MAYBE THE RESUME SHOULD GO THE WAY OF THE DINOSAUR TO ME A RESUME IS A DESELECTION DEVICE SAYS DENNIS LUNDER WHO AS HEAD OF MARKETING COMMUNICATIONS AT AMERICAN GREETINGS CORP IN CLEVELAND MANAGES ABOUT 80 PEOPLE MY METHOD IS RADICALLY DIFFERENT IN SIX JOB HUNTS OVER NEARLY 30 YEARS MR LUNDER SAYS HE SENT OUT THOUSANDS OF RESUMES AT A TIME WITH LITTLE EFFECT NOW AS A MENTOR IN HUDSON JOB SEARCH A VOLUNTEER PROGRAM IN OHIO FOR UNEMPLOYED EXECUTIVES MR LUNDER PREACHES THIS GOSPEL TREAT YOUR SEARCH AS FULLTIME WORK EACH WEEKDAY SHOULD BE STRUCTURED AS A WORKDAY WITH A SCHEDULE OF EVENTS COMPILE A LIST OF THE 20 COMPANIES YOU WOULD MOST LIKE TO WORK FOR AND THEN RESEARCH THEM CALL THE SECRETARY OF THE EXECUTIVE WHO IS MOST LIKELY TO HIRE YOU AND ASK FOR THE ANNUAL REPORT AND OTHER CORPORATE MATERIALS KEEP RESEARCHING MR LUNDER WENT TO STORES THAT SOLD AMERICAN GREETINGS CARDS AND PRODUCTS ASKING THE STORE MANAGER HOW IS THE SERVICE ARE YOU HAPPY WITH AMERICAN GREETINGS PRODUCTS HOW CAN THINGS BE IMPROVED HE ALSO RECEIVED PERMISSION TO ACCOMPANY A SALES REP FOR A DAY WRITE A ONEPAGE PERSONAL MARKETING LETTER SELLING YOURSELF TO THE PERSON WHO IS HIRING WHICH ISN'T NECESSARILY THE COMPANY'S HUMANRESOURCES EXECUTIVE EXPLAIN WHAT YOU HAVE LEARNED INCLUDING SOME FLATTERING COMMENTS ON THE COMPANY'S INNOVATIONS AND HOW YOU WOULD FIT IN ENCLOSING A RESUME IS A ONEWAY TICKET TO THE PERSONNEL DEPARTMENT IF ASKED FOR A RESUME TELL THEM YOU NEED A WEEK TO UPDATE IT THEN TRY TO FOCUS ON ASPECTS OF YOUR CAREER THAT FIT WHAT THE COMPANY IS LOOKING FOR TRY TO SET UP A 20MINUTE INFORMATIONAL MEETING WITH THE HIRING PERSON DON'T CALL IT AN INTERVIEW IF YOU GET THE PERSON'S VOICE MAIL SUGGEST A TIME LIKE 7 AM TOMORROW TELL THE HIRING PERSON WHAT YOU KNOW AND ADMIRE ABOUT THE COMPANY AND ABOUT YOUR SKILLS HAVE FIVE SMART QUESTIONS ON THE COMPANY'S STRATEGY ONLY AT THE END OF THE MEETING SUGGEST YOU ARE LOOKING FOR WORK MR LUNDER ADVISES LISTENING TO MOTIVATIONAL TAPES TO KEEP SPIRITS AND ENERGY HIGH AND CHECKING WHETHER YOUR TARGET HAS MORE JOB CUTS IN ITS FUTURE YOU WOULDN'T WANT TO HAVE TO DO THIS AGAIN 9402080174 940208 WHO'S NEWS CABLEVISION SYSTEMS CORP CABLEVISION SYSTEMS CORP WOODBURY NY JAMES A KOFALT 51 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CABLETELEVISION OPERATOR EFFECTIVE FEB 28 A SUCCESSOR HASN'T BEEN NAMED MR KOFALT WAS WITH THE COMPANY 17 YEARS AND SAID HE WILL EXPLORE NEW OPPORTUNITIES 9402080173 940208 POLITICS & POLICY CLINTON'S HEALTH PLAN SHOULD BE PART OF BUDGET CBO IS EXPECTED TO PROPOSE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE PROTESTS FROM THE WHITE HOUSE THE CONGRESSIONAL BUDGET OFFICE IS EXPECTED TO RECOMMEND TODAY THAT PRESIDENT CLINTON'S HEALTHCARE PLAN BE COUNTED AS PART OF THE FEDERAL BUDGET CONGRESSIONAL AND ADMINISTRATION OFFICIALS SAID THE CBO WOULDN'T COMMENT BUT THE WHITE HOUSE STUNG LAST WEEK BY CRITICISM OF ITS PLAN FROM BUSINESS GROUPS BRACED FOR MORE POLITICAL FALLOUT FROM THE ANTICIPATED CBO DECISION AND REPUBLICANS SEIZED ON THE EXPECTED DEVELOPMENT AS FURTHER EVIDENCE THAT THE PROPOSAL IS IN TROUBLE THIS IS A REAL BODY BLOW SAID REP JOHN KASICH R OHIO RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE THE EXPECTED DECISION WAS FIRST REPORTED BY USA TODAY THE ULTIMATE IMPACT OF THE CBO'S RECOMMENDATION WHICH DIRECTOR ROBERT REISCHAUER IS EXPECTED TO DISCLOSE IN TESTIMONY BEFORE THE HOUSE WAYS AND MEANS COMMITTEE ISN'T CLEAR TREATING THE HEALTHCARE PLAN AS PART OF THE BUDGET COULD MEAN THAT SPENDING ON INSURANCE POLICIES BY FEDERALLY ESTABLISHED HEALTH ALLIANCES WOULD BE COUNTED AS FEDERAL OUTLAYS AND PREMIUMS THEY COLLECT FROM EMPLOYERS AND INDIVIDUALS WOULD BE COUNTED AS RECEIPTS THE ADMINISTRATION INSISTS THAT THE PLAN OVERALL WOULDN'T EXPAND THE DEFICIT IN THE SHORT RUN AND WOULD NARROW IT IN THE LONG RUN WHAT REPUBLICANS WANT MOST DEARLY IS FOR MR REISCHAUER TO LABEL MANDATED INSURANCE PREMIUMS WHICH WOULD RUN UP TO 79 OF PAYROLL FOR LARGE BUSINESSES AS TAXES MR REISCHAUER ISN'T EXPECTED TO GO THAT FAR HOWEVER IF THE CBO DEFINES THE PREMIUMS AS SOMETHING ELSE MEDICARE PREMIUMS FOR EXAMPLE ARE NOW CLASSIFIED SIMPLY AS RECEIPTS TO OFFSET GOVERNMENT HEALTH SPENDING THE GOP ARGUMENT WOULD BECOME MORE COMPLICATED THE CBO ONLY MAKES RECOMMENDATIONS TO CONGRESS AND ITS ANALYSES TURN ON TECHNICAL FACTORS IMPENETRABLE TO MOST LAWMAKERS NOT TO MENTION ORDINARY AMERICANS BUT MR CLINTON HIMSELF HAS ENHANCED THE CBO'S INFLUENCE BY CITING IT AS AN IMPARTIAL ARBITER OF FISCAL DISPUTES HOPING TO BLUNT BAD NEWS ADMINISTRATION OFFICIALS AND CONGRESSIONAL DEMOCRATS SAID THEY EXPECT THE CBO TO BUTTRESS THE PRESIDENT'S ESTIMATES OF HIS PLAN'S FINANCIAL IMPACT IN ADDITION MR CLINTON'S ALLIES ON CAPITOL HILL DISMISSED THE DEVELOPMENT AS A SHORTTERM PUBLIC RELATIONS COUP FOR THE GOP THAT WILL QUICKLY FADE REPUBLICANS ARE GOING TO MAKE HAY FOR 24 HOURS AND THEN IT ISN'T GOING TO MATTER SAID ONE DEMOCRATIC LEADERSHIP AIDE WHITE HOUSE OFFICIALS FOR THEIR PART SAID THEY WILL CONTINUE TO FOCUS ON THE PURPOSE OF THE SOCALLED EMPLOYER MANDATE TO GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS AND NOT THE TECHNICAL ACCOUNTING OF IT THIS DEBATE SHOULD BE ABOUT PROVIDING EVERY AMERICAN WITH GUARANTEED PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY SAID WHITE HOUSE SPOKESMAN ROBERT BOORSTIN WE DON'T WANT TO BE TRAPPED BY SCOREKEEPING ISSUES WHEN THE HEALTH OF THE AMERICAN PEOPLE IS AT STAKE STILL THE ANTICIPATED CBO DECISION IS YET ANOTHER BLOW TO A WHITE HOUSE PLAN THAT WAS BATTERED LAST WEEK BY THE BUSINESS ROUNDTABLE THE US CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS IT MAY FURTHER ENHANCE THE ATTRACTIVENESS OF AN ALTERNATIVE OFFERED BY REP JIM COOPER D TENN WHICH WOULDN'T IMPOSE INSURANCE PREMIUMS ON EMPLOYERS BUT LIBERALS MAY EMBRACE THE ANALYSIS AS A STEP TOWARD ERASING THE DISTINCTION BETWEEN MR CLINTON'S PLAN FOR GUARANTEED PRIVATE INSURANCE AND A GOVERNMENTRUN SINGLEPAYER ALTERNATIVE IF THEY SAY IT'S ON BUDGET THE ADMINISTRATION WILL BE UNHAPPY BECAUSE THEY ARE TRYING TO SAY THIS IS NOT A BIG GOVERNMENT PROGRAM AND IS ALL FREE ENTERPRISE SAID REP FORTNEY PETE STARK D CALIF WHO HEADS A KEY HEALTH SUBCOMMITTEE WITH THE CBO ANALYSIS BEHIND THEM MR STARK ADDED LAWMAKERS CAN MOVE BEYOND TECHNICAL ANALYSIS AND WRITE A BILL 9402080172 940208 SEC EXTENDS DEADLINE FOR COMMENT ON PLAN ON BOND DEALER GIFTS WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION EXTENDED THE PUBLIC COMMENT PERIOD ON A CONTROVERSIAL PROPOSAL DESIGNED TO SEVER LINKS BETWEEN MUNICIPAL BOND DEALERS' POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS AND THE AWARDING OF BOND BUSINESS THE NEW MARCH 11 DEADLINE REPRESENTS A ONEMONTH EXTENSION FOR COMMENT ON THE MUNICIPAL SECURITIES RULEMAKING BOARD'S PROPOSAL TO END THE PAYTOPLAY PRACTICE IT ALSO REPRESENTS REGULATORS' RECOGNITION THAT THE PROPOSAL IS GENERATING STRONG AND GROWING OPPOSITION AMONG STATE AND LOCAL OFFICIALS SEVERAL GROUPS INCLUDING THE GOVERNMENT FINANCE OFFICERS ASSOCIATION AND NATIONAL LEAGUE OF CITIES COMPLAINED THAT THE FEB 11 DEADLINE FOR COMMENTS SET BY THE SEC DIDN'T PROVIDE ENOUGH TIME TO ASSESS THE PLAN THE EXTENSION WAS REQUESTED BY THE RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT AND WAS APPROVED BY THE SEC SEPARATELY THE LEAGUE CHALLENGED THE SEC TO DOCUMENT THE NEED FOR THE PROPOSED RULE WHICH WOULD BAR DEALERS FROM DOING BUSINESS WITH A BOND ISSUER WITHIN TWO YEARS OF EITHER THE DEALER ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL FINANCE PROFESSIONALS MAKING A POLITICAL GIFT TO AN ISSUER OFFICIAL 9402080171 940208 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS THIS ENERGY AND NATURALRESOURCES CONCERN NAMED JOHN W KENNEDY PRESIDENT OF ITS NEW LONDONBASED UNIT MR KENNEDY 43 YEARS OLD WILL HEAD THE DRESSER ENGINEERED DRILLING SERVICES DIVISION WHICH WILL COORDINATE THE COMPANY'S EFFORTS TO PROVIDE CUSTOMERS WITH EFFICIENT DRILLING PROGRAMS MR KENNEDY WAS FORMERLY PRESIDENT OF ATLAS WIRELINE A UNIT OF WESTERN ATLAS INTERNATIONAL INC UNTIL DRESSER SOLD ITS INTEREST IN THE OILSERVICES VENTURE TO THE MAJORITY OWNER LITTON INDUSTRIES INC DRESSER ALSO PROMOTED JAMES L BRYAN 57 TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OPERATIONS FROM VICE PRESIDENT OPERATIONS OF THE COMPANY'S OILFIELDSERVICES SEGMENT 9402080170 940208 WHO'S NEWS BRUNSWICK CORP BRUNSWICK CORP LAKE FOREST ILL JIM W DAWSON 59 YEARS OLD PRESIDENT OF THE COMPANY'S ZEBCO/MOTORGUIDE DIVISION IN TULSA OKLA WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS MAKER OF MARINE PLEASURE BOATING AND RECREATIONAL PRODUCTS 9402080169 940208 WHO'S NEWS GENERAL INSTRUMENT CORP GENERAL INSTRUMENT CORP CHICAGO PAUL G STERN WAS NAMED A DIRECTOR OF THIS SUPPLIER OF EQUIPMENT TO THE CABLETELEVISION INDUSTRY INCREASING BOARD MEMBERSHIP TO 13 DR STERN 55 YEARS OLD IS A SPECIAL LIMITED PARTNER OF FORSTMANN LITTLE & CO AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHERN TELECOM LTD 9402080168 940208 BUSINESS BRIEFS ASTROTECH INTERNATIONAL CORP AGREED TO ACQUIRE CLOSELY HELD BROWNMINNEAPOLIS TANK & FABRICATING CO ST PAUL MINN FOR ABOUT 17 MILLION IN CASH AND STOCK CONTINGENT ON ASTROTECH OBTAINING THE NECESSARY FINANCING VENCOR INC ACQUIRED CLOSELY HELD CANDLE SUBACUTE SERVICES INC IRVINE CALIF TERMS WEREN'T DISCLOSED CONAGRA INC AND CARLBERG A/S OF COPENHAGEN WILL FORM A COMPANY TO BUILD AND OPERATE A BARLEYMALTING PLANT IN DENMARK TOTAL INVESTMENT IN THE PLANT WILL BE 29 MILLION GENERAL MOTORS CORP'S DELCO CHASSIS DIVISION COMPLETED THE SALE OF ITS AUTOMOTIVE ELECTRICAL PRODUCTS OPERATIONS AT DUNSTABLE BEDFORDSHIRE UK TO AUTOMOTIVE COMPONENTS DUNSTABLE LTD INGLES MARKETS INC WILL SPEND BETWEEN 40 MILLION AND 50 MILLION TO OPEN EIGHT TO 10 NEW SUPERMARKETS AND REMODEL EXISTING PROPERTIES IN THE CURRENT FISCAL YEAR 9402080167 940208 WHO'S NEWS MCGAW INC MCGAW INC IRVINE CALIF NORWICK GOODSPEED 44 YEARS OLD WAS NAMED CHIEF EXECUTIVE OF THIS PROVIDER OF IV THERAPY PRODUCTS AND SERVICES TO HOSPITALS MR GOODSPEED WHO IS ALSO PRESIDENT SUCCEEDS JAMES M SWEENEY 51 WHO RESIGNED IN ANTICIPATION OF MCGAW'S MERGER WITH IVAX CORP A MIAMI SPECIALTY CHEMICAL AND PHARMACEUTICAL CONCERN 9402080166 940208 WHO'S NEWS SUNGLASS HUT INTERNATIONAL INC SUNGLASS HUT INTERNATIONAL INC MIAMI LARRY G PETERSEN 47 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SUNGLASS RETAILER MR PETERSEN HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CARTER HAWLEY HALE STORES HE SUCCEEDS ACTING CHIEF FINANCIAL OFFICER JIM HAUSLEIN WHO REMAINS CHAIRMAN OF THE COMPANY 9402080165 940208 WHO'S NEWS HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD CONN ROBERT W TRAINER 44 YEARS OLD AND SENIOR VICE PRESIDENT OF THIS INSURANCE COMPANY WAS NAMED TO THE ADDED POSTS OF CHIEF FINANCIAL OFFICER AND TREASURER EFFECTIVE JAN 28 HE SUCCEEDED KEITH S HYNES 41 WHO LEFT THE COMPANY ON THAT DATE MR HYNES SAID THE COMPANY'S NEW PRESIDENT GORDON KREH IS BUILDING A NEW MANAGEMENT TEAM AND HE DID NOT SEE ME ON HIS MANAGEMENT TEAM HE WOULDN'T COMMENT FURTHER MR KREH WAS NAMED PRESIDENT IN SEPTEMBER 9402080163 940208 ECONOMY COMPANIES UNIONS LENGTHEN CONTRACTS ENCOURAGED BY STABLE LOW INFLATION BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS IND WORKERS AT CUMMINS ENGINE CO'S MAIN PLANT HERE DON'T HAVE TO WORRY ABOUT NEGOTIATING A NEW LABOR CONTRACT BY THE TIME THEIR PACT WITH THE DIESELENGINE MAKER EXPIRES IN THE YEAR 2004 ALL 1800 OF THEM WILL BE ELIGIBLE TO RETIRE WE DIDN'T WANT PEOPLE LAID OFF IN THE PAST TO GET LAID OFF AGAIN SAYS LARRY NEIHART THE UNION PRESIDENT WHO HELPED NEGOTIATE LAST YEAR'S 11YEAR CONTRACT WITH CUMMINS IN RETURN FOR JOB SECURITY AND HIGHER PENSIONS FOR ABOUT 3000 WORKERS AT SIX INDIANA PLANTS THE DIESEL WORKERS UNION MADE CONCESSIONS ON HEALTH CARE AND GRANTED YEARS OF LABOR PEACE MOST NEW LABOR CONTRACTS STILL EXPIRE IN THIS CENTURY WITH THREE YEARS THE MOST COMMON DURATION BUT A GROWING NUMBER OF UNIONS AND EMPLOYERS ARE FINDING THAT STEADY LOW INFLATION MAKES IT EASIER TO AGREE TO LONGER CONTRACTS BECAUSE IT MAKES COSTS FOR COMPANIES AND LIVING EXPENSES FOR WORKERS MORE PREDICTABLE FIVEYEAR AGREEMENTS AT TWO WHIRLPOOL CORP PLANTS SHOW A HIGHER LEVEL OF TRUST MAINTAINS WILLIAM MAROHN PRESIDENT AND CHIEF OPERATING OFFICER OF THE BENTON HARBOR MICH APPLIANCE MAKER THESE CONTRACTS ALSO INDICATE THE REALITY OF GLOBAL COMPETITION AND THE REDUCED CLOUT OF LABOR WITH FOREIGN COMPETITORS READY TO STEP IN MANY COMPANIES SAY THEY CAN'T AFFORD TO GRANT BIG WAGE INCREASES OR COSTLY NEW BENEFITS FOR UNIONS THERE'S LESS INCENTIVE FOR A QUICK RETURN TO THE BARGAINING TABLE IF THEY CAN'T EASILY COME AWAY WITH ECONOMIC GAINS THE LABOR DEPARTMENT SAID RECENTLY THAT THE AVERAGE CONTRACT NEGOTIATED IN 1993 WAS FOR 358 MONTHS THE HIGHEST SINCE THE DEPARTMENT BEGAN KEEPING SUCH FIGURES IN 1972 THE STATISTICS MOST LIKELY UNDERSTATE CONTRACT DURATION THE LABOR DEPARTMENT FOR EXAMPLE COUNTS RECENT SIXYEAR AGREEMENTS IN THE STEEL INDUSTRY AS THREE YEARS BECAUSE WAGES ARE OPEN FOR NEGOTIATION HALFWAY THROUGH THE CONTRACT BUT THE WORKERS CAN'T STRIKE AND DIFFERENCES ARE TO BE SETTLED THROUGH BINDING ARBITRATION IT ALL RELATES TO JOB SECURITY SAYS GARY HUBBARD SPOKESMAN FOR THE UNITED STEELWORKERS OF AMERICA WHILE HE SAYS HIS UNION DOESN'T FAVOR LONGER CONTRACTS ALONE IT WILL AGREE TO THEM IN RETURN FOR ITEMS SUCH AS CLAUSES BARRING LAYOFFS AND A GREATER SAY IN DECISIONMAKING AT THE STEEL COMPANIES THE APPEAL TO THE STEELMAKERS IS STEADY PRODUCTION IN THE PAST THE MERE THREAT OF A STRIKE CAUSED CUSTOMERS TO STOCKPILE STEEL ONLY TO CUT ORDERS AFTER A SETTLEMENT WAS REACHED OTHERS TOOK BUSINESS ELSEWHERE SOME CUSTOMERS WOULD SIMPLY START PLACING ORDERS WITH FOREIGNERS SAYS DICK COFFEE VICE PRESIDENT FOR HUMAN RESOURCES AT NATIONAL STEEL CORP IN MISHAWAKA IND BUT COMPANIES ALSO LIKE THE PROMISE OF COOPERATION IN EFFORTS TO BOOST PRODUCTIVITY AT NATIONAL STEEL SAYS MR COFFEE COOPERATION IS A STRATEGIC ISSUE A MAJOR GOAL FOR CUMMINS IN ITS 11YEAR PACT WITH THE DIESEL WORKERS UNION WAS THE RIGHT TO MOVE TO A TEAMBASED WORK SYSTEM STARTING IN 1996 THE SYSTEM HAS BROUGHT FLEXIBILITY AND COST SAVINGS AT OTHER CUMMINS PLANTS WHERE IT ALREADY IS IN PLACE STILL LONGTERM CONTRACTS CARRY OBVIOUS RISKS IF COMPANIES PERFORM BETTER THAN EXPECTED UNIONS CAN'T RETURN TO THE BARGAINING TABLE TO NEGOTIATE CONTRACT IMPROVEMENTS IN NOVEMBER THE TEAMSTERS UNION RATIFIED A FOURYEAR AGREEMENT COVERING 165000 WORKERS AT UNITED PARCEL SERVICE ENDING A LONG HISTORY OF THREEYEAR DEALS BUT THE UNION REJECTED THE NOTION OF A SIXYEAR AGREEMENT SAYS A SPOKESMAN BECAUSE THE WORLD CAN CHANGE TREMENDOUSLY IN THAT TIME BUSINESSES CAN BE HURT IF SALES TURN DOWN AND THEY'RE LOCKED INTO AGREEMENTS THEY CAN'T AFFORD A CUMMINS EXECUTIVE SAYS COMPANY OFFICIALS ARGUED STRENUOUSLY AMONG THEMSELVES WHETHER THEY SHOULD FORGE AN 11YEAR PACT WITH THE DIESEL WORKERS IF TIMES GET TOUGH AT NATIONAL STEEL YOU DON'T HAVE A REAL OPPORTUNITY TO GET BACK IN AND BARGAIN SOMETHING THAT GIVES YOU RELIEF SAYS MR COFFEE THE SAFETY VALVE HE SAYS IS THE HOPE THAT THE UNION WOULD RENEGOTIATE BEFORE PUTTING THE COMPANY IN DANGER SOME THINK THE TRADITIONAL VIEW THAT LONGER CONTRACTS FAVOR MANAGEMENT IS OUTDATED WITH SHORTER CONTRACTS UNIONS ARE ALWAYS IN A REACTIVE CRISIS MODE ARGUES JOSEPH UEHLEIN AN OFFICIAL IN THE AFLCIO'S INDUSTRIAL UNION DEPARTMENT WITH MORE TIME BETWEEN NEGOTIATIONS UNIONS CAN FOCUS ON PRIORITIES SUCH AS ORGANIZING NEW MEMBERS UNITED MINE WORKERS PRESIDENT RICHARD TRUMKA VOWS TO DO JUST THAT NOW THAT THE UNION HAS SECURED FIVEYEAR DEALS WITH COAL COMPANIES 9402080162 940208 WHO'S NEWS GRAND MET'S MARTIN STEPS DOWN TO FORM VENTURE WITH KKR LONDON IAN MARTIN PASSED OVER LAST YEAR FOR THE CHIEF EXECUTIVE OFFICER'S JOB AT GRAND METROPOLITAN PLC HAS RESIGNED TO FORM AN INVESTMENT PARTNERSHIP WITH NEW YORKBASED FINANCIERS KOHLBERG KRAVIS ROBERTS & CO THE NEW FIRM CALLED GLENISLA GROUP WILL BECOME KKR'S FIRST PARTNERSHIP TO FOCUS EXCLUSIVELY ON EUROPEAN VENTURES SOMETHING THE NEW YORK FIRM HAS LONG BEEN INTERESTED IN BUT HERETOFORE UNSUCCESSFUL IN DOING GLENISLA EXPECTS TO BUY OR INVEST IN COMPANIES IN THE UK AND WESTERN EUROPE BUT MR MARTIN WHO HAD BEEN VICE CHAIRMAN OF GRAND MET SAID GLENISLA INITIALLY WON'T INVEST IN THE FOOD AND DRINKS INDUSTRY PARTLY BECAUSE OF A CONTRACTUAL AGREEMENT WITH GRAND MET THE 58YEAROLD MR MARTIN ONCE WIDELY EXPECTED TO BECOME CEO OF THE BRITISH FOOD AND DRINKS CONGLOMERATE WAS DENIED THE JOB WHEN GRAND MET'S BOARD INSTEAD CHOSE GEORGE BULL LAST SEPTEMBER GRAND MET CHAIRMAN SIR ALLEN SHEPPARD WHO WAS ALSO CHIEF EXECUTIVE AT THE TIME SAID MR BULL WAS SELECTED BECAUSE OF HIS EXPERTISE IN MARKETING AND BRAND MANAGEMENT MR MARTIN'S BACKGROUND IS IN FINANCE AFTER MR BULL'S APPOINTMENT MR MARTIN RESIGNED HIS POSITION AS GROUP MANAGING DIRECTOR AND CHIEF OPERATING OFFICER TO BECOME NONEXECUTIVE DEPUTY CHAIRMAN HE THEN MADE NO SECRET OF HIS DESIRE TO MOVE ON I WANTED SOMETHING WITH INTELLECTUAL STIMULATION AND EQUITY PARTICIPATION MR MARTIN SAID I HAVE A LOT OF GAS LEFT IN MY TANK AND THIS FITS IN COMPLETELY WITH THE KIND OF ENTREPRENEURIAL PROJECT I WANTED GRAND MET DECLINED TO COMMENT ON MR MARTIN'S DEPARTURE A KKR SPOKESWOMAN CONFIRMED THE DETAILS OF ITS PARTICIPATION IN THE NEW COMPANY BUT ITS EXECUTIVES WEREN'T AVAILABLE FOR COMMENT KKR IS EXPECTED TO FULLY FINANCE THE WORKING CAPITAL OF GLENISLA AND ITS DIRECTOR WILL MAKE SPECIFIC INVESTMENT DECISIONS JOINTLY WITH MR MARTIN INCLUDING MONEY FROM ITS CLIENTS THE NEW YORK FIRM CURRENTLY HAS ABOUT 2 BILLION AVAILABLE FOR INVESTMENT SOME OF WHICH WILL BE USED FOR GLENISLA PROJECTS THE COMPANY IS NAMED AFTER A VALLEY IN CENTRAL SCOTLAND THAT IS MR MARTIN'S FAVORITE AREA FOR SALMON FISHING 9402080161 940208 DELTA AIR LINES JANUARY TRAFFIC ATLANTA DELTA AIR LINES SAID JANUARY TRAFFIC INCREASED 51 THE AIRLINE REPORTED REVENUE PASSENGER MILES OF 625 BILLION UP FROM 595 BILLION FOR JANUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 5807 FROM 5383 9402080159 940208 WHO'S NEWS CANADIAN TIRE CORP CANADIAN TIRE CORP TORONTO H EARL JOUDRIE A DIRECTOR WAS NAMED NONEXECUTIVE CHAIRMAN SUCCEEDING HUGH L MACAULAY WHO WILL STEP DOWN FROM THE POSITION IN MAY MR MACAULAY 69 YEARS OLD WILL REMAIN ON THE BOARD MR JOUDRIE 59 ALSO IS CHAIRMAN OF SEVERAL OTHER CANADIAN COMPANIES CANADIAN TIRE IS A RETAILING CONCERN IN TORONTO THAT SELLS HARDWARE SPORTING GOODS AND AUTOMOTIVEREPAIR SERVICES 9402080157 940208 ENTERPRISE THE CLINTON BUDGET SBA TO RAISE FEES UNDER CLINTON PLAN BUT BUDGET WOULD ALSO EXPAND GUARANTEED LOAN PROGRAM BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF PRESIDENT CLINTON HAS HIS WAY FLEDGLING ENTREPRENEURS NO LONGER WILL GET FREE ADVICE AT SMALL BUSINESS DEVELOPMENT CENTERS BUT WILL HAVE TO PONY UP 15 AN HOUR UNDER THE 15 TRILLION BUDGET THAT THE PRESIDENT UNVEILED YESTERDAY THE SMALL BUSINESS ADMINISTRATION ALSO WOULD TRIPLE THE COST OF MOST OF ITS PUBLICATIONS TO 150 START CHARGING FOR USE OF ITS ELECTRONIC BULLETIN BOARD AND KILL A PROGRAM THAT GIVES GRANTS FOR SMALL COMPANIES TO PLANT TREES MR CLINTON ALSO WOULD INITIATE A FEE FOR REVISING SBAGUARANTEED LOANS AT THE SAME TIME HOWEVER HE PROPOSES TO SHARPLY INCREASE THE PROGRAM'S LOANS TO SMALL BUSINESSES SBA DEPUTY ADMINISTRATOR CASSANDRA PULLEY SAID THE PROPOSALS TO ADD OR INCREASE CERTAIN CHARGES FOR SMALL FIRMS RECOGNIZE THAT THE BEST THING THE GOVERNMENT CAN DO FOR SMALL BUSINESS AND THE ECONOMY IS TO REDUCE THE DEFICIT SHE SAID SOME OF THE NEW FEES THE AGENCY'S CLIENTS WILL FACE ARE STANDARD IN PRIVATE INDUSTRY THE ADMINISTRATION EXPECTS THAT THE PROPOSED CHARGE FOR COUNSELING AT THE SMALL BUSINESS DEVELOPMENT CENTERS LOCATED AT ABOUT 900 COLLEGES AROUND THE COUNTRY WOULD RAISE ABOUT 17 MILLION IN FISCAL 1995 THE BUDGET ALSO WOULD SET A FEE OF 75 PER LOAN FOR RESTRUCTURING OR REFINANCING SBAGUARANTEED LOANS A CHARGE OFFICIALS SAY WILL BRING 72 MILLION A YEAR INTO THE FEDERAL COFFERS AND USERS OF THE ELECTRONIC BULLETIN BOARD THAT THE AGENCY SET UP LAST YEAR WOULD PAY FOR MOST INFORMATION THEY GAIN FROM IT BY USING A PAYPERCALL 900 NUMBER SBA BORROWERS WOULD BENEFIT HOWEVER FROM AN INCREASE IN THE GUARANTEED LOAN FUND WHICH WOULD ALLOW THE AGENCY TO STAND BEHIND 9 BILLION IN SMALLBUSINESS LOANS NEXT FISCAL YEAR COMPARED WITH 7 BILLION THIS YEAR THE BUDGET ALSO PROPOSES DOUBLING FUNDS FOR THE SBA'S INVESTMENTCOMPANY PROGRAM TO 730 MILLION IN FISCAL 1995 THROUGH WHICH THE GOVERNMENT HELPS HIGHRISK VENTURES THE LOANGUARANTEE PROGRAM FOR REALESTATE DEVELOPMENT AND LARGE EQUIPMENT PURCHASES ALSO WOULD DOUBLE ALLOWING THE AGENCY TO OFFER 2 BILLION IN LOANS THE SBA WILL SPONSOR A PROGRAM IN THE ADMINISTRATION'S 12 NEW ENTERPRISE ZONES DESIGNED TO GIVE ECONOMIC HELP TO POOR URBAN AND RURAL AREAS IN WHAT IT CALLS ONESTOP CAPITAL SHOPS THE AGENCY WILL OFFER SEVERAL OF ITS CREDIT AND ADVISORY PROGRAMS THROUGH JOBCREATION CENTERS TO BE SET UP IN THOSE COMMUNITIES THE ADMINISTRATION BUDGETED LOAN GUARANTEES TO SUPPORT 375 MILLION IN LOANS AT THE CENTERS THE ADMINISTRATION SEEKS TO ELIMINATE A MUCHCRITICIZED 18 MILLION A YEAR PROGRAM IN WHICH THE SBA PROVIDES GRANTS FOR TREE PLANTING SINCE 1991 THE AGENCY HAS GIVEN STATE AND LOCAL GOVERNMENTS GRANTS TO PLANT TREES IN PARKS AND HIGHWAYS UNDER THE PROGRAM THE LOCAL OFFICIALS MUST MATCH THE FEDERAL GRANT AND THEN CONTRACT WITH SMALL NURSERY BUSINESSES TO PLANT THE TREES THE ADMINISTRATION WANTS TO DO AWAY WITH 13 MILLION IN OTHER SPECIAL PROGRAMS FUNDED THROUGH THE SBA BUDGET LAST YEAR ALTHOUGH THOSE BUDGET ITEMS ARE USUALLY SMALL LIKE THE TREEPLANTING PROGRAM THEY CAN BE HARD TO KILL BECAUSE THEY USUALLY ARE FUNDED AS A RESULT OF HARD BARGAINING BETWEEN MEMBERS OF CONGRESS OTHER ITEMS IN THE SBA BUDGET INCLUDE THE PROPOSED EXPANSION NATIONWIDE OF A REVOLVING LINEOFCREDIT PROGRAM THAT BEGAN AS A PILOT PROJECT IN NEW ENGLAND IN 1992 IF APPROVED BY CONGRESS THE PROGRAM COULD PROVIDE AS MUCH AS 1 BILLION TO PROVIDE SHORTTERM CREDIT FOR SMALL COMPANIES THE AVERAGE LINE OF CREDIT IN THE NEW ENGLAND PILOT PROGRAM WAS 250000 SBA OFFICIALS SAID IN ADDITION THE ADMINISTRATION PROPOSES SPENDING 30 MILLION TO COVER THE COST OF ALLOWING CERTAIN SMALLBUSINESS OWNERS TO REPAY WITHOUT A PENALTY LOANS THAT CARRY VERY HIGH INTEREST RATES UNDER A NOWDEFUNCT SBA LOAN PROGRAM THE LOANS WERE INTRODUCED IN 1979 AND CARRIED DOUBLEDIGIT INTEREST RATES THAT WERE AT THE TIME WELL BELOW THE PRIME RATE OF ABOUT 20 THE LOAN AGREEMENT INCLUDED AN OBSCURE CLAUSE CHARGING A HIGH PENALTY FOR PREPAYMENT WHICH THE 3000 BORROWERS HAVE SINCE ARGUED WAS UNFAIR 9402080156 940208 INTERNATIONAL ITALIAN BANK OFFICIAL SURRENDERS TO POLICE SPECIAL TO THE WALL STREET JOURNAL MILAN ROBERTO MAZZOTTA THE CHAIRMAN OF ITALY'S LARGEST SAVINGS BANK SURRENDERED TO POLICE YESTERDAY A WEEK AFTER PROSECUTORS ORDERED HIS ARREST ON CHARGES OF CORRUPTION AND ILLEGAL FINANCING OF POLITICAL PARTIES MR MAZZOTTA A FORMER CHRISTIAN DEMOCRATIC DEPUTY AND THE HEAD OF CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE OR CARIPLO TURNED HIMSELF IN AT THE ITALIANSWISS BORDER A MILAN POLICE OFFICER REPORTED THE BANKER WAS LATER TAKEN TO MILAN TO BE QUESTIONED BY JUDGES OF THE SOCALLED MANI PULITE CLEAN HANDS STAFF WHO HAVE BEEN INVESTIGATING A NATIONWIDE KICKBACK SCANDAL FOR THE PAST TWO YEARS ABOUT 3000 POLITICIANS AND BUSINESSMEN HAVE BEEN IMPLICATED IN THE SCANDAL MR MAZZOTTA AND THREE OTHER TOP CARIPLO EXECUTIVES FACED CHARGES STEMMING FROM KICKBACKS ALLEGEDLY PAID BY THE BANK ON REALESTATE INVESTMENTS OUT OF CARIPLO'S PENSION FUNDS MR MAZZOTTA WAS ON A BUSINESS TRIP ABROAD WHEN THE CARIPLO SCANDAL BROKE LAST WEEK A VICE PRESIDENT AND TWO BANK DIRECTORS WERE ARRESTED LAST MONDAY 9402080155 940208 MONDAY'S MARKETS INDUSTRIALS REBOUND RISING 3490 INVESTORS REDISCOVER ECONOMIC OPTIMISM BOND PRICES DECLINE BY STEVEN E LEVINGSTON AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE ROARED BACK FROM FRIDAY'S 96POINT PLUNGE AS INVESTORS BURIED THEIR STOCKMARKET JITTERS AND REDISCOVERED THEIR OPTIMISM ABOUT THE ECONOMY BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED 3490 POINTS TO 390632 STANDARD & POOR'S 500STOCK INDEX ROSE 195 TO 47176 AND THE NASDAQ COMPOSITE INDEX GAINED 192 TO 77920 TRADING BEGAN ON A BEARISH NOTE WITH THE INDUSTRIAL AVERAGE SINKING MORE THAN 12 POINTS SMALL STOCKS ALSO WERE PUMMELED EARLY AS THE NASDAQ COMPOSITE PLUNGED MORE THAN 10 POINTS OR 13 A CONTINUED SELLOFF IN BONDS ACCOUNTED FOR THE EARLY WEAKNESS IN STOCKS BUT AS BONDS IMPROVED LATER IN THE DAY SO DID STOCKS WITH INVESTORS FLOCKING TO ECONOMICALLY SENSITIVE SHARES ANALYSTS SAID INVESTORS FOUND THE SILVER LINING IN THE RISE IN SHORTTERM RATES THAT SPARKED FRIDAY'S SELLOFF WHILE THE SMALL JUMP IN RATES WON'T MATERIALLY HURT THE ECONOMY OR CORPORATE EARNINGS IT WILL SUBDUE INFLATION PRESSURES AND HELP TO PROLONG THE BULL MARKET SAID ABBY J COHEN MARKET STRATEGIST AT GOLDMAN SACHS WE BELIEVE THERE'S STILL A LONG WAY TO GO IN THE STOCK MARKET IN TERMS OF DURATION AND PRICE GAINS MS COHEN SAID GOLDMAN SACHS EMPHASIZED ITS CONTINUED BULLISHNESS BY BOOSTING ITS RECOMMENDED ALLOCATION TO STOCKS AFTER FRIDAY'S TUMBLE MS COHEN SAID SHE NOW ADVISES PENSION FUNDS TO INCREASE STOCK HOLDINGS TO 70 OF THEIR PORTFOLIOS FROM 65 AND REDUCE BONDMARKET EXPOSURE TO 25 FROM 30 FOR AGGRESSIVE PORTFOLIOS THE RECOMMENDED STOCK ALLOCATION ROSE TO 80 FROM 70 WITH BONDS FALLING TO 15 FROM 25 RONALD K STRIBLEY PORTFOLIO MANAGER AT GLENMEDE TRUST IN PHILADELPHIA SAID FRIDAY'S DECLINE DID NOTHING TO CHANGE HIS VIEW OF THE STOCK MARKET OR THE ECONOMY GLENMEDE TRUST WITH 85 BILLION UNDER MANAGEMENT MAINTAINS A LONGTERM INVESTMENT STRATEGY THAT ISN'T ALTERED BY TEMPORARY BLIPS IN THE MARKET HE SAID I'VE SOLD NOTHING BECAUSE OF FRIDAY AND I'VE BOUGHT NOTHING BECAUSE OF FRIDAY MR STRIBLEY SAID FOR ALL PRACTICAL PURPOSES IT WAS A NONEVENT SO FAR MUTUALFUND INVESTORS WHOSE HEAVY BUYING HAS UNDERPINNED THE BULL MARKET APPEAR TO BE SITTING TIGHT NEITHER BAILING OUT NOR BUYING HEAVILY FIDELITY INVESTMENTS THE US'S LARGEST MUTUALFUND FIRM SAID IT WAS SEEING LOWERTHANNORMAL INFLOWS OF CASH INTO STOCK FUNDS YESTERDAY AFTER A SLIGHT OUTFLOW FRIDAY OTHER MUTUALFUND COMPANIES SAID THEIR PHONE VOLUME YESTERDAY WAS NORMAL BUT THEY SAID IT'S TOO EARLY TO TELL WHETHER INVESTORS WILL TAKE A BREATHER FROM THE FRENZIED PACE OF INVESTING IN STOCK FUNDS THE BIG INFLOW OF MONEY INTO STOCK FUNDS IS THE MAIN REASON FOR REDUCED VOLATILITY IN THE DOW DURING THE PAST YEAR SAID JEFFREY SHAMES PRESIDENT OF MASSACHUSETTS FINANCIAL SERVICES A UNIT OF SUNLIFE ASSURANCE CO OF CANADA WHEN CASH IS COMING IN STOCK PRICE DECLINES TRIGGER RENEWED BUYING BY CASHRICH STOCK MUTUAL FUNDS WITH LESS CASH COMING IN THE MARKET MIGHT BE SUBJECT TO STEEPER DECLINES BEFORE FUNDS START BUYING MR SHAMES SAID BUT THE REAL PROBLEM WOULD COME IF FUND SHAREHOLDERS PULLED OUT OF STOCKS FORCING THEIR FUNDS TO DUMP SHARES TO MEET REDEMPTION REQUESTS HE SAID SOME ANALYSTS WERE CONCERNED THAT STOCK PRICES SHOWED TOO MUCH RESILIENCE BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M KIMELMAN & CO SAID THE MARKET WAS TOO HIGH PRICED BEFORE FRIDAY SHE ADDED THAT SHE WOULD PREFER TO SEE A FURTHER DROP IN PRICES OF 2 TO 3 TO TRIM OFF THE LINGERING FAT IF EVERYONE BUYS ON THE DIPS AS OFTEN HAPPENS WE AGAIN CREATE AN EXCESSIVE PERIOD IN THE MARKET THAT COULD LEAD TO A DEEPER DISAPPOINTMENT SHE SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID HE SEES DISTURBING PARALLELS BETWEEN THIS YEAR AND 1962 WHEN STOCK PRICES FELL 27 AMONG THE SIMILARITIES LOW INTEREST RATES HIGH STOCK PRICES A HEALTHY ECONOMY AND A YOUNG DEMOCRAT IN THE WHITE HOUSE WITH A BENT FOR FEDERAL INTRUSION INTO THE PRIVATE SECTOR CAN YOU HAVE A SHARP CORRECTION IN STOCK PRICES WHEN ALMOST EVERYTHING LOOKS GOOD MR JOHNSON WONDERED THE ANSWER IS YES WORLDWIDE STOCK PRICES DECLINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 081 TO 11583 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3468 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1178 ISSUES FELL AND 1044 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 639 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17590 MARKS AND 10870 YEN COMPARED WITH 17585 MARKS AND 10930 YEN FRIDAY 9402080154 940208 LEISURE & ARTS THE CLAVIER STORY OLD BODIES FOR NEW ORGANS BY JOANNE KAUFMAN TRUMBULL CONN CAN YOU TELL HOW TO GET TO CLAVIER MUSIC ASKED A VISITOR LOST IN THE MAZE OF THE TRUMBULL SHOPPING PARK TURN LEFT AT THE BANK AND FOLLOW YOUR EARS TODAY PASSERSBY ARE LISTENING TO THE SONG STYLINGS OF THE STORE'S ASSISTANT MANAGER ADRIAN MUIR WHO'S STANDING IN FRONT OF THE LOWREY GENIE ORGAN AT CLAVIER'S ENTRANCE PLAYING NOW ALLEY CAT NOW IT HAD TO BE YOU NOW MELODY OF LOVE SONGS CAREFULLY CHOSEN FOR THEIR ABILITY TO SOOTHE THE SAVAGE BREASTS AND OPEN THE WALLETS OF THE SIXTY AND SEVENTYSOMETHINGS TRAVERSING THE SOUTHWESTERN CONNECTICUT MALL ALMOST CERTAINLY AFTER THAT GUARANTEED CROWD PLEASER LARA'S THEME BETTER KNOWN AS SOMEWHERE MY LOVE MR MUIR WILL HEAR FROM A SENIOR CITIZEN OR TWO OR THREE WHAT IS MUSIC TO HIS EARS I'VE ALWAYS WANTED TO LEARN TO PLAY THE ORGAN THE WOULDBE E POWER BIGGSES HAVE COME TO THE RIGHT PLACE IN AN EFFORT TO BOOST FLAGGING ORGAN SALES CLAVIER LIKE SEVERAL OTHER MUSIC STORES AROUND THE COUNTRY HAS ESTABLISHED ONSITE ONGOING MUSIC GROUP LESSONS FOR GOLDENAGERS THE PURCHASE OF AN ORGAN GUARANTEES FREE LIFETIME CLASSES THOSE WHO AREN'T QUITE READY TO BUY AN INSTRUMENT PAY ONLY A NOMINAL FEE AROUND 150 PER CLASS CURRENTLY 2000025000 SENIORS IN MAJOR RETIREMENT STATES LIKE FLORIDA CALIFORNIA ARIZONA ALONG WITH TEXAS DELAWARE MARYLAND VIRGINIA NEW JERSEY MISSOURI AND CONNECTICUT ARE INVOLVED IN THE PROGRAM INCLUDED ARE MONTHLY NEWSLETTERS GRADUATION EXERCISES AT THE END OF EACH 10WEEK SESSION COMPLETE WITH POTLUCK DINNER AND DEPENDING ON A STUDENT'S PROGRESS A CHANCE TO PERFORM AT HOSPITALS AND RETIREMENT CENTERS WE PROMISE THEM THAT IN THE FIRST SIX WEEKS THEY'LL BE PLAYING SIX SONGS WITH BOTH HANDS SAID CLAVIER'S REGIONAL MANAGER LARRY GODWIN AMONG THOSE HALF DOZEN TUNES MARIANNE WITH A LATIN BEAT WHEN THE SAINTS GO MARCHING IN DIXIELAND STYLE AND A BIG BANDFLAVORED IN THE MOOD IN LEVEL I STUDENTS ALSO DO SOME COMPOSING AN 82YEAROLD MAN WHO A FEW WEEKS AGO DIDN'T KNOW C FROM GEE WHIZ JUST WROTE A COMPOSITION FOR ORGAN MR GODWIN NOTED THE PROGRAM IS THE BRAINCHILD OF ROBERT ZADEL FORMER HEAD OF THE SAN DIEGO MUSIC COMPANY ORGAN EXCHANGE AND FOUNDER OF LINK US INTERNATIONAL A MISSION VIEJOBASED CONSULTING FIRM FOR THE SENIOR CITIZENS' MARKET I COULD SEE THAT THE ORGAN BUSINESS WAS CHANGING AND WAS GETTING TOUGHER HE SAID I HAD NOTICED OVER THE YEARS IN THE HOME ORGAN MUSIC THAT MOST OF OUR CLIENTS HAD GRAY HAIR I WENT TO ORGAN CONCERTS AND SAW THAT THE AUDIENCE WAS 100 PERCENT GRAY HAIRS THAT BEGAN TO TRIGGER MY IMAGINATION THE SENIORS WERE ATTRACTED BY THE PRODUCT SO I STARTED SPECIALIZING IN ATTRACTING THE SENIORS MR ZADEL MAKES IT ALL SOUND AS SIMPLE AS DOREMI BUT THERE WAS PLENTY OF NEED FOR FINETUNING ALONG THE WAY WHEN YOU TEACH SENIORS YOU HAVE TO WALK A FINE LINE BETWEEN EDUCATION AND FUN HE SAID INSTEAD OF THE ORIGINAL CONCEPT OF HAVING SIX STUDENTS PER CLASS MR ZADEL AND HIS CLIENTS FOUND THAT 2530 MADE FOR A BETTER SOCIAL EXPERIENCE THEY ALSO FOUND THAT RECOGNIZING ACHIEVEMENT WAS VERY IMPORTANT THUS THE FREQUENT GRADUATION CEREMONIES AND THE STUDENT OF THE MONTH AWARD ACCORDING TO MR ZADEL THE SUCCESS OF THE PROGRAM ENCOURAGED THE ITALIAN COMPANY GENERAL MUSIC SPA TO DESIGN AN AMERICAN ORGAN SPECIALLY FOR THE SENIOR CITIZEN MARKET THE PRINTING ON THE DISPLAY PANEL STUDENTS CALL IT THE DASHBOARD JUST AS THEY CALL THE VOLUME CONTROL THE GAS PEDAL IS LARGER THAN ON CONVENTIONAL ORGANS THE BUTTONS THAT CONTROL VARIOUS FEATURES ARE ALSO BIGGER TO HELP ACCOMMODATE ARTHRITIC HANDS THE SOUND IS BIG BROAD BEAUTIFUL TONES RATHER THAN STRIDENT HEAVY METAL SOUND SAID MR ZADEL AND THE RHYTHM PATTERNS ARE REMINISCENT OF THE 30' 40' AND 50'S MUSIC RATHER THAN TODAY'S SOUND PRIOR TO THIS PROGRAM THE ORGAN BUSINESS WAS READY TO HIT THE BRICKS BECAUSE WE WERE DESIGNING ORGANS FOR TECHHEADS THEY WERE BECOMING MORE LIKE COMPUTERS THAN GOOD OLDFASHIONED INSTRUMENTS ADDED MR ZADEL WHO ESTIMATES THE ORGAN BUSINESS HAS ANNUAL SALES OF 100 MILLION WITH SENIORS ACCOUNTING FOR 70 OF THE MARKET THE SENIOR MARKET IS OF SIGNIFICANT VALUE TO US SAID FRANK WEST NATIONAL ADVERTISING MANAGER FOR THE CHICAGOBASED LOWREY ORGAN COMPANY WHOSE 2995 GENIE IS THE MODEL OF CHOICE FOR SENIORS STARTING OUT IN THE PROGRAM BUT HE ADDS IF THEY DON'T LEARN HOW TO PLAY IT'S OF NO USE SO THE EDUCATIONAL PROGRAM HAS BEEN VERY HELPFUL TO US CLEARLY THE PROGRAM HAS BEEN OF EQUAL BENEFIT TO THE STORES ONE BRANCH OF THE KANSAS CITY MOBASED JENKINS MUSIC COMPANY CHAIN HAD BEEN SLATED TO CLOSE BUT THE SUCCESS OF THE PROGRAM HAS BEEN SO STAGGERING THAT THE STORE IS THRIVING SAID JENKINS'S PRESIDENT HAL COWAN NOW WE'RE THINKING OF OPENING MORE STORES TO EXPAND THE PROGRAM IT'S A WINWIN SITUATION SAID JIM SOWELL SALES MANAGER AT HOLCOMBE MUSIC IN HOUSTON WE FIND IF WE TRULY SERVICE THESE PEOPLE TEACH THEM HOW TO USE THE INSTRUMENT THEN EITHER ON A DIRECT OR RESIDUAL BASIS THAT'S WHERE OUR SALES WILL COME FROM AND OUR CUSTOMERS GET SOMETHING OUT OF IT THEY GET A HOBBY IT'S LIFE ENHANCING FOR A PRICE WHILE THE ENTRY COST CAN BE AS LOW AS 299 FOR A USED ORGAN THE AVERAGE STICKER PRICE FOR A FIRST TIME BUYER ACCORDING TO MR ZADEL IS 1600 A STUDENT AT CLAVIER MUSIC WHO STARTED WITH AN 800 USED ORGAN RECENTLY TRADED UP TO A 20000 MODEL AN EXPENSE HE JUSTIFIED BECAUSE OF HIS EIGHTHOURADAY PRACTICE HABIT HIS CLASSMATES ARE EQUALLY ENTHUSIASTIC BUT WE DON'T USE THE WORD PRACTICE' WE USE THE WORD PLAY' SAID 69YEAROLD EV HERBERT A RETIRED MACHINE DESIGNER WHO PLAYS MANY HOURS A DAY I PUT ON THE BIG BAND SOUND AND GROOVE ONE WOMAN WHO NEEDED GALL BLADDER SURGERY SCHEDULED HER OPERATION SO AS NOT TO CONFLICT WITH GRADUATION FROM LEVEL III OTHERS HAVE INSISTED THAT PLAYING THE ORGAN HAS HELPED THEIR INSOMNIA AND ARTHRITIS THE ONE THING ALL THIS PRACTICING HASN'T DONE IS CATAPULT ANY OF THESE LATEONSET ORGANISTS ONTO THE STAGE OF CARNEGIE HALL OR ANY OTHER PROFESSIONAL VENUE I DON'T THINK ANYBODY IN THE PROGRAM EXPECTS TO GO OUT ON THE ROAD AND PERFORM SAID HOLCOMBE MUSIC'S MR SOWELL BUT HE POINTS OUT SENIORS AREN'T BEING PATRONIZED WITH WATEREDDOWN INSTRUCTION WHILE THE SONGS ARE PRINTED ON EXTRALARGE SHEET MUSIC A NOD TO FAILING EYESIGHT AND WHILE THE STUDENTS BEGIN THE PROGRAM USING EASYPLAY NOTATION THE LETTER C FOR EXAMPLE IS PRINTED UNDER A C NOTE THEY PROGRESS QUICKLY TO STANDARD NOTATION AND ARE TAUGHT CORRECT FINGERING TIMING AND HARMONY IT'S A REAL MUSICAL EDUCATION INSISTED HAL COWAN IT'S NOT SOME HOKEYPOKEY THING YOU COULD SEE WHAT HE MEANT IN THE GLASS FRONTED CLASSROOM JUST OFF CLAVIER'S SALES FLOOR WHERE LEVEL IV STUDENTS WERE DISCUSSING THEIR PROGRESS ON AFTER YOU'VE GONE HOW DID YOU ALL DO WITH YOUR PRACTICING ASKED INSTRUCTOR LINDA HASTINGS THERE WERE A LOT OF NEW CHORDS NOW WHO WANTS TO PLAY IT WE'LL TAKE IT REAL SLOW I CAN'T DO IT SLOW MOURNS ONE SEPTAGENARIAN USING AN OVERHEAD PROJECTOR MS HASTINGS DISPLAYED A SCALE AND INVITED HER CHARGES TO COME UP WITH SOME CHORD PROGRESSIONS C MINOR SHE ENCOURAGED ANY GUESS ON HOW WE WOULD PLAY THAT SOFTLY CAME A VOICE FROM THE BACK OF THE ROOM THE STUDENTS WHO ARE CONSTANTLY AND PROUDLY REMINDING MR HASTINGS JUST HOW OLD THEY ARE FALL INTO TWO CATEGORIES EITHER THEY HAD MUSIC LESSONS FORCED ON THEM AS CHILDREN AND NEVER HAD THE FREEDOM TO PLAY FOR PLEASURE OR THEY GREW UP IN FAMILIES WHERE MUSIC STUDY JUST WASN'T IN THE BUDGET SUCH WAS THE CASE WITH KAY TELESHA 67 WHO'S BOUGHT TWO ORGANS SINCE ENROLLING IN THE CLAVIER PROGRAM I'VE ALWAYS WANTED TO PLAY THE STAR SPANGLED BANNER' AT YANKEE STADIUM SHE SAID IF ROSEANNE CAN SING IT I CAN PLAY IT MS KAUFMAN IS A FREELANCE WRITER IN NEW YORK 9402080153 940208 RAWSTEEL PRODUCTION ROSE 33 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 33 LAST WEEK TO 1859000 TONS FROM 1800000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 4 FROM THE 1787000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 903 OF ITS CAPABILITY LAST WEEK COMPARED WITH 874 THE PREVIOUS WEEK AND 845 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9402080152 940208 MARKETING & MEDIA MACY IS EXPECTED TO SEEK EXTENSION OF EXCLUSIVE RIGHT BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO IS EXPECTED THIS WEEK TO ASK A FEDERAL BANKRUPTCY COURT FOR A SIXMONTH EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A CHAPTER 11 REORGANIZATION PLAN THE DEPARTMENTSTORE RETAILER OPERATING UNDER BANKRUPTCYCOURT PROCEEDINGS SINCE JANUARY 1992 IS ATTEMPTING TO FEND OFF UNWANTED SUITOR FEDERATED DEPARTMENT STORES INC WHICH LAST MONTH ACQUIRED A CHUNK OF MACY SECURED DEBT AND SAID IT WANTS TO MERGE WITH MACY FEDERATED HAS INDICATED IT LIKELY WILL WAIT FOR MACY TO FILE ITS OWN REORGANIZATION PLAN BEFORE SUGGESTING AN ALTERNATIVE BUT ANALYSTS SAY FEDERATED AND OTHER SECURED CREDITORS SUCH AS FIDELITY INVESTMENTS COULD PROTEST THE SIXMONTH EXTENSION REQUEST AT A SEPARATE COURT HEARING IN NEW YORK LATER THIS MONTH FEDERATED COULD COME IN AND SAY THEY HAVE A REORGANIZATION PLAN TO BE CONSIDERED RIGHT NOW AND THAT WHILE SOME EXTENSION IS REASONABLE SIX MONTHS IS TOO LONG SAYS JACK HERSCH DIRECTOR OF RESEARCH AT MJ WHITMAN LP A DEALER SPECIALIZING IN DISTRESSED SECURITIES MACY FEDERATED AND FIDELITY DECLINED TO COMMENT MACY WHICH IS ATTEMPTING TO IMPROVE ITS PERFORMANCE HAD BEEN EXPECTED TO SEEK THE EXTENSION MACY'S CASHFLOW PERFORMANCE IS ON AN UPWARD TREND SAID MJ WHITMAN'S MR HERSCH IF THAT CONTINUES THEY CAN CREATE MORE VALUE FOR TRADE CREDITORS AND THAT POTENTIALLY GIVES MANAGEMENT AN ARGUMENT TO ASK FOR EQUITY IN THE COMPANY THAT EMERGES FROM BANKRUPTCY SO TIME IS IMPORTANT HERE ADDED MEREDITH ADLER A HIGHYIELD BOND ANALYST FOR CHEMICAL SECURITIES INC MACY'S GETS A CHANCE TO DO MORE TO FIX ITS BUSINESS ANALYSTS AGREED YESTERDAY THAT MACY WHICH OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES IS LIKELY TO WIN THE EXTENSION FROM JUDGE BURTON LIFLAND OF FEDERAL BANKRUPTCY COURT IN NEW YORK THE EXTENSION COULD THUS BE GRANTED ON FEB 22 WHEN MACY HAS A HEARING SCHEDULED WITH JUDGE LIFLAND A PLAN OF REORGANIZATION INVOLVES A DETAILED PAYOUT FOR EACH CREDITOR GROUP AND A TARGET DATE TO EMERGE FROM BANKRUPTCYCOURT PROTECTION MACY CURRENTLY OWES ITS CREDITORS ABOUT 6 BILLION MACY AT SOME POINT COULD FACE A COMPETING REORGANIZATION PLAN FROM FEDERATED BUT UNDER BANKRUPTCY LAW FEDERATED CANNOT FILE A PLAN OF REORGANIZATION UNTIL MACY'S EXCLUSIVE RIGHT TO PROPOSE ITS OWN PLAN HAS EXPIRED CURRENTLY THAT EXCLUSIVITY PERIOD TERMINATES MARCH 15 BUT CAN BE EXTENDED BY JUDGE LIFLAND 9402080151 940208 WHO'S NEWS TISHMAN REALTY & CONSTRUCTION CO TISHMAN REALTY & CONSTRUCTION CO NEW YORK JOHN T LIVINGSTON 40 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF TISHMAN URBAN DEVELOPMENT CORP A NEW UNIT OF THIS DEVELOPER OWNER AND CONSTRUCTION COMPANY THE UNIT WAS FORMED TO DEVELOP JOINT PUBLIC AND PRIVATE PROJECTS MR LIVINGSTON FORMERLY A PARTNER AT LINPRO CO ALSO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT 9402080150 940208 DECADE OF DOWNSIZING EASES STIGMA OF LAYOFFS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL GOOD NEWS FOR LAIDOFF UNEMPLOYED EXECUTIVES THE STIGMA IS FADING ASK SCOTT NORTHCUTT WHO MAY HIRE AS MANY AS 110 EXECUTIVES THIS YEAR FOR MIDDLEMANAGEMENT POSITIONS AT DOLLAR GENERAL CORP A DISCOUNT RETAILER TO HIM THE UNEMPLOYED ARE OPPORTUNITIES FROM HIS OFFICE IN NASHVILLE TENN MR NORTHCUTT SCOURS THE RETAILING MARKETPLACE FOR COMPANIES OR STORES THAT ARE ABOUT TO CLOSE THEN LOOKS TO SEE WHO'S AVAILABLE I'M IN THE RECRUITER'S CATBIRD SEAT RIGHT NOW HE EXULTS TIMES CERTAINLY HAVE CHANGED NOT LONG AGO AN UNEMPLOYED EXECUTIVE WAS SEEN AS DAMAGED GOODS RESUMES WERE ARTFULLY WRITTEN TO OBSCURE WHEN A PERSON STOPPED WORKING AN INTERVIEWER'S QUESTION ON CURRENT JOB SITUATION WAS MET WITH HEMMING AND HAWING WORSE IN MANY CASES THE INTERVIEW JUST DIDN'T HAPPEN IF I GO BACK 10 OR 15 YEARS IT USED TO BE THAT SOMEONE GOT LAID OFF BECAUSE OF THEIR OWN PERFORMANCE SAYS BILL MALTARICH VICE PRESIDENT OF HUMAN RESOURCE MANAGEMENT AT TRW INC IN CLEVELAND WE'D BE SKEPTICAL OF THAT PERSON AND YOU KNOW WHAT WE WERE USUALLY RIGHT BUT THE LAST DECADE CHANGED THE MINDSET OF WHITECOLLAR AMERICA THE MERGERMANIC 1980S FORCED OUT THOUSANDS OF EXECUTIVES MANAGERS AND PROFESSIONALS THEN THE MERGER ERA GAVE WAY TO THE STREAMLINING RESTRUCTURING AND DOWNSIZING OF THE 1990S TURNING OUT WAVES OF COMPETENT EXECUTIVES WALK DOWN MAIN STREET IN VIRTUALLY ANY TOWN AND STOP 100 PEOPLE I'LL BET YOU THAT 70 OF THEM EITHER KNOW SOMEONE WHO'S BEEN LAID OFF HAVE A RELATIVE WHO'S BEEN LAID OFF OR HAVE BEEN LAID OFF THEMSELVES SAYS RICHARD PINOLA PRESIDENT OF RECRUITER RIGHT ASSOCIATES INDEED THE BUREAU OF LABOR STATISTICS SAYS THERE ARE NEARLY ONE MILLION UNEMPLOYED MANAGERS AND PROFESSIONALS AS A RESULT MANY INTERVIEWERS HAVE A NEW VIEW OF OUTOFWORK MANAGERS GIVEN THE ECONOMY AND REORGANIZATIONS AND SUCH IT'S MUCH MORE UNDERSTANDABLE THAT SOMEONE GOT HIT IN THE NECK WITH A PIECE OF SHRAPNEL SAYS MONTE BRADSHAW A VICE PRESIDENT AT CLEVELANDBASED RECRUITER CHRISTIAN & TIMBERS ABOUT 18 MONTHS AGO TOM STOUDT FOUND HIMSELF OUT OF WORK HIS EMPLOYER A PHILADELPHIA LIFE INSURER WAS ON ITS THIRD MAJOR ROUND OF JOB CUTS LOOKING TO LAY OFF 100 PEOPLE WITH LITTLE DIRECT MANAGEMENT RESPONSIBILITY MR STOUDT'S POSITION AS VICE PRESIDENT WAS VULNERABLE OFFERED A LOWERLEVEL POST MR STOUDT NOW 55 YEARS OLD CHOSE TO TAKE A SEVERANCE PACKAGE AND USE HIS 10 GOOD YEARS OF WORK LIFE DOING SOMETHING NEW HE STARTED HIS JOB SEARCH IN JANUARY 1993 I WAS ALWAYS UP FRONT WITH THE FACT THAT I WAS DOWNSIZED OUT OF A JOB MR STOUDT SAYS I CAN'T SAY THE LAYOFF EVER HURT MY CHANCES IN OCTOBER HE SIGNED ON AS A VICE PRESIDENT AT RESPONSE ANALYSIS CORP A PRINCETON NJ RESEARCH FIRM THAT ONCE WAS A CLIENT OF HIS MANY CORPORATE INTERVIEWERS ARE LIKELY TO HAVE LOST JOBS THEMSELVES DENNIS LUNDER EXECUTIVE DIRECTOR OF MARKETING COMMUNICATIONS AT THE CARD COMPANY AMERICAN GREETINGS CORP HAS HAD TO LOOK FOR WORK SIX TIMES IN HIS NEARLY 30YEAR CAREER RECRUITED FROM CALIFORNIA BY BOWMAN DISTRIBUTION IN CLEVELAND HE RECALLS THAT HE CUT THEIR 70 TURNOVER RATE AMONG DISTRICT MANAGERS HE DID SO WELL HE SAYS HE FORCED HIMSELF OUT OF A POSITION AT AMERICAN GREETINGS HE SAYS WE LOOK AT WHY PEOPLE MAY HAVE BEEN IN A STRING OF POSITIONS RATHER THAN JUST TOSSING A PROSPECT ASIDE DOLLAR GENERAL'S MR NORTHCUTT IS ONE OF THE NEWLY SENSITIVE BREED OF MANAGER IN THE MID1980S AS AN EXECUTIVE AT BEGLEY CO A DRUG CHAIN IN RICHMOND KY THAT WAS FACING A TAKEOVER HE JOINED DOLLAR GENERAL RATHER THAN HAVE AN UNCERTAIN FUTURE BUT HE STAYED AN EXTRA WEEK AT BEGLEY HE SAYS TO LAY OFF 100 PEOPLE I DIDN'T WANT A STRANGER TO DO IT HE RECALLS HE THINKS OF THOSE DAYS NOW WHEN HE HIRES THERE WERE A LOT OF GOOD PEOPLE AMONG THE 100 HE CUT MR NORTHCUTT SAYS IT'S NOT A PERFORMANCE ISSUE FOR MANY OF THESE PEOPLE WHILE THE STIGMA IS FADING THE PACE OF CHANGE VARIES IN FASTGROWING INDUSTRIES WITH FEW LAYOFFS UNEMPLOYED EXECUTIVES ARE VIEWED WITH SUSPICION WHY LOSE A JOB WHEN COMPANIES ARE GROWING THERE ARE REGIONAL DIFFERENCES AS WELL COMPANIES IN THE MORE CONSERVATIVE MIDWEST WITH THEIR MULTITIERED CORPORATE STRUCTURES DON'T LOOK TO THE UNEMPLOYED AS OFTEN AS THOSE IN TRANSIENT CALIFORNIA WHERE JOBSWITCHING IS A FACT OF LIFE BUT THE LONGER ON THE UNEMPLOYMENT LINE THE WORSE A CANDIDATE STARTS TO LOOK THE INTERVIEWERHIRER'S AGE ALSO MATTERS OLDER GENERATIONS WERE BUILT ON THE IDEA THAT IF YOU WERE COMPETENT AND CAPABLE YOU DIDN'T GET FIRED SAYS MORTIMER FEINBERG WHOSE NEW YORK FIRM BFS PSYCHOLOGICAL ASSOCIATES INC SCREENS EXECUTIVES AND RECRUITERS OFTEN ARE RELUCTANT TO GIVE CORPORATE CLIENTS NAMES OF UNEMPLOYED EXECUTIVES LEST IT APPEAR THEY AREN'T SEARCHING HARD ENOUGH INDEED FIRINGS OR LAYOFFS OFTEN ARE USED AS A TOOL BY INTERVIEWERS DR FEINBERG ASKS EXECUTIVES WHEN THEY FIRST SAW SIGNS THAT THE AX WAS COMING IF IT CAME AS A REAL SHOCK I BEGIN TO WONDER WHY DIDN'T YOU SEE THE SIGNALS' HE SAYS IT'S A PSYCHOLOGICAL COMPETENCE GAUGE MOREOVER SELFIMPOSED STIGMA CAN FOIL JOB OPPORTUNITIES ONE OF THE BIGGEST SERVICES WE PROVIDE IS REMINDING PEOPLE HOW THEY GOT TO THE JOB THEY WERE IN CHIEF FINANCIAL OFFICER VICE PRESIDENT PRODUCT MANAGER SAYS RIGHT ASSOCIATES' MR PINOLA GROWING SMALLER COMPANIES WHERE MUCH OF THE JOB GROWTH IS AND THOSE IN SMALLER CITIES ARE BEGINNING TO JUMP AT UNEMPLOYED EXECUTIVES WHEN ROBERT MEULEMAN CHIEF OPERATING OFFICER AT AMCORE FINANCIAL INC IN ROCKFORD ILL WAS HUNTING FOR SOMEONE TO RUN HIS BANKING COMPANY'S ADMINISTRATIVE AND DATA PROCESSING OPERATIONS HE HAD THE CHOICE BETWEEN AN EXECUTIVE AND THE EXECUTIVE'S BOSS WHO WERE LOSING THEIR JOBS AT A MAJOR BANK HE TOOK THE SUBORDINATE IN ANOTHER CASE HE HIRED THE FORMER PRESIDENT OF A SMALL BANK TO RUN ONE OF HIS GROUPS AT AMCORE IN OUTOFTHEWAY ROCKFORD BIGCOMPANY LAYOFFS MAKE FOR GOOD PICKINGS MAYBE COMPANIES DO AND MAYBE COMPANIES DON'T KEEP THE BEST OF WHAT THEY HAVE MR MEULEMAN SAYS WE'RE FINDING PEOPLE 9402080149 940208 ALCOA PLANS TO SLASH 8 OF US CAPACITY SUGGESTING GLOBAL ACCORD MAY SUCCEED BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ALUMINUM CO OF AMERICA SAID IT IS SLASHING 100000 METRIC TONS OF ANNUAL PRODUCTION OR ABOUT 8 OF DOMESTIC CAPACITY SUGGESTING THAT AN ACCORD TO CUT GLOBAL OVERSUPPLY MAY SUCCEED ALCOA THE WORLD'S BIGGEST ALUMINUM PRODUCER SAID THE REDUCTIONS WILL BEGIN IMMEDIATELY AT ITS OPERATIONS IN ROCKDALE TEXAS AND WENATCHEE WASHINGTON THE MOVE WILL CAUSE AN UNDETERMINED NUMBER OF WORK FORCE REDUCTIONS AT THE TWO PLANTS WHICH EMPLOY 2200 IN BRUSSELS LATE LAST MONTH MAJOR ALUMINUMPRODUCING NATIONS REACHED AN ACCORD TO CUT GLOBAL PRODUCTION BY UP TO TWO MILLION METRIC TONS A YEAR OR ROUGHLY 10 OF THE WORLD'S CAPACITY THE ACCORD WAS SPURRED BY SOARING STOCKPILES LARGELY A RESULT OF RUSSIAN ALUMINUM'S FLOODING THE MARKET AFTER THE DOWNFALL OF THE SOVIET UNION WHOSE MILITARY WAS A BIG CONSUMER OF ALUMINUM THE SUPPLY SPIKE SENT PRICES PLUNGING TO HISTORIC LOWS ON AN INFLATIONADJUSTED BASIS IN THE FALL THOUGH PRICES HAVE RECOVERED SOMEWHAT SINCE THEN THE ACCORD CALLS FOR RUSSIAN SMELTERS TO CUT A TOTAL OF 500000 TONS OF ANNUAL PRODUCTION WITH WESTERN PRODUCERS SLASHING ANOTHER ONE MILLION TO 15 MILLION TONS SOME OBSERVERS HAVE EXPRESSED SKEPTICISM OVER THE ACCORD SINCE PRODUCERS MUST MAKE THE CUTS VOLUNTARILY ANALYSTS SAID ALCOA'S ANNOUNCEMENT WHICH CAME AFTER THE STOCK MARKET'S CLOSE SHOWED THAT THE PACT IS WORKING IT'S CLEAR THAT PRODUCERS ARE ACTING IN THE SPIRIT OF THE BRUSSELS AGREEMENT SAID THOMAS M VAN LEEUWEN AN ANALYST WITH CS FIRST BOSTON I WOULD HOPE THAT WE WOULD SEE OTHER PRODUCERS FOLLOW THROUGH ESPECIALLY IN EUROPE THE SOONER PRODUCERS RECOGNIZE WHAT THE PROBLEM IS THE SOONER THEY'LL STOP FEELING THE PAIN ADDED STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT SO FAR WORLD PRODUCERS HAVE ANNOUNCED PRODUCTION CUTS OF ABOUT ONE MILLION TONS ANALYSTS SAID COMBINED WITH DOMESTIC CUTS MADE LAST YEAR ALCOA HAS IDLED 410000 METRIC TONS OF ANNUAL CAPACITY OR 32 BUT UNDER THE ACCORD THE COMPANY RECEIVES CREDIT FOR ONLY THE MOST RECENT REDUCTION 9402080148 940208 WHO'S NEWS TEXAS STAR RESOURCES CORP TEXAS STAR RESOURCES CORP HOUSTON J DAVID EDWARDS 47 YEARS OLD WAS NAMED PRESIDENT OF THIS DIAMONDEXPLORATION COMPANY MR EDWARDS SUCCEEDS WILLIAM M TONKING 64 WHO WILL RETAIN HIS OTHER POST AS CHIEF EXECUTIVE OFFICER MR EDWARDS SAID MR TONKING DECIDED TO SLOW DOWN AS HE APPROACHED RETIREMENT MR EDWARDS PREVIOUSLY WAS AN EXECUTIVE VICE PRESIDENT FOR UNITED SERVICES ADVISORS INC SAN ANTONIO WHERE HE SUPERVISED SEVERAL LARGE GOLD AND NATURALRESOURCES MUTUAL FUNDS 9402080147 940208 WHO'S NEWS BNL HEAD STEPS ASIDE AMID UNRELATED PROBE OF TOWN'S CORRUPTION ROME THE CHAIRMAN OF ITALY'S BANCA NAZIONALE DEL LAVORO SAID HE WAS TEMPORARILY STEPPING ASIDE AFTER GIVING A STATEMENT TO PROSECUTORS INVESTIGATING CORRUPTION IN HIS HOMETOWN GIAMPIERO CANTONI IN A STATEMENT ISSUED BY BNL SAID THE MATTER HAD NOTHING TO DO WITH THE BANK ONE OF ITALY'S LARGEST HIS DEPUTY RODOLFO RINALDI WILL TAKE CHARGE IN HIS ABSENCE MR CANTONI SAID HE HAD VOLUNTEERED INFORMATION TO MILAN PROSECUTORS ABOUT URBAN AFFAIRS THAT INVOLVED ADMINISTRATORS AND BUSINESSMAN IN SEGRATE A SMALL COMMUNITY NEAR THE CITY PROSECUTORS FOR THE PAST YEAR HAVE BEEN PROBING KICKBACKS BY BUILDERS TO LOCAL OFFICIALS IN EXCHANGE FOR ZONING VARIANCES MR CANTONI HAD BEEN BROUGHT IN BY THE TREASURY MINISTRY IN 1989 TO RUN THE BANK AFTER THE SCANDAL BROKE ABOUT IMPROPER LOANS TO IRAQ BY A BNL BRANCH IN ATLANTA 9402080146 940208 WHO'S NEWS TEXTRON'S RANDALL UNIT GETS JANE L WARNER AS ITS NEW PRESIDENT PROVIDENCE RI JANE L WARNER 47 YEARS OLD WAS NAMED PRESIDENT OF TEXTRON INC'S RANDALL TEXTRON DIVISION EFFECTIVE IMMEDIATELY TEXTRON IS AN AEROSPACE MANUFACTURING AND FINANCIALSERVICES CONCERN RANDALL IN CINCINNATI MAKES AUTOMOTIVE PARTS MS WARNER THE FIRST WOMAN PRESIDENT OF A TEXTRON DIVISION WAS ASSISTANT CHIEF ENGINEER AND PRODUCT MANAGER OF GENERAL MOTORS CORP'S MIDSIZE CAR DIVISION CAMARO AND FIREBIRD PLATFORM SHE SUCCEEDS RUSSELL G DOWNING WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS THE COMPANY SAID MR DOWNING'S DEPARTURE FOLLOWS A RECENT RECALL BY GM OF 53000 NEW S10 PICKUP TRUCKS THAT CONTAINED FAULTY FUEL PIPES THAT PEOPLE FAMILIAR WITH THE RECALL SAID WERE SUPPLIED BY RANDALL TEXTRON GM SAID THE FAULTY PARTS DIDN'T MEET FEDERAL STANDARDS FOR FUEL LEAKAGE IN A COLLISION MR DOWNING COULDN'T BE REACHED FOR COMMENT TEXTRON DIDN'T RETURN PHONE CALLS 9402080145 940208 INSURED QUAKE DAMAGE ESTIMATED AT 25 BILLION RAHWAY NJ THE INSURED PROPERTY DAMAGE CAUSED BY THE JAN 17 EARTHQUAKE WILL AMOUNT TO 25 BILLION ACCORDING TO THE INSURANCE INDUSTRY'S OFFICIAL SCOREKEEPER THE PROPERTY CLAIMS SERVICE DIVISION OF THE AMERICAN INSURANCE GROUP WHICH TRACKS INSURANCE LOSSES ON BEHALF OF THE INDUSTRY EXPECTS 230000 CLAIMS EVENTUALLY WILL RESULT FROM THE CALIFORNIA DISASTER MOST OF THE DAMAGE WAS IN THE SAN FERNANDO VALLEY THE ESTIMATE DOESN'T INCLUDE LOSSES FOR UNINSURED PROPERTY APPROXIMATELY 33 OF HOMEOWNERS IN THE AFFECTED AREA HAVE EARTHQUAKE COVERAGE SAID GARY KERNEY AN AIG EXECUTIVE WHO HELPED ASSEMBLE THE DATA COMMERCIAL PROPERTY HAS A SLIGHTLY HIGHER RATE OF COVERAGE AT 25 BILLION THE EARTHQUAKE WOULD RANK AS THE THIRD WORST NATURAL DISASTER IN THE PAST SEVERAL YEARS COMING AFTER HURRICANES ANDREW AND HUGO 9402080144 940208 FINANCING BUSINESS BDM INTERNATIONAL INC BDM INTERNATIONAL INC MCCLEAN VA SAID IT INTENDS TO MAKE AN INITIAL PUBLIC OFFERING OF CLASS A COMMON SHARES IN THE FIRST HALF OF THE YEAR THE TECHNOLOGICALSERVICES COMPANY REPORTED SALES OF 424 MILLION IN 1992 IT HAS ABOUT 6000 EMPLOYEES AND OPERATES IN MORE THAN 60 LOCATIONS WORLDWIDE EARLIER THIS YEAR BDM SAID IT WOULD BUY A MAJORITY STAKE IN A GERMAN DEFENSE FIRM AND IT HAD FORMED A JOINT VENTURE WITH ELECTROSOURCE INC TO PRODUCE HIGHPERFORMANCE LEADACID BATTERIES TO POWER ELECTRIC VEHICLES 9402080143 940208 DIVIDEND NEWS GM RAISES DIVIDENDS ON CLASS E CLASS H COMMONSTOCK ISSUES DETROIT GENERAL MOTORS CORP SAID IT RAISED THE DIVIDENDS ON ITS CLASS E AND CLASS H COMMON STOCK REFLECTING IMPROVED FINANCIAL RESULTS AT GM'S ELECTRONIC DATA SYSTEMS CORP AND HUGHES ELECTRONICS CORP SUBSIDIARIES GM'S SUBSIDIARIES ARE EXPECTED TO REPORT 1993 FINANCIAL RESULTS TOMORROW BUT THE DIVIDEND HIKES INDICATE THAT EDS AND HUGHES WILL POST EARNINGS BETTER THAN THE 1992 RESULTS FOR ALL OF 1992 EDS EARNED 6355 MILLION OR 133 A SHARE AND HUGHES EARNED 9216 MILLION OR 11 CENTS A SHARE THE CLASS E AND CLASS H SHARES REPRESENT DIVIDEND INTEREST IN EDS AND HUGHES RESPECTIVELY GM RAISED ITS REGULAR QUARTERLY CLASS E DIVIDEND TO 12 CENTS A COMMON SHARE UP 20 FROM THE PREVIOUS DIVIDEND OF 10 CENTS A SHARE THE REGULAR QUARTERLY DIVIDEND ON GM CLASS H SHARES ROSE 11 TO 20 CENTS A SHARE UP FROM 18 CENTS A SHARE GM LAST RAISED THE DIVIDEND ON THE CLASS E COMMON IN THE 1993 FIRST QUARTER THE CLASS H COMMON HADN'T BEEN RAISED SINCE 1989 THE NEXT DIVIDENDS FOR BOTH THE CLASSES ARE PAYABLE MARCH 10 TO HOLDERS OF RECORD AS OF FEB 17 9402080142 940208 WHO'S NEWS GRUPO INDUSTRIAL BIMBO SA GRUPO INDUSTRIAL BIMBO SA MEXICO CITY LORENZO SERVITJE SENDRA CHAIRMAN OF THIS MEXICAN BREAD GIANT SAID HE PLANS TO RETIRE SPEAKING IN AN INTERVIEW WITH EL FINANCIERO MR SERVITJE 75 YEARS OLD DIDN'T SAY WHEN HE WOULD STEP DOWN BUT SAID HIS BROTHER ROBERTO WOULD CONTINUE AS PRESIDENT BIMBO DIDN'T RETURN CALLS SEEKING CONFIRMATION OF THE FINANCIERO REPORT 9402080141 940208 TECHNOLOGY IBM UNIT TO CUT PRICES UP TO 19 ON PC MODELS NEW YORK INTERNATIONAL BUSINESS MACHINES CORP'S IBM PC CO UNIT CUT PRICES AS MUCH AS 19 ON THE MOST RECENT MODELS OF ITS INCREASINGLY POPULAR VALUEPOINT DESKTOPS FOR COMMERCIAL CUSTOMERS IN RESPONSE TO COMPETITORS AND INTEL CORP'S RECENT REDUCTIONS ON THE PENTIUM CHIP VALUEPOINT'S TWO PENTIUM MODELS ARE STILL ONLY A FRACTION OF TOTAL SHIPMENTS OF IBM PCS BUT INTEL HAS CUT PRICES 14 ON THE PENTIUM CHIP IN ORDER TO INCREASE DEMAND AND MAKE ITS HIGHPERFORMANCE CHIP MORE PRICE COMPETITIVE THE IBM PENTIUM DESKTOPS WILL SELL NOW FOR 4149 COMPARED WITH 4700 AND 4199 DOWN FROM 5180 IN RESPONSE TO COMPAQ COMPUTER CORP CUTS ON SIMILAR MODELS IBM PC ALSO LOWERED PRICES ON ALL ENTRYLEVEL VALUEPOINTS BY 13 STARTING AT 749 IT ALSO REDUCED BY 10 PRICES FOR THE MULTIMEDIA SERIES WHICH WILL NOW START AT 1422 STUART COHEN DIRECTOR OF COMMERCIAL DESKTOPS SAID SOME OF THE VALUEPOINT MODELS WILL BE REFRESHED THIS SPRING BUT IBM HASN'T YET DECIDED WHICH ONES 9402080140 940208 INTERNATIONAL A PROREFORM ECONOMIST QUITS KEY PANEL IN RUSSIA SPECIAL TO THE WALL STREET JOURNAL MOSCOW ANDREI ILLARIONOV THE PROREFORM ECONOMIST WHO HEADED THE RUSSIAN PRIME MINISTER'S ANALYSIS AND PLANNING GROUP RESIGNED WARNING THAT THE GOVERNMENT'S PLANS WILL LEAD THE COUNTRY TO HYPERINFLATION INDEED ANNOUNCEMENT OF HIS DEPARTURE COINCIDED WITH THE RELEASE OF DATA FROM THE GOVERNMENT'S CENTER FOR ECONOMIC ANALYSIS THAT SAID INFLATION IN RUSSIA JUMPED TO 22 A MONTH IN JANUARY FROM 13 A MONTH IN DECEMBER IN HIS ANNOUNCEMENT TO PRIME MINISTER VIKTOR CHERNOMYRDIN MR ILLARIONOV SAID THE DECISIONS NOW UNDER PREPARATION BY YOUR GOVERNMENT WILL INEVITABLY DOOM RUSSIA TO HYPERINFLATION MR ILLARIONOV JOINS THE GROWING RANKS OF ECONOMISTS AND REFORMERS WHO HAVE LEFT THE GOVERNMENT SINCE IT WAS REORGANIZED LAST MONTH BRINGING IN ADVOCATES FOR INDUSTRY AND AGRICULTURE WHO CALLED FOR MODERATION OF THE REFORM PROGRAM IN HIS EIGHT MONTHS AS MR CHERNOMYRDIN'S ECONOMIC ADVISER MR ILLARIONOV OFTEN CRITICZED THE GOVERNMENT'S PROGRAMS LAST WEEK HE ATTACKED A PLAN TO SUPPORT THE FARM SECTOR WITH SUBSIDIES AND PRIVILEGES AS A SPARKLING TEXT ON LOBBYING THAT WOULD PUSH UP INFLATION JANUARY'S INFLATION RATE WAS THE HIGHEST SINCE OCTOBER WHEN PRICES JUMPED AT A 25 MONTHLY RATE CONSUMERSERVICE PRICES JUMPED SHARPLY LAST MONTH RISING 70 MAINLY BECAUSE OF HIGHER TRAIN FARES AND TELEPHONE RATES 9402080138 940208 DR HORTON NET SALES CONTRACTS ARLINGTON TEXAS DR HORTON INC SAID NET SALES CONTRACTS SIGNED IN JANUARY ROSE 72 FROM A YEAR EARLIER TO 325 MILLION OR 212 HOMES THE HIGHEST MONTHLY SALES IN THE COMPANY'S HISTORY FROM 189 MILLION OR 122 HOMES DONALD R HORTON CHAIRMAN AND PRESIDENT OF THE HOMEBUILDING CONCERN SAID THE COMPANY'S STRATEGY OF DIVERSIFYING GEOGRAPHICALLY HELPED NEWHOME SALES RISE DESPITE SEVERE WINTER WEATHER THE COMPANY'S MARKETS INCLUDE THE MIDATLANTIC MIDWEST SOUTHEAST SOUTHWEST AND WESTERN REGIONS OF THE US MR HORTON SAID THE COMPANY IS CONFIDENT 1994 WILL MARK ANOTHER YEAR OF RECORD EARNINGS AT DR HORTON 9402080137 940208 GIANT GROUP HIRES ADVISER TO EXPLORE POSSIBLE SALE OF UNITS BEVERLY HILLS CALIF GIANT GROUP LTD A CEMENTMAKING CONCERN CONTROLLED BY FINANCIER BURT SUGARMAN SAID IT HIRED PAINEWEBBER INC AS FINANCIAL ADVISER TO EXPLORE THE POSSIBLE SALE OF GIANT'S CEMENT OPERATIONS OR OTHER WAYS OF INCREASING SHAREHOLDER VALUE MR SUGARMAN WHO IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GIANT AND OWNS 42 OF ITS SHARES SAID IN A NEWS RELEASE THAT THE COMPANY'S STOCK PRICE FAILS TO REFLECT THE UNDERLYING VALUE OF GIANT'S ASSETS PARTICULARLY OUR CEMENT OPERATIONS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GIANT GROUP SHARES JUMPED 1 A SHARE OR 88 TO CLOSE AT 12375 BESIDES ITS GIANT CEMENT CO AND KEYSTONE CEMENT CO UNITS GIANT GROUP HOLDS A 38 INTEREST IN RALLY'S HAMBURGERS INC A TROUBLED LOUISVILLE KY FASTFOOD CONCERN LAST WEEK MR SUGARMAN RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF RALLY'S AND WAS SUCCEEDED BY D RANDY LANEY GARY PECHOTA PRESIDENT OF THE GIANT CEMENT AND KEYSTONE CEMENT UNITS SAID THE CEMENT INDUSTRY WAS IN THE EARLY STAGES OF A PROJECTED LONGTERM RECOVERY WITH HIGHER DEMAND AND BETTER PRICING IN SOME REGIONS GIANT'S CEMENT OPERATIONS ARE ALSO INVOLVED IN BURNING WASTE MATERIAL FOR FUEL MR SUGARMAN WHO ALSO HAS A TELEVISION AND FILM PRODUCTION COMPANY FOR A TIME IN 1987 HELD TALKS ABOUT SELLING GIANT'S CEMENT OPERATIONS AS PART OF AN EFFORT TO TAKE GIANT INTO SEVERAL OTHER BUSINESSES IN THE LARGEST SUCH DIVERSIFICATION ATTEMPT THE EXECUTIVE THROUGH GIANT AND AN AFFILIATE COMPANY LAUNCHED A HOSTILE TAKEOVER BATTLE IN 1988 FOR MEDIA GENERAL INC THE BATTLE ENDED WHEN MEDIA GENERAL THE RICHMOND VA PUBLISHING AND BROADCASTING CONCERN BOUGHT BACK MR SUGARMAN'S SHARES IN A TRANSACTION VALUED AT ABOUT 100 MILLION 9402080136 940208 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION APPLEBEE'S INTERNATIONAL INC A SHELF OFFERING OF 1276596 COMMON SHARES COMMONWEALTH OF AUSTRALIA A SHELF OFFERING OF 450 MILLION OF DEBT SECURITIES GREATER CHINA FUND INC AN OFFERING OF NONTRANSFERABLE RIGHTS TO SUBSCRIBE TO 2254849 COMMON SHARES VIA PAINEWEBBER GROUP INC HD VEST INC AN OFFERING OF 15 MILLION COMMON SHARES 9402080135 940208 BANYAN SYSTEMS INC ACQUISITION WESTBORO MASS BANYAN SYSTEMS INC SAID IT AGREED TO ACQUIRE BEYOND INC A CLOSELY HELD BURLINGTON MASS DEVELOPER OF ELECTRONIC MESSAGING SYSTEMS FOR 175 MILLION THE ACQUISITION EXPECTED TO BE COMPLETED DURING THE FIRST QUARTER COULD RESULT IN A ONETIME CHARGE OF ABOUT 11 MILLION IN THE QUARTER BANYAN SAID THE NETWORKING SOFTWARE PRODUCT CONCERN SAID THE ACQUISITION WILL ENABLE IT TO INTEGRATE ITS MESSAGING TECHNOLOGY WITH BEYOND'S PRODUCTS TO ALLOW MUTUAL CUSTOMERS TO LINK DIFFERENT TYPES OF COMPUTERS INTO CLIENTSERVER NETWORKS 9402080134 940208 TECHNOLOGY THREE WESTERN COMPANIES WIN LICENSES FOR MOBILEPHONE SYSTEMS IN RUSSIA BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON U S WEST INC TELECOM FINLAND AND DEUTSCHE BUNDESPOST TELEKOM EMERGED AS THE BIGGEST WINNERS IN THE LATEST ROUND OF MOBILETELEPHONE LICENSES AWARDED BY THE RUSSIAN GOVERNMENT THE BIDDING RESULTS INDICATED HOWEVER THAT WESTERN INVESTORS' INTEREST IN RUSSIAN MOBILE TELEPHONES MAY HAVE PEAKED LICENSEES WERE CHOSEN FOR FEWER THAN HALF OF THE 67 CITY FRANCHISES OFFERED PARTLY BECAUSE TOO FEW BIDDERS EMERGED FOR SOME OF THE CITIES SAID WESTERN PHONECOMPANY EXECUTIVES THE THREE WESTERN PHONE COMPANIES ALREADY AMONG THE LARGEST INVESTORS IN EAST EUROPEAN TELECOMMUNICATIONS WERE EACH SELECTED TO BUILD FOUR NEW CELLULAR TELEPHONE SYSTEMS IN CITIES SCATTERED ACROSS RUSSIA THE GOVERNMENT DIDN'T MAKE A FORMAL ANNOUNCEMENT OF THE LICENSE AWARDS BUT RATHER INFORMED THE WINNING BIDDERS QUIETLY LAST WEEK SINCE THE BREAKUP OF THE SOVIET UNION IN 1991 WESTERN PHONE COMPANIES HAVE BEEN TARGETING CELLULAR TELEPHONES AS ONE OF THE FASTEST WAYS TO MAKE MONEY IN RUSSIA THEIR USERS ARE AMONG THE FEW PEOPLE IN RUSSIA WITH PLENTY OF CASH WESTERNERS LIVING THERE AND RUSSIAN BUSINESSMEN WORKING WITH THEM MOSCOW'S FIRST ROUND OF 12 DIGITAL CELLULAR LICENSES ISSUED LAST YEAR DREW MANY WESTERN BIDS BUT THOSE WERE FOR RUSSIA'S BIGGEST AND WEALTHIEST CITIES INCLUDING MOSCOW AND ST PETERSBURG BY CONTRAST THE LATEST ROUND OF BIDDING WAS FOR GENERALLY SMALLER OR POORER CITIES SUCH AS MURMANSK AND ROSTOV AS THE BIDDING PROGRESSED LAST AUTUMN EXECUTIVES OF SEVERAL WESTERN COMPANIES INCLUDING U S WEST AND GERMANY'S STATE PHONE COMPANY SAID THEY WERE BEING MORE SELECTIVE THE FIRST ROUND WAS MORE ATTRACTIVE SAID HANS KERLER HEAD OF INTERNATIONAL RELATIONS FOR DEUTSCHE TELEKOM'S MOBILEPHONE DIVISION CALLED DETEMOBIL ACCORDING TO A LIST COMPILED BY ONE WESTERN PHONE COMPANY WINNERS WERE NAMED FOR JUST 33 OF THE 67 FRANCHISES BEING OFFERED 11 WERE FOR STATEOFTHE ART SOCALLED GSM NETWORKS AND 22 WERE FOR OLDERTECHNOLOGY NMT450 SYSTEMS INTERFAX BUSINESS REPORT A RUSSIAN NEWS SERVICE REPORTED 11 GMS AWARDS AND JUST 19 NMT450 LICENSES A MINISTRY SPOKESMAN COULDN'T BE REACHED LAST NIGHT TO CONFIRM THE CORRECT FIGURE WHAT HAPPENED WITH THE UNASSIGNED FRANCHISES ISN'T CLEARTHOUGH IN SOME CASES IT APPEARED THAT TOO FEW BIDDERS HAD STEPPED FORWARD FORCING THE MINISTRY TO POSTPONE A DECISION IN THE CASE OF THE MURMANSK FRANCHISE THE MINISTRY FORMALLY WITHDREW ITS OFFER BECAUSE ONLY ONE BIDDER EMERGED INTERFAX SAID UNLIKE HUNGARY WHERE BIDDING WARS HAVE ERUPTED OVER CELLULAR LICENSES THE MINISTRY IN RUSSIA HADN'T PROPOSED CHARGING WESTERNERS ANYTHING BEYOND AN ADMINISTRATIVE FEE INSTEAD WESTERNERS COMMIT TO BUILD SYSTEMS ACCORDING TO SCHEDULES NEGOTIATED WITH THE MINISTRY THOSE DETAILED TALKS ABOUT THE TERMS OF NEW LICENSES ARE LIKELY TO BEGIN SOON DEUTSCHE TELEKOM'S FOUR NEW SYSTEMS IN PSKOV NOVGOROD TVER AND KALININGRAD MAY COST ROUGHLY 33 MILLION TO 40 MILLION TO BUILD MR KERLER INDICATED HE SAID ALL FOUR ARE NEAR MOSCOW WHERE DEUTSCHE TELEKOM IS ALREADY AN INVESTOR IN ANOTHER DIGITAL CELLULAR SYSTEM UNDER CONSTRUCTION FOR AT LEAST 60 MILLION U S WEST IS FOLLOWING A SIMILAR STRATEGY OF GROUPING ITS LICENSES GEOGRAPHICALLY THREE OF ITS FOUR NEW LICENSES ARE IN VOLGOGRAD KRASNODAR AND ROSTOV SOUTHERN RUSSIAN CITIES CLOSE ENOUGH TO ALLOW THE COMPANY TO BUILD ONE NETWORK FOR ALL THREE A SPOKESWOMAN SAID THE FOURTH UDMIRTIYA IS NEAR AN EARLIER U S WEST FRANCHISE IN PERM THE FOUR NEW DIGITAL LICENSES ARE IN ADDITION TO EIGHT AWARDED LAST YEAR TELECOM FINLAND'S FOUR AWARDS WERE IN KARELIYA ARCHANGELSK PSKOV AND NOVGOROD THE LAST TWO CITIES WILL HAVE TWO SYSTEMSONE INVOLVING TELECOM FINLAND AND THE OTHER DEUTSCHE TELEKOM 9402080133 940208 INTERNATIONAL FIRM LIFTS VOTING STAKE IN BSN PARIS IFILFINANZIARIA DI PARTECIPAZIONI SPA THE INDUSTRIAL HOLDING COMPANY OF THE FIAT GROUP INCREASED ITS VOTING RIGHTS IN FRENCH FOOD AND DRINKS GROUP BSN THE ITALIAN COMPANY NOW CONTROLS 899 OF BSN'S VOTING RIGHTS COMPARED WITH 472 PREVIOUSLY UNDER BSN'S BYLAWS INVESTORS WHO HOLD NOMINATIVE SHARES IN THE COMPANY AND WHO KEEP THEIR SHARES FOR AT LEAST TWO YEARS AUTOMATICALLY RECEIVE INCREASED VOTING RIGHTS 9402080132 940208 TECHNOLOGY DNA PLANT BOOSTS DISTRIBUTION CINNAMINSON NJ DNA PLANT TECHNOLOGY CORP SAID IT EXPANDED DISTRIBUTION OF ITS SPECIALLY BRED TOMATOES CARROTS AND SWEET MINIPEPPER THE COMPANY WHICH DEVELOPS AND MARKETS FRUITS AND VEGETABLES THROUGH BIOTECHNOLOGICAL BREEDING AND GENETIC ENGINEERING SAID ITS LONGERLIFE TOMATOES ARE SOLD BY EIGHT SUPERMARKET CHAINS IN FIVE STATES AND ITS CARROTS ARE SOLD IN 22 STATES AND CANADA THE SWEET PEPPER DEVELOPED BY CROSSING A BELL PEPPER WITH A JALAPENO IS NOW SOLD IN SEVEN STATES 9402080131 940208 INTERNATIONAL CIBAGEIGY'S VENTURES IN CHINA BASEL SWITZERLAND SWISS DRUGS AND CHEMICALS GROUP CIBAGEIGY AG ANNOUNCED TWO NEW VENTURES IN CHINA IN ONE TRANSACTION CIBA SET UP A COMPANY CIBA AGRO JIANGSU LTD WITH CAPITAL OF 18 MILLION SWISS FRANCS PLANT PROTECTION PRODUCTS WILL BE PRODUCED AT AND MARKETED BEGINNING IN 1996 IN THE SECOND TRANSACTION CIBA PIGMENTS DIVISION AND QINGDAO DYESTUFFS FACTORY SIGNED A PACT TO SET UP A JOINT VENTURE 9402080130 940208 MARKETING & MEDIA ALLIANCE ENTERTAINMENT PURCHASE NEW YORK ALLIANCE ENTERTAINMENT CORP COMPLETED ITS PURCHASE OF CLOSELY HELD AIRLIE INC KNOWN AS ABBEY ROAD DISTRIBUTORS FOR 355 MILLION IN CASH COMMON STOCK AND NOTES ABBEY ROAD BASED IN SANTA ANA CALIF IS A WEST COAST WHOLESALE DISTRIBUTOR OF RECORDED MUSIC THAT EARNED 48 MILLION ON REVENUE OF 807 MILLION FOR THE FISCAL YEAR ENDED AUG 31 1993 ALLIANCE A WHOLESALE DISTRIBUTOR OF PRERECORDED MUSIC GENERATED AN ESTIMATED 285 MILLION IN REVENUE IN 1993 THE COMPANY WENT PUBLIC LAST DECEMBER AND IS TRADED ON THE NASDAQ STOCK MARKET 9402080129 940208 TURNER PLEDGES MONEY TO SCHOOLS ATLANTA TED TURNER THE BILLIONAIRE CHAIRMAN OF TURNER BROADCASTING SYSTEM INC PLEDGED A TOTAL OF 75 MILLION TO THREE SCHOOLS BROWN UNIVERSITY THE CITADEL AND THE MCCALLIE SCHOOL A PREPARATORY INSTITUTION OVER TIME WILL EACH RECEIVE 25 MILLION THE SCHOOLS WHICH WERE ATTENDED BY MR TURNER AND/OR HIS SONS WILL GET THE MONEY IN 1 MILLION ANNUAL INCREMENTS OVER FIVE YEARS THE REMAINDER OF THE PLEDGE IS IN THE FORM OF A CHARITABLE TRUST THAT IS TODAY VALUED AT 60 MILLION IT WILL BE DIVIDED EQUALLY BY THE THREE SCHOOLS UPON MR TURNER'S DEATH 9402080128 940208 MARKETING & MEDIA POLAROID CORP LAUNCHES CAMERA CAMBRIDGE MASS POLAROID CORP FORMALLY LAUNCHED ITS PROCAM INSTANT CAMERA IN THE US AT A RETAIL PRICE OF 199 TO 250 PROCAM POLAROID'S FIRST CAMERA DESIGNED FOR BUSINESS USERS HAS AUTOMATIC FOCUS AND EXTENDED FLASH CAPABILITIES AS WELL AS RUBBER HANDLES AND A HEAVY STRAP TO WITHSTAND HIGHVOLUME USE POLAROID SAID THE CAMERA CONCERN SAID PROCAM HAD STRONG INITIAL SALES IN EUROPE AND JAPAN WHERE IT WAS INTRODUCED IN 1992 AND 1993 RESPECTIVELY THE COMPANY DECLINED TO DISCLOSE SALES LEVELSEND 9402080127 940208 TRAVEL SMOKERS FIND TRAVEL INDUSTRY IS INHOSPITABLE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TONY VANELLA WANTS A CIGARETTE BUT THE TRAVEL INDUSTRY WON'T LET HIM THE EXECUTIVE VICE PRESIDENT FOR A CHICAGOAREA TRAVEL AGENCY HAS BEEN SHOOED OUTDOORS FROM NOSMOKING AIRPORTS IN MIAMI AND DALLAS HE'S ENCOUNTERED A NO SMOKING SIGN ON A HERTZ DASHBOARD IN SEATTLE HE COULDN'T LIGHT UP IN A NEW YORK TAXI AND HE COULDN'T GET AN ASHTRAY IN HIS RITZCARLTON ROOM IN CHICAGO A WATER GLASS WORKED JUST AS WELL MR VANELLA SAYS THE TRAVEL INDUSTRY HAS DECLARED WAR ON THE MARLBORO MAN FOUR YEARS AFTER FEDERAL REGULATIONS PROMPTED US AIRLINES TO BAN SMOKING ON DOMESTIC FLIGHTS UAL CORP'S UNITED AIRLINES AND NORTHWEST AIRLINES ARE BANISHING IT IN FIRSTCLASS ON SOME INTERNATIONAL FLIGHTS HERTZ CORP BARS SMOKING IN 80 OF ITS FLEET MARRIOTT CORP IS PUSHING UP THE NUMBER OF ITS NONSMOKING ROOMS THIS YEAR TO 70 FROM 50 WHAT'S EMERGING INDUSTRY EXECUTIVES SAY IS THE SMOKEFREE TRAVEL EXPERIENCE WHERE PUFFING IS PROHIBITED ON EVERYTHING FROM HALFDAY INTERNATIONAL FLIGHTS TO THREEMINUTE AIRPORT SHUTTLES WITH NEARLY THREEQUARTERS OF AMERICANS AS NONSMOKERS MARKET FORCES HAVE DRIVEN THE CHANGES AS CLEAN AIR LIKE SECURITY HAS BECOME AN IMPORTANT SERVICE AMENITY WHILE SMOKING BANS ARE DIFFICULT TO ENFORCE AND THEIR SUCCESS CAN'T EASILY BE QUANTIFIED TRAVEL EXECUTIVES SAY CONSUMERS WILL REWARD SUPPLIERS WITH THE TOUGHEST RESTRICTIONS YOU WILL LOSE CUSTOMERS IF YOU DON'T OFFER SMOKEFREE ROOMS SAYS ARNIE QUIRION GENERAL MANAGER AT THE HILTON HOTEL IN MCLEAN VA WHICH BANS SMOKING IN 70 OF ITS 457 ROOMS MR QUIRION PREDICTS THAT ALL THE HOTEL'S ROOMS WILL BE NONSMOKING WITHIN FIVE YEARS TO SOME EXTENT HOTELS AND AIRPORTS ARE IMPOSING SMOKING BANS TO COMPLY WITH LOCAL ORDINANCES THE ASHTRAY REBELLION HAS SPREAD TO MORE AND MORE RESTAURANTS CLUBS OFFICE BUILDINGS AND OTHER GATHERING PLACES AS EVIDENCE MOUNTS THAT PASSIVE SMOKING IS HARMFUL YESTERDAY A CONGRESSIONAL SUBCOMMITTEE HEARD TESTIMONY ON A PROPOSAL TO BAN SMOKING IN ALL NONRESIDENTIAL BUILDINGS NATIONWIDE BUT SMOKERS SAY PROHIBITIONS IN RENTAL CARS AND HOTEL ROOMS ARE ASSAULTS ON THEIR PRIVACY IT STRIKES ME AS GROSSLY UNJUST SAY MR VANELLA WHO SMOKES A PACK A DAY NONSMOKERS SAY THE INJUSTICE IS SMELLING TOBACCO FROM A PREVIOUS HOTEL GUEST OR RENTALCAR DRIVER FOR SOME SMOKERS NICOTINE IS A FACTOR IN CHOOSING FLIGHT ITINERARIES FOR TERRY J LITTLE FLIGHTS OF MORE THAN FIVE HOURS ARE ALMOST UNBEARABLE SO WHEN MR LITTLE A MANAGER FOR A WALLCOATINGS COMPANY FLIES FROM HIS HOMETOWN OF HOUSTON TO HAWAII HE PLANS A STOP AT LOS ANGELES INTERNATIONAL AIRPORT WHERE HE CAN SERVE HIS TWOPACKADAY HABIT MR LITTLE RECOGNIZES THAT THE TIDE HAS TURNED AGAINST HIM WHEN I FIRST STARTED TRAVELING IN THE MID '70S SMOKING OR NONSMOKING WAS NEVER AN ISSUE HE SAYS THEN YOU HAD TO REQUEST SPECIAL ACCOMMODATIONS IF YOU WERE NOT A SMOKER NOW YOU HAVE TO REQUEST SPECIAL ACCOMMODATIONS IF YOU ARE A SMOKER THE TOBACCO INDUSTRY IS DOING WHAT IT CAN TO KEEP THE FLAME ALIVE PHILIP MORRIS COS IS SUBSIDIZING CONSTRUCTION OF 10 SMOKING LOUNGES AT HARTSFIELD ATLANTA INTERNATIONAL AIRPORT WHERE SMOKING IS PERMITTED ONLY IN BARS ASKED ABOUT THE TRAVEL INDUSTRY'S CRACKDOWN ON SMOKERS A PHILIP MORRIS SPOKESWOMAN SAYS ANY ISSUE THAT IS OF CONCERN TO OUR CONSUMERS IS OF CONCERN TO US PHILIP MORRIS THE COUNTRY'S LARGEST CIGARETTE MAKER HAS SUED THE CITY OF SAN FRANCISCO OVER ITS SMOKING BAN MANY SMOKERS ACCUSE TRAVEL EXECUTIVES OF STAMPING OUT CIGARETTES TO CUT DOWN ON MAINTENANCE EXPENSES AND CIGARETTERELATED DAMAGE TO PROPERTY PARTICULARLY IN HOTEL ROOMS THERE'S LESS CLEANING UP TO DO THERE'S LESS PAINTING AND MAYBE IT REDUCES INSURANCE SAYS A NEW YORK ADVERTISING EXECUTIVE WHO ONCE CHANGED ROOMS FOUR TIMES IN A TEXAS HOTEL BEFORE FINDING ONE THAT PERMITTED SMOKING BUT HOTEL EXECUTIVES SAY SMOKING BANS DON'T REDUCE INSURANCE OR CLEANING COSTS IN FACT THEY SAY NOSMOKING ROOMS RAISE COSTS BECAUSE EVERY TIME A GUEST VIOLATES THE BAN THE HOTEL MUST PAY FOR THINGS LIKE RUG AND DRAPE CLEANINGS TO PURGE THE TOBACCO SMELL HOTEL MANAGERS AND OTHER TRAVEL EXECUTIVES SAY THE NOSMOKING TREND COMES FROM CUSTOMERS IN SEARCH OF PURE AIR TO COME INTO A CLEANSMELLING FRESH ROOM WITH NO STALE ODORS IT'S WONDERFUL SAYS JOHN SCHMIDT GENERAL MANAGER OF BEST WESTERN'S SEVEN SEAS HOTEL IN SAN DIEGO WHICH CONVERTED HALF ITS ROOMS TO NONSMOKING AS A PRACTICAL MATTER SMOKERS WHO NEED A FIX WILL FIND A WAY WRITER FRAN LEBOWITZ FOR EXAMPLE CONCEDED IN TRAVEL & LEISURE MAGAZINE THAT SHE'S BEEN CAUGHT A DOZEN TIMES SNEAKING CIGARETTES IN AIRPLANES WITHOUT PENALTY HOTEL AND CARRENTAL EXECUTIVES CONCEDE THAT ENFORCEMENT OF NOSMOKING POLICIES IS ESSENTIALLY IMPOSSIBLE AND THEY ARE NOT ABOUT TO ANTAGONIZE A CUSTOMER AND LOSE BUSINESS OVER SOME ASHES 9402080126 940208 INTERNATIONAL FOREIGN INVESTMENT IN VENEZUELA CARACAS VENEZUELA FOREIGN INVESTMENT IN VENEZUELA EXCLUDING OIL PETROCHEMICALS COAL INSURANCE AND BANKING ROSE TO 25 MILLION IN JANUARY THE SUPERINTENDENCY OF FOREIGN INVESTMENT SAID THE FIGURE IS UP FROM 207 MILLION IN JANUARY 1992 BUT STILL ONLY A FRACTION OF THE FIGURE OF 1216 MILLION IN JANUARY 1991 INVESTMENT FROM THE US ACCOUNTED FOR 81 OF THE TOTAL WHILE INVESTMENT FROM COLOMBIA ACCOUNTED FOR 10 ABOUT 80 OF INVESTMENT WAS IN FINANCES AND SERVICES AND 134 WAS IN MANUFACTURING AFTER SURGING STRONGLY IN 1990 AND 1991 FOREIGN INVESTMENT IN VENEZUELA TRAILED OFF FOLLOWING THE FIRST OF TWO COUP ATTEMPTS ON FEB 4 1992 9402080125 940208 WHO'S NEWS BC GAS INC BC GAS INC VANCOUVER BRITISH COLUMBIA MICHAEL BURNS 55 WAS NAMED PRESIDENT OF THIS HOLDING COMPANY'S INLAND PACIFIC ENTERPRISES LTD UNIT A COMPANY BC GAS CREATED TO HOLD ITS NONUTILITIES INVESTMENTS BC GAS SAID PATRICK LLOYD 42 WILL SUCCEED MR BURNS AS EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION OF ITS BC GAS UTILITY LTD UNIT MR LLOYD IS THE GAS UTILITY'S CORPORATE SECRETARY AS WELL AS SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT AND GAS SUPPLY BC GAS ALSO ANNOUNCED A REORGANIZATION INTO THREE BUSINESS UNITS BC GAS UTILITY INLAND PACIFIC AND A 67OWNED OIL PIPELINE SUBSIDIARY TRANS MOUNTAIN PIPE LINE CO 9402080124 940208 TECHNOLOGY MYLAN BUYS RIGHTS TO DRUG PITTSBURGH MYLAN LABORATORIES INC SAID ITS MYLAN PHARMACEUTICALS INC UNIT ACQUIRED THE EXCLUSIVE RIGHT TO A GENERIC FORMULATION OF SELDANED AN ALLERGY MEDICATION FROM A UNIT OF ANDRX CORP A PRIVATE BIOTECHNOLOGY COMPANY BASED IN FORT LAUDERDALE FLA TERMS WEREN'T DISCLOSED MYLAN SAID IT NOW HAS THE EXCLUSIVE RIGHT TO MAKE USE PROMOTE AND SELL A GENERIC SUSTAINEDRELEASE FORMULATION OF SELDANE OR TERFENADINE/PSEUDOEPHEDRINE HYDROCHLORIDE IN THE US PUERTO RICO AND CANADA MYLAN A GENERICDRUG COMPANY WILL DEVELOP THE PRODUCT JOINTLY WITH ANDRX'S ANDA SR PHARMACEUTICALS INC SELDANE IS MADE BY MARION MERRELL DOW INC A UNIT OF DOW CHEMICAL CO 9402080123 940208 CANADA TO INTRODUCE BILL AIMED AT HALTING LONGSHOREMEN'S STRIKE OTTAWA THE CANADIAN GOVERNMENT INTENDS TO INTRODUCE LEGISLATION TODAY TO END A 12DAYOLD WORK STOPPAGE BY LONGSHOREMEN THAT HAS SHUT DOWN CANADA'S WEST COAST PORTS THE STOPPAGE HAS HALTED SHIPMENTS OF GRAIN LUMBER AND OTHER COMMODITIES THE DISPUTE INVOLVES CONTRACT DEMANDS OF MEMBERS OF THE INTERNATIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION THE LONGSHOREMEN HAVE BEEN WITHOUT A CONTRACT SINCE DECEMBER 1992 THE EMPLOYERS ARE REPRESENTED BY THE BRITISH COLUMBIA MARITIME EMPLOYERS' ASSOCIATION THE MAIN ISSUE IN THE DISPUTE IS THE LONGSHOREMEN'S DEMAND FOR 220 CANADIAN DOLLAR US164 INCREASE OVER THREE YEARS IN THEIR HOURLY BASE RATE OF C2141 THE LAST MAJOR WEST COAST PORT SHUTDOWN IN 1986 WAS ENDED BY LEGISLATION 9402080122 940208 TECHNOLOGY HOSPITALS ARE URGED TO USE CLOT DISSOLVERS IN HEARTATTACK CASES WASHINGTON A PROGRAM ADMINISTERED BY THE NATIONAL HEART LUNG AND BLOOD INSTITUTE RECOMMENDED THAT EMERGENCY DEPARTMENTS TRY TO TREAT HEARTATTACK PATIENTS WITH CLOTDISSOLVING DRUGS WITHIN 30 MINUTES OF THEIR ARRIVAL AT THE HOSPITAL THE NATIONAL HEART ATTACK ALERT PROGRAM A GROUP OF SCIENTIFIC GOVERNMENT AND VOLUNTARY ORGANIZATIONS ISSUED A REPORT CALLING ON HOSPITAL EMERGENCY DEPARTMENTS TO REDUCE DELAYS IN TREATING HEARTATTACK PATIENTS IN A STATEMENT DR COSTAS LAMBREW COCHAIRMAN OF THE PROGRAM'S WORKING GROUP SAID NOT EVERY HEARTATTACK PATIENT IS A CANDIDATE FOR CLOTDISSOLVING DRUGS BUT TOO FEW PATIENTS ARE BEING TREATED WITH THROMBOLYTIC THERAPY OR THE USE OF DRUGS TO FIGHT CLOTTING A SPOKESMAN FOR GENENTECH INC A SOUTH SAN FRANCISCO BIOTECHNOLOGY CONCERN SAID THE REPORT HOLDS THE PROMISE THAT IF THESE RECOMMENDATIONS ARE ADOPTED ACROSS THE COUNTRY YOU'LL SEE MORE PATIENTS TREATED WITH THROMBOLYTIC AGENTS GENENTECH WHICH SELLS TPA THE MOST EXPENSIVE CLOTDISSOLVING DRUG HOLDS ABOUT TWOTHIRDS OF THE MARKET FOR SUCH PRODUCTS 9402080121 940208 T2 MEDICAL INC 3 OTHER FIRMS AGREE TO MERGER COMBINATION IS TO INCLUDE MEDISYS HEALTHINFUSION AND CURAFLEX HEALTH BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL T2 MEDICAL INC HURT IN RECENT MONTHS BY INTERNAL TURMOIL AND INCREASING COMPETITION SAID IT AGREED TO MERGE WITH THREE OTHER HEALTHCARE COMPANIES IN A COMBINATION THAT WOULD CREATE THE COUNTRY'S SECONDLARGEST INFUSIONTHERAPY CONCERN UNDER THE TERMS OF THE AGREEMENT T2 MEDICAL SHAREHOLDERS WOULD RECEIVE 67 OWNERSHIP IN A COMPANY CREATED BY A POOLING OF INTERESTS AMONG T2 MEDICAL CURAFLEX HEALTH SERVICES INC HEALTHINFUSION INC AND MEDISYS INC THE LATTER THREE COMPANIES IN DECEMBER DISCLOSED PLANS TO MERGE WITH ONE ANOTHER FOR T2 MEDICAL THE MERGER COULD PROVIDE A GRACEFUL EXIT FROM MYRIAD PROBLEMS THE COMPANY HAS BEEN REELING FROM THE DISCLOSURE IN AUGUST OF ACCOUNTING IRREGULARITIES AND ERRORS AND A SUBSEQUENT INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY HAS ALSO BEEN A SUBJECT OF A MEDICARE FRAUD INVESTIGATION BY THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH IS TRYING TO DETERMINE WHETHER T2 DOCTORS IMPROPERLY REFERRED PATIENTS TO CENTERS IN WHICH THEY HAVE OWNERSHIP STAKES T2 HAS DENIED ANY WRONGDOING AND EMPHASIZES THAT MOST OF ITS REFERRALS COME FROM PHYSICIANS WHO DON'T HAVE DIRECT OWNERSHIP IN T2 CENTERS THE MERGER WOULD ALLOW THE COMPANY WHICH IS BASED IN ALPHARETTA GA TO DISENGAGE FROM ITS RELATIONSHIPS WITH ITS DOCTOROWNERS T2 MEDICAL SAID IT NOW PLANS TO BUY OUT PHYSICIANS WHO HAVE OWNERSHIP STAKES IN ITS CENTERS AFTER THE MERGER SOME 75 MILLION RESTRICTED T2 SHARES HELD BY OTHER DOCTORS WILL BECOME UNRESTRICTED THE COMPANY SAID INSTEAD OF HAVING TO RELY PRIMARILY ON DOCTOR REFERRALS TO GENERATE NEW BUSINESS T2 WOULD THEN BE ABLE TO USE THE SALES FORCE OF THE COMBINED COMPANIES PREVIOUSLY IT ONLY HAD A TINY SALES FORCE OF ITS OWN FOR CURAFLEX HEALTHINFUSION AND MEDISYS THE ADDITION OF T2 CREATES A 220CENTER NATIONWIDE NETWORK THAT WILL BE MORE COMPETITIVE THAN ANY OF THE COMPANIES COULD HAVE BEEN INDIVIDUALLY THE NEW INFUSIONTHERAPY CONCERN TO BE CALLED CORAM HEALTHCARE CORP WILL BE SECOND IN SIZE TO CAREMARK INTERNATIONAL INC WHICH HAD 1993 SALES OF 178 BILLION THE COMBINED COMPANIES WHICH DELIVER DRUGS INTRAVENOUSLY EITHER IN THE HOME OR IN OUTPATIENT CENTERS WILL HAVE ANNUAL REVENUE OF ABOUT 500 MILLION ABOUT 60 OF THE FOUR COMPANIES' COMBINED 220 THERAPY CENTERS OVERLAP ACCORDING TO A COMPANY EXECUTIVE WHO SAID APPROXIMATELY 10 MILLION CAN BE SAVED THROUGH CONSOLIDATION CHARLES A LAVERTY CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CURAFLEX WILL SERVE AS PRESIDENT AND CEO OF THE NEW COMPANY MR LAVERTY SAID HE EXPECTS AN INDIVIDUAL FROM OUTSIDE THE COMPANIES TO BE NAMED CHAIRMAN OF CORAM HEALTHCARE IN ABOUT TWO WEEKS EXECUTIVES AT T2 MEDICAL WILL ASSUME LESSER ROLES TOMMY CARTER T2 MEDICAL'S PRESIDENT AND CEO WILL BE VICE CHAIRMAN OF CORAM AND THOMAS E HAIRE T2 MEDICAL'S CHAIRMAN WILL HOLD NO OFFICIAL POSITION IN THE NEW COMPANY T2 MEDICAL'S STOCK ROSE 125 CENTS TO 8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CURAFLEX FELL 625 CENTS TO 5625 HEALTHINFUSION FELL 875 CENTS TO 6125 AND MEDISYS FELL 625 CENTS TO 350 ALL IN NASDAQ STOCK MARKET TRADING T2 WAS ONCE A HIGHFLIER WHOSE STOCK SOLD FOR AS MUCH AS 67 A SHARE IN JANUARY 1992 THE COMPANY'S PROBLEMS BEGAN WHEN ITS DOCTOROWNERSHIP ARRANGEMENTS CAME UNDER SCRUTINY IN 1992 THE COMPANY DISCLOSED ACCOUNTING IRREGULARITIES RELATING PRIMARILY TO THE UNDERESTIMATION OF BAD DEBT IN AUGUST A NUMBER OF KEY EXECUTIVES HAVE SINCE DEPARTED FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 THE COMPANY POSTED A 42 EARNINGS DECLINE TO 81 MILLION FROM 141 MILLION FOR THE YEAREARLIER PERIOD REVENUE FELL 11 TO 637 MILLION FROM 718 MILLION T2 MEDICAL ATTRIBUTED THE DROP TO CONTINUED PRICING PRESSURE THROUGHOUT THE HEALTHCARE INDUSTRY CURAFLEX IS BASED IN ONTARIO CALIF HEALTHINFUSION IN MIAMI AND MEDISYS IN MINNEAPOLIS 9402080120 940208 THE CLINTON BUDGET BANK RULES MAY CHANGE IN BID TO CUT FUTURE RISKS TO SYSTEM BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S NEW BUDGET RAISES THE POSSIBILITY OF SHARP CHANGES IN BANK REGULATION IN ORDER TO REDUCE POTENTIAL FUTURE RISKS TO THE FINANCIAL SYSTEM THE CHANGES INCLUDE NEW ACCOUNTING STANDARDS THAT WOULD REQUIRE BANKS TO VALUE THEIR ASSETS AT MARKET RATHER THAN HISTORICAL PRICES THIS CHANGE HAS BEEN RECOMMENDED BY THE GENERAL ACCOUNTING OFFICE BUT IS OPPOSED BY THE BANKING INDUSTRY AND THE FEDERAL RESERVE BOARD IN ADDITION THE BUDGET SUGGESTS THAT EXTREMELY HEALTHY BANKS COULD BOLSTER THEIR INCOME IN THE FACE OF MOUNTING COMPETITION BY UNDERWRITING THE DISTRIBUTION OF EQUITY SECURITIES AND INSURANCE THIS EXPANSION OF BANK POWERS WOULD REQUIRE A REPEAL OF DEPRESSIONERA LAWS THAT SEPARATE THE BANKING AND SECURITIES INDUSTRIES BOTH THESE SUGGESTED CHANGES ARE DISCUSSED BUT NOT ACTUALLY PROPOSED IN A VOLUME OF ANALYSIS THAT ACCOMPANIES THE BUDGET MR CLINTON SENT TO CONGRESS YESTERDAY THEY GO WELL BEYOND PREVIOUSLY STATED ADMINISTRATION POSITIONS THE RENEWED HEALTH OF THE BANKING SYSTEM IS GENERATING A BUDGET WINDFALL BUT THE ADMINISTRATION WARNS THAT A FAILURE IN THE FASTPACED FINANCIALDERIVATIVES MARKET COULD CAUSE FUTURE BUDGET STRAINS AGENCIES THAT INSURE BANK AND THRIFT DEPOSITS WILL TAKE IN 366 BILLION MORE THAN THEY PAY OUT IN THE FIVE YEARS STARTING IN FISCAL YEAR 1995 WHICH STARTS NEXT OCT 1 THE BUDGET NOTES WITH BANK AND THRIFT PROFITS RUNNING AT RECORD LEVELS FINANCIAL FAILURES ARE DOWN SHARPLY FROM SEVERAL YEARS AGO COLLECTIONS FROM DEPOSITINSURANCE PREMIUMS AND THE SALES OF ASSETS OF FAILED BANKS AND THRIFTS WILL RUN SHARPLY HIGHER THAN COSTS TO THE FUNDS BUT THE BUDGET WARNS THAT THE HEALTH OF THE BANKING SYSTEM FACES POSSIBLE CHALLENGES INCLUDING POTENTIALLY A JOLT FROM A BANK FAILURE TIED TO PROBLEMS IN THE MARKET FOR DERIVATIVES THESE ARE COMPLEX HEDGING INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGNEXCHANGE RATES AND COMMODITIES PRICES THE DIFFICULTY OF OVERSEEING THESE TRANSACTIONS WHEN COUPLED WITH THE MORAL HAZARD CREATED BY DEPOSIT INSURANCE PRESENTS AN OPPORTUNITY FOR ABUSE WITHIN THE BANKING INDUSTRY THAT COULD LEAD TO LOSSES THAT INCREASE THE EXPOSURE OF THE FEDERAL GOVERNMENT TO DEPOSIT INSURANCE CLAIMS A BUDGET ANALYSIS SAYS ALL BANK REGULATORS ARE BEEFING UP THEIR SUPERVISION OF THE MULTITRILLION DOLLAR DERIVATIVES MARKET AND TREASURY SECRETARY LLOYD BENTSEN RECENTLY CREATED AN INTERAGENCY GROUP INCLUDING THE SECURITIES AND EXCHANGE COMMISSION AND THE COMMODITIES FUTURES TRADING COMMISSION TO MONITOR DERIVATIVES THE BUDGET ALSO NOTES THAT BANK INCOME COULD BE SQUEEZED BY RISING INTEREST RATES AND BY TOUGHER COMPETITION FROM MUTUAL FUNDS SECURITIES FIRMS AND OTHER NONBANK COMPETITORS ASIDE FROM ALLOWING SOUND BANKS TO UNDERWRITE SECURITIES AND INSURANCE THE BUDGET REPEATS THE ADMINISTRATION'S VIEW THAT BANKS SHOULD BE ALLOWED TO OPERATE NATIONWIDE BRANCH SYSTEMS 9402080119 940208 SMITH CORONA BROTHER INDUSTRIES END 14 YEARS OF LITIGATION OVER DUMPING BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE LONGEST AND MOST HEAVILY LITIGATED DUMPING CASES IN US LEGAL HISTORY ABRUPTLY ENDED AS THE TWO RIVALS REALIZED THEY COULD NO LONGER GAIN FROM CONTINUING THE FIGHT IN A JOINT STATEMENT SMITH CORONA CORP AND BROTHER INDUSTRIES LTD OF JAPAN SAID THEY AGREED TO TERMINATE ALL TRADE LITIGATION BETWEEN THEM FILED OVER THE LAST 14 YEARS BOTH OF OUR COMPANIES ARE BETTER SERVED BY CONCENTRATING ON THE MARKETPLACE AND SERVING OUR CUSTOMERS THE COMPANIES SAID THE END OF THE LITIGATION SEEMED INEVITABLE IN THE 20 YEARS THE TWO COMPANIES HAVE CHARGED EACH OTHER WITH DUMPING SELLING PORTABLE TYPEWRITERS AND WORD PROCESSORS BELOW COST IN THE US THEY HAVE GONE THROUGH SUCH DRASTIC TRANSFORMATION THAT THEY SOMETIMES FOUND THEMSELVES IN REVERSED ROLES SMITH CORONA WHICH IS BASED IN NEW CANAAN CONN AND HAS A 113YEAR HISTORY OF MANUFACTURING IN THE US PRODUCES TYPEWRITERS AND WORD PROCESSORS THE COMPANY IS IN THE PROCESS OF SHIFTING THE LAST OF ITS US PRODUCTION IN CORTLAND NY TO MEXICO AFTER MARCH A SPOKESWOMAN SAID SMITH CORONA'S ENTIRE MANUFACTURING BASE WILL BE LOCATED OUTSIDE THE US THIS COULD TAKE AWAY THE LEGAL BASIS FOR SEEKING PROTECTION UNDER US ANTIDUMPING LAWS MEANWHILE IN 1986 BROTHER INDUSTRIES WHICH ALSO MAKES TYPEWRITERS AND WORD PROCESSORS MOVED PRODUCTION FROM ITS PRIMARY FACILITY IN NAGOYA JAPAN TO BARTLETT TENN QUALIFYING IT AS A US MANUFACTURER IN FACT IN AN IRONIC TWIST BROTHER INDUSTRIES IN 1991 BEGAN CLAIMING THAT IT WAS THE COMPANY THAT REPRESENTED THE US DOMESTIC TYPEWRITER INDUSTRY AND NOT SMITH CORONA WHICH IN 1989 BECAME A PUBLIC COMPANY WITH 48 OWNED BY BRITAIN'S HANSON PLC MOREOVER BROTHER SUED SMITH CORONA IN 1991 ALLEGING THAT IT WAS DUMPING ITS SINGAPOREMADE TYPEWRITERS IN THE US INDEED IN 1993 THE US COMMERCE DEPARTMENT APPEARED TO AGREE WITH BROTHER IN A PRELIMINARY DETERMINATION THE DEPARTMENT SAID SMITH CORONA WAS SELLING TYPEWRITERS FROM ITS SINGAPORE PLANT AT LESS THAN FAIR VALUE IN THE US AND IN THE SAME RULING THE COMMERCE DEPARTMENT FOUND THAT BROTHER INDUSTRIES REPRESENTED THE DOMESTIC TYPEWRITER INDUSTRY SAID MARK THOMPSON GENERAL COUNSEL OF BROTHER INDUSTRIES HERE WERE TWO COMPANIES CLAIMING TO BE REPRESENTING THE DOMESTIC INDUSTRY AND EACH HAD FILED ANTIDUMPING CLAIMS AGAINST THE OTHER MR THOMPSON SAYS IT WAS CRAZY WE WERE CHASING OUR TAILS THE TWO PARTIES HAVE BEEN USING LITIGATION TO COMPETE IN THE MARKETPLACE HE SAID AT THE END WE DECIDED TO USE THE MARKETPLACE TO COMPETE THE COMPANIES SAID THAT AS PART OF THE SETTLEMENT THEY WOULD ASK THE COMMERCE DEPARTMENT TO SUSPEND ITS ANTIDUMPING INVESTIGATION OF PORTABLE TYPEWRITERS FROM SINGAPORE AND TO REVOKE ANTIDUMPING DUTIES ON PORTABLE ELECTRIC TYPEWRITERS AND PERSONAL WORD PROCESSORS FROM JAPAN THEY SAID THEY WILL ASK THAT RELATED LITIGATION IN THE US COURT OF INTERNATIONAL TRADE BE DISMISSED AS A RESULT OF THE SETTLEMENT AGREEMENT 9402080118 940208 AMERICAN AIRLINES TRAFFIC FALLS FORT WORTH TEXAS AMERICAN AIRLINES SAID JANUARY TRAFFIC FELL 33 TO 74 BILLION REVENUE PASSENGER MILES FROM 765 BILLION MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AMR CORP UNIT SAID ITS JANUARY LOAD FACTOR THE PERCENTAGE OF SEATS FILLED ROSE TO 59 FROM 571 9402080117 940208 LEISURE & ARTS BOOKSHELF STRUNGOUT PICARESQUE BY RICHARD LOCKE STEPHEN WRIGHT'S GOING NATIVE FARRAR STRAUS & GIROUX 305 PAGES 22 IS A ROAD NOVEL A DIABOLIC PICARESQUE A PILGRIM'S PROGRESS THAT BECOMES A DANCE OF DEATH A VOYAGE TO THE END OF NIGHT AN EXECUTIONER'S SONG IT EXHIBITS AN IMPRESSIVE SARDONIC GRANDILOQUENCE AND A FEROCITY THAT OFTEN APPROACHES THE ANOMIE AND SKITTERING VIOLENCE IT CONDEMNS THE GENRE IS FAMILIAR A SATIRE OF POSTVIETNAM AMERICA A PUMPEDUP PARANOID TOUR OF AN APOCALYPTIC WASTELAND A GROTESQUE CARNIVAL PEOPLED WITH DISAFFECTED SUBURBANITES PSYCHOS FREAKS LOSERS CRACKHEADS PORN STARS SERIAL KILLERS THE DETRITUS OF POSTINDUSTRIAL CAPITALISM POP CULTURE SLEAZE AND SPIRITUAL DESPAIR THE USUAL SUSPECTS BUT MR WRIGHT RENOVATES THESE CULTURAL CLICHES THROUGH HIS EXCEPTIONALLY PRECISE DESCRIPTIONS OF CHARACTERS AND SCENES THROUGH THE PARTICULARIZING DANCE OF HIS LANGUAGE OVER THE GENERALLY FAMILIAR PLOT AND THEME AND THROUGH A DISQUIETING INTERPLAY OF COMPASSION COMPLICITY AND CONDEMNATION HE IS EXPLOITING THE POSSIBILITIES OF THE GENRE RATHER THAN JUST GOING ALONG FOR THE RIDE IN EIGHT CHAPTERS HE TAKES US FROM A LEAFY CHICAGO SUBURB TO A RAINSWEPT INTERSTATE HIGHWAY TO A COLORADO MOTEL TO A LAS VEGAS BRIDAL SHOP TO A CALIFORNIA BEACH HOUSE EACH CHAPTER FEELS LIKE A RICH SHORT STORY A WELLPOPULATED BREATHING WORLD OF ITS OWN BUT HE IS ALSO TRACING THE PATH OF A DISINTEGRATING BLACK HOLE OF A CHARACTER ONE WYLIE JONES A GUY WHO LOOKED LIKE ANY OTHER GUY LIKE A GOLF PRO OR A SHOE SALESMAN AT THE MALL IN A BLUE POLO SHIRT AND KHAKI TROUSERS DRIVING A GREEN 1969 FORD GALAXIE WITH A GLOCK 19 PISTOL UNDER THE FRONT SEAT MR WRIGHT IS AN UNUSUALLY ADROIT NARRATOR IN HIS FINE VIETNAM NOVEL MEDITATIONS IN GREEN 1983 HE HANDLED COMPLEX FRAGMENTED STORIES WITH DOVETAILING MULTIPLE POINTS OF VIEW HE DISPLAYED EQUAL SKILL IN HIS IMPRESSIVE M31 A FAMILY ROMANCE 1988 ABOUT A DISINTEGRATING MIDWEST FAMILY OF UFO FREAKS IN GOING NATIVE HE CONSTRUCTS A SERIES OF NARRATIVE AND PSYCHOLOGICAL MICROSYSTEMS AND SHOOTS HIS PROTAGONIST THROUGH THEM LIKE A DESTABILIZING PARTICLE IN A CLOUD CHAMBER NOT THAT ANY OF THESE SYSTEMS IS PARTICULARLY STABLE BEFORE WYLIE PASSES THROUGH THE NOVEL BEGINS WITH A BACKYARD BARBECUE WYLIE AND HIS WIFE AND ANOTHER COUPLE DAIQUIRIS NACHOS MARITAL SNIPING SEXUAL TENSION ALL THE MATERIAL OF A WRY SUBURBAN SLICE OF LIFE BUT THE SNUG SOLIDITY CHARMED EASE TASTEFUL HARBOR OF THE HOUSE IS JUST A DECORATOR'S TRICK THE CHARCOALS GLOW LIKE POISONOUS PINK EGGS THE TV SPEWS IMAGES OF MURDER CHILD ABUSE RABID DYSFUNCTION AND THE LADY OF THE HOUSE WHOSE HAIR HAS BEEN CRUDELY CHOPPED INTO A STYLE OF BASIC ASYMMETRY IS STARTLED WHEN HER HUSBAND WYLIE LATE AGAIN LOOMS UP LIKE THIS HORRIBLE SHAPE AND SOON WITHOUT A WORD OF WARNING WYLIE GOES INSIDE FOR SOMETHING LOOKS IN ON HIS SLEEPING SON AND SIMPLY DISAPPEARS IN THE SUCCEEDING CHAPTERS HE BECOMES A PERSONIFICATION OF EVILA VACUUM THE ABSENCE OF CONNECTIVE TISSUE THE POWER OF BLANKNESS ONLY THREE BLOCKS AWAY LIVE MR CD AND LATISHA CHARLEMAGNE TWO SPECTACULARLY SORDID CRACKHEADS BOILING AWAY IN A STATE OF MUTUAL ABRASION WYLIE STEALS THEIR GREEN FORD GALAXIE OUT ON THE HIGHWAY A PSYCHOTIC DRIFTER BUMS A RIDE WITH TOMMY A GUY IN A GREEN FORD GALAXIE WHO CALMLY TELLS HIM HE'S JUST OUT OF JAIL FOR MURDER AND IS DRIVING A STOLEN CAR IN COLORADO TOMMY PICKS UP A NERDY MOTEL OWNER'S REBELLIOUS DAUGHTER AND TURNS THE TABLES ON THE VOYEURISTIC PROTEGE OF A DENVER PORN FILM PRODUCER IN LAS VEGAS TOMMY HITCHES UP WITH A ROULETTE DEALER IN A WHITE LEATHER MINISKIRT WHO LOOKS LIKE A ROLLER DERBY QUEEN BUT THE CENTRAL FOCUS OF THIS CONSPICUOUSLY COMPASSIONATE CHAPTER IS THE LIFE AND LOVES OF THE GIRL BEHIND THE COUNTER IN THE BRIDAL SHOPPE OF THE HAPPY CHAPEL THE BOOK'S TOUR DE FORCE IS AN 80PAGE NOVELLA WITHIN THE NOVEL A JOURNEY UP A JUNGLE RIVER IN BORNEO UNDERTAKEN BY A RANDY HOLLYWOOD MAN AND WIFE AN ACTRESS IN SCIFI HORROR FLICKS A SUMPTUOUSLY DESCRIBED EXPEDITION TO THE HEART OF DARKNESS A VILLAGE OF FORMER HEADHUNTERS HALFCORRUPTED BY THE LURE OF OUTBOARD ENGINES AND ATHLETIC SHOES AND TELEVISION SETS BUT STILL ENMESHED IN ANCIENT ANIMISTIC PRACTICES AND A BELIEF IN THE WORLD OF SPIRITS OF BRUTAL HARMONIES OF RITUALIZED AND THEREBY CONTAINED ANXIETIES THE LA COUPLE ARE OF COURSE TRANSFORMED BUT THE CHAPTER KEEPS MOVING TOWARD THE VERY DIFFERENT NATIVE BRUTALITY AND DARKNESS THAT AWAIT THEM BACK HOME WHEN TOMMY AND HIS MATE PAY A CALL THE BOOK ENDS A FEW YEARS LATER WITH SOMEONE WHO APPEARS TO BE WYLIE OR TOMMY BUT IS NOW CALLED WILL COMING APART AT THE SEAMS SITTING IN HIS RICH WIFE'S CALIFORNIA BEACH HOUSE GARAGE IN THE WRECK OF A GREEN GALAXIE WITH A GUN LONGING FOR EVERYTHING TO COME TO A STOP IN PARAPHRASE THE NOVEL MAY SOUND TOO FULL OF FAMILIAR ATTITUDES AND EFFECTS AT TIMES THE BAROQUE RHETORIC CAN TEETER TOWARD A KIND OF SENTIMENTAL APOCALYPTIC BOMBAST QUITE BEYOND THE CONTROLLING IRONY THE STRUNGOUT PICARESQUE IS FUELED TOO OFTEN BY SCENES OF EXULTANT NIHILISM A GLEEFUL JACKEDUP DEVILS' DANCE OF SEX AND DRUGS BUT PAGE BY PAGE GOING NATIVE IS AN IMPRESSIVE LITERARY PERFORMANCE AND MR WRIGHT HAS MORE THAN CONFIRMED THE SENSE THAT HE IS A MOST DISTINGUISHED LITERARY PERFORMER 9402080116 940208 CONSUMER CREDIT ROSE IN DECEMBER FOR SEVENTH MONTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMERS IN DECEMBER EXPANDED THEIR DEBT LOADS FOR THE SEVENTH STRAIGHT MONTH THE FEDERAL RESERVE SAID CONSUMER CREDIT INCREASED AT AN 112 ANNUAL RATE IN THE LAST MONTH OF 1993 RISING 728 BILLION TO 78984 BILLION THE STRONG RISE CAME ON TOP OF A 107 ANNUALRATE INCREASE IN NOVEMBER THE DECEMBER FIGURE WAS 66 HIGHER THAN A YEAR EARLIER THE BUYING BINGE DURING DECEMBER WAS FUELED BY LOW INTEREST RATES WHICH ENTICED CONSUMERS TO BUY EVERYTHING FROM CARS TO FURNITURE TO TRIPS ON CREDIT ECONOMISTS HOWEVER EXPECT CONSUMER SPENDING TO SLOW DOWN IN THE FIRST HALF OF THIS YEAR FOLLOWING A MORE THAN 14 ANNUAL RATE OF INCREASED SPENDING FOR DURABLEGOODS PURCHASES IN THE LAST QUARTER OF 1993 THE LARGEST RISE DURING DECEMBER CAME IN A CATCHALL CATEGORY THAT INCLUDES LOANS FOR MOBILE HOMES SCHOOL TUITION AND VACATIONS THAT ROSE AT A 179 ANNUAL RATE COMPARED WITH A 94 RATE THE MONTH BEFORE GROWTH IN AUTOLOANS OUTSTANDING ROSE AT A 64 PACE IN DECEMBER THAT WAS A BIG SLOWDOWN FROM THE DOUBLEDIGIT GROWTH IN AUTO LOANS IN NOVEMBER AND OCTOBER REVOLVING CREDIT WHICH INCLUDES BANK AND DEPARTMENTSTORE CARDS ROSE AT A 104 ANNUAL RATE IN THE LATEST PERIOD UP FROM A 93 RATE IN NOVEMBER FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9402080115 940208 BLACK & DECKER TO REDEEM DEBT TOWSON MD BLACK & DECKER CORP SAID IT PLANS TO REDEEM APRIL 1 ITS 100 MILLION OF 8 3/8 NOTES OUTSTANDING DUE 1997 THE NOTES WILL BE REDEEMED AT 100 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST BLACK & DECKER MAKES HOME AND COMMERCIAL TOOLS AND PRODUCTS AND SUPPLIES INFORMATION SYSTEMS TO GOVERNMENT AND COMMERCIAL CLIENTS 9402080114 940208 MARKETING & MEDIA ADVERTISING COKE'S 1994 CAMPAIGN CONTINUES LAST YEAR'S SUCCESSFUL STRATEGY BY KEVIN GOLDMAN COCACOLA PLEASED WITH LAST YEAR'S AD BLITZ FEATURING A DIZZYING NUMBER OF DIFFERENT COMMERCIALS IS REPEATING THE STRATEGY THIS YEAR AND AGAIN RELYING HEAVILY ON THE HOLLYWOOD TALENT FIRM CREATIVE ARTISTS AGENCY OF 26 SPOTS FOR COKE CLASSIC CAA PRODUCED 23 INTERPUBLIC GROUP'S MCCANNERICKSON COKE'S AD AGENCY SINCE 1955 HAS AN EVEN SMALLER ROLE THIS YEAR THAN IN 1993 IT PRODUCED ONLY ONE COMMERCIAL LAST YEAR IT PRODUCED TWO WHILE NEWCOMER FALLONMCELLIGOTT A MIDSIZE AGENCY IN MINNEAPOLIS CREATED TWO SPOTS THE FALLON ADS BOTH HUMOROUS FOCUS ON COKE'S DISTINCTIVE CONTOUR BOTTLE THE CAA COMMERCIALS INCLUDE AN ARMY OF TALKING ANTS MARCHING OFF TO POLISH OFF A SPILLED BOTTLE OF COKE TALKING ICE CUBES THAT ARE THRILLED COKE IS ABOUT TO POURED ON THEM INSTEAD OF A PRIVATELABEL COLA AND GOOFY BLACKANDWHITE FOOTAGE TITLED HOW TO ASK FOR A DATE IN WHICH A TEENAGER ASKS A GIRL TO A WEENIE ROAST THERE ARE ALSO TECHNICALLY DAZZLING ADS INCLUDING ONE USING LUSH COLORS THAT DISSOLVE INTO SCENES OF A FARMER TAKING A BREAK FROM HARVESTING HIS CROP TO SWIG A COKE AND DANCE WITH HIS WIFE IT IS REMINISCENT OF OKLAHOMA THE CAMPAIGN WILL BEGIN THIS WEEKEND WITH A CAA COMMERCIAL ON THE NATIONAL BASKETBALL ASSOCIATION'S ALLSTAR GAME ON GENERAL ELECTRIC'S NBC NETWORK A 30SECOND COMPUTERANIMATED SPOT TITLED NBA DANCING CLOTHES FEATURES THE JERSEYS OF SUCH NBA PLAYERS AS PATRICK EWING ROBERT PARISH AND HORACE GRANT COKE WILL BE A MAJOR SPONSOR OF THE WINTER OLYMPICS ON CBS AND TWO NEW CAA COMMERCIALS WILL FEATURE THE POPULAR POLAR BEARS FROM LAST YEAR'S CAMPAIGN ON THE LUGE AND SKI JUMPING LAST YEAR COKE INTRODUCED 15 SPOTS APPEARING 105 TIMES ON 17 BROADCAST AND CABLE OUTLETS IN ONE WEEK THIS YEAR'S BLITZ WILL BE VERY SIMILAR SAYS CHARLES FRUIT COKE'S VICE PRESIDENT DIRECTOR OF MEDIA ALTHOUGH HE DECLINES TO BE SPECIFIC COKE'S CHALLENGE WITH ITS SECOND CAMPAIGN FROM CAA IS QUITE DIFFERENT FROM LAST YEAR'S IN 1993 IT NEEDED TO REVITALIZE ITS ADVERTISING AND OVERCOME THE PERCEPTION THAT THE HIP SOFT DRINK FOR THE YOUTH MARKET IS PEPSI THIS YEAR COKE NEEDS TO CONTINUE THE MOMENTUM CREATED BY THE 1993 COMMERCIALS WHICH WERE CONSIDERED FRESH AND VIBRANT THE NEW CAMPAIGN IN WHICH LAST YEAR'S ONEWORD SLOGAN ALWAYS AND CATCHY JINGLE THERE'S ALWAYS COCACOLA ARE USED FREQUENTLY IS THE FIRST FROM SERGIO ZYMAN SINCE HIS RETURN TO COKE AS SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER LAST AUGUST MR ZYMAN WHO EARNED THE NICKNAME AYACOLA FOR HIS REPUTATION FOR BEING SOMETIMES OVERLY AGGRESSIVE HAD SOME CHOICE WORDS FOR HIS MAIN RIVAL ASKED DURING A NEWS CONFERENCE FOR HIS OPINION OF A PEPSI AD SHOWING A CHIMP DRINKING COKE MR ZYMAN CALLED THE COMMERCIAL DATED THE SAME OLD THING PEPSI HE SAID IS FIXATED ON COKE'S REAR FENDER WE DON'T NEED TO DO COMPARATIVE ADVERTISING A PEPSI SPOKESWOMAN SAYS LET THE GAMES BEGIN WE MUST BE DOING SOMETHING RIGHT WE DID SOME POST SUPER BOWL GAME POLLING OF CONSUMERS AND PEPSI WAS THE MOST RECALLED BRAND AND THEIR FAVORITE OVERALL ADVERTISING DURING THE SUPER BOWL WAS THE CHIMP SPOT COKE'S MR ZYMAN SAYS IT HAS BEEN DECADES SINCE WE HAVE BEEN THIS PLEASED WITH OUR ADVERTISING THE ALWAYS CAMPAIGN MOVED THE SALES NEEDLE HE SAYS BUT HE DECLINES TO BE SPECIFIC THE SOFT DRINK CATEGORY HAS BEEN SLUGGISH LATELY WITH CONSUMERS GRAVITATING TO ALTERNATIVE BEVERAGES SUCH AS ICED TEA AND SOCALLED NEW AGE DRINKS INCLUDING FRUITFLAVORED CARBONATED WATER BUT LAST YEAR COKE CLASSIC'S SHARE OF THE MARKET ACTUALLY GREW ALBEIT MARGINALLY TO 201 FROM 20 A YEAR EARLIER ACCORDING TO BEVERAGE DIGEST A NEWSLETTER IN OLD GREENWICH CONN IN COMPARISON NO 2 PEPSI FELL TO 177 FROM 18 AND DIET COKE AT NO 3 FELL TO 89 FROM 91 WITH THE NEW ADS MANY OF WHICH WILL BE SEEN WORLDWIDE COKE IS TARGETING SOME CONSUMERS IT HERETOFORE IGNORED FOR INSTANCE ONE SPOT IS AIMED AT PEOPLE WHO DRINK THE CAFFEINELADEN PRODUCT AFTER MIDNIGHT AND MAY FIND IT AS DIFFICULT TO GET TO SLEEP AS THOSE WHO IMBIBE COFFEE AFTER DINNER THE COMMERCIAL IS IN FRENCH ALTHOUGH AN ENGLISHLANGUAGE VERSION WILL SUBSEQUENTLY AIR IN THE US AND FEATURES LOTS OF LEATHER AFTERHOUR CLUBS AND MOTORCYCLES ANOTHER COMMERCIAL THAT EASILY FITS INTO LATENIGHT PROGRAMMING IS EYECATCHING AND APPROPRIATELY TITLED HYPNOSIS THE AMUSING SPOT SHOWS A SWINGING COKE LOGO IN FRONT OF VIDEO MONITORS AND A PAIR OF EYES THE MONOTONE VOICEOVER REPEATS THE ORDER GO TO THE STORE AND GET LOTS OF COCACOLA DISREGARD ALL OTHER SOFT DRINK ADVERTISING MISSING FROM THIS YEAR'S ROSTER OF SPOTS ARE BIGNAME CAA CLIENTS WHO DIRECTED SOME OF LAST YEAR'S ADS FOR INSTANCE RICHARD DONNER LETHAL WEAPON AND ROB REINER WHEN HARRY MET SALLY AND A FEW GOOD MEN WERE AMONG DIRECTORS TO PARTICIPATE IN LAST YEAR'S COKE CAMPAIGN THIS YEAR'S CROP OF DIRECTORS INCLUDES JOHN SINGLETON BOYZ N' THE HOOD AND JOAN GRATZ WHO WON AN ACADEMY AWARD FOR THE ANIMATED SHORTSUBJECT FILM MONA LISA DESCENDING A STAIRCASE THE ENTIRE ALWAYS CAMPAIGN IS INTRUSIVE SAYS JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST WHO PREVIEWED THE ADS YESTERDAY THAT'S GOOD HE SAYS IT MAKES YOU STOP AND LOOK AT THEM IN WHAT HAS TO BE ENCOURAGING NEWS TO FALLONMCELLIGOTT ITS ADS RECEIVED THE LOUDEST LAUGHTER AT A COKE NEWS CONFERENCE IN MANHATTAN ITS ADS DON'T USE QUICK EDITS AND DON'T HAVE A WISEGUY ATTITUDE INSTEAD THEY HAVE THE DRY MIDWEST SENSIBILITY THAT FALLON IS KNOWN FOR IN ONE AD A ROUND BANANA A SQUARE EGG AND GREEN PEAS IN A RECTANGULAR CASE ARE USED TO ILLUSTRATE HOW CERTAIN PRODUCTS CAN COME ONLY IN CERTAIN PACKAGES JUST LIKE COKE IN ITS TRADEMARK BOTTLE THE SOLE MCCANN SPOT ISN'T VERY DISTINCTIVE IT SHOWS A PAIR OF HANDS SHUFFLING A DECK OF CARDS REVEALING IMAGES OF A COKE BOTTLE BEING POURED INTO A GLASS MR ZYMAN SAYS ANOTHER AGENCY WIEDEN & KENNEDY IN PORTLAND ORE WHICH HANDLES NIKE ADS IS ON BOARD TO WORK ON NEW PROJECTS FOR ME HE WOULDN'T ELABORATE ALTHOUGH INDUSTRY SPECULATION IS THAT COCACOLA PLANS TO INTRODUCE SUCH NEW PRODUCTS AS A BEVERAGE WITH A CALORIE COUNT BETWEEN DIET COKE AND COKE CLASSIC NOT ONLY HAS MCCANN'S ROLE IN CREATING DOMESTIC ADVERTISING FOR COKE DIMINISHED BUT THE AGENCY'S INTERNATIONAL TURF ALSO IS UNDER SIEGE FROM ANOTHER BIG GLOBAL NETWORK CLOSELY HELD D'ARCY MASIUS BENTON & BOWLES DMB&B HAS WON TWO NEW ASSIGNMENTS FROM THE BIG CLIENT ONE DOMESTIC AND ONE OVERSEAS ACCORDING TO INDUSTRY EXECUTIVES THE WIN FOLLOWS DMB&B'S MOVE LAST MONTH TO REORGANIZE ITS SPANISHLANGUAGE UNITS INTO AN INTERNATIONAL NETWORK CALLED DMB&B AMERICAS DMB&B OFFICIALS COULDN'T BE REACHED COKE DECLINED TO COMMENT ACCOUNTS PACTEL CORP THE WALNUT GROVE CALIF CELLULAR PHONE AND PAGING SERVICE COMPANY TAPPED CHIAT/DAY OF VENICE CALIF TO CREATE CORPORATE ADVERTISING TO SUPPORT ITS PLANNED SPINOFF FROM PARENT PACIFIC TELESIS GROUP ESTIMATED BILLINGS ON THE NEW ACCOUNT ARE 15 MILLION CANANDAIGUA WINE CO CANANDAIGUA NY TAPPED TRONE ADVERTISING GREENSBORO NC TO CREATE ADS FOR PAUL MASSON WINES BILLINGS WEREN'T DISCLOSED WHITTLE AC NIELSEN WILL START MEASURING THE AUDIENCE FOR WHITTLE COMMUNICATIONS' SPECIAL REPORT NETWORK WHICH BRINGS PROGRAMMING AND ADS TO PATIENTS IN THE WAITING ROOMS OF FAMILY PHYSICIANS NIELSEN EMPLOYEES WILL VISIT DOCTORS' OFFICES TO COUNT PATIENTS AND SEE WHETHER TELEVISION SETS ARE TURNED ON AND PUBLICATIONS ARE AVAILABLE NBC ON LINE GENERAL ELECTRIC'S NBC NETWORK SAID IT PLANS TO LAUNCH ITS OWN INTERACTIVE ONLINE SERVICE THIS SPRING ON THE PRODIGY AND AMERICA ONLINE COMPUTER NETWORKS THE ELECTRONIC SERVICE FIRST REPORTED IN ADVERTISING AGE ALSO WILL CARRY MERCHANDISE FROM THE NBC STORE SAID ALAN COHEN SENIOR VICE PRESIDENT OF MARKETING PRODIGY IS A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO AC&R AD AGENCY AC&R ADVERTISING PREVAILED IN A 1991 AGEDISCRIMINATION SUIT FILED IN FEDERAL COURT IN LOS ANGELES BY PATRICK KING A FORMER WEST COAST EXECUTIVE AT THE AGENCY WHO HAD CHARGED HE EFFECTIVELY WAS DISMISSED BECAUSE HE WAS OVER 50 STILL PENDING AGAINST THE SAATCHI & SAATCHI UNIT ARE THREE OTHER AGEDISCRIMINATION SUITS MR KING AND HIS ATTORNEYS COULDN'T BE REACHED 9402080112 940208 ALASKA AIR TRAFFIC RISES SEATTLE ALASKA AIR GROUP INC REPORTED HIGHER TRAFFIC FOR ITS UNITS ALASKA AIRLINES AND HORIZON AIR IN JANUARY ALASKA AIRLINES' REVENUE PASSENGER MILES INCREASED 40 TO 4881 MILLION FROM 3487 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED WAS 564 COMPARED WITH 477 A YEAR EARLIER HORIZON AIR FLEW 444 MILLION REVENUE PASSENGER MILES IN JANUARY UP 15 FROM 385 MILLION FLOWN DURING THE PERIOD LAST YEAR LOAD FACTOR ROSE TO 56 FROM 525 A YEAR EARLIER 9402080111 940208 COMMODITIES PRECIOUSMETALS PRICES TUMBLE IN HEAVY SELLING AS FUNDS CONTINUE TO REACT TO FED'S TIGHTENING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES TUMBLED ON ANTIINFLATIONARY SENTIMENT LEFT OVER FROM THE FEDERAL RESERVE'S TIGHTENING OF SHORTTERM INTEREST RATES LAST WEEK AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY FELL 760 TO 38070 AN OUNCE WHILE THE MARCH SILVER FUTURES CONTRACT WAS DOWN 187 CENTS TO 524 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE THE PRICE OF THE ACTIVELY TRADED APRIL PLATINUM FUTURES CONTRACT DECLINED 610 TO 39140 AN OUNCE THIS WAS A CONTINUATION OF LAST FRIDAY'S NEWS SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDIT SUISSE THE FED'S RAISING OF INTEREST RATES IS BEING INTERPRETED AS A WARNING SHOT ACROSS THE BOWS OF ANYBODY EXPECTING INFLATION TO RETURN BECAUSE OF THE TIGHTENING COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AGGRESSIVELY LIQUIDATED THEIR LONG POSITIONS IN PRECIOUSMETALS FUTURES CONTRACTS OR WAGERS THAT PRICES WOULD INCREASE ANALYSTS SAID THE HEAVY SELLING BY THESE INFLUENTIAL INVESTORS HELPED TO PUSH PRICES LOWER THROUGHOUT THE TRADING DAY ALSO PRESSURING THE MARKET LOWER WAS STRONG OVERNIGHT SELLING IN FAR EAST METALS MARKETS BY MIDDLE EASTERN INVESTOR SYNDICATES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH BUYING BY THESE SYNDICATES HAS HELPED TO SUPPORT METALS PRICES FOR MONTHS BUT AS THEIR DEMAND FOR METALS WANES PRICES TEND TO TRICKLE LOWER AS WELL ALTHOUGH MOST ANALYSTS STILL EXPECT GOLD AND OTHER PRECIOUSMETALS PRICES TO RISE OVER THE LONG TERM THE PRICES ARE HAVING TROUBLE BREAKING OUT OF THEIR LONGSTANDING TRADING RANGE OF 380 TO 390 AN OUNCE THE GOLD PRICE LEVEL OF 400 AN OUNCE HAS PROVEN TO BE A TREMENDOUS PSYCHOLOGICAL BARRIER BECAUSE EACH TIME THE METAL NEARS THAT LEVEL MAJOR INDUSTRIAL USERS SUCH AS THE JEWELRY INDUSTRY STOP BUYING MR MACDONALD SAID CONVERSELY ANALYSTS EXPECT THE CURRENT DOWNDRAFT OF GOLDFUTURES PRICES TO STOP WHEN AND IF THE METAL REACHES 375 AN OUNCE BECAUSE AT THAT LEVEL INDUSTRIAL USERS HAVE TENDED TO COME BACK TO THE MARKET AS BUYERS IN OTHER COMMODITY MARKETS YESTERDAY COTTON FUTURES PRICES PLUNGED ON NERVOUSNESS ABOUT THE PERFORMANCE OF THE US STOCK MARKET AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY FELL 163 CENTS TO 7560 CENTS A POUND FRIDAY'S 96POINT DECLINE IN THE DOW JONES INDUSTRIAL AVERAGE TOUCHED OFF A HEAVIER THAN NORMAL ROUND OF PROFITTAKING SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON THE CORRELATION BETWEEN STOCK PRICES AND COTTON PRICES IS OFTEN QUITE STRONG MS KAUL SAID BECAUSE THE TEXTILE INDUSTRY IS SO RELIANT ON THE GENERAL BUSINESS MOOD HERE IN THE US SHE NEVERTHELESS BELIEVES THAT SUPPLYANDDEMAND FUNDAMENTALS FOR COTTON REMAIN STRONG FOR INSTANCE MANY IN THE INDUSTRY NOW EXPECT US EXPORTS TO RISE TO AS MUCH AS SEVEN MILLION BALES FROM CURRENT PROJECTIONS OF 62 MILLION BALES BECAUSE OF GLOBAL SHORTAGES OF HIGHQUALITY COTTON ENERGY OIL FUTURES PRICES SETTLED LOWER AS A BREAK IN PROLONGED COLD WEATHER IN THE US NORTHEAST TRIGGERED A DECLINE IN HEATINGOIL PRICES OVER THE PAST TWO WEEKS THE AMERICAN PETROLEUM INSTITUTE HAD REPORTED STEEP DROPS IN DISTILLATE STOCKS COMPRISING HEATING OIL AND DIESEL FUEL CAUSING HEATINGOIL PRICES TO SPIKE BUT AS TEMPERATURES MODERATED ACROSS MUCH OF THE US INCLUDING THE NORTHEAST THE WORLD'S LARGEST HEATINGOIL MARKET PRICES HAVE SLIPPED MARCH HEATINGOIL FUTURES DECLINED BY 36 CENTS A GALLON OVER THE PAST THREE SESSIONS AND THE DECLINE IN PRODUCT PRICES HAS CAUSED CRUDEOIL PRICES TO FALL AS WELL HEATING OIL TOOK US UP AND HEATING OIL IS TAKING US DOWN ONE TRADER SAID ADDING THAT MARKET FUNDAMENTALS APART FROM THE WEATHER LOOK WEAK CRUDE OIL FOR MARCH DELIVERY FELL BY 38 CENTS A BARREL TO 1525 A BARREL AFTER TRADING IN A RANGE OF 1515 TO 1563 9402080110 940208 MICHAEL BAKER UNIT'S NAVY JOB PITTSBURGH MICHAEL BAKER CORP SAID ITS INTELCOM SUPPORT SERVICES INC UNIT WON A 13 MILLION CONTRACT TO OPERATE AND MAINTAIN THE NAVY'S RADIO TRANSMITTING FACILITIES IN LUALUALEI HAWAII AND BARRIGADA GUAM THE COMPANY SAID THE CONTRACT IS FOR NINE MONTHS WITH FOUR OPTION YEARS INTELCOM WILL BE RESPONSIBLE FOR OPERATION AND MAINTENANCE OF HIGHPOWERED HIGHFREQUENCY TRANSMITTERS AT BOTH FACILITIES MICHAEL BAKER SAID 9402080109 940208 KELLOGG BOOSTS PRICES ON MANY CEREALS AVERAGE 26 RISE MAY MEET RESISTANCE BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL KELLOGG CO THE NATION'S LARGEST MAKER OF READYTOEAT CEREAL IS RAISING PRICES ON MANY OF ITS POPULAR BRANDS FOR THE SECOND TIME IN SIX MONTHS KELLOGG NOTIFIED GROCERS BY LETTER YESTERDAY THAT IT IS RAISING PRICES ON 38 CEREALS AN AVERAGE OF 26 CORN FLAKES AMONG ITS BIGGEST SELLERS WILL INCREASE NEARLY 7 FROSTED MINIWHEATS WILL GO UP 4 RICE KRISPIES AND FROSTED FLAKES ABOUT 3 EACH AND FROOT LOOPS 25 NOT ALL OF KELLOGG'S CEREALS ARE AFFECTED THE MOVE IS SURPRISING IN THAT IT RUNS COUNTER TO RECENT PRICE ROLLBACKS BY SOME NATIONALBRAND MANUFACTURERS INCLUDING THOSE OF CIGARETTES AND DISPOSABLE DIAPERS IN THE FACE OF STRONG PRIVATELABEL COMPETITION MOREOVER WHILE CEREAL MAKERS FOR YEARS RAISED PRICES FASTER THAN THE INFLATION RATE WITHOUT HURTING SALES LATELY SOME INCLUDING KELLOGG HAVE SEEN THEIR DOMESTIC MARKET SHARE DECLINE WHILE IT IS THE MARKET LEADER KELLOGG MAY ENCOUNTER COMPETITIVE RESISTANCE THE LAST TIME KELLOGG RAISED PRICES AN AVERAGE OF 21 LAST AUGUST ONLY THE POST CEREALS DIVISION OF PHILIP MORRIS COS' KRAFT GENERAL FOODS FOLLOWED SUIT PREVIOUSLY A PRICE INCREASE BY ONE CEREAL MAKER WAS SOON TAKEN BY EVERYONE BUT AS SOME BRANDS APPROACH 5 A BOX COMPANIES HAVE WORRIED ABOUT CONSUMER STICKER SHOCK AS WELL AS THE QUESTIONABLE ECONOMICS OF OFFERING DISCOUNT COUPONS THAT CONSUMERS CAN USE TO CANCEL OUT PRICE INCREASES NEARLY HALF THE CEREAL PURCHASES IN THE US ARE MADE WITH COUPONS AND INSTORE DEALS ARE COMMON A KELLOGG SPOKESMAN SAID YESTERDAY THE COMPANY DOESN'T INTEND TO OFFER MORE COUPONS TO OFFSET THE HIGHER PRICES ALTHOUGH HE ADDED THAT WE HAVE THE WILL TO PROTECT OUR MARKET SHARE ONLY LAST MONTH THE BATTLE CREEK MICH COMPANY'S CHAIRMAN NOTING THAT FOURTHQUARTER ADVERTISING AND PROMOTIONAL EXPENDITURES WERE 100 MILLION HIGHER THAN IN THE 1992 QUARTER SAID KELLOGG HOPED TO MODERATE PROMOTIONAL SPENDING IN THE US GENERAL MILLS INC THE NATION'S NO 2 CEREAL COMPANY WITH ABOUT 25 OF THE MARKET COMPARED WITH KELLOGG'S 37 AS MEASURED BY VOLUME DECIDED NOT TO FOLLOW LAST SUMMER'S KELLOGG INCREASE CONTENDING THAT THE SUBSEQUENT COUPON DISTRIBUTION NEEDED TO KEEP CUSTOMERS COULD HAVE COST MORE THAN THE COMPANY WOULD HAVE REALIZED FROM THE HIGHER PRICE GENERAL MILLS HAD NO IMMEDIATE COMMENT ON KELLOGG'S DECISION SUCH PRICE INCREASES ALSO CREATE A MARKETING OPPORTUNITY FOR PRIVATELABEL OR HOUSEBRAND CEREALS WHICH CAN FOCUS ON THE WIDENING GAP BETWEEN THEIR PRODUCTS AND THOSE OF THE NATIONAL BRANDS TODAY PRIVATELABEL CEREALS HAVE ABOUT A 9 SHARE OF THE US MARKET KELLOGG ATTRIBUTED ITS PRICING MOVE TO VARIETY OF COST FACTORS INCLUDING HIGHER PRICES FOR SUCH RAW MATERIALS AS WHEAT CORN AND RICE THE COMPANY'S MARGINS ALSO HAVE COME UNDER PRESSURE AS IT SPENT AGGRESSIVELY TO MAINTAIN OR INCREASE ITS MARKET SHARE COSTS HAVE INCREASED PARTICULARLY GRAIN WHICH MAY MAKE COMPETITORS FOLLOW THIS INCREASE PRUDENTIAL SECURITIES FOOD ANALYST JOHN M MCMILLIN ADVISED CLIENTS YESTERDAY BUT IN AN INTERVIEW HE SAID WHILE THERE HAVE BEEN SOME INGREDIENT COST INCREASES I'D HAVE RATHER SEEN SOME MARKETING RATIONALIZATION RATHER THAN MORE LIST PRICE INCREASES IN REPORTING RECORD 1993 EARNINGS KELLOGG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARNOLD G LANGBO CITED EXTREMELY COMPETITIVE CONDITIONS IN THE US AND A HIGH LEVEL OF MARKETING ACTIVITY INTERNATIONALLY FOR THE HIGHER LEVEL OF PROMOTION EXPENDITURES INDEED IN RECENT MONTHS KELLOGG HAS SEEN SOME EROSION IN ITS OVERSEAS CEREAL MARKET SHARE AS CEREAL PARTNERS WORLDWIDE A JOINT VENTURE BETWEEN GENERAL MILLS AND NESTLE SA HAS MOVED INTO THE MEXICAN AND ASIAN MARKETS A SPOKESMAN SAID HE KNEW OF NO RECENT PRICE INCREASES BY KELLOGG OUTSIDE THE US IF ITS LATEST DOMESTIC PRICE INCREASE ISN'T FOLLOWED BY COMPETITORS KELLOGG MAY HAVE NO CHOICE BUT TO STEP UP MARKETING EXPENDITURES TO HOLD ITS SHARE BUT THE COMPANY IS CALCULATING THAT THAT WON'T BE NECESSARY OUR INTENT IS THAT PROMOTIONAL SPENDING WILL BE DOWN ON EXISTING PRODUCTS THE SPOKESMAN SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KELLOGG STOCK FELL 25 CENTS OR 05 TO CLOSE AT 5225 A SHARE 9402080108 940208 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY 4 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ASHLAND CITY KY WILL REDEEM ON MARCH 1 1994 3800000 PRINCIPAL AMOUNT OF ITS 580 ENVIRONMENTAL IMPROVEMENT REVENUE BONDS 1978 SERIES DUE MARCH 1 2003 NATIONAL CITY BANK KENTUCKY CLEVELAND IS TRUSTEE ILLINOIS ENVIRONMENTAL FACILITIES FINANCING AUTHORITY WILL REDEEM ON MARCH 11 1994 THE FOLLOWING POLLUTION CONTROL REVENUE BONDS ITS 8 3/8 BONDS SERIES 1979 DUE NOVEMBER 1 2004 AND ITS 8 1/2 BONDS SERIES 1979 DUE NOVEMBER 1 2009 THE AUTHORITY WILL ALSO REDEEM ON APRIL 1 1994 ITS 9 3/4 POLLUTION CONTROL REVENUE BONDS SERIES 1983 DUE APRIL 1 2013 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE 9402080107 940208 WHO'S NEWS NUKOTE HOLDING INC NUKOTE HOLDING INC DALLAS DAVID F BRIGANTE CHIEF EXECUTIVE OFFICER OF THIS MAKER OF PRINTING PRODUCTS WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR BRIGANTE 41 YEARS OLD SUCCEEDS HUBBARD C HOWE 65 WHO WAS NAMED VICE CHAIRMAN THE COMPANY ALSO NAMED JOHN P ROCHON A DIRECTOR INCREASING THE SIZE OF THE BOARD TO EIGHT MEMBERS MR ROCHON 42 IS CHIEF EXECUTIVE OF MARY KAY CORP 9402080106 940208 WORLD STOCK MARKETS GLOBAL MARKETS POST SHARP DECLINES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE INVESTMENT WORLD DEMONSTRATED AGAIN HOW INTERCONNECTED IT IS AS STOCK MARKETS FROM MANILA TO MADRID TUMBLED AS MUCH AS 7 FOLLOWING FRIDAY'S 24 DECLINE ON WALL STREET NONETHELESS MONEY MANAGERS AND EQUITY STRATEGISTS REMAIN BASICALLY OPTIMISTIC INVESTORS SLIGHTLY OVERREACTED TO SOMETHING THAT HAD BEEN WELLFORECAST WELLTHOUGHT ABOUT AND SHOULD HAVE BEEN WELLDISCOUNTED SAID ANDREW GARTHWAITE A GLOBAL STRATEGIST AT SG WARBURG & CO IN LONDON ALL WE'RE TALKING ABOUT HERE IS A TRADING DECLINE IN THE MARKET NOT A FUNDAMENTAL SHIFT IN VIEW THE MULTIMARKET DROPS REPRESENT MORE OF A CORRECTION THAN A COLLAPSE SAID FRANCIS WONG A FUND MANAGER AT PRUDENTIAL ASIA FUND MANAGEMENT LTD IN HONG KONG IF SO IT WAS A HARDSMACK KIND OF CORRECTION PARTICULARLY IN ASIA'S SMALLER STOCK MARKETS EUROPEAN STOCK MARKETS STARTED OFF ON A SIMILARLY DISMAL NOTE BUT RECOVERED FROM THEIR LOWS AFTER INVESTORS SAW THAT US SHARE PRICES IN NEW YORK WERE REBOUNDING BASED ON THE DOW JONES INDEX THE BRITISH STOCK MARKET FELL 13 GERMANY 24 AND FRANCE 17 MEANWHILE SWITZERLAND SPAIN THE NETHERLANDS SWEDEN AND NORWAY WERE OFF BETWEEN 2 AND 28 ITALY FELL 13 AT ONE POINT GERMAN SHARES WERE OFF AS MUCH AS 34 AND BRITISH AS MUCH AS 29 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11583 DOWN 081 REFLECTING THE LOWER ASIA/PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10797 UP 373 OR 36 WITH CYPRUS AMAX MINERALS OF THE US POSTING A 95 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 21528 DOWN 1196 OR 53 WITH ASIATIC DEVELOPMENT OF MALAYSIA SLIDING 9 IN LOCAL CURRENCY EVEN BEFORE THE FEDERAL RESERVE'S MODEST INTERESTRATE INCREASE ON FRIDAY AND SUBSEQUENT US STOCKMARKET SELLOFF MARKETS IN ASIA AND EUROPE WERE FRAGILE AFTER SOARING LAST YEAR ON FAST ECONOMIC GROWTH IN ASIA AND IN EUROPE ON FALLING INTEREST RATES AND VERY OPTIMISTIC CORPORATEEARNINGS FORECASTS STOCKS WERE TRADING AT VALUATIONS THAT STOOD WELL ABOVE HISTORIC NORMS IN EARLY JANUARY STOCK MARKETS IN HONG KONG SINGAPORE MALAYSIA THAILAND THE PHILIPPINES AND INDONESIA CLIMBED TO RECORDS ONLY TO SUFFER SEVERE SETBACKS LATE IN THE MONTH LAST WEEK THOSE IN BRITAIN FRANCE SWITZERLAND ITALY HOLLAND SPAIN SWEDEN AND DENMARK ALSO ROSE TO HIGHS BUT NOT WITH MUCH VIGOR ON THURSDAY THEY FELL AFTER GERMANY'S CENTRAL BANK FAILED TO LOWER INTEREST RATES AS MANY INVESTORS HAD EXPECTED SOME ANALYSTS STILL WORRY THAT THE DOLLAR COULD RISE TO LEVELS THAT WOULD MAKE THE BUNDESBANK RELUCTANT TO CUT INTEREST RATES FOR FEAR OF REIGNITING INFLATION THAT'S BECAUSE MANY BASIC MATERIALS SUCH AS OIL ARE PRICED IN DOLLARS THAT IS A RISK FOR STOCK MARKETS IN GERMANY AND FRANCE IN PARTICULAR SAID MARCUS GRUBB AN INTERNATIONAL EQUITY STRATEGIST AT SALOMON BROTHERS INTERNATIONAL IN LONDON ANOTHER RISK IS THAT INSTEAD OF JUST REASSURING FINANCIAL MARKETS OF ITS ANTIINFLATION CREDENTIALS THE FED COULD BE SIGNALING A SHARP RISE IN INFLATION IN THE US WHICH COULD DELAY FURTHER FALLS IN GLOBAL INTEREST RATES SAID MR GRUBB IT COULD ALSO CHOKE OFF THE ESTIMATED 1 BILLION TO 2 BILLION A MONTH OF US MUTUALFUND INVESTMENT GOING INTO EUROPEAN STOCKS MUCH OF THAT MONEY HAS ALSO BEEN INVESTED IN FASTGROWING ASIAN ECONOMIES WHERE THE MONETARY POLICIES OF SEVERAL COUNTRIES ARE EITHER DIRECTLY OR INDIRECTLY TIED TO THAT OF THE US PEOPLE OUT HERE WILL LOOK TO WALL STREET FOR DIRECTION SAID RICHARD COHEN AN EQUITY SALESMAN AT BARING SECURITIES LTD IN SINGAPORE EVEN WITHOUT DIRECT FINANCIAL OR POLICY LINKS YOU CAN GET CONTAGIONMARKETS REACTING TO EACH OTHER FOR REASONS OTHER THAN THE FUNDAMENTALS SAID SUSHIL WADHWANI DIRECTOR OF BRITISH AND EUROPEAN EQUITY STRATEGY AT GOLDMAN SACHS INTERNATIONAL IN LONDON EVEN IF INDIVIDUAL INVESTORS DO NOT SELL EQUITIES WHEN INTEREST RATES START TO RISE SHARE PRICES MAY NEVERTHELESS FALL BECAUSE OTHER INVESTORS MISTAKENLY BELIEVE THAT INDIVIDUAL INVESTORS WERE ABOUT TO SELL HE WARNED THE DANGER WITH THAT KIND OF SELLING IS THAT IF IT GETS OUT OF HAND IT CAN BECOME SELFJUSTIFYING BUT DISMISSING SUCH A RISK AS UNLIKELY HE SAID HE VIEWED THE SELLOFF AS A BUYING OPPORTUNITY SIMILARLY MR GRUBB CALLED THE STOCK DECLINES A VERY IRRATIONAL REACTION IN THE MARKETS HE NOTED THAT ECONOMIC GROWTH ESPECIALLY IN CONTINENTAL EUROPE WAS MUCH SLOWER THAN IN THE US AND PREDICTED THAT INTEREST RATES IN EUROPE INCLUDING GERMANY WERE HEADED LOWER IN ADDITION MR GRUBB NOTED THAT EVEN WITH THE FED'S TIGHTENING BANKDEPOSIT RATES IN THE US ARE STILL VERY LOW SO MUTUALFUND CASH FLOWS ARE GOING TO CONTINUE TO BE STRONG EVEN IF THEY ARE REDUCED OVER THE COURSE OF THE YEAR HE SAID PESSIMISTIC ABOUT THE PROSPECTS FOR GERMAN STOCKS ALONG WITH MANY OTHER STRATEGISTS MR GRUBB SAID HE WAS DRAWN TO EUROPEAN STOCK MARKETS WHERE AUTHORITIES ARE LIKELY TO EASE WITHOUT WAITING FOR THE BUNDESBANK AND THAT WILL ALSO BENEFIT FROM THE DOLLAR RALLY THE UNITED KINGDOM SWITZERLAND SWEDEN AND SPAIN MEANWHILE GOLDMAN SACHS IS TELLING CLIENTS THAT EUROPE AND JAPAN SHOULD SUFFER LEAST IN ALL THIS SAID MR WADHWANI NEXT IN THE PECKING ORDER SHOULD BE THE US AND LATIN AMERICA HE SAID THE WORLD'S MOST VULNERABLE STOCK MARKETS WERE THOSE IN ASIA EXCEPT FOR JAPAN ESSENTIALLY BECAUSE THEIR INTEREST RATES ARE LINKED DIRECTLY TO THE US ONE OF MR GARTHWAITE'S FAVORITE STOCK MARKETS IS BRITAIN WHICH SELLING AT 163 TIMES ESTIMATED 1994 EARNINGS IS AMONG EUROPE'S CHEAPEST THAT PUTS THE EARNINGS YIELD ABOVE THE 10YEAR BOND YIELD WHICH IS USUALLY A GOOD SIGN OF VALUE SAID THE SG WARBURG STRATEGIST HE ADDED THAT APART FROM BELGIUM THE BRITISH STOCK MARKET HAS THE HIGHEST DIVIDEND YIELD AMONG 27 WORLD STOCK MARKETS ANALYZED BY HIS FIRM STILL MR GARTHWAITE SAID I'VE GOT TO BE CAUTIOUS WHEN MARKETS SELL OFF SO QUICKLY ON SOMETHING THAT WAS SO WELLKNOWN ABOUT HE EXPLAINS IT SHOWS THAT EQUITIES ARE INCREASINGLY VULNERABLE LONDON'S FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 563 POINTS OR 16 TO 34191 THE FT 30STOCK INDEX LOST 359 POINTS OR 134 TO 26339 VOLUME WAS 8943 MILLION SHARES COMPARED WITH 7851 MILLION SHARES FRIDAY 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 9402080105 940208 OHSL TO BUY BACK 5 OF ITS STOCK CINCINNATI OHSL FINANCIAL CORP SAID IT PLANS TO BUY BACK ABOUT 5 OF ITS COMMON SHARES OUTSTANDING IN THE OPEN MARKET OVER THE NEXT SIX MONTHS BEGINNING ON OR AFTER WEDNESDAY THE COMPANY SAID IT CURRENTLY HAS 1356600 COMMON SHARES OUTSTANDING THE THRIFT HOLDING COMPANY SAID THE SHARES WILL BE PURCHASED AT PREVAILING MARKET PRICES FROM TIME TO TIME OHSL SAID THE REPURCHASED SHARES WILL BE HELD AS TREASURY SHARES AND WILL BE AVAILABLE FOR GENERAL CORPORATE PURPOSES AS OF DEC 31 THE COMPANY HAD ASSETS OF 1693 MILLION 9402080104 940208 MANAGEMENT STOCK OPTIONS ARE RISKY WAY OF GETTING PAID BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL JOHN SCULLEY ISN'T ALONE WHEN MR SCULLEY FORMER CHAIRMAN OF APPLE COMPUTER INC JOINED SPECTRUM INFORMATION TECHNOLOGIES INC LAST OCTOBER HE WAS OFFERED A MILLIONDOLLAR SALARY AND OPTIONS TO BUY 18 MILLION SHARES OF ITS STOCK OVER FIVE YEARS FULLY EXERCISED THEY WOULD HAVE GIVEN HIM ROUGHLY 25 OF THE BUSINESS BUT WHEN HE ANNOUNCED HIS RESIGNATION YESTERDAY MR SCULLEY HADN'T EXERCISED ANY OF HIS OPTIONS AND HADN'T EARNED A CENT FROM HIS HUGE STOCKOPTION PACKAGE LIKE MR SCULLEY CORPORATE EXECUTIVES ARE INCREASINGLY BEING OFFERED STOCK OPTIONS AS A BIG PART OF THEIR COMPENSATION PACKAGES WHEN THEY'RE HIRED TO REVIVE STRUGGLING COMPANIES OF ALL SIZES OPTIONS ARE A GOOD WAY TO DEFLECT INVESTORS' IRE AT SKYHIGH SALARIES THEY PUT CORPORATE LEADERS AND SHAREHOLDERS ON THE SAME HUNK OF GROUND SAYS JOHN ROBSON FORMER CEO OF GD SEARLE & CO WHO NOW SERVES ON FOUR CORPORATE BOARDS BUT THERE ARE DOZENS OF CASES WHERE PEOPLE CAME IN WITH SIGNIFICANT OPTION PACKAGES AND FOR ONE REASON OR ANOTHER LEFT BEFORE THEY THE PACKAGES RIPENED STOCK OPTIONS CAN ACCOUNT FOR UP TO 80 OF A SENIOR EXECUTIVE'S COMPENSATION PACKAGE IN A TURNAROUND OR SIMILARLY RISKY SITUATION SAYS JUDE RICH CHAIRMAN OF COMPENSATION CONSULTANTS SIBSON & CO IN NEW YORK FIVE OR 10 YEARS AGO HE ADDS IT WOULD HAVE BEEN BETWEEN 40 AND 60 IT HAS DEFINITELY GONE UP BY CONTRAST CHIEF EXECUTIVE OFFICERS OF FORTUNE 100 COMPANIES DERIVED 29 OF THEIR TOTAL PAY PACKAGES FROM STOCK OPTIONS LAST YEAR UP FROM 17 IN 1987 ACCORDING TO AN ANALYSIS BY PEARL MEYER & PARTNERS INC A COMPENSATIONCONSULTING FIRM IN NEW YORK FOR EXECUTIVES THE GROWING RELIANCE ON STOCK OPTIONS MEANS THERE IS NO SOFT LANDING FOR FAILURE SAYS MARK H EDWARDS MANAGING PRINCIPAL AT IQUANTIC INC A SAN FRANCISCO PAYCONSULTING FIRM THAT SPECIALIZES IN HIGHTECHNOLOGY COMPANIES THE SCULLEY CASE IS A GOOD CASE IN POINT HE WALKS AWAY WITH ZERO IN OPTION PROFITS ALONG WITH A DAMAGED REPUTATION LEE IACOCCA PIONEERED THE PRACTICE IN 1978 WHEN HE TOOK THE HELM OF CHRYSLER CORP AND INSISTED ON AN INITIAL SALARY OF ONLY 1 A YEAR HE ALSO RECEIVED OPTIONS TO BUY 400000 SHARES OF CHRYSLER COMMON STOCK AT ABOUT 11 EACH WHEN HE TURNED THE COMPANY AROUND HE EARNED MORE THAN 40 MILLION IN PROFITS BY EXERCISING HIS OPTIONS ACCORDING TO ONE ESTIMATE A CHRYSLER SPOKESWOMAN DECLINED TO CONFIRM THAT FIGURE MR IACOCCA RETIRED AS CHRYSLER'S CHIEF EXECUTIVE IN DECEMBER 1992 OTHER EXECUTIVES ALSO HAVE PROFITED FROM EXERCISING OPTIONS WHEN THEIR CORPORATE REVIVAL EFFORTS BOOSTED A COMPANY'S STOCK PRICE WHEN LAWRENCE BOSSIDY BECAME CHAIRMAN AND CHIEF EXECUTIVE OF ALLIEDSIGNAL INC IN THE SUMMER OF 1991 HE WAS GIVEN OPTIONS TO BUY 250000 SHARES ALONG WITH HIS 1 MILLION STARTING SALARY MR BOSSIDY WIDELY CREDITED WITH ALLIEDSIGNAL'S RECENT TURNAROUND EARNED 664075 FROM EXERCISING OPTIONS ON 25000 SHARES DURING 1992 THE MORRIS TOWNSHIP NJBASED CONGLOMERATE SAYS BUT SOMETIMES THERE IS NO PAYOFF FROM BIG STOCKOPTION PACKAGES AT AILING COMPANIES RICHARD W MILLER WAS HIRED TO REVIVE THE COMPUTER MAKER WANG LABORATORIES INC BUT ENDED UP OVERSEEING ITS BANKRUPTCYLAW PROCEEDINGS HE RESIGNED IN THE WINTER OF 1993 AFTER THREE YEARS AS WANG'S CHAIRMAN AND CHIEF EXECUTIVE WITHOUT EVER EXERCISING A SINGLE ONE OF THE TWO MILLION OPTIONS HE GOT WITH THE JOB THE LOWELL MASS COMPANY EMERGED FROM BANKRUPTCY PROTECTION LAST FALL SIMILARLY JAMES WAVLE RECEIVED OPTIONS TO BUY 510000 SHARES DURING THE FIVE YEARS THAT HE RAN CENTOCOR INC A MALVERN PA BIOTECHNOLOGY CONCERN THE FORMER WARNERLAMBERT CO SENIOR EXECUTIVE RECRUITED IN 1987 TRIED TO TRANSFORM THE SLOWGROWING COMPANY INTO A MAJOR PHARMACEUTICAL MAKER BUT THE TRANSFORMATION DIDN'T WORK AND MR WAVLE RESIGNED IN APRIL 1992 WITHOUT EXERCISING A SINGLE OPTION MANY OTHER EXECUTIVES ARE STILL SITTING ON THEIR OPTIONS COUNTING ON THEIR COMPANIES' TURNAROUNDS LOUIS V GERSTNER JR HIRED LAST SPRING TO RUN INTERNATIONAL BUSINESS MACHINES CORP RECEIVED OPTIONS FOR 500000 SHARES IN HIS COMPENSATION PACKAGE EASTMAN KODAK CO OFFERED GEORGE FISHER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE OPTIONS TO BUY 750000 SHARES LAST DECEMBER COMPENSATION CONSULTANTS VALUED MR FISHER'S OPTION PACKAGE AT ABOUT 13 MILLION TO 17 MILLION THE SPECTRUM SITUATION IS UNLIKELY TO DIMINISH AILING COMPANIES' AFFINITY FOR EXECUTIVE STOCK OPTIONS I AM SURE SCULLEY WILL WALK AROUND THE BLOCK AND COME UP WITH SOMETHING VERY SWEET IN THE FUTURE SAYS JUDITH FISCHER PUBLISHER OF THE NEWSLETTER EXECUTIVE COMPENSATION REPORTS AND HIS NEXT DEAL WILL LIKELY INVOLVE PLENTY OF STOCK OPTIONS SHE ADDS UDAYAN GUPTA CONTRIBUTED TO THIS ARTICLE 9402080103 940208 LAB NOTES BY JERRY BISHOP BASIC RESEARCH YIELDS AN UNEXPECTED PAYOFF A TEST TO DETECT FAUX GRAS THE FAMOUS FRENCH DELICACY FOIE GRAS MUST BY LAW CONSIST ONLY OF LIVERS FROM FATTENED GEESE BUT SOME LESSTHANSCRUPULOUS PRODUCERS ARE ILLEGALLY SPIKING THEIR FOIE GRAS WITH CHICKEN OR TURKEY LIVERS TO CUT COSTS OR THEY ADD CHICKENEGG WHITES TO IMPROVE THE TEXTURE TO CATCH THE FAUX GRAS CROOKS IMMUNOLOGIST ALAIN PARAF OF INRA THE BIG FRENCH RESEARCH AGENCY RECENTLY APPROACHED US IMMUNOLOGIST SANDRA SMITHGILL OF THE FEDERAL NATIONAL CANCER INSTITUTE IN BETHESDA MD WITH A NOVEL IDEA DR SMITHGILL WHO DOES BASIC RESEARCH ON HOW THE IMMUNE SYSTEM RECOGNIZES PROTEINS IS AN EXPERT ON A WELLSTUDIED PROTEIN CALLED LYSOZYME FOUND IN BIRDS THE FRENCH SCIENTIST NOTED THAT GOOSE LYSOZYME IS SLIGHTLY DIFFERENT FROM CHICKEN TURKEY OR DUCK LYSOZYMES HE WONDERED IF THE DIFFERENCE WAS GREAT ENOUGH TO BE DETECTED BY MONOCLONAL ANTIBODIES LABMADE VERSIONS OF THE ANTIBODIES THAT THE IMMUNE SYSTEM OF MAMMALS HURLS AGAINST INVASIONS OF VIRUSES AND OTHER FOREIGN PROTEINS I REALLY DIDN'T THINK IT WOULD WORK SAYS DR SMITHGILL BUT INTRIGUED SHE BEGAN A COLLABORATION WITH DR PARAF AND HIS GRADUATE STUDENT FABIENNE HEMMEN THEY NOW REPORT PRELIMINARY SUCCESS MONOCLONAL ANTIBODIES DESIGNED TO RECOGNIZE CHICKEN LYSOZYME DID DETECT CHICKEN AND TURKEY LIVER MIXED IN FOIE GRAS THEY REPORTED IN THE DECEMBER ISSUE OF THE JOURNAL OF FOOD SCIENCE THE RESEARCHERS ARE NOW SCREENING MORE MONOCLONAL ANTIBODIES TO MAKE THE TEST MORE SENSITIVE DR SMITHGILL SAYS THE TEST ULTIMATELY COULD BE AS SIMPLE TO USE AS THE ANTIBODYBASED HOMEPREGNANCY TESTS NOW IN USE WOMEN WHO WERE STUDENT ACTIVISTS BACK IN THE 1960S SEEM TO BE DOING BETTER IN THEIR FORTIES THAN THE MEN WHO PROTESTED BESIDE THEM BACK IN 1951 PSYCHOLOGISTS IN BOSTON INTERVIEWED 379 MOTHERS OF KINDERGARTEN CHILDREN ON THEIR PARENTING PRACTICES AND THE CHILDREN'S BEHAVIOR OTHER RESEARCHERS TRACKED DOWN MANY OF THE CHILDREN IN 1977 WHEN THEY WERE 31 AND AGAIN IN 1987 WHEN THEY WERE 41 TO SEE HOW THEY WERE FARING THE DATA STORED AT RADCLIFFE COLLEGE'S HENRY A MURRY RESEARCH CENTER HAVE NOW BEEN ANALYZED BY TWO PSYCHOLOGISTS TO SEE WHAT DIFFERENCES THERE WERE BETWEEN THE CHILDREN WHO BECAME STUDENT ACTIVISTS IN THE 1960S AND THOSE WHO DIDN'T AT AGE 31 THE FEMALE ACTIVISTS WERE LESS INVOLVED IN FAMILY LIFE AND HAD BETTER JOBS THAN THEIR NONACTIVIST FEMALE PEERS OF EQUIVALENT EDUCATION AT 41 THEY SHOWED LESS STRAIN REPORTED CAROL E FRANZ FORMERLY OF THE MURRY CENTER AND NOW AT WILLIAMS COLLEGE AND DAVID C MCCLELLAND OF BOSTON UNIVERSITY IN THE JANUARY JOURNAL OF PERSONALITY AND SOCIAL PSYCHOLOGY BUT THE MALE ACTIVISTS DID LESS WELL THAN THE NONACTIVIST MEN IN GAINING HIGHSTATUS WELLPAYING JOBS THE MEN ALSO HAD A LOWER SENSE OF PSYCHOLOGICAL WELLBEING AND FELT A GREATER SENSE OF STRAIN AT AGE 41 THAN THEIR NONACTIVIST PEERS THE WOMEN'S BETTER ADJUSTMENT IN MIDLIFE MIGHT REFLECT THE OUTCOME OF THEIR STUDENT ACTIVISM THE RESEARCHERS SPECULATED THE WOMEN WERE PROTESTING FOR FREEDOM AND RIGHTS FOR EVERYONE TO DEVELOP THEIR FULLEST POTENTIAL GOALS THAT WERE PARTIALLY FULFILLED IN THE FEMINIST MOVEMENT BUT THE MEN IN THEIR DRAFT RESISTANCE REBELLED AGAINST THE TRADITIONAL MALE ROLE OF BEING A SOLDIER AND PROVIDER A REBELLION THAT FAILED TO PRODUCE ANY ORGANIZED SOCIAL MOVEMENT THE IMPACT OF THE CONSERVATIVE REAGAN YEARS ON THESE LIBERALMINDED MEN MAY HAVE BEEN PARTICULARLY NEGATIVE THE RESEARCHERS SUGGESTED RESEARCH INTO BOTHERSOME NOISE IN MAGNETIC RECORDINGS LEADS TO A NEW WAY TO FOIL CREDITCARD COUNTERFEITERS ELECTRICAL ENGINEERS RONALD S INDECK AND MARCEL W MULLER AT WASHINGTON UNIVERSITY IN ST LOUIS HAVE BEEN ANALYZING THE NATURE OF MEANINGLESS UNWANTED SIGNALS FROM MAGNETIC RECORDINGS THEY DISCOVERED THAT THERE IS A PATTERN TO THE NOISE THAT IS UNIQUE TO EACH RECORDING AND EVEN TO EACH SPOT ON A RECORDING THE UNWANTED SIGNAL HIDDEN SAY ON A VIDEOTAPE IS NOT ONLY DIFFERENT FROM THAT ON ANY OTHER VIDEOTAPE BUT THE NOISE ON THE FIRST INCH IS DIFFERENT FROM THAT ON EVERY OTHER INCH OF THE SAME TAPE MOREOVER SAYS DR INDECK THIS MAGNETIC FINGERPRINT IS A PERMANENT FEATURE OF EACH RECORDING AND IT CAN'T BE COPIED OR DUPLICATED THIS IS BECAUSE THE MICROSCOPIC MAGNETIC PARTICLES THAT PRODUCE THE SIGNAL ARE SCATTERED RANDOMLY ON EACH TAPE DISK OR CARD A CREDITCARD FORGER WOULD HAVE TO TAKE A PAIR OF MICROSCOPIC TWEEZERS AND SPEND THOUSANDS OF YEARS TRYING TO POSITION MILLIONS OF MAGNETIC PARTICLES IN A PATTERN THAT WOULD DUPLICATE THE FINGERPRINT ON THE MAGNETIC STRIPE OF A CREDIT CARD DR INDECK EXPLAINS THE RESEARCHERS ARE NOW DEVELOPING A PROGRAM FOR THE CHIP IN STORE AND RESTAURANT CREDITCARD READERS THAT CAN RECOGNIZE EACH CARD'S UNIQUE MAGNETIC FINGERPRINT DR INDECK SAYS FAILURE OF THE FINGERPRINT TO CORRELATE WITH THE CARD'S NUMBER WOULD REVEAL COUNTERFEITS MAGNETIC FINGERPRINTING ALSO MIGHT BE USED TO DETECT TAMPERING WITH TAPE RECORDINGS OR TO SPOT PIRATED MUSIC TAPES IN GEORGIA A CHEROKEE BURIAL GROUND WAS LEFT UNDISTURBED BY A NEW POWER LINE WHEN THE LINE WAS THREADED THROUGH A 16INCHDIAMETER TUNNEL BORED UNDER THE SITE BY A NEW DRILLING SYSTEM DEVELOPED BY THE ELECTRIC POWER RESEARCH INSTITUTE PENN STATE IN URGING FARMERS TO RAISE OSTRICHLIKE EMUS SAYS THE GIANT BIRDS' BEEFLIKE RED MEAT IS LOW IN FAT CALORIES AND CHOLESTEROL EARNING IT AN ENDORSEMENT FROM THE AMERICAN HEART ASSOCIATION 9402080102 940208 SMALL FIRMS STEP OUT OF GIANTS' SHADOWS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY UNDER THE GLASS DOME OF THIS CITY'S BOLSA AND IN OTHER EMERGING MARKETS AROUND THE WORLD INVESTORS ARE SHIFTING THEIR FOCUS FROM LARGE ENTERPRISES TOWARD LITTLE COMPANIES WITH BIG STORIES FOR THE PAST THREE YEARS EMERGINGMARKET INVESTORS PLAYED IT SAFE STICKING WITH THE LARGEST STOCKS AND WHY NOT THE GIANTS DID SPECTACULARLY WELL TELEFONOS DE MEXICO FOR INSTANCE CLIMBED 22 IN LOCALCURRENCY TERMS AND CEMENTOS MEXICANOS SOARED 91 THEIR STOCKS TRADED SMOOTHLY ANALYST COVERAGE WAS EXTENSIVE AND IT WAS EASY TO UNDERSTAND HOW MEXICO'S TELEPHONE AND CEMENT GIANTS WOULD BENEFIT AS THE COUNTRY MODERNIZED BUT THIS TYPE OF BIGPICTURE MACROECONOMIC STOCK PICKING IS GIVING WAY TO THE MICROBET WHEN EMERGING ECONOMIES BEGIN TO STABILIZE IT IS VERY IMPORTANT TO LOOK AT WHAT SMALL COMPANIES ARE DOING BECAUSE THEY CAN GROW EARNINGS FASTER THAN LARGER COMPANIES SAYS SORAYA BETTERTON MANAGER OF THE GT LATIN AMERICA GROWTH FUND JUST LAST WEEK TELEFONOS DE MEXICO OR TELMEX POSTED A MEAGER 45 GAIN IN PER SHARE EARNINGS FOR 1993 ADJUSTED FOR INFLATION TELMEX CAN'T GROW AT 20 PER ANNUM ANY MORE MS BETTERTON SAYS BUT MAYBE SMALLER MEXICAN COMPANIES CAN BOTTLERS ENGINEERING AND CONSTRUCTION COMPANIES BANKS AND RETAILERS SO INVESTORS ARE NOW LOOKING AT SMALL COMPANIES IN BRAZIL CHILE ARGENTINA MEXICO TURKEY AND IN MANY OTHER EMERGING MARKETS AROUND THE WORLD OUR CLIENTS WANT TO MOVE DOWN IN CAPITALIZATION SAYS RICHARD WATKINS CHIEF EXECUTIVE OFFICER OF LATININVEST SECURITIES LTD IN LONDON THEY REALIZE THE BIG STOCKS ARE NOT THE WAY TO MAKE MONEY IN 1994 IN SMALL OR VOLATILE MARKETS SUCH AS THOSE IN PERU AND VENEZUELA INVESTORS ARE STILL STICKING WITH THE LARGEST STOCKS HE SAYS THERE HAS ALWAYS BEEN A CADRE OF SMALLFOREIGNSTOCK SPECIALISTS AROUND BUT NOW MANY TRADITIONAL INTERNATIONALSTOCK PLAYERS ARE LOOKING AT SMALLER ISSUES AND NEW FOREIGNSTOCK FUNDS ARE BEING LAUNCHED DEDICATED TO SMALL STOCKS MONTGOMERY ASSET MANAGEMENT LAUNCHED ITS INTERNATIONAL SMALL CAP FUND IN OCTOBER IN DECEMBER GT CAPITAL MANAGEMENT OPENED ITS EMERGING MARKETS SMALL COMPANIES FUND AN OFFSHORE FUND FOR LARGE EUROPEAN INVESTORS THAT INVESTS IN COMPANIES WITH A CAPITALIZATION NO LARGER THAN 250 MILLION THERE ARE TWO DIFFICULTIES WITH THIS INVESTMENT STYLE FIRST MANY SMALL COMPANIES IN EMERGING MARKETS ARE CLOSELY HELD BY FAMILIES LEAVING LITTLE STOCK AVAILABLE IN THE PUBLIC MARKET CASA AUTREY A MEXICAN PHARMACEUTICALS DISTRIBUTOR FOR EXAMPLE HAS 106 MILLION SHARES BUT ONLY 275 MILLION SHARES TRADE IN THE PUBLIC MARKET THE OTHER 785 MILLION SHARES ARE OWNED BY THE AUTREY FAMILY THE SMALL NUMBER OF SHARES AVAILABLE NOT ONLY MAKES AUTREY AND OTHER SMALL STOCKS DIFFICULT TO BUY BUT IT ALSO MAKES THEM EVEN HARDER TO SELL IF THE MARKET TAKES A DIVE ALSO BECAUSE IT IS DIFFICULT FOR MANY INSTITUTIONS TO BUILD BIG POSITIONS IN SMALL STOCKS ANALYST COVERAGE IS LIKELY TO BE THIN JOHN BOICH MANAGER OF THE NEW MONTGOMERY FUND SAYS DATA BASES SUCH AS I/B/E/S AND WORLDSCOPE ARE DIMINISHING THE PROBLEM BY CONTRIBUTING TO THE DECLINE OF THE INFORMATION BARRIER AS HE CALLS IT STILL INTENSIVE LEGWORK IS REQUIRED TO KEEP CONTACT WITH SMALL COMPANIES NEW TERRITORIES MR BOICH ONCE TRAVELED TWO HOURS TO A SMALL TOWN OUTSIDE SANTIAGO CHILE TO VISIT SANTA ISABEL A GROCERYSTORE CHAIN STANDING IN LINE WITH FOOD VENDORS AND EMPLOYEES TO SEE MANAGEMENT YOU CAN'T APPROACH THESE NONUS COMPANIES WITH THE SAME ATTITUDE AS YOU DO IN AMERICA SAYING 'I'M AN ANALYST GIVE ME THE NUMBERS' MR BOICH SAYS IF YOU APPROACH THEM LIKE THAT YOU GET NOTHING MONTGOMERY'S FUND MANAGERS WHO SPEAK A TOTAL OF SOME SEVEN LANGUAGES WILL VISIT 450 COMPANIES THIS YEAR HE PREDICTS MR BOICH PLANS ON BEING IN AIRPLANES OR HOTEL ROOMS ABOUT THREE MONTHS OUT OF THE YEAR THERE ISN'T MUCH RESEARCH ON THESE COMPANIES AND THAT'S THE EXCITING PART OF IT SAYS ANDREW BOCZEK COMANAGER OF THE NEW GT CAPITAL FUND IN SEVERAL CASES WE WERE THE FIRST INSTITUTIONAL INVESTORS MANAGEMENTS HAD EVER SEEN MR BOCZEK RECALLS DRIVING AROUND MEXICO CITY FOR HOURS LOOKING FOR THE HEADQUARTERS OF GRUPO MARTI A SPORTING GOODS DISTRIBUTOR BUT THE SEARCH PAID OFF SHARES OF MARTI ARE UP ABOUT 10 THIS YEAR OTHER INQUIRIES ARE LESS FRUITFUL MANAGEMENT AT GRUPO HERDEZ A MEXICAN FOOD COMPANY HAS TURNED DOWN REQUESTS FOR A MEETING FROM MUTUALFUND MANAGERS IN MEXICO ASIDE FROM GRUPO MARTI MR BOCZEK ALSO LIKES TABLEX SA A PASTA AND COOKIE COMPANY SERVICIOS FINANCIEROS QUADRUM A LEASING AND FACTORING COMPANY THAT RECENTLY RECEIVED A BANKING LICENSE AND RADIO CENTRO A BROADCAST COMPANY QUADRUM AND RADIO CENTRO TRADE ON THE NEW YORK STOCK EXCHANGE IN BRAZIL THE GT FUND PURCHASED STOCK IN RETAILING CHAINS MESBLA SA AND CASA ANGLO SA AND IN IOCHPEMAXION SA A DISTRIBUTOR OF FARM EQUIPMENT AND A MAKER OF BUS AND TRUCK CHASSIS IN ARGENTINA MR BOICH OF MONTGOMERY SUGGESTS INVESTORS LOOK AT BANCO DEL SUD A REGIONAL BANK THE STOCK HAS A CAPITALIZATION OF ABOUT 550 MILLION ASSET GROWTH WILL BE ABOUT 25 THIS YEAR HE SAYS AND FEE INCOME IS GROWING LIKE CRAZY MR BOCZEK OF GT CAPITAL CALLS INVESTING IN SMALL STOCKS IN EMERGING MARKETS THE NEXT FRONTIER EVENTUALLY WE ARE GOING TO INVEST IN THE MIDDLE EAST AND AFRICA 9402080101 940208 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 CINCINNATI GAS & ELECTRIC CO 220 MILLION OF FIRSTMORTGAGE BONDS BONDS PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 110 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 15 1999 WAS PRICED AS 58S AT 9979 TO YIELD 5849 THE BONDS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 110 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 15 2004 WAS PRICED AS 645S AT 99818 TO YIELD 6475 THE BONDS WERE PRICED AT A SPREAD OF 59 BASIS POINTS ABOVE THE WHENISSUED TREASURY BOTH PARTS ARE NONCALLABLE AND RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE FEB 14 1997 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE COUPON ON THE NONCALLABLE ISSUE WILL FLOAT AND PAY QUARTERLY AT 15 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE FIRST COUPON WILL BE SET MAY 14 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INTERCEL INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 825 EACH THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CO AND EQUITABLE SECURITIES CORP TRISM INC INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC AND SMITH BARNEY SHEARSON INC WEBCO INDUSTRIES INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO AND DEAN WITTER REYNOLDS FEDERAL HOME LOAN MORTGAGE CORP 360 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1674 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 900 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199440 IS BACKED BY FANNIE MAE 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REMIC SECURITIES OFFERED BY UTENDAHL CAPITAL PARTNERS THE OFFERING SERIES 199438 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1625 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC 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 BANGKOK BANK LTD THAILAND 400 MILLION OF 10YEAR SUBORDINATED CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA MORGAN STANLEY & CO INDICATED COUPON 3 TO 325 CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 23 TO 26 MANDATORILY CONVERTIBLE AFTER THREE YEARS IF SHARE PRICE EXCEEDS 140 OF CONVERSION PRICE FEES 25 LESS 033 FOR LEAD MANAGER CESAR CORP JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 075 NOTES DUE MAR 31 1998 AT PAR VIA NOMURA BANK SWITZERLAND NOTES CONVERTIBLE FROM MARCH 7 TO MARCH 17 1998 AT EXPECTED 25 PREMIUM TERMS FIXED FEB 14 FEES 1625 CREDIT FONCIER DE FRANCE FRENCH AGENCY 730 MILLION FRENCH FRANCS OF 76 EUROBONDS DUE MARCH 7 1997 AT ISSUE PRICE PAR VIA BANKERS TRUST FRANCE SA REDEMPTION AT 75 MULTIPLIED BY SUM OF ONE PLUS FOLLOWING CACF MINUS CACI ALL DIVIDED BY CACI TO MAXIMUM ZERO CACF IS VALUE OF CAC 40 INDEX FOUR WEEKS BEFORE MATURITY CACI IS AVERAGE OF CAC 40 INDEX FROM THREE READINGS FEB 8 FEES UNDISCLOSED HALIFAX BUILDING SOCIETY UK 500 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO AND SG WARBURG SECURITIES LTD REOFFERED AT 9972 INTEREST PAYABLE QUARTERLY FLAT AT THREEMONTH LONDON INTERBANK OFFERED RATE CALLABLE QUARTERLY AT PAR FROM MARCH 1997 FEES 043 MAEDA CORP JAPAN 200 MILLION OF 125 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 3 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM MARCH 17 TO FEB 17 1998 TERMS FIXED FEB 14 INDICATED PREMIUM 25 MONDAY'S CLOSING SHARE PRICE 1270 YEN FEES 225 LESS 015 FOR LEAD MANAGER 9402080100 940208 ENTERTAINMENT AVERAGE JOES SLUG EACH OTHER FOR A CABLE TELEVISION PROGRAM BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL TAKE THE GLITZ AND DECORUM AWAY FROM BOXING AND WRESTLING AND YOU HAVE THE HOTTEST NEW SPORT TO ARRIVE ON CABLE AND PAYPERVIEW TELEVISION FIGHTS BETWEEN ORDINARY GUYS BILLED AS THE ULTIMATE BARROOM BRAWL A SERIES OF REGIONAL MATCHES KNOWN AS TOUGHMAN CONTESTS WILL AIR THURSDAY ON CABLE'S PRIME NETWORK TO ABOUT 40 MILLION PEOPLE NATIONWIDE THE BOUTS PIT MEN WITH NO PROFESSIONAL BOXING EXPERIENCE AND LITTLE SKILL AGAINST ONE ANOTHER IN THE RING SIXTEEN REGIONAL WINNERS WILL DUKE IT OUT AT THE TOUGHMAN WORLD CHAMPIONSHIP AT LAS VEGAS'S MGM GRAND HOTEL IN MAY AND THE PAYPERVIEW TELECAST IS EXPECTED TO DRAW THE EVENT'S BIGGEST AUDIENCE YET FOR SHOWTIME EVENT TELEVISION PAY PER VIEW A UNIT OF VIACOM INC THE LAST THING I'M GOING TO TELL ANYONE IS THAT THIS IS GOOD BOXING SAYS ART DORE A FORMER BOXING PROMOTER WHO STARTED THE FIGHTS IN BAY CITY MICH IN 1979 BUT IT'S REAL THIS IS WHAT PEOPLE WANT TO SEE THE TOUGHMAN CONTEST ATTRACTS ALL SORTS OF CONTENDERS FROM DOCTORS TO BARROOM BULLIES LEO THE LION RICHARDSON A SYRACUSE BARTENDER LISTS LIFTING WEIGHTS AND RIDING HARLEY DAVIDSONS AS HIS HOBBIES KEVIN COUNTRY BOY HELDENBRANDT A MISSOURI DEPARTMENT OF CORRECTIONS ENGINEER WHO IS DEAF IS ABLE TO FIGHT BUT CAN'T HEAR THE BELL SO THE REFEREE THROWS A TOWEL IN HIS FACE AT THE END OF EACH ROUND LAST YEAR AN EXCON FROM MONROE LA RANDY PENITENTIARY BROOKS FOUGHT TONY SUPER TROOPER WALL A CALIFORNIA STATE TROOPER THE EXCON WHO HAD SERVED TIME FOR MANSLAUGHTER WON AFTER THE AMATEUR SLUGFEST IN LAS VEGAS BECAME A SURPRISE HIT ON PAYPERVIEW LAST YEAR AT 1295 A POP SET PAY PER VIEW DECIDED TO AIR THIS YEAR'S REGIONAL FIGHTS IN PART TO CREATE DEMAND FOR THE PAYPERVIEW EVENT IN MAY FOR A FRACTION OF THE COST OF BIGNAME PRIZEFIGHTS SET PAY PER VIEW HOPES TO REAP BIG PROFITS FROM TOUGHMAN THE PAYPERVIEW INDUSTRY BADLY NEEDS PROGRAMMING TO BOOST REVENUE IN THE EVENTS CATEGORY WHICH FOR 1993 IS ESTIMATED TO BE 25 MILLION BELOW ITS 1991 HIGH OF 240 MILLION ACCORDING TO PAUL KAGAN ASSOCIATES INC BECAUSE BOXING REVENUE DRIVES THE EVENTS CATEGORY GROWTH ENDED AFTER MIKE TYSON WAS CONVICTED OF RAPE AND SENTENCED TO PRISON IN 1992 SO WITH THE PROMISE OF NEARLIMITLESS CHANNEL CAPACITY LOOMING PAYPERVIEW EVENT DISTRIBUTORS ARE TESTING ALMOST EVERYTHING WRESTLING ROCK CONCERTS OPERA COLLEGE SAT STUDY COURSES EVEN AMATEUR FISTICUFFS DURING THE REGIONAL MATCHES ON CABLE SET PAY PER VIEW HOPES TO BUILD APPEAL BY PROMOTING LOCAL HEROES SUCH AS ERIC BUTTERBEAN ESCH 26 WHO EMERGED AS A CROWD PLEASER IN LAS VEGAS LAST YEAR MR ESCH A BALD 300POUND ALABAMA CONSTRUCTION WORKER WHO IS PARTIAL TO DENIM TRUNKS ENTERED HIS FIRST TOUGHMAN CONTEST ON A FRIEND'S DARE I LIKE TO FIGHT MR ESCH SAYS I DON'T DO DRUGS BUT THIS IS MY KIND OF HIGH I GET EXCITED THE CROWD IS SCREAMING AND LAST YEAR THERE WERE BUTTERBEAN SIGNS EVERYWHERE HE VOWS TO GO FOR KNOCKOUTS THIS YEAR THE CONTESTS HAVE BEEN SELLING OUT LOCAL ARENAS IN PLACES RANGING FROM DAYTON OHIO AND ASHEVILLE NC TO DETROIT CONTESTANTS AFTER MEETING MINIMUM AGE AND WEIGHT STANDARDS 18 YEARS AND 175 POUNDS AND PASSING A PHYSICAL NEED ONLY SHOW UP TO COMPETE FANS RELISH THE NONONSENSE TAKEALLCOMERS FORMAT THE LOSER LEAVES THE RING WHILE THE WINNER FIGHTS AS MANY AS FOUR CHALLENGERS IN A SINGLE NIGHT RULES ARE FEW SLUGGING IS THE FAVORED TECHNIQUE BECAUSE THERE ARE ONLY THREE ROUNDS OF 60 SECONDS EACH COMPARED WITH PRO BOXING'S 10 THREEMINUTE ROUNDS HOLDING TRIPPING AND OTHER DIRTY TRICKS ARE FROWNED UPON BUT SOMETIMES OVERLOOKED BY THE JUDGES WHO SCORE THE BOUTS STILL THE MATCHES AREN'T AS BRUTAL AS MIGHT BE EXPECTED TOUGHMAN CONTESTANTS WEAR GROIN PROTECTORS HEAD GEAR AND BULKY 16OUNCE GLOVES HEAVYWEIGHT BOXERS USE 10OUNCE GLOVES NO ONE HAS BEEN SERIOUSLY INJURED IN A TOUGHMAN BOUT THOUGH THE CONTEST'S NUMEROUS IMITATORS MAY NOT BE ABLE TO MAKE THAT CLAIM LAST YEAR THE REFEREE WAS FORCED TO STOP A FIGHT DURING THE CHAMPIONSHIP IN LAS VEGAS MANUEL GRANDADDY RODRIGUEZ A 42YEAROLD MICHIGAN AUTO WORKER WASN'T HURT BUT THE REFEREE HALTED ACTION LONG ENOUGH TO PULL UP THE FIGHTER'S DROOPING TRUNKS MR DORE SERVES AS MASTER OF CEREMONIES RING ANNOUNCER AND COLOR COMMENTATOR DURING THE MATCHES ESCHEWING THE PASSIVE ROLE OF PROBOXING ANNOUNCERS MR DORE REGULARLY SCREAMS AT THE FIGHTERS A RECENT TIRADE NEVER TAKE A STEP BACK TOUGHMEN GO STRAIGHT FORWARD ONLY 10 SECONDS LEFT GET HIM GET HIM GET HIM GET HIM FIGHT ON THE TALENT IS CHEAP TOO INSTEAD OF THE 20 MILLION PURSE THAT MIGHT BE RESERVED FOR A PROFESSIONAL FIGHTER ON PAYPERVIEW THE TOUGHMAN CHAMP RECEIVES 50000 AND LOSERS GO HOME EMPTYHANDED FURTHER SET PAY PER VIEW WILL PAY A RELATIVE PITTANCE TO MARKET TOUGHMAN 600000 COMPARED WITH THE 3 MILLION TYPICALLY SPENT ON HEAVYWEIGHT CHAMPIONSHIPS PRIME A CHAIN OF REGIONAL SPORTS NETWORKS WILL AIR 30SECOND SET SPOTS DURING REGIONAL CONTESTS FOR MAY'S PAYPERVIEW EVENT SET HAS SIGNED VETERAN MADISON SQUARE GARDEN BOXING ANNOUNCER BRUCE BECK TO CALL THE CHAMPIONSHIP FIGHT TV PERSONALITY AND 198182 TOUGHMAN CHAMP MR T WILL BE A CELEBRITY ANNOUNCER AND CORNER MANAGER THERE ARE NO FAVORITES YET AND IT'S UNCERTAIN WHETHER LAST YEAR'S CHAMP SCOTT THE HAMMER BISKNER 24 YEARS OLD A MACHINIST FROM BAY CITY WILL COMPETE A NEWLYWED HE SAYS HIS PRIORITIES ARE SHIFTING BUT DON'T COUNT HIM OUT I'M STILL THINKING ABOUT IT HE SAYS SET PREDICTS IT WILL PULL IN SOME 200000 PAYPERVIEW ORDERS FOR THE LAS VEGAS EVENT ITS PROJECTED GROSS WILL BE ABOUT 3 MILLIONSMALL COMPARED WITH THE 20 MILLION TO 50 MILLION A FIRSTRANK HEAVYWEIGHT CONTEST CAN DRAW BUT ATTRACTIVE ENOUGH FOR SET TO BUY 10 YEARS' RIGHTS TO TOUGHMAN MR DORE FOR ONE IS CERTAIN VIEWERS WILL JUMP AT THE CHANCE TO PAY 1495 TO SEE NONAME AMATEURS FIGHT SOME PEOPLE LIKE TO WATCH GOLF HE SAYS SOME PEOPLE LIKE TO FISH AND SOME LIKE TO WATCH FIGHTS THEY'RE GONNA GO BONKERS 9402080099 940208 PRUDENTIAL SECURITIES PULLS OUT THE STOPS TO POLISH ITS IMAGE BROKERAGE FIRM CREATES ADS FEATURING STRAIGHT TALK' HIRES EXETHICS PROFESSOR BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS GOING TO UNUSUAL LENGTHS TO SHORE UP ITS BATTERED CORPORATE IMAGE THE NATION'S FOURTHLARGEST BROKERAGE FIRM NAMED JOHN F SETTEL A FORMER COLLEGE PROFESSOR WHO TAUGHT COURSES IN BUSINESS ETHICS TO THE NEW POST OF CORPORATE VALUES OFFICER MEANWHILE PRUDENTIAL LAUNCHED A NEW ADVERTISING CAMPAIGN FOCUSING ON STRAIGHT TALK OR AS PRUDENTIAL PUTS IT THE HONESTY AND CANDOR NECESSARY IN THE BROKER/CLIENT RELATIONSHIP THE MOVES ARE A BID BY THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT TO STAVE OFF A DRUMBEAT OF NEGATIVE PUBLICITY STEMMING FROM ITS LIMITEDPARTNERSHIP SCANDAL PRUDENTIAL HAS AGREED TO PAY AT LEAST 371 MILLION IN FINES AND PENALTIES TO SETTLE FEDERAL AND STATE CHARGES THAT IT IMPROPERLY SOLD 815 BILLION OF PARTNERSHIPS IN THE 1980S PRUDENTIAL HAS A RESPONSIBILITY TO MAINTAIN AND ENHANCE THE QUALITY AND HIGH STANDARDS OF ITS SERVICES PRODUCTS AND STAFF JOHN P MURRAY PRUDENTIAL'S CORPORATERISK MANAGEMENT DIRECTOR SAID OF THE SETTEL APPOINTMENT MR SETTEL WHO ALSO IS A FORMER PRUDENTIAL DIRECTOR WHO WORKED AT THE FIRM BETWEEN 1974 AND 1989 WILL OVERSEE THE IMPLEMENTATION OF THE FIRM'S POLICIES AND DAILY BUSINESS AMONG MR SETTEL'S PRIOR POSTS AT PRUDENTIAL WAS DIRECTOR OF CORPORATE TRAINING HE ALSO HAD SERVED FOR SEVERAL YEARS ON THE NEW YORK STOCK EXCHANGE HEARING BOARD PRUDENTIAL'S NEW ADS WHICH DEBUTED OVER THE WEEKEND WILL FEATURE THE FIRM'S BROKERS AND CLIENTS IN THE FIRST PRINT ADS HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE SAYS STRAIGHT TALK MEANS IF WE FALL SHORT WE'LL HEAR ABOUT IT THAT'S GOOD IT MAKES US DO BETTER MR SIMMONS STANDING WITH HEAD SLIGHTLY COCKED AND HANDS STUFFED IN HIS POCKETS ADDS STRAIGHT TALK MEANS OUR INVESTORS HEAR THE UPSIDE AND DOWNSIDE OF EVERY OPPORTUNITY SAYS RONNA LICHTENBERG PRUDENTIAL'S MARKETING DIRECTOR THIS REPRESENTS A SIGNIFICANT DEPARTURE FROM THE TRADITIONAL BROKERAGE ADS OF THE PAST INDEED PRUDENTIAL'S PRIOR AD CAMPAIGN FEATURED THE SLOGAN THE MOST IMPORTANT THING WE EARN IS YOUR TRUST 9402080098 940208 ECONOMY AS CAPITAL SPENDING GROWS FIRMS TAKE A HARD LOOK AT RETURNS FROM THE EFFORT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS CORPORATE AMERICA RATCHETS UP ITS CAPITAL SPENDING IT'S DOING SO WITH A MUCH KEENER EYE TO PROFITING FROM THE EFFORT A GROWING NUMBER OF COMPANIES IN THE US ARE SETTING AGGRESSIVE RETURNONINVESTMENT HURDLES FOR CAPITAL SPENDING THE MONEY THAT'S SPENT ON NEW MACHINES COMPUTERS AND OTHER EQUIPMENT LAST FALL RJR NABISCO INC TOLD ITS MANAGERS THAT NEW CAPITAL EXPENDITURES MUST CUT THE TOBACCO AND FOOD COMPANY'S COSTS BY AN AMOUNT EQUAL TO 20 OF THE INVESTMENT AND IN THE FIRST YEAR TELECOMMUNICATIONS GIANT AMERICAN TELEPHONE & TELEGRAPH CO HAS ALSO SET TOUGH NEW GUIDELINES THAT SIMILARLY HOLD CAPITAL SPENDERS' FEET TO THE FIRE COMPANIES OF COURSE HAVE ALWAYS DEMANDED A CERTAIN RATE OF RETURN FOR EQUIPMENT SPENDING BUT IN THE CURRENT CLIMATE OF SLOW SALES GROWTH IN THE US CORPORATIONS ARE INSISTING ON HIGHER AND MORE IMMEDIATE RETURNS IN AN ODD WAY CAPITAL SPENDING HAS BECOME SOMETHING OF A PROFIT CENTER CHIEF EXECUTIVES ARE BECOMING MUCH MORE DISCIPLINED ABOUT SAYING OK TO SPENDING REQUESTS SAYS ENNIUS BERGSMA OF MCKINSEY & CO THE MANAGEMENT CONSULTING FIRM THEY WANT TO KNOW WHAT WILL HAPPEN IN YEAR ONE TWO AND THREE RATHER THAN PLOW MONEY IN AND REALIZE NOTHING MATERIALIZED NOTABLY THE SHARPER SCRUTINY ISN'T SCARING SPENDING PROJECTS AWAY ECONOMISTS SAY THAT FOR THE SECOND YEAR IN A ROW COMPANIES THIS YEAR ARE EXPECTED TO BOOST SPENDING ON EQUIPMENT BY MORE THAN 12 DRI/MCGRAW HILL WHICH FORECASTS ECONOMIC TRENDS SEES CAPITAL SPENDING ON EQUIPMENT IN THE US REACHING A RECORD 457 BILLION THIS YEAR IT EXPECTS CAPITAL SPENDING IN TOTAL WHICH INCLUDES THE CONSTRUCTION OF NEW PLANTS TO REACH 610 BILLION UP 11 FROM 1993 WE KEEP SEEING NEW OPPORTUNITIES FOR SAVING MONEY THROUGH CAPITAL INVESTMENTS SAYS REUBEN MARK CHIEF EXECUTIVE OF COLGATEPALMOLIVE CO THE BIG MAKER OF HOUSEHOLD AND PERSONALCARE PRODUCTS ONE RECENT OPPORTUNITY INVOLVED THE COMPANY'S ITALIAN UNIT WHERE COLGATE INSTALLED 1 MILLION WORTH OF NEW AUTOMATED EQUIPMENT FOR PACKAGING THE COMPANY'S STANDUP TOOTHPASTE TUBES THE MACHINES REPLACED SOME WORKERS ESTIMATED SAVINGS TO COLGATE IN THE FIRST YEAR 250000 THE COMPANY IS DEMANDING MORE OF THIS SORT OF COSTSAVING INVESTMENT FROM ITS MANAGERS IN 1994 IT WANTS TOTAL CAPITAL EXPENDITURES TO EQUAL 6 OF SALES UP FROM 52 OF SALES LAST YEAR WHEN MR MARK BECAME CHIEF EXECUTIVE IN 1984 ROUGHLY 13 OF COLGATE'S TOTAL CAPITAL SPENDING WAS GOING TOWARD COSTSAVING VENTURES THE REST WENT INTO BUILDING NEW PLANTS AMONG OTHER THINGS NOW THE COMPANY IS DEMANDING THAT FULLY 60 OF ITS CAPITAL SPENDING BE FOR COSTSAVING PROJECTS COLGATE EVEN HAS ASSIGNED A FORCE OF SPENDING POLICE TO TRACK THE RATE OF RETURN ON CAPITAL EXPENDITURES THIS IS NOT MISTY INGMAR BERGMAN STUFF SAYS MR MARK IN FACT PART OF A MANAGER'S COMPENSATION IS DETERMINED BY HOW WELL HE OR SHE MEETS THE CAP SPENDING GUIDELINES WE'RE IN A BRAVE NEW WORLD EXPLAINS LAWRENCE RICCIARDI PRESIDENT OF RJR NABISCO IN THE PAST MANY COMPANIES WERE LESS PRECISE ABOUT BUDGETING FOR CAPITAL SPENDING THAN BUDGETING FOR PROFIT AND LOSS HE SAYS I KNOW THIS HAS CHANGED AT RJR THE COMPANY FOR EXAMPLE IS SPENDING 62 MILLION THIS YEAR TO INSTALL THREE LARGER OVENS AT ITS CHICAGO BAKERY OPERATIONS RJR A UNIT OF RJR NABISCO HOLDINGS CORP EXPECTS THE NEW OVENS WILL LET IT PRODUCE MORE COOKIES IN THE SAME AMOUNT OF TIME AS ITS OLD EQUIPMENT AND EMPLOY FEWER WORKERS TO MONITOR THE PROCESS THE COMPANY ALSO EXPECTS THE OVENS TO PRODUCE 12 MILLION IN COST SAVINGS AND OTHER BENEFITS IN THEIR FIRST YEAR OF OPERATION AT EATON CORP THE BIG AUTOPARTS SUPPLIER PRESIDENT JOHN RODEWIG SAYS HIS SCRUTINY OF CAPITAL SPENDING IS ALSO MORE INTENSE THAN IT WAS A FEW YEARS AGO NOW WHEN THE COMPANY REPLACES AN OLD MACHINE WITH A NEW ONE WE LOOK VERY STRINGENTLY FOR PRODUCTIVITY IMPROVEMENTS AND INCREASED FLEXIBILITY HE SAYS ONE OF THE WAYS EATON PUSHES MANAGERS TO MAKE WISER SPENDING DECISIONS IS BY MEASURING THE RETURN ON THE INVESTMENT WITHOUT DEPRECIATION BY EXCLUDING DEPRECIATION WHICH EXPENSES THE COST OF EQUIPMENT OVER A NUMBER OF YEARS THE CAPITAL COST IS HIGHER ON PAPER FOR MANAGERS THAT RAISES THE BAR FOR RETURN ON INVESTMENT EXACTLY WHAT EATON INTENDED AT&T SET HIGHER STANDARDS FOR CAPITAL SPENDING LAST YEAR AND TIED MANAGEMENT COMPENSATION TO HOW WELL THE INVESTMENTS PERFORM THE NEW SYSTEM ENCOURAGES MANAGERS TO ACT LIKE THEY ARE RUNNING THEIR OWN BUSINESS SAYS JAMES MEENAN CHIEF FINANCIAL OFFICER OF THE LONGDISTANCE DIVISION IT EVEN ATTEMPTS TO MEASURE INTANGIBLES SUCH AS WHETHER A CUSTOMER STAYS WITH AT&T BECAUSE CAPITAL SPENDING IMPROVED SERVICE MORE AND MORE SPENDING DECISIONS INVOLVE CONSIDERATIONS OF THIS SORT NOTES ROBERT MILLER A MACHINETOOL MARKETING CONSULTANT WHO RUNS HIS OWN FIRM ITMC IN CLEVELAND INDEED HE SAYS CORPORATE AMERICA CAN EXPECT TO SEE MORE PRODUCTION MANAGERS CALLING THEIR COLLEAGUES IN CUSTOMER SERVICE MARKETING ENGINEERING AND OTHER DEPARTMENTS TO DRUM UP GOOD ARGUMENTS FOR THEIR NEXT CAPITALSPENDING PROPOSALS 9402080097 940208 MARKETING & MEDIA MARKETSCAN BEAUTY AND HEALTHCARE BESTSELLERS BY KATHLEEN DEVENY BAKINGSODA TOOTHPASTES SHOWER GELS AND HOMEDIAGNOSTIC PRODUCTS CONTINUE TO TOP THE LIST OF FASTGROWING HEALTH AND BEAUTYCARE PRODUCTS TODAY NEW PRODUCTS BACKED BY HEFTY AD BUDGETS CONTRIBUTED TO THE GROWTH OF MANY BESTSELLERS IN THE FOURTH QUARTER QUARTERLY SALES OF BAKINGSODA TOOTHPASTES IN SUPERMARKETS AND DRUGSTORES GREW 80 FROM A YEAR EARLIER ACCORDING TO TOWNEOLLER & ASSOCIATES A UNIT OF INFORMATION RESOURCES INC THAT GROWTH LARGELY REFLECTS THE INTRODUCTION OF PROCTER & GAMBLE CO'S CREST WITH BAKING SODA AND UNILEVER GROUP'S MENTADENT NEW PRODUCTS SUCH AS NIVEA MADE BY THE US UNIT OF GERMANY'S BEIERSDORF AG ALSO SPURRED SALES OF SHOWER GELS OR LIQUID BATH SOAPS SALES IN THE CATEGORY INCREASED 47 FOR THE QUARTER AMERICANS' GROWING DESIRE TO TAKE MORE CONTROL OF THEIR OWN HEALTH CARE KEPT SALES OF SEVERAL HOMEDIAGNOSTIC PRODUCTS STRONG NEW TO THE LIST THIS QUARTER DIGITAL THERMOMETERS WHOSE SALES INCREASED 72 DRIVING THAT GROWTH WAS THE THERMOSCAN INSTANT THERMOMETER WHICH SELLS FOR ABOUT 100 INSERTED IN THE EAR THE GADGET MADE BY THERMOSCAN INC OF SAN DIEGO MEASURES THE EMISSION OF INFRARED RADIATION FROM THE EARDRUM AND CONVERTS IT INTO A CONVENTIONAL TEMPERATURE READING A COMPANY SPOKESMAN SAID THE PRODUCT WHICH GIVES A READING IN ONE SECOND IS POPULAR AMONG PARENTS OF SMALL CHILDREN EACH QUARTER TOWNEOLLER COMPILES LISTS OF THE FASTESTGROWING AND FASTESTDECLINING HEALTH AND BEAUTYCARE PRODUCTS EXCLUSIVELY FOR THE WALL STREET JOURNAL THE ROSTERS ARE BASED ON PRODUCT SHIPMENTS RECEIVED BY 30400 SUPERMARKETS AND 12900 DRUGSTORES TOWNEOLLER RANKS 350 PRODUCT CATEGORIES EACH WITH QUARTERLY SALES OF AT LEAST 6 MILLION BY PERCENTAGE CHANGE FROM THE YEAREARLIER PERIOD OVERTHECOUNTER CONTRACEPTIVES AIMED AT WOMEN INCLUDING CONTRACEPTIVE SPONGES AND SPERMICIDES WERE AMONG THE FASTESTDECLINING PRODUCTS QUARTERLY SALES OF CONTRACEPTIVES FELL 20 AS WOMEN CONTINUE TO SWITCH TO PRESCRIPTION METHODS OF BIRTH CONTROL SALES OF OVERTHECOUNTER YEASTINFECTION TREAMENTS DECLINED 11 AS GROWING NUMBERS OF WOMEN FIND THEM INCONVENIENT TO USE MEANWHILE THE RISE OF THE NATURAL LOOK HURT SALES OF HAIRSTYLING SPRITZES AND NAIL POLISHES WHICH FELL 18 AND 16 RESPECTIVELY 9402080096 940208 NOVACARE REHABCLINICS MERGER KING OF PRUSSIA PA NOVACARE INC SAID IT COMPLETED ITS MERGER WITH REHABCLINICS INC FRIDAY AFTER STOCKHOLDERS OF BOTH REHABILITATION SERVICES COMPANIES APPROVED A STOCK SWAP VALUED AT ABOUT 200 MILLION EACH SHARE OUTSTANDING OF REHABCLINICS COMMON STOCK WAS EXCHANGED FOR 16 SHARES OF NOVACARE COMMON STOCK NOVACARE WHICH HAD ABOUT 50 MILLION SHARES OUTSTANDING ALSO ISSUED ABOUT 14 MILLION NEW SHARES THE NEW COMPANY WILL USE THE NOVACARE NAME 9402080095 940208 SMALL STOCK FOCUS PRICES BOUNCE BACK FROM EARLY SLIDE AS BARGAIN HUNTERS MOVE INTO MARKET BY WARREN GETLER AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BARGAINHUNTING BY SMALLCOMPANY STOCK INVESTORS REVERSED AN EARLY MORNING SELLOFF GIVING THE SMALLCAPITALIZATION MARKET A MARGINAL BOUNCE AFTER FRIDAY'S SHARP 221 DECLINE IN THE RUSSELL 2000 INDEX THE RUSSELL WHICH TRACKS THE PERFORMANCE OF SMALLCAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES CLOSED UP 001 POINT VIRTUALLY UNCHANGED FROM FRIDAY AT 26168 AFTER FALLING NEARLY THREE POINTS IN EARLY TRADING YESTERDAY ON FRIDAY NEWS THAT THE FEDERAL RESERVE WAS RAISING SHORTTERM INTEREST RATES SENT THE RUSSELL INDEX DOWN 590 POINTS WHILE THE NASDAQ COMPOSITE INDEX DROPPED 2051 DESPITE NERVOUSNESS ABOUT THE POTENTIAL FOR FURTHER RATE INCREASES BY THE FED ANALYSTS VOICED CAUTIOUS OPTIMISM ABOUT THE STRENGTH OF THE SMALLCAP MARKET PEOPLE ARE LOOKING FOR BARGAINS BUT THERE'S STILL A MODEST UNDERCURRENT OF UNCERTAINTY SAID WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEX BROWN & SONS IN NEW YORK PEOPLE DON'T KNOW WHETHER WHAT HAPPENED WITH THE FED ON FRIDAY WAS AN ABERRATION OR THE BEGINNING OF A PROTRACTED RISE IN INTEREST RATES CHRIS MCLELLAN PARTNERINCHARGE OF TRADING AT ROBERTSON STEPHENS & CO IN SAN FRANCISCO SAID THERE WAS PAIN EVIDENT IN THE MARKET BUT THAT SEVERAL SECTORS INCLUDING SOFTWAREORIENTED TECHNOLOGY STOCKS LOOKED STRONG THERE'S BEEN SOME REAL DAMAGE DONE AS A RESULT OF FRIDAY'S FED MOVE MR MCLELLAN SAID IT WILL TAKE MORE THAN ONE DAY'S REACTION AND BOUNCE TO CONVINCE PEOPLE THAT THE FED TIGHTENING IS NOT SOMEWHAT OMINOUS LONG TERM IN COMPANY NEWS SHARES IN MANHASSET NYBASED SPECTRUM INFORMATION PLUNGED 60 ON MASSIVE VOLUME NEWS THAT FORMER APPLE COMPUTER EXECUTIVE JOHN SCULLEY WAS RESIGNING AFTER A BRIEF STINT AT THE HELM OF THE TINY WIRELESS COMPANY AND THAT SPECTRUM WAS RESTATING ITS FISCAL FIRSTHALF 1994 EARNINGS SENT THE STOCK DOWN 3 5/16 TO 2 1/4 THE DECLINE CAME ON EXTRAORDINARILY HEAVY VOLUME OF 354 MILLION SHARES THE LARGEST EVER FOR A SINGLE NASDAQ STOCK AND ABOUT HALF OF THE ROUGHLY 72 MILLION SPECTRUM SHARES OUTSTANDING IRONICALLY THE PREVIOUS VOLUME RECORD OF 345 MILLION SHARES ALSO HAD BEEN SET BY SPECTRUM ON MAY 20 THE DAY AMERICAN TELEPHONE & TELEGRAPH CO REBUFFED CLAIMS BY SPECTRUM PRESIDENT PETER CASERTA ABOUT THE VALUE OF SPECTRUM'S PATENTLICENSING DEAL WITH AT&T MR SCULLEY SAID HE WAS RESIGNING BECAUSE HE FELT HE WAS DELIBERATELY MISLED BY MR CASERTA WHEN INDUCED TO JOIN THE COMPANY IN OCTOBER IN A STATEMENT EARLY YESTERDAY MR SCULLEY CITED RECENT EVENTS WHICH HAVE MADE IT CLEAR THAT ASPECTS OF SPECTRUM'S BUSINESS ARE NOT WHAT THEY WERE REPRESENTED TO BE WHEN I JOINED THE COMPANY MR SCULLEY SAID HE WASN'T INFORMED OF ACCOUNTING PROBLEMS AND AN IMPENDING SECURITIES AND EXCHANGE COMMISSION PROBE HE SAID SPECTRUM'S AUDITORS KPMG PEAT MARWICK INFORMED HIM LAST WEEK THAT THE AUDITORS COULD NOT SUPPORT THE CURRENT METHOD OF ACCOUNTING USED BY SPECTRUM WITH RESPECT TO REVENUE RECOGNITION HE SAID HE DIRECTED SPECTRUM TO RESTATE ITS FINANCIAL STATEMENTS IN ACCORDANCE WITH KPMG'S RECOMMENDATIONS SPECTRUM IN A STATEMENT LATE YESTERDAY REJECTED MR SCULLEY'S CLAIM THAT HE WAS NOT AWARE OF THE COMPANY'S OPERATIONS WHEN HE JOINED PRIOR TO AND DURING HIS TERM AT SPECTRUM MR SCULLEY WAS FULLY AWARE OF THE CIRCUMSTANCES THAT HE NOW CITES AS HIS REASONS FOR DEPARTING SPECTRUM SAID THE COMPANY ADDED THAT ITS MOST SIGNIFICANT ASSETS INCLUDING ITS VALUABLE PATENT PORTFOLIO AND RELATED LICENSING AGREEMENTS ARE NOT AFFECTED BY MR SCULLEY'S DEPARTURE ELSEWHERE IN THE TECHNOLOGY GROUP LASERMASTER TECHNOLOGIES EDEN PRAIRIE MINN CLIMBED 2 TO 15 TECNOMATIX TECHNOLOGIES AN ISRAELI SOFTWARE DEVELOPER ADDED 1 TO 10 AND FOURTH SHIFT A MINNEAPOLIS SOFTWARE CONCERN GAINED 1 TO 10 1/4 AMERICA ONLINE STOCK SURGED 5 3/4 OR 89 TO CLOSE AT 70 1/2 ON ALMOST TRIPLE ITS USUAL VOLUME SAPIENS INTERNATIONAL OF CURACAO NETHERLANDS ANTILLES ROSE 1 3/4 TO 19 ON A POSITIVE ARTICLE IN THIS WEEK'S ISSUE OF BARRON'S MAGAZINE PLATINUM SOFTWARE JUMPED 1 3/8 TO 14 1/2 THE IRVINE CALIF COMPANY SAID IT GOT AN ORDER FOR ITS SEQUEL TO PLATINUM CLIENT/SERVER SOFTWARE AND THE LOCAL AREA NETWORKBASED PLATINUM SERIES FROM HUNTINGTON INTERNATIONAL HOLDINGS PLC THE EXACT AMOUNT OF THE ORDER WAS NOT DISCLOSED BUT A PLATINUM SPOKESMAN CALLED IT A MULTIMILLIONDOLLAR CONTRACT ANOTHER HIGHFLYING GROUP WAS THE HEALTHCARE SECTOR LASERSCOPE A SAN JOSE CALIF DESIGNER OF SURGICAL LASER SYSTEMS ROSE 1/4 TO 6 1/8 WHILE ATRIX LABORATORIES A FORT COLLINS COLO DRUG DELIVERY SYSTEM DEVELOPER ADDED 5/8 TO 7 1/4 COASTCAST RANCHO DOMINGUEZ CALIF ROSE 3 3/4 TO 30 ON THE NEW YORK STOCK EXCHANGE GOLFER JOHNNY MILLER A SPOKESMAN FOR CALLAWAY GOLF WON THE AT&T PEBBLE BEACH NATIONAL PROAM TOURNAMENT SUNDAY USING CALLAWAY CLUBS COASTCAST SUPPLIES CLUB HEADS TO CALLAWAY CALLAWAY GOLF CLOSED UP 4 1/4 AT 68 3/4 ON THE BIG BOARD 9402080094 940208 CREDIT RATINGS RITE AID CORP CAMP HILL PA STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ABOUT 886 MILLION OF THIS DRUG RETAILER'S DEBT EXPRESSING PARTICULAR CONCERN WITH THE COMPANY'S WILLINGNESS TO INCREASE LEVERAGE S&P LOWERED SENIOR UNSECURED DEBT TO SINGLEAMINUS FROM SINGLEA THE COMPANY WAS PLACED ON S&P'S CREDITWATCH LIST JAN 7 S&P SAID RITE AID'S INCREASED FINANCIAL RISK IS PARTIALLY OFFSET BY EXCEPTIONAL OPERATING MARGINS AND STRONG MARKET POSITION IN AN INDUSTRY WITH FAVORABLE GROWTH CHARACTERISTICS THE COMPANY RECENTLY ANNOUNCED PLANS TO REPURCHASE 22 MILLION COMMON SHARES SELL NONCORE OPERATIONS AND CLOSE 200 UNDERPERFORMING DRUGSTORES 9402080093 940208 THE CLINTON BUDGET THE IMPACT ON KEY AGENCIES PRESIDENT CLINTON'S 15 TRILLION BUDGET FOR FISCAL 1995 IS AN EXERCISE IN LIMITS AND RESTRAINT IT PRESERVES THE STRICT SPENDING LIMITS IMPOSED IN LAST YEAR'S DEFICITREDUCTION LAW WHILE SHRINKING THE DEFICIT FOR THE THIRD YEAR IN A ROW TO 1651 BILLION THIS YEAR IT WOULD GIVE SOME 115 SPENDING PROGRAMS THE AX AND SQUEEZE OUT ABOUT 118000 FEDERAL JOBS IN PURSUIT OF SOME ADMINISTRATION INVESTMENTS NATIONAL HEALTH CARE WORKER TRAINING AND TAX BREAKS FOR INNERCITY EMPOWERMENT ZONES THE BUDGET WOULD CUT OTHER PROGRAMS DEAR TO THE HEARTS OF MOST DEMOCRATS SUBSIDIES FOR PUBLIC HOUSING CROP INSURANCE AND OTHERS WERE SLASHED TO MAKE WAY FOR NEW PRIORITIES THE PLAN WOULDN'T RAISE TAXES BEYOND LAST YEAR'S INCREASES ASIDE FROM A CIGARETTE TAX TO PAY FOR HEALTH CARE IT FORCED THE PRESIDENT AND CONGRESS TO MAKE FUNDAMENTAL PRIORITY JUDGMENTS SAID LEON PANETTA DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET I HONESTLY BELIEVE THAT THAT'S A VERY HEALTHY DEBATE HERE IS A CLOSER LOOK AT SOME MAJOR PROVISIONS OF THE BUDGET NUTRITION SPENDING WOULD RISE WHILE OUTLAYS FOR MANY FARMSUBSIDY SOILCONSERVATION AND OTHER PROGRAMS WOULD BE ELIMINATED OR CUT THE BUDGET WOULD BOOST SPENDING FOR LOWINCOME PREGNANT WOMEN INFANTS AND CHILDREN BY 10 TO 354 BILLION IN FISCAL 1995 AN AVERAGE OF 72 MILLION MONTHLY RECIPIENTS WOULD RECEIVE BENEFITS UNDER THE PROGRAM UP FROM 65 MILLION CURRENTLY CHILDNUTRITION OUTLAYS WOULD RISE MODESTLY EMPHASIS WOULD BE PLACED ON EDUCATING STUDENTS AND TRAINING FOODSERVICE WORKERS ABOUT THE IMPORTANCE OF BETTER SCHOOL MEALS THE FOOD SAFETY AND INSPECTION SERVICE WOULD RECEIVE FUNDS TO HIRE 200 ADDITIONAL MEAT AND POULTRY INSPECTORS AND TO STEP UP RESEARCH THE ADMINISTRATION BUDGET ALSO ASSUMES SAVING 535 MILLION BY PHASING OUT SUBSIDIES FOR HONEY WOOL AND MOHAIR CONGRESS ALREADY HAS ORDERED ENDING THE LATTER TWO SUBSIDIES AND IS CONSIDERING DROPPING HONEY SUBSIDIES OUTLAYS FOR THE AGRICULTURE DEPARTMENT'S BIG CROPSUBSIDY PROGRAM WOULD FALL 30 TO 85 BILLION A PROJECTION BASED ON EXPECTED LOWER HARVESTS DURING CALENDAR 1994 FARMERS WOULD HAVE TO ENROLL IN THE FEDERAL CROPINSURANCE PROGRAM TO BE ELIGIBLE FOR CROP SUBSIDIES AND DISASTER AID SOIL CONSERVATION SERVICE OUTLAYS FOR WATERSHED AND FLOODPREVENTION PROGRAMS WOULD BE SLASHED 65 TO 105 MILLION WITH A 91 REDUCTION IN BUDGET AUTHORITY PRESAGING FURTHER SPENDING CUTS LATER NO SWEEPING NEW ENVIRONMENTAL PROPOSALS ADORN THE BUDGET BUT THE PLAN DOES CALL FOR INCREASED SPENDING IN A FEW TARGETED AREAS HIGHPRIORITY ITEMS THAT WOULD RECEIVE MORE FUNDS INCLUDE THE WHITE HOUSE'S PLAN TO FIGHT GLOBAL WARMING THE 1990 CLEAN AIR ACT ENERGYCONSERVATION PROGRAMS EFFORTS TO PROMOTE SOLAR AND RENEWABLE ENERGY WETLANDSRESTORATION AND PESTICIDEREDUCTION INITIATIVES AND SEVERAL EXISTING ECOSYSTEMRESTORATION PLANS THE MOST SIGNIFICANT OF WHICH INVOLVES THE FLORIDA EVERGLADES IN ADDITION THE ADMINISTRATION PROPOSES NEW SPENDING FOR A VARIETY OF INTERNATIONAL PROGRAMS THAT FOLLOW UP ON THE 1992 EARTH SUMMIT LAST YEAR THE ENVIRONMENTAL PROTECTION AGENCY'S BUDGET WAS WHACKED BY MORE THAN 900 MILLION WHEN A PLAN TO ACCELERATE SPENDING FOR SEWAGE TREATMENT WENT DOWN WITH THE PRESIDENT'S STIMULUS PACKAGE THIS YEAR THE AGENCY'S OUTLAYS WILL RISE TO 67 BILLION FROM 65 BILLION WHILE THE RATE OF INCREASE WON'T SIGNIFICANTLY EXCEED INFLATION THE EPA SAID A LARGE INCREASE IN BUDGET AUTHORITY WOULD MEAN BIGGER OUTLAY INCREASES IN FUTURE YEARS IT ALSO SAID THAT BY CONCENTRATING SPENDING ON OPERATING PROGRAMS THIS YEAR IT WILL BE ABLE TO HIRE MORE THAN 700 NEW EMPLOYEES AND TO BOOST ITS REGULATORY AND ENFORCEMENT EFFORTS WITH THE CHANGE THE AGENCY WILL BE ABLE TO ENFORCE THE LAWS MORE FULLY SAYS MARC SMOLONSKY A BUDGET ANALYST FOR THE NONPROFIT ENVIRONMENTAL WORKING GROUP INTERIOR DEPARTMENT OUTLAYS WOULD HOLD STEADY FROM LAST YEAR AT 72 BILLION AT THE ENERGY DEPARTMENT THEY WOULD DROP NEARLY 9 TO 157 BILLION MOST OF THE CUTS WOULD BE IN DEFENSERELATED PROGRAMS THE ADMINISTRATION PROPOSES NEW SPENDING TO PROMOTE ECONOMIC DEVELOPMENT AND TO HELP LOWINCOME PEOPLE IN DEPRESSED AREAS WHILE IT WOULD CUT FUNDS FOR PUBLIC HOUSING THE BUDGET FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROPOSES A PACKAGE OF TAX INCENTIVES AND WAGE CREDITS FOR EMPLOYERS AS WELL AS SOCIAL SERVICE GRANTS FOR LOCAL GOVERNMENTS IN SOCALLED EMPOWERMENT ZONES SIX LARGE CITIES AND ONE MIDSIZED CITY WOULD QUALIFY FOR THE AID SMALLER GRANTS WILL BE DIVIDED AMONG 95 URBAN AND RURAL ENTERPRISE ZONES THE PROPOSED 1995 BUDGET WOULD OFFER 500 MILLION IN GRANTS TO FINANCE CAPITAL PROJECTS INCLUDING HOUSING IN ZONES THAT WILL BE SELECTED BY THE ADMINISTRATION IN THE LATE SUMMER OR EARLY FALL FUNDS FOR RURAL ENTERPRISE ZONES WOULD COME FROM THE AGRICULTURE DEPARTMENT THE AMOUNT HUD WOULD BE AUTHORIZED TO SPEND ON VARIOUS PUBLIC ELDERLY AND LOWINCOME HOUSING WOULD DROP STEEPLY TO 47 BILLION FROM 775 BILLION IN 1994 ONETHIRD OF THE REDUCTION WOULD INVOLVE GRANTS FOR ELDERLY HOUSING BECAUSE OF THE LONG LEAD TIME IN HOUSING PROGRAMS THE FULL EFFECTS OF THOSE CUTS PROBABLY WOULDN'T BE FELT FOR THREE TO FIVE YEARS BUT THE PROPOSED BUDGET WOULD REDUCE 1995 OUTLAYS FOR PUBLIC HOUSING DEVELOPMENT BY 23 MILLION TO AN ESTIMATED 529 MILLION OVERALL NEW AND PREVIOUSLY COMMITTED SPENDING WOULD RESULT IN TOTAL HUD OUTLAYS OF 295 BILLION AN INCREASE OF 2 BILLION FROM THE 1994 LEVEL STATE DEPARTMENT AND FOREIGNAID SPENDING WOULD DECLINE TO 208 BILLION FROM 218 BILLION AS THE ADMINISTRATION FOCUSES ON POSTCOLD WAR SPENDING ON BROAD CATEGORIES SUCH AS BUILDING DEMOCRACY INSTEAD OF EARMARKING FUNDS FOR SPECIFIC NATIONS THE GIANT EXCEPTION WOULD BE FUNDS FOR ISRAEL AND EGYPT WHICH WON'T BE TOUCHED MOST OTHER BILATERAL SECURITY ASSISTANCE WILL DECLINE ALTHOUGH THE BUDGET IS SHORT ON SPECIFICS IN ITS PLACE THE ADMINISTRATION PROPOSES BROAD SPENDING CATEGORIES SUCH AS PROMOTING US PROSPERITY AND PROMOTING PEACE THAT LINK DIPLOMACY AND ECONOMICS AND TRADE THE BUDGET SAYS AIDING RUSSIA AND THE FORMER SOVIET REPUBLICS REMAINS THE CLEAREST LINK BETWEEN THE EXPANSION OF DEMOCRACY AND FREE MARKETS AND THE US NATIONAL INTEREST OUTLAYS FOR THIS CATEGORY WOULD RISE TO 887 MILLION FROM 635 MILLION THIS FISCAL YEAR SPENDING FOR MULTINATIONAL DEVELOPMENT BANKS WOULD RISE TO 17 BILLION FROM 14 BILLION THE ADMINISTRATION'S EFFORT TO GET AWAY FROM COUNTRYSPECIFIC AID IS BOUND TO RANKLE SOME MEMBERS OF CONGRESS WHO LOOK OUT FOR SPECIAL INTERESTS THE WHITE HOUSE WANTS FLEXIBILITY TO SPEND THIS MONEY WHEN AND WHERE IT WISHES THEIR NOTION IS TRUST US WE'LL SPEND IT THE WAY YOU WANT' SAYS A CONGRESSIONAL AIDE HE PREDICTS THAT THE PRESIDENT'S IDEA MAY SUCCEED IN THE HOUSE BECAUSE OF SUPPORT FROM PROISRAEL FORCES BUT THAT IT COULD FACE SOME DIFFICULTIES IN THE SENATE THE ADMINISTRATION FIGURES ITS HEALTHCARE PLAN IF IT PASSES CONGRESS THIS YEAR WOULD REQUIRE 35 BILLION IN ADDITIONAL FEDERAL SPENDING IN FISCAL 1995 THE FIRST YEAR OF ITS PHASEIN SCHEDULE AT THE SAME TIME THE GOVERNMENT WOULD BE SAVING MONEY ON MEDICARE AND MEDICAID AND WOULDN'T BE SPENDING ALL THAT IT TOOK IN FROM A HIGHER TOBACCO TAX KNOCKING 11 BILLION OFF THE DEFICIT AS THE PROGRAM IS PHASED IN IT WOULD WIDEN THE DEFICIT IN FISCAL 1997 AND 1998 BEFORE IT RESUMED NARROWING IT IN 1999 FUNDING ON MOST PROGRAMS UNDER THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WAS FROZEN TO FOCUS SPENDING INCREASES ON SOME SPECIFIC PROGRAMS OUTLAYS ON THE NATIONAL INSTITUTES OF HEALTH THE GOVERNMENT'S MAIN SOURCE OF MEDICAL RESEARCH GRANTS WOULD RISE 74 TO 1102 BILLION FROM 1026 BILLION THIS YEAR FUNDING WOULD RISE 28 FOR BREAST CANCER RESEARCH AND 6 FOR AIDS RESEARCH SPENDING FOR THE FEDERAL GOVERNMENT'S PRINCIPAL AIDS TREATMENT PROGRAM THE RYAN WHITE COMMUNITY GRANTS TO COUNSEL AND CARE FOR PEOPLE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS WOULD GROW 2294 TO 627 MILLION FEDERAL SPENDING ON CHILDHOOD IMMUNIZATIONS ONE OF THE PRESIDENT AND HILLARY RODHAM CLINTON'S CHIEF INTERESTS WOULD MORE THAN DOUBLE TO 901 MILLION FROM 446 MILLION THIS YEAR THAT INCLUDES 424 MILLION FOR THE ADMINISTRATION'S NEW FEDERAL VACCINE ENTITLEMENT PROGRAM WHICH IS SCHEDULED TO BEGIN IN OCTOBER THROUGH THE PROGRAM OFFICIALS HOPE TO RAISE CHILD IMMUNIZATION RATES TO 90 BY 2000 THE ADMINISTRATION IS ALSO PROPOSING MORE MONEY FOR DRUGTREATMENT PROGRAMS INCLUDING TARGETING MORE PREVENTION EFFORTS TOWARD PREGNANT WOMEN AND EXPANDING TREATMENT FOR HARDCORE DRUG USERS OVERALL SPENDING ON THE DEPARTMENT'S DRUGTREATMENT PROGRAMS WOULD GROW 2244 TO 862 MILLION FROM 704 MILLION SCIENCE SPENDING WOULD GROW SLIGHTLY AS ONE OF MR CLINTON'S FAVORED INVESTMENT AREAS BUT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS FEELING THE STING OF WHAT AGENCY OFFICIALS CALL SEVERE CUTS TO ITS BUDGET FOR MANNED SPACE FLIGHTS NASA WOULD BE HELD TO 1446 BILLION IN FISCAL 1995 ONLY 250 MILLION MORE THAN THIS YEAR EVEN AS IT FACES MOUNTING COSTS TO BUILD AN INTERNATIONAL SPACE STATION AND COOPERATE WITH NEW RUSSIAN PARTNERS WHILE FREEZING SPACESTATION SPENDING THE PROPOSAL WOULD CUT ALMOST 6 IN SPENDING AUTHORITY FROM SHUTTLE OPERATIONS IN UNMANNED SPACE FLIGHTS NASA ANNOUNCED IT WILL TRY TO RECOVER FROM THE 1 BILLION LOSS OF ITS MARS OBSERVER SPACECRAFT LAST SUMMER WITH A MARS SURVEYOR PROGRAM FEATURING SMALLER CHEAPER ORBITERS AND LANDERS THAT WOULD BE SENT TO MARS BEGINNING IN NOVEMBER 1996 TOTAL RESEARCH SPENDING WOULD RISE 3 THE CLINTON PLAN WOULD DEDICATE 436 OF 70 BILLION IN FEDERAL RESEARCH AND DEVELOPMENT SPENDING NEXT YEAR FOR CIVILIAN PROJECTS COMPARED WITH 427 THIS FISCAL YEAR WITH THE REST FOR DEFENSE PROJECTS THE NATIONAL SCIENCE FOUNDATION A BIG BANKROLLER OF UNIVERSITY RESEARCH WAS A WINNER FOR A SECOND YEAR WITH A PROJECTED INCREASE OF 6 BUT UNIVERSITIES AND NONPROFIT INSTITUTIONS THAT GET FEDERAL RESEARCH GRANTS COULD BE IN FOR A ONEYEAR FREEZE ON REIMBURSEMENT OF THEIR OVERHEAD COSTS WINNERS SCORING BUDGET INCREASES INCLUDE GLOBALCLIMATE RESEARCH A FAVORITE OF VICE PRESIDENT AL GORE THE HUMAN GENOME PROJECT TO MAP ALL THE GENES IN THE HUMAN BODY THE ADVANCED NEUTRON SOURCE RESEARCH REACTOR PRINCETON'S TOKAMAK PHYSICS EXPERIMENT THAT LOOKS AT FUSION ENERGY AND THE BMESON RESEARCH FACILITY AT STANFORD UNIVERSITY THAT WOULD EXPLORE THE NATURE OF MATTER IN A MOVE GREETED WITH DELIGHT BY ANTINUCLEAR ACTIVISTS THE ENERGY DEPARTMENT SAID IT WOULD PULL THE PLUG ON THE ADVANCED LIQUID METAL REACTOR PRESIDENT CLINTON WANTS FUNDS TO HELP LOCAL GOVERNMENTS HIRE 50000 ADDITIONAL POLICE OFFICERS INCREASE PRISON CONSTRUCTION AND PLACE A GREATER EMPHASIS ON DRUGABUSE TREATMENT AND PREVENTION THE JUSTICE DEPARTMENT SAID THE 50000 OFFICERS WOULD BE A BIG STEP TOWARD THE ADMINISTRATION'S GOAL OF PLACING 100000 POLICE OFFICERS ON THE BEAT MANY OF THE OFFICERS WOULDN'T APPEAR ON THE STREETS IMMEDIATELY HOWEVER THE ADMINISTRATION FIGURES THAT IN FISCAL 1995 IT WILL BE ABLE TO SPEND ONLY 345 MILLION OF THE 17 BILLION AUTHORIZED FOR THE 50000 OFFICERS ANOTHER UNKNOWN STATE AND LOCAL GOVERNMENTS WOULD HAVE TO PROVIDE 250 FOR EVERY 1000 THEY GET IN FEDERAL MONEY TO HIRE POLICE ABOUT 589 MILLION WOULD BE SPENT NEXT FISCAL YEAR ON PRISON CONSTRUCTION PRISON OPERATING FUNDS WOULD TOTAL 23 BILLION ATTORNEY GENERAL JANET RENO SAID THE BUDGET WOULD ACTIVATE ALMOST 9700 NEW PRISON BEDS SPENDING TO FIGHT DRUG ABUSE WOULD INCREASE 9 FROM THE CURRENT FISCAL YEAR WHILE FUNDS FOR DRUG LAW ENFORCEMENT WOULD GROW 3 THE OFFICE OF NATIONAL DRUG CONTROL POLICY OFTEN CALLED THE DRUG CZAR'S OFFICE SAID SPENDING ON PREVENTION AND TREATMENT WOULD JUMP 18 AS A RESULT 59 OF THE ANTIDRUG BUDGET WOULD BE AIMED AT REDUCING SUPPLY THROUGH ENFORCEMENT AND 41 AT REDUCING DEMAND THROUGH PREVENTION AND TREATMENT THIS WOULD MARK THE FIRST TIME THE ENFORCEMENT ALLOCATION DROPPED BELOW 60 OF THE TOTAL DRUG TREATMENT ADVOCATES HAVE LONG ARGUED THAT MUCH GREATER EMPHASIS SHOULD BE PLACED ON DEMAND REDUCTION THE ADMINISTRATION RECOMMENDS A 93 INCREASE TO 281 BILLION IN SPENDING FOR THE FEDERAL JUDICIARY MOST OF THE ADDITIONAL MONEY WOULD GO FOR ADDITIONAL COURTHOUSE SECURITY AND ADMINISTRATIVE STAFF THE EDUCATION DEPARTMENT WOULD RECEIVE A 7 INCREASE IN DISCRETIONARY SPENDING AUTHORITY ONE OF THE BIGGEST BOOSTS OF ANY CABINET AGENCY BUT SOME PROGRAMS WOULD RECEIVE MONEY THAT WON'T BE SPENT FOR YEARS TO COME DISCRETIONARY EDUCATION OUTLAYS WOULD DECREASE TO 24 BILLION IN FISCAL 1995 FROM 245 BILLION THIS FISCAL YEAR THE ADMINISTRATION PROPOSED A 21 INCREASE IN FUNDS FOR HEAD START ALLOWING THE PROGRAM TO OFFER 100000 ADDITIONAL ALLDAY CLASSES IN 1995 AND 290000 MORE BY 1999 CURRENTLY MOST HEAD START PROGRAMS OFFER JUST HALFDAY CLASSES THE BUSH ADMINISTRATION HAD SOUGHT TO SERVE MORE CHILDREN BUT HADN'T FAVORED ALLDAY CLASSES ONEFOURTH OF ALL NEW BUDGET MONEY PROPOSED IN THE CLINTON BUDGET WOULD BE SET ASIDE FOR SUCH QUALITY IMPROVEMENTS AS UPGRADING SCHOOL BUILDINGS BUYING NEW BUSES AND RAISING STAFF SALARIES THE ADMINISTRATION ALSO PROPOSED A 10 INCREASE IN ITS PROGRAM TO HELP DISADVANTAGED SCHOOL CHILDREN THE EDUCATION DEPARTMENT WANTS TO CONCENTRATE THE PROPOSED 76 BILLION IN SOCALLED TITLE 1 FUNDS ON THE POOREST SCHOOL DISTRICTS BUT ITS NEW SPENDING FORMULA ALREADY HAS RUN INTO TROUBLE ON CAPITOL HILL IT ALSO WANTS TO INCREASE MONEY SPENT ON TEACHER TRAINING BY 22 GOALS 2000 THE ADMINISTRATION'S MAJOR EDUCATIONREFORM PLAN WOULD GET 700 MILLION MUCH OF WHICH WOULD BE GRANTS TO SCHOOLS AND COMMUNITIES FOR EDUCATION REFORM THE PROGRAM TO CATCH ABUSE IN THE STUDENT LOAN PROGRAM MEANWHILE WOULD GET A 65 INCREASE THE PELL GRANT PROGRAM WOULD BE EXPANDED TO REACH 41 MILLION COLLEGE STUDENTS WITH THE MAXIMUM AWARD RAISED 100 TO 2400 THE BUDGET WOULD CUT OFF FUNDS FOR 33 EDUCATION PROGRAMS MOST OF WHICH WERE SMALL PROGRAMS RECOMMENDED FOR ELIMINATION BY THE NATIONAL PERFORMANCE REVIEW LAST YEAR HIGHWAYS REMAIN A BIG PRIORITY FOR PRESIDENT CLINTON EVEN IF HIS RHETORIC HAS TURNED TO OTHER AREAS FEDERAL HIGHWAY SPENDING WOULD INCREASE 4 TO 186 BILLION FULLY FUNDING THE 1991 HIGHWAY BILL FOR THE FIRST TIME SINCE ITS PASSAGE THE ADMINISTRATION IS PROPOSING A BIG INCREASE IN RESEARCH SPENDING FOR INTELLIGENTVEHICLE SYSTEMS WHICH INCLUDE NAVIGATIONAL AIDS IN CARS FOR MASS TRANSIT THE PICTURE IS LESS ROSY WHILE CAPITAL SPENDING FOR NEW BUSES TRAINS AND OTHER TRANSIT EQUIPMENT WOULD INCREASE AT A GREATER RATE THAN FOR HIGHWAYS OPERATING SUBSIDIES FOR LOCAL TRANSIT SYSTEMS WOULD DROP 121 MILLION OR 16 IF YOU CAN'T OPERATE IT YOU CAN'T BUY IT SAID ROD DIRIDON CHAIRMAN OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION ADMINISTRATION OFFICIALS SAY REPLACING OLD EQUIPMENT WILL ALLOW TRANSIT SYSTEMS TO REDUCE MAINTENANCE COSTS THE BUDGET WOULD PROVIDE A 1 BILLION SUBSIDY PROGRAM FOR DOMESTIC SHIPYARDS AND OWNERS OF 52 AMERICANFLAG SHIPS BUT THIS MARITIMEREFORM PROGRAM WOULD BE FUNDED BY INCREASED TONNAGE FEES ON FOREIGN AND DOMESTIC SHIPS THE BUDGET ALSO WOULD INCREASE AMTRAK'S FUNDING 153 BUT PROVIDE LESS MONEY FOR HIGHSPEED RAIL RESEARCH THAN ADVOCATES INCLUDING TRANSPORTATION SECRETARY FEDERICO PENA WANTED THE BUDGET WOULD ELIMINATE 21YEAROLD SUBSIDIES TO SHORTHAUL RAILROADS AND SCALE BACK SUBSIDIES THAT SUPPORT AIRLINE SERVICE TO SMALL COMMUNITIES THE ADMINISTRATION ALSO WANTS TO SCRAP A 32 MILLION BOATINGSAFETY PROGRAM 9402080092 940208 CORPORATE FOCUS PANHANDLE EASTERN PUMPS BULLISH COURSE IN NATURAL GAS PIPELINE FIRM TO LIFT CAPITAL SPENDING 42 BETTING ON NORTHEAST MARKET BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DENNIS HENDRIX WATCHED THE VALUE OF HIS COMPANY'S STOCK SLIDE 25 LAST FALL NEVERTHELESS THE CHAIRMAN AND CHIEF EXECUTIVE OF PANHANDLE EASTERN CORP HAS JUST AGREED TO CONTINUE BEING PAID ENTIRELY IN THE NATURALGAS COMPANY'S STOCK MR HENDRIX IS A LONELY BULL IN THE STALLED US NATURALGAS MARKET DESPITE SLUGGISH DEMAND WHICH GREW JUST 3 LAST YEAR HE SAYS HE'LL BOOST CAPITAL SPENDING BY 42 THIS YEAR TO EXPAND THE COMPANY'S 27000MILE PIPELINE ALREADY THE COUNTRY'S SECONDLONGEST AFTER ENRON CORP'S AND HIS AMBITIOUS EXPANSION PLANS FOCUS LARGELY ON THE NORTHEAST WHERE DISTRIBUTORS IN THE RIVAL FUELOIL BUSINESS HAVE LONG DOMINATED THE HOMEHEATING MARKET MR HENDRIX DEMANDS THE SAME OPTIMISM FROM HIS TOP LIEUTENANTS WHEN HE PROMOTED PAUL ANDERSON TO PRESIDENT FROM EXECUTIVE VICE PRESIDENT LAST FALL HE SAYS HE OFFERED HIS NO 2 EXECUTIVE NO RAISE JUST MORE STOCK OPTIONS MR ANDERSON ALREADY RECEIVED A SIGNIFICANT SALARY BUT MR HENDRIX IS PAID 25000 COMMON SHARES PER QUARTER NO SEVERANCE NO GOLDEN PARACHUTE AND NO RETIREMENT PLAN NO MATTER BECAUSE THE STOCK DESPITE ITS RECENT SLIDE HAS MORE THAN DOUBLED SINCE NOVEMBER 1990 WHEN MR HENDRIX TOOK OVER SAYS KEVIN MURPHY AN ASSOCIATE PROFESSOR AT THE HARVARD BUSINESS SCHOOL WHO STUDIES EXECUTIVE COMPENSATION I HAVE ABSOLUTELY NO PROBLEMS WITH HIM MAKING A MINT WHEN THE STOCK PERFORMS SO WELL MR HENDRIX CURRENTLY OWNS 430000 SHARES WITH AN INDICATED VALUE OF 108 MILLION AT THE RECENT TRADING LEVEL OF ABOUT 25 HIS STAKE IS LESS THAN 1 OF THE COMPANY'S 1202 MILLION OUTSTANDING SHARES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 24375 DOWN 375 CENTS SAYS THE 53YEAROLD MR HENDRIX IT KEEPS ME VERY FOCUSED ON THE MARKET VALUE OF THE COMPANY THIS IS THE SEASON WHEN PLENTY OF ATTENTION IS ALSO FOCUSED ON THE PERFORMANCE OF THE PIPELINES THEMSELVES IN THESE RECENT DAYS OF LINGERING SUBZERO COLD IN SOME OF HIS NORTHEASTERN MARKETS MR HENDRIX IS ECSTATIC OVER THE SUCCESSFUL OPERATION OF THE SYSTEM SOMETHING THAT HIS INDUSTRY HAS BEEN WAITING TO SEE PROVEN THE PIPELINE SYSTEM WORKS THERE ARE NO SHORTAGES WE CAN GET THE GAS TO THE PEOPLE HE SAYS DOUBTS ABOUT THE NATION'S BURGEONING GASPIPELINE SYSTEM HAD REMAINED AS IT EXPANDED OVER THE LAST DECADE WITHOUT BEING TESTED BY A LENGTHY AND WIDESPREAD COLD SPELL SUCH AS THE ONE THAT PARTS OF THE NATION HAVE ENDURED DURING THE LAST MONTH NOT THAT HE'S A BLIND OPTIMIST MR HENDRIX IS SUBDUED ABOUT PANHANDLE'S PROSPECTS FOR MAINTAINING THE FAST PACE OF THE TURNAROUND HE STARTED IN 1991 WHEN THE COMPANY POSTED NET INCOME OF 851 MILLION OR 86 CENTS A SHARE COMPARED WITH A NET LOSS IN 1990 OF 2182 MILLION OR 246 A SHARE PANHANDLE'S PROFIT MORE THAN DOUBLED IN 1992 TO 1871 MILLION AFTER NONRECURRING NET GAINS OF 577 MILLION LAST WEEK THE COMPANY REPORTED 1993 NET INCOME OF 1481 MILLION OR 129 A SHARE AFTER A CHARGE OF 602 MILLION THAT CHARGE WAS PARTIALLY OFFSET BY A GAIN OF 287 MILLION FROM A PROPOSED SETTLEMENT OF CERTAIN CUSTOMERS' COMPLAINTS OVER GASSUPPLY CONTRACTS AMONG OTHER THINGS WE CAN'T PRODUCE THE PERCENTAGE INCREASES IN NET INCOME THAT WE HAVE HAD IN RECENT YEARS HE SAYS HIS ANSWER TO THE EXPECTED SLOWDOWN IN EARNINGS GROWTH IS TO SHARPLY RAISE SPENDING ON PIPELINE EXPANSION WE FEEL GOOD ABOUT THE OUTLOOK ABOUT THE DEMAND FOR ELECTRICITY AND THE OPPORTUNITY FOR GAS SUPPLYING THE FUEL FOR THAT HE SAYS THUS HE'S ZEROING IN ON THE NORTHEAST MARKET WHERE FUEL OIL HAS A 60 SHARE OF THE HOMEHEATING BUSINESS THAT'S LIKELY TO INCREASE HE SAYS HE REASONS THAT BY 1995 FEDERAL CLEANAIR RULES MAY FORCE CONVERSION TO NATURAL GAS OF SOME OILFIRED AS WELL AS SOME COALFUELED ELECTRIC PLANTS ALTHOUGH MR HENDRIX YEARNS FOR A GROWING GAS MARKET HE DOESN'T BEAT THE INDUSTRY'S WELLWORN DRUM FOR HIGHER PRICES AT SOME POINT WE MAY BE ADVERSELY AFFECTED BY THE HIGHER PRICE OF GAS RELATIVE TO OTHER COMPETING FUELS HE SAYS PANHANDLE AND THE OTHER GAS PIPELINE COMPANIES NUDGED BY THE FEDERAL ENERGY REGULATORY COMMISSION HAVE GRADUALLY EXTRICATED THEMSELVES FROM THE RISKY BUSINESS OF BUYING AND THEN SELLING THE GAS THEY CARRY ON THEIR PIPELINES ALL OF THE GAS CURRENTLY BEING MOVED THROUGH PANHANDLE'S PIPELINES IS EITHER OWNED BY PRODUCERS OR SUCH CUSTOMERS AS UTILITIES FACTORIES OR OTHER COMMERCIAL USERS LESS THAN A DECADE AGO PANHANDLE ACTED AS A BUYER AND SELLER FOR NEARLY ALL THE GAS IT CARRIED IN OTHER WORDS PANHANDLE IS NOW SELLING RESERVED SPACE ON ITS PIPELINE WHICH IT CALLS CAPACITY TO UTILITIES AND OTHER CUSTOMERS THE WORLD IS AWASH IN GAS BUT NOT ALL OF IT IS IN THE RIGHT PLACE SAYS MR HENDRIX THUS MR HENDRIX SAYS HE PLANS TO RAISE PANHANDLE'S CAPITAL SPENDING IN 1994 BY 42 TO 425 MILLION MUCH OF THAT FOR EXPANSION IN THE COMPETITIVE NORTHEAST HE'S DOING SO EVEN THOUGH HE HAS PREVIOUSLY SAID THAT ONE OF HIS GOALS IS TO REDUCE PANHANDLE'S DEBT AS A PERCENTAGE OF CAPITAL BELOW 40 IT IS CURRENTLY 46 DESPITE THE DEBT LOAD MR HENDRIX HAS MADE A BELIEVER OUT OF WALL STREET SINCE HE WAS NAMED PANHANDLE'S TOP EXECUTIVE IN NOVEMBER 1990 MR HENDRIX CLEANED UP PANHANDLE'S BOOKS BY SETTLING 500 MILLION IN DISPUTED CLAIMS BY SEVERAL UTILITIES PANHANDLE AGREED TO PAY HALF SEPARATELY THE COMPANY WROTE OFF 200 MILLION IN UNPROFITABLE ASSETS NOW HE'S TAKING A STAB AT DIVERSIFYING THE COMPANY BY MARKETING A SORT OF NATURALGAS AUTOMATED TELLER SYSTEM TO INDUSTRIAL CUSTOMERS UNDER THE BRAND NAME LINK THE SYSTEM'S SOFTWARE ALLOWS THEM TO QUICKLY PLACE THEIR ORDERS ALTER THEM AND PLAN ROUTES FOR GAS THROUGH THE INTERCONNECTING PIPELINES OF VARIOUS COMPANIES ONE EARLY CUSTOMER BRITISH GAS PLC IN LONDON THE LARGEST DIVERSIFIED GAS COMPANY IN THE WORLD AND A POSSIBLE MODEL FOR FUTURE VERTICAL INTEGRATION EFFORTS AS ENVISIONED BY MR HENDRIX WE NEED TO LOOK FOR NEW REVENUE SOURCES HE SAYS AND WHAT OF MR HENDRIX'S HOLDINGS HE SAYS HE HASN'T SOLD ANY OF THE PANHANDLE SHARES HE HAS BEEN PAID SO FAR ALTHOUGH HE HAS PLACED SOME OF THE STOCK IN GRANDCHILDRENS' TRUST ACCOUNTS HE SAYS HE'S LIVING MAINLY ON PANHANDLE'S QUARTERLY DIVIDEND OF 20 CENTS A SHARE SMALL WONDER HE'S CONSIDERING ASKING THE BOARD FOR AN INCREASE THAT ANALYSTS FORECAST AT 5 FOR LATER THIS YEAR 9402080091 940208 UNITED DOMINION JOB IN TURKEY CHARLOTTE NC UNITED DOMINION INDUSTRIES LTD SAID ITS LITWIN SA SUBSIDIARY IN PARIS SIGNED A 73 MILLION CONTRACT TO UPGRADE A REFINERY IN TURKEY THE CONTRACT IS WITH THE TURKISH PETROLEUM REFINERIES CORP WHICH IS OWNED BY THE GOVERNMENT OF TURKEY TO UPGRADE ITS IZMIT REFINERY 56 MILES SOUTHEAST OF ISTANBUL WORK ON THE REFINERY IS EXPECTED TO TAKE ABOUT 30 MONTHS TO COMPLETE UNITED DOMINION IS AN ENGINEERING CONCERN 9402080090 940208 ABREAST OF THE MARKET DOW INDUSTRIALS SNAP BACK 3490 REGAINING ONETHIRD OF SELLOFF BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE SNAPPED BACK AFTER FRIDAY'S CHILLING SELLOFF THE INDEX OF 30 BLUECHIP STOCKS RALLIED 3490 POINTS TO 390632 RECOVERING MORE THAN A THIRD OF THE LOSSES IT SUFFERED AFTER THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES FRIDAY OTHER STOCK MARKET BAROMETERS STAGED PARTIAL RECOVERIES HELPED IN PART BY A STABILIZING BOND MARKET STANDARD & POOR'S 500STOCK INDEX CLIMBED 195 POINTS TO 47176 AND THE NASDAQ COMPOSITE INDEX EDGED UP 192 TO 77920 RECOUPING JUST A FRACTION OF THE LOSS INCURRED FRIDAY BUT THE NUMBER OF ADVANCING STOCKS CONTINUED TO TRAIL DECLINING ISSUES 1044 TO 1178 CAUSING SOME NERVOUSNESS AMONG TECHNICAL ANALYSTS TRADING WAS HEAVY WITH VOLUME ON THE BIG BOARD EASING TO 346779000 COMMON SHARES FROM FRIDAY'S HECTIC 377773000 SHARES THOUGH SOME STOCK STRATEGISTS WERE PREDICTING FURTHER DECLINES YESTERDAY STOCK PRICES STABILIZED ONCE IT BECAME APPARENT THAT INDIVIDUAL INVESTORS WEREN'T STAMPEDING OUT OF MUTUAL FUNDS THE BIG QUESTION COMING INTO YESTERDAY WAS WHETHER THE INDIVIDUAL INVESTOR WOULD BUY ON WEAKNESS SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS BUT JUDGING BY THE VOLUME AND THE PRICE ACTION THAT SHOULDN'T HAVE BEEN A WORRY INDEED FIDELITY INVESTMENTS THE US'S LARGEST MUTUAL FUND COMPANY REPORTED THAT ABOUT 90 MILLION FLOWED INTO THE FIRM'S DOMESTIC STOCK FUNDS YESTERDAY THOUGH FOR A BRIEF MOMENT IT DIDN'T LOOK LIKE YESTERDAY WAS SHAPING UP TO BE A PLEASANT DAY FOR THE FIRST TWO HOURS OF THE DAY IT WAS A LITTLE SCARY SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT BOSTONBASED FIDELITY WE SAW MORE MONEY GO OUT OF THE FUNDS THAN INTO THE FUNDS BUT MR LITVACK SAID THE SITUATION STARTED TO TURN AROUND AT ABOUT 1030 AM EST ALL OF A SUDDEN INVESTORS WHO HAD PUT IN EARLY ORDERS TO REDEEM SHARES FROM FIDELITY BEGAN CALLING UP TO CANCEL THEIR REQUESTS OTHERS BEGAN PHONING IN ORDERS TO BUY MORE SHARES DESPITE YESTERDAY'S STRENGTH MR DODGE OF DEAN WITTER ISN'T READY TO GIVE THE STOCK MARKET A CLEAN BILL OF HEALTH HE THINKS STOCK PRICES COULD FALL AN ADDITIONAL 2 TO 3 IN THE COMING WEEKS AS BOND PRICES ERODE UNDER THE WEIGHT OF THE TREASURY'S REFUNDING AND A SET OF INFLATION NUMBERS THAT MANY ECONOMISTS SAY WILL LIKELY BE UNFAVORABLE ECONOMICALLY SENSITIVE STOCKS WERE BEHIND THE INDUSTRIAL AVERAGE'S COMEBACK ALUMINUM CO OF AMERICA JUMPED 2 TO 78 1/8 GENERAL MOTORS 1 3/8 TO 63 CATERPILLAR 2 3/4 TO 105 1/4 AND GENERAL ELECTRIC 1 3/4 TO 108 1/4 MR DODGE SAID IT WAS ONLY LOGICAL THAT CYCLICAL STOCKS PERFORMED WELL YESTERDAY BECAUSE THE FED'S MOVE TO RATCHET UP INTEREST RATES CAME LARGELY IN RESPONSE TO THE STRENGTHENING ECONOMY MEANWHILE RATESENSITIVE STOCKS CONTINUED TO LAG BEHIND BANKING STOCKS ENDED MIXED AFTER EARLY SIGNS OF WEAKNESS THE DOW JONES UTILITY AVERAGE EASED 086 POINT TO 21935 AND A NUMBER OF INSURANCE STOCKS TOOK IT ON THE CHIN EQUITABLE LOST 1/4 TO 26 1/2 AETNA LIFE & CASUALTY 1/4 TO 60 7/8 AND ST PAUL 2 3/8 TO 83 1/4 INTERNATIONAL BUSINESS MACHINES ADDED 2 1/4 TO 54 1/4 AFTER TUMBLING 3 1/2 IN FRIDAY'S MARKET SELLOFF BARRON'S MAGAZINE SAID BIG BLUE WAS NAMED ONE OF THE FAVORITES OF INVESTMENT MANAGERS RESPONDING TO ITS QUARTERLY BIG MONEY POLL AMONG OTHERS HOME DEPOT CLIMBED 1 5/8 TO 39 AND INTEL ADDED 1/4 TO 62 ON THE NASDAQ STOCK MARKET MEANWHILE MANY OTHER TECHNOLOGY ISSUES WERE STRONG MOTOROLA ADVANCED 1 TO 96 1/4 COMPAQ COMPUTER RALLIED 2 5/8 TO 87 7/8 AND TEXAS INSTRUMENTS GAINED 1 3/4 TO 72 ON NASDAQ APPLE COMPUTER ADDED 3 1/8 TO 36 1/2 AND 3COM ROSE 1 3/4 TO 58 1/8 ASARCO JUMPED 1 1/2 TO 25 PHELPS DODGE GAINED 1 3/8 TO 56 1/4 AND MAGMA COPPER INCREASED 5/8 TO 15 7/8 AFTER MERRILL LYNCH RAISED RATINGS ON SHARES OF THE COPPER PRODUCERS ASARCO'S INTERMEDIATETERM RATING WAS LIFTED TO ABOVE AVERAGE FROM NEUTRAL THE OTHER TWO WERE RAISED TO BUY FROM ABOVE AVERAGE HOWEVER PRECIOUS METALS PRODUCERS WERE WEAK AS GOLD FOR APRIL DELIVERY TUMBLED IN NEW YORK AMERICAN BARRICK WAS OFF 1 TO 25 3/4 HOMESTAKE MINING DROPPED 1 1/8 TO 21 NEWMOUNT MINING DROPPED 2 5/8 TO 52 AND ON THE AMEX ECHO BAY MINES DECLINED 3/8 TO 12 3/4 SCIMED LIFE SYSTEMS SKIDDED 1 3/4 TO 40 ON NASDAQ HAMBRECHT & QUIST ANALYST KURT KRUGER ATTRIBUTED THE WEAKNESS TO CONCERN ABOUT A POSSIBLE DELAY IN THE MAPLE GROVE MINN MEDICAL DEVICE MAKER'S PATENT DISPUTE WITH PFIZER MR KRUGER SAID A FEDERAL COURT DECISION ON THE MATTER MAY NOT COME AS SOON AS EXPECTED THE COMPANY SAID IT WASN'T AWARE OF ANY REASON FOR THE WEAKNESS CALLAWAY GOLF RALLIED 4 1/4 TO 68 3/4 A MOVE THAT A SPOKEWOMAN FOR THE CARLSBAD CALIF COMPANY WAS AT A LOSS TO EXPLAIN ONE POSITIVE FOR THE COMPANY THOUGH WAS THAT JOHNNY MILLER A COMPANY SPOKESMAN WON A TOURNAMENT SUNDAY USING CALLAWAY CLUBS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9402080089 940208 MARKETING & MEDIA ROGERS COMMUNICATIONS STILL BICKERING WITH MACLEAN HUNTER OVER ACQUISITION BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROGERS COMMUNICATIONS INC AND MACLEAN HUNTER LTD CONTINUED TO BICKER OVER THE CONDITIONS UNDER WHICH ROGERS WILL PROCEED WITH ITS PROPOSED MULTIBILLIONDOLLAR BID TO ACQUIRE MACLEAN HUNTER A BROADCASTING PUBLISHING AND PRINTING CONCERN BASED HERE ROGERS A TORONTO TELECOMMUNICATIONS CONCERN SAID IT ASKED THE ONTARIO SECURITIES COMMISSION TO RULE THAT IT DOESN'T HAVE TO OFFER TO BUY A BLOCK OF 363 MILLION MACLEAN HUNTER SHARES CONTROLLED BY THE TARGET COMPANY MACLEAN HUNTER'S SHAREHOLDERSRIGHTS PLAN REQUIRES ANY BIDDER TO OFFER TO ACQUIRE ALL SHARES OF THE COMPANY WHICH WOULD INCLUDE THE 363 MILLIONSHARE BLOCK ROGERS SAID THAT THE ACQUISITION OF THIS BLOCK WOULD FORCE THE COMPANY TO SHELL OUT MILLIONS OF DOLLARS IN CAPITALGAINS TAX MAKING THE TRANSACTION MUCH LESS ATTRACTIVE BUT RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAID THAT ROGERS APPEARS TO BE SEEKING A WAY TO BYPASS MACLEAN HUNTER'S SHAREHOLDERSRIGHTS PLAN WITH ITS REQUIREMENT TO LEAVE A BID OPEN FOR 120 DAYS IN ORDER TO ALLOW THE TARGET COMPANY'S BOARD TO SEEK ALTERNATIVE OFFERS MACLEAN HUNTER SAID IT WOULDN'T TENDER THE BLOCK OF SHARES TO A SOCALLED PERMITTED BID BY ROGERS OR ANY OTHER BIDDER OR TO A BID APPROVED BY MACLEAN HUNTER'S BOARD A PERMITTED BID IS ONE THAT MEETS THE CONDITIONS OF A SHAREHOLDERSRIGHTS PLAN WHICH INCLUDE THE 120DAY WAITING PERIOD AND THE CALLING OF A SHAREHOLDERS' MEETING TO APPROVE THE TRANSACTION BUT GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS SAID THE COMPANY DOESN'T WANT MACLEAN HUNTER TO IMPOSE RESTRICTIONS ON THE TYPE OF OFFER ROGERS CAN MAKE THEY'RE FORCING US INTO A NARROW SET OF RULES MR SAVAGE SAID HE ADDED THAT ROGERS ISN'T COMFORTABLE WITH THE TIMECONSUMING PROCEDURES PROVIDED FOR IN THE RIGHTS PLAN HE DECLINED TO SAY WHETHER ROGERS WILL SEEK TO OVERTURN THE PLAN WHILE ANYTHING OTHER THAN A PERMITTED BID COULD RESULT IN THE ISSUANCE UNDER THE SHAREHOLDERSRIGHTS PLAN OF MILLIONS OF ADDITIONAL MACLEAN HUNTER SHARES AT A 50 DISCOUNT TO MARKET VALUE FEW ANALYSTS BELIEVE THAT THIS WILL HAPPEN IT'S DIFFICULT NOT TO SEE ALL THIS AS A DELAYING TACTIC BY ROGERS SAID ANDREW MCCREATH AN ANALYST AT GORDON CAPITAL CORP IN TORONTO THIS IS A LEGITIMATE ISSUE AND THEY MAY WELL BE LOOKING FOR AN OSC VIEW ON IT BUT ONE CAN ONLY SUSPECT THAT THEY'RE TRYING TO BUY A LITTLE TIME HERE ROGERS HAS YET TO MAKE A FORMAL OFFER FOR THE MACLEAN HUNTER SHARES DESPITE INDICATING ITS PLAN TO DO SO LAST WEEK MR OSBORNE SAID HE HAS PROPOSED TO ROGERS EXECUTIVES THAT THEY SUBMIT AN OFFER TO SHAREHOLDERS FOR CONSIDERATION WITH WHATEVER CONDITIONS ROGERS FEELS ARE NECESSARY INCLUDING A FAVORABLE JUDGEMENT FROM THE OSC WE CAN'T REACT TO A BID WE HAVEN'T SEEN YET HE SAID THE MARKET'S BEEN WAITING FOR THIS FOR NEARLY A WEEK MR OSBORNE DECLINED TO SAY HOW ROGERS EXECUTIVES RESPONDED TO THE REQUEST SOME SPECULATION CENTERS ON WHETHER ROGERS HAS BEEN ABLE TO ARRANGE FINANCING FOR THE FULL CASH PORTION OF WHAT IS EXPECTED TO BE A CASH AND STOCK OFFER ROGERS TOLD ANALYSTS LAST WEEK IT HAS A BANK BRIDGE LOAN OF TWO BILLION CANADIAN DOLLARS US148 BILLION IN PLACE TO FUND THE ACQUISITION OF MACLEAN HUNTER THE TELECOMMUNICATIONS CONCERN ALSO HAS ABOUT C700 MILLION IN CASH ON ITS BOOKS MUCH OF WHICH HAS BEEN RAISED OVER THE PAST 12 MONTHS THROUGH DEBT ISSUES THE ACQUISITION OF MACLEAN HUNTER COULD COST ROGERS C289 BILLION BASED ON THE CURRENT MARKET VALUE OF THE FORMER'S SHARES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY THE VALUE OF MACLEAN HUNTER'S SHARES FELL TO C1675 A SHARE OFF 75 CANADIAN CENTS ON THE NEWS THAT ROGERS IS HOLDING OFF FROM MAKING AN OFFER SPECULATION HAD DRIVEN MACLEAN HUNTER'S STOCK PRICE TO A 52WEEK HIGH OF C1875 A SHARE IN INTRADAY TRADING FRIDAY SOME ANALYSTS SAID ROGERS COULD BE STALLING TO PUSH OUT MARKET ARBITRAGERS WHO HAVE BEEN HEAVY PLAYERS IN MACLEAN HUNTER STOCK THE STOCK HAD BEEN TRADING AT AROUND C1375 PRIOR TO EMERGENCE OF ROGERS AS A POTENTIAL BIDDER BUT GORDON CAPITAL'S MR MCCREATH SAID HE BELIEVES THAT SINCE MACLEAN HUNTER HAS BEEN PUT IN PLAY AN ACQUIRER LIKELY WILL END UP PAYING C1850 TO C20 A SHARE MACLEAN HUNTER ITSELF HAS ACKNOWLEDGED IT IS SEEKING ALTERNATIVES TO THE UNSOLICITED EXPRESSIONS OF INTEREST BY ROGERS IT SAID ALTERNATIVES BEING STUDIED INCLUDE A RECAPITALIZATION OF MACLEAN HUNTER THE SPINOFF OR SALE OF ITS CANADIAN CABLE ASSETS OR SOME ALLIANCE WITH A THIRD PARTY THE COMPANY ALSO SAID IT IS IN ACTIVE DISCUSSIONS WITH A NUMBER OF PARTIES INTERESTED IN ITS US CABLETELEVISION ASSETS LAST FALL IT RETAINED GOLDMAN SACHS & CO TO ADVISE IT ON THE FUTURE OF THOSE ASSETS AND MR OSBORNE SAID DETAILED DISCUSSIONS WITH INTERESTED PARTIES BEGAN ABOUT THREE WEEKS AGO ROGERS IN A LETTER TO MR OSBORNE ASKED MACLEAN HUNTER TO REFRAIN FROM ENTERING ANY AGREEMENT OR UNDERSTANDING RELATING TO ITS BUSINESSES OR ASSETS AT THIS TIME IT ALSO IS SEEKING EQUAL ACCESS TO INFORMATION PROVIDED TO THIRD PARTIES ABOUT THE US AND CANADIAN CABLE ASSETS MR OSBORNE SAID MACLEAN HUNTER WILL PROVIDE INFORMATION TO ROGERS BUT WON'T NEGOTIATE EXCLUSIVELY WITH THE TELECOMMUNICATIONS CONCERN HE DECLINED TO GIVE HIS RESPONSE TO THE REQUEST TO LEAVE ASSETS UNTOUCHED 9402080088 940208 GTE GETS TWA CONTRACT STAMFORD CONN GTE CORP SAID ITS GTE AIRFONE UNIT RECEIVED A CONTRACT FROM TRANS WORLD AIRLINES TO PROVIDE ADVANCED AIRPLANETELEPHONE SERVICE THE GENSTAR DIGITAL SYSTEM WILL ALLOW PASSENGERS TO RECEIVE CALLS PLACED FROM THE GROUND IN ADDITION TO MAKING OUTBOUND CALLS THE NEW SYSTEM REPLACES AN ANALOG SERVICE AVAILABLE ON SOME TWA AIRCRAFT THE CONTRACT COVERS ABOUT 200 CURRENT AND FUTURE AIRCRAFT IN THE TWA FLEET 9402080087 940208 THE CLINTON BUDGET SCIENCE AND TECHNOLOGY PROGRAMS TO GET BIG BOOSTS IN SPENDING BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESIGN A BETTER MOUSETRAP PREFERABLY A COMPUTERIZED ONE WITH BROADBAND COMMUNICATIONS AND THERE MAY BE SOME MONEY IN THE CLINTON BUDGET TO HELP YOU BUILD IT THE CLINTON ADMINISTRATION PLANS BIG INCREASES IN A NUMBER OF OBSCURE COMMERCIAL RESEARCH PROGRAMS NIST ARPA TRP HPCC THAT ONLY VICE PRESIDENT AL GORE COULD LOVE AND PROBABLY FEW OTHERS UNDERSTAND THIS IS A BIG CHANGE FROM 12 YEARS OF REPUBLICAN RULE WHEN THE SCIENCE AND TECHNOLOGY BUDGET WAS DOMINATED BY BIGSCIENCE PROJECTS THAT PROMISED TO LAND ASTRONAUTS ON MARS AND PULVERIZE ATOMS ON EARTH CLINTONITES WANT TO HARNESS SCIENCE AND TECHNOLOGY TOWARD THE END OF ECONOMIC RECOVERY SAYS JOHN GIBBONS THE PRESIDENT'S SCIENCE ADVISER TO THAT END THE BIGGEST WINNER IS A LITTLEKNOWN AGENCY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY OR NIST LOCATED IN ONE OF WASHINGTON'S SLEEPIEST BUREAUCRACIES THE COMMERCE DEPARTMENT NIST NOW IS TO BE THE NERVE CENTER OF THE NATION'S INDUSTRIAL POLICY AND WAS REWARDED WITH A 78 BUDGET INCREASE TO 874 MILLION IN THE YEAR BEGINNING OCT 1 1994 COMMERCE SECRETARY RON BROWN SAYS HE WANTS TO NEARLY DOUBLE THAT BUDGET TWO YEARS LATER WHAT DOES NIST DO IT USED TO BE KNOWN AS THE NATIONAL BUREAU OF STANDARDS AND IT STILL FIGURES OUT THE EXACT MEASUREMENT OF A POUND BUT IT ALSO FUNDS A VARIETY OF COMMERCIAL R&D VENTURES IN ELECTRONICS COMPUTERS AND OTHER EXOTICA UNDER WHAT'S CALLED THE ADVANCED TECHNOLOGY PROGRAM THE ATP IS SCHEDULED TO RECEIVE 450 MILLION IN FISCAL YEAR 1995 MORE THAN TWICE WHAT IT CURRENTLY GETS THE ATP IS A FAVORITE OF TECHNOLOGY WATCHERS BECAUSE IT HAS SO FAR AWARDED PROJECTS STRICTLY BASED ON TECHNICAL AND BUSINESS MERIT AS DECIDED BY VARIOUS PANELS OF EXPERTS BUT WITH ITS BUDGET BALLOONING WITHOUT HIRING ANY MORE MANAGERS THE PROGRAM MAY START MAKING BIGGER AWARDS THE KIND THAT DRAW THE ATTENTION OF LAWMAKERS TRYING TO LARD UP THE BUDGET WITH PORK HISTORICALLY PORK HAS POISONED A NUMBER OF BIG COMMERCIAL R&D PROJECTS RANGING FROM THE SUPERSONIC TRANSPORT TO THE BREEDER REACTOR LAWMAKERS AND THE COMPANIES THEY REPRESENT HAVE KEPT THE PROJECTS ALIVE WELL AFTER IT WAS APPARENT THAT THE PROGRAMS WERE LOSERS AND WASTING HUNDREDS OF MILLIONS OF DOLLARS THE CLINTON ADMINISTRATION IS TOO NEW TO HAVE ADDED TO THAT SORRY LEGACY BUT TECHNOLOGY WATCHERS WORRY THAT THE ADMINISTRATION'S SUPERCAR PROJECT WHICH AIMS TO TRIPLE THE GASOLINE MILEAGE OF CURRENT CARS WITHIN A DECADE MAY TURN OUT TO BE ANOTHER LOSER THE ADMINISTRATION IS TARGETING AT LEAST 175 MILLION FOR THE PROJECT IN FISCAL 1995 WHICH IS SUPPOSED TO BE LARGELY MATCHED BY THE BIG THREE AUTO MAKERS BUT THERE IS NO EVIDENCE THAT CONSUMERS HAVE MUCH INTEREST IN BETTER GAS MILEAGE OR THAT THE BIG THREE HAVE MUCH INTEREST IN DEVELOPING TECHNOLOGIES THAT WOULD MAKE THEIR CARS OBSOLETE WHEN FIRMS IN OLIGOPOLISTIC INDUSTRY GET TOGETHER TO DO RESEARCH RATHER THAN INCREASING INFORMATION THEY MIGHT COLLUDE TO DELAY IT SAYS LINDA COHEN AN ECONOMIST AT THE UNIVERSITY OF SOUTHERN CALIFORNIA THE CLINTON PLAN ALSO TARGETS A NUMBER OF OTHER COMMERCIAL R&D PROJECTS FOR BIG INCREASES THE MUCHBALLYHOOED INFORMATION SUPERHIGHWAY A FANCY NAME FOR ADVANCED COMPUTING AND COMMUNICATIONS PROJECTS IS SLATED FOR A 32 INCREASE TO 13 BILLION THE ADVANCED RESEARCH PROJECT AGENCY THAT'S ARPA THE PENTAGON RESEARCH AGENCY IS SUPPOSED TO GET A 13 INCREASE TO 625 MILLION FOR ITS PROJECTS TO CONVERT DEFENSE PROGRAMS TO CIVILIAN USE AND THE BUDGET FOR THE HUMAN GENOME PROJECT WHICH IS TRYING TO DECODE THE INFORMATION IN HUMAN GENES WOULD BE BOOSTED 22 TO 241 MILLION THE GENE WORK IS OFFICIALLY CATEGORIZED AS BASIC RESEARCH BUT THE EFFORT UNDERLIES A NUMBER OF NEW GENETIC TESTS AND THERAPIES THE ENVIRONMENTAL PROTECTION AGENCY'S BUDGET ALSO PROVIDES AN INCREASE FOR R&D AND OTHER AID TO THE NATION'S ENVIRONMENTAL TECHNOLOGY INDUSTRY WHICH FACES COMPETITION FROM GERMANY AND OTHER COUNTRIES THE CLINTON TEAM THOUGH ISN'T A SUCKER FOR EVERY SEXY PROGRAM WITH A HIGHTECH SMILE THE PENTAGON PLANS TO CUT FUNDING TO DEVELOP THE NEXT GENERATION OF VIDEO SCREENS KNOWN AS HIGHDEFINITION TV BY 20 TO 68 MILLION DURING THE BUSH ADMINISTRATION THE FIGHT OVER HDTV FUNDING BECAME A SYMBOL OF THE REPUBLICANS' DISPLEASURE WITH SOCALLED INDUSTRIAL POLICY CLINTONITES ARE COMFORTABLE WITH THE CONCEPT OF GOVERNMENT PUSHING COMMERCIAL R&D EVEN IF THEY DON'T LIKE TO ADMIT TO INDUSTRIAL PLANNING AND THEY UNDERSTAND THAT CONGRESS INVARIABLY BOOSTS HDTV FUNDING ANYWAY 9402080086 940208 MARKETING & MEDIA TIME WARNER NET FELL IN 4TH PERIOD CASH FLOW GAINED BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC REPORTED SHARPLY LOWER NET EARNINGS FOR THE FOURTH QUARTER BECAUSE OF HEAVY INTEREST EXPENSE BUT SAID CASH FLOW INCREASED 27 ON GAINS IN ITS MUSIC PUBLISHING AND HOME BOX OFFICE DIVISIONS NET INCOME FOR THE THREE MONTHS WAS 7 MILLION COMPARED WITH 68 MILLION FOR THE FOURTH QUARTER OF 1992 AFTER PREFERRED DIVIDEND PAYMENTS THE NET INCOME APPLICABLE TO COMMON SHARES WAS 4 MILLION FOR THE QUARTER COMPARED WITH A 93 MILLION NET LOSS A YEAR EARLIER THE ENTERTAINMENT COMPANY'S PERSHARE RESULTS WERE AFFECTED BY THE PREFERRED DIVIDEND REQUIREMENTS OF 3 MILLION IN THE 1993 PERIOD AND 161 MILLION IN THE YEAREARLIER PERIOD ON A PERSHARE BASIS EARNINGS IN THE 1993 QUARTER WERE ONE CENT COMPARED WITH A NET LOSS OF 25 CENTS A SHARE IN THE FOURTH QUARTER OF 1992 TIME WARNER HAS BEEN ON A CAMPAIGN TO RESTRUCTURE EXPENSIVE DEBT REPLACING COSTLY PREFERRED DIVIDENDS WITH TAXEFFICIENT LOWERCOST DEBENTURES TIME WARNER SAID CASH FLOW INCREASED TO 760 MILLION ON REVENUE OF 41 BILLION IN THE FOURTH QUARTER COMPARED WITH CASH FLOW OF 740 MILLION ON REVENUE OF 38 BILLION IN THE 1992 FOURTH QUARTER CASH FLOW OR OPERATING INCOME BEFORE INTEREST DEPRECIATION AND AMORTIZATION IS A PRIMARY INDICATOR OF HEALTH FOR CABLE COMPANIES AND BECAUSE OF ITS HEAVY DEBT TIME WARNER HAS STRESSED THE CASH FLOW RESULTS IN ITS QUARTERLY REPORTS REVENUE WAS UP 96 FOR THE QUARTER THE RESULTS WHICH WERE IN LINE WITH ANALYSTS' EXPECTATIONS WERE BOOSTED BY GAINS IN THE MUSIC AND PUBLISHING GROUPS WHICH REPORTED A COMBINED CASH FLOW OF 361 MILLION UP 10 ON REVENUE OF 196 BILLION TIME WARNER RESTATED ITS EARNINGS FOR 1992 TO REFLECT THE PURCHASE OF A 255 STAKE IN ITS TIME WARNER ENTERTAINMENT UNIT BY U S WEST INC IN SEPTEMBER 1993 AND THE ACQUISITION BY ITS FILMED ENTERTAINMENT GROUP OF 50 OF SIX FLAGS ENTERTAINMENT IT DIDN'T ALREADY OWN IN THE ENTERTAINMENT GROUP FOURTHQUARTER CASH FLOW WAS UP 9 TO 61 MILLION FOR HOME BOX OFFICE MAINLY BECAUSE OF AN INCREASE IN SUBSCRIBERS BUT DOWN FOR THE FILMED ENTERTAINMENT AND CABLE DIVISIONS IN FILMED ENTERTAINMENT ALTHOUGH THE WARNER BROS STUDIO POSTED A RECORD FOURTH QUARTER CASH FLOW FOR THE SIX FLAGS THEME PARK WAS DOWN BECAUSE OF BUSINESS'S SEASONAL NATURE FOR THE CABLE DIVISION CASH FLOW FOR THE QUARTER WAS DOWN 5 LARGELY BECAUSE OF THE EFFECTS OF THE 1992 CABLE ACT WHICH RESTRICTS RATE INCREASES TIME WARNER STOCK GAINED 125 CENTS TO 3975 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9402080084 940208 THE CLINTON BUDGET FROM SHIP OF STATE PRESIDENT'S PLAN SETS OUT TO SCRAPE A FEW BARNACLES BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON YESTERDAY WAS A DARK DAY FOR THE BELUGA WHALE COMMITTEE FOR ATLANTIC BLUEFIN TUNA RESEARCH AND FOR THE ZEBRA MUSSEL RESEARCH COMMUNITY IN HIS QUEST FOR SOMETHING ANYTHING TO ELIMINATE FROM THE FEDERAL BUDGET PRESIDENT CLINTON IS PROPOSING TO ELIMINATE SCORES OF TINY PROGRAMS ALL ACROSS THE GOVERNMENT ALTHOUGH THE DOLLAR AMOUNTS IN THE 15 TRILLION BUDGET ARE TINY A LOOK AT THE COMMERCE DEPARTMENT'S NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WHERE THE PRESIDENT IS PROPOSING TO ELIMINATE MORE THAN 40 PROGRAMS SUGGESTS THAT THE TRIMS MAY MAKE UP IN PIQUANCY WHAT THEY LACK IN SIZE FOR EXAMPLE THE BUDGET RAISES THIS QUESTION WHERE CAN AN OUSTED SAMOAN METEOROLOGIST FIND WORK THAT WAS THE CONCERN PREOCCUPYING AKAPO AKAPO WHO WITH HIS SEVEN FELLOW NATIONAL WEATHER SERVICE STAFFERS HAVE THEIR VERY OWN LINE ITEM IN THE DREAD ILLUSTRATIVE LISTING OF PROGRAMMATIC TERMINATIONS AND REDUCTIONS PAGES IN THE PRESIDENT'S FEDERAL BUDGET THIS IS THE FIRST I'VE HEARD ABOUT CUTS NEWS YOU KNOW TRAVELS SLOWLY TO HERE SAYS THE 46YEAROLD MR AKAPO AS HE CHECKS BAROMETRIC PRESSURE AT HIS TINY WEATHER SERVICE STATION IN LUSH TROPICAL SAMOA I GUESS IT'S THE UNEMPLOYMENT LINE FOR ME OH BOY I'VE GOT TO CALL MY WIFE THEN THERE ARE THOSE 10FOOTWIDE BUOYS OFF THE CALIFORNIA COAST THAT COST ABOUT 100000 A YEAR TO KEEP IN BARNACLES FEDERAL BUDGET CUTTERS HAVE BEEN TRYING TO SINK THEM SINCE THE MID1980S BUT AS QUICKLY AS THEY DISAPPEARED FROM ONE PART OF THE BUDGET THEY WOULD SHOW UP IN ANOTHER THANKS TO INTERCESSION BY CONGRESS CALIFORNIA FISHERMEN AND BOATERS WHO TROLL NEAR THE BUOYS' TWO SITES OFF THE COASTS OF SANTA CRUZ AND LOS ANGELES SAY THE INFORMATION ON WEATHER AND CURRENTS SUPPLIED BY THE GIZMOLOADED BOBBERS IS INVALUABLE ONE PROBLEM WITH AGENCIES LIKE NOAA SAYS CAPT NELSON IS A WEALTH OF LINEITEM FUNDING AND PROGRAMS WITH WEIRD NAMES SOME OF IT JUST JUMPS OUT AT A BUDGET CUTTER HE SAYS THAT'S THE CASE WITH THE ZEBRA MUSSEL AND BLUEFIN TUNA PROGRAMS BOTH OF WHICH ARE TARGETED FOR EXTINCTION IT'S ALSO THE CASE WITH THE BELUGA WHALE COMMITTEE THE GROUP HAS RECEIVED 200000 A YEAR FOR THE PAST FIVE YEARS OR SO SAYS TAMRA FARIS A FISHERIES BIOLOGIST AT THE ALASKA REGIONAL OFFICE OF NOAA WHICH HAS HELPED RUN THE PROGRAM MOST OF THE MONEY ACTUALLY ENDS UP WITH THE ALASKA ESKIMO WHALING COMMISSION WHICH SPEAKS AT WHALING CONFERENCES IN FAVOR OF ITS RIGHT TO FISH THE WHALES FOR SUBSISTENCE THEIR OPPONENTS ENVIRONMENTALISTS WHO DON'T THINK THE WHALES SHOULD BE HUNTED FOR ANY REASON HAVE THE ADDED WEAPON OF A BATTLE CRY BABY BELUGA A CUDDLY ODE TO THE WHITE WHALES BY RAFFI FOLKSINGING STAR FOR AMERICA'S TWOYEAROLD SET SURE MY KIDS HAVE LISTENED TO THE SONG BUT PEOPLE NEED TO UNDERSTAND THE ISSUES ARE BROADER THAN THAT SAYS MS FARIS TERSELY THE MYSTIC MARITIME EDUCATION AND RESEARCH CENTER AT THE RESTORED SEAPORT IN MYSTIC CONN HAS 387 HISTORIC BOATS IN A HUGE ABANDONED VELVET MILL WHERE A LEAKY ROOF AND MISERABLE CONDITIONS HAS CAUSED SOME DAMAGE THOUGH IT'S NOT A CRISIS YET SAYS CHRIS COX WHO HELPS RUN A CORPORATION THAT MANAGES THE SEAPORT THE PROBLEM IS THAT 1 MILLION A YEAR IN FEDERAL FUNDS TO HELP TURN THE OLD MILL INTO A MUSEUM HAVE BEEN SLATED FOR CUTOFF WE'RE JUST IN THE MIDDLE OF RENOVATION WE CAN'T STOP NOW SAYS MR COX WHO ADDS THAT SEAPORT OFFICIALS ARE HOPING CONNECTICUT'S CONGRESSIONAL DELEGATION WILL NOT ALLOW THESE UNCONSCIONABLE CUTS THEN THERE IS THE WIND PROFILER DEMONSTRATION NETWORK WHICH HAS ENJOYED ANNUAL FUNDING OF 44 MILLION OVER THE PAST FEW YEARS TO BUILD 32 GROUNDBASED DEVICES THAT MEASURE ATMOSPHERIC WINDS FROM 1500 TO 15000 FEET ABOVE THE EARTH'S SURFACE UP THERE THE POLITICAL CONSTITUENCY IS THIN BUT SOME PILOTS HAVE FOUND SUCH DATA USEFUL ESPECIALLY IN AVOIDING STRONG HEADWINDS THAT EAT UP FUEL IN FACT THERE WERE HOPES THAT THIS PILOT PROGRAM WOULD BE EXPANDED UNTIL YESTERDAY'S CHILL WIND THOUGH NATIONAL WEATHER SERVICE SPOKESMAN FRANK LEPORE SAYS THE DATA COLLECTED BY THE DEVICES WENT TO A GOVERNMENT RESEARCH CENTER IN BOULDER COLO NO LAYOFFS ARE EXPECTED IF THE PROGRAM IS ACTUALLY TERMINATED OZONE RESEARCH IS HOT MR LEPORE OBSERVES AND THE WIND PROFILER STAFFERS MIGHT WELL MOVE OVER TO THAT AS FOR THE FATE OF THE DEVICES THEMSELVES WHICH LOOK LIKE SIXFOOTTALL BEDSPRINGS I'M NOT SURE WHAT WE'LL DO MR LEPORE SAYS I JUST CAN'T TAKE ANY MORE STUFF IN MY HOUSE 9402080083 940208 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ROCHELLE SHARPE DRUG TESTING GETS A BIG BOOST FROM THE CALIFORNIA SUPREME COURT LAST MONTH THE COURT ALLOWED THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION TO CONDUCT RANDOM DRUG TESTING OF STUDENT ATHLETES IT SAID THE PRIVATE SECTOR LIKE THE GOVERNMENT MUST ABIDE BY THE STATE CONSTITUTION'S RIGHT OF PRIVACY BUT WHILE THE GOVERNMENT CAN ONLY OVERRIDE THE PRIVACY RIGHT IF IT HAS A COMPELLING STATE INTEREST THE PRIVATE SECTOR HAS MORE LEEWAY IT CAN INVADE PRIVACY FOR LEGITIMATE INTERESTS ALTHOUGH THE COURT DIDN'T RULE ON WORKPLACE DRUG TESTING SPECIFICALLY THE DECISION IS VERY GOOD NEWS FOR COMPANIES WHO WANT TO TEST EMPLOYEES FOR DRUGS SAID VICTOR SCHACHTER A SAN FRANCISCO LAWYER HE SAID IT WILL ALLOW COMPANIES TO TEST JOB APPLICANTS AS WELL AS EMPLOYEES WHOM THEY REASONABLY SUSPECT ARE TAKING DRUGS WHETHER COMPANIES CAN DO RANDOM DRUG TESTING REMAINS UNCLEAR SOME 7 OF AMERICAN WORKERS SURVEYED IN 1990 USED AN ILLICIT DRUG IN THE PRECEDING MONTH DOWN FROM 14 IN 1979 ACCORDING TO THE NATIONAL RESEARCH COUNCIL SELFDEFENSE CLASSES GO TO THE WORKPLACE AS FEAR OF VIOLENCE INCREASES MORE COMPANIES ARE OFFERING COURSES IN RESPONSE TO EMPLOYEE REQUESTS AND INCREASED CRIMINAL ACTIVITY STRIDE RITE CORP IN CAMBRIDGE MASS BEGAN OFFERING A PERSONALDEFENSE WORKSHOP LAST YEAR AFTER A WOMAN NOT AN EMPLOYEE WAS MUGGED IN A NEARBY PARKING LOT MOST EMPLOYEES WHO SIGN UP FOR THE CLASSES ARE WOMEN SOME COMPANIES ASK SECURITY GUARDS TO TEACH SELFDEFENSE TECHNIQUES WHILE OTHERS HIRE OUTSIDE CONSULTANTS TO SHOW HOW TO HANDLE DANGEROUS SITUATIONS OR TO SELL EMPLOYEES PEPPER SPRAY COMMONWEALTH EDISON CO TEACHES REPAIR CREWS WHAT TO DO WHEN CONFRONTED BY GANG MEMBERS IT ALSO IS DEVELOPING A VIDEO TO SHOW LINE SUPERVISORS HOW TO DEFUSE POTENTIAL OUTBURSTS AMONG EMPLOYEES VALENTINES AT WORK EMPLOYING WORKERS' SPOUSES GAINS ACCEPTANCE MOST COMPANIES EMPLOY MARRIED COUPLES AND LIKE THE RESULTS SAYS THE SOCIETY OF HUMAN RESOURCES MANAGEMENT MORE THAN 80 OF 432 COMPANIES SURVEYED HIRED SPOUSES SOME SAID RELATIVES INCREASE PRODUCTIVITY THROUGH FAMILY COMPETITION THE SOCIETY SAYS CANANDAIGUA WINE CO IN CANANDAIGUA NY SAYS HIRING RELATIVES IS A PLUS BECAUSE FAMILIES' SUCCESS GETS BOUND WITH THE COMPANY EMPLOYERS GENERALLY PROHIBIT COUPLES FROM SUPERVISING ONE ANOTHER AND SOME WON'T HIRE EXECUTIVES' SPOUSES BUT BANK OF BOSTON DROPPED A BAN ON EMPLOYING SENIOR OFFICERS' SPOUSES SAYING IT WAS LOSING GOOD EMPLOYEES SMALLTOWN COMPANIES LIKE LS STARRETT A PRECISION TOOLMAKER IN ATHOL MASS SAYS IT IS HARD TO AVOID HIRING FAMILY MEMBERS IT SHUNS THE TERM NEPOTISM EXTRAMARITAL OFFICE ROMANCES CAN LEAD TO DISMISSAL FOR IRRESPONSIBILITY BUT SOME FIRED LOVERS SUE FOR DISCRIMINATION OR INVASION OF PRIVACY SAYS CONSULTANT GOODRICH & SHERWOOD STRIKING OUT THE NUMBER OF MAJOR STRIKES IN THE US SANK TO ANOTHER RECORD LOW IN 1993 THE BUREAU OF LABOR STATISTICS SAYS ONLY 34 NEW STRIKES INVOLVING 178800 WORKERS BEGAN DOWN FROM 35 IN 1992 AND A HIGH OF 470 IN 1952 THE NUMBER OF NEW STRIKES STARTED PLUMMETING IN 1981 AFTER PRESIDENT REAGAN FIRED STRIKING AIRTRAFFIC CONTROLLERS COMPUTER ILLITERATES CAN DO SOME HIGHTECH JOB HUNTING STARTING TODAY NEW YORKBASED SELFPLACEMENT NETWORK INC WILL SEND RESUMES OUT ON SEVEN MAJOR ONLINE NETWORKS USED BY 16 MILLION PEOPLE IN 145 COUNTRIES THE COMPUTER WILL SEARCH WEEKLY FOR JOB LEADS AMONG 110000 LISTINGS IN ELECTRONIC JOB BANKS AND CLASSIFIED ADS PUT ONLINE BY 55 MAJOR NEWSPAPERS THE FEDERAL GOVERNMENT STILL EMPLOYS A HIGHER PERCENTAGE OF BLACKS AND ASIANS THAN THE PRIVATE SECTOR THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION REPORTS BLACKS ACCOUNTED FOR 179 OF FEDERAL WORKERS IN 1991 COMPARED WITH 132 OF PRIVATESECTOR EMPLOYEES ASIANS ACCOUNTED FOR 38 OF THE FEDERAL WORK FORCE COMPARED WITH 28 IN THE PRIVATE SECTOR UNEMPLOYMENT RISES AROUND THE WORLD AND THE OUTLOOK REMAINS DIM MORE PEOPLE ARE OUT OF WORK THAN EVER BEFORE ACCORDING TO THE INTERNATIONAL LABOR ORGANIZATION SOME 30 OF THE WORLD'S LABOR FORCE IS UNEMPLOYED OR UNDEREMPLOYED 120 MILLION PEOPLE ARE REGISTERED UNEMPLOYED AND ANOTHER 700 MILLION ARE UNDEREMPLOYED SAYS ALI TAQI THE ILO'S CHIEF OF STAFF UNEMPLOYMENT IS FORECAST TO REACH 86 IN INDUSTRIALIZED NATIONS BY THE END OF 1994 THE HIGHEST LEVEL SINCE THE DEPRESSION THE RATE IS PROJECTED TO FALL TO 65 IN THE US IN THE DEVELOPING WORLD JOBLESSNESS IS WORSENING IN ALL REGIONS EXCEPT SOUTHEAST AND EAST ASIA YOUTH UNEMPLOYMENT CONTINUES TO DEEPEN IN POLAND A THIRD OF ALL THE UNEMPLOYED IN 1992 WERE UNDER AGE 24 MOST HAD COMPLETED HIGH SCHOOL POVERTY HAS SKYROCKETED IN EASTERN EUROPE IN BULGARIA 73 OF ALL HOUSEHOLDS WERE BELOW THE POVERTY LINE IN 1992 UP FROM 42 TWO YEARS EARLIER THE CHECKOFF OATMEAL ON MY BLAZER RECENTLY PUBLISHED BY PANACHE PUBLICATIONS IN APPLETON WIS DESCRIBES PREPARING A BUSINESS PLAN FOR MOTHERHOOD AS THE BUNDLE OF JOY LAUNCH PLAN FOURTEEN PERCENT OF ALL EXPATRIATE EMPLOYEES ARE FEMALE TWICE AS MANY AS FIVE YEARS AGO PENNY PINCHING ALERT THE IRS RAISED THE STANDARD MILEAGE RATE FOR BUSINESS TRIPS TO 29 CENTS FROM 28 CENTS 9402080081 940208 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA REDUCED STATE EMPLOYEES' WORKWEEK TO 44 HOURS FROM 48 STARTING MARCH 1 AND ORDERED EIGHTHOUR SHIFTS GIVING MOST WORKERS SATURDAY AFTERNOONS OFF THOUGH THIS WAS SAID TO MARK THE FIRST SUCH REDUCTION SINCE THE COMMUNIST GOVERNMENT TOOK OVER IN 1949 CHINA'S OFFICIAL WORKWEEK STILL IS ONE OF THE WORLD'S LONGEST ROOTED IN SOCIALIST MANAGEMENT LINKING NATIONAL PRESTIGE TO STEADY PRODUCTION GROWTH MOST INDUSTRIALIZED COUNTRIES HAVE CUT THEIR WORKWEEKS TO 40 HOURS OR LESS SEEKING LOWER LABOR COSTS WITHOUT LAYOFFS TO COPE WITH LOWER DEMAND AMID RECESSIONS CHINESE WORKERS HAD COMPLAINED THAT THE 48HOUR WORKWEEK NOT ONLY DIDN'T IMPROVE PRODUCTIVITY AT UNPROFITABLE STATE ENTERPRISES BUT HURT MORALE SEPARATELY CHINA HAS OPENED A NUCLEAR PLANT 30 MILES FROM HONG KONG IN SHENZHEN WHERE A SECOND 900MEGAWATT REACTOR IS TO START COMMERCIAL PRODUCTION IN MIDYEAR THE COUNTRY'S ONLY OTHER NUCLEAR PLANT IN COASTAL ZHEJIANG PROVINCE HAS BEEN IN TRIAL OPERATION FOR TWO YEARS THE GOVERNMENT AIMS TO HAVE NUCLEAR POWER SUPPLY 5 OF CHINA'S ELECTRICITY NEEDS BY THE YEAR 2020 THE PHILIPPINES DELAYED UNTIL THE END OF THIS MONTH INCREASING PRICES OF OIL PRODUCTS DENOUNCED BY POLITICIANS BUSINESS AND LABOR PRESIDENT FIDEL RAMOS CAVED IN TO PROTESTS INCLUDING BOMBINGS AND A NATIONAL STRIKE THREAT THE INCREASES OF AS MUCH AS 28 ARE AIMED AT REDUCING A CHRONIC BUDGET DEFICIT AMID TAXCOLLECTION PROBLEMS AND CONGRESSIONAL RELUCTANCE TO PASS NEW TAXES THE OIL PRICING LEVY DIDN'T NEED LEGISLATIVE APPROVAL AND OFFERED EASY COLLECTION ALTERNATIVES WILL BE STUDIED SUCH AS BOOSTING THE OIL LEVY'S RELATIVE EFFECT ON HIGHERINCOME GROUPS CUTTING THE BUDGET OR SPEEDING PRIVATIZATIONS BRAZILIAN AUTO MAKERS IN JANUARY ASSEMBLED 106600 VEHICLES A RECORD FOR THE MONTH AND A 40 JUMP FROM A YEAR EARLIER THE SECTOR ALSO RECAPTURED 10TH PLACE IN WORLD PRODUCTION IN 1993 FROM NO 12 IN 1992 BRAZILIAN BUSINESS TRADITIONALLY SLOWS IN JANUARY THE HEIGHT OF THE SUMMER VACATION SEASON IN THE SOUTHERN HEMISPHERE YET DOMESTIC AUTO SALES IN JANUARY SOARED 46 TO 83900 UNITS CONTINUING A BOOM SINCE ASSEMBLERS PARTS MAKERS DISTRIBUTORS AND GOVERNMENTS AGREED LAST YEAR ON LOWER PROFIT MARGINS AND TAXES MOLDOVA AND RUSSIA SIGNED A PACT ON ECONOMIC COOPERATION FOR THIS YEAR THE TRADE ACCORD CALLS FOR MOLDOVA TO PAY WORLDMARKET PRICES FOR RUSSIAN OIL AND NATURAL GAS MOLDOVA AND OTHER FORMER SOVIET REPUBLICS LAST YEAR PAID BELOWMARKET PRICES FOR RUSSIAN ENERGY SUPPLIES YET MOLDOVA HAS RUN UP A 32 MILLION DEBT TO MOSCOW FOR NATURAL GAS UNDER THE PACT RUSSIA PLANS TO BUY FARM PRODUCTS AND NONFERROUS METALS FROM MOLDOVA WHICH WILL MAINLY IMPORT FUELS FROM RUSSIA THE SOUTH KOREAN GOVERNMENT WILL PROPOSE LEGAL REVISIONS TO LIBERALIZE FOREIGN INVESTMENT IN INFRASTRUCTURE PROJECTS SUCH AS ROADS AND PORTS THE LEGISLATION WOULDN'T ALLOW OVERSEAS INVESTORS MANAGEMENT RIGHTS IN PUBLICWORKS DEALS AND IT WOULD LIMIT THEM TO JOINING DOMESTIC GROUPS OR BUYING STAKES BUT THE PROPOSAL ALSO CALLS FOR TAX AND OTHER INCENTIVES TO ENSURE RETURNS ON INVESTMENT THE GOVERNMENT HOPES TO IMPROVE THE NATION'S INFRASTRUCTURE INADEQUACIES BLAMED AS AN OBSTACLE TO FASTER ECONOMIC GROWTH ARGENTINA SEEKS TO MAKE STOCKS AND FIXEDINCOME SECURITIES SUBJECT TO THE LUXURY TAX AN OFFICIAL SAID PLANNED LEGISLATION WOULD CUT TO 05 FROM 1 THE TAX RATE ON NONESSENTIAL GOODS BUT APPLY IT TO ASSETS SUCH AS EQUITIES SECOND HOMES PLANES AND BOATS VALUED AT MORE THAN 101000 THE PROPOSAL WOULDN'T APPLY TO COMPANIES INVESTMENT FUNDS OR FOREIGN INVESTORS IT WOULD TRIPLE LUXURYTAX REVENUE TO 354 MILLION NEXT YEAR FROM 113 MILLION LAST YEAR ARGENTINA'S TAX SYSTEM HAS BEEN FAULTED FOR RELYING HEAVILY ON CONSUMER LEVIES THAT BURDEN LOWERINCOME PEOPLE BRITAIN WHICH PROHIBITS TOBACCO ADVERTISING ON RADIO AND TELEVISION DECIDED AGAINST IMPOSING A BLANKET BAN BUT THE HEALTH MINISTRY SAID IT WOULD OPEN NEGOTIATIONS WITH THE TOBACCO INDUSTRY ON STRENGTHENING A VOLUNTARY AD AGREEMENT IN AN EFFORT TO CUT SMOKING AMONG YOUTHS THE GOVERNMENT HAS REVIEWED THE EVIDENCE THOROUGHLY AND FOUND LITTLE TO SUPPORT THE ARGUMENT THAT A STATUTORY BAN WOULD HAVE A DRAMATIC EFFECT ON FURTHER REDUCING SMOKING THE MINISTRY SAID TO HEAD OFF ANY LEGISLATION TO WIDEN THE RADIO AND TV AD BAN TOBACCO COMPANIES HAVE AGREED THEY WON'T ADVERTISE IN MOVIE THEATERS AND OUTDOORS NEAR SCHOOLS BUT DOCTORS LOBBYING GROUPS AND THE STATEFINANCED HEALTH ADVISORY COUNCIL SOUGHT A TOTAL BAN ON ADVERTISING TOBACCO PRODUCTS CITING PREMATURE DEATHS IN THE UK FROM SMOKINGRELATED DISEASES FRENCH FISHERMEN VOTED TO EXTEND THEIR NINEDAY STRIKE FOR THREE DAYS TO PRESS FOR MORE RELIEF FROM FOREIGN IMPORTS IN AN APPARENT APPEASEMENT MOVE FRENCH CUSTOMS AGENTS BLOCKED 50 TONS OF FISH SHIPMENTS THOUGH BRITAIN HAS A CREMATION RATE OF 70 ITS URBAN CEMETERIES ARE EITHER FULL OR CLOSE TO IT SO LONDON CEMETERY OFFICIALS PROPOSED THAT AFTER 75 YEARS REMAINS IN GRAVES WITHOUT LINKS TO LIVING RELATIVES BE PUT IN SMALLER CONTAINERS AND REBURIED DEEPER ALLOWING NEW BURIALS ABOVE THEM 9402080080 940208 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PROPOSED A 15 TRILLION FISCAL 1995 BUDGET THAT REFLECTS THE ADMINISTRATION'S PRIORITIES WHILE HEWING TO SPENDING CAPS THE BIG WINNERS ARE THE DEPARTMENTS OF JUSTICE COMMERCE EDUCATION AND TRANSPORTATION WHICH OVERSEE MANY OF THE INVESTMENT PROGRAMS IMPORTANT TO THE PRESIDENT DEBATE OVER THE DEFENSE BUDGET MEANWHILE IS EXPECTED TO FOCUS LESS ON ITS ALLOTMENT THAN ON A NEW VISION OF THE MILITARY'S ROLE THE PROPOSED BUDGET WOULD RAISE ABOUT 15 BILLION IN NEW USER FEES IN FISCAL 1995 YIELDING ABOUT 84 BILLION THROUGH 1999 WITH WALL STREET AND THE PHARMACEUTICAL INDUSTRY GETTING HIT THE HARDEST THE PROPOSAL WOULD SHRINK THE DEFICIT FOR THE THIRD YEAR IN A ROW TO 1651 BILLION THIS YEAR JOHN SCULLEY QUIT AS SPECTRUM'S CHAIRMAN AND CEO AND WAS FORCED TO ADMIT HE ACCEPTED A MULTIMILLIONDOLLAR PAY PACKAGE WITHOUT KNOWING THE FIRM WAS UNDER FEDERAL INVESTIGATION THE DOW JONES INDUSTRIALS SURGED 3490 TO 390632 ROARING BACK FROM FRIDAY'S 96POINT PLUNGE AFTER THE FED'S DECISION TO LIFT SHORTTERM INTEREST RATES ANALYSTS SAID INVESTORS REALIZED THE INCREASE WON'T HURT THE ECONOMY STOCK MARKETS WORLDWIDE TUMBLED AS MUCH AS 7 IN REACTION TO THE 24 DECLINE ON WALL STREET FRIDAY JAPAN'S RULING COALITION AGREED ON HOW TO FINANCE A LONGAWAITED TAX CUT POSSIBLY CLEARING THE WAY FOR TOKYO TO DELIVER THE REST OF ITS STIMULUS PLAN THE NIKKEI ROSE 25 ON THE NEWS TO END THE MORNING SESSION AT 2051635 UPS AND THE TEAMSTERS UNION REACHED A STRIKE ACCORD THE COMPANY AGREED NOT TO DISCIPLINE STRIKING WORKERS AND TO WAIVE DAMAGE CLAIMS THE CONGRESSIONAL BUDGET OFFICE IS EXPECTED TO RECOMMEND THAT THE CLINTON HEALTH PLAN BE PART OF THE FEDERAL BUDGET DESPITE WHITE HOUSE PROTESTS KELLOGG IS RAISING THE PRICES OF 38 COLD CEREALS AN AVERAGE OF 26 ITS SECOND PRICE INCREASE IN SIX MONTHS T2 MEDICAL AGREED TO MERGE WITH CURAFLEX HEALTHINFUSION AND MEDISYS TO CREATE THE SECONDLARGEST US INFUSIONTHERAPY FIRM BEHIND CAREMARK ALCOA IS SLASHING 100000 METRIC TONS OF ANNUAL ALUMINUM PRODUCTION OR ABOUT 8 OF DOMESTIC CAPACITY A GROWING NUMBER OF US COMPANIES ARE SETTING HIGHER RETURNONINVESTMENT CRITERIA FOR CAPITAL SPENDING ECONOMISTS SAY BUT NEVERTHELESS AREN'T CUTTING THEIR INVESTMENT PLANS SEVERAL PHARMOR DIRECTORS AND OTHER SHAREHOLDERS COULD BE FORCED TO REPAY ABOUT 75 MILLION RECEIVED FROM THE COMPANY IN A 1991 STOCK BUYBACK TIME WARNER REPORTED SHARPLY LOWER PROFIT FOR THE FOURTH QUARTER BECAUSE OF HEAVY INTEREST EXPENSE SMITH CORONA AND BROTHER INDUSTRIES OF JAPAN AGREED TO END 14 YEARS OF LITIGATION OVER CHARGES OF DUMPING TOYOTA IS EXPECTED TO REPORT AN 83 DROP IN PROFIT FOR ITS FIRST HALF BUT THAT IS STILL AN IMPROVEMENT FROM LAST SUMMER WHEN WITH THE YEN SOARING SOME ANALYSTS SAID THE JAPANESE CAR MAKER MIGHT POST ITS FIRST LOSS SINCE 1949 RH MACY IS EXPECTED TO ASK A FEDERAL BANKRUPTCY COURT FOR A SIXMONTH EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A CHAPTER 11 REORGANIZATION PLAN CONSUMER CREDIT INCREASED AT AN 112 ANNUAL RATE IN DECEMBER RISING 728 BILLION TO 78984 BILLION BONDS LEHMAN BROTHERS TREASURY INDEX 553641 OFF 2447 COMMODITIES OIL 1525 A BARREL OFF 38 CENTS DOW JONES FUTURES INDEX 14480 OFF 069 SPOT INDEX 13040 OFF 087 DOLLAR 10870 YEN OFF 060 17590 MARKS UP 00005 9402080079 940208 STUDY THIS BABY CHINESE FETUSES BEAR HEAVY COURSE LOADS LIMITED TO ONE CHILD COUPLES NURTURE PROGENY PREGNANT WITH WORLDLY POTENTIAL BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING VIOLET WEI SLOWLY HITCHES UP HER SWEATER AND PLACES A SMALL PLASTIC SPEAKER AGAINST HER SWOLLEN BELLY THE 28YEAROLD ACCOUNTANT TURNS ON A CASSETTE PLAYER THEN LEANS BACK AS THE TAPE BEGINS TO PLAY TO HER WOMB LET'S STUDY ENGLISH AGAIN A WOMAN'S VOICE CHIMES BRIGHTLY IN CHINESE SHE REELS OFF A LIST OF WORDS AND PHRASES IN CHINESE AND ENGLISH FATHER MAMMY READ BOOK HOW DO YOU DO BEFORE THE LESSON SEGUES INTO TWINKLE TWINKLE LITTLE STAR OUR BABY WON'T NECESSARILY KNOW ENGLISH WHEN HE'S BORN BUT AT LEAST HE'LL HAVE HEARD IT BEFORE SAYS MS WEI'S HUSBAND LI XIAOLEI 31 WHO IS A MANAGER IN THE ELECTRONICS COMPANY WHERE HIS WIFE WORKS HE'LL BE MORE INTERESTED IN IT SO HE CAN LEARN FASTER BUT WOULDN'T IT BE SOMETHING IF HE COULD CALL OUT MAMA' AS SOON AS HE'S BORN SUCH ARE THE HOPES OF MILLIONS OF PARENTS IN TODAY'S CHINA RESTRICTED BY THE GOVERNMENT'S ONECHILDPERFAMILY POLICY AND ENRICHED BY ECONOMIC REFORM THESE COUPLES CHERISH HIGH HOPES FOR THEIR ONE SHOT AT POSTERITY UNWILLING JUST TO LET NATURE TAKE ITS COURSE THEY GO ALL OUT TO NURTURE INTELLIGENT BEAUTIFUL HEALTHY CHILDREN EVEN BEFORE THEY ARE BORN TAIJIAO PRENATAL EDUCATION AND ZAOJIAO EARLY EDUCATION ARE HARDLY UNIQUE TO CHINA BUT IN THIS NATION THE TREND REFLECTS MORE THAN PARENTAL AMBITIONS IT IS ALSO THE OFFSPRING OF A CAMPAIGN BY HEALTH OFFICIALS AND HOSPITALS TO ENHANCE THE MASSES AS PART OF THIS CAMPAIGN THE GOVERNMENT IS WORKING ON A LAW THAT IN DRAFT FORM CALLS FOR ABORTIONS AND STERILIZATIONS TO REDUCE THE INCIDENCE OF BIRTH DEFECTS CONTROLLING POPULATION GROWTH AND RAISING THE QUALITY OF THE PEOPLE ARE TWO BASIC POLICIES OF CHINA SAYS DR SUNG WEIBING OF TIANTAN HOSPITAL PRENATAL EDUCATION SETS A VERY GOOD FOUNDATION FOR THE FUTURE EDUCATION OF OUR CHILDREN SO OF COURSE THAT'S GOOD FOR CHINA THE RESPONSE HAS BEEN STRONGEST IN LARGE CITIES AND ALONG THE PROSPEROUS COAST WHERE NEWLY MONEYED COUPLES ARE EAGER TO GIVE THEIR CHILDREN OPPORTUNITIES THEY NEVER HAD HOSPITALS HOLD CLASSES FOR EXPECTING PARENTS AND CONSCIENTIOUS GRANDPARENTS AND SELL THE TAPED LESSONS THAT WOMEN LIKE MS WEI USE AT HOME NEWSPAPERS AND TELEVISION RUN FREQUENT FEATURES ON FETAL AND INFANT SCHOLASTICS FOR PREGNANT WOMEN AND THE CHILDREN THEY CARRY IT ALL MEANS SUBMITTING TO A RIGOROUS DAILY REGIMEN OF LESSONS MASSAGES FLASHING LIGHTS INTENDED TO STIMULATE EYESIGHT AND BRAIN ACTIVITY WHEN TRAINED ON THE FETUS AND EVEN GAZING AT PORTRAITS OF BEAUTIFUL PEOPLE AND THAT'S JUST THE BEGINNING ONCE THE BABY HAS GRADUATED FROM WOMB TO CRIB THE COURSE LOAD CAN GET WEIGHTY TANG DYNASTY POETRY CHINESECHARACTER RECOGNITION MUSIC AND FURTHER LANGUAGE TRAINING ENGLISH IS PREFERRED AMONG OTHER SUBJECTS SOME CHINESE FEAR THAT IN PURSUING PERFECT PROGENY THE NATION RISKS CREATING A MEGENERATION PRESSURED TO EXCEL BUT LACKING PERSONAL VALUES FROM THE BEGINNING SUCCESS IS BEING DEFINED FOR THESE KIDS ONLY AS GETTING HIGHPOWERED JOBS MAKING LOTS OF MONEY OR BECOMING FAMOUS SAYS MA RONG ASSOCIATE DIRECTOR OF BEIJING UNIVERSITY'S INSTITUTE OF SOCIOLOGY AND ANTHROPOLOGY THEY BECOME DEPRESSED IF THEY CAN'T BECOME HIGHLEVEL OFFICIALS THIS PLACES A HEAVY BURDEN ON THEM BECAUSE THEY DON'T HAVE ANY TIME TO ACT LIKE KIDS FOR MOST CHINESE THOUGH THE NEED TO BREED A BETTER BABY OUTWEIGHS ANY FEAR OF REARING A NEUROTIC OVERACHIEVER THAT'S THE CASE WITH DI LANFENG IF MY DAUGHTER HAS TALENT WON'T SHE HAVE EVERYTHING ASKS THE 25YEAROLD NURSE NOW IN HER NINTH MONTH MS DI WANTS BEAUTY CUTE WITH BIG EYES AS WELL AS BRAINS FOR THE DAUGHTER NICKNAMED TIANTIAN THAT HER DOCTOR TOLD HER SHE WILL HAVE SOME PRENATAL PUNDITS SAY PREGNANT WOMEN WHO STARE AT PICTURES OF ALLURING PEOPLE WILL LIKELY HAVE GOODLOOKING BABIES SO SHE HAS DECORATED HER APARTMENT WITH POSTERS OF WIDEEYED CHINESE INFANTS HONG KONG POP SINGERS AND BLOND COUPLES STROLLING ALONG BEACHES I MOSTLY LOOK AT THE POSTERS WHEN I FEEL DOWN SHE SAYS BUT I WANT MY CHILD TO BE PRETTY SO I'VE GOT SOME CUTE BABY POSTERS UP TOO MS DI ALSO WANTS TO DEVELOP HER DAUGHTER'S EAR FOR MUSIC SO FOUR OR FIVE TIMES A DAY SHE TURNS ON TAPED NURSERY SONGS OR CHINESE EASY LISTENING ON THE RADIO TO ROUND OUT HER FETUS'S CHARACTER I TELL TIANTIAN THREE TIMES BEFORE I GO TO BED EACH NIGHT TO GROW UP SMARTER' AND GROW UP PRETTIER' MS DI LAUGHS A LITTLE EMBARRASSED SOCIETY HAS CHANGED AND COMPETITION IS MUCH TOUGHER THAN IT WAS WHEN I WAS GROWING UP KEEPING UP WITH THE NEIGHBORS IS DEFINITELY A FACTOR BEHIND THE PRENATALED CRAZE JEWELRYSHOP MANAGER GUO JINGYIAN PROUDLY RELATES THE SUPERIOR PROGRESS OF HER DAUGHTER ALSO CALLED TIANTIAN THANKS TO TAPED LESSONS TUMMY MASSAGES AND ONEWAY CONVERSATIONS BETWEEN MOTHER AND FETUS TIANTIAN MS GUO SAYS COULD HOLD HER OWN BOTTLE AT THREE MONTHS AND CRAWL AT SIX MONTHS A FULL MONTH BEFORE THE AVERAGE UNSCHOOLED BABY NOW AT 11 MONTHS SHE INDICATES HER AGE BY HOLDING UP A FINGERNOT THAT SHE HAS A SYSTEM FOR COUNTING HIGHER THAN 10 BUT JUST TO SHOW SHE IS ALMOST ONE YEAR OLD THE BABIES OF MY COLLEAGUES AND FRIENDS ARE ESPECIALLY SLOW THE 26YEAROLD SAYS YOU ASK THEM HOW OLD THEY ARE AND THEY HAVE NO IDEA WHAT YOU'RE TALKING ABOUT SOMETIMES THE EXTENDED FAMILY GETS INVOLVED LAST YEAR WHILE 27YEAROLD WANG XIMENG WAS PREGNANT HER HUSBAND AND HER PARENTS WOULD GATHER ROUND HER TO TALK TO THE FETUS IT WAS LIKE SHE WAS SITTING HERE WITH US SAYS MS WANG NOW THE MOTHER OF FOURMONTHOLD MINGMING GAO WENDI A THOUGHTFUL NINEMONTHOLD WITH SPIKY HAIR CAN RECOGNIZE ALMOST ANY OBJECT IN HER HOUSE SAYS PROUD MOM LI WENWEN HOLDING WENDI IN HER ARMS MS LI NAMES SEVERAL OBJECTS DOOR MIRROR HUMIDIFIER EACH TIME WENDI SCANS THE ROOM UNTIL SHE FIXES HER GAZE ON THE RIGHT ONE MS LI WHO IS TAKING TWO YEARS' LEAVE FROM HER JOB AS A COMPUTER SCIENTIST HAS LABELED THINGS IN HER HOUSE IN CHINESE ENGLISH AND JAPANESE AROUND THE BABY'S CRIB HANG FIVE TANG DYNASTY POEMS WRITTEN IN BIG CHINESE CHARACTERS THE ROMAN ALPHABET AND THE NUMBERS ONE THROUGH 10 BESIDES GOING OVER THESE SEVERAL TIMES EACH DAY WITH WENDI MS LI BEFORE EACH MEAL RECITES A POEM ABOUT NOT WASTING FOOD DURING HER PREGNANCY THE EMPHASIS WAS ON BABYBETTERMENT THROUGH NUTRITION I ATE WHATEVER FOOD PEOPLE SAID WAS GOOD MS LI SAYS APPLES AND TOMATOES FOR WHITE SKIN AND VEGETABLES BECAUSE I HEARD THEY'RE GOOD FOR PUTTING MORE WAVES IN THE BRAIN 9402080078 940207 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 9402080077 940208 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 333 30 TO 59 DAYS 335 60 TO 89 DAYS 340 60 TO 119 DAYS 345 120 TO 149 DAYS 347 150 TO 179 DAYS 350 180 TO 249 DAYS 355 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 340 30 DAYS 343 60 DAYS 348 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 269 TWO MONTHS 274 THREE MONTHS 291 SIX MONTHS 328 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 327 30 DAYS 333 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 7/16 3 5/16 TWO MONTHS 3 1/2 3 3/8 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 1/2 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 588 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 710 60 DAYS 716 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 710 60 DAYS 720 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 9402080076 940208 WHO'S NEWS JONES INTERNATIONAL LTD JONES INTERNATIONAL LTD ENGLEWOOD COLO BERNARD LUSKIN 55 YEARS OLD WAS NAMED TO THE NEW POST OF CHIEF EXECUTIVE OFFICER OF JONES INTERACTIVE SYSTEMS INC A DIGITAL PUBLISHING AND INTERACTIVE MEDIA UNIT OF THIS TELECOMMUNICATIONS COMPANY MR LUSKIN WILL ALSO SERVE AS VICE CHAIRMAN OF MIND EXTENSION UNIVERSITY A CABLE EDUCATION CHANNEL CONTROLLED BY JONES INTERNATIONAL MR LUSKIN WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF PHILIPS INTERACTIVE MEDIA AND PRESIDENT OF PHILIPS MEDIA EDUCATION & REFERENCE PUBLISHING GROUP BOTH OF WHICH ARE UNITS OF PHILIPS ELECTRONICS NV 9402080075 940208 CORRECTIONS & AMPLIFICATIONS MARUKO INC ISN'T A SUBSIDIARY OF KAJIMA CORP AS STATED IN LAST TUESDAY'S INDUSTRY FOCUS ARTICLE ABOUT PURCHASES OF US HOTELS BY ETHNIC CHINESE COMPANIES MICRODYNE CORP ALEXANDRIA VA A MAKER OF COMPUTER HARDWARE AND SOFTWARE ISN'T INVOLVED IN A LAWSUIT AGAINST PHOENIX LASER SYSTEMS INC YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY IDENTIFIED THE PUBLICLY TRADED COMPANY AS BEING INVOLVED IN THE SUIT PHOENIX LASER SYSTEMS SAID CLOSELY HELD MICRODYNE INC ESCONDIDO CALIF IS THE COMPANY INVOLVED IN THE SUIT 9402080074 940208 FOREIGN EXCHANGE DOLLAR ENDS FLAT TO MARGINALLY LOWER IN WAKE OF FED MOVE TO TIGHTEN CREDIT BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS FLAT TO MARGINALLY LOWER IN QUIET TRADING YESTERDAY AS MANY PLAYERS MOVED TO THE SIDELINES AFTER TAKING LOSSES IN THE HECTIC TRADING THAT FOLLOWED THE FEDERAL RESERVE'S FEDERAL FUNDS' RATE INCREASE LAST WEEK TRADERS SAID MARKET UNCERTAINTY OVER THE POSSIBILITY OF MORE RATE BOOSTS BY THE FED AND CONTINUED TRADE TENSIONS WITH JAPAN HAVE PUT A TEMPORARY LID ON FURTHER VOLATILITY IN THE FOREIGNEXCHANGE MARKET BUT THEY ALSO NOTED THAT THE DOLLAR COULD BE HEADED FOR HIGHER GROUND AT LEAST AGAINST EUROPEAN CURRENCIES AS EVIDENCED BY THE RELATIVE LACK OF PROFITTAKING IN THE FACE OF FRIDAY'S DOLLAR SURGE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17590 MARKS UP SLIGHTLY FROM 17585 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10870 YEN DOWN FROM 10930 YEN STERLING WAS TRADING AT 14825 UP FROM 14775 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10860 YEN AND AT 17583 MARKS THERE WAS A LOT OF CARNAGE ON FRIDAY SAID THOMAS BENFER DIRECTOR OF FOREIGN EXCHANGE AT THE BANK OF MONTREAL A LOT OF OPERATORS GOT CAUGHT IN THE FED'S MOVE AND WERE MAINTAINING A LOW PROFILE YESTERDAY MR BENFER SAID TRADERS ARE STILL TRYING TO SORT OUT THE IMPLICATIONS OF THE FED'S MOVE TO PUSH UP SHORTTERM INTEREST RATES BY 025 PERCENTAGE POINT PARTICULARLY AS IT CAME IN THE FACE OF WEAK US JANUARY EMPLOYMENT DATA THE FACT THAT THE FED HAS TIGHTENED RATES COULD BE AN INDICATION OF FAIRLY STRONG ECONOMIC GROWTH COMING DOWN THE PIKE AND POSSIBLY MORE TIGHTENING BY SUMMER HE ADDED BUT MR BENFER SAID THE MARKET REMAINS UNCERTAIN WHETHER THE FED'S MOVE WAS A ONETIME PREEMPTIVE STRIKE AGAINST INFLATION OR WHETHER IT WAS JUST THE FIRST IN A SERIES OF RATE INCREASES LAWRENCE SUMMERS US TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS APPEARED TO CONDONE MORE RATE BOOSTS TRADERS SAID WHEN HE COMMENTED YESTERDAY THAT THE FED'S DECISION WILL CONTRIBUTE TO A LONG SUSTAINED RECOVERY IN THE US AND SHOULDN'T HURT US COMPETITIVENESS OVERSEAS MEANWHILE THE DOLLAR TRADED IN A TIGHT RANGE AGAINST THE YEN AS USJAPAN TRADE NEGOTIATIONS AGAIN APPEARED TO FLOUNDER PRIOR TO FRIDAY'S SUMMIT BETWEEN JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON BANK OF MONTREAL'S MR BENFER SAID THE DOLLARYEN FLUCTUATIONS ON COMMENTS BY US OFFICIALS ONCE AGAIN PROVE THAT THE YEN IS A POLITICALLY DRIVEN CURRENCY TRADERS NOTED THE YEN INITIALLY SOFTENED ON COMMENTS BY MR SUMMERS DISAVOWING US ECONOMIST C FRED BERGSTEN AN INFLUENTIAL VOICE FOR A STRONG YEN MR SUMMERS SAID MR BERGSTEN IS TOTALLY UNCONNECTED TO CLINTON ADMINISTRATION THINKING BUT THE YEN THEN GAINED ON STATEMENTS BY MR SUMMERS AND COMMERCE SECRETARY RONALD BROWN DECRYING THE PACE OF THE USJAPAN TRADE NEGOTIATIONS AND JAPAN'S RELUCTANCE TO LOWER TRADE BARRIERS 9402080073 940201 INDUSTRY FOCUS ETHNIC CHINESE COMPANIES FIND ROOM AT SOME US INNS FIRMS' CAUTION CONTRASTS WITH ILLFATED JAPANESE HOTELBUYING BINGE OF '80S BY WALL STREET JOURNAL REPORTERS SUSAN CAREY IN CHICAGO AND MIRIAM JORDAN IN HONG KONG ETHNIC CHINESE BUYERS FROM OVERSEAS ARE QUIETLY CHECKING INTO THE US HOTEL INDUSTRY AS JAPANESE INVESTORS CHECK OUT OVER THE PAST SEVERAL YEARS THESE CHINESE BUYERS MOSTLY FROM HONG KONG TAIWAN AND SOUTHEAST ASIA HAVE TAKEN ADVANTAGE OF A SLUMP IN THE US MARKET TO SNAP UP HOTELS AT PRICES FAR BELOW REPLACEMENT COSTS IN SOME CASES THEY ARE BUYING HOTELS FROM JAPANESE INVESTORS WHOSE FINANCIAL TROUBLES HAVE FORCED THEM TO RETREAT FROM THE MARKET THE CHINESE BUYERS HAVE A DIFFERENT APPROACH FROM THE JAPANESE WHO WENT ON A US HOTELACQUISITION BINGE IN THE 1980S THE CHINESE ARE MORE CAUTIOUS SAYS KEVIN MAHONEY OF LODGING CONSULTANT KENNETH LEVENTHAL & CO OF LOS ANGELES THEY'RE BUYING EXISTING MIDMARKET HOTELS WITH PROVEN CASH FLOW AND THEY'RE PAYING CASH BY CONTRAST THE JAPANESE SPREE WAS MARKED BY INFLATED PRICES LOTS OF DEBT AND A HANDSOFF APPROACH TO MANAGEMENT WITH THE SLUMP OF THE PROPERTY MARKET MANY OF THE JAPANESE ACQUISITIONS IN THE US TURNED INTO FINANCIAL BLACK HOLES FIVE YEARS AGO I WAS SEARCHING TOKYO AND OSAKA FOR INVESTORS FOR US HOTELS SAYS TOM TIMMONS AN INVESTMENT ADVISER FOR THE PROPERTYCONSULTING FIRM VIGERS HONG KONG LTD NOW WE ARE LOOKING FOR SELLERS IN JAPAN AND BUYERS IN SOUTHEAST ASIA MANY OF THE NEW BUYERS AMASSED FORTUNES IN OTHER INDUSTRIES BACK HOME IN ASIA OVER THE PAST DECADE NOW THEY ARE SEEKING TO HEDGE THEIR BETS SOME ARE JUST BEGINNING TO DIVERSIFY INTO OFFSHORE INVESTMENTS SAYS MR TIMMONS THE US IS POLITICALLY STABLE RELATIVE TO OTHER MARKETS AND US REAL ESTATE HAS BEEN IN THE DUMPS FOR THE PAST THREE YEARS WHILE THE BARGAINS LAST ETHNIC CHINESE ARE BUYING EVERYTHING FROM BUDGET MOTELS IN TEXAS TO ALLSUITE HOTELS IN CHICAGO TO HISTORIC PROPERTIES IN NASHVILLE TENN IN THE PAST TWO YEARS ALONE THEY HAVE SPENT AT LEAST 15 BILLION ON US HOTELS IN TRANSACTIONS FOR WHICH THE PRICES CAN BE DETERMINED THE REAL FIGURE IS PROBABLY FAR HIGHER THAN THAT MANY SALES AREN'T REGISTERED AS FOREIGN INVESTMENTS OR ARE HANDLED THROUGH INTERMEDIARIES ETHNIC CHINESE HAVE BEEN BIGGER BUYERS RECENTLY THAN EVEN EUROPEANS WHO LONG HAVE BEEN ACTIVE IN THE US SAYS KEN WILSON A BOSTONBASED SENIOR VICE PRESIDENT OF LANDAUER HOSPITALITY ADVISORY GROUP THE NEW ASIAN BUYERS ARE FINDING BARGAINS THAT WOULD HAVE BEEN UNTHINKABLE JUST FIVE OR SIX YEARS AGO TODAY REFLECTING OVERBUILDING THE US SAVINGSANDLOAN CRISIS AND A CUTBACK IN TRAVEL MANY HOTELS ARE ON THE BLOCK AT 30 TO 40 OF THEIR REPLACEMENT COST CENTRAL PLAZA HOTEL GROUP A PUBLICLY TRADED BANGKOK COMPANY CONTROLLED BY A THAICHINESE FAMILY LAST SEPTEMBER PURCHASED A NEW 178ROOM HOTEL AT LOS ANGELES INTERNATIONAL AIRPORT FROM THE JAPANESE OWNERDEVELOPER FOR 10 MILLION IN CASH THE JAPANESE COMPANY MARUKO INC A SUBSIDIARY OF THE CONSTRUCTION CONCERN KAJIMA CORP HAD SUNK 16 MILLION INTO THE HOTEL BUT NEVER OPENED IT THE SAME MONTH MUI GROUP A MALAYSIAN CONGLOMERATE HEADED BY AN ETHNIC CHINESE BOUGHT FOR 18 MILLION THE 300ROOM MARRIOTT HOTEL IN HOUSTON ALONG WITH AN ADJACENT OFFICE BUILDING AND PARKING GARAGE MUI SAYS THE REPLACEMENT VALUE FOR THE PROPERTIES IS 50 MILLION EVEN COMPANIES FROM MAINLAND CHINA ARE LOOKING AROUND YUKUO TAKENAKA PRESIDENT OF LOS ANGELESBASED TAKENAKA & CO SAYS HIS INVESTMENT COMPANY'S MAINLAND CLIENTS ARE SEEKING INDIVIDUAL US HOTELS TO PURCHASE AT LEAST ONE MAINLAND CHINESE COMPANY ALREADY HAS TAKEN THE LEAP IN 1992 AIR CHINA THE BEIJINGBASED AIRLINE PURCHASED THE 150ROOM RAMADA INN AT SAN FRANCISCO INTERNATIONAL AIRPORT BUT THE BULK OF THE CHINESE BUYERS CONTINUE TO COME FROM HONG KONG AND TAIWAN SAM CHANG A USBASED TAIWANESE WHO REPRESENTS INVESTORS FROM HONG KONG AND TAIWAN IS AN EXAMPLE MR CHANG AND HIS PARTNERS SINCE 1991 HAVE BOUGHT 13 HOTELS IN THE NORTHEASTERN US THEIR INVESTMENT VEHICLE ORIENT HOTELS GROUP OF STAMFORD CONN SPENT 100 MILLION ON THE ACQUISITIONS HALF IN CASH BUT IN MANY CASES NOT A LOT OF CASH MR CHANG SAYS THEY PAID 43 MILLION TO BUY THE 380ROOM HOLIDAY INN CROWNE PLAZA IN STAMFORD A HOTEL THAT WOULD COST ABOUT 30 MILLION TO BUILD TODAY THE CHENG FAMILY OF HONG KONG WHOSE PUBLICLY TRADED NEW WORLD DEVELOPMENT CO ALREADY OWNS RENAISSANCE HOTELS & RESORTS LAST SUMMER PURCHASED STOUFFER HOTELS & RESORTS FROM NESTLE SA THE 38UNIT STOUFFER CHAIN WHICH INCLUDES A BIG CHUNK OF REAL ESTATE WENT FOR MORE THAN 1 BILLION ACCORDING TO A SOURCE CLOSE TO THE CHENGS ANOTHER BIG PLAYER FROM HONG KONG WHARF HOLDINGS LTD WHICH ALREADY OWNED THE OMNI HOTELS CHAIN IN THE US HAS GROWN THE PAST TWO YEARS THROUGH PURCHASES OF POSH HOTELS IN BOSTON HOUSTON DALLAS NEW YORK AND CHICAGO OVERSEAS CHINESE ARE EXPECTED TO CONTINUE SHOPPING FOR AT LEAST ANOTHER YEAR OR MORE BUT NOBODY EXPECTS THE CHINESE TO GET CAUGHT UP IN BIDDING FEVER AND OVERPAY WHILE THE US HOTEL BUSINESS REMAINS WEAK THE FUNDAMENTALS ARE LOOKING UP FEWER THAN 200 NEW HOTELS STARTED CONSTRUCTION LAST YEAR COMPARED WITH 1600 IN 1986 MANAGEMENT CONTRACTS HAVE BECOME MORE ADVANTAGEOUS TO HOTEL OWNERS ROOM RATES AND OCCUPANCY LEVELS ARE CREEPING BACK UP AND BJORN HANSON HEAD OF THE HOSPITALITY PRACTICE AT COOPERS & LYBRAND PREDICTS THAT THE NEXT COUPLE OF YEARS WILL BE VERY GOOD FOR THE INDUSTRY BUT FOR NOW PURCHASE PRICES REMAIN LOW AND PROFITS ARE OFTEN ILLUSORY JAMES CHOI VICE CHAIRMAN OF RENAISSANCE CONCEDES THAT THE COMPANY HASN'T YET PRODUCED PROFITS FOR NEW WORLD WHICH MADE THE ACQUISITION FOUR YEARS AGO BUT THE PAIN HAS BEEN INCURRED HE SAYS THERE WILL BE A TURNAROUND WE HAVE BEEN CONTAINING OUR LOSSES LIKEWISE WHARF ISN'T FINDING OMNI A HUGE MONEYSPINNER WHILE THE CHINESE GAIN KUDOS FOR SNIFFING OUT GOOD VALUES AND APPLYING KEEN FINANCIAL CONTROL OVER THEIR INVESTMENTS SOME OBSERVERS QUESTION THEIR EXPERIENCE IN THE US AND IN THE LODGING INDUSTRY I'M SURE THEY WILL BUY AT THE RIGHT PRICE SAYS MR TAKENAKA THE LOS ANGELES INVESTMENT BANKER BUT WHETHER THEY BUY THE RIGHT PROPERTY IS ANOTHER QUESTION AND WHAT HAPPENS AFTER THE PURCHASE SUCH CONCERNS ARE BEING ADDRESSED THOUGH A FEW MONTHS AGO THE TAIWANESEAMERICAN HOTELMOTEL CHAMBER OF COMMERCE WAS ESTABLISHED TO HELP TAIWANESE NEW TO THE MARKET LAST APRIL SOME FORMER HILTON INTERNATIONAL EXECUTIVES FORMED A TAIPEIBASED HOTELMANAGEMENT COMPANY TO WORK WITH ETHNIC CHINESE BUYING HOTELS AND MANY ASIAN INVESTORS SIMPLY BUY LOCAL TALENT AND FORM THEIR OWN MANAGEMENT COMPANIES MR CHANG SAYS I'M THE ONLY ORIENTAL ON THE EXECUTIVE COMMITTEE OF HIS ORIENT HOTELS GROUP WHICH EXPECTS TO TURN A PROFIT THIS YEAR HIS GROUP IS CONTINUING TO SHOP FOR MORE PROPERTIES MR CHANG SAYS HE TELLS BROKERS I DON'T WANT TO BUY ANY MORE HOTELS BUT I DON'T MIND STEALING SOME MARUKO INC ISN'T A SUBSIDIARY OF KAJIMA CORP AS STATED IN LAST TUESDAY'S INDUSTRY FOCUS ARTICLE ABOUT PURCHASES OF US HOTELS BY ETHNIC CHINESE COMPANIES 9402080072 940208 F&M TO ACQUIRE PNB FINANCIAL WINCHESTER VA BANK HOLDING COMPANY F&M NATIONAL CORP SAID IT AGREED TO ACQUIRE PNB FINANCIAL CORP WARRENTON VA FOR 4115 A SHARE IN F&M STOCK IN A TRANSACTION VALUED AT ABOUT 21 MILLION THE TRANSACTION IS SUBJECT TO APPROVAL OF REGULATORY OFFICIALS AND PNB SHAREHOLDERS PNB IS THE HOLDING COMPANY OF PEOPLES NATIONAL BANK WHICH HAD YEAREND TOTAL ASSETS OF 981 MILLION F&M NATIONAL HAD ASSETS OF 14 BILLION 9402080071 940208 BUSINESS BRIEF CPC EARNINGS ROSE 77 IN FOURTH PERIOD ON DECLINE IN SALES ENGLEWOOD CLIFFS NJ CPC INTERNATIONAL INC SAID FOURTHQUARTER NET INCOME ROSE 77 AFFECTED BY A ONETIME CHARGE A YEAR EARLIER THE FOOD COMPANY SAID QUARTERLY EARNINGS ROSE TO 1251 MILLION OR 82 CENTS A SHARE FROM 708 MILLION OR 46 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER PERIOD INCLUDED A CHARGE OF 468 MILLION OR 31 CENTS A SHARE FROM DISCONTINUED OPERATIONS WITHOUT THE CHARGE THE COMPANY SAID PROFIT WAS UP 64 FOURTHQUARTER SALES DROPPED 24 TO 175 BILLION FROM 179 BILLION THE COMPANY SAID SALES WERE AFFECTED BY LOWER VALUES OF EUROPEAN EXCHANGE RATES DESPITE GOOD VOLUME IMPROVEMENT FOR THE YEAR EARNINGS MORE THAN DOUBLED TO 4545 MILLION OR 295 A SHARE FROM 2238 MILLION OR 141 A SHARE IN 1992 THE EARLIER YEAR INCLUDED 2068 MILLION OR 137 A SHARE IN ONETIME CHARGES FOR DISCONTINUED OPERATIONS AND ACCOUNTING ADJUSTMENTS WITHOUT THE CHARGES THE COMPANY SAID PROFIT INCREASED 56 SALES ROSE 21 TO 67 BILLION FROM 66 BILLION IT'S REASONABLE TO EXPECT THAT CPC'S EARNINGS GROWTH RATES CAN MOVE TOWARD AND INTO THE DOUBLE DIGITS AS THE YEAR PROGRESSES ASSUMING EUROPEAN CURRENCIES WON'T WEAKEN COMPARED WITH LAST YEAR SAID CR SHOEMATE CPC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9402080070 940208 BUSINESS BRIEF GEOTEK INDUSTRIES COMPANY SOROS PLAN TO BUY 30 STAKE IN MEXICAN FIRM GEOTEK INDUSTRIES MONTVALE NJ AND FINANCIER GEORGE SOROS SAID THEY AGREED TO ACQUIRE A 30 INTEREST IN A MEXICAN WIRELESS COMMUNICATIONS COMPANY FOR ABOUT 24 MILLION MR SOROS AND GEOTEK ALSO A WIRELESS COMMUNICATIONS COMPANY WILL PAY 20 MILLION IN CASH FOR RADIO CEL SA DE CV IN ADDITION GEOTEK WILL ISSUE THE MEXICAN COMPANY ABOUT 270000 SHARES OF COMMON STOCK AND OFFER IT SOME OF GEOTEK'S TECHNOLOGY RADIO CEL HAS A LICENSE TO PROVIDE WIRELESS COMMUNICATIONS SERVICE IN MEXICO CITY MONTERREY GUADALAJARA AND OTHER METROPOLITAN AREAS 9402080069 940208 TECHNOLOGY ADVANCED MICRO SETS ACCORD WITH DIGITAL TO MAKE 486 CHIPS SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SAID IT REACHED AN AGREEMENT WITH DIGITAL EQUIPMENT CORP UNDER WHICH DIGITAL WILL HELP IT PRODUCE 486 MICROCHIPS DIGITAL WILL PRODUCE WAFERS AT ITS FACILITY IN SOUTH QUEENSFERRY SCOTLAND THAT WILL BE USED BY ADVANCED MICRO TO MEET GROWING DEMAND FOR ITS 486 CHIPS THE COMPANY SAID ADVANCED MICRO MAKES CHIPS THAT ARE COMPATIBLE WITH INTEL CORP'S FLAGSHIP 486 CHIPS USED IN TODAY'S MOST POPULAR PERSONAL COMPUTERS ADVANCED MICRO IS EMBROILED IN A SERIES OF LEGAL DISPUTES WITH INTEL INCLUDING THE RETRIAL OF A COPYRIGHTINFRINGEMENT LAWSUIT FILED BY INTEL WHICH ALLEGES AMD HAS ILLEGALLY COPIED ITS CHIPS INITIAL SHIPMENTS OF ADVANCED MICRO 486 CHIPS MADE FROM WAFERS PRODUCED BY DIGITAL ARE EXPECTED IN THE FOURTH QUARTER BY 1995 THE COMPANY EXPECTS TO BE PRODUCING TWO MILLION UNITS A YEAR AS A RESULT OF THE AGREEMENT WITH DIGITAL THE AGREEMENT THE FIRST OF ITS KIND FOR AMD'S MICROPROCCESSOR BUSINESS IS TO LAST TWO YEARS WITH AN OPTION FOR AN EXTENSION AT THE END OF THAT PERIOD AN AMD SPOKESMAN SAID DEMAND FOR THE COMPANY'S 486 CHIPS EXCEEDS THE FOUR MILLION UNITS A YEAR IT CURRENTLY PRODUCES THE COMPANY IS BUILDING A FACTORY IN TEXAS THAT ISN'T EXPECTED TO BE IN VOLUME PRODUCTION UNTIL THE END OF NEXT YEAR 9402080068 940208 THE CLINTON BUDGET BUDGET SQUEEZE CLINTON WOULD CUT MONEY FOR PROGRAMS DEMOCRATS CHERISH DEFICITS AND SPENDING CAPS MEAN THAT HE ONLY CAN MOVE FUNDS AROUND FEWER BUSES MORE HIGHWAYS BY DAVID WESSEL AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CALL IT RONALD REAGAN'S REVENGE THE WHOPPING DEFICIT HE LEFT BEHIND TOGETHER WITH BUSHERA CAPS ON FEDERAL SPENDING HAS FORCED BILL CLINTON TO ADOPT MANY OF HIS PREDECESSORS' SPENDING CUTS TO PAY FOR WATEREDDOWN DEMOCRATIC SPENDING INCREASES THE RESULT IS A 15 TRILLION BUDGET THAT IN THE MIDST OF ONE OF THE COLDEST WINTERS IN DECADES CALLS FOR SPENDING 40 LESS NEXT FISCAL YEAR THAN THE GOVERNMENT IS NOW SPENDING TO HELP POOR PEOPLE PAY HEATING BILLS THE PROPOSED BUDGET ALSO WHACKS 25 FROM SUBSIDIES FOR URBAN TRANSIT SYSTEMS IT GORES A PROGRAM TO RENOVATE DECREPIT HOUSING PROJECTS AT THE SAME TIME MR CLINTON SEEKS 80 MORE MONEY FOR THE CENTERPIECE OF HIS INDUSTRIAL POLICY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY HE ASKS FOR 25 MORE FOR LEGAL SERVICES FOR THE POOR AND HE PROPOSES TO SUBSTANTIALLY INCREASE SPENDING ON TRAINING PROGRAMS FOR DISLOCATED WORKERS BUT AS MR CLINTON NOTED IN HIS INTRODUCTION TO THE BUDGET EXCEPT IN EMERGENCIES WE CANNOT SPEND AN ADDITIONAL DIME ON ANY PROGRAM UNLESS WE CUT IT FROM ANOTHER PART OF THE BUDGET A DEMOCRAT WITH AMBITIOUS PLANS TO SPEND MORE ON EDUCATION TRAINING TECHNOLOGY PUBLIC HEALTH AND INFRASTRUCTURE ARRIVES AT THE WHITE HOUSE AND FINDS THERE ISN'T ANY WAY HE CAN SPEND MORE WITHOUT SPENDING LESS ON THE VERY PROGRAMS THAT DEMOCRATS TRIED TO PROTECT FROM REPUBLICAN PRESIDENTS FOR 12 YEARS YOU HAVE TO FIND IT ELSEWHERE AND THAT ELSEWHERE' IS THE HARD PART SAYS BUDGET DIRECTOR LEON PANETTA YOU CAN SAY IT'S NOT A HIGHPRIORITY PROGRAM' BUT TO SOME MEMBER OF CONGRESS OR CONSTITUENCY IT IS THEIR HIGH PRIORITY MR CLINTON'S BUDGET CONCENTRATES ON HIS PLANS TO SHIFT AROUND THE HALFTRILLION DOLLARS THAT CONGRESS APPROPRIATES ANNUALLY TO COVER EVERYTHING FROM BUILDING SUBMARINES TO PAYING SECRET SERVICE AGENTS IT IS THESE OUTLAYS AS OPPOSED TO SPENDING ON BENEFITS SUCH AS SOCIAL SECURITY AND MEDICARE THAT IS SUBJECT TO SPENDING CAPS CODIFIED BY CONGRESS IN RECENT YEARS NOT COUNTING EMERGENCIES SUCH AS THE CALIFORNIA EARTHQUAKE THE SPENDINGCAP LAWS FORCE THE GOVERNMENT TO SPEND 77 BILLION LESS FOR THESE PURPOSES NEXT YEAR THE FIRST SUCH DECLINE SINCE 1969 THESE AREN'T THE KIND OF CUTS WHERE YOU END UP SPENDING MORE MONEY MR CLINTON SAID REFERRING TO THE STANDARD WASHINGTON PRACTICE OF LABELING AS CUTS WHAT ARE MERELY REDUCTIONS IN PROJECTED INCREASES THESE ARE TRUE CUTS WHERE YOU ACTUALLY SPEND LESS MR CLINTON'S CHALLENGE IS TO CONVINCE CONGRESS AND THE PUBLIC THAT THIS DEMOCRAT CAN CUT WHILE STILL CARING HE HAS FRAMED THE BUDGET AS A SERIES OF CHOICES WHILE CUTTING FROM PROGRAMS FOR THE POOR HE PROMISES TO BETTER TARGET THE REMAINING RESOURCES HE WANTS TO SPEND LESS TO SUBSIDIZE TODAY'S CONSUMPTION SUCH AS AID TO URBAN BUS LINES AND MORE ON INVESTMENTS FOR TOMORROW SUCH AS HIGHWAYS MR CLINTON EVEN HAD TO CUT FROM HIS OWN INVESTMENT AGENDA OF A YEAR AGO HIGHSPEED RAIL ONCE CONCEIVED AS A BILLIONDOLLAR PROGRAM IS A SHADOW OF ITS FORMER SELF IN THE NEW BUDGET AND THE CUTS IN SPENDING ON PUBLIC HOUSING ARE AT ODDS WITH HIS CAMPAIGN PROMISES LAST YEAR MR CLINTON TRIED TO AVOID SPENDING CAPS WITH HIS STIMULUS SPENDING PLAN AND A PLAN TO RAISE THE CAPS A BIT WHEN BOTH THOSE MOVES FAILED HE MANAGED TO SQUEEZE THE DEFENSE BUDGET THAT MR BUSH LEFT BEHIND TO FUND DOMESTIC SPENDING NEITHER WAS AN OPTION THIS YEAR ADJUSTED FOR INFLATION NEXT YEAR'S DEFENSE BUDGET WILL BE THE SMALLEST SINCE 1981 HE HAD TWO CHOICES SAYS ALLEN SCHICK A UNIVERSITY OF MARYLAND PROFESSOR AND BUDGET EXPERT HE COULD KNOCK OUT A COUPLE OF BIG PROGRAMS HIGH VISIBILITY BIG IMPACT 25 BILLION OVER FIVE YEARS OR HE COULD KNOCK OUT LOTS OF TINY PROGRAMS AT FIRST THE WHITE HOUSE BUDGET OFFICE LEANED TOWARD THE FIRST OPTION SUGGESTING FOR INSTANCE THAT THE PRESIDENT ELIMINATE SUBSIDIES TO URBAN TRANSIT SYSTEMS AND THE LOWINCOME HEATINGASSISTANCE PROGRAM BUT WITH AN EYE TOWARD WHAT WAS MOST LIKELY TO SUCCEED ON CAPITOL HILL MR CLINTON OPTED FOR THE SECOND THE BIG WINNERS ARE THE DEPARTMENTS OF JUSTICE COMMERCE EDUCATION AND TRANSPORTATION WHICH OVERSEE MANY OF THE INVESTMENT PROGRAMS THAT ARE MR CLINTON'S PRIORITIES AND HIS NEWFOUND ENTHUSIASM FOR SPENDING HEAVILY TO FIGHT CRIME THE BIGGEST LOSERS INCLUDE THE DEPARTMENTS OF ENERGY IN PART BECAUSE SOME OF ITS BUDGET GOES FOR NUCLEAR WEAPONS AGRICULTURE AND STATE WE'VE SEEN MOST OF THE PROPOSED CUTS BEFORE REPUBLICAN SENATE LEADER BOB DOLE OF KANSAS SAID YESTERDAY BUT CONGRESSIONAL DEMOCRATS REFUSED TO GO ALONG WHEN A REPUBLICAN ADMINISTRATION WIELDED THE BUDGET KNIFE THIS IS NOT A SOMETHINGFOREVERYONE BUDGET EXERCISE ADDS REP TIM PENNEY A MINNESOTA DEMOCRAT WHO IS AMONG THE LEADERS OF THE ANTISPENDING CRUSADE IN CONGRESS IT FINALLY ADMITS THAT SOME THINGS ARE MORE IMPORTANT THAN OTHERS SOME OF THE PROPOSED CUTS WON'T HAPPEN ONE EARLY CASUALTY A PROPOSED CUT IN HIGHWAY FUNDS THAT IS BURIED ON PAGE 1018 OF THE APPENDIX THE PROVISION WOULD SAVE 406 MILLION BY KILLING HIGHWAY PROJECTS THAT WERE WRITTEN INTO LAW TO SATISFY PARTICULAR MEMBERS OF CONGRESS ANTICIPATING THE PROPOSAL THE FEDERAL HIGHWAY ADMINISTRATION ALERTED STATES NOT TO SPEND ON THE TARGETED PROJECTS BUT WHEN SENATE APPROPRIATIONS CHAIRMAN ROBERT BYRD OF WEST VIRGINIA AND DEMOCRATIC LEADER GEORGE MITCHELL OF MAINE GOT WIND OF THIS THEY LEANED ON MR PANETTA EVEN THOUGH THE CUTBACK IS PRINTED IN THE BUDGET THE WHITE HOUSE HAS DROPPED THE PLAN AND WILL HAVE TO FIND THE MONEY ELSEWHERE IN ALL MR CLINTON'S BUDGET PROPOSES TO INCREASE TOTAL GOVERNMENT OUTLAYS BY 23 TO 1518 TRILLION NOT COUNTING THE COST TO FEDERAL TAXPAYERS OF THE CALIFORNIA EARTHQUAKE IN FISCAL 1995 WHICH BEGINS OCT 1 RECEIPTS WOULD RISE 84 TO 1342 TRILLION AS THE ECONOMY STRENGTHENS AND NOT COUNTING THE CIGARETTETAX INCREASE THAT MR CLINTON PROPOSES TO FINANCE HIS HEALTHCARE INITIATIVE THE ADMINISTRATION PROJECTS THAT THE FEDERAL DEFICIT EXPECTED TO BE 2348 BILLION THIS YEAR WILL DROP TO 1651 BILLION NEXT YEAR IF THE PRESIDENT'S HEALTHCARE PACKAGE PASSES AS PROPOSED OR TO 1761 BILLION IF IT DOESN'T EITHER WAY MR CLINTON BOASTED IN HIS INTRODUCTION TO THE BUDGET IT WILL BE THE FIRST TIME DEFICITS HAVE DECLINED THREE YEARS RUNNING SINCE HARRY TRUMAN OCCUPIED THE OVAL OFFICE BUT UNLESS FEDERAL HEALTHCARE SPENDING IS RESTRAINED THE BUDGET DEFICIT WILL START WIDENING AGAIN IN FISCAL 1997 AND TOP 200 BILLION IN 1999 THE WHITE HOUSE BUDGET OFFICE SAID THE ADMINISTRATION PROJECTS THAT IF THE PRESIDENT'S HEALTH PLAN IS ADOPTED HEALTHCARE SPENDING WILL BE CONTAINED AND THE DEFICIT WILL AMOUNT TO 181 BILLION IN 1999 UNLIKE PAST PRESIDENTS MR CLINTON DIDN'T USE THE BUDGET AS THE LAUNCHING PAD FOR THIS YEAR'S AGENDA HIS HEALTHCARE INITIATIVE WAS UNVEILED LAST FALL HIS PLANS FOR WELFARE REFORM AND REVAMPING OF THE SUPERFUND HAZARDOUSWASTE CLEANUP PROGRAM WILL COME LATER THE BUDGET DOES HOWEVER REVEAL THE CHOICES THAT MR CLINTON WAS FORCED TO MAKE AND WILL TRY TO GET CONGRESS TO ACCEPT HERE ARE SOME EXAMPLES FOR MR CLINTON AND MANY OF HIS ADVISERS THE WORST PART OF BUDGETING WAS DECIDING WHICH ANTIPOVERTY PROGRAMS TO CUT TO MAKE ROOM FOR SPENDING ON HIGHERPRIORITY PROGRAMS THE FAVORED PROJECTS INCLUDE THE HEAD START PROGRAM FOR LOWINCOME PRESCHOOLERS UP 21 IN SPENDING AUTHORITY A PROGRAM THAT ALSO FOUND FAVOR IN BUSH BUDGETS FEDERAL AID TO PUBLIC SCHOOLS WITH LOTS OF POOR PUPILS UP 10 AND AID FOR THE HOMELESS UP 52 THE BIG LOSERS WERE FEDERAL SPENDING TO MODERNIZE PUBLIC HOUSING DOWN 14 BUILDING HOUSING FOR THE ELDERLY DOWN 87 A PROGRAM OF HOUSING GRANTS THAT MR CLINTON TRIED TO INCREASE LAST YEAR DOWN 21 AND THE LOW INCOME HEATING ASSISTANCE PROGRAM LIHEAP THE BIGGEST PROBLEM IN ALL THIS SAYS BUDGET DIRECTOR PANETTA IS THE PERCEPTION THAT BY QUESTIONING THESE PROGRAMS WE ARE NOT AS COMMITTED TO THESE PEOPLE THAT IS NOT THE CASE THIS WAS CLEAREST IN THE PAINFUL DEBATE OVER PUBLIC HOUSING HOUSING SECRETARY HENRY CISNEROS A FORMER SAN ANTONIO MAYOR SHOWED UP WITH EXTENSIVE CHARTS TO ARGUE FOR MORE MONEY AND MADE THE POLITICAL ARGUMENT THAT THE MONEY WAS A MAJOR SIGN OF CONCERN FOR PUBLICHOUSING TENANTS SOME OF THE NATION'S POOREST PEOPLE BUT THE PRESIDENT DECIDED LIKE REPUBLICANS BEFORE HIM TO INCREASE SPENDING ON VOUCHERS THAT HELP THE POOR RENT PRIVATE HOUSING THE WHITE HOUSE ADDS THAT BILLIONS OF DOLLARS OF UNSPENT PUBLICHOUSING MONEY ARE IN THE PIPELINE LIHEAP WHICH BEGAN AFTER THE ENERGY PRICE INCREASES OF THE 1970S IS A PROGRAM THAT HAS OUTGROWN THE ORIGINAL INTENTIONS AND IS SORELY IN NEED OF REINVENTING ADMINISTRATION OFFICIALS SAY THE PROGRAM WAS ONCE TARGETED TO THE COLD NORTHEAST BUT THE WHITE HOUSE ARGUES THAT THE SPENDING FORMULA WRITTEN INTO LAW SENDS MONEY WHERE IT ISN'T NEEDED IRONICALLY IT WAS SOUTHERNERS SUCH AS NOWTREASURY SECRETARY LLOYD BENTSEN WHO FORCED THE CHANGE BUT EVEN ADMINISTRATION OFFICIALS CONCEDE THAT AFTER JANUARY'S FRIGID TEMPERATURES IN MUCH OF THE COUNTRY THIS PROPOSED CUT FACES RESISTANCE IN CONGRESS A LOT OF GOOD PROGRAMS GOT PITTED AGAINST ONE ANOTHER COMPLAINS MEG POWER OF THE NATIONAL COMMUNITY ACTION FOUNDATION WHICH REPRESENTS LOCAL GROUPS THAT DISTRIBUTE LIHEAP FUNDS IT WAS A STRANGE CHOICE FOR THIS ADMINISTRATION WHICH IS SO COMMITTED TO IMPROVING THE LIVES OF LOWINCOME CHILDREN MR CLINTON HAS NOW STATED HIS PRIORITIES CONGRESS WILL HAVE ITS OWN THE BUDGET DEBATE WILL PLAY OUT IN THE HOUSE AND SENATE APPROPRIATIONS COMMITTEES WHICH HAVE IMMENSE DISCRETION IN ALLOCATING FUNDS BY CHANGING THE ALLOCATION AMONG THE VARIOUS SUBCOMMITTEES EACH OF WHICH IS RESPONSIBLE FOR SETTING THE SPENDING LEVELS FOR A PARTICULAR PROGRAM THE COMMITTEE LEADERSHIP CAN TURN THE TABLES AND IN EFFECT PIT THE PRESIDENT'S PROGRAMS AGAINST ONE ANOTHER TAKE THE HOUSE AND SENATE SUBCOMMITTEES FOR STATE JUSTICE AND COMMERCE THE PRESIDENT'S BUDGET WOULD GIVE IT AN 186 INCREASE IN SPENDING AUTHORITY A REFLECTION OF MR CLINTON'S DESIRE BOTH TO HELP CITIES HIRE THOUSANDS OF NEW POLICE OFFICERS AND TO SPUR DEVELOPMENT OF NEW CIVILIAN TECHNOLOGIES BUT HIS NEW SPENDING DEPENDS ON THE PANEL'S GOING ALONG WITH HIS PLAN TO KILL DOZENS OF SMALL COMMERCE DEPARTMENT PROJECTS INVOLVING EVERYTHING FROM GREAT LAKES ZEBRA MUSSELS TO COLUMBIA RIVER HATCHERIES A SUBPLOT INVOLVES THE COMPETITION BETWEEN THE COMMERCE DEPARTMENT AND THE ENERGY DEPARTMENT'S OLDER NATIONAL LABORATORIES WHICH ARE LOOKING FOR A NEW MISSION NOW THAT THE END OF THE COLD WAR HAS WOUND DOWN NUCLEARWEAPONS RESEARCH SANDIA LABORATORY IN NEW MEXICO FOR EXAMPLE HAS TURNED ITS ENGINEERING TALENTS TOWARD BATTERY RESEARCH IMPORTANT TO AUTO MAKERS BUT MR CLINTON WOULD GIVE IT ONLY A 2 INCREASE NEXT YEAR A FRACTION OF THE INCREASE PROPOSED FOR THE ADMINISTRATION'S NEW DARLING THE COMMERCE'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY KNOWN AS NIST NIST'S BUDGET GREW 35 IN MR CLINTON'S FIRST YEAR AND HE IS ASKING FOR ANOTHER 80 RISE FOR NEXT YEAR LIFTING IT TO NEARLY 1 BILLION NIST DIRECTOR ARATI PRABHAKAR BRINGS NOT ONLY TECHNICAL EXPERTISE BUT TIES TO PENTAGON RESEARCH AGENCIES WHICH ALLOW HER AGENCY TO SHARE THE GROWING DEFENSECONVERSION BUDGET SEN ERNEST HOLLINGS A SOUTH CAROLINA DEMOCRAT WHO IS THE COMMERCE SUBCOMMITTEE CHAIRMAN IS A READY PARTNER BUT THE NATIONAL LABS ARE A MAJOR EMPLOYER IN NEW MEXICO HOME OF SEN PETE DOMENICI THE SENIOR REPUBLICAN ON BOTH THIS SUBCOMMITTEE AND THE SENATE BUDGET COMMITTEE MR DOMENICI HAS LONG PROTECTED THE LABS WORRIED ABOUT NIST'S THREAT TO THE LABS HE MOVED LAST YEAR TO THE RANKING SPOT NEXT TO MR HOLLINGS SINCE HIS CAMPAIGN DAYS MR CLINTON HAS HAMMERED HOME THE MESSAGE THAT THE GOVERNMENT MUST INVEST MORE RAISING SPENDING THAT PAYS OFF IN THE FUTURE ONE EXAMPLE IS HIS INSISTENCE THAT HIS BUDGET OFFICE DIVERT MORE MONEY THAN PLANNED TO THE TRANSPORTATION DEPARTMENT TO FINANCE HIGHWAYS AND OTHER CONSTRUCTION IN A ZEROSUM GAME THE COROLLARY OF INCREASED INVESTMENT SPENDING IS THAT SPENDING ON CONSUMPTION THE SORT OF SPENDING THAT MAKES LIFE BETTER TODAY MUST BE CUT THE BIGGEST CONSUMPTION LINE IN THE FEDERAL BUDGET IS SOCIAL SECURITY BENEFITS BUT MR CLINTON HASN'T ANY INTEREST IN TOUCHING THEM BUT IN A SERIES OF TELLING SMALL DECISIONS HE DID TRY TO REORIENT FEDERAL SPENDING TOWARD INVESTMENTS A CASE IN POINT IS THE POPULAR 800 MILLION SUBSIDY FOR URBAN TRANSIT SYSTEMS A CLEAR EXAMPLE OF FEDERAL SPENDING ON CONSUMPTION AND A PROGRAM ESPECIALLY IMPORTANT TO BUS LINES IN SMALL CITIES MR CLINTON WOULD SLASH THIS BY 25 ROD DIRIDON CHAIRMAN OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION SAYS NINE OF 10 SURVEYED MEMBERS OF HIS ORGANIZATION SAID THEY WOULD HAVE TO INCREASE FARES OR REDUCE SERVICE IN ORDER TO SURVIVE AT THE SAME TIME HOWEVER DEPUTY TRANSPORTATION SECRETARY MORTON DOWNEY SAYS THE ADMINISTRATION INCREASED PROPOSED SPENDING ON GRANTS TO HELP LOCAL TRANSIT SYSTEMS BUY NEW EQUIPMENT THE RATIONALE WAS INVESTMENT AS OPPOSED TO CONSUMPTION HE SAYS AS USUAL THERE IS MORE TO THIS THAN MEETS THE EYE BUDGET OFFICIALS NOTE THAT APPROPRIATIONS FOR OPERATING SUBSIDIES TEND TO BE SPENT RIGHT AWAY A PROBLEM BECAUSE OF THE STRINGENT CEILINGS ON FEDERAL SPENDING APPROPRIATIONS FOR CAPITAL INVESTMENT TEND TO BE SPENT IN FUTURE YEARS AND COUNT AGAINST SPENDING CEILINGS IN THOSE YEARS BUT THAT'S A PROBLEM FOR NEXT YEAR'S BUDGET 9402080067 940208 BUSINESS BRIEF KEY TRONIC CORP KEYBOARD PRICEWAR CITED FOR SECONDQUARTER LOSS CITING A PROLONGED PRICE WAR IN THE MARKET FOR COMPUTER KEYBOARDS KEY TRONIC CORP REPORTED A SECONDQUARTER LOSS AND SAID IT EXPECTS TO POST LOSSES FOR THE REST OF ITS FISCAL YEAR THE COMPUTER KEYBOARD MAKER BASED IN SPOKANE WASH SAID IT POSTED A NET LOSS OF 23 MILLION OR 28 CENTS A SHARE FOR THE QUARTER ENDED JAN 1 THAT COMPARES WITH YEAREARLIER NET INCOME OF 14 MILLION OR 16 CENTS A SHARE SALES ROSE 27 TO 413 MILLION FROM 326 MILLION A YEAR EARLIER FOR THE SIX MONTHS KEY TRONIC POSTED A LOSS OF 39 MILLION OR 48 CENTS A SHARE ON SALES OF 773 MILLION A GAIN FROM AN ACCOUNTING CHANGE RESULTED IN FIRSTHALF NET INCOME OF 48 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY POSTED NET INCOME OF 23 MILLION OR 27 CENTS A SHARE ON SALES OF 642 MILLION 9402080066 940208 AIRLINE SERVICE COMPLAINTS FELL 13 IN LATEST YEAR WASHINGTON CONSUMER COMPLAINTS ABOUT AIRLINE SERVICE DROPPED 13 LAST YEAR EVEN THOUGH FLIGHT DELAYS INCREASED SLIGHTLY THE TRANSPORTATION DEPARTMENT SAID OF THE 5985 COMPLAINTS THE TRANSPORTATION DEPARTMENT RECEIVED LAST YEAR THE BIGGEST CAUSE WAS FLIGHTS BEING DELAYED OR CANCELED IN ADDITION THE NUMBER OF COMPLAINTS FOR LOST OR MISHANDLED LUGGAGE DROPPED TO 56 PER 1000 CUSTOMERS FROM 587 COMPLAINTS IN 1992 AS IN 1992 SOUTHWEST AIRLINES HAD THE LEAST COMPLAINTS PER PASSENGER AMONG LARGE AIRLINES FOLLOWED BY DELTA AIR LINES AND NORTHWEST AIRLINES WHILE TRANS WORLD AIRLINES HAD THE MOST CONTINENTAL AIRLINES WAS THE ONLY AIRLINE WHOSE COMPLAINT PERFORMANCE WORSENED IT HAD 608 COMPLAINTS LAST YEAR COMPARED WITH 455 THE PREVIOUS YEAR LARGE AIRLINES POSTED AN ONTIME ARRIVAL RATE OF 816 IN 1993 WITH SOUTHWEST POSTING THE BEST RATE 897 AND DELTA BRINGING UP THE REAR AT 767 THE TRANSPORTATION DEPARTMENT SAID THE ONTIME RATES EXCLUDE DELAYS CAUSED BY MECHANICAL PROBLEMS 9402080065 940208 UPS AND DOWNS SCULLEY SUDDENLY QUITS NEW JOB AND ACCUSES A TOP OFFICER OF A PLOT HIS IMAGE SULLIED EXCHIEF OF APPLE SAYS PRESIDENT OF SPECTRUM MISLED HIM SOME PROFITED ON HIS NAME BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN SCULLEY WHO ASTONISHED THE HIGHTECH INDUSTRY IN OCTOBER WHEN HE JOINED A TINY WIRELESSTECHNOLOGY COMPANY THAT HAD NO PROFITS NO PROFILE AND A CHECKERED PAST JOLTED THE INDUSTRY AGAIN YESTERDAY BY ABRUPTLY QUITTING HIS NEW JOB IN RESIGNING FROM SPECTRUM INFORMATION TECHNOLOGIES INC THE FORMER CHAIRMAN OF APPLE COMPUTER INC SUMMARILY DROPPED WHAT HE HAD CALLED A LITTLE GEM THAT FELL IN MY LAP HE HAS BEEN FORCED TO ADMIT THAT HE ACCEPTED A MULTIMILLIONDOLLAR PAY PACKAGE WITHOUT KNOWING THE COMPANY WAS UNDER FEDERAL INVESTIGATION HE HAS ALL BUT GIVEN UP HIS GRAND DESIGN OF LEADING THE WIRELESS REVOLUTION AND HIS SHINING REPUTATION AS A HIGHTECH VISIONARY HAS DIMMED IN MR SCULLEY'S WAKE SPECTRUM WAS FORCED TO RESTATE RECENT FINANCIAL RESULTS YESTERDAY TURNING SLENDER REPORTED PROFITS INTO LOSSES THE COMPANY'S STOCK PRICE CRASHED FALLING TO 225 FROM 556 ON FRIDAY MR SCULLEY FILED SUIT AGAINST THE SPECTRUM EXECUTIVE WHO RECRUITED HIM IT CHARGES SPECTRUM PRESIDENT PETER CASERTA WITH FRAUDULENT MISREPRESENTATIONS AND ALLEGES WHAT AMOUNTS TO A PLOT TO REAP PROFITS ON STOCK SALES AFTER MR SCULLEY'S HIRING SENT SPECTRUM SHARES SOARING THE COMPANY RESPONDED IN A PRESS RELEASE DENYING ANY MISREPRESENTATION AND SAYING MR SCULLEY HAD BEEN FULLY AWARE OF THE CIRCUMSTANCES THAT HE NOW CITES AS HIS REASONS FOR HIS DEPARTURE ONLY TWO WEEKS AGO MR SCULLEY DENIED NEWS REPORTS THAT SPECTRUM WAS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION WHICH TURNED OUT TO BE TRUE AND THAT HE PLANNED TO RESIGN SPECTRUM LATER CONFIRMED THAT AN SEC PROBE HAD BEEN GOING ON SINCE MAY LEADING SOME INDUSTRY EXECUTIVES TO WONDER WHETHER MR SCULLEY HAD BEEN DUPED ASSOCIATES MAINTAIN THAT THE ONETIME PEPSICO INC MARKETER TURNED TECHNOLOGY GURU WAS STARTLED BY WORD OF THE SEC PROBE AND IN PARTICULAR BY THE FACT THAT MR CASERTA HADN'T DISCLOSED IT HE WAS FURTHER ALARMED LAST WEEK WHEN NEW AUDITORS BROUGHT IN AT HIS INSISTENCE AFTER SPECTRUM FIRED THE PREVIOUS FIRM IN A DISPUTE OVER ACCOUNTING PRACTICES SAID TWO QUARTERS OF RESULTS SHOULD BE RESTATED TO SHOW LOSSES BUT ASSOCIATES SAY THE LAST STRAW CAME WHEN MR SCULLEY READ NEWSPAPER REPORTS DETAILING HOW MR CASERTA AND TWO OTHER TOP SPECTRUM EXECUTIVES HAD EXERCISED STOCK OPTIONS AND IMMEDIATELY SOLD SHARES IN THE WEEKS AFTER MR SCULLEY WAS HIRED WHILE SEC FILINGS SHOW THE TRIO REAPED MORE THAN 13 MILLION IN COMBINED PROFITS THE OPTIONS PACKAGE THAT LURED MR SCULLEY TO THE COMPANY ENDED UP ALL BUT WORTHLESS IN THE NEAR TERM AS SPECTRUM'S STOCK PRICE FELL ON THE NEGATIVE HEADLINES YESTERDAY HE SAID HE WAS GIVING UP THOSE OPTIONS THE TRAVAILS AT SPECTRUM HAVE BEEN A BITTER CULMINATION FOR MR SCULLEY WHO LEFT A TOP POST AT PEPSI A DECADE AGO AND ROSE TO STARDOM IN THE TECHNOLOGY INDUSTRY LARGELY AFTER OUSTING APPLE FOUNDER STEVEN JOBS AND GUIDING THE COMPANY TO A TENFOLD RISE IN REVENUE BUT MR SCULLEY EVENTUALLY WAS ALL BUT OUSTED AS APPLE'S CHAIRMAN AS THE COMPANY'S SALES AND PROFITS SOURED HE WAS CRITICIZED FOR CREATING A SWIRL OF HIGH EXPECTATIONS FOR THE APPLE NEWTON THE HANDHELD PERSONAL COMMUNICATOR ONLY TO HAVE IT RUN A YEAR LATE AND GET PUBLICLY TRASHED FOR GLITCHES IN HANDWRITING RECOGNITION SPECTRUM WAS TO BE MR SCULLEY'S COMEBACK AND HIS VINDICATION HE BECAME INTENSELY INTERESTED AFTER A SPECTRUM TEAM DEMONSTRATED IN A MEETING IN HIS DINING ROOM HOW THE COMPANY'S WIRELESS TECHNOLOGY COULD ENABLE THE NEWTON TO SEND A WIRELESS FAX SOMETHING THE NEWTON COULDN'T DO DESPITE MR SCULLEY'S OWN PRONOUNCEMENTS WHEN IT WAS UNVEILED LAST YEAR MR SCULLEY HAD BEEN INTRODUCED TO THE MANHASSET NY CONCERN BY A FELLOW JOGGER AND FRIEND FROM HIS DAYS AT PEPSICO EXHAUSTED BY HIS RANCOROUS SPLIT WITH APPLE LAST YEAR AND EAGER TO PLOT HIS FUTURE OUTSIDE THE GOSSIP MILL IN SILICON VALLEY MR SCULLEY HAD RETREATED EAST TO HIS HOME IN GREENWICH CONN WITH HIS WIFE LEEZY AND THEIR DOGS A SHORT TIME LATER THE JOGGER LYNN PETRONELLA LINKED MR SCULLEY UP WITH HER FRIEND MR CASERTA TELLING HIM THAT MR CASERTA RAN A SMALL LONG ISLAND COMPANY THAT HAD THE SOFTWARE TECHNOLOGY TO MAKE THE NEWTON SEND MESSAGES FLAWLESSLY MR CASERTA AND A SMALL ENTOURAGE THAT INCLUDED HIS SON PETER CASERTA II DEMONSTRATED THE SPECTRUM WARES SITTING AT MR SCULLEY'S DININGROOM TABLE MR CASERTA HAD MR SCULLEY SCRIBBLE A MESSAGE ON HIS NEWTON TO PETER CASERTA LET'S MAKE SPECTRUM A SUCCESS JOHN SCULLEY MR SCULLEY THEN PUSHED A BUTTON AND SENT THE MESSAGE OVER THE CELLULAR AIRWAVES TO A FAX MACHINE ELSEWHERE IN MR SCULLEY'S HOUSE ALMOST IMMEDIATELY MR SCULLEY AND HIS LAWYERS BEGAN NEGOTIATING WITH MR CASERTA TO BECOME SPECTRUM'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY THE TIME HE ANNOUNCED HIS SURPRISING DECISION IN OCTOBER MR SCULLEY NEVER ONE TO STRIKE A HUMBLE POSE LIKENED HIS MOVE TO THAT OF ANOTHER HIGHPROFILE EXECUTIVE BARRY DILLER MR DILLER HAD QUIT AS CEO AT FOX INC AND TURNED TO HOMESHOPPING COMPANY QVC NETWORK INC LATER EMBARKING ON THE PROTRACTED FIGHT TO ACQUIRE PARAMOUNT COMMUNICATIONS INC SPECTRUM WAS TINY BY COMPARISON AND WHILE MR SCULLEY IS SAID TO HAVE STUDIED SPECTRUM'S PATENTS INTENTLY HE APPARENTLY SPENT LESS EFFORT PORING OVER THE COMPANY'S FINANCES AND ITS CONTROVERSIAL PAST HE FELT GENUINELY DUPED BY CASERTA A SPOKESWOMAN FOR MR SCULLEY WHO HAS HIRED HIS OWN PUBLICRELATIONS FIRM IN THIS FIGHT SAID YESTERDAY THE SEC PROBE AND THE INSIDER TRADING WERE THE STRAWS THAT BROKE THE CAMEL'S BACK IN HIS SUIT FILED IN FEDERAL COURT IN NEW YORK MR SCULLEY CONTENDS HE WAS DECEIVED BY CASERTA WHOSE APPARENT SHORTTERM GOAL WAS TO REAP HUGE PROFITS BY SELLING LARGE BLOCKS OF SPECTRUM STOCK DRIVEN UP IN VALUE AFTER THE ANNOUNCEMENT THAT MR SCULLEY WOULD JOIN THE COMPANY THE SUIT SEEKS 10 MILLION IN DAMAGES MR SCULLEY WAS GIVEN A MILLIONDOLLAR SALARY AND OPTIONS TO BUY 18 MILLION SHARES OVER FIVE YEARS AT THE EXERCISE PRICE OF 6125 THREE MILLION OF THOSE OPTIONS BECAME EXERCISABLE AFTER THE FIRST WEEK IN OCTOBER THE WEEK BEFORE MR SCULLEY'S APPOINTMENT WAS ANNOUNCED THAT WOULD HAVE BROUGHT HIM A PROFIT OF AS MUCH AS 15 MILLION BASED ON THE HIGH POINT OF SPECTRUM'S STOCK 11125 ON THE DAY OF THE SCULLEY ANNOUNCEMENT A TRIO OF TOP SPECTRUM INSIDERS WENT FOR THE QUICK PROFIT SEC FILINGS SHOW MR CASERTA SOLD JUST UNDER HALF OF HIS STAKE EXERCISING OPTIONS TO ACQUIRE ONE MILLION SHARES AT 113 APIECE AND THEN SELLING THEM AT AN AVERAGE 950 APIECE IN MIDNOVEMBER FOR A PRETAX PROFIT OF 84 MILLION ALBERT PANICO A VICE PRESIDENT DUMPED MORE THAN HALF OF HIS HOLDINGS SELLING 333000 SHARES AT 855 APIECE FOR A PRETAX PROFIT OF 25 MILLION SALVATORE MARINO THE CHIEF FINANCIAL OFFICER CHOPPED HIS HOLDINGS 63 EXERCISING 300000 OPTIONS AT 113 A SHARE AND SELLING AT AN AVERAGE 871 A SHARE FOR A PRETAX PROFIT OF 23 MILLION MR SCULLEY DIDN'T SELL ANYTHING HIS ANGER IN THE FALLOUT APPEARS MOST DIRECTLY AIMED AT PETER CASERTA INDEED MR SCULLEY WENT TO GREAT PAINS YESTERDAY TO SINGLE OUT MR CASERTA AS HIS NEMESIS FILING THE SUIT AGAINST THE SPECTRUM PRESIDENT INDIVIDUALLY WITHOUT SUING THE COMPANY IN A PREPARED STATEMENT BEYOND WHICH MR SCULLEY WOULDN'T COMMENT HE FURTHERED THAT OBJECTIVE WHILE MY EXPERIENCE WITH PETER CASERTA HAS BEEN TREMENDOUSLY DISAPPOINTING I FEEL OTHERS IN MANAGEMENT ARE TRYING TO DEAL WITH THE CURRENT SITUATION IN A RESPONSIBLE MANNER THAT LED SOME OBSERVERS TO ASK WHETHER MR SCULLEY MIGHT HAVE TRIED TO BORROW A PAGE FROM HIS HONEYMOONTURNEDDIVORCE AT APPLE WHERE HE SUCCEEDED IN WINNING OVER THE BOARD AND OUSTING FOUNDER JOBS SINCE TAKING ON SPECTRUM MR SCULLEY HAD TOLD SOME CONFIDANTS THAT HE WAS OUT TO CLEAR THE DECKS AND IMPOSE HIS OWN TEAM BUT IT DOESN'T APPEAR HE HAD ANYWHERE NEAR ENOUGH CLOUT TO TRY A SIMILAR OUSTER OF MR CASERTA FOR ONE THING MR CASERTA HAD ABSOLUTE CONTROL OVER THE SPECTRUM BOARD IT CONSISTS OF A SMALL HANDFUL OF LOYALISTS MOST OF WHOM WERE APPOINTED BY HIM SOME BOARD MEMBERS SERVE WITH MR CASERTA ON HIS LOCAL VOLUNTEER FIRE DEPARTMENT THE LATEST ROUND OF TROUBLE ACTUALLY BEGAN LAST MAY MR CASERTA EBULLIENT OVER SIGNING A PATENTLICENSING AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO BOASTED THAT IT WOULD BRING SPECTRUM HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTY PAYMENTS THAT SENT SPECTRUM SHARES SOARING ONLY TO HAVE THEM CRASH A DAY LATER WHEN AT&T SMACKED DOWN MR CASERTA BY PUBLICLY COUNTERING THAT THE DEAL WAS AT BEST WORTH A FEW MILLION DOLLARS THAT DAY IN MAY SPECTRUM'S SHARES SET A RECORD FOR VOLUME TRADING ON THE NASDAQ STOCK MARKET SPECTRUM BROKE ITS OWN RECORD YESTERDAY AS ITS SHARES PLUNGED ONCE MORE AS SOME 354 MILLION SHARES ALMOST HALF OF THE COMPANY'S TOTAL OUTSTANDING COMMON STOCK CHANGED HANDS THE STOCK FELL IN PART YESTERDAY BECAUSE SPECTRUM RESTATED ITS EARNINGS FOR THE PAST TWO QUARTERS INSTEAD OF NET INCOME OF 11 MILLION OR ONE CENT A SHARE WHICH THE COMPANY HAD CLAIMED FOR THE FIRST SIX MONTHS ENDED SEPT 30 1993 THE RESTATEMENT SHOWED A LOSS OF 53 MILLION OR SEVEN CENTS A SHARE ON LOWER REVENUE BACK AT ITS HIGH BEFORE THE AT&T DISAVOWAL SPECTRUM SHARES WERE AT A HEALTHY 13125 THE SEC ULTIMATELY BEGAN PROBING THE MAY CLAIM AND THE SUBSEQUENT STOCK CRASH A PROBE THAT HAS CONTINUED AND THAT THE COMPANY CONFIRMED FOR THE FIRST TIME IN RECENT WEEKS BUT THE COMPANY HAD RACKED UP A RECORD OF AGGRESSIVE PROMOTION EVEN BEFORE THE MAY INCIDENT ITS FORMER CHAIRMAN AND FOUNDER DANA VERRILL WHO WAS PUSHED OUT WHEN MR SCULLEY JOINED THE COMPANY USED TO TOUR THE COUNTRY COURTING ANALYSTS AND INVESTORS OCCASIONALLY HE GOT HELP FROM GENE R MORGAN A LOS ANGELES INVESTOR AND LARGE HOLDER OF SPECTRUM STOCK MR MORGAN A FORMER SPECTRUM BOARD MEMBER REGULARLY PROMOTED SPECTRUM STOCK ON HIS CABLE TELEVISION SHOW CHARTING THE MARKET AT 130 SOMETIMES HE HAD MR VERRILL APPEAR ON THE SHOW TO HELP HIM OUT BY JUNE 1991 MR MORGAN NOW OFF SPECTRUM'S BOARD WAS HELPING SPECTRUM OVER ANOTHER FINANCIAL HUMP ITS DELISTING FROM NASDAQ THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DECEMBER 1990 HAD DELETED SPECTRUM FROM ITS LISTING AFTER THE COMPANY HAD FALLEN BELOW THE MINIMUM CAPITAL AND SURPLUS REQUIRED FOR CONTINUED INCLUSION SPECTRUM'S PUBLIC DOCUMENTS STATE BUT A JUNE 1991 OFFERING THROUGH MR MORGAN'S INVESTMENT COMPANY GENE MORGAN FINANCIAL BROUGHT SPECTRUM SUFFICIENT CAPITAL AND SURPLUS AND BY APRIL 1992 THE COMPANY WAS RELISTED STILL SPECTRUM DREW SCANT NOTICE IN THE TELECOMMUNICATIONS INDUSTRY UNTIL MR CASERTA WHO HAD BEEN ADVISING THE COMPANY ON MANAGEMENT ISSUES AND ON RAISING CAPITAL JOINED UP IN 1992 AN ELEGANT DRESSER WITH A FLAIR FOR EARNEST GAB THE 50YEAROLD MR CASERTA HAS BRAGGED IN THE PAST THAT HE WAS A KEY MANAGEMENT ENGINEER ON THE APOLLO SPACE PROGRAM ACTUALLY HE HAS NO COLLEGE DEGREE BUT HOLDS A TWOYEAR CERTIFICATE FROM THE DEFUNCT RCA INSTITUTE OF TECHNOLOGY HE HAD WORKED FOR A NASA SUBCONTRACTOR'S ENGINEERING TEAM IN THE 1960S ACCORDING TO A FORMER SPOKESWOMAN FOR SPECTRUM JEAN YOUNG MR CASERTA WHO HAS DECLINED COMMENT ON HIS TRACK RECORD REVELS IN AN ENGINEERING AND TECHNICAL SERVICES FIRM HE FOUNDED IN THE 1970S WHOSE MAJOR PROJECTS WERE THE SPACE SHUTTLE AND THE ALASKAN PIPELINE INTERGLOBAL TECHNICAL SERVICES INC WAS A SORT OF TEMP AGENCY FOR TECHNICALLY TRAINED PEOPLE INCLUDING ENGINEERS MR CASERTA AND HIS BROTHER FRANK WHO ACTUALLY MANAGED THE COMPANY SOLD INTERGLOBAL TO CDI CORP IN 1988 WHICH USED A COUPLE OF INTERGLOBAL OFFICES TO FILL OUT ITS COVERAGE IN THE SOUTHWEST AND CALIFORNIA MR CASERTA LATER FORMED MANAGEMENT CONSULTING FIRMS CALLED THE CASERTA GROUP AND CASERTA ENTERPRISES INC WHICH RAISE CAPITAL FOR SMALL COMPANIES TODAY MR CASERTA AND HIS MANAGEMENT FIRMS ARE EMBROILED IN A FRACTIOUS LEGAL STRUGGLE WITH A NUMBER OF THESE CLIENTS SUING THEM IN A LOCAL LONG ISLAND COURT FOR FEES FOR SERVICES THAT THE CLIENT COMPANIES CLAIM WERE NEVER RENDERED NOW MR CASERTA AND SPECTRUM ARE SAYING MR SCULLEY WAS WELL AWARE OF THE COMPANY'S PROBLEMS WHEN HE ACCEPTED THE GENEROUS PAY PACKAGE AND AGREED TO JOIN THE COMPANY MR SCULLEY KNOWN FOR HIS OWN AMPLE ABILITIES TO CREATE A VISION AND PROMOTE A NEW PRODUCT PAINTS HIMSELF AS A VICTIM OF MR CASERTA'S GIFT FOR HYPE MESSRS SCULLEY AND CASERTA DECLINED THROUGH THEIR ATTORNEYS TO COMMENT ON THE PROBLEMS THAT DROVE THEM APART SPECTRUM SAYS IT WAS DISAPPOINTED AND CALLED MR SCULLEY'S RESIGNATION CLEARLY IN VIOLATION OF HIS EMPLOYMENT AGREEMENT WITH THE COMPANY SAYING IT DISREGARDS HIS RESPONSIBILITIES TO SHAREHOLDERS BUT MR SCULLEY'S LAWYER ARNOLD BURNS CONTENDS THE EXECUTIVE HAD NO OTHER CHOICE BUT TO QUIT ONCE IT BECAME CLEAR TO HIM THAT MR CASERTA HAD MISLED HIM JOHN LOOKED MR CASERTA STRAIGHT IN THE EYE AT THE TIME HE AGREED TO JOIN AND ASKED HIM IF THERE WERE ANY PROBLEMS HE SHOULD KNOW ABOUT MR BURNS SAYS AND CASERTA TOLD HIM EVERYTHING HAD BEEN SETTLED OVER THE PAST WEEKEND WITH THE SEC DISCLOSURES AND WORD THAT ONE PENDING SHAREHOLDER LAWSUIT WAS BEING EXPANDED AND THAT YET ANOTHER CLASSACTION SUIT MAY BE FILED AGAINST THE COMPANY MR SCULLEY DECIDED TO BAIL OUT HIS ATTORNEY QUOTES MR SCULLEY AS SAYING I CAN'T RUN A RACE WITH THE BURLAP BAG THESE BASTARDS TIED AROUND MY LEGS 9402080064 940208 BUSINESS WORLD AN ETHNICFLAVORED HMO VS CLINTON'S COOKIECUTTER BY TIM W FERGUSON A NICHE SERVING TINY COMPANIES AND LOWERINCOME PEOPLE DOESN'T SOUND TOO PROFITABLE IN MANAGED HEALTH CARE BUT SOME BELIEVE IT CAN BE WHEN THE TARGET POPULATIONS ARE TIGHTLY KNIT ETHNIC GROUPS AND IF PRESIDENT CLINTON AND CONGRESS WILL ALLOW A MARKET TEST THE PROBLEM IS UNDER REFORM WHITE HOUSESTYLE THERE'D BE LITTLE ROOM LEFT FOR AN HMO LIKE VIVAHEALTH PLAN RECENTLY LICENSED ON THE EAST SIDE OF LOS ANGELES IT'S ONE OF THE FIRST INDEPENDENT ATTEMPTS TO TURN A GAP IN THE HEALTH CARE SYSTEM A BURGEONING NUMBER OF MOSTLY LATINO IMMIGRANTS OUTSIDE THE MAINSTREAM OF US MEDICINE INTO AN OPPORTUNITY RUTH LOPEZ WILLIAMS IS THE CEO OF THIS STARTUP THE SAME POST SHE'S HELD FOR THE PAST 13 YEARS AT A CANCERTREATMENT OPERATION IN THE AREA FOUNDED BY HER BROTHER DR JOHN THROPAY WHO IS ALSO CHAIRMAN OF VIVAHEALTH LIKE THE NASCENT HMO THE CANCER FACILITIES ARE AIMED AT BRIDGING A CULTURAL GAP MS LOPEZ WILLIAMS SAYS VIVAHEALTH HAS ASSEMBLED 1000 DOCTORS AND OTHER MEDICAL PROVIDERS MANY OF THEM EQUIPPED TO SPEAK SPANISH BUT LANGUAGE ISN'T THE ONLY MAJOR ACCOMMODATION REASONABLE DEFERENCE TO CULTURAL NORMS SUCH AS THE WIDESPREAD USE OF HOME REMEDIES IS EXPECTED OF TYPICALLY WARY MDS WITH SUCH SENSITIVITY VIVAHEALTH MAY BE ABLE NOT ONLY TO EXPAND THE MARKET BUT TO HEAD OFF ENTRENCHED PLANS SUCH AS KAISER THAT ARE GRASPING FOR A LARGER LATINO SHARE MS LOPEZ WILLIAMS SEES THE PROCLIVITIES OF HER PATIENT BASE NOT AS QUIRKS BUT STRENGTHS A STRONG TRADITION OF BREASTFEEDING FOR EXAMPLE IS GOOD FOR LATINO BABIES AS IS THE SOCIAL CONVENTION AGAINST CIGARETTE AND ALCOHOL USE BY THEIR MOTHERS IN THE EXTENDED FAMILIES COMMON TO ETHNICS IT'S MORE LIKELY SOMEONE CAN GET GOOD OL' TLC FROM A RELATIVE ACCORDING TO DAVID HAYESBAUTISTA A UCLA MEDICAL RESEARCHER WHO IS ADVISING VIVAHEALTH LATINOS IN HMOS SPEND A THIRD LESS TIME IN THE HOSPITAL THAN OTHERS IN THE PLANS SIMPLY PUT IMMIGRANT GROUPS CAN PROVE TO BE BETTER RISKS THAN THE GENERAL POPULATION THE MODEL HOLDS FOR LATINOS BUT ALSO MS LOPEZ WILLIAMS SAYS FOR ANY TRUE COMMUNITY PEOPLE THAT WORK LIVE AND WORSHIP IN THE SAME DEMOGRAPHIC AREA AND HAVE FAMILY AS A RESULT THEY RELY ON EACH OTHER AND THAT ACTS TO CURB THE OVERALL COSTS THEY IMPOSE ON THE MEDICAL SYSTEM ALSO SHE NOTES THE INFLUENCE ON BEHAVIOR OF OLDFASHIONED IDEAS SOMETHING AS SIMPLE AS GETTING MARRIED BEFORE YOU HAVE KIDS ACTUALLY THAT LAST CONDITION IS SUBJECT TO DETERIORATION ILLEGITIMACY AMONG WHITE HISPANICS HAS RISEN APPRECIABLY ACCORDING TO CALIFORNIA STATE STATISTICS AND NOW ACCOUNTS FOR HALF THEIR BIRTHS IN LOS ANGELES COUNTY STILL THEIR FAMILYFORMATION RATES ARE RELATIVELY HIGH UNDENIABLY A BIG REASON THE IMMIGRANTETHNIC PROFILE IS APPEALING TO AN HMO PLANNER IS THE YOUNGER MAKEUP OF THESE GROUPS AVERAGE INCOMES MAY LAG BUT SO DOES THE INCIDENCE OF CHRONIC AILMENTS THIS MARKET COULD BENEFIT FROM SPECIALLY TAILORED COVERAGE THEY GO IN THE HOSPITAL FOR BABIES WHY SHOULD THEY PAY FOR HEART DISEASE SAYS MS LOPEZ WILLIAMS AGING IS INEVITABLE OF COURSE SO PART OF THE VALUE ADDED VIVAHEALTH PROMISES IS PREVENTIVE COUNSELING AND CHECKUPS TO HELP ITS ENROLLEES STAY WELL TO THE END IT ISN'T EASY TO GET AN HMO GOING UNDER A CALIFORNIA LAW THAT RESPONDED TO BUSTS OF SOME EARLY PLANS SAN DIEGO HEALTH CONSULTANT EDWARD MARTINEZ FIGURES STARTUP CAPITAL MUST EXCEED 1 MILLION AND THE AMOUNT OF TECHNICAL RESOURCES REQUIRED TO GET LICENSURE ARE BEYOND THE MEANS OF THE TYPICAL MEDICAL GROUP NEVERTHELESS ETHNIC PROVIDERS ARE EMERGING VIVAHEALTH'S FOUNDERS WHO TOOK MORE THAN SEVEN YEARS AND 3 MILLION TO GET OUT OF THE GATE ENVISION EXPANSION ALONG THE ETHNIC CORRIDORS OF CALIFORNIA AND OUT TO THE STATES OF THE SOUTHWEST PROBABLY THROUGH JOINT VENTURES THE BIG UNCERTAINTY NOW IS WASHINGTON ANY REFORM PLAN THAT FORCES A BLENDING OR COMMUNITYRATING OF RISKS WOULD DEPRIVE A YOUNGER STURDIER SUBGROUP OF THE CHANCE TO EXPLOIT ITS ADVANTAGE AND IN THE CASE OF LATINOS WOULD COMPEL THEM TO SUBSIDIZE A WEALTHIER AND SICKER OR AT LEAST MORE MEDICALLY DEMANDINGSOCIETY VIVAHEALTH'S APPROACH IS GEARED TO PICKING UP ONE OF THE MOST DIFFICULT PIECES OF THE HEALTH CARE PUZZLE THE SMALL OR FAMILY BUSINESS COVERAGE FOR SUCH ENTERPRISES IS USUALLY EXPENSIVE BECAUSE THEY REPRESENT SUCH TINY RISK POOLS MS LOPEZ WILLIAMS SEEKS TO OFFER AN AFFORDABLE PLAN TO THE MULTITUDE OF MOMANDPOP OPERATORS USING THE LARGER ETHNIC BASE'S EXPERIENCE PROFILE BUT THE CLINTON PLAN THOUGH IT CONTAINS SUBSIDIES TO INDIGENOUS HEALTH CARE IN UNDERSERVED AREAS WOULD GUT VIVAHEALTH'S VEHICLE IN PLACE OF PREPAID CARE SUITED TO THE MODEST EXPECTATIONS OF THE ETHNIC MARKET UNIFORM FORTUNE 500 COVERAGE WOULD BE ESTABLISHED BY MAMMOTH PLANNING BOARDS AND MICROMANAGEMENT AN ALTERNATIVE THE COOPERGRANDY BILL NOW ATTRACTING BIGBUSINESS SUPPORT IS OK AS LONG AS IT LEAVES THE OPTION TO SAY NO TO BLUEPRINT COVERAGE MS LOPEZ WILLIAMS SAYS BUT SHE'D PREFER SEN PHIL GRAMM'S MORE MARKETORIENTED BILL SOME OF THE SENATOR'S THOUGHTS ON HEALTH CARE APPEAR ON THE EDITORIAL PAGE TODAY GIVEN A CHOICE A CAFE OWNER MIGHT CHOOSE TO COVER ONLY CATASTROPHIC ILLNESS MOREOVER A FAMILYBUSINESS CLIENTELE MEANS AN INSURANCE PLAN LESS SUBJECT TO THIRDPARTY PAYER DISTORTIONS IT'S AS CLOSE AS YOU'RE LIKELY TO GET TO POINTOFPURCHASE RESPONSIBILITY IN TODAY'S WORLD OF PACKAGED EMPLOYERPAID MEDICINE VIVAHEALTH WOULD HAVE TO PROVE ITSELF AS AN ENTERPRISE BUT ITS CONCEPT IS AN EXAMPLE OF HOW THE MARKETPLACE CAN WORK TO RID EVEN A FLAWED SYSTEM OF SOME OF ITS SORRY MANIFESTATIONS THE SCIENTIFIC STATISM OF CLINTONIZED HEALTH CARE DESIGNED SO METHODICALLY TO RID AN 800 BILLION SECTOR OF ITS PERVERSITIES WOULD SUCK THE OXYGEN OUT OF SUCH INNOVATION MS LOPEZ WILLIAMS SAYS VIVAHEALTH IS PREPARED FOR THE WORST IF IT IS UNABLE TO FUNCTION AS A SELFCONTAINED HMO IT CAN BECOME AN ACCESS PIECE FOR ONE OF THE GIANT HEALTHCARE NETWORKS THAT WILL EMERGE UNDER A CLINTONTYPE SYSTEM BUT IN THAT ENVIRONMENT SHE FEARS THE HIGHER PAYROLL COSTS THAT WILL BE SPREAD OVER THE WHOLE ECONOMY WILL MOST AFFECT THE ETHNIC POPULATION SHE IS TRYING TO SERVICE BY THREATENING JOBS ON THE MARGIN THE FINANCING OF THE CLINTON PLAN SHE SAYS WOULD FALL SO FAR SHORT THAT THE PROMISED SUBSIDIES TO SMALL BUSINESS WILL BE GONE IN SHORT ORDER THIS PEPPERDINE MBA USES MANAGEMENT ARGOT TO BRAND THE CLINTON WAY A DEPARTURE FROM NEARLY EVERYTHING EXECUTIVES HAVE LEARNED IN RECENT YEARS ABOUT GLEANING EFFICIENCIES AND SERVING CUSTOMERS IN LAY TERMS IT ALL COMES DOWN TO THE FOLLY OF ONESIZEFITSALL I THINK THE INTENT WAS MAGNIFICENT SHE SAYS BUT IT'S GOING TO BE DICTATED FROM THE TOP AND MY COMMUNITY IS VULNERABLE 9402080063 940208 INTERNATIONAL BRIEF METALLGESELLSCHAFT AG EXCHAIRMAN OF FIRM SEEKS SETTLEMENT OF 568 MILLION THE FORMER CHAIRMAN FIRED FROM GERMANY'S METALLGESELLSCHAFT AG IS SEEKING A SETTLEMENT OF NEARLY 10 MILLION MARKS 568 MILLION THE MAGAZINE DER SPIEGEL REPORTED BUT A SPOKESMAN FOR THE ENGINEERING METALS AND TRADING COMPANY SAID SUCH A REQUEST HASN'T BEEN RECEIVED THE COMPANY'S STOCK FELL 13 MARKS OR 56 TO 221 MARKS IN FRANKFURT HEINZ SCHIMMELBUSCH WHO WAS CHAIRMAN OF THE MANAGEMENT BOARD WAS FIRED IN DECEMBER A MONTH AFTER HIS EMPLOYMENT CONTRACT WAS RENEWED FOR FIVE YEARS THE COMPANY CITED A LACK OF CONTROL OVER COMPANY OPERATIONS AND FAILURE TO KEEP THE SUPERVISORY BOARD PROPERLY INFORMED ACCORDING TO DER SPIEGEL SOME OF MR SCHIMMELBUSCH'S ALLIES WITHIN THE COMPANY WANT THE SETTLEMENT PAID OUT AS SOON AS POSSIBLE OTHER OFFICIALS WANT TO AWAIT THE OUTCOME OF A SPECIAL AUDIT THAT IN PART WILL EXAMINE WHETHER THE FORMER OFFICIAL DISOBEYED GERMAN CORPORATE LAW IF THAT IS THE CASE HE WOULDN'T RECEIVE A SETTLEMENT 9402080062 940208 LETTERS TO THE EDITOR SCHWARZ WITHOUT THE T' TWO JAN 31 LETTERS TO THE EDITOR IN RESPONSE TO SUSAN HAUSER'S DEC 28 ARTICLE BORED ON FIFTH SHARED A COMMON ERROR THE WORLDFAMOUS TOY STORE FAO SCHWARZ IS SPELLED WITHOUT THE T OUR CHAIRMAN H MARSHALL SCHWARZ IS THE GREATGRANDSON OF FAO SCHWARZ 9402080061 940208 ACORN INTERNATIONAL TO BAR NEW INVESTORS AS OF FRIDAY NEW YORK FLOODED WITH CASH FROM INDIVIDUALS PURSUING FOREIGNSTOCK INVESTMENTS ACORN INTERNATIONAL FUND WILL CLOSE ITS DOORS TO NEW INVESTORS ON FRIDAY THIS THING HAS GONE OUT OF CONTROL WITH PEOPLE LOOKING FOR VARIOUS WAYS TO GET MONEY OVERSEES SAYS RALPH WANGER OF WANGER ASSET MANAGEMENT LP THE CHICAGOBASED INVESTMENT ADVISER TO ACORN INTERNATIONAL LAUNCHED IN SEPTEMBER 1992 THE FUND HAD A WHOPPING RETURN OF 4911 IN 1993 AND IS UP 54 SO FAR THIS YEAR WITH ABOUT 12 BILLION IN TOTAL ASSETS CURRENTLY ACORN INTERNATIONAL HAS BEEN RECEIVING AN ADDITIONAL 10 MILLION TO 15 MILLION A DAY FROM INVESTORS SAYS MR WANGER WE'VE OBVIOUSLY BEEN ONE OF THE FUNDS INVESTORS ARE TURNING TO BUT IN A SMALLSTOCK INVESTMENT FORMAT WE DON'T WANT TO HAVE TO BUY TOO MANY NAMES TO USE UP ALL THE MONEY ACORN INTERNATIONAL INVESTS IN SMALL COMPANIES MOSTLY UNDER 1 BILLION IN MARKET VALUE FROM ABOUT 38 DIFFERENT COUNTRIES RECENTLY THE FUND HAS INCREASED ITS EXPOSURE IN MEXICAN STOCKS WHICH MAKE UP 4 OF ITS TOTAL ASSETS 9402080060 940208 LAW LEGAL BEAT JAMAIL'S VITRIOLIC TALK IN DELAWARE LEADS TO A 16PAGE COURT REBUKE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL THE PROFANITYLADEN COMMENTS OF HOUSTON LAWYER JOSEPH JAMAIL ONE OF THE NATION'S MOST SUCCESSFUL PLAINTIFFS' ATTORNEYS HAVE LANDED HIM IN HOT WATER WITH THE DELAWARE SUPREME COURT AND COULD RESULT IN HIS BEING BARRED FROM PRACTICING IN THAT STATE THE DELAWARE HIGH COURT IN AN UNUSUAL STEP SAID MR JAMAIL'S EXTRAORDINARILY RUDE UNCIVIL AND VULGAR CONDUCT IN A RECENT DEPOSITION COULD PREVENT HIM FROM BEING ALLOWED TO APPEAR IN ANY DELAWARE LEGAL PROCEEDING IN AN ADDENDUM TO A WRITTEN OPINION ON FRIDAY THE COURT LAMBASTED MR JAMAIL FOR HIS COMMENTS DURING A PRETRIAL FACTFINDING INTERVIEW IN CONNECTION WITH LITIGATION IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC ALTHOUGH MR JAMAIL'S ACTIONS HAD NO EFFECT ON THE LEGAL ISSUES BEFORE THE COURT THE STATE'S HIGH COURT SAID THE MISCONDUCT WARRANTED A STERN RESPONSE THE COURT DEVOTED 16 PAGES TO THE MATTER AT THE END OF A 67PAGE OPINION MR JAMAIL IS BEST KNOWN FOR WINNING A 1053 BILLION JURY VERDICT AGAINST TEXACO INC IN 1985 ON BEHALF OF CLIENT PENNZOIL CO MR JAMAIL'S FEE IN THAT CASE WAS REPORTED TO BE SEVERAL HUNDRED MILLION DOLLARS IN THE PARAMOUNT MATTER THE COURT QUOTED A TRANSCRIPT OF THE DEPOSITION IN WHICH MR JAMAIL REFERS TO ANOTHER ATTORNEY WILLIAM JOHNSTON WITH A CRUDE ANATOMICAL REFERENCE AND TELLS HIM TO SPEED UP THE QUESTIONING OF MR JAMAIL'S CLIENT L HUGH LIEDTKE A PARAMOUNT DIRECTOR AND PENNZOIL CHAIRMAN MR JAMAIL ALSO TOLD MR JOHNSTON WHO REPRESENTS QVC NETWORK INC A PARAMOUNT SUITOR YOU COULD GAG A MAGGOT OFF A MEAT WAGON THE COURT SAID MR JAMAIL'S BEHAVIOR DEMONSTRATES SUCH AN ASTONISHING LACK OF PROFESSIONALISM AND CIVILITY THAT IT IS WORTHY OF SPECIAL NOTE HERE AS A LESSON FOR THE FUTURE A LESSON OF CONDUCT NOT TO BE TOLERATED OR REPEATED ALTHOUGH A DEPOSITION ISN'T CONDUCTED BEFORE A JUDGE SUCH AN OFFICIAL SWORN INTERVIEW PRIOR TO A CIVIL TRIAL IS CONSIDERED A COURT PROCEEDING AND THE SAME RULES OF COURTROOM BEHAVIOR APPLY SPECIALISTS IN LEGAL ETHICS SAY THE DELAWARE RULING COMES AT A TIME WHEN MANY JUDGES AROUND THE COUNTRY HAVE BECOME FED UP WITH A LACK OF CIVILITY AMONG LAWYERS CIVILITY IS SEEN AS A NECESSARY ARM OF PROFESSIONALISM AND OF PROFESSIONAL ETHICS SAID MICHAEL G DAIGNEAULT WHOSE FALLS CHURCH VA FIRM TEACHES ETHICAL CONDUCT TO LAW FIRMS AND BUSINESSES WHILE STATE COURT SYSTEMS ALL HAVE RULES REQUIRING CIVILITY BETWEEN COURTROOM ADVERSARIES THE DELAWARE COURTS MAY PLACE A HIGHER PREMIUM ON GOOD BEHAVIOR SAID DONALD PEASE A PROFESSOR AT WIDENER UNIVERSITY SCHOOL OF LAW IN WILMINGTON DEL DELAWARE IS VERY PICKY ABOUT LAWYERS WHO ACT IN AN UNCIVIL WAY IN LITIGATION CIVILITY IS CERTAINLY EMPHASIZED BY THE DELAWARE SUPREME COURT PROF PEASE SAID ADDING THAT THE COURT'S CHIEF JUDGE GAVE A SPEECH ABOUT THIS ISSUE TO WIDENER'S GRADUATING STUDENTS LAST YEAR THE CHIEF JUDGE ALSO WROTE THE DECISION CRITICIZING MR JAMAIL MR JAMAIL SAID HE ISN'T CONCERNED ABOUT THE RULING BY THE DELAWARE JUDGES WHOM HE REFERRED TO AS BUREAUCRATS IN ROBES THE JUDGE WHO WROTE THIS I GUESS HE THINKS HE IS EMILY POST THE HOUSTON ATTORNEY SAID MR JAMAIL SAID THAT INSTEAD OF CRITICIZING HIS LACK OF MANNERS THE COURT SHOULD HAVE REPRIMANDED THE LAWYER WHOM MR JAMAIL INSULTED MR JAMAIL CLAIMS THAT THE ATTORNEY MR JOHNSTON WAS WASTING TIME DURING THE DEPOSITION BY REPEATEDLY ASKING QUESTIONS THAT MR LIEDTKE COULDN'T ANSWER MR JOHNSTON A WILMINGTON DEL ATTORNEY DECLINED TO DISCUSS THE MATTER EXCEPT TO SAY I'M GRATIFIED THAT THE COURT ADDRESSED THE SITUATION THE COURT IN A FOOTNOTE SAID ALTHOUGH THE QUESTIONING IN THE LIEDTKE DEPOSITION COULD HAVE PROCEEDED MORE CRISPLY THIS WAS NOT A CASE WHERE IT WAS THE QUESTIONER WHO ABUSED THE PROCESS MR JAMAIL WHO HAS WON MORE THAN ONE HUNDRED MULTIMILLIONDOLLAR VERDICTS AND JUDGMENTS ALSO SAID THAT HE HAS NO INTEREST IN APPEARING IN DELAWARE LEGAL MATTERS THERE'S NOT ENOUGH MONEY THERE FOR ME TO GO TO DELAWARE MR JAMAIL SAID THE STATE SUPREME COURT INVITED MR JAMAIL TO APPEAR BEFORE IT TO EXPLAIN WHY HE SHOULDN'T BE BARRED FROM PRACTICING IN DELAWARE BECAUSE MR LIEDTKE'S DEPOSITION WAS CONDUCTED IN HOUSTON AND MR JAMAIL WASN'T INVOLVED IN ANY OTHER ASPECTS OF THE LITIGATION IT WASN'T REQUIRED IN THIS CASE THAT HE BE LICENSED TO PRACTICE IN DELAWARE AS A RESULT THE COURT CAN'T TAKE ANY ACTION AGAINST MR JAMAIL SUCH AS CENSURING HIM OR ORDERING HIM TO PAY SANCTIONS BUT THE COURT SAID IT WOULD HAVE PUNISHED A DELAWARE LAWYER FOR SUCH CONDUCT EACH STATE HAS ITS OWN STANDARDS OF BEHAVIOR FOR LAWYERS IN HIS HOME STATE MR JAMAIL'S BEHAVIOR PROBABLY WOULD HAVE VIOLATED THE TEXAS LAWYER'S CREED AS THAT STATE'S GUIDELINES ARE KNOWN SAID ROBERT SCHUWERK A PROFESSOR AT THE UNIVERSITY OF HOUSTON LAW CENTER AMONG OTHER THINGS THE CREED SAYS THAT IN DEALING WITH OTHER ATTORNEYS I CAN DISAGREE WITHOUT BEING DISAGREEABLE I WILL AVOID DISPARAGING PERSONAL REMARKS OR ACRIMONY TOWARDS OPPOSING COUNSEL THE CREED ALSO SAYS LAWYERS WILL REFRAIN FROM OBNOXIOUS BEHAVIOR AND ANY ALLUSION TO PERSONAL PECULIARITIES OR IDIOSYNCRASIES OF OPPOSING COUNSEL TEXAS RULES HOWEVER DON'T PROVIDE FOR LAWYERS TO BE SANCTIONED FOR VIOLATING THE GUIDELINES AVERAGE LIBEL AWARDS AGAINST PUBLISHERS AND BROADCASTERS DECLINED DURING THE PAST TWO YEARS ACCORDING TO THE LIBEL DEFENSE RESOURCE CENTER ALSO THE ANNUAL NUMBER OF LIBEL CASES TRIED AGAINST NEWS ORGANIZATIONS DROPPED TO THE LOWEST LEVEL SINCE THE NEW YORKBASED INFORMATION CLEARINGHOUSE BEGAN TRACKING THE DATA IN 1980 AND THE RATE OF DEFENSE VICTORIES ROSE CONSIDERABLY FROM PREVIOUS PERIODS IT'S NOT CLEAR WHAT THE 1992 AND 1993 NUMBERS MEAN SAID THE GROUP'S GENERAL COUNSEL HENRY R KAUFMAN ADDING THAT IT MIGHT OR MIGHT NOT BE AN ABERRATION ACCORDING TO THE GROUP'S REPORT THERE WERE AN AVERAGE OF 12 LIBEL TRIALS A YEAR IN 1992 AND 1993 COMPARED WITH AN AVERAGE OF 175 FOR THE TWO YEARS PRIOR TO THAT AND MORE THAN 25 A YEAR DURING THE DECADE OF THE 1980S NEWS ORGANIZATIONS IN 1992 AND 1993 WON NEARLY HALF THE TRIALS AGAINST THEM ACCORDING TO THE REPORT COMPARED WITH ONLY ABOUT 25 DURING THE 1980S THE AVERAGE DAMAGE AWARD FOR THE 199293 PERIOD 11 MILLION WAS SIGNIFICANTLY LOWER THAN THE AVERAGE FOR THE 1980S 15 MILLION MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9402080059 940208 PEPPERAND SALT ALL OF WHICH ARE EQUALLY BORING AND NOT TOO BAD DOWN UNDER TAKEOUT LUNCH TOTE CUISINE 9402080058 940208 BUSINESS BRIEF LUKENS INC COMPANY TO SELL THE ASSETS OF MATERIALS HANDLING GROUP LUKENS INC COATESVILLE PA SAID IT REACHED A DEFINITIVE AGREEMENT TO SELL THE ASSETS OF ITS MATERIALS HANDLING GROUP AS PART OF ITS PLANS TO CONCENTRATE ON ITS CORE STEEL BUSINESS TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE GROUP'S ASSETS WILL BE SOLD TO POWERSCREEN INTERNATIONAL PLC OF DUNGANNON NORTHERN IRELAND LUKENS MATERIALS HANDLING GROUP CONSISTS OF SIMPLICITY ENGINEERING INC AND LUDLOWSAYLOR INC THE TWO UNITS HAD COMBINED 1993 SALES OF ABOUT 25 MILLION AND ARE PROFITABLE LUKENS SAID SIMPLICITY MAKES PRODUCTS USED FOR PROCESSING AND CONVEYING BULK MATERIALS SUCH AS CRUSHED STONE SAND AND GRAVEL LUDLOWSAYLOR MAKES HEAVYGAUGE WOVEN WIRE AND CAST POLYURETHANE SCREENS USED MAINLY TO CLASSIFY BULK MATERIALS 9402080057 940208 THE CLINTON BUDGET SMOKERS SECURITIES TRADERS ARE FACING INCREASED COSTS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON BUDGET WOULD JACK UP THE PRICE OF CIGARETTES AS WELL AS MAKING IT MORE EXPENSIVE TO VISIT YELLOWSTONE GET A COPY OF YOUR TAX RETURN SELL A GUN OR TRADE STOCKS THE NEW BUDGET HITS ONLY SMOKERS WITH A TAX INCREASE UP 75 CENTS A PACK TO 99 CENTS WHICH WOULD PAY FOR THE ADMINISTRATION'S AMBITIOUS HEALTHCARE PLAN BUT THE BUDGET WOULD RAISE ABOUT 15 BILLION IN NEW USER FEES IN FISCAL 1995 YIELDING ABOUT 84 BILLION THROUGH 1999 IN A BUDGET GEARED TOWARD REDUCING THE DEFICIT THE USER FEES ARE MORE PALATABLE POLITICALLY THAN HIGHER TAXES FOR ONE THING THEY DON'T REQUIRE SEPARATE TAX LEGISLATION MOREOVER THE FEES HELP COVER THE COSTS OF GOVERNMENT SERVICES WITHOUT ADDING TO THE BUDGET DEFICIT THESE ARE IMPORTANT BECAUSE THEY ALLOW YOU TO SPEND MORE ON OTHER THINGS SAID STANLEY COLLENDER OF PRICE WATERHOUSE WHO CLOSELY FOLLOWS THE FEDERAL BUDGET LEON PANETTA HEAD OF THE OFFICE OF MANAGEMENT AND BUDGET DEFENDED THE USER FEES AT A NEWS CONFERENCE YESTERDAY SAYING THAT THEY DON'T EXCEED THOSE IN SPENDING PLANS PROPOSED BY CONGRESSIONAL REPUBLICANS WALL STREET AND PHARMACEUTICAL COMPANIES GET HIT WITH THE BIGGEST FEES THE BUDGET ESTIMATES THAT THE FOOD AND DRUG ADMINISTRATION WILL REAP 338 MILLION IN FISCAL 1995 BY CHARGING DRUG COMPANIES FOR THE PROCESS OF APPROVING NEW PRODUCTS THE FDA FEES STEM FROM RECENT LAWS CALLING FOR SPEEDIER FDA APPROVALS OR REJECTIONS OF NEW DRUGS AND MEDICAL DEVICES AS WELL AS FOR NEW INSPECTIONS FOR MAMMOGRAPHY EQUIPMENT AN APPLICATION FOR THE FDA TO TEST AND APPROVE A NEW DRUG FOR EXAMPLE WILL BE 208000 IN FISCAL 1995 THE FDA IS TO INCREASE ITS STAFFING FOR THOSE PURPOSES A VARIETY OF SECURITIES FEES WOULD RAISE 378 MILLION IN FISCAL 1995 FOR INSTANCE THE FEE ON THE SALES OF STOCKS WOULD INCREASE TO 1/250 OF 1 OF THE SALES AMOUNT FROM 1/300 OF 1 AND ALL THOSE CORPORATE TITANS BATTLING TO BUY PARAMOUNT COMMUNICATIONS INC BEWARE THE FEE ON TENDER OFFERS AND MERGERS WILL INCREASE TO 1/29 OF 1 OF THE TRANSACTION PRICE FROM 1/50 OF 1 THAT 10 BILLION DEAL FOR EXAMPLE WOULD RESULT IN A 34 MILLION FEE TO THE SECURITIES AND EXCHANGE COMMISSION OTHER PROPOSED NEW FEES INCLUDE A BOOST IN THE MAXIMUM DRIVEIN FEE AT NATIONAL PARKS TO 16 FROM THE CURRENT 10 GUN DEALERS WOULD BE ASSESSED 600 A YEAR UP FROM 200 A YEAR RAISING 25 MILLION A YEAR THE INTERNAL REVENUE SERVICE WOULD CHARGE 12 FOR PHOTOCOPIES OF TAX RETURNS UP FROM 425 PREVIOUSLY RAISING 5 MILLION AND THE AGRICULTURE DEPARTMENT WOULD BEGIN CHARGING FOR OVERTIME FOR ITS MEAT AND POULTRY INSPECTORS RAISING 103 MILLION IN FISCAL 1995 9402080056 940208 BUSINESS BRIEF A PEA IN THE POD INC FISCAL FOURTH QUARTER SALES ROSE 35 TO 113 MILLION A PEA IN THE POD INC DALLAS SAID SALES FOR ITS FOURTH QUARTER ENDED JAN 29 ROSE 35 TO 113 MILLION FROM 84 MILLION A YEAR EARLIER THOUGH SALES AT STORES OPEN A YEAR OR MORE DROPPED 75 FOR THE FULL FISCAL YEAR SALES GREW 37 TO 409 MILLION FROM 298 MILLION WITH SALES AT STORES OPEN A YEAR OR MORE UP 2 THE SPECIALTY MATERNITYPRODUCTS AND APPAREL RETAILER SAID THE FISCAL YEAR AND FOURTH QUARTER WERE RESPECTIVELY 53 WEEKS AND 14 WEEKS COMPARED WITH 52 WEEKS AND 13 WEEKS FOR THE PREVIOUS YEAR THE COMPANY SAID SALES WERE HURT BY THE CANNIBALIZATION FROM OPENING ADDITIONAL STORES IN EXISTING MARKETS TOGETHER WITH THE IMPACT OF THE LOS ANGELES EARTHQUAKE AND HARSH WINTER WEATHER IN OTHER PARTS OF THE COUNTRY MARK F SCHREIBER CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY EXPECTS TO OPEN SIX TO EIGHT STORES IN THE FIRST QUARTER OF 1994 9402080055 940208 TECHNOLOGY DELL UNVEILS SERVERS WITH CERTAIN SENSORS DIAGNOSTICS INSTALLED DALLAS DELL COMPUTER CORP VOWING TO MAKE ADVANCED PERSONALCOMPUTER NETWORKS EASIER TO USE INTRODUCED 15 PC SERVERS OR COMPUTERS DESIGNED TO MANAGE NETWORKS THE MACHINES PRICED FROM 4598 ARE MADE TO SERVE FROM 25 TO 500 PCS AND INCLUDE DIAGNOSTIC SOFTWARE AIMED AT PINPOINTING PROBLEMS BEFORE THEY AFFECT THE NETWORK THE PRODUCTS COME AMID A BOOM IN THE SERVER MARKET AS MORE COMPANIES REPLACE MAINFRAME COMPUTERS WITH NETWORKS OF PCS DELL'S EFFORT TO SIMPLIFY ITS SYSTEMS INCLUDES INSTALLING CERTAIN SOFTWARE AND NETWORKING HARDWARE AT THE FACTORY AND INCLUDING SENSORS THAT CAN WARN USERS OF SAY OVERHEATING PARTS OR DEFECTIVE FANS DELL BASED IN AUSTIN TEXAS AND A LEADING MAILORDER MERCHANT OF PCS HAS STRUGGLED IN ITS RECENT SERVER EFFORTS IN PART BECAUSE OF A LIMITED DISTRIBUTION NETWORK OUTSIDE ITS MAILORDER STRONGHOLD SUSAN FRANKLE MANAGER OF SERVER RESEARCH AT INTERNATIONAL DATA CORP IN FRAMINGHAM MASS SAID THE SERVERS ARE AN IMPROVEMENT OVER DELL'S EXISTING LINE BUT CRITICIZED THE COMPANY'S CONTINUING LACK OF CORPORATE SALES EXPERTISE AS WELL AS SOME TECHNICAL SHORTCOMINGS THAT MIGHT MAKE THE SYSTEMS LESS ATTRACTIVE TO THE LARGEST CORPORATE NETWORKS IN RESPONSE TOM MARTIN DELL'S VICE PRESIDENT OF WORLDWIDE MARKETING NOTED THAT DELL HAS QUIETLY EXPANDED ITS NETWORK OF COMPUTER DEALERS AND RESELLERS WE'VE CHANGED OUR FOCUS PRETTY DRAMATICALLY IN THE LAST YEAR HE SAID 9402080054 940208 MARKETING & MEDIA FCC DELAYS VOTE TO ALTER ITS RULES ON CABLE RATES WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION POSTPONED A VOTE TO REVISE THE CABLETELEVISION PRICE REGULATIONS IT ADOPTED LAST YEAR INSTEAD OF DECIDING THE MATTER THURSDAY AS PLANNED THE AGENCY TENTATIVELY SET A VOTE FOR FEB 22 THE DELAY GIVES THE STAFF MORE TIME TO COMPLETE A TOPTOBOTTOM REVIEW OF THE CABLEPRICING STRUCTURE THE AGENCY ADOPTED LAST APRIL TO COMPLY WITH THE 1992 CABLE ACT THE RULES WHICH WENT INTO EFFECT IN SEPTEMBER HAVE GENERATED A CRUSH OF COMPLAINTS FROM CONSUMERS AND COMMUNITIES THAT SAW MONTHLY CABLE BILLS RISE RATHER THAN DROP THAT EFFECT WASN'T ENVISIONED BY LAWMAKERS WHO PASSED THE 1992 LAW IN REACTION TO CONSUMER COMPLAINTS ABOUT SKYROCKETING CABLE RATES AND POOR SERVICE WHILE LAST YEAR'S RULES GENERALLY CUT THE PRICES CABLE COMPANIES CHARGE FOR REMOTECONTROL DEVICES AND OTHER EQUIPMENT IN MANY CASES THEY LET CABLE COMPANIES BOOST PRICES FOR PROGRAMMING SERVICES AN FCC SURVEY OF 14 CABLE COMPANIES LATE LAST YEAR FOUND THAT ABOUT A THIRD OF THE COMPANIES' SUBSCRIBERS HAD HIGHER MONTHLY BILLS AFTER THE RULES WENT INTO EFFECT 9402080053 940208 BUSINESS BRIEF HAWKER SIDDELEY CANADA INC BTR WILL SELL ITS 59 STAKE IN AIRCRAFTREPAIR COMPANY HAWKER SIDDELEY CANADA INC SAID BRITAIN'S BTR PLC AGREED WITH UNDERWRITERS TO SELL ITS 59 STAKE IN THE CANADIAN COMPANY FOR 2525 CANADIAN DOLLARS US1883 A SHARE OR A TOTAL OF ABOUT C121 MILLION HAWKER SIDDELEY SAID THE SHARES HAVEN'T BEEN REGISTERED FOR SALE IN THE US BASED IN MISSISSAUGA ONTARIO HAWKER SIDDELEY CANADA REPAIRS AIRCRAFT AND MAKES INDUSTRIAL EQUIPMENT ITS SHARES CLOSED YESTERDAY AT C2550 DOWN 50 CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE BTR AN INDUSTRIAL CONGLOMERATE SAID LAST MONTH THAT IT PLANNED TO MAKE A PUBLIC OFFERING OF ITS STAKE IN THE CANADIAN SUBSIDIARY 9402080052 940208 CLINTON BACKS UN CHIEF'S CALL ON AIR STRIKES HOWEVER US CREDIBILITY ON RELIEF OF SARAJEVO IS CONSIDERED TO BE LOW BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ENDORSED THE UNITED NATIONS SECRETARY GENERAL'S CALL FOR AUTHORITY TO ORDER WESTERN AIR STRIKES AROUND BESIEGED SARAJEVO AS THE US RAISED THE PROSPECT OF OTHER STEPS TO PUNISH AND DISCOURAGE SERB AGGRESSION THE US AND ITS EUROPEAN ALLIES BEGAN MOBILIZING AT LEAST RHETORICALLY FOLLOWING LAST WEEKEND'S SHELLING OF A SARAJEVO MARKET THAT KILLED 68 CIVILIANS AND WOUNDED HUNDREDS MORE MR CLINTON SAID I VERY MUCH WELCOME UN SECRETARY GENERAL BOUTROS BOUTROSGHALI'S REQUEST FOR AUTHORITY TO ORDER NORTH ATLANTIC TREATY ORGANIZATION AIR STRIKES ON BOSNIAN SERB ARTILLERY OR MORTAR POSITIONS EUROPEAN UNION FOREIGN MINISTERS MEETING IN BRUSSELS URGED NATO TO USE ALL MEANS NECESSARY TO END THE SIEGE OF SARAJEVO AND SECRETARY OF STATE WARREN CHRISTOPHER NOTING THAT MR BOUTROSGHALI WAS ASKING FOR AUTHORITY FOR FUTURE AIR STRIKES SAID THAT WE'RE ALSO LOOKING AT OTHER POSSIBLE STEPS TO RESPOND TO SATURDAY'S ATTACK AS WELL AS THE LARGER PROBLEM OF THE SERBS' UNACCEPTABLE ACTIONS AGAINST THE CIVILIAN POPULATION OF SARAJEVO US OFFICIALS SAID THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM IS EXPECTED TO MEET TOMORROW AND DISCUSS WHETHER TO GRANT MR BOUTROSGHALI'S REQUEST ANTHONY LAKE NATIONAL SECURITY ADVISER TRAVELED LAST EVENING TO SHREVEPORT LA TO BRIEF PRESIDENT CLINTON WHO IS ON A TRIP TO PROMOTE HIS DOMESTIC AGENDA BUT GIVEN THE WEST'S RECORD OF TOUGH TALK AND SCANT ACTION IT ISN'T CLEAR WHAT STEPS WILL BE TAKEN A US OFFICIAL SAID THE EUROPEAN UNION'S ACTION WAS A NICE OVERALL STATEMENT BUT WE'LL SEE WHAT IT MEANS NOTING THAT NATIONS SUCH AS BRITAIN CANADA SPAIN AND PORTUGAL REMAIN LEERY OF AIR STRIKES AND EUROPEANS CONSIDER WASHINGTON'S CREDIBILITY ON BOSNIA TO BE EXTREMELY LOW US OFFICIALS LEFT VAGUE WHAT OTHER STEPS MIGHT BE TAKEN TO PUNISH THE BOSNIAN SERBS AND PROMOTE A PEACE SETTLEMENT IN THE FORMER YUGOSLAVIA DEFENSE SECRETARY WILLIAM PERRY REFERRING TO THOSE PEACE EFFORTS SAID YESTERDAY THAT TO THE EXTENT ANY USE AT ALL OF AIR STRIKES FURTHERS THAT STRATEGIC OBJECTIVE THEN IT IS WORTH CONSIDERATION THE US IS EXPECTED TO BRING A PACKAGE OF MILITARY AND DIPLOMATIC MOVES TO TOMORROW'S MEETING AMONG THE MEASURES US OFFICIALS WANT TO DISCUSS IS SETTING A DEADLINE FOR THE BOSNIAN SERBS TO WITHDRAW THEIR ARTILLERY FROM AROUND SARAJEVO OR USING THE THREAT OF AIR STRIKES AS A DETERRENT TO SERBIAN AGGRESSION ACCORDING TO A MILITARY OFFICER ATTACHED TO NATO AN IDEA UNDER DISCUSSION BY MILITARY PLANNERS IS BOMBING PALE THE BOSNIAN SERB HEADQUARTERS A SHORT DISTANCE SOUTHEAST OF SARAJEVO THAT'S A TEMPTING OPTION THE OFFICER SAID SOME OF THE AIR STRIKES NATO PLANNERS CONSIDERED LAST SUMMER INVOLVED TURNING THE BOSNIAN SERB QUARTERS IN PALE INTO WHAT ANOTHER NATO OFFICER CALLED A GRAVEL PIT AT THE SAME TIME SENIOR US OFFICIALS MEETING AT THE WHITE HOUSE TWICE YESTERDAY DISCUSSED NEW DIPLOMATIC STEPS THAT THE US MIGHT TAKE TO HELP END THE FIGHTING SOME MOVES TALKED ABOUT INCLUDED HAVING WASHINGTON PLAY AN HONESTBROKER ROLE IN NEGOTIATIONS AS WELL AS DISPATCHING A SPECIAL ENVOY TO HELP THE BOSNIAN MUSLIMS REDRAW A PEACE SETTLEMENT MAP WHICH THEY COULD TAKE TO THE NEGOTIATING TABLE A SENIOR US OFFICIAL SAID THAT THE US DIDN'T EXPECT TO SCRAP THE PARTITION MAP THAT HAS BEEN UNDER DISCUSSION FOR SEVERAL MONTHS INSTEAD THE US COULD HELP FINETUNE THE MAP TO MEET THE MUSLIMLED GOVERNMENT'S SECURITY AND POLITICAL CONCERNS AS PART OF THAT PROCESS THE OFFICIAL SAID THE US MIGHT HAVE TO PERSUADE THE MUSLIMS TO GIVE UP SOME OF THEIR BATTLEFIELD GAINS FROM RECENT WEEKS WE ARE CONTINUING THE SEARCH FOR WAYS TO REINVIGORATE THE DIPLOMATIC EFFORTS AIMED AT ACHIEVING A POLITICAL SETTLEMENT AT THE CONFLICT IN BOSNIA MR CHRISTOPHER SAID DURING A NEWS CONFERENCE YESTERDAY A SENIOR OFFICIAL EMPHASIZED HOWEVER THAT THE US WOULDN'T GET INVOLVED IN BROWBEATING THE BOSNIAN GOVERNMENT INTO ACCEPTING A BAD DECISION PREVIOUSLY WASHINGTON HAS REFUSED EUROPEAN CALLS TO JOIN THE NEGOTIATING EFFORT SAYING IT WOULDN'T PARTICIPATE IN FORCING A SETTLEMENT DOWN THE BOSNIAN MUSLIMS' THROATS MEANWHILE LORD OWEN THE EU PEACE ENVOY SAID THAT BOSNIAN SERBS AGREED TO NEGOTIATE A SEPARATE PEACE FOR SARAJEVO ACCORDING TO WIRE SERVICE REPORTS HE SAID IT WAS AN AGREEMENT TO NEGOTIATE A UN ADMINISTRATION AND DEMILITARIZATION OF SARAJEVO SEPARATE FROM AN OVERALL PEACE SETTLEMENT HOWEVER UNDER PREVIOUS THREATS OF AIR STRIKES BOSNIAN SERBS HAVE MADE SIMILAR PROMISES WHICH THEY LATER DISCARDED ALTHOUGH UN OFFICIALS HAVEN'T DEFINITIVELY PLACED THE BLAME FOR SATURDAY'S MORTAR ATTACK MR CHRISTOPHER SAID THAT THE STRONG PRESUMPTION IN MY MIND IS THAT IT WAS BY THE SERBS IN ANY CASE US OFFICIALS SAID THE WEST COULD RETALIATE FOR AN ATTACK LAST FRIDAY BY BOSNIAN SERBS IN WHICH 10 CIVILIANS WERE KILLED WHILE WAITING TO RECEIVE FOOD IN A SARAJEVO SUBURB BUT THE USE OF AIR STRIKES MAY MEET RESISTANCE FROM SOME NATIONS RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WARNED IN MOSCOW YESTERDAY THAT UN AIR STRIKES WOULD BE THE LEAST SUCCESSFUL WAY TO RESOLVE THE CONFLICT IN BOSNIA AND WOULD LEAD ONLY TO AN ESCALATION IN VIOLENCE 9402080051 940208 VIE DE FRANCE RESTAURANT UNIT MCLEAN VA VIE DE FRANCE CORP SAID IT WILL SELL THE ASSETS OF ITS RESTAURANT DIVISION TO YAMAZAKI BAKING CO OF TOKYO FOR 20 MILLION THE DIVISION OPERATES 31 RESTAURANTS IN THE US EMPLOYS 800 AND REPORTED SALES OF 286 MILLION FOR ITS FISCAL YEAR ENDED IN JUNE 1993 YAMAZAKI A TOP BAKING COMPANY WITH ABOUT 49 BILLION IN SALES AND 17000 EMPLOYEES PURCHASED VIE DE FRANCE'S WHOLESALE BAKERY DIVISION IN 1991 STANISLAS VILGRAIN VIE DE FRANCE'S CHIEF EXECUTIVE OFFICER SAID THE SALE WOULD STRENGTHEN THE COMPANY'S FINANCIAL POSITION AND HELP IT DEVELOP ITS FASTGROWING CULINARY DIVISION WHICH PROVIDES PRODUCTS TO THE FOODSERVICE INDUSTRY THE CULINARY DIVISION WILL BE THE COMPANY'S PRINCIPAL REMAINING OPERATION THE SALE IS SUBJECT TO CERTAIN CONDITIONS INCLUDING APPROVAL BY THE COMPANIES' BOARDS AND VIE DE FRANCE SHAREHOLDERS THE EXECUTION OF A DEFINITIVE PURCHASE AND SALE AGREEMENT AND RECEIPT OF ANY NECESSARY REGULATORY APPROVALS ON THE NASDAQ STOCK MARKET VIE DE FRANCE CLOSED AT 525 UP 625 CENTS 9402080050 940208 BUSINESS BRIEF IMASCO LTD HARDEE'S UNIT POSTS LOWER OPERATING PROFIT FOR QUARTER HARDEE'S FOOD SYSTEMS INC A UNIT OF IMASCO LTD IN MONTREAL REPORTED LOWER FOURTHQUARTER OPERATING PROFIT ON SLIGHTLY HIGHER SALES AND REVENUE THE ROCKY MOUNT NC FASTFOOD CHAIN SAID OPERATING PROFIT TOTALED 185 MILLION BEFORE A PREVIOUSLY ANNOUNCED 18 MILLION PRETAX CHARGE RELATED TO THE SALE OF 84 ROY ROGERS UNITS IN THE PHILADELPHIA AREA A YEAR EARLIER OPERATING PROFIT WAS 217 MILLION HARDEE'S REVENUE FOR THE QUARTER WAS UP 16 TO 5031 MILLION COMPARED WITH 4951 MILLION A YEAR EARLIER SYSTEMWIDE SALES FOR THE 4019STORE CHAIN EDGED UP SLIGHTLY TO 123 BILLION FROM 122 BILLION FOR THE YEAR HARDEE'S SAID OPERATING PROFIT TOTALED 846 MILLION BEFORE THE CHARGE COMPARED WITH 631 MILLION IN 1992 REVENUE TOTALED 203 BILLION UP 36 FROM 196 BILLION A YEAR EARLIER WHILE SYSTEMWIDE SALES ROSE 3 TO 49 BILLION FROM 475 BILLION 9402080049 940208 LETTERS TO THE EDITOR THE TRUTH ABOUT OUR FAMILY BUSINESS THIS IS IN RESPONSE TO THE FEB 4 AMERICAS COLUMN BY CARLOS BALL I UNDERSTAND THAT MR BALL IS A FREELANCE WRITER WHOSE VIEWS DO NOT REPRESENT THE WALL STREET JOURNAL'S EDITORIAL POLICY NEVERTHELESS INASMUCH AS MR BALL'S ARTICLE CONTAINS FALSE AND MISLEADING STATEMENTS ABOUT MY FAMILY MY INVOLVEMENT WITH BANCO LATINO MY FAMILY'S BUSINESS VENTURES KNOWN AS ODC COMPANIES AND OUR VIEWS ABOUT THE FUTURE OF VENEZUELA I HAVE TO OBJECT THE SUGGESTION THAT I AM PART OF A CONTROLLING GROUP OF BANCO LATINO IS FALSE AT ALL TIMES SINCE I BECAME ONE OF 10 DIRECTORS OF THE BANK IN LATE 1992 I SERVED ONLY AS AN OUTSIDE DIRECTOR AND WAS NEVER INVOLVED IN THE MANAGEMENT OF THE BANK OR ITS DAYTODAY OPERATIONS I PLAYED NO ROLE WHATSOEVER IN THE EVENTS THAT LED TO THE INTERVENTION IN THE BANK MOREOVER BANCO LATINO HAS NEVER SUFFERED ANY CREDIT LOSSES FROM TRANSACTIONS WITH ODC COMPANIES AT THE TIME OF THE INTERVENTION ALL ODC COMPANIES' TRANSACTIONS WERE CURRENT AND IN GOOD STANDING THE ARTICLE STATES THAT CADA OUR SUPERMARKET CHAIN IN VENEZUELA AND BANCO LATINO WERE SIPHONED OFF TO PURCHASE PUEBLO SUPERMARKETS OUR PUERTO RICO AND FLORIDABASED SUPERMARKETS WHEN IN FACT NEITHER ORGANIZATION PROVIDED ANY FINANCING THE BANK FINANCING FOR THE ACQUISITION WAS PROVIDED BY A SYNDICATED BANK LOAN OF 12 SUBSTANTIAL USBASED MONEYCENTER BANKS HEADED BY CHASE MANHATTAN BANK ALONG WITH THE BANK OF NOVA SCOTIA BANCO LATINO DID NOT PARTICIPATE NOR DID ANY OTHER VENEZUELAN INSTITUTION THE ARTICLE ATTRIBUTES THE INTERNATIONAL EXPANSION OF COMPANIES COMPRISING ODC TO A DESIRE OF THE CISNEROS FAMILY TO REDUCE EXPOSURE IN VENEZUELA FOLLOWING THE COUP ATTEMPT IN NOVEMBER 1992 THIS IS FALSE MR BALL SPECIFICALLY REFERS TO THE PURCHASE OF UNIVISION AS EVIDENCE THAT OUR COMPANIES ARE ABANDONING VENEZUELA BECAUSE OF POLITICAL TURMOIL NOTHING COULD BE FURTHER FROM THE TRUTH THE PURCHASE OF UNIVISION WAS ANNOUNCED APRIL 8 1992 THE PURCHASE OF A 55 MILLION BUSINESS IS NOT DONE OVERNIGHT NEGOTIATIONS TO BUY UNIVISION BEGAN EARLY IN OCTOBER 1991 IT IS EVIDENT TO US THAT THERE IS NO LINK AS MR BALL STATES BETWEEN THE PURCHASE OF UNIVISION AND THE NOVEMBER 1992 COUP ATTEMPT OUR EXPANSION OUTSIDE OF VENEZUELA DOES NOT MEAN WE'RE NEGLECTING OUR VENEZUELAN BUSINESSES ON THE CONTRARY OUR INVOLVEMENTS IN BUSINESSES SUCH AS UNIVISION AND PUEBLO HAVE PROVIDED IMPORTANT OUTLETS FOR VENEZUELAN PRODUCTS AND SIGNIFICANT ECONOMIC BENEFITS AND OPPORTUNITIES FOR VENEZUELAN BUSINESSES BOTH IN AND OUTSIDE OF THE ODC GROUP OUR JOINT VENTURES WITH DIFFERENT WORLDCLASS COMPANIES AND OTHER ACQUISITIONS THAT OPERATE SOLELY WITHIN VENEZUELA FURTHER CONFIRM OUR BELIEF IN THE VITALITY OF VENEZUELA AND ITS ECONOMY IT IS TRUE THAT WE ARE IN THE PROCESS OF SELLING COMPANIES IN VENEZUELA BUT WE ARE ALSO IN THE PROCESS OF ACQUIRING OTHER COMPANIES IN VENEZUELA AND WILL CONTINUE TO DO SO WE HAVE MORE THAN 15 JOINT VENTURES WITH MAJOR AMERICAN COMPANIES IN VENEZUELA THE MOST RECENT INCLUDE MOTOROLA AND SPRINT COMPLETED IN 1993 SOON WE WILL OFFICIALLY ANNOUNCE A SUBSTANTIAL ADDITIONAL INVESTMENT IN VENEZUELA THIS MAKES IT CLEAR THAT FAR FROM DECIDING TO CUT ITS LOSSES WIPE THE SLATE CLEAN AND GET OUT OF VENEZUELA WE HAVE GREAT CONFIDENCE THAT THE CURRENT ECONOMIC DIFFICULTIES OF THE COUNTRY WILL BE OVERCOME AND THAT VENEZUELA AS WELL AS OUR BUSINESS ENTERPRISES LOCATED THERE WILL RESUME THE GROWTH AND DEVELOPMENT THAT BEGAN IN 1929 MY FATHER DIEGO CISNEROS BEGAN HIS FIRST COMPANY IN 1929 AND THEREAFTER DEVELOPED A VARIETY OF BUSINESSES IN FIELDS SUCH AS RETAILING THE MANUFACTURE OF CONSUMER GOODS AND TELEVISION AS HIS CHILDREN WE HAVE CONTINUED TO CARRY OUT HIS ENTREPRENEURIAL VISION BOTH WITHIN VENEZUELA AND ELSEWHERE THE ARTICLE SUGGESTS THAT SOME SHAREHOLDERS OF BANCO LATINO OWE THEIR SUCCESS TO THEIR POLITICAL CONNECTIONS BECOMING MULTIMILLIONAIRES PRACTICALLY OVERNIGHT FROM QUASIPUBLIC PROJECTS IN THE CASE OF THE CISNEROS FAMILY NOTHING COULD BE FURTHER FROM THE TRUTH 9402080048 940208 BUSINESS BRIEF CHEMICAL BANKING CORP CHAIRMAN ESTIMATES DECLINE IN PROFIT FOR FIRST QUARTER WALTER V SHIPLEY CHAIRMAN OF CHEMICAL BANKING CORP ESTIMATED THAT THE NEW YORKBASED BANK HOLDING COMPANY WILL EARN 120 TO 125 A SHARE IN THE FIRST QUARTER AND 490 TO 6 A SHARE FOR ALL OF 1994 CHEMICAL EARNED 135 IN THE FIRST QUARTER OF 1993 AND 577 FOR THE FULL YEAR THE FIRST QUARTER OF 1993 INCLUDED A 14CENTASHARE GAIN FROM AN ACCOUNTING ADJUSTMENT IN A SPEECH AT AN AMERICAN BANKERS ASSOCIATION CONFERENCE IN NEW YORK CITY MR SHIPLEY ALSO SAID THE FEDERAL RESERVE BOARD'S ACTION FRIDAY RAISING THE FEDERAL FUNDS' RATE AT WHICH BANKS LEND FUNDS TO EACH OTHER WOULDN'T SIGNIFICANTLY AFFECT CHEMICAL'S EARNINGS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CHEMICAL CLOSED AT 3725 UP 25 CENTS ON VOLUME OF 18 MILLION SHARES 9402080047 940208 INTERNATIONAL BRIEF DALGETY PLC FISCAL FIRSTHALF PROFIT FLAT PRICES CUT FOR SOME RETAILERS UK FOOD SUPPLIER DALGETY PLC REPORTED NEARLY FLAT EARNINGS FOR ITS FISCAL FIRST HALF ENDED DEC 31 AND MEANWHILE THE COMPANY CUT PRICES FOR INGREDIENTS SOLD TO SOME US RESTAURANTS FOR THE HALF DALGETY REPORTED PRETAX PROFIT ROSE 04 TO 564 MILLION 831 MILLION FROM 62 MILLION BUT EARNINGS PER SHARE DROPPED 7 TO 172 PENCE 253 CENTS FROM 185 PENCE DUE TO AN INCREASE IN ITS TAX RATE US RETAILERS HAVE CALLED FOR PRICE CUTS SAID CHIEF EXECUTIVE RICHARD CLOTHIE DALGETY HAS NEGOTIATED PRICE CONCESSIONS WITH GROWING RESTAURANTS TO MAKE UP FOR LOWER PROFIT MARGINS WITH HIGHER SALES PROFIT IN DALGETY'S US DISTRIBUTION UNIT MARTINBROWER CO HAS GROWN BUT NOT AS FAST AS SALES DALGETY SAID OPERATING PROFIT AT THE UNIT ROSE 16 TO 81 MILLION FOR THE SIX MONTHS SALES ROSE 24 TO 146 BILLION 215 BILLION 9402080046 940208 BUSINESS BRIEF US BANKNOTE CORP COMPANY OBTAINS CONTRACT TO PRINT US FOOD STAMPS US BANKNOTE CORP SAID IT RECEIVED AN 837 MILLION 20MONTH CONTRACT TO PRINT FOOD STAMPS FOR THE US DEPARTMENT OF AGRICULTURE INCLUDING A ONEYEAR RENEWAL OPTION UNDER TERMS OF THE CONTRACT WHICH RUNS THROUGH SEPTEMBER 1995 US BANKNOTE IN NEW YORK WILL DESIGN DEVELOP AND TEST THE NEW FOOD STAMP WATERMARK FOR THE FEDERAL AGENCY IN 1993 US BANKNOTE WHICH ALSO PRINTS SECURITIES DOCUMENTS TRAVELERS CHECKS AND OTHER HIGHSECURITY DOCUMENTS DERIVED 40 MILLION OR 20 OF ITS ANNUAL REVENUE FROM ITS FOOD STAMP CONTRACT IN NEW YORK STOCK EXCHANGE LATE TRADING US BANKNOTE GAINED 25 CENTS OR 57 TO CLOSE AT 4625 A SHARE 9402080044 940208 BUSINESS BRIEF CINCINNATI BELL INC NET LOSS OF 1068 MILLION IS REPORTED FOR 4TH QUARTER CINCINNATI BELL INC REPORTED A 1068 MILLION FOURTHQUARTER LOSS AND REPEATED PREVIOUS FORECASTS THAT IT EXPECTS LOWER OPERATING EARNINGS IN THE FIRST QUARTER OF 1994 THE CINCINNATIBASED TELECOMMUNICATIONS COMPANY REPORTED A NET LOSS EQUAL TO 169 A SHARE FOR THE FOURTH QUARTER COMPARED WITH A YEAREARLIER LOSS OF 14 MILLION OR ONE CENT A SHARE REVENUE ROSE 4 TO 2872 MILLION FROM 276 MILLION PRETAX CHARGES OF 102 MILLION FOR RESTRUCTURING AND EXPECTED SALE AT A LOSS OF CBIS FEDERAL AN INFORMATION SERVICES BUSINESS HAD THE MOST SIGNIFICANT IMPACT ON FOURTHQUARTER RESULTS THE CBIS CHARGES REDUCED RESULTS IN THE QUARTER BY 88 MILLION OR 139 A SHARE CINCINNATI BELL SAID IN THE FOURTH QUARTER ITS MAIN OPERATING UNIT CINCINNATI BELL TELEPHONE HAD OPERATING PROFIT OF 183 MILLION UP 17 FROM 156 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CINCINNATI BELL SHARES FELL 125 CENTS TO CLOSE AT 17875 A SHARE 9402080043 940208 BUSINESS BRIEF US HEALTHCARE INC FOURTHPERIOD NET ROSE 53 AMID REDUCED MEDICAL COSTS US HEALTHCARE INC EXCEEDING ANALYSTS' EXPECTATIONS SAID THAT FOURTHQUARTER NET INCOME ROSE 53 AMID REDUCED MEDICAL COSTS THE BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION REPORTED FOURTHQUARTER PROFIT OF 912 MILLION OR 84 CENTS A SHARE WELL AHEAD OF ANALYSTS' EXPECTATIONS OF ABOUT 73 CENTS A SHARE A YEAR EARLIER US HEALTHCARE HAD NET INCOME OF 597 MILLION OR 55 CENTS A SHARE REVENUE FOR THE QUARTER ROSE 19 TO 6801 MILLION FROM 5733 MILLION COSTAS C NICOLAIDES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE COMPANY ATTRIBUTED THE ROBUST QUARTER TO THE COMPANY'S EFFORTS TO REDUCE MEDICAL COSTS AMONG HOSPITALS AND OTHER HEALTHCARE PROVIDERS ON THE NASDAQ STOCK MARKET SHARES OF US HEALTHCARE CLOSED AT 62125 OFF 1625 IN HEAVY TRADING A MOVE ANALYSTS ATTRIBUTED TO PROFITTAKING AMONG INVESTORS 9402080042 940208 BUSINESS BRIEF WESTCOAST ENERGY INC EXPANSION OF GAS PIPELINE TO COST ABOUT 551 MILLION WESTCOAST ENERGY INC SAID IT PLANS TO SPEND ABOUT 74 MILLION CANADIAN DOLLARS 551 MILLION THIS YEAR EXPANDING PARTS OF ITS BRITISH COLUMBIA GASPIPELINE SYSTEM A SPOKESMAN FOR THE VANCOUVER BRITISH COLUMBIA PIPELINE AND GASDISTRIBUTION COMPANY ESTIMATED THAT TWO PHASES OF THE PROJECT SLATED FOR COMPLETION BY YEAR END WILL COST C55 MILLION AND C19 MILLION RESPECTIVELY WESTCOAST SAID IT PLANS TO BUILD THE NEW GASTRANSPORTATION FACILITIES IN NORTHEASTERN BRITISH COLUMBIA NEAR A NUMBER OF LARGE RECENT NATURALGAS DISCOVERIES WESTCOAST PLANS TO FILE A REGULATORY APPLICATION FOR THE EXPANSION WITHIN THE NEXT TWO WEEKS THE SPOKESMAN SAID 9402080041 940208 BUSINESS BRIEF LEGENT CORP US COURT DISMISSES ACTION ALLEGING SECURITIES VIOLATION LEGENT CORP SAID A FEDERAL COURT IN VIRGINIA DISMISSED A SECURITIES CLASSACTION LAWSUIT AGAINST THE MAINFRAME SOFTWARE CONCERN THE HERNDON VA COMPANY AND SEVERAL OFFICERS AND DIRECTORS HAD BEEN SUED BY SHAREHOLDERS IN JULY THE SUIT ALLEGED THEY VIOLATED FEDERAL SECURITIES LAWS BY ISSUING FALSE AND MISLEADING STATEMENTS THE SUIT HAD BEEN FILED AFTER LEGENT PROJECTED LOWER EARNINGS FOR THE FISCAL THIRD QUARTER WHEN ANALYSTS HAD BEEN EXPECTING A HEALTHY INCREASE LEGENT SHARES IN JULY TRADED AS HIGH AS 36 A SHARE AND AS LOW AS 1550 A SHARE LEGENT PRESIDENT AND CHIEF EXECUTIVE JOHN F BURTON CALLED THE SUIT TYPICAL OF A TREND FOR SUITS TO BE FILED AGAINST COMPANIES WITH VOLATILE STOCK PRICES FOLLOWING A DECLINE IN THE STOCK PRICE WE HOPE OUR ACTIONS WILL ENCOURAGE OTHER COMPANIES TO STAND THEIR GROUND AGAINST THESE SUITS AND EVENTUALLY HELP REVERSE THIS TREND HE SAID 9402080040 940208 TECHNOLOGY BRIEF AMERICAN TELEPHONE & TELEGRAPH VENTURE CAPITAL ARM BUYS EQUITY STAKE IN TOPOMETRIX AMERICAN TELEPHONE & TELEGRAPH CO'S VENTURE CAPITAL ARM HAS TAKEN A SMALL EQUITY STAKE IN TOPOMETRIX CORP THE MOVE IS PART OF A DEAL UNDER WHICH TOPOMETRIX WILL EXCLUSIVELY DEVELOP AND MARKET AN AT&T TECHNOLOGY FOR ULTRAPOWERFUL MICROSCOPES BASED IN SANTA CLARA CALIF TOPOMETRIX A PRIVATELY HELD MICROSCOPE MAKER WILL LICENSE AT&T BELL LABORATORIES' PATENTS ON THE NEARFIELD SCANNING OPTICAL MICROSCOPE IT ALSO WILL ACQUIRE AN AT&T COMPANY NANOVISION CORP FORMED IN 1992 TO COMMERCIALIZE THE INVENTION ALTHOUGH FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED SHIRLEY CLAYTON TOPOMETRIX'S VICE PRESIDENT OF FINANCE SAID AT&T VENTURES WOULD END UP WITH A STAKE OF SOMEWHAT LESS THAN 10 IN TOPOMETRIX NEARFIELD SCANNING OPTICAL MICROSCOPES WHICH ARE OVER 10 TIMES MORE POWERFUL THAN OTHER OPTICAL MICROSCOPES ARE EXPECTED TO BE USED IN MAKING ADVANCED SEMICONDUCTORS MAPPING HUMAN GENES AND OTHER SCIENTIFIC FIELDS 9402080039 940208 BUSINESS BRIEF UNITED ASSET MANAGEMENT CORP RISE IN NET FOR FOURTH PERIOD OF 27 TO 29 TO BE POSTED UNITED ASSET MANAGEMENT CORP CITING RISING FEES AND CONTRIBUTIONS FROM ACQUISITIONS SAID IT EXPECTS TO REPORT A 27 TO 29 RISE IN FOURTHQUARTER NET INCOME ON A 9 REVENUE GAIN WILLIAM H PARK SENIOR VICE PRESIDENT SAID THE BOSTON MONEYMANAGEMENT COMPANY EXPECTS TO REPORT NET INCOME OF 146 MILLION TO 148 MILLION OR 49 CENTS TO 50 CENTS A SHARE FOR THE FOURTH QUARTER ON REVENUE OF ABOUT 118 MILLION IN THE YEAREARLIER QUARTER UNITED ASSET HAD NET INCOME OF 115 MILLION OR 44 CENTS A SHARE ON REVENUE OF 108 MILLION RESULTS HAVE BEEN RESTATED TO REFLECT A POOLING OF INTERESTS FROM ACQUISITIONS UNITED ASSET OWNS 38 MONEYMANAGEMENT UNITS WITH 105 BILLION IN ASSETS MR PARK SAID THE QUARTER'S REVENUE INCREASED BECAUSE OF MARKET APPRECIATION MARKET PERFORMANCE COUPLED WITH CLIENT CONTRIBUTIONS TO PORTFOLIOS INCREASED TOTAL ASSETS 12 TO 84 BILLION AT DEC 31 1993 FIVE ACQUISITIONS LAST YEAR AND TWO STARTUPS CONTRIBUTED THE BALANCE OF ASSET GAINS 9402080038 940208 MARKETING BRIEF NOTED WHO'S NEWS MARTIN SINGERMAN 67 WAS NAMED PUBLISHER OF NEWS CORP'S NEW YORK POST NEWSPAPER HE SUCCEEDS PATRICK J PURCELL WHO HAS AGREED TO PURCHASE THE BOSTON HERALD NEWSPAPER FROM NEWS CORP MR SINGERMAN A CONSULTANT TO NEWS CORP WAS PRESIDENT AND CHIEF EXECUTIVE OF NEWS AMERICA PUBLISHING NEWS CORP'S US MAGAZINE AND NEWSPAPER PUBLISHING ARM FROM 1985 TO 1991 MICHAEL NATHANSON 38 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF NEW REGENCY PRODUCTIONS A BURBANK CALIF MOVIEPRODUCTION COMPANY LAST MONTH HE RESIGNED AS EXECUTIVE VICE PRESIDENT OF SONY CORP'S COLUMBIA PICTURES STUDIO BOB PFEIFER 38 WAS NAMED EXECUTIVE VICE PRESIDENT AND HEAD OF WALT DISNEY CO'S HOLLYWOOD RECORDS LABEL DISNEY WOULDN'T SAY WHETHER IT PLANS TO NAME A PRESIDENT OF THE LABEL A POST THAT HAS BEEN VACANT SINCE PETER PATERNO LEFT IN NOVEMBER WESLEY HEIN AN EXECUTIVE VICE PRESIDENT WHO HEADED HOLLYWOOD RECORDS SINCE NOVEMBER IS LEAVING THE COMPANY DISNEY SAID 9402080037 940208 TECHNOLOGY BRIEF SONY CORP ELECTRONICS UNIT TO UNVEIL MAP DEVICE FOR MOTORISTS SONY ELECTRONICS INC SAID IT WILL INTRODUCE A DEVICE THAT WILL AMONG OTHERS THINGS ALLOW MOTORISTS TO FIND DIRECTIONS WITHOUT HAVING TO ASK AT A GAS STATION THE ELECTRONICS CONCERN IN PARK RIDGE NJ SAID THE DEVICE WHICH USES SATELLITE POSITIONING TECHNOLOGY WILL CONTAIN MAPS AND OTHER TRAVEL INFORMATION THAT CAN BE DISPLAYED ON A FIVEINCH COLOR SCREEN USING A SATELLITE NETWORK THE DEVICE CAN PINPOINT A DRIVER'S LOCATION AND SHOW THAT LOCATION IN RELATION TO THE PERSON'S INTENDED DESTINATION SONY SAID SONY ELECTRONICS A UNIT OF JAPAN'S SONY CORP PLANS TO INTRODUCE THE DEVICE IN CALIFORNIA AND PARTS OF NEVADA IN THE SECOND HALF OF 1994 SIMILAR DEVICES HAVE BEEN AVAILABLE IN JAPAN FOR ABOUT TWO YEARS A SONY SPOKESMAN SAID AND SELL FOR ABOUT 2500 PRICES FOR THE PLANNED US VERSIONS HAVEN'T BEEN DECIDED HE SAID OTHER COMPANIES INCLUDING TRIMBLE NAVIGATION LTD OFFER SUCH SYSTEMS WITH DIFFERING CAPABILITIES 9402080036 940208 BUSINESS BRIEF RIVERWOOD INTERNATIONAL CORP FOURTHPERIOD LOSS POSTED PRICES WEAK DEMAND CITED RIVERWOOD INTERNATIONAL CORP CITING CONTINUING DECLINES IN CONTAINERBOARD PRICES AND WEAK INTERNATIONAL DEMAND REPORTED A NET LOSS OF 46 MILLION OR SEVEN CENTS A SHARE FOR ITS 1993 FOURTH QUARTER COMPARED WITH NET INCOME OF 82 MILLION OR 13 CENTS A SHARE IN THE YEAR EARLIER QUARTER SALES FOR THE QUARTER SLID 4 TO 2868 MILLION FROM 2994 MILLION FOR THE YEAR THE ATLANTA PAPERBOARD AND PACKAGING COMPANY REPORTED A PLUNGE IN NET INCOME TO 11 MILLION OR TWO CENTS A SHARE FROM 438 MILLION OR 78 CENTS A SHARE IN 1992 AS SALES FOR THE YEAR REMAINED ESSENTIALLY FLAT AT 112 BILLION RESULTS FOR BOTH THE QUARTER AND THE YEAR INCLUDED A 25 MILLION RESTRUCTURING CHARGE FROM EFFORTS TO CONSOLIDATE OPERATIONS OFFSET IN PART BY A 17 MILLION GAIN ON THE SALE OF TIMBERLANDS RESULTS FOR THE YEAR ALSO INCLUDED A CHARGE OF 21 MILLION FROM RESTATING POSTEMPLOYMENT BENEFITS UNDER NEW ACCOUNTING STANDARDS 9402080035 940208 THE CLINTON BUDGET LABOR DEPARTMENT SEEKS 17 RISE IN EMPLOYMENT TRAINING OUTLAYS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION THINKS IT HAS SOLVED THE JOBTRAINING PUZZLE ARMED WITH A RAFT OF STUDIES ON HOW BEST TO FIND JOBS FOR INNERCITY POOR PEOPLE OUTOFWORK FACTORY WORKERS AND EVERYONE ELSE FROM THE ELDERLY TO NATIVE AMERICANS THE LABOR DEPARTMENT IS TRUMPETING ITS NEW METHODS GET TO THE UNEMPLOYED EARLIER TRAIN INNERCITY KIDS LONGER GET INNERCITY ADULTS BETTER JOB DATA IN THE PAST TWO THINGS HAVE BEEN MISSING FROM JOBTRAINING EFFORTS THE MONEY TO MAKE THINGS HAPPEN AND THE GUMPTION TO EXPAND SMALL PROGRAMS THAT WORK AND CUT ONES THAT DON'T THE ADMINISTRATION'S BUDGET THAT WAS RELEASED YESTERDAY WOULD GO A LONG WAY TOWARD SOLVING THE FIRST PROBLEM WHILE FUNDS FOR DISCRETIONARY FEDERAL PROGRAMS ARE BEING SLASHED ACROSS THE GOVERNMENT THE LABOR DEPARTMENT'S EMPLOYMENT AND TRAINING BUDGET WOULD JUMP A HUGE 17 TO 74 BILLION AT THE CORE OF THE NEW TRAINING MONEY WOULD BE A 31 BOOST FOR HELPING DISLOCATED WORKERS OFTEN MIDDLECLASS PEOPLE WHO HAVE LOST THEIR JOBS BECAUSE OF TECHNOLOGY CORPORATE RESTRUCTURING MILITARY CUTBACKS AND INTERNATIONAL TRADE AT THE SAME TIME PROGRAMS FOR THE INNERCITY POOR WOULD RISE 13 MORE THAN FOUR TIMES THE PROJECTED RATE OF INFLATION WITHIN THOSE MAJOR AREAS THE LABOR DEPARTMENT IS USING A RAFT OF STUDIES AS GUIDEPOSTS FOR HOW TO TARGET THE FUNDS FOR THE INNERCITY POOR A LARGE BOOST WOULD GO TO JOB CORPS A PROGRAM THAT TAKES CITY KIDS OUT OF THEIR NEIGHBORHOODS AND PLACES THEM IN A MILITARYSTYLE ENVIRONMENT FOR AS MUCH AS TWO YEARS THE PROGRAM IS A WINNER SAYS LABOR SECRETARY ROBERT REICH WHO WANTS TO SEE THE JOB CORPS BUDGET INCREASE 11 SIMILARLY THE ADMINISTRATION WOULD INCREASE SPENDING ON YOUTH SUMMER JOBS BY 168 MILLION TO 106 BILLION AND TRIPLE SPENDING TO 150 MILLION FOR A PROGRAM THAT WOULD HELP LINK HIGHSCHOOLERS TO JOBS IF THEY DON'T GO ON TO COLLEGE AT THE SAME TIME THE ADMINISTRATION WANTS TO SLASH BY 9 OR 60 MILLION SPENDING ON SHORTTERM TRAINING FOR POOR YOUTHS A 30MONTH STUDY RECENTLY COMPLETED SHOWED THAT YOUTHS USING THE PROGRAM ACTUALLY EARNED LESS THAN A CONTROL GROUP WE HAVE TO MOVE DOLLARS TOWARD THOSE EFFORTS THAT HAVE DEMONSTRATED EFFECTIVENESS SAID DOUGLAS ROSS MR REICH'S POINT MAN FOR JOB TRAINING THE PROOF HE CONTENDS IS IN THE STUDIES TAKE FOR EXAMPLE A NEW JERSEY PILOT PROGRAM THAT SHOWED PEOPLE GET OFF UNEMPLOYMENT EARLIER IF AUTHORITIES TARGET TRAINING FUNDS TO WORKERS WHO MOST NEED HELP IN THE NEW JERSEY PROGRAM OFFICIALS DISTINGUISHED BETWEEN WORKERS WHO WERE TEMPORARILY LAID OFF AND THOSE WHO ARE PERMANENTLY DISMISSED THE LATTER GROUP GOT MOST TRAINING FUNDS AND THE HELP REACHED THEM MORE QUICKLY PROFILING UNEMPLOYED WORKERS AS THE NEW JERSEY PRACTICE IS KNOWN HAS SINCE GONE NATIONAL IN AN INTERVIEW MR REICH SAID THE AGENCY HE INHERITED WAS NOT JUST A BACKWATER BUT A BACKWATER WITHIN A BACKWATER BUT ALL IT NEEDED WAS TO BE REINVIGORATED TO FIND THE BETTER IDEAS HE SAID THERE'S NO MAGIC IN LISTENING TO EMPLOYEES WHO HAVE GOOD IDEAS MR REICH SAID BUT SOME PEOPLE ARE SKEPTICAL THERE IS NO SOLUTION IN WHAT THEY HAVE FOUND ARGUES STEVEN HOFMAN FORMER ASSISTANT SECRETARY AT THE BUSH LABOR DEPARTMENT THEY HAVE DROPPED ANY ATTEMPT TO MAKE THE LOCAL TRAINING PROVIDERS ACCOUNTABLE FOR RESULTS UNTIL YOU MAKE THEM ACCOUNTABLE THEY WILL CONTINUE TO TRAIN PEOPLE FOR JOBS THAT DON'T EXIST 9402080034 940208 HEARD ON THE STREET TOP MUTUALFUND MANAGERS ARE BUYING DESPITE FRIDAY'S STOCKMARKET TUMBLE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL AMID THE YOYOING STOCK MARKET THE COUNTRY'S MOSTCELEBRATED MUTUALFUND MANAGERS SAY THERE ARE PLENTY OF STOCKS THAT STILL LOOK EXPENSIVE AND MUCH THAT WORRIES THEM MEANWHILE THEY'RE BUYING SO FAR THEIR ACTIONS HAVE BEEN MORE ON THE MONEY THAN THEIR WORDS AS THE DOW JONES INDUSTRIAL AVERAGE HAS ALREADY RECOVERED MORE THAN A THIRD OF THE GROUND IT LOST IN FRIDAY'S TUMBLE FRIDAY'S ACTION IS REALLY AN INSIGNIFICANT LITTLE JIGGLE ON THE LONGTERM STOCK CHART SAYS JEFF VINIK MANAGER OF THE 34 BILLION FIDELITY MAGELLAN FUND THE COUNTRY'S LARGEST MUTUAL FUND IT WAS ONLY A 2 DROP ALL THE MARKET DID WAS GIVE BACK SOME OF JANUARY'S GAINS STILL HE SAYS I CONTINUE TO BELIEVE THAT 1994 IS GOING TO BE A DIFFICULT YEAR FOR INVESTORS SO IS MR VINIK SELLING STOCK NOT QUITE BOTH FRIDAY AND YESTERDAY I'VE BEEN MORE ON THE BUY SIDE THAN ON THE SELL SIDE HE SAYS IN RECENT DAYS HE'S BEEN ADDING TO EXISTING POSITIONS HE'S ALSO BEEN VENTURING INTO FINANCIAL STOCKS INCLUDING INSURERS ON THE BELIEF THAT THEIR RECENT BEATING MAKES THEM GOOD VALUES JOHN NEFF MANAGER OF THE 111 BILLION VANGUARD/WINDSOR FUND ALSO SOUNDS CAUTIOUS EVEN AS HE BUYS YOU JUST DON'T KEEP MOVING UP FOREVER WITHOUT SOME INDIGESTION ALONG THE WAY HE SAYS AT SOME POINT YOU'RE GOING TO GET A CORRECTION AND MAYBE THIS IS IT NONETHELESS MR NEFF USED THE MARKET DROP TO ADD TO HIS STAKE IN BANK AND OIL STOCKS WHEN STOCK PRICES FALL YOU HAVE TO STEP UP AND BUY IF YOU HAVE A CONSISTENT BONE IN YOUR BODY HE SAYS VANGUARD/WINDSOR'S BIGGEST POSITIONS INCLUDE AETNA LIFE & CASUALTY ALUMINUM CO OF AMERICA BANKERS TRUST NEW YORK BURLINGTON RESOURCES CIGNA AND CITICORP BUT MR NEFF ALSO HAS MORE THAN 20 OF HIS FUND'S ASSETS IN CASH THE MOST HE ALLOWS HIS BIGGEST CONCERN IS INFLATION WHICH HE SAYS COULD RISE TO 35 OR 4 INFLATION IS ONE BOGEYMAN I SEE HE SAYS BUT THERE ARE 10 OTHER THINGS THAT COULD JAR PEOPLE EXPECTATIONS ARE SO HIGH MR NEFF HAS LATELY BEEN TRIMMING HIS HOLDINGS OF EUROPEAN CYCLICAL STOCKS WHICH HAVE RISEN SHARPLY IN ANTICIPATION OF AN ECONOMIC RECOVERY AND HE WORRIES THAT US CYCLICALS MAY BE A LITTLE BIT AHEAD OF THEMSELVES THAT SENTIMENT IS ECHOED BY JAMES CRAIG MANAGER OF THE 94 BILLION JANUS FUND MR CRAIG IS AVOIDING EUROPEAN CYCLICAL STOCKS AND SOME OF THE MORE HIGHLY CYCLICAL US STOCKS SUCH AS THE PAPER COMPANIES AND THE STEEL MAKERS I DO HAVE A BIG POSITION IN GENERAL MOTORS I THINK IT'S A ONCEINALIFETIME TURNAROUND HE SAYS BUT I'M REALLY LOOKING AT CHEAP GROWTH INCLUDING MATTEL PEPSICO PRICE/COSTCO AND WALMART STORES HE ADDS MR CRAIG SAYS THE KEY TO A STOCK'S PERFORMANCE IS ITS EARNINGS GROWTH AND THAT'S WHY HE'S STICKING WITH STEADY GROWTH COMPANIES MANY OF WHICH HAVE BEEN BEATEN DOWN DURING THE PAST TWO YEARS I THINK THE STEADY PREDICTABLE GROWTH COMPANIES ARE THE BEST PLACE TO BE RIGHT NOW HE SAYS MR CRAIG'S SEARCH FOR GROWTH LED HIM YESTERDAY TO BOOST HIS POSITION IN TWO SWISS BANKS SWISS BANK CORP AND UNION BANK OF SWITZERLAND THESE COMPANIES ARE IN THE MIDDLE OF A BIG EARNINGS SURGE HE SAYS THEY'RE AMONG THE CHEAPEST BANKS IN EUROPE YET THEY'RE AMONG THE HIGHEST QUALITY IN THE WORLD JANUS FUND HAS 16 OF ITS ASSETS IN FOREIGN STOCKS 64 IN US STOCKS AND A HEFTY 20 IN CASH MR CRAIG ISN'T ENTIRELY UNHAPPY ABOUT THE RECENT TURMOIL IN THE MARKETS I WELCOME THE RETURN OF SOME VOLATILITY HE SAYS PEOPLE DON'T LIKE IT BUT IT DOES HAVE A BENEFIT VOLATILITY IS GOOD FOR MUTUALFUND MANAGERS ON AN EXECUTION BASIS BECAUSE IT MAKES IT EASIER TO BUY AND SELL THINGS FOR MANAGER G KENNETH HEEBNER THE FEDERAL RESERVE'S DECISION LAST WEEK TO MAKE A PREEMPTIVE STRIKE AGAINST INFLATION BY NUDGING UP SHORTTERM INTEREST RATES MERELY AFFIRMS WHAT HE ALREADY SEES A BOOMING ECONOMY SUCH AN ENVIRONMENT SHOULD TRANSLATE INTO BIG EARNINGS GAINS FOR CYCLICAL COMPANIES SAYS MR HEEBNER MANAGER OF CGM CAPITAL DEVELOPMENT FUND HE'S A BIG INVESTOR IN FIRMS SUCH AS BETHLEHEM STEEL CATERPILLAR CHRYSLER DEERE FORD MOTOR GM AND UAL WHICH ARE ESPECIALLY SENSITIVE TO ECONOMIC UPS AND DOWNS HE SEES NO REASON TO ALTER HIS STANCE AFTER FRIDAY'S DROP I JUST THINK THERE'S A LOT OF OPPORTUNITY IN CYCLICAL STOCKS BUT LIKE THE OTHER TOP MANAGERS INTERVIEWED FOR THIS ARTICLE MR HEEBNER SEES PLENTY OF STOCKS HE DOESN'T LIKE HE BELIEVES THE MARKET'S MOST VULNERABLE COMPANIES CAN BE FOUND IN THE EMERGINGGROWTH SECTOR INCLUDING HIGHFLYING RESTAURANT AND RETAILING STOCKS CGM CAPITAL DEVELOPMENT WHICH IS CLOSED TO NEW INVESTORS RANKS AS THE FUND INDUSTRY'S SECONDBEST PERFORMING FUND DURING THE PAST 10 YEARS MR HEEBNER IS ALSO MANAGER OF CGM MUTUAL FUND A BALANCED FUND WHICH OWNS A MIXTURE OF STOCKS AND BONDS AND WHICH IS STILL OPEN TO NEW INVESTORS IN CGM MUTUAL I HAVE MADE A MAJOR SHIFT FROM GOVERNMENT BONDS TO INDUSTRIAL CORPORATES WITH LOW CREDIT RATINGS HE SAYS I'VE BOUGHT COMPANIES WHERE I THINK THERE WILL BE A LOT OF IMPROVEMENT IN THEIR CREDIT RATINGS BASED ON THE STRENGTH OF THE ECONOMY I DON'T THINK LONGTERM INTEREST RATES ARE GOING TO GO UP A LOT BUT EVEN IF INTEREST RATES DO RISE CAUSING BOND PRICES TO FALL MR HEEBNER EXPECTS THAT UPGRADES IN THE CREDIT RATINGS OF HIS BONDS WILL PRODUCE ENOUGH GAINS TO OFFSET THE DAMAGE CGM MUTUAL OWNS HIGHYIELD JUNK BONDS ISSUED BY DELTA AIR LINES UAL AND WHEELINGPITTSBURGH JOHN TEMPLETON THE LEGENDARY MUTUALFUND MANAGER WHO RETIRED A YEAR AGO HAS LONG BEEN A STOCKMARKET CHEERLEADER BUT EVEN HE IS ONLY FORECASTING MODERATE GAINS FOR STOCKS IN THE YEARS AHEAD WE'RE NO LONGER STARTING FROM A LOW POINT SO THE FUTURE GROWTH IS LIKELY TO BE LESS SPECTACULAR THAN IT WAS IN THE 1980S HE SAYS THE CHANCES ARE AS GOOD AS EVEN THAT SOMETIME BY THE END OF THE YEAR 2000 WE WILL SEE THE DOW AT 6000 I'M NOT STICKING MY NECK OUT MUCH TO SAY THAT BECAUSE IN AMERICAN HISTORY STOCKS HAVE DOUBLED EVERY 11 YEARS THE 81YEAROLD MR TEMPLETON WHO NOW DEVOTES HIMSELF TO CHURCH AND CHARITIBLE WORK SAYS HE'S NOT MAKING ANY CHANGES IN HIS PERSONAL PORTFOLIO FOLLOWING FRIDAY'S MARKET DROP IN ALL MY 54 YEARS IN THE INVESTMENT BUSINESS I HAVE NEVER THOUGHT I COULD DETERMINE WHERE BEAR MARKETS STARTED AND STOPPED HE SAYS BUT WHILE MR TEMPLETON DECLINES TO MAKE SHORTTERM MARKET PREDICTIONS HE SAYS THE FUNDAMENTALS OF AMERICAN BUSINESS ARE GOOD THE PROBABILITIES ARE THAT AMERICAN STOCKS THIS YEAR WILL PAY THE HIGHEST DIVIDENDS THEY HAVE EVER PAID AND HAVE THE HIGHEST EARNINGS THEY HAVE EVER HAD FINALLY THERE AREN'T ANY SIGNS OF A BUSINESS RECESSION HE SAYS THOSE ARE THREE INDICATORS OF BASIC VALUE ALL OF WHICH ARE OPTIMISTIC 9402080033 940208 PAYMENT TO PHARMOR DIRECTORS HOLDERS IN 1991 BUYBACK MAY BE RESCINDED BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL PHARMOR INC DIRECTORS AND OTHER SHAREHOLDERS COULD BE FORCED TO REPAY ABOUT 75 MILLION THAT THEY RECEIVED FROM THE DEEPDISCOUNT RETAILER IN A 1991 STOCK BUYBACK LAST MONTH A COURTAPPOINTED EXAMINER IN PHARMOR'S CHAPTER 11 BANKRUPTCYLAW CASE SAID THE CLOSELY HELD YOUNGSTOWN OHIO COMPANY WAS INSOLVENT WHEN IT BOUGHT BACK THE SHARES THE 75 MILLION HAD BEEN INVESTED IN PHARMOR IN 1991 BY CORPORATE PARTNERS LP AN INVESTMENT FUND AFFILIATED WITH LAZARD FRERES & CO FOR USE IN STOCK BUYBACKS STUART HERTZBERG AN ATTORNEY FOR THE UNSECURED CREDITORS' COMMITTEE IN THE CASE SAID HE WILL CONSULT WITH PHARMOR MANAGEMENT ABOUT TRYING TO RECOVER THE MONEY ACCORDING TO LEGAL SCHOLARS IT'S POSSIBLE UNDER SOME FEDERAL AND STATE LAWS TO RESCIND SUCH A REPURCHASE TRANSACTION IF IT TOOK PLACE WHEN A COMPANY WAS INSOLVENT UNDER CORPORATE LAW INSOLVENCY MEANS AN INABILITY TO PAY DEBTS WHEN THEY COME DUE IN THE ORDINARY COURSE OF BUSINESS OR HAVING LIABILITIES GREATER THAN ASSETS PROPERLY VALUED BANKRUPTCY LAW GIVES THE DEBTOR THE FIRST OPTION TO PURSUE SUCH AN ACTION AS FAR AS THE 75 MILLION WE ARE TRYING TO DETERMINE WHAT KINDS OF ACTIONS WE FEEL ARE APPROPRIATE MR HERTZBERG SAID HE ADDED THAT THERE ALSO MAY BE PROFITS TO RECOVER FROM SHAREHOLDERS INCLUDING PHARMOR CHAIRMAN DAVID SHAPIRA AND SEVERAL DIRECTORS ON STOCKOPTION TRANSACTIONS THAT ACCORDING TO THE EXAMINER'S REPORT OCCURRED AFTER THE OPTIONS EXPIRED MOREOVER IF CREDITORS DON'T PURSUE ACTIONS TO RECOVER THE MONEY JUDGE WILLIAM T BODOH THE BANKRUPTCYCOURT JUDGE OVERSEEING THE PHARMOR CASE IN YOUNGSTOWN IS EXPECTED TO AUTHORIZE A COURTAPPOINTED EXAMINER TO DO SO ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION JUDGE BODOH DECLINED TO COMMENT THE US ATTORNEY IN CLEVELAND IS ALSO UNDERSTOOD TO BE PLANNING A CRIMINAL INVESTIGATION OF THE STOCKOPTION TRANSACTIONS JOHN D SAMMON ASSISTANT US ATTORNEY ALSO DECLINED TO COMMENT DAVID ARMSTRONG ATTORNEY FOR MR SHAPIRA SAID HIS CLIENT SHOULDN'T HAVE TO RETURN THE MONEY HE RECEIVED IN THE STOCK BUYBACK BECAUSE PHARMOR WASN'T INSOLVENT AT THAT TIME IT WAS PAYING ITS BILLS AS THEY BECAME DUE IN AUGUST 1992 PHARMOR FILED FOR BANKRUPTCYLAW PROTECTION AFTER DISCLOSING IT WAS THE TARGET OF A FRAUD AND EMBEZZLEMENT SCHEME BY SEVERAL EXECUTIVES THE FRAUD CAME TO MORE THAN 500 MILLION AND SUBSEQUENT ACCOUNTING ADJUSTMENTS TOTALED ANOTHER APPOXIMATELY 500 MILLION ACCORDING TO THE COURT REPORT WHICH WAS WRITTEN BY EXAMINER JAY ALIX MICHAEL I MONUS PHARMOR'S COFOUNDER AND FORMER PRESIDENT WAS INDICTED ON 129 FEDERAL COUNTS AND FACES TRIAL TWO FORMER EXECUTIVES PATRICK FINN AND JEFFREY WALLEY HAVE PLEADED GUILTY TO FEDERAL CHARGES AND ARE COOPERATING WITH AUTHORITIES ACCORDING TO THE ALIX REPORT MR SHAPIRA AND SEVERAL OTHER DIRECTORS EXERCISED OPTIONS TO BUY PHARMOR STOCK IN SEPTEMBER 1990 EVEN THOUGH THE OPTIONS HAD EXPIRED IN JUNE OF THAT YEAR THE REPORT SAYS PROMISSORY NOTES WERE DATED TO SUGGEST THEY HAD BEEN EXERCISED IN JUNE LESS THAN A YEAR LATER SOME OF THAT STOCK WAS SOLD BACK TO PHARMOR WHICH DREW ON CORPORATE PARTNERS' 75 MILLION INVESTMENT ACCORDING TO THE REPORT MR SHAPIRA AND OTHER DIRECTORS SOLD SHARES BACK TO THE COMPANY IN 1991 FOR 2444 A SHARE FOR A PROFIT OF 1344 A SHARE THE REPORT SAYS MR SHAPIRA WHO WASN'T FOUND TO BE INVOLVED IN THE FRAUD BY THE COURT EXAMINER HAS SAID THE BOARD WAS TOLD BY ITS OUTSIDE ACCOUNTANTS AND ATTORNEYS THAT IT WAS PROPER TO EXERCISE THE OPTIONS AFTER THEY HAD EXPIRED MR ARMSTRONG HIS ATTORNEY SAID THE PROFITS WERE INSIGNIFICANT GIVEN THE AMOUNT OF MONEY MR SHAPIRA AND OTHER DIRECTORS LOST WHEN PHARMOR FILED FOR CHAPTER 11 HOWEVER ACCORDING TO RONALD COFFEE A LAW PROFESSOR AT CASE WESTERN RESERVE UNIVERSITY THE STOCKOPTION TRANSACTIONS MIGHT VIOLATE STATE CORPORATION LAWS COVERING THE DUTIES OF DIRECTORS OR THE ISSUANCE OF OPTIONS IF THESE OPTIONS ARE TRULY INVALID THAT IS TO SAY EXPIRED THEN IT SEEMS TO ME THERE MIGHT BE BREACH OF PERFORMANCE OBLIGATIONS ON THE PART OF THE DIRECTORS MR COFFEE SAID MOREOVER THERE MIGHT BE A VIOLATION OF FEDERAL SECURITIES LAWS HE ADDED IF THE OPTIONS WERE EXERCISED AND THE STOCK REPURCHASED BY PHARMOR UNDER CONDITIONS WHERE INDEPENDENT CORPORATE DECISIONMAKERS WERE NOT FULLY INFORMED SEPARATELY PEOPLE CLOSE TO THE US ATTORNEY'S OFFICE IN CLEVELAND SAID THE GOVERNMENT PLANS TO INVESTIGATE WHETHER NATHAN MONUS FATHER OF MICKAEL MONUS PROFITED AT PHARMOR'S EXPENSE WHEN HE WAS A DIRECTOR MR SAMMON THE ASSISTANT US ATTORNEY HAD NO COMMENT ON THE MATTER THE ALIX REPORT SAID NATHAN MONUS HELD PAID POSITIONS WITH COMPANIES THAT SUPPLIED PHARMOR WHILE HE WAS A DIRECTOR AND MAY HAVE TAKEN PART IN TRANSACTIONS THAT BENEFITED HIM AT THE COMPANY'S EXPENSE SAUL EISEN ATTORNEY FOR NATHAN MONUS WHO IS IN HIS EARLY 70S SAID NATE EMPHATICALLY DENIES ANY IMPROPRIETY WE BELIEVE THAT THE PHARMOR DIRECTORS KNEW OF NATE'S OUTSIDE INTERESTS 9402080032 940208 SAVE TOUGH EDUCATIONAL STANDARDS BY CHESTER E FINN JR TODAY THE NATIONAL ASSESSMENT GOVERNING BOARD IS LIKELY TO BE SHOT THROUGH THE HEART BY A VENGEFUL HOUSE EDUCATION AND LABOR COMMITTEE THE BOARD'S SIN INSISTING THAT THE NATION'S MOST IMPORTANT TEST OF STUDENT ACHIEVEMENT AND SCHOOL PERFORMANCE BE CONSTRUCTED AND ITS RESULTS REPORTED AROUND CLEAR STANDARDS OF WHAT AMERICAN YOUNGSTERS OUGHT TO KNOW AND BE ABLE TO DO BUT STANDARDS TESTS AND ACCOUNTABILITY ARE KEYS TO EDUCATION REFORM HOW ARE OUR CHILDREN AND SCHOOLS DOING COMPARED WITH HOW THEY OUGHT TO BE DOING COMPARED WITH THOSE IN THE NEXT STATE WITH FIVE YEARS AGO PARENTS VOTERS GOVERNORS LEGISLATORS AND BUSINESS LEADERS APPRECIATE THE IMPORTANCE OF SUCH INFORMATION SO DO MANY EDUCATORS YET POLITICAL ALLIES OF THE SCHOOL ESTABLISHMENT DO THEIR BEST TO ELIMINATE ALL WHO WOULD SUPPLY SUCH DATA THE BOARD CAME INTO EXISTENCE SIX YEARS AGO THE PRODUCT OF A RARE BIPARTISAN CONSENSUS THOUGH THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS NAEP HAD BEEN AROUND SINCE THE 1960S THE ACCOUNTABILITYSHY SCHOOL ESTABLISHMENT HAD INSISTED THAT TEST RESULTS BE KEPT OPAQUE OUTOFDATE UNAVAILABLE FOR INDIVIDUAL STATES AND COMMUNITIES AND DIVORCED FROM ANY NORMS OR STANDARDS THE DATA PRODUCED WITHIN THESE STRICTURES WERE SOUND BUT THEIR MAIN USERS WERE SCHOLARS AND POLICY WONKS NOT PARENTS AND IN THE ABSENCE OF NATIONAL BENCHMARKS NEARLY EVERY STATE AND LOCALITY BLITHELY REPORTED THAT ITS STUDENTS WERE SCORING ABOVE AVERAGE ON WHATEVER TESTS IT USED BY THE MID1980S ACUTE ANXIETY ABOUT THE NATION'S MEDIOCRE EDUCATIONAL PERFORMANCE HAD CREATED AN APPETITE FOR FASTER AND MORE USEFUL TEST RESULTS ANCHORED TO AN UNBIASED JUDGMENT ABOUT HOW GOOD IS GOOD ENOUGH EDUCATION SECRETARY WILLIAM BENNETT APPOINTED A BLUERIBBON COMMITTEE TO CONSIDER NAEP'S FUTURE IT INCLUDED TWO WELLKNOWN STATELEVEL EDUCATION REFORMERS OF THE DAY HILLARY RODHAM CLINTON OF ARKANSAS AND LAMAR ALEXANDER OF TENNESSEE THAT PANEL RECOMMENDED THAT NAEP BE EXPANDED AND ACCELERATED THAT STATELEVEL DATA BE ROUTINELY PROVIDED AND THAT AN INDEPENDENT GOVERNING BOARD BE CREATED TO SET ITS POLICIES IT WAS VITAL THE PANEL INSISTED THAT THE NATION'S REPORT CARD NOT BE ENTRUSTED TO BUREAUCRATS OR COLORED BY THE POLITICAL NEEDS OF ANY ADMINISTRATION THE 24MEMBER GOVERNING BOARD DEBUTED IN LATE 1988 ITS MEMBERSHIP IS VARIED BIPARTISAN AND ESPECIALLY SENSITIVE TO STATE CONCERNS TWO GOVERNORS TWO LEGISLATORS TWO STATE SCHOOL SUPERINTENDENTS AND AN ARRAY OF TEACHERS LOCAL SCHOOL OFFICIALS TESTING EXPERTS BUSINESS LEADERS AND PUBLIC REPRESENTATIVES THEY'RE APPOINTED BY THE SECRETARY OF EDUCATION FROM CANDIDATES PROPOSED BY THE BOARD ITSELF SERVED BY A SMALL EXPERT STAFF THIS IS A BOARD RARE IN WASHINGTON THAT MAKES DECISIONS BUREAUCRATS MUST HEED AND IS NOT OBLIGED TO TRIM ITS SAILS TO EVERY POLITICAL BREEZE IT HAS PROVED TO BE BOTH TOUGH AND IMPARTIAL WHEN FOR INSTANCE AN ELECTIONMINDED BUSH ADMINISTRATION PRESSED FOR PREMATURE RELEASE OF SOME NAEP DATA THE BOARD SLAPPED THE WHITE HOUSE'S HAND SUCH INDEPENDENCE OF COURSE IS PART OF THE REASON THAT SEVERAL HOUSE STAFFERS AND THEIR EMPLOYERS SET ABOUT TO KILL THE BOARD QUIETLY CONNIVING WITH THE SENIOR CAREERISTS WHO WOULD CONTROL NAEP IF THERE WERE NO BOARD THEY DRAFTED A MEASURE TO TERMINATE THIS SOMETIMESFEISTY PANEL ERASING THE BOARD IS THE SUREST WAY TO REPEAL ITS MOST IMPORTANT ACTION ONE THAT NEVER SAT WELL WITH OLDSTYLE LIBERALS PARTS OF THE SCHOOL ESTABLISHMENT AND ANTITESTING ADVOCACY GROUPS THE DECISION TO ORGANIZE NAEP AROUND CLEAR STANDARDS OF WHAT YOUNG AMERICANS SHOULD KNOW AND BE ABLE TO DO AMID THE MANY TESTS ON THE MARKET ONLY NAEP WHEN REPORTED ACCORDING TO SUCH STANDARDS PERMITS COMPARISONS OF PERFORMANCE AMONG STATES AND TRACKS CHANGES HERE ARE TWO EXAMPLES FROM THE 1992 ASSESSMENT MATH AFTER AN ELABORATE CONSENSUS PROCESS INVOLVING HUNDREDS OF EDUCATORS AND LAYMEN THE BOARD CONCLUDED THAT EIGHTHGRADERS PROFICIENT IN MATH SHOULD APPLY MATHEMATICAL CONCEPTS AND PROCEDURES CONSISTENTLY TO COMPLEX PROBLEMS UNDERSTAND THE CONNECTIONS BETWEEN FRACTIONS PERCENTS DECIMALS AND OTHER MATHEMATICAL TOPICS SUCH AS ALGEBRA AND FUNCTIONS HAVE A THOROUGH UNDERSTANDING OF BASIC LEVEL ARITHMETIC OPERATIONS MAKE INFERENCES FROM DATA AND GRAPHS AND APPLY PROPERTIES OF INFORMAL GEOMETRY HOW MANY EIGHTHGRADERS IN PUBLIC SCHOOL ACTUALLY REACHED THAT LEVEL IN 1992 THE ANSWER WAS 25 FOR THE NATION AS A WHOLE COMPARED WITH 20 TWO YEARS EARLIER IN MINNESOTA AND IOWA PROFICIENCY RATES REACHED 37 WHILE IN GEORGIA AND HAWAII THEY WERE ONLY 16 AND SO FORTH READING AFTER A SIMILAR CONSULTATIVE PROCESS THE BOARD DETERMINED THAT PROFICIENT FOURTHGRADE READERS SHOULD DEMONSTRATE AN OVERALL UNDERSTANDING OF THE TEXT BY MAKING INFERENCES DRAWING REASONABLE CONCLUSIONS AND RECOGNIZING RELATIONSHIPS SUCH AS CAUSE AND EFFECT NATIONWIDE 25 OF FOURTHGRADERS REACHED THAT LEVEL IN 1992 INCLUDING 7 OF BLACK YOUNGSTERS 13 OF HISPANICS 21 OF ASIANS AND 31 OF WHITES PRIVATE SCHOOL PUPILS DID SOMEWHAT BETTER THAN PUBLIC AND GIRLS OUTSCORED BOYS EVEN IN ADVANTAGED SUBURBAN SCHOOLS HOWEVER FEWER THAN HALF THE STUDENTS MET THIS STANDARD NOW THE LEGISLATIVE CYCLE PRESENTS A CHANCE TO SHOOT THE MESSENGER NEVER MIND THAT FOR THE REST OF THE DECADE AT LEAST WE WILL HAVE NO OTHER PRACTICAL WAY TO MONITOR PROGRESS TOWARD THE AMBITIOUS TARGETS SET BY THE PRESIDENT AND GOVERNORS NEVER MIND THAT THERE'S NO OTHER WAY TO FULFILL MR CLINTON'S STATE OF THE UNION CHALLENGE TO MEASURE EVERY SCHOOL BY ONE HIGH STANDARD ARE OUR CHILDREN LEARNING WHAT THEY NEED TO KNOW TO COMPETE AND WIN IN THE GLOBAL ECONOMY CAN A FEW VETERAN HOUSE STAFFERS TERRITORIAL CIVIL SERVANTS PERSNICKETY ACADEMICS AND ANTITESTING ADVOCATES RETURN NAEP TO ITS DIM NONJUDGMENTAL BACKWATER THERE TO BE RUN BY TIMESERVERS AND STATISTICIANS JERKED AROUND BY CONGRESS VULNERABLE TO INTERESTGROUP PRESSURES AND SUSCEPTIBLE TO POLICY DIRECTION BY WHOEVER HAPPENS TO BE EDUCATION SECRETARY INCUMBENT DICK RILEY HIMSELF A FORMER BOARD MEMBER VALUES TODAY'S NAEP AND ITS STANDARDS BUT POLITICS WILL INEVITABLY TEMPT OTHERS TO SHADE THE CONTENT TIMING OR EMPHASIS OF TEST RESULTS TRYING TO FORESTALL THAT FATE THE NATIONAL GOVERNORS ASSOCIATION ADOPTED A UNANIMOUS RESOLUTION LAST WEEK CALLING FOR RETENTION OF THE BOARD AND ITS STANDARDS REP MIKE CASTLE R DEL ANOTHER FORMER BOARD MEMBER HAS MOUNTED A SPIRITED DEFENSE THE CLINTON ADMINISTRATION'S OWN NAEP BILL IS SOLID AND THE SENATE MAY PAY IT GREATER HEED THIS SPRING HENCE THE FINAL OUTCOME WON'T BE CLEAR FOR A WHILE BUT IF THOSE WHO DISLIKE NAEP'S MESSAGE AND THE MESSENGER'S AUTONOMY PREVAIL A SENSITIVE NATIONAL TESTING VENTURE WILL BECOME JUST ANOTHER FEDERAL PROGRAM AND WE'LL KNOW LESS ABOUT THE PERFORMANCE OF OUR CHILDREN AND OUR SCHOOLS TOMORROW THAN WE DO TODAY MR FINN A VANDERBILT PROFESSOR AND FORMER ASSISTANT SECRETARY OF EDUCATION CHAIRED THE NATIONAL ASSESSMENT GOVERNING BOARD FROM 1988 TO 1990 9402080031 940208 BUSINESS BRIEF QUEBECOR PRINTING INC GROUPE JEAN DIDIER STAKE TOTALING 49 TO BE ACQUIRED QUEBECOR PRINTING INC SAID IT SIGNED A LETTER OF INTENT TO BUY A 49 STAKE IN GROUPE JEAN DIDIER OF FRANCE FOR 165 MILLION FRENCH FRANCS 276 MILLION QUEBECOR PRINTING WOULD INJECT CAPITAL IN THE FRENCH PRINTING COMPANY AND BUY SHARES FROM ITS FOUNDER AND CHAIRMAN JEAN DIDIER THE MONTREAL COMMERCIALPRINTING COMPANY WOULD ALSO HAVE THE OPTION OF RAISING ITS STAKE EVENTUALLY IN GROUPE JEAN DIDIER TO 80 TERMS OF THE OPTION WEREN'T DISCLOSED THE TRANSACTION IS SCHEDULED FOR COMPLETION BY JUNE 30 SUBJECT TO DUE DILIGENCE AND APPROVAL BY QUEBECOR PRINTING'S BOARD GROUPE JEAN DIDIER HAS MORE THAN 2 BILLION FRANCS IN ANNUAL REVENUE AND MORE THAN 1700 EMPLOYEES THE INVESTMENT WOULD BE THE SECOND IN EUROPE FOR QUEBECOR PRINTING WHICH LAST YEAR ACQUIRED A MAJORITY STAKE IN ANOTHER FRENCH PRINTER 9402080030 940208 BUSINESS BRIEF ALLEGHENY POWER SYSTEM INC CLEAN AIR ACT COMPLIANCE TO COST LESS THAN ESTIMATE ALLEGHENY POWER SYSTEM INC NEW YORK SAID COMPLIANCE WITH THE CLEAN AIR ACT OF 1990 WILL COST IT 669 MILLION DOWN FROM A 1991 ESTIMATE OF 806 MILLION THE UTILITY HOLDING COMPANY SAID ESTIMATED COST FOR SCRUBBERS ON THREE OF ITS POWERPLANT UNITS HAS FALLEN TO 555 MILLION FROM 726 MILLION IN 1991 ALLEGHENY SAID REGULATORS IN MARYLAND PENNSYLVANIA VIRGINIA AND WEST VIRGINIA ALLOWED THE COMPANY TO INCLUDE CERTAIN CONSTRUCTION COSTS IN ITS RATES DURING CONSTRUCTION OTHER SAVINGS CAME FROM FAVORABLE CONSTRUCTION CONTRACTS AND PLANNING THE COMPANY SAID ALLEGHENY'S PRINCIPAL OPERATING UNITS ARE MONONGAHELA POWER CO POTOMAC EDISON CO AND WEST PENN POWER CO 9402080029 940208 THE CLINTON BUDGET FOR 30 PICK UP A BUDGET BY SIMPLY SLIPPING A DISK WASHINGTON THIS BEING THE AGE OF THE INFORMATION SUPERHIGHWAY THE CLINTON ADMINISTRATION SAID IT IS MAKING COPIES OF THE NEW BUDGET AVAILABLE BY COMPUTER MODEM AND ON CDROM FOR THE FIRST TIME THE CDROM VERSION WITH ACCOMPANYING COMPUTER SOFTWARE INCLUDES EXACT REPLICAS OF THE DOCUMENTS TRANSMITTED TO CONGRESS IT IS AVAILABLE FOR 30 FROM THE COMMERCE DEPARTMENT THE LINEBYLINE APPENDIX WON'T BE AVAILABLE ON CDROM UNTIL LATER THIS MONTH COPIES OF THE CLINTON BUDGET ARE ALSO AVAILABLE FREE FROM THE COMMERCE DEPARTMENT'S ELECTRONIC BULLETIN BOARD AND ON THE INTERNET OLDFASHIONED PAPER COPIES ARE AVAILABLE FROM GOVERNMENT PRINTING OFFICE IN WASHINGTON OR ITS BOOKSTORES AROUND THE COUNTRY THE BASIC BUDGET IS 19 THE APPENDIX 44 A SEPARATE VOLUME OF ANALYSES 21 AND A BOOK OF HISTORICAL TABLES 15 9402080028 940208 ACT ONE SCENE ONE CAST LEAVES THEATER FILES FOR UNEMPLOYMENT BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE CURTAIN RISES THE PORTLY FIGURE OF ROBERT MAXWELL EMERGES FROM A DIMLIT NETHERWORLD EYEBROWS ARCHED EYES GLEAMING THE MUSIC BUILDS I AM THE PIRATE KING TA DA TA DA THUNDERS CAPTAIN BOB TO A TUNE FROM THE PIRATES OF PENZANCE BUT WAIT THE SHOW MUST NOT GO ON SO RULED A HIGH COURT JUDGE HERE WHO BANNED MAXWELL THE MUSICAL FOUR DAYS BEFORE THE PLAY WAS SET TO OPEN FOR PREVIEWS THE SHOW ABOUT THE LATE PUBLISHING TYCOON WAS CREATED BY FORMER MAXWELL AIDE EVAN STEADMAN AND ADVANCE PUBLICITY PROMISED THAT MAXWELL THE MUSICAL WOULD MAKE YOU LAUGH SING AND BE ANGRY BUT AFTER READING AN ADVANCE COPY MR MAXWELL'S SONS KEVIN AND IAN DIDN'T LAUGH AND THEY CERTAINLY DIDN'T SING THEY GOT ANGRY A PLAY ABOUT THEIR FATHER'S ESCAPADES WASN'T THE THING THEY WANTED BEFORE THEY GO ON TRIAL FOR THEIR ALLEGED ROLE IN CONCEALING THEIR FATHER'S SEAMIER BUSINESS SCHEMES A JUDGE AGREEING THAT THE PLAY MIGHT CREATE A SUBSTANTIAL RISK OF SERIOUS PREJUDICE ISSUED A TEMPORARY INJUNCTION I SHAN'T APPEAL SAYS MR STEADMAN KEEPING A STIFF UPPER LIP DESPITE THE FACT THAT HE SPENT SEVERAL HUNDRED THOUSAND POUNDS ON THE PRODUCTION THE BAN LASTS ONLY UNTIL THE TRIAL ENDS BUT SINCE THE COURT HASN'T SET A DATE YET FOR THE TRIAL IT IS HARD TO SAY WHEN THE PLAY WILL GO ON MR STEADMAN SAYS THAT MEANS LONDON AUDIENCES MIGHT HAVE TO WAIT A LONG TIME TO SEE ACTOR JOHN SAVIDENT CAVORTING ON STAGE IN A PADDED BAGGY SUIT AS HIS CHARACTER BUYS STAKES IN VARIOUS ENGLISH FOOTBALL CLUBS AND A CHORUS SINGS HE'S THE VERY MODEL OF A MODERN FOOTBALL MILLIONAIRE THE SHOW WOULD HAVE OPENED WITH MR MAXWELL EMERGING FROM THE NEXT WORLD TO RECOUNT HIS LIFE STORY FOR A GATHERING OF BUSINESS ASSOCIATES LAWYERS POLITICIANS ENEMIES AND FRIENDS BUT NOT HIS SONS MR STEADMAN SAYS THE PLAY DOESN'T EVEN MENTION THEM SOME 14 SONGS LATER IT ENDS WITH MR MAXWELL'S 1991 DEATH SOMETHING THAT HAS REMAINED A MYSTERY SINCE HIS NUDE BODY WAS FOUND FLOATING IN THE SEA OFF THE CANARY ISLANDS LAST NIGHT WORKERS TORE DOWN ADS FOR THE PLAY OUTSIDE A THEATER NEAR PICCADILLY CIRCUS AT THE BOX OFFICE PHONES RANG CONSTANTLY AS A CLERK INFORMED CALLERS SALES FOR THE 11WEEK RUN HAD BEEN WITHDRAWN TICKET HOLDERS WILL GET REFUNDS 9402080027 940208 UNITED AIRLINES' TRAFFIC ROSE CHICAGO UNITED AIRLINES A UNIT OF UAL CORP SAID JANUARY TRAFFIC ROSE 16 TO 758 BILLION REVENUE PASSENGER MILES FROM 746 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE REPRESENTS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER'S AVAILABLE SEAT MILES ROSE 11 TO 1201 BILLION FROM 1189 BILLION 9402080026 940208 THE CLINTON BUDGET PLAN SEES ECONOMY GROWING 3 IN 1994 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NEW CLINTON BUDGET LOOKS FOR THE ECONOMY TO GROW 3 BETWEEN THE FOURTH QUARTER OF 1993 AND THE FINAL PERIOD OF THIS YEAR AND FOR SHORTTERM INTEREST RATES TO REMAIN BELOW 45 FOR THE REST OF THE DECADE THE FORECAST FOR ECONOMIC GROWTH IS ABOUT IN LINE WITH THE CONSENSUS AMONG TOP ECONOMISTS IN THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER HOWEVER IT IS A BIT ROSIER THAN OTHER FORECASTS ON INTEREST RATES THE ADMINISTRATION FOR INSTANCE SEES THE RATE ON 10YEAR TREASURY SECURITIES REMAINING BELOW 6 THROUGH 1999 THE CONGRESSIONAL BUDGET OFFICE AND MANY PRIVATE FORECASTERS EXPECT IT TO RISE ABOVE THAT POINT BY NEXT YEAR THE NEW BUDGET ESTIMATES THAT THE GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US WILL GROW 27 IN 1995 AND 1996 FOURTH QUARTER OVER FOURTH QUARTER GROWTH FOR THE CALENDAR YEAR WHICH MOST ANALYSTS USE IN THEIR FORECASTS THE CLINTON ADMINISTRATION EXPECTS GROWTH OF 31 THIS YEAR 28 IN 1995 AND 27 IN 1996 SOME ECONOMISTS THOUGH THINK THAT GROWTH IN THE COMING YEARS COULD BE A BIT BETTER THAN PROJECTED ESPECIALLY GIVEN THE ROBUST 59 GROWTH RATE IN THE LAST QUARTER OF 1993 THE WEFA GROUP IN SUBURBAN PHILADELPHIA PUTS GROWTH AT ROUGHLY 02 PERCENTAGE POINT HIGHER THAN THE WHITE HOUSE FOR EACH OF THOSE YEARS MICKEY LEVY CHIEF ECONOMIST OF NATIONSBANK ESTIMATES GROWTH MAY BE AS HIGH AS 35 THIS YEAR WE'RE PROBABLY GOING TO SEE A LITTLE MORE GROWTH THAN THE ADMINISTRATION'S FORECAST SAID JAMES GLASSMAN SENIOR ECONOMIST FOR CHEMICAL SECURITIES INC IN NEW YORK IT'S HARD TO THINK WHAT COULD BE HOLDING US BACK IN RECENT MONTHS MANUFACTURING HAS SHOWN NEW SIGNS OF LIFE AND THE HOUSING SECTOR WHICH AT FIRST SEEMED IMMUNE TO LOW INTEREST RATES HAS KICKED IN AS WELL ANALYSTS SAY THE DEFENSE SECTOR AND TRADE WITH EUROPE AND JAPAN WILL PROBABLY NOT BE AS MUCH OF A DRAG ON THE ECONOMY AS THEY HAVE BEEN IN THE RECENT PAST THE WHITE HOUSE IS OPTIMISTIC THAT SHORTTERM RATES WILL REMAIN VERY LOW NOT EXCEEDING 4 OVER THE NEXT TWO YEARS THE BLUE CHIP FORECAST IS IN LINE WITH THAT VIEW AS WELL THE CBO ON THE OTHER HAND FORECAST THE THREEMONTH TREASURY BILL RATE WILL MOVE TO 43 IN 1995 AND 46 IN 1996 FROM ROUGHLY 3 LAST YEAR THE WHITE HOUSE SEES HIGHER INFLATION DURING THIS PERIOD THAN DOES THE CBO HIGHER INTEREST RATES ARE ASSOCIATED WITH HIGHER INFLATION IN PARTICULAR THE FEDERAL RESERVE'S TIGHTENING OF SHORTTERM RATES FRIDAY IT NUDGED THE FEDERAL FUNDS RATE TO 325 LEADS MANY ECONOMISTS TO BELIEVE THAT INTEREST RATES ARE BOUND TO HEAD UP FURTHER THE FED WILL CONTINUE TO BE AGGRESSIVE IF THERE ARE ANY SIGNS OF INFLATION SAID KURT KARL HEAD OF MACROECONOMIC FORECASTING AT THE WEFA GROUP 9402080024 940208 JAPAN'S LEADERS REACH ACCORD TO CUT TAXES ACTION MAY CLEAR THE PATH FOR APPROVAL OF PACKAGE TO STIMULATE ECONOMY BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AFTER A WEEKLONG BATTLE THE PARTIES IN JAPAN'S RULING COALITION GOVERNMENT REACHED AGREEMENT ON HOW TO FINANCE A LONGAWAITED 56 BILLION TAX CUT THE GOVERNMENT WILL REDUCE INCOME AND OTHER TAXES BY SIX TRILLION YEN FOR THE YEAR BEGINNING APRIL 1 A GOVERNMENT SPOKESMAN SAID COALITION LEADERS PUT OFF A DECISION ON THORNY ISSUES SUCH AS WHETHER TO EXTEND THE TAX CUT AND HOW TO FINANCE IT IN ADDITION TO THE TAX REDUCTION THE SPOKESMAN SAID THE POLITICIANS WILL TRY TO PASS OTHER TAX BILLS THIS YEAR POSSIBLY INCLUDING A NEW TAX FISCAL CONSERVATIVES HAVE DEMANDED NEW TAXES IN ORDER TO PAY FOR ANY TAX DECREASE ECONOMISTS FRET THAT THE COMPROMISE DECISION TO OPT FOR A TEMPORARY TAX CUT RATHER THAN A PERMANENT ONE MAY ROB THE REDUCTION OF SOME OF ITS IMPACT BY DISCOURAGING CONSUMERS FROM SPENDING THE MONEY IF THE CASH BACK IS JUST A WINDFALL FOR ONE YEAR IT'S HARD TO BELIEVE IT WILL INFLATE CONSUMPTION SAID KOZO KOIDE ECONOMIST AT INDUSTRIAL BANK OF JAPAN LTD THE AGREEMENT COULD ALLOW JAPAN'S GOVERNMENT TO DELIVER THE REST OF ITS PLANNED ECONOMICSTIMULUS PACKAGE IN ADDITION TO AN INCOMETAX REDUCTION OF SIX TRILLION YEN THE PACKAGE IS EXPECTED TO CONTAIN ADDITIONAL SPENDING AND INVESTMENT VALUED AT NINE TRILLION YEN IT ALSO MAY INCLUDE MEASURES TO AID THE NATION'S TROUBLED BANKS DISAGREEMENT OVER HOW TO PAY FOR THE MEASURES HAS PARALYZED POLICYMAKERS FOR MONTHS THE COMPROMISE PLAN APPROVED BY THE COALITION BOILS DOWN TO AGREEING NOW TO LOWER THE TAX BURDEN AND PUTTING OFF UNTIL LATER THIS YEAR A DECISION ON HOW TO OFFSET THE REVENUE LOSS TOKYO STOCKS SOARED ON EARLY REPORTS OF THE COMPROMISE THE NIKKEI STOCK AVERAGE ENDED THE MORNING SESSION AT 2051635 UP 50195 POINTS OR 25 THE MARKET WAS ACTIVE FROM THE OPENING TRADERS SAID WITH FOREIGN INVESTORS DOMINATING THE BUYING THE TAXPOLICY IMBROGLIO HAS BATTERED PRIME MINISTER HOSOKAWA'S POPULARITY POLITICIANS AND ANALYSTS CREDITED US PRESSURE WITH BREAKING THE POLICY STALEMATE TOKYO IS DESPERATE TO DELIVER A STIMULATIVE ECONOMIC PLAN TO PRESIDENT CLINTON WHEN HE AND THE PRIME MINISTER MEET ON FRIDAY IN WASHINGTON THE US HAS BEEN PRESSING JAPAN TO STIMULATE ITS ECONOMY AND THUS DEMAND FOR US IMPORTS ECONOMISTS ESTIMATE THAT THE EXPECTED PACKAGE VALUED AT A TOTAL OF 15 TRILLION YEN COULD ADD AS MUCH AS TWO PERCENTAGE POINTS TO JAPAN'S GROSS DOMESTIC PRODUCT ONCE THE MONEY HITS THE PIPELINE THE JAPAN CENTER FOR ECONOMIC RESEARCH ESTIMATES THAT THE ECONOMY CONTRACTED AT A STUNNING ANNUAL RATE OF 63 IN THE QUARTER ENDED DEC 31 THE PACKAGE WOULD HELP BUT IT WOULDN'T CURE THE ECONOMY'S ILLS MOST ECONOMISTS AGREE MOST ANALYSTS EXPECT THE ECONOMY TO GROW BY LESS THAN ONE PERCENT IN 1994 EVEN IF THE GOVERNMENT CUTS TAXES AND INCREASES SPENDING JAPAN'S POWERFUL FINANCE MINISTRY WHICH STAUNCHLY OPPOSES DEFICIT SPENDING FOUGHT TENACIOUSLY FOR ASSURANCE THAT ANY TAXCUT LEGISLATION INCLUDE A GUARANTEE OF HIGHER CONSUMPTION TAXES LATER MEMBERS OF THE RULING COALITION ESPECIALLY THE SOCIALISTS RESISTED THE IDEA OF COMMITTING TO A TAX INCREASE WHILE THE NATION IS STILL IN RECESSION MR HOSOKAWA CAME DOWN ON THE SIDE OF THE FINANCE MINISTRY HE PROPOSED LAST WEEK TO MORE THAN DOUBLE THE NATION'S SALES TAX IN 1997 TO OFFSET THE INCOMETAX CUT PEOPLE ACCEPT THE NEED FOR HIGHER CONSUMPTION TAXES IN THE FUTURE BUT STRONGLY OPPOSE THE NOTION OF LEGISLATING AN INCREASE NOW WHILE JAPAN IS IN RECESSION MR HOSOKAWA HAD TO WITHDRAW THE IDEA AFTER SOCIALIST MEMBERS OF HIS COALITION THREATENED TO LEAVE THE GOVERNMENT TUESDAY MORNING'S COMPROMISE SPLITS THE DIFFERENCE BETWEEN THE SOCIALIST AND FINANCE MINISTRY POSITIONS THE TAX BATTLE HAS BATTERED MR HOSOKAWA'S ENORMOUS POPULARITY A POLL PUBLISHED TUESDAY MORNING BY THE NIHON KEIZAI SHIMBUN A BUSINESS DAILY SHOWED THE PRIME MINISTER'S PUBLICSUPPORT RATE HAS PLUMMETED TO 53 FROM 70 IN DECEMBER THE POLLSTERS ATTRIBUTED THE PLUNGE TO THE TAX DEBATE 9402080023 940208 INTERNATIONAL O'REILLY GROUP FACES STRUGGLE OVER NEWSPAPER BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HJ HEINZ CO CHAIRMAN TONY O'REILLY IS FACING A TOUGH OBSTACLE IN HIS BID TO EXTEND HIS EUROPEAN NEWSPAPER INTERESTS TO LONDON MR O'REILLY'S INDEPENDENT NEWSPAPERS PLC A DUBLIN PUBLISHING GROUP ON FRIDAY BOUGHT A 2499 STAKE IN NEWSPAPER PUBLISHING OWNER OF THE LONDON PAPERS THE INDEPENDENT AND THE INDEPENDENT ON SUNDAY FOR P184 MILLION 271 MILLION OR 350 PENCE A SHARE ANALYSTS SAW THE MOVE AS ONE THWARTING A RIVAL BID FROM A CONSORTIUM LED BY MIRROR GROUP NEWSPAPERS VALUED AT 551 MILLION OR 2616 PENCE A SHARE FOR THE 529 THAT IT DOESN'T ALREADY OWN HOWEVER A SPOKESMAN FOR MIRROR GROUP SAID THE NEWSPAPER CONCERN PLANS TO MAKE ITS OFFER DIRECTLY TO SHAREHOLDERS IN A MAILING OVER THE NEXT TWO WEEKS THE MIRROR GROUP CONSORTIUM ALREADY OWNS A 471 STAKE IN NEWSPAPER PUBLISHING IF THE MIRROR GROUP OFFER SUCCEEDS IT COULD LEAVE MR O'REILLY WITH AN EXPENSIVE STAKE IN A COMPANY THAT HE CANNOT CONTROLOR FORCE HIM TO MAKE A BID FOR THE WHOLE COMPANY MR O'REILLY SEEMS TO HAVE THE UPPER HAND HOWEVER NEWSPAPER PUBLISHING'S BOARD ALREADY SIGNALED THAT IT'S WILLING TO WORK WITH HIM THE BOARD IS EXPECTED TO MEET WITH MR O'REILLY THIS WEEK TO DISCUSS PLACING TWO OF HIS REPRESENTATIVES ON THE BOARD NEWSPAPER PUBLISHING REITERATED YESTERDAY THAT MIRROR GROUP'S OFFER OF 261 PENCE A SHARE IS NOT SATISFACTORY IN THE INDEPENDENT'S NEWSROOM MR REILLY WAS HAILED AS A WHITE KNIGHT THE MIRROR CONSORTIUM WHOSE PARTNERS INCLUDE THE ITALIAN AND SPANISH NEWSPAPERS LA REPUBBLICA AND EL PAIS AS WELL AS THE INDEPENDENT'S EDITOR IN CHIEF HAD INDICATED IT WOULD CUT COSTS AND STAFF AS MANY AS 250 INDEPENDENT JOBS WERE SAID TO BE ON THE LINE MR O'REILLY WHO PURCHASED HIS STAKE FROM INSTITUTIONAL INVESTORS DECLINED TO COMMENT A MIRROR GROUP SPOKESMAN SAID THAT THE CONSORTIUM'S OFFER OF 2616 PENCE A SHARE STILL STANDS WE BELIEVE 350 A SHARE IS A PRETTY RIPE PRICE THE 261 A SHARE WE'VE VALUED IS REALISTIC THE MIRROR GROUP SPOKESMAN SAID 9402080022 940208 CITIZENS BANKSHARES ACQUISITION SALINEVILLE OHIO CITIZENS BANKSHARES INC SAID IT COMPLETED ITS ACQUISITION OF FIRESTONE BANK OF LISBON OHIO IN A STOCK SWAP VALUED AT ABOUT 76 MILLION CITIZENS SAID IT ISSUED ABOUT 237000 SHARES TO ACQUIRE FIRESTONE CITIZENS CLOSED YESTERDAY AT 32 UNCHANGED IN NASDAQ STOCK MARKET TRADING CITIZENS HAS ABOUT 645 MILLION IN ASSETS 9402080021 940208 WHO'S NEWS AUTOMOBILI LAMBORGHINI SPA AUTOMOBILI LAMBORGHINI SPA JACKSONVILLE FLA ROBERT BRANER 55 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF LAMBORGHINI USA THE AUTO MAKER'S US SALES AND MARKETING UNIT HE SUCCEEDS JOSEPH S HANNAN JR WHO IS RESIGNING TO JOIN CHRYSLER CORP 9402080020 940208 CREDIT MARKETS PRICES OF TREASURYS SLIDE ON CONTINUED WORRIES ABOUT RISING INTEREST RATES AND NEW OFFERINGS BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK TRADERS SENT PRICES OF MANY TREASURY NOTES AND BONDS LOWER YESTERDAY AS THEY CONTINUED TO WORRY ABOUT RISING SHORTTERM INTEREST RATES AND AN UPCOMING FLOOD OF NEW ISSUANCES THE LOSSES BUILT ON THOSE FROM LATE LAST WEEK WHEN THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES SOONER THAN MANY HAD EXPECTED THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 98 3/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 639 FROM 635 ON FRIDAY THE YIELDS OF SHORTTERM SECURITIES ROSE SLIGHTLY THE BONDEQUIVALENT YIELD OF THE THREEMONTH BILL FOR EXAMPLE ROSE TO 323 FROM 322 ON FRIDAY MEANWHILE THE PRICES OF VENEZUELAN BONDS WHICH ARE POPULAR WITH AMERICAN INVESTORS INTERESTED IN DEVELOPINGNATION MARKETS DROPPED SHARPLY IN REACTION TO NEWS THAT A MAJOR RATING AGENCY MIGHT SOON DOWNGRADE THE COUNTRY'S FOREIGNCURRENCY DEBT THE BOND MARKET BEGAN THE DAY ON A DECIDEDLY SOUR TONE REGISTERING SOLID LOSSES IN EARLY TRADING THERE WAS SOME SERIOUS RETAIL SELLING RIGHT OUT OF THE CHUTE SAID DANIEL CALLAHAN MANAGER OF GOVERNMENT SECURITIES TRADING AT PAINEWEBBER BEHIND THE BEARISH TILT TO THE MARKET WAS SPILLOVER FROM THE FED'S DECISION FRIDAY TO NUDGE SHORTTERM INTEREST RATES SLIGHTLY HIGHER MR CALLAHAN SAID THE FED TIGHTENING HAS CAUSED SOME INVESTORS TO RECONSIDER THEIR ATTITUDE TOWARD THE BOND MARKET FOR THE LONGEST TIME THE MARKET WAS ABLE TO SHRUG OFF BAD NEWS ON THE FEELING THE FED WASN'T GOING TO RAISE RATES MR CALLAHAN SAID NOW BAD NEWS COULD BRING A TIGHTENING IN ADDITION TO THE RIPPLES SPREADING FROM THE FED TIGHTENING TRADERS HAVE TO CONFRONT FRESH PROBLEMS IN PARTICULAR TRADERS ARE CONCERNED ABOUT THE RECEPTION THAT THIS WEEK'S 40 BILLION QUARTERLY REFUNDING AUCTIONS WILL RECEIVE AT THE SAME TIME ECONOMISTS ARE PREDICTING THAT FRIDAY'S JANUARY PRODUCERPRICE INDEX REPORT COULD BE TROUBLE FOR THE MARKET THE PRICE INDEX IS A POPULAR MEASURE OF INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE TREASURY DEPARTMENT WILL BE SELLING 17 BILLION OF THREEYEAR NOTES TODAY 12 BILLION OF 10YEAR NOTES TOMORROW AND 11 BILLION OF 30YEAR BONDS THURSDAY THEN ON FRIDAY THE LABOR DEPARTMENT WILL RELEASE THE JANUARY PRODUCERPRICE INDEX FORECASTS CENTER ON AN INCREASE OF ABOUT 04 FOR THE OVERALL PPI AND A GAIN OF ABOUT 03 EXCLUDING FOOD AND ENERGY THE SUPPLY IS ON THE FOREFRONT FOR THE MARKET SAID MR CALLAHAN OF PAINEWEBBER THE MARKET HAS ALSO GOT ON ITS MIND THE POSSIBILITY OF A DISAPPOINTING PPI NUMBER HE SAID THE INFLATION NUMBERS ARE AN ESPECIALLY BIG PROBLEM FOR THOSE WHO HAVE TO BID ON THE 30YEAR BOND AT THURSDAY'S AUCTION THE RISKS ARE FOR A HIGHER NUMBER AND WHO WANTS TO BUY A 30YEAR BOND IN FRONT OF A POTENTIALLY SCARY PPI NUMBER SAID STEVE WOOD DIRECTOR OF ECONOMIC RESEARCH AT BA SECURITIES SOME DEALERS SAID INVESTORS WERE VIEWING THE FED'S TIGHTENING LAST WEEK AS A POSITIVE FOR LONGER MATURITIES ARGUING THAT THE FED HAD ACTED PROMPTLY TO FIGHT A FLAREUP IN INFLATION EXPECTATIONS BEFORE IT BECAME A PROBLEM BOB MCCORKLE A SALESMAN AT SEATTLE NORTHWEST SECURITIES SAID THE MARKET IS ABLE TO WEATHER THE THREEPART REFUNDING AUCTIONS BUT WITH THE HELP OF SLIGHTLY LOWER PRICES YOU'LL PROBABLY GO THROUGH THE REFUNDING WITH A LITTLE BIT OF A CONCESSION BUT THEN YOU'LL PROBABLY SEE A RALLY AS THE PAPER IS DISTRIBUTED HE SAID BUT THE MARKET STILL MUST GET THROUGH TUESDAY'S THREEYEAR NOTE AUCTION TRADERS REMARKED BECAUSE A FED TIGHTENING HAS A GREATER IMPACT ON SHORTTERM SECURITIES THOSE ISSUES ARE SOMETIMES THE HARDEST TO AUCTION IN A PERIOD OF RISING INTEREST RATES IN WHENISSUED TRADING LATE YESTERDAY THE THREEYEAR NOTE YIELDED 481 THE 10YEAR NOTE TO BE AUCTIONED TOMORROW YIELDED 59 IN WHENISSUED TRADING WHILE THE 30YEAR BOND TO BE SOLD THURSDAY YIELDED 64 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB 10 THE 13WEEK BILLS MATURE MAY 12 1994 AND THE 26WEEK BILLS MATURE AUG 11 1994 VENEZUELA'S BRADY BONDS REACHED THE MAT YESTERDAY AND WERE PINNED UNDER THE WEIGHT OF RISING INTEREST RATES AND NEWS THAT A MAJOR RATING AGENCY MAY SOON DOWNGRADE THE COUNTRY'S FOREIGNCURRENCY DEBT BRADY BONDS ARE ISSUED AS PART OF A DEBTRESTRUCTURING PROGRAM NAMED AFTER FORMER US TREASURY SECRETARY NICHOLAS BRADY MOODY'S INVESTORS SERVICE SAID THAT IT HAD PUT VENEZUELA'S 96 BILLION OF PAR AND DISCOUNT BRADY BONDS AND A CLASS OF FLOATINGRATE BRADY NOTES UNDER REVIEW FOR A POSSIBLE DOWNGRADE PAR BONDS ARE CONVERTED FROM RESTRUCTURED DEBT AT FACE VALUE WHILE DISCOUNTS ARE CONVERTED AT A DISCOUNT TO FACE VALUE MOODY'S CITED THE STEADY DETERIORATION OF VENEZUELA'S ECONOMIC FUNDAMENTALS A WORSENING OF ITS PUBLIC FINANCES THE CRISIS IN THE COUNTRY'S FINANCIAL SECTOR AND THE INCREASING POLITICAL INSTABILITY AND UNCERTAINTY THAT HELPED SEND VENEZUELA DEBT TUMBLING IN HEAVY VOLUME WITH THE PAR BRADY BONDS DROPPING 25 POINTS TO 68125 ANZELMO CHUECOS HEAD OF THE GOVERNMENT'S SUPERINTENDENCY OF FOREIGN INVESTMENT CALLED MOODY'S MOVE UNFAIR HE NOTED THAT THE COUNTRY'S ECONOMY HAS BEEN GREATLY TRANSFORMED RECENTLY AND THAT THE NEW GOVERNMENT OF PRESIDENT RAFAEL CALDERA WOULD CONTINUE THE MOVE TOWARD A COMPETITIVE ECONOMY TRADERS AT SEVERAL MAJOR DEALERS SHRUGGED OFF THE NEWS NOTING THAT VENEZUELAN DEBT HAS BEEN UNDER PRESSURE FOR A WHILE JOSEPH E HYNES A PORTFOLIO MANAGER IN NEW YORK LIFE INSURANCE CO'S EMERGING MARKETS GROUP SAID HE WAS NOT SURPRISED BY THE MOODY'S ANNOUNCEMENT THE MAJOR RATING AGENCIES HAVE ALREADY PUT SEVERAL INTERNATIONAL OIL COMPANIES ON REVIEW FOR POSSIBLE DOWNGRADE HE NOTED GIVEN THAT VENEZUELA GAINS AN OVERWHELMING PORTION OF GOVERNMENT REVENUE FROM NATIONAL OIL COMPANY PETROLEOS DE VENEZUELA IT SHOULDN'T STARTLE ANYONE HE SAID ACCORDING TO BANKERS TRUST ANALYST CARL W ROSS FOR EVERY 1 DECLINE IN THE PRICE OF OIL VENEZUELA LOSES ABOUT 730 MILLION ANNUALLY OR ABOUT 12 OF GROSS DOMESTIC PRODUCT IN EXPORT REVENUE JUST TWO ISSUERS TAPPED THE CORPORATEDEBT MARKET YESTERDAY CINCINNATI GAS & ELECTRIC CO SOLD 220 MILLION OF DEBT IN TWO PARTS AND THE FEDERAL HOME LOAN BANK SYSTEM SOLD 100 MILLION OF FLOATINGRATE NOTES VOLUME OF ISSUANCE ISN'T EXPECTED TO PICK UP MUCH THIS WEEK BECAUSE OF VOLATILITY IN BONDS GENERALLY AND BECAUSE OF THIS WEEK'S SCHEDULED AUCTIONS OF TREASURY SECURITIES TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY QUIET AS PRICES FOLLOWED THOSE OF TREASURYS LOWER SPREADS OR THE MARGIN BETWEEN YIELDS IN THE TWO MARKETS NARROWED BY 001 TO 002 PERCENTAGE POINT ACROSS THE BOARD TRADING IN JUNK BONDS ALSO WAS LIGHT WITH PRICES ENDING DOWN ABOUT 1/4 TO 1/2 POINT THE CHANGE IN THE INTERESTRATE ENVIRONMENT HAS SOME GUESSING AT HOW COMPANIES WILL RESPOND MOST EXPECT SHORTTERM INTEREST RATES TO RISE FURTHER WHILE LONGTERM RATES MAY DROP SLIGHTLY PEOPLE ARE STILL THINKING THAT 30YEAR TREASURYS ARE GOING TO RALLY AFTER THE TREASURY SUPPLY IS OUT OF THE WAY SAID BOB HUGIN HEAD OF TAXABLE FIXED INCOME AT JP MORGAN SECURITIES HOWEVER IF 30YEAR TREASURYS CLIMB TO 65 ONE SYNDICATE OFFICIAL SAID ISSUERS WHO WERE WAITING FOR THE MARKET TO RALLY MIGHT JUMP INTO THE MARKET COMPANIES WHO HAVE TAKEN ADVANTAGE OF LOW SHORTTERM INTEREST RATES BY USING MORE THAN USUAL AMOUNT OF COMMERCIAL PAPER MAY DECIDE TO SELL THREE TO FIVEYEAR DEBT TO PAY DOWN THE COMMERCIAL PAPER ONE SYNDICATE OFFICIAL SAID BUT IN GENERAL SYNDICATE OFFICIALS SAY THAT THE LEVEL OF ISSUANCE IN THE INVESTMENTGRADE MARKET WILL DROP THIS YEAR THROUGH FEB 4 THERE WERE 212 INVESTMENTGRADE DEBT OFFERINGS TOTALING 3679 BILLION DOWN FROM 292 TOTALING 4285 BILLION IN THE COMPARABLE PERIOD OF LAST YEAR ACCORDING TO SECURITIES DATA HOWEVER THE NUMBER OF JUNKBOND DEALS HAS INCREASED SO FAR 41 DEALS TOTALLING 887 BILLION IN PRINCIPAL AMOUNT HAVE BEEN PRICED UP FROM 29 DEALS FOR 748 BILLION IN THE YEARAGO PERIOD MUNICIPAL BONDS CONTINUE TO WEAKEN IN THE AFTERMATH OF THE FEDERAL RESERVE'S TIGHTENING AND THEY FINISHED YESTERDAY'S NERVOUS TRADING AS MUCH AS 3/4 POINT LOWER MUNI SPECIALISTS SAID THE MARKET IS JITTERY BECAUSE CONCERNS ABOUT THE FED'S TIGHTENING ARE COMPOUNDED BY UNCERTAINTIES ABOUT THE TREASURY'S DEBT AUCTIONS IN THE NEXT FEW DAYS AND THE JANUARY PRODUCERPRICE INDEX DATA THAT WILL BE RELEASED FRIDAY HARRIS COUNTY'S TEXAS 500 BONDS DUE 2016 FINISHED 3/4 WEAKER AT 94 3/4 YIELDING 537 LATE FRIDAY THOSE BONDS WERE PRICED TO YIELD 531 IN FUTURES DEALINGS AT THE CHICAGO BOARD OF TRADE THIS SESSION MARCH MUNICIPAL BOND FUTURES SETTLED 8/32 LOWER AT 10219 WHILE MARCH TREASURYBOND FUTURES FINISHED 2/32 WEAKER AT 11426 ISSUES TOTALING MORE THAN 900 MILLION ARE SCHEDULED TO DEBUT TODAY NEGOTIATED OFFERINGS SCHEDULED FOR PRICING INCLUDE THE ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY CALIFORNIA 200 MILLION BONDS AND THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 190 MILLION OF REVENUE BONDS LEHMAN BROTHERS IS THE MANAGING UNDERWRITER FOR THE ORANGE COUNTY ISSUE AND LAZARD FRERES IS THE LEAD UNDERWRITER FOR THE NEW YORK OFFERING BY THE END OF YESTERDAY'S SESSION MOST MORTGAGE SECURITIES WEREN'T ABLE TO ERASE MUCH OF THE NEARLY 1/2 POINT LOSSES MADE IN THE MORNING BUT UNDERWRITERS WERE ABLE TO GET NEW BONDS OUT THE DOOR THEY TOOK ADVANTAGE OF A SLIGHT STEEPENING IN THE TREASURY YIELD CURVE GENERALLY AS THE CURVE STEEPENS THE ARBITRAGE INVOLVED IN CREATING REAL ESTATE INVESTMENT CONDUITS BECOMES MORE PROFITABLE ONE DEAL WAS OFFERED BY UTENDAHL CAPITAL PARTNERS MAKING IT THE FIRST FEDERAL NATIONAL MORTGAGE ASSOCIATION REMIC TO BE LEADMANAGED BY A MINORITY/WOMENOWNED INVESTMENT BANK ACCORDING TO A RELEASE FROM FANNIE MAE THE 250 MILLION OFFERING WAS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES AND CONSISTED OF 25 CLASSES OR TRANCHES REMICS ARE CREATED BY CARVING UP EXISTING MORTGAGE SECURITIES INTO ANY NUMBER OF TRANCHES EACH WITH THEIR OWN INVESTMENT CHARACTERISTICS AND AIMED AT A VARIETY OF INVESTORS FROM THE RISK AVERSE TO THE MORE SPECULATIVE IN NATURE AMONG PRICES OF 65 SECURITIES FOR FEBRUARY DELIVERY GINNIE MAES WERE DOWN 10/32 NEAR THE CLOSE TO TRADE AT 98 25/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE OFF 11/32 AT 98 31/32 AND 98 24/32 RESPECTIVELY 9402080019 940208 HUGOTON ENERGY DISCOVERY WELL WICHITA KAN HUGOTON ENERGY CORP SAID A NEW DISCOVERY WELL IN HASKELL COUNTY KAN FLOWED IN A TEST AT THE RATE OF THREE MILLION CUBIC FEET OF GAS AND AT LEAST 200 BARRELS OF OIL A DAY AT A DEPTH OF 5500 FEET HUGOTON THE OPERATOR OF THE WELL OWNS A 65 INTEREST IN IT THE COMPANY SAID THE WELL IS EXPECTED TO BEGIN PRODUCTION BY MARCH 1 9402080018 940208 PETSTUFF BOARD CLEARS NEW STORES ROSWELL GA PETSTUFF INC SAID ITS BOARD APPROVED THE OPENING OF BETWEEN 25 AND 30 NEW PETFOOD AND SUPPLY SUPERSTORES IN THE CURRENT FISCAL YEAR WITH THE FIRST SCHEDULED TO OPEN IN APRIL THE COMPANY CURRENTLY OPERATES 35 STORES IN 14 METROPOLITAN AREAS 9402080017 940208 ECONOMY UPS TEAMSTERS REACH ACCORD ENDING STRIKE SCATTERED WALKOUT HOBBLED DELIVERIES PARTICULARLY IN NORTHEASTERN STATES BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL UNITED PARCEL SERVICE OF AMERICA INC AND THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS REACHED A SETTLEMENT TO END A SCATTERED WALKOUT THAT HOBBLED DELIVERIES THROUGHOUT THE NATION YESTERDAY ESPECIALLY IN THE NORTHEAST UNDER TERMS OF THE SETTLEMENT REACHED LAST NIGHT UPS HAS AGREED NOT TO PENALIZE THE WORKERS WHO DEFIED A COURT ORDER TO STRIKE AND NOT TO SUE UNION LOCALS FOR DAMAGES UPS SAID HOWEVER THAT IT WOULD STILL CONSIDER SEEKING DAMAGES FROM THE INTERNATIONAL LEADERSHIP BUT UPS GRANTED NO REAL CONCESSIONS ON THE CORE ISSUE OF ITS NEW WEIGHT LIMIT FOR PACKAGES WHICH JUMPED TO 150 POUNDS FROM 70 POUNDS YESTERDAY THE COMPANY SAID IT DIDN'T CHANGE ANY OF ITS SAFETY PRECAUTIONS AND WOULD NOT IN THE FUTURE THE TEAMSTERS STILL CLAIMED VICTORY IN THE STRIKE WHICH SHUT DOWN UPS OPERATIONS THROUGHOUT THE NORTHEAST AND OTHER PARTS OF THE COUNTRY MANY TEAMSTERS FEARING ARREST AND FINANCIAL LIABILITY IGNORED THE SUNDAY NIGHT STRIKE CALL BY THEIR PRESIDENT RON CAREY UPS SAID ROUGHLY 80 OF THE 165000 TEAMSTERS WHO WORK FOR THE COMPANY REPORTED FOR WORK YESTERDAY THE UNION ESTIMATED THAT ABOUT HALF OF THE MEMBERS HONORED THE STRIKE THE FINANCIAL DAMAGE FROM THE STRIKE IS UNCERTAIN AND THE REAL FALLOUT HAS YET TO APPEAR ANALYSTS AND CONSULTANTS SAID THE APPEARANCE OF LABOR STRIFE COULD SPOOK THE LARGE SHIPPERS THAT UPS IS BANKING ON FOR CONTRACTS THIS SCARES US SAID PHILIP SCHAECHER SENIOR VICE PRESIDENT OF OPERATIONS AT LANDS' END INC A LARGE CUSTOMER EXECUTIVES AT FEDERAL EXPRESS CORP AND AIRBORNE FREIGHT CORP SAID THEY WON A SIZABLE NUMBER OF CUSTOMERS FROM UPS YESTERDAY USING THE STRIKE AS A TOOL TO LURE AWAY BUSINESS I'M SURE THEY HAVE WON BUSINESS SAID A UPS SPOKESMAN UPS SAID THE STRIKE SHUT DOWN MOST OF ITS OPERATIONS IN THE NORTHEAST HALTING DELIVERIES OF PACKAGES AND EXPRESS LETTERS FROM BOSTON TO WASHINGTON DC OPERATIONS ALSO WERE JAMMED IN SEATTLE PITTSBURGH ATLANTA CHICAGO AND ORLANDO FLA THE UPS AIR OPERATION WAS LARGELY UNAFFECTED BUSINESSES THROUGHOUT THE COUNTRY WERE AFFECTED BY THE STRIKE AMERICAN TELEPHONE & TELEGRAPH CO'S BASKING RIDGE NJ OPERATIONS CENTER FOR INSTANCE DIDN'T RECEIVE ITS USUAL LOAD OF INTERNAL REPORTS AND COMPANY DELIVERIES LARGE USERS HAD TO REROUTE PACKAGES OR MAKE CONTINGENCY PLANS LANDS' END FOR INSTANCE WHICH SHIPS 75 OF ITS PACKAGES WITH UPS SAID ITS DELIVERIES TO CHICAGO NEW YORK BOSTON AND PITTSBURGH WERE FROZEN THE COMPANY SAID IT MAY PULL SOME OF ITS BUSINESS FROM UPS PERMANENTLY TO KEEP KEEP THE STREAM OF GOODS MOVING UPS MANAGERS DROVE TRUCKS AND DELIVERED PACKAGES THROUGHOUT THE COUNTRY YESTERDAY PRIOR TO THE SETTLEMENT UPS HAD CLAIMED THE WORKERS WERE BREAKING THE LAW AND THREATENED TO HOLD THE LOCAL UNIONS LIABLE FOR DAMAGES ON FRIDAY NIGHT FOLLOWING THREATS OF A STRIKE THE COMPANY WON A TEMPORARY RESTRAINING ORDER BARRING THE TEAMSTERS FROM A WALKOUT THE TEAMSTERS LEADERSHIP HAS TAKEN A HARD LINE ON THE NEW PACKAGEWEIGHT LIMIT THE 150POUND PACKAGES THEY SAY WILL POSE SERIOUS HEALTH RISKS TO WORKERS AND SHOULD HAVE BEEN NEGOTIATED DURING RECENT CONTRACT TALKS UPS DISPUTED THE CLAIMS THE UNION SAID THAT AS PART OF THE SETTLEMENT UPS WILL NEGOTIATE ITS SAFETY MEASURES UPS SAID IT WILL ONLY CLARIFY ITS EXISTING MEASURES TO THE UNION THE TEAMSTERS ALSO SAID NO WORKER WILL BE FORCED TO CARRY A PACKAGE OF MORE THAN 70 POUNDS ALONE ALTHOUGH THAT PROVISION WAS ALREADY IN THE UPS MANUAL SEPARATELY A SENIOR LABOR DEPARTMENT OFFICIAL WHO DECLINED TO BE NAMED SAID THE AGENCY'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION PLANS TO TAKE A LOOK AT UPS'S NEW RULE FORCING WORKERS TO CARRY 150POUND PACKAGES IT'S POTENTIALLY UNSAFE FOR WORKERS TO BE HAULING PACKAGES OF THAT WEIGHT WITHOUT DEVICES SIMILAR TO THOSE USED BY UPS COMPETITORS INCLUDING FEDERAL EXPRESS THE OFFICIAL SAID UPS SAYS ITS MEASURES ARE SAFER THAN THOSE USED BY COMPETITORS LABOR SECRETARY ROBERT REICH HELD PHONE CONVERSATIONS OVER THE WEEKEND AND YESTERDAY WITH MR CAREY AND UPS PRESIDENT KENT NELSON KEVIN G SALWEN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9402080016 940208 INTERNATIONAL BRIEF HANSON PLC BEAZER UNIT'S 100 FLOTATION IS SET TO TAKE PLACE IN MARCH UK INDUSTRIAL HOLDING COMPANY HANSON PLC SAID MONDAY THAT ITS 100 FLOTATION OF ITS BEAZER HOMEBUILDING UNIT WILL OCCUR IN MARCH HANSON SAID VICTOR BENJAMIN DEPUTY CHAIRMAN OF UK GROUPS TESCO PLC AND LEX SERVICE PLC WILL BECOME BEAZER'S CHAIRMAN DENNIS WEBB NOW HEAD OF THE BEAZER UNIT WILL BE CHIEF EXECUTIVE IN DECEMBER HANSON ESTIMATED IT WOULD FLOAT BEAZER SOMETIME IN THE FIRST HALF OF 1994 THE MARKET EXPECTS HANSON TO RECEIVE IN THE NEIGHBORHOOD OF 450 MILLION 663 MILLION FOR BEAZER THE HOME BUILDER HAD 375 MILLION OF OPERATING PROFIT FOR THE YEAR ENDED SEPT 30 1993 THE EARNINGS ARE A SWING FROM A 617 MILLION LOSS IN THE YEAR ENDED JUNE 30 1992 THE COMPANY RECENTLY CHANGED ITS REPORTING YEAR TO END SEPT 30 IN THE JULYSEPTEMBER 1992 QUARTER BEAZER EARNED 75 MILLION 9402080015 940208 INTERNATIONAL CUBA BACKS OFF FROM PROPOSED REFORMS DESPITE WARNINGS OF ECONOMIC CHAOS' BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL CUBA'S CAUTIOUS FLIRTATION WITH ECONOMIC REFORM HAS COOLED DESPITE DIRE WARNINGS FROM INTERNATIONAL EXPERTS THAT THE ISLAND NEEDS FAST ACTION A RECENT REPORT BY INTERNATIONAL MONETARY FUND DIRECTOR JACQUES DE GROOTE SAYS THERE IS LITTLE TIME FOR THE COUNTRY TO MAKE ORDERLY REFORMS TO SPARK A TURNAROUND FOR ITS DEVASTATED ECONOMY THAT REPORT ECHOES A STUDY MADE BY FORMER SPANISH FINANCE MINISTER CARLOS SOLCHAGA WHO IS ADVISING CUBA ON ITS ECONOMIC TRANSITION MR SOLCHAGA CALLS ON HAVANA TO FACE THE ISLAND'S ECONOMIC CHAOS WITH COURAGE AND BOLDNESS THE VIEW IS CONSISTENT FROM THE OUTSIDE THAT CUBA MUST MAKE CHANGES AND MUST MAKE THEM QUICKLY SAYS JORGE DOMINGUEZ A LEADING EXPERT ON CUBA AT THE INTERAMERICAN DIALOGUE A WASHINGTON THINK TANK BUT THE CUBAN GOVERNMENT IS PULLING BACK FROM ECONOMIC REFORMS REFORMS WHICH WERE TIMID TO BEGIN WITH HESITATION OVER PROPOSED REFORMS IS EVIDENCE THAT FIDEL CASTRO AND OTHERS IN THE COUNTRY'S HIERARCHY FEAR THAT CHANGES THEY HAVE BEEN PUSHED TO ADOPT WILL SOONER OR LATER CAUSE THEM TO LOSE CONTROL OVER CUBAN SOCIETY THE PEOPLE WHO ARE FIDEL'S TRUE BELIEVERS ARE THE ONES WHO HAVE THE MOST TO LOSE FROM THE REFORMS SAYS ENRIQUE BALOYRA A CUBA EXPERT AT THE UNIVERSITY OF MIAMI IF HE DOES WHAT THE PEOPLE WITH THE ECONOMIC SOLUTIONS WANT HIM TO DO HE HAS TO ACT AGAINST HIS MOST LOYAL FOLLOWERS MR DE GROOTE AND HIS ASSISTANT FRANK MOSS MADE TWO PRIVATE WORKING VISITS TO HAVANA LAST YEAR AT THE INVITATION OF THE ISLAND'S CENTRAL BANK IN CUBA MR DE GROOTE AN IMF DIRECTOR WHO OVERSEES THE FUND'S MARKETTRANSITION PROGRAM FOR FIVE COUNTRIES INCLUDING HUNGARY AND THE CZECH REPUBLIC ORGANIZED A WEEKLONG SERIES OF SEMINARS ON THE TRANSITION FROM CENTRAL PLANNING TO A MARKET ECONOMY HIS REPORT SAYS CUBA HAS TURNED INTO LARGELY A SUBSISTENCE ECONOMY SINCE THE COLLAPSE OF THE SOVIET UNION TIME IS RUNNING OUT FOR THE ORDERLY INTRODUCTION OF A CRITICAL MASS OF MARKET ORIENTED REFORMS THE REPORT ISSUED IN NOVEMBER WARNS CUBAN AUTHORITIES FEEL THAT THE TIME FOR DECISIVE ACTION IS THE NEXT THREE TO SIX MONTHS THE REPORT GOES ON TO SAY TOP CUBAN OFFICIALS WHO MET WITH MR DE GROOTE THE REPORT SAYS WERE VERY INTERESTED IN STRENGTHENING RELATIONS WITH THE IMF CUBA HAS FREQUENTLY EXCORIATED THE INSTITUTION IT ISN'T AN IMF MEMBER NOR HAS IT REQUESTED ADMISSION A REPORT SUBMITTED EARLIER LAST YEAR TO MR CASTRO BY MR SOLCHAGA WHO WAS ASKED BY SPANISH PRIME MINISTER FELIPE GONZALEZ TO ADVISE THE REGIME SAYS THERE IS NO INCENTIVE WHATSOEVER IN CUBA TO GENERATE PRODUCTION OR EFFICIENCY MR SOLCHAGA ADVISES SHUTTING DOWN MONEYLOSING STATE ENTERPRISES CUTTING PERSONNEL AND SLASHING SUBSIDIES ON PRODUCTS SO AS TO MAKE THE REMAINING ENTERPRISES PROFITABLE MR SOLCHAGA ALSO CALLS FOR THE CREATION OF A TAX SYSTEM WHICH CUBA CURRENTLY LACKS TOP MEMBERS OF THE CUBAN REGIME HAD SAID EARLIER THAT THEY EXPECTED A PACKAGE OF AUSTERITY MEASURES ALONG THOSE LINES TO BE APPROVED BY THE RUBBERSTAMP NATIONAL ASSEMBLY AT ITS YEAREND MEETING BUT AT THE NATIONAL ASSEMBLY MEETING MR CASTRO WHO DOMINATED THE PROCEEDINGS VEHEMENTLY ATTACKED CAPITALISM IN THE WAKE OF MR CASTRO'S DISPLEASURE LEGISLATORS LEANED AWAY FROM REFORMS AND OPTED INSTEAD FOR OPENING A PERIOD OF NATIONAL DISCUSSION OF THE ISSUES A SECOND MEETING OF THE NATIONAL ASSEMBLY SCHEDULED FOR THE END OF JANUARY TO VOTE ON THE MEASURES NEVER TOOK PLACE EVEN BEFORE THE NATIONAL ASSEMBLY MEETING THE REGIME WAS SENDING SIGNALS THAT IT WAS PUTTING A BRAKE ON REFORMS THE MOST STRIKING IT BANNED CUBANS FROM CREATING PRIVATE RESTAURANTS AND OFFERING TAXI RIDES SERVICES THAT HAD BEEN INCLUDED AMONG A LIST OF MORE THAN 100 OCCUPATIONS THAT THE REGIME LAST SUMMER ALLOWED SOME CUBANS TO PRACTICE LEGALLY FOR THE FIRST TIME THE SIGNALS CONTINUE TO BE NEGATIVE IN LATE JANUARY CARLOS LAGE CUBA'S YOUTHFUL ECONOMIC CZAR RAILED AGAINST BLACK MARKETEERS AND SAID THAT NO MORE LICENSES SHOULD BE GIVEN TO PEOPLE SEEKING SELFEMPLOYMENT MEANWHILE THE PROPOSED REFORM MEASURES ARE BEING DISCUSSED IN WHAT SOME ANALYSTS SAY ARE THOUSANDS OF HIGHLY ORCHESTRATED TIGHTLY CONTROLLED DEBATES IN WORKPLACES ACROSS CUBA THE MEASURES HAVE ALSO BEEN ATTACKED IN THE CUBAN PRESS AS SMELLING OF THIRD WORLD CAPITALISM AND FOR BEING UNSOCIALIST SHOCK MEASURES SOME ANALYSTS WONDER WHETHER MR CASTRO'S DEEP FEAR AND HATRED OF CAPITALISM WILL END UP STRANGLING THE REFORMS AS IT DID IN 1986 WHEN HE CLOSED DOWN POPULAR PEASANT MARKETS BECAUSE PEASANTS WERE BECOMING RICH OTHERS FEEL THAT THE ECONOMIC SITUATION IS SO DIRE THAT MR CASTRO HAS NO CHOICE BUT TO GO FORWARD HESITANTLY FORWARD BUT FORWARD THE IMF'S MR DE GROOTE FOR ONE PREDICTS THAT CUBA'S FEEBLE FIRST STEPS ON THE ROAD TO ECONOMIC TRANSITION WILL PICK UP MOMENTUM AS THE MARKET FORCES SET IN MOTION WILL PROVE IRREVERSIBLE AND MUCH STRONGER THAN THE CURRENT PERCEPTION OF THE CUBAN AUTHORITIES SEEMS TO INDICATE MR DOMINGUEZ OF INTERAMERICAN DIALOGUE IS MORE PESSIMISTIC IT'S CLEARLY A PULLBACK HE SAYS THE OPTIMISTIC READING IS THAT IT'S A PAUSE TO BUILD POLITICAL SUPPORT THE LESS OPTIMISTIC READING IS THAT THEY ARE STALEMATED 9402080014 940208 WHO'S NEWS MORGAN GROUP INC MORGAN GROUP INC ELKHART IND MARIO J GABELLI WAS NAMED A DIRECTOR OF THIS PRODUCTTRANSPORTATION CONCERN INCREASING THE SIZE OF THE BOARD TO SIX MEMBERS MR GABELLI 51 YEARS OLD IS CHAIRMAN OF LYNCH CORP WHICH HOLDS A 44 STAKE IN MORGAN GROUP 9402080013 940208 INTERNATIONAL AUTO SALES ROSE 63 IN JANUARY IN WESTERN EUROPE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN WESTERN EUROPEAN CAR SALES ROSE 63 IN JANUARY BUT BECAUSE JANUARY 1993 SALES WERE ABNORMALLY DEPRESSED NOBODY IS YET CELEBRATING A RECOVERY IN THE SAGGING EUROPEAN MARKET NEWCAR REGISTRATIONS IN 17 WESTERN EUROPEAN COUNTRIES TOTALED 1028910 LAST MONTH COMPARED WITH 967800 A YEAR EARLIER IN JUST THE 12 COUNTRIES OF THE EUROPEAN UNION SALES ROSE 7 TO 961840 UNITS FROM 898940 A YEAR EARLIER ACCORDING TO PRELIMINARY FIGURES FROM THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY GROUP IN BRUSSELS FOLLOWING ON THE HEELS OF A 15 DECLINE IN THE WESTERN EUROPEAN MARKET IN 1993 THE SHARPEST COLLAPSE IN THE MARKET SINCE WORLD WAR II THE IMPROVEMENT IN THE JANUARY NUMBERS IS AN ENCOURAGING FIRST SIGN BUT IT'S CERTAINLY TOO EARLY TO SAY A STRONG RECOVERY IS UNDER WAY SAID FRANCOIS COLLI EUROPEAN AUTO ANALYST AT PARIBAS CAPITAL MARKETS IN LONDON BECAUSE OF TAX INCENTIVES BY MANY EUROPEAN GOVERNMENTS FOR CARS WITH CATALYTIC CONVERTERS IN 1992 MANY EUROPEANS HAD RUSHED THROUGH PURCHASES OF NEW CARS IN DECEMBER 1992 SAPPING DEMAND IN JANUARY 1993 THOSE RESULTING ARTIFICIALLY LOW LEVELS LAST JANUARY ENABLED MANY EUROPEAN MARKETS TO SHOW STUNNING PERCENTAGE INCREASES IN CAR SALES LAST MONTH WITHOUT ANY REAL IMPROVEMENT IN THE UNDERLYING MARKET ANALYSTS SAID IN THE NETHERLANDS CAR SALES JUMPED 48 TO 66000 UNITS AND IN SPAIN SALES ROSE 28 TO 198530 UNITS THE JANUARY FIGURES ARE VERY DISTORTED MR COLLI SAID INDUSTRY ANALYSTS STILL ARE FORECASTING AN ESSENTIALLY STAGNANT MARKET IN 1994 WITH GROWTH OF ONLY BETWEEN 1 AND 3 FROM 1993'S DISMAL PERFORMANCE ONLY IN THE UNITED KINGDOM WHERE A REVIVING ECONOMY IS FUELING A SURGE IN AUTO PURCHASES DID THE CAR MARKET SHOW REAL VIBRANCY WITH SALES RISING 20 TO 198530 UNITS IN JANUARY IN 1993 THE UK WENT AGAINST THE TREND WITH CAR SALES RISING ALMOST 12 ANOTHER POTENTIAL BRIGHT SPOT IS FRANCE WHERE A SERIES OF GOVERNMENT ECONOMIC INITIATIVES COULD GIVE THE INDUSTRY A BOOST IN JANUARY THE FRENCH CAR MARKET GREW 15 WITH SALES OF 129560 UNITS AND SOME ANALYSTS ARE PREDICTING 75 TO 10 GROWTH FOR THE YEAR 9402080010 940208 BUSINESS BRIEF FUTURE COMMUNICATIONS PROPOSES TO SELL MAIN ASSETS TO EMERGE FROM CHAPTER 11 DALLAS FUTURE COMMUNICATIONS INC PROPOSED TO EMERGE FROM BANKRUPTCY COURT BY SELLING ITS MAIN ASSETS IN EXCHANGE FOR NOTES ISSUED BY TWO TINY COMPANIES OWNED IN PART BY FUTURE'S FORMER CHAIRMAN FUTURE'S CREDITORS WOULD GET AN UNSPECIFIED COMBINATION OF CASH AND STOCK IN THE TWO ACQUIRING COMPANIES THOUGH THE STATUS OF ONE OF THEM ACCORDING TO STATE REGULATORS IS MURKY FUTURE AND ITS FORMER CHAIRMAN SERGIO BOSCO WERE ACCUSED IN OCTOBER BY THE SECURITIES AND EXCHANGE COMMISSION OF FRAUDULENTLY INFLATING THE COMPANY'S STOCK PRICE WHICH QUADRUPLED DURING A TWOMONTH PERIOD LAST SUMMER BEFORE TRADING WAS HALTED THE COMPANY FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN NOVEMBER FUTURE ALSO FACES A RAFT OF SHAREHOLDER LAWSUITS AND LITIGATION WITH CREDITORS AND FORMER EMPLOYEES UNDER THE REORGANIZATION PLAN FUTURE WOULD SELL THE FLEDGLING TELEVISION NETWORK OPERATED BY ITS MSTV INC UNIT TO UPM INC A UNIT OF STONE GRILL INTERNATIONAL INC FOR A 70 MILLION 15YEAR 7 NOTE CONVERTIBLE TO STONE GRILL STOCK STONE GRILL IS A FORMER FUTURE UNIT THAT SELLS STONES FOR TABLETOP COOKING FUTURE WOULD ALSO SELL ITS MULTIFAMILY CABLEVISION INC UNIT WHICH OPERATES CABLE SYSTEMS TO TELEWORLD ENTERPRISES LTD IN A COMPLEX TRANSACTION TELEWORLD WOULD PAY 124 MILLION IN NOTES TELEWORLD REPORTED A NET LOSS OF 469615 ON REVENUE OF 197470 FOR THE FISCAL SECOND QUARTER ENDED NOV 30 STONE GRILL POSTED A NET LOSS OF 57575 ON REVENUE OF 23993 FOR THE THIRD QUARTER ENDED SEPT 30 THE FAMILY OF MR BOSCO WHO STEPPED ASIDE AS FUTURE'S CHAIRMAN AND CHIEF EXECUTIVE IN OCTOBER OWNS ABOUT 20 OF TELEWORLD AND STONE GRILL ACCORDING TO FUTURE'S BANKRUPTCY ATTORNEY FUTURE'S SHAREHOLDERS WOULD RECEIVE WHAT IS LEFT OF THE COMPANY IF ANYTHING AFTER THE REORGANIZATION THE PLAN IS SUBJECT TO APPROVAL BY CREDITORS AND THE BANKRUPTCY COURT AN ATTORNEY FOR THE SHAREHOLDERS' COMMITTEE SAID HE COULDN'T COMMENT ON THE PLAN THE PROPOSAL MAY ENCOUNTER STUMBLING BLOCKS ACCORDING TO THE NEW YORK SECRETARY OF STATE'S OFFICE TELEWORLD WHICH IS INCORPORATED IN NEW YORK WAS DISSOLVED ON SEPT 29 BECAUSE IT DIDN'T PAY STATE TAXES FUTURE'S BANKRUPTCY ATTORNEY SAID TELEWORLD IS TRYING TO MAKE AMENDS WITH STATE REGULATORS 9402080009 940208 LEISURE & ARTS THEATER NEITHER INNOCENCE NOR MIRTH IN HER HOUSE BY DONALD LYONS NEW YORK ONEPERSON SHOWS WHERE A PERFORMER IMPERSONATES AN ARTISTIC CELEBRITY OF YESTERYEAR CAN BE LIKE WATCHING COURT TV A GUILTY PLEASURE TAKE IRENE WORTH'S PORTRAIT OF EDITH WHARTON NOW AT THE PUBLIC THEATER THE SMALL AREA IS GOTTEN UP AS AN OLDFASHIONED PRIVATE LIBRARY TWO TALL POTTED PALMS FLANK A LECTERN THERE IS A CARPET THERE ARE SEMIREAL BOOKSHELVES A HIGHTONED MIXTURE OF COMFORT AND CULTURE IS BEING EVOKED AFTER A PIPEDIN PIANO INTERLUDE IRENE WORTH TAKES THE LECTERN HER REGAL WHITEHAIRED PRESENCE SWATHED IN THE YELLOWISH BILLOWS OF A FORTUNY GOWN A GIFT FROM LILLIAN GISHPURCHASED IN 1924IN FLORENCE ITALY ACCORDING TO THE PROGRAM MISS WORTH IS HERE TO TAKE US THROUGH THE LIFE AND WRITINGS OF THE NOVELIST 18621937 AFTER A SHORT PROLOGUE IN WHICH SHE TELLS OF ASKING BERNARD BERENSON ABOUT THE FORMIDABLE BUT LOVABLE WHARTON THE ACTRESS SPEAKS AS WHARTON THE WORDS COME MAINLY FROM THE AUTOBIOGRAPHY THE BACKWARD YEARS OR AS WHARTON'S CHARACTERS THE FORMAT IS LOOSE AND FLOWING LIKE THAT FORTUNY IT TOO IS ATTRACTIVE AND PLEASANT WHARTON WAS A PRODUCT OF THE OLD HIGH NEW YORK SOCIETY OF THE MID19TH CENTURY THE FLOWER OF THE COLONIAL DUTCH AND ANGLOSAXON PLUTOCRACIES WHARTON'S WAS AN UPHOLSTERED CHILDHOOD ON FIFTH AVENUE MISS WORTH RECALLS THE SAVOR OF SOFTSHELLED CRABS WITH A MAYONNAISE OF CELERY AND PEACHFED VIRGINIA HAMS COOKED IN CHAMPAGNE EAT BEFORE YOU GO AND AT NEWPORT WHERE OMNIPRESENT VEILS PROTECTING FEMALE SKIN FROM THE DELETERIOUS SEA AIR BESPOKE AN ALMOST PAGAN WORSHIP OF PHYSICAL BEAUTY BUT FOR LITTLE EDITH THERE WAS ALWAYS A SERPENT OF DISCONTENT OF IRONIC AWARENESS IN THIS THINGCHOKED PARADISE SHE HID IN THE LIBRARY AND WROTE STORIES HER MOTHER DISMISSIVELY REJECTED AN EARLY EFFORT BECAUSE IT CONTAINED A SOCIAL MISTAKE DRAWING ROOMS ARE ALWAYS TIDY THIS WAS PROPHETIC OF HER FAMILY'S LIFELONG ATTITUDE OF EMBARRASSMENT DISGRACE AND SILENCE AT HER LITERARY SUCCESSES FOR OPERAGOING CANVASCOLLECTING NEW YORK WAS AT BOTTOM PHILISTINE ARTHATING EDITH TRIED TO BE A GOOD GILDED AGE GIRL SHE WED BUT HER HUSBAND AN ILLITERATE BECAME A VIOLENT MELANCHOLIC AND THE MARRIAGE WAS SEXUALLY UNFULFILLING NOT UNTIL A LATE AND AGONIZED AFFAIR WITH JOURNALIST MORTON FULLERTON DID WHARTON FIND THE SEXUAL RAPTURES DOCUMENTED IN AN UNPUBLISHED RACY STORY THAT WORTH READS WHARTON LIBERATED HERSELF FROM THE PRISONS OF NEW YORK AND MARRIAGE IN TWO STAGES FIRST SHE BUILT THE MOUNT IN MASSACHUSETTS AS A RETREAT AND SANCTUARY LATER THE MARRIAGE OVER SHE MOVED TO PARIS FOR GOOD IN 1913 SHE HAD FOUND FRIENDS ABOVE ALL HENRY JAMES IN THIS READING PRESENTED TOO ONESIDEDLY AS MERELY A COMIC FUDDYDUDDY TO ENCOURAGE HER IN HER GREAT TASK OF WRITING ABOUT THAT NEW YORK OF IRRESPONSIBLE PLEASURE SEEKERS AND THE FINER SPIRITS THEY DESTROY ON WHARTON'S ART AS OPPOSED TO HER LIFE IRENE WORTH IS SKIMPY CONFINING HERSELF TO SNIPPETS FROM THE HOUSE OF MIRTH AND ETHAN FROME WHARTON SPENT THE WORLD WAR I YEARS IN PARIS DOING PROPAGANDA AND GOOD WORKS MISS WORTH VIVIDLY EVOKES THE TIMES FROM AN ALMOST CLOUDLESS PICNIC BARELY RUFFLED BY THE NEWS FROM SARAJEVO TO THE DAY PARIS'S LONGSTILLED CHURCH BELLS CALLED JOYOUSLY TO EACH OTHER TO MARK THE ARMISTICE AFTER THE WAR COME A FEW GENTLE GLIMPSES OF GILDED OLD AGE WORTH AND WHARTON MAKE A GOOD FIT WHARTON BOTH IN AND OUT OF HER SOCIETY BOTH MAJESTIC AND REBELLIOUS CAST A COLDLY APPRAISING EYE UPON THE SPLENDORS THAT SURROUNDED HER IRENE WORTH AN AMERICAN ARTIST WHO HAS ENJOYED HER GREATEST TRIUMPHS ABROAD HAS HAD AN INCOMPARABLY RICH CAREER COFOUNDING THE CANADIAN SHAKESPEARE FESTIVAL CREATING ROLES IN TS ELIOT'S COCKTAIL PARTY EDWARD ALBEE'S TINY ALICE AND SAMUEL BECKETT'S HAPPY DAYS WHILE WINNING A TONY IN NEIL SIMON'S LOST IN YONKERS HERS IS A WHARTONESQUE BLEND OF NOBLE GRANDEUR AND TOUGHMINDED RISKTAKING FOR 77 MINUTES SHE STANDS AT THAT LECTERN LIKE WHARTON HERSELF WHO DID HER WRITING EITHER AT A LECTERN OR IN BED AND ENACTS A DISPLAY OF CHARACTER AND CHARM NOT OMITTING TO REVEAL THE STEEL UNDERGIRDING THE CHARM SO MUCH FOR THE PLEASURE TIME FOR A DEFLATING WORD ABOUT THIS WHOLE GENRE OF DRESSING UP AS FAMOUS AUTHORS IT ACHIEVED CRITICAL MASS SOME DECADES BACK WITH EMLYN WILLIAMS DOING DICKENS AND HAL HOLBROOK DOING TWAIN AND WAS REPRESENTED IN NEW YORK THREE SEASONS AGO BY EILEEN ATKINS AS VIRGINIA WOOLF AND BY JULIE HARRIS AS ISAK DINESEN THE GIMMICK IS GENERALLY TO SHOW THE AUTHOR SURROUNDED BY EVOCATIVE BRICABRAC AT SOME MOMENT OF LATELIFE CRISIS REMINISCING UPON THE HIGHS AND LOWS OF A COLORFUL CAREER SOMETIMES THE LIFE PLAYS SECOND FIDDLE TO A TEXT AS WITH MS ATKINS WHO SIMPLY READ FROM A ROOM OF HER OWN BUT WHETHER SAD OR COMIC WHETHER MISCAST THE SUPERB JULIE HARRIS DID NOT REALLY CONVINCE AS A DANISH ARISTOCRAT OR IDEALLY CAST AS HERE AT THE PUBLIC THE GENRE IS MERETRICIOUS IT REDUCES ACTING TO A STUNT AN IMPERSONATION IT REDUCES WRITERS TO CELEBRITIES IT REDUCES LITERATURE TO A GREATEST HITS COLLECTION LIKE THOSE NOSTALGIA COMPILATIONS NOT SOLD IN ANY STORE IT GIVES THE AUDIENCE A FALSE SENSE OF INTIMACY WITH GREAT WRITING WHILE IN REALITY IT IS NOT EVEN SO DEMANDING AS LISTENING TO RECORDED BESTSELLERS IN THE CAR AND THE GREATER THE WRITER THE MORE DISHONEST THE EXPERIENCE WHAT WOULD WHARTON HAVE MADE OF THIS ART LITE SO FOR ALL MY PLEASURE AT IRENE WORTH I'D HAVE BEEN BETTER OFF MORALLY READING THE HOUSE OF MIRTH AT HOME OR EVEN SEEING THE AGE OF INNOCENCE ON A SCREEN MR LYONS IS THE THEATRE CRITIC OF THE NEW CRITERION 9402080008 940208 WHO'S NEWS KENNEDYWILSON INC KENNEDYWILSON INC SANTA MONICA CALIF RANDALL G DOTEMOTO 37YEAROLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED CHIEF OPERATING OFFICER MR DOTEMOTO WHO CONTINUES AS CHIEF FINANCIAL OFFICER OF THIS REAL ESTATE INVESTMENT BANKING AND AUCTIONMARKETING COMPANY SUCCEEDS WILLIAM R STEVENSON 53 WHO WAS NAMED VICE CHAIRMAN LAST YEAR 9402080007 940208 POLITICS & POLICY DESPITE CLINTON'S SUPPORT GAYRIGHTS MOVEMENT IS FACING BACKLASH CAMPAIGNS AT THE STATE LEVEL BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF GAYRIGHTS ACTIVISTS THOUGHT THE ARRIVAL OF A SYMPATHETIC PRESIDENT WOULD SIGNIFICANTLY EASE THEIR POLITICAL BATTLES THEY NOW HAVE BEEN DISABUSED OF THAT NOTION AT THE OUTSET OF PRESIDENT CLINTON'S SECOND YEAR THE GAYANDLESBIANRIGHTS MOVEMENT FINDS ITSELF FIGHTING A SIGNIFICANT BACKLASH IN EIGHT STATES STRETCHING FROM FLORIDA TO WASHINGTON OPPONENTS ARE PUSHING TO PUT INITIATIVES DESIGNED TO CURB GAY AND LESBIAN RIGHTS ON THE FALL BALLOT MORE SUCH STATE INITIATIVES STILL COULD POP UP IN THIS ELECTION YEAR AND SOME STATE LEGISLATURES AND CITIES ARE LIKELY TO TAKE UP LEGISLATION WITH SIMILAR GOALS AND IN RESPONSE THE GAY RIGHTS MOVEMENT HAS GEARED UP AN EXTENSIVE NATIONAL CAMPAIGN TO FIGHT BACK ALL TOLD 1994 IS SHAPING UP AS A MORE CRUCIAL YEAR IN DETERMINING THE STATUS OF THE GAYRIGHTS MOVEMENT THAN WAS 1992 THE YEAR MR CLINTON WAS ELECTED OR 1993 THE YEAR OF THE MUCHCELEBRATED DEBATE OVER GAYS IN THE MILITARY AND THE IMPORTANT BATTLES WON'T BE FOUGHT INSIDE WASHINGTON BUT IN THE STATE SKIRMISHES THAT ARE PITTING GAYRIGHTS ACTIVISTS AGAINST RELIGIOUS CONSERVATIVES THE REAL STRUGGLE FOR GAY AND LESBIAN RIGHTS ISN'T GOING TO HAPPEN INSIDE THE BELTWAY SAYS SUE HYDE AN ORGANIZER FOR THE NATIONAL GAY AND LESBIAN TASK FORCE'S FIGHT THE RIGHT PROGRAM I THINK IT'LL BE A VERY IMPORTANT YEAR HER FORCES HAVE JUST WON THE YEAR'S FIRST BIG BATTLE IN MAINE WHERE A PETITION DRIVE TO PUT AN INITIATIVE LIMITING GAY RIGHTS ON THIS YEAR'S BALLOT FELL SHORT OF THE NUMBER OF SIGNATURES REQUIRED BY THE JAN 31 DEADLINE FOR THEIR PART OPPONENTS OF GAY RIGHTS AGREE THE STRUGGLE IS AT AN IMPORTANT JUNCTURE WE KNOW THAT OUR PEOPLE AND THE MAJORITY OF THE POPULACE IN AMERICA WILL NOT ENDORSE HOMOSEXUALITY AS A SPECIAL LIFESTYLE SAYS REV LOU SHELDON HEAD OF THE CALIFORNIABASED TRADITIONAL VALUES COALITION WHICH HAS BEEN ACTIVE IN PUSHING STATE BALLOT INITIATIVES THERE'S A CLEAR MESSAGE IN AMERICA THAT PEOPLE ARE SAYING NO IN NARROW TERMS THE MAIN FIGHT AT THE MOMENT IS OVER WHETHER GAYS AND LESBIANS WILL BE GRANTED SPECIFIC LEGAL PROTECTIONS AGAINST DISCRIMINATION THE SEMINAL BATTLE IN THIS WAR WAS FOUGHT IN COLORADO TWO YEARS AGO WHEN VOTERS APPROVED A CONSTITUTIONAL AMENDMENT PROHIBITING ANTIDISCRIMINATION LAWS FOR GAYS AND LESBIANS THAT AMENDMENT HAS BEEN KNOCKED DOWN IN THE COURTS THOUGH AND ITS FATE HANGS IN JUDICIAL LIMBO BUT IN THE MEANTIME SIMILAR STATE INITIATIVES ARE SPROUTING GROUPS IN WASHINGTON OREGON IDAHO ARIZONA MICHIGAN NEVADA AND MISSOURI ARE MOUNTING DRIVES TO PUT COLORADOSTYLE INITIATIVES ON THEIR STATE BALLOTS A PROPOSED CONSTITUTIONAL AMENDMENT IN FLORIDA AND THE INITIATIVE THAT FELL SHORT IN MAINE WOULD TAKE A DIFFERENT TACK THEY WOULD STRICTLY LIMIT THE SCOPE OF ANTIDISCRIMINATION LAWS TO A SPECIFIC LIST OF GROUPS WHICH POINTEDLY EXCLUDES GAYS AND LESBIANS THE BACKERS OF THOSE INITIATIVES SAY THEY ARE SIMPLY TRYING TO STOP GAYS AND LESBIANS FROM GETTING SPECIAL LEGAL RIGHTS THAT WOULD REPRESENT A PUBLIC ENDORSEMENT OF THEIR LIFESTYLE HOMOSEXUALS ARE COVERED UNDER THE SAME RIGHTS AS EVERYBODY ELSE IS COVERED SAYS THE REV DON WILDMON HEAD OF THE AMERICAN FAMILY ASSOCIATION WHICH HAS STATE AND LOCAL AFFILIATES ACTIVE ON BALLOT INITIATIVES SIMPLY BECAUSE THEY WANT TO GO TO BED WITH SOMEBODY FROM THE SAME SEX DOESN'T MEAN THEY ARE ENTITLED TO SPECIAL RIGHTS HOMOSEXUALS AS YOU WELL KNOW HAVE A HIGH PROFILE RIGHT NOW BUT IT'S BEGINNING TO BACKFIRE GAYRIGHTS ADVOCATES THOUGH SEE THE LOCAL INITIATIVES AS PART OF A MUCH WIDER EFFORT BY THE RELIGIOUS RIGHT TO PUSH ITS BROADER SOCIAL AGENDA PEOPLE WHO LOOK FOR HOTBUTTON ISSUES AROUND WHICH THEY CAN ORGANIZE THEIR PEOPLE AND BUILD THEIR BASE LOOK FOR ISSUES WITH HIGH EMOTIONAL CONTENT SAYS ANN LEWIS A LONGTIME DEMOCRATIC PARTY ACTIVIST AND A GAYRIGHTS SUPPORTER THEY HAVE TRIED AND FAILED ON OTHER ISSUES THEY'VE NOW MOVED ON TO GAY RIGHTS BUT THE NATION'S MOST POWERFUL CONSERVATIVE CHRISTIAN POLITICAL ORGANIZATION PAT ROBERTSON'S CHRISTIAN COALITION SAYS THAT WHILE IT SUPPORTED THE COLORADO INITIATIVE IN 1992 IT ISN'T DRIVING THE CURRENT CROP OF INITIATIVES WE'RE NOT REALLY PUSHING THEM SAYS RALPH REED THE COALITION'S EXECUTIVE DIRECTOR THEY'RE JUST OUT THERE HAPPENING WHATEVER THE FORCES DRIVING THE STATE AND LOCAL INITIATIVES THE GAY AND LESBIAN COMMUNITY IS MOUNTING AN INCREASINGLY SOPHISTICATED COUNTERATTACK THE NATIONAL GAY AND LESBIAN TASK FORCE HAS LAUNCHED ITS FIGHT THE RIGHT PROJECT TO TRAIN LOCAL ACTIVISTS AND DO GRASSROOTS CAMPAIGNING PROJECT LEADERS CONDUCTED A SIXMONTH TOUR AT THE END OF LAST YEAR IN WHICH THEY COVERED 100000 MILES AND 15 STATES TRAINING SOME 3000 COMMUNITY ACTIVISTS AT THE SAME TIME A NEW NATIONAL ORGANIZATION THE GAY AND LESBIAN AMERICANS IS JUST FORMING HERE TO LINK GRASSROOTS ACTIVISTS AROUND THE NATION AND PUSH A FEDERAL GAYANDLESBIANRIGHTS BILL THAT WOULD HEAD OFF SOME OF THE STATELEVEL EFFORTS IN THE MEANTIME THE MOST IMPORTANT OF THE 1994 STATE FIGHTS IS LIKELY TO OCCUR IN FLORIDA THERE LEADERS OF THE STATE'S AMERICAN FAMILY VALUES ORGANIZATION ARE STRUGGLING TO GATHER 429000 SIGNATURES BY THE END OF JULY TO PUT ON THE STATE'S NOVEMBER BALLOT THE INITIATIVE EXCLUDING GAY AND LESBIAN RIGHTS FROM THE STATE'S ANTIDISCRIMINATION STATUTES IT'S NOT AN IMPOSSIBLE TASK BUT IT'S AN EXTREME UPHILL BATTLE SAYS DAVID CATON CHAIRMAN OF THE AMERICAN FAMILY POLITICAL COMMITTEE OF FLORIDA MR CATON SAYS THE INITIATIVE IS DESIGNED TO HEAD OFF NEW ATTEMPTS TO EXPAND THE STATE'S CIVIL RIGHTS LAW TO INCLUDE LANGUAGE ON SEXUAL ORIENTATION WE THINK THERE'S A NEW STYLE OF BEHAVIORORIENTED GROUPS THAT ARE TRYING TO EMPOWER THEMSELVES BY INCLUSION IN DISCRIMINATION LAWS HE SAYS MS HYDE OF THE NATIONAL GAY AND LESBIAN TASK FORCE TERMS FLORIDA AN EXTREMELY IMPORTANT PIVOTAL STATE AS IT PLAYS A BIG AND IMPORTANT ROLE IN NATIONAL AND PRESIDENTIAL POLITICS SO IT WILL PLAY A BELLWETHER ROLE IN ASSESSING THE STATE OF GAY AND LESBIAN RIGHTS IN THE COUNTRY 9402080006 940208 INTERNATIONAL TOYOTA EARNINGS MAY HAVE SILVER LINING PROFIT IS SEEN PLUNGING BUT FIRM WEATHERS BAD TIMES BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS TOYOTA MOTOR CORP GOES SO GOES JAPAN THESE DAYS IT'S GOING BADLY BUT NOT AS BADLY AS IT COULD WHEN JAPAN'S MIGHTIEST MANUFACTURER REPORTS EARNINGS TODAY FOR ITS FIRST HALF ENDED DEC 31 ANALYSTS EXPECT TOYOTA TO TURN AN OPERATING PROFIT OF 10 BILLION YEN 915 MILLION OR MORE THAT FIGURE WOULD REPRESENT A PLUNGE OF 83 FROM A YEAR EARLIER BUT LAST SUMMER WHEN THE YEN WAS SOARING SOME ANALYSTS SAID JAPAN'S PREMIER CAR MAKER MIGHT POST ITS FIRST LOSS SINCE 1949 AS THE RECESSION DEEPENED IN THE AUTUMN PUNDITS CHIDED TOYOTA FOR FAILING TO CUT COSTS FAST ENOUGH NONSENSE REPLIED TOYOTA PRESIDENT TATSURO TOYODA WE'RE DOING PRETTY MUCH EVERYTHING WE OUGHT TO BE DOING THE SOFTSPOKEN MR TOYODA SAID IN A RECENT INTERVIEW THERE ARE ALSO SOME PEOPLE WHO SAY WE'RE GOING TOO FAST SUCH IS THE STRENGTH OF JAPAN'S BEST MANUFACTURERS WHILE THE NATION'S WORST POSTWAR RECESSION HAS FORCED PLENTY OF COMPANIES INTO THE RED INCLUDING AUTO MAKERS NISSAN MOTOR CO AND MAZDA MOTOR CORP OTHER BUSINESSES SUCH AS TOYOTA ARE STILL TURNING A PROFIT THAT'S TRUE IN SPITE OF THEIR GOSLOW APPROACH TO RESTRUCTURING SO FAR SOME OF JAPAN'S STRONGEST COMPANIES HAVE BEEN ABLE TO SWEAT OUT THE SLUMP WITHOUT THE LAYOFFS AND PLANT CLOSINGS THAT MANY HAD FEARED I WOULD THINK THAT THE HALF JUST ENDED IS THE BOTTOM FOR TOYOTA SAID PETER BOARDMAN AUTO ANALYST AT UBS SECURITIES LTD TOYOTA'S ABILITY TO REMAIN IN THE BLACK HE ADDED SHOWS THAT IT'S A VERY STRONG COMPANY VERY WELL MANAGED TOYOTA ISN'T OUT OF THE WOODS YET THE YEN COULD SOAR AGAINST THE DOLLAR HURTING TOYOTA'S OVERSEAS SALES JAPAN'S RECESSION COULD LINGER FURTHER CRIMPING DOMESTIC DEMAND SOME ANALYSTS SAY TOYOTA IS IN FOR ANOTHER STEEP DROP IN EARNINGS IN THE JANUARYTOJUNE HALF AND EARNINGS WON'T START REBOUNDING UNTIL JULY OR LATER WHAT'S MORE TOYOTA'S VERY ABILITY TO AVOID MAKING PAINFUL CUTS COULD COME BACK TO HAUNT IT BECAUSE OF TOYOTA'S STRENGTH THEY HAVE LESS DEMAND ON THEM TO MAKE THOSE CUTS THAN OTHER MAKERS SAID MR BOARDMAN THAT MEANS WHEN RECOVERY DOES COME THEY MAY NEVER RETURN TO PEAK PROFITS INDEED DESPITE MR TOYODA'S PROFESSED NONCHALANCE THIS DOWNTURN HAS ROCKED TOYOTA TO THE CORE COMPANY DIRECTOR RYUJI ARAKI SAID TOYOTA IS STUDYING THE POSSIBILITY OF CLOSING A FACTORY IN JAPAN BUT HE QUICKLY ADDED AS LONG AS WE DON'T GO INTO THE RED WE'LL NEVER DO IT FOR NOW AT LEAST IT LOOKS AS IF TOYOTA MAY DODGE THE BULLET TOYOTA FORECASTS A PARENTBASIS OPERATING PROFIT OF 10 BILLION YEN FOR THE LATEST HALF DOWN FROM 5822 BILLION YEN A YEAR EARLIER IT EXPECTS NET INCOME OF 40 BILLION YEN DOWN 45 ON SALES OF FOUR TRILLION YEN DOWN 12 ANALYSTS SAY EARNINGS COULD COME IN HIGHER THAN THOSE ESTIMATES HOWEVER LUCK IS PLAYING ITS PART LAST AUGUST THE YEN ROCKETED TO NEAR 100 YEN TO THE DOLLAR BUT RETREATED TO ABOUT 112 YEN BY YEAR END HAD THE CURRENCY STAYED AT ITS PEAK LEVELS FOR MOST OF THE HALF SAY ANALYSTS TOYOTA WOULD ALMOST CERTAINLY HAVE POSTED A LOSS TOYOTA'S MUSCLE HAS ALSO CUSHIONED IT FROM THE BUMPS THAT HAVE SIDETRACKED NISSAN AND MAZDA AS JAPAN'S LARGEST CAR MAKER TOYOTA ENJOYS SOME TREMENDOUS ECONOMIES OF SCALE ITS COROLLA JAPAN'S BESTSELLING CAR SOLD MORE THAN 273000 UNITS HERE IN 1993 THAT'S TWICE THE VOLUME OF NISSAN'S BIGGEST SELLER THE SENTRA ACCORDING TO TOYOTA'S FIGURES HAVING DEEP POCKETS HELPS TOO AS OF JUNE 30 TOYOTA HAD 1054 TRILLION YEN IN CASH ON HAND A SUM THAT EXPLAINS WHY THE COMPANY IS NICKNAMED TOYOTA BANK WITH THE CASH TOYOTA CAN AVOID COSTLY BORROWINGS THE INTEREST THE MONEY EARNS ALSO HELPS SHORE UP TOYOTA'S BALANCE SHEET WHILE TOYOTA HASN'T MADE ANY PAINFUL CUTBACKS IT HAS HAD A STRATEGY OF STEADY COST SAVINGS IT IS ECONOMIZING ON PARTS AND TRIMMING BACK THE NUMBER OF VARIATIONS ON THE MODELS IT OFFERS TOYOTA HAS ALSO QUIETLY PRUNED ITS JAPANESE WORK FORCE THROUGH ATTRITION TOYOTA HAD A FULLTIME PAYROLL OF 73000 PEOPLE IN JUNE DOWN FROM 75000 A YEAR EARLIER TOYOTA'S CONSERVATIVE EXECUTIVES GET QUEASY WHEN THE TALK TURNS TO MORE DRAMATIC CUTS LATE LAST YEAR THEY BACKED DOWN FROM AN EFFORT TO TRIM THE CUSTOMARY WINTER BONUS JAPANESE CONSUMERS WOULD PANIC IF THE NATION'S NO 1 AUTO MAKER CUT PAYOUTS THE COMPANY FIGURED THAT CONCERN FOR PUBLIC IMAGE IS LIKELY TO CONTINUE TO RESTRAIN TOYOTA IN THE FUTURE INDEED THE IMAGE ISSUE COULD GET EVEN MORE IMPORTANT AS TOYOTA CHAIRMAN SHOICHIRO TOYODA HAS JUST BEEN NAMED THE NEXT HEAD OF KEIDANREN JAPAN'S MOST PRESTIGIOUS BUSINESS LOBBY THE COMPANY IS ALSO NERVOUS ABOUT DEMORALIZING ITS OWN EMPLOYEES TOYOTA IS CARRYING OUT ITS SOCALLED BR PROGRAM AN EFFORT TO IDENTIFY WAYS TO IMPROVE WHITECOLLAR EFFICIENCY INITIALLY SAID PRESIDENT TATSURO TOYODA BR STOOD FOR BUSINESS REVOLUTION BUT REVOLUTION WAS A BIT MUCH FOR BUTTONEDDOWN TOYOTA IT WOULD MAKE PEOPLE FEEL THAT WE'RE GOING TO FIRE HALF THE EMPLOYEES MR TOYODA SAID SLASHING AT HIS NECK WITH HIS HAND SO NOW WE SAY REFORM THE QUESTION IS WHETHER REFORM WILL BE SUFFICIENT TO RETURN TOYOTA TO THE PROFIT LEVEL IT ENJOYED IN 1990 IN THE US MARKET AMERICAN AUTO MAKERS HAVE OPENED UP A HUGE PRICE ADVANTAGE OVER TOYOTA AND OTHER JAPANESE CAR MAKERS CHAIRMAN TOYODA SAID HIS COMPANY HAS LITTLE HOPE OF CLOSING THAT GAP ANYTIME SOON THE YEN IS TOO HIGH HE NOTED THE COMPANY HOPES THAT MAKING ITS NEW AVALON SEDAN AND OTHER CARS AT ITS EXPANDED PLANT IN KENTUCKY WILL HELP IT HOLD DOWN PRICES IN THE US IN JAPAN SAY ANALYSTS TOYOTA HAS AN OVERCAPACITY PROBLEM THAT MAY WORSEN AS THE COMPANY SHIFTS MORE PRODUCTION OVERSEAS JONATHAN DOBSON OF JARDINE FLEMING SECURITIES LTD FIGURES TOYOTA HAS ONE MILLION CARS' WORTH OF OVERCAPACITY IN JAPAN I THINK THEY HAVE TO CLOSE A FACTORY HE SAID SOMETHING HAS TO GIVE 9402080005 940208 TECHNOLOGY FDA SETS GUIDELINES FOR CITING HORMONE ON DAIRY PACKAGING WASHINGTON AP STORES AND DAIRIES MAY LABEL MILK AS COMING FROM COWS NOT TREATED WITH A CONTROVERSIAL NEW HORMONE BUT THE LABELS CAN'T SUGGEST THE MILK IS ANY SAFER THAN THAT FROM TREATED ANIMALS THE FOOD AND DRUG ADMINISTRATION SAID IN GUIDELINES TO BE PUBLISHED TODAY THE FDA SAID COMPANIES MAY LABEL MILK ICE CREAM AND OTHER DAIRY PRODUCTS AS COMING FROM COWS NOT TREATED WITH RECOMBINANT BOVINE SOMATOTROPIN BUT THAT THE INFORMATION MUST BE IN THE PROPER CONTEXT THAT MEANS A LABEL ALSO MUST CARRY A STATEMENT LIKE NO SIGNIFICANT DIFFERENCE HAS BEEN SHOWN BETWEEN MILK DERIVED FROM RBSTTREATED AND NONRBSTTREATED COWS THE AGENCY SAID THE GENETICALLY ENGINEERED VERSION OF THE NATURALLY OCCURRING HORMONE WENT ON THE MARKET FRIDAY THE DRUG MAKES COWS PRODUCE MORE MILK SOME STORES DAIRIES AND FOOD PROCESSORS WORRIED ABOUT CONSUMER RESPONSE HAVE SAID THEY WOULDN'T CARRY PRODUCTS FROM TREATED ANIMALS OTHERS HAVE WANTED TO LABEL PRODUCTS AS COMING FROM ANIMALS THAT HADN'T BEEN TREATED THE AGENCY SAID LABELS MAY NOT CLAIM THAT MILK IS BSTFREE BECAUSE THE HORMONE OCCURS NATURALLY IN MILK LABELS ALSO CANNOT SAY MILK IS RBSTFREE BECAUSE THAT WOULD IMPLY THE MILK IS DIFFERENT CRITICS OF THE HORMONE'S USE SAY IT POSES RISKS NOT YET THOROUGHLY ADDRESSED THEY SAY COWS THAT PRODUCE MORE MILK ALSO HAVE A HIGHER RISK OF UDDER INFECTIONS THAT MUST BE TREATED WITH ANTIBIOTICS THE FDA SAID THE MILK SUPPLY IS TESTED AGAINST ANTIBIOTIC RESIDUES ALREADY THE AGENCY IS ALSO SUPERVISING A PROGRAM BY THE DEVELOPER MONSANTO CO TO MONITOR THE MILK SUPPLY 9402080004 940208 TECHNOLOGY INTUIT REPORTS A LOSS FOR QUARTER BLAMES ACQUISITION CHARGES MENLO PARK CALIF CITING CHARGES ASSOCIATED WITH ITS ACQUISITION OF CHIPSOFT INC INTUIT INC POSTED A FISCAL FIRSTQUARTER LOSS OF 1672 MILLION OR 13 A SHARE SCOTT COOK INTUIT'S CHIEF EXECUTIVE OFFICER SAID THE LOSS HAD BEEN EXPECTED SINCE THE COMPANY AGREED TO ACQUIRE CHIPSOFT IN SEPTEMBER THERE'S NO SURPRISE HERE HE SAID MR COOK SAID INTUIT IS EXPECTED TO POST NET LOSSES EVERY QUARTER FOR THREE YEARS BECAUSE OF ACCOUNTING WRITEOFFS RELATED TO THE MERGER HOWEVER THE COMPANY IS EXPECTED TO REMAIN PROFITABLE ON AN OPERATING BASIS TOTAL MERGERRELATED CHARGES FOR THE FISCAL FIRST QUARTER ENDED DEC 31 WERE 1816 MILLION INCLUDING 151 MILLION RELATED TO PURCHASED RESEARCH AND DEVELOPMENT THAT HADN'T YET REACHED TECHNOLOGICAL FEASIBILITY INTUIT A MAKER OF POPULAR PROGRAMS FOR PERSONAL AND SMALLBUSINESS FINANCE AGREED TO ACQUIRE CHIPSOFT A PRODUCER OF CONSUMER TAXPREPARATION SOFTWARE IN A STOCK SWAP VALUED AT 281 MILLION IN SEPTEMBER INTUIT SAID IT EXPECTED TO TAKE A CHARGE AGAINST EARNINGS OF ABOUT 100 MILLION RELATED TO THE ACQUISITION HOWEVER MR COOK SAID THE GOOD NEWS IS THAT WE WERE ABLE TO WRITE OFF MORE ASSETS IN THE FIRST QUARTER THAN EXPECTED EXCLUDING MERGERRELATED CHARGES INTUIT SAID IT EARNED 8 MILLION OR 59 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 31 MILLION OR 29 CENTS A SHARE SALES IN THE QUARTER ROSE TO 60 MILLION FROM 332 MILLION A YEAR BEFORE ON AN OPERATING BASIS THE COMPANY BEAT ANALYSTS' EXPECTATIONS ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS HAD EXPECTED INTUIT TO EARN BETWEEN 35 CENTS AND 40 CENTS A SHARE 9402080003 940208 LETTERS TO THE EDITOR THE BEST WAY TO GIVE AWAY MONEY IN HIS JAN 26 RULE OF LAW COLUMN REBIRTH OF THE IVY CARTEL PROF HERSCHEL GROSSMAN ECONOMICS BROWN UNIVERSITY ARGUES 1 IVY LEAGUE COLLEGES COULD GIVE MORE FINANCIAL AID THEREFORE THEY MUST BE COLLUDING TO HOLD AID DOWN 2 COLLEGES AND UNIVERSITIES EARN PROFITS THEY THEN SHARE THEIR SURPLUSES WITH FACULTY AND ADMINISTRATORS IN THE FORM OF EXCESS COMPENSATION HE USES THESE ARGUMENTS TO SUPPORT HIS PREFERENCE FOR MERIT OVER NEEDBASED FINANCIAL AID LET'S EXAMINE HIS FIRST HYPOTHESIS ALL COLLEGES AND UNIVERSITIES NOT JUST THE WEALTHY ONES COULD GIVE MORE FINANCIAL AID TO DO THIS THEY MIGHT FOR EXAMPLE DOUBLE CLASS SIZES AND HIRE FEWER FACULTY FORGO BUILDING MAINTENANCE OFFER NO EXPENSIVE LAB COURSES ETC BUT BECAUSE THEY COULD DO THIS DOES THAT MEAN THAT COLLUSION IS DEFEATING THE MARKET HARDLY THE MARKET IS ASKING FOR SMALL CLASSES WELLMAINTAINED BUILDINGS AND A VARIETY OF COURSES SIMILARLY PROF GROSSMAN'S SECOND HYPOTHESIS IS EQUALLY FLAWED UNDER HIS THEORY ANYONE RECEIVING COMPENSATION ABOVE SOME MINIMUM LEVEL THAT HE WOULD SET IS ABSCONDING WITH PROFITS CONSIDER THIS REDUCTIO AD ABSURDUM PROF GROSSMAN'S OWN INSTITUTION COULD TRY TO PAY HIM A QUARTER OF HIS CURRENT SALARY HE MIGHT THEN REASONABLY ENOUGH DECAMP TO ANOTHER INSTITUTION THIS SUGGESTS THAT A MARKET IS AT WORK NOT THAT A GROUP OF FAT CATS IS DIVIDING THE SPOILS COLLEGES AND UNIVERSITIES HAVE DECIDED THAT A DIVERSE CLASS IS IMPORTANT THEY SEEK DIVERSITY IN MANY SENSES ACADEMIC PERFORMANCE RACE SOCIOECONOMIC STATUS TALENT INTERESTS NEEDBASED AID IS AN EFFICIENT MEANS OF ACHIEVING THIS RESULT WHICH HAPPENS NOT ONLY TO BE SOCIALLY AND PEDAGOGICALLY DESIRABLE BUT ALSO AN IMPORTANT MEANS OF COMPETITION JUST WHAT IS MERIT HAVING ONCE BEEN A DIRECTOR OF ADMISSIONS FOR A VERY GOOD LIBERAL ARTS COLLEGE I OBSERVE THAT THERE IS A DUBIOUS CORRELATION BETWEEN A 17YEAROLD'S MERIT IE GRADES AND TEST SCORES AND SUBSEQUENT PERFORMANCE OR SOCIAL CONTRIBUTIONS PERHAPS WE SHOULD BILL EVERYONE AT AGE 40 FOR THEIR POST SECONDARY EDUCATION BASED ON MERIT BUT THEN WE WOULD HAVE TO DECIDE WHETHER THE MERITORIOUS ACHIEVERS SHOULD PAY MORE OR LESS FOR THE EDUCATIONAL EXPERIENCE IN SUCH A SYSTEM I SUGGEST INNERCITY SCHOOL TEACHERS SHOULD PAY NOTHING FOR THEIR EDUCATION AND IVY LEAGUE FEES BE ASSESSED ECONOMISTS AND LAWYERS PROF GROSSMAN ASSERTS THAT NEEDBASED FINANCIAL AID IS A REWARD FOR BEING POOR SOME REWARD AS IF ANY FAMILY WOULD OPT FOR A LOWER INCOME BASED ON A CHANCE FOR STUDENT FINANCIAL AID IT IS BAD ENOUGH THAT RELATIVELY POORER TAXPAYERS SUBSIDIZE THE UPPER MIDDLE CLASS IN PUBLIC HIGHER EDUCATION WE OUGHT NOT TO ADVOCATE THE SAME OUTCOME IN PRIVATE EDUCATION PROF GROSSMAN IS DISMAYED THAT THE JUSTICE DEPARTMENT HAS ALLOWED AN IVY LEAGUE CARTEL TO BE REBORN THE CARTEL WAS AN ANNUAL MEETING THAT AGREED ON THE AMOUNT OF SCHOLARSHIP MONEY TO BE OFFERED TO EACH OF THOSE STUDENTS APPLYING TO MORE THAN ONE UNIVERSITY WHAT WAS THE HEINOUS ANTICOMPETITIVE BEHAVIOUR BEHAVIOR JUSTICE WAS SEEKING TO ELIMINATE THESE IVY LEAGUE COLLEGES WERE JOINTLY TRYING TO ESTABLISH THE MOST EFFECTIVE WAY TO GIVE AWAY MONEY THEIR MONEY CARTELS SEE WEBSTER ARE FORMED TO CREATE EFFECTIVE WAYS TO INCREASE INCOME IE TO TAKE IN MONEY BY ARTIFICIALLY LIMITING THE SUPPLY OF SOMETHING THE ORIGINAL SUIT STOOD THIS DEFINITION ON ITS HEAD IF THIS THEORY HAD SURVIVED THE UNITED WAY WOULD HAVE BEEN THE NEXT LOGICAL TARGET 9402080002 940208 WHAT'S NEWS WORLDWIDE CLINTON ENDORSED THE UN CHIEF'S REQUEST FOR AUTHORITY TO ORDER AIR STRIKES THE US AND ITS EUROPEAN ALLIES BEGAN MOBILIZING AT LEAST RHETORICALLY IN REACTION TO A DEADLY WEEKEND SHELLING IN SARAJEVO CLINTON SAID HE WELCOMED UN SECRETARY GENERAL BOUTROSGHALI'S REQUEST FOR THE POWER TO ORDER NATO AIR STRIKES ON BOSNIAN SERB POSITIONS THE US ALSO RAISED THE PROSPECT OF OTHER STEPS TO PUNISH SERB AGGRESSION IN BRUSSELS EUROPEAN FOREIGN MINISTERS URGED NATO TO USE ALL MEANS NECESSARY TO END THE SIEGE OF THE BOSNIAN CAPITAL BUT GIVEN THE WEST'S RECORD OF TOUGH TALK WITHOUT ACTION IT ISN'T CLEAR WHAT STEPS WILL BE TAKEN THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM IS EXPECTED TO MEET TOMORROW TO DISCUSS WHETHER TO GRANT THE UN SECRETARY GENERAL'S REQUEST ISRAELI FOREIGN MINISTER PERES MET WITH PLO CHAIRMAN ARAFAT IN CAIRO TO DISCUSS THE LONGDELAYED WITHDRAWAL OF ISRAEL'S TROOPS FROM THE GAZA STRIP AND JERICHO THE DECISION TO RENEW THE STALLED NEGOTIATIONS CAME AFTER MORE THAN A WEEK OF BICKERING EGYPT'S FOREIGN MINISTER HAS BEEN MEDIATING BETWEEN THE TWO SIDES ISRAEL LAUNCHED THREE AIR RAIDS ON REBEL POSITIONS IN SOUTH LEBANON AFTER PROIRANIAN GUERRILLAS KILLED FOUR ISRAELI SOLDIERS AND WOUNDED FIVE OTHERS IN THEIR BLOODIEST ATTACK IN SIX MONTHS SECURITY SOURCES SAID HEZBOLLAH GUERRILLAS CLAIMED RESPONSIBILITY FOR THE AMBUSH AGAINST THE ARMORED ISRAELI PATROL ON THE EDGE OF ISRAEL'S OCCUPATION ZONE THE US TRIED TO REVIVE TALKS ON RESTORING DEMOCRACY IN HAITI BUT KEY HAITIAN LAWMAKERS GAVE THE EFFORT LITTLE CHANCE AT SUCCESS ACCOMPANIED BY US AMBASSADOR SWING AT LEAST SIX TOP HAITIAN LAWMAKERS FLEW TO WASHINGTON FOR TALKS WITH EXILED PRESIDENT ARISTIDE WHO HAS BEEN BLOCKED BY THE MILITARY IN HIS BID TO RETURN TO POWER SURGEON GENERAL ELDERS JOINED WITH FIVE OF HER PREDECESSORS TO ENDORSE LEGISLATION THAT WOULD PROTECT NONSMOKERS BY SEVERELY RESTRICTING SMOKING IN NEARLY EVERY NONRESIDENTIAL BUILDING IN THE COUNTRY A TOBACCO INDUSTRY REPRESENTATIVE DENOUNCED THE PROPOSAL AS GOVERNMENT SOCIAL ENGINEERING ON A VAST SCALE SEN KAY BAILEY HUTCHISON PLEADED NOT GUILTY TO FOUR FELONY CHARGES ALLEGING THAT THE TEXAS REPUBLICAN MISUSED STATE EMPLOYEES AND STATE PROPERTY FOR POLITICAL GAIN AND TAMPERED WITH GOVERNMENT RECORDS WHILE SHE WAS STATE TREASURER HUTCHISON'S TRIAL GOT UNDER WAY IN FORT WORTH AS A JUDGE BEGAN CONSIDERING PRETRIAL MOTIONS A GERMAN COURT CONVICTED TWO NEONAZI SKINHEADS AND A BARTENDER IN THE 1992 MURDER OF A MAN THE BARTENDER THOUGHT WAS PROBABLY JEWISH THE DEFENDANTS WERE SENTENCED TO PRISON TERMS OF EIGHT 10 AND 14 YEARS IN THE ATTACK IN WUPPERTAL THE PRESIDING JUDGE CALLED THE ATTACK AN EXPLOSION SPARKED BY RADICALRIGHT THOUGHTS SHUTTLE DISCOVERY'S CREW DROPPED PLANS TO DEPLOY A 135 MILLION RESEARCH SATELLITE AFTER ENCOUNTERING TECHNICAL PROBLEMS RELEASE OF THE WAKE SHIELD FACILITY WAS TO HAVE BEEN A KEY PART OF THE MISSION WHICH ENDS FRIDAY PHYSICISTS HAD HOPED TO MAKE PURE SEMICONDUCTOR FILM ON THE SATELLITE AIDING IN EFFORTS TO MAKE FASTER COMPUTERS AN AIR FORCE TITAN IV ROCKET BLASTED OFF FROM FLORIDA ON A 13 BILLION MISSION THAT CRITICS SAY IS NO LONGER NEEDED BECAUSE OF THE END OF THE COLD WAR THE TITAN IV CARRIED A MILITARY SATELLITE TO PROVIDE INSTANT COMMUNICATIONS BETWEEN THE PENTAGON AND US TROOPS A BOTCHED TITAN IV LAUNCH IN AUGUST DESTROYED ANOTHER SATELLITE OVER CALIFORNIA IRAN SAID IT ARRESTED MORE THAN 20 MORALLY CORRUPT SUSPECTS IN A PLOT TO ASSASSINATE PRESIDENT RAFSANJANI LAST WEEK INCLUDING SOME LINKED TO LEFTIST GROUPS SEPARATELY A FRENCH JUDGE PROBING THE 1991 SLAYING NEAR PARIS OF EXILED FORMER IRANIAN PRIME MINISTER BAKHTIAR IMPLICATED IRAN AND RECOMMENDED THAT NINE IRANIANS STAND TRIAL JUSTICE SOUTER WAS ASKED TO BLOCK PENNSYLVANIA'S STRICT ABORTION LAW FROM TAKING EFFECT WHILE A GROUP OF ABORTION PROVIDERS CHALLENGE ITS CONSTITUTIONALITY SIX ABORTION PROVIDERS SOUGHT AN EMERGENCY ORDER TO GIVE THEM TIME TO APPEAL A LOWERCOURT RULING THAT SAID THE LAW MUST TAKE EFFECT BEFORE IT CAN BE CHALLENGED SOUTH AFRICAN NEGOTIATORS SOUGHT TO BRING THE RIGHTWING FREEDOM ALLIANCE BACK INTO DISCUSSIONS CONCERNING ALLRACE NATIONAL ELECTIONS SCHEDULED FOR LATE APRIL BUT A MEETING WITH THE ALLIANCE REPORTEDLY ENDED IN STALEMATE LAST NIGHT 9402080001 940208 THE CLINTON BUDGET A POSTCOLD WAR DEFENSE PLAN MAPS A SMALLER BUT READY FORCE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PROPOSED THE FIRST DEFENSE BUDGET SHAPED SPECIFICALLY FOR THE POSTCOLD WAR WORLD THE CONGRESSIONAL DEBATE OVER THE PROPOSED PENTAGON BUDGET FOR FISCAL 1995 IS LESS LIKELY TO FOCUS ON ITS SIZE AT 2522 BILLION REQUESTED BUDGET AUTHORITY IS ACTUALLY UP 32 BILLION FROM THE CURRENT YEAR THAN ON THE ADMINISTRATION'S RADICALLY DIFFERENT PRIORITIES THE PROPOSED BUDGET WOULD BUY NO FIGHTER JETS FOR THE AIR FORCE NO TANKS FOR THE ARMY AND ONLY SIX SHIPS FOR THE NAVY IT WOULD SPEND AS MUCH ON ENVIRONMENTAL CLEANUP JOBS AS ON THE ARMY'S ENTIRE ACQUISITION PLAN AND MORE ON PEACEKEEPING THAN THE MARINES SPEND ON WEAPONS AND AMMUNITION AND WHILE SPENDING 7259 MILLION TO BOLSTER THE US BALLISTICMISSILE ARSENAL IT WOULD SPEND ABOUT HALF THAT AMOUNT ON DISMANTLING THE OLD SOVIET NUCLEAR STOCKPILE IT IS A STANDDOWN BUDGET BUT NOT A PLAN FOR WHOLESALE DEMOBILIZATION IT WOULD TRIM THE SIZE OF THE MILITARY AND SPEND ENOUGH ON OPERATIONS MAINTENANCE AND TRAINING TO KEEP THAT SMALLER FORCE READY BUT IT IS REALLY DESIGNED FOR THE FUTURE CUTTING WEAPONS PROCUREMENT TO INVEST BILLIONS IN DEFENSE RESEARCH AND SUBSIDIZE KEY PARTS OF THE DEFENSE INDUSTRY THERE ARE NO COLDWAR RELICS IN THIS BUDGET DEFENSE SECRETARY WILLIAM PERRY TOLD REPORTERS AT THE PENTAGON YESTERDAY MUCH MORE THAN THE FISCAL 1994 TREADING WATER DEFENSE BUDGET WHICH WAS PARTIALLY A BUSH ADMINISTRATION DOCUMENT THE FISCAL 1995 SPENDING REQUEST REFLECTS THE PRIORITIES OF THE CLINTON ADMINISTRATION OFFERING AN EXPANDED VIEW OF NATIONAL SECURITY THE BUDGET STATES THAT THE ADMINISTRATION'S FIRST PRIORITY IN FOREIGN AND DEFENSE POLICY IS THE HEALTH OF THE AMERICAN ECONOMY AND ITS COMPETITIVENESS IN A HEALTHY GLOBAL ECONOMY IT CALLS FOR EXAMPLE FOR AN INCREASED BUT UNDISCLOSED AMOUNT OF INTELLIGENCE SPENDING ON MONITORING INTERNATIONAL TRADING PRACTICES INCLUDING UNFAIR FOREIGN COMPETITION AND FOREIGN GOVERNMENT EFFORTS TO ACQUIRE SENSITIVE US COMMERCIAL INFORMATION THE BUDGET IS DESIGNED TO PRODUCE A READY TECHNOLOGICALLY SUPERIOR FORCE BUT NOT A MILITARY THAT WILL BE THE WORLD'S POLICEMAN THE UNITED STATES CANNOT AND SHOULD NOT SHOULDER A DISPROPORTIONATE SHARE OF THE HUMAN AND ECONOMIC COSTS OF MAINTAINING INTERNATIONAL PEACE AND SECURITY THE BUDGET STATES MOST NOTABLY THE BUDGET WOULD SPEND AT LEAST 346 BILLION IN IMPLEMENTING THE PENTAGON'S NEW DEFENSE INDUSTRIAL POLICY TO ENSURE THAT US INDUSTRY WILL BE CAPABLE OF OUTFITTING THE FORCES OF THE FUTURE THIS NEW POLICY AIMED AT KEEPING ALIVE DEFENSEUNIQUE SECTORS SUCH AS NUCLEARSUBMARINE YARDS WHILE HELPING THE REST OF THE DEFENSE INDUSTRY SHRINK IS PROBABLY THE CLINTON ADMINISTRATION'S BIGGEST DEPARTURE FROM THE PAST AT THE PENTAGON THE SINGLE BIGGEST ITEM IN THE NEW INDUSTRIAL POLICY IS CVN76 THE NAVY'S NEXT AIRCRAFT CARRIER WHICH IS EXPECTED TO COST ABOUT 448 BILLION HALF OF THAT COMING OUT OF 1995 SPENDING AIDES TO THENDEFENSE SECRETARY LES ASPIN LATE LAST YEAR CONSIDERED DELAYING THE START OF ITS CONSTRUCTION BUT ULTIMATELY DECIDED THAT DOING SO COULD DIMINISH THE CAPABILITY OF TENNECO INC'S NEWPORT NEWS SHIPBUILDING & DRY DOCK CO WHICH WILL BUILD THE CARRIER TO CONSTRUCT NUCLEARPROPELLED VESSELS IN ADDITION THE BUDGET CALLS FOR SPENDING 335 MILLION TO UPGRADE FMC CORP'S BRADLEY FIGHTING VEHICLES AND GENERAL DYNAMICS CORP'S M1 ABRAMS BATTLE TANKS IN ORDER TO SUSTAIN A PRODUCTION CAPABILITY FOR TRACKED COMBAT VEHICLES SIMILARLY 75 MILLION WILL BE SPENT TO PRESERVE THE CAPACITY TO MAKE AMMUNITION THIS YEAR'S BUDGET ALSO INCLUDES 600 MILLION TO BUILD STRATEGIC SEALIFT SHIPS PART OF THE 3 BILLION THAT WILL BE SPENT DURING THE REMAINDER OF THE DECADE TO SUBSIDIZE THE US SHIPBUILDING INDUSTRY INDEED THE NAVY'S SHIPBUILDING PLAN OVER THE NEXT SIX YEARS IS DRIVEN FAR MORE BY INDUSTRIAL CONCERNS THAN BY WARFIGHTING CONSIDERATIONS THAT PLAN CALLS FOR THE CARRIER TO BE BUILT IN FISCAL 1995 THE THIRD AND FINAL SEAWOLF ATTACK SUBMARINE TO BE BUILT THE FOLLOWING YEAR BY GENERAL DYNAMICS CORP'S ELECTRIC BOAT UNIT AT A COST OF ABOUT 28 BILLION AND THEN IN 1998 FOR CONSTRUCTION OF A NEW CLASS OF ATTACK SUBMARINES TO BEGIN IN OTHER SPENDING DEVOTED TO EASING THE TRANSITION INTO THE POSTCOLD WAR WORLD THE BUDGET CALLS FOR SPENDING 28 BILLION TO HELP CLOSE MILITARY BASES 12 BILLION TO HELP DEFENSE PERSONNEL LEARN NEW SKILLS AND FIND NEW WORK AND 2 BILLION TO HELP DEVELOP DUALUSE TECHNOLOGY THAT CAN BE USED BY BOTH THE DEFENSE AND COMMERCIAL SECTORS IT ISN'T CLEAR WHETHER CONGRESS WILL PROVE WILLING TO SPEND THE BILLIONS OF DOLLARS NEEDED TO SUPPORT THIS INDUSTRIAL POLICY OVER THE PAST TWO YEARS MANY LIBERALS ESPECIALLY THOSE FROM CALIFORNIA HAVE BEEN DETERRED FROM CUTTING BIGTICKET PROGRAMS BY THE NEED FOR JOBS BUT WITH THE US ECONOMY RESURGENT THEY MAY NO LONGER FEEL THAT THE DEFENSE BUDGET NEEDS TO BE SUPPORTED AS A JOBS PROGRAM SOME CONSERVATIVES MEANWHILE WATCHING NONWARFIGHTING PROGRAMS PROLIFERATE IN THE DEFENSE BUDGET ARE BEGINNING TO ASK WHETHER THE PRESIDENT'S PROMISE AGAINST CUTTING DEFENSE SPENDING IS A HOLLOW ONE BUT THE BUDGET UNVEILED YESTERDAY GENERALLY INSULATES THE ADMINISTRATION FROM POLITICAL ATTACKS CONSERVATIVE CRITICISM THUS FAR HAS CONCENTRATED ON MILITARY READINESS THE BUDGET ADDRESSES THAT WORRY BY ACTUALLY BOOSTING SPENDING ON OPERATIONS AND MAINTENANCE THAT IS EVERYTHING FROM FUEL FOR TANKS TO TRAINING TIME FOR PILOTS BY NEARLY 5 BILLION TO 929 BILLION SOME LIBERALS MEANWHILE WILL LIKELY BE ASSUAGED BY THE CONTINUED DECLINE IN THE PENTAGON'S PROCUREMENT BUDGET WHICH WOULD DROP 12 BILLION TO 433 BILLION ABOUT ONETHIRD OF ITS LEVEL DURING THE REAGAN ADMINISTRATION'S MILITARY BUILDUP IN THE MID1980S I BELIEVE WE WILL GET AGREEMENT IN THE CONGRESS THAT THESE ARE THE RIGHT THEMES THE RIGHT PRIORITIES SECRETARY PERRY SAID THE CONSOLATION PRIZE FOR THE DEFENSE INDUSTRY IS THAT SPENDING ON RESEARCH AND DEVELOPMENT WHICH WAS ONCE DWARFED BY PROCUREMENT IS CLOSE TO CATCHING UP WITH THAT ACCOUNT REACHING 362 BILLION IN 1995 ONE OF THE BIGGEST DEVELOPMENT PROGRAMS IS THE AIR FORCE'S F22 ADVANCED TACTICAL FIGHTER WHICH IS BEING BUILT BY LOCKHEED CORP AND BOEING CO SOME 247 BILLION IS REQUESTED FOR THE F22 IN FISCAL 1995 UP FROM 208 BILLION THIS YEAR ANOTHER MAJOR DEVELOPMENT PROGRAM IS LOCKHEED'S MILSTAR MILITARY COMMUNICATIONSSATELLITE SYSTEM ON WHICH SPENDING WOULD BE CUT SHARPLY TO 648 MILLION THE PROGRAM APPARENTLY IS BEING TERMINATED AT SIX SATELLITES SMALLER THAN WAS ORIGINALLY ENVISIONED ONCE ENVISIONED AS THE PENTAGON'S MEANS OF GLOBAL COMMUNICATION DURING A NUCLEAR WAR IT IS NOW BEING DESCRIBED AS A STOPGAP WHILE A NEW COMMUNICATIONS SYSTEM IS DEVELOPED IN ADDITION THE FORMER STRATEGIC DEFENSE INITIATIVE WHICH LAST YEAR WAS RENAMED THE BALLISTIC MISSILE DEFENSE ORGANIZATION AND ORIENTED AWAY FROM STAR WARS SPACEBASED SATELLITE ACTIVITY AND MORE TOWARD REGIONAL MISSILE DEFENSES IS BUDGETED FOR 325 BILLION UP FROM 274 BILLION MOST OF ITS SPENDING IS IN R&D THIS YEAR'S BUDGET CALLS FOR TERMINATING DOZENS OF SMALLER PROCUREMENT PROGRAMS AND LETTING THE SHRINKING MILITARY LIVE OFF THE STOCK BUILT UP DURING THE REAGAN BUILDUP THE MOST SIGNIFICANT CUTS END A FEW OBSCURE HELICOPTER PROGRAMS CUMULATIVELY THE SAVINGS TOTAL 39 BILLION A SENIOR PENTAGON OFFICIAL SAID IN ADDITION THE MILITARY CONSTRUCTION BUDGET WAS SLASHED BY 1 BILLION THE HELICOPTER CUTS LEAVE ONLY THREE MAJOR AIRCRAFT PROGRAMS IN PLACE THE F22 WHICH WON'T BEGIN DELIVERY FOR SEVERAL YEARS AND TWO MCDONNELL DOUGLAS CORP PROGRAMS THE NAVY PLANS TO SPEND 258 BILLION BUYING 24 F/A18 STRIKE FIGHTERS AND DEVELOPING THE NEW VERSION OF THAT AIRCRAFT THE AIR FORCE MEANWHILE IS SLATED TO SPEND 299 BILLION ON MCDONNELL DOUGLAS'S TROUBLED C17 MILITARY CARGOJET PROGRAM WHICH IN DECEMBER WAS PUT ON AN UNUSUAL PROBATION BY THE PENTAGON THE FINE PRINT OF THE BUDGET DOCUMENTS RELEASED BY THE PENTAGON STATES THAT THE COST OF EACH OF THE C17S BEING DELIVERED IN FISCAL 1995 HAS RISEN TO 4614 MILLION FAR HIGHER THAN PAST ESTIMATES AND LIKELY TO PROVOKE HOWLS IN CONGRESS 9402080164 940131 LETTERS TO THE EDITOR NEW YORK IS WAITING BEYOND THE HOTEL DOOR AS SOMEONE NOT FORTUNATE ENOUGH TO LIVE AND WORK IN NEW YORK CITY BUT FORTUNATE ENOUGH TO BE ABLE TO PARTAKE OF MUCH OF WHAT IT HAS TO OFFER I WAS AMAZED TO READ SUSAN HAUSER'S LEISURE & ARTS ARTICLE BORED ON FIFTH AWAY FROM HOME TOGETHER DEC 28 ABOUT SOMEONE VISITING NEW YORK AND FINDING NOTHING FOR HER AND HER CHILDREN TO DO INSTEAD OF STAYING COOPED UP IN THE PLAZA HOTEL ALL SHE HAD TO DO WAS WALK ACROSS ONE STREET TO FAO SCHWARTZ OR ACROSS ANOTHER TO CENTRAL PARK OR OUT THE DOOR AND AROUND THE CORNER TO RUMPLEMAYER'S MUCH MORE FUN AND LESS EXPENSIVE THAN ROOM SERVICE OR OUT THE DOOR AND DOWN THE STREET TO THE TREE AT ROCKEFELLER CENTER NOT TO MENTION THE CHRISTMAS SHOW THE MUSEUMS THE DISPLAY OF TOY SOLDIERS AND SUBMARINES AT THE FORBES GALLERY ETC ETC WHAT A SHAME SHE SPENT ALL THE MONEY SHE DUTIFULLY ACCOUNTS FOR IN HER ARTICLE AND RECEIVED SUCH A POOR RETURN SHE MUST COME BACK AND DO HERSELF AND HER CHILDREN A FAVOR AND VENTURE OUT INTO THE MOST WONDERFUL CITY IN THE WORLD TOGETHER THEIR FANTASIES WILL BE FULFILLED AND THEY WILL FIND REALITY IN NEW YORK EXCEEDS EXPECTATIONS MS HAUSER'S STORY ON HER FAMILY'S STAY AT THE PLAZA BRINGS TO MIND OUR OWN LONG WEEKEND IN NEW YORK THIS TIME LAST YEAR WHILE NOT THE PLAZA THE MIDTOWN MARRIOTT PROVED AN EXCELLENT BASE FOR THREE DAYS OF TYPICAL NEW YORK CITY TOURISM JOGGING IN CENTRAL PARK BROADWAY THEATER FAO SCHWARTZ THE METROPOLITAN MUSEUM BLOOMINGDALES ETC WHEN DAN THEN 11 NOW 12 RECENTLY REVIEWED HOME ALONE 2 HE BEGGED US TO TAKE HIM BACK TO NEW YORK THOUGH I DON'T BELIEVE HIS IMAGE OF THE CITY'S WONDER RELATES TO MS HAUSER'S CONCEPT OF HANGING OUT IN THE CONFINES OF A HOTEL SEE RELATED LETTER LETTERS TO THE EDITOR SCHWARZ WITHOUT THE T' WSJ FEB 8 1994 9401310173 YY94 MM02 9402080139 940126 RULE OF LAW REBIRTH OF THE IVY CARTEL BY HERSCHEL GROSSMAN THE RECENT DECISION BY THE JUSTICE DEPARTMENT TO DROP ITS ANTITRUST CASE AGAINST THE IVY LEAGUE COLLEGES AND MIT SHOWS THE POLITICAL CLOUT OF OUR ELITE EDUCATIONAL INSTITUTIONS IT ALSO MEANS THAT THESE COLLEGES WILL BE ABLE TO COLLUDE AGAIN TO RESTRICT FINANCIAL AID AND TO DENY UNDERGRADUATES THE BENEFITS OF MERIT SCHOLARSHIPS FIRST SOME HISTORY ALMOST 40 YEARS AGO THE EIGHT COLLEGES IN THE IVY GROUP BROWN COLUMBIA CORNELL DARTMOUTH HARVARD PENNSYLVANIA PRINCETON AND YALE TOGETHER WITH MIT FORMED A CARTEL TO LIMIT COMPETITION FOR DESIRABLE STUDENTS SUCH STUDENTS ARE GENERALLY UNDERGRADUATES WHO HAVE EXCEPTIONAL ACADEMIC ARTISTIC OR ATHLETIC TALENT OR WHO ARE FROM HISTORICALLY UNDERREPRESENTED RACIAL AND ETHNIC GROUPS THE MEMBERS OF THE CARTEL AGREED NOT TO AWARD MERIT SCHOLARSHIPS TO UNDERGRADUATES INSTEAD THEY AGREED TO GIVE FINANCIAL AID THAT IS TO DISCOUNT THE TUITION OF UNDERGRADUATES ONLY ON THE BASIS OF NEED TO ENFORCE THIS AGREEMENT THE IVY COLLEGES AND MIT HELD AN ANNUAL MEETING CALLED OVERLAP AT WHICH THEY DECIDED ON THE DOLLAR AMOUNTS OF FINANCIAL AID THAT THEY PLANNED TO OFFER INDIVIDUAL STUDENTS FOR DECADES THIS CARTEL FUNCTIONED OPENLY AND WITHOUT LEGAL CHALLENGE BUT IN 1991 THE JUSTICE DEPARTMENT BROUGHT AN ANTITRUST ACTION AGAINST THE IVY COLLEGES AND MIT FOR COLLUDING TO FIX TUITION CHARGES THE EIGHT IVY COLLEGES QUICKLY ENTERED INTO A CONSENT DECREE THAT TERMINATED OVERLAP MIT HOWEVER DECIDED TO LITIGATE LAST MONTH APPARENTLY UNDER STRONG POLITICAL PRESSURE THE JUSTICE DEPARTMENT CAPITULATED THE SETTLEMENT BETWEEN JUSTICE AND MIT ALLOWS COLLEGES TO PARTICIPATE IN COOPERATIVE FINANCIAL AID ARRANGEMENTS THE COLLEGES CAN AGREE TO PROHIBIT MERIT SCHOLARSHIPS AND EXCHANGE INFORMATION TO COORDINATE THEIR NEEDBASED FINANCIAL AID THE JUSTICE DEPARTMENT IS ALSO AGREEABLE TO AMENDING THE 1991 IVY CONSENT DECREE TO INCLUDE THE TERMS OF THE MIT SETTLEMENT THE SETTLEMENT'S ONLY SUBSTANTIAL RESTRICTION IS THAT THE PARTICIPANTS MUST PRACTICE NEEDBLIND ADMISSIONS WHICH MEANS THAT THEY MUST MAKE ADMISSIONS DECISIONS WITHOUT CONSIDERING WHICH APPLICANTS NEED FINANCIAL AID THEY MUST ALSO GIVE EACH ADMITTED APPLICANT ALL THE FINANCIAL AID THAT HE OR SHE NEEDS MIT AND ALL THE IVY COLLEGES EXCEPT BROWN ALREADY CLAIM TO SATISFY THESE CONDITIONS IN DEFENDING THEIR CARTEL MIT AND THE IVY COLLEGES ARGUE THAT THEY ARE ALREADY BUDGETING ABOUT THE MAXIMUM AMOUNT OF MONEY FOR FINANCIAL AID THAT THEY CAN AFFORD HENCE IF COMPETITION WERE TO FORCE THEM TO OFFER MERIT SCHOLARSHIPS THEY WOULD HAVE TO DECREASE FINANCIAL AID TO NEEDY STUDENTS THIS ARGUMENT IS SPECIOUS THE RICHEST IVY COLLEGES HARVARD YALE AND PRINCETON HAVE SUBSTANTIALLY LARGER INCOME FROM ENDOWMENTS AND ANNUAL GIFTS THAN THE OTHER IVY COLLEGES AND MIT BUT THE RICHEST COLLEGES DEVOTE A SMALLER FRACTION OF THEIR GROSS REVENUE TO FINANCIAL AID FOR UNDERGRADUATES THIS ANOMALY SUGGESTS THAT COLLUSION ENABLES THE RICHER PARTICIPANTS TO GIVE LESS FINANCIAL AID THAN THEY WOULD GIVE UNDER COMPETITION IT ALSO SUGGESTS THAT THE RICHEST COLLEGES HAVE NOT BEEN BUDGETING THE MAXIMUM AFFORDABLE AMOUNT TO UNDERGRADUATE FINANCIAL AID THEY COULD INCREASE SIGNIFICANTLY THE AMOUNT OF FINANCIAL AID THAT THEY GIVE TO UNDERGRADUATES SIMPLY BY DEVOTING TO UNDERGRADUATE FINANCIAL AID THE SAME FRACTION OF GROSS REVENUE AS DO SOME OF THE POORER COLLEGES MIT AND THE IVY COLLEGES WANT US TO BELIEVE THAT THEIR COSTS OF PROVIDING AN UNDERGRADUATE EDUCATION CANNOT BE REDUCED IN ORDER TO FREE UP FUNDS FOR ADDITIONAL FINANCIAL AID BUT THE COSTS OF THESE COLLEGES AND OF OTHER NOTFORPROFIT ENTERPRISES ARE ARTIFICIALLY INFLATED THE NOTFORPROFIT DESIGNATION ALLOWS COLLEGES TO KEEP THEIR BOOKS IN SUCH A WAY THAT THEY REPORT NO PROFITS BUT THIS BOOKKEEPING CONTRIVANCE DOESN'T MEAN THAT COLLEGES DON'T EARN WHAT AN ECONOMIST WOULD PROPERLY CALL PROFITS RATHER IT MEANS THAT THEY INCLUDE IN WHAT THEY CALL THEIR COSTS SOME AMOUNTS THAT ARE REALLY PROFITS IN FACT PRIVATE COLLEGES FUNCTION SIMILARLY TO PRODUCER COOPERATIVES OR PARTNERSHIPS THE PARTNERS IN THIS CASE THE FACULTY AND ADMINISTRATORS SHARE ANY EXCESS REVENUE OVER TRUE COSTS IN THE FORM OF GENEROUS COMPENSATION AND PERQUISITES ONE HAS TO CONCLUDE THAT THE IVY COLLEGES AND MIT COULD CONTINUE GENEROUS NEEDBASED FINANCIAL AID EVEN IF THEY WERE ALSO OFFERING MERIT SCHOLARSHIPS BUT WOULD THEY DO SO NOT NECESSARILY IT IS POSSIBLE THAT THEY WOULD REDUCE NEEDBASED FINANCIAL AID IF COMPETITION FOR DESIRABLE STUDENTS INTENSIFIED AND MERIT SCHOLARSHIPS DEPRESSED NET TUITION REVENUE BUT THIS OUTCOME IF IT WERE TO OCCUR WOULD NOT HAVE BEEN FORCED ON THE COLLEGES RATHER IT WOULD RESULT FROM THEIR CHOICE TO REDUCE NEEDBASED FINANCIAL AID RATHER THAN TO CUT COSTS WHAT WOULD BE THE SOCIAL CONSEQUENCES OF REPLACING NEEDBASED FINANCIAL AID WITH MERIT SCHOLARSHIPS IN DEFENDING ITS SETTLEMENT WITH MIT THE JUSTICE DEPARTMENT STRESSED THE VALUE OF NEEDBASED FINANCIAL AID IN ENHANCING EQUAL OPPORTUNITY BUT NEEDBASED FINANCIAL AID ALSO HAS THE UNDESIRABLE EFFECT OF REDUCING THE INCENTIVE FOR FAMILIES TO MAKE THEIR OWN PROVISIONS FOR PAYING COLLEGE TUITION THE LARGER A FAMILY'S INCOME AND SAVINGS AND THE FEWER CHILDREN IT HAS THE SMALLER THE AMOUNT OF NEEDBASED FINANCIAL AID FOR WHICH IT QUALIFIES IN THIS WAY NEEDBASED FINANCIAL AID PENALIZES INDUSTRIOUS AND THRIFTY FAMILIES WHO HAVE WORKED SAVED AND LIMITED FAMILY SIZE IN ORDER TO BE ABLE TO PAY TO SEND THEIR CHILDREN TO COLLEGE IN SHORT NEEDBASED FINANCIAL AID ENCOURAGES SENSIBLE FAMILIES TO BE IMPRUDENT ACCORDING TO THIS ANALYSIS IT IS NOT SURPRISING THAT THE SAVINGS OF MOST MIDDLEINCOME FAMILIES ARE INADEQUATE FOR THEM TO PAY TO SEND THEIR CHILDREN TO THE IVY COLLEGES AND MIT OR THAT APPLICANTS FROM MIDDLEINCOME FAMILIES NEED MORE AND MORE FINANCIAL AID RESPONDING TO THE INCENTIVES CREATED BY NEEDBASED FINANCIAL AID PERHAPS MIDDLEINCOME FAMILIES HAVE COME TO REGARD SAVING TO SEND CHILDREN TO COLLEGE AS POINTLESS AND FOOLISH MERIT SCHOLARSHIPS WOULD HELP TALENTED APPLICANTS FROM MIDDLECLASS FAMILIES WHO DO NOT QUALIFY FOR NEEDBASED FINANCIAL AID AND WOULD ALSO MEAN MORE GENEROUS FINANCIAL AID FOR TALENTED APPLICANTS FROM POOR FAMILIES WITH THE UNDERGRADUATE FINANCIAL AID BASED ON MERIT FINANCIAL AID WOULD NOT BE A REWARD FOR BEING POOR AS IT OFTEN IS NOW RATHER IT WOULD BE A PRIZE AVAILABLE TO ANY APPLICANT WHO RANKS AT THE TOP OF THE APPLICANT POOL MR GROSSMAN IS A PROFESSOR OF ECONOMICS AT BROWN UNIVERSITY SEE RELATED LETTERS LETTERS TO THE EDITOR THE BEST WAY TO GIVE AWAY MONEY WSJ FEB 8 1994 9401260003 YY94 MM02 9402070181 940207 PENTECH IS PREPARING TO WRITE UP BIG GAIN IN 1STQUARTER RESULTS EDISON NJ PENTECH INTERNATIONAL INC IS POISED TO REPORT SHARPLY HIGHER RESULTS THANKS TO A STRATEGY OF PITCHING ITS WRITING INSTRUMENTS BEYOND THE PEAK BACKTOSCHOOL SEASON DAVID MELNICK PRESIDENT EXPECTS TO REPORT THIS WEEK THAT EARNINGS AND SALES FOR THE FISCAL FIRST QUARTER USUALLY A SLOW PERIOD ROSE MORE THAN 50 THE QUARTER ENDED DEC 31 A YEAR EARLIER PENTECH WHICH MAKES DESIGNER PENS PENCILS AND MARKERS HAD NET INCOME OF 427000 OR FOUR CENTS A SHARE ON SALES OF 64 MILLION THE BIG THRUST HAS BEEN TO PRESENT PENTECH AS A COMPANY YOU CAN BUY PRODUCTS FROM ALL YEAR ROUND MR MELNICK SAID IN AN INTERVIEW THE BIGGEST MONTHS FOR THE COMPANY TRADITIONALLY ARE LATE SPRING AND EARLY SUMMER WHEN RETAILERS BEGIN STOCKING THEIR SHELVES WITH SUPPLIES FOR STUDENTS RETURNING TO SCHOOL BUT BEGINNING LAST YEAR PENTECH BEGAN MERCHANDISING PRODUCTS WITH HOLIDAY DESIGNS TO INCREASE ITS OFFPEAK BUSINESS FOR EXAMPLE PENTECH SELLS PENCILS DURING HALLOWEEN AS AN ALTERNATIVE TO CANDY FOR TRICKORTREATERS THIS YEAR PENTECH IS BROADENING THE PROGRAM IT IS ALSO BRANCHING INTO NEW BUSINESSES THAT HAVE LESS OF A SEASONAL SWING SUCH AS ITS NEW COLOR CLUB PRODUCT LINE DESIGNED TO APPEAL TO THE CHILDREN'S ACTIVITY MARKET AND COME THIS SPRING PENTECH WILL MORE AGGRESSIVELY ENTER THE COSMETIC PENCIL BUSINESS MAKING THE COSMETIC PENCILS IS A NICE DIVERSIFICATION BUT WE ARE USING A LOT OF SKILLS WE LEARNED IN THE PENCIL FACTORY MR MELNICK SAID HE ADDED THAT THE SAME CHANNELS THE COMPANY USES FOR ITS WRITING INSTRUMENTS CAN BE USED TO SELL THE COSMETIC PENCILS PENTECH WHICH ALREADY MAKES ABOUT 40 OF ITS PRODUCTS IN A TWOYEAROLD NEW JERSEY PLANT CALLED SAWDUST PENCIL CO IS OUTFITTING A SEPARATE FACILITY NEARBY TO PRODUCE COSMETIC PENCILS THAT PLANT IS EXPECTED TO BE FULLY OPERATIONAL IN THE NEXT FEW MONTHS THE BALANCE OF ITS PRODUCTS ARE IMPORTED 9402070179 940207 OPEN SEASON AS ELECTIONS APPROACH THE UPRISING IN MEXICO IS SHAKING UP POLITICS LEFTIST PARTY HAS RESURFACED AND PRESIDENTIAL HOPEFULS VOW TO TACKLE POVERTY SHIFT IN ECONOMIC EMPHASIS BY PAUL B CARROLL AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY AFTER NEARLY SEVEN DECADES OF PREDICTABLE POLITICS HOHUM CAMPAIGNING AND ONEPARTY CONTROL OF POWER THE MEXICAN PRESIDENTIAL ELECTION SEASON IS ABOUT TO GET INTERESTING THE REASON CAN BE SUMMED UP IN ONE WORD CHIAPAS THE UPRISING BY ETHNIC INDIANS IN THE SOUTHERN STATE OF CHIAPAS HAS STIRRED UP OLD PROBLEMS STARK POVERTY VAST DISPARITIES IN WEALTH POLITICAL CORRUPTION AT A CRITICAL TIME THE RESULT IS A SURPRISINGLY OPEN POLITICAL SEASON FAR DIFFERENT FROM THE USUAL RESIGNED WAIT FOR THE RULINGPARTY CANDIDATE TO BE ELECTED AS HE HAS BEEN EVERY SIX YEARS SINCE THE 1920S THIS TIME AROUND THE TRADITIONAL OPPOSITION PARTY HAS ALL BUT DISAPPEARED THE LEFTIST PARTY HAS SUDDENLY RESURFACED AND RUMBLINGS OF DISSENSION HAVE APPEARED IN THE NORMALLY MONOLITHIC RULING PARTY EVEN IF THE RULINGPARTY CANDIDATE DOES WIN IN AUGUST STILL THE MOST LIKELY OUTCOME THE SOUL SEARCHING THAT IS OCCURRING DURING THIS ELECTORAL SEASON WILL MEAN A CHANGE IN PRIORITIES FOR MEXICO HAVING FOCUSED OVER THE PAST FIVEPLUS YEARS ON REVIVING ITS ECONOMY GOVERNMENT OFFICIALS SAY MEXICO WILL NOW CONCENTRATE ON HOW WEALTH CAN BE DISTRIBUTED MORE EQUITABLY HAVING LEFT THE POLITICAL SYSTEM LARGELY UNTOUCHED TO MAINTAIN STABILITY IN THE FACE OF BROAD ECONOMIC CHANGES THE COUNTRY WILL DEAL EVEN MORE AGGRESSIVELY WITH THE CORRUPTION THAT HAS PLAGUED POLITICS FOR DECADES CHIAPAS HAS CALLED ON THE SOCIAL CONSCIENCE OF US ALL SAYS LUIS DONALDO COLOSIO THE PRESIDENTIAL CANDIDATE OF THE RULING PRI PARTY NOW MORE THAN EVER IT'S IMPORTANT THAT MEXICO UNDERGO A PROFOUND SOCIAL CHANGE WE HAVE TO PAY ATTENTION TO POOR REGIONS TO SOCIAL PROGRAMS AND TO DEMOCRACY MR COLOSIO SAYS THAT IF ELECTED HE WILL CONTINUE THE BASIC ECONOMIC POLICIES THAT PRESIDENT CARLOS SALINAS HAS USED TO RESTORE MEXICO'S INTERNATIONAL CREDIBILITY BUT WILL TRY TO FOCUS MORE ON ECONOMIC GROWTH AS A WAY TO BENEFIT ALL MEXICANS HE ALSO SAYS HE WOULD DECENTRALIZE GOVERNMENT ENDING THE PRACTICE OF NAMING OFFICIALS IN THE CENTRAL GOVERNMENT AS THE RULING PARTY'S GUBERNATORIAL CANDIDATES INSTEAD LOCAL OFFICIALS WOULD BE CHOSEN WHAT PEOPLE IN CHIAPAS AND ELSEWHERE DO NOT ACCEPT ANY MORE ARE DECISIONS MADE BY THE CENTRAL GOVERNMENT AND IMPOSED IN AN AUTHORITARIAN WAY HE SAYS IF CUAUHTEMOC CARDENAS THE PRESIDENTIAL CANDIDATE OF THE LEFTIST PRD PARTY WERE TO WIN HE WOULD GO EVEN FURTHER IN REORIENTING MEXICO HE CALLS THE ECONOMIC SITUATION VERY PRECARIOUS AND SAYS THE COUNTRY NEEDS A MORE JUST POLITICAL AND ECONOMIC SYSTEM NO MATTER WHO WINS AFTER DECADES DURING WHICH POVERTY WAS JUST ACCEPTED AS A FACT OF LIFE IN MEXICO THE DISPARITY OF WEALTH HAS THRUST ITSELF INTO THE POLITICAL CAMPAIGN INTELLECTUALS ARE SAYING CHIAPAS COULD TURN OUT TO BE A DEFINING MOMENT IN MEXICAN HISTORY A POTENT SYMBOL OF THE VAST DIVIDE BETWEEN MEXICO'S RICH AND POOR AN OFFICIAL IN THE COLOSIO CAMPAIGN ADDS THAT IT'S SHAMEFUL TRULY SHAMEFUL THAT WE HAD TO WAIT FOR SOMETHING LIKE CHIAPAS TO HAPPEN TO MAKE US AWARE OF HOW BAD THINGS ARE CHIAPAS ALSO ENSURES THAT POLITICAL REFORM WILL BECOME A MAJOR ISSUE IN THE CAMPAIGN AND THAT AFTER YEARS OF TALKING ABOUT ENDING THE RULING PARTY'S STRANGLEHOLD ON THE ELECTORAL SYSTEM SOMETHING MAY FINALLY CHANGE THAT IS PARTLY BECAUSE THE HARDLINERS WITHIN THE GOVERNMENT FOUGHT A BEHINDTHESCENES BATTLE TO TRY TO CRUSH THE REBELLION MILITARILY BUT AFTER SEVERAL TENSE DAYS LOST OUT TO OTHERS IN THE RULING PARTY WHO ADVOCATE CHANGE THE RISKS OF THE HARDLINERS ARE STILL THERE BUT THEY'RE MORE ISOLATED SAYS MANUEL CAMACHO SOLIS THE GOVERNMENT'S NEGOTIATOR WITH THE REBELS AND BY ALL ACCOUNTS THE RUNNERUP TO MR COLOSIO IN THE RULING PARTY'S SELECTION OF ITS PRESIDENTIAL CANDIDATE ANALYSTS ALSO SAY CONCERNS ABOUT CHIAPAS MADE IT MUCH EASIER TO PUSH THROUGH SOME RECENT ELECTORAL REFORMS WHICH IN A MARKED CHANGE WERE SIGNED BY ALL THE MAJOR POLITICAL PARTIES HERE WE WILL HAVE A MUCH BETTER CLIMATE IN 1994 MR CAMACHO SAYS PEOPLE INSTEAD OF HAVING DEMONSTRATIONS IN THE STREETS WILL START DISCUSSING POLITICS THERE WILL BE MORE PRESSURE ON THE RULING PARTY TO REFORM ITSELF AND WE CAN NOW GO TO THE GUERRILLAS AND SHOW THEM THAT WE'VE BEGUN TO CHANGE IN RETROSPECT IT IS NO SURPRISE THAT THE TROUBLE STARTED IN CHIAPAS MANY OF ITS MORE THAN THREE MILLION INHABITANTS DESCEND DIRECTLY FROM THE PROUD MAYAN EMPIRE YET THEY LIVE IN MEXICO'S MOST IMPOVERISHED STATE COFFEE PRICES HAVE TUMBLED WIPING OUT THE LIVELIHOODS OF MANY OIL JOBS HAVE DISAPPEARED AS THE STATE OIL COMPANY PETROLEOS MEXICANOS HAS STREAMLINED ITSELF MEANWHILE CATTLE RANCHERS HAVE PUSHED POOR FARMERS OFF THEIR LAND SOMETIMES VIOLENTLY TO CREATE MORE GRAZING ROOM WITH THE STATE GOVERNMENT STANDING SOLIDLY BEHIND THE BUSINESS INTERESTS DOZENS OF DISCONTENTED INDIANS HAVE MYSTERIOUSLY DISAPPEARED MAKING CHIAPAS A ROUTINE STOP FOR GROUPS INVESTIGATING HUMANRIGHTS ABUSES IN MEXICO THE INITIAL REACTION AMONG MANY MEXICANS WAS TO PLAY DOWN THE SIGNIFICANCE OF THE UPRISING CHIAPAS AFTER ALL IS ALMOST ANOTHER COUNTRY IT IS FULL OF MAYAN INDIANS DEEP IN THE RAIN FOREST SEEMING TO HAVE MORE IN COMMON WITH GUATEMALA THAN WITH THE RAPIDLY INDUSTRIALIZING DESERT STATES CLOSER TO THE US BUT THE THIRD WORLD CONDITIONS THERE CONTRAST SO SHARPLY WITH THE FIRST WORLD ASPIRATIONS OF SO MUCH OF MEXICO THAT THEY QUICKLY BEGAN TO RESONATE THROUGHOUT THE COUNTRY TENS OF THOUSANDS OF PEOPLE TURNED OUT IN THE CENTER OF MEXICO CITY TO SUPPORT THE REBELS AND DEMONSTRATIONS HAVE SHUT DOWN HIGHWAYS LEADING OUT OF THE CAPITAL CHIAPAS IS BECOMING THE GENERIC TERM FOR POVERTYSTRICKEN AREAS THROUGHOUT MEXICO AND THERE ARE MANY AREAS JUST OUTSIDE MEXICO CITY ARE FLAT ON THEIR BACKS BECAUSE MINING JOBS ARE DISAPPEARING CORN GROWERS ARE LOSING GOVERNMENT SUBSIDIES THAT HAD LET THEM MAKE PROFITS EVEN IF THEIR COSTS WERE 50 ABOVE THE WORLD AVERAGE AND THEY KNOW THEIR HARD DRY LAND WON'T LET THEM COMPETE WITH THE US GRAIN BELT FARMERS COMPLAIN THAT THEY CAN'T AFFORD LOANS BECAUSE INTEREST RATES ARE SO HIGH AND SOMETIMES SHOW THEIR DISPLEASURE BY OCCUPYING BANKS SQUATTERS COVER THE COUNTRY EARNING THE NICKNAME PARACHUTISTS BECAUSE THEY SEEM TO BE ABLE TO DROP INTO ANY AREA THE ISSUE IS LIKELY TO REMAIN PROMINENT FOR A LONG TIME PARTLY BECAUSE THE REBELS HAVE SHOWN THEMSELVES TO BE SURPRISINGLY SOPHISTICATED IN KEEPING THEIR CAUSE ALIVE EVEN THOUGH IT HAS BEEN WEEKS SINCE THERE HAS BEEN REAL FIGHTING THE ENIGMATIC REBEL LEADER KNOWN AS SUBCOMMANDER MARCOS HAS MANAGED TO SEND OCCASIONAL COMMUNIQUES TO NEWSPAPERS IN MEXICO CITY WHICH PUBLISH THEM HE ALTERNATES BETWEEN ANGER AND A SURPRISING SENSE OF HUMOR IN A LETTER PUBLISHED FRIDAY HE WROTE THE COUNTRY WANTS CHIAPAN OIL CHIAPAN ELECTRIC ENERGY CHIAPAN RAW MATERIALS THE CHIAPAN WORK FORCE IN OTHER WORDS CHIAPAN BLOOD BUT IT DOESN'T WANT THE OPINION OF CHIAPAN INDIANS THE LETTERS ARE SO PASSIONATE AND CAREFULLY CRAFTED THAT OCTAVIO PAZ WINNER OF THE NOBEL PRIZE FOR LITERATURE HAS WRITTEN THAT THEY HAVE MOVED HIM DEEPLY WITH CHIAPAS CATCHING PEOPLE'S ATTENTION THE COUNTRY IS FINALLY FOCUSING ON ITS INEQUITIES AND THEY ARE STARTLING THE MINIMUM WAGE ADJUSTED FOR INFLATION HAS DROPPED 24 SINCE 1988 IT'S NOT JUST THE POOREST WHO HAVE SUFFERED EITHER ONE STUDY HAS FOUND THAT THE BOTTOM 40 OF THE POPULATION SAW THEIR TOTAL SHARE OF MEXICO'S WEALTH DROP TO 12 FROM 15 DURING THE PAST FIVE YEARS THE SAFETY NET IN THE PROGRAM OF PRESIDENT SALINAS WAS AN ANTIPOVERTY MEASURE CALLED SOLIDARITY UNDER WHICH THE FEDERAL GOVERNMENT PROVIDES RAW MATERIALS NEEDED TO IMPROVE BASIC SERVICES TO COMMUNITIES IF THEIR MEMBERS DO THE WORK THE PROGRAM HAS SPENT MORE THAN 9 BILLION AND HAS REFURBISHED MORE THAN 75000 SCHOOLS PAVED THOUSANDS OF MILES OF ROADS HELPED BRING ELECTRICITY AND DRINKING WATER TO MORE THAN 10 MILLION PEOPLE AND ASSISTED IN PROVIDING DRAINAGE SERVICES TO EIGHT MILLION BUT SOLIDARITY DIDN'T PROVIDE PAYING JOBS OR ANY OTHER WAY TO CLIMB OUT OF POVERTY THE MIDDLE CLASS WHICH NEEDS TO GROW IF MEXICO IS TO CONTINUE ITS ECONOMIC TURNAROUND HASN'T BEEN WITHOUT ITS PROBLEMS EITHER ALTHOUGH THERE AREN'T ANY GOOD NUMBERS ON THE GROWTH OF THE MIDDLE CLASS NORA LUSTIG A SENIOR FELLOW AT THE BROOKINGS INSTITUTION IN WASHINGTON DC SAYS THAT INFLATIONADJUSTED WAGES WHICH PROVIDE A GOOD MEASURE OF HOW THE SALARIED MIDDLE CLASS HAS DONE HAVE REBOUNDED 323 SINCE 1988 BUT THIS JUST GETS SALARIES BACK TO ABOUT WHERE THEY WERE IN 1983 BEFORE MEXICO'S ECONOMY COLLAPSED IN ADDITION A STUDY BY THE AUTONOMOUS NATIONAL UNIVERSITY OF MEXICO FOUND THAT 60 OF THE PEOPLE IN RELATIVELY WEALTHY MEXICO CITY STILL LIVE IN WHAT IT CALLED UNACCEPTABLE ECONOMIC CONDITIONS CRISTINA ESCOBAR MANAGER OF RESTAURANT MIRAVALLE IN MEXICO CITY SAYS THAT EVEN THOUGH THE DAYS OF WILD INFLATION ARE GONE THE COSTS OF RAISING HER TWO CHILDREN KEEP RISING FASTER THAN HER INCOME MAYBE FOR THE RICH COSTS HAVE FALLEN SHE SAYS BUT NOT FOR US IN THE MIDDLE CLASS THE RICH ARE THE CLEAR WINNERS OF THE PAST FEW YEARS BECAUSE THEY HAVE HAD THE MONEY TO BUY REAL ESTATE AND STOCKS WHICH HAVE BENEFITED SO MUCH FROM THE NEW OPTIMISM ABOUT MEXICO'S FUTURE THE MEXICAN STOCK MARKET FOR INSTANCE HAS INCREASED ITS VALUE BY 191 BILLION SINCE 1987 MEXICANS HOLD ABOUT THREEQUARTERS OF THE EQUITY SO THEY HAVE SEEN THE VALUE OF THEIR STOCK HOLDINGS RISE ABOUT 143 BILLION BUT AS OF THE END OF 1992 THE LAST TIME FIGURES WERE PUBLISHED LESS THAN 02 OF MEXICANS HAD BROKERAGE ACCOUNTS THAT MEANS THE HUGE INCREASE IN VALUE FOUND ITS WAY INTO THE HANDS OF A SMALL MINORITY SINCE MUTUAL FUNDS HOLD ONLY A SMALL PERCENTAGE OF STOCK AND PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS ARE ALMOST NONEXISTENT FUELED BY THE SURGE ON THE STOCK MARKET THE NUMBER OF MEXICAN BILLIONAIRES HAS RISEN TO 13 LAST YEAR FROM TWO IN 1991 ACCORDING TO FORBES MAGAZINE'S ANNUAL SURVEY THAT GIVES MEXICO MORE BILLIONAIRES THAN ANY COUNTRY OTHER THAN THE US JAPAN AND GERMANY THE GOODIES GOING TO THE RICH HAVEN'T ENDED EITHER RECENT LICENSES TO OPERATE IN THE LUCRATIVE BANKING MARKET HAVE BEEN GRANTED TO SOME WEALTHY POLITICALLY CONNECTED PEOPLE INCLUDING CARLOS SLIM WHO OWNS MUCH OF TELEFONOS DE MEXICO TELEVISA A NEARMONOPOLY IN TELEVISION BROADCASTING THAT STRONGLY SUPPORTS THE RULING PARTY WAS RECENTLY SOLD DOZENS MORE GOVERNMENT TELEVISION STATIONS UNDER A DEAL IN WHICH COMPETITORS COULDN'T BID THE SALINAS ECONOMIC REFORMS WERE DELIBERATELY DESIGNED TO BENEFIT BIG COMPANIES AND THEIR OWNERS WITH THE IDEA THAT MEXICO NEEDED HUGE STRONG COMPANIES IF IT WAS TO COMPETE WITH EFFICIENT GIANTS FROM THE US AND ELSEWHERE IN THE WORLD OF FREER TRADE THAT PRESIDENT SALINAS ENVISIONED IN THE WAKE OF CHIAPAS THOUGH MR COLOSIO SAYS THAT IF ELECTED PRESIDENT HE WILL FOCUS MORE ON SMALL BUSINESSES AND LESS ON THE COUNTRY'S GIANTS HE SAYS HE WILL ALSO FOCUS LESS ON THE NATIONAL LEVEL AND MORE ON REGIONAL DEVELOPMENT IN CHIAPAS FOR EXAMPLE SOLIDARITY TOLD HARDHIT COFFEE GROWERS THAT THERE WAS A NICHE MARKET PROVIDING HIGH PRICES FOR ORGANICALLY GROWN COFFEE THEN HELPED THEM HOOK UP WITH EXPORTERS HE SAYS SOLIDARITY WILL ALSO EMPHASIZE A PROGRAM TO HELP SMALL BUSINESSES FIND FINANCING SO THEY CAN CREATE JOBS HE SAYS IN ADDITION HE WILL EMPHASIZE ECONOMIC GROWTH MORE THAN THE SALINAS ADMINISTRATION DID TO TRY TO BENEFIT ALL MEXICANS THE ECONOMY WAS SUCH A WRECK WHEN PRESIDENT SALINAS TOOK OFFICE IN 1988 THAT HE HAD TO SHOW A BUDGET SURPLUS TO REGAIN CREDIBILITY WITH INTERNATIONAL INVESTORS AND HAD TO GENERALLY SQUEEZE THE ECONOMY TO CUT INFLATION MR COLOSIO SAYS THAT A BUDGET SURPLUS NO LONGER NEEDS TO BE THE GOAL ABOVE ALL OTHERS MR COLOSIO HAS OFFERED TO DEBATE THE OTHER PRESIDENTIAL CANDIDATES THE FIRST TIME ANY SENIOR PRI OFFICIAL HAS AGREED TO ANY KIND OF DEBATE HE SAYS HE WILL ALSO ADDRESS HIS CAMPAIGN MUCH MORE TO YOUNG PEOPLE AND TO WOMEN THAN ANY CANDIDATE HAS DONE BEFORE IF HE AND THE PARTY ARE REALLY SERIOUS ABOUT DEMOCRATIC REFORM THEN THERE IS OF COURSE NO LONGER ANY GUARANTEE THAT THE PRI CANDIDATE WILL WIN WHICH IS PART OF THE REASON THAT THIS ELECTION SEASON SEEMS LIKELY TO BE SO WILD THE CONCERNS ABOUT POVERTY RAISED BY CHIAPAS APPEAR TO HAVE UNDERMINED THE APPEAL OF THE TRADITIONAL OPPOSITION PARTY THE PAN THE MOST CONSERVATIVE OF THE MAJOR PARTIES ITS CANDIDATE DIEGO FERNANDEZ DE CEVALLOS RECENTLY WENT TO ONE OF THE PAN'S BIGGEST STRONGHOLDS CIUDAD JUAREZ WHICH HAS A PAN MAYOR IN A STATE WITH A PAN GOVERNOR AND ALMOST NO ONE TURNED OUT TO SEE HIM EVENTS IN CHIAPAS HAVE HOWEVER RESTORED LIFE TO THE FALTERING MR CARDENAS THE LEFTIST CANDIDATE WHO MANY FEEL WOULD HAVE WON THE 1988 ELECTION IF NOT FOR SUSPECTED FRAUD BY THE PRI CHIAPAS EVEN CREATES A WILD CARD WITHIN THE PRI BECAUSE PRESIDENT SALINAS GAVE THE POPULIST MR CAMACHO THE HIGHLY VISIBLE JOB OF TRYING TO MEDIATE A SOLUTION MEXICO HAS BEEN ABUZZ ABOUT THE POSSIBILITY THAT MR CAMACHO WILL PULL OFF A MIRACLE IN CHIAPAS THEN EITHER SUPPLANT MR COLOSIO AS THE PRI'S CANDIDATE OR BREAK OFF AND START HIS OWN PARTY MR CAMACHO DECLINES TO COMMENT ALTHOUGH MR COLOSIO STILL SEEMS SECURE MEXICANS ARE ASKING THEMSELVES IF THINGS ARE THIS UNSETTLED AT THE START OF THE ELECTION YEAR WHAT WILL THINGS BE LIKE BY THE TIME ELECTIONS ROLL AROUND IN AUGUST 9402070178 940207 DOFASCO TO SELL UNIT TO PUBLIC HAMILTON ONTARIO DOFASCO INC SAID IT PLANS TO MAKE A SECONDARY PUBLIC OFFERING IN CANADA OF ALL THE SHARES OF WHOLLY OWNED PRUDENTIAL STEEL LTD DOFASCO IS A HAMILTON STEELMAKER THAT HAS BEEN RESTRUCTURING ITS OPERATIONS TO CONCENTRATE ON FLATROLLED STEELS PRUDENTIAL SPECIALIZES IN TUBULAR PRODUCTS FOR THE OIL AND GAS INDUSTRY PRUDENTIAL IS BASED IN CALGARY ALBERTA AND EMPLOYS ABOUT 400 PEOPLE A DOFASCO SPOKESMAN SAID PRUDENTIAL IS PROFITABLE BUT HE DECLINED TO PROVIDE FURTHER DETAILS BEFORE A FINAL PROSPECTUS IS ISSUED 9402070177 940207 ITALY'S FOREIGNTRADE SURPLUS ROME ITALY'S FOREIGNTRADE SURPLUS WITH NONEUROPEAN UNION COUNTRIES WIDENED TO 4402 TRILLION LIRE 260 BILLION IN DECEMBER FROM 2150 TRILLION LIRE A YEAR EARLIER ACCORDING TO THE STATE STATISTICAL OFFICE ISTAT ISTAT SAID THAT FOR 1993 AS A WHOLE THE TRADE ACCOUNT WITH NONEU COUNTRIES SWUNG TO A SURPLUS OF 20351 TRILLION LIRE FROM A DEFICIT OF 2725 TRILLION LIRE THE YEAR EARLIER ISTAT NOTED THE RESULTS COULD BE ATTRIBUTED TO STRONG EXPORT GAINS FOR ALL SECTORS 9402070175 940207 LEISURE & ARTS ON SPORTS OWLS TAKE BONNIES BY FREDERICK C KLEIN PHILADELPHIA HIS TEMPLE UNIVERSITY BASKETBALL TEAM HAD JUST DEFEATED ST BONAVENTURE HERE ON SATURDAY 7352 AND JOHN CHANEY WAS TALKING ABOUT SPORTS AND LIFE WHEN I TAUGHT GYM CLASSES IN HIGH SCHOOL AND JUNIOR HIGH THE MOTTO WAS 'LEAVE 'EM LAUGHIN' AND PUFFIN' THAT WAY THEY'D BE EAGER TO GO BACK TO WORK THE NEXT TIME HE SAID DO YOU TRY TO LEAVE YOUR TEMPLE TEAMS THE SAME WAY SOMEONE ASKED NAH SAID CHANEY I JUST LEAVE 'EM PUFFIN' THEY'RE BEYOND THE LAFFIN' PART WHEN YOU ASK 61YEAROLD JOHN CHANEY A QUESTION YOU GET AN ANSWER IN A FORM IN WHICH THE PLAYERS COME AND GO AND THE COACHES ARE THE STARS FRONT AND CENTER ARE HIS NATURAL POSITIONS WHEN YOU ATTEND AN NCAA BASKETBALL TOURNAMENT YOU EXPECT HIS TEAMS TO BE THERE THEY'VE MADE THE BIG SHOW NINE TIMES IN HIS PREVIOUS 11 SEASONS AT TEMPLE THREE TIMES TO THE ROUNDOFEIGHT IN THE LAST SIX YEARS AND OFF ITS 162 WONLOST START THIS YEAR IS SURE TO MAKE IT 10 OF 12 AND WHEN A DISPUTE ROILS THE COLLEGEBASKETBALL WATERS AS THE STRUGGLE OVER NCAA DECISIONMAKING HAS THREATENED A BLACKCOACH'S BOYCOTT IN THIS ONE YOU CAN EXPECT TO HEAR FROM HIM AGAIN ON THIS LATE AFTERNOON STANDING IN FRONT OF THE REDANDWHITE T' BANNER THAT'S A BACKDROP FOR HIS POSTGAME PRESS CONFERENCES AT SNUG 3900 SEATS ONCAMPUS MCGONIGLE HALL HE'S HOLDING FORTH ON THE REASONS BEHIND THE STANCE FOR WHICH HE'S BECOME A POINT MAN EVERYONE PRESENT KNOWS WHERE HE'S COMING FROM HE'S BLACK RAISED IN CIRCUMSTANCES THAT MAKE TONYA HARDING'S LOOKED PRIVILEGED AND FOR HIM SPORTS WERE THE KEY TO FIRST EDUCATION AND THEN ADULT SUCCESS AMONG HIS PROFESSIONAL HONORS IS A 1979 STATE OF PENNSYLVANIA DISTINGUISHED FACULTY AWARD EARNED WHILE HE WAS AT CHEYNEY STATE UNIVERSITY IT'S NOT ABOUT CUTTING THAT 14TH MEN'S BASKETBALL SCHOLARSHIP THAT WAS NOT THE REASON THAT WAS JUST THE LAST STRAW SAYS THE MAN WHOSE SQUAD NUMBERS 10 SCHOLARSHIP ATHLETES ONE OF WHOM IS FROM HOLLAND IT'S ABOUT ACCESS OF COACHES TO KIDS THEY MIGHT HELP AND MINORITY PARTICIPATION IN EVERY PHASE OF COLLEGE ATHLETICS IT'S ABOUT GIVING THE PEOPLE WHO MAKE THE SYSTEM WORK A SAY IN HOW IT WORKS KIDS TODAY NEED DIRECTION AND INSPIRATION BUT NCAA RULES TIE UP THE COACHES THE VERY PEOPLE WHO COULD HELP GIVE IT TO THEM HE GOES ON I'D LIKE TO BE OUT IN THE HIGH SCHOOLS MORE TELLING THE KIDS HOW THINGS ARE BUT THE RECRUITING RULES WON'T LET ME OR TAKE WHAT THEY'RE DOING IN THE NAME OF GENDER EQUITY THEY'RE CUTTING BACK ON SCHOLARSHIPS IN MEN'S FOOTBALL BASKETBALL AND TRACK AND ADDING THEM IN WOMEN'S SPORTS LIKE BADMINTON CREW AND SYNCHRONIZED SWIMMING EVERYBODY KNOWS THAT SPORTS ARE CULTURAL AND THAT THE EFFECT OF THAT IS TO TAKE OPPORTUNITY AWAY FROM BLACK MEN AND GIVE IT TO WHITE WOMEN WHERE'S THE JUSTICE IN THAT IF WE HAD PROPER MINORITY REPRESENTATION IN THE NCAA YOU WOULDN'T SEE THAT SORT OF THING THEY TALK ABOUT RAISING ACADEMIC STANDARDS FOR ATHLETES BUT WHY SHOULD THE ELITE SCHOOLS MAKE THE RULES FOR PLACES LIKE TEMPLE AND WHY SHOULD BLACK PEOPLE HAVE TO APOLOGIZE FOR WANTING TO DEVELOP THE TALENTS WE HAVE IF YOU HAVE SUCCESS IN ONE AREA LIKE BASKETBALL YOU HAVE SOMETHING YOU CAN BUILD ON AND MAYBE TRANSFER TO OTHER AREAS TRANSFER THAT'S THE KEY YOU MAY START A TRIP HOPING TO GET TO NEW YORK BUT EVEN IF YOU ONLY MAKE IT TO NEWARK IT DOESN'T MEAN THE TRIP IS WASTED IT'S THE WORK YOU DO ALONG THE WAY THAT COUNTS WHEN IT COMES TO HIS CURRENT SQUAD OF COURSE CHANEY IS HOPING IT'LL MAKE IT ALL THE WAY TO CHARLOTTE NC FOR THIS YEAR'S FINAL FOUR AS USUAL HARD WORK WOULD BE ITS TICKET CHANEY'S TEAMS BEGIN THEIR TWOHOUR DAILY PRACTICES AT 530 AM THAT WAY THEY DON'T CONFLICT WITH CLASSES AND DISCOURAGE PLAYER NIGHT LIFE THE OWLS PLAY DEFENSE EARLY LATE AND INBETWEEN GOOD D' BEING THE PART OF BASKETBALL MOST ATTAINABLE THROUGH PURE EFFORT THEIR STYLE IS A ZONE PRESS THAT WHEN EXECUTED RIGHT CHOKES OFF FOES' CLOSEIN SHOTS AND HARASSES OUTSIDE ATTEMPTS AS WELL NOTHING THE OWLS DID ON SATURDAY APPRECIABLY LESSENED ANY OF THOSE DISTINCTIONS SHOOTING 625 IN THE FIRST HALF THEY DASHED TO A 4125 LEAD OVER THE OUTMANNED BONNIES WHICH THEY WIDENED TO 4927 IN THE OPENING MINUTES OF THE SECOND HALF THE VISITORS RALLIED THEREAFTER TO CUT THEIR DEFICIT TO 12 POINTS BUT THE OWLS AWOKE TO WIN GOING AWAY FORWARD EDDIE JONES A TRULY TALENTED OFFENSIVE PLAYER SCORED 21 POINTS ON SEVEN OF 11 SHOOTING FOR THE WINNERS GUARD AARON MCKIE HAD 22 RICK BRUNSON THE POINT GUARD HUSBANDED THE BALL WELL CHANEY TYPICALLY SEES HIS COACHING GLASS AS HALFEMPTY AND HIS POSTGAME COMMENTS REFLECTED THAT HE FRETTED ABOUT HIS TEAM'S PERSISTENTLY MEDIOCRE FREETHROW SHOOTING 64 ALLOWED THAT HE WISHED HE COULD USE MORE THAN THE SIX PLAYERS WHO'VE SEEN SIGNIFICANT SERVICE THIS CAMPAIGN BUT SAID THE OTHER TEAMS WON'T LET HIM AND BEMOANED THE BALLHANDLING SHORTCOMINGS OF WILLIAM CUNNINGHAM AND DERRICK BATTIE HIS PRIMARY BIG MEN THE MONEY'S IN THE POT NOW AND WE'D LIKE TO FINISH STRONG BUT THREE DEUCES WON'T WIN IT EVEN THREE TREYS CONCLUDED CHANEY BUT HE'LL DO WHAT HE CAN TO GET HIS BOYS THE BEST DEAL 9402070174 940207 INTERNATIONAL CHAIRMAN TO LEAVE BRITISH AEROSPACE NEWS REPORTS SAY A WALL STREET JOURNAL NEWS ROUNDUP JOHN CAHILL CHAIRMAN OF BRITISH AEROSPACE PLC IS TO RESIGN IN THE WAKE OF A BOARDROOM TUSSLE ACCORDING TO VARIOUS NEWSPAPER REPORTS IN THE UNITED KINGDOM YESTERDAY ACCORDING TO THE REPORTS MR CAHILL'S EXPECTED DEPARTURE COMES AS A RESULT OF CLASHES WITH SOME DIRECTORS NOTABLY CHIEF EXECUTIVE RICHARD EVANS AND FINANCE DIRECTOR RICHARD LAPTHORNE THE FAILURE OF BRITISH AEROSPACE TO SUCCESSFULLY COMPLETE A LONGSTANDING NEGOTIATION WITH THE TAIWANESE GOVERNMENT ON A JOINT VENTURE TO BUILD JETS HAD LED TO SPECULATION A FEW MONTHS AGO THAT MR CAHILL WOULD RESIGN HE WAS CLOSELY INVOLVED WITH THAT PARTICULAR PROJECT NEWS REPORTS SAY MR CAHILL'S RESIGNATION COULD COME AS EARLY AS TODAY JUST A WEEK AFTER BRITISH AEROSPACE GRABBED HEADLINES BY ANNOUNCING THE 800 MILLION 12 BILLION SALE OF ITS 80 STAKE IN ROVER HOLDINGS PLC TO GERMANY'S BAYERISCHE MOTOREN WERKE AG OFFICIALS AT THE COMPANY COULDN'T BE REACHED YESTERDAY MEANWHILE THE PRESIDENT OF HONDA MOTOR CO WHICH OWNS THE REMAINING 20 OF ROVER INDICATED THAT HIS COMPANY MAY EVENTUALLY SEVER ITS TIES TO ROVER IF BMW GOES AHEAD WITH ITS PLANNED PURCHASE THE JAPANESE COMPANY'S HELP HAS BEEN KEY TO ROVER'S TRANSFORMATION IN THE PAST FEW YEARS INTO ONE OF THE FASTESTGROWING CAR MAKERS IN EUROPE IN A INTERVIEW WITH THE BRITISH BROADCASTING CORP NOBUHIKO KAWAMOTO SAID HE PREFERRED TO SEE ROVER REMAIN A BRITISHCONTROLLED COMPANY BUT HE SAID IF HONDA'S CONNECTION TO ROVER BECOMES ONLY A JOINT VENTURE WITH BMW AND ROVER CEASES TO BE A BRITISH COMPANY OUR COOPERATIVE RELATIONSHIP WITH ROVER WILL NOT LAST VERY LONG A BRITISH AEROSPACE SPOKESMAN LAST NIGHT DECLINED TO COMMENT ON MR KAWAMOTO'S INTERVIEW CALLING IT A MATTER FOR BMW AND FOR HONDA SEPARATELY BRITISH AEROSPACE SAID IT WILL TAKE A 250 MILLION PROVISION TO CLEAN UP THE BALANCE SHEET AT ITS TURBOPROP DIVISION THE PROVISION TO BE TAKEN ON THE 1993 BOOKS WILL BRING THE ACCOUNTING TREATMENT OF PRE1993 SALES IN LINE WITH ITS CURRENT POLICY OF TAKING A PROVISION AGAINST ALL REGIONAL AIRCRAFT SALES THE COMPANY SAID ANALYSTS SAID THE PROVISION MAY BE A PRELUDE TO THE SALE OR MERGER OF THE TURBOPROP UNIT 9402070173 940207 WHO'S NEWS SOUTHWEST SECURITIES GROUP INC SOUTHWEST SECURITIES GROUP INC DALLAS JAN COLLMER FOUNDER AND PRESIDENT OF COLLMER SEMICONDUCTOR INC WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN 9402070172 940207 WHO'S NEWS TEMPLEINLAND INC TEMPLEINLAND INC DIBOLL TEXAS PAUL M ANDERSON AND CHARLOTTE TEMPLE WERE ELECTED TO THE BOARD OF THIS WOODPRODUCTS AND FINANCIALSERVICES CONCERN ONE OF THE DIRECTORS TOOK THE SEAT OF ARTHUR TEMPLE 73 YEARS OLD WHO HAD RETAINED A POSITION ON THE BOARD AFTER STEPPING DOWN AS CHAIRMAN THE OTHER DIRECTOR WAS NAMED TO A NEW SEAT EXPANDING THE BOARD TO 10 MEMBERS MR ANDERSON 49 IS PRESIDENT OF PANHANDLE EASTERN CORP MS TEMPLE 53 IS A PRIVATE INVESTOR 9402070171 940207 WHO'S NEWS OLSTEN CORP OLSTEN CORP WESTBURY NY MARTIN B ROSCH 54 YEARS OLD WAS NAMED VICE PRESIDENT INFORMATION SERVICES OF THIS PERSONNEL AND HEALTHCARE SERVICES PROVIDER MR ROSCH SUCCEEDS JOSEPH LEANZA WHO LEFT THE COMPANY IN DECEMBER MR ROSCH MOST RECENTLY WAS A VICE PRESIDENT OF OGDEN SERVICES CORP IN NEW YORK 9402070170 940207 WHO'S NEWS ACUSON CORP ACUSON CORP MOUNTAIN VIEW CALIF ROBERT J GALLAGHER 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER OF THIS MAKER OF MEDICAL DIAGNOSTIC SYSTEMS MR GALLAGHER RETAINS HIS TITLE AS EXECUTIVE VICE PRESIDENT STEPHEN T JOHNSON 50 SUCCEEDS MR GALLAGHER AS CHIEF FINANCIAL OFFICER AND REMAINS CORPORATE TREASURER 9402070167 940207 WHO'S NEWS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC NEW ORLEANS L RONALD FORMAN WAS ELECTED A DIRECTOR OF THIS SPECIALTY RETAILER EXPANDING THE BOARD TO EIGHT MEMBERS MR FORMAN 46 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF AUDUBON INSTITUTE INC IN NEW ORLEANS 9402070166 940207 WHO'S NEWS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO GEORGE B AMOSS 52 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS DIGITALTELECOMMUNICATIONS SWITCHING SYSTEMS AND SERVICES SUPPLIER HE SUCCEEDS FRANK A DUNN 40 WHO WAS NAMED VICE PRESIDENT FINANCE AT THE NORTEL NORTH AMERICA UNIT THE POSITION IS NEW MR AMOSS HAS BEEN VICE PRESIDENT BUSINESS ANALYSIS AND PLANNING ALSO STEPHEN A HOLINSKI 47 WAS NAMED VICE PRESIDENT AND TREASURER OF THE PARENT SUCCEEDING JAMES E WILKINSON 46 WHO RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR HOLINSKI IS VICE PRESIDENT FINANCE PRODUCTS ALL THE POSITIONS ARE EFFECTIVE FEB 9402070165 940207 WHO'S NEWS QUANTUM RESTAURANT GROUP INC QUANTUM RESTAURANT GROUP INC ROSLYN HEIGHTS NY WILLIAM L HYDE 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS RESTAURANT CHAIN A NEW POSITION MR HYDE WAS FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF FURR'S/BISHOP'S INC A CAFETERIA OPERATOR IN LUBBOCK TEXAS 9402070163 940207 WHO'S NEWS FOXMEYER CORP FOXMEYER CORP DALLAS PETER B MCKEE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS WHOLESALE DRUG DISTRIBUTOR MR MCKEE 55 YEARS OLD WAS A PARTNER AT INTERSOLVE GROUP INC A DALLAS MANAGEMENT CONSULTING FIRM AT FOXMEYER HE SUCCEEDS DENNIS LETHAM WHO RESIGNED IN JULY FOXMEYER ALSO NAMED WILLIAM L ESTES SENIOR VICE PRESIDENT OPERATIONS MR ESTES 46 WAS CHIEF OPERATING OFFICER FOR THE US UNIT OF BODY SHOP INTERNATIONAL PLC FOXMEYER DIDN'T DISCLOSE WHOM MR ESTES SUCCEEDED 9402070161 940207 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ JAMES G CULLEN 52 YEARS OLD WAS NAMED A DIRECTOR OF THIS INSURER BY SUPREME COURT OF NEW JERSEY CHIEF JUSTICE ROBERT N WILENTZ UNDER NEW JERSEY LAW THE CHIEF JUSTICE IS AUTHORIZED TO APPOINT SIX PUBLIC DIRECTORS TO THE 24MEMBER BOARD FOR A SIXYEAR TERM MR CULLEN PRESIDENT OF BELL ATLANTIC CORP SUCCEEDS THOMAS S JOHNSON WHO HAD TO RESIGN WHEN HE BECAME CHIEF EXECUTIVE OFFICER OF GREEN POINT SAVINGS BANK 9402070160 940207 WHO'S NEWS BOISE CASCADE CORP BOISE CASCADE CORP BOISE IDAHO THEODORE CRUMLEY WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS FOREST PRODUCTS COMPANY MR CRUMLEY 48 YEARS OLD SUCCEEDS REX L DORMAN WHO IS RETIRING JUNE 1 TOM E CARLILE DIRECTOR OF FINANCE AND PLANNING FOR THE COMPANY'S WHITE PAPER DIVISION WAS NAMED BOISE CASCADE'S VICE PRESIDENT AND CONTROLLER POSITIONS FORMERLY HELD BY MR CRUMLEY 9402070159 940207 WHO'S NEWS SCIMED LIFE SYSTEMS INC SCIMED LIFE SYSTEMS INC MINNEAPOLIS J DANIEL COLE 47YEAROLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF DISPOSABLE MEDICAL DEVICES WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN 9402070157 940207 SANTANDER REPORTS 12 RISE IN PROFIT STUDIES BID FOR TROUBLED RIVAL BANESTO BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL MADRID BANCO SANTANDER SA SAID GROUP PROFIT INCREASED 12 IN 1993 AND SAID IT IS STUDYING A POSSIBLE BID FOR CONTROL OF ITS AILING RIVAL BANCO ESPANOL DE CREDITO SA HOWEVER SANTANDER CHAIRMAN EMILIO BOTIN SAID THE BANK WOULD GO AHEAD WITH A BID ONLY IF IT IS SURE SUCH AN ACQUISITION WOULD BE PROFITABLE AND IN THE INTEREST OF ITS SHAREHOLDERS THIS IS AN OPPORTUNITY NOT AN OBLIGATION HE SAID IN AN INTERVIEW EVERYTHING WILL DEPEND ON THE PRICE MR BOTIN'S REMARKS REITERATED PUBLICLY OVER THE WEEKEND AT SANTANDER'S ANNUAL SHAREHOLDERS' MEETING MARKED THE OPENING SALVO IN A BATTLE PITCHING SANTANDER AGAINST OTHER SPANISH BANKS UNDER A SALVAGE PLAN BACKED BY SPAIN'S CENTRAL BANK AND DUE TO BE SUBMITTED TO NEXT MONTH TO BANESTO SHAREHOLDERS FOR APPROVAL SPANISH BANKS ARE TO BE INVITED LATER THIS YEAR TO MAKE BIDS FOR CONTROL OF THE TROUBLED BANK THE BANK OF SPAIN DISMISSED BANESTO'S FORMER CHAIRMAN MARIO CONDE AND HIS BOARD ON DEC 28 1993 FOLLOWING THE DISCOVERY OF A FINANCIAL SHORTFALL NOW ESTIMATED AT 605 BILLION PESETAS 428 BILLION SANTANDER IS WIDELY REGARDED AS FRONTRUNNER TO TAKE OVER BANESTO DUE TO ITS FINANCIAL AND COMMERCIAL SUCCESS OVER THE PAST FEW YEARS BUT THE ACQUISITION OF WHAT WAS ONCE SPAIN'S LARGEST AND MOST PRESTIGIOUS BANK WOULD MAKE SANTANDER AN EVEN MORE POWERFUL COMPETITOR FOR OTHER SPANISH BANKS SEVERAL INCLUDING BANCO BILBAO VIZCAYA SA ARE STUDYING RIVAL BIDS FRESH EVIDENCE OF SANTANDER'S FINANCIAL SUCCESS CAME OVER THE WEEKEND WITH NEWS OF ITS 1993 RESULTS IN A YEAR MARRED FOR SPANISH BANKS GENERALLY BY RISING BAD DEBTS AND NARROWING MARGINS SANTANDER INCREASED NET INCOME AFTER MINORITY INTERESTS TO 664 BILLION PESETAS FROM 592 BILLION PESETAS FOLLOWING A 1 DECLINE IN SPAIN'S GROSS NATIONAL PRODUCT IN 1993 SANTANDER OFFICIALS SAID THEY DON'T EXPECT A SIGNIFICANT RECOVERY THIS YEAR FOR THE SPANISH ECONOMY HOWEVER MR BOTIN EXPRESSED CONFIDENCE THAT SANTANDER WOULD HAVE FURTHER EARNINGS GROWTH THIS YEAR DUE TO ITS INTERNATIONAL OPERATIONS AND ITS GROWING INVESTMENTBANKING BUSINESS IN 1993 42 OF THE BANK'S EARNINGS CAME FROM INTERESTS OUTSIDE SPAIN INCLUDING ITS THRIVING COMMERCIAL AND INVESTMENTBANKING OPERATION IN CHILE AND ITS STAKES IN ROYAL BANK OF SCOTLAND AND USBASED FIRST FIDELITY BANCORP BY 1995 MR BOTIN SAID THE BANK AIMS TO INCREASE THE PROPORTION TO 50 NET INTEREST INCOME IN 1993 ROSE 19 TO 243 BILLION PESETAS WHILE INCOME FROM FEES AND COMMISSIONS ROSE 93 TO 755 BILLION PESETAS PROVISIONS ROSE 162 TO 86 BILLION PESETAS BUT THAT WAS MORE THAN OFFSET BY A 323 INCREASE IN INCOME FROM SECURITIES AND FOREIGNEXCHANGE TRADING ON THE BANK'S OWN ACCOUNT TO 90 BILLION PESETAS THE BANK SAID IT WOULD PAY A DIVIDEND FOR THE YEAR OF 292 PESETAS 207 A SHARE UP 12 FROM 1992 TOTAL ASSETS ROSE 48 IN 1993 TO 104 TRILLION PESETAS 7355 BILLION PARTLY REFLECTING THE EFFECT OF THREE DEVALUATIONS OF THE PESETA THE BANK'S CAPITALADEQUACY RATIOS FELL TO 125 FROM 1265 BUT WERE STILL WELL ABOVE THE INTERNATIONALLY ACCEPTED 8 MINIMUM MR BOTIN SAID SANTANDER IS LIKELY TO BEGIN A FUNDRAISING EXERCISE SHORTLY TO BOLSTER ITS CAPITALADEQUACY RATIOS IF CONFIRMED SUCH A MOVE WOULD LIKELY MAKE SANTANDER THE FIRST SPANISH BANK TO SEEK FUNDING FROM INTERNATIONAL FINANCIAL MARKETS SINCE THE CRISIS AT BANESTO WHICH HAS FOCUSED AN UNFLATTERING SPOTLIGHT ON SOME ASPECTS OF SPAIN'S BUSINESS ENVIRONMENT MEANWHILE MR BOTIN MADE CLEAR THAT SANTANDER ISN'T INTERESTED IN BANESTO AT ANY PRICE AROUND 1000 OF BANESTO'S 2300 BRANCHES OVERLAP WITH SANTANDER'S 1350BRANCH NETWORK AND BANESTO IS UNLIKELY TO BE IN A POSITION TO PAY A DIVIDEND BEFORE 1996 AS A RESULT THOUGH POTENTIALLY ATTRACTIVE BANESTO ISN'T INDISPENSIBLE FOR SANTANDER'S FUTURE SUCCESS MR BOTIN SAID 9402070156 940207 PANEL ATTEMPTS TO STANDARDIZE EUROPE FUND DATA BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN VENTURECAPITAL INDUSTRY IS TRYING TO MAKE LIFE EASIER FOR INVESTORS FUNDS IN DIFFERENT EUROPEAN COUNTRIES CURRENTLY FOLLOW WIDELY VARYING ACCOUNTING RULES MAKING IT TOUGH TO COMPARE FUND MANAGERS' PERFORMANCES SUCH DIFFERENCES ARE BELIEVED TO BE ONE OF THE MAIN OBSTACLES STYMIEING THE DEVELOPMENT OF VENTURE CAPITAL IN EUROPE THE BRUSSELSBASED EUROPEAN VENTURE CAPITAL ASSOCIATION RECENTLY PRODUCED LONGAWAITED GUIDELINES FOR MEASURING THE PERFORMANCE OF FUNDS THE GUIDELINES WOULD OBLIGE MANAGERS TO MEASURE THEIR FUNDS' PERFORMANCE IN A SIMILAR FASHION AND REPORT RESULTS TO INVESTORS ON A REGULAR BASIS THAT SHOULD ALLOW AN INVESTOR A PENSION FUND FOR EXAMPLE TO TRACK AND COMPARE ITS VARIOUS INVESTMENTS THERE'S A GREAT NEED FOR PERFORMANCE DATA IN EUROPE SAYS SUSAN LLOYD DIRECTOR OF INVESTOR RELATIONS FOR SCHRODER VENTURES A GLOBAL VENTURECAPITAL NETWORK AFFILIATED WITH SCHRODERS PLC US INVESTORS IN PARTICULAR ARE USED TO HAVING INDUSTRY STATISTICS THEY WANT SOME HARD DATA ON HOW FUNDS HAVE PERFORMED COMMON PRINCIPLES SHOULD HELP IN THE EFFORT TO DETERMINE EUROPEAN FUND MANAGERS' SKILL AT PICKING INVESTMENT OPPORTUNITIES IN ADDITION ONCE THE INVESTMENTS ARE REALIZED AND THE CASH PAID BACK TO THE INVESTORS THEY WOULD BE ABLE TO COMPARE THE FEES AND COSTS CHARGED BY FUND MANAGERS THE ASSOCIATION HOPES TO HAVE THE PROPOSED GUIDELINES WHICH ARE THE RESULT OF MONTHS OF PAINSTAKING WORK IN EFFECT BY NEXT YEAR THAT MAY PROVE A BIT OPTIMISTIC SAY INDUSTRY OFFICIALS WHO WORRY THAT IRONING OUT EUROPE'S MAZE OF DIFFERENT ACCOUNTING AND TAX RULES IS LIKELY TO BE AN UPHILL STRUGGLE THE COMMON PERFORMANCE PRINCIPLES ARE ONLY A FIRST STEP HOWEVER BY PROPOSING THE GUIDELINES THE ASSOCIATION HAS A FAR MORE AMBITIOUS GOAL IN MIND THE PUBLICATION OF EUROPEWIDE STATISTICS ON VENTURECAPITAL FUNDS' PERFORMANCES SUCH INDUSTRYWIDE DATA ARE READILY AVAILABLE IN THE US IN EUROPE SUCH FIGURES DON'T YET EXIST EVEN AT THE NATIONAL LEVEL BUT THE VENTURECAPITAL INDUSTRY IN THE UK FRANCE AND THE NETHERLANDS HAVE STARTED STUDIES AND A FEW PILOT PROJECTS TO MEET THAT OBJECTIVE IT'S A HUGE TASK SAYS MS LLOYD OF SCHRODER VENTURES 9402070155 940207 WOLOHAN LUMBER SALES UP SAGINAW MICH WOLOHAN LUMBER CO A LUMBER AND BUILDING MATERIALS RETAIL CHAIN SAID ITS SALES FOR JANUARY INCREASED TO 223 MILLION UP 65 FROM 209 MILLION A YEAR EARLIER SALES FOR STORES OPEN AT LEAST A YEAR ROSE 33 9402070154 940207 POLITICS & POLICY JUSTICE OFFICIAL OBJECTED TO INVOLVEMENT OF WHITE HOUSE IN FOSTER INVESTIGATION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEPUTY ATTORNEY GENERAL PHILIP HEYMANN OBJECTED TO HAVING WHITE HOUSE LAWYERS SIT IN ON STAFF INTERVIEWS BY JUSTICE DEPARTMENT INVESTIGATORS FOLLOWING VINCENT FOSTER'S SUICIDE IN THE DAYS AFTER MR FOSTER'S DEATH MR HEYMANN COMPLAINED TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM ABOUT THE LAWYERS' INVOLVEMENT IN THE INTERVIEWS WITH WHITE HOUSE STAFFERS MR NUSSBAUM WHO HAS STEADFASTLY MAINTAINED THAT HE DID THINGS PROPERLY AND ETHICALLY DECLINED TO COMMENT THE FEDERAL BUREAU OF INVESTIGATION WAS PROBING ALLEGATIONS FOUND IN A NOTE WRITTEN BY MR FOSTER THAT THE FBI HAD LIED TO THE ATTORNEY GENERAL IN ITS REPORT ABOUT ALLEGED IRREGULARITIES IN THE WHITE HOUSE TRAVEL OFFICE THE NOTE WAS FOUND AFTER THE JULY 20 DEATH OF MR FOSTER WHO WAS MR NUSSBAUM'S DEPUTY AND THE PERSONAL LAWYER OF PRESIDENT CLINTON AND HILLARY RODHAM CLINTON THE OBJECTIONS OF MR HEYMANN INDICATE HOW DISSATISFIED SOME HIGHLEVEL JUSTICE DEPARTMENT OFFICIALS WERE WITH THE ACTIONS OF TOP WHITE HOUSE AIDES REGARDING THE FOSTER INVESTIGATION MR HEYMANN RECENTLY ANNOUNCED HE IS LEAVING HIS JOB BUT WHITE HOUSE AND JUSTICE DEPARTMENT OFFICIALS SAID HIS DEPARTURE WASN'T DIRECTLY LINKED TO THIS INVESTIGATION INTERVIEWS WITH CLINTON ADMINISTRATION AND LAW ENFORCEMENT OFFICIALS FAMILIAR WITH A US PARK POLICE REPORT ON MR FOSTER'S DEATH SAY IT CHARGES THAT THE INVOLVEMENT OF WHITE HOUSE AIDES DURING THE SUICIDE PROBE MAY HAVE INTERFERED WITH THE INVESTIGATION THE PARK POLICE WAS THE LEAD AGENCY ON THE SUICIDE BECAUSE IT OCCURRED IN A FEDERAL PARK IN SUBURBAN VIRGINIA SINCE MR FOSTER'S DEATH IT HAS BEEN REVEALED THAT DOCUMENTS CONCERNING THE CLINTONS' INVESTMENT IN THE WHITEWATER DEVELOPMENT CORP IN ARKANSAS WERE AMONG PAPERS TAKEN FROM HIS OFFICE AND TURNED OVER TO A PRIVATE LAWYER FOR THE CLINTONS AN INDEPENDENT COUNSEL IS PROBING WHITEWATERRELATED MATTERS AND THOSE PAPERS HAVE SINCE BEEN TURNED OVER TO THE JUSTICE DEPARTMENT DAVID MARGOLIS ONE OF MR HEYMANN'S TOP ASSISTANTS WAS PRESENT AS WHITE HOUSE LAWYERS SAT IN ON THE INTERVIEWS ACCORDING TO LAW ENFORCEMENT OFFICIALS DURING THE INTERVIEWING HE COMPLAINED ABOUT THE LAWYERS' PRESENCE TO MR HEYMANN WHO THEN ACCORDING TO ONE OFFICIAL RAISED HELL WITH MR NUSSBAUM THOUGH MR NUSSBAUM BELIEVED WHITE HOUSE LAWYERS COULD APPROPRIATELY SIT IN HE DISCUSSED THE QUESTION WITH MR HEYMANN BEFORE ULTIMATELY AGREEING TO REMOVE WHITE HOUSE PEOPLE FROM SUBSEQUENT INTERVIEWS THE WHITE HOUSE STAFFERS WHO WERE INTERVIEWED WERE ALLOWED PRIVATE LAWYERS IF THEY CHOSE TO HAVE THEM ACCORDING TO WHITE HOUSE AIDES SPEAKING GENERALLY SAID LLOYD CUTLER WHO WAS WHITE HOUSE COUNSEL TO PRESIDENT CARTER IT IS QUITE NORMAL FOR THE LAWYERS FOR AN AGENCY TO SIT IN ON INTERVIEWS OF AGENCY PERSONNEL BY LAW ENFORCEMENT OFFICIALS UNLESS IT IS A CRIMINAL INVESTIGATION A POLICE OFFICIAL SAID HIS AGENCY ALSO WAS ANNOYED WITH THE INVOLVEMENT OF WHITE HOUSE AIDES DURING ITS PROBE OF THE SUICIDE WE HAVE SAID PUBLICLY THAT WE WERE UNHAPPY WITH THE TYPE OF COOPERATION WE GOT FROM MR NUSSBAUM AND OTHERS IN HIS OFFICE SAID MAJOR ROBERT HINES THE US PARK POLICE SPOKESMAN OUR INVESTIGATORS WENT OVER TO THE WHITE HOUSE THE DAY AFTER THE SUICIDE BUT DIDN'T GET INTO VINCE'S OFFICE SAID MR HINES THEY SAT AND WAITED WE WERE INFORMED THAT EVERYTHING WOULD BE COORDINATED BY THE JUSTICE DEPARTMENT WE WERE WAITING FOR THE JUSTICE DEPARTMENT REPRESENTATIVE MR MARGOLIS HE WAS IN CHARGE HE DIDN'T SHOW UP UNTIL THE SECOND DAY JULY 22 THE PARK POLICE INVESTIGATORS HE SAID DIDN'T LIKE BEING PUT ON HOLD FOR A FULL DAY AND THEN BEING DENIED A CHANCE TO REVIEW ANY OF THE PAPERS AND DOCUMENTS IN MR FOSTER'S OFFICE INSTEAD THEY BASICALLY SAT AND WATCHED MR NUSSBAUM AND HIS AIDES SCREEN AND SORT THE PAPERS BY CATEGORY MR NUSSBAUM INSISTED ON SORTING WHAT HE CLAIMED WAS EXECUTIVE PRIVILEGE AND WHAT WASN'T SAID ONE ADMINISTRATION OFFICIAL WE DIDN'T MIND THEM SCREENING THEM MR HINES SAID WE WOULD HAVE LIKED TO HAVE SEEN THEM TOO IT WAS NOT NORMAL HOW THAT DRILL IN THAT ROOM WENT AND IT WASN'T HOW WE EXPECTED IT TO GO MR HINES ADDED HAD THIS BEEN A MURDER I DON'T KNOW WHAT WE WOULD HAVE DONE IF WE RAN INTO THAT KIND OF ROADBLOCK BUT WE WERE PRETTY SURE WE KNEW WHAT WE WERE DEALING WITH A SUICIDE THE WHITE HOUSE SHOWS NO INCLINATION TOWARD DISCIPLINING OR REPRIMANDING MR NUSSBAUM WHAT SHOULD HAVE BEEN DONE WAS DONE A TOP WHITE HOUSE AIDE SAID ANY DEALINGS WITH DOCUMENTS AND SUBSEQUENT INVESTIGATIONS WERE DONE PROPERLY THE AIDE ADDED SEPARATELY THE WHITE HOUSE HAS TOLD THE PARK POLICE THAT IT COULD REFUSE TO DISCLOSE AT LEAST PART OF MR FOSTER'S OFFICE TELEPHONE LOGS IN RESPONSE TO A QUERY FROM THE PARK POLICE THE WHITE HOUSE SAID THE PARK POLICE COULD CLAIM A VARIETY OF PRIVILEGES INCLUDING PRIVACY TO DECLINE TO RELEASE AT LEAST PART OF THE LOGS IN RESPONSE TO A FREEDOM OF INFORMATION ACT REQUEST EXACTLY WHAT WILL BE DISCLOSED HAS SINCE BEEN THROWN INTO QUESTION WITH THE APPOINTMENT OF THE INDEPENDENT COUNSEL 9402070153 940207 MERRILL LYNCH BARRED BY MASSACHUSETTS FROM LEAD BOND UNDERWRITER'S ROLE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE MASSACHUSETTS TREASURER'S OFFICE BARRED MERRILL LYNCH & CO FROM A LEAD UNDERWRITER'S ROLE IN FORTHCOMING BOND SALES BY THE STATE CITING THE UNRESOLVED CONTROVERSY FOLLOWING ALLEGATIONS OF IMPROPRIETY BY THE STATE INSPECTOR GENERAL'S OFFICE MERRILL WAS AMONG FIVE FIRMS SELECTED LAST WEEK AS PART OF A SENIOR MANAGERS' GROUP TO HANDLE BOND ISSUES THE OTHERS WERE CS FIRST BOSTON CORP GOLDMAN SACHS & CO MORGAN STANLEY & CO AND PAINEWEBBER INC GOLDMAN SACHS WAS NAMED LEAD UNDERWRITER AS REPORTED MERRILL'S DEALINGS WITH MASSACHUSETTS THE DISTRICT OF COLUMBIA AND OTHER MUNICIPAL ISSUERS ARE UNDER INVESTIGATION BY FEDERAL AND STATE OFFICIALS WHO ARE EXAMINING MERRILL'S TIES TO MARK S FERBER THE FORMER HEAD OF LAZARD FRERES & CO'S BOSTON OFFICE IN ADDITION MASSACHUSETTS INSPECTOR GENERAL ROBERT CERASOLI HAS ALLEGED THAT MR FERBER AND LAZARD HAD AN UNDISCLOSED FEESPLITTING CONTRACT WITH MERRILL AT A TIME WHEN HE WAS ADVISING THE STATE WATER RESOURCES AUTHORITY ON WHICH FIRMS TO SELECT AS UNDERWRITERS MERRILL WAS DESIGNATED AS LEAD UNDERWRITER FOR SEVERAL OF THE AUTHORITY'S BOND OFFERINGS BEFORE MR CERASOLI'S FINDINGS MR CERASOLI ALSO HAS ALLEGED THAT MERRILL RECEIVED INFORMATION ON THE WATER AUTHORITY FROM MR FERBER THAT WAS SUPPOSED TO BE CONFIDENTIAL MR FERBER HAS DENIED THE INSPECTOR GENERAL'S ASSERTIONS JAMES WIGGINS A MERRILL SPOKESMAN SAID THE FIRM ABSOLUTELY AND CATEGORICALLY STATES THAT IT IS FALSE THAT MERRILL GOT ANY INFORMATION THAT WASN'T ALSO GIVEN TO ALL OTHER FIRMS HE ALSO SAID THE INSPECTOR GENERAL MISCHARACTERIZED THE NATURE OF THE CONTRACT WE HAD WITH LAZARD AND HAS NEVER GIVEN MERRILL A CHANCE TO RESPOND TO HIS FINDINGS HE ADDED THAT MERRILL IS PLEASED TO SERVE AS A SENIOR MANAGER IN THE COMMONWEALTH'S UPCOMING BOND OFFERING AND WE LOOK FORWARD TO RESOLVING ANY OUTSTANDING ISSUES WITH THE REGULATORS EXPLAINING ITS DECISION TO LIMIT MERRILL'S PARTICIPATION THE MASSACHUSETTS TREASURER SAID THAT WHILE IT IS NOT THE ROLE OF THE TREASURER'S OFFICE TO DETERMINE LEGAL LIABILITY THE OFFICE FEELS DUTY BOUND TO EXCLUDE ANY FIRM WHICH MIGHT RAISE PUBLIC CONCERN OR LOWER PUBLIC CONFIDENCE THROUGH ITS PERFORMANCE OF A LEAD ROLE THE TREASURER'S OFFICE ADDED THAT WHILE THIS DECISION ENTAILS THE RISK OF TREATING THAT FIRM UNFAIRLY AND OF LOSING ITS SUPERIOR CAPABILITIES UNDER THE CURRENT CIRCUMSTANCES THESE CONCERNS ARE OUTWEIGHED BY THE PUBLIC INTEREST THE FIRST TRANSACTION TO BE HANDLED BY THE NEW GROUP IS A 500 MILLION REFUNDING TRANSACTION THE TREASURER'S OFFICE SAID 9402070152 940207 PHYSICIANS HEALTH EXPANDS TRUMBULL CONN PHYSICIANS HEALTH SERVICES INC SAID ITS PHYSICIANS HEALTH SERVICES OF NEW YORK INC UNIT RECEIVED NEW YORK STATE INSURANCE DEPARTMENT APPROVAL TO EXPAND ITS SERVICE AREA TO INCLUDE ROCKLAND ORANGE AND DUTCHESS COUNTIES THE MANAGEDCARE HEALTH COMPANY SAID THE EXPANSION ADDS SIX HOSPITALS AND 250 DOCTORS TO ITS NETWORK 9402070151 940207 AUTO MAKERS LIFT ESTIMATES FOR OUTPUT IN QUARTER SHOWING OPTIMISM ON SALES BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US AUTO MAKERS HAVE RAISED THEIR ALREADY OPTIMISTIC PLANS FOR FIRSTQUARTER PRODUCTION AS FORD MOTOR CO AND CHRYSLER CORP BEGIN BUILDING NEW MODELS THE AUTO MAKERS NOW EXPECT TO BUILD 184 MILLION PASSENGER CARS UP 32 FROM THE 178 MILLION CARS PLANNED JUST A MONTH AGO PLANNED OUTPUT FOR MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS REMAINS ROUGHLY AT 143 MILLION VEHICLES ALTOGETHER COMPANIES BUILDING VEHICLES IN THE US PLAN TO PRODUCE 3275129 VEHICLES IN THE FIRST QUARTER UP 20 FROM 2726379 A YEAR EARLIER INDUSTRY EXPERTS SAY AUTO ANALYSTS SAY THE SURGE IN PLANNED OUTPUT SIGNALS THAT THE AUTO MAKERS EXPECT THE INDUSTRYWIDE SALES RECOVERY TO STRENGTHEN THE RESULT AUTO ANALYSTS FORECAST CONTINUED STRENGTHENING OF PROFITS AT FORD CHRYSLER AND GENERAL MOTORS CORP THE PRODUCTION INCREASE IS STEEPER THAN THE JUMP IN SALES WHICH IN THE PAST THREE MONTHS HAS BEEN RUNNING AT ABOUT 12 OVER THE PREVIOUS YEAR THAT REFLECTS BOTH A CONTINUING SHIFT OF PRODUCTION TO THE US FROM ABROAD AND OPTIMISM THAT SALES WILL CONTINUE TO RISE WE ARE LOOKING AT A HUGE SURGE HERE SAID DAVID BRADLEY AN AUTO ANALYST WITH JP MORGAN SECURITIES BUT HE SAID HE'S CONCERNED THAT STRONG GROWTH AS EVIDENCED BY JANUARY'S 14 JUMP IN VEHICLE SALES OVER YEAREARLIER LEVELS COULD STRAIN DETROIT'S PRODUCTION CAPACITY AND HE ADDED A SHORTAGE OF KEY VEHICLES COULD GIVE THE TROUBLED JAPANESE AUTO MAKERS THE EDGE THEY NEED TO REGAIN MARKET SHARE LOST TO THE BIG THREE SOME CAR DEALERS ARE ALREADY COMPLAINING THEY CAN'T KEEP CERTAIN POPULAR MODELS IN STOCK BUT JOHN CASESA WERTHEIM SCHRODER & CO'S AUTO ANALYST SAID THE INDUSTRY CAN EASILY HANDLE ADDITIONAL GROWTH IN CAPACITY MOST SUPPLIERS AND MANUFACTURERS ARE PLANNING FOR EVEN HIGHER PRODUCTION IN 1995 WHAT'S REMARKABLE IS THAT WE ARE SEEING SUCH STRONG PRODUCTION RELATIVELY EARLY IN THE SALES CYCLE MR CASESA SAID THE BIGGEST PRODUCTION INCREASES ARE COMING FROM DETROIT BOTH CHRYSLER AND FORD ARE CONCENTRATING ON IMPROVING PRODUCTIVITY IN EXISTING ASSEMBLY PLANTS TO INCREASE CAPACITY IN ADDITION THE AUTO MAKERS ARE ADDING CAPACITY WITHOUT PUTTING UP ANY HUGE CASH OUTLAYS FOR NEW ASSEMBLY PLANTS FORD FOR EXAMPLE WILL ADD SEVERAL THOUSAND VEHICLES TO ITS PRODUCTION SCHEDULE THIS YEAR WITH THE WINDSTAR MINIVAN THE NEW MINIVAN WILL BE BUILT IN THE ASSEMBLY PLANT THAT USED TO BUILD THE TEMPO/TOPAZ CARS GM SAID ITS PLANNED OUTPUT MAY SURPASS ITS OWN FORECASTS IF IT CAN SUCCESSFULLY BOOST PRODUCTION TO COMPENSATE FOR TIME LOST BECAUSE OF HEAVY SNOW LAST MONTH ONE REASON FOR THE STRONG GROWTH IN AUTO PRODUCTION IS THAT THE AVERAGE US CAR IS NOW 84 YEARS OLD THE HIGHEST AVERAGE AGE SINCE THE KOREAN WAR SAID BILL WILSON AN ECONOMIST WITH COMERICA BANK IN DETROIT WHO TRACKS THE AUTOMOTIVE INDUSTRY A FLEET OF OLDER CARS COMBINED WITH STRONG FOURTHQUARTER ECONOMIC GROWTH NATIONALLY AND RISING CONSUMER CONFIDENCE LEADS TO HEAVY EXPECTATIONS OF NEW CARS SALES THE PRECIPITOUS INCREASE IN VEHICLE SCRAPPAGE WILL CONTINUE TO CREATE STRONG DEMAND FOR NEW VEHICLES MR WILSON SAID LAST YEAR A RECORD 13 MILLION VEHICLES WERE SCRAPPED AND IN 1994 AN ADDITIONAL 133 MILLION VEHICLES WILL BE TAKEN OFF THE ROAD MR WILSON PREDICTS NEW CAR DEALERS HAD A 65DAY SUPPLY OF INVENTORY AT THE END OF DECEMBER ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION A LEVEL THAT'S CONSIDERED IDEAL BY THE INDUSTRY THIS WEEK CHRYSLER IS SHUTTING DOWN ITS BELVIDERE ILL PLANT WHERE IT ASSEMBLES SUBCOMPACT NEONS BECAUSE OF A PROBLEM WITH A KEY COMPUTER CONTROL PART HERE ARE THE AUTO MAKERS' PLANS FOR THE FIRST QUARTER 9402070150 940207 CONSOLIDATED STORES' SALES FALL COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE FIVE WEEKS ENDED JAN 29 TOTALED 634 MILLION DOWN 2 FROM 647 MILLION IN THE COMPARABLE PERIOD OF 1992 THE COMPANY SAID COMPARABLESTORE SALES FOR STORES OPEN TWO FULL FISCAL YEARS FELL 14 FOR THE FIVEWEEK PERIOD AND ROSE 18 FOR THE FISCAL YEAR ENDED JAN 30 CONSOLIDATED STORES OPERATES A CHAIN OF SPECIALTY RETAIL CLOSEOUT STORES 9402070149 940207 NATIONAL SEMICONDUCTOR BUYBACK SANTA CLARA CALIF NATIONAL SEMICONDUCTOR CORP SAID IT PLANS TO BUY BACK ON THE OPEN MARKET AS MANY AS 35 MILLION OF ITS COMMON SHARES DURING 1994 THE COMPANY HAS ABOUT 110 MILLION SHARES CURRENTLY OUTSTANDING 9402070148 940207 DEAN WITTER REYNOLDS FORMER MANAGER FINED BY AMERICAN EXCHANGE NEW YORK THE AMERICAN STOCK EXCHANGE FINED ROBERT BURKE SPRINGFIELD MASS A FORMER BRANCH OFFICE MANAGER OF DEAN WITTER REYNOLDS INC 10000 FOR FAILING TO PROPERLY SUPERVISE A BROKER MR BURKE WAS ALSO BARRED FOR SIX MONTHS AS A BRANCH OFFICE MANAGER REGISTERED OPTIONS PRINCIPAL OR IN ANY OTHER SUPERVISORY POSITION HE DIDN'T ADMIT OR DENY CHARGES THAT HE FAILED TO PROPERLY SUPERVISE A BROKER'S IMPROPER OPTIONS TRADING MR BURKE COULDN'T BE REACHED FOR COMMENT DEAN WITTER IS A UNIT OF DEAN WITTER DISCOVER & CO SEPARATELY THE EXCHANGE BARRED FOR TWO YEARS IN ANY SUPERVISORY CAPACITY NINETTE HEREFORD RIVERSIDE CALIF A FORMER BRANCH OFFICE MANAGER OF CHARLES SCHWAB & CO SHE DIDN'T ADMIT OR DENY ALLEGATIONS OF FAILING TO SUPERVISE A REGISTERED EMPLOYEE'S HANDLING OF OPTIONS TRADES SHE COULDN'T BE REACHED FOR COMMENT 9402070147 940207 KLM AIR TRAFFIC ROSE 18 IN JANUARY ON GAIN IN CARGO PASSENGERS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID ITS UNDERLYING BUSINESS GREW STRONGLY AGAIN IN JANUARY THE 382 STATEOWNED DUTCH FLAG CARRIER SAID TOTAL AIRLINE TRAFFIC GREW 18 TO 5316 MILLION TON KILOMETERS FROM 4509 MILLION TON KILOMETERS A YEAR EARLIER KLM HAS BEEN RECORDING STRONG MONTHLY GROWTH IN THE VOLUME OF PASSENGERS AND FREIGHT IT CARRIES BUT FARE WARS ON CROWDED AND FIERCELY COMPETITIVE ROUTES HAVE SAPPED INCOME A TON KILOMETER REPRESENTS ABOUT 10 PASSENGERS OR ONE METRIC TON OF FREIGHT CARRIED OVER ONE KILOMETER KLM ALSO FILLED MORE OF ITS AVAILABLE CARGO AND SEATING CAPACITY IN JANUARY CAPACITY UTILIZATION OR LOAD FACTOR ROSE TO 686 LAST MONTH FROM 644 KLM SAID IT SWUNG TO A PROFIT OF 15 MILLION GUILDERS 77 MILLION IN THE FISCAL THIRD QUARTER ENDED DEC 31 FROM A NET LOSS OF 437 MILLION GUILDERS A YEAR EARLIER REVENUE ROSE 71 TO 211 BILLION GUILDERS IMPROVED EFFICIENCY AND STEADY OUTLAYS WERE AMONG FACTORS RETURNING KLM TO PROFIT ALTHOUGH THE MAIN CAUSE WAS OVER 300 MILLION GUILDERS OF ONETIME CHARGES IN THE YEAREARLIER PERIOD KLM SAID ITS HAULAGE OF CARGO INCLUDING MAIL INCREASED 18 TO 2358 MILLION TON KILOMETERS FROM THE 1990 MILLION TON KILOMETERS PASSENGER TRAFFIC ROSE 17 TO 2958 MILLION TON KILOMETERS FROM 2519 MILLION TON KILOMETERS 9402070146 940207 CUTS IN TOBACCO TAXES ARE EXPECTED IN CANADA OTTAWA CANADIAN AND PROVINCIAL GOVERNMENTS ARE EXPECTED TO CUT TOBACCO TAXES SOON IN AN ATTEMPT TO CURB SMUGGLING OF CIGARETTES INTO CANADA DETAILS OF THE PLAN WHICH IS ALSO EXPECTED TO INCLUDE TOUGHER ENFORCEMENT OF ANTISMUGGLING LAWS COULD BE ANNOUNCED THIS WEEK GOVERNMENT OFFICIALS SAID A CUT IN TOBACCO TAXES HAS BEEN STRONGLY URGED BY THE GOVERNMENT OF QUEBEC WHERE TOBACCO RETAILERS HAVE BEEN PROTESTING THEIR LOSS OF BUSINESS TO SMUGGLING CANADIAN AND PROVINCIAL CIGARETTE TAXES ARE ABOUT FIVE TIMES THE AVERAGE US LEVEL MOST SMUGGLED CIGARETTES ARE MADE IN CANADA EXPORTED DUTYFREE TO THE US AND THEN REROUTED ILLEGALLY INTO CANADA THEY COST ABOUT HALF THE PRICE OF LEGALLY PURCHASED CIGARETTES THE TOBACCO INDUSTRY ESTIMATES THAT 30 OF ALL CIGARETTES SMOKED IN CANADA ARE SMUGGLED THE CONTRABAND MARKET IS ESTIMATED TO BE AS HIGH AS 65 IN QUEBEC CANADIAN HEALTH GROUPS HAVE OPPOSED THE PLANNED TAX CUT THEY SAID LOWER CIGARETTE PRICES WOULD ENCOURAGE SMOKING ESPECIALLY AMONG YOUNG PEOPLE 9402070145 940207 FOR A REAL BUDGET DEBATE BY ROBERT E ANDREWS THE BIGGEST HOAX IN AMERICAN POLITICS IS THE SOLEMN ASSERTION THAT CONGRESS WILL DEBATE AND PASS A BUDGET TO GOVERN OUR FISCAL AFFAIRS IN TRUTH THERE WILL BE NO DEBATE OR VOTE ABOUT MOST OF YOUR MONEY THE ARCANE RULES OF CONGRESS PERMIT ABOUT 25 KEY MEMBERS TO SPEND ABOUT 25 OF THE NATION'S GROSS DOMESTIC PRODUCT THE RESULT IS FISCAL CHAOS AND A GROWING DISTRUST OF CONGRESS THE FEDERAL GOVERNMENT IS AUTHORIZED TO SPEND 1513 TRILLION IN THE CURRENT FISCAL YEAR ALMOST HALF 7527 BILLION IS SPENT ON ENTITLEMENTS IF A CONGRESSMAN OR SENATOR WANTS TO REDUCE THIS TYPE OF SPENDING HE MUST INTRODUCE A BILL TO ALTER OR ABOLISH THE ENTITLEMENT THE BILL THEN IS REFERRED TO A COMMITTEE IF THE COMMITTEE CHAIRMAN OPPOSES THE LEGISLATION IT USUALLY DOESN'T GET CONSIDERED SO 7527 BILLION 497 IS INSULATED FROM DEMOCRACY BY A HANDFUL OF MEMBERS WHO CONTROL THESE KEY COMMITTEES THE 212 BILLION WE ARE FORCED TO COMMIT TO DEBT SERVICE IS OBVIOUSLY BEYOND DEBATE THAT LEAVES 5483 BILLION OR 36 THAT COMES BEFORE CONGRESS IN THE FORM OF 13 SEPARATE APPROPRIATIONS BILLS THE ONLY REAL DEBATE ON THESE HUGE BILLS OCCURS IF A MEMBER OFFERS AN AMENDMENT THAT SPENDS LESS ON AN EXISTING PROGRAM OR ABOLISHES IT ALL TOGETHER IN THE END THESE AMENDMENTS COVER ONLY ABOUT 10 OF THE BUDGET AND THE HUGE APPROPRIATIONS BILLS THEY ARE ATTACHED TO PASS BY NEARLY UNANIMOUS VOTES IN AUGUST REP BILL ZELIFF AND I PROPOSED A SPECIAL SESSION OF CONGRESS DEVOTED TO DEBATE OVER FEDERAL SPENDING ANY MEMBER COULD COME TO THE FLOOR AND OFFER ANY PROPOSAL TO CHANGE OR ABOLISH ANY PROGRAM EVERY DOLLAR OF THE BUDGET COULD BE DEBATED AND ALTERED BY DEMOCRATIC VOTE AIDES FROM THE HOUSE LEADERSHIP HAVE CALLED THIS IDEA A THREERING CIRCUS BUT 74 DEMOCRATS AND 160 REPUBLICANS ENDORSED THE PLAN IN AN AUG 6 LETTER TO THE SPEAKER REP ZELIFF AND I NOW HAVE FILED A BILL THAT WOULD MAKE OUR PLAN HAPPEN WHAT WOULD RESULT FROM FISCAL DEMOCRACY A REAL BUDGET DERIVED FROM DEMOCRATIC DEBATE WHETHER THIS WOULD STEM THE MALIGNANT GROWTH OF FEDERAL SPENDING IS UNCERTAIN BUT AT LEAST THE PUBLIC WOULD SEE WHO WANTS TO SPEND HOW MUCH MONEY AND FOR WHAT PURPOSE MR ANDREWS A DEMOCRAT FROM NEW JERSEY IS A MEMBER OF THE HOUSE 9402070144 940207 COMMODITIES DERIVATIVES MARKETS GYRATE WILDLY AFTER FED ACTION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL FOR WILLIAM GREENSPAN WHO MAKES HIS LIVING TRADING STOCKINDEX FUTURES CONTRACTS AT THE CHICAGO MERCANTILE EXCHANGE THE FIRST CLUE THAT THE FED HAD TIGHTENED RATES WAS THE TUMULT OF 300 VOICES SCREAMING SIMULTANEOUSLY TO SELL TWO HOURS LATER THE VALUE OF A SINGLE FUTURES CONTRACT ON THE STANDARD & POOR'S INDEX OF 500 LEADING STOCKS HAD PLUMMETED 6450 TRADERS SLOW TO LIQUIDATE THEIR LONG POSITIONS OR WAGERS THAT PRICES WOULD RISE WERE SUDDENLY TENS OR EVEN HUNDREDS OF THOUSANDS OF DOLLARS POORER I DON'T KNOW IF THIS IS THE BOTTOM OR IF WE GO DOWN FARTHER FROM HERE SAID A HOARSE AND BREATHLESS MR GREENSPAN WHO IS NO RELATION TO THE CHAIRMAN OF THE FEDERAL RESERVE I JUST KNOW THAT THIS MARKET GOES DOWN A HECK OF A LOT FASTER THAN IT GOES UP THE FUROR FRIDAY IN THE CME'S STOCKINDEX PIT WAS JUST ONE EXAMPLE OF AN ELECTRIFYING DAY FOR US DERIVATIVES MARKETS WHICH TRADE FINANCIAL INSTRUMENTS WHOSE VALUES ARE BASED ON OTHER SECURITIES OR COMMODITIES THE CME LED THE PACK TRADING MORE THAN 23 MILLION FUTURES AND OPTIONS CONTRACTS ABOUT A MILLION MORE CONTRACTS THAN ANY DERIVATIVES EXCHANGE HAS EVER TRADED IN A SINGLE DAY INVESTORS RANGING FROM BANKS AND SECURITIES FIRMS TO INDIVIDUALS PARTICIPATE IN THESE MARKETS USING THEM TO SPECULATE OR TO HEDGE AGAINST UNFAVORABLE SWINGS IN STOCKS AND OTHER SECURITIES AND BECAUSE EACH DERIVATIVES CONTRACT CONTROLS SECURITIES WITH A HIGH DOLLAR VALUE A HUNDRED OR MORE SHARES OF STOCK SAY OR 1 MILLION WORTH OF CURRENCY FRIDAY'S FED TIGHTENING AND THE SUBSEQUENT STOCKMARKET SELLOFF HAD AN EXAGGERATED EFFECT ON DERIVATIVES PRICES PRICES GYRATED WILDLY IN CONTRACTS BASED ON STOCKS INTEREST RATES FOREIGN CURRENCIES AND PRECIOUS METALS MANY IN THE DERIVATIVES INDUSTRY EXPECT MORE FIREWORKS TODAY THE CRITICAL TIME WILL BE LUNCHTIME IN NEW YORK SAID WILLIAM FLOERSCH VICE CHAIRMAN OF THE CHICAGO BOARD OPTIONS EXCHANGE AND OWNER OF A FIRM THAT MAKES MARKETS IN STOCKOPTIONS CONTRACTS EACH OF WHICH REPRESENTS 100 SHARES OF SUCH BLUECHIP ISSUES AS MCDONALD'S KMART AND XEROX THE MARKETS ARE SORT OF THIN THEN MR FLOERSCH SAYS AT THAT TIME I THINK THE STOCK MARKET WILL TURN DOWN AND FINISH DOWN ABOUT 50 POINTS FOR THE DAY HE BELIEVES THAT FRIDAY'S DOWNDRAFT WAS THE BEGINNING OF A MODEST 200POINT CORRECTION OF THE DOW JONES INDUSTRIALS WHICH IS NECESSARY HE SAYS BECAUSE THE STOCK MARKET ROSE TOO FAR TOO FAST AT THE CBOE WHICH IS THE NATION'S BIGGEST STOCKOPTIONS EXCHANGE EXECUTIVES ARE BRACING FOR ANOTHER BIG DAY TODAY AFTER TRADING AN UNUSUALLY HIGH 11 MILLION OPTIONS CONTRACTS FRIDAY JACK WING CHAIRMAN OF THE CHICAGO CORP BROKERAGE FIRM SAID HIS FIRM HANDLED ORDERS FOR ABOUT 180000 STOCKOPTIONS CONTRACTS FRIDAY AT THE CBOE UP FROM ITS NORMAL DAILY VOLUME OF ABOUT 80000 CONTRACTS AT THE CHICAGO EXCHANGE NOR ARE STOCK DERIVATIVES THE ONLY INSTRUMENTS AFFECTED BY THE FED POLICY SHIFT THE VAST MAJORITY OF THE CME'S RECORD TRADING VOLUME FRIDAY WAS IN ITS EURODOLLAR FUTURES AND OPTIONS CONTRACTS WHICH TRACK THE MOVEMENT OF SHORTTERM INTEREST RATES THE EURODOLLAR PIT EXPLODED MR GREENSPAN SAID AFTER TRADING IN A RELATIVELY NARROW RANGE FOR MONTHS THE CME SAID IT TRADED 17 MILLION EURODOLLAR FUTURES AND OPTIONS CONTRACTS FRIDAY EACH OF WHICH REPRESENTS 1 MILLION HELD IN AN INTERESTBEARING ACCOUNT OUTSIDE OF THE US THE IMPACT OF THE FED'S ACTION ON THE EURODOLLAR MARKET WAS INTENSIFIED BY THE FACT THAT THE LABOR DEPARTMENT HAD EARLIER RELEASED A MONTHLY UNEMPLOYMENT REPORT MR GREENSPAN SAID THE CME'S OPEN INTEREST OR THE NUMBER OF CONTRACTS OUTSTANDING ROSE BY ABOUT 100000 FRIDAY THAT CME OFFICIALS SAY IS AN INDICATION THAT MORE OF THE DAY'S TRADING ACTIVITY WAS INTENDED TO OPEN NEW DERIVATIVES POSITIONS THAN TO CLOSE OUT OLD ONES MUCH OF THE TRADING IN THE EURODOLLAR PIT FOR INSTANCE CAME FROM BANKS LOOKING TO LOCK IN FAVORABLE SHORTTERM INTEREST RATES AND THUS MINIMIZE PAYOUTS RELATED TO THE TIGHTENING OF THE FED FUNDS RATE THE FED TIGHTENING ALSO SENT PRECIOUS AND INDUSTRIAL METALS PRICES SPINNING LOWER AND COULD CONTINUE TO AFFECT THESE AND OTHER COMMODITIES MARKETS THIS WEEK WE HAD A QUICK KNEEJERK REACTION IMMEDIATELY AFTER THE FED ANNOUNCED THE TIGHTENING SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE FACT THAT THE FED CAME OUT AND ANNOUNCED IT TOOK EVERYBODY BY SURPRISE BECAUSE USUALLY THE FED CHANGES RATES THROUGH SOME KIND OF INTERVENTION RATHER THAN A FORMAL ANNOUNCEMENT AT NEW YORK'S COMMODITY EXCHANGE THE PRICE OF GOLD FOR APRIL DELIVERY PLUNGED 5 AN OUNCE AFTER THE ANNOUNCEMENT TO ABOUT 387 AN OUNCE FROM THE DAY'S HIGH OF 39230 SILVER FOR MARCH DELIVERY DOVE ABOUT 15 CENTS TO 536 AN OUNCE FROM THE HIGH OF 551 AN OUNCE IN LATE AFTERNOON HOWEVER AS THE STOCK MARKET'S DECLINE INTENSIFIED THE PRICES OF BOTH GOLD AND SILVER STABILIZED AND BEGAN TO RECOVER EACH FINISHED THE DAY ABOVE ITS LOWS APRIL GOLD SETTLED AT 38830 AN OUNCE AND MARCH SILVER AT 5427 AN OUNCE THE REASON FOR THE LATEDAY RECOVERY MR O'NEILL SAID IS THAT PRECIOUSMETALS PRICES TEND TO BENEFIT FROM A DECLINE IN STOCK PRICES AND IF THE SELLOFF ON WALL STREET CONTINUES THIS WEEK HE SAID METALS PRICES SHOULD CONTINUE TO RISE AS INVESTORS MOVE MONEY FROM STOCKS INTO HARD ASSETS SUCH AS GOLD SILVER AND PLATINUM A CONTINUED STOCKMARKET CORRECTION ALSO COULD AFFECT THE PRICES OF SUCH CONVENTIONAL COMMODITIES AS CATTLE AND COTTON MR O'NEILL SAID WHICH FOR REASONS THAT BAFFLE MANY ANALYSTS HAVE ALWAYS TENDED TO MOVE IN THE OPPOSITE DIRECTION OF STOCK PRICES IN OTHER COMMODITY MARKETS FRIDAY LIVESTOCK & MEATS CATTLE PRICES ARE EXPECTED TO STRENGTHEN THIS WEEK IN THE WAKE OF A CATTLE SURVEY RELEASED FRIDAY BY THE AGRICULTURE DEPARTMENT THE GOVERNMENT PEGGED THE NUMBER OF CALVES BORN IN 1993 AT 396 MILLION UP 1 FROM 1992 THE GOVERNMENT IN JULY HAD FORECAST A 2 GAIN IN THE 1993 CALF CROP THE SMALLER CALF CROP SIGNALS TIGHTERTHANEXPECTED SUPPLIES OF MATURE CATTLE AVAILABLE FOR SLAUGHTER LATER THIS YEAR THE AGRICULTURE DEPARTMENT ESTIMATED THE NUMBER OF CATTLE AND CALVES IN THE US ON JAN 1 AT 1017 MILLION HEAD UP 1 FROM A REVISED SURVEY THAT FOUND 1006 MILLION ANIMALS ON JAN 1 1993 9402070143 940207 TECHNOLOGY & HEALTH SECURITY BREACH AT THE INTERNET RAISES WORRIES BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SWEEPING BREAKIN INTO THE ONLINE ACCOUNTS OF THOUSANDS OF INTERNET USERS MAY HEIGHTEN ALREADY GROWING CONCERN OVER THE SECURITY OF ONLINE SYSTEMS THOUSANDS OF NEWCOMERS ARE SIGNING ON TO THE INTERNET EACH MONTH OFTEN UNAWARE THAT THE PASSWORDS THEY USE AND THE ACCOUNTS THEY OPEN ARE VULNERABLE TO UNAUTHORIZED ACCESS LATE LAST WEEK AN INTERNET SECURITY INVESTIGATION TEAM SPOTTED WHAT MAY BE THE LARGEST COMPUTER SECURITY BREACH ON THE INTERNET AND URGED TENS OF THOUSANDS OF USERS TO CHANGE THEIR PASSWORDS THE INTRUDERS WHO GAINED UNAUTHORIZED ACCESS ARE KNOWN IN CYBERSPACE CIRCLES AS CRACKERS RATHER THAN THE POPULAR NAME HACKER THE GROUP THAT PUT OUT THE WARNING THE COMPUTER EMERGENCY RESPONSE TEAM SAID IT ISN'T CLEAR WHETHER THE CRACKERS HAD VANDALIZED COMPUTER SYSTEMS OR UNLEASHED DAMAGING VIRUSES SECURITY EXPERTS SPECULATED THAT THE BREAKINS WERE CONNECTED TO A HANDFUL OF STUDENTS KNOWN AS THE POSSE THE GROUP HAS BEEN TAUNTING SYSTEMS OPERATORS ON THE INTERNET DEMONSTRATING THAT THEY HAVE INSIDE KNOWLEDGE OF VARIOUS COMPUTER SYSTEMS ACCORDING TO LEN ROSE OWNER OF NETSYS INC A PALO ALTO CALIF COMPANY THAT SELLS ACCESS TO THE INTERNET THESE GUYS GO IN AND TAKE DOWN SYSTEMS JUST TO SAY THEY'VE DONE IT SAID MR ROSE A FORMER HACKER WHO HAS BECOME A SECURITY CONSULTANT SECURITY EXPERTS SAY SOME MEMBERS OF THE GROUP OPERATE OUT OF PHILADELPHIA AND PHOENIX WE HAVEN'T IDENTIFIED WHO DID IT SAID JAMES SETTLE SPECIAL AGENT FOR THE FEDERAL BUREAU OF INVESTIGATION THERE ARE SO MANY PEOPLE OUT THERE WHO CAN DO THIS MR SETTLE SAYS THE SAME METHOD OF BREAKING IN HAS BEEN USED SINCE DECEMBER 1991 ON JAN 1 A PROGRAM THAT LOGS PASSWORDS WAS INSTALLED ON COMPUTERS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THE PROGRAM COLLECTED MORE THAN 3000 PASSWORDS BETWEEN 7 AM AND 9 PM FORCING SYSTEM ADMINISTRATORS TO SEND NOTICES TO THOSE USERS TO CHANGE THEIR PASSWORDS ROB ROBERTSON A SYSTEMS PROGRAMMER THERE SAID HE SPENT A WEEK SHORING UP THE SYSTEM'S SECURITY AND ASSESSING DAMAGE THERE WAS NONE HE SAID THIS ISN'T GOING TO GO AWAY A SPOKESMAN FOR THE RESPONSE TEAM SAID OF THE INCIDENT WHICH WAS FIRST REPORTED FRIDAY BY THE WASHINGTON POST THE NUMBER OF INFECTED SITES COULD SIGNIFICANTLY INCREASE THE SPOKESMAN SAID HE SAID CRACKERS HAD INSTALLED SOFTWARE PROGRAMS THAT WATCHED USERS LINK UP WITH REMOTE COMPUTERS ON THE INTERNET THEREBY CREATING A LOG OF NAMES AND PASSWORDS AND LATER SIGNING ON UNDER ASSUMED IDENTITIES EUGENE SPAFFORD WHO RESEARCHES SECURITY ISSUES AT PURDUE UNIVERSITY SAID HE KNOWS OF A FEW DOZEN SITES AFFECTED BY THE BREAKINS BUT HE ISN'T CONFIDENT THAT INVADED ORGANIZATIONS WILL CONCEDE THEY HAVE BEEN HIT BUSINESSES ARE SO EXTRAORDINARILY PARANOID AND EMBARRASSED BY THE INTRUDERS THAT THE ISSUE OF NETWORK SECURITY FALLS BY THE WAYSIDE IT'S ENTIRELY THE WRONG APPROACH MR SPAFFORD SAID IT HINDERS PUBLIC AWARENESS EXPERTS SAY THE RUSH OF COMMERCIAL TRAFFIC ONTO THE INTERNET HAS FRUSTRATED EFFORTS TO TRACK AND THWART BREACHES SINCE MID1990 THE NUMBER OF BUSINESSES CONNECTING TO THE INTERNET HAS RISEN 30FOLD TO 11000 SAID HOWARD FUNK AN INTERNET CONSULTANT 9402070142 940207 TRUCKS KEEP INVENTORIES ROLLING PAST WAREHOUSES TO PRODUCTION LINES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL IT SEEMS WAREHOUSES HAVE GROWN WHEELS CALLED ROLLING INVENTORIES TRUCKS HAVE BECOME THE PLACE OF CHOICE FOR JUSTINTIME STOCKPILES EIGHTEENWHEELERS PULL UP TO FACTORY LOADING DOCKS TO DELIVER PARTS THAT GO ALMOST IMMEDIATELY ONTO PRODUCTION LINES BYPASSING THE WAREHOUSES COMPANIES NOW PRECISELY PLAN THEIR NEED OF INVENTORY SO THAT INTERMEDIATE WAREHOUSES AREN'T NEEDED SAYS DON SCHNEIDER PRESIDENT OF TRUCKING CONCERN SCHNEIDER NATIONAL INC AND A MEMBER OF THE CHICAGO FEDERAL RESERVE BANK TO BE SURE JUSTINTIME INVENTORY METHODS AREN'T NEW BUT AS MORE COMPANIES COME AROUND TO THIS APPROACH TRUCKS AND RAILCARS HAVE BEGUN TO FUNCTION AS WAREHOUSES FOR MANY PRODUCERS ADDING YET ANOTHER ANOMALY TO THE ECONOMIC RECOVERY THE CHANGE UNDERCUTS THE USEFULNESS OF MEASURING WAREHOUSE INVENTORIES TO TRACK THE PACE OF A RECOVERY IT ALSO DAMPS THE BOOSTER EFFECT INVENTORY BUILDUPS CAN BRING EARLY IN A RECOVERY INDEED AS DEMAND HAS PICKED UP DURING THIS RECOVERY INVENTORIES HAVE STAYED COMPARATIVELY LOW AND MANUFACTURING JOBS REMAIN HARD TO COME BY HISTORICALLY RETAIL SPACE AND WAREHOUSE SPACE USUALLY MIRROR EACH OTHER DURING ECONOMIC EXPANSIONS AND DOWNTURNS DURING THE MOST RECENT RECESSION FOR INSTANCE COMPANIES CUT PRODUCTION AND CLOSED DOWN STORES DUE TO SHRINKING DEMAND NEW CONSTRUCTION OF STORES AND WAREHOUSES SLUMPED BUT DURING THE RECOVERY THE CONNECTION BETWEEN STORES AND WAREHOUSES HAS BEEN BROKEN SAYS JOHN WALKER AN ANALYST WITH FW DODGE IN BOSTON THE CONSTRUCTION OF WAREHOUSE SQUARE FOOTAGE TUMBLED NEARLY 18 IN 1992 AND 9 IN 1993 EVEN AS THE ECONOMY GAINED MOMENTUM AND SPACE IN STORES AND SHOPPING CENTERS GREW 6 AND 12 RESPECTIVELY FOR TRUCKING COMPANIES THE TREND MEANS NEW BUSINESS BUT ALSO MORE DEMANDING CUSTOMERS MANY TRUCKING COMPANIES SAY THAT IN RECENT YEARS THEY'VE COME UNDER INCREASING PRESSURE TO DELIVER PARTS WITHIN A SMALL WINDOW OF TIME THERE ARE SOMETIMES LESS THAN 10MINUTE LAG TIMES SAYS LARRY MULKEY PRESIDENT OF RYDER DEDICATED LOGISTICS INC A MIAMI UNIT OF TRANSPORTATIONSERVICES COMPANY RYDER SYSTEM INC SUCH USE OF TRUCKS ENABLES BUSINESSES TO CUT SPACE COSTS FREEING UP CAPITAL FOR INVESTMENTS SUCH AS EQUIPMENT OR NEW EMPLOYEES THE BACK ROOM DECREASES IN SIZE BECAUSE YOU DON'T NEED IT TO STORE STOCKPILES AND THAT MEANS YOU HAVE MORE FLOOR SPACE FOR SELLING MR MULKEY SAYS BUT A HEAVY RELIANCE ON TRUCKS TO KEEP INVENTORIES LOW ISN'T WITHOUT ITS RISKS THE GENERAL MOTORS CORP TOYOTA MOTOR CO JOINT VENTURE IN FREMONT CA ONCE HAD TO SHUT DOWN ITS PRODUCTION LINE BECAUSE A JUSTINTIME DELIVERY TRUCK BROKE DOWN ON THE HIGHWAY KEN SIMONSON CHIEF ECONOMIST OF THE AMERICAN TRUCKING ASSOCIATIONS SAYS TRUCKING FOR JUSTINTIME ORDERS GENERALLY WORKS BETTER IN UNCONGESTED REGIONS OF THE COUNTRY BUT TRUCKING COMPANIES HAVE COME A LONG WAY IN ELIMINATING DELIVERY GLITCHES MR SCHNEIDER OF SCHNEIDER NATIONAL BOASTS THAT NOT ONE LOAD WAS LATE BECAUSE OF THE ICY WINTRY WEATHER THAT HIT MUCH OF THE NATION RECENTLY TECHNOLOGY ENABLES TRUCKING COMPANIES AND THEIR CLIENTS TO TRACK A LOAD'S PROGRESS FROM MINUTE TO MINUTE IF A PROBLEM COMES UP ANOTHER TRUCK CAN BE DISPATCHED IMMEDIATELY TO PICK UP THE LOAD TRUCKS ALSO HAVE BECOME MORE RELIABLE MECHANICALLY 9402070141 940207 LORAL WINS ARMY CONTRACT NEW YORK LORAL CORP WON A 109 MILLION CONTRACT TO CONTINUE PRODUCTION OF THE ARMY'S MULTIPLE LAUNCH ROCKET SYSTEM IN 1994 THE COMPANY SAID ITS VOUGHT SYSTEMS UNIT BASED IN TEXAS WILL PRODUCE 34 LAUNCHERS AND 167 REDUCEDRANGE PRACTICE ROCKET PODS FOR THE ARMY DELIVERIES EXTEND THROUGH MARCH 1997 MOST OF THE WORK WILL BE PERFORMED AT THE COMPANY'S CAMDEN ARK PLANT 9402070140 940207 IRS'S MUNI AUDIT PLANS WILL BE MORE AMBITIOUS WASHINGTON THE INTERNAL REVENUE SERVICE'S PLANS TO AUDIT MUNICIPAL BOND ISSUES FOR POSSIBLE TAX LAW VIOLATIONS ARE FAR MORE AMBITIOUS THAN THE 200 OR SO AUDITS PREVIOUSLY INDICATED BY THE AGENCY MARCUS OWENS A LEADER OF THE IRS EFFORT TO STRENGTHEN ITS MUNI ENFORCEMENT PROGRAM TOLD LAWYERS AND FINANCE OFFICERS RECENTLY THAT THE AGENCY WAS PLANNING TO AUDIT UP TO 200 MUNI ISSUES TO ESTABLISH A STATISTICALLY VALID INDICATION OF THE STATE OF VOLUNTARY COMPLIANCE WITH TAX RULES GOVERNING MUNICIPAL BONDS BUT MR OWENS CLARIFYING HIS COMMENTS IN A SUBSEQUENT INTERVIEW SAID THE AGENCY PLANS MULTIPLE SETS OF 100 TO 200 AUDITS FOR DIFFERENT CATEGORIES OF TAXEXEMPT BOND ISSUES THE IRS HASN'T DETERMINED THE EXACT NUMBER OF CATEGORIES IT WILL CREATE FOR THESE AUDITS BUT MR OWENS INDICATED THERE COULD EASILY BE FIVE OR SIX CATEGORIES ENTAILING UP TO 200 AUDITS EACH I WOULD NOT EXPECT THE AUDITS TO BEGIN UNTIL NEXT FISCAL YEAR DUE TO THE PLANNING PROCESS THE IRS OFFICIAL SAID 9402070139 940207 CLINTON PLANS JOBS SUMMIT TO TACKLE GLOBAL PROBLEM WASHINGTON AP PRESIDENT CLINTON WILL HOLD AN INTERNATIONAL JOBS SUMMIT IN DETROIT NEXT MONTH TO TACKLE THE GLOBAL PROBLEM OF PERSISTENTLY HIGH UNEMPLOYMENT THE WHITE HOUSE ANNOUNCED THE MARCH 1415 CONFERENCE WILL BRING TOGETHER ECONOMIC LABOR FINANCE AND INDUSTRY MINISTERS FROM THE GROUP OF SEVEN INDUSTRIALIZED DEMOCRACIES THE US CANADA GERMANY ITALY JAPAN FRANCE AND BRITAIN THE CONFERENCE WILL SEND A MESSAGE THAT WE INTEND TO CONFRONT THE CHALLENGE OF JOB CREATION AND UNEMPLOYMENT NOT RETREAT TO THE ECONOMIC STRUCTURES OF YESTERDAY THE WHITE HOUSE ANNOUNCEMENT SAID DURING A G7 MEETING LAST JULY IN TOKYO MR CLINTON ANNOUNCED HIS INTENTION TO CONVENE SUCH A CONFERENCE HE SAID THEN THE G7 OFFICIALS WOULD SEARCH FOR THE CAUSES AND POSSIBLE ANSWERS FOR THIS STUBBORNLY HIGH UNEMPLOYMENT THE PRESIDENT ORIGINALLY HOPED TO HOLD THE MEETING LAST FALL BUT IT WAS PUSHED INTO 1994 BY THE CRUSH OF OTHER ITEMS ON HIS FIRSTYEAR AGENDA 9402070138 940207 A WOMAN TURNS LAWRENCE KAN INTO DESTINATION FOR MOTORCOACHES BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL IN LAWRENCE KAN POP 65600 TOURIST ATTRACTIONS HAVE LONG BORDERED ON THE DESPERATE A MUSEUM FOR INSTANCE FEATURES A TRIBUTE TO THE SOLE SURVIVOR OF CUSTER'S LAST STAND COMANCHE THE HORSE NIGHTLIFE IS LIMITED TO DINNER AND A MOVIE SAYS MILAN VINNOLA A UNIVERSITY OF KANSAS STUDENT BUT MUNICIPAL OFFICIALS THINK THEY HAVE THE SOLUTION THE PLAY'S THE THING SPECIFICALLY THE ONEWOMAN PLAYS OF LOCAL DRAMA PROFESSOR KAY KUHLMANN SINCE THE 44YEAROLD ARTIST BEGAN PERFORMING HER PORTRAITS OF MAMIE EISENHOWER BESS TRUMAN AND OTHER FAMOUS WOMEN IN LOCAL THEATERS AND LIBRARIES LAWRENCE HAS BEGUN TO ATTRACT TOURISTS FOR THE PAST TWO YEARS MS KUHLMANN'S PERFORMANCES HAVE BEEN INCLUDED ON HISTORICALTHEME MOTORCOACH TOURS THROUGH THE GREAT PLAINS LAWRENCE TOUR OPERATOR MAUPINTOUR INC SAYS IT SOLD FOUR TIMES MORE PACKAGES LAST YEAR THAN IN 1992 AND 1994 BOOKINGS ARE STRONG OFFICIALS AT THE LOCAL CHAMBER OF COMMERCE WHICH RUNS THE LAWRENCE CONVENTION AND VISITORS BUREAU ARE RELIEVED IN APRIL THE CONVENTION BUREAU PLANS TO GIVE MS KUHLMANN AN AWARD FOR HER CONTRIBUTIONS TO TOURISM HER SHOWS ARE REAL INTIMATE SAYS JUDY BILLINGS OF THE CHAMBER THEY'RE NOT A GRAND PRODUCTION LIKE YOU'LL FIND IN BRANSON MO POP 3777 IN HER PERFORMANCES MS KUHLMANN DRESSES IN PERIOD COSTUMES DOES HER HAIR IN THE CHARACTER'S STYLE AND ADOPTS HER DICTION I HAVE REAL VERSATILE HAIR SHE SAYS MS KUHLMANN DIDN'T BEGIN RESEARCHING MAMIE EISENHOWER'S LIFE WITH THE AIM OF BECOMING A TOURIST ATTRACTION BUT NOW WITH THE LIVES OF HILLARY CLINTON TOKYO ROSE AND PIONEER WOMEN OF THE OREGON TRAIL IN HER REPERTOIRE THE PLAYWRIGHT IS TRANSLATING LOCAL FAME INTO BIGGER THINGS SHE'LL PLAY BESS TRUMAN AT THE NATIONAL ARCHIVES IN WASHINGTON THIS SPRING AND ON THE FOURTH OF JULY SHE'LL PERFORM AS MAMIE EISENHOWER AT THE RONALD REAGAN PRESIDENTIAL LIBRARY IN CALIFORNIA AFTER INTERVIEWING THE FIRST LADY'S PRESS SECRETARY FOR TIPS ON MRS CLINTON'S DEMEANOR MS KUHLMANN SAYS SHE HOPES TO HAVE A CHANCE TO MEET NANCY REAGAN AND DO A PLAY ABOUT HER FOR NOW THE ACTRESS IS WORKING ON A NEW PLAY ABOUT PATSY CLINE I'VE ALWAYS WANTED TO BE A COUNTRYWESTERN SINGER SHE SAYS 9402070137 940207 FINANCING BUSINESS EMERGING MEXICO FUND INC EMERGING MEXICO FUND INC NEW YORK SAID IT PLANS TO SELL ABOUT 22 MILLION COMMON SHARES THROUGH A RIGHTS OFFERING TO SHAREHOLDERS HOLDERS WILL RECEIVE ONE RIGHT FOR EACH SHARE HELD AND MAY PURCHASE AT A DISCOUNT ONE SHARE FOR EACH THREE RIGHTS HELD THE CLOSEDEND FUND WHICH INVESTS PRIMARILY IN MEXICAN EQUITY SECURITIES HAS ABOUT 67 MILLION SHARES OUTSTANDING AND ABOUT 156 MILLION IN ASSETS IN NEW YORK STOCK EXCHANGE TRADING FRIDAY THE FUND'S SHARES CLOSED AT 23875 DOWN 75 CENTS 9402070136 940207 INTERNATIONAL AUDI CHAIRMAN KORTUEM IS OUSTED BY VOLKSWAGEN BONN VOLKSWAGEN AG AS EXPECTED OUSTED THE CHAIRMAN OF ITS AUDI AG DIVISION THE GERMAN AUTO MAKER SAID FRANZJOSEF KORTUEM WOULD BE SUCCEEDED BY HERBERT DEMEL EFFECTIVE IMMEDIATELY HOWEVER THE TITLE OF CHAIRMAN AT AUDI IS BEING DONE AWAY WITH AND THE 40YEAROLD MR DEMEL WILL HAVE THE LESSER TITLE OF BOARD SPOKESMAN INDICATING AN ATTEMPT TO BRING THE POWER CENTER CLOSER TO VW HEADQUARTERS INDUSTRY OBSERVERS SAID MR DEMEL HAD BEEN CHIEF FOR TECHNICAL DEVELOPMENT VW GAVE NO OFFICIAL EXPLANATION FOR THE MANAGEMENT CHANGE BUT SAID IT WAS A MUTUALLY AGREED UPON DECISION BUT PEOPLE CLOSE TO VW WHO HAD LEAKED WORD EARLIER THIS WEEK THAT MR KORTUEM WOULD GET THE AX SAID IT REFLECTED VW CHAIRMAN FERDINAND PIECH'S DISPLEASURE WITH THE LOSSES AUDI EXPERIENCED UNDER THE 43YEAROLD MR KORTUEM'S LEADERSHIP LAST YEAR MR KORTUEM COULDN'T BE REACHED FOR COMMENT AUDI IS EXPECTED TO POST A PRETAX LOSS OF AROUND 300 MILLION MARKS 172 MILLION FOR 1993 COMPARED WITH A 508 MILLION MARK PRETAX PROFIT IN 1992 9402070135 940207 MARKETING & MEDIA HARPERCOLLINS'S SHINKER RESIGNS FROM ADULT UNIT NEW YORK HARPERCOLLINS PUBLISHERS A UNIT OF NEWS CORP SAID WILLIAM M SHINKER RESIGNED AS HEAD OF THE COMPANY'S ADULT CONSUMER DIVISION MR SHINKER 46 YEARS OLD SAID HE HAS NO CAREER PLANS FOLLOWING HIS FEB 18 DEPARTURE HARPERCOLLINS NAMED JACK MCKEOWN 41 WHO JOINED THE PUBLISHER A YEAR AGO AS MR SHINKER'S DEPUTY TO PUBLISHER OF ADULT CONSUMER BOOKS MR SHINKER'S RESIGNATION COMES AS A SHOCK BECAUSE HARPERCOLLINS JUST COMPLETED ONE OF ITS MOST SUCCESSFUL YEARS EVERPUBLISHING AN IMPRESSIVE STRING OF BESTSELLERS MR SHINKER IS WIDELY CONSIDERED A VERY SAVVY PUBLISHER AND HE HAS SPENT A DECADE BUILDING UP THE ADULT DIVISION SOME PUBLISHING INSIDERS SAY MR SHINKER LATELY HAS BEEN CLASHING WITH GEORGE CRAIG HARPERCOLLINS'S CHIEF EXECUTIVE OFFICER OVER HOW MUCH WAS SPENT ACQUIRING NEW BOOKS AND HOW ACCOUNTING FOR THEM HAS BEEN HANDLED REACHED AT HIS OFFICE MR SHINKER SAID I KNOW THIS IS A SHOCK TO OTHER PEOPLE BUT I CAN'T TALK ABOUT THE REASONS AND I DON'T WANT TO MR SHINKER'S WIFE SUSAN MOLDOW WILL REMAIN EDITOR IN CHIEF OF THE ADULT CONSUMER DIVISION 9402070134 940207 MCI COMPLETES ACQUISITION WASHINGTON MCI COMMUNICATIONS CORP SAID IT COMPLETED THE ACQUISITION OF MOST ASSETS AND BUSINESSES OF BT NORTH AMERICA INC A DATACOMMUNICATIONS SERVICES COMPANY FROM BRITISH TELECOMMUNICATIONS PLC FOR 125 MILLION THE ACQUISITION IS PART OF A WIDERANGING ALLIANCE BETWEEN THE TWO TELECOMMUNICATIONS GIANTS IN WHICH BRITISH TELECOM WILL BUY 20 OF MCI FOR 43 BILLION MCI SAID THE ALLIANCE IS STILL UNDER REGULATORY REVIEW IN THE US AND EUROPE 9402070133 940207 SHAWMUT NATIONAL HAS NO ARGUMENT WITH '94 FORECASTS BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON SHAWMUT NATIONAL CORP IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS OF 1994 NET INCOME OF 280 TO 3 A SHARE CHAIRMAN JOEL B ALVORD SAID IN 1993 THE BANK HOLDING COMPANY HAD NET INCOME OF 2907 MILLION OR 293 A SHARE INCLUDING 46 MILLION OR 49 CENTS A SHARE IN TAX CREDITS AND GAINS FROM ACCOUNTING CHANGES MR ALVORD SAID IN AN INTERVIEW THAT HE EXPECTS 1994 TO BE A GOOD YEAR WITH NO TAX CREDITS RECORDED AS A COMPANY SHAWMUT CAME THROUGH A DEEP RECESSION WELLCAPITALIZED WITH STRONG EARNINGS A RESTORED DIVIDEND AND A LEADERSHIP POSITION IN CONSUMER BANKING AND MORTGAGE BANKING SHAWMUT IS BACK HE SAID SHAWMUT'S LOAN PORTFOLIO SHOULD INCREASE 10 IN 1994 FROM 1538 BILLION AT DEC 31 ALVORD SAID WE'RE DRAMATICALLY UNDERLOANED AS A BANK HE SAID OUR LOAN PORTFOLIO IS AT 15 BILLION IT SHOULD BE AT 20 BILLION MR ALVORD SAID FUTURE GROWTH WILL STEM FROM SHAWMUT'S SPECIALIZED LENDING BUSINESS WHICH FOCUSES ON THE RADIO TELEVISION AND CABLE INDUSTRIES AND THE ASSETBASED LENDING SECTOR WHICH ARRANGES SMALL AND MEDIUMSIZED BUSINESS LOANS USING CUSTOMERS' ASSETS AS COLLATERAL MR ALVORD SAID THE SPECIALIZED LENDING PORTFOLIO SHOULD GROW 40 IN 1994 FROM 113 BILLION AT DEC 31 THE ASSETBASED LENDING PORTFOLIO SHOULD GROW 35 HE SAID THIS PORTFOLIO TOTALED 851 MILLION ON DEC 31 SHAWMUT ALSO EXPECTS TO GROW THROUGH REGIONAL ACQUISITIONS THE BANKING CONCERN WHICH IS BASED IN HARTFORD CONN SAID IT EXPECTS TO SUBMIT 1993 RACIAL DATA ON MORTGAGE LOANS AND REJECTIONS TO THE FEDERAL RESERVE BOARD THIS MONTH IN ORDER TO REQUEST THAT THE FED RECONSIDER ITS APPLICATION TO ACQUIRE NEW DARTMOUTH BANK IN MANCHESTER NH IN NOVEMBER THE FED REJECTED THE APPLICATION BECAUSE OF CONCERNS ABOUT SHAWMUT'S COMPLIANCE WITH FAIRLENDING LAWS SHAWMUT HAS SINCE SETTLED LENDINGDISCRIMINATION CHARGES WITH THE JUSTICE DEPARTMENT MR ALVORD SAID HE EXPECTS TO CLOSE THE NEW DARTMOUTH ACQUISITION LATE IN THE FIRST QUARTER SHAWMUT'S PENDING ACQUISITIONS OF PEOPLES BANCORP OF WORCESTER INC WORCESTER MASS AND GATEWAY FINANCIAL CORP OF NORWALK CONN ARE WAITING FOR APPROVAL BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY SHAWMUT EXPECTS THEM TO CLOSE BY JUNE MR ALVORD SAID THE THREE ACQUISITIONS WOULD ADD 4 BILLION TO 45 BILLION IN ASSETS TO SHAWMUT WHICH IS NEW ENGLAND'S THIRDLARGEST BANKING COMPANY BEHIND FLEET FINANCIAL GROUP INC AND BANK OF BOSTON CORP 9402070132 940207 BUSINESS BRIEFS CORRPRO COS MEDINA OHIO SIGNED A LETTER OF INTENT TO ACQUIRE UNITED CORROSION CONSULTANTS LTD OF EDMONTON ALBERTA CORRPRO WHICH PROVIDES CORROSIONCONTROL ENGINEERING SERVICES SAID UNITED CORROSION HAD SALES OF ABOUT 75 MILLION IN 1993 TERMS WEREN'T DISCLOSED PPG INDUSTRIES INC PITTSBURGH SAID IT COMPLETED THE ACQUISITION OF THE EUROPEAN ORIGINALEQUIPMENT AUTOMOTIVE COATING BUSINESS OF AKZO NV OF THE NETHERLANDS TERMS WEREN'T DISCLOSED RFS HOTEL INVESTORS INC MEMPHIS TENN HAS AGREED TO BUY 16 HOTELS IN THE MIDWEST FROM MBC A MADISON WIS CONCERN AND RELATED PARTNERSHIPS FOR ABOUT 96 MILLION IOMEGA CORP ROY UTAH CONCLUDED THE SALE OF ITS THINFILM HEAD DIVISION LOCATED IN FREMONT CALIF TO A UNIT OF AIWA CO OF JAPAN THE SALE WAS INCLUDED IN THE 126 MILLION RESTRUCTURING CHARGE IOMEGA REPORTED FOR THE FOURTH QUARTER OF 1993 TERMS WEREN'T DISCLOSED SUNBEAMOSTER CO FORT LAUDERDALE FLA SAID IT WILL BUILD A 60 MILLION 790000SQUAREFOOT MANUFACTURING AND DISTRIBUTION FACILITY IN HATTIESBURG MISS OFFICIALS SAID THE PLANT EVENTUALLY WILL EMPLOY ABOUT 900 WORKERS 9402070131 940207 COSMETIC CENTER SALES DECLINE THE RETAILER OF COSMETICS FRAGRANCES AND BEAUTY AIDS WHOSE STORES ARE CONCENTRATED IN THE MIDWEST AND MIDATLANTIC REGIONS SAID SEVERE WINTER WEATHER HURT SALES 9402070130 940207 OHIO CASUALTY FORECAST HAMILTON OHIO OHIO CASUALTY CORP SAID IT EXPECTS CLAIMS FROM THE SEVERE WINTER WEATHER IN THE MIDWEST AND NORTHEAST IN JANUARY TO CUT FIRSTQUARTER EARNINGS BY 38 CENTS A SHARE THE COMPANY SAID IT HAS RECEIVED SOME 4200 CLAIMS TO DATE BECAUSE OF WINTER STORMS THE MAJORITY OF THE CLAIMS INVOLVED PROPERTY DAMAGE IN THE YEARAGO QUARTER THE COMPANY EARNED 198 MILLION OR 110 A SHARE 9402070129 940207 PEPSICO COKE MOVE FAST ON VIETNAM PRODUCTION A WALL STREET JOURNAL NEWS ROUNDUP PEPSICO INC BEGAN SOFTDRINK PRODUCTION IN HO CHI MINH CITY FRIDAY WITHIN HOURS OF PRESIDENT CLINTON'S LIFTING OF THE TRADE EMBARGO AGAINST VIETNAM WHILE COCACOLA CO IS BUSY PREPARING ITS FORMAL ENTRY INTO THAT COUNTRY PEPSICO THE PURCHASE NY BEVERAGE COMPANY PRODUCED 40000 BOTTLES FOR SAMPLING PURPOSES AND PLANS TO BE FULLY OPERATIONAL IN A WEEK A SPOKESMAN SAID THE PEPSICOLA INTERNATIONAL UNIT HAS SIGNED A PRELIMINARY AGREEMENT WITH ONE OF VIETNAM'S LARGEST BEVERAGE COMPANIES TO BOTTLE SOFT DRINKS IN THAT COUNTRY ALREADY PREPARED IS PEPSI'S FIRST TV COMMERCIAL AIMED AT THE VIETNAMESE MARKET PRODUCED BY OGILVY & MATHER A COKE OFFICIAL SAID PRODUCTION WOULD BEGIN AS SOON AS CONCENTRATE AND OTHER NECESSARY MATERIALS CAN BE BROUGHT INTO THE COUNTRY COKE ALREADY ENJOYS WIDE DISTRIBUTION ON THE BLACK MARKET ATLANTABASED COKE AND SINGAPORE SOFTDRINKS COMPANY FRASER & NEAVE LTD FORMED A VENTURE IN MARCH WITH THAI PURE SOFT DRINKS LTD IN A MOVE TO TAP THE INDOCHINESE MARKET THE VENTURE WILL PRODUCE COKE AND OTHER SOFT DRINKS IN HO CHI MINH CITY AND HANOI 9402070128 940207 ITT SETS SPINOFF DATES NEW YORK ITT CORP SAID THE PREVIOUSLY ANNOUNCED SPINOFF OF ITS ITT RAYONIER TIMBER AND FOREST PRODUCTS UNIT WOULD BE DISTRIBUTED FEB 28 TO STOCK OF RECORD FEB 24 ITT SHAREHOLDERS WILL RECEIVE ONE RAYONIER INC SHARE FOR EACH FOUR SHARES HELD HOLDERS OF SERIES N PREFERRED STOCK WILL RECEIVE ONE RAYONIER SHARE FOR EACH 3159 SHARES HELD RAYONIER INC WILL TRADE ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL RYN ITT ALSO HAS INTERESTS IN INSURANCE FINANCIAL SERVICES AUTOMOTIVE PARTS HOTELS AND DEFENSE 9402070127 940207 INTERNATIONAL CHINA FINES BROKER IN FIRST CRACKDOWN ON INSIDER TRADING BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA CHINA HAS FINED A SECURITIES BROKERAGE HOUSE AND SUSPENDED ITS OPERATING LICENSE IN WHAT OFFICIALS CALLED THE COUNTRY'S FIRST CRACKDOWN ON INSIDER TRADING THE SHANGHAI BRANCH OF THE BROKERAGE HOUSE XIANGFAN CREDIT & INVESTMENT CO A UNIT OF THE AGRICULTURAL BANK OF CHINA USED ADVANCE KNOWLEDGE OF A CORPORATE RAID TO REAP PROFITS ON THE STOCK OF THE SHANGHAILISTED TARGET COMPANY ACCORDING TO FINDINGS BY THE BEIJINGBASED SECURITIES SUPERVISORY COMMITTEE THE FINDINGS WERE REPORTED IN THE WEEKEND EDITION OF THE SHANGHAI SECURITIES NEWS SHENZHENBASED BAO AN ENTERPRISES'S RAID ON SHANGHAI'S YANZHONG INDUSTRIAL WAS CHINA'S FIRST MARKET TAKEOVER ATTEMPT SINCE STOCK MARKETS WERE REVIVED IN 1991 THE ATTEMPT RESULTED IN THE FINING OF BAO AN WHICH WAS CITED FOR ACCUMULATING IN EXCESS OF 5 OF A LISTED COMPANY WITHOUT MAKING A DISCLOSURE SINCE THAT TIME CHINA HAS EXPERIENCED A RUSH OF CORPORATE RAIDS AT LEAST ONE OF WHICH RESULTED IN THE RAIDER GAINING A DEGREE OF MANAGEMENT CONTROL OVER THE TARGET COMPANY THE SECURITIES SUPERVISORY COMMITTEE PRESENTED THE PUNISHMENT OF XIANGFAN AS THE FIRST STEP IN A CONTINUING INVESTIGATION OF TRADES RELATED TO THE BAO ANYANZHONG INCIDENT AND SUGGESTED THAT THE INVESTIGATION MAY REVEAL OTHER VIOLATORS OFFICIALS OF XIANGFAN COULD NOT BE REACHED FOR COMMENT OVER THE WEEKEND INVESTORS IN CHINA'S DOMESTIC ASHARE STOCK MARKETS FREQUENTLY COMPLAIN THAT INSIDER TRADING RUNS RAMPANT AMONG BUSINESS LEADERS GOVERNMENT OFFICIALS AND BROKERS WHO HAVE ACCESS TO UNDISCLOSED INFORMATION ABOUT REGULATORY POLICIES AND CORPORATE ANNOUNCEMENTS PARTLY FOR THAT REASON INVESTORS HAVE TURNED SOUR ON MANY ASHARE FIRMS LEAVING THE MARKET IN THE DOLDRUMS FOR THE BETTER PART OF A YEAR XIANGFAN MADE 167 MILLION YUAN 19 MILLION IN PROFITS BY BUYING YANZHONG STOCK BEFORE THE TAKEOVER ATTEMPT AND THEN UNLOADING AT THE HEIGHT OF FURIOUS BUYING BY SPECULATORS THE SUPERVISORY COMMITTEE SAID TO FINANCE THE STOCK PURCHASES THE FIRM USED 67 MILLION YUAN OF CASH DEPOSITS OF INVESTORS IT REPRESENTS VIOLATING ANOTHER REGULATION AGAINST INTERMINGLING OF AGENT AND CLIENT TRADES UNDER THE RULING ALL OF XIANGFAN'S RELATED TRADING PROFITS WERE CONFISCATED THE FIRM WAS FINED AN ADDITIONAL TWO MILLION YUAN AND THE SHANGHAI OFFICE OF THE COMPANY WILL BE EFFECTIVELY SHUT DOWN FOR TWO MONTHS THE FIRM MUST ALSO SELL OFF THE 5300 YANZHONG SHARES IT STILL HOLDS DURING THE NEXT THREE TRADING SESSIONS TURNING OVER ANY PROFIT TO THE STATE TREASURY 9402070126 940207 CENTEX CORP PLANS TO SELL 51 INTEREST IN CONSTRUCTION UNIT DALLAS CENTEX CORP SAID IT PLANS TO SELL A 51 STAKE IN ITS CONSTRUCTION PRODUCTS SUBSIDIARY THROUGH AN INITIAL PUBLIC OFFERING THAT IS EXPECTED TO RAISE AS MUCH AS 1734 MILLION CENTEX ONE OF THE NATION'S LARGEST HOME BUILDERS SAID IT WILL USE PROCEEDS TO REDUCE DEBT THE UNIT CENTEX CONSTRUCTION PRODUCTS INC MAKES CEMENT READYMIX CONCRETE AND GYPSUM WALLBOARD CENTEX CORP SAID THE MOVE IS DESIGNED TO MAKE IT EASIER FOR THE CONSTRUCTION PRODUCTS OPERATION TO RAISE CAPITAL AND MAKE ACQUISITIONS WE LIKE THE BUSINESS AND WE WANT TO EXPAND IT SAID LAURENCE E HIRSCH CENTEX CORP'S CHAIRMAN AND CHIEF EXECUTIVE THE CASH INFUSION MEANWHILE WILL HELP PROTECT CENTEX CORP AGAINST A POSSIBLE DOWNTURN IN THE REAL ESTATE MARKET MR HIRSCH SAID WHILE THE COMPANY HAS BEEN RIDING HIGH BECAUSE OF LOW INTEREST RATES AND THE HOUSING REBOUND WE'RE IN THE REAL ESTATE BUSINESS AND PREPARING FOR CYCLES HE SAID CENTEX CONSTRUCTION PRODUCTS HAS BENEFITED OF LATE FROM HIGHER CEMENT AND GYPSUM PRICES AND THE UNIT'S LOSSPLAGUED NEW MEXICO GYPSUM OPERATION IS NOW PROFITABLE ANALYSTS SAID IT'S A BUSINESS THAT TURNED THE CORNER ABOUT A YEAR AGO SAID LAWRENCE J HORAN OF PRUDENTIAL SECURITIES RESEARCH INC CURRENT MANAGEMENT WILL CONTINUE TO RUN CENTEX CONSTRUCTION PRODUCTS THE COMPANY SAID AND MR HIRSCH WILL BE CHAIRMAN OF THE AFFILIATE THE INITIAL PUBLIC OFFERING OF 102 MILLION SHARES EXPECTED TO BE PRICED BETWEEN 15 AND 17 A SHARE WILL BE MANAGED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP DILLON READ & CO AND LEHMAN BROTHERS 9402070125 940207 TECHNOLOGY & HEALTH PEROT AND ORGANIZATION INTEND TO TAKE MORE ACTIVE ROLE ON HEALTHCARE REFORM BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT AND HIS FOLLOWERS HAVE SERVED NOTICE THAT THEY INTEND TO TAKE A MORE ACTIVE ROLE IN THE DEBATE OVER HEALTHCARE REFORM AND NOT IN A WAY THAT WILL HELP PRESIDENT CLINTON'S PROPOSALS HEALTH CARE WHICH HASN'T GENERALLY BEEN A PRIMARY ISSUE FOR MR PEROT AND HIS FOLLOWERS APPEARED TO RISE IN PROMINENCE AT A WEEKEND CONVENTION OF MR PEROT'S POLITICAL ORGANIZATION UNITED WE STAND AMERICA IN PARTICULAR MR PEROT AND HIS GROUP'S STATE LEADERS GAVE A WARM RECEPTION TO REP JIM COOPER D TENN COAUTHOR OF A MORE MODERATE HEALTHCARE PLAN THAT HAS EMERGED AS THE CHIEF ALTERNATIVE TO THE CLINTON PROPOSAL AFTER MR COOPER'S PRESENTATION MR PEROT SAID HIS ORGANIZATION ISN'T YET ENDORSING ANY HEALTH PLAN BUT SAID THAT THE GROUP MAY ENDORSE THE COOPER APPROACH DOWN THE ROAD AND HE OFFERED NOTHING BUT CRITICAL COMMENTARY ON THE CLINTON PLAN GOVERNMENT TAKES OVER THE HEALTHCARE SYSTEM UNDER THE CLINTON PROGRAM MR PEROT ASSERTED PERHAPS MORE IMPORTANT MR PEROT TOLD THE STATE CHAIRMEN OF HIS ORGANIZATION I WOULD URGE YOU TO MAKE THIS A KEY ISSUE WITH FOLLOWERS AROUND THE COUNTRY MR PEROT SPEAKING AT THE UNITED WE STAND GATHERING IN DALLAS PREDICTED THERE WILL BE A RAGING DEBATE AMONG OUR PEOPLE OVER PRECISELY WHAT POSITION TO TAKE ON HEALTH CARE EVEN BEFORE THIS WEEKEND'S ACTIVITIES UNITED WE STAND LEADERS HAD SET UP WORKING GROUPS TO STUDY HEALTHCARE REFORM IN EVERY STATE SAID A SPOKESWOMAN AND VIDEOTAPES OF THE COOPER PRESENTATION ARE TO BE DISTRIBUTED AMONG THE STATE UNITED WE STAND CHAPTERS MR PEROT SAID STILL THERE IS SOME UNCERTAINTY WITHIN THE PEROT ORGANIZATION ABOUT HOW DEEPLY IMMERSED TO BECOME IN THE HEALTHCARE DEBATE SOME OF MR PEROT'S FOLLOWERS PREFER TO STICK TO THE CORE PEROT AGENDA OF DEMANDING VARIOUS REFORMS OF THE WAY GOVERNMENT DOES BUSINESS SUCH AS TERM LIMITS FOR MEMBERS OF CONGRESS A LINEITEM VETO TO CUT SPENDING A BALANCED BUDGET AMENDMENT AN END TO POLITICAL ACTION COMMITTEE DONATIONS AND AN OVERHAUL OF CAMPAIGN FINANCE AND LOBBYING RULES WHITE HOUSE OFFICIALS HAVE SUSPECTED THAT MR PEROT WOULD CHOOSE TO KEEP A LOW PROFILE ON HEALTHCARE ARGUING THAT HIS CREDIBILITY IS SUSPECT ON THE ISSUE THEY HAVE ARGUED THAT IF HE WERE TO STRIKE A HIGH PROFILE HIS OBJECTIVITY WOULD BE QUESTIONABLE BOTH BECAUSE HE RAN A LARGE DATAPROCESSING BUSINESS THAT MADE MILLIONS OF DOLLARS HANDLING HEALTHCARE CLAIMS FOR STATE GOVERNMENTS AND BECAUSE THE PUBLIC GENERALLY TENDS TO DISTRUST THE VIEWS OF BIGBUSINESS MEN ON HEALTHCARE REFORM THE ADMINISTRATION IS LIKELY TO TRY TO FUEL THOSE DOUBTS IF MR PEROT BECOMES VERY VOCAL ON THE HEALTH QUESTION THE KEY QUESTION ABOUT MR PEROT AND HIS FOLLOWERS MAY TURN OUT TO BE HOW THEY HANDLE THE HEALTHCARE QUESTION IN THE 435 RACES FOR SEATS IN THE HOUSE THIS FALL BECAUSE OF ITS STATUS AS A TAXEXEMPT ORGANIZATION THE PEROT ORGANIZATION CAN'T ENDORSE CANDIDATES BUT MR PEROT AND HIS FOLLOWERS MAY CHOOSE TO STAGE DEBATES AND OPEN MEETINGS AND CIRCULATE MATERIALS TO FOCUS ATTENTION ON LAWMAKERS' VIEWS AND VOTES OF WHICH THEY DISAPPROVE AT THE CLOSE OF ITS WEEKEND CONFERENCE THE UNITED WE STAND ORGANIZATION NAMED HEALTH CARE AS ONE OF 11 PRIORITY ISSUES ITS MEMBERS INTEND TO FOCUS ON THIS YEAR 9402070124 940207 THE ECONOMY NOTHING TO BOAST ABOUT BY DANIEL J MITCHELL THE CLINTON ADMINISTRATION RELEASES ITS BUDGET TODAY BASKING IN THE GLOW OF FAVORABLE NEWS COVERAGE THE ECONOMY IS GROWING THE BUDGET DEFICIT IS FALLING THE STOCK MARKET IS RISING AND INTEREST RATES REMAIN AT NEARRECORD LOWS WHILE MANY PUNDITS ARE SWALLOWING THIS STORY HOOK LINE AND SINKER A MORE OBJECTIVE ANALYSIS INDICATES THAT MR CLINTON'S POLICIES HAVE HINDERED THE ECONOMY'S PERFORMANCE ECONOMIC GROWTH AND JOB CREATION DESPITE RECENT UPTICKS ARE BOTH LAGGING FAR BEHIND HISTORICAL TRENDS PROJECTED BUDGET DEFICITS OF LESS THAN 200 BILLION MEANWHILE TURN OUT TO BE NOTHING MORE THAN ROSY ESTIMATES FOR FUTURE YEARS THE ADMINISTRATION MEASURES SUCCESS BY COMPARING HOW THE ECONOMY PERFORMS TODAY WITH HOW IT DID UNDER MR BUSH WHILE THIS IS DOUBTLESSLY AN ASTUTE POLITICAL STRATEGY AND IS ALMOST SURE TO YIELD A FAVORABLE COMPARISON IT IS IRRELEVANT SINCE THE ECONOMIC POLICIES OF BOTH MR CLINTON AND HIS PREDECESSOR ARE ALMOST IDENTICAL THE REAL QUESTION IS WHETHER MR CLINTON'S RECORD 262 BILLION TAX INCREASE IS CAUSING THE ECONOMY TO GROW FASTER OR SLOWER THAN IT WOULD HAVE GROWN IF THE TAX BILL WAS REJECTED ARE MORE JOBS BEING CREATED AS A RESULT IF THE BUDGET DEFICIT IS REALLY FALLING SHOULD LAST YEAR'S BUDGET BILL GET THE CREDIT THE WHITE HOUSE JUSTIFIES LAST YEAR'S TAX INCREASE BY TRUMPETING PROJECTIONS SHOWING THAT THE BUDGET DEFICIT MAY SHRINK TO UNDER 200 BILLION IN 1995 MORE SOBER ANALYSIS SUGGESTS THE OUTLOOK MAY NOT BE SO ROSY THE 1995 FISCAL YEAR DOES NOT EVEN BEGIN UNTIL OCT 1 OF THIS YEAR AND HISTORY CLEARLY INDICATES THAT PROMISES OF FUTURE DEFICIT REDUCTION ARE NEBULOUS AT BEST SUPPORTERS OF THE 1990 BUDGET DEAL FOR INSTANCE FALSELY ALLEGED THAT THE BUDGET WOULD HAVE A SURPLUS OF MORE THAN 16 BILLION THIS YEAR IF MR BUSH'S TAX INCREASE WERE ENACTED CONGRESS DUTIFULLY APPROVED THE TAX BILL YET THE BUDGET DEFICIT IS PROJECTED TO EASILY EXCEED 200 BILLION THIS YEAR SIMILARLY THE DEFICIT ROSE AFTER TAX INCREASES WERE APPROVED IN 1982 1984 AND 1987 WITH ANY LUCK HISTORY WILL NOT REPEAT ITSELF THIS TIME AND THE DEFICIT WILL COME DOWN CONSIDERING THAT THE BUDGET DEFICIT WAS 150 BILLION AND FALLING WHEN PRESIDENT REAGAN LEFT OFFICE MORE THAN FIVE YEARS AGO ANY PROGRESS WILL BE WELCOME NEWS TO LONGSUFFERING TAXPAYERS IT MAY BE TOO SOON HOWEVER TO BREAK OUT THE CHAMPAGNE EVEN IF THE DEFICIT DOES FALL IN 1995 AND 1996 AS THE ADMINISTRATION AND THE CONGRESSIONAL BUDGET OFFICE ESTIMATE THE GOOD NEWS IS ONLY TEMPORARY ACCORDING TO THE CBO THE DEFICIT BEGINS TO CLIMB RAPIDLY AFTER 1996 BY THE YEAR 2003 THE BUDGET DEFICIT MORE THAN DOUBLES CLIMBING TO A RECORD 324 BILLION AND WITH UNPUBLISHED ADMINISTRATION FIGURES SHOWING THAT HEALTH CARE COULD BOOST ANNUAL BUDGET DEFICITS BY NEARLY 200 BILLION BY THE TURN OF THE CENTURY THE FISCAL SITUATION COULD DETERIORATE EVEN MORE RAPIDLY THE MAJOR REASON DEFICITS ARE EXPECTED TO EXPLODE IS THE UNCONSTRAINED GROWTH OF DOMESTIC SPENDING ACCORDING TO THE CBO TOTAL GOVERNMENT SPENDING WILL INCREASE BY 328 BILLION IN FIVE YEARS UNDER PRESIDENT CLINTON'S BUDGET AN ASTOUNDING 973 OF THAT INCREASE IS DUE TO HIGHER DOMESTIC SPENDING INDEED THE CBO PROJECTS THAT DOMESTIC SPENDING WILL GROW MORE THAN 91 FASTER THAN NEEDED TO KEEP PACE WITH INFLATION THIS VERITABLE ORGY OF NEW SPENDING EXPOSES THE FAILURE TO IMPOSE ANY SPENDING DISCIPLINE IN LAST YEAR'S BUDGET DEAL WASHINGTONBASED INTEREST GROUPS OFTEN PERSUADE REPORTERS TO WRITE ABOUT TIGHT SPENDING CAPS BUT THE CAPS DO NOT APPLY TO ENTITLEMENT PROGRAMS AND SOCALLED DOMESTIC DISCRETIONARY PROGRAMS ARE GROWING THANKS TO UNPRECEDENTED RAIDS ON THE DEFENSE BUDGET IN ADDITION TO PAINTING A ROSY PICTURE OF THE BUDGET DEFICIT THE ADMINISTRATION ALSO TALKS AS IF THE ECONOMY WERE BOOMING UNFORTUNATELY THE NUMBERS DO NOT ADD UP THE ECONOMY DID GROW AT AN ANNUAL RATE OF 59 IN THE LAST THREE MONTHS OF 1993 BUT EVEN WITH THIS LATE SURGE GROWTH FOR THE YEAR WAS JUST 28 REPUBLICANS AND DEMOCRATS ARE ARGUING WHETHER THIS MEANS MR CLINTON'S FIRST YEAR WAS BETTER THAN MR BUSH'S LAST YEAR BUT BOTH ARE MISSING THE POINT THE LEVEL OF GROWTH IN BOTH 1992 AND 1993 WAS FAR FROM ROBUST THE ECONOMY'S PERFORMANCE TODAY IS PARTICULARLY DISCOURAGING SINCE ECONOMIC GROWTH FOLLOWING A RECESSION IS NORMALLY WELL ABOVE THE HISTORICAL AVERAGE AVERAGING MORE THAN 5 A YEAR YET GROWTH IN MR BUSH'S LAST YEAR AND MR CLINTON'S FIRST YEAR HAS FAILED TO EVEN REACH THE LONGTERM AVERAGE OF 3 INDEED AN ANALYSIS OF ECONOMIC GROWTH RATES 11 QUARTERS INTO A RECOVERY WHICH IS HOW LONG THE CURRENT EXPANSION HAS LASTED SHOWS THAT GROWTH HAS BEEN BARELY HALF THE LEVEL EXPERIENCED DURING PAST EXPANSIONS THE SAME ANALYSIS APPLIES TO THE JOB MARKET AT THIS STAGE IN AN ECONOMIC EXPANSION 33 MONTHS AFTER THE NADIR OF THE RECESSION TOTAL EMPLOYMENT TRADITIONALLY HAS INCREASED BY AN AVERAGE OF 92 EVEN INCLUDING THE 16 MILLION JOBS CREATED LAST YEAR TOTAL EMPLOYMENT HAS CLIMBED BY JUST 25 SINCE THE BOTTOM OF THE RECESSION FAR BELOW THE AVERAGE THE ADMINISTRATION ALSO IS TRYING TO TAKE CREDIT FOR LOW INTEREST RATES ACCORDING TO THE WHITE HOUSE LAST YEAR'S RECORD TAX INCREASE CONVINCED FINANCIAL MARKETS THAT WASHINGTON WAS FINALLY SERIOUS ABOUT DEFICIT REDUCTION WHILE THE ADMINISTRATION'S POLITICAL STRATEGY IS SOUND ITS ECONOMIC ANALYSIS IS NOT INTEREST RATES HAVE BEEN FALLING STEADILY SINCE 1989 MOREOVER INTEREST RATES DURING THAT TIME FELL EVEN THOUGH THE BUDGET DEFICIT WAS NEARLY DOUBLING THE FEDERAL RESERVE BOARD'S ANTIINFLATION POLICY UNDER ALAN GREENSPAN'S LEADERSHIP IS THE REAL REASON INTEREST RATES ARE AT NEARRECORD LOWS THE ECONOMIC AND BUDGET OUTLOOK AFTER THE PRESIDENT'S FIRST YEAR IN OFFICE LEAVES MUCH TO BE DESIRED MR CLINTON CAMPAIGNED AS THE CANDIDATE OF CHANGE BUT HE HAS FAILED TO REVERSE MR BUSH'S DISASTROUS TAXANDSPEND POLICIES INSTEAD HE COMPOUNDED THE DAMAGE BY IMPOSING A RECORD TAX INCREASE OF HIS OWN THE ECONOMY'S CONTINUED SLOW GROWTH AND ANEMIC LEVELS OF JOB CREATION ARE A DIRECT RESULT MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON 9402070123 940207 WHO'S NEWS VERTEX PHARMACEUTICALS INC VERTEX PHARMACEUTICALS INC DONALD R CONKLIN PRESIDENT OF SCHERINGPLOUGH PHARMACEUTICALS A UNIT OF SCHERINGPLOUGH CORP AND BARRY M BLOOM RETIRED EXECUTIVE VICE PRESIDENT FOR RESEARCH AT PFIZER INC WERE NAMED DIRECTORS OF THIS BIOTECHNOLOGY COMPANY MR CONKLIN IS ALSO A DIRECTOR OF SCHERING THE NEW APPOINTMENTS BY VERTEX INCREASE THE SIZE OF ITS BOARD TO SEVEN DIRECTORS 9402070122 940207 RALSTON PURINA TO HOLD PRICES IN TWO SECTORS PET FOODS BAKED GOODS ARE AFFECTED FIRM SEES TEMPORARY PROFIT DROP BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS RALSTON PURINA CO PLANS TO HOLD THE LINE ON PRICES FOR ITS PET FOODS AND BAKED GOODS BUT ANTICIPATES TEMPORARILY LOWER EARNINGS AS IT FIGHTS TO MAINTAIN MARKET SHARE IN THOSE CATEGORIES THE NATION'S LARGEST MAKER OF PET FOODS AND BAKED GOODS RALSTON SAID IT IS UNDERTAKING COMPREHENSIVE COSTREDUCTION EFFORTS THAT EVENTUALLY SHOULD IMPROVE PROFITABILITY IN THOSE BUSINESSES AS WELL AS IN ITS READYTOEAT CEREAL OPERATION THE LARGEST US MAKER OF PRIVATELABEL CEREALS RALSTON'S SENIOR MANAGEMENT ALSO SAID THE COMPANY'S PENDING SPINOFF OF ITS CEREAL BABY FOOD CRACKERS AND SKI RESORTS BUSINESSES SHOULD ENHANCE OPERATIONS FOR BOTH THAT GROUP TO BE CALLED RALCORP HOLDINGS AS WELL AS FOR PET FOODS CURRENTLY THERE IS NEGATIVE SYNERGY BETWEEN THOSE BUSINESSES ONE EXECUTIVE SAID SETTING A SOBER TONE FOR THE COMPANY'S CENTENNIAL CELEBRATION ANNUAL MEETING LAST THURSDAY WILLIAM P STIRITZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID RALSTON FINDS ITSELF IN A DIFFICULT AND DYNAMIC OPERATING ENVIRONMENT WHERE ALL THE COMPANY'S BUSINESSES FACE EXTREMELY COMPETITIVE CHALLENGERS AND IN SOME CASES FLAT TO DECLINING CONSUMPTION PATTERNS FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 RALSTON REPORTED EARNINGS OF 1337 MILLION COMPARED WITH A YEARAGO LOSS OF 814 MILLION AFTER ACCOUNTING CHARGES ON A 1 SALES INCREASE TO 22 BILLION RALSTON NO LONGER REPORTS PERSHARE EARNINGS AFTER SPLITTING ITS BUSINESSES INTO TWO OPERATING GROUPS LAST SUMMER ITS RALSTON PURINA GROUP WHICH INCLUDES PET AND HUMAN FOODS REPORTED EARNINGS OF 1334 MILLION OR 127 A SHARE COMPARED WITH PROFORMA EARNINGS BEFORE SPECIAL ITEMS OF 907 MILLION OR 82 CENTS A SHARE SALES ROSE TO 172 BILLION FROM 169 BILLION THE CONTINENTAL BAKING GROUP UNIT REPORTED QUARTERLY EARNINGS OF 200000 BUT A PERSHARE LOSS OF ONE CENT A SHARE ON A 26 SALES DECLINE TO 476 MILLION A YEAR AGO THE GROUP REPORTED PROFORMA EARNINGS BEFORE ITEMS OF 35 MILLION OR EIGHT CENTS A SHARE ACCORDINGLY CONTINENTAL DIRECTORS SUSPENDED THE COMPANY'S EIGHTCENTASHARE QUARTERLY DIVIDEND PET FOODS HAS EXPERIENCED LOWER OPERATING EARNINGS IN THE PAST TWO YEARS AND THE COMPANY SAID IT IS BUDGETING FOR EARNINGS DECLINES IN THE CURRENT FISCAL YEAR AS WELL LARGELY BECAUSE OF HIGHER RAWMATERIALS COSTS WHICH WE HAVE ELECTED NOT TO OFFSET BY PRICE INCREASES AT THE SAME TIME PETFOOD ADVERTISING WILL BE INCREASED 30 TO STIMULATE SALES THE COMPANY SAID STILL IT EXPECTS VOLUMES TO BE MARGINALLY BELOW A YEAR AGO W PATRICK MCGINNIS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RALSTON'S GROCERY PRODUCTS GROUP TOLD ANALYSTS AFTER THE ANNUAL MEETING THAT THE COMPANY BELIEVES HIGHER COMMODITY COSTS FOR PET FOODS IS AN ABERRATION SO IT'S BETTER OFF NOT TO TAKE PRICE INCREASES THAT COULD IMPACT VOLUMES THE COMPANY ALSO DISCLOSED FOR THE FIRST TIME THAT US PET FOODS REAPED OPERATING PROFIT OF 310 MILLION IN THE FISCAL YEAR ENDED LAST SEPT 30 WHILE ITS EVEREADY BATTERY CO UNIT REPORTED OPERATING EARNINGS OF 250 MILLION THERE WERE NO PRIORYEAR FIGURES FOR COMPARISON RALSTON PURINA'S BIGGEST PROBLEMS ARE AT ITS BAKING GROUP WHICH FINDS ITSELF IN A LOWGROWTH INDUSTRY FACING HIGH FIXED COSTS AND SIGNIFICANT EXCESS CAPACITY THE COMPANY SAID TO MAINTAIN MARKET SHARE BREAD PRICES WILL BE HELD AT FULLY COMPETITIVE LEVELS JAY W BROWN CONTINENTAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID COMPETITORS' PRICE DISCOUNT PROMOTIONS WILL BE MATCHED COMPLETELY AS NEEDED TO PROTECT VOLUMES MOREOVER THERE WILL BE NO BROADSCALE SNACKCAKE PRICE INCREASES IN THE NEAR FUTURE HE SAID TO STIMULATE BUSINESS CONTINENTAL HAS SIGNIFICANTLY INCREASED PROMOTIONAL SPENDING THEREBY SEVERELY DAMAGING PROFIT MARGINS 9402070121 940207 MESA SEES HIGHER GAS OUTPUT DALLAS MESA INC SAID IT EXPECTS NATURAL GAS PRODUCTION FROM THE HUGOTON FIELD IN SOUTHWEST KANSAS TO INCREASE BY 15 BILLION TO 20 BILLION CUBIC FEET OVER THE NEXT THREE YEARS BECAUSE OF CHANGES BY KANSAS REGULATORS FOR THIS YEAR MESA SAID IT PROJECTS PRODUCTION WILL EXCEED 70 BILLION CUBIC FEET OF EQUIVALENT NATURAL GAS COMPARED WITH 57 BILLION LAST YEAR WITH MORE THAN HALF OF IT ATTRIBUTABLE TO THE REGULATORY CHANGES THE KANSAS CORPORATION COMMISSION RECENTLY APPROVED REVISIONS THAT PERMIT GAS PRODUCERS WITH SECOND INFILL WELLS TO PUMP 30 MORE GAS THAN THOSE WHO DON'T HAVE SUCH WELLS MESA HAS MORE THAN 381 INFILL WELLS IN THE HUGOTON FIELD MORE THAN ANY OTHER PRODUCER THERE 9402070120 940207 SALES OF IMPORTED AUTOS IN JAPAN SURGED IN MONTH SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN JUMPED 34 IN JANUARY TO 12156 UNITS FROM A YEAR EARLIER THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION REPORTED A SPOKESMAN FOR THE ASSOCIATION SAID THE SALES FIGURE FOR JANUARY WAS THE LARGEST EVER FOR IMPORTED CARS BY ORIGIN SALES OF VEHICLES FROM EVERY MAJOR EXPORTER EXCEPT FRANCE INCREASED HE ATTRIBUTED THE SHARP YEARONYEAR INCREASE MOSTLY TO PRICE CUTS BY MANY MAKERS REFLECTING THE APPRECIATION OF THE YEN AGAINST THE US DOLLAR AND OTHER CURRENCIES THE INTRODUCTION OF NEW MODELS FOR 1994 ALSO CONTRIBUTED TO THE RESULTS SALES OF CARS MADE BY OVERSEAS SUBSIDIARIES OF JAPANESE AUTO MAKERS FELL 42 TO 1056 UNITS CARS MADE BY CHRYSLER CORP SHOWED A PARTICULARLY STEEP INCREASE HELPED BY JEEP CHEROKEE SALES SALES OF GERMANY'S MERCEDESBENZ CARS ROSE 52 TO 1914 UNITS FOLLOWING THE INTRODUCTION IN OCTOBER OF THE C CLASS ENTRY MODEL 9402070119 940207 ECONOMY AGENCY PREDICTS BIGGER DEMAND FOR PETROLEUM OECD AFFILIATE INCREASES WORLDWIDE ESTIMATE FOR THE FIRST QUARTER BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE INTERNATIONAL ENERGY AGENCY IN ITS FIRST BULLISH NOTE FOR OIL MARKETS IN MONTHS REVISED UPWARD ITS FORECAST OF WORLD PETROLEUM DEMAND FOR THE FIRST QUARTER THE PARISBASED AGENCY NOW ESTIMATES FIRSTQUARTER OIL DEMAND WILL AVERAGE 687 MILLION BARRELS A DAY THAT IS SHARPLY HIGHER THAN OIL CONSUMPTION OF 683 MILLION BARRELS A DAY IN THE YEAREARLIER PERIOD AND ALSO IS 200000 BARRELS A DAY MORE THAN THE IEA WAS FORECASTING ONLY A MONTH AGO FOR THE CURRENT QUARTER AN AFFILIATE OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE IEA MONITORS WORLD ENERGY DEVELOPMENTS FOR WESTERN OILCONSUMING NATIONS ITS ESTIMATES ARE USED FOR PLANNING PURPOSES BY BOTH OILCONSUMING AND OILPRODUCING NATIONS AND CAN HAVE A SIGNIFICANT IMPACT ON WORLD MARKETS OIL PRICES HAD PLUNGED BELOW 14 A BARREL TO FIVEYEAR LOWS LATE LAST YEAR AFTER NUMEROUS DOWNWARD REVISIONS IN THE IEA'S FORECASTS OF 1993 WORLD OIL DEMAND AND THE LATENOVEMBER REFUSAL OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT OUTPUT HELPED BY THE DRAIN ON SUPPLIES FROM THE FRIGID WEATHER GRIPPING MUCH OF THE US PETROLEUM PRICES HAVE RECOVERED SOMEWHAT SO FAR THIS YEAR RISING LAST WEEK TO THE HIGHEST LEVEL SINCE LATE NOVEMBER BUT ON FRIDAY CRUDE OIL PRICES DECLINED AGAIN DESPITE THE UPBEAT IEA REPORT ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR MARCH DELIVERY FELL 26 CENTS TO SETTLE AT 1563 A BARREL IN ITS MONTHLY OIL MARKET REPORT RELEASED FRIDAY THE IEA CITED ABNORMALLY COLD WEATHER IN THE US AS WELL AS UNEXPECTEDLY STRONG DELIVERIES OF FUELS IN JAPAN AMONG REASONS FOR THE UPWARD DEMAND REVISIONS THE AGENCY NOTED IT ALSO INCREASED RETROACTIVELY PRIOR ESTIMATES OF OIL USE IN THE 1993 FOURTH QUARTER BUT THE IEA REDUCED SLIGHTLY THE EARLIER ESTIMATES OF WORLD OIL DEMAND FOR THE FINAL THREE QUARTERS OF 1994 THAT LEFT UNCHANGED ITS PREVIOUS PROJECTION OF 676 MILLION BARRELS FOR THE ENTIRE YEAR ON THE SUPPLY SIDE THE IEA SAID OPEC'S JANUARY CRUDE OIL OUTPUT REMAINED IN A RANGE BETWEEN 247 MILLION AND 248 MILLION BARRELS A DAY FOR THE THIRD CONSECUTIVE MONTH THAT IS HIGHER THAN THE PRODUCTION CEILING OF 245 MILLION BARRELS A DAY BUT IS IN LINE WITH REQUIREMENTS FOR OPEC'S OIL AS INDICATED BY THE IEA FIGURES ALTHOUGH THE IEA TAKES INTO ACCOUNT PAST PRODUCTION IT DOESN'T FORECAST FUTURE OPEC OUTPUT BUT THE IEA'S LATEST ASSESSMENTS OF WORLD OIL USE IMPLY THAT MUCH MORE OPEC OIL IS NEEDED DURING THE CURRENT QUARTER THAN INDICATED BY EARLIER DEMAND ESTIMATES BASED ON THE IEA REPORT 255 MILLION BARRELS A DAY OF CRUDE OIL WILL BE REQUIRED FROM OPEC AND FROM WITHDRAWALS FROM WORLD INVENTORIES FOR THE 1994 FIRST QUARTER FOR THE SEASONALLY WEAK SECOND QUARTER HOWEVER THE IEA'S FIGURES SUGGEST THAT THE NEED FOR OPEC OIL EVEN ASSUMING NO WITHDRAWALS FROM INVENTORIES WOULD DROP TO 233 MILLION BARRELS A DAY NORMALLY OIL COMPANIES DRAW DOWN THEIR INVENTORIES DURING THE PEAK DEMAND PERIOD OF WINTER AND THEN REBUILD THEM IN THE SECOND AND THIRD QUARTERS 9402070118 940207 CREDIT MARKETS FED DECLARES PSYCHOLOGICAL WAR' ON INFLATION LITTLE CHANGE FOR ECONOMY SEEN BY SOME BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL RESERVE IS TRYING TO SCARE INFLATION AWAY BUT WILL IT WORK THAT'S THE QUESTION ECONOMISTS AND BOND INVESTORS ARE PONDERING IN THE WAKE OF THE FED'S DECISION FRIDAY TO RAISE SHORTTERM INTEREST RATES FOR THE FIRST TIME IN NEARLY FIVE YEARS BECAUSE THE FED BARELY NUDGED UP THE RATE AT WHICH BANKS LEND EACH OTHER MONEY TO 325 FROM 3 THERE WON'T BE ANY SIGNIFICANT IMPACT ON THE ECONOMY MOST ECONOMISTS AGREE THEY SAY THE FED IS WAGING A PSYCHOLOGICAL WAR BY JUMPING IN BEFORE PRICE INFLATION HAS EVEN BEGUN TO ACCELERATE THE FED IS TRYING TO CONVINCE INVESTORS THAT IT ISN'T ASLEEP AT THE WHEEL AS SOME CRITICS HAVE BEEN SAYING RECENTLY SAID ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS BOND INVESTORS FEAR INFLATION BECAUSE IT MEANS A FIXED INCOME BUYS LESS AT THE GROCERY STORE A CASE CAN BE MADE THAT THE FED'S PREEMPTIVE STRIKE WILL BE GOOD FOR BOND PRICES BUT ON FRIDAY INVESTORS RECOILED THE PRICE OF THE BENCHMARK 30YEAR BOND SANK 5/8 POINT OR 625 FOR A BOND WITH A 1000 VALUE THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 635 FROM 631 ON THURSDAY TREASURYS WITH SHORTER MATURITIES WERE EVEN HARDER HIT THE BONDEQUIVALENT YIELD ON THE SIXMONTH BILL FOR EXAMPLE JUMPED MORE THAN 011 PERCENTAGE POINT TO 347 THE HIGHEST LEVEL IN NEARLY 14 MONTHS IF THE FED SUCCEEDS IN REDUCING INFLATION FEARS LONGTERM BOND YIELDS COULD DROP ONCE AGAIN PERHAPS EVEN AS LOW AS 55 SAYS MR GIORDANO BUT EVEN HE SAYS THAT THIS MOVE WOULD BE TEMPORARY MORE LIKELY IS THAT LONGTERM YIELDS WILL BE LITTLE CHANGED OR PERHAPS SLIGHTLY HIGHER BY THE END OF THIS YEAR SAYS WILLIAM GROSS A MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT OF NEWPORT BEACH CALIF MR GROSS IS ONE OF THE NATION'S MOST CLOSELY WATCHED AND RESPECTED BONDFUND MANAGERS BECAUSE OF THE HUGE AMOUNT OF BOND ASSETS HIS FIRM CONTROLS OVER 40 BILLION AND HIS SUCCESSES THROUGH BULL AND BEAR MARKETS THE FED'S DECISION TO RAISE RATES PROBABLY SIGNALS AN END TO THE BULLBOND MARKET OF RECENT YEARS SAYS MR GROSS THIS WAS PROBABLY THE OFFICIAL SEAL THAT SIGNALS THE GOOD TIMES ARE OVER HE ADDS AT THIS STAGE IN AN ECONOMIC RECOVERY AND WITH THE FED RAISING SHORTTERM INTEREST RATES IT WOULD BE VERY UNUSUAL FOR LONGTERM BOND YIELDS TO DROP VERY MUCH SAYS MR GROSS WHAT'S MORE LIKELY IS THAT SHORTTERM RATES WILL GO UP A LOT AND LONGTERM RATES WILL GO UP LESS OR CHANGE LITTLE HE SAYS LONGTERM YIELDS ARE CRUCIAL FOR EVERYONE FROM HOMEOWNERS TO BUSINESSES THAT NEED TO BORROW THERE IS LITTLE DISAGREEMENT ON WHERE SHORTTERM INTEREST RATES WILL BE GOING OVER THE NEXT YEAR UP THE ONLY QUESTION IS HOW FAR THEY WILL RISE AND HOW FAST MR GIORDANO EXPECTS A RISE IN THE SOCALLED FEDERALFUNDS RATE AT WHICH BANKS LEND EACH OTHER MONEY OF 1/4 TO 1/2 POINT OVER THE NEXT YEAR WHILE MR GROSS SAYS THE RISE COULD BE 1/2 TO 3/4 POINT THE FEDERALFUNDS RATE IS WHAT THE FED BOOSTED FRIDAY THE FED'S HIGHLY UNUSUAL ANNOUNCEMENT OF ITS INTENTION TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS AND BOOST THE FEDERALFUNDS RATE WAS PARTLY A RESPONSE TO INVESTOR CONFUSION AND PARTLY A RESPONSE TO RECENT DEMANDS BY MEMBERS OF CONGRESS FOR MORE DISCLOSURE OF FED ACTIVITY ON THURSDAY THE FED FAILED TO INJECT MORE RESERVES INTO THE BANKING SYSTEM AS HAD BEEN EXPECTED AND ALLOWED THE FUNDS RATE TO RISE SLIGHTLY BUT IT WASN'T CLEAR WHETHER THE FED WAS ACTUALLY TIGHTENING SINCE THE RATE INCREASE WAS SO SLIGHT FRIDAY'S ANNOUNCEMENT HELPED CLEAR THE AIR LATER IN THE DAY A FED SPOKESMAN SAID THAT THE ANNOUNCEMENT WASN'T A PRECEDENT AND INVESTORS SHOULDN'T EXPECT THE FED TO CONTINUE SUCH SIGNALLING STILL INVESTORS FOUND SOMETHING ELSE TO FRET ABOUT FRIDAY HOW FAR DOES THE FED PLAN TO PUSH UP RATES BEFORE IT'S SATISFIED THAT INFLATIONARY PRESSURES HAVE BEEN ELIMINATED THE LAST TIME THE FED STARTED TO RAISE INTEREST RATES WAS IN THE LATE1980S AFTER INFLATION HAD ALREADY STARTED TO RISE IN ORDER TO MAKE UP FOR ITS TARDINESS IN RESPONDING THE FED HAD TO MOVE QUICKLY AND FAR BETWEEN MARCH 1988 AND MARCH 1989 THE MONTHLY AVERAGE OF THE FEDERALFUNDS RATE JUMPED MORE THAN 325 PERCENTAGE POINTS BUT WITH THE FED APPEARING TO BE AHEAD OF THE CURVE THIS TIME AROUND ECONOMISTS DON'T BELIEVE THAT SCENARIO IS LIKELY TO BE REPEATED THE FED IS VERY SENSITIVE TO SHIFTS IN EXPECTATIONS BECAUSE IT NEEDS TO MAINTAIN ITS CREDIBILITY SAYS MR GIORDANO THAT HAD A LOT TO DO WITH GOING AHEAD NOW AND RAISING RATES RATHER THAN WAITING A FEW MORE MONTHS HE EXPLAINS BUT INVESTORS WEREN'T CONVINCED THAT GRADUALISM WOULD BE ALAN GREENSPAN'S PLAN ACCORDING TO THE TRADING FOLLOWED BY GOVPX INC WHICH TRACKS THE TRADING OF TREASURYS VOLUME REACHED 123 BILLION ON FRIDAY THE HIGHEST SINCE GOVPX STARTED KEEPING TRACK OF VOLUME IN 1991 THE SECONDHIGHEST VOLUME DAY WAS THURSDAY AT 104 BILLION GOVPX OWNED BY A GROUP OF PRIMARY DEALERS IN THE TREASURY MARKET ESTIMATES THAT ITS NUMBERS COVER ABOUT 65 OF TRADING VOLUME IT WOULD BE TOO MUCH TO THINK THAT THE MARKET'S RESPONSE TODAY WOULD BE IN ANY WAY DEFINITIVE SAYS JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS THIS HAS TO BE VIEWED AS THE FIRST STEP ON A JOURNEY THAT IS GOING TO LAST SOME TIME HE EXPLAINED THE FED'S TASK IF IT IS SERIOUS ABOUT REACHING ITS GOAL OF PRICE STABILITY IMPLIES THAT ECONOMIC GROWTH WILL HAVE TO DECELERATE OVER THE COMING YEAR OR SO TO ABOUT A 25 ANNUAL RATE AS MEASURED BY THE GROSS DOMESTIC PRODUCT BUT OVER THE NEXT FEW MONTHS THE ECONOMIC DATA THAT WILL BE RELEASED AREN'T LIKELY TO BE FRIENDLY TO LONGTERM INTEREST RATES MR LIPSKY SAYS HE BELIEVES THE ECONOMIC DATA WILL CONTINUE TO TEST THE FED'S RESOLVE TO PUT OUT AN INFLATION SPARK BEFORE IT TURNS INTO A FIRE AS A RESULT OVER THE NEXT FEW MONTHS EXPECT TO SEE THE FED UNDERTAKING ADDITIONAL TIGHTENING MEASURES THE GOOD NEWS FOR INVESTORS IS THAT IF THE FED IS SUCCESSFUL LATER THIS YEAR WE SHOULD ACHIEVE A COMBINATION OF MODERATING ECONOMIC GROWTH STABLE INFLATION TIGHTENING FISCAL AND MONETARY POLICY AND WEAK ECONOMIC GROWTH ABROAD THE RESULT COULD BE A RETURN TO LOWER LONGTERM INTEREST RATES SAYS MR LIPSKY IN THE RANGE OF 55 TO 6 MR GIORDANO ALSO SAYS GRADUALISM WILL BE THE PATH THAT THE FED TAKES THE SITUATION IS VERY DIFFERENT FROM 1988 AND 1989 SAYS MR GIORDANO BECAUSE AT THAT TIME THE ECONOMY WAS AT VIRTUALLY FULL EMPLOYMENT AND THE FED WAS BEHIND THE CURVE IN GETTING RATES HIGHER TO RESTRAIN INFLATION BUT THE KEY TO ALLOWING INFLATIONARY PRESSURES TO EASE WHILE REFRAINING FROM STARTLING THE FINANCIAL MARKETS IS WHETHER THE FED IS ANY GOOD AT PLAYING THERAPIST TO THE MILLIONS OF STOCK AND BOND INVESTORS WITH FRAYED NERVES IF THE MARKET CONCLUDES THAT THE FEDERAL RESERVE IS IN FACT A STEP BEHIND INFLATION INSTEAD OF A STEP AHEAD LONGTERM RATES COULD RISE SHARPLY SAYS MR GIORDANO THE FEDERAL RESERVE'S MOVE TO TIGHTEN CREDIT AND TO PUBLICLY STATE THAT IT HAD DONE SO FRIDAY KNOCKED DOWN THE PRICES OF SECURITIES IN THE MORTGAGE CORPORATE AND MUNICIPAL MARKETS AS WELL THE POLICY CHANGE AND THE STATEMENT CONFIRMING IT UNNERVED MARKET PLAYERS AND LED TO CHAOTIC TRADING THE TIGHTENING CAME ABOUT THREE HOURS AFTER A WEAKERTHANEXPECTED JANUARY EMPLOYMENT REPORT HAD SQUELCHED EXPECTATIONS THAT ANY POLICY CHANGE WAS IMMINENT IT WAS HECTIC AND EXTREMELY VOLATILE PARTICULARLY AT THE LONG END OF TREASURY SECURITIES SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS FRIDAY'S SESSION BEGAN AMID EXPECTATIONS THAT A POLICY TIGHTENING WAS LIKELY SHOULD THE GOVERNMENT REPORT A LARGE JUMP IN MONTHLY NONFARM PAYROLLS FOR JANUARY BUT THE LABOR DEPARTMENT SAID NONFARM PAYROLL EMPLOYMENT ROSE JUST 62000 DURING JANUARY WELL BELOW FORECASTS CENTERING ON A GAIN OF ABOUT 200000 IN RESPONSE THE MARKET SURGED AS PLAYERS SCRAMBLED TO BUY BACK SECURITIES THEY HAD SOLD THURSDAY HOWEVER THOSE HIGHER LEVELS MERELY BROUGHT IN FRESH SELLING BY TRADERS LOOKING TO GET OUT OF LONG POSITIONS BY MIDMORNING THE MARKET HAD ERASED ALL OF ITS EARLY GAINS THE COUP DE GRACE FOR THE MARKET CAME WHEN THE FED ANNOUNCED SHORTLY AFTER 11 AM EST THAT IT HAD IN FACT DECIDED TO PUSH SHORTTERM RATES SLIGHTLY HIGHER PRICES PLUNGED SOON AFTER ALSO TO BLAME FOR THE LONGEND TROUBLES WERE CONCERNS ABOUT NEXT WEEK'S REFUNDING AUCTIONS AS WELL AS INFLATION FIGURES SCHEDULED TO BE RELEASED THIS WEEK THE THREEYEAR NOTE SLATED TO BE AUCTIONED TOMORROW YIELDED 476 LATE FRIDAY IN WHENISSUED TRADING WHILE THE 10YEAR NOTE TO BE AUCTIONED WEDNESDAY YIELDED 585 AND THE 30YEAR BOND YIELDED 637 IN MORTGAGE SECURITIES AS IN SOME OTHER MARKETS THE FED'S MOVE MAY HAVE DRAMATICALLY ALTERED PROSPECTS A MAJOR CONSEQUENCE IS THAT LONGTERM INTEREST RATES AREN'T SEEN LIKELY TO DECLINE MUCH REDUCING THE LIKELIHOOD THAT MORTGAGE RATES COULD DROP ENOUGH TO SPUR ANOTHER BURST OF HOMEMORTGAGE REFINANCINGS THIS WOULD SIGNIFICANTLY REDUCE THE RISK OF PREPAYMENTS ON MORTGAGE SECURITIES PREPAYMENTS ARE GOING TO BE SLOW SLOW SLOW SAYS DALE WESTHOFF VICE PRESIDENT OF THE MORTGAGERESEARCH DEPARTMENT AT BEAR STEARNS HE HAD ALREADY BEEN CALLING FOR A PREPAYMENT SLOWDOWN BUT FRIDAY'S EVENTS LED HIM TO REVISE HIS ESTIMATES DOWN EVEN FURTHER THE PROBABILITY IS LESS THAT WE'RE GOING TO BE HITTING NEW LOWS IN MORTGAGE RATES SO A RENEWED REFINANCING BOOM WON'T LIKELY OCCUR HE ADDS MUNICIPALBOND PRICES DROPPED AS MUCH AS 5/8 POINT HARRIS COUNTY TEXAS'S 500 COUPON BONDS DUE 2016 FINISHED 1/2 POINT LOWER AT 95 1/2 TO YIELD 531 COMPARED WITH 527 ON THURSDAY THE FED'S TIGHTENING MAY CAUSE SOME ISSUERS TO MOVE UP THE PRICINGS OF THEIR OFFERINGS MUNI SPECIALISTS SAY SEE RELATED ARTICLE ABREAST OF THE MARKET MOST EXPECT STOCK MARKET TO REBOUND WSJ FEB 7 1994 9402070117 940207 LAW LEGAL BEAT LIKE RECENT DISASTERS THE QUAKE IS EXPECTED TO SPAWN MANY SUITS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL EARTHQUAKES AND OTHER NATURAL DISASTERS ARE INCREASINGLY SPAWNING A FORMIDABLE AFTERSHOCK LAWSUITS ALTHOUGH SOCALLED ACTS OF GOD CERTAINLY CAN'T BE BLAMED ON HUMAN NEGLIGENCE LAWYERS SAY THAT THE RESULTING PROPERTY DAMAGE AND INJURIES OFTEN CAN LEAD TO LEGAL FINGERPOINTING ACTS OF GOD CAN BE ANTICIPATED SAID PHILIP H CORBOY A LEADING CHICAGO PERSONALINJURY LAWYER AND FORMER CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION YOU DON'T BUILD PAPIERMACHE HOUSES IN SAN FRANCISCO FOR EXAMPLE YOU CAN BE RESPONSIBLE NOT FOR THE ACT OF GOD BUT FOR PROTECTING FROM THE ACT OF GOD UNTIL RECENTLY BIG EARTHQUAKES RARELY RESULTED IN LAWSUITS SAID GARY T SCHWARTZ A LAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES WHO HAS STUDIED THE SUBJECT ONLY WITH MODERN CHANGES IN LIABILITY LAW AND PUBLIC LITIGIOUSNESS HAVE SUCH SUITS BECOME MORE COMMON PROF SCHWARTZ ADDED THE SAN FRANCISCO EARTHQUAKE OF 1989 SPAWNED AT LEAST 330 LAWSUITS BY DRIVERS ALLEGING THAT ROADS AND BRIDGES SHOULD HAVE BEEN STURDIER THE CASES WERE RESOLVED THROUGH A MASS SETTLEMENT IN WHICH THE STATE PAID 69 MILLION TO THE PLAINTIFFS THE ONE REMAINING SUIT BY A WOMAN WHO SAYS SHE HAS A PERMANENTLY FRACTURED LEG AND SEVERE POSTTRAUMATIC STRESS DISORDER IS SCHEDULED TO GO TO TRIAL IN MAY ALTHOUGH IT'S STILL TOO EARLY TO SPOT LITIGATION STEMMING FROM THE RECENT LOS ANGELES EARTHQUAKE THE LARGE NUMBER OF INSURANCE CLAIMS FILED SUGGESTS THAT LAWSUITS WILL BE PLENTIFUL THE STATE'S LARGEST INSURER STATE FARM MUTUAL AUTOMOBILE INSURANCE CO BLOOMINGTON ILL ALREADY HAS GOTTEN AT LEAST 74000 CLAIMS MORE THAN TWICE ITS TOTAL CLAIMS AFTER THE SAN FRANCISCO QUAKE BECAUSE FEW DRIVERS WERE ON THE ROADS DURING THE PREDAWN LOS ANGELES QUAKE LAWSUITS PROBABLY WILL FOCUS ON BUILDINGCONSTRUCTION DEFECTS PLAINTIFFS' LAWYERS SAID THAT MEANS LESS LIABILITY FOR THE STATE BUT MORE FOR HOME DEVELOPERS BUILDERS AND CONTRACTORS SOME LOS ANGELES CONSTRUCTIONDEFECT LAWYERS ARE WARMING UP TO THE TASK WITH ADVERTISEMENTS SOLICITING QUAKERELATED BUSINESS ONE SUCH ATTORNEY DANIEL G EPSTEIN IN IRVINE IS PITCHING THE NOTION THAT HOMEOWNERS ALSO CAN SUE FOR LATENT CONSTRUCTION PROBLEMS THAT THE EARTHQUAKE REVEALED THINGS LIKE PROBLEMS WITH FRAMING ABSENCE OF SHEER WALLS ABSENCE OF SHEER NAILING USUALLY YOU HAVE TO OPEN UP THE WALLS TO FIND THAT OUT MR EPSTEIN SAID BUT THE EARTHQUAKE DOES THAT FOR YOU ALTHOUGH MANY AREA RESIDENTS HAVE ALREADY CONTACTED LAWYERS ATTORNEYS HAVEN'T FILED MANY SUITS YET BECAUSE THEY NEED TO CONSULT WITH ARCHITECTS AND ENGINEERS TO SEE WHICH CLAIMS ARE VALID HE SAID LAWYERS ARE ALSO IN THE PROCESS OF NEGOTIATING WITH HOMEOWNERS' INSURERS THE INSURANCE INDUSTRY LARGELY DODGED ONE KIND OF CLAIM THAT'S USUALLY PREVALENT AFTER NATURAL DISASTERS WORKERS' COMPENSATION SUITS FILED BY INJURED EMPLOYEES BECAUSE OF THE DOUBLE FORTUITY THAT THE QUAKE OCCURRED BEFORE MOST PEOPLE'S COMMUTING HOURS ON A DAY IN WHICH MOST PEOPLE WERE OFF FROM WORK ANYWAY AS A RESULT OF MARTIN LUTHER KING'S BIRTHDAY INSURERS CAN EXPECT SOME LAWSUITS ARISING FROM COVERAGE DISPUTES BUT IT'S HARD TO PREDICT HOW EXTENSIVE A PROBLEM THAT WILL BE SAID JERRY PARSONS A STATE FARM SPOKESMAN ARCHITECTS AND DESIGNERS WHO GENERALLY CAN BE HELD LIABLE ONLY FOR BUILDINGS CONSTRUCTED WITHIN THE PAST 10 YEARS THAT DON'T COMPLY WITH INDUSTRY STANDARDS AREN'T EXPECTING TOO MANY QUAKERELATED SUITS SCHINNERER MANAGEMENT SERVICES INC A LEADING INSURER OF DESIGN PROFESSIONALS AND A UNIT OF MARSH & MCLENNAN COS NEW YORK FACED ONLY TWO LAWSUITS AND SEVEN CLAIMS AFTER THE SAN FRANCISCO EARTHQUAKE SAID SCHINNERER'S PRESIDENT PAUL L GENECKI HUMAN NATURE MAY COME INTO THIS HE SAID WHEN IT IS SO DEVASTATING WHEN IT IS SO MUCH AN ACT OF GOD THERE MAY BE MORE OF AN ACCEPTANCE THAT THIS IS JUST PART OF THE RISK YOU RUN NONETHELESS PLENTY OF PEOPLE SUED HOMEBUILDERS AFTER HURRICANE ANDREW SWEPT THROUGH FLORIDA IN 1992 MIAMIBASED LENNAR CORP THE STATE'S LARGEST DEVELOPER SPENT 24 MILLION LAST YEAR TO SETTLE TWO LAWSUITS ARISING FROM ALLEGED HURRICANE DAMAGE IN 350 HOMES THE COMPANY SAID IT DISAGREED WITH THE ALLEGATIONS IN THE SUITS ERVIN A GONZALEZ A MIAMI ATTORNEY HANDLING SEVERAL HURRICANE SUITS SAID HE HAS REACHED SETTLEMENTS IN SUITS INVOLVING MORE THAN 2500 HOMES FOR ALMOST 10 MILLION HE ALSO IS WORKING ON PENDING SUITS AGAINST TWO DEVELOPERS FLORIDA DEVELOPERS WON'T BE FULLY OUT OF THE WOODS UNTIL 1997 WHEN THE LAST OF HURRICANERELATED SUITS CAN BE FILED BUT ALLAN J PEKOR LENNAR'S FINANCIAL VICE PRESIDENT SAID HE DOESN'T EXPECT MUCH MORE LITIGATION THE HURRICANE LITIGATION IS LONG BEHIND US HE SAID IN THE MIDWEST ON THE OTHER HAND LAWSUITS FROM MISSISSIPPI FLOODING IN JULY AND AUGUST COULD TRICKLE IN FOR YEARS A LOT OF THE SUITS WILL BE FILED BY FARMERS ALLEGING THAT NEIGHBORING FARMERS FAILED TO STORE PESTICIDES ABOVE THE WATER LINE SAID DON C KEENAN AN ATLANTA LAWYER AND FORMER PRESIDENT OF THE AMERICAN BOARD OF TRIAL ADVOCATES LOS ANGELES THE LONGTERM DAMAGE THAT WAS DONE IS THE PESTICIDE COMMINGLING WITH WELL WATER CROPS AND HOMES SAID MR KEENAN WHOSE FIRM IS LOOKING INTO A HANDFUL OF POTENTIAL FLOODRELATED LAWSUITS THESE ARE THE KIND OF CASES THAT TAKE A LONG TIME TO INVESTIGATE THE MIDWEST FLOODS WILL GO ON INTO THE NEXT CENTURY I CAN ASSURE YOU HIS FIRM HASN'T FILED ANY FLOOD SUITS YET A 10YEAR STATUTE OF LIMITATIONS FOR PROPERTY DAMAGE ALLOWS LAWYERS TO CONTINUE THEIR INVESTIGATIONS FOR YEARS EVENTUALLY GOVERNMENT AGENCIES ALSO MIGHT BE SUED FOR ALLEGEDLY FAILING TO ERECT SOLID FLOOD BARRIERS AND TO WARN OF IMPENDING DISASTER BUT IN THE CASE OF FLOOD AT LEAST BUILDERS WILL ESCAPE MOST LITIGATION FRANKLY OTHER THAN NOAH NOBODY'S BEEN ABLE TO BUILD SOMETHING THAT'S GOING TO SURVIVE A MASSIVE FLOOD MR KEENAN SAID THE RECENT FREEZE IN THE NORTHEAST MEANWHILE IS ATTRACTING LITTLE INTEREST FROM INJURY LAWYERS IT'S POSSIBLE THAT MORE PEOPLE SLIPPED AND FELL LAST MONTH SAID NEW YORK ATTORNEY PAMELA A LIAPAKIS BUT SHE HASN'T HEARD OF ANY SPECIAL FREEZERELATED LITIGATION WE TRY TO KEEP TO THE MORE SERIOUS CASES SHE SAID A FEDERAL JUDGE DISMISSED INVENTOR ROBERT W KEARNS'S WINDSHIELDWIPER PATENT CLAIMS AGAINST 22 FOREIGNCAR COMPANIES A SIGNIFICANT SETBACK FOR MR KEARNS AFTER PREVIOUS VICTORIES AGAINST FORD MOTOR CO AND CHRYSLER CORP MR KEARNS CLAIMED IN HIS LAWSUIT THAT THE CAR COMPANIES INFRINGED HIS PATENTS ON THE INTERMITTENT WINDSHIELD WIPER IN DISMISSING THE CASE US DISTRICT JUDGE AVERN COHN OF DETROIT FOUND THAT MR KEARNS COULDN'T ADEQUATELY REPRESENT HIMSELF AND HAD REFUSED TO RETAIN A LAWYER THE JUDGE ALSO SAID IN HIS WRITTEN ORDER THAT DURING THE CASE MR KEARNS HAD DEMONSTRATED HIS INABILITY TO FOCUS HIS INABILITY TO UNDERSTAND THE RULES OF LAW AND HIS FAILURE TO FOLLOW THE COURT'S ORDERS JUDGE COHN DISMISSED A SIMILAR KEARNS CASE AGAINST GENERAL MOTORS CORP LAST SUMMER IN 1990 MR KEARNS WON A 102 MILLION SETTLEMENT FROM FORD AFTER A JURY FOUND THAT FORD HAD INFRINGED HIS PATENTS FOR WIPER SYSTEMS TWO YEARS LATER HE WON A 198 MILLION JURY VERDICT FROM CHRYSLER CORP WHICH THE COMPANY HAS APPEALED MR KEARNS WAS REPRESENTED BY LAWYERS IN THOSE CASES THE CURRENT CASE WAS FILED AGAINST FOREIGN AUTO MAKERS INCLUDING TOYOTA MOTOR CORP NISSAN MOTOR CO AND MAZDA MOTOR CORP MR KEARNS REFUSED TO FOLLOW THE COURT ORDERS HE REFUSED TO GET A LAWYER AND THE JUDGE FINALLY HAD HAD ENOUGH SAID GEORGE BADENOUCH A LAWYER WITH THE NEW YORK FIRM KENYON & KENYON WHO REPRESENTED TWO OF THE DEFENDANTS IN THE CASE MR KEARNS SAID HE WOULD ASK THE JUDGE TO RECONSIDER THE DECISION I FEEL SAD FOR MYSELF FOR OUR COUNTRY AND THE STANDARD OF LIVING OF OUR CITIZENS HE SAID THE REST OF THE WORLD IS BEING TOLD THAT THEY CAN SIMPLY INFRINGE US PATENTS WITH IMPUNITY KEARNS VS WOOD MOTORS US DISTRICT COURT DETROIT CIVIL NO CRAVATH'S NEW BRANCH THE NEW YORK LAW FIRM CRAVATH SWAINE & MOORE TRADITIONALLY AVERSE TO OPENING BRANCH OFFICES VOTED TO EXPAND TO HONG KONG THE 320ATTORNEY FIRM WILL SEND TWO CURRENT PARTNERS AND A HANDFUL OF ASSOCIATES TO HONG KONG AS EARLY AS THIS SUMMER CONCENTRATING ON PRIVATIZATION PROJECT FINANCE AND SECURITIES WORK SAMUEL C BUTLER PRESIDING PARTNER SAID THAT HONG KONG UNLIKE TOKYO IS A CENTER FOR COMPANIES SEEKING TO RAISE MONEY IN THE US WHICH IS WHAT WE DO AT PRESENT CRAVATH'S ONLY BRANCH IS IN LONDON EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 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 9402070116 940207 CONTINENTAL AIR'S TRAFFIC DECLINES HOUSTON CONTINENTAL AIRLINES SAID ITS JANUARY TRAFFIC FELL 86 TO 299 BILLION REVENUEPASSENGER MILES FROM 327 BILLION A YEAR AGO A REVENUEPASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE SLIGHTLY TO 571 FROM 562 THE AIRLINE HAS SAID THAT JANUARY'S COLD WEATHER ON THE EAST COAST AFFECTED ITS OPERATIONS 9402070115 940207 NISSAN WILL EXPAND TELEPHONE VENTURE IN SOUTHERN JAPAN SPECIAL TO THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO JAPAN'S SECONDLARGEST AUTO MAKER SAID IT WILL EXPAND THE SERVICE OFFERED BY ITS CELLULAR AND PORTABLE TELEPHONE VENTURE TO THE COUNTRY'S SOUTHERN REGIONS OF KYUSHU AND OKINAWA NISSAN'S PHONE VENTURES ALREADY SERVE JAPAN'S MAJOR METROPOLITAN AREAS OF TOKYO AND OSAKA THE COMPANY SAID IT WILL SET UP DIGITAL TUKA KYUSHU LTD IN CONJUNCTION WITH JAPAN TELECOM CO HITACHI LTD KYUSHU RAILWAY CO AND OTHER LOCAL COMPANIES AND ARMS OF FOREIGN COMPANIES NISSAN'S KYUSHU MOBILEPHONE VENTURE PLANS TO START SERVICE IN 1996 IN THE VENTURE WITH TWO BILLION YEN 185 MILLION OF CAPITAL NISSAN WILL HAVE A STAKE OF ALMOST 23 AS WILL JAPAN TELECOM OTHER JAPANESE PARTNERS INCLUDE NISHINIPPON RAILROAD CO NIPPON STEEL CORP AND TOYOTA MOTOR CORP KDD JAPAN'S LEADING INTERNATIONAL TELEPHONE CARRIER WILL HAVE AN INTEREST AND SEVERAL JAPANESE TRADING HOUSES WILL HAVE SMALLER STAKES FOREIGN PARTNERS INCLUDE PACIFIC TELESIS GROUP'S PACIFIC TELESIS INTERNATIONAL INC AND GTE CORP FROM THE US AND BRITISH TELECOMMUNICATIONS PLC NISSAN SAID THE SERVICE WILL START IN THE ISLAND'S SEVEN MAJOR CITIES AND WILL LOOK TO EXPAND TO OUTSIDE CITIES NISSAN WHICH WANTS TO SET UP A DIGITAL PHONESERVICE NETWORK IN JAPAN INDICATED IT HOPES TO SERVE THE AREA AROUND NAGOYA IN CENTRAL JAPAN WHILE EXPANDING SERVICE AROUND TOKYO AND OSAKA 9402070114 940207 FRENCH FIRM IN THAI PARTNERSHIP PARIS FRENCH MUNICIPAL SERVICES GROUP LYONNAISE DES EAUXDUMEZ SA SAID IT HAS ENTERED INTO A PARTNERSHIP WITH THAILAND'S ITALTHAI LYONNAISEDUMEZ SAID THE ALLIANCE WILL ALLOW THE TWO COMPANIES TO BID JOINTLY FOR PROJECTS IN THAILAND TO DISTRIBUTE AND TREAT WATER TERMS OF THE PARTNERSHIP WEREN'T DISCLOSED ITALTHAI WITH ANNUAL REVENUE OF ABOUT FIVE BILLION FRANCS 846 MILLION IS INVOLVED MAINLY IN CONSTRUCTION ACTIVITIES BUT ALSO HAS HOTEL AND PROPERTY DEVELOPMENT BUSINESS LYONNAISEDUMEZ SAID IT SAID ITALTHAI EMPLOYS 30000 PEOPLE 9402070113 940207 ICO BUYS OUTSTANDING SHARES HOUSTON ICO INC SAID IT BOUGHT THE OUTSTANDING SHARES OF CAPITAL STOCK OF SHEARER SUPPLY LTD OF CANADA IN A CASH AND STOCK TRANSACTION VALUED AT ABOUT 25 MILLION CANADIAN DOLLARS US19 MILLION ICO SAID IT PAID FOR SHEARER WITH 98294 SHARES OF ITS COMMON STOCK AND THE REMAINDER IN CASH SHEARER WHICH HAD REVENUE OF 56 MILLION FOR THE NINE MONTHS ENDED DEC 31 AND NET INCOME OF 401000 RECONDITIONS ENGINES USED WITH PUMPING UNITS OF OIL WELLS AND DISTRIBUTES PARTS AND SUPPLIES FOR PNEUMATIC POWER SYSTEMS ICO WHICH INSPECTS AND RECONDITIONS NEW AND USED TUBULAR GOODS SAID IT BOUGHT SHEARER IN AN EFFORT TO EXPAND ITS CURRENT PRODUCTS AND SERVICES OUTSIDE THE US SEPARATELY ICO SAID IT PREPAID ABOUT 49 MILLION FACE VALUE OF 8 SENIOR SUBORDINATED PROMISSORY NOTES DUE OCT 1 1999 TO BAKER HUGHES INC AS PART OF THE TRANSACTION BAKER EXERCISED WARRANTS TO BUY 349143 SHARES OF ICO'S STOCK 9402070112 940207 TITAN TO RECEIVE NAVY PAYMENT SAN DIEGO TITAN CORP SAID IT WILL RECEIVE A 10 MILLION PAYMENT FROM THE NAVY AFTER RESOLVING A DISPUTE OVER THE COMPANY'S CONTRACT TO PROVIDE A SYSTEM TO LINK SHIPS AND SUBMARINES BY SATELLITE THE ELECTRONICS CONCERN SAID IT EXPECTS PAYMENT WITHIN 30 DAYS TITAN DECLARED A 10 MILLION LOSS LAST YEAR THAT WAS RELATED LARGELY TO THE CONTRACT A SPOKESWOMAN SAID TITAN IS EVALUATING HOW IT WILL ACCOUNT FOR THE PAYMENT 9402070111 940207 WORKER DIES AFTER APPARENT GAS LEAK AT TEXAS SHELL PLANT HOUSTON ONE WORKER DIED AND TWO WERE SENT TO THE HOSPITAL FOR OBSERVATION AND RELEASED FOLLOWING AN APPARENT HYDROGENSULFIDE GAS LEAK THURSDAY AT SHELL CHEMICAL CO'S DEER PARK COMPLEX EAST OF HOUSTON THE THREE ALL EMPLOYEES OF BROWN & ROOT INC A UNIT OF OILSERVICES CONCERN HALLIBURTON CO WERE IN THE PLANT DOING MAINTENANCE WORK FOR SHELL CHEMICAL A UNIT OF ROYAL DUTCH/SHELL GROUP INC A BROWN & ROOT SPOKESWOMAN SAID GEORGE BETANCOURT A 31YEAROLD PIPEFITTER HELPER WAS FOUND UNCONSCIOUS AND TAKEN TO THE HOSPITAL WHERE HE WAS PRONOUNCED DEAD SHE DIDN'T IDENTIFY THE TWO OTHER MEN SHELL CHEMICAL SPOKESMAN DENNIS WINKLER SAID A HYDROGENSULFIDE ALARM DID SOUND IN THE AREA WHERE MR BETANCOURT WAS FOUND INDICATING A GAS LEAK MAY HAVE OCCURRED AN INVESTIGATIVE TEAM WAS FORMED TO DETERMINE WHAT HAPPENED MR WINKLER SAID THE MEN WERE PERFORMING ROUTINE MAINTENANCE ON THE TREATMENT UNIT WHERE HYDROGEN SULFIDE IS REMOVED FROM CRUDE OIL WORKERS IN THAT AREA ARE REQUIRED TO WEAR RESPIRATORY EQUIPMENT FOR PROTECTION FROM THE GAS WHICH CAN CAUSE SEVERE RESPIRATORY COMPLICATIONS AND AT HIGH CONCENTRATIONS CAN MAKE BREATHING IMPOSSIBLE MR BETANCOURT WAS WEARING THE REQUIRED RESPIRATORY EQUIPMENT MR WINKLER SAID THE PROBLEM WAS CONTAINED TO THE IMMEDIATE AREA AND HAD NO IMPACT ON OTHER UNITS ON THE 1500ACRE COMPLEX MR WINKLER SAID THE MAINTENANCE IS TO RESUME WHEN SHELL DETERMINES IT IS SAFE 9402070110 940207 POWER STRUGGLE IN POLAND'S COALITION SETS OFF CRISIS AS FINANCE CHIEF RESIGNS BY DANIEL MICHAELS SPECIAL TO THE WALL STREET JOURNAL WARSAW POLAND'S TWOPARTY COALITION HAS BEEN PLUNGED INTO CRISIS WITH THE RESIGNATION OF FINANCE MINISTER MAREK BOROWSKI IN A POWER STRUGGLE WITH PRIME MINISTER WALDEMAR PAWLAK MR BOROWSKI WHO IS A MEMBER OF THE DEMOCRATIC LEFT ALLIANCE THE PARTY OF THE FORMER COMMUNISTS OFFERED HIS RESIGNATION FRIDAY SAYING THE PRIME MINISTER WAS NOT LETTING HIM CONTROL ECONOMIC ISSUES AS SPELLED OUT IN THE TWO PARTIES' COALITION AGREEMENT OF OCTOBER THE FIGHT BEGAN ON JAN 29 WHEN MR PAWLAK DISMISSED DEPUTY FINANCE MINISTER STEFAN KAWALEC OVER MR BOROWSKI'S OBJECTIONS MR PAWLAK WHO HEADS THE PEASANT PARTY THE JUNIOR PARTNER IN THE THREEMONTHOLD LEFTWING COALITION SO FAR HASN'T ACCEPTED MR BOROWSKI'S RESIGNATION IF MR PAWLAK BACKS DOWN AND DOES NOT ACCEPT MR BOROWSKI'S RESIGNATION THE MOVE WILL LIKELY BE INTERPRETED AS A SIGN THAT THE PEASANT PARTY HAS BEEN PUT IN ITS PLACE AS THE JUNIOR COALITION PARTNER MR PAWLAK'S MOVES ARE A SIGN THAT THE PEASANT PARTY IS ATTEMPTING TO STEP OUT FROM UNDER DEMOCRATIC LEFT ALLIANCE DOMINATION AND SHOW ITS SUPPORTERS THAT IT WON'T ALLOW THE DEMOCRATIC LEFT ALLIANCE TO CONTROL ALL KEY ECONOMIC DECISIONS WHILE MR BOROWSKI'S ACTUAL RESIGNATION WOULD INDICATE OPEN CONFLICT BETWEEN THE TWO PARTIES IF HE STAYS IT WILL PROBABLY MEAN THE DEMOCRATIC LEFT ALLIANCE HAS PREVAILED MR BOROWSKI'S MOVE COULD HARDLY HAVE COME AT A WORSE TIME FOR POLAND AS GOVERNMENT ECONOMIC CHIEF MR BOROWSKI HAS SPENT THE PAST MONTH PUSHING AN AUSTERE AND UNPOPULAR 1994 NATIONAL BUDGET THROUGH PARLIAMENTARY COMMITTEES THE BUDGET WHICH MEETS THE APPROVAL OF KEY INTERNATIONAL ASSISTANCE ORGANIZATIONS SUCH AS THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK IS SET TO REACH THE FLOOR OF PARLIAMENT LATER THIS MONTH WITHOUT MR BOROWSKI AT THE HELM THE BUDGET'S FATE IS HIGHLY UNCERTAIN MEMBERS OF PARLIAMENT WHO HAVE SEEN THEIR PARTY LEADERSHIP BACKTRACK ON ELECTION PROMISES OF GREATER SPENDING MAY SEIZE THE OPPORTUNITY TO INCREASE THE STATE DEFICIT FROM THE 41 OF GROSS DOMESTIC PRODUCT ENVISAGED BY MR BOROWSKI SHOULD DEFICIT RISE OR IF THE BUDGET GETS BOGGED DOWN AN IMF DELEGATION NOW IN POLAND WOULD LIKELY WITHHOLD APPROVAL OF THE COUNTRY'S ECONOMIC PLANS THIS WOULD CAUSE THE SUSPENSION OF A YEAROLD STANDBY AGREEMENT SET TO BE RENEWED IN MARCH NOT ONLY DOES IMF APPROVAL OPEN THE WAY TO IMF FUNDS OTHER AID AND GOVERNMENT ORGANIZATIONS LOOK TO IMF OPINIONS TO SHAPE THEIR OWN POLICIES ON APRIL 1 A SECOND ROUND OF DEBT RELIEF VALUED AT OVER 20 BILLION FROM POLAND'S WESTERN GOVERNMENT CREDITORS THE PARIS CLUB IS PLANNED TO TAKE EFFECT IF THE IMF WITHDRAWS APPROVAL THE PARIS CLUB WILL PROBABLY POSTPONE ACTION IMF HESITATION WOULD ALSO SCUTTLE RECENTLY ACCELERATING TALKS BETWEEN POLAND AND THE LONDON CLUB OF WESTERN COMMERCIAL BANK CREDITORS ON OVER 12 BILLION IN DEBT WITHOUT A LONDONCLUB DEAL FOREIGN BANKS AND INVESTORS WILL CONTINUE THEIR RELUCTANCE TO FUND LARGE OPERATIONS IN POLAND AND POLAND WILL REMAIN LOCKED OUT OF INTERNATIONAL FINANCIAL MARKETS MR BOROWSKI'S RESIGNATION BRINGS TO A HEAD A SIMMERING CONFLICT BETWEEN TWO PARTIES JOINED IN A MARRIAGE OF CONVENIENCE IN FORMING THIS GOVERNMENT THE DEMOCRATIC LEFT ALLIANCE WHICH WON 173 PARLIAMENTARY SEATS IN SEPTEMBER'S ELECTION OFFERED MR PAWLAK AND THE 128SEAT PEASANT PARTY THE POSITION OF PREMIER AND SEVERAL OTHER KEY POSTS IN RETURN FOR DEMOCRATIC LEFT ALLIANCE CONTROL OF FINANCE PRIVATIZATION AND OTHER KEY ECONOMICPOLICYMAKING POSITIONS SINCE ACCEPTING THE DEAL THE PEASANT PARTY HAS PROVEN UNCOOPERATIVE AND OBSTRUCTIONIST IN AREAS SUCH AS THE BUDGET TRADE POLICY AND PRIVATIZATION ACCORDING TO SOURCES WITHIN THE GOVERNMENT HIGH OFFICIALS OF THE DEMOCRATIC LEFT ALLIANCE HAVE ACCUSED MR PAWLAK OF VIOLATING THE COALITION AGREEMENT BY DISMISSING MR KAWALEC A NONPARTY TECHNOCRAT HANDLING FINANCIALSECTOR REFORM WHO HAS WORKED IN THE MINISTRY SINCE POLISH REFORMS BEGAN IN 1989 PRIME MINSTER PAWLAK'S PEASANT PARTY WAS REPORTEDLY UPSET BY MR KAWALEC'S UNWILLINGNESS TO REFINANCE THE HEAVILY INDEBTED BANK FOR FOOD ECONOMY OR BGZ AN AGRICULTURALLYORIENTED BANK WHICH HAS HEADQUARTERS IN THE SAME BUILDING AS THE PEASANT PARTY MR KAWALEC ALSO CONTROLLED THE STRATEGIC AND POTENTIALLY LUCRATIVE POSITIONS OF DIRECTORS ON POLAND'S SOONTOBEPRIVATIZED STATE BANKS AND BOTH COALITION PARTIES HAVE BEEN AIMING TO PLACE THEIR OWN DESIGNATES ON THESE BOARDS COMPOUNDING THE FIGHT OVER POLICY FORMULATION IS A BATTLE TO INSTALL REGIONAL LEADERS IN POLAND'S 49 DISTRICTS AS WARSAW'S LINK TO LOCAL AREAS THESE POSITIONS ARE A KEY SPOIL IN CONTROLLING POLAND'S STILLCENTRALIZED GOVERNMENT ADMINISTRATION THE DEMOCRATIC LEFT ALLIANCE IS COMPLAINING THAT THE PEASANT PARTY IS REPLACING TOO MANY OF THESE POSITIONS WITH ITS OWN OFFICIALS WITHOUT CONSULTING THEIR SENIOR COALITION PARTNER SHARES ON THE WARSAW STOCK EXCHANGE WILL PROBABLY NOT TAKE THE WEEKEND'S POLITICAL DEVELOPMENTS WELL LAST WEEK THE MARKET LOST ALMOST 20 OF ITS VALUE AFTER POLITICIANS' COMMENTS THAT THE EXCHANGE'S FASTRISING PRICE LEVELS HAD CREATED A BUBBLE ABOUT TO BURST IT WAS ONLY AFTER LAST YEAR'S AUSTERE BUDGET PASSED THROUGH PARLIAMENT AND THE CURRENT IMF DEAL WAS SIGNED THAT POLAND'S BOURSE BEGAN ITS METEORIC RISE 9402070108 940207 FUJI CO COLOR PHOTOGRAPHIC PAPER SET FOR US PRODUCTION CHALLENGING KODAK BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL FUJI PHOTO FILM CO SAID IT WILL BEGIN PRODUCING COLOR PHOTOGRAPHIC PAPER IN THE US A BOLD MOVE CHALLENGING EASTMAN KODAK CO'S DOMINANT POSITION IN THAT MARKET THE MOVE ALSO ADDS A NEW TWIST TO AN ANTIDUMPING PETITION FILED BY RIVAL KODAK WHICH CLAIMS TOKYO'S FUJI SOLD ITS PAPER IN THE US AT BELOW FAIR MARKET VALUE SHOULD FUJI BECOME A US PRODUCER IT COULD FREELY SET ITS PAPER PRICES WITHOUT RISKING CHARGES THAT IT WAS DUMPING OR SELLING IMPORTS AT UNFAIRLY LOW PRICES IN THE US KODAK'S PETITION CLAIMS THAT FUJI CURRENTLY USES PROFITS FROM MONOPOLYLIKE SALES IN JAPAN TO SUBSIDIZE THE SELLING OF ITS PAPER IN THE US FOR PRICES AS LOW AS ONEFOURTH OF WHAT FUJI CHARGES IN JAPAN AND THE NETHERLANDS KODAK IS ASKING FOR TARIFFS AS STEEP AS 300 TO BE PLACED ON IMPORTED PHOTOGRAPHIC PAPER AND RELATED CHEMICALS SHOULD KODAK PREVAIL FUJI'S RANGE OF OPTIONS WOULD BE SMALL SAID MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO THE INTERNATIONAL TRADE COMMISSION HAS ALREADY ISSUED A PRELIMINARY RULING THAT KODAK WAS MATERIALLY INJURED BY FUJI IMPORTS THE NEXT STEP IS FOR THE COMMERCE DEPARTMENT TO DECIDE THE MARGIN OF TARIFFS TO LEVY ON FUJI DEPENDING ON WHAT PRICE DISCREPANCIES EXIST BETWEEN FUJI'S US PAPER AND JAPAN AND NETHERLANDS PAPER A PRELIMINARY DECISION IS EXPECTED MARCH 29 IF HOWEVER KODAK WERE TO WITHDRAW THE PETITION BEFORE THE END OF MARCH IT IS POSSIBLE FUJI WOULDN'T BUILD THE PLANT SAID TOM SHAY FUJI SPOKESMAN KODAK SAID IT HAD NO PLANS TO DROP THE PETITION AND DECLINED FURTHER COMMENT ON FUJI'S ANNOUNCEMENT ANALYSTS WEREN'T OVERLY CONCERNED ABOUT THE IMPACT ON KODAK THE BUILDING OF A US PLANT WOULD OF COURSE ALLOW FUJI TO CHARGE WHATEVER THEY WANT SAID KIMBERLY RITRIEVI AN ANALYST WITH SHEARSON LEHMAN BUT THE EXPENSE ASSOCIATED WITH BUILDING THE PLANT WILL DEFINITELY RAISE FUJI'S COST STRUCTURE SO THE EXTENT TO WHICH THEY COULD PUSH PRICES DOWN IS LOW THE US MARKET FOR COLOR PHOTOGRAPHIC PAPER IS GROWING AND THEREFORE IMPORTANT TO BOTH COMPANIES IF IT ESTABLISHES A DOMESTIC PLANT AND OFFERS LOWER PAPER PRICES FUJI COULD BECOME A MORE ENTICING OPTION TO PHOTOFINISHERS AND IGNITE A PRICE WAR I WOULD WELCOME THEM HAVING A PLANT HERE SAID RICK BACHELDER PRESIDENT OF FILMET COLOR LABORATORIES INC IN PITTSBURGH 9402070107 940207 ABREAST OF THE MARKET FED DECLARES PSYCHOLOGICAL WAR' ON INFLATION MOST EXPECT STOCK MARKET TO REBOUND BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE INTERESTRATE BOGEYMAN FINALLY STRUCK LAST WEEK AND KNOCKED THE STOCK MARKET FOR A LOOP DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS NOTES THAT INVESTORS HAVEN'T EXPERIENCED A RATE INCREASE SINCE 1989 THE MARKET HAS ASSUMED FOR FIVE YEARS THAT THE FED WOULD PROVIDE THE LIQUIDITY TO PUSH STOCKS HIGHER MR SHULMAN SAYS THIS IS A SEA CHANGE IT'S THE END OF THE MARKET RELYING ON THE FED TO PROVIDE THAT LIQUIDITY BUT OTHER ANALYSTS CONTEND THAT STOCKS WILL BOUNCE BACK AFTER INVESTORS REALIZE THE INTERESTRATE INCREASE WILL DO LITTLE TO HARM THE ECONOMY THERE'S ALWAYS A KNEEJERK OVERREACTION SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THE RATE HIKE WILL PROBABLY HELP THE ECONOMY BECAUSE PEOPLE WILL SPEED UP INTERESTRATEDEPENDENT PURCHASES SUCH AS LARGE CONSUMER DURABLES AND HOUSES LEHMAN BROTHERS' ELAINE GARZARELLI ONE OF WALL STREET'S MOSTBULLISH FORECASTERS SAYS THE SELLOFF DIDN'T FAZE HER EVERYBODY SHOULD BE BUYING RIGHT NOW IT'S JUST A GIFT SHE SAYS OF FRIDAY'S PLUNGE SHE SAYS THE MARKET WAS DUE FOR A PULLBACK AND THAT THE WORST SHE ANTICIPATES FROM HERE IS A 6 DECLINE TO 3650 A TYPICAL TEMPORARY REACTION TO A FEDERAL RESERVE RATE INCREASE THIS IS VERY NORMAL THE MARKET IS DOING EXACTLY WHAT IT SHOULD MS GARZARELLI SAYS THE FED IS JUST DOING THIS TO MAKE THE BOND MARKET HAPPY AND THE BOND MARKET DOESN'T KNOW IT YET MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK APPLAUDS THE FED FOR ELIMINATING THE UNCERTAINTY AND SPECULATION ABOUT A RATE INCREASE THAT SWEPT THROUGH THE MARKET LAST WEEK I FIND THIS QUITE POSITIVE FOR STOCKS BECAUSE THE FED ACTION IS A CLEAR SIGN IT MEANS BUSINESS ABOUT KEEPING INFLATION LOW AND LOW INFLATION PAVES THE WAY FOR SUSTAINED ECONOMIC GROWTH HE SAYS MR LEVY ADDS THAT THE SHARP STOCK MARKET REACTION FRIDAY CAME BECAUSE MANY INVESTORS THINK THE FED'S MOVE IS THE BEGINNING OF A SERIES OF RATE INCREASES A NOTION THAT HE REJECTS EVEN IF THIS IS THE START OF A CLASSIC PATTERN OF RATE INCREASES THE STOCK MARKET SHOULD BE ABLE TO WEATHER A MODEST RISE IN SHORT RATES SOME ANALYSTS SAY ADMITTEDLY STOCKS PERFORMED BETTER IN THE 12 MONTHS PRIOR TO A FED TIGHTENING WITH THE S&P RETURNING 187 BUT THE HISTORICAL AVERAGE GAIN OF 116 ARGUES FOR CONTINUED HIGH EXPOSURE TO STOCKS EVEN AFTER RATES START RISING MR RAGSDALE SAYS HE ADDS THAT THE USUAL RELATIVE OUTPERFORMANCE OF STOCKS TO BONDS REMAINS CONSISTENT DURING THE PERIOD OF RISING RATES SOME ANALYSTS CONTEND THE STOCK MARKET WILL CONTINUE TO PUSH HIGHER AS LONG AS INCREASES IN THE FEDERALFUNDS RATE ARE SMALL AND GRADUAL WITH THE RISES BEING NO MORE THAN A QUARTER OF A POINT AT A TIME BUT FEDERAL FUNDS ARE ONE THING A RISING DISCOUNT RATE THE RATE THE FED CHARGES MEMBER BANKS FOR SHORTTERM LOANS IS ANOTHER MATTER WHEN IT BEGINS TO RISE MR RAGSDALE SAYS STOCKS TEND TO RUN INTO TROUBLE HIS STUDY SHOWS THAT PRICES TURN MARGINALLY LOWER IN THE MONTHS IMMEDIATELY FOLLOWING A DISCOUNTRATE INCREASE AND MANAGE ONLY A SMALL GAIN OF 15 AFTER 12 MONTHS STILL A DISCOUNTRATE INCREASE ISN'T LIKELY ANYTIME SOON SOME ANALYSTS SAY IT USUALLY COMES A CONSIDERABLE TIME AFTER THE FED'S INITIAL TIGHTENING PROVIDING STOCK MARKET INVESTORS A CHANCE TO RACK UP FURTHER GAINS BEFORE IT HAPPENS FOR EXAMPLE MR RAGSDALE SAYS THE FED BEGAN A TIGHTENING IN DECEMBER 1986 BUT DIDN'T RAISE THE DISCOUNT RATE UNTIL SEPTEMBER 1987 NOT EVERYONE THINKS THE STOCK MARKET CAN SHRUG OFF RISING RATES THE CHICAGO MERCANTILE EXCHANGE LAST WEEK RAISED MARGIN REQUIREMENTS ON STOCK INDEX FUTURES IN AN EFFORT TO HEAD OFF A POSSIBLE STOCK MARKET TUMBLE AS A RESULT OF RISING RATES SALOMON BROTHERS' MR SHULMAN ADDS THAT INVESTORS SHOULD WATCH CLOSELY WHAT EFFECT THE RATE RISE HAS ON MONEY FLOWING INTO MUTUAL FUNDS IF INDIVIDUAL INVESTORS TRIM BACK ON MUTUALFUND INVESTMENTS THEN WE'RE GOING TO HAVE THAT LONGAWAITED CORRECTION HE SAYS ROBERT J BARBERA AN ECONOMIST AT LEHMAN BROTHERS CONTENDS THAT BECAUSE THE ECONOMIC RECOVERY IS SELFSUSTAINING NOW ARTIFICIALLY LOW INTEREST RATES ARE NO LONGER NECESSARY HE PREDICTS THE FEDERALFUNDS RATE WILL BE AT 4 BY THE END OF THE YEAR WITH ADVERSE IMPLICATIONS FOR THE STOCK MARKET HE EXPECTS THAT SOMETIME BETWEEN NOW AND YEAR END STOCK PRICES WILL EXPERIENCE A 10 TO 15 DECLINE I DON'T THINK ANYONE WOULD ARGUE THAT A FEDFUNDS RATE OF 4 WOULDN'T CAUSE A CORRECTION HE SAYS IT'S TOUGH TO SAY THAT WITH RISING SHORT RATES WE'D STILL HAVE A RISING MARKET BECAUSE IN THIS CIRCUMSTANCE WE'VE HAD AN EXTENDED CLIMB MR BARBERA SAYS I'M LOOKING FOR THE RISE IN RATES TO BE THE CAP ON THE MARKET'S ADVANCE THE DOW JONES INDUSTRIAL AVERAGE PLUMMETED 9624 POINTS OR 24 TO 387142 IT WAS THE DOW'S LARGEST ONEDAY POINT DECLINE SINCE NOV 15 1991 WHEN IT PLUNGED 120 POINTS STANDARD & POOR'S 500STOCK INDEX FELL 1090 OR 23 TO 46981 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 597 OR 22 TO 26121 THE NASDAQ COMPOSITE INDEX SLID 2051 OR 26 TO 77728 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST 889 OR 18 TO 47829 FOR THE WEEK THE DOW LOST 74 POINTS OR 19 THE S&P 500 DROPPED NEARLY NINE POINTS OR 19 AND THE NASDAQ COMPOSITE FELL MORE THAN 19 POINTS OR 24 WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 163 TO 11664 ECONOMICALLY SENSITIVE STOCKS AND FINANCIAL ISSUES WERE THE HARDEST HIT PROFITTAKING CLOBBERED THE CYCLICALS WHICH HAVE LED THE MARKET'S ADVANCE DURING THE PAST SEVERAL MONTHS AMONG THE MOST ACTIVELY TRADED ISSUES ON THE BIG BOARD WERE CYCLICAL GIANTS SUCH AS GENERAL MOTORS WHICH DROPPED 1 3/8 TO 61 5/8 FORD WHICH LOST 1 3/8 TO 68 AND DISNEY WHICH DECLINED 1 7/8 TO 45 CITICORP PLUNGED 2 1/4 TO 40 1/4 MERRILL LYNCH SKIDDED 2 7/8 TO 41 3/8 AND CHASE SHED 1 1/2 TO 33 3/4 EACH ON VOLUME OF NEARLY TWO MILLION SHARES OR MORE AMONG THE BIGGEST DECLINERS WAS INFORMATION RESOURCES WHICH PLUNGED 8 7/8 OR 24 TO 28 3/4 ON NASDAQ VOLUME OF 47 MILLION SHARES THE CHICAGO RETAILING MARKET RESEARCH COMPANY ESTIMATED ITS FOURTHQUARTER EARNINGS WILL REACH ONLY 15 CENTS TO 17 CENTS A SHARE FAR BELOW EXPECTATIONS ANALYSTS HAD FORECAST EARNINGS OF 32 CENTS TO 34 CENTS IN THE PERIOD AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO DECLINED 2 1/4 TO 73 ON HEAVY BIG BOARD VOLUME OF 63 MILLION THE MEXICAN TELEPHONE SERVICES PROVIDER SAID ITS 1993 NET INCOME ROSE JUST 45 SOMEWHAT BELOW ANALYSTS' EXPECTATIONS THE PLUNGE IN THE DOW INDUSTRIALS WAS THE EIGHTHGREATEST ONEDAY MOVE ON RECORD ON A POINT BASIS JUST BELOW APRIL 15 1988 WHEN THE DOW LOST 10146 BUT ON A PERCENTAGE BASIS THE SLIDE WAS BARELY NOTABLE NOT EVEN MAKING THE TOP 100 THE DOW'S DECLINE ACTIVATED THE NEW YORK STOCK EXCHANGE'S COLLAR WHICH SLOWS COMPUTERAIDED PROGRAM TRADING WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN 50 POINTS FROM THE PREVIOUS DAY'S CLOSE IT WAS THE FIRST TIME THE COLLAR WAS ACTIVATED THIS YEAR WILLIAM POWER CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE CREDIT MARKETS LITTLE CHANGE FOR ECONOMY SEEN BY SOME WSJ FEB 7 1994 9402070106 940207 RYDER TO POST HIGHER EARNINGS FROM OPERATIONS BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL RYDER SYSTEM INC EXPECTS TO REPORT AN ALMOST 40 JUMP IN FOURTHQUARTER EARNINGS PER SHARE FROM CONTINUING OPERATIONS M ANTHONY BURNS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE RECENT QUARTER'S PERFORMANCE WILL BE COMPARED WITH A 1992 FOURTH QUARTER IN WHICH THE HIGHWAY TRANSPORTATION CONCERN POSTED NET INCOME OF 28 CENTS A SHARE FROM CONTINUING OPERATIONS MR BURNS SAID IN AN INTERVIEW FOR ALL OF 1993 MR BURNS SAID RYDER WOULD REPORT A 20 INCREASE IN PERSHARE EARNINGS FROM CONTINUING OPERATIONS IN 1992 THE MIAMIBASED COMPANY'S CONTINUING OPERATIONS EARNED ABOUT 98 MILLION OR 117 A SHARE ON REVENUE OF 4 BILLION HE SAID OTHER NUMBERS SUCH AS TOTAL EARNINGS FROM CONTINUING OPERATIONS IN THE FOURTH QUARTERS OF 1992 AND 1993 WEREN'T AVAILABLE THE FIGURES CITED BY MR BURNS EXCLUDE RYDER'S LARGE AVIATION DIVISION WHICH IN DECEMBER WAS SPUN OFF INTO A PUBLICLY TRADED COMPANY CALLED AVIALL INC THE AVIALL SPINOFF WAS THE LATEST AND LARGEST STEP IN A FOURYEAR RESTRUCTURING PROGRAM AIMED AT REFOCUSING RYDER ON ITS CORE BUSINESS OF TRUCK LEASING TRUCK RENTING AUTO HAULING AND OTHER TRUCKING SERVICES WE'VE NOW COMPLETED OUR TRANSITION MR BURNS SAID RYDER EXPECTS TO REPORT THAT ITS 1993 REVENUE FROM CONTINUING OPERATIONS GREW TO 42 BILLION FROM 4 BILLION IN 1992 FOR THE FOURTH QUARTER REVENUE FROM CONTINUING OPERATIONS INCREASED TO APPROXIMATELY 11 BILLION FROM 1 BILLION IN THE YEAREARLIER PERIOD MR BURNS ADDED WHEN RYDER REPORTS ITS 1993 FINANCIAL RESULTS EXPECTED THIS WEEK THE AVIALL DIVISION'S FINANCIAL RESULTS FOR MOST OF THE YEAR WILL BE INCLUDED AS A RESULT RYDER PLANS TO REPORT AN OVERALL LOSS FOR THE YEAR DUE PRIMARILY TO A 1694 MILLION CHARGE RELATING TO THE AVIALL SPINOFF IN 1992 INCLUDING ALL OPERATIONS RYDER POSTED EARNINGS OF 124 MILLION OR 151 A SHARE ON REVENUE OF 52 BILLION DURING THE FOURTH QUARTER OF 1992 RYDER REPORTED EARNINGS OF 298 MILLION OR 36 CENTS A SHARE ON REVENUE OF 13 BILLION INCLUDING ALL OPERATIONS MR BURNS ATTRIBUTED THE CONTINUING OPERATIONS GAINS AT RYDER LARGELY TO THE IMPROVED PERFORMANCE OF THE COMPANY'S LARGE VEHICLELEASING AND SERVICES DIVISION WHERE EARNINGS FOR THE QUARTER ARE EXPECTED TO RISE 50 FROM THE YEAREARLIER PERIOD IN THE FOURTH QUARTER OF 1992 THE DIVISION REPORTED PRETAX EARNINGS OF 31 MILLION ON REVENUE OF 868 MILLION 9402070105 940207 STRANGE SCIENCE' PREDICTING HEALTHCARE COSTS BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL IF THE US WERE TO ADOPT A CANADIANSTYLE NATIONAL MEDICAL PLAN HEALTHCARE SPENDING IN AMERICA WOULD A INCREASE BY 212 BILLION B DECREASE BY UP TO 241 BILLION C INCREASE BY 38 BILLION THE ANSWER ALL OF THE ABOVE OR NONE OF THE ABOVE DEPENDING ON WHOSE DATA YOU BELIEVE EACH ESTIMATE IS BASED ON A SOPHISTICATED ECONOMIC MODEL THAT ITS SPONSORS SWEAR BY LEWINVHI A CONSULTING FIRM PRODUCED ANSWER A THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE A NONPROFIT RESEARCH GROUP ANSWER B AND THE CONGRESSIONAL BUDGET OFFICE ANSWER C EACH IS DESIGNED TO GUIDE AMERICA'S LAWMAKERS IN THE HEALTHCARE DEBATE AND EACH UNDERSCORES A SIMPLE TRUTH IN THE COMPLEX EFFORT TO CALCULATE HEALTHCARE COSTS ECONOMIC MODELING AND FORECASTING ARE VERY UNCERTAIN SCIENCES DON'T NECESSARILY BELIEVE WHAT YOU READ THE NUMBERS OUT OF THESE MODELS ARE BETTER THAN YOU COULD GET BY BACKOFTHEENVELOPE CALCULATIONS SAYS CONSTANCE CITRO A RESEARCHER AT THE NATIONAL ACADEMY OF SCIENCES WHO HAS STUDIED HEALTHCARE MODELS BUT THERE NEEDS TO BE MORE RECOGNITION THAT THERE IS UNCERTAINTY ACTUALLY UNCERTAINTY ABOUNDS IT TAKES A MOUNTAIN OF COMPUTER CODING AND OFTEN MILLIONS OF PIECES OF DATA TO CREATE AN OPERATING MODEL A COMPUTER PROGRAM THAT ATTEMPTS TO SUM UP MATHEMATICALLY THE EFFECTS OF POTENTIAL POLICY CHANGES EVEN THE MOST SOPHISTICATED OF THESE MODELS IS USUALLY FAR FROM OBJECTIVE IN THE END A WELTER OF SUBJECTIVE JUDGMENTS AND GUESSES GETS FUNNELED INTO THE MODELS AND THAT'S WHERE THE TROUBLE BEGINS IT'S A WEAK POINT SAYS DONALD YETT A PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA WHO HELPED DEVELOP ONE HEALTHCARE COST MODEL WE END UP HAVING TO MAKE RATHER CRUDE FORECASTS SOME QUESTIONS HOW MANY PEOPLE WILL STICK WITH THEIR OWN DOCTORS OR OPT INSTEAD TO JOIN HEALTHMAINTENANCE ORGANIZATIONS HOW EFFICIENTLY AND THUS INEXPENSIVELY WILL THESE HMOS BE RUN ONCE PEOPLE WHO HAVE NEVER HAD COVERAGE BEFORE ARE INSURED HOW MUCH HEALTH CARE WILL THEY USE NO ONE KNOWS FOR SURE DIFFERENT ASSUMPTIONS ABOUT THESE AND MYRIAD OTHER FACTORS CAN RESULT IN ANSWERS THAT DIVERGE BY BILLIONS IF NOT TRILLIONS OF DOLLARS SO IT IS THAT THE GOVERNMENT PERPLEXED HAS BEEN EXAMINING THE EXAMINERS ONE STUDY BY CONGRESS'S OFFICE OF TECHNOLOGY ASSESSMENT WHICH LOOKED AT THE DIFFERING ANALYSES OF THE CANADIANSTYLE HEALTH PLAN IS TITLED AN INCONSISTENT PICTURE ANOTHER A PAPER PREPARED BY MS CITRO AND ERIC MANUSHEK OF UNIVERSITY OF ROCHESTER ASKS WHY ARE THE NUMBERS SO DIFFERENT ONE REASON THE NUMBERS ARE DIFFERENT IS THAT AGAIN THE ASSUMPTIONS ARE TOO IN THEIR ANALYSIS OF THE CANADIANSTYLE HEALTH PLAN BOTH LEWINVHI A UNIT OF MANAGEDCARE CONCERN VALUE HEALTH INC AND THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE CALCULATED THE ADMINISTRATIVE COSTS THE US WOULD SAVE IF IT ADOPTED CANADA'S PROGRAM BUT THE INSTITUTE ADDED A FURTHER AND QUITE SIGNIFICANTASSUMPTION THAT THE US WOULD DRIVE DOWN ITS OVERALL HEALTHCARE SPENDING TO CANADA'S LEVEL AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT WHICH WOULD BE ABOUT A 30 DROP WHILE THE INSTITUTE ACKNOWLEDGES THAT ISN'T REALISTIC WE DID IT TO SEE WHAT WERE THE POTENTIAL SAVINGS IF WE HAD A SYSTEM THAT COSTS US AS LITTLE AS THE CANADIANS DID SAYS THE INSTITUTE'S PRESIDENT JACK MEYER THE RESULT OF THAT ASSUMPTION IS THE HUGE DIFFERENCE IN THE TWO ESTIMATES THE SAME PROBLEM CROPS UP IN COMPETING MODELS OF THE CLINTON HEALTH PLAN TAKE FOR EXAMPLE THAT QUESTION ABOUT WHETHER HMOS WOULD OR WOULDN'T BE LESS COSTLY THAN TRADITIONAL FEEFORSERVICE PLANS LEWINVHI ASSUMED NO THE CLINTON ADMINISTRATION ASSUMED YES AND WHAT ABOUT THE COST OF INSURING THE PREVIOUSLY UNINSURED AGAIN A WIDE DIFFERENCE OF OPINION BETWEEN LEWINVHI AND THE ADMINISTRATION WITH THE CLINTON FORECASTERS COMING IN ON THE LOW SIDE WE JUST DISAGREED SAYS KENNETH E THORPE DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY WHO COORDINATED THE WHITE HOUSE'S MODEL BASED ON ITS ASSUMPTIONS THE ADMINISTRATION FIGURED THAT OVER FIVE YEARS ITS PLAN WOULD CUT ABOUT 58 BILLION FROM AMERICA'S BUDGET DEFICIT MORE THAN DOUBLE THE 25 BILLION FIGURE LEWIN ESTIMATED EVEN WITHIN THE WHITE HOUSE THOUGH THERE ISN'T ALWAYS UNANIMITY WHEN TWO DIFFERENT HEALTHCARE MODELING GROUPS IN THE ADMINISTRATION FOUND BIG DIFFERENCES IN THEIR COST FORECASTS FINGERS WAGGED SOME OBSERVERS FELT THAT ONE ORGANIZATION WAS PRODUCING NUMBERS MORE POLITICALLY CORRECT THAN ANOTHER SAYS DEAN FARLEY A SENIOR RESEARCH MANAGER AT THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH IN FACT HE SAYS WHEN THE TWO GROUPS COMPARED NOTES THEY FOUND THAT WHAT THEY DISAGREED ON WASN'T THE FUTURE BUT THE PRESENT THE TWO HAD VERY DIFFERENT ESTIMATES OF WHAT IS BEING SPENT TO CARE FOR UNINSURED PEOPLE TODAY OUTDATED RESEARCH ALSO CAUSES PROBLEMS SOME OF THE MOST EXTENSIVE RESEARCH COMPARING HMOS WITH FEEFORSERVICE PLANS WAS DONE BY RAND CORP IN THE LATE 1970S AND EARLY 1980S EVEN TODAY MANY MODELERS BASE SOME OF THEIR ASSUMPTIONS ON RAND'S RESULTS BUT TIMES HAVE CHANGED AND SO HAVE CONDITIONS IN THE HEALTHCARE MARKETPLACE BACK WHEN RAND DID ITS STUDY FOR EXAMPLE IT WAS EXAMINING AN EARLY FORM OF HMO THAT HAD DOCTORS PRACTICING TOGETHER AS A GROUP TODAY HOWEVER LINKED NETWORKS OF INDIVIDUAL DOCTORS ARE THE MORE PREVALENT HMO THAT DIFFERENCE MAY AFFECT COSTS IT'S RISKY TO ASSUME THAT THE PAST IS PROLOGUE TO THE FUTURE SAYS MR MEYER AT THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE WHAT'S MORE THE SHEER VOLUME OF DATA AND THE COMPLEXITY OF CALCULATIONS INVOLVED OFTEN RESULT IN FLAWS CREEPING INTO BIG MODELS WE HAVE ERRORS IN THE ORIGINAL DATA SETS FORECASTING ERRORS JUDGMENTS THAT HAVE TO BE MADE ABOUT IMPORTANT PARAMETERS ESTIMATES THAT ECONOMISTS PULL OUT OF THEIR HEADS SAYS JACK RODGERS DIRECTOR OF HEALTHPOLICY ANALYSIS AT PRICE WATERHOUSE THE ACCOUNTING FIRM WHAT COMES OUT THE OTHER END THE ANSWER IS TRULY THAT IT'S VERY COMPLICATED AND NO ONE KNOWS THE ANSWER SO THE FORECASTS AND MODELING DATA FLOODING THE HEALTHCARE DEBATE MAY HELP LAWMAKERS VAGUELY SKETCH OUT THE HORIZON BUT LITTLE MORE IN THE END THE CHIEF THING THE MODELS CONFIRM IS SOMETHING LEGISLATORS ALREADY KNEW THE DIFFICULTIES WE HAVE IN ESTIMATING ARE A METAPHOR FOR THE DIFFICULTIES OF DOING THESE REFORMS IN THE FIRST PLACE SAYS JOHN SHEILS VICE PRESIDENT OF LEWINVHI THIS IS A MASSIVE RESTRUCTURING AND WE DON'T KNOW HOW IT'S GOING TO COME OUT 9402070104 940207 UN CHIEF SEEKS POWER TO ORDER ATTACKS ON SERBS BOUTROSGHALI URGES NATO AIR STRIKES IN THE WAKE OF MASSACRE IN SARAJEVO BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNITED NATIONS SECRETARY GENERAL BOUTROS BOUTROSGHALI INCREASED THE PRESSURE FOR WESTERN MILITARY ACTION IN BOSNIA FOLLOWING THE WEEKEND SHELLING OF A SARAJEVO MARKET THAT KILLED 68 PEOPLE AND WOUNDED MORE THAN 200 MR BOUTROSGHALI ASKED THE NORTH ATLANTIC TREATY ORGANIZATION TO GIVE HIM THE POWER TO ORDER NATO AIR STRIKES ON ARTILLERY OR MORTAR POSITIONS AROUND SARAJEVO WHICH IS UNDER SIEGE BY BOSNIAN SERBS WHETHER THE ALLIANCE WILL LAUNCH THE LONGTHREATENED AIR STRIKES OR SIMPLY INDULGE IN MORE HANDWRINGING AND RECRIMINATIONS ISN'T KNOWN MR BOUTROSGHALI IS APPARENTLY MORE INTERESTED IN USING THE NEW AUTHORITY TO DETER FURTHER SERB ATTACKS AGAINST CIVILIANS THAN IN LAUNCHING AN IMMEDIATE RETALIATION FOR SATURDAY'S SLAUGHTER SPEAKING AFTER A MEETING WITH HIS TOP FOREIGN POLICY ADVISERS PRESIDENT CLINTON RULED OUT ANY IMMEDIATE MILITARY ACTION TELLING REPORTERS THAT THE US FIRST HAD TO CONSULT WITH RELUCTANT ALLIES AND GIVE THE UNITED NATIONS A CHANCE TO CONFIRM RESPONSIBILITY FOR THE ATTACK THAT'S NOT TO SAY THERE WON'T BE RETALIATION BECAUSE WE CERTAINLY DISCUSSED IT IN CONSIDERABLE LENGTH TODAY MR CLINTON SAID BUT HE EMPHASIZED THAT THE US DIDN'T HAVE THE AUTHORITY TO ACT ON ITS OWN AND HE NOTED THAT THOSE COUNTRIES WITH PEACEKEEPERS ON THE GROUND WERE FAR MORE RELUCTANT TO LAUNCH AIR STRIKES MR BOUTROSGHALI'S MOVE DID SIGNAL A MORE ASSERTIVE ATTITUDE ON THE PART OF FRANCE WHICH HAS THE LARGEST CONTINGENT OF PEACEKEEPERS ON THE GROUND HE'S RESPONDING TO HIS PRINCIPAL TROOP CONTRIBUTOR SAID A US OFFICIAL IN THE PAST MR BOUTROGHALI HAS BEEN SEEN AS AN OBSTACLE TO MILITARY ACTION THE UN LEADER HAS REFUSED TO USE SIMILAR AUTHORITY TO THAT HE IS CURRENTLY SEEKING TO ORDER AIR STRIKES TO PROTECT UN TROOPS ON THE GROUND BUT WITH FRANCE'S CHANGE OF HEART MR BOUTROSGHALI MAY TAKE A DIFFERENT APPROACH HOWEVER OTHER ALLIES REMAIN RELUCTANT THE KEY DECISIONS REST WITH THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM WHICH WILL MEET THIS WEEK BRITAIN AND CANADA TWO OTHER KEY TROOP CONTRIBUTORS CONTINUE TO OPPOSE THE IDEA ARGUING THAT AIR STRIKES WOULD INCREASE THE RISK TO THEIR PEACEKEEPERS AND DERAIL RELIEF DELIVERIES AND POLITICAL NEGOTIATIONS TO END THE CONFLICT BRITISH FOREIGN SECRETARY DOUGLAS HURD WARNED YESTERDAY THAT A RETALIATORY AIR STRIKE MAY YIELD SIMPLY ONE DAY OF SATISFACTION FOLLOWED NOT BY THE LIFTING OF THE SIEGE BUT BY ITS INTENSIFICATION A SENIOR US OFFICIAL SAID YESTERDAY THAT THE ADMINISTRATION MAY NOW BE WILLING TO BECOME MORE INVOLVED IN NEGOTIATIONS TO BRING AN END TO THE BRUTAL BALKAN CONFLICT ONE IDEA THE OFFICIAL SAID WOULD BE TO SEND A SPECIAL ENVOY TO SARAJEVO TO HELP THE MUSLIMLED GOVERNMENT CRAFT A NEW PEACESETTLEMENT MAP UNTIL NOW THE US HAS REFUSED EUROPEAN CALLS TO JOIN IN THE NEGOTIATING PROCESS SAYING IT WOULDN'T PRESS THE BOSNIAN MUSLIMS TO GO ALONG WITH PARTICULAR PROPOSALS SECRETARY OF STATE WARREN CHRISTOPHER SPENT MUCH OF SUNDAY DISCUSSING BOSNIA WITH NATO ALLIES A SENIOR OFFICIAL DESCRIBED MR CHRISTOPHER'S APPROACH AS SOMEWHERE BETWEEN PRESSING FOR AIR STRIKES AND SOLICITING OPINIONS A TOP EUROPEAN OFFICIAL MEANWHILE SAID THAT THE CLINTON ADMINISTRATION'S CREDIBILITY ON BOSNIA IS EXTREMELY LOW THESE DAYS ESPECIALLY AFTER IT REFUSED EUROPEAN REQUESTS THAT IT GET MORE DEEPLY INVOLVED IN PEACE NEGOTIATIONS SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS SPEAKING ON NBC TELEVISION SAID THAT PRESIDENT CLINTON WOULD HAVE STRONG BIPARTISAN SUPPORT IN THE CONGRESS IF HE DECIDED TO LAUNCH AIR STRIKES WHEN TOLD OF CONGRESSIONAL CALLS FOR AIR STRIKES MR CLINTON RESPONDED IT'S VERY WELL FOR THESE MEMBERS OF CONGRESS TO SAY THAT THEY DON'T HAVE CONSTITUENTS ON THE GROUND AMERICAN C130 TRANSPORT PLANES FERRIED MEDICINE AND SUPPLIES INTO SARAJEVO YESTERDAY AND FLEW OUT DOZENS OF THE WOUNDED FOR MEDICAL TREATMENT AT A US MILITARY HOSPITAL IN GERMANY IN ALL 200 PEOPLE WERE WOUNDED IN SATURDAY'S ATTACK THE SECOND IN TWO DAYS ON FRIDAY A SERBLAUNCHED MORTAR BARRAGE KILLED 10 PEOPLE LINED UP FOR FOOD IN SARAJEVO 9402070103 940207 FLIGHT INTERNATIONAL IN CHAPTER 11 NEWPORT NEWS VA FLIGHT INTERNATIONAL GROUP INC SAID IT AND THREE OF ITS SUBSIDIARIES HAVE FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE AVIATIONSERVICES COMPANY SAID IT HAS REACHED CONSENSUS IN PRINCIPLE WITH THE MAJORITY OF ITS INSTITUTIONAL LENDERS FOR A DEBT RESTRUCTURING IT ALSO SAID IT EXPECTS TO EMERGE FROM REORGANIZATION AS A PROFITABLE COMPANY COMPANY OFFICIALS COULDN'T BE REACHED FOR FURTHER DETAILS THE COMPANY'S STOCK WAS DELISTED BY THE NASDAQ STOCK MARKET SEVERAL YEARS AGO 9402070102 940207 PEPPERAND SALT WITH SUGAR AND COFFEE AND FAT BUT WE CAN'T EVEN HAVE THAT AND WALLETS OVER HERE 9402070101 940207 LETTERS TO THE EDITOR A FAMILIAR THREAT TO WIT ON THE 1949 INDEPENDENCE DAY THE SAME NEWSPAPER REPORTED A SPEECH BY KIM ILSUNG IN WHICH HE STATED THAT THE 1950 INDEPENDENCE DAY WOULD BE CELEBRATED IN SEOUL INTERESTING IS IT NOT 9402070100 940207 INTERNATIONAL YELTSIN STILL SEEKS MARKET REFORM FOR RUSSIA EXAIDE GAIDAR SAYS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW SINCE REFUSING LAST MONTH TO SERVE IN RUSSIA'S INCREASINGLY CONSERVATIVE CABINET YEGOR GAIDAR IS FREQUENTLY ASKED WHETHER PRESIDENT BORIS YELTSIN HAS ABANDONED THE REFORM COURSE MR GAIDAR SET FOR RUSSIA TWO YEARS AGO WHY DON'T YOU ASK HIM YOURSELF MR GAIDAR SUGGESTS IN AN INTERVIEW ADVISED THAT THIS ISN'T POSSIBLE MR GAIDAR TRIES TO RESPOND CHOOSING HIS WORDS CAREFULLY YELTSIN HASN'T CHANGED HIS ATTITUDE TOWARD MARKET REFORM SAYS THE 37YEAROLD ECONOMIST WHO ONCE WAS MR YELTSIN'S MOST TRUSTED ADVISER BUT YELTSIN'S ESTIMATIONS OF RUSSIA'S POLITICAL AND SOCIAL REALITIES HAVE CHANGED WHAT THAT MEANS POLITICALLY ISN'T YET CLEAR WHEN MR GAIDAR AND REFORMIST FINANCE MINISTER BORIS FYODOROV QUIT THE CABINET LAST MONTH THEY LEFT ECONOMIC POLICY FIRMLY IN THE HANDS OF PRIME MINISTER VIKTOR CHERNOMYRDIN WHO IS LIKELY TO SLOW RUSSIA'S MOVE TOWARD THE FREE MARKET THE FOCUS NOW ISN'T SO MUCH ON THE MARKET AS IT IS ON REVIVING STATE INDUSTRIES WITH OLDFASHIONED STATE SUPPORT THE ONLY CHANCE TO BLOCK THE RETURN TO SOVIETSTYLE ECONOMICS SEEMS TO RESIDE IN MR YELTSIN WHO RETAINS SUBSTANTIAL POWERS UNDER RUSSIA'S NEWLY ADOPTED CONSTITUTION YELTSIN IS THE STRONGEST POLITICAL FACTOR IN FAVOR OF REFORM IN RUSSIA SAYS MR GAIDAR BUT FOR NOW HE SAYS THE PRESIDENT IS STANDING ON THE SIDELINES PASSIVELY WAITING FOR THE GOVERNMENT TO ANNOUNCE ITS NEW PROGRAMS WHAT HAPPENED TO BORIS YELTSIN DOES HE STILL SUPPORT RUSSIA'S RADICAL ECONOMIC REFORMS THESE ARE THE MILLIONDOLLAR QUESTIONS FOR RUSSIA'S ECONOMY AND ONES THAT MR GAIDAR CAN'T ANSWER THE PRESIDENT HIS AIDES SAY WAS STUNG BY THE RESULTS OF THE DEC 12 PARLIAMENTARY ELECTION IN THE VOTE THE PROREFORM PARTY RUSSIA'S CHOICE HEADED BY MR GAIDAR FARED FAR WORSE THAN ANTICIPATED THE MAIN BENEFICIARIES WERE THE REVIVED COMMUNIST PARTY AND THE ULTRANATIONALIST PARTY OF VLADIMIR ZHIRINOVSKY MR GAIDAR BELIEVES VOTERS DIDN'T ACTUALLY REJECT MARKET REFORM RATHER HE SAYS THEY VOTED AGAINST THE REFORMERS TO PROTEST RISING CRIME AND OFFICIAL CORRUPTION NONETHELESS THE POLITICAL WINDS HAVE SHIFTED AND MR GAIDAR BECAME A CASUALTY SENSING THE CONSERVATIVE SHIFT HE DECIDED TO QUIT THE CABINET ON JAN 13 DURING THE VISIT TO RUSSIA OF PRESIDENT BILL CLINTON TO AVOID AWKWARD TIMING MESSRS YELTSIN AND GAIDAR AGREED TO POSTPONE THE ANNOUNCEMENT UNTIL JUST AFTER MR CLINTON DEPARTED THAT ACTUALLY PROVED EMBARRASSING FOR MR CLINTON SINCE THE ADMINISTRATION SPENT MOST OF ITS TIME IN MOSCOW LAUDING THE STRENGTH OF RUSSIA'S REFORM TEAM ONLY TO SEE IT FALL APART AS SOON AS THE PRESIDENTIAL VISIT ENDED THE TIMING WAS UNFORTUNATE CONCEDES MR GAIDAR SITTING IN A SPACIOUS OFFICE IN HIS ECONOMIC THINK TANK IN CENTRAL MOSCOW THIS IS MR GAIDAR'S SECOND FALL FROM POWER A YEAR AGO WHEN MR YELTSIN PROPOSED HIM AS PRIME MINISTER PARLIAMENT REFUSED TO CONFIRM THE CHOICE MR YELTSIN ABANDONED MR GAIDAR AND TAPPED MR CHERNOMYRDIN A FORMER SOVIET GAS INDUSTRY BOSS SEVERAL MONTHS LATER MR GAIDAR REJOINED THE GOVERNMENT AS A FIRST DEPUTY TO MR CHERNOMYRDIN MR YELTSIN'S RECENT INACTIVITY HAS BREATHED NEW LIFE INTO THE ART OF KREMLIN WATCHING HE HAS BEEN PRONE IN THE PAST TO PROLONGED AND UNEXPLAINED PERIODS OF PASSIVITY BUT IT SEEMS NOTEWORTHY THAT HE HASN'T COME TO THE AID OF HIS BELEAGUERED REFORM TEAM INDEED MR GAIDAR NOTES THAT MR YELTSIN MADE NO EFFORT TO BLOCK HIS RESIGNATION LAST MONTH MR YELTSIN IS DUE FINALLY TO WEIGH IN ON THE DEBATE NEXT WEEK DURING HIS FIRST SPEECH TO THE STATE DUMA THE LOWER HOUSE OF PARLIAMENT AIDES TO MR YELTSIN ADVISE THE CURIOUS TO WATCH THE SPEECH BUT SEEM UNCLEAR AS TO WHAT MR YELTSIN WILL SAY IT MAY WELL BE THAT MR YELTSIN WILL BLESS MR CHERNOMYRDIN'S EFFORTS TO LAUNCH A MORE CAUTIOUS REFORM PROGRAM IF THE PROGRAM SUCCEEDS MR YELTSIN COULD TRY TO SHARE THE CREDIT IF IT PRODUCES A MUCHFEARED OUTBREAK OF HYPERINFLATION DEFINED AS MONTHLY INFLATION OF MORE THAN 50 MR YELTSIN MAY MOVE TO REMOVE HIS PRIME MINISTER AND BRING BACK THE REFORMERS WOULD MR GAIDAR SERVE IN THE GOVERNMENT FOR A THIRD TIME WE'LL SEE HE SAYS WITH A SMILE UNLIKE MR FYORODOV WHO BLASTED THE ONGOING SHIFT IN POLICY AS AN ECONOMIC COUP MR GAIDAR IS HESITANT TO CRITICIZE THE NEW GOVERNMENT AT LEAST UNTIL IT OUTLINES ITS PLANS FOR THIS YEAR NONETHELESS HE WARNS OF THE RISING POWER OF THE LOBBIES THAT HE ONCE TRIED WITH ONLY PARTIAL SUCCESS TO SMASH THE AGRICULTURE DEFENSE AND ENERGY SECTORS TODAY THESE LOBBIES ARE REPRESENTED IN THE TOP RANKS OF GOVERNMENT IN THE END IT MAY BE UP TO MR YELTSIN TO TRY TO BLOCK DEMANDS FOR CHEAP INFLATIONARY CREDITS TO RUSSIA'S AILING ECONOMIC SECTORS THE NEW CONSTITUTION PUTS IN THE HANDS OF THE PRESIDENT WAYS TO FIGHT THE LOBBYISTS' PRESSURE MR GAIDAR SAYS METHODS WHICH INCLUDE THE POWER TO VETO LEGISLATION AND TO BLOCK EXPENDITURES 9402070099 940207 NEW STOCK LISTINGS THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 10 NEW LISTINGS INCLUDING SEVEN INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MORGAN STANLEY AFRICA INVESTMENT FUND INC NEW YORK A CLOSEDEND FUND UNDER AFF AND WALDEN RESIDENTIAL PROPERTIES INC DALLAS A REAL ESTATE INVESTMENT TRUST WDN THE BIG BOARD ALSO BEGAN TRADING THE CLASS A COMMON STOCK OF HEALTH SYSTEMS INTERNATIONAL INC WOODLAND HILLS CALIF UNDER MQ A MANAGED HEALTHCARE COMPANY FORMED BY THE MERGER OF QUALMED INC AND HN MANAGEMENT HOLDINGS INC AND THE AMERICAN DEPOSITARY SHARES OF EMPRESAS LA MODERNA SA MONTERREY MEXICO A CIGARETTE MAKER ELM THE COMPANY'S SHARES ALSO TRADE ON THE MEXICAN STOCK EXCHANGE THE NASDAQ BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS ON ITS NATIONAL MARKET SYSTEM DIGITAL LINK CORP SUNNYVALE CALIF A MAKER OF HIGHSPEED DIGITAL ACCESS PRODUCTS DLNK EQUITY MARKETING INC NEW YORK A TOY AND GIFT MAKER EMAK ESMOR CORRECTIONAL SERVICES INC MELVILLE NY AN OPERATOR OF CORRECTIONAL AND DETENTION FACILITIES ESMR IGEN INC ROCKVILLE MD A MAKER OF DIAGNOSTIC SYSTEMS BASED ON ELECTROCHEMILUMINESCENCE IGEN MAPINFO CORP TROY NY A MAKER OF DESKTOP MAPPING SOFTWARE AND OTHER PRODUCTS MAPS PARCPLACE SYSTEMS INC SUNNYVALE CALIF A MAKER OF OBJECTORIENTED APPLICATION DEVELOPMENT TOOLS PARQ AND USA MOBILE COMMUNICATIONS HOLDINGS INC CINCINNATI A PAGING SERVICES COMPANY USAM NASDAQ ALSO BEGAN TRADING WARRANTS OF ECOGEN INC LANGHORNE PA UNDER EECNW CLASS B WARRANTS OF HEALTHCARE IMAGING SERVICES INC MIDDLETOWN NJ HISSZ AND COMMON SHARES OF ROANOKE GAS CO ROANOKE VA RGCO A NATURAL GAS DISTRIBUTION AND SALES COMPANY THE AMERICAN STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON THE AMERICAN DEPOSITARY RECEIPTS OF EMPRESA NACIONAL DE ELECTRICIDAD SA AND REPSOL SA TOMORROW AMEX ALSO LISTED BEAR STEARNS & COS EQUITYLINKED TERM NOTES AMEX WILL ALSO BEGIN TRADING OPTIONS ON CONTINENTAL AIRLINES INC AND WINNEBAGO INDUSTRIES INC TOMORROW AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING WIZ TECHNOLOGY INC THE STOCK PREVIOUSLY TRADED OVER THE COUNTER THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON THE ADR'S OF EMPRESA NACIONAL DE ELECTRICIDAD SA AND ON THE ADR'S OF REPSOL SA TOMORROW THE CBOE BEGAN TRADING OPTIONS ON THE FOLLOWING STOCKS ALIAS RESEARCH INC CARL KARCHER ENTERPRISES INC GUPTA CORP HEALTH SYSTEMS INTERNATIONAL INC MICROAGE INC MILLICOM INTERNATIONAL CELLULAR SA AND WESTCOTT COMMUNICATIONS INC TOMORROW THE CBOE WILL BEGIN TRADING OPTIONS ON CONTINENTAL AIRLINES CLASS B AND WINNEBAGO INDUSTRIES INC TODAY THE CBOE WILL LIST OPTIONS ON THE NASDAQ 100 INDEX 9402070098 940207 INTERNATIONAL SPANISH FOREIGN INVESTMENT FALLS MADRID DIRECT SPANISH INVESTMENT ABROAD IN 1993 FELL 15 TO 44284 BILLION PESETAS 31 MILLION FROM 51806 BILLION PESETAS IN 1992 THE FINANCE MINISTRY SAID THE OVERALL DECLINE WAS LESS THAN THE 18 DROP SEEN IN INVESTMENT FROM 63320 BILLION PESETAS IN 1991 THE MINISTRY NOTED THE BIGGEST PROPORTION OF DIRECT SPANISH INVESTMENT ABOUT 57 WENT TO EUROPEAN UNION COUNTRIES COMPARED WITH 56 IN 1992 ABOUT 15 OF SPANISH INVESTMENT ABROAD WENT TO LATIN AMERICA SHARPLY UP FROM 1992 LEVELS OF 34 AND NEAR 1991 LEVELS OF 12 TAX HAVENS ATTRACTED 13 OF DIRECT SPANISH INVESTMENT COMPARED WITH 87 IN 1992 WHILE AFRICAN COUNTRIES DREW 46 OF INVESTMENT COMPARED WITH 66 IN 1992 9402070097 940207 INTERNATIONAL ECONOMIC OUTLINE FOR A GRAYING NATION LURKS BEHIND CURRENT UPROAR IN JAPAN BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TO UNDERSTAND JAPAN'S LATEST POLITICAL UPROAR LOOK INTO THE CRYSTAL BALL OF THE NATION'S POWERFUL ECONOMIC PLANNERS IN THE YEAR 2020 THE FINANCE MINISTRY SEES A JAPAN THAT IS ALL GRAY A NATION IN WHICH TWO WORKERS MUST SUPPORT EACH RETIREE DOWN FROM FIVE PER PENSIONER TODAY ITS SOLUTION INCREASE SALES LEVIES NOW DESPITE TODAY'S RECESSION SO THAT JAPAN CAN BROADEN ITS TAX BASE PROMISING TO BOOST LEVIES IN THE MIDDLE OF A RECESSION MAY SEEM CRAZY TO AMERICANS BUT PRIME MINISTER MORIHIRO HOSOKAWA DELIVERED A TAXREFORM BLUEPRINT LAST WEEK THAT WOULD CUT INCOME TAXES NOW TO BOOST THE ECONOMY AND MAKE UP THE DIFFERENCE LATER BY MORE THAN DOUBLING THE NATIONAL CONSUMPTION TAX MR HOSOKAWA'S TAXINCREASE ANNOUNCEMENT TRIGGERED AN UPRISING IN HIS SEVENPARTY COALITION FACED WITH THE PROSPECT OF MASS DEFECTIONS AND POSSIBLY THE GOVERNMENT'S COLLAPSE MR HOSOKAWA DROPPED THE PLAN HE HOPES TO FIND SOME SORT OF COMPROMISE TODAY EVEN IF MR HOSOKAWA MANAGES TO STRIKE A SETTLEMENT THE FIGHT OVER TAX POLICY IS REVEALING IN THE FACE OF STRONG PRESSURE TO STIMULATE THE ECONOMY JAPAN'S DOMINANT IMPULSE IS TO SAVE FOR ITS OLD AGE THIS OBSESSION HAS BIG IMPLICATIONS FOR THE US TIGHT SPENDING ALREADY HAS PROLONGED JAPAN'S RECESSION MANY ECONOMISTS ARGUE IT ALSO INTENSIFIES THE POLITICAL CONFUSION AT HOME DEFLECTING JAPAN'S ATTENTION FROM CRITICAL TRADE NEGOTIATIONS WITH WASHINGTON AND TOKYO'S TIGHTWAD FISCAL POLICIES ARE A MAJOR FACTOR SUSTAINING ITS HUGE TRADE SURPLUSES THE MINISTRY'S EMPHASIS ON GOVERNMENT SAVINGS HAS BECOME COUNTERPRODUCTIVE SAYS JAMES VESTAL ECONOMIST AT BARCLAYS DE ZOETE WEDD IN TOKYO IT SEEMS TO BE USING ITS POWER TO ENSURE A BUDGET SURPLUS SAYS MR VESTAL A PROGRAM HE TERMS MISGUIDED THE PROBLEMS POSED BY AN ELDERLY POPULACE HAVE BEEN EATING AT JAPANESE PLANNERS SINCE 1970 THAT'S WHEN CITIZENS AGED 65 AND OVER FIRST ACCOUNTED FOR 7 OF THE POPULATION CONSIDERED A BENCHMARK OF AN AGED SOCIETY SINCE THEN JAPAN'S LEADERS HAVE BEEN DRILLING INTO VOTERS' HEADS THE GRAVITY OF THE DEMOGRAPHIC PROBLEM SIRENS SOUNDED IN 1989 WHEN THE NUMBER OF CHILDREN BORN TO THE AVERAGE JAPANESE WOMAN IN HER LIFETIME FELL TO 157 BELOW THE PACE NEEDED TO SUSTAIN THE POPULATION THE PUBLIC HAS ABSORBED THE LESSON IN A 1991 GOVERNMENT SURVEY 86 OF THOSE POLLED SAID THEY WERE CONCERNED ABOUT JAPAN'S AGING POPULATION NOTABLY THE WORRY CITED BY MOST RESPONDENTS WAS THE FISCAL HEALTH OF THE PENSION SYSTEM THE FINANCE MINISTRY'S OWN PET ANXIETY WITH THAT KIND OF PUBLIC SUPPORT FEW POLITICIANS DARE QUESTION THE MINISTRY'S REASONING EVEN THE SOCIALISTS WHO HAVE LONG OPPOSED THE SALES TAX SAY THEY AGREE THAT JAPAN NEEDS HIGHER VALUEADDED LEVIES GIVEN THE UPCOMING AGING SOCIETY WE DON'T THINK THE CURRENT TAX SYSTEM IS RIGHT SAYS HARUMICHI HOSOYA A MEMBER OF THE SOCIALISTS' TAXPOLICY COMMITTEE THE DEMOGRAPHICDISASTER SCENARIO HAS ENABLED THE MINISTRY TO PUSH ITS PARSIMONIOUS FISCAL POLICIES IN THE 1970S AND 1980S JAPAN'S PORKBARREL POLITICIANS RAN UP A STRING OF HUGE BUDGET DEFICITS EVENTUALLY THE MINISTRY SHAMED LEGISLATORS INTO REINING IN THEIR SPENDING THAT FREED THE BUREAUCRATS TO START SALTING AWAY CASH FOR THE FUTURE FROM 1987 TO 1992 AS THE US GOVERNMENT'S DEFICIT BALLOONED JAPAN RACKED UP LARGE SURPLUSES THE DOMINANCE OF THIS SCENARIO EXPLAINS WHY MR HOSOKAWA AT GREAT POLITICAL RISK BACKED THE MINISTRY'S AGENDA WE HAVE PREPARED THE VISION QUITE CAREFULLY SAYS ONE FINANCE MINISTRY BUDGET OFFICIAL YET FINANCE MINISTRY OFFICIALS ALSO ARE CONCERNED WITH THE TRADE IMPLICATIONS OF THEIR FISCAL POLICY AND DENY THEY ARE TRYING TO PILE UP BUDGET SURPLUSES THAT IS WHY LAST WEEK DURING THE CURRENT TRADE NEGOTIATIONS WITH WASHINGTON TOP MINISTRY LEADERS CALLED IN A GROUP OF US REPORTERS TO ARGUE THAT JAPAN ISN'T AS FRUGAL AS IT'S CRACKED UP TO BE THE OFFICIALS HANDED OUT A DOCUMENT CONTAINING BUDGETBALANCE PROJECTIONS MADE BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE FIGURES SHOW THAT JAPAN WILL RUN A DEFICIT IN ITS GENERALGOVERNMENT BUDGET COMBINING ITS SOCIALSECURITY CENTRAL AND LOCAL GOVERNMENT ACCOUNTS IN 1993 1994 AND 1995 WHAT'S MORE JAPAN'S DEFICIT IN 1995 WILL EXCEED THAT OF THE PROFLIGATE US AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT JAPAN'S FISCAL BALANCE IS UNDOUBTEDLY WORSENING AS TAX REVENUE FALLS AND THE GOVERNMENT SPENDS MORE TO SPUR THE ECONOMY WHAT THE OFFICIALS NEGLECTED TO MENTION HOWEVER WERE THE OECD'S ESTIMATES OF JAPAN'S SOCALLED STRUCTURAL BALANCE A MEASURE OF WHAT THE BALANCE WOULD BE IF THE ECONOMY WERE RUNNING AT FULL EMPLOYMENT ON THAT BASIS SAYS THE OECD JAPAN WILL RUN A SURPLUS IN 1995 SOME ECONOMISTS CONSIDER THE STRUCTURAL BALANCE A BETTER INDICATOR OF UNDERLYING FISCAL HEALTH THE DISTINCTION MATTERS GREATLY TO WASHINGTON SINCE A HEALTHIER BALANCE SHEET WOULD MEAN JAPAN COULD SPLURGE A BIT MORE FRUGALITY LEADS THE JAPANESE TO CONSUME FEWER GOODS AND SERVICES THAN THEY PRODUCE AND HENCE RUN A TRADE SURPLUS WITH THE US AND OTHER NATIONS THE FINANCE MINISTRY'S REPLY TO SUCH CONCERNS IS SIMPLE WAIT A FEW DECADES THE TRADE SURPLUS WILL TAKE CARE OF ITSELF MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9402070096 940207 WHO'S NEWS TIMKEN CO TIMKEN CO CANTON OHIO J CLAYBURN LA FORCE JR 65 YEARS OLD EMERITUS DEAN AND PROFESSOR AT THE JOHN E ANDERSON GRADUATE SCHOOL OF MANAGEMENT AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES WAS ELECTED A DIRECTOR OF THIS MAKER OF HIGHLY ENGINEERED BEARINGS AND ALLOY STEELS HE SUCCEEDS RICHARD A GULLING A FORMER VICE PRESIDENT OF FINANCE AND A DIRECTOR SINCE 1976 WHO RETIRED FROM THE BOARD IN COMPLIANCE WITH ITS RETIREMENT POLICY TIMKEN'S BOARD REMAINS AT 12 MEMBERS 9402070095 940207 NORTH KOREA'S UNLIKELY MESSENGER BY MELANIE KIRKPATRICK HONG KONG OF ALL THE TANTALIZING GLIMPSES OF THE HERMIT KINGDOM OF NORTH KOREA BILLY GRAHAM'S MAY BE THE MOST TANTALIZING OF ALL FOR THE AMERICAN EVANGELIST WHO JUST CONCLUDED A VISIT TO PYONGYANG AT THE INVITATION OF THE NORTH KOREANS PRESIDENT KIM IL SUNG ISN'T THE DEMON HE APPEARS TO BE TO THE REST OF THE WORLD HE CAN BE TOUGH BUT HE HAS A TENDER PLACE IN HIS HEART MR GRAHAM SAID IN AN INTERVIEW THURSDAY NO SAINT EVER SPOKE MORE KINDLY OF ANY SINNER AND WHILE AN UNSAINTLY REPORTER PRAYS SHE MAY BE FORGIVEN FOR THINKING LESS CHARITABLE THOUGHTS OF THE MAN WHO RULES WITH AN IRON FIST THE MOST TOTALITARIAN NATION LEFT ON EARTH IT IS NEVERTHELESS NOTABLE THAT MR KIM WOULD USE A MAN OF GOD TO CONVEY A MESSAGE TO PRESIDENT CLINTON MR GRAHAM WON'T SAY WHAT THAT MESSAGE IS BUT HE CHARACTERIZES ITS TONE AS POSITIVE AN AIDE TO MR GRAHAM WAS TO DELIVER THE MESSAGE TO THE WHITE HOUSE FRIDAY MR GRAHAM ALSO CARRIED A PRIVATE MESSAGE FROM MR CLINTON THAT MR KIM FOUND VERY INTERESTING THE RECLUSIVE NORTH KOREAN PRESIDENT IS SEEN IN PUBLIC ABOUT AS OFTEN AS CHINA'S DENG XIAOPING AND RUMORS ABOUT THE STATE OF HIS HEALTH ABOUND AT A NEWS CONFERENCE IN HONG KONG MR GRAHAM DESCRIBED MR KIM AS VIGOROUS AND IN GOOD HEALTH A GROWTH ON HIS NECK THAT OTHER VISITORS HAVE REPORTED AND THAT DOESN'T SHOW UP IN THE CAREFULLY STAGED PHOTOS THAT LEAVE THE COUNTRY HAS BEEN THERE BOTH TIMES I'VE BEEN IN NORTH KOREA SAID MR GRAHAM MY STRONG IMPRESSION WAS THAT HE CONTINUES TO BE THE DOMINANT FIGURE IN NORTH KOREAN POLITICAL AND SOCIAL LIFE BESIDES THE POLITICAL TOPICS THAT MR GRAHAM WON'T DIVULGE THE TWO MEN ALSO DISCUSSED MR KIM'S EARLY EXPOSURE TO CHRISTIANITY AS A BOY THE YOUNG KIM WENT TO CHURCH WITH HIS MOTHER WHO WAS A CHRISTIAN AN EARLY INFLUENCE ON HIS LIFE FROM ABOUT AGE SEVEN WAS A KOREAN PRESBYTERIAN MINISTER MR GRAHAM PREACHED IN THE CHURCH THAT MR KIM BUILT IN MEMORY OF HIS MOTHER NEAR HIS BOYHOOD HOME IN CHILGOL ON THE OUTSKIRTS OF PYONGYANG STORIES OF THE INFLUENCE OF CHRISTIANITY ON HIS EARLY LIFE ARE DETAILED IN MR KIM'S UNFINISHED AUTOBIOGRAPHY WHICH MR GRAHAM PRAISES AS THE EASIEST MEMOIR OR AUTOBIOGRAPHY I'VE EVER READ IT READS LIKE A NOVEL HE SAYS YOU CAN'T PUT IT DOWN MR GRAHAM IS UP TO VOLUME FOUR WHICH ENDS JUST BEFORE THE KOREAN WAR NONE OF THIS IS TO SAY THAT RELIGIOUS FREEDOM EXISTS IN NORTH KOREA QUITE THE CONTRARY IT WASN'T UNTIL THE LATE '80S THAT MR KIM PERMITTED THREE CHURCHES TO BE FORMED TWO PROTESTANT ONE CATHOLIC AS WELL AS SOME SMALL CONGREGATIONS THAT MEET IN PRIVATE HOMES STEPHEN LINTON A COLUMBIA UNIVERSITY KOREA SCHOLAR WHO IS TRAVELING WITH MR GRAHAM SAYS NORTH KOREA OFFICIALLY PLACES THE NUMBER OF CHRISTIANS AT ABOUT 10000 THIS COMPARES WITH THE 25 TO 50 OF THE SOUTH KOREAN POPULATION ESTIMATED TO BE CHRISTIAN KOREA HAS A LONG HISTORY OF CHRISTIANITY BEFORE WORLD WAR II AT THE TIME THE 81YEAROLD MR KIM WAS GROWING UP PYONGYANG WAS THE CENTER OF MISSIONARY ACTIVITY IN ASIA WHERE IT WAS KNOWN AS THE JERUSALEM OF THE EAST MR GRAHAM'S WIFE RUTH WHO IS THE DAUGHTER OF MISSIONARIES IN CHINA WENT TO HIGH SCHOOL IN PYONGYANG ALL THAT CHANGED IN THE LATE '40S WHEN KIM IL SUNG BACKED BY THE POSTWAR SOVIET OCCUPIERS OF THE NORTH BECAME PRESIDENT AND OUTLAWED RELIGION MANY CHRISTIANS FLED SOUTH BILLY GRAHAM IS IN ASIA ON ONE OF THE CRUSADES THAT HAVE TAKEN HIM TO MORE THAN 180 COUNTRIES OR TERRITORIES FOUR RALLIES IN TOKYO LAST MONTH DREW ABOUT 120000 PEOPLE IN A COUNTRY WHERE ONLY ABOUT 1 OF THE POPULATION IS CHRISTIAN NUMBERS ARE UNCERTAIN BUT CHRISTIANITY APPEARS TO BE WINNING CONVERTS IN MUCH OF ASIA CHINA HAS ABOUT 60 MILLION CHRISTIANS AND MR GRAHAM SAYS CHRISTIANITY IS GROWING RAPIDLY IN THAILAND A BUDDHIST COUNTRY AS WELL AS IN PREDOMINANTLY ISLAMIC MALAYSIA THERE IS A RESURGENCE OF CHRISTIANITY IN VIETNAM WHICH HAS ABOUT FIVE MILLION CATHOLICS NOW COMPARED WITH 15 MILLION IN 1975 FUNDAMENTALIST PROTESTANTISM IS CATCHING ON IN THE PHILIPPINES WHICH IS OVERWHELMINGLY CATHOLIC MR GRAHAM ATTRIBUTES THE GROWING INTEREST IN HIS RELIGION IN PART TO THE RAPID CHANGES THAT ASIANS ARE EXPERIENCING IN THEIR CULTURES ECONOMIES AND POLITICS THE OLD TRADITIONS HAVE BEEN CHANGING HE SAYS THERE'S A VOID AT THE SAME TIME HE SEES A LINK BETWEEN CHRISTIANITY AND FREEDOM CHRISTIANITY DOES TEACH FREEDOM HE SAYS GOD THROUGH THE BIBLE TEACHES FREEDOM OF CHOICE IN EVERYTHING SPEAKING OF THE TROUBLED RELATIONS BETWEEN THE US AND NORTH KOREA MR GRAHAM SAID I BELIEVE THE NORTH KOREAN PEOPLE AND THEIR LEADERSHIP WANT TO MOVE BEYOND THE RHETORIC OF THE COLD WAR AND FIND A PERMANENT SOLUTION TO THE PROBLEMS THAT SEPARATE US AT ABOUT THE SAME TIME THAT HE WAS UTTERING THESE WORDS IN HONG KONG A STATEMENT OF AN ENTIRELY DIFFERENT TONE WAS HEARD FROM PYONGYANG APPARENTLY IN RESPONSE TO THE RESOLUTION PASSED BY THE SENATE TUESDAY URGING MR CLINTON TO SEND TACTICAL NUCLEAR WEAPONS BACK TO SOUTH KOREA IF THE IMPASSE WITH PYONGYANG CONTINUES THE OFFICIAL KOREAN CENTRAL NEWS AGENCY CARRIED A COMMENTARY THURSDAY THAT SAID IN PART IF THE US TAKES A STANCE OF PRESSURE AGAINST US OUR REACTION WILL BE A HUNDRED TIMES STRONGER AND IT WILL BE CARRIED INTO PRACTICAL ACTION WE CANNOT SIT BACK AND WATCH THE MANEUVERS OF THE US TO ISOLATE AND STIFLE US IF THESE HOSTILE WORDS DON'T SOUND LIKE THOSE OF THE MAN BILLY GRAHAM MET PERHAPS IT'S BECAUSE PRESIDENT KIM ISN'T AS SURE OF HIMSELF AS HE ONCE WAS WITH AGE CAN COME WISDOM IN SPECULATING ON WHY PRESIDENT KIM CALLED ON HIM AS A MESSENGER MR GRAHAM SAID SOME OF HIS EARLY EXPERIENCES MAY BE INFLUENCING HIM NOW IT'S IMPOSSIBLE TO SEE INTO THE HEART OF ANY MAN MUCH LESS THAT OF A MAN WHO HAS SPENT A LIFETIME ISOLATING HIMSELF AND HIS PEOPLE FROM THE WORLD AND FROM GOD YET BILLY GRAHAM HAS A WAY OF TOUCHING THE HEARTS OF MEN AND WOMEN EVERYWHERE IF HE CAN TOUCH THE HEART OF ONE RECLUSIVE OLD ATHEISTIC COMMUNIST WHO LISTENED TO THE WORD OF GOD WITH HIS MOTHER THE WORLD WILL BE BETTER FOR IT MS KIRKPATRICK IS ASSISTANT EDITOR OF THE JOURNAL'S EDITORIAL PAGE 9402070094 940207 BUSINESS BRIEF NORTHROP TEAM FACES A LOSS OF 1 BILLION ON MISSILE PROGRAM LOS ANGELES THE NORTHROP CORP TEAM BUILDING A NEXTGENERATION STEALTHY CRUISE MISSILE STANDS TO LOSE AT LEAST 1 BILLION ON THE PROGRAM BY 1997 ACCORDING TO AIR FORCE OFFICIALS THE OFFICIALS WHO OVERSEE DEVELOPMENT OF THE TRISERVICE STANDOFF ATTACK MISSILE ARE QUOTED IN TODAY'S EDITION OF THE DEFENSE NEWSLETTER DEFENSE WEEK NORTHROP BASED IN LOS ANGELES HAS REPORTED 603 MILLION IN LOSSES ON THE FIXEDPRICE PROGRAM SO FAR THE COMPANY IS EXPECTED TO LOSE AS MUCH AS 750 MILLION BRIG GEN RICHARD ROELLIG SAID IN THE INTERVIEW AND IN WRITTEN FOLLOWUP RESPONSES THE REST OF THE PROJECTED 1 BILLION LOSSES ARE BEING INCURRED BY ABOUT 25 SUBCONTRACTORS A NORTHROP SPOKESMAN SAID HE IS FAMILIAR ONLY WITH THE COMPANY'S LOSSES DECLARED TO DATE HE ALSO CONFIRMED THE COMPANY HAS INCREASED OVERSIGHT OF THE PROGRAM THE ARMY HAS BEEN GRANTED PERMISSION TO LEAVE THE PROGRAM MEANING THE NUMBER OF MISSILES TO BE BOUGHT HAS DROPPED TO 4525 FROM 6650 THE AIR FORCE OFFICIALS SAID THE AIR FORCE ESTIMATES THE TOTAL COST OF EACH AIR FORCE MISSILE AT 21 MILLION WITH A NAVY VARIANT ESTIMATED TO COST 52 MILLION EACH UNTIL NOW THE PROGRAM HAS BEEN HIGHLY CLASSIFIED MEANING FEW DETAILS HAVE BEEN AVAILABLE ON COSTS AND PLANNED DELIVERIES 9402070093 940207 ASIAN NATIONS MOVE TO CURB FOREIGNERS' ROLE THREE CENTRAL BANKS TRY TO SLOW INVESTMENTS AND CONTAIN INFLATION BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AS MORE AND MORE FOREIGN INVESTORS JOSTLE THEIR WAY INTO ASIA'S CAPITAL MARKETS THREE OF THE REGION'S MOST POWERFUL CENTRAL BANKS ARE STRUGGLING TO KEEP THE DOORS FROM OPENING TOO FAST OVER THE PAST MONTH MALAYSIA'S BANK NEGARA HAS IMPOSED A SERIES OF RESTRICTIONS ON FOREIGNERS' BANK DEPOSITS AND TAIWAN'S CENTRAL BANK HAS HELPED BLOCK PROPOSALS TO LET FOREIGNERS BUY MORE SHARES ON THE LOCAL STOCK EXCHANGE BANK OF KOREA MEANWHILE SHOWS NO SIGN OF LOOSENING STRICT LIMITS ON FOREIGNERS' STOCK PURCHASES DESPITE FRENZIED DEMAND FROM ABROAD THE SPECIFICS OF EACH CENTRAL BANK'S DILEMMA ARE DIFFERENT BUT ALL FACE THE SAME BASIC CHALLENGE KEEPING SOME OF ASIA'S HOTTEST ECONOMIES GROWING WITHOUT UNLEASHING INFLATION CENTRAL BANKERS FEAR THAT SUDDEN BLASTS OF FOREIGN CASH WILL BLOW THEM OFF THAT TIGHTROPE SOME ALSO FRET THAT INFLOWS OF FOREIGN MONEY WILL PUSH UP THEIR CURRENCIES MAKING EXPORTS LESS COMPETITIVE ASIA STILL WANTS FOREIGN MONEY OF COURSE MOST ASIAN COUNTRIES ARE COUNTING ON HUGE DOLLOPS OF FOREIGN FUNDS TO FINANCE DESPERATELY NEEDED INFRASTRUCTURE PROJECTS AND OTHER INVESTMENT OVER THE NEXT DECADE CHINA THE PHILIPPINES MALAYSIA AND THAILAND ALL HAVE OFFERED GOVERNMENT BONDS OVERSEAS FAMILY COMPANIES THAT ONCE SHUNNED OUTSIDE INVESTORS NOW ARE LISTING SHARES ON FOREIGN STOCK EXCHANGES BUT SOME CENTRAL BANKERS TRYING TO CRAFT POLICIES TO FIGHT INFLATION WORRY THAT THE WHOLE PROCESS IS GOING TOO QUICKLY THE BALANCING ACT BETWEEN CONTROLLING INFLATION AND ATTRACTING FOREIGN FUNDS HAS PROVED PARTICULARLY TRICKY IN MALAYSIA THAT COUNTRY'S CENTRAL BANK BANK NEGARA HAS BEEN BATTLING TO KEEP FOREIGN SPECULATORS FROM BIDDING UP THE MALAYSIAN DOLLAR OR RINGGIT THE PROBLEM IS THAT BANK NEGARA ALSO HAS BOOSTED INTEREST RATES IN AN EFFORT TO RESTRAIN MONEYSUPPLY GROWTH AND CHOKE OFF INFLATION SIXTHMONTH INTERBANK RATES IN MALAYSIA NOW STAND AT AROUND 56 COMPARED WITH THE 35 IN SINGAPORE'S INTERBANK MARKET SO FOREIGNERS HAVE BEEN SNAPPING UP MALAYSIANDOLLAR INVESTMENTS TO LOCK IN HIGH INTEREST RATES AND BET ON A BIG RISE IN THE CURRENCY BANK NEGARA COMMITTED A VERY BIG MISTAKE SAID ALFRED WONG CHIEF ECONOMIST AT WARDLEY INVESTMENT SERVICES HONG KONG LTD A CENTRAL BANK CANNOT CONTROL A COUNTRY'S EXCHANGE RATE AND ITS MONEY SUPPLY THEY CAN ONLY CONTROL ONE OF THOSE THINGS UNDAUNTED BANK NEGARA HAS TAKEN TO FIGHTING FOREIGN DEMAND FOR ITS CURRENCY ANY WAY IT CAN LAST MONTH IT DUMPED RINGGITS ON THE FOREIGNEXCHANGE MARKETS IT ALSO HIT FOREIGN INVESTORS BY LIMITING BANKS' HOLDINGS OF FOREIGN FUNDS THAT AREN'T TRADERELATED AND BARRING MALAYSIANS FROM SELLING SHORTTERM MONETARY INSTRUMENTS TO FOREIGNERS FOR NOW BANK NEGARA SEEMS TO BE PREVAILING THE RINGGIT HAS DECLINED ABOUT 7 AGAINST THE US DOLLAR SO FAR THIS YEAR BUT MANY ECONOMISTS THINK THE SPECULATORS WILL HAVE IT THEIR WAY EVENTUALLY MORGAN STANLEY ASIA LTD HAS TOLD CLIENTS THAT THE MALAYSIAN CURRENCY IS LIKELY TO APPRECIATE THIS YEAR TAIWAN'S DETERMINATION TO KEEP THE NEW TAIWAN DOLLAR RELATIVELY CHEAP HAS PITTED ITS CENTRAL BANK AGAINST FOREIGN STOCK INVESTORS MANY INVESTORS AND BROKERAGE FIRMS BLAME THE CENTRAL BANK'S STAND FOR LEAVING ONE OF ASIA'S MOST INDUSTRIALIZED COUNTRIES WITH A STOCK MARKET THAT HAS BECOME A PARIAH EVEN MAINLAND CHINA'S STOCK MARKETS ALLOW INVESTMENTS BY ANY FOREIGN INDIVIDUAL TAIWAN ALLOWS ONLY AUTHORIZED FOREIGN INSTITUTIONS TO BUY SHARES LAST MONTH TAIWAN'S CENTRAL BANK PERSUADED THE GOVERNMENT TO MAINTAIN A 5 BILLION CEILING ON FOREIGN HOLDINGS OF LISTED TAIWANESE SHARES IF ALL THE CURRENT INVESTMENT APPLICATIONS FROM FOREIGNERS WERE APPROVED FOREIGN HOLDINGS WOULD VASTLY EXCEED THAT CEILING BROKERS SAY THE COUNTRY'S SECURITIES AND EXCHANGE COMMISSION RECENTLY SUGGESTED THAT THE CAP BE RAISED TO 12 BILLION 9402070092 940207 TECHNOLOGY & HEALTH WHITE HOUSE FACES BACKLASH ON POLICY TO PROTECT PRIVATE TELECOMMUNICATIONS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FACES A BACKLASH FROM HIGHTECH COMPANIES OVER ITS DECISION TO PLOW AHEAD WITH A PLAN TO PUSH ONE SYSTEM FOR PROTECTING TELEPHONE AND COMPUTER COMMUNICATIONS THE DECISION COMES AFTER A LENGTHY REVIEW STARTED LAST APRIL WHEN THE ADMINISTRATION UNVEILED THE NEW COMPUTER CHIP WHICH WOULD BE INCLUDED IN ENCRYPTION DEVICES ATTACHED TO TELEPHONES TO SCRAMBLE SOUND OR INFORMATION FOR PRIVACY LAW ENFORCEMENT AGENCIES HOWEVER WOULD HAVE ACCESS TO THE CODE FOR UNSCRAMBLING THE ENCRYPTION COMPUTER COMPANIES CALLED FOR THE REVIEW COMPLAINING THE GOVERNMENT'S ACCESS TO THE CODES WOULD TURN OFF PROSPECTIVE BUYERS PARTICULARLY THOSE OVERSEAS BUT IN BASICALLY DECIDING AGAINST A POLICY SHIFT THE WHITE HOUSE WAS BUOYED BY ARGUMENTS FROM AGENCIES SUCH AS THE NATIONAL SECURITY AGENCY AND THE FEDERAL BUREAU OF INVESTIGATION IN ANNOUNCING THE DECISION VICE PRESIDENT AL GORE DUBBED ENCRYPTION A LAW AND ORDER ISSUE BECAUSE CRIMINALS USE IT TO BYPASS WIRETAPS THE CLINTON ADMINISTRATION WANTS TO MAKE THE NEW TECHNOLOGY CALLED THE CLIPPER CHIP THE STANDARD FOR PRIVATE INDUSTRY AND GOVERNMENT THE NEW TECHNOLOGY STARTED DURING THE BUSH ADMINISTRATION WAS PROMPTED BY THE INCREASING NUMBER OF COMMERCIAL ENCRYPTION TECHNOLOGIES OUT ON THE MARKET TODAY UNDER THE ADMINISTRATION PLAN OFFICIALS AT THE TREASURY DEPARTMENT AND THE COMMERCE DEPARTMENT'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY WOULD HOLD THE SOCALLED ELECTRONIC KEYS TO UNSCRAMBLE THE CLIPPER CHIP'S CODE AND FBI AGENTS OR OTHER LAW ENFORCEMENT OFFICIALS WOULD HAVE ACCESS WITH A COURT ORDER THE ISSUE HAS BECOME A CONTROVERSIAL ONE BETWEEN LAW ENFORCEMENT OFFICIALS AND THE COMPUTER INDUSTRY AND CIVIL LIBERTARIANS IN UNFOLDING DETAILS OF THE ADMINISTRATION'S DECISION MIKE NELSON AN OFFICIAL AT THE OFFICE OF SCIENCE AND TECHNOLOGY POLICY SAID THE ISSUE WAS SO DIFFICULT IT REPRESENTED THE BOSNIA OF TELECOMMUNICATIONS POLICY JERRY BERMAN EXECUTIVE DIRECTOR OF THE ELECTRONIC FRONTIER FOUNDATION A WASHINGTONBASED COMPUTER USERS' CIVIL RIGHTS GROUP SAID THE ADMINISTRATION'S HANDLING OF THE CLIPPER CHIP POLICY COULD MAKE IT AS SUCCESSFUL AS THE BOSNIA POLICY WHICH HAS COME UNDER WIDESPREAD CRITICISM THE CLINTON ADMINISTRATION TRIED TO ACKNOWLEDGE THE WORRIES OF HIGHTECH COMPANIES BY PLEDGING TO STREAMLINE EXPORT LICENSING PROCEDURES FOR COMMUNICATIONS CODING PRODUCTS BUT IT SAID IT WASN'T GOING TO LIFT CURRENT RESTRICTIONS FOR THESE PRODUCTS THE BUSINESS SOFTWARE ALLIANCE A TRADE GROUP REPRESENTING SOFTWARE MAKERS SAID THE RESTRICTIONS THREATEN THE CONTINUED VIABILITY AND SUCCESS OF THE AMERICAN SOFTWARE INDUSTRY DAVID PEYTON A VICE PRESIDENT AT INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA A GROUP WHOSE MEMBERS INCLUDE GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS CORP ARTHUR ANDERSEN & CO'S ANDERSEN CONSULTING UNIT AND MICROSOFT CORP SAID THAT IT'S A COMPLETELY UNSATISFACTORY SITUATION THIS PROPOSAL MET A TIDAL WAVE OF PUBLIC OPPOSITION WHEN THEY PUT IT OUT THERE'S BEEN NO CHANGE 9402070091 940207 WORKPLACE FIRMS DESIGNATE SOME OPENINGS FOR WOMEN ONLY BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL SOME BIG COMPANIES ARE TRYING TO BREAK THEIR GLASS CEILINGS THEY ARE PUTTING OUT THE WORD THAT ONLY WOMEN NEED APPLY FOR SOME OF THEIR TOP JOBS THAT'S A TURNABOUT FROM THE RECENT PAST WHEN WOMEN WERE CONSIDERED LAST IF AT ALL FOR SENIOR POSTS EXECUTIVE RECRUITERS SAY THE NEW PRACTICE ARISING FROM A DESIRE TO DIVERSIFY UPPER MANAGEMENT IS CONTROVERSIAL AND POTENTIALLY ILLEGAL WHEN BUSINESSES EXCLUDE MEN FROM CONSIDERATION FOR LUCRATIVE MANAGERIAL POSTS THEY RISK REVERSE SEXBIAS SUITS AND A DISRUPTIVE LOSS OF MORALE AMONG MALE EMPLOYEES AUTHORITIES SAY THIS MAY BE A TICKING TIME BOMB WAITING TO GO OFF WARNS GLORIA ALLRED A LOS ANGELES LAWYER WHO SPECIALIZES IN WOMEN'S RIGHTS CASES SOME CORPORATIONS TRY TO SIDESTEP THE ISSUE BY TELLING RECRUITERS MERELY THAT THEY WOULD PREFER TO HIRE A WOMAN IF QUALIFIED CANDIDATES EXIST SUCH TARGETED SEARCHES ARE MULTIPLYING DOZENS OF EXECUTIVE WOMEN AND HEADHUNTERS SAY THE TREND HAS DRAMATICALLY INCREASED OVER THE PAST YEAR OR SO SAYS YVONNE JACKSON SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC RECRUITERS SEEKING WOMEN FOR MANAGERIAL SPOTS CALL HER ONCE A WEEK TWO YEARS AGO SHE SAYS SHE GOT SUCH CALLS ONCE EVERY THREE MONTHS INDEED BURGER KING'S SEARCH FOR A WOMAN LANDED MS JACKSON HER SIXFIGURE JOB IN DECEMBER THE COMPANY LOOKED OUTSIDE AFTER INSIDE CONTENDERS FOR THE JOB ALL MALE FAILED TO QUALIFY THE FASTFOOD CHAIN SAYS IT INTERVIEWED ONLY WOMEN BECAUSE ITS CHIEF EXECUTIVE OFFICER JAMES ADAMSON INSISTED THAT SENIOR MANAGEMENT BETTER REFLECT BURGER KING CUSTOMERS NEARLY HALF OF WHOM ARE FEMALE THE SELECTION OF MS JACKSON A FORMER AVON PRODUCTS INC EXECUTIVE ADDED A SECOND WOMAN TO BURGER KING'S 10MEMBER EXECUTIVE COMMITTEE KORN/FERRY INTERNATIONAL THE NATION'S BIGGEST SEARCH FIRM SAYS IT WAS ASKED TO FIND A WOMAN IN 41 OF ITS EXECUTIVE ASSIGNMENTS DURING FISCAL 1993 FIVE YEARS AGO SAYS MADELEINE CONDIT HEAD OF THE FIRM'S US DIVERSITY PRACTICE THAT PROPORTION WOULD HAVE BEEN NIL DURING THE PAST YEAR FIVE COMPANIES ASKED CORPORATE DIRECTIONS A CAREERCOUNSELING AND SEARCH FIRM IN TORRANCE CALIF TO FILL MIDDLEMANAGEMENT AND SENIORLEVEL JOBS WITH WOMEN SAYS GEORGE SCHMUTZ PRESIDENT FOUR SAID WE WILL INTERVIEW MEN BUT WE ARE ONLY GOING TO HIRE WOMEN HE RECOLLECTS ONE COMPANY SAID DON'T WASTE MY TIME SENDING ME MEN' SO I ONLY SENT WOMEN AT KEARNEY EXECUTIVE SEARCH IS GETTING TWICE OR THREE TIMES AS MANY REQUESTS FOR FEMALETARGETED SEARCHES AS IT HAD 18 MONTHS AGO SAYS CHARLES W SWEET PRESIDENT OF THE AT KEARNEY INC DIVISION LAST JUNE FOR EXAMPLE KEARNEY HELPED THE CHICAGO SUNTIMES RECRUIT BERNADETTE SOENS AS CONTROLLER THE 44YEAROLD MS SOENS PREVIOUSLY CHIEF FINANCIAL OFFICER OF A SMALL MANUFACTURER IN NILES ILL IS THE ONLY WOMAN AMONG THE NEWSPAPER'S EIGHT VICE PRESIDENTS SUNTIMES OFFICIALS SAY THEY INTERVIEWED ONLY FEMALE OUTSIDERS FOR THE CONTROLLER'S JOB BECAUSE THE INTERNAL CANDIDATES ALL MEN LACKED SUFFICIENT EXPERIENCE AND BECAUSE MS SOENS'S PREDECESSOR WAS A WOMAN JOSEPH P GAYNOR AN EXECUTIVE VICE PRESIDENT OF THE PARENT CHICAGO SUNTIMES CO SAYS THE COMPANY FIGURED THAT A GOOD WAY TO FIND ANOTHER SENIOR WOMAN WAS TO LOOK IN AREAS LIKE FINANCE WHERE THERE WOULD BE LARGER POOLS OF QUALIFIED WOMEN CANDIDATES OTHER EMPLOYERS AGGRESSIVELY SEEKING FEMALE MANAGERS ALSO PINPOINT SPECIALTIES IN WHICH EXPERIENCED CONTENDERS ARE MORE LIKELY TO BE FOUND INCLUDING HUMAN RESOURCES PUBLIC RELATIONS LEGAL AFFAIRS AND OTHER STAFF FUNCTIONS BUT SOME FEMALE MANAGERS FEAR THE TACTIC WILL PERPETUATE PINK GHETTOS IF WE ARE REALLY GOING TO DIVERSIFY OUR WORKPLACES IT CAN'T JUST BE IN FINANCE OR IN HUMAN RESOURCES ARGUES BEVERLY PIERCE COMMUNICATIONS DIRECTOR OF ALLIEDSIGNAL INC'S BRAKINGSYSTEMS UNIT IN SOUTH BEND IND VIRGINIA LUNDQUIST AN ALLIEDSIGNAL PUBLICAFFAIRS VICE PRESIDENT HELPED TO CHOOSE MS PIERCE FROM A LIST OF FIVE WOMEN I WAS QUITE HAPPY WITH THE FACT WE COULD PUT IN A FEMALE SAYS MS LUNDQUIST THE ONLY SENIOR WOMAN EXECUTIVE IN ALLIEDSIGNAL'S AUTOMOTIVE SECTOR WHICH EMPLOYS 35000 BUT EVEN THOUGH MS PIERCE HAS WORKED OUT WELL MS LUNDQUIST SAYS WE AREN'T GOING TO DIRECT ALL SEARCHES TO BE GENDERSPECIFIC HER ATTITUDE ISN'T SURPRISING WHEN COMPANIES LIMIT EXECUTIVE RECRUITING TO WOMEN THEY EXPOSE THEMSELVES TO ATTACKS FROM OVERLOOKED MEN SO FAR FEW MEN HAVE CHALLENGED GENDERSPECIFIC SEARCHES BUT A QUALIFIED MALE ASPIRANT EXCLUDED BECAUSE OF HIS SEX MAY FEEL HE HAS GOTTEN THE SHORT END OF THE STICK SAYS JOSEPH D LUKSCH A PARTNER WITH EPSTEIN BECKER & GREEN A MANAGEMENT LAW FIRM IN NEW YORK A HARDGOODS MANUFACTURER WITH 150 MILLION IN ANNUAL SALES RECENTLY LOWERED THE EXPERIENCE REQUIREMENT FOR THE HEAD OF ITS RETAIL DIVISION RATHER THAN CONSIDER MEN RECALLS SUSAN LANDON A PRINCIPAL AT RECRUITERS LAMALIE AMROP INTERNATIONAL IN NEW YORK THEY DIDN'T WANT TO HEAR ABOUT MALE CANDIDATES SHE SAYS THEY WERE MORE WILLING TO CHANGE THE SPECIFICATIONS AS IT TURNED OUT THE WOMAN WHO WAS HIRED MET THE ORIGINAL REQUIREMENT WHETHER A BUSINESS CONSIDERS BOTH SEXES OR JUST WOMEN THOUGH A FEMALETARGETED SEARCH DOESN'T ALWAYS SUCCEED THREE YEARS AGO XEROX CORP'S CHAIRMAN PAUL ALLAIRE SOUGHT A WOMAN TO BE THE COMPANY'S HUMANRESOURCES VICE PRESIDENT AN INFORMED INDIVIDUAL RECALLS BUT THE COMPANY REJECTED THREE EXTERNAL FEMALE CANDIDATES BECAUSE THEY LACKED EXPERIENCE IN HANDLING LARGESCALE ORGANIZATIONAL CHANGE WILLIAM F BUEHLER AN AMERICAN TELEPHONE & TELEGRAPH CO EXECUTIVE WAS HIRED INSTEAD FINALLY IN 1992 MR ALLAIRE PROMOTED MR BUEHLER AND REPLACED HIM WITH ANNE MULCAHEY PREVIOUSLY DIRECTOR OF HUMAN RESOURCES SOME BIG BUSINESSES SIMPLY REFUSE TO GIVE UP IN THEIR QUESTS FOR OUTSIDE FEMALE EXECUTIVES BURGER KING WENT 18 MONTHS WITHOUT A HUMANRESOURCES CHIEF BECAUSE ITS SEARCH FOR A WOMAN WITH GLOBAL EXPERIENCE TOOK LONGER THAN EXPECTED WE ALL GRUMBLED A LOT ABOUT THE PINCH HITTING REQUIRED REMEMBERS CORI ZYWOTOW BURGER KING'S VICE PRESIDENT OF COMMUNICATIONS BUT WE WANTED IT TO BE RIGHT NOT FAST 9402070090 940207 LEISURE & ARTS TELEVISION SEX ISN'T WHAT IT USED TO BE BY DOROTHY RABINOWITZ TALKING SEX MAKING LOVE IN THE '90S WILL SOON BE COMING TO YOUR SCREEN AND WHEN IT DOES IT WILL BE CLEAR THAT SEX IN THE '90S IS EVEN MORE COMPLICATED THAN MOST OF US SUPPOSED LET IT BE SAID AT ONCE THAT THE HBO SPECIAL AIRING THURSDAY 11 PMMIDNIGHT EST HAS ITS BRISK AND USEFUL SIDE AS IS EVIDENT IN ITS OUTPOURING OF LORE ON THE INCREASINGLY RICH VARIETY OF SEXUALLY TRANSMITTED DISEASES NOW AVAILABLE TO US THEN THERE ARE THE CONDOM LESSONS DISPENSED BY ROB JIGGETTS JR A PUBLICHEALTH EDUCATOR WITH A FLAIR FOR COMEDY THAT SAID THE FIRST THING THAT MUST STRIKE ANYONE WATCHING THIS IS THAT FEAR OF AIDS HAS IMPELLED AT LEAST SOME OF THE YOUNG AND RESTLESS AND MANY OF RIPER YEARS TOO TO FIND A WAY OF SIDESTEPPING THE SEX ACT AS IT IS TRADITIONALLY UNDERSTOOD THE TECHNIQUE ALLOWS FOR ALL THE USUAL ACTIVITIES ALONG WITH OTHERS LESS USUAL SHORT OF FULL COUPLING IF WE ARE TO BELIEVE WHAT WE HEAR AND SEE IN THIS PROGRAM AND ELSEWHERE A WHOLE NEW SEXUAL CULTURE HAS BEEN BORN ONE WHOSE CORNERSTONE IS THE NEWLY POPULAR ACTIVITY CALLED WITH THE LYRIC GRACE SO COMMON TO OUR AGE OUTERCOURSE AS ALWAYS THE ARRIVAL OF A CULTURAL REVOLUTION BRINGS WITH IT ADVANCE MEN AND OTHER APOSTLES OF THE NEW TRUE WAY SO IT IS WITH OUTERCOURSE WHICH WE SHOULD NOT BE SURPRISED TO HEAR ON THIS SHOW IS SUPERIOR TO OUTERCOURSE'S NOW SUPERANNUATED OPPOSITE TO LISTEN TO SOME OF THE INTERVIEWEES HERE MOST OF THEM YOUNG TALK ABOUT SEX THE OLD WAY IS INDEED TO WONDER WHY THEY EVER PUT UP WITH ANYTHING SO BORING THERE IS OF COURSE MUCH TO BE SAID IN THE AGE OF AIDS FOR MAKING A VIRTUE OF NECESSITY AND IT IS TRUE AS ONE BOOMER BOMBSHELL AND DEVOTEE OF OUTERCOURSE POINTS OUT IT PUTS LESS PRESSURE ON MEN AND THAT'S NOT ALL ONE OF THE SHOW'S GUESTS HAS DISCOVERED LOOKING AND WATCHING AND HOW MUCH MORE EXCITING IT IS THAN ANYTHING MORE DIRECTLY CARNAL ANOTHER BEAUTY EAGERLY EXPLAINS THAT THERE IS A CERTAIN SPOT RIGHT BEHIND HER EAR THAT IS THE SOURCE OF ALL SHE NEEDS MANY OTHERS OFFER SIMILAR TESTIMONIALS IN FAVOR OF NONCOITIONAL ADVENTURE ONE MAN QUITE LIKELY HAPPY TO LEARN HOW LITTLE IT TAKES TO MAKE THE EARTH MOVE FOR SOME OF THESE WOMEN TAKES THE LOFTIER VIEW THAT OUTERCOURSE MAKES SEX A LEARNING EXPERIENCE SOME OF US WOULD LIKE TO THINK OF COURSE THAT THERE ARE STILL A FEW HUMAN ACTIVITIES LEFT IN THE WORLD THAT DON'T REQUIRE SANCTIFICATION AS A LEARNING EXPERIENCE AND THAT SEX IS ONE OF THEM BUT TRY TELLING THAT TO THE SEX EXPERTS WHO MAKE THEIR LIVING EXPOUNDING ON THIS SUBJECT ON HAND ALONG WITH OTHER EXPERTS IS DR LONNIE BARBACH PHD AND SEX THERAPIST WHO AFFIRMS THAT OUTERCOURSE ETC IS MORE CREATIVE ANOTHER GUEST RELATES THAT THE CLIMAXES THAT ENSUE ARE EVEN MORE POWERFUL AND WHY IT IS WE LEARN BECAUSE WE CAN BRING ALL SORTS OF ENERGIES TO THIS INTERACTION TRY RECITING THIS SENTENCE WHILE GATHERING ENERGIES FOR YOUR OWN INTERACTION NEXT WE VISIT WITH CAROL AND ROBERT WHO READ PORNOGRAPHY TO ONE ANOTHER FOR EXCITEMENT BUT MORE IMPORTANT THEY HAVE RECENTLY MADE A DISCOVERY THAT FOR ONE REASON OR ANOTHER COMES AS BIG NEWS TO THE GENERATION THAT CAME OF AGE IN THE '60S AND AFTER NAMELY THAT THE POSTPONEMENT OF PLEASURE HAS ITS ADVANTAGES SEXUALLY AS IN MANY OTHER WAYS ONE WOMAN GOES ON A GOOD WHILE ABOUT HOW SHE PUT OFF SEX WITH A NEW LOVE INSTEAD OF JUMPING RIGHT IN AS USUAL AND FOUND MIRACULOUS LEVELS OF EXCITEMENT THAT WORD ABOUT THIS MIRACLE HAS REACHED THE DOIT GENERATION IS NATURALLY NICE TO HEAR STILL THERE IS SOMETHING EERIE ABOUT THE OUTERCOURSISTS WHO APPEAR ON CAMERA HERE OR IF THEY AREN'T EERIE THEY ARE AT THE VERY LEAST EXHAUSTING ONE BUSINESSLIKE LADY FOR INSTANCE INSTRUCTS US IN THE USE OF THE VEGETABLE SCRUBBER AS A SEX TOOL THIS IS TO BE USED ON THE SKIN PRESUMABLY THAT OF ONE'S PARTNER AND/OR SELF THE SCRUBBER CAN BE FOLLOWED OR PRECEDED BY A FEATHER IN THIS WAY SO WE ARE ASSURED WE CAN BRING DIFFERENT TEXTURES INTO PLAY WHICH HEIGHTEN STIMULATION AS THOUGH WE WERE NOT ALREADY BUSY ENOUGH BRINGING DIFFERENT ENERGIES TO OUR INTERACTION WE ARE NEXT INFORMED THAT IT WOULD BE GOOD TO HAVE A BLINDFOLD ON HAND WHY WE CAN ONLY GUESS THOUGH ONE WOULD BE QUITE USEFUL AS A MEANS OF KEEPING A PARTNER IN THE DARK ABOUT THE FACT THAT HE/SHE IS BEING ROMANCED BY A VEGETABLE SCRUBBER IN THIS RICH WORLD OF OUTERCOURSE IT IS CLEARLY NECESSARY TO BRING A LOT MORE EQUIPMENT INTO THE BEDROOM THAN USED TO BE REQUIRED THAT IS IF ANYBODY IS STILL DOING THINGS IN BEDROOMS AND THERE IS SO MUCH TO DO SUZI AND GUY FOR INSTANCE ARE VERY BUSY IN THE GYM FROM THE LOOK OF THINGS GUY'S WEAKNESS SUZI JOYFULLY CONFIDES IS THAT HE NEEDS TO VISUALIZE HE LOVES TO SEE EVERYTHING IT IS NOT NECESSARY HERE TO GO INTO THE MANY EXPLICIT AND CREATIVE WAYS IN WHICH SUZI HELPS GUY VISUALIZE IN ORDER TO APPRECIATE HOW MUCH HARD WORK ALL THIS IS THIS CONCUPISCENT TOIL SUZI EXPLAINS IS WHAT WE BUILT THE WHOLE MARRIAGE ON THERE IS A SHARP POINT LURKING AMONG ALL THE MILDLY PRURIENT VIGNETTES AND NEW AGE BLATHER THE FEAR OF AIDS AND OTHER INFECTION IS HAVING ITS EFFECT AND AN INTERESTING POINT IT IS HOWEVER LOST IT GETS IN THE PARADE OF WITNESSES HERE ONE OF THEM A YOUNG WOMAN AND DEVOUT PRACTITIONER OF OUTERCOURSE TELLS HOW SHE FINDS SEX EASIER AND MORE FUN NOW THIS NOTE SOUNDED OFTEN IN THIS PROGRAM CAN ONLY CONFIRM A LOT OF ALREADY STRONG SUSPICIONS THAT SOMETHING HAPPENED TO THE EXPERIENCE OF SEX AS A RESULT OF THE SEXUAL REVOLUTION THAT BEGAN SOME 30 YEARS AGO AND THAT THE SOMETHING WAS NOT GOOD THIS THIRTYISH WOMAN INDICATES THAT SHE HAS MOREOVER ONLY JUST RECENTLY DISCOVERED THE EROTIC PLEASURE OF THE LONG KISS BETTER LATE THAN NEVER DEAR AND DON'T FORGET THE VEGETABLE SCRUBBER 9402070089 940207 FOREIGN EXCHANGE MOVE BY FED PUTS DOLLAR IN LIMELIGHT PROMPTS ROUND OF SPECULATIVE BUYING BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE FIRST INTERESTRATE RISE ENGINEERED BY THE FEDERAL RESERVE IN ALMOST FIVE YEARS ISN'T BY ITSELF ENOUGH TO PUSH AN ALREADY STRONG DOLLAR MUCH HIGHER THIS WEEK CURRENCY ANALYSTS BELIEVE BUT IT HAS PUT THE DOLLAR SQUARELY IN THE LIMELIGHT AND PROMPTED SPECULATIVE BUYING IN THE US CURRENCY THEY SAID SOME OF THE MOST AGGRESSIVE CURRENCY TRADING ACCOUNTS ALREADY HAVE RUSHED BACK IN TO BUY THE DOLLAR TRADERS SAID WHAT REMAINS TO BE SEEN IS WHETHER LONGTERM MARKET PLAYERS SUCH AS FIXEDINCOME FUND MANAGERS WILL FOLLOW FUELING A SUSTAINED RALLY THE ONLY WAY THE DOLLAR IS GOING TO GO SUBSTANTIALLY HIGHER FROM HERE IS IF PEOPLE BECOME CONVINCED THE FED ISN'T DOING JUST A PREEMPTIVE STRIKE AGAINST INFLATION BUT IS PREPARED TO AGGRESSIVELY RAISE RATES IN THE NEAR TERM SAID MICHAEL FAUST VICE PRESIDENT AND FOREIGNEXCHANGE MANAGER AT BAILARD BIEHL & KAISER IN SAN FRANCISCO CONVINCE THE FIELD AND THE DOLLAR HAS A GOOD CHANCE AT MAKING A RUN AT THE 18000MARK LEVEL MR FAUST AND OTHER TRADERS SAID WHILE MANY CURRENCY ACCOUNTS WERE WILLING TO BET AT THAT LEVEL WHICH HASN'T BEEN SEEN SINCE SUMMER OF 1991 MOST WEREN'T LOOKING FOR IT UNTIL LATE IN 1994 ON FRIDAY THE CENTRAL BANK SIGNALED THAT IT WAS RAISING ITS TARGET FOR THE FEDERAL FUNDS RATE THE RATE BANKS CHARGE ONE ANOTHER ON OVERNIGHT LOANS TO WHAT TRADERS BELIEVE IS NOW 325 FROM THE PREVIOUS 3 OR AS A FED RELEASE PUT IT THE POLICYMAKING FEDERAL OPEN MARKET COMMITTEE VOTED UNANIMOUSLY TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS IN THE PAST THE FED HASN'T FORMALLY ANNOUNCED ITS INTENTION TO PUSH THE FEDERAL FUNDS RATE TO A DIFFERENT LEVEL THE US CURRENCY WAS TRADING AT 17585 MARKS LATE FRIDAY COMPARED WITH 17415 LATE IN NEW YORK THURSDAY THE DOLLAR ALSO TRADED AT 10930 YEN COMPARED WITH 10814 LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10888 YEN AND AT 17620 MARKS ON FRIDAY THE DOLLAR BRIEFLY TOUCHED 17640 MARKS A 29MONTH HIGH BUT EVEN THE STAUNCHEST DOLLAR BULLS WON'T BE WILLING TO TAKE THE CURRENCY MUCH HIGHER UNLESS THERE ARE SIGNS THAT THE FED WILL NUDGE RATES UPWARD AGAIN I DON'T THINK THERE'S MUCH MORE UPSIDE FOR THE DOLLAR BASED ON CURRENT NEWS SAID MIKE MALPEDE SENIOR CURRENCY ANALYST AT REFCO INC CHICAGO FACTORING IN INTERESTRATE DIFFERENTIALS HE ADDED WE'VE PRICED IT THERE'S A LONG LINE OF PROMINENT WALL STREETERS WHO DO BELIEVE THAT MORE FED MOVES ARE FORTHCOMING HOWEVER JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INC SAID CERTAINLY ON THE SIDE OF THE FED THIS IS THE FIRST INSTALLMENT OF WHAT IS GOING TO BE A LONG PROCESS ATTEMPTING OVER TIME TO DECELERATE US GROWTH IN ORDER TO MAINTAIN PRICE STABILITY BUT OTHERS SAID THAT IN LIGHT OF SOME CONTINUING DOUBTS ABOUT THE STRENGTH OF THE RECOVERY MORE RATE INCREASES MIGHT SPUR A POLITICAL MELEE DISTASTEFUL ALAN GREENSPAN THE FED'S CHAIRMAN AS SOMEONE SAID TO ME I DON'T THINK GREENSPAN WANTS TO SPEND THE REST OF THE YEAR IN FRONT OF A CONGRESSIONAL COMMITTEE EXPLAINING RATE HIKES IF THERE'S STILL A WEAK LABOR FRONT' SAID STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGN EXCHANGE AT MERRILL LYNCH INTERNATIONAL BANK BAILARD BIEHL'S MR FAUST AGREED AND ADDED THAT SUCH FALLOUT WOULD ALSO BE QUITE APPARENT AT THE ADMINISTRATION LEVEL THERE IS A RISK THAT YOU SEE MORE OF A RIFT BETWEEN THE TREASURY AND THE FED HE SAID HE CHARACTERIZED THE FED NOW AS PROACTIVE RATHER THAN REACTIVE WITH REGARD TO FIGHTING INFLATION 9402070088 940207 THIRD BUSINESS GROUP MANUFACTURERS IS OPPOSED TO CLINTON HEALTHCARE PLAN BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NAPLES FLA THE NATIONAL ASSOCIATION OF MANUFACTURERS JUMPED ON THE BUSINESS BANDWAGON REJECTING THE CLINTON HEALTHCARE REFORM PLAN SAYING IT CAN'T SUPPORT THE PLAN IN ITS PRESENT FORM THE STATEMENT WHICH FOLLOWED A DEBATE AMONG BOARD MEMBERS OF THE 12000MEMBER TRADE GROUP CAPPED A WEEK IN WHICH TWO OTHER BUSINESS GROUPS ANNOUNCED THEIR OPPOSITION TO THE CLINTON PLAN UNTIL SATURDAY'S 5620 VOTE BY THE NAM'S BOARD THE ASSOCIATION HAD FOLLOWED A STRATEGY OF PUBLIC NEUTRALITY SO THAT IT COULD HAVE MORE LEVERAGE IN BARGAINING OVER HEALTHCARE REFORM WE'LL SIMPLY HAVE TO TAKE OUR LUMPS WITH THE CLINTON ADMINISTRATION SAID NAM PRESIDENT JERRY JASINOWSKI ACKNOWLEDGING THAT THE ADMINISTRATION WON'T BE HAPPY WITH THE OUTCOME OF THE NAM'S MEETING AT A RESORT HERE BUT HE SAID THE GROUP STILL WANTS TO BE INVOLVED IN SHAPING REFORM LEGISLATION AND THAT THE INTENT WAS TO SEND A CLEAR SIGNAL THAT WE NEED MAJOR CHANGES IN THE CLINTON PLAN AMONG OTHER THINGS THE NAM DOESN'T LIKE WHAT IT SEES AS HEAVY RELIANCE ON GOVERNMENT AND PRICE CONTROLS TO SOLVE THE HEALTHCARE PROBLEMS THE CLINTON BILL HAS A LOT OF STUFF THAT WE FIND TROUBLESOME SAID CHICAGO INDUSTRIALIST ROBERT PRITZKER WHO IS THIS YEAR'S NAM CHAIRMAN THE MOVE WAS JUST WHAT THE WHITE HOUSE WANTED TO PREVENT SNOWBALLING OPPOSITION TO THE LEGISLATION AT LEAST BY BUSINESS GROUPS THE ADMINISTRATION'S PLAN WAS REJECTED BY BOTH THE BUSINESS ROUNDTABLE AND US CHAMBER OF COMMERCE WITH THE ROUNDTABLE SUPPORTING A RIVAL PLAN BY REP JIM COOPER D TENN THE FORCE OF NAM MEMBERS' HOSTILITY TO THE CLINTON PLAN APPEARED TO SURPRISE SOME OF THE ASSOCIATION'S OFFICIALS WHO HAD SAID THE GROUP WOULD NEITHER REJECT NOR ENDORSE ANY OF THE COMPETING HEALTHREFORM BILLS IN ADDITION REP COOPER HELPED HIS OWN CAUSE FRIDAY WITH A SPEECH THAT WAS WELL RECEIVED BY THE BOARD WHICH IS COMPOSED OF TOP EXECUTIVES OF MANUFACTURERS OF ALL SIZES THE COOPER BILL WOULD PROVIDE TAX INCENTIVES TO HELP PEOPLE BUY HEALTH INSURANCE AND WOULD RELY ON MARKET FORCES TO HOLD DOWN PRICES BUT THE NAM DIDN'T GO SO FAR AS TO ENDORSE THE COOPER PLAN ALTHOUGH HILLARY RODHAM CLINTON HAD BEEN INVITED TO ADDRESS THE GROUP SATURDAY PRESIDENTIAL ASSISTANT ROBERT RUBIN WAS SCHEDULED TO GO IN HER PLACE AS MOMENTUM SWUNG IN FAVOR OF A STAND AGAINST THE CLINTON PLAN NAM MEMBERS AND EXECUTIVES FEARED AN APPEARANCE BY THE ADMINISTRATION WOULD EMBARRASS BOTH THE TRADE GROUP AND THE WHITE HOUSE I DID NOT URGE HIM TO BREAK HIS BACK TO GET DOWN HERE SAID MR JASINOWSKI WHO INFORMED THE WHITE HOUSE FRIDAY NIGHT OF THE LIKELY VOTE THE WHITE HOUSE CANCELED THE APPEARANCE MANY NAM MEMBERS FELT IT WAS TIME TO STATE WHAT THEY WERE ALREADY SAYING IN PRIVATE MOST OF ITS MEMBERS DON'T LIKE THE CLINTON PLAN WE'VE GOT TO SAY THIS IS TRASH WARREN BATTS CHAIRMAN OF PREMARK INTERNATIONAL INC ARGUED FRIDAY LET'S START OVER AGAIN HE MADE THE REMARKS AT A MEETING OF THE NAM'S ECONOMIC AND REGULATORY POLICY COMMITTEE WHICH UNANIMOUSLY URGED THE BOARD'S EXECUTIVE COMMITTEE TO EXPRESS FULL OPPOSITION TO THE CLINTON PLAN OTHERS CONTENDED THAT REJECTING THE PLAN EVEN WITH A SUBSEQUENTLY TONEDDOWN STATEMENT WOULD HURT THEIR EFFORTS TO INFLUENCE THE FINAL LEGISLATION I JUST DON'T THINK IT'S GOOD TACTICS AT THIS POINT CATERPILLAR INC CHAIRMAN DONALD FITES TOLD FELLOW BOARD MEMBERS DURING SATURDAY'S DEBATE GENERAL MOTORS CORP AND TRUCK MAKER NAVISTAR INTERNATIONAL CORP WERE AMONG THOSE FAVORING CONTINUED NEUTRALITY IN ADDITION TO PREMARK A MAKER OF CONSUMER PRODUCTS AND RESTAURANT SUPPLIES LARGER EMPLOYERS WHO FAVORED REJECTING THE CLINTON PLAN INCLUDED INTERNATIONAL PAPER CO AND GENERAL MILLS INC BOARD MEMBERS SAID THEY DIDN'T WANT THEIR REJECTION OF THE CLINTON PLAN TO BE PERCEIVED AS HARSHLY AS THAT OF THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVE OFFICERS OF LARGE COMPANIES IN BOTH SERVICE AND MANUFACTURING INDUSTRIES SOME MEMBERS AND NAM OFFICIALS TRIED TO SOFTEN THE BLOW BY NOTING THAT THEY STILL WEREN'T ENDORSING ANY SINGLE PLAN SOME EVEN ARGUED THEY WEREN'T OPPOSING THE CLINTON PLAN BUT SIMPLY NOT SUPPORTING IT MANUFACTURERS REMAIN DIVIDED ON MANY ASPECTS OF HEALTHCARE REFORM LARGER HEAVILY UNIONIZED COMPANIES LIKE THE ADMINISTRATION'S IDEA OF FORCING ALL EMPLOYERS TO CONTRIBUTE TO A HEALTH BENEFITS PACKAGE BUT EVEN THOUGH 97 OF THE NAM'S MEMBER COMPANIES PROVIDE AT LEAST SOME HEALTH INSURANCE MANY SMALLER MANUFACTURERS OPPOSE SUCH MANDATES THE RESOLUTION REJECTING THE CLINTON PLAN REITERATED THE NAM'S SUPPORT FOR AFFORDABLE BENEFITS SOUND FINANCING ADEQUATE EMPLOYER FLEXIBILITY ENCOURAGEMENT OF INNOVATION REASONABLE LIMITS ON GOVERNMENT INTRUSIVENESS EFFECTIVE COST CONTROLS AND AN END TO COSTSHIFTING TO BUSINESS BUT IT SAID THE ADMINISTRATION'S PLAN IS DEFICIENT IN NUMEROUS SIGNIFICANT AREAS AND THE NAM IS UNABLE TO SUPPORT IN ITS PRESENT FORM THE ADMINISTRATION'S HEALTHCARE REFORM PLAN NOTING THAT HE HAD ALREADY SENT MR CLINTON A LETTER OBJECTING TO PARTS OF THE PLAN MR JASINOWSKI SAID THE NAM'S ACTION ESSENTIALLY MADE PUBLIC WHAT IT WAS ALREADY TELLING THE ADMINISTRATION IN PRIVATE 9402070087 940207 INDUSTRY FOCUS MANY WANT TO FLY TO VIETNAM BUT ONLY SOME MAY LAND US AIRLINES JOCKEY FOR RIGHTS TO SERVE MARKET AFTER END OF EMBARGO BY SUSAN CAREY AND LAURENCE ZUCKERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NOW THAT THE US EMBARGO AGAINST VIETNAM HAS BEEN LIFTED THE LARGEST US AIRLINES ARE EAGER TO START SERVING THE SOUTHEAST ASIAN COUNTRY BUT NOT ALL OF THEM MAY BE ALLOWED IN BY HANOI OR BY WASHINGTON SO THE INTENSE LOBBYING THAT PRECEDED THE EMBARGO'S END IS TURNING INTO A HOTLY COMPETITIVE HORSE RACE US AIRLINES ARE EAGER TO ADD A NEW COUNTRY TO THEIR ASIAN ROUTE MAPS ESPECIALLY ONE WHERE THEY WOULDN'T HAVE TO SHELL OUT MILLIONS OF DOLLARS TO PAY FOR ROUTE RIGHTS THEY EXPECT A FLOOD OF BUSINESS TRAVELERS INTENT ON DOING DEALS IN THE COUNTRY OF 72 MILLION AS WELL AS TRAFFIC FROM SOME OF THE ONE MILLION ETHNIC VIETNAMESE WHO LIVE IN THE US VIETNAM IS ONE OF THE MOST PROMISING COUNTRIES IN ASIA SAYS A CONTINENTAL AIRLINES EXECUTIVE IN THE PAST FEW DAYS CARRIERS HAVE PEPPERED WASHINGTON WITH ROUTE APPLICATIONS AND DISPATCHED SQUADS OF EXECUTIVES TO HANOI AND HO CHI MINH CITY TO FURTHER THEIR CAUSE WITH AIRLINE AND GOVERNMENT OFFICIALS THERE THIS IS THE 20TH CENTURY VERSION OF THE OKLAHOMA LAND RUSH DECLARES AN OFFICIAL OF ANOTHER US AIRLINE JOCKEYING TO ENTER THE MARKET WITHIN TWO HOURS OF PRESIDENT CLINTON'S LIFTING OF THE EMBARGO THURSDAY UAL CORP'S UNITED AIRLINES ANNOUNCED THAT IT INTENDS TO FLY TO HO CHI MINH CITY FROM LOS ANGELES PROBABLY VIA TAIPEI THE NEXT DAY NORTHWEST AIRLINES SAID IT APPLIED TO THE US TRANSPORTATION DEPARTMENT FOR A LICENSE TO FLY TO HO CHI MINH CITY FROM DETROIT VIA TOKYO CONTINENTAL CONFIRMED THAT ITS CONTINENTAL MICRONESIA UNIT APPLIED LAST YEAR FOR ROUTE RIGHTS TO VIETNAM AND HAS HAD EXTENSIVE DISCUSSIONS WITH VIETNAM AIRLINES ON TRAINING AIRCRAFT LEASING SUPPORT ACTIVITIES AND JOINT FLIGHTS FROM GUAM AND HONOLULU DELTA AIR LINES SAID IT HASN'T YET FILED FOR ROUTE AUTHORITY BUT CALLED VIETNAM A MARKET THAT HAS APPEAL THE CARRIER PROBABLY WOULD SERVE VIETNAM AS AN EXTENSION OF ITS FLIGHTS TO TAIPEI FROM LOS ANGELES A SPOKESMAN SAID AMERICAN AIRLINES' PARENT AMR CORP SAID IT CONTINUES TO BE INTERESTED IN SELLING AIRPORT MANAGEMENT AND OTHER AVIATION SERVICES TO THE VIETNAMESE AMERICAN WHICH HAS DROPPED ALL OF ITS ASIAN DESTINATIONS EXCEPT FOR JAPAN PROBABLY WOULDN'T WANT TO FLY TO VIETNAM CARGO CARRIER FEDERAL EXPRESS CORP ALSO HAS INDICATED A DESIRE TO FLY TO VIETNAM ACCORDING TO THE US TRANSPORTATION DEPARTMENT US AIRLINES HAVE SPENT THE PAST TWO YEARS WOOING VIETNAMESE GOVERNMENT AND AIRLINE OFFICIALS IN ORDER TO GET A LEG UP ONCE THE EMBARGO ENDED BUT IT MAY NOT BE IN VIETNAM'S BEST INTERESTS TO LET ALL THE US CARRIERS IN THE VIETNAM MARKET IS SO SMALL IT MIGHT BE SPOILED BY TOO MANY AIRLINES SAYS NGUYEN NGOC QUANG DIRECTOR OF CORPORATE AFFAIRS AT STATEOWNED VIETNAM AIRLINES MOREOVER THERE IS NO AGREEMENT BETWEEN THE TWO COUNTRIES ON AIR SERVICES ADDS MR QUANG I CAN'T IMAGINE THE VIETNAMESE OPENING THEIR SKIES SAYS ONE US AIRLINE'S REPRESENTATIVE IN SOUTHEAST ASIA WITH ONLY ONE NATIONAL CARRIER THEY WOULD BE OVERWHELMED MOREOVER THEY CAN EXACT WHATEVER THEY WANT FROM THE US CARRIERS THAT WANT TO GET IN THERE HE SAYS COMPLICATING THIS IS VIETNAM AIRLINES' OWN PROBLEMS THE CARRIER WANTS TO OFFER A CREDIBLE SERVICE TO THE US BUT IT LACKS THE NECESSARY AIRCRAFT FOR SUCH LONG FLIGHTS MR QUANG SAYS THE SMALL AIRLINE WHICH CARRIED 800000 PASSENGERS IN 1992 HAS ONLY TWO TYPES OF MODERN LONGDISTANCE PLANES LEASED BOEING CO 767S THAT IT FLIES TO AUSTRALIA RUSSIA SOUTH KOREA AND SOME REGIONAL DESTINATIONS AND FIVE AIRBUS INDUSTRIE A320S IT RECENTLY LEASED FOR SHORTER HOPS THE BULK OF ITS FLEET CONSISTS OF ELDERLY RUSSIANBUILT JETS AND TURBOPROPS THEY ALMOST CERTAINLY WON'T OPERATE ON ROUTES TO THE US THEMSELVES SAYS STEPHEN MILLER WHOSE HONG KONGBASED TRINITY AVIATION LTD LEASES THE BOEINGS TO VIETNAM AIRLINES THEY'LL PROBABLY OPT TO OPERATE WITH A US CARRIER IN A JOINT VENTURE THEY'LL GO WITH WHOEVER WILL GIVE THEM THE BEST DEAL WITHOUT RECIPROCAL SERVICE TO THE US BY VIETNAM AIRLINES OR THE NATION'S SMALL TROUBLED PACIFIC AIRLINES IT'S DOUBTFUL THAT HANOI WOULD OPEN ITS SKIES TO A SLEW OF US AIRLINES THE VIETNAMESE KNOW IN A WAR OF ATTRITION ON THE PACIFIC THEY COULD NEVER WIN SAYS MR MILLER WASHINGTON HAS NOT RECEIVED NOTICE THAT THE VIETNAMESE WANT TO FLY HERE SAYS ONE ADMINISTRATION OFFICIAL IF THEY DON'T WANT TO COME HERE THEY'D CLEARLY CALL THE SHOTS AND IF THE VIETNAMESE AREN'T WILLING TO ADMIT ALL US OPERATORS THIS ADMINISTRATION MIGHT HAVE TO MAKE SOME CHOICES ON WHICH US CARRIERS WILL GO IN HE SAYS UNITED BELIEVES IT HAS THE BEST CASE IT INHERITED OPERATING AUTHORITY TO VIETNAM FROM SEVERAL ASIAN CITIES WHEN IT BOUGHT PAN AM CORP'S PACIFIC ROUTES IN 1986 WHILE THE US TRANSPORTATION DEPARTMENT HASN'T YET RENEWED UNITED'S LICENSE TO FLY TO VIETNAM THE CARRIER LAST WEEK URGED THE DEPARTMENT TO NOTIFY HANOI THAT UNITED HAS THE ROUTE AUTHORITY A UNITED SPOKESMAN NOTES THAT THE AIRLINE WILL NEED PERMISSION FROM VIETNAM AS WELL BOTH TO FLY THERE AND ALSO FOR RIGHTS TO PICK UP PASSENGERS AT AN INTERMEDIATE POINT SUCH AS TAIPEI HE CONFIRMED THAT STEPHEN WOLF UAL'S CHAIRMAN AND CHIEF EXECUTIVE IS SCHEDULED TO VISIT HANOI FEB 16 HIS SECOND VISIT IN A YEAR WE'VE HAD QUITE A CLOSE RELATIONSHIP WITH UNITED OVER THE PAST SIX MONTHS SAYS PHAM PHU KHOI VIETNAM AIRLINES' HONG KONGBASED MANAGER FOR NORTHEAST ASIA WHEN PRESSED HE ADDS THAT THE TWO AIRLINES HAVE HAD LOTS OF TALKS BUT NOT MADE ANY DEALS NORTHWEST UNITED'S BIGGEST RIVAL IN THE PACIFIC ALSO BELIEVES IT HAS A GOOD CHANCE NORTHWEST SINCE 1991 HAS FLOWN CHARTER FLIGHTS BETWEEN HO CHI MINH CITY AND BANGKOK CARRYING VIETNAMESE REFUGEES RESETTLING IN THE US BUT THE OTHERS HAVE BEEN ACTIVE AS WELL MR QUANG SAYS HE VISITED HOUSTON LOS ANGELES AND SAN FRANCISCO LATE LAST YEAR COURTESY OF CONTINENTAL HE AND CONTINENTAL REPRESENTATIVES DISCUSSED MANY INITIATIVES INCLUDING HAVING VIETNAM AIRLINES PICK UP CONTINENTAL PASSENGERS IN MANILA FOR ONWARD FLIGHTS HE SAYS CONTINENTAL WHICH FLEW CHARTER FLIGHTS IN VIETNAM DURING THE VIETNAM WAR HAS A SIZABLE PRESENCE IN THE PACIFIC THROUGH ITS CONTINENTAL MICRONESIA UNIT CONTINENTAL EXPECTS THAT ALL US AIRLINES WILL HAVE AN EQUAL OPPORTUNITY TO COMPETE FOR WHATEVER TRAFFIC RIGHTS ARE AGREED UPON BY THE TWO GOVERNMENTS A SPOKESMAN SAYS DELTA'S CHAIRMAN RONALD ALLEN VISITED VIETNAM IN 1992 AND THE AIRLINE THAT YEAR HOSTED VIETNAM AIRLINES OFFICIALS ON A VISIT TO WALT DISNEY WORLD IN FLORIDA STILL IN THE ABSENCE OF DIPLOMATIC RELATIONS BETWEEN THE US AND VIETNAM IT'S NOT CLEAR WHEN THE TWO COUNTRIES WILL SIT DOWN AND NEGOTIATE AN AVIATION AGREEMENT A US REGULATION STILL IN EFFECT BARS USREGISTERED AIRCRAFT FROM FLYING IN COMMUNISTCONTROLLED VIETNAM THE US FEDERAL AVIATION ADMINISTRATION WILL HAVE TO CERTIFY THAT VIETNAM'S AIRPORTS AIRTRAFFIC CONTROL SYSTEM AND SECURITY MEASURES ARE ADEQUATE THE US TREASURY DEPARTMENT WHICH ENFORCED THE EMBARGO WILL HAVE TO MAKE NEW REGULATIONS GOVERNING RELATIONS WITHOUT THE TRADE BAN ONE CONTINENTAL EXECUTIVE PREDICTS IT WILL BE AT LEAST THREE TO SIX MONTHS BEFORE US PLANES LAND IN VIETNAM THIS SHOULD BE LOOKED AT AS AN ENTIRELY NEW BALL GAME SAYS A TRANSPORTATION DEPARTMENT OFFICIAL INDEED VIETNAM AIR'S MR QUANG LAST WEEK IN HANOI SAID THAT HIS COMPANY PLANS MEETINGS TODAY TO DECIDE WHAT TO DO 9402070086 940207 NEWS CORP PLANS TO SELL BOSTON HERALD TO PURCELL PAPER'S LONGTIME PUBLISHER BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON NEWS CORP SAID IT AGREED TO SELL THE BOSTON HERALD TO PATRICK J PURCELL THE LONGTIME PUBLISHER OF THE HERALD WHO ALSO SERVES AS PUBLISHER OF THE NEW YORK POST RUPERT MURDOCH NEWS CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CITED FEDERAL COMMUNICATIONS COMMISSION CROSSOWNERSHIP RULES FOR THE EXPECTED SALE NEWS CORP HAD SAID LAST FALL IT MIGHT SELL THE TABLOID WHICH HAS A DAILY CIRCULATION OF 321715 WHEN IT RETAINED ITS OPTION TO BUY WFXTTV CHANNEL 25 A FOX INC AFFILIATE HERE DREW MARCUS AN ANALYST WITH ALEX BROWN & SONS SAID THE MOVE CONTINUES A SHIFT FROM PRINT TO ELECTRONIC MEDIA BY NEWS CORP IT'S MUCH MORE IMPORTANT STRATEGICALLY FOR THE COMPANY TO OWN A BOSTON TELEVISION STATION THAN A NEWSPAPER HE SAID ESPECIALLY IN THE WAKE OF NEWS CORP'S FOX UNIT WINNING THE RIGHTS TO NATIONAL FOOTBALL LEAGUE BROADCASTS WITH THE NFL DEAL AND THE PROFITS IT WILL BRING TO THE LOCAL AFFILIATE STATIONS IT MAKES SENSE FOR THEM TO OWN AS MANY MAJORMARKET STATIONS AS POSSIBLE TERMS OF THE SALE WEREN'T DISCLOSED A HERALD EDITOR PUT THE PRICE AT ABOUT 15 MILLION PARTLY FINANCED BY NEWS CORP BUT THIS COULDN'T BE CONFIRMED MR PURCELL WHO ALSO HAD BACKING FROM BANK OF BOSTON CORP FOR THE PURCHASE ASSERTED THAT THE PAPER HAS BEEN RUNNING CLOSE TO BREAKEVEN FOR THE PAST FEW YEARS HE SAID THAT WHILE THE HERALD'S CIRCULATION HAS SLIPPED IN RECENT YEARS FROM A PEAK OF 365000 IN 1988 AS THE REGION'S ECONOMY REBOUNDS AS I THINK IT'S POISED TO DO CIRCULATION WILL GROW AGAIN HE SAID HE EXPECTS TO CUT COSTS AND HAS SOME IDEAS ON HOW TO BRING IN NEW ADVERTISING REVENUE THE HERALD COMPETES FOR READERS AND ADVERTISERS WITH THE LARGER BOSTON GLOBE NOW OWNED BY NEW YORK TIMES CO WHICH HAS A DAILY CIRCULATION OF 507647 AND DOMINATES LOCAL ADVERTISING WITH MORE THAN 80 OF THE MARKET BY SOME ESTIMATES THE TWO PAPERS ARE OFTENBITTER COMPETITORS WITH THE HERALD'S SCREAMING HEADLINES AND POLITICALLY CONSERVATIVE VIEWS CONTRASTING WITH THE GLOBE'S MORE COMPREHENSIVE REGIONAL AND NATIONAL COVERAGE AND LIBERAL EDITORIAL PAGE THE GLOBE'S SUNDAY EDITION TOWERS OVER THE SUNDAY HERALD WITH CIRCULATION OF 814036 COPIES COMPARED WITH 213985 FOR THE HERALD 9402070085 940207 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 1/2 HIGH 3 LOW 3 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 310 30 TO 59 DAYS 315 60 TO 89 DAYS 318 90 TO 119 DAYS 320 120 TO 149 DAYS 330 150 TO 179 DAYS 335 180 TO 249 DAYS 345 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 322 60 DAYS 325 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 257 TWO MONTHS 261 THREE MONTHS 275 SIX MONTHS 312 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 335 ONE MONTH 345 THREE MONTHS 360 SIX MONTHS BANKERS ACCEPTANCES 327 30 DAYS 333 60 DAYS 339 90 DAYS 342 120 DAYS 345 150 DAYS 350 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 7/16 THREE MONTHS 3 5/8 SIX MONTHS 3 15/16 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 585 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 JANUARY 31 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 299 13 WEEKS 316 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 706 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 706 60 DAYS 716 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9402070084 940207 FIRST COLONY CORP'S BUYBACK LYNCHBURG VA FIRST COLONY CORP SAID DIRECTORS AUTHORIZED REPURCHASE OF UP TO FIVE MILLION OF THE COMPANY'S COMMON SHARES THE INSURANCE HOLDING COMPANY HAS 493 MILLION SHARES OUTSTANDING 9402070083 940207 COMMON INTEREST THE PRESIDENT AND FED APPEAR TO BE IN STEP ON LATEST RATE RISE THOUGH MARKETS ARE ROCKED THE WHITE HOUSE PRAISES GREENSPAN'S STEADY HAND COULD INFLATION KILL ROMANCE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES FOR THE FIRST TIME IN FIVE YEARS THE STOCK MARKET PLUNGED THE BOND MARKET FLINCHED A DEMOCRATIC SENATOR LIKENED THE ACTION TO BOMBING AVERAGE AMERICANS AND THE WHITE HOUSE WELL THE WHITE HOUSE SHRUGGED OFF THE MOVE AS ANTICIPATED CLEARLY THE BILL CLINTONALAN GREENSPAN HONEYMOON ISN'T OVER YET AND IT SEEMS LIKELY TO CONTINUE AS LONG AS THE FED DOES WHAT GOVERNMENT OFFICIALS HERE NOW EXPECT KEEP SHORTTERM INTEREST RATES BELOW 4 FOR THE REST OF THE YEAR WHEN THE FED BROKE WITH TRADITION FRIDAY AND PUBLICLY ANNOUNCED THE RATE INCREASE TREASURY SECRETARY LLOYD BENTSEN AND CHIEF WHITE HOUSE ECONOMIST LAURA D'ANDREA TYSON WERE PREPARING TO BRIEF REPORTERS ON NEW UNEMPLOYMENT FIGURES MR BENTSEN HAD EATEN BREAKFAST WITH MR GREENSPAN BUT SAYS HE AVOIDED ASKING WHETHER THE LONGADVERTISED RATE INCREASE WAS COMING ALERTED BY THE FED MOMENTS BEFORE WIRESERVICE HEADLINES CARRIED THE NEWS MR BENTSEN FIRST HUDDLED WITH MS TYSON WHITE HOUSE ECONOMIC ADVISER ROBERT RUBIN AND PRESIDENTIAL IMAGE MEISTER DAVID GERGEN HE THEN TALKED BY PHONE WITH PRESIDENT CLINTON AROUND NOON THE TREASURY SECRETARY WENT TO THE WHITE HOUSE PRESS ROOM CHOOSING HIS WORDS MORE CAREFULLY THAN USUAL HE EMPHASIZED THAT INFLATION IS WELLCONTAINED BUT SAID THAT THE FED'S PREEMPTIVE STRIKE AGAINST INFLATION WOULDN'T INHIBIT GROWTH ON SATURDAY THE TREASURY SECRETARY AND THE FED CHAIRMAN PLAYED TENNIS ON SUNDAY MR BENTSEN SAID ON NBC'S MEET THE PRESS THAT THE BIGGEST CONTROVERSY THAT I HAVE WITH THE CHAIRMAN OF THE FEDERAL RESERVE WAS EXPRESSED ON THE TENNIS COURTS MR BENTSEN WON THE FIRST SET 62 MR GREENSPAN THE SECOND IN A TIEBREAKER MS TYSON PRACTICALLY THANKED THE FED THIS MOVE TODAY IS CONSISTENT WITH THE CONTINUATION OF A SOLID AND SUSTAINED ECONOMIC EXPANSION SHE SAID FRIDAY SHE REMINDED REPORTERS THAT THE NEW WHITE HOUSE ECONOMIC FORECAST ANTICIPATES THAT THE FED WILL RAISE RATES BY ONEHALF PERCENTAGE POINT THIS YEAR FRIDAY'S INCREASE GOES HALFWAY THOUGH MR BENTSEN SAID IN AN INTERVIEW THAT UNLESS INFLATION BECOMES MORE WORRISOME I DON'T SEE ANY REASON FOR ANOTHER QUARTERPOINT INCREASE BEHIND THIS UNUSUAL COZINESS IS AN ALLIANCE THAT HAS BECOME CRITICAL FOR BOTH THE FED CHIEF AND THE PRESIDENT THE FED HOLDS IN ITS HANDS THE FUTURE OF PRESIDENT CLINTON TO EXAGGERATE IT JUST A LITTLE REP LEE HAMILTON AN INDIANA DEMOCRAT AND FORMER CHAIRMAN OF THE JOINT ECONOMIC COMMITTEE SAID RECENTLY HE'S NOT GOING TO PICK A FIGHT HE'S GOT TOO MUCH AT STAKE MEANWHILE MR GREENSPAN NEEDS WHITE HOUSE SUPPORT IN FENDING OFF CONGRESSIONAL AND TREASURY PROPOSALS TO CURB THE FED'S INDEPENDENCE AND WEAKEN ITS REGULATORY CLOUT OVER BANKS MR CLINTON HAS AT LEAST ONE BIG ADVANTAGE OVER GEORGE BUSH IN DEALING WITH MR GREENSPAN WITH THE ECONOMY SLUMPING MR BUSH NEEDED THE FED TO CUT INTEREST RATES SWIFTLY ALL MR CLINTON NEEDS IS FOR MR GREENSPAN TO DO WHAT COMES NATURALLY MOVE VERY SLOWLY AND HE IS THE INCREASE IN THE FEDERAL FUNDS RATE WHICH BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS TO 325 IS PROBABLY THE FIRST INSTALLMENT BUT IN THE FED'S LAST ROUND OF RATE INCREASES BEGINNING IN 1988 IT INCREASED THEM BY MORE THAN THREE FULL PERCENTAGE POINTS WITHIN A YEAR UNLESS INFLATION SURGES OR THE ECONOMY TAKES AN UNFORESEEN DIP THE FED IS LIKELY TO KEEP THE FED FUNDS RATE AROUND 4 THROUGH 1994 PARTLY BECAUSE OF UNCERTAINTY ABOUT HOW FAR THE FED WILL GO THE DOW JONES INDUSTRIAL AVERAGE FELL 9624 POINTS OR 24 TO 387142 FRIDAY THE YIELD ON 10YEAR TREASURY SECURITIES THE BENCHMARK RATE FOR FIXEDRATE MORTGAGES ROSE BY NEARLY ONETENTH OF A PERCENTAGE POINT ECONOMISTS BELIEVE BANKS ARE SURE TO RAISE THE RATES THEY PAY ON SHORTTERM DEPOSITS BUT AREN'T LIKELY TO BOOST THEIR PRIME LENDING RATE WIDELY USED AS A BENCHMARK FOR HOMEEQUITY LOANS AND SOME BUSINESS LOANS SOME FED OFFICIALS THINK MR GREENSPAN IS MOVING TOO SLOWLY BY WAITING SO LONG TO INCREASE RATES HE HAS FUELED CRITICISM THAT HE IS BEHOLDEN TO MR CLINTON AND SOFT ON INFLATION WHILE PUSHING UP RATES TOO MODESTLY AT RECENT CLOSEDDOOR MEETINGS OF FED OFFICIALS FED VICE CHAIRMAN DAVID MULLINS AND WAYNE ANGELL A FED GOVERNOR HAVE ARGUED THAT WHEN THE FED FINALLY MOVED IT SHOULD RAISE RATES A FULL ONEHALF PERCENTAGE POINT SIGNALING A ONETIME ADJUSTMENT THAT WOULDN'T BE FOLLOWED BY A SERIES OF SMALL MOVES WHEN THE FED POLICY MAKERS ASSEMBLED THURSDAY AFTERNOON NEITHER MR MULLINS NOR MR ANGELL WAS THERE BOTH ARE LEAVING THE FED THE SESSION INTERRUPTED BY A FIRE ALARM WAS DOMINATED BY FED ECONOMISTS WHO SAID THAT THE US ECONOMY IS PICKING UP MOMENTUM DESPITE WEAK DEMAND FOR US EXPORTS AND TAX INCREASES AND DEFENSE CUTS AT HOME ALTHOUGH MR GREENSPAN GOT HIS CUSTOMARY ADVANCE PEEK AT THE LABOR DEPARTMENT'S EMPLOYMENT REPORT LATE THURSDAY THE REST OF THE WORLD DIDN'T LEARN UNTIL FRIDAY MORNING THAT EMPLOYERS ADDED A FEWERTHANPREDICTED 62000 WORKERS IN JANUARY SOME FED WATCHERS QUICKLY CONCLUDED THAT THE FED WOULD HAVE TO PICK A MORE PROPITIOUS DAY TO RAISE RATES WEATHERDISTORTED JOBS REPORT DELAYS FED TIGHTENING MERRILL LYNCH & CO ECONOMISTS DECLARED IN A BULLETIN BUT AT THE FED IT WAS CLEAR THAT THE TIME HAD COME THE TRADITIONAL MORNING DISCUSSION OF THE FED'S OBJECTIVES FOR THE YEAR WAS DEFERRED UNTIL AFTERNOON SO THE COMMITTEE COULD VOTE ON THE IMMEDIATE QUESTION MR GREENSPAN HAD EXPLAINED THE FED'S RATIONALE IN ADVANCE FIRST TO MR CLINTON AND HIS SENIOR ECONOMIC ADVISERS AT AN UNANNOUNCED MEETING AT THE WHITE HOUSE ON JAN 21 AND THEN TO THE PUBLIC IN CONGRESSIONAL TESTIMONY LAST MONDAY THE FED MR GREENSPAN SAID HAD BEEN HOLDING RATES DOWN SO THE ECONOMY WOULD GROW AS COMPANIES AND FAMILIES PAID OFF DEBTS FROM THE 1980S ADJUSTED FOR INFLATION SHORTTERM INTEREST RATES HAVE BEEN NEAR ZERO SINCE SEPTEMBER 1992 FED POLICY MAKERS VOTED 102 TO HOLD RATES STEADY AT THEIR DECEMBER MEETING THE FED DISCLOSED FRIDAY MR ANGELL AND GOVERNOR LAWRENCE LINDSEY DISSENTED IN FAVOR OF HIGHER RATES THE FED FIGURED THAT WITH THE ECONOMY FINALLY PICKING UP SPEED THE TIME WAS NEARING NOT TO SLAM ON THE BRAKES BUT TO LIFT ITS FOOT OFF THE ACCELERATOR WAITING FOR INFLATION TO SHOW ITSELF WOULD BE A MISTAKE MR GREENSPAN HAS SAID SINCE IT WOULD RISK A DAMAGING INCREASE IN THE LONGTERM INTEREST RATES THAT FINANCIAL MARKETS SET ALTHOUGH SOME FED POLICY MAKERS WANTED TO RAISE SHORTTERM RATES BY ONEHALF PERCENTAGE POINT NOW MR GREENSPAN'S CAUTIOUS QUARTERPOINT INCREASE WON UNANIMOUS APPROVAL HAD IT STUCK TO PAST PRACTICE THE FED WOULD HAVE SIGNALED ITS DECISION ONLY BY PRIVATELY ORDERING TECHNICIANS TO DRAIN CREDIT FROM THE BANKING SYSTEM INSTEAD THE FED ISSUED AN UNPRECEDENTED STATEMENT TO AVOID ANY MISUNDERSTANDING THE FED SAID THE MOVE WAS MADE TO SUSTAIN AND ENHANCE THE ECONOMIC EXPANSION TRYING TO MAKE CLEAR THAT IT DOESN'T SEE ANY INFLATIONARY PRESSURES BUILDING THE DECISION TO GO PUBLIC DREW ALMOST AS MUCH ATTENTION AS THE RATE MOVE ITSELF THERE WAS SPECULATION THE FED WAS ANGLING TO PLACATE HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ A TEXAS DEMOCRAT WHO HAS INTRODUCED A BILL THAT WOULD AMONG OTHER THINGS REQUIRE THE CENTRAL BANK TO LIBERALIZE DISCLOSURE MR GONZALEZ WAS QUICK TO CLAIM CREDIT FOR FRIDAY'S DISCLOSURE AND URGED CONGRESS TO ADOPT HIS PLAN LEST THE MONKS AT THE FED RECEDE BEHIND THEIR IVORY GATES MANY ON WALL STREET WERE QUICK TO APPLAUD THE FED MERRILL LYNCH ECONOMISTS AGREED THAT A TIGHTENING MOVE WAS NEEDED AT THIS TIME THE PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS JERRY JASINOWSKI BLESSED THE MODEST MOVE BUT SAID THE FED SHOULDN'T DO MORE HOWEVER SEN PAUL SARBANES A MARYLAND DEMOCRAT LIKENED THE FED TO A BOMBER COMING ALONG AND STRIKING A FARMHOUSE BECAUSE YOU THINK THAT THE VILLAIN INFLATION IS INSIDE WHEN IN FACT WHAT'S INSIDE IS A HAPPY FAMILY APPRECIATING THE RESTORATION OF ECONOMIC GROWTH BUT THERE WAS NO SUCH VIEW WITHIN THE CLINTON TEAM WHICH HAS AVOIDED THE SLIGHTEST CRITICISM OF THE FED EVER SINCE MR CLINTON'S FIRST MEETING WITH THE FED CHIEF IN LITTLE ROCK ARK IN DECEMBER 1992 I THINK THEY HAVE TAKEN A VERY CONSTRUCTIVE ATTITUDE TOWARD DEALING WITH THE FED TOWARD MONETARY POLICY AND TOWARD ECONOMIC POLICY MAKING IN GENERAL SAYS THE FED'S MR MULLINS WHEN THE FED CHAIRMAN LAST JULY LOUDLY WARNED THAT SHORTTERM RATES WOULD HAVE TO RISE THE BOND MARKET PUSHED UP LONGTERM RATES IN RESPONSE IN A PREVIEW OF TENSION THAT COULD STILL OCCUR IF THE FED MOVES TOO AGGRESSIVELY MR GREENSPAN'S COMMENTS LED SHORTLY THEREAFTER TO A TENSE EXCHANGE BETWEEN ASSISTANT TREASURY SECRETARY ALICIA MUNNELL AND MR GREENSPAN AT A LUNCH WITH OTHER FED AND TREASURY OFFICIALS BY PROVOKING AN INCREASE IN LONGTERM RATES MS MUNNELL COMPLAINED THE CHAIRMAN HAD UNDERCUT THE ADMINISTRATION AS IT WAS TRYING TO GET ITS DEFICITREDUCTION SCHEME THROUGH CONGRESS MR GREENSPAN DENIED THAT AND SAID HE HAD A RESPONSIBILITY TO WARN PEOPLE THAT RATES WOULD RISE BUT MR GREENSPAN IS RELYING ON MR CLINTON PERHAPS MORE THAN PAST FED CHAIRMEN HAVE RELIED ON PAST PRESIDENTS AN INCREASINGLY HOSTILE CONGRESS THREATENS TO RESTRUCTURE THE FED AND FORCE IT TO BE MORE OPEN AND EVEN MR BENTSEN'S TREASURY HAS PROPOSED A REGULATORY REORGANIZATION THAT WOULD YANK AWAY MUCH OF THE FED'S AUTHORITY OVER BANKS MESSRS CLINTON AND GREENSPAN MAKE AN ODD COUPLE THE FED CHAIRMAN WHO TURNS 68 NEXT MONTH IS A REPUBLICAN STALWART WHO CAME TO WASHINGTON AS PRESIDENT FORD'S ECONOMIC ADVISER 20 YEARS AGO AND WAS AN EARLY INFLUENCE ON PRESIDENT REAGAN'S ECONOMIC STRATEGY HIS EARLY MENTOR WAS PHILOSOPHER AYN RAND WHO ONCE WROTE THAT EVERY GOVERNMENT INTERFERENCE IN THE ECONOMY CONSISTS OF GIVING AN UNEARNED BENEFIT EXTORTED BY FORCE TO SOME MEN AT THE EXPENSE OF OTHERS MR CLINTON 47 AND A DEMOCRATIC BABY BOOMER GOT HIS EARLY POLITICAL EDUCATION FROM NOWLABOR SECRETARY ROBERT REICH WHO BELIEVES IN ACTIVIST GOVERNMENT MR GREENSPAN A CONSUMMATE INSIDER HASN'T HAD ANY DIFFICULTY MIXING WITH THE NEW WASHINGTON ELITE HE MINGLED WITH CLINTON APPOINTEES AT MAJOR LEAGUE BASEBALL'S ALLSTAR GAME IN BALTIMORE AND SHOWED UP AT THE NEW YEAR'S VERSION OF RENAISSANCE WEEKEND A TALKFEST THAT FOR YEARS HAS SERVED AS THE PREMIERE NETWORKING EVENT FOR THE CLINTON CROWD SOME AT THE CENTRAL BANK FRET THAT THE ALLIANCE MAY BE TOO CLOSE THE GRUMBLING AT THE FED BEGAN A YEAR AGO WHEN MR GREENSPAN TURNED UP AT HILLARY CLINTON'S SIDE WHEN THE PRESIDENT UNVEILED HIS ECONOMIC PLAN TO CONGRESS AND THE NATION ON TV MY JAW DROPPED ABOUT A FOOT SAYS THE PRESIDENT OF ONE FED REGIONAL BANK THEN APPEARING BEFORE THE SENATE BANKING COMMITTEE DAYS AFTER MR CLINTON DETAILED HIS DEFICITREDUCTION PROPOSAL THE FED CHAIRMAN THRILLED THE WHITE HOUSE AND INFURIATED REPUBLICANS BY DECLARING MR CLINTON'S PLAN AS SERIOUS CREDIBLE AND DETAILED WHETHER BECAUSE OF HIS NATURE OR HIS VIEW OF HIS ROLE MR GREENSPAN SEEMS DRAWN TO THE PRESIDENCY NO MATTER WHO OCCUPIES IT IN THE BUSH YEARS MR GREENSPAN DREW FIRE FROM INSIDE THE FED WHEN HE ACCEPTED MR BUSH'S REQUEST TO CHAIR A COMMISSION WHICH WAS NEVER FORMED TO RESOLVE TECHNICAL QUESTIONS SURROUNDING POLITICALLY CONTENTIOUS PROPOSALS TO CUT CAPITALGAINS TAX RATES AND BACK IN 1989 HE TOLD CONGRESS THAT MR BUSH'S MINIBUDGET WHICH WASN'T EVEN INTENDED TO BE A MEANINGFUL ATTEMPT AT DEFICIT REDUCTION WAS SIGNIFICANT ENOUGH TO HAVE A MAJOR IMPACT ON THE ECONOMY VETERAN GREENSPAN WATCHERS SAY ALL THIS REFLECTS THE FED CHAIRMAN'S PERSONALITY HE LIKES BEING A WASHINGTON INSIDER HE KNOWS EVERYBODY ON A FIRSTNAME BASIS HE HAS BEEN IN AND OUT OF VARIOUS ADMINISTRATIONS WHEN HE HAD HIS NEW YORK CONSULTING FIRM HE WAS IN WASHINGTON MORE THAN IN NEW YORK SAYS FORMER FED VICE CHAIRMAN PRESTON MARTIN NOTWITHSTANDING MR GREENSPAN'S CONNECTIONS THE FED WAS UNABLE TO HEAD OFF A TREASURY SCHEME TO CONSOLIDATE FEDERALBANKING REGULATION IN A NEW SUPERAGENCY WHICH WOULD ASSUME MANY OF THE FED'S CURRENT REGULATORY POWERS AFTER LABORIOUS NEGOTIATIONS FED OFFICIALS THOUGHT THEY HAD REACHED A COMPROMISE WITH THE TREASURY IN NOVEMBER AND WERE STUNNED WHEN THE TREASURY DISOWNED IT TREASURY OFFICIALS DENY THEY HAD ACTUALLY REACHED AN AGREEMENT BUT FOR REASONS THAT STILL PUZZLE FED INSIDERS AND WHITE HOUSE OFFICIALS MR GREENSPAN FAILED TO SOUND ALARMS AT THE WHITE HOUSE WHEN THE TREASURY TOLD HIM IT WAS PROPOSING A PLAN THAT WOULD COST THE CENTRAL BANK UP TO 15 OF ITS EMPLOYEES THEN AFTER 10 DAYS OF SILENCE MR GREENSPAN AND OTHER FED OFFICIALS MOUNTED A PUBLICRELATIONS BLITZ THROUGH INTERVIEWS AND OPED PIECES MR BENTSEN WHO SAYS HE WAS SURPRISED BY THE FED'S STRONG RESISTANCE REPLIED THAT THE CENTRAL BANK WAS JUST PROTECTING ITS TURF MR CLINTON'S WHITE HOUSE ECONOMIC ADVISERS WERE AGHAST THAT THE RELATIONSHIP THEY HAD CAREFULLY CULTIVATED HAD TURNED TO OPEN WARFARE THEN MR CLINTON WEIGHED IN ASKED ABOUT THE FED'S FEARS IN AN INTERVIEW LAST DECEMBER MR CLINTON REFERRED TO THE BANKING PLAN NOT AS HIS OWN BUT AS MR BENTSEN'S AND ADDED I KNOW THAT HE WOULD NOT NORMALLY DO ANYTHING THAT WOULD MAKE THEM LESS ABLE TO DO WHAT THEY'RE SUPPOSED TO LATER AT A MEETING WITH HIS ECONOMIC ADVISERS THE PRESIDENT ONLY HALFJOKINGLY ASKED MR BENTSEN FOR REASSURANCE THAT THE PLAN WOULDN'T UNDERMINE THE FED MR BENTSEN BLUSHED AND NODDED IN AFFIRMATION ACCORDING TO AN OFFICIAL WHO ATTENDED MR BENTSEN'S BANKING PLAN DIDN'T GET A MENTION IN MR CLINTON'S STATE OF THE UNION SPEECH AND AT LAST REPORT WHITE HOUSE ECONOMIC ADVISERS WERE SOUNDING OUT THE TREASURY TO SEE WHETHER A COMPROMISE MIGHT BE REACHED 9402070082 940207 CANADA'S JOBLESS RATE RISES OTTAWA CANADA'S UNEMPLOYMENT RATE ROSE TO 114 OF THE CIVILIAN LABOR FORCE IN JANUARY FROM 112 IN DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID FINANCE MINISTER PAUL MARTIN ATTRIBUTED THE INCREASE PARTLY TO A TEMPORARY SHUTDOWN OF SOME AUTO PLANTS FOR RETOOLING FOR NEW MODELS HE SAID THE JANUARY FIGURE SHOWS THE ABSOLUTE NECESSITY OF GETTING ON WITH GIVING THIS ECONOMY THE CAPACITY TO CREATE JOBS 9402070081 940207 MEDICINE PANEL TO DECIDE WHAT IS CAUSE OF PEPTIC ULCERS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BETHESDA MD A PANEL OF MEDICAL EXPERTS WILL DECIDE THIS WEEK WHETHER A BACTERIUM IS THE UNDERLYING CAUSE OF PEPTIC ULCERS AND IF SO WHETHER DOCTORS SHOULD BEGIN TRYING TO TREAT ULCERS BY ERADICATING THE BACTERIUM THE DECISION COULD DRAMATICALLY AFFECT THE WAY DOCTORS TREAT THE 25 MILLION AMERICANS WHO WILL DEVELOP A PEPTIC ULCER AT LEAST ONCE IN THEIR LIFETIMES INCLUDING THE FOUR MILLION WHO HAVE THE PAINFUL AILMENTS THE RULING IS BEING ANXIOUSLY AWAITED NOT ONLY BY ULCER PATIENTS AND THEIR DOCTORS BUT BY SOME BIG DRUG MAKERS AND THEIR INVESTORS TWO ULCER MEDICATIONS ARE AMONG THE BESTSELLING DRUGS IN THE WORLD GLAXO HOLDINGS' XANTAC BRAND OF RANTIDINE WITH ESTIMATED WORLDWIDE SALES OF 2 BILLION ANNUALLY AND SMITHKLINE BEECHAM'S TAGAMET BRAND OF CIMETIDINE WITH ANNUAL SALES OF 1 BILLION MOST PEPTICULCER PATIENTS ARE TREATED WITH DRUGS THAT BLOCK THE PRODUCTION OF STOMACH ACID THESE DRUGS CALLED H2 ANTAGONISTS ARE HIGHLY EFFECTIVE IN HEALING ULCERS BUT UNLESS TAKEN FOR MONTHS OR YEARS AFTERWARD DON'T PREVENT RECURRENCE IN MANY PATIENTS IF THE BACTERIUM IS FOUND GUILTY THE EXPERTS WILL THEN RULE ON WHETHER SEVERAL DAYS OF ANTIBIOTIC TREATMENT WILL SAFELY AND EFFECTIVELY ERADICATE IT CURING THE PATIENT OF ULCER DISEASE ALTHOUGH THE SHORTTERM ANTIBIOTIC THERAPY WILL BE COMBINED WITH AN ULCERHEALING H2 ANTAGONIST IT COULD FREE THE PATIENT FROM LONGTERM USE OF THE H2 ANTAGONISTS IT ALSO MAY SEVERELY LIMIT THE H2 ANTAGONISTICS' MARKET THE PANEL OF 15 MEDICAL EXPERTS IS BEING CONVENED HERE THIS MORNING BY THE NATIONAL INSTITUTES OF HEALTH IN A PROCEDURE CALLED A CONSENSUS DEVELOPMENT CONFERENCE THE EXPERTS ARE CHOSEN BECAUSE THEY HAVEN'T BEEN INVOLVED IN RESEARCH ON THE BACTERIUM AND HAVEN'T TAKEN SIDES ON SOME OF THE MORE CONTROVERSIAL ISSUES FOR A DAY AND A HALF THEY'LL LISTEN TO PRESENTATIONS BY RESEARCHERS AND THEN REACH A CONSENSUS CHAIRMAN TADATAKA YAMADA HEAD OF THE INTERNAL MEDICINE DEPARTMENT AT THE UNIVERSITY OF MICHIGAN MEDICAL SCHOOL IN ANN ARBOR SAYS THE PANEL ALSO WILL TRY TO AGREE ON THE BEST WAY TO DIAGNOSE INFECTIONS OF THE BACTERIUM WHICH PATIENTS SHOULD BE TREATED AND THE BEST WAY TO TREAT THEM ALTHOUGH THE ISSUE PROBABLY WON'T BE RESOLVED THE EXPERTS ALSO WILL CONSIDER THE POSSIBLE LINK OF THE BACTERIUM TO STOMACH CANCER IF PROVED DR YAMADA EXPLAINS IT RAISES THE QUESTION OF WHETHER DOCTORS SHOULD TRY TO PREVENT THE CANCER BY ERADICATING THE BACTERIUM FROM THE INTESTINES OF MILLIONS OF PEOPLE WHO ARE INFECTED BUT DON'T HAVE ULCERS OR OTHER CONSEQUENCES BUT THE LINK BETWEEN PEPTIC ULCERS AND THE BACTERIUM IS THE PANEL'S FIRST ORDER OF BUSINESS PEPTIC ULCERS ARE PERFORATIONS OF THE MUCOUS MEMBRANE LINING THE STOMACH OR MORE COMMONLY THE DUODENUM WHERE THE SMALL INTESTINE JOINS THE STOMACH THE ULCER EXPOSES UNDERLYING TISSUES TO THE ERODING EFFECTS OF STOMACH ACID THE RESULTING PAIN WHICH CAN RANGE FROM A MILD HUNGERLIKE FEELING TO A SEVERE BURNING SENSATION CAN BE RELIEVED WITH ANTACIDS SOME STOMACH ULCERS ARE CAUSED BY CHRONIC USE OF DRUGS LIKE ASPIRIN OTHERS ARE DUE TO GENETIC DISORDERS OR TUMORS BUT THE CAUSE OF THE LARGE MAJORITY OF PEPTIC ULCERS HAS BEEN A MYSTERY EVIDENCE THAT PSYCHOLOGICAL STRESS CAUSES ULCERS BY INCREASING OUTPUT OF STOMACH ACID AS POPULARLY BELIEVED WAS ALWAYS INCONCLUSIVE MEDICAL SCIENTISTS SAY A DOZEN YEARS AGO GASTROENTEROLOGISTS IN AUSTRALIA DISCOVERED THAT SOME ULCER PATIENTS HARBORED A STRANGE HELICALSHAPED BACTERIUM IN A TINY STRUCTURE THE PYLORUS THAT LIES AT THE BOTTOM END OF THE STOMACH ONE OF THEM BARRY MARSHALL NOW AT THE UNIVERSITY OF VIRGINIA SPECULATED THAT THE BACTERIUM WAS THE CAUSE OF THE ULCERS LAUNCHING A DECADE OF CONTROVERSY AND RESEARCH NOW THE DATA ARE INCONTROVERTIBLE THAT THE BACTERIUM CAN CAUSE PEPTIC ULCERS SAYS GASTROENTEROLOGIST DAVID GRAHAM OF THE VETERANS ADMINISTRATION MEDICAL CENTER IN HOUSTON BUT PRACTICING DOCTORS HAVE BEEN SLOW TO TRY DIAGNOSING AND THEN ERADICATING THE BACTERIAL INFECTION DR YAMADA SUGGESTS THAT MANY PHYSICIANS ARE WAITING FOR THE RESOLUTION OF SOME OF THE ISSUES THE PANEL WILL TACKLE OTHERS SUGGEST THERE IS A PROBLEM OF GETTING THE WORD OUT TO DOCTORS THERE'S NO MARKETING SUPPORT FOR THE ANTIBACTERIAL SIDE OF TREATING PEPTIC ULCERS SAYS HEMANT K SHAH AN INDEPENDENT SECURITIES ANALYST SPECIALIZING IN THE DRUG INDUSTRY HE EXPLAINS THAT WHILE GLAXO SMITHKLINE AND OTHERS HAVE SALES PEOPLE PUSHING THE H2 ANTAGONISTS TO DOCTORS THERE IS NO COMPARABLE SALES FORCE BEHIND THE USE OF ANTIBIOTICS FOR PEPTIC ULCERS MANY DOCTORS MAY NOT HAVE BEEN FULLY AWARE OF THE EVIDENCE IMPLICATING THE BACTERIUM MOREOVER MR SHAH ADDS MANY PEOPLE WHO USE THE H2 ANTAGONISTS ARE SATISFIED WITH THEM SINCE THESE DRUGS REALLY HELP THUS THERE ISN'T ANY STRONG PRESSURE FROM PATIENTS FOR A NEW THERAPY MR SHAH ESTIMATES THAT 60 OF THE ULCER DRUGS' SALES ARE TO PATIENTS ON LONGTERM MAINTENANCE THERAPY WHICH WOULDN'T BE NECESSARY IF ANTIBIOTICS CURED PEPTIC ULCER DISEASE THE OTHERS ARE TAKING THE DRUGS TO HEAL ULCERS BUT MANY WILL GO ON MAINTENANCE THERAPY IN THE FUTURE HE NOTES IF THIS ANTIBACTERIAL APPROACH IS PROVEN THE WAY TO GO THEN ABOUT THREEQUARTERS OF THE H2 MARKET IS AT STAKE MR SHAH SAYS 9402070080 940207 USAIR TRAFFIC INCREASES ARLINGTON VA USAIR SAID ITS JANUARY TRAFFIC ROSE SLIGHTLY TO 253 BILLION REVENUE PASSENGER MILES FROM 251 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 528 FROM 507 9402070079 940207 KLEINWORT BENSON SG WARBURG GROUP TO INVEST IN PRIVATIZED EUROPEAN FIRMS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IF HIGHTECH MEANT HOT STOCK IN THE '80S PRIVATIZATION SEEMS TO BE THE MANTRA OF INVESTING IN THE '90S LAST WEEK THE SG WARBURG GROUP AND KLEINWORT BENSON GROUP PLC SAID THEY MAY TOGETHER RAISE MORE THAN 1 BILLION 15 BILLION IN THE UK TO INVEST IN EUROPEAN COMPANIES GOING PRIVATE GUINNESS FLIGHT WHICH IS 80OWNED BY GUINNESS MAHON A UNIT OF BANK OF YOKOHAMA LAUNCHES ITS GLOBAL PRIVATIZATION UNIT TRUST OR MUTUAL FUND FEB 14 CS HOLDING AG'S CS FIRST BOSTON UNIT WANTS TO RAISE 200 MILLION FOR EASTERN EUROPEAN STOCK MARKETS FIDELITY INVESTMENTS PLANS A GLOBAL PRIVATIZATION MUTUAL FUND IN MARCH AND THE FRAMLINGTON GROUP PLC'S RUSSIAN INVESTMENT FUND RAISED 15 MILLION MORE THAN EXPECTED WHEN IT CLOSED IN DECEMBER 1993 PRIVATIZATION IS VERY SEXY NOW SAYS ONE INVESTMENT PROFESSIONAL DON'T ASK WHY OTHER MARKET PROFESSIONALS SAY IT HAS A LOT TO DO WITH THE SUCCESS OF BRITISH PRIVATIZATION PROGRAMS UNDER PRIME MINISTER MARGARET THATCHER IN THE '80S MOST OF THE FUNDS ANNOUNCED SO FAR ARE AIMED AT UK INVESTORS WHO WATCHED SHARES OF COMPANIES SUCH AS BRITISH TELECOMMUNICATIONS PLC AND BRITISH AIRWAYS PLC OUTPERFORM THE UK MARKET ONCE THEY WERE WRESTED FROM THE HANDS OF THE STATE WE DID A STUDY IN OUR PROSPECTUS SAYS LOUGH CALLAHAN DIRECTOR OF MERCURY ASSET MANAGEMENT PLC WHICH HAS INITIALLY RAISED 325 MILLION 485 MILLION FOR THE WARBURG INVESTMENT TRUST CALLED MERCURY EUROPEAN PRIVATIZATION TRUST OVER THE LAST YEAR THE PRIVATIZED COMPANIES WENT UP BY 52 AS COMPARED TO THE FT100 INDEX OF 25 ADDS MARK HOWDLE EQUITY STRATEGIST AT JP MORGAN EVERYBODY WHO IS HALF AWARE KNOWS WHAT A GOOD THING THE BRITISH PRIVATIZATIONS WERE IN THE '80S ANDREW COUCH FUND MANAGER AT GUINNESS FLIGHT SAYS HE WAS STUNNED TO LEARN LAST SUMMER THAT SHARES OF PRIVATIZED BRITISH COMPANIES ROSE NEARLY TWICE AS FAST AS THE OVERALL UK MARKET DURING THE LAST 10 YEARS THE AREA IS REDHOT HE SAYS OF COURSE NO ONE KNOWS WHETHER A SIMPLE CHANGE OF OWNERSHIP WILL MAKE A SLEW OF STATEOWNED COMPANIES IN FRANCE ITALY SPAIN GERMANY AND EVEN HUNGARY POLAND AND THE CZECH REPUBLIC MORE EFFICIENT MORE PROFITABLE AND THUS MORE VALUABLE CURRENCY RISKS WILL ADD AN ELEMENT ABSENT FROM UK PRIVATIZATIONS BUT THE FACT THAT WESTERN EUROPEAN GOVERNMENTS EXPECT TO SELL ABOUT 190 BILLION WORTH OF STOCK IN STATEOWNED COMPANIES WILL CERTAINLY TEST THE MARKET JP MORGAN & CO EXPECTS ANOTHER 100 BILLION IN WESTERN DEALS YET TO BE ANNOUNCED SUCH NUMBERS DWARF THE MONEY RAISED THUS FAR BUT THERE'S HOPE THAT ALL THIS NEW EQUITY WILL INDEED BE SOAKED UP BY BUYERS MR COUCH POINTS OUT THAT COMPANIES UNDERGOING PRIVATIZATION TEND TO BE ASSETRICH WITH STRONG BALANCE SHEETS AND NEARMONOPOLIES IN THEIR MARKET HE HOPES TO RAISE 30 MILLION TO 40 MILLION KLEINWORT BENSON SAYS IT INITIALLY EXPECTED TO RAISE ONLY ABOUT 40 MILLION WHEN IT STARTED OUT LAST DECEMBER THE OFFER WAS OVERSUBSCRIBED TO THE TUNE OF 880 MILLION WITH BOTH INSTITUTIONS AND RETAIL CUSTOMERS EXPRESSING INTEREST SIMON WHITE MANAGING DIRECTOR OF KLEINWORT BENSON INVESTMENT TRUSTS SAYS INSTITUTIONAL CLIENTS FIND BUYING STOCK IN FOREIGN COMPANIES BOTHERSOME BECAUSE OF ADMINISTRATION PROCESSES AS WELL AS ALLOCATION LIMITS PLACED BY COUNTRIES ON PURCHASES BY FOREIGN ENTITIES THE TRUST SELLS A FIXED NUMBER OF SHARES TO BE LATER TRADED ON THE LONDON STOCK EXCHANGE ELIMINATING MUCH OF THE HASSLE APPLYING FOR OUR FUND GAVE THEM TWO BITES OF THE CHERRY SAYS MR WHITE IT ALSO OF COURSE LETS FUND MANAGERS TAP INTO PRIVATIZATION MANIA EARNING FEES OF SOMETHING LESS THAN 1 ANNUALLY OF THE FUNDS' ASSETS HARDER TO EXPLAIN IS THE SUCCESS OF THE FRAMLINGTON RUSSIAN FUND THAT FUND HAS THE BACKING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND FINANCE WHICH INVESTED 166 MILLION AND OF THE INTERNATIONAL FINANCE CORP AN ARM OF THE WORLD BANK WHICH INVESTED 8 MILLION IT ORIGINALLY SOUGHT A TOTAL OF 50 MILLION BUT HEAVY DEMAND FROM US INSTITUTIONAL INVESTORS BROUGHT THE TOTAL TO 65 MILLION UNLIKE THE OTHER FUNDS HOWEVER THE FRAMLINGTON FUND IS FUNDAMENTALLY A VENTURE CAPITAL VEHICLE A CLOSEDEND FUND WITH A 10YEAR LIFE ORGANIZED UNDER THE LAWS OF LUXEMBOURG INVESTORS WERE REQUIRED TO PUT UP A MINIMUM OF 100000 THE FUND WILL INVEST IN RUSSIAN COMPANIES WITH THE ABILITY TO EARN HARD CURRENCY INVESTMENTS ARE EXPECTED TO BE HELD FOR A MINIMUM OF FIVE YEARS CCF ASSET MANAGEMENT RUSSIA A RUSSIAN COMPANY INCORPORATED BY FRAMLINGTON IS ACTING AS INVESTMENT ADVISERS EMPLOYING EIGHT RUSSIANS AS ANALYSTS IN MOSCOW RUSSIA IS TOO RISKY FOR UK FUNDS TARGETING ORDINARY PEOPLE MR COUCH SAYS HIS FUND WILL AVOID EASTERN EUROPE ALTOGETHER FOR THE FIRST FEW YEARS FOCUSING INSTEAD ON WESTERN EUROPE SOUTHEAST ASIA AND AUSTRALASIA AS WELL AS TURKEY GREECE PORTUGAL AND SOUTH AMERICA SOME OF THE EMERGING MARKETS ARE TRAVELING ON HOPE HE SAYS 9402070078 940207 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CD RADIO INC AN INITIAL OFFERING OF 45 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 675000 ADDITIONAL SHARES VIA SEIDLER COS AND FIRST MARATHON SECURITIES LTD CIBER INC AN INITIAL OFFERING OF 16 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 240000 ADDITIONAL SHARES VIA HANIFEN IMHOFF INC INTERNATIONAL LOTTERY INC AN INITIAL OFFERING OF 1050000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 157500 ADDITIONAL SHARES VIA INTERSTATE/JOHNSON LANE CORP AND STIFEL NICOLAUS & CO MAXWELL SHOE CO AN INITIAL OFFERING OF 25 MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 375000 ADDITIONAL SHARES VIA BEAR STEARNS & CO ROUGE STEEL CO AN INITIAL OFFERING OF SEVEN MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 1050000 ADDITIONAL SHARES VIA MORGAN STANLEY & CO CS FIRST BOSTON AND PAINEWEBBER INC TEXAS REGIONAL BANCSHARES INC AN INITIAL OFFERING OF 12 MILLION SHARES WITH AN OVERALLOTMENT OPTION OF AN ADDITIONAL 180000 SHARES VIA ALEX BROWN & SONS INC 9402070077 940207 WHO'S NEWS IRT CORP IRT CORP SAN DIEGO PETER W SOGNEFEST 52 YEARS OLD HAS RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER VICKI L MARION 40 A SENIOR VICE PRESIDENT HAS BEEN NAMED ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER 9402070076 940207 MATSUSHITA DENIES PLANS FOR MCA SALE BUT AIDES HINT AT FUTURE PARTNERSHIP BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL UNIVERSAL CITY CALIF IN THE FEVERISH INVESTOR CLIMATE CURRENTLY SURROUNDING ENTERTAINMENT COMPANIES REPORTS CONTINUE TO CIRCULATE ABOUT POSSIBLE PLANS BY JAPANESE PARENTS OF MOVIE STUDIOS TO SPIN OFF PART OF THEIR ASSETS THE MOST RECENT OF THESE REPORTS THAT MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN WAS CONSIDERING AN OFFERING OF MCA INC SHARES TO THE PUBLIC WAS VIGOROUSLY DENIED BY EXECUTIVES CLOSE TO THE SITUATION MCA WOULDN'T COMMENT ON THE REPORT WHICH APPEARED IN SATURDAY'S EDITIONS OF THE LOS ANGELES TIMES THESE INDIVIDUALS SAID A FAR MORE LIKELY SCENARIO BUT ONE STILL IN THE DISCUSSION STAGE AND PERHAPS FAROFF WAS SOME FORM OF PARTNERSHIP BY MCA WITH A CABLE OR TELEPHONE COMPANY MOST PARTICULARLY TELECOMMUNICATIONS INC THE CABLE GIANT WHICH HAS AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP TCI HAS A BEVY OF ENTERTAINMENT ASSETS CONCENTRATED IN ITS LIBERTY MEDIA SPINOFF WHICH MIGHT BE COMBINED WITH MCA TO LEAVE OUTSIDERS WITH A 25 TO 49 STAKE IN THE NEW COMPANY AND MCA WITH A STAKE IN LIBERTY BUT AGAIN WITH THE CONSUMMATION OF THE MERGER BETWEEN BELL ATLANTIC AND TCI MONTHS AWAY THEY CAUTION THAT THE TALKS MAY TAKE A LONG TIME TO REACH FRUITION OTHERS POINT TO A HISTORICAL RELUCTANCE FOR MATSUSHITA TO MAKE A MOVE BEFORE ACTION IS TAKEN BY ITS MORE AGGRESSIVE COMPETITOR SONY CORP SONY LONG HAS BEEN SAID TO BE CONSIDERING SPINNING OFF A STAKE IN ITS COLUMBIA PICTURES AND TRISTAR PICTURES UNITS TO THE PUBLIC AND HAS ADVERTISED ITS DESIRE TO TAKE ON A STRATEGIC PARTNER WHILE DENYING THAT ANY DISCUSSIONS ARE TAKING PLACE INDIVIDUALS ACKNOWLEDGE THAT SELLING PUBLIC SHARES MIGHT MAKE GOOD SENSE FOR MATSUSHITA AND THAT A WIDE RANGE OF POSSIBILITIES HAVE BEEN EXPLORED PEOPLE TALK ABOUT EVERYTHING ONE INDIVIDUAL SAID THESE INDIVIDUALS SAY THAT EVEN IF MATSUSHITA DID SELL A STAKE TO A CABLE OR TELEPHONE COMPANY IT COULD ALSO RAISE CASH AND GIVE INCENTIVES TO ITS US MANAGEMENT BY MAKING SHARES AVAILABLE TO THE PUBLIC IT WOULD ALSO GIVE EXECUTIVES AN IDEA OF HOW THE MARKET VALUES MCA ACQUIRED FOR MORE THAN 6 BILLION IN 1990 THE COMPANY'S OPERATING RESULTS HAVE BEEN MIXED DESPITE SOME BRIGHT SPOTS LIKE LAST SUMMER'S MOVIE BLOCKBUSTER JURASSIC PARK AND SOLID THEME PARK ATTENDANCE BUT GROWING ENTHUSIASM FOR THE VALUE OF FILM AND TV PRODUCERS AS THE NATION BEGINS TO BE WIRED FOR INTERACTIVE ENTERTAINMENT ON DEMAND AN ARDOR THAT HAS VALUED PARAMOUNT COMMUNICATIONS INC AT MORE THAN 10 BILLION HAS MADE MATSUSHITA'S INVESTMENT APPRECIATE AND MATSUSHITA WITH ITS CONSUMERELECTRONICS BUSINESS FALTERING MIGHT LIKE AN OPPORTUNITY TO CASH OUT A PORTION OF THIS INVESTMENT 9402070075 940207 MDC HOLDINGS PURCHASE DENVER MDC HOLDINGS INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED PLAN TO PURCHASE 100 OF ITS RICHMOND HOMES INC AFFILIATE MDC SAID IT ISSUED 608695 SHARES OF STOCK FOR THE 35 OF RICHMOND HOMES OWNED BY TWO MDC OFFICERS CHAIRMAN AND CHIEF EXECUTIVE LARRY A MIZEL AND EXECUTIVE VICE PRESIDENT DAVID D MANDARICH 9402070074 940207 CIRCUIT CITY JANUARY SALES ROSE RICHMOND VA CIRCUIT CITY STORES INC SAID JANUARY SALES WERE 3575 MILLION A 24 INCREASE FROM YEAREARLIER SALES OF 2879 MILLION SALES AT STORES OPEN MORE THAN ONE YEAR ROSE 6 CIRCUIT CITY ALSO SAID IT REACHED AN AGREEMENT TO ASSUME THE LEASES OF 18 LOS ANGELES AREA SILO STORES AS WELL AS THE EXTENDEDSERVICE CONTRACTS ON MERCHANDISE PREVIOUSLY SOLD FROM THOSE STORES EFFECTIVE MARCH 1 BOTH SILO AND CIRCUIT CITY ARE RETAILERS OF CONSUMER ELECTRONICS AND APPLIANCES 9402070073 940207 HEARD ON THE STREET ALUMINUM AND STEEL STOCKS ENJOY NEW PUSH AS SOME GURUS SEE STRENGTH IN CAPITAL GOODS BY WILLIAM POWER AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL IT'S A RUGGED STOCK MARKET SO LET'S PLAY IT THE HARD WAY SOME INVESTORS SAY HARD AS IN CAPITAL GOODS AS IN STEELMAKERS AND EVEN ALUMINUM COMPANIES IT IS A PUSH THAT SOME MARKET SKEPTICS DON'T AGREE WITH PARTICULARLY IN THE CASE OF THE ALUMINUM INDUSTRY WHERE EARNINGS HAVE BEEN POOR AMID RECORDLOW INFLATIONADJUSTED PRICES FOR THE METAL BUT THE BULLS ARE ADAMANT MAJOR ALUMINUM STOCKS HAVE JUMPED 11 SO FAR THIS YEAR AFTER PULLING OUT OF THE DOLDRUMS IN LATE 1993 STEEL STOCKS THIS YEAR HAVE REMAINED STRONG AFTER A 31 JUMP IN 1993 TWO OF WALL STREET'S BESTKNOWN SEERS VANGUARD GROUP'S JOHN NEFF AND LEHMAN BROTHERS MARKET GURU ELAINE GARZARELLI ARE BIG FANS OF ALUMINUM AND STEEL RESPECTIVELY WE HAVE THE ALUMINUMS LARGE MR NEFF SAID FRIDAY ACKNOWLEDGING THAT IT'S HARD TO WARM UP TO THEM IN TERMS OF CURRENT EARNINGS MR NEFF ENVISIONS AN EASING IN THE GLOBAL ALUMINUM GLUT AND GROWING ALUMINUM DEMAND BOTH FROM DETROIT AUTO MAKERS AND FROM WORLDWIDE USERS OF BEVERAGE CANS HIS BIGGEST ALUMINUM HOLDINGS ARE ALUMINUM CO OF AMERICA AND REYNOLDS METALS DESPITE HAVING ABSORBED THE LATTER STOCK'S 15 DECLINE IN 1993 BUT MR NEFF RECENTLY SOLD HIS ALUMAX FOR VALUATION REASONS HE SAYS MS GARZARELLI MEANWHILE IS POUNDING THE TABLE FOR USXUS STEEL GROUP AND OTHER STEEL STOCKS WHICH FIT INTO HER SCENARIO OF A STRENGTHENING ECONOMY USXUS STEEL IS THE STEELMAKING UNIT OF USX CORP AND TRADES ON ITS OWN ON THE BIG BOARD THIS IS THE STRONGEST UNDERPINNING I'VE SEEN FOR THIS ECONOMY SINCE 1965 SHE TOLD AN INVESTORS' CONFERENCE IN ORLANDO FLA LAST WEEK SHE RECENTLY UPGRADED THE METALS PAPER AND TRUCKING INDUSTRIES ARGUING THAT THIS IS THE 1960S ALL OVER AGAIN WHEN CAPITAL GOODS OUTPERFORM NONDURABLES SUCH AS TOBACCO AND DRUG STOCKS IN AN INTERVIEW FRIDAY MS GARZARELLI ELABORATED THE REASON WE LIKE US STEEL IS IT'S PROBABLY THE MOST CAPITALINTENSIVE CAPITALSPENDING STOCK YOU CAN THINK OF STEEL GOES INTO SPENDING ON PLANT ON MACHINERY JUST ABOUT EVERY BUILDING THERE IS THE STOCK IS EVEN MORE INVITING BY HER REASONING AFTER DECLINING 1 TO 43 IN FRIDAY'S MARKET DIVE STEELMAKERS ARE SELLING AS MUCH STEEL AS THEY CAN MAKE IN FACT FOR THE FIRST TIME EVER US STEEL IS REVAMPING A HOTSTRIP MILL ON THE FLY INSTEAD OF CLOSING DOWN THE MILL AT GARY IND FOR A MONTH FOR THE NEARLY 90 MILLION PROJECT IT'S IDLING THE OPERATION FOR 48 HOURS ONCE A MONTH US STEEL DOESN'T WANT TO MISS OUT ON THE AUTO MARKET IT SUPPLIES MUCH OF THE STEEL FOR THE BESTSELLING FORD TAURUS THE STEEL INDUSTRY CONTINUES TO EXPECT HIGHER SHIPMENTS THIS YEAR THAN IN 1993 ITSELF A STRONG YEAR AND WHILE THERE ARE SOME SIGNS OF RISING IMPORTS A BIG PART OF THAT IS BECAUSE US STEELMAKERS CAN'T MAKE ENOUGH STEEL TO KEEP UP WITH DEMAND BETHLEHEM STEEL'S BURNS HARBOR IND PLANT FOR INSTANCE IS IMPORTING SEMIFINISHED STEEL ANOTHER SIGN OF THE INDUSTRY'S STRENGTH ARMCO'S JOINT CARBONSTEEL VENTURE WITH KAWASAKI STEEL CORP OF JAPAN WILL BE PUT ON THE MARKET VIA AN INITIAL PUBLIC OFFERING SOME INVESTORS HAVE A HARDER TIME GETTING COMFORTABLE WITH ALUMINUM ALUMINUM STOCKS HAVE BEEN BUOYED BY THE RECENT ACCORD OUT OF BRUSSELS TO CUT GLOBAL OUTPUT BY ROUGHLY 10 AN ATTEMPT TO ADDRESS OVERSUPPLY BUT WILL THE ACCORD STICK AFTER ALL THE CUTS ARE LARGELY VOLUNTARY MAVERICK PRODUCERS MAY CHOOSE TO IGNORE THEM IF PRICES RISE RUSSIAN SMELTERS DESPERATE FOR CURRENCY MAY NOT GO ALONG WITH THEIR GOVERNMENT'S WISHES TO SLASH PRODUCTION ALUMINUM CO OF AMERICA KNOWN AS ALCOA JUST REPORTED A WIDERTHANEXPECTED QUARTERLY NET LOSS OF 869 MILLION OR 1 A SHARE IT'S CRAZY SAYS A LARGE NEW YORK INVESTOR WHO IS SHORTING THE STOCK THE BULLISH STORY IS FINE HE SAYS BUT NOT WHEN ALCOA'S STOCK PRICE AT 76 1/8 IS SELLING CLOSE TO ITS ALLTIME HIGH A SHORT SALE IS A BET THAT A STOCK WILL DECLINE THE LAST TIME ALCOA STOCK SOLD AT THIS LEVEL WAS IN THE '50S AND THEY WERE EARNING 10 A SHARE AND NOW THEY'RE LOSING MONEY THE INVESTOR GROWLS THE THING THAT'S IMPLAUSIBLE TO ME IS IF ALUMINUM PRICES ARE REALLY GOING UP THEN INFLATION IS BACK AND THAT'S BAD FOR THE MARKET INDEED THERE ISN'T UNIVERSAL AGREEMENT ABOUT THE METALS STOCKS EVEN AMONG PROPONENTS OF ONE METAL OR THE OTHER ALUMINUM FAN MR NEFF MANAGER OF VANGUARD'S WINDSOR FUND HAS HIS DOUBTS ABOUT STEEL WE DID HAVE BIG HOLDINGS IN STEELS BUT THEY'VE HAD A PRETTY GOOD RUN AND WE'VE LIGHTENED UP THERE WITHOUT NAMING NAMES MR NEFF SAYS 9402070072 940207 ENTERPRISE INTERACTIVE PROJECTS GIVE DESIGN FIRMS A NEW ANGLE SMALL COMPANIES USE MULTIMEDIA TO GET MUSEUMGOERS MORE INVOLVED BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL TO UNDERSCORE THE HORROR OF THE NAZI ERA FILMMAKER STEVEN SPIELBERG SHOT SCHINDLER'S LIST MOSTLY IN BLACK AND WHITE AND USED A STARK DOCUMENTARY STYLE IN WASHINGTON'S NEW HOLOCAUST MUSEUM DESIGNER RALPH APPELBAUM RELIED ON A DIFFERENT WEAPON SPECTATOR INVOLVEMENT MR APPELBAUM CONSTRUCTED A SCALE MODEL OF THE AUSCHWITZ DEATH CAMP REPLETE WITH CROSSSECTION VIEWS OF THE GAS CHAMBERS OVERLOOKING THE BARRACKS AT AUSCHWITZ VISITORS CAN LISTEN TO SURVIVORS DESCRIBING WHAT IT WAS LIKE TO LIVE THERE A BANK OF COMPUTER TERMINALS ALLOWS VISITORS TO CALL UP STORIES AND ARTICLES THAT DEPICT THE AMERICAN RESPONSE TO THE HOLOCAUST AT THE END OF THE EXHIBIT VISITORS CAN TAP INTO A GIANT DATABASE AND RETRIEVE INFORMATION THAT ISN'T ACCESSIBLE ELSEWHERE VISITORS ALSO RECEIVE THE NAME OF SPECIFIC HOLOCAUST VICTIMS AND CAN FOLLOW THEIR EXPERIENCES IN VARIOUS PLACES ON DISPLAY ALLOWING VISITORS TO INTERACT WITH DISPLAYS THROUGH VARIOUS MEDIA THESE PROJECTS AIM TO HELP THE SPECTATOR IDENTIFY WITH HISTORICAL EVENTS AND PEOPLE THEY ALSO REPRESENT A BIG STEP FOR THEIR CREATORS WHILE BIG COMPANIES EXPERIMENT WITH MULTIMEDIA AS A NEW SOURCE OF EARNINGS YEARS FROM NOW SMALLER FIRMS SUCH AS RALPH APPELBAUM ASSOCIATES ARE ALREADY EARNING PROFITS IN THE FIELD TACKLING MULTIMEDIA TECHNIQUES HAS MADE MANAGEMENT MORE COMPLEX BUT IT ALSO HAS HELPED FIRMS WIN FAR BIGGER CONTRACTS THAN THEY EVER ENJOYED BEFORE MOREOVER EXPERIENCE WITH THE NEW TECHNOLOGY GIVES FIRMS A MAJOR COMPETITIVE ADVANTAGE AGAINST OTHER DESIGN CONCERNS MUSEUMS AND PROFITMAKING CORPORATIONS ALIKE CALL ON DESIGN BOUTIQUES SUCH AS APPELBAUM ASSOCIATES AND EDWIN SCHLOSSBERG INC TO DRAW UPON MULTIMEDIA TECHNOLOGY AND ENGAGE AUDIENCES IN FUTURISTIC WAYS THE FINISHED WORKS MELD CONVENTIONAL DESIGNS WITH COMPLEX HIGHTECH CONSTRUCTIONS A FEW YEARS AGO THE SCHLOSSBERG AND APPELBAUM CONCERNS MAINLY RELIED ON ROUTINE JOBS FOR FIVE AND SIXDIGIT SUMS NOW THAT THE POSSIBILITIES OF MULTIMEDIA TECHNOLOGY HAVE EXPANDED RAPIDLY THE JOBS CAN RUN INTO SEVERAL MILLION DOLLARS MR SCHLOSSBERG'S COMPANY RECENTLY DESIGNED THE PUBLIC SPACE INCLUDING A MUSEUM FOR SONY CORP'S MADISON AVENUE HEADQUARTERS A SPRAWLING PLAZA WITH AN ESTIMATED PRICE TAG OF MORE THAN 20 MILLION THE CONCERN IS NOW WORKING ON A MULTIMILLIONDOLLAR HIGHTECH CHILDREN'S MUSEUM IN OMAHA NEB ONLY TWO OR THREE YEARS AGO WE HAD TO TAKE ON SIX TO 10 PROJECTS A YEAR MR SCHLOSSBERG SAYS NOW THREE TO SIX PROJECTS BRING IN THE SAME REVENUE IF NOT MORE HE ADDS MR APPELBAUM'S NEW COMMISSIONS INCLUDE A LARGE DETROIT EXHIBIT THAT WILL CELEBRATE BLACK ENTREPRENEURSHIP AND THE ACHIEVEMENTS OF MOTOWN RECORDS AND ITS FOUNDER BARRY GORDY THE FIRM SAYS ITS FEE FOR REDESIGNING SIX EXHIBITS AT NEW YORK'S AMERICAN MUSEUM OF NATURAL HISTORY INCLUDING THE MUSEUM'S FAMED DINOSAURS WILL BE ABOUT 20 MILLION MULTIMEDIA TECHNOLOGY HAS GIVEN NEW IMPETUS TO INTERACTIVITY SAYS MICHAEL SPOCK VICE PRESIDENT OF PUBLIC PROGRAMS AT CHICAGO'S FIELD MUSEUM WITH MORE THAN 8000 MUSEUMS SEARCHING FOR WAYS TO ATTRACT AUDIENCES AND CORPORATIONS LOOKING TO GET CLOSE TO THEIR CUSTOMERS THERE'S A REAL MARKET FOR THOSE WHO ARE EXPERIENCED IN SUCH DESIGNS ADDS THE OFFICIAL WHO PIONEERED SOME OF THE FIRST INTERACTIVE EXHIBITS AS A CURATOR OF BOSTON'S CHILDREN'S MUSEUM CREATING THESE NEW EXHIBITS MEANS MANAGING DIVERSITY MR SCHLOSSBERG FOR EXAMPLE WORKS WITH A GROUP OF 45 THAT INCLUDES ARCHITECTS INDUSTRIAL DESIGNERS SCENIC PAINTERS HISTORIANS PSYCHOLOGISTS EVEN POETS MR APPELBAUM'S GROUP HAS 55 MEMBERS WITH EQUALLY VARIED BACKGROUNDS YOU NEED PEOPLE FROM A VERY WIDE MIX OF TRAINING AND BACKGROUND MR SCHLOSSBERG SAYS I NEED PEOPLE WHO ARE NOT LIKE ME TO PRESENT FIVE OR SIX OR EVEN 10 WAYS TO APPROACH A SUBJECT HE SAYS GIANT MULTIMEDIA DESIGN ALSO TAKES RESEARCH AT THE SONY PROJECT FOCUS GROUPS AS WELL AS ROLEPLAYING BY THE DESIGN TEAMS YIELDED MANY OF THE QUESTIONS THAT PEOPLE WANTED TO HAVE ANSWERED THE MUSEUM PROJECT AT SONY PLAZA WHICH WILL OPEN NEXT MONTH AIMS TO SHOW HOW AUDIO AND VISUAL TECHNOLOGY HAS EVOLVED OVER THE PAST 50 YEARS WHEN VISITORS ENTER A COMPUTER USING DIGITAL TECHNOLOGY WILL CAPTURE THEIR FACES AND VOICES ON SMALL CARDS AS THEY WALK THROUGH THE EXHIBIT THEY CAN USE THE CARDS TO HEAR THEIR VOICES AND SEE THEIR PICTURES AS THEY WOULD HAVE BEEN DUPLICATED AT VARIOUS STAGES OF TECHNOLOGICAL DEVELOPMENT A BLACKANDWHITE PICTURE ON A 1945 TELEVISION SCREEN COMES ACROSS AS GRAINY AND BLURRED ON A MODERN DAY HIGHDEFINITION TV SCREEN IT IS REMARKABLY SHARP AND LIFELIKE AT THE HOLOCAUST MUSEUM MR APPELBAUM FACED DIFFERENT PROBLEMS THERE ALREADY WAS AN ENORMOUS AMOUNT OF KNOWLEDGE ABOUT THE EVENTS SURROUNDING THE HOLOCAUST HE EXPLAINS AND HE DIDN'T WANT TO INUNDATE VISITORS WITH EXCESSIVE VISUAL MATERIAL PSYCHOLOGISTS ALSO WARNED AGAINST USING GRAPHIC VISUALS THAT COULD DISTURB CHILDREN THE FINAL DESIGN IS A MELANGE OF SIMPLE OBJECTS AND HIGHTECHNOLOGY PERSONAL ITEMS SUCH AS SHOES AND SUITCASES BECOME REMEMBRANCES OF VICTIMS AN OLD IBM HOLLERITH COMPUTER A RAILROAD CAR ARE REMINDERS OF SIMPLE OBJECTS THAT BECOME TOOLS OF OPPRESSION INTERACTIVE AUDIO AND VIDEO MATERIALS PUT VISITORS IN CLOSE CONTACT WITH THE EVENTS WE DIDN'T WANT TO CONFRONT AUDIENCES WITH THE HORRIBLE EXPERIENCE OF MURDER AND GENOCIDE THAT'S ALREADY BEEN DONE WE NEEDED TO USE THE TECHNOLOGY TO MAKE THEM UNDERSTAND WHY AND HOW SAYS MR APPELBAUM MESSRS SCHLOSSBERG AND APPELBAUM ARE WINNING THE BIG MULTIMEDIA CONTRACTS PARTLY BECAUSE THEY HAVE HONED THEIR SKILLS ON SMALLER PROJECTS MR SCHLOSSBERG STARTED HIS DESIGN FIRM IN 1977 MAINLY CONCENTRATING ON EDUCATIONAL PROJECTS IN 1981 HE DESIGNED A FARM IN MASSACHUSETTS TO TEACH HUMANE TREATMENT OF ANIMALS VISITORS HAVE TO WEAR AN OPTICAL MASK THAT ENABLES THEM TO SEE OBJECTS AS SHEEP SEE THEM AT BUSCH GARDENS IN WILLIAMSBURG VA MR SCHLOSSBERG RIGGED CHAIRS TO SIMULATE THE MOTION OF DIFFERENT TRAVEL MODES SUCH AS SPACE SHUTTLES SEA PLANES AND DOG SLEDS AT THE HENRY FORD MUSEUM IN DEARBORN MICH MR SCHLOSSBERG DESIGNED A 3200 SQUAREFOOT MAZE OF TUBES PULLEYS LEVERS WHEELS ROPES CRANKS PEDALS VALVES AND 5000 BALLS OF VARIOUS COLORS TO HELP VISITORS UNDERSTAND THE ROLE OF TEAMWORK IN INNOVATION VISITORS DEVISE STRATEGIES TO SORT ALL THOSE BALLS AND CHANNEL THEM THROUGH THE MAZE THE MORAL OF THE GAME IF THEY DON'T WORK TOGETHER THEY CAN'T SOLVE THE PROBLEM 9402070071 940207 WHO'S NEWS INVESTCORP CHOOSES BEAR STEARNS'S BEWKES FOR MANAGEMENT PANEL NEW YORK E GARRETT BEWKES III SENIOR MANAGING DIRECTOR OF CORPORATE FINANCE AT BEAR STEARNS COS AND ONE OF ITS TOP THREE INVESTMENT BANKERS RESIGNED TO JOIN INVESTCORP AN INTERNATIONAL INVESTMENT GROUP BASED IN BAHRAIN MR BEWKES 43 YEARS OLD WILL JOIN THE MANAGEMENT COMMITTEE OF INVESTCORP WHICH HAS A PORTFOLIO OF RETAIL COMPANIES IN THE US AND OWNS ON BEHALF OF INVESTORS SUCH COMPANIES AS SAKS FIFTH AVENUE AND GUCCI GROUP MR BEWKES WHO DIDN'T RETURN PHONE CALLS SPENT SEVEN YEARS AT THE NEW YORK INVESTMENT BANK AND SHARED THE COHEAD OF INVESTMENT BANKING WITH TWO OTHER SENIOR EXECUTIVES 9402070070 940207 WHO'S NEWS PRESIDENT TO QUIT POST AT TIME WARNER UNIT NEW YORK MICHAEL JAY SOLOMON 56 YEARS OLD SAID HE WILL LEAVE AS PRESIDENT OF TIME WARNER INC'S WARNER BROS INTERNATIONAL TELEVISION DISTRIBUTION ON APRIL 1 TO FORM HIS OWN COMPANY IN LOS ANGELES TO SEEK INTERNATIONAL JOINT VENTURES IN ALL AREAS OF NEW COMMUNICATIONS TECHNOLOGY A SUCCESSOR HASN'T BEEN NAMED BUT COMPANY EXECUTIVES SAID A LEADING CONTENDER IS JEFFREY SCHLESINGER WHO HAD BEEN MR SOLOMON'S SECOND IN COMMAND AT THE UNIT WHICH DISTRIBUTES ALL WARNER TV PROGRAMS OVERSEAS MR SOLOMON WAS A COFOUNDER OF TELEPICTURES CORP IN 1978 WHICH LATER MERGED WITH LORIMAR CORP LORIMAR TELEPICTURES CORP WAS IN TURN ACQUIRED BY WARNER BROS IN 1989 MR SOLOMON WHOSE CONTRACT AT WARNER BROS WAS TO EXPIRE SAID HE ALWAYS INTENDED TO GO OUT ON HIS OWN AGAIN IT'S JUST MY PERSONALITY I'M AN ENTREPRENEUR HE SAID I FOUND NOTHING TO KEEP ME HERE AT WARNER BROS WARNER SAID IT WISHED MR SOLOMON WELL IN HIS VENTURE 9402070069 940207 BUSINESS BRIEF BELLSOUTH CORP SUBSIDIARY SELLS ITS STAKE IN MEXICAN CELLULAR CONCERN A BELLSOUTH CORP SUBSIDIARY SAID IT SOLD ITS INTEREST IN THE MEXICAN CELLULAR COMPANY COMMUNICACIONES CELULARES DE OCCIDENTE SA TO GRUPO IUSACELL SA ALTHOUGH DETAILS OF THE TRANSACTION WEREN'T DISCLOSED BELLSOUTH SAID IT EXPECTS THE SALE TO BOOST ITS EARNINGS COMCEL BEGAN PROVIDING CELLULAR TELEPHONE SERVICE THROUGHOUT WESTERN MEXICO INCLUDING THE CITY OF GUADALAJARA IN AUGUST 1990 CHARLES B COE PRESIDENT OF BELLSOUTH INTERNATIONAL SAID WE CONTINUE TO LOOK FOR OTHER OPPORTUNITIES IN LATIN AMERICA INCLUDING MEXICO 9402070068 940207 BUSINESS BRIEF EASTMAN KODAK CO COMPANY PLANS TO RESUME OPERATIONS IN SOUTH AFRICA EASTMAN KODAK CO SAID IT WOULD RESUME BUSINESS ACTIVITY IN SOUTH AFRICA AFTER AN ABSENCE OF ABOUT SIX YEARS THE ROCHESTER NY PHOTOGRAPHY COMPANY SAID IT EXPECTS TO EMPLOY 15 TO 20 PEOPLE IN SOUTH AFRICA BY MIDYEAR AND WILL CONCENTRATE ON MARKETING ITS CONSUMER AND PROFESSIONAL PRODUCTS INCLUDING THOSE IN ITS PHOTOGRAPHY COPIER MOTIONPICTURE AND HEALTH DIVISIONS A KODAK SPOKESMAN SAID THE OPERATIONS WOULD MOST LIKELY BE BASED IN JOHANNESBURG BEFORE KODAK LEFT SOUTH AFRICA IN 1987 ITS SALES THERE TOTALED LESS THAN 100 MILLION LESS THAN 1 OF ITS WORLDWIDE SALES 9402070066 940207 CORRECTIONS & AMPLIFICATIONS RYLAND GROUP INC SAID PRIORITIES IN 1994 INCLUDE IMPROVING ITS HOMEBUILDING OPERATIONS AN ARTICLE FRIDAY OMITTED THIS GOAL IN CITING THE COMPANY'S FOCUS ON OPTIMIZING THE STRENGTH OF ITS MORTGAGE OPERATIONS AND MAXIMIZING SHAREHOLDER VALUE PROGRAM TRADING STATISTICS THAT RAN IN FRIDAY'S EDITION WERE FOR THE WEEK ENDED JAN 28 THE TABLE WAS LABELED INCORRECTLY FOR THE WEEK ENDED FEB 3 ALCO STANDARD CORP'S UNISOURCE UNIT ACQUIRED ONLY THE HAWAIIAN PRINTING PAPER DISTRIBUTION BUSINESS OF BOISE CASCADE CORP'S HOPACO BUSINESS AN ITEM IN LAST MONDAY'S BUSINESS BRIEFS SECTION INCORRECTLY SAID UNISOURCE ACQUIRED THE ENTIRE HOPACO BUSINESS ROGERS COMMUNICATIONS INC HASN'T ATTACHED A VALUE TO ITS PLANNED OFFER FOR MOST OF MACLEAN HUNTER LTD AN ARTICLE THURSDAY SAID THE COMPANY VALUED THE OFFER AT 27 BILLION CANADIAN DOLLARS US203 BILLION THE FIGURE REPRESENTED THE INDICATED VALUE OF SUCH AN OFFER USING STOCK PRICES AT THAT TIME 9402070065 940207 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC NEW COMPANY IN ARGENTINA TO MARKET LIFE INSURANCE AMERICAN INTERNATIONAL GROUP INC SAID ITS AMERICAN LIFE INSURANCE CO UNIT FORMED A COMPANY TO MARKET DOLLARDENOMINATED LIFE INSURANCE PRODUCTS IN ARGENTINA THE NEW COMPANY ALICO COMPANIA DE SEGUROS DE VIDA SA WILL BE BASED IN BUENOS AIRES AND WILL TARGET THE MIDDLEINCOME MARKET SELLING PRIMARILY THROUGH A NETWORK OF AGENTS RECENT CHANGES IN ARGENTINA PERMIT FULL FOREIGN OWNERSHIP OF LICENSED INSURANCE COMPANIES AND REMOVE CERTAIN LIMITATIONS ON FOREIGN CURRENCY TRANSACTIONS AND INVESTMENTS ACCORDING TO AIG A NEW YORKBASED INSURANCE CONCERN 9402070064 940207 TEAMSTERS CHIEF CALLS UPS STRIKE DESPITE INJUNCTION BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MEDIATION ATTEMPTS SUDDENLY BROKE DOWN LAST NIGHT THE TEAMSTERS UNION HAS ADVISED ITS WORKERS TO DEFY A COURT ORDER AND STRIKE UNITED PARCEL SERVICE OF AMERICA INC STARTING TODAY A STRIKE BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS COULD CRIPPLE THE ATLANTABASED PACKAGE CARRIER AND DISRUPT BUSINESSES THROUGHOUT THE COUNTRY FROM CATALOG RETAILERS TO AUTO MANUFACTURERS BUT IT IS UNCLEAR HOW MANY UNION LOCALS WILL HONOR THE STRIKE AGAINST UPS WHICH HANDLES 11 MILLION PACKAGES A DAY AND IS THE WORLD'S LARGEST PACKAGE CARRIER THE COMPANY SAID THAT BASED ON A SURVEY OF UNION LOCALS IT FULLY EXPECTS EMPLOYEES TO REPORT TO WORK TODAY THE CALL FOR A STRIKE WHICH SHOCKED MANY LOCALS AND UPS CAME AFTER A WEEKEND OF TALKS AND LEGAL ACTIONS THAT THE COMPANY AND UNION SAID WOULD AVERT A WALKOUT AT ISSUE IS UPS'S PACKAGEWEIGHT LIMIT SCHEDULED TO JUMP TO 150 POUNDS FROM 70 POUNDS TODAY WHICH THE UNION SAID WOULD CAUSE SERIOUS WORKER INJURIES UNION LEADERS SAID THAT DURING THE MEDIATED TALKS UPS REFUSED TO NEGOTIATE THE NEW LIMIT UPS SAID IT CONTINUES TO WORK THROUGH A FEDERAL MEDIATOR TO RESOLVE THE SITUATION WE CANNOT UNDERSTAND WHY THEY WOULD STRIKE OVER A SERVICE THAT IS SAFE AND WOULD MEAN MORE JOBS AND JOB SECURITY SAID A UPS SPOKESMAN IN AN ELECTRONIC MESSAGE SENT TO UNION LOCALS LAST NIGHT RON CAREY THE TEAMSTERS GENERAL PRESIDENT SAID THE NEW WEIGHT LIMIT IS INHUMANE AND UPS HAS NO LEGAL RIGHT TO IMPOSE IT THE STRIKE COULD BE RISKY FOR THE UNION AND THE EMBATTLED MR CAREY WHO IS TRYING TO CONSOLIDATE POWER AFTER A HARDFOUGHT ELECTION IN 1990 MOREOVER ON FRIDAY NIGHT UPS WON A FIVEDAY TEMPORARY RESTRAINING ORDER FROM A FEDERAL JUDGE IN WASHINGTON DC BARRING A STRIKE A HEARING FOR A PERMANENT INJUNCTION WAS TO BE SCHEDULED FOR EARLY THIS WEEK UNLIKE COMPETITOR FEDERAL EXPRESS CORP WHICH HAS HAD A 150POUND WEIGHT LIMIT FOR 10 YEARS UPS DOESN'T INTEND TO PROVIDE BACK BRACES OR REQUIRE THAT TWO OR MORE WORKERS CARRY PACKAGES OVER 75 POUNDS UPS SAYS CARRIERS WILL HAVE TO CALL DISPATCH FOR HELP IF THEY NEED IT AND ADDS THAT IT HAS INVESTED MILLIONS OF DOLLARS IN NEW ROLLERS CARTS AND TRAINING VIDEOS TO ENSURE WORKER SAFETY UPS ALSO ARGUES THAT THE 150POUND WEIGHT IS STANDARD IN THE INDUSTRY AND NECESSARY TO REMAIN COMPETITIVE MOREOVER UPS SAID PACKAGES OVER THE OLD 70POUND LIMIT WILL MAKE UP LESS THAN 1 OF TOTAL VOLUME A STRIKE COULD BE COSTLY FOR THE TEAMSTERS THE UNION'S STRIKE FUND IS DOWN TO 18 MILLION ENOUGH TO SUSTAIN THE 165000 TEAMSTERS WORKERS AT UPS FOR ABOUT THREE DAYS MOREOVER UPS HAS SAID IT WOULD HOLD THE LOCALS LIABLE FOR COSTS WHICH COULD RUN TENS OF MILLIONS OF DOLLARS A DAY UNION MEMBERS DIDN'T VOTE ON THE STRIKE AND IT WAS UNCLEAR LAST NIGHT HOW MANY LOCALS WOULD FOLLOW MR CAREY'S DIRECTIVE BUT SEVERAL LOCALS IN THE MIDWEST SAID THEY WOULD DEFY MR CAREY'S CALL FOR A STRIKE BECAUSE OF THE LIABILITY 9402070063 940207 BUSINESS BRIEF CANADIAN IMPERIAL BANK ABBEY NATIONAL TO PURCHASE UK RESIDENTIAL MORTGAGES CANADIAN IMPERIAL BANK OF COMMERCE SAID IT WILL RECORD A SPECIAL GAIN OF ABOUT 19 MILLION CANADIAN DOLLARS US143 MILLION FROM THE SALE OF A PORTFOLIO OF RESIDENTIAL MORTGAGES IN BRITAIN TO ABBEY NATIONAL PLC CANADIAN IMPERIAL SAID THE PORTFOLIO HAS A FACE VALUE OF 900 MILLION US134 BILLION OF MORTGAGES ABOUT 10 OF WHICH ARE NONPERFORMING THE TORONTO BANK SAID THE SALE FITS WITH ITS STRATEGY OF CONCENTRATING ON ITS NORTH AMERICAN OPERATIONS CANADIAN IMPERIAL SAID IT HAS ANOTHER BRITISH MORTGAGE PORTFOLIO WITH A FACE VALUE OF 241 MILLION POUNDS THAT IT PLANS TO SELL OVER THE NEXT FEW MONTHS ABBEY NATIONAL A BRITISH BUILDING SOCIETY WHICH IS SIMILAR TO A SAVINGS AND LOAN SAID IN A STATEMENT THAT THE PURCHASE IS PART OF ITS STRATEGY TO INCREASE ITS SHARE OF THE UK RESIDENTIAL MORTGAGE MARKET 9402070062 940207 MANAGER'S JOURNAL THE MYTH OF THE HEARTLESS BUSINESSMAN BY HUGH AARON STARTING OUT IN BUSINESS IS NEVER EASY BUT THE IMPRESSION THAT IT'S NOTHING BUT A DOGEATDOG WORLD OUT THERE FOR THOSE ON THEIR OWN IS GREATLY EXAGGERATED WHEN I STARTED OUT IN MY OWN BUSINESS I FOUND TO MY SURPRISE BUSINESS PEOPLE FRIENDS AND RELATIVES GOING OUT OF THEIR WAY TO HELP AT FIRST I THOUGHT THAT I WAS GETTING THE PERMANENT COLD SHOULDER FROM MOST OF OUR PROSPECTIVE CUSTOMERS COMPANY PRESIDENTS AND PURCHASING AGENTS I HAD CALLED ON BEFORE I WAS ON MY OWN AFTER A YEAR I WAS AMAZED TO FIND THAT THEY EVENTUALLY CAME THROUGH THEY HAD MERELY BEEN WAITING FOR PROOF OF OUR STAYING POWER BUT WHY DID THEY BOTHER AT ALL OUR PRODUCTS AND SERVICE WERE NO BETTER THAN OUR BEST COMPETITORS' PERHAPS THEY FELT THAT ANOTHER SUPPLIER ON THE SCENE WOULD BENEFIT THEM BUT KNOWING THE INDIVIDUALS AND SEEING THEIR DELIGHT IN GIVING US ORDERS I BELIEVED THAT THEY WERE MOTIVATED AT LEAST IN PART BY THEIR INHERENT GENEROSITY I ENCOUNTERED OTHER SUCH ACTS DURING THOSE EARLY YEARS NEEDING A GOOD CERTIFIED PUBLIC ACCOUNTANT I CONSULTED ONE WHO WAS HIGHLY RECOMMENDED BUT EXPENSIVE ON EXAMINING MY DISMAL FINANCIALS HE POINTED OUT THAT I COULDN'T AFFORD HIM THEN AFTER A PAUSE HE ADDED THAT HE WOULD DO THE WORK GRATIS UNTIL THE COMPANY MOVED INTO THE BLACK I WAS ASTONISHED DON'T BE HE SAID AS THE COMPANY PROGRESSED THROUGH THE YEARS HE WOULD EXPECT IT TO MAKE IT UP TO HIM HIS FIRM SERVED MY COMPANY FOR THE NEXT 20 YEARS UNTIL I SOLD IT HIS GESTURE IS AS INDELIBLE IN MY MIND AS IF IT HAD JUST HAPPENED ALSO DURING THOSE YEARS WHEN A RECESSION STRUCK AND MY COMPANY FELL INTO SUCH FINANCIAL STRAITS THAT I HAD EXHAUSTED ALL BANK CREDIT I CALLED MY WIFE'S WEALTHY UNCLE FOR HELP HIS FIRST AND ONLY QUESTION HOW MUCH DO YOU NEED WHEN I ASKED FOR 50000 EQUIVALENT TO ABOUT 500000 TODAY HE NEVER FLINCHED LATER WHEN THE COMPANY STILL HAD A NEGATIVE NET WORTH AND MY TWO PARTNERS WERE SEEKING TO SELL THEIR SHARES HE OFFERED TO BUY THEM OUT ALTHOUGH I KNEW HE WOULD MAKE AN IDEAL SILENT PARTNER I WAS UNSURE OF THE FUTURE AND FEARED HIS RISK WOULD BE TOO HIGH I WOULDN'T ALLOW IT UNWITTINGLY I DID HIM A DISSERVICE THE COMPANY GREW TO BE WORTH SEVERAL MILLION DOLLARS BUT BOTH HE AND I WERE MOTIVATED BY SOMETHING MORE THAN PERSONAL GAIN RESPECT AND CONCERN FOR EACH OTHER MY EXPERIENCE IN BUSINESS SIMPLY DOESN'T SQUARE WITH NOVELS AND MOVIES IN WHICH BUSINESS PEOPLE ARE PORTRAYED AS HEARTLESS SELFCENTERED AND EXPLOITERS OF OTHERS ONE CUSTOMER WHOM I CALLED ON FOR FIVE YEARS TO NO AVAIL FINALLY SOUGHT OUR HELP WHEN OUR COMPETITOR FAILED HIM IN AN EMERGENCY WE PERFORMED AND BECAME HIS SOLE SUPPLIER FOR MORE THAN A DECADE HE COULD HAVE SHOPPED AROUND AND TRIED TO DRIVE OUR PRICES DOWN IN FACT THERE WAS NO NEED WE CHARGED HIM NO MORE THAN WE CHARGED HIS COMPETITORS WHO DROVE US TO THE WALL WE WERE AS LOYAL TO HIS COMPANY AS HE WAS TO OURS SOME YEARS LATER WE WERE FACED WITH HAVING TO PAY OFF THE MATURING PRINCIPAL OF A LARGE LOAN IF THE COMPANY FAILED TO MEET THE PAYMENT IT WOULD SPELL DISASTER FOR ME PERSONALLY OUR CASH FLOW WAS INSUFFICIENT AND OUR LINE OF CREDIT FULLY EXTENDED EXPECTING THE WORST I VISITED THE VICE PRESIDENT OF THE BANK AND DESCRIBED OUR PROBLEM INSTEAD OF PANICKING AND TAKING HARSH STEPS TO PROTECT THE BANK'S CLAIM THE VICE PRESIDENT CALMLY EXAMINED POSSIBLE WAYS TO RAISE ADDITIONAL FUNDS HE FOUND THEM IN OUR REAL ESTATE WHICH HAD APPRECIATED CONSIDERABLY OVER THE YEARS BY MORTGAGING IT WE WERE ABLE TO PAY OFF THE LOAN AND CONVERT OUR SHORTTERM DEBT INTO LONGTERM DEBT THE BANK HAD GIVEN US A NEW LEASE ON LIFE I'VE HAD A FRIENDLY FEELING TOWARD BANKS EVER SINCE CERTAINLY NOT ALL MY EXPERIENCES IN BUSINESS WERE UPLIFTING WE HAD OUR SHARE OF DEADBEAT CUSTOMERS SOME OF WHICH TOOK US ROYALLY BUT THEY DID IT ONLY ONCE AS A RESULT WE ADOPTED A TOUGH CREDIT POLICY WE LEARNED TO AVOID CUSTOMERS THAT WERE UNREASONABLE IN THEIR DEMANDS OR UNWILLING TO LET US BENEFIT FROM THE RELATIONSHIP MOST OF OUR PRODUCTS WERE CUSTOMMADE CUSTOMERS CALLED IN THEIR ORDERS OVER THE PHONE THE ORDERS RANGING IN VALUE FROM A FEW HUNDRED TO TENS OF THOUSANDS OF DOLLARS GENERALLY REQUIRED DELIVERY OF GOODS WITHIN ONE OR TWO DAYS IT MEANT THAT WE WOULD USUALLY BEGIN PRODUCING BEFORE RECEIVING A CONFIRMING PURCHASE ORDER THIS WAS BEFORE FAXES THE CUSTOMER'S WORD ALONE WAS ENOUGH IN MY 20YEAR STINT AS CEO NOT ONCE DID A CUSTOMER GO BACK ON IT UNUSUAL NOT AT ALL WITHOUT SUCH TRUST BUSINESS COULDN'T BE CONDUCTED SIMILAR TRANSACTIONS HAPPEN MILLIONS OF TIMES EVERY DAY DOGEATDOG ONLY TO THAT MINORITY THE SELFSEEKING AND RUTHLESS IN EACH DESPERATE INSTANCE AS WE WERE STARTING OUT WE LEARNED THAT THERE ARE TWO WAYS TO GO AN EYE FOR AN EYE OR DO UNTO OTHERS WHAT YOU WOULD HAVE THEM DO UNTO YOU IN BUSINESS THE LATTER PHILOSOPHY IS FAR MORE COMMON SIMPLY BECAUSE IT MAKES THINGS WORK BETTER MR AARON WRITES FROM BELFAST MAINE 9402070061 940207 LETTERS TO THE EDITOR GOOD LONG RUNWAY YOUR JAN 7 MARKETPLACE ARTICLE CONCERNING VALUJET AIRLINES IN GEORGIA STATED THAT THE FITZGERALD AIRPORT FACILITIES CONSISTED OF A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS WHILE FITZGERALD MUNICIPAL IS CERTAINLY NO HARTFIELD OR LAGUARDIA IT IS ONE OF THE MOST UPTODATE GENERAL AVIATION AIRPORTS IN THE STATE WITH AN FAAAPPROVED ONEMILE PAVED AND LIGHTED RUNWAY USED BY CORPORATE JETS OF MANY OF OUR 40 INDUSTRIES AND THREE HUNDRED BUSINESSES WHILE WE ARE NOT SEEKING VALUJET'S SERVICE IT CERTAINLY WOULD NOT BE AN OUTRAGEOUS SUGGESTION AS YOU SEEM TO SUGGEST 9402070060 940207 TECHNOLOGY & HEALTH HEALTHCARE AND INSURANCE INDUSTRIES CONTRIBUTED GENEROUSLY TO COOPER IN '93 BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP JIM COOPER WHOSE HEALTHCARE PLAN WAS EMBRACED LAST WEEK BY THE BUSINESS ROUNDTABLE RECEIVED 35 OF HIS IDENTIFIABLE CAMPAIGN CONTRIBUTIONS FROM THE HEALTHCARE INDUSTRY IN THE SECOND HALF OF 1993 ACCORDING TO AN ANALYSIS BY CITIZEN ACTION CITIZEN ACTION A CONSUMER GROUP THAT OPPOSES THE COOPER PLAN AND IS PUSHING FOR A CANADIANSTYLE SINGLEPAYER HEALTH SYSTEM FOUND THAT OF THE 554000 REP COOPER RAISED FROM LARGE INDIVIDUAL DONORS DURING THE LAST SIX MONTHS OF THE YEAR 196600 CAME FROM PEOPLE ASSOCIATED WITH THE HEALTH AND INSURANCE INDUSTRIES FOR ALL OF 1993 THE GROUP FOUND 27 OF THE 13 MILLION REP COOPER RAISED FROM LARGE DONORS WAS CONTRIBUTED BY PEOPLE IN THOSE INDUSTRIES CAMPAIGN RECORDS ARE REQUIRED TO IDENTIFY ONLY THOSE PEOPLE WHO GIVE MORE THAN 200 TO A CANDIDATE REP COOPER A TENNESSEE DEMOCRAT WHO IS RUNNING FOR THE SENATE THIS YEAR DOESN'T TAKE MONEY FROM POLITICALACTION COMMITTEES REP COOPER HAS TAKEN A HOLIERTHANTHOU POSITION WITH REGARD TO CAMPAIGN FINANCING ASSERTED CITIZEN ACTION'S MICHAEL PODHORZER YET WITHOUT TAKING A PENNY FROM PACS COOPER HAS MANAGED TO RAISE MORE MONEY FROM HEALTH AND INSURANCE INTERESTS THAN ANY OTHER MEMBER OF THE HOUSE NONETHELESS VIRTUALLY EVERY LAWMAKER WITH A PROMINENT ROLE IN THE HEALTHCARE DEBATE IS BEING SHOWERED WITH MONEY THESE DAYS FOR EXAMPLE REP FORTNEY STARK D CALIF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE CHAIRMAN WHO IS SYMPATHETIC TO SINGLEPAYER ADVOCATES RECEIVED MOST OF HIS LARGEDONOR CONTRIBUTIONS IN THE SECOND HALF OF 1993 FROM DOCTORS AND OTHERS ASSOCIATED WITH THE HEALTH INDUSTRY ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS IN ADDITION HEALTH PACS GAVE HIM TENS OF THOUSANDS OF DOLLARS IN CONTRIBUTIONS LAST YEAR MEANWHILE NEARLY A THIRD OF THE PAC MONEY SENT TO SEN JOHN CHAFEE THE RHODE ISLAND REPUBLICAN WHO HAS PUT OUT ANOTHER HEALTHCARE PLAN CAME FROM THE MEDICAL AND INSURANCE INDUSTRIES DURING THE LATTER HALF OF LAST YEAR FEC RECORDS SHOW REP COOPER CRITICIZED CITIZEN ACTION FOR ATTACKING ME PERSONALLY RATHER THAN DEBATING ME ON THE MERITS OF THE BILL THE CONGRESSMAN NOTED THAT HE HAS BEEN RUNNING FOR THE SENATE FOR AN ENTIRE YEAR AND HAS RAISED LARGE SUMS FROM PEOPLE IN A VARIETY OF BUSINESSES HE SAID HE WAS CAMPAIGNING WITH ONE HAND TIED BEHIND MY BACK BY NOT ACCEPTING PAC MONEY I'VE PROBABLY TURNED DOWN 2 MILLION OF EASY HEALTHCARE MONEY THAT VIRTUALLY ANY OF MY COLLEAGUES IS WILLING TO ACCEPT UPON FILING HIS CAMPAIGNFINANCE REPORT LAST MONTH REP COOPER ALSO SAID THAT THREEQUARTERS OF HIS RECEIPTS HAVE COME FROM INDIVIDUALS IN HIS HOME STATE RAISING MONEY PRIMARILY FROM TENNESSEANS RATHER THAN PROFESSIONAL SPECIALINTEREST GROUPS IS A BETTER WAY TO FINANCE A CAMPAIGN THE CONGRESSMAN SAID BUT CITIZEN ACTION SAID THAT 21 PEOPLE ASSOCIATED WITH PACIFICARE HEALTH SYSTEMS INC A CYPRESS CALIF HEALTHMAINTENANCE ORGANIZATION GAVE 13500 TO REP COOPER CONTRIBUTORS CONNECTED WITH FIVE OTHER COMPANIES INCLUDING NASHVILLE HOSPITAL CHAINS HEALTHTRUST INC AND HCAHOSPITAL CORP OF AMERICA ALSO SENT REP COOPER AT LEAST 10000 DURING 1993 REP COOPER'S HEALTHCARE PROPOSAL WHICH ENJOYS STRONG BIPARTISAN SUPPORT HAS GAINED CONSIDERABLE ATTENTION OF LATE THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVES OF AMERICA'S LARGEST CORPORATIONS VOTED LAST WEEK TO BACK A BILL AUTHORED BY REP COOPER AND SEN JOHN BREAUX D LA AS A GOOD STARTING POINT FOR HEALTHCARE REFORM 9402070059 940207 INFORMATION RESOURCES CUTS NET OUTLOOK FACES THE LOSS OF BRISTOLMYERS ACCOUNT BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL INFORMATION RESOURCES INC WHICH STUNNED INVESTORS BY ANNOUNCING THAT IT WILL REPORT FOURTHQUARTER EARNINGS HALF OF WHAT WAS ANTICIPATED HAS LOST A MAJOR ACCOUNT BRISTOLMYERS SQUIBB CO A CLIENT OF THE CHICAGOBASED MARKETING RESEARCH COMPANY SINCE 1991 IS EXPECTED TO MOVE ITS BUSINESS BACK TO THE AC NIELSEN UNIT OF DUN & BRADSTREET CORP AN ANNOUNCEMENT OF THE SWITCH AS WELL AS POSSIBLY ANOTHER ACCOUNT DEFECTION TO IRI'S ARCHRIVAL COULD COME WITHIN DAYS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION IRI LAST LOST A MAJOR CLIENT THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS IN 1992 AFTER IRI SAID ON FRIDAY THAT EARNINGS WOULD BE LOWER THAN EXPECTED ITS SHARES FELL 8875 OR 24 TO 2875 IN NASDAQ STOCK MARKET TRADING THE COMPANY SAID IT WOULD REPORT PERSHARE FOURTHQUARTER PROFIT OF BETWEEN 15 CENTS AND 17 CENTS RATHER THAN THE 32 CENTS TO 34 CENTS WALL STREET HAD PREDICTED FOR THE FULL YEAR IRI SAID IT NOW EXPECTS TO REPORT PERSHARE EARNINGS OF BETWEEN 88 CENTS AND 90 CENTS AGAINST A CONSENSUS FORECAST OF 106 AND YEAREARLIER EARNINGS OF 78 CENTS THE SHORTFALL TRANSLATES TO ABOUT 42 MILLION IN NET INCOME IRI ATTRIBUTED ABOUT TWO CENTS OF THE UNREALIZED EARNINGS TO EXTRAORDINARY COSTS ASSOCIATED WITH ACQUISITIONS IRI BLAMED MOST OF THE SHORTFALL ON NEWCLIENT BUSINESS THAT HADN'T DEVELOPED LARGELY IT SAID BECAUSE OF SWAT TEAM SALESMANSHIP BY AN EXECUTIVE WHO HAD TEMPORARILY LEFT IRI FOR NIELSEN DURING HIS FOUR MONTHS AS PRESIDENT OF NIELSEN'S NORTH AMERICAN OPERATIONS GEORGE R GARRICK IS CREDITED WITH CONVINCING SEVERAL MAJOR CLIENTS TO REMAIN THERE WITH PROMISES THAT SERVICE WOULD IMPROVE HE DIDN'T HAVE TO DO THAT AT TOO MANY PLACES FOR IT TO REALLY HURT OUR REVENUE NUMBERS FOR THE QUARTER IRI CHAIRMAN GIAN M FULGONI SAID LAST NOVEMBER MR FULGONI SUCCEEDED IN WOOING MR GARRICK BACK TO IRI WHERE HE HEADS UP ITS NORTH AMERICAN BUSINESS MR FULGONI SAID THAT WALL STREET EXPECTS IRI'S INFOSCAN SCANNERDATA OPERATION TO GROW BY AT LEAST 20 A YEAR AND THAT NEW INFOSCAN CLIENTS REPRESENT HIGHMARGIN BUSINESS A COUPLE OF JOBS COULD TOTAL 2 MILLION IN PRETAX EARNINGS EASILY HE ADDED HE WOULDN'T IDENTIFY CLIENTS IRI HAD BEEN COUNTING ON OTHER THAN TO CHARACTERIZE THEM AS BLUE CHIP BUT DURING THE QUARTER SEVERAL CLIENTS RENEWED WITH IRI MR FULGONI SAID AMONG THEM HERSHEY FOODS CORP BAYER AG'S MILES LABORATORIES LAND O'LAKES INC JM SMUCKER CO AND THE CONTINENTAL BAKING GROUP OF RALSTON PURINA CO HE ALSO SAID THAT SINCE MR GARRICK HAS RETURNED IRI HAS ADDED FORMER NIELSEN CLIENT DOLE FOOD CO IN AN APPARENT EFFORT TO CUSHION THE BLOW IRI BUNDLED THE EARNINGS REVISION WITH ANNOUNCEMENTS OF ACQUISITIONS INCLUDING THAT OF SURVEY RESEARCH GROUP A HONG KONGBASED CONCERN FOR 76 MILLION IN STOCK SRG WILL GIVE IRI ENTRY INTO ASIA AS PART OF ITS EFFORTS TO MATCH NIELSEN IN GLOBAL REACH INCREASINGLY COMPANIES WANT TO TRACK CONSUMER BUYING HABITS WORLDWIDE SRG OPERATES IN CHINA HONG KONG INDONESIA MALAYSIA THE PHILIPPINES SINGAPORE TAIWAN AND THAILAND IRI WHICH OUTBID NIELSEN FOR SRG SAID THE ACQUISITION WOULD BE ANTIDILUTIVE TO ITS SHARES IRI ALSO SAID IT HAD SIGNED A LETTER OF INTENT TO BUY NEO INC A SHELTON CONN MANAGEMENT CONSULTING FIRM SPECIALIZING IN CONSUMER PACKAGED GOODS TERMS WEREN'T DISCLOSED MR FULGONI WHO INCURRED A ONEDAY PAPER LOSS FRIDAY OF ABOUT 26 MILLION ON HIS PERSONAL HOLDINGS SOUGHT TO MINIMIZE THE STOCK'S PLUNGE CALLING INVESTORS SHORTSIGHTED A 5 REVENUE SHORTFALL HERE CAUSED A 50 EARNINGS SHORTFALL THE CHAIRMAN AND COCHIEF EXECUTIVE OFFICER SAID THE COMPANY CAUTIONED WALL STREET NOT TO READ TOO MUCH INTO QUARTERTOQUARTER EARNINGS HE SAID ADDING THE VOLATILITY OF OUR EARNINGS SHOULDN'T BE USED TO INDICATE THE FUNDAMENTAL STRENGTH OF THE COMPANY INDEED SOME ANALYSTS REGARD IRI'S STOCK DECLINE AS A BUYING OPPORTUNITY I RECOMMEND PURCHASE AT THESE LEVELS BECAUSE I THINK THE FUNDAMENTALS OF THE BUSINESS ARE ACTUALLY BETTER IN LIGHT OF THE SRG ACQUISITION SAID RITA SPITZ OF WILLIAM BLAIR & CO CHICAGO MS SPITZ SAID SHE ISN'T CHANGING HER 1994 EARNINGS ESTIMATE OF 140 A SHARE WITH A RANGE OF 135 TO 145 9402070058 940207 SMALL STOCK FOCUS FERVOR GROWS IN DISCOUNT BROKER BATTLE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK QUICK & REILLY INC THE QUIET MEMBER OF THE DISCOUNT BROKERAGE INDUSTRY'S BIG THREE WANTS TO MAKE SOME NOISE AND FIGURES CALIFORNIA THE BACK YARD OF MARKET LEADER CHARLES SCHWAB & CO IS THE PLACE TO DO IT QUICK & REILLY LAST MONTH HIRED AWAY ONE OF SCHWAB'S TOP EXECUTIVES MARK BRANDIN 43 YEARS OLD TO DIRECT AN INTENSIFIED MARKETING CAMPAIGN MR BRANDIN AT ONE TIME SCHWAB'S CHIEF MARKETING EXECUTIVE IS ALREADY MAKING PLANS TO BOOST QUICK & REILLY'S PROFILE WITH A STEPPEDUP TELEVISION ADVERTISING CAMPAIGN AND LARGER ADS IN PRINT MOST RECENTLY HE WAS EXECUTIVE VICE PRESIDENT CAPITAL MARKETS/TRADING AT SAN FRANCISCOBASED SCHWAB MR BRANDIN'S SPECIFIC PLANS INCLUDE EMPHASIZING THE COMPANY'S SATISFACTION GUARANTEE DISMISSED BY CRITICS AS A GIMMICK WHEN IT WAS UNVEILED IN MARCH 1992 THE GUARANTEE ALLOWS QUICK & REILLY CUSTOMERS TO GET THEIR COMMISSION FEES BACK IF THEY ARE UNHAPPY WITH SERVICES RECEIVED ON A TRADE THE GUARANTEE DOESN'T APPLY TO DECLINES IN STOCK PRICES THE COMPANY SAYS 001 OF TRADES HAVE LED TO A REFUND REQUEST QUICK & REILLY'S NEW AGGRESSIVE TACK UNDERSCORES THE CHANGING COMPETITION FOR CUSTOMERS AMONG DISCOUNT BROKERS WHILE THE RETAIL INVESTING BOOM CONTINUES TO SURGE BECAUSE OF THE LOWINTEREST RATE ENVIRONMENT THE DISCOUNT BROKERAGE MARKETPLACE IS TIGHTENING THE BIG THREE INCLUDING FIDELITY INVESTMENTS' DISCOUNT BROKERAGE BUSINESS CONTROL MORE THAN 90 OF THE DISCOUNT MARKET LEAVING LITTLE ROOM FOR MARKETSHARE GROWTH THAT ISN'T AT THE EXPENSE OF THE OTHER TWO QUICK'S NEW APPROACH IS A NOTSOSUBTLE SHIFT IN STRATEGY SAYS MICHAEL FLANAGAN AN ANALYST WITH LIPPER ANALYTICAL SERVICES NOT ONLY GOING AFTER SCHWAB'S NICHE MORE AGGRESSIVELY BUT ALSO GEOGRAPHICALLY GOING AFTER SCHWAB INTRIGUES ME HE SUGGESTS THAT IT COULD BE A RISKY UNDERTAKING THE FULLSERVICE DISCOUNT BUSINESS IN CALIFORNIA IS DOMINATED BY SCHWAB WHILE JACK WHITE & CO DOMINATES THE DEEPDISCOUNT BUSINESS QUICK & REILLY WITH A MARKET CAPITALIZATION OF ABOUT 364 MILLION MUST TAKE THE BATTLE TO A MUCH LARGER SCHWAB WHICH HAS A MARKET CAP OF ABOUT 166 BILLION FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING QUICK & REILLY FELL 150 TO 34125 TO BUILD A HIGHER PROFILE QUICK & REILLY WILL INCREASE ITS MARKETING BUDGET 50 TO AS MUCH AS 8 MILLION A YEAR ACCORDING TO INDIVIDUALS FAMILIAR WITH THE COMPANY'S PLANS IN ADDITION THE COMPANY WILL ADD MARKETING STAFF AND PUSH MORE PRODUCTS ATTEMPTING TO DIVERSIFY AWAY FROM ITS BREADANDBUTTER TRANSACTION SERVICES MOREOVER QUICK & REILLY WANTS TO PROMOTE RECENTLY INTRODUCED NOLOAD MUTUAL FUNDS AN AREA THAT HAS BEEN DOMINATED IN THE DISCOUNT BROKERAGE ARENA BY SCHWAB AND FIDELITY WE ARE REVERSING OUR TRADITIONAL LOWPROFILE STANCE SAYS TOM QUICK PRESIDENT OF THE COMPANY'S DISCOUNT BROKERAGE BUSINESS WE WANT TO EMPHASIZE WHAT WE CAN DO FOR OUR CUSTOMERS BEYOND STOCK TRANSACTIONS AND THAT INCLUDES MUTUAL FUNDS QUICK & REILLY GROUP INC THE PARENT COMPANY ALSO OPERATES SPECIALIST AND CLEARINGHOUSE BUSINESSES IN THE PAST FEW YEARS QUICK & REILLY HAS RIDDEN THE RETAIL INVESTING BOOM TO STRONG EARNINGS AND REVENUE GROWTH THE COMPANY'S NET INCOME ROSE TO 287 MILLION FOR THE YEAR ENDED LAST FEBRUARY FROM ABOUT 10 MILLION FOR THE YEAR ENDED IN FEBRUARY 1989 OVER THAT PERIOD REVENUE ROSE TO 1959 MILLION FROM 776 MILLION SCHWAB MEANWHILE HAS WATCHED NET INCOME GROW TO 118 MILLION IN 1993 FROM 19 MILLION IN 1989 REVENUE HAS NEARLY TRIPLED TO 965 MILLION IN 1992 FROM 346 MILLION IN 1989 QUICK & REILLY'S DECISION TO LAUNCH AN AGGRESSIVE MARKETING CAMPAIGN COMES AT A TIME WHEN SCHWAB SEEMS TO HAVE STUMBLED A BIT THE COMPANY'S STOCK HAS FALLEN FROM 3150 ON JAN 12 TO 2750 SOME ANALYSTS EXPRESSED CONCERN THAT SCHWAB'S SPENDING PLANS HAVE EATEN TOO RAPIDLY INTO EARNINGS IN FACT EARNINGS BEFORE INCOME TAXES ACTUALLY DECLINED IN THE MOST RECENT QUARTER SCHWAB COUNTERS THAT TREMENDOUS GROWTH IN ASSETS UNDER MANAGEMENT FORCED THE COMPANY TO ACCELERATE CAPITAL SPENDING PROGRAMS IN 1993 SCHWAB ADDED ALMOST 30 BILLION IN ASSETS UNDER MANAGEMENT TO GIVE THE FIRM ABOUT 97 BILLION IN ASSETS UNDER MANAGEMENT AT LEAST PART OF QUICK & REILLY'S CAMPAIGN WILL BE FOUGHT OVER THE SIZE OF COMMISSIONS A BATTLEGROUND ON WHICH QUICK HOLDS AN ADVANTAGE ACCORDING TO A SURVEY BY MERCER INC A FINANCIAL SERVICES RESEARCH AND CONSULTING CONCERN TO TRADE 1000 SHARES OF A 10 STOCK SCHWAB CHARGES A COMMISSION OF 110 FIDELITY 10950 AND QUICK & REILLY 84 BUT QUICK FINDS ITSELF AT A DISADVANTAGE IN THE FIGHT TO OFFER INVESTORS MORE SERVICES BOTH SCHWAB AND FIDELITY OFFER A WIDER ARRAY OF SERVICES INCLUDING SUCH THINGS AS MORE EXTENSIVE RESEARCH AND ANALYSIS SCHWAB MADE A BIG HIT WITH ITS NO FEE MUTUAL FUND SERVICE A TACTIC THAT BOTH QUICK AND FIDELITY FOLLOWED THERE ALSO ARE TWO NEW BATTLEFIELDS LOOMING FOR ALL THREE FIRMS TECHNOLOGY AND INTERNATIONAL MARKETS ANALYSTS BELIEVE THAT TECHNOLOGY WILL PLAY AN INCREASINGLY IMPORTANT ROLE AMONG DISCOUNT BROKERAGE FIRMS AS THE INFORMATION SUPERHIGHWAY MAKES ACCESS TO INFORMATION EASIER FOR MORE PEOPLE WE HAVE MORE AND MORE CUSTOMERS SIGNING ONTO THEIR PERSONAL COMPUTERS AND PLACING TRADES THROUGH ONLINE SYSTEMS SAYS DONNA M MORRIS SENIOR VICE PRESIDENT AT FIDELITY AND AS CUSTOMERS BECOME MORE EDUCATED AND MORE ACCUSTOMED TO USING COMPUTERS WE EXPECT GROWING DEMAND FOR ONLINE PRODUCTS CURRENTLY ALL THREE BROKERAGE FIRMS OFFER ONLINE TRADING AND SERVICES AND 24HOUR TOUCHTONE ACCESS TO ACCOUNT AND STOCK INFORMATION INTERNATIONALLY GROWING INTEREST IN DISCOUNTBROKERAGE OPERATIONS HAS DRAWN SCHWAB AND FIDELITY TO LONDON QUICK & REILLY HOWEVER HAS YET TO OPEN AN OFFICE OVERSEAS SCHWAB IS CURRENTLY DOMINANT BUT FIDELITY IS A MAJOR FACTOR SAYS MR FLANAGAN QUICK & REILLY IS ANOTHER PLAYER NOT YET WITH THE SAME SIZE OR PRESENCE I DO BELIEVE THEY ARE AN EFFICIENT LOWCOST PROCESSOR OF TRADES BUT IN THIS MARKET SIZE IS VERY IMPORTANT IN CHALLENGING FOR SUPREMACY THE ANNOUNCEMENT BY THE FEDERAL RESERVE BOARD TIGHTENING ITS MONETARY POLICY SENT SMALLCOMPANY STOCK BUYERS SCURRYING FOR COVER AS PRICES SLID SHARPLY THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES FINISHED WITH A SHARP DEFICIT OF 590 OR 221 TO 26167 ON NASDAQ THE COMPOSITE INDEX TUMBLED 2051 OR 257 TO 77728 THE COMPOSITE'S LOSS WAS ITS SIXTHBIGGEST EVER ON A POINT BASIS OBSERVERS AGREED THAT THE FED'S MOVE WASN'T UNEXPECTED BUT DID COME SOONER THAN ANTICIPATED NASDAQ DECLINERS BATTERED ADVANCERS 2443 TO 807 ON NASDAQ NATIONAL MARKET VOLUME OF 321303400 SHARES UP FROM 278326200 THURSDAY NASDAQ TOTAL VOLUME WAS ITS FOURTHHIGHEST ONEDAY TURNOVER EVER AT 375078800 SHARES COMPARED WITH 331623100 THURSDAY MOST GROUPS WERE BADLY BRUISED AND INTERESTRATE SENSITIVE STOCKS WERE NO EXCEPTION PROVIDENT BANCORP CINCINNATI FELL 1 TO 30 MID ATLANTIC MEDICAL SERVICES A HEALTHMAINTENANCE ORGANIZATION DROPPED 1 1/8 TO 27 3/4 AND CENTERBANK OF WATERBURY CONN LOST 7/8 TO 11 1/2 PHOENIX LASER SYSTEMS PLUNGED 1 1/2 OR 40 TO 2 1/4 ON THE AMERICAN STOCK EXCHANGE THE COMPANY SAID AN INVOLUNTARYBANKRUPTCY PROCEEDING FILED AGAINST IT BY TWO FORMER EMPLOYEES AND MICRODYNE WON'T AFFECT A PRIVATE PLACEMENT AGREEMENT SIGNED RECENTLY WITH FUJIAN ENTERPRISES HOLDINGS MICRODYNE A DESIGNER OF SATELLITE EARTH STATION COMPONENTS ADDED 1/8 TO 5 3/8 IN EARNINGS NEWS RALSTONCONTINENTAL BAKING GROUP DECLINED 1 3/4 TO 7 3/4 ON THE NEW YORK STOCK EXCHANGE AFTER REPORTING A FISCAL FIRSTQUARTER LOSS OF ONE CENT A SHARE AFTER THE CLOSE THURSDAY IN THE YEAREARLIER PERIOD THE COMPANY HAD PRO FORMA NET INCOME OF EIGHT CENTS IN ADDITION GOLDMAN SACHS & CO CUT ITS RATING ON RALSTONCONTINENTAL BAKING TO MARKET PERFORMER FROM MODERATE OUTPERFORMER CITING UNEXCITING FUNDAMENTALS SOUTHERN ELECTRONICS A DISTRIBUTOR OF PERSONAL COMPUTERS FELL 1 1/4 TO 10 3/4 THE COMPANY SAID ITS FISCAL SECONDQUARTER EARNINGS FELL TO 22 CENTS A SHARE FROM 29 CENTS A YEAR EARLIER ON THE POSITIVE SIDE CORIMON JUMPED 2 7/8 TO 21 5/8 ON THE BIG BOARD INVESTORS ENTHUSIASTIC ABOUT THE TENOR OF ECONOMIC REFORM ANNOUNCED BY VENEZUELA'S NEW PRESIDENT SENT THE BUILDING MATERIALS COMPANY'S AMERICAN DEPOSITARY RECEIPTS HIGHER ON THE NEWISSUES FRONT RENAISSANCE COMMUNICATIONS JUMPED TO 20 1/4 FROM ITS OFFERING PRICE OF 19 LATE THURSDAY THE OPERATOR OF A GROUP OF TELEVISION STATIONS AFFILIATED WITH THE FOX BROADCASTING NETWORK PLANS TO USE PROCEEDS TO REDEEM OUTSTANDING SERIES B EXCHANGEABLE PREFERRED STOCK AND TO REPAY SENIOR DEBT ALANTEC CLOSED AT 14 7/8 ABOVE ITS OFFERING PRICE FRIDAY OF 13 THE COMPANY WHICH DESIGNS DEVELOPS MAKES MARKETS AND SUPPORTS INTELLIGENT SWITCHING HUBS FOR ETHERNET AND FDDI LOCAL AREA NETWORKS EXPECTS TO USE PROCEEDS FOR GENERAL CORPORATE PURPOSES CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE MICRODYNE CORP ALEXANDRIA VA A MAKER OF COMPUTER HARDWARE AND SOFTWARE ISN'T INVOLVED IN A LAWSUIT AGAINST PHOENIX LASER SYSTEMS INC YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY IDENTIFIED THE PUBLICLY TRADED COMPANY AS BEING INVOLVED IN THE SUIT PHOENIX LASER SYSTEMS SAID CLOSELY HELD MICRODYNE INC ESCONDIDO CALIF IS THE COMPANY INVOLVED IN THE SUIT 9402070057 940207 BUSINESS BRIEF ORANGE & ROCKLAND UTILITIES INC CUSTOMERS TO GET CREDITS FOR IMPROPERLY SPENT FUNDS ORANGE & ROCKLAND UTILITIES INC PEARL RIVER NY SAID IT WOULD PAY 439096 TO CUSTOMERS IN NEW YORK AND NEW JERSEY TO ACCOUNT FOR IMPROPERLY SPENT FUNDS THE REFUND PAYMENTS STEM FROM THE MISAPPROPRIATION OF FUNDS BY A ONETIME ORANGE & ROCKLAND UTILITIES EXECUTIVE LINDA WINIKOW MS WINIKOW FORMERLY VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS HAS PLEADED GUILTY IN ROCKLAND COUNTY DISTRICT COURT TO MAKING ILLEGAL CAMPAIGN CONTRIBUTIONS AS WELL AS GRAND LARCENY AND COMMERCIAL BRIBE RECEIVING HER SENTENCING IS SCHEDULED FOR EARLY APRIL THE UTILITY SAID NEW YORK ELECTRIC CUSTOMERS WHO USE ABOUT 500 KILOWATT HOURS A MONTH GOT ABOUT 37 CENTS CREDIT FOR NOVEMBER AND DECEMBER AND WILL GET AN ADDITIONAL 185 CENTS CREDIT IN JANUARY GAS CUSTOMERS RECEIVED ABOUT 40 CENTS CREDIT FOR NOVEMBER AND DECEMBER AND WILL RECEIVE AN ADDITIONAL 20 CENTS IN CREDIT NEW JERSEY ELECTRIC CUSTOMERS WILL RECEIVE ABOUT 45 CENTS CREDIT OVER A TWOMONTH PERIOD BEGINNING FEB 3 NEW YORK STATE REGULATORS CONTINUE TO INVESTIGATE ORANGE & ROCKLAND THE UTILITY SAID IT IS ACTIVELY COOPERATING WITH THE INVESTIGATION NEW JERSEY REGULATORS ARE LOOKING INTO THE COMPANY AS PART OF A PREVIOUSLY PLANNED MANAGEMENT AUDIT 9402070056 940207 BUSINESS BRIEF SNAPPLE BEVERAGE CORP MAJORITY HOLDER TO ACQUIRE MIDWEST BOTTLER DISTRIBUTOR THOMAS J LEE CO A BOSTON INVESTMENT FIRM THAT HOLDS A 475 STAKE IN SNAPPLE BEVERAGE CORP SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE A CLOSELY HELD BOTTLER AND DISTRIBUTOR FOR ABOUT 32 MILLION MAJORITY HOLDERS OF KBG HOLDINGS INC THE PARENT OF KEMMERER BOTTLING GROUP INC DARIEN ILL SIGNED THE NONBINDING LETTER TO SELL THEIR EQUITY INTEREST TO THOMAS H LEE AS PART OF THE PROPOSED TRANSACTION SNAPPLE WOULD ACQUIRE A 20 STAKE IN KBG HOLDINGS KEMMERER IS AN INDEPENDENT REGIONAL BOTTLER AND DISTRIBUTOR OF CARBONATED AND OTHER BEVERAGES IN THE MIDWEST WITH ANNUAL SALES OF MORE THAN 200 MILLION SNAPPLE WHICH MAKES A WIDE RANGE OF MOSTLY BOTTLED BEVERAGES HAS BEEN A HIGHFLYING STOCK SINCE THE VALLEY STREAM NY COMPANY WENT PUBLIC IN DECEMBER 1992 THE PROPOSED TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT SHAREHOLDER APPROVAL AND REGULATORY CLEARANCE 9402070055 940207 REVIEW & OUTLOOK EDITORIAL MARKET NERVES THE RECOVERY DID NOT REALLY GET GOING UNTIL RECENTLY AND A LOT OF WORKING PEOPLE ARE ONLY NOW STARTING TO SEE SOME BENEFIT CLEARLY IT IS PREMATURE AT THIS POINT FOR THE FED TO START SLOWING THE ECONOMY SEN SARBANES AND LIKEMINDED OTHERS ARE CRITICIZING THE FED'S QUARTERPOINT RISE IN THE FED FUNDS RATE AS A RESPONSE TO UNPROVEN INFLATION FEARS WE TOO WANT THE STRONG ECONOMY TO PERSIST BUT WE'RE FAIRLY CERTAIN THAT A FED THAT TIGHTENS TOO LATE AFTER THE INFLATION GOBLINS ARE LOOSE WILL RISK THE RETURN OF THE STAGFLATION DEVIL RATHER THAN FEARING THAT THIS QUARTERPOINT WAS PREMATURE INDEED WE FEAR IT MAY BE A BIT LATE GIVEN THE UNUSUAL EXPLICIT ANNOUNCEMENT OF THE TIGHTENING THE FED MAY SHARE THIS FEAR A BRISK MONETARY POLICY HAS OFFSET THE DRAG OF THE CLINTON TAX INCREASES THE ECONOMY WAS ALSO BOOSTED BY A RELAXATION OF A REGULATORY CREDIT CRUNCH AND THE SUCCESS OF NAFTA THIS COMBINATION PRODUCED ECONOMIC GROWTH AND RENEWED OPTIMISM BUT MONETARY STIMULUS CANNOT GO ON FOREVER WITHOUT STIRRING INFLATION AND AFTER ONE GOOD QUARTER THE FED FEELS A NEED TO TIGHTEN WE HOPE THAT FRIDAY'S SELLOFF IS A TEMPORARY FINANCIAL PHENOMENON BUT IF IT TURNS OUT TO PRESAGE A DOWNTURN IN THE REAL ECONOMY THE SOLUTION IS NOT TO BEAT ON THE FED TO PRINT MORE MONEY THE SOLUTION WILL BE TO REVERSE THE CLINTON TAX INCREASES 9402070054 940207 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE HIGH SCHOOLS BECAME ACCUSTOMED TO DECLINING ROLLS IN THE 1980S AS THE SMALLER BABYBUST GENERATION FOLLOWED THE LARGE BABY BOOM BUT SCHOOLS SOON WILL SEE A LONGTERM RESURGENCE OF GRADUATES AS THE BABY BOOMLET COMES OF AGE TODAY'S US HIGH SCHOOL GRADUATES WERE BORN IN THE MID1970S WHEN THE NUMBER OF BIRTHS BEGAN TO TURN UPWARD AFTER MORE THAN A DECADE OF DECLINE EIGHTEEN YEARS LATER THE BABY BOOMLET CONTINUES AND SOON WILL BOOST THE RANKS OF THOSE ATTENDING COMMENCEMENT EXERCISES AFTER DECLINING THROUGHOUT THE 1980S THE NUMBER OF HIGH SCHOOL GRADUATES WILL RISE IN 1995 ACCORDING TO THE WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION BASED IN BOULDER COLO THE NUMBER OF PUBLIC AND PRIVATE HIGH SCHOOL GRADUATES NATIONWIDE SHOULD GROW 32 BETWEEN 1992 AND 2009 THIS INCREASE WILL BE ALMOST ENTIRELY DUE TO A GROWING POPULATION OF HIGH SCHOOL SENIORS ALTHOUGH THE PROJECTIONS ALSO ASSUME THAT A SLIGHT DECLINE IN DROPOUT RATES WILL CONTINUE THE GAINS WILL BE PARTICULARLY STRONG IN RAPIDLY GROWING WESTERN STATES NEVADA IS EXPECTED TO LEAD THE NATION WITH A PROJECTED 198 GAIN IN HIGH SCHOOL GRADUATES BETWEEN 1992 AND 2009 FOLLOWED BY AN 81 INCREASE IN CALIFORNIA AND 77 IN ARIZONA MOST STATES WILL SEE MORE MODEST INCREASES IN NUMBERS OF HIGH SCHOOL GRADUATES AND DESPITE THE BABY BOOMLET A FEW STATES THAT HAVE HAD HEAVY POPULATION OUTFLOWS WILL SEE DECLINES LOUISIANA MAINE NORTH DAKOTA WEST VIRGINIA AND WYOMING THESE STATES MAY HAVE TO COMPETE WITH THEIR NEIGHBORS FOR QUALIFIED ENTRYLEVEL WORKERS AND COLLEGE STUDENTS PEOPLE WHO RELOCATE ACROSS COUNTY OR STATE LINES ARE OLDER THAN THE AVERAGE MOVER WHO MOSTLY ARE ON THE YOUNG SIDE OF THE 415 MILLION AMERICANS AGED ONE YEAR OR OLDER WHO RELOCATED BETWEEN MARCH 1991 AND MARCH 1992 64 CHOSE A HOME IN THE SAME COUNTY A NEW CENSUS BUREAU REPORT SHOWS THAT 19 WENT TO ANOTHER COUNTY IN THE SAME STATE AND 17 MOVED TO ANOTHER STATE AN ADDITIONAL 13 MILLION PEOPLE SETTLED IN THE US FROM ABROAD SEVENTEEN PERCENT OF PEOPLE WHO MOVED ACROSS COUNTY OR STATE LINES WERE AGED 45 AND OLDER COMPARED WITH 13 OF THOSE WHO MOVED WITHIN THE SAME COUNTY INTERCOUNTY MOVERS ALSO WERE BETTER EDUCATED MORE AFFLUENT AND MORE LIKELY TO BE HOMEOWNERS THAN WERE THOSE WHO DIDN'T CROSS COUNTY LINES HOWEVER THE MAJORITY OF MOVERS OVERALL ARE YOUNG AND RENT THEIR HOMES AND REFLECTING THE OVERALL POPULATION 51 OF ALL MOVERS AGED 15 OR OLDER HAD 1991 PERSONAL INCOMES BELOW 15000 YOUNGER PEOPLE AND RENTERS ARE MORE LIKELY TO MOVE IN A GIVEN YEAR PEOPLE AGED ONE TO 30 MADE UP 43 OF THE US POPULATION IN MARCH 1992 BUT THEY ACCOUNTED FOR 62 OF THOSE WHO MADE A RECENT LOCAL MOVE AND 57 OF THOSE WHO MOVED TO ANOTHER COUNTY OR STATE AND ALTHOUGH JUST 33 OF THE GENERAL POPULATION LIVED IN RENTAL HOUSING 68 OF SHORTDISTANCE AND 61 OF LONGDISTANCE MOVERS RENTED THEIR HOMES IN THESE DAYS OF DEPRECIATING HOME VALUES HOMEEQUITY LOANS APPEAL TO PEOPLE WHO WANT TO IMPROVE THE HOMES THEY ALREADY OWN IN 1993 11 OF AMERICAN HOMEOWNERS HAD LOANS SECURED BY THE HOME EQUITY THEY OWNED ACCORDING TO A STUDY CONDUCTED BY BANK ADVERTISING NEWS AND THE GALLUP ORGANIZATION NINE PERCENT OF HOMEOWNERS HAD REVOLVING LINES OF CREDIT SECURED BY HOME EQUITY BOTH SHARES HAVE FALLEN FROM 1990'S LEVELS OF 21 AND 13 RESPECTIVELY BUT GALLUP SENIOR ANALYST PHILIP DORIOT SAYS THE DOWNWARD TREND ISN'T STATISTICALLY SIGNIFICANT THOSE WITH LOANS DIFFER FROM THOSE WITH LINES OF CREDIT NORTHEASTERN HOMEOWNERS ARE ALMOST TWICE AS LIKELY AS THOSE IN THE MIDWEST TO HAVE LOANS SECURED BY HOME EQUITY 15 COMPARED WITH 9 BUT MIDWESTERNERS ARE MORE LIKELY TO HAVE A REVOLVING LINE OF CREDIT SECURED BY HOME EQUITY 11 COMPARED WITH 8 OF NORTHEASTERNERS AND SOUTHERNERS HOMEOWNERS WITH SOME COLLEGE EDUCATION OR ANNUAL INCOMES OF 40000 TO 59999 ARE MOST LIKELY TO HAVE HOMEEQUITY LOANS AT 17 THOSE WITH COLLEGE DEGREES AND INCOMES OF 60000 OR MORE ARE MOST LIKELY TO HAVE REVOLVING LINES OF CREDIT 12 AND 13 RESPECTIVELY THE MOST COMMON REASON PEOPLE GIVE FOR BORROWING AGAINST THEIR HOME'S EQUITY IS TO FIX UP THOSE HOMES TWENTYNINE PERCENT OF BORROWERS CITED HOME IMPROVEMENTS REPAIRS OR ADDITIONS FOR OBTAINING SUCH A LOAN OR LINE OF CREDIT OTHER REASONS INCLUDED ATTRACTIVELY LOW INTEREST RATES 10 STARTING OR MAINTAINING A BUSINESS 9 AND CONSOLIDATING BILLS 9 PEOPLE OFTEN CHOOSE HOMEEQUITY LOANS OVER OTHER TYPES BECAUSE THEY OFFER LOWER INTEREST RATES 29 MENTIONED THIS REASON SEVENTEEN PERCENT CITED TAX ADVANTAGES THE INTEREST PAID ON HOMEEQUITY LOANS IS TAXDEDUCTIBLE AND 15 SAID THESE LOANS ARE EASIER TO APPLY FOR AND OBTAIN ONE IN 10 AMERICAN ADULTS ENJOYS WOODWORKING AS A HOBBY FINDS A SURVEY CONDUCTED FOR AMERICAN WOODWORKER MAGAZINE BY NFO RESEARCH BEGINNERS AVERAGE THREE HOURS A WEEK ON THEIR HOBBY COMPARED WITH 14 HOURS FOR ADVANCED CRAFTSMEN FORTY PERCENT OF NOVICES HAVE THEIR OWN WORKSHOPS COMPARED WITH 79 OF THEIR MORE EXPERT COUNTERPARTS AMERICANS MADE NEARLY 19 MILLION VISITS A YEAR TO PSYCHIATRISTS IN 1989 AND 1990 SAYS A NEW REPORT FROM THE NATIONAL CENTER FOR HEALTH STATISTICS BOYS UNDER THE AGE OF 15 ARE SIGNIFICANTLY MORE LIKELY THAN GIRLS TO DO SO WHILE WOMEN AGED 65 OR OLDER ARE MORE LIKELY THAN ELDERLY MEN TO VISIT A PSYCHIATRIST 9402070053 940207 INTERNATIONAL BRIEF MIM HOLDINGS LTD METAL MINING CONCERN GETS COMMITMENT FOR FINANCING MIM HOLDINGS LTD AN AUSTRALIAN METAL MINING AND REFINING COMPANY SAID FOUR INTERNATIONAL BANKS HAVE COMMITTED TO UNDERWRITE AS MUCH AS 175 MILLION IN FINANCING TO ASSIST WITH DEVELOPMENT OF MIM'S MCARTHUR RIVER ZINCLEADSILVER MINE IN AUSTRALIA'S NORTHERN TERRITORY THE BANKS ARE WESTPAC BANKING CORP NATWEST AUSTRALIA BANK LTD A UNIT OF NATIONAL WESTMINSTER BANK PLC CREDIT LYONNAIS AUSTRALIA LTD A UNIT OF CREDIT LYONNAIS OF FRANCE AND AIDC LTD SEPARATELY MIM SAID IT SIGNED A DEFINITIVE AGREEMENT WITH INTERNATIONAL MUSTO EXPLORATIONS LTD OF CANADA TO DEVELOP JOINTLY THE BAJO DE LA ALUMBRERA GOLDCOPPER DEPOSIT IN CATAMARCA PROVINCE ARGENTINA MIM HAS AGREED TO PAY INTERNATIONAL MUSTO 130 MILLION FOR ITS 50 STAKE IN THE PROJECT 9402070052 940207 WHAT'S NEWS WORLDWIDE THE UN 'S CHIEF SOUGHT NATO BACKING FOR AIR STRIKES IN BOSNIA AS SARAJEVANS MOURNED THE DEATHS OF 68 PEOPLE KILLED IN A SHELLING ATTACK SATURDAY UN SECRETARYGENERAL BOUTROSGHALI ASKED THE WESTERN ALLIANCE TO GIVE HIM THE POWER TO ORDER NATO AIR STRIKES AGAINST ARTILLERY POSITIONS IN AND AROUND THE BOSNIAN CAPITAL A UN SPOKESMAN SAID MEANWHILE US CARGO PLANES EVACUATED VICTIMS OF THE SHELLING AT SARAJEVO'S CENTRAL MARKET IT WAS THE DEADLIEST ATTACK IN THE 22MONTH SIEGE OF THE BOSNIAN CAPITAL IN WASHINGTON PRESIDENT CLINTON CALLED THE LATEST ATTACK OUTRAGEOUS AND SAID HE HOPED THAT THE SHOCK OF THESE DEATHS MIGHT SPUR NEW PEACE OVERTURES IN BOSNIA A THIRD BUSINESS GROUP SAID IT REJECTED CLINTON'S HEALTH REFORM PLAN THE NATIONAL ASSOCIATION OF MANUFACTURERS ANNOUNCED THAT IT CAN'T SUPPORT THE PRESIDENT'S PLAN IN ITS PRESENT FORM UNTIL SATURDAY'S 5620 VOTE BY THE NAM'S BOARD THE GROUP HAD FOLLOWED A STRATEGY OF PUBLIC NEUTRALITY THE CLINTON PLAN ALSO WAS REJECTED LAST WEEK BY THE BUSINESS ROUNDTABLE AND US CHAMBER OF COMMERCE MEANWHILE ROSS PEROT SAID HIS ORGANIZATION EVENTUALLY MAY ENDORSE REP COOPER'S RIVAL PROPOSAL COOPER RECEIVED 35 OF HIS IDENTIFIABLE CAMPAIGN CONTRIBUTIONS FROM THE HEALTHCARE INDUSTRY IN THE SECOND HALF OF 1993 ACCORDING TO AN ANALYSIS BY A GROUP THAT OPPOSES HIS PLAN AN INTERNET INVESTIGATION TEAM SPOTTED WHAT MAY BE THE LARGEST COMPUTER SECURITY BREACH ON THE INTERNET AND URGED TENS OF THOUSANDS OF USERS LAST WEEK TO CHANGE THEIR PASSWORDS THE GROUP THAT PUT OUT THE WARNING SAID IT ISN'T CLEAR WHETHER THE INVADERS VANDALIZED COMPUTER SYSTEMS OR UNLEASHED VIRUSES THE CLINTON ADMINISTRATION FACES A BACKLASH FROM HIGHTECH FIRMS OVER ITS DECISION TO PROCEED WITH A PLAN TO PUSH ONE SYSTEM FOR PROTECTING TELEPHONE AND COMPUTER COMMUNICATIONS THE DECISION CAME AFTER A REVIEW OF PLANS FOR A NEW COMPUTER CHIP TO BE INCLUDED IN DEVICES THAT SCRAMBLE SOUNDS OR DATA FOUR TAX ANALYSTS AGREE THAT THE CLINTONS APPEAR TO HAVE TAKEN NEARLY 20000 IN IMPROPER INTEREST DEDUCTIONS DURING THE 1980S ON WHITEWATERRELATED LOANS A WHITE HOUSE AIDE DENIED THAT THE CLINTONS TOOK ANY IMPROPER DEDUCTIONS THE DEPUTY US ATTORNEY GENERAL VOICED COMPLAINTS ABOUT HAVING WHITE HOUSE LAWYERS SIT IN ON STAFF INTERVIEWS BY JUSTICE DEPARTMENT INVESTIGATORS FOLLOWING THE JULY SUICIDE OF VINCENT FOSTER THE WHITE HOUSE DEPUTY COUNSEL A FIGURE SKATING PANEL FOUND REASONABLE GROUNDS TO BELIEVE TONYA HARDING WAS INVOLVED IN A JAN 6 ATTACK ON RIVAL SKATER NANCY KERRIGAN THE US FIGURE SKATING ASSOCIATION ISSUED A STATEMENT SATURDAY CALLING FOR A DISCIPLINARY HEARING AGAINST HARDING BUT THE PANEL STOPPED SHORT OF OUSTING HER FROM THE US OLYMPIC TEAM A 103 POSTALRATE BOOST MAY NOT BE HIGH ENOUGH SOME POSTAL SERVICE BOARD MEMBERS APPARENTLY THINK THE RISE BACKED BY POSTMASTER GENERAL RUNYON AND APPLYING EVENLY TO ALL CLASSES OF MAIL IS THE LOWER OF TWO PROPOSED INCREASES THAT ARE TO BE PRESENTED TO THE BOARD BYRON DE LA BECKWITH WAS CONVICTED SATURDAY OF MURDERING CIVILRIGHTS LEADER MEDGAR EVERS IN 1963 BECKWITH 73 AN AVOWED WHITE SUPREMACIST HAD ESCAPED CONVICTION BY TWO ALLWHITE JURIES IN 1964 HE WAS IMMEDIATELY SENTENCED TO LIFE IN PRISON AFTER THE VERDICT BY A JACKSON MISS JURY OF EIGHT BLACKS AND FOUR WHITES VETERAN DIPLOMAT AHTISAARI WON FINLAND'S FIRST DIRECT PRESIDENTIAL ELECTION SETTING UP POTENTIAL CONFLICTS WITH THE CENTERRIGHT GOVERNMENT OF PRIME MINISTER AHO AHTISAARI LEADER OF THE SOCIAL DEMOCRATS WANTS TO EXPAND THE ROLE OF THE PRESIDENCY USUALLY CONFINED TO FOREIGN POLICY TO TACKLE THE NATION'S SEVERE ECONOMIC PROBLEMS RUSSIA'S FORMER ECONOMIC CZAR DECLARED THAT YELTSIN HASN'T CHANGED HIS ATTITUDE TOWARD MARKET REFORM IN AN INTERVIEW GAIDAR STRESSED THAT THE PRESIDENT IS THE STRONGEST POLITICAL FACTOR IN FAVOR OF REFORM IN THE COUNTRY DIED JOSEPH COTTEN 88 VETERAN ACTOR WHO FIRST GAINED NATIONAL FAME FOR HIS ROLE IN THE 1941 FILM CITIZEN KANE IN LOS ANGELES OF PNEUMONIA 9402070051 940207 THE OUTLOOK PREPARE FOR NEW DOSE OF DEFICIT MEDICINE BY DAVID WESSEL WASHINGTON WORD THAT THE BUDGET DEFICIT IS ACTUALLY DECLINING HAS UNLEASHED A WAVE OF UNJUSTIFIED EUPHORIA IN SOME QUARTERS ABOUT THE STATE OF FEDERAL FINANCES NOW THAT LAST YEAR'S TAX INCREASES AND SPENDING RESTRAINTS ARE FIRMLY IN PLACE AND A PLAN PROMISING MUCH SLOWER GROWTH IN HEALTHCARE COSTS IS IN THE PIPELINE SOME ARGUE THAT THE MESSY JOB OF REDUCING THE DEFICIT IS PRETTY MUCH DONE IF WE CONTINUE TO STICK TO THE DEFICITREDUCTION PLAN THEN WE CLEARLY HAVE SET THE DEFICIT ON A DOWNWARD TRACK BUDGET DIRECTOR LEON PANETTA SAID THE OTHER DAY IF WE CAN ENACT HEALTHCARE REFORM WE CAN CONTINUE THAT TRACK INTO THE NEXT CENTURY DON'T BET ON IT EVEN IF CONGRESS PASSES HEALTH REFORM IN SOME FASHION ANOTHER ROUND OF BROADBASED TAX INCREASES AND BENEFIT CUTS PROBABLY WILL BE NEEDED BEFORE THE DECADE ENDS TREASURY SECRETARY LLOYD BENTSEN FOR ONE SAYS SO PUBLICLY AFTER LISTENING TO MR PANETTA'S COMMENT MR BENTSEN STEPPED TO THE MICROPHONE AND SAID LET ME ADD TO THAT THAT I THINK OVER THE YEARS TO COME WE'LL BE LOOKING FOR ADDITIONAL CUTS IN THAT DEFICIT YES LAST YEAR'S LAW TOOK A SUBSTANTIAL BITE OUT OF THE DEFICIT 433 BILLION OVER FIVE YEARS IMPROVING THE LONGTERM OUTLOOK IN MARKED CONTRAST TO THE MONTHS FOLLOWING THE 1990 DEFICITREDUCTION EFFORT THERE HAVE BEEN NO UNPLEASANT SURPRISES SO FAR EXCEPT FOR THE LOS ANGELES EARTHQUAKE WHICH WILL COST THE FEDERAL GOVERNMENT ABOUT 8 BILLION MR PANETTA IS ALSO RIGHT THAT THE SOARING COST OF FEDERAL SPENDING ON HEALTH PROGRAMS FOR THE POOR AND THE OLD MEDICAID AND MEDICARE IS THE REASON THE DEFICIT WILL RISE AGAIN UNDER CURRENT POLICIES THE TOP LINE ON THE ACCOMPANYING CHART SHOWS WHAT THE CONGRESSIONAL BUDGET OFFICE PREDICTS IF THE FEDERAL GOVERNMENT FAILS TO RESTRAIN ITS HEALTHCARE SPENDING THE BOTTOM LINE SHOWS WHAT WOULD HAPPEN IF THE GROWTH RATE OF MEDICARE AND MEDICARE SPENDING WERE HALVED AND SPENDING ON THESE PROGRAMS GREW AT THE SAME PACE AS EVERYTHING ELSE IN THE FEDERAL BUDGET BUT ONLY A FEW PEOPLE PRESIDENT CLINTON'S HEALTH ADVISER IRA MAGAZINER IS ONE BELIEVE THE GOVERNMENT CAN SIMULTANEOUSLY GUARANTEE HEALTH INSURANCE TO ALL AND SAVE THE GOVERNMENT SUBSTANTIAL SUMS OVER THE NEXT FIVE OR SIX YEARS THE TOP LINE ON THE CHART MAY BE TOO PESSIMISTIC BUT THE BOTTOM LINE IS PROBABLY TOO OPTIMISTIC ENDING UP SOMEWHERE BETWEEN THE TWO LEAVES A DEFICIT STILL TOO LARGE TO IGNORE IS HEALTH CARE THE SOLUTION PART OF IT BUT NOT ALL OF IT SAYS ROBERT SHAPIRO OF THE PROGRESSIVE POLICY INSTITUTE A CENTRIST DEMOCRATIC THINK TANK MY JUDGMENT SAYS ECONOMIST CHARLES SCHULTZE OF THE BROOKINGS INSTITUTION IS THAT NOTHING THAT CAN REASONABLY BE DONE IN THE WAY OF HEALTHCARE REFORM EVEN IF SUCCESSFUL IN THE LONG RUN IS GOING TO CONTROL THE GROWING COST OF MEDICAL CARE SUFFICIENTLY TO GIVE US A DESIRABLE BUDGETARY PICTURE AROUND THE TURN OF THE CENTURY MR MAGAZINER IS IMPATIENT WITH THIS VIEW ARGUING THAT THERE IS SO MUCH WASTE IN THE US HEALTHCARE SYSTEM THAT THERE MUST BE ROOM TO SAVE BIG BUCKS BUT EVEN IF CONGRESS TACKLES THE HEALTHCARE ISSUE THIS YEAR IT COULD TAKE A DECADE BEFORE ANYONE KNOWS WHETHER CONGRESS IS SUCCESSFULLY CONTROLLING FEDERAL HEALTH SPENDING MEANWHILE THE DEFICIT COULD START TO WIDEN AGAIN IT WON'T PROVOKE A CATASTROPHIC STOCKMARKET CRASH OR A SUDDEN RECESSION BUT IT WILL CONTINUE TO ERODE THE PROSPECTS FOR THE FUTURE A BIG AND IT'S STILL BIG GOVERNMENT DEFICIT SHOWS THAT THE NATION CONTINUES TO SPEND TOO MUCH FOR TODAY AND TO SET ASIDE TOO LITTLE FOR TOMORROW THERE IS ANOTHER REASON TO ACT SOON MAKING ECONOMIC PREDICTIONS BEYOND 2004 IS GENERALLY FOOLISH BUT ONE SURE FACT IS THAT THE BABY BOOMERS THE OLDEST OF WHOM TURN 48 THIS YEAR WILL BE CLOSER TO RETIREMENT AT THAT TIME AND THE CLOSER THE BABY BOOMERS ARE TO RETIRING THE HARDER IT WILL BE FOR POLITICIANS TO MAKE THE CHANGES IN SOCIAL SECURITY AND MEDICARE THAT MOST ECONOMISTS THINK ARE NEEDED TO PREVENT ENORMOUS DEFICITS OR HUGE TAX INCREASES IN THE FUTURE THE BABY BOOMERS WILL GET WHATEVER RETIREMENT BENEFITS HAVE BEEN PROMISED WE WILL BE POLITICALLY POWERFUL ENOUGH TO ENSURE THAT SAYS DEBORAH STEELMAN A REPUBLICAN BABY BOOMER WHO HEADED A COMMISSION THAT EXAMINED ALL THIS IN 1991 WE WILL HURT THE GENERATIONS BEHIND US THE LAW ALREADY PROVIDES THAT THE SOCIAL SECURITY RETIREMENT AGE IS TO CLIMB GRADUALLY FROM 65 TO 66 IN 2009 AND 67 IN 2027 WITH PEOPLE LIVING LONGER AND LONGER MR BENTSEN HAS SAID IT IS TIME TO THINK ABOUT ACCELERATING THAT TIMETABLE OR RAISING THE AGE FURTHER OTHERS SUGGEST MAKING THE ELDERLY PAY MORE OF THE MEDICARE TAB OR TRIMMING OR TAXING BENEFITS PAID TO THE RELATIVELY WELLOFF OR IMPOSING NEW BROADBASED TAXES NOW NONE OF THIS WILL BE MENTIONED IN THE BUDGET MR CLINTON UNVEILS TODAY ENACT MY HEALTHCARE PLAN HE WILL SAY AND WE CAN SLAY THE DEFICIT DRAGON BUT A HARD LOOK AT THE UNDERLYING TRENDS SUGGESTS OTHERWISE 9402070050 940207 BUSINESS BRIEF WESTWOOD ONE INC CONCERN BUYS RADIO BUSINESS FROM INFINITY FOR 25 STAKE WESTWOOD ONE INC CULVER CITY CALIF SAID IT COMPLETED ITS 1013 MILLION PURCHASE OF THE RADIONETWORK BUSINESS OF INFINITY BROADCASTING CORP'S UNISTAR RADIO NETWORKS INC IN A TRANSACTION GIVING NEW YORKBASED INFINITY A 25 STAKE IN WESTWOOD ONE AS EXPECTED INFINITY WILL MANAGE WESTWOOD ONE WITH MEL KARMAZIN INFINITY'S CHIEF EXECUTIVE OFFICER SUCCEEDING NORMAN PATTIZ AS WESTWOOD ONE'S CHIEF EXECUTIVE OFFICER MR PATTIZ REMAINS WESTWOOD ONE CHAIRMAN WESTWOOD ONE OPERATES THE MUTUAL BROADCASTING SYSTEM THE NBC RADIO NETWORK AND OTHER RADIO NETWORKS WHILE INFINITY OWNS 22 STATIONS IN THE NATION'S LARGEST RADIO MARKETS 9402070049 940207 TAX EXPERTS BELIEVE CLINTONS LIKELY TOOK IMPROPER DEDUCTIONS ANALYSIS CONCLUDES THAT IRS WOULD PROBABLY CHALLENGE ACTIONS ON WHITEWATER BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOUR TAX EXPERTS AGREE THAT BILL AND HILLARY RODHAM CLINTON APPEAR TO HAVE TAKEN NEARLY 20000 IN IMPROPER INTEREST DEDUCTIONS DURING THE 1980S ON LOANS RELATED TO WHITEWATER DEVELOPMENT CO AFTER ANALYZING THE CLINTONS' INCOMETAX RETURNS AND OTHER FINANCIAL DOCUMENTS THE TAX EXPERTS CONCUR THAT THE INTERNAL REVENUE SERVICE COULD PROBABLY CHALLENGE THE CLINTONS' PERSONAL TAX DEDUCTIONS FOR 19598 IN INTEREST PAID ON CORPORATE LOANS THAT THE WHITE HOUSE ACKNOWLEDGES WERE WHITEWATER LIABILITIES BY ONE EXPERT'S CALCULATIONS THE DEDUCTIONS REDUCED THE CLINTONS' TAXES BY MORE THAN 8700 IN ADDITION THE EXPERTS SAY IRS AUDITORS COULD PROBABLY OBJECT TO A 1275 DEDUCTION THAT THE CLINTONS TOOK ON THEIR 1988 RETURNS FOR PAYING WHITEWATER'S REALESTATE TAXES BRUCE LINDSEY A SENIOR WHITE HOUSE OFFICIAL ANGRILY DENIED THAT THE CLINTONS HAD TAKEN ANY IMPROPER DEDUCTIONS HE ARGUED THAT THE CLINTONS HAVE DOCUMENTATION TO SHOW THAT THEY WERE ENTITLED TO ALL THE DEDUCTIONS IN QUESTION THE WALL STREET JOURNAL HAD STEVEN BANKLER A CERTIFIED PUBLIC ACCOUNTANT FROM SAN ANTONIO TEXAS ANALYZE THE CLINTONS' TAX RETURNS FROM 1980 THROUGH 1992 TO ASSESS HOW THEY TREATED TAX ISSUES ARISING FROM THEIR WHITEWATER INVESTMENT A GROUP OF FOUR OTHER TAX EXPERTS A FORMER SENIOR IRS EXECUTIVE A PARTNER IN A MAJOR ACCOUNTING FIRM A SENIOR TAX MANAGER WITH A BIG SIX ACCOUNTING FIRM AND MICHAEL GALLAGHER A GEORGE WASHINGTON UNIVERSITY PROFESSOR OF ACCOUNTANCY WERE SOUNDED OUT ON MR BANKLER'S ANALYSIS ONLY THE SENIOR TAX MANAGER COULD CONCEIVE OF A TAX APPROACH THAT MIGHT ALLOW THE CLINTONS TO CLAIM THE DEDUCTIONS IN QUESTION HE SAYS HE WOULDN'T LIKE TO DEFEND THAT APPROACH TO IRS AUDITORS OF THOSE PARTICIPATING IN THE JOURNAL'S ANALYSIS MESSRS BANKLER AND GALLAGER WERE THE ONLY ONES WILLING TO BE IDENTIFIED QUESTIONS HAVE ARISEN IN RECENT WEEKS ABOUT THE CLINTONS' INTEREST DEDUCTIONS AND AS A RESULT THE JOURNAL ASKED FOR A THOROUGH ANALYSIS THE JOURNAL INQUIRY FOCUSED ON THE 1980S TIME MAGAZINE IS REPORTING IN THIS WEEK'S EDITION THAT QUESTIONABLE INTEREST DEDUCTIONS REDUCED THE CLINTONS' TAX LIABILITY BY AS MUCH AS 11000 IN 1978 1979 AND 1980 THE CLINTONS HAVE ACKNOWLEDGED TAKING ABOUT 40000 IN WHITEWATERRELATED INTEREST DEDUCTIONS WHICH THE WHITE HOUSE HAS SAID MADE UP PART OF THE CLINTONS' TOTAL LOSS OF 68900 ON WHITEWATER A REALESTATE VENTURE THEY UNDERTOOK IN 1978 WITH JAMES MCDOUGAL OWNER OF NOWDEFUNCT MADISON GUARANTY SAVINGS & LOAN IN LITTLE ROCK ARK ROBERT FISKE THE NEWLY APPOINTED SPECIAL COUNSEL IS INVESTIGATING AMONG OTHER THINGS WHETHER MADISON GUARANTY FUNDS WERE ILLEGALLY DIVERTED INTO THE WHITEWATER ESTATES DEVELOPMENT OR INTO THE CAMPAIGN COFFERS OF THENGOV CLINTON OR OTHER POLITICIANS WHERE MR LINDSEY AND THE TAX EXPERTS DISAGREE IS ON THE CRUCIAL QUESTION OF WHETHER THE CLINTONS WERE ENTITLED TO DEDUCT INTEREST PAYENTS ON WHITEWATERRELATED LOANS THAT WERE IN THEIR NAMES BUT BY ALL APPEARANCES HAD BEEN ASSUMED BY WHITEWATER IN AUGUST 1978 THE CLINTONS AND THE MCDOUGALS BOUGHT 230 ACRES ON THE WHITE RIVER FOR 203000 THEY FINANCED THE PURCHASE WITH A 20000 DOWN PAYMENT FROM UNION NATIONAL BANK OF LITTLE ROCK AND A 183000 MORTGAGE FROM CITIZENS BANK OF FLIPPIN ARK THE FIRST LOAN WAS IN THE NAMES OF MESSRS CLINTON AND MCDOUGAL AND THE SECOND IN THE NAMES OF BOTH COUPLES IN JUNE 1979 THEY FORMED WHITEWATER AND TRANSFERRED THE LAND TO THE CORPORATION FOUR YEARS LATER MR CLINTON BORROWED 20800 FROM SECURITY BANK OF PARAGOULD ARK TO PAY OFF A HIGHINTEREST 30000 NOTE THAT HIS WIFE HAD OBTAINED FROM A MCDOUGALOWNED BANK TO PUT A MODEL HOME ON A LOT IN WHITEWATER ESTATES BOTH NOTES WERE CONSIDERED WHITEWATER LIABILITIES ACCORDING TO MR LINDSEY THE 1979 LAND TRANSFER WAS SUBJECT TO THE EXISTING MORTGAGE WHICH MEANS THAT THE CLINTONS COULD DEDUCT WHITEWATER INTEREST PAYMENTS ON THEIR PERSONAL TAX RETURNS BUT ONLY IF THEY ALSO LISTED AS INCOME WHATEVER INTEREST WHITEWATER PAID ON THE LOANS THE LOANS WERE DESIGNED IN A WAY THAT THE CLINTONS WOULD HAVE NO NET INCREASE OR DECREASE IN THEIR TAXABLE INCOME IF WHITEWATER WERE MAKING ITS PAYMENTS ON TIME ALL BUT ONE OF THE EXPERTS AGREE WITH MR BANKLER THAT THE CLINTONS ERRED IN FAILING TO REPORT ANY INTEREST INCOME FROM WHITEWATER DURING THE YEARS THAT WHITEWATER WAS MAKING THE PAYMENTS ON THE NOTES THE JOURNAL'S ANALYSIS ASSUMES THAT ALL THE DEDUCTIONS LISTED ON THE CLINTON'S TAX RETURNS WERE ACCURATE HOWEVER MR MCDOUGAL TOLD TIME THAT THE ONLY MONEY THE CLINTONS EVER CONTRIBUTED TO WHITEWATER WAS 13350 IN INTEREST PAID IN 1980 THE WHITE HOUSE DENIES THIS ALLEGATION UNDER THE ORIGINAL FINANCIAL PLAN FOR WHITEWATER THE CLINTONS AND MCDOUGALS WERE TO BORROW MONEY FOR THE CORPORATION AND RELOAN IT TO WHITEWATER THE CORPORATION WAS TO PAY THEM BACK WITH INTEREST AND THEY IN TURN WERE TO PAY THE BANKS HAD THE PARTNERS ADHERED TO THE FORM OF THAT PLAN THE CLINTONS' TAX RETURNS WOULD SHOW INTEREST INCOME FROM WHITEWATER AND INTEREST EXPENSE PAID TO THE BANKS THE NET RESULT INCOME INTEREST WOULD CANCEL OUT INTEREST EXPENSE WHERE THE CLINTONS ERRED THE TAX EXPERTS CONCUR IS THEY NEVER FOLLOWED THE FORM OF THE WHITEWATER FINANCIAL PLAN INSTEAD WHITEWATER PAID THE BANKS DIRECTLY WITHOUT THE CLINTONS OR MCDOUGALS ACTING AS FINANCIAL INTERMEDIARIES FOR SEVERAL YEARS IN SO DOING UNDER CASE LAW WHITEWATER EFFECTIVELY ASSUMED THE LOANS AND ECLIPSED THE CLINTONS AS THE PRIMARY BORROWER ON THE LOANS THE CLINTONS EVEN THOUGH THEY WERE STILL GUARANTORS OF THE LOANS AND MADE SOME PAYMENTS COULDN'T CLAIM ANY DEDUCTIONS FOR INTEREST THAT THEY PAID FOR WHITEWATER ACCORDING TO THE EXPERTS IT'S LIKE A FATHER HELPING HIS SON ON HOMELOAN PAYMENTS FOR A COUPLE OF MONTHS SAYS MR BANKLER JUST BECAUSE HE MAKES THE PAYMENTS HE CAN'T TAKE THE INTEREST DEDUCTION TO BUTTRESS HIS ARGUMENT MR BANKLER CITES AN ENORMOUS BODY OF CASE LAW DATING FROM A 1935 SUPREME COURT DECISION IN THE LANDMARK GREGORY VS HELVERING CASE WHICH ASSERTS THAT THE SUBSTANCE OF TRANSACTIONS TAKES PRECEDENCE OVER THE FORM MR LINDSEY CONTENDS THAT EVEN THOUGH WHITEWATER MADE PAYMENTS TO BANKS IT DOESN'T CHANGE THE NATURE OF TRANSACTIONS HE INSISTS THAT WHITEWATER DIDN'T ASSUME THE LOANS FROM THE CITIZENS UNION AND SECURITY BANKS THERE WAS NO ASSUMPTION HE SAYS THERE IS NO EVIDENCE THAT WHITEWATER WAS THE PRIMARY OBLIGATOR ON THOSE LOANS MR LINDSEY ALSO DISMISSES THE ARGUMENT THAT THE FIRST COUPLE ERRED IN NOT FOLLOWING THE FORM OF THE WHITEWATER FINANCIAL SETUP MR GALLAGHER THE PROFESSOR OF ACCOUNTANCY WHO SPECIALIZES IN TAXES AGREES WITH MR BANKLER THAT THE CLINTONS WOULD FACE AN UPHILL FIGHT ARGUING AGAINST THE CUSTOMARY IRS POSITION THAT SUBSTANCE CONTROLS FORM MR GALLAGHER CITES THE AUTHORITATIVE TEXTBOOK FUNDAMENTALS OF CORPORATE TAXATION CASES AND MATERIALS AS SAYING THAT THE COURTS LONG HAVE BEEN WILLING TO SET ASIDE THE FORMAL DOCUMENTS SUCH AS MORTGAGES AND LEASES AND EVALUATE THE SUBSTANCE OF TRANSACTIONS THE COURTS ACCORDING TO THE TEXTBOOK ARE NOT INHIBITED FROM EXAMINING THE ARRANGEMENT AND RESTRUCTURING IT FOR TAX PURPOSES TO COMPORT WITH ECONOMIC REALITY 9402070048 940207 LETTERS TO THE EDITOR CONCERNING YOUR VIEW OF SOCIETY HORRORS FOR A DOZEN YEARS I HAVE OWNED AND OPERATED MINISTORAGES IN OUR SEMIRURAL AREA ACCORDINGLY I WAS MORE THAN ANGRY WHEN I READ THE ARTICLE CHAMBERS OF HORRORS ON JAN 5 THE ARTICLE DESCRIBED THE MANY THINGS LEFT IN SELFSTORAGE LOCKERS INCLUDING THE BODIES OF MURDER VICTIMS THE THINGS YOU HAVE DISCUSSED HAPPEN IN ANY OCCUPIED BUILDING CONDO APARTMENT HOUSE GENERAL WAREHOUSE OR INDUSTRIAL BUILDING BECAUSE GACY BURIED BODIES IN HIS BACKYARD SHOULD WE ALLOW POLICE TO INSPECT EVERY RENTAL HOUSE ABSURD LIKEWISE FOR YOUR CONCLUSIONS WE STILL EXPECT ALL BUT A VERY SMALL MINORITY OF CITIZENS TO BE LAWABIDING YOUR ARTICLE IMPLIES THE CONTRARY THAT ITSELF IS A SAD COMMENTARY ON YOUR VIEW OF OUR SOCIETY NOT JUST MINISTORAGES 9402070047 940207 ECONOMY DISPUTE ON PARTS FOR CARS STALLS TALKS ON TRADE JAPAN SAYS US ASKS QUOTA FOR DOMESTIC CONTENT OF 90 FOR TRANSPLANTS' BY BOB DAVIS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL WITH TRADE TALKS IN A STALEMATE AND A DEADLINE LOOMING FRIDAY THE US IS PRESSING JAPANESE CAR MAKERS IN THE US TO ACCEPT DOMESTICCONTENT RULES FAR TOUGHER THAN FOR ANY OTHER FOREIGN FIRMS JAPANESE NEGOTIATORS SAY THE US WANTS SOCALLED JAPANESE TRANSPLANTS TO PRODUCE CARS THAT HAVE 90 OF THEIR PARTS MADE IN NORTH AMERICA US OFFICIALS DON'T CONFIRM THAT NUMBER BUT ACKNOWLEDGE THEY WANT TOKYO TO ACCEPT LOCALCONTENT QUOTAS SUBSTANTIALLY HIGHER THAN CALLED FOR IN THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER THAT PACT CAR MAKERS LOCATED IN THE US CANADA AND MEXICO MUST PRODUCE CARS WITH 625 LOCALLY MADE PARTS WITHIN EIGHT YEARS TO QUALIFY FOR TARIFFFREE STATUS WITHIN NORTH AMERICA US OFFICIALS SAID THEY FIGURED JAPANESE CAR MAKERS WOULD REACH THE NAFTA NUMBERS OUT OF SELFINTEREST BUT THE US WANTS TO HOLD JAPANESE CAR MAKERS TO A HIGHER NUMBER TO ENSURE THAT VALUABLE PARTS OF THE CAR SUCH AS THE ENGINE OR TRANSMISSION ARE MADE IN NORTH AMERICA THE US IS ASKING JAPANESE COMPANIES TO MAKE GOOD ON WHAT THEY HAVE SAID PUBLICLY COMMERCE UNDERSECRETARY JEFFREY GARTEN TOLD THE JAPAN SOCIETY FRIDAY THAT THEY INTEND TO ACHIEVE SIGNIFICANTLY HIGHER LEVELS OF PARTS MADE IN THE UNITED STATES MR GARTEN DIDN'T NAME THE DOMESTIC CONTENT NUMBER THE US SEEKS THE JAPANESE REJECT THE US DEMAND AS UNFAIR AND CONTRARY TO INTERNATIONAL TRADE AGREEMENTS REQUIRING THAT FOREIGN COMPANIES BE TREATED THE SAME AS DOMESTIC ONES THE DISPUTE ALSO DEMONSTRATES HOW FAR APART THE TWO SIDES REMAIN ON THEIR FRAMEWORK TRADE TALKS PRIME MINISTER MORIHIRO HOSOKAWA IS TO ARRIVE IN WASHINGTON FRIDAY TO MEET PRESIDENT CLINTON AND SUPPOSEDLY WRAP UP A TRADE DEAL KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER SAID THE TALKS ARE AT AN IMPASSE OVER ONE OF THE MAIN ISSUES REFERRING TO THE US DEMAND THAT JAPAN SET NUMERICAL TARGETS SUCH AS THE DOMESTICCONTENT RULES MR MATSUURA AND A TEAM OF JAPANESE OFFICIALS WILL RESUME TALKS WITH THEIR CLINTON ADMINISTRATION COUNTERPARTS IN WASHINGTON TODAY IN ADDITION TO THE DISAGREEMENT ON MICROECONOMIC ISSUES THE JAPANESE GOVERNMENT IS ALSO MOVING SLOWLY ON ANOTHER MAJOR US DEMAND THAT TOKYO ENACT QUICK BOLD MACROECONOMIC MEASURES TO END ITS RECESSION WHICH IS DAMPING DEMAND FOR IMPORTS MR HOSOKAWA HAD PLANNED TO ANNOUNCE AN INCOME TAX CUT AND A NEW PUBLICWORKS SPENDING PACKAGE LAST WEEK BUT A BITTER FEUD WITHIN HIS COALITION GOVERNMENT OVER HOW TO PAY FOR THE STIMULUS FORCED HIM TO BACK OFF FROM HIS PLAN AND IT'S NOW UNCERTAIN WHEN THE PACKAGE WILL BE FINISHED MY HOPE IS THAT WHEN PRIME MINISTER HOSOKAWA GOES TO WASHINGTON HE WILL HAVE A NEW ECONOMIC PACKAGE IN PLACE MR MATSUURA SAID IN AN INTERVIEW FRIDAY BUT HE ACKNOWLEDGED THAT THE UNEXPECTED ECONOMIC POLICY FRACAS WAS A SETBACK MANY OTHER STEPS WE INITIALLY ENVISAGED WE SHOULD TAKE BEFORE MR HOSOKAWA LEAVES WILL BE AFFECTED MR MATSUURA SAID DEFINITELY THERE IS A FURTHER DELAY IN ACTION IN MANY AREAS MR CLINTON LAST WEEK DISPATCHED US TRADE REPRESENTATIVE MICKEY KANTOR TO TOKYO TO TRY TO PUSH THE TALKS ALONG AFTER THREE DAYS OF MEETINGS WITH MR HOSOKAWA AND OTHER TOP POLITICIANS HOWEVER MR KANTOR APPEARS TO HAVE LEFT AFTER MAKING LITTLE PROGRESS AT A NEWS CONFERENCE FRIDAY THE MAIN ADVANCE MR KANTOR COULD CITE WAS THAT THE PREMIER HAD PERSONALLY DIRECTED HIS GOVERNMENT TO REDOUBLE THEIR EFFORTS TO REACH A SUCCESSFUL CONCLUSION IN ADDITION FOREIGN MINISTER TSUTOMU HATA AGREED TO OVERSEE THE TALKS FOR THE JAPANESE SIDE THE US HAS LONG COMPLAINED THAT TOP BUREAUCRATS HAVE STALLED THE TALKS THROUGH THEIR INTRANSIGENCE BUT MR KANTOR AND HIS JAPANESE COUNTERPARTS DISAGREED EVEN ON WHAT THE TWO SIDES HAD AGREED TO LAST WEEK MR KANTOR FOR EXAMPLE SAID MR HATA NEITHER ACCEPTED NOR REJECTED THE US DEMAND FOR NUMERICAL TARGETS DURING MEETINGS THAT IMPLIES THAT MR HATA MAY BE MORE FLEXIBLE THAN THE BUREAUCRATS IN REACHING A TRADE DEAL BUT A SENIOR JAPANESE GOVERNMENT OFFICIAL INVOLVED WITH THE NEGOTIATIONS SAID IT'S NOT TRUE MR HATA CLEARLY REFUSED NUMERICAL TARGETS THE OFFICIAL ADDED IN LESSCONTENTIOUS AREAS THOUGH THE TWO SIDES APPEAR TO HAVE MOVED AHEAD JAPAN'S NEGOTIATORS INDICATED THAT CHANGES WOULD BE MADE IN THE WAY THE JAPANESE BUY MEDICAL EQUIPMENT SO THAT FOREIGN COMPANIES HAVE A BETTER CHANCE TO WIN GOVERNMENT CONTRACTS SOME US NEGOTIATORS BELIEVE THE JAPANESE STRATEGY IS TO MAKE ENOUGH CHANGES IN PROCEDURE THAT THE US WILL DROP ITS INSISTENCE ON NUMERICAL TARGETS RATHER THAN FORGO THE JAPANESE CONCESSIONS SOME JAPANESE OFFICIALS SAID MR KANTOR MAY ACTUALLY HAVE HURT THE TALKS BY TAKING A HOSTILE TONE AT MANY OF HIS MEETINGS DURING HIS VISIT MR KANTOR MADE MANY NOTTOOSUBTLE HINTS THAT THE US WOULD SLAP SANCTIONS ON JAPAN IF THE FRAMEWORK TALKS FELL THROUGH ON CAPITOL HILL MEANWHILE CALLS ARE MOUNTING FOR FURTHER PRESSURE ON THE JAPANESE IF THE FRAMEWORK TALKS FAIL THE GAP BETWEEN THE TWO SIDES WAS STARKLY APPARENT YESTERDAY WHEN HIROSHI KUMAGAI MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY HELD AN UNUSUAL DEBATE WITH BOWMAN CUTTER A TOP US NEGOTIATOR ON A JAPANESE SUNDAY MORNING TALK SHOW I WANT YOU TO UNDERSTAND CUTTERSAN THAT THE HOSOKAWA GOVERNMENT'S POLICY IS TO PROMOTE DRASTIC DEREGULATION MR KUMAGAI SAID COMPLAINING THAT US DEMANDS FOR JAPAN TO SET IMPORT TARGETS WOULD ACTUALLY BOOST GOVERNMENT INVOLVEMENT IN THE PRIVATE SECTOR WE CAN'T DO THINGS COUNTER TO THAT CRAIG FORMAN CONTRIBUTED TO THIS ARTICLE 9402070046 940207 REVIEW & OUTLOOK EDITORIAL LIFTING THE VIETNAM EMBARGO NOBODY SHOULD BE SURPRISED BY THE AMBIVALENCE WITH WHICH AMERICANS CONTEMPLATE THE CLINTON ADMINISTRATION'S DECISION TO LIFT THE TRADE EMBARGO WITH VIETNAM THE WAR HAS COME TO BE VIEWED AS AN OUTRIGHT US DEFEAT AT LEAST IN THE SENSE THAT IT FAILED TO SPARE SOUTH VIETNAM THE RIGORS OF A COMMUNIST TAKEOVER AMONG SOPHISTICATES IT'S BEEN THE FASHION FOR SOME WHILE TO POKE FUN AT THE DOMINO THEORY THE NOTION THAT A COMMUNIST WALKOVER IN VIETNAM COULD HAVE PROVOKED SUCCESSIVE ATTACKS ON THAILAND MALAYSIA AND THE REST OF SOUTHEAST ASIA THE SAME SCHOOL EXPLAINS AWAY THE BLOODY TRIUMPH OF COMMUNISM IN CAMBODIA BY BLAMING IT ON THE AMERICANS INDEED THERE'S STILL A BODY OF OPINION THAT BELIEVES THAT THE AMERICAN INVOLVEMENT IN VIETNAM WAS AN EVIL ENTERPRISE FROM THE BEGINNING WE FAVOR THE LIFTING OF THE EMBARGO BUT NOT AS A WAY TO BURY THE PAST OR THE AMERICA THAT FOUGHT IN VIETNAM THE WAR WAS WAGED NOT WISELY BUT FOR HONORABLE PURPOSES IN MOVING TO A NEW PHASE OF USVIETNAMESE RELATIONS WE HOPE THAT AMERICA'S POLICYMAKERS WILL CONTINUE TO DO WHAT THEY REASONABLY CAN TO ADVANCE THE CAUSE OF FREEDOM FOR THE PEOPLE OF VIETNAM AND ASIA GENERALLY FOR IN THIS PART OF THE WORLD THE WAR'S LEGACY LOOKS RATHER DIFFERENT IT WAS WIDELY UNDERSTOOD IN THOSE DAYS THAT ASIA'S FUTURE WAS INDEED UP FOR GRABS YOUNG NATIONS WERE JUST FINDING THEIR SEA LEGS AND LEFTIST IDEOLOGUES SAW A RIPE OPPORTUNITY TO COMMANDEER THESE UNSTEADY SOCIETIES AND MARCH THEM OFF AT GUNPOINT WITH MOSCOW AND BEIJING SUPPLYING THE GUNS TO THE LABORATORY FOR BIZARRE SOCIAL EXPERIMENTS IN THAT RESPECT AMERICA'S STAUNCHNESS LAID THE FOUNDATION FOR THE REGION'S PROSPERITY TODAY THIS DOES NOT NEED MUCH EXPLAINING TO ASIA'S PEOPLE THOUGH PERHAPS TO AMERICANS WHATEVER THEIR RELEVANCE TO THE CHALLENGES OF THE NEXT CENTURY THE REMARKABLE STAYING POWER OF LEADERS SUCH AS LEE KUAN YEW IN SINGAPORE SUHARTO IN INDONESIA AND EVEN FERDINAND MARCOS IN THE PHILIPPINES BEARS TESTIMONY TO THE FEARS AND HUNGER FOR STABILITY DERIVED FROM SO MANY YEARS OF LIVING DANGEROUSLY THE SAME CONCERNS GAVE BIRTH TO REGIONAL BODIES LIKE SEATO AND ASEAN BOTH FOUNDED WITH THE SPECIFIC AIM OF RESISTING COMMUNISM AND OF COURSE THE US NAVY IS STILL A WELCOME AND COMFORTING PRESENCE THOUGH ASIAN POLITICIANS TRY NOT TO ADMIT IT TOO LOUDLY THE QUESTION REMAINS WHAT TO DO ABOUT VIETNAM BY ALL MEANS LET THERE BE MUTUALLY SATISFYING TRADE BETWEEN THE US AND VIETNAM ECONOMICALLY AMERICAN BUSINESSES CAN JUDGE THEIR OWN RISKS POLITICALLY AS WITH CHINA TRADE WITH THE WEST CAN ONLY BE SUBVERSIVE OF THE ESTABLISHED ORDER IT IS BOUND TO SPREAD KNOWLEDGE OF THE OUTSIDE WORLD IT PRODUCES PROSPERITY SOMETHING COMMUNISM HAS NOT AND HELPS TO REAWAKEN AMONG OPPRESSED PEOPLE THE HABITS OF INDEPENDENT THOUGHT AND PERSONAL INITIATIVE OVER TIME HISTORY SUGGESTS ECONOMIC GROWTH RESULTS IN GREATER RESPECT FOR HUMAN RIGHTS AND DEMOCRACY TO BE EFFECTIVE THOUGH THESE PURPOSES NEED TO BE KEPT IN MIND IN PARTICULAR TRADE NEED NOT BE ACCOMPANIED BY DIPLOMATIC HYPOCRISY AND THE FULL PANOPLY OF GOVERNMENTTOGOVERNMENT PAYOLA THE KIND OF LARGESSE ROUTINELY DISHED OUT BY US AID THE EXPORTIMPORT BANK AND THE MULTILATERAL LENDERS WOULD JUST FLOW INTO THE COFFERS OF THE HANOI REGIME AS INDEED IT ALREADY HAS THIS IS DUBIOUS ENOUGH AS AN ECONOMIC PROPOSITION AS POLITICS IT'S WORSE THE FLOW OF MONEY AND CREDIT MERELY BECOMES FUEL FOR THE SORT OF CORRUPTION AND FAVORDISPENSING THAT ALLOWS COMMUNIST REGIMES TO RETAIN THEIR GRIP ON LIFE LONG AFTER EVEN THEIR OWN CADRES HAVE ABANDONED BELIEF IN ANYTHING BUT KEEPING THEMSELVES IN POWER SIMILARLY THE US AND THE REST OF THE WORLD'S DEMOCRACIES SHOULD NOT DEPICT TRADE AS A STAMP OF APPROVAL FOR DESPOTIC REGIMES IN LIFTING THE EMBARGO INDEED PRESIDENT BILL CLINTON HAS OFFERED THE WORST OF ALL POSSIBLE REASONS HE SAYS HE'S MOTIVATED ENTIRELY BY CONCERN FOR RESOLVING THE FATE OF MISSING SERVICEMEN AND THAT ON THIS ISSUE HANOI HAS TURNED MORE REASONABLE HE RUNS AN ENORMOUS RISK THAT HISTORY WILL PROVE THIS A DELUSION IF NOT A LIE NOT EVEN JANE FONDA CAN STILL HARBOR ILLUSIONS ABOUT THE MORAL QUALITIES OF THE CLIQUE IN HANOI NOT AFTER HUNDREDS OF THOUSANDS OF VIETNAM'S OWN PEOPLE RISKED HORRIFYING DEATHS AT SEA TO ESCAPE ITS TYRANNICAL RULE THE HANOI REGIME MUST KNOW A GREAT DEAL ABOUT THE MISSING SERVICEMEN BUT HAS DISHED OUT INFORMATION IN A CYNICAL BARGAINING GAME NO DOUBT PATTING ITSELF ON THE BACK FOR EXPLOITING WHAT MUST BE REGARDED AS WESTERN SENTIMENTALITY THESE ARE THE SAME VIETNAMESE LEADERS WHO CALCULATEDLY SET UP THEIR OWN VIET CONG ALLIES IN THE SOUTH TO BE DECIMATED IN THE TET OFFENSIVE THUS DISPENSING WITH COLLEAGUES WHO MIGHT BE AN INCONVENIENCE AFTER VICTORY THE WESTERN MEDIA NATURALLY TOOK THE VIET CONG SACRIFICE AS A MEASURE OF THE COMMUNISTS' MORAL COMMITMENT BUT YOU DON'T EXACTLY HAVE TO RANSACK THE ARCHIVES TO FIND THAT THE NORTH VIETNAMESE TOOK A MORE CYNICAL VIEW SO WHILE IT SEEMS HIGHLY UNLIKELY THAT US SOLDIERS AND AIRMEN ARE STILL BEING HELD THERE'S STILL A WORLD OF MYSTERY EMBODIED IN THE PHRASE DIED IN CAPTIVITY AMERICA MAY HAVE BEEN ON THE WAR'S LOSING SIDE BUT IT REMAINED THE RICHEST MOST POWERFUL NATION IN THE WORLD CERTAINLY IT'S POSSIBLE THAT SOME OF ITS POWS LEARNED OR SUFFERED THINGS WHILE IN COMMUNIST HANDS THAT HANOI WOULD PREFER THAT THE AMERICAN PEOPLE AND GOVERNMENT NEVER FIND OUT ABOUT DOES ANYBODY DOUBT THAT THE NORTH VIETNAMESE COMMUNISTS WERE CAPABLE OF STAGING THE MURDER OF TROUBLESOME PRISONERS THERE ALSO REMAINS THE UNANSWERED QUESTION OF WHETHER SOME PRISONERS WERE SHIPPED TO THE SOVIET UNION AND WHAT UNPLEASANT FATE OVERTOOK THEM THERE WHILE SOME OF OUR MOST HEROIC FORMER PRISONERS DISMISS THESE CONCERNS THEY ARE BY NO MEANS THE PROVINCE MERELY OF DISTRAUGHT FAMILIES CON MEN AND KOOKS GEORGE A CARVER JR THE CIA ANALYST WHOSE ESTIMATES WERE REPEATEDLY VINDICATED DURING THE WAR HAS SPELLED OUT HIS SUSPICIONS ON THESE PAGES THE POW DRAMA MAY 20 1993 AND FORMER NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI HAS RAISED THE POSSIBILITY OF A KATYN MASSACRE OF RETAINED PRISONERS FOR THOSE WITH A TASTE FOR DETAIL JOHN CORRY HAS A LONG REPORT IN THE NEW AMERICAN SPECTATOR PRESIDENT CLINTON SHOWED WHAT WE HOPE WAS SINCERE SENSITIVITY TO THE CONCERNS OF THE MIAPOW FAMILIES IN THE WAY HE ANNOUNCED THE EMBARGO REPEAL DESPITE THIS HANOI WILL DO ALL THAT IT CAN TO BILL HIS INITIATIVE AS A BADGE OF RESPECTABILITY PRINCIPLE HAS NOT ALWAYS BEEN APPARENT IN CLINTON FOREIGN POLICY BY WELCOMING A PROPAGANDIST FOR THE IRISH REPUBLICAN ARMY HE HAS ANTAGONIZED GOOD BRITISH FRIENDS IN ORDER TO THROW A SOP TO THE IRISH LOBBY IN THE US SENATE HIS EMBRACE OF BORIS YELTSIN HAS LATELY COME AT THE EXPENSE OF THE NEWLY INDEPENDENT EXSOVIET SUBJECT NATIONS WHICH NOW WONDER IF WASHINGTON PLANS TO ACQUIESCE IN THE RESURRECTION OF THE USSR ON VIETNAM AGAIN THE PROBLEM IS NOT SO MUCH WHAT MR CLINTON DID AS THE WAY HE TRIED TO EXPLAIN IT HIS OWN RELATIONSHIP TO THIS COMPLEX LEGACY REMAINS AMBIGUOUS TO PUT IT CHARITABLY NO DOUBT HE WANTS TO PUT VIETNAM BEHIND US AND HIM BUT IT WOULD BE REASSURING IF HE COULD RECOGNIZE THAT AMERICA FOUGHT THE WAR PARTLY TO SECURE THE FREEDOM AND HOPES FOR PROSPERITY OF THE VIETNAMESE PEOPLE AND THAT WHILE THE US DID NOT ACHIEVE THIS GOAL IT HASN'T FORGOTTEN IT HONORING THE SACRIFICE OF THOSE WHO FOUGHT IN VIETNAM DOES NOT REQUIRE A PERPETUAL SELFDEFEATING EMBARGO BUT IT DOES REQUIRE TRYING TO DEVELOP RELATIONS IN WAYS THAT BRING CLOSER THE FREEDOM THAT THE VIETNAMESE MIGHT ALREADY ENJOY IF THE WAR HAD ENDED DIFFERENTLY 9402070045 940207 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN NOVA TV THE FIRST COMMERCIAL NETWORK IN EASTERN EUROPE BEGAN BROADCASTING IN THE CZECH REPUBLIC ENDING FOUR DECADES OF STATEDOMINATED TELEVISION WHILE PRIVATE BROADCASTERS OPERATE IN SOME FORMER COMMUNIST STATES IN THE REGION INCLUDING POLAND AND ROMANIA NOVA IS THE FIRST TO WIN GOVERNMENTHELD RIGHTS TO A NATIONWIDE FREQUENCY MOST OF THE 45 MILLION IN CAPITAL FOR NOVA A UNIT OF CET 21 WITH FIVE OWNERS CAME FROM CENTRAL EUROPEAN DEVELOPMENT CORP RUN BY A FORMER US ENVOY TO HUNGARY MARK PALMER THE STATION CHALLENGING STATESUBSIDIZED CZECH TELEVISION OFFERS A MIX OF CZECH PUBLICAFFAIRS SHOWS AND WESTERN ENTERTAINMENT A NOVA TALK SHOW CIVIC JUDO JOINS THE PUBLIC AND JOURNALISTS IN QUESTIONING GOVERNMENT FIGURES STILL AN UNFAMILIAR SCENARIO FOR MANY CZECHS FOUR YEARS AFTER HARDLINE RULE COLLAPSED NOVA LAUNCHED ITS PRIME TIME WITH ELEMENTARY SCHOOL A 1992 OSCARNOMINATED CZECH HIT AND GHOSTBUSTERS STATE TV COUNTERED WITH THE GODFATHER FORBIDDEN UNDER COMMUNIST RULE BRITISH COAL PLANS TO CLOSE FOUR MORE MINES WITH 3000 TOTAL EMPLOYEES FINANCIAL LOSSES AT EACH OF THESE COLLERIES ONE IN NORTHUMBERLAND THREE IN NOTTINGHAMSHIRE HAVE GROWN TO AS MUCH AS 15 MILLION A MONTH BECAUSE OF DECLINING DEMAND FOR COAL THE CLOSURES WOULD LEAVE BRITISH COAL WITH 16 OPERATING PITS BRITISH COAL HAS CLOSED MORE THAN 30 MINES OVER THE PAST YEAR IN EFFORTS TO MAKE THE STATEOWNED INDUSTRY MORE EFFICIENT AND PREPARE IT FOR PRIVATIZATION IN EARLY 1995 THE CZECH REPUBLIC HUNGARY POLAND AND SLOVAKIA AGREED TO FORM THE CENTRAL EUROPEAN FREE TRADE ZONE BY 1997 THREE YEARS EARLIER THAN PLANNED IN 1992 THEY SIGNED AN ACCORD TO CREATE THE ZONE WITHIN EIGHT YEARS THE FOUR NATIONS WITH A MARKET OF 65 MILLION PEOPLE ARE AMONG THE MOST ECONOMICALLY ADVANCED OF THE FORMER SOVIET SATELLITES CREATION OF THE TRADE ZONE ALSO IS VIEWED AS A PRELIMINARY STEP TO APPLY TO JOIN THE EUROPEAN UNION OF WESTERN INDUSTRIALIZED COUNTRIES SWEDISH OPPOSITION TO MEMBERSHIP IN THE EUROPEAN UNION IS DECREASING A SURVEY PUBLISHED IN THE DAGENS INDUSTRI BUSINESS DAILY FOUND SWEDEN'S APPLICATION WAS FAVORED BY 39 OF THE RESPONDENTS AND OPPOSED BY 30 WHILE 31 WERE UNCERTAIN IN A COMING REFERENDUM ON EU MEMBERSHIP 53 PLAN TO VOTE AGAINST IT AND 47 FOR JOINING THIS GAP OF 6 PERCENTAGE POINTS SHRANK FROM 23 POINTS IN A POLL TWO MONTHS AGO AND 25 POINTS IN SEPTEMBER AS ANOTHER ROUND OF TALKS ENDED REPRESENTATIVES OF CHINA AND TAIWAN CITED PROGRESS IN NARROWING DIFFERENCES IN THE BEIJING TALKS THE TWO SIDES ESSENTIALLY AGREED ON REPATRIATING AIRPLANE HIJACKERS RETURNING ILLEGAL IMMIGRANTS AND RESOLVING FISHING DISPUTES BUT SAID DETAILS REMAINED UNSETTLED THE MEETING AMOUNTED TO THE HIGHESTLEVEL CONTACT SINCE TWO SEMIOFFICIAL GROUPS HELD A GROUNDBREAKING SUMMIT LAST APRIL TAIWAN HAS BANNED OFFICIAL CONTACT WITH CHINA SINCE 1949 THOUGH IT EASED UP FOR CIVILIAN LINKS AND INDIRECT ECONOMIC TIES IN THE LATE 1980S THE EUROPEAN UNION'S AVERAGE UNEMPLOYMENT IN 1993 ROSE TO A PRELIMINARY RATE OF 105 FROM 99 IN 1992 EUROSTAT THE 12COUNTRY BLOC'S STATISTICS AGENCY ESTIMATED THE NUMBER OF JOBLESS PEOPLE TOTALED 158 MILLION AN INCREASE OF 19 MILLION UNEMPLOYMENT INCREASED ACROSS THE BOARD LED BY SPAIN WHERE IT WAS UP 659000 OR 24 TO 35 MILLION WESTERN GERMANY UP 355000 OR 26 TO 173 MILLION ITALY UP 235000 OR 95 TO 27 MILLION AND FRANCE UP 210000 OR 85 TO 27 MILLION THE SMALLEST INCREASES WERE IN BRITAIN UP 102000 OR 3 TO 31 MILLION AND IRELAND UP 9000 ALSO 3 TO 255000 A PUBLICINTEREST LOBBY IN THE EUROPEAN UNION IS CAMPAIGNING FOR RESIDENTS TO REFUSE TO SHOW THEIR PASSPORTS WHEN TRAVELING FROM ONE MEMBER STATE TO ANOTHER EURO CITIZEN ACTION SERVICE SAID THIS WOULDN'T AMOUNT TO CIVIL DISOBEDIENCE RATHER IT BLAMED THE EU COUNTRIES THAT FAILED TO HONOR THEIR PLEDGE TO ELIMINATE BORDER CONTROLS THE CALL TO WITHHOLD PASSPORTS FOLLOWED THE FOURTH DELAY UNDER A PACT TO ABOLISH CONTROLS AT INTERNAL BORDERS OF NINE OF THE 12 EU STATES LAST WEEK WHEN THE LATEST DEADLINE WAS MISSED THE CITIZENS LOBBY REOPENED A BRUSSELS HOTLINE AND FIELDED MORE THAN 100 CALLS IN 12 HOURS FROM EU RESIDENTS SOME OF THE BIGGEST GRIPES CAME FROM NONEU NATIONALS WHO RESIDE LEGALLY IN AN EU MEMBER STATE THE AFGHANBORN WIFE OF A GERMAN CITIZEN COMPLAINED ABOUT HAVING TO GO TO STUTTGART TO GET A VISA TO VISIT STRASBOURG EVEN THOUGH THE COUPLE LIVES JUST A HALFHOUR AWAY FROM THE FRENCH CITY JAPAN LAUNCHED ITS HII ROCKET THE FIRST WITH ALLDOMESTIC TECHNOLOGY PUTTING AN UNMANNED PROTOTYPE SHUTTLE AND A SATELLITE INTO ORBIT THE EUROPEAN UNION SET MINIMUM PRICES ON WHITE FISH AND SALMON IMPORTS THROUGH MARCH 15 AT FRANCE'S REQUEST TO PROTECT FISHERMEN WHO HAVE PROTESTED LOWPRICED SUPPLIES FROM ABROAD THE BIBLE OR PARTS OF IT HAVE BEEN TRANSLATED INTO 2062 OF THE WORLD'S ESTIMATED 6000 LANGUAGES WITH 44 LANGUAGES ADDED TO THE LIST LAST YEAR THE UNITED BIBLE SOCIETIES IN LONDON SAID 9402070044 940207 BUSINESS BRIEF MOBIL CORP CAPITAL EXPLORATION BUDGET TO BE INCREASED 17 IN 1994 MOBIL CORP SAID IT WILL INCREASE ITS 1994 CAPITAL AND EXPLORATION BUDGET BY 17 TO 42 BILLION FROM LAST YEAR'S 36 BILLION MOBIL'S CHAIRMAN ALLEN E MURRAY SAID THE INCREASE REFLECTS A STRONG BALANCE SHEET AND CONTINUED OPTIMISM ABOUT ATTRACTIVE OPPORTUNITIES FOR GROWTH HE ADDED THAT THE FAIRFAX VA OIL CONCERN WILL STAY FLEXIBLE AND THE BUDGET CAN BE REVISED IF THE BUSINESS ENVIRONMENT WARRANTS CHANGES DURING THE YEAR MR MURRAY SAID 65 OF THE SPENDING WILL BE FOCUSED IN THE INTERNATIONAL AREA ABOUT THE SAME RATE AS LAST YEAR SPENDING IN 1993 WAS DOWN FROM 1992'S 45 BILLION BECAUSE OF THE TIMING OF SOME EXPENDITURES AND A SOMEWHAT SMALLER CAPITAL APPROPRIATIONS BUDGET SPENDING FOR EXPLORATION AND PRODUCING WILL RISE TO 26 BILLION FROM 2 BILLION IN MARKETING AND REFINING THE BUDGET WILL STAY THE SAME AT 12 BILLION AND SPENDING AT THE CHEMICAL DIVISION WILL REMAIN AT 300 MILLION IN ADDITION TO THE CAPITAL AND SPENDING PROJECTED FOR THIS YEAR MOBIL SAID ITS CASH INVESTMENTS IN EQUITY COMPANIES WILL BE ABOUT 200 MILLION DOUBLE LAST YEAR'S LEVEL 9402070043 940207 BUSINESS BRIEF STORAGE TECHNOLOGY CORP LONGDELAYED ICEBERG LINE IS TO BE SHOWN TO ANALYSTS STORAGE TECHNOLOGY CORP IS EXPECTED TO SHOW ITS LONGDELAYED ICEBERG DATASTORAGE LINE AT A MEETING WITH SECURITIES ANALYSTS ON THURSDAY COMMON SHARES OF THE LOUISVILLE COLO MAKER OF TAPE AND DISK STORAGE SYSTEMS GAINED LAST WEEK RISING 1875 TO CLOSE AT 3625 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY A SPOKESMAN SAID 15 ICEBERG UNITS HAVE BEEN SENT TO CUSTOMERS INCLUDING BOTH TEST AND PRODUCTION UNITS HE WOULDN'T PREDICT WHEN VOLUME SHIPMENTS OF ICEBERG UNITS WOULD BEGIN BUT SAID THE COMPANY PLANS TO BRING OUT FOUR NEW DISKSTORAGE PRODUCTS FOR MAINFRAME COMPUTERS THIS YEAR HE ALSO SAID STORAGE TECHNOLOGY WOULD INCREASE ITS WORK FORCE BY ABOUT 1000 PEOPLE OR 10 TO SUPPORT THE EFFORT ICEBERG IS DESIGNED TO BE FAULTTOLERANT TO CONTINUE WORKING EVEN IF A PART FAILS AND USES A DESIGN APPROACH IN WHICH MANY SMALLER DISKS WORK TOGETHER AS A SINGLE SYSTEM IT WAS ANNOUNCED TWO YEARS AGO BUT HAS BEEN DELAYED REPEATEDLY BY SOFTWARERELATED PROBLEMS 9402070042 940207 BUSINESS BRIEF ELECTROCOM AUTOMATION INC COMPANY TO REPORT EARNINGS WITHIN 4THPERIOD FORECASTS ELECTROCOM AUTOMATION INC ARLINGTON TEXAS SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS WERE BETWEEN 34 CENTS AND 38 CENTS A SHARE GD DAN THOMPSON PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY HAD EARNINGS OF 68 MILLION OR 25 CENTS A SHARE ON SALES OF 888 MILLION A YEAR EARLIER SALES TOTALED 119 MILLION TO 129 MILLION IN THE LATEST QUARTER THE 1993 FOURTHQUARTER RESULTS WERE WITHIN ANALYSTS' FORECASTS OF 35 CENTS TO 40 CENTS A SHARE THE COMPANY SAID FOR THE YEAR THE MAKER OF AUTOMATED DOCUMENT PROCESSORS AND PACKAGE SORTERS EXPECTS TO REPORT PERSHARE EARNINGS OF 104 TO 108 ON SALES OF 405 MILLION TO 415 MILLION THE COMPANY HAD PROFIT OF 277 MILLION OR 102 A SHARE ON SALES OF 4698 MILLION A YEAR EARLIER MR THOMPSON REPEATED THE COMPANY'S PREDICTION THAT ITS RESULTS IN 1994 WILL RESEMBLE 1993'S NUMBERS 9402070041 940207 ATHENS TO PROBE SALE OF HERACLES TO FERRUZZI GROUP BY JENNY PARIS SPECIAL TO THE WALL STREET JOURNAL ATHENS THE SOCIALIST GOVERNMENT HAS TURNED UP THE HEAT AND ORDERED A CRIMINAL INVESTIGATION INTO THE 1992 SALE OF GREEK CEMENT MAKER AGET HERACLES SA TO A CONSORTIUM LED BY A SUBSIDIARY OF ITALY'S FERRUZZI SPA SOCIALIST JUSTICE MINISTER GEORGE KOUVELAKIS HAS REQUESTED THAT THE INVESTIGATION BE OPENED AMID ALLEGATIONS OF POSSIBLE FRAUD AND BRIBERY INVOLVING THE SALE OF THE COMPANY FOR 225 MILLION TO A CONSORTIUM FORMED BY ITALY'S CONSTRUCTION GIANT CALCESTRUZZI SPA AND THE GREEK NATIONAL BANK AT THE TIME OF THE SALE THE THENCONSERVATIVE GOVERNMENT HAILED THE TRANSACTION AS THE NATION'S BIGGEST PRIVATIZATION SUCCESS STORY BUT MORE THAN A YEAR AGO PARLIAMENT BEGAN TO TAKE A CLOSER LOOK AT THE DEAL AMID ALLEGATIONS OF BRIBES AND BID RIGGING AS WELL AS OPPOSITION CLAIMS THAT CONSERVATIVE PRIME MINISTER CONSTANTINE MITSOTAKIS HAD SOLD HERACLES AT A VERY LOW PRICE THAT PROBE WAS DROPPED WHEN PARLIAMENT WAS DISSOLVED MR MITSOTAKIS HAS REPEATEDLY DENIED ANY WRONGDOING AND SAID THE PRICE THAT WAS SETTLED ON WAS HIGHER THAN OTHER OFFERS THE SOCIALISTS WHO REGAINED POWER IN OCTOBER HAVE SAID THEY PLAN TO RENATIONALIZE THE COMPANY BUT SO FAR HAVEN'T GIVEN ANY DETAILS ABOUT HOW OR WHEN THEY PLAN TO DO SO MEANWHILE CALCESTRUZZI AND ITS PARENT COMPANY FERRUZZI HAVE BEEN ENTANGLED IN ITALY'S WIDESPREAD CORRUPTION SCANDALS INVOLVING LARGE KICKBACKS PAID TO POLITICAL PARTIES IN ADDITION ITALIAN MAGISTRATES ARE LOOKING INTO THE HERACLES SALE TO DETERMINE WHETHER POLITICAL FIGURES WERE BRIBED AUTHORITIES IN ATHENS EXPECT THAT THEIR CRIMINAL PROBE WILL BE AIDED BY THE ITALIAN INVESTIGATION MR KOUVELAKIS SAID THE GREEK GOVERNMENT HAD NO CHOICE BUT TO ORDER ITS INVESTIGATION AS NEW ALLEGATIONS OVER THE SALE COME TO LIGHT EVERY DAY THE JUSTICE MINISTER SAID NIKOS GEORGIADES HERACLES'S PRESIDENT BEFORE THE COMPANY WAS SOLD ADMITTED TO COURT AUTHORITIES THAT HE WAS PAID A COMMISSION OF 12 MILLION TO ACT AS A MIDDLEMAN IN THE SALE IT IS A VERY LARGE COMMISSION PAYMENT AND WE HAVE TO INVESTIGATE WHETHER THIS MONEY WAS USED FOR BRIBES MR KOUVELAKIS SAID MR GEORGIADES COULDN'T BE REACHED FOR COMMENT IF ANY EVIDENCE INVOLVING POLITICAL FIGURES ARISES IN THE CRIMINAL INVESTIGATION THE CASE WILL GO BACK TO PARLIAMENT WHICH CAN LAUNCH ITS OWN PROBE AND PROSECUTE DEPUTIES AND FORMER MINISTERS FORMER CONSERVATIVE ECONOMY MINISTERS STEPHANOS MANOS AND EFTHYMIOS CHRISTODOULOU AS WELL AS MR MITSOTAKIS WERE ALL INVOLVED IN THE SALE AT ONE STAGE OR ANOTHER MR MANOS AND MR CHRISTODOULOU HAVE ALSO DENIED ANY WRONGDOING ONE OF THOSE INVOLVED WITH THE SALE FORMER NATIONAL BANK GOVERNOR MIHALIS VRANOPOULOS WAS SHOT AND KILLED IN ATHENS LAST MONTH THE EXTREME LEFTIST GUERILLA GROUP NOVEMBER 17 CLAIMED RESPONSIBILITY FOR THE MURDER BLAMING MR VRANOPOULOS FOR BEING ONE OF THE KEY FIGURES IN THE SCANDAL SINCE LOSING POWER IN OCTOBER MR MITSOTAKIS HAS BEEN THE TARGET OF A SERIES OF ALLEGATIONS BY THE SOCIALIST GOVERNMENT A 20MEMBER PARLIAMENTARY COMMITTEE WAS FORMED LAST WEEK TO INVESTIGATE HIS ALLEGED INVOLVEMENT IN ILLEGAL WIRETAPPING WHILE A PUBLIC PROSECUTOR IS INVESTIGATING HIS PRIVATE ANTIQUITIES COLLECTION TO DETERMINE ITS ORIGIN 9402070040 940207 BUSINESS BRIEF CITFED BANCORP INC SHARP INCREASE IN EARNINGS EXPECTED FOR CURRENT PERIOD CITFED BANCORP INC DAYTON OHIO EXPECTS THAT STRONG HOME BUILDING ALONG WITH HIGHER FEE REVENUE FROM GROWING CONSUMERBANKING AND MORTGAGEBANKING BUSINESSES WILL CONTRIBUTE TO SHARPLY HIGHER EARNINGS FOR ITS FOURTH QUARTER ENDING MARCH 31 THE FINANCIALSERVICES CONCERN'S MANAGEMENT DOESN'T QUARREL WITH ANALYSTS' FORECASTS OF A RISE OF ABOUT 20 IN FISCAL FOURTHQUARTER EARNINGS SAID JERRY L KIRBY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER IN FISCAL 1993 CITFED EARNED 86 MILLION OR 203 A SHARE ANALYSTS PROJECT EARNINGS OF 250 A SHARE FOR THE CURRENT FISCAL YEAR THAT ESTIMATE INDICATES FOURTHQUARTER NET OF 63 CENTS A SHARE COMPARED WITH 52 CENTS A YEAR EARLIER EARNINGS WILL REFLECT HIGHER FEE REVENUE FROM MORTGAGE BANKING TRUST ACCOUNTS AND CHECKING ACCOUNTS OFFICIALS SAID IN ADDITION LOANLOSS PROVISIONS WILL DROP TO BETWEEN 600000 AND 750000 FROM 27 MILLION A YEAR EARLIER THEY SAID CITFED'S LARGEST UNIT IS CITIZENS FEDERAL BANK A SAVINGS BANK WITH ASSETS OF 183 BILLION AS OF DEC 31 9402070039 940207 BUSINESS BRIEF PAXAR CORP PLAN SET WITH SENSORMATIC ON ANTITHEFT LABEL SHIFT PAXAR CORP SAID IT FORMED AN ALLIANCE WITH SENSORMATIC ELECTRONICS CORP TO APPLY ANTITHEFT LABELS AND TAGS TO APPAREL AND OTHER SOFT GOODS BEFORE THEY LEAVE THE MANUFACTURING PLANT BY SEWING THE ANTITHEFT LABELS INTO MERCHANDISE RETAILERS CAN SAVE TIME AND LABOR COSTS OF ATTACHING THE TAGS TO MERCHANDISE AT STORES PAXAR WHICH MAKES FABRIC LABELS AND TAGS FOR RETAIL AND APPAREL MARKETS SAID THE COMPANY WOULD INCORPORATE THE ANTITHEFT TAGS INTO THE LABELS IT ALREADY MAKES THE PEARL RIVER NY COMPANY EXPECTS THE PROGRAM TO INCREASE SALES BY ABOUT 1 MILLION THIS YEAR SENSORMATIC DEERFIELD BEACH FLA SUPPLIES ELECTRONIC SECURITY SYSTEMS TO RETAIL COMMERCIAL AND INDUSTRIAL MARKETS THE AGREEMENT WITH PAXAR REPRESENTS THE INTRODUCTION OF ITS UNIVERSAL PRODUCT PROTECTION PROGRAM TO THE SOFT GOODS INDUSTRY LAST MONTH IT SAID HOME DEPOT INC BEGAN A SOURCE TAGGING PROGRAM TO PUT THE ANTITHEFT LABELS ONTO MERCHANDISE WHEN IT IS MADE OR DISTRIBUTED 9402070038 940207 PARAMOUNT ENDORSES BID OF VIACOM OVER RIVAL QVC NEW YORK DIRECTORS OF PARAMOUNT COMMUNICATIONS INC ENDORSED A TAKEOVER BID BY VIACOM INC OVER A RIVAL BID BY QVC NETWORK INC FOLLOWING THE FINAL ROUND OF BIDDING IN THE LONGRUNNING TAKEOVER BATTLE PARAMOUNT STOCKHOLDERS HAVE UNTIL FEB 14 TO DECIDE WHICH OF THE TWO OFFERS EACH VALUED AT MORE THAN 10 BILLION TO ACCEPT THE BOARD URGED SHAREHOLDERS TO TENDER THEIR STOCK TO ONE OR THE OTHER BIDDER WARNING THAT ALLOWING THE CONTEST TO DRAG ON POSES A RISK TO PARAMOUNT'S BUSINESS AND COULD PERSUADE VIACOM TO DROP ITS OFFER ALTHOUGH VIACOM SAID FRIDAY THAT IT ISN'T CONSIDERING DROPPING ITS BID STOCK TRADERS SAID THAT FRIDAY'S 9624POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE MIGHT INDUCE INVESTORS TO MAKE A DECISION RATHER THAN RISK A STEEPER MARKET DECLINE THAT COULD CAUSE ONE OR BOTH BIDDERS TO REASESS THEIR OFFERS 9402070037 940207 LETTERS TO THE EDITOR MUSLIM SCOWL BRINGS CHANEL TO ITS KNEES YOU REPORTED WORLD WIRE JAN 21 THAT THE FASHION HOUSE CHANEL AND DESIGNER KARL LAGERFELD HAVE PUT LINES FROM THE KORAN ON SOME OF THEIR SUMMER LINE THEN TO PLACATE A HANDFUL OF MUSLIMS WHOSE DELICATE SENSIBILITIES WERE OFFENDED THEY MADE AN INSTANT PILGRIMAGE TO CANOSSA IN ADDITION TO EXPUNGING ALL TRACE OF THE OFFENDING GARMENTS FROM THE FACE OF THE EARTH THEY ALSO ASKED THAT ALL PHOTOS AND TV RECORDS BE DESTROYED ALL THE WHILE DENYING THAT THEY WERE DOING SO OUT OF FEAR OF REPRISALS THEIR ACTIONS RAISE A FEW QUESTIONS WHY AREN'T THE DEFENDERS OF FREEDOM OF SPEECH ETC SCREAMING BLOODY MURDER WHY WAS IT SO NECESSARY TO DENY THAT THEY FEARED REPRISALS WHEN NONE WERE THREATENED IF IN THE FUTURE THEY SHOULD SIMILARLY OFFEND JEWS OR CHRISTIANS WILL THEY UNDERTAKE SIMILAR CORRECTIVE ACTION WITH THE SAME ALACRITY SPONTANEOUSLY OR ONLY IF THE VATICAN STARTS OFFERING BOUNTIES WHOM DO THEY THINK THEY'RE KIDDING 9402070036 940207 WHAT'S NEWS BUSINESS AND FINANCE THE FED'S DECISION TO RAISE SHORTTERM INTEREST RATES FOR THE FIRST TIME IN NEARLY FIVE YEARS WON'T HAVE A SIGNIFICANT IMPACT ON THE ECONOMY MOST ECONOMISTS SAY THEY SAY THE FED BY NUDGING UP THE FEDERAL FUNDS RATE TO 325 FROM 3 BEFORE INFLATION HAD BEGUN TO ACCELERATE IS WAGING A PSYCHOLOGICAL WAR THE MOVE DREW A MILD RESPONSE FROM THE WHITE HOUSE DEMONSTRATING THAT A GREENSPANCLINTON ALLIANCE CONTINUES STOCKS FELL SHARPLY ON THE FED ACTION BUT MANY ANALYSTS DON'T THINK THE RATE RISE WILL DERAIL THE BULL MARKET THE DOW JONES INDUSTRIALS PLUNGED 9624 POINTS OR 24 TO 387142 THE UNEMPLOYMENT RATE ROSE TO 67 OF THE WORK FORCE IN JANUARY INTERRUPTING A STRING OF ENCOURAGING JOB GAINS BUT A HEALTHY RISE IN FACTORY EMPLOYMENT SUGGESTS THAT THE LABOR MARKET IS STILL ON SOLID FOOTING JAPANESE TRADE NEGOTIATORS SAY US OFFICIALS ARE PRESSING JAPANESE CAR MAKERS IN THE US TO PRODUCE CARS THAT HAVE 90 OF THEIR PARTS MADE IN NORTH AMERICA LOCALCONTENT RULES FAR TOUGHER THAN FOR OTHER FOREIGN FIRMS THE TEAMSTERS UNION ADVISED ITS WORKERS TO DEFY A COURT ORDER AND STRIKE UPS TODAY THE MOVE COULD CRIPPLE THE PACKAGECARRIER AND DISRUPT BUSINESSES THROUGHOUT THE COUNTRY DETROIT'S BIG THREE ARE ESCALATING THEIR EFFORTS TO PERSUADE CLEANAIR REGULATORS IN CALIFORNIA AND THE NORTHEAST TO RETREAT FROM A 1998 DEADLINE FOR THE MASS PRODUCTION OF ELECTRIC CARS US AUTO MAKERS RAISED THEIR PLANS FOR FIRSTQUARTER CAR OUTPUT 32 FROM THE ALREADY OPTIMISTIC SCHEDULE SET JUST A MONTH AGO IN ALL COMPANIES BUILDING VEHICLES IN THE US PLAN TO PRODUCE 20 MORE THAN A YEAR AGO CHRYSLER RECALLED ALL 15000 NEON CARS BUILT SO FAR TO REPLACE A COMPUTER UNIT AFTER HAVING STRESSED THE QUALITY CONTROLS IT IMPOSED ON THE NEW CAR THE INTERNATIONAL ENERGY AGENCY RAISED ITS FORECAST OF WORLDWIDE PETROLEUM DEMAND FOR THE FIRST QUARTER MERRILL LYNCH WAS BARRED FROM A LEAD UNDERWRITER'S ROLE IN FORTHCOMING BOND SALES BY MASSACHUSETTS MAJOR US AIRLINES ARE COMPETING FIERCELY FOR ROUTE RIGHTS TO VIETNAM AFTER SPENDING THE PAST TWO YEARS WOOING VIETNAMESE GOVERNMENT AND AIRLINE OFFICIALS IN ORDER TO GET A LEG UP ONCE THE US EMBARGO ENDED ROGERS COMMUNICATIONS DELAYED ITS PLAN TO MAKE A BID FOR MACLEAN HUNTER CITING UNCERTAINTIES RELATED TO A BLOCK OF THE TARGET COMPANY'S STOCK INDIRECTLY HELD BY MACLEAN INFORMATION RESOURCES CLIENT BRISTOLMYERS IS EXPECTED TO SWITCH ITS ACCOUNT TO NIELSEN ON FRIDAY IRI SAID ITS FOURTHQUARTER PROFIT WILL BE HALF OF WHAT WAS ANTICIPATED SENDING ITS STOCK DOWN 8875 OR 24 TO 2875 WLR FOODS' BOARD REJECTED AN UNSOLICITED OFFER BY TYSON FOODS TO BUY THE POULTRY PROCESSOR FOR 329 MILLION BRITISH AEROSPACE CHAIRMAN JOHN CAHILL IS EXPECTED TO RESIGN SOON IN THE WAKE OF A BOARDROOM TUSSLE ACCORDING TO VARIOUS UK NEWSPAPER REPORTS BONDS LEHMAN BROTHERS TREASURY INDEX 556088 OFF 3413 COMMODITIES OIL 1563 A BARREL OFF 26 CENTS DOW JONES FUTURES INDEX 14549 UP 060 SPOT INDEX 13127 OFF 008 DOLLAR 10930 YEN UP 116 17585 MARKS UP 00170 9402070035 940207 LETTERS TO THE EDITOR WALLACE STAYED TRUE TO EVOLUTION THEORY JUDGING FROM SEVERAL IRATE LETTERS I HAVE RECEIVED IN REACTION TO MY JAN 10 LETTER TO THE EDITOR SOME HAVE MISUNDERSTOOD MY STATEMENT THAT ALFRED RUSSEL WALLACE REJECTED NATURAL SELECTION FOR THE ORIGIN OF MAN TO MEAN THAT HE REJECTED IT AS A GENERAL EXPLANATION OF EVOLUTION THIS IMPRESSION MAY HAVE BEEN INFLUENCED BY YOUR HEADLINE ORIGINATOR RECANTED ON NATURAL SELECTION AND THE ASSUMPTION THAT IF SOMETHING IS TRUE FOR MAN IT MUST BE TRUE FOR ALL ORGANISMS WALLACE REMAINED FIRM IN HIS SUPPORT OF HIS GENERAL THEORY UNTIL HIS DEATH IN 1913 HIS DEPARTURE FROM THIS VIEW FOR MAN MAY HAVE COST HIM DEARLY IN ACCREDITATION DARWIN ACCUSED HIM OF MURDERING OUR BABY BUT HE WAS NOT ONE TO BE GREATLY CONCERNED THE REAL ISSUE OF COURSE IS WHETHER COMPETENT SCIENTISTS RETAIN THE RIGHT TO TEACH A COURSE WHEN THEIR ANALYSIS OF THE FACTS LEADS THEM TO DEPART FROM THE CONVENTIONAL INTERPRETATION THE FACTS AFTER ALL ARE PRIMARY AND THE THEORIES IN SUCH AREAS AS EVOLUTION USUALLY TURN OUT TO BE WAY STATIONS AT BEST AND MERE CONSENSUAL DEVICES AT WORST 9402070034 940207 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ACF INDUSTRIES HOLDING CORP 200 MILLION OF FIVEYEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH & CO ACF INDUSTRIES INC 250 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL LYNCH AMERICAN PAGING INC INITIAL 35 MILLION SHARES VIA GOLDMAN SACHS & CO AMLI RESIDENTIAL PROPERTIES INC INITIAL 92 MILLION SHARES VIA MERRILL LYNCH CHIQUITA BRANDS INTERNATIONAL INC 125 MILLION OF 10YEAR SENIOR NOTES VIA LEHMAN BROTHERS CONSEP INC INITIAL 22 MILLION SHARES VIA PRUDENTIAL SECURITIES INC DSP GROUP INC INITIAL 1850000 SHARES VIA OPPENHEIMER & CO FEDERALMOGUL CORP 4 MILLION SHARES VIA CS FIRST BOSTON GB PROPERTY FUNDING 185 MILLION OF 10YEAR FIRST MORTGAGE BONDS VIA SALOMON BROTHERS INC HEALTHCARE REALTY TRUST 6250000 SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP INTERCEL INC INITIAL 16 MILLION SHARES VIA ROBINSONHUMPHREY CO ISTITUTO MOBILIARE ITALIANO INITIAL 117 MILLION AMERICAN DEPOSITARY SHARES EQUAL TO ABOUT 35 MILLION SHARES VIA MORGAN STANLEY & CO JONES APPAREL GROUP INC 31 MILLION SHARES VIA MERRILL LYNCH KAISER ALUMINUM CORP 175 MILLION OF EIGHTYEAR SENIOR NOTES VIA MERRILL LYNCH LEVEL ONE COMMUNICATIONS INC 28 MILLION SHARES VIA ALEX BROWN & SONS INC NETMANAGE INC 19 MILLION SHARES VIA ROBERTSON STEPHENS & CO NEXTEL COMMUNICATIONS INC 400 MILLION OF 10YEAR SENIOR DISCOUNT NOTES VIA MERRILL LYNCH PACIFIC GULF PROPERTIES INITIAL 39 MILLION SHARES VIA ALEX BROWN & SONS PRT FUNDING CORP 85 MILLION OF 10YEAR SENIOR NOTES VIA SALOMON BROTHERS INC ROCHESTER TELEPHONE CORP 5 MILLION SHARES VIA SALOMON BROTHERS SKYWEST INC 1 MILLION SHARES VIA ROBINSONHUMPHREY SUMMIT PROPERTIES TRUST INITIAL 99 MILLION SHARES VIA MORGAN STANLEY TATHAM OFFSHORE INC INITIAL 5 MILLION SHARES VIA BEAR STEARNS & CO THERATECH INC 21 MILLION SHARES VIA WILLIAM BLAIR & CO TRISM INC INITIAL 18 MILLION SHARES VIA ALEX BROWN & SONS WEBCO INDUSTRIES INC INITIAL 25 MILLION SHARES VIA KIDDER PEABODY & CO WESTERN NATIONAL LIFE INSURANCE CO INITIAL 324 MILLION SHARES VIA MERRILL LYNCH XPEDITE SYSTEMS INC INITIAL 2 MILLION SHARES VIA PRUDENTIAL SECURITIES ONTARIO DEVELOPMENT AGENCY CALIF 1337 MILLION OF TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY CALIF 200 MILLION OF BONDS VIA A LEHMAN BROTHERS GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 190 MILLION OF MENTAL HEALTH SERVICES FACILITIES IMPROVEMENT REVENUE BONDS VIA A LAZARD FRERES & CO GROUP NEW MEXICO STUDENT LOAN AUTHORITY 150 MILLION OF STUDENTLOAN REVENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP OHIO 134 MILLION OF INFRASTRUCTURE IMPROVEMENT AND REFUNDING BONDS VIA A BEAR STEARNS GROUP PHOENIX CIVIC IMPROVEMENT CORP ARIZ 110 MILLION OF JUNIORLIEN WATER SYSTEM REVENUE BONDS VIA A PRUDENTIAL SECURITIES GROUP 9402070033 940207 BUSINESS BRIEF HERMAN'S SPORTING GOODS INC RETAILER IN CHAPTER 11 AGREES ON OVERHAUL WITH CREDITORS HERMAN'S SPORTING GOODS INC AND ITS OFFICIAL UNSECURED CREDITORS' COMMITTEE SAID THEY AGREED ON A REORGANIZATION PLAN FOR THE COMPANY THE PLAN IS EXPECTED TO PROVIDE UNSECURED CREDITORS WITH CASH AND EQUITY THAT WILL EXCEED 90 CENTS ON THE DOLLAR FOR THEIR CLAIMS THE AGREEMENT IS SUBJECT TO REVIEW BY THE COMMITTEE'S INVESTMENT BANKERS THE CARTERET NJ RETAILER SAID IT INTENDS TO FILE THE REORGANIZATION PLAN WITH US BANKRUPTCY COURT IN NEW JERSEY SHORTLY AND EXPECTS TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION BY MID1994 HERMAN'S OPERATIONS AS WELL AS ITS SECURED DEBT WERE PURCHASED BY A USBASED INVESTOR GROUP IN MARCH AND THE COMPANY FILED FOR BANKRUPTCYCODE PROTECTION SOON AFTER HERMAN'S CURRENTLY HAS ABOUT 98 STORES IN THE NORTHEAST CORRIDOR DOWN FROM 253 STORES AT ACQUISITION A HERMAN'S OFFICIAL SAID THE EXISTING OPERATION IS EXPECTED TO GENERATE 340 MILLION TO 350 MILLION IN SALES IN THE FISCAL YEAR WHICH STARTED TUESDAY 9402070032 940207 LETTERS TO THE EDITOR REPEATING NONSENSE THE OPENING OF YOUR JAN 10 ARTICLE ABOUT BLOCKBUSTER ENTERTAINMENT SELLING OUT TO VIACOM IS A REHASH OF NONSENSICAL VERBIAGE THAT WAS STARTED IN 1956 TO QUOTE HIGH FIDELITY MAGAZINE JUNE 1956 THE DEATH KNELL HAS SOUNDED FOR THE RECORD INDUSTRY WITH THE ADVENT OF TAPE RECORDERS WHY BUY RECORDS WHEN YOU WILL BE ABLE TO TAPE THEM OFF THE RADIO 9402070031 940207 NATIONSBANK WINS APPROVAL TO MERGE BRANCH NETWORKS ACROSS A STATE LINE BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL THE COMPTROLLER OF THE CURRENCY ALLOWED NATIONSBANK CORP TO MERGE TWO BRANCH NETWORKS IN MARYLAND AND THE DISTRICT OF COLUMBIA THE RULING BASED ON AN OBSCURE PROVISION IN FEDERAL LAW ALLOWS NATIONSBANK TO BYPASS PROHIBITIONS AGAINST OPERATING A SINGLE BRANCH NETWORK ACROSS STATE LINES IT ALSO CLEARS THE WAY FOR THE CHARLOTTE NCBASED COMPANY TO PURSUE AN AGGRESSIVE INTERSTATE CONSOLIDATION STRATEGY EVEN BEFORE CONGRESS REMOVES THE LONGSTANDING OBSTACLES TO INTERSTATE BRANCHING THE COMPTROLLER'S ACTION FOLLOWS A SIMILAR DECISION LAST MONTH AFFECTING FIRST FIDELITY BANCORP'S OPERATIONS IN NEW JERSEY AND PENNSYLVANIA THE TWO RULINGS REFLECT A GROWING LEVEL OF SUPPORT FOR INTERSTATE BRANCHING AN INTERSTATE BANKING BILL THAT WOULD ALLOW BRANCH NETWORK CONSOLIDATION RECENTLY SURFACED IN CONGRESS AND RECEIVED UNANIMOUS APPROVAL LAST WEEK FROM A HOUSE BANKING SUBCOMMITTEE THE HOUSE BILL ALSO SEEKS TO ELIMINATE OBSTACLES TO INTERSTATE ACQUISITIONS SIMILAR MEASURES PENDING IN STATE LEGISLATURES INCLUDING THOSE IN GEORGIA VIRGINIA AND FLORIDA ARE FUELING THE MOVEMENT TOWARD INTERSTATE BANKING AS WELL IT'S JUST A MATTER OF TIME BEFORE THESE BARRIERS ARE MOVED IN TERMS OF BOTH INTERSTATE BRANCHING AND INTERSTATE BANKING PREDICTED KATHRYN H BISSETTE AN ANALYST WITH STERNE AGEE & LEACH INC IN ATLANTA CURRENTLY BANKHOLDING COMPANIES IN MOST STATES MUST OPERATE A SEPARATE SUBSIDIARY IN EACH STATE WHERE THEY HAVE BRANCHES BUT NATIONSBANK AND OTHERS HAVE ARGUED THAT SUCH STRICTURES CREATE INCONVENIENCES FOR CUSTOMERS AND DRIVE UP COSTS FOR BANKS BEFORE THIS RULING FOR INSTANCE A NATIONSBANK CUSTOMER OPENING AN ACCOUNT IN MARYLAND COULDN'T MAKE A DIRECT DEPOSIT INTO THAT ACCOUNT FROM A BRANCH IN WASHINGTON WITH THE COMPTROLLER'S BACKING IN HAND NATIONSBANK MAY NOW PURSUE ADDITIONAL CONSOLIDATIONS ELSEWHERE IN ITS BRANCH SYSTEM WHICH COVERS NINE STATES AND THE DISTRICT OF COLUMBIA THE COMPANY IS LOOKING INTO THE POSSIBILITIES A SPOKESMAN SAID THOUGH IT HASN'T YET DETERMINED WHERE ITS NEXT MOVE MAY BE ONE CLEAR OPTION WOULD BE TO MERGE NATIONSBANK'S VIRGINIA OPERATIONS INTO ITS NEWLY CONSOLIDATED WASHINGTONAREA OPERATION ALTHOUGH IT WOULD NEED COMPTROLLER APPROVAL FOR THAT AND OTHER SUCH MOVES THE COMPTROLLER GRANTED THE SPECIAL RIGHTS TO NATIONSBANK AND FIRST FIDELITY UNDER A FEDERAL STATUTE THAT ALLOWS BANKS TO MOVE THEIR HEADQUARTERS AS MUCH AS 30 MILES AWAY FROM THE TOWN OR CITY WHERE THE BANK WAS ORIGINALLY CHARTERED REGARDLESS OF STATE BOUNDARIES NATIONSBANK CAN NOW MOVE THE OFFICIAL HEADQUARTERS OF AMERICAN SECURITY BANK NA FROM THE DISTRICT OF COLUMBIA TO SILVER SPRING MD 6 1/2 MILES FROM THE STATE LINE AMERICAN SECURITY CAN THEN BE MERGED WITH MARYLAND NATIONAL BANK BASED IN BALTIMORE NATIONSBANK PURCHASED BOTH BANKS LAST YEAR THE COMPANY SAID THE CONSOLIDATION IS EFFECTIVE IMMEDIATELY 9402070030 940207 LAW CALIFORNIA COURT DISMISSES CHARGES AGAINST WMX UNIT BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL A CALIFORNIA STATECOURT JUDGE DISMISSED THEFT CHARGES AGAINST A WMX TECHNOLOGIES INC UNIT AND EIGHT EMPLOYEES LIFTING A CLOUD THAT HAS HUNG OVER THE TRASH HAULER'S MUNICIPALCOLLECTION BUSINESS SINCE JULY 1992 WHEN INDICTMENTS WERE DISCLOSED THE DISMISSALS ARE A BIG VICTORY FOR OAK BROOK ILLBASED WMX FORMERLY KNOWN AS WASTE MANAGEMENT INC AND A SETBACK FOR ITS RIVAL IN THE TRASH BUSINESS HOUSTONBASED BROWNINGFERRIS INDUSTRIES INC THE CRIMINAL INDICTMENTS STEMMED FROM THE TWO COMPANIES' CONTRACTS WITH SAN JOSE CALIF FOR SEVERAL YEARS WMX HELD THE CITY'S HAULING CONTRACT AND BROWNINGFERRIS HAD THE DUMP CONTRACT FORCING THE NATION'S RESPECTIVE NO 1 AND NO 2 WASTE CONCERNS TO WORK TOGETHER THE INDICTMENT CHARGED WMX WITH STEALING FROM THE CITY AND FROM BROWNINGFERRIS BY DUMPING TRASH FROM COMMERCIAL CUSTOMERS AT A BROWNINGFERRIS DUMP WHILE PAYING A LOW MUNICIPAL DUMPING FEE BROWNINGFERRIS COMPLAINED THAT USING THE MUNICIPAL FEE TO DUMP TRASH COLLECTED FROM COMMERCIAL CUSTOMERS GAVE WMX AN UNFAIR MARKET ADVANTAGE WMX PERSUADED JUDGE DAVID LEAHY OF SUPERIOR COURT IN SANTA CLARA COUNTY THAT ITS CONTRACT WITH THE CITY ALLOWED TRASH COLLECTED UNDER COMMERCIAL CONTRACTS TO BE DUMPED AT THE BROWNINGFERRIS SITE WMX TO COMPENSATE SAID IT DUMPED LIKE AMOUNTS OF MUNICIPAL TRASH AT ITS OWN OR OTHER DUMPS THUS NEITHER THE CITY NOR BROWNINGFERRIS LOST ANY MONEY UNDER THE ARRANGEMENT THE REASON FOR THE MIXING OF TRASH WAS TO MAKE COLLECTION ROUTES MORE EFFICIENT WMX SAID SOME MUNICIPAL TRASH WAS PICKED UP BY WMX TRUCKS VERY CLOSE TO THE BROWNINGFERRIS DUMP WHILE OTHER CITY WASTE WAS COLLECTED CLOSER TO WMX'S OWN DUMP WE'VE SAID FROM THE START THAT NOTHING IMPROPER TOOK PLACE A WMX SPOKESMAN SAID CONVICTIONS IN THE CASE WOULD HAVE BEEN A BLACK EYE FOR WMX'S HUGE MUNICIPALCOLLECTION BUSINESS IN THE US BECAUSE TRASH FROM ONE CUSTOMER IS DIFFICULT TO DISTINGUISH FROM THAT OF ANOTHER A CERTAIN LEVEL OF TRUST IS REQUIRED IN MOST BIG HAULING AND DISPOSAL CONTRACTS THE SAN JOSE COLLECTION CONTRACT CLEARLY GAVE WMX AN ADDITIONAL EDGE WITH COMMERCIAL CUSTOMERS IN THE AREA ONE THAT IT EMPLOYED BUT IT WAS A LEGAL EDGE WMX SAID BROWNINGFERRIS WHICH HAD LOST OUT ON THE COLLECTION CONTRACT WAS TRULY A SORE LOSER WMX SAID IN COURT PAPERS SEEKING DISMISSAL OF THE CHARGES IT WAS A BROWNINGFERRIS COMPLAINT TO THE CITY AFTER THE COMPANY ALSO LOST OUT ON A COMMERCIALCOLLECTION CONTRACT TO WMX THAT INITIATED THE CASE TRASH FROM THAT COMMERCIAL CUSTOMER WAS DUMPED AT THE BROWNINGFERRIS SITE UNDER THE CITY CONTRACT'S FEE WHICH WAS ABOUT HALF THE MARKET PRICE MORE THAN 80 WITNESSES APPEARED BEFORE A GRAND JURY AND SAN JOSE POLICE FOR WEEKS TAILED WMX GARBAGE TRUCKS IN THE INVESTIGATION A BROWNINGFERRIS SPOKESMAN DECLINED TO COMMENT YESTERDAY 9402070029 940207 CHRYSLER RECALLS NEON CARS TO FIX COMPUTER UNITS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH AFTER BRAGGING ABOUT THE STRICT QUALITY CONTROLS IT HAS IMPOSED ON ITS NEW NEON SMALL CAR CHRYSLER CORP FINDS ITSELF IN THE EMBARRASSING POSITION OF RECALLING FOR REPAIRS ALL OF THE 15000 CARS IT HAS BUILT SO FAR THIS IS THE SECOND RECALL IN THE CAR'S SHORT HISTORY THE PROBLEM INVOLVES WATER LEAKS THAT AFFECT THE CAR'S COMPUTER BRAIN THE RESULT IS THAT SOME NEONS WON'T START A PROBLEM THAT CHRYSLER PREVIOUSLY HAD IDENTIFIED AS THE NO 1 WORRY OF POTENTIAL BUYERS TO CORRECT THE LATEST PROBLEM CHRYSLER IS REPLACING EACH COMPUTER UNIT A SMALL CIRCUIT BOARD AND A CHIP PACKED IN A ZINC DIECAST BOX CALLED THE ENGINE CONTROL MODULE IN ALL THE CARS BUILT SO FAR IT ALSO IS SHUTTING DOWN ITS BELVIDERE ILL PLANT FOR A WEEK AS IT WAITS FOR ACUSTAR ITS OWN SUPPLY DIVISION TO PRODUCE ENGINE CONTROLLERS THAT WON'T LEAK THE RECALL BILL FOR PARTS ALONE COULD BE 15 MILLION INCLUDING LABOR THE COST EASILY COULD DOUBLE AS EXPENSIVE AND POTENTIALLY DAMAGING TO THE CARS' REPUTATION AS THAT COULD BE CHRYSLER IS LOOKING FOR A SILVER LINING IN THE SITUATION ONLY 1300 OF THE CARS HAVE ACTUALLY BEEN SOLD TO RETAIL CUSTOMERS AND NOW CHRYSLER IS TRYING TO USE THE RECALL TO SHOW CUSTOMERS THAT IT WILL BEND OVER BACKWARD TO TREAT THEM WELL CHRYSLER HAS ASKED ITS DEALERS TO PICK THE CARS UP PROVIDE A REPLACEMENT CAR CLEAN THE NEONS AND FILL THEM UP WITH GASOLINE YES WE HAVE A GLITCH SAID BOB MARCELL THE HEAD OF CHRYSLER'S NEON PRODUCTION EFFORT BUT EVERYBODY HAS GLITCHES AND HOW QUICKLY AND HOW POSITIVELY YOU REACT TO THE GLITCHES IS WHAT IS IMPORTANT SOME ANALYSTS AGREED THE MOST IMPORTANT THING AT THE END OF THE DAY IS THAT THE CUSTOMER IS NEVER INCONVENIENCED SAID JOSEPH PHILLIPPI AN ANALYST WITH LEHMAN BROTHERS THEY'RE TRYING TO PULL A SATURN MR PHILLIPPI SAID REFERRING TO THE STERLING REPUTATION THAT GENERAL MOTORS CORP'S SATURN UNIT HAS DEVELOPED THROUGH ITS SOLICITOUS STRAIGHTFORWARD HANDLING OF RECALLS THE EARLIER RECALL OF THE NEON WHICH WENT ON SALE IN EARLY JANUARY INVOLVED A FLAWED BRAKE CYLINDER THAT HAD TO BE REPLACED ON SOME MODELS THIS WEEK'S PLANT SHUTDOWN IS SURE TO FURTHER ANNOY CHRYSLER DEALERS WHO HAVE BEEN COMPLAINING THAT THEY CAN'T GET ENOUGH NEONS 9402070028 940207 GLOBAL VIEW GREENSPAN WILL HAVE MORE TOUGH CALLS TO MAKE BY GEORGE MELLOAN ALAN GREENSPAN TOOK THE UNUSUAL STEP FRIDAY OF ANNOUNCING SOMETHING THE MARKETS SOON WOULD FIND OUT ANYWAY THAT THE FEDERAL RESERVE WAS LETTING SHORTTERM INTEREST RATES CLIMB A LITTLE BIT SINCE THIS WAS ONLY FOUR DAYS AFTER THE FED CHAIRMAN HAD TOLD CONGRESS THAT RATES MIGHT HAVE TO RISE AT SOME POINT YOU MIGHT SAY MR GREENSPAN HAS BEEN PRACTICING THE ART OF PSYCHOLOGICAL PREPARATION SO FAR IT'S WORKING TREASURY SECRETARY LLOYD BENTSEN SAID THE FRIDAY DECISION WHICH KNOCKED 96 POINTS OFF THE DOW WAS NOT UNEXPECTED AND HAD INDEED ALREADY BEEN PROGRAMMED INTO THE ADMINISTRATION'S 1994 ECONOMIC GROWTH ESTIMATES DOES THIS MEAN THAT THE UNITED STATES HAS ENTERED SOME NEW STATE OF BLISS IN WHICH THE FED CAN ADJUST INTEREST RATES IN RESPONSE TO ITS BEST JUDGMENTS WITHOUT CREATING UNDUE EXCITEMENT IN WASHINGTON DON'T BET ON IT THE MILD REACTION WAS BORN OF THE EUPHORIA OF ECONOMIC RECOVERY BUT EUPHORIA IS EPHEMERAL THE FED THE MARKETS AND THE CLINTON ECONOMIC TEAM FACE MORE DIFFICULT TESTS JUST AHEAD MR GREENSPAN TIPPED OFF HIS CONCERNS A WEEK AGO WHEN HE TESTIFIED THAT SHORTTERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE WHAT HE MEANT BY NEUTRAL IS THAT THE FED WOULD HAVE TO ADJUST TO RISING CREDIT DEMAND BY ALLOWING AN INCREASE IN THE BANKING SYSTEM'S INTERNAL MARKET PRICE OF SHORTTERM MONEY IF THE FED HAD KEPT SUPPLYING SUFFICIENT RESERVES TO HOLD THIS FED FUNDS RATE AT 3 IT WOULD HAVE RISKED FLOODING THE ECONOMY WITH MONEY EITHER CREATING A DANGEROUS BUBBLE IN SECURITIES AND REAL ESTATE OR TOUCHING OFF INFLATION SO IT LET FED FUNDS EDGE UP BUT KEPT ITS MORE POLITICALLY SENSITIVE DISCOUNT RATE ON LOANS TO BANKS AT 3 POWERFUL DEFLATIONARY PRESSURES BROUGHT ABOUT PRIMARILY BY REAL ESTATE DECLINES ARE EASING WHILE THEY EXISTED THE FED WAS SPARED THE KIND OF DECISION IT HAD TO TAKE LAST WEEK EARLY IN THIS DECADE IT BROUGHT SHORT RATES DOWN SHARPLY WITHOUT EVEN A GLIMMER OF RENEWED INFLATION IT HAS HELD THEM AT A ROCK BOTTOM 3 FOR OVER A YEAR UP UNTIL FRIDAY IT HAD NOT HAD TO RAISE RATES FOR FIVE YEARS THE SLUGGISH US ECONOMY OF THE EARLY 1990S CASTS DOUBT ON THE THEORY HELD BY ALL POLITICIANS AND MANY ECONOMISTS THAT CHEAP MONEY IS AN INSTANT CURE FOR RECESSION NOT ONLY WERE RATES LOW BUT THE FED WAS ALSO CREATING BASIC MONEY AT A GOOD CLIP CONGRESS AIDED THIS PROCESS IN THE WAY IT LOVES BEST BY GENERATING LARGE NEW MOUNDS OF DEBT FOR THE FED TO BUY FOR A CENTRAL BANK CHAIRMAN THIS WAS HOG HEAVEN NO ONE COULD FAULT MR GREENSPAN FOR NOT DOING HIS BIT FOR THE ECONOMY AND CONGRESS AND YET THE INFLATION RATE STAYED LOW HE WAS WARMLY RECEIVED ON CAPITOL HILL AND AT WHITE HOUSE SOCIAL GATHERINGS AND WAS LOOKED UP TO AS SOMETHING OF A GENIUS MAYBE HE REALLY IS BUT WE'LL KNOW MORE ABOUT THAT IF HE CAN GET THROUGH THE NEXT SEVERAL MONTHS UNSCATHED THERE ARE SOME TROUBLING STRAWS FLOATING AROUND IN THE WIND WITH INFLATION WARNINGS PAINTED ON THEM PRECIOUS METAL PRICES AND COMMODITY FUTURES INDEXES ARE POINTING UPWARD AGAIN TO ADD TO THESE FAINT SIGNALS AMERICA'S PURCHASING AGENTS REPORTED LAST WEEK THAT THEY ALSO ARE SEEING UPWARD PRICE ACTION IN THE GOODS THEY BUY NONE OF THIS SHOULD BE ESPECIALLY SURPRISING GIVEN THE SHARP SPURT IN THE ECONOMY LATE LAST YEAR CONSUMER SPENDING IN 1993 WAS UP 6 FROM THE YEAR BEFORE BUT AS MR GREENSPAN TRIES TO STEER AROUND INFLATION'S SCYLLA HE ALSO HAS A CHARYBDIS TO AVOID ON HIS OTHER FLANK IT'S CALLED A SECURITIES MARKET CRASH IT IS INTERESTING THAT THE DROP IN STOCKS FRIDAY WAS ACCOMPANIED BY A FURTHER SOFTENING OF LONG BONDS A MARKET THAT SHOULD HAVE WELCOMED MOVES AGAINST INFLATION THE DOLLAR FIRMED IN LIGHT OF THIS SCENARIO OF FALLING SECURITIES AND RISING CASH IT IS USEFUL TO LOOK AT WHAT SOME MARKET BEARS HAVE BEEN SAYING THEY HAVE BEEN ASKING WHAT A RESURGENCE OF CREDIT DEMAND FROM THE REAL SECTOR WILL MEAN FOR THE FINANCIAL SECTOR BY THEIR ANALYSIS A LOT OF THE BASE MONEY THE FED HAS BEEN SO GENEROUSLY CREATING HAS BEEN FLOWING INTO SECURITIES IMPORTANTLY BY MEANS OF AN EXPLOSION OF MUTUAL FUNDS AND MAY ALREADY HAVE INFLATED SECURITIES VALUES SOME MONETARIST TYPES SUPPORT THIS THEORY BY NOTING THE CONTRAST BETWEEN THE FED'S HIGH RATE OF BASE MONEY CREATION AND THE SLOW GROWTH IN BROAD MONEY THE HIGHLY LIQUID FUNDS IN CHECKING AND SAVINGS ACCOUNTS BUT THEN IT IS NO SECRET THAT IT HAS BEEN FAR MORE ATTRACTIVE FOR SAVERS TO PUT THEIR MONEY INTO SECURITIES THAN TO LEAVE IT IN BANKS OR MONEY MARKET INSTRUMENTS AT THE LOW RETURNS THE FED HAS DECREED THE BOTTOM LINE OF THIS FORM OF ANALYSIS IS THAT THE FED DURING ALL THAT TIME WHEN IT WAS DWELLING IN CENTRAL BANKING NIRVANA MAY HAVE BEEN CREATING A SECURITIES MARKET BUBBLE NOW THAT THE FED IS BEING FORCED TO LET SHORTTERM RATES RISE THERE IS A RISK THAT A REVERSE FLOW WILL BEGIN OUT OF SECURITIES AND BACK INTO BANKS AND MONEY MARKET INSTRUMENTS THEREBY LETTING THE AIR OUT OF SECURITIES PRICES IF OUT OF FEAR OF JUST THAT THE FED REFUSES TO RAISE SHORT RATES SUFFICIENTLY WILL IT BRING ON THE INFLATION THAT MAY BE LURKING IN THE WINGS THE CONSEQUENCES OF THAT COULD BE EVEN MORE SERIOUS FOR THE ECONOMY AND IT WON'T HELP THE SECURITIES MARKET MUCH EITHER AS THE EXPERIENCE OF THE 1970S SHOWED BUT THE FED WILL FACE THE USUAL POLITICAL PRESSURES TO KEEP RATE RAISES MODEST MR CLINTON MR BENTSEN AND CONGRESS WILL NOT BE AS SANGUINE AS THEY WERE LAST WEEK IF MR GREENSPAN STARTS RAISING INTEREST RATES SHARPLY THIS YEAR IN ADVANCE OF A CONGRESSIONAL ELECTION NOW MAYBE ALL THIS IS JUST THE KIND OF SCARY TALK YOU ALWAYS HEAR FROM MARKET BEARS CASSANDRATYPE WARNINGS ALWAYS SOUND A BIT OFFKEY WHEN SO MANY THINGS ARE LOOKING RIGHTLOW INFLATION RENEWED ECONOMIC GROWTH A HIGH DOW AND MAYBE EVEN A FEW SIGNS OF STIRRINGS IN THE ECONOMIES OF EUROPE AND JAPAN ALTHOUGH DON'T BET HEAVILY ON THAT YET ON THE SURFACE THE FINANCIAL SECTOR LOOKS STRONG CERTAINLY BANKS HAVE MADE AN IMPRESSIVE RECOVERY THANKS IN PART TO MR GREENSPAN'S ADEPT MANAGEMENT OF MONETARY POLICY BUT THE BOND MARKET WAS FALTERING JUST A BIT EVEN BEFORE LAST WEEK'S LITTLE JOLT THERE ARE THOSE WISPS OF HEAT EMANATING FROM THE COMMODITY MARKETS AND FINALLY THERE IS MR GREENSPAN HIMSELF ADMINISTERING PSCYHOLOGICAL PREPARATION TO POLITICIANS IT IS TO BE HOPED THAT THE MILD RESPONSE HE HAS RECEIVED SO FAR WILL REMAIN SO IF HE HAS TO ACT MORE VIGOROUSLY THAN SOME OF HIS FANS NOW EXPECT 9402070026 940207 ECONOMY HEALTHY RISE IN FACTORY EMPLOYMENT SHOWS LABOR MARKET ON SOLID FOOTING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY'S STRING OF ENCOURAGING JOB GAINS WAS INTERRUPTED IN JANUARY BUT A HEALTHY RISE IN FACTORY EMPLOYMENT SUGGESTS THE LABOR MARKET IS STILL ON SOLID FOOTING THE LABOR DEPARTMENT SAID THAT ONLY 62000 JOBS WERE CREATED LAST MONTH THAT'S A BIG DIFFERENCE FROM THE NEARLY 200000 JOBS THE ECONOMY AVERAGED IN THE FOUR MONTHS BEFORE BUT THE FRIGID TEMPERATURES EXPERIENCED ACROSS MUCH OF THE NATION HELD DOWN EMPLOYMENT LAST MONTH ACCORDING TO KATHERINE ABRAHAM COMMISSIONER OF THE DEPARTMENT'S BUREAU OF LABOR STATISTICS EVEN SO THE MANUFACTURING SECTOR MANAGED TO GAIN 26000 JOBS CONTINUING GROWTH STARTED IN OCTOBER HOURS OF WORK AND EARNINGS BOTH INCREASED THE UNEMPLOYMENT RATE WHICH WAS REPORTED AT 64 OF THE WORK FORCE IN DECEMBER REGISTERED 67 LAST MONTH BUT OFFICIALS CAUTIONED THAT THE BIG INCREASE IN THE RATE SHOULDN'T BE PERCEIVED AS A DETERIORATION IN JOB CONDITIONS JANUARY'S EMPLOYMENT REPORT WAS THE FIRST UNDER A NEW SURVEY DESIGN WITH DIFFERENT QUESTIONS TO WHICH THE ANSWERS ARE RECORDED ON COMPUTERS IT MAY BE MARCH BEFORE THERE'S A GOOD PICTURE OF HOW THE LABOR MARKET IS SHAPING UP THIS YEAR AS THE LOS ANGELES EARTHQUAKE COULD DISTORT FEBRUARY EMPLOYMENT THE COLD HAD THE MOST EFFECT ON SERVICE JOBS WHICH SERVED AS A PRIMARY SOURCE OF JOB GROWTH FOR NEARLY TWO YEARS BUT WAS FLAT IN JANUARY RETAIL FINANCE INSURANCE AND REAL ESTATE ALL ADDED FEWER JOBS IN JANUARY THAN IN DECEMBER CONSTRUCTION JOBS FELL FOR THE SECOND CONSECUTIVE MONTH BUT ANALYSTS EXPECT INCREASES IN COMING MONTHS TO KEEP UP WITH GROWTH IN THE HOUSING SECTOR WEATHER ASIDE THE EMPLOYMENT FIGURES WERE ENCOURAGING AND THE FEDERAL RESERVE DEFINITELY DIDN'T VIEW THE SMALL JOB GAINS AS A SIGN THE ECONOMY WAS HEADED FOR TROUBLE AS IT RAISED SHORTTERM INTEREST RATES MIDMORNING FRIDAY AFTER THE EMPLOYMENT FIGURES CAME OUT THERE IS A LOT OF STRENGTH HERE SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY THE GROWTH IN MANUFACTURING JOBS CENTERED IN DURABLEGOODS INDUSTRIES SUCH AS AUTOS AND FURNITURE THIS SUGGESTS THAT WE MAY WELL HAVE TURNED THE CORNER ON THE MANUFACTURING JOBS FRONT SAID LAURA TYSON HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IN ADDITION NONFARM HOURS CLIMBED 09 AND MANUFACTURING HOURS WERE UP 03 THOSE WHO DID COME TO WORK CERTAINLY WORKED A LOT HARDER SAID RICHARD BERNER CHIEF ECONOMIST OF MELLON BANK IN PITTSBURGH AVERAGE HOURLY EARNINGS SHOT UP 08 THE LARGEST MONTHLY GAIN SINCE SEPTEMBER 1983 THE LATEST UNEMPLOYMENT REPORT ALSO CHANGED THE DEFINITION OF DISCOURAGED WORKERS AND FOUND FEWER OF THEM AS A RESULT THE FIGURE HAS BEEN RUNNING AT ABOUT 11 MILLION FOR THE PAST TWO YEARS BUT THE NEW REPORT PUTS IT BEFORE SEASONAL ADJUSTMENT AT 600000 A DISCOURAGED WORKER IS ONE WHO WANTS A JOB BUT CAN'T FIND ONE THE NEW DEFINITION EXCLUDES THOSE WHO HAVEN'T LOOKED FOR WORK IN THE PAST YEAR ALSO THE NUMBER OF PEOPLE EMPLOYED PART TIME FOR ECONOMIC REASONS WAS ABOUT ONE MILLION LOWER IN JANUARY THAN DECEMBER BECAUSE RESPONDENTS NOW MUST INDICATE THEY WANTED AND WERE AVAILABLE FOR FULLTIME WORK SEPARATELY THE FEDERAL RESERVE REVISED CAPACITYUTILIZATION RATES DATING BACK TO 1990 AND INDUSTRIALPRODUCTION FIGURES DATING BACK TO 1991 THE REVISIONS SHOW THAT INDUSTRY WAS USING SLIGHTLY LESS OF ITS CAPACITY THAN PREVIOUSLY THOUGHT IN 1993 THE FED SAID INDUSTRY OPERATED AT 815 OF CAPACITY RATHER THAN THE 819 ORIGINALLY REPORTED THERE WERE SMALLER REVISIONS IN EARLIER YEARS TO 797 IN 1992 791 IN 1991 AND 821 IN 1990 INDUSTRIAL PRODUCTION FOR 1993 WAS REVISED TO SHOW A 41 INCREASE RATHER THAN 42 FOR THE PREVIOUS TWO YEARS THE FIGURES WEREN'T CHANGED UP 23 IN 1992 AND DOWN 19 IN 1991 THE REVISIONS INCORPORATE MORE COMPREHENSIVE MONTHLY SOURCE DATA RESULTS OF A REVIEW OF PRODUCTIVITY RELATIONSHIPS AND UPDATED SEASONAL FACTORS FIGURES IN THE EMPLOYMENT REPORT ARE ADJUSTED FOR SEASONAL VARIATIONS EXCEPT AS NOTED HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9402070025 940207 WORLD MARKETS CREDITTIGHTENING MOVE BY FED MAY WELL COOL SCENARIO POWERING STOCK MARKET RALLIES IN ASIA BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE US CENTRAL BANK'S DECISION TO NUDGE UP SHORTTERM INTEREST RATES MARKS A POSSIBLE TURNING POINT IN A STORY THAT HAS BEEN POWERING THE RALLIES ON ASIAN STOCK MARKETS ANALYSTS SAY THROUGHOUT LAST YEAR LOW INTEREST RATES IN THE US ENCOURAGED AMERICAN INVESTORS TO SHIFT LARGE SUMS OF MONEY FROM SECURITIES THERE INTO HIGHFLYING ASIAN STOCKS THAT WAVE OF CASH ACCELERATED MARKET RALLIES THROUGHOUT THE REGION AND BY THE END OF LAST YEAR HAD DRIVEN STOCK MARKETS ACROSS ASIA INTO RECORD TERRITORY ON FRIDAY THOUGH THE FED APPEARED TO THROW A WRENCH INTO THE WORKS BY PUSHING THE FEDERAL FUNDS RATE AT WHICH BANKS LEND TO ONE ANOTHER UP 025 PERCENTAGE POINT TO 325 THAT WAS THE FIRST RISE IN THE RATE SINCE 1989 ON THE ONE HAND ANALYSTS IN HONG KONG VIEW THE ACTION AS SYMBOLIC BECAUSE THE INCREASE WAS SO SMALL ANY DECLINES IN ASIAN STOCKS TODAY ARE LIKELY TO BE ONLY KNEEJERK REACTIONS THEY BELIEVE THIS RISE IS REALLY JUST A WARNING SHOT SAYS ALAN BUTLERHENDERSON DIRECTOR OF ASIAN STRATEGY AT BARING SECURITIES LTD HE EXPECTS ASIAN STOCK MARKETS TO GENERALLY KEEP RISING DURING THE NEXT FEW MONTHS BUT ON THE OTHER HAND STOCK INVESTORS SHOULD BE PREPARING TO LOOK FOR EXIT POINTS OR WHAT SHARES THEY WANT TO SELL FOR A QUICK RETREAT MR BUTLERHENDERSON SAYS THE REAL CRUNCH COULD COME IN THE SECOND HALF HE BELIEVES BY THEN THE US RECOVERY MAY BE PICKING UP STEAM AND JAPAN AND GERMANY PROBABLY WILL HAVE SEEN THE NADIR OF THEIR RECESSIONS UNDER SUCH CONDITIONS THE FED COULD RAISE SHORTTERM RATES AS MUCH AS 15 PERCENTAGE POINTS SAYS MR BUTLERHENDERSON IN THAT CASE THE VULNERABLE MARKET WILL BE HONG KONG HE SAYS THE MONETARY PEG TYING HONG KONG'S DOLLAR FIRMLY TO THE US DOLLAR MAKES MR GREENSPAN'S MONETARY POLICY HONG KONG'S MONETARY POLICY HE SAYS REFERRING TO THE FED'S CHAIRMAN ALAN GREENSPAN SO INTEREST RATES WOULD HAVE TO RISE SHARPLY IN HONG KONG TOO AFTER FOUR YEARS OF STRONG ECONOMIC GROWTH FUELED BY THE INVESTMENT BOOM IN CHINA HONG KONG'S ECONOMY IS EXTREMELY TIRED HE SAYS IN PARTICULAR HIGH INFLATION THREATENS TO EXHAUST LOCAL CONSUMER SPENDING MEANWHILE HONG KONG COMPANIES' EARNINGS GROWTH IS INCREASINGLY DEPENDENT ON CRAZY CHURNING IN THE PROPERTY MARKET HE SAYS THE COMBINATION MAKES CORPORATE HONG KONG PARTICULARLY VULNERABLE EVEN TO FEARS OF ANY CREDIT CRUNCH RISING INTEREST RATES DO IMPLY THAT THE EARNINGS CYCLE IN HONG KONG WILL BE TIRING A BIT WARNS ANDREW HALL RESEARCH DIRECTOR OF MORGAN GRENFELL ASIA SECURITIES HK LTD IT WILL BE INCREASINGLY DIFFICULT FOR COMPANIES TO GET 20 TO 30 COMPOUNDED EARNINGS GROWTH WE WILL HAVE TO GET USED TO COMPOUNDED EARNINGS GROWTH IN THE TEENS HE ADDS TOKYO STOCKS ROSE FRIDAY PARTLY BECAUSE OF ARBITRAGELINKED BUYING DESPITE JAPANESE POLITICAL WRANGLING ABOUT TAX POLICY LONDON SHARES FELL SOCKED BY INTERESTRATE WORRIES AFTER THE FED TIGHTENED CREDIT WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11664 DOWN 163 OR 138 REFLECTING DROPS IN MARKETS IN ALL REGIONS REALESTATE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14785 UP 055 OR 037 WITH HKR INTERNATIONAL OF HONG KONG POSTING AN 882 GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT 10424 DOWN 455 OR 418 WITH CYPRUS AMAX OF THE US SLIDING 1043 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 7521 POINTS THURSDAY ROSE 12661 TO 2030143 ALSO THE INTRADAY HIGH IN TRADING MONDAY THE NIKKEI FELL 26253 POINTS TO CLOSE THE MORNING SESSION AT 2003890 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 370 MILLION SHARES DOWN FROM 5409 MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS 609422 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 1493 POINTS THURSDAY GAINED 207 TO 161480 INVESTORS CONTINUED TO TAKE PROFITS FROM RECENT HUGE GAINS AND STOCKS FELL FURTHER DURING THE SESSION BECAUSE OF FUTURESLED TRADING REFLECTING JAPANESE POLITICAL UNCERTAINTIES ABOUT ECONOMYSTIMULATING MOVES BEFORE ARBITRAGELINKED BUYING AND DEALERS BUYING FOR THEIR OWN ACCOUNTS HELPED STOCKS RECOUP LOSSES AND END HIGHER IN LONDON THE FTSE 100SHARE INDEX LOST 161 POINTS TO 34754 NEAR THE DAY'S LOWS THE FT 30STOCK INDEX DECLINED 248 POINTS TO 26692 VOLUME WAS 7851 MILLION SHARES COMPARED WITH 109 BILLION SHARES IN THE PREVIOUS SESSION SHARES OPENED LOWER AMID CAUTION ABOUT US ECONOMIC DATA AND CLIMBED ON THE US UNEMPLOYMENT REPORT THEN TUMBLED AFTER THE FED PUSHED UP SHORTTERM INTEREST RATES WALL STREET ALSO WAS VOLATILE INFLUENCING LONDON STOCKS PRESSURED TOO BY THE US DOLLAR'S STRENGTHENING AGAINST THE GERMAN MARK WHICH COULD HURT CHANCES OF GERMANY LOWERING ITS INTEREST RATES AND ALLOWNG BRITAIN TO FOLLOW SUIT IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1347 POINTS TO 213825 IN TECHNICALLY DRIVEN TRADING AS MANY INVESTORS WERE SIDELINED DISAPPOINTED BY GERMANY'S DECISION THURSDAY TO LEAVE INTEREST RATES UNCHANGED IN HONG KONG STOCKS RALLIED 26 LED BY THE BANKING SECTOR ON STRONG EARNINGS EXPECTATIONS IN MEXICO CITY PRICES INCHED UP TO ANOTHER NEW HIGH AFTER FALLING ON PROFITTAKING RALLYING AND THEN RETREATING AS WALL STREET SANK 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 9402070024 940207 US PHYSICAL THERAPY EXPANSION HOUSTON US PHYSICAL THERAPY INC SAID IT WILL OPEN TWO FREESTANDING OUTPATIENT CLINICS NEXT MONTH ONE IN ATLANTA AND THE OTHER IN PLANO TEXAS WITH THE TWO NEW CLINICS THE COMPANY SAID IT ALONG WITH PARTNERS WILL OPERATE 28 OUTPATIENT CLINICS IN 13 STATES 9402070023 940207 MADEMOISELLE'S NEW EDITOR IS GUIDING MAGAZINE'S RETURN TO THE MAINSTREAM BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN ELIZABETH CROW TOOK OVER AS EDITOR OF MADEMOISELLE LAST OCTOBER SHE FOUND HERSELF IN AN OFFICE THAT LOOKED LIKE A DOWNTOWN DISCO WITH A CHANDELIER BLUE WALLS AND RED VELVET CURTAINS NOW THE WALLS ARE WHITE AND THE SUNNY NEAT ROOM LOOKS LIKE AN OFFICE AGAIN IT'S A RADICAL CHANGE BACK TO A TRADITIONAL LOOK THE SAME SHIFT SHE IS MAKING IN THE MAGAZINE THE MARCH ISSUE WHICH HITS NEWSTANDS NEXT WEEK IS HER FIRST FULL EFFORT AS EDITOR IN CHIEF AND IT HARKS BACK TO MADEMOISELLE'S PAST AS A MAINSTREAM MAGAZINE FOR YOUNG WOMEN FOUNDED IN 1935 MADEMOISELLE HAS LONG BEEN A KEY PROPERTY IN THE CONDE NAST STABLE OF GLOSSY LIFESTYLE MAGAZINES OWNED BY THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC ALONG WITH GLAMOUR VOGUE SELF GQ AND GOURMET MADEMOISELLE SUFFERED AN IDENTITY CRISIS OVER THE LAST YEAR HOWEVER AS MS CROW'S SHORTLIVED PREDECESSOR GABE DOPPELT TRIED TO REMAKE IT INTO A HIP CUTTINGEDGE FASHION AND LIFESTYLE MAGAZINE THE CHANGES RADICALLY ALTERED THE LOOK AND CONTENT OF THE MAGAZINE ALIENATING READERS ADVERTISERS AND CONDE NAST CHAIRMAN SI NEWHOUSE JR MS DOPPELT LEFT HER POST LAST FALL AFTER ONLY NINE ISSUES ALTHOUGH MADEMOISELLE'S PAGES SHRANK ONLY 2 IN 1993 TO 1275 PAGES THE MAGAZINE'S PUBLISHER SAYS MS DOPPELT'S OCTOBER AND NOVEMBER ISSUES SO TURNED OFF ADVERTISERS THAT AD PAGES FOR THE FIRST QUARTER OF 1994 FELL 18 PAGES ARE EXPECTED TO BE UP FOR APRIL MS CROW SAYS SHE WANTS TO BOOST AD PAGES AT MADEMOISELLE WHICH TRAILS COSMOPOLITAN AND GLAMOUR BY HUNDREDS OF PAGES ANNUALLY MS CROW HAS ABANDONED THE GRUNGE LOOK AND REBELLIOUS ONE THE MAGAZINE BOASTED UNDER MS DOPPELT WHOSE FIRST ISSUE CAME OUT LAST MARCH INSTEAD OF ARTICLES ON LESBIANISM AND HAIR DYE AS A POSSIBLE CAUSE OF CANCER THERE ARE ARTICLES ON CELIBACY AND GOING GOING BLONDE INITIAL REACTIONS TO MS CROW'S REMAKE ARE LARGELY POSITIVE AND SHE IS BEGINNING TO DRAW SOME NEW ADVERTISERS BUT THERE ARE SOME IN FASHION AND BEAUTY CIRCLES WHO FEAR SHE MAY ERR IN MAKING THE MAGAZINE TOO MASSMARKET FORMULAIC AND BLAND MS CROW WHO IS 47 YEARS OLD COMPARED WITH MS DOPPELT'S 33 HAS HAD TO ENDURE SNOTTY TRADE MAGAZINE REPORTS THAT SHE'S TOO OLD AND FRUMPY TO KNOW WHAT HIP WOMEN IN THEIR 20S WANT AND THERE WERE RUMORS WHICH SHE DENIES THAT MADEMOISELLE HAS LATELY HAD TROUBLE ATTRACTING TOP MODELS AND PHOTOGRAPHERS MS CROW SAYS THE MAGAZINE MIGHT HAVE BEEN MORE HIP BEFORE BUT SHE THINKS IT MADE A LOT OF YOUNG WOMEN FEEL INSECURE WHEREAS SHE WANTS TO BE REASSURING SHE SAYS SHE HASN'T BANNED SUPERSHORT SKIRTS AND SEETHROUGH BLOUSES IN FASHION SPREADS BECAUSE SHE'S A PRUDE BUT BECAUSE YOUNG WOMEN IN FOCUS GROUPS SAY THESE ARE CLOTHES THEY WOULD NEVER WEAR TO MAKE THE MAGAZINE MORE RELEVANT AND PRACTICAL SHE HAS INCREASED THE NUMBER OF FIRSTPERSON FEATURES AND ADDED SIX MONTHLY Q & A PAGES ON TOPICS FROM SEX TO MONEY I THINK THE REMAKE IS BRIGHTER MORE OPTIMISTIC SAYS ELLIOT LASKY VICE PRESIDENT MARKETING FOR MATRIX ESSENTIALS INC A LINE OF BEAUTY PRODUCTS SOLD IN HAIR SALONS MATRIX IS ADVERTISING IN THE APRIL ISSUE ITS FIRST TIME IN THE MAGAZINE WE CONSIDERED ADVERTISING IN MADEMOISELLE BEFORE BUT THE CHANGES HELPED SWING OUR DECISION SAYS MR LASKY BEFORE IT WAS TOO DOOMANDGLOOM AND DIDN'T HAVE AS STRONG A FOCUS ON BEAUTY SOME CURRENT ADVERTISERS HAVEN'T UPPED THEIR PAGES BUT SEEM FAVORABLY IMPRESSED BY MS CROW'S ALTERED FOCUS TO GET TO THEIR GOAL OF TWO MILLION CIRCULATION FROM THE CURRENT 11 MILLION THEY HAVE TO BROADEN THE MAGAZINE SAYS ARIE KOPELMAN CHAIRMAN OF CHANEL SA MY REACTION IS TO WAIT AND SEE HOW THEY DO BUT MS CROW DOES SEEM TO HAVE A REAL VISION OF WHAT THE BOOK WILL LOOK LIKE AND BE ABOUT MS CROW'S TRACK RECORD INCLUDES A SUCCESSFUL RELAUNCH OF GRUNER & JAHR USA PUBLISHING'S TEEN MAGAZINE YM WHICH GREW IN CIRCULATION FROM 835000 IN 1989 TO 19 MILLION IN 1993 AND SHE HAS THE SUPPORT OF MR NEWHOUSE IN HER STRATEGY TO BOOST MADEMOISELLE'S FORTUNES SHORTLY AFTER SHE STARTED SAYS MS CROW SHE TOLD MR NEWHOUSE THAT SOME PEOPLE ARE ACTING LIKE MASS IS A DIRTY WORD IN RESPONSE TO HER PLANS TO BRING MADEMOISELLE BACK TO A MAINSTREAM AUDIENCE HE REPLIED SHE SAYS WELL IT SOUNDS GOOD TO ME 9402070022 940207 WHO'S NEWS SITHE ENERGIES INC SITHE ENERGIES INC NEW YORK ROSALIE J WOLF 52 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION A NEW POSITION AT THIS ELECTRIC POWER PLANT COMPANY MS WOLF WAS MOST RECENTLY MANAGING DIRECTOR AT BANKERS TRUST CO'S MERCHANT BANKING OPERATION AND COHEAD OF BT INVESTMENT PARTNERS INC 9402070021 940207 LEISURE & ARTS BOOKSHELF A RUSSIAN HOW THE WEST WAS WON' BY DAVID SHRIBMAN FOR GENERATIONS HISTORIANS AND SELFPROCLAIMED OBSERVERS OF THE AMERICAN SCENE HAVE HELD THE CONVICTION THAT THE WEST NOT ONLY THE ACTUAL RUGGED VASTNESS BEYOND THE MISSISSIPPI BUT ALSO THE VERY IDEA OF ALL THAT SPACE WAS ONE OF THE DEFINING ELEMENTS OF THE AMERICAN CHARACTER NOW COMES THE ARGUMENT THAT SIBERIA MORE VAST MORE RUGGED AND QUITE A BIT COLDER PLAYED THE SAME ROLE FOR RUSSIA THIS ARGUMENT IS AT THE CENTER OF THE CONQUEST OF A CONTINENT SIBERIA AND THE RUSSIANS RANDOM HOUSE 512 PAGES 30 W BRUCE LINCOLN'S LATEST VOLUME ON RUSSIA MR LINCOLN WHO HAS WRITTEN ON THE ROMANOVS AND THE RUSSIAN CIVIL WAR HAS PRODUCED SOMETHING OF A RUSSIAN ANALOGUE TO HOW THE WEST WAS WON THE SHORT ANSWER IS WITH DIFFICULTY THE REAL ANSWER IS NOT COMPLETELY THE SIZE AND SCALE OF SIBERIA ARE ALMOST UNIMAGINABLE IT STRETCHES FROM THE URALS TO THE BERING SEA AND ENCOMPASSES SOME TWO MILLION SQUARE MILES OF SPACE MORE THAN THE ENTIRE US MR LINCOLN DELIGHTS IN NOTING FOR EXAMPLE THAT LAKE BAIKAL DROPPED IN THE MIDDLE OF SIBERIA IS BIGGER THAN BELGIUM THE REGION INCLUDES A THIRD OF THE WORLD'S IRON A QUARTER OF ITS TIMBER DIVERSE AND MONOTONOUS SINISTER AND ROMANTIC RICH AND IMPOVERISHED SIBERIA TO THIS DAY REMAINS A VIRTUAL CONTINENT UNTO ITSELF IN WHICH NATURE AND HISTORY HAVE JUXTAPOSED AN ENDLESS ARRAY OF CONTRADICTIONS AND OPPOSITES HE WRITES THIS STORY INCLUDES GENGHIS KHAN WHO SENT THE MONGOLS WARRING INTO RUSSIA IVAN THE TERRIBLE WHO CONQUERED SIBERIA FOR RUSSIA PETER THE GREAT WHO SUPPORTED SCIENTIFIC EXPEDITIONS AND MINING ENTERPRISES AND MIKHAIL GORBACHEV WHOSE GLASNOST POLICY PROMPTED A NEW SENSE OF SIBERIAN NATIONALISM IT IS ALSO THE STORY OF MILLIONS OF SOULS WHO THEMSELVES WERE CONQUERED BY SIBERIA VAST RICHES AND GREAT MISERY OFTEN INTERTWINED MARK THIS REGION THE WEALTH OF KOLYMA WHOSE GOLD FIELDS CREATED LEGENDS WAS MINED BY SLAVE LABORERS UNTOLD HUNDREDS OF WHOM DIED DIGGING WITH THEIR HANDS TODAY SIBERIA STILL HAS THE MINERALS BUT IS NO LONGER A VAST PRISON YARD NOTHING ABOUT SIBERIA HAS EVER ENCOURAGED ANYONE TO THINK SMALL THE LAND WAS SO BIG AND THE DISTANCES SO GREAT THAT EARLY FUR TRADERS COULD COUNT ON ONLY TWO SIBERIAN TRIPS A DECADE OR ABOUT HALF A DOZEN A LIFETIME LATER THE CENTRAL PLANNERS OF THE KREMLIN ESTABLISHED COLLECTIVE FARMS IN SIBERIA THAT WERE SO BIG THEY AVERAGED 250 SQUARE MILES THAT WORKERS HAD TO CAMP OUT FOR WEEKS AT A TIME SO THEY COULD BE WITHIN A DAY'S WALK OF THEIR CROPS THE CONSTRUCTION OF THE TRANSSIBERIAN RAILROAD INVOLVED 70000 MEN WHO PUSHED AROUND 77 MILLION CUBIC FEET OF EARTH EVEN THE INDUSTRIAL DISPUTES WERE OUTSIZED THE LENA GOLDFIELDS WORKERS WHO LIVED IN ICY SQUALOR WHILE MINING SOME 40 TONS OF GOLD A YEAR COURTED TRAGEDY IN THEIR 1912 STRIKE FOR BETTER WORKING CONDITIONS SOME 250 MEN WERE KILLED ANOTHER 270 WOUNDED PUBLICHEALTH OFFICIALS LOOKING IN ON THE TRANSSIBERIAN RAILROAD FOUND THAT IT WAS IMPOSSIBLE TO LIVE UNDER SUCH CONDITIONS AND RETAIN ANY SHRED OF HUMAN DIGNITY PETER THE GREAT AND STALIN KHRUSHCHEV AND BREZHNEV ENVISAGED SIBERIA AS A BASE FOR BUILDING A HUGE INDUSTRIAL MACHINE CZARS AND COMMISSARS SAW IT AS THE PERFECT PRISON THE PRICE PROVED HORRIFYING ENVIRONMENTAL SCARS SICK CHILDREN MILLIONS OF TONS OF INDUSTRIAL POLLUTANTS AND A STANDARD OF LIVING THAT WAS SCARCELY BETTER THAN IN THE DAYS OF THE CZARS THE PRICE OF SIBERIA'S ROLE AS PRISON TO A NATION IS HARDER TO QUANTIFY YET PROBABLY IMMEASURABLY HIGHER BANISHMENT TO SIBERIA USUALLY MEANT DEATH SOONER OR LATER IN CZARIST DAYS PRISONERS SOME OF WHOM WERE BRANDED ON THEIR FACES WERE BEATEN WITH WHIPS OUTFITTED WITH LEADWEIGHTED LASHES THEIR NUMBERS INCLUDED A SMALL PERCENTAGE OF WOMEN OFTEN ABUSED AND RAPED DOSTOEVSKI HIMSELF A VETERAN OF THE CAMPS WROTE THAT THEY PRODUCED COMPLETE MORAL DEGRADATION ABSOLUTE DEPRAVITY AND INSOLENT BASENESS MR LINCOLN ESTIMATES THAT ONE ADULT MALE IN 10 IN THE OLD SOVIET UNION WAS IN LABOR CAMPS DURING THE STALIN YEARS SOME PRISONERS WERE WORKED TO DEATH SOME SIMPLY VEGETATED MINERALS WERE PULLED FROM THE EARTH TREES FELLED AND ROADS SCULPTED BUT MEN DIED AT ASTONISHING RATES THERE WAS AND IS SOMETHING ABOUT THE LAND OF SIBERIA THAT BRINGS OUT THE BRUTAL IN MEN PERHAPS IT IS THE COLD PERHAPS THE EMPTINESS PERHAPS EVEN THE FEELING THAT IT IS SO VERY FAR FROM CIVILIZATION IT WAS ALWAYS THIS WAY OFFICERS OF THE CZARS DELIGHTED IN TORTURING NATIVES AS A MATTER OF COURSE ACCORDING TO MR LINCOLN ONE MILITARY GOVERNOR OF IAKUTSK HANGED 23 CHIEFS RUSSIA TODAY REMAINS AN UNFINISHED COUNTRY A LOOK AT THE NEWSPAPER WILL PROVE THAT AND SIBERIA IS SO IMPORTANT TO THE RUSSIAN PSYCHE THAT THE NATION WILL NOT BE FINISHED UNTIL SIBERIA IS BROUGHT TO HEEL THE SCARS OF THE PRISONS REMOVED THE ENVIRONMENTAL RAVAGES HEALED MR LINCOLN IS RIGHT IN BELIEVING THAT RUSSIA'S GREATEST BATTLE IS NOT YET OVER NOR IS IT CLOSE TO BEING WON MR SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9402070020 940207 MARKETING & MEDIA ROGERS CITING CONCERNS ABOUT STAKE DELAYS PLAN TO BID FOR MACLEAN HUNTER BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROGERS COMMUNICATIONS INC DELAYED ITS PLAN TO MAKE A MULTIBILLIONDOLLAR BID TO ACQUIRE MACLEAN HUNTER LTD CITING UNCERTAINTIES RELATED TO A BLOCK OF THE TARGET COMPANY'S STOCK INDIRECTLY HELD BY MACLEAN HUNTER MACLEAN HUNTER MEANWHILE SAID IT IS TALKING TO SEVERAL POSSIBLE BUYERS ABOUT MANY PARTS OF MACLEAN HUNTER RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OFFICER DECLINED TO NAME THEM OR SAY IF THE CABLE TELEVISION AND PUBLISHING COMPANY HAS DISCUSSED AN OUTRIGHT TAKEOVER BY A COMPANY OTHER THAN ROGERS ROGERS COMMUNICATIONS HAD BEEN EXPECTED TO ANNOUNCE TERMS OF AN OFFER AFTER A BOARD MEETING FRIDAY EARLIER LAST WEEK ROGERS HAD SAID IT PLANNED TO MAKE AN OFFER FOR MACLEAN IN A BID TO CONTROL A THIRD OF THE CANADIAN CABLE TELEVISION MARKET AT THE TIME ROGERS WHICH ALSO HAS INTERESTS IN TELECOMMUNICATIONS SAID IT WOULDN'T OFFER TO BUY THE 363 MILLION SHARES OR 17 STAKE INDIRECTLY HELD BY MACLEAN HUNTER AT CURRENT MARKET PRICES A PURCHASE OF ALL MACLEAN HUNTER STOCK INCLUDING THOSE 363 MILLION SHARES AND THE 149 MILLION SHARES ROGERS CAN PURCHASE FROM ITS OWN PRESIDENT EDWARD ROGERS WOULD HAVE A VALUE OF ABOUT 368 BILLION CANADIAN DOLLARS US277 BILLION IF ROGERS DOESN'T BUY THE 363 MILLION SHARES THE REST OF MACLEAN HUNTER WOULD BE VALUED AT C304 BILLION ROGERS WHOSE BOARD FRIDAY APPROVED IN PRINCIPLE A STRATEGIC MERGER WITH MACLEAN SAID IT WILL APPLY TO THE ONTARIO SECURITIES COMMISSION FOR CONFIRMATION THAT IT CAN PROCEED WITH A BID FOR MACLEAN HUNTER WITHOUT OFFERING TO BUY THE 363 MILLION SHARES COMMISSION CHAIRMAN ED WAITZER SAID A HEARING IS LIKELY BUT HE DIDN'T KNOW HOW LONG IT WOULD LAST MACLEAN HUNTER HAS HELD THE SHARES INDIRECTLY THROUGH A SUBSIDIARY SINCE THE MID1970S WHEN A FORMER CONTROLLING SHAREHOLDER DONALD HUNTER SET UP THE ARRANGEMENT TO ADD STABILITY IN THE EVENT OF A TAKEOVER BID SAID MR OSBORNE THE ARRANGEMENT CANNOT PREVENT A TAKEOVER IT WAS INTENDED TO BUY TIME FOR MACLEAN HUNTER'S MANAGEMENT AND DIRECTORS TO EXPLORE OPTIONS MR OSBORNE SAID ROGERS COMMUNICATIONS VICE CHAIRMAN PHILIP LIND WOULDN'T SAY IF THE COMPANY WOULD STILL BID FOR MACLEAN HUNTER IF IT ISN'T ALLOWED TO EXCLUDE THE SHARES HE WOULDN'T ELABORATE ON WHY ROGERS WON'T PROCEED UNDER CURRENT CIRCUMSTANCES BUT ONE PERSON FAMILIAR WITH THE SITUATION SAID ROGERS IS RELUCTANT PARTLY BECAUSE IT IS WORRIED THAT IT COULD BE STUCK WITH A SIZABLE CAPITAL GAINS TAX BILL ON THE SHARES SUCH A BILL COULD COVER GAINS SINCE THE SHARES WERE FIRST PUT IN THE HANDS OF THE MACLEAN HUNTER UNIT MACLEAN HUNTER'S STOCK PRICE HAS JUMPED C375 OR 27 TO C1750 IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE SINCE ROGERS' PLANS WERE FIRST ANNOUNCED WEDNESDAY WHILE ROGERS' SHARES HAVE SKIDDED C2375 OR 11 TO C19875 ANALYSTS SAID INVESTORS ARE SPECULATING THAT OTHER COMPANIES MIGHT BID FOR MACLEAN HUNTER BUT ADDED THAT THE LIST IS SHORT ANY CHALLENGER FOR MACLEAN HUNTER WOULD NEED TO HAVE DEEP POCKETS AND BE CANADIAN BECAUSE OF REGULATIONS SOME OF THE POTENTIAL SUITORS FOR MACLEAN HUNTER MENTIONED BY ANALYSTS INCLUDE POWER CORP OF CANADA A MEDIA CONCERN FLUSH WITH CASH AND BCE INC A HOLDING COMPANY THAT OWNS BELL CANADA THE COUNTRY'S LARGEST TELEPHONE COMPANY SPOKESMEN FOR POWER CORP AND BCE DECLINED TO COMMENT ANALYSTS ALSO SUGGESTED SEAGRAM CO A BEVERAGE CONCERN WITH A MINORITY STAKE IN MEDIA GIANT TIME WARNER INC OFFICIALS OF THOSE COMPANIES WEREN'T AVAILABLE FOR COMMENT A FEW COMPANIES INCLUDING MONTREAL MEDIA CONCERN QUEBECOR INC AND TORONTO NEWSPAPER CONCERN HOLLINGER INC SAID THEY WOULD CONSIDER BUYING SOME MEDIA ASSETS ROGERS COMMUNICATIONS FRIDAY REPORTED A FOURTHQUARTER LOSS OF C1633 MILLION OR C102 A SHARE INCLUDING SOME ONETIME CHARGES COMPARED WITH A LOSS OF C702 MILLION OR 47 CANADIAN CENTS A SHARE IN THE YEAREARLIER PERIOD ITS OPERATING PROFIT HOWEVER MORE THAN TRIPLED MOSTLY DUE TO COSTCUTTING REVENUE ALSO ROSE 11 TO C3559 MILLION FROM C3207 MILLION THE COMPANY HAD C28 BILLION IN LONGTERM DEBT AS OF DEC 31 TWO CREDITRATING AGENCIES SAID FRIDAY THEY ARE REVIEWING THEIR RATINGS ON ROGERS COMMUNICATIONS IN LIGHT OF THE DEBT THE COMPANY WOULD TAKE IN AN ACQUISITION 9402070019 940207 POLITICS & POLICY LIKE ROOSEVELT AND NIXON BEFORE HIM CLINTON STIRS PASSIONATE HATRED IN MANY OF HIS CRITICS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LITTLE ADS FILL THE BACK PAGES OF NATIONAL REVIEW AND THE AMERICAN SPECTATOR THERE ARE BUMPER STICKERS THAT SAY HONK IF YOU HATE CLINTON OR MY CHOICE ABORT CLINTON OR NEVER EVER EVER EVER TRUST A DRAFT DODGER 3 EACH TWO FOR 5 TSHIRTS ARE POPULAR TOO ONE OF THEM SHOWS THE PRESIDENTIAL SEAL AND THE WORDS SMOKE DOPE DODGE DRAFT CHEAT WIFE BECOME PRESIDENT THE NEW AMERICAN WAY 1695 PLUS POSTAGE AND HANDLING SOMETHING CURIOUS IS GOING ON OUT THERE WHILE BILL CLINTON CELEBRATES AN ECONOMIC RECOVERY GLORIES IN 60 JOBAPPROVAL RATINGS IN THE POLLS AND GLOATS IN HIS STATE OF THE UNION ADDRESS OVER THE END OF LEGISLATIVE GRIDLOCK AN ANGRY SULLEN MINORITY CONTINUES TO VIEW HIM WITH EXTREME DISTASTE YOU GET SO MUCH DEEP HATRED OUT THERE SAYS BRIAN LAMB CHIEF EXECUTIVE OFFICER AND MODERATOR FOR CSPAN CABLE TELEVISION'S PUBLICAFFAIRS NETWORK IT COMES THROUGH IN THEIR ANGRY VOICES WHEN THEY SPEAK OUT ON CSPAN'S DAILY VIEWER CALLIN SHOWS NOTHING IS GOING TO CHANGE THESE PEOPLE EVERY PRESIDENT IN THE COUNTRY'S HISTORY HAS MANAGED TO MAKE SOME VOTERS ANGRY BUT WIDESPREAD HATRED IS FAIRLY UNUSUAL JIMMY CARTER NEVER STIRRED VERY MUCH HATRED PARTLY BECAUSE HE WAS SEEN AS INEFFECTIVE LYNDON JOHNSON DIDN'T INSPIRE VENOMOUS HATRED UNTIL THE LAST MONTHS HE WAS IN OFFICE AND THAT WAS CAUSED BY HIS PROSECUTION OF AN UNPOPULAR WAR IN VIETNAM THOSE CHANTS OF HEY HEY LBJ HOW MANY KIDS DID YOU KILL TODAY CAME MOSTLY FROM THE MOUTHS OF THE CHILDREN OF REGISTERED DEMOCRATS PEOPLE DISAGREED WITH BOTH RONALD REAGAN AND GEORGE BUSH BUT NOT VERY MANY PEOPLE REALLY HATED EITHER ONE OF THEM BUT BILL CLINTON AND HIS ACTIVIST WIFE HILLARY RODHAM CLINTON HAVE AROUSED SOMETHING DEEPER YOU CAN HEAR IT ON TALK SHOWS AND CONVERSATIONS WITH FRIENDS YOU CAN SEE IT IN LETTERS FROM NEWSPAPER READERS WHY DO SO MANY PEOPLE SO INTENSELY DISLIKE THE CLINTONS WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN SAYS SOME PEOPLE LOATHE HIM FOR THE SAME REASON THAT OTHERS LOVE HIM HE HAS COME TO WASHINGTON WITH AN AGENDA OF CHANGE AND IN DOING SO HAS TAKEN ON SOME ENTRENCHED INTERESTS BUT THE EXPLANATION IS PROBABLY A LITTLE MORE COMPLICATED THAN THAT SOME OF IT IS SURELY CULTURAL AS THE PRESIDENCY'S FIRST BABY BOOMER WITH ALL THAT CONNOTES FROM VIETNAM PROTESTS TO MARIJUANA MR CLINTON IS CARRYING THE BAGGAGE OF AN ENTIRE GENERATION ONE THAT MANY NONBOOMERS VIEW WITH A JAUNDICED EYE THEN THERE IS MRS CLINTON SHE STOKES THE FIRES ESPECIALLY AMONG OLDER VOTERS ACCUSTOMED TO TRADITIONAL FAMILY VALUES PEOPLE WHO ARE ANGRY ABOUT THE PRESIDENT USUALLY ARE JUST AS ANGRY ABOUT THE FIRST LADY IT'S THIS WHOLE FEMINIST THING SAYS GEORGETOWN UNIVERSITY POLITICAL SCIENTIST JAMES REICHLEY THEY'RE JUST NOT COMFORTABLE WITH THIS LEADERSHIP ROLE SHE HAS TAKEN AT THE WHITE HOUSE BUT THERE'S MORE TO IT THAN THAT LIKE HIS PREDECESSORS FRANKLIN DELANO ROOSEVELT AND RICHARD NIXON BILL CLINTON AROUSES SOMETHING IN MANY VOTERS THAT MAKES STRONG DISLIKE TURN TO PASSIONATE HATRED IN MR ROOSEVELT'S CASE MANY AMERICANS WORRIED ABOUT THEIR POCKETBOOKS AND THEIR FUTURE IN MR NIXON'S CASE THEY WORRIED ABOUT WHETHER THEY COULD TRUST THEIR PRESIDENT MR CLINTON IN A WAY DRAWS ON BOTH TRADITIONS FDR DID AROUSE REAL HATRED A CLASSIC 1936 NEW YORKER CARTOON BY PETER ARNO SUMMED IT UP IT SHOWS TWO WELLDRESSED COUPLES STROLLING DOWN THE STREET ON THE WAY TO THE NEWSREEL THEATER ONE OF THESE TOFFS CALLS OUT TO FRIENDS COME ALONG WE'RE GOING TO THE TRANSLUX TO HISS ROOSEVELT MR ROOSEVELT ANGERED WELLTODO REPUBLICANS BY CALLING THEM ECONOMIC ROYALISTS REPRESENTING THE FORCES OF SELFISHNESS I WELCOME THEIR HATRED FDR GLOATED AS HE PLAYED HIS OWN GAME OF CLASS WARFARE MUCH OF THE HATRED STEMMED FROM FEAR FEAR THAT FDR WAS A POLITICAL MASTERMIND AND THAT HE REALLY WAS INTENT ON MAKING SWEEPING CHANGES IN THE WAY THE COUNTRY WAS STRUCTURED THERE'S A LITTLE OF THAT IN THE THINKING OF PEOPLE WHO CONDEMN MR CLINTON TOO PEOPLE WORRIED ROOSEVELT MIGHT PULL IT OFF SAYS RICHARD VIGUERIE THE CONSERVATIVE DIRECTMAIL SPECIALIST WE SEE THIS GUY AS A SERIOUS PLAYER TOO AND WE WORRY HE MIGHT SUCCEED IN HIS CORE BELIEF EXPANDING THE ROLE OF THE FEDERAL GOVERNMENT GOP POLLSTER TONY FABRIZIO WARNS THAT MR CLINTON IS IN A PERFECT POSITION TO COOPT TRADITIONAL REPUBLICAN ISSUES ESPECIALLY CRIME AND WELFARE REFORM HE URGES HIS PARTY TO WAKE UP TO THE CLINTON PERIL BEFORE IT'S TOO LATE BUT THE HATRED OF MR CLINTON IS EQUALLY REMINISCENT OF THE WAY MANY AMERICANS FELT ABOUT RICHARD NIXON FROM THE VERY BEGINNING A SIGNIFICANT NUMBER OF AMERICANS DESPISED HIM IT HAD LITTLE TO DO WITH HIS POLICIES HE WAS AFTER ALL SOMETHING OF A POLITICAL PRAGMATIST AND NOT MANY PEOPLE BELIEVED HE WANTED TO RESTRUCTURE AMERICAN SOCIETY THEY JUST DISLIKED HIM PERSONALLY AND THEY NEVER DID TRUST HIM THE FEELING WAS SUMMED UP IN THE QUESTION WOULD YOU BUY A USED CAR FROM THIS MAN PEOPLE MOSTLY DEMOCRATS CALLED MR NIXON TRICKY PEOPLE MOST OF THEM REPUBLICANS CALL MR CLINTON SLICK IF MR CLINTON ISN'T QUITE THE DEMOCRATIC RICHARD NIXON THERE IS SOME COMMON GROUND HERE SOME PEOPLE SAY IT'S A QUESTION OF TRUST AND CREDIBILITY AND IT LIES OUT THERE WAITING FOR HIM SHOULD THE TIME EVER COME WHEN VOTERS BEGIN TO REJECT HIS REFORM AGENDA I THINK THERE'S A SENSE AMONG A LOT OF PEOPLE THAT HE'S ILLEGITIMATE SAYS VIN WEBER A FORMER GOP CONGRESSMAN AND NOW A LEADER OF A CONSERVATIVE ADVOCACY GROUP THESE PEOPLE THINK THE CHARACTER ISSUE SHOULD HAVE DISQUALIFIED HIM IN THE FIRST PLACE DURING THE 1992 ELECTION RIGHT NOW MR CLINTON IS RIDING FAIRLY HIGH IN THE PUBLICOPINION POLLS DESPITE THE CONTROVERSY SURROUNDING HIS INVESTMENTS IN THE WHITEWATER DEVELOPMENT CO IN ARKANSAS THAT HAS NOW LED TO THE APPOINTMENT OF A SPECIAL COUNSEL BUT NO MATTER HOW HIGH HIS APPROVAL RATING CLIMBS THE DOUBTS ABOUT HIM PERSIST IN THE LATEST WALL STREET JOURNAL/NBC NEWS POLL ONLY 35 OF AMERICANS ARE VERY CONFIDENT THAT MR CLINTON HAS THE RIGHT SET OF PERSONAL CHARACTERISTICS TO BE PRESIDENT DOWN FROM 50 A YEAR EARLIER AND ONLY 33 DOWN FROM 50 GIVE HIM HIGH MARKS FOR HIS ETHICAL AND MORAL VALUES IT'S ALWAYS BEEN A PROBLEM FOR CLINTON SAYS PAUL GREENBERG EDITOR OF THE EDITORIAL PAGE OF THE ARKANSAS DEMOCRATGAZETTE IN LITTLE ROCK AND A LONGTIME CRITIC OF THE PRESIDENT HERE UNLIKE NIXON YOU HAVE THIS GREAT SALESMAN WONDERFUL IN THESE ONEONONE TELEVISION APPEARANCES BUT THE GUY HAS NO TRACTION HE'S APT TO CHANGE HIS MIND ABOUT ALMOST ANYTHING THE NEXT DAY HE'S JUST SO CASUAL ABOUT HIS PERSONAL AND POLITICAL OBLIGATIONS SOME ANALYSTS BELIEVE THIS SEETHING ANGER WILL BOIL OVER AT THE POLLING BOOTHS IN THE OFFYEAR ELECTIONS IN NOVEMBER PEOPLE WHO ARE MAD TURN OUT TO VOTE SAYS MR WEBER AND A LOT OF PEOPLE ARE REALLY MAD SOME OF THE COMMENTS I HEAR ARE JUST AMAZING IT'S NOT GOING TO GO AWAY WHETHER IT DOES OR NOT THERE IS ONE GROUP THAT MUST BE THANKING ITS LUCKY STARS FOR MR CLINTON THOSE WHO MAKE AN INDUSTRY OUT OF BASHING HIM THE AMERICAN SPECTATOR REPORTS ITS CIRCULATION HAS CLIMBED TO 251000 FROM 35000 IN EARLY 1992 NATIONAL REVIEW REPORTS A SURGE FROM 157000 TO 240000 MEANWHILE THE REPUBLICAN NATIONAL COMMITTEE SAYS THAT IN 1993 IT RAISED 30 MILLION IN INDIVIDUAL CONTRIBUTIONS OF 100 OR LESS 78 OF ALL THE MONEY IT COLLECTED SMALL CONTRIBUTIONS WERE UP SHARPLY FROM 1992 A PRESIDENTIALELECTION YEAR AT THE AMERICAN CONSERVATIVE UNION WHERE MEMBERSHIP HAS SOARED FROM 30000 ON THE EVE OF MR CLINTON'S INAUGURATION TO 450000 NOW PRESIDENT DAVID KEENE SAYS SIMPLY HE HAS BEEN A GODSEND 9402070018 940207 DETROIT STEPS UP PUSH FOR DELAY ON ELECTRIC CARS BIG THREE ASSERT 1998 GOAL CAN'T BE MET CITE NEED FOR BETTER TECHNOLOGY BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE BIG THREE AUTO MAKERS ARE ESCALATING THEIR CAMPAIGN TO PERSUADE CLEANAIR REGULATORS IN CALIFORNIA AND THE NORTHEAST TO BACK AWAY FROM A 1998 DEADLINE FOR AUTO MAKERS TO MASS PRODUCE ELECTRIC CARS GENERAL MOTORS CORP PRESIDENT JOHN F SMITH JR AND FORD MOTOR CO CHAIRMAN ALEXANDER TROTMAN IN SEPARATE APPEARANCES HERE LAST WEEK SAID THE AUTO INDUSTRY CAN'T MEET THE 1998 DEADLINE MR SMITH ARGUED THAT THE MANDATE SHOULD BE SUSPENDED UNTIL THE INDUSTRY PRODUCES BETTER BATTERY TECHNOLOGY AT THE SAME TIME THE TWO AUTO EXECUTIVES SAID THE BIG THREE STILL ARE LOOKING FOR A WAY TO COLLABORATE ON ELECTRICVEHICLE PRODUCTION SHOULD THEIR LOBBYING FAIL LAST YEAR IT APPEARED THAT PROPOSAL HAD DIED AMID BICKERING AMONG RIVAL FACTIONS AT GM FORD AND CHRYSLER CORP THE COMMENTS BY MESSRS SMITH AND TROTMAN SIGNAL THAT DETROIT'S BIG THREE ARE DETERMINED TO FIGHT PLANS BY CALIFORNIA AND 12 NORTHEASTERN STATES TO FORCE SALES OF SOCALLED ZEROEMISSION VEHICLES WITHIN FOUR YEARS WE DON'T HAVE THE KNOWHOW TO GET THERE WITH A VEHICLE THAT CUSTOMERS WILL PAY FOR MR TROTMAN SAID DECLARING FORD WILL FIGHT TO ROLL BACK THE 1998 CALIFORNIA DEADLINE MR SMITH TOOK A SOFTER LINE SUGGESTING A DEAL THAT WOULD RESULT IN ELECTRIC VEHICLES BUT LATER MR SMITH SAID HE WANTS TO MEET WITH CALIFORNIA'S AIR RESOURCES BOARD SO THAT HE CAN CONVINCE THE POWERFUL REGULATORY AGENCY THAT GM'S BEST ELECTRIC VEHICLE THE IMPACT WON'T MEET MOST CONSUMER NEEDS UNTIL A NEW GENERATION OF BATTERY TECHNOLOGY EMERGES NEW BATTERIES AREN'T LIKELY TO EMERGE BEFORE 1998 THE YEAR THAT THE REGULATORY BOARD WANTS AUTO MAKERS TO BEGIN SELLING SUCH ZEROEMISSION VEHICLES MR SMITH SAID THERE OUGHT TO BE A WAY OF TYING THIS ELECTRICVEHICLE MANDATE TO A SECOND GENERATION OF BATTERIES MR SMITH SAID WE STILL NEED MAJOR BREAKTHROUGHS BEFORE THE ELECTRIC VEHICLE CAN BE SUSTAINED IN THE MARKETPLACE MR SMITH ALSO SUGGESTED THAT A MANDATE TO MAKE ZEROEMISSION VEHICLES COULD BE TIED TO THE SUCCESS OF THE CLINTON ADMINISTRATION'S SOCALLED SUPERCAR INITIATIVE WITH THE BIG THREE AND THE AUTO MAKERS' 260 MILLION US ADVANCED BATTERY CONSORTIUM A JOINT RESEARCH PROGRAM WITH THE ELECTRIC UTILITY INDUSTRY AND THE DEPARTMENT OF ENERGY AS PROUD AS WE ARE OF THE IMPACT AND ALL THE RAVE REVIEWS IT HAS RECEIVED WE THINK WE CAN MAKE THE ELECTRIC VEHICLE MORE PRACTICAL AND LESS COSTLY IF GIVEN MORE TIME MR SMITH SAID GENERALLY AUTO MAKERS EXPECT ELECTRIC CARS TO COST THOUSANDS MORE THAN CONVENTIONAL VEHICLES WHETHER MR SMITH'S PROPOSAL WILL WIN A FOLLOWING AMONG SKEPTICAL REGULATORS IS UNCERTAIN WHAT'S CLEAR IS THAT DETROIT'S EFFORTS TO DERAIL THE ELECTRICCAR BANDWAGONS IN CALIFORNIA AND THE NORTHEAST HAVEN'T WORKED SO FAR DESPITE HEAVY LOBBYING REGULATORS IN 12 NORTHEASTERN STATES AND THE DISTRICT OF COLUMBIA LAST WEEK VOTED TO PUSH AHEAD WITH A REGIONAL PLAN TO ADOPT CALIFORNIA'S STRICT PROGRAM FOR REDUCING VEHICLE EMISSIONS INCLUDING ITS ZEROEMISSIONS COMPONENT SHOULD THAT PROPOSAL BECOME LAW AUTO MAKERS WOULD HAVE TO MARKET EMISSIONFREE VEHICLES SUCH AS ELECTRIC CARS FOR NEARLY HALF OF THE NATION'S VEHICLE MARKET THE CONSENSUS AMONG AUTO MAKERS INCLUDING JAPANESE MANUFACTURERS IS THAT THE INDUSTRY CAN'T MEET THE REGULATORY DEMANDS WITH AVAILABLE TECHNOLOGY IF AUTO MAKERS ARE FORCED TO MEET THE 1998 MANDATE MR TROTMAN SAID THE RESULT WILL BE EXPENSIVE UNDERPERFORMING VEHICLES THAT CUSTOMERS WON'T BUY YOU CAN'T MANDATE TECHNOLOGY MR TROTMAN SAID 9402070017 940207 HEALTH DEBT ANXIETY CREDIT CRISIS TELL IT TO A MONEY SHRINK BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL PULL UP YOUR CHAIR OR COUCH PENNY PINCHERS AND SPENDTHRIFTS YOUR MONEY THERAPIST IS LISTENING WHEN DIANNE AND BOB SMITH WERE FIRST MARRIED THEY SHARED A CHECKING ACCOUNT BUT THE WEEKLY BALANCING OF THE CHECKBOOKS TRANSFORMED THEIR HOME INTO A MINEFIELD FINALLY THE ANNAPOLIS MD COUPLE TURNED TO OLIVIA MELLAN A WASHINGTONBASED MONEY THERAPIST TODAY THE SMITHS SAY THEIR MONEY TROUBLES HAVE BEEN SOLVED BY THE TALKING CURE AROUND THE COUNTRY A GROWING NUMBER OF THERAPISTS ARE TREATING PEOPLE WHO SUFFER FROM MONEY NEUROSIS OR FINANCIAL DYSFUNCTION PEOPLE ARE INCREASINGLY AWARE OF HOW MONEY OR LACK OF IT CAN AFFECT THEIR LIVES SAYS THE PSYCHOLOGIST JOYCE BROTHERS THE DEMAND FOR HELP IN OVERCOMING MONEY PROBLEMS CERTAINLY KEEPS OUR OFFICES FULL SAYS ROBERT R BUTTERWORTH A LOS ANGELESBASED CLINICAL PSYCHOLOGIST MONEY PROBLEMS OFTEN HAVE EMOTIONAL CAUSES SAYS DAVID KRUEGER A HOUSTON PSYCHIATRIST WHO TREATS SOME FINANCIAL DISORDERS MONEY ALONG WITH FOOD AND SEX ARE THE MOST COMMON PLACES WHERE EMOTIONAL ISSUES HITCHHIKE AND LIKE FOOD YOU CAN'T SIMPLY GO COLD TURKEY ON MONEY MONEY ALSO TAKES ON SYMBOLIC MEANINGS SOME PEOPLE FOR EXAMPLE THINK OF IT AS BEING DIRTY WHILE FOR OTHERS IT SYMBOLIZES FREEDOM SECURITY OR POWER MS MELLAN TRACED THE SMITHS' MONEY TENSIONS TO MS SMITH'S FATHER WHO USED TO MAKE HER APPLY FOR HER ALLOWANCE BY PAINSTAKINGLY ACCOUNTING FOR HOW SHE WOULD SPEND IT SO A SIMPLE INQUIRY FROM HER HUSBAND TURNED INTO AN EMOTIONALLY CHARGED DEBATE ABOUT CONTROL AND INDEPENDENCE THE SOLUTION SEPARATE CHECKING ACCOUNTS NOW MS SMITH SIMPLY WRITES A CHECK TO HER HUSBAND FOR HER PART OF THE BILLS MONEY MAY NOT BE THE PRIMARY CAUSE OF PROBLEMS BUT WHEN YOU START TALKING TO PEOPLE ABOUT CONFLICT IN RELATIONSHIPS IT'S REALLY UP IN THE TOP THREE SAYS DR BUTTERWORTH ALL KINDS OF PEOPLE FROM ALL KINDS OF BACKGROUNDS SEEK MONEY THERAPY CHRISTOPHER MOGIL A BOSTONBASED COUNSELOR PRIMARILY TREATS PEOPLE WITH INHERITED WEALTH ONE CLIENT HAD INHERITED 100 MILLION AND WAS INTERESTINGLY ENOUGH SHAMED ABOUT MONEY SAYS MR MOGIL PEOPLE WHO DON'T HAVE ENOUGH MONEY OR HAVE TOO MUCH FEEL THE SAME THINGS IF YOU HAVE A HUGE AMOUNT YOU FEEL YOU HAVE TOO MANY CHOICES IF YOU HAVE NO MONEY YOU HAVE NO CHOICES BOTH FEEL PARALYZED HE SAYS AT ARLENE MATTHEWS'S PRACTICE IN NEW YORK CITY A YOUNG WOMAN JUST STARTING OUT AND A RETIREMENTAGE MAN WHO HAS MADE AND LOST SEVERAL FORTUNES ARE BOTH DOING TIME ON THE COUCH MS MATTHEWS'S PRACTICE OFTEN ATTRACTS PATIENTS WHO WORK WITH MONEY AS A PROFESSION THEY'RE WONDERFUL AT MAKING MONEY FOR OTHER PEOPLE BUT THEY CAN'T MANAGE THEIR OWN THE PSYCHOTHERAPIST SAYS TODAY MANY PEOPLE FEEL A LOSS OF CONTROL OVER THEIR MONEY SUGGESTS TAHIRA K HIRA PROFESSOR OF PERSONAL FINANCE AND CONSUMER BEHAVIOR MODERN CULTURE SAYS DR HIRA OF IOWA STATE UNIVERSITY ENCOURAGES OVERSPENDING AND IRRESPONSIBLITY HANDLING MONEY DEMANDS MORE CONTROL BECAUSE OF THE ENTICING PRODUCTS AROUND US SHE SAYS THE PROBLEMS PEOPLE HAVE WITH MONEY CHANGE WITH THE TIMES SAYS MS MATTHEWS IT'S A PURGEBINGE THING SHE SAYS THE OVERWHELMING MESSAGE BEING PASSED AROUND IN THE '80S WAS BUY BUY BUY YOU CAN CATCH UP LATER BECAUSE THE BOOM TIMES ARE HERE TO STAY NOW IN THE '90S IT'S SAVE SAVE THE GROUP THINKING INFLUENCES THE WAY PEOPLE WITH MONEY ANXIETIES THINK ABOUT MONEY MS MELLAN HAS TARGETED SEVEN TYPES OF PATIENTS WHO HAVE PROBLEMS WITH MONEY HOARDERS SPENDERS MONEY MONKS WHO THINK THAT MONEY IS EVIL AND CORRUPT MONEY WORRIERS MONEY AMASSERS WHO WANT TO COLLECT A LOT OF IT RISK TAKERS AND RISK AVOIDERS WHO WANT FINANCIAL SAFETY AND SECURITY ABOVE ALL ELSE IN HER COMING BOOK MONEY HARMONY SHE PRESCRIBES CURES FOR VARIOUS PERSONALITY TYPES FOR INSTANCE KEVIN WAS A MONEY AMASSER HE WORKED LONG HOURS AND SPENT MOST EVENINGS AND WEEKENDS AT THE COMPUTER MONITORING HIS STOCK INVESTMENTS ON VACATION HE FLAUNTED HIS WEALTH BUT HE COULDN'T RELAX ENOUGH TO ENJOY IT ONE DAY HIS WIFE DECIDED TO LEAVE HIM STUPEFIED HE ASKED HOW CAN YOU THINK ABOUT A DIVORCE AFTER ALL I'VE GIVEN YOU' SHE ANSWERED BITTERLY ALL YOU THINK ABOUT IS YOUR MONEY HOW TO MAKE IT GROW HOW TO FLAUNT IT TO IMPRESS OTHERS I FEEL LIKE A SHOWPIECE NOT LIKE SOMEONE YOU ARE SHARING YOUR LIFE WITH' AFTER THE SHOCK OF HIS DIVORCE KEVIN ENDED UP AT A MONEY THERAPY WORKSHOP RUN BY MS MELLAN SOMETIMES A THERAPIST WILL HAVE PATIENTS PRETEND TO ENGAGE IN A DIALOGUE WITH MONEY PERSONIFIED IT MIGHT GO SOMETHING LIKE THIS MONEY YOU ARE DIRTY GET AWAY FROM ME SUCH AN EXERCISE CAN REVEAL HOW THE PATIENT REALLY FEELS ABOUT MONEY OR IT CAN UNCOVER EVEN DEEPER ROOTS LOW SELFESTEEM DEPRESSION OR THE NEED TO HAVE CONTROL SOME PEOPLE SAYS ANNETTE LIEBERMAN A PSYCHOTHERAPIST IN NEW YORK CITY ACTUALLY REFUSE TO TOUCH MONEY AND BUY EVERYTHING WITH CREDIT CARDS AS PART OF THEIR THERAPY MS LIEBERMAN TELLS THEM TO PAY FOR EVERYTHING WITH CASH AND KEEP A DIARY OF WHAT THEY BUY THE POINT IS TO MAKE PEOPLE MORE CONSCIOUS OF MONEY ATTITUDES SAYS MS LIEBERMAN IF PEOPLE COULD BECOME MORE AWARE THEY COULD MAKE AN INFORMED FINANCIAL DECISION THAT ISN'T TINGED WITH EMOTIONAL OVERLAY OF COURSE CERTAIN PROFESSIONALS THINK MONEY THERAPY IS A LOT OF HOOEY I AM A PSYCHOLOGIST BUT I ALSO HAPPEN TO BE A JESUIT PRIEST WITH A VOW OF POVERTY SAYS DANIEL O'CONNELL CHAIRMAN OF THE PSYCHOLOGY DEPARTMENT AT GEORGETOWN UNIVERSITY AS YOU CAN SEE NO ONE EVER NEEDS TO COUNSEL ME ABOUT MONEY 9402070016 940207 BUSINESS BRIEF WLR REJECTS TYSON TAKEOVER OFFER PROTECTS AGAINST FUTURE HOSTILE BIDS BROADWAY VA WLR FOODS INC A CHICKEN AND TURKEY PROCESSOR SAID ITS BOARD REJECTED AN UNSOLICITED OFFER BY TYSON FOODS INC TO BUY THE COMPANY FOR 30 A SHARE OR 329 MILLION WLR ALSO SET UP DEFENSIVE MEASURES AGAINST FUTURE HOSTILE BIDS IN A LETTER TO TYSON WLR CHAIRMAN CHARLES W WAMPLER JR SAID HIS COMPANY'S BOARD BELIEVES IT IS IN THE BEST LONGTERM INTERESTS OF WLR FOODS INC AND ITS SHAREHOLDERS FOR THE COMPANY TO REMAIN INDEPENDENT WLR'S REJECTION CAME TWO DAYS AFTER TYSON'S FEB 4 DEADLINE FOR A RESPONSE A WLR SPOKESWOMAN SAID TYSON HASN'T ANNOUNCED WHETHER IT WILL LAUNCH A PUBLIC TENDER OFFER FOR WLR OFFICIALS OF TYSON FOODS THE NATION'S BIGGEST POULTRY COMPANY COULDN'T BE REACHED IN A SEPARATE LETTER TO SHAREHOLDERS WLR ANNOUNCED IT HAD SET UP A SHAREHOLDER PROTECTION RIGHTS PLAN THAT COULD SUBSTANTIALLY DILUTE THE HOLDINGS OF ANY PERSON OR GROUP THAT ACQUIRES 15 OR MORE OF THE COMPANY'S COMMON STOCK THE PLAN GIVES SHAREHOLDERS THE RIGHT TO BUY ADDITIONAL SHARES AT HALF THE CURRENT MARKET VALUE IN THE EVENT SOMEONE ATTEMPTS TO ACQUIRE CONTROL OF THE COMPANY THE TYSON BID REPRESENTED A 57 PREMIUM OVER THE 19 CLOSING FOR WLR'S STOCK ON THE DAY OF THE ANNOUNCEMENT IN NASDAQ STOCK MARKET TRADING FRIDAY WLR SHARES CLOSED AT 2825 DOWN 1 WHILE TYSON SHARES CLOSED UNCHANGED AT 21875 IN EXPLAINING ITS REJECTION WLR SAID IT HAS MADE SIGNIFICANT CAPITAL EXPENDITURES AND ACQUISITIONS IN RECENT YEARS TO STRATEGICALLY POSITION THIS COMPANY TO PROFIT IN A MORE FAVORABLE POULTRY CYCLE AND NATIONAL ECONOMY A SALE IT SAID WOULD DEPRIVE SHAREHOLDERS FROM REALIZING THE BENEFITS OF THAT INVESTMENT IT SAID 9402070015 940207 POSTAL CHIEF SUPPORTS 103 RATE INCREASE BUT BOARD MAY BE LEANING TOWARD A BIGGER BOOST IN MORE COMPLEX PLAN BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON POSTMASTER GENERAL MARVIN RUNYON IS BACKING A 103 INCREASE IN POSTAL RATES BUT THERE ARE SIGNS THAT BOARD MEMBERS WHO MUST SUPPORT THE BOOST DON'T THINK IT WOULD BE ENOUGH THE 103 INCREASE WHICH WOULD APPLY EVENLY TO ALL CLASSES OF MAIL IS THE LOWER OF TWO PROPOSED RATE INCREASES THAT WILL BE PRESENTED TO THE US POSTAL SERVICE BOARD IN THE NEXT FEW DAYS THE OTHER PLAN WOULD IMPOSE VARIED INCREASES ON DIFFERENT CLASSES OF MAIL FOR AN AVERAGE INCREASE OF 138 ACCORDING TO PEOPLE WITH KNOWLEDGE OF THE PLANS THE BOARD IS EXPECTED TO MAKE ITS DECISION NEXT MONTH GENERATING A FILING FOR A RATE INCREASE WITH THE INDEPENDENT POSTAL RATE COMMISSION HIGHER RATES WOULD LIKELY GO INTO EFFECT IN EARLY 1995 THE LOWER INCREASE WOULD BOOST THE PRICE OF MAILING A TYPICAL FIRSTCLASS LETTER TO 32 CENTS WHILE THE LARGER ONE WOULD LIFT THE PRICE TO 33 CENTS THE MOST RECENT RATE INCREASE TOOK EFFECT IN FEBRUARY 1991 LIFTING THE COST OF MAILING A FIRSTCLASS LETTER FOUR CENTS TO 29 CENTS BY THE TIME ANY RATE INCREASE NOW BEING CONSIDERED IS PUT INTO EFFECT THE INFLATION RATE WILL HAVE GAINED A CUMULATIVE 14 OR 15 FROM EARLY 1991 MR RUNYON WHO HAS EMBARKED ON A MUCHPUBLICIZED COSTCUTTING EFFORT AT THE AGENCY IS SAID TO BE EAGER TO KEEP THE AVERAGE INCREASE BELOW THE INFLATION NUMBER NEITHER HE NOR OTHER POSTAL OFFICIALS COULD BE REACHED FOR COMMENT ON THE PLANS LATE LAST WEEK FOR THE FIRST TIME MR RUNYON SAID HE BACKS THE SMALLER 103 INCREASE AT A MEETING WITH POSTAL EMPLOYEES AND BUSINESS MAILERS IN HARRISBURG PA MR RUNYON SAID I'M PERSONALLY PUSHING THAT BUT THE BOARD OF GOVERNORS MAKES THE FINAL DECISION THE HARRISBURG PATRIOT REPORTED BUSINESS MAILERS ARE EAGER TO GET BOARD BACKING FOR THE 103 BOOST IN PART BECAUSE IT WOULD LIKELY SIDESTEP LEGAL WRANGLING THAT TYPICALLY HAS FOLLOWED RATE HIKES IN WHICH INCREASES VARIED FOR DIFFERENT CLASSES OF MAIL ON WEDNESDAY THE MAILERS COUNCIL A GROUP OF THE NATION'S BIGGEST MAILERS PLANS TO HOLD A NEWS CONFERENCE TO BACK THE ACROSSTHEBOARD RATE INCREASE GROUPS AS VARIED AS THE AMERICAN BANKERS ASSOCIATION AND THE GREETING CARD ASSOCIATION ALSO ARE EXPECTED TO JOIN THE CALL BUSINESS OFFICIALS THREATEN THAT IF THE HIGHER 138 AVERAGE BOOST IS SUPPORTED BY THE BOARD THE CONSENSUS WOULD BREAK DOWN AND THE RATESETTING PROCESS WOULD TURN INTO A LEGAL MESS BUT OFFICIALS BOTH INSIDE AND OUTSIDE THE POSTAL SERVICE ARE BEGINNING TO DOUBT THE AGENCY'S ABILITY TO MAKE DO WITH A 103 INCREASE RATES MUST BE HIGH ENOUGH TO KEEP THE POSTAL SERVICE SOLVENT AN INCREASINGLY TOUGH CHORE AS ALTERNATIVE METHODS FOR DELIVERING DOCUMENTS ADVERTISING AND OTHER MESSAGES SUCH AS FACSIMILE MACHINES AND TELEMARKETING CONTINUE TO EAT INTO THE POSTAL SERVICE'S CORE FRANCHISE UNDER THE LAW THE GOVERNORS MUST BE ABLE TO JUSTIFY WHY THEY BELIEVE ANY RATE INCREASE WILL BE SUFFICIENT TO COVER COSTS ONE SENIOR BOARD MEMBER WHO DECLINED TO BE QUOTED EXPRESSED SKEPTICISM THAT THE POSTAL SERVICE CAN MAKE ENDS MEET WITH A 103 BOOST AND OFFICIALS OUTSIDE THE AGENCY SAY THEY HAVE SPOKEN WITH OTHER BOARD MEMBERS WHO HAVE EXPRESSED SIMILAR DOUBTS OUTSIDE THE AGENCY BUSINESSMAILING LEADERS ARE BEGINNING TO GROW DISCOURAGED WITH THE POSTAL SERVICE'S FINANCES IT'S EXTREMELY IMPORTANT THAT THE GOVERNORS GIVE SERIOUS CONSIDERATION TO THE 103 ACROSSTHEBOARD INCREASE SAID GENE DEL POLITO EXECUTIVE DIRECTOR OF THE ADVERTISING MAIL MARKETING ASSOCIATION BUT WITH EACH SUCCESSIVE ACCOUNTING PERIOD SKEPTICISM REGARDING THE PROBABILITY OF MANAGEMENT'S CHANCE OF SUCCESS GROWS 9402070014 940207 YOUR MONEY MATTERS MORTGAGE COSTS ARE EXPECTED TO CLIMB BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL HEADS UP HOMEOWNERS THE GREAT LOW LOW MORTGAGE RATE BONANZA MAY BE COMING TO AN END THE FEDERAL RESERVE BOARD LAST WEEK SOUNDED THE CLARION WHEN IT ANNOUNCED ITS DECISION TO TIGHTEN CREDIT POLICY A MOVE THAT IS LIKELY TO MAKE HOME FINANCING AND OTHER BORROWING MORE EXPENSIVE IN THE FUTURE SOMETIME WITHIN THE NEXT FIVE YEARS PEOPLE LOOKING BACK WILL FIND THESE RATES JUST AS STRANGE AND UNUSUAL AS THE 16 OF 1984 PREDICTS HUGH LAMLE EXECUTIVE VICE PRESIDENT OF NEW YORKBASED MD SASS INVESTORS SERVICES INC SO WHETHER YOU'RE A LONGTIME RESIDENT A FIRSTTIME BUYER OR A TRADER UP TO NEW DIGS IT'S TIME TO GIVE YOUR MORTGAGE STRATEGY A REALITY CHECK FOR INSTANCE DO YOU HAVE OR ARE YOU CONTEMPLATING AN ADJUSTABLERATE MORTGAGE IN THAT CASE YOU'LL BE AMONG THE FIRST TO FEEL THE KICK AS THESE LOANS TRACK SHORTTERM INTEREST RATES SUCH AS ONEYEAR TREASURY BILLS WHICH BEAR THE INITIAL BRUNT OF STIFFER MONETARY POLICY THE HARDEST HIT BY THE FED'S MOVE ARE GOING TO BE THE ARM HOLDERS WHOSE RATE COMES UP FOR ADJUSTMENT IN THE NEXT FEW WEEKS SAYS ROBERT K HEADY PUBLISHER OF BANK RATE MONITOR A NORTH PALM BEACH FLA NEWSLETTER MORTGAGE LENDERS SAY THEY EXPECT THE FED'S MOVES TO CHILL THE MARKET FOR NEW ARMS THEY'RE ALSO BRACING THEMSELVES FOR A RUSH OF REFINANCINGS AS MANY HOLDERS OF THE APPROXIMATELY 850 BILLION OF EXISTING ARMS MOVE INTO FIXED RATES TO BE SURE SOME HOMEOWNERS MAY STILL WANT TO CONSIDER ARMS MANY INITIAL TEASER RATES ARE JUST OVER 4 NOW SO SOMEONE EXPECTING TO MOVE IN A FEW YEARS COULD SAVE ENOUGH IN THE FIRST FEW YEARS OF THE LOAN TO OFFSET FUTURE INCREASES WHAT'S MORE ALTHOUGH MOST ARMS ADJUST ANNUALLY THERE ARE ARMS THAT ADJUST ONLY ONCE EVERY THREE FIVE OR SEVEN YEARS AND OFFER CHEAPER RATES THAN MOST FIXEDRATE LOANS TO WEIGH THE POTENTIAL COSTS OF ARMS BORROWERS SHOULD CALCULATE THE MAXIMUM AMOUNT THEIR PAYMENTS CAN RISE USUALLY BOOSTS ARE CAPPED AT TWO PERCENTAGE POINTS A YEAR AND SIX PERCENTAGE POINTS OVER THE LIFE OF THE LOAN EVEN SO MOST PEOPLE SHOPPING FOR A MORTGAGE ON A NEW HOME SHOULD BE LOOKING AT FIXEDRATE LOANS RATES ON THESE MORTGAGES WEREN'T MUCH AFFECTED BY THE FED'S NEWS AND STILL ARE VERY ATTRACTIVE AFTER CREEPING UP ABOUT A QUARTER PERCENTAGE POINT FROM LAST AUTUMN'S LOWS THE AVERAGE RATE ON 30YEAR FIXEDRATE LOANS IS JUST OVER 7 AND ON 15YEAR MORTGAGES IT'S NEARLY HALF A PERCENTAGE POINT LOWER UNLESS YOU REALLY BELIEVE THAT SHORTTERM RATES ARE GOING TO STAY ABOUT WHERE THEY ARE NOW OR YOU'RE PLANNING TO MOVE OR PAY OFF YOUR MORTGAGE WITHIN THE NEXT YEAR OR TWO YOU WOULD DO WELL WITH A FIXEDRATE MORTGAGE SAYS ROGER HARRINGTON A MORTGAGE ADVISER IN WHITE BEAR LAKE MINN INDEED SOME PROS SAY LONGTERM DEBT MAY EVEN BECOME A TOUCH CHEAPER IN THE WEEKS TO COME AS TIGHTER CREDIT REASSURES THE MARKET THAT INFLATION WILL REMAIN IN CHECK SUCH A DIP IN RATES WOULD PROVIDE AN EXTRA INCENTIVE TO CLINCH A FIXEDRATE MORTGAGE DEAL SOONER RATHER THAN LATER AS ECONOMISTS ARE FORECASTING THAT RATES WILL BE HALF A PERCENTAGE POINT HIGHER BY YEAR END RATES ARE NOT GOING TO GET MUCH BETTER AND COULD GET WORSE SAYS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA A TRADE GROUP IN WASHINGTON I WOULDN'T WAIT TOO LONG THE PROS SAY EVERYONE WITH A MORTGAGE RATE HIGHER THAN 85 SHOULD AT LEAST BE CONSIDERING REFINANCING NOW THAT INCLUDES ALL FIVE MILLION COUCH POTATOES WHO COULD HAVE REFINANCED LAST YEAR AND BENEFITED FROM THE LOWEST INTEREST RATES IN 25 YEARS BUT DIDN'T ANYONE WHO HASN'T AT LEAST THOUGHT ABOUT REFINANCING MUST BE BRAIN DEAD SAYS MD SASS'S MR LAMLE THE MORTGAGE BANKERS ASSOCIATION ESTIMATES THAT MORE THAN 600 BILLION OF EXISTING MORTGAGES CARRY INTEREST RATES ABOVE 9 AND THAT INCLUDES ABOUT 250 BILLION ABOVE 10 ON WALL STREET MORTGAGE INVESTORS CALL IT BURNOUT WHEN BORROWERS JUST KEEP MAKING PAYMENTS ON SUCH HIGHRATE MORTGAGES BY WHATEVER NAME IT COSTS YOU A BUNDLE I TALK TO PEOPLE EVERY WEEK WHO ARE PAYING MORE THAN 10 SAYS MR HARRINGTON THE MORTGAGE ADVISER OF COURSE SOME PEOPLE HAVE GOOD REASONS NOT TO REFINANCE IF THEY PLAN TO MOVE IN A FEW YEARS OR IF THEY HAVE JUST A SMALL BALANCE LEFT ON THEIR LOAN THE COST AND HASSLE PROBABLY AREN'T WORTH IT BUT OTHERS MAY JUST NOT REALIZE HOW MUCH THEY CAN SAVE THEY THINK BECAUSE THEY'RE 10 OR 15 YEARS INTO A MORTGAGE AND STARTING TO PAY DOWN PRINCIPAL REFINANCING DOESN'T MAKE SENSE OR THEY SIMPLY OPT FOR THE LEAST AMBITIOUS STRATEGY WHICH IS TO RETIRE THEIR REMAINING DEBT MORE QUICKLY IT'S TRUE THAT MAKING ONE EXTRA PAYMENT A YEAR OR SWITCHING TO BIWEEKLY PAYMENTS CAN SHORTEN A 30YEAR MORTGAGE BY SEVERAL YEARS AND EFFECTIVELY CUT INTEREST COSTS BY SEVERAL THOUSAND DOLLARS WITHOUT REFINANCING BUT CRUNCHING THE NUMBERS SHOWS THAT REFINANCING IS STILL THE BETTER DEAL THAT'S PARTICULARLY SO FOR HOMEOWNERS WHO OPT TO REFINANCE THEIR LOAN BALANCES INTO 15YEAR LOANS RATES ARE SO LOW THAT NOT ONLY WILL THEIR MONTHLY PAYMENTS PROBABLY DECLINE BUT WHAT'S MORE THEIR NEW DEBT PROBABLY WON'T LAST LONGER THAN THE ORIGINAL LOAN WORK OUT WHAT YOU'VE SPENT ON YOUR MORTGAGE SO FAR AND WHAT A NEW MORTGAGE WILL COST ADVISES KEITH GUMBINGER OF HSH ASSOCIATES A BUTLER NJ FIRM THAT TRACKS MORTGAGE RATES THE REAL DECISION COMES DOWN TO OVERALL EXPENSE TAKE A COUPLE WHO BORROWED 100000 IN 1979 AT THE THENPREVAILING RATE OF ABOUT 10 BY NOW THEY WOULD HAVE PAID OFF 18140 IN PRINCIPAL LEAVING A BALANCE OF 81860 ACCORDING TO PNC MORTGAGE CORP A RIVERWOODS ILL UNIT OF PNC FINANCIAL CORP THEY WOULD ALSO HAVE PAID 140000 IN INTEREST SINCE 1979 IF THEY NOW DECIDED TO MAKE ONE EXTRA PAYMENT A YEAR AVOIDING THE COSTS AND HASSLE OF REFINANCING THEY WOULD SHORTEN THE MORTGAGE BY ABOUT 2 1/2 YEARS AND SAVE ABOUT 15000 IN INTEREST COSTS OVER THE REMAINING 15 YEARS HOWEVER IF THEY REFINANCED THE 81860 BALANCE INTO A NEW 15YEAR LOAN AT TODAY'S RATE OF ABOUT 7 THEY WOULD SAVE MORE THAN 25000 OVER THAT SAME PERIOD MONTHLY PAYMENTS MEANWHILE WOULD FALL TO 73578 FROM 87757 IF THEY WERE MORE AMBITIOUS AND KEPT PAYING 87757 A MONTH AS THEY HAD BEFORE A 15YEAR REFINANCING WOULD BE A EVEN BIGGER BARGAIN ACCORDING TO CALCULATIONS BY PNC MORTGAGE THE REMAINING DEBT WOULD BE PAID OFF IN LESS THAN 12 YEARS AT A TOTAL SAVINGS OF NEARLY 40000 IN INTEREST SPURRED BY NEWS FROM THE FED MANY HOMEOWNERS ARE AT LAST MAKING SUCH MOVES THERE WAS A SIGNIFICANT INCREASE IN APPLICATIONS LAST WEEK SAYS RICK COSSANO EXECUTIVE VICE PRESIDENT OF COUNTRYWIDE FUNDING CORP A NATIONWIDE LENDER IN PASADENA CALIF 9402070013 940207 INTERNATIONAL WASHINGTON INSIGHT ARAB NATIONS LIKELY TO FEEL PRESSURE AT CONFERENCE TO EASE ISRAELI BOYCOTT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR YEARS ARAB STATES HAVE TOLD THE US THAT IF ISRAEL WOULD JUST RECONCILE WITH THE PALESTINIANS ALL ARABISRAELI PROBLEMS COULD BE SOLVED ISRAEL TOOK A GIANT STEP WHEN IT SIGNED AN ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION NOW IT IS THE ARABS' TURN THE CLEAREST WAY FOR THE ARAB WORLD TO SIGNAL ITS READINESS TO BOLSTER MIDDLE EAST PEACE TALKS WOULD BE TO FORMALLY EASE ITS BOYCOTT OF ISRAEL THE SECRETARY GENERAL OF THE ARAB LEAGUE RECENTLY PROMISED US COMMERCE SECRETARY RON BROWN THAT THE BOYCOTT WILL BE ON THE AGENDA WHEN THE GROUP HOLDS ITS REGULAR MINISTERIAL MEETING IN CAIRO NEXT MONTH BUT SEVERAL ARAB DIPLOMATS SAY THE LEAGUE ISN'T LIKELY TO RELAX THE BOYCOTT EVEN THOUGH DOING SO NO LONGER WOULD REQUIRE A HEROIC EFFORT SEVERAL MAJOR HOLES ALREADY HAVE BEEN POKED IN THE BOYCOTT MOROCCO HAS OPEN ECONOMIC LINKS WITH ISRAEL CLANDESTINE TRADE BETWEEN ISRAELIS AND ARABS IS ESTIMATED TO TOTAL 500 MILLION YEARLY ACCORDING TO BENJAMIN GAON PRESIDENT AND CHIEF EXECUTIVE OF KOOR INDUSTRIES ISRAEL'S LARGEST CONGLOMERATE AND KUWAIT AND SAUDI ARABIA THANKFUL TO THE US FOR HELPING SAVE THEM FROM SADDAM HUSSEIN UNOFFICIALLY IGNORE THE SOCALLED SECONDARY BOYCOTT UNDER WHICH ARAB STATES BLACKBALL US COMPANIES THAT DO BUSINESS IN ISRAEL US OFFICIALS SAY THESE STEPS AREN'T ENOUGH ESPECIALLY IN VIEW OF THE MOVE TOWARD RECONCILIATION BETWEEN ISRAEL AND THE PALESTINIANS ISRAELI PRIME MINISTER YITZHAK RABIN UNDER SIEGE FROM HARDLINERS AT HOME WON'T BE ABLE TO MAKE THE COMPROMISES NEEDED TO WIN PEACE WITH HIS ARAB NEIGHBORS UNLESS HE CAN SHOW ISRAELI VOTERS SOME TANGIBLE BENEFITS OF PEACE LIFTING AT LEAST THE SECONDARY BOYCOTT WOULD GIVE ISRAEL AN ECONOMIC BOOST REMOVING THE CONCERNS SOME MULTINATIONAL COMPANIES HAVE ABOUT DOING BUSINESS THERE IT WOULD PROVIDE A PSYCHOLOGICAL LIFT AS WELL EVEN FOR ARAB GOVERNMENTS THE THEORETICAL REASONS FOR MAINTAINING THE EMBARGO ARE RAPIDLY BEING OVERTAKEN BY PRACTICAL REASONS TO ELIMINATE IT THE US IS TRYING TO ENCOURAGE PRIVATE INVESTMENT IN THE ISRAELIOCCUPIED WEST BANK AND GAZA STRIP TO BOLSTER THE PALESTINIAN GOVERNING BODY THAT WILL FUNCTION THERE FOLLOWING THE PLANNED ISRAELI WITHDRAWAL BUT MANY COMPANIES WON'T MAKE INVESTMENTS WITHOUT THE ASSURANCES THAT CAN BE PROVIDED ONLY BY OFFICIAL ELIMINATION OF THE BOYCOTT RULES SENIOR US OFFICIALS REPEATEDLY HAVE TOLD PLO CHAIRMAN YASSER ARAFAT THAT ENDING THE BOYCOTT WOULD BE IN THE ECONOMIC INTEREST OF PALESTINIANS HIS RESPONSE HAS BEEN THAT HE UNDERSTANDS THE CONNECTION BUT CAN'T CALL FOR AN END TO THE BOYCOTT UNTIL THE ISRAELIPALESTINIAN AGREEMENT SIGNED LAST SEPT 13 IS IMPLEMENTED TWO WEEKS AGO THOUGH DURING AN INTERNATIONAL ECONOMIC GATHERING IN DAVOS SWITZERLAND MR ARAFAT JOINED IN THE APPLAUSE WHEN A US OFFICIAL CALLED FOR ENDING THE BOYCOTT US OFFICIALS AREN'T SURE WHETHER THE ENIGMATIC MR ARAFAT WAS SIGNALING A CHANGE OF POSITION OR JUST WASN'T PAYING ATTENTION TO THE SPEAKER MEANWHILE PRESSURE IS MOUNTING FROM THE US CONGRESS THE SENATE RECENTLY APPROVED AN AMENDMENT THAT WOULD PROHIBIT THE SALE OF DEFENSE ITEMS TO COUNTRIES THAT ASK US COMPANIES TO COOPERATE WITH THE BOYCOTT US COMPANIES ALREADY ARE PROHIBITED FROM COOPERATING WITH THE BOYCOTT THE MEASURE DOES HAVE A LOOPHOLE THE WHITE HOUSE COULD WAIVE IT FOR REASONS OF NATIONAL INTEREST OR SECURITY STILL IT COULD BE AWKWARD FOR THE CLINTON ADMINISTRATION TO TAKE ADVANTAGE OF THE LOOPHOLE SAYS A SENIOR US OFFICIAL WE CAN'T COMPLETELY IGNORE THE CONCERNS OF THE CONGRESS ESPECIALLY IN CIRCUMSTANCES WHERE WE SUPPORT THE OBJECTIVES OF THE LEGISLATION NOBODY EXPECTS THE ARAB LEAGUE NEXT MONTH TO REVOKE ITS PRIMARY BOYCOTT AND FREE ARAB GOVERNMENTS TO DO BUSINESS DIRECTLY WITH ISRAEL THAT STEP AND DIPLOMATIC RECOGNITION OF ISRAEL ARE CONCESSIONS THAT WILL BE HELD FOR FUTURE NEGOTIATIONS BUT THE TIME HAS COME TO END AT LEAST THE SECONDARY BOYCOTT AMERICAN IMPATIENCE FOR SUCH A MOVE IS INCREASING TALK HAS BEEN QUITE CHEAP ON THIS ISSUE AND ACTION QUITE DEAR SAYS REP CHARLES SCHUMER A NEW YORK DEMOCRAT AND STRONG ISRAEL SUPPORTER