WITH THE LIFTING OF THE TRADE EMBARGO AGAINST VIETNAM MADISON AVENUE HAS SET ITS SIGHTS ON THAT COUNTRY'S 72 MILLION PEOPLE AT LEAST THREE MAJOR AGENCIES ARE ALREADY IN VIETNAM WITH LIAISON OR INFORMAL OFFICES NOW THAT THE EMBARGO HAS BEEN LIFTED J WALTER THOMPSON AND OGILVY & MATHER BOTH UNITS OF WPP GROUP AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WORLDWIDE EXPECT TO BE UP AND RUNNING ALMOST IMMEDIATELY ANOTHER AGENCY INTERPUBLIC GROUP'S MCCANNERICKSON ALREADY HAS PRODUCED A TELEVISION COMMERCIAL FOR COCACOLA A COKE SPOKESWOMAN IN ATLANTA DECLINED TO DESCRIBE THE COMMERCIAL BEYOND SAYING THAT IT WOULD INCLUDE THE GLOBAL SLOGAN ALWAYS A COKE OFFICIAL SAID PRODUCTION WOULD BEGIN AS SOON AS CONCENTRATE AND OTHER NECESSARY MATERIALS CAN BE BROUGHT INTO THE COUNTRY AS FOR RIVAL PEPSICO THE PURCHASE NY BEVERAGE COMPANY WAS HANDING OUT SAMPLES OF THE SOFT DRINK IN HO CHI MINH CITY ON FRIDAY AND THE COMPANY PLANS TO BE FULLY OPERATIONAL IN A WEEK A SPOKESMAN SAID ALREADY PREPARED IS PEPSI'S FIRST TV COMMERCIAL AIMED AT THE VIETNAMESE MARKET VIETNAM IS THE NEXT GREAT FRONTIER SAYS BRIAN WATSON DEPUTY REGIONAL DIRECTOR OF MCCANNERICKSON'S ASIAPACIFIC REGION WHO IS BASED IN HONG KONG THERE IS AN ENORMOUS AMOUNT OF INTEREST AMONG MANY CLIENTS EVERY MEETING STARTS WITH A QUESTION ABOUT GOING INTO VIETNAM MR WATSON SAYS HE ANTICIPATES THAT SUCH COMPANIES AS GILLETTE AND UNILEVER WILL ENTER THE VIETNAM MARKET EVEN THOUGH VIETNAM APPEARS TO BE FERTILE GROUND FOR AMERICAN PRODUCTS IT IS LESS CLEAR HOW BIG THE MARKET WILL PROVE TO BE THE PERCAPITA INCOME REGISTERS A MERE 200 ANNUALLY FOR INSTANCE STILL AD AGENCY EXECUTIVES NOTE THAT MANY US PRODUCTS INCLUDING COKE ARE ALREADY POPULAR IN VIETNAM THROUGH THE BLACK MARKET AT INFLATED PRICES ONCE THE MERCHANDISE IS LEGAL THE EXECUTIVES SAY THE PRICE WILL BE LOWER THERE ARE MANY BUSINESS OPPORTUNITIES OVER THERE BECAUSE IT IS A YOUNG POPULATION HARDWORKING AND VERY LITERATE SAYS JOJI KONOSHIMA PRESIDENT OF THE USASIA INSTITUTE A NONPROFIT ORGANIZATION IN WASHINGTON ACCORDING TO A STUDY LAST OCTOBER BY OGILVY & MATHER TITLED THE LURE OF VIETNAM ABOUT 50 OF THE POPULATION IS UNDER 20 IT IS THAT AGE GROUP MARKETING EXPERTS SAY THAT MOST CRAVES AMERICAN PRODUCTS SUCH AS BLUE JEANS AND ATHLETIC FOOTWEAR THERE IS A SOLID MIDDLE CLASS SAYS WILLIAM THOMPSON VICE CHAIRMAN AND CHIEF MARKETING OFFICER AT J WALTER THOMPSON THE DILEMMA IS THAT THE INFRASTRUCTURE IS BAD THE TELEPHONE SYSTEM ISN'T UP TO 1994 STANDARDS MR THOMPSON SAYS ADVERTISING AGENCIES WILL DEVISE CAMPAIGNS FOR VIETNAM THAT WILL BUILD A BRAND IMAGE BECAUSE IT WILL BE THE FIRST TIME CONSUMERS ARE BOMBARDED WITH SUCH PRODUCT NAMES ALBEIT SOME OF THEM FAMILIAR THE REAL BATTLE HE SAYS WILL BE WHO CAN BUILD THEIR BRAND FASTER SINCE MANY ARE STARTING FROM GROUND ZERO IT'LL BE A FIERCE RACE AND THAT'S WHERE ADVERTISING WILL COME IN MR THOMPSON SAYS IT IS TOO EARLY TO BE SPECIFIC ABOUT WHICH THOMPSON CLIENTS WILL BE MARKETING IN VIETNAM WE'RE READY TO GO WHEN OUR CLIENTS ARE READY TO GO HE SAYS THOMPSON AND BACKER SPIELVOGEL ARE SEPARATE PARTNERS WITH THE VIETNAMESE AGENCY VINEXAD OGILVY & MATHER IS A PARTNER WITH SAIGON ADVERTISING MCCANNERICKSON HAS NO PARTNER AND MAY BE INDEPENDENT CARL SPIELVOGEL CHAIRMAN OF BACKER SPIELVOGEL SAYS SOME OF THE AGENCY'S REGIONAL CLIENTS INCLUDING HEINEKEN BEER AND BRITISH AMERICAN TOBACCO EXPRESSED INTEREST IN SELLING IN VIETNAM AD EXECUTIVES SAY THE FIRST VENUE FOR ADS WITH FEW EXCEPTIONS WON'T BE TELEVISION OR RADIO VIETNAM HAS FIVE MAJOR TV STATIONS THREE BROADCASTING FROM HANOI AND TWO FROM HO CHI MINH CITY BUT THE MOST POPULAR WAY TO ADVERTISE REMAINS THE MANY BILLBOARDS THAT POPULATE THE COUNTRY MR SPIELVOGEL WHO HAS TRAVELED TO VIETNAM SEVERAL TIMES SAYS THERE IS AMPLE EVIDENCE THAT US COMPANIES ARE THE LAST MAJOR ENTRANTS INTO VIETMAN ON A RECENT TRIP TO VIETNAM MR SPIELVOGEL RECALLS HE STEPPED OUT ONTO THE BALCONY OF HIS HOTEL I STOOD FACING A HUGE BILLBOARD DIRECTLY ACROSS THE STREET HE SAYS IT SIMPLY SAID SONY OTHER COMPANIES PLASTERING THE LANDSCAPE WITH BILLBOARDS INCLUDE PANASONIC AND SHARP THEY WON'T BE ALONE FOR LONG SAY AD AGENCY EXECUTIVES ACCORDING TO AD AGENCY EXECUTIVES UNILEVER IS EXPLORING THE POSSIBILITY OF MARKETING LUX SOAP AS WELL AS TOOTHPASTE WITHIN A FEW MONTHS COLGATEPALMOLIVE IS ALSO CONTEMPLATING A MOVE INTO VIETNAM AND JUST WHAT KIND OF ADVERTISING WILL BE SEEN IT WILL BE SIMILAR TO WHAT WAS FIRST INTRODUCED IN CHINA SAYS MR WATSON OF MCCANN INITIALLY MOST OF THE ADVERTISING WOULD BE SIMPLISTIC AND INVOLVE PRODUCT DEMONSTRATIONS CURIOUSLY ONE MAJOR COMPANY THAT PLANS A PRESENCE IN VIETNAM AMERICAN EXPRESS DOESN'T PLAN TO USE ADVERTISING AT ALL STEVE FRIEDMAN PRESIDENT AND GENERAL MANAGER OF ASIA OPERATIONS AT AMERICAN EXPRESS BASED IN TOKYO SAYS THE COMPANY SIGNED AN AGREEMENT WITH VIETNAMESE BANKS LAST WEEK TO MAKE IT POSSIBLE FOR THE CARD TO BE USED IN THE COUNTRY BUT SAYS MR FRIEDMAN BECAUSE THE GOAL ISN'T TO PENETRATE THE DOMESTIC MARKET BY SIGNING VIETNAMESE TO BE CARDHOLDERS ADVERTISING WITHIN THE COUNTRY ISN'T NECESSARY INSTEAD THE OBJECTIVE IS FOR TRAVELERS TO USE THE CARD IN HOTELS AND RESTAURANTS CBS INC'S CBS NETWORK SAID IT WILL OFFER AN ONLINE OLYMPICS INFORMATION SERVICE ON THE PRODIGY COMPUTER NETWORK AND PROMOTE IT DURING COVERAGE OF THE LILLEHAMMER GAMES AFTER THE GAMES ARE OVER CBS SAID IT PLANS TO CONTINUE PROVIDING THE SERVICE ON THE PRODIGY NETWORK AS A PERMANENT INTERACTIVE HUB OF INFORMATION ABOUT REGULAR CBS PROGRAMMING PRODIGY SERVICES CO A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO IS A SPONSOR OF CBS'S LATENIGHT OLYMPICS COVERAGE PRODIGY AND THE OLYMPICS SERVICE ALSO WILL GET PLUGS DURING COVERAGE OF THE GAMES WITH CBS HOSTS PROVIDING VIEWERS WITH PRODIGY'S TOLLFREE NEWSUBSCRIPTION PHONE NUMBER SAID GEORGE SCHWEITZER CBS SENIOR VICE PRESIDENT OF MARKETING WE GET AN INTERACTIVE CAPABILITY AND THE ABILITY TO SPEAK TO A TARGETED AUDIENCE OF ONLINE USERS MR SCHWEITZER SAID PRODIGY GETS TO ENHANCE THEIR POSITION WITH MILLIONS OF VIEWERS CARRY OUR INFORMATION AND BUILD THEIR NETWORK CBS HAS USED THE PRODIGY NETWORK BEFORE INCLUDING AN ELECTRONIC FOCUS GROUP ABOUT LATE SHOW WITH DAVID LETTERMAN IT CONDUCTED LAST SUMMER THE ONLINE OLYMPICS SERVICE WILL INCLUDE SESSIONS WITH CBS COMMENTATORS AND RESEARCHERS AS WELL AS BULLETIN BOARDS POLLS AND A WINTER OLYMPICS ARCHIVES AFTER THE GAMES ARE OVER MR SCHWEITZER SAID CBS PLANS TO ADD PROMOTIONS FOR SHOWS AND SPONSORS SHAWMUT KETCHUM ADVERTISING NEW YORK SAID IT RESIGNED FROM SHAWMUT NATIONAL CORP'S 95 MILLION ACCOUNT CITING COMPENSATION DIFFICULTIES A SPOKESMAN FOR THE NEW ENGLAND COMMERCIAL BANK CALLED THE DECISION MUTUAL AND SAID IT WAS STILL ASSESSING ITS OPTIONS FOR HIRING A NEW AGENCY SEPARATELY KETCHUM'S LOS ANGELES OFFICE SAID IT WON THE PROJECTED 15 MILLION PACIFICARE HEALTHCARE SYSTEMS ACCOUNT AND THE 8 MILLION ACCOUNT OF SOUTHERN CALIFORNIA KENTUCKY FRIED CHICKEN FRANCHISEES SPRINT SIX AGENCIES ARE STILL IN THE RUNNING TO BECOME SPRINT CORP'S SECOND AGENCY HANDLING LONGDISTANCE ADS FOR THE COMPANY'S NEW BUSINESS SERVICES GROUP THEY ARE WELLS RICH GREENE BDDP GREY ADVERTISING INTERPUBLIC GROUP'S LINTAS OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES AND CLIFF FREEMAN & PARTNERS UNITS AN APRIL DECISION IS EXPECTED 9402070010 940207 SAY IT WITH MONEY ITALIANS JOT THOUGHTS ON 1000LIRE NOTES GRAFFITI WANT ADS PLAINTS VULGARITIES AND ART TRAVEL AS FROM VERONA TO CARPI BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL CARPI ITALY FOR SALE ONE PIG 550 POUNDS HANDSOME AND PINK THIS CLASSIFIED AD DIDN'T APPEAR IN ANY NEWSPAPER NOR WAS IT PINNED TO A BULLETIN BOARD IT WAS SCRAWLED ON A 1000LIRE NOTE THAT SEEMS TO HAVE MADE ITS WAY WALLET TO WALLET FROM VERONA TO CARPI A TRIP OF 54 MILES THERE IT JOINED A PRIVATE COLLECTION WHETHER THIS PARTICULAR PIGGY WENT TO MARKET ISN'T KNOWN A PENNY DOESN'T SEEM TO BE ENOUGH FOR ONE'S THOUGHTS IN ITALY WHERE IT'S A NATIONAL PASTIME TO MAKE STATEMENTS ASK QUESTIONS AND SELL THINGS ON PAPER MONEY THE PREFERRED MEDIUM IS THE 1000LIRE NOTE WHICH IS WORTH ABOUT 60 US THOUGHTS MESSAGES RANGE FROM THE SPIRITUAL I'VE SEEN THE MADONNA TO THE OUTERSPATIAL YESTERDAY I SAW A FLYING SAUCER THEY INCLUDE CHAIN LETTERS LOTTERY NUMBERS VULGARITIES AND COMPLAINTS ABOUT SCHOOL ONE STUDENT FILLED A 1000LIRE BILL WITH NOTES FOR A HISTORY EXAM THE NAMES OF POLITICIANS SOCCER TEAMS AND HEAVYMETAL ROCK GROUPS VIE FOR THE WHITE SPACE WHERE WATERMARKS OF MARCO POLO AND MARIA MONTESSORI LIE HIDDEN WHY DO ITALIANS VENT THEIR FEELINGS ON MONEY DOES THE DESIRE FOR SELFEXPRESSION OVERFLOW THE NORMAL CHANNELS IS THE IMPULSE JUNGIAN OR FREUDIAN OR PERHAPS A FORM OF FOOLSCAPOPHOBIA PEOPLE HAVE ACTUALLY STUDIED THIS WRITING ON A BANK NOTE IS BOTH MISCHIEVOUS AND CREATIVE ACCORDING TO SIRA SEBASTIANELLI AND IVAN BATTISTA ROME PSYCHOLOGISTS WHO HAVE PUBLISHED A 140PAGE BOOK ON THE SUBJECT BUT IT'S ALSO A DESIRE TO LEAVE BEHIND A SIGN OF ONESELF OF ONE'S EXISTENCE OFTEN OF THE EXISTENCE OF AN ALTER EGO UNKNOWN TO ONESELF A DOUBLE WHICH ERUPTS UNFORESEEN A SHADOWY PART THAT WE DIDN'T SUSPECT WAS SO STRONG AND PRESENT OR MAYBE IT'S SIMPLER THAN THAT SAYS ANNA GRASSO ROSSETTI A GRAPHOLOGIST AND PSYCHOLOGIST FROM BRESCIA SOME PEOPLE THINK THAT AT THE RATE SOCIETY SPENDS MONEY HAS BECOME THE CHEAPEST AND MOST IMMEDIATE MEANS TO MAKE SOMETHING KNOWN TO SOMEONE EVEN MORE THAN THE MASS MEDIA AND MAYBE IT'S AS SIMPLE AS PICK UP GRANDPA THE EXPERTS ON MONEY SCRIBBLERS SAY LOVE IS THE HOTTEST TOPIC IN CIRCULATION A COLLECTOR IN ROME WHO MOONLIGHTS AS A TOLLBOOTH ATTENDANT PUBLISHED A BOOK OF 1000LIRE SQUIBS HERE ARE SOME EXAMPLES OF PUTTING YOUR MOUTH WHERE YOUR MONEY IS A KISS IS LIKE WHISKEY IT'S BETTER DOUBLE A KISS IS LIKE A BOXER IT KNOCKS OUT YOUR HEART A KISS IS A NICE WAY OF SPITTING IN SOMEONE'S MOUTH DO YOU WANT TO BE SPIT ON THE CARPI COLLECTOR OSCAR SACCHI DOESN'T PSYCHOANALYZE HIS FELLOW CITIZENS BUT HE DOES SPEND HOURS AMASSING AND SORTING HIS 12861000 NOTES IN THOUSANDLIRE DENOMINATIONS HE PRIDES HIMSELF ON HIS COLLECTION AND HIS LISTING IN THE ITALIAN EDITION OF THE GUINNESS BOOK OF RECORDS HE HOLDS THE RECORD FOR A COLLECTION OF BANK NOTES BEARING WRITING OR DRAWINGS BY UNKNOWN HAND COLLECTING HE SAYS IS NOT ONLY FUN IT'S A GOOD INVESTMENT TOO I NETTED ABOUT EIGHT MILLION LIRE LAST YEAR FROM EXHIBITING MY COLLECTION MR SACCHI SAYS I WOULD HAVE MADE ONLY ABOUT TWO TO TWOANDAHALF MILLION IF I'D INVESTED THE MONEY IN TREASURY BONDS THE 47YEAROLD PARTOWNER OF A CARPIBASED CLOTHINGLABEL COMPANY IS WELLKNOWN LOCALLY BOTH FOR HIS COLLECTION AND FOR ACTING STINTS AS THE VILLAGE IDIOT HIS COLLECTION GROWS DAILY AS HE MAKES THE ROUNDS OF THIS RENAISSANCE TOWN IN NORTHCENTRAL ITALY GOT ANYTHING FOR ME TODAY HE ASKS TAXI DRIVERS NEWSSTAND OWNERS AND BARTENDERS THEY REACH FOR SMALL PILES OF BILLS THEY HAVE SET ASIDE FOR HIM HE THANKS THEM AND PAYS UP ALTHOUGH THE LOVE CATEGORY IS THE LARGEST IN MR SACCHI'S COLLECTION WORTH 4531000 LIRE BY ITSELF THE COLLECTION ALSO INCLUDES 203000 LIRE IN THE DRASTIC AND PESSIMISTIC CATEGORY AND 76000 LIRE IN THE MAFIA AND DRUGS CATEGORY ONE POIGNANT LETTER TO NOBODY IN PARTICULAR PUT INTO CIRCULATION LIKE A BOTTLED MESSAGE AT SEA WAS WRITTEN SO IT SEEMS BY A VICTIM OF THE MAFIA I'M A GIRL FROM REGGIO CALABRIA WITH MAFIOSI PARENTS AND BROTHERS TWO OF MY BROTHERS HAVE BEEN KILLED I MET A GOOD CLEAN BOY AT THE BEACH AND HE HAS ASKED ME TO MARRY HIM HE DOESN'T KNOW ABOUT MY FAMILY I WANT TO GO LIVE WITH HIM BUT MY PARENTS ARE GIVING ME AN APARTMENT AND THEY WON'T LET ME LEAVE REGGIO HE'S AGREED TO MOVE HERE BUT HE DOESN'T KNOW ANYTHING ABOUT MY FAMILY AND I'M AFRAID TO TELL HIM THE NEWS I TALKED TO MY BIG BROTHER WHO ADVISED ME TO KEEP QUIET AND SAID AFTERWARD HE'D TAKE CARE OF IT I'M AFRAID THAT WHEN HE FINDS OUT HE'LL FEEL BETRAYED I LOVE HIM I'M UNDECIDED AND AFRAID SANTINA PSYCHOLOGISTS LIKE MS SEBASTIANELLI AND MR BATTISTA BELIEVE THESE DIRECT CRIES FOR HELP ALONG WITH THE OTHER LIGHTER MESSAGES BY JOKESTERS OR ADOLESCENTS IN LOVE REVEAL A YOUNG ITALIAN POPULATION THAT IS REACHING OUT FOR ATTENTION MS ROSSETTI THE GRAPHOLOGIST HAS EXTENSIVELY PHOTOGRAPHED OUTDOOR GRAFFITI TO COMPARE THEM TO THEIR PORTABLE COUNTERPARTS ON BANK NOTES SHE HAS CONCLUDED THAT ALL MESSAGE WRITERS HAVE THREE MAIN CHARACTERISTICS IN COMMON ONE THEY'RE INFANTILE TWO THEY HAVE THE DESIRE TO AFFIRM THEIR EXISTENCE TO LEAVE THEIR MARK SHE SAYS AND THREE THEY'RE LACKING IN AFFECTION EXCEPT FOR THOSE WHO WRITE LOVE NOTES AN EXAMPLE OF MS ROSSETTI'S ANALYSIS A NAME WRITTEN IN ROUND ATTACHED LETTERS WIDER THAN THEY ARE LONG WAS WRITTEN BY SOMEONE SWEET AFFECTIONATE DESIRING TO REVEAL HER FEELINGS WITH A ROMANTIC APPROACH HER ONLY FAULT A LITTLE MATERIALISTIC EGOISM NOT ALL THESE LONGHAND LONELY HEARTS ARE YOUNG OF COURSE ONE PERSONAL AD PLACED ON A 1000LIRE NOTE READS COMPANION SOUGHT ABOUT 55 YEARS OLD I'VE BEEN RETIRED THREE YEARS AND OWN APARTMENT AND GARAGE HE GAVE HIS PHONE NUMBER ODDLY ENOUGH TWO YEARS INTO ITALY'S CORRUPTION SCANDAL NEITHER 1000LIRE NOTES NOR SUBWAY WALLS SHOW DEEP ANGER TOWARD POLITICIANS GRAFFITI ARTISTS ENCOURAGE AND THANK THOSE CONDUCTING THE INVESTIGATION SUCH AS THE MAIN PUBLIC PROSECUTOR ANTONIO DI PIETRO GRAZIE DI PIETRO THEY OCCASIONALLY MOCK A POLITICIAN UNDER INVESTIGATION LIKE THE BANK NOTE WITH A DRAWING OF FORMER PRIME MINISTER BETTINO CRAXI DRESSED AS A JAILBIRD BUT THEY DON'T GO MUCH FURTHER EVERYONE TALKS ABOUT POLITICS ALL THE TIME BUT THEY'RE HOLDING BACK EXPLORING WHAT THEIR NEIGHBOR THINKS SAYS SOCIOLOGIST AND COLUMNIST FRANCESCO ALBERONI IN ELECTIONS THIS MARCH HE ADDS HALF THE POLITICIANS WILL BE SENT PACKING THAT GIVES PEOPLE SATISFACTION MEANWHILE ITALIANS ARE TURNING THEIR PUBLIC SCRIBBLING TO MORE IMPORTANT MATTERS LIKE MAKING FUN OF CARABINIERI THE MILITARY POLICE CARABINIERE JOKES IN ITALY ARE LIKE POLISH JOKES IN AMERICA OR RUSSIAN JOKES IN POLAND A 1000LIRE BILL READS HOW TO MAKE A CARABINIERE ANGRY TURN OVER ON THE OTHER SIDE IT READS TURN OVER 9402070008 940207 OHIO PROBING WHETHER METLIFE VIOLATED REGULATIONS IN WINNING INSURANCE PACT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL OHIO INSURANCE REGULATORS ARE INVESTIGATING WHETHER METROPOLITAN LIFE INSURANCE CO VIOLATED STATE INSURANCE REGULATIONS WHEN THE COMPANY WON AN EXCLUSIVE CONTRACT TO SELL LIFE INSURANCE TO STATE EMPLOYEES THE MATTER IS SEPARATE FROM AN 18STATE INVESTIGATION INTO METLIFE'S METHODS OF SELLING LIFE INSURANCE TO INDIVIDUALS STILL IT ADDS TO THE QUESTIONS ABOUT THE MARKETING PRACTICES OF THE BIG LIFE INSURER THE OHIO INVESTIGATION CENTERS ON METLIFE'S HIRING IN 1987 OF AN INSURANCE BROKER ASHER SCHAPIRO TO LOBBY THE STATE FOR THE GROUP INSURANCE CONTRACT SHORTLY THEREAFTER MR SCHAPIRO BECAME A CONSULTANT FOR THE STATE TO RECOMMEND WHICH COMPANY SHOULD GET THE CONTRACT METLIFE WON THE CONTRACT IN THE FALL OF 1987 WE'RE INVESTIGATING WHETHER MET MIGHT HAVE VIOLATED INSURANCE LAWS SAID DAVID RANDALL DEPUTY INSURANCE SUPERINDENDENT FOR OHIO MR SCHAPIRO IS ALSO BEING INVESTIGATED NEW YORKBASED METLIFE DENIED ANY WRONGDOING AND SAID IT IS COOPERATING WITH THE STATE INVESTIGATION JOHN DOWD THE ATTORNEY FOR MR SCHAPIRO SAID HIS CLIENT DIDN'T VIOLATE ANY LAWS BEGINNING IN 1986 OHIO BEGAN TO LOOK INTO SELECTING A GROUP LIFE INSURANCE CONTRACT FOR 60000 GOVERNMENT EMPLOYEES EMPLOYEES WOULD PAY FOR THE INSURANCE THEMSELVES BUT THEY WOULD GET A BETTER DEAL THROUGH THE PROGRAM THAN IF THEY BOUGHT INSURANCE ON THEIR OWN METLIFE AGREED TO PAY MR SCHAPIRO A BROKER FROM TEANECK NJ 350000 IF IT WON THE CONTRACT MR SCHAPIRO THEN ARRANGED TO PAY FORMER OHIO DEMOCRATIC PARTY CHAIRMAN PAUL TIPPS 100000 TO LOBBY THE STATE EVEN THOUGH THE STATE KNEW MR SCHAPIRO HAD BEEN HIRED BY METLIFE IT ASKED THE BROKER TO EVALUATE CONTRACT PROPOSALS AND SELECT WHICH INSURANCE COMPANY THE STATE SHOULD HIRE MR SCHAPIRO RECOMMENDED METLIFE SHORTLY AFTER METLIFE GOT WORD THAT IT WON THE COMPANY SENT MR SCHAPIRO A CHECK FOR 350000 MR DOWD MR SCHAPIRO'S ATTORNEY SAID THE MONEY WASN'T A FEE BUT PAYMENT TO REIMBURSE MR SCHAPIRO FOR EXPENSES IN SETTING UP THE INSURANCE PROGRAM HE ADDED THAT MR SCHAPIRO WAS NEVER COMPENSATED BY THE STATE INSTEAD MR SCHAPIRO'S COMPENSATION WOULD COME SOLELY FROM COMMISSIONS ON THE SALE OF LIFE INSURANCE BY METLIFE ACCORDING TO MR DOWD THE ENTIRE PROCESS WAS ABOVE BOARD HE SAID MR SCHAPIRO TOLD THE STATE FROM THE BEGINNING THAT HE WOULD PROBABLY SELECT METLIFE FOR THE CONTRACT BECAUSE IT WAS THE ONLY COMPANY WITH THE ABILITY TO HANDLE SUCH A CONTRACT SCOTT SOLSMAN BENEFITS ADMINISTRATOR WITH THE OHIO DEPARTMENT OF ADMINISTRATIVE SERVICE CONFIRMED THAT THE STATE KNEW ABOUT MR SCHAPIRO'S RELATIONSHIP WITH METLIFE BUT THAT THE STATE REFUSED TO SEVER ITS TIES TO HIM IN A MEMO MR SOLSMAN WROTE TO HIS BOSS IN 1987 MR SOLSMAN MENTIONED HIS CONCERN ABOUT A QUID PRO QUO ARRANGEMENT BETWEEN METLIFE AND MR SCHAPIRO'S COMPANY MR SCHAPIRO HAS BEEN IN THE SPOTLIGHT BEFORE IN 1992 A FEDERAL GRAND JURY IN THE EASTERN DISTRICT OF MICHIGAN INDICTED MR SCHAPIRO ACCUSING HIM OF PAYING 98000 TO A FORMER EMPLOYEE OF AMERICAN MOTORS CORP AND THREE OTHERS TO SELL INSURANCE TO THE CAR MAKER'S EMPLOYEES MR SCHAPIRO WAS ACQUITTED DETAILS ABOUT THE METLIFE CONTRACT IN OHIO CAME OUT IN A LAWSUIT AGAINST METLIFE BROUGHT BY A KENTUCKY INSURANCE BROKER TERRY HAVENS IN THE CASE IN MANHATTAN FEDERAL COURT MR HAVENS CHARGES THAT THE COMPANY OWES HIM A COMMISSION FOR A CONTRACT IT WON TO SELL INSURANCE TO STATE EMPLOYEES IN ILLINOIS METLIFE DECLINED COMMENT BECAUSE THE LITIGATION IS PENDING DOCUMENTS IN THE CASE HAVE BEEN SEALED AT REQUEST OF THE COMPANY 9402070007 940207 CHATFIELD DEAN SETTLES SEC CASE INVOLVING PRACTICES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BROKERAGE FIRM CHATFIELD DEAN & CO SETTLED WITH THE SECURITIES AND EXCHANGE COMMISSION A CIVIL CASE INVOLVING ITS TRADING SALES AND SUPERVISORY PRACTICES THE COMPANY AGREED TO PAY 750000 IN CIVIL PENALTIES AND SEVEN INDIVIDUALS INCLUDING THE FIRM'S TWO TOP OFFICERS ALSO WERE FINED AND PENALIZED THE FIRM AND INDIVIDUALS DIDN'T ADMIT OR DENY CHARGES THE SEC CASE FOLLOWS A DISCIPLINARY PROCEEDING BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DECEMBER THAT ORDERED THE FIRM TO REPAY CUSTOMERS 19 MILLION AND FINED THE FIRM 685000 TO SETTLE CHARGES OF STOCK MANIPULATION AND OTHER VIOLATIONS A NUMBER OF EXECUTIVES ALSO WERE FINED AND DISCIPLINED IN THAT PROCEEDING IN THE SEC SETTLEMENT CHATFIELD PRESIDENT SANFORD D GREENBERG WAS FINED 100000 AND SUSPENDED FOR SIX MONTHS FOLLOWING HIS SUSPENSION SENIOR EXECUTIVE VICE PRESIDENT ROBERT L LEMON WILL BE SUSPENDED IN ANY SUPERVISORY CAPACITY FOR SIX MONTHS AND FINED 50000 THE FIRM NOTED THE SUSPENSIONS WILL BE SERVED SEQUENTIALLY IN THE SETTLEMENT CHATFIELD AGREED TO RETAIN AS CONSULTANTS FORMER SEC CHAIRMAN DAVID S RUDER AND FORMER SEC GENERAL COUNSEL DANIEL L GOELZER TO IMPLEMENT RECOMMENDATIONS TO IMPROVE TRADING SALES AND SUPERVISORY COMPLIANCE PRACTICES MR RUDER HAS BEEN WORKING WITH THE BROKERAGE FIRM SINCE APRIL 1992 MR RUDER SAID THE FIRM'S CURRENT SALES PRACTICES MARKUP POLICIES AND COMPLIANCE ENVIRONMENT ARE ALL OF VERY HIGH QUALITY THE COMPANY ALSO SAID IT ELIMINATED COMMISSION STRUCTURES THAT REWARDED A BROKER FOR SELLING ONE PRODUCT OVER ANOTHER THE SEC SETTLEMENT REQUIRES CHATFIELD TO RECORD ALL TELEPHONE CONVERSATIONS AND RETAIN THEM FOR FIVE YEARS CHICAGO BRANCH MANAGER KEVIN C GROM WAS FINED 75000 AND BARRED WITH A RIGHT TO REAPPLY AFTER THREE YEARS ENGLEWOOD COLO BRANCH MANAGER JOHN K WATTON WAS FINED 50000 AND BARRED WITH A RIGHT TO REAPPLY AFTER TWO YEARS ENGLEWOOD ASSISTANT BRANCH MANAGER ANTHONY G DECAMILLIS WAS FINED 25000 AND BARRED WITH A RIGHT TO REAPPLY AFTER ONE YEAR WILLIAM R MACCALLUM HEAD TRADER WAS FINED 50000 AND BARRED WITH A RIGHT TO REAPPLY AFTER ONE YEAR FORMER VICE PRESIDENT OF COMPLIANCE KENNETH S BERNSTEIN WAS FINED 50000 AND BARRED IN CERTAIN SUPERVISORY CAPACITIES WITH A RIGHT TO REAPPLY AFTER TWO YEARS 9402070006 940207 INTERNATIONAL FOREIGN FIRMS IN CHINA OPPOSE NEW SURCHARGES BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING FOREIGN COMPANIES ARE DIGGING IN THEIR HEELS AGAINST SURCHARGES IMPOSED ON SOME PRICES AND SERVICES FOR FOREIGNERS FOLLOWING JANUARY'S CURRENCY REFORMS BUSINESS GROUPS REPRESENTING HUNDREDS OF US EUROPEAN AND ASIAN COMPANIES HAVE SENT LETTERS TO TOP CHINESE LEADERS TO PROTEST WHAT THEY DESCRIBE AS DISCRIMINATORY 50 INCREASES ON PHONE RATES SALARIES OF CHINESE STAFF AND OTHER CHARGES THE CONFLICT HIGHLIGHTS THE CONFUSION THAT HAS FOLLOWED CHINA'S RUSHED INTRODUCTION OF A RAFT OF ECONOMIC REFORMS EARLY THIS YEAR BUT FOR MANY OVERSEAS INVESTORS IT ALSO RAISES QUESTIONS OVER BEIJING'S ABILITY TO ENSURE A FAIR RULEBYLAW ENVIRONMENT FOR DOING BUSINESS IT'S THE GREED FACTOR AND RIGHT NOW IT'S INCREASING ACROSS THE BOARD IN CHINA SAYS THE BEIJING REPRESENTATIVE OF A US SERVICES COMPANY IF DISCRIMINATION AGAINST FOREIGN COMPANIES CONTINUES HERE LIKE THIS CHINA'S INVESTMENT CLIMATE WILL BE AFFECTED FOR THE USUALLY LOWPROFILE FOREIGN BUSINESS COMMUNITY THE CURRENT CONTROVERSY IS BORDERING ON THE DRAMATIC BUSINESS GROUPS ARE CHURNING OUT FAXES ORGANIZING SUPPORT AMONG MEMBER COMPANIES AND BRIEFING THE FOREIGN MEDIA THE AMERICAN CHAMBER OF COMMERCE HAS CONDUCTED A POLL OF US FIRMS AND SET UP A HOTLINE MANY US AND EUROPEAN COMPANIES ARE REFUSING TO PAY THE SURCHARGES IN RESPONSE SOME CHINESE ORGANIZATIONS INVOLVED ARE TURNING AWAY ANY PAYMENTS THAT ARE LESS THAN THE BILLED AMOUNT THE FOREIGN ENTERPRISE SERVICE CORP WHICH PROVIDES LOCAL EMPLOYEES FOR MANY FOREIGN FIRMS HAS THREATENED TO KEEP WORKERS AT HOME IF THE FIRMS DON'T PAY OFFICIALS AT THE COMPANY KNOWN AS FESCO DECLINED TO COMMENT THE IMMEDIATE CAUSE OF THE CONFLICT IS BEIJING'S UNIFICATION OF THE YUAN ON JAN 1 PREVIOUSLY CHINA HAD OPERATED ON A TWOTIER SYSTEM WITH ONE CURRENCY RENMINBI FOR THE CHINESE AND A SECOND FOREIGN EXCHANGE CERTIFICATES OR FECS FOR FOREIGNERS WHILE THE TWO RATES OFFICIALLY WERE EQUAL THE RENMINBI ACTUALLY TRADED AT A LOWER RATE OF 87 TO ONE US DOLLAR AT THE COUNTRY'S FOREIGNEXCHANGE TRADING CENTERS COMPARED WITH THE FEC'S OFFICIALLY SET RATE OF 57 WHEN BEIJING UNIFIED ITS CURRENCY AND PEGGED THE NEW OFFICIAL RATE TO THE SWAP MARKET RATE SOME CHINESE ORGANIZATIONS RAISED PRICES TO MAKE UP FOR THE DIFFERENCE CAUSED BY THE YUAN'S SUBSEQUENT DEVALUATION UNDERLYING THE ISSUE IS A LARGER ONE OF WHAT FOREIGN COMPANIES SEE AS A POLICY OF DISCRIMINATION AGAINST THEM FOREIGNERS HAVE ALWAYS HAD TO PAY MORE FOR SERVICES RANGING FROM RENT TO TELEPHONE BILLS TO HOTEL RATES TO MUSEUM ENTRANCE FEES BECAUSE SOME FOREIGN FIRMS ARE RESTRICTED TO HIRING LOCAL WORKERS THROUGH ORGANIZATIONS LIKE FESCO THEY ARE FORCED TO PAY SALARIES MUCH HIGHER THAN THE GOING RATE FOR PHILIP CARMICHAEL'S HIGHTECHNOLOGY INSTRUMENTATION COMPANY THE SAVINGS FROM THE YUAN'S DEVALUATION SHOULD HAVE BEEN SUBSTANTIAL HIS COMPANY EMPLOYS SOME 35 FESCO EMPLOYEES MR CARMICHAEL WHO SERVES AS AMERICAN CHAMBER PRESIDENT HERE ESTIMATES THAT HIS COMPANY'S ANNUAL SAVINGS SHOULD TOTAL 30000 TO 50000 IF CHINESE ORGANIZATIONS HADN'T IMPOSED A 50 SURCHARGE HE MAINTAINS THAT BY CHINESE REGULATIONS THE SURCHARGES ARE ILLEGAL THIS ISSUE IS AT THE HEART OF MANY MANY PROBLEMS IN CHINA HE SAYS IT'S A QUESTION OF WHETHER CHINA IS WILLING AND ABLE TO LIVE BY RULE OF LAW IN THIS PART OF ITS DEVELOPMENT 9402070005 940207 BIG THREE AUTO FIRMS SCHEDULE OVERTIME AS OUTPUT PLANS RISE DETROIT OVERTIME IS BECOMING MORE COMMONPLACE IN THE AUTO INDUSTRY GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP ALL REPORTED OVERTIME SHIFTS AT VARIOUS US ASSEMBLY PLANTS LAST WEEK ALTOGETHER THE 10 DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD 265916 CARS AND TRUCKS LAST WEEK UP 169 FROM 227414 VEHICLES BUILT IN THE SAME WEEK A YEAR AGO 9402070004 940207 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT DEL WEBB CORP 100 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE FEB 15 2006 PRICED AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES ARE NOT CALLABLE FOR FIVE YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ALANTEC CORP INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST AND KIDDER PEABODY & CO MORGAN STANLEY AFRICA INVESTMENT FUND INC INITIAL OFFERING OF 154 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199434 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199436 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1697 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES FEDERAL HOME LOAN BANK SYSTEM 85 MILLION OF NOTES DUE FEB 14 1996 PRICED AT PAR TO YIELD 422 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED FLAT TO TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO 9402070002 940207 WHO'S NEWS AFFINITY BIOTECH INC AFFINITY BIOTECH INC ASTON PA DAVID JACKSON 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MICROEMULSION TECHNOLOGY COMPANY DR JACKSON SUCCEEDS ALAN DICKASON 57 WHO WAS NAMED CHIEF SCIENTIFIC OFFICER A NEW POSITION 9402070001 940207 DE BENEDETTI LIFTS COFIDE STAKE THE DE BENEDETTI STAKE WAS INCREASED THROUGH THE PURCHASE OF 20 MILLION SHARES AT 1430 LIRE 84 CENTS US A SHARE COFIDE SAID 9402070180 940110 LETTERS TO THE EDITOR ORIGINATOR RECANTED ON NATURAL SELECTION' THE PASSION AROUSED BY ANY QUESTIONING OF THE STANDARD VERSION OF EVOLUTION NEVER CEASES TO AMAZE ME LETTERS TO THE EDITOR DEC 15 AND A SCOPES TRIAL FOR THE '90S EDITORIAL PAGE DEC 6 EVOLUTION AS A SERIOUS SCIENTIFIC CONCEPT WAS INTRODUCED BY LAMARCK A HALFCENTURY BEFORE DARWIN'S ORIGIN OF THE SPECIES IT IS ACCEPTED BY MANY LEADING RELIGIOUS THINKERS WHO ALSO FIRMLY BELIEVE IN A CREATOR ALL THE FUSS BEGAN WITH THE INTRODUCTION OF NATURAL SELECTION AS THE MECHANISM OF EVOLUTION ALTHOUGH CREDIT FOR THIS CONCEPT USUALLY GOES TO DARWIN ALFRED RUSSELL WALLACE IS ACKNOWLEDGED AS A CODISCOVERER RECENT RESEARCH INDICATES THAT WALLACE WAS IN FACT THE FIRST ONE TO EXPRESS THIS VIEW FOR PUBLICATION BUT THAT DARWIN CARRIED OUT SOME FANCY FOOTWORK TO GAIN PRIORITY FOR THE DISCOVERY EVERYONE AGREES THAT WIDE ACCEPTANCE OF NATURAL SELECTION CAME WITH DARWIN'S FAMOUS BOOK OF 1859 BUT WALLACE CONTINUED TO BE THE MOST CONSISTENT ADVOCATE OF NATURAL SELECTION THROUGH THE REST OF THE 19TH CENTURY WHILE DARWIN WAS FLIRTING WITH LAMARCK'S INHERITANCE OF ACQUIRED CHARACTERISTICS THE POINT OF ALL THIS IS THAT WALLACE AFTER MUCH DELIBERATION REJECTED NATURAL SELECTION FOR THE ORIGIN OF MAN AND CONCLUDED THAT HUMANS COULD HAVE ARISEN ONLY THROUGH THE INTERVENTION OF WHAT HE CALLED A HIGHER INTELLIGENCE ON THIS SCORE I SUPPOSE WALLACE WOULD NOT HAVE BEEN ALLOWED TO TEACH A BASIC COURSE ON EVOLUTION AT SAN FRANCISCO STATE SEE RELATED LETTER LETTERS TO THE EDITOR MISPLACED ARTICLE WSJ JAN 24 1994 SEE RELATED LETTER LETTERS TO THE EDITOR WALLACE STAYED TRUE TO EVOLUTION THEORY WSJ FEB 7 1994 9401100076 9401240009 YY94 MM01 YY94 MM02 9402070176 940124 REVIEW & OUTLOOK EDITORIAL NORTH KOREA'S NUCLEAR CLOUD NORTH KOREA MAY BE THE MOST VEXING PLACE ON EARTH RIGHT NOW WHILE IT OBSERVES THE DIPLOMATIC FORMS PUNCTILIOUSLY AT A FUNDAMENTAL LEVEL IT JUST DOESN'T OPERATE LIKE THE REST OF US NORTH KOREA'S WEIRDNESS WOULDN'T MATTER SO MUCH IF IT WERE SOME HARMLESS BACKWATER IT IS NOT IT IS NOW PLAYING CHICKEN WITH ITS NUCLEAR PROGRAM REFUSING TO ALLOW INSPECTIONS TO WHICH IT IS SUBJECT UNDER THE NUCLEAR NONPROLIFERATION TREATY DESPITE RECENT TALK OF PROGRESS ON INSPECTIONS NORTH KOREA ON FRIDAY DENOUNCED THE INTERNATIONAL ATOMIC ENERGY AGENCY'S ABSURD ASSERTION THAT THE KOREANS WERE MAKING SERIOUS INSPECTIONS IMPOSSIBLE ALL THE NORTH KOREANS HAD DONE WAS TELL THE AGENCY THAT REGULAR INSPECTIONS OF ITS CIVILIAN SITES WOULD BE FORBIDDEN AND A LOOK AT TWO UNDECLARED SITES WAS OUT OF THE QUESTION MEANWHILE PRESIDENT CLINTON WAS TELLING CNN LAST WEEK IT'S CLEAR THE NORTH KOREANS ARE TRYING TO DEVELOP THE BOMB MR CLINTON'S REACTION TO THIS IS THAT THE US WILL CONTINUE TO WORK VERY HARD AND TO BE VERY FIRM ABOUT NOT WANTING KOREA TO JOIN THE FAMILY OF NUCLEAR STATES WE'RE NOT REASSURED IT NOW MUST BE CLEAR TO THE MOST CAUTIOUS OF COMPROMISERS THAT THE USUAL COMBINATION OF CARROTS AND STICKS OR IN THE CASE OF THE NEGOTIATIONS WITH THE US CARROTS AND CARROTS SIMPLY HASN'T WORKED THE CIA THINKS THAT PYONGYANG ALREADY HAS A BOMB OR TWO IN NOVEMBER PRESIDENT CLINTON FLATLY SAID THE US COULD NOT ALLOW THIS AND IN THE TREMENDOUS EFFORT TO GET INSPECTIONS OF SOME KIND WE DIDN'T HEAR MUCH ABOUT WHAT THE CONSEQUENCES WOULD BE IF SOMETHING TRULY BAD WAS FOUND THE US SIDE HAS OFFERED LOTS OF BLANDISHMENTS CANCELLATION OF ANNUAL MILITARY EXERCISES HIGHLEVEL TALKS AND THE POSSIBILITY OF AID AND DIPLOMATIC RELATIONS THAT NORTH KOREA WOULD LIKE TO HAVE ALL THESE CARROTS HAVE NOT APPEARED TO DIM PYONGYANG'S DETERMINATION TO DO WHATEVER IT IS DOING THE ASSUMPTION MUST THEREFORE BE THAT NORTH KOREA IS DETERMINED TO HAVE ITS BOMB WOULD PYONGYANG USE IT MAYBE NOT THAT IS THE ONE THING THAT COULD PROVOKE RETALIATION BUT THERE ARE SOME TROUBLING SIGNS TO CONSIDER JANE'S DEFENSE WEEKLY HAS REPORTED ON THE DEVELOPMENT OF THE NODONG1 SHORTTOINTERMEDIATERANGE BALLISTIC MISSILE AND RUSSIA THROUGH A JAPANESE COMPANY HAS JUST SOLD 40 ATTACK SUBMARINES TO PYONGYANG THESE SUBS ALL ANCIENT BY NAVAL STANDARDS WERE SUPPOSEDLY SOLD FOR SCRAP METAL BUT WE THINK SKEPTICISM IS THE BETTER PART OF DIPLOMACY HERE AFTER ALL GIVEN THE STATE OF NORTH KOREAN INDUSTRY IT WOULD BE CHEAPER TO STRIP A FEW DISUSED LOCAL PLANTS FOR SCRAP INSTEAD OF SPENDING PRECIOUS HARD CURRENCY ON OLD SUBS THERE HAS ALSO BEEN MUCH TALK IN THE OFFICIAL PRESS OF REUNIFICATION IN 1995 A PYONGYANG TIMES EDITORIAL LAST WEEK NOTED WITH A SENSE OF URGENCY IT IS OUR NATION'S SUPREME TASK TO REUNIFY THE COUNTRY IN THE '90S AND HAND DOWN A REUNIFIED COUNTRY TO GENERATIONS TO COME AND IN DECEMBER A COMMUNIQUE AFTER THE CENTRAL COMMITTEE PLENUM SAID THAT THE ECONOMY WAS ROTTEN BLAMING WESTERN AGGRESSION FOR THE SITUATION WE COULD NOT BUT TAKE RESOLUTE SELFDEFENSE MEASURES THE COMMUNIQUE NOTED PUTTING THE WHOLE COUNTRY THE ENTIRE PEOPLE AND THE WHOLE ARMY IN A SEMIWAR STATE THAT MAY BE RHETORICAL EXAGGERATION BUT NORTH KOREA IS STILL THE WORLD'S MOST INTENSELY MILITARIZED COUNTRY WITH THE LEAST PREDICTABLE LEADERSHIP SUCH PRONOUNCEMENTS BEAR WATCHING UNDER THESE CIRCUMSTANCES ONE HAS TO QUESTION PRESIDENT CLINTON'S REFLEX IN OFFERING MORE AND MORE CONCESSIONS TO ENTICE GOOD OR AT LEAST NOT AWFUL BEHAVIOR FROM THE REGIME THE LESSON THAT KIM ILSUNG AND IRAQ AND IRAN AND LIBYA COULD EASILY DRAW IS THAT BAD BEHAVIOR PAYS FOR ALL THESE REASONS WE THINK IT'S TIME TO BRANDISH THE STICK YES WE KNOW CHINA IS NOT KEEN TO BE TOO TOUGH ON ITS SOCIALIST NEIGHBOR AND WE KNOW JAPAN DOESN'T WANT TO STOP THE FLOW OF FUNDS TO NORTH KOREA AND WE KNOW THE UN CAN'T BE EXPECTED TO DO MUCH STILL AT SOME POINT SERIOUSNESS AND CREDIBILITY DEMAND THAT PYONGYANG BEGIN TO INCUR A COST FOR ITS ACTIONS SEE RELATED LETTER LETTERS TO THE EDITOR A FAMILIAR THREAT WSJ FEB 7 1994 9401240048 YY94 MM02 9402070169 940120 NEW YORK'S BORNAGAIN BIG SPENDER BY HERBERT LONDON AS I SAT IN THE NEW YORK STATE ASSEMBLY LISTENING TO GOV MARIO CUOMO'S STATE OF THE STATE ADDRESS TWO WEEKS AGO I HAD THE IMPRESSION THE GOVERNOR WAS AUDITIONING FOR A PART IN YET ANOTHER REMAKE OF INVASION OF THE BODY SNATCHERS FOR ROUGHLY ONE HOUR IT SEEMED THAT RONALD REAGAN INHABITED THE BODY OF MARIO CUOMO NONETHELESS THIS WEEK MR CUOMO PROPOSED A 625 BILLION BUDGET FOR 1994 THE LARGEST IN THE STATE'S HISTORY AND PROBABLY THE LARGEST IN THE US IN HIS ADDRESS THE NEW IMPROVED CUOMO SAID THE WAY TO CREATE JOBS IS TO LOWER CORPORATE TAXES AND HAVE A MORE HOSPITABLE ENVIRONMENT FOR BUSINESS THIS CLAIM OBVIOUSLY WAS MADE BY THE CUOMO FACSIMILE SINCE THE REAL MARIO CUOMO SPOKE AT THE DEMOCRATIC CONVENTION IN 1992 THAT MAN ARGUED THAT SUPPLYSIDE ECONOMICS LOWERING TAXES TO PROMOTE INVESTMENT WAS VOODOO ECONOMICS FOR 12 YEARS NEW YORK HAS BEEN IN A METAPHORICAL FIRESTORM NEW YORK HAS 72 OF THE NATION'S POPULATION AND 15 OF THE NATION'S ACCUMULATED DEBT IT HAS 185 OF THE MEDICAID EXPENDITURES WITH ONLY 8 OF THE MEDICAID RECIPIENTS IT HAS 34 OF THE NATION'S WELFARE RECIPIENTS 11 MILLION IN NEW YORK CITY ALONE FORTY PERCENT OF ALL THE JOBS LOST IN THIS COUNTRY SINCE 1989 WERE LOST HERE 572000 JOBS WERE RELOCATED OR DISAPPEARED GOV CUOMO RECENTLY HAS PRESENTED HIMSELF AS A LOWTAX GOVERNOR HE AND HIS STAFF HAVE NOTED THAT NEW YORK'S INCOMETAX RATE IS AT ITS LOWEST LEVEL IN 30 YEARS THAT NEW YORK RANKS 24TH AMONG STATES IN THE PERCENTAGE OF INCOME TAX PAID IN STATE TAXES THAT GOVERNMENT JOBS HAVE BEEN REDUCED BY 13 SINCE NOVEMBER 1990 AND THAT NEW YORK HELD THE LINE ON TAXES THROUGH THE PAST FOUR BUDGET YEARS THESE ARGUMENTS REPRESENT THE GOVERNOR'S MANTRA ABOUT HIS PERFORMANCE AND THE BASIS ON WHICH HIS NEXT CAMPAIGN WILL BE ORGANIZED BUT ARE THESE ARGUMENTS ACCURATE SINCE MR CUOMO BECAME GOVERNOR IN 1983 THE TAX RATE HAS INDEED GONE DOWN AS HE REPORTS BUT ACTUAL TAXES FOR EACH INDIVIDUAL HAVE GONE UP DRAMATICALLY IN PART THIS IS DUE TO STATE MANDATES THAT FORCE LOCALITIES TO BEAR THE FINANCIAL BRUNT OF GOVERNMENT REQUIREMENTS IN RESPONSE TO THESE STATE DEMANDS LOCALITIES HAVE TWO OPTIONS RAISE PROPERTY TAXES OR SALES TAXES THIS IS PRECISELY WHAT HAS BEEN DONE IN THE PAST 11 YEARS NEW YORK HAS THE HIGHEST COMBINED STATE AND LOCAL TAXES PER CAPITA IN THE NATION 3267 A RATE THAT IS 62 HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO THIS MONTH'S MONEY MAGAZINE IF ONE CONSIDERS A TWOINCOME FAMILY OF FOUR WITH INCOME OF ROUGHLY 80000 THE TAX BILL IN NEW YORK STATE LEAVING OUT FEDERAL TAXES IS 11020 AS OPPOSED TO A 1694 TAB IN ALASKA NEW YORK'S 7875 INCOME TAX IS 54 ABOVE THE AVERAGE OF CONTIGUOUS STATES THE STATE'S 1035 CORPORATE TAX IS THE SECOND HIGHEST IN THE NATION AFTER CONNECTICUT THE DIFFERENCE BY THE WAY IS NEGLIGIBLE AND 53 ABOVE THE NATIONAL AVERAGE THE STATE DISCOURAGES BUSINESS ACTIVITY WITH ITS HIGH CORPORATE TAXES IT ALSO DOES SO WITH AN EFFECTIVE CAPITALGAINS RATE OF 365 IN NEW YORK CITY CAPITAL GAINS ARE TAXED AT AN ASTONISHING 3975 RATE THE HIGHEST IN THE NATION THOSE NUMBERS SUGGEST WHY PRIVATE CAPITAL IS BEING CROWDED OUT OF EXISTENCE BY THE EXPANSIVE PUBLIC SECTOR AND WHY MANY PEOPLE ARE LEAVING THE STATE THESE STATISTICS ALSO INDICATE WHY NEW YORK LAGS SIGNIFICANTLY BEHIND THE REST OF THE NATION IN JOB PRODUCTION FROM 1983 TO 1993 THE PRIVATESECTOR JOB FORCE INCREASED BY 4 IN NEW YORK AND CLOSE TO 25 NATIONWIDE IN THE 1980S NEW YORK RANKED 47 OUT OF THE 50 STATES IN JOB PRODUCTION HAD NEW YORK BEEN AT THE MEAN IT MIGHT WELL HAVE PAID ITS BILLS DESPITE THE GOVERNOR'S INSATIABLE APPETITE FOR SPENDING OF COURSE THAT WAS MR CUOMO BEFORE HIS RECENT TRANSFORMATION MR CUOMO HAS NOTED ACCURATELY I MIGHT ADD THAT GOVERNMENT JOBS HAVE BEEN REDUCED SINCE NOVEMBER 1990 BUT HE NEGLECTS TO POINT OUT TO UNWARY AUDIENCES THAT HE HAS BEEN GOVERNOR SINCE 1983 SINCE 1990 THE STATE WORK FORCE HAS BEEN REDUCED BY 17414 JOBS MOSTLY THROUGH ATTRITION EVEN AFTER THIS REDUCTION IS CALCULATED THE STATE GOVERNMENT HAS HAD AN INCREASE OF 15256 JOBS OR A 743 INCREASE SINCE 1983 NEW YORK HAS 6219 STATE AND LOCAL EMPLOYEES PER 10000 IN THE POPULATION THE HIGHEST AMONG INDUSTRIAL STATES AND 19 ABOVE THE NATIONAL AVERAGE LAST IS THE CLAIM THAT NEW YORK HELD THE LINE ON TAXES EVEN IF ONE DOESN'T VIEW MANDATES AS AN ENFORCED LOCAL TAX INCREASE THERE IS STILL THE MATTER OF STATE TAXES AND FEES IN THE PAST FOUR YEARS COUNTING THE SUSPENSION OF THE LAST YEAR OF THE PROMISED TAX CUT TAXES HAVE GONE UP MORE THAN 1 BILLION EACH YEAR OF COURSE MR CUOMO CLAIMS THAT FEES AREN'T TAXES IF HE ACCEPTS THAT PREMISE THEN HE CAN DISCUSS HOLDING THE LINE ON TAXES WITH A STRAIGHT FACE DESPITE TWO TAX CUTS DURING HIS TENURE AND A REDUCTION IN THE TAX RATE THERE STILL HAS BEEN AN INCREASE OF 137 IN TAXES FOR EVERY TAX DOLLAR CUT ON BALANCE IT'S UNDERSTANDABLE THAT MR CUOMO HAS BEEN TRANSFORMED INTO A BORNAGAIN TAX CUTTER HE ORCHESTRATED THE FAILURE OF NEW YORK AND NOW IS GROPING FOR A REMEDY MR LONDON A REPUBLICAN RAN FOR GOVERNOR OF NEW YORK IN 1990 AND IS A CANDIDATE FOR 1994 HE IS A PROFESSOR OF HUMANITIES AT NEW YORK UNIVERSITY SEE RELATED LETTER LETTERS TO THE EDITOR CUOMO A REAL SUPPLYSIDER WSJ FEB 7 1994 9401200089 YY94 MM02 9402070168 940107 ATTENTION VOTERS ARUBA NASSAU AND JAMAICA ARE NOT IN AMERICA BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GEOGRAPHIC ILLITERACY REARS ITS UGLY HEAD AGAIN OR MAYBE THE FOLKS IN ATLANTA ARE SIMPLY THINKING WISHFULLY WHATEVER THE CAUSE VALUJET AIRLINES RECEIVED SOME FARFETCHED ENTRIES IN A RECENT CONTEST WHICH PUT THE CHOICE OF A NEW DESTINATION TO A POPULAR VOTE THE STARTUP CARRIER WHOSE BASE OF OPERATIONS IS ATLANTA ASKED ATLANTANS TO CHOOSE A TWELFTH MARKET FOR IT TO SERVE ALL OF ITS OTHER 11 MARKETS ARE IN THE SOUTHEAST THE ONLY CAVEAT THAT THE NEW DESTINATION BE WITHIN 400 MILES OF ATLANTA BECAUSE VALUJET SPECIALIZES IN SHORT HAULS MORE THAN HALF THE 7500 OR SO ENTRIES VALUJET RECEIVED WERE FOR CITIES WELL BEYOND THAT BOUNDARY LINE SCORES OF ENTRIES CAME IN FOR TOURIST DESTINATIONS SUCH AS SAN DIEGO 1887 MILES AWAY AND FOR SAN FRANCISCO 2135 MILES DISTANT AT 732 MILES NASSAU IN THE BAHAMAS WAS WELL BEYOND THE MILEAGE LIMIT IT'S ALSO OUTSIDE THE US AND VALUJET IS STRICTLY A DOMESTIC CARRIER THAT MEANT VOTES FOR ARUBA BERMUDA AND JAMAICA WERE ALSO OFF THE MAP VALUJET OFFICIALS DON'T KNOW WHETHER THE VOTERS DIDN'T READ THE RULES CORRECTLY WEREN'T REALLY SURE HOW FAR AWAY SOME OF THOSE CITIES WERE OR SIMPLY IGNORED THE RESTRICTIONS AND VOTED THEIR HEART'S DESIRE THE LATTER IS QUITE LIKELY GIVEN THAT VALUJET'S FARES START AT 39 ONE WAY SO IF A FARE THAT LOW IS A POSSIBILITY WHY NOT NOMINATE A ROUTE THAT MATTERS IF ONLY TO ONE VOTER LIKE BLAIRSVILLE GA WHICH IS WITHIN 400 MILES UNFORTUNATELY IT HAS ONLY 600 RESIDENTS AND NO COMMERCIAL AIRPORT IN FACT SEVERAL ENTRIES WERE FOR CITIES THAT HAVE NO COMMERCIAL SERVICE PERHAPS BECAUSE THEY HAVE NO COMMERCIAL AIRPORTS CHILLICOTHE OHIO FALLS IN THAT CATEGORY AS DOES FITZGERALD GA WHICH HAS ONLY A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS THAN VALUJET'S DC9S AFTER WEEDING OUT THE OUTLANDISH AND INELIGIBLE VALUJET PLANS TO ANNOUNCE THE CONTEST RESULTS THIS MORNING NAMING THE CITY IT WILL ADD TO ITS SCHEDULE STARTING MAY 1 AIRLINE OFFICIALS SAID THE TOP THREE VOTE GETTERS WERE CINCINNATI CHARLOTTE NC AND SAVANNAH GA NOT IN THE RUNNING MACON THAT GEORGIA TOWN WAS ONE OF 12 THAT WERE TOO NEAR FROM THE ATLANTA AIRPORT MACON'S ONLY 45 MINUTES AWAY SAID A VALUJET SPOKESWOMAN IT DOESN'T MAKE ANY SENSE TO FLY YOU'D SPEND ALL YOUR TIME IN TRAFFIC GETTING TO THE AIRPORT SEE RELATED LETTER LETTERS TO THE EDITOR GOOD LONG RUNWAY WSJ FEB 7 1994 9401070133 YY94 MM02 9402070164 940121 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA'S 1993 CRIME RATE GREW 62 THE SAME ANNUAL PACE SINCE 1982 BUT THE GOVERNMENT CITED THE ECONOMIC BOOM FOR A 23 INCREASE IN THE NUMBER OF SERIOUS CRIMES REPORTED MURDERS INCREASED 78 TO 32000 POLICE SAID THEY CRACKED 19000 DRUGTRAFFICKING CASES UP 32 FROM 1992 THEFTS AND ROBBERIES INCREASED 20 TO 450000 AUTHORITIES SAID THEY DETAINED 780000 GANG MEMBERS UP 56 MEANWHILE IN SHANGHAI 90000 BICYCLES WERE REPORTED STOLEN LAST YEAR CHINESE REFER TO THEIR COUNTRY AS THE KINGDOM OF BICYCLES SHANGHAI ALONE HAS SEVEN MILLION BIKES ONE FOR EVERY TWO PEOPLE SEPARATELY CHINA'S INDUSTRIAL OUTPUT IN DECEMBER SURGED A RECORD 35 TO 4616 BILLION FROM THE YEAREARLIER MONTH REFLECTING BEIJING'S RELAXATION OF CURBS ON LOANS TO STATE COMPANIES THAT HAD FORCED THEM TO LAY OFF WORKERS FOR LACK OF OPERATING FUNDS KAZAKHSTAN WAS ACCEPTED FOR MEMBERSHIP IN THE ASIAN DEVELOPMENT BANK WHICH SAID IT WOULD TREAT THE FORMER SOVIET REPUBLIC AS A TEST ECONOMY IN MOVING AWAY FROM STATE CONTROL THE BANK BASED IN MANILA SAID IT INTENDED TO HELP THE CENTRAL ASIAN COUNTRY MAKE A GRADUAL BUT SMOOTH TRANSITION TO A MARKETORIENTED ECONOMY BY RESTRUCTURING STATE ENTERPRISES SUPPORTING THE PRIVATE SECTOR AND ATTRACTING FOREIGN INVESTMENT HUNGARY'S HEALTH AGENCY SIGNED A JOINTVENTURE AGREEMENT WITH A US PHYSICIAN'S FLORIDA CONCERN TO SET UP THE COUNTRY'S FIRST PRIVATE FORPROFIT HOSPITAL THE HUNGARIANBORN DR STEPHAN J WITTMANN AN ANESTHETIST SAID THE 150BED HOSPITAL TO BE OPENED BY 1996 WILL COST BETWEEN 40 MILLION AND 75 MILLION THE GOVERNMENT DONATED THE LAND AT A FORMER SOVIET ARMY BASE IN SZENTENDRE A DOZEN MILES NORTH OF BUDAPEST THE HOSPITAL WITH MANAGEMENT NURSES AND EQUIPMENT TO BE IMPORTED FROM THE US IS TO SERVE ABOUT 200000 HUNGARIANS WHO CAN AFFORD PRIVATE HEALTH CARE IN A COUNTRY WHERE MOST MEDICAL TREATMENT IS PROVIDED BY THE STATE A BRITISH INVESTIGATION OF THE WORLD'S 12THWORST TANKER SPILL BLAMED THE SHIP'S CAPTAIN FOR THE ACCIDENT IN THE SHETLAND ISLANDS THE BRAER SPILLED 246 MILLION GALLONS OF OIL AFTER RUNNING AGROUND IN A SEVERE STORM ON JAN 4 1993 THE REPORT SAID THE GREEK CAPTAIN ALEXANDROS GELIS WAS DERELICT FOR FAILING TO PREVENT LOOSE STEEL PIPES FROM CAUSING DAMAGE THAT ALLOWED SEA WATER TO CONTAMINATE THE FUEL SUPPLY OF THE LIBERIANREGISTERED TANKER THE MAIN ENGINE AND GENERATOR FAILED AND THE CREW ABANDONED SHIP WHICH WAS DRIVEN ASHORE BY HURRICANEFORCE WINDS ITALY RATIFIED AN INTERNATIONAL CONVENTION ON MONEY LAUNDERING PARTICIPATING NATIONS ALLOW CONFISCATION OF PROFITS OR GOODS GAINED FROM CRIMINAL ACTIVITY LIFT BANKING SECRECY FOR INQUIRIES SHARE POLICE INFORMATION AND ADOPT COMMON INVESTIGATING TECHNIQUES THE ACCORD TO TAKE EFFECT MAY 1 IN ITALY IS IN FORCE IN BRITAIN BULGARIA THE NETHERLANDS AND SWITZERLAND RATIFICATION IS PENDING BY 15 OTHER NATIONS THAT HAVE SIGNED THE ACCORD FINNISH OPPOSITION TO JOINING THE EUROPEAN UNION SHRANK SIGNIFICANTLY IN THE PAST MONTH AN OPINION SAMPLING BY THE HELSINGIN SANOMAT NEWSPAPER FOUND IN A GALLUP POLL 41 OF THE RESPONDENTS FAVORED FINLAND'S MEMBERSHIP IN THE FORMER EUROPEAN COMMUNITY AND 27 OPPOSED IT IN DECEMBER A SIMILAR POLL FOUND 40 FOR AND 43 AGAINST THE EU APPLICATION THOSE WHO WERE UNDECIDED INCREASED TO 32 FROM 17 FINNS WILL VOTE ON EU MEMBERSHIP LATER THIS YEAR THE GOVERNMENT APPLIED TO JOIN IN 1992 AND HOPES TO BE ACCEPTED BY 1995 THE FRENCH FASHION HOUSE CHANEL APOLOGIZED TO THE MUSLIM WORLD SAYING IT UNWITTINGLY PUT VERSES OF THE KORAN ON DRESSES SHOWN IN ITS SUMMER COLLECTIONS IN THE PARIS SHOW LAST WEEKEND ARABIC WORDS WERE EMBROIDERED IN PEARLS ON A TORSOHUGGING BUSTIER AND OTHER DRESSES CHANEL DESIGNER KARL LAGERFELD WHOSE CLIENTELE INCLUDES ARABS SAID HE TOOK THE DESIGN FROM A BOOK ON INDIA'S TAJ MAHAL PALACE A GERMAN MR LAGERFELD SAID HE FOUND THE DESIGN AESTHETICALLY PLEASING AND WASN'T AWARE OF ITS MEANING AFTER A MUSLIM GROUP IN JAKARTA PROTESTED CHANEL SAID IT DESTROYED THE DRESSES WITH THE OFFENDING DESIGNS ALONG WITH NEGATIVES OF THE PHOTOS MADE OF THE GARMENTS IT ALSO APPEALED TO PRESS PHOTOGRAPHERS AND TELEVISION CREWS TO DO LIKEWISE CHANEL DENIED THAT IT FEARED REPRISALS FROM MUSLIMS FOR DESECRATING THE KORAN THE SACRED BOOK OF ISLAM IN 1989 IRAN'S REVOLUTIONARY ISLAMIC LEADER THE LATE AYATOLLAH RUHOLLAH KHOMEINI ORDERED THE DEATH OF THE BRITISH WRITER SALMAN RUSHDIE FOR HIS NOVEL THE SATANIC VERSES CONSIDERED BLASPHEMOUS BY MANY MUSLIMS RUSSIAN COAL OUTPUT LAST YEAR DECREASED 98 TO 305 MILLION METRIC TONS FROM A YEAR EARLIER AND EXPORTS TO COUNTRIES OUTSIDE THE FORMER SOVIET UNION DROPPED 53 TO 18 MILLION TONS TO SHED ITS WARRING PAST AND BUILD ITS TOURISM APPEAL CAMBODIA NEXT MONTH WILL STAGE EVENTS SUCH AS A PEDICAB RACE AND PERFORMANCES OF TRADITIONAL DANCES AND SONGS OTHER PLANNED ATTRACTIONS INCLUDE MEKONG RIVER BOAT RACES AND A MARATHON NEAR THE ANCIENT TEMPLES OF ANGKOR WAT SEE RELATED LETTER LETTERS TO THE EDITOR MUSLIM SCOWL BRINGS CHANEL TO ITS KNEES WSJ FEB 7 1994 9401210131 YY94 MM02 9402070162 940110 BLOCKBUSTER DEAL IS A SMART MOVE FOR ITS CHIEF BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT CORP'S AGREEMENT TO MERGE WITH VIACOM INC IS A CLEVER EXIT STRATEGY FOR ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA FROM WHAT MAY BE A DYING BUSINESS MANY ENTERTAINMENT EXECUTIVES SAY IT IS A BEAUTIFUL BAILOUT SAID ONE EXECUTIVE WHO KNOWS THE COMPANY AND MR HUIZENGA WELL SAYS ANOTHER PERSON WITH CLOSE TIES TO THE BLOCKBUSTER EXECUTIVE MAYBE HE KNOWS HE'S HIT A PLATEAU BLOCKBUSTER HAS TREMENDOUS MOMENTUM LARGELY THROUGH ITS 3593STORE VIDEO CHAIN IT GENERATES CASH FLOW OF NEARLY 500 MILLION A YEAR ITS BALANCE SHEET IS NEARLY DEBT FREE ITS EARNINGS GROWTH IS STUNNING IT HAS POSTED QUARTERLY INCREASES RANGING FROM 40 TO 64 IN THE LAST TWO YEARS AND ITS MANAGEMENT HAS REMAINED STEADFASTLY UPBEAT ABOUT THE COMPANY'S FUTURE MR HUIZENGA DENIES THAT THE MERGER WITH VIACOM IS RELATED TO CONCERNS ABOUT HOW TO KEEP THE GROWTH GOING DISMISSING THE IDEA WITH AN EXPLETIVE THIS GIVES OUR SHAREHOLDERS A MUCH BETTER STOCK TO HOLD HE SAYS OF THE DEAL WHICH WOULD COMBINE BLOCKBUSTER'S VIDEO AND MUSIC CHAINS AND STAKES IN TWO SMALL MOVIE STUDIOS WITH VIACOM'S MTV VH1 NICKELODEON AND SHOWTIME CABLE NETWORKS BUT A LOT OF COMMUNICATIONS EXPERTS DON'T SEE HOW BLOCKBUSTER CAN PRESERVE ITS EARNINGS RECORD IN THE FACE OF THE IMMINENT THREAT FROM PAYPERVIEW TELEVISION UNTIL RECENTLY MANY MEDIA EXECUTIVES BELIEVED THAT INHOME VIDEO SERVICE WAS AT LEAST A DECADE AWAY WITH TECHNOLOGICAL ADVANCES AND INDUSTRY CONSOLIDATION THE PROSPECT IS A LOT CLOSER TIME WARNER INC IS PLANNING A SPRING ROLLOUT OF A PROTOTYPE CABLE SYSTEM IN ORLANDO FLA THAT WILL FEATURE VIDEO ON DEMAND AND THE PHONE COMPANIES LIKE BELL ATLANTIC CORP ARE RACING TO IMPLEMENT TECHNOLOGY TO DELIVER MOVIES ON DEMAND OVER PHONE LINES DESPITE DIVERSIFICATION ATTEMPTS THE MAJORITY OF BLOCKBUSTER'S REVENUE COMES FROM VIDEO RENTAL MR HUIZENGA INSISTS THAT'S NOTHING TO WORRY ABOUT BLOCKBUSTER'S SHARE OF THE US VIDEO RENTAL MARKET IS ONLY 15 HE SAYS AND WILL BE BOLSTERED BY GOBBLING UP MOMANDPOP OUTLETS EVEN AFTER INTERACTIVE PAYPERVIEW COMES ON LINE WE WILL STILL BE IN A BETTER POSITION IN VIDEO RENTAL REVENUE IN THE YEAR 2000 THAN WE ARE TODAY HE SAYS BUT IT WILL BE A SHRINKING MARKET AS EARLY AS 1996 THE VIDEORENTAL BUSINESS WILL BE ERODING AT A RATE OF ABOUT 10 A YEAR ACCORDING TO ROGER SIBONI MANAGING PARTNER OF KPMG PEAT MARWICK'S COMMUNICATIONS PRACTICE INDEED BLOCKBUSTER HAS BEEN AGGRESSIVELY PURSUING DIVERSIFICATION STRATEGIES FOR THREE YEARS IN LATE 1992 IT BEGAN BUYING MUSIC RETAILERS IT HAS SINCE ACQUIRED SOUND WAREHOUSE MUSIC PLUS TURTLE'S AND RECORD BAR A YEAR AGO BLOCKBUSTER AGREED TO BUY A MINORITY INTEREST IN REPUBLIC PICTURES KNOWN FOR HAVING PRODUCED JOHN WAYNE MOVIES AND OTHER CLASSIC WESTERNS IN MARCH IT BOUGHT A CONTROLLING STAKE IN SPELLING ENTERTAINMENT GROUP INC WHICH PRODUCES THE HIT TV SHOW BEVERLY HILLS 90210 AND OWNS THE RIGHTS TO SUCH SHOWS AS DYNASTY AND THE LOVE BOAT IN THE LAST YEAR MR HUIZENGA HAS TALKED ABOUT BUILDING A VERTICALLY INTEGRATED FAMILYENTERTAINMENT COMPANY WITH THEME PARKS AND MEGASTORES MARKETING CDS VIDEOS AND INTERACTIVE GAMES AND BEGINNING IN APRIL HE HAD SECRETLY BEGUN TALKING TO VIACOM ABOUT JOINT VENTURES AND ABOUT MERGING THE COMPANIES BEGINNING LAST FALL FOR BLOCKBUSTER GOING IT ALONE WOULD BE COSTLY AND TIMECONSUMING EVEN IN THE SHORTERTERM THE NEW RECORD AND MOVIE PRODUCTION BUSINESSES COULDN'T MATCH THE GROSS PROFIT MARGINS OF VIDEO RENTALS WHICH CAN BE AS HIGH AS 70 COMPARED WITH ABOUT 10 FOR RECORD STORES ACCORDING TO ANALYSTS SOME INDUSTRY EXECUTIVES BELIEVED THAT BLOCKBUSTER'S MOVE INTO NONRENTAL AREAS WOULD EVENTUALLY HURT BOTH THE COMPANY'S EARNINGS AND ITS CACHET AS A HIGHGROWTH STOCK WHICH IS WHY SOME BLOCKBUSTER SHAREHOLDERS WHO WERE INITIALLY PUT OFF BY THE VIACOM DEAL APPEARED TO BE WARMING TO IT BY LATE YESTERDAY THIS IS AN INSURANCE POLICY AGAINST BLOCKBUSTER GOING EXTINCT SAYS LARRY HAVERTY A MONEY MANAGER FOR STATE STREET RESEARCH IN BOSTON ONE OF BLOCKBUSTER'S LARGEST SHAREHOLDERS AND BLOCKBUSTER HAS BEEN SUCH A GROWTH STOCK CLEVERLY USING ITS HIGH STOCK PRICE TO FURTHER EXPANSION THROUGH ACQUISITIONS PARTIALLY PAID FOR WITH STOCK THAT ALMOST ANY SLOWDOWN IN ITS MAIN BUSINESS COULD CAUSE BIG PROBLEMS FOR ITS SHARES ITS STOCK PRICE SOARED LAST YEAR FROM ABOUT 18 A SHARE IN JANUARY TO ABOUT 30 BY YEAR'S END AS THE COMPANY REPORTED EARNINGS GAINS OF MORE THAN 50 IN EACH OF THE FIRST THREE QUARTERS EARNINGS MOMENTUM IS HOW THAT COMPANY HAS BEEN SOLD TO THE STREET SAYS PAUL MARSH A SECURITIES ANALYST WITH NATWEST SECURITIES CORP MR HUIZENGA IS A MASTER AT KEEPING HIS STOCK PRICE PROPPED UP SAYS AN ENTERTAINMENT INDUSTRY EXECUTIVE THAT THE STOCK DIDN'T TAKE A LONGTERM HIT ON THE BASIS OF TECHNOLOGICAL OBSOLESENCE IS A WONDER IN ITSELF STILL MANY BLOCKBUSTER SHAREHOLDERS SHARED MR HUIZENGA'S OPTIMISM ABOUT BLOCKBUSTER'S PROSPECTS AS A STANDALONE COMPANY SO MUCH SO THAT INITIALLY MANY WERE ANGRY ABOUT THE MERGER I'M SHOCKED JUST TOTALLY SHOCKED SAID ONE LARGE SHAREHOLDER WHO BELIEVED BLOCKBUSTER'S STOCK WOULD REACH 50 A SHARE ON ITS OWN THE MERGER PROPOSAL VALUES BLOCKBUSTER STOCK AT ABOUT 31 A SHARE A MODEST 10 PREMIUM TO ITS FRIDAY CLOSE OF 28375 SOME SHAREHOLDERS BELIEVED THE DEAL MAY ATTRACT RIVAL BIDDERS FOR BLOCKBUSTER THE PLAN HAS BEEN APPROVED BY BOTH COMPANIES' BOARDS AND IS SUBJECT TO SHAREHOLDER APPROVAL MR HUIZENGA DEFENDS THE MERGER'S TERMS BY ARGUING THAT BLOCKBUSTER'S SHARES HAVE BEEN TRADING NEAR AN ALLTIME HIGH WHILE VIACOM'S STOCK IS DEPRESSED BECAUSE OF ITS BID FOR PARAMOUNT COMMUNICATIONS INC IF VIACOM'S CLASS A AND B SHARES RETURN TO THEIR PREPARAMOUNT LEVELS BLOCKBUSTER'S STOCK VALUE COULD BE MORE THAN 40 MR HUIZENGA SAYS THAT IS A BIG BIG PREMIUM HE ADDS HE SAYS THAT DURING THE LATEST ROUND OF DISCUSSIONS THE TWO COMPANIES EXAMINED 15 TO 20 SCENARIOS INCLUDING MAKING VIACOM A LOAN BUYING STOCK CONVERTIBLES BUYING SELECTED VIACOM ASSETS AND MAKING A JOINT BID FOR PARAMOUNT EVERYTHING LED BACK TO THE STRENGTHS OF THE COMPANIES TOGETHER MR HUIZENGA SAYS EVEN IF IT DOESN'T GET PARAMOUNT MR HUIZENGA SEES VIACOMBLOCKBUSTER ONE DAY PRODUCING FEATURE FILMS THAT WILL BE DISTRIBUTED FIRST THROUGH MOVIE THEATERS OWNED BY VIACOM CHAIRMAN SUMNER REDSTONE THEN THROUGH BLOCKBUSTER'S VIDEO STORES AND THEN ON VIACOM'S SHOWTIME CABLE NETWORK ONE OF BLOCKBUSTER'S BIGGEST ASSETS IS A DATABASE FILLED WITH MORE THAN 30 MILLION CUSTOMER NAMES AND INFORMATION ABOUT THEIR PREFERENCES IN ACTORS DIRECTORS AND MOVIE GENRES THAT WOULD BE HELPFUL IN MARKETING FILMS BLOCKBUSTER ALSO COULD PROMOTE ITS MUSIC CHAIN ON VIACOM'S MTV AND VH1 NETWORKS IN ADDITION MR HUIZENGA SAYS VIACOMBLOCKBUSTER CAN SHED REDUNDANT OPERATIONS AND SAVE ABOUT 200 MILLION A YEAR IN ADDITION TO HIS NEW POSITION AS VICE CHAIRMAN OF VIACOMBLOCKBUSTER MR HUIZENGA SAYS HE WILL REMAIN CEO AT THE BLOCKBUSTER SUBSIDARY HE HAS NO EMPLOYMENT CONTRACT HOWEVER HE SAYS HE EXPECTS TO HAVE A MUCH BIGGER MANAGEMENT ROLE IF THE COMPANY WINS PARAMOUNT SEE RELATED LETTER LETTERS TO THE EDITOR REPEATING NONSENSE WSJ FEB 7 1994 9401100087 YY94 MM02 9402070158 940105 CHAMBERS OF HORRORS SELFSTORAGE LOCKERS OFTEN HARBOR SECRETS BOMBS DRUGS TOXIC WASTE AND EVEN MURDER VICTIMS HAVE BEEN STASHED AWAY BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CHARLES OSTERHOLM AND HIS STEPFATHER BID 8990 FOR THE CONTENTS OF A LOCKER AT A SEATTLEAREA SELFSTORAGE WAREHOUSE THEY HOPED TO STRIKE GOLD THEY KNEW FROM OPERATING A THRIFT SHOP THAT LOCKERS UNDER LEASE FOR A LONG TIME LIKE THIS ONE COULD HARBOR SOMETHING OF REAL VALUE WHAT THEY BOUGHT HOWEVER WERE THE RATHER DRAB BELONGINGS OF A FEDERAL WAY WASH HOUSEHOLD ENOUGH FURNITURE CLOTHING AND OTHER POSSESSIONS TO FILL A SMALL TRUCK TWICE THE MEN WERE PERPLEXED WE DIDN'T UNDERSTAND WHY SOMEONE HAD SPENT THAT MUCH MONEY FOR THAT MANY YEARS STORING THAT MUCH GARBAGE MR OSTERHOLM SAYS THE REASON SOON BECAME CLEAR BURIED UNDER PILES OF CLOTHING THEY FOUND THE WIFE AND TWO SONS OF CAR SALESMAN MARK J BENDER ALL KILLED WITH A HATCHET THE YOUNGEST BOY HAD BEEN WRAPPED IN HIS BEDDING HIS HEAD STILL NESTLED AGAINST HIS SNOOPY PILLOW SUDDENLY MR OSTERHOLM SAYS EVERYTHING MADE SENSE IT WAS THE KIND OF SITUATION THAT LATELY HAS BECOME AN ACUTE EMBARRASSMENT TO THE SELFSTORAGE INDUSTRY CRIMINALS HAVE DISCOVERED THAT SELFSTORAGE UNITS THOSE GARAGELIKE STRUCTURES OUTSIDE NEARLY EVERY CITY IN AMERICA CAN BE TERRIFIC PLACES TO STORE BOMBS DRUGS AND BODIES AND TO DUMP TOXIC CHEMICALS TOO DIFFICULT TO DISPOSE OF LEGALLY THE ANNALS OF STORAGE ABUSE INCLUDE SUCH WELLPUBLICIZED CRIMES AS THE WORLD TRADE CENTER BOMBING INVESTIGATORS FOUND SUSPICIOUS CHEMICALS POSSIBLY BOMB INGREDIENTS IN A LOCKER ALLEGEDLY RENTED BY A SUSPECT AND THE 1992 KIDNAPPING AND MURDER OF EXXON CORP EXECUTIVE SIDNEY RESO WHO DIED IN A STORAGE UNIT WHERE HE HAD BEEN HELD CAPTIVE NO ONE KNOWS WHAT ELSE OR WHO ELSE MAY BE STORED IN AMERICA'S 918 MILLION SQUARE FEET OF SELFSTORAGE SPACE IF YOU WERE SUPERMAN AND YOU TRIED OUT YOUR XRAY VISION ON THESE THINGS YOU'D CERTAINLY BE SHOCKED SAYS JAMES NEILSON A BOMB TECHNICIAN WITH THE AUSTIN TEXAS POLICE HIS SQUAD GETS SUMMONED TO STORAGE UNITS FOUR OR FIVE TIMES A YEAR HE SAYS LAST JULY IT REMOVED SEVEN BOMBS AND INCENDIARY BOOBY TRAPS FROM ONE STORAGE UNIT COMPANIES PROTEST THAT THE VAST MAJORITY OF SELFSTORAGE CUSTOMERS ARE LAWABIDING CITIZENS WE RENT PROBABLY 300000 UNITS A YEAR SAYS MICHAEL ROWE PRESIDENT OF SHURGARD STORAGE CENTERS WHICH OWNS THE COMPLEX WHERE THE BENDER FAMILY WAS FOUND THE PROBLEMS WE'VE HAD YOU COULD PROBABLY DESCRIBE ON ONE HAND OR LESS THAN TWO THE APPEAL OF SELFSTORAGE TO CROOKS HOWEVER SHOULD COME AS NO SURPRISE UNLIKE OPERATORS OF TRADITIONAL WAREHOUSES WHO ACCEPT LEGAL RESPONSIBILITY FOR THE THINGS THEY HOUSE SELFSTORAGE COMPANIES LONG AGO JOINED TOGETHER TO CRAFT MODEL LEGISLATION ADOPTED BY MOST STATES THAT ELIMINATES ANY LEGAL LIABILITY FOR A CUSTOMER'S POSSESSIONS EVEN MEMBERS OF THE INDUSTRY CONCEDE THAT SOME OF ITS COMMON PRACTICES MAY INVITE CRIMINAL MISUSE SELFSTORAGE BECAME A HOT BUSINESS IN THE 1970S AS INVESTORS DISCOVERED THAT THESE VAST COMPLEXES MANY WITH 300 OR MORE STORAGE SPACES COULD BE BUILT ON CHEAP LAND AND RUN AT PRETAX PROFIT MARGINS APPROACHING 70 SECURITY IS MINIMAL ACCORDING TO AN INDUSTRY SURVEY ONLY 22 OF THE NATION'S SELFSTORAGE FACILITIES HAVE ANY KIND OF CAMERA OR VIDEO SURVEILLANCE TO KEEP COSTS DOWN CRITICS SAY COMPANIES PAY THEIR MANAGERS POORLY GIVING THEM LITTLE INCENTIVE TO MONITOR INCOMING MATERIALS SAYS BOB WINET A SANTA MONICA CALIF STORAGEUNIT OPERATOR CRITICAL OF HOW COMPANIES PAY THEIR ONSITE MANAGERS OUR INDUSTRY HAS GOTTEN AWAY WITH MURDER AS THE INDUSTRY GREW SOME MARKETS BECAME SATURATED AS IN THE SOUTH AND WEST INSIDERS FEAR THAT AGGRESSIVE MARKETING TACTICS IN PARTICULAR THE DOLLARAMONTH PROMOTIONS OF PUBLIC STORAGE INC OF GLENDALE CALIF THE LARGEST SELFSTORAGE COMPANY MAKE RENTAL RATES IRRESISTIBLE TO CRIMINALS WHEN YOU CHEAPEN WHAT YOU HAVE TO A POINT WHERE IT BECOMES JUST TOTALLY ACCESSIBLE YOU'RE INVITING PROBLEMS SAYS RONALD BOORSTEIN A PAST PRESIDENT OF THE SELF STORAGE ASSOCIATION HARVEY LENKIN CHAIRMAN OF PUBLIC STORAGE MANAGEMENT INC WHICH MANAGES ALL THE COMPANY'S FACILITIES DISAGREES IF PEOPLE WANT TO DUMP STUFF HE SAYS THEY'RE GOING TO DUMP STUFF WHETHER YOU CHARGE 1 A MONTH OR 50 A MONTH HE SAYS CRIMINAL MISUSE OF PUBLIC STORAGE UNITS IS INFINITESIMAL STILL POLICE HAVE FOUND EXPLOSIVES STOLEN GOODS AND THE BODY OF A MURDER VICTIM IN PUBLIC STORAGE FACILITIES LAST JULY CUSTOMERS OF A PUBLIC STORAGE COMPLEX IN HOLLYWOOD COMPLAINED OF AN UNPLEASANT ODOR SEEPING FROM AN ADJACENT LOCKER INSIDE POLICE FOUND A CEMENTFILLED FREEZER THAT CONTAINED THE BODY OF CHARLES DEDAVIES A 29YEAROLD MAN STRANGLED A WEEK EARLIER IN SCOTTSDALE ARIZ THE KILLERS HAD NEEDED 15 MEN MOST OF THEM DAYLABORERS FROM THE SURROUNDING NEIGHBORHOOD TO MOVE THE HEAVY FREEZER FROM THEIR TRUCK INTO THE LOCKER ACCORDING TO ONE SUSPECT IN SOME CASES SELFSTORAGE UNITS HAVE SERVED FOR YEARS AS THE BASE OF OPERATIONS FOR THRIVING CRIMINAL ENTERPRISES THE FEDERAL BUREAU OF INVESTIGATION IN 1992 EXPOSED AN EXTENSIVE FRAUD RUN LARGELY FROM STORAGE UNITS IN LONG ISLAND NY MEDICAID RECIPIENTS ACQUIRED EXPENSIVE PRESCRIPTION DRUGS AT NO CHARGE THEN RESOLD THEM INTO A BLACKMARKET NETWORK OF BUYERS AND DISTRIBUTORS THESE DISTRIBUTORS IN TURN SOLD THE DRUGS AT DEEP DISCOUNT TO CROOKED PHARMACISTS WHO RESOLD THEM TO CONSUMERS AT FULL PRICE POCKETING THE DIFFERENCE THIS WAS BIG BUSINESS ONE SUSPECT WAS ARRESTED WITH 500000 AND DRUGS VALUED AT 1 MILLION THE NEWEST BRAND OF CRIMINAL MISUSE TOXIC DUMPING MAY AT LAST HAVE BEGUN TO ERODE THE INDUSTRY'S LAISSEZFAIRE ATTITUDE OPERATORS HAVE FOUND THAT EVEN THE INDUSTRY'S OWN LAWS CAN'T DEFLECT LIABILITY FROM SUCH CRIMES UNDER FEDERAL SUPERFUND LEGISLATION THE OWNER OF A PROPERTY ON WHICH POLLUTANTS ARE DUMPED IS JUST AS LIABLE FOR THE COSTS OF ANY CLEANUP AS THE DUMPER HIMSELF SUCH COSTS CAN BE HIGH IN ONE RECENT CASE A SHURGARD COMPLEX OUTSIDE SAN FRANCISCO PAID 200000 THE EQUIVALENT OF MORE THAN 5000 MONTHS OF RENT ON A STANDARD 5BY10 CHAMBER TO CLEAN UP A CACHE OF 1000 CHEMICALS LEFT BY A TENANT THE FEAR OF SUCH OUTLAYS HAS DRIVEN COMPANIES TO STEP UP SECURITY MANAGEMENT CO OF LITTLE FERRY NJ HAD TO PAY 39000 TO CLEAN UP CHEMICALS LEFT BY TWO DIFFERENT TENANTS SAYS KENNETH COOLEY PRESIDENT NOW IN A DEPARTURE FROM INDUSTRY PRACTICE ACCESS RESERVES THE RIGHT TO INSPECT UNITS AND INSISTS RENTERS PROVIDE A COPY OF THE KEYS TO THEIR PADLOCKS SELFSTORAGE RENTERS TYPICALLY SUPPLY THEIR OWN LOCKS THE COMPANY ALSO INSTALLED DUALEXPOSURE CAMERAS THAT SIMULTANEOUSLY PHOTOGRAPH THE RENTER AND A PORTION OF THE LEASE OFTEN HOWEVER THERE IS LITTLE A COMPANY CAN DO TO KEEP CRIMINALS FROM MISUSING ITS STORAGE CHAMBERS SHURGARD FOR EXAMPLE INHERITED THE BENDER LOCKER WHEN IT ACQUIRED ANOTHER COMPANY'S COMPLEX THE BODIES CAME TO LIGHT IN 1992 WHEN MR BENDER'S SECOND WIFE ANGRY AT WRITING A MONTHLY CHECK TO STORE WHAT SHE BELIEVED WERE HIS EXWIFE'S BELONGINGS STOPPED PAYMENT WITHOUT TELLING HIM WHEN SEATTLE DETECTIVES CAUGHT UP WITH HIM MR BENDER BY THEN A USEDCAR SALESMAN AT HAPPY DAYS FORD IN NAMPA IDAHO WAS STUNNED AND SOON CONFESSED TO THE MURDERS I THOUGHT THE STORAGE UNIT WAS PAID FOR HE SAID THE FAMILY HAD BEEN THERE FOR 12 YEARS SEE RELATED LETTER LETTERS TO THE EDITOR CONCERNING YOUR VIEW OF SOCIETY HORRORS WSJ FEB 7 1994 9401050067 YY94 MM02 9402070067 940131 BUSINESS BRIEFS MYERS INDUSTRIES INC AKRON OHIO SAID IT ACQUIRED CERTAIN ASSETS AND OPERATIONS OF NORTHWEST TIRE SHOP SUPPLY CO OF PORTLAND OREGON MYERS INDUSTRIES MAKES REUSABLE PLASTIC STORAGE SYSTEMS AND DISTRIBUTES EQUIPMENT AND SUPPLIES FOR THE TIRE SERVICING AND REPAIR INDUSTRIES TERMS WEREN'T DISCLOSED COLTEC INDUSTRIES INC PINE BLUFF ARK COMPLETED THE SALE OF ITS CENTRAL MOLONEY TRANSFORMER DIVISION TO THE DIVISION'S SENIOR MANAGERS THE SALE FOLLOWS COLTEC'S STRATEGY TO FOCUS ON DIVISIONS SERVING AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL MARKETS TERMS WEREN'T DISCLOSED HORIZON HEALTHCARE CORP ALBUQUERQUE NM ACQUIRED THE ASSETS OF MEDICAL DIAGNOSTIC SERVICE INC A CARDIOPULMONARY AND RADIOLOGY ULTRASOUND CONCERN SERVING NEVADA NORTHERN ARIZONA AND EASTERN CALIFORNIA TERMS WEREN'T DISCLOSED MATRIX SERVICE CO TULSA OKLA SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE BROWN STEEL CONTRACTORS INC NEWMAN GA THE ACQUISITION IS EXPECTED TO BE COMPLETED BY MIDAPRIL BANKWORCESTER CORP WORCESTER MASS SAID ITS SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE INSTITUTION BY BANK OF BOSTON CORP PENDING REGULATORY APPROVAL BANK OF BOSTON AGREED IN SEPTEMBER TO ACQUIRE BANKWORCESTER FOR 34 A SHARE OR ABOUT 247 MILLION ALCO STANDARD CORP'S UNISOURCE UNIT OF VALLEY FORGE PA ACQUIRED HOPACO THE HAWAIIAN PAPER DISTRIBUTION ARM OF PAPERPRODUCT COMPANY BOISE CASCADE CORP TERMS WEREN'T DISCLOSED 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 9402040194 940204 P&G PLANS TO ENTER STOPSMOKING FIELD IN PACT WITH CYGNUS CINCINNATI PROCTER & GAMBLE CO AND CYGNUS THERAPEUTIC SYSTEMS FORMED AN AGREEMENT TO DEVELOP SMOKINGCESSATION PRODUCTS INCLUDING NICOTINE PATCHES THE MOVE IS P&G'S FIRST FORAY INTO THE 350 MILLION INDUSTRY P&G WILL MAKE AN INVESTMENT IN CYGNUS AND HAVE EXCLUSIVE WORLDWIDE MARKETING RIGHTS TO PRODUCTS MANUFACTURED BY CYGNUS SPECIFIC TERMS WEREN'T DISCLOSED THIS IS ONE OF SEVERAL ALLIANCES THAT P&G WITH ABOUT 30 BILLION IN ANNUAL SALES HAS FORMED WITH SMALL PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES P&G DOESN'T CURRENTLY OFFER SMOKINGCESSATION PRODUCTS WHICH ARE TYPICALLY OBTAINED BY PRESCRIPTION ONLY HOWEVER DON TASSONE A SPOKESMAN FOR P&G SAID THE MOVE INTO A NEW INDUSTRY IS CONSISTENT WITH P&G'S GOAL OF BRINGING SUPERIOR TECHNOLOGIES TO MARKET CYGNUS REDWOOD CITY CALIF MAKES ADVANCED DRUG DELIVERY SYSTEMS AND ITS PRODUCTS INCLUDE NICOTROL A NICOTINE TRANSDERMAL PATCH FOR SMOKING CESSATION AS IS THE CASE WITH P&G CYGNUS TYPICALLY DEVELOPS AND MANUFACTURES PRODUCTS AND LICENSES THE MARKETING TO PARTNERS CRAIG CARLSON A CYGNUS SPOKESMAN SAID JOHNSON & JOHNSON OWNS NORTH AMERICAN MARKETING RIGHTS TO NICOTROL MR CARLSON SAID THE ALLIANCE WITH P&G IS FOR THE DEVELOPMENT OF NICOTINE TRANSDERMAL PATCHES WHICH ARE NOT THE SAME AS NICOTROL HE ADDED THAT THE AGREEMENT IS FOR A MINIMUM OF TWO PRODUCTS P&G AND CYGNUS DECLINED TO DISCUSS WHEN THE NEW PRODUCTS WILL BE AVAILABLE ALTHOUGH SMOKINGCESSATION PRODUCTS GENERATE 350 MILLION IN ANNUAL SALES MR CARLSON SAID MANY IN THE INDUSTRY BELIEVE THE FOOD AND DRUG ADMINISTRATION MAY SOME DAY APPROVE THE SALE OF SMOKINGCESSATION PRODUCTS FOR OVERTHECOUNTER SALE SO THE POTENTIAL MARKET IS LARGER THE ANNOUNCMENT CAME AFTER THE CLOSE OF TRADING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING P&G CLOSED AT 59 UP 25 CENTS CYGNUS CLOSED AT 1050 DOWN 375 CENTS IN NASDAQ STOCK MARKET TRADING 9402040193 940204 BUSINESS BRIEF ITT CORP REPORTS PROFIT OF 219 MILLION FOR FOURTH QUARTER NEW YORK ITT CORP REPORTED HEALTHY FOURTHQUARTER EARNINGS AGAINST A YEAREARLIER LOSS AND SAID IT HAS PUMPED 800 MILLION INTO ITS ITT SHERATON HOTEL UNIT WHICH IS PURSUING CASINO PROPERTIES THAT COULD INVOLVE AS MUCH AS 1 BILLION IN INVESTMENTS FOR THE QUARTER THE COMPANY REPORTED NET INCOME OF 219 MILLION OR 177 A SHARE COMPARED WITH A LOSS OF 617 MILLION OR 533 A SHARE A YEAR EARLIER AS OPERATING PROFIT ROSE THROUGHOUT MOST BUSINESS SEGMENTS SALES DECLINED 2 TO 598 BILLION FROM 610 BILLION IN 1992 ITT SAID THE LOS ANGELES EARTHQUAKE CREATED MORE PROBLEMS THAN ORIGINALLY EXPECTED FOR ITS ITT HARTFORD PROPERTY AND CASUALTY OPERATIONS CHAIRMAN RAND V ARASKOG SAID THE COMPANY EXPECTS ABOUT 28 MILLION IN PRETAX LOSSES IN THE FIRST QUARTER FROM THE QUAKE AND AN ADDITIONAL 18 MILLION IN PRETAX LOSSES FROM THE RECENTLY BRUTAL WINTER WEATHER AT FIRST WE THOUGHT IT WAS NOT SO BAD MR ARASKOG SAID THE 1993 FOURTH QUARTER INCLUDED TAXRELATED CHARGES OF 26 MILLION OR 21 CENTS A SHARE A CHARGE OF 19 MILLION OR 16 CENTS A SHARE FOR ACCELERATED WRITEDOWNS AT ITS ITT SHERATON HOTELS UNIT A GAIN OF 7 MILLION OR SIX CENTS A SHARE FROM ITS SALE OF A STAKE IN BALLY'S LAS VEGAS OPERATIONS AND A GAIN OF 10 MILLION OR EIGHT CENTS A SHARE ON THE SALE OF A COMPONENTS DISTRIBUTION COMPANY THE 1992 FOURTH QUARTER INCLUDED NEARLY 800 MILLION IN PRETAX RESTRUCTURING CHARGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITT GAINED 150 TO 100875 A 52WEEK HIGH AN ITT OFFICIAL SAID THE COMPANY IN THE FOURTH QUARTER CONVERTED ABOUT 800 MILLION OF ITT SHERATON DEBT TO EQUITY AND CHAIRMAN RAND V ARASKOG SAID THE UNIT EXPECTS TO MAKE SIGNIFICANT ANNOUNCEMENTS SOON IN ITS GAMBLING OPERATIONS IT'S OBVIOUS THAT THEY HAVE PLANS FOR SHERATON SAID JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER INC HE AND SOME OTHER ANALYSTS THINK ONE POSSIBILITY MIGHT BE TO SPIN OFF PART OF SHERATON TO BE PUBLIC 9402040192 940204 MEN'S WEARHOUSE SALES SURGED FREMONT CALIF MEN'S WEARHOUSE SAID JANUARY SALES ROSE 447 TO 272 MILLION FROM 188 MILLION A YEAR AGO THE APPAREL RETAILER SAID SALES ROSE 212 AT STORES OPEN AT LEAST ONE YEAR 9402040191 940204 PIER I IMPORTS' SALES FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES AT STORES OPEN MORE THAN ONE YEAR DROPPED 36 IN THE FOURWEEK PERIOD ENDED SATURDAY TOTAL SALES FOR THE PERIOD WERE ESSENTIALLY FLAT AT 412 MILLION THE SPECIALTY RETAILER SAID 9402040190 940204 CANADIAN STEEL OUTPUT CLIMBS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 235616 METRIC TONS IN THE WEEK ENDED JAN 29 A 13 INCREASE FROM 232501 TONS IN THE PREVIOUS WEEK ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY THE TOTAL REPRESENTED A 16 DECLINE FROM 279074 TONS A YEAR EARLIER A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS 9402040189 940204 HEILIGMEYERS SALES JUMP 45 RICHMOND VA HEILIGMEYERS CO SAID JANUARY SALES ROSE ABOUT 45 TO AN ESTIMATED 504 MILLION FROM 349 MILLION A YEAR AGO WHILE SAMESTORE SALES ROSE 84 FOR THE ELEVEN MONTHS ENDED IN JANUARY SALES ROSE ABOUT 31 TO AN ESTIMATED 6568 MILLION FROM 5024 MILLION WHILE SAMESTORE SALES ROSE ABOUT 12 HEILIGMEYERS IS A FURNITURE RETAILER OPERATING 571 STORES IN 22 STATES 9402040188 940204 TANDY POSTS HIGHER SALES FORT WORTH TEXAS TANDY CORP SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 5 IN THE US IN JANUARY THE RETAILER OF CONSUMER ELECTRONICS GOODS SAID SALES AT ALL US STORES WERE UP 18 TO 323 MILLION FROM 2737 MILLION 9402040187 940204 JAMESWAY SALES FALL SECAUCUS NJ JAMESWAY CORP SAID SALES FOR THE FOUR WEEKS ENDED JAN 29 FELL NEARLY 16 TO 25 MILLION FROM 296 MILLION WHILE SAMESTORE SALES FELL 5 THE DISCOUNT DEPARTMENTSTORE CHAIN WHICH OPERATES STORES IN SEVEN MIDATLANTIC STATES SAID THE REDUCTION IN SALES REFLECTS SEVERE WEATHER AND THE DECLINE IN STORES TO 94 THIS YEAR FROM 108 A YEAR AGO SALES FOR THE 52 WEEKS ENDED JAN 29 FELL 16 TO 7222 MILLION FROM 856 MILLION WHILE SAMESTORE SALES FELL 8 9402040186 940204 NEW YORK BANKRUPTCIES DECLINE NEW YORK NEW BANKRUPTCY FILINGS HERE DECLINED SLIGHTLY TO 34099 IN 1993 FROM 34897 A YEAR EARLIER ACCORDING TO PUBLIC DATA CORP A PRIVATE SUBSCRIPTION DATABASE COMPANY FOR THE FIRST HALF 1993 FILINGS IN THE CITY WERE AT A RECORD HIGH LEVEL BUT TRAILED OFF IN THE LAST SIX MONTHS OF THE YEAR THE COMPANY SAID 9402040185 940204 SOLO SERVE POSTS SALES GAIN THE OFFPRICE RETAILER SAID THAT SALES FOR THE FISCAL YEAR ENDED SATURDAY INCREASED 96 TO 1692 MILLION FROM 1544 MILLION COMPARABLESTORE SALES DECREASED 58 9402040184 940204 GOTTSCHALKS SALES RISE FRESNO CALIF GOTTSCHALKS INC SAID JANUARY SALES ROSE 14 TO 193 MILLION FROM 169 MILLION A YEAR AGO SAMESTORE SALES INCREASED NEARLY 11 ON A YEARTODATE BASIS SAMESTORE SALES AT THE DEPARTMENTSTORE CHAIN ROSE 33 TO 342 MILLION FROM 331 MILLION 9402040183 940204 GYMBOREE SALES ARE HIGHER BURLINGAME CALIF GYMBOREE CORP SAID JANUARY SALES ROSE 42 TO 88 MILLION FROM 62 MILLION A YEAR AGO SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE 7 DURING THE PERIOD THE CHILDREN'SWEAR CHAIN SAID THE LOS ANGELES EARTHQUAKE AFFECTED 13 OF ITS STORES WITH THREE STILL CLOSED EXCLUDING THE 13 STORES FOR THE TWO WEEKS FOLLOWING THE EARTHQUAKE JANUARY SALES FOR THE 152STORE CHAIN ROSE 45 AND SAMESTORE SALES WERE UP 10 GYMBOREE SAID 9402040182 940204 DRESS BARN SALES DECLINE STAMFORD CONN DRESS BARN INC SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY FELL 10 TO 163 MILLION FROM 182 MILLION WHILE SALES AT STORES OPEN FOR AT LEAST A YEAR DROPPED 18 FOR THE 13 WEEKS ENDED SATURDAY SALES ROSE 82 TO 1066 MILLION FROM 985 MILLION WHILE SAMESTORE SALES FELL 4 THE RETAILER OF WOMEN'S OFFPRICE APPAREL STORES IN 41 STATES OPERATED 657 STORES AS OF SATURDAY A 10 INCREASE FROM A YEAR AGO THE COMPANY SAID SALES WERE HURT BY THE SEVERE COLD AND SNOWSTORMS 9402040181 940204 DILLARD'S SALES ARE UP LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC SAID SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE 3 FOR THE MONTH ENDED SATURDAY AND TOTAL SALES WERE UP 6 TO 2928 MILLION FROM 2769 MILLION DURING THE 12MONTH PERIOD ENDED SATURDAY TOTAL SALES ROSE 9 TO 51 BILLION FROM 47 BILLION SALES AT STORES OPEN AT LEAST ONE YEAR INCREASED 3 9402040180 940204 HILO SAMESTORE SALES ARE FLAT HOUSTON HILO AUTOMOTIVE INC SAID JANUARY SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR WERE ESSENTIALLY FLAT WHEN COMPARED WITH JANUARY 1993 TOTAL SALES ROSE 10 TO 16 MILLION FROM 145 MILLION 9402040179 940204 50OFF STORES POSTS GAINS SAN ANTONIO DISCOUNTAPPAREL RETAILER 50OFF STORES INC SAID SALES AT STORES OPEN FOR AT LEAST A YEAR INCREASED 25 IN THE FIVEWEEK PERIOD ENDED LAST FRIDAY AND THAT TOTAL SALES FOR THE PERIOD ROSE 11 FROM A YEAR EARLIER FOR THE FOURTH QUARTER ENDED FRIDAY COMPARABLESTORE SALES WERE ESSENTIALLY FLAT AND FOR FISCAL YEAR 1994 50OFF SAID SUCH SALES WERE DOWN MORE THAN 10 TOTAL SALES FOR THE QUARTER INCREASED 11 TO 686 MILLION FROM 616 MILLION AND FOR THE YEAR GREW 10 TO 1997 MILLION FROM 181 MILLION 9402040178 940204 TENNECO UNIT TO REDEEM NOTES HOUSTON TENNECO INC SAID A UNIT WOULD PAY 250 MILLION TO REDEEM NOTES THE UNIT TENNECO CREDIT CORP WILL REDEEM ALL OF ITS 8 3/8 NOTES DUE FEB 1 1997 THE COMPANY SAID THE NOTES WILL BE REDEEMED FEB 28 AT 100 OF PRINCIPAL PLUS INTEREST ACCRUED FROM FEB 1 1994 TO FEB 28 1994 CHASE MANHATTAN BANK IS THE REDEMPTION AGENT A SPOKESWOMAN FOR TENNECO INC A MANUFACTURING AND GASPIPELINE CONCERN SAID THE REDEMPTION WAS PART OF AN OVERALL PLAN TO REDUCE THE COMPANY'S DEBT 9402040177 940204 TRANSCO UNIT REPAIRS GAS LINE HOUSTON TRANSCONTINENTAL GAS PIPE LINE CORP A UNIT OF TRANSCO ENERGY CO SAID IT COMPLETED REPAIRS TO ITS NATURALGAS TRANSMISSION MAIN LINE IN ROCKVILLE MD AFTER A THIRDPARTY CONTRACTOR PUNCTURED THE LINE WHILE WORKING WITH A BACKHOE TUESDAY REPAIRS WERE COMPLETED BY WEDNESDAY EVENING AND THE 30INCH LINE WAS BACK IN SERVICE YESTERDAY MORNING THE BACKHOE HIT ONE OF FOUR PARALLEL NATURALGAS LINES LOCATED NEAR ROUTE 28 AND RESEARCH BOULEVARD THAT ARE PART OF THE COMPANY'S MAIN PIPELINE SYSTEM NO ONE WAS INJURED THE NATURAL GAS WAS REROUTED TO ADJACENT LINES AND DELIVERIES WEREN'T AFFECTED 9402040176 940204 BABBAGE'S QUARTERLY SALES DALLAS BABBAGE'S INC SAID A SUBSTANTIAL DECLINE IN SALES OF VIDEO GAME SYSTEMS AND SOFTWARE DROVE COMPARABLESTORE SALES DOWN 13 IN ITS FOURTH QUARTER ENDED SATURDAY THE FIGURES REPRESENT SALES AT STORES OPEN FOR AT LEAST A YEAR TOTAL SALES INCREASED TO 1028 MILLION UP ONLY 2 FROM 1007 MILLION A YEAR EARLIER SALES FOR FISCAL YEAR 1994 INCREASED 12 TO 2334 MILLION FROM 2092 MILLION AND SALES AT STORES OPEN MORE THAN A YEAR ENDED THE 52WEEK PERIOD DOWN 5 THE SOFTWARE RETAILER SAID IT CUT PRICES ON VIDEO GAME SOFTWARE TITLES IN EARLY DECEMBER AND HAD REDUCED ITS INVENTORY BY MORE THAN 25 PER STORE COMPARED WITH THE SAME TIME A YEAR EARLIER 9402040175 940204 VALUE CITY POSTS LOWER SALES COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY FELL 73 TO 33 MILLION FROM 356 MILLION A YEAR AGO SALES AT STORES OPEN FOR AT LEAST A YEAR DECREASED 91 THE COMPANY SAID HOWEVER TOTAL SALES FOR THE 26 WEEKS ENDED SATURDAY ROSE 29 TO 4871 MILLION FROM 4736 MILLION THE COMPANY ATTRIBUTED THE DECLINE IN MONTHLY SALES TO THE EFFECTS OF THE SEVERE WINTER WEATHER IN THE MIDWEST AND NORTHEAST WHERE ITS STORES ARE LOCATED VALUE CITY OPERATES A CHAIN OF 75 FULLLINE DISCOUNT DEPARTMENT STORES 9402040174 940204 INTERNATIONAL VW RETRACTS REMARKS MADE ON GM CASE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN JUST ONE DAY AFTER FLAUNTING A MINOR LEGAL VICTORY OVER GENERAL MOTORS CORP VOLKSWAGEN AG WAS FORCED TO EAT ITS WORDS ABOUT BROAD EXONERATION IN AN ONGOING INDUSTRIAL ESPIONAGE DISPUTE IN A HUMILIATING REVERSAL OF STATEMENTS MADE WEDNESDAY VW CONCEDED YESTERDAY THAT A FRANKFURT DISTRICT COURT JUDGE NEVER SAID THERE WAS NO PROOF GM DOCUMENTS MADE THEIR WAY TO VW AND PROMISED NOT TO REPEAT THAT FALSE ASSERTION ON WEDNESDAY THE COURT DISMISSED GM'S CASE TO GET SEVEN OF ITS FORMER STAFFERS TEMPORARILY BARRED FROM WORKING AT RIVAL VW UPON THAT DECISION THE GERMAN AUTO MAKER HAD ISSUED A TRIUMPHANT STATEMENT TOUTING ITS SUCCESS IN THE CIVIL CASE VW'S STATEMENT ALSO CLAIMED DISTRICT COURT JUDGE GUENTHER KINNEL HAD ADDED IN HIS ORAL STATEMENTS THAT CRIMINAL ALLEGATIONS THAT GM DOCUMENTS MADE THEIR WAY TO VW COULD NOT BE PROVEN VW SPOKESMEN WENT ON TO SUGGEST THAT THE JUDGE THEREBY EXONERATED VW NOT ONLY OF THE LABORPOACHING CHARGES BUT ALSO IN THE SEPARATE BROADER SCANDAL OVER WHETHER FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA ABSCONDED WITH SENSITIVE GM DOCUMENTS WHEN HE JUMPED TO THE GERMAN CAR MAKER LAST MARCH AFTER THESE ASSERTIONS WERE BROUGHT TO THE ATTENTION OF JUDGE KINNEL HE CALLED VW'S LAWYERS TO HIS CHAMBERS AND ENCOURAGED THE COMPANY TO ISSUE A PUBLIC RETRACTION VW DID SO SAYING IT MADE A REGRETTABLE MISTAKE IN PUBLICIZING REMARKS THE JUDGE NEVER ACTUALLY MADE VW SAID ITS STATEMENT WEDNESDAY CONTAINED A MISINTERPRETATION OF THE ORAL STATEMENTS OF THE JUDGE HE DID NOT MAKE ANY STATEMENT ON THE STATE OF EVIDENCE CONCERNING WHETHER SECRET DOCUMENTS REACHED VOLKSWAGEN AG VW OFFERED NO EXPLANATION AS TO HOW THE MISINTERPRETATION OF THE JUDGE'S REMARKS CAME ABOUT JUDGE KINNEL COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR THE DARMSTADT PUBLIC PROSECUTOR'S OFFICE WHICH HAS BEEN INVESTIGATING THE INDUSTRIALESPIONAGE ALLEGATIONS FOR MONTHS CALLED IT COMPLETE RUBBISH FOR VW TO IMPLY THAT A JUDGE IN A CIVIL COURT COULD OR WOULD MAKE A STATEMENT HAVING ANY BEARING ON THE CRIMINAL INVESTIGATIONS THE QUESTION OF INDUSTRIAL ESPIONAGE ISN'T IN THE JURISDICTION OF THE CIVIL COURT AND WAS THEREFORE NOT COMMENTED ON IN THE 17PAGE DECISION THE PUBLIC RELATIONS BLUNDER COMES AS THE LATEST IN A SERIES OF ACTIONS THAT UNDERMINE VW'S CREDIBILITY WITH THE PUBLIC WHEN THE INDUSTRIALESPIONAGE ALLEGATIONS FIRST ERUPTED MR LOPEZ AND THE SEVEN MEN WHO FOLLOWED HIM TO VW SAID THEY HAD TAKEN NOTHING WITH THEM EXCEPT WHAT THEY HAD IN THEIR HEADS AFTER BOXES STUFFED FULL OF GM DOCUMENTS WERE FOUND THE STORY WAS AMENDED DOCUMENTS MAY HAVE BEEN TAKEN THEY SAID BUT THEY WEREN'T SECRET DOCUMENTS MR LOPEZ LATER CONFIRMED THAT HE AND HIS COLLEAGUES HAD SHREDDED MANY GM DOCUMENTS SHORTLY AFTER LEAVING THE COMPANY TO PREVENT THEM FROM INADVERTENTLY FALLING INTO VW HANDS FOR NOW THE INVESTIGATION CONTINUES HOWEVER NO CHARGES HAVE BEEN FILED AND MR LOPEZ DENIES ANY WRONGDOING 9402040173 940204 SAGE TECHNOLOGIES SEEKS LISTING STAMFORD CONN SAGE TECHNOLOGIES INC SAID IT INTENDS TO APPLY FOR LISTING ON THE NEW YORK STOCK EXCHANGE SEPARATELY THE COMPANY NAMED ERNST & YOUNG INDEPENDENT AUDITORS FOR THE COMPANY SAGE SAID IT HAD NO DISAGREEMENTS WITH ITS FORMER INDEPENDENT AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSURE MATTERS BUT WANTED AN ACCOUNTING FIRM WITH A NATIONAL PRESENCE SAGE PROVIDES COMPUTER PRODUCTS AND SERVICES TO COMMERCIAL AND GOVERNMENTAL USERS PRINCIPALLY THROUGH ITS AMERIDATA UNIT 9402040172 940204 TODAY'S MAN JANUARY SALES ROSE MOORESTOWN NJ TODAY'S MAN INC SAID SALES FOR THE FOUR WEEKS ENDED JAN 29 ROSE 11 TO 126 MILLION FROM 113 MILLION SALES AT STORES OPEN AT LEAST A YEAR DECLINED 6 SALES FOR THE 12 MONTHS ENDED JAN 29 ROSE 26 TO 1671 MILLION FROM 1326 MILLION WHILE SAMESTORE SALES ROSE 38 TODAY'S MAN OPERATES 21 MENSWEAR SUPERSTORES IN THREE NORTHEASTERN REGIONAL MARKETS 9402040171 940204 INDUSTRY FOCUS OFFICEVACANCY DECLINE GIVES LANDLORDS LITTLE RELIEF NET EFFECTIVE RENTS ERODED IN MANY CITIES IN 1993 A SURVEY INDICATES BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH OFFICEVACANCY RATES DROPPED IN MANY CITIES LAST YEAR THE FINANCIAL SQUEEZE ON OWNERS OF MANY NEWER BUILDINGS ACTUALLY TIGHTENED THE GOOD NEWS IS THAT A RECOVERY IS UNDER WAY SAID RAYMOND TORTO OF TORTO WEATON RESEARCH AN ARM OF CB COMMERCIAL INC A LOS ANGELESBASED BROKERAGE FIRM THE BAD NEWS IS THAT BUILDING OWNERS ARE NOT OUT OF THE WOODS YET THE AVERAGE METROPOLITAN VACANCY RATE DROPPED TO AN EIGHTYEAR LOW OF 176 LAST YEAR THE FIRM REPORTED BUT IT REMAINED HIGH ENOUGH THAT TENANTS SEEKING NEW SPACE COULD STILL PUSH HARD FOR BARGAINS CONSEQUENTLY MANY OFFICEUSERS WHOSE LEASES EXPIRE IN THE NEXT YEAR OR TWO WILL STILL HAVE THE WELCOME OPPORTUNITY TO CUT RENTAL COSTS THEIR SAVINGS WILL COME AT THE EXPENSE OF ALREADY HARDPRESSED DEVELOPERS AS WELL AS BANKS AND INSURANCE COMPANIES THAT GOT STUCK WITH BUILDINGS WHEN THE PREVIOUS OWNERS DEFAULTED ON THEIR LOANS STILL THE DECLINING VACANCY RATE MAY PROMPT MANY OF THEM TO HOLD ONTO THE PROPERTIES UNTIL RENTS START TO RECOVER VACANCY RATES ARE A LEADING INDICATOR BUT NET EFFECTIVE RENTS ARE WHERE THE RUBBER MEETS THE ROAD SAID CRAIG HATKOFF OF NEW YORKBASED VICTOR CAPITAL GROUP WHICH HELPS BANKS AND INSURANCE COMPANIES DETERMINE WHAT TO DO WITH FORECLOSED PROPERTIES BECAUSE VACANCY RATES IN MOST MARKETS REMAINED HIGH ENOUGH TO GIVE TENANTS THE UPPER HAND IN LEASE NEGOTIATIONS NET EFFECTIVE RENTS ERODED LAST YEAR IN NINE OF THE 12 MARKETS SURVEYED BY JULIEN J STUDLEY INC A NEW YORKBASED BROKERAGE FIRM NET EFFECTIVE RENTS THE BOTTOM LINE RETURN TO THE LANDLORDS BEFORE DEBT PAYMENTS ARE WHAT'S LEFT FOR THE OWNER AFTER OPERATING EXPENSES REALESTATE TAXES AND TENANT CONCESSIONS ARE TAKEN INTO ACCOUNT OWNERS OF POST1988 OFFICE BUILDINGS IN CHICAGO ACTUALLY LOST 132 PER SQUARE FOOT ON THE AVERAGE NEW 10YEAR LEASE AND OWNERS IN DOWNTOWN LOS ANGELES LOST 53 CENTS A FOOT ACCORDING TO THE SURVEY IT SHOWS HOW FAR BUILDING OWNERS HAVE TO GO TO GET BACK TO ECONOMIC STABILITY SAID STUDLEY CHAIRMAN JULIEN STUDLEY FEW PEOPLE REALIZE HOW FAR DOWN THEY ARE CHICAGOBASED SAM ZELL WHO HAS BEEN GROWING HIS NATIONAL OFFICE PORTFOLIO BY BUYING FORECLOSED PROPERTIES FROM LENDERS SAID OWNERS WHO WRITE BREAKEVEN OR MONEYLOSING LEASES ARE TRYING TO CUT THEIR LOSSES WHAT THEY'RE SAYING TO TENANTS IS I'LL GIVE YOU YOUR SPACE FOR FREE IF YOU CARRY MY OPERATING COSTS FOR 10 YEARS' IN 10 YEARS THAT'S WHEN THEY START SEEING A RETURN MR ZELL SAID THAT ABOUT THE ONLY OWNERS WHO CAN AFFORD TO WRITE SUCH LEASES ARE DEEPPOCKETED DEVELOPERS THOSE WHO HAVE RESTRUCTURED THEIR DEBT OR LENDERS WHO HAVE TAKEN BUILDINGS BACK THERE ARE VERY FEW OWNERDEVELOPERS LEFT WHO ARE STILL ALIVE HE SAID OWNERS OF NEWER BUILDINGS IN ATLANTA BALTIMORE BOSTON HOUSTON WEST LOS ANGELES PHILADELPHIA AND SAN FRANCISCO ALSO SAW EFFECTIVE RENTS DROP LAST YEAR THE SURVEY REPORTED IN WASHINGTON AND IN MIDTOWN AND DOWNTOWN MANHATTAN THEY SAW MODEST INCREASES SLOWLY DECLINING VACANCY RATES HOWEVER ARE EXPECTED TO REVERSE THE DOWNWARD TREND IN MOST CITIES BUT NOT RIGHT AWAY ACCORDING TO NEW YORKBASED CUSHMAN & WAKEFIELD ANOTHER NATIONAL BROKERAGE FIRM AVERAGE VACANCY RATES IN CENTRAL BUSINESS DISTRICTS DROPPED TO 187 AT YEAR END FROM A RECORD 196 A YEAR EARLIER IN THE SUBURBS RATES FELL TO 189 FROM 204 ONE REASON FOR THE IMPROVEMENT IS THAT NEW CONSTRUCTION PLUNGED TO JUST FOUR MILLION SQUARE FEET LAST YEAR FROM 26 MILLION IN 1992 THE FIRM SAID WITH 40 OF NEW 1993 BUILDING CONCENTRATED IN THE RELATIVELY HEALTHY MARKETS OF WASHINGTON SUBURBAN MARYLAND AND NORTHERN VIRGINIA IT'S GOOD NEWS FOR LANDLORDS BUT SOME OF THEM ARE GOING TO HAVE A LONG ROW TO HOE BEFORE THEY GET BACK TO POSITIVE YIELDS SAID ARTHUR MIRANTE II CUSHMAN & WAKEFIELD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN THE ABSENCE OF NEW CONSTRUCTION REALESTATE EXPERTS SAY RECOVERY WILL HINGE ON THE CREATION OF WHITECOLLAR JOBS FOR EXAMPLE BECAUSE OF THE RAPID GROWTH OF NATIONSBANK CORP AND FIRST UNION CORP BOTH OF CHARLOTTE NC THAT CITY'S VACANCY RATE PLUNGED TO 98 LAST YEAR FROM 198 IN 1992 ACCORDING TO CB COMMERCIAL THE LARGEST DROP OF THE 50 MARKETS IT TRACKS THEY GOBBLED UP VIRTUALLY ANYTHING THAT WOULD BE CONSIDERED CLASS A OR CLASS B PROPERTY SAID THOMAS O'BRIEN WHO HEADS THE FIRM'S CHARLOTTE OFFICE AFTER DROPPING FROM A PEAK OF ABOUT 23 A SQUARE FOOT THREE YEARS AGO TO 1650 CHARLOTTE OFFICE RENTS HAVE NOW JUMPED BACK UP TO ABOUT 18 HE SAID OWNERS ARE ALSO BENEFITING FROM THE GENERAL EROSION OF CONCESSIONS LIKE FREE RENT TENANT IMPROVEMENTS AND PARKING ALLOWANCES SALT LAKE CITY FORT LAUDERDALE FLA KANSAS CITY MO AND ORLANDO FLA ALSO SAW VACANCY RATES DROP SIGNIFICANTLY OVER THE PAST YEAR ACCORDING TO CB COMMERCIAL IN TIGHTENING MARKETS OWNERS OFTEN FEEL THEY CAN TRIM OUTOFPOCKET EXPENSES WITHOUT RISKING TENANT LOSS THIS IS PARTICULARLY TRUE FOR LARGE BLOCKS OF PRIME SPACE WHICH ARE USUALLY THE FIRST TO BECOME SCARCE THE FIRST THINGS TO GO IN A TIGHTENING MARKETPLACE ARE THE OWNER'S SOFT COSTS THE RENT CONCESSIONS AND PROMISES TO PAY FOR CONSTRUCTION EXPLAINED BRUCE MOSLER VICE CHAIRMAN OF GALBREATH RIVERBANK A NEW YORKBASED BROKERAGE THE NEXT THING THAT GOES IS THE LANDLORD'S WILLINGNESS TO LOCK IN A LEASE FOR 15 YEARS IN WASHINGTON FOR EXAMPLE ONE OF THE HEALTHIEST OFFICE MARKETS IN THE NATION OWNERS HAVE BECOME FAR STINGIER ON CONCESSIONS THE STUDLEY SURVEY REVEALED AS A RESULT WASHINGTON SAW NET EFFECTIVE RENTS JUMP MORE THAN THE 11 OTHER CITIES SURVEYED WE DO THINK RENTS ARE STABILIZING SAID JEFF HINES PRESIDENT OF HOUSTONBASED HINES INTEREST WHICH OWNS OFFICE BUILDINGS NATIONWIDE BUT THEY MAY BE STABILIZING AT A VERY LOW RATE FOR A VERY LONG PERIOD OF TIME MR TORTO OF CB COMMERCIAL PREDICTED IN 1998 THE RENTS IN REAL TERMS WILL BE WHAT THEY WERE IN 1990 IT'S A GREAT SITUATION IF YOU'RE BUYING NOW BUT IF YOU'RE SITTING THERE TRYING TO RECOVER TO WHERE YOU WERE IN 1990 YOU'VE GOT FOUR MORE YEARS TO WAIT AND WITH MANY INSURANCECOMPANY LENDERS RELUCTANT TO EXTEND FIVEYEAR AND SEVENYEAR LOANS THAT ARE NOW COMING DUE THE BOTTOMING OUT OF THE MARKET HAS COME TOO LATE FOR SOME OWNERS LANDLORDS ARE STILL LOSING THEIR BUILDINGS SAYS MR STUDLEY BUT IT MAY BE THAT THE FINANCIAL INSTITUTIONS THAT ARE RECOVERING THE BUILDINGS WILL BE BETTER OFF THAN THEY ANTICIPATED 9402040170 940204 REX STORES' SALES INCREASE DAYTON OHIO REX STORES CORP SAID TOTAL SALES FOR JANUARY ROSE 30 TO 249 MILLION FROM 191 MILLION A YEAR AGO COMPARABLESTORE SALES ROSE 5 TO 182 MILLION FROM 173 MILLION THE COMPANY SAID TOTAL SALES FOR THE 1994 FISCAL YEAR WERE 2899 MILLION UP FROM 2257 MILLION IN FISCAL 1993 COMPARABLESTORE SALES FOR THE YEAR ROSE 8 THE SPECIALTY RETAILER OF CONSUMER ELECTRONIC PRODUCTS AND APPLIANCES SAID COMPARABLESTORE SALES ARE THOSE FOR STORES OPEN FOUR FULL FISCAL QUARTERS BUT THE COMPANY SAID THAT FROM NOW ON IT WILL CONSIDER A STORE TO BE COMPARABLE AFTER IT HAS BEEN OPEN FOR SIX FULL FISCAL QUARTERS 9402040169 940204 TOM BROWN'S RESERVES RISE 19 MIDLAND TEXAS TOM BROWN INC SAID ITS NATURALGAS AND OIL RESERVES INCREASED 19 LAST YEAR THE COMPANY SAID RESERVES INCREASED TO AN EQUIVALENT OF 151 BILLION CUBIC FEET OF NATURAL GAS FROM 127 BILLION CUBIC FEET A YEAR EARLIER TOM BROWN SAID GAS RESERVES INCREASED 25 TO 131 BILLION CUBIC FEET WHILE OIL RESERVES FELL 13 TO 33 MILLION BARRELS 9402040168 940204 INPUT/OUTPUT DISCOVERS OIL STAFFORD TEXAS INPUT/OUTPUT INC SAID IT DISCOVERED OIL IN MISSISSIPPI THE SEISMIC INSTRUMENT COMPANY SAID ITS EXPLORATION AND EXPLOITATION UNIT OUTPUT EXPLORATION CO REPORTED THE KING RANCH OIL & GAS INC NO 1 ATCHLEY 134 WELL FLOWED 1150 BARRELS OF OIL A DAY FROM THE NORPHELT FORMATION BELOW 14200 FEET AND 721 BARRELS OF OIL A DAY FROM THE SMACKOVER FORMATION BELOW 13926 FEET INPUT/OUTPUT SAID THE WELL THREE MILES SOUTH OF DESOTO MISS WILL BE COMPLETED FROM BOTH FORMATIONS AND PRODUCTION WILL BEGIN IN MARCH THE COMPANY SAID ITS UNIT OWNS A 50 WORKING INTEREST IN THE WELL THE OPERATOR KING RANCH OIL & GAS INC OWNS A 40 WORKING INTEREST AND A PRIVATE INVESTOR OWNS 10 9402040167 940204 WHO'S NEWS STANDARD MANAGEMENT CORP STANDARD MANAGEMENT CORP INDIANAPOLIS A WAYNE GRIFFITH RECENTLY RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF MARKETING OFFICER OF CONSECO INC WAS ELECTED A DIRECTOR OF THIS INSURANCE HOLDING COMPANY INCREASING BOARD MEMBERSHIP TO SEVEN 9402040166 940204 CHARMING SHOPPES SALES ARE FLAT BENSALEM PA CHARMING SHOPPES INC SAID SALES FOR THE FOUR WEEKS ENDED JAN 29 WERE 605 MILLION ABOUT FLAT WITH A YEAR AGO WHILE SALES AT STORES OPEN AT LEAST A YEAR FELL 9 THE APPAREL RETAILER WHICH OPERATES 1333 STORES IN 45 STATES UNDER THE NAMES FASHION BUG AND FASHION BUG PLUS SAID SEVERE WINTER STORMS HAD AN ADVERSE EFFECT ON SALES 9402040165 940204 STARBUCKS TOTAL SALES RISE 70 SEATTLE STARBUCKS CORP SAID TOTAL SALES FOR THE FOUR WEEKS ENDED JAN 30 ROSE 70 TO 165 MILLION FROM 97 MILLION A YEAR AGO SALES AT STORES OPEN AT LEAST 13 MONTHS INCREASED 12 9402040164 940204 BUSINESS BRIEF OWENSILLINOIS CUTS 10 OF WORK FORCE TAKES 355 MILLION 4THPERIOD CHARGE TOLEDO OHIO OWENSILLINOIS INC SAID IT IS SLASHING ITS US WORK FORCE BY 10 OR 2000 EMPLOYEES AND TAKING A CHARGE OF 355 MILLION OR 298 A SHARE FOR THE 1993 FOURTH QUARTER ON A PRETAX BASIS THE CHARGE TOTALS 575 MILLION AND INCLUDES 250 MILLION FOR RESTRUCTURING AND 325 MILLION TO HANDLE FUTURE ASBESTOS CLAIMS ANALYSTS HAD EXPECTED EARNINGS OF AS MUCH AS FIVE CENTS A SHARE THE CHARGES ARE EXPECTED TO PUSH THE COMPANY SHARPLY INTO THE LOSS COLUMN WHEN IT ANNOUNCES ITS EARNINGS NEXT WEEK THE ONETIME RESTRUCTURING CHARGE INCLUDES SEVERANCE AND EARLY RETIREMENT COSTS AND COSTS OF STREAMLINING FACTORY OPERATIONS OWENSILLINOIS SAID THE RESTRUCTURING PROGRAM WILL RESULT IN ANNUAL PRETAX SAVING OF 75 MILLION OR MORE BEGINNING IN 1994 THE COMPANY SAID THE RESTRUCTURING GREW OUT OF A COMPREHENSIVE REENGINEERING STUDY IN THE FOURTH QUARTER AND IS DESIGNED TO REDUCE COSTS IMPROVE EFFICIENCY AND ENHANCE CUSTOMER SERVICE THE GLASS AND PLASTIC PACKAGING MANUFACTURER SAID IN A STATEMENT THE WORK FORCE CUTBACKS WILL HIT AN ESTIMATED 2000 HOURLY WORKERS AT 21 GLASS PACKAGING PLANTS THROUGHOUT THE US THE COMPANY SAID THE COMPANY'S OVERSEAS OPERATIONS WON'T BE AFFECTED BY THE CUTBACKS SEPARATELY THE COMPANY TOOK A CHARGE OF 325 MILLION TO ACCOUNT FOR ANTICIPATED ASBESTOS LAWSUIT CLAIMS THE NUMBER OF CASES PENDING AGAINST THE COMPANY HAS BEEN REDUCED FROM A HIGH OF 92000 IN 1991 TO 43000 AS OF DEC 31 1993 ALTOGETHER THE COMPANY HAS DISPOSED OF 143000 CASES INCLUDING 31000 IN 1993 IT SAID THE COST OF SOME SETTLEMENTS HAS BEEN HIGHER THAN EXPECTED SAID THOMAS L YOUNG OWENSILLINOIS EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL BUT WE HAVE CUT OUR CASE BACKLOG IN HALF AND SIGNIFICANTLY REDUCED OUR EXPOSURE TO HIGHCOST CLAIMS THE COMPANY MAY NEED TO TAKE ADDITIONAL CHARGES IF IT LOSES A PENDING NEW JERSEY CASE IN WHICH IT IS SEEKING COVERAGE UNDER INSURANCE POLICIES FOR ASBESTOS CLAIMS BUT ONE ANALYST PRAISED THE WAY THE COMPANY IS REDUCING ITS MANUFACTURING COSTS AND ITS OUTSTANDING ASBESTOS LIABILITIES WHICH STEM FROM A BUSINESS UNIT THE COMPANY SOLD IN 1958 THIS IS GOING TO ADD BIG TIME TO THEIR EARNINGS SAID JOEL G TISS AN ANALYST WITH LEHMAN BROS THIS IS VERY POSITIVE FOR THE COMPANY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING OWENILLINOIS SHARES ROSE 25 CENTS APIECE TO 11875 9402040163 940204 ECONOMY FACTORY ORDERS ROSE 12 IN DECEMBER THE FIFTH CONSECUTIVE MONTHLY INCREASE BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS TO US FACTORIES ROSE FOR THE FIFTH CONSECUTIVE MONTH IN DECEMBER A FURTHER SIGN OF STRENGTH IN MANUFACTURING THAT COULD SPILL OVER INTO THIS YEAR THE COMMERCE DEPARTMENT REPORTED NEW ORDERS FOR ALL MANUFACTURERS ROSE 12 IN DECEMBER TO 26602 BILLION FROM 26277 BILLION THE PREVIOUS MONTH BASICALLY THE ECONOMY IS GOING GREAT GUNS RIGHT NOW SAID MERRILL LYNCH ECONOMIST BRUCE STEINBERG DURABLE GOODS POSTED ROBUST 21 GROWTH IN DECEMBER ABOUT THE SAME AS THE 22 ESTIMATE IN A PRELIMINARY REPORT LAST WEEK THIS INCREASE COMES ON THE HEELS OF 22 GROWTH IN NOVEMBER AND 26 IN OCTOBER ORDERS FOR NONDURABLE GOODS GAINED 02 IN DECEMBER THE DEPARTMENT SAID NEW ORDERS FOR THE WHOLE YEAR WERE UP 59 TO 3069 TRILLION ORDERS FOR DURABLE GOODS ACCOUNTED FOR MOST OF THE YEAR'S GROWTH RISING 87 WHILE NONDURABLES GREW ONLY 29 ORDERS OF NONDEFENSE CAPITAL GOODS EXCLUDING AIRCRAFT WENT UP 62 IN DECEMBER CONTINUING A SEVENMONTH CLIMB FOR THE FULL YEAR THESE ORDERS WERE UP 154 THE REPORT MEANS WE HAD STRONG INVESTMENT AND WILL BE ABLE TO COMPETE MORE EFFECTIVELY BY IMPROVING LABOR PRODUCTIVITY AND THE QUALITY OF GOODS SAID KURT KARL AN ECONOMIST FOR WEFA GROUP SEPARATELY THE FEDERAL RESERVE SAID IT WILL RELEASE REVISIONS TODAY ON ITS INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FIGURES DATING BACK TO 1990 SOME ANALYSTS ARE EXPECTING THE REVISIONS IN CAPACITY UTILIZATION OVER THE PERIOD TO BE SUBSTANTIALLY DOWNWARD THAT WOULD SUGGEST INFLATION IS WELL UNDER CONTROL AS HIGH UTILIZATION FIGURES ARE OFTEN ASSOCIATED WITH PRODUCTION BOTTLENECKS AND PRICE INCREASES THE FED'S MOST RECENT REPORT FOR NOVEMBER SHOWED INDUSTRY OPERATING AT 830 OF CAPACITY ALSO YESTERDAY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS SOARED LAST WEEK PROBABLY BECAUSE CLAIMS WERE HELD DOWN THE PREVIOUS WEEK BY COLD WEATHER AND THE MARTIN LUTHER KING HOLIDAY CLAIMS LAST WEEK SHOT UP 59000 TO 422000 THE HIGHEST SINCE JULY 1992 FROM A REVISED 363000 THE PREVIOUS WEEK THE FOURWEEK MOVING AVERAGE CONSIDERED A BETTER INDICATOR OF LABOR MARKET TRENDS ROSE TO 377250 FROM 361000 THE WEEK BEFORE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9402040162 940204 TALES OF HOTEL ROOM LOCKOUTS MAKE A CASE FOR WEARING PAJAMAS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS A COLD WINTER NIGHT AND PAUL SPERCO HAD NO IDEA HE WAS ABOUT TO BECOME JUST ANOTHER HOTEL STATISTIC HE OPENED THE DOOR TO HIS ROOM AT THE NOVOTEL NEW YORK PUSHED OUT HIS ROOMSERVICE CART AND CLICK THE DOOR CLOSED BEHIND HIM AND HE WAS KEYLESS I WALKED DOWN THE HALL LOOKING FOR A HOUSE PHONE TO CALL SOMEONE SAYS MR SPERCO A NORTH BRUNSWICK NJ AUTO DEALER THANK GOD I AT LEAST HAD MY UNDERWEAR ON MOST HOTELS DON'T TRACK HOW MANY UNFORTUNATE CUSTOMERS GET LOCKED OUT BUT NOVOTEL A 474ROOM PROPERTY BASED IN MANHATTAN'S THEATER DISTRICT DOES TWO YEARS AGO IT STARTED SURVEYING ITS EMPLOYEES TO SEE HOW THEIR TIME WAS SPENT MANAGEMENT DISCOVERED THAT SECURITY PERSONNEL WERE SPENDING TOO MUCH TIME UNLOCKING DOORS FOR STRANDED GUESTS 252 TIMES LAST YEAR IN MANY CASES THESE ACCIDENTAL TOURISTS MEET THEIR FATE THROUGH TRAVELERS' VANITY GUESTS WHO ORDER WINE OR BEER FOR THEIR ROOMS SOMETIMES PREFER TO PUSH THEIR BOTTLESTREWN TRAYS DOWN THE HALL SAYS STEVE BAKER SALES DIRECTOR FOR NOVOTEL A UNIT OF ACCOR GROUP IN PARIS PREOCCUPIED WITH GOOD APPEARANCES THESE GUESTS FORGET THAT THEIR OWN DOORS AUTOMATICALLY LOCK SHUT IF YOU DON'T HAVE YOUR FOOT IN THE DOOR AND YOU DON'T HAVE YOUR KEY YOU'RE OUT MR BAKER SAYS NOVOTEL WHICH CHARGES ABOUT 170 A NIGHT HAS SOME NICE AMENITIES SUCH AS MULTILINGUAL VOICE MAIL BUT THE HOUSE PHONES ON EACH OF THE HOTEL'S 27 FLOORS HAVE TURNED OUT TO BE ESPECIALLY IMPORTANT AFTER ALL THE NAKED WOMAN WHO LOCKED HERSELF OUT SHE WAS GETTING ICE MIGHT HAVE CAUSED A STIR ON THE ELEVATOR LOCKOUTS ARE NOT ALWAYS ACCIDENTAL ONE HAPLESS MAN WAS EVICTED FROM HIS ROOM BY HIS ANGRY WIFE AND SHOWED UP IN THE LOBBY IN HIS UNDERWEAR HE HAD NOWHERE ELSE TO GO MR BAKER SAYS ANOTHER TIME A SLEEPWALKING GUEST ENDED UP IN THE HALLWAY HE MEANT TO OPEN THE BATHROOM DOOR AND MISCALCULATED MR BAKER SAYS FOR ALL THE EMBARRASSMENTS LESS THAN 1 OF NOVOTEL'S GUESTS SUFFER OUTOFROOM EXPERIENCES AND THE TRENDS ARE PROMISING THE NUMBER OF NOVOTEL GUESTS WHO SHUT THEMSELVES OUT LAST YEAR FELL BY 3 COMPARED TO 1992 BUT NOVOTEL ISN'T TAKING ANY CHANCES WE'VE INCREASED THE SIGNAGE ON ALL THE FLOORS MR BAKER SAYS POINTING OUT THE HOUSE PHONES 9402040161 940204 WHO'S NEWS WARNERLAMBERT CO WARNERLAMBERT CO MORRIS PLAINS NJ S MORGAN MORTON 54 YEARS OLD PRESIDENT OF THE WORLDWIDE SHAVINGPRODUCTS GROUP AT THE HEALTHCARE AND CONSUMERPRODUCTS CONCERN WAS NAMED TO THE ADDITIONAL POSITION OF CORPORATE VICE PRESIDENT THE POSITION IS NEW 9402040160 940204 FUND MAILERS WRITE OF MODEST' RETURNS IN PREEMPTIVE STRIKE ON MARKET DECLINE BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK WHAT ARE MUTUAL FUNDS TELLING INVESTORS TO EXPECT THIS YEAR IF THE LETTERS THEY'RE SENDING TO SHAREHOLDERS OFFER ANY CLUES THE MESSAGES OF CHOICE ARE DON'T EXPECT 1993STYLE RETURNS FOREVER AND DON'T START SELLING JUST BECAUSE THE MARKETS BECOME UNCOOPERATIVE TAKE A YEAREND WRAPUP LETTER RECENTLY MAILED BY FIDELITY INVESTMENTS AFTER POINTING OUT STOCK FUNDS' HEADY PERFORMANCE IN THE '90S AGAINST MAJOR INDEXES IT DELIVERS A PROGNOSTICATION THROUGH THE REST OF THIS DECADE INVESTMENT RETURNS WILL PROBABLY BE MORE MODEST OTHER FIRMS BEGAN PREACHING A SIMILAR SERMON WELL BEFORE THE NEW YEAR FOR INSTANCE SCUDDER STEVENS & CLARK INC INVESTMENT ADVISERS TO SCUDDER FUNDS IN LATE SEPTEMBER ASKED INVESTORS WHETHER RECENT HIGH RETURNS HAD CAUSED THEIR EXPECTATIONS TO BECOME TOO HIGH EXPLAINING THAT RECORD GAINS IN BOTH STOCKS AND BONDS WERE PROVOKED BY TUMBLING INTEREST RATES THE SCUDDER LETTER ADVISED THAT FEW AREAS OF SIGNIFICANT UNDERVALUATION EXIST IN THE MARKETS WHICH MEANS FEWER OPPORTUNITIES FOR RETURNS OF THE SAME MAGNITUDE AS THOSE WE HAVE WITNESSED SINCE 1982 MOST ANY FIRM WOULD BE APT TO URGE CAUTION AFTER LOOKING AT 1993'S FIGURES ACCORDING TO LIPPER ANALYTICAL SERVICES DOMESTIC STOCK FUNDS RETURNED AN AVERAGE 1251 IN 1993 WHILE THE AVERAGE GAIN FOR WORLD EQUITY FUNDS WAS A WHOPPING 43 DOMESTIC TAXABLEBOND FUNDS AVERAGED A 966 RETURN THE NUMBERS CREATE SUCH POTENTIAL FOR FUTURE DISAPPOINTMENTS THAT FIDELITY ABANDONED ITS STANDARD OUTLOOK FORMAT WHICH TYPICALLY DEALS WITH SPECIFIC SECTORS OR FUNDS FOR A BROADER APPROACH TO SOME EXTENT PEOPLE IN 1993 BECAME A LITTLE BIT MORE SPECULATIVE THAN THEY HAVE IN YEARS PAST NEIL LITVACK FIDELITY'S EXECUTIVE VICE PRESIDENT OF MARKETING SAID IN AN INTERVIEW ALTHOUGH PLENTY OF INVESTORS REMAIN TOO RISKAVERSE FOR THEIR FINANCIAL GOALS HE SAID AN IMPORTANT PURPOSE OF THE LETTER WAS TO CAUTION CUSTOMERS WHO GOT THEIR FIRST TASTE OF INVESTING IN 1993 THOUGH THEY WERE LIKELY HANDSOMELY REWARDED FOR CHANCES THEY TOOK LAST YEAR'S SUCCESS DOESN'T MEAN THAT THEIR INVESTMENTS WERE THE RIGHT LONGTERM CHOICES HE ADDED THE SAME TONE PREVAILED IN RECENT INVESTOR LITERATURE FROM VANGUARD GROUP FUNDS LATE LAST YEAR THE FIRM MAILED INVESTORS A TWOPAGE QUESTIONANDANSWER INTERVIEW WITH CHAIRMAN JACK BOGLE THE SUBJECT RISK THE FORM LETTERS HOWEVER HAVE YET TO CHECK INVESTOR ENTHUSIASM MARKETING DEPARTMENTS REPORT STRONG STOCKFUND SALES WITH MANY PREDICTIONS THAT JANUARY WILL OUTPACE THE MONTHLY RECORD OF 145 BILLION IN SALES SET IN DECEMBER BUT FACING THE POSSIBILITY THAT THIS ENTHUSIASM COULD TURN QUICKLY TO DISMAY FUND LETTERS ARE WARNING INVESTORS NOT TO TRY TO PREDICT SHORTTERM MARKET MOVES AND THEIR LANGUAGE SUGGESTS AN EFFORT TO AVOID AN EPIDEMIC OF REDEMPTIONS IF MARKETS HEAD SOMEWHERE OTHER THAN NORTH FOR EXAMPLE A VANGUARD NEWSLETTER MAKING ITS WAY THROUGH THE POST FEATURES A POINT/COUNTERPOINT COLUMN THAT GIVES READERS A FACEOFF BETWEEN THE BULLS AND THE BEARS THE COLUMN'S SUMMARY HOWEVER ADDRESSES LONGTERM INVESTORS SAYING THE DEBATE IS LARGELY A DIVERSION RATHER THAN TRYING TO EXPLOIT PERCEIVED MARKET CONDITIONS POINT/COUNTERPOINT COUNSELS STAY THE COURSE REGARDLESS OF THE MOMENTARY WAXING AND WANING OF HOPES AND FEARS IN THE MARKETPLACE 9402040159 940204 ENTERPRISE ENTREPRENEURS VYING FOR GRADUATES THE GIANTS RECRUIT JOB SEEKERS COLLEGE PLACEMENT OFFICERS SEE BIG BENEFITS IN THINKING SMALL BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BIG BUSINESSES RECRUIT NEW COLLEGE GRADUATES NOWADAYS THEY INCREASINGLY ENCOUNTER NEW COMPETITION SMALL BUSINESSES MORE SMALLCOMPANY OWNERS ARE TURNING TO COLLEGES AND UNIVERSITIES TO FILL JOBS ENTREPRENEURS WHO ONCE HAD TO HUNT FOR THE CAMPUS WELCOME MAT NOW FIND PLACEMENT OFFICERS EAGER TO COURT THEM AT THE SAME TIME SMALL EMPLOYERS ALSO RECEIVE MORE ATTENTION FROM JOB SEEKERS DISCOURAGED BY WEAK PROSPECTS AT MANY LARGER COMPANIES MANY MORE MBA GRADUATES AND ALUMNI ARE GOING INTO STARTUP VENTURES SAYS LYNN SCHUMACHER DIRECTOR OF THE CENTER FOR PROFESSIONAL CAREER DEVELOPMENT AT DEPAUL UNIVERSITY IN CHICAGO HIRING BY SMALL BUSINESSES ALSO HAS SOARED RECENTLY AT ST LAWRENCE UNIVERSITY WE'RE LOOKING AT ABOUT 30 OF OUR 1993 GRADUATES GOING TO WORK FOR SMALL COMPANIES SAYS LEE SVETE DIRECTOR OF CAREER PLANNING FOR THE CANTON NY SCHOOL THAT PERCENTAGE WAS JUST 8 TO 10 THREE YEARS AGO SOME OF THESE COMPANIES I NEVER EVEN HEARD OF HE ADDS LAST SPRING ST LAWRENCE ASSISTED KEITH BESSE IN FINDING A TECHNICAL SALES REPRESENTATIVE FOR SAPPHIRE ENGINEERING INC HIS SMALL SPECIALTY MANUFACTURING FIRM IN NORTH FALMOUTH MASS MR BESSE SAYS THAT ST LAWRENCE HIS ALMA MATER LINED UP A POOL OF QUALIFIED APPLICANTS WITHIN TWO DAYS HE SELECTED SCOTT BISHOP AFTER INTERVIEWING NINE STUDENTS THE 1993 GRADUATE IS DOING A GREAT JOB MR BESSE SAYS THE TRADITIONAL COLLEGE PLACEMENT SYSTEM DOESN'T ALWAYS FIT THE NEEDS OF SMALL AND MIDSIZE COMPANIES HOWEVER THEIR HIRING PATTERNS DIFFER FROM THOSE OF BIG CONCERNS THEY DON'T SIT THERE IN JULY AND PLAN OUT A COLLEGE RECRUITING PLAN NOTES ROBERT GREENBERG DIRECTOR OF CAREER SERVICES AT THE UNIVERSITY OF TENNESSEE IN KNOXVILLE SMALLBUSINESS OWNERS TEND TO FILL VACANCIES AS THEY ARISE AND AREN'T INTERESTED IN TRAVELING TO DIFFERENT CAMPUSES TO FILL A POSITION DR GREENBERG SAYS IN FACT MANY ENTREPRENEURS LACK THE TIME TO CONDUCT ANY JOB INTERVIEWS ON CAMPUS SO PLACEMENT DIRECTORS ARE TAILORING THEIR SERVICES TO SUIT SMALLBUSINESS OWNERS HARVARD BUSINESS SCHOOL SAYS IT'S EXPLORING THE USE OF VIDEOCONFERENCING TO SPARE SMALL BUSINESSES THE CHORE OF GOING TO THE CAMPUS FOR INTERVIEWS SOME SCHOOLS ARE RUNNING JOB FAIRS AIMED AT SMALLBUSINESS OWNERS OTHERS ARE SPONSORING INTERNSHIP PROGRAMS TO FAMILIARIZE THEM WITH THE IDEA OF USING COLLEGE PLACEMENT OFFICES VICTOR R LINDQUIST DIRECTOR OF NORTHWESTERN UNIVERSITY'S PLACEMENT SERVICE SAYS HE RECENTLY SPENT 15 MINUTES ON THE PHONE HELPING A SMALLBUSINESS OWNER WRITE A JOB DESCRIPTION FOR AN INDUSTRIAL ENGINEER THE OWNER LATER POSTED THE VACANCY ON CAMPUS BOSTON UNIVERSITY'S SCHOOL OF MANAGEMENT ESTABLISHED A COMPUTERIZED JOBMATCHING SYSTEM FOR NEW AND RECENT GRADUATES DURING THE PAST YEAR SMALL AND MEDIUMSIZE FIRMS ARE HEAVILY USING THIS NEW SYSTEM OFFICIALS SAY THE SCHOOL ALSO EMPLOYS CAREER SEARCH A NEEDHAM MASS FIRM THAT LISTS 247000 BUSINESSES TO ASSIST GRADUATES IN LOCATING OTHER SMALLER EMPLOYERS NEARLY TWO DOZEN 1993 GRADUATES LANDED JOBS MANY OF THEM WITH SMALL BUSINESSES THROUGH CAREER SEARCH OR THE JOBMATCHING SYSTEM SCHOOL OFFICIALS REPORT PETER VERUKI DIRECTOR OF CAREER PLANNING AND PLACEMENT AT THE OWEN SCHOOL OF MANAGEMENT AT VANDERBILT UNIVERSITY SAYS THAT HE AND HIS STAFF COMPILED A LIST OF 5000 MOSTLY SMALLER BUSINESSES BY VISITING CHAMBERS OF COMMERCE IN SOUTHEASTERN CITIES NOW ONCE A YEAR MR VERUKI'S OFFICE SENDS THOSE COMPANIES PROFILE BOOKS DESCRIBING THE SCHOOL'S LATEST GRADUATES THE EFFORT HAS BEGUN TO PAY OFF WE'RE STARTING A FORMAL RECRUITING PROGRAM FOR COLLEGE GRADUATES THIS YEAR SAYS LEON KLEIN PRESIDENT OF SHARED RESOURCES MANAGEMENT INC AN INFORMATIONTECHNOLOGY SERVICES FIRM IN SUBURBAN ST PAUL MINN MR KLEIN INITIALLY HESITATED WHEN PAUL REDIN CAREERSERVICES DIRECTOR AT BETHEL COLLEGE IN ST PAUL MINN INVITED HIM TO RECRUIT LAST FALL INSTEAD MR KLEIN SELECTED ONE BETHEL STUDENT AS AN INTERN THE INTERN IS WORKING OUT SO WELL THAT MR KLEIN SAYS HE PLANS TO HIRE AT LEAST SEVEN COLLEGE GRADUATES THIS SPRING OUT OF THE 70 EMPLOYEES EXPECTED TO JOIN HIS 130 PERSON FIRM DURING 1994 SHARED RESOURCES'S REVENUE HAS GROWN 100 TO ABOUT 7 MILLION DURING THE PAST TWO YEARS HE NOTES WE'RE AT THE SIZE WHERE WE'RE BUILDING TEAMS AND WE CAN START EXPOSING COLLEGE GRADUATES TO PROJECTS SMALL BUSINESSES AREN'T ONLY FILLING ENTRYLEVEL SPOTS THROUGH THEIR EXPANDED COLLEGE RECRUITING BUSINESS SCHOOL GRADUATES MANY WITH EXTENSIVE WORK EXPERIENCE ARE ABLE TO HIT THE GROUND RUNNING AND CAN EVEN TAKE SENIORLEVEL MANAGEMENT POSITIONS AT SMALL BUSINESSES SAYS PAULA DESLATTE DIRECTOR OF CAREER SERVICES AT THE GRADUATE SCHOOL OF BUSINESS AT THE UNIVERSITY OF CHICAGO TWO YEARS AGO KURT CERULLI FOUNDED CERULLI ASSOCIATES INC A STRATEGICCONSULTING FIRM FOR FINANCIAL COMPANIES AFTER WORKING MANY YEARS FOR LARGER CONCERNS HE HIRED THREE OF THE BOSTON FIRM'S FIVE STAFF MEMBERS STRAIGHT OUT OF BUSINESS SCHOOL MY IDEAL CANDIDATE WAS SOMEONE COMING OUT OF BUSINESS SCHOOL WHO HAD THREE OR FOUR YEARS OF FINANCIALSERVICES EXPERIENCE MR CERULLI RECALLS ALL THREE SUCCESSFUL CANDIDATES BROUGHT SUCH EXPERIENCE AT CERULLI ASSOCIATES PEOPLE LACK TITLES AND SEPARATE OFFICES AND EVERY CONSULTANT GETS THE SAME SALARY AND BONUS BASED ON PROFITABILITY MR CERULLI SAYS THAT'S WHY HE SOUGHT HIGHLY MOTIVATED PEOPLE WHO MAY HAVE BEEN DISILLUSIONED BY THE POLITICS AND WASTE OFTEN FOUND IN A LARGER CORPORATE SETTING THAT DISILLUSIONMENT ALONG WITH THE DRASTIC REDUCTION IN JOB OPENINGS AT BIGGER COMPANIES HAS CHANGED MANY RECENT GRADUATES' NEGATIVE ATTITUDES ABOUT WORKING FOR SMALL BUSINESSES WHAT'S EXCITING ABOUT BEING WITH A SMALL COMPANY IS YOU'RE REALLY ESTABLISHING A PRECEDENT ALL THE RULES HAVEN'T BEEN WRITTEN YET SAYS 26YEAROLD ELI NEUSNER MR CERULLI HIRED MR NEUSNER LAST MAY AFTER HE RECEIVED AN MBA FROM BOSTON UNIVERSITY'S GRADUATE SCHOOL OF MANAGEMENT SCOTT BISHOP INTERVIEWED WITH 25 OR 35 MOSTLY LARGER COMPANIES BEFORE HE ACCEPTED SAPPHIRE ENGINEERING'S 30000AYEAR OFFER MOST OF HIS CLASSMATES WENT TO WORK FOR BIGGER CORPORATIONS BUT MR BISHOP DOESN'T REGRET HIS DECISION HE NOTES I GOT THE FEELING THAT IF I CAME TO WORK HERE I WOULDN'T JUST BE SOME NUMBER STUCK IN A CUBICLE 9402040158 940204 WHO'S NEWS INTERREGIONAL FINANCIAL GROUP INC INTERREGIONAL FINANCIAL GROUP INC MINNEAPOLIS JOHN C APPEL 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE DAIN BOSWORTH INC UNIT OF THIS BROKERAGE AND INVESTMENT BANKING CONCERN AS PRESIDENT MR APPEL FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BOTH THE PARENT AND DAIN BOSWORTH SUCCEEDS IRVING WEISER 46 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT AS WELL AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY MR APPEL CONTINUES AS AN EXECUTIVE VICE PRESIDENT OF INTERREGIONAL FINANCIAL 9402040157 940204 WHO'S NEWS PLAYTEX PRODUCTS INC PLAYTEX PRODUCTS INC STAMFORD CONN THIS MANUFACTURER OF PERSONALCARE PRODUCTS ELECTED FOUR DIRECTORS INCREASING BOARD MEMBERSHIP TO NINE JUDITH RODIN 49 YEARS OLD PROVOST OF YALE UNIVERSITY AND PRESIDENT DESIGNATE OF THE UNIVERSITY OF PENNSYLVANIA WALTER A FORBES 51 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CUC INTERNATIONAL JOHN J LEE 57 CHAIRMAN AND CHIEF EXECUTIVE OF HEXCEL CORP AND CRAIG E WEATHERUP 48 PRESIDENT AND CHIEF EXECUTIVE OF PEPSICOLA NORTH AMERICA 9402040156 940204 UNION GROUP SAYS FOOD LION INC STOCKS STALE GOODS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL FOOD LION INC IS AGAIN THE SUBJECT OF ALLEGATIONS OF VIOLATING STATE FOOD AND SAFETY REGULATIONS BY A TRADEUNION GROUP CONSUMERS UNITED WITH EMPLOYEES A COALITION OF TRADE UNION AND RELIGIOUS ORGANIZATIONS SAID IN A REPORT THURSDAY THAT THE SALISBURY NC GROCERY CHAIN STOCKS OUTOFDATE INFANT FORMULA ON ITS SHELVES THE WASHINGTON DC UNION GROUP REVIEWED STATE INSPECTION RECORDS FROM 1989 TO JANUARY 1994 AND SAID 212 FOOD LION STORES IN GEORGIA NORTH CAROLINA TENNESSEE AND VIRGINIA HAD BEEN CITED FOR STOCKING INFANT FORMULA THAT WAS ON AVERAGE A MONTH OUTOFDATE CUE SAID STATE AGENCIES PULLED 3549 CANS OFF STORE SHELVES DURING THAT PERIOD TOM E SMITH FOOD LION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE REPORT WAS PART OF THE UNITED FOOD AND COMMERCIAL WORKERS UNION'S ONGOING CORPORATE CAMPAIGN TO DISCREDIT FOOD LION'S REPUTATION FOOD LION SPOKESMAN MIKE MOZINGO SAID COMPANY POLICY IS TO REMOVE EXPIRED PRODUCTS FROM SHELVES PROMPTLY BUT HE CONCEDES WITH 1100 STORES IN 14 STATES YOU'LL OCCASIONALLY MISS A CAN OR TWO MR SMITH SAID FOOD LION WOULD INVESTIGATE CUE'S ALLEGATIONS IMMEDIATELY AND TAKE WHATEVER STEPS ARE NECESSARY TO CHANGE THE SITUATION A US FOOD AND DRUG ADMINISTRATION SPOKESMAN SAID OUTDATED BABY FORMULA DOESN'T POSE A HEALTH HAZARD BUT THAT THE AGENCY WOULD LOOK INTO THE ALLEGATIONS A SPOKESWOMAN FOR THE VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES SAID INSPECTORS ARE REQUIRED TO REMOVE AND DISCARD CONTAINERS OF OLD FORMULA WHEN THEY ARE FOUND DURING AN INSPECTION BUT SHE SAID THAT WHEN A SUPERMARKET IS GRADED FOR ITS SAFETY RECORD THE STATE CONSIDERS ITS OVERALL PERFORMANCE SHE NOTED THAT IN VIRGINIA FOOD LION'S OVERALL COMPLIANCE RATE WITH STATEINSPECTION REQUIREMENTS IS AMONG THE HIGHEST IN THE STATE SINCE NOVEMBER 1992 FOOD LION A UNIT OF DELHAIZE LE LION SA OF BELGIUM HAS BEEN DOGGED BY ALLEGATIONS THAT ITS STORES AREN'T SANITARY THE CONTROVERSY BEGAN AFTER PRIMETIME LIVE AN ABC NEWSMAGAZINE CLAIMED FOOD LION MISLED SHOPPERS ABOUT THE FRESHNESS OF ITS MEAT AND FISH AT THE TIME FOOD LION DENIED THE ALLEGATIONS AND SAID THE UFCW WAS BEHIND THE REPORT 9402040155 940204 WHO'S NEWS NATIONAL STEEL CORP NATIONAL STEEL CORP MISHAWAKA IND JAMES N HOWELL 52 YEARS OLD RESIGNED EFFECTIVE IMMEDIATELY FROM HIS POST AS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS STEELMAKER THE COMPANY SAID MR HOWELL RESIGNED TO PURSUE OTHER CAREER INTERESTS AND WOULD NOT ELABORATE FURTHER NO SUCCESSOR HAS BEEN NAMED AND THOSE PEOPLE REPORTING TO MR HOWELL WILL TEMPORARILY REPORT TO RONALD H DOERR PRESIDENT AND CHIEF EXECUTIVE OFFICER 9402040154 940204 FINANCING BUSINESS KELLEY OIL CORP KELLEY OIL CORP HOUSTON THE MANAGING GENERAL PARTNER OF KELLEY PARTNERS 1994 DEVELOPMENT DRILLING PROGRAM A TEXAS LIMITED PARTNERSHIP SAID THE REGISTRATION STATEMENT FOR 20864414 UNITS OF LIMITED AND GENERAL PARTNER INTERESTS IN THE PARTNERSHIP WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION KELLEY OIL SAID THE UNITS BEING OFFERED AT 3 EACH WILL ONLY BE OFFERED TO DEPOSITARY UNITHOLDERS OF KELLEY OIL & GAS PARTNERS LTD AS OF DEC 31 THE OFFERING AMOUNT OF 62593242 WILL BE COMBINED WITH THE GENERAL PARTNERS' CONTRIBUTIONS OF 2580896 FOR A TOTAL OF 65174138 THE OFFERING TO RECORD UNITHOLDERS WILL END FEB 28 AT WHICH TIME KELLEY OIL CORP WILL SUBSCRIBE FOR ALL UNITS NOT SUBSCRIBED BY OTHER UNITHOLDERS TUCKER ANTHONY INC HAS BEEN NAMED AS SELECTED AGENT ALONG WITH VARIOUS OTHER SELLING AGENTS FOR THE OFFERING KELLEY OIL SAID THE PARTNERSHIP WAS FORMED TO CONDUCT DEVELOPMENT DRILLING ACTIVITIES ON PROPERTIES OF KELLEY PARTNERS SITUATED PRIMARILY IN LOUISIANA 9402040153 940204 CREDIT MARKETS BOND PRICES FALL AS SPECULATION OF RATE INCREASE BY FED SENDS A SHUDDER THROUGH MAJOR MARKETS BY THOMAS T VOGEL JR AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SPECULATION OVER WHEN THE FEDERAL RESERVE IS GOING TO TIGHTEN MONETARY POLICY BY RAISING SHORTTERM INTEREST RATES SENT A SHUDDER THROUGH ALL THE MAJOR BOND MARKETS MOST AFFECTED BY THE SKITTISHNESS WERE SHORTTERM US INTEREST RATES WHICH SOARED THE BONDEQUIVALENT YIELD OF THE THREEMONTH TREASURY BILL FOR EXAMPLE ROSE 007 PERCENTAGE POINT TO 319 THE HIGHEST SINCE THE END OF NOVEMBER THE YIELD OF OTHER SHORTTERM TREASURY SECURITIES ALSO ROSE SHARPLY MEANWHILE THE YIELD OF THE BENCHMARK 30YEAR BOND ROSE TO 631 FROM 628 ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD DROPPED MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 99 4/32 WITH MANY RECENT REPORTS SUGGESTING THAT THE US ECONOMY IS GAINING STRENGTH TALK OF WHEN THE FED WOULD RAISE INTEREST RATES HAS BEEN A POPULAR SPORT IN RECENT WEEKS THAT'S BECAUSE IT IS WIDELY BELIEVED THE FED WILL WANT TO MAKE A PREEMPTIVE STRIKE AGAINST INFLATIONARY PRESSURES CREATED BY A GROWING ECONOMY BY RAISING SHORTTERM INTEREST RATES BEFORE RISING PRICES BECOME A PROBLEM THIS WEEK SUCH SPECULATION HAS GAINED MORE ATTENTION ON MONDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SPOKE BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS AND SAID THE FEDERAL RESERVE BOARD WOULD BOOST SHORTTERM RATES AT SOME TIME THOUGH HE DIDN'T SAY WHEN YESTERDAY'S JUMP IN YIELDS WAS SPARKED BY THE FED'S FAILURE TO INTERVENE IN THE MARKETS AS WAS EXPECTED EARLY YESTERDAY THE FEDERAL FUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY WAS TRADING AT 1/8 PERCENTAGE POINT ABOVE ITS 3 TARGET ANALYSTS HAD EXPECTED THE FED WOULD CORRECT THIS BY MAKING A ROUTINE TECHNICAL ADDITION OF RESERVES TO THE BANKING SYSTEM THE FED CONTROLS SHORTTERM RATES BY MANAGING THE LEVEL OF RESERVES IN THE SYSTEM WHEN THE FED'S NEW YORK OPENMARKET DESK FAILED TO ADD RESERVES DURING ITS USUAL INTERVENTION PERIOD TRADERS SURMISED THE DESK WAS WILLING TO LET THE FED FUNDS RATE TRADE ABOVE ITS TARGET MANY ECONOMISTS BELIEVE THE FED'S NEXT MOVE WILL BE TO TIGHTEN POLICY BY RAISING THE TARGET TO 325 BUT THERE IS LITTLE CONSENSUS ON WHEN THAT WILL OCCUR ECONOMISTS WERE GENERALLY LESS WILLING TO SEE A FED TIGHTENING IN THE INACTION THAN TRADERS BY FAILING TO ADD RESERVES THE FED WAS TIPPING ITS HAND THAT IT PLANS TO TIGHTEN MONETARY POLICY SAID DAVID JONES ECONOMIST AT AUBREY LANSTON MR JONES WAS ONE OF FEW ECONOMISTS WHO SAID THE INACTION WAS A CLEAR SIGN THOUGH SOME DID SAY THE MOVE WAS SUSPICIOUS THEY TIPPED THEIR HAND TODAY WITH AN UNMISTAKABLE SIGNAL THAT THEY WERE IN THE PROCESS OF MOVING TO A TIGHTER POLICY STANCE THAT WILL OFFICIALLY BE SIGNALED TOMORROW MR JONES SAID OTHER ECONOMISTS SAID IT WOULD MAKE NO SENSE FOR THE FEDERAL RESERVE TO ACT ON THE FIRST DAY OF ITS TWODAY FEDERAL OPEN MARKET COMMITTEE POLICYMAKING MEETING WHICH STARTED YESTERDAY AND BEFORE JANUARY EMPLOYMENT DATA WHICH WILL BE REPORTED TODAY I DON'T THINK TODAY'S LACK OF ACTION INDICATES ANYTHING SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES IN HIS VIEW IF THE FEDERAL RESERVE WAS GOING TO TIGHTEN IT WOULD HAVE GIVEN THE MARKET A CLEAR SIGNAL PERHAPS BY DRAINING RESERVES FROM THE SYSTEM ON THE FIRST DAY OF THE FED'S FEDERAL OPEN MARKET COMMITTEE MEETING THE MEMBERS TYPICALLY DISCUSS LONGTERM MONETARY TARGETS AND LONGERTERM ECONOMIC TARGETS SAID MR JONES ON THE SECOND DAY THE MEMBERS USUALLY SET THE FED'S STANCE TOWARD MONETARY POLICY HE EXPLAINED ACCORDING TO LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES A FIRM THAT PROVIDES ANALYSIS OF TREASURY ACTIVITIES THE FED'S DECISION NOT TO ADD RESERVES WHEN THE FED FUNDS RATE WAS 1/8 PERCENTAGE POINT ABOVE ITS TARGET WAS UNUSUAL HE SAID THAT IT WAS COMMON FOR THE FED TO IGNORE A 1/16 PERCENTAGE POINT GAP BUT NOT A 1/8 POINT GAP THE FED LAST RAISED SHORTTERM INTEREST RATES NEARLY FIVE YEARS AGO SINCE THEN THE FED HAS BEEN CUTTING INTEREST RATES IT'S BEEN OVER A YEAR SINCE THE LAST CUT WHICH OCCURRED IN DECEMBER 1992 ACCORDING TO MR CRANDALL THE FED DIDN'T HAVE TO ADD MUCH IN RESERVES PERHAPS HE SUGGESTED THE FED WAS SAVING ITS SHOTS FOR WHEN IT NEEDS THEM IN OTHER WORDS THERE WAS THE RISK THAT THE FED COULD HAVE OVERDONE IT AND BEEN FACED WITH THE NEED TO REDUCE RESERVES TO MAKE UP FOR IT HE SAID THAT WOULD HAVE BEEN EVEN MORE MISLEADING SAID MR CRANDALL AND COULD HAVE HAD A DISRUPTIVE EFFECT ON THE MARKET FOR HIS PART MR CRANDALL SAID HE WAS SURPRISED BY HOW THE MARKET REACTED TO THE FED'S DECISION AGAINST ADDING RESERVES THE NEED TO ADD SOME RESERVES WASN'T SUCH AN OBVIOUS THING THAT THEY HAD TO COME IN AND DO IT TODAY HE SAID MR FINE SAID THAT WHEN THE FED MOVES TO TIGHTEN IT WILL MAKE ITS INTENTIONS MUCH MORE OBVIOUS THIS FED UNDER ALAN GREENSPAN HAS USUALLY BEEN RATHER DEFINITIVE IN NATURE HE SAID IF THEY WANT TO TIGHTEN THEY WILL COME IN AND HIT YOU OVER THE HEAD MR FINE SAID THAT WHEN THE FED DOES TIGHTEN IT WILL MOVE THE FEDERAL FUNDS RATE UP 1/2 PERCENTAGE POINT NOT JUST 1/4 PERCENTAGE POINT TO MAKE IT VERY CLEAR TO THE BOND MARKETS THAT A SHIFT HAS OCCURRED SOME ECONOMISTS SPECULATED THAT BY REFRAINING FROM ACTION THIS SESSION THE FED HAS A CLEARER HAND TO STATE POLICY ONE WAY OR THE OTHER TODAY AFTER THE JANUARY EMPLOYMENT REPORT IS RELEASED THE FED FUNDS RATE WAS AT 30625 LATE YESTERDAY IN THE FLURRY OF THURSDAY'S ACTIVITY SOME ECONOMISTS AND TRADERS WERE REMINDING PARTICIPANTS OF WHAT SOME REFERRED TO AS THE THANKSGIVING DAY MASSACRE OR A DAY DURING THANKSGIVING WEEK 1989 WHEN TRADERS MISINTERPRETED A FED DECISION TO ADD RESERVES AS A SIGN THAT IT WAS CUTTING THE FED FUNDS RATE IN WHENISSUED TRADING THE THREEYEAR NOTE TO BE SOLD BY THE GOVERNMENT NEXT WEEK WAS YIELDING 465 THE 10YEAR NOTE WAS YIELDING 576 AND THE 30YEAR BOND WAS YIELDING 632 LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2 A MEASURE OF MONEY SUPPLY DROPPED 1 BILLION FOR THE WEEK ENDED JAN 24 THAT PUTS THE M2 GROWTH RATE AT 24 COMPARED WITH THE FOURTHQUARTER BASE OF 1993 WHICH IS WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 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 THE BILLS ARE DATED FEB 10 AND MATURE FEB 9 1995 CORPORATEBOND MARKET FOCUSED ON DOMESTIC ISSUES FOR THE FIRST TIME THIS WEEK AMID NEW ISSUES FROM APPLE COMPUTER INC CONNECTICUT LIGHT & POWER CO HERTZ CORP AND SUNTRUST BANKS INC IN TRADING MEANWHILE JUNK BONDS WERE ENDING UNCHANGED HOWEVER THE SECTOR SAW ACTIVE DEALINGS AND PRICES HAD BEEN UP 1/4 TO 1/2 POINT EARLIER IN THE DAY IN CONTRAST ACTIVITY WAS LIGHT IN THE INVESTMENTGRADE AREA AS PRICES EASED AND SPREADS OR THE MARGIN BETWEEN YIELDS OF CORPORATE AND TREASURY BONDS NARROWED SLIGHTLY WEDNESDAY'S GLOBALNOTE OFFERING BY THE PEOPLE'S REPUBLIC OF CHINA TRADED DOWN IN THE SECONDARY MARKET CHINA'S 65 COUPON NOTES MATURING IN 2004 DROPPED 0525 POINT OR 525 FOR A BOND WITH A 1000 FACE VALUE TO 98891 THE YIELD ROSE TO 6653 FROM 6582 GLOBAL NOTES ARE SECURITIES DESIGNED TO BE EASILY BOUGHT AND SOLD IN THE WORLD'S MAJOR MARKETS PROCEEDS FROM THE GLOBAL NOTES WILL BE USED TO FUND PROJECT FINANCE IN AREAS SUCH AS ENERGY TRANSPORTATION AND COMMUNICATION JIN RENQING CHINA'S VICE MINISTER OF FINANCE SAID THE OFFICIAL SPOKE AT A NEWS CONFERENCE IN NEW YORK AT MERRILL LYNCH WHICH WAS LEAD UNDERWRITER FOR THE DEBT OFFERING ALSO IN THE NEWS CONFERENCE WINTHROP SMITH JR EXECUTIVE VICE PRESIDENT OF MERRILL LYNCH AND CHAIRMAN OF MERRILL LYNCH INTERNATIONAL SAID THE GLOBAL OFFERING ATTRACTED MORE THAN 100 WORLDWIDE INSTITUTIONS IN ADDITION TO INDIVIDUAL INVESTORS OF MERRILL'S SALES MR SMITH SAID 60 OF THE BONDS WAS SOLD IN THE US 20 IN EUROPE AND 20 IN ASIA IN THE US APPLE COMPUTER SOLD 300 MILLION OF 10YEAR 65 COUPON NOTES PRICED AT 99925 TO YIELD 651 RATED BAA1 BY MOODY'S INVESTORS SERVICE AND SINGLEAMINUS BY STANDARD & POOR'S THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS MUNICIPAL BONDS WERE CAUGHT UP IN THE SALES THAT UNDERCUT TREASURYS AND THEY WERE GENERALLY 1/8 TO 1/2 POINT LOWER AT THE CLOSE IN THE NEWOFFERING SECTOR MUNI ISSUERS SOLD MORE THAN 900 MILLION OF DEBT DESPITE THE PRICE DECLINE THAT DROVE UP YIELDS THIS SESSION'S ISSUES INCLUDED THE MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO'S 332 MILLION 1994 SERIES A AND B POWER SUPPLY SYSTEM BONDS THEY WERE PRICED BY A BEAR STEARNS GROUP AND GIVEN YIELDS THAT RANGE FROM 24 IN JULY 1994 TO 528 IN 2017 THERE WASN'T A REPRICING DESPITE THE MARKET'S CONDITION THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S NEWLY FREED TO TRADE 500 BONDS DUE 2024 WERE QUOTED AT 95 3/8 IN LATE TRADING YIELDING 53 WHEN THOSE BONDS INITIALLY CAME TO THE MARKET TUESDAY THEY WERE PRICED AT 95 3/4 AND HAD A 528 YIELD MUNIS FELL WITH TREASURYS THIS SESSION AMID CONCERNS ABOUT FED TIGHTENING MORTGAGESECURITIES PRICES ENDED DOWN AS MUCH AS 9/32 BUT THEY OUTPERFORMED TREASURYS PROMPTING SOME DOUBT ABOUT THE EXTENT OF DEALER DEMAND FOR COLLATERAL TO CREATE REMICS THE REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL FLOW HASN'T YET BEEN CHOKED OFF HOWEVER AS ONE SIZABLE NEW ISSUE AND INCREASES OF TWO OFFERINGS OUTSTANDING WERE ANNOUNCED FOR A TOTAL OF 27 BILLION NEW SECURITIES BUT THE LONGER MORTGAGE SECURITIES OUTPACE TREASURYS THE MORE EXPENSIVE MORTGAGE SECURITIES LOOK RELATIVE TO THEIR GOVERNMENTSECURITIES COUNTERPARTS AND WITH THE TREASURY ABOUT TO SELL ITS QUARTERLY REFUNDING PACKAGE NEXT WEEK FOR A TOTAL OF 40 BILLION NEW SECURITIES CHANCES ARE THAT THE MORTGAGE MARKET COULD REMAIN RELATIVELY BUOYANT PRIMARY REMIC MARKET ACTIVITY WEDNESDAY WAS HIGHLIGHTED BY A 1549 BILLION FEDERAL HOME LOAN MORTGAGE CORP SERIES GOLD 1695 DEAL WHICH WAS COLLATERALIZED WITH THE AGENCY'S GOLD 30YEAR 7S AND UNDERWRITTEN BY KIDDER PEABODY FREDDIE MAC'S SERIES GOLD 1686 BACKED BY GOLD 30YEAR 75S WAS BOOSTED TO 13 BILLION FROM THE ORIGINAL 300 MILLION AMOUNT BY LEHMAN BROTHERS AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S SERIES 199422 BACKED BY 75BACKED STRIPS TRUST 254 WAS INCREASED TO 335 MILLION FROM 200 MILLION BY GREENWICH CAPITAL MARKETS THERE WAS LITTLE NET MARKET MOVEMENT AFTER NEWS OF A 59000 JOBLESSCLAIMS RISE A 12 DECEMBER FACTORYORDERS GAIN OR THE FLAT MORTGAGE BANKERS ASSOCIATION'S WEEKLY REFINANCING INDEX 9402040152 940204 INTERNATIONAL GERMAN M3 GROWTH COULD DELAY CUT IN INTEREST RATES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE BUNDESBANK CHILLED HOPES FOR LOWER GERMAN INTEREST RATES AT LEAST TEMPORARILY BY ANNOUNCING AN UNEXPECTEDLY SHARP JUMP IN DECEMBER MONEY SUPPLY WHICH IT TRACED TO SPECIAL FACTORS THE BUNDESBANK SAID ITS MEASURE OF BROADLY BASED M3 MONEY SUPPLY ROSE AT AN ANNUALIZED AND SEASONALLY ADJUSTED 81 RATE IN DECEMBER UP FROM A PACE OF 72 IN NOVEMBER AND MOVING FURTHER AWAY FROM ITS 1993 TARGET CORRIDOR OF 45 TO 65 FOR THE FOURTH QUARTER AVERAGE M3 GROWTH WAS UP 75 FROM THE YEAREARLIER PERIOD ANALYSTS SUGGESTED THAT THE LATEST SURGE IN MONEY SUPPLY WHICH IS AN EARLY INDICATOR FOR FUTURE INFLATION TRENDS COULD OFFSET THE CHANCE FOR LOWER INTEREST RATES CREATED BY A DECELERATION IN WESTERN GERMAN INFLATION IN JANUARY TO 34 FROM 37 IN DECEMBER THE GERMAN CENTRAL BANK LAST LOWERED OFFICIAL INTEREST RATES IN OCTOBER THE US RECENTLY INCREASED PRESSURE ON THE BUNDESBANK TO RESUME ITS GRADUAL REDUCTION IN INTEREST RATES TO HELP PULL EUROPE'S LARGEST ECONOMY OUT OF RECESSION BUNDESBANK PRESIDENT HANS TIETMEYER HAS CLAIMED THAT THE BUNDESBANK IS WILLING TO RESUME LOOSENING CREDIT REINS AGAIN GIVEN MORE SIGNS OF EASING PRICE PRESSURES IN GERMANY'S ECONOMY PRIVATESECTOR ECONOMISTS BELIEVE THAT SUCH INDICATIONS COULD COME BEFORE THE NEXT BUNDESBANK POLICY MEETING SCHEDULED FOR FEB 17 BY WHICH TIME THE BUNDESBANK COULD HAVE A VIEW OF HOW M3 PERFORMED IN JANUARY BUT GERMAN OFFICIALS SAY THEY NEED CLEAR EVIDENCE THAT INFLATION IS UNDER CONTROL POINTING TO SPECIAL FACTORS THAT INFLATED MONEYSUPPLY GROWTH IN DECEMBER SOME ECONOMISTS EXPECT THAT M3 GROWTH IN JANUARY COULD COME IN MUCH LOWER EVEN BELOW THE NEW 1994 TARGET RANGE OF 4 TO 6 BUT OTHER OBSERVERS RECALL THAT A JANUARY M3 GROWTH FIGURE IS RARELY TAKEN AS A GOOD INDICATION BECAUSE THE ANNUALIZED RESULT IS CALCULATED ON THE BASIS OF ONLY ONE MONTH THE DECEMBER MONEY SUPPLY WAS PUSHED UP BY GERMAN COMPANIES THAT REPATRIATED AN ESTIMATED 15 BILLION MARKS 866 BILLION IN LIQUID ASSETS HELD ABROAD FOR THE PURPOSE OF WINDOW DRESSING YEAREND ACCOUNTS IN ADDITION BANK LENDING TO COMPANIES AND PRIVATE INDIVIDUALS ROSE 46 TO 584 BILLION MARKS FROM 40 BILLION MARKS IN DECEMBER 1992 AS MANY PEOPLE TOOK ADVANTAGE OF A 1993 TAX BREAK ON HOME PURCHASES ALSO DRIVING UP MONEY AGGREGATES WERE TAX CHANGES AFFECTING FOREIGN INVESTMENT FUNDS WHICH CAUSED HEAVY SALES OF SUCH HOLDINGS UP TO THE END OF DECEMBER 9402040151 940204 LAZARD TAKES LEAD IN EUROPEAN DEALS TRADE MAGAZINE SAYS LONDON THE LAZARD INVESTMENT BANKING GROUP LED EUROPEAN CROSSBORDER MERGERS AND ACQUISITIONS DEALS IN 1993 AHEAD OF DEUTSCHE BANK AG'S MORGAN GRENFELL UNIT AND GOLDMAN SACHS & CO IN SECOND AND THIRD PLACE RESPECTIVELY WITH 22 TRANSACTIONS TOTALING 48 BILLION 72 BILLION THE COMBINATION FORMED BY THE THREE LAZARD HOUSES IN LONDON PARIS AND NEW YORK MOVED UP FROM THIRD PLACE IN 1992 ACCORDING TO ACQUISITIONS MONTHLY A TRADE PUBLICATION AMONG THE MAJOR DEALS LAZARD FRERES ET CIE OF PARIS ADVISED UNION DES ASSURANCES DE PARIS ON ITS 18 BILLION TWOSTEP BID FOR 736 OF VINCI A DUTCH INSURANCE AND FINANCIALSERVICES GROUP THROUGH THIS DEAL UAP TOOK CONTROL OF COLONIA KONZERN AG A GERMAN INSURANCE COMPANY IN A CROSSSHAREHOLDER ARRANGEMENT WITH SUEZ ET CIE OF FRANCE IN BRITAIN MEANWHILE LAZARD BROS & CO ADVISED UK RETAILER KINGFISHER PLC ON ITS 1 BILLION ACQUISITION OF FINANCIERE DARTY SA OF FRANCE MORGAN GRENFELL CAME SECOND IN THE MAGAZINE'S RATING WITH 44 COMPLETED TRANSACTIONS THE HIGHEST NUMBER OF DEALS ACHIEVED BY ANY ADVISER IN THE TABLE TOTALING 356 BILLION GOLDMAN SACHS RANKED THIRD WITH 32 CROSSBORDER DEALS TOTALING 355 BILLION SG WARBURG GROUP PLC WHICH LED THE MAGAZINE'S 1992 RANKING FOR CROSSBORDER DEALS FIGURED SIXTH IN 1993 WITH 21 DEALS VALUED AT 22 BILLION ACCORDING TO ANOTHER RECENT RANKING PUBLISHED BY MERGERS & ACQUISITIONS INTERNATIONAL HOWEVER WARBURG WAS TOP ADVISER FOR THE SECOND YEAR RUNNING IN ALL EUROPEAN DEALS INCLUDING DOMESTIC DEALS 9402040150 940204 WHO'S NEWS NEW YORK STOCK EXCHANGE INC NEW YORK STOCK EXCHANGE INC NEW YORK ROBERT G BRITZ 43 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT NEW LISTINGS AND CORPORATE LIAISON A NEW POSITION MR BRITZ WAS FORMERLY A VICE PRESIDENT OF THE DIVISION ALSO FIVE MANAGING DIRECTORS WERE NAMED VICE PRESIDENTS ROBERT A MARCHMAN 36 ENFORCEMENT BRIAN MCNAMARA 49 MARKET SURVEILLANCE REGULATORY DEVELOPMENT RICHARD A PECHEUR 49 MEMBER FIRM AND INSTITUTIONAL MARKETING AND SALES L PAIGE THOMPSON 46 DOMESTIC LISTINGS AND THOMAS E VEIT 42 LISTED COMPANY MARKETING ALL VICE PRESIDENTIAL POSITIONS ARE NEW 9402040149 940204 ABREAST OF THE MARKET STOCKS PARTIALLY RECOVER LOSSES BROUGHT ON BY EARLY SKITTISHNESS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK CONCERNS ABOUT RISING INTEREST RATES NUDGED STOCK PRICES LOWER BUT THE MARKET FINISHED ABOVE ITS WORST LEVELS OF THE DAY AFTER THE MARKET'S SHARP GAINS IN THE PAST SEVERAL WEEKS ANALYSTS SAID INVESTORS ARE BECOMING MORE CAUTIOUS MODERATE LOSSES IN BOND PRICES TRIGGERED PROFIT TAKING YESTERDAY THEY SAID THE TREASURY'S 30YEAR BOND WAS DOWN MORE THAN 3/8 POINT YESTERDAY TO YIELD 631 EARLIER IT WAS OFF MORE THAN 1/2 POINT THE DOW JONES INDUSTRIAL AVERAGE WHICH RALLIED TO WITHIN THREE POINTS OF A RECORD WEDNESDAY FELL 788 OR 020 TO 396766 BROADBASED INDEXES FELL ABOUT THE SAME THE INDUSTRIAL AVERAGE HAD SKIDDED TO A LOSS OF MORE THAN 25 POINTS EARLIER IN THE DAY BIG BOARD VOLUME TOPPED THE ACTIVE 300 MILLIONSHARELEVEL FOR THE EIGHTH STRAIGHT SESSION AT 318000000 SHARES COMPARED WITH 328770000 WEDNESDAY DECLINING ISSUES LED ADVANCERS 1190 TO 918 THE AVERAGE PRICE PER SHARE FELL SEVEN CENTS THE STANDARD & POOR'S 500 STOCK INDEX LOST 129 OR 027 TO 48071 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 053 OR 020 TO 26718 AND THE DOW JONES EQUITY MARKET INDEX SLIPPED 111 OR 024 TO 45516 ALL SET RECORDS WEDNESDAY THE NASDAQ COMPOSITE INDEX DROPPED 178 OR 022 TO 79779 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 071 OR 015 TO 48718 ENDING A STREAK OF THREE STRAIGHT RECORD HIGHS THE DOW JONES UTILITIES AVERAGE FELL TWICE AS FAR AS THE DOW INDUSTRIALS SLIDING 092 OR 041 TO 22423 THE FOCUS ON INTEREST RATES LEFT FINANCIAL STOCKS LOWER CITICORP DROPPED 1 TO 42 1/2 CHASE MANHATTAN FELL 3/4 TO 35 1/4 AMERICAN INTERNATIONAL AN INSURER SKIDDED 1 3/8 TO 89 1/2 EQUITABLE COS FELL 1 1/2 TO 28 AND PAINEWEBBER EASED 5/8 TO 27 7/8 SHARES OF THE BIG THREE AUTO MAKERS ADVANCED AFTER THE RELEASE OF SURPRISINGLY STRONG SALES FIGURES US AUTO SALES REACHED A 72 MILLIONUNIT ANNUAL RATE IN JANUARY TOPPING THE 67 MILLION RATE ANALYSTS HAD EXPECTED GENERAL MOTORS GAINED 1 1/2 TO 63 FORD MOTOR ROSE 1 5/8 TO 69 3/8 AND CHRYSLER ADDED 1 1/4 TO 62 1/2 RJR NABISCO CLIMBED 1/4 TO 7 7/8 IN HEAVY TRADING AMID RUMORS THAT THE COMPANY PLANNED TO SPIN OFF ITS TOBACCO UNIT RJR RESPONDING TO INQUIRIES FROM THE NEW YORK STOCK EXCHANGE SAID THAT IT KNOWS OF NO REASON FOR THE UNUSUAL ACTIVITY IN ITS STOCK YESTERDAY RJR DECLINED TO COMMENT ON THE MARKET RUMORS THIS SPRING MARKS THE FIFTH ANNIVERSARY OF THE KOHLBERG KRAVIS ROBERTS & COLED LEVERAGED BUYOUT OF RJR MAKING KKR ELIGIBLE FOR A TAXFREE SPINOFF ALSO IN MAY RJR IS EXPECTED TO RETIRE MORE THAN 2 BILLION IN HIGHCOUPON DEBT THAT CONTAINS RESTRICTIVE COVENANTS THAT MAKE A SEPARATION OF THE COMPANY DIFFICULT MAYTAG SLUMPED 2 1/8 TO 17 1/4 AFTER THE NEWTON IOWA HOMEAPPLIANCE MAKER REPORTED LOWERTHANEXPECTED FOURTHQUARTER EARNINGS IT HAD A PROFIT OF 16 CENTS A SHARE IN THE PERIOD UP FROM 11 CENTS A YEAR EARLIER BUT BELOW THE 23CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WHIRLPOOL JUMPED 1 1/4 TO 72 3/8 EXCLUDING CHARGES THE BENTON HARBOR MICH APPLIANCE MAKER'S NET INCOME CLIMBED TO 113 A SHARE IN THE FOURTH QUARTER FROM 102 A YEAR EARLIER MANY RETAILING STOCKS ROSE AFTER RELEASE OF JANUARY SALES DATA DAYTON HUDSON WHOSE SAMESTORE SALES THOSE FROM LOCATIONS OPEN AT LEAST A YEAR ROSE 29 ADDING 7/8 TO 67 3/8 GAP WHOSE SAMESTORE SALES CLIMBED 3 ADVANCED 3/8 TO 41 5/8 AND SEARS ROEBUCK WHOSE SAMESTORE SALES JUMPED 79 WAS UP 1/4 TO 51 1/2 WOOLWORTH HOWEVER SKIDDED 1 1/4 TO 24 5/8 THE NEW YORK RETAILER ESTIMATED THAT ITS FOURTHQUARTER EARNINGS WERE WELL BELOW THEIR YEAREARLIER LEVEL ITS DOMESTIC SAMESTORE SALES ROSE 22 IN JANUARY TOTAL SALES FOR THE MONTH WERE OFF 72 CHIRON NASDAQ DECLINED 2 1/2 TO 90 1/4 AFTER GOLDMAN SACHS & CO ANALYST MAYKIN HO DOWNGRADED THE STOCK TO MODERATE OUTPERFORMER FROM RECOMMENDED FOR PURCHASE SHE CITED THE STOCK'S RECENT STRENGTH IT SET A 52WEEK HIGH MONDAY AS WELL AS CONCERNS ABOUT REIMBURSEMENT FOR THE EMERYVILLE CALIF COMPANY'S RECENTLY APPROVED MULTIPLE SCLEROSIS DRUG INTEL FELL 2 TO 63 1/4 THE SANTA CLARA CALIF MICROCHIP COMPANY AGREED TO DISMISS SOME PATENT INFRINGEMENT CLAIMS AGAINST CYRIX TO PARTIALLY SETTLE LITIGATION BETWEEN THE COMPANIES SHARES OF CYRIX RICHARDSON TEXAS JUMPED 3 1/8 TO 26 1/8 BOTH STOCKS TRADE ON NASDAQ TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS JUMPED 1 1/4 TO 75 1/4 ON SPECULATION THAT THE MEXICAN TELEPHONE COMPANY WILL REPORT STRONG FOURTHQUARTER RESULTS US SURGICAL TUMBLED 2 7/8 TO 28 1/4 IN PART ON A CABLETELEVISION REPORT THAT SAID MARKET SOURCES PREDICT SHARES OF THE NORWALK CONN MEDICALPRODUCTS COMPANY WILL SAG TO THE LOW 20S LANCASTER COLONY NASDAQ DROPPED 2 TO 43 1/4 EVEN THOUGH THE COLUMBUS OHIO AUTOMOTIVE AND FOODPRODUCTS MANUFACTURER REPORTED EARNINGS OF 68 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED DEC 31 UP FROM 53 CENTS A YEAR EARLIER FLUSH WITH CASH INSTITUTIONAL INVESTORS LIKELY TOOK ADVANTAGE OF THE DAY'S WEAKNESS TO BUY STOCKS LATE IN THE DAY SAID DAVID SHULMAN A MARKET STRATEGIST AT SALOMON BROTHERS PART OF THE CONCERN ABOUT RISING INTEREST RATES WAS LINKED TO THE SCHEDULED RELEASE TODAY OF LABOR DEPARTMENT DATA ON JANUARY EMPLOYMENT LEVELS SOME WORRY THE FEDERAL RESERVE WILL MOVE TO TIGHTEN CREDIT CONDITIONS IF THE REPORT SHOWS STRENGTH ECONOMISTS EXPECT AN INCREASE OF ABOUT 186000 IN NONFARM PAYROLLS JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ & CO HOWEVER SAID A WEAKERTHANEXPECTED REPORT ON INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE YESTERDAY MIGHT MEAN TODAY'S DATA WILL COME IN AT THE LOW END OF EXPECTATIONS 9402040148 940204 FINANCING BUSINESS DEER PARK REFINING LP DEER PARK REFINING LP HOUSTON A JOINT VENTURE OF ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO AND A PETROLEOS MEXICANOS SA UNIT SOLD 400 MILLION IN NOTES IN A PRIVATE PLACEMENT TO INSTITUTIONAL BUYERS THE NOTES PRICED AT 077 POINT OVER THE 10YEAR US TREASURY NOTE CARRY A 647 COUPON RATE AND HAVE A 10YEAR WEIGHTED AVERAGE LIFE WITH A 15YEAR FINAL MATURITY THE TRANSACTION CLOSED MONDAY PROCEEDS WILL BE USED TO PARTLY PAY FOR A 1 BILLION UPGRADE AT A REFINERY JOINTLY OWNED BY PEMEX AND SHELL AT SHELL'S DEER PARK TEXAS MANUFACTURING COMPLEX THE PROJECT IS EXPECTED TO BE COMPLETED IN 1995 9402040147 940204 CANADIAN GOVERNMENT SLOWS PACE OF GOLD SALES OTTAWA THE CANADIAN GOVERNMENT SLOWED THE PACE OF ITS MONTHLY GOLD SALES IN JANUARY EASING PRESSURE ON GOLD PRICES THE FINANCE DEPARTMENT SAID YESTERDAY THAT THE GOVERNMENT SOLD 117000 OUNCES OF GOLD FROM ITS OFFICIAL MONETARY RESERVES LAST MONTH DOWN FROM A 1993 MONTHLY AVERAGE OF 324000 OUNCES CANADA IS THE ONLY COUNTRY THAT REGULARLY SELLS GOLD FROM ITS RESERVES GOLD ANALYSTS SAY OTHER COUNTRIES INCLUDING BELGIUM AND THE NETHERLANDS HAVE MADE SUBSTANTIAL GOLD SALES BUT NOT ON A REGULAR AND SUSTAINED BASIS LIKE CANADA THE CANADIAN GOVERNMENT RECEIVED AN AVERAGE OF 38718 AN OUNCE FOR THE GOLD IT SOLD IN JANUARY ON THE NEW YORK COMMODITY EXCHANGE GOLD WAS QUOTED LATE YESTERDAY FOR FEBRUARY DELIVERY AT 38730 AN OUNCE THE JANUARY SALE REDUCED CANADA'S GOLD HOLDING TO 59 MILLION OUNCES OR ABOUT A QUARTER OF THE GOLD STOCK IT HELD WHEN IT STARTED THE REGULAR SALES 14 YEARS AGO THE US HOLDS 2618 MILLION OUNCES GOLD PRODUCERS HAVE STRONGLY CRITICIZED THE CANADIAN SALES BUT CANADIAN OFFICIALS SAID CANADA'S GOLD SALES HAVE BEEN HIGHLY PROFITABLE AND HAVE INCREASED THE LIQUIDITY OF THE COUNTRY'S RESERVES 9402040146 940204 INTERNATIONAL AS MIDEAST PEACE PACT REMAINS ON HOLD PLO OFFICES PROLIFERATE IN WEST BANK BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERICHO OCCUPIED WEST BANK AFTER SIGNING THE ISRAELPALESTINE LIBERATION ORGANIZATION PEACE PACT THE PLO SET UP AN OFFICIAL OFFICE TO PLAN FOR PALESTINIAN SELFRULE IN THIS WEST BANK CITY THE ACCORD HAS YET TO BE IMPLEMENTED BUT THE PLO IS NOW DIVIDED INTO FOUR SEPARATE OFFICES EACH OFFICE SPORTS TWO PALESTINIAN FLAGS FLYING FROM THE WINDOW LIBERAL AMOUNTS OF GRAFFITI PROCLAIMING IN BOLD COLORS PLO OFFICE AND WALL DECORATIONS CONSISTING PRIMARILY OF PICTURES OF PLO CHAIRMAN YASSER ARAFAT DESPITE THE PHYSICAL SIMILARITIES EACH OFFICE MAINTAINS SEPARATE LEADERSHIP ACTIVISTS AND FINANCES EACH SPENDS MOST ITS TIME HELPING RESIDENTS RESOLVE SOCIAL PROBLEMS RANGING FROM TRAFFIC ACCIDENTS TO FAMILY DISPUTES MANY DISAPPOINTMENTS HAVE FOLLOWED THE SEPT 13 SIGNING OF THE PEACE PACT THE ISRAELI PULLOUT FROM JERICHO AND THE GAZA STRIP WAS EXPECTED TO BEGIN DEC 13 AND IS STILL ON HOLD ISRAELI PRIME MINISTER SAYS THE TWO SIDES REMAIN WEEKS AWAY FROM AN AGREEMENT ON IMPLEMENTING THEIR ACCORD THE ISRAELI PRESS REPORTED THAT A SECRET POLL COMMISSIONED BY THE PRIME MINISTER'S OFFICE REVEALED THAT ISRAELI PUBLIC SUPPORT FOR THE ACCORD HAS DIPPED TO 34 LESS THAN HALF OF WHAT IT WAS AT THE SIGNING MR ARAFAT'S EL FATAH FACTION ALSO HAS BEEN ROCKED BY GROWING PUBLIC DISILLUSIONMENT WITH THE PEACE PACT IN ELECTIONS HELD LAST WEEKEND EL FATAH AND ITS ALLIES LOST THEIR MAJORITIES IN TWO PROFESSIONAL ASSOCIATIONS IN THE WEST BANK AND GAZA YET SOME PALESTINIAN ACTIVISTS SAY THE MOST DISTURBING RESULT OF THE LONG WAIT FOR THE START OF PALESTINIAN AUTONOMY HAS BEEN THE PROLIFERATION OF PLO OFFICES THE PHENOMENON HAS REACHED SUCH LEVELS THAT LIKE RIVAL HAMBURGER CHAINS WHEN ONE PLO OFFICE OPENS ITS DOORS TWO MORE SERVING MUCH THE SAME FARE ARE SURE TO FOLLOW NABLUS AND BETHLEHEM ALREADY BOAST THREE PLO OFFICES EACH ONE WEST BANK VILLAGE HAS ONLY 5000 RESIDENTS AND FOUR PLO OFFICES IN MANY CASES THE ACTIVISTS END UP FIGHTING NOT JUST AGAINST THE ISRAELI OCCUPATION BUT AMONG THEMSELVES THIS IS A VERY WEIRD PERIOD WAITING FOR ARAFAT TO ARRIVE WAS SUPPOSED TO LAST TWO MONTHS AND INSTEAD HAS ALREADY STRETCHED TO FIVE NO ONE IS GIVING ORDERS THERE IS NO CENTRAL AUTHORITY AND A LOT OF MONEY AND POWER IN THE FUTURE PALESTINIAN ENTITY IS AT STAKE WHEN YOU PUT ALL THIS TOGETHER IT IS INEVITABLE THAT THERE WILL BE A CERTAIN LEVEL OF ANARCHY SAYS BARRY RUBIN AUTHOR OF REVOLUTION UNTIL VICTORY THE POLITICS AND HISTORY OF THE PLO ADNAN HAMMAD HEAD OF THE PLOAFFILIATED PALESTINIAN DEMOCRATIC UNION LOOKS SHEEPISH WHEN HE IS ASKED WHY THE PLO HAS FOUR OFFICES IN JERICHO WE DON'T NEED THAT MANY BUT IT WOULD BE IMPOSSIBLE TO GET US ALL IN ONE OFFICE HE SAYS EVERYONE IS ALWAYS QUARRELING DESPITE BEING MR ARAFAT'S POLITICAL ALLY MR HAMMAD IS OPENLY CRITICAL OF THE WAY THE PLO HAS HANDLED THE NEGOTIATIONS WITH ISRAEL WE SPEND MORE TIME ORGANIZING LECTURES IN JERICHO THAN THEY DO RUNNING THE PEACE TALKS HE SAYS COMPLAINING THAT POLITICAL PROCRASTINATION MEANS THAT DELEGATES TO THE VARIOUS COMMITTEES ARE APPOINTED AT THE LAST MOMENT AND GIVEN INSUFFICIENT TIME TO PREPARE FOR JERICHO'S 14000 RESIDENTS HAVING A WIDE SELECTION OF PLO OFFICES FROM WHICH TO CHOOSE DOES HAVE CERTAIN ADVANTAGES PALESTINIAN ACTIVISTS SAY THE ISRAELI AUTHORITIES PREFER TO REFRAIN FROM INVOLVEMENT IN RESOLVING CIVIL DISPUTES LETTING THE POLITICAL GROUPS WORK IT OUT AMONG THEMSELVES RESIDENTS WITH A BEEF HAVE THEIR PICK OF PLO OFFICES NATURALLY GRAVITATING TO THE ONE WHERE THEY ENJOY FAMILY OR SOCIAL CONNECTIONS OR WIELD POLITICAL CLOUT IF THEY ARE UNHAPPY WITH THE RESULT A DIFFERENT OFFICE CAN ALWAYS BE ENLISTED TO HELP OUT SAEB NADIF HEAD OF THE FATAH FACTION'S OFFICE DISPUTES THE IDEA THAT THE SPLINTERING OF THE PLO ORGANIZATION INTO SEPARATE OFFICES IS A REFLECTION OF ANY SORT OF DISSATISFACTION WITH MR ARAFAT'S LEADERSHIP HE PREFERS INSTEAD TO CALL IT A SIGN OF BURGEONING POLITICAL EXPRESSION BUT HE'S QUICK TO ADD THAT HIS OFFICE IS ACTUALLY THE ONLY ONE WHICH ENJOYS MR ARAFAT'S APPROVAL WE ARE THE OFFICIAL PLO OFFICE IN JERICHO HE DECLARES DOWN THE STREET AT THE PALESTINIAN DEMOCRATIC UNION MR HAMMAD SITS BELOW A PORTRAIT OF MR ARAFAT AND SHAKES HIS HEAD SLOWLY THE HINT OF A SMALL SMILE EMERGING WE DON'T CONSIDER THEM THE PLO HE SNIFFS WE CONSIDER THEM FATAH 9402040145 940204 WHO'S NEWS SWINGNSLIDE CORP SWINGNSLIDE CORP JANESVILLE WIS RICHARD G MUELLER 44 YEARS OLD FORMERLY VICE PRESIDENT CONSUMER SALES MARKETING AND SERVICE AT TORO CO AND PRESIDENT/MANAGING DIRECTOR OF ITS WHEEL HORSE PRODUCTS UNIT WAS NAMED CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS MAKER OF WOODEN DOITYOURSELF HOME PLAYGROUND EQUIPMENT AS CHIEF EXECUTIVE HE SUCCEEDS THOMAS R BAER 40 WHO CONTINUES AS CHAIRMAN THERE ARE NOW EIGHT BOARD MEMBERS 9402040144 940204 USE OF STOCKOPTIONS CONTRACTS CLIMBS AS INVESTORS SEEK HEDGE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG FLA USE OF STOCKOPTIONS CONTRACTS TO HEDGE STOCK PORTFOLIOS AND SPECULATE IN THE MARKET IS SURGING PUSHING OPTIONS TRADING TO LEVELS NOT SEEN SINCE THE 1987 STOCKMARKET CRASH INVESTOR WARINESS AS THE DOW JONES INDUSTRIAL AVERAGE CONTINUES TO SET RECORDS HAS HELPED BRING NEW LIFE TO THIS PREVIOUSLY MORIBUND SECTOR OF THE US FINANCIAL MARKETS AS HAS THE PROTRACTED TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC THIS LONG DRAWNOUT TENDER OFFER HAS PROVEN TO BE VERY PROFITABLE FOR THE OPTIONS BUSINESS SAID MICHAEL SCHWARTZ SENIOR VICE PRESIDENT AT OPPENHEIMER & CO BUT THERE ALSO HAS BEEN A STEADY TURNAROUND IN THE BUSINESS WITH AN INFLUX OF NEW USERS AND A CHANGE OF DIRECTION FROM INDEX OPTIONS TO EQUITY OPTIONS MANY PARTICIPANTS ATTENDING THE CHICAGO BOARD OPTIONS EXCHANGE CONVENTION HERE THIS WEEKEND ARE WONDERING HOW LONG THE NATION'S FOUR MAJOR OPTIONS EXCHANGES CAN MAINTAIN THEIR MOMENTUM BEFORE LAST MONTH WHEN THESE MARKETS POSTED THEIR HIGHEST DAILY AND MONTHLY VOLUME TOTALS IN MORE THAN FIVE YEARS THE CONSENSUS IN THE US OPTIONS INDUSTRY WAS THAT IT HAD NEVER REALLY RECOVERED FROM THE CRASH THOUSANDS OF OVERLY AGGRESSIVE INVESTORS WHO USED OPTIONS CONTRACTS IN RISKY LEVERAGED TRADING STRATEGIES HAD BEEN DEVASTATED IN THE 1987 CATACLYSM AND OPTIONS TRADING FELL SHARPLY IN THE YEARS THAT FOLLOWED NOW SOME IN THE OPTIONS INDUSTRY ARE PREDICTING THAT THE INDUSTRY'S FIVEYEAR SLUMP MAY BE FINISHED I THINK THE STRENGTH WILL CONTINUE SAID HENRY NOTHNAGEL SENIOR VICE PRESIDENT IN CHARGE OF DERIVATIVES AT KEMPER SECURITIES INC IN 1994 I THINK WE'LL HAVE A VERY VOLATILE MARKET AND THAT LENDS ITSELF TO THE OPTIONS WHETHER YOU'RE A SPECULATOR OR A HEDGER OTHER OPTIONS SPECIALISTS CAUTION THAT THEIR INDUSTRY'S RECENT GAINS HAVEN'T MATCHED THE GROWTH OF TRADING IN THE REDHOT US STOCK MARKET AND INDEED JANUARY'S AVERAGE DAILY VOLUME OF 698872 OPTIONS CONTRACTS WAS DWARFED BY STOCK TRADING VOLUME OF ROUGHLY 400 MILLION SHARES A DAY BEFORE THE CRASH SKEPTICS SAID OPTIONS VOLUME ACCOUNTED FOR A BIGGER PERCENTAGE OF STOCKTRADING VOLUME YET LAST MONTH'S TOTAL VOLUME OF 147 MILLION OPTIONS CONTRACTS REPRESENTED THE BEST JANUARY THAT US OPTIONS MARKETS HAVE EVER HAD AND THE HIGHEST TOTAL FOR ANY MONTH SINCE OCTOBER 1987 OPTIONS DON'T EXIST IN A VACUUM SAID PAUL STEVENS PRESIDENT OF THE OPTIONS INDUSTRY COUNCIL A TRADE GROUP THE ECONOMY SEEMS TO BE IMPROVING THE STOCK MARKET WON'T QUIT AND OPTIONS ARE PARTICIPATING IN THAT BOOM STILL INVESTOR VOLUME SEEMS TO BE UP MORE THAN TOTAL VOLUME THAT SHOWS PEOPLE ARE USING OPTIONS IN INTELLIGENT WAYS TO HEDGE EQUITY POSITIONS AND DO MORE LONGTERM THINGS IN PARTICULAR INVESTORS CAN USE OPTIONS TO LAY OFF THE RISK OF HEAVY LOSSES IN THE EVENT OF A MAJOR STOCKMARKET CORRECTION THE MARKET IS AT RECORD HIGHS A LOT OF ANALYSTS ARE LOOKING FOR A PULLBACK TO SOME LEVEL MR NOTHNAGEL SAID WE'VE HAD THREE YEARS WITHOUT ANY KIND OF SIZABLE CORRECTION NOW PEOPLE ARE LOOKING TO PROTECT SOME OF THEIR GAINS WE'RE TELLING PEOPLE HERE THAT THIS MIGHT BE THE TIME TO HEDGE THEMSELVES PERHAPS THE MOST POPULAR TECHNIQUE FOR DOING THIS IS BUYING PUT OPTIONS WHICH CONFER THE RIGHT TO SELL STOCKS FOR PRESPECIFIED PRICES FOR INVESTORS WORRIED ABOUT A CORRECTION THE STRATEGY AMOUNTS TO ARRANGING IN ADVANCE TO SELL STOCKS FOR TODAY'S PRICES AT SOME POINT IN THE FUTURE THE COST OF THE STRATEGY IS THE PREMIUM OR FEE AN INVESTOR PAYS FOR THE OPTION PLUS THE STOCKBROKER'S COMMISSION FOR BLUECHIP STOCKS OPTIONS USUALLY COST A FEW HUNDRED DOLLARS APIECE EACH OPTION CONFERS THE RIGHT TO SELL 100 SHARES ANOTHER POPULAR WAY TO HEDGE A BIG STOCK PORTFOLIO IS TO BUY STOCKINDEX OPTIONS WHICH REPRESENT A BROAD BASKET OF STOCKS SUCH AS THE STANDARD & POOR'S INDEXES OF 100 AND 500 LEADING STOCKS YET TRADING OF THESE INDEX OPTIONS WHICH WAS ALL THE RAGE BEFORE THE 1987 CRASH IS BECOMING LESS PREVALENT THAN TRADING ORDINARY STOCK OPTIONS IN PART BECAUSE OF THE INCREASING SPECIALIZATION OF INVESTORS WE'RE TRADING MORE EQUITY OPTIONS WHEREAS WE USED TO SEE MORE INDEX OPTIONS TRADING SAID THOMAS HART SENIOR OPTIONS STRATEGIST FOR PAINEWEBBER INC JANUARY ENDED UP BEING A PRETTY GOOD MONTH FOR US MY TRADING BUSINESS HAS ACTUALLY BEEN PRETTY GOOD OVER THE LAST SIX OR SEVEN MONTHS THE MOST HEAVILY TRADED STOCK OPTIONS CONTRACT IN THE US LAST MONTH WAS TELEFONOS DE MEXICO THE BIG MEXICAN TELECOMMUNICATIONS COMPANY OPTIONS SPECIALISTS SAY INVESTORS VIEW MEXICO AS AN EMERGING GROWTH AREA AND TELEFONOS REPRESENTS ONE OF THE FEW OPPORTUNITIES TO INVEST IN THE REGION A TOTAL OF 11 MILLION TELEFONOS OPTIONS CHANGED HANDS LAST MONTH NEXT MOST POPULAR AMONG OPTIONS INVESTORS WAS PARAMOUNT COMMUNICATIONS WHICH TRADED 694005 CONTRACTS IN JANUARY STRATEGISTS SAY THE WAY THE TENDER OFFERS FOR PARAMOUNT ARE STRUCTURED IS IN ITSELF A MAJOR BOON FOR PREVIOUSLY SLEEPY PARAMOUNT OPTIONS CONTRACTS WHICH ARE TRADED AT THE CBOE AND AT THE AMERICAN STOCK EXCHANGE IN NEW YORK THIS HAS BEEN VERY GOOD FOR THE OPTIONS CONTRACT SAYS MR SCHWARTZ OF OPPENHEIMER BOTH AS AN INVESTOR HEDGE VEHICLE AND FOR ITS MARKET MAKERS AT THE CBOE AND AMEX WHO ARE NOW ACTIVELY TRADING AN OPTION THAT WASN'T PREVIOUSLY AMONG THE LEADERS MORE BROADLY A SURGE IN MERGER AND SPINOFF ACTIVITY SUCH AS THE JANUARY SPINOFF OF EASTMAN KODAK CO'S CHEMICAL BUSINESS AS EASTMAN CHEMICAL CO HAS BENEFITED THE OPTIONS BUSINESS AS A WHOLE STRATEGISTS SAY WE'VE SEEN MORE MERGERS IN OPTIONABLE STOCKS THAN WE'VE EVER SEEN SMALLER COMPANIES BEING TAKEN OVER BY RECOGNIZABLENAME COMPANIES SAID LAURA HOLDERMAKOS VICE PRESIDENT FOR EQUITY OPTIONS AT AG EDWARDS & CO THE JANUARY OPTIONS EXPIRATION WAS PROBABLY THE BIGGEST EXPIRATION THAT WE HAVE HAD SINCE 1987 9402040143 940204 WHO'S NEWS PYRAMID TECHNOLOGY CORP PYRAMID TECHNOLOGY CORP SAN JOSE CALIF KENT ROBERTSON 52 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS COMPUTER TECHNOLOGY COMPANY HE SUCCEEDS GARY VALENZUELA WHO LEFT THE COMPANY MR ROBERTSON WHO WAS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF RASTEROPS CORP ALSO SUCCEEDS ALLEN SMIRNEY AS SECRETARY MR SMIRNEY REMAINS CHIEF COUNSEL 9402040142 940204 GM PENSION FUND SEEKS REPLACEMENT FOR BANKERS TRUST BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GENERAL MOTORS CORP HAS DECIDED TO END A CONTRACT WITH BANKERS TRUST NEW YORK CORP TO SERVICE ITS 11 BILLION EMPLOYEE SAVINGS FUND APPARENTLY DUE TO A DISPUTE OVER FEES GM'S DECISION COMES AS BANKERS TRUST HAS BEEN TRYING TO INCREASE ACTIVITY AT ITS ASSETSERVICING UNIT IT'S CLEARLY A BIG ACCOUNT AND LOSING SUCH AN ACCOUNT IS NOT AN OCCASION FOR REJOICING SAID ARTHUR SOTER AN ANALYST WITH MORGAN STANLEY & CO BUT IT'S NOT THE KISS OF DEATH WHEN YOU'RE TRYING TO GROW SOMETHING YOU HAVE SOME BUMPS IN THE ROAD THE GM EMPLOYEE SAVINGS FUND INVOLVES 401K PLANS FOR 270000 PARTICIPANTS OR ABOUT 10 OF THE NUMBER OF INDIVIDUAL ACCOUNTS SERVICED BY THE BANKERS TRUST UNIT BANKERS TRUST KEEPS TRACK OF PARTICIPANTS AT CENTERS IN LOS ANGELES JERSEY CITY NJ AND NASHVILLE TENN BANKERS TRUST AND GM DECLINED TO COMMENT ON THE STATUS OF THE SERVICE CONTRACT A BANKERS TRUST INTERNAL MEMO HOWEVER CITED CONTINUING SERIOUS DIFFERENCES BETWEEN THE BANK AND GM DURING CONTRACT NEGOTIATIONS WHICH HAD LASTED THREE MONTHS ACCORDING TO THE MEMO DATED JAN 31 THE TWO COMPANIES HAVE MUTUALLY TERMINATED THE NEGOTIATIONS AND GM IS SEEKING ANOTHER COMPANY TO HANDLE THE ACCOUNTS AN ANNOUNCEMENT IS EXPECTED IN THE NEXT COUPLE OF WEEKS THE SERVICING CONTRACT INVOLVES THE 11 BILLION GM EMPLOYEE 401K PLAN CALLED GM SAVINGS STOCK PURCHASE PROGRAM FOR SALARIED PERSONNEL AND GM PERSONAL SAVINGS PLAN FOR HOURLY EMPLOYEES ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION BANKERS TRUST AND GM FAILED TO REACH AN AGREEMENT ON FEES THE MEMO SAID SERVICE QUALITY WAS NOT A FACTOR BUT COMPENSATION WAS THE ISSUE IN DISPUTE THE MEMO INDICATED THAT GM INTENDS TO TRANSFER THE CONTRACT TO ANOTHER COMPANY IN EARLY 1995 BANKERS TRUST HAS SERVICED THE EMPLOYEE PENSION FUND SINCE 1991 SOME INSIDERS ASSERT THAT BANKERS TRUST SUBMITTED A LOW BID TO LAND THE CONTRACT INITIALLY AND THAT GM BALKED WHEN BANKERS TRUST SOUGHT HIGHER FEES IN A CONTRACT RENEWAL BANKERS TRUST OFFICIALS DECLINED TO COMMENT ON WHAT WOULD HAPPEN TO EMPLOYEES INVOLVED IN THE GM CONTRACT ACCORDING TO AN EMPLOYEE IN BANKERS TRUST'S LOS ANGELES OFFICE ABOUT 70 PEOPLE WORKED SOLELY ON THE GM ACCOUNT THE EMPLOYEE WHO SPOKE ON CONDITION OF ANONYMITY SAID MANAGEMENT HAS TOLD THOSE WHO WORK ON THE GM TEAM THAT THEY WOULD BE GIVEN BUYOUT PACKAGES AND/OR OUTPLACEMENT HELP THEY DIDN'T OFFER TO PLACE US SOMEWHERE ELSE IN THE COMPANY THE EMPLOYEE SAID 9402040141 940204 INTERNATIONAL MURDOCH'S BRITISH SATELLITETV VENTURE LONG A LOSER POSTS HUGE JUMP IN PROFIT BY RICHARD L HUDSON AND S KARENE WITCHER STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON RUPERT MURDOCH'S BRITISH SATELLITETV VENTURE ONCE DERIDED AS AN ALBATROSS AROUND HIS NECK HAS SUDDENLY BECOME A GOOSE LAYING GOLDEN EGGS THE VENTURE BRITISH SKY BROADCASTING LTD ANNOUNCED A SIXFOLD JUMP IN NET INCOME YESTERDAY FOR THE FISCAL FIRST HALF ENDED DEC 31 PROFIT SOARED TO 818 MILLION 1224 MILLION FROM 1248 MILLION A YEAR EARLIER THE VENTURE SAID THE NUMBER OF ITS SUBSCRIBERS ROSE 40 DURING THE HALF YEAR TO 325 MILLION OR 15 OF BRITISH HOMES AS A DIVIDEND ON ITS GOOD FORTUNE IT ALSO SAID IT HAS STARTED PAYING BACK ITS 830 MILLION DEBT TO MR MURDOCH'S NEWS CORP AND OTHER HOLDERS THE VENTURE'S RESULTS WHICH FINALLY ENDED ITS REPUTATION AS A BLACK HOLE FOR MR MURDOCH'S CASH ALSO HELPED SPRUCE UP ITS PARENT COMPANY'S PERFORMANCE ON WEDNESDAY NEWS CORP REPORTED A 70 JUMP IN NET INCOME TO 7689 MILLION AUSTRALIAN DOLLARS 5501 MILLION FOR THE HALF BY 1990 BSKYB'S LOSSES APPEARED OUT OF CONTROL AND SOME ANALYSTS BEGAN SPECULATING THAT IT MIGHT PULL DOWN MR MURDOCH'S ENTIRE GLOBAL MEDIA EMPIRE BUT THAT YEAR IT MERGED WITH A YOUNG RIVAL BRITISH SATELLITE BROADCASTING PLC ELIMINATING COMPETITION AND GREATLY EXPANDING ITS PROGRAMMING MORE BRITONS OVERCOMING THEIR INITIAL DISTASTE FOR MOUNTING A DISH ON THEIR HOUSES BEGAN SUBSCRIBING IN MARCH 1992 THE VENTURE BROKE INTO THE BLACK BUT THE LATEST BOOST CAME LARGELY FROM A NEW PROGRAMMING AND MARKETING CAMPAIGN BEGUN LAST SEPTEMBER BSKYB ADDED MORE CHANNELS AND INTRODUCED A NEW FEE STRUCTURE ENCOURAGING VIEWERS TO PAY EXTRA TO RECEIVE ALL OF ITS CHANNELS RATHER THAN JUST A FEW MONTHLY SUBSCRIPTIONS RANGE FROM 699 TO 1999 THE RESULT IN THE HALF REVENUE BALLOONED 41 TO 2414 MILLION FROM 1715 MILLION A YEAR EARLIER LONDON MEDIA ANALYSTS FORECAST THAT FOR AT LEAST THE NEXT FEW YEARS BSKYB HAS NOWHERE TO GO BUT UP ITS MAIN POTENTIAL RIVALS BRITAIN'S CABLE NETWORKS HAVE SO FAR PROVED ALLIES BY DISTRIBUTING BSKYB'S PROGRAMMING TO THEIR OWN SUBSCRIBERS ANOTHER POTENTIAL COMPETITOR A VIDEOONDEMAND SERVICE PLANNED BY BRITISH TELECOMMUNICATIONS PLC IN THE MID1990S MAY SIMILARLY END UP WORKING WITH BSKYB BY 2000 ACCORDING TO ANALYST ALASTAIR SMELLIE OF LEHMAN BROTHERS INC AS MANY AS 11 MILLION BRITISH HOMES MAY BE TUNED IN I THINK BSKYB IS AN INCREASINGLY ATTRACTIVE PROPOSITION BSKYB SAID THAT LAST YEAR IT REPAID 50 MILLION OF ITS DEBT TO SHAREHOLDERS LEAVING 500 MILLION OWED TO NEWS CORP A TOTAL OF 330 MILLION TO PEARSON GRANADA AND CHARGEURS AND 430 MILLION TO BANKS SAID RICHARD BROOKE BSKYB'S CHIEF FINANCIAL OFFICER HE ADDED THAT BSKYB IS CONSIDERING REFINANCING SOME OF THE HOLDERS' DEBT TURNING IT INTO BANK DEBT BUT THE VENTURE DOESN'T PLAN TO TAP THE STOCK MARKET SQUELCHING WIDESPREAD SPECULATION YESTERDAY A NEWS CORP SPOKESMAN SAID IT HAS NO INTEREST IN SEEING BSKYB SHARES SOLD IN A PUBLIC OFFERING IN SYDNEY TRADING THURSDAY NEWS CORP SHARES ROSE 49 TO CLOSE AT A1056 9402040140 940204 INTERNATIONAL WORLD ECONOMY US CAMPAIGN AGAINST BRIBERY FACES RESISTANCE FROM FOREIGN GOVERNMENTS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ASSUME YOUR COMPANY MAKES HUGE AND COSTLY GENERATORS FOR POWER PLANTS A FOREIGN OFFICIAL PROMISES YOU A BIG ORDER PROVIDED YOU SLIP A FEW MILLION DOLLARS INTO HIS SWISS BANK ACCOUNT YOUR COMPANY NEEDS THE WORK SO YOU AGREE WHAT HAVE YOU DONE IF YOU'RE AN AMERICAN YOU'VE COMMITTED A FELONY AND FACE UP TO FIVE YEARS IN PRISON IF THE COPS FIND OUT BUT IF YOU'RE GERMAN DUTCH OR JAPANESE AMONG OTHERS YOU'VE MERELY BOOKED ANOTHER CORPORATE TAX DEDUCTION THE VALUE OF THE BRIBE AND YOU'VE GOT THE CONTRACT AS WELL THAT'S UNFAIR THE CLINTON ADMINISTRATION INSISTS IT WANTS THE LEADING INDUSTRIAL NATIONS TO ADOPT STRICT ANTIBRIBERY LAWS LIKE THOSE OF THE US THE MOST COMPREHENSIVE ONES ANYWHERE IN HOPES THAT TOUGH NEW RULES WILL RAISE CORPORATE MORALITY WORLDWIDE IT ALSO WOULD LET US COMPANIES COMPETE ON AN EQUAL BASIS FOR THOSE FAT CONTRACTS THE US HAS TAKEN A STEP NO ONE ELSE HAS AND IT PUTS OUR BUSINESS PEOPLE REGARDING ILLICIT PAYMENTS IN A DIFFICULT POSITION COMPLAINS MICKEY KANTOR THE CHIEF US TRADE NEGOTIATOR COMPANIES WHICH DON'T PAY BRIBES BECAUSE OF LEGAL CONSTRAINTS OR CORPORATE PRACTICE ARE UNFAIRLY DISADVANTAGED SAYS DANIEL TARULLO ASSISTANT SECRETARY OF STATE FOR ECONOMIC AND BUSINESS AFFAIRS AND POINT MAN FOR WASHINGTON'S CAMPAIGN US BUSINESSMEN WELCOME THE EFFORT BECAUSE THE PROBLEM IS GETTING WORSE THEY SAY EUROPEAN COMPANIES IN PARTICULAR BATTERED BY RECESSION ARE EXTRA HUNGRY FOR OVERSEAS WORK BECAUSE THERE'S SO LITTLE TO DO AT HOME SO THEY DO MORE BRIBING IT'S COMPOUNDED BY THE FACT THAT MUCH OF THE AVAILABLE WORK IS FOR HUGE INFRASTRUCTURE PROJECTS IN DEVELOPING LANDS WHERE POORLY PAID AND SUSCEPTIBLE OFFICIALS DECIDE WHO GETS THE BUSINESS ONE US EXECUTIVE SAYS HIS COMPANY RECENTLY WAS TOLD IT HAD WON A BIG MIDEAST POWER PROJECT BUT AFTER SOME LASTMINUTE FUNNY BUSINESS HE SAYS THE CONTRACT WENT TO EUROPE A RETIRED BRITISH EXECUTIVE WITH LONG EXPERIENCE IN ASIA AFRICA AND THE CARIBBEAN ONCE GRADED BRIBES THIS WAY 5 OF 200000 WILL BE INTERESTING TO A SENIOR OFFICIAL BELOW THE TOP RANK WHILE 5 OF 200 MILLION JUSTIFIES THE SERIOUS ATTENTION OF THE HEAD OF STATE IN THE 1990S HE ADDED RATES OF 10 AND 15 ARE MORE OFTEN HEARD IN THE US CASE CITED ABOVE THE COMMISSION WAS 20 STOPPING THIS IS DIFFICULT LEADING INDUSTRIAL NATIONS SUCH AS FRANCE GERMANY AND BRITAIN CITE MANY REASONS WHY THEY CAN'T ADOPT US LAWS SUCH AS THE FOREIGN CORRUPT PRACTICES ACT WHICH OUTLAWS BRIBES OF FOREIGN OFFICIALS THEY SUGGEST FURTHER STUDY BY COMMITTEE THAT'S NO LONGER GOOD ENOUGH FOR THE AMERICANS A COMMITTEE HAS BEEN AT WORK FOR FOUR YEARS WITHOUT NOTABLE RESULT SO IN DECEMBER THE US ASKED THAT PANEL FORMED BY THE 26NATION ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN PARIS TO DRAFT STRONG AND SPECIFIC RECOMMENDATIONS QUICKLY TO OUTLAW BRIBES OF FOREIGN OFFICIALS AND END THEIR TAX ADVANTAGES THE TIME IS RIPE FOR ACTION THE STATE DEPARTMENT SAYS BUT ACTION IS A RELATIVE THING AT THE OECD FIRST IT WILL HOST ANOTHER MEETING FEB 14 TO CONSIDER THE US PROPOSAL IF OFFICIALS AGREE ON A TEXT MINISTERS WILL MEET IN APRIL OR MAY TO CONSIDER APPROVAL THAT COULD PRODUCE GUIDELINES TO HELP ALL MEMBER STATES DRAFT THEIR OWN ANTIBRIBERY CODES ALONG SIMILAR LINES YET THINGS AREN'T LIKELY TO MOVE THAT FAST SOME REASONS ARE LEGAL AND POLITICAL MANY GOVERNMENTS CLAIM ANTICORRUPTION LAWS MIGHT BE SEEN AS MEDDLING IN OTHER COUNTRIES' AFFAIRS AND UNLIKE THE AMERICANS MANY AREN'T EAGER TO REGULATE THEIR OWN CITIZENS OVERSEAS ESPECIALLY IN BUSINESS OR TAX MATTERS WE CANNOT ACCEPT THE IDEA OF THIS OECD RECOMMENDATION SOMEWHAT OBLIGING JAPAN TO CHANGE ITS CRIMINALLAW SYSTEM SAYS A FOREIGN MINISTRY OFFICIAL IN TOKYO BUT DON'T FORGET GREED AND DISTRUST COMPANIES WANT MORE BUSINESS AND SUSPECT THEIR RIVALS WON'T PLAY FAIR SO THEY OPPOSE EFFORTS TO LEGISLATE IDEALISM NOT LONG AGO A GERMAN ATTEMPT TO ABOLISH TAX CREDITS FOR FOREIGN BRIBES WAS REJECTED BY THE BUNDESTAG INDUSTRIAL NATIONS HAVE PLENTY OF DOMESTIC CORRUPTION THINK OF JAPAN AND ITALY YET MUCH BRIBERY ALSO OCCURS WHERE LOCAL OFFICIALS FINANCE MAJOR PROJECTS WITH FOREIGN AID AND THAT MAY CONTINUE UNTIL TAXPAYERS WHO SUPPLY THOSE FUNDS GET ANGRY ENOUGH TO DEMAND A HALT OR THE US ACTS AGAINST BIGTIME BRIBERS ON ITS OWN 9402040139 940204 INTERNATIONAL BRAZIL LEADERS SCRAMBLE TO REVIVE ECONOMIC PLAN SAO PAULO BRAZIL REUTER BRAZIL'S GOVERNMENT STRUGGLED TO KEEP AN ECONOMIC STABILIZATION PLAN ON TRACK AFTER CONGRESS SPURNED A VOTE ON A KEY MEASURE THE LEGISLATURE RACKED BY DIVISIONS AND INFIGHTING AHEAD OF GENERAL ELECTIONS IN OCTOBER FAILED WEDNESDAY NIGHT TO SCHEDULE AND APPROVE A CONSTITUTIONAL AMENDMENT CENTRAL TO GOVERNMENT PROPOSALS TO COMBAT HIGH INFLATION AN INFURIATED ECONOMY MINISTER FERNANDO HENRIQUE CARDOSO BITTERLY ATTACKED THE LEGISLATURE IN RESPONSE SAYING THE BRAZILIAN PEOPLE WERE PAYING THE PRICE FOR ITS LACK OF ACTION WE GO FROM IMPASSE TO IMPASSE HOW MUCH MORE CAN THE PEOPLE TAKE MR CARDOSO SAID GOVERNMENT LEADERS IN CONGRESS REDOUBLED EFFORTS TO LINE UP A QUICK VOTE ON THE CONSTITUTIONAL AMENDMENT CREATING A SPECIAL WELFARE FUND SOUGHT BY THE GOVERNMENT BUT FINAL APPROVAL IF IT COMES MIGHT ONLY OCCUR NEXT WEEK OR EVEN LATER THE GOVERNMENT IS OPERATING WITHOUT AN APPROVED BUDGET FOR 1994 IT WAS THE SECOND TIME IN A WEEK THAT CONGRESS HAD BALKED AT GOVERNMENT PROPOSALS AIMED AT BALANCING THE BUDGET AND REINING IN INFLATION CURRENTLY RUNNING AT 40 A MONTH LAST WEEK THE LEGISLATURE SNUBBED THE GOVERNMENT BY APPROVING ONLY PART OF A PACKAGE OF TAX INCREASES 9402040138 940204 WHO'S NEWS DIGICON INC DIGICON INC HOUSTON RICHARD W MCNAIRY FORMERLY AN EXECUTIVE AT HALLIBURTON CO WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF SEISMIC DATA TO THE PETROLEUM INDUSTRY MR MCNAIRY 53 YEARS OLD FILLS A NEWLY CREATED POSITION 9402040137 940204 STORMS IN EAST PROMPT CLAIMS FOR INSURANCE TOTALING 725 MILLION RAHWAY NJ INSURANCE COMPANIES ARE EXPECTED TO PAY 725 MILLION IN CLAIMS ARISING FROM DAMAGE CAUSED BY LAST MONTH'S FRIGID WEATHER IN THE EASTERN US THE PROPERTY CLAIMS SERVICE DIVISION OF THE AMERICAN INSURANCE SERVICES GROUP THE OFFICIAL SCOREKEEPER OF INSURANCE CLAIMS SAID COLLAPSED ROOFS BUSTED PIPES DOWNED GUTTERS AND POWER BLACKOUTS TRIGGERED CLAIMS IN 20 STATES CONNECTICUT NEW YORK NEW JERSEY AND PENNSYLVANIA SUFFERED THE MOST SEVERE DAMAGE PENNSYLVANIA ALONE HAD 65 MILLION IN DAMAGES THE STORMS HIT JAN 14 THROUGH JAN 20 THE CLAIMS SERVICE IS CURRENTLY PREPARING AN ESTIMATE ON THE LOS ANGELES EARTHQUAKE OF JAN 17 UNOFFICIAL ESTIMATES PUT THE CLAIMS AT MORE THAN 2 BILLION 9402040136 940204 EMC CORP'S NET SOARED FOURFOLD IN FOURTH QUARTER BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL EMC CORP CONTINUING ITS RAPID GROWTH LARGELY AT INTERNATIONAL BUSINESS MACHINES CORP'S EXPENSE SAID FOURTHQUARTER PROFIT MORE THAN QUADRUPLED AS REVENUE MORE THAN DOUBLED TO 2486 MILLION THE HOPKINTON MASSBASED MAKER OF DATASTORAGE SYSTEMS FOR MAINFRAME COMPUTERS POSTED NET INCOME OF 468 MILLION OR 23 CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER NET INCOME WAS 104 MILLION OR SIX CENTS A SHARE ON 15 FEWER SHARES REVENUE WAS 1178 MILLION THE RESULTS CAME IN SLIGHTLY ABOVE MOST ANALYSTS' ESTIMATES OF 20 CENTS A SHARE THE STOCK ROSE 25 CENTS TO 2150 A SHARE IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF MORE THAN 27 MILLION SHARES EMC CONTINUES TO EXECUTE FLAWLESSLY WHILE ITS BIGGER AND MORE POWERFUL COMPETITORS KEEP ON STUMBLING SAYS MICHAEL GERAN AN ANALYST WITH THE PERSHING DIVISION OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP MICHAEL RUETTGERS EMC'S PRESIDENT AND CHIEF EXECUTIVE CALLED 1993 A SPECTACULAR YEAR FOR EMC AND NOTED THAT GROSS PROFIT MARGINS ACTUALLY ROSE AT THE END OF THE YEAR TO 53 FROM 527 BUCKING THE INDUSTRY TREND I'D GUESS WE WERE THE ONLY COMPUTERHARDWARE COMPANY WITH IMPROVED GROSS MARGIN IN THE FOURTH QUARTER HE PREDICTED THAT THE COMPANY WOULD CONTINUE TO GROW AND GAIN MARKET SHARE IN 1994 AND THAT COMPETING PRODUCTS FROM IBM AND STORAGE TECHNOLOGY CORP WOULDN'T BE WIDELY AVAILABLE UNTIL MIDYEAR HOWEVER CITING WHAT HE CALLED THE LAW OF LARGE NUMBERS AND THE COMPANY'S DOUBLING OF ITS ANNUAL REVENUE GROWTH RATE IN 1993 HE CAUTIONED THAT IT WOULD BE DIFFICULT TO GROW AT THAT RATE AGAIN THIS YEAR ANALYSTS SAY EMC'S RAPID EXPANSION IS REMARKABLE GIVEN THAT ITS MARKET MAINFRAME DATA STORAGE ISN'T GROWING EMC'S GAINS HAVE COME BY GRABBING MARKET SHARE FROM ITS MUCH LARGER COMPETITORS INCLUDING IBM AMDAHL CORP STORAGE TECHNOLOGY AND HITACHI LTD OF JAPAN EMC HAS ACCOMPLISHED WHAT NO OTHER COMPANY HAS BEEN ABLE TO DO FOR YEARS TAKE A VISIBLE MARKET SHARE IN THE MAINFRAME COMPUTER INDUSTRY SAYS BARRY F BOSAK AN ANALYST WITH SMITH BARNEY SHEARSON EMC'S SHARE OF THE MAINFRAME STORAGE MARKET GREW TO 147 LAST YEAR FROM 62 IN 1992 ACCORDING TO MARKET RESEARCHER INTERNATIONAL DATA CORP EMC ACCOMPLISHED THIS WITH A RADICAL DESIGN APPROACH IN WHICH SCORES OF SMALL HARDDISK DRIVES ARE WIRED TOGETHER TO FUNCTION AS A SINGLE LARGE DATA RESPOSITORY AN APPROACH KNOWN AS RAID FOR REDUNDANT ARRAYS OF INEXPENSIVE DISKS THIS TAKES ADVANTAGE OF THE ECONOMIES OF LARGESCALE PRODUCTION AND COMMODITY PRICING OF THE SMALLER DEVICES WHILE PROVIDING MORE CAPACITY IN A SMALLER CABINET EMC BUYS ITS COMPONENT DRIVES FROM A VARIETY OF SUPPLIERS WIRES THEM INTO RACKS AND TIES THEM TOGETHER WITH THE CRUCIAL SOFTWARE AND CACHE DEVICES THAT MAKES THE INDIVIDUAL DRIVES WORK TOGETHER AS ONE MR RUETTGERS SAYS THE COMPANY PLANS TO PUSH BEYOND MAINFRAMES THIS YEAR INTO NEW MARKET SEGMENTS SUCH AS ONLINE SYSTEMS AND MULTIMEDIA DATA STORAGE IN WHICH VIDEO VOICE AND INTERACTIVE SERVICES DEMAND FAR GREATER STORAGE CAPACITY THAN IS NEEDED TODAY FOR THE YEAR EMC'S NET INCOME MORE THAN QUADRUPLED TO 1271 MILLION OR 65 CENTS A SHARE FROM 295 MILLION OR 17 CENTS A SHARE ON 14 FEWER SHARES IN 1992 REVENUE ROSE TO 7826 MILLION FROM 3857 MILLION 9402040135 940204 TWO DREAMERS ONE DREAM TO BE MEDIA KINGS TED TURNER SEES INTO HIS FUTURE SPIES A NETWORK BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WITH HIS TWO NEW HOLLYWOOD STUDIOS IN THE BAG TED TURNER IS ON THE PROWL AGAIN HE WANTS A NETWORK MORE THAN EVER HE SAYS HE IS INTERESTED IN NEW BUSINESS ALLIANCES AND FOR THE FIRST TIME EVER THE RESTLESS CHAIRMAN CHIEF EXECUTIVE AND FOUNDER OF TURNER BROADCASTING SYSTEM INC SAYS HE IS PREPARED TO GIVE UP HIS 51 VOTING CONTROL OF THE COMPANY TO ACCOMPLISH THOSE GOALS HE WOULD NOW PART WITH A SIZABLE CHUNK OF HIS STOCK IN A BLUE MINUTE HE SAYS THE NEXT MOVE I MAKE I'LL BE BELOW 51 INDEED THE MAN WHO WAS CONSIDERING BREAKING UP HIS COMPANY A YEAR AGO NOW APPEARS BACK IN IT FOR THE LONG TERM EVEN IF IT MEANS HE HAS A SMALLER STAKE NOW 55 YEARS OLD AND MARRIED TO ACTRESS JANE FONDA MR TURNER'S DISTINCTIONS ARE MANY AND VARIED A WINNER OF THE AMERICA'S CUP IN HIS YACHT COURAGEOUS IN 1977 AND THE OWNER OF THE ATLANTA BRAVES HE STARTED HIS BUSINESS CAREER WITH A BILLBOARD COMPANY AT AGE 24 AND BUILT IT INTO A BROACASTING EMPIRE THAT GREW TO INCLUDE CABLE NEWS NETWORK AS HE DISCUSSES THE FUTURE 11 TV SCREENS IN HIS SPACIOUS OFFICE BEAM OUT PROGRAMMING FROM HIS OWN CABLE NETWORKS AS WELL AS THE COMPETITION HIS CALENDAR IS JAMMED WITH MEETINGS WITH MEDIA AND ENTERTAINMENT COMPANIES AS HE PONDERS HIS NEXT MOVE AFTER LAST SUMMER'S PURCHASE OF CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA CORP I DON'T LIKE BEING THE NINTH OR 10THLARGEST PLAYER IN THE GAME HE SAYS NOW VIACOM WHICH WAS MY SIZE IS TWICE AS BIG SONY WHICH OWNS COLUMBIA IS 10 TIMES AS BIG MURDOCH IS A LOT BIGGER MR TURNER LETS IT DROP THAT HE HAS MET WITH EXECUTIVES AT COLUMBIA BUT WON'T DISCUSS THOSE TALKS FURTHER NOR WILL HE COMMENT ON DEALS HE MAY BE WORKING ON BUT PEOPLE CLOSE TO THE COMPANY SAY MR TURNER HAS RECENTLY TALKED WITH BOTH NBC A DIVISION OF GENERAL ELECTRIC CO AND ABC A UNIT OF CAPITAL CITIES/ABC INC ONE PERSON CLOSE TO THE COMPANY SAYS MR TURNER MIGHT BE WILLING TO DROP HIS VOTING SHARES IN TURNER BROADCASTING AS LOW AS 25 TO DO SOME KIND OF NETWORK DEAL AND FORGE OTHER ALLIANCES SUCH A DIMINISHED STAKE WOULD UNDERSCORE THE DAUNTING TASK MR TURNER HAS SET FOR HIMSELF ALREADY ANY MAJOR CORPORATE MOVE IS SUBJECT TO VETO BY A BOARD DOMINATED BY CABLETV OPERATORS INCLUDING TELECOMMUNICATIONS INC AND TIME WARNER INC THE COMPANY'S NEXT TWO BIGGEST SHAREHOLDERS THEY HAVE IN THE PAST BLOCKED MOVES WHERE HIS INTERESTS CONFLICTED WITH THEIRS AND EVEN IN CASES WHERE MR TURNER HAS PREVAILED LIKE THE PURCHASE OF THE CASTLE ROCK AND NEW LINE MOVIE STUDIOS LAST YEAR HE HAS GIVEN UP SOME MANEUVERING ROOM IN ADDITION TO THE NEARLY 800 MILLION TURNER BROADCASTING PAID FOR THE TWO STUDIOS IT GRANTED THEIR EXECUTIVES CONSIDERABLE AUTONOMY MR TURNER NONETHELESS FEELS HIS COMPANY MUST GROW EVEN IF IN THE PROCESS HIS OWN ONCEABSOLUTE CONTROL DECLINES AS HE EXPLAINS IT JUST TAKE A LOOK AT THE SOFTDRINK BUSINESS HOW MANY VIABLE COMPETITORS ARE THERE ONLY TWO HOW ABOUT THE AIRLINE BUSINESS THERE ARE FOUR OR FIVE HOW MANY REALLY VIABLE FASTFOOD CHAINS ARE THERE SO 10TH IS NOT SO HOT MR TURNER NEEDS A NEW NETWORK HE SAYS PARTLY BECAUSE HE IS HOBBLED BY HIS CABLEPROGRAMMER STATUS WE CAN'T BID FOR THE OLYMPICS WE CAN'T BE A PRIMARY BIDDER FOR THE NFL WE'RE ALWAYS BIDDING ON SECONDARY PACKAGES HE COULD ALSO SAVE MONEY BY COMBINING VARIOUS NETWORKNEWS FUNCTIONS WITH CNN HE SAYS HIS TWO NEW STUDIOS WILL BE A BIG HELP IN SUPPLYING FRESH SOURCES OF PROGRAMMING BUT NOT RIGHT AWAY THE COMPANY PLANS A GRADUAL INCREASE IN THE NUMBER OF MOVIES ITS STUDIOS MAKE EACH YEAR COMPANY OFFICIALS SAY TURNER PICTURES THE COMPANY'S INTERNALLY DEVELOPED STUDIO WILL GO FROM MAKING ONE MOVIE IN 1993 THE CIVIL WAR EPIC GETTYSBURG TO AS MANY AS EIGHT IN FIVE YEARS SAYS TURNER ENTERTAINMENT PRESIDENT SCOTT SASSA WHO WILL OVERSEE THAT VENTURE ALONG WITH THE COMPANY'S CABLE NETWORKS TBS TNT THE CARTOON NETWORK AND THE UPCOMING TURNER CLASSIC MOVIES CASTLE ROCK AND NEW LINE WHICH REPORT DIRECTLY TO MR TURNER WILL ALSO ADD ONLY A COUPLE OF FILMS A YEAR TO THEIR RESPECTIVE PRODUCTION SCHEDULES EVEN THEN MR TURNER STILL FACES CONSIDERABLE HURDLES IN THE MOVIE BUSINESS CHIEF AMONG THOSE IS COST HOLLYWOOD EXECUTIVES SAY A MAJOR STUDIO CAN SPEND 1 MILLION A DAY IN ADMINISTRATIVE COSTS AND ANOTHER 800 MILLION OR SO EACH YEAR PRODUCING MOVIES BY STARTING OUT SLOWLY TURNER BROADCASTING SAYS IT CAN FUND BIGBUDGET MOVIES LIKE CASTLE ROCK'S IN THE LINE OF FIRE IT HAS PLEDGED TO MAKE MOVIES LIKE THAT FOR BOTH CASTLE ROCK AND NEW LINE SUCH FILMS TYPICALLY AVERAGE AROUND 40 MILLION PER PICTURE AFTER ADVERTISING COSTS ARE FIGURED IN BUT TURNER OFFICIALS SAY MOST OF THE COSTS CAN BE FINANCED THROUGH THE CASH FLOW OF THE STUDIOS AND TURNER ITSELF OUR INCREMENTAL BORROWING IS EXPECTED TO BE MODEST SAYS WAYNE PACE TURNER'S CHIEF FINANCIAL OFFICER INITIALLY CASTLE ROCK AND NEW LINE COMBINED SHOULD CONTRIBUTE SMALL OPERATING PROFITS TO TURNER BROADCASTING THIS YEAR MR PACE SAYS ALTHOUGH CASTLE ROCK HAD BEEN PLAGUED BY CASHFLOW PROBLEMS NEW LINE HAS BEEN PROFITABLE FOR YEARS AND ITS 1994 PROFITS SHOULD JUMP TO 23 MILLION FROM 13 MILLION LAST YEAR ACCORDING TO A SECURITY AND EXCHANGE COMMISSION FILING MANAGING THE NEW STUDIOS COULD ALSO PROVE TRICKY ALL THREE WILL OPERATE INDEPENDENTLY WHILE MR SASSA WILL OVERSEE TURNER PICTURES MR TURNER HIMSELF WILL OVERSEE CASTLE ROCK AND NEW LINE HE HAS BENT OVER BACKWARD TO MAKE SURE THAT HE KEEPS THEIR CREATIVE TALENT SO CRITICAL TO SUCCESSFUL MOVIE MAKING INTACT HE SIGNED BOTH ROB REINER PERHAPS CASTLE ROCK'S MOST RESPECTED PRODUCER AND DIRECTOR AND ALAN HORN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE TO SEVENYEAR CONTRACTS SIMILARLY NEW LINE CHIEF EXECUTIVE OFFICER AND FOUNDER ROBERT SHAYE AND PRESIDENT MICHAEL LYNNE WHO BUILT A SUCCESSFUL 200FILM LIBRARY OF MOSTLY LOWBUDGET BMOVIES HAVE SIGNED EMPLOYMENT AGREEMENTS THROUGH 1998 TO SEAL THAT DEAL MR TURNER AGREED TO PAY BOTH MEN MORE THAN 1 MILLION A YEAR OR SUBSTANTIALLY MORE THAN HIS OWN 1992 BASE SALARY OF 765554 HE HAS ASSURED HIS NEW MOVIE EXECUTIVES THAT THEY WILL GET COMPLETE CREATIVE CONTROL THERE'S NOTHING WORSE THAN BUYING A BUSINESS BUILT ON CREATIVITY AND TAKING THAT CREATIVITY AWAY FROM THEM THAT WOULD BE DUMB MR TURNER SAYS THAT ARRANGEMENT COULD PROVE NETTLESOME DOWN THE ROAD MR TURNER'S MOVIE BUDGET WILL BE SUBJECT TO BOARD APPROVAL AND HE WILL DIVVY IT UP AMONG THE THREE STUDIOS WHO WILL HAVE ULTIMATE SAY IN HOW TO SPEND IT THE TURNER BOARD WHICH KEEPS A CLOSE EYE ON COSTS ISN'T LIKELY TO TOLERATE BIG OVERRUNS AND THAT COULD LIMIT THE STUDIOS' FREEDOM TO TAKE RISKS AND SOME INDUSTRY EXPERTS WONDER JUST HOW FAR BOARD MEMBER TIME WARNER IS WILLING TO GO IN LETTING MR TURNER CREATE A MOTIONPICTURE COMPETITOR TIME WARNER PARENT OF WARNER BROS STUDIO WILL VOTE ALONG WITH THE OTHER DIRECTORS ON TURNER BROADCASTING'S ANNUAL FILMMAKING BUDGETS AND COULD EFFECTIVELY KEEP MR TURNER'S MOVIE AMBITIONS IN CHECK MR TURNER INSISTS THAT WON'T BE A PROBLEM AS DIRECTORS OF TURNER BROADCASTING HE SAYS TIME WARNER CAN'T DO THINGS THAT ARE NOT IN THE BEST INTERESTS OF THIS CORPORATION MOREOVER MR TURNER WHO WAS SO FRUSTRATED BY HIS BOARD ALLIANCES A YEAR AGO NOW SEEMS QUITE RESIGNED TO THEM I REALLY DO LIKE THE COLLABORATIVE MODEL RATHER THAN THE DOMINATOR MODEL HE SAYS YOU ARE NEVER GOING TO CONQUER THE WORLD CONQUEST IS OUT PEOPLE DON'T WANT TO BE DOMINATED SEE RELATED ARTICLE TED ROGERS' BID WOULD FORTIFY CABLE EMPIRE WSJ FEB 4 1994 9402040134 940204 WHO'S NEWS ATLANTIC SOUTHEAST AIRLINES INC ATLANTIC SOUTHEAST AIRLINES INC ATLANTA GEORGE F PICKETT JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS REGIONAL AIR CARRIER WAS NAMED CHAIRMAN MR PICKETT 52 YEARS OLD SUCCEEDS ALAN VOORHEES 72 WHO WILL CONTINUE TO SERVE AS A BOARD MEMBER JOHN W BEISER 53 A SENIOR VICE PRESIDENT WILL SUCCEED MR PICKETT AS PRESIDENT 9402040133 940204 ADB CRITICIZES ITSELF PROMISES NEW INITIATIVES ASIAN DEVELOPMENT BANK SAYS APPROVAL CULTURE' STRESSED LOAN TARGETS BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA THE ASIAN DEVELOPMENT BANK IN AN UNUSUALLY BLUNT BOUT OF SELFCRITICISM ACKNOWLEDGED THAT IT HAS BEEN MORE CONCERNED WITH MEETING LENDING TARGETS THAN WITH THE BENEFITS OF THE PROJECTS IT HAS FUNDED AND IT PROMISED TO DO BETTER IN THE FUTURE HOWEVER PLANNED CHANGES MAY COST MORE MONEY AND COULD SLOW THE PACE AT WHICH THE BANK'S DEVELOPMENT LENDING HAS BEEN GROWING IN RECENT YEARS THE BANK'S SELFSCRUTINY CONTAINED IN AN INTERNAL REPORT RELEASED YESTERDAY FOLLOWS CALLS BY DONOR COUNTRIES NOTABLY THE US FOR THE MULTILATERAL LENDING AGENCY TO TAKE A HARDER LOOK AT WHERE ITS MONEY IS GOING MANY DELEGATES POINTED OUT THE NEED FOR THIS KIND OF EXERCISE SAID ADB PRESIDENT MITSUO SATO THE 56PAGE REPORT WHICH NOTES THAT ABOUT A FIFTH OF THE BANK'S PROJECTS ARE HAVING SOME TROUBLE SUGGESTS A ONETIME SPRING CLEANING OF INACTIVE OR SLOWMOVING PROJECTS THE REPORT BLAMES THE BANK'S APPROVAL CULTURE THE DESIRE TO MEET PROGRAMMED LENDING TARGETS FOR BOTH SPEEDING UP THE PROCESSING OF LOANS AT THE EXPENSE OF PROJECT DESIGN AND FOR INSUFFICIENT CONSIDERATION OF LOCAL NEEDS DEMANDS AND ABSORBTIVE CAPACITIES FOR EXAMPLE THE REPORT SAYS LOAN FACTFINDING MISSIONS SOMETIMES START EVEN BEFORE PROJECT FEASIBILITY STUDIES ARE COMPLETED ANOTHER CONSEQUENCE OF THE APPROVAL CULTURE IS THAT PROJECT IMPLEMENTATION DOESN'T GET AS MUCH ATTENTION AS DO PREPARATION AND LOAN APPROVALS THE REPORT SAYS CHANGING THE BANK'S INSTITUTIONAL MINDSET WON'T BE EASY HOWEVER JUST PREACHING IT IS NOT ENOUGH MR SATO TOLD REPORTERS PLEDGING VERY DEEP CHANGES IN THE BANK'S CORPORATE CULTURE AND PROCEDURES AND MORE DIVERSIFICATION IN ITS STAFF AS A START HE PLANS TO PUT PROJECTADMINISTRATION ON AN EQUAL FOOTING WITH PROJECTPROCESSING TO OFFER INCENTIVES FOR CHANGE TO THE BANK'S EMPLOYEES THE REPORT ALSO ADVOCATES DECENTRALIZING BANK OPERATIONS FOR GREATER FLEXIBILITY AND INITIATIVE SUGGESTS MORE REGULAR REVIEWS OF PROJECTS AND RECOMMENDS INCORPORATING THE FEEDBACK OBTAINED FROM PAST PROJECTS MOREOVER THE REPORT SAYS LOAN RECIPIENTS OUGHT TO BE MORE INVOLVED IN PROJECTS WE MIGHT HAVE BEEN TOO PATERNALISTIC TO MEMBER COUNTRIES SAID MR SATO WE MIGHT HAVE BEEN SPOILING THEM IF ACCEPTED THE RECOMMENDATIONS WOULD SLOW DOWN THE PROCESSING OF LOANS WHILE MR SATO SAID HE DOESN'T EXPECT ANY DECLINE IN THE BANK'S LENDING LENDING GROWTH COULD DIMINISH FROM THE 7 TO 8 PACE OF THE PAST FEW YEARS THE CHANGES MAY ALSO COST MONEY ALTHOUGH JUST HOW MUCH ISN'T YET CLEAR THERE WILL BE PRODUCTIVITY GAINS AND SOME RESOURCE SAVINGS AS A RESULT OF THE IMPLEMENTATION OF SOME OF THESE RECOMMENDATIONS BUT THE TRADEOFFS BETWEEN PROJECT QUALITY AND THE NEED FOR MORE RESOURCES WILL HAVE TO BE CLOSELY EXAMINED MR SATO SAID STILL THE REPORT WILL PROBABLY HELP CLEAR THE WAY FOR A CAPITAL INCREASE THAT WAS PROPOSED BY THE BANK LAST YEAR BUT WAS STYMIED BY US FOOTDRAGGING MR SATO SAID HE IS CONFIDENT OF SECURING APPROVAL TO ROUGHLY DOUBLE THE BANK'S AUTHORIZED SHARE CAPITAL TO 46 BILLION BANK OFFICIALS SAID THEY WOULD HAVE TO DRASTICALLY CUT BACK ON LENDING IF THE INCREASE ISN'T APPROVED THE BANK'S SHAREHOLDER COUNTRIES WERE ASKED TO CONTRIBUTE A TOTAL OF ABOUT 115 BILLION OR LESS WITH THE REST OF THE INCREASED CAPITAL IN CALLABLE EQUITY WHICH COULD BE SOLICITED BY THE BANK IN AN EMERGENCY WITH ABOUT A 16 STAKE EACH THE US AND JAPAN ARE THE BANK'S BIGGEST SHAREHOLDERS 9402040132 940204 GOLDMAN SETTLES SEC CASE CLAIMING TAXLINKED TRADES BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION CHARGED GOLDMAN SACHS & CO WITH VIOLATING SECURITIES LAW IN CONNECTION WITH A SERIES OF PREARRANGED TREASURY SECURITIES TRADES DESIGNED TO DEFER TAXES IN ITS ACTION YESTERDAY THE SEC CENSURED GOLDMAN SACHS AND FINED IT 250000 THE CIVIL PENALTIES WERE BASED ON RECORDKEEPING VIOLATIONS FOUND AFTER OCT 15 1990 THE EFFECTIVE DATE OF A LAW AUTHORIZING THE SEC TO LEVY CIVIL PENALTIES GOLDMAN SACHS WAS ORDERED TO CEASE AND DESIST FROM FUTURE VIOLATIONS AND TO INSTITUTE INTERNAL PROCEDURES WITHIN 90 DAYS DESIGNED TO ASSURE COMPLIANCE WITH THE LAW GOLDMAN SACHS SETTLED THE SEC'S COMPLAINT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS A STATEMENT BY THE FIRM'S MANAGEMENT COMMITTEE SAID THE COMPANY COOPERATED FULLY WITH THE SEC'S INVESTIGATION AND THAT THE INTERNAL CONTROLS ORDERED BY THE AGENCY ARE BEING IMPLEMENTED THE SEC ALLEGED THAT GOLDMAN SACHS BROKE RECORDKEEPING RULES BY FALSELY RECORDING 15 TRADES IN THE 1980S AS BONA FIDE TRANSACTIONS IN WHICH THE OWNERSHIP OF SECURITIES CHANGED HANDS WHEN IN FACT NO CHANGE IN OWNERSHIP OCCURRED IT ALSO CHARGED THE FIRM WITH BOOKSANDRECORDS VIOLATIONS UNRELATED TO THE SOCALLED TAX TRADES WHICH WERE AIMED AT SHOWING LOSSES FOR TAX PURPOSES ACCORDING TO AN SEC ADMINISTRATIVE COMPLAINT FILED YESTERDAY THE AGENCY CHARGED GOLDMAN SACHS WITH FAILING TO PROPERLY SUPERVISE THOSE RESPONSIBLE FOR THE TRADES NO INDIVIDUALS WERE NAMED IN THE COMPLAINT AND NO FURTHER SEC ACTION IS EXPECTED IN THE CASE SPOKESMEN FOR GOLDMAN SACHS AND SALOMON BROTHERS INC WITH WHOM GOLDMAN SACHS CONDUCTED SOME OF THE TRADES BOTH DECLINED TO COMMENT ON WHETHER THEY HAVE HAD ANY CONTACT WITH THE INTERNAL REVENUE SERVICE REGARDING THEIR TAX TRADES THE IRS ALSO DECLINED TO COMMENT THE ALLEGED VIOLATIONS TRIGGERING THE 250000 PENALTY WEREN'T RELATED TO THE SUPPOSED TAX TRADES BUT INSTEAD FLOWED FROM WHAT THE SEC DEPICTED AS SLIPSHOD RECORDKEEPING PRACTICES IN GOLDMAN'S GOVERNMENT SECURITIES OPERATIONS AFTER ENACTMENT OF THE CIVILPENALTIES LAW IN THE PAST AND AS RECENTLY AS AUGUST 1991 GOLDMAN GOVERNMENTSECURITIES TRADERS AND SALES REPRESENTATIVES DID NOT MAKE RECORDS OF CUSTOMER ORDERS THEY RECEIVED THE AGENCY SAID THE SEC SAID THE PREARRANGED NATURE OF THE TAX TRADES ELIMINATED MARKET RISK IT SAID GOLDMAN WAS ABLE TO REALIZE LOSSES TOTALING 366 MILLION FROM THESE TRADES WHICH ALLOWED THE FIRM TO DEFER CERTAIN TAX OBLIGATIONS JOSEPH GOLDSTEIN AN ASSOCIATE SEC ENFORCEMENT DIRECTOR SAID THAT TRADING FOR TAXMOTIVATED PURPOSES CAN BE QUITE LEGITIMATE WHAT ISN'T LEGITIMATE HE SAID IS TO RECORD TRADES AS BONA FIDE ATRISK TRANSACTIONS WHEN THAT ISN'T THE CASE 9402040131 940204 US WEIGHS NEW RULE FOR ANTILOCK BRAKES DETROIT THE FEDERAL GOVERNMENT IS CONSIDERING MAKING ANTILOCK BRAKES MANDATORY BUT THE AUTO INDUSTRY SAYS NO MANDATE IS NEEDED BECAUSE CONSUMERS ARE DEMANDING THE SOPHISTICATED BRAKES THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IS ASKING FOR PUBLIC COMMENT ON A POSSIBLE RULE THAT WOULD REQUIRE ANTILOCK BRAKES ON ALL CARS AND TRUCKS THE REQUEST FOR COMMENT BY MARCH 7 STARTS A LENGTHY RULEMAKING AND REVIEW PROCESS WE'RE NOT SURE IT SHOULD BE MANDATED SINCE WE'RE DOING IT ANYWAY SAID ROBERT MUNSON EXECUTIVE DIRECTOR OF AUTOMOTIVE SAFETY AND ENGINEERING STANDARDS AT FORD MOTOR CO ABOUT 42 OF USBUILT CARS WERE SOLD WITH ANTILOCK BRAKES IN THE 1993 MODEL YEAR UP FROM 32 THE PREVIOUS YEAR ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE JOURNAL MOST VEHICLES SOLD IN THE US HAVE ANTILOCK BRAKES EITHER STANDARD OR AVAILABLE AS AN OPTION THE AGENCY'S MOVE TOWARD INCREASING ANTILOCK BRAKE USE COMES ONLY A WEEK AFTER AN INSURANCE GROUP RELEASED A STUDY SHOWING THAT ANTILOCK BRAKES DON'T DO MUCH TO REDUCE CLAIMS IN ACCIDENTS MOST CONSUMERS LIKE THE ADDED CONTROL THE BRAKES GIVE ON ICE ACCORDING TO FORD 90 OF CONSUMERS WITH ANTILOCK BRAKES AND 70 OF THOSE WITHOUT ANTILOCK BRAKES WOULD LIKE THE EQUIPMENT ON THEIR NEXT VEHICLE THEY ADD ABOUT 565 TO THE COST OF A FORD TAURUS 9402040130 940204 WHO'S NEWS PAINEWEBBER PLANS STREAMLINING MOVE SLATES STOCK SPLIT BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC IS EXPECTED TO ANNOUNCE TODAY A TOPLEVEL REORGANIZATION DESIGNED TO POSITION THE RETAIL BROKERAGE COMPANY FOR A BIG PUSH FOR NEW BUSINESS THE MANAGEMENT SHAKEUP FOLLOWS A 3FOR2 STOCK SPLIT DECLARED YESTERDAY THE FIRM ALSO BOOSTED ITS QUARTERLY DIVIDEND TO 12 CENTS A SHARE PREVIOUSLY IT HAD PAID A QUARTERLY OF 15 CENTS WHICH IS EQUAL TO 10 CENTS A SHARE ON A POSTSPLIT BASIS PAINEWEBBER SHARES SLID DESPITE NEWS OF THE SPLIT AND THE DIVIDEND BOOST EASING TO 27875 DOWN 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SHAKEUP ANNOUNCED IN AN INTERNAL COMPANY MEMO STREAMLINES THE COMPANY INTO FOUR REGIONAL DIVISIONS IT ELEVATES JOSEPH GRANO PAINEWEBBER'S 45YEAROLD PRESIDENT OF RETAIL SALES AND MARKETING AND LEE FENSTERSTOCK 45 DIRECTOR OF CAPITAL MARKETS TO TOP MANAGEMENT THEY WILL JOIN THE FIRM'S CHAIRMAN DONALD MARRON AND ITS PRESIDENT PAUL GUENTHER ON A FOURPERSON EXECUTIVE COMMITTEE THE FIRM ALSO ANNOUNCED A SERIES OF PROMOTIONS MOST OF WHICH WENT TO EXECUTIVES ON ITS SALES SIDE OR WHO HAD BEEN INVOLVED IN THE DESIGN AND IMPLEMENTATION OF A NEW COMPUTER SYSTEM DESIGNED TO BOOST BROKER PRODUCTIVITY THE GOAL OF THE MANAGEMENT CHANGES PAINEWEBBER OFFICIALS SAID IS TO STRENGTHEN LINKS BETWEEN THE PRODUCT SIDE OF THE BUSINESS AND THE RETAIL SIDE AND BOOST SALES ROBERT SILVER WHO HEADED THE RETAIL BRANCH NETWORK BECOMES CHIEF OF MARKETING AND FRANK MINARD CHAIRMAN OF THE MITCHELL HUTCHINS ASSET MANAGEMENT DIVISION THAT OVERSEES PAINEWEBBER'S MUTUAL FUNDS WILL NOW REPORT TO THE HEAD OF RETAIL SALES MR GRANO THE REORGANIZATION COMES AS THE FIRM ROLLS OUT AT ITS BRANCH OFFICES A 100 MILLION COMPUTER DATABASE AND BROKER OVERSIGHT SYSTEM THE SYSTEM CALLED WINDOW OF OPPORTUNITY FLAGS A BROKER WHEN A PARTICULAR STOCK HAS DROPPED LISTS ANY AVAILABLE PAINEWEBBER RESEARCH REPORTS ON THE STOCK DISPLAYS THE NAMES AND PHONE NUMBERS OF ANY BRANCH CLIENTS WHO OWN THE STOCK AND DISPLAYS SUGGESTED ALTERNATIVE INVESTMENTS ROBERT BENMOSCHE DESIGNER OF THE COMPUTER SYSTEM AND THE FIRM'S HEAD OF SYSTEMS AND OPERATIONS HAS BEEN PROMOTED TO SOUTHERN DIVISION MANAGER MARTEN HOEKSTRA MANAGER OF THE CHICAGO OFFICE WILL RUN THE NORTHEAST DIVISION MIKE DAVIS FORMERLY HEAD OF SOUTHERN PACIFIC BUSINESS BECOMES WESTERN DIVISION MANAGER CLARENCE CATALLO REMAINS NORTH CENTRAL DIVISION MANAGER THE FIRM ALSO CREATED AN 18MEMBER BOARD OF DIRECTORS FOR THE BROKERAGE UNIT AND NAMED REGINA DOLAN ITS PRINCIPAL FINANCIAL OFFICER TO THE ADDITIONAL POSITION OF CHIEF FINANCIAL OFFICER OF THE PARENT THE STOCK SPLIT IS PAYABLE MARCH 10 TO SHARES OF RECORD FEB 17 THE CASH DIVIDEND IS PAYABLE APRIL 18 TO SHARES OF RECORD MARCH 28 9402040129 940204 GOLDEN WEST OFFERS TO ADD A SECURITY TO AID CALFED BID BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL OAKLAND CALIF GOLDEN WEST FINANCIAL CORP SWEETENED ITS PROPOSED TAKEOVER BID FOR TROUBLED CALIFORNIA FEDERAL BANK OFFERING TO ADD A SPECULATIVE SECURITY THAT WOULD EQUAL THE DIFFERENCE IN THE TWO BANKS' VALUATION OF CALFED IN A LETTER TO CALFED'S BOARD GOLDEN WEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HERBERT M SANDLER PROPOSED THE ESTABLISHMENT OF RESERVES COVERING POSSIBLE ADDITIONAL LOSSES ON CALFED'S ASSETS MR SANDLER SAID GOLDEN WEST WOULD CONSULT WITH CALFED'S ADVISER FIRST BOSTON TO ESTABLISH THE RESERVES UNDER THE ACQUISITION OFFER CALFED HOLDERS WOULD RECEIVE A SECURITY REPRESENTING AN INTEREST IN THE RESERVES TO THE EXTENT THE ADDITIONAL RESERVES PROVE TO BE UNNECCESARY MR SANDLER SAID THEN HOLDERS OF THIS SECURITY WOULD RECEIVE THE VALUE OF THE RESERVE GOLDEN WEST ACKNOWLEDGED THE PROPOSAL WAS BASED ON A SIMILAR PROVISION INVENTED BY BANKAMERICA CORP DURING ITS SUCCESSFUL TAKEOVER OF SEAFIRST CORP A DECADE AGO THOSE SECURITIES DUBBED HOPE CERTIFICATES BY SKEPTICS IN THE FINANCIAL COMMUNITY PROVED NEARLY WORTHLESS TO SEAFIRST SHAREHOLDERS WHEN THE SEATTLEBASED BANK'S LOANS WERE EVALUATED BY OUTSIDE UMPIRES OVER THE FIVE YEARS AFTER THE SECURITIES WERE ISSUED MR SANDLER'S OFFER COMES ON TOP OF GOLDEN WEST'S CONDITIONAL 630 MILLION BID FOR CALFED LAST MONTH GOLDEN WEST SAID IT WOULD PAY 2150 A SHARE FOR CALFED'S 25 MILLION COMMON SHARES OUTSTANDING PLUS 90 MILLION FOR PREFERRED STOCK BUT WOULD DEDUCT POTENTIAL LOSSES UNCOVERED DURING GOLDEN'S REVIEW OF CALFED'S RECORDS SUCH AS ANY ADDITIONAL REALESTATE WRITEDOWNS CALFED'S BOARD REJECTED THE OFFER SAYING IT WASN'T ENOUGH AND DECLARING THE LOS ANGELESBASED THRIFT WAS NOT FOR SALE AT THIS TIME CALFED WITH 157 BILLION IN ASSETS HAS REPORTED CONTINUING LOSSES ALTHOUGH A SPOKESMAN SAID IT CUT ITS NONPERFORMING ASSETS BY 31 IN THE LAST QUARTER CALFED'S SPOKESMAN DECLINED TO COMMENT ON GOLDEN WEST'S SWEETENED BID OTHER THAN TO SAY THE THRIFT'S BOARD WOULD LOOK AT IT DURING ITS NEXT SCHEDULED MEETING FEB 18 SOME ANALYSTS CHEERED GOLDEN WEST'S NEW BID IT'S ABOUT AS FIRM AN OFFER AS THEY COULD COME UP WITH AT THIS STAGE SAID JOSEPH JOLSON OF MONTGOMERY SECURITIES IN SAN FRANCISCO MR JOLSON SAID THAT GIVEN CALFED'S SHAKY FINANCES THE THRIFT WOULD BE WISE TO ACCEPT THE PLAN PRIVATELY HOWEVER SEVERAL PEOPLE CONTACTED CALFED OFFICIALS AND LARGE SHAREHOLDERS IN THE THRIFT DISMISSED THE SCHEME AS TOO SPECULATIVE TO BE MEANINGFUL IF THEY WERE WILLING TO ISSUE GOLDEN WEST STOCK TO MAKE UP THE DIFFERENCE THAT MIGHT BE SOMETHING SAID ONE LARGE HOLDER WHO REQUESTED ANONYMITY I DON'T KNOW WHAT VALUE THIS SECURITY HAS I DON'T THINK IT WILL GET PAST THE BOARD GOLDEN WEST'S COMMON STOCK FELL 50 CENTS OR 11 TO CLOSE AT 44125 A SHARE WHILE CALFED'S FELL 125 CENTS OR 08 TO 14875 BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9402040128 940204 MUTUAL FUND ASSETS FOR MONEY MARKETS FALL TO 5937 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS TUMBLED 926 BILLION TO 5937 BILLION FROM A REVISED 60296 BILLION FOR THE WEEK ENDED WEDNESDAY FEB 2 THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 652 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 826 MILLION TO 40003 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 405 TAXABLE MONEY MARKET FUNDS INCREASED BY 5546 MILLION TO 310 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS INCREASED BY 2714 MILLION TO 9003 BILLION ASSETS OF THE 282 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 1009 BILLION TO 19367 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 228 TAXABLE MONEY MARKET FUNDS DROPPED BY 1022 BILLION TO 17084 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 1348 MILLION TO 2283 BILLION 9402040127 940204 WORLD MARKETS PRICES FALL IN TOKYO ON POLITICAL JITTERS TUMBLE IN LONDON FRANKFURT ON GERMAN RATE INACTION A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FELL THURSDAY AS INVESTORS WERE NERVOUS ABOUT THE STABILITY OF JAPAN'S GOVERNING COALITION WHICH IS DIVIDED ABOUT TAX PROPOSALS THE LONDON AND FRANKFURT MARKETS EACH TUMBLED ON DISAPPOINTMENT THAT GERMANY DIDN'T LOWER INTEREST RATES AND THAT THE GERMAN MONEY SUPPLY SURGED NEWS THAT ALSO PRESSURED PRICES ON OTHER EUROPEAN BOURSES BUT SYDNEY STOCKS ADVANCED 11 TO A RECORD WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11827 DOWN 075 REFLECTING LOWER MARKETS IN ALL REGIONS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10879 UP 215 OR 2 WITH CYPRUS AMAX MINERALS OF THE US POSTING A 4 GAIN IN ITS LOCAL CURRENCY COMMUNICATIONS WITH AT&T STOCKS TRAILED AT 14585 DOWN 357 OR 24 WITH OKI ELECTRIC INDUSTRY OF JAPAN SLIDING 32 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 16631 POINTS WEDNESDAY FELL 7521 TO 2017482 IN TRADING ON FRIDAY THE NIKKEI INDEX ROSE 2570 POINTS TO CLOSE THE MORNING SESSION AT 2020052 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES DOWN FROM 6695 MILLION SHARES A DAY EARLIER DECLINERS OUTNUMBERED ADVANCERS 808257 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1544 POINTS WEDNESDAY DROPPED 1493 TO 161273 SOME ENTHUSIASM ABOUT THE JAPANESE GOVERNMENT'S UNVEILING OF LONGAWAITED STIMULATIVE TAX POLICIES WANED WHEN THE SOCIAL DEMOCRATIC PARTY INDICATED ITS OPPOSITION TO THE PROPOSALS MIGHT RESULT IN THE PARTY'S WITHDRAWAL FROM THE COALITION THE TAX MEASURES WERE LARGELY IN LINE WITH MARKET EXPECTATIONS LEAVING INVESTORS WITH LITTLE REASON TO PUSH SHARES HIGHER FOLLOWING SHARP GAINS EARLIER THIS WEEK THE SOCIAL DEMOCRATS' INTRANSIGENCE CAUSED MANY JAPANESE TO BE LEERY ABOUT THE GOVERNMENT'S FUTURE AND THEY SOLD STOCKS THE NIKKEI JUMPED AT THE OPENING BECAUSE OF THE TAX PROPOSALS BUT DRIFTED LOWER UNTIL MIDAFTERNOON WHEN BUYERS MOVED IN A LATE BURST OF FUTURESDRIVEN BUYING PUSHED THE BENCHMARK INDEX BACK UP IN THE FINAL MINUTES FOREIGN INVESTORS CONTINUED TO BUY SHARES BUT AT A SLOWER PACE ALSO CONTRIBUTING TO THE MARKET'S JITTERS WERE THE JAPANESE YEN'S CONTINUED STRENGTH AGAINST THE US DOLLAR AND AN APPARENT LACK OF PROGRESS IN USJAPAN TRADE TALKS AHEAD OF NEXT FRIDAY'S MEETING BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND US PRESIDENT BILL CLINTON IN LONDON AFTER SETTING A NEW HIGH WEDNESDAY THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 288 POINTS TO 34915 THE FT 30STOCK INDEX DROPPED 196 POINTS TO 26940 VOLUME WAS 109 BILLION SHARES COMPARED WITH 108 BILLION SHARES A DAY EARLIER AFTER AN OPENING SURGE THAT TOOK THE FT 100 UP 19 POINTS SENTIMENT WAS BATTERED ON NEWS THAT GERMANY'S MONEY SUPPLY ROSE LAST YEAR MUCH MORE THAN EXPECTED FANNING INFLATION FEARS AND INDICATING THE GERMAN BUNDESBANK THE CENTRAL BANK WILL BE SLOW TO LOWER INTEREST RATES WHICH COULD FAN PRESSURE ON CONSUMER PRICES FURTHER THEN AT MIDDAY THE BUNDESBANK SAID IT WASN'T CHANGING ITS KEY RATES DEALING ANOTHER BLOW TO THE LONDON BOURSE WHICH HOPES FOR A TANDEM BRITISH LENDINGRATE CUT TO BOOST ECONOMIC RECOVERY IN FRANKFURT THE DAX 30STOCK INDEX WHICH HAD GAINED FOR FIVE CONSECUTIVE SESSIONS SANK 3229 POINTS OR 15 TO 215172 ALSO THE INTRADAY LOW AFTER TRADING AS HIGH AS 218788 PRICES ALREADY UNDER PRESSURE FROM SOME PROFITTAKING AND DISSATISFACTION WITH THE UNEXPECTEDLY HIGH EXPANSION OF GERMANY'S MONEY SUPPLY DIVED ON THE BUNDESBANK'S INACTION ON INTEREST RATES THOUGH MOST INVESTORS HADN'T EXPECTED THE CENTRAL BANK TO CUT ITS RATES SOME HAD BET OTHERWISE IN PARIS AFTER SCORING A RECORD HIGH THE DAY BEFORE SHARES FELL ACROSS THE BOARD IN HEAVY TRADING ON DISAPPOINTMENT THAT GERMAN MONETARY POLICY WASN'T EASED A PALL ALSO FELL OVER THE MARKET BECAUSE OF A PLUNGE IN FRENCH BOND PRICES AND FISHERMEN'S VIOLENT PROTESTS AGAINST INEXPENSIVE IMPORTS IN MILAN SHARES ENDED LOWER AFTER PROFITTAKING CHIPPED AWAY AT EARLY GAINS AIDED BY MORE BUYING BY FOREIGN INVESTORS IN MADRID EQUITIES SLIPPED DAMPED BY THE LACK OF A RATE REDUCTION IN GERMANY IN STOCKHOLM PROFITTAKING ALSO WAS TOUCHED OFF BY WEAKNESS IN OTHER MAJOR MARKETS AND HIGHER BOND AND MONEYMARKET YIELDS AND STOCKS ENDED AT THE DAY'S LOWS IN ZURICH SHARE PRICES FELL AFTER THE GERMAN MONEYSUPPLY FIGURES CAME IN HIGHER THAN ANTICIPATED IN MEXICO CITY EQUITIES ROSE 14 TO A RECORD ON CONFIDENCE ABOUT STRONG EARNINGS IN THE TELECOMMUNICATIONS SECTOR WHICH WOULD INDICATE AN ECONOMIC TURNAROUND HAD BEGUN IN THE FOURTH QUARTER IN SYDNEY STOCKS WERE PROPELLED TO NEW HIGHS BY STRONGER COMMODITY PRICES INCLUDING OIL SOLID CORPORATE EARNINGS AND STRONG BUYING BY FOREIGN INVESTORS IN HONG KONG DESPITE RELATIVELY UNEVENTFUL TRADING SHARES REBOUNDED MORE THAN RECOUPING THE PREVIOUS SESSION'S LOSSES AS PARTICIPANTS CONTINUED TO HOPE FOR A CHINESE NEW YEAR RALLY THE HOLIDAY IS NEXT THURSDAY IN SINGAPORE PRICES CLIMBED ALMOST 1 IN SUBDUED ACTIVITY AS DEALINGS CONTINUED TO BE TECHNICALLY DRIVEN IN TAIPEI SHARES JUMPED 16 IN HEAVY TRADING EVEN AFTER PROFITTAKERS CLIPPED HUGE EARLIER GAINS IN THE FINAL HALFHOUR FINANCIAL ISSUES DOMINATED DEALINGS SURGING 43 WHILE OTHER SECTORS ENDED MIXED BULLISHNESS IN THE TAIPEI MARKET WHICH HAS POSTED GAINS IN SIX OF THE PAST SEVEN SESSIONS WAS SUSTAINED BY MORE REPORTS THAT THE TAIWAN GOVERNMENT WILL RAISE THE LIMIT ON FOREIGN INVESTMENT IN STOCKS IN MANILA SHARES GAINED ON NEWS THAT THE PHILIPPINE GROSS NATIONAL PRODUCT GREW 23 LAST YEAR IN WELLINGTON STOCKS ROSE STRONGLY IN HEAVY TRADING LED BY FORESTRY ISSUES BUT IN SEOUL PRICES TUMBLED 2 HURT BY THE THIRD SET OF MEASURES ANNOUNCED WEDNESDAY NIGHT BY THE SOUTH KOREAN GOVERNMENT TO CURB SPECULATIVE DEMAND FOR STOCKS WITH CASH ABUNDANT THE MARKET ATTEMPTED AN UPTURN AT MIDDAY BUT THIS FIZZLED UNDER THE WEIGHT OF THE MEASURES TO PREVENT OVERHEATING HIGHPRICED BLUE CHIPS AND CONSTRUCTION SHARES WERE HIT HARDEST THOUGH MEDIUMPRICED BLUE CHIPS AND SOME SMALL ISSUES ENDED HIGHER AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM KLM ROYAL DUTCH AIRLINES FINISHED AT 4820 GUILDERS 2482 OFF 80 CENTS PULLED DOWN BY THE WEAKER MARKET THOUGH THE CARRIER POSTED THIRDQUARTER PROFIT OF 15 MILLION GUILDERS 77 MILLION COMPARED WITH A YEAREARLIER LOSS OF 437 MILLION GUILDERS AND UNVEILED AN ISSUE OF 20 MILLION COMMON SHARES FOR MARCH IN SYDNEY NEWS CORP SOARED 52 CENTS OR 52 TO 1056 AUSTRALIAN DOLLARS US756 ON HIGHERTHANEXPECTED EARNINGS FOR THE FIRST HALF ENDED DEC 31 PROFIT JUMPED 70 TO A7689 MILLION US5501 MILLION FROM A YEAR EARLIER 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 9402040126 940204 PHILIPPINE AIR'S ATTENDANTS PLAN STRIKE NEXT WEEK BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL THE PHILIPPINES ONE OF ASIA'S FASTESTGROWING TRAVEL MARKETS MAY BE OUT OF REACH FOR THOUSANDS OF TOURISTS DURING ITS BUSIEST HOLIDAY SEASON OF THE YEAR FLIGHT ATTENDANTS AT PHILIPPINE AIRLINES HAVE THREATENED TO STRIKE NEXT WEEK UNLESS THEIR DEMANDS FOR BETTER WORKING CONDITIONS ARE MET THE WALKOUT WOULD COINCIDE WITH LUNAR NEW YEAR CELEBRATIONS AND DAMP TOURISM IN A COUNTRY STRUGGLING TO REESTABLISH ITSELF AS A PRIME TRAVEL DESTINATION LEADERS OF THE FLIGHT ATTENDANTS AND STEWARDS ASSOCIATION OF THE PHILIPPINES SAID AT A NEWS CONFERENCE IN MANILA ON WEDNESDAY THAT AN OVERWHELMING NUMBER OF PAL'S 1814 FLIGHT ATTENDANTS HAD VOTED FOR A STOPPAGE THE PILOTS UNION AND THE GROUND EMPLOYEES ASSOCIATION SAID THEY BACKED THE FLIGHT ATTENDANTS PAL SAID IT WAS SADDENED BY THE ANNOUNCEMENT BUT ADDED THAT AIRLINE EXECUTIVES WOULD MEET WITH UNION REPRESENTATIVES AGAIN IN AN ATTEMPT TO AVERT A STOPPAGE A COMPANY SPOKESWOMAN SAID THE DEPARTMENT OF LABOR WILL MEDIATE THE DISPUTE DATES TO DECEMBER WHEN THE AIRLINE LAUNCHED NONSTOP FLIGHTS BETWEEN MANILA AND LOS ANGELES REQUIRING ITS STAFF TO WORK BEYOND AN AGREEDUPON LIMIT OF 14 HOURS AT A STRETCH PAL SUSPENDED 71 FLIGHT ATTENDANTS WHO REFUSED TO FLY THE LONGHAUL FLIGHT LAST MONTH BUT ABOUT 20 HAVE RETURNED A UNION SPOKESWOMAN SAID THE FLIGHT ATTENDANTS UNION IS ALSO DEMANDING WAGES MORE IN LINE WITH THOSE PAID BY OTHER ASIAN CARRIERS A UNION SPOKESWOMAN SAID THAT THE STARTING MONTHLY SALARY FOR A PAL FLIGHT ATTENDANT IS ABOUT 260 COMPARED WITH ABOUT 1000 FOR A RECRUIT AT HONG KONGBASED CATHAY PACIFIC AIRWAYS A STRIKE WOULD CRIPPLE PAL AND HURT TOURISM IN THE PHILIPPINES DURING THE PEAK SEASON FOR VISITS FROM NEIGHBORING COUNTRIES AFTER A LONG DRY SPELL THE RETURN OF POLITICAL STABILITY HELPED BOOST TOURIST ARRIVALS LAST YEAR TO A RECORD 14 MILLION UP ABOUT 20 FROM 1992 THIS YEAR THE DEPARTMENT OF TOURISM IS AIMING FOR A 15 GAIN TO 16 MILLION PEOPLE WHO HAD SHIED AWAY BECAUSE OF NATIONAL CALAMITIES AND POLITICAL UNCERTAINTIES WERE STARTING TO VISIT SAID JAMES KAPLAN MANAGING DIRECTOR OF KAPLAN CONSULTANCY WHICH SPECIALIZES IN EMERGING TOURISM MARKETS A STRIKE IS THE KIND OF THING THAT WILL TURN SOME PEOPLE OFF DURING JANUARY 1993 IN WHICH LAST YEAR'S LUNAR NEW YEAR FELL ABOUT 62000 EAST ASIANS VISITED THE COUNTRY COMPARED WITH 30000 TO 40000 IN OTHER MONTHS ACCORDING TO OFFICIAL FIGURES ABOUT HALF OF THE VISITORS ARRIVED ON PAL FLIGHTS NEWS OF A POSSIBLE WALKOUT SENT PEOPLE BOOKED ON PAL SCURRYING TO FIND SEATS ON OTHER CARRIERS I CAN'T GET A SEAT ON ANY FLIGHT OUT OF HERE WAILED LUZ LORENZO A SENIOR ECONOMIST AT PEREGRINE BROKERAGE LTD IN HONG KONG WHO IS BOOKED ON A PAL FLIGHT TO MANILA NEXT WEDNESDAY IT LOOKS LIKE I MIGHT GET STUCK HERE FOR MANY TRAVELERS IT BRINGS BACK BAD MEMORIES OF LAST YEAR'S LUNAR NEW YEAR WHEN CATHAY'S 3800MEMBER FLIGHT ATTENDANTS UNION LAUNCHED A 17DAY STRIKE THEY'RE TAKING THEIR CUE FROM CATHAY PACIFIC SAID JIM ECKES DIRECTOR OF INDOSWISS AVIATION A REGIONAL AIRLINE CONSULTANCY THEY'RE PICKING THE OPTIMUM TIME TO TRY AND SQUEEZE THE MOST OUT OF THE AIRLINE 9402040125 940204 BRITISH COURT GRANTS 89 MILLION JUDGMENT AGAINST ANTAR TO SEC WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID IT OBTAINED AN 89 MILLION JUDGMENT IN BRITISH COURT AGAINST EDDIE ANTAR FOUNDER OF THE NOWDEFUNCT CRAZY EDDIE INC CONSUMER ELECTRONICS CHAIN THE JUDGMENT WILL ALLOW THE SEC TO ATTEMPT TO COLLECT MONEY FROM MR ANTAR'S HOLDINGS IN BRITAIN ACCORDING TO SEC LAWYER RICHARD WALLACE THE SEC ALLEGING FEDERAL SECURITIES VIOLATIONS OBTAINED A 735 MILLION JUDGMENT AGAINST MR ANTAR IN THE US IN JULY 1990 WITH INTEREST THE JUDGMENT NOW TOTALS 89 MILLION HOWEVER IT WASN'T ENFORCEABLE WITHOUT FOREIGN COURT ORDERS MR ANTAR WHO WAS EXTRADITED FROM ISRAEL ABOUT A YEAR AGO WAS CONVICTED IN THE US OF STOCK FRAUD AND RACKETEERING FOR INFLATING CRAZY EDDIE'S MARKET VALUE THROUGH PHONY SALES AND INVENTORY REPORTS NOW IN FEDERAL PRISON HE CONTINUES TO FIGHT CIVIL CASES PENDING AGAINST HIM IN BRITAIN ISRAEL AND SWITZERLAND THE SEC SAID MR ANTAR IS APPEALING THE BRITISH COURT'S JUDGMENT THAT WAS ENTERED LAST WEEK 9402040124 940204 ABELA SEEKS TO BLOCK OLYMPIC AIRWAYS' BID FOR DEBT WRITEOFF A WALL STREET JOURNAL NEWS ROUNDUP PARIS BASED CATERING GROUP ABELA CORP LODGED A FORMAL COMPLAINT WITH THE EUROPEAN UNION COMMISSION ON WEDNESDAY AGAINST OLYMPIC AIRWAYS OF GREECE TO BLOCK THE AIRLINE'S APPLICATION FOR A 12 BILLION DEBT WRITEOFF ABELA ACCUSED OLYMPIC OF VIOLATING SEVERAL EU LAWS BY BREAKING CONTRACTS THAT WOULD HAVE GIVEN ABELA A MAJORITY STAKE IN THE GREEK AIRLINE'S CATERING UNIT THE MOVE FOLLOWS AN ANNOUNCEMENT IN JANUARY BY ABELA OF ITS PLAN TO FILE A LAWSUIT IN A GREEK COURT SEEKING AS MUCH AS 25 MILLION IN DAMAGES FROM OLYMPIC AND A FURTHER ACTION IN GENEVA CLAIMING AS MUCH AS 75 MILLION ABELA CLAIMS THAT THE AIRLINE BROKE A 1991 AGREEMENT UNDER WHICH IT BOUGHT 49 OF OLYMPIC CATERING FOR 14 MILLION UNDER THAT DEAL ABELA WAS EVENTUALLY TO TAKE AN ADDITIONAL 17 THROUGH AN OPTION BUT WHEN ABELA SOUGHT TO EXCERCISE THAT OPTION LAST SEPTEMBER AFTER RESTORING THE CATERING UNIT TO PROFITABILITY OLYMPIC REFUSED THE DEAL AND SOON AFTER DISMISSED SENIOR MANAGERS AND BOARD MEMBERS INSTALLED BY THE PARISIAN COMPANY WHAT WE ARE SAYING IS THAT THEY HAVE RENATIONALIZED THE COMPANY THROUGH THE BACK DOOR ALLEGED ALEXIS SACRE FORMERLY ABELA'S CHIEF REPRESENTATIVE AT OLYMPIC CATERING WE FEEL THE COMPANY TODAY IS WORTH AT LEAST 75 MILLION WE'LL BE BACKING IT UP WITH ACCOUNTS OR WHATEVER IT TAKES ON TUESDAY GREEK NEWSPAPERS PRINTED A MEMO SENT TO OLYMPIC EMPLOYEES IN WHICH THE AIRLINE MANAGEMENT SAID THAT ITS DEBTS WOULD SOON REACH ABOUT 530 BILLION DRACHMAS 213 BILLION AND THAT THE AIRLINE WOULD HAVE TO SHUT DOWN IF ITS REQUEST TO WRITE OFF ABOUT HALF THAT IS BLOCKED BY THE EU COMMISSION 9402040123 940204 MARKETING & MEDIA SPANISHLANGUAGE SPORTS CABLE TV PLANS TO LAUNCH A NATIONAL NETWORK BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A GAMBIT TO ATTRACT HISPANIC TELEVISION VIEWERS IN THE US A REGIONAL SPORTS NETWORK WILL LAUNCH THE FIRST NATIONAL SPANISHLANGUAGE SPORTSCABLE TV NETWORK IN LATE 1994 PRIME TICKET NETWORK WHICH IS MAJORITYOWNED BY CABLE PIONEER BILL DANIELS WILL UNVEIL PLANS NEXT WEEK FOR LA CADENA DEPORTIVA NACIONAL THE NATIONAL SPORTS NETWORK THE COMPANY IS TRYING TO CONVINCE CABLE OPERATORS IT CAN REPLICATE THE EARLY SUCCESS OF ITS REGIONAL SPANISHLANGUAGE NETWORK LA CADENA DEPORTIVA PRIME TICKET WHICH IT LAUNCHED IN THE FALL TO SOME 700000 HOMES IN SOUTHERN CALIFORNIA THE ADSUPPORTED NETWORK JOINS A GROWING LIST OF US PROGRAMMERS TRYING TO COURT THE NATION'S 24 MILLION HISPANICS GENERAL ELECTRIC CO'S NBC UNIT VIACOM INC'S MTV AND TIME WARNER'S HOME BOX OFFICE HAVE ALL STAKED CLAIMS ON THE US HISPANIC MARKET WITH SPANISHLANGUAGE VERSIONS OF THEIR SERVICES WE BELIEVE THE DEMAND IS THERE AND THE TIME IS RIGHT SAID ROGER WERNER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRIME TICKET AND FORMER PRESIDENT OF ESPN THE ENGLISH LANGUAGE NATIONAL SPORTSCABLE NETWORK MR WERNER IS PROMISING THE NEW SPANISHLANGUAGE NETWORK WHICH WILL TARGET MEN CAN DRAW NEW REVENUES TO CABLE OPERATORS WHICH ARE NOW FACING SLOW SUBSCRIBER GROWTH STRICT FEDERAL RATE REGULATIONS AND THE MASSIVE COST OF UPGRADING THEIR SYSTEMS HISPANICS MAKE UP NEARLY 10 OF THE US POPULATION THEIR NUMBERS ARE GROWING AT SEVEN TIMES THE NATIONAL AVERAGE AND THEY HAVE AN AGGREGATE BUYING POWER OF 206 BILLION ACCORDING TO THE US CENSUS BUREAU THE GROUP IS SPREAD OUT IN 65 MILLION HOMES CONCENTRATED IN CALIFORNIA TEXAS NEW YORK AND FLORIDA BUT MR WERNER SAYS THAT CABLE PENETRATION IN HISPANIC HOUSEHOLDS IS ONLY ABOUT 18 IN SOUTHERN CALIFORNIA COMPARED WITH OVER 55 FOR ANGLOAMERICANS AND NATIONAL FIGURES ARE COMPARABLE LA CADENA DEPORTIVA NACIONAL HAS ALREADY SECURED EXCLUSIVE US RIGHTS FOR MORE THAN 400 INTERNATIONAL SOCCER GAMES FROM MEXICO SPAIN ARGENTINA AND OTHER COUNTRIES AND IT WILL RUN OVER 1500 HOURS OF BOXING MATCHES AUTO RACING AND LIFESTYLE AND NEWS SHOWS BUT SOME WONDER IF THE NEW NETWORK HAS ENOUGH TOPRATED SPORTS PROGRAMMING TO BUILD AN AUDIENCE THEY DON'T HAVE ENOUGH PRODUCT TO INTEREST ENOUGH PEOPLE SAYS STEPHEN HAMMOND A SPOKESMAN FOR UNIVISION TELEVISION NETWORK UNIVISION THE LARGEST SPANISHLANGUAGE TV NETWORK REACHES OVER 90 OF US HISPANIC TV HOMES AND OWNS THE RIGHTS TO THE POPULAR 1994 WORLD CUP 9402040122 940204 LEGAL BEAT WHAT HAPPENS WHEN PATIENTS ARBITRATE RATHER THAN LITIGATE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ROBIN LOREY DIDN'T EVEN KNOW WHAT ARBITRATION WAS WHEN SHE AGREED TO WAIVE HER RIGHT TO A JURY TRIAL AS A MEMBER OF THE KAISER PERMANENTE HEALTH MAINTENANCE ORGANIZATION BUT LIKE MORE THAN FIVE MILLION OTHERS WHO BELONG TO THE COUNTRY'S BIGGEST HMO MS LOREY HAD NO CHOICE KAISER REQUIRES ALL OF ITS MEMBERS IN CALIFORNIA COLORADO HAWAII AND MASSACHUSETTS TO AGREE TO ARBITRATE MEDICAL MALPRACTICE CLAIMS AND OTHER DISPUTES RATHER THAN TAKE THEM TO COURT SO WHEN MS LOREY CLAIMED THAT A SPINAL PROCEDURE DONE DURING THE DELIVERY OF HER THIRD CHILD IN 1991 CAUSED BACK PROBLEMS SHE HAD TO TAKE HER CASE AGAINST KAISER NOT TO A JUDGE AND JURY BUT TO THREE PRIVATE ARBITRATORS SEATED IN A SMALL CONFERENCE ROOM AND WHEN THE ARBITRATORS LAST MONTH RULED AGAINST MS LOREY A 33YEAROLD NURSE FROM SUN CITY CALIF SHE HAD NO RIGHT TO APPEAL AS CONGRESS CONSIDERS A VARIETY OF MEDICAL MALPRACTICE REFORMS KAISER'S TRACK RECORD AND THE EXPERIENCE OF PEOPLE SUCH AS MS LOREY ARE CERTAIN TO COME UNDER SCRUTINY THAT RECORD SUGGESTS THAT LIKE ALMOST EVERY OTHER ISSUE IN THE HEALTHCARE DEBATE ARBITRATION INVOLVES SOME DIFFICULT TRADEOFFS KAISER HAS ASKED PATIENTS TO FORFEIT SOME OF THEIR RIGHTS BUT IN SO DOING IT HAS MANAGED BOTH TO CUT ITS LEGAL COSTS AND TO COMPENSATE A SIGNIFICANT PERCENTAGE OF INJURED PEOPLE MORE THAN A DOZEN STATES ALREADY HAVE PASSED LAWS MAKING IT EASIER FOR HEALTH PLANS TO USE ARBITRATION A METHOD THAT IS COMMON IN A VARIETY OF SECURITIES CONSTRUCTION AND CONTRACT DISPUTES CONSEQUENTLY A GROWING NUMBER OF HOSPITALS AND HMOS ARE ALLOWING THEIR PATIENTS TO CHOOSE ARBITRATION THOUGH VERY FEW REQUIRE THEM TO DO SO THE CLINTON HEALTH PLAN PROPOSES MORE USE OF MEDIATION AND ARBITRATION IN MEDICAL MALPRACTICE SUITS BUT WOULD GUARANTEE COURT APPEALS OF THE RESULTS SO FAR ONLY A PROPOSAL BY SEN PETE DOMENICI R NM WOULD MANDATE THAT MOST AMERICANS SUBMIT TO THE KIND OF BINDING ARBITRATION THAT KAISER REQUIRES THE KAISER APPROACH CERTAINLY DESERVES PRAISE FOR SPEEDY RESOLUTIONS THE CASES THE HMO ARBITRATES ARE TYPICALLY RESOLVED IN ABOUT 19 MONTHS COMPARED WITH AN AVERAGE OF 33 MONTHS FOR MALPRACTICE LAWSUITS HANDLED BY THE COURT SYSTEM ACCORDING TO A 1992 US GENERAL ACCOUNTING OFFICE REPORT BASED ON INFORMATION PROVIDED BY KAISER ARBITRATION REDUCES THE COST OF LITIGATION PRETTY SUBSTANTIALLY AND THEREFORE WE'RE ABLE TO OFFER OUR MEMBERS A BETTER DEAL IN TERMS OF THE COST OF CARE OVERALL SAYS TRISHA O'HANLON SENIOR COUNSEL FOR KAISER'S SOUTHERN CALIFORNIA REGION KAISER ALSO CREDITS ARBITRATION WITH COMPENSATING A LARGER PERCENTAGE OF INJURED PATIENTS THAN JURIES DO THOUGH USUALLY IN MORE MODEST AMOUNTS THE HMO ESTIMATES THAT PLAINTIFFS WIN ABOUT HALF ITS ARBITRATIONS COMPARED WITH ABOUT A THIRD OF ALL MALPRACTICE CASES IN THE COURT SYSTEM AND WITH ARBITRATION YOU DON'T HAVE 100 MILLION VERDICTS ON A BADBABY CASE SAYS MS O'HANLON KAISER DECLINED HOWEVER TO PROVIDE DATA ON THE SIZE OF THE AVERAGE ARBITRATION AWARD IT'S TYPICALLY FASTER THAN A TRIAL BECAUSE IT'S LESS FORMALIZED SAYS PAUL WEILER A HARVARD LAW SCHOOL MALPRACTICE SPECIALIST THERE IS AN EXPERT WHO'S MAKING THE DECISION WHICH WILL GIVE YOU MORE PREDICTABLE AND MORE RATIONAL RESULTS BUT MANY PATIENTS SUCH AS MS LOREY HAVEN'T READ ALL THE FINE PRINT IN THEIR EMPLOYERPROVIDED HEALTH PLANS INCLUDING THE PROVISION ABOUT ARBITRATION MS LOREY SAYS SHE DIDN'T LEARN ABOUT THE ARBITRATION AGREEMENT UNTIL THE DAY SHE WAS ADMITTED TO THE HOSPITAL FOR THE DELIVERY OF HER CHILD MS LOREY'S CASE WAS HEARD IN A CONFERENCE ROOM NEAR SAN DIEGO WHERE THE PLAINTIFF SAT SURROUNDED BY SIX LAWYERS AND ARBITRATORS IN THE CASE IT'S SUCH A CLOSED SETTING MS LOREY SAYS I FELT PRETTY GANGED UP ON PRETTY INTIMIDATED KAISER DROPPED ITS ARBITRATION REQUIREMENT IN 1991 IN OREGON AND WASHINGTON PARTLY BECAUSE IT WAS UNDER PRESSURE FROM COMPANIES THERE THAT THOUGHT THEIR EMPLOYEES MIGHT OBJECT TO THE PROVISION BUT IN GENERAL KAISER DEFENDS THE ARBITRATION PROCESS SAYING ONE BENEFIT IS ITS LACK OF FORMALITY IT IS DIFFICULT TO BELIEVE THAT SOMEONE WOULD FIND IT MORE INTIMIDATING TO SIT IN A ROOM WITH PEOPLE SITTING AROUND A TABLE THAN TO GO INTO A COURTROOM WITH A BOX FULL OF PEOPLE THAT YOU DON'T KNOW AND A JUDGE SITTING UP IN A THRONELIKE SEAT SAYS MS O'HANLON THE KAISER LAWYER SHE ALSO SAYS KAISER IS TRYING TO MAKE PATIENTS MORE AWARE OF THE ARBITRATION REQUIREMENT IN PUBLICATIONS SENT TO MEMBERS IN A KAISER HEARING THE PATIENT AND THE HMO EACH SELECT ONE ARBITRATOR TYPICALLY A LAWYER OR A RETIRED JUDGE AND A THIRD IS CHOSEN WITH THE CONSENT OF BOTH SIDES TO SERVE AS A NEUTRAL TIEBREAKER EACH PARTY HAS ITS OWN LEGAL REPRESENTATION AND PAYS ITS OWN ARBITRATOR AN HOURLY FEE THE TWO SIDES SPLIT THE NEUTRAL ARBITRATOR'S BILL WHICH CAN RUN AS HIGH AS 350 AN HOUR EVIDENCE SUCH AS THAT PROVIDED BY MEDICAL EXPERTS IS PRESENTED MUCH THE WAY IT WOULD BE IN A COURTROOM THE NEED FOR A NEUTRAL ARBITRATOR IN EVERY CASE HAS RAISED ANOTHER PRACTICAL PROBLEM FOR KAISER FINDING ENOUGH OF THEM WHO DON'T HAVE CONFLICTS OF INTEREST THAT WAS THE ISSUE HIGHLIGHTED IN THE CASE OF THE LATE FREYA NEAMAN WHOSE FAMILY SUED KAISER FOR ALLEGEDLY FAILING TO PROMPTLY DIAGNOSE HER LUNG CANCER MS NEAMAN'S FAMILY LOST THE ARBITRATION BUT LAST YEAR THEY GOT THE CALIFORNIA SUPREME COURT TO THROW OUT THE RULING BECAUSE THE NEUTRAL ARBITRATOR A RETIRED JUDGE HADN'T DISCLOSED THAT HE HAD SERVED AS KAISER'S OWN ARBITRATOR IN FIVE PREVIOUS CASES THE BAN ON APPEALING ARBITRATIONS GENERALLY CAN BE LIFTED IF THERE IS EVIDENCE OF BIAS OR FRAUD THE JUDGE'S RELATIONSHIP WITH KAISER WAS A SUBSTANTIAL BUSINESS RELATIONSHIP AND SHOULD HAVE BEEN FULLY DISCLOSED THE COURT SAID KAISER SAYS IT IS MAKING MORE EFFORTS TO ENSURE THAT NEUTRAL ARBITRATORS ARE TRULY UNBIASED BUT WITH A LIMITED POOL OF EXPERIENCED ARBITRATORS SOME LAWYERS BELIEVE IT WILL BE INCREASINGLY DIFFICULT TO FIND PEOPLE WITHOUT TIES TO KAISER IT'S BAD ENOUGH THAT I LOST MY MOTHER SAYS BLYTHE LEIDERMAN MS NEAMAN'S DAUGHTER WHO IS NOW TRYING TO GET A COURT HEARING FOR THE CASE THEN TO FIND OUT THAT THE PERSON WHO WAS SUPPOSED TO BE OBJECTIVE AND NEUTRAL REALLY WASN'T THAT REALLY HURTS A FEDERAL COURT RULING THAT WOULD FORCE GENERAL MOTORS CORP TO REINSTATE FULL HEALTHCARE BENEFITS FOR 50000 EARLY RETIREES COULD COST GM TENS OF MILLIONS OF DOLLARS US DISTRICT JUDGE JOHN FEIKENS OF DETROIT RULED WEDNESDAY THAT GM BROKE A CONTRACT WITH EARLY RETIREES BY IMPOSING HEALTHCARE DEDUCTIBLES AND COPAYMENTS BEGINNING IN 1988 THE 119PAGE RULING COVERS GM EMPLOYEES WHO TOOK EARLY RETIREMENTS FROM 1974 TO 1988 I FIND THAT GM ENTERED INTO CONTRACTS WITH ITS EARLY RETIREES WHICH VESTED IN THE RETIREES AND THEIR SPOUSES CERTAIN HEALTHCARE BENEFITS FOR THEIR LIFETIMES AT NO COST TO THEM JUDGE FEIKENS WROTE THE RULING MAY PUSH THE LIMITS OF WHAT RETIREES IN OTHER COMPANIES CAN DEMAND UNDER EMPLOYEEBENEFITS LAW THOUGH THE FACT THAT THIS WAS A LOWERCOURT RULING LESSENS THE IMMEDIATE IMPACT OF THE DECISION BEYOND THE FACTS OF THE CASE GM IS CONSIDERING AN APPEAL GM SAID IT WAS PREMATURE TO SPECULATE HOW MUCH MONEY IT MIGHT HAVE TO PAY AS A RESULT OF THE RULING OR WHETHER GM WOULD REQUIRE A CHARGE TO COVER IT UNTIL 1988 GM RETIREES HAD ENJOYED ALMOST FREE HEALTHCARE BENEFITS BUT IN THAT YEAR AS PART OF A COSTCUTTING MOVE GM TOLD FAMILIES THEY WOULD BE RESPONSIBLE FOR AS MUCH AS 750 A YEAR IN OUTOFPOCKET MEDICAL EXPENSES IF THEY REMAINED IN TRADITIONAL INSURANCE PLANS THE CLASSACTION LAWSUIT INITIATED BY GM RETIREES IN THE FLINT MICH AREA WAS FILED SHORTLY AFTERWARD BY 84000 RETIREES IN 1991 JUDGE FEIKENS RULED THAT GM HAD ACTED WITHIN ITS RIGHTS IN SLASHING BENEFITS FOR 34000 RETIREES WHO HAD TAKEN NORMAL RETIREMENT HIS RULING WEDNESDAY APPLIES TO THE 50000 GM SALARIED WORKERS WHO RETIRED UNDER VARIOUS EARLYRETIREMENT PLANS BEFORE 1988 THE RULING DOESN'T AFFECT GM'S RETIRED HOURLY EMPLOYEES WHO STILL ENJOY FULL MEDICAL BENEFITS IN SOME EMPLOYEE HANDBOOKS THE JUDGE CONCLUDED IN THE LATEST RULING GM DIDN'T CLEARLY STATE THAT IT MIGHT CUT OFF THE BENEFITS AND SOME INTERNAL GM MEMOS ASSURED RETIREES THAT THEY WOULD HAVE HEALTH BENEFITS FOR LIFE IN ADDITION THE JUDGE SAID SOME EMPLOYEES DIDN'T BELIEVE THE HANDBOOKS APPLIED TO THEM AND SOME THOUGHT THAT LANGUAGE PERMITTING GM TO CHANGE HEALTH BENEFITS MEANT ONLY THAT BENEFITS MIGHT BE UPGRADED JUDGE FEIKENS ALSO SAID RELEASES THAT EMPLOYEES SIGNED WHEN THEY RETIRED WERE IN EFFECT CONTRACTS WITH GM NEAL TEMPLIN AND JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9402040121 940204 TECHNOLOGY PRODIGY TAKES SWIPE AT AMERICA ONLINE FOR SOME DELAYS IN SERVING CUSTOMERS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRODIGY SERVICES CO STAGED AN UNUSUAL NEWS CONFERENCE TO TAKE A TACIT SWIPE AT ITS UPSTART RIVAL AMERICA ONLINE INC A TOP PRODIGY EXECUTIVE HOSTED A CONFERENCE CALL WITH REPORTERS TO BRAG ABOUT THE PRODIGY ONLINE SYSTEM'S ABILITY TO SERVE HUGE NUMBERS OF USERS EARLIER THIS WEEK AMERICA ONLINE TOLD CUSTOMERS IT WOULD HAVE TO RATION ACCESS TO ITS COMPUTER SERVICE DURING PEAK HOURS BECAUSE RAPID GROWTH HAD OVERWHELMED ITS ABILITY TO SERVE ALL USERS THE BROADSIDE WAS A SIGN OF THE SCRAP BREAKING OUT IN THE BURGEONING MARKET FOR ONLINE COMPUTER SERVICES PRODIGY HAS DEEP POCKETS AND ONE MILLION HOUSEHOLDS BUT IT HAS YET TO TURN A PROFIT AFTER ABOUT FIVE YEARS OF OPERATION AMERICA ONLINE BY CONTRAST IS INDEPENDENT HAS 600000 SUBSCRIBERS AND IS A WALL STREET DARLING POSTING PROFITS RELATIVELY EARLY AND GOING PUBLIC IN A HUGELY SUCCESSFUL OFFERING SCOTT KURNIT EXECUTIVE VICE PRESIDENT AT PRODIGY SAID IN THE CONFERENCE CALL THAT HIS ONLINE SERVICE COULD ACTUALLY HANDLE ALL OF THE 40 MILLION PERSONAL COMPUTERS THAT ARE CURRENTLY IN HOUSEHOLDS WHILE HE AVOIDED NAMING AMERICA ONLINE EXPRESSLY HE CHALLENGED REPORTERS TO CHECK OUT PRODIGY'S HARDWARE STRENGTH AND COMPARE IT WITH AN UNNAMED RIVAL LOOK AT US AND LOOK AT THEM AND SEE HOW THEY'RE BUILT AND KICK THE TIRES PRODIGY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO ALSO RAN TV COMMERCIALS SIX TIMES WEDNESDAY NIGHT STRESSING A SIMILIAR MESSAGE THE SPOTS BEGAN WITH AN ACTRESS MENTIONING THAT SOME PEOPLE ARE HAVING TROUBLE GETTING ONTO THE ELECTRONIC SUPERHIGHWAY THAT BROUGHT A PHILOSOPHICAL RESPONSE FROM STEVE CASE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VIENNA VABASED AMERICA ONLINE I'D SAY ALL'S FAIR IN LOVE AND WAR AMERICA ONLINE'S SUBSCRIBER BASE HAS MORE THAN DOUBLED IN THE PAST YEAR ANALYSTS ESTIMATE IT NEEDS TO BE ABLE TO SERVE AS MANY AS 16000 CUSTOMERS DURING PEAK USAGE BUT THAT IT CAN TAKE ONLY 8000 MR CASE DISPUTES THOSE NUMBERS BUT WON'T SAY WHETHER THEY ARE TOO HIGH OR TOO LOW WHEN THE SYSTEM OVERLOADS CUSTOMERS CAN GET BUSY SIGNALS OR SLOW RESPONSES THE PERFORMANCE IS VERY SLOW SAID MICHAEL B WILLIAMS A SOFTWARE ENGINEER IN WALTHAM MASS WHO IS A FREQUENT USER OF ONLINE SERVICES IF SERVICE DOESN'T IMPROVE HE SAID HE WILL CANCEL HIS MEMBERSHIP RATHER THAN ASK FOR THE PERIODIC REFUNDS THE COMPANY HAS PROMISED TO PAY MR CASE SAID AMERICA ONLINE HAS HIRED STAFF ACQUIRED EXTRA COMPUTER GEAR AND MODIFIED THE NETWORK SOFTWARE AND HOPES TO SOLVE THE PROBLEM WITHIN TWO MONTHS HE ALSO SAID THE COMPANY WILL TEMPORARILY CURB SOME EFFORTS TO SIGN UP SUBSCRIBERS WE'RE HOLDING BACK ON DIRECT MARKETING FORGOING MAILED PITCHES UNTIL THE OVERLOAD PROBLEMS ARE FIXED BUT THERE IS STILL DEMAND IN THE PIPELINE AND WE INTEND TO MEET THAT DEMAND HE SAID ANALYSTS STRESS THAT AMERICA ONLINE MUST ACT QUICKLY SAYS MARK STAHLMAN OF NEW MEDIA ASSOCIATES A CONSULTING FIRM IT'S CRUCIAL THAT THEY RETAIN THE SUBSCRIBERS THEY ALREADY HAVE 9402040120 940204 WHO'S NEWS MEDIA GENERAL INC MEDIA GENERAL INC RICHMOND VA JOHN G MEDLIN JR 60 WAS NAMED A DIRECTOR OF THIS MEDIA COMPANY FILLING A VACANCY ON THE NINEMEMBER BOARD HE IS CHAIRMAN AT WACHOVIA CORP A BANK HOLDING COMPANY IN WINSTONSALEM NC 9402040119 940204 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH ROBERT E ALLEN THE 59YEAROLD CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO WAS NAMED TO THE BOARD OF THIS AUTO MAKER EXPANDING BOARD MEMBERSHIP FROM TO 14 CHRYSLER'S CHAIRMAN ROBERT J EATON SAID THAT AT&T HAS GONE THROUGH THE KIND OF CULTURAL CHANGES THAT CHRYSLER IS NOW WORKING ON AND THAT MR ALLEN WILL HELP GUIDE CHRYSLER THROUGH ITS CONTINUING PROCESS OF INTERNAL CHANGE AND IMPROVED COMPETITIVENESS MR ALLEN WAS ELECTED A MEMBER OF THE BOARD'S FINANCE AND NOMINATING COMMITTEES HE ALSO SITS ON THE BOARD OF THE FEDERAL RESERVE BANK OF NEW YORK PEPSICO INC AND BRISTOLMYERS SQUIBB CO SEPARATELY JAMES D DONLON III 47 CHRYSLER'S CONTROLLER WAS ELECTED A VICE PRESIDENT HE WILL CONTINUE TO SERVE AS CONTROLLER 9402040118 940204 POLITICS & POLICY CLINTON AND COOPER HEALTH PROPOSALS HOW THEY COMPARE ON MAJOR ISSUES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LEGISLATION WRITTEN BY REP JIM COOPER D TENN GAINED NEW ATTENTION THIS WEEK WHEN THE BUSINESS ROUNDTABLE SUPPORTED IT AS A STARTING POINT FOR CONGRESSIONAL DELIBERATIONS ON HEALTH CARE TO MANY PEOPLE THE COOPER BILL HAS BECOME THE LEADING ALTERNATIVE TO PRESIDENT CLINTON'S HEALTH PLAN THE RALLYING SYMBOL FOR THOSE WHO CONSIDER THE WHITE HOUSE PROPOSAL TO BE TOO RICH TOO REGULATORY AND TOO BUREAUCRATIC BUT TO OTHERS INCLUDING THE ADMINISTRATION THE COOPER PLAN IS TOO TIMID AND TOO VAGUE HERE IS HOW THE TWO BILLS COMPARE ON THE MAJOR ISSUES COVERAGE THE CLINTON BILL WOULD GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS THE COOPER BILL WOULDN'T ALTHOUGH ITS AUTHORS ARGUE IT WOULD REMOVE SO MANY OBSTACLES THAT NEARLY EVERYONE COULD OBTAIN HEALTH INSURANCE UNDER THE WHITE HOUSE PLAN ALL EMPLOYERS WOULD BE REQUIRED TO PAY ON BEHALF OF EACH FULLTIME WORKER AT LEAST 80 OF THE COST OF THE AVERAGE PRICE OF A FEDERALLY DEFINED HEALTHBENEFITS PACKAGE LESSER CONTRIBUTIONS WOULD BE REQUIRED FOR PARTTIME WORKERS POOR AND UNEMPLOYED PEOPLE WOULD GET GOVERNMENT SUBSIDIES TO HELP PAY FOR COVERAGE THE COOPER BILL WOULD REQUIRE ALL EMPLOYERS TO OFFER THEIR EMPLOYEES A HEALTH PLAN BUT IT WOULDN'T REQUIRE THEM TO PAY FOR IT IT WOULD PROVIDE SUBSIDIES TO HELP LOWINCOME PEOPLE BUY HEALTH INSURANCE BOTH THE CLINTON AND COOPER PROPOSALS WOULD OUTLAW A NUMBER OF INSURANCE PRACTICES THAT MAKE IT DIFFICULT FOR PEOPLE TO OBTAIN COVERAGE THEY WOULD FORBID INSURANCE FIRMS FROM DENYING COVERAGE TO PEOPLE WITH SOCALLED PREEXISTING MEDICAL CONDITIONS FROM RAISING PREMIUMS ON THE SICK AND FROM DROPPING HIGHRISK PEOPLE FROM HEALTH POLICIES BENEFITS THE CLINTON BILL WOULD ESTABLISH A NATIONAL BENEFITS PACKAGE FOR EVERY AMERICAN INCLUDING COVERAGE FOR HOSPITALIZATION PHYSICIAN VISITS PRESCRIPTION DRUGS AND A RANGE OF PREVENTIVE SERVICES LIKE CHILDHOOD IMMUNIZATIONS THE COOPER BILL ALSO PROVIDES FOR A STANDARD BENEFITS PACKAGE BUT THE DETAILS WOULD BE DETERMINED LATER BY A FEDERAL COMMISSION AND WOULD BE SUBJECT TO CONGRESSIONAL APPROVAL GUIDELINES IN THE COOPER LEGISLATION SAY THE PACKAGE WOULD HAVE TO COVER PREVENTIVE CARE PRESCRIPTION DRUGS AND MEDICALLY APPROPRIATE SERVICES AND PROCEDURES MR COOPER SAID THIS WEEK HE IS WILLING TO SPECIFY AN INTERIM BENEFITS PACKAGE IN THE BILL PURCHASING POOLS BOTH PLANS WOULD UNITE BUSINESSES AND CONSUMERS IN INSURANCEBUYING POOLS THE POOLS WOULD COLLECT PREMIUMS FROM INDIVIDUALS AND BUSINESSES TO PAY FOR VARIOUS PLANS PROVIDING THE STANDARD BENEFITS PACKAGE INDIVIDUALS THEN WOULD SELECT FROM AMONG THE PLANS THE IDEA BEHIND THE POOLS IS TO SPREAD INSURANCE RISK AND INCREASE THE NEGOTIATING POWER OF CONSUMERS IN THE HEALTHCARE MARKET BUT THERE ARE BIG DIFFERENCES BETWEEN THE CLINTON AND THE COOPER PLANS THE CLINTON BILL WOULD REQUIRE ALL EMPLOYERS WITH FEWER THAN 5000 WORKERS TO JOIN THE HEALTH ALLIANCES IN THEIR REGIONS THE ALLIANCES WOULD BE SET UP AND SUPERVISED BY THE STATES THEY WOULD MONITOR THE QUALITY OF HEALTH PLANS AND WOULD IMPOSE CEILINGS ON HEALTHINSURANCE PREMIUMS THE COOPER BILL WOULD SET UP REGIONAL NONPROFIT STATECHARTERED HEALTHPLAN PURCHASING COOPERATIVES ONLY BUSINESSES WITH FEWER THAN 100 EMPLOYEES WOULD BE REQUIRED TO JOIN THE COOPERATIVES WHICH WOULDN'T HAVE AS MANY POWERS AS THE CLINTON HEALTH ALLIANCES COST CONTAINMENT BOTH BILLS SEEK TO STIMULATE COMPETITION IN THE HEALTH INDUSTRY IN ORDER TO HOLD DOWN PRICES BUT THE CLINTON PLAN ALSO WOULD PLACE LEGAL CEILINGS ON PREMIUMS FOR THE STANDARD BENEFITS PACKAGE BOTH WOULD OFFER INCENTIVES TO ENCOURAGE ENROLLMENT IN HEALTHMAINTENANCE ORGANIZATIONS AND OTHER PREPAID NETWORKS OF DOCTORS AND HOSPITALS TAXATION OF HEALTH BENEFITS TEN YEARS AFTER ENACTMENT OF THE CLINTON BILL EMPLOYEES WOULD HAVE TO PAY TAXES ON ANY HEALTH BENEFITS THEY RECEIVE THAT AREN'T IN THE STANDARD BENEFITS PACKAGE UNLESS THEY WERE RECEIVING THESE EXTRA BENEFITS AS OF JAN 1 1993 EMPLOYERS COULD CONTINUE TO DEDUCT ALL THEIR HEALTHBENEFITS COSTS THE COOPER BILL WOULD LIMIT EMPLOYER DEDUCTIONS TO THE COST OF THE LOWESTPRICE ACCOUNTABLE HEALTH PLAN IN EACH REGION FOR WORKERS HEALTH BENEFITS WOULD CONTINUE TO BE TAX FREE THE COOPER PLAN ALSO WOULD ALLOW INDIVIDUALS TO DEDUCT ANY PORTION OF THEIR HEALTH BENEFITS THAT THEY PAY THEMSELVES BOTH PLANS WOULD ALLOW SELFEMPLOYED PEOPLE TO DEDUCT 100 OF THE COST OF THEIR HEALTH COVERAGE FINANCING THE CLINTON PLAN WOULD RAISE TAXES ON CIGARETTES AND OTHER TOBACCO PRODUCTS IT WOULD CAP SPENDING ON MEDICARE AND MEDICAID THE TWO BIG GOVERNMENT HEALTH PROGRAMS AND USE THE SAVINGS TO HELP FINANCE UNIVERSAL COVERAGE IT ALSO WOULD ASSESS A 1 PAYROLL CHARGE ON LARGE CORPORATIONS THAT OPT NOT TO JOIN THE REGIONAL ALLIANCES THE COOPER PLAN WOULD USE REVENUES RAISED FROM LIMITING EMPLOYER DEDUCTIONS FOR HEALTH BENEFITS TO FINANCE SUBSIDIES FOR LOWINCOME PEOPLE SUBSIDIES THE CLINTON PLAN WOULD SUBSIDIZE HEALTH PREMIUMS FOR PEOPLE WHOSE INCOME IS LESS THAN 150 OF THE POVERTY LEVEL AND FOR BUSINESSES WITH FEWER THAN 75 WORKERS AND WAGES THAT AVERAGE UNDER 24000 IT ALSO WOULD HAVE THE FEDERAL GOVERNMENT ABSORB 80 OF THE HEALTHINSURANCE COSTS OF PEOPLE WHO RETIRE BEFORE AGE 65 THE COOPER PLAN WOULD SUBSIDIZE HEALTH PREMIUMS FOR PEOPLE WHO EARN LESS THAN 200 OF THE POVERTY LEVEL MEDICARE BOTH PLANS WOULD LEAVE IT VIRTUALLY ALONE SPONSORSHIP THE CLINTON PLAN IS SPONSORED ALMOST ENTIRELY BY DEMOCRATS WITH THE EXCEPTION OF SEN JAMES JEFFORDS R VT THE COOPER PLAN HAS BIPARTISAN SPONSORSHIP CONSISTING MOSTLY OF CONSERVATIVE DEMOCRATS AND MODERATE REPUBLICANS WHILE MR COOPER HAS GOTTEN MOST OF THE PUBLICITY THE LEGISLATION'S OTHER CHIEF SPONSOR IN THE HOUSE IS REP FRED GRANDY R IOWA A COMPANION BILL IN THE SENATE IS SPONSORED BY JOHN BREAUX D LA AND DAVID DURENBERGER R MINN 9402040117 940204 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RAILROADS IN EUROPE ARE TRYING TO FIGURE OUT HOW TO REVERSE DECLINING RIDERSHIP AND DEAL WITH A LACK OF INNOVATION OFFICIALS OF THE UNPROFITABLE AND DEEPLY INDEBTED SYSTEMS SAID THEY NEED REVAMPING TO LURE MOTORISTS FROM HIGHWAYS AND COMPETE WITH OTHER KINDS OF TRANSPORTATION ANTONIO LORENZO NECCI AN ITALIAN RAILROAD ADMINISTRATOR AND CHAIRMAN OF THE INTERNATIONAL UNION OF RAILWAYS SAID LITTLE BY LITTLE WE'VE BECOME A SYSTEM OF TRANSPORTATION THAT'S BECOME MARGINAL IN THE PAST TWO DECADES THE RAIL SHARE OF THE EUROPEAN PASSENGER MARKET FELL TO 7 FROM 10 CURRENT TRENDS AREN'T ENCOURAGING RAIL PASSENGER TRAFFIC FELL IN ALL 12 COUNTRIES OF THE EUROPEAN UNION LAST YEAR FOR AN AVERAGE DROP OF 36 YET OUR ADVANTAGE NOW IS THAT HIGHWAYS ARE FULL MR NECCI SAID AMONG SOLUTIONS PROPOSED BY THE RAIL GROUP FRANCOGERMAN COOPERATION IN THE HIGHSPEED TRAIN BUSINESS AND HIGHER GASOLINE TAXES TO PAY FOR RAIL IMPROVEMENTS THE GEORGES POMPIDOU MODERN ART CENTER IN PARIS TOUTED AS THE WORLD'S MOSTVISITED MUSEUM WILL BE RENOVATED IN A CAMPAIGN TO RENEW THE FRENCH CAPITAL'S CULTURAL LANDMARKS THE POMPIDOU CENTER OPENED 17 YEARS AGO WITH CAPACITY FOR 300 STAFF MEMBERS AND 7000 VISITORS A DAY BUT HAS 1500 STAFF SERVING 25000 VISITORS DAILY A 20 MILLION TWOYEAR OVERHAUL OF THE EXTERIOR PIAZZA WILL START NEXT JANUARY THE SECOND PHASE IS TO UPGRADE THE INTERIOR OTHER AGING AND STRUCTURALLY DEFECTIVE LANDMARKS TO GET IMPROVEMENTS INCLUDE THE PALAIS GARNIER OPERA HOUSE PANTHEON GRAND PALAIS EXHIBITION HALL COMEDIE FRANCAISE THEATER AND TROCADERO SQUARE TO HELP BOLSTER UKRAINE'S FALTERING ECONOMY EUROPEAN UNION AMBASSADORS AGREED TO OFFER THE REPUBLIC A MORE GENEROUS PARTNERSHIP AND COOPERATION AGREEMENT SIMILAR TO THAT BEING NEGOTIATED WITH RUSSIA TO SOFTEN EU TRADE DEFENSES THE 12COUNTRY BLOC ALSO AGREED TO NEGOTIATE MEATIER FREETRADE PACTS WITH ESTONIA LATVIA AND LITHUANIA SUCH AS LOWERING BARRIERS ON PRODUCTS IN A MOVE TOWARD CONCLUDING MORE ADVANCED ASSOCIATION ACCORDS WITH THE THREE BALTIC NATIONS THE STEPS ARE EXPECTED TO BE ENDORSED BY EU FOREIGN MINISTERS ON MONDAY CONSUMERPRODUCTS COMPANIES HOPING FOR CHINESE CONSUMER SPENDING TO SURGE OVER THE LUNAR NEWYEAR HOLIDAY MAY BE DISAPPOINTED CHINESE BUYING HABITS HAVE CHANGED IN RECENT YEARS REFLECTING INCREASING URBANIZATION AND EXPOSURE TO WESTERN CUSTOMS A HONG KONG TRADE DEVELOPMENT COUNCIL ECONOMIST SAID THE CHINESE PURCHASE MORE AT CHRISTMASTIME NOWADAYS HE SAID AND THIS RESTRAINS SPENDING IN THE CHINESE NEW YEAR CELEBRATED NEXT THURSDAY BUT IN RURAL AREAS FEW PEOPLE EXCHANGE GIFTS AT CHRISTMAS AND THUS ARE MORE LIKELY TO SPEND MORE FOR THE CHINESE NEW YEAR BRITAIN BEGAN A PILOT STUDY BY FORENSIC SCIENTISTS TO SET UP A GENETIC DATABASE TO TRAP CRIMINALS LEGISLATION BEFORE PARLIAMENT WOULD WIDEN POLICE POWERS TO TAKE DNA SAMPLES FROM SALIVA AND HAIR SAMPLES FOR A NATIONAL DATABASE OF CONVICTED CRIMINALS WE WILL BRING THE FULL FORCE OF MODERN SCIENCE TO BEAR ON THE MODERN CRIMINAL A UK OFFICIAL SAID TAIWAN'S CABINET APPROVED REIMPOSING A CAPITALGAINS TAX ON SECURITIES THAT WAS SCRAPPED IN 1989 AND CUTTING THE STOCKTRANSACTION TAX TO 02 FROM 03 STARTING JULY 1 UNDER THE PLAN WHICH NEEDS PARLIAMENTARY APPROVAL SOME INDIVIDUALS WOULD BE SUBJECT TO A 06 CAPITALGAINS TAX THE LEVY WOULD BE 03 FOR INSTITUTIONAL INVESTORS SEPARATELY IN ITS BID TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE TAIWAN OFFERED TO CUT TARIFFS ON 475 IMPORTED ITEMS AN AVERAGE OF 20 THE US SEEKS A HALVING OF DUTIES ON 699 ITEMS ONEDAY PROTESTS OF GOVERNMENTS' INACTION ACTION AND PROPOSALS STRETCHED FROM SOUTH AMERICA TO ASIA IN POLAND 60000 ARMSINDUSTRY WORKERS SHUT 31 FACTORIES IN A NATIONWIDE WARNING STRIKE TO DEMAND A VISION FOR THE AILING DEFENSE SECTOR UNIONS WANT HIGHER PAY AND MORE GOVERNMENT PURCHASES AND SUBSIDIES FOR RESTRUCTURING THE SECTOR ITS SALES CRUSHED BY THE EAST BLOC'S COLLAPSE IN ECUADOR A GENERAL STRIKE TO PROTEST THE GOVERNMENT'S 71 INCREASE IN GASOLINE PRICES TURNED VIOLENT IN MANY AREAS IN PAKISTAN A STRIKE CALLED BY A POLITICAL OPPOSITION PARTY OVER POWER DILUTION FROM REDISTRICTING SHUT DOWN KARACHI WHERE SHOOTINGS CAUSED FATALITIES IN WESTERN GERMANY METALWORKING INDUSTRIES HELD TO A PROPOSED WAGE FREEZE AS UNION WARNING STRIKES EXTENDED INTO A FOURTH DAY 176000 WORKERS WALKED OUT OF 590 ENTERPRISES FRANCE TIGHTENED CUSTOMS' QUALITY CONTROLS AFTER 1200 STRIKING FISHERMEN SACKED A HUGE WHOLESALE FOOD MARKET TO PROTEST INEXPENSIVE IMPORTS THEY SAY THREATEN THEIR LIVELIHOOD THEY WANT EUROPEAN PRICE MINIMUMS AND IMPORT PROTECTION BRITISH CUSTOMS OFFICERS EMPTIED 10000 BEER WINE AND LIQUOR BOTTLES INTO SEWERS TO WARN AGAINST BOOTLEGGING IN THE BARRIERFREE EUROPEAN UNION TAKING ALCOHOLIC BEVERAGES HOME FROM OTHER COUNTRIES FOR PERSONAL USE IS LEGAL BUT PROFITEERING ISN'T MOUNT SEMNERU A 9877FOOTHIGH VOLCANO IN EAST JAVA INDONESIA ERUPTED FOR THE FIRST TIME IN 13 YEARS 9402040116 940204 COMMODITIES SUGARFUTURES PRICES SOAR AMID EXPECTATIONS OF RUSSIAN TAX STRONG SHORTTERM DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL SUGARFUTURES PRICES SOARED PUSHING THE VALUE OF THE ACTIVELY TRADED MARCH FUTURES CONTRACT TO 11 CENTS A POUND FOR THE FIRST TIME SINCE OCTOBER AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE SUGAR FOR MARCH DELIVERY WAS UP 052 CENT ON THE DAY TO SETTLE AT 11 CENTS A POUND LENDING STRENGTH TO THE SUGARFUTURES MARKET WHICH HAS TRADED IN A RELATIVELY NARROW PRICE RANGE FOR MONTHS WERE EXPECTATIONS OF THE IMPOSITION OF A WHITESUGAR TAX BY RUSSIA A MAJOR IMPORTER OF SUGAR SUGAR TRADERS HAVE LONG EXPECTED THE ANNOUNCEMENT OF THE RUSSIAN SUGAR TAX BUT MOST HAVE BEEN EXPECTING THE TAX TO BE QUITE LARGE PERHAPS AS MUCH AS 50 OF THE PRICE OF SUGAR YESTERDAY ALTHOUGH THERE WAS STILL NO FORMAL ANNOUNCEMENT OF THE TAX THE TALK IN THE MARKET WAS THAT IT WOULD BE LESS THAN THAT PERHAPS 20 TO 25 OF SUGAR'S PRICE EVERYONE KNOWS THE TAX IS COMING BUT IT'S NOT GOING TO BE AS BIG AS PEOPLE MIGHT HAVE THOUGHT SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON MOREOVER IN THE MONTHS BETWEEN WHEN THE TAX IS ANNOUNCED AND WHEN IT IS ACTUALLY IMPOSED MANY TRADERS EXPECT RUSSIAN IMPORTS TO SURGE PROVIDING ADDITIONAL SHORTTERM SUPPORT FOR FUTURES PRICES SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH ALSO IN THE MARKET YESTERDAY MS GANES SAID WERE REPORTS THAT EGYPT BOUGHT FIVE CARGOS OF SUGAR OR ABOUT 65000 TONS DEMAND FOR SUGAR IS GENERALLY EXPECTED TO BE STRONG OVER THE NEXT FEW MONTHS AMONG THE MOST PREVALENT REPORTS CIRCULATING IN THE MARKET ARE EXPECTATIONS THAT CHINA AND INDIA WILL MAKE MAJOR PURCHASES OF SUGAR SOMETIME SOON BUYING HAS ALSO BEEN MATERIALIZING FROM OTHER QUARTERS MS KAUL SAID WE'VE BEEN SEEING INCREASED MIDDLE EASTERN BUYING SHE SAID IT'S BEGINNING TO GET US TO A POINT WHERE THERE ARE CONCERNS ABOUT AVAILABILITY OF WHITE SUGAR BECAUSE OF TIGHT SUPPLIES OF SUGAR AND EXPECTATIONS OF STRONG DEMAND MANY ANALYSTS EXPECT PRICES TO CONTINUE TO RISE OVER THE NEXT FEW MONTHS THE LONGTERM PICTURE FOR THIS MARKET IS CERTAINLY HEALTHY MS GANES SAID ADDING THAT IT IS POSSIBLE THE PRICES OF SUGAR COULD RISE TO AS MUCH AS 13 CENTS IN THE NEAR FUTURE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS NERVOUSNESS ABOUT THE FEDERAL RESERVE BOARD'S RELUCTANCE TO INTERVENE IN THE US MONETARY SYSTEM PUSHED PRECIOUSMETALS PRICES HIGHER ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS UP 260 TO 38910 AN OUNCE WHILE THE ACTIVELY TRADED SILVERFUTURES CONTRACT ROSE 125 CENTS TO 547 AN OUNCE METALS PRICES WERE ALSO SUPPORTED BY A SHARP DOWNTURN IN BOND PRICES WHICH TEND TO MOVE IN INVERSE CORRELATION TO COMMODITY PRICES IN GENERAL SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY HELPED TO STRENGTHEN SILVER'S RALLY YESTERDAY AS THESE FUNDS BOUGHT LARGE NUMBERS OF SILVERFUTURES CONTRACTS GRAINS & SOYBEANS PRICES OF WHEATFUTURES CONTRACTS SETTLED LOWER IN QUIET TRADING CORN AND SOYBEAN PRICES SETTLED MIXED THE MARKETS CONTINUE TO BE DOMINATED BY FORECASTS FOR A BUMPER SOYBEAN CROP IN SOUTH AMERICA AS WELL AS FEEBLE FOREIGN DEMAND FOR US GRAIN WE'VE GOT THE FEBRUARY BLAHS SAID DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY DROPPED 35 CENTS A BUSHEL TO SETTLE AT 37125 A BUSHEL 9402040115 940204 DELTA TO CUT TRANSATLANTIC CAPACITY BY 12 DROPPING UNPROFITABLE LINES BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES ANNOUNCED PLANS TO CUT ITS TRANSATLANTIC CAPACITY BY 12 THIS SUMMER ELIMINATING SCORES OF THE MONEYLOSING ROUTES IT INHERITED AFTER BUYING PAN AM CORP'S AILING EUROPEAN OPERATIONS MORE THAN TWO YEARS AGO LATE LAST FALL DELTA SAID IT WOULD FIX SELL OR TRADE ROUTES THAT WEREN'T MAKING MONEY AND YESTERDAY'S ANNOUNCEMENT APPEARS TO FOLLOW THROUGH ON THAT VOW ATLANTABASED DELTA SAID IT WILL DROP TO 259 FROM 293 THE NUMBER OF WEEKLY FLIGHTS ACROSS THE NORTH ATLANTIC THIS SUMMER AS PART OF A DETAILED PLAN THAT CALLS FOR EVERY ATLANTIC FLIGHT TO PAY ITS OWN WAY DELTA HAS LOST HUNDREDS OF MILLIONS OF DOLLARS ON THE EUROPEAN ROUTES SINCE IT STARTED FLYING THEM IN NOVEMBER 1991 AND THE LOSSES HAVE FORCED THE AIRLINE TO INITIATE PAINFUL COMPANYWIDE COSTCUTTING MOVES WHILE INDUSTRY OBSERVERS GENERALLY APPROVED OF DELTA'S MOVE MANY THOUGHT IT WAS ABOUT TIME THE COMPANY UNDERTOOK IT IT'S A MUCHNEEDED MUCHDELAYED STEP THEY NEEDED TO HAVE DONE THIS SOONER SAID DAVID ULMER VICE PRESIDENT OF THE AIRLINE CONSULTING FIRM ROBERTS ROACH & ASSOCIATES IN SAN FRANCISCO THEY'VE TAKEN LONGER TO DIGEST THE PAN AM SYSTEM THAN THEY THOUGHT AND IT'S BEEN A BIGGER LOSER THAN THEY THOUGHT IN A STATEMENT DELTA CHAIRMAN RONALD W ALLEN SAID PRELIMINARY CALENDAR YEAR 1993 OPERATING RESULTS FOR DELTA'S TRANSATLANTIC OPERATIONS SHOWED A 12 IMPROVEMENT YEAROVERYEAR ONCE ONETIME CHARGES ARE EXCLUDED WHILE UNIT COSTS ARE DOWN 6 BUT EVEN THAT IMPROVEMENT IS COSTLY TO THE COMPANY PAUL KAROS AN AIRLINE ANALYST WITH CS FIRST BOSTON INC SAID HE ESTIMATES DELTA'S LOSS ON TRANSATLANTIC OPERATIONS FOR 1993 WILL BE 400 MILLION MR KAROS WAS ENTHUSIASTIC ABOUT DELTA'S ACTION CALLING IT A VERY SIGNIFICANT STRATEGIC MOVE EVEN WHILE DELTA CUTS DOWN ON FLIGHTS ACROSS THE ATLANTIC IT PLANS TO BEEF UP DOMESTIC SERVICE TO ITS HUB AT NEW YORK'S JOHN F KENNEDY AIRPORT AND INTRAEUROPE SERVICE FROM ITS HUB IN FRANKFURT DELTA SAID THAT EFFECTIVE MAY 1 IT WILL RESTRUCTURE ITS JFK OPERATIONS AND ADD 10 DOMESTIC FLIGHTS FROM OTHER DELTA HUBS IN FRANKFURT CAPACITY WILL JUMP 42 ON FLIGHTS BEYOND THE HUB AS THE AIRLINE REPLACES SMALLER JETS WITH LARGER ONES ON FLIGHTS FROM FRANKFURT TO ATHENS MOSCOW AND ISTANBUL FOR INSTANCE DELTA WILL REPLACE 119SEAT BOEING 727S WITH 177PASSENGER AIRBUS INDUSTRIE A310S AND INTRODUCE ITS 265PASSENGER MCDONNELL DOUGLAS MD11 FROM LOS ANGELES TO FRANKFURT AND FROM FRANKFURT TO INDIA DELTA HAS SAID IT FILLS A HIGH PERCENTAGE OF SEATS ON FLIGHTS BEYOND FRANKFURT IN THE COMPETITIVE FRANKFURT MARKET DELTA CAN'T AFFORD TO CUT BACK DELTA PROBABLY IS LOATH TO GIVE UP ANY CAPACITY BECAUSE SOMEBODY ELSE WILL COME IN AND GET IT SAYS JON ASH WITH THE WASHINGTON CONSULTING FIRM GLOBAL AVIATION ASSOCIATES IT'S A TOUGH POSITION THEY'RE PROTECTING THERE AS FOR SPECIFIC FLIGHTS DELTA SAID IT WILL DISCONTINUE ITS DAILY NONSTOPS BETWEEN SAN FRANCISCO AND FRANKFURT IN APRIL AND BETWEEN NEW YORK AND BUDAPEST IN MAY DELTA ALSO WILL BEGIN A CODESHARE ARRANGEMENT WITH MALEV HUNGARIAN AIRLINES IN MAY WHICH WILL ENABLE DELTA PASSENGERS WHO WANT TO GO TO BUDAPEST TO DO SO BY SWITCHING TO A MALEV JET AT JFK LAST MONTH DELTA BEGAN A SIMILAR CODESHARE ARRANGEMENT WITH SABENA AND ELIMINATED ITS DAILY JFKBRUSSELS FLIGHT DELTA ALREADY HAD ANNOUNCED PLANS TO ELIMINATE ITS NONSTOP MIAMIFRANKFURT AND NEW YORKVIENNA FLIGHTS 9402040114 940204 POLITICS & POLICY CLINTON LIFTS BAN ON TRADE WITH VIETNAM FULL TIES AWAIT ACCOUNTING FOR MISSING SOLDIERS US FIRMS READY TO GO BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON LIFTED THE 19YEAROLD TRADE EMBARGO ON VIETNAM SETTING OFF A RACE BY US COMPANIES TO CATCH UP WITH THEIR FOREIGN COMPETITORS IN THAT POTENTIALLY LUCRATIVE MARKET IN SOUTHEAST ASIA SOME US COMPANIES WHICH HAVE BEEN POSITIONING THEMSELVES FOR MORE THAN A YEAR FOR THE EMBARGO'S END WILL JUMP OUT OF THE STARTING BLOCK AMERICAN EXPRESS CO FOR EXAMPLE IS EXPECTED TO IMMEDIATELY SIGN AN AGREEMENT WITH VIETNAM THAT WILL PERMIT THE USE OF ITS CREDIT CARDS THERE ACCORDING TO EUGENE MATHEWS A US CONSULTANT TO THE COMPANY WHO HAS LIVED IN VIETNAM SINCE 1990 ALTHOUGH ASIAN AND EUROPEAN BUSINESS COMPETITORS HAVE IGNORED THE US EMBARGO FOR YEARS MR MATHEWS BELIEVES THAT SOME US COMPANIES PARTICULARLY IN THE CONSUMER PRODUCTS FIELD WILL CATCH UP QUICKLY MANY AMERICAN PRODUCTS SUCH AS COCACOLA HAVE BEEN SMUGGLED INTO VIETNAM FOR YEARS OTHER PRODUCTS RANGING FROM TOOTHPASTE TO COMPUTERS MADE BY INTERNATIONAL BUSINESS MACHINES CORP ARE REMEMBERED FROM THE WAR YEARS BY THAT GENERATION OF VIETNAMESE PRESIDENT CLINTON WHO AVOIDED MILITARY SERVICE DURING THE VIETNAM WAR DELIBERATELY PLAYED DOWN THE COMMERCIAL OPPORTUNITIES IN DEFERENCE TO THE FAMILIES OF SOLDIERS WHO REMAIN UNACCOUNTED FOR MANY FAMILY AND VETERANS GROUPS STRONGLY OPPOSED HIS DECISION TO LIFT THE EMBARGO INSTEAD MR CLINTON AND SENIOR US OFFICIALS EMPHASIZED HANOI'S COOPERATION OVER THE PAST YEAR IN HELPING TO RESOLVE SOME OF THESE CASES AND SAID A RECIPROCAL GESTURE WAS CALLED FOR I AM ABSOLUTELY CONVINCED IT OFFERS THE BEST WAY TO RESOLVE THE FATE OF THOSE WHO REMAIN MISSING AND ABOUT THOSE ABOUT WHOM WE ARE NOT SURE MR CLINTON SAID I WANTED TO MAKE SURE THAT THE TRADE QUESTIONS DID NOT ENTER INTO THIS DECISION MR CLINTON SAID I NEVER HAD A BRIEFING ON IT AND WE NEVER HAD A DISCUSSION ABOUT IT MR CLINTON ALSO AUTHORIZED THE ESTABLISHMENT OF LIAISON OFFICES IN WASHINGTON AND HANOI TO HELP WITH THE PROCESS OF ACCOUNTING FOR MISSING SOLDIERS AND ALSO TO PROVIDE SUPPORT SERVICES FOR US COMPANIES AND CITIZENS IN VIETNAM BUT THE US WON'T ESTABLISH FULL DIPLOMATIC RELATIONS WITH HANOI AT THIS TIME HOLDING BACK THAT STEP AS LEVERAGE TO ENSURE FURTHER PROGRESS ON THE ISSUE OF MISSING SOLDIERS FURTHERMORE THERE WILL STILL BE IMPEDIMENTS IN THE WAY OF USVIETNAM TRADE HANOI FOR INSTANCE WON'T HAVE MOST FAVORED NATION TRADE STATUS WHICH MEANS THAT PRODUCTS MADE THERE FOR THE US MARKET WILL BE SUBJECT TO SUBSTANTIALLY HIGHER US TARIFFS THAN GOODS FROM NEARLY ALL OTHER US TRADING PARTNERS AND THE OVERSEAS PRIVATE INVESTMENT CORP WHICH SUPPORTS MAJOR US INVESTMENTS IN DEVELOPING COMPANIES CAN'T SIGN AN AGREEMENT TO OPERATE IN VIETNAM UNTIL FULL DIPLOMATIC RELATIONS ARE ESTABLISHED THERE ALSO ARE VARIOUS US LAWS ON THE BOOKS THAT BAR TRADE OR AID TO VIETNAM SUCH AS THE 1993 FOREIGN AID APPROPRIATIONS BILL AND AMENDMENTS TO LAWS CONCERNING THE US EXPORTIMPORT BANK WHICH AIDS US EXPORTERS US OFFICIALS ALSO SAID THAT IT WOULD TAKE WEEKS AT LEAST TO WORK OUT FEDERAL REGULATIONS THAT WOULD GOVERN TRADE WITH VIETNAM ON CAPITOL HILL REPUBLICAN SEN JOHN MCCAIN OF ARIZONA THE FORMER VIETNAM PRISONER OF WAR WHO COSPONSORED A RECENT SENATE RESOLUTION FOR LIFTING THE EMBARGO SAID THE DECISION WOULD HONOR THE NATION'S COMMITMENT TO OUR POW/MIAS AND THEIR FAMILIES PROTECT OUR NATIONAL INTERESTS AND ADVANCE OUR VALUES ABROAD BUT BITTERNESS WILL LINGER OVER THE PRESIDENT'S DECISION SEN BOB SMITH R NH ANOTHER VIETNAM VETERAN QUESTIONED THE PRESIDENT'S VERY RIGHT TO MAKE THE DECISION WHEN MR CLINTON REFUSED TO SERVE IN VIETNAM PROTESTED THE WAR AND HAS NO MILITARY EXPERIENCE AS PRESIDENT CLINTON ANNOUNCED HIS DECISION A LONE PROTESTER DRESSED IN BLACK AND HOLDING A BLACK POW/MIA FLAG STOOD LIKE A SENTRY OUTSIDE THE WHITE HOUSE GATE THE DECISION IS A BIG VICTORY FOR VIETNAM NEARLY TWO DECADES AFTER FORCING THE US TO WITHDRAW HANOI WHICH FEARS MILITARY DOMINATION BY CHINA AND COMMERCIAL DOMINATION BY JAPAN NOW WANTS A MAJOR US PRESENCE AS A COUNTERWEIGHT AND EVEN THOUGH THE US EMBARGO HAD LITTLE AFFECT ON OTHER NATIONS MR CLINTON'S DECISION GIVES A BOOST TO THE PROCESS OF WELCOMING VIETNAM WHICH HAS UNDERGONE MAJOR ECONOMIC REFORM BACK INTO THE INTERNATIONAL FINANCIAL COMMUNITY TRYING TO CLOSE THE CIRCLE YESTERDAY MR CLINTON SAID WHATEVER THE VIETNAM WAR MAY HAVE DONE IN DIVIDING OUR COUNTRY IN THE PAST TODAY OUR NATION IS ONE IN HONORING THOSE WHO SERVED AND PRESSING FOR ANSWERS ABOUT ALL THOSE WHO DID NOT RETURN HE ADDED I REMAIN PERSONALLY COMMITTED TO CONTINUING THE SEARCH FOR THE ANSWERS AND THE PEACE OF MIND THAT THE FAMILIES OF THE MISSING DESERVE JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9402040113 940204 TECHNOLOGY NORTHERN STATES UTILITY NEARS PACT WITH APACHE TRIBE COMPANY'S SPENT NUCLEAR FUEL WOULD BE STORED IN CASKS ON NEW MEXICO RESERVE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MESCALERO APACHE TRIBE LEADERS TENTATIVELY AGREED TO ALLOW A MINNESOTA UTILITY TO STORE SPENT NUCLEAR FUEL ON ITS RESERVATION IN AN INITIAL STEP TOWARD ESTABLISHING A PRIVATELY OPERATED NUCLEARWASTE STORAGE SITE UNDER THE PACT TRIBAL LEADERS CONDITIONALLY AGREED TO LET MINNEAPOLISBASED NORTHERN STATES POWER CO STORE USED FUEL RODS FROM ITS NUCLEAR POWER PLANT IN ABOVEGROUND SEALED METAL CASKS ON THE TRIBE'S RESERVATION IN SOUTHERN NEW MEXICO IN ORDER TO MAKE THIS A VIABLE PROJECT WE NEED MORE THAN THE SPENT FUEL FROM NSP JAMES J HOWARD THE UTILITY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW HE ADDED THAT THE COMPANY WILL NOW BEGIN CONTACTING OTHER UTILITIES TO DETERMINE WHETHER THEY'RE INTERESTED IN JOINING THE VENTURE THE PACT IS SURE TO SPARK CONTROVERSY AND ANY FINAL CONTRACT MUST BE APPROVED BY A VOTE OF THE TRIBE MEMBERSHIP ABOUT 3200 PEOPLE LATE YESTERDAY NEW MEXICO'S GOVERNOR VOWED TO RESIST ANY EFFORT TO LOCATE SUCH A FACILITY IN NEW MEXICO WHILE CONCEDING THAT THE MESCALERO APACHES AS A SELFGOVERNING TRIBE HAVE THE RIGHT TO ENTER INTO SUCH A DEAL THE FEDERAL GOVERNMENT IS OBLIGATED TO BEGIN ACCEPTING SPENT RODS FROM UTILITIES IN FUTURE YEARS AND IT'S BEEN SEEKING TO ESTABLISH A SOCALLED MONITORED RETRIEVABLE STORAGE FACILITY SUCH A FACILITY WOULD ALLOW THE RADIOACTIVE FUEL TO BE STORED ON AN INTERIM BASIS UNTIL A PERMANENT DISPOSAL SITE IS DEVELOPED SOMETIME IN THE NEXT CENTURY BUT THE GOVERNMENT'S EFFORT IS BOGGED DOWN AND THE MESCALERO APACHES DECIDED TO EXPLORE A PRIVATE VENTURE AS A RESULT OF DELAYS TERMS OF THE TENTATIVE AGREEMENT WHICH ONE TRIBAL OFFICIAL DESCRIBED AS ANOTHER STEP ALONG OUR ROAD TO SELFSUFFICIENCY ARE STILL SUBJECT TO NEGOTIATION NSP SAID THE BUSINESSORIENTED MESCALERO APACHES ALREADY OPERATE A SKI RESORT A LARGE CATTLE HERD AND A LOGGING OPERATION ON THE RESERVATION LIKE OTHER UTILITIES WITH NUCLEAR PLANTS NORTHERN STATES NOW STORES MANY YEARS' WORTH OF USEDUP BUT STILL RADIOACTIVE FUEL RODS UNDERWATER IN SWIMMINGPOOLLIKE STRUCTURES ON THE SITE OF ITS PLANT THE POOLS WERE INTENDED TO BE ONLY A TEMPORARY HOLDING POINT FOR RODS THAT WOULD BE SHIPPED TO REPROCESSING SITES OR EXPECTED DISPOSAL BUT PLANS TO ESTABLISH REPROCESSING FACILITIES WERE CANCELED IN THE 1970S AND THE RODS THE PLANTS CONTINUE TO PRODUCE ARE STILL PUT IN THE TEMPORARY POOLS NSP IS SEEKING CLEARANCE BY THE END OF APRIL FROM MINNESOTA OFFICIALS TO STORE THE OLDER RODS FROM ITS PRAIRIE ISLAND PLANT IN ABOVEGROUND CASKS ON SITE THE COMPANY HOPES TO STORE THE CASKS AT THE MINNESOTA NUCLEAR FACILITY UNTIL ABOUT THE YEAR 2001 OR 2002 BY WHICH TIME THE NEW MEXICO FACILITY WOULD BE ABLE TO RECEIVE THEM IF THE UTILITY DOESN'T GET ADDITIONAL SPENTFUEL STORAGE FACILITIES THE COMPANY SAYS IT WILL HAVE TO BEGIN SHUTTING THE PLANT BEGINNING IN 1995 THE FACILITY REPRESENTS 20 OF THE COMPANY'S TOTAL GENERATING CAPACITY UNDER THE AGREEMENT WITH THE TRIBE THE UTILITIES THAT MAKE USE OF ITS STORAGE SITE WILL ASSUME RESPONSIBILITY AND LIABILITY FOR TRANSPORTING THE SPENT FUEL TO THE FACILITY AND WILL RETAIN OWNERSHIP OF THE FUEL WHILE IT'S STORED THERE 9402040112 940204 GE INVESTMENTS UNIT'S FUNDS FAIRFIELD CONN GENERAL ELECTRIC CO'S GE INVESTMENTS UNIT SAID IT AGREED TO SELL A LINE OF MUTUAL FUNDS THROUGH CROSSLAND SAVINGS SERVICES CORP A UNIT OF CROSSLAND SAVINGS THE AGREEMENT CALLS FOR THE BANK TO MAKE GE FUNDS AVAILABLE TO CUSTOMERS AT ITS 35 BRANCHES IN THE NEW YORK METROPOLITAN AREA THE UNIT WILL OFFER US EQUITY GLOBAL EQUITY TAXEXEMPT FIXEDINCOME STRATEGIC INVESTMENT AND MONEY MARKET MUTUAL FUNDS GE FUNDS ARE ALSO AVAILABLE THROUGH CHEMICAL BANK OF NEW YORK AND FOUNDERS NATIONAL TRUST BANK NAPLES FLA 9402040111 940204 PEPPERAND SALT MUST BE ADDRESSED I HUMBLY CRAVE I WAX MOROSE FIRMLY PLANTED 9402040110 940204 BUSINESS DELIVERS ANOTHER BLOW TO HEALTH PLAN CHAMBER OF COMMERCE CALLS MANDATES UNACCEPTABLE CLINTON ALLIES LASH OUT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US CHAMBER OF COMMERCE SCRAPPING FRIENDLIER TESTIMONY RELEASED ONLY HOURS BEFORE DELIVERED A BROADSIDE ON THE CLINTON HEALTH PLAN AND WARNED CONGRESS AGAINST EVEN USING THE BILL AS A STARTING POINT FOR FUTURE LEGISLATION THE STATEMENT CAME ON THE HEELS OF A BUSINESS ROUNDTABLE VOTE WEDNESDAY ALSO REBUFFING THE ADMINISTRATION PLAN A SENIOR CHAMBER OFFICIAL DESCRIBED THE TWIN ACTIONS AS A WAKEUP CALL TO THE PRESIDENT OF ERODING BUSINESS SUPPORT FOR HIS HEALTHCARE PLAN DEMOCRATS AND LABOR LEADERS REACTED WITH ANGER AFLCIO PRESIDENT LANE KIRKLAND ACCUSED BUSINESS OF CRACKING THE WHIP AND INVOKING CLASS SOLIDARITY PERHAPS THE MOST EMOTIONAL REACTION CAME FROM SEN JAY ROCKEFELLER D WVA WHO INTRODUCED HIMSELF AT A NEWS CONFERENCE AS JOHN D ROCKEFELLER IV AND PROCEEDED TO CASTIGATE THE BIG CORPORATE INTERESTS SO ASSOCIATED WITH HIS WEALTHY FAMILY I STAND BEFORE YOU TO SAY SHAME ON BIG BUSINESS' SAID MR ROCKEFELLER WHO SAVED HIS SHARPEST REBUKES FOR THE ROUNDTABLE AN ORGANIZATION OF CHIEF EXECUTIVE OFFICERS OF SOME OF THE NATION'S LARGEST CORPORATIONS THEY HAVE WALKED AWAY FROM THEIR WORKERS SAID MR ROCKEFELLER ADDING THAT THERE IS SPECIAL PLACE IN HELL FOR ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE CO OF AMERICA WHO HEADS THE ROUNDTABLE'S HEALTHPOLICY TASK FORCE THAT BROUGHT A STERN REBUKE FROM PRUDENTIAL I AM DISAPPOINTED A SENATOR OF HIS STATURE WOULD LEVEL SUCH A HARSH PERSONAL ATTACK ON OUR CHAIRMAN A PERSON OF OUTSTANDING INTEGRITY SIMPLY BECAUSE THEY DISAGREE OVER DIFFICULT PUBLICPOLICY ISSUES SAID JOSEPH VECCHIONE VICE PRESIDENT FOR PUBLIC RELATIONS AT PRUDENTIAL MUCH OF THE DEBATE COMES DOWN TO WHO WILL PAY FOR CHANGES IN THE HEALTHCARE SYSTEM BUSINESS INTERESTS ARE CLEARLY ALIGNING THEMSELVES WITH MORE CONSERVATIVE ALTERNATIVES THAT UNLIKE THE CLINTON PROPOSAL WOULDN'T REQUIRE EMPLOYERS TO HELP PAY THEIR WORKERS' HEALTH PREMIUMS THE TONE SET BY THE CHAMBER THE NATION'S LARGEST BUSINESS LOBBY GROUP WAS STRIKING SINCE THE ORGANIZATION HAD SENT THE HOUSE WAYS AND MEANS COMMITTEE ADVANCE TESTIMONY INDICATING THAT IT WAS OPEN TO EMPLOYER MANDATES IF THE EMPLOYER SHARE COULD BE PARED BACK TO ABOUT 50 OF THE COST OF COVERAGE THE ADMINISTRATION PROPOSES AN 80 EMPLOYER CONTRIBUTION WE ACCEPT THE PROPOSITION THAT EMPLOYERS SHOULD PROVIDE AND HELP PAY FOR INSURANCE ON A PHASEDIN BASIS OVER TIME SAID THE TEXT WHICH WAS DELIVERED IN ANTICIPATION OF A HEARING YESTERDAY MORNING WE SUGGEST THAT THE REQUIRED LEVEL OF CONTRIBUTION BE NO MORE THAN 50 AND APPLIED WITH REFERENCE TO LOWERCOST PLAN PREMIUMS WHEN ROBERT PATRICELLI CHAIRMAN OF THE CHAMBER'S HEALTH COMMITTEE APPEARED BEFORE THE WAYS AND MEANS COMMITTEE THIS LANGUAGE WAS GONE AND THE MESSAGE AND TONE WERE VERY DIFFERENT WE SPECIFICALLY CANNOT SUPPORT THE PRESIDENT'S HEALTH SECURITY ACT HE TOLD THE PANEL AFTER RECITING A LIST OF PERCEIVED FLAWS IN THE CLINTON PROPOSAL THE EXECUTIVE WARNED THE COMMITTEE AGAINST EVEN USING THE BILL AS ITS BASE TEXT IN DRAFTING LEGISLATION THIS SPRING THE CLINTON BILL FOR ONE CERTAINLY GIVES MANDATES A BAD NAME SAID MR PATRICELLI IF EMPLOYER MANDATES BECOME THE VEHICLE FOR THOSE WHO FAVOR THE TRAPPINGS OF A GOVERNMENTDOMINATED SYSTEM WE WILL NOT ACCEPT THOSE MANDATES WHILE THE CHAMBER REMAINS OPEN TO SOME COSTSHARING FORMULA THE ADMINISTRATION MUST PARE BACK ON OTHER ELEMENTS OF THE PLAN IF IT IS TO RESTORE BUSINESS SUPPORT FOR A COMMON FINANCING SCHEME MR PATRICELLI SAID HE SAID THE INITIAL TESTIMONY WAS A MISTAKE OF WELLMEANING CHAMBER STAFF WHO HADN'T CLEARED THE TEXT WITH TOP OFFICIALS BUT THIS EXPLANATION IS AT ODDS WITH THE CHAMBER'S REPUTATION AS A TIGHTLY CONTROLLED ORGANIZATION AND MANY OBSERVERS SAW THE NEW TOUGHER STATEMENT AS DESIGNED TO BUILD ON THE ROUNDTABLE VOTE WEDNESDAY EVENING REP FORTNEY PETE STARK D CALIF CHAIRMAN OF THE WAYS AND MEANS HEALTH SUBCOMMITTEE LIKENED THE CHAMBER TO A REPUBLICAN APOLOGIST SOCIETY AND MAJORITY LEADER RICHARD GEPHARDT D MO IS EXPECTED TO USE A SPEECH TODAY IN WASHINGTON TO ATTACK REPUBLICANS FOR A LONG HISTORY OF OPPOSING HEALTH REFORM PRESIDENT CLINTON FOR HIS PART YESTERDAY PLAYED DOWN THE ROUNDTABLE AND CHAMBER STATEMENTS I DON'T WANT TO MAKE TOO MUCH OF IT BECAUSE THE PEOPLE WHO CAME IN HERE TO SEE ME SAID IT WAS A NEGOTIATING STRATEGY HE SAID THIS IS THE BEGINNING OF WHAT WILL BE A PROTRACTED LEGISLATIVE DISCUSSION SOME BUSINESS PEOPLE SAID THEY WEREN'T HOPEFUL ABOUT NEGOTIATING WITH THE WHITE HOUSE IN AN INTERVIEW P ROY VAGELOS CHAIRMAN AND CHIEF EXECUTIVE OF MERCK & CO THE GIANT PHARMACEUTICAL CONCERN SAID WE WOULD LOVE TO WORK WITH THEM WE'VE TRIED REPEATEDLY TO GET WITH THEM UNFORTUNATELY WE'RE ALWAYS LEFT WITH THE FEELING IF WE'RE NOT SUPPORTIVE OF WHAT THEY WANT WE'LL BE EXCLUDED SO YOU'RE EITHER A SUPPORTER OR AN ENEMY WE'RE SORRY THEY FEEL THAT WAY REPLIED JEFF ELLER A WHITE HOUSE SPOKESMAN WE THINK THAT WE HAVE TRIED TO BE AS OPEN AS POSSIBLE WHILE AT THE SAME TIME BEING CONSISTENT WITH THE PRESIDENT'S GOALS WHICH INCLUDE COVERAGE FOR ALL AMERICANS WE WANT TO CONTINUE WE WANT A CONSTRUCTIVE DIALOGUE AMID THE RHETORIC TWO NEW STUDIES WERE ADDED TO THE HEALTHCARE DEBATE REPUBLICANS SAID THE FIRST A REPORT BY THE JOINT COMMITTEE ON TAXATION SUPPORTS THEIR CONCERNS THAT THE CLINTON PLAN'S PROPOSED EMPLOYER MANDATE WOULD BRING JOB AND WAGE LOSSES BUT THE OTHER A PRELIMINARY ANALYSIS BY GEORGE WASHINGTON UNIVERSITY'S CENTER FOR HEALTH POLICY RESEARCH SUGGESTS THAT LOWINCOME PEOPLE WOULD BE LEFT STRANDED WITHOUT THE REQUIRED EMPLOYER CONTRIBUTIONS UNDER THE PROPOSAL FAVORED BY THE ROUNDTABLE IT SAID A MOTHER WHO HAS TWO CHILDREN AND EARNS 23780 A YEAR WOULD HAVE TO BUDGET MORE THAN 15 OF HER INCOME FOR HEALTH INSURANCE PREMIUMS ALONE 9402040109 940204 PUSH FOR BANKING NATIONWIDE GAINS IN HOUSE SENATE BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ACTIONS IN THE HOUSE AND THE SENATE APPEARED TO REMOVE A TRADITIONAL OBSTACLE TO PASSAGE OF A NATIONWIDE BANKING BILL THE TOP LEGISLATIVE GOAL OF MANY OF THE NATION'S LARGEST BANKS A HOUSE BANKING COMMITTEE PANEL VOTED UNANIMOUSLY TO ALLOW BANKS TO ESTABLISH NATIONWIDE BRANCH SYSTEMS IN THE SENATE MEANWHILE SEN CHRISTOPHER DODD D CONN WITHDREW AN INSURANCE AMENDMENT THAT HAS BLOCKED PASSAGE OF NATIONWIDE BANKING IN THE PAST THE ACTIONS FOLLOW MONTHS OF LOBBYING BY LEADERS OF MAJOR BANK COMPANIES WHICH ARGUE THAT THE CREATION OF INTERSTATE BRANCH NETWORKS COULD SAVE THE INDUSTRY BILLIONS OF DOLLARS ANNUALLY BY ALLOWING THEM TO CONSOLIDATE OPERATIONS IN DIFFERENT STATES INTO UNIFIED NETWORKS PASSAGE OF SUCH A PLAN WOULD TRIGGER A WAVE OF ACQUISITIONS AS COMPANIES SUCH AS BANKAMERICA CORP AND NATIONSBANK CORP SCRAMBLE TO ESTABLISH CROSSCOUNTRY EMPIRES ACCELERATING THE CURRENT INDUSTRY CONSOLIDATION NATIONWIDE BRANCH NETWORKS WOULD MAKE IT EASIER FOR CONSUMERS AND BUSINESSES TO USE ONE BANK TO MEET ALL THEIR BANKING NEEDS NO MATTER WHERE THEY ARE IN THE COUNTRY FOR YEARS EFFORTS TO ALLOW THE CREATION OF NATIONWIDE BANKING NETWORKS HAVE FAILED BECAUSE INSURANCE AGENTS A POLITICALLY POWERFUL GROUP HAVE TRIED TO USE THE BILLS AS VEHICLES FOR LIMITS ON INSURANCE SALES BY BANKS THE ADDITION OF INSURANCE RESTRICTIONS TO PREVIOUS BILLS TURNED THE BANKING INDUSTRY AGAINST THE LEGISLATION BECAUSE BANKS WANT TO PRESERVE THEIR RIGHT TO SELL A WIDER RANGE OF FINANCIAL PRODUCTS SUCH AS INSURANCE AND MUTUAL FUNDS ALTHOUGH INSURANCE AND OTHER ISSUES COULD DERAIL THE BILL AS IT WORKS ITS WAY THROUGH CONGRESS THE CHANCES OF PASSAGE THIS YEAR ARE STRONGER THAN EVER YESTERDAY'S CONGRESSIONAL ACTION IS VERY GOOD FOR INTERSTATE IT OPENS UP THE POSSIBILITY OF PASSAGE SAID EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION IN THE HOUSE BANKING COMMITTEE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS VOTED 290 FOR AN INTERSTATE PLAN THE BILL AVOIDS ANY REFERENCE TO INSURANCE AND SUBCOMMITTEE CHAIRMAN STEPHEN NEAL D NC EXPRESSED CONFIDENCE THAT THE BILL WILL MAKE IT THROUGH THE FULL BANKING COMMITTEE AND THE HOUSE THE SENATE BANKING COMMITTEE IS SCHEDULED TO TAKE UP AN INTERSTATE BILL ON FEB 23 IN THE PAST SEN DODD HAS OFFERED AN AMENDMENT TO RESTRICT THE CURRENT ABILITY OF NATIONALLY CHARTERED BANKS TO SELL INSURANCE NATIONWIDE THROUGH UNITS IN SMALL TOWNS BUT IN A STATEMENT LAST NIGHT SEN DODD SAID HE WAS WITHDRAWING HIS INSURANCE AMENDMENT BECAUSE HE HADN'T BEEN ABLE TO WORK OUT A PLAN THAT COULD WIN SENATE PASSAGE WHILE I WILL CONTINUE TO SUPPORT LEGISLATION TO RATIONALIZE BANK SALES OF INSURANCE I DO NOT WANT TO HOLD UP INTERSTATE BRANCHING LEGISLATION HE SAID THE HOUSE BILL CONTAINS THE FOLLOWING PROVISIONS ONE YEAR AFTER ENACTMENT THE FEDERAL RESERVE BOARD WOULD BE ABLE TO ALLOW BANKHOLDING CONCERNS OR FOREIGN BANKS TO BUY BANKS ANYWHERE IN THE NATION EIGHTEEN MONTHS AFTER ENACTMENT A BANKHOLDING COMPANY WITH UNITS IN MORE THAN ONE STATE CAN CONSOLIDATE THEM INTO ONE SYSTEM THREE YEARS AFTER ENACTMENT AND EARLIER IF STATES AGREE THE COMPTROLLER OF THE CURRENCY WHICH REGULATES NATIONALLY CHARTERED BANKS MAY APPROVE THESE BANKS' APPLICATIONS TO ACQUIRE BANKS ACROSS STATE LINES A NUMBER OF CONSUMER AND OTHER AMENDMENTS STILL COULD END UP SLOWING OR BLOCKING PASSAGE OF THE LEGISLATION 9402040108 940204 GUNS AND BUTTER KHASHOGGI IS BACK ANGLING FOR A PROFIT FROM MIDEAST PEACE SAUDI ARMS DEALER TEAMS UP WITH AN ISRAELI PARTNER PUSHING INDUSTRIAL PLANS COVERING GAZA'S WATERFRONT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL SAVYON ISRAEL WHENEVER YAACOV NIMRODI STARTS TALKING ABOUT HIS LIFE'S ADVENTURES HIS BOYISH FACE LIGHTS UP SOON THE 67YEAROLD ISRAELI SPYTURNEDBUSINESSMAN IS BOUNDING ACROSS HIS STUDY TO THE MAHOGANY BOOKSHELVES PULLING DOWN OLD PHOTO ALBUMS HERE'S ADNAN AND ME IN ITALY DURING MY DAUGHTER'S HONEYMOON HE SAYS DISPLAYING A SNAPSHOT OF THE NIMRODI CLAN DINING LAST FALL WITH ADNAN KHASHOGGI THE SAUDI ARABIAN FINANCIER MR NIMRODI SMILES ADNAN IS A GREAT MAN HE SAYS HE LOVES PEACE HE LOVES ISRAEL ADNAN KHASHOGGI AND YAACOV NIMRODI THE ARMSDEALING DUO WHO HELPED BRING THE WORLD THE IRANCONTRA FIASCO ARE BACK POOLING THEIR CHUTZPAH AGAIN FOR A NEW ERA IN THE MIDEAST THIS TIME THE GUNRUNNERS WHO HAVE TRAVELED THE WORLD TARGETING A BUCK HAVE SWORN OFF THE BUSINESS OF DEATH INSTEAD THEY ARE PLOWING THEIR MONEY INTO PEACE MESSRS KHASHOGGI AND NIMRODI ARE ANGLING TO BECOME THE LEADING INDUSTRIALISTS IN THE GAZA STRIP AFTER ISRAEL'S ANTICIPATED WITHDRAWAL LATER THIS YEAR THEIR PLANS COVER THE WATERFRONT IN THE WORKS ARE A TELECOMMUNICATIONS SYSTEM ELECTRICPOWER GENERATOR DESALINIZATION PLANT PIPE FACTORY A MUSLIMPILGRIMAGE COMPANY INVESTMENT BANK RAILROAD EVEN AN AIRLINE IN ALL MR NIMRODI SAYS THE INVESTMENTS COULD REACH 500 MILLION THE COMRADESINARMS AREN'T EQUAL PARTNERS IN EVERY PLANNED VENTURE SOME OF THE PROJECTS ARE TAKING SHAPE ABOARD THE PERIPATETIC MR KHASHOGGI'S DC9 JET WHILE OTHERS ARE EVOLVING HERE IN MR NIMRODI'S GATSBYESQUE MANSION NEAR TEL AVIV BUT THE TWO ADVENTURERS ARE WORKING WITH EACH OTHER AND WITH THE WORLD BANK TO FORM SEVERAL LARGE INDUSTRIAL COMPANIES THAT WOULD BE OWNED BY ISRAELI PALESTINIAN AND OTHER ARAB INVESTORS THIS ISN'T CHARITY WE'RE FULLY PROFITORIENTED THE 58YEAROLD MR KHASHOGGI SAYS IN HIS PARIS TOWNHOUSE WITH HIS US BANKRUPTCY PROBLEMS BEHIND HIM MR KHASHOGGI SAYS HE IS FOCUSING ON RUSSIA IRAN AND THE MIDEAST IN THE PAST TWO YEARS HE SAYS HE HAS MADE NEARLY 3 MILLION ON THE TEL AVIV STOCK EXCHANGE IF WE CAN HELP THE PALESTINIANS TODAY HE SAYS WE'LL PROFIT LATER ON MR KHASHOGGI SAYS HE HAS BEEN SECRETLY SOWING SEEDS IN ISRAEL FOR YEARS AS FAR BACK AS 1967 THE CONFIDANT OF SAUDI KINGS OPENED CLANDESTINE LINKS WITH WESTERN JEWS MOSSAD AGENTS AND ISRAELI POLITICIANS IN AN EFFORT TO BRIDGE THE ARABISRAELI DIVIDE THE CONTACTS WERE A RISKY BREACH OF THE ARAB BOYCOTT OF ISRAEL BUT NOW THAT PEACE SEEMS AT HAND MR KHASHOGGI IS EMERGING FROM THE SHADOWS MY ROLE HAS ALWAYS BEEN A SOFT ONE HE SAYS I WAS JUST OPENING DOORS THE KHASHOGGI VISION IS SIMPLE FORGE PEACE THROUGH COMMERCE ADNAN HAS ALWAYS HAD THIS NOTION OF MARRYING THE ENERGY AND BUSINESS ACUMEN OF THE ISRAELI WITH THE CAPITAL OF THE ARAB WORLD SAYS KENNETH BIALKIN THE FINANCIER'S LONGTIME US LAWYER AND A PARTNER IN THE NEW YORK FIRM OF SKADDEN ARPS SLATE MEAGHER & FLOM AS A FORMER CHAIRMAN OF THE CONFERENCE OF PRESIDENTS OF MAJOR AMERICAN JEWISH ORGANIZATIONS MR BIALKIN HAS INTRODUCED MR KHASHOGGI TO MANY POWERFUL ISRAELIS OVER THE YEARS HE HAS ALWAYS SAID IN A JOCULAR WAY THAT IF WE CAN'T MAKE PEACE PERHAPS WE CAN MAKE MONEY MR BIALKIN SAYS THAT IS NAIVE SAYS NASSER NASHASHIBI SCION OF ONE OF JERUSALEM'S OLDEST PALESTINIAN FAMILIES AND A PAL OF THE SAUDI I KNOW MR KHASHOGGI'S CONCEPT OF PEACE IS THAT BUSINESS HAS NO NATIONALITY MR NASHASHIBI SAYS BUT HE ISN'T MATURE POLITICALLY IF HE ACCEPTS ANY ADVICE FROM ME IT'S TO REMEMBER HE'S A MUSLIM AND AN ARAB DON'T RUSH INTO BUSINESS AND LOSE FRIENDS TO WIN ENEMIES THERE ARE ISRAELIS WHO WOULD GIVE YAACOV NIMRODI THE SAME ADVICE BORN IN BAGHDAD AND RAISED IN JERUSALEM MR NIMRODI BECAME ONE OF THE YOUNG JEWISH STATE'S MOST GIFTED SPYMASTERS IN INTELLIGENCE CIRCLES HE IS LEGENDARY FOR HIS MASTERY OF THE LANGUAGE AND MANNERISMS OF ARABS AND PERSIANS SKILLS HE USED TO RECRUIT SOME OF ISRAEL'S BEST SPIES IN THE MID1950S MR NIMRODI WAS SENT TO TEHRAN AS ISRAEL'S SECRET MILITARY ATTACHE TO IRAN THOUGH ISRAEL AND IRAN HAD NO FORMAL DIPLOMATIC TIES THE YOUNG COLONEL REMAINED IN TEHRAN FOR 24 YEARS THE FIRST 14 FOR ISRAEL THE LAST 10 FOR HIMSELF HE BUILT THE SHAH'S INTELLIGENCE AGENCY WHILE EARNING HUGE COMMISSIONS ON SOME 250 MILLION A YEAR IN ARMS SALES TO IRAN THAT IS HOW HE GOT TO KNOW MR KHASHOGGI WHO AMASSED AND LATER SPENT ONE OF THE WORLD'S BIGGEST FORTUNES BY BROKERING ARMS TO SAUDI ARABIA THEY MET IN PARIS IN 1975 THE RENDEZVOUS WAS ARRANGED BY THE LATE HERMAN HANK GREENSPUN PUBLISHER OF THE LAS VEGAS SUN NEWSPAPER AND A HERO IN ISRAEL FOR SMUGGLING GUNS TO THE JEWISH STATE IN ITS WAR OF INDEPENDENCE IN 1948 MR GREENSPUN KNEW MR KHASHOGGI THROUGH EUGENE WARNER ANOTHER JEWISH ACTIVIST IN LAS VEGAS AND AN ADVISER TO THE SAUDI TYCOON MR WARNER WHO LIVES AT THE SANDS HOTEL & CASINO IN LAS VEGAS DIDN'T RETURN PHONE CALLS FOR THIS ARTICLE BUT MR KHASHOGGI SAYS HE MET MR WARNER IN 1958 ON A VISIT TO NEVADA AS A GUEST OF HOWARD HUGHES HE DESCRIBES MR WARNER AS MY LAS VEGAS REALESTATE AGENT ASSOCIATES OF BOTH MEN SAY MR WARNER TRAVELED WIDELY WITH MR KHASHOGGI FOR DECADES INCLUDING MANY TRIPS TO SAUDI ARABIA WHERE JEWS ARE LEGALLY BARRED SAUDI ARABIA ALSO FORBIDS ITS CITIZENS TO DO BUSINESS WITH ISRAEL WITH MR WARNER THE SAUDI MET OTHER PROMINENT JEWS AND ISRAELIS ALL THESE JEWISH FRIENDS OF MINE ENDORSED ME TO THE ISRAELIS MR KHASHOGGI EXPLAINS SO THEY WOULDN'T FEAR ME AT THEIR 1975 INTRODUCTION MESSRS KHASHOGGI AND NIMRODI WERE JOINED BY ADOLPH AL SCHWIMMER THE ISRAELIAMERICAN FOUNDER OF ISRAEL AIRCRAFT INDUSTRIES THE COUNTRY'S BIGGEST DEFENSE CONTRACTOR A DECADE LATER MR SCHWIMMER WOULD PARTICIPATE WITH THEM IN THE IRANCONTRA AFFAIR AT THE PARIS MEETING THEY DISCUSSED WAYS OF OPENING LINKS BETWEEN ISRAEL AND SAUDI ARABIA AND MR KHASHOGGI WHO WAS CLOSE TO ANWAR ALSADAT CONVEYED THE EGYPTIAN PRESIDENT'S READINESS FOR PEACE WITH ISRAEL MR SCHWIMMER DECLINES TO COMMENT ACCORDING TO ARABS AND ISRAELIS WHO KNOW BOTH MEN MESSRS KHASHOGGI AND NIMRODI ARRANGED ARMS TRANSACTIONS LONG BEFORE THE FIRST IRANCONTRA DEAL IN 1985 BOTH OF THEM HOWEVER NOW DENY THIS THEY DABBLED IN DIPLOMACY AS EGYPT AND ISRAEL WERE NEGOTIATING PEACE IN THE LATE 1970S MR KHASHOGGI FLOATED A PROPOSAL BY KING FAHD THEN THE SAUDI CROWN PRINCE FOR PEACE WITH ISRAEL IN EXCHANGE FOR SAUDI CONTROL OF THE MUSLIM HOLY SITES IN JERUSALEM AS AN ADDED INCENTIVE SAYS MR NIMRODI THE SAUDIS DANGLED SOME 100 BILLION OF INVESTMENT CAPITAL FOR THE REGION TO UNDERWRITE DEVELOPMENT MR NIMRODI TOOK THE OFFER TO ISRAELI PRIME MINISTER MENACHEM BEGIN WHO DISCUSSED IT WITH MR KHASHOGGI IN NEW YORK MR KHASHOGGI RECALLS THAT MR BEGIN WHO DIED IN 1992 TOLD ME THAT BEFORE WE COULD TALK ABOUT JERUSALEM WE NEEDED TO MAKE TOTAL PEACE I SAID SIR PART OF TOTAL PEACE IS TO FLY THE SAUDI FLAG OVER THE MOSQUES' HE DIDN'T BUY IT HE LECTURED ME FOR 2 1/2 HOURS ON THE HISTORY OF THE JEWS AND SAID JERUSALEM WASN'T FOR SALE THE PLOTS THICKENED ACCORDING TO MR NIMRODI IN 1981 AFTER MANY FORTUNES WERE WIPED OUT IN THE IRANIAN REVOLUTION MESSRS KHASHOGGI NIMRODI AND SCHWIMMER DECIDED TO OVERTHROW AYATOLLAH RUHOLLAH KHOMEINI IN MOROCCO MESSRS NIMRODI AND KHASHOGGI SAY THEY RECRUITED THE LATE SHAH'S SON PRINCE REZA PAHLAVI TO LEAD THE EFFORT THE MERCENARIES WOULD BE FUNDED BY RIYADH ARMED BY ISRAEL AND TRAINED IN SUDAN ACCORDING TO MR NIMRODI THERE FOLLOWED A GATHERING AT MR KHASHOGGI'S SAFARI RANCH IN SOUTHERN KENYA IN MAY 1982 ALONG WITH MESSRS NIMRODI AND SCHWIMMER CAME ARIEL SHARON THEN ISRAELI DEFENSE MINISTER AND DAVID KIMCHE THEN DIRECTOR GENERAL OF ISRAEL'S FOREIGN MINISTRY AND LATER A KEY ISRAELI REPRESENTATIVE IN THE IRANCONTRA AFFAIR MR KHASHOGGI SAYS HE HAD KNOWN MR KIMCHE FROM THE ISRAELI'S DAYS AS A MOSSAD AGENT IN PARIS IN THE 1960S MR KHASHOGGI BROUGHT ALONG SUDANESE PRESIDENT GAFAAR NUMEIRI WHO HAS SINCE BEEN DEPOSED ACCORDING TO MR NIMRODI EVERYTHING WAS SET MR SHARON AGREED TO PROVIDE SURPLUS ISRAELI WEAPONRY FOR AS MUCH AS 1 BILLION BEING OFFERED BY SAUDI ARABIA THE SUDANESE PRESIDENT WAS HAPPY TO HOST THE GUERRILLAS IN EXCHANGE FOR CASH AND ISRAELI HELP IN CONTAINING LIBYAN LEADER MOAMMAR GADHAFI THE CENTRAL INTELLIGENCE AGENCY WHICH WAS KEPT ABREAST OF THE PLAN DIDN'T INTERFERE MR NIMRODI SAYS THE CIA DECLINES TO COMMENT BUT THE MOSSAD INTELLIGENCE SERVICE DESPITE DEFENSE MINISTER SHARON'S INVOLVEMENT ULTIMATELY KILLED THE SCHEME THE MOSSAD HAD CONCLUDED IN THIS AND OTHER CASES THAT IT WAS NOT A GOOD IDEA TO TRUST ARABS EXPLAIN AUTHORS DAN RAVIV AND YOSSI MELMAN IN THEIR 1990 BOOK EVERY SPY A PRINCE YITZHAK HOFI THE MOSSAD'S CHIEF AT THE TIME RESENTED THE ENCROACHMENT ON HIS TURF BY MESSRS KHASHOGGI AND NIMRODI AND SENT WORD TO THE BABY SHAH AS THE PRINCE WAS KNOWN NOT TO WORK WITH THEM THE AUTHORS WRITE THE KENYA MEETING PROVED INSTRUMENTAL HOWEVER IN ISRAEL'S EVACUATION OF THOUSANDS OF FAMINESTRICKEN JEWS FROM ETHIOPIA THANKS TO MR SHARON'S REQUEST TO MR NUMEIRI MANY JEWS WERE AIRLIFTED TO ISRAEL FROM SUDAN'S CAPITAL KHARTOUM MR SHARON AND MR KIMCHE WERE TRAVELING AND COULDN'T BE REACHED FOR COMMENT IN 1984 WHEN WORD BROKE ABOUT THE RESCUE OPERATION YASSER ARAFAT LEADER OF THE PALESTINE LIBERATION ORGANIZATION WAS ANGRY AT MR KHASHOGGI FOR HELPING ISRAEL SO THE SAUDI TYCOON WHO HAD NEVER MET MR ARAFAT PAID HIM A VISIT I WALKED INTO HIS OFFICE AND YASSER WAS WEARING HIS GUN SO I SAID SHOOT ME' MR KHASHOGGI SAYS WE LAUGHED AND KISSED FOR THE NEXT SEVERAL MONTHS MR KHASHOGGI SAYS HE CARRIED PEACE FEELERS BETWEEN MR ARAFAT AND SHIMON PERES ISRAEL'S PRIME MINISTER AT THE TIME THE CONTACTS DIDN'T GO ANYWHERE BUT MR KHASHOGGI'S RAPPORT WITH MR PERES WHOM HE HAD KNOWN THROUGH MR SCHWIMMER WOULD BE CRUCIAL IN THE NEXT ADVENTURE TRADING ARMS FOR HOSTAGES WITH IRAN THE IRANCONTRA ESCAPADE STRAINED THE LONG KHASHOGGINIMRODI RELATIONSHIP THOUGH MR KHASHOGGI HAD INTRODUCED IRANIAN MIDDLEMAN MANUCHER GHORBANIFAR TO THE ISRAELIS AND PROVIDED BRIDGE LOANS FOR THE SECRET WEAPONS DEALS HE AND HIS OUTSIDE PARTNERS LOST AT LEAST 7 MILLION IN THE FIASCO ACCORDING TO THE FINAL REPORT OF SPECIAL PROSECUTOR LAWRENCE WALSH MUCH OF THEIR MONEY WAS DIVERTED TO NICARAGUA'S REBELS WHO WERE TRYING TO OUST THE SANDINISTA GOVERNMENT BY LT COL OLIVER NORTH MR WALSH CONCLUDED BY 1988 AFTER MR KHASHOGGI'S TRIAD AMERICAN CORP HAD COLLAPSED THE SAUDIISRAELI MACHINATIONS WERE BACK ON MR KHASHOGGI AGREED TO MEET IN LONDON WITH MEYER KAPLAN A NIMRODI PROTEGE WHO WAS STARTING A COMPANY TO BRING MUSLIM PILGRIMS TO JERUSALEM BRAINSTORMING TOGETHER MR KHASHOGGI ADVISED MR KAPLAN THAT ISRAEL'S CHIEF RABBI SHOULD INVITE MOROCCO'S KING HASSAN II A NOTED ARAB MODERATE TO JERUSALEM TO PRAY MR KHASHOGGI ALSO HELPED OPEN CONTACTS FOR THE ISRAELI WITH TOURISM OFFICIALS IN JORDAN AND OFFERED TO INVEST 1 MILLION IN THE ENTERPRISE HIMSELF THE MONEY HOWEVER STILL HASN'T ARRIVED IN JERUSALEM NOR HAS KING HASSAN II ADNAN IS BRILLIANT HE PENETRATES TO THE HEART OF THE PROBLEM BETWEEN MUSLIM AND JEW SAYS MR KAPLAN A RETIRED ISRAELI POLICE DETECTIVE AND HEAD OF MR NIMRODI'S ZIARA INTERNATIONAL THE INTIFADA OR PALESTINIAN UPRISING BRED STILL MORE KHASHOGGI INITIATIVES IN 1989 AT THE HEIGHT OF THE REBELLION MR KHASHOGGI PROPOSED THAT ISRAEL SIMPLY ABANDON THE GAZA STRIP HE AND SOME ARAB BACKERS WOULD STEP IN AND WITH 20 BILLION OR SO TURN THE SWATH OF SAND DUNES AND REFUGEE CAMPS INTO A CROSS BETWEEN LAS VEGAS AND HONG KONG MR KHASHOGGI DISCUSSED THE PLAN IN PARIS WITH MR SHARON THEN ISRAEL'S HOUSING MINISTER I TOLD HIM THE ONLY SOLUTION FOR GAZA WAS TO WALK OUT MR KHASHOGGI RECALLS LET THE ARABS WORRY ABOUT IT WITH ISRAELI PRIME MINISTER YITZHAK SHAMIR'S KNOWLEDGE MR NIMRODI EXPLORED THE CONCEPT FURTHER WITH BASSAM ABU SHERIF A CLOSE PLO ASSOCIATE OF MR ARAFAT THOUGH THE PERSIAN GULF WAR SPECIFICALLY SAUDI ANGER AT THE PLO FOR SYMPATHIZING WITH IRAQ KILLED THE PROPOSAL MESSRS KHASHOGGI AND NIMRODI TAKE CREDIT FOR LEADING THE WAY TO LAST SEPTEMBER'S AGREEMENT CALLING FOR ISRAEL'S EVENTUAL WITHDRAWAL FROM THE GAZA STRIP AND THE CITY OF JERICHO THIS WAS THE BEGINNING OF WHAT I CALL THE OPENING OF THE ISRAELI MIND MR KHASHOGGI SAYS ADDS MR NIMRODI ARAFAT AND RABIN TOOK THE GAZA IDEA FROM US AFTER THE GULF WAR AND THE MIDEAST PEACE CONFERENCE IN MADRID THE PACE QUICKENED MR KHASHOGGI BEGAN INVESTING HEAVILY IN ISRAELI STOCKS HE TRIED TO ORGANIZE A VISIT TO JERUSALEM BY 100 SAUDIS BUT WAS STYMIED BY JORDAN'S KING HUSSEIN A BOARDINGSCHOOL CLASSMATE WHO WOULDN'T LET THE GROUP TRAVEL THROUGH AMMAN LAST YEAR AFTER ENGINEERING COL GADHAFI'S 307 MILLION INVESTMENT IN A CHAIN OF LONHRO PLC HOTELS MR KHASHOGGI PERSUADED THE LIBYAN LEADER TO SEND 200 MUSLIM PILGRIMS TO JERUSALEM VIA MR NIMRODI'S COMPANY COL GADHAFI HOPED THE GESTURE WOULD ERODE HIS INTERNATIONAL ISOLATION CAUSED BY THE 1988 PAN AM JET BOMBING OVER LOCKERBIE SCOTLAND IN WHICH 270 PEOPLE WERE KILLED BUT THE TRIP BACKFIRED AMID A SWIRL OF ISRAELI PALESTINIAN AND LIBYAN RECRIMINATIONS GADHAFI'S A FRIEND OF THE PEACE PROCESS MR KHASHOGGI CONTENDS THEIR GAZA BUSINESS PLANS BEGAN CHURNING NEARLY A YEAR AGO MONTHS BEFORE THE ISRAELIPLO AGREEMENT WAS SIGNED MR NIMRODI PROPOSED TO HIS OLD FRIEND THAT THEY BUILD A 25 MILLION FACTORY TO PRODUCE HIGHCAPACITY WATER AND SEWAGE PIPE FOR EXPORT THROUGHOUT THE MIDEAST PARTICULARLY LIBYA THE PARTNERS CREATED A THREEWAY JOINT VENTURE WITH AN ITALIAN PIPEMAKER AND GOT THE ISRAELI GOVERNMENT TO RELEASE 38 ACRES OF LAND FOR THE PLANT ON THE EDGE OF THE GAZA STRIP LAST FALL MR KHASHOGGI MET WITH ISRAEL'S ECONOMIC MINISTER SHIMON SHETREET IN GENEVA TO DISCUSS THE PLAN GROUNDBREAKING IS SCHEDULED IN SIX MONTHS 500 GAZA ARABS ARE EXPECTED TO WORK IN THE PLANT THAT IS JUST FOR STARTERS MR KHASHOGGI'S THIRD WIFE 29YEAROLD SHAPURI A COUSIN OF THE LATE SHAH OF IRAN HAS COLLECTED 15 MILLION TO BUILD A CHILDREN'S HOSPITAL IN THE GAZA STRIP SHE RECENTLY VISITED ISRAEL TO MAKE CONTACTS MR KHASHOGGI HIMSELF IS RAISING CAPITAL FOR AN ARABISRAELI INVESTMENT BANK AND MR NIMRODI RECENTLY VISITED KUWAIT ON A NONISRAELI PASSPORT HE SAYS TO BUY A 10 STAKE IN SHOROUK AIRLINES A KUWAITIEGYPTIAN VENTURE THAT PLANS TO FLY TO JERUSALEM FROM CAIRO AND KUWAIT NEXT UP MESSRS NIMRODI AND KHASHOGGI HAVE SUBMITTED A PROPOSAL TO THE PLO AND WORLD BANK FOR A 60 MILLION GENERATOR TO HANDLE GAZA'S ELECTRICITY NEEDS AND TO POWER A DESALINIZATION PLANT THAT WOULD SUPPLY WATER FOR ONE MILLION PEOPLE MR NIMRODI WHO OWNS A DESALINIZATIONTECHNOLOGY COMPANY IN ISRAEL HAS BEEN DEVELOPING THE PROJECT FOR YEARS ADNAN AND ME WE KNOW HOW TO GET MONEY WE HAVE THE RIGHT CONNECTIONS WE CAN DEVELOP THE ECONOMY TO PUT ARABS AND JEWS TO WORK MR NIMRODI GUSHES MR KHASHOGGI REMAINS A LITTLE MORE COY I DON'T WANT THIS IMPRESSION TO BE LEFT THAT BECAUSE I'M DOING ONE OR TWO TRANSACTIONS WITH YAACOV HE'S MY ONLY AGENT HE SAYS I KNOW LOTS OF ISRAELIS 9402040107 940204 BROKERS RETURNING TO PROGRAM TRADING ON THEIR ACCOUNTS NEW YORK PERHAPS WALL STREET BROKERAGE FIRMS AREN'T AS SHY ABOUT PROGRAM TRADING AS THEY HAD BEEN IN A REVERSAL OF THE TREND SINCE THE 1987 STOCKMARKET CRASH MOST OF THE COMPUTERAIDED PROGRAM TRADING DONE LAST WEEK ON THE NEW YORK STOCK EXCHANGE WAS BY BIG BOARD BROKERAGE FIRMS TRADING FOR THEIR OWN ACCOUNTS RATHER THAN FOR CUSTOMERS IN ITS REGULAR WEEKLY REPORT THE BIG BOARD SAID 588 OF LAST WEEK'S PROGRAM TRADING WAS FOR THE FIRMS' OWN ACCOUNTS OR AS PRINCIPAL THE AVERAGE WAS 445 FOR ALL OF 1993 AND IT WASN'T A CASE OF A SINGLE FIRM THROWING OFF THE AVERAGE ALL FIVE OF THE MOSTACTIVE PROGRAM TRADING FIRMS FOR THE WEEK ENDED JAN 28 EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS THE BIG BOARD SAID THESE FIRMS WERE MORGAN STANLEY GROUP INC WHICH HAS SAID PREVIOUSLY THAT ITS PROGRAMTRADING OPERATION IS GEARED MAINLY FOR CUSTOMERS SUSQUEHANNA INVESTMENT GROUP UBS SECURITIES CS HOLDING AG'S CS FIRST BOSTON INC AND COOPER NEFF & ASSOCIATES TRADERS COULDN'T REMEMBER A RECENT WEEK WHEN ALL FIVE MOSTACTIVE FIRMS TRADED MOSTLY FOR THEIR OWN ACCOUNTS PROGRAM TRADING IS THE RAPID COMPUTERAIDED TRADING OF LONG LISTS OF STOCKS OFFICIALLY AT LEAST 15 STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE THE ACTIVITY HIT A RECORD 119 OF OVERALL BIG BOARD VOLUME LAST YEAR UNLESS THIS IS A ONEWEEK ABERRATION THE STATISTICS SUGGEST THAT WALL STREET BROKERAGE FIRMS AREN'T AS SENSITIVE TO THE CONTROVERSY OVER PROGRAM TRADING AS THEY WERE AFTER THE CRASH WHEN MANY CURTAILED THEIR PRINCIPAL TRADING AND OTHERS CEASED TRADING ENTIRELY 9402040106 940204 POLITICS & POLICY DETAILS OF PLAN TO REVISE SUPERFUND LAW ARE SPELLED OUT DRAW MIXED REVIEWS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED ITS PLAN FOR REWRITING THE SUPERFUND LAW TO MIXED REVIEWS FROM MEMBERS OF CONGRESS ENVIRONMENTALISTS AND INDUSTRY THE PROPOSAL ANNOUNCED YESTERDAY BY CAROL BROWNER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY INCLUDES A NEW NONJUDICIAL ARBITRATION PROCESS AIMED AT REMOVING SUPERFUND DISPUTES FROM THE COURTS A NEW TAX ON COMMERCIAL INSURANCE COMPANIES SET TO RAISE 31 BILLION OVER FIVE YEARS TO BE USED TO SETTLE SUPERFUNDRELATED LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS AND A RELAXATION OF CLEANUP STANDARDS UNDER CERTAIN CONDITIONS WHICH THE ADMINISTRATION CONTENDS WILL REDUCE CLEANUP COSTS AS MUCH AS 25 THE KEY DEMOCRATIC LEADERS ON THE ISSUE AGREED TO SPONSOR OR COSPONSOR THE ADMINISTRATION'S BILL THOUGH IT IS EXPECTED THEY WILL WORK TO CHANGE SOME OF IT ONE OF THEM REP AL SWIFT D WASH CALLED THE BILL A GOOD BEGINNING REACTION BY BUSINESS AND ENVIRONMENTALISTS WAS SIMILARLY AMBIVALENT WITH BUSINESSES GENERALLY HOPING TO REDUCE THE LIABILITY OF INDIVIDUAL COMPANIES EVEN FURTHER AND ENVIRONMENTALISTS HOPING TO SHORE UP THE POLLUTERPAYS PRINCIPLE BEHIND THE SUPERFUND AND TO STIFFEN THE BILL'S CLEANUP REQUIREMENTS MAIN FEATURES OF THE PROPOSAL HAD BEEN DISCLOSED PREVIOUSLY BUT YESTERDAY'S ANNOUNCEMENT GAVE MORE DETAILS ON THE PROPOSED TAX ON INSURERS WHICH WOULD BE BASED ON PREMIUMS CHARGED ON COMMERCIAL POLICIES SINCE 1971 THE ADMINISTRATION HOPES THE BILL WILL AT LEAST HALVE THE LITIGATION RELATED TO THE 1980 SUPERFUND LAW WHICH GOVERNS CLEANUP OF ABANDONED HAZARDOUSWASTE SITES THE MONEY RAISED FROM THE NEW INSURANCE TAX WOULD BE USED TO SETTLE LAWSUITS FILED AGAINST INSURERS BY POLLUTING COMPANIES HELD LIABLE FOR SUPERFUND CLEANUP COSTS PRIOR TO 1986 WHEN THE BULK OF DUMPING SUBJECT TO THE SUPERFUND LAW OCCURRED LITIGATION COSTS PAID BY INSURERS REPRESENT ROUGHLY ONETHIRD OF ALL SUPERFUND LITIGATION COSTS BOTH LEVIES COULD BE DEDUCTED BY INSURERS AS A BUSINESS EXPENSE AND COMPANIES THAT COULD DEMONSTRATE THEY'VE WRITTEN FEW POLICIES RELATED TO SUPERFUND WOULD BE EXEMPT UNDER THE BILL THE EPA WOULD CREATE A 300 MILLION FUND TO PICK UP SOCALLED ORPHAN SHARES OR PORTIONS OF SUPERFUND CLEANUP COSTS THAT AREN'T ASSIGNED TO A PARTICULAR COMPANY AN EPA OFFICIAL SAID THAT THE MONEY WOULD COME FROM A SURPLUS IN REVENUE FROM AN EXISTING SUPERFUND TAX ON BUSINESSES UNDER THE NEW ALLOCATION SYSTEM A NONGOVERNMENTAL PARTY SUCH AS A NONPROFIT GROUP WOULD ASSIGN SUPERFUND CLEANUP COSTS AMONG BUSINESSES THAT POLLUTED AT A HAZARDOUSWASTE SITE IF A BUSINESS AGREED TO PAY THE AMOUNT REQUESTED IT COULDN'T BE SUED BY OTHER COMPANIES THAT CONTRIBUTED WASTE TO THE SITE AND SOUGHT TO SHIFT CLEANUP COSTS ELSEWHERE IF THE BUSINESS DIDN'T AGREE TO PAY THE AMOUNT REQUESTED IT COULD BE SUED BY THE OTHER COMPANIES AND THE FEDERAL GOVERNMENT COULD HOLD THE COMPANY RESPONSIBLE FOR THE ENTIRE COST OF CLEANING UP THE SITE POLLUTING BUSINESSES THAT CHOSE TO SETTLE SUPERFUND LAWSUITS WITH THEIR INSURERS DRAWING ON THE 31 BILLION FUND WOULD RECEIVE 20 40 OR 60 OF CLEANUP COSTS DEPENDING ON WHETHER THE LAW IN THE STATE WHERE THE LAWSUIT WAS FILED FAVORED THE INSURER FAVORED NEITHER SIDE OR FAVORED THE POLLUTING BUSINESS A COMPANY THAT RECEIVED A GIVEN PERCENTAGE IN ONE SUPERFUNDRELATED LAWSUIT AGAINST AN INSURER WOULD ALSO BE PLEDGING TO ACCEPT THE SAME PERCENTAGE TO SETTLE ANY FUTURE SUPERFUNDRELATED DISPUTES WITH INSURERS MIKE MCGAVICK DIRECTOR OF THE AMERICAN INSURANCE ASSOCIATION'S SUPERFUND PROJECT WHO HELPED THE ADMINISTRATION CRAFT THE BILL SAID WITH PROPER MODIFICATION THIS COULD BE A GENUINE STEP FORWARD SIMILARLY FRED KRUPP EXECUTIVE DIRECTOR OF THE ENVIRONMENTAL DEFENSE FUND WHICH ALSO PARTICIPATED IN ADMINISTRATION DISCUSSIONS ON THE BILL SAID HIS GROUP IS GREATLY ENCOURAGED BY THE OVERALL STRUCTURE BUT WOULD PRESS FOR STRENGTHENING IMPROVEMENTS THE SIERRA CLUB HOWEVER TERMED THE SUPERFUND PROPOSAL A MAJOR RETREAT THAT WOULD SHIFT COSTS FROM POLLUTERS TO THE GOVERNMENT WITH NO NEW REVENUE TO PAY FOR IT 9402040105 940204 BMW LIKELY TO POST LOWER ANNUAL PROFIT BOARD MEMBER SAYS SPECIAL TO THE WALL STREET JOURNAL DUESSELDORF GERMANY LUXURY AUTOMAKER BAYERISCHE MOTOREN WERKE AG IS LIKELY TO REPORT 1993 EARNINGS THAT ARE MORE THAN DOUBLE THE SIXMONTH NET INCOME OF 255 MILLION MARKS 1471 MILLION A BMW BOARD MEMBER SAID THAT RESULT WOULD STILL BE LOWER THAN 1992 EARNINGS HOWEVER WHICH TOTALED 726 MILLION MARKS FULL 1993 RESULTS ARE DUE TO BE RELEASED IN MARCH COMMENTING ON BMW'S BIG ACQUISITION ANNOUNCED EARLIER THIS WEEK THE BOARD MEMBER HORST TELTSCHIK SAID BMW'S 80 PURCHASE OF BRITISH AUTO MAKER ROVER GROUP LTD WILL HELP BMW SAVE RESEARCHANDDEVELOPMENT COSTS AND STRENGTHEN ITS POSITION IN WORLD MARKETS MR TELTSCHIK ALSO SAID THAT WITH ROVER BMW HAS IMMEDIATE ACCESS TO TECHNOLOGY FOR FRONTWHEEL AND FOURWHEEL DRIVE LEADING TO RESEARCH AND DEVELOPMENT COST SAVINGS IN THOSE SPECIFIC AREAS UNDER A PREEXISTING AGREEMENT BMW ALREADY HAD PLANNED TO SUPPLY A LINE OF ROVER VEHICLES WITH A DIESEL MOTOR MR TELTSCHIK SAID 9402040104 940204 ECONOMY SOUTHEAST SCORES VIA MANUFACTURING MIX UNIQUE BLEND YIELDS GROWTH ON US HOUSING BOOM BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA LAST FRIDAY THE COMMERCE DEPARTMENT PRONOUNCED THE NATION'S ECONOMY STRONGER THAN AT ANY POINT SINCE LATE 1987 NO ONE HAD TO TELL THE SOUTHEAST THINGS ARE SO GOOD RIGHT NOW THAT I DON'T EVEN WANT TO TALK ABOUT IT SAYS JIM DIFFEE PRESIDENT OF BROOKWOOD FURNITURE CO IN PONTOTOC MISS FOR THE PAST 18 MONTHS HE SAYS BROOKWOOD WHICH MAKES SOFAS LOVE SEATS AND CHAIRS FOR HOMEFURNITURE COMPANIES HAS BEEN GOING LIKE GANGBUSTERS SALES IN 1993 WERE UP 30 FROM 1992 AND NET INCOME TRIPLED THE NEWS IS THE SAME THROUGH MUCH OF THE REGION THANKS LARGELY TO A UNIQUE MIX OF MANUFACTURERS THAT ARE ABLE TO TAKE ADVANTAGE OF THE NATIONWIDE HOUSING BOOM THE SOUTHEAST'S ECONOMY HAS BEEN MOVING SMARTLY AHEAD THAT MIX OF HOUSEHOLD TEXTILES APPLIANCES FURNITURE AND CONSTRUCTION PRODUCTS HELPED KEEP MANUFACTURINGEMPLOYMENT RATES IN THE REGION LEVEL THROUGH THE FIRST NINE MONTHS OF 1993 BY CONTRAST MANUFACTURING EMPLOYMENT NATIONWIDE FELL 16 THROUGH THE THIRD QUARTER SUCH INDUSTRIES OF COURSE CAN BE FOUND THROUGHOUT THE COUNTRY BUT THE CONCENTRATION OF THOSE MANUFACTURERS IN THE SOUTHEAST ACCORDING TO THE RECENT REGIONAL UPDATE BY THE FEDERAL RESERVE BANK OF ATLANTA MEANS THAT BROOKWOOD FURNITURE AND ITS NEIGHBORS SHOULD CONTINUE TO OUTPACE THE REST OF THE COUNTRY AS NATIONAL HOUSING ACTIVITY BOUNCES BACK LAST YEAR FOR INSTANCE BROOKWOOD ADDED 68 EMPLOYEES TO ITS ROLLS BOOSTING THE NUMBER OF WORKERS 17 TO 464 THE COMPANY WOULD LIKE TO ADD MORE THIS YEAR SAYS MR DIFFEE BUT WITH UNEMPLOYMENT IN THE AREA OF ONLY 4 BROOKWOOD IS FACING A RARE LABOR SHORTAGE THE CARPET MARKET IS UP 5 REPORTS JOHN SWIFT CHIEF FINANCIAL OFFICER OF MOHAWK INDUSTRIES INC AN ATLANTA MANUFACTURER OF COMMERCIAL AND RESIDENTIAL CARPETS THAT'S NOT A BAD INCREASE SINCE WE'VE BEEN AT BETWEEN 2 AND 3 ANNUAL GROWTH FOR A WHILE HE SAYS MR SWIFT SEES THE INCREASE IN RESIDENTIAL CARPET SALES WHICH ACCOUNT FOR A BIGGER PORTION OF MOHAWK'S SALES INCREASE AS DIRECTLY TIED TO THE HOUSING MARKET THE SOUTHEAST'S ABOVEAVERAGE ECONOMIC PERFORMANCE IS BECOMING SOMETHING OF A HABIT THE REGION HAS CONSISTENTLY ATTRACTED NEW BUSINESSES AND CREATED JOBS AT A PACE WELL AHEAD OF THE NATION SAYS MARK VITNER AN ECONOMIST WITH FIRST UNION BANK IN CHARLOTTE NC THAT GROWING JOB DISPARITY HAS BROUGHT JOB SEEKERS TO THE AREA WHICH IN TURN HAS GIVEN THE HOUSING MARKET A LIFT SIX SOUTHEAST STATES RANK AMONG THE TOP 10 IN TERMS OF ATTRACTING NEW RESIDENTS FROM OTHER STATES MR VITNER SAID CORRESPONDINGLY BUILDING PERMITS FOR SINGLEFAMILY HOMES WERE UP NEARLY 12 THROUGHOUT THE REGION IN 1993 AND SHOULD RISE AN ADDITIONAL 7 IN 1994 HE SAYS ALSO SETTING THE SOUTHEASTERN ECONOMY APART FROM THE NATION HAS BEEN THE NORMALITY OF THE REGION'S ECONOMIC RECOVERY ECONOMISTS SAY WHILE THE NATION'S GROSS DOMESTIC PRODUCT SHOT UP AT AN ANNUAL RATE OF 59 IN THE 1993 FOURTH QUARTER ACCORDING TO FIGURES RELEASED LAST WEEK BY THE COMMERCE DEPARTMENT THE RECOVERY HAS BEEN LACKING IN JOB GROWTH BUT NOT FOR THE SOUTHEAST FOR ONE THING CORPORATE LAYOFFS HAVEN'T BEEN AS BIG A FACTOR IN THE REGION AS IN THE REST OF THE COUNTRY WHEN YOU TAKE A LOOK AND SAY WHAT ARE THE FACTORS MAKING THE ECONOMY SHRINK NATIONALLY' YOU'LL SEE WE DON'T REALLY HAVE THOSE INDUSTRIES SAYS DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IN ATLANTA IT'S THE MILITARY FOR INSTANCE WELL WE'VE GOT MILITARY IN THE SOUTHEAST BUT WE DON'T MAKE THE EQUIPMENT FOR THEM SO WE DON'T HAVE THE BIG DRAIN A CALIFORNIA OR A CONNECTICUT IS TAKING FURTHERMORE A GREAT DEAL OF REGIONAL PRIDE IN THE SOUTH MANIFESTING ITSELF IN THE BOOSTERISH PROBUSINESS ATTITUDE PARTICULARLY PREVALENT IN PLACES LIKE ATLANTA AND CHARLOTTE HAS HELPED THE REGION RECRUIT AND RETAIN BUSINESSES YOU LOOK AT AREAS IN THE NORTHEAST WITH A CHRONIC REVENUE SHORTFALL WELL THEY'RE ALWAYS LOOKING FOR BUSINESSES TO PICK UP TAXES MR VITNER SAID THAT'S CHASING A LOT OF BUSINESSES OUT OF THEIR STATES STILL THE SOUTHEAST HAS ITS PROBLEMS WHILE METROPOLITAN AREAS LIKE ATLANTA CHARLOTTE NASHVILLE TENN AND JACKSONVILLE FLA ARE SEEING HUGE POPULATION GROWTH RURAL AREAS AREN'T SHARING IN THAT GROWTH THESE AREAS ECONOMISTS SAY WHICH HAVE LONG DEPENDED LARGELY ON A SINGLE COMPANY FOR EMPLOYMENT ARE FINDING THAT SHIFTS TO HIGHTECHNOLOGY MACHINERY ARE MAKING HOMETOWN COMPANIES LESS LABORINTENSIVE IN ADDITION THE REGION'S HEAVY RELIANCE ON MANUFACTURING MEANS THAT JOB LOSSES IN THE APPAREL INDUSTRY NATIONWIDE ARE FELT PARTICULARLY IN THE SOUTH EVEN THOSE LOSSES HOWEVER SHOULD BE OFFSET BY EMPLOYMENT GAINS IN FACTORIES THAT MAKE CONSTRUCTION MATERIALS AND HOME FURNISHINGS THE FEDERAL RESERVE SAYS THE GOOD TIMES WON'T LAST FOREVER THOUGH CONSTRUCTION ISN'T GOING TO DO BETTER THAN OTHER INDUSTRY FOREVER SAYS TOM CUNNINGHAM AN ECONOMIST WITH THE FEDERAL RESERVE THEN THAT SINGLE IMPETUS FOR RAPID GROWTH WILL FADE WHAT'S MORE AS THE SOUTHEAST GROWS IN POPULATION IT WILL BEGIN TO LOOK MORE LIKE THE REST OF THE COUNTRY IF YOU'RE A SMALL AREA IT'S EASY TO BE DIFFERENT MR CUNNINGHAM SAYS ONCE YOU GET BIG IT'S HARDER 9402040103 940204 ITALIAN WINES AFTER GETTING A LATE START APPEAL TO MORE COLLECTORS AS INVESTMENTS BY SERGIO CANTONE SPECIAL TO THE WALL STREET JOURNAL MILAN LONG CONSIDERED THE POOR COUSINS OF THEIR MORE ESTABLISHED FRENCH NEIGHBORS ITALIAN WINES CAN NONETHELESS YIELD A COMPARABLE RETURN ON INVESTMENT EXPERTS SAY A HIGHQUALITY ITALIAN WINE COSTS ABOUT ONE THIRD LESS THAN A FRENCH ONE AND CAN APPRECIATE IN VALUE JUST AS MUCH IN THE AGING SAYS LUIGI COTTI OWNER OF ENOTECA COTTI A MILAN WINE SHOP ITALIAN WINE WASN'T ALWAYS CONSIDERED SUCH A COLLECTOR'S ITEM AND A HIGHQUALITY FRENCH WINE STILL IS USUALLY MORE EXPENSIVE THAN A COMPARABLE ITALIAN ONE WINE DEALERS SAY THAT WHILE AMERICANS HAVE APPRECIATED THE INVESTMENT VALUE OF A GOOD BARBARESCO FOR AT LEAST A DECADE EUROPEANS AND EVEN ITALIANS THEMSELVES HAVE CAUGHT ON ONLY RECENTLY WHILE FINE VINTAGES ALWAYS HAVE BEEN APPRECIATED IN ITALY AND CAN COME WITH A HEFTY PRICE TAG WINE TYPICALLY IS CONSIDERED A BEVERAGE NOT A JEWEL IN ITALY TABLE WINE CAN OFTEN BE HAD FOR LESS THAN THE PRICE OF GASOLINE UNTIL A FEW YEARS AGO WINE WAS NOT SINGLED OUT AS AN INVESTMENT IN ITALY ITALIANS ONLY CHANGED THEIR MINDS TOWARD THE PRODUCT IN THE '80S SAYS LUISA RONCHI OWNER OF A MILAN WINE SHOP CALLED ENOTECA RONCHI FOUNDED IN 1865 THE ITALIAN WINE MARKET ISN'T AS DEVELOPED AS THE FRENCH BECAUSE OF A LACK OF TRADITION AND ORGANIZATION MS RONCHI SAYS AS A RESULT DEALERS AND WINESTORE OWNERS OFTEN GIVE ONLY VAGUE INDICATIONS OF PRICES AND NO OFFICIAL PRICE LIST EXISTS IN ITALY NEVERTHELESS WE HAVE MANY GOOD WINES THAT CAN APPRECIATE IN VALUE IN THE FUTURE SHE SAYS WINES THAT APPRECIATE IN VALUE MOST ARE THE NEWER TYPES CREATED AFTER WORLD WAR II DEALERS SAY PARTICULARLY IN TUSCANY FOR EXAMPLE LUDOVICO ANTINORI'S 1990 SASSICAIA WHICH COULD BE PURCHASED IN THE 1980S FOR AROUND 15 AT THE CURRENT EXCHANGE RATE NOW IS VALUED AT AROUND 89 OTHER EXAMPLES ARE 1989 ORNELLAIA AND SOLAIA BOTH TUSCAN REDS WHICH NOW COST ABOUT 3250 AND ARE EXPECTED TO REACH PRICES OF FROM 59 TO 71 IN ABOUT FIVE YEARS OTHER NEW WINES TO KEEP AN EYE ON INCLUDE TIGNANELLO CIGNALE PERGOLE TORTE SAN MARCO AND CASTELLO DI AMA ALL FROM THE CHIANTI REGION THEY ALL COST AROUND 2050 TO 2650 CURRENTLY AND ARE EXPECTED TO DOUBLE IN VALUE OVER THE NEXT FIVE YEARS EXPERTS SAY THESE WINES SHOULD HAVE GOOD VALUE APPRECIATION BECAUSE THEY ARE NORMALLY CONSIDERED TOP TABLE WINES GOOD FOR RESTAURANTS OR GIFTS SAYS MR COTTI EXPERTS ATTRIBUTE THEIR HIGH QUALITY IN PART TO USE OF MODERN PRODUCTION METHODS SASSICAIA TIGNANELLO AND ORNELLAIA ARE NOT EVERY DAY WINES BECAUSE OF THEIR HIGH QUALITY SAYS SERENA SUTCLIFFE HEAD OF SOTHEBY'S WINE DEPARTMENT IN LONDON WHICH AUCTIONS OFF SMALL ITALIAN WINE COLLECTIONS SEVERAL TIMES A YEAR ASIDE FROM THE NEW WINES EXPERTS SAY OTHER GOOD INVESTMENTS ARE CLASSIC TYPES FROM THE NORTH PIEDMONT AND THE VENETO REGION AND THE CENTER TUSCANY THIS IS BECAUSE OF TRADITION AND BECAUSE CENTRAL AND NORTHERN PRODUCERS HAVE INTRODUCED NEW TECHNOLOGIES MS RONCHI SAYS SOME OF THE HIGHEST PRICES HAVE BEEN FETCHED BY BAROLO AND BARBARESCO FROM ASTI IN PIEDMONT AND AMARONE RECIOTO FROM VERONA IN VENETO WHILE BRUNELLO DI MONTALCINO IS A HIGH PROFILE WINE FROM TUSCANY CLASSIC RED WINES ARE CONSIDERED A BETTER INVESTMENT THAN WHITE BECAUSE THEY HAVE A LONGER PERIOD OF AGING AND THE WHITES DON'T APPRECIATE WITH AGE EXPERTS SAY BAROLO AND BARBARESCO TWO CLASSIC RED WINES GRAB THE MOST ATTENTION FROM OENOLOGISTS AND ARE THOSE BEST KNOWN ON THE INTERNATIONAL MARKETS THESE WINES HAVE A GOOD MARKET IN THE US AFFIRMS FAITH WILLINGER A FLORENCEBASED WINE WRITER THEY ARE NORMALLY SOUGHT AFTER BY COLLECTORS AND SPECIALIZED SHOPS MR COTTI THE WINESHOP OWNER AGREES THE BEST INVESTMENTS IN CLASSIC WINES ARE IN BAROLO AND BARBARESCO THEY ALWAYS INCREASE IN VALUE EXAMPLES OF GOOD VINTAGES TO STOCK UP ON ARE 1988 1989 AND 1990 BAROLO OR 1985 1988 1989 AND 1990 BARBARESCO DEALERS SAY IN GENERAL ITALIAN CLASSIC WINES APPRECIATE IN QUALITY AND VALUE UNTIL THEY REACH ABOUT 20 TO 25 YEARS THEN THE PRICE AS WELL AS THE QUALITY STABILIZES IT IS BETTER TO AVOID BAROLOS OR BARBARESCOS BOTTLED IN 1984 1987 1992 AND 1993 EXPERTS SAY AS WELL AS IN 1962 1965 AND 1969 ITALY HAS ABOUT 100 SPECIALTY WINE SHOPS AND CUSTOMERS CAN BARGAIN FOR BETTER PRICES ESPECIALLY WHEN BUYING SEVERAL BOTTLES AT ONCE OWNERS EXPLAIN ANOTHER WAY OF ACQUIRING FINE ITALIAN WINES IS BY PURCHASING FUTURES THIS MEANS BUYING WINE ABOUT A YEAR AND A HALF BEFORE IT REACHES THE SHOP SUCH DEALS BROKERED BY WINE SHOPS THAT ADVISE ON VINTAGE QUALITY CAN SAVE AN INVESTOR AS MUCH AS 50 BUT NOT ALL PRODUCERS APPRECIATE THIS TYPE OF SALE BECAUSE MANY OF THEM ARE TOO CONSERVATIVE MS RONCHI SAYS THIS SUNDAY SOTHEBY'S WILL AUCTION OFF 1976 1980 AND 1983 SASSICAIA 1980 BIONDI SANTI BRUNELLO DI MONTALCINO AND 1979 AND 1981 BARBARESCO GAJA A CLASSIC WINE TWELVE MAGNUMS OR DOUBLESIZED BOTTLES OF 1980 SASSICAIA ARE VALUED AT 600 AT THE CURRENT EXCHANGE RATE BETWEEN THE POUND AND DOLLAR SIX BOTTLES OF BARBARESCO GAJA 1979 WILL START BIDDING AT 375 12 BOTTLES OF 1980 BIONDI SANTI BRUNELLO DI MONTALCINO ALSO WILL START AT 375 REALLY OLD WINES MEANWHILE ARE MORE FUN THAN PROFITABLE EXPERTS SAY BOTTLES DATED 1900 CAN RUN FOR 355 WHILE A FRENCH ONE OF A COMPARABLE AGE WILL COST ABOUT 474 BUT THEY WON'T GO MUCH HIGHER IN ITALY THESE ARE SOMETIMES GIVEN FOR A WEDDING OR BIRTHDAY SOMETIMES A BUYER WILL SELECT A WINE DATING FROM THE YEAR HIS FRIEND WAS BORN AS A SPECIAL GIFT 9402040102 940204 WHO'S NEWS ESCADA AG ESCADA AG DORNACH GERMANY THIS FASHION COMPANY SAID IT NAMED RONALD L FRASCH SENIOR VICE PRESIDENT IN CHARGE OF WOMEN'S APPAREL FOR THE NEIMAN MARCUS UNIT OF NEIMAN MARCUS GROUP INC TO BE THE PRESIDENT OF ITS ESCADA USA DIVISION AT NEIMAN MR FRASCH 45 YEARS OLD WORKED CLOSELY WITH ESCADA WHICH HAS BEEN ONE OF NEIMAN'S TOPSELLING DESIGNER COLLECTIONS BASED IN NEW YORK ESCADA USA IS A WHOLESALER AND RETAILER OF WOMEN'S DESIGNER APPAREL WITH 1993 SALES OF ABOUT 120 MILLION MR FRASCH REPLACES PETER LANIAK 63 WHO SERVED AS ESCADA USA'S PRESIDENT SINCE 1986 AND HAD PREVIOUSLY ANNOUNCED HIS PLANS TO RETIRE ESCADA SAID THAT MR LANIAK HAS BEEN ELECTED VICE CHAIRMAN OF ITS US BOARD 9402040101 940204 AFTER A LONG RUN SHEARSON'S NAME MAY FINALLY VANISH TRAVELERS FIRM'S NEW PARENT PLANS TO CONSIDER DROPPING FAMOUS MONIKER ON MAY 1 BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHEARSON ONE OF THE BIGGEST NAMES ON WALL STREET FOR NEARLY A CENTURY MAY SOON BITE THE DUST A PLANNING COMMITTEE OF TRAVELERS INC PARENT OF BROKERAGE GIANT SMITH BARNEY SHEARSON INC RECENTLY VOTED TO CONSIDER DROPPING THE SHEARSON NAME ON MAY 1 PEOPLE FAMILIAR WITH THE MATTER SAID THE TRAVELERS UNIT WAS FORMED IN JULY BY COMBINING SHEARSON'S BROKERAGE OPERATIONS WITH SMITH BARNEY HARRIS UPHAM & CO IT'S LIKELY THE SHEARSON NAME WILL INDEED BE SHELVED THE PEOPLE SAID THE PROBLEM WITH SHEARSON IT SEEMS IT THAT IT DOESN'T HAVE MUCH CACHE ANYMORE BEFORE ITS MERGER WITH SMITH BARNEY SHEARSON HAD BEEN MIRED IN RED INK FOR SEVERAL YEARS INCLUDING A 1990 LOSS OF 966 MILLION A RECORD FOR THE BROKERAGE BUSINESS WITH ALL THE BAGGAGE PEOPLE WILL BE JUST AS HAPPY THAT IT'S GONE SAYS THEODORE A KREBSBACH SHEARSON'S FORMER LITIGATION CHIEF WHO IS NOW WITH KITTAY GOLD & KREBSBACH A NEW YORK LAW FIRM BUT I HAVE A TOUGH TIME BELIEVING THAT THE SMITH BARNEY NAME IS MUCH BETTER THE LIKELIHOOD OF DROPPING SHEARSON SURPRISED SOME BROKERAGE EXECUTIVES THAT'S BECAUSE TRAVELERS CHAIRMAN SANFORD I WEILL WHO MADE HIS MARK ON WALL STREET BY COBBLING TOGETHER SHEARSON IN THE 1970S AND 1980S HAS ALWAYS KEPT THE SHEARSON SIGNATURE THROUGHOUT A SERIES OF MERGERS AND ACQUISITIONS OBVIOUSLY HE LOVES SHEARSON BUT HE'S WILLING TO GO THE WAY OF THE COMMITTEE A PERSON FAMILIAR WITH THE MATTER SAID MR WEILL WAS OUT OF THE COUNTRY AND UNAVAILABLE FOR COMMENT THE SHEARSON TALKS ARE PART OF A BROADER REVIEW OF THE TRAVELERS NAME AND ITS RELATIONSHIP WITH VARIOUS UNITS ONE MATTER UNDER REVIEW FOR INSTANCE IS NOT USING THE TRAVELERS NAME IN CONNECTION WITH ITS BROKERAGE UNIT BECAUSE OF THE INSURANCE CONNOTATION THAT THE TRAVELERS NAME AND ITS FAMOUS REDUMBRELLA LOGO BRINGS SHEARSON HAS BEEN AMONG WALL STREET'S LONGEST RUNNING NAMES SINCE IT WAS FOUNDED IN 1902 AS SHEARSON HAMMILL & CO BY ED SHEARSON A CANADIAN BROKERAGE EXECUTIVE SHEARSON HAMMILL'S NAME STAYED THE SAME FOR 72 YEARS BEFORE HAYDEN STONE BOUGHT IT IN 1974 AND CALLED IT SHEARSON HAYDEN STONE SINCE THEN THE FIRM HAS BEEN CALLED SHEARSON LOEB RHOADES 1979 SHEARSON/AMERICAN EXPRESS 1981 SHEARSON LEHMAN/AMERICAN EXPRESS 1984 SHEARSON LEHMAN BROTHERS 1985 AND SHEARSON LEHMAN HUTTON 1988 IT REVERTED TO THE NAME SHEARSON LEHMAN BROTHERS IN 1990 BEFORE LAST YEAR'S CHANGE TO SMITH BARNEY SHEARSON WHEN FOR THE FIRST TIME THE SHEARSON NAME DIDN'T GET TOP BILLING THERE'S STILL A CHANCE THAT THE SHEARSON NAME WILL REMAIN FOR SELECTED DIVISIONS OF SMITH BARNEY SOME SMITH BARNEY MUTUAL FUNDS FOR INSTANCE MAY RETAIN THE SHEARSON MONIKER THE PEOPLE SAID AND SHEARSON MAY CARRY MORE WEIGHT IN INTERNATIONAL AND INVESTMENTBANKING CIRCLES A PERSON FAMILIAR WITH THE MATTER SAID 9402040100 940204 FOOD BEEF IRRADIATION MEETS POLITICS IN WASHINGTON BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IRRADIATING BEEF MAY HELP SAVE LIVES BUT THE MEAT INDUSTRY IS STILL WAITING FOR THE GOVERNMENT'S GREEN LIGHT AGRICULTURE DEPARTMENT SCIENTISTS RECENTLY REPORTED THAT SMALL DOSES OF IRRADIATION COULD WIPE OUT NEARLY 100 OF THE E COLI BACTERIAL STRAIN IN BEEF THESE BACTERIA WERE BLAMED IN THREE WEST COAST TAINTEDHAMBURGER FATALITIES MORE THAN A YEAR AGO AND IN SEVERAL SUBSEQUENT CASES MOST INVOLVING CHILDREN IRRADIATION HAS ALREADY BEEN SHOWN TO STERILIZE MEAT AND PRODUCE AGAINST PRACTICALLY ALL BACTERIA THAT CAUSE SPOILAGE WHILE AN AIDE SAYS AGRICULTURE SECRETARY MIKE ESPY IS CLOSE TO ANNOUNCING HIS POSITION ON THE ISSUE OTHERS SUSPECT THAT POLITICS IS HOLDING HIM BACK WITHIN THE CLINTON ADMINISTRATION THERE IS CONCERN THAT THE PUBLIC MIGHT LINK BEEF IRRADIATION WITH THE GOVERNMENT RADIATION EXPERIMENTS OF THE 1950S SOME PROPONENTS HAVE EVEN SUGGESTED GETTING RID OF THE NAME IRRADIATION CALLING THE PROCESS IONIZED PASTEURIZATION INSTEAD CRITICISM OF IRRADIATION HAS COME PRIMARILY FROM A SMALL BUT VOCAL GROUP CALLED FOOD AND WATER INC WHICH CONTENDS THAT DESPITE YEARS OF RESEARCH NOT ENOUGH IS KNOWN ABOUT THE STRAY MOLECULES CREATED DURING IRRADIATION CRITICS ALSO WORRY THAT THE PROCESS MAY REDUCE NUTRIENT LEVELS INDEED MR ESPY'S PRESS SECRETARY STEVE KINSELLA RECENTLY SAID THAT BEFORE MR ESPY WOULD RECOMMEND IRRADIATION AS PART OF STEPPEDUP SAFETY MEASURES FOR BEEF THE PROCESS WOULD HAVE TO BE PROVEN IT IS SAFE AND ACCEPTABLE BY CONSUMERS THE MOST COMMON METHOD OF IRRADIATING FOOD IS WITH BRIEF BURSTS OF GAMMA RAYS FROM THE RADIOACTIVE ISOTOPE COBALT60 THIS PROCEDURE WHICH TAKES PLACE IN A ROOM WITH CONCRETE WALLS IS USED TO TREAT PRODUCE AND SOME POULTRY IN FLORIDA IN THE COUNTRY'S ONLY COMMERCIAL FOODIRRADIATION PLANT THE METHOD HAS LONG BEEN USED IN THE US TO STERILIZE MEDICAL DEVICES AND THE FOOD THAT ACCOMPANIES ASTRONAUTS INTO SPACE AND HAS BEEN USED FOR YEARS IN EUROPE AND THE MIDDLE EAST TO PREVENT SPOILAGE IN FACT AT LEAST SOME OF THE SHRIMP IMPORTED INTO THE US HAS BEEN IRRADIATED IN EUROPE A PROPOSAL FROM THE MEAT INDUSTRY URGING MR ESPY'S SUPPORT HAS BEEN AT THE AGRICULTURE DEPARTMENT FOR WEEKS BUT HE HASN'T HELD A FULL DEPARTMENTLEVEL MEETING TO DISCUSS IT PEOPLE FAMILIAR WITH THE MATTER SAY MR ESPY DECLINED TO BE INTERVIEWED SOME PROPONENTS SUSPECT THAT THE DECISION ON BEEF IS HUNG UP ON PHILOSOPHICAL DISAGREEMENTS WITHIN THE DEPARTMENT THEY NOTE THAT ELLEN HAAS NOW AN ASSISTANT SECRETARY IN CHARGE OF FOOD AND CONSUMER SERVICES ACTIVELY OPPOSED IRRADIATION WHILE SHE WAS EXECUTIVE DIRECTOR OF PUBLIC VOICE FOR FOOD AND HEALTH POLICY THAT CONSUMERADVOCACY GROUP ONCE SUGGESTED THAT IRRADIATED FOODS BE MARKED WITH A SKULL AND CROSSBONES A SPOKESMAN FOR MS HAAS SAYS SHE HASN'T DISCUSSED THE TOPIC WITH MR ESPY MR ESPY PASSED UP A CHANCE TO ENDORSE IRRADIATION LAST WEEK WHEN HE ATTENDED A SEMINAR ON FOOD SAFETY IN NEW YORK CITY SPONSORED BY THE PARENTS OF A GIRL WHO HAD DIED OF KIDNEY FAILURE AFTER EATING FOOD POISONED BY THE BACTERIA KNOWN AS E COLI 0157H7 IN HIS REMARKS MR ESPY SPOKE ABOUT IMPROVING THE CURRENT PACKINGPLANT INSPECTION SYSTEM BUT DIDN'T MENTION IRRADIATION PRESSURE FOR HIM TO ENDORSE IS GROWING SEN CHARLES GRASSLEY R IOWA RECENTLY URGED MR ESPY TO RECOMMEND IRRADIATING BEEF CALLING IT THE MOST PROMISING PATH WE KNOW TO HALT AND EVENTUALLY ELIMINATE THE PROLIFERATION OF PATHOGENS IN OUR FOOD SUPPLY OTHERS IN CONGRESS ALSO WANT ACTION OUR POSITION IS LET'S GO' SAYS AN AIDE TO SEN SLADE GORTON R WASH THE AMERICAN MEDICAL ASSOCIATION'S COUNCIL ON SCIENTIFIC AFFAIRS HAS RECOMMENDED THAT IRRADIATION BE ADDED TO WHAT IT CALLED THE ARMAMENTARIUM OF TECHNIQUES TO ENSURE FOOD SAFETY AND IN MAINE STATE EPIDEMIOLOGIST KATHLEEN GENSHEIMER HOPES THAT STATE'S BAN ON IRRADIATED FOOD WILL BE REPEALED SOON FOOD IRRADIATION IS AN EXAMPLE OF TECHNOLOGY NOT BEING PUT TO GOOD USE SHE SAYS TWENTYTHREE CASES OF E COLI INFECTION WERE REPORTED IN MAINE IN THE SECOND HALF OF 1993 WHILE E COLI CASES AREN'T ROUTINELY REPORTED NATIONALLY DENISE KOO AN EPIDEMIOLOGIST AT THE US CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA BELIEVES THE E COLI 0157H7 STRAIN IS INCREASING IN INCIDENCE CARRIERS OF THE PATHOGEN ARE SOMETIMES DIFFICULT TO PINPOINT BUT SAYS DR KOO OFTEN HEALTH DEPARTMENTS CAN TRACE IT BACK TO A BEEF SOURCE JAMES MARSDEN VICE PRESIDENT OF SCIENTIFIC AND TECHNICAL AFFAIRS AT THE AMERICAN MEAT INSTITUTE A TRADE GROUP WHOSE MEMBERSHIP INCLUDES BEEFPACKERS SAYS IF THE USDA IS GOING TO SUCCESSFULLY ADDRESS PATHOGENS IN MEAT AND POULTRY THIS IS ONE TECHNOLOGY THEY WILL HAVE TO STRONGLY CONSIDER AT THE VERY MINIMUM YOU NEED TO GIVE CONSUMERS A CHOICE THE GOVERNMENT APPROVED IRRADIATING POULTRY IN 1992 BUT SO FAR NO NATIONALBRAND PROCESSOR HAS SOLD IRRADIATED POULTRY IN PART BECAUSE OF WORRIES ABOUT POTENTIAL CONSUMER BACKLASH AND THE QUESTIONS THE PROCESS MIGHT RAISE ABOUT NONIRRADIATED POULTRY BECAUSE IRRADIATION IS CONSIDERED A FOOD ADDITIVE ALTHOUGH IT LEAVES NO TRACES AND IS UNDETECTABLE THE FDA BY LAW MUST APPROVE THE TECHNIQUE FOR BEEF AS IT HAS FOR POULTRY BUT THE FDA CAN'T ACT UNTIL THE USDA WHICH OVERSEES THE NATION'S MEAT SUPPLY FORMALLY RECOMMENDS THAT IT DO SO AGRICULTURE DEPARTMENT AIDES ALSO SUGGEST THAT MR ESPY IS SEEKING LESS VOLATILE ALTERNATIVES TO IRRADIATION OUR SCIENTISTS HAVE LOOKED AT TECHNOLOGIES ALREADY USED IN THE PHARMACEUTICALS AND CHEESEMANUFACTURING INDUSTRIES AS WELL AS POSSIBLE APPLICATIONS OF CHEMICALWARFARE DETECTION SYSTEMS USED IN DESERT STORM ONE AIDE SAID WHILE ITS LEADERSHIP WEIGHS THE MATTER USDA RESEARCHERS ARE PRESSING FORWARD ON SEVERAL OTHER FRONTS INCLUDING A SEARCH FOR AN E COLI VACCINE SCIENTISTS AT A GOVERNMENT LABORATORY IN BELTSVILLE MD HAVE INSERTED INTO PIGS SHEEP AND MICE A MOUSE GENE THAT PRODUCES AN ANTIBODY AGAINST E COLI WHAT IT IS SHORT BURSTS OF GAMMA RAYS FROM THE RADIOACTIVE ISOTOPES COBALT60 OR CESIUM137 OR FROM ELECTRON BEAMS WHAT IT DOES REMOVES ALMOST ALL TRACES OF E COLI IN BEEF SALMONELLA IN POULTRY CHOLERA IN FISH TRICHINOSIS IN PORK AND BACTERIA THAT SPOIL PRODUCE PROPONENTS OF BEEF IRRADIATION THE NATIONAL FOOD PROCESSORS ASSOCIATION THE AMERICAN MEDICAL ASSOCIATION THE WORLD HEALTH ORGANIZATION AND THE AMERICAN MEAT INSTITUTE ALL SAY BEEF IRRADIATION WILL HELP REDUCE DEATHS FROM E COLI CRITICS OF BEEF IRRADIATION FOOD AND WATER INC THEY SAY NUTRIENTS ARE LOST IN THE PROCESS AND NOT ENOUGH IS KNOWN ABOUT THE STRAY MOLECULES THAT RESULT FROM IT 9402040099 940204 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JAN 28 ACCOUNTED FOR 7 OR AN AVERAGE 223 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 81 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 401 INVOLVED STOCKINDEX ARBITRAGE UP FROM 39 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 588 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 388 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 24 WAS DESIGNATED AS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS MORGAN STANLEY UBS SECURITIES FIRST BOSTON COOPER NEFF AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS 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 9402040098 940204 LETTERS TO THE EDITOR TAKE THEIR EYES OFF THE REARVIEW MIRROR IN YOUR JAN 20 MONEY MATTERS SAVVY FUND INVESTORS CAN BE A BANE TO SOME BROKERS JAN 20 YOU QUOTED TWO SENTENCES FROM AN ARTICLE OF MINE THE PERNICIOUS FICTION OF TRACK RECORD IN INVESTMENT ADVISOR MAGAZINE YOU USED THE QUOTES OUT OF CONTEXT YOU IMPLY THAT I ENCOURAGE BROKERS TO TRY TO DIVERT INVESTORS' ATTENTION FROM MUTUALFUND PERFORMANCE TO THE POTENTIAL DETRIMENT OF INVESTORS THE WHOLE POINT OF MY ARTICLE WAS THAT MUTUALFUND PERFORMANCE NOW MORE THAN EVER IS NOT THE BOTTOM LINE AND THAT INVESTORS NEED AN INFORMED BROKER TO HELP THEM UNDERSTAND THE RISK THAT A FUND'S PERFORMANCE MAY NOT BE REPEATABLE INVESTING PRIMARILY ON THE BASIS OF PAST PERFORMANCE I ARGUED IGNORES THE CYCLICAL NATURE OF MARKETS IT WON'T MATTER FOR INSTANCE WHICH GOVERNMENTBOND FUND ONE CHOOSES IF ONE EXPECTS THAT GOVERNMENTBOND FUNDS WILL RETURN OVER THE NEXT DECADE WHAT THEY DID OVER THE LAST WHICH MANY OF TODAY'S FIRSTTIME FUND INVESTORS CLEARLY DO IF BIGCAP STOCK FUNDS HAVE THE BEST RECORD AT THE MOMENT AND THE INVESTOR PICKS ONE ON THE BASIS OF PERFORMANCE HE'LL MISS THE FACT THAT CYCLICALLY BIGCAP MAY NOW UNDERPERFORM SMALLCAP THE MORE ONE MISTAKENLY ASSUMES THAT PERFORMANCE IS THE BOTTOM LINE THE MORE LIKELY ONE IS TO DRIVE DOWN THE ROAD LOOKING ONLY IN THE REARVIEW MIRROR 9402040097 940204 ECONOMY CAR TRUCK SALES INCREASED 137 DURING JANUARY BOOM CONTINUED AS GAIN FROM 1993 OCCURRED IN FACE OF DISRUPTIONS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US SALES OF CARS AND LIGHT TRUCKS CONTINUED TO BOOM IN JANUARY RISING 137 FROM A YEAR EARLIER COMING IN THE FACE OF HIGHER VEHICLE PRICES AND DESPITE THE DISRUPTIONS OF UNUSUALLY COLD WEATHER AND THE CALIFORNIA EARTHQUAKE THE RISE IN CAR AND TRUCK SALES TO 1022543 VEHICLES SEEMED TO UNDERSCORE THE STRENGTH OF THE ECONOMIC RECOVERY THE AUTO INDUSTRY IS BANKING ON THE UPTREND TO CONTINUE THROUGH THIS YEAR AT LEAST ON A SEASONALLY ADJUSTED BASIS THE JANUARY RESULTS WERE EQUIVALENT TO ABOUT 15 MILLION VEHICLE SALES A YEAR INCLUDING BOTH IMPORTS AND NORTH AMERICANBUILT VEHICLES THAT COMPARES WITH A YEAREARLIER SEASONALLY ADJUSTED ANNUAL SALES RATE OF ABOUT 135 MILLION THE JANUARY RATE IS IN LINE WITH INDUSTRY FORECASTS FOR THIS YEAR'S SALES IN 1993 US VEHICLE SALES TOTALED 139 MILLION BUSINESS DECLARED ROSS ROBERTS THE FORD MOTOR CO VICE PRESIDENT IN CHARGE OF ITS FORD MARKETING DIVISION IS GOOD NORTH AMERICANBUILT VEHICLES CONTINUED TO ACCOUNT FOR THE RISING SALES TOTALS IMPORTED CAR AND TRUCK SALES BOTH DECLINED IN JANUARY DELIVERIES OF NEW TRUCKS WHICH INCLUDE THE FASTGROWING MINIVAN AND SPORTUTILITYVEHICLE SEGMENTS SURGED 24 IN JANUARY WHILE CAR SALES ROSE 77 THE MARKET SHARE HELD BY DETROIT'S BIG THREE EDGED UP SEVENTENTHS OF A PERCENTAGE POINT TO 748 MOSTLY AT THE EXPENSE OF JAPANESE NAMEPLATES WALL STREET WHICH HAS BEEN BULLISH ON THE AUTO STOCKS FOR SOME TIME RESPONDED BY PUSHING UP BIG THREE PRICES IN ACTIVE TRADING FORD SHARES SPURTED 1625 TO CLOSE AT 69375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENERAL MOTORS CORP WAS UP 150 TO CLOSE AT 63 AND CHRYSLER CORP GAINED 125 TO CLOSE AT 6250 ONE MAJOR FACTOR IN THE RECENT SALES GROWTH HAS BEEN THE AGGRESSIVE PROMOTION OF SHORTTERM LEASING PARTICULARLY BY FORD SEPARATELY AS EXPECTED FORD YESTERDAY DISCLOSED DETAILS OF ITS NEW USEDCAR LEASING PROGRAM WHICH IS TO BEGIN FEB 15 THE PROGRAM FOCUSES ON TWOYEAROLD FORDS THAT ARE COMING BACK INTO DEALERS' HANDS AT THE END OF TWOYEAR LEASES FORD SAID IT EXPECTS ABOUT 130000 SUCH VEHICLES TO COME BACK THIS YEAR OF THOSE ABOUT HALF ARE LIKELY TO BE LEASED AGAIN UNDER THE NEW PROGRAM FORD SAID FORD WILL SWEETEN ITS USEDCAR LEASE DEALS BY EXTENDING ITS STANDARD NEWCAR WARRANTY TO COVER THE LEASE PERIOD AND BY OFFERING ROADSIDE ASSISTANCE THE USEDCAR LEASES WILL CARRY LOWER INTEREST RATES THAN THOSE ON NEWCAR LEASES REDUCING POTENTIAL MONTHLY PAYMENTS ABOUT 100 A MONTH FORD SAID GM WAS THE BIG WINNER IN JANUARY POSTING A 166 SALES GAIN TO 345311 CARS AND LIGHT TRUCKS THE NO 1 AUTO MAKER SEIZED NEARLY A FULL PERCENTAGE POINT MORE OF MARKET SHARE TO 338 LIKE THE REST OF THE INDUSTRY GM WAS PARTICULARLY STRONG IN TRUCK SALES REPORTING A 445 INCREASE IN FULLSIZED CHEVROLET PICKUPTRUCK DELIVERIES A 394 INCREASE IN SMALL BLAZER SPORTUTILITYVEHICLE SALES AND A 22 TOTAL INCREASE IN TRUCK SALES IT WILL BE A GOOD HEALTHY MARKET THIS YEAR PREDICTED J MICHAEL LOSH THE GM VICE PRESIDENT FOR SALES SERVICE AND MARKETING BUT MR LOSH CAUTIONED THAT GM'S MARKET SHARE IS LIKELY TO SEESAW DURING THE YEAR BECAUSE PLANT CLOSINGS FOR MODEL CHANGEOVER ARE LIKELY TO DISRUPT THE COMPANY'S CAR SALES DURING THE SECOND AND THIRD QUARTERS CONSEQUENTLY HE SAID GM'S MARKET SHARE SHOULD FINISH 1994 ABOUT WHERE IT FINISHED 1993 AROUND 33 FORD'S JANUARY SALES ROSE 149 TO 260936 CARS AND TRUCKS THE NO 2 AUTO MAKER OBSERVED THAT ITS RANGER PICKUPS EXPLORER SPORTUTILITY VEHICLES AND VILLAGER MINIVANS ALL SET SALES RECORDS FOR JANUARY AND THAT THE TOPSELLING TAURUS CAR POSTED A 25 SALES INCREASE DESPITE TIGHT SUPPLIES THE NEW MUSTANG SOLD 11577 UNITS MORE THAN TWICE AS MANY AS THE OLD MODEL SOLD A YEAR EARLIER ON THE OTHER HAND UNDERSCORING RELATIVE WEAKNESS IN THE LUXURYCOUPE SEGMENT SALES OF THE LINCOLN MARK VIII PLUNGED 37 IN JANUARY GM'S COMPETING ELDORADO SOLD 28 FEWER THAN A YEAR EARLIER MEXICO FOR SALE IN THE US TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURISTDELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9402040096 940204 LETTERS TO THE EDITOR GIANTS IN PUERTO RICO TWO VIEWS YOUR PAGEONE ARTICLE HOW DRUG FIRMS SAVED PUERTO RICO TAX BREAK AFTER CLINTON ATTACK DEC 21 GRAPHICALLY DETAILS WHAT WE ENDURE THE INSIDIOUS INFLUENCE OF GIANT MAINLAND COMPANIES OVER THE DAILY LIVES OF THE ISLAND'S 36 MILLION SECONDCLASS CITIZENS WHILE THESE FIRMS BOAST OF SECTION 936'S HIGHERPAYING HIGHTECH JOBS THE FACTS BELIE THEIR CLAIMS NOT ONE SUCH NEW JOB HAS BEEN CREATED SINCE 1975 AND WORSE MANY OF MY PATIENTS ARE UNABLE TO EVEN AFFORD THE MEDICATIONS THEY MANUFACTURE THEY FILL THEIR PRESCRIPTIONS ON LAYAWAY BUYING REQUIRED DOSAGES AS NEEDED NO WONDER ISLANDERS WERE EASY PREY TO THREATS OF JOB LOSS AND COMPANIES BOLTING THE ISLAND IF 936 WAS ELIMINATED WHEN UNEMPLOYMENT RUNS TWICE THE MAINLAND'S AND PERCAPITA INCOME IS HALF OF MISSISSIPPI'S HALF OF A LOAF OF BREAD IS BETTER THAN HAVING NONE AT ALL SECTION 936 MONEY PERMEATES THE ISLAND'S ECONOMY AND POLITICS FROM THE BANKS WHO TAKE IN THE BILLIONS TO THE PUBLIC OFFICIALS PROFESSIONALS AND BUSINESS PEOPLE WHO PROSPER FROM IT THEY HAVE A VESTED INTEREST IN KEEPING PUERTO RICO A US APPENDAGE AS STATEHOOD WOULD END CORPORATE AMERICA'S GREAT TREASURY RAID THIS POWER AND INFLUENCE WAS NO MORE EVIDENT THAN IN OUR RECENT STATUS PLEBISCITE AS SIMILAR 936 THREATS WERE BANDIED ABOUT TO A FRIGHTENED ELECTORATE COMPROMISING OUR RIGHT TO FREELY EXPRESS SELFDETERMINATION VIEWS NOTWITHSTANDING THESE FALSE PROMISES OF STATEHOOD WITHOUT TAXATION A MAJORITY OF ISLANDERS REJECTED COMMONWEALTH FOR THE FIRST TIME IN 40 YEARS OUR ISLAND HAS BEEN A US POSSESSION FOR 95 YEARS AND OUR PEOPLE AMERICAN CITIZENS SINCE 1917 LONGER THAN ANY OTHER TERRITORY NOT GRANTED STATEHOOD OR INDEPENDENCE PUERTO RICANS HAVE EARNED THEIR RIGHT TO A 5LST STAR THROUGH COMMITMENT TO AMERICAN IDEALS AT HOME AND IN DEFENSE OF FREEDOM ABROAD MIRIAM RAMIREZ DE FERRER MD YOU FAILED TO EXAMINE THE ESSENTIAL VALUE OF THE SECTION 936 TAX INCENTIVE TO THE PUERTO RICAN ECONOMY YOU MAKE THE SUBJECTIVE AND UNSUBSTANTIATED OBSERVATIONS THAT SECTION 936 IS ILLCONCEIVED AND WIDELY VIEWED AS ONE OF THE MOST INEFFICIENT PROVISIONS OF THE US TAX CODE IN FACT SECTION 936 HAS BEEN REMARKABLY SUCCESSFUL IN MEETING ITS OBJECTIVES OF JOB CREATION AND ECONOMIC DEVELOPMENT TRANSFORMING PUERTO RICO FROM THE POORHOUSE OF THE CARIBBEAN INTO A THRIVING INDUSTRIAL ECONOMY MANUFACTURING ACCOUNTS FOR NEARLY 40 OF THE ISLAND GDP ANNUAL SALARIES IN MANUFACTURING GENERALLY AVERAGE MORE THAN 22000 AND AVERAGE MORE THAN 35000 IN THE PHARMACEUTICAL INDUSTRY ALTOGETHER ABOUT 300000 JOBS OR NEARLY ONETHIRD THE ISLAND'S TOTAL EMPLOYMENT ARE DIRECTLY OR INDIRECTLY GENERATED BY SECTION 936 AS PUERTO RICO'S ECONOMY HAS IMPROVED IT HAS BECOME ONE OF THE WORLD'S LARGEST MARKETS FOR MAINLAND GOODS AND SERVICES THREE HUNDRED THOUSAND JOBS CREATED ON THE ISLAND 200000 JOBS CREATED ON THE MAINLAND AND A VASTLY IMPROVED QUALITY OF LIFE FOR OUR FELLOW CITIZENS OF PUERTO RICO AT AN ANNUAL COST OF 3 BILLION ARE NOT THE RESULTS OF AN ILLCONCEIVED OR INEFFICIENT PROGRAM INDEED FEW IF ANY DOMESTIC OR FOREIGN AID PROGRAMS HAVE AN ECONOMIC IMPACT EQUIVALENT TO THAT OF SECTION 936 THE ARTICLE SUGGESTS THAT THERE IS SOMETHING SORDID IN THE COMPANIES' COMMINGLING THEIR OWN INTERESTS WITH THOSE OF THE PUERTO RICAN WORKERS OF COURSE THEIR INTERESTS ARE COMMINGLED PUERTO RICANS WOULD NOT HAVE JOBS IF THE COMPANIES CAN'T AFFORD TO OPERATE IN PUERTO RICO 9402040095 940204 HEARD ON THE STREET IRS RULING ABOUT BRUNSWICK'S DEDUCTIONS COULD MAKE INTANGIBLE ASSETS MORE TANGIBLE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL IT ISN'T EVERY DAY THAT WALL STREET CAN READ THE TEA LEAVES AND PREDICT WHICH COMPANIES ARE LIKELY TO WIN THEIR BATTLES WITH THE INTERNAL REVENUE SERVICE BUT ROBERT WILLENS IS WILLING TO DO IT BESIDES BEING A LEHMAN BROTHERS ANALYST MR WILLENS IS A TAX ACCOUNTANT HE THINKS THAT A RECENT IRS RULING INVOLVING BOAT MAKER BRUNSWICK CORP ROLLS OUT THE CRYSTAL BALL FOR INVESTORS SUGGESTING THAT OTHER UNRELATED COMPANIES INCLUDING INTERNATIONAL MULTIFOODS CHARLES SCHWAB FIRST USA AND PETROLEUM HEAT & POWER MAY MANAGE TO SETTLE THEIR TAX DISPUTES FAVORABLY THE RULING INVOLVES AN ODDITY FOUND ON THE BOOKS OF A LOT OF ACQUISITIONHUNGRY COMPANIES INTANGIBLE ASSETS THE ACCOUNTANTS CALL THEM INCLUDED ARE SUCH ITEMS AS CUSTOMER LISTS DEALER NETWORKS AND COMPUTER SOFTWARE A STEEL MILL GENERALLY RAISES NO EYEBROWS AT THE IRS WHEN ITS VALUE IS DEPRECIATED DEDUCTED FROM A COMPANY'S TAXABLE INCOME OVER A PERIOD OF YEARS BUT THE IRS HAS LONG SQUIRMED AT DEPRECIATION OF INTANGIBLES BECAUSE OF THE COST TO UNCLE SAM IN THE BRUNSWICK CASE INVOLVING INTANGIBLES HOWEVER THE COMPANY LAST MONTH AGREED TO PAY THE IRS ONLY 55 MILLION OUT OF 500 MILLION THAT THE AGENCY HAD CLAIMED WAS OWED THE IRS APPROVED THE SETTLEMENT PROVIDED BRUNSWICK WOULD STRETCH THE DEPRECIATION PERIOD TO 15 YEARS FROM AN AVERAGE OF LESS THAN 10 IT COULD SET A PRECEDENT FOR OTHER CORPORATIONS BATTLING THE IRS ON INTANGIBLE ASSETS MR WILLENS SAYS OF THE BRUNSWICK CASE THE IRS INSISTED IT WASN'T ESTABLISHING A PATTERN BUT THERE'S A BIT OF HISTORY BEHIND THE IRS MOVE LAST YEAR THE SUPREME COURT IN DECIDING THE SEPARATE CASE OF NEWARK MORNING LEDGER BOLSTERED BRUNSWICK'S ARGUMENT THAT 500 MILLION OF INTANGIBLE ASSETS ACQUIRED IN 1986 SHOULD BE DEDUCTIBLE AND IN AUGUST A MAJOR TAX LAW AFFIRMED THE HIGH COURT'S STANCE DIRECTING THE IRS TO SETTLE SUCH DISPUTES WITH COMPANIES THOUGH ALSO SHAVING POTENTIAL INTANGIBLESRELATED DEDUCTIONS BY STRETCHING THE DEPRECIATION PERIOD TO 15 YEARS AT INTERNATIONAL MULTIFOODS A MINNEAPOLIS FOODSERVICE CONCERN THE IRS ISN'T ALLOWING INTANGIBLEASSET DEDUCTIONS FOR THE YEAR ENDED FEB 29 1988 OR FOR THE PRIOR YEAR THOSE ASSETS INCLUDING DISTRIBUTOR NETWORKS AND CUSTOMER LISTS WERE OBTAINED BY ACQUIRING DISTRIBUTORS AND WHOLESALERS DURING THE TWO YEARS JOHN SCHAEFER INTERNATIONAL MULTIFOODS' DIRECTOR OF TAXES SAYS ABOUT 20 MILLION TO 30 MILLION IN TAXES ARE INVOLVED WE'VE BEEN TOLD BY THE IRS THAT IT WILL SOON ISSUE GUIDELINES AND WE HOPE THAT THE BRUNSWICK DECISION POINTS THE WAY HE ADDS HE ESTIMATES A FAVORABLE IRS DECISION COULD BOOST CASH FLOW OF INTERNATIONAL MULTIFOODS BY 1 MILLION TO 2 MILLION A YEAR FOR A DECADE OR MORE CHARLES SCHWAB THE SAN FRANCISCO DISCOUNT BROKERAGE HOUSE TWO YEARS AGO FILED A US TAX COURT PETITION REBUTTING AN IRS CLAIM FOR ADDED TAXES OF 28 MILLION FOR 1988 THE 1992 ANNUAL REPORT SAYS THE IRS CLAIM RELATES TO A MANAGEMENT BUYOUT OF SCHWAB IN 1988 THE BROKERAGE HOUSE NOW IS PUBLICLY TRADED ON THE NEW YORK STOCK EXCHANGE HUGO QUACKENBUSH SENIOR VICE PRESIDENT SAYS THE IRS IS DISPUTING DEPRECIATION OF INTANGIBLE ASSETS SUCH AS SOFTWARE INVOLVED IN THE MANAGEMENT BUYOUT IF SCHWAB'S CLAIM FOR 1988 IS ACCEPTED BY THE IRS SIMILAR DEDUCTIONS OF INTANGIBLE ASSETS FROM 1989 THROUGH 1992 ALSO COULD PREVAIL THE ANNUAL REPORT INDICATES IF THE IRS TAX SETTLEMENT IS REASONABLE AS INDICATED BY THE BRUNSWICK CASE WE EXPECT TO PAY LITTLE OF THE 28 MILLION SAYS MR QUACKENBUSH THE BRUNSWICK DECISION HAS LIFTED A CLOUD FROM THE COMPANY FIRST USA OF DALLAS IN THE CREDITCARD BUSINESS HAS TAKEN TAX DEDUCTIONS TO DEPRECIATE INTANGIBLE ASSETS RANGING FROM 53 MILLION TO MORE THAN 56 MILLION IN EACH OF THE THREE CONSECUTIVE FISCAL YEARS THROUGH JUNE 30 1993 AS OF DEC 31 HOWEVER FIRST USA STILL HAD 204 MILLION IN INTANGIBLE ASSETS LEFT TO DEPRECIATE THE ASSETS INVOLVE OVERPAYMENTS IN BUYING CREDITCARD LOANS WHEN MANAGEMENT WITH MERRILL LYNCH PARTNERS BOUGHT FIRST USA FROM LOMAS FINANCIAL IN 1989 FIRST USA WENT PUBLIC IN 1992 IN A REGULATORY FILING FIRST USA SAYS THE COMPANY BELIEVES ITS DEDUCTIONS WERE PROPER GEORGE MCCANE SENIOR VICE PRESIDENT SAYS THE COMPANY IS STUDYING THE BRUNSWICK CASE BUT HASN'T YET FORMED AN OPINION ABOUT ITS EFFECT ON FIRST USA AT PETROLEUM HEAT & POWER A STAMFORD CONN FUELOIL DEALER GEORGE LEIBOWITZ SENIOR VICE PRESIDENT FINANCE NOTES THAT THE COMPANY WAS AUDITED BY THE IRS FROM LATE 1991 UNTIL EARLY 1993 OVER INTANGIBLEASSET DEDUCTIONS RESULTING FROM 120 ACQUISITIONS OF DISTRIBUTORS FROM 1979 THROUGH 1990 IN 1992 FOR EXAMPLE THE COMPANY DEDUCTED 235 MILLION FOR ACQUIRING CUSTOMER LISTS HE SAYS PETROLEUM HEAT HASN'T NEEDED TO USE THESE DEDUCTIONS LATELY TO REDUCE TAXABLE INCOME BECAUSE IT HAS BEEN UNPROFITABLE WITH A NET LOSS WIDER THAN 8 MILLION FOR 1993 BUT THERE COULD ALWAYS HAVE BEEN A POTENTIAL PROBLEM WITH THE IRS GOING FORWARD HE SAYSSO THE BRUNSWICK CASE HELPS REMOVE ANY UNCERTAINTY ABOUT OUR COMPANY 9402040094 940204 INTERNATIONAL KLM REGISTERS QUARTERLY PROFIT OF 77 MILLION AIRLINE HAD YEARAGO LOSS TIED TO A MAJOR CHARGE STOCK OFFERING IS SLATED SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID IT SWUNG TO A PROFIT OF AROUND 15 MILLION GUILDERS 77 MILLION IN ITS THIRD QUARTER ENDED DEC 31 FROM A LOSS OF 437 MILLION GUILDERS A YEAR EARLIER THE THIRDQUARTER PROFIT WAS MUCH BETTER THAN THE 40 MILLION70 MILLION GUILDERS OF LOSSES ANALYSTS SAID THEY WERE EXPECTING ALTHOUGH THERE HAD BEEN RUMORS ON THE AMSTERDAM STOCK EXCHANGE THAT THE COMPANY WOULD REPORT A SMALL PROFIT AS EXPECTED KLM ALSO ANNOUNCED A LONGAWAITED CAPITAL ISSUE OF 20 MILLION COMMON SHARES TO BE SOLD IN MARCH A FILING WITH THE US SECURITIES AND EXCHANGE COMMISSION WILL BE MADE SHORTLY THE DUTCH FLAG CARRIER SAID KLM ADDED THAT THE DUTCH GOVERNMENT INTENDS TO MAINTAIN ITS 382 STAKE IN KLM BY BUYING SOME OF THE COMMON STOCK BEING OFFERED IN MARCH AS WELL AS BY PURCHASING PREFERENCE SHARES TO BE ISSUED BY THE COMPANY AT THE CURRENT KLM SHARE PRICE OF AROUND 48 GUILDERS THE COMMON STOCK ISSUE ALONE WOULD RAISE THE EQUIVALENT OF NEARLY ONE BILLION GUILDERS THE MAJOR FACTOR BEHIND THE SWING TO A PROFIT IN THE LATEST THIRD QUARTER FROM THE HUGE LOSS A YEAR EARLIER IS A 300 MILLIONGUILDER CHARGE KLM BOOKED A YEAR AGO TO COVER THE WRITEOFF OF ITS THENREMAINING INVESTMENT IN NORTHWEST AIRLINES KLM HOLDS 20 OF THE COMMON STOCK IN NORTHWEST PLUS AROUND 300 MILLION OF SUBORDINATED PREFERRED BONDS IN THE THIRD QUARTER OF FISCAL 1994 KLM HAD A ONE MILLIONGUILDER PRETAX LOSS ON ITS MINORITY HOLDINGS COMPARED WITH A 355 MILLIONGUILDER DEFICIT THAT INCLUDES THE CHARGE A YEAR EARLIER BUT DUE TO LAST YEAR'S NORTHWEST WRITEOFF KLM ISN'T ANY LONGER EXPOSED TO THE US AFFILIATE'S LOSSES MEANTIME THE LATEST FISCAL THIRDQUARTER NET PROFIT WAS BUOYED BY 11 MILLION GUILDERS OF PRETAX EARNING FROM ASSET SALES THERE WASN'T ANY SUCH PROFIT A YEAR EARLIER ANOTHER FACTOR FOR THE RETURN TO PROFIT LAST QUARTER WAS THAT KLM WAS ABLE TO HOLD OPERATING COSTS STEADY WHILE REVENUE ROSE 71 FOR THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR KLM SWUNG TO A NET PROFIT OF 260 MILLION GUILDERS OR 439 GUILDERS A SHARE FROM THE YEAREARLIER LOSS OF 229 MILLION GUILDERS OR 434 GUILDERS A SHARE REVENUE ROSE 3 TO 662 BILLION GUILDERS FROM 646 BILLION KLM REITERATED ITS POSITIVE VIEW THAT IT WILL POST A SLIGHT NET PROFIT FOR THE FULL FISCAL YEAR ENDING NEXT MARCH 31 BUT BECAUSE OF THE USUAL SEASONAL SLACKNESS IN THE JANUARYMARCH PERIOD THE FOURTH QUARTER WILL SHOW A LOSS KLM ADDED SEPARATELY KLM SAID THE CHAIRMAN OF THE BOARD OF SUPERVISORS IS STEPPING DOWN FOR HEALTH REASONS THE AIRLINE SAID 61YEAROLD MAX ALBRECHT WILL BE SUCCEEDED BY THE CURRENT VICE CHAIRMAN OF THE SUPERVISORS CJ OORT THE SUPERVISORY BOARD OF A DUTCH COMPANY OVERSEES THE BOARD OF DIRECTORS AND HAS A SAY IN STRATEGIC MATTERS 9402040093 940204 TWO DREAMERS ONE DREAM TO BE MEDIA KINGS TED ROGERS' BID WOULD FORTIFY CABLE EMPIRE BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL LIKE A BELEAGUERED GENERAL EDWARD TED ROGERS SPREADS OUT A MAP OF ONTARIO AND DESCRIBES THE BATTLE LINES ROGERS COMMUNICATIONS INC SERVES CABLE CUSTOMERS IN THE RED AREAS MACLEAN HUNTER LTD IN THE BLUE ZONES BUT THE TELEPHONE COMPANY IS EVERYWHERE YOU JUST HAVE TO KNOW MILITARY HISTORY TO KNOW WHAT WILL HAPPEN MR ROGERS SAYS WE'LL BE ENCIRCLED AND WE'LL BE WIPED OUT IT IS TO CONSOLIDATE THE BLUE AND RED FORCES MR ROGERS SAYS THAT HE PLANS A TAKEOVER OFFER FOR MACLEAN HUNTER BY ROGERS COMMUNICATIONS OF WHICH HE IS PRESIDENT CHIEF EXECUTIVE OFFICER AND CONTROLLING SHAREHOLDER TERMS OF ROGERS' OFFER FOR 83 OF MACLEAN HUNTER'S STOCK WON'T BE DECIDED UNTIL A ROGERS BOARD MEETING TODAY BUT THE CURRENT VALUE OF THOSE SHARES IS THREE BILLION CANADIAN DOLLARS US226 BILLION CANADA HASN'T YET HAD THE FLURRY OF CROSSMEDIA ACQUISITIONS THAT IS SWEEPING THE US BUT REGULATIONS PREVENTING TELEPHONE COMPANIES FROM BUYING MAJOR CABLE OPERATORS ARE UNDER REVIEW AND MR ROGERS WANTS TO BE READY JUST IN CASE HE ALSO WANTS TO EXPAND THE SUBSCRIBER BASE FOR MULTIMEDIA OFFERINGS HE IS DEVELOPING CANADIAN REGULATORS WILL TAKE A CLOSE LOOK AT ANY LINKUP BETWEEN ROGERS COMMUNICATIONS THE NATION'S LEADING CABLETV OPERATOR AND MACLEAN HUNTER WHICH RANKS FOURTH BECAUSE TOGETHER THEY ACCOUNT FOR 35 OF THE CANADIAN CABLE BUSINESS BUT MR ROGERS SAYS REGULATORS SHOULD ALLOW CABLE COMPANIES TO CONSOLIDATE ON A REGIONAL BASIS OR YOU BREAK UP THE TELEPHONE COMPANIES AND LET THEM HAVE ALL DIFFERENT COLORS ON THEIR MAPS TOO MR ROGERS WHO IS SOMETIMES CALLED THE TED TURNER OF CANADA IS A TELECOMMUNICATIONS PIONEER IN A FAMILY THAT HAS A TRADITION OF PIONEERING HIS FATHER INVENTED THE FIRST HOME RADIO TO RUN ON HOUSE CURRENT INSTEAD OF BATTERIES AND THE YOUNGER MR ROGERS STARTED CANADA'S FIRST COMMERCIAL FM STATION WHILE HE WAS STILL IN LAW SCHOOL IN THE 1960S MR ROGERS BECAME AN EARLY CABLETELEVISION OPERATOR AND HE WENT INTO THE FLEDGLING CELLULAR TELEPHONE BUSINESS IN 1983 HE NOW CONTROLS CANADA'S LARGEST CELLULAR TELEPHONE COMPANY AND BIGGEST CABLE OPERATOR AND HE IS A MINORITY PARTNER IN UNITEL COMMUNICATIONS INC THE COUNTRY'S BIGGEST LONGDISTANCE COMPETITOR TO TRADITIONAL TELEPHONE COMPANIES MR ROGERS' FRIENDS SUCH AS DOUGLAS BASSETT A TORONTO BROADCASTING EXECUTIVE SAY HE'S GENEROUS DOWN TO EARTH AND RESPONSIVE TO CUSTOMERS DURING THE GULF WAR A CABLE SUBSCRIBER WITH FAMILY IN ISRAEL WAS UPSET WHEN MR ROGERS' COMPANY STOPPED TRANSMITTING CABLE NEWS NETWORK ON A FREE TRIAL BASIS A SALES REPRESENTATIVE TOLD THE SUBSCRIBER THAT IT WOULD TAKE A WEEK TO ADD CNN TO HIS REGULAR SERVICE SO THE SUBSCRIBER LOOKED UP MR ROGERS' NUMBER IN THE PHONE BOOK AND CALLED HIM AT HOME THE NEXT MORNING A SUNDAY ON MR ROGERS' ORDERS TECHNICIANS ARRIVED AT THE SUBSCRIBER'S HOUSE TO HOOK HIM UP TO THE NEWS CHANNEL MR BASSETT SAYS MR ROGERS NEVER SLOWS DOWN EVEN ON HOLIDAYS AT HIS COTTAGE ON THE MUSKOKA LAKES NORTH OF TORONTO TALL AND SLIM AND SPORTING A TAN FROM HIS FREQUENT GETAWAYS TO THE BAHAMAS THE 60YEAROLD MR ROGERS SAYS HIS ARM IS GETTING A LITTLE TOO CREAKY FOR TENNIS BUT HE SWIMS A LOT TO STAY FIT PUBLIC SHAREHOLDERS IN MR ROGERS' COMPANIES HAVE LITTLE VOTING POWER AND RARELY SEE A PROFIT HE CONTROLS THE BUSINESSES THROUGH SPECIAL VOTING SHARES NEW PROJECTS AND EXPANSION TAKE PRECEDENCE OVER NET INCOME THE FLAGSHIP ROGERS COMMUNICATIONS REPORTED LOSSES OF C1237 MILLION IN THE NINE MONTHS ENDED SEPT 30 AND C1803 MILLION FOR ALL OF 1992 BUT SHAREHOLDERS ARE HAPPY TO BE ABOARD BECAUSE SHARP GROWTH HAS MEANT HEFTY CAPITAL GAINS A DOLLAR INVESTED IN ROGERS COMMUNICATIONS' SHARES IN 1979 WOULD HAVE A VALUE OF MORE THAN C25 TODAY HIS EXPANSION EFFORTS HAVE FORCED MR ROGERS TO PIONEER IN THE ART OF RAISING MONEY AS WELL JUST LAST MONTH ROGERS COMMUNICATIONS ISSUED THE COUNTRY'S FIRST CANADIANDOLLAR DENOMINATED JUNK BONDS IN 1991 IT WAS THE FIRST CANADIAN COMPANY TO ISSUE LIQUID YIELD OBLIGATION NOTES OR LYONS WHICH ARE HYBRID SECURITIES THAT ARE PART STOCK AND PART BOND DESPITE THE BIG MONEY INVOLVED IN THE MACLEAN HUNTER BID MR ROGERS PLAYS DOWN THE DEAL AS MERELY A CONTINUATION OF ROGERS' GROWTH HE'S SKETCHY ON HIS PLANS IF THE ACQUISITION SUCCEEDS BUT HE HAS BIG PLANS FOR NEW MULTIMEDIA SERVICES HE MET WITH MICROSOFT CORP CHAIRMAN BILL GATES LAST MONTH AND HOPES TO TEST SOME MICROSOFT SOFTWARE IN CANADA WITHIN SIX MONTHS UNLIKE SOME OF HIS EARLIER FORAYS INTO NEW TECHNOLOGY MR ROGERS SAYS THE MACLEAN HUNTER BID POSES NO RISK HERE AT ALL IN FACT HE ADDS THERE'S A RISK IN NOT DOING IT FOR THE INDUSTRY AND FOR US SEE RELATED ARTICLE TED TURNER SEES INTO HIS FUTURE SPIES A NETWORK WSJ FEB 4 1994 9402040092 940204 WHO'S NEWS ROCKWELL INTERNATIONAL CORP ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF WILLIAM H GRAY III WAS ELECTED A DIRECTOR OF THE DIVERSIFIED HIGHTECHNOLOGY CONCERN INCREASING THE BOARD'S SIZE TO 13 MEMBERS MR GRAY 52 YEARS OLD IS PRESIDENT OF THE UNITED NEGRO COLLEGE FUND 9402040091 940204 INTERNATIONAL VOLKSWAGEN BOARD IS EXPECTED TO FIRE KORTUEM OF AUDI BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN FRANZJOSEF KORTUEM CHAIRMAN OF AUDI AG THE LUXURYCAR DIVISION OF VOLKSWAGEN AG IS EXPECTED TO BE OUSTED FROM HIS POST TODAY AT AN EXTRAORDINARY MEETING OF THE SUPERVISORY BOARD VW INSIDERS SAID BOTH AUDI AND VW PRESS OFFICES REFUSED TO COMMENT OFFICIALLY ON REPORTS OF MR KORTUEM'S IMPENDING DISMISSAL AUDI SAID MR KORTUEM WASN'T AVAILABLE FOR COMMENT MR KORTUEM WAS INSTALLED JUST 13 MONTHS AGO TO SUCCEED FERDINAND PIECH WHO BECAME VW CHAIRMAN MR PIECH WHO IS HIMSELF UNDER SEVERE PRESSURE TO TURN AROUND EUROPE'S LARGEST AND MOST TROUBLED CAR MAKER IS SAID TO WANT TO REPLACE MR KORTUEM FOR WHAT HE DEEMS TO BE UNSATISFACTORY PERFORMANCE AT AUDI AFTER POSTING A 508 MILLION MARK 2931 MILLION PRETAX PROFIT IN 1992 UNDER MR PIECH'S MANAGEMENT AUDI IS EXPECTED TO POST A 1993 LOSS OF AROUND 240 MILLION MARKS SALES IN 1993 DROPPED 25 TO 125 BILLION MARKS FROM 167 BILLION MARKS IN 1992 MR KORTUEM'S DEPARTURE WOULD COME ON THE HEELS OF MR PIECH'S DISMISSAL IN LATE SEPTEMBER OF JUAN ANTONIO DIAZ ALVAREZ THE CHAIRMAN OF VW'S SPANISH SUBSIDIARY SEAT SA MR DIAZ ALVAREZ WAS FAULTED FOR BROADSIDING VW'S RECOVERY PLANS WITH A SURPRISE LOSS OF 14 BILLION MARKS AT SEAT LAST YEAR MR KORTUEM IS EXPECTED TO BE SUCCEEDED BY AUDI'S CURRENT CHIEF FOR TECHNICAL DEVELOPMENT HERBERT DEMEL BUT PEOPLE CLOSE TO VW SAID MR DEMEL WILL BE GIVEN ONLY THE TITLE OF SPOKESMAN FOR THE MANAGEMENT BOARD NOT CHAIRMAN 9402040090 940204 YOUR MONEY MATTERS WEEKEND REPORT YOU NEED A TRANSLATOR FOR LATEST SALES PITCH BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL BACK IN THE DAYS WHEN MONEY WAS CALLED DOUGH AND HIGHNETWORTH INDIVIDUALS WERE SIMPLY CALLED RICH IT WAS A CINCH TO KNOW WHAT YOUR BROKER WAS TALKING ABOUT BUT TODAY BROKERS INSURANCE AGENTS AND OTHER FINANCIAL SALESPEOPLE USE A NEW VOCABULARY THAT GLOSSES OVER THE HARD FACT THAT THEY'RE WELL SELLING SOMETHING AND HOPING TO EARN A COMMISSION ON THE DEAL WALK INTO A BROKER'S OFFICE THESE DAYS YOU WON'T BE SOLD A PRODUCT YOU WON'T EVEN FIND A BROKER INSTEAD A FINANCIAL ADVISER WILL HELP YOU SELECT AN APPROPRIATE PLANNING VEHICLE OR OFFER A MENU OF INVESTMENT CHOICES OR OPTIONS AMONG WHICH TO ALLOCATE YOUR MONEY INVESTORS WHO AREN'T CURRENT WITH THE LINGO MIGHT FAIL TO KEEP THEIR CONSUMERS' WITS ABOUT THEM AND END UP BUYING A LEMON FORGET ABOUT BUYING HOWEVER THESE DAYS YOU'RE CHOOSING SELECTING INVESTING ALLOCATING AND OTHERWISE EMPOWERING YOUR ASSETS IF YOU UNDERSTAND THE TERMINOLOGY YOU'RE HALF WAY THERE SAYS JAMES E WILSON PRESIDENT OF THE CONSUMER FINANCIAL EDUCATION FOUNDATION IN COLUMBIA SC YOU AT LEAST KNOW WHAT QUESTIONS TO ASK HERE'S A QUICK LESSON IN DECIPHERING THE NEW DIALECT OF SELLING TAKE THE WORD COMMISSION THAT OLDFASHIONED TERM FOR WHAT BROKERS CHARGE FOR DOING BUSINESS WITH YOU COMMISSIONS ARE THE REAL REASON BROKERS TALK TO YOU AND WHY THEY MIGHT RECOMMEND ONE PRODUCT SUCH AS A VARIABLE ANNUITY WHICH PAYS A 6 COMMISSION OVER ANOTHER SUCH AS A FIXED ANNUITY WHICH PAYS 3 BUT THE NEW SALES VERNACULAR GENERALLY DOESN'T SPEAK OF COMMISSIONS EVEN THOUGH YOU STILL PAY THEM SOMETIMES THE CHARGES ARE BUILT INTO THE PRICE OF THE INVESTMENT AS THEY ARE FOR BONDS INSURANCE POLICIES AND OVERTHECOUNTER STOCKS MORE OFTEN THEY GO BY SOME OTHER NAME FOR INSTANCE WHEN YOU BUY MUTUAL FUNDS FROM A BROKER YOU TYPICALLY PAY FRONTEND LOADS WHEN YOU SELL SUCH FUNDS YOU MIGHT PAY BACKEND LOADS ALSO KNOWN AS SURRENDER PENALTIES WHICH SEEM TO IMPLY YOU'VE DONE SOMETHING WRONG THUS A SALES PITCH THAT CLAMORS THERE'S NO COMMISSION SO ALL YOUR MONEY GOES TO WORK FOR YOU AT ONCE OFTEN TRANSLATES TO THERE'S A DOOZY OF A FEE WHEN YOU TAKE YOUR MONEY OUT TO COMPLICATE MATTERS FURTHER MANY MUTUAL FUNDS SOLD BY BROKERS DON'T HAVE FRONTEND OR BACKEND LOADS BUT THAT DOESN'T MEAN THEY'RE NO LOAD FUNDS LIKE THOSE SOLD DIRECTLY TO INVESTORS BY MUTUALFUND COMPANIES RATHER IT PROBABLY MEANS THE BROKER IS HAWKING CLASS C SHARES WHERE SALES CHARGES ARE ROLLED INTO THE FUND'S ANNUAL EXPENSES INSTEAD OF COMMISSIONS YOU HAVE EXPENSE RATIOS THAT ARE ABOUT TWICE AS HIGH AS THOSE FOR OTHER FUNDS FOR INVESTORS IT ENDS UP BEING THE SAME THING INDEED WHENEVER A BROKER MAKES A POINT OF INSISTING THERE'S NO COMMISSION AT ALL START LOOKING FOR ONE NO MATTER WHAT ANYONE SAYS YOU CAN COUNT ON THIS THERE'S ALWAYS A COMMISSION THESE PEOPLE DON'T PUSH THESE PRODUCTS FOR FREE INSURANCE AGENTS LIKEWISE ABHOR THE USE OF COMMISSIONS THE WORD THAT IS AND BECAUSE INSURANCE SALESPEOPLE AREN'T REQUIRED TO DISCLOSE SUCH CHARGES UNSCHOOLED INVESTORS MAY THINK THEY DON'T EXIST IN REALITY INSURANCE POLICIES HAVE AMONG THE HIGHEST COMMISSIONS OF ANY FINANCIAL PRODUCT RUNNING AS HIGH AS 100 OF INITIAL INVESTMENTS IF YOU PLUNK DOWN A 13000 FIRSTYEAR PREMIUM FOR WHOLELIFE OR UNIVERSALLIFE INSURANCE ROUGHLY 9000 WOULD GO TO THE AGENT AS A COMMISSION ABOUT 2000 WOULD GO TO THE GENERAL AGENT AS COMMISSION AND THE REMAINING 2000 WOULD GO TO COVER OTHER MARKETING COSTS THAT'S WHY IF YOU CANCEL YOUR POLICY IN THE EARLY YEARS YOU WALK AWAY EMPTYHANDED TO BE SURE AGENTS DO DISCUSS COMMISSIONS AMONG THEMSELVES BUT WHEN PRESSED IN PUBLIC THEY INSIST THAT REGULATORS LIMIT SUCH CHARGES TO 50 OR SO OF THE FIRSTYEAR PAYMENTS COMMISSIONS ABOVE THAT LEVEL ARE SIMPLY RENAMED EXPENSE ALLOWANCE REIMBURSEMENTS SAYS CONSUMER FINANCIAL'S MR WILSON AND WHAT ARE THOSE AGENTS SELLING ANYWAY NOTHING SO PROSAIC AS LIFE INSURANCE INSTEAD THEY PEDDLE SUCH EUPHEMISMS AS PRIVATE RETIREMENT ACCOUNTS COLLEGE SAVINGS PLANS AND CHARITABLE REMAINDER TRUSTS PETER KATT AN INSURANCE ADVISER IN WEST BLOOMFIELD MICH SAYS HE EVEN SAW A POLICY MARKETED AS AN INTERMEDIATETERM BOND FUND WITH A MORTALITY CHARGE INCREASINGLY THE LIFE INSURANCE INDUSTRY SPENDS ITS TIME TRYING TO CONCOCT WAYS TO AVOID USING THAT TERM SAYS JOHN R GRAHAM OF GRAHAM COMMUNICATIONS AN INSURANCE MARKETER BASED IN QUINCY MASS SALESMEN AND BROKERS HAVE ALSO BEEN EXPUNGED FROM THE NEW SALES LEXICON INSURERS NOWADAYS RELY ON ESTATE PLANNING SPECIALISTS RETIREMENT PLANNING SPECIALISTS AND BENEFITS SPECIALISTS TO SELL THEIR POLICIES YOU RARELY SEE A BUSINESS CARD FROM A LIFE INSURANCE AGENT THAT HAS THE WORD INSURANCE' ON IT SAYS MR GRAHAM THE LAST THING THEY WANT TO BE KNOWN AS IS AN INSURANCE AGENT BECAUSE THEY DON'T THINK ANYONE WILL WANT TO TALK TO THEM ON WALL STREET MEANWHILE IT'S THE FINANCIAL CONSULTANTS AND INVESTMENT ADVISERS WHO DO THE TOUTING THESE DAYS THEY WERE CALLING THEMSELVES FINANCIAL PLANNERS FOR A WHILE BUT PLANNING DIDN'T HAVE THE SAME SEX APPEAL AS ADVISING IT'S A WAY TO IMMUNIZE YOURSELF FROM CRITICISM SAYS H LYNN HOPEWELL EDITOR OF THE JOURNAL OF FINANCIAL PLANNING IN FALLS CHURCH VA SUCH LANGUAGE MAKES IT HARDER TO DISLIKE BROKERS OR QUESTION THEIR MOTIVES OR ADVICE INVESTORS HAVE CODE NAMES TOO A QUICK SCAN THROUGH THE TRADE LITERATURE THAT BROKERS AND INSURANCE AGENTS READ TO PICK UP SELLING TIPS REVEALS THAT INDIVIDUALS ARE CLIENTS TO THEIR FACE AND PROSPECTS BEHIND THEIR BACKS THE BEST KIND IS A RISK TOLERANT HIGH NET WORTH INDIVIDUAL OR HNWI PRONOUNCED HENWEE WHICH IS SOMEONE WITH A LOT OF MONEY WHO IS WILLING TO TAKE A FLIER ALTERNATELY THE RISK AVERSE HNWI IS A PROSPECT WHO WILL BUY BONDS AMONG OTHER LINGUISTIC SLEIGHTS OF HAND IN COMMON USAGE THESE DAYS SAYING TAXFREE WHEN IN FACT IT'S ONLY TAXDEFERRED HIGH YIELD WHEN IT'S DOWNRIGHT RISKY AND PROJECTED RETURNS WHEN IT'S MORE LIKELY IN YOUR DREAMS GUARANTEED LIKE LITE AND ALL NATURAL MORE OFTEN THAN NOT MEANS NOTHING AT ALL 9402040089 940204 MARKETING & MEDIA NETWORKS CREATE RATINGS TEST SYSTEM OUT OF FRUSTRATION WITH NIELSEN DATA BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THREE MAJOR BROADCAST NETWORKS FRUSTRATED WITH THE QUALITY OF THE TELEVISION RATINGS PROVIDED BY AC NIELSEN CO SAID THEY ARE SETTING UP THEIR OWN EXPERIMENTAL RATINGS SERVICE THE 20 MILLION TEST SYSTEM NETWORK EXECUTIVES SAID YESTERDAY IS MEANT TO BE MORE ACCURATE AND MORE USERFRIENDLY THAN NIELSEN'S CURRENT SYSTEM MORE THAN 10 BILLION ANNUALLY IN ADVERTISING TIME ON THE THREE NETWORKS IS BOUGHT AND SOLD BASED ON THE NIELSEN RATINGS THE THREENETWORK PROJECT CALLED THE SYSTEM FOR MEASURING AND REPORTING TELEVISION IS BEING DEVELOPED THROUGH THE COMMITTEE ON NATIONAL TELEVISION AUDIENCE MEASUREMENT WHOSE MEMBERS ARE CAPITAL CITIES/ABC INC CBS INC GENERAL ELECTRIC CO'S NBC AND THE NATIONAL ASSOCIATION OF BROADCASTERS IT WILL BEGIN TESTING IN 1995 AND COULD BE TURNED INTO A NATIONAL SYSTEM TO RIVAL NIELSEN'S IN THREE YEARS IF NIELSEN DOESN'T MAKE CHANGES EXECUTIVES SAID IF WE FEEL THE NEED WE'RE PREPARED TO GO THAT ROUTE DOWN THE LINE SAID PETER CHRISANTHOPOULOS AN ABC EXECUTIVE VICE PRESIDENT NIELSEN A UNIT OF DUN & BRADSTREET CORP HAS HAD A MONOPOLY ON NATIONAL TELEVISION RATINGS SINCE A COMPETITOR BRITAIN'S AGB TELEVISION RESEARCH FOLDED ITS US OPERATIONS IN 1988 FOR LACK OF FINANCIAL SUPPORT FROM THE INDUSTRY PLANS FOR ANOTHER NATIONAL MEASUREMENT SERVICE FROM CERIDIAN CORP'S ARBITRON CO WERE ABANDONED IN SEPTEMBER 1992 CONTAM HAS BEEN TRACKING WHAT IT SAYS ARE PROBLEMS WITH THE NIELSEN SYSTEM FOR THE LAST SEVERAL YEARS INCLUDING POSSIBLE UNDERSTATEMENT OF THE NUMBER OF YOUNG VIEWERS AND DECLINING COOPERATION RATES AMONG HOUSEHOLDS THAT HAVE BEEN IN THE NIELSEN SAMPLE FOR A LONG TIME WHEN YOU'RE DEALING WITH A MONOPOLY SERVICE DETERIORATES TO SOME DEGREE AND THE RATINGS DATA ARE NOT AS ACCURATE AS YOU'D LIKE THEM TO BE MR CHRISANTHOPOULOUS SAID AT YESTERDAY'S NEWS CONFERENCE TO ANNOUNCE THE EXPERIMENT NIELSEN'S CURRENT SYSTEM BOTH UNDERSTATES AND OVERSTATES VIEWING SAID NICHOLAS SCHIAVONE AN NBC VICE PRESIDENT AND CHAIRMAN OF CONTAM IT IS NOT GOOD ENOUGH FOR THE FUTURE WHEN MEASUREMENT WILL GET MORE COMPLICATED AS THE NUMBER OF CHANNELS MULTIPLIES THE NUMBER OF TV SETS GROWS AND SETS BECOME MORE PORTABLE JOHN DIMLING PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MEDIA RESEARCH THE NIELSEN UNIT THAT DOES THE RATINGS PLAYED DOWN THE SIGNIFICANCE OF THE POTENTIAL NEW RIVAL SAYING HE WELCOMED WHAT NIELSEN COULD LEARN FROM IT I'M SURE THE NETWORKS WANT IMPROVEMENTS MADE FASTER THAN WE OR ANYONE ELSE CAN MAKE THEM HE SAID BUT ADDED I DON'T VIEW THIS AS AN ATTACK ON NIELSEN HE SAID NIELSEN'S OWN GOAL IS TO IMPROVE THE WAY IT MEASURES TELEVISION I HOPE THEY COME UP WITH SOMETHING WE CAN USE HE SAID CONTAM HIRED STATISTICAL RESEARCH INC WESTFIELD NJ TO RUN THE TEST SYSTEM BASED ON A PROTOTYPE THAT HAS BEEN OPERATING SINCE JUNE 1993 THE ESTIMATED 20 MILLION COST IS ABOUT EQUAL TO WHAT THE THREE NETWORKS CURRENTLY PAY NIELSEN ANNUALLY FOR RATINGS NIELSEN'S SYSTEM REQUIRES REWIRING THE TELEVISION SETS OF THE 4000HOUSEHOLD SAMPLE USED TO DETERMINE THE RATINGS STATISTICAL RESEARCH EXPECTS THAT PARTICIPANTS IN ITS 500HOUSEHOLD TEST WILL BE MORE ACCEPTING OF ITS PENCILTHIN DEVICE WHICH ATTACHES TO THE TV SET WITHOUT ADDITIONAL WIRES THE DEVICE DETECTS WHETHER THE SET IS ON AND TO DETERMINE WHICH SHOW IS BEING WATCHED READS A UNIVERSAL PROGRAM CODE THAT WILL BE EMBEDDED IN THE SHOW'S SIGNAL THE DATA ARE THEN SENT VIA HOUSEHOLD CURRENT AND PHONE LINES TO STATISTICAL RESEARCH STATISTICAL RESEARCH USES A REMOTECONTROL DEVICE TO DETERMINE WHO IS WATCHING THE TV SET NIELSEN'S SIMILAR SYSTEM KNOWN AS A PEOPLEMETER HAS BEEN CRITICIZED FOR BEING TOO COMPLICATED PARTICULARLY FOR CHILDREN STATISTICAL RESEARCH HAS BEEN EXPERIMENTING WITH HAVING THE DEVICE ACTUALLY TALK TO VIEWERS AND LETTING THEM TALK BACK INSTEAD OF PUSHING A BUTTON ONE NETWORK EXECUTIVE SAID CONTAM MAY ALSO DECIDE TO ABANDON ALTOGETHER MEASURING CHILDREN'S VIEWING BETSY FRANK A SENIOR VICE PRESIDENT AT ADVERTISING AGENCY SAATCHI & SAATCHI SAID THE CONTAM EXPERIMENT IS A GOOD IDEA THAT WILL HELP THE ENTIRE INDUSTRY PREPARE FOR THE FUTURE CLEARLY THE NETWORKS HAVE HAD GRIPES WITH NIELSEN FOR SOME TIME SHE SAID AND NOW THEY'RE PUTTING THEIR MONEY WHERE THEIR COLLECTIVE MOUTHS ARE AS FOR THE TEST RATINGS BEING PRODUCED BY THE COMPANIES THAT WOULD SELL OFF OF THEM MS FRANK SAID CERTAINLY THIS WILL MAKE PEOPLE QUESTION WHETHER THE INTERPRETATION OF THE NUMBERS IS SELFSERVING BUT THERE'S CONFIDENCE IN STATISTICAL RESEARCH AS BEING ETHICAL THE WHOLE INDUSTRY IS FEELING THE HOT BREATH OF THE FUTURE AS A STRAIN ON EXISTING TECHNOLOGY SAID JERRY DOMINUS A SENIOR VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON AD AGENCY CLEARLY EVERYONE WILL WELCOME THE IMPROVEMENT BUT I JUST HOPE PEOPLE ARE PREPARED TO FUND IT HE SAID REFERRING TO AGB WHICH FOLDED FOR LACK OF FINANCIAL SUPPORT FROM MOST OF THE INDUSTRY 9402040088 940204 TECHNOLOGY FCC ACTS TO KEEP PACE WITH CHANGES RESHAPING THE COMMUNICATIONS SECTOR BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION STREAMLINED ITS PROCEDURES FOR REGULATING MOBILE COMMUNICATIONS SERVICES AND APPROVED A PLAN TO LICENSE A NEW GENERATION OF WIRELESS DATA AND MESSAGE SERVICES THE NEW REGULATORY FRAMEWORK ESSENTIALLY REQUIRES UNIFORM REGULATION FOR COMMERCIAL MOBILE RADIO SERVICES WHICH INCLUDE ANY CELLULAR PHONE PAGING DISPATCH POCKETPHONE OR MOBILE DATA SERVICE THAT CONNECTS TO THE PUBLIC TELEPHONE NETWORK AND IS OFFERED TO THE PUBLIC FOR A PROFIT THE CHANGES WERE DESIGNED TO HELP THE AGENCY KEEP PACE WITH RAPID ADVANCES IN WIRELESS TECHNOLOGIES AND BRING ALL AMERICANS READY ACCESS TO THE INFORMATION HIGHWAY SAID RALPH HALLER WHO HEADS THE FCC'S PRIVATE RADIO BUREAU THE CHANGES HE SAID REPLACE A PATCHWORK APPROACH THAT WAS BECOMING UNWORKABLE AS NEW TECHNOLOGIES BLURRED THE LINES BETWEEN VARIOUS COMMUNICATIONS SERVICES WIRELESS SERVICES CARRYING PHONE CALLS TWOWAY DATA AND VIDEO PROGRAMMING ARE EXPECTED TO BECOME AN IMPORTANT PART OF THE NATION'S FUTURE COMMUNICATIONS BECAUSE THEY WILL ENABLE COMPANIES TO AVOID HAVING TO LAY FIBEROPTIC OR WIRE LINES TO REACH REMOTE AREAS WHILE MOBILE SERVICES WILL BE SUBJECT TO A HOST OF FCC REGULATIONS TO PROTECT CONSUMERS COMPANIES GENERALLY WON'T BE REQUIRED TO MAKE THEIR RATES PUBLIC BY FILING THEM WITH THE AGENCY THE AGENCY ALSO AGREED TO TAKE A NEW LOOK AT COMPETITION BETWEEN CELLULAR PHONE SERVICES THE AGENCY HAS LICENSED TWO CELLULAR CARRIERS IN EACH OF HUNDREDS OF LOCAL MARKETS ACROSS THE NATION AND WANTS TO MAKE SURE THE DUOPOLY APPROACH IS WORKING IN OTHER ACTION THE FCC CARVED UP THE COUNTRY INTO SPECIFIC LICENSING TERRITORIES FOR A NEW CATEGORY OF SERVICES KNOWN AS NARROWBAND PERSONAL COMMUNICATIONS SERVICES THE SERVICES WHICH COULD BE OFFERED IN SELECT MARKETS WITHIN THE NEXT TWO YEARS USE A SLIM PORTION OF THE AIRWAVES THEY ARE LIKELY TO INCLUDE PAGING SERVICES THAT ALLOW THE RECIPIENT TO ACKNOWLEDGE A MESSAGE AND PERHAPS MOBILE ANSWERING MACHINES THE NEW LICENSES MAY BE THE FIRST ONES THE AGENCY PUTS UP FOR BID THIS SUMMER UNDER ITS NEW AUCTION AUTHORITY BUT FIRST THE FCC MUST COME UP WITH RULES SPELLING OUT HOW IT WILL CONDUCT THE AUCTIONS THE FCC ESTABLISHED 11 NATIONWIDE LICENSES SIX MORE LICENSES IN EACH OF FIVE REGIONS SEVEN OTHERS IN MAJOR TRADING AREAS REGIONS DEFINED BY RAND MCNALLY AND TWO IN EACH BASIC TRADING AREA CITIES OR METROPOLITAN AREAS THE FCC SAID IT WOULD ALLOW INDIVIDUAL COMPANIES TO OWN AS MANY AS THREE LICENSES THE COMMISSION ALSO AFFIRMED ITS DECISION TO GRANT MOBILE TELECOMMUNICATIONS TECHNOLOGIES INC KNOWN AS MTEL ONE OF THE 11 NATIONWIDE LICENSE BASED ON THE COMPANY'S PIONEERING TECHNOLOGY 9402040087 940204 FOREIGN EXCHANGE DOLLAR POSTS SURGE AGAINST THE MARK ON SPECULATION FED WEIGHS RATE BOOST BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SURGED AGAINST THE MARK ON SPECULATION THE FEDERAL RESERVE IS BRACING FOR A RATE INCREASE AFTER EARLIER TAKING A DRUBBING ON A BUNDESBANK DECISION TO LEAVE RATES UNDISTURBED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17415 MARKS UP FROM 17336 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10814 YEN UP FROM 10788 YEN STERLING WAS TRADING AT 14870 DOWN FROM 14955 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10840 YEN AND AT 17423 MARKS INITIALLY THE DOLLAR FLOUNDERED ON THE DECISION BY THE BUNDESBANK'S GOVERNING BOARD TO LEAVE ITS BENCHMARK DISCOUNT AND LOMBARD RATES UNCHANGED THE DOLLAR'S DECLINE WAS GIVEN FURTHER IMPETUS BY UNEXPECTEDLY BEARISH US EMPLOYMENT STATISTICS SHOWING WEEKLY UNEMPLOYMENT CLAIMS HAD SPIRALED UPWARD BY 59000 TO 422000 FOR THE WEEK ENDED JAN 29 COMPARED WITH FORECASTS OF A RISE OF ONLY 31000 THE COMBINATION OF STEADY GERMAN INTEREST RATES AND BEARISH US ECONOMIC NEWS PILOTED THE DOLLAR TO AN INTRADAY LOW OF 17285 MARKS BUT THE US CURRENCY'S SLIDE WAS REVERSED BY SPECULATION OVER THE FED'S DECISION NOT TO INTERVENE IN THE OPEN MARKETS DESPITE THE FACT THAT FED FUNDS WERE TRADING ABOVE THE PERCEIVED TARGET OF 3 THE FEDERAL FUNDS RATE THE RATE WHICH COMMERCIAL BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS IS THE FED'S MOST IMPORTANT MONEYMARKET POLICY TOOL IN THE PAST THE FED HAS TENDED TO INTERVENE WHENEVER THE RATE WAS SIGNIFICANTLY ABOVE 3 AND JUST PRIOR TO THE USUAL INTERVENTION PERIOD THE RATE STOOD AT 3 1/8 TO MANY TRADERS THE LACK OF INTERVENTION SUGGESTED AN EARLY RATE INCREASE IS LIKELY THEY ALSO NOTED THAT THE POLICYMAKING FEDERAL OPEN MARKETS COMMITTEE IS MEETING TODAY AND TOMORROW TO DISCUSS INTERESTRATE POLICY IN ADDITION ALAN GREENSPAN FED CHAIRMAN MADE CLEAR EARLIER THIS WEEK THAT HE WANTS SHORTTERM INTEREST RATES TO RISE IN A PREEMPTIVE STRIKE AGAINST INFLATION BUT HE LEFT OPEN THE QUESTION AS TO WHEN AND HOW MUCH RATES WILL GO UP HOWEVER MANY TRADERS WERE QUICK TO DOUBT THE RATEINCREASE SPECULATION NOTING THAT THE FED'S LACK OF INTERVENTION WAS PROBABLY A TECHNICALITY PEOPLE WERE READING TOO MUCH INTO THE FED'S INACTION SAID RICK PORTER VICE PRESIDENT AT BANK BRUSSELS LAMBERT IN NEW YORK EVEN SO THE DOLLAR SHOT UP ALMOST TWO PFENNIGS IN TWO HOURS PIERCING A KEY RESISTANCE LEVEL OF 17380 MARKS TO HIT AN INTRADAY HIGH OF 17455 MARKS THE PERCEPTION WAS THAT THE US MAY COME THROUGH ON INTEREST RATES WHERE THE GERMANS DIDN'T SAID ERIK DEPAUL A TRADER AT THE ROYAL BANK OF SCOTLAND BUT AS MANY TRADERS DECIDED THEY HAD OVERREACTED THE DOLLAR LATER RETREATED A BIT ON PROFITTAKING ACCORDING TO MR DEPAUL TRADERS HEARKENED BACK TO THE NEGATIVE WEEKLY JOBLESS NUMBERS WHICH BODED BADLY FOR THE FAR MORE IMPORTANT NONFARM PAYROLL DATA DUE OUT TOMORROW IT PUT A DOWNWARD BIAS ON HOW PEOPLE WILL BE READING THE PAYROLL NUMBER MR DEPAUL SAID NOTING THAT A WEAK JANUARY EMPLOYMENT NUMBER WOULD LESSEN THE INFLATION DANGER AND THUS REDUCE THE NEED FOR AN INTERESTRATE INCREASE 9402040086 940204 LETTERS TO THE EDITOR TUTORIALS SUGGESTED IN REGARD TO YOUR JAN 19 ASIDE MR WALSH'S METER IF YOU THINK THAT 65371 PER PAGE DIVIDED BY 250 WORDS A PAGE EQUALS 2615 A WORD YOU NEED A TUTOR IN REMEDIAL ARITHMETIC I SUGGEST YOU SEEK HELP FROM THAT EXCONVICT YOU ADMIRE SO GREATLY MICHAEL MILKEN HE IS ALLEGEDLY QUITE CRAFTY WITH NUMBERS 9402040085 940204 BUSINESS BRIEFS LEXICON CORP COMPLETED THE ACQUISITION OF A JAIALAI FRONTON AND INTERTRACK WAGERING FACILITY LOCATED IN FORT PIERCE FLA FROM WJA REALTY LTD MIAMI DOING BUSINESS UNDER THE NAME WORLD JAIALAI INC ALLIEDSIGNAL INC REACHED A 10YEAR AGREEMENT VALUED AT NEARLY 100 MILLION TO REPAIR AND OVERHAUL AUXILIARY POWER UNITS FOR SOUTHWEST AIRLINES OFFSHORE PIPELINES INC SIGNED A MEMORANDUM OF UNDERSTANDING TO ACQUIRE A 49 INTEREST IN A UNIT OF CLOSELY HELD GRUPO CONSORCIO DE FABRICACIONES Y CONSTRUCCIONES OF MEXICO CITY TERMS WEREN'T DISCLOSED EXECUTONE INFORMATION SYSTEMS INC WILL REPURCHASE UP TO ONE MILLION OF ITS COMMON SHARES BY THE END OF 1994 9402040084 940204 POTOMAC WATCH BANK JOB NOBODY HERE BUT US FRIENDS BY PAUL A GIGOT SAY WHAT YOU WILL ABOUT PRESIDENT AND MRS CLINTON THEY DON'T LACK FOR BRASS THE COUPLE WHO APPOINTED A PROTEGEE AND FRIEND TO SUPERVISE MADISON GUARANTY S&L IN LITTLE ROCK NOW WANT A CHUM OF THE FIRST LADY TO REGULATE AMERICAN BANKS DOES ANYONE ELSE FIND THIS ODD IN ARKANSAS BEVERLY BASSETT SCHAFFER WAS THE CLINTON APPOINTEE WHO GAVE MADISON A REGULATORY PASS INFORMING MRS CLINTON WITH A DEAR HILLARY LETTER IN WASHINGTON RICKI TIGERT IS MR CLINTON'S NOMINEE TO LEAD THE FEDERAL DEPOSIT INSURANCE CORP TIME MAGAZINE HAS REPORTED THAT HILLARY'S FAVORITE ACTIVITY AT RENAISSANCE WEEKEND EACH YEAR IS HANGING OUT WITH FRIENDS INCLUDING FDIC NOMINEE RICKI TIGERT EVERY PRESIDENT APPOINTS PALS BUT THIS NOMINATION IS NOTABLE BECAUSE IT FITS A PATTERN OF CLINTON REGULATORY CRONYISM THAT PRODUCED WHITEWATERMADISON IN ARKANSAS AND IS NOW MIGRATING TO THE BELTWAY COMBINE THIS PATTERN WITH THE CLINTON TREASURY'S REMARKABLE PROPOSAL TO UNITE ALL US BANK REGULATION UNDER ONE AGENCY THUS GRABBING POWER FROM THE INDEPENDENT FEDERAL RESERVE AND AT LEAST SOME QUESTIONS DESERVE TO BE ASKED FOR STARTERS WHAT'S GOING ON HERE PERHAPS MS TIGERT WILL TURN OUT TO BE A TIGER OF INDEPENDENCE BUT THE BELTWAY ATTORNEY SOUNDED MORE LIKE A WHITE HOUSECAT AT HER SENATE CONFIRMATION HEARINGS ON TUESDAY NORTH CAROLINA'S LAUCH FAIRCLOTH AND NEW YORK'S AL D'AMATO GAVE HER SEVERAL CHANCES TO SAY SHE'D RECUSE HERSELF FROM ANY MATTER INVOLVING THE CLINTONS MS TIGERT REFUSED TO RECUSE OFFERING LAWYERLIKE EVASIONS AND SHE WASN'T EVEN ASKED TOUGH QUESTIONS SUCH AS WHAT ROLE SHE PLAYED IN MONITORING BCCI DURING HER SEVEN YEARS AS A FEDERAL RESERVE LAWYER MS TIGERT WAS ASSOCIATE GENERAL COUNSEL WHEN THAT CORRUPT BANKING EMPIRE INFILTRATED THE US FINANCIAL SYSTEM MOREOVER MS TIGERT WAS SLAVISH IN ENDORSING THE CLINTON ADMINISTRATION'S BANK REGULATORY HEIST THIS IS THE PROPOSAL TO CONSOLIDATE ALL REGULATORY POWERS INTO ONE NEW AGENCY OSTENSIBLY INDEPENDENT BUT IN PRACTICE BEHOLDEN TO TREASURY THE NEW BANKING CZAR WOULD IN EFFECT BE ANOTHER CLINTON PAL FROM THEIR OXFORD AND YALE DAYS EUGENE LUDWIG THE CURRENT COMPTROLLER OF THE CURRENCY THIS POWER GRAB IS BEING SOLD AS MORE REINVENTING GOVERNMENT AND SOME STREAMLINING IS DESIRABLE BUT MAYBE POLITICS ALSO EXPLAINS A LOT ONE BIG SUPPORTER IS SENATE BANKING CHAIRMAN DON RIEGLE WHO PERFECTED THE LINK BETWEEN POLITICS AND REGULATION WITH HIS EXERTIONS FOR CHARLIE KEATING MR RIEGLE WHO DOESN'T DARE STAND FOR REELECTION THIS YEAR WANTS TO GO DOWN IN HISTORY FOR SOMETHING MORE THAN BEING CHARLIE'S ANGEL TWO FORMER RIEGLE AIDES ARE NOW PUSHING CONSOLIDATION FROM KEY POSITIONS AT TREASURY AND THE COMPTROLLER'S OFFICE THE TREASURY AIDE RICHARD CARNELL ACTUALLY WROTE MUCH OF THE BURDENSOME FINANCIAL REGULATION OF RECENT YEARS SO NOW HE IS FLACKING A PROPOSAL THAT WOULD IN EFFECT GIVE HIM MORE POWER ALL IN THE NAME OF EASING THE OVERREGULATION HE HELPED CREATE HE'S NOT SHORT OF BRASS EITHER HAVING A SINGLE ALLPOWERFUL REGULATOR WOULD ALSO ENHANCE THE WELL OPPORTUNITIES FOR POLITICAL MEDIATION LAST WEEK MR CARNELL EXULTED IN PUBLIC THAT THE PROPOSAL WILL GIVE CONSUMER INTERESTS SOMETHING THEY HAVE NEVER HAD BEFORE A FEDERAL REGULATOR THAT TAKES THEM SERIOUSLY PARSE THAT SENTENCE BY CONSUMER INTERESTS HE MEANS NOT JOE DEPOSITOR BUT INTEREST GROUPS AND NADERTYPE LOBBIES TRYING TO ALLOCATE BANK LENDING VIA POLITICS FEAR OF SUCH POWER IS ONE REASON BANKERS ARE RESISTING ALL OF THIS OR AT LEAST MOST OF THEM ARE ONE LAGGARD SO FAR IS THE AMERICAN BANKERS ASSOCIATION ABA A FACT THAT HAS RAISED EYEBROWS BECAUSE OF THE PRESENCE OF CURT BRADBURY ON THE 23MEMBER ABA BOARD MR BRADBURY IS THE CEO OF ARKANSAS'S WORTHEN BANKING CORP WHICH LENT MR CLINTON'S CAMPAIGN CASH AT A TIME OF NEED IN 1992 WORTHEN HAS BEEN IN A SPAT WITH THE FED WHICH HAS BEEN TOUGHER ON WORTHEN THAN THE COMPTROLLER AND WOULD LOSE CLOUT UNDER THE CLINTON PROPOSAL DONALD OGILVIE THE ABA'S MAN IN WASHINGTON SAYS MR BRADBURY HASN'T DICTATED ABA POLICY WHICH HE EXPECTS WILL BE DECIDED NEXT WEEK IF THE ABA BLINKS EYEBROWS WILL STAY RAISED THE BIGGEST POLITICAL PLAY HERE HOWEVER IS THE SLAP AT THE FED ONE BELTWAY INSTITUTION THE CLINTON TEAM DOESN'T YET DOMINATE FED CHAIRMAN ALAN GREENSPAN AND HIS COLLEAGUES ARE FIGHTING THE RIEGLECLINTON POWER GRAB AND IN UNUSUALLY BLUNT TERMS THIS ALONG WITH BANKER RESISTANCE MEANS CONGRESS PROBABLY WON'T GO ALONG UNLESS THAT IS MR CLINTON CAN CHANGE THE FED AT LEAST THAT'S THE MESSAGE SENT BY FRANK NEWMAN A SENIOR TREASURY AIDE WHEN HE MR CARNELL AND MR LUDWIG MET LAST MONTH WITH THE EXECUTIVE COMMITTEE OF THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA WHICH IS FIGHTING THE CLINTON PLAN MR NEWMAN SAID THE ADMINISTRATION WILL GET THREE FED APPOINTMENTS IN THE COMING YEARS THE MESSAGE WAS IF WE DON'T GET YOU NOW WE'LL GET YOU LATER SAYS A WITNESS WITH FED VICE CHAIRMAN DAVID MULLINS'S SURPRISE DEPARTURE THIS WEEK THAT LATER COULD BE EVEN SOONER EVERY PRESIDENT NEEDS PALS IN HIGH PLACES BUT MAYBE NOT IN REGULATORY PLACES IF YOU'VE TAKEN ON AS MUCH WHITEWATER AS THIS PRESIDENT HAS IF MR CLINTON IS GOING TO INSIST ON NAMING CRONIES AS THE NATION'S TOP FINANCIAL REGULATORS THEN MAYBE HE CAN AT LEAST STOP TRYING TO GIVE THEM ALL OF THE REGULATORY POWER PEOPLE MIGHT GET THE WRONG IDEA 9402040082 940204 MARKETING & MEDIA ADVERTISING NUTRASWEET HOPES LAUREN HUTTON WILL EQUAL CHER'S SWEET SUCCESS BY KEVIN GOLDMAN AFTER A TWOYEAR MARKETING ROMANCE EQUAL IS NO LONGER SWEET ON CHER NUTRASWEET THE MAKER OF EQUAL ASPARTAME SWEETENER IS EMBARKING ON A NEW ADVERTISING CAMPAIGN WITHOUT THE 47YEAROLD SINGER AND ACTRESS INSTEAD NEW COMMERCIALS WILL BEGIN AIRING DURING THE WINTER OLYMPICS ON CBS WITH LAUREN HUTTON THE 50YEAROLD GAPTOOTHED FASHION MODEL NUTRASWEET FACES SEVERAL CHALLENGES AS IT AGGRESSIVELY MARKETS ITS BLUE PACKETS OF EQUAL THROUGH TELEVISION ADVERTISING ONE OF ITS RIVALS SWEET 'N LOW WHICH CONTAINS SACCHARIN PLANS A MAJOR AD BLITZ POSSIBLY BEGINNING IN APRIL FURTHERMORE NUTRASWEET'S PATENT ON ASPARTAME EXPIRED IN DECEMBER 1992 RESULTING IN CHALLENGES TO EQUAL BY PRIVATELABEL PRODUCTS CUMBERLAND PACKING THE BROOKLYN NY MAKER OF SWEET 'N LOW IS SLOWLY ROLLING OUT NATIONALLY ITS OWN ASPARTAMEBASED COMPETITOR CALLED NATRATASTE EQUAL'S NEW ADVERTISING COMES AS THE ARTIFICIALSWEETENER CATEGORY TASTES A DROP IN SALES ACCORDING TO DATA SUPPLIED BY NIELSEN MARKETING RESEARCH EQUAL'S SUPERMARKET SALES DROPPED 48 TO 1097 MILLION IN THE 52WEEK PERIOD ENDED DEC 25 SUPERMARKET SALES FOR SWEET 'N LOW FELL 32 TO 667 MILLION BOTH COMPANIES SAY SWEET 'N LOW OUTSELLS EQUAL IN SUPERMARKETS ON A UNIT BASIS EQUAL WHICH COSTS AT LEAST DOUBLE THE PRICE OF SWEET 'N LOW OUTSELLS ITS PINKPACKAGED RIVAL IN DRUG STORES AND MASSMARKET OUTLETS IN BOTH DOLLAR SALES AND UNIT SALES ACCORDING TO NIELSEN AND THE TWO COMPANIES IT IS AGAINST THIS BACKDROP THAT EQUAL IS BREAKING ITS NEW ADS ALTHOUGH NUTRASWEET EXECUTIVES DECLINE TO COMMENT ON THE AD BUDGET OLYMPICS ADVERTISING TIME IS SO EXPENSIVE THAT THE BUDGET IS EXPECTED TO BE AN INCREASE OVER LAST YEAR IN THE JANUARYTONOVEMBER PERIOD OF 1993 EQUAL SPENT 113 MILLION ON ADVERTISING ACCORDING TO COMPETITIVE MEDIA REPORTING REPLACING CHER WITH MS HUTTON IS NOT WITHOUT RISKS FOR ONE CHER PROVED TO BE A POPULAR SPOKESWOMAN IN A SEPTEMBER SURVEY OF 3000 PEOPLE BY VIDEO STORYBOARD TESTS CHER LEAPFROGGED TO THE NO 3 POSITION OF TOP TELEVISION ENDORSERS EVEN THOUGH SHE HADN'T MADE THE LIST THE YEAR BEFORE ORIGINALLY WE ENVISIONED A SERIES OF CELEBRITIES FOR OUR COMMERCIALS BUT THEN CHER CAME OUT OF THE GATE SO WELL THAT WE EXTENDED USING HER SAYS TOM HALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT WPP GROUP'S CHICAGO OFFICE OF OGILVY & MATHER EQUAL'S AD AGENCY THE DECISION TO MOVE TO ANOTHER CELEBRITY AFTER TWO YEARS COINCIDED WITH CHER'S CHOICE TO DISCONTINUE SOME PRODUCT ENDORSEMENTS SAYS DEBBIE LALLA MANAGER OF EQUAL'S MARKETING WE WANT WOMEN WHO ARE KNOWN FOR LOOKING GREAT BY TAKING CARE OF THEMSELVES WE ALSO WANT WOMEN WHO ARE OUTSPOKEN AND VERY CREDIBLE SHE ADDS MARKETING EXPERTS SAY THAT USING MIDDLEAGED CELEBRITIES AS OPPOSED TO ACTRESSES IN THEIR 20S ISN'T A FAULTY STRATEGY ALTHOUGH THEY MAY NOT APPEAL AS MUCH TO YOUNGER CONSUMERS A PERSONALITY LIKE LAUREN HUTTON SHOWS ENERGY AND VITALITY AND TIMELESSNESS SAYS LILLIAN MARESCH PRESIDENT OF GENERATION INSIGHTS A MARKETING CONSULTING FIRM IN MINNEAPOLIS SHE IS A WONDERFUL ICON WITH STAYING POWER AND WHILE MS HUTTON MAY NOT COMMAND TOPOFMIND AWARENESS AMONG CONSUMERS IN THEIR TEENS OR 20S MS MARESCH SAYS THE MODEL HAS QUALITIES WITH STRENGTHS EQUAL'S FIRST AD WITH MS HUTTON WHICH WILL AIR FEB 16 ON THE WINTER OLYMPICS WILL BE SEEN ON SUBSEQUENT NIGHTS ON SEINFELD MAD ABOUT YOU SISTERS AND ROSEANNE AS WELL AS LATE SHOW WITH DAVID LETTERMAN AMONG OTHERS MS HUTTON WILL APPEAR IN THREE COMMERCIALS THE SPOT SAID TO BE THE FAVORITE OF OGILVY AND NUTRASWEET SHOWS MS HUTTON SCRATCHING HER CHEEK SAYING MY MOTHER LIKES TO TAKE CARE OF ALL HER DAUGHTERS AND ONE DAY I JUST GOT A BOX A BLUE BOX IN THE MAIL WITH A LITTLE NOTE THAT SAID DARLING USE THIS' MR HALL SAYS THE COMMERCIAL REFLECTS A TRUE STORY VIEWERS ARE THEN TOLD BY MS HUTTON THAT SHE USES EQUAL WITH HER ESPRESSO TEA AND CEREAL SMILING HER TRADEMARK GRIN MS HUTTON BLOWS A KISS THANKS MOM SHE SAYS IN ANOTHER SPOT SHE SAYS I PRETEND TO WORK OUT ALL THE TIME AND EAT ALL THE RIGHT THINGS BUT I DON'T SHE GOES ON TO SAY THAT SHE DOES USE EQUAL HOWEVER THE COMMERCIALS REFLECT ANOTHER DIMENSION TO MS HUTTON SAYS MR HALL SHE IS OPEN FRIENDLY FUN AND HAS A TWINKLE IN HER EYE EQUAL IS JUST ANOTHER FACTOR IN THE HUTTON COMEBACK AFTER A QUIET PERIOD MS HUTTON ADORNS J CREW CATALOGS AND IN APRIL SHE SIGNED A NEW THREEYEAR CONTRACT WITH REVLON ONE ADVANTAGE MS HUTTON HAS OVER CHER IS THAT SHE ISN'T REMOTELY CONTROVERSIAL WE THOUGHT ABOUT HAVING FUN WITH THE CHER SPOTS SAYS MARVIN E EISENSTADT PRESIDENT OF CUMBERLAND PACKING WE TOYED WITH THE IDEA OF HIRING SONNY CHER'S ONETIME HUSBAND AND SINGING PARTNER BUT FOR REASONS I DON'T REMEMBER IT DIDN'T WORK OUT ANDREW BALBIRER VICE PRESIDENT OF THE TABLETOP GROUP OF NUTRASWEET SAYS MORE CELEBRITIES ARE ON THE WAY ALTHOUGH HE DECLINES TO BE SPECIFIC THE PEOPLE WE USE WILL BE TIMELESS HE SAYS NOT FLASHES IN THE PAN ANY CHANCE A MALE CELEBRITY WILL MAKE IT INTO AN EQUAL AD PROVING THAT ENDORSERS ARE CREATED EQUAL EQUAL IS A PRODUCT THAT APPEALS TO WOMEN SHOPPERS SAYS MS LALLA BUT THAT DOESN'T RULE OUT THE POSSIBILITY OF MEN ONE DAY FASHION DESIGNER DONNA KARAN AND CREATIVE BOUTIQUE ARNELL GROUP HAVE ENDED THEIR NINEYEAR RELATIONSHIP ACCORDING TO THE NEW YORK AGENCY ARNELL GROUP SAID IN A STATEMENT THAT DONNA KARAN ADVERTISING WOULD BE HANDLED BY THE CLIENT'S INHOUSE CREATIVESERVICES GROUP DONNA KARAN OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT ARNELL GROUP SAID IT WOULD CONTINUE WORKING FOR THE DESIGNER THROUGH THE SUMMER EXACT BILLINGS COULDN'T BE DETERMINED HOWEVER DONNA KARAN CO SAID IN A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT AND ITS LICENSEES PLANNED TO SPEND 25 MILLION ON ADVERTISING IN 1993 THE SEC REGISTRATION STATEMENT WAS FOR AN INITIAL PUBLIC OFFERING THAT THE COMPANY PLANNED LAST YEAR BUT LATER CALLED OFF INDUSTRY ESTIMATES PUT ACTUAL EXPENDITURES CLOSER TO 14 MILLION PETER ARNELL CHAIRMAN OF ARNELL GROUP CREATED HIGHPROFILE CAMPAIGNS FOR THE DESIGNER'S FASHION AND BEAUTYPRODUCTS LINES HIS AGENCY CAME UP WITH THE IDEA OF THE DKNY BRAND AND ALSO CREATED STRIKING PRINT ADS IN 1992 FEATURING A GLAMOROUS MODEL IN THE ROLE OF US PRESIDENT AN AGENCY GETS KNOWN BY ITS MOST VISIBLE WORK MR ARNELL CONCEDED BUT ADDED WE BOTH DECIDED OUR BUSINESSES WEREN'T GOING IN THE SAME DIRECTION AS PART OF THE SPLIT MR ARNELL SAID THE AGENCY'S TOKYO OFFICE A JOINT VENTURE WITH JAPANESE ADVERTISING GIANT DENTSU WOULD CLOSE NEON CHRYSLER AND BBDO A UNIT OF OMNICOM GROUP UNVEILED A POOL OF ADS FOR THE NEON SUBCOMPACT CAR AIMED AT THE SOCALLED GENERATION X A MARKET PRIMARILY OF TRENDCONSCIOUS BUYERS IN THEIR 20S CHRYSLER SAID 20 OF ITS 50 MILLION MARKETING BUDGET WILL BE SPENT ON NONTRADITIONALMEDIA ADVERTISING THOSE EFFORTS INCLUDE AN AD IN A SAMPLE VIDEOGAME DISK FROM ELECTRONIC ENTERTAINMENT MAGAZINE AND A MUSIC VIDEO STARRING EXBEATLE PAUL MCCARTNEY AND SEVERAL CHRYSLER MODELS THAT IS INTENDED TO DISCOURAGE DRINKING AND DRIVING CAMBODIA INTERPUBLIC GROUP'S MCCANNERICKSON SAID IT WILL OPEN AN OFFICE IN CAMBODIA UNDER AN EXCLUSIVE AGREEMENT WITH KHMER GENERAL SERVICES A CAMBODIAN TRADING COMPANY DUBBED KGS ADVERTISING IT IS MCCANN'S FIRST OFFICE IN INDOCHINA SEVERAL OTHER INTERNATIONAL NETWORKS ARE PREPARING TO SET UP SHOP IN VIETNAM BILL WHITE 64 YEARS OLD WHO RETIRED LAST YEAR AS CHAIRMAN OF MCCANN'S THAILAND OFFICE WILL BE RESPONSIBLE FOR THE OFFICE AGENCY SEARCH ITT HARTFORD INSURANCE GROUP AN ITT UNIT SAID IT HAS BEGUN A SEARCH FOR A NEW AD AGENCY TO REPLACE MCCAFFREY & MCCALL NEW YORK ITS AGENCY OF 27 YEARS MCCAFFREY WAS ABSORBED INTO SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES NEW YORK EARLIER THIS WEEK A HARTFORD INSURANCE SPOKESMAN SAID THE COMPANY HAD DECIDED TO LOOK FOR A NEW AGENCY BEFORE LEARNING THAT MCCAFFREY WOULD BE ABSORBED BY BACKER BILLINGS ARE 3 MILLION TO 5 MILLION HE SAID ACCOUNT BALLY'S HEALTH & TENNIS CORP A CHICAGO UNIT OF BALLY MANUFACTURING TAPPED THE CHICAGO OFFICE OF HAL RINEY & PARTNERS FOR ITS ESTIMATED 50 MILLION ACCOUNT PREVIOUSLY AT SUISSAMILLER SANTA MONICA CALIF 9402040081 940204 PENSION FUNDS AGAIN TURN TO REAL ESTATE BY MITCHELL PACELLE AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL REAL ESTATE IS BACK ON THE SHOPPING LISTS OF BIG INSTITUTIONAL INVESTORS WITH PUBLIC AND CORPORATE PENSION FUNDS EXPECTING TO INCREASE THEIR PROPERTY HOLDINGS BY 36 BILLION OR ABOUT 40 DURING THE NEXT THREE YEARS AFTER TWO YEARS OF CUTBACKS EVEN PENSION FUNDS THAT STILL HAVE LOSSES ON EXISTING REALESTATE INVESTMENTS ARE BITING THE BULLET AND PREPARING TO REENTER THE MARKET BUT THIS TIME AROUND THE FUNDS ARE AIMING TO BE SMARTER BUYERS SO MANY PENSION FUNDS FELT SO HELPLESS SITTING BACK WATCHING THEIR REALESTATE ASSETS DETERIORATE IN THE LATE 1980S THAT THEY'VE STARTED TAKING A MUCH MORE PROACTIVE APPROACH SAYS KEVIN LYNCH WHO ADVISES PENSION PLANS ON REAL ESTATE FOR CLEVELANDBASED TOWNSEND GROUP THE FUNDS ARE PARTICULARLY LEERY OF GETTING BURNED AGAIN BY HIRED MANAGERS IN PRIVATE INVESTMENT POOLS KNOWN AS COMMINGLED FUNDS AS A RESULT THEY'RE TIGHTENING CONTROLS ON OUTSIDE REALESTATE ADVISERS AND INSISTING ON CLEAR STRATEGIES FOR EXITING INVESTMENTS SOME BIG PENSION PLANS ARE ALSO EARMARKING BIG BUCKS FOR REALESTATE INVESTMENT TRUSTS WHICH TRADE LIKE STOCKS ON MAJOR EXCHANGES AFTER THE PAST DECADE'S BUYING BINGE PENSION PLANS NOW HAVE SOME 50 BILLION OR ABOUT HALF THEIR TOTAL REALESTATE HOLDINGS IN COMMINGLED FUNDS SPONSORED BY INSURANCE COMPANIES AND REALESTATE ADVISORY FIRMS THE SPONSORS PROMISED THE FUNDS COULD CASH IN THEIR HOLDINGS AT ANY TIME BUT WHEN THE COMMERCIAL REALESTATE MARKET STARTED COLLAPSING AFTER 1987 SO MANY INVESTORS RUSHED TO EXIT AT ONCE THAT FUND SPONSORS COULDN'T COMPLY HUNDREDS OF MILLIONS OF DOLLARS IN REDEMPTION REQUESTS ARE STILL OUTSTANDING DESPITE SUCH BRUISING EXPERIENCES PENSION FUNDS TODAY FIND THAT REAL ESTATE'S FUNDAMENTALS ARE TOO ALLURING TO RESIST FOR INSTANCE AT TODAY'S DEPRESSED PRICES MANY PROPERTIES OFFER CASHONCASH YIELDS OF 7 OR MORE IN OTHER WORDS THE RENTS AND OTHER INCOME GENERATED BY THE PROPERTIES NET OF EXPENSES AND OTHER ADJUSTMENTS AMOUNT TO AT LEAST 7 OF THE PURCHASE PRICE A HIGHER YIELD THAN MANY LONGTERM CORPORATE BONDS OFFER TODAY WHAT'S MORE WITH PROPERTY PRICES ALREADY STARTING TO RECOVER IN SOME AREAS TOTAL RETURNS ON REAL ESTATE MIGHT WELL BE EVEN HIGHER IN THE LONG RUN AT A TIME WHEN STOCKS ARE AT RECORD HIGHS AND BOND YIELDS AT LONGTERM LOWS FEW ASSETS LOOK AS GOOD AS PROPERTY TO PENSION STRATEGISTS TODAY BY 1996 PUBLIC RETIREMENT FUNDS EXPECT TO BOOST THEIR HOLDINGS TO 70 BILLION OR 47 OF TOTAL ASSETS FROM 46 BILLION OR 38 OF ASSETS TODAY ACCORDING TO A RECENT SURVEY BY GREENWICH ASSOCIATES A PENSION CONSULTANT BASED IN GREENWICH CONN CORPORATE PLANS MEANWHILE SEE HOLDINGS RISING TO 55 BILLION OR 38 OF ASSETS FROM 43 BILLION OR 35 CURRENTLY AMONG LARGE SOPHISTICATED PLANS THE MOST POPULAR ROUTE IS STILL TO BUY REAL ESTATE DIRECTLY BECAUSE THAT GIVES THE GREATEST CONTROL OVER THOSE WHO MANAGE PROPERTIES ON A DAYTODAY BASIS UNFORTUNATELY SMALL AND MIDSIZE PENSION FUNDS TYPICALLY LACK THE MEANS TO BUILD AND MANAGE DIVERSIFIED REALESTATE PORTFOLIOS ON THEIR OWN BUT TO AVOID BEING LUMPED TOGETHER WITH SCORES OF OTHER INVESTORS IN COMMINGLED FUNDS THEY'RE OPTING TO COINVEST WITH SMALL GROUPS OF LIKEMINDED PENSION FUNDS SUCH ARRANGEMENTS GIVE EACH INVESTOR MORE CLOUT AND MAKE IT EASIER FOR INDIVIDUAL FUNDS TO TAKE ACTION AGAINST HIRED MANAGERS I THINK THAT COINVESTING IS THE WAY OF THE FUTURE SAYS HOWARD HARPSTER DIRECTOR OF PENSION INVESTMENTS AT CLEVELANDBASED BP AMERICA INC IF YOU DON'T LIKE MANAGEMENT YOU CAN CAN' THEM IT ONLY TAKES THREE OR FOUR PEOPLE TO DO IT IN A COMMINGLED FUND IT TAKES A HUNDRED SO IT NEVER HAPPENED BP AMERICA HAS TEAMED UP WITH FOUR OTHER FUNDS IN A 175 MILLION LIMITED PARTNERSHIP TO INVEST IN OFFICE RETAIL AND INDUSTRIAL SPACE IN THE UNITED KINGDOM AND EUROPE MORE RECENTLY IT JOINED A STATE FUND WHICH WASN'T IDENTIFIED TO BUY A 9 MILLION APARTMENT COMPLEX NEAR RALEIGH NC THE COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION HAS SIMILARLY JOINED FORCES WITH THE SCHOOL EMPLOYEES RETIREMENT SYSTEM OF OHIO THE ALASKA PERMANENT FUND AND TWO OTHER FUNDS TO BUY RESIDENTIAL PROPERTIES THE GROUP PURCHASED A 90 INTEREST IN 12 APARTMENT PROJECTS OWNED BY PHOENIX HOME LIFE MUTUAL INSURANCE CO OF HARTFORD CONN PAYING 108 MILLION FOR THE STAKE PHOENIX WILL MANAGE THE PROPERTIES AND RETAIN THE REMAINING 10 OWNERSHIP STAKE COLORADO AND ITS COINVESTORS HAVE THE RIGHT TO FIRE PHOENIX HOME LIFE AS MANAGER IN A FAIRLY SHORT PERIOD OF TIME WITHOUT A LOT OF NOTICE AND WITHOUT LITIGATION SAYS SOL RASO COLORADO'S DIRECTOR OF REAL ESTATE WE HAVE ABSOLUTE CONTROL BUT WE DON'T HAVE TO GET INVOLVED IN MICROMANAGEMENT MEANWHILE WALL STREET INVESTMENT BANKERS NOT WANTING TO MISS OUT ON THE ACTION ARE TOUTING SECURITIZED PROPERTY IN THE FORM OF REITS SO FAR THE FUNDS HAVEN'T BEEN AVID BUYERS BECAUSE THEY WORRY THAT SUCH INVESTMENTS WOULD TOO CLOSELY TRACK THE REST OF THE STOCK MARKET AND THUS DEFEAT THE PURPOSE OF BUYING REAL ESTATE BUT THE FUNDS ARE WARMING TO THE IDEA ON JAN 18 FOR INSTANCE DIRECTORS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES DECIDED THAT REITS COULD CONSTITUTE UP TO 10 OF THE FUND'S REALESTATE HOLDINGS DURING THE NEXT TWO YEARS CALPERS INTENDS TO BUY ABOUT 250 MILLION OF PUBLICLY TRADED REITS REALESTATE ADVISERS THAT TRADITIONALLY MANAGED THE FUNDS' PROPERTY INVESTMENTS ARE ALSO JUMPING ON THE REIT BANDWAGON FOR INSTANCE ALDRIDGE EASTMAN & WALTCH OF BOSTON AND DIMENSIONAL FUND ADVISORS INC OF SANTA MONICA CALIF RECENTLY LAUNCHED A REALESTATE INDEX FUND TO INVEST IN PUBLICLY TRADED REALESTATE COMPANIES WHICH SO FAR HAS ATTRACTED 30 MILLION THE FUND WILL TRADE LIKE A NORMAL MUTUAL FUND AND IS DESIGNED TO TRACK THE RETURN OF THE ENTIRE US REALESTATE SECTOR OTHER ADVISERS SUCH AS SAN FRANCISCOBASED RREEF FUNDS HAVE PUT TOGETHER PRIVATE REITS WHICH THEY MANAGE ON BEHALF OF SMALL GROUPS OF INSTITUTIONAL SHAREHOLDERS ALTHOUGH PRIVATE REITS AREN'T EXCHANGETRADED THEY'RE SUPPOSED TO GIVE INVESTORS MORE LIQUIDITY THAN COMMINGLED FUNDS AND MORE CONTROL OVER MANAGERS MEANTIME THERE ARE TWO SEPARATE EFFORTS AFOOT TO LAUNCH A SECONDARY MARKET FOR COMMINGLEDFUND SHARES LIQUIDITY FINANCIAL GROUP OF EMERYVILLE CALIF AND ATLANTABASED SAYLOR PROPERTY CAPITAL HAVE TEAMED UP IN A VENTURE CALLED SMART WHILE BLAKE EAGLE CHAIRMAN OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S CENTER FOR REAL ESTATE IN CAMBRIDGE MASS AND A GROUP OF INDUSTRY VETERANS ARE LAUNCHING A NONPROFIT ELECTRONIC NETWORK CALLED CLEARINGHOUSE WHERE PENSION FUNDS CAN TRADE THEIR SHARES 9402040080 940204 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EAGLE HARDWARE & GARDEN INC AN AMENDED OFFERING OF 75 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES INSTEAD OF 100 MILLION AS REPORTED EARLIER VIA ALEX BROWN & SONS INC NN BALL & ROLLER INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 300000 ADDITIONAL SHARES VIA MCDONALD & CO SECURITIES INC AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS SAFETY FIRST INC AN OFFERING OF 12 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC DEAN WITTER REYNOLDS INC AND ADVEST INC 9402040079 940204 FURRY FREAKS MUTANT MICE MAKER IS SERVING SCIENCE MAINE'S JACKSON LABS EMPLOYS GENETICENGINEERING SKILLS A RUN ON DESIGNER RODENTS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BAR HARBOR MAINE EVERY OTHER TUESDAY IN THE BASEMENT OF AN OLD LABORATORY BUILDING HERE HOPE SWEET SEARCHES FOR DEVIANTS CLAD IN A LAB COAT HER HAIR PULLED BACK IN A KNOT MS SWEET MOVES BRISKLY FROM TABLE TO TABLE PAUSING AT EACH TO PLUCK WRIGGLING MICE FROM PAPER BUCKETS OF THE 20 EXAMINED THIS WEEK CULLED FROM A BREEDING COLONY OF HALF A MILLION 19 ARE REJECTED THEY ARE TOO NORMAL BUT AS THE LID IS POPPED ON THE 20TH CONTAINER A MURMUR RIPPLES THROUGH A GROUP OF LAB WORKERS LOOKING ON WOW MS SWEET EXCLAIMS THESE ARE HEADBOBBERS ALL RIGHT POSSIBLY RELATED SHE DECIDES TO ANOTHER STRAIN CALLED THE CIRCLING MUTANTS FOUR TINY MICE MOVE THEIR HEADS UP AND DOWN AS IF LISTENING TO A RHYTHM ONLY THEY CAN HEAR EXPERIMENTS ON WEIRD AND AFFLICTED MICE ARE CONSIDERED VITAL TO MEDICAL RESEARCH AND NOBODY HAS WEIRDER MICE THAN MS SWEET'S EMPLOYER THE JACKSON LABORATORY PHONE 800422MICE OVER 50 YEARS IN THE BUSINESS JACKSON SCIENTISTS HAVE BRED AND SOLD MILLIONS OF FURRY MUTANTS DIABETIC MICE MICE WITH GOITER LUNG CANCER OR HIGH BLOOD PRESSURE NERVOUS MICE FAT MICE MICE WITH PSORIASIS SPONTANEOUS MUTATIONS INCLUDING THE ONES FOUND BY MS SWEET'S PRACTICED EYE HAVE OFTEN PLAYED IMPORTANT ROLES IN UNDERSTANDING DISEASE IN HUMAN BEINGS NOW BIOTECHNOLOGY IS MAKING THE LABORATORY MOUSE STILL MORE USEFUL BY INJECTING GENES INTO MICE EMBRYOS OR BY KNOCKING GENES OUT SCIENTISTS CAN CREATE CUSTOM MUTANTS WITH HUMANOID AILMENTS NEW GOVERNMENT REGULATIONS AND ANIMALRIGHTS ACTIVISTS MEANWHILE HAVE MADE RESEARCH ON RABBITS DOGS AND MONKEYS MORE OF A HEADACHE ALL THE EXCITEMENT LED THE HARVARD HEALTH LETTER TO CALL THE 1990S THE DECADE OF THE MOUSE GRANTS AND DONATIONS TO JACKSON ARE ON THE RISE AFTER YEARS OF BARELY SQUEAKING BY THE NATIONAL INSTITUTES OF HEALTH RECENTLY GAVE MONEY TO THE NONPROFIT INSTITUTION TO HELP ESTABLISH A NATIONAL CENTER FOR BREEDING GENETICALLY ENGINEERED MICE EMPLOYEES TAKE PARTICULAR PRIDE IN FOILING THE FORCES OF NATURAL SELECTION THIS IS MOUSE MECCA SAYS PRISCILLA SKIPPY LANE 72 WHO HAS BEEN CATALOGING ODD MICE FOR 42 YEARS WE'VE GOT THE BEST SELECTION OF MUTANTS IN THE BUSINESS IN A NOON MEETING OVER SANDWICHES IN A CONFERENCE ROOM WITH A VIEW OF ACADIA NATIONAL PARK TALK TURNS TO THE LACK OF COOPERATION CREEPING INTO THE WORLD OF MOUSE RESEARCH AS MORE COMPANIES SEEK TO PROFIT FROM PATENTED MICE THESE BIOTECH COMPANIES ALL WANT TO BE THE FIRST TO COME UP WITH THE MILLIONDOLLAR MOUSE COMPLAINS MURIEL DAVISSON A SENIOR SCIENTIST AT JACKSON THEY LIKE TO CHAT ABOUT MOUSY FREAKS OF NATURE THE BEST ONE I EVER SAW WAS A FIVELEGGED MOUSE A FEW YEARS BACK SAYS CLAUDIA BASSO WHO HAS BEEN REARING RODENTS HERE FOR 13 YEARS IT HAD FEELING IN THE LEG AND EVERYTHING THAT'S NOTHING COUNTERS ANOTHER STAFF MEMBER WE STILL HAVE A SIXLEGGED SKELETON NEITHER MOUSE WAS OF MUCH MEDICAL INTEREST HOWEVER AND THEY DIDN'T REPRODUCE SEARCHING FOR MUTANTS WITH GENETIC DEFECTS WORTH STUDYING IS A LITTLE LIKE GOLD MINING YOU NEVER KNOW WHEN YOU'LL FIND SOMETHING VALUABLE MS DAVISSON SAYS THE LAB SELLS NEARLY TWO MILLION MICE A YEAR BRINGING IN 20 MILLION AND ENGAGING THE EFFORTS OF 200 OF THE LAB'S 560 WORKERS THREE TIMES A WEEK 18WHEELER TRUCKS FERRY THOUSANDS OF LIVE MICE TO BOSTON'S AIRPORT FOR SHIPMENT AROUND THE WORLD THESE MICE SELL FOR AS LITTLE AS 8 APIECE AS MUCH AS 7280 FOR A BREEDING PAIR JACKSON IS THE MOUSEGENETICS CAPITAL OF THE WORLD SAYS MELVIN BALK SCIENTIFIC DIRECTOR AT CHARLES RIVER LABORATORIES INC WILMINGTON MASS PHONE 800LABRATS WHICH IS JACKSON'S LARGEST FORPROFIT COMPETITOR CHARLES RIVER ALSO STOCKS MANY OF THE HOT NEW GENETICALLY ENGINEERED STRAINS INCLUDING ONCOMOUSE WHICH IS DESIGNED TO CONTRACT CANCER MICE MUTANTS GIVE US A WINDOW ON THE UNKNOWN SAYS JACKSON LAB DIRECTOR KENNETH PAIGEN CONSIDER STARGAZER WHOSE TRANCE LIKE SKYWARD STARE WAS FIRST SEEN IN 1985 IN A SINGLE MALE IN JACKSON'S COLONY WHEN THAT MOUSE WAS STUDIED WITH TINY ELECTROENCEPHALOGRAPH WIRES TAPED TO HIS HEAD HE BECAME AN EXPERIMENTAL MODEL FOR STUDYING THE ROLE OF DEFECTIVE GENES IN CERTAIN CASES OF EPILEPSY STARGAZER WAS MY FIRST DEVIANT MS DAVISSON EXPLAINS HER CRAMPED OFFICE IS FILLED WITH TINY STUFFED MICE MOUSE ART A MOUSE LETTER OPENER PEOPLE GIVE THEM TO ME SHE SAYS WITH A SIGH SERENDIPITY HAS PLAYED A ROLE IN MANY MICE DISCOVERIES IN 1946 A RESEARCHER WALKED INTO A ROOM HERE IDLY JINGLING HIS KEYS AND WAS STARTLED BY A COMMOTION IN ONE OF THE MOUSE CAGES LOOKING INTO IT FURTHER HE IDENTIFIED AND BEGAN BREEDING A NEW STRAIN WITH A HEREDITARY SEIZURE DISORDER TRIGGERED BY SOUND OVER THE YEARS PROMISING MUTANTS HAVE INCLUDED THE NUDE MOUSE A HAIRLESS VARIETY THAT USUALLY IS BORN WITHOUT A THYMUS GIVING IT SEVERE IMMUNE DEFICIENCIES USEFUL TO AIDS RESEARCHERS AN INBRED COUSIN THE STREAKER HAS A THYMUS BUT RELIABLY DEVELOPS THYMUS LYMPHOMAS THE SHAKER HAS A NEUROLOGICAL DEFECT AS DOES ITS COUSIN THE WALTZER WHICH HAS A MUTATION AFFECTING ITS INNER EAR AND SENSE OF BALANCE ANOTHER MORE RECENT MOUSE IS FLAKY THE POOR FELLOW SEEMS TO HAVE A BAD CASE OF DANDRUFF WHICH IS BEING EXPLORED AS A MODEL FOR PSORIASIS ONCE RESEARCHERS HAVE DECIDED THAT A MOUSE IS WORTHY OF FURTHER STUDY THE STOCK IS BRED TO STRENGTHEN THE CHARACTERISTIC THAT FREQUENTLY INVOLVES INBREEDING WITH LITTERMATES FOR SEVERAL GENERATIONS WITH SO MANY MICE SCURRYING ABOUT ONE MIGHT WONDER DOES ANYBODY GET ATTACHED TO THEM NO THEY DON'T REALLY MAKE GOOD PETS MS LANE SAYS RATS ARE BETTER THEY'RE SMARTER 9402040078 940204 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY WADE LAMBERT COSTCONSCIOUS COMPANIES MANY OF WHICH PAID HUGE SUMS IN THE 1980S TO JURY CONSULTANTS IN HIGHSTAKES CASES ARE STARTING TO INSIST ON MORE OF A NOFRILLS APPROACH TO JURYPICKING IT'S NOT THAT JURY CONSULTING HASN'T WORKED IN MANY MAJOR BUSINESS CASES AND HIGHPROFILE CRIMINAL PROSECUTIONS USING PSYCHOLOGISTS AND SOCIOLOGISTS TO PICK JURIES AND THEN PREDICT HOW JURORS ARE LIKELY TO REACT TO THE EVIDENCE HAS BECOME AS ROUTINE AS TAKING A DEPOSITION BUT IN RECENT YEARS THE FIELD HAS LOST MUCH OF ITS MYSTIQUE AS LAWYERS HAVE BECOME MORE ACCUSTOMED TO JURY CONSULTING THEY ALSO HAVE LEARNED THAT THEY DON'T NECESSARILY NEED EVERYTHING THAT IS IN A CONSULTANT'S BAG OF TRICKS AND LIKE ALL OTHER ASPECTS OF LITIGATION JURY CONSULTING HAS RAISED INTENSE CONCERNS ABOUT COST EVERYBODY IN THE FIELD IS AWARE OF THE PRESSURES THAT ARE ON THE LAW FIRMS TO CUT COSTS SAYS BETH BONORA PRESIDENT OF THE OAKLAND CALIF BRANCH OF THE NATIONAL JURY PROJECT A TRIALCONSULTING FIRM THEY WANT MORE FOR LESS THAT APPROACH IS A FAR CRY FROM THE HONEYMOON ATMOSPHERE OF THE MID1980S WHEN JURY CONSULTING FIRST WAS EMBRACED IN A BIG WAY BY COMMERCIAL LITIGATORS JURY CONSULTING ENABLED COMPANIES TO GLEAN HOW JURORS WERE LIKELY TO REACT TO DEFENSE THEORIES TO WITNESSES TO VISUAL AIDS OF ANY COLOR OR DIMENSION EVEN TO THE LANGUAGE USED IN A CLOSING ARGUMENT BECAUSE THE PROCESS SEEMED MYSTERIOUS EVEN MAGICAL LAWYERS FOR COMPANIES WERE HARDPRESSED TO BARGAIN OVER THE DETAILS OF A WORK PROPOSAL THAT COST 500000 OR MORE LAWYERS' WILLINGNESS TO PAY NEARLY ANY ASKING PRICE ALSO WAS LINKED TO THE STAKES INVOLVED IF A CONSULTANT MIGHT HELP WIN A BILLIONDOLLAR CASE IT SEEMED TANTAMOUNT TO MALPRACTICE NOT TO TAKE ADVANTAGE OF THE SERVICE TODAY THOUGH JURY CONSULTANTS HAVE SUCCEEDED IN EDUCATING LITIGATORS ABOUT THE FIELD LAWYERS FOR COMPANIES KNOW THAT A SHADOW JURY SITS THROUGH THE TRIAL AND REPORTS DAILY ON ITS IMPRESSIONS SO THAT LAWYERS CAN GET A SENSE OF WHAT THE REAL JURY MAY BE THINKING BUT THEY ALSO KNOW THAT SHADOW JURIES OFTEN AREN'T WORTH THE EXPENSE THEY KNOW THAT PRETESTING THE CASE BEFORE MULTIPLE GROUPS OF MOCK JURORS MAY BE SLIGHTLY MORE USEFUL THAN PERFORMING JUST A COUPLE OF TESTS BUT LAWYERS FREQUENTLY FIND THAT ONE OR TWO FOCUS GROUPS ARE ENOUGH AFTER YEARS OF HIRING JURY CONSULTANTS I'M A MORE COMPETENT SOPHISTICATED PURCHASER OF THOSE SERVICES TODAY SIMPLY BECAUSE OF MY EXPERIENCE SAYS THOMAS HEIDEN A DETROIT LAWYER I KNOW WHAT TO EXPECT FOR THE MONEY NOFRILLS VERSIONS OF JURY RESEARCH DRAW ON SMALLER SAMPLE SIZES AND PROVIDE LESS ANALYSIS THAN THE MORE EXPENSIVE PRODUCTS JOSEPH RICE OF JURY RESEARCH INSTITUTE IN WALNUT CREEK CALIF SAYS HIS 10YEAROLD FIRM NOW OFFERS AN A LA CARTE MENU OF INDIVIDUAL SERVICES WE DON'T COME IN AND SAY YOU NEED A 100000 PROPOSAL MR RICE ADDS A SIMPLE FOCUS GROUP STARTS AT ABOUT 5000 JURYTHINK A SMALL MINNEAPOLIS FIRM THAT BEGAN LAST YEAR SAYS THAT FOR 10000 IT WILL PUT TOGETHER A SURROGATE JURY TO HEAR A CASE BEFORE THE ACTUAL TRIAL NOT EVERYONE IS CONVINCED HOWEVER THAT THE LESS EXPENSIVE ALTERNATIVES DO MUCH FOR CLIENTS DONALD VINSON ONE OF THE EARLY LEADERS IN THE FIELD AND NOW HEAD OF DECISIONQUEST A JURYCONSULTING FIRM IN LOS ANGELES SAYS CLIENTS ARE PAYING FOR ACCURACY AND THAT THE LESS EXPENSIVE CONSULTING SERVICES CAN'T OFFER THE INSIGHT THAT MORE COMPREHENSIVE STUDIES PROVIDE INTO JURORS' MINDS IT'S NOT ONLY COSTS EVEN MORE IMPORTANT YOU'VE GOT TO DELIVER VALUE TO YOUR CLIENTS HE SAYS FOCUS GROUPS ARE REALLY IN VOGUE TODAY BECAUSE THEY ARE CHEAP AND EASY ANY DIMWIT CAN RUN A FOCUS GROUP MR VINSON'S OWN FIRM HOWEVER HAS SOME SAVINGS TO OFFER TOO HE SAYS THAT IMPROVEMENTS IN TECHNOLOGY HAVE BROUGHT DOWN THE COST OF THE RESEARCH HIS FIRM PROVIDES AS WELL AS OF THE ELECTRONIC THREEDIMENSIONAL GRAPHICS IT PREPARES FOR USE AT TRIAL VERY FEW JURY CONSULTANTS CAN COME IN AND DO ANY MEANINGFUL WORK FOR LESS THAN 50000 OR 100000 BUCKS SAYS ROBERT ZEAVIN A LOS ANGELES LAWYER WHO OFTEN USES JURY CONSULTANTS MR ZEAVIN SAYS THAT IN A RECENT TRIAL OVER ENVIRONMENTAL CLAIMS HE NOW WISHES HE HAD SPENT AN ADDITIONAL 50000 ON JURY CONSULTING A MOCK JURY WAS USED IN THE CASE TO EVALUATE REACTIONS TO OPENING STATEMENTS BUT MR ZEAVIN SAYS A MORE COMPREHENSIVE STUDY MIGHT HAVE HELPED EVALUATE HOW THE JURORS WOULD REACT TO A COMPLICATED SPECIALVERDICT FORM THAT WAS USED STILL BECAUSE OF HEIGHTENED CONCERN ABOUT COSTS THE CLIENT MIGHT NOT HAVE BEEN WILLING TO PAY FOR THE EXTRA WORK MR ZEAVIN SAYS IN HOPES OF ATTRACTING NEW CUSTOMERS AS PRICES DECLINE SOME JURY CONSULTANTS ARE TEAMING UP WITH LARGER MORE DIVERSE COMPANIES SUCH AS ACCOUNTING FIRMS AND TECHNOLOGY MANUFACTURERS WHICH OFFER THEIR OWN TRIAL SERVICES AND PRODUCTS LOS ANGELESBASED LITIGATION SCIENCES INC FORMERLY A UNIT OF ADVERTISING GIANT SAATCHI & SAATCHI LAST MONTH WAS ACQUIRED BY QUIXOTE CORP WHICH PRODUCES TRIAL GRAPHICS AND HIGHTECH DATA PRODUCTS FOR LAWYERS DECISIONQUEST HAS SOLD A STAKE TO ACCOUNTING FIRM PRICE WATERHOUSE KNOWN FOR ITS EXPERTWITNESS AND FINANCIALANALYSIS SERVICES FOR LITIGATION AND FTI CORP AN ANNAPOLIS MD JURYCONSULTING AND ENGINEERINGANALYSIS FIRM LAST SUMMER BEGAN AN ALLIANCE WITH ARTHUR ANDERSEN & CO SOME LAWYERS HOWEVER QUESTION WHETHER THE CONVENIENCE OF ONESTOPSHOPPING IS MUCH OF A FACTOR TO CLIENTS OF COURSE THERE REMAIN SOME TRIAL LAWYERS WHO WOULD JUST AS SOON NOT BE BOTHERED BY CONSULTANTS FRILLS OR NO FRILLS AFFILIATED OR INDEPENDENT WHY DO I NEED SOMEONE TELLING ME HOW TO COMMUNICATE SAYS FREDERICK P FURTH A TRIAL LAWYER IN SAN FRANCISCO AS THE CHIEF EXECUTIVE OFFICER OF ONE OF MR FURTH'S CLIENTS TOLD HIM AFTER WATCHING JURY CONSULTANTS AT WORK I THOUGHT THAT'S WHAT I PAY YOU FOR 9402040077 940204 PRICING HEALTH CARE DRUG PRICE CONTROLS WRONG PRESCRIPTION BY PATRICIA M DANZON ONE LITTLENOTICED ELEMENT OF PRESIDENT CLINTON'S HEALTH CARE REFORM PROPOSAL IS THE INTRODUCTION OF IMPLICIT PRICE REGULATION FOR PHARMACEUTICALS THE NEW ADVISORY COUNCIL ON BREAKTHROUGH DRUGS WILL DETERMINE THE REASONABLENESS OF NEW DRUG PRICES BASED ON PRICES CHARGED IN OTHER COUNTRIES AND PRODUCER COSTS FOR MEDICARE THE SECRETARY OF HEALTH AND HUMAN SERVICES CAN NEGOTIATE A SPECIAL REBATE BASED ON THE LOWEST MANUFACTURER PRICE IN ANY ONE OF MORE THAN 20 COUNTRIES THIS IS IN ADDITION TO THE 17 ACROSSTHEBOARD DISCOUNT REQUIRED FOR ALL DRUGS REIMBURSED BY MEDICARE FAILURE TO NEGOTIATE AN ACCEPTABLE REBATE CAN LEAD TO TOTAL EXCLUSION FROM MEDICARE COVERAGE A GENERAL ACCOUNTING OFFICE REPORT RELEASED BY REP HENRY WAXMAN THIS WEEK CONCLUDES THAT DRUG PRICES ARE 60 HIGHER IN THE US THAN IN THE UK BUT THIS STUDY IS BASED ON FLAWED METHODOLOGY THAT INVALIDATES ITS CONCLUSIONS MOREOVER EVEN A METHODOLOGICALLY SOUND AND MOST ARE NOT COMPARISON OF PRICES COULD NOT MEASURE THE FULL EFFECTS OF REGULATION MORE FUNDAMENTALLY THE PRESUMPTION THAT DRUG PRICES SHOULD BE THE SAME FOR ALL USERS IS MISGUIDED IN FACT PRICE DIFFERENTIALS BENEFIT MOST CONSUMERS INCLUDING US CONSUMERS USING FOREIGN PRICES TO REGULATE IMPLICITLY OR EXPLICITLY PRICES CHARGED AT HOME HAS A LONG TRADITION IN SOME COUNTRIES BUT THAT DOES NOT MAKE IT GOOD POLICY FOR THE US THE GAO'S USUK COMPARISON INCLUDES ONLY 77 LEADING BRANDED PRODUCTS AND FOR EACH PRODUCT INCLUDES ONLY ONE OF THE MANY DOSAGE FORMS STRENGTHS AND PACKAGE SIZES THAT ARE AVAILABLE THESE PACKS ACCOUNT FOR LESS THAN 10 OF US SALES AND ARE OFTEN UNREPRESENTATIVE EVEN OF THE PRODUCTS INCLUDED FOR THE LEADING US PRODUCT AMOXIL FOR EXAMPLE THE UK PRICE IS 65 HIGHER THAN THE US PRICE FOR THE PARTICULAR PACK IN THE STUDY BUT WHEN WE AVERAGE OVER ALL DOSAGE FORMS AND STRENGTHS THE UK PRICE IS THREE TIMES THE US PRICE MOREOVER THE GAO'S USUK STUDY DOES NOT GIVE GENERICS APPROPRIATE WEIGHT IN THE OVERALL PRICE COMPARISON YET GENERICS ACCOUNT FOR ONETHIRD OF ALL US PRESCRIPTIONS GENERIC MARKET SHARE WILL SURGE IN THE NEXT FEW YEARS WITH PATENT EXPIRATION DUE FOR MORE THAN 80 MAJOR PRODUCTS BY 1999 AND INSURERS INCREASINGLY REIMBURSING ONLY FOR GENERICS MY STUDY'S COMPARISON OF DRUG PRICES IN NINE COUNTRIES USING ALL SALES OF ALL MATCHING PRODUCTS INCLUDING GENERICS AND SOME OVERTHECOUNTER DRUGS REACHES VERY DIFFERENT CONCLUSIONS COMPARING PRICE PER DOSE OR UNIT CANADA GERMANY SWITZERLAND AND SWEDEN ARE MORE EXPENSIVE THAN THE US THE UK AT 24 LOWER PRICES THAN THE US IS THE LOWEST EXCEPT FOR FRANCE MY ANALYSIS APPROPRIATELY WEIGHTED TO REFLECT EACH DRUG'S IMPORTANCE TO US CONSUMERS INDICATES THAT US CONSUMERS ARE NOT AS BADLY OFF COMPARED TO FOREIGN CONSUMERS AS THE GAO HAS SUGGESTED NEVERTHELESS MY MEASURES STILL OVERSTATE THE RELATIVE PRICES OF DRUGS IN THE US BECAUSE THEY DO NOT REFLECT THE DISCOUNTS AND REBATES RECEIVED BY MANAGED CARE AND BY MEDICAID AND OTHER GOVERNMENT PROGRAMS MANAGED DRUG BENEFIT PROGRAMS ARE RAPIDLY BECOMING THE NORM AND THIS GROWTH IS ACCELERATING IT IS THESE DISCOUNTED PRICES THAT ARE THE RELEVANT BENCHMARK FOR PROSPECTIVE POLICYMAKING THUS PRICE COMPARISONS SUCH AS THE GAO'S FAIL TO MEASURE ACCURATELY THE COST OF DRUG THERAPY TO CONSUMERS THESE COMPARISONS AT ONE POINT IN TIME ALSO FAIL TO MEANINGFULLY MEASURE PRODUCER REVENUE SINCE THIS DEPENDS ON SALES OVER A DRUG'S ENTIRE ECONOMIC LIFE WHICH IS OFTEN SHORTER IN THE US BECAUSE OF REGULATORY DELAYS IN LAUNCHING DRUGS AND THE RAPID POSTPATENT ENTRY OF GENERICS BUT LET'S IGNORE FAULTY METHODOLOGY AND SUPPOSE THAT REGULATION DOES LOWER SOME PRICES IN OTHER COUNTRIES IT DOES NOT FOLLOW THAT THE US SHOULD MIMIC SUCH POLICIES PRICE REGULATION HAS LONGTERM EFFECTS NOT REFLECTED IN SIMPLE PRICE COMPARISONS ON INNOVATION DRUG AVAILABILITY AND THE HEALTH AND WELLBEING OF CONSUMERS REGULATION THAT CALIBRATES US PRICES TO FOREIGN PRICES OR TO PRODUCTION COSTS AS PROPOSED BY PRESIDENT CLINTON IS BAD ECONOMICS AND BAD INDUSTRIAL POLICY IT IGNORES THE CRITICAL ROLE OF COMMON COSTS IN THE COST STRUCTURE OF RESEARCHBASED DRUG FIRMS THE COSTS OF R&D ARE LARGELY FIXED REGARDLESS OF WHETHER ONE PATIENT OR MILLIONS OF PATIENTS ARE SERVED AND CANNOT RATIONALLY BE ALLOCATED TO SPECIFIC PATIENTS MOREOVER THE COSTS OF DRY HOLES THAT NEVER MAKE IT TO MARKET ARE REAL COSTS OF PRODUCING A SUCCESSFUL COMPOUND YET THEY CANNOT BE ATTRIBUTED TO ANY SINGLE PRODUCT STILL LESS TO A PARTICULAR PACK SOLD IN A PARTICULAR COUNTRY PRODUCTION MARKETING AND DISTRIBUTION ALSO ENTAIL SIGNIFICANT COMMON COSTS THAT CANNOT BE PRECISELY ALLOCATED TO PARTICULAR PRODUCTS THIS COST STRUCTURE MEANS THAT PRICE REGULATION GEARED TO COSTS IS INHERENTLY ARBITRARY BUT WITH A STRONG DOWNWARD BIAS REGULATORS AND OTHER POWERFUL BUYERS FACE AN IRRESISTIBLE TEMPTATION TO PAY ONLY THEIR MARGINAL COSTS WHICH ARE A TINY FRACTION OF TOTAL COSTS HOPING OTHERS WILL COVER THE COMMON COSTS SMALL COUNTRIES CAN FREERIDE INDEFINITELY WITHOUT SIGNIFICANTLY AFFECTING GLOBAL SALES AND SUCH FREERIDING MAY BE LEGITIMATE FOR LOWINCOME COUNTRIES BUT IF LARGE AFFLUENT COUNTRIES SUCH AS THE US PLAY THE SAME GAME NO ONE IS LEFT TO COVER THE COMMON COSTS OF R&D US PRICE REGULATION WOULD IMPOSE AT LEAST AN EIGHTFOLD LARGER REDUCTION ON GLOBAL REVENUES FOR RESEARCHBASED DRUG COMPANIES THAN SIMILAR REGULATION IN THE UK AND THE IMPACT ON USBASED COMPANIES WOULD BE EVEN LARGER SINCE THEIR REVENUES COME DISPROPORTIONATELY FROM THE US MARKET THE GLOBAL SUPPLY OF INNOVATIVE PRODUCTS AND OUR PREEMINENCE WITHIN THIS MARKET WOULD BOTH DECLINE REGULATING PRICES BY REFERENCE TO PRICES IN OTHER COUNTRIES IS EQUALLY MISGUIDED UNIFORM WORLDWIDE PRICES WOULD MEAN THAT MANY CONSUMERS IN LOWINCOME COUNTRIES COULDN'T AFFORD INNOVATIVE THERAPIES AND WHILE LOWERING PRICES IN RICHER COUNTRIES TO LEVELS THAT POORER ONES COULD AFFORD WOULD INITIALLY BENEFIT WEALTHY CONSUMERS THE FLOW OF INNOVATIVE DRUGS WOULD DECLINE INCLUDING MANY THAT THESE RICHER CONSUMERS WOULD HAVE BEEN WILLING TO PAY FOR EVERYONE WOULD LOSE SO WHO SHOULD PAY FOR THE COMMON COSTS CONSUMERS WHO VALUE THE SERVICES MOST ACCORDING TO WELLESTABLISHED ECONOMIC PRINCIPLES THIS LOGIC IS APPLIED IN OTHER INDUSTRIES WITH SIGNIFICANT COMMON COSTS PEAK USERS PAY MORE FOR ELECTRICITY AIRLINE PASSENGERS WITH INFLEXIBLE SCHEDULES PAY MORE SINCE AMERICANS HAVE A HIGHER DEMAND FOR MOST HIGHTECH THERAPIES THAN CONSUMERS IN MOST OTHER COUNTRIES AMERICANS SHOULD PAY MORE THAN A PRORATA SHARE OF THE COMMON COSTS OF DEVELOPING THEM IF WE DON'T WE WILL BE THE GREATEST LOSERS IN THE LONG RUN THE CURRENT INTEREST IN DRUGPRICE COMPARISONS AND REGULATION GREW OUT OF CONCERN OVER UNAFFORDABLE OUTOFPOCKET DRUG COSTS FOR THE ELDERLY THIS IS AN INSURANCE PROBLEM THAT SHOULD BE ADDRESSED BY APPROPRIATE INSURANCE NOT BY REGULATING DRUG PRICES COMPETITIVE DRUG MANAGEMENT PLANS COULD CONTROL DRUG COSTS FOR THE ELDERLY AS THEY DO FOR THE NONELDERLY LET US HOPE THAT THIS APPROACH TO THE PROPOSED NEW MEDICARE BENEFIT IS ADDRESSED AT REP WAXMAN'S HEARINGS SCHEDULED FOR TUESDAY MANAGED DRUG BENEFIT PROGRAMS USE A RANGE OF STRATEGIES THAT RESEMBLE SOME USED BY FOREIGN GOVERNMENTS BUT WHEN GOVERNMENT APPLIES THESE REGULATORY CONTROLS AS A MONOPOLY PURCHASER CONSUMERS HAVE NOWHERE ELSE TO GO IF THEY DON'T LIKE THE PACKAGE MS DANZON IS A HEALTH ECONOMIST AT THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA 9402040076 940204 PEOPLE'S FINANCIER ALABAMA PENSION CHIEF ACHIEVES A RARE FEAT HE STIRS CONTROVERSY BRONNER PUTS FUND'S MONEY IN GOLF COURSES BLASTS CROOKS' IN GOVERNMENT BULLY PULPIT ADMIRING FANS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL MONTGOMERY ALA IN MOST STATES FEW PEOPLE HAVE ANY IDEA WHO RUNS THE STATE PENSION FUND BUT ALABAMA'S PUGNACIOUS DAVID BRONNER GETS INTO SO MANY PUBLIC SCRAPES THAT HIS NAME HAS BECOME ALMOST A HOUSEHOLD WORD A FEW MONTHS AGO GOV JIM FOLSOM'S OFFICE SENT INVESTIGATORS INCOGNITO TO EXAMINE DR BRONNER'S RECORDS MOST PENSION MANAGERS WOULD HAVE TREMBLED DR BRONNER THREW THEM OUT FOR SHOWING INSUFFICIENT IDENTIFICATION THEY HAVEN'T BEEN BACK HE SAYS GOV FOLSOM DROPPED HIS INVESTIGATION DR BRONNER IN FACT HAS BUILT A STRONG POLITICAL POWER BASE AND HE USES HIS POWER TO TAKE RISKSFINANCIAL AND POLITICALTHAT WOULD TERRIFY MOST STATE FUND MANAGERS IF MOST FUND MANAGERS WANTED TO PUT PENSION MONEY INTO THE LEISURE BUSINESS FOR INSTANCE THEY WOULD DO SO BY BUYING A LEISURE COMPANY'S STOCK DR BRONNER IS DOING IT BY SPENDING 120 MILLION OF PENSION MONEY TO BUILD SEVEN HUGE GOLF COMPLEXES ACROSS THE STATE MANY PENSION MANAGERS INVEST IN REAL ESTATE BUT DR BRONNER IS BUILDING FUNDOWNED OFFICE TOWERS AND PARKING GARAGES IN DOWNTOWN MONTGOMERY SO MANY THAT HE HAS BECOME THE MOST ACTIVE DEVELOPER IN ALABAMA'S CAPITAL OFFICIALLY JUST THE BUREAUCRAT WHO MANAGES MONEY FOR TEACHERS AND STATE EMPLOYEES DR BRONNER HAS COME TO VIEW HIMSELF AS THE PERSONAL GUARDIAN OF ALABAMA'S FUTURE WHEN HE DECIDED A FEW YEARS AGO THAT THE STATE WAS STAGNATING HE LAUNCHED THE FUND ON A CAMPAIGN TO FINANCE NEW BUSINESS INVESTMENT HELPING PULL IN A CHEMICAL PLANT A PULP PLANT EVEN A WALMART DISTRIBUTION CENTER HE ALSO GIVES SPEECHES ON PET THEMES SUCH AS HOW TO REDUCE INFANT MORTALITY OVERCOME THE STATE'S TROUBLED PAST AND FIGHT THE CROOKS AND THIEVES IN GOVERNMENT WE ARE ALWAYS GOING TO HAVE CROOKS IN GOVERNMENT HE WARNED TROY STATE UNIVERSITY SENIORS IN A ROUSING SPEECH LAST DECEMBER NEVER GIVE UP NEVER GIVE UP BY GOD NEVER GIVE UP TRYING TO MAKE ALABAMA REACH ITS POTENTIAL IN A STATE WHERE THE PREVIOUS GOVERNOR LEFT OFFICE LAST YEAR AFTER BEING CONVICTED OF USING A 200000 INAUGURAL FUND FOR PERSONAL GAIN THAT KIND OF TALK HAS TURNED THE PENSION CHIEF INTO A POPULAR HERO BUT HE ALSO HAS MADE PLENTY OF ENEMIES IN HIGH PLACES HIS CRITICS ARE SAYING THEY THINK THEIR POPULIST PENSION MANAGER FINALLY HAS GONE OFF THE DEEP END OPENLY ABUSING HIS POWER WHO SAID THEY ASK THAT A PENSION MANAGER SHOULD CLEAN UP POLITICS REDEVELOP THE STATE OR POPULARIZE GOLF I THINK ALL THE PUBLICITY HAS GONE TO HIS HEAD AND HE'S GOTTEN RECKLESS WITH THE PEOPLE'S MONEY SAYS STATE FINANCE DIRECTOR JAMES WHITE ONE OF ALABAMA'S MOST POWERFUL POLITICAL APPOINTEES HE CONTENDS THAT DR BRONNER'S FANCY OFFICE BUILDINGS ARE OVERPRICED AND TO BUILD THIS ROBERT TRENT JONES GOLF TRAIL AS THE GOLF COURSES ARE CALLED THAT'S THE MOST RIDICULOUS THING I'VE EVER HEARD OF TO DO WITH RETIREMENT MONEY THE FINANCE DIRECTOR SAYS TO DR BRONNER'S CHAGRIN HIS COURSES HAVE HIT FINANCIAL TROUBLE TECHNICALLY THE 49YEAROLD OFFICIAL CAN BE REMOVED FROM HIS JOB BY THE TWO PENSION BOARDS THAT APPOINTED HIM 20 YEARS AGO SOME ALABAMA POLITICIANS HAVE BEEN TRYING TO GET RID OF HIM SINCE THE GEORGE WALLACE DAYS BUT THEY HAVE FAILED HIS STRENGTH ISN'T REALLY DUE TO HIS PENSION FUND'S PERFORMANCE IT PROBABLY HAS DONE A BIT ABOVE AVERAGE EXPERTS SAY BUT HE HAS KEPT THE MONEY WHICH HAS GROWN TO MORE THAN 13 BILLION FROM JUST 500 MILLION IN 1973 OUT OF THE HANDS OF THE MUCHMISTRUSTED POLITICIANS TO MANY IN ALABAMA INCLUDING DR BRONNER HIMSELF THAT ALONE IS A HERCULEAN ACCOMPLISHMENT WE NEED HIM TO PROTECT US FROM ALL THOSE POLITICIANS SAYS HOWELL REGISTER A TEACHER IN SOUTHEASTERN ALABAMA EVEN A VAGUE THREAT TO THE PENSION CHIEF CAN STIR UP A POPULAR OUTCRY WHEN GOV FOLSOM TRIED TO APPOINT ONE OF HIS OWN ALLIES TO A PENSIONFUND SUPERVISORY COMMITTEE LAST YEAR AN ACT THAT IN MOST STATES WOULD HAVE GONE UNNOTICED IT WAS WIDELY VIEWED AS AN ATTACK ON DR BRONNER'S INDEPENDENCE BRONNER SUPPORTERS FLOODED THE GOVERNOR'S OFFICE WITH ANGRY PHONE CALLS NEWSPAPERS WROTE EDITORIALS HOMEMADE PROTEST BANNERS HUNG FROM HIGHWAY BRIDGES THE NEW APPOINTEE RESIGNED A FOLSOM SPOKESWOMAN NOW SAYS THAT THE GOVERNOR AND DR BRONNER NEVER REALLY DISAGREED AND THAT THE GOVERNOR HAS HIGH REGARD FOR DR BRONNER EVERYONE'S AFRAID OF HIM COMPLAINS VICTOR POOLE ONE OF ALABAMA'S MOST SENIOR STATE SCHOOLBOARD MEMBERS WHO SAYS NO BUREAUCRAT SHOULD HAVE THIS KIND OF POWER I CALL HIM KING DAVID WHEN MR POOLE PROPOSED THAT THE STATE PUT LESS MONEY INTO THE RETIREMENT SYSTEM AND SPEND MORE ON SCHOOLS DR BRONNER DESCRIBED HIM AS A SLEAZE IN A SPEECH TO SCHOOL SUPERINTENDENTS DR BRONNER SAYS MR POOLE TURNED ON THE FUND AFTER BEING REFUSED A LOAN FOR A BUSINESS PROJECT MR POOLE ANGRILY DENIES SEEKING MONEY DR BRONNER CAN INTIMIDATE EVEN THE BOARDS THAT OVERSEE HIM WHEN IN ONE RECENT MEETING A BOARD MEMBER SAID DR BRONNER SHOULD BE LESS OUTSPOKEN DR BRONNER RECALLS THAT I SAID I'M THE ONE WHO GOT THE LAW CHANGED SO YOU COULD BE ON THIS BOARD' SO THEN HE SHUT UP AND WHEN ALABAMA JUDGES WHO ARE ELECTED OFFICIALS BEGAN RULING AGAINST THE FUND IN TWO CURRENT COURT CASES A FURIOUS DR BRONNER WARNED THAT PENSIONERS MIGHT HAVE TO GET INVOLVED IN JUDICIAL ELECTIONS DR BRONNER BASKS IN THE ATTENTION HE CAN PRODUCE 18 SCRAPBOOKS OF NEWSPAPER CLIPPINGS CHRONICLING HIS BATTLES HE MAY BE AMERICA'S ONLY PENSION MANAGER WHOSE OFFICE WALLS ARE COVERED WITH DOZENS OF POLITICAL CARTOONS FROM LOCAL NEWSPAPERS THEY DEPICT HIM AS RHETT BUTLER AND AS SUPERMAN FOR EXAMPLE DAVID BRONNER IS UNIQUE SAYS DEWITT BOWMAN CHIEF INVESTMENT OFFICER OF THE HUGE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM I REALLY DON'T KNOW OF ANY OTHER PUBLIC PENSION SYSTEM OFFICIAL WHO OPERATES THE WAY HE DOES MOST OF US OPERATE IN AN ARENA WHERE YOU CAN'T AFFORD TO GET INTO POLITICAL SQUABBLES BECAUSE IT'S YOUR JOB IF YOU DO DR BRONNER THRIVES ON CONTROVERSY WHEN CONCRETE FOR ONE OF HIS FUND'S MONTGOMERY OFFICE TOWERS DIDN'T MEET HIS STANDARDS HE ORDERED 36 ENORMOUS SUPPORT COLUMNS DEMOLISHED AND REBUILT WHEN HE FOUND LITTER AT ONE OF HIS FUND'S NEW GOLF COURSES HE FILLED A GOLF CART WITH THE TRASH AND DUMPED IT ON THE MANAGER'S DESK TO SEND A MESSAGE DR BRONNER SCOFFS AT SUGGESTIONS THAT HE IS POWERMAD MY THING ISN'T MONEY IT ISN'T EGO AND IT ISN'T POWER HE SAYS IT IS FIGHTING AGAINST WHAT I SEE AS THE UNINFORMED THE BAD GUYS THE CORRUPT WHO HAVE HELD ALABAMA DOWN FOR SO LONG AS FOR COMPLAINTS THAT THIS ISN'T HIS JOB HE SAYS IT IS HIS DUTY TO RETIREES TO MAKE THE STATE ADVANCE AND HE HAS PUT THAT PHILOSOPHY UNDER HIS NAME ON PLAQUES NEXT TO THE GOLFCLUBHOUSE DOORS THE SON OF A MINNESOTA POOLHALL OWNER DR BRONNER DIDN'T SET FOOT IN ALABAMA UNTIL HE WAS 24 YEARS OLD AND SCOUTING FOR A LAW SCHOOL HE EARNED BOTH A LAW DEGREE AND PUBLICADMINISTRATION DOCTORATE AT THE UNIVERSITY OF ALABAMA AND RECOMMENDED BY THE BUSINESSSCHOOL DEAN TOOK CHARGE OF THE PENSION PROGRAM WHEN HE WAS 28 HE FOUND OFFICIALS SQUIRRELING CHECKS AWAY FOR WEEKS BEFORE DEPOSITING THEM AND READILY CASHABLE BEARER BONDS BEING LEFT ON TABLES WHILE CLERKS WENT TO LUNCH HE MODERNIZED SYSTEMS AND BEGAN GROWING ASSETS DR BRONNER SAYS THAT HIS CONSERVATIVE INVESTMENT RULES LONG KEPT HIS RETURNS FROM GETTING MUCH ABOVE AVERAGE BUT THAT HE AVOIDED DISASTERS SUCH AS JUNK BONDS AND REALESTATE PARTNERSHIPS HIS RECENT MOVES INTO HIGHERRISK PROJECTS SUCH AS GOLF COURSES AND REAL ESTATE HAVE AFFECTED FUND PERFORMANCE LITTLE SO FAR LIKE OTHER PENSION MANAGERS HE IS LOOKING FOR HIGHER RETURNS IN A WORLD WHERE BOND RATES HAVE FALLEN TOO LOW TO COVER PENSION NEEDS HE EXPLAINS HE IS EVEN THINKING OF FINANCING MOVIES WHICH MOST PENSION MANAGERS AVOID HE MADE GOSSIP COLUMNS LAST SUMMER BY HAVING LUNCH IN MONTGOMERY WITH ACTOR BURT REYNOLDS DR BRONNER'S THEORY OF MOVIE FINANCE INVEST ALONG WITH EXPERIENCED PARTNERS WHO RISK THEIR OWN MONEY AND INVEST BIG I WOULDN'T DO JUST ONE OR TWO MOVIES HE EXPLAINS BUT IF SOMEONE WERE WILLING TO PUT UP MONEY WITH ME I COULD DO 10 OR 12 AND IN 10 OR 12 YOU HAVE TO HAVE A FEW WINNERS THERE ARE SOME INVESTMENTS WHERE IF YOU PUT ENOUGH MONEY IN IT YOU ELIMINATE THE RISK BUT MR REYNOLDS HASN'T GOT BACK TO HIM AND DR BRONNER SAYS THE IDEA IS ON A BACK BURNER DR BRONNER STARTED BUILDING GOLF COURSES AFTER A 1990 NATIONAL SCANDAL WHEN IT WAS WIDELY REPORTED THAT BIRMINGHAM'S SHOAL CREEK GOLF CLUB SITE OF THE PGA CHAMPIONSHIP THAT YEAR WAS SEGREGATED ALL I WAS SEEING WAS MY WORK OF 20 YEARS GETTING BLOWN AWAY BY ALL THESE ISSUES BEING RAISED AGAIN HE SAYS A GOLFING ENTHUSIAST WHO KEEPS A PHOTO OF HIMSELF WITH ARNOLD PALMER IN HIS OFFICE DR BRONNER BUILT SEVEN TOPDRAWER PUBLIC FACILITIES EACH WITH 36 TO 54 HOLES FINANCE DIRECTOR WHITE COMPLAINS THAT HE CAN'T GET ENOUGH DETAILS ON THAT OR OTHER SUBJECTS WITH THE TWO MEN FEUDING OPENLY LAST SUMMER MR WHITE REQUESTED EXTENSIVE FIGURES ON PENSION FINANCE DR BRONNER SAID THE REQUEST WAS FAR TOO DETAILED AND WROTE TO MR WHITE THAT THE PENSION PROGRAM IS NOT LIKE A SMALL INVESTMENT ACCOUNT AT THE LOCAL BANK ASH WILLIAMS WHO HEADS FLORIDA'S RETIREMENT SYSTEM SAYS HE LOOKED INTO GOLF AND MOVIES AND DECIDED BOTH WERE FAR TOO RISKY CALIFORNIA'S MR BOWMAN HOWEVER CALLS DR BRONNER A GIFTED DEALMAKER AND ADDS IF IT IS PROPERLY MONITORED AND THE PERSON HAS THE RIGHT SKILLS WHY NOT MAKE USE OF THEM BUT COSTS SOARED AND THE GOLF PROJECT WOUND UP MORE THAN 20 OVER BUDGET WITH THE COURSES ONLY NOW BECOMING FULLY OPERATIONAL DR BRONNER SAYS HE WON'T KNOW FOR A YEAR OR TWO HOW THEY WILL FARE BUT ON PURELY FINANCIAL GROUNDS HE SAYS HE NOW COULDN'T JUSTIFY BUILDING THEM AFTER INITIALLY SHARING OWNERSHIP WITH A DEVELOPMENT GROUP THAT RAN INTO FINANCIAL TROUBLE THE PENSION FUND TOOK FULL CONTROL LAST SUMMER IF WE'RE GOING TO CRASH HE SAYS I WANT TO BE IN THE COCKPIT HOWEVER DR BRONNER RECENTLY EMPHASIZED TO HIS BOARD WHAT HE CALLED THE COURSES' ECONOMIC BENEFITS THEIR ABILITY TO PULL IN TOURISTS AND CORPORATE INVESTMENT IF YOUR STATE IS IN THE BOTTOM FIVE OR 10 YOU'VE JUST GOT TO DO IT BECAUSE IT IS THE ONLY WAY TO CHANGE THE DIRECTION OF YOUR STATE HE SAYS HE ADDS IN AN INTERVIEW LATER THAT THE PROJECT REPRESENTS ONLY A TINY PART OF THE FUND'S PORTFOLIO WORST CASE SCENARIO WE END UP LOSING A LITTLE AND SELLING IT AND THEN ALABAMA STILL HAS SOME BEAUTIFUL GOLF COURSES HE SAYS ANYWAY HE STILL ISN'T SHYING AWAY FROM RISK HE IS SPENDING MILLIONS OF DOLLARS TO REFURBISH A HUGE NEW YORK OFFICE TOWER AT 55 WATER ST ON MANHATTAN'S SOUTHERN TIP INITIALLY A LENDER TO THE PROJECT HIS FUND ACQUIRED MAJORITY CONTROL AFTER THE OWNER THE US UNIT OF OLYMPIA & YORK DEVELOPMENTS LTD RAN INTO DEBT TROUBLE HE IS AS COMBATIVE AS EVER WHEN MAY DEPARTMENT STORES CO TRIED TO PREPAY SOME HIGHINTEREST BONDS HE PERSUADED OTHER PENSION MANAGERS TO HELP HIM CHALLENGE THE MOVE IN COURT THE CASE WHICH COULD SET A MAJOR PRECEDENT IS BEING HEARD IN STATE COURT IN MONTGOMERY AND HE IS CONTINUING TO STIR UP CONTROVERSY AT HOME ONE OF HIS MOST POTENT WEAPONS IS A MONTHLY NEWSLETTER THAT HE WRITES FOR THE 223000 RETIREMENTPROGRAM MEMBERS COUNTING THEIR RELATIVES AND FRIENDS HE FIGURES IT GETS HIS IDEAS INTO AS MANY AS 40 OF ALABAMA'S HOMES WHEN HE WANTS TO APPLY PRESSURE HE ISN'T ABOVE PUBLISHING SOMEONE'S HOME PHONE NUMBER AND URGING READERS TO CALL HE DOESN'T MINCE WORDS A RECENT NEWSLETTER ARTICLE ABOUT JUDGES SEEKING HIGHER PENSIONS WAS HEADLINED UNBELIEVABLE GREED AND IN NOVEMBER A STRONGLY WORDED ARTICLE ACCUSED FINANCE DIRECTOR WHITE THE STATE'S HIGHESTRANKING BLACK APPOINTED OFFICIAL OF UNDULY FAVORING BLACKS FOR TWO STATE JOBS THE ARTICLE WAS CRITICIZED BY ALMOST EVERY CIVILRIGHTS ORGANIZATION IN ALABAMA BUT DR BRONNER SAYS HE STANDS BY HIS ACCUSATIONS AS THE CARTOONS IN HIS OFFICE ATTEST HE HAS WEATHERED OTHER STORMS LATE IN THE 1970S HE EXPOSED BRIBERY IN STATE CONTRACTS IN THE 1980S HE TRIED TO FORCE BELOVED UNIVERSITY OF ALABAMA FOOTBALL COACH PAUL BEAR BRYANT TO RETIRE AT AGE 70 LIKE OTHER STATE EMPLOYEES COACH BRYANT RENDERED THE ISSUE MOOT BY DYING DR BRONNER LATER OUTRAGED FREEDOMOFTHEPRESS ADVOCATES BY TRYING BUT FAILING TO BUY MONTGOMERY'S INFLUENTIAL NBC TELEVISION AFFILIATE WITH PENSION MONEY DR BRONNER SAYS HIS ACTIVIST INVESTING DATES FROM THE MID1980S WHEN ALABAMA WAS REPORTED NEAR THE BOTTOM OF THE NATION IN LITERACY INFANT MORTALITY AND HIGHSCHOOL GRADUATION RATES HE WAS STRONGLY INFLUENCED BY HIS FATHER WHO BELIEVED YOU CAN'T SOLVE BIG PROBLEMS UNLESS YOU TAKE CARE OF SMALL ONES SUCH AS CLEANLINESS I SCRUBBED MY FATHER'S POOL HALL EVERY SATURDAY NIGHT HE SAYS IT WAS THE CLEANEST DAMN POOL HALL IN MINNESOTA TODAY DR BRONNER WRITES MONTGOMERY MAYOR EMORY FOLMAR AS OFTEN AS ONCE A WEEK TELLING HIM WHERE HE HAS SEEN LITTER WEEDS OR BROKEN STREET LIGHTS THE MAYOR WHO INITIALLY DISLIKED THE MEDDLESOME PENSION CHIEF HAS BECOME A BIG FAN HE APPLAUDS THE DOWNTOWN BUILDING SPREE AND EVEN DR BRONNER'S CRITICS AREN'T SURE THE LATEST CONTROVERSY WILL WEAKEN HIS POPULARITY HE'S ROCK SOLID LAMENTS JOHN TYSON JR THE ONLY SCHOOLBOARD MEMBER WHO IS BACKING MR POOLE IN HIS ARGUMENT WITH DR BRONNER 9402040075 940204 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 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 318 60 TO 89 DAYS 320 90 TO 119 DAYS 325 120 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 253 ONE MONTH 258 TWO MONTHS 261 THREE MONTHS 277 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 309 ONE MONTH 321 THREE MONTHS 339 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 311 60 DAYS 317 90 DAYS 321 120 DAYS 327 150 DAYS 331 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 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 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 586 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 693 60 DAYS 7 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 688 60 DAYS 698 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9402040074 940204 WHAT'S NEWS WORLDWIDE THE PRESIDENT LIFTED A 19YEAROLD US TRADE EMBARGO AGAINST VIETNAM THE PRESIDENT SAID HE BELIEVED THE STEP WOULD FURTHER EFFORTS TO GET A FULL ACCOUNTING OF AMERICANS MISSING IN VIETNAM HE INSISTED THAT REMOVING THE TRADE EMBARGO WASN'T THE SAME AS RESTORING FULL DIPLOMATIC RELATIONS WITH HANOI SAYING THE US IS DEMANDING MORE ANSWERS ON THE MIA ISSUE THE DECISION WILL SET OFF A RACE BY US COMPANIES TO CATCH UP WITH FOREIGN COMPETITORS IN VIETNAM ONE OF ASIA'S FASTESTGROWING MARKETS CLINTON WHO AVOIDED MILITARY SERVICE IN VIETNAM PLAYED DOWN THE BUSINESS OPPORTUNITIES IN DEFERENCE TO THE FAMILIES OF MISSING SOLDIERS MANY VETERANS GROUPS OPPOSED LIFTING THE EMBARGO THE SENATE CONFIRMED WILLIAM PERRY TO BE US DEFENSE SECRETARY THE 970 VOTE CAME SLIGHTLY MORE THAN A WEEK AFTER CLINTON NOMINATED PERRY UNTIL NOW THE NO 2 PENTAGON ADMINISTRATOR TO SUCCEED LES ASPIN PERRY WAS SWORN IN LAST NIGHT TRANSPORTATION OFFICIALS UNVEILED NEW COMPREHENSIVE REGULATIONS THAT INSTITUTE ALCOHOL TESTING AND EXPAND DRUG TESTING IN THE TRANSPORT INDUSTRIES THE RULES CALL FOR RANDOM ALCOHOL AND DRUG TESTS FOR PILOTS TRUCKERS BUS DRIVERS TRAIN ENGINEERS AND OTHERS IN JOBS THAT AFFECT PUBLIC SAFETY BOSNIAN SERBS BOWED TO A UN THREAT OF FORCE AND REMOVED A ROADBLOCK OUTSIDE SARAJEVO GIVING PEACEKEEPERS ACCESS TO THE CAPITAL A DAY EARLIER THE NEW UN MILITARY COMMANDER IN BOSNIA GEN MICHAEL ROSE PROMISED A HARDNOSED EFFORT TO AID CIVILIANS AND THREATENED TO USE COMBAT VEHICLES TO FORCE A WAY PAST THE ROADBLOCK NATION OF ISLAM LEADER FARRAKHAN SAID HE HAD DISMISSED A TOP AIDE FOR MAKING REPUGNANT ANTISEMITIC REMARKS IN A NOVEMBER SPEECH THAT SPARKED DENUNCIATIONS IN CONGRESS BUT FARRAKHAN COUPLED HIS REBUKE WITH AN ATTACK ON A JEWISH GROUP THE ANTIDEFAMATION LEAGUE WHICH HE CALLED SELFCENTERED AND ANTIBLACK JAPAN'S RULING COALITION SHELVED A DAYOLD TAXCUT PLAN THAT HAD THREATENED TO TOPPLE THE HOSOKAWA GOVERNMENT BUT FINANCE MINISTRY OFFICIALS PREDICTED A PACKAGE WITH TAX CUTS WILL BE WORKED OUT BEFORE THE PRIME MINISTER MEETS WITH CLINTON IN WASHINGTON NEXT FRIDAY EPA CHIEF BROWNER ANNOUNCED THE ADMINISTRATION'S PLAN FOR REWRITING THE SUPERFUND LAW TO MIXED REVIEWS FROM MEMBERS OF CONGRESS ENVIRONMENTALISTS AND INDUSTRY THE SPACE SHUTTLE DISCOVERY BLASTED OFF FROM CAPE CANAVERAL FLA CARRYING FIVE US ASTRONAUTS AND A COSMONAUT ON AN EIGHTDAY RESEARCH MISSION THE HEAD OF RUSSIA'S SPACE PROGRAM PRAISED THE APPARENTLY FLAWLESS LIFTOFF CONSIDERED A PRELUDE TO A SHARED SPACE STATION THE ADMINISTRATION IS SEEKING TO BOOST SPENDING ON JOBTRAINING PROGRAMS BY 13 TO OVER 7 BILLION FOCUSING ON MIDDLECLASS UNEMPLOYED WORKERS BUT ADDING FUNDS FOR THE INNERCITY POOR MEXICO'S DEPUTY FOREIGN MINISTER ISSUED A STATEMENT CRITICIZING A US CONGRESSIONAL HEARING THAT CONVENED THIS WEEK TO DISCUSS WHETHER LAST MONTH'S CHIAPAS UPRISING MIGHT SPREAD ROZENTAL SAID NAFTA DOESN'T GIVE US LAWMAKERS THE RIGHT TO SIT IN JUDGMENT ON MEXICAN ISSUES EMERGENCY QUAKE AID WAS APPROVED BY THE HOUSE WHICH REJECTED ATTEMPTS TO FINANCE THE ASSISTANCE THROUGH NEW CUTS IN OTHER PROGRAMS THE 77 BILLION IN LOS ANGELES EARTHQUAKE AID AND ANOTHER 1 BILLION IN LOANS WON APPROVAL IN A 33774 VOTE AS PART OF A BROADER MEASURE AUTHORIZING SUPPLEMENTAL SPENDING THE SENATE AGREED TO DENY FEDERAL FUNDS TO ANY STATE OR LOCAL AGENCIES THAT BAR CONSTITUTIONALLY PROTECTED PRAYER IN PUBLIC SCHOOLS THE 7522 VOTE CAME AFTER SEN HELMS MODIFIED THE LANGUAGE IN HIS PROPOSAL TO ENSURE THAT IT WOULD APPLY ONLY TO STUDENTINITIATED VOLUNTARY PRAYER WHICH IS PERMITTED UNDER THE CONSTITUTION INFLUENCE IN GEORGIA IN EXCHANGE FOR ECONOMIC AID 9402040073 940204 INTERNATIONAL TELMEX'S PROFIT ROSE 45 IN 1993 FALLING SHORT OF EXPECTATIONS MEXICO CITY IN A SIGN OF CONTINUED WEAKNESS IN THE MEXICAN ECONOMY TELEFONOS DE MEXICO SA THE GIANT TELEPHONE CONCERN REPORTED A MEAGER 45 GAIN IN NET INCOME FOR 1993 TELMEX'S EARNINGS ARE PERHAPS THE MOST WIDELY WATCHED AMONG MEXICAN COMPANIES TELMEX WHOSE AMERICAN DEPOSITARY SHARES TRADE ON THE NEW YORK STOCK EXCHANGE IS A BELLWETHER FOR MEXICO'S ECONOMY AND STOCK MARKET TRADERS BID UP THE STOCK AND THE MEXICAN MARKET AS A WHOLE BEFORE THE EARNINGS REPORT AS RUMORS OF A 6ASHARE EARNINGS FIGURE CIRCULATED THE MEXICAN MARKET CLOSED AT A RECORD HIGH THURSDAY WHILE IN NEW YORK TELMEX ADSS ROSE 125 TO 7525 APIECE BUT AFTER THE EARNINGS ANNOUNCEMENT ANALYSTS EXPECTED SELLING IN TELMEX ADSS THIS MORNING IN NEW YORK A LOT OF PEOPLE OVER THE PAST COUPLE OF DAYS THOUGHT THE EARNINGS WERE GOING TO BE A LOT HIGHER SAID ERIC ANDERSON ANALYST WITH AFIN SECURITIES INTERNATIONAL NEW YORK HE SAID THE EARNINGS REFLECT A WEAK MEXICAN ECONOMY TELMEX POSTED 128 GROWTH FOR THE YEAR IN THE NUMBER OF TELEPHONE LINES IN LINE WITH EXPECTATIONS 9402040072 940204 BUSINESS BRIEF RYLAND GROUP INC HOMEBUILDING STRENGTH LED TO RISE IN 4THQUARTER NET RYLAND GROUP INC REPORTED A 10 INCREASE IN FOURTHQUARTER EARNINGS LARGELY DUE TO IMPROVEMENTS IN ITS HOMEBUILDING OPERATIONS THE COLUMBIA MD HOMEBUILDER AND MORTGAGESERVICES COMPANY POSTED FOURTHQUARTER NET INCOME OF 76 MILLION OR 45 CENTS A SHARE UP FROM 69 MILLION OR 40 CENTS A SHARE A YEAR EARLIER REVENUE TOTALED 4302 MILLION A RISE OF NEARLY 9 FROM THE SAME PERIOD A YEAR EARLIER RYLAND'S 1994 FOCUS IS ON OPTIMIZING THE STRENGTH OF OUR MORTGAGE OPERATIONS AND MAXIMIZING SHAREHOLDER VALUE SAID R CHAD DREIER THE COMPANY'S RECENTLY NAMED PRESIDENT AND CHIEF EXECUTIVE FOR THE YEAR RYLAND HAD A NET LOSS OF 27 MILLION OR 34 CENTS A SHARE COMPARED WITH NET INCOME OF 275 MILLION OR 166 A SHARE IN 1992 REVENUE ROSE ABOUT 2 TO 147 BILLION 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 9402040071 940204 TRIALS OF A NEW RUSSIAN DISSIDENT BY J MICHAEL WALLER TWELVE MONTHS AFTER MOSCOW SIGNED THE CHEMICAL WEAPONS CONVENTION IN PARIS THE RUSSIAN GOVERNMENT HAS JAILED A SCIENTIST WHO REVEALED THE EXISTENCE OF A CLANDESTINE PROGRAM TO DEPLOY THE MOST LETHAL CHEMICAL WEAPON EVER DEVELOPED HIS TRIAL WILL BE THE FIRST TEST OF RUSSIA'S JUDICIAL SYSTEM UNDER ITS NEW CONSTITUTION BUT IT IS ALSO A TEST OF WHETHER MOSCOW INTENDS TO HONOR ITS COMMITMENTS TO SHARE INFORMATION ON CHEMICAL WEAPONS PROGRAMS AND THE ELIMINATION OF MOST OF ITS POISON GAS ARSENAL THE DEFENDANT VIL MIRZAYANOV IS ONE OF A NEW GROUP OF DISSIDENT SCIENTISTS EMERGING FROM RUSSIA'S SPRAWLING MILITARYINDUSTRIAL COMPLEX IN SEPTEMBER 1992 HE AND COLLEAGUE LEV FEDOROV IN AN ARTICLE IN MOSCOW NEWS TOLD OF A BINARY CHEMICAL WEAPON CALLED NOVICHOK A POISON FIVE TO 10 TIMES AS LETHAL AS THE VX GAS CURRENTLY IN WORLD ARSENALS MR MIRZAYANOV SAYS HE HELPED DEVELOP THE TOXIN UNTIL HIS CONSCIENCE MADE HIM STOP BUT IN GOING PUBLIC HE TOUCHED A SENSITIVE NERVE DESPITE MOSCOW'S COMMITMENTS TO ELIMINATE THE BULK OF ITS ARSENALS AND OPEN ITS FACILITIES TO INSPECTION ITS BIOLOGICAL AND CHEMICAL WEAPONS PROGRAMS REMAIN SHROUDED IN SECRECY MR MIRZAYANOV'S PROSECUTION BEGAN BEFORE THE NEW CONSTITUTION'S OFFICIAL ADOPTION IN DECEMBER BUT THE TRIAL IS TAKING PLACE NOW WITH LITTLE REGARD FOR THE RIGHTS THAT DOCUMENT PROMISED THE ORIGINAL TRIAL DATE OF JAN 6 WAS CHANGED APPARENTLY TO AVOID DISRUPTING THE CLINTONYELTSIN SUMMIT WHEN THE TRIAL OPENED JAN 24 THE COURT DENIED ALL DEFENSE MOTIONS INCLUDING REQUESTS TO HAVE INDEPENDENT EXPERTS TESTIFY ON THE SCIENTIST'S BEHALF AND TO PERMIT INTERNATIONAL OBSERVERS TO ATTEND MR MIRZAYANOV MAINTAINS THAT THE TRIAL VIOLATES STATUTE 20 OF THE CRIMINAL CODE WHICH GIVES THE ACCUSED THE RIGHT TO BE SUBJECT TO A THOROUGH FULL AND OBJECTIVE INVESTIGATION THE PROSECUTION'S INVESTIGATION WAS NOTHING OF THE SORT IT WAS CARRIED OUT BY THE MINISTRY OF SECURITYTHE RENAMED INTERNAL SECURITY SECTION OF THE FORMER KGB WHICH WITNESSES SAY HAS DISTORTED THEIR STATEMENTS ONE SUCH WITNESS IS BALTIMORE SUN REPORTER WILL ENGLUND WHO COVERED MR MIRZAYANOV'S PLIGHT FROM THE BEGINNING AND WAS HELD AND INTERROGATED BY THE KGB IN APRIL WITHOUT BEING GIVEN THE RIGHT TO HAVE A LAWYER OR US EMBASSY OFFICIAL PRESENT MR MIRZAYANOV ALSO ARGUES THAT HIS PROSECUTION VIOLATES RUSSIA'S NEW CONSTITUTION WHICH STATES THAT ANY LAW ACT OR DECREE ENTERS INTO FORCE ONLY AFTER IT HAS BEEN PUBLISHED THE SCIENTIST IS BEING TRIED UNDER FIVE GOVERNMENT ACTS ALL UNPUBLISHED ONE WAS A MARCH 30 1993 EDICT BY PRIME MINISTER VIKTOR CHERNOMYRDIN THAT MADE MR MIRZAYANOV'S STATEMENTS A CRIME SIX MONTHS AFTER THE FACT IN A LETTER TO THE THREEJUDGE PANEL TRYING HIS CASE MR MIRZAYANOV WROTE THE ONLY POSSIBLE OPTION FOR ME IS NOT TO PARTICIPATE IN THIS CRIMINAL EVENT THEREFORE I AM INFORMING YOU THAT FROM THIS POINT ON I WILL NOT APPEAR IN THE COURT PROCEEDINGS HE BOYCOTTED THE SECOND DAY OF THE TRIAL AND WAS ARRESTED AND IMPRISONED UNTIL A NEW TRIAL SET TO BEGIN THIS WEEK IF MR MIRZAYANOV IS CONVICTED THE GOVERNMENT IS LIKELY TO PROSECUTE OTHER DISSIDENT SCIENTISTS AS WELL ONE IS VLADIMIR UGLEV ONE OF RUSSIA'S TOP DESIGNERS OF BINARY WEAPONS AND AN INVENTOR OF KEY COMPOUNDS IN NOVICHOK AT A CLANDESTINE LABORATORY IN SHIKHANY AFTER RUSSIA SIGNED THE CHEMICAL WEAPONS CONVENTION HE WROTE AN ARTICLE DESCRIBING 15 YEARS OF DEVELOPMENT OF HUNDREDS OF DEADLY CHEMICAL AGENTS AND CONFIRMED MR MIRZAYANOV'S STORY HE WAS FIRED AND INVESTIGATED BY THE FORMER KGB MOSCOW'S BEHAVIOR IN TRYING TO QUASH EXPOSURE OF NOVICHOK HAS MANY PARALLELS TO SOVIET ATTEMPTS TO COVER UP THE 1979 ANTHRAX DISASTER IN SVERDLOVSK WHERE AN ACCIDENT AT A SECRET BIOLOGICAL WEAPONS LAB KILLED 64 PEOPLE JUST AS SVERDLOVSK WAS A CLOSED CITY THROUGH THE SOVIET PERIOD THE MAIN SITE OF RUSSIAN CHEMICAL WEAPONS PRODUCTION SHIKHANY REMAINS CLOSED TO FOREIGNERS TO THIS DAY THE DISREGARD FOR PUBLIC SAFETY IS ALSO SIMILAR ACCORDING TO A STATEMENT FROM ANDREI ZHELEZNYAKOV A SCIENTIST WHO ALSO WORKED ON NOVICHOK A MOSCOW LAB KNOWINGLY RELEASED TOXINS INTO THE AIR THROUGH A FILTER OFFICIALS KNEW WAS FAULTY MR UGLEV ALLEGES THAT THERE HAVE BEEN MYSTERIOUS OUTBREAKS OF DISEASE IN THE VOLSK REGION AROUND SHIKHANY AND THAT SECRECY IS AN OBSTACLE TO FINDING OUT THE CAUSES VICTIMS AND DOCTORS WERE SILENCED IN BOTH CASES WHEN MR ZHELEZNYAKOV WAS HOSPITALIZED AFTER BEING EXPOSED TO A NOVICHOK STRAIN IN A 1987 LAB ACCIDENT THE KGB INSTRUCTED DOCTORS TO SIGN A SECRECY PLEDGE A DYING MR ZHELEZNYAKOV WAS GIVEN A DISABILITY PENSION IN EXCHANGE FOR HIS SILENCE AS IN THE SVERDLOVSK CASE WHERE AUTHORITIES USED TAINTED MEAT AS AN EXCUSE TO EXPLAIN THE ANTHRAX OUTBREAK THE KGB TOLD DOCTORS THAT MR ZHELEZNYAKOV WAS SUFFERING FROM THE EFFECTS OF SPOILED SAUSAGE AND JUST AS THE THREEJUDGE PANEL HAS REFUSED TO ADMIT INDEPENDENT TESTIMONY IN THE NOVICHOK CASE SO IT WAS IN THE EARLY SVERDLOVSK PROBE IN EACH CASE SCIENTISTS WERE FORCED TO REMAIN SILENT OR WERE HARASSED FOR HAVING SPOKEN OUT NO ONE WITH KNOWLEDGE OF THE ANTHRAX INCIDENT DARED TALK TO JOURNALISTS FOR MORE THAN A DECADE MESSRS MIRZAYANOV AND UGLEV WERE FIRED FROM THEIR JOBS WHILE THEIR SILENT COLLEAGUES REMAIN ON THE PAYROLL JOURNALISTS AND THEIR SOURCES WERE HARASSED IN BOTH INSTANCES THE SOURCES OF THE FIRST RUSSIAN REPORTER TO PROBE THE SVERDLOVSK INCIDENT 11 YEARS AFTER THE FACT WERE SUBJECTED TO OFFICIAL HARASSMENT MOSCOW NEWS IZVESTIA AND NOVOYE VREMYA WHICH COVERED THE NOVICHOK STORY ALSO RECEIVED VISITS FROM THE FORMER KGB WHY ARE THE RUSSIANS SO UPSET WITH MR MIRZAYANOV HE IS ALLEGED TO HAVE REVEALED RESULTS OF AN ENTIRE PROGRAM OF SECRET WEAPONRY AND ACKNOWLEDGEMENT OF A SECRET WEAPON NOT ONLY WOULD FORCE RUSSIA TO PLACE NOVICHOK UNDER THE CHEMICAL WEAPONS CONVENTION AND THUS SCUTTLE THE PROGRAM BUT WOULD ALSO JEOPARDIZE HUNDREDS OF MILLIONS OF DOLLARS IN AMERICAN AND OTHER WESTERN AID THE DISSIDENT SCIENTISTS ARE UNANIMOUS THAT THE CHEMICAL GENERALS CANNOT BE TRUSTED TO DISMANTLE THE NERVE GAS DEVELOPMENT AND PRODUCTION FACILITIES OR EVEN TO DESTROY EXISTING STOCKS THE SCIENTISTS HAVE A WELLFOUNDED FEAR OF THE GENERALS' HISTORICAL DISREGARD FOR PUBLIC SAFETY MR UGLEV IS ALSO CONCERNED THAT CORRUPT OFFICERS WILL SELL THE NOVICHOK FORMULA TO TERRORIST STATES AND ORGANIZATIONS ONCE THE FORMULA AND PROCESS ARE KNOWN HE SAYS NOVICHOK IS EASY TO PRODUCE WITH COMMERCIALLY AVAILABLE CHEMICALS MR MIRZAYANOV HAS ALLEGED THAT WESTERN MONEY EARMARKED FOR CHEMICAL WEAPONS DESTRUCTION WILL BE COUNTERPRODUCTIVE HE SAID IN AN INTERVIEW PUBLISHED IN MOSCOW NEWS OUR GENERALS RAISED AN OUTCRY ALLEGING THAT RUSSIA WOULD NOT MANAGE TO DESTROY ITS CHEMICAL WEAPONS UNAIDED AND THAT WE NEED AT LEAST 600 MILLION THEY WANT TO GET THAT SUM THROUGH YELTSIN FROM THE USA THE POINT HE ADDS IS TO FINANCE THE DESTRUCTION OF OBSOLESCENT STOCKS AND TO CARRY ON THE DEVELOPMENT OF BINARY WEAPONS MR ZHELEZNYAKOV AGREED BEFORE HE DIED LAST SUMMER HE TOLD NOVOYE VREMYA THE GENERALS CANNOT BE TRUSTED WITH THE DESTRUCTION OF CHEMICAL WEAPONS THE MONEY RECEIVED FROM THE AMERICANS FOR THIS PURPOSE WILL DEFINITELY BE CHANNELED INTO THE DEVELOPMENT OF NEW AND MORE POWERFUL TOXIC SUBSTANCES MR WALLER IS DIRECTOR OF INTERNATIONAL SECURITY AFFAIRS AT THE INTERNATIONAL FREEDOM FOUNDATION IN WASHINGTON 9402040070 940204 LEISURE & ARTS ON SPORTS PUT THIS SOX IN COOPERSTOWN BY FREDERICK C KLEIN IF THE NELLIE FOX SOCIETY HAD EXISTED 25 YEARS AGO GETTING LITTLE NELL ELECTED TO THE BASEBALL HALL OF FAME WOULD HAVE BEEN NO PROBLEM IF HE HAD NEEDED 14 VOTES ON THE 18MEMBER VETERANS COMMITTEE AS HE WILL WHEN THE GROUP MEETS ON FEB 25 IN TAMPA FLA HE'D HAVE HAD 20 OR 30 VOTES FOR SURE DA BOYS WOULDA SEEN TO IT BUT THINGS CHANGE AND NOT ALWAYS FOR THE BETTER SO THE PROSPECT OF ANOTHER YEAR IN IMMORTALITY LIMBO FOR THE LATE GREAT CHICAGO WHITE SOX SECOND BASEMAN IS REAL PHIL RIZZUTO THE OLD NEW YORK YANKEES SHORTSTOP WHO'S NOW A BROADCASTER IS CONSIDERED A SERIOUS THREAT TO COP THE SINGLE PLAYER SPOT THE VETERANS COMMITTEE CAN FILL ANNUALLY JOE GORDON THE FORMER YANK SECOND BASEMAN ROGER MARIS WHO HIT 61 HOME RUNS FOR THE 1961 YANKEES AND GIL HODGES THE METS EXMANAGER ALSO ARE SAID TO BE IN THE RUNNING NEW YORKERS DO NOT LACK FOR CLOUT IN THESE MATTERS AND THAT'S TOO BAD SAYS LOUIS HEGEMAN THE CHICAGO LAWYER WHO'S A COFOUNDER OF THE FIVEYEAROLD FOX SOCIETY OUR CAUSE IS JUST HEGEMAN DECLARES WE'D HATE TO SEE NELLIE DENIED AGAIN BECAUSE OF POLITICS GIVEN THE MAKEUP OF HEGEMAN'S GROUP THAT'S A STRANGE KIND OF COMPLAINT FOX SOCIETY ROLLS INCLUDE CHICAGO MAYOR RICHARD M DALEY FORMER ILLINOIS GOV JAMES THOMPSON COOK COUNTY SHERIFF MICHAEL SHEAHAN AND STATE'S ATTORNEY JACK O'MALLEY ALSO ENOUGH JUDGES AND LAWYERS TO KEEP THE WORLD IN KNOTS FOR CENTURIES THEY AND SEVERAL HUNDRED OTHERS MEET A COUPLE OF TIMES A YEAR SITTING AROUND WEARING 1950SSTYLE WHITE SOX CAPS REMINISCING ABOUT THEIR CITY'S GREAT SOUTH SIDE AND PLOTTING WAYS TO ELEVATE THEIR HERO WE DO SOME LOBBYING WITH VETERANS COMMITTEE MEMBERS BUT IT'S NOTHING LIKE THE OLD MACHINE' DAYS HEGEMAN SAYS APOLOGETICALLY AMONG OTHER THINGS WE'RE BIPARTISAN WHICH CAN BE A HINDRANCE HEY WE EVEN HAVE A FEW CUBS FANS THE MOTIVATING FORCE BEHIND THE GROUP IS JACOB NELSON FOX WHO WAS BORN IN ST THOMAS PA ON CHRISTMAS DAY 1927 AND DIED IN BALTIMORE OF CANCER ON DEC 1 1975 HE PLAYED BIGLEAGUE BASEBALL FOR 19 SEASONS 14 OF THEM FROM 1950 THROUGH 1963 WITH THE WHITE SOX HE WAS NICKNAMED LITTLE NELL AND THE MIGHTY MITE EVEN THOUGH AT 5FOOT10 AND 160 POUNDS HE WASN'T TINY ADD THE ENORMOUS CHAW OF TOBACCO HE ALWAYS CARRIED IN HIS CHEEK AFIELD AND HE WEIGHED A FEW POUNDS MORE NELLIE WAS VERY STRONG HEGEMAN VOLUNTEERS GUYS WHO PLAYED WITH HIM SAY HE USED TO TURN OFF THE LOCKERROOM SHOWERS AS A PRANK HE'D HAVE THE VALVE SCREWED SO TIGHT THAT THE ONLY ONE WHO COULD TURN IT BACK ON WAS BIG TED KLUSZEWSKI FOX WAS A 13TIME PARTICIPANT IN THE ALLSTAR GAME AND THE AMERICAN LEAGUE MOST VALUABLE PLAYER IN 1959 THE LAST YEAR THE WHITE SOX WON THE PENNANT HE HAD 2663 REGULARSEASON HITS AND A LIFETIME BATTING AVERAGE OF 288 HE STRUCK OUT ONLY 218 TIMES IN 9223 OFFICIAL TIMES AT BAT THAT RATIO OF 42 TO 1 IS THE THIRD BEST IN BASEBALL HISTORY TRAILING ONLY THAT OF JOE SEWELL AND LLOYD WANER FOX'S LIFETIME FIELDING PERCENTAGE WAS AN OUTSTANDING 984 HE HOLDS THE RECORD FOR MOST DOUBLE PLAYS BY AN AMERICAN LEAGUE SECOND BASEMAN NINE TIMES HE LED THE LEAGUE IN CHANCES ACCEPTED SHOWING HE DIDN'T ACHIEVE HIS FIELDING MARK BY STANDING STILL HE WAS A NOTABLE IRONMAN TOO MISSING JUST 15 GAMES OVER THE 10 SEASONS FROM 1952 THROUGH 1961 AND APPEARING IN 798 CONSECUTIVE GAMES IN ONE STRETCH THAT NELL WAS ADMIRED BY HIS CONTEMPORARIES WAS SEEN MOST STRONGLY IN THE NUMBER OF VOTES HE RECEIVED FROM SPORTSWRITERS WHEN THOSE WORTHIES CONSIDERED HIM FOR HALL OF FAME MEMBERSHIP IN 1985 THE LAST YEAR HE COULD HAVE BEEN ELECTED VIA THAT ROUTE HE RECEIVED 295 VOTES OR 74678 OF THOSE CAST JUST TWO SHY OF THE REQUIRED 75 NO ONE ELSE HAS COME THAT CLOSE AND NOT MADE IT MANY STILL MAINTAIN THAT FOX'S VOTE PERCENTAGE THAT YEAR SHOULD HAVE BEEN ROUNDED UP SO HE COULD HAVE BEEN ADMITTED NO MATTER HOW TALENTED OR WELLINTENTIONED THE BASEBALL WRITERS MIGHT BE THEY SHOULD NEVER BE ENTRUSTED WITH THE FINER POINTS OF ACCOUNTING THE FOX SOCIETY CONTENDS FOX'S BOOSTERS ARE EAGER TO COMPARE THEIR MAN'S CREDENTIALS WITH THOSE OF RIZZUTO WHOM THEY THINK FOX MUST BEAT TO GAIN ENTRY THIS YEAR FOX THEY NOTE PLAYED MORE YEARS THAN RIZZUTO 19 TO 13 WAS A MORE FREQUENT ALLSTAR 13 TIMES TO FIVE HAD OVER 1000 MORE HITS AND HIGHER LIFETIME BATTING AND FIELDING AVERAGES THE MOST VOTES THE EXYANK EVER GOT FROM THE SPORTSWRITERS WAS 149 OR 51 IN 1976 SURE RIZZUTO PLAYED IN NINE WORLD SERIES TO FOX'S ONE BUT IT WASN'T NELLIE'S FAULT THAT PHIL HAD BETTER TEAMMATES THEY SAY THE MATTER OF MATES RUBS FOX'S BACKERS PARTICULARLY BECAUSE SOME BELIEVE THAT ONE HIS OLD WHITE SOX MANAGER AL LOPEZ HAS KEPT NELLIE FROM THE COOPERSTOWN NY SHRINE THROUGH FAINT PRAISE LOPEZ'S VIEW IS IMPORTANT BECAUSE HE'S A VETERANS COMMITTEE MEMBER ALONG WITH FORMER OFFICIALS AND WRITERS AND EXPLAYERS TED WILLIAMS STAN MUSIAL MONTE IRVIN BILL WHITE YOGI BERRA AND PEE WEE REESE ALTHOUGH HE WON'T SAY HOW HE HAS VOTED OR WILL VOTE ON THE FOX CANDIDACY IT'S A SECRET BALLOT YOU KNOW LOPEZ NOW 85 YEARS OLD AND LIVING NEAR TAMPA PROFESSES TO BE PERPLEXED BY THE CHARGE NELLIE WAS A REAL GOOD PLAYER FOR ME YOU CAN'T BLAME THE CHICAGO PEOPLE FOR WANTING HIM IN HE SAYS OF COURSE I HAD OTHER GOOD PLAYERS IN CHICAGO LIKE LUIS APARICIO EARLY WYNN AND SHERM LOLLAR AND DON'T FORGET JIMMY LANDIS HE WAS GOOD TOO SO MAYBE NELLIE WON'T MAKE IT THIS YEAR EVEN THOUGH BY ALL RIGHTS HE SHOULD THAT WOULD NOT END THE BATTLE WE ARE IN THIS FOR THE LONG HAUL VOWS HEGEMAN IF YOU AREN'T PATIENT YOU AREN'T A WHITE SOX FAN AND IF FOX IS ELECTED THE SOCIETY WON'T LACK FOR FUTURE CAUSES LET ME TELL YOU ABOUT BILLY PIERCE HE SAYS NOW THERE WAS A REALLY GREAT PITCHER WHO EVERYBODY UNDERRATES 9402040069 940204 BUSINESS BRIEF ANNTAYLOR STORES CORP SALES FOR OWNED STORES ROSE 93 FOR FOURWEEK PERIOD ANNTAYLOR STORES CORP NEW YORK SAID SALES FOR OWNED STORES ROSE 93 IN THE FOUR WEEKS ENDED JAN 29 TO 305 MILLION FROM 279 MILLION WHILE OWNED SAMESTORE SALES FELL 14 TOTAL SALES FOR THE PERIOD ROSE 6 TO 305 MILLION FROM 287 MILLION INCLUDING LEASEDSHOEDEPARTMENT SALES OF 864000 IN THE YEARAGO PERIOD THE LEASED SHOE DEPARTMENT WAS PHASED OUT EFFECTIVE FEB 1 1993 TOTAL SAMESTORE SALES WERE DOWN 4 IN THE PERIOD FOR THE FISCAL YEAR ENDED JAN 29 SALES FOR OWNED STORES ROSE 9 TO 5016 MILLION FROM 4602 MILLION TOTAL SALES IN THE LATEST FISCAL YEAR ROSE 71 FROM 4684 MILLION THE PREVIOUS YEAR WHICH INCLUDED LEASEDSHOEDEPARTMENT SALES OF 82 MILLION TOTAL SALES AND OWNEDSTORE SALES WERE THE SAME IN THE LATEST YEAR ANNTAYLOR IS A WOMEN'S SPECIALTY RETAILER THAT OPERATES 231 STORES IN 38 STATES 9402040068 940204 MARKETING BRIEF VALUEVISION INTERNATIONAL INC TENDER OFFER OF 134 MILLION PLANNED FOR NATIONAL MEDIA VALUEVISION INTERNATIONAL INC MINNEAPOLIS SAID IT PLANS TO LAUNCH A 134 MILLION TWOSTEP TENDER OFFER FOR NATIONAL MEDIA CORP WHICH SPURNED A SLIGHTLY LOWER BID LAST WEEK VALUEVISION THE NATION'S THIRDLARGEST HOMESHOPPING NETWORK SAID IT PLANS BY WEDNESDAY TO OFFER 1050 A SHARE IN CASH FOR 583 MILLION SHARES OF NATIONAL MEDIA A PHILADELPHIABASED TELEVISION MARKETER VALUEVISION SAID THAT BLOCK PLUS THE 12 MILLION SHARES IT ALREADY OWNS WOULD REPRESENT 502 OF NATIONAL MEDIA VALUEVISION SAID IT PLANS TO THEN OFFER 1050 IN VALUEVISION STOCK FOR EACH OF THE REMAINING NATIONAL MEDIA SHARES NATIONAL MEDIA HAD REJECTED A 10ASHARE OFFER BY VALUEVISION AS INADEQUATE NATIONAL MEDIA EXECUTIVES COULDN'T BE REACHED FOR COMMENT VALUEVISION SAID ITS OFFERING IS SUBJECT TO AMONG OTHER THINGS FINANCING AND NATIONAL MEDIA NEUTRALIZING A PREFERREDSTOCK PURCHASERIGHTS PLAN 9402040067 940204 REVIEW & OUTLOOK EDITORIAL HEALTHY BUSINESSES THE BUSINESS ROUNDTABLE'S OVERWHELMING VOTE AGAINST SUPPORTING THE CLINTON HEALTH CARE PROPOSAL DESERVES SOME ATTENTION FOR WHAT IT SAYS ABOUT THIS ISSUE AND MORE GENERALLY ABOUT BUSINESS'S DEALINGS WITH WASHINGTON UP TO NOW THERE'S OFTEN BEEN A DEMARCATION LINE BETWEEN BIG AND SMALL BUSINESS ON ISSUES LIKE THIS ONE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE SMALLBUSINESS LOBBY HAS COME TO BE VIEWED AS THE MAIN OPPONENT OF GOVERNMENT EXPANSIONS WHILE THE BUSINESS ROUNDTABLE HISTORICALLY HAS BEEN SUSPECTED OF AN INSTINCT TO CUT A DEAL ABSORB THE COSTS AND LET THEIR SMALLER COMPETITION FIGURE OUT HOW TO SURVIVE THE ADDED BURDENS THE CLINTON ADMINISTRATION SEEMS TO HAVE BEEN SURPRISED TO DISCOVER THAT THE ROUNDTABLE'S NORMALLY ROUND HEELS ARE SUDDENLY DUG IN WE KNOW THE CLINTONITES DISLIKE THE 1980S BUT MAYBE THEY SHOULD HAVE BEEN PAYING CLOSER ATTENTION TO WHAT WAS GOING ON THEN IN CORPORATE AMERICA BETTER YET RATHER THAN GIVING OFF THE IMPRESSION THAT THEY'RE TOO SMART TO TALK TO BUSINESSMEN WE'RE THINKING OF THE EYESONLY WHITE HOUSE HEALTH CARE TASK FORCE THEY MIGHT HAVE SPENT SOME TIME WITH THE CEOS NOW RUNNING THESE COMPANIES THE KEY THOUGH WOULD HAVE BEEN TO TALK TO THEM ABOUT BUSINESS NOT THE BLUE SKY OF PUBLIC POLICY THEY'D HAVE LEARNED THAT THE OLDSTYLE CORPORATE EMPIREBUILDERS ARE LARGELY GONE DURING THE 1980S CORPORATE AMERICA WAS FORCED TO RESTRUCTURE DOWNSIZE AND ADOPT SOME NEW WAYS OF DOING BUSINESS THE NEW BREED OF CEOS WHO'VE GONE THROUGH THOSE WRENCHING CHANGES ARE OBSESSED WITH CONTROLLING COSTS PRESIDENT CLINTON AND HILLARY CLINTON BOTH MADE PERSONAL APPEALS TO THE ROUNDTABLE SO DID SUPERWONK IRA MAGAZINER THEY APPARENTLY DIDN'T SHIFT A SINGLE VOTE ONE BIG REASON WE SUSPECT IS THAT THE PITCH HAD NO CREDIBILITY ON THE COST SIDE ONE OF THE MOST IMPORTANT LESSONS BUSINESS LEADERS HAVE BEEN FORCED TO LEARN THE PAST 20 YEARS IS MANDATES CONCEAL COSTS AND SO TEND TO PROLIFERATE LIKE MUSHROOMS STATE AND LOCAL GOVERNMENTS HAVE LONG BEEN BURDENED BY FEDERAL MANDATES THAT DRIVE UP BUDGETS AND RESTRICT FLEXIBILITY THEY ALSO KNOW THAT THE FEDS LARGELY TURN A DEAF EAR TO COMPLAINTS ABOUT ENFORCEMENT ABSURDITIES AND THEY RARELY SUFFER POLITICALLY FOR THE DAMAGE MANDATES CAUSE MEMBERS OF THE ROUNDTABLE AND THE US CHAMBER OF COMMERCE WHICH ALSO DECLARED ITS OPPOSITION TO THE CLINTON PLAN YESTERDAY SAY THEY ARE CONVINCED THE EMPLOYER HEALTHINSURANCE MANDATE IN THE CLINTON PLAN WOULD WORK THE SAME WAY BUSINESS WOULD BECOME IN EFFECT THE TAX COLLECTOR FOR THE HEALTH CARE STATE WHEN THE SYSTEM'S FINANCING PROVED INADEQUATE PRICE CONTROLS WOULD BE TIGHTENED AND THE PLAN'S INSURANCE ALLIANCES WOULD START RATIONING SOME TYPES OF CARE THERE'S ANOTHER SIGNIFICANT SHIFT EVIDENT IN THE ROUNDTABLE OUTCOME ON MOST SUCH ISSUES IT'S OFTEN THE CORPORATIONS' WASHINGTON REPS WHO SHAPE THEIR PUBLIC POSTURE THESE FOLKS ARE BELTWAY LIFERS MANY ARE EXCONGRESSIONAL STAFFERS AND HISTORICALLY FEW EXECUTIVES WERE WILLING TO IGNORE THE ROAD MAPS THE REPS DREW TO STEER FIRMS AROUND LEGISLATIVE ROAD HAZARDS AND OTHER ARCANA BUT WE'RE TALKING HERE ABOUT REPAVING ONESEVENTH OF THE ECONOMY IRA MAGAZINER TOLD THE ROUNDTABLE'S WASHINGTON REPS THAT THE CENTER OF THE HEALTH CARE DEBATE LIES BETWEEN BETWEEN THE COOPER BILL AND CANADA NAMELY CLINTON THAT'S THE KIND OF COMPROMISE REPS HAVE SOLD TO CEOS IN THE PAST BUT IT APPEARS THIS ISSUE'S IMPLICATIONS ARE TOO VAST TO ABSORB THE COSTS OF ANOTHER BELTWAY DEAL WE HOPE THAT NOW THE ROUNDTABLE'S MEMBERS WILL PUT THE HEALTH CARE PLAN DRAFTED BY DEMOCRATIC REP JIM COOPER UNDER THE SAME GLASS THEY USED TO FLYSPECK THE CLINTON PLAN SOME MEMBERS PRIVATELY AGREE THAT COOPER CONTAINS PROVISIONS THAT COULD EXPAND BUREAUCRACY AND MANDATES THOUGH IT AVOIDS THE ONESIZEFITSALL CLINTON APPROACH IT LOOKS THOUGH AS IF FOLKS ON BOTH SIDES OF THE ISSUE LEARNED A FEW THINGS THIS WEEK IT'D BE NICE TO THINK THAT A LOT OF BELTWAY FOLKS LEARNED WHAT THE BUSINESS COMMUNITY DISCOVERED IN THE '80S YOU GET PUNISHED FOR TRYING TO HIDE OR IGNORE YOUR REAL COSTS 9402040066 940204 BUSINESS BRIEF BLUE DOLPHIN ENERGY CO PRETAX GAIN OF 890000 TO BE POSTED IN FIRST PERIOD BLUE DOLPHIN ENERGY CO SAID IT EXPECTS TO REPORT A PRETAX GAIN OF 890000 IN THE FIRST QUARTER IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 289752 OR ONE CENT A SHARE ON REVENUE OF 979000 THE RESULTS INCLUDED A GAIN OF 288811 THE OIL AND NATURAL GAS COMPANY IN HOUSTON SAID THE 1994 GAIN RESULTS FROM ITS RECENT DEBT RESTRUCTURING WHICH LOWERED ITS INTEREST RATE THE COMPANY SAID IT WAS ABLE TO RETIRE THE DEBT BECAUSE IT ARRANGED A 10 MILLION LOAN SO IT COULD RETIRE AND CONSOLIDATE EXISTING DEBT AND FINANCE FUTURE WORKINGCAPITAL NEEDS INCLUDING ACQUISITION AND DEVELOPMENT OF ASSETS 9402040065 940204 BUSINESS BRIEF GENERAL SIGNAL CORP NET INCOME FOR 4TH QUARTER REVERSES YEAREARLIER LOSS GENERAL SIGNAL CORP REPORTED FOURTHQUARTER NET INCOME OF 49 MILLION DRIVEN BY CONTINUED COSTCUTTING AND A PICKUP IN ORDERS AND SALES A YEAREARLIER THE COMPANY HAD A LOSS OF 375 MILLION FOURTHQUARTER NET INCOME WAS 10 CENTS A SHARE COMPARED WITH LAST YEAR'S LOSS OF 89 CENTS A SHARE THE FOURTH QUARTER INCLUDED A NUMBER OF ONETIME CHARGES THE COMPANY SAID EARNINGS ON A CONTINUING BASIS AFTER EXCLUDING SPECIAL CHARGES CLIMBED 14 TO 57 CENTS A SHARE OVERALL THE QUARTER WAS OUR BEST FROM AN ONGOING BUSINESS BASIS IN OVER TWO YEARS REFLECTING CONTINUED DISCIPLINE IN COST CONTAINMENT AND ASSET MANAGEMENT SAID EDMUND M CARPENTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY IN STAMFORD CONN MAKES EQUIPMENT AND INSTRUMENTS FOR PROCESS CONTROL ELECTRICAL AND OTHER INDUSTRIES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF GENERAL SIGNAL CLOSED AT 3650 UP 25 CENTS 9402040064 940204 CLINTON SEEKS 13 BUDGET RISE TO TRAIN JOBLESS PROPOSAL OF OVER 7 BILLION FOCUSES ON UNEMPLOYED AMONG THE MIDDLE CLASS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SEEKING TO BOOST SPENDING ON FEDERAL JOBTRAINING PROGRAMS BY 13 TO MORE THAN 7 BILLION FOCUSING LARGELY ON MIDDLECLASS UNEMPLOYED WORKERS BUT ALSO ADDING FUNDS FOR THE INNERCITY POOR THE LABOR DEPARTMENT WHICH ADMINISTERS THE PROGRAMS WOULD BE ONE OF THE WINNERS IN THE ADMINISTRATION'S FISCAL 1995 BUDGET TO BE RELEASED MONDAY BUT IT ISN'T CLEAR WHAT WILL HAPPEN TO TRAINING PROGRAMS RUN BY OTHER AGENCIES OR WHAT PROGRAMS WITHIN THE LABOR DEPARTMENT MIGHT BE CUT TO HELP PAY FOR THE ROUGHLY 800 MILLION INCREASE IN FEDERAL TRAINING FUNDS THE CORE OF THE ADMINISTRATION'S NEW TRAINING INITIATIVES IS A DISLOCATEDWORKER PROGRAM AIMED AT HELPING PEOPLE PERMANENTLY LAID OFF BECAUSE OF A CLOSED FACTORY CORPORATE STREAMLINING OR IMPORT COMPETITION THAT PROGRAM IS BUDGETED AT MORE THAN 2 BILLION FOR THE COMING FISCAL YEAR AND IS PROJECTED TO COST 3 BILLION ANNUALLY WHEN FULLY IMPLEMENTED THE DISLOCATEDWORKER FUND WOULD COMBINE SIX EXISTING FUNDING STREAMS CURRENTLY BUDGETED AT ABOUT 15 BILLION BUT THE LABOR DEPARTMENT'S FOCUS ON THE DISLOCATEDWORKER PROGRAM IS RAISING QUESTIONS ABOUT WHETHER THE WHITE HOUSE IS SHIFTING THE FOCUS OF FEDERAL JOB TRAINING TO THE MIDDLE CLASS FROM THE POOR ADMINISTRATION OFFICIALS SENSITIVE TO SUCH CRITICISM SAID THE CONTENTION ISN'T TRUE LABOR SECRETARY ROBERT REICH REFUSED TO TALK ABOUT THE SPECIFICS OF THE BUDGET BUT ARGUED THAT MONEY WOULD BE DOLED OUT FAIRLY THIS ISN'T A ZEROSUM GAME MR REICH SAID IN AN INTERVIEW THE PRESIDENT WANTS TO EXPAND PROGRAMS FOR THE DISADVANTAGED AS WELL AS FOR DISLOCATED WORKERS HE NOTED THAT THOSE LAIDOFF WORKERS ELIGIBLE FOR THE DISLOCATEDWORKER PROGRAM ARE BOTH DISADVANTAGED AND WORKING CLASS OR LOWERMIDDLE CLASS A LOOK AT FIGURES IN THE PRESIDENT'S PLANNED BUDGET SHOWS THAT SPENDING ON PROGRAMS FOR YOUTHS WHO NEED TO BE POOR TO QUALIFY FOR MOST PROGRAMS WOULD GROW 12 NEXT YEAR ACCORDING TO OFFICIALS WHO HAVE SEEN THE BUDGET PROPOSAL IN ALL YOUTH PROGRAMS MOSTLY TARGETED AT THE POOR WILL INCREASE TO 31 BILLION WHILE SPENDING ON PROGRAMS FOR ADULTS WOULD GAIN 14 TO 41 BILLION LARGELY THROUGH THE DISLOCATEDWORKER PROGRAM FOR EXAMPLE JOB CORPS A PROGRAM THAT TAKES POOR TEENAGERS OUT OF THE INNER CITY AND PUTS THEM IN A BOOTCAMPTYPE ENVIRONMENT WOULD GET AN 11 BUDGET INCREASE TO 116 BILLION UNDER THE PRESIDENT'S PROPOSAL THE SUMMER YOUTHEMPLOYMENT PROGRAM WOULD GAIN 168 MILLION OR 19 TO 106 BILLION AND THE JOB TRAINING PARTNERSHIP ACT PROGRAM FOR POOR ADULTS WOULD GAIN 142 MILLION OVER ITS CURRENT BUDGET AUTHORITY OF ALMOST 1 BILLION AT THE SAME TIME HOWEVER THE PROGRAM FOR DISADVANTAGED YOUTH WHICH STUDIES HAVE SHOWN FELL SHORT OF EXPECTATIONS WOULD BE CUT BY ABOUT 9 OR 60 MILLION TO JUST BELOW 600 MILLION ADVOCATES FOR EXPANSIONS OF JOB TRAINING ARE WARILY AWAITING MONDAY'S BUDGET ANNOUNCEMENT CLEARLY THE AMOUNT OF MONEY THEY'RE WILLING TO PUT IN IS ONE OF THE CHIEF DEFINING CHARACTERISTICS OF WHETHER THIS PROGRAM IS GOING TO BE A GOOD ONE SAID LAWRENCE MISHEL RESEARCH DIRECTOR OF THE ECONOMIC POLICY INSTITUTE A WASHINGTON THINK TANK FUNDED IN PART BY UNIONS IF THERE ISN'T ENOUGH MONEY THEN THERE IS A HOLLOW PROMISE WITH ENOUGH MONEY IT COULD BE A REAL ADVANCE IN OUR LABORMARKET POLICIES 9402040063 940204 BUSINESS BRIEF VARD AS AEA INVESTORS WITHDRAWS OFFER FOR KLOSTER DIVISIONS AEA INVESTORS INC A NEW YORK INVESTMENT FIRM WITHDREW ITS 565 MILLION OFFER TO PURCHASE TWO DIVISIONS OF KLOSTER CRUISE LTD CORAL GABLES FLA AEA SAID THE ACQUISITIONS WOULDN'T FIT WITH ITS INVESTMENT GOALS WITHIN THE FINANCIAL FRAMEWORK PROPOSED FOR THE TRANSACTION IN DECEMBER AEA SAID IT SIGNED A PRELIMINARY AGREEMENT TO PURCHASE ROYAL VIKING LINE AND ROYAL CRUISE LINE TWO OF KLOSTER'S UNITS AEA HADN'T YET DONE DUE DILIGENCE ON THE TRANSACTION KLOSTER IS OWNED BY THE OSLOCRUISE AND FERRY CONCERN VARD AS WHILE KLOSTER HAD SAID THE SALES WOULD ALLOW THE COMPANY TO REDUCE DEBT AND MODERNIZE OTHER LINES IT SAID YESTERDAY THAT EARNINGS WILL BE HELPED BY THE RETENTION OF THE DIVISIONS BECAUSE BOOKINGS ARE STRONGER THAN THOSE FROM PRIOR YEARS 9402040062 940204 BUSINESS BRIEF PHOENIX LASER SYSTEMS INC COMPANY TO CONTEST FILING OF INVOLUNTARY BANKRUPTCY PHOENIX LASER SYSTEMS INC SAID IT INTENDS TO CONTEST INVOLUNTARY BANKRUPTCY PROCEEDINGS FILED AGAINST IT BY TWO FORMER EMPLOYEES AND MICRODYNE INC PHOENIX BASED IN FREMONT CALIF SAID IT HADN'T RECEIVED FORMAL NOTIFICATION OF THE JAN 31 FILING BUT CALLED IT A SPURIOUS AND MALICIOUS ATTEMPT TO DISCREDIT THE COMPANY TRADING IN THE COMPANY'S SHARES WAS HALTED BY THE AMERICAN STOCK EXCHANGE YESTERDAY AFTER PHOENIX DISCLOSED THE FILING THE COMPANY WHICH DEVELOPS INTEGRATED LASER SYSTEMS FOR MEDICAL AND INDUSTRIAL USE SAID IT LEARNED THE FORMER EMPLOYEES' CLAIM WAS BASED ON GOLDEN PARACHUTES FOR SENIOR EMPLOYEES WHICH THE COMPANY SAID HAD BEEN RESCINDED BY ITS BOARD PHOENIX SAID IT HAD NO OWNERSHIP INTEREST IN MICRODYNE A COMMUNICATIONS AND LOCALAREA NETWORK CONCERN BASED IN ESCONDIDO CALIF MICRODYNE OFFICIALS COULDN'T BE REACHED FOR COMMENT 9402040061 940204 BUSINESS BRIEF GLIMCHER REALTY TRUST UNDERWRITERS EXERCISE RIGHT TO BUY 2373750 SHARES GLIMCHER REALTY TRUST SAID AN UNDERWRITING GROUP LED BY PAINEWEBBER INC EXERCISED AN OPTION TO PURCHASE 2373750 COMMON SHARES FROM THE COMPANY AT 2025 A SHARE THE OPTION WAS GRANTED TO COVER OVERALLOTMENTS INCURRED IN CONNECTION WITH GLIMCHER REALTY'S RECENTLY COMPLETED INITIAL PUBLIC OFFERING GLIMCHER REALTY WILL RECEIVE ABOUT 45 MILLION AFTER COMMISSIONS AND UNDERWRITING DISCOUNTS THE PROCEEDS WILL BE APPLIED TO REDUCE DEBT UNDER THE COLUMBUS OHIO COMPANY'S 100 MILLION CREDIT FACILITY TO ABOUT 33 MILLION FROM 78 MILLION THE NET PROCEEDS RECEIVED BY THE COMPANY FROM ITS IPO INCLUDING THE EXERCISE OF THE OVERALLOTMENT OPTION WERE 3422 MILLION WHICH HAS BEEN APPLIED PARTIALLY TO THE ACQUISITIONS OF SHOPPING CENTERS AND TO THE REDUCTION OF DEBT GLIMCHER IS A REAL ESTATE INVESTMENT TRUST RECENTLY FORMED TO CONTINUE THE BUSINESS AND OPERATIONS OF GLIMCHER CO 9402040060 940204 BUSINESS BRIEF NALCO CHEMICAL CO ENERGYCHEMICALS VENTURE IS SET WITH EXXON CORP NALCO CHEMICAL CO AND EXXON CORP'S CHEMICAL UNIT SAID THEY TENTATIVELY AGREED TO FORM AN ENERGYCHEMICALS JOINT VENTURE THE VENTURE WILL INCLUDE NALCO'S US PETROLEUMCHEMICALS DIVISION SOME SEGMENTS OF NALCO'S INTERNATIONAL PETROLEUMCHEMICALS BUSINESS AND EXXON CHEMICAL CO'S ENERGYCHEMICALS BUSINESS NALCO IS BASED IN NAPERVILLE ILL EXXON IS BASED IN NEW YORK THE VENTURE TO BE NAMED NALCO/EXXON ENERGY CHEMICALS IS SLATED TO BEGIN OPERATION BY THE MIDDLE OF THIS YEAR SUBJECT TO REGULATORY APPROVALS AND A DEFINITIVE AGREEMENT THE VENTURE WILL MAKE CHEMICALS USED IN OIL EXPLORATION AND PRODUCTION IN A RELATED MOVE NALCO SAID IT SIGNED A LETTER OF INTENT TO SELL ITS FREEPORT TEXAS PLANT AND ITS AUTOMOTIVE PAINT SPRAYBOOTH BUSINESS TO PITTSBURGHBASED PPG INDUSTRIES INC 9402040059 940204 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER FED ACTION TO RAISE INTEREST RATES STILL MAY COME SOON BUT WHEN IS UNCERTAIN SOME FED WATCHERS THOUGHT THE MOVE WAS HAPPENING YESTERDAY MORNING BUT FED POLICY MAKERS DIDN'T EVEN BEGIN THEIR TWODAY MEETING UNTIL AFTER LUNCH IF THEY DON'T ACT TODAY FED BANK PRESIDENTS WANT THE CALL TO BE MADE AT ANOTHER MEETING RATHER THAN GIVE FED CHIEF GREENSPAN INTERIM AUTHORITY TO MAKE THE MOVE HIMSELF THE NEXT POLICYMAKERS MEETING IS SET FOR MARCH 22 THE STRENGTHENING ECONOMY AND A RESTLESS BOND MARKET ADD TO PRESSURE TO RAISE RATES FOR THE FIRST TIME IN FIVE YEARS BUT CONFUSION OVER MARKET REACTION TO TODAY'S JOBLESS RATE NEW FED DATA SHOWING THAT INDUSTRY IS STILL OPERATING SHY OF CAPACITY AND A DESIRE TO SEE HOW THE FIRST QUARTER IS SHAPING UP COULD LEAD THE FED TO WAIT ABSENT FROM THIS WEEK'S MEETING DEPARTING FED MEMBERS ANGELL AND MULLINS TWO BACKERS OF HIGHER RATES PRESSURE GROWS FOR MORE CLINTON ACTION TO RESTORE HAITI'S DEMOCRACY THE HAITIAN MILITARY REMAINS IN CHARGE DESPITE US PREDICTIONS THAT SANCTIONS WOULD EXHAUST THEIR FUEL SUPPLIES BY NOW NEW YORK REP OWENS HEAD OF THE BLACK CAUCUS'S HAITIAN TASK FORCE PLANS TO CALL A CONFERENCE OF US BLACK LEADERS ON THE ISSUE HE CALLS US ACTIONS WIMPISH AND WARNS OF A NEW FLOOD OF REFUGEES US OFFICIALS CLAIM THAT THE POLICY OF APPLYING PRESSURE SHOWS SIGNS OF SPLITTING HAITI'S MILITARY LEADERS THE US AND OTHERS MAY PROPOSE MORE UNITED NATION SANCTIONS BY NEXT WEEK UNDER CONSIDERATION EXPANDING THE LIST OF HAITIANS WHOSE FOREIGN ASSETS ARE FROZEN BUT NO MILITARY MOVES ARE CONTEMPLATED THE UN ALSO MAY PUSH FOR A WORLDWIDE TRADE EMBARGO COOPER FACES NEW ATTACKS AS HIS HEALTHCAREREFORM PLAN GAINS MOMENTUM ADDING TO THIS WEEK'S BUSINESS ROUNDTABLE BACKING THE NATIONAL ASSOCIATION OF MANUFACTURERS AND FOUR OTHER BUSINESS GROUPS PRAISE THE TENNESSEE DEMOCRAT FOR WORKING WITH GOP SEN CHAFEE ON A COMPROMISE COOPER WILL ADDRESS THE NAM TODAY AND IN A MOVE SURE TO ANGER THE WHITE HOUSE HE WILL SPEAK TO ROSS PEROT'S UNITED WE STAND AMERICA TOMORROW IN DALLAS CALIFORNIA REP WAXMAN TELLS COOPER THAT BUSINESS GROUPS ARE JUST USING HIM TO UNDERCUT CLINTON'S PLAN CLINTON AIDES AND CONGRESSIONAL CRITICS CHARGE THAT COOPER'S BILL WOULD MEAN HIGHER TAXES ON THE MIDDLE CLASS AN ANALYSIS BY CITIZEN ACTION SHOWS THAT MORE THAN 30 OF THE MONEY COOPER RAISED FROM LARGE DONORS IN THE SECOND HALF OF 1993 WAS FROM HEALTH INTERESTS CALIFORNIA DEMOCRATIC REP STARK SAYS HE WOULD RATHER THROW UP THAN VOTE FOR COOPER'S BILL GETTING EVEN ANGERED BY THE BUSINESS ROUNDTABLE'S SUPPORT OF COOPER'S PLAN OVER CLINTON'S THE WHITE HOUSE MAPS NEW ATTACKS AGAINST INSURANCE COMPANIES WHICH IT CLAIMS ORCHESTRATED THE DEFEAT THOSE WHO LED THE FIGHT AGAINST US KNOW WE'RE NOT HAPPY THEY'LL BE REMINDED OF THAT FROM TIME TO TIME SAYS CLINTON AIDE JEFF ELLER GUNS AND DRUGS CLINTON WILL TAKE A HIGH PROFILE ON BOTH ISSUES AS CONGRESS WRAPS UP CRIME LEGISLATION HE WILL PROPOSE AN ANTIGUN INITIATIVE THAT WOULD GIVE PUBLICHOUSING DEVELOPMENTS AUTHORITY TO BAN GUNS ON THEIR PROPERTIES HE ALSO INTENDS TO DETAIL AN ANTIDRUG POLICY THAT WILL PROPOSE MORE MONEY FOR TREATMENT CLINTONITES SPLIT OVER WHEN TO INTRODUCE LEGISLATION TO APPROVE THE WORLDTRADE AGREEMENT US TRADE REPRESENTATIVE KANTOR'S OFFICE FAVORS EARLY MAY SOON AFTER THE PACT IS SIGNED TO MINIMIZE MOVES TO ATTACH CONDITIONS BUT THE WHITE HOUSE HESITATES FOR FEAR OF SLOWING HEALTH REFORM POSTSCRIPT PAPERS OF FORMER FED CHAIRMAN ARTHUR BURNS REVEAL A 1974 MEMO FROM FED SPOKESMAN JOSEPH COYNE ADVISING BURNS TO CALL WASHINGTON POST PUBLISHER KATHARINE GRAHAM TO COMPLAIN ABOUT COLUMNIST NICHOLAS VON HOFFMAN COYNE REPORTED THAT THENPOST BUSINESS EDITOR HOBART ROWAN AGREED IT WOULD BE AN EXCELLENT IDEA ROWAN SAYS HE DOESN'T REMEMBER THE MATTER PEROT PLOTS STRATEGY FOR PUTTING HIS IMPRINT ON THIS YEAR'S ELECTIONS THE TEXAS BILLIONAIRE WANTS TO INFLUENCE HOUSE RACES BUT CAN'T ENDORSE CANDIDATES AND KEEP THE TAXEXEMPT STATUS FOR UNITED WE STAND AMERICA SOME PEROT FOLLOWERS TALK OF RUNNING AS INDEPENDENTS BUT FOR PEROTISTAS TO HAVE AN IMPACT THEY'RE BETTER OFF TELLING PEOPLE TO VOTE AGAINST ALL INCUMBENTS SAYS POLLSTER FRANK LUNTZ PEROT'S COURSE MAY BECOME CLEARER TODAY WHEN HE KICKS OFF A MEETING OF HIS GROUP'S STATE LEADERS IN DALLAS THEY MUST DECIDE HOW TO DIVIDE EFFORTS BETWEEN PUSHING THEIR POLITICALREFORM AGENDA AND LOBBYING FOR HEALTHCARE REFORM THE INVITATION TO REP COOPER MAY SET THE STAGE FOR STEPPEDUP ATTACKS ON THE CLINTON PLAN PEROT'S BROADER CHALLENGE IS TO SHOW THAT HE STILL LEADS A BIG ARMY BACKERS ARE SPLINTERING AS HIS POPULARITY FADES POLLSTER LUNTZ SAYS MINOR MEMOS THE NEW HOTSELLING NESTING DOLL IN MOSCOW FEATURES US PRESIDENTS IT GOES FROM SMALLEST FIGURE JOHN F KENNEDY TO THE LARGEST OUTSIDE DOLL HILLARY RODHAM CLINTON CLINTON POLITICAL STRATEGIST JAMES CARVILLE PLANS A POPULIST DARK AGES WEEKEND TO COUNTER THE ELITIST RENAISSANCE WEEKEND THE PRESIDENT ATTENDS ATTENDEES AT THE SPOUSES' COUNTER DINNER TO THE BANQUET HELD BY THE ALFALFA CLUB WHICH ADMITTED THREE WOMEN THIS YEAR NUMBERED MORE THAN 50 FEMALES AND ERIC TARLOFF HUSBAND OF CLINTON ECONOMIST LAURA TYSON 9402040058 940204 BUSINESS BRIEF MAXTOR CORP DISKDRIVE MAKER TO LAY OFF 500 OF ITS 7800 EMPLOYEES MAXTOR CORP SAID IT WOULD LAY OFF 500 EMPLOYEES AS PART OF CORPORATE RESTRUCTURING THAT CAUSED THE DISKDRIVE MAKER TO TAKE AN 884 MILLION CHARGE AGAINST THIRDQUARTER EARNINGS CURRENTLY THE SAN JOSE CALIF COMPANY HAS 7800 EMPLOYEES INCLUDING THE CHARGE WHICH TOTALED 3 A SHARE THE COMPANY SAID ITS NET LOSS FOR THE PERIOD ENDED DEC 25 WAS 1213 MILLION OR 412 A SHARE A YEAR EARLIER MAXTOR EARNED 186 MILLION OR 59 CENTS A SHARE REVENUE DECLINED TO 3811 MILLION FROM 4026 MILLION MAXTOR ONE OF SEVERAL DRIVE MAKERS HURT BY FIERCE COMPETITION IN THE FASTMOVING BUSINESS SAID IT WILL PHASE OUT THE HIGHPERFORMANCE DISK DRIVES THAT WERE ITS ORIGINAL SPECIALITY INSTEAD THE COMPANY WILL FOCUS ON LESSEXPENSIVE DRIVES USED WITH DESKTOP COMPUTERS A MAXTOR SPOKESMAN SAID MOST OF THE COMPANY'S PRODUCT DEVELOPMENT WORK WILL BE CONCENTRATED AT FACILITIES IN LONGMONT COLO AND PHASED OUT OF SAN JOSE MAXTOR ALSO ANNOUNCED COMPLETION OF A PREVIOUSLY ANNOUNCED SALE OF A 40 INTEREST IN THE COMPANY TO SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRY CO AND SEVERAL RELATED MEMBERS OF THE HYUNDAI BUSINESS GROUP FOR 150 MILLION 9402040057 940204 CREDIT RATING CONSOLIDATED EDISON CO OF NEW YORK INC NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON ABOUT 45 BILLION OF THIS UTILITY'S SECURITIES THE RATING AGENCY SAID IT DOWNGRADED CON ED'S SENIOR SECURED DEBT TO DOUBLEAMINUS FROM DOUBLEA ITS SENIOR UNSECURED DEBT AND PREFERRED STOCK TO SINGLEAPLUS FROM DOUBLEAMINUS AND ITS PREFERENCE STOCK TO SINGLEA FROM SINGLEAPLUS S&P SAID THE DOWNGRADE REFLECTS EXPECTATIONS THAT MANAGEMENT WON'T BE ABLE TO SUSTAIN A FINANCIAL PROFILE COMMENSURATE WITH FORMER RATINGS IN VIEW OF LIMITED SALES GROWTH PROSPECTS DECLINING AUTHORIZED RETURNS ON EQUITY AND INCREASING PURCHASEDPOWER OBLIGATIONS A SPOKESMAN FOR CON ED SAID THE COMPANY WAS DISAPPOINTED TO LEARN ABOUT THE S&P DOWNGRADE WE THINK WHEN YOU LOOK AT OUR FINANCIAL STRENGTH THE HIGHER RATINGS HAD BEEN WARRANTED HE SAID 9402040056 940204 BUSINESS BRIEF TOYOTA MOTOR CORP AVALON NEW LARGE SEDAN IS UNVEILED BY AUTO MAKER CONTINUING ITS MOVE INTO BIGGER CARS AIMED AT AGING BABY BOOMERS TOYOTA MOTOR CORP UNVEILED A NEW LARGE SEDAN THE AVALON WHICH IS TO BE BUILT EXCLUSIVELY IN GEORGETOWN KY THE NEW CAR IS WIDER LONGER AND HAS MORE INTERIOR SPACE THAN TOYOTA'S PREVIOUS BIGGEST CAR THE CAMRY AND IS AIMED AT HOLDING ONTO CUSTOMERS WHO HAVE OUTGROWN THE CAMRY TOYOTA SAID THE AVALON WILL COME EQUIPPED WITH STANDARD DUAL AIR BAGS AUTOMATIC TRANSMISSION POWER WINDOWS AND A 192HORSEPOWER V6 ENGINE TOYOTA DIDN'T ANNOUNCE THE NEW CAR'S PRICE BUT IT IS EXPECTED TO FALL BETWEEN THE 26500 THAT THE TOPOFTHELINE CAMRY COSTS AND THE 31200 THAT THE CHEAPEST LEXUS COSTS TOYOTA SAID IT EXPECTS TO SELL 20000 TO 30000 AVALONS ANNUALLY THE CAR IS TO GO ON SALE THIS FALL 9402040055 940204 COPLEY IDENTIFIES SOURCE OF DRUG CONTAMINATION CANTON MASS COPLEY PHARMACEUTICAL INC SAID THAT IT NOW BELIEVES THE SOURCE OF BACTERIAL CONTAMINATION IN ITS ALBUTEROL SULFATE ASTHMA MEDICINE WAS A PROCESS IT USED FOR RINSING OFF EQUIPMENT IN ITS PACKAGING LINE COPLEY SAID IT DOESN'T USE THE PROCESS ON ANY OF ITS OTHER LINES IT HAS RECALLED ITS 05 ALBUTEROL FROM THE MARKET BECAUSE OF THE CONTAMINATION SEVERAL LAWSUITS HAVE BEEN FILED AGAINST COPLEY ALLEGING THAT ALBUTEROL USE CAUSED ILLNESS COPLEY SAID IT HAS RECEIVED REPORTS OF DEATHS AND ILLNESSES CLAIMED TO BE ASSOCIATED WITH THE USE OF ITS PRODUCT IT ADDED NONE OF THESE REPORTS HAVE BEEN CONFIRMED 9402040054 940204 CORONARY DISEASE POSES RISK TO 82 OF AMERICANS DESPITE LIFESTYLE CHANGES BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA SOME 82 OF AMERICANS ARE AT RISK FOR CORONARY HEART DISEASE DESPITE SOME LIFESTYLE CHANGES THAT WERE EXPECTED TO YIELD A LOWER NUMBER OF PEOPLE AT RISK OVERALL ACCORDING TO A FEDERAL STUDY EVEN MORE DISTURBING FEDERAL RESEARCHERS SAY THEIR FINDINGS INDICATE THAT ONCE SOMEONE BECOMES AT RISK FOR CORONARY HEART DISEASE NO AMOUNT OF TREATMENT CAN UNDO THE DAMAGE AND PUT THEM BACK ON PAR WITH SOMEONE WHO WAS NEVER AT RISK FOR EXAMPLE RESEARCHERS SAY PEOPLE WHO EFFECTIVELY CONTROL THEIR HIGH BLOOD PRESSURE ONE OF THE SIX MAJOR RISK FACTORS WILL REMAIN AT A HIGHER RISK FOR CORONARY HEART DISEASE THAN DO PEOPLE WHO NEVER DEVELOP HYPERTENSION ACCORDING TO THE STUDY BY THE US CENTERS FOR DISEASE CONTROL AND PREVENTION THIS REALLY POINTS OUT THE NEED FOR PRIMARY PREVENTION SAID DRUE BARRETT AN OFFICER WITH THE EPIDEMIC INTELLIGENCE SERVICE DIVISION OF THE CDC'S CARDIOVASCULAR HEALTH STUDIES BRANCH IT MEANS WE NEED TO KEEP PEOPLE FROM EVEN DEVELOPING THE RISK FACTORS DOCTORS CAUTIONED THAT THE STUDY DOESN'T MEAN THAT THOSE AT RISK NEED NOT BOTHER TRYING TO MAKE LIFESTYLE CHANGES TO REDUCE THEIR RISK THE SIX ESTABLISHED RISK FACTORS ARE OBESITY LACK OF EXERCISE HIGH BLOOD PRESSURE HIGH BLOOD CHOLESTEROL DIABETES AND CIGARETTE SMOKING DEFINED AS HAVING SMOKED AT LEAST 100 CIGARETTES IN ONE'S LIFETIME PHYSICAL ACTIVITY AND DIET CHANGES FOR EXAMPLES DO HELP TO REDUCE ONE'S RISK MEDICAL EXPERTS MAINTAINED BUT DON'T ERASE IT ALTOGETHER THE EMPHASIS NEEDS TO BE THAT YOU NEVER DEVELOP THE RISK FACTORS RATHER THAN WHAT TO DO ONCE YOU HAVE DR BARRETT SAID THAT MEANS MORE PREVENTIVE PROGRAMS NEED TO BE TARGETED TO HEALTHY YOUNG PEOPLE WHO ARE NOT AT RISK AT ALL DOCTORS SAID MEN AND WOMEN BETWEEN THE AGES OF 18 AND 34 WERE LEAST LIKELY TO BE AT RISK FOR HEART DISEASE ON A STATE BY STATE BASIS UTAH COLORADO AND WASHINGTON REPORTED THE LOWEST PERCENTAGES OF PEOPLE AT RISK WHILE SOUTH DAKOTA WEST VIRGINIA AND MISSISSIPPI REPORTED THE MOST PEOPLE AT RISK THE RESULTS OF THE STUDY CONDUCTED ON 91000 PEOPLE SURPRISED RESEARCHERS WHO EXPECTED THAT SUPPOSED LIFESTYLE CHANGES NATIONWIDE WOULD TRANSLATE INTO FEWER PEOPLE AT RISK FOR HEART DISEASE THERE WAS NO PREVIOUS FEDERAL STUDY OF THIS SIZE FOR COMPARISON BUT RESEARCHERS STILL EXPECTED A LOWER RISK GROUP THAN 82 GENERALLY CHOLESTEROL LEVELS ARE LOWER NOW THAN IN PRIOR DECADES RESEARCHERS SAID AND MANY FEWER PEOPLE SMOKE IN 1991 THE PERCENTAGE OF US ADULTS WHO SMOKED CIGARETTES HAD DROPPED TO 26 FROM 40 IN 1965 WHILE THE PERCENTAGE OF ADULTS WITH HIGH CHOLESTEROL LEVELS DECREASED TO 20 FROM 26 IN 1970 9402040053 940204 REVIEW & OUTLOOK EDITORIAL TIMIDITY'S PRICE MAYBE THE WORLD IS WATCHING THE WRONG RUSSIAN REFORM THE ECONOMIC SIDE IS TROUBLING THE POLITICAL SIDE IS SERIOUSLY DISTURBING IN THE COLUMNS ALONGSIDE SEE RELATED ARTICLE TRIALS OF A NEW RUSSIAN DISSIDENT WSJ FEB 4 1994 J MICHAEL WALLER DESCRIBES THE CURRENT TRIAL IN MOSCOW OF RUSSIAN SCIENTIST VIL MIRZAYANOV WHO IS ACCUSED OF REVEALING STATE SECRETS REGARDING PRODUCTION OF A NEW RUSSIAN CHEMICAL WEAPON CALLED NOVICHOK COMPLIANCE WITH CHEMICAL WEAPONS TREATIES ASIDE THE MIRZAYANOV TRIAL RAISES QUESTIONS ABOUT THE INTEGRITY OF RUSSIA'S LEGAL PROCESSES ABOUT THE ROLE OF THE FORMER KGB IN RUSSIA TODAY AND ABOUT WHO CONTROLS THE MILITARY COMPLEXES THIS TRIAL HOWEVER ISN'T THE ONLY ECHO BEING HEARD FROM THE SOVIET PAST A LOT OF RUSSIANS ARE ISSUING DIKTATS THESE DAYS REMINDING THE WORLD THAT A SIGNIFICANT PART OF THAT SOCIETY'S LEADERSHIP REMAINS UNTOUCHED BY POSTCOMMUNIST REFORM OR FOR THAT MATTER BY THE ORDINARY RULES OF CIVILITY AND DECENCY A FEW EXAMPLES VLADIMIR ZHIRINOVSKY WENT STORMING THROUGH THE BUDAPEST AIRPORT YESTERDAY DEMANDING THAT A HUNGARIAN AIRLINER TO MOSCOW WAIT FOR HIM BECAUSE I AM A DEPUTY OF THE RUSSIAN PARLIAMENT WHEN THE AIRLINE STAFF WASN'T IMPRESSED HE THREATENED TO PUNISH THEM WHEN HE BECOMES PRESIDENT OF RUSSIA HE GENTLY DESCRIBED THE AIRPORT AS A WHOREHOUSE AT THE SAME TIME IN MOSCOW THAT OTHER GREAT REFORMER PRIME MINISTER VIKTOR CHERNOMYRDIN WAS BANNING THE RUSSIAN PRESS FROM FURTHER COVERAGE OF CABINET MEETINGS HE NO DOUBT WANTS TO SPARE RUSSIAN VOTERS FROM THE IDIOCIES LIKELY TO BE UTTERED BY SOME OF HIS RECENT APPOINTEES THE ARROGANCE THAT INTERESTS US MOST CAME FROM RUSSIAN DEFENSE MINISTER PAVEL GRACHEV HE WAS VISITING GEORGIA NOW PART OF RUSSIA'S NEOIMPERIALIST DESIGNS MR GRACHEV USED THE OCCASION TO TELL NATO HOW TO CONDUCT ITSELF NATO YOU WILL RECALL IS THE ALLIANCE THAT AT ITS SUMMIT A MONTH AGO WENT TO GREAT PAINS NOT TO OFFEND RUSSIAN SENSIBILITIES IT TIMIDLY BOWED TO RUSSIAN DEMANDS THAT IT NOT GRANT NATO MEMBERSHIP TO RUSSIA'S FORMER WARSAW PACT SATELLITES IN GEORGIA MR GRACHEV TOLD THOSE SAME NATIONS THAT IF THEY SEE BILL CLINTON'S PARTNERSHIP FOR PEACE PROGRAM AS AN INTERMEDIATE STEP TOWARD FULL NATO MEMBERSHIP THEY HAD BETTER FORGET IT BECAUSE WE WILL NOT SUPPORT IT SO WE HAVE MR ZHIRINOVSKY AND MR GRACHEV IN THEIR OWN WAYS REASSERTING THE BREZHNEV DOCTRINE THAT CRUDE FIAT HELD THAT THE SOVIET EMPIRE WAS SACROSANCT AND THAT ALL MOSCOW'S SUBJECTS WOULD REMAIN SUBJECTS FOR ALL TIME IT DIDN'T WORK OUT THAT WAY BUT THAT WAS MAINLY BECAUSE BALTS POLES CZECHS AND HUNGARIANS WERE BRAVE ENOUGH TO RISE UP AGAINST THE ROTTEN REGIME IN MOSCOW AND EXPOSE ITS FUNDAMENTAL WEAKNESS SO WHY SHOULD THE WEST BE SO TENDER TODAY IN TRYING TO PROTECT THE SENSIBILITIES OF THESE FORMER IMPERIALISTS INSTEAD OF PACIFYING THEM THIS APPROACH IS CLEARLY HAVING THE OPPOSITE EFFECT EMBOLDENING THEM TO ISSUE ULTIMATUMS TO THE STATES THAT WERE ONCE UNDER THEIR CONTROL MR GRACHEV ALSO SAID THAT RUSSIA WOULD LIKE INTENDS TO KEEP TROOPS IN THE TRANSCAUCASUS REPUBLICS GEORGIA ARMENIA AND AZERBAIJAN RUSSIAN FOREIGN MINISTER ANDREI KOZYREV GAVE A SPEECH LAST MONTH SUGGESTING THAT RUSSIA MIGHT NOT EVEN WITHDRAW TROOPS FROM THE BALTIC STATES HE LATER BACKED HALFWAY DOWN AFTER A RUCKUS FROM WASHINGTON THESE ARE THE KINDS OF SENSIBILITIES THAT MR CLINTON AND HIS FELLOW NATO SUMMITEERS WERE TRYING TO PROTECT COULD THEY HAVE DONE WORSE IF THEY HAD INVITED THE BALTIC STATES POLAND HUNGARY AND THE CZECH AND SLOVAK REPUBLICS INTO NATO TELLING THE RUSSIANS THAT IT WAS NONE OF THEIR BUSINESS WHAT WAS THE POINT ANYWAY OF ACCEPTING THE IDEA THAT RUSSIA STILL HAS DE FACTO CONTROL OVER THESE SOVEREIGN NATIONS OR AS HENRY KISSINGER WONDERED IN A RECENT SEVERE CRITIQUE OF THE ADMINISTRATION'S PARTNERSHIP FOR PEACE IF RUSSIA CAN VETO NATO MEMBERSHIP NOW WHEN IT IS IN NEED OF ECONOMIC SUPPORT WHAT WILL IT VETO WHEN IT HAS BEEN STRENGTHENED THROUGH REFORM AND AMERICAN ECONOMIC ASSISTANCE WE ARE TEMPTED TO ASK IF SOMEONE IN THE STATE DEPARTMENT IS STILL TRYING TO PRESERVE MIKHAIL GORBACHEV'S SOVIET EMPIRE THE POINT IS THAT BY TREATING RUSSIA AS A HEGEMONIC POWER THE WEST IS CAUSING THE RUSSIANS TO BELIEVE IT THEMSELVES AND TO TRY TO TAKE MAXIMUM ADVANTAGE OF THE INVITATION MR CLINTON AND RUSSIAN POLICY MASTERMIND STROBE TALBOTT WERE WARNED ABOUT THIS BY PEOPLE WHO KNOW MUCH MORE ABOUT THE RUSSIANS THAN MR TALBOTT WILL EVER KNOW THEY ARE THE POLES BALTS CZECHS AND HUNGARIANS WHO LIVED UNDER RUSSIAN HEGEMONY FOR 40 YEARS THEY KNOW THAT THERE STILL ARE A LOT OF BULLYING ZHIRINOVSKYS IN THE RUSSIAN POWER STRUCTURE BACK IN OCTOBER INCIDENTALLY SENATOR BILL BRADLEY ASKED MR TALBOTT TO RAISE THE ISSUE OF SCIENTIST MIRZAYANOV WITH THE RUSSIANS WITH NO VISIBLE RESULTS IF MR CLINTON ISN'T TOO BUSY DIRECTING HIS ENERGIES AT DOMESTIC POLICY HE MIGHT WANT TO REVIEW FOREIGN POLICY A SUBJECT HE HARDLY TOUCHED IN HIS STATE OF THE UNION ADDRESS IF THE US AND ITS ALLIES DON'T STAND UP TO RUSSIA THEY WILL BE HEARING MORE BOLD DIKTATS IN THE DAYS AHEAD 9402040052 940204 BUSINESS BRIEF AVON PRODUCTS INC FOURTHPERIOD NET ROSE 2 THANKS TO OVERSEAS BUSINESS AVON PRODUCTS INC POSTED A 2 RISE IN FOURTHQUARTER PROFIT WITH GAINS IN INTERNATIONAL OPERATIONS COMPENSATING FOR A LARGE PROFIT DROP IN ITS US UNIT THE BEAUTY PRODUCTS CONCERN HAD NET OF 1054 MILLION OR 146 A SHARE COMPARED WITH 1033 MILLION OR 143 A SHARE A YEAR EARLIER SALES ROSE 7 TO 126 BILLION AS EXPECTED NEW YORKBASED AVON ALSO SAID ITS BOARD AUTHORIZED THE PURCHASE OF UP TO 10 OF THE COMPANY'S COMMON STOCK OR SEVEN MILLION SHARES AVON ATTRIBUTED THE SALES AND PROFIT GAINS TO ITS INTERNATIONAL UNIT AS WELL AS TO LOWER FOREIGN EXCHANGE LOSSES ITS US BUSINESS CONTINUED TO SHOW WEAKNESS US RESULTS WERE OBVIOUSLY DISAPPOINTING BUT SHOWED AN IMPROVING TREND LATE IN THE QUARTER AND SALES MOMENTUM HAS ACCELERATED SIGNIFICANTLY GOING INTO 1994 SAID CHAIRMAN JAMES E PRESTON IMPROVING SALES COMBINED WITH OUR PLANS TO REDUCE EXPENSES FROM THE UNUSUALLY HIGH 1993 LEVELS GIVES US CONFIDENCE THAT A STRONG RECOVERY IN THE PROFITABILITY IN THE US IS UNDERWAY HE SAID AVON CLOSED AT 55875 UP 2875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9402040051 940204 PORSCHE AUTO MAKER IS SEEKING TO RETUNE ITSELF FOR FRUGAL '90S SHRINKING SALES PUSH FIRM TO LOWER PRICE HURDLES TRIM PRODUCTION COSTS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PORSCHE AG THE MAKER OF PRICEY GERMAN SPORTS CARS WHOSE PRODUCTS BECAME A SYMBOL OF '80S EXCESS IS TRYING TO RETUNE ITSELF FOR THE FRUGAL '90S A PORSCHE REPRESENTS THE ULTIMATE DEFERABLE PURCHASE FREDERICK J SCHWAB THE PRESIDENT OF PORSCHE OF NORTH AMERICA INC ACKNOWLEDGED AT THE CHICAGO AUTO SHOW OUR GOAL IS TO MAKE IT OK TO DRIVE A PORSCHE AGAIN MR SCHWAB OUTLINED A STRATEGY INTENDED TO BOOST SALES 15 THIS YEAR AND TO PUSH WORLDWIDE VOLUMES TO 30000 ANNUALLY BY 1997 THE STRATEGY INCLUDES CATCHING UP WITH THE REST OF THE INDUSTRY IN ADOPTING LEAN PRODUCTION TECHNIQUES CUTTING PRICES AND INTRODUCING AN ENTRYLEVEL MODEL A NEW AD CAMPAIGN IN THE US POKES FUN AT PORSCHE'S TENDENCY FOR TAKING ITSELF TOO SERIOUSLY BUT THE STRATEGY DOESN'T INCLUDE SELLING OUT TO A LARGER AUTO MAKER AS MOST OTHER SMALL INDEPENDENT COMPANIES ALREADY HAVE I PERSONALLY DON'T THINK PORSCHE CAN KEEP ITS UNIQUENESS AND CHARACTER AS PART OF A LARGER GROUP MR SCHWAB SAID AND THE FAMILY CAN AFFORD TO STAY INDEPENDENT NONETHELESS THE CLOSELY HELD STUTTGART CONCERN IS EXPECTED TO LAUNCH A PUBLIC STOCK OFFERING THIS SPRING OF MORE THAN 440000 SHARES MR SCHWAB SAID HALF OF THE SHARES ARE TO BE PURCHASED BY THE CONTROLLING PORSCHE FAMILY OF WHOM FERDINAND PIECH THE CHAIRMAN OF VOLKSWAGEN AG IS A SCION AFTER SHEDDING HUNDREDS OF EMPLOYEES AND SUPPLIERS WORLDWIDE AND ADOPTING LEAN PRODUCTION TECHNIQUES PORSCHE MANAGED ITS FIRST PROFIT IN YEARS DURING THE FISCAL YEAR ENDED JULY 1993 MR SCHWAB SAID PORSCHE HOPES ITS NEW PRICING STRATEGY WILL HELP BOOST SALES WHEN REDESIGNED 911 COUPES AND CABRIOLETS DEBUT THIS MARCH IN THE US BOTH WILL BE PRICED ABOUT 5000 LOWER THAN THEIR COMPARABLY EQUIPPED PREDECESSORS 59900 FOR THE COUPE 68200 FOR THE CABRIOLET IN 1997 PORSCHE IS TO INTRODUCE A COUPE BASED ON A POPULAR AUTOSHOW CONCEPT CAR THE BOXER PRICED UNDER 39950 LOWERING THE HURDLE FOR ENTRYLEVEL PORSCHE BUYERS TOGETHER WITH ITS 80000PLUS 928 MODELS THIS WILL GIVE PORSCHE A MODEL LINEUP IN 1997 THAT SHOULD BOOST US SALES TO ABOUT 10000 CARS A YEAR MR SCHWAB SAID 9402040050 940204 BUSINESS BRIEF ROSS STORES INC RETAILER EXPECTS TO REPORT 13 DROP IN FISCAL 1994 NET ROSS STORES INC CITING INCREASED FOURTHQUARTER PRICE COMPETITION SAID IT EXPECTS TO REPORT A DECLINE OF ABOUT 13 IN FISCAL 1994 EARNINGS THE NEWARK CALIF DISCOUNT RETAIL CHAIN SAID IT EXPECTS TO REPORT PROFIT OF BETWEEN 112 AND 115 A SHARE FOR THE YEAR ENDED JAN 29 ROSS HAD NET INCOME OF 34 MILLION OR 132 A SHARE A YEAR EARLIER THE COMPANY WILL REPORT EARNINGS IN MARCH NORMAN FERBER ROSS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EARNINGS DECLINED BECAUSE OF COMPETITION AMONG APPAREL RETAILERS DURING THE HOLIDAY SEASON ROSS SAID ITS JANUARY SALES ROSE 14 TO 56 MILLION FROM 49 MILLION A YEAR AGO SAMESTORE SALES FOR THE PERIOD ROSE 5 FOR THE FISCAL YEAR SALES WERE 112 BILLION UP 8 FROM 104 BILLION A YEAR EARLIER SAMESTORE SALES FOR THE PERIOD FELL 1 9402040048 940204 BUSINESS BRIEF REDWOOD EMPIRE BANCORP FOURTHQUARTER PROFIT ROSE OVER 40 FIRM ESTIMATES REDWOOD EMPIRE BANCORP SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 1 MILLION TO 11 MILLION OR 34 CENTS TO 36 CENTS A SHARE UP MORE THAN 40 FROM THE YEAR EARLIER THE SANTA ROSA CALIF COMPANY PART SAVINGSANDLOAN ASSOCIATION AND PART COMMERCIAL BANK CITED A FLOOD OF NEW HOMELOAN BUSINESS THE ESTIMATED RESULTS COMPARE WITH NET INCOME OF 709000 OR 28 CENTS A SHARE IN 1992'S FOURTH QUARTER FOR ALL OF 1993 REDWOOD EXPECTS TO REPORT EARNINGS OF 45 MILLION TO 46 MILLION OR 153 TO 154 A SHARE UP 73 FROM 26 MILLION OR 111 A SHARE IN 1992 SAID JOHN H DOWNEY JR CHAIRMAN THE ESTIMATES ARE WITHIN THE RANGE EXPECTED BY ANALYSTS REDWOOD SAID IT PLANS TO ANNOUNCE RESULTS FEB 14 THE S&L BUSINESS GENERATES 75 OF ITS EARNINGS MAINLY THROUGH ORIGINATIONS OF HOME MORTGAGES LAST YEAR IT WROTE 19 BILLION IN SUCH LOANS A 127 INCREASE FROM 1992 9402040047 940204 SEC QUERIED ON OVERSIGHT OF UTILITIES THAT DIVERSIFY WASHINGTON THE CHAIRMEN OF TWO HOUSE SUBCOMMITTEES ARE QUESTIONING THE ABILITY OF THE SECURITIES AND EXCHANGE COMMISSION TO SUPERVISE PUBLIC UTILITY COMPANIES THAT ENTER THE TELECOMMUNICATIONS BUSINESS DEMOCRATIC REPS EDWARD MARKEY OF MASSACHUSETTS AND PHILIP SHARP OF INDIANA SAID UTILITY COMPANIES' PROPOSALS TO ADD TELECOMMUNICATIONS TO THEIR BUSINESS PORTFOLIOS RAISE A PROFOUND PUBLICPOLICY ISSUE CONCERNING WHETHER MULTISTATE ELECTRIC UTILITIES WOULD BE EFFECTIVELY REGULATED IF THEY WERE ALLOWED TO DIVERSIFY INTO FIELDS NOT RELATED TO THEIR CORE ENERGY BUSINESSES THE SEC OVERSEES PUBLIC UTILITY HOLDING COMPANIES AND MUST APPROVE THE COMPANIES' DIVERSIFICATION INTO OTHER BUSINESSES THE SEC'S OVERSIGHT DATES BACK TO LEGISLATION THAT FOLLOWED THE 1929 STOCKMARKET CRASH EARLIER THIS WEEK REP RICK BOUCHER D VA SUGGESTED THAT HE WOULD OFFER LEGISLATION GIVING UTILITY COMPANIES A BLANKET EXEMPTION FROM SEC REGULATIONS THAT COULD PROHIBIT THEIR JOINING THE TELECOMMUNICATIONS BUSINESS MR BOUCHER'S DECLARATION PROMPTED MR MARKEY CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE AND MR SHARP CHAIRMAN OF THE HOUSE ENERGY AND POWER SUBCOMMITTEE TO DIRECT A SERIES OF QUESTIONS TO SEC CHAIRMAN ARTHUR LEVITT REGARDING THE STATUS OF ANY UTILITY COMPANY REQUESTS TO ENTER THE TELECOMMUNICATIONS BUSINESS AND THE ABILITY OF THE SEC TO REGULATE SUCH WIDERANGING INTERESTS MR BOUCHER ALSO SIGNED THE LETTER TO MR LEVITT 9402040046 940204 GOVERNMENT SAYS TRANSPORTATION FIRMS MUST TEST 25 OF EMPLOYEES FOR ALCOHOL BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT SAID IT WILL REQUIRE TRANSPORTATION COMPANIES TO TEST FOR ALCOHOL USE 25 OF WORKERS WHOSE JOBS AFFECT SAFETY BUT WILL ALLOW THE RATE TO CHANGE DEPENDING ON HOW EACH INDUSTRY PERFORMS THE NEW TESTING RULES CRAFTED TO MEET A LAW PASSED IN 1991 ALSO WOULD DOUBLE THE NUMBER OF TRANSPORTATION WORKERS COVERED BY FEDERAL DRUGTESTING RULES TO ABOUT 75 MILLION WORKERS THE ALCOHOL AND DRUGTESTING RULES WILL COVER AIRLINES TRUCKING COMPANIES TRANSIT SYSTEMS RAILROADS AND GASPIPELINE CONCERNS THE EXTRA DRUG AND ALCOHOL TESTING WOULD COST BUSINESSES AN ESTIMATED 2 BILLION OVER THE NEXT 10 YEARS AND THE RULES COULD FACE LEGAL CHALLENGES FROM UNIONS AND EMPLOYERS BOTH GROUPS FOUND FAULT WITH THE REGULATIONS YESTERDAY UNIONS SAID THE RULES DON'T GIVE WORKERS ENOUGH PROTECTION AGAINST ERRONEOUS TEST RESULTS AND ALLOW EMPLOYERS TO IMPOSE A TOUGHER STANDARD THAN THE GOVERNMENT DOES THE RULES REQUIRE AN EMPLOYEE WHOSE BLOODALCOHOL LEVEL TESTS ABOVE 04 TO BE RELIEVED FROM SAFETYRELATED DUTIES BUT AN EMPLOYEE COULD FALL UNDER THE THRESHOLD AND STILL BE FIRED SAID ED WYTKIND AN EXECUTIVE DIRECTOR OF THE AFLCIO'S TRANSPORTATION TRADES DEPARTMENT INDUSTRY REPRESENTATIVES SAID THE RULES WOULD BE COSTLY FOR BUSINESSES TO PUT INTO EFFECT PARTICULARLY BECAUSE THE TRANSPORTATION DEPARTMENT WOULD ALSO REQUIRE EMPLOYEES TO BE TESTED FOR ALCOHOL WHEN THEY APPLY FOR A JOB PREEMPLOYMENT TESTING IS AN IQ TEST NOT A SAFETY TEST SAID JOHN J COLLINS A LOBBYIST FOR THE AMERICAN TRUCKING ASSOCIATIONS HE ALSO QUESTIONED THE VALUE OF ALCOHOL TESTS THAT TRUCKERS WOULD RECEIVE ONLY WHEN THEY RETURNED TO THE TERMINALS AND TESTS THAT INDEPENDENT TRUCKERS WOULD PERFORM THEMSELVES TRANSPORTATION DEPARTMENT OFFICIALS SAID THE SAFETY BENEFITS FAR EXCEED THE COSTS THEY SAID THE GOVERNMENT COULDN'T PREVENT EMPLOYERS FROM TAKING THEIR OWN ACTIONS AGAINST EMPLOYEES AND THAT PEOPLE HAVE SHOWN UP FOR AIRLINE INTERVIEWS WITH DRUGS IN THEIR SYSTEM FEDERICO PENA TRANSPORTATION SECRETARY SAID UNIONS AND BUSINESSES SHOULD SPEND THEIR MONEY REDUCING DRUG AND ALCOHOL USE INSTEAD OF FIGHTING THE RULES MR PENA NOTED THAT SMALL BUSINESSES WOULD HAVE UNTIL JANUARY 1996 INSTEAD OF NEXT JANUARY TO BEGIN ALCOHOLTESTING AND SAID THE RULES HAVE CLEAR COMMONSENSE INCENTIVES FOR BUSINESSES TO DECREASE ALCOHOL AND DRUG USE INDUSTRIES THAT PERFORM WELL IN RANDOM ALCOHOL TESTS COULD TEST AS FEW AS 10 OF THEIR WORKERS EACH YEAR WHILE INDUSTRIES THAT PERFORM POORLY WOULD HAVE TO TEST 50 THE AIRLINE INDUSTRY MUST NOW TEST 50 OF PILOTS FLIGHT ATTENDANTS AND GROUND CREWS FOR DRUGS AIRLINES WOULD NOW BE ALLOWED TO TEST 25 INSTEAD SINCE POSITIVE RESULTS HAVE BEEN BELOW THE TRANSPORTATION DEPARTMENT'S THRESHOLD 9402040045 940204 BUSINESS BRIEF SEAGULL ENERGY CORP INCREASE POSTED LAST YEAR IN PROVEN ENERGY RESERVES SEAGULL ENERGY CORP SAID IT INCREASED ITS PROVEN RESERVES OF NATURAL GAS CRUDE OIL AND CONDENSATE SIGNIFICANTLY SINCE THE BEGINNING OF LAST YEAR THE HOUSTON OIL AND GAS EXPLORER AND PRODUCER SAID THAT IT ENDED 1993 WITH PROVEN US RESERVES OF 915 BILLION CUBIC FEET OF NATURAL GAS AND 148 MILLION BARRELS OF CRUDE OIL CONDENSATE AND NATURALGAS LIQUIDS OR A TOTAL ENERGY EQUIVALENT OF ONE BILLION CUBIC FEET OF NATURAL GAS A YEAR EARLIER THE COMPANY'S PROVEN US RESERVES TOTALED 884 BILLION CUBIC FEET OF NATURAL GAS AND 181 MILLION BARRELS OF OIL CONDENSATE AND NATURALGAS LIQUIDS OR A TOTAL OF 993 BILLION CUBIC FEET OF NATURALGAS EQUIVALENTS LAST MONTH SEAGULL EXPANDED ITS RESERVE BASE TO INCLUDE CANADIAN GAS AND OIL PROPERTIES WHEN IT ACQUIRED SEAGULL ENERGY CANADA LTD FORMERLY NOVALTA RESOURCES INC 9402040044 940204 BUSINESS BRIEF CALGENE INC FISCAL 1994 LOSS ANTICIPATED WITH DELAY IN FDA ACTION CALGENE INC DAVIS CALIF SAID ITS FISCAL 1994 LOSS WILL BE LARGER THAN 1993'S LOSS BECAUSE OF DELAYS IN GETTING FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS GENETICALLY ENGINEERED FLAVR SAVR TOMATO CALGENE REPORTED A LOSS OF 256 MILLION OR 113 A SHARE IN THE 1993 FISCAL YEAR ENDED JUNE 30 THE BIOTECH COMPANY SAID THE FDA IS STILL REVIEWING FLAVR SAVR WHICH IS EXPECTED TO LAST LONGER AND TASTE BETTER THAN CONVENTIONAL TOMATOES FEDERAL REGULATORS HAVE GIVEN NO INDICATION WHEN THEY WILL CLEAR THE TOMATO TO BE SOLD CALGENE SAID THE COMPANY WHICH EXPECTED TO BEGIN MARKETING FLAVR SAVR LAST FALL NOW SAYS IT DOESN'T ANTICIPATE BEING ABLE TO PUT IT ON THE MARKET UNTIL AT LEAST THE SECOND QUARTER OF THIS CALENDAR YEAR CALGEN OFFICIALS DECLINED TO SPECULATE ON HOW MUCH LARGER THE LOSS WILL BE FOR THIS FISCAL YEAR BUT THEY SAID THE FDA HOLDUP AND PREMARKETING COSTS ARE PUSHING UP COSTS BEYOND PREVIOUS ESTIMATES 9402040043 940204 LEGEND TO MARKET PC COMPONENTS IN FOREIGN MARKET BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG LEGEND HOLDINGS LTD A HONG KONG COMPANY THAT LAST WEEK CLOSED SUBSCRIPTIONS ON ITS FIRST SHARE ISSUE WILL BEGIN MARKETING PERSONALCOMPUTER COMPONENTS INTERNATIONALLY IN MARCH ITS VICE CHAIRMAN SAID DANNY TP LUI WHO IS RESPONSIBLE FOR INTERNATIONAL SALES SAID THE COMPANY PLANS TO MARKET AN UPGRADABLE ALLINONE BOARD FOR PCS STARTING IN MARCH LEGEND HOPES TO SELL THE COMPONENT AND FUTURE PRODUCTS SUCH AS SPECIALIZED ADDON BOARDS TO BRANDNAME COMPUTER COMPANIES THE COMPONENTS WILL BE DESIGNED AND MADE BY LEGEND IN CHINA SELLING SUCH PRODUCTS OVERSEAS WOULD BE A NEW BUSINESS STRATEGY FOR THE GROUP LEGEND A SINOHONG KONG JOINT VENTURE IS ONE OF THE LARGEST DISTRIBUTORS AND MAKERS OF PERSONAL COMPUTERS IN CHINA AND HONG KONG THE GROUP'S SALES IN THE YEAR ENDED IN MARCH 1993 TOTALED HK18 BILLION US233 MILLION ON WHICH IT EARNED AN AFTERTAX PROFIT OF HK265 MILLION THE GROUP HAS PROJECTED AFTERTAX PROFIT FOR THE CURRENT YEAR OF AT LEAST HK65 MILLION WHILE THE OUTLOOK IS BRIGHT MICHAEL LY NG DEPUTY GENERAL MANAGER SAID LEGEND'S SHARE OF THE CHINESEMADE PERSONALCOMPUTER MARKET MAY HAVE SLIPPED LAST YEAR LEGENDBRAND COMPUTERS MADE IN CHINA ACCOUNTED FOR ABOUT 65 OF THE 240000 OR SO COMPUTERS SOLD IN CHINA DURING 1992 MR NG ESTIMATED THAT AS MANY AS 400000 PCS WERE SOLD LAST YEAR IN CHINA OF LEGEND'S OWNBRAND SALES THERE MR NG SAID THE VOLUME HAS GROWN BUT I DON'T KNOW ABOUT MARKET SHARE HE SAID HIS UNCERTAINTY STEMMED FROM SURGING POPULARITY OF MOREEXPENSIVE FOREIGN BRANDNAME COMPUTERS HOWEVER BECAUSE LEGEND IS THE LARGEST DISTRIBUTOR OF AST RESEARCH INC COMPUTERS AND A BIG DISTRIBUTOR OF OTHER FOREIGN BRANDS IN CHINA HE SAID THE COMPANY'S OVERALL SALES IN CHINA CONTINUE TO GROW RAPIDLY LEGEND ALSO IS A LEADER IN SUPPLYING COMPUTERS FOR SPECIALIZED VALUEADDED PURPOSES IT ALSO PROVIDES COMPONENTS USEFUL FOR CHINESELANGUAGE PROGRAMS AND IS DESIGNING NEW SEMICONDUCTOR CHIPS AND MOTHERBOARDS SUCH SALES ARE RISING FAST MR NG SAID AND THE GROUP IS INVESTING HEAVILY IN RESEARCH AND DEVELOPMENT THE COMPANY'S NEW ISSUE OF 1688 MILLION SHARES IS EXPECTED TO RAISE HK2245 MILLION THE SECURITIES WILL TRADE ON THE HONG KONG STOCK EXCHANGE LATE WEDNESDAY THE COMPANY ANNOUNCED THAT ITS NEW ISSUE WAS ABOUT 405 TIMES OVERSUBSCRIBED APPLICATIONS FOR SHARES BROUGHT IN HK918 BILLION REFUNDS FOR UNSUCCESSFUL APPLICATIONS WILL BE REFUNDED AFTER SHARES ARE ALLOTTED LEGEND PLANS TO USE THE FUNDS IT RAISES TO EXPAND ITS PRODUCTION AND RESEARCH AND DEVELOPMENT CAPABILITIES IT ALSO WILL PUT ABOUT HK60 MILLION TOWARD ESTABLISHING AN INTERNATIONALSALES NETWORK 9402040042 940204 TECHNOLOGY LAWSUIT SPECTRUM AGREED TO SETTLE IS BEING EXPANDED BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SHAREHOLDER LAWSUIT THAT SPECTRUM INFORMATION TECHNOLOGIES INC HAD AGREED TO SETTLE IS BEING EXPANDED AFTER NEW DISCLOSURES OF INSIDER SALES AND A FEDERAL INVESTIGATION OF THE WIRELESSTECHNOLOGY COMPANY SPECTRUM IS UNDER SCRUTINY FROM THE SECURITIES AND EXCHANGE COMMISSION BECAUSE OF UPBEAT STATEMENTS IT MADE ABOUT THE VALUE OF ITS PATENTS IN NOVEMBER SPECTRUM SAID IT HAD AGREED TO SETTLE A RELATED CLASSACTION SHAREHOLDER LAWSUIT FOR 15 MILLION AND NEW WARRANTS PENDING FINAL TERMS JOHN SCULLEY SPECTRUM'S NEW CHIEF EXECUTIVE HAD MADE SETTLING THE LITIGATION A TOP PRIORITY WHEN HE JOINED THE COMPANY IN OCTOBER COMPANY EXECUTIVES HAVE SINCE CITED THE SETTLEMENT AS A SIGN THAT THE COMPANY IS PUTTING ITS PROBLEMS BEHIND IT BUT THE LAWYER FOR SHAREHOLDER PLAINTIFFS YESTERDAY SAID THE TWO SIDES HAVEN'T SETTLED ANYTHING IN LIGHT OF WHAT HAS BEEN OCCURRING OVER THE LAST SEVERAL WEEKS OUR DISCOVERY IN THIS CASE IS BEING BROADENED SUBSTANTIALLY THE ATTORNEY DANIEL KRASNER SAID MR KRASNER SAID THE SETTLEMENT AGREEMENT WAS NEVER PRESENTED TO THE COURT AND THE COMPLAINT NOW WILL BE EXPANDED IN LIGHT OF RECENT DISCLOSURES ABOUT SPECTRUM THESE INCLUDE THE SALE OF STOCK BY COMPANY PRESIDENT PETER CASERTA AND OTHER INSIDERS AFTER THE HIRING OF MR SCULLEY SENT SHARES RISING STRONGLY THE DISCLOSURE OF THE SEC INVESTIGATION AND THE DISMISSAL OF ARTHUR ANDERSEN & CO AS SPECTRUM'S AUDITOR AFTER THE ACCOUNTING FIRM FOUND PROBLEMS WITH INTERNAL CONTROLS OFFICIALS OF SPECTRUM WHICH IS BASED IN MANHASSET NY COULDN'T BE REACHED FOR COMMENT THE SHAREHOLDER SUITS LATER CONSOLIDATED INTO A CLASSACTION COMPLAINT IN FEDERAL COURT IN NEW YORK WERE FILED AFTER THE WILD RIDE TAKEN BY SPECTRUM'S STOCK LAST SPRING WHEN AMERICAN TELEPHONE & TELEGRAPH CO DISAVOWED A BOAST FROM MR CASERTA THAT THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTIES SPECTRUM SHARES FELL 125 CENTS OR 2 TO 60625 IN NASDAQ STOCK MARKET TRADING YESTERDAY 9402040041 940204 UPS FACES STRIKE THREAT BY THE TEAMSTERS UNION THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS IS THREATENING TO STRIKE UNITED PARCEL SERVICE OF AMERICA ON MONDAY BECAUSE THE PACKAGEDELIVERY COMPANY IS RAISING ITS PACKAGEWEIGHT LIMITS JUST FOUR MONTHS AFTER ITS LAST STRIKE THREAT AGAINST UPS THE UNION SAID IT WILL GRIND THE COMPANY TO A HALT IF IT GOES THROUGH WITH A PLAN TO ACCEPT PACKAGES OF 150 POUNDS UP FROM THE CURRENT 70 POUNDS THE CHANGE TAKES EFFECT MONDAY MANY IN THE INDUSTRY CONSIDERED A STRIKE UNLIKELY THE 150POUND WEIGHT LIMIT IS STANDARD IN THE INDUSTRY THEY SAY AND IS USED BY UPS'S MAIN COMPETITOR FEDERAL EXPRESS CORP MOREOVER THE UNION WOULD HAVE NO LEGAL GROUNDS FOR A STRIKE AND COULD NOT SURVIVE A BITTER LABOR DISPUTE THEY SAID A UPS SPOKESMAN SAID THE COMPANY ALSO BELIEVES A STRIKE IS UNLIKELY FRANKLY WE DON'T UNDERSTAND WHY THIS HAS BECOME SUCH AN ISSUE HE SAID COMPANY OFFICIALS WILL MEET WITH UNION OFFICIALS TODAY TEAMSTERS OFFICIALS CONTEND THEY DO HAVE SOLID LEGAL GROUNDS FOR A STRIKE UNDER FEDERAL LABOR LAW A COMPANY MUST NEGOTIATE WITH A UNION FOR MAJOR CHANGES IN WORKING CONDITIONS THEY SAY THE CLOSELY HELD PACKAGE CARRIER IS THE LARGEST TEAMSTERS EMPLOYER WITH 165000 UNIONIZED WORKERS SEVERAL ANALYSTS SUGGESTED THE TEAMSTERS MAY BE TRYING TO STRENGTHEN ITS OWN POSITION IN CURRENT NEGOTIATIONS WITH THE FREIGHTERS THE UNION RECENTLY KICKED OFF TALKS WITH THE NATION'S LARGEST TRUCKING FIRMS FOR A NEW THREEYEAR CONTRACT 9402040040 940204 BUSINESS BRIEF ALLIEDLYONS PLC HIRAM WALKER UNIT ACQUIRES A GERMAN DISTRIBUTING FIRM ALLIEDLYONS PLC A BRITISH BEVERAGE CONCERN SAID ITS HIRAM WALKER SPIRITS AND WINES UNIT ACQUIRED PRIVAT WEINBRENNEREI JACOBI GMBH A GERMAN DISTRIBUTOR ALLIEDLYONS SAID THE CONSIDERATION PAID WASN'T MATERIAL TO ITS NET ASSETS JACOBI HAS BEEN DISTRIBUTING CERTAIN HIRAM WALKER BRANDS SINCE LAST AUGUST BEGINNING IN APRIL JACOBI WILL ASSUME RESPONSIBILITY FOR THE SALES AND MARKETING OF ADDITIONAL HIRAM WALKER BRANDS THAT HAVE BEEN DISTRIBUTED BY UNI HANDELSGESELLSCHAFT GMBH ALLIEDLYONS SAID THE COMPANY SAID THE ACQUISITION COMPLETES ITS PLANS TO STREAMLINE DISTRIBUTION OPERATIONS IN FRANCE AND GERMANY A DISTRIBUTION PACT WITH ANOTHER GERMAN COMPANY BORCO WILL BE MAINTAINED ALLIEDLYONS SAID BORCO JACOBI AND UNI DISTRIBUTE DIFFERENT HIRAM WALKER BRANDS 9402040039 940204 BUSINESS BRIEF MBIA INC FOURTHQUARTER EARNINGS CLIMBED 28 REVENUE 23 MBIA INC AN INSURER OF MUNICIPAL BONDS REPORTED A 28 INCREASE IN FOURTHQUARTER NET INCOME AS THE COMPANY CONTINUED TO CAPITALIZE ON AN ACTIVE MUNICIPAL BONDISSUING MARKET FOR THE QUARTER MBIA REPORTED NET INCOME OF 627 MILLION OR 148 A SHARE COMPARED WITH 489 MILLION OR 116 A SHARE IN THE YEAREARLIER QUARTER REVENUE INCREASED 23 TO 1095 MILLION FROM 889 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MBIA STOCK FELL 1 OR 16 TO CLOSE AT 62875 A SHARE 9402040038 940204 WHO'S NEWS BACA QUITS AT LAND AGENCY OVER CLASH WITH BABBITT WASHINGTON JIM BACA THE CONTROVERSIAL HARDDRIVING HEAD OF THE BUREAU OF LAND MANAGEMENT RESIGNED IN A CLASH WITH INTERIOR SECRETARY BRUCE BABBITT OVER MANAGEMENT STYLE MR BABBITT SAID HE HAD OFFERED MR BACA THE POST OF DEPUTY ASSISTANT SECRETARY FOR LAND AND MINERALS MANAGEMENT BUT MR BACA DECLINED THE ASSIGNMENT MR BABBITT INSISTED THAT MR BACA'S VIEWS ON BOOSTING GRAZING FEES PAID BY RANCHERS AND ON OTHER ISSUES DON'T DIFFER FROM HIS POLICIES BUT SAID JIM AND I HAVE DIFFERENT APPROACHES TO MANAGEMENT STYLE AND CONSENSUS BUILDING MR BACA HAS RILED MANY RANCHERS SENATORS AND GOVERNORS BY PUSHING ENVIRONMENTALIST POLICIES MR BACA FORMER NEW MEXICO LAND COMMISSIONER HAD STRONG SUPPORT FROM ENVIRONMENTAL GROUPS THE GROUPS CONTENDED THAT MR BACA WAS FORCED OUT BECAUSE HE PUSHED HARD FOR THE INTERIOR DEPARTMENT'S EFFORTS TO CHANGE GRAZING AND MINING POLICIES MR BABBITT NAMED MICHAEL DOMBECK ACTING BUREAU DIRECTOR MR DOMBECK IS CURRENTLY CHIEF OF STAFF TO ASSISTANT SECRETARY BOB ARMSTRONG AND ACTING DEPUTY ASSISTANT SECRETARY 9402040037 940204 BUSINESS BRIEF COLGATEPALMOLIVE CO FOURTHQUARTER PROFIT ROSE 11 ON 39 GAIN IN REVENUE COLGATEPALMOLIVE CO SAID FOURTHQUARTER NET INCOME ROSE 11 LED BY STRONG GAINS OVERSEAS AND IN ITS HILLS PETFOOD BUSINESS THE NEW YORKBASED CONSUMERPRODUCTS GIANT POSTED NET OF 1221 MILLION OR 78 CENTS A SHARE UP FROM 110 MILLION OR 66 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER CLIMBED 39 TO 184 BILLION FROM 177 BILLION COLGATE SAID IT ENTERS 1994 WITH INCREASING MOMENTUM CITING A SHIFT TO HIGHERMARGIN PRODUCTS IT SAID ITS GROSS PROFIT MARGIN REACHED 476 UP FROM 469 IN THE FOURTH QUARTER OF 1992 FOR THE FULL YEAR NET DROPPED 60 TO 1899 MILLION OR 108 A SHARE FROM 477 MILLION OR 292 A SHARE IN 1992 THE 1992 RESULTS WERE DEPRESSED BY A CHARGE OF 3582 MILLION OR 230 A SHARE FOR ACCOUNTING CHANGES REVENUE FOR THE YEAR GREW 19 TO 714 BILLION FROM 701 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE COLGATE CLOSED AT 6125 UP 50 CENTS 9402040036 940204 BUSINESS BRIEF US SHOE CORP COMPARABLESTORE SALES FELL BY 83 IN 4WEEK PERIOD US SHOE CORP SAID COMPARABLESTORE SALES FOR THE FOUR WEEKS ENDED LAST SATURDAY FELL 83 COMPARABLESTORE SALES ARE THOSE FOR STORES OPEN AT LEAST A YEAR THE CINCINNATI COMPANY SAID THE POOR WEATHER CONDITIONS IN THE EASTERN HALF OF THE US AS WELL AS THE RECENT CALIFORNIA EARTHQUAKE HURT SALES RESULTS FOR THE COMPANY'S WOMEN'SAPPAREL OPTICAL AND FOOTWEAR RETAILING BUSINESSES TOTAL SALES FOR THE THREE RETAILING GROUPS LAST MONTH WERE 1221 MILLION COMPARED WITH 1374 MILLION IN JANUARY 1993 US SHOE SAID THIS REPRESENTS AN 112 DECREASE US SHOE SAID THAT IN THE YEAR ENDED LAST SATURDAY COMPARABLESTORE SALES INCREASED 05 TOTAL RETAIL SALES FOR THE YEAR WERE 216 BILLION A 09 DROP FROM THE SAME PERIOD A YEAR EARLIER 9402040035 940204 BUSINESS BRIEF CONTINENTAL AIRLINES CARRIER REPORTS NET LOSS WIDENED IN FOURTH QUARTER CONTINENTAL AIRLINES' NET LOSS WIDENED TO 265 MILLION OR 147 A SHARE IN THE FOURTH QUARTER FROM 139 MILLION A YEAR EARLIER THE CARRIER ATTRIBUTED THE RESULTS TO LOWER CAPACITY DUE TO THE WITHDRAWAL OF 11 PLANES FROM ITS FLEET FOR OVERHAULS THE PERSHARE FIGURE FOR THE 1992 QUARTER ISN'T AVAILABLE BECAUSE THE HOUSTON COMPANY HAS RESTATED ITS RESULTS AND ADOPTED FRESHSTART ACCOUNTING SINCE EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION LAST APRIL CONTINENTAL'S CHIEF EXECUTIVE OFFICER ROBERT R FERGUSON III SAID IN A STATEMENT THAT WE ARE NEVER SATISFIED WITH A NET LOSS BUT WE ARE CONFIDENT THAT THE NECESSARY ELEMENTS ARE COMING TOGETHER AND WILL PRODUCE SIGNIFICANTLY BETTER RESULTS IN THE FUTURE CONTINENTAL POSTED AN OPERATING PROFIT FOR THE QUARTER OF 85 MILLION COMPARED WITH AN OPERATING LOSS OF 436 MILLION A YEAR EARLIER REVENUE EDGED UP TO 137 BILLION FROM 134 BILLION MR FERGUSON CITED THE INTRODUCTION LAST FALL OF LOWFARE SHORTHAUL SERVICE PRIMARILY IN THE SOUTHEAST 9402040034 940204 INTERNATIONAL BRIEF CIE FINANCIERE DE PARIBAS NET ROSE AN ESTIMATED 58 TO 238 MILLION TOTAL IN '93 CIE FINANCIERE DE PARIBAS PARIS ESTIMATED YESTERDAY THAT ITS 1993 GROUP NET INCOME ROSE 58 TO 14 BILLION FRANCS 238 MILLION FROM 886 MILLION FRANCS IN 1992 PARIBAS CHAIRMAN ANDRE LEVYLANG ATTRIBUTED MUCH OF THE INCREASE TO A STRONG PERFORMANCE OF CAPITALMARKET OPERATIONS AND BANKING OPERATIONS OF THE GROUP'S BANQUE PARIBAS UNIT PARIBAS SAID THAT ITS INDUSTRIAL PORTFOLIO CONTRIBUTED LITTLE TO GROUP PROFIT IN 1993 BECAUSE THERE WERE FEW MAJOR ASSET SALES NEVERTHELESS IT SAID LATENT CAPITAL GAINS IN ITS INDUSTRIAL PORTFOLIO WHICH WAS VALUED AT 40 BILLION FRANCS AT THE END OF 1993 AMOUNT TO 10 BILLION FRANCS THE VALUE OF THE COMPANY'S FINANCIAL PORTFOLIO IS ESTIMATED AT 20 BILLION FRANCS 9402040032 940204 BUSINESS BRIEF GENERAL INSTRUMENT CORP FOURTHQUARTER NET SOARED ON STRONG CABLETV SALES GENERAL INSTRUMENT CORP SAID FOURTHQUARTER NET INCOME LEAPED AMID BOOMING SALES FOR CABLETELEVISION EQUIPMENT NET JUMPED TO 395 MILLION OR 64 CENTS A SHARE FROM 72 MILLION OR 12 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 37 TO 4084 MILLION FROM 2981 MILLION CHICAGOBASED GENERAL INSTRUMENT REPORTED GAINS IN ALL BUSINESS AREAS INCLUDING DIGITAL COMPRESSION TECHNOLOGY CABLE TV SETTOP BOXES AND OTHER GEAR FOR VIDEO DISTRIBUTION AND TRANSMISSION FOR THE FULL YEAR NET INCOME WAS 906 MILLION OR 148 A SHARE AGAINST A LOSS OF 53 MILLION OR 108 A SHARE IN 1992 THE 1992 RESULTS INCLUDE A CHARGE OF 116 MILLION OR 24 CENTS A SHARE RELATED TO EARLY EXTINGUISHMENT OF DEBT SALES FOR THE YEAR ROSE 30 TO 139 BILLION FROM 107 BILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GENERAL INSTRUMENT CLOSED AT 59875 UP 50 CENTS 9402040031 940204 US AND JAPAN TO RESUME TALKS ON ACCESS TO TRADE TOKYO THE US AND JAPANESE GOVERNMENTS HAVE AGREED TO RESUME STALLED NEGOTIATIONS OVER REACHING A NEW TRADE FRAMEWORK IN WASHINGTON ON MONDAY A SENIOR JAPANESE GOVERNMENT OFFICIAL SAID THE TWO COUNTRIES ARE TRYING TO REACH AN AGREEMENT ON INCREASING FOREIGN ACCESS TO JAPANESE MARKETS IN AUTOS AND AUTO PARTS INSURANCE AND GOVERNMENT PROCUREMENT BY THE TIME PRIME MINISTER MORIHIRO HOSOKAWA MEETS IN WASHINGTON WITH PRESIDENT CLINTON NEXT FRIDAY THE TWO COUNTRIES DECIDED TO RESTART THE TALKS BETWEEN HIGHLEVEL NEGOTIATORS AFTER US TRADE REPRESENTATIVE MICKEY KANTOR SPENT THE WEEK IN TOKYO MEETING WITH TOP JAPANESE POLITICIANS AND MAKING VEILED THREATS OF SANCTIONS IF AN AGREEMENT ISN'T REACHED THE SENIOR JAPANESE GOVERNMENT OFFICIAL WHO BRIEFED REPORTERS ON CONDITION OF ANONYMITY SAID THAT JAPANESE LEADERS TOLD MR KANTOR THIS WEEK THAT JAPAN IS ADHERING TO ITS REFUSAL TO ACCEPT NUMERICAL TARGETS 9402040030 940204 BUSINESS BRIEF SCOTTS CO OFFICIALS EXPECT SHARP RISE IN EARNINGS FOR FISCAL 1994 SCOTTS CO OFFICIALS SAID THEY EXPECT SHARPLY HIGHER EARNINGS FOR THE FISCAL YEAR ENDING SEPT 30 BECAUSE OF RISING CONSUMER SPENDING ON HOMES AND YARDS AND A LARGE NUMBER OF NEW PRODUCTS OFFICIALS OF THE MARYSVILLE OHIO PRODUCER OF FERTILIZERS SOILS AND OTHER LAWN AND GARDEN PRODUCTS WERE UNWILLING TO GIVE SPECIFIC EARNINGS ESTIMATES BUT THEY DIDN'T QUARREL WITH ANALYST PROJECTIONS FOR A RISE IN PERSHARE EARNINGS OF MORE THAN 25 TO 135 A SHARE AND A SALES INCREASE OF WELL OVER 30 TO BETWEEN 625 MILLION AND 650 MILLION IN FISCAL 1993 SCOTTS HAD OPERATING PROFIT OF 21 MILLION OR 107 A SHARE ON SALES OF 466 MILLION AFTER AN EXTRAORDINARY CHARGE FOR ACCOUNTING CHANGES NET INCOME WAS 79 MILLION OR 40 CENTS A SHARE 9402040026 940204 BUSINESS BRIEF SAFECO CORP EARTHQUAKE CLAIMS TO FIRM SEEN TOPPING 50 MILLION SAFECO CORP SAID IT EXPECTS CLAIMS TO THE COMPANY FROM LAST MONTH'S EARTHQUAKE IN LOS ANGELES TO TOP 50 MILLION TRIGGERING ITS CATASTROPHEREINSURANCE COVERAGE SAFECO OF SEATTLE SAID THAT UNDER ITS REINSURANCE PROGRAM IT WILL BE REIMBURSED FOR 90 OF THE LOSSES BETWEEN 50 MILLION AND 200 MILLION TO DATE THE FIRE AND CASUALTY INSURANCE CONCERN SAID IT HAS HANDLED ABOUT 5500 EARTHQUAKERELATED CLAIMS 9402040025 940204 BUSINESS BRIEF LIMITED INC SPECIALTY RETAILER PUTS NET FOR THE YEAR AT 390 MILLION SPECIALTY RETAILER LIMITED INC COLUMBUS OHIO SAID IT EXPECTS NET INCOME FOR THE YEAR TO TOTAL ABOUT 390 MILLION OR 108 A SHARE A BIT LOWER THAN ITS PREVIOUS ESTIMATE OF 110 TO 120 A SHARE BASED ON NINEMONTH RESULTS THE LATEST ESTIMATE SUGGESTS FOURTHQUARTER EARNINGS OF AROUND 200 MILLION OR ABOUT 54 CENTS A SHARE IN THE YEAR ENDED JAN 30 1993 THE COMPANY HAD NET INCOME OF 4555 MILLION OR 125 A SHARE SALES FOR THE FOURWEEK PERIOD ENDED JAN 29 FELL 1 TO 3824 MILLION WHILE SALES FOR THE 12 MONTHS ROSE 8 TO 725 BILLION COMPARABLESTORE SALES FELL 9 FOR THE FOUR WEEKS AND 1 FOR THE YEAR LESLIE H WEXNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID 1993 RESULTS WERE SLIGHTLY BELOW THE EARLIER FORECAST DUE TO SEVERE JANUARY WEATHER AND THE LOS ANGELES EARTHQUAKE MR WEXNER SAID THE COMPANY REPURCHASED 53 MILLION OF ITS COMMON SHARES DURING THE FOURTH QUARTER THE LIMITED OPERATES 4623 SPECIALTY STORES AND DISTRIBUTES VICTORIA'S SECRET CATALOGUE 9402040024 940204 QVC TRIES TO WOO HOLDERS OF PARAMOUNT STOCK FALLS NEW YORK QVC NETWORK INC SHARES FELL YESTERDAY AS THE COMPANY TRIED TO RALLY SUPPORT FROM SHAREHOLDERS OF PARAMOUNT COMMUNICATIONS INC WHICH CONTINUES TO FAVOR RIVAL BIDDER VIACOM INC THE PARAMOUNT BOARD MEANWHILE IS EXPECTED TO ENDORSE VIACOM'S LATEST OFFER AT A MEETING LATER TODAY PARAMOUNT SHAREHOLDERS HAVE UNTIL FEB 14 TO DECIDE WHICH BID TO ACCEPT AND THE BIDDER THAT GETS 501 OF THE SHARES AT THAT POINT WINS THE CONTEST THE WINNER MUST THEN KEEP ITS OFFER OPEN ANOTHER TWO WEEKS TO ACCEPT OTHER SHARES QVC STOCK FELL 875 CENTS TO 45875 ON THE NASDAQ STOCK MARKET AND VIACOM CLASS B SHARES ROSE 50 CENTS TO 34 ON THE AMERICAN STOCK EXCHANGE SHARES OF PARAMOUNT ROSE 125 CENTS TO 78125 ON THE NEW YORK STOCK EXCHANGE BECAUSE QVC'S CASHANDSTOCK BID CONTAINS ROUGHLY 34 BILLION OF QVC STOCK CHIEF EXECUTIVE BARRY DILLER AND HIS ADVISERS HOPE TO BOOST THE DEMAND FOR QVC STOCK AMONG INSTITUTIONAL INVESTORS THEIR OBJECT IS TO PERSUADE TAKEOVERSTOCK TRADERS THAT QVC SHARES WOULDN'T DECLINE AS MUCH AS THEY THINK IF QVC SUCCEEDS IN ACQUIRING PARAMOUNT QVC PLANS TO PROMOTE MR DILLER AS A MANAGER OF ENTERTAINMENT ASSETS AND TO ATTACK VIACOM'S ALLEGED WEAKNESSES SUCH AS NEW COMPETITION IT FACES FOR ITS MTV MUSICVIDEO CABLE NETWORK VIACOM OFFICIALS SAY THEY AREN'T WORRIED ABOUT COMPETITIVE THREATS 9402040023 940204 POLITICS & POLICY RENO SEEKS TO SPEED UP RELEASE OF SOME DOCUMENTS WASHINGTON ATTORNEY GENERAL JANET RENO ISSUED PROCEDURES DESIGNED TO SPEED THE RELEASE OF DOCUMENTS IN CASES OF EXTRAORDINARY INTEREST TO THE NEWS MEDIA UNDER THE NEW PROCEDURES THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS MAY MOVE A FREEDOM OF INFORMATION ACT REQUEST AHEAD OF OTHERS IF THERE IS EXCEPTIONAL MEDIA INTEREST IN THE CASE AND IF THE INFORMATION CONCERNS QUESTIONS RELATING TO GOVERNMENTAL INTEGRITY THE JUSTICE DEPARTMENT SAID MS RENO AUTHORIZED AN EXEMPTION TO THE FIRSTIN FIRSTOUT PROCESSING AFTER ASKING WHY IT IS TAKING SO LONG TO PROCESS REQUESTS FOR REPORTS RELATING TO THE DEATH OF VINCENT FOSTER WHO WAS DEPUTY WHITE HOUSE COUNSEL AND PRESIDENT CLINTON'S PERSONAL LAWYER THOUGH THE FOSTER CASE LED TO THE NEW POLICY THOSE RECORDS MAY NOT BE IMMEDIATELY RELEASED UNDER IT SAID CARL STERN THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS BEFORE THE FOSTER DOCUMENTS ARE RELEASED THEY WILL HAVE TO BE REVIEWED BY INDEPENDENT COUNSEL ROBERT FISKE WHO IS INVESTIGATING MATTERS LINKED TO MR FOSTER'S DEATH MR STERN EXPLAINED THE EDITOR OF THE WALL STREET JOURNAL SUED THE JUSTICE DEPARTMENT LAST WEEK BECAUSE IT HASN'T PROVIDED DOCUMENTS REQUESTED IN AUGUST UNDER THE FOIA OR GIVEN A REASON WHY IT HAS NOT 9402040022 940204 LETTERS TO THE EDITOR INSURANCE IS THE CAUSE OF THE CRISIS WILLIAM KRISTOL HAS IT RIGHT THAT NOW IS THE TIME TO KILL THE CLINTON HEALTH PLAN OUTRIGHT RATHER THAN ATTEMPT TO PRESENT SOME MODIFIED VERSION BUT HE DOES NOT GO FAR ENOUGH IN THE RIGHT DIRECTION HOW TO OPPOSE THE HEALTH PLAN AND WHY EDITORIAL PAGE JAN 11 MR KRISTOL IS RIGHT WHEN HE SAYS THE PRESIDENT'S PLAN WOULD HAVE A SERIOUSLY DELETERIOUS EFFECT ON THE QUALITY OF MEDICAL CARE IS UNNECESSARY THAT THERE IS NO HEALTH CRISIS THAT THE PLAN WOULD GUARANTEE AN UNPRECEDENTED INTRUSION INTO THE ECONOMY AND WOULD SIGNAL A REBIRTH OF CENTRALIZED WELFARESTATE POLICY AT THE VERY MOMENT THAT THIS IS PERCEIVED AS A FAILURE AROUND THE WORLD WHERE HE GOES WRONG IS IN NOT TAKING THE NEXT STEP RECOGNIZING THAT THE PROBLEM IS ENTIRELY CAUSED BY THE INSURANCE SYSTEM ITSELF AND THAT NO TINKERING WITH IT WILL SOLVE THE PROBLEM FORTYTWO PERCENT OF CURRENT MEDICALCARE COST IS ADMINISTRATIVE OVERHEAD TO SHUFFLE INSURANCE PAPER AND INSURANCE IS RESPONSIBLE FOR ADDED COSTS THAT TOTAL AN INCREDIBLE 75 CENTS ON THE DOLLAR OF HEALTH COSTS BY TERMINATING MEDICAL INSURANCE PAYMENT FOR MEDICAL CARE THE FEDERAL LEGISLATION MR KRISTOL PROPOSES TO FIX THE SEVERAL PROBLEMS HE DISCERNS IN AMERICAN HEALTH CARE BECOME UNNECESSARY INCLUDING MAKING INSURANCE PORTABLE FROM JOB TO JOB ENDING LIMITS ON PREEXISTING CONDITIONS SIMPLIFYING HEALTHCARE PAPERWORK ETC THE PRESENT SYSTEM IS AKIN TO INSURING THE PATIENT'S OIL CHANGES WHEN IT SHOULD BE LIMITED TO HELPING HIM PAY FOR A MAJOR CAR ACCIDENT TO THAT END SUPERCATASTROPHIC MEDICAL INSURANCE PURCHASED BY THE INDIVIDUAL AND NOT BY THE EMPLOYER IS THE ONLY KIND THAT SHOULD BE IN PLACE AS SUGGESTED BY MILTON FRIEDMAN ABSENCE OF INSURANCE DEEPPOCKETS WOULD MAKE IT NECESSARY FOR DOCTORS AND HOSPITALS TO LOWER FEES AGAIN TO LEVELS PEOPLE COULD AFFORD AND WOULD HAVE THE SECONDARY BENEFIT OF RESTORING THE PHYSICIAN'S PROFESSIONAL IMAGE A MEDICAL SAVINGS ACCOUNT TAXDEDUCTIBLE FOR THE INDIVIDUAL WHICH IS NOT PRESENTLY THE CASE AND WHICH WOULD ACCUMULATE IF NOT SPENT AND ROLLED INTO THE PATIENT'S RETIREMENT PLAN WOULD ENCOURAGE THE PATIENT'S CLOSE MONITORING OF COST AND WOULD REPRESENT TRUE MANAGED CARE LOWERING EXPENSES DRASTICALLY THE RENEWAL OF THE OLDFASHIONED DOCTORPATIENT RELATIONSHIP WOULD PREVENT WASTE FRAUD AND ABUSE NOT THE CASE WITH THE PRESENT INTRUSION OF THE THIRDPARTY INSURANCE PAYER WHERE THERE IS INCENTIVE NEITHER TO PATIENT NOR DOCTOR TO CURB COSTS MALPRACTICE REFORM CERTAINLY AS HE SUGGESTS SHOULD BE INSTITUTED BUT IN ADDITION THE RENEWAL OF A CLOSE RELATIONSHIP BETWEEN DOCTOR AND PATIENT IN ITSELF WOULD HELP TO LOWER MALPRACTICE CLAIMS PEOPLE WILL BE EXPECTED TO SAVE FOR MEDICAL CARE AGAIN AS THEY DO FOR COLLEGE COSTS AND RETIREMENT AND THOSE WHO ARE NEGLIGENT WILL PAY A PRICE EVEN MEDICARE AND MEDICAID SHOULD BE REPLACED BY A WELFARE TYPE OF MEDICAL CARE FOR THOSE IN NEED FUNDED AS IN THE PAST IN PART BY DOCTORS' FREE MEDICAL CARE TO THE INDIGENT AND BY PUBLIC AND PRIVATE CHARITY FOR THOSE WHO HAVE NOT BEEN ABLE TO SAVE FOR MEDICAL CARE ONE MORE THING LITTLE NOTICED IN THE INSURANCE SYSTEM CONTROL OF MEDICINE HAS BEEN ITS OBLITERATION OF THE IDEAL OF EXCELLENCE THE TERM HEALTH CARE PROVIDER WAS INTRODUCED EARLY ON BY INSURANCE CARRIERS IN A CLEAR ATTEMPT TO DEPROFESSIONALIZE THE IMAGE OF THE DOCTOR WHAT THE TERM IMPLIES IS THAT ONE DOCTOR IS NO BETTER NOR WORSE THAN ANY OTHER DOCTOR AND THAT MOREOVER NOT ONLY ARE DOCTORS FUNGIBLE BUT THE NURSES PHYSICIAN ASSISTANTS OPTOMETRISTS SOCIAL WORKERS AND PSYCHOLOGISTS ETC ALL OF WHO ARE ALSO PROVIDERS ARE FUNGIBLE WITH DOCTORS AND WILL BE USED BY THE INSURANCE COMPANIES IN THE INTERESTS OF THEIR BOTTOM LINE 9402040021 940204 LEISURE & ARTS THE GALLERY MORE BODY THAN MIND BY DEBORAH SOLOMON IF ARTISTS WERE JUDGED BY THE SIZE OF THEIR EXHIBITIONS ROBERT MORRIS WOULD BE UP THERE WITH MICHELANGELO HE IS CURRENTLY OCCUPYING MORE GALLERY SPACE HERE THAN ANY OTHER ARTIST LIVING OR DEAD THE RETROSPECTIVE EXHIBITION OF HIS WORK OPENING TODAY AT THE SOLOMON R GUGGENHEIM MUSEUM IS A TWOVENUE AFFAIR SPILLING OVER FROM THE FIFTH AVENUE HEADQUARTERS TO THE MUSEUM'S BARNLIKE SOHO BRANCH ARGUABLY MR MORRIS EVEN DESERVES SUCH TREATMENT ALONG WITH DONALD JUDD AND CARL ANDRE HE WAS A FOUNDER OF MINIMALISM IN THE 1960S HIS THEORETICAL WRITINGS HAVE MADE HIM ONLY MORE CENTRAL TO THE MOVEMENT WHOSE LEAN UNDERSTATED WORKS ARE PRESUMED TO NEED A THICK USER'S MANUAL OR AT LEAST AN ACCOMPANYING TEXT TO ENSURE WE UNDERSTAND THEM ROBERT MORRIS THE MIND/BODY PROBLEM UP THROUGH APRIL 17 IS IN KEEPING WITH THIS SPIRIT OF PONTIFICATION YOU WALK IN AND ALREADY YOU'RE ON THE INTELLECTUAL DEFENSIVE WONDERING ABOUT THAT PHRASE MIND/BODY AND TRYING TO REMEMBER THE LECTURE ON DESCARTES FROM PHILOSOPHY 101 IS IT THAT THE MIND AND THE SENSES ARE DESTINED TO REMAIN SEPARATE FORGET IT THE EXHIBITION ORGANIZED BY THOMAS KRENS THE MUSEUM'S DIRECTOR AND ROSALIND KRAUSS A STAR OF THE ACADEMIC CIRCUIT ISN'T ABOUT CARTESIAN PHILOSOPHICAL TRADITIONS THE 170 OBJECTS ON VIEW WHICH RANGE FROM MINIMALIST SCULPTURES TO MAXIMALIST PAINTINGS TO VIDEO SCREENS FLASHING WITH FOOTAGE OF MR MORRIS IN THE BUFF OFTEN SEEM CLOSE TO ANOTHER COLLEGE EXPERIENCE REBELLION CULTIVATED FOR ITS OWN POINTLESS SAKE MUCH WAS SACRIFICED TO THIS GOAL AS I WAS REMINDED IN FRONT OF A PIECE CALLED STADIUM A REFABRICATION OF A 1967 SCULPTURE IN WHICH EIGHT MASSIVE WEDGES OF STEEL ARE ARRANGED LIKE PIE PIECES INTO A CIRCLE IN PREPARATION FOR THE SHOW'S OPENING A MUSEUM EMPLOYEE WITH A BLOND PONYTAIL WAS PAINTING THE SCULPTURE GRAY WITH THE HELP OF A ROLLER I ASKED HIM WHY HE WAS APPLYING FINISHING TOUCHES TO A WORK THAT WAS NOT HIS OWN HE POLITELY REPLIED THAT MR MORRIS ROUTINELY ENTRUSTED THE REFABRICATION OF HIS SCULPTURES TO OTHERS WE TREAT THE WORK LIKE ARCHITECTURE HE SAID WE PAINT IT THE WAY WE PAINT THE BATHROOMS HERE OR ANYTHING ELSE SUCH CAVALIER INDIFFERENCE TO CRAFT IS OF COURSE A HALLMARK OF MINIMALISM WHICH SOUGHT TO GET THE HAND OUT OF ART AND TO PUT THE BRAIN IN OR SO THE RHETORIC WENT LATELY THERE'S BEEN A REVIVAL OF INTEREST IN THE MOVEMENT AT A TIME WHEN SO MUCH CONTEMPORARY ART SCREAMS WITH CHARGES OF RACISM SEXISM AND OTHER FORMS OF VICTIMIZATION PERHAPS WE'RE NOSTALGIC FOR MINIMALISM'S MUTE SURFACES AND THE PRINCELY ALOOFNESS OF ITS CREATORS STILL THE MINIMALISM WE'RE SEEING ISN'T SO MINIMAL AFTER ALL THE ROBERT RYMAN SHOW AT THE MUSEUM OF MODERN ART IN THE FALL GAVE US AN ARTIST WHO HAS PAINTED EXCLUSIVELY IN WHITE FOR DECADES BUT WHO AT HIS BEST IS REALLY A CLOSET EXPRESSIONIST AND NOW HERE'S ROBERT MORRIS WHO HAS BEEN VERY CLEAR ABOUT WHAT HE CONSIDERS EXPENDABLE IN ART IN HIS 1966 ESSAY NOTES ON SCULPTURE HE OBSERVED THE SENSUOUS OBJECT RESPLENDENT WITH COMPRESSED INTERNAL RELATIONS HAS TO BE REJECTED THE IRONY IS IT'S PRECISELY AS A MAKER OF SENSUOUS OBJECTS THAT HE EXCELS TO BE SURE MR MORRIS BEGAN HIS CAREER WITH PLAIN AND SIMPLE OBJECTS MADE FROM LBEAMS AND IBEAMS AND WENT ON TO PRODUCE NEODADA ASSEMBLAGES THAT RELATE CLOSELY TO THE WORK OF JASPER JOHNS BUT IN SPITE OF HIS MINIMALIST EXHORTATIONS IT WASN'T UNTIL MR MORRIS DISAVOWED HIS OWN RHETORIC IN THE '70S THAT HIS ART REALLY FLOURISHED HIS CAREER SUGGESTS THAT IN REMOVING THE HAND FROM ART ARTISTS REMOVED TOO MUCH IF NOT EVERYTHING THAT MAKES ART INTERESTING MR MORRIS'S FELT PIECES LOOK GOOD AT THE GUGGENHEIM THE VERY WORD FELT HINTS PUNNINGLY AT A SWITCH IN ALLEGIANCES ON HIS PART A CONVERSION TO AN ART THAT IS FELT OR DISCOVERED RATHER THAN MERELY DEDUCED I PARTICULARLY LIKED UNTITLED SHOULDER OF 1973 IN WHICH A THREELAYERED BAND OF INDUSTRIAL FELT IS TACKED TO THE WALL ITS SIDES FOLDED DOWN LIKE ORIGAMI IT HAS A WEIRDLY HOVERING PRESENCE AND LOOKS LIKE A CROSS BETWEEN A MARK ROTHKO AND A BATHROBE A GOOD PORTION OF THE GUGGENHEIM SHOW IS DEVOTED TO MR MORRIS'S DRAWINGS WHICH SIMILARLY ABOUND WITH TACTILE EFFECTS A SERIES FROM THE '70S CALLED DRAWING BLINDFOLDED WAS EXECUTED AS DESCRIBED IN SPITE OF THIS OLD SURREALIST RUSE AND ALL IT IMPLIES ABOUT OPENNESS TO RISK THE DRAWINGS SUCCEED AS TRADITIONAL ABSTRACTIONS MAYBE HE PEEKED MADE BY SMUDGING GRAPHITE ON FIBERGLASS PAPER THEY'RE DENSE WITH BLACK FINGERPRINTS AND ALTERNATIVELY SUGGEST THE TREADS OF A TIRE FLYING BEES AND FLUFFY CUMULUS CLOUDS MORE RECENTLY MR MORRIS HAS TURNED TO THOUGHTS OF NUCLEAR HOLOCAUST AND GLOBAL DESTRUCTION YET HIS DRAWINGS REMAIN ENTIRELY ELEGANT LESS A REFLECTION OF VEHEMENT POLITICS THAN OF 18THCENTURY VENETIAN PAINTING A WORK SUCH AS UNTITLED FIRESTORM OF 1982 EXPLOITS THE BLACK MAGIC OF CHARCOAL FOR AIRY VAPOROUS EFFECTS AS IF A TIEPOLO HAD BEEN CAUGHT IN A FIRE AND EMERGED COVERED WITH SOOT FOR ME THE DRAWINGS WERE THE HIGH POINT OF THE SHOW THOUGH OTHERS I SUPPOSE WILL FAVOR THE INSTALLATION DOWNTOWN THERE MR MORRIS HAS ARRANGED NINE LARGESCALE MIRROR WORKS TO CREATE A FUN HOUSE OF OPTICAL TRICKS IN ONE UNTITLED PIECE FROM 1975 YOU PEER THROUGH A SUCCESSION OF STEEL FRAMES SUSPENDED FROM THE CEILING ONLY TO FIND THAT THE FACE REFLECTED IN THE MIRROR BEFORE YOU BELONGS TO SOMEBODY ELSE IN THE ROOM IT'S SUPPOSED TO BE DEEP A LESSON IN THE ARTIFICIALITY OF IMAGES BUT SEEING HEADS INSIDE ALL THOSE CUBES REMINDED ME OF NOTHING SO MUCH AS THE TV GAME SHOW HOLLYWOOD SQUARES SPEAKING OF PERFORMERS IT'S WORTH POINTING OUT THAT A PHOTO OF MR MORRIS APPEARS ON THE COVER OF THE CATALOG HE'S NUDE FROM HEAD TO TOE SMILING SMUGLY WICKEDLY EVEN AS HE EXPOSES HIS ANATOMY LIKE JOHN AND YOKO ON AN ALBUM COVER HIS BODY IS ENCASED INSIDE A CUTOUT OF THE LETTER I THE IMAGE IS FROM HIS IBOX 1962 AND IT'S MEANT TO HARK BACK TO THE CARTESIAN MINDBODY SCHISM THAT'S THE THEME OF THIS SHOW HOW CAN THE BODY CAUSE THE MIND TO HAVE SENSIBLE IDEAS THE QUESTION IS NEVER ANSWERED BY THIS EXHIBITION WHICH BRANCHES IN TOO MANY DIRECTIONS AT ONCE WHILE OFFERING UP PERSONALITY IN PLACE OF PROFUNDITY MR MORRIS MAY HAVE BROODED LONG AND HARD ON DESCARTES BUT THE ULTIMATE MESSAGE OF HIS WORK IS I THINK BUT NOT ENOUGH 9402040020 940204 CORRECTIONS & AMPLIFICATIONS ZENITH ELECTRONICS CORP SAID THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS JUST WITHDRAWN A SHAREHOLDER PROPOSAL SEEKING TO CREATE A LEAD INDEPENDENT DIRECTOR AT ZENITH AFTER GAINING ADDITIONAL INSIGHT ABOUT THE COMPANY'S GOVERNANCE HENCE ZENITH SAYS IT SHOULDN'T HAVE BEEN INCLUDED IN AN ARTICLE WEDNESDAY AS ONE OF THE COMPANIES TARGETED BY CALPERS FOR SPRING PROXY FIGHTS ABOUT CORPORATEGOVERNANCE ISSUES 9402040019 940204 UNITED TECHNOLOGIES' PRATT & WHITNEY WINS ORDER FOR JAPAN AIRLINES ENGINES UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY DIVISION CLAIMED A SIGNIFICANT VICTORY AS IT BEAT OUT MAJOR RIVALS FOR JAPAN AIRLINES AIRCRAFTENGINE ORDERS WITH A POTENTIAL VALUE OF 450 MILLION PRATT & WHITNEY SAID THE JAPANESE CARRIER SELECTED ITS HIGHTHRUST PW4000 OVER ENGINES MADE BY GENERAL ELECTRIC CO AND BY ROLLSROYCE PLC THE SALE MEANS THAT PRATT & WHITNEY WHICH FELL OUT OF FAVOR WITH JAPANESE AIRLINES BACK IN THE LATE 1980S NOW WOULD BE AN ENGINE SUPPLIER TO ALL THREE MAJOR JAPANESE AIRLINES KARL KRAPEK PRESIDENT OF PRATT & WHITNEY CONTENDED THAT THE SALE GIVES THE EAST HARTFORD CONN JETENGINE MAKER A 51 SHARE OF THE HOTLY CONTESTED MARKET FOR A NEW GENERATION OF ENGINES TO POWER LONGRANGE WIDEBODIED AIRCRAFT GE'S GE90 AND ROLLSROYCE'S TRENT 800 ENGINES ARE THE MAIN COMPETITORS GE AND ROLLSROYCE COULDN'T BE REACHED FOR COMMENT UNLIKE THE ALLNEW GE AND ROLLSROYCE ENGINES PRATT & WHITNEY'S ENGINE IS DERIVED FROM ITS OLDER FAMILY OF ENGINES PW4000 INTRODUCED IN 1987 MR KRAPEK SAID THE NEW HIGHTHRUST VERSION AND THE OLDER ENGINE HAVE 85 OF THEIR PARTS IN COMMON WE THINK OUR DERIVATIVE APPROACH IS FAVORED BY JAPAN AS THE LEASTRISK APPROACH HE SAID ADDING THAT THE OLDER ENGINE WILL HAVE ABOUT 10 MILLION HOURS OF FLYING TIME WHEN JAPAN AIRLINES PUTS THE NEW HIGHTHRUST VERSION ON ITS NEW FLEET OF BOEING 777 PLANES PRATT & WHITNEY WAS THE SOLE ENGINE SUPPLIER FOR A LONG TIME TO JAPAN AIRLINES THEN IN 1987 THE AIRLINER PICKED GE OVER PRATT & WHITNEY TO POWER A FOURENGINE WIDEBODIED PLANE JAPAN AIRLINES WAS VERY CRITICAL OF OUR TECHNICAL SUPPORT AND DELAYS IN DELIVERING PARTS A SPOKESMAN SAID PRATT & WHITNEY RETURNED HOWEVER IN 1989 BY WINNING ORDERS FOR ENGINES TO POWER JAPAN AIRLINES' THREEENGINE LONGRANGE PLANES THE LATEST CONTRACT INCLUDES FIRM ORDERS VALUED AT 240 MILLION FOR 20 INSTALLED ENGINES AND FOUR SPARES AND OPTIONS FOR ANOTHER 20 ENGINES FOR AN ESTIMATED 210 MILLION PRATT & WHITNEY SAID DELIVERIES WILL BEGIN IN 1995 AND RUN THROUGH 1999 UNITED TECHNOLOGIES IS BASED IN HARTFORD CONN 9402040018 940204 INTERNATIONAL JAPAN'S LEADERS SCRAP PROPOSAL TO LOWER TAXES MOVE AVERTS COALITION RIFT BUT FINANCE MINISTRY PLANS A SECOND ATTEMPT BY MICHAEL WILLIAMS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN KEEPS GETTING HARDER TO GOVERN THE GOVERNMENT FRIDAY MORNING SHELVED CONTROVERSIAL PLANS FOR A TAX CUT AFTER A DISPUTE THREATENED TO TEAR APART THE RULING COALITION WE HAVE DECIDED TO GO BACK TO THE DRAWING BOARD SAID ICHIRO OZAWA A KEY COALITION LEADER BUT FINANCE MINISTRY OFFICIALS WERE CONFIDENT THAT A PACKAGE INCLUDING TAX CUTS WILL BE WORKED OUT BEFORE PRIME MINISTER MORIHIRO HOSOKAWA MEETS PRESIDENT CLINTON AT THEIR WASHINGTON SUMMIT NEXT FRIDAY THE DISCUSSION HAS RETURNED TO SQUARE ONE BUT IT DOESN'T MEAN THERE WON'T BE A TAX REDUCTION SAID ONE MINISTRY OFFICIAL THE FRACAS REFLECTS THE POLITICAL MAYHEM THAT HAS STALLED ECONOMIC PLANNING FOR MONTHS AS MR HOSOKAWA AND HIS RULING COALITION HAVE BEEN CAUGHT IN A TUGOFWAR OVER A CRITICAL ECONOMICSTIMULUS PACKAGE MOST RECENT BATTLES HAVE BEEN LIMITED TO JAPAN'S POLITICAL WORLD THE FINANCE BATTLE HAS ENGULFED THE MIGHTY BUREAUCRACY WHICH TRIED TO TAKE ADVANTAGE OF THE POLITICAL INSTABILITY TO PUSH ITS OWN AGENDA BUT QUICKLY GOT CAUGHT IN THE CROSSFIRE TAX POLICY IS AT THE HEART OF THE DISPUTE THE LATEST STRUGGLE BEGAN EARLY THURSDAY WHEN MR HOSOKAWA PROPOSED CUTTING INCOME TAXES AND OTHER LEVIES BY SIX TRILLION YEN 55 BILLION THE CENTERPIECE OF HIS PLAN TO SPUR BUSINESS ACTIVITY TO OFFSET THE REVENUE LOSS AND TO APPEASE THE FISCAL CONSERVATIVES AT THE MINISTRY OF FINANCE HE SAID THE GOVERNMENT WOULD REPLACE THE NATION'S 3 SALES TAX IN 1997 WITH A 7 NATIONAL WELFARE TAX A EUPHEMISM FOR A EUROPEANSTYLE VALUEADDED TAX THE ANNOUNCEMENT TOUCHED OFF ONE OF THE MOST HECTIC DAYS IN MR HOSOKAWA'S STORMY SIXMONTH REIGN THE SOCIALISTS THE LARGEST BLOC IN HIS GOVERNMENT AND LONGTIME OPPONENTS OF SALES LEVIES PROMPTLY THREATENED TO LEAVE THE COALITION EVEN MEMBERS OF MR HOSOKAWA'S OWN PARTY WHO SUPPORT THE PLAN IN BROAD OUTLINE ACCUSED HIM OF HATCHING THE PROGRAM IN BACKROOM BARGAINING I CAN'T UNDERSTAND WHY MR HOSOKAWA TOOK A POLICY LINE TOTALLY DICTATED BY THE FINANCE MINISTRY SAID SHUN OHIDE A SENIOR SOCIALIST LEGISLATOR THIS SQUALL IS PARTICULARLY UNNERVING FOR THE US GOVERNMENT WHICH IS URGENTLY DEMANDING PROGRESS IN STALLED TRADE TALKS BEFORE THE PLANNED SUMMIT BETWEEN MR HOSOKAWA AND PRESIDENT CLINTON WITH JUST OVER A WEEK TO GO US TRADE REPRESENTATIVE MICKEY KANTOR IS NOW IN TOKYO TRYING TO FORCE MR HOSOKAWA AND OTHER TOP POLITICIANS TO FOCUS ON THE NEGOTIATIONS MR KANTOR REFUSED TO MAKE ANY PUBLIC ASSESSMENT OF HIS MEETINGS BUT DID TELL REPORTERS THAT HE HAD A VERY GOOD SESSION THURSDAY WITH MR HOSOKAWA WHILE FORCING SOME DELAYS THE TAXPOLICY DISPUTE PROBABLY WON'T DERAIL MR HOSOKAWA'S ECONOMICSTIMULUS PACKAGE JAPAN'S LEADERS ARE UNDER INTENSE PRESSURE FROM BUSINESS EXECUTIVES AND THE CLINTON ADMINISTRATION TO SPUR DOMESTIC DEMAND AND IMPORTS AND EVEN IF THE SOCIALISTS DO ABANDON MR HOSOKAWA MOST ANALYSTS THINK HE COULD SURVIVE FOR A WHILE AS THE HEAD OF A GOVERNMENT WITH A PARLIAMENTARY MINORITY BUT HOWEVER THE TAX TUSSLE ENDS IT HIGHLIGHTS THE DISTURBING INSTABILITIES OF THE NEW ERA OF COALITION RULE WHILE MR HOSOKAWA'S SALESTAX DECISION MAY HAVE PLEASED JAPAN'S ELITE BUREAUCRATS IT RISKS UNDERMINING HIS CONSIDERABLE POPULARITY AFTER HIS TAX ANNOUNCEMENT THE PRIME MINISTER TOOK HIS WORST PUBLIC TONGUELASHING SINCE TAKING POWER THE ASAHI SHIMBUN NEWSPAPER RAN A FRONTPAGE ARTICLE BLASTING HIS TAX MOVE AS ABRUPT AND UNCONVINCING OVER THE LONGER TERM THE NEW ERA OF MULTIPARTY RULE EXPOSES FINANCE POLICY TO GREATER PUBLIC DEBATE ENDANGERING THE BUREAUCRATS' CONTROL OF THE AGENDA THERE ARE SOME PEOPLE WHO WANT TO GET SOCIALSECURITY COVERAGE WITHOUT PAYING THE BURDEN SAID RYUTARO HASHIMOTO A FORMER LIBERAL DEMOCRAT FINANCE MINISTER IN AN INTERVIEW LAST MONTH ECONOMIC MEASURES WILL BECOME AN ISSUE MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9402040017 940204 NISSAN OFFERS TO BUY BACK 198790 VANS BECAUSE OF CONCERNS OVER ENGINE FIRES BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NISSAN MOTOR CO IN AN UNPRECEDENTED MOVE SAID IT WILL BUY BACK ALL THE ESTIMATED 33000 NISSAN VANS IT SOLD FROM 1987 TO 1990 BECAUSE OF POTENTIAL ENGINE FIRES THE PROGRAM COULD COST NISSAN AS MUCH AS 180 MILLION ACCORDING TO INDUSTRY OFFICIALS THE MOVE COMES FIVE MONTHS AFTER NISSAN LAUNCHED ITS FOURTH RECALL OF THE NISSAN VAN CODENAMED C22 THE JAPANESE AUTO MAKER HAS ALREADY REPURCHASED 1350 VANS THAT WERE TOO EXPENSIVE TO REPAIR AND HAD THEM DESTROYED NISSAN SAID IT IS OFFERING TO BUY BACK THE VANS TO KEEP ITS CUSTOMERS SATISFIED WE CAN'T RUN AWAY FROM AN ISSUE JUST BECAUSE WE THINK IT'S A FINANCIAL HARDSHIP SAID EARL HESTERBERG VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S NISSAN DIVISION BRAND IMAGE IS VERY IMPORTANT WE BELIEVE THAT SHOULD STAND BEHIND THE PRODUCT BUT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION MADE CLEAR THAT IT EXPECTED SOME MORE AGGRESSIVE ACTION SAID BILL BOEHLY THE NHTSA'S ASSOCIATE ADMINISTRATOR HE SAID HE IS PLEASED WITH THE BUYBACK PLAN AND URGED VAN OWNERS TO ACCEPT THE OFFER NISSAN OFFICIALS DECLINED TO COMMENT ABOUT HOW MUCH THE COMPANY WILL PAY BUT INDUSTRY EXPERTS EXPECT NISSAN TO PAY AN AVERAGE OF 6000 A VEHICLE DEPENDING ON ITS CONDITION NISSAN SAID IT ALSO SETTLED A CLASSACTION SUIT FILED BY NISSAN VAN OWNERS WHO HAD SOUGHT TO FORCE THE COMPANY TO REFUND THE FULL RETAIL PRICE OF THE VEHICLES AS PART OF THE SETTLEMENT OWNERS OF THE 198790 VANS WILL ALSO RECEIVE A 500 COUPON TOWARD THE PURCHASE OF ANOTHER NISSAN VEHICLE THE COUPON WHICH EXPIRES AT THE END OF THE YEAR COULD COST NISSAN AN ADDITIONAL 15 MILLION IF EVERY NISSAN VAN OWNER CASHED IN THE PROBLEM WITH THE VANS ORIGINATES WITH THE FAN BELT WHICH IF IT BREAKS COULD CAUSE THE MINIVAN TO OVERHEAT POSSIBLY RESULTING IN FIRES IN THE ENGINE COMPARTMENT NISSAN WILL NOTIFY OWNERS OF THE 198790 MODELYEAR VANS OF THE REFUND OFFER WHICH EXPIRES 120 DAYS AFTER RECEIPT OF THE LETTER OWNERS ACCEPTING THE OFFER WILL RECEIVE A CHECK FOR THE CURRENT RETAIL VALUE OF THE NISSAN VAN BUT NISSAN'S LONGRUNNING TROUBLES WITH THE VANS MAY NOT BE OVER YESTERDAY FOUR SURVIVING CHILDREN OF AN ORLANDO COUPLE THAT DIED IN A 1988 NISSAN VAN FILED A SUIT AGAINST NISSAN IN ORANGE COUNTY CIRCUIT COURT IN FLORIDA CLAIMING THAT DEFECTS CAUSED THE CRASH THAT RESULTED IN THEIR PARENTS' DEATH EARL AND GEORGIA F ADAMS WERE KILLED DEC 10 WHEN THEIR 1988 NISSAN VAN VEERED OFF THE ROAD CRASHED INTO A TRACTORTRAILER AND EXPLODED JOHN OVERCHUCK AN ATTORNEY REPRESENTING THE CHILDREN SAID THE SUIT SEEKS MORE THAN 15000 IN DAMAGES IN CARSON CALIF A NISSAN SPOKESMAN SAID THE SUIT IS WITHOUT MERIT WE HAVE INVESTIGATED THE ACCIDENT AND IT HAS NOTHING TO DO WITH THE RECALL CONDITION THE NISSAN SPOKESMAN SAID IT IS A CAR CRASH AS FOR THE BUYBACK SEAN KANE SENIOR ASSOCIATE AT FOR RALPH HOAR & ASSOCIATES AN ARLINGTON VA RESEARCH FIRM CALLED IT TOO LITTLE TOO LATE HIS ORGANIZATION HAD PETITIONED THE NHTSA LAST YEAR TO ORDER NISSAN TO REPURCHASE ALL THE VANS THE NHTSA HAD DENIED THAT PETITION AFTER NISSAN AGREED TO CONDUCT THE FOURTH RECALL LAST AUGUST THERE HAVE BEEN SOME 160 REPORTS OF FIRES IN THE VANS NISSAN SAID ALTHOUGH NOT ALL OF THEM WERE CAUSED BY ENGINECOMPARTMENT PROBLEMS THE NISSAN SPOKESMAN SAID THERE HAVE BEEN NO SERIOUS INJURIES OR FATALITIES RELATED TO PRODUCT DEFECTS THE REPAIRS MADE IN THE RECALLS NEVER RESOLVED THE PROBLEM NISSAN IS ON THE COMEBACK TRAIL WITH A HOTSELLING MINIVAN AND MIDSIZED SEDAN AND SAW THE RECURRING RECALLS AS A STAIN ON ITS IMAGE THE BUYBACK DOESN'T INCLUDE NISSAN'S CURRENT QUEST MINIVAN BUT COVERS AN EARLIER MINIVAN THAT NISSAN STOPPED BUILDING IN 1990 NISSAN DEALERS ARE HOPEFUL THAT THIS ACTION WILL CLOSE THE BOOK ON THIS RECALL DEBACLE THIS VAN WAS A PROBLEM CHILD TO START WITH SAID JOHN BALDWIN NEWCAR MANAGER AT GREEN GIFFORD MOTOR NORFOLK VA NISSAN HAS GONE THE EXTRA MILE TO SOOTH THOSE NERVES BUT IT'S BEEN A COMEDY OF ERRORS 9402040016 940204 GE SEES ASIA PLACING MORE THAN 45 OF GLOBAL ORDERS FOR POWER EQUIPMENT BY EDUARDO LACHICA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ASIA'S INSATIABLE DEMAND FOR ELECTRICITY WILL SPUR THE REGION TO PLACE MORE THAN 45 OF ALL GLOBAL ORDERS FOR POWERGENERATION EQUIPMENT OVER THE NEXT 10 YEARS ACCORDING TO A GENERAL ELECTRIC CO FORECAST INDUSTRIALIZATION RURAL ELECTRIFICATION AND SIMPLY THE CONSUMERISM OF A GROWING MIDDLE CLASS ARE AMONG THE REASONS WHY ASIA IS RIGHT NOW THE WORLD'S HOTTEST MARKET FOR SUCH EQUIPMENT SAID DELBERT WILLIAMSON PRESIDENT OF GE'S ASIAN INDUSTRIAL AND POWERSYSTEMS UNIT HE PREDICTED THAT THE REGION WILL ORDER MORE THAN 460 GIGAWATTS OF ELECTRIC POWER IN 10 YEARS OR MORE THAN WHAT THE US CANADA AND MANY OTHER WESTERN COUNTRIES COMBINED WILL PUT ON ORDER MR WILLIAMSON PRESENTED HIS FORECAST AT A WASHINGTON CONFERENCE EARLIER THIS WEEK ON POWER REQUIREMENTS IN THE ASIANPACIFIC REGION HE SAID THE FORECAST IS BASED ON GE'S ANALYSIS OF VARIOUS NATIONAL AND REGIONAL ENERGY PLANS FUEL AVAILABILITY AND PRICE PROJECTIONS AND OTHER FACTORS GAS AND STEAM TURBINES NUCLEAR REACTORS AND COGENERATION PLANTS ARE AMONG THE KINDS OF EQUIPMENT THAT GE REFERS TO GE IS ESSENTIALLY FORECASTING A CONTINUATION OF AN ALREADY EVIDENT BUYING TREND THE REGION ORDERED 172 GIGAWATTS OF POWER IN THE FIVEYEAR PERIOD BETWEEN 1988 TO 1992 IN THE NEXT FIVE YEARS ASIA WILL ORDER 222 GIGAWATTS MORE AND ANOTHER 238 GIGAWATTS IN 19982002 THE FORECAST SAYS A GIGAWATT IS A THOUSAND MEGAWATTS BY WAY OF COMPARISON A 1900 MEGAWATT PLANT CAN GENERATE ENOUGH POWER TO SUPPLY THE NEEDS OF DETROIT OR ANY OTHER MODERN CITY WITH A POPULATION OF 13 MILLION TWO DEVELOPING COUNTRIES CHINA AND INDIA WILL ACCOUNT FOR JUST ABOUT HALF OF THOSE REGIONAL ORDERS THE HONG KONGBASED GE UNIT SAID UNQUESTIONABLY THE BIGGEST OPPORTUNITY IS CHINA WHICH ALONE WILL ACCOUNT FOR MORE THAN 170 GIGAWATTS OF NEW ORDERS AS THEIR ECONOMY GROWS BY LEAPS AND BOUNDS OVER THE COURSE OF THE NEXT 10 YEARS MR WILLIAMSON SAID WHILE CHINA CAN EVENTUALLY SUPPLY SOME OF ITS OWN EQUIPMENT IT WILL HAVE TO DEPEND ON IMPORTED TECHNOLOGY IN THE SHORT TERM GE EXPECTS CHINA TO SEEK FOREIGN SUPPLIERS FOR AS MUCH AS THREE TO FIVE GIGAWATTS OF NEW CAPACITY EACH YEAR BEIJING IS GIVING THE PROVINCES MORE AUTHORITY TO PLAN FOR AND BUILD NEW POWER CAPACITY BUT FINANCING IS STILL A MAJOR HITCH MR WILLIAMSON SAID FOR EXAMPLE GUANGDONG WILL NEED BILLIONS OF DOLLARS TO COVER THE NEXT FIVE POWER PROJECTS AND MUST OBTAIN EXPORT CREDITS TO COVER THIS AMOUNT HE SAID MUCH OF THIS CREDIT HAS TO COME FROM NONCHINESE INSTITUTIONS HE ADDED INDIA CAN ORDER AS MUCH AS 60 GIGAWATTS OF POWER OVER THE SAME PERIOD TO COPE WITH A STILLGROWING POPULATION AND SERIOUS POWER SHORTFALLS THE GE UNIT SAID FINANCING IS ALSO A PROBLEM BUT GE IS ENCOURAGED BY NEW DELHI'S LATEST MOVES TO INVITE FOREIGN INVESTORS AND INDEPENDENT POWER PRODUCERS INTO THE COUNTRY GE REGARDS JAPAN SOUTH KOREA AND TAIWAN AS MATURING POWEREQUIPMENT MARKETS BUT IT STILL EXPECTS AS MUCH AS 75 GIGAWATTS OF NEW JAPANESE ORDERS IN THE NEXT 10 YEARS SOME ORDERS WILL BE FOR NUCLEAR POWER AND COMBINEDCYCLE PLANTS WHICH GENERATE ADDITIONAL POWER BY USING EXHAUST GASES TO DRIVE A GENERATOR GE EXPECTS INDONESIA'S POWER DEMAND TO INCREASE BY 15 A YEAR OR MORE THAN TWICE ITS ECONOMICGROWTH RATE PRIVATE POWER AGAIN MAY BE THE WINNING FORMULA MR WILLIAMSON SAID JAKARTA IS PUSHING THE PRIVATE SECTOR TO SUPPLY 40 TO 50 OF THE COUNTRY'S ADDITIONAL NEEDS HE ADDED GE DOESN'T PROVIDE ESTIMATES OF THE VALUE OF THESE ASIAN ORDERS BUT ANOTHER FIRM GAS VENTURES ADVISORS INC EXPECTS CHINA ALONE TO SPEND 227 BILLION FOR POWER PROJECTS OVER THE 19922000 PERIOD GAS VENTURES ALSO PROJECTS 126 BILLION IN EXPENDITURES FOR INDIA OVER THE SAME PERIOD THE FIRM IN BOSTON PRESENTED THESE ESTIMATES AT THE WASHINGTON CONFERENCE GE'S INDUSTRIAL AND POWER SYSTEMS DIVISION IS ITSELF A MAJOR SUPPLIER OF THIS EQUIPMENT IT COMPETES IN THE ASIAN MARKET WITH A NUMBER OF JAPANESE AND EUROPEAN SUPPLIERS 9402040015 940203 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 9402040014 940204 WHO'S NEWS MAGAININ PHARMACEUTICALS INC MAGAININ PHARMACEUTICALS INC PLYMOUTH MEETING PA BERNARD CANAVAN 58 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY INCREASING BOARD MEMBERSHIP TO EIGHT DR CANAVAN RECENTLY RETIRED AS PRESIDENT OF AMERICAN HOME PRODUCTS CORP 9402040012 940204 SEGA AND MATSUSHITA'S MCA TO BUILD ENTERTAINMENT COMPLEX AT UNIVERSAL BY WALL STREET JOURNAL REPORTERS DAVID P HAMILTON IN TOKYO AND RICHARD TURNER IN LOS ANGELES SEGA ENTERPRISES LTD AND MCA INC ARE PLANNING TO BUILD A NEW ENTERTAINMENT ATTRACTION AS PART OF MCA'S UNIVERSAL STUDIOS HOLLYWOOD COMPLEX IN SOUTHERN CALIFORNIA ACCORDING TO INDIVIDUALS CLOSE TO THE SITUATION THE TWO COMPANIES HAVE COMMISSIONED ARCHITECTS AND DESIGNERS TO BUILD AN ATTRACTION THAT WILL COMBINE SEGA'S EXPERTISE IN HIGHTECH ARCADE GAMES WITH MCA'S MOVIE AND TELEVISION THEMES PEOPLE FAMILIAR WITH THE PLAN SAY CONSTRUCTION COULD BEGIN AS EARLY AS THIS YEAR IN UNIVERSAL CITY CALIF WHERE MCA OPERATES A THEME PARK AN 18SCREEN MOVIE THEATER A MUSIC AMPHITHEATER AND A RETAIL COMPLEX CALLED CITYWALK THE COST OF THE NEW COMPLEX WAS SAID TO BE PERHAPS 20 MILLION THE PARTNERSHIP IS SEGA'S MOST SERIOUS ATTEMPT YET TO MOVE UP FROM ITS LUCRATIVE VIDEOARCADE BUSINESS INTO THE COMPETITIVE US MARKET FOR LARGER ENTERTAINMENT ATTRACTIONS WHILE THE TOKYOBASED VIDEOGAME MAKER HAS TALKED ABOUT COMPETING WITH THE WALT DISNEY CO DISNEY HAS LOOKED AT SUCH MIDSIZED COMPLEXES AND HAS SO FAR DECIDED THEY DON'T MAKE MUCH ECONOMIC SENSE AT THE SAME TIME THE SEGAMCA ALLIANCE HIGHLIGHTS THE POTENTIAL CONFLICTS EMERGING AS HARDWARE SOFTWARE AND ENTERTAINMENT COMPANIES COME TOGETHER TO CREATE NEW FORMS OF INTERACTIVE MULTIMEDIA ENTERTAINMENT MCA'S PARENT OSAKABASED CONSUMERELECTRONICS GIANT MATSUSHITA ELECTRIC INDUSTRIAL CO COMPETES AGAINST SEGA IN THE HOME VIDEOGAME MARKET THROUGH ITS TIEUP WITH 3DO CO SEGA MCA AND MATSUSHITA ALL DECLINED COMMENT ON THE NEW PROJECT SEGA WHICH DERIVES NEARLY HALF ITS REVENUE FROM ARCADE OPERATIONS AND SALES OF ARCADE GAMES OPERATES A STRING OF UPSCALE VIDEO ARCADES IN JAPAN AND HAS RECENTLY STARTED EXPORTING THE CONCEPT TO THE US TO SEGA HOWEVER THAT BUSINESS MERELY LAID THE GROUNDWORK FOR SOCALLED HIGHTECH THEME PARKS THAT BLEND AMUSEMENTPARK RIDES WITH VIRTUALREALITY VIDEOGAME TECHNOLOGY SEGA PLANS TO OPEN A PROTOTYPE HIGHTECH PARK IN OSAKA IN MARCH WITH A FULLBLOWN VERSION PARK TO FOLLOW IN YOKOHAMA IN JULY USING THE UNIVERSAL CITY CALIF SITE AS A SHOWCASE SEGA AND MCA INTEND TO BUILD A PROTOTYPE OF AN ATTRACTION THAT BLENDS THE COMPANIES' DIFFERENT APPROACHES TO ENTERTAINMENT UNLIKE SEGA'S PLANNED HIGHTECH PARKS IN JAPAN THE NEW COMPLEX LIKELY WILL INCLUDE NOT JUST EIGHTPLAYER FLIGHT SIMULATION AND RACECAR GAMES AND OTHER VIRTUALREALITY ATTRACTIONS BUT GAMES AND RIDES EMPLOYING MCA'S MOVIEMAKING EXPERTISE AND PERHAPS EVEN THEMES CULLED FROM ITS MOVIES AND TELEVISION SHOWS MCA'S UNIVERSAL PICTURES UNIT PRODUCED JURASSIC PARK ET THE EXTRATERRESTRIAL AND THE BACK TO THE FUTURE SERIES THE COST OF THE 30000SQUAREFOOT TO 50000SQUAREFOOT COMPLEX WOULD BE WELL BELOW THE BILLIONS SPENT BY MCA AND DISNEY FOR GIANT THEME PARKS BUT CONSIDERABLY MORE THAN THE ESTIMATED 55 MILLION SPENT TO BUILD VIRTUALAND SEGA'S SOUPEDUP ARCADE FOR THE NEW LUXOR RESORT IN LAS VEGAS IT'S ALSO MUCH LESS THAN THE SEVEN BILLION YEN ROUGHLY 65 MILLION SEGA ESTIMATES ITS YOKOHAMA HIGHTECH PARK WILL COST DISCUSSIONS TOOK PLACE BETWEEN SEGA PRESIDENT HAYAO NAKAYAMA AND MCA EXECUTIVE VICE PRESIDENT SKIP PAUL THE HEAD OF MCA'S INTERACTIVEMULTIMEDIA EFFORT AT LAST MONTH'S CONSUMER ELECTRONICS SHOW IN LAS VEGAS SAY INDIVIDUALS THE SEGAMATSUSHITA COMPETITION ISN'T THOUGHT TO BE A PROBLEM THESE PEOPLE SAY THE NEW COMPLEX IS AN MCA PROJECT AND LOCATIONBASED ENTERTAINMENT ISN'T RELATED TO THE LIVINGROOM WARS BETWEEN SEGA MATSUSHITA AND NINTENDO CO 9402040011 940204 MARKETING BY LAURA BIRD MORE MARKET RESEARCHERS ARE GETTING WIRED ON COMPUTER NETWORKS AND FINDING THAT FOCUS GROUPS IN CYBERSPACE ARE FASTER AND CHEAPER THAN THE OLDFASHIONED KIND THE LATEST AND POTENTIALLY BIGGEST VENTURE INVOLVES BKG AMERICA A NEW YORK RESEARCH FIRM SPECIALIZING IN CHILDREN TEENS AND GENERATION X IT HAS AN EXCLUSIVE AGREEMENT WITH AMERICA ONLINE TO CONDUCT ELECTRONIC RESEARCH WITH FIVE TO 29YEAROLDS BKG WILL COLLECT DATA VIA BROAD SURVEYS AND INDEPTH ELECTRONIC CHAT SESSIONS AND SELL THE FINDINGS TO CORPORATE AND AD AGENCY CLIENTS THE SERVICE AMERICAN DIALOGUE BEGINS THIS MONTH WITH BKG ELECTRONICALLY PROBING 600 HOUSEHOLDS WITH FIVE TO 12YEAROLDS MARIAN SALZMAN BKG AMERICA PRESIDENT SAYS MARKETERS WANT REALTIME FEEDBACK PARTICULARLY FROM THE 20 TO 29YEAROLDS WHO MAKE UP GENERATION X OTHER COMPANIES ARE DOING CONSUMER RESEARCH ON LINE VIACOM'S NICKELODEON NETWORK ESTABLISHED ITS OWN PRIVATE FORUM OF EIGHTTO12YEAROLDS LAST YEAR ON THE COMPUSERVE NETWORK A UNIT OF H & R BLOCK PRODIGY SERVICES A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES AND SEARS ROEBUCK MARKETS A FOCUSGROUP PACKAGE TO COMPANIES AND COUNTS THE THREE MAJOR TELEVISION NETWORKS AMONG ITS USERS BKG PLANS TO WIRE UP 5000 TO 10000 CHILDREN AND YOUNG ADULTS BY OFFERING THEM FREE AMERICA ONLINE SOFTWARE ELECTRONIC PARTICIPANTS ALSO GET 35 TO 50 PER SESSIONTHE AMOUNT PAID TO MEMBERS OF TRADITIONAL FOCUS GROUPS ELECTRONIC RESEARCH IS CHEAPER THAN GATHERING DATA FACE TO FACE MS SALZMAN SAYS A TYPICAL INPERSON FOCUS GROUP COSTS 4000 SHE ESTIMATES ELECTRONICALLY IT COULD BE DONE FOR 1500 AND ALTHOUGH ELECTRONIC RESEARCH DOESN'T YET ALLOW VISUAL OBSERVATION MS SALZMAN SAYS THAT ISN'T A PROBLEM THE DEGREE OF INTIMACY IN THIS MEDIUM MAKES UP FOR WHAT YOU'RE LOSING SHE SAYS CONSUMER EXPERTS ARE INTRIGUED BY THE IDEA BUT CAUTION THAT IT WON'T REPLACE TRADITIONAL FOCUS GROUPS YET BARBARA FEIGIN EXECUTIVE VICE PRESIDENT AT GREY ADVERTISING NOTES ONLINE USERS ARE A TINY SLIVER OF THE POPULATION USERS MOSTLY UPSCALE HIGHLY EDUCATED MEN ARE A FINE SUBJECT FOR RESEARCH ABOUT HIGHTECH PRODUCTS SHE SAYS BUT NOT MASSMARKET ITEMS THEY AREN'T THE TRUE TARGET SHE SAYS THEY'RE NOT THE ONES WHO ARE GOING TO BUY IT THE PHILADELPHIA PROPERTY MANAGEMENT FIRM OF RUBIN STROUSE REALTY IS TRYING TO ADAPT CONSUMER MARKETING TACTICS TO THE COMMERCIAL REALESTATE BUSINESS THE OFFICE AND INDUSTRIAL DIVISION OF RUBIN ORGANIZATION IS HOPING TO ATTRACT NEW TENANTS AND KEEP EXISTING ONES WITH THE RUBINEDGE A PACKAGE OF PERKS AND DISCOUNTS TO MAKE COMMERCIAL TENANTS FEEL GOOD ABOUT THEIR LANDLORD RUBIN STROUSE'S OFFICE TENANTS RECEIVE A PERSONALIZED IDENTIFICATION CARD ENTITLING THEM TO SMALL AMENITIES IN THE LOBBIES OF RUBIN PROPERTIES SUCH AS FREE UMBRELLA LOANS ON RAINY DAYS OR DOUGHNUTS AND COFFEE ON COLD MORNINGS LOCAL RETAILERS AND RESTAURANTS OFFER CARDHOLDERS DISCOUNTS THE COMPANY ALSO PRODUCES NEWSLETTERS FOR THE TENANTS IN ITS COMMERCIAL BUILDINGS RUBIN ALSO HAS BEGUN A BULKBUYING PROGRAM COVERING ABOUT A DOZEN PROPERTIES GIVING THOSE OWNERS CHEAPER PRICES ON ALL THEY BUY FOR THEIR BUILDINGS FROM ELEVATOR MAINTENANCE TO PAPER PRODUCTS BAD NEWS FOR THRIFTY SHOPPERS MARKETERS ISSUED ABOUT THE SAME NUMBER OF CENTSOFF COUPONS LAST YEAR AS THEY DID IN 1992 ENDING 20 YEARS OF STEADY INCREASES MANUFACTURERS DISTRIBUTED 323 BILLION COUPONS LAST YEAR ROUGHLY ON PAR WITH 1992 ACCORDING TO CAROLINA MANUFACTURERS SERVICE A WINSTONSALEM NC FIRM THAT TRACKS COUPON USAGE THE 322 MILLION ISSUED IN 1992 MARKED A 10 INCREASE OVER 1991 WHEN COMPANIES WERE EAGER TO WOO RECESSIONBATTERED SHOPPERS COUPON DISTRIBUTION BEGAN ITS DECLINE AT THE END OF 1992 CMS SAYS BECAUSE MANY COMPANIES EXHAUSTED PROMOTION BUDGETS EARLY IN THE YEAR IN 1993 COUPON USAGE DIDN'T PICK UP PARTLY BECAUSE EVERYDAY LOWPRICING POLICIES BECOME POPULAR ALL THE TRADITIONAL WAYS OF PROMOTING PRODUCTS HAVE BEEN CALLED INTO QUESTION SAYS JOAN JOHNSON CMS MANAGER OF MARKETING COMMUNICATIONS SHOPPERS TOO ARE APPARENTLY LESS INTERESTED IN COUPONS THEY REDEEMED 77 BILLION COUPONS LAST YEAR A MERE 23 OF ALL MANUFACTURERS' COUPONS DISTRIBUTED DOWN 3 FROM THE 79 BILLION REDEEMED IN 1992 THE REDEMPTION RATE FOR FREESTANDING INSERTS THOSE GLOSSY COUPONS IN SUNDAY NEWSPAPERS WAS EVEN LOWER AT 21 IN 1993 COMPARED WITH 23 IN 1992 CMS SAYS MANUFACTURERS HAVE DIMINISHED COUPONS' EFFECTIVENESS BY FEATURING MORE THAN ONE PER PAGE IN INSERTS AND BY GIVING CONSUMERS LESS TIME TO USE THEM IN 1993 COUPONS HAD AN AVERAGE LIFE OF 38 MONTHS IN 1988 THEY LASTED TWICE AS LONG VALENTINE'S DAY IS STILL MORE A HOLIDAY FOR WOMEN ACCORDING TO GODIVA CHOCOLATIER A UNIT OF CAMPBELL SOUP 80 OF AMERICAN MEN SAY THEY INTEND TO GIVE THEIR VALENTINE A GIFT COMPARED WITH 65 OF WOMEN BOTH MEN AND WOMEN CONSIDER FLOWERS THE MOST ROMANTIC GIFT FOLLOWED BY JEWELRY LINGERIE CHOCOLATES AND PERFUME IN THE LAST SIX MONTHS 62 OF SHOPPERS LEFT A STORE WITHOUT BUYING ANYTHING BECAUSE THEY COULDN'T FIND A SALES CLERK ACCORDING TO A YANKELOVICH PARTNERS SURVEY FOR MASTERCARD INTERNATIONAL AND THE NATIONAL RETAIL FEDERATION 9402040009 940204 WHAT'S NEWS BUSINESS AND FINANCE THE CLINTON HEALTH PLAN RECEIVED ANOTHER BROADSIDE FROM BUSINESS AS THE US CHAMBER OF COMMERCE WARNED CONGRESS AGAINST EVEN USING THE BILL AS A STARTING POINT FOR FUTURE LEGISLATION THE STATEMENT CAME ON THE HEELS OF A BUSINESS ROUNDTABLE VOTE ALSO REBUFFING THE ADMINISTRATION PLAN A SENIOR CHAMBER OFFICIAL DESCRIBED THE TWIN ACTIONS AS A WAKEUP CALL TO THE PRESIDENT OF ERODING BUSINESS SUPPORT FOR HIS PLAN DELTA PLANS TO CUT TRANSATLANTIC CAPACITY 12 THIS SUMMER ELIMINATING SCORES OF UNPROFITABLE ROUTES IT INHERITED AFTER BUYING PAN AM'S EUROPEAN OPERATIONS OVER TWO YEARS AGO RETAILERS REPORTED DISAPPOINTING SALES GROWTH FOR JANUARY HURT BY THE SEVERE WINTER WEATHER AND THE CALIFORNIA EARTHQUAKE BUT EVEN ALLOWING FOR THOSE FACTORS SALES DIDN'T APPEAR TO REFLECT THE IMPROVED ECONOMY AND CONSUMER CONFIDENCE ANALYSTS SAID US SALES OF CARS AND LIGHT TRUCKS INCREASED 137 IN JANUARY FROM A YEAR EARLIER TO 1022543 VEHICLES SEGA AND MCA ARE PLANNING TO BUILD AN ENTERTAINMENT ATTRACTION AS PART OF MCA'S UNIVERSAL STUDIOS HOLLYWOOD COMPLEX IN SOUTHERN CALIFORNIA PEOPLE CLOSE TO THE SITUATION SAY TED TURNER SAID HE IS WILLING TO RELINQUISH 51 VOTING CONTROL OF TURNER BROADCASTING SYSTEM TO FULFILL HIS GOAL OF ESTABLISHING A NETWORK SHORTTERM US INTEREST RATES SOARED AS SPECULATION ABOUT WHEN THE FED WILL TIGHTEN MONETARY POLICY SENT A SHUDDER THROUGH THE BOND MARKETS THE BUNDESBANK CHILLED HOPES FOR LOWER GERMAN INTEREST RATES ANY TIME SOON BY REPORTING AN UNEXPECTEDLY BIG JUMP IN DECEMBER MONEY SUPPLY A HOUSE PANEL VOTED TO ALLOW BANKS TO BUILD NATIONWIDE BRANCH SYSTEMS AND IN THE SENATE AN AMENDMENT THAT HAS BLOCKED PASSAGE OF NATIONWIDE BANKING IN THE PAST WAS WITHDRAWN OWENSILLINOIS SAID IT IS SLASHING ITS US WORK FORCE BY 10 OR 2000 EMPLOYEES AND TAKING A 355 MILLION CHARGE FOR THE 1993 FOURTH QUARTER THE THREE MAJOR BROADCAST NETWORKS ARE SETTING UP A 20 MILLION TEST TVRATINGS SERVICE CITING FRUSTRATION WITH THE QUALITY OF NIELSEN'S SYSTEM MANUFACTURING ORDERS CLIMBED 12 IN DECEMBER TO 26602 BILLION THE FIFTH CONSECUTIVE MONTHLY INCREASE NISSAN PLANS TO BUY BACK ALL OF THE ESTIMATED 33000 NISSAN VANS IT SOLD FROM 1987 TO 1990 BECAUSE OF POTENTIAL ENGINE FIRES THE MOVE COULD COST UP TO 180 MILLION INDUSTRY OFFICIALS SAID THE FCC STREAMLINED ITS METHODS OF REGULATING MOBILE COMMUNICATIONS AND APPROVED A PLAN TO LICENSE NEW WIRELESS DATA AND MESSAGE SERVICES RUPERT MURDOCH'S BRITISH SKY BROADCASTING VENTURE POSTED A SIXFOLD JUMP IN PROFIT FOR THE FISCAL FIRST HALF BONDS LEHMAN BROTHERS TREASURY INDEX 559501 OFF 2078 COMMODITIES OIL 1589 A BARREL OFF 15 CENTS DOW JONES FUTURES INDEX 14489 UP 136 SPOT INDEX 13135 UP 063 DOLLAR 10814 YEN UP 026 17415 MARKS UP 00069 9402040008 940204 ECONOMY RETAILERS POST DISAPPOINTING JANUARY SALES BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL UNUSUALLY SEVERE WINTER WEATHER AND THE CALIFORNIA EARTHQUAKE CAUSED RETAILERS TO REPORT DISAPPOINTING SALES RESULTS FOR JANUARY BUT EVEN ALLOWING FOR THE ELEMENTS SALES AT BIG RETAIL CHAINS DIDN'T APPEAR TO REFLECT THE IMPROVED ECONOMY AND MORE BUOYANT CONSUMER CONFIDENCE INDUSTRY WATCHERS SAID SALES ROSE UP TO 35 JANUARY SALES AT THE NATION'S BIGGEST RETAILERS GREW 35 ACCORDING TO AN INDEX COMPILED BY SALOMON BROTHERS INC A SIMILAR INDEX COMPILED BY PAINEWEBBER INC SAW RETAIL SALES CLIMB 33 IN BOTH INDEXES THE JANUARY GAIN WAS LOWER THAN SALES INCREASES IN DECEMBER 1993 AND IN THE YEAREARLIER MONTH IN KEEPING WITH A RECENT DEVELOPMENT RETAILERS THAT SELL HOME FURNISHINGS DID BETTER THAN ALL BUT A FEW OF THOSE THAT SELL CLOTHING DISCOUNT AND DEPARTMENT STORES FARED BETTER THAN SPECIALTY RETAILERS IT'S VERY DIFFICULT TO TRACE THE TRANSFER OF RENEWED CONSUMER CONFIDENCE INTO ACCELERATED SPENDING SAID JANET MANGANO A RETAIL ANALYST AT BURNHAM SECURITIES INC CONSUMERS WOULD RATHER SPEND THEIR HARDEARNED DOLLARS OR BORROW MONEY FOR MERCHANDISE THAT THEY FEEL HAS A LONGLASTING VALUE WHICH IN GENERAL IS MERCHANDISE FOR THE HOME OR CARS THE DISAPPOINTING JANUARY RESULTS AREN'T LIKELY TO HAVE A SUBSTANTIAL EFFECT ON RETAILERS' FISCAL FOURTHQUARTER EARNINGS THOUGH BECAUSE JANUARY NORMALLY CONTRIBUTES LESS THAN 20 OF FOURTHQUARTER SALES AND AN EVEN LOWER PORTION OF PROFITS ANALYSTS SAID THEY ADDED THAT THE OUTLOOK FOR THE NEXT THREE MONTHS IS GOOD BECAUSE RETAILERS FACE EASIER YEARTOYEAR COMPARISONS THAN THEY DID IN DECEMBER AND JANUARY THE FISCAL FIRST QUARTER WHICH BEGAN JAN 30 WILL GIVE RETAILERS PROBABLY THE EASIEST COMPARISONS BACKTOBACK IN A COUPLE OF YEARS SAID JEFFREY FEINER A RETAIL ANALYST AT SALOMON BROTHERS MR FEINER SAID HE THEREFORE REMAINS OPTIMISTIC ABOUT THE BIG RETAILERS' PROSPECTS HE NOTED THAT AT LEAST A FEW COMPANIES POSTED STRONG APPARELSALES GAINS JC PENNEY CO SAID IT GOT ITS BIGGEST BOOST FROM ITS HOMEFURNISHINGS DEPARTMENT BUT ADDED THAT ITS WOMEN'S APPAREL SOLD WELL ALSO PENNEY REPORTED A 46 SALES GAIN IN STORES OPEN AT LEAST A YEAR WALMART STORES INC THE NATION'S LARGEST RETAILER POSTED A 5 SAMESTORE SALES GAIN FOR JANUARY SEARS ROEBUCK & CO SAID IMPROVED SALES OF WOMENS' APPAREL HELPED IT ACHIEVE A 91 SAMESTORE SALES GAIN THE SEVERE WEATHER WORKED TO SEARS'S BENEFIT IN SOME AREAS AS IT REPORTED DOUBLEDIGIT SALES GAINS OF TIRES AND CAR BATTERIES OTHER RETAILERS WERE HURT BADLY BY THE ELEMENTS DAYTON HUDSON CORP SAID THE CALIFORNIA EARTHQUAKE WILL CAUSE IT TO TAKE A PRETAX FOURTHQUARTER CHARGE OF 20 MILLION TO 25 MILLION FIVE OF ITS 107 STORES IN SOUTHERN CALIFORNIA REMAIN CLOSED OVERALL DAYTON HUDSON POSTED A 29 SALES GAIN IN STORES OPEN AT LEAST A YEAR MERCANTILE STORES CO SAID STORES IN SOME OF ITS KEY AREAS SUCH AS TENNESSEE AND ALABAMA WERE HIT WITH THE SEVEREST WEATHER EXPERIENCED IN 17 YEARS THE COMPANY SHOWED A 76 SAMESTORE SALES DECLINE IN JANUARY MAY DEPARTMENT STORES CO DIDN'T INCLUDE IN ITS MONTHLY REPORT RESULTS FROM THE SEVEN STORES THAT REMAIN CLOSED AS A RESULT OF THE EARTHQUAKE EXCLUDING THOSE STORES MAY HAD A 5 SAMESTORE SALES GAIN LOOKING FORWARD RETAIL ANALYSTS SAID THEY ALREADY HAVE DETECTED EVIDENCE OF INCREASED CONSUMER SPENDING THERE'S A SHOPPING SPREE GOING ON IN THE FIRST WEEK OF FEBRUARY ON THE EAST COAST SAID MARGO MCGLADE A PAINEWEBBER RETAIL ANALYST 9402040007 940204 LEISURE & ARTS BOOKSHELF SIN AND HURT MIXED WITH CHARM DOWN SOUTH BY LEE LESCAZE JOE ODOM A GENIAL ROGUE WHO CALLS HIMSELF THE HOST OF SAVANNAH AND SPECIALIZES IN FREELOADING ROUNDTHECLOCK PARTIES AND PASSING BAD CHECKS SAYS SAVANNAH HAS THREE BASIC RULES ALWAYS STICK AROUND FOR ONE MORE DRINK NEVER GO SOUTH OF GASTON STREET OBSERVE THE HIGH HOLIDAYS ST PATRICK'S DAY AND THE DAY OF THE GEORGIAFLORIDA FOOTBALL GAME NOT ALL SAVANNAHIANS PLAY BY MR ODOM'S RULES OF COURSE BUT HIS DEDICATION TO DRINKING PARTYING AND A SNOBBERY THAT IGNORES CERTAIN SECTIONS OF THE CITY IS SHARED BY MOST OF THE DOZENS OF EXOTICS WHO FEATURE IN JOHN BERENDT'S ENTERTAINING ACCOUNT OF GOOD TIMES SERIOUS CRIME AND RAFFISH BEHAVIOR MIDNIGHT IN THE GARDEN OF GOOD AND EVIL RANDOM HOUSE 388 PAGES 23 I DON'T KNOW WHAT THIS BOOK WILL DO FOR SAVANNAH TOURISM OVERALL BUT IT IS CERTAIN TO ATTRACT ANYONE WITH A TASTE FOR OLD HOUSES AND ENDURING VICES ONE SAVANNAHIAN WHO HAD BOTH WAS JIM WILLIAMS A CONTROVERSIAL AND FLAMBOYANT ANTIQUES DEALER HOW DOES IT FEEL TO BE NOUVEAU RICHE WILLIAMS WAS ASKED IT'S THE RICHE THAT COUNTS HE REPLIED OF THE OLDMONEY SOCIAL ELITE WILLIAMS TOLD MR BERENDT THAT IF THEY SHARE A SINGLE TRAIT IT'S THEIR LOVE OF MONEY AND THEIR UNWILLINGNESS TO SPEND IT SOME MEMBERS OF OLD FAMILIES FOUGHT WITH OR SNUBBED WILLIAMS BUT WILLIAMS WAS FAMOUS FOR HIS CHRISTMAS PARTY IN HIS HOME THE LARGEST PRIVATE RESIDENCE IN THE CITY THE GRANDEUR OF HIS HOUSE THE BEAUTY OF ITS FURNISHINGS HIS CLEVER MANIPULATION OF HIS GUEST LIST AND HIS LAVISH SPENDING TURNED WILLIAMS'S GALA INTO SAVANNAH'S PARTY OF THE YEAR FROM WILLIAMS MR BERENDT GOT AN INTRODUCTION TO SAVANNAH'S DARKER SIDE YOU MUSTN'T BE TAKEN IN BY THE MOONLIGHT AND MAGNOLIAS THERE'S MORE TO SAVANNAH THAN THAT THINGS CAN GET VERY MURKY WILLIAMS SAID WHILE DESCRIBING A SERIES OF MURDERS AMONG THE RICH THAT HAD BEEN SWEPT UNDER THE RUG SOON MURK DESCENDED ON WILLIAMS HIMSELF IN HIS STUDY HE SHOT AND KILLED A 21YEAROLD HUSTLER NAMED DANNY HANSFORD WHO HAD BEEN HIS LOVER AND ALSO WORKED IN HIS FURNITURERESTORATION SHOP HANSFORD'S FAME FOR SEXUAL ABILITY HAD BEEN SPREADING PRENTISS CROWE AN OLDMONEY SAVANNAHIAN REACTED TO THE KILLING WITH CONFIDENCE THAT SAVANNAH JUSTICE WOULD ONCE AGAIN SHIELD A RICH MAN CAUGHT IN AN EXPOSED POSITION BUT WITH EQUAL CERTAINTY THAT SOME MEN AND WOMEN WOULD BE RESENTFUL HE EXPLAINED HANSFORD WAS KNOWN AS A GOOD TIME BUT A GOOD TIME NOT YET HAD BY ALL IN KEEPING WITH THE ELITE'S ATTITUDE TOWARD THE LESS FORTUNATE DEAD WILLIAMS WAS COOL WHEN ASKED IN COURT ABOUT THE APPROPRIATENESS OF HIS RELATIONSHIP WITH HANSFORD GIVEN THEIR AGES I WAS 52YEARSOLD BUT HE HAD 52 YEARS' WORTH OF MILEAGE ON HIM HE REPLIED NEW YORKBASED MR BERENDT FELL FOR SAVANNAH'S SINFUL WAYS AND OLDFASHIONED CHARMS IN THE EARLY 1980S AND DECIDED TO TAKE UP BICITY LIVING HE WASN'T THERE LONG BEFORE HE SAW A BOOK BEFORE HIS EYES MIDNIGHT IS AT ITS BEST WHEN IT IS SKETCHING THE NATURE OF THE CITY AND INTRODUCING CHARACTERS SUCH AS THE BLACK TRANSVESTITE CHABLIS COL JIM ATWOOD OWNER OF HITLER'S SILVERWARE AND LUTHER DRIGGERS A MAN WHO MAY OR MAY NOT HAVE A VIAL OF DEADLY POISON BUT IS MORE IMMEDIATELY DETERMINED TO MAKE GOLDFISH GLOW IN THE DARK THE WILLIAMS MURDER TRIALS THERE WERE THREE OF THEM BECAME THE CORE STORY OF MIDNIGHT IN THE GARDEN OF GOOD AND EVIL MR BERENDT IS A SKILLFUL NARRATOR BUT INTERESTING AS THE WILLIAMS CASE IS IT DOESN'T REMAIN FASCINATING OVER ALL THE PAGES MR BERENDT GIVES IT ALL THE MAIN CHARACTERS ARE MEMORABLE THOUGH AT LEAST UNTIL THE READER REACHES THE BOOK'S LAST PAGE AND FINDS AN AUTHOR'S NOTE REVEALING THAT A NUMBER OF PSEUDONYMS HAVE BEEN USED AND WHAT'S MORE MR BERENDT HAS ALTERED DESCRIPTIONS OF SOME PEOPLE TO PROTECT THEIR PRIVACY THOUGH THIS IS A WORK OF NONFICTION I HAVE TAKEN CERTAIN STORYTELLING LIBERTIES PARTICULARLY HAVING TO DO WITH THE TIMING OF EVENTS MR BERENDT ADDS ALTERED HOW WAS DANNY HANSFORD REALLY DANIELLE HANSFORD AND WHAT STORYTELLING LIBERTIES ALLOW A NONFICTION WRITER TO ALTER CHRONOLOGY FACTION IS AN UNLIKABLE HYBRID A FULLY FICTIONAL EVOCATION OF ANOTHER GREAT SOUTHERN PORT CITY CAN BE FOUND IN JOHN GREGORY BROWN'S DECORATIONS IN A RUINED CEMETERY HOUGHTON MIFFLIN 244 PAGES 1995 SET IN NEW ORLEANS AND SPANNING THE YEARS FROM THE '60S UNTIL THE PRESENT MR BROWN'S FIRST NOVEL IS COMPELLINGLY TOLD IN THE VOICES OF TWO WHITE WOMEN AND A BLACK MAN IN THE TRADITION OF FAULKNER AND OTHER SOUTHERN WRITERS THE STORY GRADUALLY UNTANGLES ACTIONS TAKEN YEARS AGO THE EFFECTS OF WHICH HAVE PASSED AFFLICTION DOWN OVER THE YEARS MR BROWN'S COMPLICATED PLOT DEVELOPMENT ISN'T ALWAYS MESMERIZING BUT HIS WRITING FREQUENTLY IS HIS WORDS CONVEY YEARS OF WONDER AND THE WORLD OF HURT THAT COMES WITH LOVE UNANSWERED 9402040006 940204 BUSINESS BRIEF USX CORP BUDGET OF MARATHON UNIT IS REDUCED 12 THIS YEAR USX CORP PITTSBURGH SAID IT APPROVED A 12 LOWER CAPITAL INVESTMENT AND EXPLORATION BUDGET FOR ITS MARATHON GROUP UNIT FOR 1994 IN HOPES THAT LOWER SPENDING WILL HELP REDUCE DEBT AND IMPROVE THE COMPANY'S FINANCIAL PROFILE USX A STEEL PETROLEUM AND NATURALGAS CONCERN APPROVED A BUDGET OF 895 MILLION DOWN FROM THE 101 BILLION SPENT IN 1993 THE COMPANY SAID IT NOTED THAT THE DECREASE PRIMARILY RESULTS FROM THE SUBSTANTIAL COMPLETION OF THREE MULTIYEAR PROJECTS MARATHON'S CAPITAL BUDGET OF 752 MILLION INCLUDES 496 MILLION FOR PRODUCTION ACTIVITIES 246 MILLION FOR REFINING MARKETING AND TRANSPORTATION AND 10 MILLION FOR OTHER EXPENDITURES ITS WORLDWIDE EXPLORATION BUDGET OF 143 MILLION INCLUDES 84 MILLION FOR INTERNATIONAL ACTIVITIES 9402040005 940204 THURSDAY'S MARKETS BONDS DECLINE ON RATE WORRY STOCKS ALSO FALL BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SANK ON SPECULATION THAT THE FEDERAL RESERVE HAS DECIDED TO BOOST SHORTTERM INTEREST RATES STOCK PRICES FOLLOWED BONDS LOWER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL 788 POINTS TO 396766 STANDARD & POOR'S 500STOCK INDEX LOST 129 TO 48071 AND THE NASDAQ COMPOSITE INDEX SLIPPED 178 TO 79779 TRADERS SPECULATED ABOUT A RISE IN RATES AFTER THE FED FAILED TO INTERVENE IN THE MARKET WHEN THE FEDERAL FUNDS RATE WAS TRADING ABOVE THE TARGETED 3 LEVEL I WOULD TAKE THAT AS A SIGN THE FED HAS BEGUN TO TIGHTEN SAID DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA IT'S VERY VERY SUBTLE AT BEST AN IMPLICIT INDICATION THEY MAY BE MOVING MR MAUDE SAID AN IMMINENT MOVE WOULD SURPRISE HIM BUT HE BELIEVES RECENT STRENGTH IN COMMODITIES PRICES AND SOME INFLATIONARY PRESSURES IN THE LATEST PURCHASING MANAGERS' REPORTS MAY HAVE FORCED THE FED'S HAND ALAN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS SAID HE EXPECTS THE FED TO SHIFT ITS STANCE FROM NEUTRAL TO A BIAS TOWARD TIGHTENING DURING THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE WHICH ENDS TODAY BUT HE THINKS THERE'S ONLY A 25 CHANCE OF A BOOST IN SHORT RATES TODAY WITH THE ODDS RISING TO 75 BY MIDMARCH THE INDUSTRIAL AVERAGE PLUNGED MORE THAN 25 POINTS DURING THE SESSION BUT BOUNCED BACK IN LATE TRADING ANALYSTS SAID THE REBOUND SUGGESTS THAT INVESTORS ARE APPROPRIATELY FOCUSED ON THE POSITIVE ECONOMIC ENVIRONMENT WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 075 TO 11827 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 318 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1190 ISSUES FELL AND 918 ROSE BOND PRICES SLID THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 3/8 POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 631 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17415 MARKS AND 10814 YEN COMPARED WITH 17336 MARKS AND 10788 YEN WEDNESDAY 9402040004 940204 FIGGIE INTERNATIONAL PUTS RAWLINGS UNIT ON THE SALE BLOCK WILLOUGHBY OHIO FIGGIE INTERNATIONAL INC FACING A LIQUIDITY CRUNCH PUT ITS RAWLINGS SPORTING GOODS DIVISION ON THE BLOCK FIGGIE SAID IT RETAINED DILLON READ & CO TO MANAGE THE SALE OF ALL OR PART OF RAWLINGS WHICH MAKES BASEBALLS BASKETBALLS EQUIPMENT AND UNIFORMS INCLUDING THOSE USED BY PROFESSIONAL SPORTS TEAMS THE COMPANY IS TRYING TO FOCUS ON INDUSTRIAL AND TECHNICAL MANUFACTURING ON JAN 9 FIGGIE SAID IT INCURRED A SIGNIFICANT LOSS FOR THE FOURTH QUARTER AND YEAR AND WAS SEEKING TO SELL SOME NONCORE ASSETS TO PAY DOWN DEBT IT HASN'T YET REPORTED FOURTHQUARTER RESULTS MEANWHILE ACKNOWLEDGING A CASHFLOW SQUEEZE FIGGIE IS RENEGOTIATING ITS CREDIT LINES WITH ITS BANK SYNDICATE AFTER EXHAUSTING ITS 150 MILLION LINE OF CREDIT WHILE FIGGIE DOESN'T RELEASE FINANCIAL RESULTS OF ITS INDIVIDUAL UNITS ANALYSTS PUT RAWLINGS'S ANNUAL REVENUE AT ABOUT 125 MILLION THE ST LOUISBASED DIVISION WITH 1300 EMPLOYEES IS THE LARGEST PIECE OF FIGGIE'S CONSUMERPRODUCTS GROUP WHICH HAD AN OPERATING PROFIT OF 29 MILLION ON SALES OF 223 MILLION IN 1992 IT'S A GOOD CHOICE TO DROP SAID ONE ANALYST WHO ASKED NOT TO BE IDENTIFIED IT HASN'T BEEN THAT GREAT ON THE BOTTOM LINE YET THE NAME AND THE FRANCHISE ARE GOOD ENOUGH THAT SOMEBODY WILL BE WILLING TO PAY A GOOD PRICE FOR IT FIGGIE CHAIRMAN HARRY FIGGIE IS THE AUTHOR OF THE BESTSELLING BOOK BANKRUPTCY 1995 A GRIM WARNING ABOUT THE US'S MOUNTING DEFICIT FIGGIE'S DEBT HAS BEEN GROWING STEEPLY AS WELL AS OF SEPT 30 FIGGIE HAD ABOUT 450 MILLION OF DEBT MR FIGGIE SAYS HE WANTS TO REDUCE DEBT TO 200 MILLION IN 1994 IN 1992 FIGGIE HAD NET INCOME OF 283 MILLION ON SALES OF 12 BILLION FROM ITS MIX OF CONSUMER TECHNICAL INDUSTRIAL AND SERVICE BUSINESSES RANGING FROM FIREFIGHTING EQUIPMENT TO PRIVATE SECURITY OPERATIONS 9402040003 940204 SHANGRILA HOTELS SEE A GOLDEN HORIZON CHAIN SETS MAJOR EXPANSION IN CHINA ANALYSTS PREDICT GROWTH BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ROBERT KUOK HOCK NIEN HAS A MADE A CAREER OF PLANTING HOTELS IN PLACES OTHERS SHUN NOW THE MALAYSIANCHINESE TYCOON'S SHANGRILA CHAIN IS REAPING THE REWARDS SHANGRILA ASIA LTD A HOLDING COMPANY FOR MR KUOK'S HOTELS IN CHINA AND HONG KONG HAS TRADED AS HIGH AS 1230 HONG KONG DOLLARS US159 A SHARE SINCE ITS OFFERING IN JUNE AT 490 THE COMPANY 59OWNED BY THE FAMILYCONTROLLED KUOK GROUP IS EXPECTED TO REPORT IN MARCH THAT NET INCOME SURGED ABOUT 70 IN 1993 ANALYSTS SEE FURTHER SHARP GAINS IN THE NEXT FEW YEARS FOR SHANGRILA WHICH TRADES ON HONG KONG'S STOCK EXCHANGE AIDES TO MR KUOK SAY HIS HOTEL OPERATIONS ELSEWHERE IN THE ASIANPACIFIC REGION ALSO ARE PROFITABLE AND EXPANDING BUT HIS BOLDEST AMBITIONS ARE IN CHINA IN DECEMBER SHANGRILA ISSUED US259 MILLION IN CONVERTIBLE BONDS TO FINANCE 11 PROJECTS IN CHINA BRINGING THE CHAIN'S HOTEL PORTFOLIO THERE TO AT LEAST 18 BY 1998 HOWEVER THESE HOTELS ARE JUST A DROP IN THE BUCKET SAID PHO BA QUAN SHANGRILA'S CHAIRMAN MR KUOK HAS SAID HE WANTS TO BUILD 100 HOTELS IN HIS LIFETIME IN CHINA MR KUOK 70 YEARS OLD IS AIMING HIGH SHANGRILA CREATED A DECADE AGO RIVALS SUCH LONGESTABLISHED ASIAN LUXURYHOTEL CHAINS AS MANDARIN ORIENTAL INTERNATIONAL LTD AND HONGKONG & SHANGHAI HOTELS LTD IT HAS EXPANDED AGGRESSIVELY IN BOTH CHINA AND THE PHILIPPINES IN RECENT YEARS WHILE SOME OTHER ASIAN CHAINS PLAYED IT SAFE BY INVESTING IN US AND EUROPEAN PROPERTIES MR KUOK'S BIGGEST VENTURE IN CHINA DATES TO 1984 WHEN HE AGREED TO BUILD CHINA WORLD TRADE CENTRE IN BEIJING A US510 MILLION HOTEL APARTMENT AND COMMERCIAL COMPLEX DURING THE SUPPRESSION IN 1989 OF CHINESE PRODEMOCRACY DEMONSTRATIONS SEVERAL WINDOWS OF THE COMPLEX WERE SHATTERED THE CRACKDOWN SENT MANY INVESTORS AND TOURISTS SCURRYING BUT MR KUOK CONTINUED TO INVEST IN THE DARK DAYS SAID NICK PEACOCK HEAD OF INVESTMENT RESEARCH AT SCHRODERS ASIA LTD TODAY MANY COMPANIES WOULD LIKE TO INVEST THERE HE SAID BUT YOU CAN'T JUST WALK INTO CHINA MR KUOK HAS AN EDGE BECAUSE FEW CAN MATCH HIS CONTACTS THOSE CONNECTIONS CULTIVATED THROUGH HIS INTERESTS IN COMMODITIES SHIPPING MEDIA AND HOTELS HELP HIM OBTAIN CHOICE SITES AND JOINTVENTURE PARTNERS INDUSTRY EXECUTIVES SAY MEANWHILE MANDARIN ORIENTAL AND HONGKONG & SHANGHAI HOTELS ARE STILL SEARCHING FOR OPPORTUNITIES IN CHINA A DECADE AGO HONGKONG & SHANGHAI HAD A LEAD IN 1982 IT BECAME THE FIRST INTERNATIONAL HOTEL COMPANY TO MANAGE A JOINTVENTURE HOTEL IN CHINA TAKING ON THE JIANGUO HOTEL BEIJING BUT IT RELINQUISHED MANAGEMENT IN 1987 AND THAT OF THE GARDEN HOTEL GUANGZHOU IN 1990 BECAUSE CONTRACTS EXPIRED CURRENTLY THE FIRM OPERATES ONLY ONE HOTEL IN CHINA THE PALACE IN BEIJING IN WHICH IT HAS A 20 STAKE IT PULLED OUT OF THE 647ROOM PORTMAN HOTEL PART OF THE SHANGHAI CENTRE COMMERCIAL AND RESIDENTIAL PROJECT IN 1990 AFTER NEARLY FOUR YEARS OF INVOLVEMENT CITING AN HONEST DIVERGENCE OF PHILOSOPHY SHANGRILA INTERNATIONAL LTD THE KUOK GROUP'S HOTELMANAGEMENT COMPANY STEPPED INTO THE BREACH TAKING OVER MANAGEMENT OF THE PORTMAN SHANGRILA ASIA ACQUIRED A 20 STAKE IN THE ENTIRE COMPLEX IN DECEMBER 1992 NOW THE PORTMAN SHANGRILA WITH ADJOINING APARTMENTS AND COMMERCIAL SPACE IS ONE OF SHANGRILA ASIA'S MOST PROFITABLE OPERATIONS IN CHINA THE COSTS OF EXPANDING IN CHINA LED TO LOSSES IN 1990 AND 1991 AT SHANGRILA ASIA BUT THE COMPANY RECORDED 1992 PROFIT OF HK2224 MILLION US288 MILLION FOR 1993 THE COMPANY HAS SAID IT EXPECTS EARNINGS OF AT LEAST HK365 MILLION BARCLAYS DE ZOETE WEDD ASIA LTD FORECASTS THAT GROWTH WILL AVERAGE 30 ANNUALLY THIS YEAR AND NEXT MR KUOK ALSO MOVED INTO THE PHILIPPINES EVEN AS TURMOIL THERE MADE OTHER INVESTORS SKITTISH IN 1989 KUOK GROUP INTERESTS AND KUOK PHILIPPINE PROPERTIES INC WHICH IS LISTED LOCALLY BEGAN THE US63 MILLION EDSA PLAZA HOTEL IN MANILA AND CLINCHED FINANCING TO BUILD THE US118 MILLION SHANGRILA MANILA INTERNATIONAL FINANCE CORP A WORLD BANK AFFILIATE MADE A US20 MILLION LOAN TO THE SHANGRILA MANILA PROJECT AND LED A SYNDICATION TO RAISE ANOTHER US30 MILLION IN COMMERCIALBANK LOANS IT ALSO ASSISTED OTHER PROJECTS THE INVESTMENTS APPARENTLY ARE PAYING OFF OCCUPANCY AT THE 703ROOM SHANGRILA MANILA HAS HOVERED AT 70 TO 80 SINCE ITS APRIL OPENING DESPITE HIS EAGERNESS TO EXPAND THE CHAIN MR KUOK HAS BACKED AWAY FROM SOME DEALS IN 1987 AIDES SAY HE PULLED OUT OF A PROJECT IN SEOUL SOUTH KOREA BECAUSE OF WHAT HE SAW AS FICKLE BEHAVIOR ON THE PART OF THE JOINTVENTURE PARTNER IN 1992 HE DECIDED NOT TO PROCEED WITH TWO PROJECTS IN BEIJING FOR SIMILAR REASONS IF IT DOESN'T FEEL RIGHT HE'LL JUST WALK AWAY FROM IT SAID JAMES KAPLAN A HONG KONGBASED HOTEL CONSULTANT SHANGRILA ALSO HAS STUCK WITH A POLICY OF CHARGING PREMIUM ROOM RATES THE CHEAPEST PUBLISHED RATE IS US170 AT THE PORTMAN SHANGRILA AND US275 AT THE ISLAND SHANGRILA IN HONG KONG THOUGH THERE ARE SEASONAL AND CORPORATE DISCOUNTS WHEN MR QUAN MET FUND MANAGERS IN EUROPE AND THE US RECENTLY HE SAYS THEY WERE SURPRISED TO HEAR THAT THE WEAK ECONOMIES THERE HAVE HARDLY HAD ANY IMPACT ON US ASIAN TRAVELERS ACCOUNT FOR MORE THAN HALF THE CHAIN'S CLIENTELE AND ARE OFTEN BIGGER SPENDERS THAN WESTERN CUSTOMERS WHILE A WESTERNER MIGHT DINE ALONE AT THE HOTEL COFFEE SHOP MR QUAN SAID THE ASIAN GUY WILL INVITE HIS FRIENDS AND BUSINESS COLLEAGUES AND HAVE A BIG CHINESE DINNER DRINKING EXPENSIVE COGNAC INSTEAD OF BEER BUT RANDOLPH GUTHRIE FORMER MANAGING DIRECTOR OF SHANGRILA INTERNATIONAL WHICH MANAGES THE CHAIN'S HOTELS WORRIES THAT SERVICE MIGHT BE SUFFERING AS THE CHAIN BALLOONS MR GUTHRIE NOW MANAGING DIRECTOR OF FORTE GRAND HOTELS IN BRITAIN SAID HE LEFT SHANGRILA IN MARCH AFTER 10 YEARS BECAUSE HE WAS AT ODDS WITH A NEW MORE PRACTICAL APPROACH TO RUNNING THE HOTELS MR GUTHRIE WHO CALLS MR KUOK A VISIONARY AND AN ABSOLUTE GENIUS RECALLED THAT THE TYCOON USED TO INSPECT THE DECOR OF GUEST ROOMS AND THE FOOD IN HOTEL KITCHENS BUT MR GUTHRIE SAID THAT IN RECENT YEARS MR KUOK INCREASINGLY LEFT DAYTODAY OPERATIONS TO FINANCIAL WIZARDS RATHER THAN INNKEEPERS HOWEVER A SHANGRILA OFFICIAL REJECTED THAT IDEA I CERTAINLY DON'T THINK THE STANDARDS HAVE SLIPPED HE SNIFFED ADDING THAT MR KUOK HAS THE ABILITY TO REMAIN INVOLVED AND DELEGATE AT THE SAME TIME 9402040002 940204 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 APPLE COMPUTER INC 300 MILLION OF NOTES DUE FEB 15 2004 PRICED AS 65S AT 99925 TO YIELD 651 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CONNECTICUT LIGHT & POWER 140 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE FEB 1 1999 PRICED AS 55S AT 99782 TO YIELD 555 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 43 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO CONNECTICUT LIGHT & POWER IS A UNIT OF NORTHEAST UTILITIES CONNECTICUT LIGHT & POWER 140 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE FEB 1 2004 PRICED AS 6125S AT 98354 TO YIELD 635 ACCORDING TO MCM CORPORATEWATCH THE BONDS WHICH ARE NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS THE ISSUE WHICH IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P WAS SOLD THROUGH A COMPETITIVE BID WON BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF STEPUP NOTES DUE FEB 25 1999 PRICED AT PAR TO YIELD 425 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND THE FIRST COUPON WAS PRICED SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE NOTES WILL STEP UP TO 58 ON FEB 25 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF NOTES DUE FEB 15 1996 PRICED AT PAR TO YIELD 431 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF THREEYEAR CALLABLE DEBENTURES DATED FEB 10 PRICED AT PAR TO YIELD 478 THE NOTES ARE CALLABLE AFTER ONE YEAR INTEREST WILL BE PAID SEMIANNUALLY ON AUG 10 AND FEB 10 BEGINNING THIS YEAR IN AUGUST THE DEBENTURES MATURE ON FEB 10 1997 AND WILL BE SOLD THROUGH FREDDIE MAC'S SELLING GROUP HERTZ CORP 150 MILLION OF SENIOR NOTES DUE FEB 1 2001 PRICED AS 6S AT 99134 TO YIELD 6155 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC STONE CONTAINER CORP 710 MILLION OF SENIOR NOTES DUE FEB 1 2001 PRICED AT PAR TO YIELD 9875 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SUNTRUST BANKS INC 200 MILLION OF SUBORDINATED NOTES DUE FEB 15 2004 PRICED AS 6125S AT 99887 TO YIELD 614 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE THE WHENISSUED 10YEAR TREASURY RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC IGEN INC INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 1150 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND CS FIRST BOSTON INC RENAISSANCE COMMUNICATIONS CORP INITIAL OFFERING OF 63 MILLION COMMON SHARES PRICED AT 19 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP STONE CONTAINER CORP 165 MILLION COMMON SHARES PRICED AT 1525 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC STORAGE EQUITIES INC 52 MILLION COMMON SHARES PRICED AT 1475 APIECE THROUGH UNDERWRITERS LED BY PAINEWEBBER INC AND BEAR STEARNS & CO YOUTH SERVICES INTERNATIONAL INC INITIAL PUBLIC OFFERING OF 13 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY FERRIS BAKER WATTS INC MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO 332 MILLION 1994 SERIES A AND SERIES B POWERSUPPLYSYSTEM BONDS PRICED BY A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING ARE 116 MILLION 1994 SERIES A REVENUE BONDS WHICH ARE PRICED TO YIELD FROM 24 IN JULY 1994 TO 528 IN 2017 BONDS DUE IN 199409 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND BONDS DUE IN 201017 ARE INSURED BY AMBAC INDEMNITY CORP THE BONDS CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE 216 MILLION 1994 SERIES B REFUNDING BONDSWHICH ARE INSURED BY MBIAARE PRICED TO YIELD FROM 24 IN JULY TO 528 IN 2017 NEW YORK STATE DORMITORY AUTHORITY 1427 MILLION SERIES 1994A REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 51 IN 2011 TO 525 IN 2018 AND 2024 THE BONDS WHICH ARE FOR THE MOUNT SINAI SCHOOL OF MEDICINE ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SAN DIEGO 430 MILLION PENSIONOBLIGATION BONDS PRICED BY A MERRILL LYNCH & CO GROUP AND GIVEN YIELDS THAT RANGE FROM 472 IN 1996 TO 659 IN 2007 THE BONDS WHICH ARE TAXABLE HAVE A SINGLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P FEDERAL HOME LOAN MORTGAGE CORP 155 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1695 IS BACKED BY FREDDIE MAC GOLD 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS BERLINER HANDELS UND FRANKFURTER BANK GERMANY 150 BILLION ITALIAN LIRE OF 8125 EUROBONDS DUE FEB 28 2001 AT ISSUE PRICE 1017 VIA BANCA COMMERCIALE ITALIANA BONDS YIELD 816 AFTER FULL FEES OF 1875 CHELTENHAM & GLOUCESTER BUILDING SOCIETY UNITED KINGDOM 100 MILLION OF FLOATINGRATE EURONOTES DUE JANUARY 1999 VIA KLEINWORT BENSON LTD BONDS TRADE INTERCHANGEABLY WITH 150 MILLION OF OUTSTANDING IDENTICAL NOTES REOFFERED AT 9981 PAYABLE SEMIANNUALLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 10 BASIS POINTS FROM APRIL 20 BEFORE THAT COUPON AT 54125 CALLABLE QUARTERLY AT PAR FROM JANUARY 1998 FEES UNDISCLOSED COMPANIA GENERAL DE COMBUSTIBLES SA ARGENTINA 50 MILLION OF 85 EUROBONDS DUE FEB 22 1999 AT 995 VIA PARIBAS CAPITAL MARKETS BONDS YIELD MARGIN OF 350 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY DRESDNER INTERNATIONAL FINANCE GERMAN PARENT 100 MILLION MARKS OF LEVERAGED FLOATINGRATE EURONOTES DUE MARCH 1 2004 AT ISSUE PRICE 1012 VIA DRESDNER BANK AG FIRST TWO YEARS ANNUAL COUPON 5125 THEREAFTER PAYABLE SEMIANNUALLY AT TWICE SIXMONTH MARK LIBOR MINUS 69 GUARANTOR DRESDNER BANK AG FEES 15 EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION PORTUGUESE ESCUDOS OF 82 BONDS DUE FEB 23 2001 AT ISSUE PRICE 101125 VIA DEUTSCHE BANK DE INVESTIMENTO AND BANCO PORTUGUES DO ATLANTICO EP RECOMMENDED REOFFER 9975 TO YIELD 825 FEES 1625 LESS 0125 FOR LEAD MANAGER HONG KONG CHINA TREASURY LTD HONG KONG 120 MILLION OF PRIVATELY PLACED GUARANTEED CONVERTIBLE 2 NOTES DUE DEC 31 1999 AT PAR VIA DAIWA BANK SWITZERLAND NOTES CONVERTIBLE FROM MARCH 22 TO NOV 30 1999 AT 5172 HONG KONG DOLLARS A 16 PREMIUM ABOVE THREEDAY AVERAGE CLOSING SHARE PRICE EXCHANGE RATE IS TO BE FIXED MONDAY COMANAGER FEES 175 OLYMPIC CORP JAPAN FIVE BILLION YEN OF 125 CONVERTIBLE EUROBONDS DUE FEB 28 1998 AT ISSUE PRICE PAR NIKKO EUROPE PLC BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES FROM MARCH 14 TO FEB 20 1998 AT INDICATED PREMIUM 25 TERMS ARE TO BE FIXED TUESDAY CALLABLE FROM MARCH 1 1996 AT 101 DECLINING SEMIANNUALLY BY 025 POINT TO PAR SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE FEES 25 LESS 035 FOR LEAD MANAGER PAYABLE SEMIANNUALLY RENAULT FRANCE TWO BILLION FRENCH FRANCS OF 625 EUROBONDS DUE MARCH 2 2004 AT ISSUE PRICE 10126 VIA SOCIETE GENERALE REOFFERED AT 99635 TO YIELD 63 A MARGIN OF 56 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES TWO RHEINLANDPFALZ GERMAN STATE 50 MILLION MARKS OF STEPUP BONDS DUE NOV 29 2018 AT ISSUE AND REOFFER PRICE 10035 VIA MERRILL LYNCH BANK AG FIRST 10 YEARS COUPON 608 THEREAFTER 685 PUT OPTION EXERCISABLE ANNUALLY AT PAR FROM TENTH ANNIVERSARY BONDS TO TRADE INTERCHANGEABLY WITH 100 MILLION MARKS OF IDENTICAL BONDS OUTSTANDING FEES UNDISCLOSED SG WARBURG GROUP PLC UK 125 MILLION OF SUBORDINATED UNDATED 9 EUROBONDS AT ISSUE PRICE 101737 VIA SG WARBURG SECURITIES LTD REOFFERED AT 99987 TO YIELD 9001 ANNUALLY A SPREAD OF 225 BASIS POINTS OVER 875 GILT DUE 2017 CALLABLE FROM FEB 18 1999 TO FEB 17 2024 AT HIGHER OF PAR OR PRICE TO YIELD FLAT WITH PREVAILING LONGDATED GILT CALLABLE THEREAFTER AT PAR FEES 25 WORLD BANK SUPRANATIONAL 100 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE MARCH 8 2004 AT ISSUE PRICE 10025 VIA MITSUBISHI BANK DEUTSCHLAND GMBH PAYABLE SEMIANNUALLY AT SIXMONTH MARK LIBOR PLUS 275 BASIS POINTS FIRST FIVE YEARS REVERTING TO ANNUAL COUPON 6375 LAST FIVE YEARS FEES 025 9402040001 940204 SMALL STOCK FOCUS STOCKS BOUNCE OFF THEIR MIDDAY LOWS TO END SESSION WITH MODERATE DECLINES BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS AGAIN SHOWED RESILIENCE BOUNCING OFF MIDDAY LOWS TO END THE SESSION ONLY SLIGHTLY LOWER THE MAJOR SMALLCAPITALIZATION INDEXES POSTED MARGINAL DECLINES TRADERS AND ANALYSTS SAID THE OUTLOOK FOR A STRONG ECONOMY AND CONTINUED STRONG EARNINGS REPORTS ARE OVERPOWERING FEARS OF A RESURGENCE IN INFLATION OR A TIGHTENING OF MONETARY POLICY BY THE FEDERAL RESERVE ON NASDAQ DECLINERS SLIGHTLY OUTNUMBERED ADVANCERS 1595 TO 1437 ON TOTAL VOLUME OF 3316 MILLION SHARES UP FROM 3349 MILLION SHARES WEDNESDAY NATIONAL MARKET VOLUME WAS 277 MILLION SHARES COMPARED WITH 284 MILLION WEDNESDAY DESPITE THE LINGERING THREAT OF HIGHER INTEREST RATES THE SMALLCOMPANY MARKET CONTINUES TO BE A PICKANDCHOOSE ARENA IN WHICH NEWS AND COMPANY FUNDAMENTALS TEND TO OVERPOWER MARKETWIDE TRENDS SMALL COMPUTERTECHNOLOGY COMPANIES GENERALLY ENDED LOWER BUT IEC ELECTRONICS A NEWARK NY COMPANY THAT MAKES COMPLEX PRINTED CIRCUIT BOARD ASSEMBLIES AND ELECTRONIC SYSTEMS ROSE 1 1/2 OR 92 TO 17 3/4 THE RISE COMES ON THE HEELS OF RAYMOND JAMES'S INITIATION OF COVERAGE WITH A BUY RATING RAYMOND JAMES PREDICTED IEC WHOSE LARGEST CUSTOMER IS COMPAQ COMPUTER WILL SHOW NETINCOME GROWTH OF 43 AND 19 IN FISCAL 1994 AND 1995 RESPECTIVELY RETAILING ISSUES ALSO SHOWED A MARKED TENDENCY TO REACT TO NEWS GOTTSCHALKS WHICH OPERATES A CHAIN OF DEPARTMENT STORES WAS UP 1 1/4 OR 15 TO 9 1/2 IN NEW YORK STOCK EXCHANGE TRADING AFTER REPORTING THAT JANUARY SAMESTORE SALES ROSE 105 FROM A YEAR EARLIER THE FRESNO CALIF RETAILER SAID IT EXPECTS A STRONG AND PROFITABLE FOURTH QUARTER PAYLESS CASHWAYS ROSE 1 3/4 OR 99 TO 19 3/8 IN BIG BOARD TRADING THE KANSAS CITY MO CHAIN OF BUILDINGSUPPLY STORES REPORTED A 108 INCREASE IN JANUARY SAMESTORE SALES CHICO'S FAS A FORT MYERS FLA CLOTHING STORE OPERATOR PLUNGED 3 OR 19 TO 12 3/4 AFTER ITS STOCK WAS DOWNGRADED BY RAYMOND JAMES TO HOLD FROM BUY LOAN AMERICA FINANCIAL A MIAMI LAKES FLA MORTGAGEBANKING SERVICER WAS UP 2 OR 18 AT 13 AFTER SAYING IT MIGHT BE BOUGHT BY A FINANCIAL INSTITUTION THAT WASN'T IDENTIFIED CYRIX A RICHARDSON TEXAS MICROPROCESSOR FIRM WAS UP 3 1/8 OR 14 AT 26 1/8 FOLLOWING AN ANNOUNCEMENT LATE WEDNESDAY THAT THE COMPANY AND INTEL SETTLED VARIOUS ISSUES IN THEIR LEGAL BATTLE OVER CYRIX'S RIGHT TO SELL COMPUTER CHIPS THAT ARE CLONES OF INTEL'S CHIPS KOMAG A MILPITAS CALIF MAKER OF THINFILM COMPONENTS FOR DISK DRIVES ROSE 3 1/2 OR 17 TO 23 5/8 DASTEK ITS JOINT VENTURE WITH ASAHI GLASS AMERICA SAID IT WILL LEAVE THE INDUCTIVE THINFILM HEAD BUSINESS AFTER FULFILLING EXISTING COMMITMENTS THE COMPANY SAID IT WILL TAKE A SUBSTANTIAL FOURTHQUARTER CHARGE MERCURY AIR GROUP ROSE 3/4 OR 17 TO 5 1/8 IN AMERICAN STOCK EXCHANGE TRADING THE LOS ANGELES AIR CARGO COMPANY REPORTED SECONDQUARTER EARNINGS OF 34 CENTS A SHARE UP FROM 16 CENTS A YEAR AGO ONE OF THE DAY'S BIGGEST DECLINERS WAS 4TH DIMENSION SOFTWARE OF TEL AVIV WHICH FELL 7 5/8 OR 40 TO 11 1/2 THE COMPANY LATE WEDNESDAY REPORTED FOURTHQUARTER EARNINGS OF THREE CENTS A SHARE COMPARED WITH 16 CENTS A YEAR EARLIER KULICKE & SOFFA A WILLOW GROVE PA SEMICONDUCTOR COMPANY DROPPED 3 1/8 OR 21 TO 11 3/4 AFTER IT REPORTED FISCAL FIRSTQUARTER EARNINGS OF 28 CENTS A SHARE THAT WAS ABOVE LAST YEAR'S SIX CENTS BUT WELL BELOW ANALYSTS' EXPECTATIONS OF 39 CENTS VENTRITEX FELL 4 OR 10 TO 35 1/2 AFTER HAMBRECHT & QUIST DOWNGRADED THE SUNNYVALE CALIF COMPANY TO UNDERPERFORM FROM BUY PEOPLE KEEP EXPECTING THE MARKET TO TANK BUT IT JUST WON'T COOPERATE WITH THE BEARS SAID WILLIAM SULYA HEAD OF OVERTHECOUNTER TRADING AT AG EDWARDS SMALLCOMPANY STOCKS FELL EARLY ON A WAVE OF PROFITTAKING AND WEAKNESS IN THE BOND MARKET BUT AFTER MIDDAY WE BOUNCED BACK VERY SMARTLY MR SULYA SAID THE BUYERS CAME OUT OF THE WALLS HE SAID ONE OF THE STRENGTHS OF THE SMALLCAP MARKET IS THAT IT'S NOT RUNNING AWAY ON THE UPSIDE IT'S PICKING AWAY IT'S A CONTROLLED SITUATION 9402040029 940120 YOUR MONEY MATTERS SAVVY MUTUALFUND INVESTORS CAN BE A BANE TO SOME BROKERS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL SOME BROKERS THINK INVESTORS ARE BECOMING JUST A LITTLE TOO SMART FOR THEIR OWN GOOD THE BROKERS' GOOD THAT IS INDIVIDUALS NOWADAYS RECEIVE A WEALTH OF INFORMATION AND ADVICE ABOUT FINANCES FROM NEWSPAPERS MAGAZINES CABLE TELEVISION INVESTMENT NEWSLETTERS AND ONLINE DATA SERVICES THE EXPLOSIVE GROWTH OF MUTUAL FUNDS MEANWHILE MAKES IT EASY FOR SMALL INVESTORS TO HIRE EXPERTS TO MANAGE THEIR MONEY AND TO COMPARISON SHOP AMONG THOSE EXPERTS INDIVIDUALS CAN EASILY PERUSE THE MANAGERS' TRACK RECORDS IN STATISTICS PUBLISHED BY SUCH ORGANIZATIONS AS MORNINGSTAR INC AND LIPPER ANALYTICAL SERVICES INC NOT SURPRISINGLY THESE TRENDS ALARM BROKERS BECAUSE THE MORE INDIVIDUAL INVESTORS LEARN TO THINK FOR THEMSELVES THE LESS THEY NEED THEIR BROKERS DATA ON MANAGERS' TRACK RECORDS IN PARTICULAR RENDER THE SALESMAN SUPERFLUOUS WARNS NICK MURRAY A POPULAR INDUSTRY SPEAKER AND COLUMNIST FOR INVESTMENT ADVISOR A TRADE PUBLICATION THAT INCLUDES TIPS FOR BROKERS ON HOW TO SELL MORE EFFECTIVELY PERFORMANCE NUMBERS ALSO MAKE THE COSTS OF BROKERSOLD MUTUAL FUNDS OBVIOUS TO INVESTORS IN CONTRAST TO NOLOAD FUNDS BROKERSOLD FUNDS TYPICALLY COME WITH HEFTY LOADS OR SALES CHARGES AS WELL AS SURRENDER FEES WHAT'S MORE ALL THE ACADEMIC RESEARCH I'VE EVER SEEN SHOWS THAT THERE'S NO DIFFERENCE IN PERFORMANCE BETWEEN LOAD AND NOLOAD FUNDS UNTIL YOU ADD IN THE SALES LOADS SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS ONCE LOADS ARE ACCOUNTED FOR THE BROKERSOLD FUNDS TEND TO LAG THE MORE YOUR PRESENTATIONS MAKE TRACK RECORD A CRITICAL VARIABLE THE MORE CLEARLY YOU TELL THE INVESTOR TO JUST GO BUY MONEY MAGAZINE'S TOPPERFORMING NOLOAD FUND MR MURRAY TELLS BROKERS TO SELL THEIR FUNDS IN THE FACE OF SUCH EVIDENCE BROKERS OFTEN RESORT TO TELLING CLIENTS TO IGNORE THE BOTTOM LINE YOU CAN'T ARGUE WITH PERFORMANCE NUMBERS SO IT'S EASIER FOR THE BROKER TO SAY DON'T LOOK AT PERFORMANCE TRUST ME TO HELP YOU CHOOSE A FUND' SAYS MR MARKESE SOMETIMES THE BROKERS EVEN FIGHT BACK WITH A FEW STATISTICS OF THEIR OWN TAKE A RECENT STUDY FROM DALBAR FINANCIAL SERVICES A COMPANY THAT PRODUCES MUTUALFUND MARKETING INFORMATION AND RESEARCH FOR ORGANIZATIONS THAT RELY ON BROKERS AND OTHER SALESPEOPLE TO DISTRIBUTE THEIR FUNDS THE DALBAR STUDY PURPORTS TO SHOW THAT NOLOAD FUND INVESTORS UNDERPERFORM LOAD INVESTORS HOWEVER IT DOESN'T ACTUALLY COMPARE PERFORMANCE RATHER IT MEASURES RETENTION RATES OR HOW LONG INVESTORS HOLD ON TO THEIR MUTUAL FUNDS ALTHOUGH IT DOESN'T SPECIFY HOW THOSE RATES ARE MEASURED ACCORDING TO DALBAR LOADFUND INVESTORS HOLD ONTO THEIR MUTUAL FUNDS FOR AN AVERAGE OF 4884 MONTHS COMPARED WITH AN AVERAGE 2184 MONTHS FOR NOLOAD INVESTORS THE RESULTS ARE BASED ON DALBAR'S PROPRIETARY DATA BASE OF FUNDS FOR THE NEARLY 10YEAR PERIOD BETWEEN JAN 1 1984 AND SEPT 30 1993 BASED ON THESE RETENTION RATES THE STUDY CONCLUDES THAT INVESTORS WHO BUY MUTUAL FUNDS FROM BROKERS WERE IN THE MARKET LONGER AND THEREFORE ENJOYED HIGHER RETURNS IN CONTRAST DIRECT BUYERS WERE MORE LIKELY TO CHURN THEIR ACCOUNTS WHICH RESULTED IN LOWER RETURNS THE STUDY SAYS BUT THAT DOESN'T WASH WITH MARTIN J GRUBER CHAIRMAN OF THE FINANCE DEPARTMENT AT THE STERN SCHOOL OF BUSINESS AT NEW YORK UNIVERSITY THEY'RE MAKING AN UNWARRANTED CONCLUSION HE SAYS FOR ONE THING THE STUDY ASSUMES THAT PEOPLE WITH NOLOAD FUNDS GOT OUT OF THE MARKET HE NOTES IN REALITY THEY MAY HAVE MOVED INTO OTHER STOCK FUNDS FURTHER SAYS MR GRUBER IT'S NOT SURPRISING THAT THE AVERAGE DOLLAR REMAINED INVESTED LONGER IN LOAD FUNDS BUT THIS MAY BE MORE A FUNCTION OF SURRENDER CHARGES THAT PENALIZE INVESTORS FOR TAKING THEIR MONEY OUT OF SUCH FUNDS THAN A REFLECTION OF PRUDENT HANDHOLDING ON THE PART OF THE BROKER WILL GOETZMANN A FINANCE PROFESSOR AT COLUMBIA UNIVERSITY BUSINESS SCHOOL WHO SPECIALIZES IN MUTUALFUND PERFORMANCE AND ASSET FLOWS SAYS IT'S IMPOSSIBLE TO TRACK INDIVIDUAL INVESTORS USING DALBAR'S METHODS MR GOETZMANN SAYS THAT CURRENT RESEARCH ON CASH FLOWS IN AND OUT OF MUTUAL FUNDS SHOWS THAT WHILE MONEY POURS QUICKLY INTO FUNDS WITH WINNING RECORDS IT OOZES RATHER SLOWLY OUT OF LOSING FUNDS HE LIKENS IT TO A ROACH MOTEL EFFECT INVESTORS WHO BUY LOAD FUNDS MAY BE LESS KNOWLEDGEABLE AND MORE PRONE TO STAY IN LOSING FUNDS LONGER HE SAYS STILL JERRY TUCCILLE SENIOR FINANCIAL ANALYST AT DALBAR DEFENDS THE STUDY ASSUMING LOADFUND INVESTORS DID TEND TO STAY PUT LONGER THUS ENJOYING MORE OF THE BENEFITS OF THE PAST DECADE'S BULL MARKET THEY WOULD HAVE REAPED RETURNS OF 682 A YEAR ON A COMPOUND ANNUAL BASIS MEANWHILE THE RESTLESSNESS DALBAR SEES AMONG NOLOAD FUND INVESTORS WOULD HAVE REDUCED THEIR RETURNS TO JUST 561 COMPOUNDED ANNUALLY THE STUDY SHOWS ACTUAL PERFORMANCE FIGURES REVERSE THOSE STANDINGS HOWEVER ACCORDING TO MORNINGSTAR THE AVERAGE COMPOUNDED ANNUAL RETURN FOR NOLOAD FUNDS WAS 1238 FOR THE 10 YEARS ENDED DEC 31 1993 A NOTCH ABOVE THE 1216 AVERAGE FOR BROKERSOLD FUNDS THOSE RESULTS DON'T ACCOUNT FOR LOADS WHICH WOULD MAKE THE BROKERSOLD FUNDS LOOK EVEN WORSE INCIDENTALLY BOTH GROUPS DID EXTREMELY POORLY RELATIVE TO SOMEONE WHO JUST BOUGHT AND HELD A FUND THAT TRACKED THE STANDARD & POOR'S 500 INDEX THIS LOWCOST INVESTMENT STRATEGY WOULD HAVE PRODUCED COMPOUND ANNUAL RETURNS OF 1507 IN THE 198493 PERIOD INVESTORS WHO RELY ON PERFORMANCE DATA TO PICK AND CHOOSE AMONG MUTUAL FUNDS SHOULD BE CAREFUL NOT TO READ MORE INTO THOSE NUMBERS THAN IS WARRANTED HOWEVER FOR INSTANCE TO AVOID THE APPLESTOORANGES PROBLEM ONLY JUDGE PERFORMANCE RELATIVE TO SIMILAR INVESTMENTS SAYS MR MARKESE AND TO CHECK THE INTEGRITY OF THE DATA EXPERTS SAY INVESTORS SHOULD MAKE SURE THE NUMBERS ARE SUPPLIED BY A THIRD PARTY SUCH AS MORNINGSTAR OR LIPPER COVER A MEANINGFUL STRETCH OF TIME PREFERABLY FIVE YEARS OR LONGER AND HAVE BEEN ADJUSTED FOR ALL FEES EXPENSES AND POTENTIAL LOADS IT'S ALSO USEFUL TO FIND OUT HOW A FUND DOES IN BOTH BULL AND BEAR MARKETS A GOOD BROKER WILL BE HAPPY TO SUPPLY THIS INFORMATION AND WILL WELCOME AN INVESTOR'S DESIRE TO BETTER EDUCATE HIMSELF SAYS JENNIFER STRICKLAND A CONSULTANT AT MORNINGSTAR A LOT OF FINANCIAL PLANNERS AND BROKERS HAVE TOLD ME THAT THEIR BEST CUSTOMERS ARE THE BESTEDUCATED CUSTOMERS SHE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR TAKE THEIR EYES OFF THE REARVIEW MIRROR WSJ FEB 4 1994 9401200063 YY94 MM02 9402040027 940119 REVIEW & OUTLOOK EDITORIAL ASIDES MR WALSH'S METER INDEPENDENT COUNSEL LAWRENCE WALSH'S SEVENYEAR IRANCONTRA PROBE FINALLY ENDED YESTERDAY WITH THE RELEASE OF A 566PAGE REPORT THAT CHARGED THE REAGAN WHITE HOUSE COVERED UP THE SCANDAL IT REMAINS TO BE SEEN WHETHER THE WALSH PROSECUTION IN FACT SURFACED ANYTHING SIGNIFICANT THAT HASN'T ALREADY BEEN REPORTED BY THE TOWER COMMISSION OR CONGRESSIONAL HEARINGS IN 1987 NONETHELESS TAXPAYERS PAID DEARLY FOR THE WALSH MARATHON HE SPENT AT LEAST 37 MILLION ON RESEARCH LAWYERS AND OFTEN QUESTIONABLE EXPENSES THAT BREAKS DOWN TO 65371 FOR EVERY ONE OF THE 566 PAGES IN HIS FINAL REPORT ASSUMING 250 WORDS A PAGE HIS REPORT COST AN EYEPOPPING 2615 A WORD A NEW STANDARD NO DOUBT FOR RUNNING THE METER ON A LITIGATION IDLING IN PARK SEE RELATED LETTER LETTERS TO THE EDITOR TUTORIALS SUGGESTED WSJ FEB 4 1994 9401190179 YY94 MM02 9402040010 940111 PRICING HEALTH CARE HOW TO OPPOSE THE HEALTH PLAN AND WHY BY WILLIAM KRISTOL HEALTH CARE POLITICS ARE NOW AT A STALEMATE PUBLIC ENTHUSIASM FOR THE PRESIDENT'S PLAN HAS PRECIPITOUSLY DECLINED BUT ITS OPPONENTS HAVE FAILED TO CAPITALIZE ON ITS OBVIOUS FLAWS AND KILL IT OUTRIGHT THIS IS JUST A TEMPORARY LULL HOWEVER THE PLAN IS DUE FOR RESUSCITATION UNLESS A STRONG COUNTEROFFENSIVE IS MOUNTED IN POLITICAL TERMS THAT TASK FALLS MAINLY TO MEMBERS OF THE REPUBLICAN PARTY WHAT FORM SHOULD THEIR OPPOSITION TAKE A SIMPLE GREENEYESHADE CRITICISM OF THE PRESIDENT'S HEALTH PLAN ON THE GROUNDS THAT ITS NUMBERS DON'T ADD UP THEY DON'T OR THAT IT COSTS TOO MUCH IT DOES OR THAT IT WILL KILL JOBS AND DISRUPT THE ECONOMY IT WILL IS FINE AS FAR AS IT GOES BUT IT IS NOT ENOUGH SUCH OPPOSITION CAN ONLY WIN CONCESSIONS ON THE WAY TO A LEAST BAD COMPROMISE BUT PASSAGE OF THE CLINTON HEALTH CARE PLAN IN ANY FORM WOULD BE DISASTROUS IT WOULD GUARANTEE AN UNPRECEDENTED FEDERAL INTRUSION INTO THE AMERICAN ECONOMY ITS SUCCESS WOULD SIGNAL A REBIRTH OF CENTRALIZED WELFARESTATE POLICY AT THE VERY MOMENT THAT SUCH POLICY IS BEING PERCEIVED AS A FAILURE IN OTHER AREAS AND NOT LEAST IT WOULD DESTROY THE PRESENT BREADTH AND QUALITY OF THE AMERICAN HEALTH CARE SYSTEM THE WORLD'S FINEST EVEN WITH SO MUCH AGAINST IT HOWEVER THE CLINTON PLAN WILL NOT BE EASY TO DEFEAT TO GET BIPARTISAN BACKING AND LURE WAYWARD REPUBLICANS MR CLINTON WILL OF COURSE MAKE CONCESSIONS MOST IMPORTANT IN TWO WEEKS HE WILL GIVE A NATIONALLY TELEVISED STATE OF THE UNION ADDRESS THAT WILL NO DOUBT BE DEVOTED TO ADVERTISING HIS PLAN'S GLORIES AND REMINDING HIS AUDIENCE HOW SUPPOSEDLY PERILOUS THEIR OWN HEALTH SECURITY REMAINS INDEED EVER MORE FEARMONGERING SHOULD BE EXPECTED A WHITE HOUSE OFFICIAL WAS QUOTED LAST WEEK SAYING WE NEED TO RETURN TO THE CRISIS ATMOSPHERE THE NEXT 100 DAYS ARE THUS CRITICAL FOR OPPONENTS OF THE PLAN THE RISK IS THAT THE PRESIDENT WILL RECAPTURE THE HIGH GROUND ON HEALTH CARE LEAVING THEM MERELY TO COMPLAIN ABOUT FLAWED FINANCING AND CUMBERSOME BUREAUCRACY BUT THE OPPORTUNITY ALSO EXISTS TO WRENCH THE DEBATE FROM THE PRESIDENT BY REDEFINING BOTH WHAT IS AT STAKE AND HOW REFORM SHOULD PROCEED FIRST OPPONENTS MUST INSISTENTLY SHOW THAT THE CLINTON PLAN IS DAMAGING TO THE QUALITY OF AMERICAN MEDICINE AND TO THE RELATIONSHIP BETWEEN PATIENT AND DOCTOR SECOND THEY MUST AGGRESSIVELY DEBUNK THE ADMINISTRATION'S CRISIS RHETORIC WHICH IN ANY CASE IS MERELY A JUSTIFICATION FOR ITS RADICAL REFORMS EVEN THE DEMOCRATIC CHAIRMAN OF THE SENATE FINANCE COMMITTEE SEN DANIEL PATRICK MOYNIHAN ACKNOWLEDGED OVER THE WEEKEND THAT WE DON'T HAVE A HEALTH CARE CRISIS IN THIS COUNTRY REPUBLICANS SHOULD HAVE THE COURAGE TO SEND THE SAME MESSAGE HAVING SHOWN THAT THE CLINTON PLAN IS RADICALLY DANGEROUS AND FUNDAMENTALLY UNNECESSARY REPUBLICANS SHOULD ACT WITH DISPATCH TO ADVANCE A MEANINGFUL REFORM ALTERNATIVE NOT A COMPETING PLAN BUT A SET OF PROPOSALS TARGETED AT THE SPECIFIC AND LIMITED PROBLEMS THAT ARE OF GREATEST CONCERN TO MOST AMERICANS THE CHIEF VIRTUE OF SMALLSCALE FOCUSED REFORMS IS THAT MANY OF THEM ALREADY ENJOY STATED SUPPORT FROM LARGE NUMBERS OF REPUBLICAN AND DEMOCRATIC LAWMAKERS INDEED AN INCREMENTAL APPROACH TO HEALTH CARE REFORM WAS ADVOCATED AS RECENTLY AS 1992 BY NOWTREASURY SECRETARY LLOYD BENTSEN WHOSE SENATE FINANCE COMMITTEE REPORTED OUT ONE SET OF PROPOSALS AT THE TIME SEN GEORGE MITCHELL D MAINE APPARENTLY RECOGNIZING THAT SUCH A PLAN WOULD ROB THE DEMOCRATIC PARTY OF A KEY ELECTIONYEAR ISSUE STOPPED IT FROM COMING TO A FLOOR VOTE TO BLOCK SUCH MEASURES NOW HOWEVER WOULD BE TO STAND IN THE WAY OF REFORMS THAT MOST AMERICANS WOULD WELCOME SUCH A POSITION ON THE PART OF DEMOCRATS WOULD IN TURN UNDERMINE THE ALREADY THIN RATIONALE FOR THE PRESIDENT'S ELABORATE NETWORK OF REGULATION AND PRICE CONTROLS IN SUM OPPONENTS OF THE CLINTON HEALTH PLAN SHOULD IMMEDIATELY PROPOSE SIMPLE FEDERAL LEGISLATION THAT FIXES THE MOST SERIOUS PROBLEMS IN AMERICAN HEALTH CARE AND FORCE THE PRESIDENT TO EXPLAIN WHY HE SAYS NO TO IT BELOW SOME DISCRETE HEALTH CARE REFORMS THAT SHOULD BE ADVANCED VIGOROUSLY AND IF NEED BE REPEATEDLY IN CONGRESS OVER THE NEXT FEW MONTHS REFORM INSURANCE MARKETS TO MAKE HEALTH INSURANCE STABLE AND PORTABLE MINOR CHANGES TO EXISTING COBRA LEGISLATION WOULD ALLOW CURRENTLY INSURED WORKERS WHATEVER THE NUMBER OF EMPLOYEES AT THEIR COMPANY TO CONTINUE THEIR HEALTH COVERAGE EVEN AFTER THEY LEAVE THEIR JOBS BY PAYING PREMIUMS DIRECTLY TO THE INSURER THIS REFORM WOULD GUARANTEE ACCESS TO UNINTERRUPTED HEALTH COVERAGE TO ALL AMERICANS WHO ARE NOW DEPENDENT ON THEIR EMPLOYER FOR INSURANCE ADDITIONAL SMALL REFORMS COULD EXTEND THE SAME GUARANTEE TO INDIVIDUALS ONCE COVERED AS DEPENDENTS A WOMAN WHO SEPARATES FROM HER SPOUSE FOR EXAMPLE LIMIT PREEXISTINGCONDITION RESTRICTIONS UNDER EMPLOYER HEALTH PLANS IF CONGRESS ADOPTS MEASURES TO ASSURE EVERYONE ALREADY IN THE HEALTH INSURANCE SYSTEM THAT HIS OR HER COVERAGE CANNOT BE DENIED IN THE FUTURE EVEN WITH A CHANGE OF JOBS OR A MOVE THE WIDESPREAD FEAR OF BEING DROPPED OR TURNED DOWN BY AN INSURANCE PLAN BECAUSE OF A SEVERE ILLNESS WILL EVAPORATE THESE PROVISIONS COULD ALSO GUARANTEE THAT INDIVIDUALS WITH A PREEXISTING CONDITION WHO HAVE HEALTH INSURANCE BUT HAVE TO CHANGE INSURANCE CARRIERS WOULD BE CHARGED NO MORE FOR THEIR NEW PLAN THAN THE NORMAL PREMIUM RATE CHARGED TO ALL NEW CUSTOMERS ELIMINATE BARRIERS TO SMALLBUSINESS INSURANCE POOLS ACCORDING TO A STUDY BY THE EMPLOYEE BENEFIT RESEARCH INSTITUTE 20 TO 30 OF EMPLOYEES AT FIRMS THAT EMPLOY FEWER THAN 100 PEOPLE ARE WITHOUT HEALTH INSURANCE IF EXISTING REGULATORY BARRIERS INVOLVING GEOGRAPHICAL PROXIMITY AND COMMON BUSINESS PRACTICE REQUIREMENTS WERE ELIMINATED MORE BUSINESS GROUPS COULD PURCHASE HEALTH INSURANCE COLLECTIVELY THROUGH POOLS OR TAXEXEMPT TRUSTS INCREASING THEIR BARGAINING POWER AND DRAMATICALLY REDUCING THEIR COSTS LOWER INSURANCE PREMIUMS BY MAKING THEM TAX DEDUCTIBLE TODAY PEOPLE WHO RECEIVE HEALTH COVERAGE THROUGH THEIR EMPLOYERS ARE NOT SUBJECT TO TAXATION ON THOSE BENEFITS BY CONTRAST THE SELFEMPLOYED WHO PURCHASE THEIR OWN INSURANCE ARE GIVEN ONLY A 25 TAX DEDUCTION MAKING HEALTH INSURANCE FULLY DEDUCTIBLE FOR BOTH THE SELFEMPLOYED AND WORKERS WHOSE EMPLOYERS DO NOT PROVIDE IT WILL LOWER THE PRICE OF HEALTH CARE INSURANCE AND MAKE IT MORE ACCESSIBLE PERMIT THE ESTABLISHMENT OF MEDICAL SAVINGS ACCOUNTS CURRENT TAX LAW PERMITS EMPLOYEES TO SET ASIDE INCOME IN A TAXEXEMPT ACCOUNT TO BE USED FOR MEDICAL EXPENSES A SLIGHT CHANGE TO THE TAX CODE ALLOWING SUCH ACCOUNTS TO ROLL OVER WOULD EFFECTIVELY PERMIT THE ESTABLISHMENT OF MEDICAL SAVINGS ACCOUNTS FURTHER SMALL CHANGES WOULD PERMIT THE SELFEMPLOYED TO HAVE THEIR OWN MEDICAL IRAS IF SUCH ACCOUNTS WERE USED IN CONCERT WITH LOWERPREMIUM CATASTROPHIC INSURANCE PLANS INDIVIDUALS WOULD HAVE MORE CONTROL OVER THEIR HEALTH CARE SPENDING AND COSTS WOULD COME DOWN REDUCE COSTS THROUGH MALPRACTICE REFORM MEDICAL MALPRACTICE INSURANCE IS AMONG THE FASTEST GROWING COMPONENTS OF A PHYSICIAN'S BUSINESS COSTS PROPOSALS TO ALTER THIS PERVERSE ASPECT OF TORT LAW ARE A COMMON COMPONENT OF SEVERAL CURRENT AND PAST HEALTH CARE REFORM PLANS SIMPLIFY HEALTH CARE PAPERWORK THROUGH ADMINISTRATIVE REFORMS THE BURDEN OF HEALTH CARE ADMINISTRATION COULD BE EASED BY THE CREATION OF A STANDARD CLAIMS FORM AND DATA SET A HOST OF OTHER STEPS TO REDUCE HEALTH CARE FRAUD AND IMPROVE INFORMATION COLLECTION HAVE ALREADY BEEN PROPOSED IN CONGRESS THE COST SAVINGS OF ALL THESE MEASURES WOULD BE SUBSTANTIAL REDUCE MEDICAID AND MEDICARE EXPENSES BY LIFTING THE REGULATORY BURDEN ON STATES REPUBLICAN GOVERNORS IN CALIFORNIA WISCONSIN MASSACHUSETTS AND ELSEWHERE HAVE ALREADY BEGUN TO REFORM HEALTH CARE BY ENACTING SOME OF THE MEASURES LISTED ABOVE AT THE STATE LEVEL FEDERAL REGULATIONS ON STATE MEDICAID AND MEDICARE PROGRAMS SHOULD BE STEEPLY ROLLED BACK TO GIVE GOVERNORS THE FLEXIBILITY TO SUPERVISE THEM AS THEY SEE FIT PROVIDE HEALTH INSURANCE TAX CREDITS OR VOUCHERS TO LOWINCOME FAMILIES FOR THOSE WORKING HEADS OF HOUSEHOLDS WHO ARE NOT POOR ENOUGH TO QUALIFY FOR MEDICAID BUT STILL FIND THE COST OF AN INSURANCE PLAN BEYOND THEIR REACH A GOVERNMENT VOUCHER OR TAXCREDIT SYSTEM COULD HELP DEFRAY THE COST OF ADEQUATE COVERAGE THIS PROPOSAL IS NOT WITHOUT SOME EXPENSE BUT MUCH OF IT COULD BE FINANCED BY REDIRECTING FEDERAL PAYMENTS ALREADY MADE TO STATES FOR HOSPITAL COSTS INCURRED THROUGH THE TREATMENT OF LOWINCOME INDIVIDUALS WHATEVER FORM IT TAKES A TAXCREDIT OR VOUCHER SYSTEM WOULD INCREASE ACCESS TO HEALTH INSURANCE FOR LOWINCOME AMERICANS WITHOUT A VAST SYSTEM OF EMPLOYER MANDATES PRICE CONTROLS GOVERNMENT RATIONING AND MANDATORY ALLIANCES THERE ARE OTHER POSSIBLE REFORMS OF COURSE BUT THESE AT LEAST POINT IN THE RIGHT DIRECTION TO REPEAT THE PRESIDENT'S PLAN WOULD HAVE A SERIOUSLY DETRIMENTAL EFFECT ON THE QUALITY OF AMERICAN MEDICAL CARE AND THE PRESIDENT'S PLAN IS UNNECESSARY THERE IS NO HEALTH CARE CRISIS AND THE REFORMS SUGGESTED ABOVE SHOW HOW REAL PROBLEMS CAN BE DIRECTLY ADDRESSED THAT IS THE MOST EFFECTIVE ARGUMENT THAT OPPONENTS OF THE CLINTON PLAN CAN MAKE IN THE OPENING MONTHS OF 1994 MR KRISTOL IS CHAIRMAN OF THE PROJECT FOR THE REPUBLICAN FUTURE THIS ARTICLE IS ADAPTED FROM ITS HEALTH CARE STRATEGY MEMORANDUM RELEASED THIS WEEK SEE RELATED LETTER LETTERS TO THE EDITOR INSURANCE IS THE CAUSE OF THE CRISIS WSJ FEB 4 1994 9401110045 YY94 MM02 9402030189 940203 TECHNOLOGY & HEALTH SUGAR AND ASPARTAME HAVE NO EFFECT ON CHILDREN'S BEHAVIOR STUDY FINDS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SUGAR AND ARTIFICIAL SWEETENERS HAVE NO EFFECT ON YOUNG CHILDREN'S BEHAVIOR OR THINKING ACCORDING TO A RIGOROUS STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE THE NEW STUDY FUNDED IN PART BY THE FEDERAL GOVERNMENT IS EXPECTED TO DRAW MUCH ATTENTION BECAUSE RESEARCHERS DOCTORS AND PARENTS HAVE ARGUED FOR YEARS OVER CLAIMS THAT CERTAIN CHILDREN CAN BE ADVERSELY AFFECTED BY CONSUMING FOODS CONTAINING SUGAR OR THE ARTIFICIAL SWEETENER ASPARTAME THE DEBATE HAS FLARED UNABATED DESPITE SEVERAL RECENT STUDIES THAT FAILED TO LINK SUGAR USE AND HYPERACTIVITY IN YOUNG CHILDREN THE RESEARCH CONDUCTED BY MEDICAL INVESTIGATORS AT VANDERBILT UNIVERSITY IN NASHVILLE TENN AND THE UNIVERSITY OF IOWA COLLEGE OF MEDICINE IN IOWA CITY WASN'T DESIGNED TO ADDRESS TRANSIENT INCREASES IN ENERGY LEVELS OR IRRITABILITY THAT MAY RESULT SOON AFTER CHILDREN EAT AN ICECREAM CONE OR CHOCOLATE CAKE INSTEAD THE STUDY CLOSELY MONITORED A GROUP OF 48 CHILDREN DURING A NINEWEEK PERIOD TO MEASURE WHETHER THEY BEHAVED OR PERFORMED MENTAL TASKS DIFFERENTLY DEPENDING ON WHETHER THEY ATE FOOD WITH OR WITHOUT SUGAR OR ASPARTAME THE RESULTS WERE RESOUNDINGLY DEFINITIVE EVEN WHEN INTAKE EXCEEDS TYPICAL DIETARY LEVELS NEITHER DIETARY SUCROSE NOR ASPARTAME AFFECTS CHILDREN'S BEHAVIOR OR COGNITIVE FUNCTION SAID THE REPORT WHICH WAS HEADED BY MARK L WOLRAICH OF VANDERBILT'S CHILD DEVELOPMENT CENTER IN THE STUDY THE RESEARCHERS RECRUITED THE FAMILIES OF 25 PRESCHOOL CHILDREN AGED THREE TO FIVE WHO AGREED TO ADHERE RIGIDLY TO SPECIFIC DIETS FOR THEIR CHILDREN DURING THE NINEWEEK PERIOD AT THE BEGINNING OF EACH WEEK THE FAMILIES WERE PROVIDED WITH SPECIALLY DESIGNED FOODS AND DRINKS FOR THREE WEEKS AT A TIME THE CHILDREN ATE A DIET CONTAINING SUGAR ASPARTAME OR SUGARFREE SACCHARIN THOUGH THE PARENTS AND THE RESEARCHERS DIDN'T KNOW WHICH DIET THE CHILDREN WERE CONSUMING NONE OF THE CHILDREN IN THIS GROUP WERE DESCRIBED BY THEIR PARENTS AS BEING ESPECIALLY SENSITIVE TO THE EFFECTS OF SUGAR THE RESEARCHERS ALSO RECRUITED A SEPARATE GROUP OF 23 CHILDREN AGED SIX TO 10 WHOSE FAMILIES DID BELIEVE SUGAR AFFECTED THEIR CHILDREN'S ACTIONS ABILITY TO CONCENTRATE OR PERFORM MENTAL ACTIVITIES BOTH SETS OF CHILDREN UNDERWENT EXTENSIVE TESTS FOR MENTAL PERFORMANCE AND BEHAVIOR WITH EVALUATIONS CONDUCTED ONCE A WEEK AT THE CHILDREN'S HOMES IN ALMOST EVERY CATEGORY THE CHILDREN'S CUMULATIVE RESULTS VARIED LITTLE NO MATTER WHAT THEIR DIET INDEED THE ONLY STATISTICALLY SIGNIFICANT DIFFERENCE OCCURRED AMONG THE PRESCHOOLAGE CHILDREN WHO ACTUALLY PERFORMED BETTER IN COGNITIVE TESTS CONDUCTED BY THEIR PARENTS DURING THE WEEKS THEY CONSUMED A DIET CONTAINING SUGAR THAN THEY DID DURING THE THREE WEEKS WHEN THEIR DIET CONTAINED ASPARTAME OR SACCHARIN DR WOLRAICH WHO TREATS AND STUDIES CHILDREN DIAGNOSED AS BEING HYPERACTIVE SAID PARENTS WHO BELIEVE SUGAR CAUSES PROBLEMS FOR THEIR CHILDREN SHOULD INVESTIGATE OTHER POSSIBLE CAUSES INSTEAD HE SAID THE CHILDREN'S PROBLEMS MIGHT RESULT FROM GENETIC FACTORS FROM PROBLEMS IN SCHOOL OR WITH THEIR PEERS ISSUES AT HOME OR ANY NUMBER OF A BROAD RANGE OF THINGS THE RESEARCH RECEIVED 10 OF ITS FUNDING FROM THE NUTRITION FOUNDATIONINTERNATIONAL LIFE SCIENCE INSTITUTE OF WASHINGTON WHICH REPRESENTS THE INTERESTS OF VARIOUS FOOD COMPANIES DR WOLRAICH SAID THE INSTITUTE'S GRANT HAD NO EFFECT ON THE STUDY'S DESIGN OR OUTCOME WHICH WAS LARGELY FUNDED AND OVERSEEN BY THE NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT IN BETHESDA MD IN A COMMENTARY ACCOMPANYING THE STUDY MARCEL KINSBOURNE A RESEARCHER AT TUFTS UNIVERSITY OUTSIDE BOSTON PRAISED THE NEW RESEARCH'S DESIGN DR KINSBOURNE NOTED THAT WHILE PREVIOUS REPORTS HAVE DISCOUNTED THE EFFECT OF SUGAR ON CHILDREN'S BEHAVIOR MANY PARENTS TEACHERS AND DOCTORS CONTINUE TO ATTRIBUTE PROBLEMS TO SUGAR OR OTHER FOOD ADDITIVES DR KINSBOURNE SAID THAT TAKEN TOGETHER THE RESEARCH SUGGESTS THAT ANY ADVERSE EFFECT OF SUGAR IS BY NO MEANS AS SEVERE OR PREVALENT AS UNCONTROLLED OBSERVATIONS AND OPINION WOULD SUGGEST SPECIFICALLY THERE IS NO EVIDENCE THAT SUGAR ALONE CAN TURN A CHILD WITH NORMAL ATTENTION INTO A HYPERACTIVE CHILD 9402030188 940203 COMMODITIES FUEL PRICES CONTINUING RALLY RISE SHARPLY AMID FEARS US COLD SPELL IS STRAINING SUPPLY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUED COLD WEATHER IN THE US AND BULLISH DATA ON FUEL SUPPLIES LED THE RALLY IN WORLD OIL MARKETS INTO A SECOND DAY FUEL PRICES SURGED AGAIN IN FUTURES TRADING IN BOTH NEW YORK AND LONDON IN THE WAKE OF THE AMERICAN PETROLEUM INSTITUTE'S LATEST WEEKLY REPORT ON US OIL INVENTORIES THE API REPORT ISSUED TUESDAY AFTER THE CLOSE OF TRADING SHOWED A DROP OF 74 MILLION BARRELS LAST WEEK IN US INVENTORIES OF DISTILLATE FUELS DISTILLATES INCLUDE HOME HEATING OIL AND PRICES OF THAT FUEL ROSE SHARPLY YESTERDAY IN HEAVY TRADING THAT HELPED TO FIRM UP MARKETS FOR OTHER FUELS AND FOR CRUDE OIL ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY WHICH HAD JUMPED MORE THAN TWO CENTS A GALLON TUESDAY GAINED 175 CENTS A GALLON TO SETTLE AT 5358 CENTS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE FUTURES PRICES OF GAS OIL HEATING OIL CLOSED AS MUCH AS 475 A TON HIGHER ALAN H LEVINE AN OIL ECONOMIST AND OIL TRADER WITH SMITH BARNEY SHEARSON HAD TOLD HIS CLIENTS AFTER THE LATETUESDAY API REPORT THAT SUPPLIES OF DISTILLATES WERE TIGHT AND THAT HIGHER HEATINGOIL PRICES WERE LIKELY POSSIBLY RISING AS HIGH AS 54 CENTS A GALLON YESTERDAY'S HIGH IN INTRADAY TRADING WAS 538 CENTS STILL MR LEVINE SAID I WAS SOMEWHAT SURPRISED BY THE VELOCITY OF THE HEATING OIL MOVE SOME OF HEATING OIL'S STRENGTH CONTINUED TO SPILL OVER INTO OTHER PETROLEUM MARKETS ALTHOUGH CRUDE OIL FOR MARCH DELIVERY FAILED TO MATCH ITS TUESDAY RUNUP OF 73 CENTS A BARREL IT BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 16 A BARREL IN EARLY TRADING YESTERDAY THE MARCH CRUDE SETTLED AT 1604 UP 12 CENTS FOR THE DAY THAT WAS THE FIRST TIME THE NEARMONTH FUTURES CONTRACT HAD SETTLED ABOVE 16 SINCE LATE NOVEMBER JUST BEFORE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECIDED NOT TO CUT OUTPUT TO TRIM THE WORLD OIL GLUT BUT HAS THE WEATHERRELATED RALLY BROUGHT ONLY A TEMPORARY RESPITE OR AN END TO THE BEARISH SENTIMENT THAT DROVE WORLDOIL PRICES TO THE NEARCOLLAPSE OF RECENT MONTHS THERE IS DEBATE AMONG TRADERS ANALYSTS AND OIL ECONOMISTS OVER THE ANSWER MR LEVINE OF SMITH BARNEY SHEARSON LOOKS FOR A PRICING PULLBACK ONCE THE WEATHER THAWS BUT EDWARD KRAPELS PRESIDENT OF ENERGY SECURITY ANALYSIS ESTIMATED THAT THE COLD WEATHER ALREADY HAS HAD AN IMPACT OF AS MUCH AS 500000 TO 600000 BARRELS A DAY ON THE PREVIOUS SURPLUS OF WORLD SUPPLIES EXCEPT FOR POSSIBLY A LITTLE WEAKNESS AFTER THE NEXT WEEK OR SO THE WORST IS OVER FOR THE OIL MARKETS MR KRAPELS SAID I DON'T THINK OPEC WILL HAVE TO CUT OUTPUT WHEN IT MEETS IN MARCH IN OTHER COMMODITY MARKETS YESTERDAY COTTON COTTONFUTURES PRICES FELL AFTER SETTING NEW CONTRACT HIGHS FOR 14 OF THE PAST 15 TRADING SESSIONS AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS DOWN 169 CENTS TO 7565 CENTS A POUND THIS IS NOTHING MORE THAN A CORRECTION AFTER THE EXPLOSIVE UP MOVE THAT WE'VE HAD SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON THROUGHOUT THIS MOVE THE US HAS REMAINED COMPETITIVELY PRICED WITH OTHER WORLD GROVES COTTON PRICES HAVE RISEN BECAUSE GLOBAL SUPPLIES OF HIGHQUALITY COTTON ARE EXTREMELY LIMITED THE US IS ONE OF THE FEW TRADITIONAL SUPPLIERS OF COTTON THAT STILL HAS HIGHQUALITY STOCKS TO OFFER AND COTTON PRICES OVERSEAS HAVE BEEN RISING FASTER THAN US PRICES THUS MS KAUL SAID SHE EXPECTS THE MARKET TO RESUME ITS UPWARD TREND AS SOON AS FABRIC COMPANIES AND OTHER CONSUMERS BEGIN TO BUY US COTTON GRAINS & SOYBEANS PRICES OF WHEATFUTURES CONTRACTS ROSE AMID CONTINUING SPECULATION THAT CHINA IS INTERESTED IN BUYING 184 MILLION BUSHELS OF SUBSIDIZED US WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE 45 CENTS A BUSHEL TO SETTLE AT 37475 A BUSHEL SOYBEAN PRICES SLIPPED AS BENEFICIAL RAIN IN BRAZIL AND ARGENTINA INCREASED THE PROSPECTS FOR A BUMPER SOYBEAN CROP IN SOUTH AMERICA 9402030187 940203 MONEYMARKET YIELDS SLIPPED ASSETS FELL IN MOST RECENT WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS EDGED LOWER AND ASSETS FELL IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 271 FROM 272 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS WAS UNCHANGED AT 268 WHILE THE 30DAY SIMPLE YIELD SLID TO 269 FROM 271 THE 30DAY COMPOUND YIELD EDGED DOWN TO 273 FROM 274 ASSETS OF THE 637 TAXABLE FUNDS SURVEYED PLUNGED 1183 BILLION TO 48643 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR ALMOST ALL OF THE OUTFLOW AS THEY WITHDREW 1113 BILLION WHILE INDIVIDUAL INVESTORS TOOK OUT THE REMAINING 6989 MILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE OUTFLOW TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S WARNING ON MONDAY THAT SHORTTERM INTEREST RATES WOULD RISE FOR INSTITUTIONAL INVESTORS YIELDS ON 90DAY TREASURY BILLS AND OTHER SHORTTERM SECURITIES ARE ALREADY MORE ATTRACTIVE THAN MONEYMARKET YIELDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS LENGTHENED BY ONE DAY TO 61 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 186 FROM 177 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 291 FOR SOMEONE PAYING 36 IN TAXES AND TO 308 FOR THOSE PAYING 396 ASSETS OF THE 342 TAXEXEMPT FUNDS SURVEYED TWO MORE THAN THE PREVIOUS WEEK TOTALED 10940 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO 57 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9402030186 940203 WALGREEN POSTS SALES GAINS DEERFIELD ILL WALGREEN CO SAID SALES DURING JANUARY AT STORES OPEN MORE THAN ONE YEAR CLIMBED 61 FROM JANUARY 1993 WALGREEN WHICH OPERATED 1897 DRUGSTORES IN JANUARY COMPARED WITH 1766 UNITS A YEAR EARLIER SAID TOTAL SALES CLIMBED 12 TO 7454 MILLION FROM 6635 MILLION 9402030183 940203 WHO'S NEWS BINKS MANUFACTURING CO BINKS MANUFACTURING CO FRANKLIN PARK ILL JOHN J SCHORNACK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KRAFTSEAL CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF SPRAY FINISHING AND COATINGAPPLICATION EQUIPMENT HE SUCCEEDS J MILTON MOON WHO DIED LAST NOVEMBER 9402030181 940203 INTERNATIONAL EURO DISNEY POSTS WIDER 1STPERIOD LOSS AS CREDITORS HOLD INCONCLUSIVE TALKS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS AS BANKERS HELD INCONCLUSIVE TALKS ABOUT ITS FATE EURO DISNEY SCA REPORTED THAT ITS NET LOSS FOR THE FISCAL FIRST QUARTER WIDENED BY 31 TO 553 MILLION FRANCS 94 MILLION OVER THE YEAREARLIER QUARTER BUT IN A SIGN THAT A NEW MANAGEMENT STRATEGY IS STARTING TO BRING RESULTS THE TROUBLED THEME PARK OUTSIDE PARIS SUCCEEDED IN PRUNING ITS BLOATED COSTS AS A RESULT ITS OPERATING LOSS WAS UNCHANGED EVEN THOUGH REVENUE FELL 12 AFTER THE PARK SLASHED ITS ADMISSION CHARGE AND OTHER PRICES IN A BID TO ATTRACT MORE VISITORS THE WIDER NET LOSS LARGELY REFLECTS HIGHER INTEREST EXPENSES THE RESULTS SHOW SOME ENCOURAGING SIGNS SAID CHARLES ALLEN AN ANALYST AT BROKERS NATWEST SELLIER IN LONDON IT'S MORE HEALTHY BUT IT'S STILL NOT HEALTHY ENOUGH EURO DISNEY WHICH IS 49 OWNED BY WALT DISNEY CO STILL FACES A SURVIVALTHREATENING PROBLEM RELATING TO ITS DEBT OF ABOUT 21 BILLION FRANCS INTEREST PAYMENTS ON THE DEBT ARE CURRENTLY FAR BEYOND THE RESORT'S FINANCIAL MEANS AND WALT DISNEY HAS SAID IT WILL CONTINUE FUNDING THE SHORTFALL ONLY UNTIL THE END OF MARCH AT A 10HOUR MEETING IN PARIS YESTERDAY IN A PAVILION NEAR THE PLACE DE LA CONCORDE REPRESENTATIVES OF EURO DISNEY'S 60 CREDITOR BANKS DISCUSSED THE RESORT'S PERILOUS FINANCIAL SITUATION WITHOUT REACHING ANY CONCLUSIONS BANKERS ATTENDING THE MEETING SAID AUDITORS KPMG PEAT MARWICK MADE A PRELIMINARY PRESENTATION DETAILING THE PARK'S SITUATION AND ITS POSSIBLE FUTURE DEVELOPMENT BUT IT WASN'T ABLE TO PRODUCE A FULL AUDIT OF EURO DISNEY AS HAD BEEN EXPECTED AND THE BANKERS ARE DUE TO RECONVENE IN MIDFEBRUARY TO RECEIVE A MORE COMPLETE REPORT BANKERS AND ANALYSTS BELIEVE EURO DISNEY'S DEBT MUST BE CUT BY AT LEAST 50 TO ENSURE THE RESORT'S LONGTERM VIABILITY WALT DISNEY ITSELF PRESENTED A BUSINESS PLAN TO CREDITORS LAST OCTOBER THAT CALLS FOR THE DEBT TO BE CUT BY ABOUT 11 BILLION FRANCS MORE THAN HALF OF WHICH WOULD BE THROUGH AN INJECTION OF FRESH CAPITAL ACCORDING TO SEVERAL BANKERS PRESENT AT YESTERDAY'S CREDITORS' MEETING KPMG'S INITIAL FINDINGS LARGELY MESH WITH DISNEY'S OWN CALCULATIONS THERE WAS NO BOMBSHELL SAID ONE BRITISH BANKER PRESENT WITH BOTH SIDES APPARENTLY SHARING A SIMILAR ANALYSIS OF THE PROBLEMS THE KEY ISSUE REMAINING TO BE RESOLVED IS WHO WILL PAY HOW MUCH TO BAIL OUT EURO DISNEY THE BANKS ARE INSISTING THAT WALT DISNEY TAKE A DISPROPORTIONATE SHARE OF THE RESTRUCTURING BURDEN EVEN THOUGH THE US COMPANY IS LEGALLY ONLY A MINORITY SHAREHOLDER THE BANKS' REASONING IS THAT THE PARK IS A WALT DISNEY CREATION AND RESPONSIBILITY EVEN IF THE US COMPANY MANAGED TO SHIELD ITSELF THROUGH A COMPLEX FINANCIAL AND LEGAL STRUCTURE WITH TIME FOR A RESTRUCTURING RUNNING OUT SOME CREDITORS ARE UNHAPPY AT THE SLOW PACE OF THE TALKS AND CRITICAL OF THE LEAD FRENCH BANKS INVOLVED BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ ONE JAPANESE BANKER EMERGING FROM THE MEETING SAID HE WAS DISAPPOINTED THAT THE LEAD BANKS WEREN'T ABLE TO PROVIDE MORE DETAILED ANSWERS AT THE MEETING A BRIEF COMMUNIQUE ISSUED AT THE END OF THE TALKS SAID THAT A STEERING COMMITTEE OF SOME OF THE MAIN BANKS HAD ASKED FOR A MANDATE TO OPEN DISCUSSIONS WITH WALT DISNEY AND EURO DISNEY ON A RESTRUCTURING BUT ODDLY THE STATEMENT DIDN'T SAY WHETHER THE MEETING HAD AGREED TO DO SO THE BANKERS ALSO DISCUSSED EURO DISNEY'S RESULTS FOR THE FISCAL FIRST PERIOD ENDED DEC 31 1993 THE COMPANY SAID OPERATING EARNINGS FELL TO 828 MILLION FRANCS FROM 944 MILLION FRANCS REFLECTING THE PRODUCT REPOSITIONING AND PRICING INITIATIVES TAKEN BY THE EURO DISNEY MANAGEMENT IN ADDITION TO LOWER ADMISSION CHARGES FOR OFFPEAK SEASONS HOTEL AND RESTAURANT PRICES AT THE PARK HAVE BEEN REDUCED AND SOME STAFF HAVE BEEN LAID OFF COMPANY OFFICIALS SAID ATTENDANCE AT THE PARK WAS STABLE ALTHOUGH THEY DIDN'T GIVE DETAILS THE NET LOSS OF 553 MILLION FRANCS COMPARES WITH A LOSS OF 423 MILLION FRANCS FOR THE YEAREARLIER PERIOD ON THE PARIS STOCK MARKET EURO DISNEY CLOSED AT 3620 FRANCS YESTERDAY DOWN FROM 3775 FRANCS 9402030180 940203 MARKETING & MEDIA EW SCRIPPS TO BUY INDEPENDENT PRODUCER OF CABLE PROGRAMS CINCINNATI EW SCRIPPS CO AGREED TO ACQUIRE ONE OF THE COUNTRY'S LARGEST INDEPENDENT PRODUCERS OF CABLETELEVISION PROGRAMMING AS IT SEEKS TO BECOME A KEY PROVIDER OF ENTERTAINMENT SERVICES SCRIPPS WHICH OWNS SIGNIFICANT NEWSPAPER AND CABLE OPERATIONS SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE CLOSELY HELD BAGWELL COMMUNICATIONS/CINETEL PRODUCTIONS FROM ITS FOUNDER AND CHAIRMAN ROSS K BAGWELL SR TERMS WEREN'T DISCLOSED BUT THE EVENTUAL ACQUISITION PRICE IS EXPECTED TO BE BETWEEN 15 AND 20 MILLION DESPITE THE RELATIVELY SMALL SIZE OF THE ACQUISITION THE MOVE BOLSTERS SCRIPPS'S EFFORTS IN RECENT MONTHS TO DIVERSIFY BEYOND NEWSPAPERS INTO NONPRINT INFORMATION AND ENTERTAINMENT SERVICES LAST SUMMER SCRIPPS ANNOUNCED PLANS TO SIGN ON EIGHT MILLION SUBSCRIBERS FOR ITS 24HOUR HOME & GARDEN TELEVISION NETWORK CABLE CHANNEL TO BE LAUNCHED THIS YEAR IT ALSO ESTABLISHED A HOLLYWOOD PRODUCTION COMPANY SCRIPPS HOWARD PRODUCTIONS TO MAKE TV MOVIES AND MINISERIES THIS IS A MAJOR STATEMENT THAT OUR FUTURE IS IN THE OWNERSHIP PRODUCTION AND SALES OF INFORMATION AND ENTERTAINMENT SAID KEN LOWE PRESIDENT OF THE HOME & GARDEN TELEVISION NETWORK IN AN INTERVIEW BUT HE ADDED WE'RE NOT MOVING AWAY FROM PRINT SCRIPPS SAID THE BAGWELL/CINETEL FACILITY IN KNOXVILLE TENN WILL BECOME THE MAIN PRODUCTION CENTER FOR THE HOME & GARDEN NETWORK AND ELIMINATE THE NEED FOR THE COMPANY TO BUILD AS PREVIOUSLY PLANNED A SEPARATE PRODUCTION FACILITY THE CINETEL OPERATIONS PRODUCED NETWORK SERIES AND PRIMETIME SPECIALS FOR THE NASHVILLE NETWORK ARTS & ENTERTAINMENT THE DISCOVERY CHANNEL NICKELODEON AND OTHER CABLE NETWORKS IN 1993 SIMILAR PRODUCTION IS EXPECTED TO CONTINUE 9402030179 940203 SPORTS PROJECTED SURPLUS FOR '96 SUMMER OLYMPICS EVAPORATES BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE WIRE IN THE ATLANTA OLYMPIC COMMITTEE'S HIGHWIRE ACT HAS JUST GOTTEN HIGHER BUT OFFICIALS HERE SAY THEY STILL AREN'T WORRIED ABOUT FALLING OFF IN THEIR ANNUAL FINANCIAL FORECAST OLYMPICS OFFICIALS YESTERDAY SAID THEY NO LONGER PLAN TO HAVE A SURPLUS AT THE END OF THE 1996 SUMMER GAMES HERE A YEAR AGO THE PROJECTED SURPLUS WAS 16 MILLION MOREOVER A CONTINGENCY FUND THAT WAS BUDGETED AT 100 MILLION LAST YEAR HAS BEEN REDUCED IN THE NEW BUDGET TO 60 MILLION YESTERDAY'S FORECAST DETAILING PROJECTED REVENUE AND EXPENDITURES SHOWS THAT THE SIZE OF THE PIES THEMSELVES ARE LITTLE CHANGED IT WILL STILL COST CLOSE TO 16 BILLION TO STAGE THE GAMES BUT THE MARGIN FOR ERROR HAS ALL BUT VANISHED THE FORECAST AS WELL AS THE SHRINKING SIZE OF THE OLYMPIC COMMITTEE'S SAFETY NET IS CRITICAL TO A NUMBER OF CONSTITUENCIES THE LOCAL ORGANIZING COMMITTEE IS A PRIVATE NONPROFIT GROUP THAT HAS PLEDGED TO STAGE THE GAMES WITHOUT USING ANY PUBLIC MONEY THE SHEER SIZE OF THE UNDERTAKING HOWEVER INCLUDING A HEFTY 5166 MILLION IN PLANNED CONSTRUCTION COSTS HAS RAISED QUESTIONS AMONG SOME GOVERNMENT OFFICIALS INTERNATIONAL SPORTS FEDERATIONS AND OTHERS ABOUT WHETHER THE COMMITTEE MIGHT END UP IN THE RED OR BE FORCED TO SCALE BACK SOME OF ITS AMBITIOUS PLANS THE ANSWER TO BOTH THOSE QUESTIONS ACCORDING TO AD FRAZIER JR CHIEF OPERATING OFFICER FOR ATLANTA'S OLYMPIC COMMITTEE IS NO MR FRAZIER WHO DESCRIBES THE COMMITTEE'S FINANCES AS RIGHT ON TRACK SAYS FURTHER THE TAXPAYER CAN REST EASY ABOUT SPENDING MONEY TO PUT ON THE OLYMPICS MOREOVER HE SAYS NO SIGNIFICANT CHANGES HAVE BEEN MADE IN PLANS FOR ANY SPORTS FACILITIES OR ATHLETIC EVENTS WHILE ACKNOWLEDGING THAT THERE IS STILL SOME RISK MR FRAZIER DESCRIBES HIMSELF AS BEING MORE COMFORTABLE WITH THESE STATISTICS THAN EVER BEFORE THE SIZE OF THE CONTINGENCY HE SAYS IS LESS IMPORTANT TODAY THAN IT WAS EVEN A YEAR AGO BECAUSE OLYMPIC OFFICIALS NOW HAVE MORE PRECISE ESTIMATES FOR THE COST OF SAY TRAINING FEEDING AND OUTFITTING VOLUNTEERS ABOUT 4 MILLION LESS THAN ORIGINALLY PLANNED MOREOVER LARGE SOURCES OF REVENUE THAT WERE STILL QUESTION MARKS A YEAR AGO SUCH AS THE SALE OF US TELEVISION RIGHTS WHICH WENT TO THE NATIONAL BROADCASTING CO LAST JULY FOR 456 MILLION ARE NOW ACCOUNTED FOR WITH REGARD TO THE SURPLUS NOW ELIMINATED MR FRAZIER SAYS SIMPLY THAT WE WEREN'T SETTING OUT TO CREATE A POT OF CASH AT THE END OF THE GAMES WHILE THAT MAY BE TECHNICALLY TRUE OLYMPIC OFFICIALS HAVE BECOME VICTIMS OF THEIR OWN RHETORIC WHEN IT COMES TO EXCESS CASH IN THE LATE 1980S WHEN THE CITY WAS CAMPAIGNING TO WIN THE GAMES AND IN THE EARLY 1990S ONCE THAT PRIZE WAS AWARDED LOCAL OLYMPIC OFFICIALS TALKED OF A SURPLUS OF 150 MILLION OR MORE NO LONGER RAISING MONEY FROM PRIVATE SOURCES PROVED MORE DIFFICULT THAN IMAGINED AND SOME EXPENSES FOR SECURITY AND TECHNOLOGY FOR EXAMPLE HAVE GONE UP INDEED THE BIGGEST CHANGE IN THE BUDGET RELEASED YESTERDAY CAME IN THE BROAD AREA OF OPERATIONS WHERE PROJECTED EXPENDITURES CLIMBED TO 4054 MILLION FROM 3354 MILLION A YEAR AGO AN INCREASE OF 20 THAT CATEGORY WHICH INCLUDES EXPENSES FOR SECURITY AND EQUIPMENT AT VARIOUS ATHLETIC SITES HAS BEEN AFFECTED BY DECISIONS TO ADD SEVERAL SPORTS TO THE GAMES INCLUDING BEACH VOLLEYBALL AND MOUNTAIN BIKING AND TO MOVE THE LOCATION OF SEVERAL OTHERS INCLUDING ROWING AND CANOEING THE CHANGES HAVE PUMPED UP COSTS FOR SECURITY AND LOGISTICS IN PREVIOUS OLYMPICS SOME CITIES MOST NOTABLY MONTREAL IN 1976 HAVE BEEN PLAGUED BY ENORMOUS COST OVERRUNS IN CONSTRUCTION AS OLYMPIC CONSTRUCTION QUICKENS IN ATLANTA THIS YEAR THERE IS SOME CONCERN THAT SIMILAR PROBLEMS WILL OCCUR BUT MR FRAZIER SAYS OLYMPIC OFFICIALS ARE LEAVING A FAIR AMOUNT OF BREATHING ROOM IN THEIR AGREEMENTS WITH CONTRACTORS DESIGNERS AND BUILDERS WE'RE NOT PINNED TO A LOT OF ABSOLUTES MR FRAZIER SAYS IF NEED BE WE'LL SCALE BACK THE SCOPE OF SOME OF THE WORK BUT THAT HASN'T HAPPENED SO FAR AND I DON'T EXPECT IT TO HAPPEN INDEED THE PUBLIC PANEL THAT OVERSEES THE ATLANTA OLYMPIC COMMITTEE THE METROPOLITAN ATLANTA OLYMPIC GAMES AUTHORITY YESTERDAY AUTHORIZED OLYMPIC OFFICIALS TO CONTINUE WITH CONSTRUCTION OF A 209 MILLION OLYMPIC STADIUM THE PLANNED CENTERPIECE OF THE GAMES IN ALL OLYMPIC OFFICIALS SAY THEY HAVE COMMITMENTS FOR ABOUT HALF THE MONEY THEY NEED TO STAGE THE 16DAY EVENT A GOOD CHUNK OF THE REMAINDER WILL COME FROM TICKET SALES A PROJECTED 2612 MILLION AS WELL AS FROM ADDITIONAL SALES OF TV RIGHTS OVERSEAS AND FROM ADDITIONAL SPONSORSHIP AGREEMENTS WE'RE STEAMING AHEAD SAYS MR FRAZIER PROJECTED REVENUE NOW EQUAL PROJECTED EXPENDITURES FOR THE 1996 SUMMER GAMES ELIMINATING PLANS FOR A SURPLUS AND REDUCING A PLANNED CONTINGENCY TO 60 MILLION FROM 100 MILLION 9402030178 940203 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 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 89 DAYS 315 90 TO 159 DAYS 323 160 TO 179 DAYS 327 180 TO 249 DAYS 337 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 317 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 258 THREE MONTHS 274 SIX MONTHS 310 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 312 ONE MONTH 318 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 309 30 DAYS 313 60 DAYS 316 90 DAYS 320 120 DAYS 326 150 DAYS 331 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 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 586 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 692 60 DAYS 698 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 687 60 DAYS 697 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9402030177 940203 MARKETING & MEDIA CAPITAL CITIES/ABC AND PRODUCER JOIN TO CREATE SHOWS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC LOOKING TO EXPAND ITS INHOUSE PRODUCTION CAPABILITY IS SETTING UP A JOINT VENTURE WITH BRILLSTEINGREY ENTERTAINMENT AN INDEPENDENT PRODUCER WITH STRONG TIES TO THE STANDUP COMEDY CIRCUIT CAPITAL CITIES/ABC WILL FINANCE THE VENTURE WHICH WILL HAVE AN INITIAL CAPITALIZATION OF ABOUT 100 MILLION ACCORDING TO AN EXECUTIVE FAMILIAR WITH THE DEAL BRILLSTEINGREY WILL RUN THE DAYTODAY OPERATIONS OF THE NEW COMPANY WHICH WILL BE BASED IN LOS ANGELES AND WILL HIRE A PRESIDENT AND STAFF OF ABOUT 30 THE VENTURE WILL BE CHARGED WITH DEVELOPING MOSTLY HALFHOUR SERIES FOR THE ABC TELEVISION NETWORK BUT WILL ALSO DEVELOP PROGAMMING FOR PAYPERVIEW VIDEOCASSETTES RADIO AND INTERACTIVE TELEVISION CAPITAL CITIES WILL HAVE INITIAL RIGHTS TO ANY PROJECTS BUT THE NEW COMPANY MAY SELL TO OTHER OUTLETS AS WELL AS WE MOVE FORWARD INTO THIS MORE COMPLEX TECHNOLOGICAL WORLD THE NEED TO OWN PRODUCT AND SOFTWARE BECOMES EVEN MORE CRITICAL SAID ROBERT IGER PRESIDENT OF THE ABC TELEVISION NETWORK GROUP BRILLSTEINGREY HE SAID HAS AN INCREDIBLE TRACK RECORD OF DISCOVERING TALENT AMONG THE PROJECTS BRILLSTEINGREY HAS PRODUCED OR PACKAGED ARE THE LARRY SANDERS SHOW AND DEF COMEDY JAM FOR TIME WARNER INC'S HBO AS WELL AS THE MOVIE WAYNE'S WORLD BRILLSTEINGREY'S MOTION PICTURE DIVISION AND TALENT MANAGEMENT BUSINESS WILL NOT BE PART OF THE NEW COMPANY THE COMPANY REPRESENTS ABOUT 125 PEOPLE INCLUDING COMEDIANS GARRY SHANDLING DANA CARVEY AND MIKE MYERS ACTORS NICOLAS CAGE AND BRAD PITT AND SATURDAY NIGHT LIVE EXECUTIVE PRODUCER LORNE MICHAELS BRAD GREY ONE OF THE PRINCIPALS IN BRILLSTEINGREY SAID THE COMPANY WILL BEGIN OPERATIONS IN THE LATE SPRING ONCE THE CURRENT NETWORK TELEVISION DEVELOPMENT SEASON IS COMPLETED HE SAID THE COMPANY IS IN TALKS WITH SONY CORP'S COLUMBIA PICTURES TELEVISION TO HANDLE DOMESTIC SYNDICATION OF ANY SUCCESSFUL SERIES 9402030176 940203 WHO'S NEWS ST PAUL COS ST PAUL COS ST PAUL MINN JOHN DASBURG PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORTHWEST AIRLINES WAS ELECTED A DIRECTOR OF THIS INSURANCE CONCERN THERE ARE NOW 14 MEMBERS ON THE BOARD 9402030175 940203 INTERNATIONAL GM LOSES CIVIL SUIT THAT ACCUSED VW OF LABOR POACHING BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT IN A SETBACK FOR GENERAL MOTORS CORP A FRANKFURT DISTRICT COURT REJECTED GM'S PLEA THAT VOLKSWAGEN AG SHOULD TEMPORARILY SUSPEND SEVEN MANAGERS IT HIRED AWAY FROM THE US AUTO MAKER LAST MARCH HOWEVER THE DECISION IN THIS CIVIL CASE HAS ABSOLUTELY NO INFLUENCE ON THE CENTRAL DEBATE BETWEEN THE TWO COMPANIES GM'S ALLEGATIONS THAT FORMER PURCHASING CZAR J IGNACIO LOPEZ DE ARRIORTUA AND HIS COLLEAGUES ABSCONDED WITH A HOARD OF SENSITIVE GM DOCUMENTS WHEN HE DEFECTED TO VW THE HIRING AWAY OF A WHOLE TEAM OF GM MANAGERS BY VW CONSTITUTED A FURTHER SYSTEMATIC ATTEMPT TO UNFAIRLY DAMAGE A COMPETITOR GM MAINTAINED BUT THE FRANKFURT COURT RULED THAT DESPITE REMAINING DOUBTS IT COULDN'T BE PROVED THAT UNFAIR COMPETITION PRACTICES PLAYED A ROLE IN THE SEVEN MEN FOLLOWING MR LOPEZ TO VW BECAUSE OF MR LOPEZ'S PERSONAL DYNAMISM AND THE CLOSE TEAM SPIRIT AMONG HIS SUBORDINATES IT COULDN'T BE RULED OUT THAT THE MEN FOLLOWED HIM ON THEIR OWN INITIATIVE THE COURT SAID VW CAN CONTINUE TO EMPLOY THE SEVEN MEN AND GM MUST BEAR 80 OF THE COURT COSTS THE COURT RULED THE GERMAN CAR MAKER SEIZED ON THE RULING AS A TRIUMPH CONFIRMING ITS INNOCENCE NOT ONLY IN THE LABORPOACHING DISPUTE BUT ALSO MORE BROADLY IN CONNECTION WITH THE ALLEGATIONS SURROUNDING MR LOPEZ NO CRIMINAL CHARGES FOR INDUSTRIAL ESPIONAGE HAVE BEEN FILED AND VW HAS AT ALL TIMES DENIED WRONGDOING BUT PUBLIC PROSECUTORS IN BOTH THE US AND GERMANY HAVE BEEN INVESTIGATING THE CASE FOR MONTHS THE DISTRICT COURT HAS UNAMBIGUOUSLY ESTABLISHED THAT THERE WERE NO UNFAIR COMPETITION PRACTICES OF ANY KIND IN CONNECTION WITH THE SWITCH OF THE FORMER GM/OPEL EMPLOYEES TO VW THE GERMAN CAR MAKER SAID THAT RESPONSE ANGERED GM THE STATEMENT BY VOLKSWAGEN AG ABOUT THE FRANKFURT DISTRICT COURT ADDRESSING THE ISSUE OF INDUSTRIAL ESPIONAGE IN ITS RULING IS FACTUALLY INACCURATE ADAM OPEL AG GM'S GERMAN SUBSIDIARY SAID IN A STATEMENT OPEL CHAIRMAN DAVID HERMAN STRESSED THAT THE LABORPOACHING DISPUTE WAS A LEGAL SIDESHOW SEPARATE FROM THE MORE IMPORTANT MATTER OF THE CRIMINAL INVESTIGATIONS GM SAID IT HASN'T DECIDED WHETHER TO APPEAL THE RULING 9402030174 940203 INTERNATIONAL ITALIAN CONSUMER PRICES RISE ROME ITALY'S CONSUMER PRICE INDEX WAS UP 06 IN JANUARY FROM DECEMBER AND UP 42 FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT REPORTED ISTAT SAID THE RISE IN JANUARY FROM DECEMBER WAS LARGELY A RESULT OF AN INCREASE IN ELECTRICITY TRANSPORT AND COMMUNICATION COSTS AND HOUSING COSTS 9402030173 940203 INTERNATIONAL KRAVCHUK IS CONFIDENT THAT UKRAINE WILL SURVIVE CRIMEAN SECESSION THREAT BY MARK M NELSON AND NATALIA A FEDUSCHAK STAFF REPORTERS OF THE WALL STREET JOURNAL KIEV UKRAINE PRESIDENT LEONID KRAVCHUK SAID HE IS CONFIDENT THAT UKRAINE WILL SURVIVE ITS CURRENT TROUBLES AND BEGIN THE ECONOMIC REBUILDING THAT IT SO DESPERATELY NEEDS EVEN THE PROBLEM POSED BY LAST SUNDAY'S ELECTION OF YURI MESHKOV AS PRESIDENT OF CRIMEA AN AUTONOMOUS REPUBLIC IN UKRAINE CAN BE SETTLED WITHOUT CONFLICT MR KRAVCHUK SAID IN AN INTERVIEW MR MESHKOV VOWS TO SECEDE FROM UKRAINE AND JOIN RUSSIA BUT ANY MOVE BY CRIMEAN PRESIDENT MESHKOV TO JOIN RUSSIA WOULD BE STRONGLY RESISTED MR KRAVCHUK SAID THE PRESIDENT OF CRIMEA IS NOT THE HEAD OF A NATION HE SAID WHILE CRIMEA COULD CREATE ITS OWN ECONOMIC PROGRAM AND TRADE TIES MR KRAVCHUK SAID IT WOULD PROBABLY DECIDE ON ITS OWN THAT SECESSION ISN'T REALISTIC ANY DISCUSSION ABOUT CRIMEAN INDEPENDENCE WOULD BEGIN WITH ISSUES SUCH AS THE BILLIONS OF DOLLARS THAT THE COUNTRY WOULD HAVE TO PAY FOR WATER SUPPLIES AND ENERGY RESOURCES MOST OF WHICH COME FROM UKRAINE HE ALREADY HAS HAD A PHONE CONVERSATION WITH MR MESHKOV AND WILL BE MEETING WITH HIM IN THE NEXT FEW DAYS HE ADDED MR KRAVCHUK FEELS SURE THAT MR MESHKOV WILL NOW END HIS MORE EXTREME CAMPAIGN RHETORIC HE SAID A PERSON CHANGES RIGHT AWAY UNDER THE BURDEN OF POWER EITHER IN A BETTER OR WORSE WAY I EXPECT THIS WILL BE IN A BETTER WAY FOR UKRAINE THERE HAVE BEEN MANY SETBACKS AND UNCERTAINTIES IN TRYING TO ESTABLISH ITSELF AS A SELFSUPPORTING COUNTRY FOLLOWING ITS SPLIT FROM THE FORMER SOVIET UNION MANY UKRAINIANS SAY THAT MR KRAVCHUK HIMSELF IS PART OF THE NATION'S PROBLEM AND THAT HE IS NOW NEAR THE END OF HIS LONG POLITICAL CAREER THE 60YEAROLD FORMER COMMUNIST PARTY IDEOLOGY CHIEF WAS PARLIAMENTARY SPEAKER BEFORE THE COUNTRY'S INDEPENDENCE AND THEN WON THE PRESIDENCY IN THE COUNTRY'S FIRST ELECTIONS IN DECEMBER 1991 HE SAID HE HASN'T DECIDED WHETHER HE WILL BE A CANDIDATE IN PRESIDENTIAL ELECTIONS WHICH HE AGREED TO SCHEDULE IN JUNE PARLIAMENTARY ELECTIONS WILL BE ON MARCH 27 MR KRAVCHUK WON THE PRAISE OF BILL CLINTON FOR AGREEING LAST MONTH TO THE USRUSSIAUKRAINE UNDERSTANDING HIGHLY CONTROVERSIAL WITH UKRAINE'S PARLIAMENT THAT WILL DISMANTLE SOME 1800 NUCLEAR WEAPONS IN THE NEXT SEVEN YEARS MR KRAVCHUK SAID HE EXPECTS BOTH THE US AND RUSSIA TO LIVE UP TO THEIR END OF THE DEAL NAMELY TO HELP UKRAINE ESTABLISH MORE SECURITY AT A TIME WHEN POLITICAL FORCES IN RUSSIA AND IN CRIMEA ARE THREATENING UKRAINE'S EXISTENCE MR KRAVCHUK SAID THAT SETTLING THE NUCLEARWEAPONS ISSUE WOULD ALLOW UKRAINE TO MOVE ON TO ITS MOST PRESSING PROBLEM THE COLLAPSING ECONOMY THE OUTGOING PARLIAMENT AGREED ON MONDAY TO AN AUSTERE BUDGET THAT EVERYONE HOPES WILL HELP STOP THE RUNAWAY INFLATION AND MR KRAVCHUK VOWED THAT UKRAINE WOULD MOVE FORWARD WITH A PLAN TO PRIVATIZE 8000 COMPANIES THIS YEAR BUT HE BRISTLED AT CRITICISM OF UKRAINE'S PACE OF ECONOMIC CHANGE I'LL TELL YOU VERY OPENLY THIS IRRITATES ME WHEN WESTERN LEADERS TALK ABOUT QUICK REFORMS AND ASK ME WHY THEY AREN'T GOING AHEAD HE SAID HIS VOICE RISING IN ANGER I WOULD LIKE FOR THESE MEN TO COME TO THESE ENTERPRISES AND LISTEN TO THOSE PEOPLE AND TO WHAT THEY WILL TELL THEM ABOUT REFORMS AND HOW QUICK THEY ARE SUPPOSED TO GO THAT'S WHY WE ARE TAKING INTO ACCOUNT THE REAL SITUATION SO THERE WILL BE NO SOCIAL EXPLOSION 9402030172 940203 CANADA AUCTIONS BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION TWO BILLION CANADIAN DOLLARS US15 BILLION OF 65 BONDS DUE JUNE 1 2004 AT AN AVERAGE YIELD OF 6477 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9402030171 940203 JACOBS ENGINEERING CONTRACT PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT WON A CONTRACT FROM A CHEVRON CORP UNIT FOR ENGINEERING DESIGN AND CONSTRUCTION OF A 290 MILLION MODERNIZATION PROJECT AT CHEVRON'S RICHMOND CALIF REFINERY THE WORK AT THE SOCALLED FLUIDCATALYTIC CRACKING UNIT WILL INCREASE THE CONVERSION OF FEEDSTOCKS TO MORE VALUABLE LIGHT PRODUCTS AND IMPROVE ENERGY EFFICIENCY WHEN IT IS COMPLETED IN LATE 1995 A SPOKESMAN FOR THE ENGINEERING CONCERN SAID THE VALUE TO JACOBS REPRESENTS SUBSTANTIALLY ALL OF THE TOTAL VALUE OF THE PROJECT 9402030170 940203 PEPPERAND SALT IT BRINGS US THE CHANGE OF SEASON NOW TIRED OF FOOTBALL COLD AND RAIN REJOICE SUMMER'S ON ITS WAY AGAIN 9402030169 940203 WHO'S NEWS CAPSTEAD MORTGAGE CORP CAPSTEAD MORTGAGE CORP DALLAS BEVIS LONGSTRETH 60YEAROLD PARTNER AT DEBEVOISE & PLIMPTON OF NEW YORK AND PROFESSOR OF LAW AT COLUMBIA UNIVERSITY SCHOOL OF LAW WAS NAMED TO THE BOARD OF THIS MORTGAGE COMPANY FILLING A VACANCY 9402030168 940203 HOLLYWOOD CASINO INDIANA MOVE DALLAS HOLLYWOOD CASINO CORP SAID IT FORMED A PARTNERSHIP WITH DEVELOPER CHRISTOPHER HEMMETER TO COMPETE FOR A RIVERBOAT GAMING LICENSE IN MICHIGAN CITY INDIANA MR HEMMETER'S MICHIGAN CITY CASINO & LODGE INC WAS THE FIRST TO APPLY FOR THE LICENSE LAST SEPTEMBER HOLLYWOOD CASINO SAID THE 161 MILLION PROPOSAL INCLUDES A RIVERBOAT CASINO RESTAURANTS A HOTEL AND CONVENTION FACILITIES HOLLYWOOD WHICH OWNS AND OPERATES TWO RIVERBOATS IN AURORA ILL AND THE SANDS HOTEL & CASINO IN ATLANTIC CITY NJ WILL BE AN EQUAL PARTNER IN THE INDIANA PROJECT WITH MR HEMMETER 9402030167 940203 MICHAELS STORES' SALES ARE UP IRVING TEXAS MICHAELS STORES INC SAID JANUARY SALES AT STORES OPEN MORE THAN A YEAR INCREASED 6 FROM JANUARY 1993 AND TOTAL SALES FOR THE MONTH WERE UP 32 TO 574 MILLION FROM 436 MILLION SAMESTORE SALES FOR BOTH THE FOURTH QUARTER AND THE FISCAL YEAR ENDED JAN 30 INCREASED 3 THE ARTSANDCRAFT RETAILER SAID TOTAL SALES FOR THE FOURTH QUARTER WERE UP 29 TO 2347 MILLION FROM 1821 MILLION AND TOTAL SALES FOR THE YEAR INCREASED 26 TO 6197 MILLION FROM 4932 MILLION 9402030166 940203 WHO'S NEWS ALUMINUM CO OF AMERICA ALUMINUM CO OF AMERICA PITTSBURGH ALAIN BELDA 50 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS ALUMINUM PRODUCER HE HAD BEEN A VICE PRESIDENT OF ALCOA AND PRESIDENTLATIN AMERICA AND ALCOA ALUMINIO SA ALCOA'S MAJORITYOWNED BRAZILIAN AFFILIATE 9402030165 940203 INTEGRATED HEALTH SERVICES PACT OWINGS MILLS MD INTEGRATED HEALTH SERVICES INC SAID IT COMPLETED AN AGREEMENT WITH CLOSELY HELD CRESTWOOD HOSPITALS INC OF STOCKTON CALIF TO MANAGE 23 LONGTERM CARE AND PSYCHIATRIC FACILITIES IN NORTHERN CALIFORNIA INTEGRATED HEALTH SAID THE PACT GIVES IT THE OPTION TO PURCHASE THE FACILITIES AT THE END OF THE AGREEMENT'S 10YEAR TERM FINANCIAL TERMS WEREN'T DISCLOSED 9402030164 940203 CORPORATE FOCUS BANK OF BOSTON TIES FORTUNES TO LOANS FOR SMALL FIRMS BUT WITH THE REGION'S ECONOMY STILL SAGGING ANALYSTS ARE WARY BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON DESPITE A LACKLUSTER REGIONAL ECONOMY BANK OF BOSTON CORP IS MAKING AN AGGRESSIVE PUSH INTO AN AREA MANY BANKS ARE STILL RELUCTANT TO TREAD NEW BUSINESS LENDING THE BANK WHICH ONLY RECENTLY RECOVERED FROM THE SEVERE SLUMP IN NEW ENGLAND REAL ESTATE INCREASED ITS OVERALL LOAN PORTFOLIO 13 IN 1993 TO 2878 BILLION THAT FAR OUTPACES THE DOMESTIC LOAN GROWTH OF OTHER US BANKS WHICH AVERAGED A 18 RISE IN THE YEAR ENDED JUNE 30 MOREOVER WHILE OTHER BANKS FOCUS ON EXPANDING THEIR CONSUMER LENDING BANK OF BOSTON'S NEW CUSTOMERS ARE PRIMARILY SMALLBUSINESS OWNERS NOT A TRADITIONAL AREA OF STRENGTH FOR THE BANK NEW ENGLAND'S SECONDLARGEST BANK SAYS IT IS BETTING ON A CONTINUED PICKUP IN THE ECONOMY IF THE STRATEGY WORKS THE BANK WILL HAVE CREATED A NEW AND PROFITABLE BUSINESS FOR ITSELF AS SOME SMALLER BORROWERS GROW INTO LARGER CUSTOMERS BUT WITH NEW ENGLAND'S ECONOMY STILL LAGGING BEHIND THE REST OF THE COUNTRY ANALYSTS SAY THE STRATEGY CARRIES SUBSTANTIAL RISK AS ONE SIGN OF THE SLUGGISHNESS EMPLOYMENT IN THE REGION HAS PLUNGED 10 TO 59 MILLION JOBS FROM ITS PEAK IN FEBRUARY 1989 WHILE US EMPLOYMENT IS UP 087 FROM A PEAK IN JUNE 1990 IF THE ALREADYWEAK REGIONAL RECOVERY STALLS BANK OF BOSTON COULD LOSE WHATEVER CHANCE IT HAS TO REGAIN ITS STANDING AS NEW ENGLAND'S LARGEST BANK FLEET FINANCIAL GROUP INC OF PROVIDENCE RI EARNED THAT DISTINCTION WITH ITS BANK OF NEW ENGLAND TAKEOVER IN 1991 FOR THE FIRST TIME IN UMPTEEN YEARS THERE WILL BE SOME SUSTAINED ECONOMIC PICKUP FROM 1994 TO 1996 SAYS CHARLES K GIFFORD BANK OF BOSTON'S PRESIDENT I BELIEVE THE MARKET HAS TURNED AROUND AS ONE SIGN OF RENEWED CONFIDENCE MR GIFFORD SAYS THAT MANY BUSINESSES HAVE STOPPED PAYING OFF THEIR DEBT AND ARE NO LONGER AFRAID TO TAKE ON ADDED BORROWING ANALYSTS SAY BANK OF BOSTON IS INCREASING MARKET SHARE BY OFFERING ATTRACTIVE INTEREST RATES AND FLEXIBLE LENDING TERMS THAT COMPETITORS AREN'T MATCHING MOST OF THE BANKS IN THE NORTHEAST ARE HAVING DIFFICULTY GENERATING THE LOAN GROWTH THAT BANK OF BOSTON IS GENERATING SAYS GERARD S CASSIDY AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES THEY BANK OF BOSTON MUST BE OFFERING SOMETHING THAT IS INDUCING PEOPLE TO LEAVE THEIR EXISTING RELATIONSHIPS BUT AS AN OUTSIDER LOOKING IN ONE WOULD HAVE TO SAY THAT BUYING MARKET SHARE IN THIS ENVIRONMENT COULD BACKFIRE SAYS MR CASSIDY DEPENDING ON HOW THEY STRUCTURED THE LOANS IT COULD COME BACK TO BITE THEM FEDERAL RESERVE GOVERNOR JOHN LAWARE WARNED NEW ENGLAND BANKS AGAINST THE DANGERS OF TOORAPID EXPANSION IN A SPEECH TO CORPORATE EXECUTIVES IN BOSTON RECENTLY PRESSURE ON EARNINGS WILL BE MATERIAL IF BANKS FIX RATES TOO LOW ON LONGTERM ASSETS MR LAWARE SAID BANK OF BOSTON DENIES CUTTING INTEREST RATES OR MAKING RISKY LOANS THERE IS TREMENDOUS COMPETITION FOR MIDDLEMARKET CORPORATE LOANS SAYS MR GIFFORD WE HAVE TO BE CAREFUL OUR MANAGEMENT DOESN'T LET COMPETITION OUTWEIGH JUDGMENT ON LOANS THE OBVIOUS DANGER IS YOU'LL MAKE BAD LOANS AND YOU'LL DO IT TOO CHEAPLY I'M CONVINCED WE'RE DOING NEITHER THIS INSTITUTION AND ITS SHAREHOLDERS FELT SUCH PAIN IN 1989 FROM CREDITQUALITY CONCERNS THAT WE'RE NOT ABOUT TO GO IN THE SOUP AGAIN LIKE MANY NEW ENGLAND BANKS BANK OF BOSTON WAS HIT HARD BY BAD REALESTATE LOANS BEGINNING IN 1989 RESULTING IN REGULATORY CONSTRAINTS AND A LOSS OF APPETITE FOR LENDING AFTER TWO YEARS SPENT ON THE MEND THE COMPANY WAS THE FIRST MAJOR NEW ENGLAND BANK TO DECLARE ITSELF OUT OF THE WOODS ITS STRATEGY SINCE HAS BEEN TO PURSUE ACQUISITIONS AND NEW BORROWERS LAST YEAR IT ACQUIRED MULTIBANK FINANCIAL CORP OF DEDHAM MASS AND SOCIETY FOR SAVINGS BANCORP OF HARTFORD CONN OTHER REGIONAL BANKS ARE ALSO MAKING ACQUISITIONS BUT THEIR TACK ON GENERATING INTERNAL GROWTH HASN'T DEPENDED AS MUCH ON LOANS SHAWMUT NATIONAL CORP OF HARTFORD CONN HAD 1538 BILLION IN LOANS AS OF DEC 31 UP 3 FROM THE YEARAGO PERIOD MUCH OF BANK OF BOSTON'S GAIN IN LOANS HAS COME IN COMMERCIAL LENDING IF INTEREST RATES RISE AS THE ECONOMY QUICKENS COMMERCIAL LENDING AT LOWER RATES COULD BE RISKIER ESPECIALLY IF DEPOSIT COSTS RISE AS OF DEC 31 1993 BANK OF BOSTON HAD 1199 BILLION IN COMMERCIAL AND INDUSTRIAL LOANS COMPARED WITH 1033 BILLION A YEAR AGO THE COMMERCIALLOAN PORTFOLIO WAS BOLSTERED BY THE BANK'S COMMITMENT ANNOUNCED 18 MONTHS AGO TO LEND 6 BILLION TO DATE THE BANK HAS COMMITTED ABOUT 5 BILLION TO 1200 NEW ENGLAND COMMERCIAL AND INDUSTRIAL CUSTOMERS OF THE 5 BILLION LOANS OUTSTANDING ARE ABOUT 3 BILLION IN THE PAST WE'VE BEEN CRITICIZED FOR HAVING LOAN GROWTH DRIVEN BY HUGE LOANS SAYS MR GIFFORD BANK OF BOSTON IS COUNTING ON SMALLBUSINESS CUSTOMERS TO GENERATE INCOME FROM OTHER BANK PRODUCTS SUCH AS CHECKING AND SAVINGS ACCOUNTS THE PROFIT HAS TO DO WITH THE FACT THAT SMALLBUSINESS CUSTOMERS ARE TYPICALLY LOYAL THEY GENERALLY DO MORE WITH THEIR BANK THAN BORROWING SAYS JOHN KAHWATY A SPOKESMAN FOR BANK OF BOSTON DENISE RHONE AND CARRIE JONES APPROACHED BANK OF BOSTON LAST MARCH AFTER FIVE OTHER BANKS REJECTED THEIR REQUEST FOR A 50000 LOAN FOR THEIR BUSINESS SPARKLE CLEANING ASSOCIATES OF NATICK MASS BEING A COMMERCIAL CLEANING FIRM WE HAD NO REAL COLLATERAL THAT BANKS WERE INTERESTED IN SAYS MS RHONE BANK OF BOSTON'S LOAN ENABLED THE COMPANY TO BUY CARPETSHAMPOO MACHINES TRUCKS AND A COMPUTER SPARKLE CLEANING NOW HAS LARGER CORPORATE CONTRACTS AND HAS SEEN REVENUE JUMP TO ABOUT 1 MILLION IN 1993 ITS STAFF HAS GROWN TO 65 FROM 25 OUTSIDE OF NEW ENGLAND BANK OF BOSTON'S COMMERCIAL PORTFOLIO HAS CONTINUED ITS GROWTH IN SPECIALIZED INDUSTRY LENDING TO MEDIA TRANSPORTATION AND ENVIRONMENTAL SERVICES COMPANIES THE BANK ALSO HAS SEEN GROWTH IN ITS INTERNATIONAL LENDING IN ARGENTINA BRAZIL CHILE AND URUGUAY WHICH TOGETHER MADE UP 20 OF ITS LOAN BUSINESS IN 1993 THE ACQUISITIONS OF MULTIBANK FINANCIAL AND SOCIETY FOR SAVINGS BANCORP CONTRIBUTED AN ADDITIONAL 33 BILLION TO 1993'S TOTAL LOANS OUTSTANDING THE BANK SAID MR GIFFORD SAID INTERNAL LOAN GROWTH COMBINED WITH THE RECENT ACQUISITIONS CAUSED THE 1993 DOMESTIC LOAN PORTFOLIO TO GROW MORE THAN 25 FROM 1992 INTERNATIONAL LOANS WERE ALSO UP ABOUT 25 HE SAID 9402030163 940203 WHO'S NEWS SHONEY'S INC SHONEY'S INC NASHVILLE TENN JAMES M GROUT 49 YEARS OLD WAS NAMED PRESIDENT OF SHONEY'S RESTAURANT DIVISION MR GROUT'S PREVIOUS POSITION HAD BEEN EXECUTIVE VICE PRESIDENT FOR FRANCHISING AND DEVELOPMENT FOR THIS RESTAURANT COMPANY HE FILLS A POSITION THAT OPENED UP 10 MONTHS AGO WHEN STEVE SANDERS THE FORMER PRESIDENT LEFT TO BECOME A SHONEY'S FRANCHISEE JAMES W ARNETT JR PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY HAD ASSUMED MR SANDERS' DUTIES IN THE INTERIM 9402030162 940203 UNION TEXAS PETROLEUM ACCORD HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID A UNIT SIGNED AN AGREEMENT TO EXPLORE FOR OIL AND GAS IN ALASKA THE OIL AND NATURAL GAS COMPANY SAID ITS UNION TEXAS PETROLEUM ALASKA CORP AND COOK INLET REGION INC AN ALASKA NATIVE REGIONAL COMPANY AGREED TO PURSUE A THREEYEAR EXPLORATION PROGRAM ON MORE THAN 340000 ACRES ON THE KENAI PENINSULA IN SOUTH CENTRAL ALASKA ABOUT 50 MILES SOUTHWEST OF ANCHORAGE THE UNIT WHICH WILL HAVE A 100 WORKING INTEREST WILL CONDUCT THE EXPLORATION PROGRAM IT ALSO WILL HAVE THE OPTION OF ACQUIRING OIL AND GAS LEASES ON THE ACREAGE AND COOK INLET REGION WILL HAVE THE OPTION OF PARTICIPATING IN DRILLING PROGRAMS A SPOKESMAN SAID UNION TEXAS PETROLEUM WOULD COLLECT AND STUDY DATA ON THE ACREAGE IN 1994 AND 1995 AND DRILLING MIGHT BEGIN IN 1995 OR 1996 9402030159 940203 WRT ENERGY CORP PURCHASE THE WOODLANDS TEXAS WRT ENERGY CORP SAID IT COMPLETED A 165 MILLION ACQUISITION OF PROVED RESERVES AND OIL FIELD EQUIPMENT IN LOUISIANA THE OIL AND NATURAL GAS COMPANY HAD ANNOUNCED EARLIER THIS MONTH THAT IT WOULD SWAP 17 MILLION SHARES OF ITS COMMON STOCK VALUED AT ABOUT 186 MILLION FOR WORKING INTERESTS IN THE CAMERON PARISH LA PROPERTIES INSTEAD THE COMPANY PAID TEXAS AMERICAN RESOURCES INC AND BUCKINGHAM CAPITAL CORP 115 MILLION IN CASH AND 454000 SHARES OF RESTRICTED COMMON STOCK VALUED AT 5 MILLION FOR A 100 WORKING INTEREST IN 3500 ACRES OF OIL AND GAS LEASES AND FOR TWO DRILLING RIGS AND ASSOCIATED EQUIPMENT VALUED AT 25 MILLION A COMPANY SPOKESMAN SAID THE ACQUISITION INCREASED THE COMPANY'S PROVED OIL RESERVES 293 TO 55 MILLION BARRELS OF OIL FROM 14 MILLION BARRELS OF OIL AND INCREASED ITS GAS RESERVES 40 TO 136 BILLION CUBIC FEET FROM 97 BILLION CUBIC FEET 9402030158 940203 EXPLORATION CO OF LOUISIANA LAFAYETTE LA EXPLORATION CO OF LOUISIANA SAID IT OBTAINED A 292 MILLION LOAN FROM INTERNATIONAL NEDERLANDEN US CAPITAL CORP THE OIL AND NATURALGAS EXPLORATION COMPANY SAID THE NEW LOAN WHICH REQUIRES INTERESTONLY PAYMENTS FOR 18 MONTHS REPLACED A PREVIOUS BANK LOAN MARSDEN W MILLER JR CHAIRMAN SAID THAT OBTAINING THE NEW LOAN COMPLETED THE FIRST PHASE OF THE COMPANY'S CAPITAL REORGANIZATION MR MILLER SAID THIS WILL ALLOW THE COMPANY TO DRILL THREE WELLS OFFSHORE CHINA DURING THE NEXT 15 MONTHS AND TO CONTINUE DEVELOPING THE BERRY R COX FIELD IN SOUTH TEXAS 9402030157 940203 BONTON STORES JANUARY SALES YORK PA BONTON STORES INC SAID HARSH WINTER WEATHER CONTRIBUTED TO A 16 DECLINE IN JANUARY SALES AT STORES OPEN MORE THAN ONE YEAR THE CLOTHING RETAILER SAID TOTAL SALES FOR THE FOUR WEEKS ENDED JAN 29 FELL 18 TO 121 MILLION SAMESTORE SALES FOR THE FULL YEAR EDGED DOWN 05 WHILE TOTAL SALES EDGED UP 09 TO 3367 MILLION DESPITE THE BAD WEATHER MICHAEL GLEIM SENIOR EXECUTIVE VICE PRESIDENT SAID THE COMPANY REMAINS COMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES FOR THE YEAR MR GLEIM SAID THE COMPANY EXPECTS TO EARN 76 CENTS A SHARE BEFORE A 14CENT GAIN FROM A CHANGE IN ACCOUNTING FOR THE YEAR ENDED SATURDAY A YEAR EARLIER BONTON STORES HAD NET INCOME OF 71 MILLION OR 64 CENTS A SHARE 9402030156 940203 BUSINESS BRIEF USF&G'S NET SHOWED SURPRISING STRENGTH IN THE FOURTH QUARTER BALTIMORE USF&G CORP REPORTED SURPRISINGLY STRONG FOURTHQUARTER EARNINGS SIGNALING THAT ITS RESTRUCTURING IS BEGINNING TO PAY OFF THE RESULTS PROPELLED USF&G STOCK UP 150 OR 11 TO CLOSE AT 15375 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE ONCESTRUGGLING INSURER HAS REPORTED EIGHT STRAIGHT QUARTERLY PROFITS BUT UNTIL NOW THE COMPANY HAS BEEN SHRINKING INSTEAD OF GROWING CONSIDERABLE SKEPTICISM STILL SURROUNDS THE USF&G TURNAROUND AND WHETHER IT CAN PRODUCE INCREASING PROFITS OVER THE LONG TERM BUT YESTERDAY'S RESULTS MARKED THE FIRST TIME IN THREE YEARS THAT THE COMPANY REPORTED AN INCREASE IN PREMIUMS AFTER ADJUSTING FOR FACTORS THAT EXAGGERATED THE GROWTH PREMIUMS GREW 4 IN THE FOURTH QUARTER COMPARED WITH THE PRIOR YEAR I WAS VERY PLEASED SAID STEVEN GAVIOS A STOCK ANALYST WITH KIDDER PEABODY & CO USF&G SAID IT EARNED 59 MILLION OR 55 CENTS A SHARE COMPARED WITH PRIORYEAR RESULTS OF 13 MILLION OR ONE CENT A SHARE DESPITE THE INCREASE IN PREMIUMS TOTAL REVENUE EDGED DOWN TO 799 MILLION FROM 802 MILLION UNDER CHAIRMAN NORMAN BLAKE WHO TOOK OVER THREE YEARS AGO USF&G HAS CUT ITS WORK FORCE BY 48 AND CUT COSTS BY 31 BUT ANALYSTS SAY TRIMMING IS EASY COMPARED WITH TRYING TO INCREASE PROFIT AND REVENUE PARTICULARLY IN THE MARKETS WHERE USF&G SPECIALIZES THE COMPANY IS FOCUSED ON SELLING COMMERCIAL INSURANCE TO SMALL AND MIDSIZED BUSINESSES THEY HAVE MADE THEMSELVES FROM A BELOWAVERAGE COMPANY TO AN AVERAGE ONE SAID NORTHINGTON PARTNERS ANALYST JAMES RAMENDA BUT TO GO FROM A AVERAGE COMPANY TO A GROWING COMPANY WILL BE A REAL CHALLENGE DAN HALE CHIEF FINANCIAL OFFICER FOR USF&G SAID THE COMPANY HAS COMPLETED ITS WITHDRAWALS FROM STATES WHERE WORKERSCOMPENSATION AND AUTOINSURANCE LAWS MAKE IT TOUGH TO EARN A PROFIT HE SAID THE COMPANY PLANS TO GROW BY OFFERING SUPERIOR SERVICE TO SMALL BUSINESSES AND BY SELLING SPECIALIZED INSURANCE PROGRAMS TO MIDSIZE BUSINESSES BUSINESSES BEING TARGETED INCLUDE TAVERNS RESTAURANTS MANUFACTURERS AND CONTRACTORS INDUSTRIES WHERE OTHER INSURERS HAVE SUSTAINED DISAPPOINTING RESULTS 9402030155 940203 WHO'S NEWS HOGAN SYSTEMS INC HOGAN SYSTEMS INC DALLAS WILLIAM H DOUGHERTY RETIRED CHIEF FINANCIAL OFFICER OF KEYCORP ALBANY NY WAS ELECTED A DIRECTOR OF THIS BANKING SOFTWARE SUPPLIER MR DOUGHERTY 63 YEARS OLD SUCCEEDS GREGOR P PETERSON WHO RETIRED LAST AUGUST FROM THE FIVEMEMBER BOARD 9402030154 940203 ARMCO HAD 98 MILLION 4THPERIOD LOSS PARTLY BECAUSE OF COSTLY RESTRUCTURING ARMCO INC REPORTED A LOSS FOR THE FOURTH QUARTER AND THE YEAR PARTLY REFLECTING A COSTLY RESTRUCTURING BUT THE CORE SPECIALTY STEEL BUSINESS SHOWED YEARTOYEAR GAINS FOR THE FOURTH QUARTER THE PITTSBURGH PRODUCER OF STAINLESS AND ELECTRICAL STEELS POSTED A LOSS OF 98 MILLION OR 99 CENTS A SHARE THE RESULT INCLUDED A 45 MILLION LOSS RELATED TO THE EXPECTED SALE OF ARMCO'S INSURANCE OPERATIONS A 10 MILLION EQUITY LOSS RELATED TO AN ADDITIONAL CAPITAL CONTRIBUTION TO A STEEL JOINT VENTURE EQUITY LOSSES OF 99 MILLION FROM OTHER JOINT VENTURES AND AN EXTRAORDINARY LOSS OF 73 MILLION RELATED TO DEBT RETIREMENT THE YEARAGO LOSS WAS 3767 MILLION OR 368 A SHARE INCLUDING SPECIAL CHARGES AND LOSSES FROM JOINT VENTURES AND DISCONTINUED OPERATIONS OF 3625 MILLION THE OPERATING LOSS WAS 33 MILLION IN THE LATEST QUARTER WITHOUT INCLUDING 69 MILLION OF ADDITIONAL EXPENSE FOR A POSTRETIREMENT ACCOUNTING CHANGE THE YEARAGO OPERATING LOSS WAS 18 MILLION NOT COUNTING SPECIAL CHARGES OF 1689 MILLION IN THE LATEST QUARTER INCREASED PROFITABILITY OF ARMCO'S CORE SPECIALTY STEEL BUSINESS AND DOUGLAS DYNAMICS WHICH MAKES SNOWPLOWS FOR CERTAIN VEHICLES LARGELY OFFSET ESCALATING CARBON STEEL SCRAP PRICES AT THE EMPIREDETROIT STEEL BUSINESS AND THE START UP OF A STRETCH MILL THE COMPANY ALSO SAID IT WAS BENEFITING FROM RECORD LEVELS OF CHROME STAINLESS SHIPMENTS TO THE AUTOMOTIVE MARKET ARMCO'S PRESIDENT AND CHIEF EXECUTIVE JAMES F WILL WHILE STATING HE WAS NOT SATISFIED WITH OVERALL RESULTS AND THE PERFORMANCE OF SOME UNITS EXPECTS THE COMPANY WILL BENEFIT FROM ITS RESTRUCTURING MOVES CASH FROM DIVESTING NONSTRATEGIC OPERATIONS HAS IMPROVED OUR LIQUIDITY HE SAID WE REFINANCED AND RETIRED OBLIGATIONS SO THAT WE HAVE NO SUBSTANTIAL DEBT DUE UNTIL 1999 THE COMPANY ALSO EXPECTS TO RETURN THE EMPIREDETROIT BUSINESS TO PROFITABILITY OVERALL SALES FELL 22 TO 3635 MILLION FROM 464 MILLION SALES FOR THE SPECIALTY FLATROLLED STEEL BUSINESS FELL TO 225 MILLION FROM 242 MILLION LARGELY REFLECTING CHANGES IN PRODUCT MIX ARMCO SAID MR WILL SAID ORDERS ARE STRONG FOR BOTH STAINLESS AND ELECTRICAL STEEL PRODUCTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ARMCO ROSE 25 CENTS OR 39 TO 6625 9402030153 940203 TAMBRANDS EARNINGS SHOWED A 32 DECLINE FOR THE FOURTH PERIOD WHITE PLAINS NY TAMBRANDS INC REPORTED A 32 DECLINE IN FOURTHQUARTER EARNINGS ON LOWER SALES THAT RESULTED MAINLY FROM FLUCTUATIONS IN TRADE CUSTOMER INVENTORIES IN THE US THE MAKER OF TAMPAX BRAND TAMPONS SAID NET INCOME FOR THE QUARTER FELL TO 211 MILLION OR 55 CENTS A SHARE FROM 311 MILLION OR 80 CENTS A SHARE A YEAR EARLIER SALES IN THE QUARTER DECLINED 11 TO 1467 MILLION FROM 1653 MILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS POSITIVE TRENDS THAT BEGAN IN THE THIRD QUARTER CONTINUED INTO THE FOURTH QUARTER HOWARD B WENTZ JR CHAIRMAN SAID I BELIEVE WE HAVE RESOLVED THE DIFFICULTIES OF THE FIRST HALF OF LAST YEAR AND PUT A SOLID FOUNDATION IN PLACE FOR 1994 AND BEYOND HE SAID THE COMPANY'S US MARKET SHARE FOR THE SECOND HALF OF 1993 WHEN TAMBRANDS BEGAN ITS NEW MARKETING STRATEGY WAS MORE THAN A FULL POINT HIGHER THAN IN THE FIRST HALF HE SAID A SPOKESMAN SAID THERE HAS BEEN A SIGNIFICANT DECLINE IN THE AMOUNT OF INVENTORY RETAILERS HAVE ON HAND HE NOTED THAT ALTHOUGH SALES TO THE TRADE OF TAMPAX TAMPONS DECREASED 14 IN THE US IN BOTH DOLLARS AND UNITS FOR THE FOURTH QUARTER UNITS OF TAMPONS PURCHASED BY CONSUMERS ROSE ABOUT 14 FROM THE 1993 FOURTH QUARTER WE EXPECT OUR SALES TO MUCH MORE CLOSELY MATCH CONSUMER PURCHASES IN 1994 THE SPOKESMAN SAID FOR THE YEAR NET FELL 48 TO 635 MILLION OR 164 A SHARE FROM 1214 MILLION OR 306 A SHARE SALES DECLINED 11 TO 6115 MILLION FROM 6841 MILLION REFLECTING LOWER VOLUMES CAUSED MOSTLY BY THE REDUCTION IN TRADE INVENTORIES WEAKENING OF EUROPEAN CURRENCIES AND THE 1992 DIVESTITURES OF THE MAXITHINS SANITARY PAD BUSINESS IN NORTH AMERICA AND THE PAD AND DIAPER BUSINESSES IN BRAZIL AND MEXICO EARNINGS FOR THE YEAR INCLUDED A ONETIME CHARGE OF 103 MILLION OR 27 CENTS A SHARE RELATED TO AN ACCOUNTING CHANGE FOR POSTEMPLOYMENT BENEFITS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TAMBRANDS CLOSED AT 43125 UP 125 CENTS 9402030152 940203 CANADIAN INSURERS ARE ADDING FRILLS TO POLICIES IN BID FOR CUSTOMER LOYALTY BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ASTRID CARRIERE A MOTHER OF FIVEYEAROLD TRIPLETS NEEDED HELP AROUND THE HOUSE AFTER SHE GAVE BIRTH TO HER FOURTH CHILD MATHIEU SO SHE CALLED HER HOMEINSURANCE COMPANY HER INSURANCE COMPANY AS PART OF THE OTTAWA WOMAN'S POLICY THE INSURER CANADIAN SURETY CO SENT A HOMEMAKER TO MS CARRIERE'S HOUSE FREE OF CHARGE THE HOMEMAKER WASHED DIAPERS SCRUBBED FLOORS AND FED THE OLDER KIDS FOR THREE DAYS GIVING THE NEW MOTHER MORE TIME TO RECUPERATE IT WAS WONDERFUL WE CAME HOME AND THE WHOLE HOUSE WAS SPOTLESS MS CARRIERE SAYS THE SERVICE IS PART OF CANADIAN SURETY'S HOME ASSISTANCE PROGRAM BELIEVED TO BE THE FIRST OF ITS KIND IN NORTH AMERICA UNDER THE PROGRAM POLICYHOLDERS ALSO CAN GET BABYSITTERS SENT TO THEIR HOMES IN AN EMERGENCY OR NURSING CARE WHEN RECOMMENDED BY A DOCTOR OTHER COMPANIES ALSO HAVE ADDED FRILLS TO THEIR POLICIES ONE INSURER KEEPS TRADESPEOPLE ON HAND TO GIVE TELEPHONE ADVICE ON SUCH PROBLEMS AS STOPPING A FLOODING TOILET THE OFFBEAT PROGRAMS REFLECT A GROWING TREND BY CANADIAN INSURANCE COMPANIES TO WIN CUSTOMER LOYALTY IN THE OVERCROWDED PROPERTY AND CASUALTYINSURANCE MARKET UNLIKE IN THE US WHERE STATE FARM AND ALLSTATE CORP DOMINATE THE HOME AND AUTOINSURANCE MARKETS THE CANADIAN INDUSTRY IS HIGHLY FRAGMENTED WHICH HAS LED TO STIFF PRICE COMPETITION ADDING TO THE INDUSTRY'S WOES ARE PLANS BY THE COUNTRY'S MAJOR BANKS TO BEGIN SELLING THEIR OWN INSURANCE PRODUCTS FOLLOWING RECENT FINANCIAL DEREGULATION THE BANKS ARE GOING TO COME IN WITH LOWCOST WELLTRAINED STAFF AND TOPNOTCH COMPUTERS THE CONVENTIONAL COMPANIES ARE ALL STUDYING HOW TO WITHSTAND THE ONSLAUGHT SAYS TED BELTON AN INDEPENDENT INSURANCEINDUSTRY ANALYST THE LOOMING BATTLE WITH THE BANKS IS EXPECTED TO SPARK WIDESPREAD CONSOLIDATION AMONG CANADA'S 220 PROPERTY AND CASUALTY INSURERS WHICH WRITE 14 BILLION CANADIAN DOLLARS US107 BILLION IN NEW BUSINESS A YEAR IN JANUARY FOR INSTANCE A SUBSIDIARY OF BRITAIN'S ROYAL INSURANCE HOLDINGS PLC ACQUIRED THE CANADIAN PROPERTY AND CASUALTY BUSINESS OF SUN ALLIANCE & LONDON INSURANCE PLC CONTINUING A STRING OF RECENT MERGERS IN THE INDUSTRY CANADIAN IMPERIAL BANK OF COMMERCE WAS THE FIRST OF THE COUNTRY'S BIG BANKS RECENTLY TO START ITS OWN INSURANCE SUBSIDIARY A KEY ADVANTAGE OVER TRADITIONAL INSURANCE COMPANIES IS THE BANK'S ABILITY TO CAPITALIZE ON CUSTOMER LOYALTY BY PITCHING ITS PRODUCTS DIRECTLY TO ITS LARGE NATIONWIDE CLIENT BASE OBSERVERS SAY CANADA'S INSURERS ARE RESPONDING TO THE NEW COMPETITIVE THREAT BY APPEALING DIRECTLY TO THEIR CUSTOMERS HOPING TO GENERATE LOYALTY OF THEIR OWN CURRENTLY CANADIANS BUY THE BULK OF THEIR HOME AND AUTO INSURANCE THROUGH BROKERS AND THUS KNOW LITTLE ABOUT THE COMPANIES ISSUING THE POLICIES OFTEN NOT EVEN THE FIRMS' NAMES MANY INSURERS ARE TOO SMALL TO SET UP THEIR OWN DIRECTMARKETING TEAMS BUT SOME ARE EXPERIMENTING WITH NEW KINDS OF APPROACHES TO CUSTOMERS SUCH AS CANADIAN SURETY'S HOME ASSISTANCE PROGRAM THERE'S ONLY SO FAR YOU CAN GO TO COMPETE IN SELLING FIRE AND THEFT INSURANCE WE WANT TO SHOW PEOPLE WE'RE ADDING VALUE TO THE POLICY FOR A VERY SMALL EXTRA CHARGE SAYS ROGER LONG VICE PRESIDENT PERSONAL INSURANCE AT CANADIAN SURETY A TORONTO SUBSIDIARY OF ASSURANCES GENERALES DE FRANCE MR LONG SAYS CANADIAN SURETY ADDED C10 US761 A YEAR TO THE PRICE OF ITS POLICIES TO COVER THE COST OF THE HOME ASSISTANCE PROGRAM MS CARRIERE THE CANADIAN SURETY POLICYHOLDER SAYS SHE WOULD USE THE ASSISTANCE PROGRAM AGAIN IT SHOWS THAT THE COMPANY MAY BE MORE SENSITIVE TO THE EVERYDAY NEEDS OF ITS CUSTOMERS SHE SAYS HOPING TO WIN SIMILAR LOYALTY FROM THEIR CUSTOMERS OTHER INSURERS ALSO HAVE BEGUN OFFERING SERVICES THAT HAVE LITTLE TO DO WITH INSURANCE ZURICH CANADA A UNIT OF SWITZERLAND'S ZURICH INSURANCE GROUP HAS A TELEPHONE ASSISTANCE LINE TO GIVE ADVICE ON EMERGENCY REPAIRS AROUND THE HOUSE SUCH AS LEAKY PLUMBING IT ALSO REFERS POLICYHOLDERS TO SELECTED AUTO MECHANICS AND HOUSE CONTRACTORS AND GUARANTEES THE WORK ITSELF AND DOMINION OF CANADA GENERAL INSURANCE CO A UNIT OF EL FINANCIAL CORP OF TORONTO OFFERS CUSTOMERS DISCOUNTS ON EYEGLASSES AND CONTACT LENSES IT'S GIVING PEOPLE VALUE FOR THEIR INSURANCE DOLLAR WITHOUT HAVING TO WAIT FOR AN ACCIDENT TO HAPPEN SAYS TONY LUPPINO SPOKESMAN AT ZURICH CANADA 9402030151 940203 CANADA'S CAE INC WRITES DOWN VALUE OF SIMULATOR UNIT BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CAE INC THE LARGEST SUPPLIER OF SIMULATORS AND TRAINING SYSTEMS TO THE US MILITARY WROTE DOWN THE VALUE OF ITS CAELINK MILITARYSIMULATION BUSINESS BY 3965 MILLION CANADIAN DOLLARS US2981 MILLION OR 60 CAE SAID THE WRITEDOWN COMES AMID THE COMPANY'S DISAPPOINTMENT THAT US DEFENSE OFFICIALS HAVEN'T EMBRACED TRAINING SIMULATORS AS A CHEAPER SUBSTITUTE FOR TRAINING PILOTS IN REAL AIRCRAFT THE TORONTO COMPANY HAD LONG ESPOUSED THE NOTION THAT CUTBACKS IN DEFENSE SPENDING WOULD LEAD TO GREATER USE OF SIMULATION DEVICES AS A MORE COSTEFFECTIVE MEANS OF TRAINING FOR MILITARY CONFLICTS CAE SAID IT ALSO SET ASIDE FROM ITS EARNINGS A C33 MILLION PROVISION TO COVER THE COSTS OF FURTHER REDUCTIONS IN OPERATIONS AND STAFF AT CAELINK WHICH IS BASED IN BINGHAMTON NY THE SPEED WITH WHICH THE MILITARY HAS SHIFTED TO TRAINING SIMULATORS HAS BEEN A LOT SLOWER THAN WE EXPECTED PILOTS LIKE TO FLY AIRPLANES THEY DON'T LIKE TO FLY SIMULATORS SAID JOHN CALDWELL CAE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE SIMULATION MARKET'S WEAKNESS IS A DIRECT CASUALTY OF DEFENSE CUTBACKS AS APPROPRIATIONS FOR NEW EQUIPMENT ARE DELAYED OR CANCELED THE NEED FOR NEW TRAINING DEVICES TRADITIONALLY THE BREAD AND BUTTER OF SIMULATOR BUILDERS ALSO IS CURTAILED MR CALDWELL SAID HE EXPECTS CAELINK'S ORDER BOOK FOR THE REST OF THE DECADE TO COMPRISE MAINLY LOWERVALUE CONTRACTS TO UPGRADE OR MODIFY EXISTING SIMULATORS CAE'S ORDER BACKLOG WAS C1 BILLION AT THE END OF LAST YEAR DOWN FROM C14 BILLION A YEAR EARLIER MR CALDWELL DECLINED TO DETAIL WHAT ADDITIONAL CUTBACKS IN OPERATIONS ARE PROPOSED AT CAELINK SAYING PLANS ARE STILL BEING WORKED OUT CAE IN RECENT YEARS HAS CUT THE SUBSIDIARY'S WORK FORCE BY MORE THAN HALF AND CONSOLIDATED MOST OF THE UNIT'S OPERATIONS AT THE BINGHAMTON HEADQUARTERS ANALYSTS SAID THE WRITEDOWN AT CAELINK WAS TO BE EXPECTED BECAUSE OF WEAKNESS IN THE INDUSTRY DECLINING VOLUMES IN BOTH CAE'S MILITARY AND COMMERCIAL AIRCRAFT SIMULATION BUSINESS HAVE RESULTED IN LOWER REVENUES TO THE COMPANY FOR SEVERAL YEARS CAE SHARES CLOSED YESTERDAY DOWN 375 CANADIAN CENTS AT C650 ON THE TORONTO STOCK EXCHANGE MR CALDWELL SAID THE SLOWDOWN AT CAELINK ADDS GREATER URGENCY TO THE COMPANY'S DRIVE TO DEVELOP NEW BUSINESSES TO BOLSTER REVENUES CAE IS ACTIVELY MARKETING SIMULATION DEVICES IN THE MEDICAL FIELD AND EXPECTS TO ROLL OUT NEW PRODUCTS IN COMING MONTHS HE SAID THE WRITEDOWN AND PROVISIONS RELATED TO CAELINK WERE RECORDED AGAINST CAE'S EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED DEC 31 AS A RESULT THE COMPANY HAD A LOSS FOR THE QUARTER OF C4187 MILLION OR C386 A SHARE COMPARED WITH A PROFIT OF C109 MILLION OR 10 CANADIAN CENTS A SHARE A YEAR EARLIER REVENUES WERE UP 4 TO C2639 MILLION IN THE QUARTER 9402030150 940203 TECHNOLOGY & HEALTH MOTOROLA TO UNVEIL HANDHELD DEVICE FOR WIRELESS DATA BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC PLANS TO ANNOUNCE NEXT MONTH THE FIRST PERSONAL COMMUNICATOR WITH THE BUILTIN ABILITY TO SEND DATA OVER A DIGITAL WIRELESS NETWORK THE COMPANY IS COMPETING WITH APPLE COMPUTER INC AMERICAN TELEPHONE & TELEGRAPH CO SONY CORP AND MANY OTHER COMPUTER AND CONSUMERELECTRONICS COMPANIES FOR A DOMINANT POSITION IN THE EMERGING MARKET FOR HANDHELD COMMUNICATORS MARKET RESEARCHERS ASSERT THAT MARKET WILL GROW AT ABOUT THE SAME RATE AS OR FASTER THAN CELLULAR PHONES WHICH WERE INTRODUCED 10 YEARS AGO AND NOW HAVE 15 MILLION USERS IN THE US ROBERT GROWNEY CHIEF OF MOTOROLA'S WIRELESS DATA DIVISION SAID IN AN INTERVIEW THAT THE NEW PRODUCT CALLED THE ENVOY WILL HAVE A BUILTIN MODEM TO SEND DATA BOTH OVER TELEPHONE LINES AND OVER THE ARDIS DATA NETWORK WHICH IS JOINTLY OWNED BY MOTOROLA AND INTERNATIONAL BUSINESS MACHINES CORP ARDIS PROVIDES WIRELESS DATA MESSAGING IN ALL MAJOR METROPOLITAN AREAS MR GROWNEY SAID THE PRODUCT WOULD BE ANNOUNCED AT A MOBILECOMPUTING CONFERENCE ON MARCH 7 AND SHIPPED EARLY IN THE SECOND HALF OF THE YEAR WIRELESS MESSAGING IS CONSIDERED THE MOST COMPELLING EARLY USE TO WHICH PERSONAL COMMUNICATORS WILL BE PUT OUR DEVICE IS GOING TO BE DIFFERENT FROM THE MUCH MALIGNED APPLE NEWTON AND AT&T'S UNSUCCESSFUL EO COMMUNICATOR MR GROWNEY SAID THE PRODUCT IS SMALL LIGHTWEIGHT DOESN'T USE MUCH IN THE WAY OF BATTERIES AND HAS INTEGRATED WIRELESS COMMUNICATIONS HE SAID MOTOROLA BASED IN SCHAUMBURG ILL PLANNED TO DEVELOP FUTURE MODELS WITH A WIRELESS MODEM THAT WOULD WORK WITH AN ARDIS RIVAL RAM MOBILE DATA AND WITH EMERGING WIRELESS NETWORKS SUCH AS CELLULAR DIGITAL PACKET DATA WHICH IS BEING PUSHED BY MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH RAM MOBILE IS A JOINT VENTURE BETWEEN BELLSOUTH CORP AND RAM BROADCASTING CORP MR GROWNEY SAID THE PRICE OF THE ENVOY HASN'T YET BEEN DETERMINED ADDING THAT WE ARE GOING TO HAVE MORE COMMUNICATIONS THAN COMPETITORS BUT I'M VERY SENSITIVE TO MAKING A MARKET THE PRICE IS GOING TO BE ATTRACTIVE SONY PLANS TO LAUNCH A PERSONAL COMMUNICATOR THIS SUMMER THAT CAN COMMUNICATE OVER TELEPHONE LINES BUT WON'T HAVE A BUILTIN WIRELESS MODEM THAT MODEL IS EXPECTED TO BE PRICED AT ABOUT 1000 OR SO 9402030149 940203 SMALL STOCK FOCUS STOCKS CLIMB ALONG WITH STRONG BONDS RUSSELL 2000 HITS ANOTHER RECORD HIGH BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE WEAKNESS IN THE MEDICAL SECTOR SMALLCOMPANY STOCKS ROSE HIGHER IN TANDEM WITH STRONG BONDS SENDING A KEY INDEX TO ANOTHER RECORD THE RUSSELL 2000 INDEX REACHED ITS 11TH RECORD CLOSE THIS YEAR RISING 112 POINTS OR 042 TO 26762 THE PREVIOUS RECORD OF 26652 WAS SET ON MONDAY THE BAROMETER WHICH TRACKS SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES HAD MEANDERED BETWEEN POSITIVE AND NEGATIVE TERRITORY EARLY IN THE DAY BUT A STEADY UPWARD MOVE IN BONDS HELPED EQUITIES ACROSS THE BOARD NASDAQ STOCKS PERFORMED WELL WITH THE NASDAQ COMPOSITE INDEX CLIMBING 233 POINTS OR 029 TO 79957 JUST SHY OF ITS RECORD CLOSE OF 80047 SET MONDAY ADVANCING NASDAQ ISSUES CAME BACK TO OVERTAKE DECLINERS 1534 TO 1487 AFTER LAGGING EARLY IN THE SESSION TOTAL NASDAQ VOLUME EASED TO 334955000 SHARES FROM 339754200 TUESDAY NASDAQ NATIONAL MARKET VOLUME SLIPPED TO 282991700 SHARES TODAY FROM 286766400 PAUL STANTON HEAD OF OVERTHECOUNTER TRADING AT JOHNSTON LEMON & CO SAID MEDICAL STOCKS FELL IN SYMPATHY WITH A SLIDE IN BIOTECHNOLOGY LEADER AMGEN'S STOCK PRICE THE THOUSAND OAKS CALIF COMPANY DROPPED 3 TO 44 AFTER REPORTING WEAKER FOURTHQUARTER EARNINGS OF 64 CENTS A SHARE DOWN FROM 91 CENTS ON A GAIN A YEAR EARLIER ANALYSTS HAD EXPECTED EARNINGS OF 66 CENTS IF AMGEN TAKES ONE STEP DOWN EVERYBODY IN THE GROUP STEPS DOWN MR STANTON SAID REHABILITY A BRENTWOOD TENN PROVIDER OF OUTPATIENT REHABILITATION SERVICES SLIPPED 3/4 TO 10 BIOCHEM PHARMA A CANADIAN DEVELOPER OF THERAPEUTIC PRODUCTS WAS OFF 5/8 TO 12 AND SHEFFIELD MEDICAL TECHNOLOGIES HOUSTON LOST 7/8 TO 8 1/8 ON THE AMERICAN STOCK EXCHANGE BUT OTHER GROUPS ATTRACTED BUYING AND PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INC SAID INVESTORS ARE STILL FEELING OPTIMISTIC TRANSPORTATION ISSUES SURGED HEARTLAND EXPRESS CORALVILLE IOWA SOARED 4 1/4 TO 36 1/2 AND TNT FREIGHTWAYS ROSEMONT ILL ADDED 1 3/4 TO 26 3/4 WISCONSIN CENTRAL TRANSPORTATION GAINED 2 TO 63 THE ROSEMONT ILL RAILROAD FREIGHT TRANSPORTATION CONCERN SAID FOURTHQUARTER NET INCOME JUMPED TO 96 CENTS A SHARE FROM 48 CENTS A YEAR EARLIER IN THE TECHNOLOGY GROUP SYMANTEC ROSE SHARPLY AFTER THE COMPANY REPORTEDLY BACKED ANALYSTS' FISCAL FOURTHQUARTER EARNINGS ESTIMATES OF ABOUT 21 CENTS A SHARE WHICH COMPARES WITH A LOSS OF THREE CENTS IN THE YEAREARLIER QUARTER SHARES OF THE CUPERTINO CALIF SOFTWARE PRODUCTS FIRM CLIMBED 1 7/8 TO 15 3/8 AMONG NEW ISSUES ESMOR CORRECTIONAL SERVICES ROSE TO 8 1/4 WELL ABOVE ITS OFFERING PRICE OF 6 1/4 THE NEW YORKBASED COMPANY MANAGES JAILS PRISONS AND HALFWAY HOUSES FOR LOCAL AND STATE GOVERNMENTS AND THE FEDERAL GOVERNMENT A NOTABLE DECLINER WAS PACE AMERICAN GROUP TUCSON ARIZ WHICH PLUMMETED 3 1/2 OR 45 TO 4 1/4 ON TUESDAY THE UNDERWRITER OF SURETY BONDS SAID ITS BOARD WAS BEGINNING AN INTERNAL INVESTIGATION INTO ALLEGATIONS THAT CERTAIN FORMER AND PRESENT SENIOR MANAGERS ENGAGED IN IMPROPER TRANSACTIONS INVOLVING PACE'S BUSINESS BIG BOARDTRADED CAPITAL GUARANTY FELL 1 3/4 TO 17 3/4 AS BROKERGE FIRMS REVISED THEIR EARNINGS ESTIMATES AND INVESTMENT OPINIONS FOLLOWING THE SAN FRANCISCO INSURER'S LOWERTHANEXPECTED FOURTHQUARTER PROFIT ELECTROLUX OF SWEDEN SURGED 6 1/8 TO 51 1/4 THE HOUSEHOLD APPLIANCES CONCERN REPORTED A PRELIMINARY 52 INCREASE IN 1993 PRETAX PROFIT AFTER FINANCIAL ITEMS DURIRON MOVED 2 3/4 HIGHER TO 27 3/4 ON THE BIG BOARD FOLLOWING A POSITIVE EARNINGS FORECAST THE DAYTON OHIO MAKER OF FLUIDHANDLING EQUIPMENT SAID IT EXPECTS TO SIGNIFICANTLY EXCEED ANALYSTS' EARNINGS ESTIMATES OF ABOUT 36 CENTS A SHARE FOR THE FOURTHQUARTER TESORO PETROLEUM GAINED 1 1/4 TO 11 5/8 ON THE NEW YORK STOCK EXCHANGE THE SAN ANTONIO TEXAS COMPANY'S SHARES ROSE AFTER CNBC CORRESPONDENT DAN DORFMAN CITED AN ANALYST'S VIEW THAT TESORO IS IN THE MIDST OF A MAJOR TURNAROUND ALSO ON THE NYSE OHM CORP GAINED 1 5/8 TO 15 5/8 THE FINDLAY OHIO PROVIDER OF ENVIRONMENTAL REMEDIATION SERVICES SAID IT HAS RECEIVED A NAVY CONTRACT THAT INCLUDING OPTIONS HAS A TOTAL POTENTIAL VALUE OF 250 MILLION OVER FIVE YEARS 9402030148 940203 WHO'S NEWS BROCK EXPLORATION CORP BROCK EXPLORATION CORP NEW ORLEANS JOHN W OWENSBY 66 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OIL AND NATURALGAS COMPANY INCREASING THE NUMBER OF BOARD MEMBERS TO EIGHT MR OWENSBY IS CHIEF EXECUTIVE OFFICER OF PETROMARINE ENGINEERING OF TEXAS INC PETROMARINE ENGINEERING INC AND DATEC INC PRESIDENT OF WORKNET CORP AND VICE PRESIDENT OF OWENSBY & KRITIKOS INC 9402030147 940203 MARKETSHARE STUDY FINDS GAIN AT COKE PEPSICO LOSS ATLANTA IN THE SLUGGISH SOFTDRINK INDUSTRY LAST YEAR COCACOLA CO GAINED US MARKET SHARE WHILE RIVAL PEPSICO INC'S SHARE FELL A NEW STUDY SHOWS IN THE SOFTDRINK INDUSTRY MARKETSHARE MOVEMENTS ARE A CLOSELY WATCHED MEASUREMENT OF COMPANY PERFORMANCE FIGURES WERE RELEASED YESTERDAY BY THE MAXWELL CONSUMER REPORT ON THE SOFTDRINK INDUSTRY AN ANNUAL STATISTICAL SURVEY OF BEVERAGE TRENDS ACCORDING TO THE MAXWELL REPORT COCACOLA INCREASED ITS SHARE OF THE MARKET TO 411 FROM 406 IN 1992 PEPSICO'S SHARE SLIPPED TO 308 FROM 313 IN 1992 INDUSTRY EXPERTS SAID MUCH OF COKE'S STRENGTH CAN BE ATTRIBUTED TO ITS STRONG GAINS IN THE FOUNTAIN INDUSTRY MEANWHILE PEPSI'S TOP TWO BRANDS PEPSI AND DIET PEPSI POSTED LACKLUSTER PERFORMANCE DIET PEPSI LOST ITS RANKING AS THE FOURTH BESTSELLING DRINK TO DR PEPPER ACCORDING TO BEVERAGE DIGEST A TRADE PUBLICATION THAT YESTERDAY RELEASED A MARKETSHARE REPORT THE MAXWELL REPORT ESTIMATES THAT THE TOTAL SOFTDRINK INDUSTRY GREW AT 29 IN 1993 EXCLUDING TEA PRODUCTS THAT COMPARES WITH A 15 GROWTH RATE IN 1992 THE 1990S HAVE PROVED TO BE A TIME OF MUCH SLOWER GROWTH THAN THE PAST DECADE WHEN THE INDUSTRY WAS POSTING VOLUME GAINS OF 5 TO 7 THE MARKET SHARE FOR COLAS CONTINUED TO DROP TO 67 OF THE MARKET COMPARED WITH 683 IN 1992 ACCORDING TO THE MAXWELL REPORT THE MARKET SHARE FOR DIET SOFT DRINKS ALSO DECLINED FOR THE SECOND YEAR IN A ROW 9402030146 940203 WHO'S NEWS MARRIOTT INTERNATIONAL INC MARRIOTT INTERNATIONAL INC WASHINGTON THE COMPANY'S MARRIOTT LODGING DIVISION NAMED TODD CLIST AND ED FULLER TO THE NEWLY CREATED POSTS OF EXECUTIVE VICE PRESIDENTS MR CLIST 52 YEARS OLD WILL HAVE RESPONSIBILITY FOR HOTELS IN THE US AND CANADA HE PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENT FOR THE FAIRFIELD INN AND COURTYARD SEGMENTS OF THE DIVISION MR FULLER 48 WHO WILL OVERSEE THE COMPANY'S PROPERTIES IN COUNTRIES OUTSIDE THE US AND CANADA PREVIOUSLY WAS SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF MARRIOTT LODGING INTERNATIONAL THE PARENT IS A HOTEL AND MANAGEMENT SERVICES CONCERN 9402030145 940203 FINANCING BUSINESS RIO ALGOM LTD RIO ALGOM LTD SAID IT PLANS TO RAISE GROSS PROCEEDS OF 180 MILLION CANADIAN DOLLARS US1353 MILLION THROUGH AN ISSUANCE OF SHARES AND SHAREPURCHASE WARRANTS THE UNITS AREN'T REGISTERED FOR SALE IN THE US THE TORONTO MINING COMPANY SAID IT HAS AGREED WITH UNDERWITERS TO SELL EIGHT MILLION UNITS AT C2250 EACH EACH UNIT WILL COMPRISE ONE COMMON SHARE AND ONE HALF OF A WARRANT EACH FULL WARRANT WILL ENTITLE THE HOLDER WITHIN TWO YEARS TO BUY ONE COMMON SHARE FOR C25 RIO ALGOM CURRENTLY HAS ABOUT 437 MILLION SHARES OUTSTANDING THEY CLOSED YESTERDAY AT C22125 DOWN 50 CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE THE AGREEMENT WITH THE UNDERWRITERS IS SUBJECT TO REGULATORY APPROVAL PROCEEDS WILL BE USED TO REDEEM C215 MILLION OF PREFERRED SHARES AND FOR GENERAL CORPORATE PURPOSES INCLUDING THE POSSIBLE EXPANSION OF THE CERRO COLORADO MINE IN CHILE 9402030144 940203 ENTERPRISE NEW YORK MAYOR URGES TAX CUTS TO SPUR ECONOMY BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW YORK'S NEW REPUBLICAN MAYOR PROPOSED TAX REDUCTIONS AIMED AT STIMULATING ECONOMIC GROWTH AND HELPING SMALL BUSINESS IN THE NATION'S LARGEST CITY THE PROPOSALS BY MAYOR RUDOLPH W GIULIANI INCLUDE LOWERING TAXES ON COMMERCIAL RENTS WHICH HAVE BEEN AN ESPECIALLY SORE POINT WITH SMALL BUSINESSES HERE THE MAYOR ALSO SEEKS TO ELIMINATE THE CITY'S PORTION OF THE SALES TAX ON ITEMS OF CLOTHING UNDER 100 A MEASURE AIMED AT STIMULATING RETAIL SALES THOSE IDEAS ARE ONLY A TINY PART OF THE MAYOR'S NEWLY UNVEILED FINANCIAL PLAN FOR FISCAL YEARS 1994 THROUGH 1998 AND THEY FALL SHORT OF WHAT MANY SMALLBUSINESS OWNERS WANT SUCH AS MEASURES TO CONTROL ACTUAL RENTS STILL THEY MAY COME AS PLEASANT SURPRISES FOR ENTREPRENEURS WHO KNOW THE CITY IS STRUGGLING TO CLOSE HUGE PROJECTED BUDGET GAPS THE PLAN AS A WHOLE CALLS FOR TOTAL EXPENDITURES OF 32 BILLION IN THE FISCAL YEAR ENDING JUNE 30 1995 THAT WOULD BE A SPENDING CUT OF 617 MILLION FROM FISCAL 1994 THE LOWEST PROJECTED SPENDING RATE SINCE 1975 CITY OFFICIALS SAID SOME 15000 MUNICIPAL JOBS WOULD BE ELIMINATED BY THE END OF FISCAL 1995 MR GIULIANI WHO ASSUMED OFFICE LAST MONTH SAID HE AIMS TO CUT THE CITY GOVERNMENT TO AN AFFORDABLE SIZE STRENGTHEN THE CITY'S ABILITY TO PROVIDE ESSENTIAL SERVICES AND ENCOURAGE PRIVATE ECONOMIC GROWTH ONE OF THE REASONS NEW YORK CITY'S ECONOMY HAS LAGGED OTHER PARTS OF THE US IS THE HIGH TAX BURDEN THE CITY'S OFFICE OF MANAGEMENT AND BUDGET SAID IN A DOCUMENT OUTLINING THE NEW FINANCIAL PLAN IF THE STIMULUS PACKAGE AS PROPOSED BY THE MAYOR IS EVENTUALLY INCLUDED IN AN ACTUAL CITY BUDGET IT WILL BEGIN WITH A REDUCTION IN THE HOTEL TAX TO 5 FROM 6 EFFECTIVE DEC 1 SEPARATELY DEMOCRATIC GOV MARIO CUOMO HAS PROPOSED REPEALING THE STATE'S EXTRA 5 TAX ON ROOMS THAT RENT FOR MORE THAN 100 A NIGHT THE CITY HOTELTAX CUT WOULD SAVE PAYERS OF THE TAX AN ESTIMATED 7 MILLION IN FISCAL 1995 AND CITY OFFICIALS HOPE THE CUT WOULD HELP CITY HOTELS ATTRACT AND RETAIN BUSINESS THE PORTION OF BUSINESSES EXEMPT FROM PAYING COMMERCIALRENT TAXES MAINLY SMALL COMPANIES WOULD RISE SHARPLY CITY OFFICIALS SAID THE CITY WOULD PHASE IN INCREASES IN THE THRESHOLD BASED ON RENT PAID THAT DETERMINES WHICH CONCERNS MUST PAY THE TAX EVENTUALLY THE TAX WOULD BE ELIMINATED EXCEPT IN MANHATTAN SOUTH OF 96TH STREET BY FISCAL 1997 ANNUAL TAX RELIEF FROM THESE CHANGES WOULD BE 112 MILLION ACCORDING TO THE MAYOR'S PLAN OFFICIALS SAID THAT ELIMINATING THE CITY PORTION OF THE SALES TAX ON ITEMS OF CLOTHING UNDER 100 WOULD SAVE CONSUMERS 218 MILLION ANNUALLY BY FISCAL 1997 WHEN THE CHANGE WOULD BE FULLY EFFECTIVE 9402030142 940203 JONES INTERCABLE ACQUISITIONS ENGLEWOOD COLO A PARTNERSHIP LED BY JONES INTERCABLE INC SAID IT BOUGHT FOUR UNITED KINGDOM CABLE COMPANIES FROM PACTEL CABLE THE TERMS WEREN'T DISCLOSED THE COMPANIES ARE PETERBOROUGH CABLEVISION LTD NORWICH CABLEVISION HOLDING CO BROADLAND CABLEVISION HOLDING CO AND FENLAND CABLEVISION HOLDING CO TOGETHER THEY REPRESENT ABOUT 225000 FRANCHISELICENSED HOMES IN THE UK PACTEL CABLE IS A UNIT OF PACIFIC TELESIS GROUP 9402030141 940203 CHRYSLER RECALLING DODGE RAM PICKUPS FOR THE SECOND TIME HIGHLAND PARK MICH CHRYSLER CORP IS RECALLING 17800 OF ITS NEW DODGE RAM PICKUPS THE SECOND RECALL SINCE THE VEHICLES WENT ON SALE IN THE FALL THE RECALL INVOLVES A RELATIVELY MINOR SEAT LATCH PROBLEM BUT THE LATEST RECALL AND A RECENTLY ANNOUNCED RECALL OF JEEP GRAND CHEROKEES COULD PROVE MAJOR OBSTACLES TO THE CHRYSLER'S EFFORT TO CREATE AN IMAGE OF ITSELF AS THE WORLD'S PREMIER AUTO MAKER LIKE THE GRAND CHEROKEES THE DODGE RAMS WERE BUILT AND DESIGNED UNDER A NEW APPROACH THAT KEEPS DOWN INVESTMENT COSTS BY RELYING ON SUPPLIERS TO DESIGN PARTS BUT THE VEHICLES WERE RECALLED BECAUSE OF GLITCHES IN SUPPLIERPROVIDED PARTS IN AN EFFORT TO BETTER UNDERSTAND HOW CUSTOMERS RESPOND TO RECALLS CHRYSLER IS TESTMARKETING AT LEAST THREE SEPARATE RECALL APPROACHES TO THE DODGE RAM PROBLEM ACROSS THE COUNTRY IN SOME INSTANCES CUSTOMERS ARE DROPPING OFF THEIR CARS AND HAVING THE PROBLEMS FIXED IN OTHER CASES CUSTOMERS ARE RECEIVING FREE GIFTS SUCH AS A CAR WASH OR A TEMPORARY REPLACEMENT VEHICLE AND IN SOME CASES DODGE DEALERS ARE PICKING UP THE TRUCKS TO CORRECT THE PROBLEMS AFTER THE RECALL IS CONCLUDED CHRYSLER WILL SURVEY THE TRUCK OWNERS IN AN EFFORT TO SEE HOW BEST TO HANDLE FUTURE RECALLS CHRYSLER SAID AT ISSUE IN THE LATEST RAM RECALL COVERING TRUCKS BUILT BETWEEN JULY AND LATE OCTOBER OF 1993 IS THE LATCH THAT PREVENTS THE SEAT BACK FROM FALLING FORWARD CHRYSLER SAID NO INJURIES OR ACCIDENTS HAVE BEEN REPORTED AS A RESULT OF THE PROBLEM IN NOVEMBER CHRYSLER RECALLED 2000 RAMS BUILT BEFORE SEPT 25 BECAUSE OF A FRONT SUSPENSION BOLT 9402030140 940203 WHO'S NEWS CU BANCORP CU BANCORP ENCINO CALIF JON P GOODMAN 51 YEARS OLD RESIGNED AS CHAIRMAN AND A DIRECTOR OF THIS BANKING CONCERN AND ITS CALIFORNIA UNITED BANK NA UNIT SHE WAS SUCCEEDED AS CHAIRMAN OF CU BANCORP BY PAUL W GLASS A 47YEAROLD DIRECTOR DR GOODMAN INFORMED THE BOARD THAT SHE HAS SUCCEEDED IN HELPING RETURN THE BANK TO STABILITY AND WANTS TO SPEND MORE TIME AS A DIRECTOR OF THE ENTREPRENUER PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA MR GLASS IS A PRINCIPAL IN THE ENCINO ACCOUNTING FIRM OF GLASS & ROSEN IN RELATED MOVES STEPHEN G CARPENTER 53 WAS ELECTED CHAIRMAN OF CALIFORNIA UNITED BANK WHERE HE WILL CONTINUE TO SERVE AS AS CHIEF EXECUTIVE DAVID I RAINER 36 WAS NAMED PRESIDENT OF THE BANK WHERE HE WILL CONTINUE AS CHIEF OPERATING OFFICER 9402030139 940203 ROGERS COMMUNICATIONS PLANS OFFER OF 203 BILLION FOR 83 OF MACLEAN BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROGERS COMMUNICATIONS INC SAID IT PLANS TO MAKE AN OFFER VALUED AT 27 BILLION CANADIAN DOLLARS US203 BILLION FOR 83 OF MACLEAN HUNTER LTD IF THE BID WHICH WAS UNSOLICITED IS SUCCESSFUL IT WOULD CREATE A MEDIA COMPANY THAT WOULD CONTROL A THIRD OF CANADIAN CABLE TELEVISION TED ROGERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS AND CABLETELEVISION COMPANY HAS PURCHASED SHARES REPRESENTING 83 OF MACLEAN HUNTER WHICH WOULD IN TURN BE SOLD TO ROGERS COMMUNICATIONS AS PART OF THE PLANNED BID MR ROGERS SAID HIS COMPANY'S BOARD WILL MEET TOMORROW TO DETERMINE THE PRICE AND TERMS OF THE OFFER ADDING THAT THE OFFER WILL BE MOSTLY CASH WITH SOME ROGERS COMMUNICATIONS SHARES THE COMPANY WON'T OFFER TO PURCHASE THE 17 OF MACLEAN HUNTER STOCK CONTROLLED BY THE COMPANY'S INDEPENDENT DIRECTORS NEWS OF THE ANNOUNCEMENT BOOSTED SHARES OF MACLEAN HUNTER AND OTHER CANADIAN CABLE COMPANIES MR ROGERS SAID CANADA HASN'T KEPT PACE WITH THE US IN CREATING LARGE POWERFUL MULTIMEDIA COMPANIES IF WE ARE TO MAINTAIN A DISTINCTIVE CANADIAN VOICE HE SAID IT IS ESSENTIAL TO BUILD COMPANIES OF COMPARABLE SCALE AND SOPHISTICATION IN ADDITION TO ITS CABLE OPERATIONS MACLEAN HUNTER ALSO OWNS 62 OF THE TORONTO SUN PUBLISHING CO AND HAS INTERESTS IN MAGAZINES AND RADIO IT ALSO HAS 540000 US CABLE SUBSCRIBERS AND PUBLISHING INTERESTS IN THE US MR ROGERS SAID IF THE OFFER IS SUCCESSFUL THE NEW COMPANY WOULD LIKELY TRY TO SELL MACLEAN HUNTER'S US CABLE INTERESTS BUT KEEP THE REMAINING ASSETS INTACT MACLEAN HUNTER DIDN'T APPEAR TO WELCOME ROGERS'S ADVANCES WHICH IT DISCLOSED YESTERDAY MORNING BEFORE ITS SUITOR HAD DECIDED ON TERMS FOR THE BID OR LINED UP ALL ITS FINANCING MACLEAN HUNTER SAID IT WAS APPROACHED BY MR ROGERS AND DECIDED TO DISCLOSE THAT INFORMATION WHEN IT BECAME APPARENT ROGERS COMMUNICATIONS INTENDED TO MAKE A BID RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAID THE COMPANY WILL LOOK AT ALL OUR OPTIONS IF ROGERS PROCEEDS WITH A BID HE SAID THE COMPANY WANTS TO CONSIDER THE BEST INTERESTS OF ITS SHAREHOLDERS EMPLOYEES AND THE CONSUMERS OF ITS NEWSPAPERS AND OTHER PROPERTIES WE WANT TO MAKE SURE ALL THE PROPERTIES ARE IN SAFE AND STABLE HANDS HE SAID ROGERS COMMUNICATIONS SAID IT WOULD ARRANGE C2 BILLION IN DEBT FINANCING TO FUND THE OFFER THE COMPANY ALREADY HAD C27 BILLION IN LONGTERM DEBT AS OF JUNE 30 ROGERS COMMUNICATIONS IS CANADA'S LEADING CABLETELEVISION OPERATOR WITH 18 MILLION OF THE COUNTRY'S 72 MILLION HOUSEHOLD SUBSCRIBERS MACLEAN HUNTER RANKING FOURTH IN THE COUNTRY HAS ABOUT 700000 SUBSCRIBERS MR ROGERS 60 YEARS OLD OWNS ABOUT 89 OF THE VOTING SHARES OF ROGERS COMMUNICATIONS HE'S KNOWN FOR SPOTTING TRENDS EARLY IN THE HIGHTECHNOLOGY SERVICE SECTOR HE FORMED CANADA'S FIRST COMMERCIAL FM RADIO STATION AND MOVED INTO CABLE TELEVISION IN THE 1960S AND CELLULAR COMMUNICATIONS IN THE EARLY 1980S CABLE TV PENETRATED CANADIAN HOMES EARLIER AND FASTER THAN IN MOST OTHER COUNTRIES PARTLY BECAUSE OF MR ROGERS'S EFFORTS SOME ANALYSTS WERE PUZZLED BY ROGERS'S INTEREST IN MACLEAN HUNTER I'M JUST MYSTIFIED SAID STEVE GARMAISE A LONGTIME ROGERS COMMUNICATIONS ANALYST WITH FIRST MARATHON SECURITIES LTD IN TORONTO WITH ITS LARGE CABLE NETWORK AND A STAKE IN TELECOMMUNICATIONS CONCERN UNITEL COMMUNICATIONS INC ROGERS COMMUNICATIONS IS ALREADY WELL POSITIONED TO BECOME A MAJOR PLAYER IN THE EMERGING TECHNOLOGIES IN THE TELEVISION AND COMMUNICATIONS INDUSTRIES MR GARMAISE SAID I DON'T SEE WHAT MORE THIS ADDS ANDREW MCCREATH AN ANALYST WITH GORDON CAPITAL CORP IN TORONTO SAID ROGERS COMMUNICATIONS IS MAINLY INTERESTED IN MACLEAN HUNTER SO THAT IT CAN BEEF UP ITS CANADIAN CABLE HOLDINGS FOR THE MULTIMEDIA SERVICES THAT ROGERS WILL EVENTUALLY OFFER MACLEAN HUNTER'S SHARES JUMPED C1625 TO C15375 US1156 IN ACTIVE TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROGERS COMMUNICATIONS STOCK SANK 875 CANADIAN CENTS TO C21375 STOCKS OF OTHER CANADIAN CABLETELEVISION COMPANIES ROSE INCLUDING MONTREALBASED VIDEOTRON LTD UP 75 CANADIAN CENTS TO C29 AND SHAW COMMUNICATIONS INC OF EDMONTON ALBERTA UP C125 TO C2650 ANALYSTS CAUTIONED THAT BIDDING WARS WERE UNLIKELY FOR VIDEOTRON OR SHAW BECAUSE LIKE ROGERS THEY'RE EACH CONTROLLED BY A DOMINANT SHAREHOLDER WITH A MAJORITY OF VOTING STOCK ANY TAKEOVER OF MACLEAN HUNTER WOULD FACE A HURDLE WITH CANADIAN REGULATORS SINCE ROGERS WOULD BECOME BY FAR THE DOMINANT OPERATOR IN THE CANADIAN CABLE 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 9402030138 940203 TECHNOLOGY & HEALTH KNIGHTRIDDER BELL ATLANTIC SET INTERACTIVE PACT BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP LINED UP ANOTHER ALLY IN ITS PUSH INTO INTERACTIVE SERVICES AGREEING WITH NEWSPAPER PUBLISHER KNIGHTRIDDER INC TO DEVELOP NEWS ENTERTAINMENT AND ADVERTISING FOR DELIVERY INTO THE HOME THE TWO SIDES EXPECT TO SIGN A FINAL PACT IN A FEW MONTHS SAID ROBERT TOWNSEND VICE PRESIDENT OF THE VIDEO SERVICES UNIT AT BELL ATLANTIC A REGIONAL OPERATING COMPANY THAT PROVIDES LOCAL TELEPHONE SERVICE ACROSS THE MIDDLE ATLANTIC REGION BUT HE SAID THE PARTNERS HAD NO IDEA WHEN THEIR COLLABORATION MIGHT PRODUCE THE FIRST SERVICES OR WHERE OR HOW MUCH THEY WOULD COST OR EVEN WHAT THE FIRST OFFERINGS MIGHT LOOK LIKE THE AGREEMENT MARKS THE FIRST TIME BELL ATLANTIC HAS ALLIED WITH A MAJOR NEWSPAPER PUBLISHER FOR ITS INTERACTIVE EFFORTS AND IS FURTHER EVIDENCE THAT THE PUBLISHING INDUSTRY APPEARS TO BE TURNING TO THE BELLS TO HELP THEM LOOK FOR NEW DISTRIBUTION WAYS MR TOWNSEND SAID THE PACT MIGHT ALSO INDICATE BELL ATLANTIC DESPITE ITS PENDING ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC STILL DOESN'T HAVE ENOUGH PROGRAMMING TO MEET FUTURE NEEDS IT SAYS THE TCI DEAL WASN'T ENOUGH THAT THEY'RE STILL SCRATCHING AND REACHING WHEN IT COMES TO CONTENT SAID MARION BOUCHER A BEAR STEARNS & CO ANALYST FOR KNIGHTRIDDER THE PACT MARKS A RETURN TO INTERACTIVE SERVICES AFTER A RUDE INTRODUCTION IN THE 1980S THE COMPANY HAD EXPERIMENTED WITH A VIDEOTEX SERVICE CALLED VIEWTRON PULLING THE PLUG IN 1986 AFTER LOSING ABOUT 50 MILLION THEY LEARNED WHAT NOT TO DO SAID MR TOWNSEND A KNIGHTRIDDER SPOKESWOMAN SAID THE SERVICE FLOPPED PARTLY BECAUSE MOST PEOPLE DIDN'T USE COMPUTERS BACK THEN BELL ATLANTIC HOPES TO USE WHATEVER EMERGES FROM THE COLLABORATION TO PROMOTE ITS NEW STARGAZER BRAND OF VIDEO PRODUCTS AND SERVICES AT THE MOMENT IT IS AN EXPERIMENTAL SERVICE LIMITED TO A NAVIGATIONAL TOOL THAT LETS USERS SIFT THROUGH MOVIE LISTINGS AND INTERACTIVE SHOPPING SERVICES OVER BELL ATLANTIC'S NETWORK OTHER NEWSPAPER COMPANIES HAVE MADE RECENT MOVES TO GO ON LINE LAST MONTH WASHINGTON POST CO SIGNED AN ALLIANCE WITH ORACLE CORP WHICH IS A KEY SUPPLIER OF THE NEW TECHNOLOGY TO BELL ATLANTIC TO PUBLISH NEWS AND INFORMATION USING VIDEO AND SOUND FOR ONLINE DISTRIBUTION EARLIER NEW YORK TIMES CO ANNOUNCED PLANS TO LAUNCH AN ELECTRONIC VERSION OF ITS NEWSPAPER ON AMERICA ONLINE A COMPUTER SERVICE THAT ALREADY OFFERS THE CHICAGO TRIBUNE AND OTHER NEWSPAPERS JARED SANDBERG CONTRIBUTED TO THIS ARTICLE 9402030137 940203 WHO'S NEWS SILICON GRAPHICS INC NAMES MCCRACKEN TO SUCCEED CHAIRMAN MOUNTAIN VIEW CALIF AS ANTICIPATED SILICON GRAPHICS INC NAMED EDWARD R MCCRACKEN TO SUCCEED JAMES H CLARK CHAIRMAN AND FOUNDER MR MCCRACKEN 50 YEARS OLD HAS PLAYED THE NUTSANDBOLTS MAN TO MR CLARK'S ROLE AS VISIONARY WITHIN THE COMPANY IT WAS MR CLARK FOR EXAMPLE WHO WAS CREDITED WITH FORGING SILICON GRAPHICS RECENT MULTIMEDIA JOINT VENTURES WITH TIME WARNER INC AND NINTENDO BUT ANALYSTS SAID THEY DIDN'T EXPECT THE TRANSITION TO CAUSE ANY RIPPLES IN SILICON GRAPHICS' STRATEGY OF MOVING INTO OTHER DIGITAL MEDIA VENTURES SILICON GRAPHICS HAS A NUMBER OF VISIONARIES BESIDES JIM CLARK I WOULDN'T BE SURPRISED IF THEY HAD OTHER UNANNOUNCED PARTNERSHIPS ON THE BOARDS SAID LAURA CONIGLIARO OF PRUDENTIAL SECURITIES RESEARCH JIM CLARK'S VISION IS ALIVE AND WELL IN THE COMPANY SAID ROBERT HERWICK OF HAMBRECHT & QUIST ANALYSTS CITED AS PROOF SILICON GRAPHICS SEPARATE ANNOUNCEMENT YESTERDAY THAT FOREST BASKETT 50 THE COMPANY'S SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT WAS BEING GIVEN THE ADDITIONAL TITLE OF CHIEF TECHNOLOGY OFFICER DR BASKETT IS KNOWN AS ONE OF THE COMPANY'S LEADING INNOVATORS SILICON GRAPHICS SAID MR MCCRACKEN WILL RETAIN HIS TITLE AS CHIEF EXECUTIVE OFFICER HIS JOB AS PRESIDENT WILL SHIFT TO THOMAS JERMOLUK 37 MR JERMOLUK IN TURN WILL REMAIN CHIEF OPERATING OFFICER BUT THE COMPANY WILL RETIRE HIS OTHER TITLE OF EXECUTIVE VICE PRESIDENT 9402030136 940203 POLITICS & POLICY PERRY SAYS US MAY HAVE TO IMPOSE ECONOMIC SANCTIONS ON NORTH KOREA BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND THE UNITED NATIONS MAY SOON HAVE TO DECIDE WHETHER TO USE A VERY BIG STICK AND IMPOSE ECONOMIC SANCTIONS ON NORTH KOREA DEFENSE SECRETARYDESIGNATE WILLIAM PERRY SAID DEFENDING THE CLINTON ADMINISTRATION'S HANDLING OF THE STANDOFF OVER NORTH KOREA'S PURSUIT OF NUCLEAR WEAPONS MR PERRY APPEARED TO CONCEDE THAT US NEGOTIATORS THUS FAR HAVE OFFERED ONLY CARROTS TO THE NORTH KOREANS BUT HE WARNED AT HIS CONFIRMATION HEARING BEFORE THE SENATE ARMED SERVICES COMMITTEE THERE ARE STICKS DOWNSTREAM ALSO THE EFFICACY OF THE CONTEMPLATED ECONOMIC SANCTIONS WOULD LARGELY BE DETERMINED BY THE DEGREE TO WHICH CHINA BACKS THEM MR PERRY ADDED THUS HE ARGUED WHILE IT IS IMPORTANT TO SUPPORT HUMAN RIGHTS IN CHINA THAT GOAL WOULD PALE IN COMPARISON WITH THE PROSPECT OF NUCLEAR WAR ON THE KOREAN PENINSULA CONCEDING THAT NORTH KOREA MAY ALREADY POSSESS A NUCLEAR WEAPON MR PERRY SAID HIS BIGGEST CONCERN ISN'T WHETHER SUCH A WEAPON EXISTS BUT RATHER STOPPING NORTH KOREA FROM PURSUING A PENDING PROGRAM TO DEVELOP WHAT MAY BE DOZENS OF NUCLEAR BOMBS REFLECTING THE CONCERN THAT KOREA IS NOW PROVOKING IN THE ADMINISTRATION MR PERRY AT ONE POINT REFERRED TO KOREA IN A FREUDIAN SLIP AS THE NUCLEAR PENINSULA THE IDEA OF A TOUGHER STANCE AGAINST NORTH KOREA GAINED SUPPORT YESTERDAY IN THE SENATE ON VOICE VOTES SENATORS APPROVED TWO AMENDMENTS THAT SEEK INTERNATIONAL SANCTIONS AGAINST NORTH KOREA AND CALL FOR A RENEWED US NUCLEAR PRESENCE ON THE KOREAN PENINSULA MR PERRY IS EXPECTED TO BE CONFIRMED AS DEFENSE SECRETARY EASILY PERHAPS AS SOON AS TODAY JOHN DEUTCH CURRENTLY UNDERSECRETARY OF DEFENSE FOR ACQUISITION IS EXPECTED TO BE NOMINATED SOON TO SUCCEED MR PERRY AS DEPUTY DEFENSE SECRETARY THE PENTAGON'S NO 2 SLOT LIKE MR PERRY MR DEUTCH IS A TECHNOCRAT WITH A BACKGROUND IN ACADEMIA AND THE CARTER ADMINISTRATION IN SHARP CONTRAST TO HIS REPUTATION AS A MILITARY TECHNOLOGIST WITH AN UNSURE VOICE IN THE BROADER ISSUES OF NATIONAL SECURITY MR PERRY STAKED OUT STANCES ON A RANGE OF FOREIGNPOLICY QUESTIONS IN ADDITION TO HIS COMMENTS ON KOREA HE DISAGREED WITH A NONBINDING SENATE RESOLUTION PASSED LAST WEEK AND ARGUED AGAINST LIFTING THE UN ARMS EMBARGO ON THE BOSNIAN MUSLIMS AND HE APPEARED TO ENDORSE LIFTING THE TRADE EMBARGO ON VIETNAM MR PERRY ALSO PUT SOME RESPECTFUL DISTANCE BETWEEN HIMSELF AND DEFENSE SECRETARY LES ASPIN WHO WAS FORCED TO SUBMIT HIS RESIGNATION IN DECEMBER HE VOWED TO RESTRUCTURE WHAT HE CALLED THE PENTAGON'S INEFFECTIVE POLICYMAKING OPERATION WHICH CRITICS HAD SAID FOR MONTHS WAS A BUREAUCRATIC DISASTER THAT REFLECTED MR ASPIN'S MANAGERIAL FLAWS IN WHAT APPEARED TO BE A VEILED REFERENCE TO MR ASPIN'S SINGLE BIGGEST MISSTEP HIS SEPTEMBER DECISION TO REJECT A REQUEST FROM THE US COMMANDER IN SOMALIA FOR ARMORED VEHICLES MR PERRY IN HIS WRITTEN STATEMENT PLEDGED TO GIVE HIS MILITARY COMMANDERS THE REQUIRED SUPPORT AS THEY DIRECT OUR FORCES IN THE FIELD WE'RE VERY DIFFERENT PEOPLE MR PERRY SAID ABOUT HIMSELF AND MR ASPIN WHEN PRODDED BY THE COMMITTEE BUT OUR PHILOSOPHIES AND OUR OBJECTIVES WHAT WE'RE TRYING TO ACHIEVE AT THE PENTAGON ARE VERY SIMILAR IF ANYTHING MR PERRY IS EXPECTED TO ACCELERATE THE IMPLEMENTATION OF THE PENTAGON'S NEW ACTIVIST POLICY TO HELP THE DEFENSE INDUSTRY SHRINK BUT REMAIN HEALTHY THAT POLICY IS PROBABLY THE BIGGEST DEPARTURE THE PENTAGON HAS MADE UNDER THE CLINTON ADMINISTRATION YET ONLY ONE MEMBER OF THE GENERALLY CONSERVATIVE ARMED SERVICES PANEL CHALLENGED MR PERRY'S ADVOCACY OF IT SEN JOHN MCCAIN R ARIZ BRIEFLY RAISED THE ISSUE OF THE PENTAGON'S RECENT DECISION TO SPEND SEVERAL BILLION DOLLARS BUILDING A THIRD SEAWOLF ATTACK SUBMARINE EVEN THOUGH IT ISN'T NEEDED MILITARILY OTHER MEMBERS OF THE PANEL APPEARED SOMEWHAT COWED BY MR PERRY'S TECHNICAL AND FISCAL EXPERTISE MR PERRY ALSO SHOWED A NERVY WILLINGNESS TO TANGLE EVEN WITH COMMITTEE CHAIRMAN SAM NUNN D GA GIVING MR PERRY A CHANCE TO BACK DOWN FROM HIS WRITTEN TESTIMONY WHICH SAID THE B2 STEALTH BOMBER PROGRAM SHOULD STOP AT THE 20 AIRCRAFT PLANNED SEN NUNN RECOMMENDED THAT HE LOOK AT WHETHER HE MIGHT WANT TO HAVE NORTHROP CORP BUILD MORE B2 STEALTH BOMBERS IN THE FUTURE BUT MR PERRY DIDN'T TAKE THE BAIT AND POLITELY STOOD BY HIS VIEW THAT THE US BOMBER FORCE SHOULD SHRINK TO ABOUT 100 B1S AND B2S PLUS SEVERAL DOZEN ELDERLY B52S THE AIR FORCE CURRENTLY OPERATES 95 B1S 95 B52HS AND ONE B2 PLUS SIX B52GS THAT WILL BE RETIRED NEXT WEEK FOR A TOTAL BOMBER FLEET OF 197 AIRCRAFT SEEMING TO ISSUE A MORE GENERAL CHALLENGE TO CAPITOL HILL MR PERRY PROMISED IN HIS WRITTEN STATEMENT TO WORK WITH CONGRESS BUT HE CONTINUED I WON'T SHIRK FROM MAKING THE TOUGH CHOICES THAT STATEMENT APPEARED TO REFER TO THE FRUSTRATION HE AND OTHER SENIOR PENTAGON OFFICIALS HAVE FELT OVER THE PAST YEAR AS THEIR EFFORTS TO CUT OVERHEAD HAVE RUN INTO ROADBLOCKS PLACED BY LAWMAKERS TRYING TO PROTECT THE SECURE HIGHWAGE JOBS IN DEFENSE DEPARTMENT FACILITIES IN THEIR DISTRICTS TOUCHING ON ANOTHER MAJOR ACQUISITION ISSUE MR PERRY SAID THAT AS EXPECTED THE FISCAL 1995 DEFENSE BUDGET WILL CALL FOR BUILDING A NEW AIRCRAFT CARRIER THE CVN76 THAT SHIP WOULD BE BUILT BY TENNECO INC'S NEWPORT NEWS SHIPBUILDING & DRY DOCK CO THE DEFTNESS OF MR PERRY'S PERFORMANCE BEFORE THE COMMITTEE WAS SUMMED UP IN A SELFCRITICISM HE DELIVERED IN AN OFFHANDED WAY THE PRESS HAS OBSERVED THAT A PRINCIPAL DEFICIENCY I HAD FOR THIS JOB WAS BEING SOFTSPOKEN AND I WILL WORK VERY HARD TO OVERCOME THAT PROBLEM HE SAID 9402030134 940203 POLITICS & POLICY INSURERS FEAR THAT SUPERFUND CHANGES MAY NOT DO MUCH TO LOWER THEIR COSTS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL INSURANCE COMPANIES WHICH INITIALLY CHEERED THE CLINTON ADMINISTRATION'S PLAN TO REVISE THE SUPERFUND LAW NOW FEAR A NEW TAX IN THE PLAN WILL DO LITTLE TO EASE THEIR COSTS FOR CLEANING UP HAZARDOUSWASTE SITES NOW ESTIMATED AS ULTIMATELY COSTING AS MUCH AS 200 BILLION THE ADMINISTRATION'S PLAN TO REVISE THE SUPERFUND LAW SCHEDULED TO BE RELEASED TODAY PROPOSES WHAT'S EXPECTED TO BE A 31 BILLION ASSESSMENT OVER FIVE YEARS ON COMPANIES THAT WRITE COMMERCIAL PROPERTY AND CASUALTY INSURANCE THE MONEY WOULD GO INTO A TRUST FUND THAT COMPANIES WITH POLLUTION LIABILITIES CAN TAP FOR PART OF THEIR CLEANUP COSTS THE INDUSTRY HAD SUPPORTED THE TRUST FUND CONCEPT BECAUSE IT COULD SLASH LEGAL FEES WHICH ARE ONE OF THE BIGGEST COSTS NOW ASSOCIATED WITH CLEANING WASTE SITES BUT UPON FURTHER ANALYSIS OF THE CLINTON PLAN INSURERS WORRY THAT THE CHANGES MIGHT BE WORSE THAN THE STATUS QUO THAT'S BECAUSE THE ADMINISTRATION WOULD ALLOW POLLUTERS TO SIDESTEP THE TRUST FUND AND SUE THE INSURANCE COMPANIES TO PAY THE ENTIRE CLEANUP COSTS AS THEY DO NOW I'M PESSIMISTIC ABOUT THE PROPOSAL AT THIS POINT SAID JOHN ARLINGTON SENIOR COUNSEL FOR THE AMERICAN INSURANCE ASSOCIATION A LEADING INDUSTRY TRADE GROUP INSURANCE COMPANIES FEAR POLLUTERS WITH WEAK COURT CASES WOULD TAP THE TRUST FUND AND GET MORE MONEY THAN MERITED BY THEIR LEGAL POSITION MEANWHILE POLLUTERS WITH STRONG COURT CASES WOULD SUE AND GET MORE MONEY THAN THEY COULD FROM THE TRUST FUND IT'S THAT ESCAPE HATCH THAT IS SO DIFFICULT TO CALCULATE SAID JOHN MASCOTTE CHAIRMAN OF CONTINENTAL CORP CONTINENTAL AND OTHER INSURERS ARE NOW TRYING TO MAKE THOSE CALCULATIONS FIGURING WHETHER THEY WOULD PAY MORE OR LESS UNDER THE CLINTON PLAN THAN THEY DO NOW THEIR FINDINGS COULD DETERMINE WHETHER THE INSURANCE INDUSTRY DECIDES TO SUPPORT OR OPPOSE THE ADMINISTRATION BILL THERE'S A DISTINCT POSSIBILITY THAT THE REMEDY WILL COST MORE THAN IT CURRENTLY COSTS SAID DAVID FARMER A VICE PRESIDENT FOR THE ALLIANCE OF AMERICAN INSURERS ANOTHER INSURANCE TRADE ASSOCIATION INSURANCE EXPERTS SAY ANOTHER ISSUE IS WHETHER THE TRUST FUND WILL HAVE ENOUGH MONEY TO PAY ALL THE CLEANUP COSTS THE AVERAGE SUPERFUND SITE COSTS ABOUT 25 MILLION TO CLEAN IF THE FUND RUNS DRY WASHINGTON COULD IMPOSE AN EVEN HIGHER TAX ON THE INSURANCE INDUSTRY SAID JOHN SNYDER SENIOR VICE PRESIDENT FOR AM BEST CO NO BIGGER ISSUE FACES THE PROPERTY AND CASUALTY INSURANCE INDUSTRY THAN POLLUTION CLAIMS SAID KIDDER PEABODY & CO STOCK ANALYST STEVEN GAVIOS HE BELIEVES THE ULTIMATE COSTS FOR THE INSURANCE INDUSTRY WILL RANGE FROM 100 BILLION TO 200 BILLION IN PRETAX DOLLARS OVER THE NEXT SEVERAL YEARS THAT'S A STAGGERING AMOUNT FOR AN INDUSTRY WITH ANNUAL NET INCOME OF 10 BILLION TO 15 BILLION BY COMPARISION THE INSURERS PAID A TOTAL OF 22 BILLION ON HURRICANE AND OTHER CATASTROPHE CLAIMS DURING THE ENTIRE 1980S SOME INSURERS ARE LIKELY TO FAIL BECAUSE OF POLLUTION CLAIMS MR GAVIOS ESTIMATES BUT STRONGER PLAYERS WILL BE IN A MUCH BETTER SITUATION HE SAID AFTER THE POLLUTION ISSUE IS BEHIND THEM MOST OF THE POLLUTION CLAIMS MADE AGAINST INSURERS ARISE FROM GENERAL LIABILITY POLICIES WRITTEN IN THE 1950S 1960S AND 1970S INSURERS HAVE TRIED TO DENY PAYMENT ARGUING THAT THEY NEVER ENVISIONED POLLUTION CLAIMS AND THE STRICT ENVIRONMENTAL LAWS POLICYHOLDERS HAVE RESPONDED BY SUING THE INSURANCE COMPANIES AND IN ABOUT HALF THE CASES THEY'VE WON THE ADMINISTRATION'S PLAN WILL TRY TO STREAMLINE THE PROCESS BY CREATING A NOFAULT SYSTEM IN WHICH THE POLLUTERS WOULD TAP THE TRUST FUND FOR PART OF THEIR CLEANUP COSTS THE AMOUNT THEY'RE ELIGIBLE TO RECEIVE WOULD DEPEND ON THE HISTORY OF CLAIMS DISPUTES IN THEIR STATES IN STATES WHERE 60 OF THE CASES HAVE BEEN WON BY THE POLLUTERS THE POLLUTER COULD APPLY FOR A 60 RECOVERY WHERE POLLUTERS WON ONLY 20 OF THE CASES THEY WOULD BE ELIGIBLE FOR A 20 RECOVERY THE PROPOSAL DOES CONTAIN ONE SIGNIFICANT CONCESSION TO THE INSURANCE INDUSTRY HOWEVER IF ONE OF ITS POLICYHOLDERS CHOOSES TO USE TRUST FUND MONEY TO CLEAN UP A SITE THE FUND WILL INDEMNIFY THE INSURER FROM CLAIMS BY OTHER POLICYHOLDERS WHO POLLUTED THE SAME SITE AM BEST'S MR SNYDER ADDED THAT WELLRUN INSURERS WHICH ARE FAR ALONG THE ROAD TO SETTLING THEIR BIGGEST POLLUTION CLAIMS MIGHT FIGHT THE TRUST FUND APPROACH BECAUSE IT WOULD PUT THEM INTO THE POSITION OF BAILING OUT INSURERS THAT ARE LESS WELL MANAGED YOU COULD HAVE COMPANIES AT ODDS OVER THIS ISSUE HE SAID 9402030133 940203 IRS SEEKS TO EASE FEARS AS IT SLATES MUNIISSUE AUDITS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE IS PLANNING TO AUDIT AS MANY AS 200 MUNICIPALBOND ISSUES AND IS TRYING TO KEEP THE EFFORT FROM RATTLING INVESTOR CONFIDENCE IN THE MUNI MARKET THE MERE FACT THAT AN AUDIT IS UNDER WAY COULD HAVE A SPILLOVER EFFECT ON THE ABILITY OF AN ISSUER TO SELL NEW BONDS SAID MARCUS OWENS THE IRS OFFICIAL SPEARHEADING THE AGENCY'S INITIATIVE TO BEEF UP MUNICIPALBOND ENFORCEMENT THE PLANS FOR AUDITS WERE DISCLOSED BY MR OWENS ON MONDAY AT AN AMERICAN BAR ASSOCIATION GATHERING IN HOUSTON YESTERDAY HE ELABORATED ON THE AGENCY'S NEW APPROACH TO MUNI ENFORCEMENT AT A MEETING HERE OF THE GOVERNMENT FINANCE OFFICERS ASSOCIATION HE SAID THE AUDITS AIM TO ASSESS THE LEVEL OF VOLUNTARY COMPLIANCE WITH LAWS AND REGULATIONS GOVERNING TAXEXEMPT BONDS SEPARATE AUDITS WILL ADDRESS SPECIFIC SUSPECTED PROBLEMS SAID MR OWENS WHO ADDED THAT 30 SUCH AUDITS ALREADY ARE UNDER WAY AND THAT THE IRS HAS ANOTHER 100 OR SO LEADS OR COMPLAINTS REGARDING SUSPECTED PROBLEM ISSUES THAT NEED TO BE LOOKED INTO MR OWENS SAID THE AGENCY WILL STRIVE TO LIMIT PROBLEMS FOR BONDISSUING JURISDICTIONS WHOSE BONDS ARE BEING AUDITED HE NOTED THAT THE TAX CODE'S PENALTY FOR NONCOMPLIANCE IS TO DECLARE THE BONDS TAXABLE AND THAT THE BYTHEBOOK REMEDY IS FOR THE AGENCY TO TAX BONDHOLDERS HE SAID THIS IS A FAIRLY DRASTIC STEP BUT ONE THAT THE IRS HAS TAKEN AND WILL TAKE AGAIN BUT THE FAVORED ALTERNATIVE TO TAXING BONDHOLDERS THE IRS OFFICIAL SAID IS FOR THE AGENCY TO ENTER INTO SETTLEMENTS WITH ISSUERS OF BAD BONDS UNDER SUCH AGREEMENTS THE IRS RECEIVES CERTAIN FUNDS AND AGREES TO LEAVE BONDHOLDERS UNSCATHED TO LIMIT ANY ADVERSE SPILLOVER EFFECTS FROM THE DISCLOSURE OF AN AUDIT MR OWENS SUGGESTED THAT THE IRS AND THE ISSUER COULD MAKE IT CLEAR UPFRONT TO BONDHOLDERS AND POTENTIAL INVESTORS THAT ANY TAX PROBLEMS IDENTIFIED DURING A BOND AUDIT WOULD BE REMEDIED BY A SETTLEMENT NOT BY TAXING BONDHOLDERS MR OWENS SAID THE IRS IS COMMITTED TO HAVING A VERY REAL ENFORCEMENT PROGRAM AND THE RANDOM AUDIT OF UP TO 200 MUNI ISSUES IS NEEDED TO GET A STATISTICALLY RELIABLE UNDERSTANDING OF THE LEVEL OF VOLUNTARY COMPLIANCE HE SAID THE IRS WON'T DISCLOSE THE EXISTENCE OF SPECIFIC AUDITS BUT NOTED THAT SECURITIES LAW CONSIDERATIONS MAY FORCE BOND ISSUERS TO DISCLOSE THEY'RE BEING AUDITED OR THAT WORD OF THE AUDIT COULD BE LEAKED AND HE SAID SOME INVESTORS COULD SHY AWAY FROM BONDS OF A JURISDICTION BEING AUDITED BY THE IRS THE IRS HAS THE ASSURANCE OF BOND LAWYERS THAT EVERYTHING IS JUST FINE IN TERMS OF MUNIMARKET COMPLIANCE MR OWENS SAID BUT HE ADDED THAT HE TAKES SUCH ASSURANCES WITH A LARGE GRAIN OF SALT HE EXPLAINED THAT CRITICISM OF THE IRS'S PREVIOUS MUNIENFORCEMENT EFFORTS BY THE GENERAL ACCOUNTING OFFICE AND THE DESIRES OF IRS COMMISSIONER MARGARET RICHARDSON LED LAST SUMMER TO A COMPLETE REORDERING OF THE AGENCY'S MUNIENFORCEMENT EFFORTS WE ARE MINDING THE STORE NOW SAID MICHAEL BAILEY AN IRS OFFICIAL WHO ACCOMPANIED MR OWENS ADDING THAT THERE ARE VERY SIGNIFICANT DOLLARS AT STAKE 9402030132 940203 WHO'S NEWS BLACKSTONE BOOSTS ASSET MANAGEMENT WITH NEW PARTNER BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE BIG INSTITUTIONAL INVESTORS ARE BEING DRAWN TO THE BIG RISKS AND HEADY RETURNS OF PRIVATE HEDGE FUNDS AND ONE SIGN OF THE TREND IS AN APPOINTMENT BY BLACKSTONE GROUP INC YESTERDAY CLOSELY HELD BLACKSTONE SAID MICHAEL F HOLLAND JOINED THE INVESTMENT BOUTIQUE AS A GENERAL PARTNER TO EXPAND THE FIRM'S ASSETMANAGEMENT BUSINESS BLACKSTONE IS ONE OF SEVERAL FIRMS THAT ARE VYING TO HELP INSTITUTIONS FUNNEL INVESTMENT DOLLARS INTO AN ARRAY OF HEDGE FUNDS FOR A FEE AN INSTITUTION WILL TURN OVER A SUM TO BLACKSTONE WHICH WILL SPREAD IT AMONG SEVERAL HEDGE FUNDS TO MINIMIZE RISK MR HOLLAND'S JOB IS TO EXPAND THAT BUSINESS A GREGARIOUS 49 YEAR OLD HE IS A VETERAN OF SEVERAL SUCCESSFUL ASSETMANAGEMENT BUSINESSES AS VICE CHAIRMAN AT OPPENHEIMER & CO WHICH HE LEFT IN NOVEMBER MR HOLLAND ADDED SEVERAL PUBLICLY TRADED CLOSEDEND FUNDS TO THE FIRM'S MONEYMANAGEMENT BUSINESS PRIOR TO THAT MR HOLLAND WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ASSETMANAGEMENT OPERATION SALOMON BROTHERS LAUNCHED IN SPRING 1989 BY MARCH 1992 WHEN HE LEFT THE FIRM HAD ATTRACTED 15 BILLION FROM INSTITUTIONS AND WEALTHY INDIVIDUALS MR HOLLAND'S BIGGEST COUP DURING HIS TENURE AT SALOMON BROTHERS WAS THE LUCRATIVE CONTRACT TO MANAGE A 71 BILLION PORTFOLIO FOR THE RESOLUTION TRUST CORP MUCH OF THAT DISTRESSED SECURITIES FROM THRIFTS TAKEN OVER BY THE FEDERAL AGENCY FROM 1984 TO 1989 MR HOLLAND WAS CHIEF EXECUTIVE OF FIRST BOSTON ASSET MANAGEMENT CORP WHICH HE FOUNDED WHEN THE INVESTMENTBANKING FIRM BOUGHT HIS MONEYMANAGEMENT BUSINESS BLACKSTONE WITH 600 MILLION UNDER MANAGEMENT INCLUDING 140 MILLION OF PARTNERS' FUNDS IS IN ITS INFANCY COMPARED WITH MOREESTABLISHED MONEYMANAGEMENT BUSINESSES BUT STEPHEN A SCHWARZMAN THE FIRM'S PRESIDENT IS CONFIDENT THAT HE CAN ATTRACT ENOUGH FROM PENSION FUNDS AND OTHER INVESTORS TO REACH 1 BILLION UNDER MANAGEMENT WITHIN THE YEAR CURRENTLY BLACKSTONE MONITORS THE PERFORMANCE OF ABOUT 80 HEDGE FUNDS BUT INVESTS IN ONLY TWO DOZEN AT A TIME LAST YEAR THE FIRM RETURNED 30 FOR ITS 14 CLIENTS BEFORE SUBTRACTING A 125 MANAGEMENT FEE 9402030131 940203 INTERNATIONAL CALDERA PLEDGES INFLATION FIGHT FOR VENEZUELA BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL VENEZUELA'S NEW PRESIDENT RAFAEL CALDERA SAID THE NATION WOULD HAVE TO MAKE SACRIFICES TO OVERCOME ITS DEPENDENCE ON OIL BUT ADDED THAT A RECENTLY IMPOSED VALUEADDED TAX WAS AN UNJUST BURDEN THAT HE WOULD ATTEMPT TO REPEAL MR CALDERA WHO CAMPAIGNED AS A POPULIST TAKES OFFICE AT A MOMENT WHEN VENEZUELA'S ECONOMY IS WRACKED BY RECESSION HIGH INFLATION AND A SHAKY BANKING SYSTEM THE VENEZUELAN STOCK MARKET SURGED 74 YESTERDAY IN THE WAKE OF HIS INAUGURATION SPEECH A RISE THAT ANALYSTS ATTRIBUTED MORE TO THE BROAD GOALS MR CALDERA OUTLINED THAN TO THE SPECIFIC PROPOSALS HE PRESENTED IN GENERAL TERMS MR CALDERA PROMISED TO STRUGGLE INCESSANTLY AGAINST INFLATION HE SAID HE INTENDED TO PURSUE TRADE LIBERALIZATION PRIMARILY THROUGH RECIPROCAL TRADE AGREEMENTS AND HE PLEDGED GOVERNMENT AUSTERITY INCLUDING A REDUCED BUDGET THIS YEAR BUT MR CALDERA'S PROPOSAL TO SCALE BACK THE CONTROVERSIAL 10 VALUEADDED TAX RAISED QUESTIONS ABOUT HOW HE INTENDS TO CONTROL THE BUDGET DEFICIT WHICH SWELLED LAST YEAR TO 5 OF GROSS DOMESTIC PRODUCT THAT DEFICIT HAS FUELED SPIRALING PRICES THE VALUEADDED TAX WHICH WAS PROJECTED TO GENERATE REVENUES ROUGHLY EQUAL TO 3 OF GDP WAS DESIGNED TO COMPENSATE FOR BUDGET SHORTFALLS CAUSED BY THE DECLINE IN THE OIL REVENUES THAT HAVE LONG BEEN THE MAINSTAY OF VENEZUELA'S ECONOMY BUT SINCE IT WAS PUT INTO EFFECT LAST OCTOBER THE TAX HAS FACED CHALLENGES IN VENEZUELAN COURTS AND RESISTANCE FROM BOTH BUSINESSES AND CONSUMERS MR CALDERA SAID THAT HE WOULD SHORTLY PRESENT LEGISLATION TO ELIMINATE THE VALUEADDED TAX AND REPLACE IT WITH A SALES TAX THAT WOULD BE APPLIED SELECTIVELY AT THE WHOLESALE LEVEL HE ADDED THE REVISION IN THE VALUEADDED TAX WOULD BE PART OF A BROAD OVERHAUL OF THE TAX SYSTEM THAT WOULD PROVIDE FOR IMPROVED COLLECTION AND HIGHER INCOME TAXES ON THE WEALTHY MANY ANALYSTS WERE DUBIOUS SOME SAID MR CALDERA'S REVISED LEVY MIGHT ULTIMATELY BEAR A CLOSE RESEMBLANCE TO THE CURRENT VERSION OF THE TAX THEY ADDED THAT IT WAS UNCLEAR WHETHER MR CALDERA A POLITICAL INDEPENDENT WHOSE LOYALISTS HOLD ONLY 50 OF THE 199 SEATS OF THE LOWER HOUSE OF CONGRESS HAS THE CONGRESSIONAL SUPPORT TO REPEAL THE TAX THE OUTGOING FINANCE MINISTER CARLOS RAFAEL SILVA RECENTLY WARNED CONGRESS THAT A REPEAL OF THE TAX COULD CAUSE THE DEFICIT TO BALLOON TO 9 OF GDP EARLIER THIS WEEK MR CALDERA NAMED HIS CABINET WHICH INCLUDED AS FINANCE MINISTER JULIO SOSA RODRIGUEZ THE CHIEF OF A BANK AND CHEMICAL COMPANY AND THE FORMER VENEZUELAN AMBASSADOR TO THE US UPON BEING NAMED TO THE POST MR SOSA PLEASED INTERNATIONAL MARKETS BY IDENTIFYING INFLATION AS THE COUNTRY'S MAJOR PROBLEM NEVERTHELESS SOME IN VENEZUELA VIEW MR SOSA AS BEING ALIGNED WITH PROTECTIONIST INTERESTS WITHIN THE BUSINESS COMMUNITY WHILE WALL STREET REACTED FAVORABLY TO THE CABINET SOME ANALYSTS BASED IN VENEZUELA TENDED TO TAKE A LESS SANGUINE VIEW OF THE CALDERA TEAM THE CABINET BASICALLY IS MADE UP OF PEOPLE WHO ARE NOT VERY MARKET ORIENTED AND NOT PARTICULARLY EXPERIENCED AT RUNNING A GOVERNMENT SAYS ROBERT BOTTOME AN ECONOMIC ANALYST IN CARACAS 9402030130 940203 UTILITIES SETTLE LITIGATION AGAINST GE OVER PERRY NUCLEAR POWER PLANT IN OHIO BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL OPERATORS OF THE PERRY NUCLEAR POWER PLANT NEAR CLEVELAND SETTLED THEIR LAWSUIT WITH GENERAL ELECTRIC CO APPARENTLY ENDING A WAVE OF LITIGATION THAT HAD SOUGHT BILLIONS OF DOLLARS IN DAMAGES FROM GE FOR A DEFECTIVE CONTAINMENTVESSEL DESIGN TERMS CALL FOR GE TO MAKE A CASH PAYMENT AND PROVIDE DISCOUNTS ON FUTURE PURCHASES TO CENTERIOR ENERGY CORP'S CLEVELAND ELECTRIC ILLUMINATING CO AND TOLEDO EDISON CO UNITS OHIO EDISON CO AND ITS PENNSYLVANIA POWER CO UNIT AND DUQUESNE LIGHT CO THE AMOUNT OF THE CASH PAYMENT WASN'T DISCLOSED CITING A CONFIDENTIALITY AGREEMENT THE UTILITIES WOULDN'T SAY HOW CLOSE THE SETTLEMENT CAME TO INITIAL DAMAGE ESTIMATES A 1988 OHIO STUDY CITED BY THE PERRY UTILITIES HAD SAID GE'S DESIGN ERRORS CREATED HUNDREDS OF MILLIONS OF DOLLARS OF EXCESS COSTS THEIR SUIT FILED IN FEDERAL COURT IN CLEVELAND IN 1991 HADN'T SPECIFIED DAMAGES BUT ALLEGED BREACHOFCONTRACT AND FRAUD AND ASKED THAT ANY AWARD BE TREBLED THE UTILITIES DON'T EXPECT A MATERIAL IMPACT ON THEIR RESULTS BECAUSE THE PAYMENTS AND DISCOUNTS WILL BE RECORDED OVER A PERIOD OF YEARS THEY SAID GE WILL MAKE OUTLAYS TO THE FIVE ACCORDING TO THEIR OWNERSHIP OF THE PERRY PLANT THE CENTERIOR COMPANIES HAVE A 51 INTEREST 35 IS OWNED BY OHIO EDISON AND PENNSYLVANIA POWER AND DUQUESNE LIGHT HAS 14 GE SAID THE SETTLEMENT RESULTS IN THE PRESERVATION OF OUR RELATIONSHIP WITH A VALUED CUSTOMER A SPOKESMAN SAID THERE WEREN'T ANY SUITS REMAINING OVER THE CONTAINMENTVESSEL ISSUE AMONG OPERATORS OF THE 39 SOCALLED BOILINGWATER REACTORS IT HAS BUILT IN THE US HE WOULDN'T ESTIMATE THE FAIRFIELD CONN COMPANY'S TOTAL SETTLEMENT COSTS THE PROBLEMS WITH ITS STEELREINFORCED CONTAINMENT VESSELS SURFACED WHEN GE REPORTED IN 1974 THAT CERTAIN ACCIDENTS COULD DAMAGE THE STRUCTURES DESIGNED TO HOLD THE NUCLEAR FUEL IMMERSED IN WATER AND CREATE STEAM TO DRIVE TURBINES AND MAKE ELECTRICITY UTILITIES THAT HAD BOUGHT THE GE SYSTEMS CONTENDED THAT IN AN EARLY GE DESIGN AN EMERGENCY SHUTDOWN CHANNELING STEAM INTO SUPPRESSION POOLS UNDER THE CONTAINMENT VESSEL COULD CREATE VIOLENT WAVES THAT WOULD DAMAGE IT GE MAINTAINED THAT THE DESIGN PROBLEMS REFLECTED NUCLEAR REGULATORY COMMISSION REQUIREMENTS THAT HAD TAKEN EFFECT AFTER THE PLANTS WERE BUILT BUT A NUMBER OF UTILITIES CONTENDED THAT GE KNEW OF DESIGN FLAWS BEFORE IT SOLD THE PLANTS SAFETY WASN'T AN ISSUE IN THE DISPUTES BUT RATHER WHO WOULD PAY FOR REPAIRS THAT WERE MADE TO CONTAINMENT VESSELS TO PREVENT THE POTENTIAL PROBLEM GE HAS BEEN ABLE TO KEEP SETTLEMENT TERMS SECRET IN SEVERAL AGREEMENTS WITH UTILITIES AROUND THE COUNTRY IN MARCH 1992 WASHINGTON PUBLIC POWER SUPPLY SYSTEM SETTLED A LAWSUIT THAT HAD SOUGHT 12 BILLION WITHOUT TERMS BEING DISCLOSED LONG ISLAND LIGHTING CO ALSO SETTLED A SUIT THAT HAD SOUGHT 400 MILLION IN JUNE 1991 IN THE SAME MONTH HOWEVER PENNSYLVANIA POWER & LIGHT CO VALUED ITS SETTLEMENT FROM GE AT 80 MILLION IN CASH SERVICES AND DISCOUNTS AND ILLINOIS POWER CO WHICH SETTLED WITH GE WITHOUT FILING SUIT VALUED ITS PACKAGE OF DISCOUNTS ON GE EQUIPMENT SERVICES AND FUEL PURCHASES AT 65 MILLION 9402030129 940203 MARKETING & MEDIA MARKETSCAN HAIRCOLOR SALES RISE AS MORE BATTLE AGING BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL DOES SHE OR DOESN'T SHE CHANCES ARE EXCELLENT THAT SHE DOES AT HOME SALES OF ATHOME HAIR COLOR ARE RISING DRIVEN IN PART BY YOUTHOBSESSED BABY BOOMERS THIS IS A GENERATION OF PEOPLE WHO ARE ACCUSTOMED TO LOOKING AS GOOD AS THEY CAN POSSIBLY LOOK SAYS MARY ATHERTON EDITOR OF MODERN SALON MAGAZINE ALCIRA ESPARRAGOZA IS ONE SUCH PERSON A 40YEAROLD EMPLOYEE OF A NEW YORK FINANCIALSERVICES COMPANY SHE COLORS HER BROWN HAIR A NATURAL REDDISH BLOND EVERY FEW WEEKS BECAUSE IT JUST MAKES YOUR LIFE BETTER SHE SAYS TO MS ESPARRAGOZA REVEALING GRAY HAIR IS SIMPLY UNACCEPTABLE HAIRCOLOR SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS ROSE 144 IN THE YEAR ENDED NOV 14 ACCORDING TO INFORMATION RESOURCES INC A CHICAGOBASED RESEARCH FIRM AND DEMOGRAPHICS INDICATE THE TREND WILL CONTINUE THE NUMBER OF WOMEN IN THEIR 40S WILL RISE BY 27 IN THE NEXT DECADE REACHING 224 MILLION IN 2003 ACCORDING TO THE CENSUS BUREAU SALES FOR MEN'S PRODUCTS ARE RISING TOO ALTHOUGH THEY STILL REPRESENT ONLY 8 OF THE MARKET ACCORDING TO INFORMATION RESOURCES PERSONALCARE COMPANIES ARE RIDING THE TREND BY AGGRESSIVELY PROMOTING A STREAM OF SEMIPERMANENT PRODUCTS LIKE CLAIROL'S GLINTS CONDITIONING COLOR ENHANCER THAT COME IN A SINGLE BOTTLE AND WASH AWAY AFTER SIX SHAMPOOS L'OREAL THE HAIRCARE DIVISION OF COSMAIR INC INTRODUCED CASTING LAST SPRING A PRODUCT THAT COVERS GRAY BUT WEARS AWAY AFTER SIX WEEKS BUT AREN'T CONTEMPORARY WOMEN SUPPOSED TO BE EMBRACING THE NATURAL LOOK YES BUT THEIR DEFINITION OF NATURAL HAS CHANGED SAYS LILLIAN MARESCH WHO RESEARCHES ATTITUDES OF BABY BOOMERS AT GENERATION INSIGHTS A MARKETING CONSULTING FIRM IN TONKA BAY MINN THE NEW PRODUCTS ALLOW WOMEN TO APPEAR TO SLOW RATHER THAN ARREST THE AGING PROCESS WOMEN ARE LOOKING TO PERHAPS MINIMIZE WITHOUT TOTALLY OBLITERATING THE SIGNS OF GRAY MS MARESCH SAYS THAT ALLOWS THEM TO FEEL THEY'RE AGING GRACEFULLY SHE ADDS THESE DAYS THE TRICK TO A HAIR COLOR'S SUCCESS IS HOW LITTLE IT DOES SAYS JOE CAMPINELL SENIOR VICE PRESIDENT AND GENERAL MANAGER OF L'OREAL IT MAY NOT NECESSARILY DO AS MUCH AS YOU WANT IT TO BUT IT NEVER DOES MORE THAN YOU WANT IT TO HE SAYS AND THAT HE BELIEVES HAS ENCOURAGED MORE TIMID CONSUMERS TO TRY THE PRODUCT THE POPULARITY OF CASTING HELPED BOOST L'OREAL'S SALES OF HAIRCOLORING PRODUCTS BY 218 TO 2525 MILLION LAST YEAR POSTING HIGHER GROWTH THAN BRISTOLMYERS SQUIBB CO'S CLAIROL THE MARKET LEADER ACCORDING TO INFORMATION RESOURCES MADELINE SOLANO 25 SAYS HER HEART BEATS FASTER EVERY TIME SHE GETS READY TO USE THE PERMANENT ASH BROWN THAT SHE SAYS MATCHES HER COMPLEXION I NEVER LEAVE THE STUFF ON FOR MORE THAN 10 MINUTES SHE SAYS EVEN THOUGH THE DIRECTIONS RECOMMEND 25 MANUFACTURERS SAY EVEN OLDSTYLE PERMANENT COLOR TODAY IS LESS MESSY AND SMELLY AND MORE NATURAL LOOKING THAN IT USED TO BE SUBTLE RESULTS THEY SAY CAN BE ACHIEVED BY CHOOSING THE PERFECT MATCH FROM AMONG AS MANY AS 40 SHADES WITH SUCH NAMES AS NATURAL HONEYCOMB OR EXTRA LIGHT BEIGE BLONDE IN A PRODUCT LINE STILL APPLICATION CAN BE DAUNTING AFTER MIXING LIQUIDS FROM TWO DIFFERENT BOTTLES THE FORMULA IS APPLIED TO DRY HAIR AND LATHERED LIKE SHAMPOO INDUSTRY OBSERVERS SAY THE GENERAL INTEREST IN COLORING HAIR IS HELPING SALONS TOO BUT SOME INDIVIDUAL SALON OWNERS DISAGREE JOSEPH CIONE WHO OWNS A CHAIN OF HAIR SALONS IN NEW YORK SAYS HE SUSPECTS SOME FORMER CLIENTS NOW HEAD STRAIGHT FOR THE DRUGSTORE AT ABOUT 5 A BOTTLE ATHOME KITS ARE MUCH CHEAPER THAN A SALON TREATMENT WHICH CAN COST UP TO 125 AFTER NOTICING A 10 DROP IN THE NUMBER OF CUSTOMERS REQUESTING HAIR COLORING MR CIONE SAYS HE DECIDED TO MAIL HIS CUSTOMERS COUPONS DISCOUNTING BY 10 HIS 55 HAIRCOLORING FEE TO BE SAFE MARKETERS AREN'T JUST COUNTING ON BABY BOOMERS FOR GROWTH ANOTHER PROMISING TARGET FOR HAIRCOLOR MANUFACTURERS IS YOUNGER WOMEN LIKE MS SOLANO IF CONSUMERS START USING HAIR COLORING BEFORE THEY GO GRAY THEY'LL REALIZE THAT USING A HAIR COLORING ISN'T SUCH A BIG DEAL SAYS L'OREAL'S MR CAMPINELL CLAIROL WHICH UNTIL NOW HAS FOCUSED MAINLY ON PRODUCTS THAT CONCEAL GRAY HOPES TO CAPTURE WOMEN IN THEIR TEENS AND 20S WITH GLINTS WHICH IT LAUNCHED LAST SUMMER THE COLORING PRODUCT WASHES OUT AFTER SIX TO EIGHT SHAMPOOS IT'S LIKE USING HAIR COLOR ALMOST AS A COSMETIC SAYS RUSTY PIERCE CLAIROL'S VICE PRESIDENT OF CONSUMER MARKETING THE FASHION WORLD IS EMBRACING THE ARTIFICIAL TOO CLAIROL NOTES THAT MANY DESIGNERS AT A RECENT FASHION SHOW IN NEW YORK COLORED THEIR MODELS' HAIR BLOND IS THE COLOR OF THE MOMENT BUT LINDA WELLS EDITOR OF ALLURE FASHION MAGAZINE PREDICTS A REVIVAL OF FROSTED HAIR A PARTICULARLY ARTIFICIAL STYLE POPULAR IN THE 1970S FEATURING ALTERNATING STRANDS OF DARK AND LIGHT HAIR 9402030128 940203 BUSINESS BRIEF DURIRON CO PROFIT FOR FOURTH QUARTER IS SEEN EXCEEDING ESTIMATES DURIRON CO CITING STRONG SHIPMENTS AND EARNINGS SAID IT EXPECTS TO SIGNIFICANTLY EXCEED ANALYSTS' PROFIT ESTIMATES FOR THE FOURTH QUARTER ANALYSTS' ESTIMATES FOR THE QUARTER RANGED FROM 35 CENTS TO 40 CENTS WITH A CONSENSUS OF 37 CENTS THE DAYTON OHIO COMPANY SAID ITS MANUFACTURING AND SHIPPING VOLUMES FROM ITS NORTH AMERICAN OPERATIONS COMBINED WITH EFFECTIVE CONTROL OF COSTS AND ASSETS ENABLED DURIRON TO CAPITALIZE ON THE INVESTMENTS MADE IN MANUFACTURING THE COMPANY PLANS TO RELEASE ITS 1993 RESULTS ON FEB 10 FOR THE YEARAGO FOURTH QUARTER THE COMPANY EARNED 526000 OR FOUR CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF 38 MILLION OR 30 CENTS A SHARE DURIRON MAKES CORROSIVERESISTANT EQUIPMENT PUMPS VALVES AND OTHER FLUIDHANDLING EQUIPMENT 9402030127 940203 WHO'S NEWS RALLY'S TAPS LANEY TO TAKE TOP POSTS OF BURT SUGARMAN BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL LOUISVILLE KY D RANDY LANEY A FORMER WALMART STORES INC TREASURER WAS PROMOTED TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RALLY'S HAMBURGERS INC SUCCEEDING BURT SUGARMAN MR SUGARMAN THE TROUBLED FASTFOOD CHAIN'S BIGGEST SHAREHOLDER SAID HE CHOSE TO STEP DOWN FROM THE TOP JOBS AT RALLY'S BUT REMAINS A DIRECTOR WHEN I SAW THE PROFESSIONAL MANAGERIAL SKILLS RANDY HAS I FELT HE WAS MORE SUITED TO DO THAT THAN I WAS MR SUGARMAN SAID HE SAID HE CONSIDERED STAYING ON AS VICE CHAIRMAN BUT IT WOULD LOOK LIKE I WASN'T LETTING GO THAT'S NOT THE CASE HE IS GOING TO RUN THE COMPANY PERIOD ANALYSTS SAID MR SUGARMAN'S FASTGROWTH APPROACH HAD LARGELY FAILED HE OPENED STORES TOO FAST AND DIDN'T FOCUS ENOUGH ATTENTION ON SITE SELECTION AND EVEN MORE IMPORTANTLY HIRING TRAINING AND PROVIDING INCENTIVES TO UNITLEVEL MANAGEMENT SAID BRYAN ELLIOTT AN ANALYST WITH ROBINSONHUMPHREY CO ATLANTA MR ELLIOTT NOTED THAT IN 1993 RALLY'S STOCK WENT FROM A HIGH OF 24125 TO A LOW OF 8 LATE LAST YEAR IN RECENT WEEKS IT HAS RALLIED TRADING AROUND 11 TO 12 IN NASDAQ STOCK MARKET TRADING YESTERDAY RALLY'S WAS UNCHANGED AT 11875 A SHARE MR LANEY 38 YEARS OLD WAS RECRUITED FROM WALMART IN SEPTEMBER TO TURN AROUND RALLY'S WHOSE SAMESTORE SALES AND INCOME HAD BEEN SLIPPING MR LANEY WHO JOINED RALLY'S AS SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IS CONSIDERED BY ANALYSTS AS SOFTSPOKEN AND BRAINY WITH EXTENSIVE RETAIL EXPERIENCE MR SUGARMAN BY CONTRAST IS A PROMOTER A BIGPICTURE RATHER THAN DETAILORIENTED EXECUTIVE SAID MR ELLIOTT THE ANALYST THE 54YEAROLD MR SUGARMAN IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GIANT GROUP LTD HARLEYVILLE SC WHICH HAS CEMENT AS WELL AS RECYCLING AND RESOURCERECOVERY BUSINESSES MR SUGARMAN A ONETIME MOVIE PRODUCER IS BASED IN BEVERLY HILLS CALIF AND MARRIED TO MARY HART COHOST OF THE SYNDICATED ENTERTAINMENT TONIGHT TELEVISION PROGRAM MR SUGARMAN MS HART AND GIANT GROUP OWN MORE THAN 41 OF RALLY'S COMMON SHARES OUTSTANDING SAID BRUCE LEY EXECUTIVE VICE PRESIDENT OF MARKETING THE PROBLEMS AT RALLY'S HAVE FORCED GIANT GROUP TO TAKE NONCASH CHARGES OF 12 MILLION ACCORDING TO A REPORT BY STEPHEN D WEINRESS OF INVESTMENT BANKER LH FRIEND WEINRESS & FRANKSON INC IRVINE CALIF MR SUGARMAN SAID HE OWNS ABOUT 40 OF GIANT GROUP'S STOCK RALLY'S HAS BEEN HURT BY THE BURGERCHAIN PRICE WARS POORLY CHOSEN LOCATIONS AND INATTENTION TO SUCH DETAILS AS CLEANLINESS A PROBLEM COMPOUNDED BY NEARLY DOUBLING THE NUMBER OF RESTAURANTS TO 521 SINCE 1990 ACCORDING TO ANALYSTS UNLIKE TRADITIONAL BURGER JOINTS RALLY'S CATERS MAINLY TO TAKEOUT CUSTOMERS WITH TWO DRIVETHROUGH WINDOWS AND PATIO SEATING BUT NO INDOOR SEATING THE MENU IS LIMITED FEATURING HAMBURGERS COATED FRENCH FRIES AND SOFT DRINKS 9402030126 940203 DINGELL ASKS PROBE OF TWO US BANKS TIED TO INDIA SCANDAL WASHINGTON REP JOHN DINGELL ASKED THE FEDERAL RESERVE BOARD AND THE SECURITIES AND EXCHANGE COMMISSION TO INVESTIGATE WHETHER CITIBANK AND BANK OF AMERICA BROKE ANY US LAWS IN THEIR ROLES IN A 14 BILLION SECURITIES SCANDAL IN INDIA MR DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE ASKED FOR REPORTS ON THE FINDINGS FROM FED CHAIRMAN ALAN GREENSPAN AND SEC CHAIRMAN ARTHUR LEVITT THE MICHIGAN DEMOCRAT ALSO ASKED WHETHER THE FED AND SEC CURRENTLY RECEIVE SUFFICIENT INFORMATION ON THE FOREIGN SECURITIES ACTIVITIES OF US BANKS AND COOPERATION FROM FOREIGN REGULATORS TO CONDUCT ADEQUATE SURVEILLANCE AND ENFORCEMENT CITIBANK AND BANK OF AMERICA WERE NAMED LAST DECEMBER IN A REPORT BY AN INDIAN PARLIAMENTARY COMMITTEE THAT INVESTIGATED THE 1992 SCANDAL OFFICIALS WITH THE BANKS' PARENT COMPANIES CITICORP AND BANKAMERICA CORP HAVE DENIED ANY WRONGDOING THE REPORT ALLEGED THAT BANK OF AMERICA AND CITIBANK ALONG WITH STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED PLC AND ANZ GRINDLAYS A UNIT OF ANZ BANKING GROUP WERE DEEPLY INVOLVED IN IRREGULARITIES IN SECURITIES TRANSACTIONS AND THAT THEY ALL FAILED TO FOLLOW PROCEDURES OF INTERNAL CONTROL THE SCANDAL REVOLVED AROUND THE DIVERSION OF BANK FUNDS INTO THE STOCK MARKET USING FORGED OR FICTITIOUS RECEIPTS FOR SECURITIES THE INJECTION OF MONEY SET THE MARKET ON AN UNPRECEDENTED BULL RUN BEFORE THE MARKET CRASHED WHEN THE SCANDAL WAS EXPOSED 9402030125 940203 REGULATORS WANT INVESTORS TO GET DATA EARLIER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STATE SECURITIES REGULATORS ARE EXAMINING WAYS OF PRODDING BROKERAGE FIRMS TO TELL INVESTORS MORE ABOUT INVESTMENTS BEFORE INVESTORS MAKE THEM AMONG THE PROPOSALS TO BE CONSIDERED BY A NEWLY FORMED DISCLOSUREREFORM COMMITTEE OF STATE REGULATORS IS ONE REQUIRING FIRMS TO PROVIDE PROSPECTUSES ABOUT PARTNERSHIPS AND OTHER INVESTMENTS AT THE TIME INVESTORS BUY THEM NOT SEVERAL DAYS LATER WITH THEIR TRADE CONFIRMATION SLIPS THERE'S A HYPOCRISY IN DELIVERING THE DISCLOSURE DOCUMENT WITH THE CONFIRM SAYS NANCY SMITH NEW MEXICO'S SECURITIES DIRECTOR WHO IS HEADING UP THE STATE REGULATORS' COMMITTEE WHEN RECEIVING A PROSPECTUS AFTER THE SALE SHE SAYS WHAT YOU KNOW IS WHETHER YOU MADE A GOOD DEAL OR WHETHER OR NOT YOU BOUGHT A LAWSUIT INDEED CONSIDERING HOW LATE INVESTORS SOMETIMES RECEIVE A PROSPECTUS SOME HAVE SUGGESTED THAT THE DISCLOSURE DOCUMENT INSTEAD BE CALLED A RETROSPECTUS THE REGULATORS' MOVE TO BUTTRESS BROKERAGE DISCLOSURE STEMS FROM THE SCANDAL AT PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA WHICH HAS BEEN ACCUSED OF WIDESPREAD FRAUD IN SELLING 815 BILLION OF PARTNERSHIPS AMONG THE PROBLEMS RAISED IN THE PRUDENTIAL MESS WAS THAT BROKERS ROUTINELY SOLD RISKY PARTNERSHIPS BASED SOLELY ON ROSY SALES SCRIPTS AND DIDN'T RELY ON THE PROSPECTUS A STATEREGULATORY SURVEY OF 22000 PRUDENTIAL PARTNERSHIP INVESTORS LAST YEAR SHOWED THAT JUST 15 SAID THEY RECEIVED THE PROSPECTUS BEFORE MAKING A DECISION TO BUY THE PARTNERSHIPS MOREOVER FORMER PRUDENTIAL BROKERS HAVE TESTIFIED IN VARIOUS COURT CASES THEY WERE TOLD NOT TO RELY ON THE PROSPECTUS FOR FEAR INVESTORS WOULD SHUN THE PARTNERSHIPS RETAIL CUSTOMERS WOULD NOT READ OR UNDERSTAND PROSPECTUSES AND WOULD BE SO CONFUSED THAT THEY WOULD NOT PURCHASE PARTNERSHIPS ACCORDING TO AFFIDAVITS FILED IN VARIOUS COURT CASES FROM ABOUT THREE DOZEN FORMER PRUDENTIAL BROKERS THE REGULATORS' DISCLOSURE COMMITTEE FORMED LAST MONTH ISN'T EXPECTED TO PROPOSE RECOMMENDATIONS UNTIL LATE THIS YEAR AMONG THE OPTIONS FOR THE COMMITTEE IS TO CHANGE STATES' SECURITIES REGULATIONS OR THE GUIDELINES OF THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION A STATE REGULATORS' UMBRELLA ORGANIZATION SPONSORING THE COMMITTEE THE DISCLOSURE GROUP ALSO COULD ADVOCATE FEDERAL LEGISLATION INDEED COMMITTEE MEMBERS SAY THEY ARE WORKING CLOSELY WITH THE SECURITIES AND EXCHANGE COMMISSION ON THE MATTER UNDER FEDERAL SECURITIES LAW INVESTORS TECHNICALLY HAVE ONE YEAR TO TRY TO RESCIND A TRADE IF THEY DISCOVER THAT THE DATA IN THE PROSPECTUS CONFLICT WITH WHAT THEIR BROKER TOLD THEM BUT MANY INVESTORS DON'T BOTHER TO READ PROSPECTUSES WHICH TYPICALLY RUN 50 TO 300 PAGES AND ARE STEEPED IN TECHNICAL LANGUAGE SO DENSE THAT SOME SECURITIES LAWYERS CAN'T EASILY UNDERSTAND THEM LAST YEAR'S STATE SURVEY SHOWED THAT JUST 6 OF PRUDENTIAL PARTNERSHIP INVESTORS SURVEYED CAREFULLY READ THE PROSPECTUS AMONG OTHER POTENTIAL PROPOSALS BY THE DISCLOSURE COMMITTEE IS SIMPLIFYING PROSPECTUSES TO MAKE THEM MORE READABLE THE COMMITTEE ALSO IS LOOKING INTO REQUIRING THAT BROKERAGE FIRMS INCLUDE THE NATURE OF THE INVESTMENT AND ALL FEES ON TRADECONFIRMATION STATEMENTS ONE POSSIBILITY BEING DISCUSSED FOR INSTANCE IS LANGUAGE ON THE CONFIRMATION STATEMENT THAT SAYS THE INVESTMENT HAS BEEN APPROVED FOR EITHER CONSERVATIVE OR SPECULATIVE INVESTORS THIS WOULD BE A FLAG FOR INVESTORS TO SAY WAIT A MINUTE MY BROKER SAID THIS WAS SAFE AND THIS CONFIRM SAYS IT'S SPECULATIVE' SAYS THOMAS R GRADY A NAPLES FLA PLAINTIFFS' LAWYER WHO WAS ASKED TO SERVE AS AN ADVISER TO THE STATE COMMITTEE ANOTHER RECOMMENDATION THE COMMITTEE IS LIKELY TO CONSIDER IS REQUIRING THAT FIRMS INCLUDE ALL FEES ON THE CONFIRMATION SLIPS THERE'S NEVER A SPOT WHERE YOU ACTUALLY SEE WHAT PROPORTION OF A DOLLAR INVESTED IS GOING TOTALLY TO FEES SAYS MS SMITH THE COMMITTEE CHIEF THE PRACTICE OF BROKERAGE FIRMS PROVIDING PROSPECTUSES AFTER THE SALE HAS EVOLVED DURING THE PAST SEVERAL YEARS IN MOST SALES MADE PRIOR TO ABOUT '86 OR '87 PROSPECTUSES WERE DELIVERED WITH THE SALES PITCH SAYS CHARLES BENNETT DIRECTOR OF CORPORATE FINANCING AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SINCE THEN HE SAYS A LOT OF THE WALL STREET FIRMS STARTED LOOKING FOR WAYS TO CONDUCT BUSINESS OVER THE PHONE IN SELLING PARTNERSHIPS 9402030124 940203 CANADIAN WHEAT STOCKS INCREASE OTTAWA CANADIAN WHEAT STOCKS TOTALED 102 BILLION BUSHELS AT DEC 31 A 2 INCREASE FROM ONE BILLION BUSHELS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE STOCKS ON FARMS AND AT ELEVATORS AND OTHER COMMERCIAL LOCATIONS INCLUDED 1371 MILLION BUSHELS OF DURUM WHEAT A 13 DECLINE FROM 1389 MILLION A YEAR EARLIER DURUM WHEAT IS USED TO MAKE PASTA PRODUCTS RAPESEED STOCKS AT DEC 31 TOTALED 1508 MILLION BUSHELS A 28 INCREASE FROM 1181 MILLION A YEAR EARLIER RAPESEED ALSO KNOWN AS CANOLA IS CANADA'S BIGGEST OIL SEED CROP 9402030123 940203 TECHNOLOGY & HEALTH COMPUSA CUTS COSTS POSTS LOSS STOCK JUMPS 13 BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FASTGROWING COMPUSA INC ANNOUNCED A SERIES OF MOVES TO GET A HANDLE ON ITS EXPENSES RESULTING IN A LOSS FOR THE FISCAL SECOND QUARTER AND A 13 JUMP IN THE COMPANY'S STOCK PRICE THE COMPUTER SUPERSTORE CHAIN'S STEPS INCLUDE REORGANIZING AND CONSOLIDATING ITS MANAGEMENT STRUCTURE RESULTING IN THE DISMISSAL OF AN UNSPECIFIED NUMBER OF EXECUTIVES IN AN INTERVIEW COMPUSA'S CHIEF EXECUTIVE OFFICER JAMES F HALPIN SAID THE JOB CUTS RANGE FROM THE STORE LEVEL TO A VERY SENIOR RANK NEVERTHELESS COMPUSA SAID IT PLANS TO CONTINUE ITS RAPID EXPANSION AND PREDICTED A QUICK RETURN TO WHAT IT CALLED ACCEPTABLE PROFITABILITY IN THE CURRENT QUARTER THE MOVES SENT COMPUSA STOCK SURGING 2375 TO 20125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FOR THE QUARTER ENDED DEC 25 THE COMPANY POSTED A LOSS OF 55 MILLION OR 30 CENTS A SHARE AFTER A 99 MILLION PRETAX RESTRUCTURING CHARGE A YEAR EARLIER COMPUSA EARNED 3 MILLION OR 16 CENTS A SHARE REVENUE SURGED 65 IN THE LATEST QUARTER TO 5369 MILLION FROM 3245 MILLION A YEAR EARLIER THE MOVES UNVEILED YESTERDAY MARK THE FIRST MAJOR STEPS BY MR HALPIN WHO BECAME CEO IN DECEMBER SUCCEEDING NATHAN P MORTON WHO RESIGNED AS CHAIRMAN AND CEO AMID DISSATISFACTION WITH THE COMPANY'S PROFITABILITY MR HALPIN IS OBVIOUSLY TAKING A SCALPEL TO THE COMPANY'S EXPENSES SAID RETAILING CONSULTANT DAVID GOLDSTEIN OF CHANNEL MARKETING CORP HE'S A BOTTOMLINEDRIVEN MANAGER THE RETAILER DECIDED TO TRANSFER ITS MANUFACTURING OPERATION WHICH MAKES THE COMPANY'S PRIVATELABEL COMPUDYNE BRAND OF PERSONAL COMPUTERS TO ACER AMERICA OF SAN JOSE CALIF A UNIT OF TAIWAN'S ACER GROUP IT DIDN'T GIVE DETAILS ABOUT THE MOVE THE COMPUDYNE BRAND ACCOUNTS FOR A LITTLE LESS THAN 10 OF COMPUSA'S SALES MR HALPIN SAID THE COMPANY ALSO DECIDED TO CENTRALIZE PART OF ITS INVENTORY MANAGEMENT AND TO SUSPEND FOR 18 TO 24 MONTHS ITS SEARCH FOR SITES TO OPEN STORES IN FOREIGN COUNTRIES COMPUSA WHICH HAS 70 SUPERSTORES SAID IT STILL PLANS TO ADD 12 STORES DURING THE REST OF THE FISCAL YEAR FOR A TOTAL OF 30 NEW OUTLETS FOR THE YEAR IN FISCAL 1995 IT PLANS TO OPEN ANOTHER 30 STORES MR HALPIN EMPHASIZED THAT THE COMPANY ISN'T CLOSING ANY STORES OUR MODEL WORKS OUR CONCEPT WORKS HE SAID WE LET EXPENSES GET AHEAD OF OURSELVES JAMES M MEYER AN ANALYST AT JANNEY MONTGOMERY SCOTT INC IN PHILADELPHIA SAID COMPUSA'S COSTCUTTING STEPS ARE HOPEFUL SIGNS BUT HE ADDED THEY STILL HAVE A WAYS TO GO 9402030122 940203 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN UNION'S HIGHEST COURT IN A VICTORY FOR CLINIQUE COSMETICS SAID THE PRODUCTS CAN BE SOLD IN GERMANY WITHOUT ALTERING THE BRAND NAME ESTEE LAUDER COS HAS LONG SOLD THE LINE AS LINIQUE IN GERMANY WHICH CLAIMED THE CLINIQUE NAME COULD DECEIVE CONSUMERS INTO BELIEVING THE PRODUCTS HAVE MEDICINAL QUALITIES WHEN THE COMPANY MOVED TO USE THE CORRECT NAME TO REDUCE MARKETING AND ADVERTISING COSTS A TRADE GROUP FILED A CHALLENGE BUT THE EU COURT SAID THE PRODUCTS ARE SOLD ONLY IN GERMAN PERFUMERIES AND DEPARTMENT STORES NOT IN PHARMACIES AND EVERYWHERE ELSE UNDER THE CLINIQUE NAME WITHOUT HURTING CONSUMERS UNDER GERMAN CASE LAW ON CONSUMER PROTECTION DECEPTION IS ASSUMED IF ONLY 5 TO 10 OF CONSUMERS WOULD BE MISLED ABOUT A PRODUCT'S HEALTH IMPLICATIONS THE EU HAS LONG ARGUED WITH GERMANY ABOUT WHAT TYPE OF CONSUMER SHOULD BE CONSIDERED IN EVALUATING PRODUCT CLAIMS OR LABELS I HAVE THE IMPRESSION THAT GERMAN LAWS ARE BASED ON THE PREMISE THAT BEING A CONSUMER IS A FORM OF MENTAL RETARDATION AN EU OFFICIAL SAID THE FRENCH GOVERNMENT WILL ISSUE HIGHTECHNOLOGY IDENTITY CARDS TO REPLACE CITIZENS' PAPER DOCUMENTS THE PLASTICCOVERED BLUE CARDS ARE ALREADY IN USE ON A TRIAL BASIS IN A FEW REGIONS AND WILL BE PHASED IN NATIONWIDE BY THE END OF 1995 THEY WILL BE LINKED TO A CENTRAL COMPUTER SYSTEM IN A BID TO COMBAT FORGERIES IN 1992 ALONE FRANCE FOUND 10000 FAKES AMONG THE TOTAL OF 3 MILLION DOCUMENTS ISSUED BUT NO FORGERIES WERE DETECTED AMONG ABOUT 500000 TEST CARDS ISSUED SINCE 1988 WEST OF PARIS FRANCE ALSO IS CONSIDERING REPLACING FOREIGNERS' RESIDENCE PERMITS WITH A COMPUTERIZED STAMP ATTACHED TO PASSPORTS A CHURCH OF ENGLAND BISHOP DENIED LONGSTANDING REPORTS THAT HE DIDN'T BELIEVE IN HELL THE VIRGIN BIRTH OR RESURRECTION OF CHRIST WHICH HAVE STIRRED WIDESPREAD ANGER BRITAIN SAID THE BISHOP OF DURHAM THE RIGHT REV DAVID JENKINS 69 WHO WAS THE SUBJECT OF A WALL STREET JOURNAL ARTICLE IN DECEMBER WILL RETIRE IN JULY AND BE SUCCEEDED IN THE CHURCH'S FOURTH MOST SENIOR POST BY THE BISHOP OF ROCHESTER MICHAEL TURNBULL AS THE CHURCH REPRESENTS THE STATE RELIGION THE GOVERNMENT APPOINTS SENIOR CLERGY DR JENKINS CONTENDED HIS VIEWS ON BLASPHEMY HAD BEEN TAKEN OUT OF CONTEXT AND DISTORTED GLOBAL TEMPERATURES LAST YEAR WERE HALF A DEGREE WARMER THAN THE AVERAGE FOR THE PREVIOUS FOUR DECADES BRITAIN'S METEOROLOGICAL OFFICE SAID THE AGENCY WHICH ANALYZES GOVERNMENTS' TEMPERATURE REPORTS TERMED THE RISE INSIGNIFICANT AND ATTRIBUTED IT TO USUAL CLIMATIC VARIABILITIES RATHER THAN GLOBAL WARMING A POTENTIAL CONSEQUENCE OF BURNING FOSSIL FUELS AND SENDING OTHER CHEMICALS INTO THE AIR KUWAIT RATIFIED A UNITED NATIONS CONVENTION ON COMBATING DISCRIMINATION AGAINST WOMEN BUT THE PERSIAN GULF STATE SAID IT MADE THE ENDORSEMENT WITH RESERVATIONS ABOUT PROVISIONS IN THE 1979 PACT GUARANTEEING WOMEN THE RIGHT TO VOTE AND EQUAL RIGHTS IN CHILDCUSTODY DISPUTES THE CLAUSES THE EMIRATE RATIFIED STIPULATE EQUAL PAY EQUAL RIGHTS IN CHOICE OF WORK AND IN JOB PROMOTIONS PROTECTION AGAINST BIAS ON MATERNITY THE RIGHT TO CHOOSE A SPOUSE AND ENCOURAGEMENT OF MIXED EDUCATION FOREIGN INVESTMENT IN COLOMBIA'S NONOIL SECTORS LAST YEAR INCREASED 25 TO 4365 MILLION FROM A YEAR EARLIER US COMPANIES LED THE LIST INVESTING 153 MILLION OR 35 OF THE TOTAL FOLLOWED BY FIRMS FROM VENEZUELA AT 658 MILLION AND PANAMA AT 49 MILLION SAID INVEST IN COLOMBIA CORP A JOINT PRIVATEPUBLIC ORGANIZATION THE MOST FOREIGN CAPITAL WENT TO THE CHEMICAL PLASTIC AND RUBBER SECTORS RUSSIANS' AVERAGE LIFE EXPECTANCY HAS DROPPED TO 59 FROM 62 YEARS FOR MEN AND TO 732 FROM 738 YEARS FOR WOMEN THE GOVERNMENT SAID QUANTIFYING THE TOLL ON PUBLIC HEALTH FROM POVERTY VIOLENCE DISEASE AND STRESS BY COMPARISON US LONGEVITY IS 72 YEARS FOR MEN AND 79 FOR WOMEN THE RUSSIAN MEN'S LONGEVITY LOSS WAS BELIEVED TO BE THE BIGGEST FOR ANY YEAR SINCE WORLD WAR II AND UNPRECEDENTED AMONG DEVELOPED NATIONS THE PUBLIC HEALTH DECLINE BEGAN IN THE LATE 1980S A MOSCOW PHYSICIAN SAID CITING VARIED REASONS INCLUDING CURRENT SOCIOECONOMIC DIFFICULTIES CAUSED BY THE FORMER SOVIET UNION'S ENVIRONMENTAL ABUSES AND RUSSIA'S AILING SWITCH TO A MARKET ECONOMY THE PRELIMINARY DATA ALSO SHOWED THAT RUSSIA'S 1993 BIRTH RATE FELL TO 92 FOR EVERY 1000 PEOPLE FROM 107 IN 1992 BIRTHS DECLINED TO 14 MILLION FROM 16 MILLION LEGAL ABORTIONS TOTALED 35 MILLION THE DEATH RATE CLIMBED TO 146 FROM 122 PER 1000 DEATHS INCREASED TO 22 MILLION FROM 18 MILLION THE INFANT MORTALITY RATE CONTINUING A TREND THAT BEGAN IN 1990 ROSE TO 193 FROM 178 PER 1000 ABOUT 100000 WORKERS AT 384 COMPANIES IN GERMANY'S ENGINEERING SECTOR WALKED OFF THEIR JOBS IN THE THIRD DAY OF ROLLING STRIKES BY THE METALWORKERS UNION TO PROTEST A PROPOSED WAGE FREEZE BAMBINELLO A 15THCENTURY ARTWORK REPUTED TO HAVE MIRACULOUS HEALING POWERS WAS STOLEN FROM A ROME CHURCH PARENTS TRADITIONALLY TAKE NEWBORN OR SICK CHILDREN TO THE STATUE DEPICTING THE INFANT JESUS ASK FOR A BLESSING AND LEAVE JEWELS WHICH ARE SOLD TO PROVIDE MONEY FOR THE POOR 9402030121 940203 ECONOMY LEADING INDICATORS INDEX CLIMBED 07 IN DECEMBER HOME SALES JOB ADS ROSE BY DAVID MULHOLLAND AND JACQUELINE SIMMONS STAFF REPORTERS OF THE WALL STREET JOURNAL THE GOVERNMENT'S BAROMETER OF FUTURE ECONOMIC ACTIVITY ROSE IN DECEMBER ALONG WITH SALES OF NEW HOMES AND HELPWANTED ADS IN NEWSPAPERS GIVING FURTHER EVIDENCE THAT THE ECONOMY IS GAINING MOMENTUM THE INDEX IS DESIGNED TO FORECAST FUTURE ECONOMIC HEALTH EIGHT OF THE 11 INDICATORS THAT MAKE UP THE INDEX IMPROVED THE MOST ROBUST INDICATORS WERE CONSUMER EXPECTATIONS MATERIALS PRICES AND INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS CAPITAL EQUIPMENT UNFILLED ORDERS FOR DURABLE GOODS AND THE MONEY SUPPLY WERE DOWN VERY SLIGHTLY OR UNCHANGED ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO SAID WE'RE IN A FULLFLEDGED CYCLICAL EXPANSION BEFORE WE HAD ONE OR MORE OF THE CYLINDERS OF THE ECONOMY NOT WORKING NOW THEY ARE ALL RUNNING SEPARATELY SALES OF NEW HOMES SHOT UP 114 IN DECEMBER TO AN ANNUAL RATE OF 862000 THE HIGHEST IN SEVEN YEARS ACCORDING TO A REPORT BY THE COMMERCE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOMES SALES FIGURES ARE VOLATILE AN INCREASE ONE MONTH IS OFTEN FOLLOWED BY A DECLINE THE NUMBERS ALSO HAVE LARGE MARGINS OF ERROR THE BIG INCREASE SURPRISED SOME ANALYSTS COMING ON THE HEELS OF A REVISED 62 INCREASE IN NOVEMBER MUCH OF THE DECEMBER GROWTH WAS DUE TO A JUMP OF BETWEEN 51 AND 75 IN THE MIDWEST AND A MODEST INCREASE IN THE SOUTH DESPITE THE WIDE MARGINS OF ERROR IT WAS CLEAR THAT THE HOUSING MARKET EXPERIENCED STRONG GROWTH THE DECEMBER 1993 FIGURE WAS 302 HIGHER THAN THAT OF DECEMBER 1992 THE NUMBER OF HOUSES FOR SALE HAS INCREASED STEADILY OVER THE PAST YEAR BUT SALES HAVE OUTPACED SUPPLY THERE WERE 669000 UNITS SOLD IN 1993 AN INCREASE OF 97 FROM THE PREVIOUS YEAR SEPARATELY THE CONFERENCE BOARD SAID ITS INDEX OF HELPWANTED ADVERTISING ROSE TO 110 IN DECEMBER FROM 107 IN NOVEMBER AND IS NOW ABOUT 16 HIGHER THAN A YEAR EARLIER AN INDICATION THAT BUSINESSES ARE BEGINNING TO HIRE AGAIN EMPLOYERS SEEM TO FEEL THAT SUSTAINED IMPROVEMENT IN THE GENERAL ECONOMIC ENVIRONMENT ALLOWS THEM ROOM TO HIRE NEW STAFF RATHER THAN SIMPLY TRY TO MEET INCREASED DEMAND BY SCHEDULING MORE OVERTIME HOURS SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN IN THE PAST THREE MONTHS HELPWANTED ADVERTISING INCREASED IN ALL REGIONS EXCEPT FOR A 21 DECLINE IN THE AREA AROUND BIRMINGHAM ALA AND MEMPHIS TENN SHARP GAINS WERE REPORTED IN THE WEST AND THE NORTHEAST ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 07 RISE IN THE INDEX FOR DECEMBER AND A 05 RISE FOR NOVEMBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1987=100 FOR NOVEMBER AND THE CHANGE FROM OCTOBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 115 UNCHANGED FROM 115 IN THE PREVIOUS MONTH 9402030120 940203 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY THE COMPANY'S IBM PERSONAL COMPUTER CO UNIT NAMED MARK LOUGHRIDGE AS ASSISTANT GENERAL MANAGER FOR FINANCE AND PLANNING MR LOUGHRIDGE 40 YEARS OLD MOST RECENTLY SERVED AS ASSISTANT CONTROLLER FOR CORPORATE FINANCE AT IBM HE SUCCEEDS EDWARD ROGERS 56 CHIEF FINANCIAL OFFICER OF IBM PC WHO WILL RETIRE MR ROGERS WHO HAS SPENT 31 YEARS AT IBM AND IS CREDITED WITH HELPING MANAGE IBM PC'S RECENT TURNAROUND SAYS HE WILL SEEK ANOTHER JOB 9402030119 940203 WARNER INSURANCE SERVICES FAIR LAWN NJ WARNER INSURANCE SERVICES INC SAID IT EXPECTS TO SERVICE AS MUCH AS 15 MILLION OF ADDITIONAL PREMIUMS THIS YEAR THE INCREASE IS DUE TO THE ADDITION OF LIBERTY MUTUAL INSURANCE CO OF BOSTON TO THE GROUP OF INSURANCE COMPANIES WHOSE NEW JERSEY AUTOMOBILE ASSIGNEDRISK INSURANCE OBLIGATIONS ARE HANDLED BY WARNER AS THE SERVICING CARRIER AND CLARENDON NATIONAL INSURANCE CO OF NEW YORK AS THE INSURER IN 1993 WARNER SERVICED ABOUT 140 MILLION IN TOTAL PREMIUMS A SPOKESWOMAN SAID 9402030118 940203 FINANCING BUSINESS POCO PETROLEUMS LTD POCO PETROLEUMS LTD CALGARY ALBERTA SAID IT EXPECTS TO RAISE 989 MILLION CANADIAN DOLLARS US744 MILLION AFTER COMMISSIONS ON THE SALE OF NEW SHARES TO AN UNDERWRITING SYNDICATE LED BY BURNS FRY LTD TORONTO THE OIL AND GAS PRODUCER SAID IT REACHED AN AGREEMENT WITH THE GROUP TO ISSUE 10 MILLION COMMON SHARES FROM THE TREASURY AT C1030 EACH ON A BOUGHTDEAL BASIS THE TRANSACTION WOULD RAISE THE NUMBER OF POCO SHARES OUTSTANDING TO ABOUT 927 MILLION THE COMPANY SAID IT WILL USE PROCEEDS TO FINANCE OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS AND PROPERTY ACQUISITIONS AND INITIALLY TO REDUCE LONGTERM DEBT IT SAID IT PLANS TO FILE A PRELIMINARY PROSPECTUS TODAY AND EXPECTS THE TRANSACTION TO CLOSE FEB 22 9402030117 940203 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ONE OF THE SEMINAL EVENTS IN THE HISTORY OF THE PERSONAL COMPUTER WAS THE INVENTION OF THE ELECTRONIC SPREADSHEET A TYPE OF SOFTWARE PROGRAM THAT PERMITS PEOPLE TO LINK NUMBERS AND FORMULAS TO EACH OTHER AND THEN ALMOST INSTANTLY CALCULATE HOW A CHANGE IN ANY ONE FIGURE AFFECTS ALL THE OTHERS IT WAS ONLY AFTER THE FIRST POPULAR SPREADSHEET PROGRAM VISICALC APPEARED ON THE OLD APPLE II MACHINE THAT PCS BEGAN TO PENETRATE BUSINESSES IN SIGNIFICANT NUMBERS AND IT WAS THE NEXT GREAT SPREADSHEET PROGRAM LOTUS DEVELOPMENT'S 123 THAT HELPED PROPEL THE FIRST IBM PERSONAL COMPUTER TO SUCCESS IRONICALLY HOWEVER THE SPREADSHEET IS ONE OF THE LEAST UNDERSTOOD AND THEREFORE ONE OF THE MOST UNDERUTILIZED TYPES OF SOFTWARE MICROSOFT STUDIES SHOW THE VAST MAJORITY OF SPREADSHEET USERS DO LITTLE MORE THAN MAKE LISTS OF DATA AND PERFORM ONLY SIMPLE CALCULATIONS ON THOSE LISTS SUCH AS ADDING THEM UP SO IN RECENT YEARS THE TOP SPREADSHEET PUBLISHERS HAVE LAUNCHED SERIOUS EFFORTS TO MAKE THEM EASIER TO USE MICROSOFT'S EXCEL SPREADSHEET FOR WINDOWS AND ITS CHIEF RIVALS LOTUS' 123 FOR WINDOWS AND BORLAND INTERNATIONAL'S QUATTRO PRO FOR WINDOWS EACH HAVE ADDED SHORTCUTS AND AUTOMATION FEATURES THAT THE OTHERS HAVE QUICKLY COPIED NOW IT'S MICROSOFT'S TURN AGAIN IT HAS JUST RELEASED THE LATEST EDITION OF EXCEL VERSION 50 AND IT IS A MIX OF CATCHUP FEATURES DESIGNED TO MATCH INNOVATIONS FROM ITS RIVALS PLUS SOME ORIGINAL EASEOFUSE IMPROVEMENTS THEY UNDOUBTEDLY WILL ADOPT SOON IN PARTICULAR THE SOFTWARE GIANT HAS TRIED TO BUILD INTO EXCEL SOME OF THE INTELLISENSE TECHNOLOGY INTRODUCED EARLIER THIS YEAR IN MICROSOFT WORD WHICH CAUSES THE SOFTWARE TO MAKE INTELLIGENT GUESSES ABOUT WHAT USERS WANT TO DO IN ADDITION EXCEL HAS BEEN REDESIGNED SO THAT ITS MENUS AND COMMANDS ARE ALMOST IDENTICAL TO THOSE IN WORD THE RESULT IS A VERY GOOD SPREADSHEET THAT INCHES AHEAD OF ITS RIVALS BUT IT ISN'T A DAZZLING NEW BENCHMARK IN THE FIELD MOST PEOPLE CAN'T GO WRONG BUYING EXCEL 50 BUT I WAS DISAPPOINTED THAT THE COMPANY DIDN'T DO EVEN MORE TO MAKE THINGS EASIER EXCEL 50 PLACES NOTEBOOKSTYLE TABS AT THE BOTTOM OF EACH SPREADSHEET A FEATURE CREATED BY BORLAND TO BETTER IDENTIFY SPREADSHEETS AND NAVIGATE AMONG THEM FROM LOTUS 123 MICROSOFT HAS BORROWED INCELL EDITING WHICH ALLOWS USERS TO ENTER AND EDIT DATA RIGHT IN ITS LOCATION ON A SPREADSHEET RATHER THAN USING A SEPARATE AREA AT THE TOP OF THE SCREEN AS HAS BEEN TRADITIONAL ANOTHER CATCHUP FEATURE IS THE PIVOT TABLE INTRODUCED IN LOTUS'S IMPROV PROGRAM WHICH PERMITS USERS TO VIEW DATA QUICKLY FROM DIFFERENT PERSPECTIVES FOR INSTANCE YOU CAN VIEW SALES BY PRODUCT LINE FOR EACH QUARTER OR BY QUARTER FOR EACH PRODUCT LINE WITH A COUPLE OF MOUSE CLICKS NEW FEATURES IN EXCEL 50 INCLUDE A TIP WIZARD WHICH WATCHES HOW YOU WORK AND SUGGESTS QUICKER ALTERNATIVES IT'S A POTENTIALLY GOOD TOOL THAT SUPPOSEDLY LEARNS YOUR HABITS OVER TIME AND ADJUSTS TO THEM HOWEVER WHEN YOU START USING THE PROGRAM IT TENDS TO OFFER GRATUITOUS ADVICE A LOT THERE'S ALSO A FUNCTION WIZARD THAT WALKS YOU STEP BY STEP THROUGH THE PROCESS OF ENTERING FORMULAS THAT USE FINANCIAL STATISTICAL AND OTHER FUNCTIONS IT EVEN REMEMBERS THE ONES YOU USE MOST OFTEN ANOTHER NICE ADDITION IS CALLED DRAG AND PLOT IT ALLOWS YOU TO HIGHLIGHT A RANGE OF NUMERICAL DATA THEN DRAG THOSE FIGURES ON TOP OF A CHART USING THE MOUSE WHEN YOU RELEASE THE MOUSE BUTTON EXCEL REDRAWS THE CHART TO INCLUDE THE NEW FIGURES BUT EXCEL'S DESIGNERS HAVE PLACED MOST OF THEIR EMPHASIS ON MANAGING LISTS OF DATA THE TASK MICROSOFT SAYS SPREADSHEET USERS PERFORM MOST OFTEN THERE ARE THREE NEW AUTOMATION FEATURES IN EXCEL 50 TO MAKE HANDLING LISTS OF DATA MUCH SIMPLER THAN IN PRIOR SPREADSHEETS FIRST IS AN AUTO FILTER THAT AUTOMATICALLY FIGURES OUT ROW AND COLUMN HEADINGS IN A DATA TABLE AND LETS YOU VIEW CATEGORIES OF INFORMATION WITH A FEW MOUSE CLICKS AN AUTOMATED SUBTOTALS FEATURE MAKES IT MUCH EASIER TO GET TOTALS ON SUBCATEGORIES OF DATA SUCH AS PAYROLL FOR SPECIFIC DEPARTMENTS AND AUTOMATED SORTING MAKES IT A BREEZE TO ARRANGE DATA IN A WIDE VARIETY OF WAYS STILL I WISH MICROSOFT HAD INCLUDED IN EXCEL MANY MORE WIZARDS AUTOMATED ROUTINES FOR CREATING SPECIFIC KINDS OF DOCUMENTS THESE MIGHT HAVE INCLUDED PROFITANDLOSS STATEMENTS OR PAYROLL OR SALES REPORTS SEVERAL OTHER MICROSOFT PROGRAMS INCLUDE SUCH DOCUMENTCREATION WIZARDS BUT NOT EXCEL IN ADDITION I WONDER WHY THE COMPANY WHICH INTRODUCED THE AUTOSUM BUTTON FOR INSTANTLY TOTING UP A COLUMN OF FIGURES HASN'T FOLLOWED UP WITH ONESTEP METHODS FOR PERFORMING OTHER COMMON CALCULATIONS SUCH AS AN AUTOAVERAGE OR AUTOCOUNT BUTTON MY ONLY OTHER CAUTION ABOUT EXCEL IS THAT IT IS A VERY LARGE PROGRAM IT RUNS BARELY ACCEPTABLY ON COMPUTERS WITH THE MOST COMMON MEMORY CONFIGURATION FOUR MEGABYTES BUT IF YOU USE VERY COMPLEX CALCULATIONS VERY LARGE SPREADSHEETS OR LOTS OF CHARTS THE PROGRAM BECOMES TOO SLOW FOR COMFORT ON SUCH MACHINES HEAVYDUTY USERS SHOULDN'T BUY EXCEL 50 UNLESS THEY HAVE AT LEAST SIX MEGABYTES OF MEMORY WHICH ADDS TO THE COST OF HARDWARE ALSO A TYPICAL INSTALLATION TAKES AROUND 15 MEGABYTES OF HARDDISK SPACE AND IF YOU INSTALL EVERY FEATURE IT CAN TOP 20 MEGABYTES SO YOU'LL NEED A HEFTY HARD DISK EXCEL 50 IS A VERY NICE SPREADSHEET BUT I THINK MICROSOFT COULD HAVE DONE BETTER 9402030116 940203 TECHNOLOGY INTEL SETTLES SEVERAL ISSUES IN PATENT FIGHT WITH CYRIX SANTA CLARA CALIF INTEL CORP SAID IT SETTLED SEVERAL ISSUES IN A COMPLEX AND LONGRUNNING PATENTINFRINGEMENT DISPUTE WITH CYRIX CORP UNDER THE SETTLEMENT INTEL AND CYRIX OF RICHARDSON TEXAS AGREED TO DROP PATENTINFINGEMENT COUNTERCLAIMS INVOLVING A SYSTEM OF EXTERNAL MEMORY AND PAGING SOFTWARE KNOWN AS THE '338 PATENT THEY ALSO AGREED ON WHICH THIRDPARTY COMPANIES WILL BE ALLOWED TO BUILD CYRIX'S MICROPROCESSOR WHICH IS PART OF THE '338 SYSTEM THE COMPANIES SAID THEY WILL ASK THE INTERNATIONAL TRADE COMMISSION TO DROP '338RELATED CLAIMS AGAINST A THIRD COMPANY THAT USED CYRIX CHIPS BUT INTEL SAID IT PLANS TO PROCEED ON A SEPARATE CLAIM IN THE CASE INVOLVING THE CYRIX CUSTOMER'S USE OF CHIPS MADE BY ADVANCED MICRO DEVICES INC THE TWO COMPANIES' DISPUTE OVER THE '338 PATENT HAS BEEN IN US COURT SINCE 1992 THEY WENT TO TRIAL OVER THE PATENT LAST MONTH IN FEDERAL COURT IN SHERMAN TEXAS THIS SETTLEMENT ENDS THE TRIAL AN INTEL SPOKESMAN SAID BUT INTEL SAID THE SETTLEMENT STILL LEAVES SOME '338 PATENT ISSUES UNRESOLVED IT IS APPEALING A DECISION IN THE SHERMAN FEDERAL COURT LAST MONTH THAT INTEL MAY NOT COLLECT ROYALTIES FROM CYRIX CUSTOMERS WHO BOUGHT CLONES OF INTEL'S 386 AND 486 CHIPS MADE BY CYRIX'S PRIMARY SUBCONTRACTOR CYRIX IS ALSO SEEKING THE COURT'S PERMISSION FOR TWO OTHER THIRDPARTY FACTORIES TO BUILD CLONED CHIPS 9402030115 940203 DEMOCRAT SHARP OF INDIANA WILL RETIRE FROM CONGRESS WASHINGTON REP PHILIP SHARP A MODERATE STEWARD OF THE NATION'S ENERGY POLICY FOR NEARLY TWO DECADES WILL RETIRE FROM CONGRESS AFTER THIS YEAR THE 51YEAROLD INDIANA DEMOCRAT HOLDS UNIQUE SWAY OVER ENERGY ISSUES AS BOTH CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE'S ENERGY SUBCOMMITTEE AND THE SECONDRANKING DEMOCRAT ON THE NATURAL RESOURCES COMMITTEE AND ITS ENERGY PANEL ONCE A SHEPHERD OF PRESIDENT CARTER'S ENERGY POLICY BY 1992 HE SPONSORED THE COMPREHENSIVE LAW ENCOURAGING OIL CONSERVATION NUCLEARPLANT LICENSING AND ALTERNATIVE FUELS THE FORMER POLITICALSCIENCE PROFESSOR TYPIFIED THE IDEALISTIC YOUNG OUTSIDERS WHO WON OFFICE IN 1974 IN THE LARGE WATERGATE CLASS OF DEMOCRATS THE PARTY QUICKLY MARKED REP SHARP AS A COMER BUT THE GRIND OF CONSTANT CAMPAIGNING IN A GOPLEANING DISTRICT TEMPERED HIS EARLY LIBERALISM AND LOWERED HIS PUBLIC PROFILE LONGDISAPPOINTED REPUBLICANS NOW SEE GOOD ODDS TO WIN THE SEAT MR SHARP SAID HE WASN'T LEAVING OUT OF FRUSTRATION WITH CONGRESS OR THE PUBLIC'S ANTIPATHY IN HIS HOUSE SPEECH YESTERDAY HE EXPRESSED PRIDE IN THE INSTITUTION I'M TIRED OF CAMPAIGNING HE TOLD REPORTERS AFTERWARD HIS 12YEAROLD SON STANDING NEARBY WOULD NO LONGER HAVE HIS NOV 4 BIRTHDAY MESSED UP BY ELECTIONS THE LAWMAKER ADDED ABOUT THREE DOZEN HOUSE MEMBERS HAVE ANNOUNCED OR ARE EXPECTED TO ANNOUNCE THEIR DEPARTURES NEARLY HALF OF THEM TO SEEK HIGHER OFFICE 9402030114 940203 SENATORS PLAN BILL COVERING COMMUNICATION BIPARTISAN EFFORT IS SEEKING TO ENSURE PUBLIC ACCESS AND TEAR DOWN BARRIERS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE IS FINALLY JOINING THE DEBATE OVER THE FUTURE OF TELECOMMUNICATIONS IN THE US A BIPARTISAN GROUP OF INFLUENTIAL SENATORS IS EXPECTED TO INTRODUCE LEGISLATION TODAY DESIGNED TO ENSURE ACCESS TO TELEPHONE SERVICES WHILE BREAKING DOWN BARRIERS BETWEEN CABLE TELEVISION COMPANIES AND LONGDISTANCE AND REGIONAL TELEPHONE COMPANIES THEIR PLAN HAS BEEN EAGERLY AWAITED IN THE HOUSE TWO BILLS ALREADY ARE ON THE FAST TRACK AND MANY LAWMAKERS AND INTEREST GROUPS HAVE BEEN WAITING IMPATIENTLY FOR THE SENATE TO SPRING INTO ACTION SPONSORS OF THE SENATE LEGISLATION INCLUDE COMMERCE COMMITTEE CHAIRMAN ERNEST HOLLINGS OF SOUTH CAROLINA AND COMMUNICATIONS SUBCOMMITTEE CHAIRMAN DANIEL INOUYE OF HAWAII BOTH DEMOCRATS AS WELL AS REPUBLICANS JOHN DANFORTH OF MISSOURI AND TED STEVENS OF ALASKA THEIR BILL EMPHASIZES THE GOAL OF ENSURING THAT EVERY US HOUSEHOLD CAN RECEIVE TELEPHONE SERVICE ALL TELECOMMUNICATIONS CARRIERS FOR EXAMPLE WOULD BE REQUIRED TO CONTRIBUTE TO A FUND OR PROVIDE INKIND PAYMENTS TO ENSURE THAT PHONE SERVICES REMAIN AVAILABLE TO ALL HOUSEHOLDS BEYOND THAT THE BILL WOULD ALLOW REGIONAL BELL TELEPHONE COMPANIES TO MANUFACTURE TELECOMMUNICATIONS EQUIPMENT AN ACTIVITY THAT IS OFF LIMITS FOR THE BABY BELLS UNDER THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM THE SENATE LEGISLATION ALSO WOULD SET UP A FRAMEWORK THAT EVENTUALLY WOULD ALLOW THE SEVEN GIANT BELL COMPANIES INTO THE LONGDISTANCE BUSINESS THE OTHER ACTIVITY BANNED BY THE CONSENT DECREE THE DECISION ON THAT WOULD REST WITH THE FEDERAL COMMUNICATIONS COMMISSION WHICH WOULD BE REQUIRED TO CONSULT WITH THE ATTORNEY GENERAL BEFORE ENTERING THE LONGDISTANCE ARENA BABY BELLS WOULD HAVE TO MEET FAIRLY STRINGENT TESTS DESIGNED TO PREVENT THEM FROM USING MARKET POWER TO SQUASH COMPETITORS TO PROVIDE LONGDISTANCE SERVICE OUTSIDE OF ITS REGION A REGIONAL BELL WOULD HAVE TO SHOW THAT THERE IS NO SUBSTANTIAL POSSIBILITY IT COULD USE MARKET POWER TO HARM COMPETITION IN THE MARKET IT PLANS TO ENTER BEFORE ENTERING LONGDISTANCE SERVICE INSIDE ITS TERRITORY A BELL COMPANY WOULD HAVE TO JUMP A MUCH HIGHER HURDLE THE FCC WOULD HAVE TO FIND THAT THE BELL COMPANY NOT ONLY HAS OPENED ITS OWN NETWORK TO COMPETITORS BUT ALSO ACTUALLY FACES REAL COMPETITION TO HASTEN COMPETITION IN LOCAL TELEPHONE SERVICE THE BILL WOULD REMOVE BARRIERS THAT PREVENT CABLE AND TELEPHONE COMPANIES FROM ENTERING EACH OTHER'S BUSINESSES UNLIKE A HOUSE BILL THAT WOULD REQUIRE BABY BELLS TO WAIT FIVE YEARS BEFORE FEDERAL REGULATORS CAN BEGIN REVIEWING WHETHER THEY CAN ENTER THE LONGDISTANCE MARKET THE SENATE BILL WOULDN'T IMPOSE A WAITING PERIOD THE HOUSE BILL SPONSORED BY JUDICIARY CHAIRMAN JACK BROOKS OF TEXAS AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL OF MICHIGAN WOULD LET STATE REGULATORS DECIDE WHEN A BELL COMPANY CAN PROVIDE INTRASTATE LONGDISTANCE SERVICE THE HOUSE ALSO IS CONSIDERING A BILL DESIGNED TO SPUR COMPETITION IN THE LOCAL TELEPHONE ARENA AND TO ESTABLISH A REGULATORY FRAMEWORK FOR FUTURE HIGHSPEED INTERACTIVE NETWORKS THAT CARRY VOICE DATA AND VIDEO SIGNALS THAT BILL WAS INTRODUCED BY REP EDWARD MARKEY D MASS CHAIRMAN OF THE TELECOMMUNICATIONS PANEL AND REP JACK FIELDS D TEXAS RANKING MINORITY MEMBER HOUSE ACTION ON BOTH BILLS IS EXPECTED LATER THIS MONTH A MAJOR PROVISION OF THE SENATE BILL WOULD ENCOURAGE MEDIA DIVERSITY INCLUDING BY ALLOWING BROADCASTERS TO USE THE AIRWAVES TO OFFER DATATRANSMISSION AND OTHER NONTRADITIONAL SERVICES AS LONG AS THEY PAY FOR USE OF THE SPECTRUM MEANWHILE LONGDISTANCE CARRIERS WARNED REP BROOKS AND OTHER LAWMAKERS THAT THE DELICATELY CRAFTED COMPROMISE WITH REP DINGELL COULD PUT MANY SMALLER LONGDISTANCE CARRIERS OUT OF BUSINESS IN AN OFTENCONTENTIOUS HEARING BEFORE THE HOUSE JUDICIARY COMMITTEE'S ECONOMIC AND COMMERCIAL LAW PANEL THEY TOOK AIM AT THE BILL'S PROVISION ALLOWING STATE REGULATORS TO DECIDE WHETHER A BELL COMPANY CAN OFFER LONGDISTANCE SERVICE WITHIN STATE BOUNDARIES BERNARD J EBBERS PRESIDENT OF LDDSMETROMEDIA COMMUNICATIONS INC TOLD LAWMAKERS THAT INSTEAD OF FUELING COMPETITION THE BELL COMPANIES COULD SMOTHER IT BECAUSE THE LONGDISTANCE INDUSTRY'S SMALLEST PLAYERS GENERALLY CONCENTRATE ON INSTATE SERVICE 9402030113 940203 TECHNOLOGY MCKESSON'S PCS UNIT WILL OFFER ITS SERVICE FOR HOME INFUSION SAN FRANCISCO A MCKESSON CORP UNIT WILL UNVEIL PLANS TODAY TO EXTEND ITS MANAGED PHARMACEUTICAL CARE SERVICES INTO THE FIELD OF HOME INFUSION THERAPY IN A VENTURE IT SAYS WILL CUT HEALTHCARE PROVIDERS COSTS FOR SUCH SERVICE BY 25 STEVEN I GERINGER PRESIDENT OF THE UNIT PCS HEALTH SYSTEMS INC SAID THAT BY MAY HE HOPES TO BRING ON LINE A NETWORK OF PHARMACIES USING COMPUTERS TO MONITOR AND MANAGE THE DRUGS INFUSED AT HOME THESE INCLUDE PAIN MEDICATIONS CHEMOTHERAPY INTRAVENOUS NUTRITION IMMUNESYSTEM BOOSTERS AND ANTIINFECTIVE DRUGS HOME INFUSION THERAPY CONCEIVED AS A COSTEFFECTIVE WAY TO ADMINISTER TREATMENT OUTSIDE THE HOSPITAL HAS RECENTLY COME UNDER FIRE FOR ALLEGED PRICEGOUGING WE THINK WE'VE PUT TOGETHER A PROACTIVE RESPONSE TO A WELLPUBLICIZED PROBLEM IN THIS INDUSTRY MR GERINGER SAID IN AN INTERVIEW ADDING THAT HE EXPECTS THE BUSINESS TO BE A PROFITABLE VENTURE PCS ALREADY HAS A MAJOR STAKE IN THE MANAGEDPHARMACEUTICAL BUSINESS PROCESSING 200 MILLION PRESCRIPTION DRUG CLAIMS TOTALING 6 BILLION A YEAR EXTENDING SUCH MANAGEDCARE SERVICES TO THE INFUSION CARE INDUSTRY WILL SAVE HEALTHCARE PLAN SPONSORS AN AVERAGE OF 25 FROM CURRENT OUTLAYS MR GERINGER ASSERTED HOMEINFUSION CASE MANAGEMENT WILL ALSO ALLOW PCS PHARMACISTS TO MONITOR CASES AND RECOMMEND COSTEFFECTIVE ALTERNATIVES THAT CAN SAVE TENS OF THOUSANDS OF DOLLARS PER PATIENT THE COMPANY SAID IN THE YEAR ENDED MARCH 31 1993 MCKESSON EARNED 1147 MILLION OR 269 A SHARE ON REVENUE OF 1167 BILLION 9402030112 940203 WHO'S NEWS NATIONSBANK CORP NATIONSBANK CORP CHARLOTTE NC TIMOTHY R GALLAGHER 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF NATIONS FINANCIAL CAPITAL CORP A DIVERSIFIED FINANCIALSERVICES COMPANY BASED IN STAMFORD CONN HE SUCCEEDS JAMES H OZANNE 50 WHO PREVIOUSLY WAS NAMED CHAIRMAN OF THE NEWLY FORMED NATIONS FINANCIAL HOLDING CORP PARENT COMPANY OF NATIONS FINANCIAL CAPITAL CORP AND NATIONSCREDIT THE NATIONSBANK CONSUMERFINANCE UNIT 9402030111 940203 REVIEW & OUTLOOK EDITORIAL ASIDES BAIT AND SWITCH WHEN CALIFORNIA VOTERS WERE SOLD A SALESTAX INCREASE LAST YEAR THEY WERE PROMISED THE MONEY WOULD GO TO PUBLIC SAFETY BUT IN RIVERSIDE COUNTY NEAR LOS ANGELES 5 OF THE FUNDS WILL BE GOING TO MIDNIGHT BASKETBALL AND OTHER SOCIALSERVICE PROGRAMS DESIGNED TO DIVERT YOUNGSTERS FROM TROUBLE SUPERVISORS THERE HAVE DECIDED MAYBE AFTERHOURS HOOPS DETERS CRIME BETTER THAN EXPENSIVE COPS BUT THAT WASN'T WHAT CLINT EASTWOOD TOLD THE VOTERS IN THE TV COMMERCIALS THAT SWUNG THE ELECTION AND MADE THE PUBLIC SECTOR'S DAY 9402030110 940203 WHO'S NEWS BIOMEDICAL WASTE SYSTEMS INC BIOMEDICAL WASTE SYSTEMS INC BOSTON ROBERT A PIRRAGLIA 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MEDICAL WASTE MANAGEMENT SERVICES CONCERN HE SUCCEEDS GENE FRISCO 35 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR PIRRAGLIA WAS VICE PRESIDENT CHIEF FINANCIAL OFFICER DENNIS A MILLER 56 WAS NAMED TO THE ADDED POST OF EXECUTIVE VICE PRESIDENT 9402030109 940203 MARKETING & MEDIA WARNER RECORDS STAR KNOWN AS PRINCE DISBAND JOINT EFFORT WIDELY PUBLICIZED VENTURE LAUNCHED IN 1992 IS SAID TO HAVE RUN UP A LOSS BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MUCHHERALDED JOINT VENTURE BETWEEN THE POP SINGER AND COMPOSER FORMERLY CALLED PRINCE AND WARNER BROS RECORDS INC A UNIT OF TIME WARNER INC HAS BEEN DISBANDED THE VENTURE PAISLEY PARK RECORDS WAS CREATED IN 1992 BY WARNER BROS RECORDS AND PAISLEY PARK ENTERPRISES INC AN ENTERTAINMENT COMPANY BASED IN CHANHASSEN MINN THAT IS FULLY OWNED BY THE POP STAR ALTHOUGH WARNER BROS RECORDS DECLINED TO COMMENT THOSE FAMILIAR WITH THE VENTURE SAY IT WAS DISBANDED BECAUSE OF LOSSES MO OSTIN CHAIRMAN OF WARNER BROS RECORDS ISSUED A STATEMENT THAT DESCRIBED THE RELATIONSHIP SIMPLY AS EXCITING AND CREATIVELY REWARDING WHEN THE VENTURE WAS ANNOUNCED IN SEPTEMBER 1992 THE POP STAR'S PUBLICITY TEAM CALLED IT THE BIGGEST SUCH CONTRACT IN RECORDINGINDUSTRY HISTORY WITH VALUES RANGING FROM 60 MILLION TO 100 MILLION WARNER BROS RECORDS HOWEVER NEVER CONFIRMED THE VALUE OF THE PACT AND THOSE FAMILIAR WITH THE ACCORD SUGGESTED YESTERDAY THAT SUCH FIGURES WERE HIGHLY SPECULATIVE IF THE JOINT VENTURE HAD TAKEN FLIGHT IT COULD HAVE BEEN VERY BIG BUT WARNER DIDN'T INVEST ANYTHING CLOSE TO 60 MILLION SAID ONE EXECUTIVE IT IS ESTIMATED THAT WARNER BROS RECORDS MAY HAVE INVESTED 10 MILLION IN PAISLEY PARK RECORDS SINCE SIGNING THE VENTURE AGREEMENT ON JAN 1 1992 AT THE TIME WARNER BROS RECORDS WAS SO OPTIMISTIC THAT IT MADE THE POP STAR A VICE PRESIDENT THE PERFORMER WHO WAS BORN PRINCE ROGERS NELSON CHANGED HIS NAME LAST JUNE 7 HIS BIRTHDAY TO A SYMBOL WHOSE PRONUNCIATION ISN'T CLEAR A PUBLICIST FOR THE PERFORMER SAID YESTERDAY THAT HE HASN'T GIVEN ANY EXPLANATION FOR THAT DECISION THIS ISN'T THE FIRST TIME A HEAVILY PUBLICIZED VENTURE BETWEEN AN ENTERTAINMENT COMPANY AND A MAJOR RECORDING STAR HAS PROVED DISAPPOINTING IN THE SPRING OF 1991 SONY CORP SIGNED AN AGREEMENT WITH MICHAEL JACKSON THAT CALLED FOR HIM TO PRODUCE MOVIES AND RECORDS AT THE TIME SONY SAID IT EXPECTED THE PACT TO GENERATE IN EXCESS OF 1 BILLION IN RETAIL SALES SEVERAL PROJECTS IN WHICH MR JACKSON WAS EXPECTED TO PARTICIPATE NEVER MATERIALIZED HOWEVER AND THE PERFORMER'S CAREER IS UNDER A CLOUD NOW THAT HE HAS SETTLED A CIVIL SUIT AGAINST HIM FOR A SUM SAID TO BE ABOUT 20 MILLION LAST YEAR PAISLEY PARK RECORDS ISSUED NEW ALBUMS BY ERIC LEEDS MAVIS STAPLES AND GEORGE CLINTON AS WELL AS A GREATEST HITS PACKAGE FROM PRINCE ENTITLED THE HITS/THE B SIDES IT IS POSSIBLE THAT WARNER BROS RECORDS MAY SIGN CONTRACTS WITH MR LEEDS MR CLINTON AND MS STAPLES AT A LATER DATE BUT NOTHING HAS BEEN DECIDED YET BOB MERLIS SENIOR VICE PRESIDENT AND DIRECTOR OF MEDIA INFORMATION FOR WARNER BROS RECORDS SAID THE POP STAR WILL CONTINUE TO MAKE AND PRODUCE RECORDS FOR THE COMPANY 9402030108 940203 RMI PROPOSES REVERSE SPLIT NILES OHIO RMI TITANIUM CORP SAID IT FILED PRELIMINARY PROXY MATERIAL TO EFFECT A REVERSE 1FOR10 STOCK SPLIT THE COMPANY SAID ITS PROXY MATERIAL STATES THAT IT INTENDS TO USE A RIGHTS OFFERING TO RAISE AS MUCH AS 30 MILLION FOR THE DEVELOPMENT OF NEW MARKETS FOR ITS PRODUCTS RMI MANUFACTURES TITANIUM MILL PRODUCTS HOTFORMED AND SUPERPLASTICALLY FORMED PARTS AND TITANIUM POWDER 9402030107 940203 CREDIT RATINGS BALLY MANUFACTURING GETS HIGHER RATINGS ON ITS DEBT FROM S&P NEW YORK STANDARD & POOR'S CORP RAISED ITS RATINGS ON BALLY MANUFACTURING CORP'S 12 BILLION IN DEBT CITING THE GAMBLING AND HEALTHCLUB CONCERN'S LOWER NEARTERM OBLIGATIONS BETTER LIQUIDITY AND STRONG CASINO RESULTS THE RATING CONCERN SAID THAT WHILE BALLY'S CONSOLIDATED DEBT LEVERAGE REMAINS HIGH COMPLETION OF A NUMBER OF CORPORATE REFINANCINGS HAS RESULTED IN MINIMAL DEBT MATURITIES OVER THE NEXT FEW YEARS THE REFINANCINGS COUPLED WITH DEBT ISSUED LAST YEAR BY THE CHICAGOBASED COMPANY'S BALLY'S CASINO HOLDING UNIT HAVE SUBSTANTIALLY IMPROVED THE PARENT'S LIQUIDITY AND REDUCED EARLIER CONCERNS ABOUT ITS ABILITY TO MEET SINKINGFUND REQUIREMENTS ON CERTAIN DEBT ISSUES THE RATING CONCERN SAID S&P SAID BALLY'S GAMBLING OPERATIONS HAVE PERFORMED QUITE WELL BUT THAT OPERATIONS AT BALLY'S HEALTH & TENNIS UNIT CONTINUE TO SUFFER FROM A HEAVY DEBT BURDEN AND HIGH OPERATING LEASES BALLY MANUFACTURING'S SUBORDINATED DEBT WAS RAISED TO SINGLEBPLUS FROM SINGLEB AS WERE SENIOR SUBORDINATED NOTES ISSUED BY BALLY'S HEALTH & TENNIS AND SENIOR DISCOUNT NOTES ISSUED BY BALLY'S CASINO HOLDINGS S&P ALSO RAISED ITS RATING ON FIRST MORTGAGE NOTES ISSUED BY BALLY PARK PLACE FUNDING INC TO DOUBLEB FROM DOUBLEBMINUS 9402030106 940203 TECHNOLOGY FIRST HANDHELD DATA COMMUNICATORS ARE LOSERS BUT MAKERS WON'T GIVE UP BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE FIRST GENERATION OF PERSONAL COMMUNICATORS IS DEAD IN THE WATER LONG LIVE THE SECOND GENERATION LESS THAN A YEAR AFTER THEIR INTRODUCTION THE FIRST HANDHELD DATA COMMUNICATORS SOMETIMES CALLED PERSONAL DIGITAL ASSISTANTS HAVE BEEN JUDGED BY THE MARKET AND FOUND WANTING APPLE COMPUTER CO'S NEWTON MESSAGEPAD STARTED OUT WITH A BANG LAST AUGUST SELLING 50000 UNITS IN THE FIRST MONTH BUT ITS SALES CURVE IS NOW GOING THE WRONG WAY HAVING DROPPED TO AN AVERAGE OF 7500 UNITS OVER THE FOLLOWING FOUR MONTHS AMERICAN TELEPHONE & TELEGRAPH CO'S EO DEVICE IS A MARKETING DISASTER SELLING A LITTLE MORE THAN 1000 UNITS A MONTH SINCE LAST MARCH ACCORDING TO ESTIMATES ANOTHER MODEL THE ZOOMER MADE BY CASIO AND SOLD BY TANDY CORP HAS HARDLY MADE A DENT IN THE MARKET THE PDA MARKET DOESN'T LOOK REAL ROSY FOR 1994 SAYS WILLIAM LEMPESIS A MARKET ANALYST IN PLEASANTON CALIF WHO LAST MONTH CUT HIS FORECAST FOR THE YEAR TO UNIT SALES OF 130000 TO 140000 FROM A PREVIOUS ESTIMATE OF 340000 PERSONAL COMMUNICATORS ARE INTENDED TO BE HANDY LITTLE GADGETS THAT STORE AND LINK A USER'S PERSONAL INFORMATION SUCH AS ADDRESSES PHONE NUMBERS AND TODO LISTS AND SEND AND RECEIVE TEXT MESSAGES VIA PAGERS WIRELESS NETWORKS AND TELEPHONE LINES BUT TECHNOLOGISTS AND MARKETERS ALIKE SAY THE PIONEERING COMPANIES DELIVERED TECHNICALLY FLAWED OVERPRICED DEVICES THAT DIDN'T DO ANYTHING PARTICULARLY COMPELLING SUCH AS COMMUNICATE WIRELESSLY I'VE HEARD PEOPLE SAY THAT EASE OF USE IS ONE OF THE KEY BARRIERS BUT I THINK THAT'S COMPLETELY WRONG SAYS NATHAN MYHRVOLD SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY AT MICROSOFT CORP THE PROBLEM IS THEY DON'T DO ANYTHING USEFUL BOTH APPLE AND AT&T MADE CRITICAL MARKETING AND TECHNICAL ERRORS JOHN SCULLEY APPLE'S FORMER CHAIRMAN CREATED INFLATED EXPECTATIONS FOR THE NEWTON BY HYPING IT FOR A FULL YEAR BEFORE ITS INTRODUCTION SAYING IT IS THE MOST IMPORTANT THING APPLE HAS EVER DONE AND WOULD BE INSTRUMENTAL IN CREATING A 35 TRILLION DIGITAL INFORMATION INDUSTRY OTHER PERSONALCOMMUNICATOR MAKERS ASSERT HIS TACTICS CREATED A SEVERE BACKLASH WHEN THE VERY LIMITED NEWTON WAS FINALLY SHIPPED EO'S MAKERS MISJUDGED THEIR MARKETPLACE INCORRECTLY ASSUMING USERS WOULD WANT TO USE A STYLUS TO ENTER LARGE AMOUNTS OF DATA IN THEIR DEVICES MOREOVER BOTH THE NEWTON AND EO RELY ON ERRORPRONE HANDWRITING RECOGNITION SOFTWARE AND EASY COMMUNICATIONS CAPABILITY SEEMS TO BE AN AFTERTHOUGHT FOR INSTANCE NEITHER HAS AN INTERNAL MODEM FOR SPEEDY WIRELESS DATA COMMUNICATIONS THE EO INCLUDES A CELLULAR PHONE BUT COSTS A HEFTY 2500 THE NEWTON STARTS OUT AT 700 BUT NEEDS A MODEM PAGER AND CONNECTIVITY KIT TO COMMUNICATE AT ALL TOTAL COST ABOUT 1300 STILL THE HISTORY OF TECHNOLOGY STRONGLY INDICATES THAT THERE'S NOTHING REMARKABLE OR PARTICULARLY OMINOUS ABOUT THE PERSONAL COMMUNICATOR'S PROBLEMS OR SLOW START APPLE'S MACINTOSH FOR EXAMPLE LANGUISHED FOR TWO GENERATIONS BECAUSE IT WAS TOO EXPENSIVE TOO LIMITED AND DIDN'T HAVE ANY JAZZY SOFTWARE TO RUN MOTOROLA INC SONY CORP AND COMPAQ COMPUTER CORP ARE ALREADY WORKING ON MORE ADVANCED PERSONAL COMMUNICATORS AND APPLE AND AT&T ARE GOING TO COME OUT WITH IMPROVED SECONDGENERATION MODELS LATER THIS YEAR IT WILL TAKE TWO OR THREE ITERATIONS BEFORE THESE THINGS ARE ANY GOOD SAYS KIMBALL BROWN THE CHIEF ANALYST FOR MOBILE COMPUTING FOR DATAQUEST A RESEARCH FIRM ADDS ANDREW SEYBOLD PUBLISHER OF A MOBILECOMPUTING NEWSLETTER THE GRANDSON OF NEWTON WILL BE A GREAT PRODUCT A SURVEY BY A RESEARCH FIRM LINK RESOURCES OF NEW YORK INDICATES STRONG INTEREST BY CONSUMERS IN A PRODUCT THAT WOULD MANIPULATE THEIR PERSONAL DATA PROVIDE BOTH VOICE AND WIRELESS DATA COMMUNICATIONS AND CONNECT THEM TO THEIR DESKTOP COMPUTERS BUT LINK ALSO FOUND THAT BUSINESS PEOPLE WILL BE THE INITIAL USERS OF WIRELESS DEVICES AND THAT A CONSUMER MARKET WON'T BEGIN TO DEVELOP UNTIL NEXT YEAR AT THE EARLIEST WHILE ALL PERSONAL COMMUNICATORS WILL FACE EXTERNAL OBSTACLES SUCH AS AN INITIAL LACK OF ATTRACTIVE SOFTWARE APPLICATIONS AND INEXPENSIVE WIRELESS NETWORKS MOTOROLA AND SONY ARE GOING TO SOME PAINS TO AVOID THE MISTAKES MADE BY APPLE AND AT&T MOTOROLA FOR EXAMPLE IS CREATING A DEVICE THAT'S A LITTLE THINNER AND LIGHTER THAN THE NEWTON AND WILL HAVE BOTH A TELEPHONELINE MODEM AND A WIRELESS MODEM BUILT IN BOTH MOTOROLA AND SONY WILL OFFER A NEW OPERATING SYSTEM CALLED MAGIC CAP THAT THEY ASSERT WILL PROVIDE THE ADDED VALUE AND USEFULNESS MISSING IN FIRSTGENERATION PDAS MAGIC CAP DEVELOPED BY GENERAL MAGIC INC A SOFTWARE CONSORTIUM BASED IN MOUNTAIN VIEW CALIF HAS THE LOOK AND FEEL OF AN INTRIGUING VIDEO GAME BUT IT ALLOWS USERS TO SEND MESSAGES WITH THE TAP OF A STYLUS OR FINGER AND IT FACILITATES THE USE OF ELECTRONIC AGENTS THAT CAN BE SENT OUT ON SPECIAL NETWORKS TO PERFORM SUCH TASKS AS FINDING AND FILTERING INFORMATION AT&T PLANS TO INTRODUCE A NATIONWIDE AGENTBASED NETWORK CALLED PERSONALINK THIS SUMMER BY WHICH TIME MOTOROLA AND SONY PLAN TO HAVE THEIR DEVICES ON STORE SHELVES WE HOPE THIS IS A REAL BUSINESS IN 1995 SAYS ROBERT GROWNEY THE HEAD OF MOTOROLA'S WIRELESS DATA GROUP IT WON'T REALLY START IN 1994 MODELS FROM MOTOROLA AND SONY ARE EXPECTED TO COST ABOUT 1000 EACH OR SLIGHTLY MORE DEPENDING ON THE NUMBER OF FEATURES APPLE AND AT&T CAN HARDLY BE COUNTED OUT AT THIS STAGE BOTH ARE PARTNERS IN GENERAL MAGIC AND PLAN TO USE THE AGENTBASED TECHNOLOGY THEMSELVES AT&T HAS GONE BACK TO THE DRAWING BOARD WITH THE EO PLANNING TO SHRINK IT TO A CELLULAR PHONE WITH BUILTIN SOFTWARE FOR STORING FILES AND MESSAGES BELLSOUTH CORP IS ABOUT TO SHIP A SIMILAR KIND OF PERSONAL COMMUNICATOR DESIGNED BY IBM CALLED THE SIMON MOTOROLA AND JAPAN'S SHARP AND MATSUSHITA ELECTRIC INDUSTRIAL CO HAVE ALL LICENSED NEWTON'S OPERATING SYSTEM AND INTEND TO SUPPORT THE TECHNOLOGY MOTOROLA'S MR GROWNEY SAYS RIDICULE OF THE NEWTON'S HANDWRITINGRECOGNITION SOFTWARE HAS BEEN ALMOST VICIOUS AND HE BELIEVES IT CAN BE PERFECTED IN LATER MODELS ALTHOUGH MANY TECHNOLOGISTS ARE DUBIOUS APPLE ITSELF IS DEVELOPING APPLICATIONS IN SOME CASES WITH OTHER COMPANIES THAT WILL DEEMPHASIZE OR ELIMINATE THE NEED FOR HANDWRITING RECOGNITION OR OFFER ALTERNATIVE INPUT OPTIONS SUCH AS AUTOMATIC DATA TRANSFER FROM DESKTOPS IT WILL OFFER LATER THIS YEAR A NEW MODEL WITH A LARGER SCREEN TO WHICH A KEYBOARD CAN BE ATTACHED AND IT DOESN'T RULE OUT A KEYBOARD ATTACHMENT FOR THE NEXT GENERATION OF THE CURRENT MODEL GASTON BASTIAENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISON SAYS THE NEWTON HAS BEEN THE VICTIM OF INFLATED SALES PROJECTIONS BY OUTSIDE ANALYSTS AS WELL AS APPLE'S OWN PREINTRODUCTION HYPE OF THE PRODUCT NEWTON SALES HAVE EXCEEDED MY WILDEST EXPECTATIONS HE SAYS TAKE THE HISTORY OF ANY NEW PRODUCT OR PLATFORM YOU'VE NEVER SEEN A PRODUCT TAKE OFF SO FAST NEWTON'S FIVEMONTH SALES ALTHOUGH DOWN SHARPLY FROM THE INITIAL LAUNCH PERIOD ARE STILL CLOSE TO THE TOTAL SALES OF CD PLAYERS IN THEIR FIRST TWO YEARS ON THE MARKET ACCORDING TO SONY IRA BRODSKY A WIRELESS EXPERT WHO HEADS DATACOMM RESEARCH CO WILMETTE ILL SAYS APPLE SHOULDN'T BE FAULTED FOR NOT GETTING IT RIGHT THE FIRST TIME COMPANIES NOW HAVE TO FOLLOW THE PRODUCTDEVELOPMENT MODEL MORE FAMILIAR IN CONSUMER ELECTRONICS HE SAYS PUT A PRODUCT OUT EVERY SIX MONTHS AND DO YOUR RESEARCH IN THE MARKETPLACE BY SEEING HOW PEOPLE RESPOND TO IT HE ADDS IT WOULD BE A TERRIBLE MISTAKE FOR SOME OF THESE COMPANIES TO CONCLUDE THIS MARKET ISN'T TO BE ANDY HERTZFELD GENERAL MAGIC'S SOFTWARE CHIEF AGREES AT THIS POINT WE'RE ALL PUTTING STAKES IN THE GROUND AS MUCH AS MAKING REAL PRODUCTS THIS IS A 10 TO 15YEAR ADVENTURE DON CLARK CONTRIBUTED TO THIS ARTICLE 9402030104 940203 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 FORT HOWARD CORP 750 MILLION TWOPART ISSUE OF NOTES PRICED IN TWO PARTS THROUGH LEAD MANAGER MORGAN STANLEY & CO THE FIRST TRANCHE 100 MILLION OF SENIOR NOTES DUE FEB 1 2002 WAS PRICED AT PAR TO YIELD 825 THE NONCALLABLE ISSUE IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE SECOND TRANCHE 650 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 1 2006 WAS PRICED AT PAR TO YIELD 9 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P REPAP WISCONSIN INC 400 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH LEAD MANAGER CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF FIRSTPRIORITY SENIOR SECURED NOTES DUE FEB 1 2002 WAS PRICED AT PAR TO YIELD 925 THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE SECOND TRANCHE 150 MILLION OF SECONDPRIORITY SENIOR SECURED NOTES DUE MAY 1 2006 WAS PRICED AT PAR TO YIELD 9875 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P BOTH ISSUES HAVE A THREEYEAR INITIALPUBLICOFFERING CALL OPTION FOR UP TO 35 OF THE COMPANY'S EQUITY REPAP WISCONSIN IS A UNIT OF REPAP ENTERPRISES INC USA MOBILE COMMUNICATIONS INC 125 MILLION OF SENIOR NOTES DUE FEB 1 2004 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL INC USA MOBILE IS A UNIT OF USA MOBILE COMMUNICATIONS HOLDINGS INC EMPRESAS LA MODERNA SA INITIAL OFFERING OF 53 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 3253 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO EACH DEPOSITARY SHARE REPRESENTS FOUR CLASS 1 SERIES A COMMON SHARES EQUITY MARKETING INC INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES PRICED AT 6 APIECE THROUGH LEAD UNDERWRITER JOSEPHTHAL LYON & ROSS INC USA MOBILE COMMUNICATIONS HOLDINGS INC INITIAL OFFERING OF 55 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL INC AND BRENNER SECURITIES WALDEN RESIDENTIAL PROPERTIES INC INITIAL OFFERING OF 68 MILLION COMMON SHARES PRICED AT 1925 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION 300 MILLION REVENUE BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 48313 YIELDS RANGE FROM 27 IN 1995 TO 515 IN 2013 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 227 MILLION REFUNDING REVENUE BONDS PRICED BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 475 IN 2006 TO 53 IN 2020 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 6467 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1693 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 501 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1694 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 973 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 207 IS BACKED BY THE AGENCY'S 15YEAR 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 947 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 88 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 66 MILLION OFFER OF INTERESTONLY STRIPPED MORTGAGEBACKED SECURITIES IO STRIP GS 005 IS BACKED BY THE AGENCY'S STRIPPED 30YEAR GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES COMPANIA ESPANOLA DE PETROLEOS SA SPAIN 15 BILLION SPANISH PESETAS OF 79 MATADOR BONDS DUE DEC 28 2000 AT ISSUE PRICE PAR VIA BANCO CENTRA HISPANOAMERICA SA FEES UNDISCLOSED CREDIT LOCAL DE FRANCE FRENCH AGENCY 300 MILLION ECUS OF 525 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 101175 VIA LEHMAN BROTHERS INTERNATIONAL LTD AND SWISS BANK CORP REOFFERED AT 9955 TO YIELD 535 FEES 1875 GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION OF 425 EUROBONDS DUE MARCH 4 1996 AT ISSUE PRICE 10099 VIA CS FIRST BOSTON INC REOFFERED AT 9999 TO YIELD 426 A MARGIN OF TWO BASIS POINTS OVER COMPARABLE US TREASURY FEES 1125 JCR PHARMACEUTICALS CO JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0625 NOTES DUE MARCH 31 1998 AT PAR VIA KANKAKU SUISSE SA NOTES CONVERTIBLE FROM MARCH 10 TO MARCH 18 1998 AT EXPECTED 25 PREMIUM OVER CLOSING SHARE PRICE MONDAY WHEN TERMS ARE TO BE FIXED FEES 1625 PEABODY DONATION FUND UNITED KINGDOM 50 MILLION OF 1025 DEBENTURE STOCK DUE FEB 22 2018 AT ISSUE PRICE 121723 VIA NATWEST CAPITAL MARKETS STOCK YIELDS 8185 A MARGIN OF 165 BASIS POINTS OVER 875 UK GILT OF 2017 STOCK TO TRADE INTERCHANGEABLY WITH 50 MILLION OF IDENTICAL STOCK OUTSTANDING FEES UNDISCLOSED PAYABLE SEMIANNUALLY PEOPLE'S REPUBLIC OF CHINA SOVEREIGN 1 BILLION OF 65 GLOBAL BONDS DUE FEB 17 2004 AT ISSUE AND REOFFER PRICE 99406 VIA MERRILL LYNCH & CO BONDS YIELD 6582 A MARGIN OF 85 BASIS POINTS OVER COMPARABLE US TREASURY FEES 0375 PAYABLE SEMIANNUALLY ROYAL BANK OF SCOTLAND PLC UK 500 MILLION OF 6625 EUROBONDS DUE MARCH 2 2004 AT ISSUE PRICE 100585 VIA UBS LTD SG WARBURG SECURITIES LTD AND ROYAL BANK OF SCOTLAND REOFFERED AT 98935 TO YIELD 677 A MARGIN OF 40 BASIS POINTS OVER COMPARABLE UK GILT FEES TWO 9402030103 940203 MARKETING & MEDIA TRIBUNE'S NET ROSE 38 FOR 4TH QUARTER TV NEWSPAPERS CITED CHICAGO TRIBUNE CO'S FOURTHQUARTER EARNINGS CLIMBED 38 ON STRENGTHENED RESULTS AT ITS BROADCAST AND NEWSPAPER OPERATIONS LOWER INTEREST OUTLAYS AND REDUCED EXPOSURE TO THE CONTINUING WEAKNESS OF ITS NEWSPRINT SUBSIDIARY THE BIG MEDIA CONCERN REPORTED NET INCOME OF 581 MILLION OR 80 CENTS A SHARE UP FROM THE YEARAGO PERIOD'S 42 MILLION OR 57 CENTS A SHARE REVENUE FELL 69 TO 5139 MILLION FROM 5521 MILLION A YEAR AGO THE REVENUE DOWNTURN REFLECTS THE COMPANY'S 1993 OFFERING OF A 51 VOTING STAKE IN ITS CANADABASED NEWSPRINT UNIT NOW KNOWN AS QUNO CORP QUNO'S RESULTS ARE REPORTED UNDER THE EQUITY METHOD OF ACCOUNTING TRIBUNE'S NEWSPAPER OPERATIONS WHICH INCLUDE THE CHICAGO TRIBUNE AND FIVE OTHER DAILIES SHOWED A 14 OPERATINGPROFIT INCREASE EXCLUSIVE OF A CHARGE IN THE YEARAGO PERIOD TO COVER SHUTDOWN OF A NORTHERN CALIFORNIA DAILY NEWSPAPER AD REVENUE GREW 7 HELPED BY A SOLID 12 INCREASE FROM CLASSIFIED ADS THE YEARAGO CHARGE TO CLOSE THE PALO ALTO CALIF PENINSULA TIMESTRIBUNE TRIMMED 12 CENTS A SHARE FROM EARNINGS BUT WAS OFFSET BY A 12 CENT GAIN THAT TRIBUNE CO WHICH OWNS THE CHICAGO CUBS BASEBALL TEAM REAPED FROM ITS SHARE OF MAJOR LEAGUE BASEBALL EXPANSION FUNDS TRIBUNE'S BROADCASTING AND ENTERTAINMENT GROUP WHICH BESIDES THE CUBS TEAM INCLUDES SEVEN TELEVISION STATIONS SIX RADIO STATIONS AND A SYNDICATEDPROGRAMMING BUSINESS SAW OPERATING PROFIT EXCLUDING THE BASEBALLEXPANSION FEES RISE 41 ON HIGHER REVENUES AT ITS TV AND RADIO OPERATIONS TRIBUNE'S PORTION OF QUNO'S FOURTHQUARTER LOSS CUT 11 CENTS A SHARE FROM THE LATEST RESULTS IN THE YEARAGO PERIOD WHEN TRIBUNE WAS THE UNIT'S SOLE OWNER QUNO'S LOSS REDUCED NET BY 13 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRIBUNE SHARES ROSE 1375 TO 60375 A SHARE 9402030102 940203 CHICAGO MERC'S MARGIN RULES ARE TOUGHENED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CHICAGO MERCANTILE EXCHANGE IN AN APPARENT EFFORT TO AVERT A NASTY STOCKMARKET SELLOFF IF INTEREST RATES BEGIN TO RISE SHARPLY IS MAKING IT MORE EXPENSIVE TO SPECULATE IN STOCKINDEX FUTURES THE CHICAGO MERC SAID IT WILL RAISE THE INITIAL AMOUNT OF MONEY SPECULATORS MUST PUT UP TO BUY OR SELL A FUTURES CONTRACT BASED ON THE STANDARD & POOR'S 500STOCK INDEX EFFECTIVE MONDAY AFTER THE CLOSE OF TRADING THE 25 RISE WILL REQUIRE SPECULATORS PUT UP 11250 OR 46 OF THE CONTRACT VALUE FROM 9000 SOCALLED MAINTENANCE MARGIN OR THE AMOUNT OF MONEY NEEDED TO KEEP A POSITION OPEN WILL INCREASE TO 10000 FROM 8000 FOR SPECULATORS IT IS THE FIRST TIME SINCE JANUARY 1991 THAT THE CHICAGO MERC HAS RAISED THE INITIAL MARGIN REQUIREMENTS ON THE S&P FUTURES CONTRACT THE MOVE APPLIES TO INVESTORS WHO AREN'T MEMBERS OF THE CHICAGO MERC THE ACTION APPARENTLY FOLLOWS PRESSURE FROM FEDERAL RESERVE AND COMMODITY FUTURES TRADING COMMISSION OFFICIALS A FED SPOKESMAN SAID THE CENTRAL BANK HAD NO TALKS WITH THE EXCHANGE BUT A CFTC SPOKESMAN CONFIRMED THAT THE AGENCY DISCUSSED THE MATTER WITH THE CHICAGO MERC WILLIAM BRODSKY PRESIDENT OF THE CHICAGO MERC SAID THE EXCHANGE DECIDED IT WAS PRUDENT TO RAISE INITIAL MARGIN REQUIREMENTS AFTER CONSULTATION WITH PEOPLE IN WASHINGTON THE TRUTH IS THAT THE STOCK MARKET IS UP 400 POINTS IN FOUR MONTHS A VERY SIGNIFICANT ONEWAY MOVE MR BRODSKY SAID OBVIOUSLY WE ARE NOT UNAWARE THAT THERE MAY BE AN UPTICK IN INTEREST RATES AND IT MAY HAVE AN IMPACT ON THE MARKET BUT IT IS ONE OF MANY THINGS WE CONSIDER UNDER THE CFTC REAUTHORIZATION BILL THAT WAS PASSED IN 1992 THE FEDERAL RESERVE HAS OVERSIGHT AUTHORITY OVER MARGIN REQUIREMENTS ON STOCKINDEX FUTURES WHICH IT HAS DELEGATED TO THE CFTC SOME ECONOMISTS SUGGESTED THE CHICAGO MERC MAY BE ACTING BECAUSE IT IS CONCERNED ABOUT A BRUTAL SELLOFF IN STOCKS IF THE FED RAISES INTEREST RATES ON MONDAY A DAY BEFORE THE CHICAGO MERC'S MOVE FED CHAIRMAN ALAN GREENSPAN WARNED THE JOINT ECONOMIC COMMITTEE OF CONGRESS THAT THE FED WOULD BOOST SHORTTERM INTEREST RATES AT SOME POINT BUT REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO OR HOW HIGH RATES MIGHT RISE THE CHICAGO MERC IS IN EFFECT SAYING THAT THEY THINK THE ODDS OF FED TIGHTENING HAVE INCREASED SAID EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE THE CHICAGO MERC DID THE PRUDENT THING THEY WANT TO MAKE SURE THAT PEOPLE WHO ARE BETTING ON THE STOCK MARKET ARE WELLCAPITALIZED HE SAID MR YARDENI ADDED THAT IF THE FED DID INDEED WEIGH UPON THE EXCHANGE TO RAISE ITS MARGIN REQUIREMENTS ONE COULD ASSUME THAT THE FED IS GEARING UP TO TIGHTEN MONETARY POLICY AND THEY DON'T WANT TO CREATE A DESTABILIZING SELLOFF IN THE MARKET INITIAL MARGIN REQUIREMENTS ON STOCK INDEX FUTURES HAVE VARIED SIGNIFICANTLY DURING THE PAST DECADE AND HAVE BEEN AS HIGH AS 22000 FOR SPECULATORS THE CHICAGO MERC UNDER PRESSURE FROM REGULATORS RAISED MARGIN REQUIREMENTS ON STOCKINDEX FUTURES AFTER THE OCTOBER 1987 CRASH AND AGAIN AFTER THE IRAQ INVASION OF KUWAIT BUT DURING THE PAST TWO YEARS THE MERC HAS BEEN LOWERING THE INITIAL MARGIN REQUIREMENTS ON STOCKINDEX FUTURES THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER SAID THE MERC'S MOVE SUGGESTS THE EXCHANGE IS CONCERNED ABOUT THE LEVEL OF SPECULATION IN THE MARKET IT MEANS THAT THE PEOPLE WHO RUN THE EXCHANGE THINK THAT SPECULATION IS GETTING A LITTLE BIT SCARY AND THEY ARE MAKING IT HARDER FOR PEOPLE TO SPECULATE HE SAID 9402030101 940203 WESTERN RESOURCES REDEMPTION TOPEKA KAN WESTERN RESOURCES INC SAID IT WOULD REDEEM 99 MILLION OF SEVERAL SERIES OF ITS FIRST MORTGAGE BONDS MARCH 4 THE COMPANY SAID IT WOULD REDEEM ITS 8 1/8 SERIES DUE 2007 AT A PRICE OF 100 ITS 7 5/8 SERIES DUE 1999 AT 10012 AND ITS 8 5/8 SERIES DUE 2017 AT 105054 THE BONDS WILL BE REDEEMED WITH FUNDS THAT RESULTED FROM THE COMPANY'S SALE OF ITS MISSOURI GAS PROPERTIES TO SOUTHERN UNION CO LAST MONTH WESTERN RESOURCES PROVIDES NATURALGAS SERVICE IN KANSAS AND NORTHERN OKLAHOMA AND ELECTRIC SERVICE TO CUSTOMERS IN EASTERN AND CENTRAL KANSAS 9402030100 940203 ENTERPRISE FOCUS ON FRANCHISING MORE FRANCHISERS ARE HELD LIABLE FOR CHAINS' NEGLIGENCE BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL FRANCHISEES' NEGLIGENCE CAN COST FRANCHISERS PLENTY FRANCHISERS HAVE LONG ARGUED THAT FRANCHISEES ARE INDEPENDENT BUSINESSES WITH LEGAL RESPONSIBILITY FOR THEIR MISSTEPS BUT INCREASINGLY COURTS ARE HOLDING THAT THE CONTROL FRANCHISERS EXERCISE OVER THEIR CHAINS MAKES THEM LIABLE TOO SPECIALISTS SAY THE LESS LEEWAY GIVEN TO FRANCHISEES THE GREATER THE RISK TO FRANCHISERS THEY ADD IN RECENT YEARS THERE HAS BEEN AN EXPLOSION OF CASES HOLDING FRANCHISERS VICARIOUSLY LIABLE FOR THE ACTS AND OMISSIONS OF FRANCHISEES SAYS DAVID J KAUFMANN A NEW YORK FRANCHISING LAWYER CONSIDER FRANCHISER DOMINO'S PIZZA INC THE TARGET OF LAWSUITS OVER ITS FORMER PRACTICE OF PROMISING PIZZA DELIVERY WITHIN 30 MINUTES A PRACTICE ALLEGED TO CAUSE ITS DRIVERS TO RUSH THE ANN ARBOR MICH FRANCHISER ABANDONED THAT POLICY IN DECEMBER AFTER A MISSOURI JURY AWARDED 78 MILLION IN MOSTLY PUNITIVE DAMAGES TO A ST LOUIS WOMAN WHO HAD BEEN INJURED BY A DRIVER FOR A DOMINO'S FRANCHISE THE PLAINTIFF CONTENDED THAT THE FRANCHISER'S DELIVERY POLICY WAS NEGLIGENT AND MADE IT LIABLE FOR HER INJURY WHEN IT COMES TO LEGAL PRECEDENT THOUGH DOMINO'S AND OTHER FRANCHISERS MAY HAVE MORE TO WORRY ABOUT IN A FLORIDA CASE THAT MORE EXPLICITLY ADDRESSES THE ISSUE OF SOCALLED VICARIOUS LIABILITY FOR FRANCHISEES' ERRORS AN APPEALS COURT IN WEST PALM BEACH REJECTED THE NOTION THAT AS A MATTER OF LAW DOMINO'S CAN'T BE SUED OVER AN AUTO ACCIDENT ALLEGEDLY TRIGGERED BY A TRUCK DRIVER FOR A DOMINO'S FRANCHISE IN A SUIT IN OKEECHOBEE COUNTY COURT BROTHERS RALPH AND RICKY PARKER SAY THEY WERE ATTEMPTING TO AID VICTIMS OF A TWOVEHICLE MISHAP IN THAT COUNTY IN 1986 WHEN A THIRD VEHICLE STRUCK THEM THEY SUED BOTH DOMINO'S AND ITS FRANCHISEE J&B ENTERPRISES INC OKEECHOBEE IN A SUMMARY JUDGMENT IN 1992 HOWEVER THE TRIAL COURT SAID DOMINO'S WASN'T LIABLE AS THE FRANCHISEE IS AN INDEPENDENT CONTRACTOR THE PARKERS APPEALED THAT RULING AND WON A DECISION THAT THE FRANCHISER POSSIBLY CAN BE HELD LIABLE DEPENDING ON HOW MUCH CONTROL IT EXERCISED OVER THE FRANCHISEE THE CASE WAS REMANDED TO THE TRIAL COURT DOMINO'S IS ASKING THE APPEALS COURT TO RECONSIDER THE RULING FRANCHISING IS BASED ON THE PREMISE THAT THE FRANCHISEE IS AN INDEPENDENT BUSINESS OWNER SAYS JOEL F GRAZIANI AN ANN ARBOR ATTORNEY FOR THE FRANCHISER BUT PHILIP M BURLINGTON A WEST PALM BEACH ATTORNEY FOR THE PARKERS SAYS THE LEVEL OF CONTROL BY DOMINO'S OVER ITS FRANCHISEE IS SO GREAT THAT THE FRANCHISER SHARES RESPONSIBILITY FOR ANY INJURIES THAT THE FRANCHISEE CAUSES THE LEGAL PRINCIPLES THAT GOVERN THE APPEALS DECISION AREN'T NEW AND ARE VERY WELL ESTABLISHED HE SAYS ADM INMAN'S ZOE BAIRD' PROBLEM AIDS MAIDSERVICE FRANCHISERS SUCH FRANCHISERS SEE A SILVER LINING IN THE CLOUDS AROUND BOBBY RAY INMAN THE LATEST PUBLIC FIGURE TO BE EMBARRASSED BY REPORTS OF IMMIGRATION OR TAX PROBLEMS WITH HOUSEHOLD HELP DAVID G MCKINNON PRESIDENT OF MOLLY MAID INC ANN ARBOR SAYS A DOZEN POTENTIAL FRANCHISEES HAVE MENTIONED ADM INMAN'S TARDY PAYMENT OF TAXES FOR A WORKER AS ONE REASON THAT THEY SEE A MAIDSERVICE FRANCHISE AS ATTRACTIVE WHEN CONSUMERS USE MAIDS FROM A FRANCHISE THE FRANCHISEE TAKES CARE OF THE TAXES AND OTHER PAPERWORK MOLLY MAID SAYS IT SOLD 33 US FRANCHISES LAST YEAR UP FROM 17 THE YEAR BEFORE IN PART BECAUSE BUYERS EXPECT GROWING NUMBERS OF CUSTOMERS OTHERS ALSO SAY THE FIELD IS BOOMING BUT MOSTLY FOR DEMOGRAPHIC REASONS THE NANNYGATE STUFF IS SMALL POTATOES SAYS DON M HAY PRESIDENT OF MAID BRIGADE INC ATLANTA THAT FRANCHISER SAYS SYSTEMWIDE REVENUE SURGED 15 LAST YEAR TO 15 MILLION MOSTLY BECAUSE GROWING NUMBERS OF WOMEN WORK OUTSIDE THE HOME A NEGATIVE ARTICLE ON DECORATING DEN CREATES AN UPROAR WITH JAMES S BUGG SR EXPECTED TO TAKE OVER FEB 13 AS CHAIRMAN OF THE INTERNATIONAL FRANCHISE ASSOCIATION A MCCALL'S MAGAZINE REPORT ON DECORATING DEN SYSTEMS INC IS TOPIC A IN CURRENT INDUSTRY TALK MR BUGG IS PRESIDENT OF THE FRANCHISER COPIES OF THE ARTICLE FAXED BY GOSSIPS ARE REACHING FRANCHISING PEOPLE WHO DON'T NORMALLY READ THE WOMEN'S MAGAZINE IT IS CERTAINLY AN EXPLOSIVE ARTICLE SAYS ONE EAST COAST PUBLICRELATIONS SPECIALIST THE PIECE SHATTERED DREAMS WOMEN WHO LOST ALMOST EVERYTHING FOCUSES ON DISGRUNTLED HOMEDECORATING FRANCHISEES OF DECORATING DEN CITING COMPANY FIGURES IT SAYS DECORATING DEN HAS AN UNUSUALLY HIGH TERMINATION RATE FOR FRANCHISES AND ALSO HAS MANY FRANCHISEES WHO FAIL TO MAKE MONEY DECORATING DEN CONFIRMS THAT 577 FRANCHISES SHUT DOWN IN THE THREE YEARS ENDED DEC 31 1992 ON THAT DATE 1138 FRANCHISES WERE IN OPERATION THE BETHESDA MD FRANCHISER CONTENDS THAT THE TERMINATION RATE IS ACCEPTABLE FOR AN INEXPENSIVE HOMEBASED FRANCHISE IN PART BECAUSE SOME PEOPLE ABANDON SUCH VENTURES AFTER TRYING THEM OUT FOR A WHILE AND IT SAYS MCCALL'S MOSTLY IGNORED HAPPY FRANCHISEES DECORATING DEN SAYS COMPANY OFFICIALS AND THEIR ALLIES HAVE FIRED OFF DOZENS OF INDIGNANT LETTERS NOT ONLY TO MCCALL'S BUT ALSO TO THE INDIVIDUAL DIRECTORS OF THE MAGAZINE'S OWNER NEW YORK TIMES CO A TABLOID HATCHET JOB WROTE STEVEN C BURSTEN FOUNDER OF DECORATING DEN AND THE 10YEAROLD DAUGHTER OF ONE HAPPY FRANCHISEE COMPLAINED THAT MCCALL'S IS VERRY PREGADOS THAT IS VERY PREJUDICED AGAINST THE FRANCHISER MR BUGG MAINTAINS IF WE WERE EVEN HALF AS BAD AS THIS ARTICLE PURPORTS US TO BE THE MARKET FORCES THAT OPERATE IN OUR ECONOMY WOULD HAVE ENDED OUR COMPANY YEARS AGO KATE WHITE EDITOR IN CHIEF OF MCCALL'S SAYS SHE STANDS BY THE ARTICLE AS VERY FAIR AND BALANCED THE MAGAZINE SAYS IT HAS ALSO RECEIVED LETTERS FROM PEOPLE APPLAUDING THE ARTICLE MR BUGG'S AGGRESSIVE DEFENSE HAS DONE NOTHING TO SILENCE HIS CRITICS OR THE IFA'S THE FRANCHISER GROUP HAS BEEN TRYING TO POLISH THE INDUSTRY'S IMAGE BUT IS JIM BUGG'S THE BEST FACE TO PUT FORWARD OBVIOUSLY NOT SAYS SUSAN P KEZIOS A FRANCHISEE ADVOCATE IN CHICAGO MR BUGG SAYS HE INTENDS TO SERVE AS IFA CHAIRMAN IF MEMBERS RATIFY HIS SELECTION BRIEFS THE IFA PREDICTS RECORD ATTENDANCE TOPPING 1000 FOR ITS ANNUAL CONVENTION TO BE HELD IN LAS VEGAS FEB 1316 AT THE CONVENTION THE WORKSHOP ON PUBLIC RELATIONS WILL BE MODERATED BY PATTI COONS SENIOR VICE PRESIDENT OF DECORATING DEN 9402030099 940203 AMBER'S STORES INC SALES CLIMB DALLAS AMBER'S STORES INC SAID ITS SALES ROSE 29 IN JANUARY TO 45 MILLION FROM 35 MILLION A YEAR EARLIER THE ARTSANDCRAFTS RETAILER'S SALES AT STORES OPENED FOR AT LEAST ONE YEAR FELL 124 FOR THE YEAR ENDED JAN 31 AMBER'S SALES ROSE 47 TO 62 MILLION FROM 422 MILLION SAMESTORE SALES FELL 76 9402030098 940203 STRATTON OAKMONT AGREES TO SETTLEMENT IN NOVA STOCK CASE NEW YORK THE SECURITIES AND EXCHANGE COMMISSION SETTLED CIVIL FRAUD CHARGES AGAINST BROKERDEALER STRATTON OAKMONT INC AND THREE OF ITS TOP OFFICERS THE LAKE SUCCESS NY COMPANY WHICH DIDN'T ADMIT OR DENY CHARGES AGREED TO DISGORGEMENT OF 15 MILLION PLUS PREJUDGMENT INTEREST OF 518622 AND CIVIL PENALTIES OF 500000 THE SEC ORIGINALLY CHARGED IN MARCH 1992 THAT STRATTON'S FOUR TOP OFFICERS USED AGGRESSIVE STOCKSELLING TACTICS TO MAKE AT LEAST 11 MILLION IN TWO EPISODES OF MANIPULATING THE SHARES OF NOVA CAPITAL INC ATLANTA THE SEC HAD CHARACTERIZED STRATTON AS A BOILER ROOM OPERATION THAT USED UNTRAINED BROKERS FOR MASSIVE COLDCALL SELLING UNDER THE SETTLEMENT STRATTON OAKMONT REMAINS IN BUSINESS BUT THREE TOP OFFICERS AGREED TO FINES AND STIFF PENALTIES THE BROKERAGE FIRM ALSO AGREED TO SET UP A FUND TO FIRST PAY INDIVIDUAL CLIENTS WHO SUFFERED LOSSES AS A RESULT OF THEIR PURCHASES AND SALES OF NOVA'S STOCK AND THEN FOR CUSTOMERS WHO HAVE WON ARBITRATION AWARDS AGAINST THE FIRM FORMER STRATTON OAKMONT PRESIDENT JORDAN BELFORT WILL PAY A CIVIL PENALTY OF 100000 AND HAS AGREED TO BE BARRED FROM ASSOCIATION WITH ANY BROKER DEALER INVESTMENT ADVISER INVESTMENT COMPANY OR MUNICIPAL SECURITIES DEALER FORMER SECRETARY KENNETH GREENE WILL PAY A 100000 CIVIL PENALTY AND IS BARRED WITH A RIGHT TO REAPPLY AFTER FIVE YEARS TO BECOME ASSOCIATED WITH BROKERS INVESTMENT COMPANIES OR SIMILAR ENTITIES FORMER VICE PRESIDENT DANIEL PORUSH WHO HAS BEEN PRESIDENT OF THE FIRM FOR THE PAST SIX MONTHS WAS SUSPENDED IN A SALES SUPERVISORY CAPACITY FOR 12 MONTHS AND ORDERED TO PAY A CIVIL PENALTY OF 100000 HE WILL CONTINUE AS PRESIDENT OF THE FIRM STRATTON OAKMONT SAID IT WAS EXTRAORDINARILY PLEASED WITH THE SEC SETTLEMENT NEW YORK ATTORNEY IRA LEE SORKIN OUTSIDE COUNSEL FOR THE FIRM NOTED THAT STRATTON OAKMONT HAD SET UP A RESERVE IN ANTICIPATION OF A SETTLEMENT THE FIRM HAS MORE THAN SUFFICIENT FUNDS TO KEEP ITS 300 EMPLOYEES AND BROKERS IN BUSINESS AND MEET ALL REGULATORY FINANCIAL REQUIREMENTS HE SAID 9402030097 940203 WHO'S NEWS NICHOLS RESEARCH AIDE TO LEAVE HUNTSVILLE ALA NICHOLS RESEARCH CORP SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER LAWRENCE R GREENWOOD ASKED TO BE PHASED OUT OF HIS CURRENT POSITIONS MR GREENWOOD HAS SERVED IN THE POSITIONS FOR TWO YEARS HE COULDN'T BE REACHED FOR COMMENT AND OFFICIALS AT NICHOLS DIDN'T RETURN PHONE CALLS A STATEMENT BY THE COMPANY SAID MR GREENWOOD'S TRANSITION WILL OCCUR DURING 1994 AND WILL ALLOW HIM TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY ADDED THAT MR GREENWOOD DURING THE TRANSITION WILL CONTINUE TO FOCUS ON CERTAIN AREAS OF BUSINESS DEVELOPMENT AT NICHOLS NICHOLS PROVIDES TECHNICAL SERVICES FOR STATE GOVERNMENTS THE DEPARTMENT OF DEFENSE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IN NASDAQ STOCK MARKET TRADING YESTERDAY THE COMPANY'S STOCK ROSE 50 CENTS TO 1525 A SHARE 9402030096 940203 POLITICS & POLICY CLINTON TODAY BEGINS AN ATTEMPT TO CLEAN UP BIG TOXICWASTE PROBLEM SUPERFUND LAW ITSELF BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AND CONGRESS ARE ABOUT TO TRY TO ALLEVIATE THE SUPERHEADACHE KNOWN AS SUPERFUND AT A NEWS CONFERENCE AND CONGRESSIONAL HEARING TODAY ENVIRONMENTAL PROTECTION ADMINISTRATOR CAROL BROWNER WILL UNVEIL DETAILS OF THE ADMINISTRATION'S PLAN TO REWRITE THE SUPERFUND LAW WHICH GOVERNS THE CLEANUP OF ABANDONED HAZARDOUSWASTE DUMPS OF ALL THE NATION'S ENVIRONMENTAL LAWS IT IS ARGUABLY THE ONE MOST HATED BY BUSINESSES HAVING ALREADY COST THEM AN ESTIMATED 57 BILLION IN CLEANUP AND LITIGATION COSTS WITH NO END IN SIGHT ADMINISTRATION OFFICIALS CLAIM THEIR PROPOSAL IS DESIGNED TO REDUCE THE COST TO BUSINESSES WITHOUT DIMINISHING THE BENEFITS FOR THE ENVIRONMENT IN FACT BOTH BUSINESS GROUPS AND ENVIRONMENTALISTS WILL LIKELY HAVE COMPLAINTS WITH THE NEW PROPOSAL BUT IN GENERAL THE NEW SUPERFUND PLAN PROVIDES FURTHER EVIDENCE THAT THE CLINTON ADMINISTRATION IS FAR MORE PROBUSINESS IN ITS APPROACH TO THE ENVIRONMENT THAN ITS CAMPAIGN RHETORIC WOULD HAVE SUGGESTED HERE ARE ANSWERS TO SOME MAJOR QUESTIONS ABOUT THE NEW BILL WHAT'S WRONG WITH THE CURRENT SUPERFUND LAW IN HIS FIRST SPEECH TO CONGRESS LAST YEAR PRESIDENT CLINTON DECLARED I'D LIKE TO USE THAT SUPERFUND TO CLEAN UP POLLUTION FOR A CHANGE AND NOT JUST PAY LAWYERS FROM BUSINESSES AND THE ENVIRONMENTAL COMMUNITY AS WELL THE MAIN COMPLAINT IS THAT THE LAW ENACTED IN 1980 AND REVISED IN 1986 HAS LED TO TOO MANY LAWSUITS AND TOO LITTLE CLEANUP OF THE 134 BILLION THAT BUSINESS AND GOVERNMENT HAVE SPENT ON SUPERFUND ACCORDING TO AN ESTIMATE BY THE CONGRESSIONAL BUDGET OFFICE 3 BILLION HAS BEEN SPENT ON LITIGATION MOST OF THE BUSINESS COMMUNITY BLAMES THE LITIGATION EXPLOSION ON THE FACT THAT AS CURRENTLY WRITTEN THE LAW CALLS FOR JOINT AND SEVERAL LIABILITY IN CLEANING UP TOXICWASTE SITES THAT MEANS AN INDIVIDUAL COMPANY CAN BE HELD FINANCIALLY LIABLE FOR CLEANUP OF AN ENTIRE DUMP SITE EVEN IF THE COMPANY DUMPED ONLY A MINUTE AMOUNT OF WASTE THERE AND EVEN IF THAT WASTE WAS DUMPED LAWFULLY AT THE TIME ANY COMPANY HELD LIABLE THEN HAS A STRONG INCENTIVE TO TURN AROUND AND SUE THE OTHER COMPANIES RESPONSIBLE THE RESULT IS A FLURRY OF LAWSUITS THAT CAN DELAY CLEANUP BUSINESS GROUPS AND ESPECIALLY THE INSURANCE COMPANIES WHICH OFTEN END UP PAYING CLEANUP BILLS ARGUE THAT THEY SHOULDN'T BE HELD LIABLE FOR TOXIC WASTES DUMPED BEFORE THE LAW WAS ENACTED IN 1980 OR EVEN BEFORE 1986 WHEN FEDERAL RECORDKEEPING REQUIREMENTS MADE IT EASIER TO DETERMINE WHICH COMPANIES DUMPED WHICH MATERIALS AT A SITE NOT COINCIDENTALLY 1986 IS ALSO WHEN INSURERS STARTED WRITING POLICIES THAT EXPLICITLY EXCLUDE LIABILITY FOR HAZARDOUSWASTE CLEANUP ENVIRONMENTALISTS ON THE OTHER HAND LIKE THE CURRENT SYSTEM BECAUSE IT STRENGTHENS THE GOVERNMENT'S HAND IN REACHING OUTOFCOURT SETTLEMENTS AND ENFORCES THE PRINCIPLE THAT NO MATTER WHAT THE LAW SAID AT ANY GIVEN TIME IT IS THE POLLUTER AND NOT THE GENERAL PUBLIC THAT PAYS FOR CLEANUP HOW WOULD THE CLINTON PLAN CHANGE LIABILITY UNDER THE SUPERFUND LAW THE PRESIDENT'S PLAN WHICH IS EXPECTED TO BE INTRODUCED IN THE HOUSE BY DEMOCRATIC REP AL SWIFT OF WASHINGTON AND IN THE SENATE BY DEMOCRATIC SEN FRANK LAUTENBERG OF NEW JERSEY WOULD LIMIT THOUGH NOT ELIMINATE LAWSUITS BASED ON THE TWO CONTROVERSIAL TYPES OF LIABILITY UNDER THE PRESIDENT'S PLAN A NONGOVERNMENTAL ARBITRATOR SUCH AS A NONPROFIT GROUP WOULD DETERMINE WHICH COMPANIES ARE RESPONSIBLE FOR WHICH WASTES AT A GIVEN DUMP AND ALLOCATE COSTS AMONG THEM ACCORDINGLY COMPANIES WOULDN'T HAVE TO ACCEPT THIS NONJUDICIAL DECISION BUT IF THEY DID THEY COULDN'T BE SUED BY OTHER BUSINESSES SEEKING TO RID THEMSELVES OF PART OF THEIR LIABILITY FOR SITE CLEANUP FOR COMPANIES THAT FIGHT THE ENVIRONMENTAL PROTECTION AGENCY IN COURT JOINT AND SEVERAL LIABILITY WOULD STILL EXIST BUSINESSES WOULD STILL BE LIABLE FOR DUMPING THAT OCCURRED PRIOR TO 1986 BUT THE FEDERAL GOVERNMENT WOULD CREATE A NEW FUND TO SETTLE LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS WITH AN AIM TOWARD REDUCING SUCH SUITS BY 95 THE FUND WOULD BE CREATED BY TAXING PROPERTY AND CASUALTY INSURERS 500 MILLION IN EACH OF THE FIRST TWO YEARS AFTER THE LAW TAKES EFFECT AND AS MUCH AS 700 MILLION A YEAR IN THE FOLLOWING THREE YEARS DEPENDING ON THE LAWS OF THE STATE IN WHICH THEY ARE SUING POLLUTING COMPANIES COULD GET 20 40 OR 60 OF THEIR CLEANUP COSTS FOR WASTES DUMPED BEFORE 1986 FROM THE NEW FUND IN STATES THAT TEND TO FAVOR INSURERS IN SUCH CASES SUCH AS FLORIDA AND NEW YORK THE FUND WOULD LIKELY PAY 20 IT WOULD LIKELY PAY 60 IN STATES THAT TEND TO FAVOR POLLUTING COMPANIES SUCH AS NEW JERSEY WHAT OTHER SIGNIFICANT CHANGES ARE IN THE BILL REFLECTING A LONGSTANDING CONSENSUS BETWEEN THE EPA AND THE BUSINESS COMMUNITY THE SUPERFUND PLAN WOULD ALLOW FEDERAL OFFICIALS GREATER FLEXIBILITY TO APPROVE DIFFERENT LEVELS OF CLEANUP FOR A SUPERFUND SITE DEPENDING ON THAT SITE'S EXPECTED FUTURE USE IN OTHER WORDS THE STANDARD WOULD BE DIFFERENT IF THE SITE IS GOING TO BECOME A PARKING LOT OR IF IT IS GOING TO BECOME A PLAYGROUND BUT THE EPA WOULD MOVE MORE QUICKLY ON HOT SPOTS OR AREAS WITHIN WASTE SITES WHERE DANGER FROM CONTAMINATION IS PARTICULARLY HIGH OVERALL THE ADMINISTRATION ESTIMATES THE CHANGES IN STANDARDS WILL REDUCE CLEANUP COSTS BY ROUGHLY 25 THOUGH THAT COULD CHANGE AS THE BILL MAKES ITS WAY THROUGH CONGRESS IN ADDITION PURCHASERS OF ABANDONED URBAN PROPERTIES THAT HAVE ALREADY BEEN DESIGNATED AS SUPERFUND SITES WOULD BE EXEMPTED FROM SUPERFUND LIABILITY A MOVE THAT IS AIMED AT EASING FINANCIAL BARRIERS TO REVITALIZING URBAN AREAS WHAT ARE PROSPECTS FOR THE BILL'S PASSAGE ENVIRONMENTAL AND BUSINESS GROUPS ARE BOTH LIKELY TO BE CRITICAL OF PARTS OF THE BILL BUT WILL PROBABLY FOCUS MOST OF THEIR EFFORTS ON QUIETLY CHANGING THE BILL AS IT MAKES ITS WAY THROUGH CONGRESS THE STRONGEST CRITICISM OF THE ADMINISTRATION BILL WILL COME FROM AN UNLIKELY ALLIANCE BETWEEN REV BEN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND SEVERAL INSURANCE AND OTHER BUSINESSES INCLUDING AMERICAN INTERNATIONAL GROUP INC TEXACO INC SHELL OIL CO PHILLIPS PETROLEUM CO AND OLIN CORP MR CHAVIS A LEADER OF THE ENVIRONMENTAL JUSTICE MOVEMENT SAYS THAT THE QUICKEST WAY TO CLEAN UP SUPERFUND SITES WHICH ARE DISPROPORTIONATELY LOCATED IN MINORITY COMMUNITIES IS TO ELIMINATE THE TWO CONTROVERSIAL TYPES OF LIABILITY AND PAY FOR CLEANUP ENTIRELY WITH TAXES ON BUSINESSES AND INDIVIDUALS VIRTUALLY EVERYONE AGREES THAT THE LEGISLATION ISN'T LIKELY TO MOVE QUICKLY THROUGH CONGRESS AND THAT FINAL PASSAGE MAY NOT OCCUR BEFORE THE PRESENT LAW EXPIRES NEXT FALL IF THAT IS THE CASE CONGRESS WILL HAVE TO PASS A STOPGAP BILL LATER THIS YEAR CONTINUING FUNDING FOR THE PROGRAM SUCH A MOVE HOWEVER IS LIKELY TO SLOW THE PACE OF CLEANUPS HOW WILL THE TAX ON INSURERS BE ASSESSED THE FEE AS THE ADMINISTRATION PREFERS TO CALL IT WILL BE DETERMINED BY TWO FORMULAS ONE OF THEM BASED ON PREMIUMS CHARGED FOR PROPERTY AND CASUALTY POLICIES WRITTEN BETWEEN 1970 AND 1985 AND THE OTHER FOR POLICIES WRITTEN AFTER 1985 9402030095 940203 MARKETING & MEDIA NEWS CORP REPORTS 70 INCREASE IN NET FOR FISCAL FIRST HALF SYDNEY AUSTRALIA NEWS CORP SAID AFTERTAX PROFIT BEFORE SPECIAL ITEMS FOR ITS FISCAL FIRST HALF ENDED DEC 31 ROSE 28 TO 6249 MILLION AUSTRALIAN DOLLARS US447 MILLION WHILE REVENUE GREW MORE THAN 9 TO A583 BILLION NET INCOME INCLUDING SPECIAL ITEMS WAS A7689 MILLION UP 70 FROM A4528 MILLION INTEREST EXPENSE FELL MORE THAN 11 TO A3439 MILLION DUE TO LOWER DEBT LEVELS IN THE US NEWS CORP'S MOVIE BUSINESS REPORTED THAT OPERATING PROFIT MORE THAN DOUBLED AIDED BY THE FILM MRS DOUBTFIRE WHICH HAS GROSSED OVER 170 MILLION SO FAR AND IS JUST ENTERING WORLDWIDE DISTRIBUTION THE TELEVISION BUSINESS HAD RECORD EARNINGS THE COMPANY SAID ALTHOUGH RESULTS WERE AFFECTED BY LOSSES FROM THE CANCELLATION OF THE CHEVY CHASE SHOW OPERATING PROFITS FROM MAGAZINES AND INSERTS FELL 24 DUE TO PRICING PRESSURES WHILE BOOK PUBLISHER HARPERCOLLINS'S WORLDWIDE OPERATING PROFITS ROSE 7 ON A 6 REVENUE GAIN IN THE UK NEWSPAPER OPERATING RESULTS FELL 30 DUE TO PRICE CUTS ALTHOUGH THE COMPANY NOTED CIRCULATON GAINS AT THE SUN AND TIMES NEWSPAPERS AUSTRALIAN NEWSPAPERS' OPERATING PROFIT ROSE AN UNSPECIFIED AMOUNT WHILE THE STAR TV OPERATION HAD A SMALL LOSS BUT HAS SHOWN ENCOURAGING GROWTH NEWS CORP SAID SEPARATELY PATRICK PURCELL PUBLISHER OF NEWS CORP'S BOSTON HERALD IS UNDERSTOOD TO BE NEGOTIATING TO BUY THE NEWSPAPER FROM NEWS CORP FOR AN ESTIMATED 10 MILLION NEWS CORP DECLINED COMMENT 9402030094 940203 POLITICS & POLICY HALF OF AIRPORTS IN CONGRESSIONAL STUDY SAW FUNDS RAIDED BY CITY GOVERNMENTS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME LOCAL GOVERNMENTS HAVE RAIDED THEIR AIRPORTS FOR HUNDREDS OF MILLIONS OF DOLLARS IN FEDERAL GRANT MONEY OVER THE PAST 12 YEARS ACCORDING TO A CONGRESSIONAL STUDY THE REPORT RELEASED YESTERDAY BY THE HOUSE TRANSPORTATION APPROPRIATIONS SUBCOMMITTEE FOUND THAT 17 OF 33 AIRPORTS SURVEYED HAVE HAD MONEY DIVERTED FOR NONAVIATION PURPOSES SINCE 1982 AND THAT THE DIVERTED FUNDS ALMOST 900 MILLION NEARLY EQUALED THE FEDERAL GRANTS THE 17 AIRPORTS RECEIVED ALTHOUGH THE REPORT SAYS AT LEAST 640 MILLION OF THE DIVERSION WAS LEGAL SOME OF IT WAS IMPROPER THE STUDY IS LIKELY TO FUEL AIRLINES' CLAIMS THAT AIRPORTS ARE INCREASING SURCHARGES ON PASSENGERS AND AIRLINES SO THEY CAN PUMP EXTRA CASH INTO THE CITIES AND STATES THAT RUN THE AIRPORTS AS WE HAVE SUSPECTED LOCAL OFFICIALS HAVE BECOME VERY CREATIVE IN FINDING WAYS TO CIRCUMVENT FEDERAL PROHIBITIONS AND GET MONEY OFF AIRPORTS SAID JIM LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION WHICH REPRESENTS AIRLINES THE ASSOCIATION HAS BEEN FIGHTING LOS ANGELES OVER A RECENT TRIPLING OF LANDING FEES AT LOS ANGELES INTERNATIONAL AIRPORT DIVERSION OF AIRPORT FUNDS FOR NONAVIATION USE IS GENERALLY ILLEGAL UNLESS AIRPORT AUTHORITIES RECEIVE SPECIAL PERMISSION FROM THE TRANSPORTATION DEPARTMENT HAWAII WHICH HAS PROPOSED INCREASING SIXFOLD LANDING FEES AT HONOLULU INTERNATIONAL AIRPORT DIVERTED MORE THAN 300 MILLION OF AIRPORT REVENUE TO OTHER PURPOSES OVER FOUR YEARS ACCORDING TO THE REPORT HAWAII DID SO WITH THE PERMISSION OF THE TRANSPORTATION DEPARTMENT AND OTHER AIRPORT OPERATORS HAVE RECEIVED SIMILAR EXEMPTIONS ALSO AIRPORTS THAT OPERATE UNDER PORT AUTHORITIES SUCH AS BOSTON'S LOGAN INTERNATIONAL AIRPORT ARE ALLOWED TO SHIFT FUNDS TO OTHER PORT AUTHORITY USES OTHER CITIES CLAIM THEY ARE EXEMPT INCLUDING SAN FRANCISCO WHICH HAS DIVERTED 119 MILLION FROM SAN FRANCISCO INTERNATIONAL AIRPORT OVER 12 YEARS TO SUBSIDIZE THE CITY'S PUBLIC TRANSPORTATION SYSTEM ACCORDING TO THE REPORT BUT THE TRANSPORTATION DEPARTMENT HASN'T DECIDED WHETHER THE CITY IS EXEMPT SOME AIRPORTS INCLUDING NEW ORLEANS INTERNATIONAL AIRPORT DONATE MONEY TO CHARITIES BUT THE CITED DIVERSIONS MORE OFTEN INVOLVE THINGS SUCH AS PAYMENTS IN LIEU OF TAXES AND MUNICIPAL USE OF AIRPORT PROPERTY THE LEGALITY OF SUCH PRACTICES WOULD DEPEND ON THE DETAILS OF EACH CASE AUSTIN TEXAS FOR EXAMPLE RUNS AN 18HOLE GOLF COURSE ON AIRPORT LAND AT ROBERT MUELLER MUNICIPAL AIRPORT ACCORDING TO THE HOUSE STUDY THE 84000 IN PROFIT THAT THE CITY KEPT LAST YEAR WAS A DIVERSION OF AIRPORT REVENUE CHARLES BROTHERS AN ASSISTANT CITY ATTORNEY IN AUSTIN DISAGREES SAYING THE CITY PAYS FOR MAINTAINING THE LAND AND THAT THE FEDERAL AVIATION ADMINISTRATION HASN'T RULED THAT THE ACCOUNTING FOR THE GOLF COURSE IS IMPROPER BOB CARR D MICH CHAIRMAN OF THE HOUSE SUBCOMMITTEE SAID THE FAA'S ENFORCEMENT OF DIVERSION RULES HAS BEEN NOTHING SHORT OF A JOKE HE SAID REGULATORS SHOULD CONSIDER STRIPPING FEDERAL FUNDS FROM AIRPORTS CAUGHT IMPROPERLY DIVERTING BUT SAID HE WOULDN'T SUPPORT GENERAL REDUCTIONS IN FEDERAL GRANTS TO AIRPORTS AIRPORTS HAVE BEEN CUT OFF FROM FEDERAL GRANT MONEY FOR SEVERAL MONTHS BECAUSE THE SENATE FAILED TO PASS AN AIRPORT FUNDING BILL LAST YEAR THE CLINTON ADMINISTRATION LAST WEEK PROPOSED A FOURYEAR AIRPORT GRANT BILL TOTALING 7 BILLION 9402030093 940203 L'OREAL NAMED IN SUIT SEEKING 100 MILLION OVER ARAB BOYCOTT NEW YORK L'OREAL SA WAS HIT WITH A 100 MILLION LAWSUIT IN NEW YORK STATE SUPREME COURT BASED ON ALLEGATIONS THAT THE FRENCH COSMETICS CONCERN COMPLIED UNLAWFULLY WITH THE ARAB LEAGUE'S BOYCOTT OF ISRAEL THE SUIT WAS BROUGHT BY TWO BROTHERS JEAN AND DAVID FRYDMAN WHO WERE PARTNERS WITH L'OREAL IN A FILM DISTRIBUTION COMPANY CALLED PARAVISION INTERNATIONAL SA THEY SAY THAT TO MOLLIFY THE ARAB BOYCOTT COMMITTEE THE FRENCH COSMETICS GROUP FORCED JEAN FRYDMAN FROM PARAVISION'S BOARD IN 1989 BECAUSE HE IS JEWISH THEIR SUIT NAMES L'OREAL AND SEVERAL AFFILIATED COMPANIES AND EMPLOYEES IT ALLEGES THAT L'OREAL COMMITTED A VARIETY OF CRIMES INCLUDING BRIBERY IN COMPLYING WITH THE BOYCOTT L'OREAL SAID THAT IT HADN'T ANALYZED THE SUIT IN DETAIL BUT THAT THE FILING APPEARS TO REPEAT PAST ALLEGATIONS WHICH ARE TOTALLY WITHOUT MERIT THE FRYDMANS FIRST RAISED THE CHARGES IN 1991 THEN AS NOW L'OREAL ACKNOWLEDGES HAVING MADE COMMITMENTS TO THE BOYCOTT OFFICE ALTHOUGH IT INSISTS THAT IT MERELY PROMISED TO DO THINGS IT WAS DOING FOR BUSINESS REASONS ANYHOW IT SAYS IT FOLLOWED THE ADVICE OF FRENCH OFFICIALS AND DIDN'T BREAK FRENCH LAW IT SAYS THE FRYDMANS ARE SIMPLY TRYING TO PRESSURE L'OREAL TO SETTLE AN OLD BUSINESS DISPUTE THEY HAVE WITH THE COMPANY AFTER FAILING TO WIN A SETTLEMENT IN FRANCE THE FRYDMANS ARE SUING IN NEW YORK IN PART BECAUSE US ANTIBOYCOTT LAW IS STRONGER THAN FRENCH LAW THE FRYDMANS ALSO ALLEGE THAT EFFORTS TO WRONG THEM WERE HANDLED PARTLY IN THE US BY A FORMER NAZI COLLABORATOR JACQUES CORREZE WHO ONCE HEADED L'OREAL'S US DISTRIBUTION COMPANY COSMAIR INC MR CORREZE DIED IN 1991 COSMAIR SAID MR CORREZE WAS ONLY THE COMPANY'S NONEXECUTIVE CHAIRMAN WITHOUT ANY OPERATING RESPONSIBILITIES AND THAT THE LAWSUIT CLEARLY MISSTATES THE ACTIVITIES OF COSMAIR INC 9402030092 940203 WHITE HOUSE LOSES A ROUND ON HEALTH VOTE INFLUENTIAL BUSINESS GROUP SUPPORTS RIVAL PROPOSAL DESPITE LOBBYING BID BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DESPITE VIGOROUS WHITE HOUSE LOBBYING AN INFLUENTIAL BUSINESS GROUP VOTED TO SUPPORT A HEALTHCARE BILL THE ADMINISTRATION OPPOSES THE POLICY COMMITTEE OF THE BUSINESS ROUNDTABLE AN ORGANIZATION OF CHIEF EXECUTIVES OF SOME OF THE NATION'S LARGEST CORPORATIONS VOTED TO BACK AS THE STARTING POINT FOR HEALTHCARE REFORM A BILL AUTHORED BY REP JIM COOPER D TENN AND SEN JOHN BREAUX D LA THE BILL HAS BEEN PUBLICLY CRITICIZED BY HILLARY RODHAM CLINTON AND OTHER ADMINISTRATION OFFICIALS PARTLY BECAUSE IT WOULDN'T MEET THE ADMINISTRATION'S GOAL OF GUARANTEEING HEALTH COVERAGE TO EVERY AMERICAN ROUNDTABLE OFFICIALS WOULDN'T DISCLOSE THE VOTE TALLY BUT A WHITE HOUSE OFFICIAL SAID IT WAS 4614 IN FAVOR OF THE COOPER PLAN THAT SUGGESTS THAT MORE THAN TWO WEEKS OF INTENSIVE WHITE HOUSE ARMTWISTING URGING ROUNDTABLE MEMBERS TO REFRAIN FROM PUBLICLY BACKING ANY PARTICULAR PIECE OF LEGISLATION FAILED TO SWAY EVEN A SINGLE VOTE TO THE PRESIDENT'S SIDE IN TELEPHONE CONFERENCE CALLS AMONG ROUNDTABLE MEMBERS JAN 13 AND 14 THE GROUP'S POLICY COMMITTEE HAD VOTED 4514 TO ADOPT A RESOLUTION SUPPORTING THE COOPERBREAUX BILL THE COOPER BILL WOULD PROVIDE TAX INCENTIVES TO HELP INDIVIDUALS BUY HEALTH INSURANCE WHILE THE CLINTON PLAN WOULD REQUIRE EMPLOYERS TO HELP BUY COVERAGE FOR THEIR WORKERS IN ADDITION THE COOPER BILL WOULD SEEK TO STIMULATE MARKET FORCES TO HOLD DOWN MEDICAL PRICES THE ADMINISTRATION PLAN WOULD DO THE SAME BUT IT WOULD LIMIT INSURANCE PREMIUMS IF MARKET FORCES FAIL HOURS BEFORE THE VOTE YESTERDAY ADMINISTRATION OFFICIALS INCLUDING MRS CLINTON WERE STILL MAKING CALLS TO THE EXECUTIVES THE POLICY COMMITTEE WAS ACTING ON A RECOMMENDATION FROM THE GROUP'S HEALTHCARE TASK FORCE HEADED BY ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE CO OF AMERICA THE TASK FORCE INCLUDES AMONG OTHERS A NUMBER OF INSURANCE FIRMS AND PHARMACEUTICAL COMPANIES THE ROUNDTABLE'S CHAIRMAN JOHN ONG CHIEF EXECUTIVE OFFICER OF BF GOODRICH CO SAID THE GROUP WASN'T ENDORSING THE COOPER BILL FULLY BUT HE SAID IT WOULD BE THE BEST APPROACH BECAUSE IT FOSTERS COMPETITION WHICH YIELDS A BETTER HEALTHCARE PRODUCT FOR THE CONSUMER AT A LOWER PRICE THE CLINTON BILL HE SAID WOULD RELY TOO MUCH ON GOVERNMENT REGULATION ADMINISTRATION OFFICIALS EXPRESSED DISPLEASURE BUT NOT SURPRISE AFTER THE VOTE WE THINK IT WAS A MISTAKE AND WE REGRET THEIR DECISION SAID JEFF ELLER A WHITE HOUSE SPOKESMAN WE WILL CONTINUE TO SEEK CONSTRUCTIVE DIALOGUE WITH MEMBERS OF THE BUSINESS ROUNDTABLE AND BUSINESSES THROUGHOUT AMERICA THE PRESIDENT IS A LOT MORE CONCERNED ABOUT THE WAY THIS PROCESS ENDS THAN HOW IT BEGINS MR COOPER HOWEVER WAS DELIGHTED I THOUGHT MAYBE THE MOMENTUM HAD SHIFTED AGAINST US HE SAID ALONG WITH STATEMENTS THIS WEEK BY THE NATIONAL GOVERNORS ASSOCIATION THE ROUNDTABLE ENDORSEMENT WILL HINDER WHITE HOUSE EFFORTS TO WIN APPROVAL OF THE SOCALLED EMPLOYER MANDATE MR COOPER PREDICTED EARLIER MR COOPER CLASHED DURING A HEARING WITH HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND REP HENRY WAXMAN D CALIF CHAIRMAN OF THE PANEL'S HEALTH SUBCOMMITTEE ALTERNATELY BRASH AND THINSKINNED HE SNAPPED AT MR DINGELL I LOOK FORWARD TO QUESTIONING THE CHAIRMAN ON HIS BILLS IN THE FUTURE AND THE TENNESSEEAN'S PENCHANT FOR CLICHES CLEARLY EXASPERATED HIS OLDER COLLEAGUES I'M A NEW DEMOCRAT MR COOPER SAID PROUDLY IN ONE EXCHANGE TO WHICH MR WAXMAN ANSWERED YOU'RE A YOUNG DEMOCRAT THE MAJOR FOCUS OF THE HEARING WAS THE COOPER PLAN'S PROPOSED CAP ON CORPORATE DEDUCTIONS FOR EMPLOYEE HEALTH BENEFITS A TAX CHANGE THAT WOULD YIELD SUBSTANTIAL REVENUE WHILE SERVING AS AN INCENTIVE TO CONTROL FUTURE HEALTH COSTS BUDGET ESTIMATES INDICATE THE CAP WOULD SAVE THE TREASURY AS MUCH AS 79 BILLION OVER FIVE YEARS SOME OF THIS WOULD PAY FOR SUBSIDIES FOR LOWINCOME PEOPLE BUT ABOUT TWOTHIRDS WOULD PAY FOR A NEW TAX DEDUCTION TO HELP PEOPLE PAY FOR HEALTH COVERAGE THE IDEA BORROWS FROM ONE ADVANCED BY EARLY PROPONENTS OF THE MANAGED COMPETITION SCHOOL OF HEALTHCARE REFORM WHO PROPOSED THAT WORKERS BE TAXED ON ANY BENEFITS ABOVE A BASIC LEVEL THE GOAL WOULD BE TO USE THE TAX CODE TO DISCOURAGE EXCESSIVELY GENEROUS HEALTH EXPENDITURES BUT THE INITIAL IDEA OF MORE INCOME TAXES WAS UNACCEPTABLE TO MANY CONSERVATIVES THE COOPER DEDUCTION SCHEME AVOIDS THIS PROBLEM BY TAKING TAX DEDUCTIONS AWAY FROM CORPORATIONS RATHER THAN INDIVIDUALS BUT IT WOULD TEND TO FAVOR THE WEALTHY BECAUSE BENEFITS REDISTRIBUTED IN THE FORM OF A NEW DEDUCTION WOULD BE WORTH MORE TO HIGHERINCOME INDIVIDUALS REP FRED GRANDY R IOWA A MEMBER OF THE HOUSE WAYS AND MEANS COMMITTEE AND LEAD COSPONSOR OF THE COOPER BILL ACKNOWLEDGED IT MAY BE NECESSARY TO MAKE ADJUSTMENTS IN THE PROPOSED INDIVIDUAL DEDUCTION AND REP JAMES GREENWOOD R PA AN IMPORTANT SWING VOTE ON THE ENERGY AND COMMERCE PANEL ARGUED FOR A MORE GENEROUS DEFINITION OF WHAT BASIC BENEFIT COSTS CORPORATIONS COULD DEDUCT 9402030091 940203 POLITICS & PEOPLE COELHO ON CONGRESSIONAL REFORM BY ALBERT R HUNT IN THE SPIRIT OF TAPPING JOSEPH KENNEDY TO OVERHAUL THE SECURITIES & EXCHANGE COMMISSION 60 YEARS AGO WHO BETTER TO PRESCRIBE CHANGES FOR THE TROUBLED INSTITUTION OF CONGRESS THAN TONY COELHO THE 51YEAROLD MR COELHO AFTER A METEORIC RISE RESIGNED AS HOUSE DEMOCRATIC WHIP IN 1989 UNDER A CLOUD OF ETHICAL SUSPICION HE HAS GONE ON TO ACHIEVE STUNNING SUCCESS WITH WERTHEIM SCHRODER & CO A WALL STREET INVESTMENT FIRM IN THE PROCESS HE WAS CLEARED OF ANY LEGAL WRONGDOING HE STILL POSSESSES ENORMOUS AFFECTION FOR CONGRESS BUT BRINGS A PERSPECTIVE THAT COMES ONLY FROM DISTANCE SITTING IN ONE OF HIS OFFICES LATE LAST WEEK SURROUNDED BY PICTURES AND MEMORABILIA OF HIS EARLIER LIFE THE FORMER CALIFORNIA DEMOCRATIC LAWMAKER ZEROS IN ON WHAT'S WRONG CONGRESS HAS BECOME STAGNANT IT HASN'T GROWN WITH THE CHANGES THAT HAVE OCCURRED IN SOCIETY THEY HAVE CREATED MORE POWER CENTERS AND WITH THEM MORE OPPORTUNITIES FOR GRIDLOCK THESE ARE NOT ONLY LEGISLATIVE CENTERS BUT YOU THEN GET THE LAW FIRMS THE LOBBYISTS AND ALL THE INDUSTRIES THAT THEN FIT IN WITH THEM JUST AS JOE KENNEDY WAS ABLE TO MANIPULATE FINANCIAL MARKETS IN THE 1920S TONY COELHO WAS ABLE TO MANIPULATE THIS SYSTEM IN THE 1980S HE UNDERSTOOD THESE POWER CENTERS AND HOW THEY THRIVED ON WHAT THE LATE CALIFORNIA POLITICIAN JESSE UNRUH CALLED THE MOTHER'S MILK OF POLITICS MONEY OR CAMPAIGN CONTRIBUTIONS HERE'S HOW TONY COELHO WOULD CHANGE THE SYSTEM HE KNOWS SO WELL LIMIT SERVICE ON CONGRESSIONAL COMMITTEES RATHER THAN IMPOSE TERM LIMITS FOR OFFICE A CONSTITUENCY HAS A RIGHT TO ELECT THEIR REPRESENTATIVE FOR AS LONG AS THEY WANT SAYS MR COELHO WHO SERVED FOR 11 YEARS AND HAS EXTOLLED THE VIRTUES OF CHANGE AND TURNOVER TO OLD CONGRESSIONAL FRIENDS BUT CONGRESSIONAL TERM LIMITS WOULD ELIMINATE MUCH OF THE KNOWLEDGE AND EXPERIENCE IN CONGRESS AND IN EFFECT TURN OVER POWER TO STAFF TO LOBBYISTS AND TO THE PRESS I DON'T THINK THAT'S WHERE THE POWER SHOULD BE THE UNDERLYING CASE FOR TERM LIMITS THAT CONGRESS IS DOMINATED BY LONGSERVING PROFESSIONAL POLITICIANS IS ERODING CHARLES COOK THE BEST INDEPENDENT ELECTION ANALYST NOW CALCULATES THAT IN THE NEXT CONGRESS AT LEAST 225 TO 230 REPRESENTATIVES OR OVER HALF THE HOUSE WILL HAVE BEEN ELECTED IN THE 1990S INSTEAD MR COELHO WANTS TERM LIMITS FOR COMMITTEE SERVICE SIX YEARS ON A SUBCOMMITTEE AND EIGHT YEARS ON A FULL COMMITTEE THEN LAWMAKERS WOULD HAVE TO ROTATE COMMITTEE ASSIGNMENTS WHEN INDIVIDUALS HAVE BEEN SUBCOMMITTEE OR COMMITTEE CHAIRMEN FOR TOO LONG THEY ARE NOT AS RECEPTIVE TO NEW IDEAS NEW CHALLENGES A SAM NUNN OR A DAN ROSTENKOWSKI HOWEVER WOULD RETAIN EXPERTISE FROM HIS PREVIOUS COMMITTEES YOU PROBABLY WOULDN'T SEE AS MANY PEOPLE STAYING AS LONG BUT YOU STILL WOULD RETAIN A LOT OF THE KNOWLEDGE AND EXPERIENCE AND IT WOULD MAKE FOR MUCH MORE INTERESTING FLOOR DELIBERATIONS MR COELHO NOTES AUTOMATICALLY REORGANIZE CONGRESS EVERY DECADE AN OFTREPEATED MYTH IS THAT CONGRESSIONAL STAFFS AND SUBCOMMITTEES HAVE BEEN MUSHROOMING YET AS LAST YEAR'S EXCELLENT STUDY OF CONGRESS BY THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION REPORTED CONGRESSIONAL STAFFING HAS BEEN LEVEL FOR MORE THAN A DECADE AND THE NUMBER OF SUBCOMMITTEES IS DECLINING SUBCOMMITTEES DID PROLIFERATE AFTER WORLD WAR II REACHING A PEAK IN BOTH BODIES IN 1975 151 IN THE HOUSE AND 140 IN THE SENATE BUT THEY HAVE DROPPED TODAY TO 115 IN THE HOUSE AND 86 IN THE SENATE TONY COELHO SAYS THE SYSTEM STILL IS OUT OF KILTER STAFF AND SUBCOMMITTEES COULD BE CUT SOME MORE HE BELIEVES AND THERE'S AN OBVIOUS NEED FOR REARRANGING LEGISLATIVE RESPONSIBILITIES HERE MR COELHO SHIES AWAY FROM SPECIFICS BUT SOME ARE APPARENT PANELS LIKE THE HOUSE ADMINISTRATION COMMITTEE AND THE SENATE SELECT COMMITTEES OUGHT TO BE ELIMINATED AND IT'S CLEAR THAT THE HOUSE WAYS AND MEANS AND SENATE FINANCE COMMITTEES HAVE TOO WIDE A JURISDICTION MOST CONGRESSIONAL CHANGES ARE DONE ON AN AD HOC BASIS SO THE FORMER HOUSE DEMOCRATIC WHIP WANTS AN AUTOMATIC REORGANIZATION AT LEAST EVERY 10 YEARS DIRECTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF BOTH HOUSES COMBINED WITH TERM LIMITS FOR COMMITTEES THAT SHOULD HELP REDUCE BOTH THE SPECIAL INTERESTDRIVEN PARALYSIS AND THE PREVAILING LET'SDOITTHISWAYBECAUSETHAT'STHEWAYWE'VEALWAYSDONEIT SYNDROME MR COELHO WORRIES LESS ABOUT TOO MUCH POWER SHIFTING TO CONGRESS NOTING THAT THESE EXECUTIVELEGISLATIVE BALANCEOFPOWER EQUATIONS INVARIABLY GO IN CYCLES HE DOES HOWEVER SUPPORT A MODIFIED LINEITEM VETO FOR TAXES AS WELL AS SPENDING TO GIVE THE PRESIDENT MORE LEVERAGE ON BUDGETARY MATTERS REFORM CAMPAIGN FINANCING SO LEGISLATORS DEAL MORE WITH SUBSTANTIVE ISSUES AND LESS WITH RAISING CAMPAIGN MONEY IN AMERICAN POLITICS THERE HASN'T BEEN A BETTER POLITICAL FUNDRAISER THAN TONY COELHO NOBODY KNOWS BETTER WHAT A DEBILITATING PROCESS IT IS THE PROBLEM IS NOT SO MUCH THAT CONTRIBUTORS THINK THEY OWN YOU OR INDUSTRIES CONTROL YOU ALTHOUGH THERE ARE EXAMPLES OF THAT MY CONCERN IS THE AMOUNT OF TIME IT TAKES FOR INDIVIDUALS TO RAISE MONEY I HAD A VERY CLOSE FRIEND IN THE SENATE WHO TOLD ME THAT IN THE TWO YEARS PRIOR TO REELECTION HE SPENDS AS MUCH AS 70 OF HIS TIME RAISING MONEY THAT MEANS HE ONLY SPENDS 30 OF HIS TIME ON THE COUNTRY'S PROBLEMS THERE HAS BEEN A REAL ARMS RACE IN SPENDING ON CONGRESSIONAL CAMPAIGNS SOARING FIVEFOLD FROM 99 MILLION IN 1976 TO 5266 MILLION LAST TIME MR COELHO WOULD PLACE A STRICT CAP ON OVERALL SPENDING HIGH ENOUGH NOT TO DISADVANTAGE CHALLENGERS REQUIRE FULL DISCLOSURE OF ALL CONTRIBUTIONS AND PROVIDE PARTIAL PUBLIC FINANCING HE WOULD REQUIRE THAT A SIGNIFICANT AMOUNT OF A CANDIDATE'S OVERALL MONEY COME FROM THAT PARTICULAR DISTRICT OR STATE TOTAL PUBLIC FINANCING AS IN PRESIDENTIAL GENERAL ELECTIONS IS DESIRABLE BUT MR COELHO DOUBTS THERE'S SUFFICIENT PUBLIC SUPPORT BUT HE SUGGESTS MORE THAN A FEW MEMBERS USE PUBLIC OPPOSITION AS AN EXCUSE TO OPPOSE EVEN PARTIAL PUBLIC FINANCING THEY DON'T WANT A COMPETITIVE RACE AND PUBLIC FINANCING WOULD CREATE MORE COMPETITIVE RACES AND THE MAN WHO ASSEMBLED THE DEMOCRAT'S MOST EFFECTIVE FUNDRAISING MACHINE IN THE 1980S KNOWS HE HELPED CREATE A MONSTER CAMPAIGNS HAVE NOW BECOME A FULLTIME BUSINESS YOU SET UP THE MECHANISM TO HAVE FULLTIME POLLSTERS FULLTIME MEDIA PEOPLE AND OTHERS THEY ARE ENGAGED YEARROUND THAT MEANS YOU RAISE ENOUGH MONEY TO PAY THEM ALL YEAR THE CYCLE JUST GOES ON AND ON ALSO IT'S LIKE HEALTH CARE IN THAT EVERY NEW FANDANGLE THING THAT COMES ALONG POLITICALLY YOUR CONSULTANT WANTS TO TRY YOU DON'T NEED IT BUT YOU'RE AFRAID THE OTHER SIDE WILL HAVE IT AND IT JUST KEEPS DRIVING COSTS UP 9402030090 940203 LETTERS TO THE EDITOR SOME GOOD MEDICINES ARE NONPRESCRIPTION YOUR JAN 11 MARKETPLACE ARTICLE ON US CONSUMER OVERUSE OF NONPRESCRIPTION MEDICINES FAILED EVEN TO ACKNOWLEDGE THE ESSENTIAL POINT THAT NONPRESCRIPTION MEDICINES TODAY ARE SERIOUS SAFE AND RELIABLE CONTRIBUTORS TO HEALTH CARE IN COST EFFECTIVENESS CONVENIENCE AND IN OFFERING EVER WIDENING OPPORTUNITIES FOR AMERICANS TO SEEK RELIEF FROM EVERYDAY ILLNESSES AND INJURIES YOU QUOTED A HALFDOZEN OR SO INDIVIDUALS GIVING ANECDOTAL EVIDENCE THAT AMERICANS OVERUSE NONPRESCRIPTION MEDICINES BUT YOU FAILED TO MENTION EVEN ONE OF THE NINE US STUDIES ALL PUBLISHED AND ALL AVAILABLE TO THE MOST CASUAL RESEARCHER WHICH SINCE 1984 HAVE REPEATEDLY DOCUMENTED THAT AMERICANS ARE CAUTIOUS AND RESPONSIBLE IN USING SELFMEDICATIONS PREFER TO TOUGH OUT EVERYDAY ACHES AND PAINS WHEN THEY CAN AND RESORT TO NONPRESCRIPTION MEDICAL RELIEF ONLY ABOUT ONETHIRD OF THE TIME THEY REPORT A PROBLEM HELLER STUDIES IN 1983 AND AGAIN IN 1992 FOR EXAMPLE SHOW BEYOND REASONABLE ARGUMENT THAT AMERICAN CONSUMERS ARE KNOWLEDGEABLE ABOUT THE MEDICINES THEY USE IN THE HOME AND GENERALLY UNDERSTAND THE BENEFITS AS WELL AS THE LIMITATIONS OF SELFMEDICATION THE STORY IS A DISSERVICE TO THOUSANDS OF YOUR READERS WHO BECAUSE OF COST CONSIDERATIONS PERSONAL CONVENIENCE AND A SENSE OF SELFEMPOWERMENT CONTINUE TO TURN TO DOING FOR THEMSELVES WHEN THEY CAN IN THEIR OWN HEALTH CARE AND THE FACTS SHOW THEY GENERALLY DO A GOOD JOB 9402030089 940203 HOW A NICE GIRL' EVOLVED INTO BOSS THE GANGSTER RAPPER HER VULGAR SONGS OF STREET LIFE AND ABOUT SHOOTING COPS BELIE A MIDDLECLASS PAST BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WEARING BAGGY DENIM GARB DARK SHADES AND A BLUEANDWHITE BANDANA AROUND HER HEAD LICHELLE BOSS LAWS SAUNTERS ARROGANTLY BEFORE A CROWD OF ARMWAVING FANS AT THE DC ARMORY IN A VEXATIOUS VOICE SHE SAYS I DON'T GIVE A F ABOUT NONE OF YA'LL THE AUDIENCE ROARS ADORINGLY AS ONE OF THE FIRST FEMALE GANGSTER RAPPERS TO CLIMB THE CHARTS THE 24YEAROLD MS LAWS IS BECOMING AS WELL KNOWN FOR HER PERSONA AS FOR HER MUSIC SHE BOASTS OF A PERSONAL ARSENAL OF AUTOMATIC WEAPONS AND OF HANGING WITH STREET GANGS SHE DRINKS MALT LIQUOR FROM 40OUNCE BOTTLES CURSES INCESSANTLY AND MUSES ALOUD ABOUT KILLING SOMEONE ANYONE SHE CERTAINLY DOESN'T RESEMBLE THE LITTLE GIRL WHO LILLIE AND JOE LAWS RAISED IN A MIDDLECLASS NEIGHBORHOOD OF DETROIT THE YOUNGEST OF THREE DAUGHTERS LICHELLE ATTENDED PRIVATE SCHOOL FROM FIRST GRADE THROUGH HIGH SCHOOL FOR 15 YEARS SHE WAS A STUDENT OF BALLET MODERN DANCE AND THE PIANO SHE ATTENDED CHURCH AND WENT TO COLLEGE SHE MAJORED IN BUSINESS AND BECAME A FRATERNITY SWEETHEART HOW DID THIS GIRLNEXTDOOR BECOME A MENACETOSOCIETY RAPPER I COME FROM A GOOD HOME BUT I'VE SEEN BOTH SIDES SHE SAYS I'VE SLEPT ON A BENCH AND HUSTLED IN THE GHETTO TOO MS LAWS NOW WORKS IN A GENRE GANGSTER RAP IN WHICH PROJECTING A TOUGH IMAGE IS AS IMPORTANT AS HER SOUND THE SAD TRUTH IS THE HARDER THE RAPPER'S IMAGE THE MORE MUSIC THEY SELL SAYS DAVID DICKERSON A SILVER SPRING MD RAPMUSIC PRODUCER IT WASN'T UNTIL MS LAWS ACQUIRED THE FLAVOR ENTERTAINMENT INDUSTRY JARGON DESCRIBING THE STYLE FOUND AMONG YOUTH FROM AMERICA'S MEAN STREETS THAT SHE WAS ABLE TO LAND A RECORDING CONTRACT I TRIED THE STRAIGHTUP NICE GIRL APPROACH SHE SAYS AND IT DIDN'T WORK SO SHE NOW RAPS SONGS SUCH AS A BLIND DATE WITH BOSS IN WHICH SHE ACTS OUT THE SEDUCTION AND MURDER OF HER DATE A MACHO MISOGYNIST WHEN MS LAWS WAS GROWING UP HER PARENTS WOULD TAKE THEIR THREE DAUGHTERS OUT TO DINNERS MOVIES AND PLAYS HER FATHER A RETIRED AUTO WORKER RECALLS DRIVING THROUGH THE CITY'S DEPRESSED AREAS AND TELLING HIS GIRLS THIS IS WHY I WANT YOU TO GO TO SCHOOL SO YOU DON'T HAVE TO LIVE LIKE THIS AT ST MARY OF REDFORD SCHOOL WHERE MS LAWS ATTENDED GRADES ONE THROUGH 12 SHE WAS KNOWN AS A QUIET STUDENT ONE OF HER COUNSELORS SISTER LORETTA SCHROEDER RECALLS HER AS A VERY PRETTY GIRL AND A LITTLE ON THE SHY SIDE BUT FOLLOWING THE LEAD OF HER MORE OUTGOING OLDER SISTER KARYL LICHELLE EVENTUALLY BROKE FROM HER SHELL AND BECAME A CHEERLEADER AND MEMBER OF THE HOMECOMING QUEEN'S COURT AFTER FINISHING HIGH SCHOOL IN 1987 MS LAWS ENROLLED AT OAKLAND UNIVERSITY IN ROCHESTER MICH AROUND THIS TIME SHE BEGAN ADMIRING THE FEMALE RAP GROUPS THAT WERE JUST BECOMING POPULAR SHE STARTED WRITING MATERIAL OF HER OWN AND TRYING IT OUT ON FELLOW STUDENTS SHE WOULD STAND OUTSIDE THE DORM AND RAP RECALLS CLASSMATE KEITH ARNOLD IT WAS OBVIOUS THAT SHE HAD A PASSION FOR IT EVENTUALLY MS LAWS AND CLASSMATE IRENE MOORE FORMED A GROUP AND PERFORMED AT CAMPUS FUNCTIONS LIKE OTHER FEMALE RAPPERS THEN THE ACT WAS FREE OF PROFANITY AND VIOLENT LYRICS WE WERE WEARING LITTLE CUTE MATCHING OUTFITS ON STAGE MS LAWS RECALLS IN THE MIDDLE OF HER JUNIOR YEAR MS LAWS DECIDED TO DROP OUT TO CONCENTRATE ON A CAREER AS A RAPPER SHE WORKED DAYS IN COMPUTERDATA ENTRY AND PERFORMED IN DETROIT RAP CLUBS AT NIGHT BY EARLY 1990 MS LAWS AND MS MOORE HAD MOVED TO LOS ANGELES IN HOPES OF GETTING DISCOVERED THEY SOON LEARNED THAT THE INDUSTRY WAS MORE FASCINATED WITH A GROUP OF HARDCORE GANGSTA RAPPERS LIKE ICET AND NWA THAN WITH THEIR SOFTER STYLE PRODUCERS WHO TURNED THEM DOWN WERE TELLING US THAT WE DIDN'T CURSE ENOUGH SAYS MS LAWS THE WOMEN DECIDED TO START USING PROFANITY IN THEIR RAPS WITH LITTLE MONEY MS LAWS SAYS THEY STAYED FIRST IN ROACHINFESTED HOTELS AND WHEN THEIR MONEY RAN OUT ON BENCHES OR AT PEOPLES' HOMES JEFF FORSTON A RAPPER AND PRODUCER SAYS HE PUT THEM UP FOR A FEW DAYS THE WOMEN WERE LIVING REAL FOUL HE RECALLS MS LAWS BEGAN DRESSING DOWN DONNING BAGGY PANTS BIG WORK SHIRTS AND SKULL CAPS DUDS FAVORED BY GANGSTER RAPPERS IN PROMOTING HER CAREER AS A GANGSTER RAPPER MS LAWS HAS MADE MUCH OF HER EXPERIENCES OF LIVING IN THE STREETS SHE SAYS SHE SOLD DRUGS AND HUNG WITH THE NOTORIOUS STREET GANG THE BLOODS SHE ALSO SAYS SHE SPENT SOME TIME IN JAIL SHE DIDN'T AND THE STORIES ABOUT HER LIFE ON THE STREETS CAN'T BE VERIFIED HER MOTHER ALSO INSISTS THAT SHE SENT HER DAUGHTER MONEY LICHELLE COULD HAVE STAYED AT THE EMBASSY SUITES WITH ALL OF THE MONEY WE WERE SENDING HER SHE SAYS IN ANY CASE HER MUSIC BEGAN TO REFLECT THE DESPERATION OF STREET LIFE SHE BEGAN WRITING EXPLICITLY VIOLENT AND SEXUAL RAP LYRICS THEN A YEAR AFTER ARRIVING IN LOS ANGELES MS LAWS AND MS MOORE WALKED INTO THE OFFICES OF TWO PRODUCERS TRACY KENDRICK AND COURTNEY BRANCH THEY INSISTED THAT SOMEONE LISTEN TO THEM RAP OR THEY WOULDN'T LEAVE RECALLS MR KENDRICK HE AND MR BRANCH LISTENED AND IMMEDIATELY BEGAN WORKING WITH THEM HELPING THEM POLISH THEIR MATERIAL AND GIVING THEM A PLACE TO LIVE EVERYONE ELSE OUT HERE HAD BEEN TURNING THEM DOWN SAYS MR BRANCH I HEARD LICHELLE RAP AND I SAID THIS IS THE GREATEST RAPPER ON EARTH ABOUT SIX MONTHS LATER WITH HER NEW MATERIAL DRESSEDDOWN IMAGE AND THE GUIDANCE OF MESSRS BRANCH AND KENDRICK MS LAWS SIGNED WITH DEF JAM WEST RECORDS A UNIT OF SONY CORP'S SONY MUSIC ENTERTAINMENT INC NOW GROSS SALES FROM MS LAWS'S FIRST ALBUM BORN GANGSTAZ HAVE REACHED 733000 SINCE ITS RELEASE LAST SPRING ACCORDING TO DEF JAM SHE HAS JUST RELEASED A VIDEO AND IS WORKING ON A SECOND ALBUM AND OTHER PROJECTS ON THE COVER OF BORN GANGSTAZ MS LAWS AND MS MOORE STRIKE VARIOUS POSES CLUTCHING AUTOMATIC WEAPONS BUT MS MOORE APPEARS ON THE RECORDING ONLY AS A GUEST MS MOORE IS NOW COMPLETING HER OWN ALBUM FOR DEF JAM AND THE TWO WOMEN NO LONGER PERFORM TOGETHER FOR MS LAWS'S PARENTS ACCEPTING THEIR DAUGHTER'S NEWFOUND FAME HASN'T BEEN EASY AT FIRST WE WERE COMPLETELY DISGUSTED WITH HER SAYS HER MOTHER WHEN STUDENTS AT THE JUNIORHIGH SCHOOL WHERE SHE TAUGHT WOULD COME UP TO ME AND SAY I HEAR BOSS IS YOUR DAUGHTER' I'D SAY NO I DON'T KNOW A THING ABOUT HER' MRS LAWS RETIRED FROM TEACHING LAST JUNE MEMBERS OF HER CHURCH TALK ABOUT HER DAUGHTER TOO NOT TOO MANY OF OUR ADULT FRIENDS AGREE WITH WHAT SHE'S DOING SAYS MRS LAWS MS LAWS MAKES NO APOLOGIES FOR HER MUSIC A LINE FROM ONE SONG THEY WONDER WHY THEY LABEL ME INSANE BECAUSE I LOADED THE CLIP AND TOOK THE NINE TO THE COPPER'S BRAIN EVEN AMONG THOSE WHO APPRECIATE GANGSTER RAP THERE ARE CRITICS WHO SAY THAT MS LAWS STILL ISN'T THE REAL THING ONE POPULAR PUBLICIST SAYS THAT AFTER MEETING HER RECENTLY HE REALIZED SHE'S NOT REALLY A GANGSTER SHE'S AS SWEET AS PIE BUT WHEN SHE RAPS HE ADDS SHE'S VERY CONVINCING MS LAWS ANSWERS SUCH CRITICISM THIS WAY I'M BOTH A GANGSTER AND A SMART BUSINESS PERSON I KNOW WHAT I'M DOING AND I KNOW HOW TO MAKE IT IN THIS BUSINESS 9402030088 940203 LETTERS TO THE EDITOR YOUR UGLY SENTIMENT NOT MINE THE MEANSPIRITED TITLE YOU GAVE TO MY RECENT JAN 26 EDITORIAL PAGE ARTICLE ON CRIME POLICY LET 'EM ROT DISGUSTED ME DISTORTED MY MESSAGE AND DISHONORED YOU AS I WROTE THE AMERICAN PEOPLE ARE MORALLY AND INTELLECTUALLY RIGHT ABOUT THE NEED TO INCARCERATE CHRONIC CRIMINALS ADULT AND JUVENILE MILLIONS OF SERIOUS CRIMES ARE COMMITTED EACH YEAR BY CRIMINALS WHO SHOULD HAVE BEEN KEPT BEHIND BARS PRESIDENT CLINTON IS RIGHT TO ENDORSE LIFE TERMS FOR THRICECONVICTED VIOLENT FELONS NOW LET HIM KEEP FAITH WITH THE PEOPLE ON CRIME AND OTHER ISSUES MY POPULIST PLEA TO LOCK UP VIOLENT AND REPEAT CRIMINALS IS ONE THING BUT YOUR REACTIONARY ROAR TO LET 'EM ROT IS QUITE ANOTHER YOUR TITLE IMPLIES A LACK OF CONCERN ABOUT CONDITIONS OF CONFINEMENT AND AN IRRELIGIOUS VENGEFULNESS TOWARD CRIMINALS YOUNG AND OLD THAT I LIKE MOST AMERICANS DO NOT SHARE EVERY SURVEY SHOWS THAT MOST AMERICANS WANT PRISONS TO BE NEITHER COUNTRY CLUBS NOR HELLHOLES PRISONERS DESERVE DECENT LIVING CONDITIONS AND SHOULD BE PROVIDED WITH EVERY OPPORTUNITY DRUG TREATMENT EDUCATION VOCATIONAL TRAINING FOR SELFBETTERMENT IN GOVERNING PRISONS 1987 COURTS AND CORRECTIONS 1990 AND NO ESCAPE 1991 I EXPLORED WAYS OF MAKING OUR COUNTRY'S PENAL INSTITUTIONS INCLUDING HIGHSECURITY PRISONS FOR LONGTERM PRISONERS AND LIFERS MORE SAFE HUMANE AND COSTEFFECTIVE LIKEWISE MOST AMERICANS DO NOT WANT TO THROW THE KEY AWAY ON YOUTHFUL OFFENDERS STUDIES BY MYSELF AND OTHERS SHOW THAT WHILE '60SSTYLE PREVENTION PROGRAMS DON'T WORK MANY GOVERNMENT PROGRAMS CAN AND DO MAKE A POSITIVE DIFFERENCE IN THE LIVES OF JUVENILES WHO HAVE BEEN IN TROUBLE WITH THE LAW FOR THEM THE WATCHWORD IS REHABILITATION NOT ROT YOUR SELFTITILLATING TITLE REMINDED ME THAT WHEN IT COMES TO CRIME POLICY LIBERAL ELITES HAVE TOO LONG DENIED THE PUBLIC'S LEGITIMATE DEMAND FOR PROTECTION AND JUSTICE BUT CONSERVATIVE ELITES HAVE TOO OFTEN DISHONORED ITS JUDEOCHRISTIAN CAPACITY FOR COMPASSION AND MERCY 9402030087 940203 LETTERS TO THE EDITOR A BULLY AND A COWARD IN REGARD TO DOROTHY RABINOWITZ JAN 20 EDITORIALPAGE ESSAY INMAN'S FALSE CRY OF MCCARTHYISM IN PURPORTEDLY CLARIFYING THE DEFINITION OF THE WORD MCCARTHYISM SO FLAGRANTLY OVERUSED IN THE 1990S MS RABINOWITZ DOESN'T COMPLETE THE ORIGINAL DEFINITION OF THE WORD WHEN IT WAS NEWLY MINTED IN 1950 SEVERAL VICTIMS OF THE WISCONSIN WILD MAN'S OUTRAGEOUS LIES NOTABLY SCHOLAR OWEN LATTIMORE CHALLENGED THE SENATOR TO REPEAT HIS CHARGES OFF THE SENATE FLOOR WHERE HE COULD BE SUED FOR SLANDER THE GUTLESS BULLY ALWAYS DUCKED THESE CHALLENGES MCCARTHYISM THUS IMPLIES COWARDICE AS WELL AS RECKLESS MENDACITY FORTUNATELY NO OTHER CONGRESSMAN BEFORE OR SINCE HAS EXPLOITED CONGRESSIONAL IMMUNITY LIKE THE LATE UNLAMENTED SEN MCCARTHY 9402030086 940203 BUSINESS BRIEF PAXAR CORP SALES AND EARNINGS DECLINE ESTIMATED FOR 4TH QUARTER PAXAR CORP SAID IT EXPECTS TO REPORT LOWER FOURTHQUARTER SALES AND PROFIT BECAUSE OF WEAKNESS IN THE APPAREL INDUSTRY ITS MAIN CUSTOMER PAXAR A PEARL RIVER NY COMPANY THAT MAKES IDENTIFICATION SYSTEMS AND PRODUCTS INCLUDING BARCODING AND INPLANT LABELING SYSTEMS SAID FOURTHQUARTER NET INCOME IS EXPECTED TO BE ABOUT 18 MILLION OR 13 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 24 MILLION OR 17 CENTS A SHARE SALES ARE EXPECTED TO BE 335 MILLION COMPARED WITH THE YEAR EARLIER'S 344 MILLION IN NASDAQ STOCK MARKET TRADING PAXAR STOCK ROSE 375 CENTS OR 27 TO CLOSE AT 14125 9402030085 940203 REVIEW & OUTLOOK EDITORIAL LABOR BLOWS RIGHT WHISTLE IT'S FEEDING TIME AT THE IOWA TROUGH AGAIN THE ISSUE IS PUBLIC SUBSIDY FOR CORPORATE DEVELOPMENT AND THIS TIME BIG LABOR HAS IT RIGHT AND THE PROBUSINESS REPUBLICAN GOVERNOR HAS IT WRONG IOWA GOVERNOR TERRY BRANSTAD WANTS TO OFFER ABOUT 73 MILLION IN SUBSIDIES TO LURE IPSCO A CANADIAN STEELMAKER TO LOCATE A PLANT NEAR THE MISSISSIPPI RIVER TOWN OF MONTPELIER WITH 300 JOBS INITIALLY PLEDGED THAT WOULD AMOUNT TO ABOUT 243000 IN SPECIAL TAX BREAKS AND GRANTS FOR EACH OF THE WORKERS THIS WOULDN'T SET THE RECORD KENTUCKY HOLDS THAT AT 350000 A POP ALSO FOR A MINIMILL RUN BY ANOTHER CANADIAN STEELMAKER BUT IOWA IS NO PIKER IN THE STATES' BIDDING WAR FOR DESIRED BUSINESSES AND IPSCO THINKS IT CAN GET ITS PRICE FROM SOMEONE SO IT'S TOLD THE IOWA LEGISLATURE TO GET A MOVE ON APPROVING THE DEAL THE IOWA FEDERATION OF LABOR SAYS STOP PRESIDENT JAMES WENGERT OBJECTS TO FAVORING SELECT COMPANIES WITH CORPORATE WELFARE AT THE EXPENSE OF OTHER POTENTIAL USES FOR THE TAX MONEY ONE SUCH USE WE'D SUGGEST COULD BE GENERAL TAX RELIEF SUCH AS A REDUCTION IN THE PROPERTY LEVY ON EXPENSIVE MACHINERY THAT VEXES THE IPSCO FOLKS AND NO DOUBT MANY OTHER BUSINESSES MR WENGERT SAYS LABOR IS OPPOSED EVEN THOUGH HE EXPECTS AN IPSCO FACILITY TO BE UNIONIZED AS ITS CANADIAN PLANTS ARE AN EXISTING UNION STEELMAKER IN THE AREA CONTENDS IT COULD BE PLACED AT A DISADVANTAGE INDEED AS TOM VILSACK A DOWNRIVER DEMOCRATIC STATE SENATOR OBSERVES YOU'RE ACTUALLY PICKING AND CHOOSING BUSINESSES SEVERAL DEMOCRATS IN IOWA AT LEAST DON'T THINK THAT'S A PROPER ROLE FOR GOVERNMENT THEY OUGHT TO SEND THAT MESSAGE TO THE WHITE HOUSE THE HANDOUT GAME WHETHER IT INVOLVES STEEL MILLS OR BASEBALL TEAMS OR HIGHTECH R&D STOPS WHEN POLITICIANS FATHOM OR ARE MADE TO LEARN THAT IT DOESN'T PAY OFF IN MOST CASES AND IT ISN'T THEIR ROLE IN LIFE TO BESTOW THESE FAVORS ANYWAY THEY OUGHT TO ATTEND TO COMPETITIVENESS BY MAXIMIZING THE APPEAL OF THEIR JURISDICTION TO EVERY KIND OF ENTERPRISE NOT JUST THOSE WITH A BIG SNOUT 9402030084 940203 MONEY GAMES MESS AT BANK IN SPAIN HINTS OF BASIC FLAWS IN NATION'S ECONOMY BANESTO SCANDAL IS JUST ONE IN A SERIES INVOLVING LOOSE FINANCIAL CONTROLS GLAMOROUS CHAIRMAN OUSTED BY NICHOLAS BRAY AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID MARC RICH THE SWISSBASED FINANCIER WHO HAS MADE HUNDREDS OF MILLIONS OF DOLLARS IN DEALS AROUND THE GLOBE DISCOVERED NOT LONG AGO THE PERILS OF DOING BUSINESS IN SPAIN MR RICH AND A GROUP OF SOPHISTICATED INVESTORS BOUGHT A BEACHSIDE VACATION DEVELOPMENT ON THE ISLAND OF MAJORCA FROM TWO SUBSIDIARIES OF BANCO ESPANOL DE CREDITO IN 1988 WITH SPAIN'S ECONOMY BOOMING AND TOURISTS FLOODING THE ISLAND THE DEAL SEEMED A SURE THING BUT THE INVESTORS LATER LEARNED THAT THE COMPLEX 1470 APARTMENTS IN 19 BUILDINGS WAS BUILT WITHOUT PROPER ZONING PERMITS AND THEY COULDN'T LEGALLY DO MAINTENANCE WORK AND WOULDN'T BE ABLE TO SELL THE PROPERTY TO CASH IN ON THEIR INVESTMENT MR RICH AND HIS PARTNERS SUED THE BANK KNOWN AS BANESTO AND WON 57 BILLION PESETAS 404 MILLION IN AN ARBITRATION RULING IN DECEMBER WHETHER THEY WILL EVER RECOVER ANY MONEY IS UNCLEAR THE CLAIM IS A DROP IN THE OCEAN OF LOSSES RECENTLY UNCOVERED AT THE SPANISH BANK THOUGH BANESTO SUPPOSEDLY WAS ON THE MEND WITH THE HELP OF JP MORGAN & CO OF NEW YORK REGULATORS EFFECTIVELY TOOK OVER BANESTO AFTER FINDING A FINANCIAL SHORTFALL NOW ESTIMATED AT 43 BILLION EMBARRASSED SPANISH OFFICIALS ARE DISCOVERING THAT THE MAJORCA DEAL WASN'T AN ABERRATION INSTEAD IT IS PART OF AN EMERGING COMPLEX PICTURE OF INEFFICIENCY GREED AND CORRUPTION AT ONE OF SPAIN'S LARGEST AND MOST PRESTIGIOUS BANKS WHEN WE GOT HERE WE WERE AMAZED SAYS ONE OF THE OFFICIALS BROUGHT IN BY THE BANK OF SPAIN THE CENTRAL BANK AT YEAR END TO RUN BANESTO THE BANK'S ORGANIZATION WAS 20 YEARS OUT OF DATE ITS CONCEPT OF RISK WAS COMPLETELY DIFFERENT FROM OURS MOST SURPRISING OF ALL PEOPLE DIDN'T SEEM TO KNOW WHOM THEY WERE WORKING FOR THE BOARD OF THE BANK THE BANK ITSELF OR JUST A FEW PEOPLE WITHIN THE BANK INDEED AS INVESTIGATORS TRY TO FIND OUT WHAT WENT WRONG AT BANESTO SOME SPANIARDS WONDER WHETHER THE BROADER QUESTION IS WHAT HAS GONE WRONG WITH SPAIN A WAVE OF OPTIMISM SET OFF BY THE DEATH OF DICTATOR FRANCISCO FRANCO IN 1975 AND SPAIN'S SUBSEQUENT ADMITTANCE INTO THE NORTH ATLANTIC TREATY ORGANIZATION IN 1982 AND THE EUROPEAN COMMUNITY IN 1986 HAS LARGELY SUBSIDED DESPITE HUGE INFUSIONS OF EC AID SPAIN STILL GENERALLY LAGS BEHIND MOST OF ITS NEIGHBORS TO THE NORTH UNEMPLOYMENT IS A STAGGERING 23 THE GAP BETWEEN RICH AND POOR IS WIDENING NATIONAL PRIDE IS DISSOLVING INTO SELFDOUBT BAD LOANS AND BAD INVESTMENTS IN NONBANKING BUSINESSES AREN'T ALL THAT BROUGHT DOWN BANESTO AND ITS FORMER CHAIRMAN MARIO CONDE A 45YEAROLD FOND OF EXTRAVAGANT LIVING SPAIN'S TRADITIONALLY COZY RELATIONSHIPS BETWEEN FINANCIERS AND POLITICIANS WEAK BANK AND STOCKMARKET REGULATION AND OUTSIDE DIRECTORS' FAILURE TO KEEP TABS ON EXECUTIVES CREATED THE CONDITIONS FOR SUCH A SCANDAL NEITHER MR CONDE NOR HIS LAWYERS RESPONDED TO REQUESTS FOR COMMENT SPANIARDS WORRY THAT BANESTO ILLUSTRATES THE DARK SIDE OF HOW BUSINESS IS DONE IN SPAIN THERE'S A LOT OF PESSIMISM SAYS RAMON REYES A CONSULTANT AT EGON ZEHNDER INTERNATIONAL HERE PEOPLE WERE BEING DELUDED BY A MIRAGE OF GROWTH NOW THEY'RE BEGINNING TO REALIZE THEY WERE TAKEN FOR A RIDE ALTHOUGH BANESTO IS STILL OPERATING AND ITS STOCK RESUMED TRADING THIS WEEK ITS RECENT HISTORY OBSERVES LUIS MIRANDA LOPEZ MANAGING DIRECTOR OF APV BAKER IBERICA SA A MAKER OF FOODPROCESSING MACHINERY SHOWS HOW DIVORCED FINANCE AND THE PRODUCTIVE ECONOMY HAVE BECOME INDUSTRY IS FIGHTING TO SURVIVE IN A CRISIS THAT DOESN'T SEEM TO HAVE TOUCHED BOTTOM WHILE BANKS LIKE BANESTO MAKE MONEY THROUGH ACCOUNTING TRICKS THE BANESTO MESS IS ONLY ONE OF A SERIES OF FINANCIAL SCANDALS GERMANY'S VOLKSWAGEN AG RECENTLY ALLEGED THAT ITS SEAT CARMAKING SUBSIDIARY IN SPAIN DELIBERATELY UNDERREPORTED LOSSES TO ITS PARENT INSTEAD OF 85 MILLION SEAT ACTUALLY HAD A 13 BILLION LOSS LAST YEAR IN ANOTHER CASE MORE THAN 20000 SPANISH UNION MEMBERS HAVE SEEN THEIR SAVINGS DISAPPEAR IN A 500 MILLION REALESTATE SCANDAL AND IN THE BIGGEST CASE OF ALL DISCLOSED LAST YEAR THE KUWAIT INVESTMENT OFFICE LOST SOME 5 BILLION ON INVESTMENTS IN VENTURES ORGANIZED BY ITS SPANISH REPRESENTATIVE JAVIER DE LA ROSA ALL FOUR SCANDALS INVOLVED LAX FINANCIAL AND MANAGEMENT CONTROLS THOUGH NO ONE EXPECTS ANOTHER BANK COLLAPSE ON QUITE THE SCALE OF BANESTO'S SOME FEAR THAT IN SPAIN'S CURRENT POLITICAL AND BUSINESS ENVIRONMENT LAX OVERSIGHT OF BUSINESS COULD CAUSE MORE TROUBLE SOMETHING LIKE BANESTO COULD EASILY HAPPEN AGAIN WARNS FEDERICO JIMENEZ LOSANTOS A WRITER WHO HAS EXTENSIVELY CRITICIZED MR CONDE LAX ATTITUDES ARE A PROBLEM ALL ACROSS SPANISH SOCIETY COMPANIES ROUTINELY PAY EMPLOYEES PART OF THEIR EARNINGS IN CASH TO AVOID STEEP SOCIALSECURITY TAXES SAYS A PARTNER IN AN ENGINEERING FIRM TAX EVASION IS COMMON WHEN BANCO POPULAR ESPANOL FIRED A BRANCH MANAGER LAST YEAR FOR HELPING A CLIENT EVADE TAXES IT GOT AN AVALANCHE OF LETTERS DEFENDING THE MANAGER HIGH TAXES AND RED TAPE SAYS LUIS SANTOS A REALESTATE DEVELOPER HAVE LED TO A STEADY EROSION OF MORAL VALUES AS PEOPLE BEGIN TO MOVE INTO GRAY AREAS WHERE THEY CLASSIFY THINGS AS ONLY MARGINALLY ILLEGAL THE RESULT SOME SAY IS A BREAKDOWN IN SOCIETAL NORMS THIS IS A COUNTRY WITHOUT A MORAL CONSCIENCE SAYS GERMAN SANCHEZ RUIPEREZ WHO OWNS GRUPO ANAYA SA SPAIN'S LEADING EDUCATIONAL PUBLISHER WE NEED TO GO THROUGH THE SAME CLEANSING PROCESS AS ITALY BITTERNESS OVER BANESTO'S DOWNFALL IS ALL THE SHARPER BECAUSE OF THE HOPES MR CONDE RAISED WHEN HE CAME TO THE BANK IN DECEMBER 1987 WITH HIS ELOQUENT RHETORIC THE YOUTHFUL FORMER LAWYER SEEMED TO EMBODY A WAVE OF REJUVENATION IN SPANISH SOCIETY TOGETHER WITH THE HEIR TO A FAMILY BUSINESS FOR WHICH HE ONCE WORKED MR CONDE HAD JUST PULLED OFF A FINANCIAL COUP BY GAINING CONTROL OF ANTIBIOTICOS SA AND SELLING THE PHARMACEUTICALS COMPANY TO ITALY'S MONTEDISON SPA THEY INVESTED THEIR PROFITS IN BANESTO JUST AS IT BECAME THE TARGET OF SPAIN'S FIRST MAJOR HOSTILE TAKEOVER BID FROM A SMALLER RIVAL BANCO DE BILBAO PROMISING AN OVERHAUL MR CONDE HELPED BANESTO FIGHT OFF THE OFFER LONG DOMINATED BY AN OLIGARCHY OF FAMILY SHAREHOLDERS AND WEAKENED BY A SERIES OF FINANCIAL CRISES BANESTO WAS RIPE FOR CHANGE ITS STAFF WAS UNDERTRAINED ITS MANAGEMENT AGING AND ITS TECHNOLOGY RUDIMENTARY AIDED BY MATINEEIDOL GOOD LOOKS A BRILLIANT MIND AND SKILLFUL PUBLIC RELATIONS THE NEW BANESTO CHAIRMAN WAS SOON BASKING IN ADMIRATION NEWSPAPERS AND MAGAZINES HONORED HIM AS BUSINESSMAN AND BANKER OF THE YEAR HIS YACHT WAS MAGNIFICENT AND HIS NEWLY ACQUIRED COUNTRY ESTATE LUXURIOUS SWOONING MATRONS SAW HIM AS THE SONINLAW OF THEIR DREAMS WOULDBE YUPPIES IDOLIZED HIM I WANT TO BE MARIO CONDE JINGLED A POP SONG AT THE TIME A FLIRTATION WITH SPAIN'S RIGHTWING OPPOSITION PROMPTED SPECULATION THAT HE MIGHT ENTER POLITICS HEDGING HIS BETS HOWEVER HE SIMULTANEOUSLY BUILT BRIDGES WITH PRIME MINISTER FELIPE GONZALEZ'S SOCIALIST PARTY HE APPOINTED TO BANESTO'S BOARD A SOCIALIST WHO HAD RUN A STATEOWNED ELECTRIC UTILITY BUT HAD NO EXPERIENCE IN BANKING HIRED AS AN ADVISER A CONSERVATIVE LEGISLATOR WHO WAS FRIENDLY WITH ALFONSO GUERRA THE LEADER OF THE SOCIALISTS' LEFT WING AND NAMED ANOTHER SOCIALIST'S WIFE TO HEAD THE BANK'S CULTURAL FOUNDATION TO WIN FAVORABLE PUBLICITY AND SOME BELIEVE STIFLE ANY CRITICISM MR CONDE BEGAN INVESTING IN THE MEDIA FIRST WITH HIS OWN MONEY AND THEN BANESTO'S FOR A WHILE HE WAS A SHAREHOLDER IN EL INDEPENDIENTE A WEEKLY NEWSPAPER AFTER IT FOLDED BANESTO TOOK A STAKE IN EL MUNDO A MADRID DAILY THE BANK ALSO BOUGHT A 249 STAKE IN ANTENA 3 DE TELEVISION SA AND 125 OF GRUPO ZETA A MAGAZINE AND NEWSPAPER PUBLISHER ACCORDING TO MR JIMENEZ LOSANTOS MR CONDE USED THESE INVESTMENTS TO INFLUENCE COVERAGE THE WRITER SAYS FOR EXAMPLE THAT SOME MONTHS AFTER BANESTO FIRST BECAME A SHAREHOLDER IN 1991 ANTENA 3 TV SWITCHED FROM HAWKISH CRITICISM OF THE SOCIALISTS TO BLAND COVERAGE MORE FAVORABLE TO MR GONZALEZ AND HIS GOVERNMENT MR JIMENEZ LOSANTOS WHO ALSO WAS A POLITICAL COMMENTATOR FOR THE TV STATION WAS FIRED SO WERE SEVERAL COLLEAGUES DESPITE BANESTO'S FLASHY PUBLICITY CAMPAIGNS THE BANK WASN'T AS STRONG AS IT SEEMED NEITHER MR CONDE NOR THE TEAM HE BROUGHT WITH HIM FROM ANTIBIOTICOS HAD MUCH BANKING EXPERIENCE BETWEEN 1988 AND 1992 THE BANK LAVISHED 837 MILLION ON REMODELING BRANCHES AND ON A NEW COMPUTER SYSTEM AS REGULATORS DISCOVERED LATER HOWEVER IT FAILED TO INSTALL CONTROLS TO KEEP TABS ON ITS BURGEONING LOAN PORTFOLIO TO INSTILL NEW DRIVE AMONG STAFFERS IN ITS 2300 BRANCHES IT ABOLISHED RULES REQUIRING THEM TO SEEK HIGHERLEVEL AUTHORIZATION FOR MANY LOANS ACCORDING TO FORMER BANESTO EXECUTIVES IT ALSO FAILED TO TRAIN THEM IN ASSESSING CLIENTS' CREDITWORTHINESS WHEN SPAIN SLIPPED INTO RECESSION IN LATE 1992 BANESTO'S LOAN PORTFOLIO SOURED LAST MONTH A MEMBER OF THE BANK'S NEW BOARD SAID MANY OF ITS LARGE LOANS AND APPROXIMATELY 20 OF ITS SMALL ONES THOSE BELOW 177000 WERE NONPERFORMING OR SUBSTANDARD AT THE SAME TIME BANESTO HAD CHARGED INTO A COSTLY INTERESTRATE WAR WITH OTHER SPANISH BANKS FOR DEPOSITS AND ITS OPERATING MARGINS ERODED JUST AS IT WAS RUNNING INTO OTHER PROBLEMS DATING FROM BEFORE MR CONDE'S ARRIVAL THE BANK CONTROLLED AN INSURANCE COMPANY LA UNION & EL FENIX ESPANOL SA AND AN ARRAY OF INDUSTRIAL COMPANIES RANGING FROM OIL TO MINING CONCERNS MANY OF THEM WERE ALSO BIG BORROWERS FROM BANESTO THOSE LINKS HAD POSED NO PROBLEM IN SPAIN'S ONCE LAXLY REGULATED BUSINESS ENVIRONMENT BUT THEY SUDDENLY THREATENED TO CONTRAVENE A NEW EC DIRECTIVE ON BANKING PRACTICES WORRIED ABOUT BANESTO'S CORE BANKING BUSINESS AND THE RISKS TO DEPOSITORS FROM ITS NONBANKING VENTURES THE BANK OF SPAIN PRESSURED MR CONDE TO REDUCE THESE HOLDINGS EVER INVENTIVE HE PLANNED TO MERGE BANESTO'S NONBANKING OPERATIONS UNDER THE UMBRELLA OF A NEW 100OWNED HOLDING COMPANY CORPORACION INDUSTRIAL Y FINANCIERA DE BANESTO OR LA CORPORACION IN PLACE OF HISTORIC BOOK VALUES FOR ITS SHAREHOLDINGS BANESTO WOULD BE ABLE TO BOLSTER ITS BALANCE SHEET BY RESTATING THEIR VALUES TO REFLECT HIGHER MARKET PRICES AT THE TIME TO RAISE ADDITIONAL CAPITAL THE HOLDING COMPANY WOULD SELL NEW SHARES BUT JUST AS HE WAS READY TO LAUNCH THE STOCK OFFERING IN 1990 IRAQ INVADED KUWAIT AND STOCK MARKETS PLUNGED THE PLANNED OFFERING HAD TO BE POSTPONED SO BANESTO RESORTED TO INCREASINGLY COMPLICATED MANEUVERS TO BOLSTER ITS FINANCES IN THE SERIES OF TRANSACTIONS SOME WERE BARGAINS FOR THE BUYERS OTHERS BENEFITED BANESTO AT THE EXPENSE OF ITS PARTNERS FORMER EXECUTIVES SAY IN A COMPLEX 1991 TRANSACTION FOR EXAMPLE ASSURANCES GENERALES DE FRANCE PAID 425 MILLION FOR A 2 STAKE IN BANESTO AND 337 OF LA CORPORACION PLUS STAKES IN JOINT VENTURES THAT GAVE AGF AN INDIRECT 23 IN BANESTO'S LA UNION & EL FENIX AND SALES OUTLETS FOR ITS OWN INSURANCE PRODUCTS THROUGH BANESTO BRANCHES THE FRENCH INSURER LATER CONCLUDED THAT LA UNION HAD INADEQUATE PROVISIONS FOR POTENTIAL CLAIMS HOPING TO SALVAGE ITS INVESTMENT AGF RECENTLY AGREED TO ACQUIRE MAJORITY CONTROL OF LA UNION BUT IT HAS LOST A FEW FEATHERS IN AN OPERATION THAT PROVED MUCH MORE COSTLY THAN EXPECTED AN AGF OFFICIAL ADMITS MEANWHILE ACCORDING TO FORMER EXECUTIVES MR CONDE WAS DIRECTING TRANSACTIONS INVOLVING THE BANK IN WAYS THAT WHILE PERHAPS NOT ILLEGAL RAISE QUESTIONS ABOUT CONFLICTS OF INTEREST ACCORDING TO ONE FORMER EXECUTIVE OF BANESTO MR CONDE MIXED HIS OWN AND HIS ASSOCIATES' BUSINESS INTERESTS WITH THOSE OF THE BANK IN THE CONTEXT OF ASSET SALES BY BANESTO BETWEEN 1989 AND 1991 THIS EXECUTIVE SAYS UP TO 5 OF THE VALUE OF SOME TRANSACTIONS WAS PAID IN THE FORM OF COMMISSIONS TO LAW FIRMS AND ADVISERS CLOSE TO MR CONDE ONE DEAL THAT HAS COME UNDER PUBLIC SCRUTINY IS THE SALE OF THE MAJORCA BEACH DEVELOPMENT BY BANESTO UNITS TO MR RICH AND HIS GROUP THE DEVELOPMENT WAS ACQUIRED BY TWO DUTCH INVESTMENT COMPANIES WHOSE INVESTORS INCLUDED MR RICH WITH THE UNDERSTANDING THAT LOCAL ADMINISTRATIVE REQUIREMENTS HAD BEEN MET THE ARBITRATORS AWARDED THE BUYERS THEIR CLAIM FOR THE RETURN OF THE PURCHASE PRICE BANESTO IS APPEALING THE DECISION MR RICH DIDN'T RESPOND TO REQUESTS FOR COMMENT EVEN MORE BIZARRE WAS THE 135 MILLION SALE OF BANESTO'S 11STORY MADRID HEADQUARTERS AND NINE BRANCH BUILDINGS SELLING REAL ESTATE IS A COMMON CORPORATE MOVE TO FREE UP CASH FOR BETTER USE THE COMPANIES LEASE THE OFFICE SPACE BACK IN THIS CASE HOWEVER THE BUYER WAS LATER FOUND TO BE A COMPANY THAT HAD BORROWED MONEY FROM BANESTO TO FINANCE THE PURCHASE AND THE BANK RENTED BACK THE BUILDINGS AT ABOUT TRIPLE MARKET RATES ACCORDING TO THE BANK'S NEW MANAGEMENT THIS MANEUVER ENABLED BANESTO TO DISGUISE SOME OF ITS PROBLEMS WITH PROFITS FROM A ONETIME CAPITAL GAIN THAT'S BECAUSE THE BUILDINGS WERE SOLD AT A PRICE HIGHER THAN THE VALUE STATED ON BANESTO'S BOOKS BUT OVER THE NEXT EIGHT YEARS ACCORDING TO A MEMBER OF THE BANK'S NEW MANAGEMENT TEAM BANESTO UNDERTOOK TO PAY HIGHENOUGH RENT TO COVER THE PURCHASER'S INTEREST PAYMENTS ON THE LOAN AND REPAYMENT OF THE LOAN ITSELF IN EFFECT WIPING OUT THE CAPITAL GAIN BY 1992 THE BANK OF SPAIN WAS VOICING MISGIVINGS ABOUT BANESTO WHOSE PROVISIONS FOR FUTURE PENSION OBLIGATIONS WERE DEEMED INSUFFICIENT BY THE CENTRAL BANK AND WHOSE LOAN PORTFOLIO WAS DETERIORATING AS THE RECESSION INFLICTED MORE LOAN LOSSES AND DEPRESSED FOREIGNERS' INTEREST IN BUYING SPANISH COMPANIES RUMORS OF SERIOUS DIFFICULTIES AT BANESTO BEGAN SPREADING THE CONSERVATIVE BANCO POPULAR STOPPED LENDING TO BANESTO IN THE INTERBANK MARKET OTHERS ATTRACTED IN SOME CASES BY HIGH INTEREST RATES CONTINUED TO LEND MONEY TO BANESTO ALTHOUGH AT ONE POINT THE BANK OF SPAIN HAD TO PROVIDE IT WITH EMERGENCY LIQUIDITY CALLING IN MR CONDE THE CENTRAL BANK SET SPECIFIC TARGETS FOR THE FUTURE ALLOCATION OF BANESTO'S EARNINGS TO PROVISIONS FOR BAD LOANS AND ITS PENSION FUND AND THE CENTRAL BANK BEGAN SCRUTINIZING BANESTO'S LOAN PORTFOLIO JUST AS THINGS SEEMED AT THEIR DARKEST BANESTO'S CHAIRMAN PULLED OFF ANOTHER COUP HIRING JP MORGAN AS ADVISER MR CONDE ANNOUNCED A MAJOR PLAN TO RAISE MORE CAPITAL AND THAT CALMED FINANCIAL MARKETS AS PART OF THE PLAN MORE THAN 40 INSTITUTIONAL AND PRIVATE INVESTORS JOINED JP MORGAN LAST SUMMER IN TAKING A 79 STAKE IN BANESTO THROUGH A MORGANPROMOTED INVESTMENT FUND ALSO LAST SUMMER THE US CENTRAL CREDIT UNION WHICH PROVIDES FINANCIAL SERVICES FOR SOME 13000 US CREDIT UNIONS DEPOSITED 255 MILLION IN UNINSURED ACCOUNTS AT BANESTO SPANISH GOVERNMENT OFFICIALS SAID HOWEVER THAT THE MONEY WOULD BE FULLY REPAID IN DECEMBER THE BUBBLE FINALLY BURST AFTER ANOTHER BANK OF SPAIN INSPECTION FOUND BANESTO'S LOAN PORTFOLIO IN WORSE STATE THAN PREVIOUSLY FEARED MR CONDE AND JP MORGAN WERE STILL TRYING TO COBBLE TOGETHER ANOTHER CAPITALRAISING EXERCISE HOWEVER IN CONVERSATIONS WITH THE BANK OF SPAIN ACCORDING TO SPANISH OFFICIALS JP MORGAN CONCEDED THAT IT COULDN'T GUARANTEE SUCCESS A SPOKESMAN FOR MORGAN DECLINES TO COMMENT ON ITS ROLE FACED WITH HEAVY SELLING OF BANESTO SHARES AND FEARS OF A RUN ON DEPOSITS THE BANK OF SPAIN INTERVENED IT DISMISSED MR CONDE AND HIS BOARD INCLUDING ROBERTO MENDOZA A JP MORGAN VICE CHAIRMAN AND APPOINTED A NEW MANAGEMENT TEAM HEADED BY ALFREDO SAENZ A VICE CHAIRMAN OF THE GIANT BANCO BILBAO VIZCAYA THE BANK OF SPAIN HAS PROPOSED A BAILOUT IN AN EFFORT TO REMOVE THE RISK OF A CRISIS HITTING THE COUNTRY'S ENTIRE BANKING SYSTEM AND TO REASSURE SMALL INVESTORS BOTH MR CONDE WHO FINANCED HIS PARTICIPATION IN THE RECENT BANESTO CAPITAL INCREASE WITH A 50 MILLION LOAN FROM ANOTHER BANK AND OTHER INVESTORS INCLUDING JP MORGAN'S CORSAIR PARTNERSHIP LP HAVE SUFFERED A SHARP DROP IN THE VALUE OF THEIR SHARES WHEN TRADING WAS RESUMED ON THE MADRID STOCK EXCHANGE TUESDAY AFTER A FIVEWEEK SUSPENSION BANESTO SHARES PLUNGED 57 FROM ENDOFDECEMBER LEVELS YESTERDAY THEY ROSE 15 PESETAS OR 18 TO A CLOSE OF 870 PESETAS A MORGAN SPOKESMAN DECLINES TO COMMENT ON THE SHARE PRICES BUT MORGAN HAS SAID IN THE PAST THAT IT REGARDS CORSAIR'S HOLDING IN BANESTO AS A LONGTERM INVESTMENT LOOKING ON THE POSITIVE SIDE SOME SPANIARDS VIEW MR CONDE'S PROBLEMS AS EVIDENCE OF THE END OF THE GETRICHQUICK FEVER OF THE 1980S AND AS AN IMPORTANT STEP IN THE MODERNIZATION OF SPANISH SOCIETY BUT CHANGE IS LIKELY TO BE GRADUAL THE BANK OF SPAIN HAS OPENED PROCEEDINGS THAT COULD LEAD TO DISCIPLINARY ACTION AGAINST MR CONDE AND OTHER MEMBERS OF BANESTO'S FORMER BOARD IN RELATION TO SUCH POSSIBLE IRREGULARITIES AS FAILING TO ENSURE BANESTO'S COMPLIANCE WITH CAPITALADEQUACY RULES AT WORST HOWEVER THEY WOULD BE FINED ONLY 10 MILLION PESETAS ABOUT 71000 AND BANNED FROM ACTING AS BANK EXECUTIVES FOR 10 YEARS FEW SPANIARDS EXPECT ANY MORE DRASTIC SANCTIONS TO BEFALL BANESTO'S FORMER CHAIRMAN EVEN IF MR CONDE IS FOUND TO HAVE VIOLATED THE LAW MR JIMENEZ LOSANTOS PREDICTS NOTHING WILL HAPPEN TO CONDE TAXPAYERS WILL HAVE TO PAY FOR HIS YACHT AND HIS FORTUNE 9402030083 940203 LETTERS TO THE EDITOR OUR ROBOTS COMPETE IN A DYNAMIC MARKET IN YOUR NOV 26 PAGEONE ARTICLE CURRENCY WAVES GLOBAL MONEY TRENDS RATTLE SHOP WINDOWS IN HEARTLAND AMERICA YOU DISCUSS HOW THE YEN HAS AFFECTED HOBART BROTHERS CO UNFORTUNATELY YOU USE HOBART AND MOTOMAN INC INTERCHANGEABLY MOTOMAN IS A JOINTVENTURE ROBOT COMPANY WHOSE MARKET IS THE AMERICAS NORTH AND SOUTH WE HAVE HAD A RECORD 1993 WITH MORE THAN 38 MILLION IN BOOKINGS AND 33 MILLION IN REVENUE REFLECTING A 45 COMPOUNDED GROWTH SINCE OUR FORMATION FOUR AND A HALF YEARS AGO OUR PROFITS ARE ALSO STRONG YOUR ARTICLE CLAIMS THAT DUE TO THE IMPACT OF THE YEN AND THE FLUCTUATIONS OF THE SWEDISH KRONA THAT MOTOMAN SHED OUR SWEDISH ROBOTICS BUSINESS ACTUALLY MOTOMAN HAS NOTHING TO DO WITH EUROPE AND IT WAS HOBART WHO SOLD ITS INTEREST IN THE SWEDISH ROBOTICS COMPANY TO OUR OTHER PARENT YASKAWA ELECTRIC CORP THE WORLD'S LEADING MANUFACTURER OF INDUSTRIAL ROBOTS THE BOTTOM LINE IN YOUR ARTICLE APPEARS TO BE THAT THE IMPACT OF THE YEN IS NEGATIVELY CHANGING THE LANDSCAPE OF HEARTLAND AMERICA THAT DEALS WITH THE JAPANESE THOUGH THIS WOULD BE THE LOGICAL CONCLUSION TO DRAW IN REALITY THE COMPANIES THAT DEAL WITH THE JAPANESE ARE FOCUSING ON CUSTOMER SATISFACTION AGGRESSIVE COSTREDUCTION PROGRAMS AND DYNAMIC PRODUCT AND CURRENCY STRATEGIES RESULTING IN INCREASED SUCCESS IN SPITE OF THE DOLLAR'S WEAKNESS 9402030082 940203 INTERNATIONAL JAPAN READIES STIMULUS PACKAGE THREATENING SPLIT IN GOVERNMENT PLAN TOTALING 138 BILLION IS OPPOSED BY SOCIALISTS IN HOSOKAWA'S COALITION BY QUENTIN HARDY AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S GOVERNMENT IS PUTTING THE FINISHING TOUCHES ON A MASSIVE PACKAGE OF TAX CUTS AND OTHER MEASURES TO SPUR ITS SLUMBERING ECONOMY BUT THE POLITICAL COSTS MAY PROVE PROHIBITIVE MOREOVER WHILE THE PLAN MAY KEEP THE ECONOMY FROM DETERIORATING IT PROBABLY WON'T SPARE JAPAN THE KIND OF PAINFULLY LONG AND ANEMIC RECOVERY THAT THE US RECENTLY ENDURED EARLY THURSDAY MORNING PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED THE FIRST PART OF THE STIMULUS PACKAGE A CUT IN INCOME TAXES AND OTHER RELATED LEVIES VALUED AT ROUGHLY SIX TRILLION YEN 556 BILLION MR HOSOKAWA ADDED THAT THE GOVERNMENT WORRIED ABOUT BALANCING THE BOOKS WOULD MAKE UP FOR LOST REVENUE BY BOOSTING THE CURRENT 3 CONSUMPTION TAX TO 7 APPARENTLY TO APPEASE THE DISSENTING SOCIALISTS THE TAX WILL BE RENAMED THE WELFARE TAX NEVERTHELESS THE DE FACTO TAX INCREASE DREW IMMEDIATE FIRE FROM THE LARGEST BLOC IN MR HOSOKAWA'S FRAGILE COALITION THE SOCIALISTS WHO THREATENED TO ABANDON THE ALLIANCE AS A RESULT IT WILL BE DIFFICULT FOR US TO CONTINUE TO COOPERATE WITH THE COALITION SAID TOMIICHI MURAYAMA THE SOCIALIST PARTY CHAIRMAN AT A 2 AM NEWS CONFERENCE HE SAID THE PARTY MAY DECIDE WITHIN 24 HOURS WHETHER TO PULL ITS SIX MEMBERS OUT OF MR HOSOKAWA'S CABINET MR MURAYAMA ALSO THREATENED TO TRY TO BLOCK MR HOSOKAWA'S STIMULUS PLAN WHEN IT COMES UP FOR PARLIAMENTARY DEBATE IN THE NEXT FEW WEEKS IT ISN'T CLEAR HOW A SOCIALIST DEFECTION WOULD AFFECT MR HOSOKAWA'S ABILITY TO GOVERN POLITICAL ANALYSTS HAVE SPECULATED MR HOSOKAWA'S ALLIANCE COULD SURVIVE FOR SOME TIME AS A MINORITY GOVERNMENT BUT WOULD BECOME MORE DEPENDENT ON COOPERATION FROM THE CONSERVATIVE OPPOSITION THE FULL PACKAGE WHICH MAY BE RELEASED THURSDAY IS EXPECTED TO TOTAL ABOUT 15 TRILLION YEN 138 BILLION MORE THAN ANY OF THE THREE PREVIOUS STIMULUS PACKAGES JAPAN HAS RELEASED IN THE PAST 17 MONTHS BY COMPLEMENTING THE CONVENTIONAL PUBLICWORKS SPENDING WITH INCOME TAX CUTS AS WELL AS DEREGULATION THIS ECONOMIC STIMULUS PACKAGE PUTS THE BURDEN ON JAPAN'S CONSUMERS NOT ITS BUREAUCRATS TO GET THE ECONOMY GOING BUT WHILE ANY PACKAGE COMES AS A RELIEF LARGELY BECAUSE LONGEXPECTED ECONOMIC MEASURES HAVE BEEN DELAYED BY POLITICAL TURMOIL AND SPLITS OVER HOW TO FINANCE TAX CUTS ECONOMISTS DON'T HAVE HIGH HOPES FOR AN IMMEDIATE TURNAROUND THE PROBLEMS GO SO MUCH DEEPER THAN A SHOT OF STIMULUS CAN FIX SAID DONALD KIMBALL ECONOMIST AT MITSUBISHI BANK LTD THE ONLY OUT IS TIME ECONOMISTS THINK THE TAX CUTS WILL HELP YET THEY WARN AGAINST TOO MUCH ENTHUSIASM DESPITE THE 30 TRILLION YEN TOTAL FOR THE PREVIOUS PACKAGES MOST ANALYSTS THINK THE FOURTH QUARTER DURING WHICH INDUSTRIAL PRODUCTION FELL AT AN ESTIMATED 139 ANNUALIZED RATE MAY HAVE BEEN THE WORST YET IN JAPAN'S LONG ECONOMIC SLUMP THE TAX CUT IS HARDLY THE START OF AN ECONOMIC REVOLUTION FOR ONE THING THE CUTS PROBABLY WON'T KICK IN UNTIL MIDYEAR AT THE EARLIEST MOREOVER THEY WILL BE OFFSET EVENTUALLY BY THE NEW WELFARE TAX A REFLECTION OF THE POWER OF THE FISCALLY CONSERVATIVE MINISTRY OF FINANCE WHICH OPPOSES DEFICIT SPENDING ECONOMISTS ALSO ARE SKEPTICAL HOW MUCH CONSUMERS WOULD SPEND RIGHT AWAY AND HOW MUCH THEY WOULD SAVE TAX RELIEF SHOULD HAVE A POSITIVE PSYCHOLOGICAL EFFECT ON THE AVERAGE PERSON IN JAPAN WHERE THE TOP TAX RATE IS ABOUT 65 THE TOP US FEDERAL RATE IS UNDER 40 IT TAKES SOME OF THE BURDEN OFF US SALARYMEN SAID YOSHIKAZU MIYABE A 65YEAROLD EXECUTIVE BUT HE DOUBTS HE'LL SPEND MUCH OF HIS WINDFALL I DON'T HAVE ANY ROOM TO PUT NEW THINGS BECAUSE OF JAPAN'S NOTORIOUSLY SMALL HOMES MOST ANALYSTS SEE THE JAPANESE ECONOMY BOUNCING ALONG THE BOTTOM OVER THE NEXT SIX MONTHS REGISTERING LITTLE OR NO GROWTH THEY SEE A GRADUAL PICKUP ONCE CONSUMERS START TO SPEND AND BUSINESSES RESOLVE THEIR INVENTORY OVERHANGS AND RESUME INVESTMENT CONSENSUS ECONOMICS LONDON PUTS GROWTH AT JUST 02 THIS YEAR AND 15 IN 1995 THAT ADDS UP TO THE SORT OF SLOWGROWTH RECOVERY THAT UNTIL RECENTLY FRAYED NERVES IN THE US ROBERT FELDMAN CHIEF ECONOMIST AT SALOMON BROTHERS ASIA LTD SEES AN ANNUALIZED 01 RATE OF GROWTH IN THE FIRST HALF OF 1994 AND A 19 RATE IN THE SECOND HALF THE BIGGEST OBSTACLE TO RECOVERY IS THAT SOME OF JAPAN'S ECONOMIC PROBLEMS ARE BEYOND THE REACH OF STIMULUS PACKAGES TAKE FOR EXAMPLE THE RESURGENT YEN THE YEN HAS RISEN TO ABOUT 108 TO THE DOLLAR FROM 112 IN THE PAST THREE WEEKS PARTLY OUT OF FEAR THAT TRADE FRICTIONS MAY AGAIN PROMPT US OFFICIALS TO TALK UP THE JAPANESE CURRENCY SINCE THAT MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS THAT COULD WOUND THIS EXPORTDRIVEN ECONOMY MOREOVER THE PACKAGE WOULDN'T ATTACK SOME OF THE STRUCTURAL PROBLEMS IN THE ECONOMY THERE'S A HUGE AMOUNT OF OVERCAPACITY IN THE MANUFACTURING SECTOR A RESULT OF EXCESS CAPITAL SPENDING IN THE LATE 1980S AUTO EXECUTIVES SAY JAPAN HAS TWO MILLION CARS' WORTH OF IDLE FACTORY CAPACITY A SITUATION THAT'S LIKELY TO WORSEN AS JAPANESE AUTO MAKERS SHIFT PRODUCTION OVERSEAS TO COPE WITH THE HIGH YEN EXCESS CAPACITY ALSO MEANS EXCESS LABOR IN JAPAN WHERE IT'S STILL HARD TO LAY OFF WORKERS EVEN LOW ESTIMATES SAY JAPAN HAS ABOUT ONE MILLION REDUNDANT WORKERS STILL ON PAYROLLS 9402030081 940203 LETTERS TO THE EDITOR IS ENDANGERED' SNAIL REALLY AN ILLEGAL ALIEN IN CASE ANYONE IS STILL INTERESTED IN THE KANAB AMBERSNAIL DEC 27 EDITORIAL AND JAN 13 LETTER HERE'S A STORY THAT MIGHT ADD SOME PERSPECTIVE MY 96YEAROLD UNCLE GR DOC AIKEN IS A LONGTIME RESIDENT OF KANAB UTAH HE SERVED FOR MANY YEARS AS THE TOWN'S ONLY PHYSICIAN AND WAS ALSO MAYOR AND REPRESENTATIVE TO THE UTAH LEGISLATURE LAST JUNE WHEN I TOLD HIM ABOUT THE REPORTS OF THE ENDANGERED AMBERSNAIL HE EXCLAIMED MY GOD I HOPE THOSE AREN'T THE SNAILS NITA AND I TOOK TO THE PONDS IT SEEMS THAT BACK IN THE LATE 1930S DOC'S WIFE NITA ORDERED SOME WATERLILIES FROM CHINA TO DECORATE THE POND BEHIND THE HOSPITAL WHEN THE LILIES ARRIVED THEY WERE INFESTED WITH DOZENS OF SMALL YELLOWISH SNAILS RATHER THAN KILL THEM DOC TOOK THEM TO SOME PONDS NORTH OF TOWN AND RELEASED THEM THINKING NOTHING MORE ABOUT IT UNTIL LAST JUNE COULD IT BE THAT THE ENDANGERED AMBERSNAIL IS ACTUALLY A FOREIGN INVADER WITH LOTS OF RELATIVES BACK HOME 9402030080 940203 LETTERS TO THE EDITOR AMOROUS PERSISTENCE OR CRIMINAL STALKING IN RESPONSE TO YOUR JAN 17 EDITORIAL SWARTHMORE'S CONFUSED CORRECTNESS MALES SHOULD KNOW THAT CRUDE AMOROUS PERSISTENCE IS INAPPROPRIATE AND WILL NOT BE TOLERATED WHERE DO YOU DRAW THE LINE BETWEEN CRUDE PERSISTENCE AND CRIMINAL STALKING THAT LINE REMAINS UNCLEAR UNTIL A WOMAN HAS BEEN ATTACKED IT IS BETTER TO ERR IN THE DIRECTION OF BEING OVERPROTECTIVE BASED ON YOUR EDITORIAL I SUPPORT THE SWARTHMORE DECISION TO DISMISS THE INTIMIDATING STUDENT I DOUBT THAT THE FEMALE STUDENT WOULD HAVE GONE THROUGH THE ORDEAL OF PURSUING PROTECTION FROM THE SCHOOL ADMINISTRATION IF SHE DID NOT FEEL SERIOUSLY THREATENED I DOUBT THAT THE SCHOOL WOULD HAVE TAKEN THIS ACTION IF IT DID NOT BELIEVE THAT THERE WAS REASON TO DO SO 9402030079 940203 A QUESTION OF INDEPENDENCE THE FOLLOWING IS EXCERPTED FROM AN EXCHANGE TUESDAY AT THE SENATE BANKING COMMITTEE CONFIRMATION HEARINGS OF THE NOMINEE TO CHAIR THE FEDERAL DEPOSIT INSURANCE CORP RICKI TIGERT SEN LAUCH FAIRCLOTH R NC I HAD THE OPPORTUNITY LAST WEEK TO VISIT WITH MS TIGERT VERY BRIEFLY BUT THERE ARE A LOT OF ISSUES THAT ARE GOING TO BE CONFRONTING THE FDIC IN THE NEXT FEW YEARS BUT SINCE THERE HAVE BEEN NO HEARINGS ON THE WHITEWATER FIASCO I WANTED TO TALK TO MISS TIGERT TODAY ABOUT MADISON GUARANTY SAVINGS & LOAN AND UNLESS AND UNTIL CONGRESS HOLDS HEARINGS FORUMS SUCH AS THIS ARE ABOUT THE ONLY OPPORTUNITY WE HAVE TO ASK THE QUESTIONS THE AMERICAN PEOPLE WANT ANSWERED IF YOU WOULD TEND TO AS SHORT AN ANSWER AS POSSIBLE MS TIGERT I WOULD APPRECIATE IT RICKI TIGERT OF COURSE SENATOR FAIRCLOTH IN LOOKING AT THE NEWS STORIES PUBLISHED I SEE YOU ARE A PERSONAL FRIEND AND I DID NOT KNOW THIS IN THE MEETING THE OTHER DAY OF PRESIDENT AND MRS CLINTON I SEE IN TIME MAGAZINE JAN 17 EDITION ONE OF MRS CLINTON'S STATEMENTS WAS THAT HER FAVORITE ACTIVITY AT RENAISSANCE WEEKEND WAS HANGING OUT WITH RICKI TIGERT THAT WAS HER FAVORITE ACTIVITY IS IT ACCURATE TO SAY THAT YOU ARE A PERSONAL FRIEND OF BOTH MRS CLINTON AND PRESIDENT CLINTON TIGERT I'VE KNOWN THE PRESIDENT AND MRS CLINTON FOR EIGHT YEARS AND I RESPECT AND ADMIRE BOTH OF THEM SENATOR FAIRCLOTH DID YOU KNOW ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL TIGERT I'VE NEVER MET MR HUBBELL FAIRCLOTH DID YOU EVER MEET VINCE FOSTER TIGERT I'VE NEVER MET I DID NOT MEET MR FOSTER FAIRCLOTH WERE THESE BOTH NOT ATTENDANTS AT RENAISSANCE WEEKEND TIGERT TO MY KNOWLEDGE THEY NEVER ATTENDED FAIRCLOTH THE FDIC HAS AN ONGOING INVESTIGATION INTO THE MILLIONS OF DOLLARS THAT MADISON GUARANTY LOST THAT THE TAXPAYERS PICKED UP VERY BRIEFLY WHAT IS THE STATUS OF THE INVESTIGATION AND WHAT HAVE YOU LEARNED ABOUT THE INVOLVEMENT OF WEBSTER HUBBELL AND THE ROSE LAW FIRM TIGERT SENATOR I KNOW NOTHING ABOUT THIS MATTER OTHER THAN WHAT I'VE READ IN THE NEWSPAPER I CONSIDER MYSELF TO BE A PRIVATE CITIZEN UNTIL AND IF I AM CONFIRMED BY THE US SENATE FAIRCLOTH IF YOU ARE CONFIRMED YOU ARE GOING TO BE HEAD OF WHAT IS SUPPOSED TO BE AN INDEPENDENT AGENCY YOU ARE ALSO A VERY CLOSE FRIEND OF THE CLINTONS AND MANY OTHERS WHO ARE IMPLICATED IN THE WHITEWATER SCANDAL NOW EVERY OTHER FRIEND OF THE CLINTONS THAT HAS BEEN APPOINTED TO GOVERNMENT HAS BEEN DISCOURAGING CONGRESSIONAL INVESTIGATIONS INTO THE WHITEWATER AND MADISON SAVINGS & LOAN SCANDALS MS RENO WAS HERE NOV 7 AND I ASKED HER VERY STRAIGHTFORWARD TO APPOINT AN INDEPENDENT INVESTIGATOR TO TAKE A LOOK AT IT SHE WAS QUITE ADAMANT IN HER STATEMENT THAT SHE WAS HANDLING IT SHE WOULD DECIDE WHEN TO APPOINT AN INVESTIGATOR AND THAT THE BUCK STOPPED WITH HER I WAS REALLY IMPRESSED BY WHAT SHE HAD TO SAY BUT I FIND OUT THREE MONTHS OR TWO AND A HALF MONTHS LATER THAT SHE DECIDES THAT SHE NEEDS TO APPOINT AN INVESTIGATOR WHEN THE INVESTIGATEES IE PRESIDENT CLINTON AND MS CLINTON SAY IT IS FINE TO APPOINT SOMEBODY TO INVESTIGATE US SHE NEVER MOVED UNTIL THE PRESIDENT SAID YES IT LOOKS LIKE NOW WE BETTER APPOINT AN INVESTIGATOR AND UP SHE COMES WITH AN INVESTIGATOR IS THAT THE KIND OF INDEPENDENCE WE CAN EXPECT FROM YOU OR WILL THERE BE ANOTHER KIND TIGERT SENATOR I'VE SPENT MOST OF MY CAREER IN PUBLIC SERVICE IN NONPOLITICAL JOBS I SPENT SEVEN OF THOSE YEARS AT THE FEDERAL RESERVE I KNOW WHAT INDEPENDENCE IS I'VE SERVED AT AN INDEPENDENT AGENCY I BELIEVE IN THE CREDIBILITY OF THE REGULATORY PROCESS AND I THINK IT IS ESSENTIAL THAT THE FDIC CONTINUE ITS STRONG HISTORY OF INDEPENDENCE AND IF I'M CONFIRMED BY THE SENATE I CAN ASSURE YOU THAT THE FDIC WILL BE INDEPENDENT FAIRCLOTH WELL DOESN'T IT PRESENT AN ALMOST IMPOSSIBLE SITUATION WHEN THIS VERY VERY CLOSE FRIENDSHIP WITH MRS CLINTON SHE SAYS SHE ENJOYS HANGING OUT WITH YOU DOESN'T THAT PRESENT ALMOST AN IMPOSSIBLE SITUATION THAT HERE YOU ARE INVESTIGATING AND IN CHARGE OF ANY POSSIBLE CRIMINAL VIOLATIONS AND CERTAINLY EXTREME EMBARRASSMENT OF YOUR FAVORITE HANGING OUT FRIEND AND SHE BEING THE FIRST LADY THAT WOULD PRESENT A PROBLEM TO ME TIGERT SENATOR WITH RESPECT TO ANY ISSUE THAT COMES BEFORE THE FDIC DURING MY TENURE IF I AM CONFIRMED BY THE US SENATE I WILL BE EXTREMELY SENSITIVE TO ISSUES OF POTENTIAL CONFLICTS OF INTEREST OR ANY APPEARANCE OF CONFLICT OF INTEREST AS I'VE INDICATED I KNOW NOTHING ABOUT THIS MATTER OTHER THAN READING A FEW NEWSPAPER ARTICLES BUT I AM ABSOLUTELY COMMITTED TO ASSURING THE CREDIBILITY OF EVERY REGULATORY UNDERTAKING OF THE FDIC SHOULD AN OCCASION ARISE WITH RESPECT TO ANY ISSUE WHERE THE ISSUE OF AN APPEARANCE OF CONFLICT OF INTEREST COULD COME UP I WILL CONSULT WITH THE ETHICS OFFICIALS OF THE FDIC AND WITH THE OFFICE OF GOVERNMENT ETHICS AND TAKE THE APPROPRIATE STEPS FAIRCLOTH WELL DON'T WE ALMOST GO IN WITH AN INEVITABLE CONFLICT WHEN YOUR CLOSEST PERSONAL FRIEND YOU ARE RESPONSIBLE FOR INVESTIGATING WOULDN'T YOU ALMOST HAVE TO WITHDRAW BEFORE YOU SEN ALFONSE D'AMATO R NY WOULD THE SENATOR YIELD FOR A POINT ON THAT FAIRCLOTH I WILL D'AMATO MISS TIGERT LET ME ASK YOU THIS IF INDEED YOU FOUND YOURSELF IN A SITUATION WHERE YOU ARE CONFIRMED AND YOU HAVE AN ONGOING INVESTIGATION AND IT MIGHT POSSIBLY INVOLVE THE PRESIDENT OR MRS CLINTON WOULD YOU RECUSE YOURSELF TIGERT AS I'VE INDICATED SENATOR WITH RESPECT TO ANY MATTER WHERE THERE IS AN APPEARANCE OF CONFLICT OF INTEREST AFTER CONSULTATION WITH THE APPROPRIATE ETHICS OFFICIALS I WILL TAKE THE NECESSARY STEPS TO ASSURE THE CREDIBILITY OF THE REGULATORY AND ENFORCEMENT PROCESS D'AMATO I THINK WHAT SEN FAIRCLOTH IS REALLY COMING TO IS THAT IT WOULD BE AND WOULD APPEAR TO BE EXTREMELY DIFFICULT IF NOT IMPOSSIBLE AS IT RELATES TO ANY ACTIONS THAT THE FDIC MIGHT HAVE TO TAKE OR DECIDE TO TAKE ONE WAY OR THE OTHER THAT YOU WOULD BE IN A POSITION IN A JUST ABSOLUTELY UNTENABLE POSITION IF YOU WERE A PERSON WHO HAD TO MAKE THAT DECISION I BELIEVE THAT WHAT WE ARE GETTING TO IS HOW WOULD YOU HANDLE THAT WOULD YOU RECUSE YOURSELF AND I DON'T THINK YOU'D HAVE TO LOOK TO ETHICS PEOPLE I THINK ANYBODY MIGHT TELL YOU THAT YOU MIGHT WANT SOME TIME TO THINK ABOUT THIS BUT IT WOULD SEEM THAT A RECUSAL WOULD BE MOST OBVIOUS IN THIS KIND OF SITUATION IN ANYTHING IN ANY DEALINGS WITH WHITEWATER OR WITH THE POSSIBLE REVIEW OR WITH BRINGING ANY ACTIONS AS IT RELATES TO MADISON ETC YOU WOULD BE IN THIS POSITION AND ANYONE ELSE IN YOUR POSITION WOULD DO THE SAME GOOD FAITH WOULD PROBABLY REQUIRE YOU TO RECUSE YOURSELF I COULDN'T SEE HOW YOU COULD GET AROUND THIS I DO NOT MEAN TO BE ARGUMENTATIVE OR TO PUT YOU ON THE SPOT I'M TRYING TO HELP YOU OUT TIGERT I APPRECIATE THAT SEN D'AMATO FAIRCLOTH FROM WHAT MRS CLINTON HAS SAID AND FROM WHAT YOU SAID YOU ARE TALKING ABOUT AVOIDING A CONFLICT AND IF I HAVE ANY SENSITIVITY AS TO WHERE WE ARE HEADED IT IS AS STRAIGHT INTO ONE AS YOU CAN GO BECAUSE FROM EVERYTHING WE HAVE READ AND I CERTAINLY HAVE NO KNOWLEDGE OTHER THAN WHAT I HAVE READ IN EVERY PUBLICATION OUT THAT THERE IS AN INVESTIGATION OF WHITEWATER ROSE LAW FIRM MADISON SAVINGS & LOAN MANY ASPECTS OF IT INVOLVE MRS CLINTON AND PRESIDENT CLINTON NOW THE FDIC IS IN THE MIDDLE OF THE INVESTIGATION AND THE INVESTIGATION INVOLVES YOUR TWO CLOSEST PERSONAL FRIENDS WHAT ARE YOU GOING TO ASK SOMEBODY THE ETHICS COMMITTEE WHAT ARE YOU GOING TO ASK THEM ARE THEY REALLY YOUR CLOSE PERSONAL FRIENDS I DON'T EVEN SEE IT SEEMS INEVITABLE D'AMATO I DON'T THINK IT'S ABOVE QUESTION AND I THINK WHAT WE'RE ATTEMPTING TO GET FROM YOU STRAIGHT UP OR DOWN WILL YOU RECUSE YOURSELF IN ANY MATTER AS IT RELATES TO MADISON AND WHITEWATER SEN DONALD RIEGLE D MICH AS I HEAR YOUR ANSWER WHAT YOU'VE SAID IS THAT YOU DON'T KNOW ANYTHING BEYOND WHAT YOU'VE SEEN IN THE NEWSPAPERS YOU'RE ABOUT TO ASSUME THIS JOB IF CONFIRMED AND THAT IF YOU FIND THAT IN THE COURSE OF THE WAY THAT ISSUE IS BEING HANDLED WITHIN THE FDIC OR FOR THAT MATTER ANYTHING ELSE BUT SPECIFICALLY ON THIS ONE IF YOU FIND ANYTHING THAT SUGGESTS TO YOU ANY CONFLICT OR APPEARANCE OF CONFLICT YOU'LL ACT ON THAT YOU'LL TALK TO THE ETHICS OFFICIALS AND YOU'LL TAKE WHATEVER STEPS ARE APPROPRIATE 9402030078 940203 LETTERS TO THE EDITOR SHULTZ'S TESTIMONY FORMER SECRETARY OF STATE SHULTZ IN HIS JAN 28 LETTER TO THE EDITOR IN RESPONSE TO MY JAN 24 EDITORIAL PAGE ARTICLE SAYS I WAS WRONG TO SAY THAT SPECIAL PROSECUTOR LAWRENCE WALSH HAD REPORTED THAT MR SHULTZ HAD ADMITTED FALSE TESTIMONY HERE IS WHAT MR WALSH WROTE P 373 OF HIS FINAL REPORT READERS MAY JUDGE FOR THEMSELVES IF I WAS WRONG 9402030077 940203 TRADERS SAY VIACOM'S BID HAS AN EDGE OVER QVC'S IN CONTEST FOR PARAMOUNT BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL TAKEOVERSTOCK TRADERS SAID VIACOM INC HAS A CLEAR BUT NARROW EDGE OVER RIVAL BIDDER QVC NETWORK INC AFTER TUESDAY'S FINAL ROUND OF BIDDING FOR ENTERTAINMENT AND PUBLISHING COMPANY PARAMOUNT COMMUNICATIONS INC REFLECTING TRADERS' VIEW THAT QVC HAS THE INFERIOR BID QVC STOCK SURGED YESTERDAY ENDING AT 47 A SHARE UP 225 ON THE NASDAQ STOCK MARKET VIACOM CLASS B SHARES SAGGED 625 CENTS A SHARE TO 3350 ON THE AMERICAN STOCK EXCHANGE BECAUSE THE WINNING BIDDER FOR PARAMOUNT WILL ISSUE MILLIONS OF NEW SHARES AND TAKE ON DEBT SHARES OF THE PERCEIVED LEADING BIDDER USUALLY FALL WHILE THE TRAILING BIDDER'S STOCK RISES TUESDAY'S FINAL BIDS CLIMAXED AN EPIC TAKEOVER BATTLE FOR ONE OF THE LAST REMAINING INDEPENDENT ENTERTAINMENT COMPANIES PARAMOUNT HAS BEEN SWEPT UP IN A FRENZY OF DEMAND FOR PROGRAMMING AMONG CABLETV PUBLISHING AND TELECOMMUNICATIONS COMPANIES ALL JOCKEYING FOR POSITION IN THE MULTIMEDIA FUTURE RICHARD H SCHNEIDER A TAKEOVERSTOCK TRADER SAID I THINK IT IS VERY CLEAR THAT VIACOM HAS COME UP WITH REAL QUANTIFIABLE VALUE TO THE PARAMOUNT SHAREHOLDERS AND ABSENT SOME STRONG TURN OF EVENTS MY FEELING IS THAT VIACOM WILL BE THE PARAMOUNT VICTOR BUT THE HIGHER MARKET VALUE OF QVC'S CASHANDSTOCK OFFER CONTINUED TO CONFUSE SOME INVESTORS DURING TRADING YESTERDAY AND CLOUDED THE OUTCOME OF THE CONTEST INVESTORS HAVE UNTIL FEB 14 TO CHOOSE BETWEEN THE TWO OFFERS QVC A HOMESHOPPING COMPANY WAS CLEARLY HOPING TO CAPITALIZE ON THE FACT THAT THE MARKET VALUE OF ITS OFFER WHICH NOW TOPS 87 A SHARE OR 104 BILLION FAR EXCEEDS THE ROUGHLY 83ASHARE 10 BILLION VALUE OF VIACOM'S BID EVEN THOUGH MOST TRADERS CONSIDER THOSE DAILY PRICE QUOTES ALMOST MEANINGLESS MEANWHILE PARAMOUNT'S OPERATIONS HAVE SUFFERED EVEN AS THE BIDDING FOR THE COMPANY HAS ESCALATED YESTERDAY PARAMOUNT SURPRISED WALL STREET WITH THE ANNOUNCEMENT THAT IT EXPECTS TO REPORT A LOSS OF ABOUT 35 MILLION TO 40 MILLION OR 29 CENTS TO 33 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MONDAY THAT WOULD COMPARE WITH A LOSS OF 668 MILLION OR 56 CENTS A SHARE A YEAR EARLIER PARAMOUNT SAID IT EXPECTS TO REPORT AN 18 MILLION LOSS FROM CABLE CHANNEL USA NETWORK WHICH IT OWNS JOINTLY WITH MCA INC PARAMOUNT SAID IT ALSO WILL REPORT A LOSS IN ITS MOVIE OPERATIONS LARGELY BECAUSE OF AN UNEXPECTED WRITEDOWN ON THE FILM ADDAMS FAMILY VALUES ANALYSTS GENERALLY HAD EXPECTED THE COMPANY TO REPORT A PROFIT IN THE QUARTER THIS IS ANOTHER INDICATION OF THE VOLATILITY AND RISKINESS OF THIS BUSINESS SAID ED HATCH AN ANALYST AT UBS SECURITIES QVC OR VIACOM WILL HAVE THEIR WORK CUT OUT FOR THEM IN TURNING PARAMOUNT AROUND PARAMOUNT SHARES SLUMPED 1875 A SHARE TO 78 ON THE NEW YORK STOCK EXCHANGE REFLECTING DISAPPOINTMENT AMONG INVESTORS WHO HAD BEEN HOPING FOR HUGE LASTMINUTE INCREASES IN ONE OR BOTH OF THE OFFERS AS WELL AS CONCERN ABOUT PARAMOUNT'S RESULTS BOTH QVC AND VIACOM HAD BEEN INFORMED OF THE EXPECTED LOSS MEANWHILE SOME TRADERS WHO BEGAN THE DAY CALLING VIACOM A CABLETV PROGRAMMER THE SURE WINNER WERE LESS CERTAIN BY MIDAFTERNOON BASED ON REPORTS THAT QVC MIGHT TAKE NEW STEPS TO GET BACK INTO THE CONTEST PEOPLE IN THE QVC CAMP UNWILLING TO CONCEDE DEFEAT WERE SAID TO BE WEIGHING AT THE VERY LEAST A PUBLICRELATIONS CAMPAIGN TO PROMOTE QVC STOCK IN THE TWO WEEKS LEADING UP TO FEB 14 WITH VIACOM AHEAD IN THE VIEW OF MANY OF THE SHORTTERM TRADERS WHO OWN ROUGHLY HALF THE STOCK QVC HOPES TO WIN SUPPORT AMONG LONGERTERM INSTITUTIONAL INVESTORS BY STRESSING ITS BUSINESS PROSPECTS OVER VIACOM'S MUCH WILL DEPEND ON QVC'S PERSUASIVENESS OVER THE NEXT TWO WEEKS AND THE SUPPORT THE STOCK WILL RECEIVE FROM BELLSOUTH AND OTHERS SAID MR HATCH LISBETH BARRON AN ANALYST AT SG WARBURG & CO ADDED IF YOU'RE A TRADER YOU DON'T HAVE ANY CHOICE BUT TO GO TO VIACOM BUT SHE SAID INVESTORS WITH ANY TYPE OF LONGERTERM PERSPECTIVE MAY FAVOR QVC PARTLY BECAUSE IT WOULD BUY PARAMOUNT WITH LESS DEBT THERE WAS ALSO SPECULATION THAT QVC OR ONE OF ITS CORPORATE ALLIES MIGHT ACT TO IMPROVE THE QVC BID BY ANNOUNCING A PLAN TO ACQUIRE QVC SHARES WHICH COULD BOLSTER THE STOCK COMPONENT OF QVC'S BID BUT SUCH A MOVE MIGHT DRAW A LEGAL CHALLENGE BECAUSE BOTH COMPANIES AGREED NOT TO MAKE CHANGES IN THEIR OFFERS AFTER FEB 1 UNDER BIDDING PROCEDURES SET UP SIX WEEKS AGO BY PARAMOUNT AND ANY COORDINATED QVC SHAREBUYING PLAN COULD BE INTERPRETED AS A CHANGED BID CHARLES LEEDS A PARTNER AT OMEGA ADVISERS INC A HEDGE FUND THAT OWNS MORE THAN FOUR MILLION PARAMOUNT SHARES SAID HE BELIEVES THE VIACOM BID IS CLEARLY SUPERIOR TO QVC'S BY A MARGIN OF ABOUT 2 A PARAMOUNT SHARE TRADERS SAID VIACOM'S STOCK WAS TRADING ON A BASIS THAT INCLUDES THE DILUTIVE EFFECTS OF ISSUING STOCK TO FINANCE THE ACQUISITION WHILE QVC'S STOCK WAS TRADING WITHOUT SUCH DILUTIVE EFFECTS ONE TRADER WITH A LARGE PARAMOUNT POSITION ASSUMES THAT QVC STOCK WOULD TRADE AT 35 A SHARE IF QVC WON THE CONTEST 12 BELOW ITS CURRENT MARKET VALUE BUT THAT VIACOM B SHARES WOULD ONLY TRADE 150 A SHARE BELOW THE CURRENT MARKET PRICE IF VIACOM WON ON THAT BASIS THIS TRADER VALUES THE QVC BID AT 7930 A SHARE OR 95 BILLION COMPARED WITH 8105 A SHARE OR 97 BILLION FOR VIACOM ANOTHER TRADER NOTED THAT QVC'S BID INCLUDES 34 BILLION IN COMMON STOCK COMPARED WITH ONLY 19 BILLION FOR VIACOM BUT THAT VIACOM'S STOCK COMPONENT IS PROTECTED WITH A SECURITY DESIGNED TO PROVIDE VALUE IF VIACOM STOCK DOESN'T RISE OVER THE NEXT FEW YEARS PARAMOUNT ADVISERS CLEARLY CONCERNED THAT THE BIDDING PROCESS RESULTED IN SUCH DISAPPOINTING BIDS WHILE THE COMPANY'S FUNDAMENTALS ARE DETRIORATING WERE ALSO MAPPING PLANS TO END THE PROCESS EVEN IF NEITHER BIDDER GAINS 501 OF PARAMOUNT STOCK BY FEB 14 ONE PLAN UNDER CONSIDERATION IF NEITHER BIDDER GAINED THE REQUIRED MAJORITY WAS FOR THE PARAMOUNT BOARD TO DROP THE COMPANY'S POISONPILL TAKEOVER DEFENSE FOR WHICHEVER BIDDER RECEIVED MORE SHARES UNDER ITS TENDER OFFER THE BOARD WHICH ENDORSED VIACOM'S LAST BID ON JAN 21 IS EXPECTED TO HOLD TO THAT VIEW AT A MEETING TOMORROW MEANWHILE A PERSON IN THE VIACOM CAMP SAID THAT PARAMOUNT'S DISAPPOINTING EARNINGS ESTIMATE DOESN'T CHANGE THE WAY VIACOM LOOKS AT THE VALUE OF THE ASSET QVC HAD NO COMMENT ANALYSTS WERE PARTICULARLY SURPRISED BY THE RESULTS AT USA NETWORK LONG CONSIDERED ONE OF THE INDUSTRY'S MOST SUCCESSFUL CABLE CHANNELS BUT THE COMPANY APPARENTLY OVERPAID FOR PROGRAMMING THAT DIDN'T GENERATE EXPECTED RATINGS AND ADVERTISING DOLLARS PARAMOUNT SAID USA EXPECTS TO RECORD A 78 MILLION PRETAX CHARGE FOR THE YEAR ENDED DEC 31 TO ADJUST THE VALUE OF RIGHTS TO THE PROGRAMMING LAURA LANDRO CONTRIBUTED TO THIS ARTICLE 9402030076 940203 BUSINESS BRIEFS KN ENERGY INC'S GASRESERVES DEVELOPMENT UNITS PURCHASED A SUBSTANTIAL PORTION OF THE GAS RESERVES AND PRODUCTION PROPERTIES OF FUEL RESOURCES DEVELOPMENT CO A UNIT OF PUBLIC SERVICE CO OF COLORADO TERMS WEREN'T DISCLOSED NORTH AMERICAN TECHNOLOGIES GROUP SIGNED A LETTER OF INTENT TO BUILD A PETROLEUMUPGRADING TEST FACILITY FOR ESG PETROLEUM LTD IN ALBERTA GLOBAL CASINOS INC DALLAS ENTERED A JOINT VENTURE TO OPEN A CASINO IN DOWNTOWN MINSK THE CAPITAL OF BELARUS THE PARTNER WASN'T IDENTIFIED AND TERMS WEREN'T DISCLOSED JASON INC MILWAUKEE COMPLETED THE ACQUISITION OF CLOSELY HELD DELTAK CORP A MAKER OF AUTOMOTIVE AND INDUSTRIAL PARTS FOR ABOUT 30 MILLION 9402030075 940203 A NEW WAY TO GOVERN BANKS BY L WILLIAM SEIDMAN THE COURAGEOUS AND PERHAPS OVERLY OPTIMISTIC CLINTON ADMINISTRATION MEANS TO REINVENT GOVERNMENT IN THE AREA OF BANK REGULATION IT PROPOSES TO CONSOLIDATE THE FOUR BANK AND THRIFT REGULATORY AUTHORITIES INTO ONE INDEPENDENT FEDERAL REGULATORY AGENCY THIS NEW UNIFIED AGENCY WOULD BE GOVERNED BY A FIVE MEMBER BOARD ONE MEMBER FROM THE TREASURY DEPARTMENT ONE FROM THE FEDERAL RESERVE AND THREE INDEPENDENT MEMBERS APPOINTED BY THE PRESIDENT CONFIRMED BY THE SENATE AND MOST IMPORTANT REMOVABLE ONLY FOR CAUSE TODAY AS A RESULT OF HISTORICAL ACCIDENT THE FEDERAL DEPOSIT INSURANCE CORP THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL RESERVE SYSTEM EACH HAVE A PIECE OF THE FEDERAL REGULATORY ACTION THIS BUREAUCRATIC GANG WARFARE CREATES A HIGHCOST SYSTEM RIFE WITH DUPLICATION AND DELAY AND CAN FROM TIME TO TIME COME CLOSE TO DESTROYING EFFECTIVE AND EFFICIENT BANK SUPERVISION WHEN THESE AGENCIES DISAGREE NOT THE PRESIDENT OR THE POPE CAN FORCE THEM TO AGREE THERE IS NO PLACE TO GET A FINAL DECISION ON IMPORTANT ISSUES LIKE HOW MUCH CAPITAL BANKS MUST HAVE TO BE SAFE AND SOUND UNDER THE ADMINISTRATION'S NEW PLAN THE TWO AGENCIES WITH PURE REGULATORY POWERS OTS AND OCC WILL GO OUT OF BUSINESS WHILE THE TWO OTHER AGENCIES WILL BE STRIPPED OF SUPERVISORY DUTIES THE FDIC WOULD CONTINUE TO BE AN INDEPENDENT INSURER AND THE FEDERAL RESERVE WOULD CONTINUE TO INDEPENDENTLY DETERMINE MONETARY POLICY WHO WOULD OPPOSE SUCH A SIMPLE AND LOGICAL PLAN TO IMPROVE THE WAY THE GOVERNMENT GOVERNS THE BANKING INDUSTRY THE ANSWER IS NO SURPRISE THE PRIMARY OPPOSITION COMES FROM THE FEDERAL RESERVE SYSTEM WHICH STANDS TO LOSE THE MOST ADDITIONAL OPPOSITION WILL COME FROM STATE BANK REGULATORS AND THEIR COMMUNITY BANK FRIENDS BECAUSE THEY FEAR NEEDLESSLY I BELIEVE THAT THE STATE AND FEDERAL DUAL BANKING SYSTEM MAY EVENTUALLY BE JEOPARDIZED BY THE REGULATORY WEIGHT OF A SINGLE GIANT FEDERAL AGENCY BUT IN THE END THE FEDERAL RESERVE HOLDS THE KEY TO WHETHER THE ADMINISTRATION'S PLAN SUCCEEDS OR FAILS AND THE FED HAS GONE ALL OUT TO PRESERVE ITS POWERS TO REGULATE HERE'S WHAT OFFICIALS AT THE FED HAVE SAID IN A SERIES OF UNPRECEDENTED OPED ATTACKS ON THE PRESIDENT'S PLAN IF REGULATORY AUTHORITY IS VESTED IN A SINGLE AGENCY AND LITTLE IN THE CENTRAL BANK OUR NATION'S ABILITY TO RESPOND EFFICIENTLY AND EFFECTIVELY TO A CRISIS WOULD SURELY BE IMPAIRED FROM WILLIAM MCDONOUGH PRESIDENT OF THE FEDERAL RESERVE BANK NEW YORK LET US EXAMINE THESE CLAIMS ON THE CHARITABLE ASSUMPTION THAT THEY HAVE ONLY A MINIMAL RELATIONSHIP TO THE OLD POLITICAL ADAGE THAT WHERE YOU SIT IS WHERE YOU STAND MR GREENSPAN'S STATEMENT TO THE EFFECT THAT SOUND MONETARY POLICY REQUIRES SUPERVISORY AUTHORITY HAS NOT BEEN SUPPORTED BY THE EXPERIENCE OF OTHER CENTRAL BANKS PARTICULARLY THE GERMAN BUNDESBANK WHICH MANY CONSIDER THE PREEMINENT MONETARY OPERATOR IN EUROPE AND PERHAPS THE WORLD THE BUNDESBANK HAS NO REGULATORY DUTIES NOR DO ABOUT TWOTHIRDS OF THE CENTRAL BANKS IN THE COUNTRIES OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FURTHER WHILE THE BANK OF ENGLAND HAS SUCH AUTHORITY MANY FEEL IT IS UNDESIRABLE BECAUSE THERE IS OFTEN A CONFLICT OF DUTY BETWEEN THE REGULATOR AND THE MONETARY AUTHORITY THERE IS AN OBVIOUS EXAMPLE OF SUCH A CONFLICT WHEN MONETARY POLICY CALLS FOR AN EXPANSION OF BANK CREDIT FOR ECONOMIC EXPANSION BUT REGULATORY RESPONSIBILITY MANDATES RESTRICTION OF LENDING DEEMED TO BE RISKY NOTE THE RECENT CALL IN THE US BY BOTH THE BUSH AND CLINTON ADMINISTRATIONS FOR REGULATORS TO LET UP ON BANKS SO THAT MORE LENDING CAN EXPAND THE ECONOMY WHILE AT THE SAME TIME REGULATORS ARE STILL WORRIED ABOUT THE EFFECTS OF THE BANKING MISTAKES OF THE 1980S WHAT ABOUT THE ARGUMENT THAT THE FED WOULD BE UNABLE TO HANDLE A CRISIS IN THE SYSTEM WITHOUT SUPERVISORY AND REGULATORY AUTHORITY IT IS SAID THAT IT IS TOO RISKY TO COUNT ON EXAMINATION REPORTS PREPARED BY OTHERS BUT UNDER THE ADMINISTRATION'S PROPOSAL THE FEDERAL RESERVE WILL BE PART OF THE REGULATORY AUTHORITY AS A BOARD MEMBER AND NO DOUBT MOST OF ITS CURRENT EXAMINERS WILL TRANSFER TO AND WORK FOR THE NEW CONSOLIDATED AGENCY FURTHER ALL INFORMATION RELATED TO THE ENTIRE BANKING INDUSTRY BY LAW WILL BE INSTANTLY AVAILABLE IN ONE PLACE ON A FULLY COORDINATED BASIS FOR THE FED'S USE SUCH INFORMATION IS NOT AVAILABLE TO THE FED OR ANYONE ELSE TODAY THE NEW SYSTEM WILL PROVIDE BETTER MORE CURRENT AND COMPREHENSIVE INFORMATION ON THE BANKING SYSTEM THAN IS AVAILABLE IN GOVERNMENT TODAY SINCE THE FED NOW SUPERVISES ONLY A SMALL PERCENTAGE OF BANKING ASSETS LESS THAN 20 ITS INFORMATION BASE WILL BE IMPROVED BY A FACTOR OF FIVE FED OFFICIALS WILL BE ABLE TO TALK TO REGULATORY PERSONNEL FOR AS LONG AND IN AS MUCH DETAIL AS THEY DESIRE WITH REGARD TO THE ARGUMENT THAT TWO OR MORE REGULATORS ARE NECESSARY AS CHECKS AND BALANCES DO WE NEED TWO SECS OR TWO FCCS FOR BALANCE OR TO PROVIDE REGULATORY SHOPPING THE ANSWER IS NO CLEARLY NO ONE WOULD EVEN SUGGEST SUCH A THING AS A FORMER FDIC CHAIRMAN AND FORMER CHAIRMAN OF A FEDERAL RESERVE BANK BRANCH I HAVE HAD THE UNUSUAL OPPORTUNITY TO OBSERVE OUR PRESENT REGULATORY SITUATION FROM BOTH SIDES OF THE FENCE BASED ON MY EXPERIENCE IT IS CLEAR TO ME THAT FOR THE GOOD OF THE COUNTRY'S FINANCIAL SYSTEM THE ADMINISTRATION'S PROPOSED PLAN SHOULD BE SUPPORTED WHAT IS NEEDED IS A PLACE TO GET A UNIFORM RAPID AND FINAL DECISION ON IMPORTANT REGULATORY ISSUES NEITHER THE PRESENT SYSTEM NOR A PROPOSED TWOREGULATOR SYSTEM RECENTLY TOSSED OUT BY THE FED WILL PROVIDE THIS ESSENTIAL INGREDIENT OF ANY REAL BANKING REGULATORY REFORM MY FORMER COLLEAGUES AT THE FED AND IN THE FDIC WILL NO DOUBT FEEL THAT MY JUDGMENT HAS BECOME IMPAIRED SINCE I SERVED THESE TWO FINE INSTITUTIONS BUT I BELIEVE IT REALLY MAY HAVE BEEN IMPROVED BY A VIEW NOT COLORED BY BEING PART OF THE PROBLEM MR SEIDMAN WHO WAS HEAD OF THE FDIC FROM 1985 TO 1991 IS CHAIRMAN OF COMMAC INC A FINANCIAL SERVICES COMPANY