER OF OUTERWEAR AND ACTIVEWEAR SAID IT INTENDS TO VIGOROUSLY DEFEND THE LAWSUIT DESCRIBING THE COMPLAINT AS BEING WITHOUT MERIT THE SUIT FILED IN FEDERAL COURT IN CONNECTICUT ALLEGES AMONG OTHER THINGS THAT STARTER FAILED TO REVEAL INFORMATION ABOUT SUPPLY PROBLEMS IT WAS HAVING WITH ITS WINTER OUTERWEAR PRODUCTS THE COMPANY SAID THE SUIT SEEKS AN UNSPECIFIED AMOUNT OF MONETARY DAMAGES 9402090061 940209 BUSINESS BRIEF HOSPITAL STAFFING SERVICES INC GROUP LED BY NUMED HOME SEEKS TO OUST HSS DIRECTORS A GROUP LED BY NUMED HOME HEALTH CARE INC IS SEEKING TO OUST A MAJORITY OF THE DIRECTORS OF HOSPITAL STAFFING SERVICES INC AND ULTIMATELY REMOVE SOME OF THE SENIOR MANAGERS ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING THE NUMED GROUP SAID IN THE FILING THAT IT IS TAKING THIS ACTION BECAUSE THE MANAGEMENT AND CURRENT DIRECTORS OF HSS ARE NOT PREPARED TO REACT IN A PROMPT AND DECISIVE MANNER TO SERIOUS PROBLEMS CONFRONTING HSS NUMED A CLOSELY HELD PROVIDER OF HOME HEALTHCARE SERVICES BASED IN INDEPENDENCE OHIO SAID IT HOLDS ABOUT A 63 STAKE IN HSS A SPOKESMAN FOR HSS A FORT LAUDERDALE FLA PROVIDER OF MEDICAL PERSONNEL FOR HEALTHCARE FACILITIES SAID THE COMPANY WILL ISSUE A STATEMENT THIS MORNING HSS REPORTED A 533 MILLION LOSS FOR THE NINE MONTHS ENDED AUG 31 COMPARED WITH A 196 MILLION PROFIT A YEAR EARLIER NINEMONTH REVENUE FELL TO 628 MILLION FROM 935 MILLION 9402090060 940209 BUSINESS BRIEF RYDER SYSTEM INC EARNINGS RISE 15 ON GAINS IN VEHICLE LEASING SERVICES RYDER SYSTEM INC CITING A STRONG PERFORMANCE IN ITS VEHICLE LEASING AND SERVICES DIVISION REPORTED FOURTHQUARTER NET INCOME ROSE 15 THE MIAMI TRANSPORTATION SERVICES COMPANY SAID NET INCREASED TO 342 MILLION OR 44 CENTS A SHARE FROM 298 MILLION OR 36 CENTS A SHARE A YEAR EARLIER EXCLUDING PROFIT FROM DISCONTINUED OPERATIONS OF 37 MILLION EARNINGS FROM CONTINUING OPERATIONS ROSE 29 TO 305 MILLION OR 39 CENTS A SHARE FROM 237 MILLION OR 28 CENTS A SHARE REVENUE ROSE 63 TO 109 BILLION FROM 103 BILLION RYDER NOTED THAT PRETAX PROFIT FROM CONTINUING OPERATIONS IN ITS VEHICLE LEASING AND SERVICES DIVISION JUMPED 50 ON A 7 GAIN IN REVENUE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY RYDER WAS UNCHANGED AT 2675 9402090059 940209 BUSINESS BRIEF STATE FARM MUTUAL LIFE INSURANCE EARTHQUAKE CLAIMS EXPECTED TO BE AT LEAST 600 MILLION STATE FARM MUTUAL LIFE INSURANCE CO WHICH INSURES MORE LOS ANGELES HOMES THAN ANY OTHER CARRIER SAID IT EXPECTED TO PAY OUT AT LEAST 600 MILLION IN CLAIMS RELATED TO THE EARTHQUAKE THE BLOOMINGTON ILL COMPANY WHICH HAS ALREADY RECEIVED 80000 CLAIMS FROM HOME CAR AND SMALLBUSINESS OWNERS SAID THE NUMBERS COULD RISE IF ADDITIONAL DAMAGE IS UNCOVERED MOST OF ITS LOSSES STEM FROM HOMEOWNERS' INSURANCE STATE FARM A UNIT OF STATE FARM MUTUAL AUTOMOBILE INSURANCE CO HAS ABOUT 24 OF THAT MARKET IN LOS ANGELES BECAUSE THE COMPANY DOESN'T HAVE REINSURANCE WHICH ALLOWS INSURERS TO TRANSFER THE RISK AMONG THEMSELVES THE CLAIMS PAYOUTS WILL REPRESENT A NET FINANCIAL LOSS YET BECAUSE THE PROPERTY AND CASUALTY ARM HAD A 19 BILLION SURPLUS AT YEAREND 1992 THE DISASTER ISN'T EXPECTED TO HURT THE COMPANY 9402090058 940209 BUSINESS BRIEF MATTEL INC A NET LOSS OF 427 MILLION IS REPORTED FOR 4TH QUARTER MATTEL INC POSTED A FOURTHQUARTER NET LOSS OF 427 MILLION OR 26 CENTS A SHARE AFTER TAKING 1051 MILLION IN CHARGES RELATED TO ITS 11 BILLION ACQUISITION OF FISHERPRICE INC BUT HAD RECORD OPERATING EARNINGS FOR THE PERIOD THE CHARGES INCLUDED 904 MILLION IN RESTRUCTURING COSTS AND 147 MILLION FOR MATTEL'S EARLY PREPAYMENT OF 100 MILLION OF HIGHINTEREST DEBT THAT IT ASSUMED IN LAST YEAR'S ACQUISITION OF FISHERPRICE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MATTEL SHARES SURGED 175 OR 75 TO CLOSE AT 25 IN THE YEAREARLIER FOURTH QUARTER CONSOLIDATED NET INCOME OF THE TOY COMPANIES WAS 496 MILLION OR 28 CENTS A SHARE PERSHARE RESULTS REFLECT THE ADDITION OF SHARES ISSUED IN THE FISHERPRICE TRANSACTION AND A SUBSEQUENT 5FOR4 STOCK SPLIT IN JANUARY SALES IN THE QUARTER ROSE 37 TO 7539 MILLION FROM 727 MILLION WHILE PROFIT BEFORE THE EXTRAORDINARY CHARGES INCREASED 26 TO 624 MILLION 9402090057 940209 BUSINESS BRIEF AMERICAN PRESIDENT COS CONTAINER TRANSPORT SERVICE TO BEGIN SERVING VIETNAM AMERICAN PRESIDENT COS SAID ITS AMERICAN PRESIDENT LINES UNIT WOULD BEGIN A REGULAR CONTAINER TRANSPORTION SERVICE TO VIETNAM THE OAKLAND CALIF COMPANY SAID IT HAS OPENED AN OFFICE IN HO CHI MINH CITY AND THAT FULL EXPORT SERVICE FROM VIETNAM WILL BEGIN IMMEDIATELY SOME IMPORT ACTIVITY ALSO WILL BE AVAILABLE NOW WITH THE REMAINDER SUBJECT TO RESTRICTIONS EXPECTED TO BE LIFTED SHORTLY THE COMPANY SAID ITS SERVICE WILL LINK VIETNAM WITH MARKETS IN NORTH AMERICA ASIA AND THE MIDDLE EAST AMERICAN PRESIDENT SAID IT EXPECTS US COMMERCE WITH VIETNAM TO GROW IN THE DOUBLEDIGIT RANGE FOR THE FORESEEABLE FUTURE FOLLOWING THE LIFTING OF THE 19YEAR US TRADE EMBARGO AGAINST VIETNAM ON FEB 3 9402090056 940209 BUSINESS BRIEF MATHSOFT INC CONCERN TO CUT 25 OF STAFF TAKE THIRDQUARTER CHARGE MATHSOFT INC CITING A CHANGING PRODUCT FOCUS SAID IT PLANS TO CUT 25 OF ITS WORK FORCE ABOUT 50 JOBS AND TAKE A 3 MILLION THIRDQUARTER RESTRUCTURING CHARGE MATHSOFT SAID THE RESTRUCTURING MAY TEMPER REVENUE GROWTH UNTIL AN EARNINGS RECOVERY TAKES HOLD THE CAMBRIDGE MASS MAKER OF CALCULATION SOFTWARE AND ELECTRONIC BOOKS SAID IT PLANS TO ELIMINATE PROGRAMS AND PRODUCTS THAT DON'T MEET ITS RETURN OBJECTIVES A SPOKESMAN FOR THE COMPANY WASN'T AVAILABLE IMMEDIATELY TO ELABORATE MATHSOFT SAID IT ALSO WILL ELIMINATE NONPERFORMING MARKETING PROGRAMS AND CONSOLIDATE FACILITIES MATHSOFT WHICH SAID THE CHARGE IS SUBJECT TO CHANGE REPORTED NET INCOME OF 551000 OR EIGHT CENTS A SHARE ON REVENUE OF 77 MILLION FOR THE 1993 THIRD QUARTER THE RESULTS ARE PRO FORMA 9402090055 940209 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S HEALTH PLAN WOULD COST MORE THAN THE WHITE HOUSE PROJECTS AND WOULD INCREASE THE DEFICIT OVER THE FIRST 10 YEARS OF THE PLAN A CONGRESSIONAL BUDGET OFFICE ANALYSIS CONCLUDES IN ANOTHER BLOW TO THE PRESIDENT'S PLAN THE CBO LISTED AS FEDERAL RECEIPTS THE INSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS WOULD BE REQUIRED TO PAY A POINT LIKELY TO AID CRITICS CHARGING THAT THE PROPOSAL AMOUNTS TO A MASSIVE TAX INCREASE HEALTHCARE COSTS FOR MANUFACTURERS WOULD BE LOWER UNDER THE PRESIDENT'S PLAN BUT WOULD INCREASE FOR CONSTRUCTION FIRMS RETAILERS AND OTHER SERVICESECTOR EMPLOYERS TWO BROOKINGS INSTITUTION ECONOMISTS REPORT USAIR SLASHED FARES UP TO 50 ON FLIGHTS COMMONLY USED BY BUSINESS TRAVELERS ON MANY EAST COAST ROUTES A RISKY RESPONSE TO CONTINENTAL'S PLAN TO EXPAND ITS LOWFARE SERVICE THE CARRIER ALSO IS CUTTING LEISURE FARES AS MUCH AS 70 IN THE SAME 96 MARKETS FLEET FINANCIAL PLANS A THREEYEAR 85 BILLION LOAN COMMITMENT TO BORROWERS WITH LOWTOMODERATE INCOMES AND MINORITYOWNED BUSINESSES PEOPLE CLOSE TO THE INITIATIVE SAID BOND PRICES FELL AND DEMAND WAS LACKLUSTER AT A TREASURY AUCTION SIGNS THAT SO FAR THE FED'S MOVE TO LIFT SHORTTERM INTEREST RATES AND SUBDUE INFLATIONARY PRESSURES HAS BEEN BITTER MEDICINE FOR THE US BOND MARKETS STOCK PRICES WERE MIXED AND THE DOW JONES INDUSTRIALS FELL 029 TO 390603 THE BANK OF ENGLAND CUT ITS BASE LENDING RATE 1/4 POINT TO 525 AMID SIGNS THAT ANOTHER CUT MAY FOLLOW SPECTRUM LAUNCHED A COUNTERATTACK AIMED AT DISCREDITING JOHN SCULLEY'S CONTENTION THAT HE LEFT THE COMPANY BECAUSE HE HAD BEEN MISLED ABOUT ITS PROBLEMS SPECTRUM'S STOCK PRICE DROPPED ABOUT 65 IN THE WAKE OF SCULLEY'S RESIGNATION THIS WEEK JAPAN'S HOSOKAWA HAMMERED OUT A 140 BILLION STIMULUS PACKAGE THAT ANALYSTS SAY MAY ADD ONE TO TWO PERCENTAGE POINTS TO THE NATION'S ECONOMIC GROWTH BUT THEY WARN THE TEMPORARY NATURE OF THE PROPOSAL'S TAX CUT MIGHT BLUNT ITS STIMULATIVE EFFECT SEARS POSTED A FOURTHQUARTER PROFIT REBOUNDING FROM A YEARAGO LOSS BUT BELOW WHAT SOME ANALYSTS HAD EXPECTED DUE TO THE RETAILER'S PRICECUTTING AND ADSPENDING EFFORTS SEARS SHARES DROPPED 325 TO 4775 A SEARCH PANEL FOR THE AMERICAN STOCK EXCHANGE PLANS TO RECOMMEND AS CHAIRMAN RICHARD SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT PFIZER IS WORKING TO FORM A CONSORTIUM OF MAJOR DRUG COMPANIES THAT WOULD SELL A POOL OF THEIR PRESCRIPTION MEDICINES TO BIG INSTITUTIONAL BUYERS ALLIEDSIGNAL POSTED A 29 INCREASE IN FOURTHQUARTER PROFIT DECLARED A 2FOR1 STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND 16 CAPPING THE RESULTS OF A COMPANYWIDE RESTRUCTURING BID TWO BLACK FORMER MANAGERS OF TCI SUED THE COMPANY ALLEGING RACIAL DISCRIMINATION AND SEEKING TO BLOCK BELL ATLANTIC'S PLANNED ACQUISITION OF TCI NORTHWEST AIRLINES POSTED ITS SECOND CONSECUTIVE QUARTERLY PROFIT IN THE FOURTH PERIOD BENEFITING FROM COSTCUTTING AND MORE STABLE AIR FARES ITT EMERGED AS THE FAVORED CANDIDATE IN THE BIDDING WAR FOR CIGA WITH A CASH OFFER OF ABOUT 5305 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 551205 OFF 2436 COMMODITIES OIL 1521 A BARREL OFF 4 CENTS DOW JONES FUTURES INDEX 14434 OFF 046 SPOT INDEX 13063 UP 023 DOLLAR 10875 YEN UP 005 17640 MARKS UP 00050 9402090054 940209 BUSINESS BRIEF DOUGLAS & LOMASON CO FOURTHPERIOD LOSS IS POSTED ON CHARGE FOR PLANT CLOSINGS DOUGLAS & LOMASON CO SAID IT TOOK A ONETIME CHARGE OF 96 MILLION OR 228 A SHARE AGAINST FOURTHQUARTER EARNINGS RELATED TO THE CLOSINGS OF FOUR MANUFACTURING FACILITIES AS A RESULT THE FARMINGTON HILLS MICH AUTOPARTS SUPPLIER POSTED A FOURTHQUARTER LOSS OF 79 MILLION OR 186 A SHARE THAT COMPARES WITH A PROFIT OF 3 MILLION OR 72 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES FOR THE QUARTER CLIMBED 19 TO 1126 MILLION FROM A YEAREARLIER 1105 MILLION DOUGLAS & LOMASON SAID ITS FACTORIES IN TROY MO CLEVELAND MISS PHENIX CITY ALA AND HAVRE DE GRACE MD WILL BE CLOSED THIS YEAR LOWERING COSTS BY 5 MILLION ANNUALLY BEGINNING NEXT YEAR FOR THE FULL YEAR DOUGLAS & LOMASON REPORTED A LOSS OF 72 MILLION OR 170 A SHARE AFTER THE CHARGE THAT COMPARES WITH YEAREARLIER PROFIT OF 88 MILLION OR 225 A SHARE 9402090053 940209 BUSINESS BRIEF BURLINGTON COAT FACTORY WAREHOUSE FISCAL 2NDQUARTER NET ROSE BY 28 TOPPING ESTIMATES BOOSTED BY STRONG HOLIDAY SALES BURLINGTON COAT FACTORY WAREHOUSE CORP TOPPED ANALYSTS' EXPECTATIONS AND REPORTED A 28 RISE IN FISCAL SECONDQUARTER PROFIT THE BURLINGTON NJ CLOTHING RETAILER REPORTED PROFIT FOR THE QUARTER ENDED JAN 1 OF 561 MILLION OR 138 A SHARE WELL AHEAD OF ANALYSTS' ESTIMATES OF ABOUT 125 A SHARE THE COMPANY HAD PROFIT OF 437 MILLION OR 107 A SHARE IN THE YEARAGO QUARTER REVENUE ROSE 25 TO 6287 MILLION FROM 6078 MILLION BURLINGTON COAT FACTORY CHIEF FINANCIAL OFFICER ROBERT LAPENTA SAID IN AN INTERVIEW THAT STRONGERTHANEXPECTED HOLIDAY SALES TIGHTER COST CONTROLS AND LOWER COST OF MERCHANDISE CONTRIBUTED TO THE STRONG QUARTER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK ROSE 125 TO 2325 9402090052 940209 MARKETING & MEDIA HOME SHOPPING SETTLES SOME SUITS TO TAKE A CHARGE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL HOME SHOPPING NETWORK INC IN A MOVE TO CLEAR UP SOME LITIGATION STEMMING FROM A SCANDAL LAST YEAR SAID IT REACHED OUTOFCOURT SETTLEMENTS OF SEVERAL LAWSUITS BY SHAREHOLDERS AND WOULD INCUR A RELATED CHARGE OF 13 MILLION TO 16 MILLION THE ST PETERSBURG FLA TELEVISION HOMESHOPPING COMPANY SAID IT WOULD TAKE THE CHARGE IN THE FOURTH QUARTER BUT DIDN'T PROJECT RESULTS FOR THAT PERIOD A SPOKESWOMAN COULDN'T BE REACHED FOR COMMENT MOST OF THE LAWSUITS COVERED BY THE SETTLEMENTS WERE SPARKED BY A GALE OF CHARGES AND FEDERAL INVESTIGATIONS INTO ACCUSATIONS THAT HOME SHOPPING'S FOUNDER ROY M SPEER AND OTHERS ENGAGED IN WRONGDOING INVOLVING THE COMPANY'S PURCHASING OPERATIONS AMONG OTHER THINGS MR SPEER AND COLLEAGUES WERE SAID TO HAVE HELD SECRET STAKES IN THE COMPANY'S VENDORS PAID HUSH MONEY TO SILENCE WOULDBE WHISTLEBLOWERS AND RECEIVED KICKBACKS FROM SUPPLIERS A FEDERAL GRAND JURY IN TAMPA FLA AND THE SECURITIES AND EXCHANGE COMMISSION ARE CONDUCTING INVESTIGATIONS INTO THE ALLEGATIONS YESTERDAY HOME SHOPPING SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE NINE SUITS THAT WERE FILED LAST APRIL IN FEDERAL COURT IN TAMPA THE SUITS ACCUSED HOME SHOPPING OF FAILING TO FULLY DISCLOSE THE PROBLEMS UNDER THE SETTLEMENT WHICH MUST BE APPROVED BY THE COURT HOME SHOPPING WOULD CONTRIBUTE 86 MILLION OF A FUND TOTALING 96 MILLION THE COMPANY DIDN'T SAY WHO WOULD CONTRIBUTE THE REST IN ANOTHER SETTLEMENT THE COMPANY SAID MR SPEER AGREED TO PAY THE COMPANY 2 MILLION AS PART OF THE SAME SETTLEMENT THE COMPANY AGREED TO PAY 45 MILLION TO WESTERN HEMISPHERE SALES INC IN EXCHANGE FOR AMONG OTHER THINGS RELEASING HOME SHOPPING FROM A 1985 LICENSE PACT WITH WESTERN HEMISPHERE'S PREDECESSOR HOME SHOPPING ALSO SETTLED TWO CLASS ACTION SUITS FILED IN FEDERAL AND STATE COURT IN DELAWARE TERMS OF THOSE SETTLEMENTS WEREN'T PROVIDED 9402090051 940209 CORRECTIONS & AMPLIFICATIONS A LEGAL BEAT ARTICLE MONDAY ABOUT LITIGATION OVER NATURAL DISASTERS MISSTATED THE FIRST NAME OF AN IRVINE CALIF PLAINTIFFS' ATTORNEY HE IS DAVID G EPSTEIN DETROIT DIESEL CORP'S FOURTHQUARTER EARNINGS OF 31 CENTS A SHARE EXCEEDED THE AVERAGE OF FOUR ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE DETROIT DIESEL WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE USAA INVESTMENT MANAGEMENT CO'S CORNERSTONE FUND BEAT THE LIPPER ANALYTICAL SERVICES INC INDEX OF GLOBAL FLEXIBLE MUTUAL FUNDS BY NEARLY 14 PERCENTAGE POINTS ON A FIVEYEAR BASIS AN ARTICLE IN THE JAN 26 ISSUE OF TEXAS JOURNAL INCORRECTLY COMPARED THE FUND TO LIPPER'S BALANCED FUND INDEX 9402090050 940209 WHO'S NEWS JENNY CRAIG INC JENNY CRAIG INC DEL MAR CALIF WILLIAM R LEWIS WAS NAMED CHIEF FINANCIAL OFFICER AND TREASURER OF THIS WEIGHTLOSS SERVICE CONCERN SUCCEEDING W JAMES MALLEN 50 YEARS OLD WHO IS RETIRING MR LEWIS 51 PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NUTRI/SYSTEM INC 9402090049 940209 TECHNOLOGY & HEALTH PARENTS OF DECEASED CHILD SUE COPLEY OVER ALBUTEROL WEST PALM BEACH FLA THE PARENTS OF A DECEASED FLORIDA CHILD SUED COPLEY PHARMACEUTICAL INC ALLEGING THEIR 26MONTHOLD BOY DIED AS A RESULT OF TAKING COPLEY'S RECALLED MEDICATION ALBUTEROL THE LAWSUIT WHICH CLAIMS CLASSACTION STATUS WAS THE FIRST IN WHICH PLAINTIFFS LINKED THE DRUG TO A DEATH COPLEY OF CANTON MASS RECALLED ALBUTEROL LAST MONTH AFTER FINDING BACTERIA IN THE DRUG WHICH IS USED AS AN INHALANT A COPLEY REPRESENTATIVE COULDN'T BE REACHED FOR COMMENT THE COMPANY HAS DECLINED COMMENT ON OTHER LAWSUITS ALLEGING A LINK BETWEEN ALBUTEROL AND SERIOUS ILLNESS IN CHILDREN IN ILLINOIS AND ARIZONA THE SUIT WAS FILED IN STATE COURT HERE BY PATRICIA AND RODNEY STEBBINS THERE HAS BEEN NO RULING ON ITS REQUEST FOR CLASSACTION STATUS 9402090048 940209 TECHNOLOGY & HEALTH US ISSUES GUIDELINES THAT MAY LEAD TO LESS SURGERY FOR ENLARGED PROSTATE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US OFFICIALS ISSUED NEW GUIDELINES FOR DOCTORS AND PATIENTS THAT COULD TRANSFORM TREATMENT FOR AN ENLARGED PROSTATE A CONDITION THAT AFFLICTS ABOUT HALF OF MEN OVER AGE 50 IF THE GUIDELINES ARE WIDELY FOLLOWED THEY WOULD LIKELY LEAD TO LESS SURGERY AND FEWER DIAGNOSTIC TESTS THAN ARE NOW PERFORMED IN MANAGING THE AILMENT THEY CALL FOR PATIENTS TO TAKE A PRIMARY ROLE IN DECIDING WHETHER SURGERY MEDICATION OR JUST MONITORING SYMPTOMS WITHOUT TREATMENT IS THE BEST COURSE TO FOLLOW KNOWN AS BENIGN PROSTATIC HYPERPLASIA OR BPH AN ENLARGED PROSTATE RESTRICTS OR OBSTRUCTS THE FLOW OF URINE FROM THE BLADDER THROUGH THE PENIS CAUSING FREQUENT AND URGENT URINATION AND RELATED SYMPTOMS IT ISN'T RELATED TO OR A CAUSE OF PROSTATE CANCER THE MOST COMMON TREATMENT IS SURGERY WHICH WAS PERFORMED ON MORE THAN 220000 MEDICARE PATIENTS IN 1992 AT A COST OF MORE THAN 1 BILLION BOTH THE COST AND THE FACT THAT DOCTORS VARY WIDELY IN PRESCRIBING TREATMENTS PROMPTED US HEALTH OFFICIALS TO CONSIDER BPH AS A MAJOR CANDIDATE FOR AN INITIATIVE TO DEVELOP GUIDELINES FOR A VARIETY OF COMMON DISEASES AT THE SAME TIME NEW TREATMENT ALTERNATIVES INCLUDING DRUGS MARKETED BY MERCK & CO AND ABBOTT LABORATORIES HAVE RECENTLY BEEN APPROVED BY US REGULATORS ADDING TO OPTIONS FOR BOTH DOCTORS AND PATIENTS THERE'S BEEN A TENDENCY TO INTERVENE WITH SURGERY TOO QUICKLY RATHER THAN CONSIDER OPTIONS SAID JARRETT CLINTON ADMINISTRATOR OF THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH A DIVISION OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH ANNOUNCED THE GUIDELINES OUR ANALYSIS CLEARLY DEMONSTRATES THAT SURGERY IS THE MOST EFFECTIVE TREATMENT FOR BPH ADDED JOHN D MCCONNELL CHAIRMAN OF UROLOGY AT UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER DALLAS AND CHAIRMAN OF A 13MEMBER EXPERT PANEL THAT DEVELOPED THE GUIDELINES BUT NOT ALL PATIENTS NEED OR DESIRE THE MOST EFFECTIVE THERAPY THE GUIDELINES URGE DOCTORS TO CURTAIL USE OF TWO WIDELY USED DIAGNOSTIC TESTS AND RELY INSTEAD ON A NEW SEVENITEM QUESTIONNAIRE YIELDING A SYMPTOM SCORE ON A 35POINT SCALE THAT INDICATES HOW SEVERELY BPH IS AFFECTING A PATIENT'S QUALITY OF LIFE SINCE SOME MEN LIVE COMFORTABLY WITH SYMPTOMS THAT OTHERS CONSIDER SEVERE THE GUIDELINES SAY A FOCUS ON A PATIENT'S VIEW OF SYMPTOMS RATHER THAN CLINICAL TESTS WILL LEAD TO MORE APPROPRIATE TREATMENT THE SYMPTOM SCORE IS A VERY PIVOTAL PART OF THE WORKUP AND IS ONE OF THE THINGS THAT BRINGS THE PATIENT INTO THE PROCESS SAID DR MCCONNELL THIS IS GOING TO BE A NEW CONCEPT FOR MANY PHYSICIANS THE QUESTIONNAIRE WAS DEVELOPED BY THE AMERICAN UROLOGICAL ASSOCIATION BASED ON RESEARCH INTO TREATMENT OUTCOMES FOR BPH HEADED BY JOHN E WENNBERG AN EPIDEMIOLOGIST AT DARTMOUTH MEDICAL SCHOOL THE NEW GUIDELINES SAY PATIENTS WITH SEVERE SYMPTOMS INCLUDING AN INABILITY TO URINATE SHOULD BE TREATED WITH SURGERY BUT ALL OTHERS SHOULD FILL OUT THE QUESTIONNAIRE AND USE THE RESULTS AS A BASIS FOR DISCUSSING TREATMENT STRATEGIES WITH THEIR PHYSICIANS THE BEST TREATMENT IS THE ONE CHOSEN BY AN INFORMED PATIENT DR MCCONNELL SAID A PILL IS LESS EFFECTIVE THAN SURGERY BUT HAS LESS RISK WE'RE TRYING TO GET DOCTORS AWAY FROM MAKING THAT VALUE JUDGMENT THEMSELVES IT'S A PATIENT'S DECISION THE GUIDELINES ALSO SAY THAT XRAY OR ULTRASOUND EXAMINATION OF THE KIDNEYS AND CYSTOSCOPY IN WHICH DOCTORS LOOK AT THE URINARY TRACT THROUGH A SCOPE ARE OF LITTLE USE IN DECIDING WHETHER A PATIENT NEEDS TREATMENT A 1989 SURVEY FOUND THAT TWOTHIRDS OF UROLOGISTS ROUTINELY USE THOSE TESTS IN EXAMINING A PATIENT WITH BPH SYMPTOMS OTHER TESTS TO MEASURE THE FLOW AND VELOCITY OF URINE AND THE PRESSURE IN THE BLADDER MAY BE HELPFUL TO SUPPLEMENT DATA OBTAINED FROM THE QUESTIONNAIRE THE GUIDELINES SAY 9402090047 940209 BUSINESS BRIEF VF CORP QUARTERLY EARNINGS FELL 13 ON WEAKNESS IN JEANS LINE VF CORP WYOMISSING PA SAID FOURTHQUARTER EARNINGS FELL 13 PARTLY REFLECTING POOR PERFORMANCE IN ITS HIGHPRICED JEANS LINE VF ESTIMATED FIRSTQUARTER EARNINGS WOULD BE FLAT OR DOWN SLIGHTLY THE APPAREL COMPANY REPORTED QUARTERLY EARNINGS OF 611 MILLION OR 94 CENTS A SHARE DOWN FROM 706 MILLION OR 118 A SHARE A YEAR EARLIER SALES ROSE 67 TO 11 BILLION FROM 103 BILLION THE EARNINGS REFLECTED A 16 CENTASHARE PROVISION FOR WRITEDOWNS AND RESERVES AT GIRBAUD ITS LINE OF PRICEY JEANS LAST YEAR'S FOURTH QUARTER INCLUDED A 17 CENTASHARE NONRECURRING GAIN VF SHARES DECLINED 1 TO 45625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LAWRENCE PUGH CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE RESULTS TO CONTINUING PROBLEMS WITH REDUCED FLEECEWEAR VOLUME MANUFACTURING INEFFICIENCIES AT VANITY FAIR AND POOR RESULTS AT GIRBAUD 9402090046 940209 WHO'S NEWS BURKE'S RETIREMENT FROM CAPITAL CITIES DISMANTLES PARTNERSHIP WITH MURPHY BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TODAY ONE OF THE LONGESTRUNNING AND MOSTRESPECTED MANAGEMENT TEAMS IN BROADCASTING HISTORY BREAKS UP WITH THE RETIREMENT OF DANIEL B BURKE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAPITAL CITIES/ABC INC MR BURKE THE HANDSON PARTNER TO CHAIRMAN THOMAS S MURPHY LEAVES BIG SHOES TO FILL SO BIG THAT THEY'RE APPARENTLY GOING TO REMAIN EMPTY FOR SOME TIME AS CAPITAL CITIES EXECUTIVES GATHER THIS WEEK IN PHOENIX FOR THE COMPANY'S ANNUAL MANAGEMENT MEETING ALL EYES ARE ON THE MOST LIKELY EVENTUAL SUCCESSOR ROBERT A IGER PRESIDENT OF THE ABC TELEVISION NETWORK GROUP AND AN EXECUTIVE VICE PRESIDENT OF THE CORPORATION BUT MR IGER WHO TURNS 43 TOMORROW HAS BEEN IN HIS CURRENT JOB FOR JUST ONE YEAR AND THE COMPANY'S BOARD ISN'T YET READY TO TURN OVER THE REINS DURING NEARLY FOUR DECADES MR BURKE AND MR MURPHY BUILT CAPITAL CITIES WHICH LATER MERGED WITH THE MUCH LARGER ABC INTO AN ENTERTAINMENT POWERHOUSE LED BY THE ABC TELEVISION NETWORK IF YOU'RE GOING TO BE IN A NETWORK THAT'S THE NETWORK TO BE IN SAYS TOM WOLZIEN A MEDIA ANALYST AT SANFORD C BERNSTEIN & CO CONCERN OVER MANAGEMENT WALL STREET SEEMS TO AGREE PUSHING THE STOCK RECENTLY TO ITS RECORD HIGH OF 67650 A SHARE CAPITAL CITIES/ABC SHARES ROSE 1375 TO CLOSE AT 673625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE ONLY CONCERN HAS BEEN THE GAP BETWEEN THE MURPHYBURKE TEAM AND THE NEXT GENERATION OF MANAGEMENT WALL STREET BEGAN TO GET NERVOUS ABOUT THE FUTURE LEADERSHIP OF THE COMPANY A YEAR AGO WHEN IT BECAME APPARENT THAT MR BURKE INTENDED TO RETIRE ON HIS 65TH BIRTHDAY WHICH WAS FEB 4 MR MURPHY HAD RELINQUISHED THE CHIEF EXECUTIVE TITLE TO MR BURKE IN 1990 WHEN MR MURPHY TURNED 65 OF THE CONTENDERS MR IGER WHO HAS BEEN AT THE COMPANY SINCE 1974 WAS THOUGHT THE MOST LIKELY HE WAS PROMOTED TO NETWORK CHIEF IN JANUARY 1993 AFTER A STINT AS PRESIDENT OF ABC ENTERTAINMENT AND WAS NAMED EXECUTIVE VICE PRESIDENT IN JULY IN THE ABSENCE OF A READY INTERNAL CANDIDATE SEVERAL EXECUTIVES FROM OUTSIDE THE COMPANY WERE SOUNDED OUT ABOUT THE CHIEF EXECUTIVE'S JOB PEOPLE FAMILIAR WITH THE SITUATION SAY ONE OF THEM WAS ROBERT A DALY CHAIRMAN OF TIME WARNER INC'S WARNER BROS STUDIO WHO PASSED MR DALY DECLINED TO COMMENT THE COMPANY WAS ALSO EXPLORING STRATEGIC MERGERS OR ACQUISITIONS WITH THE POSSIBILITY THAT THE TOP JOB WOULD BE FILLED BY SOMEONE FROM THE MERGING COMPANY AT ONE POINT PEOPLE CLOSE TO THE COMPANY SAY CAPITAL CITIES TALKED WITH VIACOM INC VIEWING ITS CHIEF EXECUTIVE FRANK BIONDI AS A POTENTIAL SUCCESSOR VIACOM IN THE MIDST OF THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC DECLINED TO COMMENT LAST NOVEMBER WITH NO DEAL IN SIGHT CAPITAL CITIES ANNOUNCED THAT MR MURPHY WOULD REMAIN AS CHAIRMAN AND RESUME THE CHIEF EXECUTIVE TITLE WHEN MR BURKE RETIRED THAT DECISION HAD THE ADDED ADVANTAGE OF KEEPING IN PLACE AN AGREEMENT WITH THE COMPANY'S LARGEST SHAREHOLDER WARREN BUFFETT WHOSE 13 STAKE IS CONTROLLED BY MESSRS MURPHY AND BURKE AS LONG AS ONE OF THEM IS CHIEF EXECUTIVE THOUGH MR MURPHY HAS NEVER PUBLICLY CROWNED MR IGER AS THE HEIR APPARENT MR MURPHY SAID IN A RECENT INTERNAL TELECAST TO EMPLOYEES WE FEEL THAT WE HAVE VERY ABLE PEOPLE IN PLACE RIGHT NOW THAT'LL BE ABLE TO TAKE OVER BOTH DAN'S JOB AND MY JOB THE WAY IT IS RIGHT NOW THE UNUSUAL SITUATION CAN WORK SEVERAL ANALYSTS NOTE I DON'T THINK IT'S A NEARTERM PROBLEM AS LONG AS YOU DON'T LOSE BOTH MESSRS MURPHY AND BURKE AT THE SAME TIME SAYS OPPENHEIMER & CO INC ANALYST JESSICA REIF STILL MANY SAY THE FASTMOVING MEDIA ENVIRONMENT MAY OVERTAKE THE LONGTERM PLAN IF CAP CITIES ENDS UP NEGOTIATING A STRATEGIC DEAL WITH A COMPANY SUCH AS TURNER BROADCASTING SYSTEM INC WHOSE CHAIRMAN TED TURNER SAYS HE'S ON THE PROWL FOR A NETWORK WITH THE RUMORS OF MERGER TALKS THIS IS A WAY OF KEEPING THE NO 2 SLOT OPEN SAYS MR WOLZIEN IN THE MEANTIME ALL EYES WILL BE ON MR IGER IT'S THERE FOR THE HEIRS APPARENT TO TAKE IF THEY STEP UP TO THE PLATE WITH PROGRAMMING HITS AND IMPROVED EARNINGS SAYS JOHN TINKER AN ANALYST WITH FURMAN SELZ INC 9402090045 940209 MARKETING & MEDIA HOME DEPOT TO ACQUIRE 75 OF CANADIAN CHAIN ATLANTA HOME DEPOT INC IN A MOVE THAT ACCELERATES ITS PLANNED EXPANSION NORTH OF THE BORDER AGREED TO ACQUIRE 75 OF A CANADIAN HOMEIMPROVEMENT CHAIN FROM MOLSON COS FOR APPROXIMATELY 150 MILLION THROUGH ITS PARTNERSHIP WITH MOLSON AND ITS AIKENHEAD'S HOME IMPROVEMENT WAREHOUSE HOME DEPOT WILL BE OPERATING FIVE STORES IN CANADA IMMEDIATELY AND AS MANY AS 10 TO 14 STORES THERE BY YEAR END HOME DEPOT OPERATES 269 HOMEIMPROVEMENT STORES IN THE US IN ALL HOME DEPOT EXPECTS TO HAVE AT LEAST 50 STORES IN CANADA WITHIN FIVE YEARS SAID ARTHUR BLANK HOME DEPOT'S PRESIDENT AND CHIEF OPERATING OFFICER AIKENHEAD'S WHICH OPENED ITS FIRST STORE ALMOST TWO YEARS AGO NOW HAS FIVE OUTLETS IN THE TORONTO AREA HOME DEPOT EXPECTS ITS PARTNERSHIP WITH MOLSON TO DILUTE PERSHARE EARNINGS FOR THE YEAR ENDING NEXT JANUARY BY ONE OR TWO CENTS SAID BERNARD MARCUS HOME DEPOT'S CHAIRMAN AND CHIEF EXECUTIVE BUT HE ADDED THAT HE EXPECTS THE UNION TO BE VERY PROFITABLE THE FOLLOWING YEAR HOME DEPOT WILL OWN 75 AND MOLSON 25 OF THE COMBINED BUSINESS TO BE CALLED HOME DEPOT CANADA 9402090044 940209 GUILTY PLEA IS ENTERED TO FEDERAL CHARGES OF SECURITIES FRAUD LOS ANGELES WILLIAM L TELANDER 44 YEARS OLD PLEADED GUILTY TO FEDERAL CHARGES THAT HE FRAUDULENTLY SOLD SECURITIES IN A FOREIGNCURRENCY TRADING SCHEME THAT BILKED 380 INVESTORS OUT OF 11 MILLION US ATTORNEY THOMAS M BROWN SAID MR TELANDER YOUNTVILLE CALIF PLEADED GUILTY IN FEDERAL DISTRICT COURT IN LOS ANGELES TO FOUR COUNTS OF FRAUDULENT SECURITIES SALES AND TWO COUNTS OF FAILING TO FILE FEDERAL INCOMETAX RETURNS MR TELANDER IS ALSO NEGOTIATING A RESOLUTION OF SECURITIES AND EXCHANGE COMMISSION CHARGES THAT HE VIOLATED VARIOUS SECURITIES LAWS IN THE SCHEME MR BROWN SAID THE GOVERNMENT ALLEGED THAT MR TELANDER FRAUDULENTLY OFFERED AND SOLD UNREGISTERED SECURITIES IN SOUTHWEST INTERNATIONAL EXCHANGE THE SECURITIES PURPORTED TO BE LIMITED PARTNERSHIP INTERESTS IN A FOREIGNCURRENCY EXCHANGE PROGRAM INVESTORS WERE TOLD THEY WOULD EARN BETWEEN 25 AND 41 ON THEIR INVESTMENTS HOWEVER SOUTHWEST INTERNATIONAL NEVER ENGAGED IN FOREIGNCURRENCY EXCHANGE TRANSACTIONS AND MR TELANDER USED INVESTORS' FUNDS TO FINANCE VARIOUS PERSONAL INVESTMENTS TO MAKE NOMINAL PAYMENTS TO SOUTHWEST INTERNATIONAL INVESTORS AND TO COVER PERSONAL EXPENSES THE GOVERNMENT SAID MR TELANDER AND HIS ATTORNEY COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9402090043 940209 WHAT'S NEWS WORLDWIDE NATO WILL WEIGH A USFRENCH PROPOSAL FOR ENDING THE SIEGE OF SARAJEVO THE US AND FRANCE WILL ASK THE WESTERN ALLIANCE TO SET AN EARLY DEADLINE FOR WITHDRAWING ALL HEAVY WEAPONS FROM AROUND BOSNIA'S CAPITAL AND TO BACK IT UP WITH THE THREAT OF AIR STRIKES THE PROPOSAL TO BE UNVEILED TODAY IN BRUSSELS WOULD GIVE BOTH THE BOSNIAN SERBS AND THE MUSLIMLED GOVERNMENT ABOUT A WEEK TO WITHDRAW THEIR ARTILLERY MORTARS AND TANKS OR FACE ALLIED BOMBING THE CLINTON ADMINISTRATION ALSO WILL OFFER TO SEND A US ENVOY TO SARAJEVO TO HELP THE MUSLIM GOVERNMENT FORMULATE A PEACE PLAN THAT COULD BE SUPPORTED BY THE US BOSNIAN SERB LEADER KARADZIC DECLARED THAT ANY PLANE ATTACKING SERB FORCES WOULD BE SHOT DOWN A BELGRADE NEWS AGENCY REPORTED A MILITARY JUDGE ACCUSED THE NAVY'S TOP OFFICER OF UNLAWFULLY TRYING TO MANIPULATE THE TAILHOOK PROBE REVIVING THE QUESTION OF WHETHER ADM KELSO WOULD BE OUSTED THE JUDGE WHO DISMISSED CHARGES AGAINST THREE NAVY FLIERS IN THE SEXABUSE SCANDAL ALSO REJECTED SOME OF KELSO'S TESTIMONY ABOUT WHAT HE SAW AT THE 1991 CONVENTION THE STATE DEPARTMENT URGED EXILED HAITIAN PRESIDENT ARISTIDE TO LAY THE GROUNDWORK FOR A NEW GOVERNMENT BY NAMING A PRIME MINISTER HAITI HAS BEEN WITHOUT A PRIME MINISTER SINCE THE PREVIOUS ARISTIDE APPOINTEE MALVAL QUIT IN DECEMBER IRISH PRIME MINISTER REYNOLDS SENT A CONFIDENTIAL LETTER TO THE IRA'S POLITICAL WING SINN FEIN URGING ACCEPTANCE OF AN ANGLOIRISH PEACE PLAN FOR NORTHERN IRELAND SINN FEIN WHICH HAS REFUSED TO BACK THE PLAN PENDING CLARIFICATION FROM BRITAIN ISN'T EXPECTED TO MAKE A FINAL DECISION UNTIL AFTER THE PARTY'S ANNUAL MEETING LATE THIS MONTH US HEALTH OFFICIALS ISSUED NEW GUIDELINES FOR DOCTORS AND PATIENTS THAT COULD TRANSFORM TREATMENT FOR AN ENLARGED PROSTATE A CONDITION THAT AFFLICTS ABOUT HALF OF MEN OVER AGE 50 IF THE GUIDELINES ARE WIDELY FOLLOWED THEY WOULD LIKELY LEAD TO LESS SURGERY AND FEWER DIAGNOSTIC TESTS THAN ARE NOW PERFORMED A PANEL OF SCIENTISTS TOLD LAWMAKERS THAT WITH FEW EXCEPTIONS RADIATION EXPERIMENTS CONDUCTED ON HUMANS IN THE 1940S AND '50S APPEAR TO HAVE INVOLVED DOSES THAT WOULD LEAVE NO LONGTERM HEALTH PROBLEMS THE SENATE APPROVED CLINTON'S EDUCATION REFORM PACKAGE CALLED GOALS 2000 AS WELL AS THE ADMINISTRATION'S SCHOOLTOWORK LEGISLATION GOALS 2000 PASSED 7125 CREATES A NATIONAL FRAMEWORK FOR SETTING HIGH STANDARDS IN SCHOOLS ARAFAT AND PERES MET IN CAIRO BUT ISRAELI AND PALESTINIAN NEGOTIATORS SAID MORE TALKS WERE NEEDED BEFORE ISRAEL BEGINS WITHDRAWING FROM GAZA AND JERICHO AFTER THE TALKS BETWEEN THE PLO LEADER AND ISRAELI FOREIGN MINISTER ISRAEL'S RABIN SAID HE EXPECTED PROLONGED NEGOTIATIONS BEFORE THE PEACE ACCORD CAN BE IMPLEMENTED A RIGHTWING SOUTH AFRICAN GROUP SAID TALKS WITH THE GOVERNMENT AND THE AFRICAN NATIONAL CONGRESS REACHED A DEAD END AS A RESULT THE FREEDOM ALLIANCE ANNOUNCED IT PROBABLY WOULD BOYCOTT AN APRIL VOTE THE GROUP INCLUDES THE INKATHA PARTY THE WHITE SEPARATIST AFRIKANER PEOPLE'S FRONT AND THE BOPHUTHATSWANA BLACK HOMELAND ITALY'S DEFENSE MINISTER WARNED THAT THE UN MISSION IN SOMALIA RISKS COLLAPSE WHEN WESTERN TROOPS LEAVE AT THE END OF MARCH AND HE CALLED FOR URGENT EFFORTS TO INITIATE TALKS INVOLVING RIVAL CLANS CLINTON'S ANTIDRUG STRATEGY WILL TARGET CHRONIC HARDCORE DRUG USE WHILE BOOSTING SPENDING ON TREATMENT AND PREVENTION ACCORDING TO A LATE DRAFT OF THE PLAN IN A STATEMENT ACCOMPANYING THE DRAFT THE PRESIDENT SAYS THE EMPHASIS ON PREVENTION DOESN'T SIGNAL A LESS AGGRESSIVE ROLE FOR LAWENFORCEMENT AUTHORITIES THE LAST OF THE CONTRA REBELS ACCEPTED A DISARMAMENT PLAN THAT WOULD END DECADES OF WARFARE IN NICARAGUA A CATHOLIC BISHOP ANNOUNCED THE PROPOSAL CALLS FOR THE ARMY TO WITHDRAW FROM THE NORTHERN MOUNTAINS AND FOR THE INSURGENTS TO DISARM SUDANESE GOVERNMENT FORCES BOMBED REBELHELD VILLAGES AND REFUGEE CAMPS IN SOUTHERN SUDAN WITNESSES SAID MARKING THE FOURTH RAID IN LESS THAN A WEEK AN ESTIMATED 67000 REFUGEES ARE BELIEVED TO BE FLEEING TOWARD UGANDA AHEAD OF A FEARED GROUND OFFENSIVE BY GOVERNMENT TROOPS 9402090042 940208 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 DETROIT DIESEL CORP'S FOURTHQUARTER EARNINGS OF 31 CENTS A SHARE EXCEEDED THE AVERAGE OF FOUR ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE DETROIT DIESEL WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE 9402090041 940209 INTERNATIONAL CHINA'S TARIM BASIN LURES SECOND OILSEEKING GROUP GENEVA CHINA HAS ATTRACTED A SECOND CONSORTIUM TO EXPLORE FOR OIL IN ITS REMOTE NORTHWESTERN TARIM BASIN ITALY'S STATEOWNED OIL COMPANY AGIP SPA SAID IT AND FOUR OTHER FOREIGN COMPANIES SIGNED A CONTRACT WITH CHINA NATIONAL PETROLEUM CORP TO EXPLORE FOR AND PRODUCE OIL IN A 9814 SQUARE KILOMETER 39256 SQUARE MILES BLOCK IN THE BASIN AN INHOSPITABLE DESERT AREA NEAR CHINA'S BORDER WITH KAZAKHSTAN IN ADDITION TO AGIP THE CONSORTIUM INCLUDES FRANCE'S SOCIETE NATIONALE ELF AQUITAINE JAPAN PETROLEUM EXPLORATION CO JAPAN ENERGY CO AND TEXACO INC THE FIVE COMPANIES HAVE EQUAL 20 INTERESTS IN THE VENTURE THE CONTRACT SPECIFIES THREE EXPLORATION PERIODS TOTALING EIGHT YEARS PLUS A PRODUCTION PERIOD OF 15 YEARS THE CONTRACT CAN BE RELINQUISHED AT THE END OF EACH OF THE EXPLORATION PERIODS CHINA OPENED PARTS OF TARIM TO FOREIGN COMPANIES LAST YEAR CLAIMING THE 350000 SQUAREKILOMETER 140000 SQUARE MILES BASIN POTENTIALLY HELD MORE THAN 70 BILLION BARRELS OF OIL AN AMOUNT THAT IF PROVEN WOULD TRIPLE THE COUNTRY'S RESERVES AND MAKE IT VIE WITH IRAN 9402090040 940209 YIELDS ON CDS ENDED WEEK SLIGHTLY HIGHER NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS ROSE IN THE LATEST WEEK ALTHOUGH MOST CHANGES WERE MODERATE THE AVERAGE YIELD ON SIXMONTH SMALL DENOMINATION OR SAVINGS CDS AT MAJOR BANKS ROSE TO 277 FROM 271 IN THE WEEK ENDED YESTERDAY ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTOM DEL INFORMATIONSERVICE CONCERN SAID THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCREASED TO 449 FROM 442 THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE FIRMS ROSE TO 317 FROM 302 BANXQUOTE REPORTED ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 464 FROM 448 THE SURVEY SAID 9402090039 940209 MEDIA VIACOM AND QVC DEBATE WHO WOULD BE BETTER PARENT BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL IN THE MULTIMEDIA WORLD OF THE FUTURE WHICH ENTERTAINMENT COMBINE WOULD BE IN A BETTER POSITION TO PROFIT FROM THE ACQUISITION OF PARAMOUNT COMMUNICATIONS INC AS WALL STREET TRADERS TRY TO CHASE THE HIGHEST OFFER RIVAL BIDDERS QVC NETWORK INC AND VIACOM INC ARE TRYING TO WIN OVER LONGTERM INVESTORS WITH THEIR RESPECTIVE VISION THING AND IN THE PROCESS THEY ARE TRYING TO PUNCH HOLES IN EACH OTHER'S STRATEGY BUSINESS PROSPECTS AND MANAGEMENT EXPERTISE FEW ANALYSTS AND MONEY MANAGERS WILL VENTURE TO SAY WHICH COMPANY WOULD BE THE BETTER WINNER FOR THE LONGER TERM BOTH QVC AND VIACOM THEY SAY COULD EXPLOIT PARAMOUNT'S ASSETS A FILM AND TV LIBRARY A LEADING BOOK PUBLISHING AND INFORMATION SERVICES COMPANY THEME PARKS TV STATIONS AND SPORTS TEAMS WALL STREET AND HOLLYWOOD ARE IMPRESSED BY QVC CHAIRMAN BARRY DILLER'S TRACK RECORD BUT EQUALLY IMPRESSED BY THE POTENTIAL COMBINATION OF ASSETS IF VIACOM WINS FOR THE NEAR TERM VIACOM GIVES INVESTORS A VERY SOLID MEAT AND POTATOES APPROACH TO IMPROVING PARAMOUNT SAYS ED HATCH AN ANALYST AT UBS SECURITIES FOR THE LONGER TERM FOUR FIVE OR SIX YEARS DOWN THE ROAD QVC'S PROPOSALS SUCH AS PLANS TO OFFER NEW SPECIALIZED CHANNELS TANTALIZE INVESTORS' IMAGINATIONS WITH NEW REVENUE STREAMS ADDS JOHN TINKER AN ANALYST AT FURMAN SELZ INC BOTH SIDES BRING INCREDIBLY STRONG ARGUMENTS TO THE TABLE WHICH IS ONE REASON THIS HAS BEEN SUCH A LONG DRAWNOUT BATTLE MR DILLER CONTINUED YESTERDAY TO PROMOTE HIS RECORD AS AN ENTERTAINMENT IMPRESARIO WHO HAS RUN TWO STUDIOS AND STARTED A BROADCAST NETWORK BUTTRESSED BY FORMIDABLE PARTNERS WITH INTERESTS IN TELECOMMUNICATIONS PUBLISHING AND CABLE TV QVC WARNS THAT VIACOM'S BUSINESSES NOTABLY MTV NETWORKS AND THE SHOWTIME PAY TV CHANNEL FACE HUGE COMPETITIVE THREATS IN THE FUTURE FOR ITS PART VIACOM WHICH HAS AGREED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORP IS HAWKING THE RELATIVE MERITS OF ITS CABLE TV POWERHOUSE COMBINED WITH THE LEADING VIDEO AND MUSIC RETAILER AND STRONG FINANCIAL AND STRATEGIC MANAGEMENT FROM SUMNER REDSTONE AND THE COMPANY'S CHIEF EXECUTIVE FRANK BIONDI VIACOM ARGUES THAT QVC FACES FAR MORE COMPETITIVE THREATS IN ITS BASIC HOME SHOPPING BUSINESS AND SAYS MR DILLER'S TALENTS AS A MANAGER ARE BEING GIVEN TOO MUCH WEIGHT ANALYSTS AND OBSERVERS AGREE THAT FOR ALL THEIR OPPORTUNITIES QVC AND VIACOM FACE DAUNTING RISKS EITHER ONE WOULD BE HEAVILY BURDENED WITH DEBT LAST WEEK PARAMOUNT SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 35 MILLION TO 40 MILLION FOR THE FISCAL THIRD QUARTER ENDED JAN 31 THOUGH VIACOM OFFICIALS ARE READY TO DECLARE VICTORY IN THE BATTLE THEY CONTINUED YESTERDAY TO TRY TO PERSUADE LONGERTERM INVESTORS THAT VIACOM'S BUSINESSES BETTER COMPLEMENT PARAMOUNT'S VIACOM ARGUES THAT THE ADDITION OF BLOCKBUSTER'S VIDEO AND MUSIC RETAILING OPERATIONS BRINGS EVEN MORE POTENTIAL FOR SYNERGY AND NOTES THAT BLOCKBUSTER HAS ITS OWN LIBRARY OF TV PROGRAMS QVC COUNTERS THAT BLOCKBUSTER'S VIDEO RETAILING BUSINESS IS DOOMED TO GO THE WAY OF THE BUGGY WHIP WHEN THE INFORMATION HIGHWAY PROVIDES 500 CHANNELS AND INSTANT MOVIESONDEMAND VIACOM MAINTAINS THAT BLOCKBUSTER'S HUGE CASH FLOW WILL HELP PAY FOR OTHER GROWTH BUSINESSES AND THAT IN ANY EVENT VIDEO AND MUSIC RETAILING STILL HAVE OPPORTUNITIES IN THE US AND GROWTH POTENTIAL OVERSEAS VIACOM IS ALSO STRESSING TO INVESTORS THAT A COMBINED VIACOMBLOCKBUSTERPARAMOUNT WILL HAVE TOTAL ASSETS OF MORE THAN 24 BILLION IN MORE THAN 25 LINES OF BUSINESS AND WILL BE THE LARGEST BUYER IN HOLLYWOOD GIVING IT MUSCLE TO MAKE GOOD DEALS WITH SUPPLIERS IT SEES HUGE CROSSPROMOTIONAL OPPORTUNITIES BETWEEN BLOCKBUSTER'S MUSIC RETAILING AND MTV AND VIDEO RETAILING AND PARAMOUNT'S THEATER OPERATIONS THOUGH MANY ON WALL STREET HAIL THE BLOCKBUSTER MERGER AS A STRATEGIC COUP FOR VIACOM OTHERS ARE LESS IMPRESSED MARIO GABELLI A FUND MANAGER WHO CONTROLS MORE THAN FOUR MILLION PARAMOUNT SHARES VIEWS BLOCKBUSTER AS A BIG ALBATROSS THAT MAKES IT ALL TOO CUMBERSOME HE ADDS I'D LIKE TO SEE THAT EGG UNSCRAMBLED IN ATTACKING EACH OTHER BOTH VIACOM AND QVC SAY THE OTHER FACES HUGE COMPETITIVE THREATS RECENTLY FOR EXAMPLE THE WORLD'S LARGEST RECORD COMPANIES LED BY TIME WARNER INC AND SONY CORP ANNOUNCED THE FORMATION OF A GLOBAL VENTURE THAT WILL COMPETE WITH MTV'S MUSIC VIDEO NETWORK THOUGH TIME AND SONY SAY THEY WON'T KEEP MUSIC VIDEOS PRODUCED BY THEIR RECORD UNITS AWAY FROM MTV QVC ARGUES THAT THE COMPETITION COULD SERIOUSLY HAMPER MTV'S PROSPECTS VIACOM SAYS IT ISN'T WORRIED ABOUT COMPETITION IN A MEMO TO PARAMOUNT'S INVESTMENT BANKERS QVC ALSO ARGUES THAT VIACOM'S SHOWTIME NETWORK WHICH IS A DISTANT SECOND TO TIME WARNER'S HOME BOX OFFICE IS A DECLINING ASSET UNDER PRESSURE QVC WARNS THAT SHOWTIME COULD BE CRUSHED BY COMPETITION FROM A NEW PAYTV SERVICE ENCORE WHICH IS CONTROLLED BY CABLE GIANT TELECOMMUNICATIONS INC AND QVC ARGUES THAT VIACOM'S HUGE ANTITRUST SUIT AGAINST TCI AND OTHERS LEAVES THE COMPANY IN A VULNERABLE POSITION WITH REGARD TO THE DISTRIBUTION OF NEW PROGRAMMING VIACOM SAYS THAT IN QVC'S BASIC HOME SHOPPING BUSINESS THE COMPANY FACES ITS OWN DANGEROUS COMPETITION BECAUSE OF THE CANCELLATION LAST YEAR OF QVC'S MERGER WITH RIVAL HOME SHOPPING NETWORK INC ALSO CONTROLLED BY TCI AND A NUMBER OF OTHER HOME SHOPPING SERVICES ARE IN THE WORKS SOME ON WALL STREET BELIEVE THAT VIACOM HAS NOT ONLY THE BEST OFFER BUT ALSO THE BEST STRATEGIC LONGTERM POSITION THE VIACOMPARAMOUNTBLOCKBUSTER COMBINATION IS A MUCH STRONGER COMBINATION STRATEGICALLY FROM ANY POINT OF VIEW IN TERMS OF GROWTH COST CUTTING AND MANAGEMENT SAYS NANDITA PARKER AN ANALYST AT GERARD KLAUER MATTISON I DON'T THINK ONE MAN AS IN BARRY DILLER CAN CREATE OR DUPLICATE SHAREHOLDER VALUE TO THE EXTENT VIACOMBLOCKBUSTER CAN BUT MR DILLER STILL HAS HIS PARTISANS THOUGH MESSRS REDSTONE AND BIONDI ARE ADMIRED FOR THEIR STRATEGIC AND FINANCIAL SKILLS NEITHER HAS EVER RUN A CREATIVE BUSINESS AND THERE IS NO ONE AT VIACOM EXPERIENCED IN FILMED ENTERTAINMENT MANAGEMENT MR DILLER BY CONTRAST RAN THE ABC NETWORK OVERSAW BOTH THE PARAMOUNT AND FOX MOVIE STUDIOS AND STARTED THE FOX NETWORK FOR PARENT NEWS CORP MR GABELLI THE FUND MANAGER SAYS HE HAS TO TENDER HIS SHARES TO VIACOM UNDER THE CURRENT BIDS TO PROTECT HIS INVESTMENT AS FOR LONGTERM STRATEGY I'M COMFORTABLE WITH BOTH VIACOM AND QVC MR HE SAYS BUT MY SENSE IS THAT BARRY CAN PROBABLY RUN IT BETTER 9402090038 940209 MARKETING & MEDIA KODAK AP UNVEIL CAMERA WITHOUT FILM FOR NEWS EASTMAN KODAK CO AND THE ASSOCIATED PRESS INTRODUCED A JOINTLY DEVELOPED FILMLESS CAMERA THE FIRST OF ITS KIND DESIGNED SPECIFICALLY FOR NEWS PHOTOGRAPHERS THE NEWSCAMERA 2000 WILL BE DISTRIBUTED EXCLUSIVELY BY NEW YORKBASED AP WHICH WILL BUY THE CAMERAS FROM KODAK BASED IN ROCHESTER NY AND SELL THEM TO MEMBER NEWSPAPERS SUBSCRIBERS AND OTHERS THE COST IS ABOUT 26000 FOR THE CAMERA THREE REMOVABLE REUSABLE MEMORY CARTRIDGES AND A PORTABLE SCANNER AND TRANSMITTER BUT THE DEVICE COULD SAVE FILM AND DEVELOPING COSTS AN AP OFFICIAL SAID THE DIGITAL CAMERA CAPTURES IMAGES AS COMPUTER DATA RATHER THAN AS CHEMICAL CHANGES ON FILM PHOTOGRAPHERS ON DEADLINE THEREFORE CAN SHOOT PICTURES AND DELIVER THEM ELECTRONICALLY THROUGH A PHONE TO NEWSPAPERS WITHOUT LEAVING THE SCENE OR HASSLING WITH DEVELOPMENT DIGITAL CAMERAS AREN'T NEW ALTHOUGH THE NC 2000 IS THE ONLY ONE OUT THERE DEVOTED TO PHOTOJOURNALISM IS FASTER AND WORKS IN MORE VARIED LIGHTING SAID JOHN LARISH AN ELECTRONICIMAGING CONSULTANT THE ALLIANCE IS MUTUALLY BENEFICIAL TO AP WHERE SWIFTNESS IS CRUCIAL FOR THE NEWS WIRE SERVICE AND TO KODAK WHICH HAS A NICHE MARKET FOR SUCH CAMERAS ORDERS WON'T BE FILLED FOR MORE THAN A MONTH 9402090037 940209 LEISURE & ARTS THEATER LIFE'S TRAVAILS SET TO MUSIC BY JOEL HENNING CHICAGO PROUST WROTE THAT THE SOULS OF THOSE WE HAVE LOST ARE CAPTURED IN NATURAL OBJECTS ANIMALS PLANTS STONES PASTRIES IF WE COME UPON THEM AND RECOGNIZE THEIR VOICES THEY RETURN TO SHARE OUR LIVES BUT IT DEPENDS ON CHANCE WHETHER OR NOT WE CAN RECAPTURE OUR PASTS BEFORE WE OURSELVES MUST DIE MICHAEL SMITH WITH COAUTHOR PETER GLAZER HAS RECAPTURED HIS IN AN IRRESISTIBLY EVOCATIVE MUSICAL THEATER PIECE CALLED MICHAEL MARGARET PAT & KATE AND SUBTITLED A MUSICAL REMINISCENCE THE OBJECTS IN WHICH MR SMITH'S LOST SOULS LURK INCLUDE THE GLOOM OF THE CONFESSIONAL AND THE HARD CLASSROOM BENCHES OF OUR LADY OF THE VALLEY IN ORANGE NJ A SCRATCHY RECORDING OF MR SMITH SINGING PAPER DOLL AT AGE FOUR THE SMELL OF SURF AT THE LOCAL BEACH CAR TRIPS TO PENNSYLVANIA THE BEER STENCH ON HIS FATHER'S BREATH THE REEK OF KEROSENE AND RAW LUMBER IN HIS FIRST GIRLFRIEND'S HOUSE ACROSS THE TRACKS THE SOUND OF THE RADIO PLAYING NAT KING COLE SINGING SOMEWHERE ALONG THE WAY THE SHARP '40S SUITS AND FEDORAS OF THE BAND IN THE BRIGHTLY LIT GAZEBO FLORIDA'S CLEAR BLUE SKIES ST PETERSBURG'S SPANISH BUILDINGS ALL IN WILD PASTELS ALL THESE AND MANY MORE ARE EVOKED IN AN AUTOBIOGRAPHICAL EVENING OF CONSISTENTLY FUNNY AND MOVING MONOLOGUE AND SONG MR SMITH IS A FOLK SINGER WHO HAS COMPOSED MUSIC FOR STEVE GOODMAN JIMMY BUFFET AND THE TONY AWARDWINNING STEPPENWOLF THEATRE COMPANY PRODUCTION OF THE GRAPES OF WRATH FOR MICHAEL MARGARET PAT & KATE HE COMPOSED AND PERFORMS A DOZEN NUMBERS IN STYLES RANGING FROM FOLK TO ROCK BUT HE HAS ALSO ASSEMBLED ARTIFACTS OF HIS LIFE INCLUDING FAMILY PHOTOS AND A LIFETIME OF LETTERS FROM HIS THREE SISTERS THIS MIGHT HAVE AMOUNTED TO NO MORE THAN A VEHICLE FOR MR SMITH TO VENT ANGER AND DESPAIR HIS LIFE HAS HAD MORE THAN ITS SHARE OF DARK MOMENTS HE ABANDONED HIS FIRST REAL GIRLFRIEND WHEN SHE GOT PREGNANT HE SPENT MANY NIGHTS SLEEPING ON THE EMPTY STAGES OF THE COFFEEHOUSES THAT BOOKED HIM FOR PENNIES HIS FATHER COMMITTED SUICIDE THE PLAY MIGHT ALSO JUST AS WELL HAVE BEEN A SET OF MEMORIES OF ABUSE FROM SIBLINGS PARENTS AND PRIESTS A SAVAGE ATTACK ON THE MOTHER CHURCH OR ANOTHER DEBATE ABOUT FAMILY VALUES INSTEAD WE ARE ENTERTAINED AND MOVED BY A MAN WHO SEEMS ALMOST IMPOSSIBLY COMFORTABLE IN HIS OWN SKIN HE NEVER BECAME A STAR ABOUT FIVE FOLK SINGERS GOT TO BE MILLIONAIRES AND THREE OF THEM WERE BOB DYLAN HIS SISTERS ENDED UP PLUMP RESPONSIBLE ADULTS RAISING CHILDREN OF THEIR OWN I'M TOO SHORT TO BE A GRANDMOTHER SAYS KATE IN ONE OF HER LAST LETTERS THIS IS A ONEMAN SHOW AND YET IT'S NOT SHARING THE STAGE ARE FOUR ADDITIONAL MUSICIANS PAT FLEMING ON GUITAR JOEL MACMILLAN BASS MIRIAM STURM VIOLIN AND WILLY SCHWARZ ACCORDION THEY DO MORE THAN PLAY MUSIC THEY PLAY ROLES UNCLE JOHNNY BACK FROM BURMA AFTER WORLD WAR II MARGARET AT AGE THREE MESSING UP AN AMATEUR RECORDING SESSION COFFEEHOUSE BEATNIKS SINGERS DANCERS FRIENDS AND WHATEVER ELSE NEEDS FILLING OUT MR SMITH IS ESPECIALLY BLESSED WITH THE PRESENCE OF THE RADIANT AND TALENTED MS STURM WHO RECENTLY HAS MADE SERIOUS CONTRIBUTIONS TO THE SUCCESS OF SEVERAL OTHER THEATER PIECES INCLUDING THE GOODMAN THEATRE'S BLACK SNOW AND THE BROADWAY PRODUCTION OF GRAPES OF WRATH AN ACCOMPLISHED FIDDLER MS STURM ALSO MOVES LIKE A STORYBOOK PRINCESS SOON NO PLAYWRIGHT WHO CAN CAST MS STURM WILL WANT TO MISS THE CHANCE TO CREATE A FIDDLEPLAYING PRESENCE ON STAGE COAUTHOR PETER GLAZER ALSO DIRECTS MICHAEL MARGARET PAT & KATE MR GLAZER HAS MADE A SPECIALTY OF THE SMALL ENSEMBLE MUSICAL WHICH SEEMS TO DO ESPECIALLY WELL IN CHICAGO HE DIRECTED THE LOCAL PRODUCTION OF THE CABARETSTYLE PUMP BOYS AND DINETTES WHICH RAN FOR FIVE YEARS AND CREATED WOODY GUTHRIE'S AMERICAN SONG CURRENTLY ENDING A LONG RUN HERE HIS EXPERIENCE SERVES HIM WELL WITH MR SMITH'S AUTOBIOGRAPHY THE SCRIPT IS DENSE AND MAY BE A BIT TOO LONG IN THE FIRST ACT BUT MR GLAZER PROVIDES THE ESSENTIAL DAM TO MR SMITH'S STREAM OF CONSCIOUSNESS JAMES DARDENNE'S SET IMAGINATIVELY SUGGESTS THE PHYSICAL ARTIFACTS OF MR SMITH' S REMEMBRANCES HE HAS COLLECTED LOTS OF FURNITURE AND STAINED GLASS OF THE KIND POPULAR IN THE '40S AND '50S AND PROVIDES OLDFASHIONED WINDOWS THAT SERVE ALSO AS PROJECTION SCREENS FOR THE ESSENTIAL FAMILY PHOTOS THE BEST WAS TAKEN OF MARGARET'S FIRST COMMUNION AND HAS THE FOUR CLEANED AND POLISHED SIBLINGS LINED UP WITH THEIR HANDS FOLDED THE WAY THE NUNS TAUGHT THEM IN THIS PHOTO MICHAEL THE OLDEST AND TALLEST HAS HIS HEAD CUT OFF I DON'T KNOW WHETHER MR SMITH INTENDED HIS HEADLESS IMAGE AS MORE THAN A FUNNY SNAPSHOT OF THIS LOVING YOUNG FAMILY BUT IT NOT ONLY REPRESENTS WHAT'S WONDERFUL BUT ALSO WHAT'S MISSING IN THIS WORK MICHAEL MARGARET PAT & KATE IS A WORK OF MR SMITH'S HEART NOT HIS HEAD HE DOESN'T EXPLORE HIS FATHER'S SUICIDE ALL WE LEARN IS THAT MOM AND DAD WERE HAVING ARGUMENTS AND THE KIDS HATED THE SMELL OF BEER THE EVENING'S CLIMAX HOWEVER IS MR SMITH'S SIMPLE PAINFUL SONG I BROUGHT MY FATHER WITH ME IT IS A BEAUTIFUL MOMENT AND MAYBE THE REASON THAT MR SMITH CAN OFFER US THIS MOMENT IS BECAUSE HE CAN LET GO AND FORGIVE WITHOUT UNDERSTANDING WHY MAYBE HE'S GOT THE RIGHT IDEA THIS VICTORY GARDENS PRODUCTION WILL RUN THROUGH MARCH 13 9402090036 940209 UAW WARNS GM OF STRIKE AT SEVENFACTORY COMPLEX DETROIT THE UNITED AUTO WORKERS UNION WARNED GENERAL MOTORS CORP IT COULD STRIKE A KEY FLINT MICH COMPLEX OF SEVEN PARTSMAKING FACTORIES AS SOON AS 10 AM TUESDAY THE SEVEN FACTORIES IN THE COMPLEX MAKE SPARK PLUGS FUEL PUMPS INSTRUMENT CLUSTERS AND OTHER PARTS FOR GM'S AC ROCHESTER AND DELCO ELECTRONIC PARTS DIVISIONS A STRIKE WOULD IDLE NUMEROUS ASSEMBLY PLANTS WITHIN DAYS THUS THE FINANCIAL EFFECT TO THE COMPANY WOULD BE MUCH GREATER THAN A WORK STOPPAGE AT A SINGLE ASSEMBLY PLANT LIKE THE FOURDAY STRIKE THAT IDLED GM'S SHREVEPORT LA TRUCK PLANT LAST MONTH THE 6800 UAWREPRESENTED WORKERS IN THE FLINT COMPLEX HAVE YET TO REACH A LOCAL AGREEMENT WITH GM NEITHER THE COMPANY NOR THE UNION IS SAYING WHAT ISSUES ARE UNRESOLVED STEPHEN P YOKICH THE UAW'S TOP GM NEGOTIATOR SAID LAST MONTH THE UNION WAS PUSHING GM TO REACH LOCAL AGREEMENTS AT ITS TRUCK PLANTS AND AFTER THAT THE UNION PLANNED TO TURN UP THE PRESSURE ON GM PARTS PLANTS MANY OF WHICH ALSO DON'T HAVE LOCAL LABOR CONTRACTS GM SETTLED ITS LATEST LOCAL AGREEMENT AT A TRUCK PLANT THIS WEEK 9402090035 940209 POLITICS & POLICY CLINTON'S EDUCATION REFORM PACKAGE SCHOOLTOWORK LEGISLATION CLEAR SENATE BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE PASSED PRESIDENT CLINTON'S MAJOR EDUCATION REFORM PACKAGE AS WELL AS THE ADMINISTRATION'S PIONEERING SCHOOLTOWORK LEGISLATION AFTER FOUR DAYS OF DEBATE THE SENATE ALSO APPROVED THE FIRST FEDERAL PROGRAM AIMED AT REDUCING VIOLENCE IN THE SCHOOLS THE HOUSE EDUCATION AND LABOR COMMITTEE MEANWHILE COMPROMISED ON THE MOST CONTROVERSIAL PART OF THE ADMINISTRATION'S OTHER EDUCATION INITIATIVE APPROVING 7 BILLION FOR DISADVANTAGED CHILDREN WHILE CONCENTRATING 14 BILLION OF THE FUNDS ON THE POOREST SCHOOL DISTRICTS THE EDUCATION REFORM PACKAGE CALLED GOALS 2000 AND THE SCHOOLTOWORK LEGISLATION NOW GO TO A CONFERENCE COMMITTEE WITH THE HOUSE WHICH PASSED SIMILAR VERSIONS OF THE BILLS THE HOUSE HAS YET TO CONSIDER THE SAFE SCHOOLS ACT GOALS 2000 WHICH THE SENATE PASSED 7125 CREATES A NATIONAL FRAMEWORK FOR SETTING HIGH STANDARDS IN SCHOOLS THE 422 MILLION PLAN ESTABLISHES EIGHT NATIONAL EDUCATION GOALS AND SETS UP A PANEL TO DEVISE MODEL ACADEMIC AND TESTING STANDARDS IT ALSO CREATES A NATIONAL SKILL STANDARDS BOARD THAT WOULD DETERMINE WHAT SKILLS EMPLOYEES NEED TO WORK IN VARIOUS INDUSTRIES THIS IS A BOTTOMSUP EDUCATION REFORM WITH SUPPORT FROM THE TOP DOWN SAID SEN EDWARD KENNEDY D MASS THE BILL'S MAIN SPONSOR GOALS 2000 ENCOURAGES SCHOOL REFORM BUT DOESN'T MANDATE ANYTHING IF STATES WANT TO GET FEDERAL MONEY TO REFORM THEIR SCHOOLS THEY MUST SUBMIT COMPREHENSIVE PLANS TO THE EDUCATION DEPARTMENT THAT EXPLAIN HOW THEY WOULD REACH THE NATIONAL EDUCATION GOALS THEY AREN'T REQUIRED TO ADOPT ANY OF THE VOLUNTARY STANDARDS BUT RATHER ARE ENCOURAGED TO USE THEM TO DEVISE PLANS TO MEET THEIR LOCAL NEEDS SINCE THE FEDERAL GOVERNMENT CONTRIBUTES ONLY SIX CENTS OF EVERY DOLLAR SPENT ON EDUCATION MOST LAWMAKERS BELIEVE LOCAL DISTRICTS SHOULD CONTROL THEIR OWN SCHOOLS THE SENATE WAS SO CONCERNED THAT PEOPLE WOULD MISTAKENLY INTERPRET THE LEGISLATION AS FEDERALIZING EDUCATION OR ESTABLISHING A NATIONAL CURRICULUM THAT IT INSERTED THE WORD VOLUNTARY AT MORE THAN 75 PLACES ALREADY THOUGH 45 STATES HAVE STARTED DEVELOPING NEW ACADEMIC STANDARDS THE SENATE ALSO INCORPORATED THE SAFE SCHOOLS ACT INTO THE GOALS 2000 BILL SETTING ASIDE 175 MILLION IN GRANT MONEY DURING THE NEXT TWO YEARS FOR CHRONICALLY VIOLENT SCHOOLS THESE SCHOOLS COULD RECEIVE GRANTS OF AS MUCH AS 3 MILLION TO SET UP CONFLICTRESOLUTION AND OTHER PROGRAMS DESIGNED TO REDUCE VIOLENCE ONLY 10 OF THE MONEY COULD BE SPENT ON SECURITY DEVICES SUCH AS METAL DETECTORS THE SCHOOLTOWORK OPPORTUNITIES ACT WHICH PASSED 6231 AUTHORIZES 300 MILLION IN GRANTS FOR COMMUNITIES TO CREATE BETTER PROGRAMS FOR HIGHSCHOOL STUDENTS WHO DON'T PLAN TO GO TO COLLEGE 9402090034 940209 TAKECARE CANCELS MERGER WITH FHP INTERNATIONAL CONCORD CALIF TAKECARE INC WHICH LAST MONTH AGREED IN PRINCIPLE TO BE ACQUIRED BY FHP INTERNATIONAL CORP SAID THE AGREEMENT HAS BEEN TERMINATED AND IT PLANS TO DISCUSS MERGERS WITH OTHER COMPANIES TAKECARE A HEALTH MAINTENANCE ORGANIZATION SIGNED A PRELIMINARY AGREEMENT JAN 10 TO BE ACQUIRED BY FHP A FOUNTAIN VALLEY CALIFBASED HMO FOR 829 MILLION IN CASH AND SECURITIES THE MERGER WOULD HAVE CREATED ONE OF THE NATION'S TOP THREE PUBLICLY TRADED HMOS HOWEVER SHORTLY AFTER THE PROPOSED MERGER WAS ANNOUNCED TAKECARE SHAREHOLDERS WHO COLLECTIVELY OWN 22 OF THE COMPANY FILED SUIT ALLEGING THE COMPANY'S BOARD NEGLECTED ITS FIDUCIARY DUTIES IN AGREEING TO SELL THE COMPANY AT THAT TIME TAKECARE SAID THE SUIT WAS WITHOUT MERIT AND IT WAS PROCEEDING WITH PLANS TO CLOSE THE SALE YESTERDAY A TAKECARE SPOKESMAN SAID THERE WAS NO CONNECTION BETWEEN THE LAWSUIT AND THE COMPANY'S ANNOUNCEMENT TERMINATING ITS AGREEMENT WITH FHP TAKECARE SAID FHP IS STILL BEING CONSIDERED AS A COMPANY TO MERGE WITH BUT OTHER COMPANIES HAVE EXPRESSED INTEREST SINCE ITS AGREEMENT WITH FHP WAS ANNOUNCED UNITED HEALTHCARE CORP OF MINNETONKA MINN HAS BEEN PURSUING US IN THE PAST THE TAKECARE SPOKESMAN SAID BUT HE DECLINED TO SAY WHOM THE COMPANY IS TALKING WITH ABOUT A POSSIBLE ACQUISITION 9402090033 940209 BUSINESS BRIEF FIRST FIDELITY BANCORP OVERSUBSCRIPTION REPORTED IN OFFER FOR SAVINGS BANK FIRST FIDELITY BANCORP SAID THE STOCK PORTION OF ITS ACQUISITION OF PEOPLES WESTCHESTER SAVINGS BANK WAS OVERSUBSCRIBED THE 235 MILLION OFFER CALLED FOR 46 OF THE PEOPLES WESTCHESTER SHAREHOLDERS TO RECEIVE FIRST FIDELITY STOCK AND THE REMAINDER TO RECEIVE 4086 A SHARE IN CASH FIRST FIDELITY BASED IN LAWRENCEVILLE NJ SAID HOLDERS OF ABOUT 12 MILLION PEOPLES WESTCHESTER SHARES WHO HAD REQUESTED STOCK WOULD RECEIVE CASH INSTEAD THEY WILL BE SELECTED BY A RANDOM LOTTERY ABOUT 26 MILLION PEOPLES WESTCHESTER SHARES WILL BE EXCHANGED FOR STOCK AND ABOUT THREE MILLION FOR CASH PEOPLES WESTCHESTER OPERATED 31 OFFICES IN WESTCHESTER COUNTY NY FIRST FIDELITY OPERATES 650 OFFICES IN CONNECTICUT NEW JERSEY PENNSYLVANIA AND NEW YORK 9402090032 940209 LEISURE & ARTS BOOKSHELF AN ANGLO BOYHOOD AMONG AFRIKANERS BY FRANK RUDDY I WAS HAVING LUNCH ONE DAY WITH GEORGE HALEY AT THE OLD ROGER SMITH HOTEL AND HE TOLD ME HIS BROTHER WAS PLANNING TO WRITE A BOOK ON HIS FAMILY'S HISTORY YOU'RE A NICE FELLOW GEORGE I THOUGHT TO MYSELF BUT WHO IS GOING TO BUY A BOOK ABOUT YOUR FAMILY IF THE PLAYWRIGHT DRURY PIFER HAD TOLD ME HE WAS GOING TO WRITE A BOOK ABOUT GROWING UP IN SOUTH AFRICA IN THE '30S AND '40S I WOULD HAVE REACTED THE SAME WAY SO MUCH FOR INSIGHT THE HALEY BOOK TURNED OUT TO BE ROOTS DRURY PIFER'S BITTERSWEET REMEMBRANCE OF HIS FAMILY'S STRUGGLES IN A COUNTRY THAT NEVER ACCEPTED THEM INNOCENTS IN AFRICA HARCOURT BRACE 338 PAGES 2495 TAKES ITS PLACE AMONG BOOKS LIKE ELSPETH HUXLEY'S FLAME TREES OF THIKA AS ONE OF THE BEST AUTOBIOGRAPHICAL TALES TO COME OUT OF AFRICA SOUTH AFRICA WITH THE WORLD'S BIGGEST DIAMOND MINES THE SPARTAN LIFE OF COMPANY TOWNS THE SULLEN AFRIKANERS THE HITLER RALLIES THE CONCENTRATION CAMPS AND APARTHEID IN FACT IF NOT IN LAW IS THE FASCINATING BACKGROUND OF HIS FAMILY'S STORY AND MR PIFER TELLS IT MOVINGLY IN 1932 TWO STARRYEYED INNOCENTS HOCKED EVERYTHING THEY OWNED EVEN WEDDING PRESENTS BORROWED THE REST AND WENT TO SOUTH AFRICA THERE WAS NO WORK IN SEATTLE FOR GUS PIFER A MINING ENGINEER BUT A SOUTH AFRICAN MINING COMPANY OFFERED HIM A JOB NOT MUCH OF A JOB REALLY LITTLE BETTER THAN A DAY LABORER BUT PIFER WAS IN HIS SON'S WORDS ONE OF THOSE CREATURES ATTRACTED TO TREASURE TO MINERALS THAT RUN LIKE A NETWORK OF METAL NERVES UNDER THE EARTH HE JUST COULDN'T PASS UP A CHANCE TO WORK IN A GOLD MINE IN THE TRANSVAAL HE BELIEVED IN HIMSELF AND WITH HARD WORK AND KNOWHOW HE WOULD MAKE HIS NAME AND FORTUNE HIS WIFE PATRICIA BELIEVED TOO AND FOR A WHILE IT LOOKED LIKE THEIR DREAM WAS COMING TRUE GUS CAUGHT THE ATTENTION OF SIR ERNEST OPPENHEIMER WHO HIRED HIM TO RUN DIAMOND MINES FOR DEBEERS DRURY AND HIS SISTER WERE BORN AS GUS AND PATRICIA MOVED AROUND GRIM MINING TOWNS LIKE KLEINZEE IN THE NAMAQUALAND DESERT AND ORANGEMUND IN PRESENT DAY NAMIBIA GUS NEVER LEARNED HOW TO PLAY COMPANY POLITICS AND THE GREAT PROMOTIONS OPPENHEIMER PROMISED HIM ALWAYS HAD A WAY OF GOING TO OPPENHEIMER'S CRONIES THIRTEEN YEARS AFTER ARRIVING IN SOUTH AFRICA PIFER QUIT AND TOOK HIS FAMILY ON A DESPERATE 1000MILE JOURNEY NORTH TO THE CONGO THERE WERE NO BOATS OR PLANES FOR CIVILIANS IN 1945 BUT HE HAD HEARD ABOUT A NORWEGIAN FREIGHTER IN MITADI AND GAMBLED THAT HE COULD TALK THE ECCENTRIC CAPTAIN INTO TAKING THEM BACK TO THE STATES ACTUALLY DRURY'S MOTHER DID THE TALKING IF THE ELDER PIFER'S MINING CAREER WENT SOUR IN SOUTH AFRICA THE PIFER FAMILY LIFE WAS RICH AND WARM NEARLY HALF A CENTURY LATER DIARIES LETTERS HOME FAMILY PHOTO ALBUMS AND OLD HOME MOVIES OF THOSE AFRICAN DAYS CONJURED THEM UP FOR DRURY ALL OVER AGAIN THE TIMES HE SQUISHED HIMSELF ON THE BACK LEDGE OF THEIR LINCOLN ZEPHYR CLUNKER AS IT CHUGGED THROUGH THE DESERT THE AWE HE FELT FOR RUDOLPH THE KHOIKOI WHO TAUGHT HIM HOW TO RIDE THE BLASTS OFF THE ATLANTIC THAT TRANSFORMED THE ELECTRIC WIRES OF A DIAMOND MINING TOWN INTO A GREAT AEOLIAN HARP DRURY'S MOTHER WAS A WITTY ADVENTUROUS WOMAN WHO COULD WITHSTAND EVERY PRIVATION AS LONG AS SHE HAD HER PIANO IT IS SHE WHO BUOYS UP THE FAMILY THROUGH THEIR DISAPPOINTMENTS WHO GROWS GARDENS IN THE DESERT TURNS SHEDS INTO LIBRARIES EDUCATES AFRIKANER CHILDREN AND WRITES WONDERFUL LETTERS HOME THOUGH DRURY SPOKE AFRIKAANS LIKE AN AFRIKANER THE AFRIKANERS THOUGHT HE WAS ENGLISH AND DESPISED HIM NASTIER ONES TERRORIZED HIM IN GANGS AFTER SCHOOL UNTIL ONE DAY THE GANG'S LEADER THE HANDSOME BOY JUST DIED TO DRURY'S CONSIDERABLE HAPPINESS DRURY FARED EVEN WORSE WITH THE OLDER AFRIKANER POPULATION WHAT PROBABLY SEALED HIS FATE WITH THIS GROUP WAS THE SIAMESE TWINS EPISODE HE HAD JUST READ AN ARTICLE ON SIAMESE TWINS IN A SCIENTIFIC JOURNAL WHEN TO HIS AMAZEMENT HE ENCOUNTERED A TWOHEADED DOG EXCITED HE RACED NEXT DOOR TO THE HOME OF THE DOYENNE OF THE AFRIKANER COMMUNITY THE KIND OF PERSON MARGARET HAMILTON USED TO PLAY IN THE MOVIES HE DRAGGED HER OUT TO SEE HIS AMAZING PHENOMENON WHICH ON CLOSER INSPECTION TURNED OUT TO BE ACTUALLY TWO DOGS IN FLAGRANTE DELICTO SHE WENT BACK INSIDE MUTTERING SOMETHING LIKE LITTLE PERVERT IN AFRIKAANS HE BRINGS A PLAYWRIGHT'S SENSE OF DRAMA TO SOME OF HIS LIVELIEST DESCRIPTIONS RECALLING THE BOISTEROUS LEATHERSTRAPWIELDING BROTHER KEENE AT THE CATHOLIC SCHOOL HE ATTENDED DRURY THINKS OF A CREATURE DREDGED UP FROM THE DEPTHS OF A FROZEN LAKE IN SOME HANS CHRISTIAN ANDERSEN TALE THE NORTH WIND WHO FREEZES LITTLE KAI AND BLOWS THE SNOW QUEEN'S SLED OUT PAST THE POLE STAR DRURY PIFER NEVER RETURNED TO SOUTH AFRICA THE PEOPLE WHO WERE ONCE HIS UNIVERSE ARE DEAD NOW MOST OF THEM AND THEIR SOUTH AFRICA ENDS FOR GOOD WITH THE COUNTRY'S FIRST FREE ELECTIONS THIS APRIL THERE'S A CERTAIN SYMMETRY THAT MR PIFER'S REMEMBRANCES OF A SOUTH AFRICA OF LONG AGO SHOULD APPEAR JUST AS THE WORLD GETS READY TO WELCOME THE SOUTH AFRICA OF THE FUTURE MR RUDDY IS A FORMER US AMBASSADOR TO EQUATORIAL GUINEA 9402090031 940209 RULES SET ON CONVERSIONS OF MUTUAL SAVINGS BANKS WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP CAUGHT IN THE SPOTLIGHT OF CONGRESSIONAL CRITICISM ADOPTED INTERIM RULES TO PREVENT INSIDER WINDFALLS WHEN STATECHARTERED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDEROWNED INSTITUTIONS UNDER THE RULES THE BANKS MUST SUBMIT PROPOSED CONVERSIONS TO THE AGENCY FOR ITS APPROVAL THE FDIC SAID IT IS CONCERNED THAT OFFICERS DIRECTORS AND OTHER INSIDERS AT CONVERTING INSTITUTIONS MAY BE UNJUSTLY ENRICHED AT THE EXPENSE OF DEPOSITORS OTHER CUSTOMERS AND THE FDIC'S OWN DEPOSITINSURANCE FUND THE INSIDERS FOR EXAMPLE MAY GET MORE THAN THEIR FAIR SHARE OF THE STOCK OFFERING OR GET EXCESSIVE COMPENSATION PACKAGES THE AGENCY SAID ON JAN 24 THE AGENCY PROPOSED GUIDELINES FOR CONVERSIONS OF STATECHARTERED MUTUAL SAVINGS BANKS BUT DIDN'T HAVE ANY FIRM REQUIREMENTS CONVERSIONS OF THESE INSTITUTIONS WAS SUBJECT ONLY TO VARYING STATE REGULATIONS SAVINGS AND LOAN ASSOCIATIONS AND FEDERALLY CHARTERED SAVINGS BANKS CONVERTING TO STOCKHOLDER OWNERSHIP WERE SUBJECT TO LIMITS ON INSIDER COMPENSATION IMPOSED BY THE OFFICE OF THRIFT SUPERVISION THE FDIC SAID THE OTS STANDARD IS ONE FACTOR IT WILL CONSIDER IN RULING ON CONVERSIONS OF STATECHARTERED SAVINGS BANKS IT SAID IT WILL TAKE COMMENTS FOR 30 DAYS AND WILL DECIDE ON A FINAL APPROACH IN A FEW MONTHS REP HENRY GONZALEZ D TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN PRAISED THE FDIC ACTION BUT SAID LEGISLATION MAY STILL BE NECESSARY TO CLOSE THE LOOPHOLE LETTING OFFICIALS OF STATECHARTERED SAVINGS BANKS MAKE BIG BUCKS THROUGH FANCY FOOTWORK 9402090030 940209 BUSINESS BRIEF ENSERCH CORP REDEMPTIONS OF DEBENTURES PREFERRED ARE SET FOR MARCH ENSERCH CORP PLANS TO REDEEM 15 MILLION OF ITS ADJUSTABLERATE CUMULATIVE PREFERRED SHARES SERIES D ON MARCH 11 FOR 50 A SHARE PLUS ACCRUED DIVIDENDS THE DALLAS NATURALGAS COMPANY SAID IT WILL ALSO REDEEM SINKINGFUND DEBENTURES ON MARCH 11 IT WILL REDEEM ITS 75 DUE 1996 WITH A PRINCIPAL AMOUNT OF 75 MILLION FOR 100604 OF PRINCIPAL PLUS ACCRUED INTEREST ITS 875 DUE 2001 WITH A PRINCIPAL AMOUNT OF 20 MILLION FOR 102552 OF PRINCIPAL PLUS ACCRUED INTEREST AND ITS 85 DUE 2002 WITH A PRINCIPAL AMOUNT OF 192 MILLION FOR 10275 OF PRINCIPAL PLUS ACCRUED INTEREST ON MARCH 15 ENSERCH WILL REDEEM ITS 765 DUE 1998 WITH A PRINCIPAL AMOUNT OF 9 MILLION 34 MILLION AT 100 OF PRINCIPAL UNDER SINKINGFUND PROVISIONS AND 56 MILLION AT 100957 OF PRINCIPAL PLUS ACCRUED INTEREST FOR EACH IT WILL ALSO REDEEM ITS 895 DUE 1999 WITH A PRINCIPAL AMOUNT OF 181 MILLION38 MILLION AT 100 OF PRINCIPAL UNDER SINKINGFUND PROVISIONS AND 144 MILLION AT 101492 OF PRINCIPAL UNDER OPTIONAL REDEMPTION PROVISIONS PLUS ACCRUED INTEREST FOR EACH 9402090029 940209 TEXAS JOURNAL UTILITIES LOOK FOR A WAY TO TURN SMOKE INTO ROADS BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL IF TEXAS A&M UNIVERSITY PROFESSOR DON SAYLAK HAS HIS WAY SOMEDAY THE NATION'S HIGHWAYS WILL BE PAVED WITH THE STUFF OF ACID RAIN MR SAYLAK HAS SPENT THE PAST EIGHT YEARS FINDING USES FOR THE GUNK THAT TEXAS COAL PLANTS ONCE SPEWED INTO THE ATMOSPHERE ENVIRONMENTAL LAWS HAVE FORCED UTILITIES TO CAPTURE THE SMOKE BUT NOW THEY'RE LEFT WITH 13 MILLION TONS OF BYPRODUCT ANNUALLY THAT IS STOCKPILED OR BURIED IN LANDFILLS AND SINCE TEXAS CONSUMES MORE COAL THAN ANY OTHER STATE 50 MORE THAN SECOND PLACE INDIANA A GROUP OF UTILITIES INCLUDING HOUSTON LIGHTING & POWER CO WHICH IS A UNIT OF HOUSTON INDUSTRIES AND TEXAS UTILITIES CO IN DALLAS HAS TURNED TO MR SAYLAK AND OTHER RESEARCHERS AT TEXAS A&M'S TEXAS TRANSPORTATION INSTITUTE TO FIGURE OUT WHAT TO DO WITH THE LEFTOVERS WHAT MR SAYLAK HAS TO WORK WITH IS A HODGEPODGE OF CALCIUM SULFATE AND CALCIUM SULFITE COMPOUNDS DUBBED GYPSITE BY RESEARCHERS WHEN CALCIUM SULFATE OCCURS IN NATURE IT'S KNOWN AS GYPSUM IF EMITTED INTO THE ATOMOSPHERE THE SULFUR DIOXIDE IN THE COMPOUND GOES THROUGH A SERIES OF CHEMICAL REACTIONS TO CREATE A COMPONENT OF ACID RAIN USING THE GYPSITE COMBINED WITH EITHER CEMENT OR ASH ALSO PRODUCED BY THE COAL POWER PLANTS MR SAYLAK AND HIS RESEARCHERS HAVE CREATED A SUBSTANCE THAT HE SAYS CAN REPLACE LIMESTONE AND GRAVEL IN THE BUILDING OF ROADS FOUR TEST ROADS NEAR THE UNIVERSITY HAVE SO FAR HELD UP SAYS MR SAYLAK AND RESEARCHERS HAVE USED THE SUBSTANCE TO MAKE CONSTRUCTION MATERIALS LIKE DRYWALL AND NOBAKE BRICKS CONVENTIONAL CLAY BRICKS REQUIRE A 3000DEGREE FAHRENHEIT HEATING PROCESS THE DISCOVERY IS A BRIGHT PROSPECT FOR TEXAS UTILITIES WHICH WOULD RATHER SELL THE BYPRODUCT THAN STORE IT AND IF SUBSEQUENT TESTS PROVE SUCCESSFUL RESEARCHERS ESTIMATE THE GYPSITE MATERIAL WILL BE ABOUT 30 CHEAPER THAN OTHER ROAD BUILDING MATERIALS OUR ONLY OPTION NOW IS TO LANDFILL THE PRODUCT SAYS CINDY WEST A HOUSTON LIGHTING & POWER SPOKESWOMAN IF THERE'S SOME POSITIVE USE FOR THE PRODUCT THAT'S A BETTER OPTION AND IN THE LONG RUN IT'S THE ENVIRONMENTALLY BENEFICIAL THING TO DO THE TECHNOLOGY HAS YET TO UNDERGO A REALWORLD TEST LET ALONE COMMERCIAL APPLICATION BUT RESEARCHERS ARE HOPING TO SOON USE THE SUBSTANCE ON A SECTION OF STATE HIGHWAY IN LEON COUNTY NORTH OF BRYANCOLLEGE STATION IN ADDITION A NEW STATE LAW ENCOURAGES STATE TRANSPORTATION OFFICIALS TO USE WASTE MATERIALS LIKE TIRES AND POWERPLANT BYPRODUCTS IN ROAD CONSTRUCTION MR SAYLAK ALSO ENVISIONS LOWCOST BUILDING PRODUCTS THAT COULD BE USED TO CREATE AFFORDABLE HOUSING BUT A TOUGHER HURDLE THAN STRENGTH TESTS LOOMS AHEAD ALTHOUGH MR SAYLAK SAYS ENVIRONMENTAL TESTS AT THE UNIVERSITY SHOW THE SUBSTANCE TO BE SAFE HE SAYS IT WILL TAKE SOME CONVINCING BEFORE CONTRACTORS AND THE GENERAL PUBLIC FEEL COMFORTABLE BUILDING ROADS AND LIVING IN HOUSES BUILT WITH AN INDUSTRIALWASTE PRODUCT CONTRACTORS ARE VERY LEERY ABOUT THE LIABILITY OF USING MATERIALS THAT ARE NONCONVENTIONAL AND THEY HAVE EVERY RIGHT TO BE SAYS MR SAYLAK WE STILL HAVE TO GET OVER THE STIGMA 9402090028 940209 INTERNATIONAL BRIEF DEGUSSA AG GROWTH IN CHEMICALS SECTOR LED 25 RISE IN PRETAX PROFIT GERMANY'S DEGUSSA AG SAID ITS PRETAX PROFIT IN THE FISCAL FIRST QUARTER ROSE 25 WITH GAINS LED BY ITS CHEMICALS SECTOR THE FRANKFURT CONCERN REPORTED PRETAX PROFIT FOR THE QUARTER ENDED DEC 31 OF 61 MILLION MARKS 347 MILLION UP FROM 49 MILLION MARKS A YEAR EARLIER DEGUSSA EXPECTS IMPROVEMENTS TO CONTINUE IN THIS FISCAL YEAR CHAIRMAN GERT BECKER SAID THE CHAIRMAN ATTRIBUTED THE IMPROVED RESULTS TO THE RESTRUCTURING BEGUN THREE YEARS AGO WHICH HAS ENABLED THE METALS CHEMICALS AND PHARMACEUTICALS COMPANY TO BOLSTER ITS PROFITS DESPITE CONTINUING ECONOMIC DIFFICULTIES DEGUSSA SAID CHEMICALS SALES ROSE 5 AND PROFIT WAS CLEARLY OVER THE PREVIOUS YEAR THE IMPROVEMENT CAME AS A RESULT OF COST RELIEF AND REVIVAL OF DEMAND IN FOREIGN MARKETS DEGUSSA SAID IN FRANKFURT TRADING DEGUSSA SHARES ROSE 13 MARKS 739 TO 467 MARKS 9402090027 940209 BUSINESS BRIEF UNITED PARCEL SERVICE OF AMERICA ONEDAY TEAMSTERS STRIKE TO COST FIRM 50 MILLION UNITED PARCEL SERVICE OF AMERICA INC ESTIMATED THE DAYLONG STRIKE BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS WILL COST THE COMPANY MORE THAN 50 MILLION IN LOST BUSINESS AND ADDED EXPENSES STILL DIGGING OUT FROM A PACKAGE PILEUP THE CLOSELY HELD PACKAGEDELIVERY CONCERN BASED IN ATLANTA SAID THE MONDAY WALKOUT SCARED AWAY SEVERAL LARGE CUSTOMERS PERHAPS PERMANENTLY A SPOKESMAN SAID THE TOTAL COULD REACH AS HIGH AS 60 MILLION THE TEAMSTERS CALLED THE STRIKE TO OPPOSE THE COMPANY'S NEW WEIGHT LIMIT WHICH WENT TO 150 POUNDS FROM 70 POUNDS THE UNION SAID THE HEAVIER PACKAGES ARE DANGEROUS TO WORKERS' HEALTH A UPS SPOKESMAN SAID MOST OF THE DAMAGE WAS FROM LOST REVENUES UPS SAID IT INCLUDED IN ITS CALCULATION THE COST OF RENTING TRUCKS CALLING MORE THAN 100000 CUSTOMERS TO REASSURE THEM AND THE SALARIES OF MANAGERS WHO HAD TO DELIVER PACKAGES ON MONDAY THE FIGURE TAKES INTO ACCOUNT SAVINGS FROM UNPAID SALARIES FOR STRIKING WORKERS IN THE SETTLEMENT UPS SAID IT RESERVES THE RIGHT TO HOLD THE TEAMSTERS INTERNATIONAL LIABLE FOR THE DAMAGES 9402090026 940209 BUSINESS BRIEF WESTLAND GROUP PLC GKN BUYS WESTLAND STAKE FROM UNITED TECHNOLOGIES GKN PLC EXECUTED A DAWN RAID ON WESTLAND GROUP PLC IN WHAT MARKET OBSERVERS SAID COULD BE THE FIRST SALVO IN THE BATTLE FOR THE BRITISH HELICOPTER MAKER GKN A BRITISH AUTOMATIVEENGINEERING AND DEFENSE COMPANY INCREASED ITS 283 STAKE IN WESTLAND TO 47 BY BUYING THE 187 STAKE HELD BY UNITED TECHNOLOGIES CORP HARTFORD CONN UNITED TECHNOLOGIES SAID IT PAID ABOUT 40 MILLION FOR THE WESTLAND STAKE IN 1986 SELLING IT THIS WEEK FOR 111 MILLION GKN THEN ANNOUNCED A SUBSEQUENT BID FOR ALL OF WESTLAND'S SHARES AT 290 PENCE A SHARE THE BID VALUES WESTLAND AT 496 MILLION POUNDS 7353 MILLION AT THIS PRICE GKN IS BIDDING AT A DISCOUNT TO WESTLAND'S 305 PENCE CLOSING STOCK PRICE MONDAY GKN BELIEVES ITS LARGE STAKE GIVES IT A STRONG ENOUGH HAND TO JUSTIFY THE LOW BID PRICE BUT ANALYSTS BELIEVE GKN WILL BE FORCED TO PAY MORE TO WIN OVER SHAREHOLDERS WESTLAND TERSELY TERMED THE OFFER UNWELCOME TO HELP FUND THE ACQUISITION GKN LAUNCHED A ONEFORFIVE CONVERTIBLE LOAN RIGHTS OFFERING AT 480 PENCE A SHARE RAISING 248 MILLION POUNDS 9402090025 940209 TEXAS JOURNAL SOMETHING TO READ AS YOU FUME IN THE WAITING ROOM BY ROBERT TOMSHO AFTER MONTHS OF CONCENTRATING MOST OF ITS LOBBYING FIRE ON POLITICIANS THE TEXAS MEDICAL ASSOCIATION IS PLANNING TO MOVE THE HEALTHREFORM BATTLE INTO THE WAITING ROOMS OF ITS 30000 MEMBER PHYSICIANS ACROSS THE STATE THIS MONTH THE TMA WILL BEGIN MAILING DOCTORS PAMPHLETS DISCUSSING THE POSSIBLE IMPACT OF HEALTHCARE REFORM ON PHYSICIANPATIENT RELATIONSHIPS ASKING PATIENTS HOW MUCH THEY VALUE THE RIGHT TO CHOOSE THEIR OWN DOCTORS AND ENCOURAGING PATIENTS TO TALK TO THEIR DOCTORS ABOUT THEIR CONCERNS THE TMA WILL URGE PHYSICIANS TO PUT THE PAMPHLETS IN THEIR LOBBIES AND WAITING ROOMS THE MEDICAL ORGANIZATION ALSO WILL MAIL OUT LISTS OF TALKING POINTS FOR DOCTORS TO RAISE IN CONVERSATIONS WITH PATIENTS ALONG WITH REGULAR BACKGROUND PAPERS OUTLINING NEW PROPOSALS AND SHIFTS IN THE HEALTHCARE DEBATE IT'S AN INFORMATIONAL EXCHANGE NOTHING HEAVYHANDED SAYS LOU GOODMAN THE ASSOCIATION'S DIRECTOR OF MEDICAL ECONOMICS BUT AT A TIME WHEN THE HEALTHCARE DEBATE HAS BEEN DOMINATED BY PROPOSALS TO REDUCE PHYSICIANS' FEES AND ENCOURAGE THE SPREAD OF MANAGEDCARE NETWORKS THAT LIMIT PATIENT CHOICES MR GOODMAN ACKNOWLEDGES THAT THE CAMPAIGN IS ALSO DESIGNED TO STRENGTHEN AND MAINTAIN THE TRADITIONAL DOCTORPATIENT RELATIONSHIP 9402090024 940209 CALIFORNIA OUTLINES STANCE ON PRUDENTIAL SETTLEMENT NEW YORK CALIFORNIA'S SECURITIES COMMISSIONER WILL CONSIDER TEMPORARILY SUSPENDING PRUDENTIAL SECURITIES INC FROM DOING BUSINESS IN THE STATE IF THE FIRM DOESN'T AGREE TO A SETTLEMENT THAT HE CONSIDERS FAIR TO INVESTORS WHO BOUGHT ITS LIMITED PARTNERSHIPS IN THE 1980S WHAT I'M CONCERNED ABOUT IS THAT INVESTORS BE TREATED FAIRLY IN THE ARBITRATIONSETTLEMENT PROCESS GARY MENDOZA THE COMMISSIONER SAID IN AN INTERVIEW IF HIS OFFICE ISN'T SATISFIED MR MENDOZA SAID THE STATE WOULD GIVE SERIOUS CONSIDERATION TO AN APPROPRIATE ENFORCEMENT ACTION WHICH INCLUDES AN APPROPRIATE PERIOD OF SUSPENSION FROM DOING BUSINESS IN CALIFORNIA AMONG THE MR MENDOZA'S MOST SIGNIFICANT REQUESTS IS THAT PRUDENTIAL OFFER TO BUY BACK PARTNERSHIP INTERESTS FROM INVESTORS WHO SHOULDN'T HAVE BEEN SOLD THEM IN THE FIRST PLACE PEOPLE FAMILIAR WITH THE MATTER SAY MR MENDOZA DECLINED TO COMMENT ON THE SPECIFICS OF HIS TALKS WITH PRUDENTIAL WE'RE VERY CONCERNED ABOUT EVEN CONSIDERING THAT SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT WE'RE NOT IN THE BUSINESS OF INVESTING IN OIL AND GAS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA THE CALIFORNIA ACTION WAS FIRST REPORTED IN THE LOS ANGELES TIMES 9402090023 940209 TEXAS JOURNAL ECONOMIC FOCUS AT LONG LAST CONFIDENCE HAS COME BACK TO TEXAS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL THAT LEGENDARY TEXAS CONFIDENCE IS STARTING TO COME BACK BUT MINUS SOME OF THE SWAGGER AFTER A LONG SOJOURN IN THE DUMPS TEXANS ARE FINALLY FEELING REASONABLY GOOD ABOUT THE ECONOMY ACCORDING TO TWO SEPARATE MEASURES OF CONSUMER CONFIDENCE WITHIN THE PAST TWO MONTHS BOTH THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX AND A SURVEY BY VETERAN POLLSTER ALBERT E SINDLINGER INDICATE TEXANS MAY HAVE AT LAST EMERGED FROM A RECESSIONARY MINDSET THAT MAY COME AS A SURPRISE TO MANY SINCE TEXAS IS GENERALLY CONSIDERED TO HAVE BEATEN THE REST OF THE NATION OUT OF THE 19901991 RECESSION AND SINCE THE STATE HAS FOR SOME TIME BEEN GENERATING SOME OF THE BEST JOBGROWTH AND HOUSINGSTARTS FIGURES ANYWHERE BUT ANALYSTS SAY TEXANS HAVE BEEN SLOW TO RETURN TO OPTIMISM MOSTLY BECAUSE THEY'RE STILL SMARTING FROM THE ECONOMIC DEBACLE OF THE MID1980S WHAT'S MORE OIL PRICES REMAIN SEVERELY DEPRESSED AND RECENT GROWTH WHILE IMPRESSIVE STILL DOESN'T APPROACH THE SORT OF EXPANSION THAT TEXANS HAD AT ONE TIME COME TO EXPECT FINALLY CORPORATE LAYOFFS PARTICULARLY IN THE DEFENSE INDUSTRY CONTINUE TO TAKE THEIR TOLL TRACKING SUCH MOOD SWINGS IS SOMETIMES MORE ART THAN SCIENCE BUT THE NEW YORKBASED CONFERENCE BOARD A NONPROFIT RESEARCH ORGANIZATION FINANCED BY BUSINESS DONATIONS HAS BEEN AT IT LONG ENOUGH TO DEVELOP A SIZABLE FOLLOWING AMONG ECONOMISTS AND POLICY MAKERS THE METHODOLOGY IS SIMPLE EACH MONTH INTERVIEWERS ASK 5000 CONSUMERS FIVE BASIC QUESTIONS ARE BUSINESS CONDITIONS GOOD BAD OR NORMAL AT PRESENT ARE JOBS PLENTIFUL NOT SO PLENTIFUL OR HARD TO GET IN THE NEXT SIX MONTHS HOW WILL BUSINESS CONDITIONS AND JOBS FARE WILL YOUR FAMILY'S INCOME BE HIGHER LOWER OR THE SAME IN SIX MONTHS THE RESULTS COMPILED IN INDEX FORM HAVE OFTEN SHOWN SIGNIFICANT DIFFERENCES BETWEEN THE US AS A WHOLE AND THE TEXAS AREA WHICH ALSO INCLUDES LOUISIANA OKLAHOMA AND ARKANSAS IN THE EARLY 1980S WHEN THE REST OF THE US WAS CAUGHT IN THE GRIP OF RECESSION TEXANS WERE RIDING A WAVE OF OILINDUCED OPTIMISM IN DECEMBER 1981 FOR INSTANCE THE TEXASAREA READING STOOD AT 1133 COMPARED WITH 666 FOR THE NATION AS A WHOLE BY DECEMBER OF 1986 THE OIL CRASH REVERSED THE SITUATION PUTTING THE US AT 932 AND TEXAS AT 562 THE CONFERENCE BOARD TYPICALLY CONSIDERS ANY NUMBER BETWEEN 80 AND 100 TO BE A SIGN OF A HEALTHY BUT NOT SPECTACULAR ECONOMY UNDER 80 USUALLY SIGNIFIES A SLUGGISH OR RECESSIONARY ECONOMY WHILE OVER 100 MEANS A BOOM SINCE 1991 CONSUMERS IN THE US AND IN TEXAS HAVE BEEN PRETTY MUCH EQUALLY MOROSE SHOWING AVERAGE READINGS UNDER 70 BUT THE PSYCHES IN BOTH AREAS APPEAR TO BE ON THE MEND AT LONG LAST IN JANUARY THE US READING HIT 832 UP 34 POINTS FROM DECEMBER WHILE THE TEXASAREA JUMPED 114 POINTS TO 848 ALTHOUGH ANALYSTS CAUTION AGAINST PLACING TOO MUCH EMPHASIS ON ONE MONTH'S FIGURES THE NUMBERS DO INDICATE THAT THE INCREASE IN TEXANS' CONFIDENCE MAY HAVE STAYING POWER A YEAR AGO CONSUMERS WERE OVERTHETOP OPTIMISTIC ABOUT THE FUTURE BUT CAUTIOUS ABOUT THEIR CURRENT CIRCUMSTANCES NOW RESPONDENTS SAY THEIR CURRENT SITUATION LOOKS PRETTY ROSY AS DO THEIR EXPECTATIONS I THINK THE UPTURN IS MORE SUSTAINABLE THAN A TEMPORARY SURGE A YEAR EARLIER SAYS JASON BRAM A CONFERENCE BOARD ECONOMIST IT'S BASED MORE ON FUNDAMENTAL ISSUES THINGS LIKE THE JOB MARKET PICKING UP MORE EVIDENCE OF IMPROVING CONSUMER CONFIDENCE COMES FROM MR SINDLINGER AN 87YEAROLD CONSULTANT WHOSE WALLINGFORD PA FIRM HAS BEEN TAKING AMERICA'S PULSE REGULARLY SINCE 1948 MR SINDLINGER'S APPROACH ALSO INVOLVES TELEPHONE INTERVIEWS TO MEASURE WHAT HE CALLS HOUSEHOLD LIQUIDITY FOR A RESPONDENT TO HAVE POSITIVE HOUSEHOLD LIQUIDITY HE OR SHE MUST BE ABLE TO SAY THAT TOTAL ANNUAL HOUSEHOLD INCOME IS AT LEAST EQUAL TO WHAT IT WAS SIX MONTHS AGO THAT TOTAL HOUSEHOLD INCOME WILL BE THE SAME OR UP FROM NOW IN THE NEXT SIX MONTHS THAT IN THE NEXT SIX MONTHS THERE WILL BE AT LEAST THE SAME NUMBER OF JOBS IN THE AREA AND THAT BUSINESS CONDITIONS IN THE NEXT SIX MONTHS WILL BE THE SAME OR BETTER BY HIS DEFINITION AN AREA IN WHICH FEWER THAN 26 OF HOUSEHOLD HEADS REPORT POSITIVE LIQUIDITY IS IN A DEPRESSION BETWEEN 26 AND 299 INDICATES A BORDERLINE DEPRESSION 30 TO 499 SIGNALS A RECESSION AND 50 OR ABOVE IS A SIGN OF A HEALTHY ECONOMY BEFORE 1982 TEXAS TENDED TO FAR SURPASS THE REST OF THE COUNTRY TURNING IN NUMBERS IN THE 60 AND 70 RANGE THROUGH THE DARK YEARS OF THE '80S TEXAS DIPPED INTO THE 30 RANGE YOU WERE DOWN PRETTY LOW FOR TEXAS MR SINDLINGER SAYS I MEAN TEXAS HAS NEVER EXPERIENCED ANYTHING BAD SINCE THE ALAMO IN THE '90S THOUGH THE TREND HAS BEEN UP AND TEXAS HAS GENERALLY RANGED ABOUT 10 POINTS ABOVE THE US AVERAGE IN DECEMBER FOR THE FIRST TIME SINCE JANUARY OF 1990 TEXAS FINALLY CRACKED THE 50 MARK BY JANUARY POSITIVE HOUSEHOLD LIQUIDITY HAD REACHED 530 BY CONTRAST THE US AVERAGE WAS STILL 379 FIRMLY IN RECESSION TERRITORY A CONCLUSION DISPUTED BY MOST ECONOMISTS ONE STATE CALIFORNIA WAS IN A DEPRESSION AND EIGHT OTHER THAN TEXAS WERE CONSIDERED HEALTHY WYOMING IDAHO NEVADA MONTANA COLORADO UTAH NEW MEXICO AND ARIZONA 9402090022 940209 TEXAS JOURNAL FUND SEES PROMISE IN BLEAK BORDERLAND BY TARA PARKER POPE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE BLEAK CONDITIONS OF THE TEXAS BORDER COLONIAS AN 850 MILLION PENSION FUND SEES PROMISE AND PROFIT THIS MONTH THE WASHINGTONBASED AFLCIO HOUSING INVESTMENT TRUST WHICH MANAGES INVESTMENTS FOR 350 MEMBER PENSION FUNDS IS EXPECTED TO SELECT THREE TEST SITES ALONG THE TEXAS BORDER WHERE IT PLANS TO BUILD 300 UNITS OF AFFORDABLE HOUSING THE EFFORT IS THE FIRST STEP IN A PLANNED 150 MILLION FEDERAL STATE AND PRIVATE INITIATIVE AIMED AT CLEANING UP THE ENCLAVES OF SUBSTANDARD HOUSING ALONG THE BORDER ALSO UNDER THE INITIATIVE TEXAS WOULD BECOME ONE OF THE FIRST STATES TO TEST A NEW FEDERAL PROGRAM AIMED AT ENCOURAGING PENSION FUNDS TO INVEST IN LOWINCOME HOUSING BUT OF EVEN MORE IMPORTANCE TO BORDER COMMUNITIES THE INITIATIVE REPRESENTS A CONCERTED EFFORT TO TACKLE THE PROBLEMS OF THE ESTIMATED 300000 COLONIA RESIDENTS MOSTLY IMPOVERISHED IMMIGRANTS FROM MEXICO AFTER YEARS OF JUST TALKING ABOUT THEM WE THINK IT CAN DEMONSTRATE TO PENSION FUNDS THAT YOU CAN DO THIS KIND OF LENDING IN A SAFE SECURE PRUDENT WAY AND BE CONTRIBUTING TOWARD THE CREATION OF VERY DESPERATELY NEEDED AFFORDABLE HOUSING SAYS JIM CAMPBELL WHO OVERSEES AFFORDABLE HOUSING INVESTMENTS FOR THE TRUST THE AFLCIO TRUST IS EXPECTED TO CONTRIBUTE 50 MILLION TOWARD LOWINCOME HOUSING EFFORTS IN THE COLONIAS IN ADDITION THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HAS PROMISED 15 MILLION THE FIRST 7 MILLION OF WHICH WILL BE AVAILABLE IN MARCH AND THE FEDERAL NATIONAL MORTAGE ASSOCIATION HAS PLEDGED 20 MILLION IN LOAN PURCHASES TEXAS HOUSING OFFICIALS ALSO HOPE TO COURT AN ADDITIONAL 35 MILLION IN LOANS FROM PRIVATE LENDERS BUT TEXAS HOUSING OFFICIALS GOT BAD NEWS THIS WEEK WHEN THEY LEARNED THE CLINTON ADMINISTRATION'S BUDGET INCLUDED 100 MILLION FOR COLONIAS ASSISTANCE IN FOUR STATES ALTHOUGH THAT IS A BOOST TO EFFORTS TO INVEST IN THE COLONIAS TEXAS HOUSING OFFICIALS WERE EXPECTING 200 MILLION AS A RESULT A REQUEST FOR 60 MILLION IN HOUSING AND URBAN DEVELOPMENT FUNDS IS EXPECTED TO BE SCALED BACK TO ABOUT 30 MILLION THIS MONTH THE AFLCIO TRUST WILL SELECT THREE SITES IN THE EL PASO LAREDO AND BROWNSVILLE/EDINBERG AREAS STATE HOUSING OFFICIALS SAY THEY HOPE EVENTUALLY TO INVEST IN OR AROUND 24 COLONIA SITES USING THE FIRST THREE PROJECTS AS MODELS ALTHOUGH INVESTMENT IN LOWINCOME HOUSING AND DISTRESSED AREAS WOULD SEEM HIGH RISK FOR A PENSION FUND OFFICIALS SAY PUBLIC SUBSIDY AND GOVERNMENT GUARANTEES AVAILABLE FOR AFFORDABLE HOUSING PROJECTS OFTEN MAKE THEM A BETTER INVESTMENT THAN TRADITIONAL LOANS ONE POSSIBLE PLAN FOR A 100UNIT COLONIA DEVELOPMENT USES STATE FUNDS TO PURCHASE LAND AND INFRASTRUCTURE HUD WOULD SUBSIDIZE ABOUT 50 OF THE HOME COST A PRIVATE LENDER WOULD MAKE A BLANKET LOAN FOR THE REMAINING MORTGAGES ABOUT 20000 OR 30000 A UNIT THAT AMOUNT WOULD BE GUARANTEED AND SECURITIZED BY FANNIE MAE AND THE AFLCIO TRUST WOULD PURCHASE THE SECURITIES IN A PRIVATE PLACEMENT THEN A LOWINCOME HOME BUYER WOULD REPAY HIS SHARE OF THE BLANKET LOAN AT A RATE OF ABOUT 150 TO 200 A MONTH FOR 10 OR 15 YEARS WHAT'S UNIQUE ABOUT THIS PLAN IS THAT IT USES RENTAL ASSISTANCE FUNDS TO ULTIMATELY ALLOW THE BENEFICIARY TO OWN THE HOME IN ADDITION WITHOUT THE AFLCIO AS A GUARANTEED BUYER OF THE MORTAGEBACKED SECURITY IT'S UNLIKELY THE PRIVATE LENDER OR FANNIE MAE WOULD BACK THE DEAL UNDER THAT SCENARIO THE TRUST COULD EARN A 7 TO 8 RATE OF RETURN DEPENDING ON MARKET RATES THE TRUST HAS A ONEYEAR AND THREEYEAR RATE OF RETURN OF 104 AND 1124 RESPECTIVELY STATE AND FEDERAL HOUSING OFFICIALS ARE HOPING THE COLONIAS PROGRAM WILL CONVINCE MORE PRIVATESECTOR LENDERS TO GET INVOLVED IN AFFORDABLE HOUSING WE'RE TRYING TO REEDUCATE THE LENDING COMMUNITY SAYS HENRY FLORES EXECUTIVE DIRECTOR OF THE STATE HOUSING AGENCY BUT EVEN WITH MASSIVE PRIVATE INVESTMENT STATE AND FEDERAL HOUSING OFFICIALS CONCEDE IT WILL BE DIFFICULT TO PUT A DENT IN THE PROBLEM THE COLONIAS HAVE SPROUTED UP ALONG THE BORDER AS DEVELOPERS HAVE SOLD PLOTS OF LAND TO LOWINCOME RESIDENTS FOR AS LITTLE AS 99 DOWN MOST OF THESE SUBDIVISIONS HAVE NO WATER OR SEWAGE SERVICE RESIDENTS RESORT TO USING OUTHOUSES ILLEGAL WELLS AND SEPTIC TANKS WHICH IN MOST CASES ARE SET SO CLOSE TOGETHER THAT WHAT AVAILABLE WATER THERE IS BECOMES CONTAMINATED COLONIAS ARE DOTTED WITH HOUSES IN VARIOUS STAGES OF CONSTRUCTION SOME LOTS HAVE ONLY POURED FOUNDATIONS OTHERS HAVE HOUSES WITH ONLY TWO OR THREE WALLS WHILE THE FAMILY SLEEPS IN A NEARBY SHACK OR TRAILER RESIDENTS HERE TEND TO BUILD THEIR HOMES FROM PAYCHECK TO PAYCHECK THE FINANCIAL STRUCTURE OF THE COLONIAS MAKES IT DIFFICULT TO USE PUBLIC DOLLARS TO SOLVE THE PROBLEM MOST OF THE RESIDENTS WHO THINK THEY OWN THEIR LAND REALLY HAVE ONLY A CONTRACT FOR DEED A HIGHINTEREST RENTTOOWN AGREEMENT WITH HARSH LATEPAYMENT TERMS HOUSING OFFICIALS SAY AFTER ONE OR TWO LATE PAYMENTS A RESIDENT CAN LOSE THE LAND ALONG WITH ANY PROPERTY IMPROVEMENTS BECAUSE MOST RESIDENTS LACK CLEAR TITLE TO THE PROPERTY MOST PUBLIC AND NONPROFIT HOUSING GROUPS DON'T WANT TO INVEST IN THE COLONIAS FOR FEAR ANY IMPROVEMENTS WILL REVERT TO THE ORIGINAL OWNER SOME OF THE AFLCIO TRUST AND OTHER HOUSING FUNDS WILL BE SPENT ON DEVELOPING NEW HOMES ADJACENT TO AN EXISTING COLONIA TO AT LEAST RELIEVE OVERCROWDING HOUSING OFFICIALS SAY THEY WILL ALSO CONSIDER USING THE FUNDS TO HELP RESIDENTS WIN CLEAR TITLE TO THEIR PROPERTY TO BRING IN WATER AND SEWER INFRASTRUCTURE AND TO REBUILD SOME OF THE EXISTING COLONIA HOMES MR FLORES SAYS HE IS WORKING ON RECOMMENDATIONS FOR STATE LEGISLATORS NEXT YEAR TO DEAL WITH TITLE ISSUES AFFECTING THE COLONIAS ADDITIONAL FUNDS FOR THE COLONIAS ALSO ARE EXPECTED TO BECOME AVAILABLE FROM THE FARMERS HOME ADMINISTRATION LATER THIS YEAR AND FANNIE MAE IS LOOKING FOR OTHER WAYS THE MORTGAGE FINANCING AGENCY CAN AID THE COLONIAS EFFORT 9402090021 940209 BUSINESS BRIEF FORD MOTOR CO COMPANY TO STOP SELLING MERCURY CAPRI CONVERTIBLE FORD MOTOR CO SAID IT WILL STOP SELLING ITS MERCURY CAPRI CONVERTIBLE IN THE US THIS FALL BECAUSE OF DECLINING SALES FORD OF AUSTRALIA WHICH MAKES THE MERCURY CAPRI AT ITS BROADMEADOWS ASSEMBLY PLANT NEAR MELBOURNE WILL CEASE CAPRI PRODUCTION IN MAY THE VEHICLES WILL BE AVAILABLE THROUGH THE 1994 MODEL YEAR WHICH ENDS IN SEPTEMBER SINCE THE INTRODUCTION OF THE CAPRI IN 1990 US SALES IN THE CONVERTIBLE SEGMENT WHERE MERCURY CAPRI COMPETES HAVE DECLINED RESULTING IN THIS DECISION SAID KEITH MAGEE VICE PRESIDENT AND GENERAL MANAGER OF THE LINCOLNMERCURY DIVISION FORD SOLD 9723 CAPRIS IN 1993 DOWN 225 FROM THE 12557 SOLD IN 1992 LINCOLNMERCURY SAID ITS DEALERS WILL CONTINUE TO SERVICE CAPRIS IN THE US 9402090020 940209 MARKETING & MEDIA FCC EXTENDS UNTIL MAY 15 CABLETV REVENUE FREEZE WASHINGTON AP THE FEDERAL COMMUNICATIONS COMMISSION IS EXTENDING THE FREEZE ON CABLETV REVENUE TO MAY 15 WHILE IT CONDUCTS A REVIEW OF PRICES CHARGED FOR SERVICE A REVENUE FREEZE IMPOSED LAST YEAR DURING IMPLEMENTATION OF NEW RULES WAS DUE TO EXPIRE TUESDAY BUT AN OUTCRY LAST FALL OVER CHANGES IN HOW CABLE COMPANIES BILL CUSTOMERS WHICH RESULTED IN ALLEGATIONS THAT MANY PEOPLE RECEIVED HIGHER BILLS LED THE AGENCY TO RECONSIDER ITS RATE RULES THE AGENCY IS EXPECTED TO REVIEW ITS RULES THIS MONTH AND OFFICIALS SAID EXTENDING THE FREEZE WOULD MAKE IT EASIER TO IMPLEMENT ANY NEW REGULATIONS MEANWHILE COMMUNITIES ARE IN THE PROCESS OF CERTIFYING LOCAL CABLE COMPANIES AS MONOPOLIES A PROCESS THAT PERMITS THEM TO REGULATE BASIC CABLE SERVICE FCC OFFICIALS SAID THE FREEZE ALSO EXTENDS THE TIME FOR COMMUNITIES TO ACT 9402090019 940209 BUSINESS BRIEF ORANGE & ROCKLAND UTILITIES INC COMPANY FILES CIVIL SUIT AGAINST ITS EXCHAIRMAN ORANGE & ROCKLAND UTILITIES INC FILED SUIT AGAINST JAMES F SMITH ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN STATE SUPREME COURT IN ROCKLAND COUNTY NY CLAIMING HE MISAPPROPRIATED FUNDS AND FAILED TO PROPERLY SUPERVISE CORPORATE AFFAIRS BASED IN PEARL RIVER NY THE UTILITY WHICH DISMISSED MR SMITH ON OCT 7 FOR CAUSE IS SEEKING AT LEAST 5 MILLION IN DAMAGES FROM THE CIVIL ACTION MR SMITH IN TUXEDO PARK NY COULD NOT BE REACHED FOR COMMENT MR SMITH'S DISMISSAL STEMMED FROM QUESTIONABLE FINANCIAL AND POLITICAL DEALINGS AT THE UTILITY STATE REGULATORS WITH THE COOPERATION OF THE UTILITY ARE CONTINUING A PROBE 9402090018 940209 BUSINESS BRIEF GREYHOUND LINES INC DALLAS BUS CARRIER REPORTS 4THPERIOD LOSS FARES CITED DISCOUNT FARES DROVE GREYHOUND LINES INC TO A DEEPERTHANEXPECTED LOSS IN THE FOURTH QUARTER OF 1993 AS THE BUS CARRIER TRIED TO REVERSE A DECLINE IN PASSENGER TRAFFIC THE DALLAS COMPANY REPORTED A NET LOSS OF 64 MILLION OR 44 CENTS A SHARE COMPARED WITH EARNINGS OF 53 MILLION OR 53 CENTS A SHARE A YEAR EARLIER REVENUE FELL 75 TO 1551 MILLION FROM 1677 MILLION FOR THE YEAR GREYHOUND POSTED PROFIT OF JUST 75 MILLION OR 57 CENTS A SHARE IN 1992 GREYHOUND EARNED 109 MILLION OR 110 A SHARE REVENUE DECLINED NEARLY 4 TO 6665 MILLION FROM 693 MILLION THE 1993 RESULTS WERE VERY DISAPPOINTING SAID FRANK J SCHMIEDER CHIEF EXECUTIVE AND PRESIDENT HE ATTRIBUTED THE DISAPPOINTMENT TO SLUGGISHNESS IN THE TRAVEL INDUSTRY BAD WINTER WEATHER AND PROBLEMS IN THE THIRD QUARTER WITH A NEW RESERVATION SYSTEM AND TELEPHONE SERVICE 9402090017 940209 BUSINESS BRIEF KANSAS CITY SOUTHERN INDUSTRIES INC FIRM STUDIES WAYS TO BOOST HOLDER VALUE STOCK SURGES KANSAS CITY SOUTHERN INDUSTRIES INC SHARES CLIMBED SHARPLY AFTER THE COMPANY SAID IT IS STUDYING STRATEGIC OPTIONS THAT MIGHT INCREASE STOCKHOLDER VALUE THE KANSAS CITY MO HOLDING COMPANY SAID ITS BOARD HAS RETAINED OUTSIDE CONSULTANTS AND AN INVESTMENT BANKER TO HELP IT ANALYZE A WIDE RANGE OF ALTERNATIVES RANGING FROM OPERATIONAL IMPROVEMENTS TO ASSET REDEPLOYMENTS THE COMPANY DIDN'T DISCLOSE THE IDENTITY OF THE CONSULTANTS WHO AN OFFICIAL SAID HAVE BEEN INSTRUCTED THAT NOTHING IS SACRED TRADING IN KANSAS CITY SOUTHERN SHARES WAS HALTED BRIEFLY IN MIDSESSION PENDING THE COMPANY'S DISCLOSURE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES CLOSED AT 48875 UP 350 OR 77 9402090016 940209 LAW LEGAL BEAT PUNITIVEDAMAGE AWARDS CURBED IN TEXAS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL THE SUPREME COURT OF TEXAS PUT NEW RESTRICTIONS ON PUNITIVEDAMAGE AWARDS IN A DECISION THAT SEEMS TO REFLECT THE COURT'S GROWING EFFORT TO MODERATE THE STATE'S REPUTATION AS A PLAINTIFFS' HAVEN THE DECISION BY TEXAS'S HIGHEST COURT MAKES IT MUCH MORE DIFFICULT FOR POLICYHOLDERS TO WIN PUNITIVE DAMAGES AGAINST INSURERS FOR FAILING TO PAY CLAIMS ON A TIMELY BASIS THE DECISION ALSO ADDS A NUMBER OF PROCEDURAL SAFEGUARDS FOR DEFENDANTS THAT AFFECT ALL CASES IN WHICH PUNITIVE DAMAGES ARE AN ISSUE IT IS A SEA CHANGE FOR THE COURT SAID CHARLES I HADDEN A WASHINGTON LAWYER FOR TRANSPORTATION INSURANCE CO A DALLAS SUBSIDIARY OF CNA INSURANCE COS WHICH WAS THE DEFENDANT IN THE CASE MR HADDEN OF ROSS DIXON & MASBACK PREDICTED THE DECISION BOTH WOULD MAKE IT HARDER FOR PLAINTIFFS TO WIN PUNITIVE DAMAGES AND WOULD REVERSE A TENDENCY OF TEXAS COURTS TO UPHOLD SUCH AWARDS ON APPEAL THE CASE INVOLVED A WORKER IN A BUILDINGPRODUCTS STORE IN EL PASO WHO WAS INJURED IN 1986 WHEN A STACK OF COUNTER TOPS FELL ON HIM BREAKING HIS PELVIS THE MAN OBTAINED A SETTLEMENT FROM TRANSPORTATION INSURANCE HIS WORKERS' COMPENSATION INSURER BUT THEN SUED THE INSURER FOR BAD FAITH CLAIMING IT WAS GROSSLY NEGLIGENT IN TAKING MORE THAN TWO YEARS TO PAY HIS MEDICAL BILLS A JURY AWARDED THE MAN 1000 TO COMPENSATE FOR MONETARY LOSSES 100000 FOR MENTAL ANGUISH AND 1 MILLION IN PUNITIVE DAMAGES THE VERDICT WAS UPHELD ON APPEAL BUT THE STATE SUPREME COURT ORDERED A NEW TRIAL SAYING THE STANDARD FOR GROSS NEGLIGENCE THAT THE LOWER COURTS HAD USED IN ORDER TO AWARD PUNITIVE DAMAGES WAS TOO FAVORABLE TO PLAINTIFFS SINCE 1981 PLAINTIFFS IN TEXAS HAVE BEEN ABLE TO WIN SUCH CASES ESSENTIALLY BY SHOWING SOME CARELESSNESS ON BEHALF OF THE DEFENDANTS IN REFUSING TO PAY REGARDLESS OF THE EXTENT OF INJURY IN ITS DECISION HOWEVER THE COURT TOUGHENED THE REQUIREMENT HOLDING THAT PLAINTIFFS MUST SHOW THAT THE DEFENDANTS HAD A CONSCIOUS INDIFFERENCE TOWARD PAYMENT AND KNEW THAT THEIR ACTIONS WOULD RESULT IN EXTRAORDINARY HARM SUCH AS DEATH GRIEVOUS PHYSICAL INJURY OR A GENUINE LIKELIHOOD OF FINANCIAL CATASTROPHE ACCORDING TO THE OPINION KIT BRAMBLETT AN EL PASO LAWYER WHO REPRESENTED THE PLAINTIFF IN THE CASE SAID THE DECISION EFFECTIVELY KILLS THE POSSIBILITY OF PUNITIVEDAMAGE AWARDS IN INSURANCE BADFAITH CASES IT IS AS IF TO BORROW A PHRASE FROM WILL ROGERS THIS MAJORITY NEVER MET AN INSURANCE COMPANY IT DIDN'T LIKE ONE OF THE TEXAS JUSTICES LLOYD DOGGETT ADDED IN A DISSENTING OPINION TO THE COURT'S 72 RULING THE PROCEDURAL SAFEGUARDS THAT THE COURT ORDERED INCLUDE A REQUIREMENT THAT LOWER COURTS HOLD A SEPARATE TRIAL ON THE QUESTION OF PUNITIVE DAMAGES ONCE THE ISSUE OF LIABILITY HAS BEEN DECIDED AND THAT APPELLATE COURTS LAY OUT THEIR REASONS FOR UPHOLDING SUCH AWARDS ON APPEAL THE COURT SAID THE CHANGES WERE AN ATTEMPT TO BRING TEXAS LAW IN CONFORMITY WITH RECENT DECISIONS OF THE US SUPREME COURT ON PUNITIVE DAMAGES THE DECISION IS THE LATEST PRONOUNCEMENT BY THE TEXAS COURT IN RECENT MONTHS TO LIMIT PUNITIVEDAMAGE CLAIMS AND OTHER KINDS OF SUITS THE COURT HAS HELD FOR INSTANCE THAT A WALMART STORE COULD NOT BE HELD LIABLE FOR PUNITIVE DAMAGES IN THE CASE OF A WOMAN WHO HAD FALLEN AND BROKEN HER HIP ON THE SIDEWALK OUTSIDE THE STORE THE COURT ALSO RECENTLY HELD THAT UNLIKE OTHER STATES TEXAS DOESN'T RECOGNIZE THE TORT OF NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS IN A CASE INVOLVING A WOMAN WHO SUED HER FORMER LOVER FOR VIDEOTAPING THEIR SEXUAL ENCOUNTERS TRADECENTER UPDATE PROSECUTORS IN THE WORLD TRADE CENTER BOMBING TRIAL TOLD JUDGE KEVIN T DUFFY THAT THEY HAD CONCLUDED THE PRESENTATION OF THEIR CASE AFTER FOUR MONTHS OF TESTIMONY BY SOME 207 WITNESSES THE 16WEEKOLD TRIAL IN FEDERAL COURT IN NEW YORK WILL NOW SHIFT ITS FOCUS TO THE FOUR DEFENDANTS THEY EACH ARE EXPECTED TO PRESENT VERY BRIEF DEFENSES POSSIBLY ENABLING JUDGE DUFFY TO SEND THE CASE TO THE JURY AS EARLY AS THE END OF NEXT WEEK THE DEFENDANTS ARE CHARGED WITH CONSPIRACY IN THE BLAST THAT DESTROYED PORTIONS OF THE SKYSCRAPER AND KILLED SIX PEOPLE LAST FEB 9402090015 940209 ITT SEEN AS LEADER IN BIDDING CONTEST FOR ITALY'S CIGA BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP HAS EMERGED AS THE FAVORED CANDIDATE IN THE BIDDING WAR FOR CIGA SPA AN ITALIAN LUXURYHOTEL CHAIN WITH 35 HOTELS AND MORE THAN 5500 ROOMS THROUGHOUT EUROPE ACCORDING TO PEOPLE CLOSE TO THE BIDDING MEDIOBANCA A MILAN MERCHANT BANK ACTING AS AN AGENT FOR CIGA'S CREDITORS RECOMMENDED THAT BANKS ACCEPT ITT'S APPROXIMATELY 900 BILLION LIRE 5305 MILLION CASH BID A BID FROM BRITISH HOTEL GROUP FORTE PLC WHICH HAD THE BACKING OF US FINANCIER GEORGE SOROS'S QUANTUM FUND APPARENTLY CAME IN AT ABOUT 800 BILLION LIRE HOST MARRIOTT CORP WASHINGTON DC WAS AMONG THE OTHER BIDDERS ITT DECLINED TO COMMENT ON THE NEWS BUT WALL STREET ANALYSTS SAID THE MOVE WOULD BETTER POSITION THE CONGLOMERATE TO SPIN OFF ITS ITT SHERATON HOTEL CHAIN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITT SHARES CLOSED AT 99625 UP 2 FORTE SAID THE SHERATON BID WAS CONSIDERABLY HIGHER THAN ITS OWN AND THAT THE GROUP DIDN'T PLAN TO RAISE ITS BID BUT PEOPLE CLOSE TO THE TALKS SAID THEY DIDN'T RULE OUT A COUNTEROFFER FROM THE BRITISH GROUP SHERATON'S CASH OFFER WOULD PERMIT CIGA TO RECOUP MORE THAN 70 OF ITS DEBTS ACCORDING TO ITALIAN NEWS REPORTS CIGA WENT INTO DEFAULT ON ITS LOANS LAST YEAR AND ITS SHARES WERE SUSPENDED FROM THE MILAN STOCK EXCHANGE CIGA WHICH WAS DEVELOPED BY THE AGA KHAN BEFORE CREDITOR BANKS TOOK CHARGE LAST YEAR IS CONSIDERED ONE OF ITALY'S PREMIER LUXURY HOTEL CHAINS AND INCLUDES THE PRESTIGIOUS DANIELI IN VENICE THE GRAND HOTEL IN ROME AND THE PALACE IN MADRID INDUSTRY OBSERVERS SAID THE PURCHASE WOULD SUBSTANTIALLY BOOST SHERATON'S VISIBILITY OVERSEAS BUT NOTED THAT HIGHEND CHAINS ARE EXPENSIVE TO OPERATE AND THE EUROPEAN HOTEL MARKET AS A WHOLE CONTINUES TO SHOW SOME WEAKNESS 9402090014 940209 WHO'S NEWS KIMBALL INTERNATIONAL INC KIMBALL INTERNATIONAL INC JASPER IND CHRISTINE M VUJOVICH VICE PRESIDENT PRODUCT PLANNING AND ENVIRONMENTAL MANAGEMENT OF CUMMINS ENGINES CO WAS NAMED A DIRECTOR OF THIS MAKER OF FURNITURE PIANOS AND PROCESSED WOOD PRODUCTS SHE SUCCEEDS PATRICIA H SNYDER WHO RETIRED 9402090013 940209 S&P SAYS REGULATORS TOOK 47 ACTIONS IN '93 AGAINST US INSURERS NEW YORK STANDARD & POOR'S CORP SAID FINANCIAL REGULATORS TOOK 47 ACTIONS AGAINST US INSURERS IN 1993 DOWN FROM 68 A YEAR EARLIER S&P'S INSURANCE RATING SERVICE SAID THE REDUCTION REFLECTS REDUCED BUT STILL HIGH PROPERTY CATASTROPHE LOSSES BETTER QUALITY LIFE INSURER INVESTMENT PORTFOLIOS AND REASONABLY STRONG AFTERTAX EARNINGS THE S&P TALLY SAID REGULATORS SHUT DOWN 17 LIFE/HEALTH INSURERS WITH ABOUT 13 BILLION IN LIABILITIES LAST YEAR THE LOWEST TOTAL SINCE 1986 WHEN 16 INSURERS FAILED INSURERS WERE AIDED BY A RISING STOCK MARKET SUBSTANTIAL FUNDS PAID BY OWNERS GENERALLY FAVORABLE HEALTH INSURANCE MARKET CONDITIONS AND RENEWED CONSUMER INTEREST IN TAXDEFERRED LIFE AND ANNUITY PRODUCTS IN ADDITION MANY COMPANIES RESTRUCTURED THEIR PORTFOLIOS PRIMARILY DIVESTING JUNK BONDS LOOKING FORWARD STEVEN DREYER DIRECTOR OF INSURANCE RATINGS SERVICES SAID HEALTH INSURANCE PROFITS WILL PROBABLY BE SQUEEZED BY CYCLICAL AND POLITICAL PRESSURES AND ANY SIGNIFICANT RISE IN INTEREST RATES WOULD HAVE AN ADVERSE IMPACT THIRTY PROPERTY/CASUALTY INSURERS WITH LIABILITIES OF MORE THAN 300 MILLION FAILED IN 1993 THE FEWEST NUMBER SINCE 1987 WHEN 19 WERE TAKEN OVER BY REGULATORS DESPITE SUCH CATASTROPHIC CLAIMS AS THE WORLD TRADE CENTER BOMBING THE MARCH NORTH EASTERN STORM CALIFORNIA FIRES AND MIDWEST FLOODS THERE WAS NO RASH OF INSOLVENCIES AS THERE WAS FOLLOWING HURRICANE ANDREW IN 1992 THE ANALYSIS SAID THE CAPITAL POSITION OF THE PROPERTY/CASUALTY INDUSTRY IMPROVED IN 1993 THANKS TO LOWER UNDERWRITING LOSSES AND CONTINUED HIGH LEVELS OF REALIZED AND UNREALIZED CAPITAL GAINS 9402090011 940209 WORLD STOCK MARKETS JAPAN'S PLAN FOR ECONOMY POSES RIDDLES BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HOW DO YOU MAKE MONEY FROM JAPAN'S HUGE NEW ECONOMICSTIMULUS PACKAGE JAPANESE STOCKS WHICH GOT A BROAD BOOST FROM THE 140 BILLION STIMULUS PROGRAM UNVEILED BY THE GOVERNMENT TUESDAY HAVE RALLIED 16 THIS YEAR ON HOPES OF AN ECONOMIC RECOVERY NOW INVESTORS ARE SCRAMBLING TO INTERPRET WHAT THE NEW MEASURES REALLY MEAN FOR STOCKS AND WHICH WILL BE THE LIKELY WINNERS AND LOSERS IT'S NOT SUCH AN EASY TASK THIS TIME AROUND THE LATEST POLICIES ARE MORE AMBITIOUS THAN ANY OF THE GOVERNMENT'S THREE PREVIOUS ATTEMPTS TO PRIME THE ECONOMY DURING THE PAST 17 MONTHS THE MEASURES FEATURE NOT ONLY CONVENTIONAL PUBLICWORKS SPENDING BUT ALSO NEW INITIATIVES IN DEREGULATION AND SOME 56 BILLION IN TAX CUTS TO PROD RELUCTANT CONSUMERS THIS DEPARTURE FROM JAPAN'S OLD APPROACH TO PUMPPRIMING WHICH SIMPLY THREW A LOT OF MONEY AT GIANT PROJECTS SUCH AS BULLET TRAINS AND NEW HIGHWAYS COMPLICATES THE PICTURE FOR INVESTORS NO LONGER CAN THEY RELY ON THE OLD STRATEGY OF SIMPLY LOADING UP ON A FEW BIG CONSTRUCTION STOCKS TO PROFIT FROM THE GOVERNMENT'S LARGESS WHILE THIS PACKAGE DOES INCLUDE SOME OLDSTYLE PUBLICWORKS SPENDING A LARGE PART OF THE MONEY IS GOING STRAIGHT TO INDIVIDUALS' POCKETS THIS RECOVERY WILL BE THREEPRONGED HIGHER PURCHASING POWER NEWSTYLE PUBLIC WORKS SPENDING AND DEREGULATION PARTICULARLY MULTIMEDIA SAYS NOBUMITSU KAGAMI EXECUTIVE VICE PRESIDENT OF NOMURA INVESTMENT MANAGEMENT CO TO PLAY THE MULTIMEDIA THEME NOMURA HAS BEEN INCREASING HOLDINGS OF SONY CORP AND FUJITSU LTD SAYS MR KAGAMI THE GOVERNMENT HAS ANNOUNCED PLANS TO BUILD A VAST TELECOMMUNICATIONS NETWORK AND MUCH OF THE PUBLICWORKS MONEY MAY BE GEARED TO BUILDING A JAPANESE VERSION OF THE INFORMATION HIGHWAY NOMURA REASONS THAT BOTH SONY AND FUJITSU ARE WELLPOSITIONED TO BENEFIT FROM SUCH DOMESTIC DEVELOPMENTS FUJITSU MEANTIME GOT A BOOST OF ITS OWN TUESDAY WHEN THE COMPANY'S PRESIDENT DISCLOSED PROJECTIONS THAT PRETAX PROFITS WOULD MORE THAN DOUBLE DURING THE NEXT FISCAL YEAR ON THE SOFTWARE SIDE OF JAPANESE DEREGULATION THERE'S TOKYO BROADCASTING SYSTEM INC WHICH IS BOTH A BIG PRODUCER OF TELEVISION SHOWS AND A MAJOR NETWORK BROADCASTER IN JAPAN THEY'RE FLEXIBLE SAYS MASAYOSHI KATSUDA CHAIRMAN OF KLEINWORT BENSON INVESTMENT MANAGEMENT CO DEREGULATION WILL GIVE THEM LOTS OF NEW BUSINESSES AND THEY CAN TELEVISE LOTS OF MOVIES THEY OWN TO BE SURE THE JAPANESE MARKET HAS PROMISED PLENTY IN THE PAST ONLY TO FALL SHORT IN THE FOLLOWTHROUGH WHILE THE ANNOUNCEMENT OF THE ECONOMIC PACKAGE WAS A RELIEF AFTER BEING DELAYED BY POLITICAL TURMOIL AND SPLITS OVER HOW TO FINANCE THE TAX CUTS MOST ANALYSTS DON'T HAVE HIGH HOPES FOR AN IMMEDIATE RECOVERY AMONG OTHER THINGS EXPERTS WORRY THAT THE TAX CUTS MAY ONLY LAST FOR ONE YEAR WHICH COULD DULL THEIR STIMULATIVE EFFECT BY DISCOURAGING PEOPLE FROM SPENDING THE MONEY AS A RESULT ANALYSTS ARE HEDGING THEIR BETS ABOUT THE STRENGTH OF AN EVENTUAL REBOUND AND INVESTING ACCORDINGLY FOR INSTANCE ONE BIG CHANGE IN JAPAN IN RECENT YEARS HAS BEEN THE ABRUPT ABOUTFACE IN CONSUMER HABITS WITH ONCE FREESPENDING JAPANESE TURNING VICIOUSLY COSTCONSCIOUS THE NEWLY ANNOUNCED TAX CUTS SHOULD PUT AN EXTRA 2500 IN THE POCKETBOOKS OF UPPERINCOME JAPANESE FAMILIES BUT WHILE MOST ANALYSTS AGREE THAT THIS SHOULD SPUR MORE SPENDING THEY EXPECT JAPANESE SHOPPERS TO BE FRUGAL AS A RESULT DISCOUNTERS SUCH AS CLOTHING RETAILER AOYAMA TRADING SHOULD CONTINUE TO BENEFIT FROM CONSUMERS' PENNYPINCHING AFTER HAVING BEEN STRONG STOCKMARKET PERFORMERS LATELY THE GOVERNMENT'S ANNOUNCEMENT TUESDAY THAT IT WOULD CUT SALES TAXES ON NEW CARS TO 3 FROM 45 SHOULD FURTHER BUOY DEMAND IN THE JAPANESE DOMESTIC CAR MARKET THIS YEAR INVESTMENT MANAGERS SAY STRONG AUTO SALES WERE ALREADY ANTICIPATED AS HIGHER CHARGES FOR SAFETY CERTIFICATION ON OLDER VEHICLES ENCOURAGED CAR OWNERS TO TRADE IN MODELS THEY BOUGHT IN BOOM TIMES A FEW YEARS AGO TOYOTA MOTOR CORP IS ONE OF THE LIKELIEST BENEFICIARIES BEING A LEADING PRODUCER OF JAPANESE SUBCOMPACT CARS WHICH ARE USEFUL FOR FAMILIES AND FRUGAL TOO JAPANESE CONSUMERS TEND TO HAVE A HIGH LEVEL OF LOYALTY TO THEIR CAR BRAND SAYS PETER BOARDMAN AN ANALYST AT UBS SECURITIES CO AND SINCE TOYOTA HAS ONE OF THE HIGHEST RATIOS OF DOMESTIC SALES FOR TOTAL TURNOVER IT'S WELL PLACED TO PROFIT FROM A CONSUMER REBOUND HE ADDS ON THE INTERNATIONAL FRONT A WEAKER YEN COULD MAKE JAPANESE PRODUCTS CHEAPER FOR FOREIGN BUYERS AND SHOULD HELP EXPORTS APART FROM THE NEW STIMULUS MEASURES THE CURRENCY COULD COME UNDER PRESSURE FROM INTERNATIONAL INTERESTRATE MOVEMENTS WITH US RATES EDGING UP AND JAPANESE RATES EXPECTED TO FALL FOREIGN INVESTORS WHO HAVE BEEN SNAPPING UP JAPANESE STOCKS FOR WEEKS HAVE FAVORED ELECTRONICS MAKERS FOR THIS REASON AMONG THOSE STOCKS AIWA CO PLAYS ON THE WEAKER YEN AND THE FRUGAL CONSUMER SAYS ALEXANDER WILBERFORCE AN ANALYST AT SMITH NEW COURT PLC THEY'RE VERY UNIQUE MAKING LOWCOST AND WELLDESIGNED PRODUCTS HE SAYS THEY SEEM LIKE A VERY NIMBLE COMPANY FOR ALL THE CHANGES IN JAPAN THE LATEST ECONOMIC PACKAGE STILL CONTAINS A SIZABLE DOSE OF OLDFASHIONED CONSTRUCTION SPENDING BUT SOME OF THE RELIABLE OLD NAMES SUCH AS SHIMIZU CORP HAVEN'T EXPERIENCED THEIR USUAL BOOST POSSIBLY BECAUSE OF A TAINT FROM LAST SUMMER'S CONSTRUCTIONINDUSTRY SCANDALS INSTEAD INVESTORS ARE TARGETING HOME CONSTRUCTION SINCE EARLIER GOVERNMENT SUPPORT FOR HOME LENDING HAS MADE HOUSING STARTS ONE OF THE FEW BRIGHT SPOTS IN THE CURRENT ECONOMY TWO PICKS ARE MITSUI REAL ESTATE SALES CO AND TOKYU LAND CORP BOTH LARGE LANDHOLDERS THAT SPECIALIZE IN RESIDENTIAL BUILDING AND ENJOY STRONG GOVERNMENT CONNECTIONS TOKYO STOCKS ROSE ON THE BACK OF THE GOVERNMENT'S COMPROMISE ON TAX REFORM BUT THE COMPROMISE FAILED TO INSPIRE OVERSEAS INVESTORS TO CONTINUE THEIR RECENT BUYING SPREE AND PROFITTAKING SCALED BACK SHARP GAINS MADE EARLIER IN THE DAY IN EUROPE MARKETS REGAINED SOME GROUND LOST MONDAY IN REACTION TO LAST WEEK'S INCREASE IN SHORTTERM US INTEREST RATES THE FRANKFURT MARKET GAINED 13 LONDON SHARES CLOSED HIGHER BUT UNCERTAINTY ABOUT THE MARKET'S DIRECTION CAUSED PROFITTAKERS TO WEAKEN EARLY GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11619 UP 036 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22321 UP 793 OR 37 WITH ASIATIC DEVELOPMENT OF MALAYSIA POSTING A 68 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 8556 DOWN 146 OR 17 WITH IMASCO OF CANADA SLIDING 59 IN LOCAL CURRENCY THE NIKKEI JUMPED MORE THAN 200 POINTS AT THE OUTSET OF TRADING AND THEN GAINED STEADILY THROUGH THE MORNING ON SIGNS OF THE IMPENDING TAX COMPROMISE BUT SHARES DROOPED IN THE AFTERNOON FOLLOWING THE ANNOUNCEMENT THAT AN AGREEMENT HAD BEEN REACHED THE RELATIVELY LOW LEVEL OF OVERSEAS INTEREST DURING THE MORNING CONCERNED THE MARKET ESPECIALLY GIVEN THE NIKKEI'S STEADY GAINS OF THE PAST MONTH THE ANNOUNCEMENT ITSELF WAS AN ANTICLIMAX AS THE MARKET WIDELY EXPECTED THE AGREEMENT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 211 POINTS TO 34402 WELL OFF ITS INTRADAY HIGH AFTER DROPPING 16 MONDAY THE FTSE 30STOCK INDEX GAINED 86 POINTS TO 26419 VOLUME WAS 102 BILLION SHARES UP FROM 8943 MILLION SHARES MONDAY SHARES TOOK OFF IN THE MORNING AFTER THE BANK OF ENGLAND SIGNALED A CUT IN ITS MINIMUM LENDING RATE TO 525 FROM 55 BUT PRICES BEGAN A SLOW AND STEADY DRIFT DOWNWARD THOUGH STILL FINISHING HIGHER ON THE DAY AFTER MONDAY'S SHARP DROP IN PRICES THE MARKET'S CAUTION STEMS MAINLY FROM UNCERTAINTY ABOUT WHAT INCREASING INTEREST RATES IN THE US MIGHT MEAN FOR LONDON SHARES AND OTHER STOCK MARKETS AROUND THE WORLD THAT HAVE SEEN US MONEY PILING INTO THEIR MARKETS IN FRANKFURT SHARES RECOVERED ALMOST HALF OF MONDAY'S 28 DROP THE DAX 30STOCK INDEX CLIMBED 2781 POINTS TO 210721 POINTS THE MARKET WAS BOLSTERED BY GAINS MONDAY ON THE NEW YORK STOCK EXCHANGE BUT VOLUME WAS RELATIVELY LOW 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 9402090010 940209 REVIEW & OUTLOOK EDITORIAL LEON DARMAN WHAT YOU SEE IS WHAT YOU GET SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA ON MONDAY BY WAY OF DESCRIBING THE CLINTON FY 1995 BUDGET THIS TURNS OUT TO BE GOOD ADVICE BECAUSE WHAT WE SEE IN THE ACTUAL BUDGET NUMBERS CONTRASTS SO MUCH WITH WHAT MR PANETTA AND THE BELTWAY ECHO CHAMBER ARE SAYING THE TOUGHEST BUDGET ON SPENDING CUTS THE CONGRESS HAS YET SEEN DECLARED PRESIDENT CLINTON LEAN TIMES CHIPPED IN THE NEW YORK TIMES TAKING ITS CUE FROM WHITE HOUSE AND CONGRESSIONAL SPINNERS THE MEDIA AND INTERESTGROUP CHORUS MAKES IT SOUND AS IF FISCAL DISCIPLINE HAS FINALLY HIT FAT CITY USA IF ONLY THIS WERE TRUE FOR THE REAL STORY WE TURNED TO THE BOWELS OF THE BUDGET TO PAGES 119121 OF THE HISTORICAL TABLES TABLE 89 WHICH IS ILLUSTRATED IN THE NEARBY CHART SHOWS SPENDING AUTHORITY ON KEY DOMESTIC AREAS FROM 1976 THROUGH THE CLINTON BUDGET ESTIMATES SEE ACCOMPANYING ILLUSTRATION WSJ FEB 9 1994 THE CHART SHOWS ONLY DISCRETIONARY ACCOUNTS MEANING IT LEAVES OUT THE ENTITLEMENTS SUCH AS MEDICARE AND MEDICAID THAT HAVE BEEN GROWING EVEN FASTER IT ALSO EXCLUDES DEFENSE WHICH MR CLINTON HAS BEEN CUTTING AS FAST AS HE POLITICALLY IS ABLE THE SPENDING HISTORY IS ILLUMINATING FROM 1976 TO 1980 ESSENTIALLY THE CARTER YEARS DOMESTIC SPENDING WENT ON A TEAR THEN THE GIPPER RODE INTO TOWN RONALD REAGAN'S BUDGETS EXPANDED DEFENSE SPENDING AND NEVER DID ROPE IN ENTITLEMENTS BUT THERE'S NO DOUBT THEY CUT DISCRETIONARY ACCOUNTS BY 1988 TOTAL NONDEFENSE DOMESTIC SPENDING WAS STILL LOWER THAN IT HAD BEEN IN 1981 NO WONDER LIBERALS DECLARED HIS BUDGETS DEAD ON ARRIVAL THE BUSH YEARS SAW A RETURN TO CARTER ONLY MORE SO TO GET HIS 1990 BUDGET DEAL WITH DEMOCRATS DICK DARMAN SOLD HIS PRESIDENT'S BIRTHRIGHT AND DOMESTIC SPENDING BOOMED FROM 1989 TO 1993 DOMESTIC BUDGET AUTHORITY CLIMBED TO 2123 BILLION FROM 1452 BILLION A WHOPPING 45 INCREASE NO WONDER VOTERS DIDN'T BELIEVE MR BUSH WHEN HE TRIED TO CAMPAIGN IN 1992 AS A BORNAGAIN FISCAL CONSERVATIVE THE CLINTON YEARS ARE CONTINUING THE BUSH PATTERN OF TALKING TOUGH BUT SILENTLY SPENDING AWAY THE CHART SHOWS HEALTHY GAINS IN DOMESTIC SPENDING THROUGH 1996 THE FISCAL DISCIPLINE SUCH AS IT IS OCCURS ONLY IN THE OUT YEARS AS PEOPLE IN WASHINGTON LIKE TO SAY WHICH MEANS IN BILL CLINTON'S SECOND TERM WHICH MEANS IT WILL NEVER HAPPEN EVEN BY MR CLINTON'S OWN BUDGET TABLE DOMESTIC SPENDING WILL CLIMB BY 11 BILLION IN FISCAL 1995 TO 2272 BILLION OR A HEALTHY 5 TIM MURIS A BUDGET EXPERT FROM THE REAGAN ERA NOW AT GEORGE MASON UNIVERSITY HAS INSPECTED THE FINE PRINT AND SAYS WE SHOULD INCLUDE ANOTHER 49 BILLION IN FY 1995 FOR USER FEES AND HEALTH SPENDING THAT PUTS THE 1995 INCREASE ALONE AT 73 OR TWOANDAHALF TIMES THE RATE OF INFLATION THIS IS LEAN TIMES IN WHAT IS BECOMING ITS TRADEMARK THE CLINTON WHITE HOUSE HAS TRIED TO MASK ALL OF THIS WITH SMOKE ABOUT 115 PROGRAM ELIMINATIONS AND SUPPOSEDLY TOUGH CUTS THE CLINTONITES APPARENTLY UNDERSTAND THEY CAN'T BE HONEST AND PASS THEIR PROGRAM WITH THEIR 1995 BUDGET PRESENTATION MESSRS CLINTON AND PANETTA HAVE TRULY EARNED THAT MOST COVETED OF BELTWAY ADJECTIVES DARMANESQUE 9402090009 940209 WHO'S NEWS FED'S PRESIDENT IN BOSTON MAY HEAD THE AMEX BY ANITA RAGHAVAN AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AN AMERICAN STOCK EXCHANGE SEARCH COMMITTEE WILL RECOMMEND TOMORROW THAT ITS BOARD OF GOVERNORS NAME RICHARD F SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT AS THE EXCHANGE'S NEW CHAIRMAN IF APPROVED BY THE AMEX BOARD AND IF HE ACCEPTS THE JOB THE 50YEAROLD MR SYRON WOULD SUCCEED JAMES JONES THE FORMER OKLAHOMA CONGRESSMAN WHO LEFT THE EXCHANGE LAST SUMMER TO BECOME THE US AMBASSADOR TO MEXICO SINCE MR JONES'S DEPARTURE JULES WINTER HAS SERVED AS ACTING CHAIRMAN OF THE EXCHANGE THOUGH OFFICIALS CLOSE TO THE SEARCH CAUTIONED THAT THE AMEX BOARD COULD VETO THE COMMITTEE'S RECOMMENDATION PEOPLE ON THE AMEX BOARD SAID IT WAS UNLIKELY THE BOARD WOULD REJECT MR SYRON CONSIDERING HOW LONG IT HAS TAKEN TO FIND A CANDIDATE IT WOULD BE PRETTY UNUSUAL IF WE DIDN'T GO ALONG WITH THIS SAID ONE PERSON ON THE BOARD SOME INDUSTRY EXECUTIVES SUGGESTED THAT ONE OF THE REASONS THE SEARCH TOOK SO LONG WAS THAT NOBODY WANTED THE JOB THE AMERICAN EXCHANGE IS RUNNING A FARDISTANT THIRD TO THE NEW YORK STOCK EXCHANGE AND THE NASDAQ STOCK MARKET WHICH HAVE GARNERED THE MAJOR SHARE OF NEW STOCK LISTINGS IN RECENT YEARS AND HAVE ENJOYED MOST OF THE BOOM IN STOCKTRADING VOLUME BUT ACCORDING TO PEOPLE FAMILIAR WITH THE AMEX THE SEARCH COMMITTEE INTERVIEWED ABOUT 75 CANDIDATES BEFORE DECIDING ON A SHORT LIST THAT INCLUDED WENDY GRAMM FORMER CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION MR SYRON HAS BEEN PRESIDENT OF THE FEDERAL RESERVE BANK OF BOSTON SINCE JANUARY 1989 AND BEFORE THAT WAS PRESIDENT OF THE FEDERAL HOME LOAN BANK OF BOSTON A BOSTON NATIVE WITH A DOCTORATE IN ECONOMICS FROM TUFTS UNIVERSITY HE JOINED THE FED'S STAFF IN 1968 AND LATER SERVED AS SPECIAL ASSISTANT TO THENFED CHAIRMAN PAUL VOLCKER WHILE ON LEAVE FROM THE FED HE SERVED AS DEPUTY BUDGET DIRECTOR FOR MASSACHUSETTS AND A DEPUTY ASSISTANT SECRETARY OF THE US TREASURY IN THE CARTER ADMINISTRATION SOME INDUSTRY EXECUTIVES THINK NONE OF MR SYRON'S PAST EXPERIENCES WILL BE AS CHALLENGING AS THE AMEX POSITION THE AMEX IS AT A CRUCIAL JUNCTURE SAID MURIEL SIEBERT WHO HEADS A BROKERAGE FIRM THAT BEARS HER NAME THE NEXT CHAIRMAN IS GOING TO HAVE A HARDER JOB BECAUSE OF ALL THE GROWTH ON NASDAQ DAVID WESSEL IN WASHINGTON DC CONTRIBUTED TO THIS ARTICLE 9402090008 940209 TECHNOLOGY & ENVIRONMENT COMPAQ HEDGES BETS ON POWERPC BACKED BY RIVALS IBM APPLE SPECIAL TO THE WALL STREET JOURNAL LONDON COMPAQ COMPUTER CORP HEDGING ITS BETS IN THE PERSONALCOMPUTER INDUSTRY'S LATEST CHIP WAR DOWNPLAYED A NEW CHIP BACKED BY INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC BUT SAID IT MIGHT STILL JOIN THEM IF THE DEVICE TURNS OUT TO BE A BIG SELLER COMPAQ PRESIDENT AND CHIEF EXECUTIVE ECKHARD PFEIFFER SAID IN A BRIEFING TO REPORTERS HERE THAT HE DOUBTED PCS BASED ON THE NEW CHIP WILL SELL FAST ENOUGH TO CREATE AN INDUSTRY STANDARD BUT HE INDICATED THAT HE'S KEEPING HIS OPTIONS OPEN ANYWAY WE'RE CURRENTLY EXPLORING THE FEASIBILITY AND REQUIREMENTS OF MAKING PCS THAT COULD RUN ON EITHER THE NEW POWERPC CHIP OR ON TODAY'S INDUSTRYSTANDARD INTEL CORP DESIGNS HE SAID GARY STIMAC A COMPAQ SENIOR VICE PRESIDENT SAID THE HOUSTONBASED COMPANY PLANS BY 1995 OR 1996 TO HAVE DEVELOPED A SERVER PC INTO WHICH A CUSTOMER CAN PLUG PRINTEDCIRCUIT BOARDS CONTAINING INTEL CHIPS POWERPC OR A THIRD CHIP FLAVOR MIPS FROM SILICON GRAPHICS INC A SERVER IS A SOUPEDUP PC USED TO HANDLE COMMON TASKS FOR NETWORKS OF OTHER PCS THE CAUTIOUS STRATEGY FROM THE WORLD'S THIRDBIGGEST PC MAKER AFTER IBM AND APPLE REFLECTS THE QUANDARY NOW FACING THE INDUSTRY AS IBM APPLE AND MOTOROLA INC PROMOTE THEIR JOINTLY DEVELOPED POWERPC STANDARD SO FAR ONLY ONE GROUP OF PRODUCTS IBM'S RS6000 WORKSTATIONS ARE ON THE MARKET USING POWERPC OUR VIEW IS THAT MOST PEOPLE WON'T SHIFT TO A POWERPC PROCESSOR FROM INTELBASED SYSTEMS MR STIMAC SAID SIMILARLY MR PFEIFFER SAID THAT BY THE TIME POWERPCS BECOME WIDELY AVAILABLE INTEL WILL HAVE NEW CHIPS ON THE MARKET MATCHING POWERPC'S PERFORMANCE 9402090007 940209 TUESDAY'S MARKETS STOCK PRICES ARE MIXED DOLLAR GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AS THE BOND MARKET'S TROUBLES WEIGHED HEAVILY ON TRADING THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE EDGED DOWN 029 POINT TO 390603 STANDARD & POOR'S 500STOCK INDEX SLIPPED 071 TO 47105 BUT THE NASDAQ COMPOSITE INDEX ROSE 350 TO 78270 ECONOMICALLY SENSITIVE STOCKS CONTINUED TO OUTPERFORM WITH CYCLICALS SUCH AS GENERAL MOTORS ALLIEDSIGNAL AND CATERPILLAR LEADING THE DOW JONES INDUSTRIALS OFFSETTING THOSE GAINS WERE LOSSES AMONG CONSUMER STOCKS SUCH AS SEARS PROCTER & GAMBLE AND PHILIP MORRIS JOSEPH R LIRO CHIEF ECONOMIST AT SG WARBURG SAID THE BOND MARKET'S WOES WON'T BELEAGUER THE STOCK MARKET FOR LONG HE POINTED TO YESTERDAY'S REPORT OF FURTHER GAINS IN PRODUCTIVITY IN THE FOURTH QUARTER STOCKS ARE GOING TO GET SOME REINFORCEMENT FROM EARNINGS NEWS OVER THE NEXT SEVERAL QUARTERS MR LIRO SAID I DON'T THINK THE STOCK MARKET WILL TAKE ITS DIRECTION FROM RATES IN THE SHORT RUN THOUGH SOME ANALYSTS SAID STOCKS COULD GET HAMMERED IF THE BOND MARKET FACING A SEMIANNUAL AUCTION OF 30YEAR TREASURY BONDS TOMORROW CONTINUES TO SLUMP WORLDWIDE STOCK PRICES GAIN IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 036 TO 11619 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 318 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1172 ISSUES ROSE AND 962 FELL THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17640 MARKS AND 10875 YEN COMPARED WITH 17590 MARKS AND 10870 YEN MONDAY 9402090006 940209 TEXAS JOURNAL LETTERS TO THE EDITOR HOW ABOUT LOOKING AT THREE YEARS I READ YOUR ARTICLE ON TEXAS MUTUAL FUNDS AND I WAS DISAPPOINTED THAT IT EMPHASIZED THE NEGATIVE ASPECTS OF LONGERTERM PERFORMANCE HISTORIES I ACKNOWLEDGE THAT THE FIVEYEAR AND 10YEAR PERFORMANCE RECORDS OF THE FUNDS YOU MENTIONED TRAIL THE INDUSTRY AVERAGES BUT I WOULD POINT OUT THE PROGRESS THAT OUR FUND HAS MADE IN THE PAST FEW YEARS AND THE ENVIRONMENT IN WHICH WE HAVE OPERATED CONCORDE VALUE FUND INC IS A NOLOAD EQUITY FUND OPERATING UNDER THE VALUE TRADITION A PHILOSOPHY THAT DID NOT PERFORM WELL DURING THE LATE 1980S INSTEAD IT WAS A PERIOD WHEN GROWTH FUNDS WERE THE FAVORED INVESTMENT AND OUR FUND'S PERFORMANCE DURING THOSE YEARS REFLECTS THE MARKET'S BIAS HOWEVER OVER THE PAST THREE YEARS WE HAVE MADE SIGNIFICANT PROGRESS THE FUND'S THREEYEAR ANNUALIZED RETURN RANKS IT IN THE 27TH PERCENTILE OF MORNINGSTAR'S GROUP OF GROWTH AND INCOME FUNDS AND IS 11 HIGHER THAN MORNINGSTAR'S COMPARABLE INDEX FOR GROWTH AND INCOME FUNDS MORNINGSTAR'S RISKADJUSTED RATING IN CONTRAST TO LIPPER'S TOTALRETURN STATISTIC IS A COMBINATION OF PERFORMANCE AND RISK DESIGNED TO EXPRESS THE RELATIVE ATTRACTIVENESS OF A FUND'S RISK/REWARD PROFILE A RATING OF 3 INDICATES THAT CONCORDE VALUE FUND'S RELATIVE ATTRACTIVENESS WAS IN THE MIDDLE 35 OF FUNDS IN ITS CLASS AS OF DEC 31 1993 AN IMPROVEMENT OVER THE RATING OF 2 THAT THE FUND HAD HELD SINCE MARCH 31 1992 MORNINGSTAR'S THREEYEAR RISK RATING EVALUATES A FUND'S DOWNSIDE VOLATILITY OR HOW RISKY THE FUND IS RELATIVE TO THAT OF OTHER FUNDS IN ITS CLASS THAT RATING ALSO HAS IMPROVED SINCE 1992 9402090005 940209 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9402090004 940209 INTERNATIONAL VODAFONE GROUP BUYS 33 STAKE LONDON VODAFONE GROUP PLC SAID IT AGREED TO BUY 33 OF GENERAL MOBILE TELECOMMUNICATIONS LTD THE PARENT OF TALKLAND INTERNATIONAL LTD FROM FRANCE'S GENERALE DES EAUX SA VODAFONE SAID IN A STATEMENT IT WILL PAY 292 MILLION 433 MILLION FOR THE STAKE THROUGH THE ISSUE OF VODAFONE SHARES IT WILL ALSO LEND 29 MILLION TO GENERAL MOBILE 9402090003 940209 PEPPERAND SALT WHAT'S IN MY HANDS WHY CONAN DOYLE DRACULA DUSK JOCKEY 9402090002 940209 WHO'S NEWS DATEQ'S CHAIRMAN RESIGNS NORCROSS GA DATEQ INFORMATION NETWORK INC SAID ROBERT L STANLEY ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE RESIGNED THE COMPANY WHICH PROVIDES AUTOMOBILE INSURERS WITH MOTOR VEHICLE REPORTS GAVE NO REASON FOR MR STANLEY'S DEPARTURE NEITHER COMPANY EXECUTIVES NOR MR STANLEY COULD BE REACHED FOR COMMENT DATEQ SAID RICHARD HUNTER CROSS III WILL SUCCEED MR STANLEY AS PRESIDENT AND CHIEF EXECUTIVE MOST RECENTLY MR CROSS WAS CHIEF EXECUTIVE OF NORCOM INC 9402090001 940209 SPECTRUM LAUNCHES COUNTERMOVE AIMED AT DISCREDITING COMMENTS BY SCULLEY BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC LAUNCHED A FULLSCALE COUNTERATTACK YESTERDAY AIMED AT DISCREDITING JOHN SCULLEY'S CONTENTION THAT HE QUIT BECAUSE HE HAD BEEN MISLED ABOUT THE COMPANY'S DEEPENING PROBLEMS THE NEW EFFORT BY THE COMPANY WHOSE STOCK PRICE FELL ABOUT 65 IN THE WAKE OF MR SCULLEY'S SUDDEN RESIGNATION THIS WEEK DRAWS HARD BATTLE LINES BETWEEN THE TWO SIDES MR SCULLEY THE FORMER CHAIRMAN OF APPLE COMPUTER INC CLAIMS HE WAS DUPED BY THE COMPANY AND THE COMPANY CLAIMS MR SCULLEY IS LYING SPECTRUM GENERAL COUNSEL CHRISTOPHER FRANCO IN MAKING THE COMPANY'S MOST DETAILED RESPONSE YET TO MR SCULLEY'S CHARGES PROVIDED COMPANY DOCUMENTS AND DESCRIBED MEETINGS IN WHICH MR SCULLEY SUPPOSEDLY LEARNED OF SPECTRUM'S PROBLEMS THE ISSUES INCLUDE STOCK OPTIONS EXERCISED BY TOP INSIDERS AND A PROBE BY THE SECURITIES AND EXCHANGE COMMISSION INTO THE COMPANY'S LICENSING AGREEMENTS AND ALLEGED STOCK MANIPULATION MEANWHILE THE COMPANY SAID IT LEARNED LATE YESTERDAY THAT ITS NEW AUDITOR KMPG PEAT MARWICK HAD RESIGNED MR SCULLEY HAD HIRED THE FIRM TO PERFORM AN AUDIT OF THE COMPANY WHICH LED SPECTRUM TO RESTATE ITS EARNINGS MONDAY TURNING PURPORTED PROFITS INTO OUTRIGHT LOSSES MR SCULLEY QUIT THE TINY WIRELESS COMMUNICATIONS COMPANY ON MONDAY SIMULTANEOUSLY FILING A LAWSUIT IN FEDERAL DISTRICT COURT IN NEW YORK CITY AGAINST SPECTRUM'S PRESIDENT PETER CASERTA THE 10 MILLION SUIT CHARGES MR CASERTA WITH WITHHOLDING INFORMATION ABOUT THE FEDERAL PROBE AND THE ACCOUNTING PROBLEM THAT FORCED SPECTRUM TO RESTATE ITS NUMBERS FOR THE PAST TWO QUARTERS ACCORDING TO THE SUIT MR SCULLEY ALSO WAS SURPRISED TO LEARN THAT MR CASERTA AND TWO INSIDERS EXERCISED OPTIONS AT A COMBINED PROFIT OF MORE THAN 13 MILLION A MONTH AFTER MR SCULLEY JOINED THE COMPANY BUT SPECTRUM'S MR FRANCO PAINTS A FAR DIFFERENT PICTURE OF WHAT MR SCULLEY KNEW AND WHEN HE LEARNED OF IT THE COMPANY SAID IT WILL DISCLOSE MORE DETAILS TODAY IN A LAWSUIT IT PLANS TO FILE AGAINST MR SCULLEY IN FEDERAL COURT IN NEW YORK OR CONNECTICUT MR FRANCO SAID FOR EXAMPLE THAT MR SCULLEY WAS FULLY INFORMED ABOUT SPECTRUM'S PROBLEMS INCLUDING THE FEDERAL PROBE BEFORE HE JOINED THE COMPANY MR FRANCO SAID MR SCULLEY DISCUSSED THE SEC PROBE WITH MR CASERTA AND OTHER SPECTRUM EXECUTIVES AT A DINNER AT CAMPAGNOLA A RESTAURANT IN NEW YORK CITY ON OCT 15 THREE DAYS BEFORE MR SCULLEY JOINED THE COMPANY IN ADDITION WHILE MR SCULLEY EXPRESSED SURPRISE AT THE INSIDER TRADES MR FRANCO PROVIDED A COMPANY DOCUMENT SIGNED BY MR SCULLEY THAT EXPLICITLY STATES THAT MR CASERTA WOULD EXERCISE OPTIONS FOR AT LEAST ONE MILLION SHARES AFTER NOV 15 AND THAT OTHER COMPANY INSIDERS HAD THE RIGHT TO DO SO AS WELL THEN AGAIN THE DOCUMENT ALSO ASSURED MR SCULLEY THAT SPECTRUM EXECUTIVES DON'T WISH TO TAKE ANY ACTIONS WHICH MIGHT BE INTERPRETED AS SHOWING A LACK OF COMMITMENT TO SPECTRUM YET MR CASERTA AND THE TWO OTHER INSIDERS WHO EXERCISED A LARGE CHUNK OF THEIR OPTIONS DIDN'T HOLD ON TO ANY OF THE SHARES DUMPING THEM ALL INTO THE MARKET IN LATE NOVEMBER AND EARLY DECEMBER MR SCULLEY WOULDN'T COMMENT ON SPECTRUM'S SALVO PREFERRING TO LET A SPOKESWOMAN HANDLE HIS REBUTTAL SHE SAID MR SCULLEY THOUGHT THE SEC PROBE HAD BEEN CONCLUDED BEFORE HE ARRIVED AT SPECTRUM AND THAT HE HAD EXPECTED THE INSIDERS WOULD SELL THEIR STOCK IN AN ORDERLY FASHION AND THAT THEY WOULDN'T DO IT WITH INSIDE KNOWLEDGE SUCH AS THE SEC INVESTIGATION ON ANOTHER MATTER SPECTRUM'S GENERAL COUNSEL MR FRANCO SAID MR SCULLEY COULD HAVE LEARNED OF THE COMPANY'S ACCOUNTING PROBLEMS SIMPLY BY READING THE COMPANY'S QUARTERLY STATEMENTS FILED WITH THE SEC INSTEAD MR FRANCO CONTENDED MR SCULLEY DISENGAGED HIMSELF FROM SPECTRUM'S DAILY OPERATIONS AND WENT ON A HUNT FOR ACQUISITIONS WITH A CONSULTANT ARJUN GUPTA MR SCULLEY HAD EVEN HOPED TO HAVE MR GUPTA WHO COULDN'T BE LOCATED FOR COMMENT NAMED SPECTRUM'S CHIEF OPERATING OFFICER WHICH WOULD MEAN DILUTING MR CASERTA'S INFLUENCE THERE WAS A CLASH THROUGHOUT JOHN'S TENURE BETWEEN JOHN AND PETER AND SPECTRUM MANAGEMENT MR FRANCO SAID THERE WAS A LOT OF DISRUPTION WITH PEOPLE NOT KNOWING WHO'S ON FIRST IN FACT MR SCULLEY KEPT SPECTRUM'S EXECUTIVES IN THE DARK ABOUT HIS PLANS TO LEAVE THE COMPANY UNTIL ONLY FIVE MINUTES BEFORE THE STOCK MARKET OPENED ON MONDAY MORNING A SPOKESWOMAN FOR MR SCULLEY SAID HE HELD HIS FIRE BECAUSE HE WANTED TO COMPLETE HIS DUTIES AS CHIEF EXECUTIVE BEFORE MAKING HIS ANNOUNCEMENT MR FRANCO NOTED THAT HE AND MR SCULLEY HAD MET JUST A WEEK AGO WITH A TENANT IN NEW YORK'S SEAGRAM'S BUILDING ABOUT LEASING SPACE FOR SPECTRUM'S NEW CORPORATE HEADQUARTERS MR SCULLEY ASKED THE TENANT TO DRAW UP A SUBLEASE AGREEMENT FOR 5000 SQUARE FEET OF SPACE THEN OVER THE PAST WEEKEND MR SCULLEY SPOKE WITH SPECTRUM'S ATTORNEYS ABOUT CHANGING THE MANHASSET NY COMPANY'S NAME TO GLOBAL WAVE COMMUNICATIONS CORP MR FRANCO SAID BUT MR FRANCO DIDN'T NOTICE ANYTHING UNUSUAL ABOUT MR SCULLEY'S ROUTINE UNTIL MONDAY MORNING FIVE MINUTES BEFORE THE MARKET OPENED EARLIER THAT MORNING AT ABOUT 630 AM HE SAID MR SCULLEY AND HE HAD AGREED TO PUBLICLY DISCLOSE THE EARNINGS RESTATEMENT AT 920 AM ABOUT 10 MINUTES BEFORE THE MARKET OPENED LATER ON ABOUT 925 AM MR SCULLEY CALLED MR FRANCO BACK AND DEMANDED PROOF THAT THE ANNOUNCEMENT HAD BEEN MADE SPECTRUM'S COUNSEL FRANTICALLY CALLED THE NASD TO HALT TRADING IN THE COMPANY'S STOCK BUT THE EXCHANGE WASN'T ABLE TO CALL A HALT UNTIL 934 AM BY THAT TIME MORE THAN A MILLION SHARES HAD ALREADY TRADED THE FIRST IN A RUN THAT BY THE END OF THE DAY WOULD AMOUNT TO 35 MILLION SHARES THE LARGEST VOLUME IN NASD HISTORY 9402090194 940118 PEOPLE PATTERNS BY ALAN L OTTEN MIGRATION PATTERNS GROW EVER MORE COMPLEX AND POTENTIALLY TROUBLESOME UNIVERSITY OF MICHIGAN DEMOGRAPHER WILLIAM H FREY ANALYZED 1990 CENSUS DATA TO SEE HOW IMMIGRATION AND MIGRATION FLOWS WITHIN THE US AFFECTED STATES AND REGIONS BETWEEN 1985 AND 1990 DR FREY FOUND THAT HISPANIC ASIAN AND BLACK IMMIGRANTS FROM ABROAD PREDICTABLY CLUSTERED IN THE HALFDOZEN EASILY ACCESSIBLE STATES WITH LARGE MINORITY POPULATIONS CALIFORNIA NEW YORK TEXAS NEW JERSEY ILLINOIS AND MASSACHUSETTS AT THE SAME TIME HOWEVER RESIDENTS OF THESE STATES WERE LEAVING IN DROVES AND ALL BUT CALIFORNIA LOST SUBSTANTIALLY MORE PEOPLE TO OTHER STATES THAN THEY GAINED FROM THEM EVEN CALIFORNIA LONG A MECCA FOR RESIDENTS FROM OTHER STATES HAD AN UNUSUALLY SMALL INCREASE OF POPULATION GAIN FROM INTERNAL MIGRATION THOSE LEAVING THE SIX STATES INCLUDED STRIKINGLY LARGE NUMBERS OF LESSSKILLED LOWERINCOME WHITES SOME HAD LOST THEIR JOBS OFTEN TO IMMIGRANTS BUT DR FREY BELIEVES MANY WERE SEEKING TO DISTANCE THEMSELVES FROM THE NEWCOMERS OFTEN MOVING ONLY TO NEIGHBORING STATES AT THE OTHER END OF THE SCALE WERE STATES LARGELY IN THE SOUTHEAST AND THE WEST WHERE PEOPLE COMING IN FROM OTHER STATES FAR OUTNUMBERED THOSE LEAVING BIGGEST GAINERS WERE FLORIDA GEORGIA NORTH CAROLINA VIRGINIA WASHINGTON AND ARIZONA STRONG ECONOMIES AND/OR GOOD CLIMATE WERE THE MAIN ATTRACTIONS EXCEPT FOR FLORIDA MOST HAD COMPARATIVELY LOW IMMIGRATION FROM ABROAD EVEN IN FLORIDA THE NET GAIN FROM INTERNAL MIGRATION WAS ALMOST THREE TIMES THAT FROM ABROAD AND THE ECONOMICALLY DEPRESSED STATES IN THE UPPER MIDWEST AND OIL PATCH SAW MINIMAL IMMIGRATION FROM ABROAD AND OTHER STATES BUT HAD LARGE OUTFLOWS OF RESIDENTS MICHIGAN OHIO IOWA OKLAHOMA AND LOUISIANA WERE AMONG THESE STATES THE EXODUS INCLUDED SUBSTANTIAL NUMBERS OF BETTEREDUCATED MEN AND WOMEN HEADING FOR GREENER PASTURES IN THE SOUTHEAST AND PACIFIC COAST DR FREY WORRIES ABOUT A BALKANIZING PATTERN EMERGING FROM THESE TRENDS HE WARNS THAT THE CONTINUATION OF THESE PROCESSES A MINORITYDOMINATED IMMIGRATION COUPLED WITH AN INTERNAL MIGRATION WHITE FLIGHT' COULD LEAD TO SHARPLY DIVERGENT RACE AND SOCIODEMOGRAPHIC STRUCTURES ACROSS BROAD REGIONS AND STATES VIOLENTCRIME VICTIMS HAVE INCREASED SINCE 1973 BUT THE NUMBER OF VICTIMS OF OTHER CRIMES HAS DECREASED THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS HAS ANALYZED 20YEAR TRENDS SHOWN BY THE ANNUAL NATIONAL CRIME VICTIMIZATION SURVEY WHICH SINCE 1973 HAS TRACKED CRIME BY INTERVIEWING LARGE NATIONAL SAMPLES OF HOUSEHOLDS THE SURVEY COVERS RAPE ROBBERY ASSAULT BURGLARY PERSONAL AND HOUSEHOLD THEFT AND MOTORVEHICLE THEFT THE ANALYSIS REVEALS THAT THE NUMBER OF PEOPLE VICTIMIZED BY THE COVERED CRIMES HAD FALLEN 6 BY 1992 THERE WERE 357 MILLION VICTIMIZATIONS IN 1973 THE NUMBER PEAKED AT 415 MILLION IN 1981 AND THEN DROPPED FAIRLY STEADILY TO 336 MILLION IN 1992 THE BIGGEST DECLINES CAME IN THEFTS FROM INDIVIDUALS AND HOMES VIOLENT CRIMES ROBBERY RAPE AND ASSAULT PRESENTED A DIFFERENT PICTURE UP 24 BY 1992 THE REPORT NOTED THAT BLACK MEN AND WOMEN PARTICULARLY TEENAGERS WERE VICTIMIZED BY VIOLENT CRIMES IN 1992 AT THE HIGHEST RATES EVER RECORDED VICTIMIZATIONS OF WHITE TEENAGERS ALSO ROSE MALE VICTIMS OF VIOLENT CRIMES ARE FAR MORE LIKELY TO BE VICTIMIZED BY STRANGERS THAN BY ACQUAINTANCES THE BUREAU REPORTS BUT FEMALE VICTIMS ARE AS LIKELY TO BE VICTIMIZED BY A HUSBAND BOYFRIEND OR OTHER INTIMATE AS BY A STRANGER MOST VIOLENTCRIME VICTIMS ARE VICTIMIZED BY PEOPLE OF THE SAME RACE ABOUT 75 OF WHITE VICTIMS ARE VICTIMIZED BY WHITES AND ABOUT 85 OF BLACK VICTIMS ARE VICTIMIZED BY BLACKS HISPANIC OR LATINO IT'S A CONTROVERSIAL QUESTION THE CENSUS BUREAU AND OTHER FEDERAL AGENCIES USE THE TERM HISPANIC TO DESCRIBE AMERICANS WHOSE ORIGIN WAS IN THE SPANISHSPEAKING COUNTRIES OF THE WESTERN WORLD MANY OTHER PUBLIC AND PRIVATE GROUPS FOLLOW THAT LEAD MOST NEWS MEDIA GENERALLY USE HISPANIC WHEN DISCUSSING BROAD NATIONAL TRENDS BUT THOSE IN AREAS WITH LARGE POPULATIONS FROM MEXICO AND CENTRAL AMERICA OFTEN SWITCH TO LATINO WHEN REFERRING TO THE LOCAL COMMUNITY ACADEMICS AND LIBERAL GROUPS INCREASINGLY FAVOR LATINO THEY CLAIM IT MORE ACCURATELY DESCRIBES THE ORIGIN OF MOST SPANISHSPEAKING US RESIDENTS MOREOVER THEY SAY HISPANIC BECAME OFFICIAL GOVERNMENT NOMENCLATURE DURING THE NIXON ADMINISTRATION AND THAT'S A MARK AGAINST IT MANY SPANISHSPEAKING GROUPS AREN'T HAPPY WITH EITHER AND PREFER TERMS INDICATING THEIR COUNTRY OF ORIGIN SUCH AS MEXICANAMERICAN PUERTO RICAN OR CUBANAMERICAN SPECIALISTS WHO HAVE DELVED INTO THE ISSUE SAY PREFERENCE TENDS TO VARY BY REGION AND SOCIOECONOMIC CLASS BUSINESSMEN AND THOSE WHO HAVE BEEN IN THE US FOR MANY YEARS SEEM TO PREFER HISPANIC WHILE POORER GROUPS OR MORE RECENT IMMIGRANTS OPT FOR LATINO ACTUALLY THE SPECIALISTS SAY THE TWO TERMS COVER PRETTY MUCH THE SAME GROUPS BUT THAT DOESN'T LESSEN THE DEPTH OF FEELING OVER THE ISSUE SAYS ANDRES JIMINEZ DIRECTOR OF THE CALIFORNIA POLICY SEMINAR OF THE UNIVERSITY OF CALIFORNIA IT'S A MINEFIELD THE CENSUS BUREAU HAS CHOSEN THE SITES FOR A 1995 TEST OF SAMPLING AND OTHER NEW TECHNIQUES TO BE USED IN THE NEXT DECENNIAL CENSUS THEY ARE NEW HAVEN CONN OAKLAND CALIF PATERSON NJ AND SIX RURAL PARISHES IN NORTHWESTERN LOUISIANA ALMOST HALF OF ALL VISITS TO PSYCHIATRISTS ARE MADE BY PEOPLE BETWEEN 25 AND 44 YEARS OLD ACCORDING TO A STUDY BY THE NATIONAL CENTER FOR HEALTH STATISTICS SEE RELATED LETTER LETTERS TO THE EDITOR HERNANDEZ & O'HARA'S BLUEEYED FRECKLED SON WSJ FEB 9 1994 9401180113 YY94 MM02 9402090153 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 GUARDIAN LIFE CLARIFIES SUSPENSION OF AGENT WSJ FEB 9 1994 9401210067 YY94 MM02 9402090134 940113 POLITICS & PEOPLE CLINTON'S RUSSIA POLICY IS NO SHINING SUCCESS BY ALBERT R HUNT IN JUNE 1992 RUSSIAN PRESIDENT BORIS YELTSIN AFTER A SOJOURN WITH GEORGE BUSH AT CAMP DAVID MET WITH CONGRESSIONAL LEADERS AT THE RUSSIAN EMBASSY AS HE WAS TALKING WITH DEMOCRATIC CONGRESSIONAL LEADERS THOMAS FOLEY AND GEORGE MITCHELL AND THEIR REPUBLICAN COUNTERPARTS BOB MICHEL AND BOB DOLE THE RUSSIAN LEADER NOTED ALMOST CASUALLY THAT WE ARE ALL LOOKING FORWARD TO PRESIDENT BUSH'S REELECTION NOT QUITE INTERRUPTED SPEAKER OF THE HOUSE FOLEY TELLING A SURPRISED BORIS YELTSIN THAT WHILE EVERYBODY LIKES GEORGE BUSH SOME NOT ONLY WEREN'T LOOKING FORWARD TO HIS REELECTION BUT DIDN'T THINK IT WOULD HAPPEN THE ANECDOTE IS OF LITTLE CONSEQUENCE EXCEPT TO SHOW HOW STUNNINGLY NAIVE MR YELTSIN IS ABOUT AMERICAN POLITICS MORE SIGNIFICANT HOWEVER AS PRESIDENT CLINTON SITS DOWN FOR TALKS IN MOSCOW TODAY IS THAT IT JUST MAY BE THAT THE CLINTON ADMINISTRATION HAS BEEN SIMILARLY NAIVE ABOUT RUSSIAN POLITICS THE ADMINISTRATION CONSIDERS ITS RUSSIAN POLICY A SHINING SUCCESS IN A SEA OF FOREIGN POLICY PROBLEMS THE STRONG SHOWING OF NEOFASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS MAY HAVE SHOCKED THE CLINTONITES BUT IT DIDN'T CHANGE THEIR SELFCONGRATULATORY POSTURE THE CHIEF ARCHITECT OF THIS POLICY RUSSIA EXPERT AND FORMER TIME MAGAZINE EDITOR STROBE TALBOTT NEWLY DESIGNATED AS DEPUTY SECRETARY OF STATE HAS WON FAWNING REVIEWS FROM MOST OF HIS FORMER COLLEAGUES IN THE DIPLOMATIC PRESS CORPS YET THE ADMINISTRATION CLEARLY UNDERESTIMATED THE ECONOMIC DISASTER IN RUSSIA IT'S STILL UNSURE OF HOW TO SPEND MUCH OF THE 3 BILLION IT GOT CONGRESS TO APPROPRIATE FOR RUSSIAN AID LAST YEAR THE RUSSIANS SHAMEFULLY HAVE BEEN GIVEN A VETO OVER SOME SECURITY ARRANGEMENTS IN EASTERN EUROPE AND OUR POLICY RESTS ALMOST EXCLUSIVELY ON BORIS YELTSIN MOST OF THE ADMINISTRATION TALK ABOUT ECONOMIC PROGRESS THERE IS A MIRAGE IN A COUNTRY WITH NO MODERN HISTORY OF MARKETS IT'S NOT SURPRISING THAT WHEN YOU START ELIMINATING CENTRAL PLANNING WHAT YOU GET IS A BLACK NOT A FREE MARKET RUSSIA AS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN NOTED IN A SPEECH EARLIER THIS YEAR LACKS THE RUDIMENTARY INSTITUTIONS MOST PROMINENTLY A LEGAL SYSTEM TO CONVERT TO A MARKETBASED SYSTEM MEANING THAT ANY TRANSITION IS LIKELY TO BE SIGNIFICANTLY STRETCHED OUT THE PHYSICAL INFRASTRUCTURE NOTES WELLESLEY COLLEGE RUSSIA EXPERT MARSHALL GOLDMAN IS DREADFUL MORE THAN 70 OF ALL RUSSIAN FACTORIES ARE MODELS OF INEFFICIENCY WITH WORK FORCES OF MORE THAN 1000 EMPLOYEES THE PREDICTABLE RESULT IS RAMPANT INFLATION AND NEGATIVE GROWTH THE RUSSIANS THE LINE GOES ARE TERRIFIC AT CONVERTING STEEL INTO SCRAP ONE PROMINENT ECONOMIST AFTER SPENDING TIME IN RUSSIA CONCLUDED THERE'S ONE SOLUTION SEND 150 MILLION PEOPLE AWAY FOR A FEW YEARS RAZE THE COUNTRY AND START FROM SCRATCH THIS MAKES THE DEBATE ABOUT ECONOMIC SHOCK THERAPY IN RUSSIA AFTER THE PARLIAMENTARY ELECTIONS MR TALBOTT WAS SAID TO ADVOCATE MORE THERAPY AND LESS SHOCK A FALSE CHOICE THE ADVOCATES CITE POLAND AS A SUCCESS BUT POLAND HAS A HISTORY OF MARKETS MORE THAN THREEQUARTERS OF THE FARMS THERE NEVER WERE COLLECTIVIZED AND THERE WAS A SMALLER BUT NOT INSIGNIFICANT RETAIL MARKET THE THERAPY WITHLESSSHOCK PROPONENTS IGNORE THE EXAMPLE OF UKRAINE WHICH MAKES RUSSIA LOOK GOOD THUS THE INESCAPABLE CONCLUSION IS THAT ECONOMICALLY AS WELL AS POLITICALLY WHAT THE US DOES WILL HAVE AT MOST A MARGINAL EFFECT WHICH RAISES QUESTIONS ABOUT WHY WE'RE POURING BILLIONS OF DOLLARS INTO THIS MESS MOST OF THE 3 BILLION APPROPRIATED IN 1993 LIES IN LIMBO ONE PRELIMINARY PLAN CALLED FOR 15 OF THE MONEY EARMARKED FOR MILITARY HOUSING RELOCATION TO BE SET ASIDE FOR LOCAL RUSSIAN HOUSING OFFICIALS CONGRESSIONAL EXPERTS POINTED OUT THAT THIS WOULD CONSTITUTE NOTHING MORE THAN A PAYOFF IN A TIGHT FISCAL CLIMATE AT HOME FEW AMERICANS WILL COTTON TO SPENDING MILLIONS OF THEIR TAX DOLLARS TO BRIBE CORRUPT RUSSIANS SIMILARLY THERE'S WIDESPREAD SPECULATION ABOUT HUGE RIPOFFS BY THE UBIQUITOUS CONSULTANTS THE SIMPLE FACT IS THAT RUSSIA IS AN ECONOMIC MIDGET ILLEQUIPPED TO RECEIVE LARGE AMOUNTS OF OUTSIDE AID TRADE IS A PRETTY DECENT MEASURE OF ECONOMIC STANDING AND THE US HAS MORE COMMERCE WITH 38 NATIONS RUSSIA RANKS BEHIND DENMARK AND SLIGHTLY AHEAD OF COSTA RICA WHILE STROBE TALBOTT PROCLAIMS RUSSIA AS OUR TOP FOREIGN POLICY PRIORITY BILL CLINTON SAYS ECONOMICS IS THE PREEMINENT INTERNATIONAL ISSUE THERE'S A CONFLICT IT'S ALSO INCONGRUOUS THAT A COUNTRY SO ECONOMICALLY DECIMATED IS AN IMPERIALISTIC THREAT NOTWITHSTANDING ITS HISTORY FOR THE FORESEEABLE FUTURE RUSSIA MAY BE A NUISANCE SOMETIMES EVEN A DANGEROUS ONE TO ITS NEWLY INDEPENDENT IMMEDIATE NEIGHBORS BUT THE POSSIBLE REEMERGENCE OF A SUPERPOWER THREAT IS LUDICROUS SOMEDAY RUSSIA WITH CONSIDERABLE RESOURCES MAY BE AN IMPORTANT COUNTRY AGAIN BUT THAT HARDLY RESTS SOLELY ON BORIS YELTSIN'S SUCCESS AS THE ADMINISTRATION WOULD HAVE YOU BELIEVE THE RUSSIAN LEADER IS A BRAVE MAN HE THRIVES ON CRISES BUT HE SHOWS MUCH LESS TALENT FOR THE COALITION CRAFTING OR CONSTITUENCY BUILDING ESSENTIAL TO GOVERNANCE INDEED HE SEEMS MORE LIKE AMERICAN POLITICIANS WHO THRIVE ON RUNNING FOR OFFICE BUT ARE RESTLESS SERVING IT'S DICEY TO SO TOTALLY BASE POLICY ON THIS ONE MAN THERE STILL ARE IMPORTANT ISSUES THIS THIRDRATE COUNTRY HAS 25000 NUCLEAR WEAPONS MR TALBOTT AND TOP DEFENSE DEPARTMENT OFFICIALS DESERVE CREDIT FOR NEGOTIATING A NUCLEAR PACT WITH UKRAINE LET'S HOPE IT WILL STICK IT'S ESSENTIAL THAT FURTHER DISMANTLING AND DESTRUCTION OF NUCLEAR WEAPONS TAKE PLACE IN RUSSIA AND OTHER FORMER SOVIET STATES WE OUGHT TO GIVE WHATEVER MONEY IT TAKES TO FACILITATE THAT THE U S ALSO OUGHT TO REMOVE BARRIERS TO RUSSIAN EXPORTS AND HELP FUND AND LAUNCH NEW BUSINESSES AS OPPOSED TO TRYING TO PRIVATIZE BLOATED EXISTING STRUCTURES BUT WHEN PRESIDENT CLINTON AS HE DID THE OTHER DAY PREDICTS THAT RUSSIA IS ON THE WAY TO AGAIN BECOMING A VERY GREAT NATION IT'S A DELUSION IN THE SAME SESSION WITH COLUMNISTS THE PRESIDENT SUGGESTED THAT IT WOULD BE GOOD TO TAILOR THE ADMINISTRATION'S RUSSIAN POLICY TO A SLOGAN THAT WOULD FIT ON A BUMPER STICKER I THINK OUR SLOGAN WOULD BE THERE NEEDS TO BE MORE REFORM AND MORE SOCIAL SERVICE SUPPORT MORE ATTEMPTS TO BUILD A SAFETY NET TO DEAL WITH THE CONSEQUENCES OF REFORM BUT NOT AN ATTEMPT TO SLOW DOWN THE REFORM EFFORT THEN IF YOU SAID THERAPY THEN YOU'D HAVE ALL KINDS OF OTHER AMBIGUOUS THINGS YOU COULD GET IN THERE THE PRESIDENT MAY NEED NOT ONLY A BETTER SLOGAN BUT A MORE REALISTIC POLICY SEE RELATED LETTER LETTERS TO THE EDITOR DISMANTLING WARHEADS IS GOOD FOR BUSINESS WSJ FEB 9 1994 9401130122 YY94 MM02 9402090133 940125 PRICING HEALTH CARE THERE IS NO HEALTH CARE CRISIS BY IRWIN M STELZER TONIGHT PRESIDENT CLINTON IS EXPECTED TO GIVE A PROMINENT PLACE TO HIS HEALTH CARE REFORM IN THE STATE OF THE UNION MESSAGE THE DEBATE OVER HIS PLAN HAS BEEN DOMINATED BY POLICY WONKS WHO LIKE THE PRESIDENT HIMSELF ARE NEVER SO HAPPY AS WHEN THEY ARE PORING OVER THE DETAILS LOST IN ALL THIS HAS BEEN THE LARGE QUESTION OF WHETHER A MASSIVE TRANSFORMATION OF OUR HEALTH CARE SYSTEM IS NECESSARY THE IDEA THAT THERE IS A SEVERE HEALTH CARE CRISIS STEMS FROM FOUR SOURCES THE FIRST IS THE INSECURITY GENERATED BY THE MOST RECENT RECESSION MOST AMERICANS' HEALTH INSURANCE IS LINKED TO THEIR JOBS WITH EMPLOYERS PAYING ABOUT 86 OF THE TOTAL COST LOSE YOUR JOB LOSE YOUR COVERAGE GET A NEW JOB AND YOU MIGHT NOT GET COVERAGE IF YOU HAVE A HEALTH PROBLEM THEN THERE IS THE CONCERN OVER COSTS ALREADY CLAIMING 14 OF OUR GROSS NATIONAL PRODUCT A FIGURE HIGH BY INTERNATIONAL STANDARDS HEALTH CARE COSTS HAVE BEEN RISING MANY PEOPLE HAVE CONVINCED THEMSELVES THAT THIS WILL LEAD TO THE IMPOVERISHMENT OF AMERICA ADDITIONAL PRESSURE FOR REFORM COMES FROM THE NOTION THAT EVERYONE SHOULD HAVE HEALTH INSURANCE AS A MATTER OF RIGHT SINCE AT LEAST 37 MILLION AMERICANS ARE NOW WIDELY SAID TO BE WITHOUT COVERAGE THE SYSTEM MUST BE FAILING THE FOURTH CONTRIBUTOR TO THE SENSE OF CRISIS IS THE LIBERAL BIAS OF THE MAJOR MEDIA THIS HELPS EXPLAIN ONE OF THE GREAT ANOMALIES IN THE DEBATE ALTHOUGH 75 OF AMERICANS HAVE BEEN CONVINCED THAT THERE IS A CRISIS 80 SIMULTANEOUSLY REPORT THEMSELVES AS VERY OR SOMEWHAT SATISFIED WITH THEIR OWN HEALTH CARE ALL THIS ADDS UP TO A GREAT POLITICAL OPPORTUNITY FOR THE DEMOCRATS TO WED THE MIDDLE CLASS TO THE PARTY IT NEEDS A MODERN VERSION OF ROOSEVELT'S SOCIAL SECURITY SYSTEM ENTER HEALTHCARE REFORM UNFORTUNATELY FOR THE PRESIDENT'S POLITICAL STRATEGISTS HOWEVER THE CRISIS ON WHICH THE CASE FOR THIS REFORM RESTS IS AN ARTIFICIAL ONE AND THE INTENDED BENEFICIARIES ARE ITS BIGGEST LOSERS TAKE THE MUCHHERALDED 14 FIGURE THE APPROXIMATELY 940 BILLION AMERICANS SPENT ON HEALTH CARE IN 1993 DID INDEED REPRESENT A BIT MORE THAN 14 OF THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES BUT BY WHAT STANDARD IS THAT TOO MUCH IF WE PREFER TO DEVOTE A LARGER PORTION OF OUR INCOMES TO TOPQUALITY HEALTH CARE THAN DO OTHER NATIONS WHAT IS WRONG WITH THAT AFTER ALL WE DO NOT SETTLE FOR THE HOUSING STANDARDS THAT PREVAIL IN POORER COUNTRIES WE INSIST ON CENTRAL HEATING AND AIRCONDITIONING THE LATTER NOW INSTALLED IN NEARLY HALF OF THE HOMES OF EVEN THOSE WE CLASSIFY AS POOR NOR ARE TINY CARS WITH MECHANICAL CLUTCHES COMMON ELSEWHERE THE STUFF OF THE AMERICAN DREAM NEITHER IS SPARTAN HEALTH CARE INTERNATIONAL COMPARISONS ALSO GIVE NO WEIGHT TO DIFFERENCES IN THE QUALITY OF SERVICE THE CONGRESSIONAL QUARTERLY CITES THE FACT THAT JAPAN'S GOVERNMENT PLAYS A MUCH GREATER ROLE IN PRIVATE HEALTHCARE DELIVERY THAN DOES THE US GOVERNMENT TO EXPLAIN HOW JAPAN KEEPS ITS COSTS CONSIDERABLY LOWER THAN THOSE OF THE US NO MENTION OF WHAT FRED BARNES CALLS JAPANESE ASSEMBLYLINE TREATMENT FROM DOCTORS WHO SEE AN AVERAGE OF 49 PATIENTS A DAY AND WHO PERFORM GYNECOLOGICAL EXAMINATIONS ON SCORES OF WOMEN ASSEMBLED IN A SINGLE ROOM AS PHYSICIANS SCRAMBLE TO MAINTAIN INCOMES IN THE FACE OF TOOLOW PERCAPITA REIMBURSEMENTS BECAUSE PAYMENT IN JAPAN IS BASED ON PATIENT VISITS THE DOCTOR KEEPS THE AVERAGE LENGTH TO FIVE MINUTES AND THE JAPANESE ON AVERAGE MAKE 12 VISITS A YEAR OR ABOUT THREE TIMES AS MANY AS AMERICANS WHOSE AVERAGE VISIT LENGTH IS 15 TO 20 MINUTES THESE DECREASES IN CONVENIENCE FOR PATIENTS AND INCREASES IN PATIENT TIME AND TRAVEL COSTS POINTS OUT PATRICIA DANZON OF THE WHARTON SCHOOL ARE EXCLUDED FROM THE NATIONAL HEALTH ACCOUNTS AND FROM PUBLIC VISIBILITY INTERNATIONAL COST COMPARISONS ALSO IGNORE QUEUING AND OTHER FORMS OF RATIONING THAT REDUCE RECORDED COSTS BY FORCIBLY LIMITING THE AVAILABILITY OF THE SERVICE JOSEPH WHITE A BROOKINGS INSTITUTION RESEARCHER WHOSE COMPARISON OF AMERICA'S SYSTEM WITH THOSE OF SIX OTHER NATIONS LEADS HIM TO CONCLUDE THAT AMERICA'S HEALTHCARE SYSTEM MUST BE REFORMED NEVERTHELESS CONCEDES THAT OTHER COUNTRIES HAVE RESTRICTED CAPACITY AND FORCED PATIENTS TO ENDURE DELAYS THAT WOULD BE INTOLERABLE IN AMERICA AND GERMANY ACHIEVES ITS LOW COSTS BY LIMITING MALPRACTICE SUITS ESCHEWING EXTRAORDINARY LIFEPROLONGING MEASURES FOR THOSE JUDGED TO BE TERMINALLY ILL BUYING FEWER PIECES OF HIGHTECHNOLOGY EQUIPMENT THAN AMERICANS TYPICALLY USE AND BY PRICE CONTROLS EVEN SO COSTS ARE SOARING AND THE INSURANCE FUNDS ARE BROKE DESPITE PREMIUMS THAT COME TO 13 OF PAYROLLS INTERNATIONAL COMPARISONS OMIT SOCIETAL ATTITUDES THE HIGH EXPENDITURES IN THE US REFLECT A BASIC AMERICAN VALUE DAMN THE COSTS SAVE LIVES AND USE EXPENSIVE TECHNOLOGIES WHENEVER NECESSARY DON'T BLAME THIS ON YOUR DOCTOR EZEKIEL EMANUEL OF THE HARVARD MEDICAL SCHOOL NOTES THAT FEWER THAN ONE OUT OF 10 PHYSICIANS SURVEYED WOULD PUT GRANDMA ON A RESPIRATOR IF SHE HAD A STROKE WHEREAS 40 OF FAMILY MEMBERS WOULD HIGH HEALTH CARE COSTS IN AMERICA ALSO REFLECT ANOTHER DISTINCTIVE FEATURE OF OUR SOCIETY THE SOCIAL PATHOLOGY OF OUR UNDERCLASS PRESIDENT CLINTON POINTED THIS OUT IN OCTOBER TO AN ASSEMBLY OF DOCTORS AT JOHNS HOPKINS WE'LL NEVER GET THE COST OF HEALTH CARE DOWN TO WHERE IT IS IN OTHER COUNTRIES AS LONG AS WE HAVE HIGHER RATES OF TEEN PREGNANCIES AND HIGHER RATES OF LOWBIRTHWEIGHT BIRTHS AND HIGHER RATES OF AIDS AND MOST IMPORTANT OF ALL HIGHER RATES OF VIOLENCE AND HE MIGHT HAVE ADDED NOTHING IN HIS OWN HEALTH CARE PLAN ADDRESSES ANY OF THOSE PROBLEMS THE SECOND BASIS OF COMPARISON OFFERED TO SUPPORT THE CONTENTION THAT WE ARE SPENDING TOO MUCH ON HEALTH CARE IS OUR OWN PAST IN 1960 WE DEVOTED 5 OF GNP TO HEALTH CARE BY 1993 WE WERE UP TO 14 YET WE DO NOT COMPARE THE PRICE OF A MODERN AUTOMOBILE WITH THAT OF A MODEL T AND THEN COMPLAIN ABOUT HOW MUCH MORE THE NEW CAR COSTS SO WHY IGNORE QUALITY CHANGES IN MEDICAL CARE AN OPERATION TO REMOVE CATARACTS ONCE INVOLVED A HOSPITAL STAY OF TWO TO FOUR DAYS AND AN EVEN LONGER RECUPERATIVE PERIOD AT HOME THAT SURGERY IS NOW TYPICALLY DONE ON AN OUTPATIENT BASIS AS IRA COHEN FORMERLY CHIEF OF THE DIVISION OF GENERAL MEDICINE AT NEW YORK CITY'S BETH ISRAEL HOSPITAL TELLS US IN THE DAYS WHEN THE ELECTROCARDIOGRAM WAS THE SOLE DIAGNOSTIC TOOL THE VICTIM OF A HEART ATTACK COULD COUNT ON A FOUR TO SIXWEEK HOSPITAL STAY NOW IMPROVED DIAGNOSTIC TECHNIQUES AND EQUIPMENT PERMIT THE DOCTOR TO DISCHARGE THE TYPICAL HEART PATIENT IN A WEEK OR 10 DAYS YET ASTONISHINGLY THE REDUCTIONS IN SUFFERING AND LOST OUTPUT NOWHERE APPEAR IN OUR ACCOUNTING OF TRENDS IN HEALTH CARE COSTS NOR CAN WE CREDIT THE PROJECTIONS THAT BRING US FROM 14 TO 26 OF GNP BY 2030 SUCH PROJECTIONS ASSUME THAT RECENT TRENDS IN HEALTH CARE PRICES AND IN THE VOLUME OF SERVICES CONSUMED WILL CONTINUE INDEFINITELY BUT THIS IS UNLIKELY THE HEALTH CARE INDUSTRY IS OFFERING AN UNPRECEDENTED RANGE OF NEW PRODUCTS THEY WILL GO THROUGH A CYCLE OF RAPID GROWTH FOLLOWED BY FALLING PRICES AND COSTS AS COMPETITION AMONG SUPPLIERS EMERGES CONSUMERS BECOME MORE DISCRIMINATING AND COSTSAVING PRODUCTION AND APPLICATION TECHNIQUES ARE DEVELOPED IN ADDITION IF FACED WITH THE COSTS OF THEIR DECISIONS CONSUMERS MIGHT ADJUST REMEMBER THE ENERGY CRISIS IF THERE IS NO CRISIS IN HEALTH CARE COSTS IS THERE ONE IN INSURANCE COVERAGE HERE WE COME TO THE SECOND MAJOR STATISTIC DRIVING THE HEALTHCARE DEBATE AT SOME POINT IN 1991 THE LAST YEAR FOR WHICH COMPREHENSIVE DATA ARE AVAILABLE 37 MILLION PEOPLE LACKED MEDICAL INSURANCE IT SHOULD BE NOTED THAT THESE CITIZENS ARE NOT DENIED HEALTH CARE EMERGENCY ROOMS PROVIDE CARE TO ALL COMERS IN FACT NONPROFIT HOSPITALS 88 PERCENT OF THOSE IN THE US CANNOT LEGALLY TURN AWAY ANY PATIENT NEEDING MEDICAL CARE OR UNREASONABLY DENY ACCESS TO ALL THE MODERN TECHNOLOGY HOSPITALS HAVE AVAILABLE AND NOT JUST FOR THE DURATION OF THE EMERGENCY THE HOSPITAL IS OBLIGED TO SEE THE TREATMENT THROUGH PERCAPITA HEALTH CARE SPENDING ON THE UNINSURED PREMEDICARE POPULATION IS ABOUT 60 OF PERCAPITA EXPENDITURES ON THE INSURED POPULATION A LEVEL SUMPTUOUS BY THE STANDARDS OF OTHER INDUSTRIAL COUNTRIES NONETHELESS IF THE 37 MILLION FIGURE DID MEAN WHAT IT IS OFTEN TAKEN TO MEAN THAT 15 OF OUR POPULATION LIVES WITH THE UNNERVING AND CONTINUAL THREAT OF BEING UNABLE TO PAY FOR MEDICAL CARE THERE WOULD CERTAINLY BE GROUNDS FOR REVISING THE WAY WE PROVIDE MEDICAL SERVICES FORTUNATELY THERE IS LESS OF A PROBLEM HERE THAN MEETS THE EYE SOME OF THE UNINSURED ARE BETWEEN JOBS SOME ARE STUDENTS ENTERING THE LABOR MARKET KATHERINE SWARTZ OF THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH NOTES THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THE CHRONICALLY UNINSURED GROUP IN OUR SOCIETY NUMBERS CLOSER TO 55 MILLION THAN 37 MILLION PEOPLE AND PROBABLY FEWER THAN 55 MILLION ONLY 1 OF THOSE UNDER AGE 65 ARE UNINSURABLE ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE MORE THAN HALF OF THE UNINSURED ARE IN FAMILIES HEADED BY FULLTIME WORKERS 40 HAVE INCOMES IN EXCESS OF 20000 AND 10 HAVE INCOMES IN EXCESS OF 50000 ONLY 29 ARE BELOW THE POVERTY LEVEL AND THOSE WITH INCOMES BELOW 20000 SPEND SEVERAL TIMES AS MUCH ON ENTERTAINMENT ALCOHOL AND TOBACCO AS THEY DO ON HEALTH CARE FURTHERMORE 37 OF THE UNINSURED ARE UNDER AGE 25 A GENERALLY HEALTHY GROUP FOR WHOM HEALTH INSURANCE IS OFTEN NOT A COSTEFFECTIVE BUY IF WE PUT ALL THIS TOGETHER WE COME UP WITH A FIGURE OF PERHAPS 3 OF THE POPULATION WHO ALTHOUGH ABLE TO OBTAIN HEALTH CARE CANNOT OBTAIN AFFORDABLE HEALTH INSURANCE SHOULD WE PERFORM RADICAL SURGERY ON OUR HEALTH CARE SYSTEM FOR THE SAKE OF THAT 3 BEFORE ANSWERING WITH A RESOUNDING NO WE HAVE TO CONSIDER THE POSSIBILITY THAT WHEN THE UNINSURED ARE TREATED IN A HOSPITAL AND CANNOT PAY THE COST OF THAT TREATMENT IS LOADED ONTO THE REST OF US BUT EVEN IF CROSSSUBSIDIZATION FROM THE INSURED TO THE UNINSURED DOES OCCUR THE CURE IS SIMPLE SUBSIDIZE INSURANCE FOR THE TRULY POOR AND COMPEL PAYMENT BY THE VOLUNTARILY UNINSURED THERE ARE REFORMS THAT COULD AND SHOULD BE MADE WITHIN THE CONTEXT OF OUR PRESENT SYSTEM IN ADDITION TO SUBSIDIZING THE INVOLUNTARILY UNINSURED THE MOST IMPORTANT IS TO MAKE COVERAGE PORTABLE SO THAT THE LOSS OF A JOB DOES NOT DEPRIVE A WORKER OF HIS INSURANCE SUCH TWEAKS TO THE SYSTEM WOULD AVOID THE DISASTER IN STORE FOR US IF WE FOLLOW THE CLINTONS DOWN THE PATH TO A HEALTH CARE SYSTEM PRESIDED OVER BY THE SAME PEOPLE ALREADY DOING SUCH A WONDERFUL JOB DELIVERING OUR MAIL MR STELZER IS DIRECTOR OF REGULATORY POLICY STUDIES AT THE AMERICAN ENTERPRISE INSTITUTE THIS ARTICLE IS ADAPTED FROM THE CURRENT ISSUE OF COMMENTARY SEE RELATED LETTERS LETTERS TO THE EDITOR IT LOOKS LIKE A HEALTH CRISIS TO US WSJ FEB 9 1994 9401250037 YY94 MM02 9402090079 940126 TEXAS JOURNAL TEXAS MUTUAL FUNDS RETURNS ARE IN AND THEY'RE LOUSY THANKS TO HIGH COSTS AND SCARCITY OF TALENT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL THEY SAY EVERYTHING'S BIGGER IN TEXAS BUT TO LOOK AT THE LONGTERM RETURNS CHALKED UP BY TEXASBASED MUTUAL FUNDS YOU WOULD SWEAR THIS WAS RHODE ISLAND FOR THE PAST FIVE AND 10YEAR PERIODS MOST TEXAS EQUITY FUNDS UNDERPERFORMED THEIR NATIONAL PEER GROUPS ACCORDING TO AN ANALYSIS FOR TEXAS JOURNAL BY LIPPER ANALYTICAL SERVICES INC A SUMMIT NJ PUBLISHER OF MUTUALFUND DATA WHATEVER THE CATEGORY FEW OF THE ROUGHLY 80 FUNDS BASED HERE HAVE BEEN LONGTERM STANDOUTS AND IN MANY CASES THEIR PERFORMANCE HAS BEEN DOWNRIGHT PUNY CONSIDER AMERICAN CAPITAL ASSET MANAGEMENT INC'S GROWTH & INCOME FUND ALTHOUGH THE HOUSTON FUND'S AIM IS LONGTERM GROWTH ITS 190 CUMULATIVE RETURN FOR THE DECADE ENDED DEC 31 TRAILED ITS GROWTHFUND PEER GROUP BY ABOUT 50 PERCENTAGE POINTS HOUSTONBASED TEXAS COMMERCE BANCSHARES INC'S BALANCED FUND HAS LOOKED SIMILARLY ANEMIC WITH FIVEYEAR RETURNS OF 66 COMPARED WITH 88 FOR THE COMPARABLE LIPPER INDEX AND CAPSTONE ASSET MANAGEMENT INC'S US TREND FUND ALSO OUT OF HOUSTON TRAILED LIPPER'S GROWTHFUND INDEX BY MORE THAN 51 POINTS FOR THE 10YEAR PERIOD FOR TEXANS SUCH NUMBERS ARE MORE THAN A BLOW TO STATE PRIDE THEY'RE ALSO A BLOW TO THEIR WALLETS THAT'S BECAUSE ASIDE FROM A FEW NATIONALLY KNOWN MUTUAL FUNDS BASED HERE MOST TEXAS FUNDS GET THEIR MONEY FROM TEXANS SO WHY THE LACKLUSTER PERFORMANCE FOR STARTERS TEXAS HOSTS A LARGE NUMBER OF SMALL FUNDS WHOSE TINY ASSET BASES MEAN THEIR OVERHEAD IS RELATIVELY HIGH CUTTING INTO RETURNS SOME FUND MANAGERS ALSO SAY THEY DON'T AIM FOR THE FRONT OF THE PACK OPTING INSTEAD FOR LESSRISKY MORESTABLE INVESTMENTS AND CRITICS ARGUE THAT TEXAS FUNDS HAVE A HARD TIME ATTRACTING TOPRATE MONEY MANAGERS WHO INSTEAD GRAVITATE TOWARD MUTUALFUND MECCAS IN NEW YORK BOSTON AND PHILADELPHIA FOR WHATEVER REASONS THERE JUST HASN'T BEEN A LOT OF TALENT RUNNING TEXAS FUNDS SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO THIS DOESN'T MEAN THAT ALL TEXAS EQUITY FUNDS HAVE BEEN ROTTEN PERFORMERS SOME HAVE FARED WELL AND MANY OTHERS ARE IMPROVING INDEED IF YOU LOOK AT 1993 RETURNS ALONE THE PICTURE FOR TEXAS FUNDS IMPROVES SIGNIFICANTLY FOR EXAMPLE USGOLD SHARES A FUND MANAGED BY UNITED SERVICES ADVISORS INC OF SAN ANTONIO WAS THE SECONDBEST FUND IN THE COUNTRY LAST YEAR WITH A 124 RETURN ACCORDING TO LIPPER BUT A YEAR DOESN'T A MUTUALFUND STAR MAKE OVER THE FIVEYEAR PERIOD ENDED IN DECEMBER USGOLD SHARES RANKED AS THE SEVENTHWORST FUND IN THE COUNTRY WITH A TOTAL RETURN OF LESS THAN 1 OVER 10 YEARS THE FUND WAS FOURTH FROM THE BOTTOM SURE THERE WAS AN EXTENDED BEAR MARKET IN GOLD BUT LIPPER'S GOLD INDEX STILL MANAGED A CUMULATIVE 43 GAIN OVER THE FIVEYEAR PERIOD THUS FIVE AND 10YEAR NUMBERS OFFER A MORE MEANINGFUL GLIMPSE OF FUND PERFORMANCE AN INDICATION OF HOW WELL MANAGERS BATTLED A CHANGING ECONOMY BOOMING AND BUSTING INDUSTRIES AND BOTH THE MINIBEAR MARKET OF 1990 AND THE OCTOBER 1987 CRASH A KEY PROBLEM FOR TEXASBASED FUNDS IS THAT MOST OF THEM HAVE LESS THAN 200 MILLION IN ASSETS AND MANY DON'T EVEN REACH 20 MILLION THOSE ARE RELATIVELY SMALL NUMBERS IN THE MUTUALFUND GAME AND IT PRESENTS MANAGERS WITH A VARIETY OF CHALLENGES WHEN CONCORDE FINANCIAL CORP OF DALLAS LAUNCHED ITS ONLY FUND VALUE FUND IN 1987 IT COULDN'T FIND LOCAL EXPERTS IN FUND MARKETING OR CUSTODIAL AND LEGAL SERVICES SAYS ELIZABETH FOSTER ANALYST/SECRETARY FOR THE FUND VALUE FUND A GROWTH AND INCOME FUND WITH 126 MILLION IN ASSETS HAD AN AVERAGE ANNUAL RETURN OF 71 FOR THE FIVE YEARS ENDED IN DECEMBER NEARLY HALF THE 133 PEERGROUP AVERAGE TEXAS IS BEHIND THE LEARNING CURVE AND THAT CERTAINLY MAKES IT MORE DIFFICULT FOR US MS FOSTER SAYS THE RESULT IS THAT SMALL OUTFITS SUCH AS CONCORDE OR HERBERT R SMITH INC WHICH RUNS THE AVONDALE TOTAL RETURN FUND OUT OF WICHITA FALLS CAN'T SPREAD OVERHEAD AMONG SEVERAL FUNDS AND THEY CONTRACT OUT FOR MUCH IF NOT ALL OF THEIR BACKOFFICE NEEDS IN THE CASE OF AVONDALE A BALANCED FUND WITH JUST 8 MILLION IN ASSETS AND ABOUT 130 SHAREHOLDERS THE EXPENSES OF RUNNING THE FUND APPROACH 18 MORE THAN DOUBLE THE AVERAGE FOR LARGE BALANCED FUNDS AND IT USED TO BE MUCH WORSE AVONDALE WHICH RETURNED ABOUT 88 ANNUALLY OVER THE PAST FIVE YEARS COMPARED WITH 134 FOR LIPPER'S BALANCEDFUND INDEX HAS TRIMMED ITS COSTS 25 IN RECENT YEARS BY LINKING UP WITH PROFESSIONALLY MANAGED PORTFOLIOS A NEW YORK UMBRELLA GROUP OF SMALL FUNDS THAT NEGOTIATES FOR REDUCED RATES FOR PRINTING ACCOUNTING LEGAL AND OTHER SERVICES ANOTHER HANDICAP FOR THE SMALL TEXAS FUNDS NO DEPTH WITH SMALL FUNDS INVESTORS ARE BUYING ONE PERSON NOT A RESEARCH TEAM SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO WHILE LARGER FUND COMPANIES SUCH AS SAN ANTONIO'S USAA INVESTMENT MANAGEMENT INC EMPLOY A DOZEN OR MORE EQUITYRESEARCH ANALYSTS SMALL FUNDS CAN'T AFFORD SUCH A LUXURY AS SUCH RETURNS CAN SUFFER SIMPLY BECAUSE PORTFOLIO MANAGERS DON'T HAVE TIME TO ANALYZE AS MANY OPTIONS SAYS MR PERRITT THE NEWSLETTER EDITOR SAYS HERBERT SMITH WHO NOT ONLY HEADS UP HIS EPONYMOUS MONEYMANAGEMENT FIRM BUT ALSO SERVES AS AVONDALE'S PORTFOLIO MANAGER AND ITS FUNDAMENTAL AND TECHNICAL ANALYST YOU'RE TALKING TO THE RESEARCH DEPARTMENT BUT SIZE DOESN'T ENTIRELY EXPLAIN TEXAS' DISMAL MUTUALFUND RECORD SOME OF THE BIGGEST AND BESTKNOWN TEXAS MUTUAL FUNDS HAVE FARED POORLY AS WELL FOR INSTANCE GIANT AMERICAN CAPITAL WHOSE NINE EQUITY FUNDS MANAGE MORE THAN 95 BILLION COULD ONLY MUSTER ONE FUND THAT BEAT ITS LIPPER BENCHMARK IN THE PAST DECADE THAT FUND EMERGING GROWTHA FUND WHICH BEAT THE MARKET AVERAGE BY 142 PERCENTAGE POINTS ALAN SACHTLEBEN AMERICAN CAPITAL'S CHIEF INVESTMENT OFFICER FOR EQUITIES SAYS THE COMPANY'S UNDERPERFORMANCE IS PARTLY DUE TO ITS CONSERVATIVE PHILOSOPHY WE DON'T WANT TO SHOOT THE LIGHTS OUT ONE YEAR ONLY TO RISK FALLING ON OUR FACE THE NEXT YEAR HE SAYS YOU LOSE SHAREHOLDERS IN THE WHIPSAW PERHAPS BUT MR SACHTLEBEN ALSO CONCEDES THAT AMERICAN CAPITAL WISHES IT HAD SHOT OUT A FEW MORE LIGHTS THAN IT DID AND HE SAYS IT IS DETERMINED TO TURN THINGS AROUND ONE BRIGHT SPOT AMERICAN CAPITAL'S EQUITY INCOMEA FUND FOR THE FIVE YEARS THROUGH 1988 EQUITY INCOME TYPICALLY SAT IN THE BOTTOM HALF OF MORNINGSTAR'S PERFORMANCE QUARTILE RANKINGS THE FUND ROUTINELY HELD LARGE BETS IN A SINGLE SECTOR A TYPICAL INVESTMENT A 45 STAKE IN MANUFACTURERS HANOVER CORP COUPLED WITH A 4 STAKE IN CHEMICAL BANKING CORP AS A RESULT POOR ECONOMIC NEWS OR THE CRASH OF A STOCK WITHIN A SECTOR COULD AND DID DRAG DOWN LARGE CHUNKS OF THE PORTFOLIO SO IN 1990 THE COMPANY NAMED JAMES GILLIGAN A SECURITIES ANALYST WITH NINE YEARS EXPERIENCE AT AMERICAN CAPITAL AS HEAD OF THE FUND THE 35YEAROLD MR GILLIGAN SPENT HIS FIRST FEW WEEKS TURNING OVER ONETHIRD OF THE PORTFOLIO MOVING OUT OF LARGE FINANCIAL AND UTILITYSECTOR BETS AND TOWARD A MORE DIVERSIFIED AND LESS CONCENTRATED PORTFOLIO OF CONSUMER AND HEALTHCARE STOCKS INCLUDING MCDONALD'S CORP SARA LEE CORP AND HUMANA INC UNDER HIS COMMAND EQUITY INCOME'S PERFORMANCE NEVER HAS SLIPPED BELOW MORNINGSTAR'S SECOND QUARTILE AND OVER THE FIVE YEARS ENDED IN DECEMBER THE FUND BEAT ITS LIPPER INDEX BY NEARLY 11 PERCENTAGE POINTS GOOD SERVICE BUT USAA INVESTMENT MANAGEMENT CO WITH 35 BILLION IN EQUITY ASSETS ALSO HAS GRAPPLED WITH ITS SHARE OF LAGGARD FUNDS TO BE SURE THE COMPANY HAS LONG CULTIVATED A REPUTATION FOR HAVING GOOD SERVICE AND SOME OF THE INDUSTRY'S LOWEST EXPENSE RATIOS WHICH EASE SOME OF THE PRESSURE TO PRODUCE STELLAR RETURNS BUT IN RECENT YEARS THE PERFORMANCE OF SOME FUNDS HAS DETERIORATED EVEN BY USAA'S STANDARDS USAA'S GOLD AGGRESSIVE GROWTH AND CORNERSTONE OFFERINGS ALL TRAILED THEIR RESPECTIVE BENCHMARK INDEXES BY DOUBLEDIGIT PERCENTAGE POINTS FOR THE FIVE YEARS ENDED IN DECEMBER THROUGH 10 YEARS THE COMPANY'S GROWTH FUND TRAILED THE BENCHMARK BY 70 PERCENTAGE POINTS WITH 20/20 HINDSIGHT WE CAN SAY THAT WE WERE INVESTED IN THE WRONG STOCKS IN THE WRONG INDUSTRIES SAYS MICHAEL ROTH PRESIDENT OF THE COMPANY'S MUTUALFUND ARM AN EXAMPLE THE COMPANY'S MUTUALAGGRESSIVE GROWTH FUND'S 38 STAKE IN HEALTHCARE STOCKS IN 1991 THOUGH THAT PROVED BENEFICIAL THAT YEAR THE FUND HELD ON FOR THE ROUND TRIP WHEN THOSE STOCKS BURNED IN 1992 TO BREAK WITH THE PAST USAA PLACED BILL FRIES WHO HAS BEEN WITH USAA AS A STOCK PICKER AND ANALYST FOR 19 YEARS IN CHARGE OF MUTUALAGGRESSIVE ON JAN 1 IN HIS FIRST FEW WEEKS HE HAS COMPILED A LIST OF VALUEORIENTED AND CYCLICAL STOCKS ABOUT A THIRD OF THE PORTFOLIO THAT WILL SUPPLY THE CASH NEEDED TO BRING A GROWTH BENT TO THE FUND WE'RE GOING TO TURN THIS FUND AROUND MR FRIES SAYS HERE'S A LOOK AT THE RETURNS ON SELECTED TEXASBASED MUTUAL FUNDS FOR THE FIVE AND 10 YEARS ENDED IN DECEMBER THE RETURNS ARE COMPARED WITH LIPPER ANALYTICAL SERVICES INC'S INDEXES FOR FUNDS WITH SIMILAR INVESTMENT OBJECTIVES SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR TEXAS MUTUAL FUNDS TEN YEARS ISN'T FAIR AND TEXAS JOURNAL LETTERS TO THE EDITOR HOW ABOUT LOOKING AT THREE YEARS WSJ FEB 9 1994 CORRECTIONS & AMPLIFICATIONS USAA INVESTMENT MANAGEMENT CO'S CORNERSTONE FUND BEAT THE LIPPER ANALYTICAL SERVICES INC INDEX OF GLOBAL FLEXIBLE MUTUAL FUNDS BY NEARLY 14 PERCENTAGE POINTS ON A FIVEYEAR BASIS AN ARTICLE IN THE JAN 26 ISSUE OF TEXAS JOURNAL INCORRECTLY COMPARED THE FUND TO LIPPER'S BALANCED FUND INDEX WSJ FEB 9 1994 9401260126 YY94 MM02