NEW YORK A RECOVERY IN THE BOND MARKET CLEARED THE WAY FOR ANOTHER RECORDSETTING DAY ON WALL STREET AFTER A ONEDAY SLIDE THE DOW JONES INDUSTRIAL AVERAGE BOUNCED BACK GAINING 1153 OR 029 TO 397554 LESS THAN THREE POINTS FROM ITS ALLTIME HIGH OF 397836 AND BACK WITHIN STRIKING DISTANCE OF 4000 BROADBASED INDEXES WERE EVEN STRONGER SETTING HIGHS IN MANY CASES ADVANCING ISSUES OUTPACED DECLINERS ABOUT 1279 TO 851 ON THE NEW YORK STOCK EXCHANGE VOLUME THERE CLIMBED TO ABOUT 328770000 SHARES FROM 322440000 TUESDAY THE AVERAGE PRICE PER SHARE ROSE 17 CENTS THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 238 OR 050 TO 48200 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 127 OR 048 TO 26771 AND THE DOW JONES EQUITY MARKET INDEX ADDED 207 OR 046 TO 45627 ALL THREE CLOSED AT RECORD LEVELS THE NASDAQ COMPOSITE INDEX CLIMBED 233 OR 029 TO 79957 LESS THAN A POINT FROM ITS ALLTIME HIGH THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADVANCED 190 OR 039 TO 48789 A THIRD STRAIGHT RECORD ECONOMICALLY SENSITIVE STOCKS AMONG THE STRONGEST MARKET SEGMENTS FOR WEEKS WERE JOINED IN THE LEADERSHIP POSITION YESTERDAY BY OILRELATED ISSUES BIG GAINERS INCLUDED UNION CARBIDE WHICH ROSE 1 1/8 TO 25 3/4 TEXACO WHICH RALLIED 1 1/4 TO 67 3/4 AND BAKER HUGHES WHICH JUMPED 1 1/4 TO 21 1/4 SEARS ROEBUCK TUMBLED 2 1/2 TO 51 1/4 AS 69 MILLION OF ITS SHARES CHANGED HANDS LEADING BIG BOARD VOLUME PRUDENTIAL SECURITIES DOWNGRADED THE BIG CHICAGO RETAILER TO HOLD FROM BUY AMGEN NASDAQ SLUMPED 3 TO 44 AFTER THE COMPANY TOLD ANALYSTS THAT SALES GROWTH FOR ITS NEUPOGEN DRUG LIKELY WILL EASE THIS YEAR RUMORS ABOUT A SLOWDOWN HAVE BATTERED THE STOCK ALL WEEK THE THOUSAND OAKS CALIF COMPANY'S STOCK ENDED AT 49 3/4 ON FRIDAY THE DRUG IS USED TO CONTROL INFECTIONS IN PATIENTS UNDERGOING CANCER CHEMOTHERAPY PARAMOUNT COMMUNICATIONS LOST 1 7/8 TO 78 SOME INVESTORS WERE SAID TO BE DISAPPOINTED THAT VIACOM AND QVC NETWORK WEREN'T MORE AGGRESSIVE LATE TUESDAY WHEN THEY SWEETENED THEIR BIDS FOR THE NEW YORK MEDIA COMPANY ALTHOUGH THE TWO OFFERS CARRY ROUGHLY THE SAME VALUE INVESTORS YESTERDAY GAVE VIACOM AN EDGE IN THE TAKEOVER BATTLE CITING PROVISIONS IN ITS PROPOSAL THAT PROTECT INVESTORS FROM A POTENTIAL SLIDE IN ITS STOCK PRICE VIACOM'S CLASS B STOCK AMEX LOST 5/8 TO 33 1/2 QVC NASDAQ ADDED 2 TO 46 3/4 BLOCKBUSTER ENTERTAINMENT WHICH IS BACKING VIACOM LOST 3/4 TO 26 7/8 BELLSOUTH WHICH IS AIDING QVC DROPPED 3/4 TO 59 POLAROID DROPPED 1 3/8 TO 33 5/8 ALTHOUGH THE CAMBRIDGE MASS CAMERA MAKER REPORTED STRONG FOURTHQUARTER EARNINGS TUESDAY ANALYSTS YESTERDAY CAUTIONED THAT THE COMPANY'S EARNINGS COULD BE DEPRESSED EARLY THIS YEAR EMPRESAS LA MODERNA JUMPED TO 35 3/4 IN ITS FIRST DAY OF TRADING ON VOLUME OF 42 MILLION SHARES THE BIG MEXICAN CIGARETTE PRODUCER HAD AN INITIAL OFFERING OF 53 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 3253 APIECE SPRINT ADDED 1 5/8 TO 37 1/8 THE KANSAS CITY MO TELEPHONE SERVICE PROVIDER REPORTED FOURTHQUARTER EARNINGS OF 55 CENTS A SHARE COMPARED WITH INCOME FROM OPERATIONS OF 34 CENTS A YEAR EARLIER GENERAL ELECTRIC SHARES INCREASED 2 1/4 TO 109 1/8 OFFICIALS OF THE DIVERSIFIED FAIRFIELD CONN COMPANY COULDN'T ACCOUNT FOR THE RISE SHARES OF PRECIOUS METALS PRODUCERS EASED AFTER SURGING TUESDAY AMERICAN BARRICK FELL 1 TO 27 5/8 HOMESTAKE MINING DROPPED 1 3/8 TO 21 7/8 NEWMONT MINING DECLINED 1 TO 54 1/2 AND ECHO BAY MINES AMEX SLIPPED 3/8 TO 13 3/8 USF&G ROSE 1 1/2 TO 15 3/8 THE BALTIMORE INSURANCE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 55 CENTS A SHARE UP FROM 1 CENT A YEAR EARLIER THE LATEST PERIOD INCLUDED A GAIN FROM A TAX BENEFIT FLIGHTSAFETY CLIMBED 4 1/2 TO 39 1/4 THE NEW YORK COMPANY WHICH PROVIDES TRAINING TO PILOTS HAD A PROFIT OF 61 CENTS A SHARE IN THE FOURTH QUARTER UP FROM 52 CENTS A YEAR EARLIER ANALYSTS SAID INVESTORS IN PART WERE ENCOURAGED BY THE MARKET'S RELATIVELY MINOR LOSSES IN THE FACE OF BAD NEWS TUESDAY INCLUDING THE BOND SLUMP AND A JUMP IN COMMODITIES PRICES THE DOW WAS OFF JUST 1435 YESTERDAY AFTER SURGING 70 POINTS IN THE PREVIOUS THREE TRADING DAYS I THINK INVESTORS CAME IN WITH SOME CONFIDENCE YESTERDAY THAT THE REAL TREND IN STOCKS IS UP SAID RICHARD SCARLATTA A NEWSLETTER EDITOR AT SUTTON FINANCIAL SERVICES IN CHICAGO MANY BIG INVESTORS STILL HAVE MONEY TO SPEND SAID RICKY HARRINGTON A TECHNICAL ANALYST AT INTERSTATEJOHNSON LANE INFLOWS TO EQUITY MUTUAL FUNDS WERE AT A RECORD LEVEL IN DECEMBER AND FUND EXECUTIVES HAVE PROJECTED PERHAPS EVEN LARGER INFLOWS FOR JANUARY 9402030073 940203 VALIANT BRITONS STRUGGLE TO STOP MENACE OF MANYHEADED BODIES BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THESE DAYS EVIL WOULD SEEM TO BE ROOTED IN QUANGOS PEERS ATTACK QUANGO CULTURE BLARED ONE RECENT HEADLINE HERE REDWOOD ACCUSED IN QUANGO SCANDAL SAID ANOTHER A DAILY TELEGRAPH ARTICLE ON THE DIFFICULTY OF KILLING QUANGOS LIKENED THEM TO THE HYDRA YOU CUT OFF THE HEAD OF ONE AND ANOTHER NINE GROW IN ITS PLACE INDEED THE NATION ABOUNDS WITH WARNINGS OF QUANGO PROLIFERATION QUANGOS ACRONYM FOR QUASIAUTONOMOUS NONGOVERNMENTAL ORGANIZATIONS ARE PUBLIC BODIES CHARGED WITH OVERSIGHT OR IMPLEMENTATION OF A PARTICULAR ASSIGNMENT NATIONWIDE THERE ARE AN ESTIMATED 1500 OF THEM THE SENSE THAT THEIR NUMBERS ARE GROWING NO ONE REALLY KNOWS FOR SURE IS PROMPTING MANY TO CALL FOR THE RETURN TO PARLIAMENT OF SIR PHILIP HOLLAND AUTHOR OF QUELLING THE QUANGO AND QUANGO QUANGO QUANGO BEFORE RETIRING IN 1987 AS BRITAIN'S GREATESTEVER QUANGO HUNTER HE ELIMINATED MORE THAN 300 OF THEM I DEPLORE THE EXISTENCE OF QUANGOS SAYS SIR PHILIP BUT GOVERNMENT OFFICIALS KEEP CREATING NEW ONES EACH WITH ITS OWN NAME THE HOMEGROWN CEREALS AUTHORITY THE ADVISORY COMMITTEE ON SCOTLAND'S TRAVELLING PEOPLE THE ADVISORY PANEL ON THE IMPORTATION OF SEXUALLY EXPLICIT FILMS FOR HEALTH PURPOSES SUPPORTERS SAY COMMITTEE MEMBERS PERFORM VITAL FUNCTIONS OFTEN FOR LITTLE OR NO PAY IN A HOUSE OF LORDS DEBATE LAST MONTH ON QUANGOS BARONESS MILLER OF HENDON SAID HER WORK ON A FAMILYHEALTH COMMITTEE PAID LESS THAN SHE PAID HER CLEANING LADY YET MANY QUANGO EXECUTIVES RECEIVE MUCH MORE THAN THAT AS MUCH AS 70000 105000 A YEAR IN POSITIONS THAT ARE APPOINTED RATHER THAN ELECTED THE QUANGOCRACY IS A SYSTEM OF POLITICAL PATRONAGE SAYS SIR PHILIP NOTING THAT CERTAIN QUANGURUS AS HE CALLS THEM TEND TO LAND ONE QUANGO JOB AFTER ANOTHER IN HIS NEARLY 20 YEARS IN PARLIAMENT SIR PHILIP KILLED SUCH QUANGOS AS THE LOCATION OF OFFICES BUREAU THE FURNITURE DEVELOPMENT COUNCIL AND THE ADVISORY COMMITTEE ON RHODESIAN TRAVEL RESTRICTIONS BUT HE SAYS HE HAS FAILED TO PERSUADE ANY NEW MEMBER OF PARLIAMENT TO TAKE UP THE CAUSE AND LITTLE WONDER DURING THE RECENT HOUSE OF LORDS DEBATE CRITICS WHEN PRESSED ADMITTED THAT EVEN THEY SERVED ON SOME QUANGOS 9402030072 940203 BUSINESS BRIEF ALLIEDSIGNAL INC PRELIMINARY ACCORD REACHED ON BUYING A UNIT OF AKZO ALLIEDSIGNAL INC SAID IT REACHED A PRELIMINARY AGREEMENT TO BUY THE FLUOROCHEMICALS BUSINESS OF AKZO CHEMICALS BV OF THE NETHERLANDS TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR ALLIEDSIGNAL BASED IN MORRISTOWN NJ SAID SALES OF THE AKZO FLUOROCHEMICALS BUSINESS SHOULD TOTAL ABOUT 18 MILLION IN 1994 AKZO CHEMICALS IS A UNIT OF AKZO NV THE AKZO BUSINESS MAKES HYDROFLUORIC ACID THE KEY RAW MATERIAL IN FLUOROCARBONS USED IN REFRIGERATION AND FOAMINSULATION AMONG OTHER THINGS THE AGREEMENT CALLS FOR ALLIEDSIGNAL TO BUY AKZO'S MANUFACTURING PLANTS IN WEERT THE NETHERLANDS WHICH EMPLOY ABOUT 70 PEOPLE ALLIEDSIGNAL HAS AEROSPACE AUTOMOTIVEPRODUCTS AND ENGINEEREDMATERIALS INTERESTS AKZO'S PRODUCTS INCLUDE CHEMICALS FIBERS COATINGS AND HEALTHCARE PRODUCTS 9402030071 940203 BUSINESS BRIEF PHH CORP EARNINGS GROWTH IS EXPECTED TO SLOW IN FISCAL 2ND HALF PHH CORP EXPECTS SLOWER EARNINGS GROWTH IN THE SECOND HALF OF ITS FISCAL YEAR ENDING APRIL 30 THAN OCCURRED IN THE FIRST HALF BUT NET INCOME FOR THE YEAR WILL RISE TO ABOUT 365 TO 370 A SHARE SAID ROY A MEIERHENRY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN FISCAL 1993 THE VEHICLE LEASING MORTGAGE BANKING AND RELOCATION SERVICES COMPANY EARNED 564 MILLION OR 325 A SHARE ON REVENUE OF 202 BILLION BECAUSE OF A SURGE IN MORTGAGE REFINANCINGS PERSHARE PROFIT FOR THE SIX MONTHS ENDED OCT 31 JUMPED TO 174 FROM 147 A YEAR EARLIER THE HUNT VALLEY MD COMPANY'S MORTGAGE BANKING BUSINESS WILL PRODUCE MOST OF THE EARNINGS GAIN FOR FISCAL 1994 MR MEIERHENRY SAID IN AN INTERVIEW VEHICLE LEASING WILL ALSO HAVE HIGHER EARNINGS HE SAID BUT EARNINGS FROM RELOCATION SERVICES WILL BE FLAT TO DOWN 9402030070 940203 CLINTON CALLING FOR BROAD CUTS IN BUDGET PLAN IMPACT TO BE WIDESPREAD AT LEAST 100 PROGRAMS WOULD BE ELIMINATED BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S NEW BUDGET CALLS FOR DEEP AND CONTROVERSIAL CUTS IN SCORES OF FEDERAL PROGRAMS AND ELIMINATING MORE THAN 100 OTHERS RANGING FROM COAST GUARD BOATSAFETY GRANTS TO THE COMMERCE DEPARTMENT'S NATIONAL UNDERSEA RESEARCH PROGRAM ADMINISTRATION OFFICIALS SAID IN THE BUDGET TO BE RELEASED MONDAY MR CLINTON WILL PROPOSE SHARP CUTS IN NEXT YEAR'S SPENDING FOR PUBLIC HOUSING ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS RURAL ELECTRIFICATION ADMINISTRATION LOAN SUBSIDIES OPERATING SUBSIDIES FOR LOCAL TRANSIT SYSTEMS AND AID TO HELP POOR PEOPLE PAY HEATING BILLS OFFICIALS SAID FORCED BY CONGRESS TO LIVE WITH TIGHT CAPS ON ANNUALLY APPROPRIATED SPENDING MR CLINTON HAD TO IDENTIFY TENS OF BILLIONS OF DOLLARS IN SPENDING CUTS TO MAKE ROOM FOR INCREASED SPENDING ON PRIORITIES SUCH AS THE HEADSTART PROGRAM FOR PRESCHOOLERS WORKER TRAINING HIGHWAY CONSTRUCTION AND PROGRAMS FOR THE HOMELESS CLINTON ADMINISTRATION OFFICIALS ARE NOW CALLING ATTENTION TO SOME OF THE CUTS TO DEMONSTRATE THAT THE PRESIDENT MADE SOME HARD CHOICES THE PRESIDENT WILL ALSO ASK CONGRESS TO RESCIND ABOUT 5 BILLION OR SLIGHTLY LESS THAN 1 OF THE SPENDING IT APPROVED FOR THE CURRENT FISCAL YEAR INCLUDING MONEY FOR LOCAL HIGHWAY PROJECTS THAT REFLECT THE CLOUT OF PARTICULAR CONGRESSMEN AT THE SAME TIME THE PRESIDENT ALREADY HAS ASKED FOR 105 BILLION IN ADDED SPENDING FOR CALIFORNIA EARTHQUAKE VICTIMS AND PENTAGON PEACEKEEPING EFFORTS USING LAST YEAR'S APPROPRIATIONS AS A BASE MR CLINTON'S BUDGET WILL SEEK TO SPEND 448 MILLION OR 74 LESS ON PUBLICHOUSING DEVELOPMENT AND 275 MILLION OR 20 LESS ON WHAT ARE CALLED HOME GRANTS TO STATE AND LOCAL GOVERNMENTS FOR CONSTRUCTION REHABILITATION AND RENTAL ASSISTANCE A PROGRAM MR CLINTON SOUGHT TO INCREASE LAST YEAR THE CUTS ARE SMALLER THAN THOSE INITIALLY CONTEMPLATED BY THE ADMINISTRATION AND DON'T AFFECT BILLIONS OF DOLLARS ALREADY IN THE PIPELINE BUT REFLECT A DECISION THAT PUBLICHOUSING CONSTRUCTION ISN'T ONE OF MR CLINTON'S PRIORITIES MR CLINTON ALSO PROPOSES TO SPEND 51 MILLION OR 70 LESS ON REA LOAN SUBSIDIES 345 MILLION OR 25 LESS ON ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS 85 MILLION OR 70 LESS ON THE NEXT GENERATION WEATHER RADAR PROJECT WHICH IS TO PROVIDE EARLIER WARNINGS OF TORNADOS AND HURRICANES AND 13 MILLION OR 4 LESS ON PUBLIC BROADCASTING ENERGY DEPARTMENT SPENDING TO PRODUCE AND STOCKPILE NUCLEAR MATERIALS ALSO IS SLATED FOR BIG CUTS THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS ANOTHER LOSER IN THE CLINTON BUDGET THE PRESIDENT WILL PROPOSE SPENDING 230 MILLION LESS A SMALL CUT FROM LAST YEAR BUT IF APPROVED BY CONGRESS IT WOULD BE THE FIRST REDUCTION FOR NASA IN 21 YEARS AMONG THE PROGRAMS THAT MR CLINTON WILL SEEK TO TERMINATE ALTOGETHER ARE AID TO PUBLIC SCHOOLS WITH DEPENDENTS OF MILITARY PERSONNEL FOR WHICH CONGRESS APPROPRIATED 123 MILLION LAST YEAR FEDERAL CONTRIBUTIONS TO PERKINS REVOLVING LOAN FUNDS WHICH PROVIDE LOWINTEREST STUDENT LOANS 158 MILLION AND THE ENERGY DEPARTMENT'S ATOMIC VAPOR LASERISOTOPESEPARATION PROGRAM TO DEVELOP NEW TECHNIQUES FOR ENRICHING URANIUM 177 MILLION A PROGRAM DEEMED OBSOLETE BECAUSE SO MUCH RUSSIAN URANIUM IS NOW AVAILABLE MR CLINTON ALSO SEEKS TO CLOSE THE PENTAGON'S MEDICAL SCHOOL A RECOMMENDATION FROM VICE PRESIDENT AL GORE'S REPORT ON REINVENTING GOVERNMENT SMALLER PROGRAMS THAT MR CLINTON WOULD ELIMINATE INCLUDE SMALL BUSINESS ASSOCIATION GRANTS FOR TREE PLANTING THE FEDERAL RAILROAD ADMINISTRATION'S LOCALRAIL FREIGHT ASSISTANCE THE COMMERCE DEPARTMENT'S COLUMBIA RIVER HATCHERIES AND ITS WIND PROFILER DEMONSTRATION NETWORK A 50 MILLION ANNUAL EXPORT SUBSIDY FOR SUNFLOWER AND COTTONSEED OIL AND A PROGRAM THAT PAYS LAW STUDENTS TO WORK IN CLINICS FOR THE POOR THE BUDGET PROJECTS THAT THE NUMBER OF CIVILIAN WORKERS MEASURED IN FULLTIME EQUIVALENTS ON THE FEDERAL PAYROLL WILL BE 118000 LOWER BY SEPT 30 1995 THAN WHEN MR CLINTON TOOK OFFICE THE SAVINGS ARE USED TO COMPLY WITH THE SPENDING CAPS SET BY CONGRESS IN LAST YEAR'S DEFICITREDUCTION LAW MR CLINTON VOWS TO ELIMINATE AN ADDITIONAL 134000 SLOTS BY THE END OF THE DECADE THE BUDGET LAW LIMITS MR CLINTON'S TOTAL REQUEST FOR CONGRESSIONAL APPROPRIATIONS BOTH FOR DEFENSE AND NONDEFENSE PROGRAMS TO 517 BILLION FOR FISCAL 1995 WHICH BEGINS OCT 1 OR ROUGHLY THE SAME AS IN 1994 THE LAW NO LONGER SETS SEPARATE FLOORS FOR DEFENSE SPENDING BUT SENATE ARMED SERVICES CHAIRMAN SAM NUNN D GA SAID YESTERDAY THAT HE AND SEN PETE DOMENICI R NM WILL AGAIN SEEK TO REIMPOSE THE SEPARATE LIMITS DEFENSE SECRETARYDESIGNATE WILLIAM PERRY SAID AT HIS CONFIRMATION HEARING YESTERDAY THAT THE DEFENSE BUDGET THAT WILL BE UNVEILED NEXT WEEK MAKES SUBSTANTIAL TRADEOFFS BETWEEN READINESS AND PROCUREMENT WITH THE LOSER BEING PROCUREMENT OR MODERNIZATION OF EQUIPMENT EVEN THOUGH WE HAVE A SMALLER FORCE PROJECTED FOR '95 THAN FOR '94 HE SAID WE HAVE ASKED FOR SUBSTANTIALLY GREATER FUNDS FOR THE OPERATION AND MAINTENANCE ACCOUNT THE ACCOUNT WHICH IS THE PRINCIPAL DRIVER OF NEARTERM READINESS 9402030069 940203 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO IN SEARCH OF THE NEXT HOME DEPOT NEW NICHE IDEAS TEST THE SUPERSTORE FORMAT WE'RE COMING TO THE END OF THE OBVIOUS SUPERSTORE IDEAS WITH CLEARLY LARGE MARKETS SAYS LLOYD D RUTH OF MARQUETTE VENTURE PARTNERS IN DEERFIELD ILL NEVERTHELESS HE IS PUTTING MONEY ON LIL' THINGS A STORE FOR BABIES AND SMALL CHILDREN THE THREE NEW LIL' THINGS STORES IN DALLAS BOAST HAIR SALONS AND PORTRAIT SHOPS AS WELL AS TOGS TOYS AND FURNITURE IN AUSTIN TEXAS GARY HOOVER A BOOK SUPERSTORE PIONEER PLANS A SHOPPING MECCA FOR TRAVELERS TRAVELFEST SUPERSTORES WILL SELL TRAVEL GEAR SUCH AS LUGGAGE AS WELL AS SERVICES LIKE FARE AND TOUR BOOKINGS MEANWHILE CHICAGO'S REITERS INC THIS WEEK OPENED A 7500SQUAREFOOT STORE JUST FOR CUSTOM AND READYMADE WINDOW COVERINGS THERE'S ROOM FOR A CATEGORY KILLER IN THIS AREA SAYS GEORGE ROSENBAUM A CHICAGO CONSULTANT BUT HOW WILL SUPERSTORES FARE WITH THE DAWN OF ELECTRONIC SHOPPING THEY HAVE THE SOURCING EXPERTISE AND THE COMPUTER AND DISTRIBUTION SYSTEMS TO MAKE THE SHIFT SAYS R FULTON MACDONALD A NEW YORK RETAIL CONSULTANT MANY STILL SAY IT WITH FLOWERS BUT OFFBEAT VALENTINE'S DAY GESTURES ABOUND THE ARLINGTON PARK HILTON IN ILLINOIS TOUTS A 26200 SAFARI PACKAGE THAT INCLUDES A WEEKEND IN A PALMBEDECKED SAFARI SUITE AND A JEEP CHEROKEE TO TAKE HOME COUPLES WHO PREFER INNER EXPLORATION CAN SAMPLE A GETAWAY AT SEATTLE'S MAYFLOWER PARK HOTEL COMPLETE WITH CHAMPAGNE BUBBLE BATH AND A RELATIONSHIP SEMINAR IS A LOVE NOTE PEDESTRIAN VALENTINE MAILING IN JAMAICA NY WILL POST YOUR CARD FROM PARIS THE COST OF CONTINENTAL CACHET 15 MEANWHILE THE AMERICAN BAT CONSERVATION SOCIETY ROCKVILLE MD SUGGESTS BAT BITES TINY CHOCOLATE BAT SCULPTURES THE GROUP IS TRYING TO MAKE THE CREATURES INTO VALENTINE ICONS TO DRIVE HOME THE MESSAGE THAT THEY ARE ADORABLE AND LOVABLE IN THE WORDS OF TOM VALLEGA PRESIDENT AND ROWEMANSE EMPORIUM CLIFTON NJ URGES SERIOUS CHOCOHOLICS TO BRUSH UP ON ROMANCE WITH A JAR OF CHOCOLATE BODY PAINT CALIFORNIA HO MOVERS SAY GETTING THERE MAY BE EVEN CHEAPER THIS SUMMER ANTICIPATING A BIGGER THAN USUAL SPIKE IN DEMAND THIS SUMMER FOR MOVING SERVICES OUT OF QUAKEDAMAGED LOS ANGELES AND THE STATE SOME MOVERS EXPECT TO CUT PRICES FOR INBOUND MOVES TO GET MORE TRUCKS INTO THE AREA WE'LL BE OUT THERE FIGHTING TO GET YOUR BUSINESS TO GET TRUCKS GOING TO CALIFORNIA SAYS JAMES WILSON OF UNITED VAN LINES IN ST LOUIS FOR MOVES FROM SOME STATES HE EXPECTS DISCOUNTS OF 15 TO 50 THIS SUMMER MEANWHILE RYDER SYSTEMS MIAMI HAS ALREADY CUT RENTAL PRICES FOR TRUCKS GOING TO CALIFORNIA UP TO 15 TO MEET DEMAND IN THE QUAKE'S AFTERMATH THE PRICEY ALTERNATIVE DRIVING OR SENDING EMPTY TRUCKS BY RAIL TO THE STATE IN THE PAST TWO SUMMERS ALLIED VAN LINES CHICAGO HAULED APPLIANCES TO CALIFORNIA RETAILERS TO BOLSTER ITS SUPPLY OF VANS IN THE STATE BUT SINCE IT IS THE SLOW SEASON RIGHT NOW ALLIED DOESN'T HAVE TO RESORT TO SUCH TACTICS DESPITE THE JUMP IN LOS ANGELES BUSINESS ALLIED CURRENTLY HAS ENOUGH VANS IN THE STATE TO MEET DEMAND A SPOKESWOMAN SAID RUSHDIE IS REMEMBERED THIS VALENTINE'S DAY THE FIFTH ANNIVERSARY OF THE ISLAMIC DEATH EDICT ON THE WRITER ABOUT 4000 BOOKSTORES WILL INSERT A PAMPHLET ON SALMAN RUSHDIE'S PLIGHT IN ALL BOOKS SOLD CHAT NOW DEAL LATER FORRESTER RESEARCH A CAMBRIDGE MASS TECHNOLOGYRESOURCE FIRM ESTIMATES THAT THE COMMERCIAL ONLINE COMPUTERSERVICE MARKET WILL GROW TO A 3 BILLION INDUSTRY BY 1998 UP FROM TODAY'S 530 MILLION AS USERS MOVE BEYOND TALK AND DATA SHARING TO BUYING GOODS AND SERVICES THE ART OF LENDING IS PRACTICED BY THE WHITNEY MUSEUM OF AMERICAN ART WHICH WILL SEND THE SAN JOSE MUSEUM OF ART HUNDREDS OF WORKS FOR FOUR LONGTERM EXHIBITS OVER SEVEN YEARS IN TURN THE NEW YORK MUSEUM WILL GET 3 MILLION FROM SAN JOSE'S REDEVELOPMENT AGENCY SCREENING FOR PCSMARTS FIRMS UPDATE TESTS FOR SECRETARIAL APPLICANTS COMPANIES ARE CHANGING THEIR TESTS TO KEEP UP WITH HOW COMPUTERS HAVE ALTERED SECRETARIAL WORK AVNET CO GREAT NECK NY DITCHED ITS ELECTRIC TYPING TEST THREE YEARS AGO AFTER COMPLAINTS FROM APPLICANTS THAT IT DIDN'T REPLICATE REALITY SAYS BOB ZIERK VICE PRESIDENT IT NOW USES A 390 SOFTWARE PROGRAM TO GAUGE WORDPERFECT SKILLS FROM COMPOSING LETTERS TO CLEANING UP A DRAFT STATE FARM MUTUAL AUTOMOBILE ALSO RESORTS TO READYMADE SOFTWARE BUT JUST FOR TYPING SKILLS SINCE THE INSURER USES MANY PROGRAMS YOU BRING IN SOMEBODY WITH BASIC KEYBOARD SKILLS AND THEN TRAIN THEM ON A PARTICULAR WORD PROCESSOR A SPOKESMAN SAYS DETROIT EDISON WAITS FOR TESTS BEING DEVISED JUST FOR UTILITIES BY THE EDISON ELECTRIC INSTITUTE A TRADE GROUP THIS WAY THE COMPANY REDUCES CONCERNS THAT AN APPLICANT HAS HAD THE SAME TEST ELSEWHERE CHARLES SCHWAB THE DISCOUNT BROKER DISPENSES WITH TESTS PREFERRING EXTENSIVE REFERENCE CHECKS YOU CAN TEACH COMPUTER SKILLS A SPOKESMAN SAYS BRIEFS NEW YORK UNIVERSITY PRESS PUBLISHES THE GAY LESBIAN AND BISEXUAL STUDENTS' GUIDE TO COLLEGES UNIVERSITIES AND GRADUATE SCHOOLS MORTAL COMBAT IN A PLAY FOR THE VIDEOGAME GENERATION PRINCE SPORTS GROUP INC WILL GIVE AWAY 200 TENNIS RACKETS IN EXCHANGE FOR VIDEOGAME CARTRIDGES IN ATLANTA THIS SATURDAY 9402030068 940203 CREDIT MARKETS TREASURY STUDIES FLOATINGRATE NOTE PROPOSAL BOND PRICES RECOVER FROM PREVIOUS DAY'S PLUNGE BY THOMAS T VOGEL JR AND LAUREN YOUNG STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR YEARS FLOATINGRATE TREASURY SECURITIES HAVE BEEN ON THE WISH LIST OF WALL STREET AND YESTERDAY THAT WISH CAME ONE STEP CLOSER TO REALITY THE TREASURY DEPARTMENT SAID IT IS STUDYING A PROPOSAL TO OFFER A FLOATINGRATE NOTE WHICH COULD ATTRACT NEW INVESTORS PRESENTLY ALL TREASURY SECURITIES ARE SOLD AT A FIXED RATE OF INTEREST ACCORDING TO A DRAFT DOCUMENT OF THE PROPOSED TERMS FOR A FLOATINGRATE NOTE THE TREASURY IS CONSIDERING A NOTE WITH A FIVE TO SEVENYEAR MATURITY THAT WOULD BE SUBJECT TO EARLY CALL OR REDEMPTION THE NOTE WOULD BE INDEXED TO THE PER ANNUM AVERAGE BOND EQUIVALENT RATE FOR 13WEEK TREASURY BILLS THE TREASURY SAID THE FACT THAT IT IS STUDYING THE ISSUE WHICH WAS PROPOSED BY ITS PRIVATESECTOR ADVISORY COMMITTEE LAST JUNE ISN'T NECESSARILY AN INDICATION THAT IT FEELS THE NOTES MIGHT BE A GOOD IDEA WE HAVE NO PLANS TO CHANGE THE CURRENT REGULAR ISSUE CYCLES AND WE HAVE NO BIAS AS TO WHETHER OR NOT THE FLOATINGRATE NOTES WOULD BE A VIABLE OPTION FOR US SAID DARCY BRADBURY DEPUTY ASSISTANT SECRETARY FOR FEDERAL FINANCE ISSUING FLOATINGRATE DEBT WOULD SUBJECT THE GOVERNMENT TO THE VAGARIES OF SHIFTING INTEREST RATES A SHARP RISE IN SHORTTERM INTEREST RATES TO WHICH THE FLOATINGRATE NOTES WOULD BE INDEXED COULD MAKE THEM MORE EXPENSIVE FOR THE GOVERNMENT THAN FIXEDRATE NOTES BUT CAMPBELL HARVEY A PROPONENT OF THE PROPOSAL AND A PROFESSOR OF FINANCE AT THE FUQUA SCHOOL OF BUSINESS AT DUKE UNIVERSITY THINKS OTHERWISE GIVEN THE BIG GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES SHORTTERM RATES COULD GO UP AND FLOATINGRATE DEBT WOULD STILL BE CHEAPER THAN FIXED LONGTERM DEBT HE SAID LET'S SAY THE GOVERNMENT SELLS FLOATINGRATE FIVEYEAR NOTES SAID MR HARVEY IF THE INTEREST RATE IS PEGGED TO THE 13WEEK TREASURY BILL IT WOULD BE ABOUT 312 AS OF YESTERDAY HE EXPLAINED SINCE FIXEDRATE FIVEYEAR NOTES YIELDED 508 YESTERDAY THE TREASURY WOULD BE SAVING INTEREST COSTS AS LONG AS THE BILL RATES DIDN'T RISE ABOVE THE FIVEYEAR NOTE RATES AND EVEN IF BILL RATES DID RISE ABOVE THE FIVEYEAR NOTE RATES AT SOME POINT SAID MR HARVEY THEY WOULD HAVE TO RISE VERY QUICKLY AND VERY FAR FOR FLOATINGRATE NOTES TO BECOME MORE EXPENSIVE IN TERMS OF INTEREST COSTS LET'S SAY BILL RATES RISE ABOVE THE FIVEYEAR RATE IN THE FOURTH YEAR HE SAID THE GOVERNMENT WOULD HAVE SAVED MONEY OVER THOSE FOUR YEARS OF COURSE ROSY PREDICTIONS OF INTERESTRATE SAVINGS DEPEND ON THE PATH OF INTEREST RATES IN THE FUTURE WHICH EVEN MANY OF THE NATION'S TOP ECONOMISTS WERE UNABLE TO PREDICT CORRECTLY LAST YEAR IN MARKET ACTIVITY THE BENCHMARK 30YEAR TREASURY BOND YIELD DROPPED TO 628 FROM 631 ON TUESDAY THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE 1/2 POINT OR 5 FOR A BOND WITH A 1000 FACE VALUE TO 99 17/32 MEANWHILE THE REPUBLIC OF CHINA SOLD 1 BILLION OF 10YEAR GLOBAL NOTES IT WAS THE NATION'S FIRST GLOBALNOTE OFFERING AND WILL LIKELY SERVE AS A BENCHMARK FOR FUTURE DEBT ISSUES FROM CHINA GLOBAL NOTES ARE SECURITIES DESIGNED TO BE EASILY BOUGHT AND SOLD IN THE WORLD'S MAJOR MARKETS MS BRADBURY OF THE TREASURY DEPARTMENT SAID THE MAIN FACTOR IN DETERMINING WHETHER THE TREASURY WOULD OPT FOR A FLOATINGRATE NOTE WOULD BE WHETHER SUCH AN ITEM WOULD REDUCE BORROWING COSTS FOR THE DEPARTMENT LAST JUNE THE TREASURY ADVISORY BORROWING COMMITTEE SUGGESTED THE DEPARTMENT CONSIDER FLOATINGRATE NOTES IN ORDER TO PREVENT POSSIBLE FUNDING DIFFICULTIES THE SUGGESTION STEMMED FROM THE TREASURY'S DECISION LAST SPRING TO CUT THE AMOUNT OF LONGTERM DEBT IT SELLS IN FAVOR OF ISSUING MORE SHORTTERM DEBT FLOATINGRATE SECURITIES ARE COMMONPLACE IN THE CORPORATE AND MUNICIPAL BOND MARKETS BUT THEY WOULD AMOUNT TO A NEW WRINKLE FOR THE TREASURY'S FINANCING SCHEMES POSSIBLE BUYERS FOR SUCH SECURITIES WOULD INCLUDE INSTITUTIONS LOOKING TO HEDGE THEIR EXPOSURE TO INTERESTRATE SWAPS IN WHICH ONE INSTITUTION SWAPS FLOATING INTEREST RATE PAYMENTS FOR FIXED ONES SAID LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES A FIRM THAT PROVIDES ANALYSIS OF TREASURY POLICIES AND ACTIVITIES THE INTERESTRATE SWAP MARKET IS ONE OF THE FASTEST GROWING SECTORS IN ALL THE WORLD'S BOND MARKETS ACCORDING TO ART ZIMMER A PORTFOLIO MANAGER AT OPPENHEIMER MANAGEMENT CORP BANKS MAY FIND FLOATINGRATE TREASURY NOTES ATTRACTIVE AS WELL BANKS TEND TO BUY SHORTMATURITY SECURITIES AND FLOATINGRATE INSTRUMENTS WOULD ELIMINATE A LOT OF INTEREST RATE RISK HE SAID MR ZIMMER ADDED THAT OPPENHEIMER HAS ABOUT 25 OF ITS TOTAL ASSETS OF 7 BILLION IN FLOATINGRATE OR VARIABLERATE SECURITIES THE REDUCTION OF INTERESTRATE RISK COULD BE A RATHER SIGNIFICANT BENEFIT FOR MANY INVESTORS HE SAID BUT THE GOVERNMENT WOULD BE TAKING IT ON INSTEAD HE POINTED OUT BUT MR CRANDALL OF WRIGHTSON & ASSOCIATES SAID THERE IS SOMETHING CURIOUS ABOUT THE FACT THAT WHEN EVERYONE ELSE IN AMERICA IS TRYING TO LOCK IN THE LONGEST RATES THEY CAN THE TREASURY HAS DECIDED IT LIKES TO BORROW AT THE SHORT END OF THE CURVE THOUGH THE TREASURY'S PROPOSED FLOATINGRATE NOTE COULD HAVE MATURITIES OF FIVE TO SEVEN YEARS THEY WOULD BE PAYING INTEREST OF SHORTTERM SECURITIES EVEN IF THERE WEREN'T A BIG GAP BETWEEN SHORT AND LONGTERM RATES MR HARVEY OF DUKE ARGUES THAT FLOATINGRATE DEBT WOULD STILL BE A GOOD IDEA ISSUANCE OF FLOATINGRATE DEBT COULD HAVE A DIRECT INFLUENCE ON ECONOMIC POLICY MR HARVEY ADDED FLOATINGRATE DEBT PENALIZED AN INFLATIONARY POLICY HE SAID IF THERE IS ANY IDEA OF REINFLATION SHORTTERM RATES WOULD RISE AND THE SERVICING COSTS OF THE DEBT WOULD GO UP AS WELL HE SAID IT'S A POLICYCONSISTENT STRATEGY SEPARATELY THE TREASURY SAID IT PLANS TO SELL 40 BILLION OF NOTES AND BONDS IN ITS MIDQUARTER REFUNDING NEXT WEEK TO RAISE ABOUT 16 BILLION IN NEW CASH THE REFUNDING WILL CONSIST OF 17 BILLION IN THREEYEAR NOTES DUE FEB 15 1997 TO BE SOLD TUESDAY IN MINIMUM DENOMINATIONS OF 5000 12 BILLION IN 10YEAR NOTES DUE FEB 15 2004 TO BE AUCTIONED WEDNESDAY IN MINIMUM DENOMINATIONS OF 1000 AND 11 BILLION IN 30YEAR BONDS DUE AUG 15 2023 TO BE SOLD NEXT THURSDAY IN MINIMUM DENOMINATIONS OF 1000 SOME OF THE PROCEEDS OF THE SALE WILL BE USED TO REFUND 24 BILLION IN MATURING DEBT THE CUSIP NUMBERS ARE 912827N73 FOR THE THREEYEAR NOTES 912827N81 FOR THE 10YEAR NOTES AND 912810EQ7 FOR THE 30YEAR BONDS NONCOMPETITIVE TENDERS FOR THE NOTES AND BONDS MUST BE RECEIVED BY NOON EDT ON THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES THE AUCTION SIZES WERE MOSTLY AS EXPECTED ALTHOUGH SOME IN THE MARKET HAD BEEN LOOKING FOR A SMALLER 30YEAR BOND OFFERING IN WHENISSUED TRADING LATE YESTERDAY THE THREEYEAR NOTE YIELDED 455 THE 10YEAR NOTE YIELDED 567 AND THE BOND YIELDED 629 PRICES OF MOST US TREASURY NOTES AND BONDS ENDED HIGHER YESTERDAY AFTER A LATEAFTERNOON RALLY REVERSED A PORTION OF TUESDAY'S DECLINES THE BEST PERFORMING ISSUES WERE LONGERTERM MATURITIES WITH SHORTTERM TREASURY SECURITIES STILL UNDER PRESSURE FROM CONCERNS THAT THE FEDERAL RESERVE IS CLOSER TO RAISING INTEREST RATES THAN HAD BEEN RECENTLY THOUGHT THE 10YEAR NOTE ROSE NEARLY 1/4 POINT TO 100 8/32 TO YIELD 579 COMPARED WITH 573 ON TUESDAY THE TWOYEAR NOTE ENDED UNCHANGED AT 99 20/32 TO YIELD 418 THE PROMISE OF CONTINUED GROWTH IN THE PEOPLE'S REPUBLIC OF CHINA LURED US AND ASIAN INVESTORS TO THE COUNTRY'S DEBUT 1 BILLION GLOBAL NOTE OFFERING YESTERDAY CHINA'S 65 COUPON 10YEAR GLOBAL NOTES WERE SOLD AT 99406 TO YIELD 6582 THROUGH LEAD MANAGER MERRILL LYNCH THE COMPANY SOLD THE NOTES ONLY HOURS AFTER IT WAS LAUNCHED AND A DAY EARLIER THAN EXPECTED MERRILL LYNCH OFFICIALS DECLINED TO COMMENT ON THE GLOBALNOTE OFFERING HOWEVER NOT EVERYONE LINED UP TO BUY THE PAPER ONE INVESTOR WHO DIDN'T BUY SAID HE WAS SKEPTICAL ABOUT CHINA'S ECONOMIC PROSPECTS HE ADDED THAT HE DOESN'T BELIEVE THE BONDS OFFERED ENOUGH YIELD TO COMPENSATE FOR THE RISKS INVOLVED THE INVESTOR SUGGESTED THAT THE DEAL'S PRICING MAY HAVE BEEN SPEEDED UP BECAUSE OF A CLINTON ADMINISTRATION REPORT TUESDAY TO CONGRESS SPOTLIGHTING BEIJING'S REPORTED HUMANRIGHTS VIOLATIONS HE SAID THE REPORT RAISES CONCERNS THAT THE HUMANRIGHTS ISSUE COULD ENDANGER CHINA'S MOSTFAVORED NATION STATUS WITH THE US SYNDICATE OFFICIALS COUNTERED THAT THE BOND MARKET HAS ALREADY FACTORED INTO THE PRICING THE REPEATED REPORTS OF CHINA'S HUMANRIGHTS ABUSES AND POSSIBLE TRADE CONSEQUENCES THE DESIRE FOR YIELD IS CLOUDING OUT AND CROWDING OUT ALL OTHER ISSUES SAID JAMES SWANSON SENIOR VICE PRESIDENT AT MASSACHUSETTS FINANCIAL SERVICES ADDING THAT INVESTMENTGRADE BUYERS ARE SCRAMBLING TO BOOST RETURNS EUROPEAN INVESTORS SEEMED TO SHUN THE OFFERING ONE SYNDICATE OFFICIAL INVOLVED WITH THE OFFERING SAID THE DEBT WAS PRICED AT A YIELD SPREAD THAT WAS 005 TO 010 PERCENTAGE POINT TOO NARROW TO LURE EUROPEAN INVESTORS WHO AREN'T AS UPBEAT ON CHINA AS THEIR ASIAN AND US COUNTERPARTS CHINA'S GLOBAL NOTES WHICH ARE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE AND TRIPLEB BY STANDARD & POOR'S WERE PRICED 085 PERCENTAGE POINT OVER THE 10YEAR TREASURY NOTE THE SUCCESS OR FAILURE OF THE DEAL WILL ULTIMATELY BE DETERMINED IN THE SECONDARY MARKET THE REAL TELLING STORY IS HOW IT WILL SELL IN 24 HOURS ONE OFFICIAL INVOLVED WITH CHINA'S OFFERING SAID MUNICIPAL BONDS FINISHED YESTERDAY'S SLOW TRADING UNCHANGED TO 1/4 POINT HIGHER HAVING MAINTAINED A STRONG TONE DESPITE TWO MORE UNEXPECTEDLY STRONG US ECONOMIC REPORTS SALEM COUNTY NEW JERSEY'S 545 BONDS DUE 2032 CLOSED 1/8 HIGHER AT 99 5/8 YIELDING 547 SALES OF NEW SINGLEFAMILY HOMES JUMPED 114 IN DECEMBER TO AN 862000 ANNUAL RATE THAT MONTH THE INDEX OF LEADING INDICATORS ROSE 07 REGISTERING THE FIFTHCONSECUTIVE RISE AND CAPPING THE STRONGEST STRING OF INCREASES IN A DECADE THE COMMERCE DEPARTMENT SAID ALTHOUGH MUNIS HAVE HAD A GENERALLY STRONG TONE FOR THE LAST WEEK OR SO SOME MARKET PARTICIPANTS NOTE THAT PURCHASES HAVEN'T BEEN VERY AGGRESSIVE BUT SMITH BARNEY SHEARSON PORTFOLIO STRATEGIST GEORGE FRIEDLANDER SAID THAT MUNIS SHOULD GET A BOOST IN THE MONTHS AHEAD FROM A WIDELY ANTICIPATED ISSUANCE SLOWDOWN PRICINGS OF REFUNDING BONDS WHICH EXCEEDED 185 BILLION IN 1993 AND SET A RECORD ARE EXPECTED TO EBB THIS YEAR MOODY'S INVESTORS SERVICE SAID ITS OUTLOOK FOR MUNICIPAL CREDIT QUALITY IN 1994 IS CAUTIOUSLY OPTIMISTIC AND PREDICTED THAT THE YEAR WILL BE CHARACTERIZED BY FOUR BROAD POSITIVE TRENDS THOSE TRENDS ARE THE NATIONAL ECONOMIC RECOVERY LOWER DEBTSERVICE COSTS BECAUSE OF REFUNDINGS LOWER OIL PRICES AND THE END OF THE DETERIORATION IN STATECREDIT QUALITY MOODY'S SAID LUCINDA HARPER IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9402030067 940203 WHAT'S NEWS BUSINESS AND FINANCE THE BUSINESS ROUNDTABLE VOTED TO SUPPORT A HEALTHCARE BILL THE CLINTON ADMINISTRATION OPPOSES DESPITE ARDENT WHITE HOUSE LOBBYING THE ORGANIZATION OF CHIEF EXECUTIVES OF SOME OF THE NATION'S LARGEST CORPORATIONS AGREED TO BACK THE COOPERBREAUX BILL WHICH WOULD FALL SHORT OF THE ADMINISTRATION'S GOAL OF GUARANTEEING COVERAGE FOR EVERY AMERICAN THE INDEX OF LEADING ECONOMIC INDICATORS JUMPED A VIGOROUS 07 IN DECEMBER ITS FIFTH CONSECUTIVE RISE SEPARATELY SALES OF NEW HOMES SHOT UP 114 IN DECEMBER TO AN ANNUAL RATE OF 862000 THE HIGHEST IN SEVEN YEARS ROGERS COMMUNICATIONS PLANS TO MAKE AN OFFER VALUED AT 203 BILLION FOR 83 OF MACLEAN HUNTER TO FORM A MEDIA COMPANY THAT WOULD CONTROL ONETHIRD OF CANADIAN CABLE TV A BIPARTISAN GROUP OF SENATORS IS EXPECTED TO INTRODUCE LEGISLATION DESIGNED TO ENSURE ACCESS TO TELEPHONE SERVICES WHILE BREAKING DOWN BARRIERS BETWEEN CABLETV FIRMS AND LONGDISTANCE AND REGIONAL PHONE COMPANIES STATE REGULATORS ARE EXAMINING WAYS TO PROD BROKERS TO DISCLOSE INVESTMENT INFORMATION MORE QUICKLY A MOVE STEMMING FROM THE PARTNERSHIP SCANDAL AT PRUDENTIAL SECURITIES VIACOM HAS A CLEAR BUT NARROW EDGE OVER QVC AFTER THE FINAL ROUND OF BIDDING FOR PARAMOUNT TRADERS SAID QVC STOCK SURGED 225 TO 47 AND VIACOM CLASS B SHARES FELL 625 CENTS TO 3350 REFLECTING THE VIEW THAT THE EVENTUAL WINNER WILL ISSUE MILLIONS OF NEW SHARES AND TAKE ON DEBT VANGUARD GROUP PLANS TO ENTER THE EMERGINGMARKETS MUTUALFUND ARENA WITH AN INDEX FUND THAT AIMS TO KEEP TRADING AND EXPENSES TO A MINIMUM THE TREASURY IS STUDYING A PROPOSAL TO OFFER A FLOATINGRATE NOTE WHICH MAY ATTRACT MORE INVESTORS MANY US COMPANIES ARE EAGER TO ENTER THE VIETNAM MARKET BUT SEVERAL MORE DIPLOMATIC STEPS ARE NEEDED BEFORE SOME CAN TAKE FULL ADVANTAGE THE CHICAGO MERCANTILE EXCHANGE IS MAKING IT MORE EXPENSIVE TO SPECULATE IN STOCKINDEX FUTURES APPARENTLY TO AVERT A STOCKMARKET SELLOFF IF INTEREST RATES BEGIN TO INCREASE SHARPLY TOKYO UNVEILED A TAX CUT AS THE FIRST PART OF ITS STIMULUS PACKAGE WHICH IS EXPECTED TO TOTAL ABOUT 138 BILLION JACOBY & MEYERS LAUNCHED WHAT LEGAL EXPERTS SAY ARE THE FIRST TELEVISION ADS TO INVITE PEOPLE TO CONSIDER SUING A SPECIFIC COMPANY COPLEY PHARMACEUTICAL WHICH RECALLED AN ASTHMA DRUG ALBUTEROL LAST MONTH EURO DISNEY POSTED A 31 WIDER LOSS FOR ITS FIRST QUARTER AS BANKERS HELD INCONCLUSIVE TALKS ABOUT ITS FATE BELL ATLANTIC AND KNIGHTRIDDER AGREED TO JOINTLY DEVELOP NEWS ENTERTAINMENT AND ADVERTISING PROGRAMMING FOR AN INTERACTIVE SERVICE BONDS LEHMAN BROTHERS TREASURY INDEX 561579 UP 1568 COMMODITIES OIL 1604 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 14353 UP 041 SPOT INDEX 13072 UP 018 DOLLAR 10788 YEN UP 018 17336 MARKS UP 00016 9402030066 940203 YOUR MONEY MATTERS INVESTMENT DARTBOARD INVESTMENT PROS POST EASY WIN IN LATEST STOCKPICKING CONTEST BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTMENT PROFESSIONALS SCORED A DECISIVE VICTORY IN THIS COLUMN'S LATEST STOCKPICKING CONTEST BUT A RANDOM THROW OF DARTS DIDN'T DO TOO BADLY EITHER LED BY EDWARD C TED RORER FOUNDER AND CHIEF INVESTMENT OFFICER OF RORER ASSET MANAGEMENT IN PHILADELPHIA FOUR PROS CHALKED UP A 278 AVERAGE GAIN IN THE CONTEST THAT RAN FROM AUG 16 THROUGH JAN 31 THE WHIMS OF CHANCE REPRESENTED BY FOUR WALL STREET JOURNAL STAFFERS FLINGING DARTS AT THE STOCK LISTINGS POSTED AN 185 AVERAGE GAIN THE DOW JONES INDUSTRIAL AVERAGE SHOWED A GAIN OF 112 DURING THE PERIOD THE LATEST RESULTS BRING THE TALLY OF PRO WINS AGAINST THE DARTS TO 26 TO 18 IN THIS SERIES OF OVERLAPPING SIXMONTH CONTESTS THAT BEGAN IN 1990 AGAINST THE INDUSTRIAL AVERAGE HOWEVER THE PROS EKED OUT A MUCH NARROWER LEAD OF 23 WINS TO 21 THE PROS LOOK BETTER MEASURED BY THE ACTUAL PERFORMANCE OF THEIR SELECTIONS FOR ALL 44 SIXMONTH CONTESTS THE AVERAGE GAIN FOR THE PROS IS 83 COMPARED WITH AN AVERAGE 38 FOR THE DARTS AND 45 FOR THE DOW INDUSTRIALS THIS TIME AROUND EACH OF THE PROS' FOUR PICKS BEAT THE INDUSTRIAL AVERAGE THE TOP PERFORMER MR RORER'S CHOICE OF SANTA FE PACIFIC CORP THE SCHAUMBURG ILL RAILROAD COMPANY ROSE A RESOUNDING 407 IT WAS FOLLOWED BY A 296 GAIN FOR PHILIP MORRIS COS THE NEW YORK TOBACCO AND FOOD GIANT SELECTED BY MICHAEL METZ CHIEF INVESTMENT STRATEGIST FOR OPPENHEIMER & CO IN NEW YORK AS IS CUSTOMARY THE TOP TWO FINISHERS HAVE BEEN INVITED BACK FOR ANOTHER SKIRMISH IT WILL BE MR METZ'S THIRD TIME AS A CONTESTANT HE PLACED FIRST IN THE COMPETITION THAT RAN FROM FEBRUARY THROUGH JULY OF LAST YEAR WHEN HIS CHOICE OF HOMESTAKE MINING SOARED 80 MR RORER IS BETTING ON A COMMODITY PLAY TO REPEAT HIS FIRSTPLACE FINISH IN THE CURRENT CONTEST HIS STOCK PICK FOR THE COMING SIX MONTHS IS IMC FERTILIZER GROUP INC OF NORTHBROOK ILL WHICH MINES PHOSPHATE AND MAKES DIAMMONIUM PHOSPHATE A FERTILIZER KNOWN AS DAP THEIR KEY TO PROFITABILITY IS THE PRICE OF DAP MR RORER SAYS PRICES FELL TO A 20YEAR LOW LAST YEAR AS WORLDWIDE SUPPLY EXCEEDED DEMAND AND SUBSIDIES FOR FOREIGN PRODUCERS SQUEEZED US EXPORTERS REVIVING DEMAND PLUS THE SCRAPPING OF SOME SUBSIDIES HAS BUOYED PRICES THIS YEAR ALTHOUGH MR RORER NOTES THAT THEY'RE STILL BELOW THEIR 10YEAR AVERAGE AND WELL BELOW THE 1988 PEAK IMC STOCK TRADED LATE YESTERDAY ON THE BIG BOARD AT 45 UP FROM A LOW OF 24375 LAST YEAR BUT STILL LOWER THAN THE 68 A SHARE IT FETCHED IN 1992 THE COMPANY RESOLVED SOME PENDING PROBLEMS IN 1993 BY SETTLING A LAWSUIT RELATED TO A 1991 EXPLOSION AT A PLANT IT OPERATED FOR ALBERTA NATURAL GAS CO'S ANGUS CHEMICAL UNIT AND BY RESTRUCTURING ITS DEBT MR RORER SAYS IMC ALSO CUT PHOSPHATE PRODUCTION COSTS THROUGH A JOINT VENTURE WITH A LIMITED PARTNERSHIP THAT IS 513OWNED BY FREEPORT MCMORAN INC LOOKING FORWARD MR RORER ADDS FERTILIZER DEMAND SHOULD GET A BOOST FROM GROWTH IN THE WORLD'S POPULATION SINCE MORE PEOPLE WILL HAVE TO BE FED WITH CROPS GROWN ON A FIXED AMOUNT OF LAND THE US MARKET LOOKS GOOD HE SAYS BECAUSE CORN PRODUCTION PLUMMETED 31 LAST YEAR AND INVENTORIES HAVE TO BE REPLENISHED MEANWHILE OPPENHEIMER'S MR METZ IS PUTTING HIS CHIPS ON GOLD TO WIN THE CURRENT CHALLENGE HIS CHOICE IS HORSHAM CORP A TORONTO HOLDING COMPANY WHICH CONTROLS 20 OF AMERICAN BARRICK RESOURCES CORP A TORONTO GOLD MINING CONCERN MR METZ SAYS GOLD PRICES COULD RISE TO 500 AN OUNCE THIS YEAR FROM ABOUT 385 CURRENTLY HORSHAM ALSO OWNS CLARK REFINING & MARKETING INC OF ST LOUIS AND HAS REALESTATE INTERESTS IN GERMANY MR METZ NOTES THAT THE COMPANY HAS AN 800 MILLION CASH HORDE TO USE FOR ACQUISITIONS INCLUDING 550 MILLION FROM A DEBENTURE OFFERING AT 3 1/4 IT'S CHEAP MONEY I THINK THEY WILL PUT IT TO GOOD USE HE SAYS THE DEBENTURES ARE CONVERTIBLE INTO AMERICAN BARRICK SHARES AT HORSHAM'S OPTION HORSHAM OFFICIALS HAVE SAID THEY'VE RULED OUT ACQUIRING ANOTHER GOLD MINING CONCERN BUT OTHERWISE THEIR POSSIBILITIES AREN'T LIMITED BY GEOGRAPHY OR INDUSTRY IT'S PARTLY A GOLD PLAY PARTLY AN ENTREPRENEURIAL PLAY MR METZ SAYS ABOUT HIS CHOICE THE COMPANY HAS STRONG ENTREPRENEURIAL MANAGEMENT THE STOCK TRADED AT 14625 LATE YESTERDAY ON THE NEW YORK STOCK EXCHANGE MR METZ THINKS THE PRICE COULD RISE AS MUCH AS 50 DURING THE COURSE OF THE CONTEST JOINING MR RORER AND MR METZ IN THE CURRENT COMPETITION WHICH RUNS THROUGH JULY 31 ARE THERESA HAMACHER AND BEN ZACKS MS HAMACHER IS MANAGING DIRECTOR OF PRUDENTIAL INVESTMENT ADVISORS THE NEWARK NJ UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA THAT MANAGES THE PRUDENTIAL MUTUAL FUNDS MR ZACKS IS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH INC IN CHICAGO MS HAMACHER'S CHOICE IS USXUS STEEL GROUP THE STEELMAKING UNIT OF THE PITTSBURGHBASED USX CORP THAT TRADES AS A SEPARATE COMPANY THE ENTIRE STEEL INDUSTRY HAS UNDERGONE A MASSIVE RESTRUCTURING SHE SAYS AND STANDS TO BENEFIT FROM THE ECONOMIC RECOVERY PARTICULARLY THE STRONG AUTO CYCLE THAT WE'RE SEEING US STEEL HAS REDUCED COSTS SUBSTANTIALLY CUTTING CAPACITY TO A THIRD OF WHAT IT WAS IN 1980 MS HAMACHER SAYS PLANT MODERNIZATION COSTS ARE BEHIND THE COMPANY NOW AND ITS PENSION PLAN IS OVERFUNDED SHE ADDS COST REDUCTIONS AND A WEAK DOLLAR PUT US STEEL IN A STRONG COMPETITIVE POSITION INTERNATIONALLY AND IT ALSO STANDS TO BENEFIT FROM CAPACITY REDUCTIONS OVERSEAS MS HAMACHER SAYS SHE SAYS THE STOCK PRICE COULD GO TO 60 OR 65 IN THE NEXT SIX MONTHS IT TRADED ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY AT 4250 MR ZACKS FOR HIS PART LIKES UAL CORP THE CHICAGOBASED PARENT OF UNITED AIRLINES ASSUMING THAT THE COMPANY'S PROPOSED EMPLOYEELED BUYOUT IS APPROVED BY SHAREHOLDERS THIS SPRING HE EXPECTS EARNINGS ESTIMATES TO RISE PUSHING UP THE STOCK PRICE THE TWO LARGEST COST ITEMS IN THE AIRLINE BUSINESS ARE LABOR AND FUEL AND BOTH APPEAR TO BE COMING DOWN DRAMATICALLY MR ZACKS SAYS HE ALSO THINKS THE AIRLINE'S ROUTES TO THE FAR EAST WILL GENERATE INCREASED REVENUE AND PROFITS I DON'T THINK ANY OF THIS IS REFLECTED IN THE STOCK PRICE HE SAYS UNDER TERMS OF THE BUYOUT PROPOSAL WHICH HAS BEEN APPROVED BY THE AIRLINE'S PILOTS AND MACHINISTS EMPLOYEES WOULD EXCHANGE WAGE AND WORKRULE CONCESSIONS FOR AN INITIAL 53 STAKE IN UAL THE PLAN ALSO WOULD PERMIT UNITED TO SET UP A SEPARATE LOWFARE SHORTROUTE CARRIER WITH LOWER LABOR COSTS MAKING IT A STRONGER COMPETITOR AGAINST NOFRILLS CARRIERS UAL TRADED LATE YESTERDAY AT 146 ON THE NEW YORK STOCK EXCHANGE THE PROS' STOCK SELECTIONS WILL BE UP AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BANCFIRST CORP OF OKLAHOMA CAMPBELL SOUP CO CARENETWORK INC AND NORTHERN BORDER PARTNERS LP WIN THIS CONTEST A COUPLE OF TIMES AND PEOPLE WILL BEAT A PATH TO YOUR PICKS A STUDY BY SCOTT SMART AND JASON GREENE OF INDIANA UNIVERSITY FINDS THAT THE AVERAGE STOCK FEATURED IN THE INVESTMENT DARTBOARD COLUMN RISES 16 ON PUBLICATION DAY WITH AN 87 INCREASE IN TRADING VOLUME BUT STOCKS FAVORED BY CONTESTANTS WHO HAVE PREVIOUSLY DONE WELL IN THE CONTEST FINISHING FIRST OR SECOND AT LEAST TWICE RISE 54 ON AVERAGE WITH AN INCREASE IN TRADING VOLUME OF 234 READERS WHO HOPE TO PROFIT BY JUMPING ON THE BANDWAGON MAY WELL MISS OUT HOWEVER THE INDIANA RESEARCHERS SAY MOST OF THE PRICE JUMP OCCURS DURING THE FIRST HALFHOUR OF TRADING SERVICES/TRADELINE LAKESHORE BANCORP UP 319 GENERAL ELECTRIC UP 102 CAPITAL AMERICAN FINANCIAL DOWN 22 9402030065 940203 WORKERS AT RISK CHANCE OF GETTING HURT IS GENERALLY FAR HIGHER AT SMALLER COMPANIES FIRMS MAY BE PREOCCUPIED WITH STAYING IN BUSINESS LACK SUFFICIENT EXPERTISE FIRES FUMES FALLING LUMBER BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL FOUR YEARS AGO MARIO BARRAZA JUMPED AT A CHANCE TO WORK FOR A SMALL METALRECYCLING SHOP IN ALBUQUERQUE NM BUT LATER THE UNEMPLOYED YOUNG FATHER DID CONFIDE ONE WORRY TO HIS FAMILY THE HUGE GUILLOTINE SHEAR THAT HE WAS THEN OPERATING AT ACME IRON & METAL CO SEEMED DANGEROUS THE MACHINE COMPACTED SCRAP METAL IN A STEEL BOX 22 FEET LONG AND PUSHED OUT THE COMPACTED MASS THEN ITS VERTICAL BLADE SLICED IT LIKE BUTTER IN SEPTEMBER 1992 MR BARRAZA GOT CAUGHT INSIDE THE MACHINE AND WAS CUT IN HALF THOUGH NOBODY WITNESSED THE ACCIDENT A NEW MEXICO SAFETY INSPECTOR SAID MR BARRAZA PROBABLY WAS TRYING TO RETRIEVE A PIECE OF SCRAP THAT HAD STALLED THE MACHINE WHEN THE RAM REENERGIZED AND KILLED HIM INSTANTLY THE STATE CITED ACME IRON & METAL FOR 18 SERIOUS SAFETY VIOLATIONS INCLUDING LACK OF ANY PROGRAM TO PREVENT THE GUILLOTINE SHEAR FROM UNEXPECTEDLY STARTING UP THE 650000 MACHINE LACKED A COMMON SAFETY DEVICE A 30 PADLOCK ON ITS POWER SWITCH A WELLTRAINED EMPLOYEE WOULD LOCK OFF THE POWER BEFORE DOING ANY MAINTENANCE ACME'S OWNER WALTER SCHMIDER SAYS THAT SAFETY HAS ALWAYS BEEN IMPORTANT TO HIM AND THAT SINCE THE ACCIDENT THE COMPANY HAS INVESTED UP TO 70000 IN EQUIPMENT TO MEET REGULATIONS BUT HE CONTENDS THAT THE CHANGES HAVEN'T MADE HIS COMPANY ANY SAFER AND DOUBTS THAT A PADLOCK WOULD HAVE SAVED MR BARRAZA'S LIFE ALTHOUGH UNSAFE CONDITIONS AT GIANT CORPORATIONS ATTRACT THE MOST ATTENTION MANY OF THE WORST HAZARDS ARE AT SMALL COMPANIES A WALL STREET JOURNAL COMPUTER ANALYSIS OF MORE THAN 500000 FEDERAL AND STATE SAFETYINSPECTION RECORDS FROM 1988 THROUGH 1992 SHOWS THAT 4337 WORKERS DIED AT INSPECTED WORKPLACES WITH FEWER THAN 20 EMPLOYEES BUT ONLY 127 DIED AT THOSE WITH MORE THAN 2500 WORKERS AT THE SMALLEST SITES THERE WERE 197 DEATHS PER 1000 WORKERS OVER THE FIVE YEARS COMPARED WITH JUST 0004 DEATHS PER 1000 WORKERS AT THE LARGEST WORKPLACES OF EMPLOYEES AT INSPECTED WORK SITES WITH FEWER THAN 20 WORKERS ONE IN SIX WORKED IN AN AREA CITED FOR A SERIOUS SAFETY VIOLATION AT THE BIG SITES ONLY ONE IN 600 DID OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OFFICIALS CAUTION THAT BECAUSE OF GOVERNMENT INSPECTION POLICIES ANY DATABASE ANALYSIS MIGHT EXAGGERATE THE DANGERS IN A SMALL BUSINESS THEY SAY A HIGH NUMBER OF INSPECTIONS OF SMALL VERY HAZARDOUS CONSTRUCTION SITES MAY PARTLY SKEW THE RESULTS THEY ADD THAT INVESTIGATORS TYPICALLY INSPECT A SMALL PLANT THOROUGHLY BUT A LARGE ONE ONLY PARTIALLY MOREOVER MANY SMALL WORKPLACES DO MAINTAIN HIGH SAFETY AND HEALTH STANDARDS AND SOME ARE PARTS OF BIG COMPANIES STILL THE FINDINGS RAISE FRESH CONCERNS ABOUT WORKER HEALTH AND SAFETY ESPECIALLY AS BIG COMPANIES LAY OFF EMPLOYEES AND MORE PEOPLE WORK AT SMALL FIRMS THE STATISTICAL EVIDENCE ECHOES THE EXPERIENCE OF PROFESSIONALS IN THE FIELD WE HAVE SEEN MORE DEPLORABLE CONDITIONS IN SMALL BUSINESSES THAN IN LARGE ONES SAYS GARY ANDERSON AREA DIRECTOR FOR THE OSHA OFFICE IN CALUMET CITY ILL CAROL AMATO ADMINISTRATOR OF VIRGINIA'S OCCUPATIONAL HEALTH AND SAFETY PROGRAM NOTES THAT MORE THAN HALF OF THE DEATHS THAT HER OFFICE INVESTIGATES OCCUR AT SITES WITH FEWER THAN 21 EMPLOYEES AT MANY SMALL BUSINESSES SHE SAYS IT TAKES A SERIOUS ACCIDENT OR FATALITY FOR THEM TO WAKE UP PROFESSIONALS SAY SMALL BUSINESSES GENERALLY DON'T FACE THE PUBLICITY UNION PRESSURE AND GOVERNMENT SCRUTINY THAT FORCE LARGE COMPANIES TO TAKE HEALTH AND SAFETY SERIOUSLY INSTEAD MANY ARE PREOCCUPIED WITH JUST STAYING IN BUSINESS SOMETIMES SMALL BUSINESSES SURVIVE BY PUSHING LABOR STANDARDS DOWN SAYS HARLEY SHAIKEN A UNIVERSITY OF CALIFORNIA AT BERKELEY WORKPLACE SPECIALIST ACME'S MR SCHMIDER FOR EXAMPLE SAYS HE IS RELUCTANT TO DISMISS EMPLOYEES WHO DON'T OBSERVE SAFETY PRACTICES A COMMON COURSE OF ACTION AT LARGE COMPANIES NOTING THAT HIS STARTING PAY IS ONLY 550 TO 650 AN HOUR HE SAYS WE CAN'T GET PEOPLE SO HOW CAN WE FIRE THEM MOST SMALL COMPANIES DON'T HAVE ANY MEDICAL STAFF TRAINED SUPERVISORS AND PROFESSIONALS WHO TRACK HEALTH AND SAFETY REGULATIONS A RECENT NATIONAL SAFETY COUNCIL SURVEY FOUND THAT ONLY 31 OF COMPANIES WITH FEWER THAN 50 EMPLOYEES HAVE LABORMANAGEMENT COMMITTEES THAT MONITOR WORKPLACE HEALTH AND SAFETY COMPARED WITH 75 OF LARGER EMPLOYERS LACK OF EXPERTISE BREEDS DISREGARD OF HAZARDS ULYSSES GRIFFIN WORKED FOR YEARS SANDBLASTING METAL PRODUCTS WITH SILICA SAND AT COMMERCIAL STEEL TREATING CO A TINY METALTREATING FIRM IN CLEVELAND HE DIED IN JULY 1991 AT AGE 56 OF SEVERE SILICOSIS MEDICAL PROFESSIONALS SAY ALTHOUGH THE DANGERS OF BREATHING SILICA DUST HAVE BEEN KNOWN FOR CENTURIES OSHA'S NANCY NEWMAN WHO SUPERVISED A COMMERCIAL STEEL INSPECTION AFTER MR GRIFFIN DIED SAYS NOBODY WHO WORKED THERE HAD ANY IDEA HOW BAD IT REALLY WAS FROM THE WORKERS TO THE OWNER TO HIS SONS NOBODY HAD A CLUE THAT THE SILICA WAS MAKING THE EMPLOYEES SO SICK EMPLOYEES WERE TOLD MR GRIFFIN HAD DIED OF TUBERCULOSIS AN EARLY DIAGNOSIS OF HIS SYMPTOMS ACCORDING TO GOVERNMENT INSPECTORS' REPORTS THE COMPANY CONTINUED USING TONS OF SILICA A WEEK IN BAGS WITH CLEAR WARNINGS ONE REPORT SAYS IN EARLY 1992 HEALTH OFFICIALS FOUND A PILE OF SILICA SAND AND DUST THAT STOOD AS HIGH AS SIX FEET AND COVERED A 15BY50FOOT AREA ON THE FACTORY FLOOR THEY ALSO FOUND ACCORDING TO THEIR REPORTS EMPLOYEES EXPOSED TO SILICA DUST WITHOUT PROPER RESPIRATORS OR PROTECTIVE GEAR THE GOVERNMENT ADMINISTERED CHEST XRAYS TO 16 CURRENT AND FORMER EMPLOYEES AND FIVE HAD LUNG TISSUE INDICATING SILICADUST REACTION ONE OF THE FIVE 37YEAROLD WALLACE OVERBY HAD SYMPTOMS OF A SEVERE OFTENFATAL FORM OF SILICOSIS ACCORDING TO GOVERNMENT MEDICAL REPORTS AND HIS LAWYERS MR OVERBY FILED A LAWSUIT LAST YEAR IN STATE COURT IN CLEVELAND THAT ALLEGES COMMERCIAL STEEL INTENTIONALLY CAUSED HIM PERMANENT TOTAL DISABILITY THE COMPANY DENIES THE CHARGES HAROLD SEITZ COMMERCIAL STEEL'S 79YEAROLD OWNER COMPARES THE COMPANY'S PROBLEMS TO OTHER WARNINGS PEOPLE IGNORE SUCH AS LABELS ON YOUR CIGARETTES HE REFUSES TO COMMENT FURTHER CITING THE LITIGATION IN A SETTLEMENT WITH THE GOVERNMENT COMMERCIAL STEEL WHILE NOT ADMITTING TO ANY ALLEGATIONS AGREED TO PAY A 25000 PENALTY ABATE VIOLATIONS AND BEGIN MEDICAL MONITORING AND TREATMENT FOR CURRENT AND FORMER EMPLOYEES IT ALSO SWITCHED TO A LESS TOXIC ABRASIVE EVEN A SMALL COMPANY'S INFORMALITY WHICH MANY PEOPLE LIKE CAN LEAD TO UNEXPECTED DANGERS AKIRA KON LOVED THE CREATIVE ATMOSPHERE AT ALTURA STUDIOS INC A TINY WOODWORKING BUSINESS IN NEW YORK CITY AND SWORE HE WOULD NEVER WORK ON A BIG FURNITURE MAKER'S ASSEMBLY LINE IN OCTOBER 1992 MR KON WAS HELPING A COWORKER GET A 4BY8FOOT MAPLE PANEL FROM A STACK LEANING AGAINST A WALL WHEN PULLED OFF THE WALL AND BALANCING ON EDGE THE HEAVY PANELS FELL AND STRUCK MR KON HE HIT HIS HEAD ON A STEEL TABLE AND DIED SHORTLY AFTERWARD ALTURA'S OWNER JEFF BEHNKE SAYS THAT IF HE HAD SEEN THE MEN TRYING TO MOVE THE PANELS HE WOULD HAVE INSISTED ON HAVING A THIRD PERSON HELP OUT BUT MR BEHNKE WAS IN HIS OFFICE AND HIS PRODUCTION MANAGER WASN'T AVAILABLE THERE'S NO WAY I CAN BE OUT IN THE SHOP FOLLOWING EVERYBODY AROUND AND SAYING THIS LOOKS A LITTLE DANGEROUS' MR BEHNKE SAYS STEVEN WILKES AN OSHA COMPLIANCE OFFICER WHO INVESTIGATED THE ACCIDENT SAYS THE TYPICAL SMALLBUSINESS OWNER ACCEPTS RESPONSIBILITY FOR SAFETY BUT WEARS TOO MANY HATS TO PAY SUFFICIENT ATTENTION YOU HAVE WORKMEN WORKING BY THEMSELVES AND NOBODY HAS THE TIME TO WATCH THEM HE SAYS WHAT'S MORE COMPETITIVE PRESSURES CAN CAUSE SMALL BUSINESSES TO AVOID INVESTMENTS IN SAFETY IN NOVEMBER 1992 THREE ST LOUIS WORKMEN WERE USING LACQUER THINNER TO REFINISH THE METAL INSIDE A CLOSED ELEVATOR WHEN ACCORDING TO A POLICE REPORT A RAG TOUCHED EXPOSED WIRES THE ELEVATOR CAUGHT FIRE AND TWO DIED THE OTHER COMPANIES WHO DO NOT TAKE ELEVATOR DOORS OFF WOULD GET THE JOBS AND OUR EMPLOYEES WOULD BE OUT OF WORK SAYS A COMPANY FILING WITH AN ADMINISTRATIVE REVIEW COMMISSION THE FIRM IS CONTESTING OFFICIAL ACCOUNTS OF THE ACCIDENT CHEMICAL HAZARDS ARE COMMON PROBLEMS A 1991 GENERAL ACCOUNTING OFFICE SURVEY FOUND THAT 58 OF EMPLOYERS WITH FEWER THAN 20 WORKERS WEREN'T COMPLYING WITH SOME ASPECT OF FEDERAL REQUIREMENTS THAT THEY IDENTIFY SUCH HAZARDS AND INFORM EMPLOYEES ONLY 20 OF EMPLOYERS WITH 500 OR MORE WORKERS FAILED TO COMPLY BUT SMALL BUSINESSES OFTEN SKIMP ON SAFETY INFORMATION AND TRAINING ACROSS THE BOARD THAT CAN BE ESPECIALLY RISKY BECAUSE SUCH COMPANIES RELY MORE HEAVILY THAN DO BIG COMPANIES ON WORKERS WHO ARE YOUNG OR SPEAK LITTLE ENGLISH IN FEBRUARY 1992 EVERARDO RANGELJASSO WAS CRUSHED TO DEATH AT DENTON PLASTICS INC A PORTLAND ORE PLASTICS RECYCLER ACCORDING TO AN OSHA REPORT THE 17YEAROLD WAS BACKING UP A FORKLIFT WITH A BOX HIGH ON ITS FORK WHEN HE CUT THE REAR WHEELS SHARPLY AND THE VEHICLE TIPPED OVER A POSTED SIGN IN ENGLISH WARNED FORKLIFT DRIVERS TO WEAR SEAT BELTS BUT THE MEXICAN YOUTH DIDN'T SPEAK ENGLISH INSPECTORS REPORTED ONE INSPECTOR SURMISED THAT A SEAT BELT MIGHT HAVE SAVED HIS LIFE EMPLOYEES TOLD INVESTIGATORS THAT HISPANIC WORKERS LEARNED THEIR JOBS THROUGH HAND SIGNALS AND BODY GESTURES THEY ALSO SAID MANAGEMENT TOLD UNTRAINED WORKERS TO RUN FORKLIFTS THOUGH MANAGEMENT CONTENDED THAT ONLY TRAINED WORKERS WERE PERMITTED TO DO SO AN INVESTIGATOR'S REPORT NOTES MR RANGELJASSO HADN'T RECEIVED ANY FORKLIFT TRAINING AND LACKED A DRIVER'S LICENSE AND A JUVENILE'S WORK PERMIT ACCORDING TO OFFICIAL SOURCES THE COMPANY DISPUTING THE OFFICIAL ACCOUNTS IS CONTESTING A 10000 FEDERAL FINE FOR ALLEGEDLY PERMITTING A MINOR TO OPERATE A FORKLIFT AND A 64805 PENALTY FOR ALLEGED VIOLATIONS OF STATE HEALTH AND SAFETY REGULATIONS THE COMPANY AND TWO PRINCIPALS ALSO HAVE PLEADED NOT GUILTY IN A PORTLAND STATE COURT TO A TWOCOUNT INDICTMENT STEMMING FROM THE ACCIDENT SEPARATELY THE COMPANY AGREED TO PAY 80000 TO SETTLE A STATE COMPLAINT ON CHILDLABOR AND OVERTIME VIOLATIONS MANY COMPANIES ESCAPE SCRUTINY ALTOGETHER CONGRESS EXEMPTS EMPLOYERS IN LOWHAZARD INDUSTRIES WITH 10 OR FEWER WORKERS FROM REGULAR OSHA INSPECTIONS OSHA IN PRACTICE ALSO EXEMPTS FROM REGULAR INSPECTIONS SMALL COMPANIES IN HIGHLY HAZARDOUS INDUSTRIES OTHER THAN CONSTRUCTION MOREOVER SMALL EMPLOYERS CITED FOR STANDARD VIOLATIONS ROUTINELY GET DISCOUNTS ON THEIR OSHA PENALTIES OFTEN OSHA STEPS IN ONLY AFTER A TRAGEDY LAKES ILLUSTRATED INC A MT VERNON MO MAKER OF ELECTRONIC FISHING GEAR WAS FIRST INSPECTED IN 1992 AFTER A PRESSURIZED 55GALLON LUBRICATING DRUM EXPLODED AND KILLED A 28YEAROLD TECHNICIAN WILLIAM N COEN OSHA CITED THE COMPANY FOR NUMEROUS SERIOUS VIOLATIONS FORMER EMPLOYEES SAY WORKING CONDITIONS AT THE PLANT HAD BEEN UNSAFE FOR YEARS THEY RECALL EMPLOYEES USING OPEN CONTAINERS OF HAZARDOUS SOLVENTS FOR CLEANING PARTS POOR VENTILATION PILES OF BOXES BLOCKING AN EXIT AN OVERHEAD WEIGHTBEARING CABLE THAT OFTEN BROKE AND POORLY GROUNDED ELECTRICAL EQUIPMENT JEAN COATES A FORMER EMPLOYEE SAYS THE CONDITIONS CONTRASTED SHARPLY WITH THOSE AT BIG PLANTS WHERE SHE WORKED PREVIOUSLY SINCE THE ACCIDENT JOSEPH MEIRICK THE COMPANY'S OWNER SAYS IT HAS COMPLIED WITH OSHA REQUIREMENTS IT STARTED SAFETY TRAINING SET UP A SAFETY COMMITTEE AND AGREED TO PAY 9000 IN REDUCED PENALTIES MR MEIRICK ADMITS THAT BEFORE THE ACCIDENT HIS COMPANY DIDN'T SPEND AS MUCH TIME EFFORT OR MONEY ON SAFETY MEASURES AS IT SHOULD HAVE GETTING OUT NEW LINES OF FISHING GEAR TOOK PRIORITY HE SAYS EDWARD P FOLDESSY DID COMPUTER ANALYSIS OF GOVERNMENT DATA FOR THIS ARTICLE 9402030064 940203 HEARD ON THE STREET FEARED REDUCTION IN SYNTEX'S TASTY DIVIDEND COULD BE BITTER PILL FOR DRUG FIRM'S INVESTORS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILL SYNTEX'S DIVIDEND GO UNDER THE KNIFE YIELDSTARVED INVESTORS HAVE BEEN SNAPPING UP SHARES OF THE PALO ALTO CALIF DRUG COMPANY WHICH OFFERS A DIVIDEND YIELD OF 68 FOR NOW ANALYSTS SAY THERE'S A STRONG CHANCE THE MOUTHWATERING YIELD WON'T LAST I THINK THEY'LL PROBABLY CUT THEIR DIVIDEND SOMETIME OVER THE NEXT YEAR OR SO SAYS JACK LAMBERTON A DRUG ANALYST WITH NATWEST SECURITIES WE WOULD ARGUE THAT THE CHANCE OF A DIVIDEND CUT IS 5050 SAYS WERTHEIM SCHRODER ANALYST JONATHAN GELLES EVEN FANS OF THE STOCK DON'T HOLD OUT A LOT OF HOPE THERE'S EVERY POSSIBILITY THAT THE DIVIDEND WILL BE REDUCED SAYS WARREN ISABELLE MANAGER OF THE PIONEER CAPITAL GROWTH FUND WITH 230 MILLION IN ASSETS THE COMPANY ITSELF WON'T SAY WHETHER THE DIVIDEND IS SAFE AT A RECENT MEETING WITH ANALYSTS SYNTEX CHAIRMAN PAUL FREIMAN DECLINED TO SPECULATE ABOUT FUTURE DIVIDEND DECLARATIONS SAYING THAT THE DIVIDEND IS THE RESPONSIBILITY OF THE BOARD OF DIRECTORS SYNTEX ISN'T THE ONLY DRUG COMPANY THAT SOME THINK MAY CUT ITS DIVIDEND ANALYSTS SPECULATE THAT MARION MERRELL DOW AND UPJOHN COULD ALSO TRIM THEIR QUARTERLY PAYOUTS WE DON'T EVER SPECULATE ON FUTURE DECISIONS OF THAT SORT RESPONDS RICHARD JOHNSON A SPOKESMAN FOR MARION MERRELL DOW ENHANCING SHAREHOLDER VALUE THROUGH A COMBINATION OF STOCKPRICE APPRECIATION AND DIVIDEND YIELD WILL REMAIN ONE OF OUR TOP PRIORITIES SAYS UPJOHN SPOKESMAN JOHN LAMBRECHTS BUT AMONG HEALTHCARE COMPANIES SYNTEX IS THE MOST VULNERABLE TO A DIVIDEND CUT SAY ANALYSTS THAT DOESN'T AUGUR HAPPY TIMES FOR THE YIELDHUNGRY SMALL INVESTORS WHO HAVE BEEN BUYING SYNTEX SHARES I THINK THERE ARE PLENTY OF PEOPLE WHO OWN THE STOCK WHO DON'T THINK THERE'S GOING TO BE A DIVIDEND CUT AND JUST AREN'T PAYING ATTENTION SAYS NATWEST'S MR LAMBERTON AND WHEN THEY CUT THE DIVIDEND I THINK THEY'LL CUT IT SO AGGRESSIVELY THAT THEY MAY SURPRISE EVEN THOSE WHO ARE EXPECTING A CUT MR LAMBERTON THINKS THE COMPANY MIGHT CUT THE 104 ANNUAL DIVIDEND IN HALF SO THAT IT GETS ALL THE BAD NEWS OUT OF THE WAY IN ONE FELL SWOOP THE WORST THING WOULD BE TO HAVE TO MAKE TWO DIVIDEND CUTS HE SAYS IF THEY HAD A 50 DIVIDEND CUT I THINK YOU'D HAVE A 13 STOCK AND MAYBE LOWER SYNTEX CLOSED YESTERDAY AT 15 3/8 UNCHANGED MR LAMBERTON CONCEDES THAT SYNTEX COULD MAINTAIN ITS DIVIDEND BY DIPPING INTO THE COMPANY'S CASH RESERVES AND DRAWING HEAVILY ON ITS CASH FLOW BUT THAT STRATEGY WOULD CARRY A STEEP PRICE IN TERMS OF SYNTEX'S FUTURE GROWTH THEY DO HAVE THE MONEY TO COVER THE DIVIDEND IF THEY REALLY WANT TO SAYS MR LAMBERTON THE QUESTION IS WHAT ARE THEIR PRIORITIES THEY COULD MAINTAIN THEIR DIVIDEND BUT THEY'D BE UNDERINVESTING IN THE REST OF THE BUSINESS MR LAMBERTON FIGURES THAT SYNTEX HAS ENOUGH CASH FLOW TO COVER ITS DIVIDEND IN THE FISCAL YEAR ENDING IN JULY BUT HE FORECASTS THAT CASH FLOW WILL FALL SHORT OVER THE NEXT TWO FISCAL YEARS BEFORE RECOVERING IN THE FISCAL YEAR ENDING JULY 1997 HE ATTRIBUTES THE CASHFLOW CRUNCH TO DECLINING SALES OF NAPROSYN AND ANAPROX SYNTEX'S TWO ARTHRITICPAIN RELIEVERS THAT LOST PATENT PROTECTION ON DEC 21 MR LAMBERTON ESTIMATES THAT US SALES OF THESE TWO PRODUCTS WHICH NOW FACE COMPETITION FROM GENERIC ALTERNATIVES ACCOUNTED FOR HALF OF SYNTEX'S EARNINGS IN THE 1993 FISCAL YEAR IT'S VERY UNLIKELY THAT THE STOCK WILL RISE OF ITS OWN ACCORD MR LAMBERTON SAYS THE RISK IN NOT OWNING SYNTEX IS THAT THEY GET TAKEN OVER BY ANOTHER COMPANY I THINK THAT'S UNLIKELY BUT A TAKEOVER IS WHAT SOME BULLS ARE BETTING ON THE REASON WE BOUGHT THE STOCK IS NOT FOR ITS LONGTERM PROSPECTS SAYS PIONEER'S MR ISABELLE WE WERE CLEARLY LOOKING FOR A CONSOLIDATION PLAY HERE I DON'T THINK THIS IS A COMPANY WHOSE NAME YOU'LL SEE AS A STANDALONE NAME FIVE YEARS FROM NOW ANALYST DAVID SAKS HOWEVER ISN'T WILLING TO BET ON A TAKEOVER FOR 10 YEARS I'VE HEARD THAT STORY SAYS MR SAKS OF GRUNTAL & CO THE REASON WHY YOU BUY A COMPANY IS BECAUSE YOU LIKE WHAT YOU SEE WHY BUY A COMPANY THAT'S GOT A CLEARCUT DOWNWARD FINANCIAL OUTLOOK BECAUSE SYNTEX'S FUTURE EARNINGS ARE LIKELY TO BE WEAK MR SAKS RECKONS THE STOCK IS A POOR INVESTMENT WHETHER OR NOT THE DIVIDEND IS CUT I THINK THE YIELD IS TEMPTING TO SOME HE SAYS BUT IF THE STOCK GOES DOWN 5 WHAT'S THE WORTH OF A 68 DIVIDEND YEAR ENDED JULY 31 1993 FIRST QUARTER OCT 31 1993 9402030063 940203 A SPEECH CODE FOR LAWYERS BY RICHARD F DUNCAN IN THE SPIRIT OF THE SILLY BRITISH HEADMISTRESS WHO RECENTLY DECIDED THAT SHAKESPEARE'S ROMEO AND JULIET IS INAPPROPRIATE FOR HER STUDENTS BECAUSE IT'S A TOTALLY HETEROSEXUAL STORY THE AMERICAN BAR ASSOCIATION IS POISED TO ADOPT A POLITICALLY CORRECT SPEECH CODE FOR LAWYERS AT ITS MIDYEAR MEETING IN KANSAS CITY MO NEXT WEEK THE ABA STANDING COMMITTEE ON ETHICS AND PROFESSIONAL RESPONSIBILITY WANTS TO AMEND THE MODEL RULES OF PROFESSIONAL CONDUCT TO PROHIBIT LAWYERS FROM EXPRESSING CERTAIN POINTS OF VIEW SPECIFICALLY THE PROPOSED RULE PROVIDES THAT IT IS PROFESSIONAL MISCONDUCT FOR A LAWYER TO KNOWINGLY MANIFEST BY WORDS OR CONDUCT IN THE COURSE OF REPRESENTING A CLIENT BIAS OR PREJUDICE BASED UPON RACE SEX RELIGION NATIONAL ORIGIN DISABILITY AGE SEXUAL ORIENTATION OR SOCIOECONOMIC STATUS THIS PROPOSAL VIOLATES NEARLY EVERY PRINCIPLE OF FREEDOM OF SPEECH UNDER THE CONSTITUTION IT RESTRICTS POLITICAL SPEECH AT THE VERY CORE OF THE FIRST AMENDMENT IT CENSORS SPEECH ON THE BASIS OF VIEWPOINT AND IT IS CHILLINGLY VAGUE AND OVERBROAD SUPPOSE SEVERAL ATTORNEYS ARE REPRESENTING CLIENTS AT THE CLOSING OF A BUSINESS TRANSACTION DURING A SHORT LULL IN THE MEETING ATTORNEY A ASKS TWO OF HIS COLLEAGUES WHAT THEY THINK OF A GAYRIGHTS LAW CURRENTLY BEFORE THE STATE LEGISLATURE ATTORNEY B SAYS HE FAVORS THE LEGISLATION BECAUSE GAYS ARE AN OPPRESSED MINORITY AND ATTORNEY C SAYS HE OPPOSES THE LEGISLATION BECAUSE HOMOSEXUALITY IS IMMORAL AND UNNATURAL WHEN I POSED THIS HYPOTHETICAL TO GEORGE KUHLMAN COUNSEL TO THE ABA COMMITTEE THAT DRAFTED THE SPEECH CODE HE SAID THAT ATTORNEY C'S WORDS MIGHT BE A VIOLATION OF THE RULE ATTORNEY B'S STATEMENT WHICH IS THE POLITICALLY CORRECT ONE ACCORDING TO THE ABA IS NOT A VIOLATION AS MR KUHLMAN CONCEDED THE POTENTIAL REACH OF THE RULE IS PRACTICALLY LIMITLESS SUPPOSE THAT IN OUR HYPOTHETICAL THE ATTORNEYS ARE DISCUSSING ECONOMIC POLICY INSTEAD OF GAY RIGHTS IF ATTORNEY B CONDEMNS TAX CUTS THAT FAVOR ONLY THE GREEDY RICH AND ATTORNEY C COMPLAINS THAT WELFARE SUBSIDIZES THE IRRESPONSIBLE POOR BOTH OF THEM MIGHT FIND THEMSELVES IN HOT WATER FOR HAVING EXPRESSED BIAS ON THE BASIS OF SOCIOECONOMIC STATUS SUCH WILL BE THE RISKS OF PRACTICING LAW IN THE SENSITIVE '90S MOREOVER THE CONSEQUENCES FOR ATTORNEYS WHO EXPRESS THE WRONG OPINIONS ARE SIGNIFICANT UNDER THE NEW REGIME AS DAVID ISBELL CHAIRMAN OF THE ABA'S STANDING COMMITTEE ON ETHICS AND PROFESSIONAL RESPONSIBILITY NOTED IN A LETTER TO THE HOUSE OF DELEGATES WHAT WE ARE SAYING IS THAT A FAILURE TO COMPLY WITH THAT POLICY SHOULD RESULT IN LAWYER SANCTIONS INCLUDING SUSPENSION FROM THE PRACTICE OF LAW THAT OUGHT TO GET THEIR ATTENTION LIKE MOST PC NONSENSE THE PROPOSED ABA RULE IS WELLINTENDED WE CAN ALL AGREE THAT LAWYERS LIKE EVERYONE ELSE SHOULD STRIVE FOR CIVILITY AND TOLERANCE THIS IS PARTICULARLY TRUE WHEN LAWYERS PARTICIPATE IN JUDICIAL PROCEEDINGS BECAUSE OF THE SOCIETAL GOAL OF ENSURING FAIR AND IMPARTIAL TRIALS BUT THIS INTEREST CALLS FOR ONLY A NARROW RESTRICTION ON LAWYERS' SPEECH INDEED THE MODEL CODE OF JUDICIAL CONDUCT ALREADY PLACES UPON JUDGES THE DUTY TO REQUIRE LAWYERS PRACTICING BEFORE THEM TO REFRAIN FROM EXPRESSING BIAS OR PREJUDICE AGAINST PARTIES WITNESSES COUNSEL OR OTHERS THE PROPOSED ABA SPEECH CODE SWEEPS FAR BEYOND THE COURTROOM AND USES A HATCHET TO PERFORM SURGERY THAT CALLS FOR A LASER SINCE ATTORNEYS SPEND MOST OF THEIR DAY AT THE OFFICE REPRESENTING CLIENTS THE RULE OBVIOUSLY REGULATES AND CHILLS A GREAT DEAL OF SPEECH OF THE TYPICAL LAWYER WE CAN SHRUG AND LAUGH AT THE HEADMISTRESS WHO BANNED THE BARD FOR HIS HETEROSEXISM BUT IF THE ABA WISHES TO BE TAKEN MORE SERIOUSLY IT WOULD DO WELL TO REAFFIRM ITS COMMITMENT TO FREEDOM OF SPEECH BY REJECTING THE PROPOSED LAWYER SPEECH CODE AS ALWAYS THE PROPER RESPONSE TO OPINIONS ONE FINDS OFFENSIVE IS COUNTERSPEECH NOT CENSORSHIP SADLY THIS IS A LESSON THAT THAT THE ABA IS IN DANGER OF FORGETTING MR DUNCAN IS A PROFESSOR AT THE UNIVERSITY OF NEBRASKA COLLEGE OF LAW 9402030061 940203 MUTUAL FUNDS EMERGINGMARKETS INDEX FUND WILL BE OFFERED BY VANGUARD BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE THAT WILL SHARPEN COMPETITION IN THE HOT REALM OF EMERGINGMARKETS MUTUAL FUNDS THE 131 BILLION FUND COMPANY VANGUARD GROUP IS PREPARING TO LAUNCH A CHEAPER VERSION IT'S CALLED AN EMERGINGMARKETS INDEX FUND AND IT IS SURE TO STIR UP THE MUTUALFUND INDUSTRY THAT'S BECAUSE VANGUARD'S NEW FUND WILL UNDOUBTEDLY COST FAR LESS TO RUN THAN MOST OF THE EXISTING FUNDS TRYING TO BEAT THE MARKETS IN EXOTIC COUNTRIES FROM ARGENTINA TO THAILAND AS AN INDEX FUND VANGUARD'S NEW ENTRY WILL SCOOP UP A BASKET OF STOCKS IN FASTGROWING DEVELOPING NATIONS THEN HOLD THEM IT'S A WAY TO KEEP TRADING AND EXPENSES TO A MINIMUM INDEX FUNDS BUY THE SAME STOCKS AS THOSE IN A PARTICULAR STOCKMARKET INDEX AND THEN SIMPLY HANG ON FOR THE RIDE THE VANGUARD FUND COULD PROVE POPULAR MANY INVESTORS BELIEVE THAT TRYING TO BEAT STOCK MARKETS IS A LOSING GAME FOR ALL BUT A FEW MONEY MANAGERS ASKED ABOUT THE NEW FUND WHICH WAS DISCLOSED BY PEOPLE WITH TIES TO THE FUND INDUSTRY VANGUARD SPOKESMAN BRIAN MATTES SAID WE HAVE FILED NOTHING ALONG THOSE LINES WHATSOEVER I CANNOT COMMENT ANY FURTHER ABOUT FUTURE PLANS WITH RESPECT TO ANY FUND OFFERING BUT PEOPLE IN THE FUND INDUSTRY EXPECT THE NEW FUND WILL INVEST LARGELY IN STOCKS IN THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX SOME LOOK FOR A FEW ADDITIONS SUCH AS SINGAPORE WHICH STRADDLE THE LINE BETWEEN MATURE AND DEVELOPING MARKETS THE NEW FUND OFFERING WILL BRING NORMALLY CAUTIOUS VANGUARD INTO SPECULATIVE TERRAIN MANY INVESTMENT ADVISERS RECOMMEND THAT LONGTERM PORTFOLIOS HOLD A LEAVENING OF EMERGING MARKETS BUT THESE MARKETS ARE SUBJECT TO WILD ZIGZAGS IN PRICE TAKE MALAYSIA ONE OF THE BEST STOCK MARKETS IN THE WORLD LAST YEAR IT HAS SINCE BECOME A SUBMERGING MARKET LOSING 151 IN DOLLAR TERMS IN JANUARY ACCORDING TO THE DOW JONES WORLD STOCK INDEX AS RECENTLY AS LAST YEAR VANGUARD EXECUTIVES TALKED ABOUT THE RISKS OF MUTUAL FUNDS IN EMERGING MARKETS IF THERE'S A PANIC AND HOLDERS FLEE FUND MANAGERS CAN BE FORCED TO SELL STOCKS INDISCRIMINATELY HURTING THE REMAINING FUND SHAREHOLDERS MOREOVER BROKERAGE AND TRADING COSTS TEND TO BE MUCH HIGHER IN EMERGING MARKETS THAN IN THE US BUT TRANSACTION COSTS MAY TURN OUT TO BE AN ADVANTAGE FOR AN INDEX FUND WHOSE BUYANDHOLD STRATEGY ELIMINATES HEAVY TRADING US INVESTORS HAVE BEEN POURING MONEY INTO EMERGING MARKETS IN THE NINE MONTHS THROUGH SEPTEMBER US INVESTORS BOUGHT 8 BILLION MORE THAN THEY SOLD OF EMERGINGMARKETS STOCKS AND MUTUAL FUNDS ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION THIS ONSLAUGHT BEAT THE PRIOR FULLYEAR RECORD OF 56 BILLION SET IN 1992 STOCK FUNDS INVESTING IN BROADLY DIVERSIFIED EMERGING MARKETS HAD A TOTAL RETURN INCLUDING DIVIDENDS OF 6610 ON AVERAGE LAST YEAR ACCORDING TO LIPPER ANALYTICAL SERVICES WHICH TRACKS MUTUALFUND PERFORMANCE BUT THE MORGAN STANLEY EMERGINGMARKETS INDEX DID EVEN BETTER WITH A GAIN OF 7484 IN 1993 BEATING SEVEN OF THE 10 OPENEND FUNDS WITH FULLYEAR RECORDS TRACKED BY LIPPER THE LIPPER DATA DON'T INCLUDE PUBLICLY TRADED OR CLOSED END FUNDS FUND GROUPS ARE TRIPPING OVER THEMSELVES INTRODUCING NEW FUNDS LAST YEAR THERE WERE 39 REGISTRATIONS FILED WITH REGULATORS FOR OPENEND AND CLOSEDEND EMERGING MARKET MUTUAL FUNDS ACCORDING TO MUTUAL FUND ADVANCE A WASHINGTON DC NEWSLETTER AND A UNIT OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER ONLY 12 REGISTRATIONS WERE FILED IN 1992 ALMOST ALL EMERGINGMARKETS STOCK FUNDS ARE ACTIVE MANAGERS MEANING THAT THEY DO RESEARCH TO TRY TO PICK BETTERTHANAVERAGE STOCKS DIVERSIFIED EMERGINGMARKETS FUNDS AS OPPOSED TO REGIONAL ASIAN OR LATIN AMERICAN FUNDS TRACKED BY LIPPER LAST YEAR COST 196 A YEAR TO RUN FOR EVERY 100 IN FUND ASSETS AT THE HIGH END FIDELITY EMERGING MARKETS CHARGED 260 PER 100 IN ASSETS ALMOST DOUBLE THE 134 AVERAGE FOR ALL DIVERSIFIED STOCK FUNDS INVESTING PRIMARILY IN THE US INVESTING OVERSEAS COSTS MORE THAN INVESTING IN THE US BUT THE FORTHCOMING VANGUARD FUND WILL MOST LIKELY COST CONSIDERABLY LESS THAN EVEN THE AVERAGE US STOCK FUND TO RUN THE EXACT COST ISN'T KNOWN BUT IT PROBABLY WON'T BE AS CHEAP AS THE 32 CENTS PER 100 IN ASSETS CHARGED BY VANGUARD'S PACIFIC INDEX FUND MOREOVER ALTHOUGH THE NEW FUND PROBABLY WON'T IMPOSE A SALES CHARGE OR LOAD IT WILL LIKELY CHARGE A ONETIME PORTFOLIO TRANSACTION FEE TO NEW INVESTORS THAT FEE ISN'T TECHNICALLY A LOAD AS IT DOESN'T GO TO VANGUARD IT GETS PAID TO THE FUND ITSELF TO COMPENSATE EXISTING SHAREHOLDERS FOR THE COSTS OF BUYING STOCK IN THINLY TRADED MARKETS VANGUARD CHARGES A 1 FEE FOR ITS EXISTING INTERNATIONAL INDEX FUNDS AND IT'S CONCEIVABLE THAT THE FEE MIGHT BE HIGHER FOR THE EMERGINGMARKETS FUND SOME INSTITUTIONS ALREADY INVEST IN EXOTIC LOCALES STATE STREET BANK RUNS INDEXED EMERGINGMARKET ACCOUNTS FOR INSTITUTIONAL INVESTORS AND IT CHARGES 50 CENTS PER 100 IN ASSETS FOR THOSE WITH AT LEAST 5 MILLION TO INVEST STATE STREET HAS FILED TO BRING OUT A QUASIINDEX MUTUAL FUND FOR SMALL INVESTORS SEVEN SEAS EMERGING MARKETS BUT ITS PERFORMANCE WILL DIFFER FROM INDEX RETURNS BECAUSE THE MANAGER WILL TRY TO PICK THE COUNTRIES WITH THE BEST OUTLOOKS RATHER THAN INVESTING IN THEM BY THEIR WEIGHT IN AN INDEX DIMENSIONAL FUND ADVISERS A BIG INDEXFUND MANAGER RUNS AN EMERGINGMARKETS FUND FOR AN INSTITUTIONAL INVESTOR THE FUND STAYS OUT OF CERTAIN EMERGING MARKETS WHERE TRADING APPEARS TO BE RIGGED AGAINST FOREIGN INVESTORS SAYS REX SINQUEFIELD CHIEF INVESTMENT OFFICER AT DFA WITHOUT BEING SPECIFIC HE SAID IN SOME MARKETS BROKERS ARE JUST WAITING FOR THE NEXT VICTIM THERE ARE A LOT OF GAMES THAT CAN BE PLAYED AT YOUR EXPENSE EMERGINGMARKET STOCK FUNDS HAD A GREAT YEAR LAST YEAR BUT MANY OF THEM FAILED TO BEAT THE MORGAN STANLEY INDEX A COMMON INDEX OF EMERGING MARKETS BELOW TOTAL RETURNS INCLUDING PRICE MOVEMENTS AND DIVIDENDS FOR FUNDS IN EXISTENCE DURING ALL OF 1993 9402030060 940203 BUSINESS BRIEF GEORGIAPACIFIC CORP CONCERN TO SPEND 16 BILLION TO UPGRADE ITS OPERATIONS GEORGIAPACIFIC CORP SAID IT WILL SPEND 16 BILLION DURING THE NEXT TWO YEARS TO UPGRADE AND ENHANCE ITS WOODPRODUCTS PULP AND PAPER OPERATIONS THE ATLANTA FORESTPRODUCTS COMPANY SAID IT PLANS TO INVEST MOST OF THE MONEY IN ITS WOODPRODUCTS BUSINESSES ABOUT 900 MILLION WILL BE SPENT THIS YEAR WITH THE FUNDS COMING FROM OPERATIONS AND ASSET SALES IN 1993 CAPITAL SPENDING TOTALED 467 MILLION ANALYSTS GENERALLY APPLAUDED THE NEWS SAYING NOW IS AN IDEAL TIME FOR THE COMPANY TO MAKE MORE CAPITAL INVESTMENTS WITH THE TIMBER SHORTAGE IN THE PACIFIC NORTHWEST THERE ARE OPPORTUNITIES FOR COMPANIES LIKE GEORGIAPACIFIC WITH A LARGE SOUTHERN BASE TO PICK UP SOME OF THE SLACK AND DO IT PROFITABLY SAID CHIP DILLON OF SALOMON BROTHERS 9402030059 940203 BUSINESS BRIEF GENERAL MOTORS CORP JUDGE ORDERS RESTORATION OF RETIREE HEALTH BENEFITS A FEDERALCOURT JUDGE RULED YESTERDAY THAT GENERAL MOTORS CORP MUST RESTORE RETIREE HEALTHCARE BENEFITS THAT WERE REDUCED OR ELIMINATED IN THE 1980S THE RULING BY JUDGE JOHN FEIKENS IN US DISTRICT COURT AFFECTS SOME 45000 RETIREES A GM SPOKESMAN SAID THE COMPANY WAS CONSIDERING AN APPEAL AND THAT IT WAS PREMATURE TO SPECULATE ABOUT THE POSSIBLE COSTS OF THE RULING WE BELIEVE WE DO HAVE THE RIGHT TO AMMEND MODIFY OR CHANGE OUR BENEFITS PLAN RICHARD F O'BRIEN GM'S VICE PRESIDENT OF CORPORATE PERSONNEL SAID IN A PREPARED STATEMENT MR O'BRIEN CALLED GM BENEFITS AMONG THE BEST IN ALL OF INDUSTRY THE SUIT CHARGED THAT THE DETROIT COMPANY BREACHED CONTRACTUAL OBLIGATIONS TO PROVIDE LIFETIME HEALTH BENEFITS TO RETIREES GM STOCK ROSE 50 CENTS OR 08 TO CLOSE AT 6150 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9402030058 940203 LEISURE & ARTS THE GALLERY REVIVING THE HOLOCAUST SURVIVING THE QUAKE BY DAVID LITTLEJOHN SINCE ITS OPENING A YEAR AGO THE MUSEUM OF TOLERANCE IN WEST LOS ANGELES HAS ATTRACTED NEARLY 300000 VISITORS AT 750 PER ADULT HEAD IT HAS ALSO ATTRACTED ALONG WITH PREDICTABLE PRAISE FOR ITS GOOD INTENTIONS AND INGENIOUS TECHNOLOGY CRITICISM FOR WHAT SOME SEE AS A TRIVIALIZING DISNEYLAND APPROACH TO ITS THREE CENTRAL THEMES RACIAL PREJUDICE GENERALLY ANTISEMITISM SPECIFICALLY AND THE NAZIS' ATTEMPT TO EXTERMINATE ALL THE JEWS OF EUROPE THE MUSEUM EXPERIENCE IS DESIGNED SO THAT ONE GRADUATES FROM THE FIRST THEME TO THE SECOND TO THE THIRD BUT IT IS CLEARLY THE THIRD THE HOLOCAUST THAT DOMINATES THE VISITOR'S TIME AND ATTENTION AS IT DID THE INTENTIONS OF THE MUSEUM'S CREATORS AT THE SIMON WIESENTHAL CENTER NEXT DOOR THE MUSEUM'S HEBREW NAME IS BEIT HASHOAH OR HOUSE OF THE HOLOCAUST THE CARPING JUDGMENTS HAVE COME FROM CRITICS WHO FIND THE LOS ANGELES MUSEUM'S APPROACH VULGAR AND KITSCHY BIGOTRY SOUPED UP FOR THE MTV GENERATION IT WAS CALLED BY US NEWS AND WORLD REPORT DESPITE SOME DUBIOUS AUDIOVISUAL TECHNIQUES THE MUSEUM'S MISSION SHOULD NOT BE DISMISSED BY SUCH SIMPLE INSULTS IN THE DARK STARK CONCRETE FINAL BUNKER WHICH INEVITABLY SUGGESTS A GAS CHAMBER VISITORS STAND OR SIT ON A HARD SLAB TO SEE AND HEAR INDIVIDUAL HORROR STORIES TOLD ON EIGHT WALLMOUNTED MONITORS AS THE STORIES END DOORS OPEN INTO A WELCOME WANLY HOPEFUL LIGHT THIS GRIM CHAMBER HAS ROOM FOR ABOUT 25 PEOPLE AND TOURS OF THE MUSEUM ARE ORGANIZED IN GROUPS OF THIS SIZE RABBI MARVIN HIER THE FOUNDING DIRECTOR OF BOTH THE SIMON WIESENTHAL CENTER AND ITS MUSEUM BELIEVES THAT FORCED TOURS ARE ESSENTIAL IF THE INSTITUTION IS TO SUCCEED IN ITS EDUCATIONAL MISSION THIS MUSEUM IS NOT DESIGNED FOR THE KNOWLEDGEABLE HE SAYS NOR FOR THE CONVERTED LEFT TO THEMSELVES RABBI HIER FEARS VISITORS MIGHT WANDER ABOUT AT WILL AND MISS ESSENTIAL LESSONS AS PART OF THIS INCULCATION RABBI HIER AND HIS DESIGNERS KARL KATZ AND JAMES GARDNER CREATED DISPLAYS STRESSING JEWISH RESISTANCE TO HITLER TO COUNTER THE DEGRADING IMAGE OF LAMBS TO THE SLAUGHTER AND MADE USE OF FREQUENT CITATIONS FROM NAZI DOCUMENTS TO CRUSH THE IGNORANT OR MALICIOUS CLAIMS OF THE HOLOCAUST DENIERS AFTER EACH GROUP OF 25 HAS GATHERED AN ATTENDANT LEADS IT DOWN A SPIRAL RAMP TO THE BOTTOM OF THE 90FOOTHIGH CENTRAL LIGHT WELL WHICH IS FILLED WITH AN ABSTRACT SCULPTURE SUGGESTING FENCES AND GATES AND STUDDED WITH PHOTOGRAPHS OF AUSCHWITZ VICTIMS AT THE BOTTOM OF THE RAMP VISITORS ARE LED INTO THE FLASHY MULTIMEDIA TOLERANCENTER WHERE THE GUIDE LEAVES THEM FROM HERE ON THEY ARE LED BY RECORDED VOICES AND AUTOMATICALLY OPENING DOORS ON A TIMED TOUR ORGANIZED BY SYNCHRONIZED COMPUTERS EACH GROUP MOVES PERISTALTICALLY ALONG LOOKING AT THE SAME DISPLAYS LISTENING TO THE SAME RECORDED DIALOGUE THE WAY BOATLOADS OF TOURISTS IN DISNEYLAND ARE LED PAST REGULARLY REPEATING ANIMATED TABLEAUX A FEW ATTEMPTS HAVE BEEN MADE TO CONJURE UP ARCHITECTURALLY THE STAGES THAT LED TO THE GAS OVENS SHABBY BRICK WALLS LIKE THOSE OF THE WARSAW GHETTO A REPLICA OF THE GATES OF AUSCHWITZ LEADING TO DARK TUNNELS MARKED ABLE BODIED AND CHILDREN AND OTHERS HOWEVER UNSETTLING THESE STRIKE ME AS SOMEWHAT STAGEY LIKE THE ENTRY DOORS LABELED PREJUDICED AND UNPREJUDICED THE LATTER IS ALWAYS LOCKED OR THE MOCKUP OF A 1930S BERLIN STREET TOUR GROUPS PASS THROUGH IN ORDER TO SEE MEIN KAMPF IN A BOOKSTORE WINDOW AND NAZI POSTERS ON THE WALL TO OVERHEAR THE BIGOTED CONVERSATIONS OF GRAY MANNEQUINS WHO REPRESENT TYPICAL BERLINERS AT A COFFEE HOUSE ONE WAY TO JUDGE THE MUSEUM IS TO COMPARE IT WITH ITS IMMENSELY POPULAR WASHINGTON COUNTERPART WHICH OPENED TWO MONTHS LATER AND COST THREE TIMES AS MUCH THE VISITOR'S PRIMARY EXPERIENCE OF THE NEW US HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON IS LIKELY TO BE THAT OF ARCHITECT JAMES I FREED'S AWESOME BUILDING ITSELF WHICH INTENTIONALLY EVOKES THE MATERIALS FORMS AND EMOTIONAL WEIGHT OF NAZI CONCENTRATION CAMPS WITHIN ITS EXPRESSIVE SPACES IS AN OVERWHELMING COLLECTION OF ARTIFACTS DOCUMENTS AND PHOTOGRAPHS THE CLOTHING AND POSSESSIONS OF VICTIMS GATES COBBLESTONES RECONSTRUCTED BARRACKS A BOXCAR AN OVEN THE LOS ANGELES MUSEUM DEPENDS ON NEITHER ARCHITECTURE NOR ARTIFACTS FOR ITS IMPACT FROM THE MOMENT YOU DESCEND INTO THE UNDERGROUND PARKING LEVELS YOU SCARCELY NOTICE THAT THERE IS ANY ARCHITECTURE UNTIL YOU ENTER THE OMINOUS FINAL ROOM A SMALL SAMPLING OF THE MUSEUM'S COLLECTION OF HOLOCAUSTRELATED OBJECTS IS CURRENTLY ON DISPLAY AND WILL EVENTUALLY BE ENLARGED BUT MORE IMPORTANT THAN EITHER THE BUILDING OR ITS COLLECTIONS IS A SERIES OF CLEVER REFINEMENTS IN INFOTAINMENT TECHNOLOGY WHICH SEEMS QUITE AT HOME IN LOS ANGELES RABBI HIER'S GOAL WAS TO CREATE A PERMANENT PERSUASIVE AND LIVING REPLACEMENT FOR THE LAST GENERATION OF HITLERERA SURVIVORS NOW RAPIDLY DYING OUT IN PARTICULAR HE WANTED TO FIND A WAY TO PASS THE WORD ALONG TO TVTRAINED CHILDREN WHO ENTER AT A GREATLY REDUCED RATE FOR WHOM THE NAZI ERA MAY SEEM AS REMOTE AS THE JURASSIC IN THEIR EAGERNESS TO REACH CHILDREN WITH TALKING PUPPETS FLASHY VIDEOS AND POP ICONS HOWEVER THE LA MUSEUM DESIGNERS MAY BE UNDERSHOOTING SOME ADULTS MOST OF THE EXAMINEYOURCONSCIENCE GAMES IN THE TOLERANCENTER A SORT OF POLITICALLY CORRECT VIDEO ARCADE SEEM TO ME MORE HEAVYHANDED THAN USEFULLY PROVOCATIVE LIKE MANY CALIFORNIAN VISITORS I SPENT CONSIDERABLE TIME RELIVING THE 1992 RIOTS BY MEANS OF VIDEOTAPED FOOTAGE ONE IS PERMITTED AT INDIVIDUAL STATIONS TO SELECT CUT MIX FREEZE AND JUDGE A SHORT SPLITSCREEN FILM ON THE 1960S CIVIL RIGHTS STRUGGLE BY ORLANDO BAGWELL COCREATOR OF EYES ON THE PRIZE IS THE STRONGEST SINGLE ELEMENT OF THE PREHOLOCAUST SECTION DISPLAYS AFTER THAT I FOUND MYSELF RESISTING MANY OF THE OVERSIMPLIFIED HISTORY LECTURES AND FICTIONAL RESTAGINGS OF EVENTS SOMETIMES PRESENTED THROUGH TALKING SHOPWINDOW DIORAMAS YET I RESPONDED WITH UNDIMINISHED HORROR TO EYEWITNESS ACCOUNTS AND PHOTOS OR FILMS FROM THE 1930S AND '40S BUT THEN AS RABBI HIER POINTS OUT HIS MUSEUM WAS NOT INTENDED FOR OVEREDUCATED MIDDLEAGED CRITICS LIKE ME THE SEQUENCING OF EXHIBITS IMPLIES A DIRECT LINK BETWEEN THE KIND OF CASUAL OFFHAND STEREOTYPING IRONICALLY DRAMATIZED IN THE POP TOLERANCENTER AND THE NAZIS' WILLFUL SLAUGHTER OF SIX MILLION JEWS I GET THE POINT BUT ON THE WHOLE THIS SEEMS TO ME A PRETTY WIDE RHETORICAL STRETCH I DOUBT THAT MANY PEOPLE LEAVE THE MUSEUM VOWING TO AVOID MAKING OFFENSIVE ASSUMPTIONS OR GENERALIZATIONS ABOUT PEOPLE UNLIKE THEMSELVES BECAUSE THEY HAVE BEEN PERSUADED BY A SERIES OF AUDIOVISUAL DISPLAYS THAT SUCH IDEAS AND REMARKS ARE LIKELY TO LEAD TO MASS EXTERMINATION ON THE SECOND FLOOR OF THE MUSEUM OF TOLERANCE AFTER THE TIMED TOUR YOU ARE INVITED AS YOU ARE IN WASHINGTON TO SIT AND COMMUNICATE WITH ONE OF 30 INTERACTIVE COMPUTER MONITORS TO ASK THEM SET QUESTIONS ABOUT THE NAZIS AND THE JEWS AND RECEIVE IN REPLY SAMPLES FROM A HUGE ARRAY OF DATA STORED ON CDROM DISKS IN THE FORM OF STILL AND MOVING PICTURES MAPS MUSIC TEXTS AND STATISTICS THE RECENT EARTHQUAKE LEFT THE MUSEUM UNHARMED MAKING IT STILL POSSIBLE THAT UP TO A THOUSAND OR MORE PEOPLE A DAY IN LOS ANGELES ARE BECOMING IF NOT NECESSARILY LESS INTOLERANT OF THEIR FELLOW CITIZENS AT LEAST LESS IGNORANT ABOUT THE HOLOCAUST THAN THEY WERE BEFORE IF IT TAKES HOLLYWOOD GLITZ TO ACCOMPLISH THAT HOORAY FOR HOLLYWOOD MR LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9402030057 940203 BUSINESS BRIEF GENERATION 5 TECHNOLOGY INC NOVA INDUSTRIAL HOLDINGS OF HONG KONG IS ACQUIRED NOVA INDUSTRIAL HOLDINGS LTD OF HONG KONG A LEADING IMPORTER OF WOOL INTO CHINA WAS ACQUIRED BY A TINY COLORADO SOFTWARE CONCERN FOR STOCK VALUED AT 624 MILLION THOUGH GENERATION 5 TECHNOLOGY INC IS TECHNICALLY THE ACQUIRING COMPANY IT IS BEING SWALLOWED UP BY THE MUCHLARGER NOVA WHICH WILL ACCOUNT FOR MOST OF THE OPERATIONS OF THE COMBINED COMPANY IN ADDITION TO IMPORTING WOOL INTO CHINA NOVA EXPORTS INDUSTRIAL CHEMICALS AND OTHER GOODS FROM CHINA TO ELSEWHERE IN ASIA AND TO AFRICA SAID CHARLES HAWLEY CHIEF EXECUTIVE OFFICER OF WESTMINSTERBASED GENERATION 5 HE SAID NOVA ALSO PLANS TO START MAKING MOPEDS IN CHINA FOR SALE THERE IN 1993 NOVA HAD UNAUDITED EARNINGS OF 102 MILLION ON SALES OF 137 MILLION GENERATION 5 SAID IN THE THIRD QUARTER OF 1993 GENERATION 5 POSTED A LOSS OF 379900 OR 24 CENTS A SHARE ON REVENUE OF 411513 9402030056 940203 REVIEW & OUTLOOK EDITORIAL THE BATTLE FOR VMI A FEDERAL DISTRICT COURT WILL SOON BE DECIDING WHETHER A PLAN DEVISED TO PRESERVE THE FAMOUSLY ALLMALE CHARACTER OF THE VIRGINIA MILITARY INSTITUTE WHILE PROVIDING SEPARATE BUT EQUIVALENT MILITARY EDUCATION FOR WOMEN WILL BE ACCEPTABLE THE WOMEN IN QUESTION WOULD BE STUDENTS OF MARY BALDWIN COLLEGE AN ALLWOMEN'S INSTITUTION IN NEARBY STAUNTON BEYOND VMI THOUGH THE COURT'S DECISION WILL HAVE AN IMPACT ON OTHER LARGER ISSUES AMONG THEM THE MATTER OF WHETHER GENDER SEGREGATION IS AN OFFENSE EQUAL TO RACIAL SEGREGATION THE SUPREME COURT HASN'T YET RULED ON THIS RICH QUESTION BUT THE TIME MAY BE APPROACHING VMI'S LEGAL TROUBLES BEGAN IN 1990 WHEN IT REFUSED TO ADMIT A FEMALE APPLICANT WHICH SWITCHED ON THE PROGRAMMED WRATH OF JUSTICE DEPARTMENT ENFORCERS WHO CHARGED THE STATEFINANCED SCHOOL WITH DISCRIMINATION LAST MAY THE US SUPREME COURT UPHELD AN APPEALS COURT RULING THAT VMI COULD ONLY RETAIN ITS ALLMALE STATUS IN TWO WAYS EITHER BY BECOMING A PRIVATE INSTITUTION OR BY PROVIDING A SEPARATE BUT PARALLEL VMI EDUCATION FOR WOMEN ACCORDINGLY A PLAN WAS CONCEIVED BY ADMINISTRATORS AND FACULTY AT ALLWOMEN MARY BALDWIN A NEW PROGRAM IN CONJUNCTION WITH VMI WOULD BE CREATED FOR MARY BALDWIN STUDENTS WITH HEAVY EMPHASIS ON LEADERSHIP AND DISCIPLINE THE PROGRAM WOULD BE FINANCED IN PART BY A 69 MILLION GRANT FROM VMI ALUMNI IT PROVIDES FOR ROTC JOINT EXERCISES WITH VMI MILITARY SCIENCE COURSES TO BE TAUGHT BY VMI INSTRUCTORS USE OF VMI FACILITIES RIGOROUS PHYSICAL TRAINING AN HONOR CODE AND MORE OF THE KIND THE STATE WOULD PROVIDE MARY BALDWIN WITH THE SAME FUNDING PER CADET THAT VMI GETS IT WAS TO BE EXPECTED THAT THIS ENTERPRISING AND SANE PLAN WOULD PROVOKE FIERCE OPPOSITION FROM WOMEN'SRIGHTS IDEOLOGUES WHO SEE THE DESTRUCTION OF VMI'S ALLMALE TRADITION AS JUST ONE MORE NECESSARY STEP IN THE PERPETUAL MARCH TO HIS CREDIT THEN GOVERNOR DOUGLAS WILDER A DEMOCRAT WAS AMONG THE FIRST TO ENDORSE THE PLAN DEVELOPED LAST SEPTEMBER AND ALSO TO RECOGNIZE ITS KEY VIRTUE THIS WAS THE FACT THAT IT WAS A PLAN THAT IN THE GOVERNOR'S WORDS RECOGNIZED THE PHYSIOLOGICAL AND PSYCHOLOGICAL DIFFERENCES BETWEEN MEN AND WOMEN TO BE SURE THERE ARE ENOUGH WOMEN CAPABLE OF SURVIVING THE RIGORS OF CADET LIFE AT VMI THE ILLUSTRIOUS MILITARY SCHOOL WHERE STONEWALL JACKSON ONCE TAUGHT PHILOSOPHY AND WHOSE MOST FAMOUS GRADUATE IN THIS CENTURY WAS ONE GEORGE C MARSHALL STILL IT IS NO SURPRISE THAT THE EDUCATORS WHO CONCEIVED THE PROPOSED MARY BALDWIN PROGRAM DECIDED IT WOULD BE UNNECESSARY TO EMULATE CERTAIN OF THE MORE DISTINCTIVE FEATURES OF LIFE AT VMI FIRST YEAR VMI STUDENTS FOR EXAMPLE CAN LOOK FORWARD TO WALKING THE FAMOUS RAT LINE THAT IS ADHERING TO A RIGID IMAGINARY LINE WHILE IN THE BARRACKS MARCHING DOUBLETIME UP AND DOWN STAIRS EARLY MORNING WAKEUP SUMMONSES TO 'SWEAT PARTIES PUSHUPS AND OTHER HEAVYDUTY FUN AND SUCH CREATORS OF THE MARY BALDWIN PLAN CONCLUDED THAT THIS SORT OF ADVERSARIAL TRAINING WASN'T LIKELY TO BE PRODUCTIVE WITH WOMEN HOWEVER CHERISHED A TRADITION IT WAS AT VMI IN ITS REASONABLENESS AND INTELLIGENCE THE VMIMARY BALDWIN PLAN REPRESENTS A KIND OF SOLUTION THAT DOESN'T COME ALONG ALL THAT OFTEN IN OUR NOISY POLITICAL TIMES IT'S PROBABLY HOPELESS TO TRY TO PERSUADE THE SORT OF TRUE BELIEVERS WHO WANT THE VMI TO BE FORCED TO ADMIT WOMEN AS HAS JUST HAPPENED TO THE CITADEL IN SOUTH CAROLINA MARY BALDWIN'S SOLUTION MUST NOT PASS THE ARGUMENT GOES LEST THE OFFENDING INSTITUTION BE ALLOWED TO PERPETUATE THE OLDBOY NETWORK EVERYONE ELSE NOT LIVING FULLTIME ON THIS PARTICULAR RAMPART HOWEVER MIGHT WANT TO CONSIDER SOME OF THE COMPLICATIONS THAT MAY ENSUE IF THE LEGAL CAMPAIGN TO UNDO THE CHARACTER OF THE NATION'S OLDEST MILITARY COLLEGE SUCCEEDS A COURT RULING THAT VMI MUST ACCEPT WOMEN WOULD BE BAD NEWS NOT ONLY FOR THAT SCHOOL BUT FOR THE FUTURE OF ALLWOMEN'S AND POSSIBLY ALLBLACK COLLEGES THAT RECEIVE STATE FUNDS DR CYNTHIA TYSON THE PRESIDENT OF MARY BALDWIN COLLEGE NOTES THAT HER SUPPORT FOR THE JOINT VENTURE WITH VMI IS LARGELY DUE TO HER CERTAINTY WHICH MANY SHARE THAT WHAT IS AT STAKE IN THE VMI CASE IS NOTHING LESS THAN THE SURVIVAL OF THE SINGLESEX COLLEGE WE WOULD ADD TO THAT A CONSIDERATION THAT IS IN OUR VIEW AN EVEN MORE IMPORTANT MATTER NAMELY WHETHER REASON AND SENSE CAN PREVAIL AGAINST THE CLAMOR OF FANATICS 9402030055 940203 LEGAL BEAT LAW FIRM'S ADS PURSUE USERS OF RECALLED DRUG BY MILO GEYELIN AND TOM KNUDSON STAFF REPORTERS OF THE WALL STREET JOURNAL JUST 10 DAYS AFTER STARTING A SERIES OF TELEVISION ADVERTISEMENTS ABOUT THE RECALLED ASTHMA DRUG ALBUTEROL LAWYERS FOR JACOBY & MEYERS IN ARIZONA HAVE FILED TWO LAWSUITS ON BEHALF OF SEVEN CLIENTS AGAINST THE DRUG'S MANUFACTURER COPLEY PHARMACEUTICAL INC THE JACOBY & MEYERS ADVERTISEMENTS BREAK NEW GROUND IN DRUMMING UP CLIENTS LEGAL EXPERTS SAY THEY ARE THE FIRST TELEVISION ADS THAT INVITE PEOPLE TO EXPLORE LITIGATION POSSIBILITIES AGAINST A SPECIFIC COMPANY WITH A PROBLEM PRODUCT ALSO SOLICITATIONS ABOUT PRODUCTS GENERALLY DON'T OCCUR UNTIL AFTER THERE ARE CONFIRMED CASES OF INJURIES RELATED TO IT THE ADS WHICH FIRST AIRED IN PHOENIX AND ARE SHOWING IN NEW YORK PHILADELPHIA AND SACRAMENTO CALIF GIVE A TOLLFREE NUMBER FOR THE FIRM WHICH SENDS CALLERS FACT SHEETS ABOUT ALBUTEROL ON JACOBY & MEYERS LETTERHEAD AFTER CONTACTING YOUR DOCTOR THE FIRM ADVISES PROSPECTIVE CLIENTS CONTACT JACOBY & MEYERS FOR ADVICE REGARDING A POTENTIAL DAMAGE CLAIM AGAINST COPLEY PHARMACEUTICAL INC COPLEY RECALLED ALBUTEROL ON JAN 5 TWO OTHER LAWSUITS ARE PENDING IN CHICAGO THE JACOBY ADS HAVE GENERATED 471 INQUIRIES IN PHOENIX AND ABOUT 50 IN TUCSON SAID PARTNER STEPHEN MEYERS THE FIRM YESTERDAY FILED ONE LAWSUIT IN PHOENIX AND ONE IN TUCSON ON BEHALF OF THE FAMILIES OF SEVEN CHILDREN I WOULD GUESS THAT WITHIN SEVERAL WEEKS WE WOULD HAVE MAYBE 1000 CASES SAID MR MEYERS THE FIRM HAS ITS NATIONAL OFFICES IN NEW YORK THINGS ARE GOING TO HAPPEN MUCH MORE QUICKLY WITH RESPECT TO DEFECTIVE PRODUCTS NOW BECAUSE WE CAN INFORM THE PUBLIC VERY QUICKLY SAID MR MEYERS AND THEY'LL CONTACT US IN HUGE NUMBERS MR MEYERS SAID IT WAS IMPORTANT TO ACT QUICKLY IN THIS CASE BECAUSE OF WIDESPREAD CONFUSION ABOUT THE RECALL HE ALSO SAID THAT COPLEY HAS BEEN DOING A POOR JOB OF INFORMING THE PUBLIC THAT IT DISCOVERED POTENTIALLY HARMFUL BACTERIA IN ALBUTEROL WHICH PROMPTED THE RECALL MR MEYERS SAYS MORE THAN 125 CLIENTS HAVE RETAINED THE FIRM TO PURSUE POSSIBLE CASES A COPLEY REPRESENTATIVE SAID THE COMPANY WOULDN'T COMMENT ON THE LITIGATION OR THE ADVERTISING EXPERTS ON LEGAL ADVERTISING SAID THEY HAD FEW ETHICAL CONCERNS ABOUT THE JACOBY & MEYERS ADS SO LONG AS THEY DON'T PROMPT AN AVALANCHE OF FRIVOLOUS LAWSUITS THERE ARE SANCTIONS BUILT INTO THE CIVIL JUSTICE SYSTEM FOR FRIVOLOUS SUITS SAID WILL HORNSBY STAFF COUNSEL TO AMERICAN BAR ASSOCIATION COMMISSION ON ADVERTISING MR HORNSBY SAID PRINT SOLICITATIONS TARGETED AT INJURY VICTIMS HAVE BEEN INCREASING ONE SEATTLE LAWYER BEGAN BUYING QUARTERPAGE ADS IN LOCAL NEWSPAPERS LAST YEAR AFTER AN ECOLI BACTERIA OUTBREAK LINKED TO TAINTED UNDERCOOKED HAMBURGERS SICKENED 600 ADULTS AND RESULTED IN SEVERAL DEATHS WHEN A CHICAGOAREA COMMUTER TRAIN CRASHED LAST YEAR ONE INDIANA LAWYER TOOK OUT FOURBYFIVEINCH NEWSPAPER ADS ENTITLED SOUTH SHORE ACCIDENT VICTIMS KNOW YOUR RIGHTS THE JACOBY & MEYERS SOLICITATIONS ARE UNIQUE SAID MR HORNSBY BECAUSE THEY APPEAR ON TELEVISION THE SPOTS ARE THE NEWEST INNOVATION IN LEGAL ADVERTISING ONCE CONSIDERED UNETHICAL BY LAWYERS AND PROHIBITED BY STATE AND LOCAL BAR GROUPS BUT IT'S TAKEN OFF SINCE A 1977 US SUPREME COURT DECISION STRIKING DOWN SUCH PROHIBITIONS AS A VIOLATION OF COMMERCIAL FREE SPEECH INDEED JACOBY & MEYERS WAS THE FIRST LAW FIRM TO ADVERTISE ON TELEVISION WHILE COPLEY'S RECALL NOTICE SAYS CONTAMINATED BOTTLES OF ALBUTEROL MIGHT CAUSE INFECTIONS IN PEOPLE WITH ASTHMA OR OTHER RESPIRATORY AILMENTS JACOBY & MEYERS GOES A STEP FARTHER WARNING AGAINST THE POSSIBILITY OF PNEUMONIA IN THE TWO LAWSUITS YESTERDAY FILED IN STATE COURT IN TUCSON AND PHOENIX THE PLAINTIFFS ALLEGED THEIR CHILDREN CONTRACTED SERIOUS ILLNESSES AND RESPIRATORY COMPLICATIONS INCLUDING PNEUMONIA FROM USING ALBUTEROL TRADITIONAL LAW FIRMS HAVE LONG RESISTED LEGAL ADS PARTICULARLY ON TELEVISION OVER CONCERN THAT THEY DEMEAN THE PROFESSION'S IMAGE MORE RECENTLY STATE BAR GROUPS HAVE BECOME CONCERNED THAT TELEVISION PARTICULARLY ADS THAT SOLICIT PERSONALINJURY VICTIMS MAY TURN PUBLIC OPINION AGAINST LAWYERS AND CLAIMANTS A FIRED GENERAL ELECTRIC CO EXECUTIVE AND SELFPROCLAIMED WHISTLEBLOWER WON A ROUND IN HIS WRONGFUL DISMISSAL ACTION AS A FEDERAL MAGISTRATE RECOMMENDED DENIAL OF GE'S MOTION TO DISMISS THE SUIT THE MAGISTRATE'S RECOMMENDATION PAVES THE WAY FOR A JURY TRIAL WHICH GE HAD HOPED TO AVOID UNDER THE OHIO WHISTLEBLOWER STATUTE IN FEDERAL COURT IN CINCINNATI THE MAGISTRATE ALSO RECOMMENDED GRANTING GE MOTIONS TO DISMISS TWO OTHER CLAIMS THAT WOULD HAVE ALLOWED THE DEFENDANT TO INTRODUCE BROADER CHARGES AND SEEK BROADER REDRESS THE DISMISSAL RECOMMENDATION SIGNIFICANTLY NARROWS THE CASE A GE SPOKESWOMAN SAID THE TRIAL AT WHICH GE CHAIRMAN JOHN F WELCH IS EXPECTED TO TESTIFY IS SCHEDULED FOR FEB 21 IT IS EXPECTED TO MAKE PUBLIC A RAFT OF HITHERTO SEALED CHARGES COUNTER CHARGES DEPOSITIONS AND DOCUMENTS INVOLVING PRICEFIXING ALLEGATIONS THAT ARE CURRENTLY UNDER INVESTIGATION BY THE US JUSTICE DEPARTMENT MUCH OF THE SEALED MATERIAL CONCERNING THE FIRING ALSO OFFERS A RARE LOOK AT THE INNER WORKING OF GE'S TOP MANAGEMENT THE SUIT WAS FILED IN APRIL 1992 BY EDWARD RUSSELL WHO WAS VICE PRESIDENT OF GE SUPERABRASIVES IN WORTHINGTON OHIO BEFORE BEING FIRED ON SEPT 5 1991 BY MR WELCH MR RUSSELL CHARGES THAT HE WAS FIRED BECAUSE HE RAISED ANTITRUST OBJECTIONS TO HIS BOSS'S MEETING WITH GE'S ONLY MAJOR COMPETITOR IN INDUSTRIAL DIAMONDS GE WHICH MAINTAINS THAT AT THE MEETING WAS TO DISCUSS TECHNOLOGY EXCHANGE CONTENDS THAT MR RUSSELL WAS FIRED FOR POOR PERFORMANCE WITHOUT PASSING ANY JUDGMENT ON THE MERITS OF THE CASE MAGISTRATE JUDGE ROBERT STEINBERG SAID GE DIDN'T PRESENT ENOUGH EVIDENCE TO PREVAIL IN ITS MOVE TO GET THE COURT TO DISMISS MR RUSSELL'S SUIT THE MAGISTRATE LISTED HIS FINDINGS AND RECOMMENDATIONS IN A 30PAGE REPORT TO THE JUDGE WHO IS SCHEDULED TO PRESIDE OVER THE TRIAL COMMENTING ON MAGISTRATE STEINBERG'S ACTION A GE SPOKESWOMAN SAID THAT THE MAGISTRATE'S RULING SIMPLY MEANS THAT THERE ARE GENUINE DISPUTES OVER THE MATERIAL FACTS IN ONE OF MR RUSSELL'S CHARGES AND THEREFORE IT SHOULD GO TO TRIAL NORIEGA MOTION LAWYERS FOR MANUEL NORIEGA ASKED FOR A NEW TRIAL IN HIS DRUG CASE SAYING A NEW BOOK INDICATES JURORS IMPROPERLY PRESSURED A HOLDOUT THEN MISLED THE JUDGE ACCORDING TO THE ASSOCIATED PRESS THE BOOK THE CASE AGAINST THE GENERAL MANUEL NORIEGA AND THE POLITICS OF AMERICAN JUSTICE BY JOURNALIST STEVE ALBERT RAISES NEW AND DISTURBING QUESTIONS CONCERNING THE CONDUCT OF THE JURORS BOTH DURING THE DELIBERATIONS AS WELL AS BEFORE THIS COURT SAID THE MOTION FROM ATTORNEY JON MAY THE OUSTED PANAMANIAN MILITARY LEADER WAS CONVICTED IN APRIL 1992 ON EIGHT FEDERAL DRUG AND RACKETEERING COUNTS DAN GELBER SPOKESMAN FOR THE US ATTORNEY IN MIAMI SAID HIS OFFICE WOULD NOT LITIGATE THIS THROUGH THE MEDIA AND REFUSED TO COMMENT AMAL KUMAR NAJ CONTRIBUTED TO THIS ARTICLE 9402030054 940203 BUSINESS BRIEF SOUTHWEST AIRLINES PROFIT ROSE MORE THAN 40 IN 4TH QUARTER AND FULL YEAR SOUTHWEST AIRLINES REPORTED FOURTHQUARTER AND YEAREND PROFITS THAT WERE MORE THAN 40 HIGHER THAN A YEAR EARLIER DALLASBASED SOUTHWEST SAID IT HAD FOURTHQUARTER NET INCOME OF 384 MILLION OR 26 CENTS A SHARE ON REVENUE OF 6085 MILLION FOR THE YEAREARLIER PERIOD SOUTHWEST EARNED 267 MILLION OR 18 CENTS A SHARE ON REVENUE OF 4833 MILLION THE RESULTS INCLUDE THOSE OF MORRIS AIR CORP WHICH SOUTHWEST BOUGHT IN DECEMBER THROUGH ISSUING 3574656 COMMON SHARES AND ACCOUNTING FOR THE PURCHASE AS A POOLING OF INTEREST THE DEAL WAS VALUED AT ABOUT 128 MILLION SOUTHWEST HAD A ONETIME CHARGE IN THE FOURTH QUARTER FROM MERGER COSTS WHICH REDUCED NET INCOME BY 63 MILLION OR FOUR CENTS A SHARE FOR THE YEAR NET INCOME WAS 1695 MILLION OR 115 A SHARE COMPARED WITH THE YEAREARLIER 1099 MILLION OR 77 CENTS A SHARE REVENUE ROSE TO 229 BILLION FROM 180 BILLION 9402030053 940203 INTERNATIONAL RENAULT SELLS 485 STAKE IN VOLVO STILL OWNS SHARES PARIS FRENCH CAR MAKER RENAULT SA SOLD A 485 STAKE OF AB VOLVO THE SWEDISH COMPANY WITH WHICH A PLANNED MERGER HAD FAILED RENAULT SAID IT NOW HOLDS 345 OF VOLVO CAPITAL AND 876 OF ITS VOTING RIGHTS IT PREVIOUSLY HELD 83 OF THE CAPITAL AND 999 OF THE VOTING RIGHTS RENAULT HAD BUILT UP ITS STAKE IN VOLVO GRADUALLY BUYING ITS SHARES ON THE OPEN MARKET UNTIL SEPTEMBER THE SHAREHOLDING WAS CHARACTERIZED AS AN INVESTMENT AND WASN'T RELATED TO THE CROSSSHAREHOLDING AGREEMENTS THAT CEMENTED THE INDUSTRIAL ALLIANCE BETWEEN THE TWO CAR GROUPS UNDER THESE ACCORDS THE SWEDISH GROUP TOOK A 20 SHAREHOLDING IN RENAULT SA AND 45 OF RENAULT'S TRUCK DIVISION RENAULT VEHICULES INDUSTRIELS OR RVI THE REMAINDER OF RENAULT'S SHARES ARE HELD BY THE FRENCH GOVERNMENT IN RETURN RENAULT ACQUIRED 25 OF VOLVO'S CAR DIVISION AND 45 OF VOLVO TRUCKS ACCORDING TO UNOFFICIAL ESTIMATES RENAULT MADE A PROFIT OF CLOSE TO 750 MILLION FRANCS 1275 MILLION FROM THE SALE OF ITS STAKE RENAULT SOLD 32 MILLION AB VOLVO SHARES AT 655 KRONOR 8299 ON TUESDAY FOR A TOTAL AMOUNT OF 21 BILLION KRONOR 9402030052 940203 BUSINESS BRIEF COCACOLA ENTERPRISES INC VOLUME GAINS LOWER COSTS LED TO FOURTHPERIOD PROFIT COCACOLA ENTERPRISES INC ATLANTA REPORTED A FOURTHQUARTER PROFIT AGAINST A YEAREARLIER LOSS AS THE COMPANY BENEFITED FROM GAINS IN VOLUME AND LOWER PACKAGING COSTS THE LARGE COKE BOTTLER SAID NET INCOME TOTALED 4 MILLION OR THREE CENTS A SHARE COMPARED WITH A LOSS OF 31 MILLION OR 24 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 3 TO 132 BILLION FROM 128 BILLION THE STOCK CLOSED AT 17875 UP 1375 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY WHICH IS 43OWNED BY COCACOLA CO ALSO IN ATLANTA SAID THAT SALES OF BOTTLED AND CANNED SOFT DRINKS ROSE ABOUT 3 IN THE FOURTH QUARTER EXCLUDING THE EFFECT OF ACQUISITIONS FOUNTAIN GALLON VOLUME AGAIN EXCLUDING THE EFFECT OF ACQUISITIONS INCREASED ABOUT 6 FOR THE YEAR COCACOLA ENTERPRISES HAD A NET LOSS OF 15 MILLION OR 11 CENTS A SHARE COMPARED WITH A NET LOSS OF 186 MILLION OR 145 A SHARE A YEAR EARLIER THE 1993 RESULTS INCLUDE A CHARGE OF 40 MILLION OR 31 CENTS A SHARE FOR THE RESTATEMENT OF DEFERRED TAX LIABILITY 9402030051 940203 FORD TO WOO OVERSEAS SALES SHIP MUSTANGS TO JAPAN CHICAGO FOR THE FIRST TIME IN A DECADE FORD MOTOR CO WILL SHIP ABOUT 3000 MUSTANG MUSCLE CARS TO JAPAN THIS YEAR AS PART OF A BROADER STRATEGY TO BOOST PROFITS BY SHARING MORE PRODUCTS AND TECHNOLOGY AMONG ITS OPERATIONS WORLDWIDE DURING A NEWS CONFERENCE IN ADVANCE OF THE CHICAGO AUTO SHOW FORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALEXANDER TROTMAN SAID FORD'S LONGTERM GOAL IS TO EARN A 5 RETURN ON REVENUE OR AN 8 TO 10 RETURN ON ASSETS ROUGHLY 5 BILLION A YEAR ON FORD'S CURRENT SALES TO DO THAT MR TROTMAN SAID FORD WILL PURSUE A VARIETY OF INITIATIVES TO MORE CLOSELY LINK ITS OPERATIONS WORLDWIDE AS AN EXAMPLE MR TROTMAN CITED FORD'S NEW MERCURY MYSTIQUE WHICH WAS OFFICIALLY UNVEILED YESTERDAY THE MYSTIQUE AND ITS FORD TWIN THE CONTOUR ARE SEDANS THAT WERE LARGELY ENGINEERED BY FORD OF EUROPE AND WILL BE MANUFACTURED IN EUROPE THE US AND MEXICO FORD WILL HAVE CAPACITY TO BUILD 300000 CONTOURS AND MYSTIQUES FOR THE NORTH AMERICAN MARKET 9402030050 940203 INTERNATIONAL PRIVATIZATION STARTS TODAY FOR FRANCE'S ELF AQUITAINE SPECIAL TO THE WALL STREET JOURNAL PARIS THE PRIVATIZATION OF SOCIETE NATIONALE ELF AQUITAINE WILL GET UNDER WAY TODAY WITH THE PUBLIC OFFER IN FRANCE PRICED AT 385 FRANCS 6544 PER SHARE THE ECONOMICS MINISTRY SAID THE OPERATION FRANCE'S BIGGESTEVER PRIVATIZATION WILL BRING THE GOVERNMENT AT LEAST 34 BILLION FRANCS FROM THE SALE OF 89 MILLION SHARES IN THE OIL COMPANY THE SHARE OFFER WILL RUN THROUGH NEXT THURSDAY A TOTAL OF 33207530 WILL BE SOLD THROUGH THE PUBLIC OFFER IN FRANCE A SEPARATE TRANCHE OF 27169796 SHARES WILL BE OFFERED TO INSTITUTIONAL INVESTORS IN FRANCE AND ABROAD PRICING FOR THAT ISSUE WILL BE ANNOUNCED FEB 14 THE MINISTRY SAID 22 MILLION SHARES REPRESENTING 85 OF THE COMPANY ARE BEING ALLOCATED TO A CORE GROUP OF SHAREHOLDERS INCLUDING STATECONTROLLED INSURANCE GROUP UNION DES ASSURANCES DE PARIS A FURTHER 67 MILLION SHARES HAVE BEEN SET ASIDE FOR ELF AQUITAINE'S PRESENT AND PAST EMPLOYEES ERAP ELF AQUITAINE'S HOLDING COMPANY ALSO HAS AN OPTION TO OFFER BANKS HANDLING THE INSTITUTIONAL PLACEMENT AN EXTRA BLOCK OF SHARES EQUIVALENT TO 10 OF THAT PLACEMENT IF THAT OPTION IS EXERCISED THE GOVERNMENT'S STAKE IN ELF WOULD FALL TO 13 FROM THE CURRENT 508 ELF AQUITAINE SHARES CLOSED AT 4307 FRANCS ON THE PARIS BOURSE YESTERDAY UP FROM 424 FRANCS ON TUESDAY 9402030049 940203 PENTAGON LAWYER EMERGES IN SEARCH FOR RENO DEPUTY WASHINGTON THE PENTAGON'S TOP LAWYER JAMIE GORELICK HAS EMERGED AS THE LEADING CANDIDATE TO SUCCEED PHILIP HEYMANN AS DEPUTY ATTORNEY GENERAL MR HEYMANN ANNOUNCED HIS RESIGNATION LAST WEEK MS GORELICK WOULD LIKELY ENJOY AN EASY CONFIRMATION PROCESS HAVING UNDERGONE ONE LAST YEAR FOR HER CURRENT POSITION THE 43YEAROLD HARVARD LAW SCHOOL GRADUATE HAS BEEN A MAJOR PLAYER IN THE DEVELOPMENT OF THE DEFENSE DEPARTMENT'S POLICY ON GAYS IN THE MILITARY AND HAS WORKED WITH THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION IN DEVELOPING AN ANTITRUST ENFORCEMENT STRATEGY CONCERNING THE CONSOLIDATING DEFENSE INDUSTRY MS GORELICK IS AUTHOR OF DESTRUCTION OF EVIDENCE A 1989 TREATISE ON MAINTAINING DOCUMENTS AND PENALTIES FOR DESTROYING EVIDENCE BEFORE JOINING THE PENTAGON MS GORELICK WAS A LITIGATOR IN THE WASHINGTON LAW FIRM OF MILLER CASSIDY LARROCA & LEWIN WHERE SHE SPECIALIZED IN CIVIL AND CRIMINAL MATTERS INCLUDING GRAND JURY INVESTIGATIONS THE EMERGENCE OF MS GORELICK AS A LEADING CANDIDATE WAS FIRST REPORTED BY THE NEW YORK TIMES YESTERDAY 9402030048 940203 BUSINESS BRIEF CLEAR CHANNEL COMMUNICATIONS INC COMPANY POSTS SHARP RISE IN 4THPERIOD NET REVENUE CLEAR CHANNEL COMMUNICATIONS INC SAID FOURTHQUARTER REVENUE SURGED 50 AND NET INCOME NEARLY TRIPLED SURPASSING ANALYSTS' ESTIMATES AND SENDING THE BROADCASTING COMPANY'S STOCK HIGHER CLEAR CHANNEL BASED IN SAN ANTONIO TEXAS HAD NET INCOME OF 48 MILLION OR 35 CENTS A SHARE ON REVENUE OF 479 MILLION LAST YEAR THE COMPANY POSTED FOURTHQUARTER EARNINGS OF 16 MILLION OR 14 CENTS A SHARE ON REVENUE OF 319 MILLION ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ANALYSTS HAD EXPECTED EARNINGS OF 21 CENTS A SHARE IN THE QUARTER AS A RESULT CLEAR CHANNEL SHARES ROSE 2125 OR 53 TO 4250 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CLEAR CHANNEL RAISED 58 MILLION IN A SECONDARY STOCK OFFERING DURING THE QUARTER AND COMPLETED THE ACQUISITION OF A MINNEAPOLIS TELEVISION STATION L LOWRY MAYS PRESIDENT AND CHIEF EXECUTIVE SAID THE RESULTS REFLECTED BOTH THE COMPANY'S ACQUISITIONS AND IMPROVED OPERATIONS AT EXISTING STATIONS 9402030047 940203 MARKETING & MEDIA STUDY FINDS CHANNEL ONE BOOSTS PUPILS' KNOWLEDGE CHANNEL ONE THE ADVERTISINGSUPPORTED NEWS PROGRAM BROADCAST IN SCHOOLS NATIONWIDE SLIGHTLY IMPROVES STUDENTS' KNOWLEDGE OF CURRENT EVENTS A UNIVERSITY OF MICHIGAN STUDY CONCLUDED THE STUDY COMMISSIONED BY CHANNEL ONE'S OWNER WHITTLE COMMUNICATIONS LP FOUND THAT HIGHSCHOOL STUDENTS WHO WATCHED THE DAILY PROGRAM IN 1993 PERFORMED AN AVERAGE OF 5 BETTER ON CURRENTEVENTS TESTS THAN NONVIEWING STUDENTS MIDDLESCHOOL STUDENTS PERFORMED 8 BETTER THAN NONVIEWERS ACCORDING TO THE STUDY AN EARLIER MICHIGAN STUDY WHICH SURVEYED 19901992 VIEWERS FOUND THAT CHANNEL ONE STUDENTS ON AVERAGE PERFORMED ONLY ABOUT 3 BETTER ON CURRENTEVENTS TESTS AND TYPICALLY TALKED OR DID HOMEWORK DURING THE BROADCAST JEROME JOHNSTON ONE OF THE RESEARCHERS SAID THAT EVEN THE BRIGHTEST CHANNEL ONE VIEWERS LEARN MUCH MORE IF THEIR TEACHERS DISCUSS THE MEANING OF THE NEWS ON A REGULAR BASIS PROGRAMMING ALONE DOESN'T IMPROVE STUDENT LEARNING OF CURRENT EVENTS HE CONCLUDED PEGGY CHARREN FOUNDER OF ACTION FOR CHILDREN'S TELEVISION QUESTIONED THE SIGNIFICANCE OF THE STUDY'S FINDINGS SINCE CHANNEL ONE'S PROGRAMMING INCLUDES SOME SPORTS AND ENTERTAINMENT NEWS WHAT KIND OF CURRENT EVENTS ARE THEY LEARNING ABOUT MOVIE FADS AND WHAT'S HAPPENING IN THE ENTERTAINMENT WORLD THAT'S NOT SOMETHING THEY NEED TO LEARN IN SCHOOLS SHE SAID 9402030046 940203 INTERNATIONAL BRIEF AB ELECTROLUX EARNINGS INCREASED SHARPLY IN 4TH QUARTER AND FULL YEAR AB ELECTROLUX'S EARNINGS MORE THAN DOUBLED IN THE FOURTH QUARTER AND JUMPED A BETTERTHANEXPECTED 52 FOR THE FULL YEAR THE NEWS PUSHED THE SWEDISH APPLIANCE MAKER'S SHARES UP 73 IN HEAVY TRADING IN STOCKHOLM YESTERDAY THE PROFIT SURGE WAS ATTRIBUTED TO THE WEAKER SWEDISH KRONA WHICH BALLOONED THE VALUE OF EARNINGS ABROAD AND THE POSITIVE EFFECTS OF TOUGH RESTRUCTURING AND COSTCUTTING PROGRAMS PRETAX PROFIT JUMPED TO 589 MILLION KRONOR 747 MILLION FOR THE FOURTH QUARTER FROM 280 MILLION KRONOR A YEAR EARLIER AS SALES ROSE 20 TO 2585 BILLION KRONOR FROM 2148 BILLION KRONOR FOR THE FULL YEAR PRETAX PROFIT JUMPED TO 155 BILLION KRONOR FROM 102 BILLION KRONOR SALES CLIMBED 24 TO 1001 BILLION KRONOR FROM 8044 BILLION THE PREVIOUS YEAR 9402030045 940203 BUSINESS BRIEF READER'S DIGEST ASSOCIATION INC SECONDQUARTER PROFIT ROSE DESPITE SLIGHT REVENUE DROP READER'S DIGEST ASSOCIATION INC SAID REVENUE DECLINED BUT PROFIT WAS UP IN ITS SECOND QUARTER PRIMARILY BECAUSE OF LOWER PROMOTIONAL COSTS FOR THE FISCAL SECOND QUARTER ENDED DEC 31 THE PLEASANTVILLE NY COMPANY REPORTED NET INCOME OF 888 MILLION OR 76 CENTS A SHARE UP 26 FROM 704 MILLION OR 59 CENTS A SHARE A YEAR EARLIER REVENUE SLIPPED 1 TO 8021 MILLION FROM 8067 MILLION THE COMPANY SAID THAT IT CUT BACK ON ITS PROMOTIONAL ACTIVITY IN ITS US BOOKS AND HOME ENTERTAINMENT BUSINESS AFTER SEEING REVENUE IN THOSE AREAS DECLINE THOSE MOVES HELPED THE SECONDQUARTER RESULTS BUT READER'S DIGEST DOES NOT EXPECT THE EARNINGS GROWTH RATES IN THE FIRST HALF TO CONTINUE IN THE SECOND HALF OF 1994 SAID GEORGE V GRUNE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SHARES OF READER'S DIGEST GAINED 50 CENTS TO 4450 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9402030044 940203 WORLD MARKETS TOKYO SHARES DROP ON PROFITTAKING BUT RALLIES RESUME IN EUROPE AS LONDON PARIS SET RECORDS A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO EASED WEDNESDAY ON PROFITTAKING FOLLOWING THEIR RECENT SURGE BUT LONDON'S RALLY RESUMED AND STOCKS FINISHED AT RECORD HIGHS DRIVEN PARTLY BY EXPECTATIONS FOR LOWER EUROPEAN INTEREST RATES WHICH ALSO PROPELLED THE PARIS EXCHANGE TO A NEW HIGH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11902 UP 001 REFLECTING HIGHER AMERICAN AND EUROPEAN MARKETS AND LOWER ASIA/PACIFIC MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22771 UP 949 OR 44 WITH KUMPULAN GUTHRIE OF MALAYSIA POSTING A 89 GAIN IN ITS LOCAL CURRENCY CONSUMER ELECTRONICS STOCKS TRAILED AT 13444 DOWN 309 OR 225 WITH SONY OF JAPAN SLIDING 36 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 18734 POINTS TUESDAY FELL 16631 TO 2025003 IN TRADING THURSDAY THE NIKKEI INDEX EASED 6001 POINTS TO CLOSE THE MORNING SESSION AT 2019002 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 670 MILLION SHARES STILL BRISK THOUGH DOWN FROM 9508 MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS 664391 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1388 POINTS TUESDAY DROPPED 1544 TO 162766 THE TOKYO CORRECTION HAD BEEN EXPECTED FOLLOWING THE HUGE GAINS EARLIER THIS WEEK AFTER A STRONG OPENING THE NIKKEI PLUNGED MORE THAN 200 POINTS ON ARBITRAGERELATED SELLING A WAVE OF BUYING IN AFTERNOON DEALINGS REINED IN THE DECLINES YET STOCKS' GENERALLY LIMITED DROPS SIGNALED THAT INVESTORS WERE COMFORTABLE WITH THE CURRENT PRICE RANGE FOREIGNERS PROVIDED MUCH OF THE BUYING SUPPORT AS THEY HAVE FOR THE PAST MONTH JAPANESE DEALERS AND INSTITUTIONAL INVESTORS WERE AMONG THOSE TAKING PROFITS THOUGH SOME DEALERS RESUMED BUYING LATER IN THE SESSION STILL SOME INVESTORS WERE WORRIED THAT THE JAPANESE YEN'S RECENT GAINS IN CURRENCY MARKETS THREATENED TO CUT INTO EARNINGS OF JAPANESE EXPORTERS THE YEN'S STRENGTH ALSO MAKES YENDENOMINATED ASSETS MORE EXPENSIVE FOR OVERSEAS INVESTORS A PUSH HIGHER BY THE YEN COULD COOL OVERSEAS INVESTORS' ARDOR FOR JAPANESE ASSETS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX JUMPED 388 POINTS OR 11 TO 35203 AN ALLTIME HIGH THAT TOPPED THE 3500 LEVEL FOR THE FIRST TIME THE FT 30STOCK INDEX ROCKETED UP 367 POINTS OR 14 TO 27136 AND THE FT 250 INDEX SURGED 455 POINTS OR 11 TO 41509 VOLUME WAS UNCHANGED AT 108 BILLION SHARES THE ACROSSTHEBOARD GAINS WITH FOREIGN AND US INVESTORS FIGURING HEAVILY AS BUYERS CAME DESPITE A LACK OF FRESH CORPORATE NEWS AN EASING IN BOND PRICES AND LOWER INTERESTRATE FUTURES THE STOCK MARKET'S RISE WAS LINKED TO THE FUTURES PIT WHICH WAS DRIVEN BY SPECULATION THAT GERMANY'S CENTRAL BANK MIGHT CUT INTEREST RATES TODAY AND SOME LONDON STOCK MARKET PARTICIPANTS WERE CONVINCED BRITAIN WOULD FOLLOW SUIT WITH A LENDINGRATE CUT THAT SPECULATION SENT STOCKINDEX FUTURES RALLYING EARLY CATCHING INVESTORS AND DEALERS IN THE STOCK MARKET BY SURPRISE AND FORCING THE COVERING OF SOME UNDERWEIGHTED POSITIONS BULLS ALSO WERE HEARTENED BY A STATEMENT BY BRITAIN'S TREASURY THAT THE RETAILSALES TREND REMAINS STRONGLY UPWARD AND THAT THE LATEST ECONOMIC DATA SUGGEST FURTHER RECOVERY IN FRANKFURT PRICES CLOSED MIXED TO SLIGHTLY HIGHER IN A DIRECTIONLESS SESSION AS INVESTORS WERE DIVIDED ON WHETHER GERMAN RATES WOULD BE REDUCED THE DAX 30STOCK INDEX ROSE 434 POINTS TO 218401 FOR THE FIFTH GAIN IN A ROW AND A 24 GAIN THIS WEEK IN PARIS STOCKS ADVANCED 11 TO A RECORD THE SECOND THIS WEEK AMID SNOWBALLING EXPECTATIONS FOR LOWER INTEREST RATES OPINION WAS DIVIDED ABOUT PROSPECTS FOR GERMANY THE RATESETTING LEADER TO MAKE A REDUCTION BUT PARIS INVESTORS DIDN'T LET ANY UNCERTAINTY DAMP THEIR OPTIMISM A GERMAN RATE CUT COULD CLEAR THE WAY FOR FRANCE'S CENTRAL BANK TO ACT LIKEWISE IN MILAN REVERSING EARLY DECLINES FROM PROFITTAKING SHARES ENDED SHARPLY HIGHER BUOYED BY A PUBLIC OFFERING IN THE FINANCIAL SECTOR THAT WAS POPULAR AMONG FOREIGN INVESTORS AND BY POTENTIAL TURNAROUNDS FOR SOME FINANCIALLY AILING COMPANIES IN MADRID EQUITIES REBOUNDED DRIVEN UP BY SPANISH MUTUAL FUNDS THAT HAVE BEEN HAVING HUGE GROWTH AND BY DECLINING BOND YIELDS PROVIDING SEEMINGLY ENDLESS LIQUIDITY FOR BUYING STOCKS SENTIMENT ALSO WAS HELPED BY SPECULATION ABOUT RATE CUTS IN EUROPE IN STOCKHOLM PRICES LOPED UP IN RECORD TURNOVER LED BY THE AUTO AND HOUSEHOLDAPPLIANCE SECTORS PARTLY ON FAVORABLE EARNINGS IN ZURICH SHARES ROSE PACED BY ROBUST BUYING IN THE BANKING SECTOR IN BRUSSELS PROFITTAKING KNOCKED PRICES DOWN FOLLOWING BIG GAINS IN HONG KONG AFTER SEESAW TRADING IN HEAVY TURNOVER PRICES SLIPPED INTO NEGATIVE TERRITORY LATE IN THE SESSION AND ENDED AT THEIR LOWS STOCKS TRADED UNSTEADILY BUT WITH GAINS IN A WIDE BAND MOST OF THE DAY WITH LITTLE CORPORATE NEWS TO INFLUENCE A TREND PARTICIPANTS WERE DISAPPOINTED BY CHINA'S COOL REACTION TO THE BRITISH COLONIAL GOVERNMENT'S LATEST FUNDING PROPOSALS FOR A NEW AIRPORT IN SINGAPORE SHARES FELL BECAUSE OF LATE PROFITTAKING WHILE FOREIGN INVESTORS ONLY NIBBLED SELECTIVELY AND RETAIL INVESTORS ALSO WERE QUIET BUT IN KUALA LUMPUR STOCKS SURGED 37 IN MODERATE TRADING LIFTED BY BROAD SUPPORT FOR BLUE CHIPS AND SOME FRESH SPECULATIVE PLAYS IN TAIPEI STOCKS CLIMBED 13 ON HEALTHY VOLUME FOLLOWING TUESDAY'S 1 GAIN BRINGING THE MAIN INDEX'S ADVANCE TO 73 FOR THE PAST SIX TRADING DAYS THE SEASONAL BULL RUN AHEAD OF THE HOLIDAY NEXT THURSDAY FOR THE LUNAR NEW YEAR WAS REINFORCED BY THE TAIWAN CENTRAL BANK'S RECENT EASING OF ITS TIGHT MONEY POLICY IN MANILA SHARES RALLIED 25 IN LIGHT VOLUME IN A TECHNICAL REBOUND AFTER FALLING SINCE THE PHILIPPINE GOVERNMENT LAST FRIDAY ANNOUNCED PRICE INCREASES ON PETROLEUM PRODUCTS ELECTRICITY RATES AND TRANSPORTATION FARES AND IN SEOUL PRICES ADVANCED 15 IN ROBUST ACTIVITY AS BIG HIGHPRICED BLUECHIP ISSUES CONTINUED THEIR BULL RUN DEFYING REPEATED THREATS OF SOUTH KOREAN GOVERNMENT INTERVENTION TO NARROW GAPS WITH LOWPRICED STOCKS AMONG CORPORATE DEVELOPMENTS IN PARIS ELF AQUITAINE JUMPED 67 FRENCH FRANCS OR 16 TO 4307 FRANCS 7321 THE OFFERING OF 89 MILLION SHARES IN THE PRIVATIZATION OF THE FRENCH STATECONTROLLED OIL COMPANY TO RUN TODAY THROUGH NEXT THURSDAY WAS PRICED AT 385 FRANCS A SHARE WHICH COULD RAISE A TOTAL OF AT LEAST 34 BILLION FRANCS 578 BILLION IN AMSTERDAM FOKKER SLID 190 GUILDERS OR 83 TO 21 GUILDERS 1081 AMID NEWS REPORTS THAT THE AIRCRAFT COMPANY FACES HUGE LOSSES THIS YEAR AND THAT A BOARDROOM BATTLE MAY CLAIM ADDITIONAL VICTIMS THE CHAIRMAN THIS WEEK DEPARTED FOLLOWING AN APPARENT DISPUTE ABOUT RESTRUCTURING 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 9402030043 940203 BUSINESS BRIEF LIBBEY INC FIRM EXPECTS TO POST RISE IN YEAR'S OPERATING PROFIT LIBBEY INC SAID IT EXPECTS TO POST AN OPERATING PROFIT OF AS MUCH AS 54 MILLION FOR 1993 UP FROM A 1992 PRO FORMA OPERATING PROFIT OF 471 MILLION OFFICIALS OF THE TOLEDO OHIO MAKER OF GLASS TABLEWARE SAID THEY'RE COMFORTABLE WITH ANALYSTS' ESTIMATES FOR 1993 PERSHARE EARNINGS BETWEEN 153 TO 155 COMPARED WITH 127 A YEAR EARLIER LIBBEY WHICH BECAME A PUBLICLY TRADED COMPANY IN JUNE PLANS TO RELEASE ITS FOURTHQUARTER RESULTS NEXT WEEK WE ARE CAUTIOUSLY OPTIMISTIC ABOUT 1994 AND WHAT IT OFFERS FOR US SAID JOHN F MEIER LIBBEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE FOODSERVICE INDUSTRY CONTINUES TO REBOUND HOTEL OCCUPANCY IS NOW APPROACHING THE HIGH 60 LEVEL AND OUR EXPORT BUSINESS IS GROWING 9402030042 940203 MARKETING BRIEF WALT DISNEY CO COMPANY PLANS TO REOPEN HISTORIC NEW YORK THEATER WALT DISNEY CO SAID IT TENTATIVELY AGREED TO SPEND 29 MILLION TO RESTORE AND REOPEN THE HISTORIC NEW AMSTERDAM THEATER ON WEST 42ND STREET IN NEW YORK THE RENOVATION WHICH GOVERNMMENT OFFICIALS HOPE WILL SPEED PLANS TO REVITALIZE THE 42ND STREET ENTERTAINMENT DISTRICT WILL BE FINANCED BY AN 8 MILLION DISNEY INVESTMENT AND A 21 MILLION GOVERNMENT LOAN TO THE COMPANY A DISNEY SPOKESMAN SAID AN AGREEMENT FOR THE FINANCING WAS UNVEILED BY DISNEY CHAIRMAN MICHAEL EISNER NEW YORK GOV MARIO M CUOMO AND NEW YORK MAYOR RUDOLPH W GIULIANI MR EISNER SAID THE MOVE BY THE BURBANK CALIF COMPANY MARKS ITS EXPANDING COMMITMENT TO LIVE ENTERTAINMENT THE COMPANY ALREADY IS INVOLVED IN ANOTHER MAJOR NEW YORK LIVEENTERTAINMENT VENTURE WITH ITS PREMIERE OF BEAUTY AND THE BEAST THE MUSICAL AT THE PALACE THEATER SCHEDULED FOR APRIL 7 9402030041 940203 CREDIT RATINGS REVCO DS INC TWINSBURG OHIO MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE RATING OF THIS DRUGSTORE CHAIN OPERATOR'S 140 MILLION 9125 SENIOR UNSECURED NOTES DUE 2000 TO BA1 FROM BA3 MOODY'S SAID THE RATING ADJUSTMENT REFLECTS THE BENEFIT REALIZED FROM THE RELEASE OF SECURITY AGAINST THE BANK GROUP AS WELL AS CONTINUED IMPROVEMENTS IN THE OPERATING PERFORMANCE AND THE DEBTSERVICING CAPABILITIES OF THE COMPANY HOWEVER THESE FACTORS ARE SOMEWHAT OFFSET BY THE CONTINUING PRESSURE ON GROSS MARGINS AND OTHER ITEMS THE RATINGS AGENCY SAID 9402030040 940203 BUSINESS BRIEF LUKENS INC NET LOSS FOR FOURTH QUARTER POSTED BY STEELPLATE MAKER LUKENS INC REPORTED A NET LOSS OF 78 MILLION OR 57 CENTS A SHARE FOR THE FOURTH QUARTER ENDED DEC 25 1993 REFLECTING SEVERAL RESTRUCTURING CHARGES A YEAR EARLIER THE COATESVILLE PA STEELPLATE MAKER HAD NET INCOME OF 85 MILLION OR 55 CENTS A SHARE LUKENS SAID THE LOSS REFLECTS 205 MILLION IN PRETAX PROVISIONS FOR WORKFORCE REDUCTIONS VALUATION OF DISCONTINUED OPERATIONS AND OTHER CHARGES THE CHARGES TAKEN IN THE CURRENT QUARTER REDUCED THE EARNINGS PERSHARE AMOUNT BY 85 CENTS LUKENS SAID FISCAL FOURTHQUARTER SALES DECREASED SLIGHTLY TO 2027 MILLION FROM 2048 MILLION THE YEAR BEFORE FOR ALL OF FISCAL 1993 LUKENS REPORTED A NET LOSS OF 50 MILLION OR 351 A SHARE REFLECTING ADOPTION OF SEVERAL ACCOUNTING CHANGES RELATED TO RETIREE MEDICAL AND LIFEINSURANCE BENEFITS AND ACCOUNTING FOR INCOME TAXES IN FISCAL 1992 LUKENS EARNED 331 MILLION OR 231 A SHARE FISCAL 1993 SALES TOTALED 8621 MILLION UP FROM 6958 MILLION THE YEAR BEFORE 9402030039 940203 BUSINESS BRIEF BRIDGESTONE CORP BRIDGESTONE/FIRESTONE UNIT WILL BOOST SOME PRICES 3 BRIDGESTONE/FIRESTONE INC SAID IT WILL RAISE BY 3 THE PRICES OF ALL BRIDGESTONE AND FIRESTONE PASSENGER LIGHT TRUCK MEDIUM AND HEAVY TRUCK AGRICULTURAL AND FORESTRY TIRES IN THE US REPLACEMENT MARKET THE BOOST TAKES EFFECT APRIL 1 THE NASHVILLE TENN COMPANY CITED THE ESCALATION IN RAW MATERIAL COSTS INCLUDING BOTH NATURAL AND SYNTHETIC RUBBER THE MOVE FOLLOWS SIMILAR PRICE INCREASES IN RECENT WEEKS BY RIVALS BRIDGESTONE/FIRESTONE IS A UNIT OF BRIDGESTONE CORP OF JAPAN LAST MONTH BRIDGESTONE/FIRESTONE'S DAYTON TIRE CO UNIT ANNOUNCED A 3 TO 5 PRICE INCREASE ON ITS DAYTON AND ROAD KING LINES AS WELL AS PRIVATELABEL LINES AND AN AVERAGE 3 PRICE INCREASE ON ITS SEIBERLING TIRES EFFECTIVE MARCH 1 9402030038 940203 BUSINESS BRIEF SHARP CORP UNIT TO SPEND 30 MILLION TO EXPAND LCD FACILITY SHARP MICROELECTRONICS TECHNOLOGY INC SAID IT WILL SPEND 30 MILLION TO EXPAND A LIQUID CRYSTAL DISPLAY OR LCD FACILITY AT ITS CAMAS WASH HEADQUARTERS THE PLANT WILL BEGIN PRODUCING 10000 ACTIVEMATRIX COLOR LCD UNITS A MONTH BY OCTOBER SHARP SAID THE UNIT OF JAPANBASED SHARP CORP SAID THE EXPANSION IS NEEDED TO MEET THE STRONG DEMAND FOR THE LCD PANELS USED IN COLOR LAPTOP AND NOTEBOOK COMPUTERS IN ADDITION TO THE PRODUCTION EXPANSION SHARP IS ALSO ESTABLISHING AN ADVANCED TECHNOLOGY DEVELOPMENT CENTER FOR LCD RESEARCH THE WORK FORCE IS EXPECTED TO INCREASE TO 510 BY THE END OF NEXT YEAR FROM 350 IT SAID 9402030037 940203 BUSINESS BRIEF ROCHESTER TELEPHONE CORP EARLYRETIREMENT BENEFIT IS OFFERED TO SOME WORKERS ROCHESTER TELEPHONE CORP ANNOUNCED A VOLUNTARY EARLYRETIREMENT PLAN THAT INCLUDES ENHANCED PENSION BENEFITS AND SAID IT EXPECTS THAT 50 TO 100 OF ITS EMPLOYEES WILL OPT FOR IT THE ROCHESTER NY COMPANY SAID THAT UNDER THE PROGRAM IT WILL GRANT CERTAIN ELIGIBLE EMPLOYEES AN ADDITIONAL FIVE YEARS' WORTH OF AGE AND SERVICE ACCRUED AS OF MARCH 31 1994 WHICH WILL BE CONSIDERED WHEN DETERMINING AN EMPLOYEE'S PENSION ROCHESTER TELEPHONE SAID IT ESTIMATES THAT ABOUT 1400 OF ITS WORKERS ARE ELIGIBLE FOR THE PROGRAM WITH 400 OF THEM ELIGIBLE TO RECEIVE A SERVICE PENSION IMMEDIATELY THOSE EMPLOYEES WHO DECIDE TO RETIRE BY MARCH 31 AND WHO DECLARE THEIR INTENTION BY MARCH 15 WILL RECEIVE THE PREPENSIONLEAVE BENEFIT WHICH IS BEING DISCONTINUED THE COMPANY SAID 9402030036 940203 BUSINESS BRIEF AMERICA WEST AIRLINES CARRIER EXTENDS FARE SALE ON ITS LEISURECLASS TICKETS AMERICA WEST AIRLINES SAID IT EXTENDED A FARE SALE THAT OFFERS DISCOUNTS OF AS MUCH AS A THIRD OFF ITS LEISURECLASS TICKETS THE AIRLINE SAID TICKETS MUST BE PURCHASED BY FEB 22 FOR TRAVEL BY MAY 15 AND REQUIRE 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY PHOENIXBASED AMERICA WEST HAS OFFERED THESE LOWER FARES OFF AND ON FOR THE PAST YEAR A SPOKESWOMAN SAID AND THEY'VE BEEN VERY SUCCESSFUL FOR US OTHER AIRLINES ARE LIKELY TO MATCH THE LOWER TICKET PRICES IN MARKETS WHERE THEY COMPETE HEADTOHEAD WITH AMERICA WEST 9402030035 940203 TECHNOLOGY BRIEF CABLETRON SYSTEMS INC COMPUTER CONCERN TO UNVEIL UPGRADE OF NETWORK HUB CABLETRON SYSTEMS INC NEXT WEEK WILL UNVEIL A NEXTGENERATION COMPUTER NETWORK HUB PUSHING THE COMPANY INTO NEW MARKETS SAID CRAIG BENSON CHAIRMAN AND CHIEF OPERATING OFFICER MR BENSON SAID THE PRODUCT WILL OFFER MORE DATA CAPACITY THAN COMPETITORS' PRODUCTS AND WILL HAVE A MAJOR IMPACT ON CABLETRON'S REVENUE LATER THIS YEAR AND IN 1995 HE SAID THE ROCHESTER NH COMPANY HAS SPENT 100 MILLION DEVELOPING THE NEW LINE THE PRODUCT WILL BE UNVEILED MONDAY AND THE FIRST UNITS WILL BE SHIPPED IN MAY RICK KIMBALL AN ANALYST AT MONTGOMERY SECURITIES EXPECTS CABLETRON TO POST NET INCOME FOR THE FISCAL FOURTH QUARTER ENDING FEB 28 OF 328 MILLION OR 115 A SHARE ON REVENUE OF 167 MILLION IN THE YEAREARLIER PERIOD NET WAS 245 MILLION OR 87 CENTS ON REVENUE OF 123 MILLION 9402030034 940203 INTERNATIONAL BRIEF PREUSSAG AG FISCAL '93 NET PLUNGED 56 BOARD SHAKEUP IS ANNOUNCED PREUSSAG AG HANOVER GERMANY REPORTED A 56 PLUNGE IN FISCAL 1993 PROFIT AND ANNOUNCED A MANAGEMENT SHAKEUP THE METALS AND ENGINEERING CONCERN SAID GROUP PROFIT DROPPED TO 193 MILLION MARKS 1113 MILLION IN THE YEAR ENDED SEPT 30 FROM 440 MILLION MARKS A YEAR EARLIER THE YEARLY DIVIDEND HOWEVER WILL REMAIN AT 10 MARKS A SHARE THE COMPANY SAID PREUSSAG DIDN'T ELABORATE ON THE PROFIT DECLINE BUT THE RESULT PARTLY REFLECTS A PREVIOUSLY ANNOUNCED LOSS OF 103 MILLION MARKS AT THE COMPANY'S 51OWNED FRENCH SUBSIDIARY METALEUROP SA PREUSSAG PREVIOUSLY REPORTED THAT FISCAL 1993 GROUP SALES FELL 89 TO 233 BILLION MARKS MEANWHILE PREUSSAG SAID MANAGEMENT BOARD MEMBERS MAXIMILIAN ARDELT AND SIEGFRIED JAECK WILL STEP DOWN IMMEDIATELY BY MUTUAL AGREEMENT THE DEPARTURES ARE PART OF A GENERAL REORGANIZATION IN PREUSSAG'S MANAGEMENT BOARD A COMPANY SPOKESMAN SAID 9402030027 940203 BUSINESS BRIEF OHM CORP CONCERN WINS NAVY PACT TO CLEAN UP VARIOUS SITES OHM CORP SAID IT WAS AWARDED A 250 MILLION ENVIRONMENTAL REMEDIATION CONTRACT BY THE US NAVY FOR AN INITIAL BASE PERIOD WHICH MAY BE EXTENDED FOR FOUR ADDITIONAL OPTION PERIODS THE 250 MILLION POTENTIAL VALUE EXTENDS OVER THE FIVE YEARS THE CONTRACT PROVIDES THAT OHM WILL CLEAN UP ENVIRONMENTALLY CONTAMINATED SITES AT NAVY MARINE CORPS AND OTHER GOVERNMENT INSTALLATIONS LOCATED IN HAWAII GUAM AND OTHER PACIFIC AND INDIAN OCEAN AREAS OHM OF FINDLAY OHIO IS AN ONSITE HAZARDOUSWASTE REMEDIATION FIRM WITH ANNUAL REVENUE OF 209 MILLION IN 1992 9402030025 940203 CORRECTIONS & AMPLIFICATIONS A TABLE ACCOMPANYING TUESDAY'S ARTICLE ON BROKERAGEHOUSE STOCK PICKS CONTAINED ERRORS HARCOURT GENERAL INC DECLINED 19 NOT 27 WHILE RECOMMENDED BY CS FIRST BOSTON CORP IN THE FOURTH QUARTER THE FIRM'S BIGGEST QUARTERLY LOSER THEREFORE WASN'T HARCOURT BUT UNION TEXAS PETROLEUM HOLDINGS INC DOWN 23 AS A RESULT CS FIRST BOSTON'S LIST WAS UP 01 FOR THE QUARTER INSTEAD OF DOWN 01 FOR THE YEAR IT WAS UP 124 NOT 122 THE BIGGEST WINNER RECOMMENDED BY RAYMOND JAMES & ASSOCIATES INC IN THE QUARTER WAS CORDIS CORP UP 54 RATHER THAN STANLEY FURNITURE CO UP 41 THE ERRORS WERE MADE BY ZACKS INVESTMENT RESEARCH INC WHICH PREPARED THE TABLE EASTMAN KODAK CO'S STOCK CLOSED AT 44125 A SHARE ON JAN 31 DOWN 08 FROM DEC 31 1993 YESTERDAY'S INVESTMENT INSIGHT TABLE INCORRECTLY STATED THAT THE STOCK FELL 2156 BECAUSE IT FAILED TO ACCOUNT FOR THE SPINOFF OF EASTMAN CHEMICAL CO 9402030024 940203 BUSINESS BRIEF AMERICAN BARRICK RESOURCES CORP NET FELL 21 IN 4TH QUARTER GOLD VENTURE SET FOR CHINA AMERICAN BARRICK RESOURCES CORP'S REPORTED A 21 DECLINE IN FOURTHQUARTER EARNINGS AND ANNOUNCED A JOINT VENTURE TO DEVELOP GOLD PROPERTIES IN CHINA THE TORONTO GOLD PRODUCER SAID NET INCOME FELL TO 518 MILLION FROM 655 MILLION A YEAR EARLIER WHEN GRADE WAS UNUSUALLY HIGH AT THE COMPANY'S GOLDSTRIKE MINE IN NEVADA REVENUE DROPPED TO 1702 MILLION FROM 200 MILLION FOR ALL 1993 EARNINGS ROSE 22 TO 2134 MILLION AS REVENUE CLIMBED TO 6675 MILLION FROM 5404 MILLION GOLD PRODUCTION REACHED 16 MILLION OUNCES COMPARED WITH 13 MILLION OUNCES A YEAR EARLIER BARRICK SAID IT FORMED A JOINT VENTURE WITH POWER CORP OF CANADA TO DEVELOP GOLD PROPERTIES IN CHINA ROBERT SMITH BARRICK'S PRESIDENT SAID THE COMPANY WILL COMPLETE A FEASIBILITY STUDY THIS YEAR FOR A PROPERTY IN NORTHERN CHINA AND OTHER PROPERTIES ARE BEING EXAMINED POWER CORP A MONTREAL FINANCIAL SERVICES AND MEDIA CONCERN WILL HOLD 25 OF THE VENTURE AND BARRICK WILL HOLD THE REST 9402030023 940203 LEISURE & ARTS BOOKSHELF FOLLOWING THE PAPER'S TRAIL BY JOE QUEENAN WE'RE NOT AN EASY PAPER TO FALL INTO NEW YORK TIMES PUBLISHER ARTHUR OCHS PUNCH SULZBERGER ONCE REMARKED TOWARD THE END OF HIS CAREER YOU'VE GOT TO WORK AT IT YOU COULD SAY THE SAME THING ABOUT EDWIN DIAMOND'S BOOK BEHIND THE TIMES INSIDE THE NEW YORK TIMES VILLARD 448 PAGES 24 MR DIAMOND MAKES HIS LIVING AS A MEDIA CRITIC FOR NEW YORK MAGAZINE WHICH MEANS THAT HE WRITES ABOUT WHAT OTHER PEOPLE WRITE AND SOMETIMES WRITES ABOUT WHAT OTHER PEOPLE HAVE WRITTEN ABOUT WHAT OTHER PEOPLE HAVE WRITTEN BEHIND THE TIMES IS PRIMARILY DEVOTED TO THE LAST 30 YEARS IN TIMES HISTORY WHEN EDITOR AM ABE ROSENTHAL AND HIS SUCCESSOR MAX FRANKEL BROADENED THE SCOPE OF THE PAPER BY MAKING IT LIGHT AND UP MR DIAMOND PORTRAYS MR ROSENTHAL AS A FIERCELY TERRITORIAL MAN WHO OUTMANEUVERED MORE GIFTED RIVALS THROUGH TENACITY AND AN ABILITY TO INTUIT THE WISHES OF THE SULZBERGER FAMILY WHICH HAS OWNED THE TIMES SINCE 1896 ONE OF THOSE WISHES WAS TO KEEP THE TIMES PROFITABLE DURING AN ERA WHEN AMERICANS WERE READING FEWER PAPERS AND WATCHING MORE TV MR ROSENTHAL DID THIS BY ADDING PUFFY MAGAZINELIKE SECTIONS AND PLACING GREAT EMPHASIS ON FOOD FASHION COMPUTERS ROCKANDROLL AND THE FATE OF THE DINOSAURS THE HISTORY OF DUMBING DOWN WON'T COME AS A SURPRISE TO SEASONED TIMES READERS NOR WILL MR DIAMOND'S REHASHES OF SUCH WIDELY DISCUSSED CONTROVERSIES AS THE TIMES' DECISION TO PUBLISH THE NAME OF THE YOUNG WOMAN ALLEGEDLY RAPED BY WILLIE KENNEDY SMITH OR TO TREAT THE PUBLICATION OF KITTY KELLEY'S SCURRILOUS BOOK ABOUT THE REAGAN FAMILY AS A NEWS STORY MUCH OF THE BOOK SEEMS LIKE AN OPPORTUNITY FOR MR DIAMOND TO RECYCLE WELLWORN MATERIAL AND TO SUPPLY INCONTROVERTIBLE EVIDENCE THAT EMPLOYEES OF THE TIMES ARE NOT AN ESPECIALLY MIRTHFUL LOT THERE ARE ALSO WOEFUL OMISSIONS MR DIAMOND APPARENTLY ISN'T AWARE THAT ONEFOURTH OF THE DAILY TIMES IS DEVOTED TO BUSINESS NEWS A SECTION THAT HAS VASTLY IMPROVED IN THE PAST DECADE STILL THERE ARE NICE FLOURISHES IN RECOUNTING HOW EDITORIAL PAGE EDITOR JOHN OAKES WAS DEPOSED BY HIS OWN COUSIN PUNCH AND HOW MR ROSENTHAL HIMSELF WAS NUDGED INTO SEMIRETIREMENT AS A PARTTIME PONTIFICATOR MR DIAMOND SUGGESTS THAT EMPLOYEES ONLY APPEAR TO BE RUNNING THE SHIP THAT ALL THE IMPORTANT MANAGERIAL DECISIONS ARE CARRIED OUT BY THE SECRET HAND OF THE SULZBERGERS MR DIAMOND DOES A GOOD JOB OF FLESHING OUT MR ROSENTHAL AS A RUTHLESS PRACTITIONER OF MANAGEMENT BY NASTY MEMO HE ALSO PROVIDES FINE EXAMPLES OF THE PAPER'S FAMOUS IMPERSONALITY NOTES SPORTSWRITER DAVE ANDERSON A 28YEAR VETERAN IF VINCENT CANBY OR ANNA QUINDLEN GOT ON THIS ELEVATOR WITH ME TODAY I WOULDN'T RECOGNIZE EITHER OF THEM ON MS QUINDLEN MR DIAMOND QUITE ADMIRABLY NOTES THAT THE CROWN PRINCESS OF YUPPIE WHINERS HASN'T HAD AN ORIGINAL THOUGHT IN YEARS HE ALSO TAKES A SHOT AT THE TIMES FOR ELEVATING PINHEAD MUSIC CRITIC JON PARELES TO A POSITION OF POWER MR PARELES IS THE ADDLED YOUTH WHO HAS REPEATEDLY GONE TO BAT FOR ANTISEMITIC HOMOPHOBIC SOCIOPATHIC SEXIST GANGSTA RAPPERS AS PART OF THE NEWSPAPER'S OFTEN PATHETIC ATTEMPT TO SEEM CUTTINGEDGE MR PARELES IS JUST THE SORT OF BONEHEAD THAT JOHN CORRY VAINLY ATTEMPTED TO TAKE ON DURING THE WANING DAYS OF HIS 31YEAR STINT AT THE TIMES MR CORRY WHO STARTED OUT AS A COPY BOY IS THE AUTHOR OF MY TIMES ADVENTURES IN THE NEWS TRADE PUTNAM 248 PAGES 2495 THIS IS A VERY READABLE MEMOIR BY A MAN WHO AFTER A LIFETIME OF EXEMPLARY WORK FOR THE TIMES FOUND HIMSELF GENTLY ENCOURAGED BY MR FRANKEL TO GO ELSEWHERE WHAT GOT MR CORRY IN TROUBLE WERE HIS BLATANTLY RIGHTOFCENTER ARTICLES WRITTEN WHEN HE SERVED AS THE PAPER'S FIRST TV NEWS CRITIC IN THE MID1980S RIPPING INTO 60 MINUTES FOR DISMANTLING THE DISTINCTION BETWEEN ENTERTAINMENT AND JOURNALISM MR CORRY CLAIMS THAT THE POWERSTHATBE AT CBS USED EVERY POWER AVAILABLE TO HAVE HIM MUZZLED MR CORRY ALSO MADE WAVES BY SUGGESTING THAT AN ABC MOVIE ENCOURAGING COMPASSION TOWARD CHILD MOLESTERS WAS IDIOTIC LONG BEFORE HIS MISFORTUNES AS TV NEWS CRITIC MR CORRY HAD CREATED PROBLEMS FOR HIMSELF BY CROSSING THE FLATULENT JAMES RESTON ANNA QUINDLEN WITH A PIPE AND BY WRITING AN ARTICLE CONTENDING THAT THE POLISH EMIGRE NOVELIST JERZY KOSINSKI HAD BEEN THE VICTIM OF A PLOT BY POLISH COMMUNISTS TO PERSUADE THE WESTERN PRESS THAT HIS BOOKS HAD BEEN GHOSTWRITTEN AND THAT HE HIMSELF WAS CONNECTED TO THE CIA OFTEN MY TIMES READS LIKE THE MEMOIRS OF A CRANKY OLD GEEZER WHY DON'T THESE CUB REPORTERS DRINK ANY ROTGUT AND WHERE THE HELL DID ALL THESE WOMEN COME FROM AND MR CORRY TELLS US FAR MORE ABOUT HIS PERSONAL LIFE THAN WE NEED TO KNOW BUT HE MAKES UP FOR THIS WITH A BITTERSWEET WELLWRITTEN PAEAN TO AN INSTITUTION THAT NO LONGER EXISTS THE HARDNEWS NONONSENSE TIMES AND HE COMES AS CLOSE AS ANYONE HAS EVER COME TO EXPLAINING WHY EVEN SO YOUNG PEOPLE STILL BECOME JOURNALISTS INSTEAD OF LAWYERS OR UPSCALE CATERERS WHEN HE SAYS EACH STORY I WROTE DEFINED ME IN A SOCIETY WHERE SO MANY ACHE TO BE HEARD A BYLINE WAS BETTER THAN MONEY IT STILL IS 9402030022 940203 BLOCKBUSTER POSTS 71 RISE IN PROFIT FOR FOURTH PERIOD BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE FORT LAUDERDALE FLA VIDEO AND MUSIC RETAILER'S RESULTS CAME IN AT THE HIGH END OF ANALYSTS' ESTIMATES FOURTHQUARTER NET INCOME ROSE TO 813 MILLION OR 34 CENTS A SHARE FROM 476 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 66 TO 7237 MILLION FROM 4367 MILLION REVENUE AT BLOCKBUSTER VIDEO STORES OPEN FOR MORE THAN A YEAR INCREASED 55 IN THE QUARTER AND 92 FOR THE YEAR SAMESTORE SALES FIGURES FOR THE COMPANY'S MUSIC STORES AREN'T YET AVAILABLE GREGORY K FAIRBANKS BLOCKBUSTER'S VICE CHAIRMAN SAID 35 OF FOURTHQUARTER REVENUE AND 32 OF OPERATING PROFIT CAME FROM THE COMPANY'S MUSIC RETAILING PROGRAMMING AND DISTRIBUTION OPERATIONS DURING THE FOURTH 1992 QUARTER WHEN BLOCKBUSTER WAS IN THE PROCESS OF MAKING ACQUISITIONS IN THOSE AREAS ONLY 17 OF REVENUE AND LESS THAN 10 OF OPERATING PROFIT WAS GENERATED BY THE COMPANY'S NONVIDEO BUSINESSES MR FAIRBANKS SAID CRAIG BIBB AN ANALYST AT PAINEWEBBER SAID BLOCKBUSTER CONTINUES TO REAP THE BENEFITS OF THOSE ACQUISITIONS THE PROFITABILITY OF THE MUSIC STORES HAS BEEN BETTER THAN EXPECTED PARTLY BECAUSE OF THE SUCCESSFUL INTEGRATION OF THE MUSIC CHAIN'S BACKOFFICE OPERATIONS INTO BLOCKBUSTER ALSO SYNDICATION REVENUE FROM SPELLING ENTERTAINMENT GROUP PROGRAMS HAS BEEN STRONG HE ADDED BLOCKBUSTER OWNS 705 OF SPELLING AS WELL AS 35 OF REPUBLIC PICTURES CORP SPELLING AND REPUBLIC WHICH PRODUCE AND DISTRIBUTE FILM AND TELEVISION SHOWS HAVE ANNOUNCED PLANS TO MERGE A MOVE THAT IS EXPECTED TO BE COMPLETED BY THE END OF MARCH BLOCKBUSTER ITSELF IS BEING ACQUIRED BY VIACOM INC AN ENTERTAINMENT COMPANY WITH INTERESTS IN CABLETV RADIO AND OTHER RELATED BUSINESSES BLOCKBUSTER SAID YESTERDAY THAT THE TRANSACTION IS LIKELY TO BE COMPLETED IN THE SECOND QUARTER FOR THE YEAR BLOCKBUSTER SAID EARNINGS JUMPED 64 TO 2436 MILLION OR 110 A SHARE FROM 1483 MILLION OR 76 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 69 TO 223 BILLION FROM 132 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BLOCKBUSTER STOCK DROPPED 75 CENTS TO 26875 A SHARE SOME ANALYSTS SAID BLOCKBUSTER'S STRONG RESULTS TOOK A BACK SEAT TO CONCERNS ABOUT THE VIACOM/BLOCKBUSTER BID FOR PARAMOUNT COMMUNICATIONS INC PAUL MARSH OF NATWEST SECURITIES CORP LOWERED HIS RATING ON BLOCKBUSTER STOCK FROM ACCUMULATE TO BUY BECAUSE OF WHAT HE SAW AS FUTURE VULNERABILITY IN BLOCKBUSTER'S STOCK PRICE 9402030021 940203 HOUSING SOME HOME BUILDERS START THINKING STEEL BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS LATE AFTERNOON SUNLIGHT GLINTS OFF THE STEEL SKELETON OF A MODEL HOUSE HOME BUILDERS HERE FOR A RECENT CONVENTION STOMP ACROSS A FLOOR SCREWED TO THE STEEL FRAME TESTING ITS STRENGTH OTHERS PROD POKE AND KICK AT THE STRANGE BEAST ONE THROWS UP HIS HANDS AND WAILS SO THIS IS THE FUTURE MAYBE FOR YEARS A FEW BUILDERS HAVE USED STEEL INSTEAD OF WOOD TO FRAME HOUSES AND SKYROCKETING LUMBER PRICES HAVE TRIGGERED A SURGE IN THOSE USING OR INTERESTED IN THE MATERIAL BUT SOME BUILDERS ARGUE THAT IF STEEL REALLY BITES INTO THE LUMBER MARKET THE PRESSURE ON THE TIMBER SUPPLY WILL DECREASE AND THE PRICE WILL DROP STILL TIMBER PRICES HAVE NEARLY DOUBLED IN THE PAST TWO YEARS ADDING AS MUCH AS 5000 TO THE COST OF A HOUSE AND BECAUSE OF LAWSUITS BY ENVIRONMENTALISTS EVEN THE MEAGER AMOUNT OF LUMBER THE CLINTON ADMINISTRATION PROMISED FROM FEDERAL LAND HASN'T BEEN CUT THAT HAS CREATED A SHORTAGE THAT COULD SEND PRICES CLIMBING ANOTHER 20 ACCORDING TO LYNN O MICHAELIS CHIEF ECONOMIST AT WEYERHAEUSER CO A TACOMA WASH TIMBER CONCERN AS A RESULT BUILDERS ARE LOOKING FOR ALTERNATIVES TO WOOD AND THE MOST WIDELY TOUTED IS GALVANIZED STEEL EVERYBODY'S LOOKING AT IT SAYS ROBERT LEWIS PRESIDENT OF LEWIS HOMES OF NEVADA PROPONENTS RHAPSODIZE ABOUT THE MATERIAL THREE TO FOUR RECYCLED CARS WILL PRODUCE A STEEL HOUSE FRAME COMPARED WITH 15000 BOARD FEET OF LUMBER STEEL DOESN'T BURN WARP ROT OR ATTRACT TERMITES AND FIRE INSURANCE DROPS ON STEEL HOUSES SCREWED TOGETHER INSTEAD OF NAILED STEEL HOMES HAVE WEATHERED HURRICANES BETTER THAN TRADITIONAL HOUSES WHOSE ROOFS BLOW OFF WHEN NAILS PULL OUT BUILDERS' INTEREST IN STEEL MOVES IN LOCKSTEP WITH LUMBER PRICES A FEW RESIDENTIAL BUILDERS HAVE USED STEEL SINCE THE 1920S AND INTERMITTENT LUMBER PRICE SPIKES HAVE PIQUED CURIOSITY ABOUT THE MATERIAL WHICH COSTS ABOUT THE SAME AS WOOD AT CURRENT PRICES A SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS RECENTLY FOUND THAT 11 OF THOSE QUESTIONED ALREADY USE STEEL FRAMING AND A THIRD PLAN TO TRY THE MATERIAL TWO YEARS AGO THE ASSOCIATION FOUND ONLY 20 INTERESTED AND A SCANT 1 USING ANY STEEL THE AMERICAN IRON AND STEEL INSTITUTE EXPECTS 75000 STEEL HOMES TO BE PUT TOGETHER THIS YEAR UP FROM 20000 LAST YEAR AND A MERE 500 IN 1992 BUT THERE IS ALSO RESISTANCE THERE HAS BEEN A LOT OF HOOPLA ABOUT STEEL EVERYTIME THERE'S A LUMBER CRISIS SAYS ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE OF TOLL BROTHERS INC A LARGE BUILDER IN HUNTINGDON VALLEY PA JUST AS SOON AS YOU GET READY TO PUT IN YOUR ORDER FOR STEEL STUDS LUMBER PRICES COME DOWN I WON'T BECOME INTERESTED IN STEEL UNTIL IT BECOMES SIGNIFICANTLY CHEAPER THAN LUMBER AND WE SEE HOW THE CONSUMERS REACT ADDS IRA C NORRIS CHAIRMAN AND CHIEF EXECUTIVE OF INCO HOMES CORP IN UPLAND CALIF SO DO BUILDERS WHICH EXPLAINS THE SKEPTICISM AT THE HOME BUILDERS CONVENTION HERE RECENTLY WHEN THOUSANDS OF PEOPLE INSPECTED A 1350SQUAREFOOT STEELFRAME CONSTRUCTION IN A PARKING LOT BUILDERS ALSO HAVE OTHER OPTIONS THAN STEEL INCLUDING CONSTRUCTING FEWER OR SMALLER HOMES AND USING LESS WOOD POURING CONCRETE PATIOS SAY INSTEAD OF PUTTING IN A WOOD DECK MORE THAN A THIRD OF THOSE IN THE ASSOCIATION SURVEY SAID THEY WERE ALREADY USING ENGINEERED WOOD PRODUCTS IN WHICH CHEAP WOOD PARTS ARE GLUED TOGETHER AND ALMOST A QUARTER SAID THEY WOULD USE THEM IN THE FUTURE IT'S NOT STEEL VS WOOD I USE A LOT OF WOOD SAYS BRUCE WARD A BUILDER FROM SALEM ORE WHOSE COMPANY RESTEK INC PROMOTES THE USE OF STEEL AND TEACHES OTHERS HOW TO BUILD WITH IT MR WARD HAS BEEN MAKING HOMES OUT OF LIGHT GAUGE STEEL FOR 16 YEARS I THINK IT'S A SUPERIOR PRODUCT HE SAYS CLAD IN WOOD AND OTHER TRADITIONAL MATERIALS STEEL HOMES DON'T LOOK ANY DIFFERENT STEEL DOES HAVE PROBLEMS THOUGH METAL IS MORE CONDUCTIVE THAN WOOD SO IT HEATS UP AND COOLS OFF FASTER AND THUS REQUIRES MORE INSULATION AFTER SITTING AT A BUILDING SITE IN THE HOT SUN STEEL STUDS CAN BURN UNGLOVED HANDS AND WHILE INTERIOR STEEL STUDS ARE FAIRLY WIDELY AVAILABLE EXTERIOR STEEL FRAMING MATERIAL STILL ISN'T WIDELY DISTRIBUTED BUT THE BIGGEST DRAWBACK IS UNFAMILIARITY FEW CONSTRUCTION WORKERS KNOW THE MATERIAL WELL AND ITS INTRODUCTION SLOWS DOWN BUILDING THOUGH BACKERS SAY THAT CREWS CAN BE UP TO SPEED WITH STEEL AFTER A FEW PROJECTS STEEL'S KEY SELLING POINT IS ITS RELATIVE PRICE STABILITY COMPARED WITH TIMBER'S FREQUENT ROLLERCOASTER RIDES LAST WEEK LUMBER WAS SELLING FOR 370 PER THOUSAND BOARD FEET UP 10 FROM A YEAR AGO BUT DOWN 28 FROM ITS PEAK IN DECEMBER WE GOT SLAUGHTERED FOR 2 MILLION LAST YEAR BECAUSE OF PRICE SPIKES SAYS MR TOLL STEEL PRICES MEANWHILE ARE UP LESS THAN 10 THIS YEAR AND CAPACITY CAN BE INCREASED IN A YEAR TO RESPOND TO DEMAND THAT MEANS THAT DEVELOPMENTS IN THE HOUSING MARKET ARE BEING WATCHED CLOSELY IN TIMBER COUNTRY STEEL WILL MAKE SOME INROADS CONCEDES MR MICHAELIS THE WEYERHAEUSER ECONOMIST IF LUMBER PRICES DO COME BACK DOWN THE QUESTION IS WILL BUILDERS COME BACK TO TRADITIONAL PRODUCTS 9402030020 940203 INTERNATIONAL MOTOROLA SQUARES OFF AGAINST JAPAN IN NEW FIGHT FOR COMPARABLE' ACCESS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MOTOROLA INC ONE OF THE MOST PROMINENT US SUCCESS STORIES IN JAPAN HAS HAD TO FIGHT AGAINST JAPAN INC FOR THE ACCESS TO JAPAN'S MARKET IT HAS ACQUIRED NOW MOTOROLA IS ONCE AGAIN IN A BATTLE TO GAIN COMPARABLE ACCESS WHERE IT FEELS IT HAS BEEN DENIED IN A REPRISE OF A SIMILAR 1989 FIGHT THE COMPANY HAS ENLISTED THE HELP OF THE US GOVERNMENT WHICH WILL DECIDE BY FEB 15 WHETHER JAPAN HAS VIOLATED ITS EARLIER AGREEMENT TO ALLOW FOREIGN COMPANIES INTO ITS CELLULAR TELEPHONE MARKET DESPITE THE PREVIOUS TRADE AGREEMENT WE WERE NOT GETTING THE KIND OF COMPARABLEMARKET ACCESS MOTOROLA EXPECTED SAYS SKIP ORR DIRECTOR OF GOVERNMENT RELATIONS AT THE COMPANY'S JAPAN UNIT IT'S BEEN A NINEYEAR PROCESS MOTOROLA HAS BENT OVER BACKWARD TO RESOLVE THIS SITUATION MOTOROLA'S EXPERIENCE DEMONSTRATES AGAIN THE FRAGILITY OF USJAPAN TRADE PACTS WHICH HAVE SHOWN A DISTRESSING TENDENCY TO UNRAVEL YEARS AFTER THE TWO SIDES THOUGHT MATTERS HAD BEEN SOLVED EVEN NOW THE US AND JAPAN MAY BE REPEATING THAT PROCESS IN THEIR CURRENT NEGOTIATIONS UNDER A PREVIOUSLY AGREED TRADE FRAMEWORK AN EFFORT THAT INCLUDES TALKS ON JAPAN'S PROCUREMENT OF TELECOMMUNICATIONS EQUIPMENT THE CELLULAR DISPUTE HOWEVER IS ALSO EMBLEMATIC OF THE BUSINESS AND BUREAUCRATIC OBSTACLES THAT FOREIGN HIGHTECH MANUFACTURERS PARTICULARLY THOSE IN THE AREA OF TELECOMMUNICATIONS MUST OVERCOME IN JAPAN MOTOROLA HAS THE ADVANTAGE OF ARGUING ITS CASE FROM A STRONG POSITION THANKS TO ITS TECHNOLOGY AND A CLOSE PARTNERSHIP WITH DDI CORP ONE OF SEVERAL NEW LONGDISTANCE COMPANIES THAT HAVE TAKEN ON FORMER MONOPOLY NIPPON TELEGRAPH & TELEPHONE CORP MOTOROLA HAS ESTABLISHED ITS CELLULAR BASE STATIONS AND PHONE HANDSETS ACROSS JAPAN THE COMPANY DOESN'T RELEASE SALES OR EARNINGS FIGURES FROM THE JAPANESE MARKET MOTOROLA IN FACT IS DDI'S SOLE SUPPLIER OF CELLULAR NETWORK EQUIPMENT IN THE EIGHT GEOGRAPHIC REGIONS WHERE DDI COMPETES DIRECTLY AGAINST NTT'S CELLULAR SYSTEM THE MUCH SMALLER COMPANY HAS GRABBED ROUGHLY HALF THE MARKET FROM ITS LARGER RIVAL PART OF THE REASON FOR OUR SUCCESS IN THE CELLULAR MARKET IS THAT THE MOTOROLA INFRASTRUCTURE IS SUPERIOR IN MANY MANY RESPECTS TO THAT OF NTT SAYS SACHIO SEMMOTO A SENIOR VICE PRESIDENT AT DDI EVEN BUREAUCRATS AT THE MINISTRY OF POSTS AND TELECOMMUNICATIONS CONCEDE THAT MOTOROLA DOESN'T FIT THE COMMON STEREOTYPE OF THE FOREIGN COMPANY THAT DOESN'T TRY HARD ENOUGH TO SUCCEED IN JAPAN I BELIEVE MOTOROLA UNDERSTANDS THE JAPANESE MARKET VERY WELL IF YOU LOOK AT THE SUCCESS THEY'VE ALREADY HAD SAYS SHUN SAKURAI DIRECTOR OF THE POSTAL MINISTRY'S TRADE POLICY OFFICE NEVERTHELESS MOTOROLA HAS HIT A BRICK WALL IN A DENSELY POPULATED 155 MILELONG CORRIDOR THAT STRETCHES SOUTH FROM TOKYO ALONG THE EASTERN COAST OF JAPAN TO NAGOYA OUTSIDE THAT REGION MOTOROLA'S CELLULAR NETWORK EQUIPMENT SERVES ROUGHLY 369000 PEOPLE INSIDE WHERE ROUGHLY HALF OF JAPAN'S ESTIMATED 17 MILLION CELLULAR SUBSCRIBERS LIVE MOTOROLA'S EQUIPMENT SERVES A MERE 12900 PEOPLE THE REASONS FOR THAT DISPARITY RUN BACK TO 1989 WHEN THE US AND JAPAN REACHED AN AGREEMENT AFTER LONG INSISTING OTHERWISE THE POSTAL MINISTRY SUDDENLY FOUND IT WAS ABLE TO ALLOCATE A CHUNK OF THE TOKYONAGOYA RADIO SPECTRUM TO TACS THE CELLULAR SYSTEM USED BY MOTOROLA AND DDI TACS ISN'T COMPATIBLE WITH NTT'S CELLULAR SYSTEM THE MINISTRY HOWEVER DIDN'T LICENSE THE NEW FREQUENCIES TO DDI WHICH ALREADY USED MOTOROLA EQUIPMENT OUTSIDE OF TOKYO AND NAGOYA INSTEAD THE MINISTRY HANDED THEM TO IDO CORP ANOTHER LONGDISTANCE COMPANY WHICH HAD ALREADY BEGUN INSTALLING AN NTTSTYLE CELLULAR SYSTEM MR SAKURAI SAYS THAT ALLOWING DDI INTO THE TOKYONAGOYA MARKET WOULD HAVE VIOLATED MINISTRY POLICY BY ALLOWING TOO MANY COMPETITORS IN THAT MARKET IDO SUDDENLY FOUND ITSELF INSTALLING A NEW CELLULAR NETWORK THAT WOULD COMPETE DIRECTLY WITH ITS EXISTING NTTSTYLE SERVICE THE RESULTS HAVEN'T PLEASED ANYONE AS OF JANUARY IDO HAD SPENT 65 BILLION YEN 600 MILLION TO INSTALL 410 BASE STATIONS FOR THE NTT SYSTEM BUT ONLY 35 BILLION YEN ON 110 TACS BASE STATIONS IDO HAS ONLY 12000 TACS CUSTOMERS BUT IT HAS MORE THAN 300000 SUBSCRIBERS TO ITS NTTSTYLE SYSTEM YOU CAN SEE WHY NO ONE WANTS TO USE MOTOROLA PHONES IN TOKYO OR NAGOYA SAYS ERIC GAN A TELECOMMUNICATIONS ANALYST WITH GOLDMAN SACHS JAPAN CORP IDO SAYS IT'S IN THE PROCESS OF UPGRADING ITS TACS NETWORK IT PLANS TO INSTALL ANOTHER 70 MOTOROLA BASE STATIONS BY APRIL AND AN ADDITIONAL 100 IN THE COMING YEAR OR SO MOTOROLA AND US OFFICIALS HOWEVER COMPLAIN THAT THE COMPANY'S EFFORTS ARE TWO LITTLE TOO LATE US OFFICIALS CLAIM THAT JAPAN HAS VIOLATED A PROMISE IN THE 1989 AGREEMENT TO ENSURE COMPARABLEMARKET ACCESS IN THAT REGION IF THE US FINDS JAPAN IN FORMAL VIOLATION OF THE AGREEMENT ON FEB 15 SANCTIONS COULD RESULT JAPANESE OFFICIALS HOWEVER DENY THAT CHARGE AND HAVE RESORTED TO NARROW LEGALISMS TO REFUTE IT MR SAKURAI ARGUES FOR EXAMPLE THAT JAPAN DIDN'T GUARANTEE COMPARABLEMARKET ACCESS ONLY MEASURES THAT WOULD REFLECT THE PRINCIPLES OF COMPARABLEMARKET ACCESS SIMILARLY JAPAN INSISTS THAT THE TOKYONAGOYA CELLULAR MARKET IS A BUSINESS MATTER BEST LEFT TO IDO AND MOTOROLA AND THAT GOVERNMENTS HAVE NO ROLE BEYOND URGING THE COMPANIES TO TALK TO ONE ANOTHER IT'S A LITTLE DISINGENUOUS TO SAY IT'S SIMPLY A BUSINESS PROBLEM SAYS MR ORR ONCE THEY FORCED THIS MARRIAGE BETWEEN MOTOROLA AND IDO IT AUTOMATICALLY BECAME A GOVERNMENT ISSUE 9402030019 940203 INTERNATIONAL BRIEF FOKKER NV STOCK SLIDES AMID REPORTS OF TROUBLES AT COMPANY AN AVALANCHE OF NEGATIVE NEWS STORIES CAUSED SHARES IN FOKKER NV TO SLIDE 83 YESTERDAY BUT THE DUTCH AEROSPACE COMPANY DISMISSED THE REPORTS THE SHARES CLOSED AT 21 GUILDERS 1081 ON THE AMSTERDAM EXCHANGE DOWN FROM 2290 GUILDERS TUESDAY AMID REPORTS THAT THE COMPANY FACES MASSIVE LOSSES THIS YEAR AND THAT A BOARD ROOM BATTLE MAY CLAIM ADDITIONAL VICTIMS ALREADY THIS WEEK CHAIRMAN ERIK JAN NEDERKOORN ANNOUNCED HIS DEPARTURE AFTER AN APPARENT DISAGREEMENT WITH OTHER DIRECTORS OVER ONGOING RESTRUCTURING EFFORTS FOKKER WHICH IS 51 CONTROLLED BY THE DEUTSCHE AEROSPACE AG ARM OF GERMAN INDUSTRIAL GROUP DAIMLERBENZ AG WAS SAID TO BE FACING LOSSES THIS YEAR OF ANYWHERE BETWEEN 108 MILLION AND 276 MILLION GUILDERS HOWEVER THE COMPANY ISSUED A STATEMENT SAYING THE INTERNAL REPORT USED BY THE MEDIA IS OUTDATED ALTHOUGH IT DIDN'T GIVE ANY LOSS ESTIMATES 9402030018 940203 BUSINESS BRIEF BROCK CONTROL SYSTEMS INC GROWTH OF 40 IS EXPECTED IN 3YEAR PERIOD CEO SAYS BROCK CONTROL SYSTEMS INC IN A SURGING MARKET FOR PRODUCTIVITY AIDS EXPECTS ITS BUSINESS TO GROW 40 OR SLIGHTLY MORE BY 1997 ITS CHIEF EXECUTIVE OFFICER SAID THE ATLANTA COMPANY WHICH PROVIDES SOFTWARE FOR AUTOMATING SALES MARKETING AND CUSTOMERSERVICE OPERATIONS ALSO SAID IT IS VERY COMFORTABLE WITH ANALYSTS' FOURTHQUARTER ESTIMATES WHICH CALL FOR NET INCOME OF 14 MILLION OR 31 CENTS A SHARE ON REVENUE OF 8 MILLION YEAREARLIER NET WAS 971000 OR 30 CENTS A SHARE ON REVENUE OF 58 MILLION RODGER JOHNSON PRESIDENT AND CEO SAID HE IS ALSO COMFORTABLE WITH ANALYSTS' ESTIMATES FOR THE FULL YEAR WHICH CALL FOR EARNINGS OF 62 CENTS A SHARE UP FROM A YEAREARLIER 51 CENTS A SHARE HE SAID BROCK ANTICIPATES GROWTH IN LINE WITH OR MODERATELY FASTER THAN THE INDUSTRY'S ANALYSTS EXPECT THE 550 MILLION ANNUAL MARKET TO GROW 40 BY 1997 9402030017 940203 GM'S FINANCING UNIT SAYS IT WILL REPORT 1 BILLION PROFIT FOR '93 DETROIT GENERAL MOTORS CORP EXPECTS TO REPORT THAT ITS HUGE FINANCE UNIT EARNED ABOUT 1 BILLION LAST YEAR ROBERT T O'CONNELL CHAIRMAN OF GENERAL MOTORS ACCEPTANCE CORP SAID ORDINARILY THAT WOULD BE NO BIG ACCOMPLISHMENT FOR EACH OF THE PAST NINE YEARS GMAC HAS CONTRIBUTED ABOUT THAT MUCH TO ITS PARENT'S BOTTOM LINE SUCH AN OUTCOME IS ALSO REFLECTED IN WALL STREET'S ESTIMATES THAT THE PARENT COMPANY NEXT WEEK WILL REPORT NET INCOME OF MORE THAN 2 BILLION FOR 1993 BUT 1993 WAS NO ORDINARY YEAR AS THE YEAR OPENED GMAC WAS STILL RECOVERING FROM A SCANDAL THAT HAD LED TO A HOUSECLEANING OF TOP MANAGEMENT THE PARENT'S CREDIT RATING HAD BEEN DOWNGRADED JEOPARDIZING GMAC'S ABILITY TO RAISE CHEAP FUNDS 15 BILLION OF BANK CREDIT LINES WERE DUE FOR RENEGOTIATION AND WORRIED MANAGERS WERE EMBARKING ON A PLAN TO SHRINK THE ASSET BASE IT WAS VERY SCARY MR O'CONNELL ACKNOWLEDGED GMAC RESPONDED BY GROWING MORE AGGRESSIVE IN MEETING COMPETITIVE THREATS AT THE RETAIL LEVEL REORGANIZING AND SLIMMING ITS OPERATIONS TO CUT COSTS AND SEEKING OUT CREATIVE NEW FINANCING SOURCES IT WAS ALSO LUCKY INTEREST RATES DECLINED THE MONEY MARKETS STILL LIKED GMAC COMMERCIAL PAPER DESPITE ITS LOWER RATING AND CAR SALES IMPROVED MR O'CONNELL SAID GMAC'S SHARE OF BUSINESS INVOLVING GM DEALERS WAS BACK TO 31 BY DECEMBER AFTER DROPPING AS LOW AS 24 IN MARCH 1993 THE FIGURE HAD BEEN ABOUT 33 IN 1992 AND MR O'CONNELL EXPECTS IT TO EVENTUALLY RETURN TO ITS HISTORICAL LEVEL OF 35 GMAC'S CHIEF MISSION IS TO ACT AS BANKER TO GM DEALERS FINANCING THEIR PURCHASES OF CARS AND TRUCKS AND MAKING LOANS TO THEIR RETAIL CUSTOMERS WITH ABOUT 80 BILLION OF ASSETS GMAC IS BIGGER THAN ALL BUT THREE US BANKS 9402030016 940203 WEDNESDAY'S MARKETS BONDS STOCKS AND DOLLAR POST GAINS FOR DAY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A JUMP IN BOND PRICES HELPED PUSH STOCKS HIGHER THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED 1153 POINTS TO 397554 JUST SHY OF ITS RECORD OF 397836 STANDARD & POOR'S 500STOCK INDEX ROSE 238 TO A RECORD 48200 AND THE NASDAQ COMPOSITE INDEX CLIMBED 233 TO 79957 BOND PRICES RECOVERED FROM TUESDAY'S TUMBLE AS TRADERS LARGELY IGNORED FURTHER SIGNS OF AN IMPROVING ECONOMY AND FOCUSED INSTEAD ON EXPECTATIONS THAT THE FEDERAL RESERVE BOARD WILL ACT TO HEAD OFF INFLATIONARY PRESSURES IF THEY ARISE RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SAID MANY TRADERS REGARDED A SHARP JUMP IN DECEMBER NEWHOME SALES AS OLD NEWS ESPECIALLY AS IT FAILS TO TAKE INTO ACCOUNT THE SEVERE WINTER AND LOS ANGELES EARTHQUAKE THAT ARE LIKELY TO DISRUPT JANUARY HOME SALES THE MARKET MAY BE LOOKING THROUGH THE STRONG NUMBERS TO A PRONOUNCED DROPOFF IN JANUARY MR BERNER SAID BOND TRADERS ALSO WERE ENCOURAGED THAT YESTERDAY'S ANNOUNCEMENT OF THE TREASURY'S PLANS FOR ITS QUARTERLY REFUNDING WAS IN LINE WITH EXPECTATIONS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 001 TO 11902 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3288 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1279 ISSUES ROSE AND 851 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/2 POINT OR 5 FOR EACH 1000 FACE AMOUNT TO YIELD 628 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17336 MARKS AND 10788 YEN COMPARED WITH 17320 MARKS AND 10770 YEN TUESDAY 9402030015 940203 IMMIGRATION POLICY TO BE REVAMPED IN SEVERAL AREAS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AS PART OF A REVAMPED IMMIGRATION STRATEGY PLANS TO INCREASE ENFORCEMENT AGAINST EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS ATTORNEY GENERAL JANET RENO PLANS TO ANNOUNCE SEVERAL STEPS TO CORRECT IMMIGRATIONRELATED PROBLEMS INCLUDING A REORGANIZATION OF THE IMMIGRATION AND NATURALIZATION SERVICE AT A NEWS CONFERENCE WITH INS COMMISSIONER DORIS MEISSNER TODAY INCREASED ENFORCEMENT WHICH INCLUDES HIRING AND REDEPLOYING HUNDREDS OF BORDER PATROL AGENTS OVER TWO YEARS IS ONE OF FOUR INITIATIVES DESIGNED TO IMPROVE THE INS AN AGENCY THAT HAS ACQUIRED A REPUTATION AS AN ADMINISTRATIVE BASKET CASE UNDER THE NEW IMMIGRATION STRATEGY INS AGENTS WILL STEP UP ENFORCEMENT AGAINST EMPLOYERS WHO HAVE SHOWN A PATTERN AND PRACTICE OF EMPLOYING UNDOCUMENTED WORKERS ACCORDING TO A CONGRESSIONAL AIDE WHO WAS BRIEFED ON THE PROGRAM EMPLOYERS MUST CHECK CERTAIN DOCUMENTS OF JOB APPLICANTS IN AN ATTEMPT TO ASCERTAIN THAT THEY AREN'T IN THE COUNTRY ILLEGALLY BEFORE HIRING THEM IN ADDITION TO ENFORCEMENT AND REORGANIZATION THE INITIATIVES INCLUDE REDUCING THE ENORMOUS BACKLOG OF APPLICATIONS FOR POLITICAL ASYLUM BY HIRING ADDITIONAL ASYLUM OFFICERS AND CUTTING THE TIME IT TAKES TO PROCESS NATURALIZATION APPLICATIONS BY HIRING ADDITIONAL STAFF IN A MESSAGE SENT TO INS EMPLOYEES MONDAY MS MEISSNER SAID THAT THE REORGANIZATION PLAN RESPONDS TO THE WIDELY HELD VIEW WITHIN INS AND BY OUR STAKEHOLDERS THAT THE AGENCY IS NOT WORKING WELL AS PRESENTLY STRUCTURED THE STATEMENT DIDN'T SPECIFY COST OR PERSONNEL FIGURES 9402030014 940203 MARKETING & MEDIA ADVERTISING MCCAFFREY FORMER SAATCHI UNIT CLOSES AFTER LOSING BIG ACCOUNTS BY LAURA BIRD MCCAFFREY & MCCALL THE FORMER SAATCHI & SAATCHI ADVERTISING AGENCY WHOSE BILLINGS HAD RECENTLY BEEN IN A FREE FALL YESTERDAY CALLED IT QUITS AND FOLDED THE LAST OF ITS ACCOUNTS INTO SAATCHI'S BACKER SPIELVOGEL BATES AGENCY THE MOVE MARKS THE DEATH OF A ONCEHEALTHY MIDSIZE AGENCY WITH BILLINGS OF ALMOST 300 MILLION AS RECENTLY AS 1991 AND A LIST OF BLUECHIP CLIENTS INCLUDING MERCEDESBENZ TIFFANY BACARDI IMPORTS AND ITT CORP'S HARTFORD INSURANCE BUT MCCAFFREY ENDED ITS LIFE ON MADISON AVENUE WITH BILLINGS OF ONLY ABOUT 100 MILLION BACKER SAID MCCAFFREY'S FAST DEMISE RUNS COUNTER TO THE LATEST TREND ON MADISON AVENUE OTHER SMALL AND MIDSIZE SHOPS ARE BEING HAILED AS THE FUTURE OF THE AD BUSINESS AND ARE SNARING SUCH BIG ACCOUNTS AS MASTERCARD INTERNATIONAL AND INTERNATIONAL BUSINESS MACHINES SMALL AND MIDSIZE SHOPS RECENTLY EVEN SHUT GIANT INTERNATIONAL ADVERTISING NETWORKS OUT OF ONE OF THE BIGGEST ACCOUNT PITCHES IN YEARS GRAND METROPOLITAN'S BURGER KING MANY MIDSIZE AGENCIES PRIDE THEMSELVES ON LIMITING THEIR BUSINESS TO A SMALL NUMBER OF ACCOUNTS BUT MCCAFFREY'S END UNDERSCORES THE RISK OF FOLLOWING THAT STRATEGY MCCAFFREY NEVER COULD REVERSE THE DOWNWARD MOMENTUM AFTER ITS MOST IMPORTANT CLIENT DAIMLERBENZ'S MERCEDES BENZ OF NORTH AMERICA PUT ITS 90 MILLION ACCOUNT INTO REVIEW IN 1991 THE MOVE SPARKED A STAMPEDE AS BACARDI TIFFANY AND OTHERS LEFT THE AGENCY MCCAFFREY WAS NEVER ABLE TO RECOVER ITS FOOTING PARTLY BECAUSE ITS MANAGEMENT HAD DIVIDED INTO BITTER FACTIONS ADVERTISING INDUSTRY EXECUTIVES SAID ONE GROUP SUPPORTED THENCHAIRMAN BOB CHERINS WHILE ANOTHER LINED UP BEHIND WILLIAM VIESER THE AGENCY'S PRESIDENT AND HEAD OF THE MERCEDES ACCOUNT AT THE TIME IN THE WAKE OF THE MERCEDES LOSS BOTH EXECUTIVES LOST THEIR POWER MR CHERINS STEPPED ASIDE TO OVERSEE THE AGENCY'S DIRECTMAIL OPERATIONS AND HAS SINCE LEFT THE AGENCY MICHAEL ROBERTSON THEN A NEWCOMER TO MCCAFFREY WAS NAMED ITS CHIEF EXECUTIVE SOON AFTER MR VIESER LEFT FOR SCALI MCCABE SLOVES TO MANAGE THE MERCEDES ACCOUNT THE NEWS MARKS THE FINAL CHAPTER OF AN AGENCY FOUNDED IN 1962 BY TWO VETERANS OF THE VENERABLE OGILVY & MATHER AGENCY DAVID MCCALL AND JIM MCCAFFREY IN THE 1960S THE AGENCY MADE WAVES WITH A CORNY COMMERCIAL FOR HAI KARATE COLOGNE FEATURING CROWDS OF WOMEN ATTACKING A SWEETSMELLING MAN IN A PHONE BOOTH IT ALSO WAS AMONG THE FIRST AGENCIES TO CREATE INTERACTIVE ADS ALBEIT IN A PRIMITIVE FORM FOR CANADIAN CLUB WHISKEY THE AGENCY PUBLISHED TREASURE MAPS IN PRINT ADS SENDING CONSUMERS OFF IN SEARCH OF A CASE OF LIQUOR HIDDEN SOMEWHERE IN THE SOUTH PACIFIC OR IN MIDTOWN MANHATTAN BUT THE AGENCY ALSO WAS KNOWN FOR HIGHBROW ADS ORCHESTRATING ESSO CORP'S SUCCESSFUL NAME AND IMAGE CHANGE TO EXXON ITS MERCEDES ADS WERE CONSIDERED PACESETTERS IN AUTOMOTIVE ADVERTISING ONE FEATURED A PROFESSIONAL STUNT DRIVER WHO WALKED OUT OF A TRUCK CRASH AND INTO HIS MERCEDES IT WAS RESPONSIBLE FOR THE WELLKNOWN SLOGAN ENGINEERED LIKE NO OTHER CAR IN THE WORLD MCCAFFREY BECAME PART OF THE SAATCHI EMPIRE IN 1983 WHEN THE HOLDING COMPANY BOUGHT IT FOR 34 MILLION AS PART OF SAATCHI THE AGENCY WAS OVERSHADOWED BY SAATCHI'S BIG INTERNATIONAL AGENCIES BUT STILL CONSIDERED A GEM IN THE ADVERTISING BUSINESS BILL TRAGOS CHAIRMAN OF TBWA ADVERTISING LAUNCHED A SHORTLIVED EFFORT TO BUY THE AGENCY IN 1991 WITH THE AGENCY'S FOUNDERS RETIRED NINE EXECUTIVES AGREED TO BUY MCCAFFREY BACK FROM SAATCHI PAYING 2 MILLION IN CASH AND 15 MILLION IN THE FORM OF AN INTERESTBEARING NOTE AS PART OF THE CURRENT TRANSACTION NO MONEY CHANGED HANDS SAATCHI SAID IN EFFECT FORGIVING THE MONEY MCCAFFREY STILL OWED IN EXCHANGE SAATCHI'S BACKER SPIELVOGEL SAID IT WILL ABSORB ABOUT 40 EMPLOYEES AND THE SIX CLIENTS OF MCCAFFREY'S NEW YORK OFFICE INCLUDING THE CARIBBEAN TOURISM ORGANIZATION CIBAGEIGY'S CIBA VISION CONTACT LENSES AND BURROUGHS WELLCOME'S BIG SUDAFED ACCOUNT MCCAFFREY'S INDIANAPOLIS OFFICE WITH 44 EMPLOYEES AND FIVE CLIENTS WILL CONTINUE AS A SEPARATE UNIT OF BACKER AS WILL MCCAFFREY'S DIRECTMAIL BUSINESS MR ROBERTSON 45 YEARS OLD WAS NAMED A CREATIVE DIRECTOR AT BACKER'S NEW YORK OFFICE ROBERT HENRY MCCAFFREY'S 46YEAROLD CHIEF OPERATING OFFICER WAS NAMED AN EXECUTIVE VICE PRESIDENT AT BACKER MR ROBERTSON SAID MCCAFFREY'S UNDOING ULTIMATELY STEMMED FROM THE FACT THAT THE AGENCY WASN'T BIG ENOUGH TO HELP CLIENTS WHO WANTED GLOBAL ADVERTISING FOR EXAMPLE BACARDI LEFT FOR INTERPUBLIC GROUP'S LINTAS WHILE TIFFANY MOVED ITS ACCOUNT TO INTERPUBLIC GROUP'S MCCANNERICKSON MEDIUMSIZED AGENCIES WILL DO WELL FOR CLIENTS THAT ARE DOMESTIC AND SMALL OR MEDIUMSIZED THEMSELVES SAID MR ROBERTSON A GLOBAL CLIENT'S NEEDS ARE COMPLETELY DIFFERENT THAT IS WHERE MIDSIZED AGENCIES GET STUCK THE SEARCH IS ON FOR AN AGENCY TO HANDLE THE 10 MILLIONPLUS STOLICHNAYA VODKA ACCOUNT NOW THAT DISTRIBUTION RIGHTS TO THE BRAND HAVE MOVED TO GRAND METROPOLITAN'S CARILLON IMPORTERS THE FORMER MARKETER OF ABSOLUT VODKA TWENTYNINE AGENCIES ARE IN LINE TO PITCH THE BUSINESS SAID MICHEL ROUX CARILLON'S CHARISMATIC CHIEF EXECUTIVE OFFICER DECLINING TO IDENTIFY THEM BUT INDUSTRY EXECUTIVES SAID THE LIST INCLUDES SHOPS OF EVERY SIZE AND STRIPE INCLUDING BIG AGENCIES LIKE AYER AND SAATCHI & SAATCHI'S CME KHBB AS WELL AS SMALL CREATIVE SHOPS SUCH AS BURKHARDT & CHRISTY AND GRACE & ROTHSCHILD AGENCIES ARE THIRSTING NOT SO MUCH FOR THE SIZE OF THE BUSINESS BUT FOR THE VISIBILITY OF AN ACCOUNT HEADED BY CARILLON AND MR ROUX WHOSE ABSOLUT BRAND HELPED BUILD TBWA ADVERTISING I HAVE SOMETHING IN THE BACK OF MY MIND MR ROUX SAID CRYPTICALLY AND WHOEVER WILL COME CLOSEST TO THAT WILL GET THE ACCOUNT GREY ADVERTISING SAID THAT IT HAS RESIGNED FROM MITSUBISHI MOTOR SALES OF AMERICA'S DEALERASSOCIATION BUSINESS JUST TWO MONTHS AFTER FORMING A DEDICATED SATELLITE SHOP DUBBED G2 TO SERVICE THE BIG AUTOMOTIVE ACCOUNT BILLINGS COULDN'T BE DETERMINED MITSUBISHI OFFICIALS COULDN'T BE REACHED A GREY SPOKESWOMAN SAID THE AGENCY RESIGNED TO FOCUS ITS EFFORTS ON MITSUBISHI'S NATIONAL BRAND ADVERTISING ACCOUNT MITSUBISHI IS A UNIT OF MITSUBISHI MOTORS CORP OF JAPAN GREY'S G2 UNIT BASED IN HUNTINGTON BEACH CALIF WORKED FOR ABOUT HALF OF THE MITSUBISHI DEALER ASSOCIATIONS INCLUDING THOSE IN DALLAS HOUSTON CHICAGO LOS ANGELES AND SAN FRANCISCO THE OTHER HALF HAD CHOSEN THEIR OWN LOCAL AGENCIES LAST YEAR AFTER MITSUBISHI CHANGED ITS ADVERTISING POLICIES AND ALLOWED THEM TO SELECT THEIR OWN SHOPS GREY SAID IT WOULD CONTINUE TO WORK FOR THE ASSOCIATIONS UNTIL THEY CHOOSE A NEW AGENCY 9402030013 940203 US FIRMS READY FOR LIFTING OF EMBARGO ON VIETNAM BUT SOME OBSTACLES REMAIN A WALL STREET JOURNAL NEWS ROUNDUP AS PRESIDENT CLINTON PREPARES TO LIFT THE ECONOMIC EMBARGO AGAINST VIETNAM MANY US COMPANIES ARE EAGER TO ENTER THE MARKETS THERE BUT SEVERAL MORE DIPLOMATIC AND BUREAUCRATIC STEPS ARE NEEDED BEFORE SOME US BUSINESSES CAN TAKE FULL ADVANTAGE OF THE OPENING MOBIL CORP IS POISED TO EXERCISE AN OPTION THAT WILL PERMIT IT TO BEGIN OFFSHORE OIL EXPLORATION CATERPILLAR INC IS STUDYING AN EXPECTED 7 BILLION IN DEVELOPMENT PROJECTS THAT SHOULD YIELD SALES OF AS MUCH AS 700 MILLION IN HEAVY EARTHMOVING AND OTHER EQUIPMENT AND MICROSOFT CORP SAYS VIETNAM IS THE NEXT LOGICAL STEP IN ITS PLAN TO MOVE INTO EMERGING MARKETS BUT WHEN THE INITIAL EUPHORIA FADES OBSTACLES MAY LOOM FOR SOME US COMPANIES FOR INSTANCE THE OVERSEAS PRIVATE INVESTMENT CORP THE US GOVERNMENT AGENCY THAT PROVIDES US COMPANIES WITH LOAN GUARANTEES AND POLITICALRISK INSURANCE FOR LONGTERM INVESTMENTS IN DEVELOPING COUNTRIES WON'T BE OPERATING IN VIETNAM SOON OPIC CAN'T SIGN AGREEMENTS WITH NATIONS THAT DON'T HAVE DIPLOMATIC RELATIONS WITH THE US WHILE MR CLINTON IS EXPECTED TO LIFT THE 19YEAROLD EMBARGO SOON THE US DOESN'T PLAN TO OPEN DIPLOMATIC TIES WITH HANOI AT THIS TIME AN OPIC OFFICIAL SAYS THAT HUNDREDS OF US COMPANIES USE ITS PROGRAMS THE US EXPORTIMPORT BANK WHICH MAKES LOANS AND PROVIDES INSURANCE AND GUARANTEES FOR US EXPORTS NEEDS TO GO THROUGH ITS OWN BUREAUCRATIC PROCESS BEFORE IT GETS INVOLVED WITH EXPORTS TO VIETNAM AN OFFICIAL SAYS THERE IS A TWOSTEP PROCESS TO DETERMINE HOW MUCH RISK THE BANK WOULD BE EXPOSED TO IN VIETNAM THE OFFICIAL COULDN'T ESTIMATE HOW LONG THE PROCESS MIGHT TAKE THE INITIAL LACK OF SUCH US SUPPORT COULD HAVE A TWOFOLD IMPACT ON SOME POTENTIAL TRADE WITH VIETNAM A GROWING MARKET WITH 70 MILLION CONSUMERS I WOULD EXPECT THEM US COMPANIES TO BE QUITE DEPENDENT ON OPIC FOR LOAN GUARANTEES AND ALSO FOR POLITICAL INSURANCE SAID OPIC PRESIDENT RUTH HARKIN PARTICIPATION BY AGENCIES SUCH AS OPIC ALSO SENDS A SIGNAL THAT THE FEDERAL GOVERNMENT IS WILLING TO PUT ITS FULL FAITH AND CREDIT BEHIND A DEAL SHE ADDS STILL MANY US COMPANIES ARE BULLISH ON VIETNAM A RECENT SURVEY OF 110 US COMPANIES BY THE PRIVATE USASEAN COUNCIL FOR BUSINESS AND TECHNOLOGY INC FOUND THAT THE COMPANIES EXPECT THE BUSINESS OPPORTUNITIES TO TOTAL ABOUT 27 BILLION IN THE FIRST TWO YEARS AFTER THE EMBARGO IS LIFTED AND REACH 82 BILLION BY THE FIFTH YEAR WE DO SEE VIETNAM AS HAVING POTENTIAL SOLELY BECAUSE OF THE VOLUME OF CONSUMERS WHO WOULD USE THE PRODUCTS THAT WE MANUFACTURE DAY IN AND DAY OUT SAID A SPOKESMAN FOR PROCTER & GAMBLE CO THE CINCINNATIBASED HOUSEHOLDPRODUCTS MAKER AND ONCE THE EMBARGO IS LIFTED WESTINGHOUSE ELECTRIC CORP SAID IT IS POISED TO SELL POWER PLANT EQUIPMENT REFRIGERATION UNITS FOR CONTAINERS AND PROCESSCONTROL SYSTEMS TO DISTRIBUTORS NEARLY ALL EUROPEAN AND ASIAN BUSINESS COMPETITORS IGNORE THE US TRADE SANCTIONS AND US COMPANIES ARE EAGER TO CATCH UP BOEING CO FINDS THAT ARCHRIVAL AIRBUS INDUSTRIE OF EUROPE HAS SLIPPED IN AND LEASED TO VIETNAM AIRLINES FIVE A320 NARROWBODY AIRLINERS BOEING MANAGERS WHO HAVE WANTED TO PLACE 737S THEIR SMALLEST JETLINERS IN VIETNAM FEEL THAT PART OF THE DOOR IS CLOSED BUT THEY PLAN TO MOVE AGGRESSIVELY NONETHELESS AS SOON AS THE SANCTIONS ARE LIFTED A SPOKESMAN SAID THE COMPANY STILL HAS HIGH HOPES FOR PLACING LARGER WIDEBODY JETS SUCH AS THE 767 THERE THEY SAID THAT DEMAND IN VIETNAM SHOULD RANGE FROM 60 TO 80 JETS IN THE NEXT DECADE OR SO NUMBERS THAT LOOK PRETTY ATTRACTIVE GIVEN THE DEPRESSED STATE OF THE AIRLINER MARKET CHEVRON CORP ALSO FINDS THAT EUROPEAN COMPETITORS SUCH AS ELF AQUITAINE OF FRANCE AND ROYAL DUTCH/SHELL GROUP OF THE NETHERLANDS HAVE SOAKED UP MUCH OF THE BUSINESS IN VIETNAM WE'RE ALWAYS INTERESTED IN NEW OPPORTUNITIES A SPOKESMAN SAID HOWEVER OUR COMPETITIORS FROM OUTSIDE THE US HAVE BEEN IN VIETMAN FOR SOME TIME PURSUING THE PROSPECTS SO WE'D HAVE TO EVALUATE OUR INTEREST VERY CAREFULLY THE US HAS TAKEN A SERIES OF SMALL STEPS TOWARDS WHAT IS EXPECTED TO BE MR CLINTON'S LIFTING OF THE TRADE EMBARGO IN DECEMBER 1992 FORMER PRESIDENT BUSH PERMITTED US COMPANIES TO OPEN OFFICIES AND HIRE STAFF BUT NOT SIGN CONTRACTS TO DO BUSINESS AND IN SEPTEMBER MR CLINTON AUTHORIZED US COMPANIES TO BID ON PROJECTS FINANCED BY INTERNATIONAL FINANCIAL INSTITUTIONS DIGITAL EQUIPMENT CORP HAS BEEN AMONG THE US COMPANIES TAKING ADVANTAGE OF EACH LITTLE OPENING ALONG THE WAY IT SET UP AN OFFICE IN HANOI IN NOVEMBER AND HAS BEEN SIGNING UP PROSPECTIVE CUSTOMERS WITH CONTRACTS THAT BECOME EFFECTIVE AS SOON AS THE EMBARGO LIFTS THE COMPUTER MAKER ALSO NAMED A VIETNAM MARKET DEVELOPMENT MANAGER CURRENTLY BASED IN TOKYO WHO SPENT 20 WEEKS IN THE COUNTRY LAST YEAR WE HAVE BEEN BUILDING BUSINESS RELATIONSHIPS THAT WILL SPRING INTO LIFE AS SOON AS THE EMBARGO IS LIFTED SAID THOMAS EHRGOOD INTERNATIONAL TRADE COUNSEL STILL THE EXPLOSIVE INCREASE OF VIETNAM'S POPULATION AND THE NATION'S RELATIVE LACK OF RESOURCES MAKES SOME EXPERTS BEARISH ABOUT ITS LONGTERM GROWTH PROSPECTS THEY DISMISS ASSERTIONS THAT IT WILL RIVAL NEIGHBORING THAILAND'S METEORIC GROWTH VIETNAM IS STARTING FROM AN INCREDIBLY LOW BASE SAYS TERRY RAMBO DIRECTOR OF THE INDOCHINA INITIATIVE AT THE EASTWEST CENTER A THINK TANK IN HONOLULU EVEN IF IT GROWS 10 A YEAR WHICH IS HIGHLY UNLIKELY IT WON'T EVEN BE AT INDONESIA'S LEVEL FOR 10 YEARS 9402030012 940203 REVIEW & OUTLOOK EDITORIAL THE CHAMBER ALMOST CAVES THE US CHAMBER OF COMMERCE WAS A STALWART OPPONENT OF BIG GOVERNMENT IN THE 1980S BUT SINCE BILL CLINTON'S ELECTION IT HAS BECOME WELL MORE FLEXIBLE CHAMBER OFFICIALS CROW THAT THIS APPROACH GIVES THEM ACCESS TO CLINTON ADVISERS BUT THE RESULT HAS MOSTLY BEEN A GREATER WILLINGNESS ON THEIR PART TO SIDE WITH THE WHITE HOUSE YESTERDAY AS THE BUSINESS ROUNDTABLE VOTED 60 TO 20 TO REJECT THE CLINTON HEALTH PLAN WE RECEIVED A COPY OF THE HEALTH CARE TESTIMONY THE CHAMBER HAD SUBMITTED TO HOUSE WAYS AND MEANS FOR DELIVERY TODAY FOR THOSE WHO REMEMBER THE OLD CHAMBER IT WAS AN EYEOPENER ROBERT PATRICELLI WHO HEADS A MANAGEDCARE HEALTH COMPANY AND CHAIRS THE CHAMBER'S HEALTH CARE COMMITTEE NOTED THAT THE CHAMBER WAS IN FULL AGREEMENT WITH THE CLINTON GOAL OF UNIVERSAL COVERAGE THE CHAMBER'S TESTIMONY WENT ON TO ACCEPT THE PROPOSITION THAT EMPLOYERS SHOULD PROVIDE AND HELP PAY FOR INSURANCE ON A PHASEDIN BASIS THAT SOUNDED LIKE AN ENDORSEMENT OF AN EMPLOYER MANDATE FOR HEALTH CARE SO WE CALLED THE CHAMBER TO CLARIFY ITS POSITION JUST BEFORE PRESS TIME THE CHAMBER FAXED US A NEW STATEMENT FROM MR PATRICELLI IN IT HE SAID THE TESTIMONY WE'D SEEN WAS INADVERTENTLY SENT TO THE COMMITTEE BY CHAMBER STAFF AND DOES NOT ACCURATELY REFLECT THE POSITION OF THE CHAMBER ON HEALTH CARE REFORM WE CANNOT SUPPORT ANY OF THE MANDATE PROPOSALS MR PETROCELLI THEN SAYS THE CLINTON PLAN WOULD IMPOSE SUCH A BURDEN OF REGULATION AND BUREAUCRACY THAT WE BELIEVE IT CANNOT EVEN BE USED AS A STARTING POINT FOR COMMITTEE MARKUP SOUNDS AS IF AFTER SOME CONFUSION THE ROUNDTABLE AND THE CHAMBER HAVE THE SAME POSITION 9402030011 940203 LEISURE & ARTS UNHEARD MELODIES LINGER ON BLIND PANIC BY JULIE SALAMON IT WAS IMPOSSIBLE NOT TO LEARN THAT I'LL DO ANYTHING BEGAN AS A MUSICAL BUT HAD ITS SONGS AXED AND THEN GOT MAJOR RECONSTRUCTIVE SURGERY THIS STRONGLY AFFECTED THE WAY I SAW IT THROUGHOUT THE PICTURE I KEPT WONDERING WHETHER SONGS WOULD HAVE EXPLAINED THE MOVIE'S MANY INCONSISTENCIES OR AT LEAST GIVEN SOME LOGICAL DESTINATION FOR PAUSES THAT NOW LEAD NOWHERE I'LL DO ANYTHING IS A MESS BUT ENTERTAINING AND ONLY PARTLY BECAUSE THE DIRECTOR AND WRITER JAMES BROOKS HAS WRITTEN SOME FUNNY JOKES ABOUT THE MOVIE BUSINESS THE MOVIE'S FASCINATION ALSO LIES IN ITS WEAKNESSES IN ITS UNCERTAIN TONE ITS WAVERING BETWEEN NICENESS AND BITTERNESS ITS BIG AMBITIONS AND SCATTERED ACCOMPLISHMENTS MAKE IT PERPLEXING TO WATCH BUT INTERESTING TO THINK ABOUT MR BROOKS HAS SPENT MOST OF HIS ADULT LIFE IN TELEVISION AND MOVIES SPECIALIZING IN QUIRKY ENDEARING CHARACTERS HIS HUMOR CAN BE EDGY BUT HIS CHARACTERS ARE ALMOST ALWAYS LIKABLE THOUGH HE'S HAD HIS FAILURES HE DID WRITE THE SCRIPT FOR STARTING OVER SUCCESS HAS COME MORE READILY TO HIM HIS TELEVISION SHOWS INCLUDE THE MARY TYLER MOORE SHOW TAXI AND THE SIMPSONS HE'S MADE TWO MOVIES TERMS OF ENDEARMENT AND BROADCAST NEWS BOTH BIG COMMERCIAL HITS TERMS OF ENDEARMENT WON A FEW OSCARS INCLUDING BEST PICTURE THERE MAY BE CURRENTS OF CYNICISM IN THE WORK BUT THEY ARE ALWAYS SMOOTHED OVER BY A GOODNATURED BELIEF IN ALMOST EVERY CHARACTER EVEN TED BAXTER THE DUNDERHEAD NEWSMAN ON THE MARY TYLER MOORE SHOW WAS PERIODICALLY ALLOWED TO REVEAL THE GOOD GUY HE REALLY WAS BROADCAST NEWS HAD PERCEPTIVE THINGS TO SAY ABOUT THE CHANGE OF NEWS INTO ENTERTAINMENT BUT THE MOVIE OFFERED US NO VILLAINS ITS FUN CAME FROM ITS SMART WITTY CHARACTERS AND THE CHARGE THEY GOT OUT OF WORK AND FROM EACH OTHER WITH THIS RECORD OF SUCCESS BEHIND HIM MR BROOKS COULD EASILY PERSUADE HIMSELF AND FILMLAND'S MONEY MEN THAT HE COULD DO ANYTHING EVEN TRIUMPH WHERE OTHER TALENTED PEOPLE HAD FAILED THE MUSICAL FORM HAD PREVIOUSLY EXERTED A FATAL TEMPTATION OVER FRANCIS FORD COPPOLA TWICE WITH ONE FROM THE HEART AND THE COTTON CLUB STEVEN BOCHCO SUCCUMBED TO THE SAME DEATH WISH ON TV COP ROCK NONE OF THESE MAJOR FAILURES NECESSARILY MEANT MR BROOKS WOULDN'T FIND A WAY TO MAKE THE PUBLIC SING SO HE MADE I'LL DO ANYTHING WITH MUSICAL NUMBERS BY CAROLE KING SINEAD O'CONNOR AND PRINCE AND DANCES BY TWYLA THARP IT WAS UNMADE AT A PREVIEW SCREENING AT WHICH REPORTEDLY 100 PEOPLE WALKED OUT LATER THEY EXPLAINED WHY THEY HATED THE SONGS SO I'LL DO ANYTHING WAS REMADE THIS TIME WITHOUT MUSIC IN THIS FORM THE STORY'S DARKNESS ITS NASTINESS IS SO PRONOUNCED THAT THE HAPPY ENDING MAKES NO SENSE WHAT BEGINS AS A SATIRE OF HOLLYWOOD ENDS AS A CELEBRATION THE CHARACTERIZATIONS USUALLY THE MAINSTAY OF A BROOKS CREATION ARE SURPRISINGLY GLIB THOUGH ALBERT BROOKS IS HILARIOUS AS A MINOR MOVIE MOGUL THE STORY IS ABOUT A TALENTED BUT MYSTERIOUSLY UNEMPLOYABLE ACTOR NICK NOLTE WHO FINDS HIMSELF PUT IN CHARGE OF THE SIXYEAROLD DAUGHTER HE HASN'T SEEN FOR TWO YEARS THIS OCCURS JUST AS HIS FOREVER LAGGING CAREER MIGHT BE ON THE UPSWING BECAUSE A WOMAN EXECUTIVE AT A PRODUCTION COMPANY LIKES HIM AND HIS ACTING TOO HE HASN'T YET SNAGGED A PART BUT HE HAS FOUND WORK AS CHAUFFEUR TO THE RUDE NEUROTIC ALBERT BROOKS WHO RUNS THE COMPANY HE FINDS HIMSELF SURROUNDED BY MANIPULATIVE PEOPLE WHO THINK IT'S OKAY TO BE RUTHLESS SO LONG AS YOU SAY THANKS THESE INCLUDE HIS LITTLE GIRL PLAYED WITH SCARY COLDNESS BY WHITTNI WRIGHT AND THE WOMAN MOVIE EXECUTIVE PLAYED BY JOELY RICHARDSON JULIE KAVNER IS ON HAND TO PROVIDE THE HUMANITY SHE'S IN LOVE WITH THE MOVIE MOGUL SO SHE FEELS OBLIGED TO POINT OUT HIS SHORTCOMINGS AS A HUMAN TO HIM THERE ARE MANY CLEVER LINES AND SITUATIONS MR BROOKS IS VERY OBSERVANT AND HE HAS BEEN OBSERVING THE HOLLYWOOD SCENE FROM THE INSIDE FOR A LONG TIME HE KNOWS ABOUT THE GLIBLY CRUEL YOUNG EXECUTIVES WHO HAVE LITTLE CREATIVITY AND LOTS OF POWER AND THE SHORT BALD MEN WHO SHOW UP AT HOT RESTAURANTS WITH THEIR TALL BLOND WIVES BUT THE STORY'S THEMES AND THE MAIN RELATIONSHIPS NEVER SEEM TO CONNECT MAYBE THEY'VE BEEN SHORTCIRCUITED BY THE DELETION OF THE SONGS MAYBE NOT WE'LL FIND OUT WHEN AND IF THE ORIGINAL VERSION APPEARS ON LASER DISK BLINK IS A THRILLER ABOUT A PRETTY MUSICIAN NAMED EMMA WHO REGAINS HER SIGHT AFTER 20 YEARS OF BLINDNESS JUST IN TIME TO WITNESS A MURDERER LEAVING HIS VICTIM SHE BECOMES HIS PREY WHICH LEADS HER NOT ONLY INTO THE USUAL SPASMS OF THRILLERVICTIM BUT ALSO INTO THE ARMS OF THE HANDSOME DETECTIVE PUT ON THE CASE THIS MAY SOUND UNREMARKABLE BUT THE DIRECTOR MICHAEL APTED HAS MADE THE PICTURE BOTH SCARY AND EMOTIONALLY CONVINCING ESPECIALLY IN THE FIRST HALF BEFORE THE PLOT WEARS ITSELF OUT HE HAS BEEN HELPED CONSIDERABLY BY HIS LEADING LADY MADELEINE STOWE ONE OF THE MOST EXCITING YOUNG ACTRESSES TO EMERGE IN THE LAST COUPLE OF YEARS SHE WAS ONE OF THE LEAD PLAYERS IN LAST OF THE MOHICANS AND A MAJOR FORCE IN ROBERT ALTMAN'S SHORT CUTS SHE GIVES THE ILLUSION OF HAVING ALL THE RIGHT THINGS GUTS SEXINESS AND THE INNER TENSION OF A THINKING PERSON SHE IS ALSO NICELY PAIRED WITH AIDAN QUINN WHO MAY OR MAY NOT BE A CONVINCING STREET COP BUT HE'S A GOOD MATCH FOR MS STOWE IN THE GUTS SEXINESS AND THINKING PERSON DEPARTMENT IT HELPS THAT THEY'VE BEEN GIVEN SMART THINGS TO SAY BY SCREENWRITER DANA STEVENS VIDEO TIP FRANCIS FORD COPPOLA'S MUSICALS DIDN'T GET VERY GOOD REVIEWS AND FAILED AT THE BOX OFFICE BUT THEY ARE SOMETHING TO SEE EVEN SPECTACULAR THEY MAY NOT HAVE THE HEART AND SOUL AND COHERENCE OF THE GREAT MOVIE MUSICALS BUT THEY SURELY ARE BEAUTIFUL TO BEHOLD 9402030010 940203 POLITICS & POLICY BROWN CLEARED OF ALLEGATIONS ON TRADE DEAL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT CLEARED COMMERCE SECRETARY RONALD BROWN OF ALLEGATIONS THAT HE SOUGHT A BRIBE TO HELP LIBERALIZE USVIETNAM TRADE RELATIONS WE HAVE COMPLETED A THOROUGH INVESTIGATION AND HAVE CONCLUDED THAT THE EVIDENCE DOES NOT SUBSTANTIATE THE ALLEGATION THAT MR BROWN ENTERED INTO ANY SUCH AGREEMENT SAID JOSEPH GANGLOFF ACTING CHIEF OF THE DEPARTMENT'S PUBLIC INTEGRITY SECTION IN A LETTER TO MR BROWN'S LAWYER NO FURTHER INVESTIGATION IS WARRANTED ACCORDINGLY WE ARE CLOSING THE INVESTIGATION FEDERAL INVESTIGATORS CONCLUDED WEEKS AGO THERE WAS NO CASE AGAINST MR BROWN BUT TOP JUSTICE DEPARTMENT OFFICIALS WANTED TO BE CERTAIN EVERY POSSIBLE LEAD HAD BEEN CHECKED BEFORE ISSUING THE CLEARANCE LETTER SO THAT NO CREDIBLE CHARGE OF A COVERUP COULD BE RAISED REID WEINGARTEN MR BROWN'S LAWYER SAID THE FEDERAL BUREAU OF INVESTIGATION WENT BY THE BOOK THEY TURNED OVER EVERY ROCK AS WE HAD EXPECTED AND FOUND ABSOLUTELY NOTHING TO CORROBORATE THE ALLEGATIONS MR BROWN'S OFFICE RELEASED A STATEMENT SAYING THE COMMERCE SECRETARY HAS MAINTAINED FROM THE OUTSET THAT THE ALLEGATIONS WERE BASELESS MR BROWN IT CONTINUED IS PLEASED THAT THE INQUIRY HAS FULLY AND FAIRLY EXONERATED HIM OF ANY WRONGDOING ABOUT A YEAR AGO A FORT LAUDERDALE FLA BUSINESSMAN LY THANH BINH ALSO KNOWN AS BINH LY TOLD FEDERAL AGENTS AND REPORTERS THAT MR BROWN REQUESTED 700000 PLUS OIL AND GAS ROYALTIES TO ADVANCE VIETNAMESE TRADE INTERESTS MR BINH WHO ADMITTED THAT HE HAD NEVER SPOKEN TO MR BROWN SAID HIS INFORMATION CAME FROM NGUYEN VAN HAO A FORMER SOUTH VIETNAMESE OFFICIAL WHO ALLEGEDLY SERVED AS THE MIDDLEMAN BETWEEN THE SECRETARY AND VIETNAMESE OFFICIALS MR HAO WHO WAS A BUSINESS PARTNER WITH MR BINH DENIED MR BINH'S ALLEGATIONS BOTH MR HAO AND MR BINH APPEARED BEFORE A FEDERAL GRAND JURY IN MIAMI WHICH INVESTIGATED THE CHARGES MR HAO'S LAWYER RELEASED A STATEMENT SAYING MR HAO BELIEVES CLOSING THE CASE WAS JUST FAIR AND A COMPLETE VINDICATION OF HIS ACTIONS CHARACTER AND TRUTHFULNESS MR BINH SAID WRONGDOING IS TAKING PLACE AND IS BEING SUPPRESSED BY THE ADMINISTRATION THOUGH THERE NEVER WAS ANY SUPPORT FOR MR BINH'S ALLEGATIONS MR BROWN'S CREDIBILITY WAS QUESTIONED BY SOME CONSERVATIVE REPUBLICANS AFTER A COMMERCE DEPARTMENT SPOKESMAN ISSUED A STATEMENT LAST AUGUST SAYING MR BROWN NEVER HAD ANY BUSINESS FINANCIAL OR PROFESSIONAL RELATIONSHIP WITH ANY VIETNAMESE INDIVIDUAL ORGANIZATION OR GROUP OR ANY PERSON CLAIMING TO REPRESENT VIETNAMESE GOVERNMENT OR BUSINESS INTERESTS THE NEXT MONTH MR WEINGARTEN SAID THE SECRETARY MET MR HAO THREE TIMES BETWEEN NOVEMBER 1992 AND JANUARY 1993 INCLUDING ONCE IN MR BROWN'S COMMERCE DEPARTMENT OFFICE PAYMENTS TO MR BROWN WERE NEVER DISCUSSED MR WEINGARTEN SAID MR BROWN'S SUPPORTERS HAVE SPECULATED THAT THE ALLEGATIONS WERE RAISED TO DERAIL ANY CLINTON ADMINISTRATION EFFORT TO NORMALIZE RELATIONS WITH VIETNAM REP DANA ROHRABACHER R CALIF SAID HE HOPES TO QUESTION MR BROWN ABOUT THE ALLEGATIONS SOMETIME WHEN THE COMMERCE SECRETARY TESTIFIES BEFORE CONGRESS MR BROWN SAID DURING A HEARING LAST YEAR THAT HE WOULDN'T ANSWER QUESTIONS ABOUT THE ALLEGATIONS DURING THE INVESTIGATION SEPARATELY JUSTICE DEPARTMENT OFFICIALS HAVE DECIDED THEY WON'T PROSECUTE TWO FORMER STATE DEPARTMENT EMPLOYEES WHO SEARCHED THE PERSONNEL FILES OF 160 BUSH ADMINISTRATION APPOINTEES THE TWO FORMER EMPLOYEES WERE CLINTON CAMPAIGN WORKERS WHO WERE FIRED BY SECRETARY OF STATE WARREN CHRISTOPHER FOR GOING THROUGH THE FILES OF GOP APPOINTEES TEMPORARILY RETAINED BY THE CLINTON ADMINISTRATION 9402030009 940203 CORRECTION IN A LETTER TO THE EDITOR YESTERDAY ON BREAST CANCER THERE WAS A SIGNIFICANT TYPOGRAPHICAL ERROR IN ONE SENTENCE IT SHOULD HAVE READ IN FACT FIVE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM CANCER FOR WOMEN AGES 4049 BY 22 AS IN THE EDINBURGH TRIAL TO AS MUCH AS 49 IN THE MALMO TRIAL 9402030008 940203 BUSINESS BRIEF CABOT OIL & GAS CORP CAPITAL EXPLORATION BUDGET TO INCREASE 60 THIS YEAR CABOT OIL & GAS CORP HOUSTON SAID IT WILL SPEND 81 MILLION FOR ITS 1994 CAPITAL AND EXPLORATION BUDGET 60 MORE THAN THE 506 MILLION BUDGETED IN 1993 ACTUAL CAPITAL EXPENDITURES FOR 1993 TOTALED 1363 MILLION BECAUSE OF ACQUISITIONS THAT THE COMPANY MADE DURING THE YEAR A COMPANY SPOKESMAN SAID ONLY THE ACQUISITIONS FOR WHICH THE COMPANY HAS SIGNED AGREEMENTS IN HAND ARE INCLUDED IN THE INITIAL BUDGET AT THIS TIME 1994 ACQUISITION FUNDS ARE SET AT 242 MILLION COMPARED WITH 1993'S ACTUAL EXPENDITURES OF 866 MILLION THE BUDGET ALSO INCLUDES 397 MILLION FOR DRILLING AND WORKOVERS COMPARED WITH 363 MILLION LAST YEAR CABOT SAID IT PLANS TO DRILL 150 WELLS IN THE APPALACHIAN REGION AND 21 WELLS IN THE ANADARKO REGION OF SOUTH CENTRAL US 9402030007 940203 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMR CORP A SHELF OFFERING OF UP TO 500 MILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES HEALTHSOUTH REHABILITATION CORP AN OFFERING OF UP TO 250 MILLION OF SENIOR SUBORDINATED NOTES AND UP TO 100 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA SMITH BARNEY SHEARSON INC MILLICOM INTERNATIONAL CELLULAR SA AN OFFERING OF 4725000 COMMON SHARES VIA SG WARBURG & CO AND MORGAN STANLEY & CO 9402030006 940202 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 9402030005 940203 BUSINESS BRIEF MCGRAWHILL INC PUBLISHING CONCERN'S NET FOR FOURTH PERIOD WAS FLAT MCGRAWHILL INC SAID FOURTHQUARTER PROFIT WAS FLAT AS WEAK RESULTS IN ITS EXPANDING TEXTBOOK BUSINESS OFFSET GAINS IN FINANCIAL SERVICES THE PUBLISHING AND INFORMATION COMPANY POSTED FOURTHQUARTER NET INCOME OF 449 MILLION OR 91 CENTS A SHARE UP SLIGHTLY FROM 447 MILLION OR 91 CENTS A SHARE A YEAR AGO REVENUE ROSE 18 TO 6826 MILLION FROM 5787 MILLION THE 1992 RESULTS INCLUDED A 128 MILLION LOSS FROM MCGRAWHILL'S 50 SHARE OF A TEXTBOOK AND EDUCATIONALMATERIALS BUSINESS IN 1993 MCGRAWHILL BOUGHT THE OTHER 50 AND THE 1993 RESULTS REFLECT THE ENTIRE OPERATION'S PERFORMANCE FOR THE YEAR MCGRAWHILL NET FELL 60 TO 114 MILLION OR 23 CENTS A SHARE FROM 286 MILLION OR 58 CENTS A SHARE RESULTS FOR 1993 INCLUDE A CHARGE OF 1608 MILLION RELATED TO THE TEXTBOOKBUSINESS STAKE THE 1992 RESULTS INCLUDE A CHARGE OF 1246 MILLION FROM AN ACCOUNTING CHANGE IN LATE NEW YORK STOCK EXCHANGE TRADING MCGRAWHILL'S STOCK WAS QUOTED AT 69125 DOWN 25 CENTS 9402030004 940203 WHAT'S NEWS WORLDWIDE CLINTON IS PROPOSING TO SLASH SPENDING FOR MANY FEDERAL PROGRAMS THE PRESIDENT'S BUDGET TO BE RELEASED MONDAY CALLS FOR DEEP CUTS IN SCORES OF PROGRAMS AND THE ELIMINATION OF MORE THAN 100 OTHERS CLINTON WILL SEEK REDUCTIONS IN NEXT YEAR'S SPENDING FOR PUBLIC HOUSING ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS RURAL ELECTRIFICATION LOAN SUBSIDIES SUBSIDIES FOR TRANSIT SYSTEMS AND AID TO HELP POOR PEOPLE PAY THEIR HEATING BILLS OFFICIALS SAID CLINTON ADMINISTRATION OFFICIALS ARE CALLING ATTENTION TO SOME OF THE CUTS TO DEMONSTRATE THAT THE PRESIDENT MADE SOME DIFFICULT CHOICES THE US AND THE UN MAY BE FORCED TO DECIDE SOON WHETHER TO IMPOSE SANCTIONS ON NORTH KOREA DEFENSE SECRETARYDESIGNATE PERRY SAID CONCEDING PYONGYANG MAY HAVE A NUCLEAR WEAPON HE SAID HIS BIGGEST CONCERN IS STOPPING NORTH KOREA FROM ANY EFFORT TO DEVELOP WHAT MAY BE DOZENS OF BOMBS THE WORLD MUST DEFEND BOSNIA AGAINST THE MERCILESS SAVAGERY OF ETHNIC AGGRESSION PRIME MINISTERS BHUTTO OF PAKISTAN AND CILLER OF TURKEY SAID DURING A VISIT TO SARAJEVO THE TWO LEADERS ASKED FOR A FAIR PEACE TO BE REACHED AS SOON AS POSSIBLE AND APPEALED TO THE UN CHIEF TO CALL FOR AIR STRIKES AGAINST BOSNIAN SERBS RUSSIAN EXTREMIST ZHIRINOVSKY CLAIMED THAT HE HAD GIVEN THE GOAHEAD FOR THE USE OF A NEW SECRET WEAPON AGAINST MUSLIM MILITARY UNITS IN THE FORMER YUGOSLAVIA THE ULTRANATIONALIST POLITICIAN WHO IS TOURING THE REGION HAS YET TO PRODUCE ANY EVIDENCE OF THE WEAPON'S EXISTENCE THE JUSTICE DEPARTMENT CLEARED COMMERCE SECRETARY BROWN OF ALLEGATIONS THAT HE SOUGHT A BRIBE TO HELP LIBERALIZE USVIETNAM TRADE RELATIONS THOUGH INVESTIGATORS CONCLUDED WEEKS AGO THERE WAS NO CASE AGAINST BROWN OFFICIALS WANTED TO CHECK EVERY POSSIBLE LEAD TO AVOID CHARGES OF A COVERUP VENEZUELA'S NEW PRESIDENT DECLARED THAT 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 CALDERA WHO ALSO SERVED AS PRESIDENT FROM 1969 TO 1974 WAS SWORN IN YESTERDAY THE RECENT MEXICAN UPRISING ISN'T LIKELY TO SPREAD THE STATE DEPARTMENT'S TOP LATIN AMERICAN OFFICIAL ALEXANDER WATSON SAID HIS ASSESSMENT CAME AT A CONGRESSIONAL HEARING ON THE CHIAPAS UPRISING DURING WHICH REP TORRICELLI SAID THE ADMINISTRATION HAS A RESPONSIBILITY TO INFORM US FIRMS IF FURTHER INSTABILITY IS EXPECTED ISRAEL'S RABIN SAID IT WOULD TAKE A MIRACLE TO RESOLVE REMAINING DIFFERENCES IN NEXT WEEK'S ISRAELIPLO NEGOTIATIONS THE PLO SAID MORE DELAYS IN IMPLEMENTING PALESTINIAN AUTONOMY WOULD HURT THE PEACE PROCESS THREE JEWISH SETTLERS WERE WOUNDED IN A DRIVEBY SHOOTING IN THE WEST BANK ATTORNEY GENERAL RENO PLANS TO ANNOUNCE STEPS TODAY TO CORRECT IMMIGRATIONRELATED PROBLEMS INCLUDING INCREASED ENFORCEMENT AGAINST EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS FEDERAL AGENTS INTEND TO TARGET EMPLOYERS WHO HAVE MADE IT A PRACTICE TO HIRE SUCH WORKERS CHILDREN'S BEHAVIOR ISN'T AFFECTED BY SUGAR OR ARTIFICIAL SWEETENERS ACCORDING TO A NEW MEDICAL STUDY THE STUDY FUNDED IN PART BY THE GOVERNMENT FOUND THAT EVEN WHEN INTAKE LEVELS WERE EXCESSIVE NEITHER SUGAR NOR ASPARTAME INFLUENCES CHILDREN'S BEHAVIOR OR THINKING SINN FEIN LEADER GERRY ADAMS ENDED A US VISIT PLEDGING THAT HE WOULD MAKE CONCRETE DECISIONS SOON ON HIS PARTY'S ROLE IN THE NORTHERN IRELAND PEACE PROCESS ADAMS WHOSE PARTY IS THE POLITICAL WING OF THE IRISH REPUBLICAN ARMY DIDN'T OFFER ANY NEW POLICY INITIATIVES DURING HIS VISIT THE BRITISH GOVERNMENT REPORTEDLY SAID IT WOULD PRESENT NEW PROPOSALS FOR A POLITICAL SETTLEMENT IN NORTHERN IRELAND THE PROPOSALS ARE SAID TO INVOLVE IDEAS FOR REDUCING BRITAIN'S ROLE IN THE PROVINCE AND MECHANISMS FOR ENHANCING CROSSBORDER COOPERATION WITH THE REPUBLIC OF IRELAND A RADICAL ISLAMIC GROUP TOLD FOREIGNERS THEY SHOULD LEAVE EGYPT WARNING OF EXTREMELY FEROCIOUS ACTIONS THE RADICALS REACTED ANGRILY TO A POLICE RAID TUESDAY IN CAIRO IN WHICH SEVEN SUSPECTED MUSLIM EXTREMISTS WERE KILLED 9402030003 940203 BUSINESS BRIEF SCANA CORP FOURTHPERIOD NET TO MEET OR EXCEED ANALYST FORECASTS SCANA CORP EXPECTS TO REPORT THAT PERSHARE EARNINGS FOR THE FOURTH QUARTER AND YEAR WILL CERTAINLY BE IN LINE WITH AND PERHAPS BE A BIT MORE THAN ANALYSTS' ESTIMATES SAID LAWRENCE M GRESSETTE JR CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SCANA A COLUMBIA SC HOLDING COMPANY WITH ELECTRIC AND NATURALGAS UTILITY OPERATIONS IS ALSO LIKELY TO INCREASE ITS QUARTERLY DIVIDEND OF 685 CENTS A SHARE MR GRESSETTE SAID IN AN INTERVIEW ANALYSTS HAVE BEEN ESTIMATING PERSHARE EARNINGS OF ABOUT 67 CENTS FOR SCANA'S FOURTH QUARTER AND ABOUT 368 FOR ALL OF 1993 IN THE 1992 FOURTH QUARTER THE COMPANY EARNED 271 MILLION OR 64 CENTS A SHARE ON REVENUE OF 280 MILLION FOR ALL OF 1992 SCANA REPORTED EARNINGS OF 1176 MILLION OR 284 A SHARE ON REVENUE OF 114 BILLION 9402030002 940203 FOREIGN EXCHANGE DOLLAR DRIFTS UP SLIGHTLY IN SLOW SESSION AMID UNCERTAINTY ABOUT GERMAN RATES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DRIFTED SLIGHTLY HIGHER YESTERDAY IN SLUGGISH TRADING AS UNCERTAINTY OVER GERMAN INTEREST RATES AND A NEW JAPANESE FISCAL STIMULUS PACKAGE OVERSHADOWED BULLISH US ECONOMIC DATA TRADERS SAID THE MARKET IS DIVIDED ON WHETHER THE BUNDESBANK GERMANY'S CENTRAL BANK WILL CUT INTEREST RATES AT ITS POLICYMAKING COUNCIL MEETING TODAY THEY ALSO NOTED A MARKETWIDE RELUCTANCE TO TAKE NEW POSITIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17336 MARKS UP A BIT FROM 17320 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10788 YEN UP FROM 10770 YEN STERLING WAS TRADING AT 14955 DOWN FROM 15010 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10821 YEN AND AT 17355 MARKS THERE IS A LOT OF UNCERTAINTY IN THE MARKET SAID JACK GRIFFIN ASSISTANT VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK IN NEW YORK HE SAID TRADERS WHO HAD BEEN BURNED BY PAST EXPECTATIONS OF BUNDESBANK DECISIONS ARE UNWILLING TO PLACE BETS ON WHICH WAY THE MARKET WILL GO IN ADDITION THE MARKET WAS UNSURE ABOUT THE IMPLICATIONS OF JAPAN'S LONGAWAITED ECONOMICSTIMULUS PROGRAM BASED ON THE INITIAL NEWS REPORTS FROM TOKYO JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED A PLAN TO CUT INCOME AND RESIDENCE TAXES BY SIX TRILLION YEN 555 BILLION IMMEDIATELY AND TO RAISE THE CURRENT 3 CONSUMER SALES TAX TO A 7 PEOPLE'S WELFARE IN APRIL 1997 HOWEVER EVEN THE DELAYED CONSUMER TAX INCREASE APPEARS IMPERILED WITH THE SOCIALISTS THREATENING TO QUIT MR HOSOKAWA'S FRAGILE RULING COALITION IF THE MEASURE IS PASSED BY PARLIAMENT IN ADDITION THE US RESPONSE TO THE STIMULUS PROGRAM HAS BEEN WEAK AT BEST US TREASURY SECRETARY LLOYD BENTSEN ISSUED A TERSE THREESENTENCE RESPONSE SAYING HE WAS PLEASED THAT JAPAN HAD TAKEN A STEP TOWARD PROVIDING ECONOMIC STIMULUS BUT CAUTIONED THAT MORE DETAILS WERE NEEDED ANALYSTS SAID THE PACKAGE ONCE FULLY UNVEILED IS LIKELY TO BE GIVEN A SOUR GREETING BY THE CLINTON ADMINISTRATION AND COULD RESURRECT US PRESSURE FOR A STRONG YEN AS AN ANTIDOTE FOR JAPAN'S HUGE TRADE SURPLUS THE TAX CUT IS NOT GOING TO BE LARGE ENOUGH TO SATISFY THE US SAID SUNG WON SOHN CHIEF ECONOMIST FOR NORWEST BANK CORP IN MINNEAPOLIS WE WOULD LIKE THE TAX CUT TO HAVE BEEN IN THE SEVENTO 10TRILLIONYEN RANGE BUT IT'S LESS THAN THAT GIVEN THE QUARRELSOME COALITION THAT HOSOKAWA IS HEADING THERE ARE QUESTIONS WHETHER THIS THING WILL MAKE IT THROUGH PARLIAMENT HE ADDED THE MARKET HAS LITTLE CONFIDENCE IN HOSOKAWA'S ABILITY TO REALLY DELIVER THERE ALSO APPEARED TO BE LITTLE PROGRESS IN THE CONTINUING USJAPAN TALKS ON LOWERING TRADE BARRIERS THE SOCALLED FRAMEWORK TALKS BETWEEN US TRADE REPRESENTATIVE MICKEY KANTOR AND JAPANESE DEPUTY PRIME MINISTER TSUTOMU HATA WERE DESCRIBED AS SEVERE AND A VISIT TO JAPAN BY HIGHLEVEL US NEGOTIATORS WAS PUT ON HOLD IMPLYING A LACK OF PROGRESS PRIOR TO MR HOSOKAWA'S VISIT TO WASHINGTON ON FEB 11 TRADERS SAID EVENTS IN GERMANY AND JAPAN DIMMED THE MARKET'S REACTION TO MORE BULLISH US ECONOMIC NEWS THE COMMERCE DEPARTMENT SAID SALES OF NEW SINGLEFAMILY HOUSES ROSE A STRONGERTHANEXPECTED 114 IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 862000 THE HIGHEST SINCE 1988 9402030001 940203 BUSINESS BRIEF SPRINT'S NET ROSE 78 IN 4TH PERIOD LONGDISTANCE CELLULAR SERVICES CITED NEW YORK SPRINT CORP'S FOURTHQUARTER NET INCOME JUMPED 78 ON ROBUST REVENUE GROWTH IN LONGDISTANCE AND CELLULAR TELEPHONE SERVICES AND IMPROVED COSTCUTTING WHILE THE COMPANY IS STILL A DISTANT THIRD IN THE LONGDISTANCE MARKET BEHIND AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP SPRINT'S PROFIT AND REVENUE NUMBERS WERE HIGHER THAN ANALYSTS' PREDICTIONS SPRINT'S LOCAL PHONE OPERATIONS CONTINUED TO OUTPERFORM THE REGIONAL BELL COMPANIES IN REVENUE AND PHONELINE GROWTH FOURTHQUARTER NET WAS 1891 MILLION OR 55 CENTS A SHARE COMPARED WITH 1065 MILLION OR 31 CENTS A SHARE A YEAR EARLIER REVENUE GREW 10 TO 298 BILLION FROM 27 BILLION FOR THE YEAR CHARGES TOTALING 6194 MILLION IN 1993 RESULTED IN NET INCOME OF 549 MILLION OR 15 CENTS A SHARE DOWN 89 FROM 5028 MILLION OR 148 A SHARE IN 1992 THE CHARGES WERE TAKEN FOR POSTRETIREMENT BENEFITS EARLY DEBT RETIREMENT AND COSTS ASSOCIATED WITH SPRINT'S MERGER WITH CENTEL CORP REVENUE CLIMBED 9 TO 1137 BILLION FROM 1042 BILLION WE'VE GOT ALL OUR CYLINDERS RUNNING NOW WILLIAM T ESREY SPRINT'S CHAIRMAN SAID IN AN INTERVIEW SOME ANALYSTS BELIEVE SPRINT WILL SOON LINE UP INTERNATIONAL SERVICE PARTNERS AS MCI AND AT&T HAVE DONE BUT MR ESREY DECLINED TO COMMENT AN INTERNATIONAL DEAL WILL BE SIGNED IN THE NEXT TWO MONTHS CONTENDED BLAKE BATH AN ANALYST AT SANFORD BERNSTEIN & CO IT'S IMMINENT AND COULD INCLUDE AN EQUITY INFUSION FROM A MAJOR INVESTOR SPRINT IS CAPITAL CONSTRAINED SPRINT'S STOCK CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 37125 A SHARE UP 1625 OR 46 SPRINT'S LONGDISTANCE BUSINESS POSTED A 26 RISE IN OPERATING EARNINGS TO 133 MILLION IN THE QUARTER AND 61 GROWTH FOR THE YEAR TO 501 MILLION LONGDISTANCE REVENUE GREW 7 TO 16 BILLION FOR THE QUARTER AND ROSE 9 TO 614 BILLION FOR ALL OF 1993 SPRINT BASED IN WESTWOOD KAN PEGGED THE GAIN TO GROWTH IN THE CONSUMER AND SMALL BUSINESS MARKETS PARTICULARLY FROM TOLLFREE 800 LINES WHERE SPRINT SAID IT PICKED UP TWO PERCENTAGE POINTS SINCE LAST MAY CALLING TRAFFIC VOLUME GREW 7 FROM A YEAR EARLIER OPERATING PROFIT FROM LOCAL SERVICES GREW 28 TO 251 MILLION IN THE QUARTER AND ROSE 14 TO 954 MILLION FOR THE YEAR REVENUE IN THE SEGMENT INCREASED 9 TO 108 BILLION IN THE QUARTER AND ROSE 7 TO 413 BILLION FOR THE YEAR SPRINT SAID ITS LOCAL PHONE LINES GREW 48 TO MORE THAN 61 MILLION SPRINT'S CELLULAR BUSINESS HAD OPERATING PROFIT OF 3 MILLION IN THE QUARTER COMPARED WITH A YEAREARLIER LOSS OF 2 MILLION FOURTHQUARTER REVENUE GREW 50 TO 137 MILLION FOR THE YEAR CELLULAR OPERATIONS HAD OPERATING PROFIT OF 24 MILLION COMPARED WITH A LOSS OF 3 MILLION IN 1992 AND REVENUE INCREASED 44 TO 464 MILLION FROM 322 MILLION THE PREVIOUS YEAR SPRINT SAID ITS NUMBER OF CELLULAR SUBSCRIBERS GREW 67 LAST YEAR TO 652000 9402030185 940119 TEXAS JOURNAL WORKERS' COMP DID THE REFORMS HELP BIG BUSINESS SAYS YES SMALL FIRMS WORKERS AND THE COURTS SAY NO BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN TEXAS LEGISLATORS OVERHAULED THE WORKERS' COMPENSATION SYSTEM IN 1989 THE NEW LAW WAS HAILED AS A MODEL FOR OTHER STATES A MODEL IT DEPENDS WHOM YOU ASK FOR MANY OF THE STATE'S LARGEST BUSINESSES THE REFORMS DESIGNED TO LOWER COSTS AND IMPROVE BENEFITS HAVE WORKED WELL BUT ASK SMALL BUSINESSES AND IT'S A DIFFERENT STORY MANY REMAIN OUTSIDE THE SYSTEM ARGUING THAT COSTS HAVEN'T COME DOWN NEARLY AS MUCH AS PROMISED IF THEY HAVE COME DOWN AT ALL AND INJURED WORKERS ARE EVEN MORE UPSET COMPLAINING THAT THEY ARE CAST ADRIFT IN A COMPLEX HEARING PROCESS OUTGUNNED BY COMPANY LAWYERS AND ABANDONED BY PLAINTIFFS' ATTORNEYS WHO WON'T WORK UNDER LIMITS ON LEGAL FEES IN FACT A STATE APPEALS COURT IN AUGUST RULED THE LAW UNCONSTITUTIONALLY DEPRIVES WORKERS OF THEIR RIGHT TO FAIR COMPENSATION FOR WORKPLACE INJURIES AND EVEN IF THE LAW IS UPHELD BY THE STATE SUPREME COURT IT HAS TO SURVIVE A CONCERTED ATTACK BY LEGISLATIVE ENEMIES IN THE 1995 SESSION THE TEXAS REFORMS HAVE BEEN TOUTED AS A MODEL FOR OTHER STATES SAYS DEECE ECKSTEIN A MEMBER OF THE STATE BOARD OF INSURANCE BUT IT HASN'T BEEN ESTABLISHED YET THAT THE BENEFITS HAVE BEEN IMPROVED FOR INJURED WORKERS OR THAT COSTS HAVE GONE DOWN FOR MOST BUSINESSES ESPECIALLY SMALL BUSINESSES THAT WASN'T THE WAY IT WAS SUPPOSED TO BE FOUR YEARS AGO WHEN LEGISLATORS APPROVED SWEEPING CHANGES IN THE 75YEAROLD SYSTEM FOR COMPENSATING EMPLOYEES FOR WORKPLACE INJURIES TAKING AIM AT RUNAWAY COSTS THAT THREATENED TO CHASE INSURERS AND BUSINESSES FROM THE STATE LEGISLATORS SET STANDARDS BASED ON AMERICAN MEDICAL ASSOCIATION GUIDELINES FOR DETERMINING DISABILITY TIED ATTORNEYS' FEES TO ACTUAL TIME AND EXPENSES AND PUT LIMITS ON LUMPSUM SETTLEMENTS EMPLOYERS IN TEXAS CAN BUY WORKERS' COMPENSATION INSURANCE FROM AMONG SOME 260 PRIVATE INSURERS OR FROM THE TEXAS WORKERS' COMPENSATION INSURANCE FUND A PRIVATE FUND CAPITALIZED BY A STATE BOND ISSUE LARGE EMPLOYERS ALSO CAN SELF INSURE WHILE KEEPING THE LAW'S PROTECTION AGAINST LARGE LEGAL JUDGMENTS BUT TEXAS IS ALSO ONE OF THREE STATES THAT ALLOW EMPLOYERS TO GO BARE NOT PROVIDE ANY WORKERS' COMPENSATION COVERAGE AT ALL MANY COMPANIES INSTEAD PAY FOR EMPLOYEES' INJURIES OUT OF POCKET OR BY PURCHASING STANDARD HEALTH AND DISABILITY POLICIES ALONG WITH AN INDEMNITY POLICY TO GUARD AGAINST CATASTROPHIC CLAIMS ACCORDING TO A STUDY BY TEXAS A&M UNIVERSITY 44 OF BUSINESSES IN THE STATE DON'T PROVIDE WORKERS' COMP INSURANCE THAT MAY CHANGE THE TEXAS WORKERS' COMPENSATION COMMISSION IS CONSIDERING ASKING FOR A LEGISLATIVE REVIEW OF MANDATORY COVERAGE COMMISSIONERS COULD DECIDE TOMORROW TO INCLUDE THE ISSUE IN A LIST OF TOPICS FOR CONSIDERATION BY THE TEXAS SUNSET COMMISSION BY MANY MEASURES THE REFORMS WHICH HAVE THE SUPPORT OF MOST OF THE STATE'S BUSINESS ASSOCIATIONS HELPED DOUBLEDIGIT INCREASES IN PREMIUMS PAID BY BUSINESSES TO INSURANCE COMPANIES HAVE BEEN CURBED AND TOTAL PREMIUMS DROPPED BY 25 IN 1992 TO 29 BILLION FROM 4 BILLION IN A RECENT SURVEY BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS NEARLY A THIRD OF TEXAS SMALL BUSINESSES THAT ARE IN THE SYSTEM SAW THEIR RATES FALL IN THE PAST YEAR AT THE SAME TIME COMPENSATION FOR SOME WORKERS HAS IMPROVED THE AVERAGE WEEKLY BENEFIT HAS INCREASED TO 250 FROM 190 UNDER THE OLD LAW MAXIMUM BENEFITS HAVE NEARLY DOUBLED TO 464 A WEEK BUT LOOK A LITTLE CLOSER AND THE GAINS BECOME LESS IMPRESSIVE NEARLY HALF OF THOSE SURVEYED SMALL BUSINESSES FOR INSTANCE SAID THEIR WORKERS' COMP RATES ROSE IN THE PAST YEAR MOREOVER 1 BILLION OF THE 11 BILLION DECLINE IN PREMIUMS STEMS FROM THE FACT THAT UNDER THE NEW LAW INSURANCE COMPANIES CAN OFFER DEDUCTIBLES THE COSTS IN OTHER WORDS HAVE BEEN SHIFTED FROM THE FRONT END TO THE BACK IN ADDITION CRITICS SAY THE USE OF DEDUCTIBLES PRIMARILY HELPS LARGE COMPANIES WHICH CAN BETTER ABSORB BIG LOSSES BIG ENTERPRISES ALSO CAN USE THEIR CLOUT TO NEGOTIATE RATES BELOW THE STATEESTABLISHED BENCHMARKS LITTLE WONDER THEN THAT 88 OF BUSINESSES WITH MORE THAN 1000 EMPLOYEES HAVE CHOSEN TO REMAIN IN THE SYSTEM COMPARED WITH 60 OF THOSE WITH TWO TO FIVE EMPLOYEES CERTAINLY TOM WEEKLEY OWNER OF WHALEN FURNITURE INC IN MCALLEN HASN'T SEEN HIS RATES FALL HIS RATES JUMPED 88 IN 1992 LEAVING HIS ANNUAL PREMIUMS AT TWICE THEIR 1990 LEVEL EVEN THOUGH HE HASN'T HAD A CLAIM IN 14 YEARS FOR THEIR PART INSURERS INSIST THEY NEED TO RECOUP LOSSES INCURRED UNDER THE OLD SYSTEM WHILE MANY REMAIN RELUCTANT TO LOWER RATES WHILE THE REFORMS STILL COULD BE REVERSED BY THE COURTS PERHAPS BUT UNTIL RATES COME DOWN SIGNIFICANTLY MANY COMPANIES WILL CONTINUE TO OPT OUT OF THE SYSTEM A CASE IN POINT SOUTHERN FOODS GROUP INC A DALLAS MILKPROCESSING COMPANY WITH 2200 EMPLOYEES WHICH DECIDED TWO YEARS AGO TO OPERATE WITHOUT WORKERS' COMP INSURANCE THE BIG REASON SAYS PAMELA BUSH THE COMPANY'S OCCUPATIONALINJURY BENEFITS MANAGER WAS COST SINCE LEAVING THE SYSTEM SHE SAYS PREMIUMS THAT WERE IN THE MILLIONS HAVE BEEN ELIMINATED INSTEAD THE COMPANY PAYS INJURED WORKERS' MEDICAL EXPENSES AND 80 OF LOST SALARY FOR AS LONG AS AN INJURED EMPLOYEE IS OFF WORK COMPARED WITH 70 TO 75 FOR NO MORE THAN TWO YEARS UNDER WORKERS' COMPENSATION AND IT BUYS AN INDEMNITY POLICY TO COVER CATASTROPHIC LOSSES AND INSTEAD OF SENDING PERMANENTLY DISABLED WORKERS A CHECK TO COMPENSATE FOR THE LOSS OF WAGEEARNING CAPACITY SOUTHERN RETRAINS ITS EMPLOYEES FOR NEW JOBS SOUTHERN'S ANNUAL COSTS NOW LESS THAN 1 MILLION NONSUBSCRIPTION ALSO DOES AWAY WITH THE INSURANCECOMPANY MIDDLEMAN MS BUSH SAYS ALLOWING HER TO COMMUNICATE DIRECTLY WITH THE INJURED WORKER AND GIVING HER GREATER CONTROL OVER TREATMENT FOR THOSE OF US WHO HAVE REALLY GOOD ALTERNATIVE PROGRAMS GOING BACK WOULD BE DEVASTATING SHE SAYS NONSUBSCRIBERS HOWEVER FACE SUBSTANTIAL RISKS A COMPANY WITHOUT WORKERS' COMP INSURANCE HAS TO BE ONLY PARTLY NEGLIGENT TO BE FULLY LIABLE FOR DAMAGES AND WHILE CLAIMS FOR DAMAGES UNDER THE WORKERS' COMP LAW ARE CAPPED OUTSIDE THE SYSTEM THEY ARE LIMITLESS WITNESS A RECENT CASE IN HOUSTON IN WHICH A TRUCK DRIVER SLIPPED OUT OF HIS TRUCK INJURING HIS BACK AND SUSTAINING 17000 IN MEDICAL COSTS HIS JURY AWARD 35 MILLION STILL IF BUSINESSES ARE UNHAPPY WITH THE NEW LAW INJURED WORKERS ARE DEVASTATED FOR MANY INJURED WORKERS NONSUBSCRIPTION CAN MEAN THEY ARE AT THE MERCY OF NOTALWAYSBENEVOLENT EMPLOYERS SOME FEEL THEY ARE RUSHED BACK TO WORK TOO SOON OR THAT HARDTOVERIFY INJURIES SUCH AS BACK PAIN ARE DOWNPLAYED IT'S A FIEFDOM SAYS RICHARD LEVY TEXAS AFLCIO'S STAFF COUNSEL THERE ISN'T A SYSTEM TO INSURE THAT THE WORKER'S RIGHTS ARE PROTECTED MOREOVER PLAINTIFFS' LAWYERS WHO IN THE PAST DID VERY WELL PRESSING WORKERS' COMPENSATION CLAIMS HAVE ALL BUT ABANDONED THE FIELD THEY COMPLAIN THAT THE NEW LIMITS ON FEES AND LUMPSUM SETTLEMENTS HAVE MADE COMPENSATION CASES UNAFFORDABLE THIS IS ABOUT THE WORST LAW I'VE EVER SEEN THE TEXAS LEGISLATURE PASS SAYS PHIL HARDBERGER A SAN ANTONIO ATTORNEY WHOSE WORKERS' COMPENSATION CASE LOAD HAS PLUNGED TO TWO FROM 400 MARY FLORES A CARDIAC NURSE IN SAN ANTONIO DIDN'T HAVE A LAWYER WHEN SHE PRESSED HER CLAIM FOR A CHRONIC FOOT INJURY THROUGH THE TEXAS WORKERS' COMPENSATION COMMISSION'S NEW HEARING PROCESS SHE WON HER CASE IN AN ADMINISTRATIVE HEARING BUT A COMMISSION APPEALS PANEL OVERTURNED THE DECISION SHE THEN SCOURED PAGE AFTER PAGE IN THE TELEPHONE BOOK LOOKING FOR A LAWYER WILLING TO APPEAL HER CASE IN STATE COURT NO TAKERS WHEN YOU HAVE AN ATTORNEY THEY KNOW THE LAW THEY KNOW WHEN TO MOVE FAST AND THEY WILL FIGHT FOR YOU MS FLORES SAYS IF YOU DON'T HAVE AN ATTORNEY YOU CAN'T DO ANYTHING I THINK THE LAW IS VERY UNFAIR SO FAR STATE COURTS HAVE AGREED MOST RECENTLY THE FOURTH COURT OF APPEALS IN SAN ANTONIO UPHELD A STATE DISTRICT JUDGE AND FOUND THE WORKERS' COMP REFORMS UNCONSTITUTIONAL IN A 4TO3 DECISION WHICH HAS BEEN APPEALED TO THE STATE SUPREME COURT THE COURT FOUND IT WAS ARBITRARY AND IRRATIONAL TO MAKE IT HARD FOR ONLY ONE SIDE TO HIRE A LAWYER THE APPEALS COURT FOUND MUCH IN THE LAW TO FAULT IT CONCLUDED THE AMA GUIDELINES ARE IRRELEVANT IN DETERMINING HOW MUCH A SPECIFIC INJURY IS LIKELY TO IMPAIR JOB PERFORMANCE AND THAT THE LIMITS ON JURY TRIALS DENIES ACCESS TO THE COURTS BACKERS WORRY THAT A LESSTHANRESOUNDING REJECTION OF THE LOWER COURTS' ARGUMENTS COULD CAST A PALL OVER THE LEGISLATURE'S SUNSET REVIEW OF THE WORKERS' COMP COMMISSION AND EVEN WITH A FAVORABLE COURT DECISION INDUSTRY EXPECTS A TOUGH LOBBYING EFFORT BY TRIAL LAWYERS AND ORGANIZED LABOR TO GUT THE LAW CONCEDES DICK BROWN AN INSURANCEINDUSTRY LOBBYIST IT'S GOING TO TAKE A COLOSSAL STRUGGLE TO GET THE SYSTEM THROUGH INTACT SEE LETTERS TO THE EDITOR INSURERS SAY WORKERS' COMP WORKS AND RATE WAR BRINGS BACK NONSUBSCRIBERS WSJ JAN 24 1994 9401190173 YY94 MM02 9402030161 940126 LET 'EM ROT BY JOHN J DIIULIO JR IN HIS STATE OF THE UNION ADDRESS LAST NIGHT PRESIDENT CLINTON TOOK A STEP IN THE RIGHT DIRECTION ON CRIME FOR EXAMPLE THE PUBLIC WANTS THRICECONVICTED VIOLENT CRIMINALS LOCKED UP FOR GOOD AND LAST NIGHT THE PRESIDENT HEEDED THEIR CALL BUT WHO REALLY SPEAKS FOR THIS ADMINISTRATION ON CRIME THE PRESIDENT OR ATTORNEY GENERAL JANET RENO MS RENO HAS CHALLENGED THE NEED FOR MANDATORY MINIMUM PRISON SENTENCES PRAISED 1960SSTYLE CRIMINAL REHABILITATION PROGRAMS THAT DON'T WORK AND MUMBLED ABOUT PREVENTION EVEN AS VIOLENT CRIMES BY JUVENILES HAVE REACHED HORRIFYING NEW HEIGHTS ON CRIME AND OTHER ISSUES LAST NIGHT THE PRESIDENT SOUNDED LIKE A BORNAGAIN NEW DEMOCRAT BUT WHEN POLITICAL PUSH COMES TO POLICY SHOVE WILL HE CHOOSE THE CENTRIST MAJORITIES OF BOTH PARTIES OVER THE LIBERAL ELITE OF HIS OWN THE RECORD OF THE PAST YEAR IS HARDLY ENCOURAGING BUT THE CRIME ISSUE AFFORDS HIM THE PERFECT OPPORTUNITY TO REHABILITATE HIMSELF AS THE PRESIDENT'S POLLSTERS SURELY KNOW SOLID MAJORITIES OF AMERICANS INCLUDING OVERWHELMING MAJORITIES OF AFRICANAMERICANS BELIEVE THAT CRIMINALS WHO ASSAULT RAPE ROB BURGLARIZE DEAL DRUGS OR MURDER SHOULD BE ARRESTED PROSECUTED AND PUNISHED IN A SWIFT AND CERTAIN FASHION THEY BELIEVE THAT VIOLENT AND REPEAT CRIMINALS SHOULD BE IMPRISONED THAT A PRISON SENTENCE OF X YEARS SHOULD MEAN A PRISON SENTENCE OF X YEARS TRUTHINSENTENCING THAT CRIMINALS WITH MULTIPLE CONVICTIONS SHOULD RECEIVE LONG PRISON SENTENCES OR LIFE WITHOUT PAROLE TWO OR THREETIMELOSER LAWS AND THAT CAPITAL PUNISHMENT IS WARRANTED ON BOTH SOCIAL AND MORAL GROUNDS AMONG THE LIBERAL ELITE HOWEVER ONLY GUN CONTROL IS POLITICALLY CORRECT CRIMINAL CONTROL ISN'T FOR A GENERATION NOW THE SORTS OF PEOPLE WHO HAVE BEEN CHEERING MS RENO'S SPEECHES HAVE BEEN SPEAKING CONDESCENDINGLY OF THE NEED TO EDUCATE THE PUBLIC ABOUT THE VIRTUES OF ALTERNATIVES TO INCARCERATION AND LAMENTING THE OSTENSIBLE FAILURE OF POLICY MAKERS TO RESIST PUBLIC PRESSURES TO LOCK UP STREET PREDATORS BY EVERY MEASURE THE ANTIINCARCERATION ELITE HAS BEEN WINNING ITS TUGOFWAR WITH THE PUBLIC ON CRIME THE SOCALLED GETTOUGH LAWS OF THE 1980S WERE FILLED WITH GETOUTOFJAIL LOOPHOLES PRISON IS NOW THE ALTERNATIVE SENTENCE ABOUT THREE OF EVERY FOUR CONVICTED CRIMINALS MORE THAN THREE MILLION PEOPLE ARE ON THE STREETS WITHOUT MEANINGFUL PROBATION OR PAROLE SUPERVISION THE AVERAGE TIME SERVED IN CONFINEMENT FELL BY SEVERAL MONTHS IN THE 1980S MOST CONVICTED CRIMINALS SPEND ONLY ABOUT ONETHIRD OF THEIR SENTENCES IN PRISON ON AVERAGE CONVICTED RAPISTS SPEND BARELY FIVE YEARS IN PRISON ROBBERS SPEND 39 YEARS ASSAULTERS AND BURGLARS SPEND BARELY TWO YEARS AND DRUG TRAFFICKERS SPEND LESS THAN TWO YEARS ONLY 42 OF REPORTED MURDERS RESULT IN A PRISON SENTENCE MOST CONVICTED MURDERERS SPEND WELL UNDER 10 YEARS BEHIND BARS THE SWISS CHEESE OF MANDATORY SENTENCING LAWS HAS LEFT LITTLE ROOM BEHIND BARS FOR PETTY FIRSTTIME OR NONVIOLENT CRIMINALS MORE THAN 93 OF STATE PRISONERS ARE VIOLENT CRIMINALS REPEAT CRIMINALS WITH TWO OR MORE FELONY CONVICTIONS OR VIOLENT REPEAT CRIMINALS MOST OF THE PROPERTY OFFENDERS BEHIND BARS HAVE LONG CRIMINAL HISTORIES AND A PROPENSITY FOR VIOLENCE WITHIN THREE YEARS ABOUT TWOTHIRDS OF ALL PROBATIONERS GET INTO SERIOUS TROUBLE WITH THE LAW AGAIN AND 20 OF RELEASED PROPERTY OFFENDERS ARE REARRESTED FOR A VIOLENT CRIME IT'S TRUE THAT MEASURED IN RELATION TO THE COUNTRY'S TOTAL RESIDENTIAL POPULATION THE RATE OF INCARCERATION IN THE US HAS BEEN GOING UP BUT SO HAS THE RATE OF CEREAL CONSUMPTION BIKEHELMET WEARING AND GASOLINE CONSUMPTION THE RELEVANT MEASURE IS THE RATE OF INCARCERATION RELATIVE TO THE NUMBER OF SERIOUS CRIMES BEING COMMITTED TODAY ONLY SOME 7 OF BURGLARIES IN THE US EVER RESULT IN AN ARREST AND BARELY 12 EVER RESULT IN IMPRISONMENT AND THE PROBABILITY THAT A VIOLENT CRIMINAL OR VIOLENT REPEAT CRIMINAL WILL GO TO PRISON AND SERVE MOST OF HIS TIME BEHIND BARS IN THE US IS TODAY ONLY ABOUT ONEFIFTH WHAT IT WAS IN THE EARLY 1960S EVEN THOUGH CRIME HAS LONG BEEN A LEADING PUBLIC CONCERN BARELY A HALF CENT OF EVERY GOVERNMENT DOLLAR FEDERAL STATE AND LOCAL GOES TO KEEPING CONVICTED CRIMINALS BEHIND BARS AND JUST OVER THREE CENTS GOES TO ALL CRIMINAL JUSTICE ACTIVITIES COPS COURTS AND CORRECTIONS INDEED AMERICAN TAXPAYERS SPEND ABOUT SEVEN TIMES MORE ON TRANSPORTATION 12 TIMES MORE ON PUBLIC WELFARE PROGRAMS AND 27 TIMES MORE ON EDUCATION AND LIBRARIES THAN THEY DO ON PRISON AND JAILS IN SHORT THE PEOPLE KNOW WHAT THE RENOS DENY AMERICA HAS CRIME WITHOUT PUNISHMENT AND IT HAS GOT TO STOP IF WE ARE EVEN GOING TO REBUILD PUBLIC CONFIDENCE IN GOVERNMENT LET ALONE OUR ECONOMICALLY CRIMERAVAGED INNER CITIES BUT AS YEARS OF PUBLIC FRUSTRATION WITH CRIME HAVE BEGUN TO BOIL OVER THE PEOPLE ARE BEING SUBJECTED TO A LASTDITCH ANTIINCARCERATION DODGE EVEN THOUGH PUBLIC SPENDING ON PRISONS RELATIVE TO OTHER GOVERNMENT ACTIVITIES IS A PITTANCE IT WOULD COST TOO MUCH WE ARE TOLD TO IMPRISON ALL VIOLENT REPEAT CRIMINALS FOR ALL OR MOST OF THEIR TERMS EVEN IF CRIME PAYS STIFFENING SENTENCES ABOLISHING PAROLE AND ADDING PRISONS WON'T HELP THE BEST AVAILABLE EVIDENCE HOWEVER SUGGESTS THAT PRISON PAYS FOR MOST PRISONERS IN 1987 A JUSTICE DEPARTMENT STUDY ANALYZED THE SOCIAL COSTS AND BENEFITS OF IMPRISONMENT THAT STUDY GAVE RISE TO A STORM OF CRITICISM MOST OF IT PURELY IDEOLOGICAL SINCE THEN A NUMBER OF INDEPENDENT STUDIES INCLUDING ONE BY HARVARD ECONOMIST ANN PIEHL AND ME PUBLISHED IN THE BROOKINGS REVIEW HAVE BEEN DONE THEY SUGGEST THAT ON AVERAGE IT COSTS SOCIETY ABOUT TWICE AS MUCH TO LET A CRIMINAL ROAM THE STREETS AS IT DOES TO KEEP HIM BEHIND BARS PRISONER SELFREPORT SURVEYS CONDUCTED IN NEW JERSEY WISCONSIN AND OTHER JURISDICTIONS REVEAL THAT THE TYPICAL STREET CRIMINAL COMMITS MORE THAN A DOZEN SERIOUS CRIMES A YEAR WHEN FREE EXCLUDING ALL DRUG CRIMES EACH CRIME IMPOSES COSTS ON ITS VICTIMS AND ON SOCIETY PHYSICAL PAIN AND SUFFERING HOSPITAL BILLS DAYS LOST FROM WORK PSYCHOLOGICAL TRAUMA INCLUDING THE TRAUMA OF EXPERIENCING A MERE PROPERTY CRIME SUCH AS BURGLARY ACCORDING TO SEVERAL STUDIES IT COSTS SOCIETY HUNDREDS OF BILLIONS OF DOLLARS EACH YEAR TO HEAL THE ECONOMIC AND HUMAN WOUNDS WROUGHT BY STREET CRIME PRISON PAYS FOR CHRONIC JUVENILE OFFENDERS TOO FOR EXAMPLE IN 1983 THE FEDERAL GOVERNMENT BEGAN A PROGRAM FOR SERIOUS HABITUAL JUVENILE CRIMINALS IN 20 CITIES LAW ENFORCEMENT OFFICIALS IDENTIFIED JUVENILES WHO HAD DONE THREE OR MORE MAJOR CRIMES THESE JUVENILES WERE TARGETED FOR ARREST AND PROSECUTION AND THEY RECEIVED THE MAXIMUM PENALTIES AVAILABLE UNDER LAW AS A RESULT OF THIS PROGRAM A NUMBER OF JURISDICTIONS EXPERIENCED SHARP DECREASES IN BOTH VIOLENT AND PROPERTY CRIMES GETTOUGH POLITICS IS GOOD CRIME POLICY ONE CAN ONLY HOPE THAT THE PRESIDENT WHO DELIVERED LAST NIGHT'S SPEECH WILL ORDER HIS ATTORNEY GENERAL TO PUBLISH A LIST OF THE FEDERAL AND STATE PRISONERS WHO SHE BELIEVES OUGHT NEVER TO HAVE BEEN INCARCERATED COMPLETE WITH AN OBJECTIVE ACCOUNT OF THEIR CRIMINAL HISTORIES OR INSIST THAT SHE STOP SPOUTING WACOREASONED CANT ABOUT MANDATORY PRISON TERMS LET HIM FURTHER DEMAND THAT SHE SUPPORT NEW MANDATORY MINIMUM SENTENCES FOR VIOLENT AND REPEAT CRIMINALS OR DETAIL HER FUNDAMENTAL DISAGREEMENTS WITH PRESIDENTIAL POLICY AND RESIGN AND LET HIM BROOK NO NONSENSE FROM DEMOCRATIC CONGRESSMEN WHO DEMAND MORE MONEY FOR GREAT SOCIETY RETREADS AS THE PRICE OF THEIR SUPPORT FOR SERIOUS ANTICRIME MEASURES IF THE PRESIDENT BREAKS FAITH WITH THE PUBLIC ON CRIME HE WILL BE A THREETIME LOSER MORALLY INTELLECTUALLY AND POLITICALLY LET US HOPE THAT LAST NIGHT'S WORDS MEAN THAT WHEN IT COMES TO THE GOVERNMENT'S ROLE IN FIGHTING CRIME HE'S DECIDED TO GO STRAIGHT MR DIIULIO IS PROFESSOR OF POLITICS AND PUBLIC AFFAIRS AT PRINCETON UNIVERSITY AND A FELLOW IN GOVERNMENTAL STUDIES AT THE BROOKINGS INSTITUTION SEE RELATED LETTER LETTERS TO THE EDITOR YOUR UGLY SENTIMENT NOT MINE WSJ FEB 3 1994 9401260192 YY94 MM02 9402030135 940117 REVIEW & OUTLOOK EDITORIAL SWARTHMORE'S CONFUSED CORRECTNESS NEVER UNDERESTIMATE THE DELIRIUM THAT CAN NOWADAYS SEIZE COLLEGE ADMINISTRATORS FORCED TO ADJUDICATE THE MANY MODERN CORRECTNESSES ESPECIALLY HARASSMENT OR INTIMIDATION THE LATEST CAUTIONARY FIASCO COMES FROM PRESTIGIOUS SWARTHMORE COLLEGE IN PENNSYLVANIA SWARTHMORE NOW HAS THE DISTINCTION OF HAVING FORCED THE DEPARTURE OF A MALE STUDENT ON NO BETTER GROUNDS THAN THE ACCUSATION THAT HE CAUSED A YOUNG WOMAN TO FEEL INTIMIDATED IT THEN OFFERED TO PAY HIS TUITION AND FACILITATE HIS ENTRY IF HE WOULD GO TO ANOTHER SCHOOL NO ONE SHOULD DOUBT AND WE DON'T THAT THERE WERE COMPLEXITIES IN THE CASE OF 18YEAROLD FRESHMAN EWART YEARWOOD IT'S CLEAR TOO THAT A COLLEGE HAS THE RIGHT AND INDEED THE DUTY TO ENFORCE A STANDARD OF CIVILIZED CONDUCT THE PROBLEM IS THAT COLLEGE ADMINISTRATORS' NOTIONS OF THEIR DUTY ARE TODAY SO PROFOUNDLY MUDDLED BY THE POLITICIZED PARANOIA NOW REIGNING ON CAMPUSES THAT IT HAS BECOME IMPOSSIBLE FOR SOME OF THEM TO DISTINGUISH BETWEEN A FACT AND A CHARGE THE SWARTHMORE CASE BEGAN IN SEPTEMBER WHEN FRESHMAN ALEXIS CLINANSMITH COMPLAINED TO A DEAN THAT MR YEARWOOD HAD HARASSED AND INTIMIDATED HER BY HANGING AROUND LEAVING A SIGN TELLING HER SHE WAS A BEAUTIFUL WOMAN GOING TO HER ROOM UNINVITED BY TOSSING HIS LACROSSE STICK BACK AND FORTH WHILE HE TALKED TO HER WHICH SHE FOUND ALARMING BY THE TIME IT ENDED THIS MONTH EWART YEARWOOD HAD BEEN FORCED OUT AND WAS BEING PORTRAYED BY SCHOOL OFFICIALS AND A PUBLIC RELATIONS TEAM HIRED BY SWARTHMORE AS HAVING DEEP AND DANGEROUS PSYCHOLOGICAL PROBLEMS NOT SURPRISINGLY SOME ALARMED STUDENTS AT COLUMBIA UNIVERSITY WHERE MR YEARWOOD HOPED TO SPEND THE SPRING SEMESTER GOT THE IDEA THAT SOMEONE ONLY SLIGHTLY LESS DANGEROUS THAN AN AX MURDERER COULD BE HEADED THEIR WAY COLUMBIA HAS REFUSED TO ACCEPT HIM NOTWITHSTANDING SWARTHMORE OFFICIALS' EFFORTS TO GET HIM ADMITTED SURELY NO COLLEGE HEAD AS WELLINTENTIONED AS SWARTHMORE PRESIDENT AL BLOOM HAS BEEN REPRESENTED TO BE WOULD TRY TO FOB OFF A STUDENT TO ANOTHER COLLEGE IF HE ACTUALLY BELIEVED THAT STUDENT GUILTY OF A MENACING PATTERN OF BEHAVIOR SCHOOL OFFICIALS NOW HAVE TAKEN TO ACCUSING MR YEARWOOD OF PUBLICITY MONGERING AND STARTING A MEDIA BLITZ NOW THIS IS AN ODD CHARGE CONSIDERING THE WAY THE COLLEGE'S PUBLIC RELATIONS TEAM HAS BEEN BURNING UP THE TELEPHONE WIRES CALLING THE PRESS TO SPIN THE PICTURE OF MR YEARWOOD AS A HIGHLY DISTURBED THREATENING FIGURE IN DEEP NEED OF PSYCHOLOGICAL HELP EWART YEARWOOD IS A MUSCULAR HISPANIC MALE BROUGHT UP IN ONE OF NEW YORK'S ROUGHEST NEIGHBORHOODS WHO MANAGED TO TURN HIMSELF INTO A WELLEDUCATED STUDENT OF UNDENIABLE INTELLECTUAL GIFTS HE IS ALSO A YOUNG MAN NOT GIVEN TO SMILING MUCH WHEN ANGRY HE LOOKS ANGRY ACCORDING TO THE ACCUSING WOMAN AND HER FRIENDS THERE WAS SOMETHING ABOUT EWART THAT FRIGHTENED AND INTIMIDATED THEM THIS VAGUE TESTIMONY IS WHAT THE ADMINISTRATION CITED AS PROOF OF THE CHARGES AGAINST HIM IN THIS AGE AS WE'VE SEEN BEFORE IT IS NO LONGER NECESSARY TO PROVIDE CLEAR PROOF OF AN OFFENSE THE STUDENT NEED ONLY FEEL INTIMIDATED AND HARASSED UPON THE FIRST COMPLAINT THAT HE MADE MS CLINANSMITH UNCOMFORTABLE MR YEARWOOD WAS DIRECTED TO FOLLOW A PATTERN OF ACTIVE AVOIDANCE SUBSEQUENTLY THE COMPLAINANT CHARGED MR YEARWOOD AT A DANCE HAD MUTTERED UNPLEASANT COMMENTS TO HIS FRIENDS THAT MS CLINANSMITH OVERHEARD AND HAD LOOKED AT HER DURING A FOOTBALL GAME HE WAS FORCED TO LEAVE CAMPUS FOR SIX DAYS TILL A DEANS' TRIBUNAL COULD BE CONVENED THE TRIBUNAL ULTIMATELY FOUND HIM GUILTY OF THE CHARGE THAT HE WAS INSUFFICIENTLY METICULOUS IN FOLLOWING THE ACTIVE AVOIDANCE ORDERS BUT IT FAILED TO FIND HIM GUILTY OF HARASSMENT AND INTIMIDATION HE WAS NONETHELESS TO BE SUSPENDED FOR THE SPRING SEMESTER AND INSTRUCTED DURING THE CURRENT ONE TO STAY 40 FEET AWAY FROM THE YOUNG WOMAN IT IS NOTEWORTHY THAT THESE SANCTIONS HAD FALLEN ON MR YEARWOOD EVEN THOUGH HE HAD NOT BEEN FOUND GUILTY OF HARASSMENT AND INTIMIDATION AS HIS PRO BONO LAWYER HARVEY SILVERGLATE EXPLAINS THERE ARE NOW APPARENTLY CRIMES SO TERRIBLE THAT INNOCENCE ITSELF IS NOT AN ADEQUATE DEFENSE SHORTLY AFTER THE 40FOOT ORDER DEAN NGINA LYTHCOTT INFORMED MR YEARWOOD THAT HE WAS CHARGED WITH HAVING COME WITHIN 15 FEET OF MS CLINANSMITH IN THE DINING HALL AND ANOTHER TIME AS CLOSE AS FOUR FEET MATTERS WENT DOWNHILL FROM THERE THE YOUNG WOMAN WHO PRESSED FOR MR YEARWOOD'S REMOVAL DESERVES SYMPATHY IF ONLY FOR THE REASON THAT SHE LIVES IN TIMES SO GENUINELY FRIGHTENING IT IS A TIME SO SHAPED BY A PREOCCUPATION WITH PERSONAL RIGHTS AND THE TERRORS OF MALE SEXUAL AGGRESSION THAT A CASE OF CRUDE AMOROUS PERSISTENCE CAN BE CONVERTED INTO CRIMINAL STALKING ONCE UPON A TIME LERNER AND LOEWE WROTE A MUSICAL CALLED MY FAIR LADY IN WHICH A REJECTED SUITOR CALLED FREDDY HUNG ABOUT AND SANG ON THE STREET WHERE YOU LIVE IT WAS ALL TERRIBLY ROMANTIC TODAY A YOUNG MAN HANGING AROUND IS LIKELY TO BE CHARGED WITH INTIMIDATION AND TERRORIZATION ONCE UPON A TIME TOO COLLEGE ADMINISTRATORS WHO WANTED TO IMPROVE BEHAVIOR WOULD TELL A STUDENT TO SHAPE UP OR GET OUT TODAY AT THE FIRST COMPLAINT THE MACHINERY OF TRIBUNALS AND WITNESSES BEGIN ROLLING ALONG WITH ELABORATE ARRANGEMENTS ABOUT THE NUMBER OF FEET THE ACCUSED IS REQUIRED TO PUT BETWEEN HIMSELF AND THE ACCUSER SOME DAYS THE RETURN OF REASON SEEMS A LONG WAY OFF SEE RELATED LETTER LETTERS TO THE EDITOR AMOROUS PERSISTENCE OR CRIMINAL STALKING WSJ FEB 3 1994 9401170021 YY94 MM02 9402030105 940126 TEXAS JOURNAL WHY THE INCREASE HOW DO WE COMPARE ANSWERING QUESTIONS ABOUT ELECTRIC RATES BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS PUBLIC UTILITY COMMISSION SPOKE LAST WEEK AND CONSUMERS ARE SCRAMBLING TO FIND THE MEANING THE COMMISSION'S APPROVAL OF A 439 MILLION RATE INCREASE FOR TU ELECTRIC WAS THE FIRST MAJOR RATECASE DECISION BY THE CURRENT COMMISSION WHICH NOW CONSISTS ENTIRELY OF GOV ANN RICHARDS'S APPOINTEES ALTHOUGH LARGE THE INCREASE WAS HALF OF WHAT TU ELECTRIC HAD REQUESTED THE LAST TIME THE UTILITY CAME TO THE RATE TABLE IN 1991 IT RECEIVED ALL OF THE 442 MILLION INCREASE IT SOUGHT BUT HOW DOES THE COMMISSION DECIDE AND WHO CAN ASK IT TO REVIEW RATES HERE ARE ANSWERS TO SOME OFTENASKED QUESTIONS ABOUT ELECTRIC RATES IN TEXAS HOW DO TEXAS' RATES COMPARE WITH RATES IN THE REST OF THE COUNTRY IT DEPENDS ON WHAT YOU COMPARE TEXAS' AVERAGE DECEMBER RATE IS LOWER THAN THE NATIONAL AVERAGE LARGELY BECAUSE OF LOW RATES CHARGED BY THE STATE'S RURAL COOPERATIVES AND BECAUSE THE NATIONAL RATE IS SKEWED BY HIGH COSTS IN BOSTON AND NEW YORK BUT CUSTOMERS OF MOST OF THE LARGE INVESTOROWNED UTILITIES IN TEXAS PAY HIGHER RATES THAN NEARLY EVERY OTHER MAJOR CITY IN THE COUNTRY THAT GAP IS EVEN MORE PRONOUNCED WHEN YOU LOOK AT AVERAGE MONTHLY BILLS PARTICULARLY IN THE SUMMER WHEN USAGE IS HIGHEST THE AVERAGE BILL IN AUGUST IN TEXAS IS 101 COMPARED WITH A NATIONAL AVERAGE OF 75 AT INVESTOROWNED UTILITIES WHO PAYS THE HIGHESTAND LOWESTRATES IN TEXAS BY NEARLY EVERY MEASURE EL PASO ELECTRIC CO HAS THE HIGHEST ELECTRIC RATES IN THE STATE BUT THE AREA'S MILD CLIMATE KEEPS THE AVERAGE RESIDENTIAL ELECTRIC BILL LOW ONLY 60 DURING AUGUST COMPARED WITH 156 IN THE MUGGY GULF REGION SERVED BY HOUSTON LIGHTING & POWER MEANWHILE THE 26000 EAST TEXAS RESIDENTS WHO BUY POWER FROM THE UPSHUR RURAL ELECTRIC COOPERATIVE CAN BOAST THE LOWEST RESIDENTIAL RATES COMPANIES SERVED BY SOUTHWESTERN ELECTRIC POWER CO IN LONGVIEW HAVE THE LOWEST COMMERCIAL RATES AND BUSINESSES IN EAST TEXAS SERVED BY SOUTHWESTERN ELECTRIC SERVICE CO A UNIT OF TEXAS UTILITIES CO DALLAS HAVE THE LOWEST INDUSTRIAL RATES WHY THE DIFFERENCE EL PASO ELECTRIC WHICH SINCE JANUARY 1992 HAS OPERATED UNDER CHAPTER 13 BANKRUPTCY PROTECTION HAS SUFFERED FROM AN EXPENSIVE INVESTMENT IN THE PALO VERDE NUCLEARPOWER PLANT IN ARIZONA AND A RELATIVELY SMALL CUSTOMER BASE RESULTING IN HIGH PERCUSTOMER CHARGES EARLIER COMMISSIONS ALLOWED THE UTILITY TO INCLUDE LARGE PORTIONS OF THE PALO VERDE INVESTMENT IN ITS RATE BASE AS WELL AS APPROVING RATES OF RETURN EXCEEDING 13 MEANWHILE AMARILLOBASED SOUTHWESTERN PUBLIC SERVICE CO WHOSE RATES ARE AMONG THE LOWEST IN THE STATE IS CONSIDERED A TIGHTFISTED UTILITY THAT OPERATES FUELEFFICIENT COALBURNING PLANTS WITH THE LOWEST OPERATING COSTS IN THE COUNTRY HOW DOES THE PUC DECIDE WHAT RATES A UTILITY CAN CHARGE REGULATED UTILITIES CAN CHARGE RATES THAT ALLOW IT TO RECOVER ITS PRUDENT EXPENSES AND EARN A REASONABLE PROFIT BASED ON THE VALUE OF ITS ASSETS THE COMMISSION DETERMINES THOSE EXPENSES AND PROFIT NUMBERS AFTER HEARINGS CONSIDER THE TU ELECTRIC CASE THE COMPANY A UNIT OF TEXAS UTILITIES ASKED THE COMMISSION A YEAR AGO FOR PERMISSION TO RAISE RATES TO BRING IN AN ADDITIONAL 760 MILLION IN ANNUAL REVENUE A 153 INCREASE THE COMPANY NEEDED THE RATE INCREASE LARGELY TO BEGIN RECOVERING THE COSTS OF ITS 43 BILLION INVESTMENT IN UNIT 2 OF ITS COMANCHE PEAK NUCLEAR PLANT BUT EARLY IN THE PROCESS THE COMPANY AGREED TO EXCLUDE 333 MILLION IN COMANCHE PEAK CONSTRUCTION COSTS COMMISSIONERS ALSO RULED THAT THE COMPANY COULDN'T INCLUDE 17 MILLION IN CHARITABLE CONTRIBUTIONS AND 33 MILLION IN SOCALLED HYPOTHETICAL TAXES IN ITS EXPENSES AND IT REDUCED THE COMPANY'S REQUEST FOR A 125 RATE OF RETURN ON EQUITY TO 1135 WHAT ARE HYPOTHETICAL TAXES UNTIL 1992 THE COMMISSION ALLOWED A UTILITY TO ESTIMATE ITS FEDERAL INCOME TAXES BASED ON ITS STANDALONE REVENUE EVEN IF THE UTILITY WAS PART OF A HOLDING COMPANY WHOSE CONSOLIDATED TAX BILL WAS REDUCED BY DEDUCTIONS OR LOSSES INCURRED BY UNREGULATED SUBSIDIARIES THESE HYPOTHETICAL TAXES WERE CHARGED TO CONSUMERS EVEN THOUGH THEY WERE NEVER ACTUALLY PAID UTILITY EXECUTIVES INSIST SUCH CHARGES ARE LEGITIMATE ANY TAX SAVINGS AT THE PARENT COMPANY SHOULD FLOW TO THE BENEFIT OF ITS SHAREHOLDERS THEY SAY NOT TO RATEPAYERS THE COMMISSION DISAGREED ARGUING THAT UTILITIES CAN ONLY CHARGE THEIR CUSTOMERS FOR THE ACTUAL TAXES PAID THE ISSUE IS EXPECTED TO COME UP AGAIN DURING THE NEXT LEGISLATIVE SESSION WHO CAN ASK THE PUC TO REVIEW RATES TYPICALLY REQUESTS WILL COME EITHER FROM THE UTILITY WHICH WANTS TO RAISE THEM OR FROM CITIES CONSUMER GROUPS OR INDIVIDUAL CUSTOMERS WHO WANT TO LOWER THEM IN MAY 1992 A LAIDOFF EMPLOYEE OF HOUSTON LIGHTING & POWER FILED A COMPLAINT WITH THE COMMISSION ALLEGING THAT THE HOUSTON INDUSTRIES UNIT EARNS TOO MUCH HE ALSO SOUGHT TO REMOVE THE TROUBLED SOUTH TEXAS NUCLEAR PROJECT FROM HL&P'S RATE BASE ARGUING IT WAS AN IMPRUDENT INVESTMENT THE CASE IS PENDING BEFORE AN ADMINISTRATIVE LAW JUDGE WHO WILL RECOMMEND WHETHER THE COMMISSION SHOULD OPEN A FULLBLOWN RATE REVIEW OIL PRICES ARE WAY WAY DOWN SHOULDN'T MY RATES BE FALLING UTILITIES DON'T BURN MUCH OILNATURAL GAS IS GENERALLY CHEAPER CLEANER AND MORE READILY AVAILABLE BUT EVEN IF THEY DID IT WOULD HAVE ONLY A MODEST EFFECT ON RATES IN TEXAS CHANGES IN FUEL COSTS AREN'T PASSED ON TO CUSTOMERS AUTOMATICALLY A SAFEGUARD DESIGNED TO PROTECT CONSUMERS FROM SUDDEN SPIKES IN ENERGY COSTS AND BECAUSE UTILITIES PURCHASE FUEL ON LONGTERM CONTRACTS LOWER ENERGY COSTS MIGHT NOT SHOW UP IN LOWER UTILITY BILLS AT ALL IF TODAY'S LOWER OIL PRICES PROVE TO BE A TEMPORARY DIP DO MY BILLS PAY FOR ALL THOSE TV COMMERCIALS FROM UTILITIES CONSUMERS PAY FOR SOME BUT NOT ALL UTILITY ADVERTISING ADS DESIGNED TO BOOST A COMPANY'S IMAGE OR ENCOURAGE PEOPLE TO USE MORE ELECTRICITY ARE SPECIFICALLY EXCLUDED THE REST IS AT THE DISCRETION OF THE COMMISSION ELECTRIC RATES IN DECEMBER AT UTILITIES AROUND THE STATE SEE RELATED LETTER LETTERS TO THE EDITOR TWO VIEWS OF TEXAS' ELECTRICAL RATES WSJ JAN 26 1994 SEE RELATED LETTER LETTERS TO THE EDITOR FREDERICKSBURG FAN WSJ JAN 241994 9401120187 9401260133 YY94 MM01 YY94 MM02 9402030033 940128 LETTERS TO THE EDITOR I DID NOT ADMIT FALSE TESTIMONY' MICHAEL LEDEEN'S JAN 24 EDITORIALPAGE ARTICLE DAMNING NEWS IN WALSH REPORT ALLEGES ERRONEOUSLY THAT I ADMITTED FALSE TESTIMONY IN THE IRANCONTRA AFFAIR AND FURTHERMORE THAT IT APPEARS THAT MR SHULTZ SYSTEMATICALLY MISLED MR WALSH AND CONGRESS ABOUT THE EXTENT OF HIS KNOWLEDGE THROUGHOUT IRANCONTRA IN FACT I HAVE NEVER ADMITTED FALSE TESTIMONY AND MR WALSH HAS MADE NO SUCH CHARGE NOR DID I SYSTEMATICALLY MISLEAD MR WALSH AND CONGRESS I HAVE TESTIFIED TO THE FULLEST EXTENT OF MY KNOWLEDGE THROUGHOUT THE IRANCONTRA PROCEEDINGS IN REVIEWING MORE THAN 22000 PAGES OF NOTES TAKEN BY MY EXECUTIVE ASSISTANT CHARLES HILL THE INDEPENDENT COUNSEL'S OFFICE FOUND REFERENCES NOT ONLY CONFIRMING THE EVENTS TO WHICH I TESTIFIED BUT ALSO FOUND REFERENCES TO AN EPISODE OF A PLANNED ARMS SALE IN LATE MAY 1986 AND TO A SIMILAR BRIEF AND ABORTED EFFORT OF WHICH I WAS INFORMED ON FEB 11 1986 I DID NOT REFER TO THESE EPISODES IN MY TESTIMONY BECAUSE I HAD NOT REMEMBERED THEM AND MY EXECUTIVE ASSISTANT HAD NOT FOUND REFERENCES TO THEM IN HIS REVIEW OF HIS NOTES BEFORE I TESTIFIED THE INDEPENDENT COUNSEL ALSO FOUND A NOTE IN THE FILES OF DEFENSE SECRETARY CASPAR WEINBERGER REFERRING TO A CONVERSATION HE HAD WITH ME ON MAY 13 1986 IN WHICH MR WEINBERGER TOLD ABOUT ANOTHER ARMS SALE TO IRAN I DID NOT RECALL THIS CONVERSATION AND HAD NEVER SEEN MR WEINBERGER'S NOTE SO ITS CONTENTS WERE NOT REFLECTED IN MY TESTIMONY EITHER AS THE REPORT AND MY RESPONSE TO THE REPORT MAKE CLEAR I INFORMED THE INDEPENDENT COUNSEL IN A FEBRUARY 1992 INTERVIEW THAT IF I HAD BEEN GIVEN THOSE NOTES BEFORE MY 198687 TESTIMONY I WOULD HAVE INCLUDED REFERENCES TO THE INFORMATION THEY DESCRIBED IN MY STATEMENT TO THE COMMITTEE THESE INCIDENTS AND THE ADDITIONAL INFORMATION ABOUT THEM DO NOT CHANGE THE PICTURE I PRESENTED OF MY CONSISTENT OPPOSITION TO THE ARMSFORHOSTAGES EFFORTS MY CONSISTENT PUSH TO GET THE FACTS OUT TO THE PUBLIC FULLY AND AS SOON AS POSSIBLE AND THE FRAGMENTARY NATURE OF MY KNOWLEDGE OF WHAT THOSE ON THE NATIONAL SECURITY COUNCIL STAFF AND IN THE CIA WERE DOING ON THE ARMSFORHOSTAGES EFFORT THE REPORT ITSELF STATES THAT MY TESTIMONY WAS FULLY CONSISTENT WITH ALL THE NOTES I HAVE BEEN SHOWN IN THE PROCESS OF PREPARING FOR MY TESTIMONY THE REPORT ACKNOWLEDGES THAT THE CONTEMPORANEOUS NOTES TAKEN BY CHARLES HILL IN NOVEMBER AND DECEMBER 1986 AND IN 1987 INCLUDED EXTENSIVE NOTES ON PRECISELY HOW I AND MY STAFF PREPARED FOR MY 198687 TESTIMONY AND THAT NONE OF THE CONTEMPORANEOUS NOTES CREATED IN NOVEMBER AND DECEMBER 1986 SUGGEST THAT SHULTZ IN FACT REMEMBERED MORE OR DIFFERENT INFORMATION THAN THAT TO WHICH HE TESTIFIED PAGE 372 FURTHERMORE THE INDEPENDENT COUNSEL'S REPORT CONCEDES MY ADMIRABLE ROLE IN NOVEMBER 1986 BOTH IN STOPPING THE INITIATIVE AND IN URGING DISCLOSURE OF THE EVENTS OF 1985 AND 1986 PAGE 345 THERE ARE IMPORTANT LESSONS TO BE LEARNED FROM THE IRANCONTRA AFFAIR AND I HAVE TRIED TO SET THEM FORTH IN FOUR CHAPTERS OF MY MEMOIR TURMOIL AND TRIUMPH WHICH DESCRIBES FROM MY ANGLE OF VIEW HOW THIS COMPLICATED DRAMA UNFOLDED AND HOW DIFFICULT IT WAS TO STOP THE ARMSFORHOSTAGES EFFORT EVEN AFTER THE EXPLOSIVE REVELATION OF ARMS TO IRAN AND THE DIVERSION OF FUNDS TO THE CONTRAS MR SHULTZ A DISTINGUISHED FELLOW AT THE HOOVER INSTITUTION WAS SECRETARY OF STATE UNDER PRESIDENT REAGAN SEE RELATED LETTER LETTERS TO THE EDITOR SHULTZ'S TESTIMONY WSJ FEB 3 1994 9401280088 YY94 MM02 9402030032 940126 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO 11072 IN THE LATEST WEEK FROM A REVISED 11096 THE PRIOR WEEK CONTRIBUTING TO THE DECLINE INITIAL UNEMPLOYMENT CLAIMS ROSE SHARPLY AND TEXAS REFINERY OUTPUT FELL BUT THE YEAROVERYEAR CHANGE IN THE INDEX ROSE TO 225 FROM 224 REVERSING EIGHT STRAIGHT WEEKS OF FALLING FIGURES 9402030031 940124 DAMNING NEWS IN WALSH REPORT BY MICHAEL LEDEEN MOST OF THE WORKING PRESS HOPING AS THEY HAD FOR SEVEN YEARS THAT IRANCONTRA SPECIAL PROSECUTOR LAWRENCE WALSH WOULD SOMEHOW PULL A FLUFFY CRIME OUT OF HIS EMPTY HAT TREATED MR WALSH'S FINAL REPORT AS OLD NEWS AND IN ONE SENSE THEY WERE RIGHT AFTER MR WALSH'S ELECTIONEVE INDICTMENT OF CASPAR WEINBERGER THE STATUTE OF LIMITATIONS HAVING QUITE CLEARLY EXPIRED AFTER HIS TENDENTIOUS INTERIM REPORTS THAT SLANDERED HIS TARGETS WITHOUT ENABLING THEM TO REPLY AFTER HIS UTTERLY UNETHICAL PUBLIC STATEMENTS ABOUT THE GUILT OF ONE OR ANOTHER TARGET THE SPECIAL PROSECUTOR EXPIRED WITH A LONG SIGH THERE WAS NO EVIDENCE TO JUSTIFY ANY FURTHER PROSECUTIONS HE EVEN HAD SOME KIND WORDS FOR RONALD REAGAN HE MEANT WELL HE THOUGHT HE WAS ADVANCING THE NATIONAL INTEREST YET THERE IS NEWS IN THE FINAL REPORT FOR STARTERS THERE IS A DRASTICALLY REVISED PORTRAIT OF SECRETARY OF STATE GEORGE SHULTZ PREVIOUSLY ENTHRONED AS THE LONE TELLER OF TRUTH OF THE REAGAN CABINET IT APPEARS THAT MR SHULTZ SYSTEMATICALLY MISLED MR WALSH AND CONGRESS ABOUT THE EXTENT OF HIS KNOWLEDGE THROUGHOUT IRANCONTRA THE FINAL REPORT CONTAINS DOZENS OF EXCERPTS FROM NOTES AND MEMORANDUMS PREPARED BY MR SHULTZ'S TWO TOP ASSISTANTS THAT SHOW THAT MANY STATE DEPARTMENT OFFICIALS WERE VERY WELL INFORMED INDEED ABOUT MATTERS THAT MR SHULTZ HAD SWORN THE DEPARTMENT IN GENERAL AND HE IN PARTICULAR HAD BEEN KEPT IN THE DARK ABOUT SHULTZ ULTIMATELY ACKNOWLEDGED THAT HIS TESTIMONY HAD BEEN INCORRECT THE REPORT SAYS BUT MR WALSH DECIDED NOT TO PROSECUTE THE FORMER SECRETARY OF STATE BECAUSE HE COULDN'T PROVE BEYOND A REASONABLE DOUBT THAT HIS TESTIMONY WAS WILLFULLY FALSE YET HE DID PROSECUTE MR WEINBERGER FOR ALLEGEDLY DOING PRECISELY WHAT MR SHULTZ HAD DONE AND THE EVIDENCE PRESENTED AGAINST MR SHULTZ IS IF ANYTHING MORE COPIOUS THAN THAT AGAINST MR WEINBERGER THE CHOICE WAS PROBABLY DICTATED BY PERSONAL RAPPORT AND POLITICAL CALCULATION MR SHULTZ WAS THE DARLING OF CAPITOL HILL WHILE MR WEINBERGER WAS A PRICKLIER PERSONALITY MR SHULTZ WAS COOPERATIVE WITH MR WALSH AND ADMITTED FALSE TESTIMONY WHILE MR WEINBERGER DEFIANTLY HELD HIS GROUND A SECOND BIT OF NEWS IS A RETURN TO ONE OF MR WALSH'S ORIGINAL THEORIES ABOUT IRANCONTRA THAT AMONG MR SHULTZ MR WEINBERGER DONALD REGAN JOHN POINDEXTER WILLIAM CASEY ED MEESE AND ROBERT MCFARLANE THERE WAS A GREAT CONSPIRACY TO PREVENT THE SPECIAL PROSECUTOR AND THE AMERICAN PEOPLE FROM LEARNING WHAT HAD REALLY HAPPENED IT IS A HILARIOUS NOTION EVIDENTLY WRITTEN BY MR WALSH'S LEFT HAND FOR THE RIGHT HAND HAS GIVEN US COPIOUS EVIDENCE THAT THE WOULDBE CONSPIRATORSAT THE VERY MOMENT MR WALSH SAYS THEY WERE PLOTTING WERE ACTUALLY MAKING FEVERISH EFFORTS TO GET EACH OTHER FIRED IT REQUIRES A HYPERACTIVE IMAGINATION TO BELIEVE THAT SUCH ANTAGONISMS COULD BE SUBLIMATED IN THE CREATION OF AN IRANCONTRA COVERUP AND THEN SUSTAINED FOR SEVEN YEARS THE THIRD HEADLINE CONCERNS GEORGE BUSH OR RATHER MR WALSH'S NEWFOUND OBSESSION WITH HIM AFTER YEARS OF SHADOWING MR REAGAN AND HINTING DARKLY THAT HE'D EVENTUALLY BE HARPOONED MR WALSH SUDDENLY GAVE UP THE CHASE AND SHIFTED TARGETS WHATEVER THE EXPLANATION THE SHIFT BESPEAKS A CERTAIN CAPRICIOUSNESS IN MR WALSH'S DECISIONMAKING PROCESS RATHER THAN THE RELENTLESS INVESTIGATORY RIGOR HE WOULD HAVE US BELIEVE HE EMPLOYED BUT MOST OF THE NEWS IS ABOUT MR WALSH AND HIS TEAM APPENDED TO MR WALSH'S ACCOUNT ARE MORE THAN 1000 PAGES OF RESPONSES FROM PERSONS NAMED IN THE REPORT OR GIVEN THE NATURE OF WASHINGTON FROM THEIR LAWYERS A VICTIM'S GUIDE TO HOW WE SUBVERTED OUR OWN LEGAL SYSTEM MUCH OF THIS IS BRANDNEW FOR IT COMES FROM THE INDIANS NOT FROM THE CHIEFS FROM SECRETARIES AND ASSISTANTS AND OTHER MIDLEVEL CIVIL SERVANTS NO ONE IS TOO SMALL TO BECOME A TARGET OF MR WALSH'S CRUELTY HE ACCUSES THEM ALL OF CRIME OR SIN WHILE STRESSING HE DOES NOT HAVE ENOUGH TO WARRANT INDICTMENT OR ENSURE CONVICTION HE PUTS HIS BLACK SPOT ON THEM THEIR RESPONSES CONSTITUTE A BLOODCURDLING CATALOG OF MR WALSH'S VICIOUSNESS UNETHICAL BEHAVIOR AND ASTOUNDING INCOMPETENCE FOR EXAMPLE BOTH OF MR WEINBERGER'S SECRETARIES PENTAGON PROFESSIONALS FOR MORE THAN 20 YEARS WERE ACCUSED OF LYING BOTH DENIED IT ONE OF THEM THELMA STUBBS SMITH WAS HAULED IN FRONT OF A GRAND JURY WHERE ONE OF MR WALSH'S MEN ACCUSED HER OF LYING SHOCKED SHE DENIED IT AND HER LAWYER DEMANDED A CORRECTION NONE WAS MADE LATER MR WALSH'S LAWYER ASKED TO INTERVIEW HER WITHOUT HER LAWYER BEING PRESENT THE REQUEST WAS CATEGORICALLY DENIED THREE DAYS LATER MR WALSH'S LAWYER SHOWED UP AT HER DOOR AT 8 ASKING TO TALK TO HER HER HUSBAND SENT THE ROGUE AWAY MEANWHILE THE OTHER SECRETARY KAY LEISZ WAS INFORMED THAT SHE WAS NOW A SUBJECT OF MR WALSH'S INVESTIGATION THE REPORT ACCUSES HER OF FALSE TESTIMONY HER LAWYER'S RESPONSE SHOWS THE OPPOSITE AND SAYS IT APPEARS THAT THE ONLY RATIONALE THAT MR WALSH'S OFFICE MIGHT HAVE IS THAT SHE MAY NOT HAVE SAID WHAT THEY WANTED TO HEAR THE SAME KINDS OF VENGEFUL ACTIONS WERE TAKEN AGAINST SAMUEL WATSON ONE OF MR BUSH'S ASSISTANTS MR WATSON WAS ACCUSED OF PRONOUNCING THE MAGIC WORDS CONTRA RESUPPLY AS A POSSIBLE SUBJECT FOR DISCUSSION AT A MEETING IN THE VICE PRESIDENT'S OFFICE HE DIDN'T REMEMBER IT AND DENIED ANY KNOWLEDGE OF THE SUPPLY OF MILITARY EQUIPMENT TO THE CONTRAS MR WALSH SOMEHOW CONVINCED THAT MR WATSON WAS COVERING UP FOR MR BUSH PROCLAIMS HIM A LIAR MR WATSON'S LAWYER FORMER SPECIAL PROSECUTOR JACOB STEIN OBSERVED THAT IT WAS NOT FOR ILLEGAL ACTS THEMSELVES THAT THE SPECIAL PROSECUTOR SOUGHT MR WATSON BUT RATHER FOR HIS INABILITY YEARS LATER TO REMEMBER EVENTS AS THE SPECIAL PROSECUTOR WISHED HIM TO MR STEIN DELICATELY OBSERVES THAT SUCH BEHAVIOR VIOLATES THE FAIRNESS OF OUR AMERICAN SENSE OF RIGHT AND WRONG THE ENTIRE CASE AGAINST CIA STATION CHIEF JOE FERNANDEZ WAS A JOKE MR WALSH BUNGLED THE HANDLING OF CLASSIFIED INFORMATION SO BADLY THAT NOT EVEN AN APPEAL FROM THE JUSTICE DEPARTMENT TO THE COURT COULD SAVE HIM TYPICALLY MR WALSH THANKED JUSTICE BY BLAMING THEM FOR THE SCREWUP HIS KEY WITNESS TO THE CHARGE OF FALSE TESTIMONY AGAINST MR FERNANDEZ HAD ALREADY TOLD THE OFFICE OF THE INDEPENDENT COUNSEL THAT HIS OWN MEMORY WAS TAINTED BY THE PUBLIC TESTIMONY OF OTHERS THEREBY MAKING HIM A USELESS SOURCE MR WALSH'S LAWYERS ATTEMPTED TO BROWBEAT HIM INTO TESTIFYING THAT THERE WAS NO TAINT AND LAWYERS' REPLIES SHOW THAT SEVERAL OF THE STATEMENTS MR WALSH CHARACTERIZED AS FALSE WERE IN FACT TRUE STRIKINGLY GIVEN MR WALSH'S PROPENSITY FOR ACCUSING FOLKS OF WITHHOLDING INFORMATION FROM HIM THERE ARE SEVERAL CASES WHERE MR WALSH WAS CHASTISED BY FEDERAL JUDGES FOR FAILING TO PROVIDE THE DEFENSE WITH EXCULPATORY MATERIAL IN THE WEINBERGER AND FERNANDEZ CASES DEFENSE ATTORNEYS HAD TO USE PRETTY ROUGH LANGUAGE TO GET MR WALSH'S TEAM TO COMPLY AND IN ONE OF THOSE ODD MOMENTS THAT MAKE IRANCONTRA SUCH AN UNLIKELY TALE IT WAS ONLY WHEN OLIVER NORTH'S LAWYERS INSISTED ON IT THAT MR WALSH REALIZED HE HAD DOZENS OF CARTONS OF MR NORTH'S FILES IN HIS POSSESSION SUCH TESTIMONY AND THERE ARE DOZENS OF EXAMPLES SHOWS MR WALSH STOMPING ON HIS VICTIMS' BASIC RIGHTS INDEED PUBLISHING THE REPORT IS ITSELF PROFOUNDLY UNFAIR IF NOT ILLEGAL FROM TIME IMMEMORIAL IT HAS BEEN CONSIDERED UNETHICAL FOR PROSECUTORS TO MAKE ALLEGATIONS AGAINST PERSONS THEY DO NOT INDICT YET THE FINAL REPORT CONTAINS HUNDREDS PERHAPS THOUSANDS OF SUCH UNPROVEN ALLEGATIONS EVEN INCLUDING EXCERPTS OF GRANDJURY TESTIMONY GRANDJURY PROCEEDINGS HAVE ALWAYS BEEN SECRET IN PART TO PROTECT PEOPLE THE GRAND JURY DECIDES NOT TO INDICT MR WALSH BIZARRELY PROCLAIMED THAT SUCH REQUIREMENTS DO NOT APPLY TO SPECIAL PROSECUTORS AND STUCK THE TESTIMONY IN HIS REPORT THE SPECIAL COURT THAT THEORETICALLY OVERSEES THE WORK OF SPECIAL PROSECUTORS REJECTED HIS THEORY BUT PERMITTED THE REPORT TO APPEAR ANYWAY ON THE FEEBLE GROUNDS THAT VERY LITTLE OF THE MATERIAL WAS REALLY SECRET ANYWAY AND A LOT OF PEOPLE ESPECIALLY JOURNALISTS WOULD BE ANGRY IF THE COURT DIDN'T PUBLISH IT IT WAS A COWARDLY THING FOR THE COURT TO DO AND THE THREE JUDGES OBVIOUSLY KNEW IT FOR THEY TOOK PAINS TO INDICATE THEIR SYMPATHY FOR THOSE UNINDICTED PEOPLE BESMIRCHED BY THE REPORT HAD THEY BEEN MADE OF STERNER STUFF THE JUDGES WOULD HAVE INSTRUCTED MR WALSH TO DELETE ALL ACCUSATIONS AGAINST UNINDICTED PEOPLE AND TO REMOVE ALL REFERENCES TO GRANDJURY TESTIMONY SUCH A DOCUMENT WOULD HAVE FULFILLED MR WALSH'S OBLIGATION TO SUBMIT A FINAL REPORT AND ALSO MAINTAINED THE QUAINT NOTION THAT AMERICANS ARE HELD INNOCENT UNLESS PROVED GUILTY WE LEARNED SOME YEARS AGO THAT MR WALSH WAS CONTEMPTUOUS OF SUCH ARCHAIC LEGAL NOTIONS IT WAS BAD NEWS THAT THE SPECIAL COURT WOULDN'T DEFEND THEM EITHER MR LEDEEN A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE WAS A CONSULTANT TO NATIONAL SECURITY ADVISER ROBERT MCFARLANE IN 1985 HE WAS THE FIRST AMERICAN OFFICIAL TO MAKE CONTACT WITH ISRAELIS AND IRANIANS IN WHAT LATER BECAME THE IRAN INITIATIVE AND WAS CLEARED OF ALL ALLEGATIONS OF WRONGDOING IN THE FINAL IRANCONTRA REPORT SEE RELATED LETTER LETTERS TO THE EDITOR I DID NOT ADMIT FALSE TESTIMONY' WSJ JAN 28 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SHULTZ'S TESTIMONY WSJ FEB 3 1994 9401240045 YY94 MM02 9402030030 940120 INMAN'S FALSE CRY OF MCCARTHYISM BY DOROTHY RABINOWITZ OF THE MANY RESPONSES TO RETIRED ADM BOBBY RAY INMAN'S ANNOUNCED REASON FOR DECLINING THE NOMINATION FOR THE POST OF DEFENSE SECRETARY NAMELY THE EXISTENCE OF A MCCARTHYITE CONSPIRACY AGAINST HIM SENATE MINORITY LEADER ROBERT DOLE'S STANDS OUT FOR ITS SUCCINCTNESS I THINK THE SENATOR MUSED HE OUGHT TO GO HOME AND GET A GOOD NIGHT'S SLEEP A PRIME TARGET OF ADM INMAN'S ACCUSATIONS ALONG WITH COLUMNIST WILLIAM SAFIRE SEN DOLE HAD SOME REASON FOR DISPENSING THIS WASPISH IF ALSO SAGE BIT OF ADVICE UNFORTUNATELY THE PROPENSITY NOW RAMPANT FOR REPRESENTING ONESELF AS A VICTIM OF A NEW MCCARTHYISM ISN'T LIKELY TO BE CURED BY ANYTHING AS SIMPLE AS A GOOD NIGHT'S SLEEP IF ADM INMAN THINKS HE IS THE VICTIM OF A MODERN DAY MCCARTHYISM BECAUSE OF SOME PRESS CRITICISM IT MIGHT BE INSTRUCTIVE TO KNOW WHAT HE THINKS HAPPENED TO ROBERT BORK AND CLARENCE THOMAS STILL ONE REMEDY DOES EXIST NAMELY A WILLINGNESS TO REMEMBER WHAT THE REAL MCCARTHYISM WAS ADM INMAN IS AS HE NOTES HIMSELF OLD ENOUGH TO REMEMBER IT ONLY REQUIRED BEING OLD ENOUGH TO READ A PAPER DURING THE MCCARTHY ERA TO REMEMBER WHAT MCCARTHYISM WAS FOREVER AND THOSE WHO HAVE THIS MEMORY AREN'T INCLINED TO THROW ACCUSATIONS OF MCCARTHYISM AROUND LIGHTLY NOR IS IT EASY FOR MANY OF THEM TO CHOOSE WHICH EVENT BEST RECALLS THE ERA AND THE ISM THE ATTACK ON GEORGE C MARSHALL ADM INMAN MIGHT WANT TO STUDY THAT ONE FOR A REFRESHER ON WHAT MCCARTHYISM ACTUALLY WAS AND WAS NOT IT WAS NOT ABOUT FOR EXAMPLE CRITICISM BY COLUMNISTS OR SUGGESTIONS THAT NOMINEES FOR HIGH OFFICE MIGHT FACE SOME GRILLING BEFORE BEING CONFIRMED MCCARTHYISM'S FOCUS WAS THE EXPLOITATION OF PUBLIC FEARS IN A DANGEROUS POSTWAR WORLD IN WHICH THE SOVIET THREAT AND ATOMIC WARFARE LOOMED LARGE ON JUNE 14 1951 THE SENATOR FROM WISCONSIN WENT BEFORE THE SENATE TO DELIVER WORD THAT SECRETARY OF STATE MARSHALL HAD AS A MILITARY LEADER IN WORLD WAR II STUBBORNLY AND SKILLFULLY ALWAYS AND INVARIABLY SERVED THE WORLD POLICY OF THE KREMLIN AND HAD ALONG WITH DEAN ACHESON LATER BROUGHT ABOUT STEP BY STEP BY WILL AND INTENTION A CONSPIRACY ON A SCALE SO IMMENSE AS TO DWARF ANY PREVIOUS SUCH VENTURE IN THE HISTORY OF MAN THE OBJECT OF MARSHALL'S CONSPIRACY THE SENATOR WENT ON TO EXPLAIN WAS THAT THE US WOULD FINALLY FALL VICTIM TO SOVIET INTRIGUE FROM WITHIN AND RUSSIAN MILITARY MIGHT FROM WITHOUT SEN MCCARTHY'S DEVOTED ADHERENT CANDY MANUFACTURER AND JOHN BIRCHITE ROBERT H WELCH JR WOULD SOME YEARS LATER ADD DWIGHT EISENHOWER TO THE MIX OF SOLDIERSTATESMAN TRAITORS IN MR WELCH'S VIEW PROCLAIMED IN THE POLITICIAN GEN EISENHOWER WAS THROUGHOUT THE WAR AND DURING HIS PRESIDENCY A DEDICATED CONSCIOUS AGENCY OF THE COMMUNIST CONSPIRACY HE HAD COME TO THIS CONCLUSION MR WELCH ASSURED HIS AUDIENCE THROUGH AN ACCUMULATION OF DETAILED EVIDENCE SO EXTENSIVE AND SO PALPABLE THAT IT SEEMS TO PUT THIS CONVICTION BEYOND ANY REASONABLE DOUBT IT'S HARDLY NECESSARY TO ADD THAT MCCARTHYISM AND ITS ADHERENTS ON THE CONGRESSIONAL COMMITTEES INVESTIGATING LOYALTY TOOK THEIR GREATEST TOLL ON CAREERS AND IN SOME CASES LIVES OF LESS RENOWNED CITIZENS THAN THOSE CITED ABOVE THE STORIES OF WHAT HAPPENED TO THE HAPLESS PERFORMERS WHOSE NAMES APPEARED IN SAY RED CHANNELS OR THE TEACHER WHO HAD ONCE GONE TO A MEETING OF SOME ORGANIZATION LATER REVEALED AS A COMMUNIST FRONT ARE TOO WELL KNOWN TO REQUIRE REPEATING STILL THEY HAVE A WAY OF RISING UP IN MEMORY WHENEVER SOMEBODY INVOKES FRIVOLOUS CLAIMS OF MCCARTHYISM TODAY THERE IS SUCH A THING AS A MODERN DAY MCCARTHYISM OF COURSE AND THOSE OF US WHO REMEMBER THE REAL THING KNOW THE NEW KIND WHEN WE SEE IT MCCARTHYISM'S REINCARNATION IS FOR INSTANCE ALIVE AND WELL ON AMERICAN COLLEGE CAMPUSES PLACES WHERE FOR INSTANCE VIOLATION OF THE PREVAILING POLITICAL RELIGIONS CAN MEAN FOR AN ACADEMIC THE END OF ANY HOPE OF PROFESSIONAL ADVANCEMENT IN THE ERA OF THE BLACKLIST IN THE 1950S LOYALTY SPECIALISTS EXAMINED HOLLYWOOD SCRIPTS FOR WORDS AND IDEAS THAT CONSTITUTED PROOF OF SUBVERSION ON CAMPUSES TODAY WORDS AND IDEAS UTTERED IN CLASSROOMS UNDERGO SIMILAR SCRUTINY FOR SIGNS OF SEXUAL OR RACIAL INSULT THE GREAT DIFFERENCE BETWEEN THE CAMPUSES DURING THE 1950S AND TODAY IS THAT DURING THE MCCARTHY PERIOD THE COLLEGES WERE CENTERS OF RESISTANCE TO THE KNOWNOTHINGS TODAY THEY ARE THE VITAL CENTERS OF A CULTURAL POLICE STATE MORE PRIMITIVE EVEN THAN THE OLD MCCARTHYISM PERHAPS ADM INMAN HAS TAKEN AWAY THE WRONG LESSONS FROM HIS OWN EXPERIENCE OF THE MCCARTHY ERA THERE IS INDEED A SLIGHT TOUCH OF THE OLD MCCARTHY FLAIR ITSELF IN THE WAY THE ADMIRAL CHARACTERIZES HIS CRITICS IN THE FACILITY WITH WHICH THOUGHTS OF CONSPIRACY REAR THEIR HEADS IN THE WAY WITNESSES TO THE PLOTS AGAINST HIM GO UNNAMED IT ISN'T TOO LATE FOR THE ADMIRAL AND THOSE SIMILARLY DISPOSED TO GO BACK AND GET A GRIP ON THE FACTS OF MCCARTHYISM THE REAL THING MS RABINOWITZ IS A WALL STREET JOURNAL EDITORIAL WRITER SEE RELATED LETTER LETTERS TO THE EDITOR A BULLY AND A COWARD WSJ FEB 3 1994 9401200087 YY94 MM02 9402030028 940113 LETTERS TO THE EDITOR NEXTDOOR NEIGHBORS TO NOWFAMOUS SNAILS IN RESPONSE TO YOUR DEC 27 EDITORIAL A SNAIL RETREAT BEST FRIENDS ANIMAL SANCTUARY IS THE WILDLIFE REFUGE TO WHICH YOU REFER IT'S THE LARGEST NOKILL ANIMAL SANCTUARY FOR DOGS AND CATS IN THE COUNTRY AND IT'S ADJACENT TO BRANDT CHILD'S PROPERTY FEDERAL OFFICIALS TOLD MR CHILD HE WOULD BE FINED 50000 PER SNAIL IF THE GEESE SOMEONE ABANDONED ON HIS PROPERTY ATE ANY OF THE ENDANGERED KANAB AMBERSNAILS IN THE LAKES ON HIS LAND YES IT'S TRUE THAT MR CHILD WILL NOT BE ALLOWED TO TURN HIS SMALL PIECE OF THIS DELICATE LAND INTO ANOTHER GOLF COURSE BESIDES THERE'S ALREADY A GOLF COURSE IN THE TINY LOCAL TOWN AND MOST TOURISTS DON'T COME HERE TO PLAY GOLF MOSTLY THEY'RE ECOTOURISTS AND ANIMAL LOVERS WHO COME TO VISIT THE INSPIRING WONDERS OF THE GRAND CANYON AND THE GOLDEN CIRCLE OF NATIONAL PARKS SURROUNDING ANGEL CANYON WHEN WE HEARD ABOUT THE AMBERSNAIL PROBLEM WE OFFERED TO RELOCATE AS MANY AS POSSIBLE OF THE CRITTERS TO THE SANCTUARY HERE WHERE THERE'S A GOOD SNAIL HABITAT BUT THE PUBLICITY MR CHILD HAS ENJOYED IS PROMISING TO MAKE HIS PIECE OF THE LOCAL ECOSYSTEM A MORE PROFITABLE ENTERPRISE THAN A GOLF COURSE COULD EVER HAVE DONE THIS SUMMER IT WILL BE ANOTHER STOPPING PLACE FOR NATURE LOVERS ON VACATION SEE RELATED LETTER LETTERS TO THE EDITOR IS ENDANGERED' SNAIL REALLY AN ILLEGAL ALIEN WSJ FEB 3 1994 9401130073 YY94 MM02 9402030026 940112 TEXAS JOURNAL PANKAU PI LESS THAN MEETS THE EYE HE MAY EXAGGERATE DEEDS LIKE IRS DUTY AND ROLE IN PANAMA BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON HOUSTON PRIVATE EYE EDMUND J PANKAU CLAIMS TO HAVE PULLED OFF EXPLOITS THAT WOULD TURN SAM SPADE HIMSELF GREEN WITH ENVY IN THE COURSE OF HIS TWODECADE CAREER THE 48YEAROLD INVESTIGATOR ACCORDING TO PUBLISHED REPORTS HAS HELPED NAB A NOTORIOUS GANG OF JEWEL THIEVES VIDEOTAPED DONNA RICE AND FORMER US SEN GARY HART TOGETHER AND RUSHED INTO A BURNING BUILDING TO SNATCH A COMPUTER PRINTOUT OF THE FINANCIAL HOLDINGS OF DEPOSED PANAMANIAN LEADER MANUEL NORIEGA FROM THESE AND OTHER TALES MR PANKAU HAS GAINED A COLORFUL NOTORIETY PARTICULARLY IN TEXAS NEARLY ALL MAJOR NEWSPAPERS IN THE US INCLUDING THIS ONE HAVE QUOTED HIM HE APPEARS OFTEN ON TELEVISION NEWSMAGAZINE SHOWS PHIL DONAHUE LARRY KING AND JOAN RIVERS HAVE ALL INTERVIEWED HIM THE HEADLINE OF A 1992 NEW YORK TIMES PAGEONE ARTICLE BILLED HIM AS A NEW BREED OF SAM SPADE THAT STORY WAS FOLLOWED BY A BOOK DEAL WITH MACMILLAN INC FOR HIS AUTOBIOGRAPHY BUT WHETHER MR PANKAU'S LARGERTHANLIFE IMAGE IS JUSTIFIED IS AN OPEN QUESTION WRITER ROBERT PACK WHO SIGNED TO WORK ON THE AUTOBIOGRAPHY SPENT SIX MONTHS RESEARCHING HIS SUBJECT'S CLAIMS AND HE BEGAN TO WORRY THAT THE DETECTIVE WHO BUILT HIS CAREER ON SNIFFING OUT UNTRUTHS MIGHT BE TELLING A FEW HIMSELF I DO NOT BELIEVE IT IS POSSIBLE TO PRODUCE A TRUE LIBELFREE BOOK ABOUT YOUR CAREER MR PACK WROTE MR PANKAU LAST APRIL IN AN ACCOMPANYING 15PAGE STATEMENT WHICH BECAME PUBLIC LAST WEEK AS PART OF A LAWSUIT MR PACK ARGUED THAT THE SLEUTH COULDN'T DOCUMENT CLAIMS HE HAD MADE BEFORE SIGNING THE BOOK DEAL MR PACK SAYS MR PANKAU HAD PROMISED BUT NEVER DELIVERED NEW INFORMATION ON THE IRANCONTRA SCANDAL AND DETAILS OF HIS INVESTIGATIONS OF GIGANTIC FIGURES IN WHITECOLLAR CRIME PEOPLE HE CALLED UNKNOWN KEATINGS ACCORDING TO MR PACK'S STATEMENT MR PANKAU'S PROMISES MAY CONSTITUTE FRAUD ON HIM AND MACMILLAN THE PUBLISHER DECLINES TO COMMENT THE DOCUMENT BECAME PUBLIC WHEN MR PANKAU FILED A DEFAMATION SUIT AGAINST MR PACK IN STATE DISTRICT COURT IN HOUSTON LAST MONTH THE SUIT SEEKING MORE THAN 5 MILLION IN DAMAGES CHARGES THAT MR PACK IS SPREADING VICIOUS AND UNSUBSTANTIATED STATEMENTS ABOUT ED PANKAU'S VERACITY MORAL CHARACTER AND HONOR MR PANKAU'S ATTORNEYS IN ATTACHING MR PACK'S STATEMENT AS EVIDENCE FILED A MOTION TO SEAL IT FROM PUBLIC VIEW BUT DISTRICT COURT JUDGE MICHAEL SCHNEIDER INITIALLY LEFT IT OPEN PENDING A HEARING ON THE MOTION AT MR PACK'S REQUEST THE CASE WAS TRANSFERRED TO FEDERAL DISTRICT COURT IN HOUSTON FRIDAY AND A MOTION BY MR PANKAU'S LAWYERS TO SEAL PARTS OF THE FILES IS NOW PENDING THERE MR PACK WHO AMONG OTHER THINGS COLLABORATED WITH FORMER WHITE HOUSE SPOKESMAN LARRY SPEAKES ON A BESTSELLER ABOUT THE REAGAN ADMINISTRATION DECLINES TO COMMENT ON MR PANKAU HE IS UNDER AN ORDER PROHIBITING HIM FROM COMMENTING ACCORDING TO THE LAWSUIT AS PART OF A CASE HE HAS PENDING AGAINST MR PANKAU WITH THE AMERICAN ARBITRATION ASSOCIATION THE SUIT DOESN'T SPECIFY WHAT THE ARBITRATION CASE IS ABOUT MR PANKAU WHO HEADS HIS OWN HOUSTONBASED FIRM INTERTECT INC HAS DECLINED TO DISCUSS THE LAWSUIT AND THE ALLEGATIONS IN MR PACK'S STATEMENT WITH THE WALL STREET JOURNAL ASIDE FROM ONE BRIEF PHONE CONVERSATION ASKED FOR HIS VERSION OF THE HIGHLIGHTS OF HIS CAREER MR PANKAU MADE AN APPOINTMENT WITH A REPORTER BUT HIS OFFICE CANCELED IT SAYING HE WAS DETAINED IN DALLAS THE NEXT DAY MR PANKAU AGREED TO CALL A REPORTER AT A SPECIFIED TIME BUT DIDN'T HIS WIFE SAID HE WAS CALLED AWAY ON AN EMERGENCY SOME FORMER CLIENTS DEFEND MR PANKAU AS A COMPETENT INVESTIGATOR MONTY E PENDLETON A HOUSTONBASED CONSULTANT SAYS MR PANKAU TRACKED DOWN REALESTATE HOLDINGS OF ONE OF HIS DEBTORS BY FORAGING THROUGH PUBLIC RECORDS IN ANOTHER STATE HE'S GOT A BIG EGO AND LIKES TO BRAG MR PENDLETON SAYS BUT HE ALSO DELIVERS WELLKNOWN AS A FINANCIAL INVESTIGATOR MR PANKAU HAS WORKED FOR CLIENTS RANGING FROM BANKS TO THE FEDERAL GOVERNMENT SINCE 1989 HE HAS DONE 32 JOBS FOR THE RESOLUTION TRUST CORP MOSTLY SEARCHES OF PUBLIC RECORDS AND COLLECTED ABOUT 150000 IN FEES SAYS AGENCY SPOKESMAN STEPHEN KATSANOS HE WAS AN AVERAGE PERFORMER MR KATSANOS SAYS MR PANKAU HAS LONG CLAIMED TO BE WELL ABOVE AVERAGE AS A DETECTIVE BUT HE HASN'T CHAMPIONED HIS VERACITY IN HIS 1992 BOOK CHECK IT OUT A HOWTO BOOK ON FINDING OUT ABOUT THE PEOPLE IN YOUR LIFE HE ADVISES WOULDBE PRIVATE EYES NOT TO BE SHY ABOUT TELLING A FIB OR TWO THE TRUE SECRET OF THE SUPERSLEUTHS IS OFTEN A GLIBTONGUED SMOOTHTALKING LITTLE PRETEXT A WHITE LIE THAT OFTEN FALLS INTO THE GRAY AREA BUT NOT ILLEGAL REALM OF THE LAW ONE OF MR PACK'S BIGGEST COMPLAINTS ACCORDING TO HIS STATEMENT IS THAT IN THE COURSE OF HIS INTERVIEWS WITH MR PANKAU SOME OF THEM TAPED THE DETECTIVE CONTRADICTED HIMSELF REPEATEDLY SOME PUBLICATIONS INCLUDING BUSINESS WEEK HAVE SAID MR PANKAU WAS A GREEN BERET IN VIETNAM ONE ARTICLE IN A 1992 ISSUE OF FLORIDA STATE MAGAZINE SAID HE WAS WOUNDED IN COMBAT BUT MR PANKAU TOLD HIS BIOGRAPHER HE WAS NEVER IN VIETNAM ACCORDING TO MR PACK'S STATEMENT WHEN PRESSED TO EXPLAIN HE ALLEGEDLY GAVE MR PACK SEVERAL STORIES ONCE SAYING HE HAD FLOWN OVER VIETNAM AND LANDED BRIEFLY NEVER LEAVING THE PLANE AND ANOTHER TIME CLAIMING HE HAD BEEN IN VIETNAM FOR A COUPLE OF DAYS BUT WASN'T ALLOWED TO TALK ABOUT IT ARMY FILES FROM THE GOVERNMENT'S NATIONAL PERSONNEL RECORDS CENTER IN ST LOUIS SHOW MR PANKAU SPENT TWO WEEKS IN OKINAWA BUT OTHERWISE SERVED ENTIRELY IN THE US HIS FILES DON'T INDICATE THAT HE WAS A GREEN BERET OR THAT HE WAS WOUNDED INFORMATION THAT WOULD NORMALLY BE INCLUDED ON MILITARY RECORDS SAYS CHERYL BETTS A SPOKESWOMAN FOR THE CENTER MR PANKAU HAS BUILT HIS IMAGE PARTLY ON HIS EXPERIENCE WITH THE INTERNAL REVENUE SERVICE THE BIOGRAPHICAL SKETCH IN CHECK IT OUT CITES HIS 20 YEARS OF INVESTIGATIVE EXPERIENCE BOTH AS A SPECIAL AGENT FOR THE IRS AND AS A PRIVATE EYE THE BOOK ALSO RECOUNTS HOW MR PANKAU'S BOSS AT THE IRS TRACKED A NOTORIOUS GANG OF JEWELRY THIEVES BY SCREENING SUBSCRIPTION LISTS OF JEWELRY MAGAZINES FOR PEOPLE WITH CRIMINAL RECORDS THE INFAMOUS MURPH THE SURF' AND HIS GANG NEVER DID FIGURE OUT THAT WE NAILED THEM BY FINDING THEIR ADDRESS ON A JEWELRY MAGAZINE SUBSCRIPTION LIST MR PANKAU WRITES IN CHECK IT OUT BUT WHEN MR PACK TOLD MR PANKAU THAT MURPH THE SURF WAS JAILED BEFORE MR PANKAU BEGAN WORKING FOR THE IRS THE PRIVATE EYE SAID HE HAD FORGOTTEN THAT AND CHANGED HIS STORY TO SAY THE UNIT HAD INVESTIGATED OTHER MEMBERS OF THE GANG ACCORDING TO MR PACK'S STATEMENT JOHN MCRAE A SUPERVISOR AT THE MIAMI IRS UNIT IN THE EARLY 1970S WHEN MR PANKAU WAS THERE DISPUTES EVEN THE SCALEDDOWN VERSION I DON'T REMEMBER ANYTHING ABOUT MURPH THE SURF' MR MCRAE SAYS IF WE HAD A SUCCESSFUL INVESTIGATION ON HIM I WOULD REMEMBER MOREOVER MR MCRAE SAYS MR PANKAU WAS PRIMARILY A TRAINEE NOT A FULLFLEDGED SPECIAL AGENT AND STAYED LESS THAN A YEAR MR MCRAE SAYS HE REMEMBERS MR PANKAU ONLY BECAUSE HE FAILED THE BACKGROUND CHECK THAT'S VERY RARE MR MCRAE SAYS ADDING THAT HE DOESN'T REMEMBER WHY MR PANKAU THEN IN HIS MID20S FAILED THE IRS'S FLORIDA OFFICES SAY THEIR RECORDS DON'T GO BACK FAR ENOUGH TO HAVE ANY INFORMATION ON MR PANKAU ONE OF MR PANKAU'S MOST RENOWNED FEATS OF DERRINGDO WAS THE TIME HE SUPPOSEDLY SNATCHED A LIST OF GEN NORIEGA'S HOLDINGS FROM A BURNING BUILDING NEW YORK TIMES REPORTER STEVE LOHR WROTE IN HIS ARTICLE ON PAGE ONE OF THE PAPER'S FEB 20 1992 EDITION MR PANKAU WAS IN PANAMA ON AN INSURANCE INVESTIGATION DURING THE AMERICAN INVASION IN THE CONFUSION HE SLIPPED INTO A BUILDING AND MADE OFF WITH A COMPUTER PRINTOUT LISTING MORE THAN 800 MILLION IN ASSETS HELD IN 18 COUNTRIES ASSETS HE IS CONVINCED ARE GENERAL NORIEGA'S PERSONAL HOLDINGS A SIMILAR VERSION APPEARS IN CHECK IT OUT MR PANKAU BEGINS I JUST HAPPENED TO BE IN PANAMA DURING THE 1989 INVASION SITTING IN A BAR WHEN PARACHUTES BLOSSOMED ALL OVER THE SKY BUT MR PANKAU NOW SAYS HE WASN'T IN PANAMA WHEN THE FIGHTING BROKE OUT IN THE BRIEF PHONE CONVERSATION WITH THE WALL STREET JOURNAL MR PANKAU SAID THAT THE TIMES STORY WAS A MISQUOTE AND THAT HIS EMPLOYEES NOT HE WERE IN PANAMA HE CUT OFF QUESTIONING BEFORE A REPORTER COULD ASK ABOUT THE DISCREPANCY BETWEEN THIS VERSION AND THE ACCOUNT HE GAVE IN HIS BOOK MR LOHR THE TIMES REPORTER WAS TRAVELING AND COULDN'T BE REACHED A SPOKESMAN WILLIAM ADLER SAID TIMES EDITORS WERE NO LONGER FAMILIAR ENOUGH WITH DETAILS OF THE ARTICLE TO COMMENT THE US ATTORNEY'S OFFICE IN MIAMI WHICH IN 1992 SUCCESSFULLY PROSECUTED MR NORIEGA ON DRUG TRAFFICKING CHARGES SAYS IT CONSIDERED USING THE DOCUMENT THAT MR PANKAU CLAIMS LISTS GEN NORIEGA'S HOLDINGS BUT DIDN'T BECAUSE IT WAS NOT POSSIBLE TO VERIFY ITS AUTHENTICITY SAYS ASSISTANT US ATTORNEY MICHAEL P SULLIVAN MR PANKAU MEANWHILE TOLD THE WALL STREET JOURNAL LAST WEEK THAT HE HAS BEEN RETAINED BY THE PANAMANIAN GOVERNMENT TO TRACK DOWN MR NORIEGA'S ASSETS BUT EUSEBIO MARCHOSKY WHO HEADS THE PANAMANIAN GOVERNMENT'S LEGAL EFFORT TO RECOVER GEN NORIEGA'S ASSETS WORLDWIDE SAYS THE GOVERNMENT ISN'T IN CONTACT WITH MR PANKAU WE DON'T HAVE ANY SORT OF AGREEMENT WITH HIM IN HIS STATEMENT MR PACK SAYS MR PANKAU HAD ALLUDED TO IMMORAL AND IN SOME CASES CRIMINAL ACTIVITY BY MAJOR PUBLIC AND POLITICAL FIGURES LEADING THE WRITER TO BELIEVE THAT EACH AND EVERY ONE OF PANKAU'S TIDBITS ABOUT THESE CELEBRITIES WOULD IF TRUE CREATE A MAJOR SENSATION UPON PUBLICATION OF THE BOOK BUT MR PACK SAYS HE COULDN'T GET THE EVIDENCE HE NEEDED FROM MR PANKAU ONE OF MR PANKAU'S MOST NOTED ESCAPADES IS THE STORY HE TOLD ABOUT VIDEOTAPING MS RICE AND SEN HART TOGETHER WHICH HE RECOUNTED IN A 1992 ARTICLE IN THE WASHINGTON POST THE VERSION HE GAVE MR PACK WAS EVEN MORE DETAILED CLAIMING ACCORDING TO MR PACK'S STATEMENT IT WAS HE WHO CAUGHT GARY HART WITH DONNA RICE AND THAT HE TIPPED OFF THE MIAMI HERALD WHICH RESULTED IN 1987 NEWS STORIES THAT KNOCKED HART THE LEADING CONTENDER FOR THE 1988 DEMOCRATIC PRESIDENTIAL NOMINATION OUT OF THE RACE AND ENDED HART'S POLITICAL CAREER JAMES SAVAGE ASSOCIATE EDITOR FOR INVESTIGATIVE REPORTING AT THE MIAMI HERALD SAYS MR PANKAU NEVER INFORMED THE HERALD OR GAVE IT ANY PICTURES BEFORE ITS STORY ON SEN HART'S RELATIONSHIP WITH MS RICE I WAS THE EDITOR ON THE STORY I WOULD HAVE KNOWN MR SAVAGE SAYS MR PACK'S STATEMENT ALSO SAYS HE COULDN'T GET MR PANKAU TO DOCUMENT A HOST OF DRAMATIC STORIES SUCH AS A CLAIM THAT HE WAS KIDNAPPED BY MIAMI DRUG LORDS OR AN ANECDOTE ABOUT THE TIME HE WON A BUGATTI AN EXPENSIVE ITALIAN SPORTS CAR IN A POKER GAME WITH A WEALTHY RANCHER ACCUSED OF MANSLAUGHTER LIKE THE NORIEGA STORY THE BUGATTI TALE HAS GONE THROUGH SEVERAL VERSIONS THE NEW YORK TIMES SAID HE WON THE CAR IN A JAILHOUSE POKER GAME WHILE MR PACK CLAIMS THE PRIVATE EYE TOLD HIM THE GAME TOOK PLACE AT THE DEFENDANT'S HOME MR PACK ALSO SAYS MR PANKAU SHOWED HIM IN 1992 THE CAR HE CLAIMED TO HAVE WON AND IT WASN'T A BUGATTI BUT A VW BEETLE WITH SOME KIND OF FAKE FRONT END ATTACHED TO IT ASKED TO RECOUNT THE STORY OF THE CAR TO THE JOURNAL MR PANKAU SAID I DON'T WANT TO RIGHT NOW SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR PANKAU RESPONDS WSJ JAN 19 1994 SEE RELATED LETTER LETTERS TO THE EDITOR BRAVO ON PANKAU WSJ JAN 241994 9401120006 9401190116 YY94 MM01 YY94 MM02 9402020209 940202 MARKETING & MEDIA WHITTLE GETS SPONSORSHIP COMMITMENTS FOR MEDICAL NETWORK BUT NEEDS MORE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHITTLE COMMUNICATIONS LP SAID THAT THREE MAJOR DRUGCOMPANY ADVERTISERS WILL PROVIDE 147 MILLION TO SPONSOR ITS MEDICAL NEWS NETWORK BUT THE COMPANY STILL NEEDS ABOUT 53 MILLION MORE IN SPONSORSHIP COMMITMENTS TO LAUNCH THE NETWORK NATIONALLY THIS FALL WHITTLE DECLINED TO IDENTIFY THE THREE COMPANIES MEDICAL NEWS NETWORK AN ELECTRONIC NEWS AND INFORMATION SERVICE DELIVERED BY SATELLITE TO DOCTOR'S OFFICES HAS JUST COMPLETED A ONEYEAR TEST OF THE SERVICE IN 6000 PHYSICIANS' OFFICES A NUMBER OF MAJOR DRUG COMPANIES PROVIDED 100 MILLION IN ADVERTISING AND SPONSORSHIP DOLLARS TO THE TEST WHICH ENDED MONDAY BUT CIBAGEIGY CORP MERCK & CO AND ABBOTT LABORATORIES INC CONFIRMED THAT FOR A NUMBER OF REASONS INCLUDING BUDGET CUTS AND CHANGES IN COMPANY MARKETING PLANS THEY WILL NOT PARTICIPATE IN THE NATIONAL LAUNCH OF MEDICAL NEWS NETWORK OTHERS THAT PARTICIPATED IN THE TEST INCLUDING MARION MERRELL DOW INC PFIZER INC JOHNSON & JOHNSON AND GLAXO INC SAID THEY WERE EITHER UNDECIDED ABOUT BACKING THE WHITTLE PROJECT FURTHER OR STILL IN NEGOTIATIONS WITH THE COMPANY IF MERCK STICKS WITH ITS DECISION NOT TO SUPPORT THE NATIONAL LAUNCH OF MEDICAL NEWS NETWORK IT WOULD BE A BLOW TO WHITTLE'S PLANS MERCK THE COUNTRY'S LARGEST DRUG COMPANY GAVE THE LARGEST CHUNK OF MONEY FOR WHITTLE'S TEST OF THE NETWORK CHRISTOPHER WHITTLE COMPANY FOUNDER AND CHAIRMAN SAID YESTERDAY IN AN INTERVIEW THAT WHITTLE IS STILL IN DISCUSSIONS WITH MERCK BUT LATE YESTERDAY A MERCK SPOKESWOMAN SAID WE HAVE DEFINITELY DECLINED TO PARTICIPATE FURTHER AT THIS TIME OUR RELATIONSHIP WITH WHITTLE IS TERMINATED ALAN GREENBERG MEDICAL NEWS NETWORK CHAIRMAN SAID IN A STATEMENT THAT IN ADDITION TO THE THREE THAT HAVE SIGNED ON FOR THE NATIONAL LAUNCH WHITTLE IS IN THE FINAL STAGES OF TALKS WITH FIVE OTHER POTENTIAL DRUG COMPANY SPONSORS NEGOTIATIONS ARE EXPECTED TO BE FINISHED IN A FEW WEEKS AND BY THE END OF THIS MONTH WHITTLE EXECUTIVES SAID THEY WILL RELEASE DETAILS ABOUT THE NETWORK'S NATIONAL LAUNCH INCLUDING PLANS FOR A SECOND ELECTRONIC NETWORK THAT WOULD REACH HEALTHINDUSTRY MANAGED CARE EXECUTIVES MEDICAL NEWS NETWORK LAUNCHED IN EARLY 1993 WAS DEVISED AS AN INTERACTIVE WAY FOR MAJOR DRUG COMPANIES TO REACH THEIR MOST IMPORTANT CLIENTS PHYSICIANS WHO PRESCRIBE DRUGS AND MEDICATION WHITTLE HAS SPENT AN UNDISCLOSED SUM TO INSTALL PERSONALCOMPUTERLIKE VIDEO MONITORS AND KEYBOARDS IN PHYSICIANS' OFFICES DOCTORS CAN VIEW A DAILY MEDICAL NEWS PROGRAM ORDER DRUG SAMPLES REQUEST INFORMATION FROM COMPANIES BY FAX OR MAIL AND VIEW ACCREDITED CONTINUING MEDICALEDUCATION PROGRAMS AND NEWS SPECIALS FAILURE TO ATTRACT ENOUGH DRUGCOMPANY SPONSORS FOR THE NATIONAL LAUNCH WOULD DEAL A POTENTIALLY CRIPPLING BLOW TO MEDICAL NEWS NETWORK AND ADD TO WHITTLE'S WOES IN GENERAL WHITTLE'S SPECIAL REPORT NETWORK FOR DOCTORS' WAITING ROOMS IS OPERATING AT A LOSS AND IS CONSIDERED PROBLEMATIC ACCORDING TO ONE WHITTLE EXECUTIVE EVEN THOUGH IT HAS HIRED NEW SALES PEOPLE AND OPENED NEW SALES OFFICES IN CHICAGO AND LOS ANGELES IN RECENT MONTHS AND WHITTLE'S FORPROFIT EDISON SCHOOL PROJECT WHILE IMPRESSING PUBLICSCHOOL GROUPS AND HIRING NEW STAFF WAS UNABLE TO ATTRACT BIG CORPORATE PARTNERS AND HAS BEEN SCALED BACK WHITTLE'S ADVERTISERSUPPORTED CHANNEL ONE INSCHOOL NEWS BROADCAST CONTINUES TO GENERATE CONTROVERSY THOUGH WHITTLE SAID ADVERTISING DEMAND ON THE SYSTEM REMAINS STRONG 9402020208 940202 POLITICS & POLICY IMF CHIEF SAYS RUSSIAN REFORM IS KEY TO FUNDS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEAD OF THE INTERNATIONAL MONETARY FUND WARNED IT MAY NOT BE EASY FOR RUSSIA TO AGREE TO THE ECONOMIC REFORMS NECESSARY TO UNLOCK BILLIONS OF DOLLARS OF IMF AND PRIVATE FINANCING MICHEL CAMDESSUS THE IMF'S MANAGING DIRECTOR USED AN UNUSUAL MEETING WITH REPORTERS TO SEND A FIRM MESSAGE TO THE RUSSIAN GOVERNMENT AND TO DEFLECT GROWING CRITICISM THAT THE IMF HAS DONE TOO LITTLE TO PRESS ECONOMIC REFORMS ON MOSCOW WE CONSIDER IT VITAL TO SPEED UP THE STABILIZATION AND REFORM PROCESS IN RUSSIA TO CREATE THE NECESSARY PRECONDITIONS FOR SUSTAINED GROWTH AND IMPROVED LIVING STANDARDS MR CAMDESSUS SAID WE ALL KNOW THAT WITHOUT ADEQUATELY STRONG MONETARY AND BUDGETARY POLICIES NO EFFORTS TO REDUCE INFLATION AND STABILIZE THE RUBLE WILL BE SUCCESSFUL FOR LONG HE NOTED THAT LOWER INFLATION IS A PRECONDITION FOR ATTRACTING OFFICIAL AID AND PRIVATE INVESTMENT THAT RUSSIA NEEDS TO BUILD A STRONG MARKETORIENTED ECONOMY MR CAMDESSUS SPOKE AGAINST A BACKGROUND OF INCREASING CONCERN IN WASHINGTON AND EUROPE THAT RUSSIA IS MOVING IN THE WRONG DIRECTION WORSENING ECONOMIC CONDITIONS IN RUSSIA HAVE PRODUCED A BACKLASH AGAINST THE MONETARY AND BUDGETARY DISCIPLINE THAT'S AT THE HEART OF IMF ADJUSTMENT PROGRAMS THE NEW PARLIAMENT ELECTED IN DECEMBER IS LESS COMMITTED TO WESTERNSTYLE RESTRUCTURING AND SEVERAL LEADING REFORMERS HAVE RECENTLY LEFT THE GOVERNMENT AN IMF TEAM ARRIVED IN RUSSIA THIS WEEK TO START NEGOTIATIONS ON AID THE IMMEDIATE ISSUE IS WHETHER RUSSIA CAN IMPOSE ENOUGH DISCIPLINE ON ITS ECONOMY TO WIN THE RELEASE OF 15 BILLION IN IMF FUNDS THE GOVERNMENT WANTS THE MONEY TO PAY OFF BUDGET ARREARS BUT AN ACCEPTABLE REFORM PROGRAM COULD ALSO UNFREEZE BILLIONS OF DOLLARS OF ADDITIONAL IMF FUNDS TO HELP STABILIZE THE RUBLE AND CREATE THE CONDITIONS TO ATTRACT THE PRIVATE INVESTMENT NECESSARY TO HELP RUSSIA REBUILD ITS DILAPIDATED ENERGY MINING MANUFACTURING AND AGRICULTURAL INDUSTRIES WE DON'T GO TO MOSCOW WITH A PREESTABLISHED LIST OF THINGS THEY MUST DO MR CAMDESSUS SAID BUT HE TICKED OFF THE KEY REQUIREMENTS LOWER INFLATION A CONSISTENT PACE OF STRUCTURAL REFORM LEADING TO A MARKET ECONOMY BASED ON WORLD PRICES THE GENERATION OF MORE RESOURCES FOR UNEMPLOYMENT BENEFITS PENSIONS AND OTHER SOCIAL SAFETY NETS BY DIVERTING MONEY FROM INDUSTRIAL SUBSIDIES A NATIONAL CONSENSUS FOR REFORM AND APPROPRIATE INTERNATIONAL SUPPORT MR CAMDESSUS EXPRESSED PARTICULAR CONCERN ABOUT INFLATION WHICH IS CURRENTLY RUNNING AT A MONTHLY RATE OF ABOUT 20 UP FROM 12 IN DECEMBER WE MUST HAVE INFLATION GOING DOWN WE MUST HAVE A CREDIBLE BUDGET HE SAID THEY WOULD LIKE TO PUT EMPHASIS ON NONMONETARY METHODS FOR CONTROLLING INFLATION HE SAID IF THAT MEANS BUDGET RESTRAINT THAT WOULD BE MUSIC TO OUR EARS HOWEVER HE SAID WE'RE HEARING ABOUT AID TO SPECIFIC SECTORS WHICH WOULD MEAN MORE NOT LESS GOVERNMENT SPENDING THE RUSSIAN REFORM EFFORT IS THE BIGGEST MOST COMPLEX JOB THE IMF HAS UNDERTAKEN IN DEALING WITH RUSSIA THE IMF HAS BEEN CALLED BOTH TOO HARSH AND TOO TIMID WE ARE THE SCAPEGOAT MR CAMDESSUS SAID WE ARE THE CONVENIENT TARGET FOR CRITICISM WE MUST LIVE WITH THAT MR CAMDESSUS NOTED THAT THE WEST HAS DISBURSED 38 BILLION OF THE 55 BILLION IT HAS PROMISED TO RUSSIA SINCE 1992 MOST OF THE REST OF THE MONEY IS BEING HELD BACK BY THE IMF AND THE WORLD BANK UNTIL CONDITIONS STABILIZE IN RUSSIA BUT IT IS PRIVATE INVESTMENT NOT OFFICIAL AID THAT ULTIMATELY WILL FINANCE THE REBUILDING OF RUSSIA WITH STABLE ECONOMIC CONDITIONS THE RATE OF RETURN ON INVESTMENT IN RUSSIA COULD BE EXTREMELY HIGH MR CAMDESSUS SAID 9402020207 940202 PHILIP MORRIS SUES CITY OVER NOSMOKING RULES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL IN A MAJOR SHIFT IN STRATEGY PHILIP MORRIS COS SUED THE CITY OF SAN FRANCISCO TO TRY TO OVERTURN ONE OF THE NATION'S TOUGHEST ANTISMOKING ORDINANCES WITH THE SUIT PHILIP MORRIS'S FIRST LEGAL CHALLENGE TO A CITY SMOKING ORDINANCE THE COMPANY IS STEPPING UP ITS FIGHT AGAINST A NEW GENERATION OF SMOKING RESTRICTIONS AT THE LOCAL LEVEL THE SAN FRANCISCO ORDINANCE WHICH WENT INTO EFFECT YESTERDAY BANS SMOKING IN OFFICES AND CALLS FOR A BAN ON SMOKING IN RESTAURANTS BY JAN 1 1995 PHILIP MORRIS ASKED A STATE COURT TO DECLARE THE ORDINANCE INVALID AND UNENFORCEABLE ON THE GROUND THAT IT IS PREEMPTED BY STATE SAFETY REGULATIONS IN THE PAST 12 MONTHS DOZENS OF CITIES AROUND THE COUNTRY HAVE PASSED EXTREMELY TOUGH ANTISMOKING LAWS BOLSTERED BY LAST YEAR'S ENVIRONMENTAL PROTECTION AGENCY REPORT THAT FOUND SECONDHAND CIGARETTE SMOKE CAUSES CANCER LOCAL ORDINANCES ARE BY FAR THE MOST IMPORTANT SUCCESSES IN TOBACCO CONTROL SAYS MARK PERTSCHUK CODIRECTOR OF AMERICANS FOR NONSMOKERS' RIGHTS IN BERKELEY CALIF AT THE STATE AND FEDERAL LEVEL THE TOBACCO INDUSTRY IS REMARKABLY POWERFUL AND YOU DO NOT SEE THE KIND OF SUCCESSES WE SEE AT THE LOCAL LEVEL STEVE PARRISH PHILIP MORRIS'S GENERAL COUNSEL SAID THE COMPANY WILL SERIOUSLY CONSIDER CHALLENGING OTHER RESTRICTIVE CITY ORDINANCES AROUND THE COUNTRY THERE HAVE BEEN A LOT OF THEM COMING UP ESPECIALLY SINCE THE EPA REPORT CAME OUT LAST YEAR SAID MR PARRISH WE THINK THEY ARE A POTENTIAL PROBLEM PHILIP MORRIS JOINED WITH A GROUP OF LOCAL BUSINESSES TO FILE THE SUIT AS PART OF ITS FIGHT AGAINST TOUGH SMOKING RESTRICTIONS ON THE LOCAL LEVEL PHILIP MORRIS HAS BEEN AGGRESSIVELY LOBBYING AT STATE CAPITALS TO PASS LAWS THAT PREEMPT RESTRICTIVE MUNICIPAL ORDINANCES ANTISMOKING ACTIVISTS IN NORTH CAROLINA ARE FUMING AT A TOBACCO INDUSTRYSUPPORTED LAW THAT REGULATES SMOKING IN PUBLIC PLACES BUT CONTAINS NO ACTUAL RESTRICTIONS ON SMOKING IT'S WORSE THAN BAD SAID ADAM GOLDSTEIN AN ASSISTANT PROFESSOR OF FAMILY MEDICINE AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL THE LAW WHICH WAS PASSED LAST YEAR CONTAINS A PROVISION THAT PREVENTS CITIES FROM ENACTING MORE RESTRICTIVE LAWS GOVERNING SMOKING IN PUBLIC PLACES IT WILL STYMIE A LOT OF THE ACTION THAT WOULD HAVE OCCURRED AS A RESULT OF THE EPA REPORT SAID DR GOLDSTEIN WHO NOTES THAT NORTH CAROLINA CITIES RUSHED TO PASS TOUGH LOCAL LAWS BEFORE THE BILL BECAME LAW DR GOLDSTEIN SAID THE TOBACCO INDUSTRY ACTIVELY SUPPORTED THE LAW IT WAS THEIR BILL HE SAID THE ISSUE IS SOMEWHAT DIFFERENT IN THE CALIFORNIA CASE PHILIP MORRIS WHICH JOINED WITH LOCAL BAR AND HOTEL OWNERS TO FIGHT THE ORDINANCE ARGUES THAT THE CITY IS PREEMPTED FROM PASSING THE LAW BECAUSE STATE WORKPLACE SAFETY RULES ARE RESPONSIBLE FOR REGULATING THE SAFETY OF WORKERS PHILIP MORRIS NOTES THAT IN A SIMILAR LAWSUIT IN 1992 A CALIFORNIA JUDGE THREW OUT A SAN FRANCISCO ORDINANCE REGULATING THE USE OF VIDEO DISPLAY TERMINALS IN PRIVATE BUSINESSES BUT IN RECENT YEARS CITIES HAVE BEGUN TO ASSERT MORE AUTHORITY IN DETERMINING WHAT IS SAFE FOR THEIR RESIDENTS THERE ARE MANY ARGUMENTS FOR ALLOWING THIS TYPE OF THING TO BE DECIDED LOCALLY SAID GERALD FRUG A PROFESSOR OF LAW AT THE HARVARD LAW SCHOOL IT COULD BE DECIDED EITHER WAY HE ADDED THAT THE QUESTION OF PREEMPTION IS BECOMING MORE OF AN ISSUE BECAUSE CITIES HAVE BECOME MORE CONCERNED ABOUT PROTECTING WORKERS BUT JEFFREY TANENBAUM A SAN FRANCISCO ATTORNEY REPRESENTING PHILIP MORRIS ASSERTED THAT SAN FRANCISCO HAS EXCEEDED ITS AUTHORITY IF EVERY LOCAL GOVERNMENT TOOK IT UPON ITSELF TO ISSUE VARYING WORKPLACE REGULATIONS HE SAID IT WOULD BE IMPOSSIBLE TO DO BUSINESS IN THIS NATION CALIFORNIA IN PARTICULAR HAS BECOME INCREASINGLY INHOSPITABLE TO SMOKERS WHICH IS PRESUMABLY ANOTHER REASON FOR PHILIP MORRIS'S STRONG SHOW OF FORCE LAST YEAR THE LOS ANGELES CITY COUNCIL PASSED A LAW BANNING SMOKING IN THE CITY'S 7000 RESTAURANTS THE BAN WHICH HAS ALREADY TAKEN EFFECT IS BEING CHALLENGED IN COURT BY LOCAL BUSINESSES ANTISMOKING ACTIVISTS SAY THE CHALLENGE IS FUNDED BY THE TOBACCO INDUSTRY IN SAN FRANCISCO PHILIP MORRIS ACKNOWLEDGES IT APPROACHED BUSINESSES ABOUT JOINING FORCES ON THE LAWSUIT CALIFORNIA IS ALSO ONE OF THE ONLY STATES IN THE COUNTRY TO BUY ADVERTISEMENTS ON POPULAR TELEVISION SHOWS TO RUN ANTITOBACCO ADS THE PROGRAM IS FINANCED BY THE STATE CIGARETTE TAX CALIFORNIA HAS SET A PRECEDENT THAT IS GOING TO SWEEP ACROSS THE US SAYS ANGELA ALIOTO PRESIDENT OF SAN FRANCISCO'S BOARD OF SUPERVISORS AND THE AUTHOR OF THE CITY'S ANTISMOKING LAW 9402020206 940202 CORPORATE FOCUS SALES OF IBM'S WORKHORSE AS/400 ARE STARTING TO SLOW RESULTS FOR MIDRANGE COMPUTER UNDERCUT BY CHEAP PCS SLID 10 IN 1993 BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL THE AS/400 THE MIDRANGE COMPUTER ACCLAIMED AS A SIGN OF STRENGTH AT INTERNATIONAL BUSINESS MACHINES CORP WHEN IT WAS INTRODUCED IN 1988 IS NOW IN TROUBLE LIKE IBM'S BIGGER MAINFRAMES THE AS/400 IS GETTING UNDERCUT BY CHEAPER AND EVER MORE POWERFUL DESKTOP MACHINES FOR THE FIRST TIME SINCE THE PRODUCT WAS UNVEILED IBM ALSO LOST MARKET SHARE LAST YEAR IN THE MIDRANGE SEGMENT AS RIVALS MOVED MORE QUICKLY TO MAKE THEIR MIDRANGE COMPUTERS MORE OPEN LETTING CUSTOMERS MIX AND MATCH VARIOUS COMPUTERS AND SOFTWARE PROGRAMS THE STEEPNESS OF THE SLIDE FIRST DISCLOSED IN IBM'S YEAREND RESULTS LAST WEEK CAUGHT SOME ANALYSTS BY SURPRISE SALES OF THE AS/400 WHICH HAS BEEN IBM'S MOST PROFITABLE HARDWARE PRODUCT IN THESE TWILIGHT YEARS OF THE MAINFRAME DECLINED ABOUT 10 IN 1993 TO 33 BILLION FROM 37 BILLION IN 1992 ANALYSTS FIGURE PROFITS WERE DOWN EVEN MORE SHARPLY PLUMMETING TO ONLY 85 MILLION LAST YEAR FROM 780 MILLION IN 1992 THEY ARE REVISING THEIR 1994 AS/400 ESTIMATES DOWNWARD AS WELL IT'S JUST ONE MORE PIECE OF THE PIE THIS WHOLE COMPANY FACES TREMENDOUS SECULAR CHANGES IN THE WORLD AND IT IS MAKING MONEY ON THE OLD STUFF SAYS CURT ROHRMAN AN ANALYST WHO FOLLOWS IBM FOR FIRST BOSTON CORP FOR THE LAST TWO YEARS PEOPLE HAVE SAID THE AS/400 WOULD ROLL OVER AND NOW IT IS IBM ISN'T THE ONLY COMPUTER MAKER TO FACE DIFFICULTIES IN THE MIDRANGE LINE ORIGINALLY CONCEIVED AS A SMALLER LESS EXPENSIVE MAINFRAME FOR SMALL AND MEDIUMSIZED BUSINESSES SUCH MINICOMPUTERS WERE ACTUALLY THE FIRST TO FEEL THE SQUEEZE FROM LINKEDUP NETWORKS OF PERSONAL COMPUTERS MIDRANGE MAKER DIGITAL EQUIPMENT CORP RECENTLY SURPRISED WALL STREET WITH A NEW ROUND OF DIFFICULTIES DIGITAL AND HEWLETTPACKARD CO ARE WORKING ON TRANSITIONS TO MORE OPEN SYSTEMS TO COMPETE MORE EFFECTIVELY AGAINST THE LOWEREND ENTRIES BUT FOR IBM THE PROBLEMS IT MUST OVERCOME TO REVIVE THE AS/400 LINE MAY BE MORE INTRACTABLE AS WITH IBM'S MAINFRAME LINE THE SLIPPAGE OF THE AS/400 HAS CREATED A WINDOW OF OPPORTUNITY FOR COMPETITORS IBM WILL NEED SOME TIME BEFORE IT CAN MAKE THE TRANSITION TO A MORE OPEN SOFTWARE SYSTEM FOR THE MIDRANGE SERIES LETTING RIVALS CAST IT AS A CLOSED PRODUCT THAT IS HARD TO INSTALL IN A MULTIBRAND ENVIRONMENT IN ADDITION IBM'S EFFORTS ARE HURT BY THE RECESSION IN EUROPE WHERE IBM GETS HALF OF ALL AS/400 SALES ONLY 35 OF SALES OCCUR IN THE US WHERE THE ECONOMY IS REBOUNDING THE REST ARE GENERATED IN ASIA EVEN IF SALES IN EUROPE ARE REVIVED THE QUESTION REMAINS WHETHER CUSTOMERS WILL COME BACK TO IBM OR SHOP ELSEWHERE THE PERCEPTION IS THAT THE AS/400 ISN'T A VERY OPEN SYSTEM AND EUROPE IS REALLY INTO OPENNESS SAYS JAMES CASSELL OF GARTNER GROUP A STAMFORD CONN CONSULTING FIRM IBM ISN'T SITTING STILL YESTERDAY IT ANNOUNCED A NEW HIGHPOWER MODEL IN THE AS/400 SERIES THAT DELIVERS 20 MORE PERFORMANCE AT ONLY A SLIGHT PRICE INCREASE AND NO CHANGE AT ALL IN COST FOR THE ACCOMPANYING SOFTWARE THAT MOVE IS EXPECTED TO PROMPT IBM TO IMPOSE PRICE CUTS IN OTHER MODELS IN THE SAME PRODUCT LINE BIG BLUE ALSO WILL INTRODUCE BY THE END OF THE YEAR A NEW PRICING APPROACH THAT AMOUNTS TO ANOTHER REDUCTION IN SOFTWARE CHARGES THE NEW USAGEBASED METHOD WILL LET CUSTOMERS PAY ACCORDING TO THE NUMBER OF USERS RATHER THAN A RIGID ONETIME CHARGE BUT IBM HAS VOWED TO IMPOSE THE MOST MARKED CHANGE NEXT YEAR WHEN IT PLANS TO INTRODUCE AN AS/400 MODEL RUNNING ON THE NEW POWERPC CHIP THE NEW CHIP DESIGNED BY A JOINT VENTURE OF IBM MOTOROLA INC AND APPLE COMPUTER INC WILL PUSH THE AS/400 INTO A MORE OPEN RISC DESIGN WHICH STANDS FOR REDUCEDINSTRUCTIONSET COMPUTING THAT WILL MAKE IT FASTER CHEAPER AND ABLE TO INTERACT WITH MORE APPLICATIONS IBM IS STILL PLANNING TO KEEP THE AS/400'S OPERATING SYSTEM OUR JOB IS TO INCREASE MARKET SHARE IN THE COMING YEAR SAYS DAVID THOMAS VICE PRESIDENT AND GENERAL MANAGER OF THE AS/400 DIVISION I DO THINK THE AS/400 HAS A CHANCE TO SELL OTHERS ALSO BELIEVE IBM CAN SOLVE THE AS/400'S PROBLEMS THE CUSTOMER BASE ITSELF IS A VALUABLE FRANCHISE OF MORE THAN 400000 INSTALLED MACHINES IT HAS PROVED ITSELF LOYAL IN THE PAST BOOSTING THE AS/400 TO THE HIGHEST MARKET SHARE IN THE BUSINESS AFTER IT REPLACED AN EARLIER MODEL THIS ISN'T A SERIOUS PROBLEM FOR IBM MAINTAINS DANIEL MANDRESH WHO FOLLOWS IBM FOR MERRILL LYNCH & CO MR MANDRESH ADDS THAT THE HIGH PROFIT MARGINS IBM HAS ENJOYED IN THE AS/400 BUSINESS LEAVE IT AMPLE ROOM TO FURTHER CUT PRICES INDEED THE AS/400 HAS BEEN ADMIRED FOR ITS RELATIVELY LOW COST AND EASE OF USE BECAUSE IBM PRELOADS THE OPERATING SYSTEM IT IS CONSIDERED A PLUGANDPLAY MACHINE THAT CAN PERFORM COMPLEX ACCOUNTING AND DATASORTING TASKS IT HAS BEEN POPULAR IN SMALL BUSINESSES AND BRANCH OFFICES THAT DON'T NEED TO LINK UP WITH CENTRALIZED MAINFRAME COMPUTERS PRODUCT TRANSITIONS HOWEVER ALWAYS POSE RISK CUSTOMERS TEND TO WAIT FOR THE LATEST WARES INSTEAD OF BUYING THE OLDER ONES IN THE MEANTIME THEY SHOP AROUND TO SEE WHAT ELSE IS ON THE MARKET DIGITAL MAYNARD MASS HAS SEEN ITS TOTAL SALES SLIP 12 TO 325 BILLION IN THE LATEST QUARTER AS ITS MIDRANGE SERIES MADE THE SWITCH TO A NEW CHIP THE ALPHA NOW HOWEVER DIGITAL CLAIMS IT IS POISED TO STRIKE AT IBM'S CUSTOMER BASE BECAUSE IT'S AHEAD OF IBM IN MAKING THE TRANSITION WE'RE TWO YEARS AHEAD OF COMPETITION SAYS STEPHEN KOENIG A GROUP MARKETING MANAGER AT DIGITAL THE AS/400 PROPRIETARY OPERATING SYSTEM IS THE NO 1 CRITICISM AMONG IBM'S CUSTOMERS AND WE DON'T HAVE THAT PROBLEM ANYMORE HE SAYS PETER BURRIS AN ANALYST AT INTERNATIONAL DATA CORP IN BOSTON ADDS IN A PRODUCT TRANSITION YOU'RE PERCEIVED TO BE OUT OF STEP WITH THE GROOVY OPEN STUFF I'D EXPECT IBM WILL LOSE SHARE AS CUSTOMERS KICK THE TIRES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM SHARES CLOSED AT 5650 UNCHANGED 9402020205 940202 GENEVA STEEL OFFERS NOTES VINEYARD UTAH GENEVA STEEL SAID IT COMPLETED A PUBLIC OFFERING OF 190 MILLION OF 9 1/2 SENIOR NOTES DUE 2004 THE COMPANY SAID NET PROCEEDS WILL BE USED TO REFINANCE ITS PRIVATELY PLACED SENIOR AND SUBORDINATED TERM DEBT AND FOR CAPITAL EXPENDITURES AND GENERAL CORPORATE PURPOSES UNDERWRITERS WERE CITICORP SECURITIES INC AND SALOMON BROTHERS INC GENEVA STEEL MAKES HOTROLLED STEEL SHEET PLATE AND PIPE 9402020204 940202 CENTRAL ILLINOIS PUBLIC SERVICE SPRINGFIELD ILL CENTRAL ILLINOIS PUBLIC SERVICE CO SAID THE 1000 EMPLOYEES REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 702 RATIFIED A NEW LABOR CONTRACT THE CONTRACT REPLACES A PACT THAT EXPIRED JUNE 30 1992 AT ONE POINT DURING THE NEGOTIATIONS THE UTILITY LOCKED OUT UNION MEMBERS AND CONTINUED TO OPERATE WITH ITS SALARIED STAFF THE MOVE TRIGGERED A COMPLAINT BY THE NATIONAL LABOR RELATIONS BOARD WHICH IS EXPECTED TO HOLD HEARINGS ON THE MATTER THIS YEAR THE NEW CONTRACT EXPIRES JUNE 30 1995 9402020203 940202 PRIDE PETROLEUM ACQUISITION HOUSTON PRIDE PETROLEUM SERVICES INC SAID IT COMPLETED THE ACQUISITION OF HYDRODRIL ARGENTINA SA TERMS WEREN'T DISCLOSED THE ACQUISITION WAS COMPLETED THROUGH PRIDE'S PRIDE INTERNATIONAL LTD UNIT HYDRODRIL OWNS AND OPERATES FOUR LANDBASED WELLSERVICING RIGS IN SOUTHERN ARGENTINA PRIDE PROVIDES WELLSERVICING AND CONTRACTDRILLING SERVICES 9402020202 940202 DOMINION TEXTILE QUEBEC PLANT MONTREAL DOMINION TEXTILE INC SAID ITS SPECIALTY YARNS DIVISION WILL CLOSE A SPINNING PLANT IN SHERBROOKE QUEBEC AND A DYEING PLANT IN MONTREAL RESULTING IN 380 LAYOFFS THE TEXTILES MAKER SAID IT WILL INVEST FIVE MILLION CANADIAN DOLLARS US38 MILLION THIS YEAR TO MODERNIZE ITS OTHER YARN MILL IN SHERBROOKE 9402020201 940202 BJ SERVICES GETS CONTRACT HOUSTON BJ SERVICES CO SAID IT SIGNED A THREEYEAR AGREEMENT WITH CONOCO INC TO PROVIDE SERVICES TO ALL OF CONOCO'S US ONSHORE DRILLING OPERATIONS AND 50 OF ITS OFFSHORE DRILLING OPERATIONS IN THE PAST A SPOKESMAN FOR BJ SERVICES SAID THE COMPANY HAD PROVIDED 30 OF THE OIL FIELD PRESSURE PUMPING SERVICES NEEDED BY CONOCO A UNIT OF DUPONT CO THE VALUE OF THE CONTRACT WILL DEPEND ON THE AMOUNT OF DRILLING CONOCO DOES THE SPOKESMAN SAID CONOCO PAID 20 MILLION FOR PRESSURE PUMPING SERVICES IN 1993 9402020200 940202 CRSS BUYS BACK STAKE IN UNIT HOUSTON CRSS INC SAID IT BOUGHT BACK A 19 STAKE IN ONE OF ITS UNITS FOR 17 MILLION PARIBAS NORTH AMERICA INC A UNIT OF THE FRENCH BANQUE PARIBAS HAD HELD THE INTEREST IN CRSS'S INDEPENDENT POWER SUBSIDIARY CRSS CAPITAL INC SINCE JUNE 1989 CRSS NOW OWNS 100 OF THE UNIT CRSS A DESIGN AND CONSTRUCTION COMPANY SAID CRSS CAPITAL CONTRIBUTED MORE THAN 17 MILLION TO CRSS'S FISCAL 1993 CONSOLIDATED OPERATING PROFIT AND IS EXPECTED TO CONTRIBUTE SIGNIFICANTLY TO EARNINGS IN THE CURRENT FISCAL YEAR WHICH ENDS JUNE 30 9402020199 940202 MESA AIRLINES DECEMBER TRAFFIC FARMINGTON NM MESA AIRLINES SAID ITS DECEMBER 1993 TRAFFIC ROSE 03 TO 76 MILLION REVENUE PASSENGER MILES FROM THE YEAREARLIER PERIOD'S 758 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DECEMBER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 49 DOWN FROM A YEAREARLIER 51 THE COMPANY SAID FULLYEAR 1993 TRAFFIC ROSE 41 TO 9287 MILLION REVENUE PASSENGER MILES FROM 6568 MILLION LOAD FACTOR IN BOTH YEARS WAS 50 9402020198 940202 INTERNATIONAL ISRAELI JORDANIAN PALESTINIAN BANKS VIE TO SERVICE AID COMING TO WEST BANK BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV THE PALESTINIAN ECONOMY HAS LACKED ANY COMPREHENSIVE BANKING SERVICES SINCE ISRAEL CAPTURED THE WEST BANK AND GAZA STRIP IN THE 1967 WAR NOW ISRAELI JORDANIAN AND PALESTINIAN BANKS ARE FIGHTING TO BE THE FIRST TO OPEN THEIR DOORS DURING THE COMING PERIOD OF PALESTINIAN SELFRULE ESTABLISHING A STRONG BANKING SYSTEM HAS LONG BEEN VIEWED AS A KEY TO DEVELOPING THE PALESTINIAN ECONOMY BUT THE BANKS AREN'T BATTLING OVER WHICH OF THEM GETS TO PROVIDE FINANCIAL SERVICES TO THE PALESTINIANS WHO UP UNTIL NOW HAVE KEPT THEIR SAVINGS AT HOME AND RELIED ON THE LOCAL MONEYCHANGER FOR ANY BANKING NEEDS INSTEAD WHAT IS DRIVING THE COMPETITION IS THE PROSPECT OF MILLIONS OF DOLLARS IN LUCRATIVE COMMISSIONS AND RELATED BUSINESS ARISING OUT OF THE TRANSFER AND DISTRIBUTION OF THE 2 BILLION IN AID PLEDGED OVER THE NEXT FIVE YEARS BY WESTERN NATIONS TO HELP THE PALESTINE LIBERATION ORGANIZATION SET UP A SELFRULING AUTHORITY BANKS SAYS ONE PALESTINIAN ECONOMIST ARE GOING TO BE A PROFITABLE BUSINESS IDEALLY THE PALESTINIANS WOULD LIKE TO KEEP THE PROFITS FOR THEMSELVES AID COMING TO THE WEST BANK SHOULD BE IN PALESTINIAN HANDS ONLY AND DISTRIBUTED THROUGH PALESTINIAN INSTITUTIONS SAYS KHALED SHAIR CHIEF EXECUTIVE OFFICER AND GENERAL MANAGER OF THE COMMERCIAL BANK OF PALESTINE WHICH IS SET TO BE THE FIRST PALESTINIAN BANK WHEN IT OPENS ITS DOORS IN RAM ALLAH THIS MONTH IT HAS RECEIVED PLO APPROVAL TO ACT AS A CONDUIT OF FOREIGN AID BUT THE PALESTINIANS ARE INCREASINGLY WORRIED BY JORDAN'S EAGERNESS TO REOPEN ITS BANKS EIGHT JORDANIAN BANKS WITH A TOTAL OF 31 BRANCHES OPERATED IN THE WEST BANK BEFORE 1967 AND THE JORDANIAN CENTRAL BANK HAS ALREADY GIVEN APPROVAL TO FIVE OF THEM TO REOPEN SOME OF THEIR BRANCHES CURRENTLY ALL BANKS WISHING TO OPERATE IN THE WEST BANK MUST ALSO BE APPROVED BY THE ISRAELI CENTRAL BANK THE PLO AND JORDAN MAY SPEAK OF ENJOYING A BROTHERLY RELATIONSHIP AS REFLECTED BY THE SIGNING LAST MONTH OF AN ECONOMIC COOPERATION AGREEMENT BUT PRIVATELY MANY PALESTINIAN BANKERS ARE AFRAID THAT THE JORDANIAN BANKS ARE GOING TO OVERPOWER US SAYS THE ECONOMIST SO IN WHAT SURELY MUST BE ONE OF THE ODDEST ECONOMIC ALLIANCES TO ARISE OUT OF THE ISRAELPLO PEACE ACCORD THE PLO HAS TURNED TO THE ISRAELIS AS A KIND OF INSURANCE POLICY AGAINST THE IMPENDING JORDANIAN BANKING INVASION IT HAS GIVEN THE GOAHEAD TO A GROUP OF PALESTINIAN BUSINESSMEN TO SET UP A NEW COMMERCIAL BANK IN THE OCCUPIED TERRITORIES IN PARTNERSHIP WITH BANK LEUMI AN ISRAELI BANK CLOSELY ASSOCIATED THROUGHOUT ITS HISTORY WITH THE ZIONIST MOVEMENT THE BANK TO BE CALLED THE INTERNATIONAL PALESTINIAN BANK OR IPB WILL BE JOINTLY OWNED BY THE PALESTINIAN INVESTORS WHO ARE IN THE PROCESS OF REGISTERING AS A COMPANY TO BE BASED IN RAM ALLAH BANK LEUMI BANQUE COMMERCIALE DU MAROC OF MOROCCO AND BANCO CENTRAL HISPANO OF SPAIN EACH GROUP WILL INVEST 10 MILLION AND NOMINATE THREE MEMBERS TO THE BOARD OF DIRECTORS OF THE NEW ENTERPRISE WHICH WILL BE MANAGED BY A QUALIFIED BANKER OF ARAB ORIGIN ACCORDING TO MOSHE SANBAR CHAIRMAN OF BANK LEUMI MR SANBAR SAYS THE AGREEMENT WHICH HAS BEEN FORMALLY SIGNED BY ALL OF THE PARTIES EXCEPT THE PALESTINIAN INVESTMENT GROUP IS BASED ON THE PREMISE THAT ALL POLITICS WILL BE KEPT OUT OF THE BANK VAULT THE COMBINATION OF PARTNERS MAKES THE BANK IDEALLY POSITIONED TO WIN A LARGE CHUNK OF BUSINESS FROM FOREIGN INVESTORS AND DONORS SAYS MR SANBAR BANK LEUMI WILL TURN OVER THE TWO BRANCHES IT CURRENTLY OPERATES IN THE WEST BANK TO IPB AS WELL AS A SOPHISTICATED COMPUTER SYSTEM BANCO CENTRAL HISPANO HAS IMPORTANT TIES IN EUROPE BANQUE COMMERCIALE DU MAROC IN THE ARAB WORLD AND THE PALESTINIAN PARTNERS WITH THE PLO SINCE THE PALESTINIANS PROFESS TO FEAR ISRAELI INTENTIONS TOWARD THEIR FRAGILE ECONOMY AS MUCH AS THEY DO THOSE OF THE JORDANIANS WHY GO TO THE ISRAELIS INSTEAD OF FORMING AN ALLIANCE WITH ONE OF THE JORDANIAN BANKS WE HAVE LEARNED NOT TO PUT ALL OUR EGGS IN ONE BASKET SAYS HANNA S SINIORA A PALESTINIAN BUSINESSMAN IN JERUSALEM WHO IS CONSIDERING INVESTING IN IPB ONE ISRAELI BANKING OFFICIAL SAYS THE PALESTINIANS' ECONOMIC PRAGMATISM ALSO STEMS FROM A DESIRE TO ENSURE THAT THERE ARE NO DELAYS IN THE ARRIVAL OF AID PLEDGED BY THE DONORS CULTURALLY AND LANGUAGEWISE THE PALESTINIANS WOULD BE MORE COMFORTABLE WITH JORDANIAN BANKS AS PARTNERS HE SAYS BUT THEY THINK THE WESTERN DONORS WOULD BE MORE COMFORTABLE WITH US 9402020197 940202 BUSINESS BRIEF ALDUS CORP STOCK SLIPS 15 ON REPORT OF FOURTHQUARTER EARNINGS ALDUS CORP'S STOCK SLUMPED 15 AFTER THE SOFTWARE PUBLISHER'S FOURTHQUARTER GROSS PROFIT MARGINS FAILED TO MATCH STRONG THIRDQUARTER MARGINS ALDUS POSTED PROFIT OF 47 MILLION OR 34 CENTS A SHARE FOR THE FOURTH QUARTER MORE THAN DOUBLE THE 19 MILLION OR 14 CENTS A SHARE EARNED A YEAR EARLIER THE LATEST EARNINGS WHICH INCLUDED A RESTRUCTURING CHARGE OF THREE CENTS A SHARE WERE TWO CENTS BELOW ANALYSTS' MEAN EXPECTATIONS REVENUE FOR THE SEATTLE COMPANY'S FOURTH QUARTER WAS UP 25 TO 574 MILLION FROM 459 MILLION A YEAR AGO THE BIG LETDOWN ANALYSTS SAID WAS ALDUS'S FOURTHQUARTER MARGIN WHICH FELL TO 79 FROM 82 IN THE THIRD QUARTER ALDUS OFFICIALS SAID THE COMPANY'S THIRDQUARTER GROSS MARGINS WERE UNUSUALLY STRONG BECAUSE OF HEAVY SHIPMENTS OF HIGHMARGIN UPGRADES FOR ALDUS'S PAGEMAKER PUBLISHING SOFTWARE IN TRADING ON THE NASDAQ STOCK MARKET ALDUS CLOSED AT 2225 A SHARE DOWN 4 9402020196 940202 ECONOMY MANUFACTURING EXPANDED AGAIN DURING JANUARY PURCHASING MANAGERS FIND INDICATIONS OF INFLATION IN THEIR LATEST SURVEY BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HEALTHY RISE IN ORDERS HELPED THE MANUFACTURING SECTOR EXPAND AGAIN IN JANUARY ACCORDING TO A SURVEY OF PURCHASING MANAGERS BUT THE GROWTH BROUGHT ALONG NEW HINTS OF INFLATION THE REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDICATED THAT MANUFACTURERS GAINED GROUND FOR THE FIFTH STRAIGHT MONTH AND THAT THE ECONOMY IS PICKING UP MOMENTUM THE PURCHASING MANAGERS' INDEX ROSE TO 577 IN JANUARY FROM DECEMBER'S REVISED 571 AND CLIMBED BACK TO PRERECESSION LEVELS THE REPORT SAID A READING OVER 50 GENERALLY MEANS THE MANUFACTURING SECTOR IS GROWING THE INDEX FOR NEW ORDERS ROSE TO 662 FROM 65 REACHING THE HIGHEST LEVEL IN 10 YEARS THE REPORT ALSO SAID NEW EXPORT ORDERS ROSE TO THEIR HIGHEST POINT IN MORE THAN TWO YEARS HOWEVER THE REPORT RECORDED A LARGE AND UNEXPECTED INCREASE IN PRICES THE INDEX'S PRICE COMPONENT JUMPED TO 598 FROM 513 IN DECEMBER ALTHOUGH A READING OVER 47 GENERALLY MEANS THAT PRICES FOR MANUFACTURERS ARE RISING ANALYSTS SAID THE JANUARY INCREASE SHOULDN'T CAUSE ALARM IN DECEMBER CONSUMER AND WHOLESALE PRICES WERE BOTH WELLRESTRAINED WE SHOULDN'T BLITHELY IGNORE IT BUT WE SHOULDN'T PANIC INFLATION IS HERE EITHER SAID SAMUEL KAHAN CHIEF ECONOMIST AT FUJI SECURITIES IN CHICAGO FINANCIAL MARKETS REACTED NEGATIVELY TO THE REPORT BOND PRICES PLUNGED WHICH HELPED PUSH STOCKS LOWER THE DOW JONES INDUSTRIAL AVERAGE SANK 1435 POINTS TO 396401 PRICE INCREASES WERE CONFINED MOSTLY TO STEEL GRAIN CHLORINE AND LUMBER ROBERT BRETZ WHO HEADS THE SURVEY AND IS DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INC DIDN'T BELIEVE THE INCREASES INDICATE AN INFLATIONARY TREND HE EXPLAINED THAT STEEL WENT UP BECAUSE OF TRADE RESTRICTIONS GRAIN WENT UP BECAUSE OF THE MIDWEST FLOODS AND LUMBER WENT UP BECAUSE OF THE FLOODINDUCED CONSTRUCTION BOOM REDUCED CUTTING IN THE NORTHWEST AND THE WINTER CLOSING OF NORTHERN MILLS THE REPORT INDICATED BACKLOGGED ORDERS AND SUPPLIER DELIVERIES WERE UP WHILE INVENTORIES AND UNEMPLOYMENT WERE DOWN IN A CONTINUING TREND SUGGESTING DEMAND EXCEEDED SUPPLY MANUFACTURERS HAVE BEEN CAUTIOUS IN HIRING BUT STRONG DEMAND WILL LIKELY LEAD TO FURTHER HIRING INCREASES SAID CHARLES LIEBERMAN MANAGING DIRECTOR OF CHEMICAL SECURITIES INC IN NEW YORK SEPARATELY THE COMMERCE DEPARTMENT REPORTED NEW CONSTRUCTION SPENDING FOR DECEMBER ROSE 21 FOLLOWING REVISED INCREASES OF 16 IN NOVEMBER AND 21 IN OCTOBER IT WAS THE SIXTH CONSECUTIVE MONTH OF INCREASES FOR ALL OF 1993 TOTAL NEWCONSTRUCTION SPENDING INCREASED 8 SPENDING ROSE 6 ON RESIDENTIAL CONSTRUCTION AND JUMPED 13 ON SINGLEFAMILY HOMES COMMERCIALCONSTRUCTION SPENDING GREW 12 WHILE PUBLICCONSTRUCTION SPENDING GREW 13 LAST YEAR THE STRONGEST GAINS IN DECEMBER WERE POSTED FOR PUBLIC AND COMMERCIAL CONSTRUCTION AND SINGLEFAMILY HOME BUILDING CONTINUED TO RISE MICHAEL CARLINER AN ECONOMIST WITH THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID COMMERCIAL CONSTRUCTION HAS FINALLY TURNED AROUND AND ALTHOUGH THERE WAS NO RECOVERY IN MULTIFAMILY HOUSING RECENT BUILDING PERMITS INDICATE THIS SHOULD IMPROVE IN THE NEXT FEW MONTHS ALL FIGURES ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9402020195 940202 LEISURE & ARTS THE GALLERY THE ART OF THE DEAL BY ALISON WOODS JASON SIMON IS AN ART CURATOR OBSESSED WITH GAMBLING HE'S FASCINATED BY POOL BLACKJACK AND POKER SEVENCARD STUD HILO AND TEXAS HOLD 'EM ARE THE NAMES OF HIS GAMES HE CAN TELL YOU WHO INVENTED THE ROULETTE WHEEL IT LIKELY WAS BLAISE PASCAL THE 17THCENTURY PHILOSOPHER WHO MADE A NOTORIOUS WAGER BACKING RELIGIOUS FAITH OVER ATHEISMNOTHING TO LOSE EVERYTHING TO GAIN AND INSISTS THAT PREHISTORIC MAN SAT IN CAVES THROWING BONES IN AN ALLEY OOP VERSION OF CRAPS SO EARNEST AND INFECTIOUS IS MR SIMON'S BELIEF IN THE BEAUTY OF PLAY THAT HE HAS MANAGED TO CONVINCE THE OWNERS OF A MEDIUM TO HIGHSTAKES POKER CLUB IN MANHATTAN TO LET HIM CURATE AN ART SHOW THERE THE MAYFAIR CLUB IS AS UNLIKELY A SPOT FOR A CONTEMPORARY ART EXHIBIT AS CAN BE FOUND IN NEW YORK CITY BILLING ITSELF AS A MEMBERSHIPBASED ESTABLISHMENT SPECIALIZING IN CARDS IT'S THE KIND OF PLACE YOU WOULD EXPECT TO BE ILLEGAL AND UNDERGROUND IT ISN'T PLAYERS PAY 100 A YEAR TO JOIN AND A NIGHTLY FEE SEVEN DAYS A WEEK AND AS LATE AS DAWN TO GET INTO THE ACTION THE FEE DEPENDS ON THE STAKES OF THE GAME AND IT CAN COST AS MUCH AS 10000 TO ANTE UP THE HOUSE TAKES NO PART OF THE GAMBLING HANDLE THERE'S NO ALCOHOL SOLD ON THE PREMISES AND NO CASH ON THE TABLES THE CLUB IS CLEAN AND WELLLIGHTED AND EVEN ADVERTISES IN THIS NEWSPAPER NOW IT HAS OPENED ITS DOORS TO ART ENTHUSIASTS HOSTING JASON SIMON'S MAYFAIR SHOW WHICH IS NOT FOR MEMBERS ONLY THE SHOW FEATURING ART WITH GAMBLINGRELATED THEMES IS OPEN TO THE PUBLIC FROM 7 PMTO 4 AM EVERY DAY THROUGH FEB 12 WITH SOME OF THE ART ON VIEW DURING MORE NORMAL HOURS AT THE AMERICAN FINE ARTS CO GALLERY IN SOHO 22 WOOSTER ST THE BULK OF THE MAYFAIR SHOW CONSISTING OF PAINTINGS PRINTS PHOTOGRAPHS AND DRAWINGS IS DISPLAYED THROUGHOUT THE POKER CLUB'S THREE GAMING ROOMS AND THE LOUNGE IN ITS HEADQUARTERS AT 51 E 25TH ST MAYFAIR MEMBERS HAVE TAKEN THIS IN THEIR STRIDE PLAYERS BARELY LOOK UP FROM THEIR CARDS WHEN ART MAVENS COME TO GAWK AT PICTURES OR AT THE TABLES IT'S PECULIAR VIEWING ART IN A ROOM IN WHICH DOZENS OF PEOPLE ARE INTENTLY FOCUSED ON A GAME OF CHANCE CLICKING THEIR CHIPS AND COMMUNICATING IN A VIRTUAL SECRET LANGUAGE WHILE THE PLAYERS MURMUR ABOUT FLOPS AND THE TURN AND THE RIVER THE MAYFAIR STAFF NOISELESSLY SERVES THEM PLATES OF FOOD ON TABLESIDE TRAYS OR DELIVERS COFFEE OR CIGARETTES IN THAT ENVIRONMENT THE ART IS NOT THE FIRST THING THAT STRIKES YOU MR SIMON HIMSELF ADMITS IT'S A SOTTO VOCE PRESENCE MR SIMON WHO ATTENDED THE WHITNEY MUSEUM'S INDEPENDENT STUDY PROGRAM AND TEACHES AT SARAH LAWRENCE COLLEGE IS WELLVERSED IN PSYCHOANALYTIC AND SOCIOLOGICAL THEORIES OF GAMBLING HE HAS ROUNDED UP ARTWORK THAT ILLUSTRATES WHAT HE SEES AS THE SHARED CONCERNS OF ARTISTS AND GAMBLERS THE MOST OBVIOUS BEING THEIR EXISTENCE OUTSIDE MAINSTREAM SOCIETY AND THE EVERPRESENT POSSIBILITY OF FINANCIAL RUIN MR SIMON EVEN IS INTERESTED IN THE FUNCTION OF GAMBLING CLUBS AND CASINOS AS SMALL PRIVATE ECONOMIES A NOTION BASED ON ROBERT REICH'S WRITINGS THE MAYFAIR SHOW INCLUDES BLACKANDWHITE SILKSCREEN PRINTS BY ASHLEY BICKERTON WHICH INCORPORATE GOOD AND EVIL IMAGES RESEMBLING PLAYINGCARD SUITS PAINTINGS BY DAVID SMITH WHO USES METHODS OF SHUFFLING IMAGES TO DETERMINE THE DESIGN OF HIS WORK AND PAINTINGS BY THE AUSTRIAN HANS WEIGAND HIMSELF A PLAYER OF HIGHSTAKES BLACKJACK ALSO IN THE SHOW ARE A PAINTING BY ADAM SIMON ON A PAGE FROM THE DAILY RACING FORM AND MOYRA DAVEY'S HUGE PHOTOGRAPHS OF DETAILS FROM 50 AND 100 BILLS AN EXHIBITION CATALOGUE FEATURES THE TRANSCRIPT OF A DIALOGUE BETWEEN A PSYCHOANALYST AND A GAMBLER ON THE SUBJECT OF BLUFFING TO COMPLETE THE CIRCUIT BY EXHIBITING THE GAMBLING WORLD IN THE BOSOM OF THE ART WORLD MR SIMON HAS INSTALLED THE WORK OF MAYFAIR CLUB MEMBER MELISSA HAYDEN AT AMERICAN FINE ARTS MS HAYDEN IS A PHOTOGRAPHER WHO BECAME A COMPETITIVE CARD PLAYER IN THE COURSE OF TAKING A SERIES OF PICTURES OF PROFESSIONAL POKER CHAMPIONS HER SUBJECTS INCLUDE POKER LEGENDS DOYLE BRUNSON TWOTIME WINNER OF THE WORLD SERIES OF POKER HELD EACH YEAR IN LAS VEGAS WITH THE WINNER TAKING A POT OF ABOUT 1 MILLION AND AUTHOR OF THE SUPER SYSTEM OF POKER THE BIBLE OF TEXAS HOLD 'EM AND SAILOR ROBERTS ANOTHER WORLD SERIES WINNER MS HAYDEN ALSO HAS CREATED AN INSTALLATION OF 120 POLAROID PHOTOS SHOWING SHE SAYS THE WAY LIFE IMITATES POKER AND POKER IMITATES LIFE FOR ALL THE HIFALUTIN THEORY BEHIND THE MAYFAIR SHOW IT SPRANG FROM A SIMPLE IMPULSE OF AESTHETIC GENEROSITY A DESIRE TO GIVE MAYFAIR MEMBERS SOMETHING PLEASANT TO LOOK AT IN THE ROOMS WHERE THEY SPEND SO MUCH TIME WHEN MR SIMON BEGAN HANGING AROUND THE MAYFAIR ABOUT TWO YEARS AGO PLAYING IN THE BABY HOLD 'EM GAMES HE NOTICED THAT THE CLUB'S WALLS WERE UNADORNED THE FIRST THING YOU WERE STRUCK WITH WAS THIS IS A BARREN CLINICAL ENVIRONMENT IT'S NOT A KIND SPACE SAYS MR SIMON AS A CURATOR I THOUGHT I COULD MAKE IT A LITTLE MORE HOSPITABLE TO THE PEOPLE WHO STOOD TO LOSE HUGE AMOUNTS OF MONEY THERE SO HE APPROACHED CLUB OWNERS FRANK AND MARY LOU KAVALER SHE'S A RETIRED ART TEACHER ABOUT HANGING A SHOW THERE AND THEY LIKED THE IDEA WE HAVE TROUBLE COVERING THE WALLS MR KAVALER SAYS AND THESE PEOPLE SHOULD BE EXPOSED TO OTHER THINGS MR KAVALER'S HOPES OF AWAKENING A LOVE OF CONTEMPORARY ART IN THE MAYFAIR MEMBERS SEEM UNLIKELY TO BE REALIZED HOWEVER WHEN ASKED WHAT THEY THINK ABOUT THE ART THEIR RESPONSE IS LARGELY NEGATIVE A DISCLAIMER HAS BEEN POSTED NEXT TO ONE OF THE ASHLEY BICKERTONS EVER SINCE SOME MEMBERS TOOK OFFENSE AT SWASTIKA IMAGES IN THE PRINT BUT THE REACTION OF MAYFAIR CLUB MEMBER KENNY ENGELS MAY BE MORE TYPICAL OF THE PLAYERS WHOSE GAMES AFTER ALL DEMAND UNDIVIDED CONCENTRATION I THINK THE ART IS COOL MR ENGELS SAYS BUT I HAVE TO ADMIT I DIDN'T EVEN NOTICE IT UNTIL IT HAD BEEN UP FOR TWO WEEKS MS WOODS IS A COPY EDITOR AT DOW JONES NEWS SERVICE IN NEW YORK 9402020194 940202 WORLD MARKETS STOCKS IN TOKYO ASIAN EXCHANGES SCORE GAINS WHILE EUROPE CATCHES ITS BREATH AFTER BULL RUN A WALL STREET JOURNAL NEWS ROUNDUP A CORRECTION HERE AND THERE TUESDAY SLOWED BUT DIDN'T REVERSE THE GLOBAL BULL RUN IN STOCKS TYPIFYING ACTIVITY ON ASIAN EXCHANGES TOKYO SHARES SCORED SOLID GAINS IN EXTREMELY HEAVY VOLUME BUOYED BY CONTINUED BUYING BY FOREIGN INVESTORS PRICES ON MOST EUROPEAN BOURSES ENDED MIXED AS DID LONDON WHERE INVESTORS SNAGGED PROFITS AMONG BLUE CHIPS FOLLOWING THE PREVIOUS DAY'S RALLY WHILE THE BROADER MARKET CHALKED UP GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11901 UP 041 REFLECTING HIGHER ASIA/PACIFIC MARKETS AND LOWER AMERICAN AND EUROPEAN MARKETS HEAVY MACHINERY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13103 UP 439 OR 35 WITH HITACHI CONSTRUCTION MACHINERY OF JAPAN POSTING AN 18 GAIN IN ITS LOCAL CURRENCY TOYS STOCKS TRAILED AT 8748 DOWN 244 OR 27 WITH ELECTRONIC ARTS OF THE US SLIDING 61 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SOARED 147124 POINTS OR 78 ON MONDAY CLIMBED 18722 TO 2041634 IN TRADING WEDNESDAY THE NIKKEI FELL 25612 POINTS TO CLOSE THE MORNING SESSION AT 2016022 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 950 MILLION SHARES THE HIGHEST LEVEL IN 10 MONTHS AND UP FROM 8394 MILLION SHARES A DAY EARLIER GAINERS CLOBBERED LOSERS 677347 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SWELLED 10140 POINTS MONDAY ADVANCED 1388 TO 164310 PARTICIPANTS WERE SURPRISED BY THE STRONG TURNOVER OVERSEAS INVESTORS SOME OF WHOM MISSED OUT ON MONDAY'S RUNUP GENERALLY BOUGHT SHARES AND INDIVIDUALS RETURNED TO JUMP ONTO THE BUYING BANDWAGON WHILE JAPANESE CORPORATE AND INSTITUTIONAL INVESTORS SOLD POSITIONS TAKING PROFITS AHEAD OF THE MARCH 31 FISCAL YEAR END THE SUSTAINED UPTURN WAS A RESULT OF JAPANESE PARLIAMENTARY PASSAGE LAST WEEKEND OF POLITICALREFORM BILLS WHICH FREED POLITICIANS TO FOCUS ONCE AGAIN ON MEASURES TO PERK UP THE SAGGING ECONOMY WHICH COULD BE UNVEILED THURSDAY THE BEST PERFORMERS IN THE TOKYO SESSION WERE IN THE COMMUNICATIONS AND BROKERAGEFIRM SECTORS COMMUNICATIONS SHARES GAINED ON EXPECTATIONS THAT THE JAPANESE GOVERNMENT WILL INVEST MORE IN SOCIAL INFRASTRUCTURE SUCH AS COMPUTERS AND TELECOMMUNICATIONS WHILE THE BROKERAGE SHARES ROSE ON HOPES FOR CONTINUED HEAVY TRADING ACTIVITY THAT WILL BOLSTER THEIR EARNINGS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 103 POINTS TO 34815 THE FT 30STOCK INDEX EDGED DOWN 04 POINT TO 26769 VOLUME WAS A HEAVY 108 BILLION SHARES COMPARED WITH 9892 MILLION SHARES A DAY EARLIER DESPITE THE FT 100'S DECLINE IT FINISHED OFF THE SESSION'S WORST LEVELS WHEN IT WAS DOWN 208 POINTS BLUE CHIPS OPENED STRONGLY WITH THE MAIN INDEX SCORING A 22POINT GAIN BUT WITH LITTLE FRESH NEWS TO DRIVE SENTIMENT THE MOMENTUM FALTERED LATER PROFITTAKING EARLY ON WALL STREET AND ON SOME EUROPEAN BOURSES ALSO PRESSURED LONDON BLUE CHIPS YET THE FTSE 250 INDEX ADVANCED 211 POINTS TO 41054 SHOWING THAT UNDERLYING DEMAND FOR EQUITIES REMAINED INTACT AND THAT THE DECLINE IN THE BENCHMARK 100STOCK INDEX WAS A TECHNICAL CORRECTION TO MONDAY'S 444POINT GAIN IN FRANKFURT STOCK PRICES CLOSED MIXED TO SLIGHTLY HIGHER AFTER FAILING TO HOLD ON TO EARLY GAINS FOLLOWING THE PREVIOUS DAY'S 21 SURGE THE DAX 30STOCK INDEX ROSE 222 POINTS TO 217967 LITTLE CORPORATE NEWS SURFACED TO INFLUENCE THE MARKET WHICH TOOK CUES FROM LONDON AND NEW YORK IN PARIS PRICES FINISHED NARROWLY MIXED IN LACKLUSTER TRADING AS INVESTORS CAUGHT THEIR BREATH FOLLOWING MONDAY'S RECORDBREAKING ADVANCE IN AMSTERDAM EQUITIES ALSO ENDED MIXED WITH BLUE CHIPS WEAKER BECAUSE OF SELECTIVE PROFITTAKING A LOWER DOLLAR IN CURRENCY DEALINGS AND SOFTNESS IN SOME OTHER BIG BOURSES IN MILAN SHARES FELL AS INVESTORS COLLECTED PROFITS AND CONSOLIDATED POSITIONS FOLLOWING A SPATE OF RECORDSETTING SESSIONS IN STOCKHOLM STOCKS FELL ACROSS THE BOARD IN A CORRECTION FROM THE PREVIOUS DAY'S RECORD HIGH IN MADRID THE MARKET DROPPED SHARPLY PARTLY ON PROFITTAKING FOLLOWING RECENT BIG GAINS AND PRIMARILY BY BANCO ESPANOL DE CREDITO ON ITS FIRST DAY OF TRADING FOLLOWING A SPANISH GOVERNMENT TAKEOVER BANESTO SHARES PLUNGED 57 TO 855 PESETAS 611 AND IN ZURICH INVESTORS SNAGGED PROFITS IN SOME BLUE CHIPS SENDING THE MARKET DOWN AFTER A STRING OF STRONG SESSIONS IN MEXICO CITY STOCKS ROSE TO THEIR FOURTH RECORD HIGH IN A ROW AFTER SEESAW TRADING IN WHICH A MIDDAY ROUND OF PROFITTAKING RAN OUT OF STEAM BRAZILIAN STOCKS MEANWHILE SOARED AS INVESTORS SHOWED CONFIDENCE IN THE GOVERNMENT'S ECONOMIC PACKAGE THE SAO PAULO STOCK EXCHANGE'S BOVESPA INDEX GAINED 8631 POINTS OR 117 TO 82686 THE RIO DE JANEIRO EXCHANGE ADDED 3710 POINTS OR 137 TO 30734 BOTH EXCHANGES SAID THEY WERE THE BIGGEST INCREASES SINCE NOVEMBER 1992 FINANCE MINISTER FERNANDO HENRIQUE CARDOSO SAID YESTERDAY THAT CONGRESSMEN HAVE ASSURED HIM THEY WOULD SUPPORT HIS ECONOMICSTABILIZATION PLAN IN SYDNEY PRICES ENDED MIXED AFTER PROFITTAKING CAUSED SHARP DECLINES FROM AN EARLY BULL RUN IN RESPONSE TO STRENGTH IN THE PRICE OF GOLD AND IN OVERSEAS STOCK MARKETS THAT POWERED THE ALLORDINARIES INDEX TO AN ALLTIME INTRADAY HIGH OF 23276 BREAKING THE TRADING RECORD OF 23125 SET SEPT 21 1987 THE INDEX HAS CLIMBED 63 THIS YEAR IN HONG KONG SHARES RALLIED 3 AS SENTIMENT TURNED EVEN MORE BULLISH FOLLOWING STRONG DAYEARLIER GAINS IN TOKYO LONDON AND NEW YORK STOCKS ALSO FOUND SUPPORT FROM EXPECTATIONS OF FUNDS FLOWING INTO THE HONG KONG BOURSE AHEAD OF THE CHINESE NEW YEAR CELEBRATIONS AND HOPES FOR A SINOBRITISH FINANCING AGREEMENT FOR THE COLONY'S AIRPORT PROJECT IN TAIPEI EQUITIES ADVANCED 1 IN HEAVY TRADING EVEN AFTER PROFITTAKING PULLED THE MARKET DOWN FROM HIGHER LEVELS FOLLOWING ITS 16 JUMP THE PREVIOUS DAY CONSTRUCTION ISSUES SOARED 36 LEADING WINNERS IN SEOUL STOCKS JUMPED 15 ON A POWERFUL SURGE BY LARGE BLUE CHIPS HEAVILY WEIGHTED IN THE MAIN INDEX EXPLAINING WHY DECLINING ISSUES OUTNUMBERED GAINERS 451345 THE STOCK MARKET STABILIZATION FUND SOLD BLUE CHIPS TO SLOW THE INDEX'S RISE BUT THE INTERVENTION WAS INEFFECTIVE AND ONLY WIDENED FURTHER THE PRICE GAPS BETWEEN BIG AND SMALL STOCKS AS INSTITUTIONS UNLOADED THE INEXPENSIVE ISSUES TO BUY BIG ONES IN WELLINGTON THE MARKET RESPONDED TO POSITIVE ECONOMIC NEWS TO END HIGHER FOR THE FOURTH DAY IN A ROW POSTING A 11 INCREASE IN THE MAIN INDEX THE GAINS WERE SPURRED BY A REPORT THAT NEW ZEALAND'S GROSS DOMESTIC PRODUCT EXPANDED 42 IN THE YEAR ENDED SEPT 30 AND THAT GROWTH OF 23 IN THE FISCAL FOURTH QUARTER SIGNIFICANTLY EXCEEDED EXPECTATIONS FOR A 1 RISE BUT IN MANILA SHARES SANK 14 MARKING THE THIRD STRAIGHT DECLINE ON CONTINUED SELLING FOLLOWING LAST FRIDAY'S ANNOUNCEMENT OF PRICE INCREASES FOR PETROLEUM PRODUCTS AND ELECTRICITY RATES IN BANGKOK STOCKS PLUMMETED 25 IN SLUGGISH CHOPPY TRADING 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 9402020193 940202 INTERNATIONAL PERU'S PRIVATIZATION OF 2 PHONE FIRMS WILL TEST INVESTORS' INTEREST IN COUNTRY BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL LIMA PERU FIVE GROUPS LED BY FOREIGN TELEPHONE CONCERNS HAVE SAID THEY WILL TENDER BIDS FOR CONTROLLING STAKES IN TWO PHONE COMPANIES OPERATED BY THE PERUVIAN GOVERNMENT THE GOVERNMENT'S SALE OF A CONTROLLING INTEREST IN ITS WHOLLY OWNED EMPRESA NACIONAL DE TELECOMUNICACIONES DEL PERU OR ENTEL AND ITS 20OWNED COMPANIA PERUANA DE TELEFONOS OR CPT IS BEING VIEWED AS A BELLWETHER OF INVESTOR INTEREST IN PERU'S RESURGENT ECONOMY ALTHOUGH PERU'S PHONE SYSTEM IS UNDERDEVELOPED EVEN BY LATIN AMERICAN STANDARDS ANALYSTS SAY THAT THE TWO PHONE COMPANIES WHICH WILL BE SOLD AS A PACKAGE COULD FETCH FROM 300 MILLION TO 500 MILLION BIDDING WILL TAKE PLACE FEB 28 ONE OF THE GROUPS THAT HAS REGISTERED TO BID IS MADE UP OF SOUTHWESTERN BELL CORP OF SAN ANTONIO KOREA TELECOM OF SEOUL SOUTH KOREA GRUPO CARSO A CONGLOMERATE FROM MEXICO CITY DAEWOO TELECOM ALSO OF SEOUL AND BANCO DE CREDITO OVERSEAS LTD A BAHAMASREGISTERED CORPORATION THAT IS BELIEVED TO REPRESENT PERUVIAN INVESTORS ALSO REGISTERING IS A CONSORTIUM CONSISTING OF GTE CORP STAMFORD CONN COMPANHIA PORTUGUESA RADIO MARCONI SA OF LISBON AND EMPRESA BRASILEIRA DE TELECOMUNICACOES OF SAO PAULO BRAZIL ANOTHER GROUP IS COMPOSED OF AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK GODOY & BARCLAY SAB A PERUVIAN BROKERAGE FIRM AND MANUEL PABLO OLAECHEA ALVAREZ CALDERON A REPRESENTATIVE OF PRIVATE PERUVIAN INVESTORS ALSO REGISTERING IS A CONSORTIUM INCLUDING FRANCE TELECOM OF PARIS AND SOCIETA FINANZIARIA TELEFONICA OF TORINO ITALY THE FIFTH GROUP INCLUDES TELEFONICA DE ESPANA SA OF MADRID CERVECERIA BACKUS & JOHNSTON SA PERU'S LARGEST BEER MAKER BANCO WIESE LTD PERU'S SECONDLARGEST BANK AND GRANA Y MONTERO SA A PERUVIAN CONSTRUCTION CONCERN THE COMPANIES HAD UNTIL MONDAY TO REGISTER TO BID GOVERNMENT OFFICIALS HOPE THAT THE SELLOFF WILL BECOME A BREAKTHROUGH DEAL FOR A COUNTRY FINALLY OVERCOMING A LONG SLUMP BROUGHT ON BY ECONOMIC MISMANAGEMENT AND POLITICAL TURMOIL WE THINK THIS SALE WILL MAKE MORE INVESTORS AWARE THAT THERE ARE EXCITING OPPORTUNITIES IN PERU SAID JORGE MELO VEGA ONE OF THE OFFICIALS WORKING ON THE PRIVATIZATION LAST YEAR PERU'S ECONOMY GREW AT A STRONG RATE OF 68 WHILE INFLATION WAS TAMED TO 40 FROM 7000 JUST A FEW YEARS AGO MOREOVER TERRORIST ATTACKS BY MAOIST SHINING PATH GUERRILLAS DECLINED SHARPLY AS MUCH OF THE MOVEMENT'S LEADERSHIP WAS PUT BEHIND BARS INVESTOR INTEREST IN THE PHONE PRIVATIZATION HAS BEEN REFLECTED IN THE RUNUP OF THE STOCK OF CPT WHICH IS LISTED ON THE LIMA STOCK EXCHANGE CPT HAS RISEN MORE THAN 30 DURING THE PAST 30 DAYS CPT WHICH PROVIDES LOCAL PHONE SERVICE TO LIMA ALSO HAS A CABLE TELEVISION LICENSE ENTEL PROVIDES LONGDISTANCE PHONE SERVICES FOR THE ENTIRE COUNTRY AS WELL AS LOCAL SERVICE OUTSIDE OF LIMA THE GOVERNMENT PLANS TO SELL 20 OF ITS CPT SHARES THROUGH THE PRIVATIZATION AND TO ALLOW THE NEW OWNER TO AMASS A CONTROLLING STAKE BY MAKING A 15 INCREASE IN THE COMPANY'S CAPITAL THE GOVERNMENT WILL SELL OFF 35 OF ITS ENTEL SHARES TO ENSURE THAT THE PURCHASING GROUP OBTAINS OPERATING CONTROL ENTEL'S BYLAWS PROBABLY WILL BE AMENDED TO GIVE SPECIAL VOTING RIGHTS TO THE SHARES SOLD IN THE PRIVATIZATION THE REMAINING 65 OF THE GOVERNMENT'S ENTEL STOCK WILL BE PUT IN A SPECIAL TRUST AND SOLD THROUGH A SECONDARY STOCK OFFERING LATER THE CONSORTIUM THAT WINS THE BIDDING WILL HAVE A FORMIDABLE TURNAROUND JOB AHEAD OF IT LATIN AMERICA IS KNOWN FOR WRETCHED PHONE SERVICE BUT PERU HOLDS THE DUBIOUS DISTINCTION OF HAVING THE LOWEST DISTRIBUTION OF TELEPHONES IN THE REGION WITH JUST 25 LINES PER 100 RESIDENTS PERU ALSO HAS SIX PEOPLE WAITING FOR LINES FOR EVERY 10 LINES IN SERVICE THE LARGEST BACKLOG ON THE CONTINENT THE NEW OWNER OF THE PHONE SYSTEM WILL BE REQUIRED TO ADD ONE MILLION LINES IN THE NEXT FIVE YEARS TO A SYSTEM THAT CURRENTLY HAS ONLY 600000 LINES BUT THE WINNING BIDDER WILL HAVE A MONOPOLY ON NATIONAL AND LONGDISTANCE SERVICE UNTIL 1998 THE PERUVIAN GOVERNMENT ALSO PLANS TO SELL THIS YEAR INTERESTS IN A HOST OF OTHER COMPANIES INCLUDING A CEMENT MAKER SOME ELECTRIC UTILITIES AND SEVERAL HOTELS IN ALL THE GOVERNMENT HOPES TO EARN 3 BILLION TO 4 BILLION FROM THE PRIVATIZATIONS 9402020192 940202 ABREAST OF THE MARKET DOW SLIPS AFTER 3 HIGHS IN A ROW AS TRADERS RETREAT TAKING PROFITS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STEEP LOSSES IN THE BOND MARKET SMOTHERED A THREEDAY RALLY IN STOCKS AFTER SETTING THREE STRAIGHT HIGHS AND SURGING 70 POINTS SINCE LAST WEDNESDAY THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 1435 OR 036 TO 396401 DECLINING ISSUES LED ADVANCERS 1148 TO 961 ON THE NEW YORK STOCK EXCHANGE VOLUME WAS ACTIVE AT 322440000 SHARES VS 322750000 ON MONDAY THE AVERAGE PRICE PER SHARE FELL NINE CENTS THE NASDAQ COMPOSITE INDEX WHICH TOPPED 800 YESTERDAY FOR THE FIRST TIME DECLINED 323 OR 040 TO 79724 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX THOUGH MANAGED TO GAIN 031 OR 006 TO 48599 A SECOND STRAIGHT HIGH THE STANDARD & POOR'S 500 STOCK INDEX LOST 199 OR 041 TO 47962 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 066 OR 025 TO 26644 AND THE DOW JONES EQUITY MARKET INDEX FELL 168 OR 037 TO 45420 EACH HAD SET THREE CONSECUTIVE RECORDS BEFORE YESTERDAY THE MARKET'S WEAK TONE CAME EVEN AS INVESTORS RECEIVED MORE ENCOURAGING NEWS ON CORPORATE DIVIDENDS STANDARD & POOR'S REPORTED THAT 185 COMPANIES RAISED THEIR DIVIDENDS LAST MONTH COMPARED WITH 146 A YEAR EARLIER SIX COMPANIES LOWERED THEIR DIVIDENDS DOWN FROM NINE IN JANUARY 1993 FIVE COMPANIES OMITTED THEIR DIVIDENDS IN JANUARY COMPARED WITH 11 A YEAR EARLIER GAP SLUMPED 1 3/8 TO 40 7/8 SANFORD C BERNSTEIN & CO REDUCED ITS RATING ON THE SAN FRANCISCO APPAREL RETAILER TO HOLD FROM BUY THE BROKERAGE COMPANY SAID GAP SHARES WHICH ARE NEAR THEIR 52WEEK HIGH AREN'T LIKELY TO RISE SIGNIFICANTLY AT THIS TIME ALLEGHENY LUDLUM LOST 1 1/2 TO 20 3/4 AFTER DROPPING 1 1/2 MONDAY ON DISAPPOINTING FOURTHQUARTER EARNINGS ANALYSTS HAD NEGATIVE COMMENTS YESTERDAY INCLUDING JP MORGAN SECURITIES WHICH LOWERED A RATING ON THE PITTSBURGH SPECIALTYSTEEL COMPANY'S SHARES TO UNDERPERFORM FROM MARKET PERFORMER PARAMOUNT COMMUNICATIONS ADDED 1/4 TO 79 7/8 VIACOM CLASS B AMEX FELL 1 1/8 TO 34 1/8 AND QVC NETWORK NASDAQ ADDED 3/4 TO 44 3/4 AFTER THE MARKET CLOSED BOTH VIACOM AND QVC SWEETENED THE TERMS OF THEIR BIDS FOR PARAMOUNT AMGEN NASDAQ LOST 1 3/4 TO 47 AMID RUMORS THAT SALES FROM ITS FLAGSHIP NEUPOGEN PRODUCT WERE LOWER THAN EXPECTED IN THE FOURTH QUARTER BUT LATE IN THE DAY THE THOUSAND OAKS CALIF COMPANY SAID QUARTERLY SALES OF THE PRODUCT ROSE 16 TO 1869 MILLION LEGENT NASDAQ LOST 2 3/4 TO 27 IT HAD INCOME FROM OPERATIONS OF 44 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 COMPARED WITH NET INCOME OF 54 CENTS A YEAR EARLIER ANALYSTS SAID THE HERNDON VA COMPANY'S REVENUE GROWTH WAS WEAKER THAN EXPECTED IN THE QUARTER ROHM & HAAS ADDED 7/8 TO 58 THE PHILADELPHIABASED CHEMICAL MAKER SIGNED A LETTER OF INTENT TO BUY THE PYRIDINE CHEMICAL OPERATIONS OF ST LOUISBASED MONSANTO TERMS WEREN'T DISCLOSED MONSANTO ROSE 2 TO 79 1/4 ST PAUL COS DROPPED 2 TO 86 3/8 EVEN THOUGH THE ST PAUL MINN INSURANCE COMPANY INCREASED ITS QUARTERLY DIVIDEND TO 75 CENTS FROM 70 CENTS EFFECTIVE WITH A PAYOUT TO BE MADE ON APRIL 15 ITS BOARD ALSO RECOMMENDED THAT HOLDERS APPROVE A 2FOR1 STOCK SPLIT BOND INVESTORS WERE RATTLED BY A PAIR OF ECONOMIC READINGS ONE FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SHOWING GAINS IN MANUFACTURING CONDITIONS AND ANOTHER FROM THE COMMERCE DEPARTMENT SHOWING AN INCREASE IN DECEMBER CONSTRUCTION SPENDING IN ADDITION FEDERAL RESERVE BOARD VICE CHAIRMAN DAVID MULLINS SAID HE WILL RESIGN ONCE AGAIN THE MARKET IS SENSITIVE TO WEAKNESS IN BONDS SAID A MARSHALL ACUFF PORTFOLIO STRATEGIST AT SMITH BARNEY SHEARSON HE SAID STOCKS THAT HAD RISEN THE MOST OF LATE WERE AMONG THE BIGGEST LOSERS THE APPROACH OF 4000 IN THE DOW JONES INDUSTRIALS ALSO CONTRIBUTED TO THE MARKET'S SLIDE THAT MAY BE CAUSING PEOPLE TO BACK OFF A LITTLE BIT MR ACUFF SAID THE BUYERS BECOME LESS AGGRESSIVE AND THE SELLERS DO THEIR THING 9402020191 940202 WHO'S NEWS INTERACTIVE INC INTERACTIVE INC HUMBOLDT SD WAYNE L STERN PRESIDENT OF THE MINNESOTA LUNG CENTER WAS ELECTED A DIRECTOR OF THIS MAKER OF PERSONAL COMPUTERBASED MULTIMEDIA PRODUCTS FOR BUSINESS COMMUNICATIONS INCREASING BOARD MEMBERSHIP TO SEVEN 9402020190 940202 WHO'S NEWS ANGELICA CORP ANGELICA CORP ST LOUIS MARTIN SNEIDER PRESIDENT OF EDISON BROTHERS STORES INC WAS ELECTED A DIRECTOR OF THIS UNIFORMRENTAL CONCERN MR SNEIDER 51 YEARS OLD FILLS A VACANCY CREATED BY THE RETIREMENT OF JAMES E STEFOFF 65 WHO STEPPED DOWN AS A DIRECTOR AND EXECUTIVE VICE PRESIDENT 9402020189 940202 ICF SELLS MOST OF CYGNA UNIT FAIRFAX VA ICF KAISER INTERNATIONAL INC SAID IT SOLD SUBSTANTIALLY ALL THE OPERATING BUSINESSES OF ITS CYGNA ENERGY SERVICES UNIT TO GENERAL PHYSICS CORP OF COLUMBIA MD TERMS WEREN'T DISCLOSED CYGNA IN OAKLAND CALIF AND GENERAL PHYSICS PROVIDE ENGINEERING AND OTHER SERVICES TO THE COMMERCIAL NUCLEARPOWER INDUSTRY ICF KAISER AN ENGINEERING CONSTRUCTION AND CONSULTING SERVICES COMPANY SAID IT WILL KEEP THE SUBSIDIARY'S NONNUCLEAR SEISMICENGINEERING BUSINESS 9402020188 940202 BURLINGTON NORTHERN'S SPENDING FORT WORTH TEXAS BURLINGTON NORTHERN RAILROAD SAID IT EXPECTS ITS CAPITAL INVESTMENTS TO INCREASE 26 TO 850 MILLION IN 1994 GERALD GRINSTEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CAPITAL SPENDING TOTALED 676 MILLION LAST YEAR AND THE COMPANY IS SET TO PURCHASE MORE EQUIPMENT THAN EVER THIS YEAR FOR 1994 ABOUT 485 MILLION IS EARMARKED FOR ROADWAY IMPROVEMENTS WHILE 365 MILLION IS TO BE SPENT FOR NEW EQUIPMENT INCLUDING LOCOMOTIVES COVERED GRAIN HOPPER CARS AND ALUMINUM COAL CARS THE RAILROAD IS A UNIT OF BURLINGTON NORTHERN INC 9402020187 940202 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO FRANCIS J MARINO WAS NAMED VICE CHAIRMAN OF THIS CREDIT CARD SERVICES COMPANY MR MARINO 50 YEARS OLD IS CURRENTLY A SENIOR MEMBER OF THE LAW FIRM MAHONEY ADAMS & CRISER HE HASN'T BEEN NAMED TO SAFECARD'S BOARD 9402020186 940202 WHO'S NEWS KENNAMETAL INC KENNAMETAL INC LATROBE PA RICHARD J ORWIG 52 YEARS OLD FORMERLY VICE PRESIDENT AND DIRECTOR OF ADMINISTRATION WAS NAMED CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER OF THE MAKER OF CARBIDE PRODUCTS CERAMICS AND MACHINECUTTING TOOLS HE SUCCEEDS JAMES E MORRISON WHO HAS BEEN ACTING FINANCE CHIEF SINCE MIDAUGUST MR MORRISON CONTINUES AS TREASURER 9402020185 940202 WHO'S NEWS DELTA QUEEN STEAMBOAT CO DELTA QUEEN STEAMBOAT CO NEW ORLEANS LA R ANTHONY MCKINNON 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPANY'S AMERICAN HAWAII CRUISES UNIT A POSITION THAT HAD BEEN VACANT SINCE THE SUBSIDIARY WAS ACQUIRED LAST FALL MR MCKINNON WAS FORMERLY A CONSULTANT FOR GRAYCON GROUP INC OF DALLAS 9402020184 940202 ENTERPRISE REGULATORY PRESSURE ON BANKS BENEFITS SMALL BUSINESS LENDERS COURT THE STRONGER COMPANIES BUT WEAKER ONES STILL FEEL CRUNCH BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SMALLBUSINESS BORROWERS ARE GETTING A BREAK FROM A SOURCE THEY DIDN'T EXPECT GOVERNMENT PRESSURE TOUGHER REGULATORY SCRUTINY OF SMALLBUSINESS LENDING HAS ENCOURAGED SOME BANKS TO CHARGE AS LITTLE AS TWO POINTS BELOW THE PRIME RATE FOR LOANS TO SMALL COMPANIES AUTHORITIES SAY BIG BANKS FEAR THE PERSISTENT PUBLIC PERCEPTION THAT THEY HAVE NEGLECTED SMALL BORROWERS MAY INCREASE POLITICAL OBSTACLES TO THEIR EXPANSION PLANS THE GOVERNMENT PRESSURE IS PAYING OFF AT A TIME WHEN SMALL BUSINESSES ALREADY BENEFIT FROM OTHER FORCES OF COURSE WEAK AND VERY YOUNG COMPANIES STILL REPORT FRUSTRATION AT THE BANK BUT THE STRONGER SMALL AND MIDSIZE FIRMS FOUND LARGE LENDERS BEGAN WOOING THEM A FEW YEARS AGO TO OFFSET SLUGGISH DEMAND AMONG BIG CORPORATE BORROWERS BIG BANKS WERE SEARCHING FOR NEW MARKETS BECAUSE TRADITIONAL MARKETS WERE DRYING UP SAYS JOSEPH NORTON PROFESSOR OF BANKING LAW AT SOUTHERN METHODIST UNIVERSITY IN DALLAS SUCH MARKET FORCES REMAIN A SIGNIFICANT FACTOR PROF NORTON SAYS BUT NOW HE ADDS A PRIORITY OF MOST MAJOR BANKS COMMITTED TO EXPANSION AND GROWTH IS TO BE MORE AGGRESSIVE SMALLBUSINESS LENDERS TO CURRY FAVOR WITH THE GOVERNMENT AND BE IN COMPLIANCE UNDER LAWS SUCH AS THE COMMUNITY REINVESTMENT ACT AT THE SAME TIME BORROWERS OF ALL SORTS ARE BENEFITING FROM DECLINES IN INTEREST RATES THIS IS THE BEST TIME FOR SMALLER COMPANIES THAT HAVE DECENT CREDIT QUALITY TO BORROW SAYS JIM COLLET AN ERNST & YOUNG SENIOR MANAGER OF CORPORATE FINANCE WHO SPECIALIZES IN SMALLER FIRMS COMPETITION FOR SUCH BORROWERS IS UNPRECEDENTED HE SAYS I HAVEN'T SEEN ANYTHING LIKE THIS IN MY CAREER WHILE MR COLLET SAYS REGULATORY PRESSURE ACCOUNTS FOR JUST PART OF BIG BANKS' NEW AGGRESSIVENESS HE AGREES THAT IT IS A NEW AND GROWING INFLUENCE ON SMALLBUSINESS LENDING PRACTICES WHEN BANKS SEEK FEDERAL APPROVAL TO EXPAND HE ADDS THEY WANT TO SHOW THEIR BANK IS A GREAT USERFRIENDLY ORGANIZATION TO WOO KEYS FITNESS PRODUCTS INC NATIONSBANK CORP LAST SEPTEMBER AGREED TO INCREASE THE COMPANY'S CREDIT LINE TO 3 MILLION FROM 2 MILLION AND CUT ITS VARIABLE INTEREST RATE BY ONE PERCENTAGE POINT TO ONE POINT OVER PRIME SAYS TIM CHEN PRESIDENT AND FOUNDER OF THE DALLAS EXERCISEEQUIPMENT DISTRIBUTOR COMPANY SALES LAST YEAR GREW ABOUT 40 TO 20 MILLION MR CHEN SAYS NATIONSBANK IN CHARLOTTE NC WAS ONE OF THREE LARGE BANKS THAT SOLICITED HIS BUSINESS IN 1993 MORE THAN COURTED HIM DURING THE PREVIOUS TWO YEARS COMBINED ONE UNSUCCESSFUL SUITOR A CALIFORNIA BANK HAS SINCE OFFERED TO INCREASE KEYS' CREDIT LINE ANOTHER 1 MILLION REDUCE ITS INTEREST RATE TO THE PRIME RATE AND WAIVE CERTAIN CLOSING FEES LATELY BANKS SEEM WILLING TO DO ANYTHING FOR OUR BUSINESS MR CHEN ADDS EVEN TINY BUSINESSES ARE BENEFITING FROM THE LENDING BONANZA FAMILYOWNED FONTES SALON IN READING PA WHOSE ANNUAL SALES GREW 10 LAST YEAR TO 200000 SWITCHED BANKERS LAST MAY WHEN PENNSYLVANIA NATIONAL BANK & TRUST CO AGREED TO CUT THE INTEREST RATE ON ITS 110000 DEBT NEARLY TWO PERCENTAGE POINTS TO 725 SAYS DUANE CABRERA THE BEAUTY SALON'S MANAGER THE BANK A UNIT OF KEYSTONE FINANCIAL INC ALSO EXTENDED AN UNSECURED 10000 REVOLVING CREDIT LINE SOMETHING NO BANK HAS EVER OFFERED US BEFORE MR CABRERA CONTINUES HE SAYS THE LOWER INTEREST RATE SAVES THE BUSINESS ABOUT 850 A MONTH THE SALON USED THE NEW CREDIT LINE TO MEET PAYROLL TAXES AND WILL ALSO TAP IT TO PURCHASE COMPUTER EQUIPMENT HE SAYS THE BANK WAS VERY WILLING TO ACCOMMODATE US IN ALMOST EVERY WAY MR CABRERA SAYS SOME BIGBANK OFFICERS SAY THEIR STEPPEDUP MARKETING REFLECTS THEIR SUCCESS AT RESOLVING RECESSIONRELATED PROBLEM LOANS AS WELL AS THE IMPROVING ECONOMY SOME OF THEIR STATED REASONING ALSO SEEMS INTENDED TO APPEAL TO POLITICIANS' SYMPATHETIC VIEW OF SMALL BUSINESSES AND THEIR ROLE IN THE RECOVERY SMALL BUSINESS IS AN IMPORTANT ENGINE OF ECONOMIC GROWTH AND JOB CREATION SAYS ALAN MCNALLY CHIEF EXECUTIVE OFFICER OF HARRIS BANKCORP A BANK OF MONTREAL UNIT IN CHICAGO THAT LAST MONTH BEGAN OFFERING SMALLBUSINESS LOANS AT A HALFPOINT BELOW THE PRIME RATE THIS RATE IS GOOD FOR SMALL BUSINESS AND GOOD FOR THE ECONOMY BUT OTHER BANKERS CONCEDE THAT THEY ARE RESPONDING TO RISING REGULATORY PRESSURES MUCH OF THAT PRESSURE COMES FROM THE COMMUNITY REINVESTMENT ACT WHICH GOVERNS LENDING TO LOWINCOME BORROWERS AND AFFECTS BANKS WHEN THEY SEEK FEDERAL APPROVAL SMALLBUSINESS LENDING ADVOCATES HAVE USED HEARINGS RELATED TO THE ACT TO SPOTLIGHT THE SCARCITY OF SMALLBUSINESS LENDING AMONG BIG BANKS IN ADDITION THE CLINTON ADMINISTRATION WANTS TO EXPAND THE ACT TO REQUIRE MORE DETAILED REPORTING OF BANKS' SMALLBUSINESS LENDING ACTIVITY PEOPLE IN COMMUNITYREINVESTMENT ADVOCACY FEEL JOBS AND ECONOMIC DEVELOPMENT ARE JUST AS ESSENTIAL AS HOME LOANS TO REVITALIZING A COMMUNITY SAYS WOODY WIDROW VICE PRESIDENT OF THE NATIONAL COMMUNITY REINVESTMENT COALITION IN WASHINGTON IN 1992 THE FEDERAL RESERVE BOARD HELD PUBLIC HEARINGS ABOUT BANKAMERICA CORP'S PROPOSED ACQUISITION OF SECURITY PACIFIC CORP AT THE HEARINGS A RECURRING THEME WAS THAT IT'S VERY DIFFICULT FOR SMALL BUSINESSES TO GET CONVENTIONAL FINANCING OF 50000 OR BELOW SAYS A BANKAMERICA SPOKESMAN AS A RESULT THE SAN FRANCISCO BANK CREATED A SPECIAL PROGRAM AND MADE 191 MILLION OF SUCH LOANS IN 1993 THE SPOKESMAN SAYS IN EARLY 1993 BANKAMERICA PLEDGED TO LEND 18 BILLION TO SMALL BUSINESSS OVER THREE YEARS OF COURSE FOR PLENTY OF SMALLBUSINESS OWNERS THE SHORTAGE OF FINANCING SEEMS AS ACUTE AS EVER BABY COTTAGE INC A DAYCARE CENTER IN STAMFORD CONN RECENTLY LEARNED THAT ITS BANK LOAN WOULDN'T BE RENEWED BECAUSE THE BUILDING SECURING THE DEBT HAD LOST ABOUT 30 OF ITS VALUE SINCE THE LATE 1980S SAYS OWNER NICK SNOW BANKS ONLY WANT TO MAKE LOANS TO COMPANIES THAT DON'T NEED THEM MR SNOW SAYS HE CLAIMS THAT THE LENDER'S REFUSAL TO EXTEND HIS LOAN THREATENS TO PUT US OUT OF BUSINESS 9402020182 940202 TECHNOLOGY & HEALTH BELL ATLANTIC TELECOMMUNICATIONS SAY PACT IS NEAR FOR PROPOSED COMBINATION BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC SAID YESTERDAY THEY HAVE RESOLVED THE MAJOR ISSUES OF THEIR PROPOSED COMBINATION AND HOPE TO SIGN A DEFINITIVE AGREEMENT WITHIN TWO WEEKS BELL ATLANTIC A REGIONAL BELL TELEPHONE COMPANY PLANS TO ACQUIRE TCI THE NATION'S BIGGEST CABLESYSTEM OPERATOR THEY ARE STILL WRESTLING WITH A NUMBER OF NETTLESOME POINTS IN THEIR MULTIBILLIONDOLLAR TRANSACTION INCLUDING THE CRITICAL QUESTION OF HOW MUCH FINANCIAL PROTECTION TO GIVE TCI SHAREHOLDERS THE COMPANIES WHICH WERE TO HAVE SIGNED A FINAL PACT FOR BELL ATLANTIC'S ACQUISITION OF TCI AND ITS LIBERTY MEDIA SPINOFF BY LAST MONDAY DECLINED TO SET A NEW DEADLINE YESTERDAY THE COMPANIES REFUSED TO SAY WHICH MAJOR ISSUES HAVE BEEN DECIDED ONE EXECUTIVE FAMILIAR WITH THE TALKS SAID BELL ATLANTIC IS MAKING PROGRESS IN IRONING OUT SOME CRUCIAL AREAS LAST OCTOBER BELL ATLANTIC HAD PROPOSED ISSUING 220 MILLION NEW SHARES TO ACQUIRE MOST OF TCI'S ASSETS ESSENTIALLY GUARANTEEING A VALUE OF 54 FOR EACH NEW SHARE BUT THE PARTIES NOW ARE CONSIDERING ELIMINATING THE 54ASHARE FLOOR THIS EXECUTIVE SAID INSTEAD THE COMPANIES ARE CONSIDERING DEVISING A PLAN THAT WOULD GIVE TCI SHAREHOLDERS PRICE PROTECTION ON THE BACK END OF THE DEAL AFTER IT IS COMPLETE THE EXECUTIVE SAID ONE WAY TO ACHIEVE THAT MIGHT BE TO OFFER TCI SHAREHOLDERS A GREATER STAKE IN BELL ATLANTIC AT SOME FUTURE DATE OTHER ISSUES YET TO BE RESOLVED INCLUDE HOW TO VALUE THE OWNERSHIP STAKES THAT TCI AND LIBERTY HAVE IN A PLETHORA OF CABLE CHANNELS INCLUDING THE DISCOVERY CHANNEL ENCORE AND MORE THAN A DOZEN REGIONAL SPORTS NETWORKS THE COMPANIES ARE REPORTEDLY VERY CLOSE TO RESOLVING THE VALUATION ISSUE BELL ATLANTIC TCI AND LIBERTY ALL DECLINED TO COMMENT PEOPLE WHO HAVE BEEN FOLLOWING THE NEGOTIATIONS ATTRIBUTE MOST OF THE DELAYS TO THE SHEER COMPLEXITY OF THE PROPOSAL RATHER THAN TO ANY MAJOR OBSTACLE YOU KNOW A TRANSACTION OF THIS SIZE IS GOING TO TAKE QUITE A BIT OF TIME SAID MARION BOUCHER AN ANALYST AT BEAR STEARNS & CO I THINK EVERYBODY WAS ANTICIPATING THAT IT WAS GOING TO BE A BUMPY ROAD 9402020181 940202 WHO'S NEWS CABOT OIL & GAS CORP CABOT OIL & GAS CORP HOUSTON KIRK O KUWITZKY WAS NAMED VICE PRESIDENT OF MARKETING AT THIS NATURALGAS PRODUCER AND MARKETER MOST RECENTLY HE HAD BEEN VICE PRESIDENT OF MARKETING AT ENRON GAS MARKETING A UNIT OF ENRON CORP AND HE SUCCEEDS RALPH D ROBINSON WHO RESIGNED LAST YEAR 9402020180 940202 WHO'S NEWS SALOMON HIRES KLOTZ TO FILL NEW POSITION IN DERIVATIVES AREA NEW YORK IN AN EFFORT TO BOLSTER ITS DERIVATIVES BUSINESS SALOMON BROTHERS INC HIRED RICHARD KLOTZ AWAY FROM MERRILL LYNCH & CO TO BECOME DIRECTOR OF ITS FIXEDINCOME DERIVATIVES RESEARCH OPERATION A NEW POSITION MR KLOTZ RESIGNED AS HEAD OF MORTGAGEBACKED SECURITIES RESEARCH AT MERRILL LYNCH ON FRIDAY MERRILL LYNCH SAID IT HAD NO IMMEDIATE PLANS TO REPLACE THE FORMER MANAGING DIRECTOR AND DECLINED TO ELABORATE ON MR KLOTZ'S DEPARTURE SALOMON BROTHERS A UNIT OF SALOMON INC SAID MR KLOTZ WILL REPORT TO TOM KLAFFKY MANAGING DIRECTOR IN CHARGE OF BOND PORTFOLIO ANALYSIS A SPOKESMAN FOR SALOMON SAID MR KLOTZ WILL BEGIN WORK ON MONDAY HIS EXPERIENCE IN A WIDE VARIETY OF FIXEDINCOME SECURITIES INCLUDING DERIVATIVES ALLOWS US TO INTEGRATE DERIVATIVES RESEARCH INTO THE MAINSTREAM OF OUR OVERALL FIXEDINCOME BUSINESS A SALOMON BROTHERS SPOKESMAN SAID IT'S UNFORTUNATE THAT MERRILL LYNCH LOST SOMEONE OF HIS CALIBER SAID STEVEN LAZARUS AN EXECUTIVE RECRUITER WITH MARIASCHIN & CO HE SHOULD ENHANCE THE COMPANY'S DERIVATIVES OPERATIONS BECAUSE OF HIS STRONG BACKGROUND IN RESEARCH MR KLOTZ ALSO BRINGS A POTENT STATISTICAL AND THEORETICAL BACKGROUND TO SALOMON INCLUDING EXTENSIVE ACADEMIC TRAINING IN MATHEMATICS AS DERIVATIVES BECOME INCREASINGLY ARCANE ANALYSTS BELIEVE THAT ACADEMIC AND MATHEMATICAL EXPERTISE WILL BECOME MORE HIGHLY PRIZED MEANWHILE MORGAN STANLEY GROUP INC HIRED WILLIAM LEVY 36 YEARS OLD AS VICE PRESIDENT IN ITS GLOBAL DERIVATIVES GROUP MR LEVY WHO RESIGNED FROM KIDDER PEABODY & CO LAST WEEK WILL BE RESPONSIBLE FOR DISTRIBUTION OF OVERTHECOUNTER EQUITY PRODUCTS A MORGAN STANLEY SPOKESMAN SAID MR LEVY WOULD FOCUS HIS ATTENTION ON MARKETING TIMELY CUSTOMIZED OPTIONS SWAPS AND BASKETS TO THE FIRM'S CLIENTS KIDDER PEABODY IS A UNIT OF GENERAL ELECTRIC CO 9402020179 940202 WHO'S NEWS APPLE COMPUTER INC APPLE COMPUTER INC CUPERTINO CALIF B JURGEN HINTZ 51 WAS ELECTED TO THE BOARD OF THIS COMPUTER COMPANY INCREASING THE BOARD TO SEVEN MEMBERS MR HINTZ IS CHIEF EXECUTIVE OFFICER OF CARNAUDMETALBOX SA AN ANGLOFRENCH PACKAGING GROUP 9402020178 940202 TECHNOLOGY & HEALTH COMPAQ IS EXPECTED TO UNVEIL ITS ENTRY IN THE CROWDED SUBNOTEBOOK' MARKET BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP IS EXPECTED TO INTRODUCE NEXT WEEK ITS FIRST SUBNOTEBOOK COMPUTER JOINING A THRONG OF COMPETITORS HOPING FOR A SLICE OF PORTABLE COMPUTING'S HOTTEST NICHE ACCORDING TO ANALYSTS AND TRADEPRESS REPORTS COMPAQ'S MACHINE WITH THE CODE NAME AERO WILL RESEMBLE OTHER SUBNOTEBOOK MODELS WITH A WEIGHT OF ABOUT 35 POUNDS A BLACK AND WHITE SCREEN AND MANY OF THE SAME FEATURES FOUND ON NOTEBOOK COMPUTERS THAT WEIGH NEARLY TWICE AS MUCH THE TWIST SAY THE EXPERTS IS THAT COMPAQ'S OFFERING WILL BE PRICED AS MUCH AS 1000 BELOW THE COMPETITION AT ABOUT 1400 AND WILL BE PITCHED AS A PC FOR THE HOME OTHER SUBNOTEBOOKS SUCH AS THOSE FROM INTERNATIONAL BUSINESS MACHINES CORP AND TOSHIBA CORP HAVE BEEN MARKETED TO TRAVELING EXECUTIVES OR OFFICE WORKERS NEEDING A SECOND COMPUTER KIMBALL BROWN AN ANALYST AT DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH CONCERN PREDICTS COMPAQ'S PRICES WILL HIT A SWEET SPOT IN THE MARKET THEY'RE SO ON TRACK ON THIS THAT IT'S DISGUSTING SAID MR BROWN RESPONDING TO SPECULATION ABOUT COMPAQ'S SUBNOTEBOOK STRATEGY PEOPLE LOOK AT THESE PRODUCTS AND SAY IT'S LITTLE SO IT SHOULD COST LESS' THEY'RE DOING EXACTLY WHAT THEY SHOULD BE DOING A SPOKESWOMAN FOR THE HOUSTON PC GIANT WOULDN'T COMMENT ON THE MACHINE WHICH IS EXPECTED TO BE FORMALLY ANNOUNCED MONDAY COMPAQ'S PROBLEM EXPERTS SAY IS THAT IT IS A LATECOMER TO A MARKET THAT IS ALREADY CROWDED IN ADDITION TO IBM'S THINKPAD AND TOSHIBA'S PORTEGE MODELS COMPAQ'S MACHINE WILL BE COMPETING AGAINST SIMILAR PRODUCTS FROM GATEWAY 2000 INC ZEOS INTERNATIONAL LTD AND HEWLETTPACKARD CO WILLIAM BLUESTEIN A DIRECTOR OF COMPUTER STRATEGY RESEARCH AT FORRESTER RESEARCH INC IN CAMBRIDGE MASS SAYS COMPAQ VIEWS THE SUBNOTEBOOK MARKET AS PARTICULARLY IMPORTANT GIVEN THE COMPANY'S LEGACY AS A TRENDSETTER IN PORTABLE PCS COMPAQ USED TO BE THE PACESETTER IN NOTEBOOKS AND ALL OF THE SUDDEN THEY'RE GETTING ONEUPPED MR BLUESTEIN SAID WHILE THE SUBNOTEBOOK MARKET IS STILL TINY WHEN COMPARED WITH BIGGER MACHINES ANALYSTS ARE BRACING FOR BIG GAINS DATAQUEST ESTIMATES THAT 13 MILLION SUBNOTEBOOKS WILL BE SOLD THIS YEAR DOUBLE FROM THE 613000 IN 1993 WITHIN FIVE YEARS DATAQUEST PREDICTS SUBNOTEBOOK SALES WILL EQUAL THOSE OF NOTEBOOKS 9402020177 940202 PEPPERAND SALT AS WHEN WE SAW IT THERE BUT WE DON'T HAVE HIS PANACHE I'VE DONE SOMETHING CONCRETE 9402020176 940202 WHO'S NEWS BLENHEIM GROUP PLC BLENHEIM GROUP PLC LONDON STEPHEN J IANUZZI 35 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF EXECUTIVE OFFICER AT THE BLENHEIM HOLDINGS INC UNIT OF THIS PRODUCER OF CONFERENCES AND EXHIBITIONS MR IANUZZI MOST RECENTLY CHIEF OPERATING OFFICER OF THE FORT LEE NJ UNIT WILL BE RESPONSIBLE FOR THE GROUP'S NORTH AMERICAN MEXICAN AND LATIN AMERICAN ACTIVITIES 9402020175 940202 WHO'S NEWS CANONIE ENVIRONMENTAL SERVICES CORP CANONIE ENVIRONMENTAL SERVICES CORP DALLAS E BRIAN SMITH CHIEF EXECUTIVE OFFICER WAS ALSO ELECTED CHAIRMAN SUCCEEDING TONY C CANONIE JR MR SMITH 56 YEARS OLD IS THE PRINCIPAL SHAREHOLDER OF SMITH ENVIRONMENTAL TECHNOLOGIES CORP WHICH RECENTLY ACQUIRED A 465 STAKE IN CANONIE FROM WR GRACE & CO AND PLACED FOUR NEW DIRECTORS 9402020174 940202 ALCOA REDEMPTION AND CHARGE PITTSBURGH ALUMINUM CO OF AMERICA SAID IT WILL USE 225 MILLION OF THE PROCEEDS FROM ITS OFFERING OF 575 NOTES DUE 2001 TO REDEEM ALL OF THE COMPANY'S OUTSTANDING 7 DEBENTURES DUE 2011 THE COMPANY SAID THE REDEMPTION AT 100 WILL RESULT IN AN EXTRAORDINARY CHARGE TO FIRST QUARTER 1994 EARNINGS OF 66 MILLION OR 75 CENTS A SHARE ALCOA POSTED NET INCOME OF 276 MILLION OR 31 CENTS A SHARE IN THE 1993 FIRST QUARTER ALCOA SAID THE 25 MILLION THAT WILL REMAIN FROM THE NOTE OFFERING WILL BE USED FOR GENERAL CORPORATE PURPOSES 9402020173 940202 CCP INSURANCE STOCK REPURCHASE CARMEL IND CCP INSURANCE INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION OR AN INDICATED 34 OF ITS 29 MILLION COMMON SHARES OUTSTANDING THE INSURANCE CONCERN SAID IT CONSIDERS ITS SHARES TO BE UNDERVALUED CURRENTLY THE TIMING AND TERMS OF ANY REPURCHASES WOULD BE BASED ON MARKET CONDITIONS THE COMPANY SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CCP CLOSED AT 2450 A SHARE UP 875 CENTS 9402020172 940202 WHAT'S NEWS WORLDWIDE CLINTON CAUTIONED AGAINST SUPERFICIAL TINKERING WITH THE HEALTH SYSTEM THE PRESIDENT SAID HE OPPOSED ANY LEGISLATIVE EFFORTS TO ACHIEVE HEALTHCARE REFORM INCREMENTALLY SAYING IT WOULD BE A MISTAKE TO TINKER AT THE EDGES MEANWHILE THE WHITE HOUSE LOBBIED TO STAVE OFF AN EMBARRASSING VOTE BY AN INFLUENTIAL BUSINESS GROUP IN FAVOR OF A RIVAL HEALTHCARE BILL THE BUSINESS ROUNDTABLE PLANS TO VOTE TODAY ON A PANEL RECOMMENDATION SUPPORTING THE COMPETING LEGISLATION AUTHORED BY REP COOPER AND SEN BREAUX A KEY CLINTON ALLY ON HEALTH CARE SEN JAY ROCKEFELLER CRITICIZED THE PRESIDENT FOR TALKING ABOUT COMPROMISE ON COST CONTROLS DURING A MEETING WITH GOVERNORS SAYING CLINTON'S COMMENTS WEREN'T PARTICULARLY USEFUL THE HEAD OF THE IMF SAID HIS AGENCY WOULD NOT BACK AWAY FROM THE STIFF CONDITIONS IT HAS SET FOR THE RELEASE OF MORE AID TO RUSSIA CAMDESSUS PREDICTED THAT BECAUSE OF THE IMF'S POSITION AND COMMENTS MADE BY THE YELTSIN GOVERNMENT TALKS AIMED AT UNLOCKING 15 BILLION IN IMF FUNDS MAY NOT BE EASY A BOSTON LAWYER WAS NOMINATED BY CLINTON TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS DEVAL PATRICK 37 HAS BEEN INVOLVED IN A NUMBER OF PRO BONO CIVILRIGHTS CASES THE POST FOR CHIEF CIVILRIGHTS ENFORCER HAS BEEN VACANT SINCE CLINTON TOOK OFFICE TWO PRIOR CHOICES LANI GUINIER AND JOHN PAYTON WERE FORCED TO WITHDRAW SERBS ARE INTENSIFYING THEIR PERSECUTION OF MUSLIMS AND CROATS IN NORTHWESTERN BOSNIA WITH KILLINGS BEATINGS AND EVICTIONS IN THE VICINITY OF SERBCONTROLLED BANJA LUKA A UN OFFICIAL SAID IN WASHINGTON BRITAIN'S FOREIGN SECRETARY URGED THE US TO ASSUME AN ACTIVE ROLE IN DIPLOMATIC EFFORTS TO SETTLE THE WAR IN BOSNIA RUSSIAN LEADERS CLASHED OVER THE POSSIBILITY OF AIR STRIKES AGAINST SERBS IN BOSNIA WITH PREMIER CHERNOMYRDIN RULING OUT AIR RAIDS AND FOREIGN MINISTER KOZYREV SAYING MOSCOW DOESN'T OPPOSE THE IDEA ULTRANATIONALIST ZHIRINOVSKY VOWED IN MONTENEGRO THAT HE WOULD UNSEAT THE MOSCOW GOVERNMENT AND HELP SERBS RESIST THE WEST IRISH ACTIVIST GERRY ADAMS CALLED FOR THE CLINTON ADMINISTRATION TO BE ACTIVELY INVOLVED IN THE NORTHERN IRELAND PEACE PROCESS AND TO PROD BRITAIN TO BREAK A DEADLOCK SPEAKING IN NEW YORK ADAMS WHO HEADS THE IRA'S POLITICAL WING ACCUSED THE BRITISH OF STALLING AN EMBARGO ON VIETNAM MAY BE LIFTED THIS WEEK BY CLINTON A SENIOR US OFFICIAL SAID PRESIDENTIAL ADVISERS HAVE RECOMMENDED SUCH A MOVE BASED ON HANOI'S COOPERATION IN EFFORTS TO HELP THE US RESOLVE CASES OF MIAS FROM THE VIETNAM WAR LAST WEEK THE SENATE APPROVED A RESOLUTION CALLING FOR AN END TO THE 19YEAROLD EMBARGO THE US WAS FORCED BY ITS MAJOR TRADING PARTNERS TO SCALE BACK A PLAN TO LIBERALIZE EXPORT CONTROLS ON CERTAIN COMPUTERS ADMINISTRATION OFFICIALS SAID THAT MEMBERS OF COCOM REJECTED THE US PROPOSAL TO EASE RESTRICTIONS COMMERCE SECRETARY BROWN IS EXPECTED TO BE INFORMED BY THE JUSTICE DEPARTMENT THIS WEEK THAT IT HASN'T FOUND ANY EVIDENCE TO SUPPORT CHARGES THAT BROWN SOUGHT A BRIBE TO INFLUENCE US POLICY TOWARD VIETNAM A LETTER FROM THE DEPARTMENT WILL MOST LIKELY BE SENT TO BROWN WITHIN A FEW DAYS AN ADMINISTRATION OFFICIAL SAID THE PLO HAS ASSURED ISRAEL THAT PALESTINIANS ARE HEADED TOWARD CONFEDERATION WITH JORDAN RATHER THAN A SEPARATE STATE THE ISRAELI FOREIGN MINISTER SAID MANY ISRAELIS HAVE FEARED THAT PALESTINIAN AUTONOMY IN GAZA AND JERICHO COULD LEAD TO A PALESTINIAN STATE ISRAEL WILL BE ALLOWED TO EXPORT EQUIPMENT TO THE US DERIVED FROM THAT NATION'S BALLISTIC MISSILE PROGRAM AS A RESULT US FIRMS MAY BE ABLE TO IMPORT ISRAEL'S SPACELAUNCH VEHICLE TONYA HARDING'S EXHUSBAND PLEADED GUILTY TO TAKING PART IN THE JAN 6 ATTACK THAT FORCED HARDING'S RIVAL NANCY KERRIGAN OUT OF THE US FIGURE SKATING CHAMPIONSHIPS JEFF GILLOOLY STRUCK A PLEA BARGAIN UNDER WHICH HE CONFESSED TO A RACKETEERING CHARGE IN EXCHANGE FOR HIS TESTIMONY HARDING HAS DENIED THAT SHE HELPED PLAN THE ATTACK A HOUSE COMMITTEE APPROVED 77 BILLION IN EMERGENCY ASSISTANCE FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE CLEARING THE WAY FOR THE FULL HOUSE TO CONSIDER THE MATTER AS EARLY AS TOMORROW 9402020171 940202 INTERNATIONAL ROVER CARS SALE LEAVES HONDA IN THE LURCH BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE SALE OF AN 80 STAKE IN BRITISH AUTO MAKER ROVER CARS TO BAYERISCHE MOTOREN WERKE AG PUTS HONDA MOTOR CO THE OWNER OF THE REMAINING 20 BETWEEN A ROCK AND A HARD PLACE THE JAPANESE AUTO MAKER HAD LOOKED AT ITS MINORITY STAKE IN ROVER AS A FOOT IN THE DOOR OF FORTRESS EUROPE WHOSE PERCEIVED BARRIERS TO TRADE HAVE WORRIED HONDA EXECUTIVES NOW WITH THE DOOR SLAMMED UNEXPECTEDLY ON ITS TOES HONDA CAN EITHER ABANDON THAT STRATEGY OR REMAIN A RELUCTANT PLAYER IN A NEW PARTNERSHIP IT DIDN'T SEEK INDEED THE NEW PARTNERS ARE TO SOME EXTENT RIVALS WHILE HONDA AND BMW DON'T COMPETE HEADON THROUGHOUT THEIR PRODUCT LINES THE GERMAN CAR MAKER IS ONE OF THE FEW FOREIGN CAR MAKERS THAT HAS MANAGED TO CRACK THE JAPANESE MARKET SELLING MORE THAN 25000 UNITS HERE LAST YEAR BMW FILLS A SMALL BUT LUCRATIVE NICHE IN JAPAN FOR TOPFLIGHT EUROPEAN CARS WHILE HONDA AND OTHER JAPANESE VOLUMECAR PRODUCERS HAVE BEEN HURTING IN JAPAN'S RECESSION BMW IS ONE OF OUR COMPETITORS SAID A HONDA SPOKESMAN AND A COMPETITOR HOLDING AN 80 SHARE IN A HONDA AFFILIATE IS NOT A NATURAL SITUATION WHILE THE TRANSACTION ANNOUNCED MONDAY BETWEEN BMW AND ROVER WHICH IS A UNIT OF BRITISH AEROSPACE PLC IS A SETBACK FOR HONDA IT ISN'T A DISASTER ANALYSTS SAY HONDA HAS ITS OWN FOOTHOLD IN THE EUROPEAN MARKET WITH A SEPARATE AUTO FACTORY IN BRITAIN MOREOVER ANALYSTS SAY THE BMW INVESTMENT IN ROVER WON'T HURT HONDA'S BOTTOM LINE OTHER THAN HURT PRIDE WE SEE NO LASTING EFFECT ON HONDA'S BUSINESS CAUSED BY BMW'S PURCHASE SAID JONATHAN DOBSON AN AUTOMOBILE INDUSTRY ANALYST AT JARDINE FLEMING SECURITIES HIS ANALYSIS IS SIMPLE IF IT HANGS ON TO ITS ROVER STAKE HONDA WILL STILL BE THE 20 OWNER OF RELATIVELY BUOYANT ROVER INDEED ANALYSTS SAY ROVER MAY SOON BE TURNING A CONSIDERABLE PROFIT FOR ITS OWNERS THANKS IN LARGE PART TO HONDA'S TECHNICAL ASSISTANCE MOREOVER HONDA PAID ABOUT 140 MILLION 2111 MILLION FOR ITS 20 STAKE THAT STAKE IS NOW VALUED AT ROUGHLY 200 MILLION BASED ON THE 800 MILLION BMW IS PAYING FOR THE REMAINING 80 STILL THE BMW PURCHASE WILL FORCE HONDA TO REEXAMINE SEVERAL OF ITS OPERATING ASSUMPTIONS FOR EUROPE BUSINESS HASN'T BEEN GOOD FOR HONDA LATELY A STRONG YEN HAS EATEN INTO REVENUE FROM THE US AND AN ECONOMIC DOWNTURN IN JAPAN HAS ERODED PROFIT AT HOME IN THE FISCAL FIRST HALF HONDA'S CONSOLIDATED NET INCOME DROPPED 63 TO 93 BILLION YEN 857 MILLION MANY ANALYSTS SAY THAT DEPLETED COFFERS ARE THE MAIN REASON HONDA TURNED DOWN AN OPTION FOR IT TO ACQUIRE A MAJORITY INTEREST IN ROVER HONDA LIKELY WAS UNWILLING TO TAKE MORE OF ROVER BECAUSE IT DIDN'T WANT TO SPEND THE MONEY GIVEN THE HARD TIMES IT IS EXPERIENCING IN JAPAN AND THE US SAID JARDINE FLEMING'S MR DOBSON HONDA SAYS IT DECLINED TO BUY MORE OF ROVER BECAUSE IT WANTED TO PRESERVE THE COMPANY'S BRITISH CHARACTER MOREOVER A SPOKESMAN SAID TUESDAY THAT HONDA HASN'T DECIDED ON ANY COURSE OF ACTION HE INDICATED THE COMPANY EXPECTS TO HAVE TALKS WITH BMW EXECUTIVES BEFORE DECIDING ITS STRATEGY EVEN IF HONDA DECIDES TO BACK OUT OF ITS 20 HOLDING COOPERATION BETWEEN ROVER AND HONDA'S EUROPEAN UNIT IS LIKELY TO CONTINUE FOR AT LEAST THE SHORT TERM SINCE 1979 WHEN HONDA FIRST ENTERED A LICENSING AGREEMENT WITH ROVER THE TIES BETWEEN THE TWO COMPANIES HAVE GROWN INCREASINGLY CLOSE WITH SEVERAL TECHNOLOGICAL AND PARTSSHARING AGREEMENTS MANY ROVERS COME EQUIPPED WITH HONDA ENGINES BESIDES GIVING ROVER TECHNOLOGICAL ASSISTANCE HONDA HAS BEGUN INTEGRATING OPERATIONS BETWEEN ROVER AND ITS OWN PLANT IN THE UK THE RELATIONSHIP INVOLVES MORE THAN JUST THE SHAREHOLDING ASPECT SAID THE HONDA SPOKESMAN IT MUST CONTINUE FOR A WHILE SEPARATELY BRITISH INDUSTRY MINISTER TIM SAINSBURY SOUGHT TO REASSURE JAPANESE INVESTORS IN THE UK IN THE WAKE OF THE BMWROVER DEAL I WOULD LIKE TO REASSURE ANY JAPANESE INVESTORS THAT AS FAR AS THIS COUNTRY IS CONCERNED WE WILL CONTINUE TO WELCOME JAPANESE INVESTMENT HE SAID EXPRESSING SYMPATHY FOR HONDA THEIR PARTNER HAS GONE OFF WITH SOMEBODY ELSE AND I CAN UNDERSTAND THEIR REACTION 9402020170 940202 COMMODITIES OIL PRICES HEAT UP AMID REPORTS OF BIG CHILL IN TEMPERATURES THROUGHOUT US NEXT WEEK BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES JUMPED ON REPORTS THAT BITTERLY COLD WEATHER WILL PLAGUE MUCH OF THE US THROUGH NEXT WEEK CONCERN THAT SEVERE TEMPERATURES WOULD CAUSE OIL USE TO RISE ENGENDERED A SURGE OF BUYING THAT GREW THROUGHOUT THE TRADING SESSION THE BUYING TURNED INTO A RALLY OUT OF THE BLUE TRADERS SAID AS SHORTTERM BULLISH FACTORS TOOK PRECEDENCE OVER LONGTERM BEARISH FUNDAMENTALS SEASONALITY TOOK A FRONT SEAT WHILE ISSUES SUCH AS OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OVERPRODUCTION TOOK A BACK SEAT SAID PETER GIGNOUX MANAGER OF THE PETROLEUM DESK FOR SMITH BARNEY SHEARSON LTD'S LONDON OFFICE CRUDE OIL FOR MARCH DELIVERY SOARED 73 CENTS A BARREL TO 1592 A BARREL HEATING OIL FOR THE SAME PERIOD JUMPED BY 228 CENTS A GALLON TO 5183 CENTS WHILE GASOLINE PRICES ROSE 233 CENTS A GALLON TO 4555 CENTS FUELING THE PRICE INCREASES WERE REPORTS THAT UNUSUALLY LOW TEMPERATURES THROUGH SUNDAY WOULD CAUSE ENERGY USE THROUGHOUT THE US TO RISE BY 25 ABOVE NORMAL LEVELS ACCORDING TO ACCUWEATHER INC IN STATE COLLEGE PA JAMES CANDOR ASSISTANT VICE PRESIDENT FOR THE WEATHERFORECASTING ORGANIZATION SAID THAT IN THE NORTHEAST THE WORLD'S LARGEST HEATINGOIL MARKET TEMPERATURES WERE EXPECTED TO BE EIGHT TO 10 DEGREES BELOW NORMAL NORMAL TEMPERATURES IN NEW YORK CITY FOR THIS TIME OF YEAR RANGE BETWEEN 25 DEGREES AND 37 DEGREES FAHRENHEIT HE SAID NEXT WEEK ACCUWEATHER EXPECTS TEMPERATURES IN THE NORTHEAST AND IN THE MIDWEST TO LOG IN AT THREE DEGREES TO SIX DEGREES FAHRENHEIT BELOW NORMAL JON DAVIS METEOROLOGIST FOR SMITH BARNEY SHEARSON SAYS PLAIN AND SIMPLY IT'S GOING TO BE BRUTALLY COLD AS TWO ARCTIC AIR MASSES MOVE DOWN ACROSS THE US OVER THE NEXT WEEK TO 10 DAYS REPORTS THAT HEATINGOIL SUPPLIES IN SOME AREAS ARE BECOMING TIGHT HELPED TO DRIVE THE RALLY ACCORDING TO A SPOKESMAN FOR SUN CO IN PHILADELPHIA CONTRACT CUSTOMERS AREN'T ABLE TO TAKE THE FULL VOLUME THEY CONTRACTED FOR ALL AT ONCE AS THEY SOMETIMES CHOOSE TO DO RATHER THEY WILL HAVE TO SPREAD THEIR PURCHASES OUT OVER THE MONTH AND NONCONTRACT CUSTOMERS ARE BEING BARRED FROM PURCHASING ANY SUPPLIES FROM CERTAIN SUN TERMINALS AS THEY SOMETIMES DO THIS CONDITION WILL LIKELY LAST THROUGH FEBRUARY THE SUN SPOKESMAN SAID THAT BARGES HAVE HAD TROUBLE MOVING UP THE FROZEN RIVERS TO THE TERMINALS IN ADDITION THE SEVERE COLD HAS CAUSED SOME PRODUCTION PROBLEMS AT SUN REFINERIES FOLLOWING A SERIES OF FIRES POSSIBLY CAUSED BY COLD WEATHER AMOCO CORP SAID THAT IT IS STILL ALLOCATING SOME SUPPLIES OF DIESEL FUEL ALTHOUGH THE ALLOCATION OF GASOLINE SUPPLIES HAS BEEN LIFTED AMOCO SAID ITS REFINERY IN WHITING IND WAS AGAIN OPERATING AT MORE THAN 75 OF ITS CAPACITY OF 400000 BARRELS A DAY ITS PRODUCTION HAD BEEN REDUCED BECAUSE OF THE FIRES IN OTHER COMMODITY MARKETS YESTERDAY COPPER COPPER FUTURES PRICES SURGED AS DEMAND FOR COPPER REMAINED STRONG AND INDUSTRIAL METALS PRICES ROSE ACROSS THE BOARD AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS UP 28 CENTS TO 896 CENTS A POUND FRED DEMLER METALS ECONOMIST FOR ED & F MAN SAID STRONG SUPPLYANDDEMAND FACTORS CONTINUE TO EXERT UPWARD PRESSURE ON COPPER FUTURES PRICES WORLDWIDE COPPER CONSUMPTION WAS UP 24 IN 1993 WHILE WORLDWIDE MINE PRODUCTION DROPPED 18 HE SAID IN THE FOURTH QUARTER OF 1993 US CONSUMPTION OF COPPER WAS UP MORE THAN 8 FROM THE YEARAGO PERIOD IN LONDON PRICES OF ALUMNIMUM NICKEL AND ZINC ALSO ROSE YESTERDAY LIVESTOCK & MEATS PRICES OF CATTLE FUTURES CONTRACTS FELL AMID CONTINUING SIGNS OF WEAK DEMAND AT THE RETAIL LEVEL IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE CATTLE CONTRACT FOR FEBRUARY DELIVERY DROPPED 102 CENTS A POUND TO SETTLE AT 7227 CENTS A POUND BEEF DEMAND HAS BEEN LACKLUSTER SINCE LAST FALL TRADERS ARE ALSO BEGINNING TO FOCUS ON THE FRIDAY RELEASE OF THE AGRICULTURE DEPARTMENT'S JAN 1 SURVEY OF THE NATION'S CATTLE HERD DAN VAUGHT A LIVESTOCK ANALYST AT AG EDWARDS & SONS ST LOUIS SAID HE EXPECTS THE GOVERNMENT TO REPORT THAT THE US HERD INCREASED 1 TO 1019 MILLION ANIMALS FROM A YEAR EARLIER HOG PRICES SLIPPED IN SYMPATHY WITH CATTLE 9402020169 940202 WHO'S NEWS ACTION PRODUCTS INTERNATIONAL INC ACTION PRODUCTS INTERNATIONAL INC OCALA FLA RON KAPLAN VICE PRESIDENT OF SALES AND MARKETING WAS NAMED PRESIDENT OF THIS GIFT AND SNACK MAKER MR KAPLAN 28 YEARS OLD SUCCEEDS HIS FATHER WARREN KAPLAN 56 HIS WIFE JUDITH KAPLAN REMAINS CHIEF EXECUTIVE OFFICER A COMPANY SPOKESPERSON SAID THE CHANGE FOLLOWS THE EXPIRATION OF THE SENIOR MR KAPLAN'S EMPLOYMENT CONTRACT AND GIVES THE COMPANY A MORE AGGRESSIVE LEADER THE KAPLANS DECLINED FURTHER COMMENT 9402020168 940202 IN THE LAB NEWDRUG HUNTERS TURN OVER AN OLD LEAF AND STUDY PLANTS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN SVETLANA OVCHARENKO A UKRAINIAN BIOCHEMIST OPENS A DOOR OFF A DIM BASEMENT CORRIDOR IN THE BRONX STRONG HERBAL AND EARTHY SCENTS RUSH OUT THE SCENTS EMANATE FROM WHITE MUSLIN SACKS PILED NEARLY TO THE CEILING WITHIN ARE HUNDREDS OF PLANT SAMPLES FROM WISCONSIN TEXAS PUERTO RICO AND THE GARDEN'S OWN 250 ACRES IN THE BRONX NY HOME TO ABOUT 2000 NATIVE SPECIES THE SAMPLES HAVE BEEN COLLECTED IN A JOINT PROJECT BY PHARMACEUTICAL GIANT PFIZER INC AND THE NEW YORK BOTANICAL GARDEN TO FIND PLANTS TO TEST AS POTENTIAL DRUGS ACKNOWLEDGING THAT NATURE MAY SOMETIMES OUTSTRIP CHEMISTRY AT MAKING MEDICINES THEY ARE GUESSING THAT A CANCER CURE MAY BE GROWING IN YOUR BACKYARD PLANTS HAVE BEEN A BOUNTIFUL SOURCE OF MEDICINES FOR THOUSANDS OF YEARS ONEQUARTER OF ALL PRESCRIPTION DRUGS USED IN THE US HAVE ORIGINS IN PLANTS THE ROSY PERIWINKLE AND THE PACIFIC YEW TREE HAVE YIELDED IMPORTANT CANCER TREATMENTS THE HEART MEDICINE DIGITALIS COMES FROM THE FOXGLOVE LEAF FROM THE POISONOUS BELLADONNA HAVE COME COMPOUNDS USED TO DILATE THE PUPIL YET FEWER THAN 1 OF THE WORLD'S 250000 FLOWERING PLANT SPECIES HAVE UNDERGONE THOROUGH ANALYSIS AS POTENTIAL MEDICINES ACCORDING TO THE BOTANICAL GARDEN PLANTS ARE HARD TO WORK WITH AND PLANT CHEMISTRIES CAN CHANGE UNPREDICTABLY DEPENDING ON THE SEASON SOIL CONDITIONS AND THE PRESENCE OF PESTS SAYS GARY R SCHULTE THE SENIOR RESEARCH SCIENTIST HEADING UP THE PROJECT FOR PFIZER DRUG RESEARCHERS INSTEAD USUALLY PREFER TO CREATE THEIR OWN SYNTHETIC CHEMICALS HE SAYS BUT THE PFIZER PLANT PROJECT SEEKS TO TAKE DRUG RESEARCH BACK TO ITS ROOTS LITERALLY IN THE FIRST YEAR OF THE 2 MILLION THREEYEAR PROJECT THE BOTANICAL GARDEN IS TRYING TO COLLECT A BROAD SAMPLE OF US PLANTS COLLECTIONS IN THE SECOND AND THIRD YEARS WILL FOCUS MORE ON PLANT VARIETIES THAT ARE KNOWN TO PRODUCE MEDICINAL COMPOUNDS OR THAT HAVE BEEN USED AS FOLK REMEDIES IN OTHER CULTURES MICHAEL J BALICK LEADS THE PROGRAM FOR THE GARDEN AFTER ESTABLISHING A PLANT'S IDENTITY THE PROJECT'S FOUR FIELD BOTANISTS SEPARATE IT INTO ITS PARTS LEAVES ROOTS STEMS FLOWERS BARKS BERRIES EACH OF WHICH MAY PRODUCE DIFFERENT CHEMICAL COMPOUNDS EXTRACTING THOSE CHEMICAL COMPOUNDS BEGINS UPSTAIRS FROM THE SCENTED ROOM IN A LABORATORY STAFFED BY MS OVCHARENKO AND AN ASSISTANT ERICA RODRIGUEZ ON A RECENT MORNING MS RODRIGUEZ FILLED A LARGE BELLBOTTOMED FLASK WITH COARSELY GROUND WOOD SHAVINGS AND METHANOL A CLEAR LIQUID THAT IMMEDIATELY TOOK ON A GREEN TINT AS IT BEGAN DRAWING OUT THE PLANT'S CHEMICAL COMPOUNDS EVENTUALLY THE LIQUID IS REDUCED TO ROUGHLY A TABLESPOON OF GELLIKE EXTRACT THE HUNT FOR NEW DRUGS BEGINS IN EARNEST AFTER THE EXTRACTS ARRIVE AT THE NEWLY CREATED NATURALPRODUCTS CHEMISTRY GROUP AT PFIZER'S MAIN RESEARCH FACILITY IN GROTON CONN THE OPERATION IS STAFFED BY A GROUP OF YOUNG SCIENTISTS DRAWN FROM MORE TRADITIONAL PFIZER RESEARCH OPERATIONS BY THE APPEAL OF WORKING WITH NATURAL MATERIALS BUT LITTLE ELSE RESEMBLES NATURE IN THE PFIZER LABORATORY WHICH HUMS WITH COMPUTERIZED ROBOTIC ARMS AND OTHER SCIENTIFIC INSTRUMENTS A MAJOR BARRIER TO WORKING WITH PLANTS IN THE PAST WAS THE TEDIUM OF MANUALLY SEPARATING THE DOZENS OF CHEMICAL COMPOUNDS IN A PLANT EXTRACT A PROCESS THAT WOULD OFTEN TAKE MONTHS BUT NEW TECHNOLOGY NOW ENABLES THE LAB TO PROCESS HUNDREDS OF EXTRACTS CONTAINING THOUSANDS OF COMPOUNDS A WEEK DR SCHULTE SAYS IN THE PFIZER LAB THE PLANT'S CONGLOMERATION OF CHEMICALS IS ROUGHLY SEPARATED INTO 90 TINY TEST TUBES EACH CONTAINING A MORE MANAGEABLE 10 TO 20 COMPOUNDS THE EXTRACTS ARE TAKEN TO ONE OF TWO BIOLOGICAL SCREENING ROOMS WHERE THEIR EFFECT IS TESTED ON DOZENS OF DISEASES INCLUDING CANCERS DIABETES BACTERIAL INFECTIONS ALZHEIMER'S DISEASE AND HEART DISEASE IN A MACHINE THE SIZE OF A DESKTOP COPIER CALLED A MICROTITER PLATE SPECTROPHOTOMETER THE EXTRACTS' EFFECT ON SCREENS CONTAINING BACTERIA ENZYMES AND DISEASECAUSING DNA IS MEASURED BY THE COLOR CHANGES OR CLOUDINESS THAT RESULT EACH YEAR PFIZER RUNS HUNDREDS OF THOUSANDS OF CHEMICALS MOSTLY SYNTHETIC THROUGH THE SCREENS AND GETS THOUSANDS OF HITS OR PROMISING RESULTS SAYS JAMES J VALENTINE A PFIZER SENIOR SCIENTIST RESPONSIBLE FOR SCREENING THE NATURAL PRODUCTS A SYNTHETIC CHEMICAL CAN PROCEED TO MORE ADVANCED TESTING BECAUSE ITS EXACT STRUCTURE IS KNOWN BUT THE COMPOUNDS CONTAINED IN PLANT EXTRACTS THEIR STRUCTURE AND EVEN WHICH ONE CAUSED THE HIT ARE UNKNOWN THE RESEARCHERS SEARCH FOR CLUES TO THE COMPOUNDS' WEIGHT AND STRUCTURE BY EXPOSING THE EXTRACT TO ULTRAVIOLET LIGHT LASERS AND OTHER TESTS ALREADY THE NATURALPRODUCTS LAB HAS FOUND A PROMISING COMPOUND FROM A PLANT THAT WAS USED BY AMERICAN INDIANS TO TREAT HEART TROUBLE FEVERS INFLAMMATION AND IMPOTENCE 9402020167 940202 TUESDAY'S MARKETS BONDS SINK AND STOCKS FOLLOW SUIT MORE SIGNS OF PICKUP IN ECONOMY CITED DOLLAR ALSO DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A TUMBLE IN BOND PRICES GAVE STOCK MARKET INVESTORS AN EXCUSE TO TAKE PROFITS AFTER THE RECENT RALLY THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK 1435 POINTS TO 396401 STANDARD & POOR'S 500STOCK INDEX FELL 199 TO 47962 AND THE NASDAQ COMPOSITE INDEX LOST 323 TO 79724 ALL THREE HIT RECORD HIGHS ON MONDAY BOND PRICES WERE PUMMELED BY FURTHER SIGNS OF A STRENGTHENING ECONOMY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED A STRONGERTHANEXPECTED JUMP IN ITS INDEX OF MANUFACTURING ACTIVITY FOR JANUARY ANALYSTS SAID BOND TRADERS WERE ESPECIALLY CONCERNED ABOUT A SHARP RISE IN THE PRICE COMPONENT OF THE INDEX RAISING FEARS OF INFLATION ALSO THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING ROSE A BETTERTHANEXPECTED 26 IN DECEMBER ANALYSTS ADDED THAT PERHAPS MOST TROUBLING TO BOND INVESTORS WAS THE UNEXPECTED ANNOUNCEMENT BY FEDERAL RESERVE BOARD VICE CHAIRMAN DAVID MULLINS THAT HE WILL RESIGN HIS POST THIS MONTH TO JOIN THE PRIVATE SECTOR HIS RESIGNATION LEAVES TWO VACANCIES WITH THE IMPENDING DEPARTURE OF FED GOVERNOR WAYNE ANGELL THIS MONTH FOLLOWING THE END OF HIS TERM IN JANUARY MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK SAID BOND TRADERS REACTED NEGATIVELY BECAUSE THEY FEARED MR MULLINS'S RESIGNATION GIVES THE CLINTON ADMINISTRATION A GREATER CHANCE TO INFLUENCE THE MAKEUP OF THE BOARD MOST LIKELY MULLINS'S REPLACEMENT WILL BE MORE ALIGNED WITH THE ADMINISTRATION NOT ONLY ON BANK REGULATORY POLICY BUT ALSO ON MONETARY POLICY MR LEVY SAID SLUMPING BOND PRICES CARRIED STOCK PRICES LOWER AS INVESTORS LOCKED IN PROFITS FROM THE STOCK MARKET'S SHARP CLIMB OF THE PAST WEEK IN FOUR TRADING DAYS THROUGH MONDAY THE INDUSTRIAL AVERAGE HAD GAINED 21 AMID YESTERDAY'S DECLINE ECONOMICALLY SENSITIVE STOCKS CONTINUED TO OUTPERFORM THE MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 041 TO 11901 IN MAJOR MARKET ACTION STOCK PRICES SLID VOLUME TOTALED 3224 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1148 ISSUES FELL AND 961 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN ONE POINT OR MORE THAN 10 FOR EACH 1000 FACE AMOUNT TO YIELD 631 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17320 MARKS AND 10770 YEN COMPARED WITH 17345 MARKS AND 10870 YEN MONDAY 9402020166 940202 WHO'S NEWS HEXCEL CORP HEXCEL CORP PLEASANTON CALIF JOHN J LEE CHAIRMAN OF THIS MANUFACTURER OF HIGHTECH MATERIALS WAS NAMED SOLE CHIEF EXECUTIVE OFFICER AND ROBERT D KRUMME WAS NAMED VICE CHAIRMAN THEY SUCCEED JOHN L DOYLE WHO RESIGNED FROM BOTH POSITIONS BUT REMAINS A DIRECTOR HEXCEL'S BOARD ALSO ELECTED THREE DIRECTORS EXPANDING THE BOARD TO 10 THEY ARE MR KRUMME CHARLES A LYNCH CHAIRMAN OF GREYHOUND LINES INC AND CHAIRMAN OF MARKET VALUE PARTNERS CO AND DONALD J O'MARA HEXCEL'S PRESIDENT AND CHIEF OPERATING OFFICER 9402020165 940202 MARKETING & MEDIA ADVERTISING MAN BEHIND THE PEPSI GENERATION' FAULTS THE BE YOUNG' CAMPAIGN BY KEVIN GOLDMAN ALAN POTTASCH IS ALMOST WHISPERING AS HE SPEAKS THE MAN WHO SPENT ALMOST 35 YEARS SHAPING THE ADS FOR PEPSICO'S FLAGSHIP PEPSICOLA BRAND IS OFFERING A CANDID ASSESSMENT OF ITS CURRENT BE YOUNG HAVE FUN DRINK PEPSI CAMPAIGN IT TARGETS KIDS 15YEARSOLD AND YOUNGER SAYS MR POTTASCH AS A MAJOR SOFTDRINK PRODUCT YOU SHOULDN'T ALIENATE ANYBODY WHAT MAKES HIS COMMENT ESPECIALLY NOTEWORTHY IS THE FACT THAT MR POTTASCH ISN'T A FORMER EXECUTIVE WITH A VENDETTA AGAINST PEPSICO HARDLY RATHER MR POTTASCH IS ON THE INSIDE AND SAYS HE HAS THE GREATEST JOB IN THE ENTIRE WORLD TWO YEARS AFTER A VOLUNTARY RETIREMENT THE MAN WHO APPROVED THE MUCH LAUDED PEPSI GENERATION CAMPAIGN IN 1963 AND LED YEARS OF SUBSEQUENT MEMORABLE COMMERCIALS IS BACK AT PEPSI IN SOMERS NY HIS NEW RESPONSIBILITIES INCLUDE ADVERTISING FOR PEPSICOLA INTERNATIONAL INTERNATIONAL ADVERTISING FOR KENTUCKY FRIED CHICKEN AND DOMESTIC ADVERTISING FOR THE FRITOLAY DIVISION HE WAS PART OF THE TEAM THAT WORKED ON THE WAVY LAY'S CHIP AD FEATURING FORMER VICE PRESIDENT DAN QUAYLE THAT WAS SHOWN ON THE SUPER BOWL BUT IT IS THE DOMESTIC ADVERTISING THAT CAUSES MR POTTASCH AN AFFABLE 67YEAROLD TO SHAKE HIS HEAD THE SOFTDRINK MANUFACTURER IS TURNING OFF PEOPLE 40YEARSOLD AND UP HE SAYS REFERRING TO THE VERY LARGE FIRST WAVE OF BABY BOOMERS SOME OF PEPSI'S ADS STRIKE MR POTTASCH AS JUST PLAIN CURIOUS ONE AD SHOWN DURING THE SUPER BOWL FEATURED MODEL CINDY CRAWFORD BEING DEPRIVED OF PEPSI FOR A MONTH AND AS A RESULT TURNING INTO RODNEY DANGERFIELD THAT ENDED ON A DOWNER HE SAYS IT MIGHT HAVE BEEN MORE EFFECTIVE TO HAVE RODNEY DANGERFIELD DRINK NOTHING BUT PEPSI AND AFTER A TIME TURN INTO CINDY CRAWFORD THAT IS UPLIFTING HE SAYS PEPSI DECLINES TO COMMENT ON MR POTTASCH'S ASSESSMENT REFERRING CALLS TO PHILIP B DUSENBERRY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OMNICOM GROUP'S BBDO NEW YORK PEPSI'S AD AGENCY ALAN AND I HAVE WORKED TOGETHER FOR A GREAT MANY YEARS MR DUSENBERRY SAYS WE'RE IN THE MIDST OF BREAKING NEW GROUND ON OUR GLOBAL MARKETING FOR PEPSICOLA AND WE JUST RECENTLY COMPLETED SOME TERRIFIC SPOTS FOR FRITOLAY MR DUSENBERRY ONE OF MR POTTASCH'S CLOSE FRIENDS DECLINES TO COMMENT FURTHER MR POTTASCH IS TAKING SOME SATISFACTION THAT ONE OF THE ADS HE WAS INVOLVED WITH WAS ORIGINALLY SUPPOSED TO BE SHOWN ONLY IN FOREIGN COUNTRIES BUT THE AD STARRING A CHIMP WHO DRINKS PEPSI AS PART OF A LABORATORY EXPERIMENT AND WINDS UP ESCAPING TO CAVORT WITH YOUNG FEMALE HUMANS ON A BEACH APPEARED DURING THE SUPER BOWL AND HAS BECOME PART OF PEPSI'S DOMESTIC ROTATION BY ALL ACCOUNTS MR POTTASCH SHOULD BE ENJOYING RETIREMENT HE HAS A HOUSE IN THE CAYMAN ISLANDS HE IS A SCUBADIVING INSTRUCTOR HE FLIES AN ANTIQUE 1946 J3 CUB AIRPLANE NEAR HIS HOME IN RURAL CONNECTICUT AND HE HAS A FOURYEAROLD DAUGHTER AS WELL AS THREE GROWN CHILDREN YET ONE GETS THE SENSE THAT HE LOVES THE BAREKNUCKLES AD WAR BETWEEN PEPSI AND ARCHRIVAL COCACOLA IT WAS CHRIS SINCLAIR PRESIDENT AND CHIEF EXECUTIVE OF PEPSICO'S FOODS AND BEVERAGES INTERNATIONAL WHO CALLED TO COAX MR POTTASCH BACK TO WORK MR POTTASCH TAKES A VERY BASIC VIEW OF ADVERTISING HIS PRODUCT WE DON'T HAVE A COMPLICATED MESSAGE HE SAYS TOO OFTEN MARKETING EXECUTIVES WANT TO GET TOO CEREBRAL WITH A MESSAGE INSTEAD OF APPEALING EMOTIONALLY MY PHILOSOPHY IS SIMPLY SHOW ME SOMEONE WITH A MOUTH AND I'LL SHOW YOU A CUSTOMER ADS HE SAYS SHOULD CONSIST OF THE SELLING MESSAGE AND SOME ENTERTAINMENT TO PAY THE GUY OFF FOR LISTENING MR POTTASCH HAS BEEN APPEALING TO US CONSUMERS SINCE HE JOINED PEPSI IN 1959 AFTER A STINT AS A VICE PRESIDENT OF KENYON & ECKHARDT THE AD AGENCY THAT IS NOW PART OF BOZELL JACOBS KENYON & ECKHARDT MR POTTASCH HAD BEEN A DIRECTOR AT ABC AND IN THE LATE 1940S WORKED AT A DALLAS TELEVISION STATION AS A PRODUCER AND DIRECTOR IT WAS IN HIS EARLY DAYS AT PEPSI THAT THE COMPANY REALIZED IT COULD NEVER COMPETE WITH COKE'S ALLAMERICAN IMAGE SAYS MR POTTASCH SO WE CHOSE TO HAVE A FOCUS WHERE THE ADVERTISING WAS THE CONSUMER NOT THE PRODUCT SUCH A PHILOSOPHY LED TO CAMPAIGNS FOR PEPSI INCLUDING NOW IT'S PEPSI FOR THOSE WHO THINK YOUNG IN 1960 WHICH RESEMBLES THE 1994 SLOGAN COME ALIVE YOU'RE IN THE PEPSI GENERATION YOU'VE GOT A LOT TO LIVE AND PEPSI'S GOT A LOT TO GIVE AND PEPSI THE CHOICE OF A NEW GENERATION IN FACT ONE OF PEPSI'S FEW MISFIRES DURING ITS GOLDEN ADVERTISING ERA CAME WHEN PEPSI DISPATCHED MR POTTASCH TO JAPAN TO HEAD ITS OPERATIONS IN THE FAR EAST IN THE LATE 1960S THEN PEPSI CHANGED ITS CAMPAIGN TO TASTE THAT BEATS THE OTHERS COLD PEPSI POURS IT ON MR POTTASCH DECLINES TO CRITICIZE THE CAMPAIGN BUT OTHER EXECUTIVES CLOSE TO THE SITUATION SAY THAT RESEARCH SHOWED CONSUMERS PREFERRED THE PEPSI GENERATION ADS HE SAYS HE IS GLAD HE HAS NOTHING TO DO WITH PEPSI'S CURRENT DOMESTIC ADVERTISING AND WANTS TO EMPHASIZE THAT HIS CRITICISM IS NOT MEANT TO CAUSE RESENTMENT OR ILL FEELINGS WITHIN THE COMPANY HE CLEARLY LOVES BUT MR POTTASCH ALMOST CAN'T HELP TALKING ABOUT THE CURRENT PEPSI ADS IN THE US DURING A 90MINUTE BREAKFAST CONVERSATION YESTERDAY HE OFTEN HAD TO FORCE HIMSELF TO STOP IN MIDSENTENCE WHEN DISCUSSING PEPSI'S ADS AS FOR COKE'S ADS PRODUCED BY CREATIVE ARTISTS AGENCY MR POTTASCH IS UNIMPRESSED ALL THOSE HEADLINES AND ALL THAT PUBLICITY HE SAYS AND ALL THEY HAVE LEFT IS THE POLAR BEARS COKE HAS GOTTEN AWAY FROM THE AMERICANA THAT MADE IT SO POPULAR FOR DECADES COKE DECLINED TO COMMENT ON HIS VIEW MR POTTASCH SAYS HE IS GRATIFIED THAT HIS NEW INTERNATIONAL SPOT WITH THE CHIMP IS ALREADY CAUSING WAVES IN GREECE A TELEVISION NETWORK PULLED THE SPOT COMPARATIVE ADVERTISING IS BANNED OR RESTRICTED IN SOME OVERSEAS COUNTRIES THIS IS GREAT SAYS MR POTTASCH A FEW YEARS AGO JAPAN PULLED AN AD FEATURING RAP SINGER MC HAMMER BECAUSE IT FEATURED COKE AS WELL WELL WE TOLD PEOPLE TO WRITE TO US AND WE WOULD SEND THEM THE BANNED AD THE RESPONSE 100000 VIDEOTAPES WERE SENT I LOVE THIS HE SAYS TO ME LIVING IS DOING RADIO AD REVENUE REBOUNDED 9 TO 957 BILLION IN 1993 FROM 876 BILLION IN 1992 ACCORDING TO THE RADIO ADVERTISING BUREAU AN INDUSTRY GROUP MADE UP OF RADIO STATIONS NETWORKS AND SALES COMPANIES THE INCREASE MARKS THE RADIO BUSINESS'S BEST YEAR SINCE 1985 WHEN GROWTH WAS ALMOST 12 IT WAS A FLAT MARKET IN 1992 WHEN REVENUES INCHED UP JUST 2 IN 1991 INDUSTRY REVENUES DECLINED 28 THE FIRST DECLINE SINCE 1961 THE BUREAU SAID REVENUE GROWTH IN 1994 IS MATCHING GROWTH IN 1993 LOCAL RADIO ADS WHICH MAKE UP ABOUT THREEFOURTHS OF ALL RADIO AD REVENUE WERE UP ABOUT 9 IN 1993 NATIONAL SPOT ADS OR THOSE LOCAL ADS PURCHASED BY NATIONAL ADVERTISERS GREW 10 AND AD REVENUES ON RADIO NETWORKS GREW 8 SAATCHI & SAATCHI CO THE BRITISH AGENCY HOLDING COMPANY SOLD ITS HALL HARRISON COWLEY GROUP AGENCY FOR 15 MILLION 23 MILLION IN STOCK AND CASH TO A COMPANY FORMED BY THE MANAGEMENT OF HALL HARRISON SAATCHI SAID IT WILL RECEIVE 900000 IN REDEEMABLE PREFERENCE SHARES IN THE NEW COMPANY AND 600000 IN CASH HALL HARRISON A REGIONAL UK ADVERTISING AND PUBLICRELATIONS AGENCY IS WELLESTABLISHED AND PROFITABLE SAATCHI SAID IT IS NOT HOWEVER CONSIDERED BY SAATCHI TO BE WITHIN THE COMPASS OF ITS CORE BUSINESS SAATCHI SAID OLYMPIC SPONSORSHIP BAUSCH & LOMB ROCHESTER NY HAS JOINED THE CROWD OF SPONSORS OF US FIGURE SKATER NANCY KERRIGAN THE COMPANY'S RAYBAN SUNGLASSES UNIT SAID IT SIGNED A TWOYEAR AGREEMENT WITH MS KERRIGAN UNDER WHICH SHE WILL WEAR RAYBANS DURING APPEARANCES OFF THE ICE NORM SALIK VICE PRESIDENT OF BAUSCH & LOMB'S EYEWEAR DIVISION SAID HER ROLE IN ADVERTISING WOULD BE LIMITED TO A CONGRATULATORY PRINT AD IF SHE WINS A MEDAL AT THE LILLEHAMMER GAMES ACCOUNT THE DALLAS OFFICE OF BLOOM FCA A UNIT OF FRENCH AGENCY PUBLICIS SAID IT WON AN AD ASSIGNMENT FOR A NEW WOODFINISH PRODUCT ACQUIRED BY ARMOR ALL PRODUCTS CORP AN ALISO VIEJO CALIF UNIT OF MCKESSON CORP FOOTE CONE & BELDING CONTINUES TO HANDLE ARMOR ALL'S BIG CARPRODUCT ACCOUNT 9402020164 940202 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9402020163 940202 TIDEWATER OFFER TO SMALL HOLDERS NEW ORLEANS TIDEWATER INC SAID IT WILL BUY BACK 60000 SHARES OF ITS COMMON STOCK COMMISSIONFREE FROM HOLDERS OF FEWER THAN 100 SHARES THE COMPANY SAID IT WILL PAY A PERSHARE PRICE DETERMINED BY THE AVERAGE CLOSING MARKET PRICE FOR THE STOCK FROM FEB 1 THROUGH MARCH 4 1994 INCLUSIVE SHAREHOLDERS COMMUNICATIONS CORP WILL MANAGE THE PROGRAM WHICH IS OPEN TO HOLDERS OF RECORD FEB 1 AND EXPIRES MARCH 4 A SPOKESWOMAN FOR TIDEWATER AN OWNER AND OPERATOR OF VESSELS THAT SERVICE THE OIL INDUSTRY SAID THE PROGRAM PROVIDES AN INEXPENSIVE WAY FOR SMALL SHAREHOLDERS TO SELL THEIR STOCK AND SAVES THE COMPANY MONEY ASSOCIATED WITH SERVICING THEIR ACCOUNTS 9402020162 940202 INTERNATIONAL US TO ALLOW SPACE DEVICES TO BE IMPORTED POLICY CHANGE ENDS BAN ON ISRAELI TECHNOLOGY FROM BALLISTIC MISSILE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A POLICY CHANGE THAT WILL BROADEN THE FLOW OF SPACELAUNCH TECHNOLOGY INTO THE US THE CLINTON ADMINISTRATION HAS DECIDED TO ALLOW IMPORTS OF EQUIPMENT FROM ISRAEL DERIVED FROM ISRAEL'S BALLISTICMISSILE PROGRAM ACCORDING TO A STATE DEPARTMENT OFFICIAL THE EARLIER PROHIBITION AGAINST THE ISRAELI TECHNOLOGY WAS DROPPED BECAUSE THE ADMINISTRATION CONCLUDED THAT SUCH IMPORTS INVOLVE NO PROLIFERATION RISKS US COMPANIES NOW MAY IMPORT ISRAEL'S SPACELAUNCH VEHICLE CALLED THE SHAVIT WHICH IS CAPABLE OF PLACING SMALL SATELLITES INTO ORBIT THE OFFICIAL SAID SOME PROLIFERATION EXPERTS CRITICIZE THE CHANGE BECAUSE THE SHAVIT IS THE CIVILIAN VERSION OF THE JERICHO II MISSILE WHICH WAS DEVELOPED SECRETLY IN THE 1970S TO CARRY NUCLEAR WARHEADS IMPROVED VERSIONS HAVE A RANGE OF 3000 MILES THE MISSILE IS THOUGHT TO HAVE BEEN DEVELOPED IN PART FROM US AND FRENCH TECHNOLOGY IF THEY THE ISRAELIS CAN COMMERCIALIZE THE MISSILE IT CUTS DOWN THEIR PERUNIT COSTS WHAT WE'RE THE US DOING IS PUTTING DOLLARS INTO A PROLIFERANT COUNTRY'S MISSILE PROGRAM FOR THE FIRST TIME SAID GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL THE DEAL THAT PROVOKED THE POLICY SHIFT INVOLVES ATLANTIC RESEARCH CORP A UNIT OF SEQUA CORP OF NEW YORK ACCORDING TO ISRAELI DIPLOMATS WHO ASKED NOT TO BE IDENTIFIED ATLANTIC RESEARCH IS IMPORTING A SOCALLED APOGEE KICK MOTOR FROM RAFAEL ARMAMENT DEVELOPMENT AUTHORITY WHICH IS PART OF ISRAEL'S DEFENSE MINISTRY THE MOTOR PART OF THE SHAVIT EQUIPMENT IS CONSIDERED SENSITIVE TECHNOLOGY BECAUSE IT GIVES A SATELLITE OR OTHER ROCKET PAYLOAD SUCH AS A WARHEAD THE FINAL PRECISE BOOST ON ITS JOURNEY ACCORDING TO THE ISRAELIS ATLANTIC RESEARCH IS BUYING THE RIGHTS TO MANUFACTURE THE MOTOR IN THE US UNDER ISRAELI LICENSE A SPOKESWOMAN FOR ATLANTIC RESEARCH SAID THE US POLICY SHIFT WILL GIVE US COMPANIES ACCESS TO ISRAELI TECHNOLOGY THAT IS WELLSUITED TO A NEW CLASS OF SMALL COMMERCIAL SATELLITE LAUNCH VEHICLES SHE SAID THE COMPANY HAS WORKING AGREEMENTS WITH TWO ISRAELI COMPANIES THAT MANUFACTURE THE EQUIPMENT RAFAEL AND TAAS ISRAEL INDUSTRIES THE CHANGE IN US IMPORT POLICY WAS CONVEYED TO ISRAEL'S PRIME MINISTER YITZHAK RABIN IN A LETTER FROM PRESIDENT CLINTON ON JAN 16 THE STATE DEPARTMENT OFFICIAL SAID THE SHIFT MIGHT PERMIT IMPORTS OF SPACE TECHNOLOGY FROM OTHER COUNTRIES CURRENTLY THE US IMPORTS VERY LITTLE SPACE TECHNOLOGY HOWEVER IT IS PLANNING TO IMPORT ROCKET MOTORS AND OTHER ITEMS FROM RUSSIA AS PART OF A COLLABORATION ON THE SPACE STATION PROJECT THE SHAVIT DEAL ACCORDING TO AN ISRAELI DIPLOMAT WILL EVENTUALLY ALLOW ISRAEL TO COMPETE IN THE LUCRATIVE US SPACELAUNCH MARKET HENRY SOKOLSKI WHO WORKED ON MISSILE PROLIFERATION PROBLEMS FOR THE BUSH ADMINISTRATION SAID ISRAEL'S CAMPAIGN TO SELL ITS SPACELAUNCH TECHNOLOGY IN THE US BEGAN AT LEAST THREE YEARS AGO AND HAS PROVOKED MUCH INTERNAL OPPOSITION IN THE STATE AND DEFENSE DEPARTMENTS THIS HAS A POLICY PROFILE THAT I DON'T THINK WILL BE WELCOME TO DIPLOMATS WHO ARE TRYING TO PREVENT THE PROLIFERATION OF MISSILE TECHNOLOGY IN THE MIDDLE EAST ASSERTED MR SOKOLSKI WHO SAYS THE NEW POLICY RUNS AGAINST THE SPIRIT OF THE MISSILE TECHNOLOGY CONTROL REGIME UNDER WHICH THE US AND SEVERAL INDUSTRIAL NATIONS ARE ATTEMPTING TO CONTAIN THE SPREAD OF MISSILERELATED ITEMS BY SUBSIDIZING THE MISSILE PROGRAM OF ISRAEL WHICH ISN'T A MEMBER OF THE GROUP THE US APPEARS TO BE UNDERMINING THE POLICY HE SAID 9402020161 940202 TECHNOLOGY & ENVIRONMENT EPA PROPOSAL ON WATERACT REVISIONS SUGGESTS STUDY OF STIFFER CHLORINE LAWS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED DEVELOPING A PLAN FOR REDUCING OR PROHIBITING THE DISCHARGE OF CHLORINE AND CHLORINATED COMPOUNDS INTO BODIES OF WATER THE PROPOSED STUDY WHICH SURPRISED AND DELIGHTED ENVIRONMENTALISTS WAS ONE OF SEVERAL ADMINISTRATION RECOMMENDATIONS ON HOW TO REWRITE THE CLEAN WATER ACT A SENATE SUBCOMMITTEE IS EXPECTED TO CONSIDER CLEANWATER LEGISLATION TODAY THE ADMINISTRATION ENDORSED A NUMBER OF OTHER PROVISIONS IN THE BILL INCLUDING ONES TO INCREASE FEDERAL FUNDS FOR STATE EFFORTS TO IMPROVE WATER SYSTEMS REVERSE A 1987 SUPREME COURT DECISION LIMITING THE SCOPE OF LAWSUITS BROUGHT BY CITIZENS AGAINST INDUSTRIES THAT HAVE VIOLATED THE CLEAN WATER LAW GIVE STATES AND CITIES MORE FLEXIBILITY IN COMPLYING WITH FEDERAL CONTROLS ON THE DISCHARGE OF STORM WATER AND SEWAGE AND ESTABLISH A NEW PROGRAMCRAFTED LARGELY BY THE STATES TO REDUCE RUNOFF OF PESTICIDES AND OTHER POLLUTANTS FROM FARMS CHLORINE WHICH IS WIDELY USED IN THE MANUFACTURE OF PULP AND PAPER IS AN ISSUE OF GROWING CONCERN TO ENVIRONMENTALISTS ITS BYPRODUCTS INCLUDE DIOXIN AND OTHER ORGANOCHLORINES WHICH MAY CAUSE HEALTH EFFECTS RANGING FROM CANCER TO BIRTH DEFECTS AN EPA OFFICIAL SAID THE PROPOSED STUDY WOULD DIFFER FROM A CURRENT AGENCY REVIEW OF THE HEALTH EFFECTS OF DIOXIN BECAUSE IT WOULD TAKE INTO ACCOUNT HOW CHLORINE AND CHLORINATED COMPOUNDS ARE USED BY INDUSTRY AND THE DEGREE TO WHICH THE PUBLIC IS EXPOSED TO THE CHEMICALS THIS IS THE FIRST TIME WE'VE BEEN ABLE TO GIVE UNQUALIFIED PRAISE TO THE ADMINISTRATION SINCE THEY TOOK OFFICE SAID RICK HIND LEGISLATIVE DIRECTOR OF THE GREENPEACE TOXICS CAMPAIGN ENVIRONMENTALISTS WERE CRITICAL IN THE FALL WHEN THE ADMINISTRATION DROPPED A PROPOSAL TO REDUCE FEDERAL USE OF CHLORINEBLEACHED PAPER UNDER THE ADMINISTRATION PROPOSAL A TASK FORCE TO EXAMINE THE HEALTH EFFECTS OF CHLORINE AND CHLORINATED COMPOUNDS WOULD BE CONVENED WITHIN SIX MONTHS AFTER A REVISED CLEANWATER BILL IS PASSED THE STUDY ALSO WOULD EXAMINE THE IMPACT OF THE CHEMICALS ON WILDLIFE THE EPA SAID AFTER REVIEWING THE TASK FORCE'S STUDY THE EPA ADDED THE EPA ADMINISTRATOR SHOULD CONSIDER ANY NUMBER OF APPROPRIATE ACTIONS INCLUDING RESTRICTING OR PROHIBITING USE OF CHLORINE AND CHLORINATED COMPOUNDS UNDER THE PROPOSAL THE EPA ADMINISTRATOR WOULD BE REQUIRED TO MAKE THIS DECISION WITHIN 30 MONTHS OF THE CLEANWATER BILL'S PASSAGE ALTHOUGH CHLORINE IS WIDELY USED TO TREAT DRINKING WATER ENVIRONMENTALISTS HAVE FOCUSED THEIR CONCERNS ABOUT HEALTH EFFECTS ON WASTEWATER DISCHARGES OF THE CHEMICAL BY MANUFACTURERS WHICH END UP IN THE FOOD CHAIN THROUGH FISH AND OTHER ANIMALS A SENATE SUBCOMMITTEE WILL VOTE TODAY ON A CLEANWATER BILL SPONSORED BY SEN BOB GRAHAM D FLA THE GRAHAM BILL DOESN'T INCLUDE THE CHLORINE PROVISION AT A NEWS CONFERENCE YESTERDAY HOWEVER EPA ADMINISTRATOR CAROL BROWNER SEN GRAHAM AND OTHER KEY LAWMAKERS ALL SAID THEY WERE IN AGREEMENT ABOUT MOST PARTS OF THE BILL INDEED SEN GRAHAM'S BILL WAS DEVELOPED IN CONSULTATION WITH THE EPA AND MOST OF YESTERDAY'S RECOMMENDATIONS DUPLICATE PROVISIONS IN THE BILL THERE IS NOT ANY PHILOSOPHICAL DIFFERENCE HERE SAID MS BROWNER UNDER BOTH THE EPA RECOMMENDATIONS AND MR GRAHAM'S BILL THE COST OF THE CLEANWATER LAW TO INDUSTRY AND GOVERNMENT WOULD INCREASE TO 70 BILLION A YEAR ACCORDING TO THE EPA THIS IS 10 BILLION MORE THAN THE ESTIMATED CURRENT COST BUT THE EPA FIGURES THAT IF THE LAW ISN'T CHANGED THE COST WILL RISE TO 100 BILLION A YEAR IN THE NEAR FUTURE THE EPA PLAN AND SEN GRAHAM'S BILL ALSO WOULD EXTEND A STATE REVOLVING LOAN FUND THROUGH SEPTEMBER 2004 AT AS MUCH AS 2 BILLION A YEAR THE FUND WHICH IS DUE TO EXPIRE THIS YEAR IS USED BY STATE AND LOCAL GOVERNMENTS TO BUILD WASTEWATER TREATMENT PLANTS A SEPARATE PROVISION IN BOTH SEN GRAHAM'S BILL AND THE EPA PLAN WOULD OVERTURN A 1987 SUPREME COURT RULING THAT THE LAW ALLOWED COMMUNITIES TO SUE BUSINESS ONLY FOR EXISTING VIOLATIONS OF THE CLEAN WATER ACT AND NOT FOR PAST ONES IN ADDITION FUNDING FOR GRANTS TO FARMERS AIMED AT REDUCING RUNOFF OF CHEMICALS WOULD INCREASE TO 300 MILLION FROM 130 MILLION A YEAR THE BILL WOULD ALSO REQUIRE STATES TO DEVELOP METHODS FOR PROSECUTING FARMERS WHO DON'T COMPLY WITH THE CLEANWATER LAW 9402020160 940202 INTERNATIONAL UNUM CORP UNIT TO AID LLOYD'S PORTLAND MAINE AP A SUBSIDIARY OF INSURER UNUM CORP WILL BE AMONG THE FIRST CORPORATE INVESTORS TO BUY A STAKE IN LLOYD'S OF LONDON TO HELP RESCUE THE BRITISH INSURER FROM MOUNTING LOSSES DUNCANSON & HOLT A NEW YORKBASED REINSURANCE UNDERWRITER WILL INVEST AT LEAST 6 MILLION TO BOLSTER THE FINANCES OF THE 300YEAROLD INSTITUTION UNUM SAID BY PLEDGING THE CAPITAL DUNCANSON & HOLT WILL BE ABLE TO PARTICIPATE IN THE UNDERWRITING OF ABOUT TWICE THAT MUCH IN INSURANCE PREMIUMS 9402020158 940202 MC SHIPPING PLANS OFFERING NEW YORK MC SHIPPING INC WHICH OWNS AND OPERATES SECONDHAND VESSELS SAID IT PLANS TO ACQUIRE MORE VESSELS WITH PROCEEDS FROM A RIGHTS OFFERING FOR 31 MILLION SHARES OF COMMON STOCK SHAREHOLDERS WILL RECEIVE THE RIGHT TO BUY A COMMON SHARE FOR EACH SHARE HELD AS OF THE RECORD DATE EXPECTED TO BE FEB 9 THE SUBSCRIPTION PRICE IS EXPECTED TO BE AT A DISCOUNT TO A RECENT AVERAGE FOR THE SHARES WHICH HAVE TRADED BETWEEN 325 AND 5625 A SHARE IN THE LAST MONTH SHARES OF MC SHIPPING CLOSED UP 25 CENTS AT 5625 ON MORE THAN FIVE TIMES AVERAGE VOLUME IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9402020157 940202 REVIEW & OUTLOOK EDITORIAL ASIDES BRITS HAVE A POINT SO WHY DID BILL CLINTON LET SINN FEIN LEADER GERRY ADAMS INTO THE UNITED STATES BRITISH FOREIGN SECRETARY DOUGLAS HURD SPOKE SEVERELY ABOUT THE DECISION YESTERDAY NORTHERN IRELAND IS ENGLAND'S MOST NEURALGIC PROBLEM SO IT'S MORE THAN A LITTLE DIFFICULT TO SEE HOW MR CLINTON JUSTIFIES PICKING AT THAT SORE AND CAUSING THE BRITS PROBLEMS THEY DIDN'T ASK FOR PERHAPS PAT MOYNIHAN'S SUPPORT FOR ADMITTING MR ADAMS AND HIS CRITICISM OF THE CLINTON HEALTH PLAN HAS A LITTLE TO DO WITH IT 9402020156 940202 GLIMCHER BUYS SHOPPING CENTERS COLUMBUS OHIO GLIMCHER REALTY TRUST SAID IT ACQUIRED A COMMERCIAL REALESTATE PORTFOLIO OF 46 SHOPPING CENTERS FROM CLOSELY HELD CONCORD ASSETS GROUP OF BOCA RATON FLA TERMS WEREN'T DISCLOSED THE ACQUISITIONS WHICH COVER 18 STATES INCLUDE 33 COMMUNITY CENTERS 12 SINGLETENANT RETAIL PROPERTIES AND ONE REGIONAL SHOPPING CENTER GLIMCHER SAID IT CLOSED ON THE ACQUISITION BY USING THE PROCEEDS FROM ITS JAN 26 INITIAL PUBLIC OFFERING GLIMCHER SAID IT NOW OWNS A TOTAL OF 75 PROPERTIES IN 20 STATES 9402020155 940202 INTERNATIONAL SOUTH KOREA POSTS TRADE GAP SEOUL SOUTH KOREA'S TRADE BALANCE REGISTERED A DEFICIT OF 147 BILLION IN JANUARY ENDING THE PAST FOUR STRAIGHT MONTHS OF SURPLUSES AS A RESULT OF A HEFTY RISE IN IMPORTS THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID IN A PRELIMINARY REPORT THE MINISTRY SAID THAT THE NATION'S EXPORTS ROSE 14 TO 609 BILLION IN JANUARY FROM 533 BILLION A YEAR EARLIER IMPORTS GAINED A HEFTY 20 TO 756 BILLION FROM 630 BILLION THE YEAR EARLIER 9402020154 940202 MARKETING & MEDIA PEPSICO'S PROFIT JUMPED BY 67 IN ITS 4TH QUARTER BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC POSTED A 67 GAIN IN FISCAL FOURTHQUARTER NET INCOME REFLECTING STRONGER DOMESTIC SNACKFOOD AND RESTAURANT SALES AND A RESTRUCTURING CHARGE A YEAR EARLIER THE PURCHASE NY BEVERAGE FOOD AND RESTAURANT CONCERN SAID EARNINGS FOR THE QUARTER ENDED DEC 25 1993 ROSE TO 4425 MILLION OR 55 CENTS A SHARE FROM 2656 MILLION OR 32 CENTS A SHARE A YEAR EARLIER THE 1992 QUARTER INCLUDED RESTRUCTURING CHARGES OF 1285 MILLION OR 16 CENTS A SHARE FOURTHQUARTER SALES ROSE 14 TO 772 BILLION FROM 68 BILLION THE PERSHARE RESULTS FELL A COUPLE OF CENTS SHORT OF ANALYSTS' FORECASTS REFLECTING THE DILUTIVE EFFECT OF ACQUISITIONS DURING THE YEAR AND CONTINUED PROBLEMS WITH INTERNATIONAL RESTAURANT RESULTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PEPSI CLOSED AT 39625 A SHARE OFF 75 CENTS IN SOFT DRINKS ANALYSTS SAID TRADITIONAL CARBONATED BEVERAGES ARE SHOWING SLUGGISH GROWTH BECAUSE OF A SHIFT AMONG CONSUMERS TO OTHER DRINKS BUT PEPSI'S BEVERAGE OPERATING PROFIT GREW 10 LARGELY BECAUSE OF SALES OF ALTERNATIVE DRINKS SUCH AS LIPTON ICED TEA AND OCEAN SPRAY FRUIT DRINKS PEPSICO'S RESTAURANT BUSINESS SHOWED STRONG GROWTH IN US MARKETS SALES AT OUTLETS OPEN AT LEAST A YEAR ROSE 5 AT PIZZA HUT 10 AT KFC AND 7 AT TACO BELL KFC WHICH HAD BEEN A DISAPPOINTMENT TO ANALYSTS HAD ITS BEST QUARTER SINCE PEPSICO ACQUIRED IT IN 1987 THANKS TO A ROTISSERIE CHICKEN PRODUCT WHICH APPEALS TO A DIFFERENT SEGMENT OF CONSUMERS THAN ITS TRADITIONAL FRIED MEALS THAT PRODUCT MAY BRING IN MORE WHITECOLLAR SUBURBAN CUSTOMERS WHO KNOW THEIR CHOLESTEROL COUNTS SAYS JOSEPH J DOYLE ANALYST AT SMITH BARNEY SHEARSON INC BUT PEPSICO IS STILL STRUGGLING WITH KFC'S INTERNATIONAL BUSINESS FACING A CONTINUING DECLINE IN AUSTRALIA MCDONALD'S CORP HAS ADOPTED ITS VALUE MENUS IN THAT MARKET SO KFC MEALS ARE COMPARATIVELY OVERPRICED MR DOYLE SAID THE SOFT PERFORMANCE OVERSEAS OFFSET THE STRONG DOMESTIC PERFORMANCE AT KFC AS A RESULT KFC'S FOURTHQUARTER PROFIT FELL 16 PROFITS FOR ALL OF PEPSICO'S INTERNATIONAL RESTAURANT OPERATIONS FELL 41 IN SNACK FOODS PEPSICO'S NEW DORITOS TORTILLA THINS ROLD GOLD PRETZELS AND OTHER PRODUCTS BOOSTED FOURTHQUARTER OPERATING PROFIT IN THAT SEGMENT BY 12 9402020153 940202 ICN HOLDERS CAST BIG VOTE FOR CHAIRMAN MOVE REBUFFS CAMPAIGN BY STOCKBROKER TO OUST FOUNDER AND HIS BOARD BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL COSTA MESA CALIF ICN PHARMACEUTICALS INC SAID SHAREHOLDERS OVERWHELMINGLY VOTED TO BACK MILAN PANIC ICN'S FOUNDER AND LONGTIME CHAIRMAN REBUFFING A 10MONTH CAMPAIGN BY STOCKBROKER RAFI KHAN TO OUST MR PANIC AND HIS BOARD THE DRUG HOLDING COMPANY SAID MORE THAN 90 OF THE VOTES CAST WENT TO THE MANAGEMENT SLATE BUT IT DECLINED TO GIVE A MORE SPECIFIC VOTE COUNT UNTIL THE FINAL VOTE IS TALLIED MR PANIC PRESIDING CONFIDENTLY OVER THE ANNUAL MEETING IN THE COMPANY'S CAFETERIA HERE HAILED THE OUTCOME MR PANIC RETURNED TO ICN LAST YEAR AFTER A NINEMONTH STINT AS PRIME MINISTER OF WARTORN YUGOSLAVIA THE SHAREHOLDERS HAVE SPOKEN DEMONSTRATING THAT CAPITALISM TRULY FUNCTIONS MR PANIC SAID HE SAID THE MARGIN IN HIS FAVOR WAS ONE OF THE LARGEST EVER IN A PROXY FIGHT INVOLVING A NEW YORK STOCK EXCHANGELISTED COMPANY MOST OF THE TWOHOUR MEETING WAS A SALES PITCH FOR ICN AND ITS THREE PUBLICLY TRADED AFFILIATES MR KHAN WHO CLASHED WITH MR PANIC ONLY BRIEFLY DURING THE TIGHTLY CONTROLLED MEETING CONCEDED DEFEAT BUT ANGRILY CHALLENGED THE VOTE TALLY HE CLAIMED TO HAVE CARRIED ABOUT TWO MILLION SHARES OR ABOUT 16 OF THE 125 MILLION SHARES ICN SAID WERE CAST ICN HAS 204 MILLION SHARES OUTSTANDING AT A NEWS BRIEFING AFTER THE MEETING MR PANIC DISMISSED THE APPARENT VOTETALLY DISCREPANCY AS UNIMPORTANT AFTER THE MEETING MR KHAN LASHED OUT AT THE PRESS FOR ALLEGED ERRORS THAT HE SAID DAMAGED HIS REPUTATION AND DISCREDITED HIM WITH SHAREHOLDERS ICN'S THREE LARGEST INSTITUTIONAL INVESTORS INCLUDING INVESCO MIM PLC BASED IN LONDON WITH A 64 STAKE VOTED WITH MANAGEMENT PARTLY BECAUSE OF HIGHLY PUBLICIZED AND BASELESS ALLEGATIONS OF IMPROPER DEALINGS WITH HIM MR KHAN SAID MR KHAN SAID HIS SUPPORT CAME FROM SMALLER INSTITUTIONS WITH 50000 TO 200000 SHARES OF ICN STOCK WHOSE NAMES HADN'T CROPPED UP IN REPORTS OF THE BITTER BATTLE HE DIDN'T IDENTIFY THEM WHEN MR KHAN LAUNCHED HIS ATTACK ON ICN MANAGEMENT LAST APRIL HE FREELY USED THE NAME OF INVESCO AND OTHER LARGE HOLDERS BOASTING THAT HE WOULD BE SHOCKED IF THEY DIDN'T SUPPORT HIM SEVERAL SHAREHOLDERS AT THE MEETING SAID THEY VOTED WITH MANAGEMENT BUT THOUGHT THAT MR KHAN HAD RAISED SOME VALID CONCERNS ONE TEXAS INVESTOR THANKED MR PANIC FOR HIS HUMANITARIAN EFFORTS IN YUGOSLAVIA BUT COMPLAINED THAT ICN PRIVATE STOCK PLACEMENTS IN EUROPE LAST YEAR WEREN'T PROPERLY DISCLOSED ANOTHER HOLDER COMPLAINED THAT ICN LACKED INDEPENDENT BOARD MEMBERS WITH STRONG BUSINESS BACKGROUNDS MR PANIC DISAGREED WITH THAT ASSESSMENT HE INDICATED THAT THE COMPANY HAS AN EVEN STRONGER NEED FOR SCIENTIFIC ADVISERS ON THE BOARD WHO CAN HELP MAKE MAJOR STRATEGIC DECISIONS ABOUT DEVELOPMENT OF THE COMPANY'S RIBAVIRIN ANTIVIRAL DRUG AND OTHER DRUG RESEARCH SHAREHOLDERS REELECTED THE ENTIRE MANAGEMENT SLATE OF NINE DIRECTORS FOLLOWING THE SHAREHOLDERS MEETING DIRECTORS ELECTED A 10TH DIRECTOR MICHAEL SMITH A CHEMIST FROM THE UNIVERSITY OF BRITISH COLUMBIA VANCOUVER AND A 1993 NOBEL PRIZE WINNER FOR CHEMISTRY DR SMITH'S ELECTION WAS A STEP TOWARD FULFILLING A PROMISE TO SHAREHOLDERS TO ADD TWO OUTSIDE DIRECTORS IN RECENT MONTHS THE COMPANY HAS STARTED A DIALOGUE WITH ITS SHAREHOLDERS THAT WILL CONTINUE MR PANIC PLEDGED THE COMPANY HAS DELIBERATELY DECIDED NOT TO PROMOTE ITSELF MR PANIC SAID AFTER GOVERNMENT CENSURE AND CRITICISM OF ITS ATTEMPTS TO PROMOTE RIBAVIRIN AS AN AIDS TREATMENT SEVERAL YEARS AGO MR PANIC ALSO SAID ICN HAS A FIVEYEAR GOAL OF BECOMING A WORLD CLASS PHARMACEUTICAL COMPANY UNDER THAT PLAN THE COMPANY'S 42OWNED SPI PHARMACEUTICALS INC AFFILIATE WOULD ACHIEVE 2 BILLION IN ANNUAL SALES A FOURFOLD INCREASE FROM CURRENT ANNUAL SALES FOR SPI OTHER ICN AFFILIATES ARE VIRATEK INC AND ICN BIOMEDICALS INC MUCH OF THE MEETING WAS DEVOTED TO UPBEAT FINANCIAL AND SCIENTIFIC PRESENTATIONS BY MR PANIC AND OTHER EXECUTIVES FOR HIS PART MR KHAN WOULDN'T SAY WHETHER HE INTENDS TO TRY AGAIN TO TAKE CONTROL OF THE ICN BOARD HE SAID HE IS NEARLY BROKE AFTER HAVING SPENT ABOUT 2 MILLION ON HIS FIGHT TO REPLACE ICN DIRECTORS WITH HIS OWN SLATE ICN HAS SPENT CLOSE TO 4 MILLION TO DEFEND ITSELF MR PANIC SAID MR KHAN NOW FACES LEGAL CHARGES OF PERJURY AND INSIDER TRADING IN A NEW YORK COURT CASE BROUGHT BY ICN IN THE NEAR TERM MR KHAN SAID I WILL LOOK TO CLEAR MY NAME 9402020152 940202 WHO'S NEWS ACTION PRODUCTS INTERNATIONAL INC ACTION PRODUCTS INTERNATIONAL INC OCALA FLA RON KAPLAN VICE PRESIDENT OF SALES AND MARKETING WAS NAMED PRESIDENT OF THIS GIFT AND SNACK MAKER MR KAPLAN 28 YEARS OLD SUCCEEDS HIS FATHER WARREN KAPLAN 56 HIS WIFE JUDITH KAPLAN REMAINS CHIEF EXECUTIVE OFFICER A COMPANY SPOKESPERSON SAID THE CHANGE FOLLOWS THE EXPIRATION OF THE SENIOR MR KAPLAN'S EMPLOYMENT CONTRACT AND GIVES THE COMPANY A MORE AGGRESSIVE LEADER THE KAPLANS DECLINED FURTHER COMMENT 9402020151 940202 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON ROBERT C LOWES 48 YEARS OLD DEPUTY GROUP FINANCE DIRECTOR WAS NAMED CHIEF EXECUTIVE OFFICER OF GRANDMET FOODS EUROPE SUCCEEDING PETER THOMPSON WHO RESIGNED 9402020150 940202 CORRECTIONS & AMPLIFICATIONS TWO ARKANSAS STATE AGENCIES RENTED SPACE IN AN OFFICE BUILDING AND A RENOVATED SERVICE STATION OWNED BY MADISON GUARANTY SAVINGS & LOAN IN 1985 FOR A TOTAL OF 7432 A MONTH AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE RENT ON THE SERVICE STATION ALONE TOTALED 7432 MOUNT MITCHELL IN NORTH CAROLINA IS THE HIGHEST PEAK IN THE SOUTHEAST IN A PAGEONE ARTICLE JAN 25 ABOUT SKIING IN THE REGION BEECH MOUNTAIN WAS INCORRECTLY IDENTIFIED AS THE TALLEST POINT RATHER BEECH MOUNTAIN IS THE HIGHEST SKI AREA IN THE SOUTHEAST TRIARC COS' SHARES ARE TRADED ON THE NEW YORK STOCK EXCHANGE YESTERDAY'S ABREAST OF THE MARKET COLUMN INCORRECTLY SAID THE COMPANY'S STOCK IS TRADED ON THE AMERICAN STOCK EXCHANGE REP BOB LIVINGSTON OF LOUISIANA IS ONE OF THREE REPUBLICANS SEEKING DATA FROM THE SECURITIES AND EXCHANGE COMMISSION ABOUT HILLARY RODHAM CLINTON'S INVESTMENTS AN ARTICLE YESTERDAY INCORRECTLY CALLED HIM BOB LANCASTER UPJOHN CO SAID WORLDWIDE SALES OF ITS HALCION SLEEPING PILL ROSE 1 IN THE FOURTH QUARTER FROM A YEAR EARLIER AN ARTICLE YESTERDAY INCORRECTLY STATED THAT HALCION SALES WERE OFF 1 FOR THE PERIOD THE FIRST TWO CLASSES OF A SOCIETY NATIONAL BANK 2347 MILLION STUDENTLOAN ASSETBACKED SECURITIES ISSUE HAVE 9 SUBORDINATION THE BANK IS A UNIT OF SOCIETY CORP THE SUBORDINATION IS THE PORTION OF THE ISSUE SET ASIDE TO PROTECT HOLDERS OF THE FIRST TWO CLASSESA1 AND A2FROM LOSS THE HOLDERS OF THESE TWO CLASSES HAVE THE RIGHT TO RECEIVE PRINCIPAL AND INTEREST BEFORE THE HOLDERS OF THE THIRD CLASS B1 THE FIRST TWO CLASSES ARE FLOATINGRATE NOTES AND THE THIRD CLASS IS FLOATINGRATE CERTIFICATES IN FRIDAY'S NEW SECURITIES ISSUES COLUMN THE SUBORDINATION OF THE FIRST TWO CLASSES WAS MISSTATED AS 10 AND THE THIRD CLASS WAS MISIDENTIFIED AS A3 9402020149 940202 MONTGOMERY WARD TO BUY LECHMERE IN MOVE TO EXPAND ITS SPECIALTY STORES BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO MONTGOMERY WARD & CO IN ITS FIRST MAJOR PURCHASE SINCE IT WENT PRIVATE IN 1988 SAID IT AGREED TO BUY LECHMERE INC AN APPLIANCE AND CONSUMERELECTRONICS RETAILER BASED IN WOBURN MASS THE ACQUISITION TAKES GENERAL MERCHANDISER MONTGOMERY WARD A STEP FURTHER IN ITS PLANS TO EXPAND ITS GEOGRAPHICAL REACH AND OPEN MORE SPECIALTY STORES MONTGOMERY WARD LAST MONTH SAID IT PLANNED TO OPEN SIX STORES THIS YEAR THAT SELL ONLY CONSUMER ELECTRONICS APPLIANCES AND FURNITURE DETAILS OF THE LECHMERE TRANSACTION FINALIZED LAST WEEKEND WEREN'T DISCLOSED AS BOTH COMPANIES ARE CLOSELY HELD BUT A SOURCE FAMILIAR WITH THE DEAL SAID MONTGOMERY WARD IS PAYING ABOUT 750 MILLION MONTGOMERY WARD DID SAY IT WILL FINANCE THE DEAL PRIMARILY THROUGH BORROWINGS AND WILL ASSUME ABOUT 100 MILLION OF LECHMERE'S LONGTERM DEBT LECHMERE WHOSE 24 STORES GENERATED SALES OF 800 MILLION LAST YEAR WILL OPERATE AS A SEPARATE COMPANY UNDER ITS OWN NAME SAID MONTGOMERY WARD OFFICIALS ADDED THAT IT ISN'T YET KNOWN WHO IF ANY AMONG LECHMERE'S MANAGEMENT WILL STAY ON TO RUN THE COMPANY WHICH EMPLOYS ABOUT 5000 PEOPLE THE ACQUISITION WHICH IS EXPECTED TO BE COMPLETED BY EARLY APRIL WILL BRING SYNERGIES TO MONTGOMERY WARD ACCORDING TO CHAIRMAN BERNARD F BRENNAN BOTH COMPANIES ARE MAJOR SELLERS OF APPLIANCES AND ELECTRONICS MONTGOMERY WARD THROUGH ITS ELECTRIC AVENUE STORESWITHINSTORES BUT MR BRENNAN NOTED THAT LECHMERE ALSO IS STRONG IN AREAS IN WHICH MONTGOMERY WARD ISN'T SUCH AS HOUSEWARES HOMEOFFICE PRODUCTS AND PRERECORDED MUSIC WHAT'S MORE MONTGOMERY WARD HAS ONLY 14 OF ITS 360 STORES IN LECHMERE'S TERRITORY NEW ENGLAND AND UPSTATE NEW YORK OF THOSE ONLY FOUR ARE LOCATED IN MARKETS ALSO SERVED BY LECHMERE MR BRENNAN SAID LECHMERE STANDS TO GAIN LEVERAGE WITH SUPPLIERS THROUGH MONTGOMERY WARD'S MORE FORMIDABLE BUYING POWER MONTGOMERY WARD EXPECTS TO ANNOUNCE 1993 SALES OF 6 BILLION ALL TOLD THE COMPANIES OVERLAP IN PRODUCT CATEGORIES WHOSE COMBINED SALES AMOUNT TO 4 BILLION HE SAID DESPITE THE SYNERGIES AND SYMMETRY BOTH COMPANIES ARE STRUGGLING WITH THE SAME PROBLEM INTENSE PRICE COMPETITION FROM APPLIANCE AND CONSUMERELECTRONICS RETAILERS SUCH AS CIRCUIT CITY STORES INC AND FRETTER INC SUCH PRESSURES CONTRIBUTED TO THE MEAGER 2 OPERATINGEARNINGS GAIN MONTGOMERY WARD RECORDED IN THE FIRST THREE QUARTERS OF 1993 THE SOLUTION FOR ONE IS THE SOLUTION FOR THE OTHER SAID STEVE HERMAN A SUDBURY MASS RETAIL CONSULTANT HE ADDED THAT LECHMERE COULD BENEFIT FROM MR BRENNAN'S WELLKNOWN ABILITY TO CUT COSTS AND REDUCE DEBT LECHMERE FACES THE ADDITIONAL CHALLENGE OF DOING BUSINESS IN NEW ENGLAND CLEARLY THE NEW ENGLAND ECONOMY IS NOT THE FASTEST GROWING IN THE COUNTRY SAID MONTGOMERY WARD'S MR BRENNAN BUT I FIRMLY BELIEVE THAT IF YOU HAVE THE LOCATIONS THE DOMINANT MARKET SHARE AND THE NAME THEN YOU'RE GOING TO GET MORE THAN YOUR SHARE OF BUSINESS LECHMERE WAS TAKEN PRIVATE IN A 1989 MANAGEMENTLED LEVERAGED BUYOUT THAT WAS FINANCED BY BERKSHIRE PARTNERS A BOSTON BUYOUT SPECIALIST MR HERMAN THE RETAIL CONSULTANT SAID THE PRIVATE SALE TO MONTGOMERY WARD IS AN INDICATION THAT LECHMERE LACKS CONFIDENCE IN ITS ABILITY TO MAKE A SUCCESSFUL PUBLIC OFFERING MR BRENNAN LED A 38 BILLION LEVERAGED BUYOUT OF MONTGOMERY WARD IN 1988 9402020148 940202 TENNECO REPORTS 4THQUARTER PROFIT REVERSING '92 LOSS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC SWUNG TO A PROFIT IN THE FOURTH QUARTER FROM A SIZABLE LOSS A YEAR AGO AFTER RESTRUCTURING CHARGES AND SAID IT ISN'T CURRENTLY PLANNING TO SELL ITS LARGEST UNIT THE CASE CORP FARMEQUIPMENT MAKER TENNECO REPORTED FOURTHQUARTER NET INCOME OF 150 MILLION OR 83 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 826 MILLION OR 563 A SHARE THE MOST RECENT QUARTER'S RESULTS INCLUDE A GAIN OF 10 MILLION ON THE SALE OF CERTAIN ASSETS AND A GAIN OF 27 MILLION FROM THE SALE OF CUMMINS ENGINE CO STOCK THE 1992 QUARTER INCLUDED A RESTRUCTURING CHARGE OF 843 MILLION AND A LOSS OF 12 MILLION FROM A PENALTY FOR EARLY RETIREMENT OF DEBT REVENUE ROSE 2 TO 338 BILLION FROM 331 BILLION DANA MEAD TENNECO'S PRESIDENT AND CHIEF OPERATING OFFICER SAID THAT TENNECO'S CASE DIVISION WHICH HAS STRUGGLED FINANCIALLY IN RECENT YEARS WAS THE BIGGEST CONTRIBUTOR TO THE IMPROVED YEARLY RESULTS POSTING OPERATING PROFIT OF 82 MILLION COMPARED WITH A LOSS OF 260 MILLION BEFORE RESTRUCTURING CHARGES A YEAR AGO NEVERTHELESS MR MEAD RESPONDED TO QUESTIONS ABOUT SPECULATION ON WALL STREET THAT TENNECO IS PLANNING TO SELL CASE BY SAYING WE HAVE ALWAYS SAID WE'RE OPPORTUNISTIC AND WANT TO IMPROVE SHAREHOLDER VALUE BUT HE ADDED WE HAVEN'T PUT IT ON THE BLOCK WE'RE NOT OUT PEDDLING IT HE ALSO SAID TENNECO HASN'T BEEN APPROACHED BY A PROSPECTIVE BUYER SOME SECURITIES ANALYSTS SAY A MORE LIKELY STRATEGY IS TO MAKE AN INITIAL PUBLIC OFFERING OF CASE OR TO SPIN IT OFF TO SHAREHOLDERS AS A SEPARATE COMPANY MR MEAD DECLINED TO COMMENT ON THOSE OPTIONS RONALD BARONE A KIDDER PEABODY ANALYST SAID MY GUESS IS THAT IF THEY'RE EVER GOING TO DO ANYTHING WITH IT THIS WILL BE THE YEAR THEN THEY CAN USE THE PROCEEDS FOR HIGHERRETURN BUSINESSES SEPARATELY MR MEAD SAID THAT MICHAEL WALSH TENNECO'S CHAIRMAN AND CHIEF EXECUTIVE CONTINUES RECOVERING FROM BRAIN SURGERY LAST WEEKEND HE SAID THAT ALTHOUGH IT'S UNCLEAR WHEN MR WALSH WILL RETURN TO WORK WE EXPECT IT WILL BE WITHIN A REASONABLE PERIOD OF TIME FOR THE YEAR TENNECO REPORTED NET INCOME OF 426 MILLION OR 244 A SHARE COMPARED WITH A LOSS OF 132 BILLION OR 929 A SHARE A YEAR AGO THE MOST RECENT YEAR'S RESULTS INCLUDE A PENALTY OF 25 MILLION FROM EARLY RETIREMENT OF DEBT THE PREVIOUS YEAR'S RESULTS INCLUDE A RESTRUCTURING CHARGE OF 843 MILLION AND A CHARGE OF 699 MILLION FROM A CHANGE IN ACCOUNTING METHODS REVENUE EDGED UP TO 1326 BILLION FROM 1314 BILLION TENNECO ALSO SAID IT EXPECTS TO TAKE A FIRSTQUARTER CHARGE OF 39 MILLION OR 22 CENTS A SHARE FROM AN ACCOUNTING CHANGE FOR THE YEARAGO FIRST QUARTER THE COMPANY HAD NET INCOME OF 74 MILLION OR 46 CENTS A SHARE ON REVENUE OF 325 BILLION 9402020146 940202 NORTHEAST STATES ENDORSE TOUGH EMISSIONS RULES MOVE IS SETBACK FOR DETROIT AS PLAN IN EFFECT CALLS FOR SALE OF ELECTRIC CARS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT ENVIRONMENTAL REGULATORS IN THE NORTHEAST VOTED IN FAVOR OF ADOPTING STRINGENT CALIFORNIASTYLE VEHICLEEMISSIONS RULES THAT WOULD IN EFFECT REQUIRE THE SALE OF ELECTRIC CARS DEALING A SETBACK TO THE AUTO INDUSTRY AS A RESULT OF A VOTE BY REGULATORS MEETING IN WASHINGTON AN ORGANIZATION REPRESENTING 12 STATES AND THE DISTRICT OF COLUMBIA WILL PETITION THE ENVIRONMENTAL PROTECTION AGENCY TO IMPOSE A REGIONAL VEHICLEEMISSIONS PROGRAM SIMILAR TO THAT ADOPTED INDEPENDENTLY BY CALIFORNIA AMONG OTHER THINGS THE CALIFORNIA PROGRAM REQUIRES MAJOR AUTO MAKERS TO SELL ZEROEMISSION VEHICLES SUCH AS THOSE POWERED BY ELECTRICITY BEGINNING IN 1998 THE AUTO INDUSTRY LED BY DETROIT'S BIG THREE HAS BEEN FIGHTING THE NORTHEAST REGULATORS' MOVE TOWARD FILING SUCH A PETITION ARGUING CHIEFLY AGAINST THE ZEROEMISSIONVEHICLE ASPECTS YESTERDAY THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID IT STANDS BY AN ALTERNATIVE PROPOSAL THAT IT OUTLINED LATE LAST YEAR THAT PROPOSAL CALLS FOR INTRODUCING VEHICLES THAT ARE CLEANER THAN CURRENTLY REQUIRED UNDER THE CLEAN AIR ACT BUT NOT ELECTRIC VEHICLES WE STAND READY TO WORK WITH THE STATE REGULATORS TOWARD THE END OF ADOPTING SOMETHING THAT MEANS SOMETHING TO CONSUMERS AN INDUSTRY SPOKESMAN SAID YESTERDAY THE NORTHEAST REGULATORS TOGETHER MAKE UP THE OZONE TRANSPORT COMMISSION A POLICY BOARD CREATED UNDER THE CLEAN AIR ACT TO ADDRESS THE REGION'S AIRQUALITY PROBLEMS EIGHT STATES AND THE DISTRICT OF COLUMBIA VOTED FOR THE PROPOSAL MORE THAN ENOUGH VOTES FOR IT TO MOVE AHEAD NOW THE RECOMMENDATION MOVES TO THE EPA FOR A NINEMONTH EVALUATION PERIOD DURING WHICH SOME OF THE REGULATORS HOPE TO HEAR DIFFERENT ALTERNATIVE PROPOSALS FROM DETROIT EVEN THOUGH IT FOCUSES ON THE BENEFITS OF THE CALIFORNIA PROGRAM THE RECOMMENDATION OFFERS THE FULL FLEXIBILITY TO COME UP WITH AN ALTERNATIVE SAID TIM KEENEY THE COMMISSION'S VICE CHAIRMAN AND CONNECTICUT'S COMMISSIONER FOR ENVIRONMENTAL PROTECTION STILL STAUNCH SUPPORTERS OF CALIFORNIA'S ZEROEMISSION MANDATE HAILED THE 94 VOTE AS A STRONG VICTORY THOSE VOTING IN FAVOR INCLUDED STATES SUCH AS NEW YORK AND MASSACHUSETTS THOSE TWO STATES ALREADY HAVE PROGRAMS MODELED ON CALIFORNIA'S THAT HAVE INCURRED LAWSUITS FROM THE INDUSTRY I THINK THIS REALLY MOVES THE DEBATE OVER THE CAR OF THE 21ST CENTURY FORWARD SAID DANIEL GREENBAUM COMMISSIONER FOR ENVIRONMENTAL PROTECTION IN MASSACHUSETTS THE BIG THREE HAVE OPPOSED THE NORTHEAST EFFORT BECAUSE OF ITS SALES MANDATE FOR ZEROEMISSION VEHICLES AN INITIATIVE THEY HAVE BEEN WORKING TO SQUELCH IN CALIFORNIA DETROIT EVEN OFFERED A COUNTERPROPOSAL THAT EXCLUDED ZEROEMISSION VEHICLES BUT IT FAILED TO GARNER WIDESPREAD SUPPORT 9402020145 940202 BROADCASTING BROADCASTERS TO SEEK WIDER SPECTRUM USE BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TELEVISION BROADCASTERS ARE EXPECTED TO ASK CONGRESS TODAY TO LET THEM USE SOME OF THEIR SPECTRUM FOR OTHER PURPOSES INCLUDING SENDING DATA TO LAPTOP COMPUTERS FACSIMILE MACHINES AND PAGERS TVSTATION OWNERS SAY THEY NEED CONGRESS'S HELP IN ORDER TO PROVIDE COMPETITION TO CABLE OPERATORS AND TELEPHONE COMPANIES FOR ADVANCED TELECOMMUNICATIONS SERVICES BUT THE BID FOR FLEXIBILITY IS ALREADY RAISING HACKLES AMONG OPPONENTS WHO SAY THE PUBLIC SHOULD GET A CHANCE TO ACQUIRE ANY SPECTRUM BROADCASTERS DON'T NEED FOR THEIR TELEVISION SIGNALS IN PARTICULAR POLICE AND FIRE DEPARTMENTS DEFINITELY NEED IT DESPERATELY SAYS JOHN LANE A WASHINGTON LAWYER REPRESENTING LOCAL GOVERNMENTS IN A FIGHT FOR ADDITIONAL SPECTRUM HE SAID PUBLICSAFETY OFFICIALS COULD USE THE SPECTRUM FOR COMMUNICATIONS SERVICES THAT COULD MOVE FINGERPRINTS MUG SHOTS AND XRAYS TO WORKERS IN THE FIELD TWO YEARS AGO THOSE GROUPS LOST OUT WHEN THE FEDERAL COMMUNICATIONS COMMISSION DECIDED TO AWARD ADDITIONAL CHUNKS OF SPECTRUM TO BROADCASTERS SO THAT THEY COULD MAKE THE TRANSITION TO DIGITAL HIGHDEFINITION TELEVISION BROADCASTING BUT HDTV IS FACING INCREASING SKEPTICISM WITHIN THE INDUSTRY ESPECIALLY BECAUSE OF UNCERTAINTY OVER HOW TV STATIONS WOULD PAY FOR THE HUGE COSTS WHILE BROADCASTERS INSIST THEY AREN'T GIVING UP ON HDTV THEY'RE INCREASINGLY PRESSING FOR THE RIGHT TO MIX OTHER SERVICES ON EITHER THEIR EXISTING CHANNELS OR THEIR NEW DIGITAL CHANNELS IN TESTIMONY PREPARED FOR A HOUSE TELECOMMUNICATIONS SUBCOMMITTEE TODAY THE NATIONAL ASSOCIATION OF BROADCASTERS SAYS TELEVISION STATIONS COULD SEND DATA TO PAGERS FACSIMILE MACHINES OR LAPTOP COMPUTERS OR COULD PROVIDE DETAILED INFORMATION ABOUT A CAR'S PRICE OR DEALERS ALONG WITH A CAR COMMERCIAL BUT THE TRADE GROUP SAYS IT NEEDS A NEW REGULATORY FRAMEWORK THE BROADCASTERS ARE SEEKING CONGRESSIONAL HELP BECAUSE THE FCC APPEARS UNLIKELY TO ALLOW BROADCASTERS SUCH FLEXIBILITY ESPECIALLY ON THE NEW HDTV CHANNEL WHAT WE DON'T WANT TO HAPPEN IS ANY STEP THAT WOULD PROLONG THE INTRODUCTION OF HDTV SAID THOMAS STANLEY THE FCC'S CHIEF ENGINEER BROADCASTERS HAVE BEEN LOBBYING MEMBERS OF CONGRESS TO AMEND A HOUSE BILL THAT WOULD ALLOW CABLE AND TELEPHONE COMPANIES TO COMPETE MORE EASILY REPRESENTATIVES OF THE BROADCASTERS ASSOCIATION MET SEVERAL WEEKS AGO WITH THE STAFF OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE WHICH IS CONSIDERING THE BILL SPONSORED BY SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS PRESTON PADDEN EXECUTIVE VICE PRESIDENT OF NEWS CORP'S FOX BROADCASTING CO SAID HE GOT A FAVORABLE RECEPTION YESTERDAY FROM THE STAFF OF REP JACK FIELDS R TEXAS A COSPONSOR OF THE HOUSE BILL FOX IS SEEKING THE RIGHT TO PROVIDE SEVERAL NEW CHANNELS ALONG WITH HDTV ON ITS NEW SPECTRUM MR FIELDS'S STAFF COULDN'T BE REACHED FOR COMMENT EVEN IF THE BROADCASTERS DO WIN SUPPORT IN CONGRESS THEY STILL FACE OBSTACLES ANDREW SCHWARTZMAN EXECUTIVE DIRECTOR OF THE MEDIA ACCESS PROJECT WHICH OPPOSED THE GRANT OF SPECTRUM TO EXISTING BROADCASTERS SAID THE SUPREME COURT HAS GUARANTEED THE PUBLIC THE RIGHT TO COMPETE FOR SPECTRUM WHEN IT BECOMES AVAILABLE ALSO MR SCHWARTZMAN SAID THAT IF TV STATIONS CRAM NEW CHANNELS INTO THEIR SIGNALS VIEWERS WILL ALMOST CERTAINLY NEED A SPECIAL SETTOP BOX TO DECODE THE SIGNALS YOU'RE LOOKING AT MAKING THE SERVICE UNAVAILABLE TO PEOPLE WHO DON'T SUBSCRIBE HE SAID SEPARATELY WITNESSES FROM CABLE AND TECHNOLOGY CONCERNS TOLD A HOUSE SUBCOMMITTEE THAT THE CONVERTER BOX WILL BE A MAIN LINK TO THE FUTURE INFORMATION SUPERHIGHWAY AND SHOULD BE REQUIRED TO HANDLE A LARGE VARIETY OF SOURCES THEY URGED MEMBERS OF THE HOUSE PANEL TO AVOID MANDATING SPECIFIC TECHNOLOGICAL STANDARDS AND TO PROHIBIT TELEPHONE CABLE SATELLITE OR BROADCAST COMPANIES FROM REQUIRING CONSUMERS TO BUY OR RENT SETTOP BOXES THAT CARRY ONLY INFORMATION FROM LIMITED SOURCES IT WILL BE LIKE DRIVING DOWN THE INFORMATION HIGHWAY WITH FIVE STEERING WHEELS AND NO MAP SAID ANDREW LIPPMAN ASSOCIATE DIRECTOR OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S MEDIA LAB AS ENVISIONED BY VICE PRESIDENT AL GORE AND OTHERS THE NATIONAL INFORMATION INFRASTRUCTURE WOULD BE A NETWORK OF NETWORKS INCLUDING TELEPHONE CABLE SATELLITE AND BROADCASTING AND OTHER WIRELESS LINKS AS PART OF THAT THE CONVERTERBOX BUSINESS COULD GO THE WAY OF THE TELEPHONE INDUSTRY SINCE AMERICAN TELEPHONE & TELEGRAPH CO LOST ITS BATTLE TO PLUG ONLY EQUIPMENT MADE BY ITS WESTERN ELECTRIC UNIT INTO THE BELL SYSTEM NETWORK THE CHOICE OF TELEPHONE EQUIPMENT HAS MUSHROOMED AND PRICES HAVE PLUNGED 9402020144 940202 ECONOMY US CRITICIZES CHINA ON HUMAN RIGHTS SETTING UP A CONFLICT ON TRADE STATUS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID CHINA'S HUMAN RIGHTS RECORD LAST YEAR FELL FAR SHORT OF INTERNATIONAL NORMS RAISING THE PROSPECT THAT BEIJING COULD LOSE ITS FAVORABLE TRADE STATUS WITH THE US IN THE ANNUAL HUMAN RIGHTS REPORT TO CONGRESS THE ADMINISTRATION SAID IT WAS IMPOSSIBLE TO DOCUMENT HOW MANY POLITICAL PRISONERS WERE BEING DETAINED BY BEIJING BUT ESTIMATED IT COULD BE IN THE THOUSANDS IT ALSO FOUND THAT PHYSICAL ABUSE INCLUDING TORTURE BY POLICE AND PRISON OFFICIALS PERSISTED AND CONCLUDED THAT OVERALL POLITICAL AND CIVIL RIGHTS REMAINED SEVERELY RESTRICTED THE REPORT ALSO CRITICIZED THE HUMAN RIGHTS RECORDS OF SEVERAL US ALLIES INCLUDING EGYPT ISRAEL SAUDI ARABIA AND TURKEY AS WELL AS THE SOUTHERN NEIGHBOR OF THE US MEXICO OLD COLD WAR ENEMIES INCLUDING MANY STATES OF THE FORMER SOVIET UNION ALSO WERE CRITICIZED FOR HUMAN RIGHTS ABUSES AS WAS VIETNAM BUT THE CHAPTER ON CHINA LOOMED LARGE BECAUSE OF THE POSSIBLE TRADE CONSEQUENCES TIMOTHY WIRTH THE STATE DEPARTMENT'S COUNSELOR SAID THAT LIMITED PROGRESS WAS MADE IN CHINA OVER THE PAST YEAR BUT HE SAID THAT MUCH MORE SIGNIFICANT PROGRESS IS GOING TO BE NECESSARY BEFORE PRESIDENT CLINTON WOULD BE ABLE TO RENEW CHINA'S MOST FAVORED NATION TRADING STATUS IN JUNE LAST YEAR MR CLINTON RENEWED THE TRADE STATUS BUT TOLD BEIJING THAT IT MUST MAKE OVERALL SIGNIFICANT PROGRESS IN HUMAN RIGHTS IN ORDER TO KEEP THE DESIGNATION WHICH GIVES CHINA THE SAME TARIFF TREATMENT AS MOST OTHER US TRADING PARTNERS CHINA'S BAD MARKS IN THE HUMAN RIGHTS REPORT HAD BEEN EXPECTED BUT THE ANNUAL REPORT'S PUBLICATION YESTERDAY PUTS BEIJING AND WASHINGTON ON WHAT COULD BE A COLLISION COURSE MR CLINTON WHO CRITICIZED FORMER PRESIDENT BUSH AS BEING SOFT ON BEIJING IS INSISTING THAT CHINA IMPROVE ITS HUMANRIGHTS BEHAVIOR BUT DOESN'T WANT TO PENALIZE US BUSINESS BY CUTTING OFF TRADE WITH THE WORLD'S FASTESTGROWING ECONOMY OVERALL JOHN SHATTUCK THE STATE DEPARTMENT'S ASSISTANT SECRETARY FOR HUMAN RIGHTS SAID THAT WITH THE END OF THE IDEOLOGICAL STRUGGLE OF THE COLD WAR MANY HUMAN RIGHTS ABUSES NOW STEM FROM ETHNIC RACIAL AND RELIGIOUS CONFLICTS IN PLACES SUCH AS BOSNIA ANGOLA AND PARTS OF THE FORMER SOVIET UNION AT THE SAME TIME HE SAID DRAMATIC FIRST STEPS TOWARD RECONCILIATION IN SUCH PLACES AS THE MIDDLE EAST CAMBODIA SOUTH AFRICA AND EL SALVADOR HAVE TENDED TO REDUCE HUMAN RIGHTS ABUSES THE REPORT SAID THAT RUSSIA CONTINUED ITS PROGRESS ON HUMAN RIGHTS LAST YEAR BUT ADDED THAT MOSCOW'S RECORD STILL WAS UNEVEN AND SOME SERIOUS PROBLEMS REMAIN THE REPORT CITED SUCH PROBLEMS AS THE EXPULSION OF PEOPLE FROM CENTRAL ASIA AND THE CAUCASUS REGION OF THE FORMER SOVIET UNION WHICH OCCURRED WHEN PRESIDENT BORIS YELTSIN DECLARED A STATE OF EMERGENCY IN THE CAPITAL IN OCTOBER THE REPORT SAID THAT VIETNAM CONTINUED TO LIMIT SEVERELY BASIC POLITICAL AND CIVIL FREEDOMS BUT THAT HANOI LAST YEAR EASED RESTRICTIONS ON TRAVEL AND THAT ITS CITIZENS' CONTACTS WITH FOREIGNERS IS MORE WIDELY ACCEPTED PRESIDENT CLINTON IS EXPECTED TO DECIDE SOON WHETHER TO LIFT THE TWODECADEOLD US TRADE EMBARGO OF VIETNAM HOWEVER HUMAN RIGHTS WON'T BE A MAJOR CONSIDERATION IN THAT DECISION RATHER MR CLINTON MUST DECIDE WHETHER VIETNAM IS COOPERATING SUFFICIENTLY WITH EFFORTS TO RESOLVE CASES OF UNACCOUNTEDFOR US SOLDIERS FROM THE VIETNAM WAR IN THE ISRAELIOCCUPIED WEST BANK AND GAZA STRIP THE REPORT SAID THERE ARE CREDIBLE REPORTS THAT AMID THE SURGE IN VIOLENCE FOLLOWING THE ISRAELIPALESTINIAN PEACE ACCORD SIGNED LAST SEPTEMBER ISRAELI SOLDIERS MISTREATED PALESTINIAN PRISONERS THE REPORT SAID THIS MISTREATMENT INCLUDED TORTURE ADMINISTRATIVE DETENTION AND DESTRUCTION OF HOUSES OF SUSPECTED TERRORISTS THE REPORT ALSO SAID THAT IN MEXICO DESPITE EFFORTS BY THE GOVERNMENT THE SECURITY FORCES IN PARTICULAR THE POLICE CONTINUED TO COMMIT SERIOUS HUMAN RIGHTS VIOLATIONS IN 1993 THE REPORT ALSO NOTED THE RECENT ARMED UPRISING IN THE MEXICAN STATE OF CHIAPAS STATING THAT INDIGENOUS GROUPS THERE REMAIN LARGELY OUTSIDE THE COUNTRY'S POLITICAL AND ECONOMIC MAINSTREAM BUT THE REPORT DIDN'T INCLUDE MUCH DETAIL ON THE UPRISING WHICH OCCURRED IN JANUARY AND WILL BE PART OF NEXT YEAR'S REPORT 9402020143 940202 SMALL STOCK FOCUS PROFITTAKERS SPOOKED BY HIGHER RATES PUSH PRICES LOWER AFTER FOURDAY RALLY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PROFITTAKERS SPURRED ON BY HIGHER INTEREST RATES JUMPED IN TO REVERSE FOUR STRAIGHT SESSIONS OF SMALLCOMPANY STOCK GAINS THIS WAS JUST A LITTLE SELLOFF IN WHAT'S BEEN A VERY POWERFUL MARKET SAID RICHARD HOLDEN MANAGER OF NASDAQ TRADING AT ALEX BROWN & SONS INC PRETTY MUCH EVERYTHING WAS FOR SALE TODAY BUT THERE HASN'T BEEN ANY KIND OF PANIC SELLING THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DIDN'T FARE TOO BADLY AND MANAGED TO RECOUP SOME OF ITS EARLIER LOSSES THE BAROMETER FINISHED DOWN JUST 002 OR 001 AT 26650 AFTER BEING DOWN NEARLY A POINT DURING THE SESSION THE RUSSELL HAD SET CLOSING HIGHS IN THE PREVIOUS TWO SESSIONS THE NASDAQ COMPOSITE INDEX DROPPED 323 OR 040 TO 79724 WELL ABOVE ITS LOW FOR THE DAY WHEN IT HAD SLUMPED ABOUT 5 1/2 POINTS WEAK TECHNOLOGY AND HEALTHCARE ISSUES CAUSED MOST OF THE DAMAGE NASDAQ DECLINERS LED ADVANCERS 1666 TO 1459 ON NASDAQ NATIONAL MARKET VOLUME OF 285624250 SHARES AND TOTAL VOLUME OF 339754000 SHARES MONDAY NATIONAL MARKET VOLUME WAS 278502500 SHARES AND TOTAL TURNOVER HIT 329921800 SOME TECHNOLOGY STOCKS WEAKENED JETFORM A CANADIAN SOFTWARE FIRM LOST 1 TO 10 1/4 CHIPS & TECHNOLOGIES A SAN JOSE CALIF INTEGRATED CIRCUIT DESIGNER GAVE UP 1/2 TO 5 1/4 AND TRINZIC A PALO ALTO CALIF SOFTWARE COMPANY WAS OFF 1/2 AT 5 3/8 BUT ALDUS SEATTLE WAS THE SECTOR'S BIG DECLINER TUMBLING 4 TO 22 1/4 ON DISAPPOINTING FOURTHQUARTER EARNINGS OLICOM A/S DROPPED 1 5/8 TO 9 3/8 THE DANISH SOFTWARE AND HARDWARE PRODUCTS CONCERN SAID FOURTHQUARTER EARNINGS FELL TO 17 CENTS A SHARE FROM 23 CENTS IN THE YEAREARLIER PERIOD IN THE HEALTHCARE GROUP IMAGEAMERICA A BRENTWOOD TENN MEDICAL DIAGNOSTIC IMAGING SERVICES COMPANY GAVE UP 1/2 TO 3 1/4 ENZO BIOCHEM A FARMINGDALE NY HEALTHCARE PRODUCTS FIRM DIPPED 3/4 TO 18 3/8 ON THE AMERICAN STOCK EXCHANGE AND MEDCO RESEARCH A LOS ANGELES CARDIOVASCULAR DRUG COMPANY LOST 1/2 TO 14 1/2 ALSO ON THE AMEX INTERESTRATESENSITIVE STOCKS WHICH HAD HELD UP WELL IN RECENT SESSIONS SLIPPED AS BONDS FELL US FACILITIES A COSTA MESA CALIF INSURANCE COMPANY RETREATED 1 TO 10 1/2 VICTORIA FINANCIAL CLEVELAND DECLINED 3/4 TO 8 1/2 AND SILICON VALLEY BANCSHARES SAN JOSE CALIF SLIPPED 3/4 TO 9 1/4 THREE NEW ISSUES WERE IN THE SPOTLIGHT MAPINFO TROY NY JUMPED TO 24 1/4 FROM ITS OFFERING PRICE OF 19 THE COMPANY DEVELOPS DESKTOP MAPPING SOFTWARE MAPPING APPLICATION TOOLS AND GEOGRAPHIC AND DEMOGRAPHIC INFORMATION PRODUCTS DIGITAL LINK CLIMBED TO 17 7/8 FROM ITS OFFERING PRICE OF 14 THE SUNNYVALE CALIF CONCERN MAKES HIGHSPEED DIGITAL TELECOMMUNICATIONS PRODUCTS ALSO PARCPLACE SYSTEMS SURGED TO 21 1/2 FROM ITS INITIAL PRICE OF 15 1/2 THE SUNNYVALE CALIF COMPANY DEVELOPS TOOLS FOR COMPUTER SOFTWARE DESIGN APPLICATIONS KATHY SMITH AN ANALYST AT RENAISSANCE CAPITAL GREENWICH CONN SAID MAPINFO DIGITAL LINK AND PARCPLACE WERE THREE OF THE QUALITY DEALS ON THE CALENDAR SHE ADDED THAT BECAUSE THEY'RE NOT ENORMOUS IN SIZE THEIR PRICES GOT PUSHED UP A LOT BY ALL THE INVESTORS WHO WANTED TO GET IN ON THE DEALS ELSEWHERE HEARTLAND EXPRESS CORALVILLE IOWA ADDED 1 1/2 TO 32 1/4 THE TRANSPORT COMPANY AND MUNSON TRANSPORTATION INC AGREED TO MERGE MUNSON WILL BECOME A WHOLLY OWNED HEARTLAND SUBSIDIARY RIGHT MANAGEMENT CONSULTANTS ROSE 2 1/2 POINTS TO 20 THE PHILADELPHIA PROVIDER OF CAREER MANAGEMENT AND HUMAN RESOURCE CONSULTING SERVICES SAID FOURTHQUARTER NET INCOME WAS 45 CENTS A SHARE COMPARED WITH OPERATING EARNINGS OF 22 CENTS A YEAR EARLIER CATHERINES STORES MEMPHIS TENN SAGGED 1 1/4 TO 14 1/4 THE RETAIL STORE OPERATOR SAID FOURTHQUARTER EARNINGS ARE EXPECTED TO FALL BELOW THE EIGHT CENTS A SHARE POSTED A YEAR EARLIER IT CITED JANUARY STORE SALES THAT WILL BE LESS THAN LAST YEAR AND SIGNIFICANTLY BELOW PLAN EASTERN CO GAINED 1 3/4 TO 14 1/4 ON THE AMEX THE NAUGATUCK CONN SECURITY PRODUCTS FIRM SAID FOURTHQUARTER EARNINGS ROSE TO 48 CENTS A SHARE FROM 28 CENTS A YEAR EARLIER AMERICA ONLINE SKIDDED 1 3/4 TO 62 FLOODED WITH NEW SUBSCRIBERS THE VIENNA VA COMPANY HAS BEEN FORCED TO RESTRICT ACCESS TO ITS COMPUTERBASED INFORMATION SERVICES NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 126 WHILE 22 HIT NEW LOWS 9402020142 940202 HEARD ON THE STREET SALOMON'S QUIET MOOD OF HIGHTECH TRADING WILL BOOST ITS STOCK PRICE SOME ANALYSTS SAY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THERE'S A NEW QUIET FORM OF COMPUTERAIDED TRADING FOR CUSTOMERS GOING ON INSIDE ONCESWASHBUCKLING SALOMON INC AND SOME ANALYSTS THINK THE FIRM'S STOCK WILL GET A BOOST FROM IT IN THE PAST INVESTORS GREW SEASICK AS THE SHARES SOARED AND PLUNGED ALONG WITH THE VARIOUS HIGHRISK BETS IN STOCK AND BOND MARKETS TAKEN BY THE COMPANY'S SALOMON BROTHERS SECURITIES BUSINESS BUT WHAT'S ENCOURAGING THE BULLS TODAY IS A NEW AND MORECIRCUMSPECT MOOD WITHIN SALOMON WHICH SOME THINK MAKES THE STOCK UNDULY CHEAP AT ITS CURRENT MULTIPLE OF ABOUT 7 1/2 TIMES TRAILING EARNINGS WANTON RISK IS OUT SALOMON SAYS STABILITY IS IN FOR EVIDENCE TAKE A LOOK AT SALOMON'S HIGHTECH TRADING ARM KNOWN AS THE QUANTITATIVE TRADING GROUP IT EXECUTES OFFEXCHANGE COMPUTERASSISTED PROGRAM TRADES FOR BIG CUSTOMERS SUCH AS MUTUALFUND PORTFOLIO MANAGERS AT LOWERTHANUSUAL COMMISSION RATES A VISIT TO THE 40THFLOOR OPERATION CONFIRMS IT'S A FAR CRY FROM BRASH INHOUSE TRADING REALM FOR WHICH SALOMON WAS KNOWN IN THE 1980S IN A CORNER MILLIONS OF DOLLARS IN STOCKS ARE TRADED WITH A TOUCH OF A BUTTON BUT NOT BECAUSE SOME TRADER IS GAMBLING ON THE STOCKS' PROSPECTS THE QUANTITATIVETRADING UNIT IS EXCHANGING LONG LISTS OF STOCKS FROM SALOMON'S INVENTORY DIRECTLY WITH CUSTOMERS AT PREVIOUSLY AGREEDUPON PRICES THE BENEFIT FOR CUSTOMERS LOWER COMMISSION RATES THAN CONVENTIONAL TRADING AND NO FUSS SINCE THE TRADES DON'T SHOW UP IN THE PUBLIC MARKETS WE WOULD LIKE TO DRIVE THE COST OF TRADING DOWN AS MUCH AS POSSIBLE SAYS NEIL YELSEY A 35YEAROLD FORMER STOCK ANALYST WITH AN ENGINEERING DEGREE WHO HEADS THE TRADING OPERATION HIS BOSS JONATHAN SANDELMAN SAYS THE UNIT'S IMPROVED ANALYTICS HOLD DOWN BOTH SALOMON'S RISKS AND CUSTOMERS' COSTS SALOMON IS ALSO ACTIVE IN CONVENTIONAL PROGRAM TRADING ON THE NEW YORK STOCK EXCHANGE OF COURSE THIS ISN'T A TRENDY TIME TO BE POSITIVE ON SALOMON OR ANY OTHER BROKERAGEINDUSTRY STOCK THOUGH BROKERAGE STOCKS JUMPED 27 IN 1993 MANY INVESTORS ARE FLEEING THE SECTOR FEARING THE END IS NIGH FOR THE BULL MARKET THIS WEEK OPPENHEIMER & CO ISSUED A BUY RATING ON SALOMON CITING THE PROSPECT FOR MORESTABLE EARNINGS AS ITS BUSINESS MIX CHANGES THEY'RE DEFINITELY BUILDING UP THE CUSTOMERDRIVEN STUFF OPPENHEIMER ANALYST STEVEN EISMAN SAID YESTERDAY HE SET A PRICE TARGET OF 60 TO 65 FOR THE STOCK OVER THE NEXT 12 TO 18 MONTHS HE CALLED SALOMON'S CURRENT VALUATION INCLUDING A PRICE ONLY 13 TIMES BOOK VALUE EXTREMELY COMPELLING MR EISMAN ALSO ISSUED BUYS ON MERRILL LYNCH NOW AT 43 7/8 AND MORGAN STANLEY NOW AT 79 1/2 HE CITED THOSE FIRMS' INROADS IN EUROPE AND EMERGING MARKETS PLUS BEEFEDUP MANAGEMENT CONTROLS SALOMON FOR ITS PART IS ALSO MOVING TO BUILD UP ITS MANAGEMENT AND RISK SYSTEMS WITHIN MR YELSEY'S UNIT SALOMON TRIES TO KEEP SUCH AN ACCURATE TRACK OF ITS STOCK INVENTORY THAT IT CAN COMPLETE MULTISTOCK PROGRAM TRADES DIRECTLY WITH CUSTOMERS AT LOW COST TO BOTH SIDES CUSTOMERS USE SALOMONPROVIDED SOFTWARE TO SEE THE PRECISE COMMISSION RATES THEY WILL PAY TO TRADE ANY OF THE 400 OR MORE STOCKS IN THE QUANTITATIVE GROUP'S INVENTORY A CUSTOMER MIGHT SCAN THE COMMISSION CHARGES FOR EACH OF SAY 100 STOCKS IN A PROGRAM PACKAGE AND CHOOSE TO ELIMINATE A FEW WITH HIGH COMMISSIONS FOR SALOMON IT IS ALL A MORESTABLE GAME THAN GAMBLING ON INTEREST RATES THIS IS A BUSINESS SAYS A SALOMON SPOKESMAN WHERE OUR BALANCE SHEET IS USED FOR THE CUSTOMER YEAR ENDED DEC 31 1993 FOURTH QUARTER DEC 31 1993 9402020141 940202 WHO'S NEWS GEORGIA GULF CORP GEORGIA GULF CORP ATLANTA DENNIS M CHORBA 53 YEARS OLD VICE PRESIDENT OF ADMINISTRATION WAS ELECTED A DIRECTOR OF THIS CHEMICAL COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS 9402020140 940202 LETTERS TO THE EDITOR DC JANITORS NONUNION YOUR DEC 14 LABOR LETTER ABOUT OFFICE BUILDING JANITORS IN WASHINGTON STATES THAT THE SERVICE EMPLOYEES UNION SAYS THE NATION'S CAPITAL IS THE FIRST MAJOR CITY TO GO UNION FOR JANITORS SINCE BEFORE WORLD WAR II WASHINGTON DC IS NOT A UNION CITY AND NEVER WILL BE FOR JANITORS AS ONE OF THE LARGEST JANITORIAL COMPANIES IN WASHINGTON WE CAN FIRMLY STATE THAT THE FREEENTERPRISE SYSTEM IS ALIVE AND WELL IN FACT MORE THAN 80 OF THE NONGOVERNMENT BUILDINGS DO NOT HAVE ANY UNION CONTRACTS A FIGURE UNCHANGED IN THE PAST 10 YEARS 9402020139 940202 TREASURY TO PAY DOWN SOME DEBT WITH SALE OF 252 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 108 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2627 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS CUSIP 912794K52 MATURING MAY 12 1994 AND 26WEEK BILLS CUSIP 912794M76 MATURING AUG 11 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST THE BILLS ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 9402020138 940202 ECONOMY US IS MADE TO ALTER PLAN FOR COMPUTERS ITS TRADING PARTNERS FORCE SCALING BACK OF PROPOSAL TO EASE EXPORT CURBS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US WAS FORCED BY ITS MAJOR TRADING PARTNERS TO SCALE BACK A PLAN TO LIBERALIZE EXPORT CONTROLS ON COMPUTERS CLINTON ADMINISTRATION OFFICIALS SAID MEMBERS OF THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS REJECTED A US PROPOSAL THAT WOULD HAVE EASED EXPORT RESTRICTIONS ON COMPUTERS OPERATING UP TO 500 MTOPS OR MILLION THEORETICAL OPERATIONS PER SECOND AN INDICATOR THAT MEASURES THE SPEED OF A COMPUTER THE CONTROLS WHICH REQUIRE GOVERNMENT APPROVAL OF CERTAIN EXPORTS APPLY TO COMPUTER SALES TO COCOMPROSCRIBED COUNTRIES INCLUDING THE FORMER SOVIET UNION OTHER FORMER COMMUNIST COUNTRIES AND CHINA THE OFFICIALS SAID COCOM COUNTRIES WHICH INCLUDE JAPAN AUSTRALIA AND ALL MEMBERS OF THE NORTH ATLANTIC TREATY ORGANIZATION EXCEPT ICELAND HAVE ACCEPTED EASING RESTRICTIONS ON COMPUTERS ONLY UP TO 260 MTOPS LATE LAST YEAR COCOM MEMBERS AGREED TO RAISE THE LIMIT TO 67 MTOPS FROM 125 THE 260MTOP LEVEL SHOULD INCLUDE MOST WORKSTATIONS ON THE MARKET TODAY BUT US COMPUTER MAKERS HAVE EXPRESSED CONCERN THAT IT WOULDN'T COVER PRODUCTS THAT WILL BE MANUFACTURED OVER THE NEXT COUPLE OF YEARS WE SETTLED ON THAT BECAUSE THAT IS AS HIGH AS WE COULD GET AS A CONSENSUS A US OFFICIAL SAID BUT WE HAVEN'T GIVEN UP ON 500 IT WAS VIEWED BY US AS AN INTERIM MEASURE ANOTHER US OFFICIAL SAID THE ADMINISTRATION IS PLANNING TO ISSUE DETAILS OF THE NEW ARRANGEMENT SOON PROBABLY IN THE COMING DAYS THE US OFFICIALS ALSO SAID JAPAN HAS REFUSED TO ACCEPT A US PROPOSAL DEFINING SUPERCOMPUTERS AS PRODUCTS OPERATING AT MORE THAN 2000 MTOPS IN RECENT NEGOTIATIONS THE JAPANESE DREW THE LINE AT COMPUTERS OPERATING AT MORE THAN 1500 MTOPS THAT WOULD REPRESENT A HUGE BOOST FROM THE CURRENT DEFINITION OF ANY COMPUTER OPERATING OVER 194 MTOPS BUT IT TOO FALLS SHORT OF US CORPORATE DEMANDS PRODUCTS DEFINED AS SUPERCOMPUTERS ARE SUBJECT TO TOUGHER EXPORT CONTROLS THE CLINTON ADMINISTRATION LAID OUT THE 500MTOP LEVEL AS ONE OF ITS GOALS LAST OCTOBER IN A MUCHBALLYHOOED REPORT OF ITS INTERAGENCY TRADE PROMOTION COORDINATION COMMITTEE HEADED BY COMMERCE SECRETARY RON BROWN PAUL FREEDENBERG A LAWYER FOR THE COMPUTER AND BUSINESS EQUIPMENT MANUFACTURERS ASSOCIATION AND A COMMERCE UNDERSECRETARY IN THE REAGAN ADMINISTRATION SAID HE UNDERSTANDS JAPAN REPRESENTED THE MAIN OBSTACLE TO RAISING THE LIMIT TO 500 MTOPS THEY ARE ESSENTIALLY BEHIND US IN TECHNOLOGY AND THEY ARE SUSPICIOUS THE US IS TRYING TO GET A COMPETITIVE ADVANTAGE BY EASING EXPORT RESTRICTIONS HE SAID RICHARD BARTH ASSISTANT DIRECTOR OF INTERNATIONAL TRADE RELATIONS AND GOVERNMENT RELATIONS AT MOTOROLA INC A SCHAUMBURG ILLBASED ELECTRONICS COMPANY SAID THE COMPUTER INDUSTRY IS LIKELY TO BE DISAPPOINTED THAT THE ADMINISTRATION COULDN'T DELIVER ON ITS PROPOSAL TO DECONTROL TO 500 MR BARTH HEADED A PROJECT BY THE COUNCIL ON COMPETITIVENESS A WASHINGTON BUSINESSBACKED GROUP THAT LAYS OUT THE COST OF UNILATERAL EXPORT RESTRICTIONS THE REPORT IS EXPECTED TO BE RELEASED TOMORROW ALTHOUGH COCOM IS TO BE DISBANDED NEXT MONTH THE LIMITS AGREED UPON NOW ARE CONSIDERED IMPORTANT BECAUSE THEY WILL BASICALLY DEFINE COMPUTER EXPORT CONTROLS UNTIL A NEW SYSTEM IS CREATED TO SET RESTRICTIONS US NEGOTIATORS ARE STILL DISCUSSING VARIOUS PROPOSALS WITH OTHER COCOM MEMBERS THE US OFFICIALS SAID THEY ARE HOPEFUL THEY CAN REACH THE 500MTOP LEVEL EVEN IN A POSTCOCOM SYSTEM WHICH IS EXPECTED TO SHIFT ITS FOCUS TO RESTRICT EXPORTS TO NATIONS SUCH AS IRAQ IRAN LIBYA AND NORTH KOREA RATHER THAN THE FORMER SOVIET AND COMMUNIST COUNTRIES THE ADMINISTRATION WAS SUPPOSED TO PRESENT PROPOSED LEGISLATION COVERING EXPORT CONTROL REFORM TODAY AT A CAPITOL HILL HEARING BUT THAT HEARING WAS POSTPONED UNTIL NEXT WEEK AS THE ADMINISTRATION STILL TRIES TO SETTLE ON ITS PLAN THE ADMINISTRATION IS UNDER PRESSURE TO LIBERALIZE EXPORT CONTROLS BY CORPORATE INTERESTS WHICH ARGUE THE RESTRICTIONS ARE COSTLY TO THE US ECONOMY 9402020137 940202 TEXAS JOURNAL A ROSE IS RED VIOLET BLUE SORRY LOVE I PLAN TO SUE BY SCOTT MCCARTNEY DALLAS WHAT'S LOVE GOT TO DO WITH IT ANYWAY FOR LAWYERS IN DALLAS YOU MIGHT HAVE TO WONDER LAST WEEK THE DALLAS BAR ASSOCIATION ISSUED A NEWS RELEASE PROMOTING ITS LEGALLINE SERVICE WHICH ALLOWS CALLERS TO TALK FREE OF CHARGE TO LAWYERS FOR GENERIC LEGAL ASSISTANCE THE FEBRUARY LEGALLINE SPECIAL ACCORDING TO THE BAR ASSOCIATION WILL BE DIVORCE CUSTODY AND FAMILYLAW TOPICS IN CELEBRATION OF VALENTINE'S DAY THIS IS NO LAWYER JOKE THE BAR ASSOCIATION SAYS BROKEN HEARTS ARE NO LAUGHING MATTER FAMILY LAW IS THE NO 1 AREA OF THE LAW FOR QUESTIONS AND THIS WAS A WAY TO HIGHLIGHT FAMILY LAW SAYS DAWN CARBONE SPOKESWOMAN FOR ALL THE ROMANTICS AT THE BAR ASSOCIATION TRUTHFULLY WE'RE JUST TRYING TO MAKE IT MORE VISIBLE THE GROUP STARTED ITS LEGALLINE LAST JUNE AND RECEIVES ABOUT 100 CALLS A MONTH IT HAS OFFERED HELP WITH LABOR LAW FOR LABOR DAY AND CONSUMER LAW FOR CHRISTMAS WE'RE JUST TRYING TO COME UP WITH NEW WAYS TO KEEP IT BEFORE THE PUBLIC MS CARBONE SAYS 9402020136 940202 NEW YORK'S BANKING LAW IS EXTENDED PERMANENTLY ALBANY NY FIVE MINUTES BEFORE ITS EXPIRATION NEW YORK'S BANKING DEREGULATION LAW WHICH AMONG OTHER THINGS KEPT CAPS OFF MOST LOAN AND CREDITCARD RATES WAS EXTENDED PERMANENTLY THE STATE'S 13YEAROLD LAW ALLOWING BANKS TO SET RATES WAS SCHEDULED TO EXPIRE AT 1201 AM EST YESTERDAY LAWMAKERS WORKED INTO THE NIGHT TO RESOLVE SEVERAL STICKING POINTS IN THE NEW WIDERANGING BANKING BILL INCLUDING HOW TO ALLOCATE MONEY FOR SMALLBUSINESS DEVELOPMENT ONCE PASSED GOV MARIO CUOMO SIGNED THE BILL ON THE ASSEMBLY FLOOR TO MAKE SURE THE LAW DIDN'T LAPSE IN ADDITION TO ALLOWING BANKS TO SET LOANS RATES AND CREATING NEW SMALLBUSINESS INVESTMENT PROGRAMS THE LAW PROVIDES FOR NEW AUTOLEASETERM DISCLOSURE REQUIREMENTS A CONSUMER AUTOLEASING GRIEVANCE PROCEDURE THE CREATION OF A CONSUMER 800 NUMBER FOR INFORMATION ON CREDITCARD RATES AND TERMS AND A REQUIREMENT THAT BANKS SET UP LOWCOST CHECKING ACCOUNTS FOR POOR PEOPLE 9402020135 940202 KODAK REPORTS NET SLIPPED 33 IN 4TH QUARTER HEALTH INFORMATION UNITS WITH COST CUTS FUELED RISE IN OPERATING PROFIT BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO'S NET INCOME DROPPED 33 IN THE FOURTH QUARTER BUT OPERATING PROFIT ROSE BECAUSE OF COSTCUTTING AND STRENGTH IN ITS HEALTH AND INFORMATIONSYSTEMS SEGMENTS THE PHOTOGRAPHY AND HEALTH CONCERN REPORTED NET INCOME OF 201 MILLION OR 61 CENTS A SHARE COMPARED WITH 299 MILLION OR 92 CENTS A SHARE A YEAR EARLIER THE PRIOR PERIOD'S RESULTS INCLUDE GAINS OF 23 CENTS A SHARE ON INVESTMENT SALES AND 15 CENTS A SHARE IN INCOME FROM DISCONTINUED OPERATIONS OF ITS CHEMICAL DIVISION SALES FROM CONTINUING OPERATIONS IN THE LATEST QUARTER WERE FLAT AT 448 BILLION THE RESULTS EXCEEDED ANALYSTS' CONSENSUS ESTIMATE OF 56 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KODAK ROSE 125 CENTS TO CLOSE AT 4425 BUT SOME ANALYSTS REMAINED CAUTIOUS THE KEY ISSUE IS THAT COST SAVINGS WERE ACHIEVED IN 1993 SAYS JACK KELLY AN ANALYST WITH GOLDMAN SACHS & CO THE REAL QUESTION IS WHY AREN'T MORE OF THOSE COST SAVINGS FLOWING TO THE BOTTOM LINE HE POINTED OUT FOR EXAMPLE THAT OVERALL COSTS OF GOODS SOLD INCREASED 6 KODAK BASED IN ROCHESTER NY SAID OPERATING PROFIT FROM ITS IMAGING INFORMATION AND HEALTH SEGMENTS ROSE 20 IN THE FOURTH QUARTER THE BOOST CAME PRIMARILY FROM A 57 EARNINGS INCREASE IN KODAK'S HEALTH DIVISION DRIVEN BY VOLUME INCREASES AND COST CONTROL SAID WILBUR J PREZZANO HEALTHGROUP PRESIDENT DESPITE POSTING ITS LOWEST QUARTERLY EARNINGS OF THE YEAR KODAK'S BELEAGUERED INFORMATIONSYSTEMS UNIT STILL EARNED 22 MILLION IN THE FOURTH QUARTER AGAINST A LOSS OF 12 MILLION THE YEAR BEFORE THE UNIT BENEFITED FROM SUBSTANTIAL EARNINGS GAIN IN COPY PRODUCTS WHICH CHIEF EXECUTIVE OFFICER GEORGE FISHER SAID WAS NOT FOR SALE EARLIER THIS MONTH ENDING MORE THAN A YEAR OF SPECULATION SOME COSTS WERE ALSO LOWER MR FISHER SAID WITH RESEARCH AND DEVELOPMENT EXPENSES DROPPING 13 IN THE QUARTER AND SALES ADMINISTRATIVE AND OTHER RELATED EXPENSES DOWN 10 MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO SAID THAT KODAK HAS MADE SOME SIGNIFICANT PROGRESS IN COST REDUCTION BUT THAT IT HAD TO SURRENDER SOME OF THE BENEFITS TO THE MARKETPLACE FOR EXAMPLE MR ELLMANN SAID THAT KODAK'S REVENUE FROM 35MM COLOR NEGATIVE FILM SALES IN THE US SLIPPED BETWEEN 2 AND 4 DESPITE AN INCREASE OF 2 TO 3 IN THE VOLUME OF FILM SOLD HE PLACED SOME BLAME FOR THE REVENUE DROP ON THE COMPANY'S FOURTHQUARTER SEASONAL PACKAGING PROMOTIONS OF ITS GOLD FILM THE HOLIDAYDISCOUNT PACKAGE WAS SUPPOSED TO BE A TRIAL FOR KODAK'S NEW ECONOMY FUNTIME FILM ANNOUNCED LAST WEEK IT'S HARD TO FEEL ANY MORE COMFORTABLE WITH FUNTIME AFTER REVIEWING RESULTS OF THIS QUARTER MR ELLMANN SAYS FOR THE YEAR KODAK REPORTED A LOSS OF 152 BILLION OR 462 A SHARE INCLUDING A CHARGE OF 217 BILLION OR 660 A SHARE FROM ACCOUNTING CHANGES TAKEN PRIMARILY IN THE FIRST QUARTER AND A 387 MILLION OR 118 A SHARE THIRDQUARTER RESTRUCTURING CHARGE RELATING TO KODAK'S PREVIOUSLY ANNOUNCED 10000 LAYOFFS SALES FOR THE YEAR FELL SLIGHTLY TO ABOUT 1636 BILLION FROM 1655 BILLION LAST YEAR KODAK POSTED NET INCOME OF 115 BILLION OR 353 A SHARE INCLUDING A 141 MILLION OR 43 CENT CHARGE AND A 152 MILLION OR 47 CENTS A SHARE BOOST FROM ACCOUNTING CHANGES 9402020134 940202 TEXAS JOURNAL ECONOMIC FOCUS BIG HOUSES BIG BUCKS CITIES VIE FOR NEW JAILS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL BEAUMONT NOT ONLY DOES THIS BLUECOLLAR CITY WELCOME PRISONS IN ITS BACK YARD IT WOULD PROBABLY PUT THEM ON THE FRONT PORCH AND IN THE PARLOR LOCAL LEADERS COULDN'T BE PROUDER OF THE BRANDNEW MAXIMUMSECURITY PRISON LOOMING IN A FORMER RICE FIELD JUST SOUTH OF HERE THANKS TO THEIR LOBBYING PLANNING ALREADY IS UNDER WAY FOR FOUR OTHER CORRECTIONS FACILITIES INCLUDING A GIANT FEDERAL COMPLEX BY 1997 BEAUMONT WILL BE THE HOMEAWAYFROMHOME FOR SOME 9000 CONVICTED CRIMINALS ONE OF THE LARGEST SUCH CONCENTRATIONS IN THE STATE IF ANYONE HAS MISGIVINGS THEY AREN'T SPEAKING UP THAT'S BECAUSE IT'S STARTING TO LOOK AS THOUGH PRISONS MAY RESURRECT AN ECONOMY THAT HAS BEEN BATTERED BY DOWNSIZING IN THE PETROCHEMICAL AND REFINING INDUSTRY THE REGION'S MAINSTAY SINCE WORLD WAR II THIS IS THE BIGGEST THING SINCE SPINDLETOP FOR US SAYS MARK STILES A POWERFUL LOCAL STATE REPRESENTATIVE AS TEXAS EMBARKS ON THE MOST AMBITIOUS PRISONEXPANSION PROJECT IN THE COUNTRY MANY COMMUNITIES AROUND THE STATE ARE HOPING FOR A GUSHER OF THEIR OWN IN CONTRAST TO THE TIME WHEN TOWNS FOUGHT TOOTH AND NAIL TO WARD OFF PRISONS NOW MANY ARE FIGHTING JUST AS HARD TO ATTRACT THEM PARTICULARLY IN RURAL AREAS SUFFERING FROM THE OIL AND GAS DOWNTURN PRISONS ARE VIEWED AS A GODSEND BRINGING CONSTRUCTION CONTRACTS RELATIVELY HIGHPAYING JOBS FOR LOWSKILLED WORKERS AND PERHAPS MOST IMPORTANT STABILITY WE DON'T HAVE TO WORRY ABOUT LAYOFFS SAYS REED SMITH ASSISTANT WARDEN AT THE NEW PRISON HERE I'VE BEEN WITH THEM 15 YEARS AND I'VE NEVER HEARD OF A LAYOFF BUT THE ECONOMIC IMPACT OF THE PRISON BOOM ISN'T NECESSARILY ALL POSITIVE SETTING ASIDE THE CAPITAL EXPENDITURES THE COST OF OPERATING THE NEW FACILITIES WILL ADD A STAGGERING 1 BILLION TO THE 199697 PRISON BUDGET LEADING MANY EXPERTS TO PREDICT A BIG TAX INCREASE AND EVEN THE TOWNS THAT WIN THE PRISON LOCATION DERBY MAY PROSPER LESS THAN THEY EXPECT SINCE STATE INMATES RAISE MOST OF THEIR OWN FOOD MAKE THEIR OWN CLOTHES AND EVEN PRODUCE THE STAINLESSSTEEL FIXTURES FOR THEIR CELLS THERE'S A LIMITED NEED FOR LOCAL PURCHASES SOME SKEPTICS ALSO WONDER WHETHER COMMUNITIES ARE GIVING AWAY TOO MUCH FOR THE SITES AWARDED BETWEEN 1987 AND 1992 TOWNS WERE GENERALLY REQUIRED TO PROVIDE FREE SEWAGE AND WATER HOOKUPS AND DONATE LARGE TRACTS OF LAND WHICH WERE THEN TAKEN OFF PROPERTYTAX ROLLS FINALLY SOME OPPONENTS CONTEND THAT PRISONS HURT DEVELOPMENT BY SCARING OFF OTHER BUSINESSES AND DRIVING DOWN PROPERTY VALUES LAST MONTH HUNDREDS OF GRAND PRAIRIE RESIDENTS TURNED OUT TO PROTEST A PROPOSAL TO PLACE A STATE JAIL THERE BUT NONE OF THIS HAS QUELLED BEAUMONT'S ENTHUSIASM FOR THE PRISONS ESPECIALLY WITH CHEMICAL AND REFINING EMPLOYMENT IN THE REGION DOWN ABOUT 9350 JOBS OR 39 BELOW ITS 1981 PEAK INDEED LOCAL HOME BUILDERS AGREED TO DONATE A 3000SQUAREFOOT HOUSE FOR THE NEW WARDEN TO USE THE CITY AND COUNTY MEANWHILE SPENT ABOUT 10 MILLION FOR LAND UTILITIES AND OTHER INFRASTRUCTURE THE RETURN ON THIS INVESTMENT ROUGHLY 350 MILLION OF NEW DETENTION FACILITIES AND AN IMMEDIATE BOOM IN CONSTRUCTIONRELATED JOBS SOME 4000 OVER THE NEXT THREE YEARS ONE EARLY BENEFICIARY WAS REP STILES WHO RUNS THE CONCRETE SUBCONTRACTOR FOR THE NEW MAXIMUMSECURITY PRISON WHICH INCIDENTALLY IS NAMED THE MARK W STILES UNIT HE POINTS OUT THAT HE WAS THE LOW BIDDER OVER THE LONG TERM THE WINNERS WILL BE THE FACILITIES' 3700 EMPLOYEES TYPICAL IS TIM LEBLANC A 38YEAROLD FORMER REFINERY EMPLOYEE AND PLUMBING CONTRACTOR WHO STRUGGLED THROUGH YEARS OF SPORADIC EMPLOYMENT BEFORE BEING HIRED AS A PRISON PLUMBING SUPERVISOR MR LEBLANC SAYS THE PAY ABOUT 1960 A MONTH IS LESS THAN HE WOULD MAKE AT HIS OLD JOBS IN THE FREE WORLD BUT FACTORING IN MEDICAL BENEFITS PERKS SUCH AS FREE HAIRCUTS FROM THE INMATES AND PAID HOLIDAYS HE FIGURES HE COMES OUT ABOUT EVEN MOSTLY HE ADDS IT'S NICE TO GO HOME AND KNOW YOU'RE GOING TO HAVE A JOB NEXT MORNING NOTE DOES NOT INCLUDE FOUR 500BED PRIVATE PRERELEASE CENTERS UNDER CONSTRUCTION OR THE ADDITION OF 13500 BEDS TO EXISTING UNITS ANOTHER NAIL IN THE COFFIN IN CASE THERE WAS ANY DOUBT ABOUT THE FUTURE OF TEXAS' CURRENT HIGHSPEED RAIL PROJECT GOV ANN RICHARDS HAS WEIGHED IN WITH A RESOUNDING NO AS REPORTED THE COMPANY WITH THE FRANCHISE TO BUILD THE 200MPH TRAIN TEXAS TGV CORP FAILED TO MAKE GOOD ON PROMISES TO RAISE 170 MILLION BY A DEC 31 DEADLINE ALTHOUGH STATE HIGHSPEEDRAIL OFFICIALS HAVE SAID THE COMPANY IS IN DEFAULT TEXAS TGV HAS YET TO CONCEDE IN A JAN 25 LETTER TO STATE SEN JIM TURNER GOV RICHARDS GAVE HER VIEW BY MISSING THE DEC 31 DEADLINE THE CORPORATION HAS DEFAULTED ON THE AGREEMENT SHE WROTE I BELIEVE THAT THE AUTHORITY SHOULD REVOKE THE FRANCHISE 9402020133 940202 TECHNOLOGY & HEALTH AMERICA ONLINE TO RATION ACCESS DUE TO BIG DEMAND BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICA ONLINE INC ITS ONLINE COMPUTER SERVICE CLOGGED BY A SHARP RISE IN NEW SUBSCRIBERS SAID IT WILL BEGIN RATIONING ACCESS TO THE SYSTEM DURING PEAK HOURS THE VIENNA VA COMPANY WHICH PROVIDES SHOPPING ELECTRONIC MAIL AND NEWS SERVICES HAS SEEN ITS STOCK PRICE RISE STRONGLY ON SURPRISING GROWTH IN ITS SUBSCRIBER BASE AFTER THE COMPANY ANNOUNCED ITS NEW RESTRICTIONS ON ACCESS YESTERDAY ITS SHARES ENDED 175 LOWER CLOSING AT 62 APIECE IN NASDAQ STOCK MARKET TRADING AMERICA ONLINE RECENTLY SAID IT HAD ADDED 70000 NEW USERS LAST MONTH ALONE PUSHING ITS TOTAL USER BASE TO 600000 FROM LESS THAN HALF THAT NUMBER A YEAR AGO SUCH GAINS HAD SENT THE COMPANY'S SHARE PRICE SOARING RISING 10 SINCE LAST THURSDAY BUT THE EXPLOSIVE GROWTH HAS APPARENTLY EXCEEDED THE COMPANY'S HARDWARE CAPABILITIES WHEN THE SYSTEM OVERLOADS CUSTOMERS END UP GETTING BUSY SIGNALS OR THEY HOOK UP TO THE NETWORK BUT CAN'T GET INSIDE TO ACCESS ITS VARIOUS SERVICES SOME AMERICA ONLINE SUBSCRIBERS HAVE BEGUN VOICING THEIR FRUSTRATION BY JOINING AN ONLINE DISCUSSION ON THE INTERNET A PUBLIC NETWORK CALLED AOL GOING DOWNHILL WHEN AN AMERICA ONLINE EMPLOYEE SENT A COMPUTER MESSAGE DEFENDING THE COMPANY ONE USER RETORTED THAT THE EMPLOYEE SHOULD GET A CLUE AND DEMANDED THAT THE COMPANY IMPROVE ACCESS AND CUSTOMER SUPPORT AMERICA ONLINE DECLINED YESTERDAY TO SPECIFY THE NUMBER OF USERS IT WILL ALLOW ONTO THE SYSTEM DURING PEAK HOURS EACH EVENING ANALYSTS ESTIMATE THAT THE SYSTEM CAN SERVE AT MOST 8000 USERS AT A TIME BUT THAT IT NEEDS TO SERVE TWICE THAT NUMBER SIMULTANEOUSLY THE CAPACITY PROBLEM ALSO HAS DELAYED THE ROLLOUT OF NEW INTERNET SERVICES THAT THE COMPANY HAD SAID WOULD START APPEARING BY LATE LAST MONTH ANALYSTS VIEW THAT AS A GOOD THING FOR THE MOMENT BECAUSE A NEW ARRAY OF INTERNET SERVICES WOULD INVITE NEW USERS TO SUBSCRIBE AND ADD TO THE COMPANY'S CURRENT OVERLOAD ALTHOUGH WALL STREET ANALYSTS REMAIN BULLISH ON THE COMPANY SOME ISSUE THE CAUTION THAT IF ACCESS PROBLEMS PERSIST THE SERVICE RISKS A BACKLASH IT ISN'T A PLEASANT THING FOR ANY SUBSCRIBER SAID RICK MARTIN ANALYST FOR CHICAGO CORP ADDING THAT THE COMPANY'S CURRENT DIFFICULTIES WOULD CAUSE IT TO LOSE SOME USERS BUT NOT CORE SUBSCRIBERS THE COMPANY SAID IT HAS PURCHASED HARDWARE AND HIRED ADDITIONAL PERSONNEL TO EXPAND THE CAPACITY OF THE NETWORK IN A LETTER TO SUBSCRIBERS THE COMPANY SAID IF THESE PROBLEMS HAVE RESULTED IN YOU FEELING YOU ARE OVERPAYING FOR THE SERVICE WE'LL MAKE AN APPROPRIATE ADJUSTMENT PROMISING POSSIBLE REFUNDS WE'RE TAKING THE PROBLEM SERIOUSLY STEVE CASE AMERICA ONLINE'S PRESIDENT SAID BUT HE ADDED IT APPEARS TO US THAT THE MAJORITY OF OUR CUSTOMERS AREN'T AFFECTED BY THIS IT REALLY HAS TO DO WITH THE PEAK USAGE PERIODS 9402020132 940202 INTERNATIONAL JAPAN'S HATA TOSSES WATER ON US TRADETALK HOPES TOKYO FOR WEEKS THE CLINTON ADMINISTRATION HAS IMPLORED JAPANESE POLITICAL LEADERS TO SAVE STALLED TRADE TALKS BY ARMTWISTING THEIR COUNTRY'S INTRANSIGENT BUREAUCRATNEGOTIATORS WASHINGTON MAY BE DISAPPOINTED NUMERICAL TARGETS ARE LIKE MANAGED TRADE AND GOVERNMENT INVOLVEMENT IN THE PRIVATE SECTOR FOREIGN MINISTER TSUTOMU HATA SAID YESTERDAY ATTACKING THE CORE US DEMAND IN THE SOCALLED FRAMEWORK NEGOTIATIONS MR HATA'S REMARKS CAME JUST HOURS BEFORE US TRADE REPRESENTATIVE MICKEY KANTOR LANDED IN TOKYO FOR EMERGENCY TALKS WITH MR HATA AND OTHER LEADERS THE TWO COUNTRIES HAVE LESS THAN TWO WEEKS TO REACH AN AGREEMENT BEFORE PRIME MINISTER MORIHIRO HOSOKAWA MEETS PRESIDENT CLINTON IN WASHINGTON SINCE TAKING OFFICE SIX MONTHS AGO MR HOSOKAWA AND HIS CABINET HAVE BEEN UNUSUALLY FRANK ABOUT THEIR NEED TO CURB BUREAUCRATIC POWER THAT HAS ENCOURAGED US OFFICIALS TO TRY TO TAKE ADVANTAGE OF THOSE APPARENT DIVISIONS BUT SO FAR AT LEAST JAPAN'S POLITICIANS HAVEN'T SHOWN ANY SIGN OF SIDING WITH THE US AGAINST JAPAN'S MANDARINS INDEED MR HATA ARGUED YESTERDAY THAT US DEMANDS SUCH AS GOVERNMENT AGREEMENTS SETTING GOALS TO INCREASE FOREIGN AUTOPARTS SALES IN JAPAN CONTRADICT MR HOSOKAWA'S PLEDGE TO REDUCE GOVERNMENT INVOLVEMENT IN THE ECONOMY DEPUTY TREASURY SECRETARY ROGER ALTMAN DISMISSED MR HATA'S REMARKS AS RHETORIC AND PUBLIC RELATIONS 9402020131 940202 LEGAL BEAT DIVORCING COUPLES WAGE WAR WITH DOMESTIC TORTS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL ESTRANGED HUSBANDS AND WIVES DON'T JUST SUE FOR DIVORCE THESE DAYS THEY SUE FOR DAMAGES AND FREQUENTLY THEY WIN UNDER A DEVELOPING LEGAL SPECIALTY KNOWN AS DOMESTIC TORTS CLAIMS OF INJURY FROM WRONGFUL CONDUCT IN A MARRIAGE ARE LEADING TO SIZABLE AWARDS FOR SUCH OFFENSES AS ASSAULT INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS FRAUD AND WIRETAPPING JUST ABOUT ANYTHING THAT CAN BE A TORT BETWEEN TWO STRANGERS IS NOW ACTIONABLE BETWEEN TWO SPOUSES SAYS EDWARD J O'DONNELL A DIVORCE SPECIALIST AT THE LIVINGSTON NJ LAW FIRM OF SKOLOFF & WOLFE YOUR IMAGINATION CAN BE YOUR GUIDE A DECADE AGO SUCH CIVIL DAMAGE CLAIMS WERE VIRTUALLY UNHEARD OF IN MATRIMONIAL LAW THE MAIN REASON WAS SPOUSAL IMMUNITY A WELLRECOGNIZED COMMONLAW DOCTRINE THAT BARS SPOUSES FROM SUING EACH OTHER UNDER IT A MAN AND WOMAN MELDED INTO A SINGLE LEGAL ENTITY UPON MARRIAGE BUT COURTS IN AT LEAST 39 STATES HAVE CHIPPED AWAY AT THE PROHIBITION AS INJURY CLAIMS BETWEEN SPOUSES HAVE INCREASED THE ADVENT OF NOFAULT DIVORCE HAS ALSO FUELED THE TREND BY ELIMINATING BLAME AS AN ISSUE IN HOW PROPERTY SHOULD BE DIVIDED NOFAULT LAWS PRECLUDE FINANCIAL REMEDIES FOR SPOUSES WHO FEEL THEY'VE BEEN WRONGED SAYS NEW YORK DIVORCE SPECIALIST HELENE BREZINSKY THE RESULT HAS BEEN AN EXPLOSION OF CIVIL DAMAGE SUITS WHEN A MANILA ARK WOMAN WAS BEATEN SO SEVERELY BY HER HUSBAND DURING THEIR PENDING DIVORCE THAT SHE NEEDED EXTENSIVE RECONSTRUCTIVE SURGERY ON HER FACE SHE SUED FOR ASSAULT BATTERY AND OUTRAGE A JURY AWARDED HER 10000 IN COMPENSATORY DAMAGES AND 350000 IN PUNITIVE DAMAGES IT IS UNDERSTANDABLE THAT A JURY MIGHT WISH TO PUNISH SUCH CONDUCT AND DETER OTHERS FROM SIMILAR ACTS THE ARKANSAS SUPREME COURT RULED LAST YEAR IN UPHOLDING THE AWARD ANOTHER EXAMPLE INVOLVED A WESTERN ILLINOIS FARMER WHO TRIED TO HIRE A HIT MAN TO KILL HIS ESTRANGED WIFE DURING THEIR DIVORCE A NOT UNCOMMON EVENT FAMILYLAW EXPERTS SAY THE WIFE SUED FOR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS AND AN ILLINOIS STATE APPEALS PANEL ALLOWED THE CASE TO PROCEED TO TRIAL IT RECENTLY SETTLED OUT OF COURT FOR A SIXFIGURE SUM IN ANOTHER CASE WHEN A PENNSYLVANIA GASSTATION OWNER CONCEALED FROM HIS ESTRANGED WIFE THAT HE WAS NEGOTIATING THE SALE OF A JOINT PROPERTY FOR 800000 WHEN THE SETTLEMENT AGREEMENT HE SIGNED VALUED THE LAND AT 45000 SHE SUED FOR FRAUD A JURY AWARDED 40000 IN PUNITIVE DAMAGES AND 200000 IN COMPENSATORY DAMAGES HALF THE SALE'S NET PROCEEDS THIS TYPE OF OUTRAGEOUS CONDUCT CAN ONLY BE PUNISHED AND DETERRED BY PUNITIVE DAMAGES THE APPEALS COURT THAT UPHELD THE AWARD DETERMINED THIS IS REALLY HOT STUFF SAYS LEE ROSEN A RALEIGH NC DIVORCE LAWYER AND CHAIRWOMAN OF THE DOMESTICVIOLENCE COMMITTEE FOR THE FAMILYLAW SECTION OF THE AMERICAN BAR ASSOCIATION SOME OF THE APPELLATE COURTS AROUND THE COUNTRY ARE BEGINNING TO RECOGNIZE THESE CREATIVE CAUSES OF ACTION OF COURSE IT HELPS WHEN THE SPOUSE BEING SUED IS WEALTHY TAKE THE CASE OF JOHN WAYNE BOBBITT THE UNEMPLOYED BAR BOUNCER AND EXMARINE WHO WAS MUTILATED LAST JUNE BY HIS WIFE LORENA BOBBITT SHE ADMITTED ATTACKING HER HUSBAND WITH A KITCHEN KNIFE BUT SAID SHE DID SO AFTER HE RAPED HER IN CRIMINAL CASES HE WAS ACQUITTED OF MARITAL ASSAULT IN NOVEMBER AND SHE WAS FOUND NOT GUILTY OF MALICIOUS WOUNDING BY REASON OF INSANITY NEITHER HAS FILED A CIVIL SUIT AGAINST THE OTHER BEFORE THEIR TRIALS BROUGHT THEM LUCRATIVE BOOK AND MOVIE OFFERS NEITHER BOBBITT OWNED MUCH WORTH SUING OVER IT TAKES THE RIGHT COMBINATION TO SUCCEED ON ONE OF THESE LAWSUITS SAYS HOUSTON DIVORCE EXPERT JOHN F NICHOLS AT THE TOP OF THE LIST HE SAYS IS A DEEP POCKET NONETHELESS LAWYERS ARE BEGINNING TO EXPLORE NEW AVENUES OF RECOVERY IN DOMESTIC TORTS PARTICULARLY UNDER HOMEOWNER INSURANCE POLICIES THESE USUALLY EXCLUDE COVERAGE FOR DAMAGES FROM INTENTIONAL ACTS BUT INTENTIONAL ACTS THAT RESULT IN UNINTENTIONAL CONSEQUENCES MIGHT BE GROUNDS FOR COVERAGE LAWYERS SAY THAT'S A VERY SERIOUS OPEN QUESTION THAT NOBODY KNOWS THE ANSWER TO YET SAYS NEW JERSEY DIVORCE SPECIALIST GARY SKOLOFF LAWYERS ALSO ARE LOOKING AT COLLECTING POSSIBLE DAMAGES FROM AN EXSPOUSE'S FUTURE EARNINGS OR PENSION PLAN NOT ALL COURTS ARE RUSHING TO EMBRACE NEW GROUNDS FOR DOMESTIC TORTS AND SOME CLAIMS PARTICULARLY EMOTIONAL DISTRESS ARE OPEN TO HIGHLY SUBJECTIVE REVIEW IN HOUSTON THREE YEARS AGO A TEXAS APPEALS COURT FOUND THAT THE WIFE OF A BANK PRESIDENT WAS ENTITLED TO DAMAGES BECAUSE HER HUSBAND HAD TEMPER TANTRUMS DOLED OUT STINGY AMOUNTS OF CASH MADE HER WEAR CHEAP CLOTHES AND BELITTLED HER IN FRONT THEIR DAUGHTER THE WIFE WAS AWARDED 362000 FOR EMOTIONAL DISTRESS AMONG OTHER CLAIMS ABOUT THE SAME TIME A KENTUCKY APPEALS COURT THREW OUT A SIMILAR CLAIM BY A WOMAN WHOSE HUSBAND ABANDONED HER SPENT THE PROCEEDS FROM THE JOINT SALE OF THEIR HOUSE KEPT THEIR CAR TRIED TO CASH IN HER RETIREMENT PLAN FORGED HER NAME TO CASH IN A JOINT TAX RETURN AND MOVED TO VIRGINIA WITH HIS GIRLFRIEND FRAUD AND ADULTERY MAY BE VERY PAINFUL AND DIFFICULT BUT DOES NOT NECESSARILY IMPLICATE THE TORT OF OUTRAGE OUTRAGEOUS CONDUCT THE APPEAL COURT RULED AND WHILE SOME JUDGES AND JURIES MAY BE GENEROUS IN AWARDING DAMAGES COLLECTING THE MONEY IS ANOTHER MATTER MOST OF THESE PEOPLE IN DIVORCE CASES IF YOU HIT THEM TOO HARD THEY JUST GO FILE BANKRUPTCY SAYS MR NICHOLS THE HOUSTON LAWYER WHO REPRESENTED THE BANK PRESIDENT'S WIFE AS SOON AS THE JUDGMENT WAS AFFIRMED ON APPEAL THE HUSBAND FILED FOR PERSONAL BANKRUPTCY WHERE THE DAMAGE AWARD IS STILL MIRED AS FOR THE BOBBITTS EITHER COULD SUE FOR CIVIL DAMAGES UNDER VIRGINIA LAW SAYS MRS BOBBITT'S LAWYER LISA M KEMLER ASSAULT FOR HIM SHE SAYS INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS FOR HER NEITHER WANTS TO LAWYERS FOR BOTH SIDES SAY UNLESS THE OTHER STRIKES FIRST IF SHE BROUGHT A SUIT AGAINST HIM SAYS MR BOBBITT'S LAWYER GREGORY L MURPHY HE WOULD DEFINITELY COUNTERSUE HER A FEDERAL APPEALS COURT HAS UPHELD A JURY FINDING THAT PAN AMERICAN WORLD AIRWAYS WAS LIABLE FOR WILLFUL MISCONDUCT STEMMING FROM THE 1988 TERRORIST BOMBING OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND MONDAY'S 21 DECISION BY A THREEJUDGE PANEL OF THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK BRINGS VICTIMS' SURVIVORS A STEP CLOSER TO THE PAYMENT OF AN ESTIMATED 500 MILLION TO 750 MILLION IN DAMAGES ABOUT 225 CASES WERE CONSOLIDATED IN A 13WEEK TRIAL IN BROOKLYN NY IN SPRING 1992 THAT PROCEEDING DECIDED ISSUES OF LIABILITY COMMON TO ALL THE CASES AND ESTABLISHED THE EXTENT OF DAMAGES FOR THREE PASSENGERS TWO LAWYERS WHOSE SURVIVORS RECEIVED ABOUT 9 MILLION EACH AND AN ELECTRICIAN AND PARTTIME MUSICIAN WHOSE FAMILY RECEIVED 17 MILLION THE APPEALS COURT SAID THE STANDARD FOR THOSE DAMAGE AWARDS WOULD APPLY IN THE REMAINING 222 CASES THE APPEALS COURT SUPPORTED THE JURY'S FINDING THAT PAN AM AND ITS SECURITY ARM ALERT MANAGEMENT SYSTEMS INC PERMITTED A BREACH OF SECURITY THAT ALLOWED EXPLOSIVES TO BE PLACED IN UNACCOMPANIED LUGGAGE BEFORE FLIGHT 103 LEFT LONDON FOR NEW YORK THE BOMBING KILLED 270 PASSENGERS CREW MEMBERS AND INDIVIDUALS ON THE GROUND UNDER AN INTERNATIONAL TREATY THE WARSAW CONVENTION AN AIRLINE'S LIABILITY FOR DAMAGES IS LIMITED TO 75000 PER PASSENGER BUT LIABILITY IS UNLIMITED IF THERE IS A FINDING OF WILLFUL MISCONDUCT AN APPELLATE COURT PREVIOUSLY RULED THAT PUNITIVE DAMAGES MAY NOT BE COLLECTED UNDER THE TREATY PAN AM WHICH HAS FILED FOR BANKRUPTCYCOURT PROTECTION AND BEEN LIQUIDATED SINCE THE CRASH WAS INSURED FOR UP TO 750 MILLION ITS INSURERS THE LARGEST OF WHICH IS A CONSORTIUM OF 15 COMPANIES KNOWN AS US AVIATION INSURANCE GROUP ARE LIABLE FOR DAMAGES STEMMING FROM THE BOMBING ACCORDING TO LEE S KREINDLER THE PLANTIFFS' LEAD ATTORNEY ATTORNEYS FOR THE AIRLINE WHICH COULD SEEK A HEARING BEFORE THE FULL APPEALS COURT OR THE US SUPREME COURT DID NOT RETURN CALLS SEEKING COMMENT LAWYERS FOR AN ATTORNEY WHO WAS FIRED FROM BAKER & MCKENZIE BECAUSE HE HAD AIDS SUED THE MAKERS OF PHILADELPHIA THE HIT MOVIE THAT RELATES A SIMILAR STORY THE LAWSUIT WAS FILED BY THE TWO NEW YORK ATTORNEYS WHO REPRESENTED FORMER BAKER & MCKENZIE ASSOCIATE GEOFFREY BOWERS ON BEHALF OF THEMSELVES MR BOWERS'S FAMILY AND HIS ESTATE THE COMPLAINT ALLEGES THAT DETAILS OF MR BOWERS'S STRUGGLE AGAINST HIS ILLNESS AND AGAINST HIS LAW FIRM WERE MISAPPROPRIATED BY TRISTAR PICTURES THE HOLLYWOOD STUDIO THAT PRODUCED PHILADELPHIA ALSO NAMED IN THE SUIT WERE A PRODUCER SCOTT RUDIN AND THE FILM'S SCREENWRITER RON NYSWANER PRODUCER ED SAXON AND DIRECTOR JONATHAN DEMME YESTERDAY A TRISTAR SPOKESMAN SAID THE COMPANY HAD NOT SEEN THE SUIT BUT DESCRIBED IT AS MERITLESS SAYING PHILADELPHIA IS A FICTIONAL STORY PHILADELPHIA STARRING TOM HANKS HAS GROSSED 366 MILLION SINCE IT OPENED DEC 22 THE STRONG RESULTS THE FILM WAS NO 1 IN THE BOX OFFICE FOR TWO CONSECUTIVE WEEKENDS HAVE SURPRISED INDUSTRY EXECUTIVES WHO HAD WORRIED THAT A SOBERING ACCOUNT OF AIDS DISCRIMINATION MIGHT PUT OFF MOVIEGOERS INSTEAD THE FILM IS DOING SO WELL THAT TRISTAR A UNIT OF SONY CORP'S SONY PICTURES ENTERTAINMENT IS EXPANDING ITS RELEASE MR BOWERS DIED AT AGE 33 IN SEPTEMBER 1987 WHILE IN THE MIDST OF A DISCRIMINATION HEARING AGAINST BAKER & MCKENZIE BEFORE THE NEW YORK STATE DIVISION OF HUMAN RIGHTS IN A RECENT RULING THE STATE FINED THE CHICAGOBASED LAW FIRM THE COUNTRY'S LARGEST 500000 THE SUIT AGAINST THE MOVIEMAKERS ALLEGES THAT MR RUDIN CONTACTED MR BOWERS'S LAWYERS ROBERT BALSAM AND DANIEL FELBER AND PROMISED THEM COMPENSATION IN RETURN FOR THE SOLE RIGHT TO MAKE A MOVIE BASED ON THEIR INFORMATION MR RUDIN WAS GIVEN UNLIMITED ACCESS TO THE LAWYERS AND FAMILY MEMBERS ACCORDING TO THE COMPLAINT BUT SIGNED OVER HIS RIGHTS TO MR SAXON WHO LANDED THE PROJECT AT TRISTAR THE ORAL CONTRACT FOR COMPENSATION HAD TO BE FULFILLED REGARDLESS OF WHETHER INFORMATION ABOUT THE BOWERS ULTIMATELY BECAME AVAILABLE FROM PUBLIC RECORDS MR BALSAM SAID RADIATION SUIT A LAWSUIT SEEKING CLASSACTION STATUS HAS BEEN FILED ON BEHALF OF 800 WOMEN WHO ALLEGEDLY WERE VICTIMS OF COLD WAR RADIATION EXPERIMENTS THE SUIT FILED IN NASHVILLE TENN BY SAN FRANCISCO PLAINTIFFS LAWYER MELVIN BELLI AND LIEFF CABRASER & HEIMANN ALLEGES THAT THE WOMEN WHO WERE PREGNANT AT THE TIME WERE EXPOSED TO RADIOACTIVE IRON AT THE VANDERBILT UNIVERSITY HOSPITAL IN THE 1940S IT IS BELIEVED TO BE THE FIRST CLASS ACTION FILED SINCE ENERGY SECRETARY HAZEL O'LEARY ACKNOWLEDGED IN DECEMBER THAT THE GOVERNMENT HAD AUTHORIZED RADIATION EXPERIMENTS EDWARD FELSENTHAL AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402020130 940202 ANADARKO PETROLEUM UNIT'S WELL HOUSTON AN ANADARKO PETROLEUM CORP UNIT SAID IT HAD A SECOND OIL DISCOVERY IN THE SAHARA DESERT IN ALGERIA THE HBN NO 1 WELL IN THE GHADAMES BASIN ON BLOCK 404 WAS DRILLED TO A TOTAL DEPTH OF 11251 FEET AND FLOWED AT A RATE OF 4900 BARRELS PER DAY OF 42 DEGREES API GRAVITY CRUDE OIL AND 63 MILLION CUBIC FEET OF GAS PER DAY THROUGH A 3/4INCH CHOKE WITH 1330 POUNDS PER SQUARE INCH OF FLOWING TUBING PRESSURE PERFORATIONS WERE BETWEEN 10621 AND 10732 FEET PARTNERS IN THE VENTURE INCLUDE ANADARKO ALGERIA CORP AND SONATRACH THE NATIONAL OIL AND GAS ENTERPRISE OF ALGERIA AND OTHERS ANADARKO PETROLEUM IS A NATURALGAS AND CRUDE OIL EXPLORATION AND PRODUCTION COMPANY SONATRACH OWNS 102 OF ANADARKO'S COMMON STOCK 9402020129 940202 WHO'S NEWS CALPERS SELECTS PRESSLER TO SUCCEED BOWMAN IN APRIL BY SARA CALLIAN AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL CALIFORNIA'S GIANT STATEEMPLOYEE PENSION SYSTEM TURNED TO THE CORPORATE WORLD FOR A NEW TOP INVESTMENT STRATEGIST NAMING SHERYL PRESSLER CHIEF INVESTMENT OFFICER EFFECTIVE APRIL 1 MS PRESSLER WHO HAS BEEN OVERSEEING 8 BILLION IN EMPLOYEEBENEFIT FUNDS OF MCDONNELL DOUGLAS CORP ST LOUIS WILL SUCCEED DEWITT BOWMAN WHO IS RETIRING FROM THE HELM OF THE 82 BILLION FUND OPERATED BY THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM DALE HANSON WILL REMAIN AS CALPERS'S CHIEF EXECUTIVE OFFICER DURING HIS FIVEYEAR TENURE MR BOWMAN TURNED CALPERS THE NATION'S LARGEST PENSION PLAN INTO A DEMANDING POLITICAL AND CORPORATE FORCE HE HELPED INCREASE FUND ASSETS BY 73 AND CHALLENGED SOME OF THE NATION'S LARGEST CORPORATIONS OVER THEIR LACKLUSTER PERFORMANCE MS PRESSLER WILL BE PAID 175000 ABOUT 5000 MORE THAN HER PREDECESSOR BUT CONSIDERABLY LESS THAN MOST MANAGERS OF LARGE PRIVATE INVESTMENT FUNDS CALPERS SAID MR BOWMAN WILL ASSIST IN THE TRANSITION TO MS PRESSLER WHO HAS 13 YEARS EXPERIENCE IN PENSION MANAGEMENT BESIDES HER SALARY MS PRESSLER WILL RECEIVE INCENTIVE COMPENSATION BASED UP HER SUCCESS IN ACHIEVING PERFORMANCE OBJECTIVES ESTABLISHED BY THE CALPERS BOARD MS PRESSLER HAS A MASTER OF BUSINESS ADMINISTRATION DEGREE FROM WASHINGTON UNIVERSITY THE CALPERS POST IS ONE OF THE MOST PRIZED IN THE WORLD OF PUBLIC PENSION PLANS MS PRESSLER WILL HELP PIONEER A NOVEL RELATIONSHIP INVESTING FUND THE PREVIOUSLY PROPOSED FUND TO BE MANAGED INTERNALLY IS THE LATEST MOVE IN CALPERS'S SHAREHOLDER ACTIVISM CURRENTLY CALPERS'S HOLDINGS IN TARGETED COMPANIES ARE DETERMINED ACCORDING TO AN INVESTMENT POLICY OF INDEXATION UNDER WHICH CALPERS BUYS SHARES IN COMPANIES TO MIMIC CERTAIN STOCK MARKET INDEXES CALPERS IS NOW TARGETING 10 COMPANIES AND ITS BOARD ANNOUNCED JAN 19 THAT IT'S GEARING UP FOR SPRING PROXY FIGHTS OVER CORPORATEGOVERNANCE ISSUES AT THREE OF THEM BOISE CASCADE CORP US SHOE CORP AND ZENITH ELECTRONICS CORP CALPERS CURRENTLY HAS ABOUT 40 OF ITS INVESTMENTS IN STOCKS AND 30 IN BONDS THE REST IS IN MORTGAGE SECURITIES REAL ESTATE AND CASH EQUIVALENTS BUT CALPERS HAS OCCASIONALLY TAKEN BOLD BETS INCLUDING ILLTIMED BETS ON REAL ESTATE AND INTERNATIONAL STOCKS SEVERAL YEARS AGO CALPERS MISSED OUT TO SOME EXTENT ON THE US BULL MARKET BECAUSE OF ITS MODEST COMMITMENT TO DOMESTIC STOCKS IN THE 1980S THE FUND'S ANNUALIZED TOTAL RETURN FOR THE FIVE YEARS THROUGH SEPT 30 1993 WAS 123 THAT IS BELOW THE MEDIAN FOR PUBLICEMPLOYEE PENSION FUNDS OF 124 ACCORDING TO WILSHIRE ASSOCIATES INC A PENSION CONSULTING FIRM IN SANTA MONICA CALIF FOR THE 12 MONTHS THROUGH SEPTEMBER HOWEVER CALPERS'S 15 RETURN BEAT THE 142 MEDIAN 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 9402020128 940202 WHO'S NEWS CHASE CORP CHASE CORP BRAINTREE MASS RONALD LEVY 55 YEARS OLD AND VICE PRESIDENT OF ARTHUR D LITTLE INC A CAMBRIDGE MASS CONSULTING CONCERN WAS ELECTED A DIRECTOR OF THIS MAKER OF PROTECTIVE TAPES AND COATINGS MR LEVY FILLS ONE OF THE VACANCIES CREATED BY THREE RECENT RETIREMENTS 9402020127 940202 TEXAS JOURNAL HEARD IN TEXAS FOUNTAINDRINK EQUIPMENT MAKER WON'T DISPENSE MUCH INFORMATION BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL YOU WOULD THINK THAT LANCER CORP HAD A ROTTEN FINANCIAL TRACK RECORD A RECENT PHONE CALL TO THE SAN ANTONIO MANUFACTURER OF BEVERAGEDISPENSING EQUIPMENT ELICITED THIS IRRITATED RESPONSE FROM THE WOMAN WHO ANSWERED WELL WHAT MAKES YOU THINK WE WANT TO TALK ABOUT THAT DON'T YOU THINK IT SHOULD BE OUR DECISION IF WE WANT OUR COMPANY IN THE NEWSPAPER OR NOT REPORTERS AREN'T THE ONLY ONES WHO GET THE COLD SHOULDER INVESTORS AND STOCK ANALYSTS SAY IT'S NEARLY IMPOSSIBLE TO SQUEEZE ANYTHING OUT OF SECRETIVE LANCER SAVE FOR THE QUARTERLY AND YEARLY FILINGS IT MUST MAKE AS A PUBLICLY TRADED ENTITY ONE MONEY MANAGER EVEN CALLED COCACOLA LANCER'S MAIN CUSTOMER IN SEARCH OF INSIGHT COKE INSTEAD OF MAKING ANY COMMENTS CALLED LANCER LANCER PHONED THE MONEY MANAGER AND WARNED HIM TO STOP SNOOPING THIS IS JUST A BIZARRE LITTLE COMPANY YOU'D THINK THEY'RE ON A SPY MISSION SAYS YET ANOTHER MONEY MANAGER WHO LIKE MOST PEOPLE CONTACTED FOR THIS ARTICLE SAYS HE DOESN'T WANT TO BE NAMED FOR FEAR OF ANGERING LANCER FUNNY THING IS LANCER DOESN'T APPEAR TO BE ROTTEN AT ALL IN FACT IT HAS BEEN RACKING UP THE KINDS OF NUMBERS THAT WOULD MAKE MOST COMPANIES CROW FOR THE LATEST NINE MONTHS LANCER HAD PROFIT OF 19 MILLION OR 81 CENTS A SHARE AN 87 INCREASE OVER THE 1 MILLION OR 44 CENTS A SHARE EARNED IN THE YEAREARLIER PERIOD EXCLUDING EXTRAORDINARY ITEMS REVENUE IS GROWING AT ABOUT A 30 ANNUAL CLIP THE STOCK PRICE HAS MORE THAN DOUBLED IN THE PAST YEAR INCLUDING A 30 JUMP SINCE DEC 31 LANCER CURRENTLY TRADES AROUND 18 THEY'VE GOT INCREDIBLE GROWTH AHEAD OF THEM JUST INCREDIBLE SAYS DALLAS MONEY MANAGER FREDERICK SHAD ROWE THE ONLY VOICE WILLING TO BE QUOTED AND WHO IN THE SAME BREATH NOTES THAT LANCER IS RUN BY JUST A BUNCH OF CRANKY GRUMPY OLD MEN THE SECRET TO LANCER'S SUCCESS AND ITS POPULARITY WITH WALL STREET DESPITE MANAGEMENT'S DEMEANOR IS ITS EXPERTISE AT THE SURPRISINGLY COMPLICATED TASK OF MAKING SODAFOUNTAIN DISPENSERS FOUNDED IN 1967 BY BROTHERS ALFRED AND GEORGE SCHROEDER WHO WERE 56 AND 53 YEARS OLD RESPECTIVELY LAST YEAR ACCORDING TO A COMPANY PROXY STATEMENT THE FAMILYRUN BUSINESS HAS WON REKNOWN FOR DESIGNING STATEOFTHEART VALVES THAT GUARANTEE JUST THE RIGHT BLEND OF SYRUP AND CARBONATED WATER TO MAKE YOUR COKE TASTE WELL LIKE COKE THIS ISN'T AS EASY AS IT SOUNDS TO ENSURE CONSISTENCY FOUNTAIN EQUIPMENT MUST TAKE INTO ACCOUNT VARIOUS FACTORS SUCH AS SYRUP THICKNESS CARBONATION HUMIDITY TEMPERATURE AND PRESSURE AS IT TURNS OUT LANCER HAS THE BEST DISPENSING VALVE IN THE WORLD REPORTS MR ROWE WHOSE FUND OWNS ABOUT 58 OF THE COMPANY'S SHARES OUTSTANDING SO SUPERB IS THIS SYSTEM AT MIXING THE PERFECT SOFT DRINK THAT COCACOLA HAS LASSOED LANCER AS ITS DISPENSER MAKER OF CHOICE AND ACCORDING TO SOME MONEY MANAGERS HAS REBUFFED RIVAL PEPSICO'S ATTEMPTS TO HORN IN UNDER AGREEMENTS WITH COCACOLA LANCER IS OBLIGATED TO MAKE ITS MANUFACTURING EXPERTISE AVAILABLE SOLELY FOR THE BENEFIT OF THE ATLANTA COLA CONCERN LANCER FIXTURES REPUTEDLY DISPENSE 95 OF COKE'S FOUNTAIN BUSINESS WORLDWIDE AS FOR THE OTHER 5 THE MAKERS OF THAT EQUIPMENT RELY ON LANCER COMPONENTS AS A RESULT COCACOLA ACCOUNTS FOR ABOUT THREEFOURTHS OF LANCER'S NET SALES WHEREVER YOU FIND A COKE COMING OUT OF A FOUNTAIN ONE FOLLOWER SAYS YOU CAN BET IT'S PROBABLY COMING OUT OF A LANCER DISPENSER THE DOWNSIDE OF SUCH DEPENDENCE OF COURSE COMES IF ANOTHER COMPANY UNCORKS A BETTER WAY OF DISPENSING THE PERFECT FOUNTAIN COKE LANCER COULD SEE ITS SALES SPIGOT SHUT OFF NO ONE FORESEES THAT THOUGH NAMELY BECAUSE COCACOLA HELPS FUND LANCER'S RESEARCH AND DEVELOPMENT THE FORECASTS OF CONTINUED GROWTH ARE BASED LARGELY ON THE RAPIDLY GROWING MARKET FOR FOUNTAINDISPENSED DRINKS OVERSEAS WHILE THE US MARKET HAS GONE FLAT FOREIGN MARKETS ARE GOING THROUGH WHAT THE US DID 10 AND 20 YEARS AGO WITH THE GROWTH OF FASTFOOD OUTLETS SAYS ROBERT NICOLSON CHIEF FINANCIAL OFFICER AT ANOKA MINNBASED IMI CORNELIUS THE WORLD'S LARGEST MAKER OF FOUNTAINDISPENSING SYSTEMS AND A UNIT OF BRITISH CONGLOMERATE IMI PLC MR NICOLSON RATES LANCER HIS EMPLOYER'S MOST RESPECTED COMPETITOR THE ONLY THING MORE DIFFICULT THAN GETTING INFORMATION FROM LANCER IS SNAPPING UP SHARES OF ITS STOCK ONLY 236 MILLION SHARES EXIST OF THAT MANAGEMENT OWNS JUST UNDER ONE MILLION SHARES WHILE LARGEBLOCK SHAREHOLDERS CONTROL ANOTHER 500000 OR SO EVEN COMPETITORS ARE SAID TO HOLD STAKES THUS THE NUMBER OF TRADABLE SHARES IS THOUGHT TO BE LESS THAN 300000 WHEN ONE MONEY MANAGER TRIED TO PICK UP 5000 SHARES RECENTLY HE COULDN'T FIND ENOUGH SELLERS BUT HIS EFFORTS CAUSED THE STOCK TO RISE 5 A SHARE IN THREE DAYS ONE GROUP EXCITED ABOUT LANCER'S PROSPECTS ALTHOUGH IT PLAYS DOWN ITS INTEREST IS DALLASBASED GHS MANAGEMENT LAST MONTH THE MONEYMANAGEMENT FIRM ANNOUNCED ONLY BECAUSE SECURITIES AND EXCHANGE COMMISSION LAWS MANDATE AS MUCH THAT IT HAD ACCUMULATED A 92 STAKE IN LANCER STOCK HOWEVER THAT'S AS FAR AS GHS MANAGEMENT WILL GO WITH PUBLIC DISCLOSURE OWNER JIM SMITH DECLINES TO DISCUSS LANCER SIMILARLY A CALL TO NEW YORK BROKER/DEALER NEUBERGER AND BERMAN WHICH OWNS MORE THAN 6 OF THE COMPANY'S SHARES GENERATES LITTLE MORE THAN WE DON'T REALLY DON'T CARE TO COMMENT ON SUCH MATTERS SOFTWARE SPECTRUM SHARES DROPPED 575 OR NEARLY 25 AFTER A PIPER JAFFRAY ANALYST DOWNGRADED THE STOCK TO REASONABLY PRICED FROM BUY THE GARLANDBASED RESELLER OF MICROCOMPUTER BUSINESS SOFTWARE LAST WEEK REPORTED THIRDQUARTER NET INCOME OF 41 CENTS A SHARE COMPARED WITH 48 CENTS A YEAR AGO PIPER JAFFRAY HAD ESTIMATED 60 CENTS FOR THE PERIOD COOPER INDUSTRIES DROPPED MORE THAN 20 AFTER THE COMPANY ANNOUNCED THAT IT ANTICIPATES A SIGNIFICANT DECLINE IN EARNINGS AS MUCH AS 25 FOR 1994 THE HOUSTONBASED DIVERSIFIED MANUFACTURING COMPANY ATTRIBUTES THE EXPECTED DECLINE TO THE RECENT DROP IN OIL PRICES WHICH IS AFFECTING THE COMPANY'S PETROLEUM & INDUSTRIAL EQUIPMENT UNIT AS A RESULT COOPER SAID OPERATING EARNINGS AT PETROLEUM & INDUSTRIAL COULD DROP BY ABOUT 75 PIZZA INN AND PILGRIM'S PRIDE GAINED 15 AND 82 RESPECTIVELY THANKS TO IMPROVED EARNINGS FOR THE SIX MONTHS ENDED DEC 26 PIZZA INN OF DALLAS REPORTED NET INCOME OF 988000 OR SEVEN CENTS A SHARE COMPARED WITH 787000 OR SIX CENTS A SHARE A YEAR AGO THE PIZZA CONCERN ALSO NOTED THAT SALES AT STORES OPEN A YEAR OR MORE INCREASED 5 IN THE FIRST SIX MONTHS PILGRIM'S PRIDE OF PITTSBURG A PRODUCER OF CHICKEN PRODUCTS REPORTED THAT FOR THE FISCAL FIRST QUARTER ENDED JAN 1 NET INCOME JUMPED TO 84 MILLION OR 31 CENTS A SHARE COMPARED WITH LAST YEAR'S 68 MILLION OR 25 CENTS A SHARE ZONAGEN WITH A TINY MARKET CAPITALIZATION OF ABOUT 37 MILLION POPPED UP MONDAY ON THE BIOWORLD FINANCIAL WATCH LIST OF LAST WEEK'S TOP GAINERS ZONAGEN THE WOODLANDSBASED BIOMEDICAL CONCERN JUMPED 21 TO 11 A SHARE THE COMPANY NAMED ROBERT S SCHENKEN A NATIONALLY RECOGNIZED FEMALE INFERTILITY AND ENDOMETRIOSIS EXPERT AS CHIEF SCIENTIFIC ADVISER FEMALE INFERTILITY 9402020126 940202 CREDIT MARKETS BOND PRICES PLUNGE ON RESIGNATION OF MULLINS FROM FED DATA SIGNALING IMPROVING ECONOMY BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK A ONETWO PUNCH COMBINATION SENT THE US TREASURY MARKET REELING YESTERDAY FIRST THERE WERE HINTS OF A STRONGER ECONOMY AND RISING INFLATION IN THE LATEST MONTHLY SURVEY BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT THEN CAME THE SURPRISE RESIGNATION OF A TOP FEDERAL RESERVE OFFICIAL THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 99 1/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 631 FROM 623 MONDAY BEFORE ANY MAJOR NEWS ITEMS REACHED THE MARKET PRICES OF SHORTTERM TREASURY SECURITIES CAME UNDER PRESSURE AS DEALERS CONSIDERED COMMENTS MADE BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ON MONDAY MR GREENSPAN SPEAKING BEFORE A CONGRESSIONAL PANEL HAD WARNED THAT AT SOME POINT THE FED MUST RAISE SHORTTERM INTEREST RATES THEN AT MIDMORNING THE ASSOCIATION REPORTED THAT ITS JANUARY INDEX OF MANUFACTURING CONDITIONS ROSE TO 577 FROM 571 IN DECEMBER THE SLIGHT RISE CONTRASTED WITH EXPECTATIONS THAT THE INDEX WOULD SLIP BECAUSE OF THE COLD WEATHER THAT GRIPPED MUCH OF THE EASTERN US LAST MONTH EVEN MORE TROUBLING TO THE BOND MARKET THE ASSOCIATION'S PRICE INDEX RAISED CONCERNS THAT THE TORRID PACE OF GROWTH IN LATE 1993 MIGHT FINALLY BE CREATING PRODUCTION BOTTLENECKS THAT IN TURN ARE FORCING BUSINESS TO RAISE PRICES THE PRICE INDEX ROSE TO 598 FROM 513 IN DECEMBER SHORTLY AFTER THE FEDERAL RESERVE ANNOUNCED THAT VICE CHAIRMAN DAVID MULLINS HAD RESIGNED TO TAKE A PRIVATESECTOR JOB HIS RESIGNATION MEANS THERE ARE NOW TWO FED VACANCIES FOR PRESIDENT CLINTON TO FILL AS FED GOV WAYNE ANGELL'S TERM ALSO EXPIRES THIS MONTH THE RESIGNATION OF MR MULLINS CAUGHT THE MARKET OFFSIDE SAID RON CONNORS MANAGER OF GOVERNMENT SECURITIES TRADING AT BEAR STEARNS AND WHAT IT DID WAS TO ADD A DEGREE OF POLITICAL UNCERTAINTY ABOUT THE FED'S COMMITMENT TO STRIKE PREEMPTIVELY AT INFLATION THAT UNCERTAINTY WAS ESPECIALLY PUNISHING FOR LONGERTERM SECURITIES AFTER HOLDING UP RELATIVELY WELL THROUGH EARLY TRADING THE 10YEAR NOTE AND 30YEAR BOND ENDED UP SUFFERING THE WORST DECLINES THE 10YEAR NOTE DROPPED MORE THAN 5/8 POINT YESTERDAY TO 100 1/32 TO YIELD 573 COMPARED WITH 564 ON MONDAY BUT ANALYSTS SAID TRADERS AND INVESTORS NEED NOT WORRY THAT THE VACANCIES CREATED BY MR MULLINS AND MR ANGELL WOULD CAST DOUBT ABOUT THE FED'S INFLATIONFIGHTING CREDENTIALS THEY OVERREACTED TO MULLINS LEAVING SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES A LOT OF PEOPLE FEEL THAT IF CLINTON NOMINATES SOMEBODY BY DEFINITION THEY ARE NOT GOING TO FIGHT INFLATION BUT WHEN THE ECONOMY IS MOVING AHEAD AND IS GROWING AT A FAIRLY STEADY RATE VIRTUALLY ALL ECONOMISTS WOULD AGREE TO RAISE RATES HE SAID INSTEAD ANALYSTS SAID THE MARKET SHOULD FOCUS MORE ON THE ECONOMIC NEWS MANY TRADERS AND INVESTORS HAVE BEEN BETTING THAT THE COLD WEATHER COUPLED WITH THE EARTHQUAKE IN SOUTHERN CALIFORNIA WOULD TEMPORARILY AFFECT ECONOMIC DATA CREATING THE APPEARANCE THAT THE ECONOMY HAD SLOWED AND DELAYING ANY FED TIGHTENING BUT YESTERDAY'S REPORT INDICATES THAT SUCH A DELAY MIGHTN'T BE AS LONG AS SOME HAD THOUGHT PEOPLE HAD BEEN SAYING THE FED IS GOING TO TIGHTEN BUT THAT IT'S GOING TO COME LATER SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG BUT THAT COMPLACENT VIEW ON THE FED HAS BEEN CALLED INTO QUESTION HE SAID ALONG WITH THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT THERE WERE ALSO SIGNS THAT CONSUMER SPENDING HELD UP BETTER THAN EXPECTED THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED CHAIN AND DEPARTMENT STORE SALES ROSE 1 IN JANUARY FROM DECEMBER FROM WHAT WE'VE SEEN SO FAR IT LOOKS LIKE ACTIVITY WAS BETTER SUSTAINED THAN WE'D THOUGHT SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT UBS SECURITIES TRADERS HAVE SEVERAL MORE SIGNIFICANT EVENTS TO CONTEND WITH THIS WEEK TODAY THE TREASURY DEPARTMENT IS SCHEDULED TO ANNOUNCE THE TERMS OF NEXT WEEK'S QUARTERLY REFUNDING AUCTIONS ECONOMISTS EXPECT THE TREASURY TO SELL 40 BILLION WORTH OF SECURITIES INCLUDING 17 BILLION OF THREEYEAR NOTES 12 BILLION OF 10YEAR NOTES AND 11 BILLION OF 30YEAR BONDS THAT WOULD BE THE SAME AMOUNT OF THREE AND 10YEAR NOTES AS IN NOVEMBER WHILE THE BOND OFFERING WOULD BE UNCHANGED FROM LAST AUGUST TRADERS ARE ALSO LOOKING AHEAD TO FRIDAY'S JANUARY EMPLOYMENT REPORT WALL STREET IS LOOKING FOR A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 200000 WHICH WOULD FOLLOW THE 183000 GAIN CHALKED UP IN DECEMBER THE REPUBLIC OF ICELAND MADE ITS DEBUT IN THE US CORPORATEBOND MARKET YESTERDAY WITH A 200 MILLION YANKEEBOND OFFERING AND IT RECEIVED A WARM RECEPTION THE REPUBLIC OF PORTUGAL GTE CORP PROPERTY TRUST OF AMERICA ALUMINUM CO OF AMERICA AND UNOCAL CORP ALSO CAME TO MARKET WITH MORE THAN 15 BILLION OF DEBT TRADING IN THE INVESTMENTGRADE AND JUNKBOND MARKETS WAS LIGHT WITH PRICES CHANGING LITTLE INVESTMENTGRADE TRADERS SPECULATED THAT UNCERTAINTY ABOUT THE FUTURE OF SHORTTERM INTEREST RATES MAY BE CURBING TRADING IN THE CORPORATEBOND MARKET A LOT OF ACCOUNTS ARE UNSURE ABOUT THE TREASURY MARKET ONE TRADER SAID HOWEVER ONE SYNDICATE OFFICIAL SAID THE LACK OF ACTIVITY IS TEMPORARY AND STEMS FROM THE RECENT FOCUS ON NEW ISSUES JUNKBOND OFFERINGS FROM ACF INDUSTRIES INC AND ACF INDUSTRIES HOLDING CORP CONTINUE TO STRUGGLE IN THE JUNKBOND MARKET MERRILL LYNCH IS LEADMANAGING THE DEAL THAT WAS EXPECTED TO PRICE LATE LAST WEEK INVESTORS ARE REPORTEDLY HAGGLING OVER COVENANT CHANGES FOR THE BOND OFFERINGS FROM THE TWO COMPANIES CONTROLLED BY FINANCIER CARL ICAHN MEANWHILE INVESTORS FLOCKED TO ICELAND'S YANKEE OFFERING OF 6125 COUPON 10YEAR NOTES WHICH WERE PRICED AT 9881 TO YIELD 6287 THROUGH LEAD MANAGER JP MORGAN SECURITIES ICELAND WITH A POPULATION OF 270000 MAY BE TINY BUT THE COUNTRY HAS A STRONG ECONOMY THAT IS VERY MUCH ON THE UPSWING SAID BOB HUGIN HEAD OF JP MORGAN'S FIXEDINCOME SYNDICATE YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US MUNICIPAL ISSUERS BROUGHT MORE THAN 1 BILLION OF DEBT TO THE MARKET DESPITE A PRICE SLIP THAT BOOSTED YIELDS THE DAY'S LARGEST ISSUE THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 6601 MILLION GENERALPURPOSE REVENUE BONDS CAME TO THE MARKET VIA A BEAR STEARNS GROUP FOLLOWING A REPRICING AT WHICH A FEW YIELDS WERE RAISED 10 TO 30 BASIS POINTS TO ATTRACT BUYERS YIELDS RANGE FROM 25 IN 1995 TO 528 IN 2024 THE INITIAL YIELD SCALE WAS 25 IN 1995 TO 525 IN 2024 IN SECONDARY DEALINGS MUNIS SLUMPED WITH TREASURYS ON CONCERNS ABOUT THE STRENGTHENING ECONOMY AND CLOSED AS MUCH AS 3/4 POINT LOWER THIS WEEK'S PRICING CALENDAR INCLUDES AT LEAST TWO MORE BIG ISSUES SAN DIEGO'S 430 MILLION PENSIONOBLIGATION BONDS ARE TO BE PRICED BY A MERRILL LYNCH GROUP AND THE NEW YORK STATE DORMITORY AUTHORITY'S 230 MILLION REVENUE BONDS ARE TO BE PRICED BY A GOLDMAN SACHS GROUP MEANWHILE YESTERDAY NEW YORK CITY COMPTROLLER ALAN HEVESI SAID HE EXPECTS MAYOR RUDOLPH GIULIANI'S BUDGET TO BE EXTRAORDINARILY PAINFUL AS IT ATTEMPTS TO ATTACK AN ESTIMATED 23 BILLION DEFICIT THE BUDGET IS SLATED TO BE UNVEILED TODAY NEW YORK IS ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL DEBT MR HEVESI SAID HE WANTS TO REDUCE THE CITY'S DEBTSERVICE COSTS WHICH HE SAYS IS EXCESSIVE NEW YORK CITY'S DEBT SERVICE IS APPROACHING 20 OF THE BUDGET HE SAID IT SHOULD BE 12 OR 13 PRICES OF MORTGAGEBACKED SECURITIES SLIPPED BUT NOT AS MUCH AS TREASURYS ALLOWING YIELDS ON CURRENT COUPON SECURITIES TO NARROW TO THE TREASURY'S 10YEAR NOTE GOOD BUYING HAS BEEN SEEN FOR SEVERAL SECTORS OF THE MORTGAGE MARKET ALTHOUGH FLOWS THIS SESSION WERE SAID TO BE LIGHT RISING INTEREST RATES ARE OFTEN VIEWED AS BULLISH FOR THE MARKET BECAUSE OF THE EFFECT THEY HAVE ON SLOWING PREPAYMENTS FREDDIE MAC GOLD 65S ARE YIELDING 653 ONLY 79 BASIS POINTS MORE THAN THE TREASURY'S 10YEAR NOTE THE 10YEAR NOTE IS A PRICING BENCHMARK FOR CURRENT COUPONS WHICH HAVE A SIMILAR AVERAGE LIFE AT THE CLOSE OF TRADING MONDAY THE YIELD SPREAD BETWEEN FREDDIE 65S AND THE 10YEAR NOTE WAS 83 BASIS POINTS GINNIE MAE 65S FOR FEBRUARY DELIVERY WERE ENDING DOWN 14/32 AT 99 28/32 FREDDIE MAC GOLD 65S WERE DOWN 13/32 AT 99 31/32 AND FANNIE MAE 65S WERE DOWN 13/32 AT 99 25/32 IN THE PRIMARY MARKET FANNIE MAE ANNOUNCED TWO REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING 1625 BILLION BACKED BY 15YEAR 65 SECURITIES AND A 2275 BILLION TRUST OF STRIPPED MORTGAGEBACKED SECURITIES BACKED BY 7 COLLATERAL ALSO THE AGENCY ANNOUNCED A 100 MILLION INCREASE OF A 30YEAR 75 REMIC AND A 25 MILLION INCREASE TO A STRIPPED MORTGAGEBACKED TRUST BACKED BY 15YEAR 65 MORTGAGE SECURITIES FREDDIE MAC ANNOUNCED A 1 BILLION INCREASE TO AN ISSUE OF GOLD MODIFIABLE AND COMBINABLE SECURITIES THE SIZE OF THE ISSUE WHICH WAS BACKED BY 30YEAR 75 SECURITIES WAS RAISED TO 225 BILLION FROM 1245 BILLION 9402020125 940202 LONDON EXCHANGE PLANS EQUITYINDEX CONTRACT LONDON THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGE SAID IT WILL LAUNCH A NEW FUTURES CONTRACT BASED ON THE FTSE MID250 EQUITY INDEX FEB 25 THREE WEEKS AFTER A COMPETITOR LAUNCHES A SIMILAR CONTRACT ROGER BARTON THE EXCHANGE'S MANAGING DIRECTOR SAID THE NEW CONTRACT IS THE RESULT OF INTENSIVE RESEARCH AND DEMAND FROM LIFFE MEMBERS AND UK FUND MANAGERS LOOKING TO BROADEN THEIR USE OF DERIVATIVE PRODUCTS VOLUME ON THE FTSE 100 FUTURES CONTRACT ON LIFFE LAST YEAR TOTALED 3119971 UP 19 FROM A YEAR EARLIER THE FTSE INDEX IS BRITAIN'S MOST WIDELY TRACKED MEASURE OF EQUITY PERFORMANCE MR BARTON SAID THE RECENT PERFORMANCE OF THE FTSE 250 INDEX DETERMINED THE APPROPRIATE TIMING FOR A LAUNCH IS NOW BUT LIFFE APPARENTLY HAS BEEN RUSHED INTO ANNOUNCING THE NEW CONTRACT BECAUSE OMLX THE LONDON SECURITIES AND DERIVATIVES EXCHANGE PLANS TO LAUNCH CONVENTIONAL AND FLEXIBLE FUTURES AND OPTIONS ON THE INDEX ON FRIDAY IN AN UNEXPECTED MOVE LAST NOVEMBER THE LONDON STOCK EXCHANGE AWARDED BOTH OMLX AND LIFFE LICENSES TO TRADE DERIVATIVES ON THE INDEX OF MEDIUMSIZED UK COMPANIES 9402020124 940202 TECHNOLOGY & HEALTH CHICKEN POX VACCINE WON'T PAY FOR ITSELF BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE CHICKEN POX VACCINE MADE BY MERCK & CO WON'T PAY FOR ITSELF IN SAVINGS TO THE HEALTHCARE SYSTEM RESEARCHERS PREDICTED BUT IF COSTS SUCH AS PARENTS' LOST WORK DAYS ARE INCLUDED THE RESEARCHERS CLAIM THE DRUG WILL BENEFIT SOCIETY THE CHICKEN POX VACCINE VARIVAX IS UNDER FOOD AND DRUG ADMINISTRATION REVIEW AFTER AN FDA PANEL LAST WEEK FOUND THE VACCINE SAFE AND EFFECTIVE SOME IMPORTANT MEDICAL QUESTIONS REMAIN UNRESOLVED HOWEVER SUCH AS WHETHER THE IMMUNITY WILL WANE OVER TIME ALLOWING THE DISEASE TO STRIKE IN ADULTHOOD WHEN IT IS MORE SERIOUS THE FDA COMMITTEE RECOMMENDED THAT THE AGENCY LOOK INTO THESE ISSUES BEFORE MAKING ITS FINAL DECISION IF THE DRUG CLEARS THE REGULATORY HURDLE THE VACCINE WILL THEN CONFRONT THE LARGER QUESTION WILL THE MARKET ACCEPT IT THAT WILL IN PART DEPEND ON WHETHER PHYSICIANS AND HEALTH INSURERS DECIDE THAT THE DRUG'S BENEFITS ARE WORTH ITS COST IN A STUDY PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION RESEARCHERS CONDUCTED A MATHEMATICAL ANALYSIS OF THE ECONOMIC CONSEQUENCES OF A CHICKEN POX VACCINATION PROGRAM THE STUDY INCLUDED COSTS ARISING FROM THE DISEASE INCLUDING MEDICATION HOSPITALIZATIONS EMERGENCYROOM VISITS AND PHYSICIAN VISITS THOSE COSTS WERE THEN COMPARED WITH THE COST OF A VACCINATION PROGRAM ESTIMATED AT 88 MILLION ANNUALLY OR 35 A DOSE THE VACCINATION PROGRAM WOULD PREVENT 37 MILLION CHICKEN POX CASES 9300 HOSPITALIZATIONS AND 52 DEATHS ANNUALLY THE RESEARCHERS PREDICTED THE PROGRAM HOWEVER WOULD COST 8 MILLION A YEAR MORE THAN IT WOULD SAVE IN DIRECT MEDICAL COSTS THE STUDY FOUND A CHICKEN POX VACCINATION PROGRAM WON'T SAVE HEALTH INSURERS MONEY SAID TRACY A LIEU OF THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO THE STUDY'S LEAD RESEARCHER MANY MEDICAL INTERVENTIONS COST MONEY BUT BECAUSE THEY ACHIEVE A BENEFIT THEY ARE JUDGED COSTEFFECTIVE SHE SAID WHEN THE RESEARCHERS INCLUDED INDIRECT COSTS OF CHICKEN POX SUCH AS WORK DAYS LOST WHEN PARENTS STAY HOME TO CARE FOR SICK CHILDREN THE PROGRAM MOVED INTO THE BLACK PRODUCING SAVINGS TO SOCIETY OF 384 MILLION A YEAR SUCH AN ANALYSIS MIGHT APPEAL TO EMPLOYERS WHO ARE SENSITIVE TO THE COST OF ABSENTEEISM SAID MIRIAM JACOBSON OF THE WASHINGTON BUSINESS GROUP ON HEALTH BUT ALAN L HILLMAN DIRECTOR OF THE CENTER FOR HEALTH POLICY AT THE UNIVERSITY OF PENNSYLVANIA SAID THE STUDY ASSUMES THE VACCINE WILL WORK IN MOST PEOPLE OVER THE LONG TERM WHICH HASN'T BEEN PROVEN IF THE VACCINE'S IMMUNITY WANES AND ADULTS DEVELOP CHICKEN POX THE MORE SERIOUS COMPLICATIONS CAN BE FAR MORE COSTLY HE SAID ANTHONY MASSO SENIOR VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA AN INDUSTRY GROUP SAID HEALTH INSURERS WOULD VIEW A CHICKEN POX VACCINATION PROGRAM AS BENEFICIAL FOR SOCIETY AND WOULD RECOMMEND THAT EMPLOYERS COVER PREVENTIVE SERVICES SUCH AS THE CHICKEN POX VACCINE 9402020123 940202 BUSINESS BRIEF AMERICAN GENERAL'S LOSS FOR 4TH QUARTER INCLUDED BIG CHARGE HOUSTON HIGHER TAXES AND LOWER INVESTMENT YIELDS STRAINED FOURTHQUARTER RESULTS AT AMERICAN GENERAL CORP THE INSURANCE AND FINANCIALSERVICES COMPANY HAD A LOSS OF 1635 MILLION OR 76 CENTS A SHARE COMPARED WITH PROFIT OF 1337 MILLION OR 62 CENTS A SHARE FOR THE YEARAGO QUARTER RESULTS INCLUDED A PREVIOUSLY ANNOUNCED 300 MILLION CHARGE TO WRITE DOWN ACQUISITIONRELATED GOODWILL IN ITS LIFEINSURANCE DIVISION EARNINGS BEFORE THE CHARGE WERE 1365 MILLION OR 63 CENTS A SHARE AT THE LOW END OF ANALYSTS' EXPECTATIONS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN GENERAL WAS DOWN 375 CENTS AT 2825 FOR THE YEAR AMERICAN GENERAL EARNED 204 MILLION OR 94 CENTS A SHARE AFTER ONETIME CHARGES UP FROM 533 MILLION OR 245 A SHARE A YEAR EARLIER ASSETS GREW 11 TO 4398 BILLION FROM 3974 BILLION AMERICAN GENERAL SAID PROFIT IN ITS LIFEINSURANCE DIVISION FELL 99 SALES GAINS IN THE DIVISION WERE MORE THAN OFFSET BY LOWER INVESTMENT YIELDS AND A 21 MILLION INCREASE IN INCOMETAX EXPENSE THAT RESULTED FROM THE LOSS OF SOME TAX BENEFITS EARNINGS ROSE 25 IN THE RETIREMENTANNUITIES DIVISION AND INCREASED 28 IN THE CONSUMERFINANCE DIVISION PRESIDENT JAMES R TUERFF SAID THE COMPANY EXPECTS CONTINUED SALES GROWTH IN 1994 IN LIFE INSURANCE IN ADDITION AMERICAN GENERAL PLANS TO INCREASE ITS ANNUITIES SALES FORCE TO 840 REPRESENTATIVES FROM 740 THIS YEAR AND PROJECTS BETTER RETURNS IN CONSUMER FINANCE THROUGH NEW PRODUCTS AND A COMPUTERIZED ACCOUNTING SYSTEM 9402020122 940202 MAPCO PIPELINE STATION IN IOWA SUSTAINS BLAST NO INJURIES REPORTED TULSA OKLA MAPCO INC SAID THERE WAS AN EXPLOSION AND FIRE AT ITS PIPELINE STATION NEAR IOWA CITY IOWA BUT THE COMPANY DIDN'T IMMEDIATELY KNOW THE EXTENT OF ANY DAMAGE NO ONE WAS INJURED IN THE BLAST WHICH OCCURED SHORTLY AFTER 9 AM EST YESTERDAY ACCORDING TO COMPANY SPOKESMAN RICK NEAL AN ASSOCIATED PRESS REPORT SAID WITNESSES HEARD FIVE EXPLOSIONS AND SAW FLAMES SHOOTING 100 FEET INTO THE AIR MAPCO'S MR NEAL SAID TWO COMPANY PIPELINES DELIVER NATURAL GAS LIQUIDS TO THE SITE WHERE THE LIQUIDS ARE STORED IN TWO UNDERGROUND CAVERNS AND PIPED TO SITES IN IOWA AND WISCONSIN ONE CAVERN HOLDS 200000 BARRELS OF AN ETHANEPROPANE MIXTURE THE OTHER HOLDS 400000 BARRELS OF PROPANE MR NEAL SAID THE FIRE WAS UNDER CONTROL AND THAT HE BELIEVED THE FIRE WAS LIMITED TO AN ABOVEGROUND PUMP MR NEAL DID NOT YET KNOW HOW OPERATIONS AT THE FACILITY MIGHT BE AFFECTED 9402020121 940202 POLITICS & POLICY LEVINE AND ZOGBY ODD COUPLE ON THE MIDEAST SEEK COMMON GROUND FOR ECONOMIC DEVELOPMENT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEL LEVINE SPENT A DECADE IN CONGRESS AS ONE OF ISRAEL'S MOST AGGRESSIVE SUPPORTERS JAMES ZOGBY HAS FOUNDED FOUR GROUPS TO DEFEND ARAB AND ARABAMERICAN RIGHTS THEY MET ONLY AS OPPONENTS JOUSTING ON CNN'S CROSSFIRE OR AT CONGRESSIONAL HEARINGS WHERE MR ZOGBY RECALLS THE CALIFORNIA DEMOCRAT RAKED ME OVER THE COALS NOW MESSRS LEVINE AND ZOGBY ARE COPRESIDENTS OF BUILDERS FOR PEACE A PRIVATE GROUP TRYING TO GET ARABAMERICAN AND US JEWISH BUSINESS LEADERS TO INVEST IN THE ISRAELIOCCUPIED WEST BANK AND GAZA BACKED BY THE CLINTON ADMINISTRATION THE TWO MEN BELIEVE THAT BOLSTERING THE PRIVATE ECONOMY IS THE BEST WAY TO PROMOTE PEACE IN THE AREAS ISRAEL HAS AGREED TO TURN OVER TO PALESTINIAN RULE THE DUO RECENTLY TOOK A GROUP OF US EXECUTIVES TO ISRAEL TO EXPLORE THE THEORY BUILDERS FOR PEACE IS A MICROCOSM OF THE COMPLEXITIES FACING ISRAELIS AND PALESTINIANS AS THEY TRY TO WORK OUT HOW TO LIVE TOGETHER PEACEFULLY IT IS AN IDEA FULL OF PROMISE AS EXEMPLIFIED BY THE WARM RELATIONS OF ITS TWO FOUNDERS BUT IT FACES MANY DAUNTING PROBLEMS NOT THE LEAST OF WHICH IS THE ACCUMULATED MISTRUST BUILT UP OVER THE DECADES OF TENSIONS IN THE MIDDLE EAST A PLACE WHERE THE PAST ALWAYS INTRUDES UPON THE PRESENT DESPITE THEIR PAST AND THE UPS AND DOWNS OF MIDEAST PEACE MESSRS LEVINE AND ZOGBY HAVE DEVELOPED AN EASY RAPPORT MR ZOGBY THE 48YEAROLD PRESIDENT OF THE ARAB AMERICAN INSTITUTE A PRIVATE POLITICAL AND POLICYRESEARCH GROUP COMPLAINED RECENTLY THAT BECAUSE OF HIS WORK WITH MR LEVINE HE WAS CALLED A COLLABORATOR BY THE ASSOCIATION OF ARAB AMERICAN UNIVERSITY GRADUATES YOU PEOPLE HAVE MORE ORGANIZATIONS THAN WE DO OBSERVES THE 50YEAROLD MR LEVINE YEAH BUT THAT'S BECAUSE YOU PEOPLE PUT ALL YOUR GROUPS TOGETHER AND CALL IT A FEDERATION RETORTS THE CIGARWIELDING MR ZOGBY YET AFFABILITY ALONE CAN'T BRIDGE THE VAST CULTURAL GAP SEPARATING ARABS AND JEWS MUTUAL SUSPICIONS SURFACED IMMEDIATELY WHEN MESSRS LEVINE AND ZOGBY BROUGHT TOGETHER ARAB AND JEWISH AMERICANS FOR THE FIRST PLANNING SESSION OF BUILDERS FOR PEACE AND DURING THE GROUP'S TRIP TO ISRAEL PALESTINIAN BUSINESS LEADERS BITTERLY VENTED THE FRUSTRATIONS RESULTING FROM A QUARTERCENTURY OF OCCUPATION EVEN MESSRS LEVINE AND ZOGBY TWO MAINSTREAM LIBERAL DEMOCRATS WHO HOLD SIMILAR VIEWS ON VIRTUALLY EVERY OTHER POLICY SUBJECT DON'T SEE EYE TO EYE ON THE MOST VITAL ASPECTS OF ISRAELIPALESTINIAN PEACE MR LEVINE STRONGLY OPPOSES AN INDEPENDENT PALESTINIAN STATE AS DO MOST ISRAELIS I WOULDN'T BE DOING THIS IF I WEREN'T CONVINCED IT WAS VERY MUCH IN ISRAEL'S INTEREST HE SAYS ON THE OTHER HAND MR ZOGBY THINKS SUCH A STATE IS INEVITABLE NECESSARY AND DESIRABLE THE TWO MEN ALSO REACTED DIFFERENTLY IN ISRAEL WHEN THEY HEARD A NUMBER OF PALESTINIAN ENTREPRENEURS COMPLAIN ABOUT ROUGH TREATMENT FROM ISRAELI OFFICIALS BEING TAXED WITHOUT RECEIVING BENEFITS FROM THE OCCUPYING ISRAELI GOVERNMENT AND BEING BARRED FROM THE ISRAELI MARKET MESSRS LEVINE AND ZOGBY HAD VOWED TO STEER CLEAR OF POLITICS BUT MR ZOGBY COULDN'T RESIST CITING THE OPPRESSION EVEN SUCCESSFUL PALESTINIANS ARE FORCED TO LIVE UNDER MR LEVINE A LAWYER WHO DIVIDES HIS TIME BETWEEN WASHINGTON AND LOS ANGELES STICKS TO THE ISRAELI LINE HE TENDS TO PLAY DOWN THE UNEQUAL TREATMENT PALESTINIANS RECEIVE AND EMPHASIZE THAT ISRAEL PROVIDES SERVICES SUCH AS WATER AND ELECTRICITY TO THE TERRITORIES UNBURDENED BY THE EMOTIONS OF OCCUPATION MR LEVINE'S MESSAGE IS TO STOP FOCUSING ON THE PAST AND CONCENTRATE ON BUSINESS OPPORTUNITIES IN THE FUTURE THAT'S THE GOAL OF BUILDERS FOR PEACE WHICH WAS BORN AMID THE EUPHORIA OF THE ISRAELIPALESTINIAN PEACE ACCORD SIGNED SEPT 13 AT THE WHITE HOUSE THE IDEA EMERGED FROM A MEETING THAT DAY BETWEEN PRESIDENT CLINTON AND A GROUP OF ARABAMERICAN AND US JEWISH BUSINESS EXECUTIVES LATER VICE PRESIDENT AL GORE ASKED MR LEVINE AN OLD FRIEND AND COLLEAGUE FROM THE HOUSE AND MR ZOGBY A WHITE HOUSE ADVISER ON ARABAMERICAN ISSUES TO HEAD THE PRIVATE OPERATION BUT THE EUPHORIA DIDN'T LAST LONG ABOUT SIX WEEKS LATER AT THE GROUP'S INITIAL DINNER AT WASHINGTON'S HAYADAMS HOTEL IT LOOKED MOMENTARILY LIKE BUILDERS FOR PEACE WOULD COLLAPSE AS THE GROUP WAITED FOR MR GORE WHO WAS AN HOUR LATE BOARD MEMBER NAJEEB HALABY THE FORMER PAN AMERICAN WORLD AIRWAYS CHIEF EXECUTIVE OFFICER AND THE FATHER OF JORDAN'S QUEEN BEGAN TALKING ABOUT THE INTOLERABLE CONDITIONS IN WHICH GAZANS AND WEST BANK PALESTINIANS LIVE ATTORNEY MAX KAMPELMAN ROSE TO DEFEND ISRAEL AND CHALLENGE THE CHARACTERIZATION IT WASN'T HORRIBLE OR AGGRESSIVE SAYS MR ZOGBY BUT EVERYBODY WAS STAKING OUT HIS OWN GROUND MR LEVINE REMEMBERS EXPERIENCING A FEELING OF RELIEF WHEN MR GORE FINALLY ARRIVED WHEN POLITICS IS KEPT ASIDE SOME PROMISING OPPORTUNITIES EMERGE ON THE TRIP TO ISRAEL LAST MONTH FOR INSTANCE STEVEN GREEN CHAIRMAN OF ASTRUM CORP A HOLDING COMPANY THAT OWNS SEVERAL LUGGAGE MANUFACTURERS INCLUDING SAMSONITE MET WITH A LUGGAGE MAKER IN GAZA THE GAZAN TOLD MR GREEN THAT HIS COMPANY COULD MEET MR GREEN'S COMPANY'S QUALITY STANDARDS AND MANUFACTURE ITS PRODUCTS IN THE MIDDLE EAST MR GREEN WAS SO IMPRESSED WITH THE PRESENTATION HE SAYS THAT HE ASKED SAMSONITE'S PRESIDENT TO FLY TO THE REGION FOR FURTHER TALKS I THINK I SAW SOME IMPACT SAYS MR GREEN A DIALOGUE WAS STARTED TODAY THAT ALLOWED PEOPLE TO EXPRESS BOTH THEIR CONCERNS AND THEIR OPTIMISM ABOUT WHAT THEY CAN DO WITH THEIR BUSINESSES BUILDERS FOR PEACE ALSO WILL NEED TO USE ITS CONNECTIONS WITH MR GORE TO HELP REMOVE SOME BUREAUCRATIC ROADBLOCKS IN THE WAY OF BUSINESS OPPORTUNITIES LEO KRAMER AN AMERICAN CONSULTANT AND BUSINESSMAN SAYS THAT US GOVERNMENT AGENCIES SUCH AS THE AGENCY FOR INTERNATIONAL DEVELOPMENT MOVE TOO SLOWLY AND AREN'T SUFFICIENTLY ACCUSTOMED TO WORKING WITH THE PRIVATE BUSINESS SECTOR TO BRING THE NEEDED QUICK PAYOFF TO THE OCCUPIED TERRITORIES WHERE THE UNEMPLOYMENT RATE IS ABOUT 40 GOVERNMENT AID IS NEEDED TO BUILD THE STRUCTURE IN WHICH PRIVATE BUSINESS CAN THRIVE THE GROUP'S SUCCESS ALSO WILL DEPEND HEAVILY ON THE PROGRESS OF THE PEACE TALKS BETWEEN ISRAEL AND PALESTINIANS AS WELL AS ISRAEL'S WILLINGNESS TO RELINQUISH CONTROL OVER THE DAILY LIVES OF PALESTINIANS MESSRS LEVINE AND ZOGBY SAY THEY HAVE A COMMITMENT FROM ISRAEL'S MINISTER OF INDUSTRY AND TRADE MICHA HARISH TO APPOINT A LIAISON TO WORK WITH BUILDERS FOR PEACE MEL AND I HAVE DIFFERENCES ABOUT THE PAST AND ABOUT THE FUTURE SAYS MR ZOGBY BUT IN THE PRESENT WE HAVE A COMMON INTEREST IN HELPING CREATE STABILITY IN THE WEST BANK AND GAZA 9402020120 940202 TEXAS JOURNAL TAX AIMED AT CREATING JOBS MISSES MARK HALFCENT TAX GOES TO SUPPORT HOSPITAL AND KILLERBEE STATUE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL SOMETHING HAS GONE AWRY IN RURAL TEXAS' QUEST FOR ECONOMIC DEVELOPMENT IN HIDALGO FUNDS EARMARKED FOR THE CREATION OF NEW INDUSTRIAL JOBS WERE USED TO BUILD A STATUE OF A GIANT KILLER BEE IN CAMERON OFFICIALS ARE USING SIMILAR FUNDS TO KEEP THE LOCAL HOSPITAL AFLOAT AND IN KEMAH OFFICIALS APPROVED USING SUCH MONEY FOR THE PURCHASE AND STRINGING OF CHRISTMAS LIGHTS IN THE TOWN IT'S KIND OF A CONSTANT BATTLE TO KEEP THIS MONEY RESERVED FOR WHAT IT WAS INTENDED FOR SAYS SEN BILL RATLIFFE A REPUBLICAN FROM MOUNT PLEASANT THERE ARE GOING TO BE CASES WHERE PEOPLE DON'T USE IT WISELY IF ANYBODY KNOWS THE PURPOSE OF THIS MONEY IT'S MR RATLIFFE IN 1989 HE SPONSORED THE LEGISLATION THAT GAVE TEXAS' SMALLER CITIES THOSE IN COUNTIES WITH FEWER THAN 500000 PEOPLE THE OPPORTUNITY TO COLLECT UP TO A 1/2CENT SALES TAX PROVIDED THE PROCEEDS WERE USED FOR THE CREATION OF INDUSTRIAL JOBS THE LAW WAS AMENDED TWO YEARS LATER PERMITTING SOME LARGER CITIES TO COLLECT THE TAX AND USE IT FOR A BROADER RANGE OF PURPOSES ARLINGTON'S 190 MILLION STADIUM WAS PRIMARILY FINANCED BY THE TAX CURRENTLY 119 CITIES LEVY THE SALES TAX WHICH HAS GENERATED MORE THAN 150 MILLION SINCE 1989 AND LAST MONTH 15 NEW CITIES VOTED TO BEGIN COLLECTING THE TAX THE INCENTIVES HAVE BECOME A VERY BIG PART OF ECONOMIC DEVELOPMENT IN TERMS OF RECRUITING COMPANIES AND IN KEEPING THE ONES YOU HAVE SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORP THE AGENCY THAT OVERSEES THE SPENDING OF THE SALES TAX THEY ARE PARTICULARLY NECESSARY TOOLS IN COMMUNITIES THAT ARE OUTSIDE THE MAJOR URBAN AREAS MR BOURN SAYS THAT AMARILLO HAS SPENT ABOUT 20 MILLION TO SPONSOR 24 PROJECTS THAT ARE EXPECTED TO CREATE 4400 DIRECT AND INDIRECT JOBS BUT CONCERN THAT THE TAX IS BEING MISUSED HAS RAISED THE POSSIBILITY THAT THE LEGISLATURE WILL CRACK DOWN EITHER BY REQUIRING STATE APPROVAL FOR EXPENDITURES IMPOSING STRICTER GUIDELINES OR DOING AWAY WITH THE TAX ALTOGETHER IT CAN AND SHOULD BE A VALUABLE TOOL FOR THE ECONOMIC DEVELOPMENT OF TEXAS SAYS BILL R SHELTON MANAGING DIRECTOR OF THE CORNERSTONE GROUP A FORT WORTH CONSULTING FIRM THAT HAS CONDUCTED SURVEYS ON CITIES' USE OF THE TAX THE ABUSES UNFORTUNATELY ARE NOT GOING UNNOTICED THOSE ABUSES CRITICS SAY COVER A WIDE RANGE SOME TOWNS THEY SAY SPEND MONEY ON PROJECTS THAT APPEAR TO BE CLEARLY OUTSIDE THE PURPOSE OF CREATING INDUSTRIAL JOBS BUYING CHRISTMAS LIGHTS FOR INSTANCE OR EXPANDING THE COUNTY COURTHOUSE BUT A BIGGER PROBLEM CRITICS CHARGE IS THAT MANY SMALL TOWNS DON'T HAVE THE EXPERTISE TO EVALUATE INVESTMENT OPTIONS AND END UP THROWING MONEY AWAY ON QUESTIONABLE PROJECTS THAT SOME SUGGEST IS WHAT HAPPENED IN COPPERAS COVE A CITY OF 24000 NEAR KILLEEN THE PROBLEMS STARTED WHEN THE BOARD OF THE LOCAL ECONOMICDEVELOPMENT CORPORATION GUARANTEED A 14000 LOAN TO A LOCAL PHOTOGRAPHY STUDIO THE STUDIO OFFICIALS SAY WANTED TO HIRE ANOTHER EMPLOYEE AND PURCHASE NEW EQUIPMENT IN ORDER TO EXPAND INSTEAD THE COMPANY DEFAULTED ON THE LOAN AND LEFT TOWN WITH THE COLLATERAL BUT THAT'S NOT THE WORST OF IT THE BOARD LAST YEAR ALSO BACKED A LOAN FOR MORE THAN 1 MILLION FOR NO TOUCH INC A STARTUP CONTAINERMANUFACTURING COMPANY SIX MONTHS LATER THE BOARD GUARANTEED ANOTHER 300000 LOAN THIS ONE FROM THE LOCAL BANK AND IN ANTICIPATION OF THE SUPPORT OPERATIONS NO TOUCH WOULD NEED THE BOARD GUARANTEED A 49000 LOAN FOR THE COVE TOOL & DIE MFG CO A COPPERAS COVE FIRM BUT LATE LAST YEAR CITY OFFICIALS SAY NO TOUCH FILED FOR REORGANIZATION UNDER THE BANKRUPTCY LAWS COVE TOOL QUICKLY FOLLOWED AND NOW THE COPPERAS COVE ECONOMIC DEVELOPMENT CORP IS REPAYING ALL THE DEBT THE EPISODE HAS ALL BUT DEPLETED THE CITY'S ECONOMICDEVELOPMENT FUNDS AND PROMPTED CALLS TO REPEAL THE TAX AND DISBAND THE CORPORATION AFTER TWO YEARS OF COLLECTING AN ESTIMATED 12 MILLION IN TAX FUNDS THE CORPORATION IS LEFT WITH A BALANCE OF ABOUT 33500 AND IT STILL HAS TO PAY OFF MOST OF THE 1 MILLION LOAN TWO WEEKS AGO THE ECONOMIC DEVELOPMENT BOARD FIRED EXECUTIVE DIRECTOR AND FORMER CITY MAYOR JIM FRENCH WE CREATED THE ECONOMICDEVELOPMENT CORPORATION IN HOPES OF DIVERSIFYING OUR ECONOMY SAYS TERESA CLEGHORN EDITOR OF THE COPPERAS COVE LEADERPRESS THE TOWN'S WEEKLY NEWSPAPER INSTEAD OF HAVING HUNDREDS OF NEW JOBS WE HAVE A LOT OF PEOPLE WHO ARE UNEMPLOYED BECAUSE THE COMPANIES THEY WERE WORKING FOR ARE IN BANKRUPTCY OTHER TOWNS HAVE BEEN CRITICIZED FOR PUTTING THE TAX MONEY INTO PROJECTS THAT ARE OUTSIDE THE LEGISLATION'S REQUIREMENTS WHETHER THE SPENDING IS ILLEGAL HASN'T BEEN TESTED BUT THERE'S NO QUESTION THAT SOME OF THE PROJECTS HAVE BEEN WELL ODD IN HIDALGO THE CITY SPENT NEARLY 20000 IN 1992 TO ERECT A FIBERGLASS AND STEEL STATUE OF THE KILLER BEE HIDALGO SAY CITY OFFICIALS WAS THE PLACE WHERE THE AFRICANIZED HONEY BEES FIRST CROSSED INTO THE US IN 1990 THE BIG BEE WAS FUNDED WITH ECONOMICDEVELOPMENT TAX FUNDS UNDER PROVISIONS THAT ALLOW SOME OF THE MONEY TO BE SPENT ON MARKETING AND PROMOTION HIDAGLO OFFICIALS CONCEDE THE BEE PROBABLY SEEMS SILLY TO OUTSIDERS BUT THEY MAKE NO APOLOGIES THE BEE THE CITY CLAIMS HAS GENERATED MUCH MORE THAN 20000 WORTH OF NATIONAL PUBLICITY AND TOUR BUSES NOW STOP TO SEE THE BEE WE HAVE OVER 25000 CARS THAT COME ACROSS THE INTERNATIONAL BRIDGE EVERY DAY GOING TO AND FROM MCALLEN BUT THEY JUST DRIVE THROUGH OUR TOWN SAYS JOE VERA PRESIDENT OF THE HIDALGO CHAMBER OF COMMERCE WE FEEL LIKE WE'VE DETOURED SOME OF THAT TRAFFIC IN THE EAST TEXAS CITY OF ATHENS ABOUT 3 MILLION IN SALESTAX FUNDS WERE USED TO WOO A FISH HATCHERY BUT WHAT MADE THIS DEAL UNUSUAL IS THAT IT IS A STATEOPERATED FISH HATCHERY OTHER CITIES SUCH AS ABILENE AND AMARILLO HAVE USED THE TAX FUNDS TO COURT STATEOPERATED PRISONS BUT THE FISH HATCHERY HAS PROMPTED THE MOST CRITICISM BECAUSE PRISONS AT LEAST CAN CREATE HUNDREDS OF JOBS THE FISH HATCHERY SCHEDULED FOR GROUNDBREAKING THIS MONTH SHOULD CREATE 19 JOBS IT IS CERTAINLY ON THE MARGINS OF GOOD USE FOR IT SAYS SEN RATLIFFE WHO WHILE RELUCTANT TO CRITICIZE USE OF THE MONEY FOR PRISONS CONCEDES IT'S A LITTLE IRONIC THEY WOULD USE IT TO ATTRACT STATE PAYROLL ATHENS OFFICIALS ADMIT 3 MILLION FOR 19 JOBS PROBABLY SOUNDS LIKE A BAD DEAL BUT THEY ARGUE THAT THE FISH HATCHERY WILL BOOST TOURISM ALTHOUGH CITY OFFICIALS SAY ATHENS NOW ATTRACTS ABOUT 60000 TOURISTS A YEAR THEY CLAIM A STUDY FOUND THE FISH HATCHERY WOULD BOOST THAT NUMBER BY 300000 TO 500000 PEOPLE THIS PART OF TEXAS IS WELL KNOWN FOR ITS BASS FISHING SAYS DON MANNING ATHENS CITY MANAGER WHO SAYS THAT THE CITY ALSO HAS USED ITS SALESTAX MONEY TO ATTRACT A MEDICALSUPPLY COMPANY ONE OF THE MOST QUESTIONABLE USES OF THE TAX FUNDS IS IN CAMERON WHERE ALL OF THE CITY'S ESTIMATED 339000 IN SALESTAX COLLECTIONS HAS GONE TOWARD PAYING OFF 600000 IN OPERATING BONDS FOR CENTRAL TEXAS HOSPITAL TEXAS ATTORNEY GENERAL DAN MORALES HAS ISSUED AN OPINION STATING THAT THE TAX MONEY CAN NOT BE USED TO SUPPORT HOSPITALS BUT THE PRACTICE CONTINUES THEY JUSTIFIED IT BY SAYING THAT IF THERE WASN'T A HOSPITAL THAT INDUSTRY WOULDN'T STAY OR WOULDN'T COME INTO CAMERON SAYS JANET SHEGUIT TAX ASSESSOR COLLECTOR ONE OTHER CONCERN ABOUT THE WAY THE TAX HAS WORKED OUT TEXAS TOWNS AREN'T ONLY COMPETING WITH OTHER STATES FOR NEW JOBS THEY'RE COMPETING WITH EACH OTHER THE CITY OF ALLEN FOR INSTANCE SCORED BIG WHEN IT CONVINCED TRW INFORMATION SYSTEMS A UNIT OF TRW INC CLEVELAND TO CONSOLIDATE OFFICES PREVIOUSLY LOCATED IN RICHARDSON DALLAS AND ANAHEIM CALIF IN ALLEN BRINGING WITH IT 1000 JOBS BUT ALLEN'S SUCCESS CAME AT THE EXPENSE OF DALLAS AND RICHARDSON NEITHER OF WHICH ARE ELIGIBLE TO COLLECT THE TAX IN SOME WAYS IT GIVES US A MUCH GREATER ADVANTAGE OVER CITIES THAT DON'T HAVE THE TAX SAYS DAVID PITSTICK DIRECTOR OF THE ALLEN ECONOMIC DEVELOPMENT CORP BUT IF WE DIDN'T HAVE IT COULD WE COMPETE WITH BIGGER CITIES NO WAY DESPITE ALL THE PROBLEMS SEN RATLIFFE IS HESITANT TO CALL FOR CHANGES IN THE LAW THE BOTTOM LINE HE SAYS IS THAT ELECTED CITY OFFICIALS DECIDE HOW TO SPEND THE MONEY EITHER BY THEMSELVES OR THROUGH THEIR APPOINTED REPRESENTATIVE I ASSUME THESE PLACES HAVE VOTERS SEN RATLIFFE SAYS AND IF THEY THINK THIS MONEY IS NOT BEING SPENT THE WAY IT OUGHT TO BE SOMEBODY OUGHT TO BE CALLED TO ANSWER FOR IT BUT AS A RESULT OF THE CONCERNS STATE ECONOMICDEVELOPMENT OFFICIALS ARE WORKING WITH CITIES TO CLARIFY THE DOS AND DON'TS THE TEXAS INDUSTRIAL DEVELOPMENT COUNCIL INC WHOSE MEMBERS INCLUDE ECONOMICDEVELOPMENT CORPORATIONS AND CHAMBERS OF COMMERCE IS CREATING A SPECIAL NEWSLETTER JUST FOR THOSE CITIES THAT COLLECT THE TAX TWO INFORMATION MEETINGS IN PLANO AND SAN ANTONIO ALSO ARE SCHEDULED IN THE COMING MONTHS AND THE GROUP IS SOLICITING INPUT FROM MEMBERS TO DETERMINE WHETHER TO LOBBY FOR CHANGES IN THE LAW DURING THE NEXT LEGISLATIVE SESSION THE TAX IS BEGINNING TO BE JUST ANOTHER REVENUE SOURCE FOR THE CITY IT'S NOT BEING USED TO CREATE NEW JOBS SAYS JOE NEWMAN EXECUTIVE DIRECTOR OF THE INDUSTRIAL DEVELOPMENT COUNCIL WE'RE VERY CONCERNED THAT IT'S GOING TO DILUTE THE ORIGINAL PURPOSE OF THE BILL QUITE A BIT 9402020119 940202 LETTERS TO THE EDITOR PROTECT OUR VITAMINS ALLEGED CASES OF VITAMIN ABUSE ARE EXTREMELY RARE BUT HAVE BEEN TRUMPETED ABOUT RECENTLY BY THE FDA AS IT SEEKS TO RESTRICT OUR ACCESS TO VITAMINS AND FOOD SUPPLEMENTS PLEASE DON'T ALLOW YOURSELVES TO BECOME AN UNWITTING PAWN IN THE FDA'S DANGEROUS POWER GRAB THE LIVES AND WELLBEING OF MILLIONS OF US ARE AT STAKE YOU POINTED OUT THE WIDESPREAD PAINKILLER ABUSE GOING ON IN AMERICAN OFFICES I AM SHOCKED TO SEE BOTTLES OF TYLENOL ON MANY EXECUTIVES' DESKS WHERE THEY YIELD FREQUENT DOSES THERE IS SOMETHING VERY WRONG WITH THIS SITUATION AND YOUR REPORTER HIT IT RIGHT BUT PLEASE DON'T CONFUSE VITAMINS WITH PAINKILLERS ONE IS A FOOD THE OTHER A DRUG 9402020118 940202 WHO'S NEWS NUWEST INDUSTRIES INC NUWEST INDUSTRIES INC ENGLEWOOD COLO THE COMPANY SAID ITS CHAIRMAN E THEODORE STOLBERG WILL LEAVE HIS POST WHEN HIS TERM EXPIRES FEB 24 THE MAKER OF PHOSPHATE FERTILIZER PRODUCTS SAID CRAIG HARLEN THE COMPANY'S CHIEF EXECUTIVE OFFICER AND PRESIDENT IS EXPECTED TO SUCCEED MR STOLBERG AS CHAIRMAN MR HARLEN IS 44 YEARS OLD PETER B PFISTER WAS NAMED TO SUCCEED MR STOLBERG AS A DIRECTOR MR PFISTER 34 IS A PARTNER IN WEISS PECK & GREER AN INVESTMENT FIRM THAT OWNS A MAJORITY STAKE IN NUWEST IN AN INTERVIEW MR STOLBERG WHO IS 44 AND HAS BEEN CHAIRMAN OF NUWEST SINCE THE COMPANY WAS FOUNDED IN 1987 SAID HE IS LEAVING TO DEVOTE MORE TIME TO STOLBERG PARTNERS A NEW YORK INVESTMENT FIRM THAT HE STARTED IN MARCH 9402020117 940202 ALLSTATE IS EXPECTING TO PAY 350 MILLION IN CLAIMS ON QUAKE NORTHBROOK ILL ALLSTATE CORP SAID IT EXPECTS TO PAY 350 MILLION IN CLAIMS ON THE LOS ANGELES EARTHQUAKE SUGGESTING THE INSURANCE INDUSTRY MIGHT END UP PAYING MORE IN CLAIMS THAN THE 2 BILLION CURRENTLY ESTIMATED MOST OF ALLSTATE'S LOSSES STEM FROM HOMEOWNERS INSURANCE THE COMPANY HAS ABOUT 156 OF THE CALIFORNIA MARKET FOR HOMEOWNERS COVERAGE SUGGESTING INDUSTRYWIDE HOMEOWNER CLAIMS OF ABOUT 22 BILLION BUT THAT WOULD ONLY BE PART OF THE TOTAL COST THE INDUSTRY MUST ALSO PAY CLAIMS FOR DAMAGE TO COMMERCIAL PROPERTIES AND FOR INCOME LOST BY POLICYHOLDERS WITH BUSINESSINTERRUPTION COVERAGE ALLSTATE THE SECONDLARGEST HOMEOWNERINSURANCE COMPANY AFTER STATE FARM MUTUAL LIFE INSURANCE CO IS THE FIRST MAJOR HOMEOWNERS INSURER TO REPORT ITS CLAIMS COST ON THE EARTHQUAKE BY COMPARISON ALLSTATE PAID 27 BILLION IN CLAIMS ON HURRICANE ANDREW IN 1992 ALTHOUGH THE SEARS ROEBUCK & CO UNIT DIDN'T SAY HOW MUCH ITS NET FINANCIAL LOSS WILL BE ON THE EARTHQUAKE THE LOSS FIGURE ISN'T EXPECTED TO DIFFER WIDELY FROM THE CLAIMS AMOUNT BECAUSE ALLSTATE HAS LITTLE REINSURANCE FOR ITS HOMEOWNERS COVERAGE REINSURANCE ALLOWS INSURANCE COMPANIES TO TRANSFER RISK AMONG EACH OTHER VIRTUALLY NO REINSURANCE APPLIES HERE SAID AN ALLSTATE SPOKESWOMAN THE COMPANY SAID IT RECEIVED MORE THAN 25000 CLAIMS INCLUDING BOTH AUTO AND PROPERTY SEPARATELY TRAVELERS INC SAID IT DOESN'T EXPECT ITS NET COSTS ON THE EARTHQUAKE AFTER TAXES AND REINSURANCE WILL BE MORE THAN 15 MILLION TRAVELERS RECEIVED FEWER THAN 150 CLAIMS 9402020116 940202 DIVIDEND NEWS MOTOROLA APPROVES STOCK SPLIT INCREASES ITS DIVIDEND BY 27 SCHAUMBURG ILL MOTOROLA INC SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT AND INCREASED THE ELECTRONICS COMPANY'S QUARTERLY DIVIDEND BY 27 THE BOARD'S MOVES REFLECT MOTOROLA'S CONTINUED STRONG SHOWING IN 1993 LAST MONTH THE COMPANY REPORTED AN 88 SURGE IN FOURTHQUARTER PROFIT AND SAID IT MORE THAN DOUBLED ITS 1992 RESULTS FOR THE YEAR THE STOCK SPLIT WILL BE IN THE FORM OF A STOCK DIVIDEND PAYABLE APRIL 18 TO HOLDERS OF THE COMPANY'S SHARES ON MARCH 15 THE INCREASED QUARTERLY DIVIDEND WHICH RISES TO 14 CENTS FROM 11 CENTS IS EFFECTIVE ON A PRESPLIT BASIS WITH THE SAME PAY AND RECORD DATES MOTOROLA LAST SPLIT ITS STOCK AND INCREASED ITS DIVIDEND IN 1992 9402020115 940202 POINT ARGUELLO'S OUTPUT IS LIKELY TO DROP SHARPLY SANTA BARBARA CALIF CHEVRON CORP'S TORTURED HISTORY OF OFFSHORE OPERATIONS NEAR HERE SUFFERED YET ANOTHER BLOW YESTERDAY WHEN BUREAUCRATIC INDECISION COMBINED WITH THE AFTEREFFECTS OF THE NORTHRIDGE EARTHQUAKE MADE IT LIKELY THAT PRODUCTION WILL HAVE TO BE CUT TO ABOUT ONEFIFTH OF CAPACITY AFTER HUGE INVESTMENTS AND MORE THAN A DECADE OF CONTROVERSY OVER THE POINT ARGUELLO FIELD THE LARGEST DOMESTIC OIL DISCOVERY SINCE THE LATE 1960S CHEVRON FAILED TO MEET A FEB 1 DEADLINE FOR A FIRM AGREEMENT TO BUILD A NEW PIPELINE TO CARRY CRUDE SOUTH TO LOS ANGELES REFINERIES CHEVRON AND REGULATORS PREVIOUSLY AGREED THAT WITHOUT SUCH AN ACCORD AND WITHOUT THE NECESSARY CONSTRUCTION PERMITS NO MORE TANKERS WOULD BE USED TO SHIP OIL FROM THE FIELD BUT NOBODY FACTORED IN LAST MONTH'S EARTHQUAKE THE DAMAGE HAS TEMPORARILY SHUT DOWN ONE OF THE PIPELINES SERVING POINT ARGUELLO A SECOND LINE HAS TEMPORARILY REDUCED THE AMOUNT OF OIL IT IS CARRYING STATE AND COUNTY OFFICIALS HAVE PUT OFF CHEVRON'S REQUEST TO CONTINUE USING TANKERS ON AN EMERGENCY BASIS SO CHEVRON IS STORING LARGE AMOUNTS OF CRUDE IN TEMPORARY TANKS BUT BY NEXT WEEK UNLESS THE IMPASSE IS BROKEN PRODUCTION IS LIKELY TO PLUMMET TO ABOUT 20000 BARRELS A DAY IN A FIELD WHOSE MAXIMUM IS CLOSE TO 100000 BARRELS A DAY AND COMPANY OFFICIALS ARE FUMING CHAIRMAN KENNETH DERR WHO HAS ARGUED THAT ENVIRONMENTAL CONTROLS ON THE INDUSTRY ARE EXCESSIVE AND A NATIONAL DISGRACE CITES POINT ARGUELLO AS SPURRING CHEVRON'S INCREASING FOCUS OVERSEAS 9402020114 940202 GENESCO PLANS TO TAKE CHARGE OF 38 MILLION TRIM 20 OF PAYROLL NASHVILLE TENN GENESCO INC HURT BY SLUGGISH SALES OF CLOTHING AND FOOTWEAR SAID IT WILL TAKE A 38 MILLION FOURTHQUARTER CHARGE FOR A RESTRUCTURING THAT WILL INCLUDE ELIMINATING 1400 JOBS OR 20 OF THE COMPANY'S WORK FORCE THE CLOTHING AND FOOTWEAR MANUFACTURER AND RETAILER SAID THE RESTRUCTURING WOULD REDUCE MANUFACTURING CAPACITY CORPORATE OVERHEAD AND OPERATING EXPENSES AS PART OF THE RESTRUCTURING GENESCO SAID IT WILL CLOSE ABOUT 60 OF ITS 530 RETAIL SHOE STORES A SPOKESWOMAN SAID THE COMPANY HASN'T YET DECIDED WHICH OF ITS 14 PLANTS WILL BE AFFECTED GENESCO HAS THREE FOOTWEAR CHAINS JARMAN JOHNSTON & MURPHY AND JOURNEYS THE JOURNEYS CHAIN WHICH SELLS SHOES TO THE TEENAGE MARKET HAS BEEN THE WEAKEST PERFORMER BUT THE COMPANY HASN'T YET DETERMINED WHICH STORES WOULD BE CLOSED THE SPOKESWOMAN SAID SOME OF ITS FOOTWEAR BRANDS SUCH AS LAREDO WESTERN BOOTS HAVE SOLD WELL IN WESTERNWEAR SHOPS BUT OTHERS SUCH AS CODE WEST A FASHION BOOT SOLD IN DEPARTMENT STORES HAD WEAKER SALES IN APPAREL GENESCO BLAMES THE MOVE TOWARD MORE CASUAL DRESS AT THE WORKPLACE FOR WEAKER SALES OF TAILORED CLOTHING IN THE YEAREARLIER PERIOD ENDED JAN 31 1993 NET INCOME WAS 36 MILLION OR 15 CENTS A SHARE THE QUARTER INCLUDED A CHARGE OF 583000 OR TWO CENTS A SHARE FROM EARLY RETIREMENT OF DEBT GENESCO SAID IT REVISED ITS CREDIT AGREEMENTS WITH ITS BANKS PROVIDING AS MUCH AS 100 MILLION TO THE COMPANY 9402020113 940202 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN HEALTHIER FINANCES IN MANY STATES AND CITIES EASE PRESSURES TO RAISE TAXES FOR THE FIRST TIME IN RECENT MEMORY NO REGION IS IN DECLINE AND EVEN THE MORE TROUBLED ECONOMIES OF CALIFORNIA AND THE NORTHEAST SEEM TO HAVE BOTTOMED OUT SAYS A REPORT BY MOODY'S INVESTORS SERVICE INC MANY STATE AND LOCAL GOVERNMENTS BENEFIT FROM STRONGER ECONOMIC GROWTH HIGHER TAX REVENUE AND SHARPLY LOWER BORROWING COSTS SAYS DANIEL HEIMOWITZ MOODY'S EXECUTIVE VICE PRESIDENT BUT WARNING FLAGS STILL FLY IN SOME PLACES MOODY'S REMAINS CONCERNED ABOUT CALIFORNIA ESPECIALLY IN THE AFTERMATH OF THE EARTHQUAKE THE ECONOMIC SLUMP IN THE LOS ANGELES AREA HAS BEEN DEEPER AND MORE PROLONGED THAN ANY SINCE WORLD WAR II THE REPORT SAYS SCHOOL FINANCE REFORM IN MICHIGAN HAS CREATED GREAT UNCERTAINTY FOR SCHOOLS AND CITIES THERE BUT A PRICE WATERHOUSE REPORT SAYS THAT WITH ELECTIONS COMING UP 1994 WILL NOT BE A BIG YEAR FOR TAX INCREASES FOR A MAJORITY OF STATES MORE STATES SUCH AS OHIO AND MINNESOTA MAY EVEN CONSIDER TAX CUTS SAYS DOUG LINDHOLM OF PRICE WATERHOUSE SOME HOMEOWNERS WHO REFINANCED MAY BE OVERLOOKING A VALUABLE DEDUCTION MANY PEOPLE TOOK ADVANTAGE OF LOW INTEREST RATES LAST YEAR TO REFINANCE THEIR MORTGAGE FOR A SECOND OR THIRD TIME SOME OF THOSE PEOPLE NOW MAY BE ABLE TO DEDUCT MORE OF THE POINTS THEY PAID ON THE EARLIER REFINANCING THAN THEY REALIZE SAYS LARRY AXELROD A PARTNER AT DELOITTE & TOUCHE POINTS ARE A FORM OF PREPAID INTEREST THAT LENDERS TYPICALLY CHARGE AS AN UPFRONT FEE POINTS PAID ON A REFINANCING GENERALLY ARE DEDUCTED OVER THE LIFE OF THE LOAN SUPPOSE SOMEONE WHO REFINANCED IN 1992 AND PAID POINTS DID SO AGAIN IN 1993 FROM A DIFFERENT LENDER PAYING POINTS AGAIN POINTS PAID ON THE 1993 REFINANCING SHOULD BE DEDUCTED OVER THE LIFE OF THE NEW LOAN BUT POINTS FROM THE EARLIER REFINANCING THAT HAVEN'T YET BEEN DEDUCTED MAY BE DEDUCTED IN FULL FOR 1993 MR AXELROD SAYS FEWER TAX BATTLES CLOG THE COURTS BUT THE STAKES ARE HIGHER THESE TRENDS EMERGE FROM A REPORT TO BE PRESENTED TODAY BY DAVID L JORDAN THE IRS'S ACTING CHIEF COUNSEL TO NEW MEMBERS OF THE IRS COMMISSIONER'S ADVISORY GROUP AS OF SEPT 30 THE TAX COURT FACED A BACKLOG OF 42074 CASES DOWN FROM 54135 THREE YEARS EARLIER BUT THE AMOUNT OF MONEY AT STAKE ROSE TO 36 BILLION AS OF SEPT 30 FROM 334 BILLION THREE YEARS EARLIER MR JORDAN SAYS AN ADDITIONAL 31 BILLION WAS AT STAKE IN OTHER COURTS AS OF SEPT 30 UP FROM 2 BILLION IN 1990 WE'RE GETTING FEWER CASES BUT THE CASES WE'RE GETTING ARE MUCH LARGER SAYS MR JORDAN AS OF SEPT 30 THERE WERE 286 TAX COURT CASES THAT EACH INVOLVED MORE THAN 10 MILLION OF THOSE 180 INVOLVED CORPORATE INCOMETAX ISSUES 64 DEALT WITH INDIVIDUAL INCOMETAX ISSUES AND THE OTHER 42 WERE ON ESTATE AND GIFTTAX ISSUES THE CORPORATE CASES INVOLVED 211 BILLION THE INDIVIDUAL INCOMETAX CASES INVOLVED 21 BILLION AND THE ESTATE AND GIFTTAX CASES 24 BILLION LESS THAN 1 OF ALL TAX COURT CASES ACCOUNTED FOR MORE THAN 70 OF THE DOLLARS AT STAKE IN ALL CASES AT LAST AN ADMINISTRATION OFFICIAL SAYS WE ARE VERY CLOSE TO ANNOUNCING A NOMINEE FOR THE JOB OF IRS CHIEF COUNSEL THE POSITION HAS BEEN VACANT FOR ABOUT A YEAR EARTHQUAKE VICTIMS IN CALIFORNIA GET A NEW BREAK THEY WON'T OWE PENALTIES ON RETURNS OR TAXES DUE BETWEEN JAN 15 AND FEB 28 IF THE RETURN OR TAX PAYMENT IS POSTMARKED BY FEB 28 BUT THE IRS SAYS PAYMENT OF INTEREST IS REQUIRED BY LAW TAXREFUND FRAUD WILL BE STUDIED AT A FEB 10 HEARING OF A HOUSE WAYS AND MEANS SUBCOMMITTEE CHAIRED BY REP PICKLE D TEXAS THE HEARING WILL FOCUS ESPECIALLY ON THE GROWING PROBLEM OF FRAUD STEMMING FROM ELECTRONICALLY FILED RETURNS NEW BUSINESSES IN NEW YORK CITY FACE TOUGH ODDS A CITY REPORT SHOWS ON AVERAGE NEARLY 25 OF THEM ARE NO LONGER ON THE TAX ROLLS AFTER A YEAR AND MORE THAN 50 ARE OUT OF BUSINESS OR NO LONGER DOING BUSINESS IN THE CITY AFTER FIVE YEARS IMPORTANT IRS DATA IS UNAVAILABLE OR UNRELIABLE A CONGRESSIONAL AGENCY SAYS FOR EXAMPLE THE IRS CAN'T EVEN PROVIDE DETAILED INFORMATION ON HOW MUCH IT COLLECTS IN EXCISE AND SOCIAL SECURITY TAXES ACCORDING TO A GENERAL ACCOUNTING OFFICE REPORT THAT IS BECAUSE PAYMENT INFORMATION FOR SOME TYPES OF TAXES IS LUMPED TOGETHER THE WATCHDOG AGENCY SAYS SOCIAL SECURITY AND INDIVIDUAL INCOME TAXES WITHHELD FROM EMPLOYEES ARE COMBINED INTO A SINGLE CATEGORY AS ARE ABOUT 50 DIFFERENT EXCISE TAXES THE REPORT SAYS THE GAO SAYS EXCISE TAXES THAT SHOULD BE DISTRIBUTED TO VARIOUS GOVERNMENT TRUST FUNDS BASED ON ACTUAL IRS COLLECTIONS ARE INSTEAD DISTRIBUTED ON THE BASIS OF TAX ASSESSMENTS NATURALLY ASSESSMENTS EXCEED COLLECTIONS THUS SLOPPY IRS BOOKKEEPING EFFECTIVELY RESULTS IN SUBSIDIES FROM THE GENERAL REVENUE FUND TO TRUST FUNDS THE GAO SAYS THE IRS AGREES WITH SOME RECOMMENDATIONS BUT SAYS MANY REQUIRE COORDINATION WITH OTHER AGENCIES OR LEGISLATIVE CHANGES BRIEFS HOW'S THAT AN IRS LAWYER DESCRIBES THE IRS'S EFFORTS TO MOVE INTO THE ELECTRONIC AGE AS ELECTRONICIZATION A BOOKLET BY TAX LAWYER CONRAD TEITELL ON ESTATE PLANNING AND GIFTS IS TITLED GOD'S WILL IS NOT SUBJECT TO PROBATE BUT YOURS IS 9402020112 940202 RULE OF LAW RICO'S LATEST VICTIM SOCIAL PROTEST BY BRUCE LEDEWITZ IN AN OPINION FOR A UNANIMOUS COURT CHIEF JUSTICE WILLIAM REHNQUIST LAST WEEK HELD IN NOW V SCHEIDLER THAT THE SANCTIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO CAN BE APPLIED AGAINST ANTIABORTION PROTESTERS IN SCHEIDLER THE NATIONAL ORGANIZATION FOR WOMEN AND ABORTION CLINICS SUED THE PROLIFE ACTION NETWORK AND SEVERAL INDIVIDUALS ALLEGING THAT PROLIFE DEMONSTRATORS HAD VIOLATED FEDERAL AND STATE LAW IN THEIR ATTEMPTS TO CLOSE DOWN THE CLINICS THE RICO CLAIM ALLEGED THAT THE DEFENDANTS COMMITTED TWO OR MORE ACTS OF INTERSTATE EXTORTION BY USING FORCE VIOLENCE OR FEAR TO INDUCE THE CLINICS TO GIVE UP THEIR RIGHT TO OPERATE THE DEFENDANTS ARGUED THAT RICO SHOULD NOT APPLY TO AN ESSENTIALLY POLITICAL STRUGGLE BUT SHOULD BE LIMITED TO CRIMES WITH A PROFITGENERATING MOTIVE THE COURT HELD HOWEVER THAT THERE IS NO RICO REQUIREMENT OF ECONOMIC MOTIVE AS A MATTER OF SIMPLE STATUTORY INTERPRETATION THE OPINION WAS OVERLY BROAD THE COURT HAD PREVIOUSLY HELD IN 1961 AND 1965 THAT THE SHERMAN ANTITRUST ACT DOES NOT APPLY TO EFFORTS TO CHANGE LAW EVEN IF DONE BY CONSPIRACY AND WITH AN ANTICOMPETITIVE MOTIVE A SIMILAR APPROACH SHOULD HAVE BEEN USED TO LIMIT RICO IN THIS CASE BUT THE MOST SERIOUS FAILURE IN THE OPINION WAS THE JUSTICES' INABILITY TO APPRECIATE THE POSITIVE ROLE THAT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST HAS PLAYED IN AMERICAN HISTORY IMPLICIT IN THE LEAD OPINION BUT MADE QUITE EXPLICIT IN THE CONCURRENCE BY JUSTICES DAVID SOUTER AND ANTHONY KENNEDY IS THE VIEW THAT SOCIAL PROTEST CAN BE DIVIDED INTO TWO TYPES THAT PROTECTED BY THE FIRST AMENDMENT WHICH CANNOT BE MADE ILLEGAL AT ALL AND THAT NOT PROTECTED BY THE FIRST AMENDMENT WHICH CAN BE PUNISHED QUITE SEVERELY A MOMENT'S REFLECTION SHOWS THAT IN FACT SOCIAL PROTEST HAS NEVER LIMITED ITSELF TO LEGAL FORMS IN THE EARLY 20TH CENTURY LABOR UNIONS OCCUPIED FACTORIES AND REFUSED TO MOVE AT AROUND THE SAME TIME WOMEN'SRIGHTS ADVOCATES CHAINED THEMSELVES TO FENCES AT THE WHITE HOUSE LATER CIVILRIGHTS AND STUDENT PROTESTERS ROUTINELY INVADED BUSINESS AND SCHOOL PREMISES IN MASSIVE SITINS AND TODAY A WIDE VARIETY OF PROTESTERS ROUTINELY CLIMB FENCES AND BREAK DOWN DOORS TO TRY TO STOP POWER PLANTS INCINERATORS AND SO FORTH NONE OF THESE ACTIVITIES HAVE EVER BEEN PROTECTED BY THE FIRST AMENDMENT OBVIOUSLY NO SOCIETY COULD TOLERATE UNRESTRICTED FORCEFUL ENTRY AND TRESPASS BUT JUST AS OBVIOUSLY THESE ILLEGAL BUT ESSENTIALLY PEACEFUL FORMS OF PROTEST HAVE SERVED A VERY IMPORTANT ROLE IN US HISTORY BY DRAMATIZING OPPOSITION TO THE STATUS QUO ILLEGAL PROTEST HAS ALSO CHANNELED ALIENATED COMMUNITIES AWAY FROM VIOLENCE AND INTO THE STYLIZED ACTIONS OF CIVIL DISOBEDIENCE AND THE SITIN THESE FORMS OF ILLEGAL PROTESTS HAVE BEEN MANAGED BY AN UNSTATED BUT CLEAR SOCIAL CONVENTION THAT THE CRIMES COMMITTED ARE NOT THAT SERIOUS IN PRACTICE THE PROTESTERS ARE FORCIBLY REMOVED SPEND SOME TIME IN JAIL AND THE CHARGES ARE IN MOST CASES LATER DROPPED IF THE PROTESTS CONTINUE ACTUAL JAIL SENTENCES ARE SERVED BUT THESE SENTENCES USUALLY AMOUNT TO ONLY A FEW DAYS PROSECUTORS AND STATE JUDGES UNDERSTAND THAT THEIR ROLE IS TO MINIMIZE AND CONTROL THE DISRUPTIONS NOT TO END THE PROTESTS AND NOT TO DESTROY THE PROTESTING ORGANIZATION THE COURT'S SCHEIDLER DECISION PUTS AN END TO THIS ACCOMMODATION UNDER THE COURT'S OPINION TWO ACTS OF FORCEFUL ENTRY INTENDED TO INTERFERE WITH THE RIGHTS OF BUSINESS CAN BE CONSIDERED EXTORTION FOR PURPOSES OF THE RICO ACT EVEN IF THE CONTEXT IS OBVIOUSLY ONE OF POLITICAL STRUGGLE RATHER THAN ECONOMICALLY MOTIVATED CRIMINAL ACTIVITY THUS IF ABORTION DEMONSTRATORS TWICE PUSH THEIR WAY INTO A CLINIC'S WAITING ROOM OCCUPY IT BLOCK THE HALLWAYS AND REFUSE TO MOVE THE DEMONSTRATORS ARE ALL SUBJECT TO RICO THEY MAY BE JAILED FOR UP TO 20 YEARS THEY CAN BE MADE TO PAY TREBLE DAMAGES AND/OR PUNITIVE DAMAGES THE ORGANIZATION THAT SPONSORED THEM AND ANYONE WHO ENCOURAGED THEM ARE SUBJECT TO THE SAME SEVERE PENALTIES IT IS CLEAR THAT UNDER THESE CIRCUMSTANCES ONLY THE HARDIEST SOULS WILL ENGAGE IN SITINS ORGANIZATIONS LIKE GREENPEACE THAT ROUTINELY ENGAGE IN SUCH ACTIVITY ARE NO DOUBT SERIOUSLY RECONSIDERING THEIR TACTICS IT IS TRUE THAT EVEN UNDER THE SCHEIDLER OPINION THE PROTESTER WILL EVENTUALLY BE ABLE TO ARGUE TO A CIVIL OR CRIMINAL JURY THAT THE PROTEST ACTIVITY DID NOT AMOUNT TO EXTORTION BECAUSE THERE WAS INSUFFICIENT FORCE OR BECAUSE OTHERS PRESENT AT THE PROTEST WERE NOT REASONABLY PUT IN FEAR BY THE PROTEST SOMETIMES THEY WILL WIN SUCH ARGUMENTS BUT THE PROTECTION OF THE JURY THOUGH IMPORTANT DOES NOT LESSEN SCHEIDLER'S THREAT TO THE SITIN IF THE REALISTIC POTENTIAL PUNISHMENT FOR A SITIN IS A DAY OR TWO IN JAIL MANY PEOPLE WILL ENGAGE IN THE PRACTICE IF THE STAKES ARE INSTEAD A JURY TRIAL A SUBSTANTIAL FINE 20 YEARS IN JAIL AND CIVIL DAMAGES FEW PEOPLE WILL SIT IN IT IS ALSO TRUE THAT CONCURRING JUSTICES SOUTER AND KENNEDY ARE AWARE THAT THE SCHEIDLER DECISION THREATENS SOCIAL PROTEST JUSTICE SOUTER INVOKED A 1982 CASE NAACP V CLAIBORNE HARDWARE CO TO REMIND LOWER COURT JUDGES TO BE SENSITIVE TO FREESPEECH VALUES IN TRYING RICO CASES CLAIBORNE HELD THAT THE NAACP COULD NOT BE LIABLE FOR ORGANIZING A CIVILRIGHTS BOYCOTT OF LOCAL BUSINESSES EVEN THOUGH BOYCOTTS BY ECONOMIC COMPETITORS ARE ACTIONABLE UNFORTUNATELY AS JUSTICE SOUTER NOTES CASES LIKE CLAIBORNE PROTECT SOCIAL PROTEST ONLY TO THE EXTENT THAT THE ACTIONS TAKEN TURN OUT TO BE FULLY PROTECTED FIRST AMENDMENT ACTIVITY THE SITIN IS NOT PROTECTED BY THE FIRST AMENDMENT NOR SHOULD IT BE PEOPLE CANNOT BE ALLOWED FREELY TO INVADE THE PROPERTY OF OTHERS THAT DOES NOT MEAN HOWEVER THAT WE SHOULD TRY TO STAMP OUT SITINS COMPLETELY THE SITIN SHOULD BE DISCOURAGED BY THE LAW OF TRESPASS IT SHOULD NOT BE SUBJECT TO FELONY AND TREBLEDAMAGE TREATMENT AS RICO WOULD ALLOW NO DOUBT THERE ARE MANY WHO APPLAUD THE COURT'S DECISION IN SCHEIDLER SOME DO SO BECAUSE THEY SUPPORT ABORTION RIGHTS AND CONSIDER ANTIABORTION PROTESTERS TO BE TERRORISTS SOME DO SO BECAUSE THEY SUPPORT PROPERTY RIGHTS AND SEE NO REASON WHY THE LAW SHOULD EVER BE VIOLATED THESE VIEWS ARE SHORTSIGHTED RICO WAS NEVER NEEDED TO COMBAT TRULY VIOLENT PROTEST MURDER ASSAULT AND ARSON ALREADY CARRY SEVERE STATE AND FEDERAL PENALTIES RICO LAWSUITS WILL NOT BE AIMED AT THEM RATHER THEY WILL BE AIMED AT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST FIRST ABORTION CLINICS WILL USE RICO TO DEFEND THEMSELVES AGAINST PROTEST EVENTUALLY POWERFUL ECONOMIC INTERESTS MAY DO SO PROTEST WILL NOT END BUT IT WILL BECOME LESS OPEN AND MORE SECRETIVE LESS PEACEFUL AND MORE VIOLENT LESS HOPEFUL AND MORE BITTER MR LEDEWITZ IS A PROFESSOR OF LAW AT DUQUESNE UNIVERSITY IN PITTSBURGH 9402020111 940202 BUSINESS BRIEF SOUTHERN UNION CO COMPANY PAYS 400 MILLION FOR PROPERTIES OPERATIONS SOUTHERN UNION CO SAID IT PAID ABOUT 400 MILLION TO ACQUIRE NATURAL GAS PROPERTIES AND OPERATIONS FROM WESTERN RESOURCES INC SOUTHERN UNION'S PURCHASE OF THE PROPERTIES AND OPERATIONS IN WESTERN AND CENTRAL MISSOURI WAS FIRST ANNOUNCED IN JULY 1993 WITH THE ACQUISITION SOUTHERN UNION A NATURALGAS DISTRIBUTION COMPANY BASED IN AUSTIN TEXAS GAINED APPROXIMATELY 460000 CUSTOMERS NEARLY DOUBLING ITS CUSTOMER BASE THE COMPANY SAID IT FUNDED THE ACQUISITION THROUGH A RECENT COMMON STOCK OFFERING AND SALE OF SENIOR NOTES WESTERN RESOURCES A KANSAS CITY MO UTILITY SAID IT WOULD USE THE PROCEEDS TO LOWER LONGTERM AND SHORTTERM DEBT 9402020110 940202 FOREIGN EXCHANGE DOLLAR FALLS AGAINST MAJOR CURRENCIES ON CONCERN OVER US RATES AND TRADE BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR TUMBLED TO NEW LOWS FOR THIS YEAR AGAINST THE YEN ON FRESH CONCERNS OVER THE FUTURE DIRECTION OF US INTEREST RATES AND OVER STALLED TRADE NEGOTIATIONS WITH JAPAN THE DOLLAR FELL HEAVILY AGAINST MOST OTHER MAJOR CURRENCIES BUT RECOVERED SOME LOST GROUND ON PROMISING NEW US ECONOMIC DATA AND A SPATE OF SHORTCOVERING AND BARGAINHUNTING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17320 MARKS DOWN FROM 17345 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10770 YEN DOWN FROM 10870 YEN STERLING WAS TRADING AT 15010 DOWN FROM 15060 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10820 YEN AND AT 17336 MARKS THE SURPRISE RESIGNATION OF DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE YESTERDAY ROUSED SPECULATION THAT US INTEREST RATES LONG THOUGHT TO BE HEADED FOR HIGHER GROUND WILL STAY FLAT THE DEPARTURE OF MULLINS CONSIDERED AN ANTIINFLATION HAWK OPENS THE WAY FOR PRESIDENT CLINTON TO APPOINT AN INFLATION DOVE AS HIS SUCCESSOR THE MOVE ALSO COUNTERED SOMEWHAT WARNINGS ON MONDAY BY ALAN GREENSPAN THE FED'S CHAIRMAN THAT SHORTTERM US RATES WILL MOVE HIGHER EVENTUALLY IN ORDER TO PREVENT ANY RETURN OF INFLATION MR MULLINS WHO WILL RESIGN FEB 14 SAID HE WON'T ATTEND THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE TOMORROW AND FRIDAY TRADERS SAID THAT MAY DIMINISH THE LIKELIHOOD OF A PANEL VOTE IN FAVOR OF HIGHER RATES AT THIS WEEK'S MEETING IN ADDITION MR MULLINS' LEAVETAKING COINCIDES WITH THE DEPARTURE FEB 10 OF FEDERAL RESERVE GOVERNOR WAYNE ANGELL A FAR MORE RESOLUTE ANTIINFLATION HAWK YOU HAVE TWO PEOPLE THAT HISTORICALLY HAVE BEEN INFLATION FIGHTERS LEAVING AT THE SAME TIME SAID ALAN LESLIE CHIEF ECONOMIST FOR DISCOUNT CORP OF NEW YORK THEY WERE BOTH APPOINTED BY MORE CONSERVATIVE ADMINISTRATIONS AND EXPECTATIONS ARE THAT CLINTON WILL APPOINT MORE GROWTHORIENTED PEOPLE AS OPPOSED TO ANTIINFLATION PEOPLE WHICH MEANS LOWER INTEREST RATES AND A LOWER DOLLAR HE SAID THE MULLINS ANNOUNCEMENT BROUGHT THE DOLLAR TO ITS INTRADAY LOW OF 10755 YEN THE LOWEST LEVEL SINCE DEC 8 TRADERS ALSO SAID THE SLIDE WAS PUSHED ALONG BY CONCERNS THAT US TRADE REPRESENTATIVE MICKEY KANTOR'S TRIP TO JAPAN TO FURTHER TRADE NEGOTIATIONS WILL BE TOO LITTLE TOO LATE THE DOLLARYEN IS REACTING TO MICKEY KANTOR SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK THERE ARE WORRIES THAT NOTHING WILL COME OF HIS VISIT INDEED JAPAN IS UNDER THE GUN TO PRODUCE A VIABLE TRADE AGREEMENT PRIOR TO PRIME MINISTER MORIHIRO HOSOKAWA'S MEETING WITH MR CLINTON FEB 11 AND TRADERS FEAR THAT LACK OF AN AGREEMENT WILL PROMPT MORE US PRESSURE FOR A STRONG YEN MEANWHILE THE DOLLAR MADE A PARTIAL RECOVERY FROM ITS FALL AGAINST THE MARK ON A COMBINATION OF SHORTCOVERING AND PROMISING US ECONOMIC DATA THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S JANUARY REPORT SHOWED ITS OVERALL INDEX OF BUSINESS ACTIVITY ROSE TO 577 FROM 571 IN DECEMBER ECONOMISTS HAD PREDICTED A DECLINE TO 56 9402020109 940202 LIFT THE EMBARGO AGAINST VIETNAM HELP OLD ALLIES BY JAMES WEBB PRESIDENT CLINTON IS TAKING POLITICAL SOUNDINGS ON WHETHER HE SHOULD LIFT THE TRADE EMBARGO AGAINST VIETNAM ALTHOUGH I FOUGHT AND WAS WOUNDED IN THE VIETNAM WAR AND FOR YEARS OPPOSED LIFTING THE EMBARGO I NOW BELIEVE WITH ONE IMPORTANT CAVEAT THAT IT IS IN THE INTEREST OF BOTH OUR PEOPLES AS WELL AS OF AMERICA'S FUTURE ROLE IN ASIA TO MOVE FORWARD OVER THE PAST THREE YEARS I HAVE SPENT A GREAT DEAL OF TIME TRAVELING THROUGHOUT VIETNAM IT HAS NOT ALWAYS BEEN PLEASANT THE COUNTRY'S INFRASTRUCTURE IS BADLY DETERIORATED AND TO PUT IT MILDLY ITS OFFICIALS HAVE NOT ALWAYS WELCOMED ME BUT CHANGES HAVE OCCURRED ALSO THE US EMBARGO LOST MUCH OF ITS ECONOMIC LEVERAGE MORE THAN A YEAR AGO WHEN JAPAN ENDED ITS OWN IRONICALLY THE STRONGEST INVESTORS IN VIETNAM ARE ANTICOMMUNIST COUNTRIES JAPAN SOUTH KOREA TAIWAN SINGAPORE AND HONG KONG PROBABLY THE UGLIEST NEW BUILDING IN DOWNTOWN SAIGON IS A MASSIVE GREEN GLASS STRUCTURE ERECTED BY THE SOUTH KOREAN TRADE MINISTRY IN ADDITION TO THE EMBARGO'S HAVING LOST ITS ORIGINAL PURPOSE TWO VITAL CONCERNS DICTATE THAT WE NOW MOVE CAREFULLY BUT SURELY TOWARD NORMALIZATION WITH VIETNAM THE FIRST REGARDS OUR DIMINISHED PRESENCE IN ASIA AT A TIME WHEN CHINA IS GROWING EVER STRONGER AND MORE DANGEROUS VIETNAM RETAINS A HISTORICAL ANTIPATHY TO CHINA AS CHINA'S ECONOMIC AND POLITICAL MIGHT EXPANDS ONE CAN FORESEE FUTURE CIRCUMSTANCES WHERE VIETNAMESE AND AMERICAN INTERESTS COULD INTERSECT THE SECOND RELATES TO AN UNFINISHED OBLIGATION TO THE VIETNAMESE WHO STOOD WITH US DURING THE WAR AND WHO CONTINUE TO SUFFER SECONDCLASS CITIZENSHIP AS A RESULT WE ARE LITERALLY THE ONLY PEOPLE ON EARTH WHO RETAIN MEMORIES OF THE BRAVE AND CARING ALLIES WHO WERE HUMILIATED AFTER OUR WITHDRAWAL MOST OF WHOM WILL NEVER HAVE A FULL LIFE WITHOUT OUR REINVOLVEMENT IT WOULD BE SHAMEFUL FOR OUR COUNTRY TO BEGIN A NEW RELATIONSHIP WITHOUT PROTECTING THOSE WHO HAVE SUFFERED SO GREATLY AS A RESULT OF OUR OLD RELATIONSHIP LIFTING THE EMBARGO WILL BE STRONGLY RESISTED BY MANY INCLUDING SEVERAL WELLINTENTIONED VETERANS GROUPS THAT REMAIN CONCERNED OVER THE LACK OF FULL ACCOUNTING OF THOSE STILL LISTED AS MISSING IN ACTION FROM THE WAR THE POW DILEMMA IS ONE OF THE GREAT TRAGEDIES OF OUR TIME ITS ROOTS WERE IN HANOI'S UNPRECEDENTED USE OF POWS AS NEGOTIATING PEARLS WHICH TURNED POWS INTO ANONYMOUS HOSTAGES AND IN THE AMERICAN GOVERNMENT'S FAILURE TO OBTAIN A BYNAME LISTING OF THOSE WHO WERE BEING HELD IN CAPTIVITY PRIOR TO THE SIGNING OF THE PARIS PEACE ACCORDS WE KNEW FROM THE FRENCH WAR IN INDOCHINA THAT SUCH AN ACCOUNTING SHOULD HAVE BEEN REQUIRED LACKING SUCH A LIST WE HAVE BEEN OPERATING IN THE DARK EVER SINCE THE PRESENT POW SEARCH INSIDE VIETNAM HAS BEEN WELL EXECUTED BY BOTH SIDES AND THE VIETNAMESE GOVERNMENT HAS FULLY COOPERATED IN THIS EFFORT BUT IN TERMS OF SOLVING THE ISSUE OF WHETHER AMERICANS WERE HELD INSIDE VIETNAM AFTER THE WAR IT APPROACHES FARCE TENS OF MILLIONS OF DOLLARS HAVE BEEN SPENT IN SEARCHING REMOTE JUNGLE AREAS WHERE CRASHES OCCURRED A QUARTERCENTURY AGO WHEN THE ANSWERS IF AVAILABLE AT ALL CAN BE FOUND ONLY IN COMPARTMENTED INTELLIGENCE DATA KEPT BY THE US VIETNAM CHINA AND RUSSIA FOR THIS REASON IT ALSO HAS BEEN FRUITLESS FOR OUR POLITICIANS TO BERATE VIETNAMESE DIPLOMATS FOR NOT PRODUCING INFORMATION THEY WOULD NO MORE HAVE SUCH SENSITIVE INFORMATION THAN WOULD OUR DIPLOMATS LOOKING BACK THE SORT OF PRESSURE THAT HAS BEEN BROUGHT ON THE POW ISSUE BY WELLMEANING AMERICANS HAS SURELY BEEN COUNTERPRODUCTIVE IF THE VIETNAMESE WERE INDEED HOLDING LIVE AMERICANS AFTER THE WAR THE GREATEST DETERRENT TO RELEASING THEM AND THE GREATEST DANGER TO THEIR SURVIVAL WOULD BE LOUD ACCUSATIONS AND THREATS ACCUSATIONS INVOLVE A LOSS OF FACE QUIET NEGOTIATION IS THE ASIAN WAY MUCH OF THE EMOTION OVER THE POW ISSUE STEMS FROM THE REALITY THAT IT PROVIDES ONE OF THE FEW FOCAL POINTS FOR THOSE WHO KNOW WE SHOULD HAVE DEFEATED THE COMMUNISTS AND WHO REMAIN RIGHTFULLY ANGRY AT THEIR BLATANT VIOLATIONS OF THE 1973 PARIS PEACE ACCORDS THE REPRESSION THEY BROUGHT AFTER THEIR 1975 TAKEOVER MORE SOUTH VIETNAMESE DIED IN REEDUCATION CAMPS AFTER THE WAR THAN AMERICANS DID DURING THE WAR AND THE FAILURE OF THOSE WHO OPPOSED THE WAR IN THIS COUNTRY TO ACKNOWLEDGE THAT THEY ERRED IN THEIR JUDGMENT OF COMMUNIST INTENTIONS THE BEST WAY TO ADDRESS THOSE HISTORICAL INEQUITIES IS TO REMEMBER WHAT BROUGHT US INTO SOUTH VIETNAM IN THE FIRST PLACE AND TO PLEDGE AN EFFORT TO ASSIST THE PEOPLE OF VIETNAM AS THEY REACH TOWARD ECONOMIC GROWTH AND POLITICAL LIBERALIZATION THEREFORE I HAVE BEEN PROPOSING FOR MORE THAN A YEAR THAT OUR GOVERNMENT DO THE FOLLOWING LIFT THE TRADE EMBARGO IMMEDIATELY WITH THE VIETNAMESE GOVERNMENT CLEARLY STATING THAT ALL VIETNAMESE REGARDLESS OF THEIR WARTIME AFFILIATION HAVE THE RIGHT TO SHARE FULLY IN THE BENEFITS OF RENEWED ECONOMIC AND POLITICAL TIES WITH THE US AS VIETNAM'S POLICY OF EQUAL TREATMENT BECOMES MEASURABLE AND CLEAR AND AS OTHER ISSUES SUCH AS POLITICAL PRISONERS AND POW/MIAS ARE ACCEPTABLY RESOLVED RECIPROCATE BY ESTABLISHING FULL DIPLOMATIC RELATIONS AFTER NORMALIZATION CONSIDER GRANTING MOSTFAVOREDNATION TRADING STATUS TO VIETNAM BASED ON VIETNAM'S CONTINUED COMMITMENT TO ALLOWING ALL CITIZENS EQUAL ACCESS TO THE BENEFITS OF THE NEW RELATIONSHIP WITH THE US IF THIS POLICY IS ADOPTED AND PURSUED THE RESULT COULD BE BETTER RELATIONS FOR THE US IN ALL OF ASIA A BASIS FOR THE VIETNAMESE TO BEGIN A NEW ERA REMOVED FROM THE HATREDS AND RETRIBUTIONS OF THE PAST AND IN TIME A STRONG WESTERNORIENTED ALLY WITH A MUTUAL INTEREST IN COUNTERBALANCING THE EVERBURGEONING STRENGTH OF CHINA MR WEBB SERVED AS ASSISTANT SECRETARY OF DEFENSE AND SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION 9402020108 940202 BUSINESS BRIEF INTERREGIONAL FINANCIAL GROUP INC QUARTERLY PROFIT ROSE 34 BROKERAGE UNITS' GAINS CITED INTERREGIONAL FINANCIAL GROUP INC ITS BROKERAGE OPERATIONS BOOSTED BY THE STOCK MARKET'S CONTINUED STRENGTH REPORTED A 34 INCREASE IN FOURTHQUARTER EARNINGS ON A 12 UPTURN IN REVENUE NET FOR THE PARENT OF REGIONAL BROKERAGE FIRMS DAIN BOSWORTH INC AND RAUSCHER PIERCE REFSNES INC JUMPED TO 128 MILLION OR 151 A SHARE FROM 95 MILLION OR 111 A SHARE REVENUE ROSE TO 1343 MILLION FROM 120 MILLION EXCEPTIONAL MARKETS HELPED THE HOLDING COMPANY TO A RECORD EARNINGS YEAR IRVING WEISER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN MINNEAPOLIS BUT HE ALSO CITED PRODUCTIVITY GAINS AND COSTCONTROL EFFORTS 9402020107 940202 LETTERS TO THE EDITOR FASB SIMPLIFIES STATEMENT 114 YOUR JAN 27 ARTICLE THAT DISCUSSED THE FASB'S MEETING ON JAN 26 MAY HAVE CONFUSED YOUR READERS THE BOARD DISCUSSED SEVERAL REQUESTS TO DELAY THE EFFECTIVE DATE OF FASB STATEMENT 114 ACCOUNTING BY CREDITORS FOR IMPAIRMENT OF A LOAN INSTEAD OF DELAYING THE EFFECTIVE DATE THE BOARD DECIDED TO SIMPLIFY THE STATEMENT SO THAT IT WOULD BE EASIER FOR CREDITORS TO IMPLEMENT WE EXPECT TO ISSUE A PROPOSAL WITHIN THE NEXT FEW WEEKS THAT IN FINAL FORM WOULD ELIMINATE THE PROVISION THAT DESCRIBES HOW A CREDITOR SHOULD RECOGNIZE INCOME ON AN IMPAIRED LOAN THE SIMPLIFICATION WOULD NOT CHANGE THE BASIC PROVISION OF STATEMENT 114 AND GENERALLY WOULD AFFECT ONLY THE CLASSIFICATION OF INCOME OR EXPENSE ON IMPAIRED LOANS NOT THE TOTAL AMOUNT OF INCOME OR EXPENSE RECOGNIZED 9402020106 940202 LEISURE & ARTS THE MOBILE GUIDE RETRO MAOIST CUISINE IS HIT IN CHINA BY CATHERINE SAMPSON OUTSIDE THE NEONLIT ENTRANCE TO FATTY'S RESTAURANT A POSTER INFORMS DINERS THAT A 15 DISCOUNT IS OFFERED TO MEN WHO WEIGH MORE THAN 207 POUNDS AND TO WOMEN OF MORE THAN 183 POUNDS INSIDE THE TABLES ARE FULL A PLUMP 23YEAROLD ENTREPRENEUR NAMED ZHANG WEIPING TAKES HIS TURN ON THE BATHROOM SCALE NEAR THE DOOR HIS RATHER SLIMMER COMPANIONS SHRIEK WITH DELIGHT AS HE WEIGHS IN AT 221 POUNDS THIS IS THE FIRST TIME I'VE WEIGHED MYSELF IN A WHILE MR ZHANG BLUSHES THE WEIGHTY DISCOUNTS AREN'T JUST A GIMMICK SAYS MANAGER ZHANG YAN HIMSELF ALL OF 209 POUNDS THEY'RE JUST ONE WEAPON IN THE BATTLE FOR CUSTOMERS IN THE MARKET ECONOMY YOU HAVE TO DO SOMETHING SPECIAL TO ATTRACT CUSTOMERS HE SAYS THERE ARE TOO MANY RESTAURANTS AND COMPETITION IS FIERCE SO FIERCE IN FACT THAT BEIJING'S RESTAURATEURS ARE DREAMING UP EVER MORE NOVEL CONCEPTS TO ATTRACT CUSTOMERS THE REMEMBERING BITTERNESS THINKING OF SWEET THINGS RESTAURANT WHICH OPENED IN OCTOBER IN XIDAN BEIJING'S BUSIEST SHOPPING AREA USED TO BE A KINDERGARTEN NOW ITS MENU BASED ON THE HARDSHIP FOOD OF THE DARKEST DAYS OF THE CULTURAL REVOLUTION IS PACKING IN CROWDS OF DINERS ITS NAME HAS A HISTORY DURING THE CULTURAL REVOLUTION YOUNG PEOPLE SENT TO THE COUNTRYSIDE WOULD BE EXPECTED TO ATTEND MEALS ONCE OR TWICE A YEAR KNOWN AS REMEMBERING BITTERNESS THINKING OF SWEET THINGS THE FOOD WAS ALMOST INEDIBLE BUT NOBODY DARED TO SAY SO AND WE HAD TO SHOUT OUT LOUD DOWN WITH THE LANDLORDS' DURING THE MEAL RECALLS A MIDDLEAGED CIVIL SERVANT MRS WANG THAT IS EXACTLY THE SORT OF MEMORY MANAGER DUAN YUNSONG AIMED TO CONJURE UP WHEN HE NAMED THE RESTAURANT THOUGH HE HIMSELF AT 23 IS TOO YOUNG TO SHARE IN THE NOSTALGIA THE FIRST THOUGHT PEOPLE HAVE WHEN THEY HEAR THE NAME MUST BE THAT IT SOUNDS INTERESTING AND THEY SHOULD GIVE IT A GO SAYS DEPUTY MANAGER ZHANG SHUSEN NEVER MIND WHETHER OR NOT IT TURNS OUT TO BE ANY GOOD THE CONCEPT'S WORKING DINERS MUST QUEUE FOR A TABLE AT REMEMBERING BITTERNESS ONCE THROUGH THE DOOR OF THE PICTURESQUE COURTYARD THEY STEP BACK IN TIME CORN COBS HANG FROM THE EAVES INCENSE BURNS IN FRONT OF A STATUE OF THE GOD OF WEALTH AND THE RESTAURANT EVEN OFFERS FREE SHOESHINES FIRSTTIME DINERS MAY ARRIVE EXPECTING STARVATION RATIONS BUT IN FACT THE FOOD IS QUITE TASTY WE CAN'T REALLY EXPECT PEOPLE TO EAT HUSKS EXPLAINS THE RESTAURANT'S ADVISER LIU ZHENGJING THE FOOD IS NORTHERN HOME COOKING OFFERING WILLOW LEAVES WILD GREENS CORN BREAD AND INSECTS YES INSECTS THERE ARE SAUTEED CATERPILLARS STILL FAT AND CREAMY WHITE ON THE PLATE IF THESE DO NOT APPEAL THERE'S THE CRISP BLACKENED SHELL OF A DEEPFRIED LOCUST WHICH TASTES OF NOTHING MUCH IN PARTICULAR A PLATE OF SILKWORM CHRYSALIDES SCORPIONS OR CICADAS FILLS ANY GAPS THEY ARE FULL OF PROTEIN EXPLAINS ONE ENTHUSIASTIC AND RATHER DRUNK DINER POPPING A CATERPILLAR IN HIS MOUTH AND THEY ARE NOT POLLUTED BY ANYTHING NOR ARE THEY TRADITIONAL NORTHERN FARE WE ATE GRASSHOPPERS DURING TIMES OF FAMINE SAYS MR LIU BUT PEOPLE ONLY STARTED EATING THE OTHER INSECTS RECENTLY IT'S A SOUTHERN HABIT EATING INSECTS SNIFFS ONE MIDDLEAGED MAN EATING SUCH CREEPY CRAWLIES SEEMS TO BE A FASHIONABLE SYMBOL OF MACHISMO AMPLY DEMONSTRATED BY A TABLE OF POLICEMEN WHO TUCK INTO A SELECTION WHILE POURING GLASSES OF ERGUOTOU THE CLEAR GRAIN LIQUOR SO POPULAR AMONG BEIJING'S SERIOUS DRINKERS ONCE FINISHED RESIDENTS OF REMEMBERING BITTERNESS'S XIDAN ARE OFFERED A FREE RIDE HOME IN A RESTAURANTOWNED PEDICAB WHICH IS DECORATED WITH BUNCHES OF PLASTIC GRAPES AS WELL AS COPIOUS ADVERTISING IN THE NORTH OF THE CITY A BIRDLIKE 64YEAROLD PEASANT WOMAN WITH GRAY HAIR HAS ALSO DISCOVERED THAT HISTORY MAKES GOOD MARKETING TANG RUIREN HAS SET UP A RESTAURANT ON THE STRENGTH OF ONE PHOTOGRAPH TAKEN MORE THAN 30 YEARS AGO WHEN CHAIRMAN MAO VISITED HIS HOMETOWN SHAOSHAN IN HUNAN PROVINCE MRS TANG WAS ONE OF MANY PEOPLE WORKING THE NEARBY FIELDS BUT SHE HAD THE LUCK TO BE PHOTOGRAPHED STANDING WITH A FEW OTHERS HER SON IN HER ARMS LITTLE MORE THAN THREE FEET FROM THE GREAT HELMSMAN HIMSELF NOT LONG AFTERWARD SHE SET UP THE MAO FAMILY RESTAURANT IN SHAOSHAN NOW SHE HAS OPENED A BRANCH IN BEIJING'S DONGCHENG DISTRICT THE FACADE IS OF WOODEN LOGS IN THE STYLE OF MAO'S BIRTHPLACE AND A GIANT COPY OF THE FAMOUS PHOTOGRAPH IS GIVEN PRIDE OF PLACE IN THE DINING ROOM MAO WOULD TURN IN HIS CRYSTAL SARCOPHAGUS IF HE COULD SEE THE REST SEVERAL PRIVATE BANQUET ROOMS A KARAOKE ROOM COMPLETE WITH FLASHING DISCO LIGHTS A BAR AN ILLUMINATED DANCE FLOOR AND DRINKING BOOTHS LIT BY A SOFT RED GLOW I AM NOT A CAPITALIST I DON'T DO THIS TO MAKE MONEY PROTESTS MRS TANG AS SHE EATS AN EVENING BOWL OF RICE AND PLATE OF RED CHILIS THERE ARE LOTS OF VETERAN REVOLUTIONARIES AND THEIR CHILDREN WHO HAVEN'T BEEN TO SHAOSHAN THEY DON'T KNOW WHETHER THE FOOD CHAIRMAN MAO ATE WAS GOOD WHETHER THE WINE HE DRANK WAS GOOD SO I'VE BROUGHT THEM TO BEIJING IN FACT SHE IS MAKING ENOUGH TO PAY THOUSANDS OF YUAN IN TAXES EVERY MONTH AND TO MAKE DONATIONS TO THE COMMUNIST PARTY IN RETURN FOR WHICH THE COMMUNIST YOUTH LEAGUE AND OTHERS HEARTILY ENDORSE HER RESTAURANT IN THE RESTAURANT'S DRAFTY PUBLIC DINING ROOM THE FOOD AT LEAST IS HOT EMPLOYING THE CHILIS SO BELOVED OF HUNAN PROVINCE WHICH ARE REPUTED TO BREED FEARLESS REVOLUTIONARIES THE MOST POPULAR DISHES ARE THOSE WHICH MAO IS SAID TO HAVE ENJOYED ONE IS HUOBEIYU AN ANCHOVYLIKE FISH THAT LIVED IN THE POND OUTSIDE MAO'S HOUSE THEY'RE COOKED DRY THEN SMOKED AND FRIED WITH CHILI ANOTHER IS HONGSHAOROU GREAT LUMPS OF FAT BACON IN A RICH RED SAUCE DESPITE SUCH TEMPTING FARE CYNICS BELIEVE THAT THE MAO FAMILY RESTAURANT'S SUCCESS OWES LESS TO THE POPULARITY OF MAO THAN TO ITS SHEER NOVELTY VALUE RIGHT NOW IN BEIJING SAYS ONE PATRON YOU COULD OPEN A RESTAURANT CALLED HITLER'S AND PEOPLE WOULD GO TO IT MS SAMPSON IS A JOURNALIST IN BEIJING 9402020105 940202 LETTERS TO THE EDITOR QUESTIONS REMAIN ABOUT KING'S MURDER IN A DEC 27 MARKETPLACE ARTICLE ON AN ABC NEWS BROADCAST OF A NEW ALLEGATION ABOUT A CONSPIRACY TO KILL MARTIN LUTHER KING I WAS DESCRIBED AS A HOLLYWOOD PRODUCER WHO HELPED REV THE ENGINE BY SHOPPING THE THEORY TO 60 MINUTES THIS WAS AN UNFAIR CHARACTERIZATION ALL I DID WAS ASK A FORMER COLLEAGUE AT THE CBS NEWSMAGAZINE TO INVESTIGATE THE THEORY TO SEE WHETHER OR NOT IT WAS TRUE IF THE STORY HAD CREDIBILITY 60 MINUTES AND I MIGHT BOTH HAVE A STORY IF IT DIDN'T I WOULD HAVE NOTHING NOT EVEN HOLLYWOOD DARES TO MAKE A HISTORICAL FILM FROM A NONSTORY THE STORY OF DR KING'S MURDER STILL CONTAINS GIANT QUESTION MARKS I WOULD THINK ANY NEWS ORGANIZATION WORTH ITS REPUTATION WOULD TRY TO FIND OUT WHAT HAPPENED TO HIM IF MORE REPORTORIAL ENERGY WERE EXPENDED IN THAT DIRECTION INSTEAD OF REPORTING ON THE BEHAVIOR OF OTHER NEWS ORGANIZATIONS AND PRODUCERS SUCH AS ME MAYBE HISTORY WOULD BE THE BENEFICIARY 9402020104 940202 YIELDS ON CDS END WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 271 FROM 272 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 442 FROM 444 THE WILMINGTON DEL INFORMATION SERVICE SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 277 FROM 276 ACCORDING TO THE SURVEY ON FIVEYEAR JUMBOS THE AVERAGE DECLINED TO 461 FROM 463 BANXQUOTE REPORTED THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS FELL TO 302 FROM 310 ACCORDING TO THE BANXQUOTE SURVEY ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD REMAINED AT 448 THE SURVEY SAID 9402020103 940202 REVIEW & OUTLOOK EDITORIAL HOSOKAWA'S VICTORY OUT OF THE RUBBLE OF WORLD WAR II THE JAPANESE PEOPLE WORKED AND SACRIFICED FOR 45 YEARS TO BUILD THE WORLD'S SECONDRICHEST NATION THEY THEN TURNED AROUND LAST WEEKEND AND THUMBED THEIR NOSES AT THE WHOLE CLASS OF POLITICIANS WHO'D PRESIDED OVER THIS ECONOMIC MIRACLE PRIME MINISTER MORIHIRO HOSOKAWA A FUNCTIONAL NOBODY UNTIL A FEW MONTHS AGO SUDDENLY IS MORE POPULAR THAN MADONNA THE TOKYO STOCK MARKET JUMPED A STUNNING 78 ON THE FIRST TRADING DAY AFTER HIS REFORM COMPROMISE PASSED THESE EVENTS ARE SOMETHING THAT THE REST OF ASIA WILL BE INSPECTING CLOSELY FOR THEY BEAR DIRECTLY ON THE QUESTION OF THE HOUR CAN GROWTH ECONOMICS BE DIVORCED FROM DEMOCRATIZATION THE SHORT ANSWER FROM TOKYO SEEMS TO BE A RESOUNDING NEGATIVE THE LONGER ANSWER REQUIRES AN EXCURSION INTO ECONOMIC HISTORY WITH THE RELEVANT PRECEDENT BEING ANOTHER LAND OF INDUSTRIOUS SOULS BRITAIN IN THE 19TH CENTURY LIKE JAPAN UNTIL LAST SATURDAY THE BRITISH ELITE HAD TIED ITSELF TO INTEREST GROUPS WHOSE IDEA OF THE PUBLIC GOOD WAS INCREASINGLY AT ODDS WITH THE THINKING OF THE TOWNS AND EMERGING COMMERCIAL CLASSES WHATEVER THEIR OTHER MERITS THE EXISTING BATCH OF POLITICIANS HAD BECOME A STUMBLING BLOCK TO FURTHER GROWTH AND IT TOOK A MAJOR REVAMPING OF THE VOTING SYSTEM TO MOVE THEM OUT OF THE WAY THE PARALLEL TO MR HOSOKAWA'S REJIGGERING OF JAPAN'S ELECTORAL SYSTEM WAS THE BRITISH PARLIAMENT'S GREAT REFORM OF 1832 IT DOUBLED AT A STROKE THE NUMBER OF URBANITES ENTITLED TO VOTE AND DID AWAY WITH THE NOTORIOUS ROTTEN BOROUGHS WHICH HAD ALLOWED MANY A RURAL GRANDEE TO NOMINATE AND ELECT HIS OWN MEMBER OF PARLIAMENT ONE LORD OF THE MANOR REGULARLY SENT HIS RETAINERS OUT IN A ROWBOAT TO SELECT A MEMBER FOR A DISTRICT THAT HAD BEEN SUBMERGED FOR CENTURIES IN SIMILAR FASHION MR HOSOKAWA'S REFORMS ARE AIMED AT REDUCING THE ELECTORAL CLOUT OF JAPAN'S RICE FARMERS WHO EFFECTIVELY ENJOY THREE TIMES AS MUCH REPRESENTATION IN THE DIET AS THE AVERAGE CITY DWELLER THE REFORMS ARE ALSO SUPPOSED TO CLIP THE WINGS OF THE SHADY FUNDRAISERS WHO HAVE LONG FINANCED THE CAMPAIGNS OF THE LIBERAL DEMOCRATIC PARTY EVEN THOUGH IT WAS ONLY A WATEREDDOWN VERSION THAT FINALLY SQUEAKED THROUGH THE PRESSURE FOR CHANGE WILL PERSIST BOTH SETS OF REFORMS TENDED TO TRANSFER POWER FROM PROTECTIONIST INTERESTS TO CONSUMERIST INTERESTS THE BRITISH HAD THINKERS LIKE RICHARD COBDEN AND DAVID RICARDO WHO ELABORATED THEORIES OF FREE TRADE AND COMPARATIVE ADVANTAGE TO EXPLAIN WHY THIS WAS GOOD IDEAS MATTER IN TIMES LIKE THESE NOT LEAST BECAUSE THEY HELP TO FOCUS RESENTMENT CONSTRUCTIVELY EVEN SO THE AVERAGE 19THCENTURY BRIT DIDN'T NEED A PROFESSOR TO EXPLAIN WHY MERCANTILIST LEGISLATION CUT INTO HIS STANDARD OF LIVING IT WAS NO ACCIDENT THAT THE ENFRANCHISEMENT OF URBAN VOTERS WAS SOON FOLLOWED BY REPEAL OF THE CORN LAWS WHICH HAD KEPT THE PRICE OF BREAD HIGH IN ORDER TO FATTEN THE PURSES OF BRITAIN'S LANDED GENTRY THE JAPANESE TAKE JUSTIFIABLE PRIDE IN SEEING THE WORLD FILL UP WITH SONYS AND TOYOTAS AND OTHER EXCELLENT PRODUCTS FROM THEIR WORKSHOPS YET JAPANESE CONSUMERS HAVE EVERY RIGHT TO BE DISCONTENTED TRAVELING ABROAD IN GROWING NUMBERS THEY HAVE DISCOVERED THAT THEY DO INDEED LIVE IN RABBIT HUTCHES AT LEAST COMPARED WITH THE RESIDENTS OF OTHER INDUSTRIALIZED COUNTRIES AND PAY HIGHER PRICES FOR SONYS AND TOYOTAS THAN FOREIGNERS DO THE ELECTORAL POWER OF THE RURAL DISTRICTS DOES MORE THAN ALL THE SANCTIMONY SPOUTED BY THE RICE LOBBY TO EXPLAIN WHY JAPANESE HOUSEWIVES STILL SHELL OUT FOUR TIMES THE WORLD PRICE FOR RICE THAT'S WHAT COMES OF A POLITICAL SYSTEM TILTED TOWARD PROTECTING PRODUCERS FROM CONSUMERS TRUE THE JAPANESE APPROACH ALLOWED SOME WORKERS TO LAND LIFETIME TENURE AT BIG COMPANIES AND IT ALLOWED JAPAN TO RACK UP HUGE TRADE SURPLUSES WHICH SEEMED TO REPRESENT SOME KIND OF INSURANCE AGAINST THE WORLD AGAIN SHUTTING JAPAN OFF FROM RAW MATERIALS THESE NO DOUBT DID MUCH TO APPEASE THE PERVASIVE INSECURITY OF THE GENERATION THAT SURVIVED THE WAR AND SUBSEQUENT DEPRIVATION BUT HAVING GROWN RICHER AND MORE SECURE THE JAPANESE TODAY ARE LOOKING BEYOND MERE SECURITY AND BEGINNING TO SEEK THE OPPORTUNITY TO LIVE MORE FULLY WHEN THE PSYCHOLOGY OF A NATION SHIFTS IN RESPONSE TO CHANGING MATERIAL CIRCUMSTANCES IT'S THE JOB OF THE POLITICAL SYSTEM TO ACCOMMODATE EVOLVING ATTITUDES THE OLD RASCALS MUST GO AND MAKE WAY FOR NEW RASCALS WHO ARE MORE IN TUNE WITH THE TIMES EVEN IF IT SOMETIMES TAKES A POLITICAL REVOLUTION TO PERSUADE THE OLD CROWD THAT ITS DAYS ARE OVER JAPAN AND BRITAIN AT LEAST HAD DEMOCRATIC INSTITUTIONS IN PLACE WHEN THIS CHALLENGE CAME OTHER ASIAN COUNTRIES AND LEADERS ESPECIALLY THOSE THAT STILL ENTERTAIN THE NOTION THAT THEIR PEOPLE CAN GET RICH WITHOUT ALSO GETTING THE VOTE OUGHT TO PONDER THE LESSON 9402020102 940202 BUSINESS BRIEFS MCCORMICK & CO ACQUIRED GRUPO PESA MEXICO CITY TERMS WEREN'T DISCLOSED PANHANDLE EASTERN CORP'S TEXAS EASTERN TRANSMISSION CORP UNIT FILED AN APPLICATION WITH THE FEDERAL ENERGY REGULATORY COMMISSION SEEKING APPROVAL TO TRANSPORT NATURAL GAS TO KENTUCKY UTILITIES CO'S EW BROWN ELECTRIC GENERATING STATION NEAR DANVILLE KY DONNELLY CORP WILL BUILD A 5 MILLION FACILITY NEAR LANGERS FRANCE THAT WILL MAKE WINDOW SYSTEMS FOR A 1995 MODEL MINIVAN TO BE PRODUCED BY EUROSTAR A JOINT VENTURE BETWEEN THE CHRYSLER CORP AND STEYRDAIMLERPUCH CAMDEN PROPERTY TRUST ACQUIRED A 10ACRE SITE SOUTH OF DENVER AND PLANS TO DEVELOP 216 APARTMENTS AT A TOTAL PROJECT COST OF 126 MILLION AMERICAN ECOLOGY CORP SIGNED A LETTER OF INTENT TO BUY THE ASSETS AND ASSUME CERTAIN LIABILITIES OF QUADREX CORP'S QUADREX RECYCLE CENTER TERMS OF THE PACT WEREN'T DISCLOSED FIRST FIDELITY BANCORP COMPLETED ITS ACQUISITION OF GREENWICH FINANCIAL CORP GREENWICH CONN FOR 419 MILLION IN CASH MOTHERS WORK INC COMPLETED ITS ACQUISITION OF PAGE BOY CO DALLAS FOR ABOUT 15 MILLION IN CASH AND STOCK 9402020101 940202 LEISURE & ARTS BOOKSHELF DEPOLARIZING CONSTITUTIONAL JURISPRUDENCE BY CLINT BOLICK THE JURISPRUDENTIAL WORLD ACCORDING TO EUGENE W HICKOK AND GARY L MCDOWELL IS DIVIDED INTO TWO CAMPS THOSE MOSTLY BUT NOT ALWAYS LIBERALS WHO SUBVERT JUDICIAL PROCESSES TOWARD IDEOLOGICAL ENDS AND THOSE WHO ADHERE TO CONSTITUTIONAL PRINCIPLES NO MATTER HOW UNJUST THE RESULT MESSRS HICKOK AND MCDOWELL COUNT THEMSELVES AMONG THE GUARDIANS OF THE CONSTITUTION'S TRUE VISION NONETHELESS DESPITE ATTACKING THE VERY REAL PROBLEM OF RESULTSORIENTED JURISPRUDENCE THIS LATEST FORAY INTO THE WORLD OF JUDICIAL RESTRAINT AND ORIGINAL INTENT PROVES ULTIMATELY AS UNSATISFYING AS THE HOBSON'S CHOICE THAT FORMS ITS THESIS AS REFLECTED IN THE TITLE JUSTICE VS LAW COURTS AND POLITICS IN AMERICAN SOCIETY FREE PRESS 253 PAGES 2495 THE AUTHORS ASSERT THAT THESE VALUES OFTEN CONFLICT AND WHEN THEY DO OUR REPUBLIC'S SURVIVAL DEPENDS ON PROTECTING THE LATTER NO MATTER HOW GREAT THE SACRIFICE OF THE FORMER RONALD REAGAN MADE THIS SAME POINT WHEN HE PLEDGED TO APPOINT JUDGES WHO WOULD ACT LIKE JUDGES AND NOT LIKE A BUNCH OF SOCIOLOGY MAJORS BUT THE REAGAN REVOLUTION WAS INCOMPLETE ARGUE MESSRS HICKOK AND MCDOWELL FOR RATHER THAN DECIDING CASES ON THE BASIS OF CONCRETE PRINCIPLES UNDERSTOOD AS NEUTRALLY TRANSCENDING THE CASE AT HAND THE CONTEMPORARY JUDGE ALL TOO FREQUENTLY OPTS FOR ATTEMPTING TO INDIVIDUALIZE JUSTICE FOR THE CASE BEFORE HIM THE ILLUSTRATION THAT WINDS ITS WAY THROUGH THE BOOK IS THE 1979 US SUPREME COURT CASE OF DESHANEY VS WINNEBAGO COUNTY IN WHICH A NINEYEAROLD CHILD WHO WAS SAVAGELY BEATEN BY HIS FATHER TO THE POINT OF NEARBRAIN DEATH SOUGHT MONETARY RECOVERY FROM THE SOCIAL SERVICES AGENCY THAT FAILED TO REMOVE HIM FROM HIS CLEARLY UNSAFE HOME THE LEGAL THEORY PRESSED BY THE LAD'S LAWYERS WAS THAT THE 14TH AMENDMENT'S DUE PROCESS CLAUSE IMPOSES AN AFFIRMATIVE DUTY UPON THE STATE TO PROTECT CITIZENS AGAINST OTHERS THE COURT RULED 63 AGAINST JOSHUA DESHANEY BUT THE DISSENTERS EXEMPLIFIED WHAT MESSRS HICKOK AND MCDOWELL CONSIDER THE APOTHEOSIS OF LIBERAL ACTIVISM POOR JOSHUA PROCLAIMED JUSTICE HARRY BLACKMUN ASSAILING THE MAJORITY FOR FAILING TO FOLLOW A VIEW THAT COMPORTS WITH DICTATES OF FUNDAMENTAL JUSTICE AND RECOGNIZES THAT COMPASSION NEED NOT BE EXILED FROM THE PROVINCE OF JUDGING BUT IF DESHANEY WAS THE HIGH POINT FOR JUDICIAL RESTRAINT THE COURT QUICKLY REVERTED TO ACTIVIST FORM THREE YEARS LATER IN PLANNED PARENTHOOD OF SOUTHEASTERN PENNSYLVANIA VS CASEY IN IT THE COURT PRESERVED THE RIGHT TO ABORTION WHILE UPHOLDING SOME RESTRICTIONS SUGGESTING THAT ADHERENCE TO ORIGINAL INTENT WOULD BE A CASEBYCASE EFFORT THE DECISION ARGUE THE AUTHORS GAVE POLITICAL EXPRESSION TO THE MORAL SENTIMENTS PRESUMED TO BE HELD BY THE PEOPLE MESSRS HICKOK AND MCDOWELL CORRECTLY ASSAIL JURISPRUDENCE BASED ON NOTHING MORE CONCRETE THAN WHAT JUSTICE WILLIAM DOUGLAS CALLED PENUMBRAS FORMED BY EMANATIONS WHICH ARE THE CONSTITUTIONAL EQUIVALENT OF EXHAUST FUMES BUT THE ALTERNATIVE VISION THEY PRESENT IN WHICH COURTS PASSIVELY DEFER TO LEGISLATIVE AND EXECUTIVE DECISIONS IS JUST AS MUCH A RECIPE FOR TYRANNY LIKE THE LIBERALS THEY CRITICIZE ADVOCATES OF JUDICIAL RESTRAINT ALSO HAVE A RESULTSORIENTED AGENDA IN THEIR CASE IT IS STATES' RIGHTS AND UNFETTERED MAJORITARIANISM THEY EMBRACE ORIGINAL INTENT WHEN IT SERVES THOSE ENDS BUT IGNORE IT WHENEVER IT INVESTS THE JUDICIARY WITH POWER TO PROTECT INDIVIDUAL LIBERTIES FOR INSTANCE THE 14TH AMENDMENT EXPLICITLY GUARANTEES NOT ONLY DUE PROCESS AND EQUAL PROTECTION OF THE LAWS BUT ALSO THE PRIVILEGES OR IMMUNITIES OF CITIZENS WHICH ENCOMPASSES SUCH BASIC RIGHTS AS FREEDOM OF CONTRACT AND THE RIGHT TO WORK IN A CHOSEN BUSINESS OR PROFESSION BUT MESSRS HICKOK AND MCDOWELL PREFER TO DWELL ON ANOTHER SECTION OF THE AMENDMENT WHICH GIVES CONGRESS ENFORCEMENT POWERS SUCH SELECTIVE INTENT PRODUCES SOME ECCENTRIC RESULTS THE AUTHORS APPLAUD THE 1872 SLAUGHTERHOUSE CASES WHICH EVISCERATED THE PRIVILEGES OR IMMUNITIES CLAUSE AND JUDICIAL PROTECTION FOR ECONOMIC LIBERTIES AND THEY ASSAIL BROWN VS BOARD OF EDUCATION WHICH ABOLISHED THE SEPARATE BUT EQUAL DOCTRINE AS AN EXERCISE OF RAW POLITICAL POWER WHILE MESSRS HICKOK AND MCDOWELL'S PRESCRIPTION WOULD GO FAR TO CURB COURTS THAT CREATE RIGHTS OUT OF THIN AIR IT FUELS THE EVEN MORE PERNICIOUS FORM OF JUDICIAL ACTIVISM THAT READS PRECIOUS RIGHTS OUT OF THE CONSTITUTION IT THEREBY DENIES THE VITAL ROLE THE FRAMERS ASSIGNED TO THE JUDICIARY DEFERENTIAL TO MAJORITY WILL WHEN ADDRESSED TOWARD LEGITIMATE ENDS BUT VIGOROUSLY PROTECTIVE OF FUNDAMENTAL LIBERTIES THE DICHOTOMY BETWEEN LAW AND JUSTICE IS NOT NEARLY SO GREAT AS MESSRS HICKOK AND MCDOWELL WOULD HAVE IT AND TO SUGGEST OTHERWISE IS NOT ONLY TO BESTOW AN ENORMOUS LOGISTICAL ADVANTAGE UPON LIBERAL ACTIVISTS BUT TO UNRAVEL THE CONSTITUTIONAL TAPESTRY THAT WAS SO CAREFULLY WOVEN TO ENSURE A SOCIETY IN WHICH NOT ONLY DEMOCRACY BUT LIBERTY FLOURISHES MR BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON DC 9402020100 940202 KITCHENSINK BONDS PROMPT SEC REVIEW BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION WORRIED ABOUT HIDDEN RISKS LURKING IN CERTAIN TRIPLEARATED MORTGAGE SECURITIES IS INVESTIGATING WHETHER TO TIGHTEN DISCLOSURE STANDARDS ON SUCH SECURITIES KNOWN AS CASHFLOW OR KITCHENSINK BONDS KITCHENSINKERS SO NAMED BECAUSE THEY CONTAIN ALMOST EVERYTHING BUT ARE OFFSPRING OF COLLATERALIZED MORTGAGE OBLIGATIONS WHICH ARE BACKED BY THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF MORTGAGE LOANS IN ESSENCE KITCHENSINK BONDS ARE CREATED BY LUMPING TOGETHER RISKY UNWANTED CMOS INTO A TRUST AND RECYCLING THE TRUST'S CASH FLOWS INTO NEW SECURITIES THAT APPEAR MORE APPETIZING SINCE MAY WALL STREET HAS SOLD ABOUT 4 BILLION OF SUCH KITCHENSINKERS THIS IS THE FIRST TIME THE SEC HAS RAISED QUESTIONS ABOUT THE COMPLEX CMO MARKET WHICH REPRESENTS ABOUT 800 BILLION OF SECURITIES OUTSTANDING THE REGULATORY SCRUTINY HAS ALREADY HAD A CHILLING EFFECT ON NEW ISSUANCE OF EXOTIC TYPES OF CMOS FOR EXAMPLE BEAR STEARNS & CO OF NEW YORK WHICH UNDERWROTE MORE THAN TWOTHIRDS OF THE KITCHENSINKERS OUTSTANDING SAYS IT WON'T SELL ANY MORE OF THEM UNTIL THE SEC COMPLETES ITS REVIEW WE LOOK FORWARD TO AN OPPORTUNITY TO CONTINUE DISCUSSIONS WITH THE SEC AND WILL CONTINUE TO WORK ON A RESOLUTION PRIOR TO ANY FURTHER ISSUANCE SAYS PETER CHERASIA A SENIOR MANAGING DIRECTOR AT BEAR STEARNS AMONG OTHER THINGS THE SEC INQUIRY AIMS TO DETERMINE WHETHER UNDERWRITERS SHOULD PROVIDE BUYERS WITH MORE INFORMATION ABOUT THE TYPES OF HARDTOANALYZE CMOS THAT BACK KITCHENSINKER TRUSTS THE AGENCY ALSO QUESTIONS WHETHER THE KITCHENSINKERS' TRIPLEA RATINGS WHICH MEASURE THE LIKELIHOOD OF INVESTORS' RECEIVING SPECIFIED AMOUNTS OF CASH FLOW NOT THE RISKINESS OF THE BONDS MIGHT BE MISLEADING WHILE THE SEC HAS RAISED CONCERNS ABOUT THE APPROPRIATENESS OF KITCHENSINKERS FOR SMALL INVESTORS UNDERWRITERS SAY THAT'S A MOOT POINT SINCE THESE SECURITIES HAVEN'T BEEN SOLD TO INDIVIDUALS THE SEC WON'T COMMENT ABOUT ITS MEETINGS WITH UNDERWRITERS AND RATING AGENCIES BUT PEOPLE ON WALL STREET FAMILIAR WITH THE DISCUSSIONS SAY THE AGENCY'S INTEREST MAY GO BEYOND KITCHENSINKERS IN THE COURSE OF A MEETING TWO WEEKS AGO BETWEEN SEC OFFICIALS AND REPRESENTATIVES FROM FITCH INVESTORS SERVICE A NEW YORK RATING AGENCY SEC OFFICIALS ALSO QUESTIONED THE APPLICATION OF A TRIPLEA RATING TO SECURITIES BACKED BY WHOLE LOANS OR MORTGAGES ON COMMERCIAL REAL ESTATE AND OTHER BIG PROPERTIES SENIOR SEC OFFICIALS FROM THE DIVISIONS OF MARKET REGULATION AND CORPORATE FINANCE FIRST BEGAN MEETING WITH REPRESENTATIVES FROM WALL STREET FIRMS IN NOVEMBER AFTER REPORTS IN THIS NEWSPAPER RAISED DOUBTS ABOUT INVESTORS' ABILITY TO ANALYZE THE COMPLEX SECURITIES REP HENRY B GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING FINANCE AND URBAN AFFAIRS COMMITTEE HAS ECHOED THOSE CONCERNS I AM AFRAID THAT THESE SECURITIES LIKE OTHER DERIVATIVES PILE RISK ON TOP OF RISK HE SAYS CURRENTLY THE SEC DOESN'T REQUIRE UNDERWRITERS OF KITCHENSINKER TRUSTS TO DISCLOSE WHERE THE RECYCLED CMOS CAME FROM WHAT THEIR CHARACTERISTICS ARE WHO ORIGINALLY UNDERWROTE THEM HOW THE CMOS WERE PRICED WHEN CONTRIBUTED TO THE TRUST OR THE VALUATION METHOD USED ONE MONEY MANAGER WITH 2 BILLION INVESTED IN MORTGAGEBACKED SECURITIES SAYS IT WOULD TAKE HIM SEVERAL HOURS ON A HIGHSPEED COMPUTER TO FIGURE OUT HOW THE KITCHENSINKERS WOULD REACT TO CHANGES IN INTEREST RATES DESPITE THEIR COMPLEXITIES KITCHENSINKERS ENJOY MORE LENIENT DISCLOSURE REQUIREMENTS THAN NORMAL BOND OFFERINGS OR PUBLIC SALES OF STOCK THAT'S BECAUSE THE CMOS THAT BACK THEM ARE DERIVED FROM MORTGAGES THAT ARE GUARANTEED BY GOVERNMENTSPONSORED AGENCIES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP AS A RESULT KITCHENSINKERS ARE DEEMED TO BE GOVERNMENT SECURITIES WHICH EXEMPTS THEM FROM DISCLOSURE RULES OF THE SECURITIES ACT OF 1933 THE FACT THAT MANY KITCHENSINKERS HAVE BEEN BLESSED WITH A TRIPLEA RATING ALSO WORRIES REGULATORS SENIOR SEC OFFICIALS SAY INVESTORS MAY MISUNDERSTAND WHAT THAT RATING REPRESENTS SINCE THE TRIPLEA RATING ON THESE BONDS HAS NOTHING TO DO WITH THE SAFETY OF THESE INVESTMENTS BUT ONLY WITH THE LIKELIHOOD THAT INVESTORS WILL RECEIVE THEIR CASH FLOWS AS PROMISED AS LONG AS 30 YEARS FROM NOW THE SEC WANTS TO KNOW HOW WE DO OUR ANALYSIS OF CASH FLOW SAYS STEPHEN JOYNT EXECUTIVE VICE PRESIDENT OF MORTGAGEBACKED SECURITIES AT FITCH WE ARE TRYING TO BE RESPONSIVE TO THEM THE QUESTION IS WHETHER A RATING CAN BE LIMITED AS NARROWLY AS THESE RATINGS ARE SAYS ANDREW JONES AN ANALYST AT DUFF & PHELPS WHICH HAS RATED MANY KITCHENSINKERS CERTAINLY NONE OF THAT SEEMS TO MATTER SO FAR TO INVESTORS WHO REMAIN DAZZLED BY THEIR FAT YIELDS OF TWO PERCENTAGE POINTS OVER SHORTTERM FLOATINGRATE NOTES 9402020099 940202 WHO'S NEWS LEMASTERS TO RESIGN AS CHAIRMAN AND CHIEF OF COMPUTER PRODUCTS BOCA RATON FLA COMPUTER PRODUCTS INC SAID JOHN N LEMASTERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL RESIGN THOSE POSTS AS SOON AS A SUCCESSOR IS FOUND MR LEMASTERS 60 YEARS OLD SAID HE AND OTHER DIRECTORS DECIDED TO SEARCH FOR A NEW CEO FOLLOWING THE RESIGNATION OF RON RITCHIE CHIEF OPERATING OFFICER IN JANUARY MR RITCHIE'S RESIGNATION DERAILED THE SUCCESSION PLANS WHICH CALLED FOR MR RITCHIE TO BECOME CEO IN 1995 MR LEMASTERS WILL REMAIN A DIRECTOR AND CONSULTANT TO THE COMPANY THE ELECTRONICS CONCERN ALSO REPORTED A FOURTHQUARTER NET LOSS OF 11 MILLION OR SIX CENTS A SHARE REFLECTING A 3 MILLION RESTRUCTURING CHARGE IN THE YEARAGO QUARTER THE COMPANY POSTED NET INCOME OF 17 MILLION OR EIGHT CENTS A SHARE SALES ROSE 14 TO 339 MILLION FROM 299 MILLION IN 1992 MR LEMASTERS SAID THE RESTRUCTURING WILL REDUCE PLANT CAPACITY AND ELIMINATE ABOUT 5 OF THE COMPANY'S 1500 JOBS IN NASDAQ STOCK MARKET TRADING COMPUTER PRODUCTS SHARES CLOSED AT 24375 UP 125 CENTS OR 54 9402020098 940202 WHO'S NEWS CLINTON NOMINATES PATRICK TO BECOME CIVIL RIGHTS CHIEF BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOMINATED BOSTON LAWYER DEVAL PATRICK AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE POST FOR CHIEF CIVILRIGHTS ENFORCER HAS BEEN EMPTY SINCE MR CLINTON TOOK OFFICE MR PATRICK 37 YEARS OLD IS A PARTNER IN THE FIRM OF HILL & BARLOW WHERE HE HAS A CIVIL AND CORPORATE PRACTICE HE ALSO IS INVOLVED IN A NUMBER OF PROBONO CIVILRIGHTS CASES MR PATRICK GREW UP IN A POOR BLACK NEIGHBORHOOD ON CHICAGO'S SOUTH SIDE WHERE HIS FAMILY RECEIVED WELFARE FOR A TIME HE ATTENDED MILTON ACADEMY PREPARATORY SCHOOL IN MASSACHUSETTS HARVARD COLLEGE AND HARVARD LAW SCHOOL HE SPENT A YEAR WORKING AND TRAVELING IN THE SUDAN AND NIGERIA AND WAS A STAFF LAWYER WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND MR PATRICK IS THE THIRD PERSON PUT FORWARD FOR THE JOB THE NOMINATION OF LANI GUINIER A UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR WAS WITHDRAWN BECAUSE OF CONTROVERSY SURROUNDING HER WRITINGS AND JOHN PAYTON DISTRICT OF COLUMBIA CORPORATION COUNSEL WITHDREW HIS NAME AFTER HE DIDN'T GET SUPPORT FROM MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS MR PATRICK'S NOMINATION QUICKLY DREW FIRE FROM THE CONSERVATIVE LEADER WHO LED THE ATTACK AGAINST MS GUINIER CLINT BOLICK VICE PRESIDENT OF THE INSTITUTE OF JUSTICE SAID MR PATRICK FAVORS RACIAL QUOTAS AN AFFIRMATIVEACTION TOOL MR PATRICK SPECIFICALLY HAS SAID HE OPPOSES MR CLINTON IN ANNOUNCING THE NOMINATION STRUCK BACK AT MR PATRICK'S OPPONENTS SAYING THEY DON'T GIVE A RIP ABOUT CIVIL RIGHTS WORDS OF PRAISE ALSO CAME QUICKLY REP JOHN CONYERS A MICHIGAN DEMOCRAT WHO IS DEAN OF THE CONGRESSIONAL BLACK CAUCUS SAID MR PATRICK'S COMBINATION OF CREDENTIALS AND LIFE EXPERIENCE WILL BE A BOON TO THE DEPARTMENT 9402020097 940202 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB ON THE TABLE OF ALL THE HINTS OF FLEXIBILITY ON HEALTH CARE SEEPING OUT OF THE WHITE HOUSE THIS WEEK THE MOST SIGNIFICANT WAS ONE OFFERED BY PRESIDENT CLINTON HIMSELF AT A PRIVATE WHITE HOUSE MEETING IN A TALK WITH GOVERNORS MR CLINTON HINTED TO REPUBLICAN CARROLL CAMPBELL OF SOUTH CAROLINA THAT HE IS WILLING TO COMPROMISE ON HIS PLAN'S MANDATORY HEALTHCARE ALLIANCES ALLIANCES ARE THE NEW AGENCIES THE CLINTON PLAN WOULD SET UP TO MARKET HEALTH INSURANCE TO PEOPLE AND COMPANIES THROUGHOUT A STATE OR REGION THE PURPOSE OF ALLIANCES OF COURSE IS TO PUSH DOWN INSURANCE COSTS BY POOLING THE BUYING POWER OF HEALTHCARE CONSUMERS BUT TO MANY CONSUMERS ALLIANCES ARE STARTING TO LOOK LIKE A GOOD IDEA EMBELLISHED TOO FAR IN SOME RESPECTS ALLIANCES HAVE EMERGED AS AN ACHILLES HEEL OF THE CLINTON PLAN AN ELEMENT THAT FEEDS THE PUBLIC'S VAGUE FEARS THAT THAT PLAN WOULD SIMPLY BE TOO BUREAUCRATIC AND IMPERSONAL TO CRITICS OF THE CLINTON PLAN WHOSE REAL OBJECTIONS ACTUALLY LIE ELSEWHERE ALLIANCES HAVE BECOME A DEVICE FOR UNDERMINING PUBLIC CONFIDENCE SO AS GOV CAMPBELL AND OTHER GOVERNORS GATHERED IN WASHINGTON FOR THEIR ANNUAL WINTER MEETING AGREE THE PRESIDENT'S WILLINGNESS TO COMPROMISE IS AN IMPORTANT STEP DOWN THE MURKY PATH TOWARD A BIPARTISAN HEALTHCARE PLAN MOST PUBLIC ATTENTION HAS FOCUSED ON THE PIECES OF HEALTHCARE REFORM ON WHICH PRESIDENT CLINTON ISN'T COMPROMISING HIS DEMAND FOR UNIVERSAL COVERAGE FOR ALL AMERICANS AND HIS CALL FOR EMPLOYERS TO PICK UP 80 OF WORKERS' INSURANCE COSTS IN SHEER POLITICAL TERMS THOSE ARE BIG STUMBLING BLOCKS WITH REPUBLICANS AND CONSERVTIVE DEMOCRATS BUT IN PUBLICOPINION TERMS MR CLINTON IS ON FAIRLY FIRM GROUND ON THOSE FUNDAMENTAL ISSUES IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL 78 OF THOSE SURVEYED SUPPORTED THE CALL FOR UNIVERSAL COVERAGE AND 65 SUPPORTED A MANDATE THAT BUSINESSES PAY AT LEAST 80 OF EMPLOYEES' COST WITH GOVERNMENT AID TO SUBSIDIZE SMALL BUSINESSES YET OVERALL PUBLIC SUPPORT FOR THE CLINTON PLAN HAS BEEN SLIPPING THAT SEEMS TO BE HAPPENING BECAUSE OF UNDERLYING FEARS THAT THE PLAN WOULD JUST CREATE NEW HEALTH BUREAUCRACIES IN THE NAME OF CHOPPING DOWN OLD ONES ALLIANCES LIE AT THE HEART OF SOME OF THOSE FEARS UNDER THE CLINTON PLAN THE NEW REGIONAL ALLIANCES WOULD BE SET UP EITHER AS NONPROFIT ORGANIZATIONS OR STATE AGENCIES THEY WOULD BE RUN BY BOARDS OF DIRECTORS INCLUDING CONSUMERS AND EMPLOYERS ALLIANCES WOULD FIRST CONTRACT WITH INSURANCE COMPANIES AND HEALTH PLANS WILLING TO PROVIDE A STANDARD PACKAGE OF HEALTH BENEFITS AND THEN LET CONSUMERS PICK FROM A MENU OF THOSE QUALIFYING HEALTH PLANS SO FAR SO GOOD BUT THE CLINTON PLAN GOES FURTHER IT WOULD REQUIRE COMPANIES WITH FEWER THAN 5000 EMPLOYEES TO GET THEIR INSURANCE THROUGH ALLIANCES ALLIANCES WOULD HAVE THE POWER TO APPROVE MARKETING MATERIALS USED BY HEALTH PLANS AND THEY COULD EXCLUDE HEALTH PLANS THAT ARE DEEMED TOO EXPENSIVE THEY WOULD SET A SCHEDULE FOR PAYMENTS TO BE MADE UNDER FEEFORSERVICE PLANS IN WHICH PATIENTS USE THEIR INSURANCE BENEFITS TO DIRECTLY PAY ANY HEALTHCARE PROVIDER AND IF TOO MANY CONSUMERS WANT TO PARTICIPATE IN A PARTICULAR HEALTH PLAN THE ALLIANCE COULD RANDOMLY SELECT WHO GET SPOTS CLINTONITES HAVE LONG VIEWED ALLIANCES AS A WAY TO GIVE THE AVERAGE PERSON A SENSE OF POWER AND LOCAL CONTROL BUT CELINDA LAKE A DEMOCRATIC POLLSTER WHO HAS DONE EXTENSIVE POLLS AND FOCUSGROUP DISCUSSIONS ABOUT HEALTH CARE SAYS THE ALLIANCE SYSTEM FREQUENTLY AROUSES MISGIVINGS AMONG CONSUMERS THEY ARE VERY CONCERNED ABOUT IT BEING BUREAUCRATIC SHE SAYS THEY THINK THERE'S AN INTERMEDIARY NOW BETWEEN THEM AND THEIR HEALTHCARE PROVIDERS AND THEY WANT TO GET RID OF THAT LAYER AND RATHER THAN REASSURE AMERICANS SHE SAYS THE CONCEPT OF A NETWORK OF VARIOUS STATE AND REGIONAL ALLIANCES OFTEN RAISES FEARS OF A PATCHWORK HEALTHCARE SYSTEM IN WHICH PEOPLE WON'T BE SURE WHAT HAPPENS WHEN THEY MOVE FROM ONE STATE TO THE NEXT CONSUMERS DO LIKE THE IDEA OF GIVING SMALL BUSINESSES AND INDIVIDUALS MORE BUYING CLOUT BY HELPING THEM TO FORM INSURANCEPURCHASING COOPERATIVES MS LAKE SAYS SO SHE SAYS PARING THE ALLIANCE CONCEPT BACK DOWN TO A SIMPLER VERSION WOULD BE APPEALING WHAT THEY NEED TO DO IN AUTOMOTIVE TERMS IS STRIP AWAY THE FINS ADDS PETER HART A DEMOCRAT WHO CONDUCTS THE JOURNAL/NBC POLL THE WHITE HOUSE SEEMS TO BE MOVING IN THAT DIRECTION TREASURY SECRETARY LLOYD BENTSEN SAID A FEW DAYS AGO THAT SOME COMPANIES WITH FEWER THAN 5000 EMPLOYEES MAY BE EXEMPTED FROM THE ALLIANCES AND THE MESSAGE FROM MR CLINTON THIS WEEK WAS THAT THE ALLIANCE ISSUE IS ON THE TABLE FOR DISCUSSION SAYS VERMONT DEMOCRATIC GOV HOWARD DEAN WHO WAS INVOLVED IN THE WHITE HOUSE DISCUSSION THAT HE NOTED IS A VERY BIG THING 9402020096 940202 BUSINESS BRIEF PARALLEL PETROLEUM CORP CONCERN'S PROVED RESERVES OF OIL GAS GREW 16 IN 1993 PARALLEL PETROLEUM CORP SAID THAT ITS 1993 VOLUME OF PROVED OIL AND GAS RESERVES INCREASED 16 TOTAL PROVED RESERVES ROSE TO 48 MILLION EQUIVALENT BARRELS OF OIL FROM 415 MILLION AT YEAR END 1992 PROVED OIL RESERVES INCREASED 25 TO 1618000 BARRELS AT YEAR END FROM 1296000 FROM A YEAR AGO PROVED NATURALGAS RESERVES JUMPED 12 TO 191 BILLION CUBIC FEET FROM 171 BILLION CUBIC FEET THE PRESENT VALUE OF THE MIDLAND TEXAS COMPANY'S TOTAL PROVED RESERVES IS ESTIMATED AT 211 MILLION UP 2 FROM 208 MILLION THE VALUE OF THE PROVED RESERVES LAST YEAR WAS BASED ON AN OIL PRICE OF 1325 A BARREL DOWN 29 FROM 1850 A BARREL A YEAR EARLIER THE NATURALGAS PRICE BASIS AT YEAR END 1993 WAS 185 PER THOUSAND CUBIC FEET DOWN 13 FROM 212 A YEAR AGO 9402020095 940202 BUSINESS BRIEF DYNAMICS RESEARCH CORP COMPANY TO POST 80 DROP IN NET FOR FISCAL 4TH QUARTER DYNAMICS RESEARCH CORP BATTERED BY LOSING A CONTRACT EXPECTS TO REPORT NET INCOME FELL 80 ON A 5 DROP IN REVENUE FOR ITS FISCAL FOURTH QUARTER ENDED DEC 25 ALBERT RAND PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE BOSTONBASED PROVIDER OF COMPUTERIZED SYSTEMS FOR THE MILITARY EXPECTS TO REPORT NET FOR THE PERIOD FELL TO ABOUT 365000 OR SEVEN CENTS A SHARE FROM 18 MILLION OR 35 CENTS A SHARE REVENUE FELL TO 317 MILLION FROM 334 MILLION HE SAID AS PREVIOUSLY REPORTED DYNAMICS RESEARCH LOST A 15 MILLION A YEAR CONTRACT TO MANAGE ENGINEERING SPECIFICATIONS FOR THE HANSCOM AIR FORCE BASE IN LEXINGTON MASS MR RAND SAID THAT PIECES OF THE CONTRACT WERE WON BY SEVEN OTHER COMPANIES MANY OF WHICH WON THEM UNDER SMALL BUSINESS OR MINORITY SETASIDE PRORGAMS MOST OF THOSE COMPANIES HAVE ENDED UP SUBCONTRACTING WITH DYNAMICS TO CONTINUE DOING THE WORK BUT AT A LOWER PRICE DESPITE THE WEAK QUARTER MR RAND HE IS UPBEAT ABOUT THE CURRENT YEAR BUT DIDN'T MAKE SPECIFIC PROJECTIONS 9402020094 940202 TEXAS JOURNAL LETTERS TO THE EDITOR BRAVO ON PANKAU I WAS IMPRESSED BY YOUR ARTICLE ON EDMUND PANKAU IN THE JAN 12 EDITION PANKAU PI LESS THAN MEETS THE EYE MY CLOSE FRIEND AND CONFIDANT TOM SHERMAN SR OWNER OF THE LAKE CHARLES AMERICAN PRESS AND OTHER NEWSPAPERS ONCE SHARED WITH ME HIS THOUGHTS ON THE STATE OF INVESTIGATIVE REPORTING HE SAID IN SUMMARY THAT IT WAS A LOST ART THE TIME WAS DURING THE 1960S FOR ME THE ARTICLE ON MR PANKAU CLEARLY ESTABLISHES THAT YOU BOTH KNOW AND PRACTICE THE ART I COMMEND YOU FOR IT TOM WOULD TOO IF HE WERE STILL ALIVE 9402020093 940202 CREDIT RATINGS ROWAN SENIOR NOTES RECEIVE DOWNGRADE OVER DRILLING EXPOSURE NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE DEBT RATING ON SENIOR NOTES OF ROWAN COS REFLECTING ITS VIEW THAT THE COMPANY'S INCREASED EXPOSURE TO THE DEPRESSED DRILLING INDUSTRY WILL RESULT IN CONTINUED LOSSES THE RATING AGENCY LOWERED THE DEBT RATING ON THE COMPANY'S 200 MILLION OF 11875 SENIOR UNSECURED NOTES TO BA3 FROM BA2 MOODY'S SAID THAT IT EXPECTS ROWAN'S MARATHON LETOURNEAU ACQUISITION WHICH IS TO CLOSE DURING THE CURRENT QUARTER WILL INCREASE ROWAN'S ALREADY CONSIDERABLE EXPOSURE TO EXTREMELY VOLATILE AND UNPREDICTABLE EXPLORATION AND DEVELOPMENT ACTIVITY ROWAN A HOUSTON OFFSHORE CONTRACTDRILLING AND HELICOPTERSERVICE PROVIDER LAST YEAR AGREED TO PURCHASE THE MARATHON LETOURNEAU CO UNIT OF GENERAL CABLE CORP FOR ABOUT 50 MILLION THE UNIT PRODUCES HEAVY EQUIPMENT FOR THE MINING AND TIMBER INDUSTRIES AND BUILDS DRILLING RIGS MOODY'S SAID IN A STATEMENT THAT THE NEW RATING FACTORS IN AN EXPECTATION OF SOME EARNINGS IMPROVEMENT FROM THE CONTINUING STRENGTH OF DOMESTIC GAS PRICES AS WELL AS ROWAN'S CONSIDERABLE LIQUIDITY FOR ITS PART ROWAN SAID IN A STATEMENT THAT WHILE OIL AND GAS PRICES ARE STILL UNPREDICTABLE IT BELIEVES ITS 1994 FIRST QUARTER WILL BE MUCH BETTER THAN THE 1993 FIRST QUARTER'S NET LOSS OF 135 MILLION THE COMPANY SAID ITS CASH AND RECEIVABLES AT YEAREND 1993 EXCEEDED 200 MILLION UP FROM 84 MILLION A YEAR EARLIER AS FOR MARATHON LETOURNEAU THE COMPANY WAS SLIGHTLY PROFITABLE LAST YEAR AND APPEARS IT WILL BE PROFITABLE IN THE CURRENT QUARTER SAID CR PALMER ROWAN'S CHAIRMAN AND CHIEF EXECUTIVE I FORESEE NO CIRCUMSTANCE THAT WILL ALTER ROWAN'S ABILITY OR COMMITMENT TO CUSTOMERS EMPLOYEES SUPPLIERS LENDERS OR SHAREHOLDERS 9402020092 940202 LETTERS TO THE EDITOR WHY POLICE ARE SOMETIMES THE ENEMY YOU PUBLISHED STUART CREQUE'S EDITORIALPAGE PIECE WE MUST RESPECT POLICE OFFICERS ON DEC 29 IT WAS REPRINTED IN THE OAKLAND TRIBUNE ON JAN 12 WITHIN A WEEK THESE HEADLINES APPEARED IN TWO BAY AREA NEWSPAPERS OFFICERS FACE DISCIPLINE IN INJURY OF TWO LATINOS COPS KILL MAN IN SEARCH OF HOUSE AND COP TO STAND TRIAL IN ASSAULT CASE YET MR CREQUE CANNOT GRASP WHY THERE EXISTS A SEGMENT OF POPULATION THAT HAS NO CONCEPT OF THE RULE OF LAW OR SOCIAL ORDER IT REGARDS THE POLICE AS AN IMPLACABLE ENEMY PERHAPS A PLACE TO START LOOKING FOR ANSWERS LIES IN THE FACTS OF THE CASE MR CREQUE DISCUSSES THE SOCALLED PIT BULL INCIDENT IN WHICH MY SON LUKE MY HUSBAND RAPHAEL GRINAGE AND OFFICER WILLIAM GRIJALVA AND OUR DOG WERE ALL KILLED IT WOULD BE INTERESTING TO KNOW THE SOURCE OF THE INFORMATION HE CITES WITH AUTHORITY FOR IT IS CLEAR HE DID NOT INTERVIEW THE FAMILY OR THE NEIGHBORS MR CREQUE CLAIMS THE POLICE DEPARTMENT'S ANIMAL CONTROL SECTION HAD ATTEMPTED TO PICK UP CHEWY OUR DOG ON THE DAY PRIOR TO THE SHOOTING THIS IS NOT TRUE ANIMAL CONTROL CALLED LUKE TWO DAYS BEFORE THE TRAGEDY TO DISCUSS THE VALIDITY OF THE DOG'S RABIES SHOTS BUT DID NOT COME TO THE HOUSE BEFORE DEC 15 THE ARTICLE SAYS CHEWY HAD BITTEN A NEIGHBOR THE DAY BEFORE THIS IS NOT TRUE CHEWY HAD BITTEN A TRESPASSER WHO HAD ENTERED THE HOUSE FIVE DAYS EARLIER THE ARTICLE SAY CHEWY'S VACCINATION HAD EXPIRED THE SHOTS HAD BEEN GIVEN BY ANIMAL CONTROL IN OCTOBER 1991 AND RABIES SHOTS ARE VALID FOR THREE YEARS ACCORDING TO THE ASPCA THE REST OF THE FACTS RECITED BY MR CREQUE CONTINUE TO REFLECT THE SELECTED EVENTS REPORTED BY THE POLICE SOME OF THE OMISSIONS INCLUDE THE FACT THAT EYEWITNESSES REPORT THAT LUKE WAS BEATEN TO THE GROUND BY AT LEAST TWO OFFICERS WITH BILLY CLUBS LUKE'S FIRST RESPONSE WAS WITH HIS FIST NOT WITH A GUN AND IT IS NOT CLEAR WHO WAS THE FIRST TO DRAW A WEAPON MR CREQUE CONCLUDES THERE YOU HAVE IT THREE MEN KILLED SENSELESSLY HE MIGHT HAVE GONE FURTHER AND SPECULATED AS TO WHY IT HAPPENED AND WHO WAS IN A POSITION TO HAVE AVOIDED THIS TRAGIC ENDING TO A CIVIL DISPUTE OVER PAPERWORK WHEN PEOPLE LIKE MR CREQUE START REALIZING THAT POLICE OFFICERS WILL BE RESPECTED WHEN THEY RESPECT THE CITIZENS THEY ARE EMPLOYED TO SERVE WE WILL BEGIN TO SEE SOME POSITIVE CHANGE IN THE OUTLOOK OF THAT SEGMENT OF THE COMMUNITY THAT REGARDS THE POLICE AS AN IMPLACABLE ENEMY COMMENTING THAT THE OAKLAND POLICE DEPARTMENT WAS ONCE NOTED FOR ITS EXCESSIVE VIGOR IN ENFORCING THE LAW MR CREQUE CLAIMS THAT IN THE PAST 26 YEARS THE CITY HAS BEEN SUCCESSFUL IN REFORMING THE POLICE DEPARTMENT IT IS OBVIOUS THAT HE HAS NO IDEA OF THE NUMBER OF FAMILIES WHOSE MEMBERS HAVE BEEN INSULTED PHYSICALLY ABUSED INJURED AND KILLED BY POLICE OFFICERS IN RECENT YEARS IF IT'S RESPECT WE MUST HAVE THEN LET IT BE RESPECT FOR JUSTICE FOR FAIRNESS AND FOR THOSE WHO SEEK TO ATTAIN IT THROUGH THEIR BEHAVIOR LET US NEVER RESPECT A UNIFORM AND A BADGE WHEN THOSE BECOME SYMBOLS OF ABUSIVE POWER LET US RESPECT POLICE OFFICERS WHEN THEY REPRESENT MEMBERS OF THE COMMUNITY PROTECT CITIZENS FROM DANGER AND PROMOTE PEACE IN OUR NEIGHBORHOODS 9402020091 940202 TEXAS JOURNAL LETTERS TO THE EDITOR FREDERICKSBURG FAN YOUR RECENT ARTICLE ON ELECTRIC RATES WHY THE INCREASE HOW DO WE COMPARE ANSWERING QUESTIONS ABOUT ELECTRIC RATES JAN 12 REPORTED THAT UPSHUR RURAL ELECTRIC COOPERATIVE HAS THE STATE'S LOWEST RESIDENTIAL ELECTRIC RATES IN FACT I WOULD LIKE TO POINT OUT THAT THE CITY OF FREDERICKSBURG'S 4000 RESIDENTIAL ELECTRIC CUSTOMERS PAY LOWER RESIDENTIAL RATES THAN UPSHUR RURAL ELECTRIC COOPERATIVE CUSTOMERS OUR COMMERCIAL AND INDUSTRIAL ELECTRIC RATES AS WELL AS THE CITY'S WATER AND SEWER RATES ARE ALSO AMONG THE STATE'S LOWEST 9402020090 940202 ROUND TRIP HOW A STOCK'S RUNUP LAST SUMMER ENDED IN A RAFT OF LAWSUITS BACKERS SEE CABLE GOLD MINE BUT NASD HAS DELISTED FUTURE COMMUNICATIONS RECOMMENDED BY RAFI KHAN BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WITH FOUNDER SERGIO BOSCO AND STOCKBROKER RAFI KHAN IN THE FRONT SEAT A CABLE TELEVISION AND PROGRAMMING COMPANY CALLED FUTURE COMMUNICATIONS INC TOOK A WILD RIDE ON THE STOCK MARKET LAST SUMMER PICKING UP TECHNOHUNGRY INVESTORS ALONG THE WAY THEY ALL SHOULD HAVE KNOWN BETTER THE COMPANY WHOSE STOCK LEAPT FROM ABOUT 7 AT THE START OF JUNE TO 2750 IN LATE AUGUST AS MR KHAN WAS SAYING IT WAS ON ITS WAY TO 40 NOW IS BEING SUED FOR FRAUD BY THE SECURITIES AND EXCHANGE COMMISSION AND SEVERAL SHAREHOLDER GROUPS MILTON BERLE IS SUING TOO SAYING FUTURE VIOLATED HIS CONTRACT AS CELEBRITY SPOKESMAN PRICE WATERHOUSE IS DENYING FUTURE'S CONTENTION THAT PRICE WATERHOUSE AGREED TO BECOME FUTURE'S AUDITOR AND FUTURE HAS FILED FOR CHAPTER 11 PROTECTION UNDER THE BANKRUPTCY LAW FUTURE CREATES TELEVISION PROGRAMMING AND SENDS IT BY SATELLITE TO STATIONS IN EXCHANGE FOR ADVERTISING TIME THAT FUTURE CAN SELL MR BOSCO HAS ENVISIONED IT AS A TV NETWORK THAT WOULD GROW TO RIVAL THE MAJOR NETWORKS IN SIZE A FIFTH ALTERNATIVE FOR AMERICAN VIEWERS BUT CREATING TV NETWORKS ISN'T CHEAP FOX SPENT A REPORTED 140 MILLION LAUNCHING ONE AND FUTURE HAS NEVER REPORTED ANNUAL REVENUE OF MORE THAN 66 MILLION WORSE COURT RECORDS REVEAL FUTURE TO BE A FINANCIAL AND MANAGEMENT MORASS ALTHOUGH FUTURE ATTRACTED FUND MANAGERS AT SUCH INSTITUTIONS AS FIDELITY INVESTMENTS IN BOSTON PIONEERING MANAGEMENT CORP OF BOSTON AND THE INVESCO FUNDS GROUP OF DENVER THE STOCK LAST FALL WAS DELISTED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOR INVESTORS TEMPTED BY THE GLAMOUR OF FASHIONABLE INDUSTRIES FUTURE'S STORY IS A VIVID REMINDER OF JUST HOW BADLY HOPES CAN OUTSTRIP REALITY ESPECIALLY WHEN BOOSTED BY HYPERBOLIC PRONOUNCEMENTS AND OBSCURED BY A CONVOLUTED CORPORATE STRUCTURE FUTURE GOT ITS START IN THE LATE 1970S WHEN MR BOSCO AN ELECTRONICS WHIZ WHO HAD FORMED SEVERAL SMALL FIRMS ON NEW YORK'S LONG ISLAND TO BUILD CABLETV SYSTEMS WENT PUBLIC BY MERGING ONE OF HIS COMPANIES INTO A SHELL COMPANY A DECADE LATER HE MOVED THE FIRM INITIALLY CALLED FUTURESAT INDUSTRIES INC TO DALLAS AND CHANGED ITS NAME TO FUTURE COMMUNICATIONS OVER THE YEARS MR BOSCO HAS LEFT A TRAIL OF BITTER BUSINESS ASSOCIATES INVESTORS AND FORMER EMPLOYEES SOME OF WHOM DESCRIBE BEING BEGUILED BY HIS EVERSUNNY DISPOSITION SOME OF THESE ADVERSARIES SUED ACCOUNTING FOR DOZENS OF LAWSUITS FILED AGAINST MR BOSCO THE COMPANY AND ITS UNITS IN FEDERAL STATE AND COUNTY COURTS IN DALLAS ALONE MR BOSCO SEVERAL FORMER EMPLOYEES RECALL WAS KNOWN FOR SAYING WE DON'T PAY THEM UNTIL THEY'RE ON THE COURTHOUSE STEPS THROUGH HIS LAWYER HE DENIES SAYING THAT FUTURE HAD TROUBLE MEETING SOME OF THE STANDARDS OF PUBLIC COMPANIES IN THE 1980S IT MISSED OR WAS LATE ON FOUR ANNUAL AND EIGHT QUARTERLY REPORTS AN SEC INJUNCTION SHOWS IN 1988 AND 1990 FUTURE DIDN'T ISSUE PROXY MATERIALS OR HOLD ANNUAL MEETINGS MR BOSCO'S LAWYER SAYS IT HELD MEETINGS EVERY TWO YEARS TO SAVE MONEY FUTURE STILL HASN'T HELD AN ANNUAL MEETING FOR THE YEAR ENDED OCT 31 1992 TO SAY NOTHING OF THE SUBSEQUENT FISCAL YEAR ONE POSTPONEMENT REASON STATED IN A PRESS RELEASE WAS THAT OFFICIALS WERE TOO BUSY FUTURE AND ITS WEB OF AFFILIATED FIRMS ARE RUN FOR THE MOST PART BY MR BOSCO FAMILY MEMBERS AND FRIENDS MR BOSCO'S WIFE JOSEPHINE WHO SUFFERS FROM EMPHYSEMA AND REQUIRES OXYGEN 24 HOURS A DAY IS DIRECTOR OF PROGRAMMING FOR MSTV INC THE CORE PROPERTY HER NINEYEAROLD GRANDSON STARS IN ONE PROGRAM MR BOSCO'S SON RICHARD IS PRESIDENT OF COMMUNICATIONS INVESTMENT CORP AN AFFILIATED COMPANY SERGIO BOSCO'S DAUGHTER LIA GORMAN ACTS AS HIS SECRETARY AND ADMINISTRATOR AND HOLDS A STAKE IN CLASSIC VIDEO THEATER INC A FLORIDA COMPANY THAT SUPPLIES PROGRAMMING TO MSTV MR BOSCO'S SONINLAW DAVID GORMAN WAS NAMED PRESIDENT OF FUTURE IN LATE SEPTEMBER AS FOR HIS QUALIFICATIONS PAST PROXY STATEMENTS SAID THAT IN 1981 TO 1983 HE RAN A DALLAS CABLETV PROGRAM DISTRIBUTION UNIT OF OAK INDUSTRIES INC OF WALTHAM MASS IN FACT FROM AUGUST 1981 TO MARCH 1983 MR GORMAN WAS SERVING TIME IN A FLORIDA PRISON AFTER BEING ARRESTED IN AN ORLANDO PARKING LOT WITH 141 POUNDS OF MARIJUANA MR GORMAN AFTER FIRST SAYING THIS WAS SOMEONE ELSE WITH THE SAME NAME AND BIRTH DATE LATER ADMITTED SERVING PRISON TIME FOR THE CRIME AND SAID FUTURE'S PROXIES WERE ERRONEOUS BECAUSE HE HADN'T GIVEN IT CORRECT INFORMATION MR GORMAN SAYS THAT WHEN HE BECAME FUTURE'S PRESIDENT HE REPLACED GARY DARTNALL WHOSE APPOINTMENT AS PRESIDENT AND A DIRECTOR FUTURE ANNOUNCED A YEAR AGO BUT MR DARTNALL SAYS HE NEVER ASSUMED THE POST OF PRESIDENT HE SAYS HE WAS AN HONORARY PARTTIME CONSULTANT FUTURE SAYS HE QUIT THE COMPANY LAST FALL AT FUTURE'S FORMER OFFICES IN WEST DALLAS MONEY OFTEN WAS SHUTTLED AMONG UNITS FOR INSTANCE ON NOV 23 AND 24 1992 JOHN DUPERTUIS NOW FUTURE'S CHIEF FINANCIAL OFFICER WROTE TWO CHECKS TOTALING 87600 TO MSTV OUT OF ONE UNIT'S BANK ACCOUNT ACCORDING TO BANKRUPTCYCOURT DOCUMENTS FOR A COMPANY AFFILIATED WITH THE UNIT ON NOV 23 AN 87600 DEPOSIT WAS MADE INTO THAT ACCOUNT FROM ANOTHER UNIT I SAW THEM TAKE ALL THIS MONEY AND MOVE IT THROUGH ACCOUNTS TO BUILD UP THEIR REVENUES BALANCE SHEET AND PROFITS AND LOSSES SAYS PUTT FLEMING WHO WAS A CONSULTANT TO FUTURE FOR PART OF 1992 MR DUPERTUIS SAYS SHUTTLING MONEY ABOUT IS COMMON FOR COMPANIES WHOSE UNITS SHARE COMMON WORKING CAPITAL IT DOES NOT AFFECT THE INCOME STATEMENT HE SAYS SOME OF THIS ACTIVITY WAS DESIGNED TO COVER CASH SHORTAGES LIKE MANY GROWING COMPANIES MR DUPERTUIS SAYS FUTURE HASN'T ALWAYS HAD ENOUGH CASH ON HAND THEIR NONSUFFICIENT CHECK CHARGES HAD TO BE ASTRONOMICAL SAYS SHELLEY MCBRIDE A SALESMAN WHO QUIT A YEAR AGO AFTER HE SAYS HE RECEIVED A SERIES OF BOUNCED CHECKS FOR WAGES AND BUSINESS EXPENSES FROM THE COMPANY IN ITS REPORT FOR THE FISCAL SECOND QUARTER ENDED APRIL 30 FUTURE SAID ITS OUTSTANDING CHECKS TOTALED 198520 MORE THAN ITS BANK BALANCE MR DUPERTUIS SAYS THAT PART OF THE REPORT WAS AN ERROR AS FOR FUTURE'S BOARD ARNE JENSEN A DIRECTOR UNTIL SEPTEMBER SAYS THAT AT BOARD MEETINGS HE WAS OFTEN THE ONLY ONE OF THREE OUTSIDE DIRECTORS IN ATTENDANCE MR JENSEN A FORMER CBS NEWS TECHNICAL SUPERVISOR ALSO SAYS HE WAS PLACED ON THE AUDIT COMMITTEE WITHOUT HIS KNOWLEDGE AND NEVER EVEN ATTENDED A MEETING OF IT MR BOSCO DENIES THIS THROUGH HIS ATTORNEY MR BOSCO WHO DECLINED TO BE INTERVIEWED HAS TEMPORARILY STEPPED ASIDE FROM THE COMPANY'S OPERATIONS DESPITE ALL THIS FUTURE'S STOCK GOT HOT LAST SUMMER IT WAS PLUGGED FOR MONTHS BY MARKETMAKER CHELSEA STREET SECURITIES INC OF IRVING TEXAS AND LATER BY REYNOLDS KENDRICK STRATTON INC OF BEVERLY HILLS CALIF WHICH ABSORBED SOME CHELSEA BROKERS AFTER CHELSEA CLOSED IN JUNE OFFERING UNWAVERING SUPPORT AT REYNOLDS KENDRICK WAS MR KHAN THE BROKER SAW GREAT PROMISE IN FUTURE'S MSTV NETWORK WHICH DEALS MOSTLY WITH LOWPOWER STATIONS HE TOLD INVESTORS THAT THE FEDERAL CABLE ACT OF 1992 IN REQUIRING CABLE SYSTEMS TO CARRY SOME LOWPOWER STATIONS' SIGNALS TRANSFORMS MSTV'S 100PLUS LOCAL LOWER POWER TVSTATION AFFILIATES WITH A LIMITED LOCAL AUDIENCE INTO A VIABLE ALTERNATIVE VIEWING NETWORK HE ENVISIONED A THREEYEAR BONANZA FUTURE'S OWN FORECASTS WERE NO LESS ROSY IN ONE SEC FILING IT SAID MSTV HAD A POTENTIAL VIEWERSHIP OF MORE THAN 42 MILLION HOUSEHOLDS A HUGE 49 OF THE US MARKET AND ALREADY HAD 118 AFFILIATES DEFINED AS STATIONS THAT BROADCAST AT LEAST FOUR HOURS OF ITS PROGRAMMING DAILY BUT 31 OF THE STATIONS LISTED AS AFFILIATES DON'T MEET THAT DEFINITION 23 OF THEM IN FACT BROADCAST JUST ONE HOUR OF MSTV PROGRAMMING WEEKLY USUALLY BILLY BOB'S COUNTRY A COUNTRYMUSIC PROGRAM FILMED AT A FORT WORTH NIGHTCLUB MR GORMAN CONTENDS THAT STATIONS THAT TAKE ANY PROGRAMMING ARE AFFILIATES THROUGH THE SUMMER FUTURE ITSELF ISSUED A SERIES OF ANNOUNCEMENTS A DEAL HAD BEEN MADE TO ACQUIRE TWO FILM LIBRARIES CONTAINING 700 COPYRIGHTED FILMS EARNINGS PER SHARE FOR THE THIRD QUARTER ENDING JULY 31 WOULD MORE THAN DOUBLE FROM THE 23 CENTS REPORTED A YEAR EARLIER THEY CAME IN AT 49 CENTS HOWEVER AS MR KHAN'S BULLISHNESS ON FUTURE INTENSIFIED AND THE STOCK TOOK OFF HIS EMPLOYER REYNOLDS KENDRICK WAS AGGRESSIVELY SELLING SHARES ON JUNE 11 WHEN FUTURE'S STOCK WAS AT 7375 THE BROKERAGE FIRM AND ITS RETAIL CLIENTS OWNED 1176255 SHARES ACCORDING TO AN AFFIDAVIT GIVEN BY MICHAEL J CHIODO REYNOLDS KENDRICK'S VICE PRESIDENT FOR FINANCE IN A SUIT FILED IN A FEDERAL COURT IN NEW YORK CITY AGAINST THE FIRM AND MR KHAN BY SHORT SELLERS IN SUBSEQUENT WEEKS FUTURE ANNOUNCED IT HAD OBTAINED A COMMITMENT LETTER FOR 125 MILLION IN FINANCING FROM A WEST COAST FINANCE COMPANY SO IT COULD BUY 700 FILMS FEATURING SUCH STARS AS CHARLIE CHAPLIN BUSTER KEATON AND LAURENCE OLIVIER ON AUG 17 FUTURE ANNOUNCED IT HAD COMPLETED THE ACQUISITION THE NEXT DAY MR KHAN RECOMMENDED AGGRESSIVE ACCUMULATION OF FUTURE SHARES HOWEVER THREE WEEKS LATER FUTURE FILED AN 8K REPORT WITH THE SEC THAT DISCLOSED THAT THE FILM PURCHASE HADN'T BEEN COMPLETED MR GORMAN SAYS CLOSING DOCUMENTS WERE SIGNED ON JULY 29 BUT THE FINANCING NEVER CAME THROUGH BY AUG 27 THE NUMBER OF FUTURE SHARES HELD BY REYNOLDS KENDRICK AND ITS RETAIL CLIENTS WAS DOWN 67 FROM JUNE TO 385728 SHARES THREE DAYS LATER ON AUG 30 THE STOCK PEAKED AT 2750 ON AUG 31 NASD HALTED TRADING QUESTIONING FUTURE'S QUALIFICATIONS FOR LISTING REYNOLDS KENDRICK'S CHAIRMAN WILLIAM STRATTON EXPLAINS THE STOCK SELLING AS PROFITTAKING BY LONGTIME FUTURE SHAREHOLDERS AS FOR THE INSTITUTIONS THAT BOUGHT ON MR KHAN'S RECOMMENDATIONS DURING THIS PERIOD THEY WERE VERY SOPHISTICATED INVESTORS NOT DUPES FOR ANYBODY MR STRATTON SAYS SEVERAL INVESTMENT PROS WERE AMONG THE BELIEVERS DANIEL LEONARD MANAGER OF INVESCO STRATEGIC TECHNOLOGY FUND BOUGHT 2000 SHARES FOR HIS PERSONAL PORTFOLIO AND 160000 FOR THE FUND BANKRUPTCYCOURT RECORDS SHOW WALTER DOWNEY A PORTFOLIO MANAGER AT FIDELITY WAS HIGH ON THE STOCK THROUGH LAST OCTOBER FIDELITY BOUGHT 105000 SHARES PIONEERING MANAGEMENT BOUGHT 145000 FUTURE SHARES BUT SKEPTICAL INVESTORS WERE SHORTING FUTURE THAT IS BETTING ON A DECLINE BY BORROWING THE STOCK AND SELLING IT STEPHEN CARLSON OF ASPEN CAPITAL IN DENVER SAID IN EARLY SEPTEMBER THAT HE SAW FUTURE AS A FRAUD OF MONUMENTAL PROPORTIONS ON SEPT 3 FUTURE'S AUDITOR ALEGNANI & CO OF DALLAS RESIGNED FUTURE ANNOUNCED THAT PRICE WATERHOUSE WOULD BE ITS NEW AUDITOR BUT A LAWYER FOR PRICE WATERHOUSE TOLD THE SEC ON OCT 1 THAT THE ACCOUNTING FIRM NEVER AGREED TO TAKE THE ACCOUNT WITH SHARES NOT TRADING PUBLICLY REYNOLDS KENDRICK TRIED TO FORCE SHORT SELLERS TO REPAY BORROWED STOCK AT A RATE OF 36 A SHARE A PRICE IT SAID IT GOT BY CHECKING WITH ITS CUSTOMERS FIVE SHORTSELLERS SUED ALLEGING THAT MR KHAN AND REYNOLDS KENDRICK HAD MANIPULATED FUTURE'S STOCK AND HAD ACCESS TO MATERIAL UNDISCLOSED INFORMATION CHARGES MR KHAN AND REYNOLDS KENDRICK DENIED ONE SUIT HAS SINCE BEEN WITHDRAWN ONE DISMISSED AND THREE ORDERED INTO ARBITRATION ON OCT 14 THE NASD DELISTED FUTURE ALLEGING THE DISSEMINATION OF ERRONEOUS AND MISLEADING INFORMATION AND THE WITHHOLDING OF MATERIAL INFORMATION MR GORMAN FUTURE'S PRESIDENT CONTENDS FUTURE WAS A VICTIM OF A BRUISING STOCKMARKET DUEL BETWEEN INVESTORS AND SHORT SELLERS WHEN THE PRICE OF THE STOCK CONTINUED TO RISE THESE SHORT SELLERS STOOD TO LOSE 75 MILLION TO 85 MILLION HE SAYS AND DROVE THE PRICE DOWN THE SEC IN SUING FUTURE AND MR BOSCO IN FEDERAL COURT IN DALLAS ALLEGED DISSEMINATION OF MISLEADING INFORMATION AND FRAUDULENT INFLATION OF THE STOCK PRICE IT SEEKS MONETARY PENALTIES AND THE RETURN OF ANY ILLEGAL TRADING PROFITS MR BOSCO MAY HAVE MADE THE AGENCY AND FUTURE ARE WORKING ON A POSSIBLE SETTLEMENT A LAWYER FOR THE SEC SAYS IT SEEKS TO BAR MR BOSCO FROM SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY ON NOV 9 FUTURE FILED FOR CHAPTER 11 LISTING ASSETS OF 222 MILLION AND LIABILITIES OF 53 MILLION ABOUT HALF OF THEM IN CLAIMS FOR STOCK OPTIONS AND WAGES FROM MR BOSCO HIS FAMILY AND COMPANY OFFICERS AND EMPLOYEES MR GORMAN SAYS FUTURE FILED BECAUSE IT COULDN'T MEET FINANCIAL OBLIGATIONS AND WANTED TO CENTRALIZE THE LITIGATION IT FACES FUTURE HAS SUED PRICE WATERHOUSE IN US BANKRUPTCY COURT IN DALLAS FOR BREACH OF CONTRACT PRICE WATERHOUSE CALLS THE SUIT NONSENSE WHAT THE FUTURE HOLDS FOR FUTURE IS UNCERTAIN MR BERLE WOULD LIKE TO CONTINUE AS ITS CELEBRITY SPOKESMAN IF THE DISPUTE OVER HIS FIVEYEAR 125 MILLION CONTRACT CAN BE RESOLVED A BERLE LAWYER SAYS MR JENSEN THE FORMER DIRECTOR SAYS HE IS TICKED OFF AT MR BOSCO BUT STILL BELIEVES THE COMPANY IS SITTING ON A GOLD MINE MR LEONARD AT INVESCO SAYS HIS FUND WILL HANG ONTO ITS 4 STAKE I THINK THEY HAVE A VALUABLE FRANCHISE WITH ALL THOSE TV STATIONS AND BILLY BOB'S HE SAYS HE EXPECTS FUTURE TO FILE A REORGANIZATION PLAN SOON FIDELITY'S MR DOWNEY WHO SAID AS LATE AS OCTOBER THAT THE FUNDAMENTALS ARE PRETTY GOOD ON THIS COMPANY NOW DECLINES TO COMMENT MR KHAN WHO HAS LEFT REYNOLDS KENDRICK AND NOW WORKS IN LOS ANGELES FOR DESERT MOUNTAIN SECURITIES OF PHOENIX REMAINS A BOOSTER I'VE SEEN NOTHING OF SUBSTANCE TO QUESTION THE CORE ASSETS THE CONTROVERSIAL BROKER SAYS HE WOULD LIKE TO SEE CURRENT MANAGEMENT OUSTED THAT WOULD CLEAN THE MUDDIED WATERS BETTER THAN ANYTHING ELSE BUT BISHOP CHEEN AN ANALYST AT PAUL KAGAN ASSOCIATES IN CARMEL CALIF SAYS THE IDEA OF BUILDING NETWORKS OUT OF LOWPOWER STATIONS HAS BEEN TRIED AND HAS DIED MANY TIMES BEFORE FUTURE ISN'T A COMPANY MR CHEEN TRACKS BUT HE SAYS THE CABLE ACT OF 1992 MANDATES ONLY THAT LOWPOWER STATIONS BE CARRIED ON CABLE SYSTEMS IN SPARSELY POPULATED AREAS WHERE THERE ISN'T A FULLPOWER STATION AVAILABLE THE COMPANY IS STILL OUT THERE PEDDLING ITS VISION A CONVENTION LAST WEEK IN MIAMI BEACH OF THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES HAD A BUSY MSTV BOOTH PASSERSBY COULD PICK UP A FEBRUARY PROGRAM SCHEDULE AND THE FIRST ISSUE COLLECTOR'S EDITION OF MAIN STREET MAGAZINE ALL ABOUT THE NASCENT NETWORK IT DESCRIBES MILTON BERLE AS CHAIRMAN OF THE NETWORK'S EXECUTIVE COMMITTEE AND MSTV AS A DIVISION OF FUTURE COMMUNICATIONS INC TRADED OVERTHECOUNTER ON THE NASDAQ SYSTEM UNDER THE STOCK SYMBOL FCMI SERGIO BOSCO CHAIRMAN AND CEO OF FUTURE TEMPORARILY STEPPED ASIDE IN OCTOBER DAVID W GORMAN PRESIDENT OF FUTURE ROBERT RIOS JR EXECUTIVE VICE PRESIDENT AND SECRETARY OF FUTURE RONALD I PALLUTH ELECTRICAL TECHNICIAN AND CONSULTANT TO FUTURE ROBERT K WILPITZ ENERGY CONSULTANT LUIS MIGUEL AGUILAR CEO OF POR CABLE TELEVISION NACIONAL OF MEXICO GERALD BEESON BANK EXECUTIVE JOINED BOARD IN SEPTEMBER REPLACING ARNE JENSEN A FORMER CBS NEWS TECHNICAL SUPERVISOR 9402020089 940202 BUSINESS BRIEF HSBC HOLDINGS PLC MARINE MIDLAND UNIT POSTS 27 RISE IN 4THPERIOD NET MARINE MIDLAND BANKS INC SAID FOURTHQUARTER PROFIT JUMPED 27 HELPED BY WIDER PROFIT MARGINS BETWEEN BORROWING AND LENDING RATES AND A DROP IN THE COST OF BAD DEBTS THE BUFFALO NY BANK WHICH HAS 18 BILLION IN ASSETS IS OWNED BY HSBC HOLDINGS PLC OF LONDON MARINE MIDLAND POSTED NET INCOME OF 454 MILLION COMPARED WITH YEAREARLIER NET OF 357 MILLION FOR THE FULL YEAR THE BANK REPORTED NET INCOME OF 1732 MILLION UP 59 FROM 1992 RESULTS OF 1092 MILLION MARINE REDUCED EXPENSES BY 11 LAST YEAR WHILE INCREASING THE SOCALLED NET INTEREST MARGIN BETWEEN BORROWING RATES AND YIELDS ON LOANS AND INVESTMENTS THE MARGIN WIDENED TO 493 PERCENTAGE POINTS IN THE FOURTH QUARTER FROM 439 PERCENTAGE POINTS IN THE FOURTH QUARTER OF 1992 THE COMPANY DIDN'T SET ASIDE A PROVISION FOR BAD DEBTS IN THE QUARTER IN THE YEAREARLIER PERIOD THE PROVISION WAS 34 MILLION FOR THE YEAR HOWEVER THE PROVISION CLIMBED TO 115 MILLION FROM 732 MILLION IN 1992 9402020088 940202 BUSINESS BRIEF MICHAEL BAKER CORP INTELCOM SUPPORT SERVICES WINS US NAVY CONTRACT MICHAEL BAKER CORP SAID ITS INTELCOM SUPPORT SERVICES INC UNIT WAS AWARDED A CONTRACT BY THE US NAVY TO PROVIDE BASE OPERATIONS SUPPORT SERVICES AT SEVERAL SITES IN HAWAII THE COMPANY SAID THE CONTRACT WHICH IS VALUED AT 88 MILLION HAS A BASE YEAR AND FOUR OPTION YEARS EACH YEAR OF THE CONTRACT IS VALUED AT ABOUT 177 MILLION MICHAEL BAKER SAID UNDER THE CONTRACT INTELCOM WILL PROVIDE FACILITY AND UTILITY MAINTENANCE POWER PLANT OPERATION FIRE AND EMERGENCY SERVICES FACILITY ENGINEERING WASTE TREATMENT AND OTHER SERVICES RELATED TO TRANSPORTATION FOOD SUPPLIES FUELS AND SECURITY AT THE NAVY'S PACIFIC MISSILE RANGE FACILITY HAWAIIAN AREA BARKING SANDS WHICH HAS SITES ON THE ISLANDS OF KAUAI OAHU AND NIIHAU MICHAEL BAKER IS AN ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES CONCERN IN PITTSBURGH 9402020086 940202 JOBS SKILLS BEFORE CREDENTIALS BY ROBERT B REICH NEARLY 50 YEARS AGO THE SPECTER OF LONGTERM MASS JOBLESSNESS UNNERVED AMERICA WORLD WAR II HAD ENDED IN TRIUMPH BUT THE OUTBREAK OF PEACE HELD ITS OWN PERILS THE GREAT DEPRESSION HAD BEEN SUBMERGED BY WAR RATHER THAN RESOLVED AND THERE SEEMED LITTLE REASON TO BELIEVE THAT 1948 WOULD LOOK MUCH DIFFERENT FROM 1938 THE RETURNING GIS IT WAS THOUGHT MUST EITHER DISPLACE THE NEW WORKERS WHO HAD RUN THE WARTIME ECONOMY OR ELSE FACE UNEMPLOYMENT THEMSELVES AS THE DEPRESSION SET IN AGAIN IT SEEMED PERFECTLY PLAIN TO EXPERTS AND ORDINARY CITIZENS ALIKE THAT PROSPECTS WERE GRIM FOR A HUGE NUMBER OF AMERICAN WORKERS YET THIS PERIOD OF APPARENTLY WELLFOUNDED PESSIMISM GAVE WAY TO AN ERA OF RAPID GROWTH AND RISING LIVING STANDARDS THE TRANSITION WAS BY NO MEANS PAINLESS BUT THE MAIN STORY STILL IS THE ENORMOUS DISCREPANCY BETWEEN THE FEARFUL EXPECTATIONS OF THE POSTWAR YEARS AND THE POSITIVE TURN THAT HISTORY ACTUALLY TOOK THE EXPLANATION SEEMS SIMPLE AMERICANS AT THE TIME HAD A VIVID PICTURE OF IMPERILED OLD JOBS AND ONLY DIM INKLINGS OF BETTER JOBS TO COME THE ECONOMY'S CAPACITY TO CREATE NEW JOBS SIMPLY EXCEEDED THE MIND'S CAPACITY TO IMAGINE THEM WE MAY BE AT SUCH A JUNCTURE ONCE AGAIN GLOBAL COMPETITION DEFENSE DOWNSIZING CORPORATE RESTRUCTURING AND TECHNOLOGICAL CHANGE HAVE PUT MANY ESTABLISHED JOBS AT RISK EVEN INFORMED AMERICANS DESPAIR THAT THERE WILL EVER BE ENOUGH GOOD JOBS FOR NEW ENTRANTS TO THE LABOR FORCE OR FOR DISPLACED WORKERS ANXIOUS VOICES WHERE ARE THE JOBS TRAINING FOR WHAT GREET PROPOSALS TO REFORM EDUCATION AND DELIVER COMPETITIVE JOB SKILLS THE FUTURE TO BE SURE IS ULTIMATELY AS UNKNOWABLE IN 1994 AS IT WAS IN 1949 BUT WE MAY BE ABLE TO USE THE LESSONS OF THE PAST AS WELL AS SOME MODEST ADVANCES IN ECONOMIC FORECASTING TO GAIN A DEGREE OF INSIGHT INTO THE JOBS OF THE FUTURE A CLEARER VIEW OF EMPLOYMENT PROSPECTS MAY PREVENT PESSIMISM FROM UNDERMINING CONCRETE MEASURES THAT WOULD MAKE THE GOOD JOBS OF THE FUTURE COME FASTER AND MORE SURELY FOR AMERICAN WORKERS ALL THE EVIDENCE POINTS TO STRONG LONGTERM GROWTH IN DEMAND FOR WORKERS WITH PROBLEMSOLVING SKILLS IN THE CLINTON ADMINISTRATION'S FIRST 11 MONTHS THE ECONOMY CREATED MORE THAN 16 MILLION PRIVATESECTOR JOBS OVER THE PAST YEAR NEARLY HALF OF THE EMPLOYMENT GROWTH HAS BEEN IN MANAGERIAL AND PROFESSIONAL JOBS THE BUREAU OF LABOR STATISTICS PREDICTS THAT THE NUMBER OF JOBS FOR TECHNICIANS WILL GROW 37 BETWEEN 1990 AND 2005 YET THESE FAMILIAR CATEGORIES ARE ONLY APPROXIMATE LABELS FOR THE SKILLCENTERED WORK THAT IS EMERGING DISTINCTIONS ARE ERODING THE OLD HIERARCHY OF MIDLEVEL MANAGERS LOWERLEVEL SUPERVISORS AND LOWSKILLED DRONES IS BLURRING INTO A BROAD CLASS OF WORKPLACE PROBLEMSOLVERS EXPERTISE AND AUTHORITY SEEP AWAY FROM THE FRONT OFFICE AND ARE DISPERSED THROUGHOUT THE PRODUCTIVE TEAM GOODS AND SERVICES ARE BECOMING LESS DISTINCT AS MORE AND MORE OF THE VALUE OF A PRODUCT IS EMBEDDED IN RELATED SERVICES DELIVERED BOTH BEFORE IT IS MANUFACTURED DESIGN PROGRAMMING PROCESS ENGINEERING AND AFTER IT IS SOLD TARGETED DISTRIBUTION CUSTOMIZED INSTALLATION TRAINING IN APPLICATIONS CREDENTIALISM IS BREAKING DOWN MANY OF THE FASTESTGROWING GOOD JOBS FACTORY TECHNICIAN DATAPROCESSOR DON'T REQUIRE A COLLEGE DEGREE BUT AS FORMAL CREDENTIALS BECOME LESS ESSENTIAL UPTODATE SKILLS BECOME EVER MORE CRUCIAL EVEN IN JOBS WHERE THE UNSKILLED COULD FORMERLY THRIVE WORKERS WITHOUT SKILLS MEANWHILE FIND THEIR OPTIONS SHRINKING MORE THAN EVER BEFORE WHAT YOU EARN DEPENDS ON WHAT YOU LEARN AMERICANS WITHOUT TRAINING BEYOND HIGH SCHOOL HAVE SUFFERED A CONTINUING DECLINE IN EARNINGS OVER THE PAST 15 YEARS HIGHSCHOOL DROPOUTS HAVE BEEN HIT EVEN HARDER WITH COLLAPSING WAGE RATES AND RISING UNEMPLOYMENT LIKE COMPARABLE PERIODS BEFORE OUR CURRENT ERA OF RAPID ECONOMIC CHANGE OPENS NEW OPPORTUNITIES EVERY AMERICAN CAN DEVELOP THE SKILLS TO MAKE IT IN THE NEW ECONOMY THE WINNERS WON'T BE LIMITED TO COLLEGE GRADUATES A RECENT STUDY BY ECONOMISTS TOM KANE AND CECILIA ROUSE FOUND THAT EVERY YEAR OF POSTSECONDARY TRAINING IN UNIVERSITIES OR COMMUNITY COLLEGES AND WHETHER LEADING TO A DEGREE OR NOT BOOSTS ANNUAL EARNING POWER BY 5 TO 10 THE GOOD JOBS OF THE FUTURE WON'T FIT NEATLY INTO OUR CURRENT CATEGORIES OF MANAGER/MANAGED OR HIGHTECH/LOWTECH EXAMPLES ABOUND THERE'S A NEW KIND OF DELIVERY TRUCK DRIVER EQUIPPED WITH A COMPUTER AND MODEM IN HER CAB SO SHE CAN TIME DELIVERIES TO EXACTLY WHEN CUSTOMERS NEED THEM AND THEN CUSTOMASSEMBLE THE COMPLEX MACHINERY SHE'S DELIVERING SHE SHARES LITTLE MORE THAN A JOB TITLE WITH THE TRUCKER OF 10 YEARS AGO SHE'S A HIGHSKILLED SERVICE TECHNICIAN AND SHE'S MAKING GOOD MONEY THROUGHOUT THE ECONOMY FAMILIARSOUNDING JOBS ARE BECOMING MORE DEMANDING AND MORE REWARDING AS JOB DESCRIPTIONS METAMORPHOSE IN 1990 JUST 18 OF THE FUNCTIONS IN A TYPICAL FORD AUTOMOBILE WERE COMPUTERCONTROLLED IN 1994 THE PROPORTION IS 82 THIS TECHNOLOGICAL SHIFT HAS PROFOUND CONSEQUENCES FOR THE NUMBER AND NATURE OF GOOD JOBS AUTO MECHANICS SKILLED IN COMPUTER DIAGNOSTICS CAN COMMAND ANNUAL SALARIES RANGING FROM 30000 TO 75000 IN THE SAME WAY ASSEMBLY WORK IS TRANSFORMED AS A NEW KIND OF FACTORY WORKER SITS BEHIND A COMPUTER PROGRAMMING AND REPROGRAMMING A ROBOT THAT DOES THE PULLING AND TWISTING THAT HUMAN BEINGS USED TO DO THE BAD NEWS ABOUT OUR CURRENT JUNCTURE IN ECONOMIC HISTORY IS REAL ENOUGH MORE AND MORE OLD JOBS ARE IMPERILED BY GLOBAL ECONOMIC INTEGRATION AND TECHNOLOGICAL CHANGE FEWER AND FEWER AMERICANS CAN COUNT ON HOLDING A SINGLE JOB THROUGHOUT THEIR CAREERS AND THE UNSKILLED FACE WORSENING ODDS FOR SUSTAINABLE PROSPERITY BUT THE GOOD NEWS IS EQUALLY REAL IF LESS OBVIOUS THE PAYOFF TO SKILLS IS SURGING TECHNOLOGICAL EVOLUTION IS SPAWNING A PROFUSION OF GOOD NEW JOBS INTEGRATED EXPANDING GLOBAL MARKETS CREATE MANY MORE OPPORTUNITIES THAN THEY CLOSE OFF AND THE SKILLS NEEDED FOR MANY OF THESE HIGHSKILL HIGHWAGE JOBS CAN BE LEARNED OFTEN THROUGH TWOYEAR ASSOCIATE'S DEGREES APPRENTICESHIP PROGRAMS AND ONTHEJOB TRAINING HARD QUESTIONS REMAIN HOW DO WE ENSURE THAT THE RIGHT KINDS OF TRAINING ARE AVAILABLE AT THE RIGHT TIME AS AMERICANS STRUGGLE WITH WORKFORCE TRANSITIONS HOW DO WE BUFFER THE SHOCK OF CHANGE FOR WORKERS WHO NOW DEPEND ON VULNERABLE JOBS AND INDUSTRIES THE CLINTON ADMINISTRATION IS WORKING HARD TO ANSWER THESE QUESTIONS BUT ONE QUESTION TRAINING FOR WHAT IS EASIER TO ANSWER THAN IT SEEMS THE EVIDENCE SHOWS THAT SKILLS PAY OFF THE EVIDENCE SHOWS THAT AMERICAN WORKERS CAN LEARN TRAINING FOR WHAT FOR THE HIGHSKILL WORK TAKING SHAPE ALL AROUND US TODAY AMERICA'S ECONOMY IS RACING INTO THE FUTURE THERE IS NO EXCUSE FOR LEAVING A SINGLE CITIZEN BEHIND MR REICH IS THE US SECRETARY OF LABOR 9402020085 940202 BUSINESS BRIEF GTE CORP LOSS OF 466 MILLION POSTED LARGELY BECAUSE OF A CHARGE GTE CORP STAMFORD CONN REPORTED A FOURTHQUARTER LOSS OF 466 MILLION LARGELY DUE TO A PREVIOUSLY ANNOUNCED 12 BILLION CHARGE TO RESTRUCTURE AND SLASH 13 OF ITS WORK FORCE THE LOSS PER SHARE WAS 50 CENTS AND COMPARES WITH NET INCOME OF 417 MILLION OR 44 CENTS A SHARE A YEAR EARLIER THE 1993 QUARTER ALSO INCLUDED A GAIN OF 91 MILLION OR 10 CENTS A SHARE FROM THE SALE OF TELEPHONE PROPERTIES REVENUE FOR THE QUARTER SLIPPED 14 TO 506 BILLION FROM 513 BILLION AS GTE'S PHONE BUSINESS CUT RATES AMID PRICE WARS AND FEDERAL PURCHASES OF MOBILE COMMUNICATION EQUIPMENT DECLINED FOR THE FULL YEAR GTE POSTED NET INCOME OF 900 MILLION OR 93 CENTS A SHARE COMPARED WITH A 1992 LOSS OF 754 MILLION OR 86 CENTS A SHARE 9402020084 940202 BUSINESS BRIEF MONSANTO CO CHEMICAL CONCERN TO SELL PYRIDINE PESTICIDE BUSINESS MONSANTO CO ST LOUIS SAID IT SIGNED A LETTER OF INTENT TO SELL ITS PYRIDINE PESTICIDE BUSINESS TO ROHM & HAAS CO THE CHEMICAL COMPANIES DIDN'T DISCLOSE TERMS MONSANTO USES THE PYRIDINE CHEMICAL FAMILY TO MAKE DIMENSION WHICH IS SOLD IN THE US TO KILL CRABGRASS THE CHEMISTRY IS ALSO PART OF AN HERBICIDE CALLED VISOR WHICH IS USED IN ORCHARDS AND OLIVE GROVES IN SPAIN IN ADDITION PYRIDINES ARE USED TO MAKE A FUNGICIDE A MONSANTO SPOKESMAN SAID IT IS SELLING THE BUSINESS AS PART OF A PLAN TO FOCUS ITS HERBICIDE RESEARCH ON MAJOR CROPS SUCH AS CORN WHEAT AND SOYBEANS A MONSANTO EXECUTIVE HOWEVER SAID IN A PUBLISHED REPORT IN JANUARY THAT DIMENSION WASN'T AS PROFITABLE AS THE COMPANY HAD EXPECTED PHILADELPHIABASED ROHM & HAAS SAID THE PROGRAM FITS INTO ITS LINEUP OF HERBICIDE PRODUCTS BECAUSE IT CONCENTRATES ON NICHE MARKETS 9402020083 940202 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 310 60 TO 119 DAYS 313 120 TO 159 DAYS 320 160 TO 179 DAYS 324 180 TO 249 DAYS 333 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 315 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 270 SIX MONTHS 305 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 307 ONE MONTH 317 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 308 90 DAYS 313 120 DAYS 318 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 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 589 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 689 60 DAYS 696 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 686 60 DAYS 696 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 9402020082 940202 BUSINESS BRIEF MERISEL INC COMPUTERLAND OPERATION ACQUISITION IS COMPLETED MERISEL INC SAID IT COMPLETED ITS ACQUISITION OF COMPUTERLAND CORP'S FRANCHISE AND DISTRIBUTION OPERATION IN A TRANSACTION VALUED AT AS MUCH AS 110 MILLION MERISEL AN EL SEGUNDO CALIF DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE PRODUCTS TO COMPUTER RESELLERS SAID IT PAID ABOUT 80 MILLION IN CASH FOR THE OPERATION OF WHICH 20 MILLION WILL BE CONVERTED TO MERISEL COMMON STOCK AT A PRICE OF 1813 A SHARE MERISEL WHICH ANNOUNCED THE PROPOSED TRANSACTION IN SEPTEMBER SAID IT COULD PAY AS MUCH AS 30 MILLION MORE BASED ON FUTURE REVENUE AND OTHER FACTORS THE OPERATION COMPUTERLAND SOLD TO MERISEL HAS ACCOUNTED FOR ROUGHLY HALF OF COMPUTERLAND'S REVENUE THE CLOSELY HELD COMPANY BASED IN PLEASANTON CALIF SOLD THE BUSINESS TO RAISE MONEY AND BECAUSE THE COMPANY WANTS TO FOCUS ON SERVICING ITS LARGEST ACCOUNTS MERISEL NOW GETS THE RIGHTS TO THE COMPUTERLAND NAME IN THE US COMPUTERLAND SAID IT WILL ANNOUNCE A NEW NAME IN MARCH BUT RETAINS THE RIGHTS TO THE COMPUTERLAND NAME ABROAD 9402020081 940202 BUSINESS BRIEF SCHLUMBERGER LTD INVESTMENT PLAN OF 7 BILLION OVER FIVE YEARS IS OUTLINED OILSERVICES GIANT SCHLUMBERGER LTD SAID IT PLANS TO INVEST 7 BILLION OVER FIVE YEARS ON EQUIPMENT NEWPRODUCT DEVELOPMENT AND STREAMLINING SPEAKING TO FINANCIAL ANALYSTS CHAIRMAN EUAN BAIRD ALSO SAID THE COMPANY EXPECTS TO KEEP ABOUT 1 BILLION LIQUID IN ORDER TO SUSTAIN ITS INVESTMENTS AND TO REACT QUICKLY WHEN A NEW OPPORTUNITY TO ENHANCE OUR BUSINESS ARISES MR BAIRD SAID THE NEW YORKBASED COMPANY WILL SPEND 4 BILLION ON NEW OILFIELD EQUIPMENT 15 BILLION ON OILFIELDPRODUCT DEVELOPMENT SOFTWARE AND COMMUNICATIONS AND 15 BILLION ON STREAMLINING SOME PRODUCTS AND ON ACQUISITIONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SCHLUMBERGER CLOSED AT 59 A SHARE DOWN 0375 9402020080 940202 REVIEW & OUTLOOK EDITORIAL CHOICE'S RAINBOW COALITION A QUIET REVOLUTION IS STIRRING IN THE SCHOOL REFORM MOVEMENT NOW HISPANICS ARE JOINING WITH BLACK AND ANGLO PARENTS IN WANTING A GREATER SAY IN THE TEACHING OF THEIR CHILDREN FROM CHARTER SCHOOLS NOW OPERATING IN CALIFORNIA TO A NEW VOUCHER PROGRAM THAT'S BECOME LAW IN PUERTO RICO HISPANIC PARENTS ARE INCREASINGLY SAYING YA BASTA HAD ENOUGH THE REDHOT CENTER OF THIS ISSUE RIGHT NOW IS ARIZONA EDUCATION REFORMERS NEED ONLY A HANDFUL OF VOTES TO PASS A SWEEPING EDUCATION REFORM BILL IT WOULD INCLUDE A PILOT PROGRAM OF SCHOOL VOUCHERS FOR 2000 ARIZONA CHILDREN THE VOUCHER PROVISION IS OPPOSED BY LIBERAL DEMOCRATS AND A HANDFUL OF REPUBLICANS SIDING WITH THE STATE TEACHERS UNION HISPANIC DEMOCRATS IN THE LEGISLATURE ARE THE SWING VOTE THEY'RE SYMPATHETIC TO SUCH IDEAS AS SCHOOL CHOICE AND CHARTER SCHOOLS BUT ARE UNDER ENORMOUS PRESSURE FROM THEIR PARTY TO SIDE WITH THE PRODUCERS OF EDUCATION RATHER THAN THE CONSUMERS IN THE NEXT FEW DAYS THEY HAVE TO DECIDE BETWEEN THE STATUS QUO OR ENHANCING CHOICES FOR THEIR COMMUNITY NATIONWIDE POLLS SHOW THAT A CLEAR MAJORITY OF HISPANICS FAVOR SCHOOL CHOICE IT IS OUR KIDS WHO SUFFER THE MOST FROM FAILING PUBLIC SCHOOLS SAYS TEXAS STATE REP HUGO BERLANGA AN HISPANIC DEMOCRAT LAST YEAR HE SPONSORED A PILOT VOUCHER BILL THAT CAME WITHIN A SINGLE VOTE OF PASSING THE TEXAS HOUSE IN CALIFORNIA HISPANIC PARENTS PROVIDED MAJOR SUPPORT FOR A NEW LAW THAT ALLOWS PARENTS AND TEACHERS TO FORM THEIR OWN INDEPENDENT SCHOOLS WHICH RECEIVE PUBLIC MONEY BUT ARE EXEMPT FROM MANY STIFLING STATE RULES AND REGULATIONS HISPANIC PARENTS SAY PUBLIC SCHOOLS DON'T PROVIDE ENOUGH INDIVIDUALIZED INSTRUCTION AND OFTEN ISOLATE THEIR CHILDREN IN POORLY DESIGNED BILINGUAL CLASSES THEY OFTEN LEAVE ELEMENTARY SCHOOL WITH POOR ENGLISH SKILLS AND ARE THEN SHUNTED INTO CLASSES FOR SLOW LEARNERS CLEMENTINA DURON IS THE PRINCIPAL OF THE JINGLETOWN CHARTER MIDDLE SCHOOL IN OAKLAND CALIF SHE SAYS JINGLETOWN STUDENTS ARE BECOMING PROFICIENT IN BOTH LANGUAGES BECAUSE PARENTS HELPED HIRE THE BILINGUAL TEACHERS AND AGREED TO BOTH VOLUNTEER AT THE SCHOOL AND ATTEND MONTHLY MEETINGS PARENTS WHO FEEL TEACHERS WILL LISTEN TO THEIR CONCERNS BECOME MORE INTERESTED IN THE SUCCESS OF THEIR CHILDREN SAYS JOSEPH SAMANIEGO A PARENT WHO HELPED SET UP THE JINGLETOWN CHARTER SCHOOL IN PUERTO RICO WHICH LAST YEAR CREATED THE SECOND SCHOOL VOUCHER PROGRAM COVERING US CITIZENS THE PRELIMINARY RESULTS ARE ENCOURAGING EDUCATION SECRETARY JOSE ARSENIO TORRES SAYS IT'S A MYTH THAT SCHOOL CHOICE WILL LEAD TO THE COLLAPSE OF PUBLIC SCHOOLS INSTEAD THE COMPETITION WILL FORCE THEM TO IMPROVE MR TORRES NOTES THAT MORE PARENTS HAVE USED THE VOUCHERS TO TRANSFER THEIR CHILDREN TO NEW SELFGOVERNING CHARTER SCHOOLS THAN TO PRIVATE SCHOOLS IT'S EVIDENT THAT A LOT OF HISPANIC PARENTS HAVE CONCLUDED THAT SOME PUBLIC SCHOOLS CAN'T OR WON'T PROVIDE THEIR CHILDREN WITH THE TOOLS THEY'RE GOING TO NEED ONCE THEY GO OUT INTO THE US'S HIGHLY COMPETITIVE WORK FORCE IT'S ALSO EVIDENT THAT SOME HISPANICS THINK THE ANYTHINGGOES VALUES SYSTEM THAT'S TOLERATED OR EVEN PROMOTED IN MANY AMERICAN PUBLIC SCHOOLS IS SOMETHING THEY'D AS SOON NOT BE PART OF EVENTUALLY EVEN THE POLITICIANS MAY BEGIN TO NOTICE THAT RALLIES FOR EDUCATIONAL REFORM FROM CALIFORNIA TO NEW YORK CITY TO TEXAS TO ARIZONA HAVE MORE AND MORE HISPANIC FACES 9402020079 940202 BUSINESS BRIEF NORTH AMERICAN BIOLOGICALS INC FOURTHQUARTER NET INCOME OF 14 MILLION TO BE POSTED NORTH AMERICAN BIOLOGICALS INC EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF ABOUT 14 MILLION OR ABOUT 10 CENTS A SHARE SAID DAVID J GURY PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE THE MIAMI SUPPLIER OF BLOOD PLASMA HAD A NET LOSS OF 514000 OR FOUR CENTS A SHARE A YEAR EARLIER NORTH AMERICAN BIOLOGICALS SHARES SOARED 19 ON THE NEWS UP 8125 CENTS TO 51875 IN NASDAQ STOCK MARKET TRADING FOR THE FULL YEAR THE COMPANY EXPECTS TO POST ABOUT 35 MILLION IN NET INCOME OR ABOUT 26 CENTS A SHARE COMPARED WITH A LOSS OF 573000 OR FOUR CENTS A SHARE IN 1992 MR GURY SAID IN AN INTERVIEW SALES FOR THE FOURTH QUARTER ARE EXPECTED TO BE ABOUT 298 MILLION COMPARED WITH 224 MILLION A YEAR EARLIER FOR THE YEAR NORTH AMERICAN BIOLOGICALS EXPECTS TO REPORT ABOUT 1016 MILLION IN SALES COMPARED WITH 824 MILLION IN 1992 9402020078 940202 TEXAS JOURNAL WINNERS & LOSERS DALLAS OFFICIALS MANAGED TO ARRANGE LIABILITY INSURANCE FOR A COWBOY VICTORY PARADE DESPITE THE MAYHEM THAT SULLIED LAST YEAR'S SUPER BOWL CELEBRATION SPACEAGE DOCS PHYSICIANS AT THE JOHNSON SPACE CENTER NEAR HOUSTON PERFORMED EYE EXAMS ON FIVE PATIENTS IN COLORADO VIA A NEW NASA SATELLITE DALLAS PIGS THE CITY COUNCIL PASSED AN ORDINANCE BANNING PEOPLE FROM SLAUGHTERING ANIMALS IN THEIR YARDS ALAMODOME SAN ANTONIO'S SPIFFY NEW COVERED STADIUM LOST 17 MILLION IN ITS FIRST FOUR MONTHS MUCH WORSE THAN CITY LEADERS PREDICTED FISHNAPPERS THE FBI IS INVESTIGATING THE THEFT OF A MILLION YOUNG HYBRID CATFISH FROM SPAWNING PONDS IN BRAZORIA COUNTY TERESA RODRIGUEZ FEDERAL AUTHORITIES PLAN TO AUCTION MORE THAN 1 MILLION WORTH OF JEWELRY FURS AND A RANCH TO HELP PAY OFF THE DEBTS OF THIS PROMINENT HOUSTON BUSINESSWOMAN 9402020077 940202 BUSINESS BRIEF REEBOK INTERNATIONAL LTD FOURTHPERIOD NET SIDESTEPS DROP IN US FOOTWEAR SALES REEBOK INTERNATIONAL LTD SIDESTEPPING A SHARP DECLINE IN US FOOTWEAR SALES POSTED FOURTHQUARTER NET INCOME OF 507 MILLION OR 59 CENTS A SHARE COMPARED WITH OPERATING PROFIT OF 498 MILLION A YEAR EARLIER THE 1992 FOURTHQUARTER RESULTS INCLUDED A CHARGE FROM ASSET SALES YIELDING A NET LOSS OF 677 MILLION OR 74 CENTS A SHARE REVENUE FELL TO 6026 MILLION IN THE LATEST QUARTER COMPARED WITH 660 MILLION A YEAR EARLIER PAUL FIREMAN CHAIRMAN AND CHIEF EXECUTIVE OF THE STOUGHTON MASS COMPANY ATTRIBUTED THE DECLINE IN PART TO A 23 DROP IN US FOOTWEAR SALES 9402020076 940202 BUSINESS BRIEF EATON CORP FOURTHQUARTER NET FELL 33 DUE TO RESTRUCTURING CHARGE EATON CORP REPORTED A 33 DROP IN FOURTHQUARTER PROFIT DUE TO A RESTRUCTURING CHARGE RELATED TO ITS 11 BILLION ACQUISITION OF WESTINGHOUSE ELECTRIC CORP'S DISTRIBUTION AND CONTROL BUSINESS NET INCOME WAS 26 MILLION OR 36 CENTS A SHARE DOWN FROM 39 MILLION OR 57 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A CHARGE OF 55 MILLION CALCULATED BEFORE INCOME TAX CREDITS FOR COSTS RELATED TO THE ACQUISITION OF WESTINGHOUSE'S DISTRIBUTION AND CONTROL BUSINESS EATON CLOSED THAT TRANSACTION ON MONDAY AND ALSO SAID IT SOLD SOME OF ACQUIRED WESTINGHOUSE ASSETS TO THOMAS & BETTS CORP TO SATISFY FEDERAL ANTITRUST CONCERNS ON AN OPERATING BASIS HOWEVER EATON EARNED 64 MILLION OR 90 CENTS A SHARE MAINLY REFLECTING STRONG RESULTS IN THE COMPANY'S VEHICLES COMPONENTS BUSINESS WHICH INCLUDES THE MANUFACTURE OF TRANSMISSION SYSTEMS SUSPENSIONS AND BRAKES THE LATEST QUARTER'S NET INCOME ALSO INCLUDED THE EFFECT OF A 4 MILLION CHARGE RELATED TO A DEBENTURE REDEMPTION CLEVELANDBASED EATON SAID SALES ROSE TO 112 BILLION FROM 103 BILLION 9402020075 940202 TEXAS JOURNAL LETTERS TO THE EDITOR INSURERS SAY WORKERS' COMP WORKS CONTRARY TO THE CONCLUSION REACHED IN THE JOURNAL'S ARTICLE ON JAN 19 WORKERS' COMP DID THE REFORMS HELP THE NEW WORKERS' COMPENSATION LAW IS WORKING WELL FOR MOST TEXAS EMPLOYERS AND WORKERS FOR EVIDENCE YOU NEED LOOK NO FURTHER THAN THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SURVEY MENTIONED IN THE ARTICLE ITSELF ACCORDING TO THAT SURVEY 505 OF SMALL BUSINESSES SAW THEIR WORKERS' COMPENSATION PREMIUMS REMAIN THE SAME OR DECLINE AND OF THOSE THAT REPORTED AN INCREASE MORE THAN TWOTHIRDS SAW CHANGES OF 10 OR LESS THIS REPRESENTS A DRAMATIC IMPROVEMENT OVER TWO YEARS AGO WHEN ANNUAL INCREASES OF 50 OR MORE WERE COMMONPLACE EVEN BETTER RESULTS MAY BE IN STORE FOR INSTANCE TOM WEEKLY A MCALLEN SMALLBUSINESS MAN EXEMPLIFIED IN THE ARTICLE AS NOT BENEFITING FROM THE LAW TOLD ME THAT HIS 1994 PREMIUMS HAVE DECLINED 20 IN ADDITION HE NOW SAYS BOTH WORKERS AND BUSINESSES ARE COMING OUT AHEAD UNDER THE LAW AND TERMS IT A GOOD DEAL ALL AROUND UNLESS YOU'RE A LAWYER THE ARTICLE ALSO CASTS ONLY PARTIAL LIGHT ON THE TREATMENT OF INJURED WORKERS IT SUGGESTS THAT THEY MUST GO IT ALONE IN SETTLING CLAIMS DISPUTES YET IT FAILS TO REPORT THAT ACCORDING TO THE TEXAS WORKERS' COMPENSATION COMMISSION 90 OF WORKERS' COMP CLAIMS NOW ARE HANDLED WITH NO NEED FOR DISPUTE RESOLUTION COMPARED WITH 60 BEFORE THE REFORMS THE FACT IS THAT UNDER THE NEW LAW EMPLOYERS OF ALL SIZES WHO HAVE WORKERS' COMP COVERAGE ARE BEGINNING TO REALIZE SAVINGS MOREOVER THE INJUREDONTHEJOB EMPLOYEES WHO WORK FOR THEM ARE RECEIVING GREATER BENEFITS MORE SPEEDILY AND WITH FEWER HASSLES THAN BEFORE THAT SOUNDS LIKE AN IMPROVEMENT TO ME 9402020074 940202 TECHNOLOGY BRIEF MYLAN LABORATORIES INC COMPANY GETS APPROVAL TO MARKET ANXIETY DRUG MYLAN LABORATORIES INC PITTSBURGH SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ALPRAZOLAM TABLETS A GENERIC VERSION OF UPJOHN CO'S XANAX USED TO TREAT ANXIETY RONALD NORDMANN ANALYST AT PAINEWEBBER INC NOTED THAT THE FDA HAD ALREADY APPROVED ABOUT 10 OTHER GENERIC VERSIONS OF XANAX AND MARKET PRICES FOR THE DRUGS WHICH ARE MINOR TRANQUILIZERS ARE COLLAPSING IN OCTOBER MYLAN BECAME THE FIRST GENERICDRUG COMPANY TO WIN FDA APPROVAL TO MAKE AND MARKET CIMETIDINE THE GENERIC EQUIVALENT OF SMITHKLINE BEECHAM PLC'S TAGAMET ULCER DRUG BUT MYLAN DIDN'T HAVE THE ADVANTAGE OF BEING THE FIRST TO MARKET THE GENERIC VERSION OF XANAX MR NORDMANN SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MYLAN SHARES ROSE 50 CENTS TO 2425 9402020073 940202 BUSINESS BRIEF NORDSON CORP STRONG INCREASE IN EARNINGS EXPECTED FOR FIRST QUARTER NORDSON CORP EXPECTS BOOMING US DEMAND FOR ITS SPECIALIZED MACHINERY COMBINED WITH SOME IMPROVEMENT ABROAD TO PRODUCE SHARPLY HIGHER EARNINGS FOR THE FISCAL FIRST QUARTER WILLIAM P MADAR PRESIDENT AND CHIEF EXECUTIVE SAID AMERICAN MANUFACTURERS ARE MAKING STRATEGIC INVESTMENTS IN MODERNIZATION PROJECTS MR MADAR SAID THEY'RE DOING THE KIND OF THINGS THAT COMPANIES DO WHEN THEY EXPECT A LENGTHY PERIOD OF GOOD DEMAND FOR THEIR PRODUCTS OFFICIALS OF NORDSON BASED IN WESTLAKE OHIO DECLINED TO MAKE SPECIFIC EARNINGS PROJECTIONS BUT MR MADAR IN AN INTERVIEW DIDN'T QUARREL WITH ANALYSTS' FORECASTS OF AN EARNINGS RISE OF ABOUT 20 FOR THE QUARTER ENDED JAN 31 ANALYST ESTIMATES FOR QUARTER AVERAGE 42 CENTS A SHARE UP FROM OPERATING EARNINGS OF 67 MILLION OR 35 CENTS A SHARE A YEAR EARLIER ON SALES OF 1003 MILLION THE YEAREARLIER FIGURE EXCLUDES AN EXTRAORDINARY CHARGE OF 25 CENTS A SHARE NET FOR THE QUARTER WAS 19 MILLION OR 10 CENTS A SHARE 9402020072 940202 MARKETING BRIEF COCACOLA CO BEVERAGE CONCERN REDESIGNS CAN FOR ITS CLASSIC SOFT DRINK COCACOLA CO HAS REDESIGNED THE CAN FOR COCACOLA CLASSIC THE NEW CAN FEATURES TWO DRAWINGS OF THE CONTOURED COKE BOTTLE A FAMILIAR TRADEMARK FOR THE BRAND THAT COKE WANTS TO CAPITALIZE ON INDUSTRY EXECUTIVES HAVE SAID THE ATLANTA COMPANY IS GRADUALLY ROLLING OUT THE CAN WITH PLANS FOR NATIONWIDE DISTRIBUTION BY THE MIDDLE OF THE YEAR A SPOKESWOMAN SAID COKE WOULDN'T PROVIDE FURTHER DETAILS SOFTDRINK EXECUTIVES HAVE SAID THEY ARE SPIFFING UP THEIR PACKAGES THIS YEAR AND INTRODUCING LOTS OF PRODUCTS AS PART OF AN EFFORT TO REVIVE CONSUMER INTEREST IN WHAT HAS BEEN A SLOWING DOMESTIC SOFTDRINK MARKET LAST MONTH PEPSICO INC CHANGED ITS DIET PEPSI LABEL AND THE DESIGN FOR ITS MULTIPACK CARDBOARD BOXES FOR OTHER BIG BRANDS 9402020071 940202 BUSINESS BRIEF MATTEL INC TOY MAKER SAYS IT PREPAID 100 MILLION OF 1069 DEBT MATTEL INC SAID IT PREPAID 100 MILLION OF THE HIGHINTEREST DEBT IT ASSUMED IN LAST YEAR'S ACQUISITION OF FISHERPRICE INC AND WILL TAKE A 147 MILLION CHARGE IN 1993'S FOURTHQUARTER EARNINGS TO REFLECT A PREPAYMENT PENALTY AND OTHER COSTS THE EL SEGUNDO CALIF TOY MAKER SAID THE DEBT THAT WAS PREPAID CARRIED A 1069 INTEREST RATE GIVING MATTEL SIGNIFICANT SAVINGS IN FUTURE INTEREST EXPENSES PREPAYMENT FUNDS CAME FROM MATTEL'S YEAREND CASH POSITION OF APPROXIMATELY 500 MILLION THE COMPANY SAID IN 1992'S FOURTH QUARTER MATTEL REPORTED NET INCOME OF 357 MILLION ON SALES OF 511 MILLION HOWEVER A MATTEL SPOKESMAN SAID QUARTERLY EARNINGS TO BE REPORTED NEXT WEEK WILL RESTATE THE 1992 PERIOD TO GIVE PROFORMA EFFECT TO THE 11 BILLION ACQUISITION OF FISHERPRICE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MATTEL COMMON CLOSED AT 2225 OFF 50 CENTS ON VOLUME OF 613100 SHARES 9402020070 940202 TEXAS JOURNAL LETTERS TO THE EDITOR RATE WAR BRINGS BACK NONSUBSCRIBERS YOUR ARTICLE ON WORKERS' COMPENSATION REFORM WAS COMPREHENSIVE YOU STATE HOWEVER THAT THE 1 BILLION DECLINE IN WORKERS' COMPENSATION PREMIUMS STATEWIDE WAS CAUSED BY LARGE DEDUCTIBLES THIS IS TRUE ONLY TO A SMALL DEGREE AND THE PHENOMENON ENDED WHEN THE CURRENT RATE WAR BROKE OUT LAST SUMMER AND FALL WITH UPFRONT PREMIUM DISCOUNTS OF AS MUCH AS 40 MOST CUSTOMERS HAVE JETTISONED DEDUCTIBLES AND NONSUBSCRIBERS ARE REENTERING THE SYSTEM COMPETITION IS NOT PERMITTING INSURANCE COMPANIES TO RECOUP LOSSES FROM PRIOR YEARS THERE ARE TOO MANY HUNGRY INSURANCE COMPANIES WILLING TO UNDERWRITE AT CURRENT PROJECTED LOSSES AND COSTS EMPLOYERS WITH 20 OR MORE NONOFFICETYPE WORKERS WITH AVERAGE RECORDS ARE SEEING RATES AT LEAST 20 BELOW LAST YEAR'S AND PROBABLY 40 BELOW THE RATES IN 1990 THIS 1 BILLION SAVING IS MONEY COMING RIGHT OUT OF THE POCKETS OF THE PLAINTIFFS BAR AND THEREBY OUT OF THE POCKETS OF CAMPAIGN FUNDS OF OUR LEGISLATURE AND JUDGES THEREFORE LOOK FOR ACTION IN OUR NEXT SESSION OF THE LEGISLATURE TO REMEDY THE PROBLEM THEIR SOLUTION WILL NOT BE GOOD FOR TEXAS BUSINESS AND IT WILL NOT BE GOOD FOR THE WORKERS UPON WHOM THEY DEPEND FOR JOBS 9402020069 940202 BUSINESS BRIEF A+ COMMUNICATIONS INC BIG EXPANSION IN CAROLINAS IS SET WITHIN NEXT 3 MONTHS A+ COMMUNICATIONS INC SAID IT PLANS TO EXPAND ITS PAGINGNETWORK COVERAGE IN NORTH CAROLINA AND SOUTH CAROLINA WITHIN THE NEXT THREE MONTHS ELLIOTT H SINGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT BECAUSE THE PAGING COMPANY REACHED A BREAKEVEN POINT IN ITS OPERATING CASH FLOW IN THOSE TWO STATES IT WILL NOW WORK ON INCREASING THE FOOTPRINT OF ITS SERVICES THERE WE PLAN TO HAVE COVERAGE FROM THE MOUNTAINS TO THE SEA WITHIN THE NEXT 90 DAYS MR SINGER SAID SERVICE WILL BE EXPANDED FROM LUMBERTON AND WILMINGTON NC TO CHARLESTON AND HILTON HEAD SC FOR THE FOURTH QUARTER THE NASHVILLE TENN CONCERN EXPECTS TO REPORT A NET LOSS OF ABOUT 65000 OR ONE CENT A SHARE COMPARED WITH A NET LOSS OF 723000 OR 23 CENTS A SHARE A YEAR EARLIER 9402020068 940202 WHAT'S NEWS BUSINESS AND FINANCE VIACOM AND QVC EACH INCREASED SLIGHTLY THEIR OFFERS FOR PARAMOUNT MOMENTS BEFORE THE DEADLINE QVC RAISED THE CASH PORTION OF ITS OFFER TO 104 A SHARE FROM 92 BUT REDUCED THE AMOUNT OF QVC STOCK IN THE BID VIACOM LEFT THE CASH PORTION OF ITS OFFER UNCHANGED AT 107 A SHARE BUT BOOSTED THE VALUE OF SECURITIES BEING OFFERED MANY TRADERS SAID THE CONTEST WAS TOO CLOSE TO CALL ALTHOUGH SEVERAL SAID VIACOM STILL RETAINED A SLIGHT EDGE A HEALTHY RISE IN ORDERS HELPED THE MANUFACTURING SECTOR EXPAND AGAIN IN JANUARY ACCORDING TO A SURVEY OF PURCHASING MANAGERS BUT THE GROWTH BROUGHT ALONG NEW HINTS OF INFLATION BOND PRICES PLUNGED ON THE STRONG MANUFACTURING ACTIVITY REPORT THE TREASURY'S 30YEAR ISSUE LOST OVER 1 POINT AND ITS YIELD WAS 631 THE DOW JONES INDUSTRIALS FELL 1435 TO 396401 THE FEDERAL RESERVE BOARD'S DAVID MULLINS RESIGNED AS VICE CHAIRMAN THE MOVE COINCIDES WITH THE END OF WAYNE ANGELL'S TERM ALLOWING CLINTON TO FILL TWO OF THE FED'S SEVEN SEATS AS IT IS DECIDING WHEN AND HOW MUCH TO RAISE SHORTTERM INTEREST RATES CLEANAIR REGULATORS IN THE NORTHEAST VOTED IN FAVOR OF ADOPTING STRINGENT CALIFORNIASTYLE VEHICLEEMISSIONS RULES THAT WOULD IN EFFECT REQUIRE THE SALE OF ELECTRIC CARS DEALING A SETBACK TO THE AUTOMOBILE INDUSTRY PHILIP MORRIS SUED SAN FRANCISCO TO TRY TO OVERTURN ONE OF THE NATION'S TOUGHEST ANTISMOKING ORDINANCES RJR NABISCO POSTED A FOURTHQUARTER LOSS OF 461 MILLION LARGELY REFLECTING A CHARGE FOR WORKFORCE CUTS TWO CONTINENTAL BANK DIRECTORS BOUGHT SHARES IN THE COMPANY DURING TALKS THAT LED TO THE PROPOSED 19 BILLION ACQUISITION BY BANKAMERICA TV BROADCASTERS ARE EXPECTED TO ASK CONGRESS TO EXPAND THE WAYS THEY CAN USE THEIR SPECTRUM INCLUDING SENDING DATA TO LAPTOP COMPUTERS ICN SAID SHAREHOLDERS OVERWHELMINGLY VOTED TO BACK MILAN PANIC REBUFFING A 10MONTH CAMPAIGN BY RAFI KHAN TO OUST THE CHAIRMAN THE SEC IS INVESTIGATING WHETHER TO TIGHTEN DISCLOSURE STANDARDS ON CERTAIN TRIPLEARATED MORTGAGE ISSUES OIL PRICES JUMPED ON REPORTS THAT BITTER COLD WEATHER WILL PLAGUE MUCH OF THE COUNTRY THROUGH NEXT WEEK BELL ATLANTIC RESOLVED KEY ISSUES ABOUT ITS PLANNED PURCHASE OF TCI AND HOPES FOR A PACT WITHIN TWO WEEKS MONTGOMERY WARD AGREED TO ACQUIRE LECHMERE AN APPLIANCE AND CONSUMERELECTRONICS RETAILER KODAK'S NET INCOME DROPPED 33 FOR THE FOURTH QUARTER BUT OPERATING EARNINGS ROSE BECAUSE OF COST CUTTING COMPAQ IS EXPECTED TO UNVEIL NEXT WEEK ITS FIRST SUBNOTEBOOK COMPUTER FOR ABOUT 1000 LESS THAN ITS RIVALS THE NOMINEE TO HEAD THE FDIC RICKI TIGERT WON STRONG SUPPORT FROM SENATE BANKING COMMITTEE MEMBERS PEPSICO POSTED A 67 GAIN IN FOURTHQUARTER PROFIT REFLECTING A YEARAGO CHARGE AND STRONGER DOMESTIC SNACKFOOD AND RESTAURANT SALES TENNECO POSTED FOURTHQUARTER EARNINGS OF 150 MILLION COMPARED WITH A YEARAGO LOSS AND SAID IT ISN'T PLANNING TO SELL ITS CASE DIVISION BONDS LEHMAN BROTHERS TREASURY INDEX 560011 OFF 4687 COMMODITIES OIL 1592 A BARREL UP 73 CENTS DOW JONES FUTURES INDEX 14312 UP 097 SPOT INDEX 13054 UP 081 DOLLAR 10770 YEN OFF 10 17320 MARKS OFF 00025 9402020067 940202 PARAMOUNT BIDS RAISED SLIGHTLY BY RIVAL SUITORS VIACOM ADDING SECURITIES IS SAID TO RETAIN EDGE QVC BOOSTS CASH OFFER BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN A DRAMATIC SHOWDOWN MOMENTS BEFORE THE FINAL BIDDING DEADLINE RIVALS VIACOM INC AND QVC NETWORK INC EACH MADE SMALL INCREASES IN THEIR TAKEOVER BIDS FOR PARAMOUNT COMMUNICATIONS INC ALTHOUGH SEVERAL TAKEOVERSTOCK TRADERS SAID VIACOM RETAINED A SLIGHT EDGE IN THE BIDDING THERE WAS NO KNOCKOUT BLOW AND OTHER TRADERS SAID IT WAS TOO EARLY TO DETERMINE WHICH OF THE THE COMPLEX CASHANDSTOCK BIDS WOULD PREVAIL NO ONE HAS EMERGED AS A CLEAR WINNER SAID JESSICA REIF AN ANALYST AT OPPENHEIMER & CO INVESTORS HAVE UNTIL FEB 14 TO DECIDE WHICH BID TO SELECT AND IT APPEARED POSSIBLE THAT NEITHER BIDDER WOULD GAIN THE 501 MAJORITY OF PARAMOUNT STOCK NEEDED TO WIN THE CONTEST UNDER BIDDING GROUND RULES SET BY PARAMOUNT AT THAT POINT THOSE BIDDING RULES WOULD LAPSE AND BIDS COULD RESUME QVC'S BID APPEARED TO BE HIGHER WITH A VALUE OF ROUGHLY 103 BILLION OR 86 A SHARE WHILE VIACOM'S BID HAD A VALUE OF ROUGHLY 10 BILLION OR 83 A SHARE HOWEVER VALUATIONS VARIED WIDELY BASED ON TRADERS' EXPECTATIONS OF WHERE THE BIDDERS' STOCKS WOULD TRADE IF THEY WON WHILE QVC RAISED THE CASH PORTION OF ITS OFFER FOR 501 OF PARAMOUNT SHARES TO 104 A SHARE FROM 92 OR 750 MILLION THE HOMESHOPPING CABLETV CHANNEL OPERATOR REDUCED THE AMOUNT OF COMMON AND PREFERRED STOCK BEING OFFERED FOR THE REMAINING 499 OF PARAMOUNT QVC WAS AIDED BY A 500 MILLION STOCK SALE TO BELLSOUTH CORP WHICH IS ALREADY BACKING ITS BID QVC ALSO IGNORED APPEALS FROM INVESTORS TO PROVIDE SOME EXTRA COMPENSATION THAT WOULD INCREASE IF ITS STOCK DOESN'T PERFORM WELL A FEATURE THAT HELPED VIACOM'S PREVIOUS BID GAIN THE BACKING OF PARAMOUNT'S BOARD ON JAN 21 IN THE NEW OFFER VIACOM IMPROVED THE TERMS OF THAT FEATURE KNOWN AS A CONTINGENT VALUE RIGHT AS A RESULT MEDIA ANALYST LISBETH G BARRON OF SG WARBURG & CO SAID QVC'S BID IS HIGHER BUT VIACOM'S IS MORE SECURE VIACOM LEFT THE CASH PORTION OF ITS OWN OFFER UNCHANGED AT 107 A SHARE FOR 501 OF PARAMOUNT BUT THE CABLETV PROGRAMMER BOOSTED THE VALUE OF SECURITIES BEING OFFERED FOR THE REMAINING 499 THE SMALL INCREASES IN THE BIDS COMING JUST BEFORE YESTERDAY'S 5 PM EST DEADLINE SUGGEST THAT BOTH VIACOM AND QVC ARE WORRIED ABOUT OVERPAYING FOR THE ENTERTAINMENT AND PUBLISHING GIANT AMID SIGNS THAT ITS RESULTS HAVE BEEN DETERIORATING EVEN AS BIDS ESCALATED DURING THE 4 1/2MONTH TAKEOVER CONTEST PARAMOUNT ONE OF THE LAST INDEPENDENT TV AND MOVIE STUDIOS BECAME THE OBJECT OF THE TAKEOVER FIGHT BECAUSE MEDIA COMPANIES ARE SCRAMBLING TO ACQUIRE ENTERTAINMENT ASSETS TO FEED A BURGEONING MULTIMEDIA UNIVERSE TAKEOVER STOCK TRADERS SAID THE BIDS ARE ALSO DIFFICULT TO VALUE BECAUSE OF THE VARIETY OF SECURITIES THEY CONTAIN IN VIACOM'S CASE FIVE DIFFERENT SECURITIES ARE BEING OFFERED FOR 499 OF PARAMOUNT'S SHARES ONE INVESTMENT BANKER SAID THE OFFERS READ LIKE TWO MENUS FROM CHINESE RESTAURANTS VIACOM IS OFFERING ONE SECURITY THAT WILL EITHER BE A DEBT SECURITY PAYING 8 INTEREST IF VIACOM COMPLETES ITS PROPOSED ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP OR A PREFERRED STOCK PAYING A 5 DIVIDEND IF THE BLOCKBUSTER TRANSACTION ISN'T COMPLETED BY JAN 1 1995 VIACOM AND QVC EACH IMMEDIATELY BEGAN PROMOTING ITS BID AS SUPERIOR IN WHAT COULD BE THE START OF A TWOWEEK SOLICITATION CAMPAIGN LEADING UP TO THE FEB 14 DECISION BY TRADERS AND INVESTORS QVC CHAIRMAN BARRY DILLER SAID HE FELT HIS COMPANY HAD TO RESPOND TO VIACOM'S PREVIOUS INCREASE IN THE CASH PORTION OF THE DEAL I DID FEEL THAT TO A NORMAL PERSON THE CASH DIFFERENTIAL SPOKE LOUDLY HE SAID I FELT WE HAD AN OBLIGATION TO ADDRESS IT BUT THE HOMESHOPPING COMPANY'S CHIEF VIGOROUSLY DEFENDED HIS DECISION NOT TO BOLSTER THE SOCALLED BACK END OF THE OFFER AS VIACOM DID IT'S UNFAIR TO OUR HOLDERS TO PUT THEM IN A POSITION THAT COULD COST THEM AN EXTRAORDINARY AMOUNT OF DILUTION IF ADDITIONAL QVC SHARES HAD TO BE ISSUED UNDER A CONTINGENTVALUE SECURITY TAKEOVERSTOCK TRADERS WHO ALREADY FAVORED THE PREVIOUS VIACOM OFFER SAID THAT VIACOM'S INCREASE IN THE VALUE OF SECURITIES BEING OFFERED FOR 499 OF PARAMOUNT WAS GREATER THAN THE INCREASE IN QVC'S OVERALL BID UNLESS SOMETHING DRAMATIC HAPPENS IN THE INTERIM WE'LL BE TENDERING OUR SHARES TO VIACOM AS WILL ALL THE SHORTTERM INVESTORS SAID MARK DICKSTEIN PRESIDENT OF THE INVESTMENT FIRM OF DICKSTEIN PARTNERS INC QVC SAID IT'S FINANCING THE BULK OF THE INCREASED CASH IN ITS BID WITH A PLANNED 500 MILION STOCK SALE TO BELLSOUTH WHICH HAD ALREADY AGREED TO INVEST 15 BILLION BUT SOME TRADERS SAID THE 42 A SHARE THAT BELLSOUTH AGREED TO PAY 275 BELOW QVC'S MARKET PRICE COULD UNDERCUT MR DILLER'S ARGUMENT THAT THE STOCK IS A GOOD BUY BELLSOUTH ALSO WON A REDUCTION IN THE PRICES IT PREVIOUSLY AGREED TO PAY FOR QVC STOCK UNDER THE 15 BILLION COMMITMENT INDICATING THAT THE NEGOTIATION FOR THE ADDITIONAL FUNDS WAS HARDFOUGHT FOR EXAMPLE ONE TRADER WITH A LARGE PARAMOUNT POSITION ASSUMES THAT QVC STOCK WOULD TRADE AT 35 A SHARE IF QVC WON THE CONTEST AND VIACOM CLASS B SHARES WOULD TRADE AT 32 IF VIACOM WON AT THOSE LEVELS HE VALUES THE QVC BID AT 7930 A SHARE OR 95 BILLION AND THE VIACOM BID AT 8125 A SHARE OR 98 BILLION MARIO GABELLI WHOSE GABELLI INVESTMENT FUNDS OWN PARAMOUNT SHARES SAID THAT BASED ON THE CLOSING PRICE OF THE TWO STOCKS YESTERDAY QVC APPEARS TO HAVE A 3 TO 4 ADVANTAGE OVER VIACOM THOUGH HE ACKNOWLEDGED THAT TRADERS MAY NOT VALUE IT THAT WAY TODAY THE MAIN THING IS YOU STILL HAVE TWO BUYERS THEY'RE BOTH STILL THERE KEEPING THE BALL ROLLING MR GABELLI SAID BUT I DON'T THINK EITHER HAS SHOWN THEIR BEST DEAL YET HE ADDED THIS IS WHAT I CALL THE HIGHWAY CHICKEN GAME THAT TEENAGERS PLAY ONLY VIACOM AND QVC ARE PLAYING IT ON THE INFORMATION HIGHWAY THE FIRST ONE TO LET THE OTHER GET 50 LOSES AS OF YESTERDAY MORNING VIACOM WAS SLIGHTLY OUTDRAWING QVC UNDER THE COMPANIES' PREVIOUS COMPETING TENDER OFFERS VIACOM HAD RECEIVED 217 MILLION PARAMOUNT SHARES OR 18 UNDER ITS 97 BILLION OFFER COMPARED WITH QVC'S TOTAL OF 19 MILLION OR 16 FOR ITS 102 BILLION OFFER NEITHER BIDDER CAME CLOSE TO RECEIVING THE 501 MAJORITY OF SHARES NEEDED TO WIN THE CONTEST BECAUSE TRADERS WANTED TO GET A LOOK AT YESTERDAY'S FINAL BIDS QVC STOCK ROSE 75 CENTS A SHARE TO 4475 ON THE NASDAQ STOCK MARKET VIACOM CLASS B SHARES TUMBLED 1125 TO 34125 ON THE AMERICAN STOCK EXCHANGE THE 18TO16 MARGIN OF SHARES TENDERED TO EACH BIDDER WAS IN LINE WITH AN OPINION BY PARAMOUNT'S INVESTMENT ADVISER LAZARD FRERES & CO THAT THE VIACOM OFFER WAS MARGINALLY SUPERIOR 9402020066 940202 CREDIT RATINGS AMPHENOL CORP WALLINGFORD CONN MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED AMPHENOL'S 95 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE 2002 TO SINGLEB1 FROM SINGLEB2 MOODY'S SAID THE UPGRADE REFLECTS THE GOOD RETURNS AND FAVORABLE OUTLOOK OF THE COAXIAL CABLE BUSINESS OF AMPHENOL'S TIMES FIBER UNIT PROGRESS ON DEBT REDUCTION AND THE ANTICIPATED BENEFITS OF A POSSIBLE STOCK SALE AMPHENOL MAKES ELECTRICAL ELECTRONIC AND FIBER OPTIC EQUIPMENT 9402020065 940202 FDIC NOMINEE VOWS REGULATORY RELIEF REPELS GOP PRESSURE OVER MADISON S&L BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NOMINEE TO HEAD THE FEDERAL DEPOSIT INSURANCE CORP TOLD HER CONFIRMATION HEARING THAT SHE WANTS TO RELIEVE BANKS OF CUMBERSOME REGULATION BUT REPUBLICANS TRIED TO TURN THE HEARING INTO A SESSION ON PRESIDENT CLINTON'S CONNECTIONS TO A FAILED ARKANSAS THRIFT RICKI TIGERT WON STRONG SUPPORT TO HEAD THE FDIC FROM MEMBERS OF THE SENATE BANKING COMMITTEE WHILE GIVING HER VIEWS ON BANKING ISSUES RANGING FROM DERIVATIVES TO DISCRIMINATORY LENDING SHE MANAGED TO SIDESTEP REPUBLICAN EFFORTS TO FORCE HER TO RECUSE HERSELF FROM ANY AGENCY INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN A FAILED THRIFT THAT HAS BEEN LINKED TO MR CLINTON'S POLITICAL CAMPAIGNS AND HIS INVESTMENT IN WHITEWATER DEVELOPMENT CO THE FDIC IS TANGENTIALLY INVOLVED IN THE MADISON GUARANTY AFFAIR WHICH IS THE SUBJECT OF AN INDEPENDENT COUNSEL'S INVESTIGATION THE AGENCY HIRED THE ROSE LAW FIRM OF LITTLE ROCK ARK TO SUE AN ACCOUNTING FIRM THAT HAD DONE WORK FOR MADISON BEFORE IT FAILED HILLARY RODHAM CLINTON WAS A PARTNER IN THE ROSE FIRM AND WAS AT ONE TIME RETAINED TO DO LEGAL WORK FOR MADISON NOW THE FDIC IS TRYING TO DECIDE WHETHER ROSE ACCURATELY INFORMED THE AGENCY OF ITS TIES TO MADISON ALTHOUGH MS TIGERT IS A FRIEND OF MRS CLINTON'S SHE REBUFFED EFFORTS BY GOP SENS LAUCH FAIRCLOTH OF NORTH CAROLINA AND ALFONSE D'AMATO OF NEW YORK TO HAVE HER RECUSE HERSELF FROM ANY FDIC CONSIDERATION OF THE CASE INSTEAD SHE SAID SHE WOULD CHECK WITH FDIC ETHICS OFFICERS AND TAKE THE NECESSARY STEPS TO INSURE THE CREDIBILITY OF THE REGULATORY PROCESS IN FACT THE ISSUE MAY BE OVER BEFORE MS TIGERT A BANKING LAWYER IN THE WASHINGTON OFFICE OF GIBSON DUNN & CRUTCHER REACHES THE FDIC ANDREW HOVE THE AGENCY'S ACTING CHAIRMAN TOLD THE PANEL THAT THE AGENCY WILL COMPLETE AN INVESTIGATION OF THE ROSE ISSUE IN 10 DAYS TO TWO WEEKS MR HOVE HAS BEEN NOMINATED TO ANOTHER TERM AS VICE CHAIRMAN AND IS EXPECTED TO WIN CONFIRMATION WITHOUT CONTROVERSY ANNE HALL A THIRD NOMINEE TO THE FIVEMEMBER BOARD IS ALSO EXPECTED TO WIN CONFIRMATION MS HALL IS A VICE PRESIDENT OF BANC ONE CORP IN COLUMBUS OHIO REPUBLICANS HAVE BEEN TRYING TO GET THE BANKING COMMITTEES IN BOTH THE HOUSE AND THE SENATE TO HOLD HEARINGS ON MADISON GUARANTY BUT THE DEMOCRATIC CHAIRMEN HAVE REFUSED YESTERDAY HOWEVER THE TWO CHAIRMEN SEN DONALD RIEGLE OF MICHIGAN AND REP HENRY GONZALEZ OF TEXAS SAID THEY WILL HOLD HEARINGS ON OVERSIGHT OF THE RESOLUTION TRUST CORP WHICH DISPOSES OF FAILED THRIFTS AND LAUNCHED THE MADISON INQUIRY IN THE FIRST PLACE REPUBLICANS HOPE TO USE THESE HEARINGS AS A VEHICLE FOR RAISING QUESTIONS ABOUT THE TIES BETWEEN THE CLINTONS AND MADISON THE FORMER OWNER OF MADISON WAS A PARTNER WITH THE CLINTONS IN WHITEWATER DEVELOPMENT A LAND COMPANY AND WAS A POLITICAL FUNDRAISER FOR MR CLINTON WHEN HE WAS GOVERNOR OF ARKANSAS ONE ISSUE IS WHETHER MADISON FUNDS WERE IMPROPERLY USED TO FUND CAMPAIGN CONTRIBUTIONS AND BUSINESS INVESTMENTS MS TIGERT STRONGLY SUPPORTED THE CLINTON ADMINISTRATION'S PROPOSAL TO CONSOLIDATE FOUR BANK REGULATORY AGENCIES INTO A NEW FEDERAL BANKING COMMISSION TO STREAMLINE BANK SUPERVISION A MORE THOUGHTFUL STRUCTURE FOR BANK REGULATION SHOULD INCREASE THE ENERGY AND FUNDS THAT BANKS CAN DEVOTE TO THE US ECONOMY SHE SAID BANKS MUST BE RELIEVED FROM CONFUSING DUPLICATIVE AND OVERLAPPING REGULATION THAT IS NOT ESSENTIAL TO SAFETY AND SOUNDNESS SHE EXPRESSED HOPE THAT THE TREASURY AND THE FEDERAL RESERVE BOARD WHERE SHE ONCE WORKED WILL RESOLVE THEIR DIFFERENCES OVER THE PROPOSAL SHE ALSO SUPPORTED ALLOWING BANKS TO OPERATE INTERSTATE BRANCH NETWORKS AS A WAY TO CUT COSTS AND INCREASE EFFICIENCY A HOUSE PANEL IS EXPECTED TO APPROVE AN INTERSTATEBRANCH PLAN THIS WEEK THE RAPID GROWTH OF BANK INVOLVEMENT IN DERIVATIVESPRODUCTS USED TO HEDGE AGAINST INTERESTRATE FLUCTUATIONS AND OTHER RISKS IS A SOURCE OF CONCERN MS TIGERT TOLD THE PANEL SHE SAID THAT THE FINANCIAL INDUSTRY HAS ISSUED RECOMMENDATIONS FOR LIMITING THE RISK OF DERIVATIVES AND THAT THE CLINTON ADMINISTRATION IS MONITORING THE DERIVATIVES MARKET MS TIGERT ALSO SAID SHE WAS WORRIED BY SURVEYS SHOWING THAT MANY PEOPLE WHO PURCHASE MUTUAL FUNDS FROM BANKS MISTAKENLY THINK THEY'RE COVERED BY FEDERAL DEPOSIT INSURANCE SHE SUGGESTED THAT MORE DISCLOSURE MAY BE NECESSARY YESTERDAY THE BANKING INDUSTRY ISSUED A STATEMENT BASED ON GOVERNMENT GUIDELINES DESIGNED TO END CONFUSION ABOUT BANK SALES OF MUTUAL FUNDS 9402020064 940202 WHITE HOUSE LOBBIES STRONGLY TO BLOCK BUSINESS SUPPORT OF RIVAL HEALTH PLAN BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE LOBBIED AGGRESSIVELY TO STAVE OFF AN EMBARRASSING VOTE BY AN INFLUENTIAL BUSINESS GROUP IN FAVOR OF A RIVAL HEALTHCARE BILL THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVE OFFICERS OF SOME OF THE NATION'S LARGEST CORPORATIONS IS SCHEDULED TO VOTE THIS AFTERNOON ON A RECOMMENDATION BY ITS HEALTHCARE TASK FORCE TO SUPPORT LEGISLATION AUTHORED BY REP JIM COOPER D TENN AND SEN JOHN BREAUX D LA THE PROSPECT OF THE BUSINESS GROUP BACKING THE COOPER BILL LED THE WHITE HOUSE TO INVITE A GROUP OF TOP EXECUTIVES TO MEET YESTERDAY AFTERNOON WITH HILLARY RODHAM CLINTON AND SENIOR ADMINISTRATION OFFICIALS PRESIDENT CLINTON HIMSELF DROPPED BY FOR A FEW MINUTES ACCORDING TO PARTICIPANTS UNDERSCORING THE URGENCY OF THE BUSINESS ROUNDTABLE VOTE AMONG THOSE AT THE MEETING WERE THE CHIEF EXECUTIVES OF TRW INC PROCTER & GAMBLE CO BOEING CO ALUMINUM CO OF AMERICA DUPONT CO AND UAL CORP'S UNITED AIRLINES ADMINISTRATION OFFICIALS INCLUDING ECONOMIC ADVISER ROBERT RUBIN DEPUTY TREASURY SECRETARY ROGER ALTMAN AND SENIOR WHITE HOUSE HEALTHCARE AIDE IRA MAGAZINER TOLD THE GROUP THAT IT WOULD BE UNWISE TO BACK A PARTICULAR HEALTHCARE BILL AT THIS STAGE WE TOLD THEM TO LOOK AT ALL OF THE OPTIONS ON THE TABLE SAID ALEXIS HERMAN WHO HEADS THE WHITE HOUSE'S OFFICE OF PUBLIC LIAISON WHY FORECLOSE YOUR OPTIONS THIS EARLY IN THE PROCESS WE THINK THAT'S A MESSAGE BUSINESS UNDERSTANDS THE ADMINISTRATION OFFICIALS STRESSED THAT THEY UNDERSTAND THE BUSINESS COMMUNITY'S CONCERNS ABOUT THE CLINTON HEALTHCARE PLAN BUT THEY SAID THE PRESIDENT HAS SHOWN HE'S WILLING TO COMPROMISE ON SUCH ISSUES AS CAPS ON HEALTHINSURANCE PREMIUMS AND THE SHAPE OF PROPOSED REGIONAL INSURANCEBUYING POOLS BEYOND THAT THE ADMINISTRATION OFFICIALS QUESTIONED WHY THE CEOS WOULD WANT TO ENDORSE THE COOPER BILL WHEN IT WOULDN'T GUARANTEE HEALTH COVERAGE FOR EVERYONE THEY NOTED THAT BIG COMPANIES ALREADY PROVIDE MEDICAL INSURANCE FOR THEIR WORKERS PRESIDENT CLINTON HAS MADE UNIVERSAL COVERAGE THE ONE POINT ON WHICH HE WON'T YIELD EVEN THREATENING TO VETO ANY LEGISLATION THAT DOESN'T MEET THAT STANDARD MS HERMAN DENIED THAT YESTERDAY'S MEETING WAS A LASTMINUTE SCRAMBLE CHARACTERIZING IT INSTEAD AS PART OF A CONTINUING EFFORT BY THE ADMINISTRATION TO REACH OUT TO BUSINESS LEADERS BUT THE WHITE HOUSE CLEARLY IS WORRIED ABOUT THE BIPARTISAN SUPPORT THE COOPER BILL ENJOYS AT THE WHITE HOUSE'S REQUEST REPS DAN ROSTENKOWSI D ILL AND JOHN DINGELL D MICH HAVE BEEN CONTACTING COMPANIES TO MAKE THE ADMINISTRATION'S CASE REP ROSTENKOWSKI CALLED A GROUP OF TOP EXECUTIVES TO A MEETING ON CAPITOL HILL LAST NIGHT IN ADDITION MESSRS RUBIN ALTMAN MAGAZINER AND WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY HAVE BEEN WORKING THE PHONES AMONG THOSE WHO HAVE BEEN CONTACTED BY THE WHITE HOUSE ARE EASTMAN KODAK CO FORD MOTOR CO AND XEROX CORP IF THE WHITE HOUSE SUCCEEDS IN QUASHING A ROUNDTABLE VOTE IN FAVOR OF THE COOPER BILL IT WILL BE A CONSIDERABLE VICTORY THE PROCOOPER RESOLUTION ALREADY WAS APPROVED BY THE ROUNDTABLE'S POLICY COMMITTEE IN A LOPSIDED VOTE EARLIER THIS MONTH BUT THE WHITE HOUSE ASKED THE BUSINESS GROUP TO DELAY ANNOUNCING THE VOTE UNTIL AFTER THE PRESIDENT'S STATE OF THE UNION ADDRESS LAST WEEK THE ROUNDTABLE AGREED TO RECONSIDER THE VOTE AT ITS POLICY COMMITTEE'S ANNUAL MEETING TODAY WHILE THE ADMINISTRATION LOBBIED ROUNDTABLE MEMBERS YESTERDAY PRESIDENT CLINTON STEPPED UP HIS ATTACK ON THE NATION'S HEALTHINSURANCE INDUSTRY IN TWO SEPARATE SPEECHES HE ASSERTED THAT INSURERS ARE WASTEFUL DISCRIMINATORY AND AN IMPEDIMENT TO A FULVLY FUNCTIONING HEALTHCARE SYSTEM INSURANCE COMPANIES HAVE SET UP A SYSTEM WHICH ENABLES THEM TO SLAM THE DOOR ON PEOPLE WHO AREN'T HEALTHY ENOUGH TO GET COVERED MR CLINTON CHARGED DURING A SPEECH TO THE AMERICAN HOSPITAL ASSOCIATION LATER HE TOLD THE NATIONAL GOVERNORS ASSOCIATION WE DO HAVE A SYSTEM UNLIKE ANY OTHER IN THE ADVANCED COUNTRIES IN THE WORLD IN WHICH INSURANCE COMPANIES DECIDE WHO'S COVERED AND WHO ISN'T WHAT THE COST OF INSURANCE IS AND WHAT'S COVERED IN SPECIFIC POLICIES DEMOCRATS ON CAPITOL HILL ALSO SCORNED THE INSURERS AT A SENATE FINANCE COMMITTEE HEARING THE HEALTHINSURANCE LOBBY HEARD ANGRY WORDS ABOUT ITS MULTIMILLIONDOLLAR ADVERTISING CAMPAIGN DESIGNED TO UNDERCUT THE CLINTON HEALTH PLAN YOU'RE SCARING PEOPLE SAID SEN JAY ROCKEFELLER D WVA IN A SHARP EXCHANGE WITH FORMER REP WILLIS GRADISON AN OHIO REPUBLICAN WHO RESIGNED FROM CONGRESS LAST YEAR TO HEAD THE HEALTH INSURANCE ASSOCIATION OF AMERICA MR GRADISON NOTED THAT HIS GROUP SUPPORTS MANY INSURANCE REFORMS IN THE CLINTON ADMINISTRATION'S BILL SEN ROCKEFELLER ALSO SUGGESTED THAT THE PRESIDENT'S PROFESSED WILLINGNESS TO COMPROMISE ON SUCH ISSUES AS THE PREMIUM CAPS WASN'T PARTICULARLY USEFUL IN RESPONSE MR CLINTON LATER SAID I WOULD CAUTION SEN ROCKEFELLER TO NOT THINK THAT I HAVE LEFT HIS POSITION IF WE CHANGE POSITIONS HE AND I WE'RE GOING TO TRY AND DO IT TOGETHER JEFFREY H BIRNBAUM AND MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9402020063 940202 BUSINESS BRIEF ALLIEDSIGNAL INC TALKS ON AVIONICS VENTURE WITH FRENCH FIRM ENDED ALLIEDSIGNAL INC AND SEXTANT AVIONIQUE BROKE OFF TALKS ON A JOINT VENTURE IN AVIONICS SAYING THEY COULDN'T FIND A WAY TO INTEGRATE THEIR AVIONICS BUSINESSES WHEN THE COMPANIES ANNOUNCED PLANS TO MERGE THEIR AVIONICS OPERATIONS LAST AUGUST ANALYSTS SAID INCREASING COMPETITION IN THE INDUSTRY NECESSITATED SUCH A MERGER STILL SOME AEROSPACE EXPERTS QUESTIONED THE PLANNED MERGER SAYING THE CORPORATE CULTURES OF THE TWO COMPANIES CLASHED BUT ALLIEDSIGNAL SAID MERGER TALKS UNRAVELED BECAUSE THE TWO COMPANIES COULDN'T AGREE ON HOW TO INCORPORATE SEXTANT'S MILITARY OPERATIONS THE JOINT VENTURE WOULD HAVE HAD TOTAL SALES OF ABOUT 1 BILLION A YEAR THE COMPANIES SAID SEXTANT AVIONIQUE A FRENCH CONCERN CREATED IN 1989 PRODUCES ELECTRONICS AND COMPUTERS FOR AIRCRAFT ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ MAKES AEROSPACE AND AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS 9402020062 940202 BUSINESS BRIEF NORTHROP CORP LOSS OF 35 MILLION IS POSTED FOR 4TH QUARTER SALES FELL NORTHROP CORP REPORTED A FOURTHQUARTER LOSS BECAUSE OF A LARGERTHANEXPECTED LOSS PROVISION OF 107 MILLION OR 218 A SHARE FOR THE CLASSIFIED TRISERVICE STANDOFF ATTACK MISSILE THE LOS ANGELES COMPANY RECORDED A FOURTHQUARTER LOSS OF 35 MILLION OR 73 CENTS A SHARE COMPARED WITH EARNINGS OF 55 MILLION OR 117 A SHARE IN THE FOURTH QUARTER OF 1992 THE PRETAX LOSS PROVISION WAS 164 MILLION NORTHROP'S SALES FOR THE 1993 QUARTER FELL 17 TO 126 BILLION FROM 151 BILLION A YEAR EARLIER THE COMPANY ATTRIBUTED THE LATEST LOSS PROVISION FOR THE FIXEDPRICE MISSILE PROGRAM TO RISING COSTS OF DEVELOPMENT IN ALL THE COMPANY HAS MADE LOSS PROVISIONS OF 603 MILLION FOR THE PROGRAM NORTHROP STOCK ROSE 1 OR 26 TO CLOSE AT 39875 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9402020061 940202 BUSINESS BRIEF HERITAGE MEDIA CORP UNIT OF HALLMARK CARDS MAY SELL ITS 157 STAKE HERITAGE MEDIA CORP DALLAS SAID A HALLMARK CARDS INC UNIT IS CONSIDERING SELLING ITS 157 STAKE IN THE TELEVISION RADIO AND MARKETING CONCERN THROUGH A SECONDARY OFFERING ACCORDING TO A STATEMENT FROM HERITAGE THE KANSAS CITY MO GREETINGCARD COMPANY SAID IT IS CONSIDERING THE SALE TO FOCUS ON ITS CORE BUSINESSES THE ANNOUNCEMENT WAS MADE AFTER THE STOCK MARKET CLOSED YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING HERITAGE SHARES FELL 375 CENTS TO 20625 AT THAT PRICE HALLMARK'S STAKE TOTALING 27 MILLION SHARES WOULD FETCH 557 MILLION HALLMARK WAS ONE OF HERITAGE'S ORIGINAL INVESTORS IN 1988 SEPARATELY HERITAGE REPORTED THAT ITS PROFIT FELL 24 IN THE FOURTH QUARTER TO 49 MILLION OR 20 CENTS A SHARE FROM 64 MILLION OR 29 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 11 TO 979 MILLION FROM 878 MILLION 9402020060 940202 BUSINESS BRIEF PACE AMERICAN GROUP INC COMPANY STUDIES CHARGES OF IMPROPER TRANSACTIONS' PACE AMERICAN GROUP INC SAID ITS BOARD HAS BEGUN AN INVESTIGATION INTO CHARGES THAT CERTAIN FORMER AND PRESENT MEMBERS OF SENIOR MANAGEMENT HAVE ENGAGED IN IMPROPER TRANSACTIONS INVOLVING BUSINESS OF THE COMPANY THE SURETYBOND COMPANY SAID IN TUCSON ARIZ THAT TWO TOP OFFICERS HAVE TAKEN VOLUNTARY LEAVES OF ABSENCE TO FACILITATE THE INVESTIGATION THEY ARE DON H PACE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GREG S KAPLAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FRANK J BARRETT A DIRECTOR WAS NAMED INTERIM PRESIDENT AND CHIEF EXECUTIVE DURING THE INVESTIGATION STEVEN L RAMSEY A CERTIFIED PUBLIC ACCOUNTANT WAS NAMED INTERIM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE COMPANY SAID IT HAS REACHED NO CONCLUSIONS AS TO THE TRUTH OF THE ALLEGATIONS IT DECLINED TO COMMENT FURTHER 9402020059 940202 US TO CLEAR RON BROWN OF ALLEGED BID FOR BRIBE WASHINGTON THE JUSTICE DEPARTMENT IS EXPECTED TO INFORM COMMERCE SECRETARY RONALD BROWN THIS WEEK THAT IT HASN'T FOUND ANY EVIDENCE TO SUPPORT CHARGES THAT HE SOUGHT A BRIBE TO INFLUENCE US POLICY TOWARD VIETNAM A LETTER FROM DEPARTMENT OFFICIALS TO MR BROWN PROBABLY WILL BE SENT WITHIN A FEW DAYS A CLINTON ADMINISTRATION OFFICIAL SAID INVESTIGATORS WEEKS AGO CONCLUDED THERE WASN'T ANY BASIS FOR CHARGING MR BROWN BUT TOP DEPARTMENT OFFICIALS WANTED TO BE CERTAIN THAT ALL POSSIBILITIES HAD BEEN THOROUGHLY CHECKED BEFORE CLEARING THE SECRETARY MR BROWN'S SOLE ACCUSER LY THANH BINH TOLD REPORTERS AND FEDERAL AGENTS THAT MR BROWN WANTED 700000 PLUS OIL AND GAS ROYALTIES FOR HIS ASSISTANCE IN IMPROVING TRADE RELATIONS BETWEEN THE US AND VIETNAM MR BINH WAS A BUSINESS PARTNER WITH NGUYEN VAN HAO A FORMER SOUTH VIETNAMESE OFFICIAL WHO MR BINH SAID WAS THE MIDDLEMAN BETWEEN MR BROWN AND VIETNAMESE GOVERNMENT AUTHORITIES MR BROWN ACKNOWLEDGED MEETING WITH MR HAO ON THREE OCCASIONS FROM NOVEMBER 1992 TO JANUARY 1993 INCLUDING ONCE IN THE SECRETARY'S COMMERCE DEPARTMENT OFFICE MR HAO HAS DENIED MR BINH'S ALLEGATIONS AND MR BINH ACKNOWLEDGED THAT HE HAD NEVER TALKED TO MR BROWN AND HAD NO FIRSTHAND INFORMATION THAT MR BROWN IMPROPERLY SOLICITED VIETNAMESE BUSINESS 9402020058 940202 BUSINESS BRIEF AMGEN INC FOURTHQUARTER NET INCOME FELL 32 TO 911 MILLION AMGEN INC'S FOURTHQUARTER NET INCOME FELL 32 TO 911 MILLION OR 64 CENTS A SHARE FROM THE YEAREARLIER QUARTER IN WHICH IT RECORDED A HEFTY LEGAL AWARD THE RESULTS WERE IN LINE WITH ANALYSTS' ESTIMATES AND EASED INVESTOR FEARS ABOUT WEAK SALES OF ITS NEUPOGEN CANCERTREATMENT DRUG IN THE PRIOR YEAR THE THOUSAND OAKS CALIFBASED BIOTECHNOLOGY CONCERN HAD NET INCOME OF 1338 MILLION OR 91 CENTS A SHARE THAT AMOUNT INCLUDED 509 MILLION OR 35 CENTS A SHARE FROM THE LEGAL AWARD REVENUE ROSE 186 TO 3656 MILLION FROM 3082 MILLION AMGEN SAID IN A REPORT ISSUED AFTER THE MARKET CLOSED YESTERDAY AMGEN CLOSED AT 47 DOWN 175 IN NASDAQ STOCK MARKET TRADING YESTERDAY FOR ALL OF 1993 AMGEN NET INCOME ROSE 72 TO 3833 MILLION OR 267 A SHARE FROM 3576 MILLION OR 243 A SHARE REVENUE ROSE 257 TO 137 BILLION FROM 109 BILLION 9402020057 940202 BUSINESS BRIEF BENEFICIAL CORP EARNINGS FOR FOURTH QUARTER JUMPED BY NEARLY DOUBLE BENEFICIAL CORP SAID FOURTHQUARTER EARNINGS ALMOST DOUBLED AIDED BY A SHARP GAIN IN RECEIVABLES GROWTH AND IMPROVED CREDIT QUALITY THE CONSUMER FINANCE BANKING AND INSURANCE COMPANY BASED IN WILMINGTON DEL SAID NET INCOME ROSE TO 433 MILLION OR 80 CENTS A SHARE FROM 227 MILLION OR 41 CENTS A SHARE A YEAR EARLIER THE 1992 FIGURE INCLUDES A LOSS OF 600000 OR ONE CENT A SHARE FROM DISCONTINUED OPERATIONS PERSHARE FIGURES REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE DEC 15 FINANCE RECEIVABLES AT YEAR END TOTALED 1102 BILLION UP 15 FROM 959 BILLION A YEAR EARLIER AND THE ALLOWANCE FOR CREDIT LOSSES WAS 253 DOWN FROM 274 A YEAR EARLIER THE COMPANY SAID THE YEAREND LOSS RESERVE REMAINS QUITE CONSERVATIVE BOTH ON AN ABSOLUTE BASIS AND RELATIVE TO NET CHARGEOFFS 9402020056 940202 JUST SKIDDING SEARCH FOR A FIRM FOOTING FRUSTRATES NORTHEAST SALT SHORTAGE MAKES IT HARD TO GET A GRIP SOME TURN TO ASHES SOME TO DUST BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL PITTSFIELD MASS IT IS 26 DEGREES BELOW ZERO IN THE SUN VAPOR RISES FROM THE SOLID SLAB OF ICE THAT IS LARRY SUTTON'S HILLSIDE DRIVEWAY IN 1988 THIS PINESCENTED TOWN IN THE BERKSHIRE HILLS WAS RATED THE 26TH BEST PLACE TO LIVE BY PSYCHOLOGY TODAY MAGAZINE THAT'S NICE SAYS MR SUTTON BUNDLED UP IN MUFFLER DOWN JACKET AND A DEERHUNTER'S CAP RIGHT NOW I'LL SETTLE FOR ANY TOWN WITH TRACTION MR SUTTON PERCHED ATOP A SNOW BANK IS SCATTERING BIRD SEED IN THE DRIVEWAY NOT TO GIVE HIS FEATHERED FRIENDS A NIBBLE BUT TO GIVE THE GROUND SOME BITE AS HE DESCENDS FROM THE MOUND MR SUTTON TAKES TWO STEPS AND GOES DOWN ON HIS BUM REACHING INTO A 50POUND BAG OF NATURAL FRUIT N' BERRY BIRD FOOD HE CASTS A FEW MORE HANDFULS ONTO THE FROZEN TERRAIN FACING A DEEP FREEZE THAT HAS TURNED ENTIRE TOWNS INTO ICE RINKS AND BROUGHT WITH IT A SHORTAGE OF SALT AND SAND FRUSTRATED NORTHEASTERNERS ARE HURLING AN ARRAY OF ODD SUBSTANCES AT THE GROUND IN A SOMETIMES FUTILE BID FOR FOOTING SUPERMARKETS AND HARDWARE STORES REPORT A RUN ON CAT LITTER ASHES ANTIICE AGENTS FROM BEFORE THE DAYS OF PACKAGED GOODS ARE MAKING A STRONG COMEBACK THE LIST OF ANTISKID SUBSTITUTES HAS BEEN FOR THE MOST PART ORGANIC ENVIRONMENTALLY CORRECT AND LIMITED ONLY BY THE IMAGINATION FERTILIZER SEAWEED DIRT FISH NETS SAWDUST CINDERS WOOD CHIPS AND BURLAP SOME OF THIS SUBSTITUTE STUFF WORKS LIKE CAT LITTER AND ASHES BUT OTHER THINGS I'M NOT SO SURE ABOUT SAYS JOE PICARD AT THE DEPARTMENT OF PUBLIC WORKS IN WORCESTER MASS I'M NOT SAYING THESE PEOPLE ARE CRAZY IN FACT I'D CALL IT YANKEE INGENUITY TO SOME THIS ISN'T A LAUGHING MATTER THE NATIONAL SAFETY COUNCIL IN CHICAGO WHICH KEEPS TRACK OF ACCIDENTAL DEATHS WARNS THAT THE HIGHEST NUMBER OF CASUALTIES OCCURS IN JANUARY WHEN AN AVERAGE OF MORE THAN 1000 PEOPLE DIE FROM FALLS OUTSIDE THE HOME SNOW AND ICE ARE CHIEF CULPRITS I FEEL IT IS THE DUTY OF EACH HEAD OF HOUSEHOLD IN THE NORTHEAST TO PROVIDE HIS FAMILY WITH A ROOF OVER THEIR HEAD FOOD IN THEIR BELLY AND GOOD FOOTING IN THE WINTER SAYS ANTONIO GALLI OF PORT CHESTER NY EVERY TIME I STEP OUT OF THE HOUSE THESE DAYS IT'S AN ICE JUNGLE OUT THERE SPOILED BY FIVE YEARS OF RELATIVELY MILD WINTERS MERCHANTS HAVE BEEN CAUGHT OFFGUARD BY ARCTIC CONDITIONS IT HAS AVERAGED ABOUT 20 DEGREES BELOW NORMAL FOR THIS TIME OF YEAR WITH NEW RECORD LOWS SET IN MANY NORTHEASTERN CITIES IN LANCASTER PA PEOPLE HAVE POURED INTO STORES DURING BREAKS IN THE WEATHER TO BUY UP JUST ABOUT EVERYTHING IN GARDEN SUPPLIES INCLUDING PLAIN OLD DIRT SAYS JOHN SNYDER GARDEN DEPARTMENT MANAGER AT STAUFFER'S OF KISSEL HILLS DIRT MUST BE HELPING BECAUSE WE KEEP RUNNING OUT OF STOCK PENNI'S SUPERMARKET IN MARBLEHEAD MASS HAS BEEN OUT OF ROCK SALT FOR TWO WEEKS ALTHOUGH CATLITTER SUPPLIES HAVE BEEN REPLENISHED MANAGER STEPHEN MURPHY SPARED CUSTOMERS THE TRAUMA OF FIGHTING OVER THE LAST BAG OF SALT I SNATCHED IT UP MYSELF SALT MAKERS ASSURE THAT THE SALT IS ON ITS WAY THOUGH IMPATIENT RETAILERS LIKE MR MURPHY SAY IT SOUNDS LIKE THE PROVERBIAL CHECK IN THE MAIL AT AKZO SALT INC A UNIT OF AKZO NV OF THE NETHERLANDS WE HAVE THE SALT SAYS ROBERT JONES VICE PRESIDENT OF MARKETING FOR THE HIGHWAY CHEMICAL DIVISION IN CLARKS SUMMIT PA THE COMPANY'S SALT MINES IN THE US AND ABROAD HAVE BEEN WORKING NONSTOP HE ADDS BUT WE JUST CAN'T GET IT TO THE STORES AS QUICKLY MR JONES SAYS AN ARMADA OF 20 SHIPS IS SPEEDING TO THE EAST COAST FROM SOUTH AMERICA AND THE CARIBBEAN WITH HALF A MILLION TONS OF SALT NEW YORKERS CAN ILLAFFORD THE WAIT UNDER CITY REGULATIONS SNOW AND ICE MUST BE REMOVED FROM SIDEWALKS BY MERCHANTS AND RESIDENTS WITHIN FOUR HOURS OF A SNOW STORM UNLESS THE STORM ENDS LATER THAN 9 PM FINES RANGE FROM 50 TO 100 WHEN THE ICE IS UNMELTABLE AS HAS BEEN THE CASE IN THE PAST FEW WEEKS THE CITY'S SANITATION DEPARTMENT ACTION CENTER RECOMMENDS STREWING ASHES SAND SAWDUST OR CAT LITTER LITTERING LAWS WILL NOT BE ENFORCED IN THE EMERGENCY THE DEPARTMENT ASSURES IN A PINCH USE KOSHER SALT WHICH HAS LARGER GRAINS THAN AVERAGE TABLE SALT ADVISES BRUCE BERTRAM TECHNICAL DIRECTOR FOR THE SALT INSTITUTE AN ASSOCIATION OF SALT MANUFACTURERS WHAT WORKS BEST HOWEVER IS A MATTER OF DEBATE AT THE PARK SQUARE GRILL IN DOWNTOWN PITTSFIELD CONVERSATION ONE RECENT EVENING CENTERED ON ROADS SO SLIPPERY THAT POLICE AREN'T CHASING SPEEDING MOTORISTS AND ON WHAT WORKS ON SIDEWALKS JOSH SIGUARD A KITCHENTILE SPECIALIST LIKES FERTILIZER PARTICULARLY UREA WHICH OCCURS NATURALLY IN ANIMAL URINE AND IS ALSO AVAILABLE IN CRYSTALLIZED FORM IT'S GREAT FOR LAWNS UNDERNEATH THE SNOW MR SIGUARD ARGUES BETWEEN ROUNDS OF VIDEO TRIVIA GAMES JACK DUFFY A FRIEND LIKES BURLAP WHEN I GO BRRR I THINK OF BURLAP SAYS THE PISTACHIO CONNOISSEUR WHO SAVES THE SACKS IN WHICH THE NUTS ARE SOLD IT'S LIKE WALKING ON A BRILLO PAD BUT THE FAVORITE SALT SUBSTITUTE SEEMS TO BE CAT LITTER BEFORE SELLING HIS PIZZA EXPRESS SHOP IN GLEN BURNIE MD EARLIER THIS MONTH KEN CLARK ISSUED 50POUND BAGS OF CAT LITTER TO HIS DRIVERS SO THEY COULD THROW IT ON ROADS OR CUSTOMERS' WALKS TO MAKE DELIVERIES IT'S GOOD FOR PEOPLE IN A HURRY HE SAYS BIRD SEED OF COURSE HAS THE UNIQUE FRINGE BENEFIT OF FEEDING A HANDFUL OF FOOLHARDY WORMSTARVED BIRDS THAT HAVEN'T MIGRATED SOUTH SAYS PITTSFIELD'S MR SUTTON JOE LOGAN WHO FISHES OFF THE STARSHIP OUT OF BOSTON LIKES SEAWEED BEST IT LITTERS THE DECKS AND SIDES OF BOATS AS HE ANCHORS UP AND DOWN THE NORTHEASTERN COAST WAITING FOR THE ICE IN THE HARBORS TO THAW SAYS MR LOGAN SEAWEED IS SALTRICH HE NOTES BUT I ALSO LAY DOWN MY IDLE NETS FOR EXTRA SAFETY IF STILL CONFUSED ABOUT THE VARIOUS MERITS OF STREWN DETRITUS THE WINTER WEARY MAY WRITE AWAY TO DOW CHEMICAL CO FOR BOOKLETS INCLUDING WHAT ARE THE HOTTEST DEICERS ON THE MARKET AND GET A GRIP ON WINTER SAYS SPOKESMAN DOUG BROWNFIELD WE'RE IN AN UNPRECEDENTED THIRD RUN THIS WINTER 9402020055 940202 BUSINESS BRIEF INTERNATIONAL MUSTO EXPLORATIONS SUIT AGAINST METALL CHARGES UNLAWFUL SHARE SOLICITING INTERNATIONAL MUSTO EXPLORATIONS LTD SUED METALL MINING CORP FOR ALLEGEDLY UNLAWFULLY SOLICITING SHARES OF MUSTO PRIOR TO METALL'S PLANNED TAKEOVER BID FOR MUSTO MUSTO A VANCOUVER BRITISH COLUMBIA COMPANY THAT HOLDS A LARGE COPPER AND GOLD DEPOSIT IN ARGENTINA FILED A SUIT IN A BRITISH COLUMBIA COURT AGAINST METALL AND MCLEAN MCCARTHY INC A TORONTO INVESTMENT DEALER THE SUIT ALLEGES THAT MCLEAN MCCARTHY UNLAWFULLY PROVIDED INFORMATION ABOUT MUSTO'S SHAREHOLDERS TO METALL INCLUDING THE INVESTMENT OBJECTIVES OF SOME SHAREHOLDERS A METALL OFFICIAL SAID MCLEAN MCCARTHY DIDN'T PROVIDE ANY UNLAWFUL INFORMATION TO METALL MCLEAN MCCARTHY OFFICIALS WEREN'T AVAILABLE FOR COMMENT 9402020053 940202 INTERNATIONAL BANESTO SHARES ARE DOWN 57 AS TRADES RESUME SPECIAL TO THE WALL STREET JOURNAL MADRID THE SHARE PRICE OF BANCO ESPANOL DE CREDITO KNOWN AS BANESTO PLUMMETED 57 YESTERDAY AS IT RESUMED TRADING AFTER BEING SUSPENDED FOR MORE THAN A MONTH THE SHARES CLOSED AT 855 PESETAS 611 IN HEAVY TRADING SINKING FROM THEIR PREVIOUS CLOSE OF 1995 PESETAS DEC 28 THE DAY THE SPANISH CENTRAL BANK DISMISSED THE BOARD AND ASSUMED CONTROL OF THE TROUBLED BANK STILL MARKET ANALYSTS IN MADRID SAID THE BANESTO SHARES FARED BETTER THAN MANY HAD EXPECTED LAST WEEK SOME ANALYSTS WERE SPECULATING THAT THE STOCK COULD FALL AS MUCH AS 75 WHEN TRADING RESUMED NO ONE WAS EXPECTING IT TO GO THIS HIGH SAID JAVIER SUNYE SENIOR SALESMAN AT MADRID BROKERAGE CONCERN BENITO Y MONJARDIN SVB PEOPLE ARE JUST TAKING POSITIONS FOR THE SHORT TERM SPECULATING WITH THE STOCK MANY ANALYSTS AGREED THAT THERE'S NOT ENOUGH INFORMATION TO HELP SHAREHOLDERS DECIDE WHAT TO DO WITH THEIR BANESTO SHARES AND THEY SUSPECT THAT SMALL SHAREHOLDERS ARE CONFUSED THE BIG QUESTIONS LOOMING ARE THE DETAILS OF A 180 BILLIONPESETA RIGHTS ISSUE AS WELL AS A SHAREHOLDERS MEETING SCHEDULED FOR MARCH AND WHETHER SOME OTHER BANK WILL ACQUIRE BANESTO ANALYSTS AND DEALERS AGREED THAT TRADING IN THE COMING DAYS COULD BE RADICALLY DIFFERENT FROM THE FIRST DAY AS THE SHAREHOLDERS WHO HELD BANESTO STOCK BEFORE IT WAS TAKEN OVER BECOME MORE ACTIVE IN THE MARKET WE DON'T KNOW WHAT THE MAN ON THE STREET IS THINKING AND THAT'S WHO REALLY COUNTS NOW SAID ANA BELEN COLMENERO A BANKING ANALYST AT MAXWELL ESPINOSA AVB IN MADRID A TEAM LED BY BANCO BILBAO VIZCAYA VICE CHAIRMAN ALFREDO SAENZ IS IN CHARGE OF DRAWING UP A RESTRUCTURING PLAN FOR BANESTO 9402020052 940202 LETTERS TO THE EDITOR MAMMOGRAMS DO HELP REDUCE CANCER DEATHS DR BERNADINE HEALY'S ARTICLE MAMMOGRAMS YOUR BREASTS YOUR CHOICE EDITORIAL PAGE DEC 28 CLEARLY OUTLINED THE WEAKNESSES IN THE RECENT DECISIONS THAT HAVE ELIMINATED SUPPORT FOR BREAST CANCER SCREENING FOR WOMEN AGES 4049 DR LEE F NEWCOMER'S LETTER TO THE EDITOR CRITICAL OF DR HEALY'S REVIEW THE MAMMOGRAPHY CONTROVERSY JAN 19 IS AN EXAMPLE OF HOW HEALTH PLANNERS WILL USE WHAT THEY HAVE READ WITHOUT DETERMINING THE ACCURACY OF THE ANALYSES TO MAKE MAJOR HEALTHPOLICY DECISIONS DR NEWCOMER'S STATEMENT THAT THE EIGHT TRIALS FAILED TO SHOW ANY BENEFIT IS SIMPLY INCORRECT IN FACT ONE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM BREAST CANCER FOR WOMEN AGES 4049 BY 22 AS IN THE EDINBURGH TRIAL TO AS MUCH AS 49 IN THE MALMO TRIAL THE REASON THE DATA ARE NOT STATISTICALLY SIGNIFICANT IS THAT MATHEMATICALLY THEY CANNOT BE SIGNIFICANT EVEN THE NATIONAL CANCER INSTITUTE HAS ACKNOWLEDGED THAT THERE HAVE NOT BEEN ENOUGH WOMEN IN THE TRIALS AGES 4049 TO PERMIT THE RESULTS TO BE STATISTICALLY SIGNIFICANT DR NEWCOMER'S COMMENTS ARE BASED ON OLD DATA THE SWEDISH TRIAL THAT HE CITED AS SHOWING EXCESS DEATHS AMONG SCREENED WOMEN IS THE MALMO TRIAL WHICH DEMONSTRATES A 49 REDUCTION IN BREAST CANCER DEATHS FOR WOMEN AGES 4049 THERE IS AMPLE EVIDENCE THAT NOTHING MAGICAL HAPPENS AT AGE 50 THAT SUDDENLY ALLOWS SCREENING TO WORK IF ALL OF THE AVAILABLE DATA ARE REVIEWED THERE IS CLEARLY A BENEFIT FOR SCREENING WOMEN AGES 4049 AS THERE IS FOR WOMEN AGES 5059 AS NATIONAL MEDICAL DIRECTOR FOR A LARGE HEALTHCARE ORGANIZATION DR NEWCOMER SHOULD HEED HIS OWN ADVICE FROM MARK TWAIN CONCERNING HALFEDUCATED PHYSICIANS HE AND HIS COLLEAGUES HAVE A RESPONSIBILITY TO THOSE WHOSE CARE THEY DETERMINE TO KNOW AND UNDERSTAND THE MOST RECENT SCIENTIFIC INFORMATION IN A LETTER TO THE EDITOR YESTERDAY ON BREAST CANCER THERE WAS A SIGNIFICANT TYPOGRAPHICAL ERROR IN ONE SENTENCE IT SHOULD HAVE READ IN FACT FIVE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM CANCER FOR WOMEN AGES 4049 BY 22 AS IN THE EDINBURGH TRIAL TO AS MUCH AS 49 IN THE MALMO TRIAL 9402020051 940202 CLINTON MAY LIFT EMBARGO ON VIETNAM THIS WEEK WASHINGTON PRESIDENT CLINTON COULD ANNOUNCE THIS WEEK THAT HE HAS DECIDED TO LIFT THE US TRADE EMBARGO ON VIETNAM ACCORDING TO A SENIOR US OFFICIAL MR CLINTON'S SENIOR ADVISERS IN DECEMBER RECOMMENDED SUCH A MOVE BASED ON WHAT THEY SAW AS HANOI'S INCREASING COOPERATION IN EFFORTS TO HELP THE US RESOLVE CASES OF UNACCOUNTEDFOR US SOLDIERS FROM THE VIETNAM WAR IN A BIPARTISAN VOTE LAST WEEK THE SENATE APPROVED A NONBINDING RESOLUTION CALLING FOR LIFTING THE 19YEAROLD EMBARGO A SENIOR OFFICIAL SAID LAST NIGHT THAT WHILE MR CLINTON HASN'T MADE A FINAL DECISION THINGS ARE TENDING IN THAT DIRECTION US OFFICIALS ACKNOWLEDGE THAT THE DECISON IS AN EMOTIONAL AND DIFFICULT ONE FOR MR CLINTON WHO AVOIDED MILITARY SERVICE IN THE VIETNAM WAR SEVERAL GROUPS THAT REPRESENT FAMILIES OF THOSE MISSING OR UNACCOUNTED FOR FROM THE WAR STRONGLY OPPOSE LIFTING THE EMBARGO AT THIS TIME THESE GROUPS BELIEVE THAT VIETNAM SHOULDN'T BE REWARDED BECAUSE ITS LEADERS STILL ARE HOLDING BACK INFORMATION OR REMAINS OF SERVICEMEN KILLED IN VIETNAM ON THE OTHER HAND THERE IS PRESSURE ON THE WHITE HOUSE TO LIFT THE EMBARGO FROM US COMPANIES THAT BELIEVE THAT THEY ARE MISSING OUT ON A MARKET OF 70 MILLION CONSUMERS IN A COUNTRY THAT HAS EXPERIENCED RAPID ECONOMIC GROWTH OVER THE PAST FEW YEARS NEARLY ALL OTHER NATIONS IGNORE THE US EMBARGO AND ARE CARVING UP MARKETS IN VIETNAM 9402020050 940202 PUBLIC COMMENT IS SOUGHT ON MELLONDREYFUS MERGER WASHINGTON TWO HOUSE COMMITTEE CHAIRMEN ASKED THE COMPTROLLER OF THE CURRENCY TO TAKE THE UNUSUAL STEP OF SEEKING PUBLIC COMMENT ON THE PROPOSED PURCHASE OF DREYFUS CORP BY MELLON BANK CORP COMPTROLLER EUGENE LUDWIG MUST APPROVE THE MERGER OF DREYFUS'S MUTUALFUND BUSINESS INTO MELLON'S RETAILBANKING OPERATIONS BUT DEMOCRATIC REPS JOHN DINGELL OF MICHIGAN AND HENRY GONZALEZ OF TEXAS SAID THEY WANT MR LUDWIG TO GIVE THE DEAL A WIDER AIRING MR DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND ITS SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS SAID HE WILL SCHEDULE HEARINGS ON THE TRANSACTION REP DINGELL AND REP GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE WANT MR LUDWIG TO BRIEF THEM ON THE ACQUISITION BEFORE HE APPROVES IT THE TWO CHAIRMEN HAVE QUESTIONED THE TRANSACTION FOCUSING ON THE ABILITY OF FEDERAL BANKING REGULATORS TO ADEQUATELY ASSESS THE SECURITIES ACTIVITIES OF BANKS YESTERDAY THE TWO CHAIRMEN ASKED FOR MORE DOCUMENTS AND INFORMATION FROM MELLON DREYFUS AND MR LUDWIG A SPOKESMAN FOR MELLON SAID THE BANK WILL RESPOND TO ANY QUESTIONS AND SAID IT IS CONFIDENT THE ACQUISITION OF DREYFUS WILL BE APPROVED AND COMPLETED 9402020049 940202 BUSINESS BRIEF JOHNSON & JOHNSON NET RISES ON COSTCUTTING AND IMPROVED PRODUCTIVITY JOHNSON & JOHNSON SAID FOURTHQUARTER NET INCOME ROSE 91 MAINLY THROUGH COSTCUTTING AND PRODUCTIVITY GAINS NET INCOME WAS 335 MILLION OR 52 CENTS A SHARE COMPARED WITH 307 MILLION OR 47 CENTS A SHARE A YEAR AGO SALES FOR THE QUARTER WERE 353 BILLION UP SLIGHTLY FROM 35 BILLION A YEAR EARLIER THE HEALTHCARE COMPANY WHICH IS BASED IN NEW BRUNSWICK NJ SAID WITHOUT THE NEGATIVE IMPACT OF CURRENCY TRANSLATION WORLDWIDE SALES WOULD HAVE GROWN BY 7 JOHNSON & JOHNSON SAID IT WILL KEEP LOOKING FOR WAYS TO REENGINEER THE COMPANY AND SAID IT SEES MUCH OF ITS FUTURE GROWTH IN SUCH DEVELOPING MARKETS AS EASTERN EUROPE AND CHINA IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE JOHNSON & JOHNSON STOCK CLOSED AT 42125 DOWN 25 CENTS FOR THE FULL YEAR NET INCOME ROSE 74 TO 179 BILLION OR 274 A SHARE FROM 103 BILLION OR 156 A SHARE THE 1992 RESULTS INCLUDED A 595 MILLION CHARGE FOR ACCOUNTING CHANGES SALES FOR THE YEAR EDGED UP 28 TO 1414 BILLION 9402020048 940202 NEW YORK STATE STUDYING PRUDENTIAL AGENTS' SALES NEWARK NJ THE NEW YORK STATE INSURANCE DEPARTMENT HAS BEGUN TO LOOK INTO WHETHER INSURANCE AGENTS WITH PRUDENTIAL INSURANCE CO OF AMERICA SOLD LIMITED PARTNERSHIPS IN THE STATE WITHOUT THE PROPER LICENSE NEW YORK IS THE SECOND STATE TO EXPLORE WHETHER INSURANCE AGENTS IN ADDITION TO STOCKBROKERS SOLD THE PARTNERSHIPS THAT HAVE GOTTEN PRUDENTIAL'S BROKERAGE FIRM PRUDENTIAL SECURITIES INTO TROUBLE NEW YORK SAID IT IS GATHERING INFORMATION FOR WHAT COULD LEAD TO AN INVESTIGATION IN 1991 OREGON ALLEGED THAT SOME PRUDENTIAL INSURANCE AGENTS SOLD THE PARTNERSHIPS WITHOUT THE PROPER LICENSE PRUDENTIAL EVENTUALLY SETTLED THE CHARGES THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION ARE CURRENTLY INVESTIGATING WHETHER THE PRACTICE WAS WIDESPREAD PRUDENTIAL SAID IT KNOWS OF NO NEW YORK AGENTS WHO IMPROPERLY SOLD THE PARTNERSHIPS THE COMPANY SAID IT ROUTINELY RECEIVES INQUIRIES FROM STATE INSURANCE DEPARTMENTS 9402020047 940202 NEW SPECIES OF BUMPER STICKER EXCITES INTEREST IN US SOUTHWEST BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THEY'RE POPPING UP ALL OVER THE SOUTHWEST AUTOMOBILE ORNAMENTS IN THE SHAPE OF TWOLEGGED FISH THAT LOOK LIKE THEY SWALLOWED THE WORD DARWIN THAT'S DARWIN AS IN CHARLES DARWIN THE EVOLUTIONIST THE SIXINCHLONG SILVERY PLASTIC BUMPER PLAQUES ARE A TONGUEINCHEEK OFFSHOOT OF THEIR POPULAR FISHSHAPED COUSINS WHICH ADORN THE REAR PANELS OF MANY CARS AS A TRADITIONAL SYMBOL OF CHRISTIAN FAITH BUT FINDING DARWIN IS A TASK FOR THE FITTEST THE CREATURE IS MADE BY EVOLUTION DESIGN A ONEWOMAN AUSTIN TEXAS COMPANY THAT DOESN'T ADVERTISE SO FOLKS HAVE TO RELY ON WORD OF MOUTH OR DETECTIVE WORK TO TRACK DOWN THEIR PREY ALEX KARASIK A STUDENT IN BERKELEY CALIF CRAVED ONE HE FINALLY SAW A WOMAN SLEEPING IN HER DARWINDECORATED CAR AND BANGED ON THE WINDOW TO FIND OUT WHERE SHE BOUGHT HERS ANSWER DARK CARNIVAL A BERKELEY SCIENCEFICTION BOOKSTORE THAT SELLS ABOUT 100 A WEEK AT 495 EACH OTHER DARWINDECORATED PRODUCTS INCLUDE LAPEL PINS AND TSHIRTS ONE OF WHICH SAYS ON THE BACK SUPPORT THE THEORY OF EVOLUTION 400 BILLION AMPHIBIANS CAN'T ALL BE WRONG SOME PEOPLE TAKE OFFENSE PARRIS MCBRIDE WHOSE 1981 JEEP SPORTS A DARWIN SAYS AN ANGRY STRANGER CONFRONTED HER IN A PARKING LOT AND TOLD HER SHE WAS UNCHRISTIAN A DARK CARNIVAL CUSTOMER FOUND HIS BUMPER PLAQUE BROKEN IN PIECES AND PROMPTLY BOUGHT 10 MORE BUT ONE MAKER OF CHRISTIAN FISH DOESN'T MIND THE TAKEOFF I DON'T NECESSARILY AGREE BUT THAT'S FINE SAYS WALT MARKUS WHOSE GATEWAY PRESS INC IN MURPHYS CALIF MAKES SEVERAL VARIATIONS OF THE ORIGINAL FISH WHEN SOMEONE COPIES YOUR IDEA IT'S A NICE FORM OF FLATTERY 9402020046 940202 BUSINESS BRIEF DESIGNATRONICS INC NEW DIVISION WILL MARKET JAPANESE FIRM'S COMPONENTS DESIGNATRONICS INC SAID IT SET UP A DIVISION TO MARKET COMPONENTS MADE BY JAPAN'S KOHARA GEAR CO DESIGNATRONICS ALSO SAID IT EXPECTS HIGHER FISCAL SECONDQUARTER SALES AND EARNINGS FROM CONTINUING OPERATIONS DESIGNATRONICS BASED IN NEW HYDE PARK NY MAKES SMALL MECHANICAL ELECTROMECHANICAL AND AUTOMATION COMPONENTS IT SAID IN A MEETING WITH ANALYSTS THAT ITS NEW QUALITY TRANSMISSION COMPONENTS DIVISION WILL MARKET LARGER COMPONENTS FROM KOHARA MARTIN HOFFMAN DESIGNATRONICS' CHIEF EXECUTIVE SAID HE EXPECTS AN EARNINGS INCREASE OF AT LEAST 10 FROM CONTINUING OPERATIONS FOR THE FISCAL SECOND QUARTER ENDING FEB 28 THE COMPANY HAD EARNINGS OF 259000 FROM CONTINUING OPERATIONS ON SALES OF 57 MILLION A YEAR EARLIER 9402020045 940202 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A EUROPEAN UNION ADVISORY PANEL WHICH HAS STUDIED THE AIRLINE INDUSTRY SINCE LAST JULY URGED THE EU TO GET TOUGHER ON SUBSIDIES TO STATEOWNED CARRIERS AND ENCOURAGE DEREGULATION THE COMMITTEE'S REPORT WHICH ISN'T BINDING ALSO RECOMMENDS HARMONIZING EU RULES THAT AFFECT THE AVIATION INDUSTRY ADOPTING A SINGLE POLICY REGARDING OPERATIONS BY NONEU AIRLINES AND GIVING CARRIERS MORE FAVORABLE TAX TREATMENT THE REPORT DREW JEERS FROM TRANSPORT UNIONS WHICH FEAR JOB LOSSES FROM GREATER GLOBAL COMPETITION AND IT FACES CERTAIN OPPOSITION FROM PROTECTIONIST POLITICIANS BUT THE INDUSTRY'S FREEMARKET WING PRAISED THE PANEL'S AVERSION TO NEW TAXES AND REGULATIONS AND DECLARED ITS REPORT A VICTORY FOR COMPETITION AND CONSUMERS STILL SOME INDUSTRY OFFICIALS CHARACTERIZED ONE OF THE PANEL'S RECOMMENDATIONS AS A RETREAT FROM STRICT FREEMARKET POLICIES IT WOULD ALLOW STATEOWNED AIRLINES ONETIME CASH INJECTIONS OF STATE AID IN PURSUING RESTRUCTURINGS LEADING TO PRIVATIZATIONS CHINA SAID FOREIGN BUSINESSES LAST YEAR AGREED TO INVEST A RECORD 11085 BILLION IN THE COUNTRY A 91 INCREASE FROM A YEAR EARLIER COMPLETED INVESTMENT LAST YEAR SOARED 135 TO 2575 BILLION AND THE NUMBER OF PROJECTS INITIATED BY FOREIGNFUNDED FIRMS JUMPED 71 TO 83265 THE ECONOMIC DAILY SAID THE HUGE INCREASES REFLECTED FOREIGN COMPANIES' ENTHUSIASM ABOUT BUSINESS OPPORTUNITIES AND THE GOVERNMENT'S WILLINGNESS TO GRANT THEM GREATER MARKET ACCESS THE FOREIGN MONEY PUMPED INTO CHINA IN 1993 ALONE EQUALED THE TOTAL FOR THE PREVIOUS 14 YEARS UNDER AN ECONOMIC MODERNIZATION DRIVE AUSTRALIA REVISED ITS ECONOMIC FORECASTS UNDERLINING A FASTER RECOVERY ANNUAL INFLATION COULD RUN AT 2 RATHER THAN THE 35 ESTIMATED IN AUGUST AND THE BALANCE OF PAYMENTS DEFICIT MAY NARROW FOR THE YEAR ENDING JUNE 30 THE EXPORTPACED ECONOMY MAY EXPAND 35 UP FROM A FORECAST OF 275 AND FROM 25 GROWTH LAST YEAR RETAIL SALES ARE UP EMPLOYMENT IS GROWING CONSUMER SENTIMENT IS HIGHER AND LENDING RATES LOWER STOCKS AND THE CURRENCY ARE STRONG AND BOND YIELDS ARE THE LOWEST IN A DECADE UNDER A PRIVATIZATION PLAN THE KUWAITI GOVERNMENT IS STUDYING SELLING OFF STATE ENTERPRISES WOULD TAKE FIVE YEARS THE PLAN INCLUDES SHEDDING STAKES VALUED AT 268 BILLION IN 62 COMPANIES AND PRIVATIZING SERVICES THAT ARE SUBSIDIZED OR PROVIDED FREE BY THE GOVERNMENT WHICH EMPLOYS MOST OF THE WORK FORCE KUWAIT WANTS TO TURN OVER POWER PRODUCTION TRANSPORTATION COMMUNICATIONS AND SOME OIL DEALINGS TO THE PRIVATE SECTOR KUWAIT'S ECONOMIC PROBLEMS SUCH AS A BUDGET DEFICIT WERE COMPLICATED BY A SHARP DROP IN FOREIGNINVESTMENT EARNINGS THAT HELPED BALANCE BUDGETS BEFORE THE GULF WAR THE INDIAN GOVERNMENT RAISED PRICES OF GASOLINE AND DIESEL FUEL BETWEEN 6 AND 11 IN A BID TO CUT SUBSIDIES AND REDUCE ITS BUDGET DEFICIT AMONG ECONOMIC REFORMS AND PAY FOR HIGHER EXPLORATION AND MARKETING COSTS THE INCREASES WILL BOOST BUS AND CAB FARES AND PRICES OF MERCHANDISE TRANSPORTED BY TRUCKS INDIA IMPORTS 43 OF ITS PETROLEUM AND TAXES IT HEAVILY THE FUEL ACTION CAME A DAY AFTER INCREASES IN REGULATED PRICES OF SUGAR WHEAT AND RICE SOLD THROUGH GOVERNMENT SHOPS TO 160 MILLION POOR AND MIDDLECLASS CUSTOMERS COPING WITH A 9 ANNUAL INFLATION RATE THE INTERNATIONAL OLYMPIC COMMITTEE RECEIVED A RECORD TOTAL OF 10 POTENTIAL ENTRIES IN THE RACE TO HOST THE 2002 WINTER GAMES AT YESTERDAY'S DEADLINE NOTIFICATION OF PLANNED BIDS WERE FILED BY OLYMPIC GROUPS IN SALT LAKE CITY UTAH ALMA ALTA KAZAKHSTAN GRAZ AUSTRIA JACA SPAIN OESTERSUND SWEDEN POPRADTATRY SLOVAKIA SION SWITZERLAND SOCHI RUSSIA QUEBEC CANADA AND TARVISIO ITALY BIDS WILL BE PRESENTED LATER THIS YEAR AND THE HOST CHOSEN IN JUNE 1995 SHOPPERS IN BRITAIN PAY AN AVERAGE OF 48 MORE THAN US CONSUMERS DO FOR MANY OF THE SAME PRODUCTS A BUSINESSAGE MAGAZINE SURVEY FOUND GOODS WITH SUCH PRICE GAPS INCLUDE AUTOS COMPUTERS COMPACT DISKS AND CLOTHING THE BRITISH PRESS ASSOCIATION REPORTED AMONG THE FEW RELATIVE BARGAINS IN BRITAIN WERE CONDOMS AND THEATER TICKETS THE MAGAZINE TERMED SOME OF THE DIFFERENCES STAGGERING THE SAME BLUE JEANS WERE PRICED AT 90 IN BRITAIN AND 30 IN THE US DISPOSABLE CONTACT LENSES 225 VS 87 AND A TENNIS RACKET 225 VS DEFENDING THE PRICE DIFFERENCES ONE RETAILER SAID MANUFACTURERS USE THE US FOR LAUNCHING PRODUCTS AND BRITAIN FOR MAKING PROFITS ANOTHER SAID PROPERTY PRICES MAKE GOODS MORE EXPENSIVE IN BRITAIN BUSINESSAGE SAID THE VARIOUS EXPLANATIONS DIDN'T STAND UP TO SCRUTINY THAILAND'S CABINET AGREED IN PRINCIPLE TO PROCEED WITH AN AMBITIOUS LONGDELAYED ELEVATED RAILWAY IN BANGKOK CLEARING THE TRAFFICCLOGGED CAPITAL'S TRANSIT AGENCY TO NEGOTIATE A CONSTRUCTION CONTRACT ABOUT 15000 FARMERS STUDENTS AND DISSIDENTS DEMONSTRATED IN SEOUL DEMANDING SOUTH KOREA REVOKE OR HOLD A REFERENDUM ON ITS DECISION TO OPEN ITS RICE MARKET TO IMPORTS UNDER THE NEW WORLD TRADE PACT THE PROTEST TURNED VIOLENT AND ABOUT 200 PEOPLE WERE HURT SOME SERIOUSLY 9402020044 940202 BUSINESS BRIEF POLAROID CORP FOURTHPERIOD NET ROSE 32 ON 36 INCREASE IN REVENUE POLAROID CORP BENEFITING FROM BRISK SALES OF A NEW CAMERA LINE POSTED A 32 JUMP IN FOURTHQUARTER NET INCOME TO 392 MILLION OR 83 CENTS A SHARE COMPARED WITH 296 MILLION OR 63 CENTS A YEAR EARLIER FOURTHQUARTER SALES ROSE 36 TO 6726 MILLION FROM 6492 MILLION BUT THE CAMBRIDGE MASS INSTANTCAMERA AND FILM MAKER CAUTIONED ANALYSTS LATE YESTERDAY THAT A RAMPUP IN PRODUCTION FOR THE HELIOS MEDICAL AND COMMERCIAL IMAGING LINE AND THE EXPECTED FALLOFF OF SALES UNDER A MEXICAN VOTERREGISTRATION CONTRACT COULD HURT FIRSTQUARTER PROFIT THE FIRST QUARTER AND PROBABLY THE FIRST HALF OF THE YEAR COULD BE WEAK SAID B ALEX HENDERSON AN ANALYST AT PRUDENTIAL SECURITIES POLAROID STOCK ROSE 1375 OR 41 TO CLOSE AT 35 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9402020043 940202 MARKETING & MEDIA NIKE OFFERS FUNDS TO KEEP HARDING ON OLYMPIC TEAM BEAVERTON ORE NIKE INC SAID IT WILL PUT UP 25000 TO HELP TONYA HARDING DEFEND HERSELF IF THERE IS AN EFFORT TO BOUNCE THE FIGURE SKATER FROM THE US OLYMPIC TEAM NIKE OFFICIALS SAID THE OFFER ISN'T CONTINGENT ON WHETHER MS HARDING IS GUILTY OR INNOCENT OF ALLEGATIONS BY HER EXHUSBAND THAT SHE APPROVED AN ASSAULT ON HER FIGURESKATING RIVAL NANCY KERRIGAN LAST MONTH IN DETROIT THE EXHUSBAND JEFF GILLOOLY MADE THE ALLEGATION IN A NEGOTIATED GUILTY PLEA YESTERDAY MS HARDING HASN'T BEEN CHARGED WITH ANY WRONGDOING AND NO FORMAL MOVE HAS BEEN MADE SO FAR TO BAR HER FROM OLYMPIC COMPETITION A NIKE SPOKESMAN YESTERDAY SAID THE COMPANY WAS CONCERNED WITH THE ISSUE OF ATHLETE'S RIGHTS IN THE HARDING CASE THE 25000 WOULD BE EARMARKED ONLY TO DEFEND THE FIGURE SKATER AGAINST ANY EFFORTS BY OLYMPIC COMMITTEE OFFICIALS TO KEEP HER FROM COMPETING IN THE GAMES LATER THIS MONTH HE SAID OLYMPIC COMMITTEE OFFICIALS HAVE DECLINED TO COMMENT ON MS HARDING'S SITUATION THE COMMITTEE HAS SAID IT WILL DECIDE BEFORE FEB 10 WHETHER TO STRIP THE SKATER OF HER US FIGURE SKATING ASSOCIATION MEMBERSHIP A MOVE THAT WOULD KEEP HER OUT OF THE OLYMPICS 9402020042 940202 INTERNATIONAL IRISHMAN FAILS TO OFFER CLEAR PLAN FOR PEACE BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT WASN'T QUITE THE GREAT DAY FOR THE IRISH THAT MANY HAD HOPED FOR GERRY ADAMS LEADER OF THE SINN FEIN POLITICAL PARTY USED HIS 48HOUR VISA TO THE US TO DELIVER A DENSE HISTORY LESSON BUT FAILED TO PACK A CLEARLY IDENTIFIABLE OLIVE BRANCH IN HIS OVERNIGHT BAG SPEAKING AT THE WALDORF ASTORIA TO A MOSTLY IRISHAMERICAN AUDIENCE INCLUDING LAWYERS ACADEMICS AND POLTICIANS ASSEMBLED BY THE NATIONAL COMMITTE ON AMERICAN FOREIGN POLICY MR ADAMS REPEATED HIS CALL FOR THE BRITISH GOVERNMENT TO CLARIFY ITS JOINT DECLARATION OF LAST DECEMBER WITH THE IRISH GOVERNMENT TO ACCEPT THE PRINCIPLE OF NATIONAL SELFDETERMINATION AND TO SET OUT A TIME FRAME FOR ITS REALIZATION THIS FORMULATION IN ESSENCE REPEATED THE CALL FOR A UNITED IRELAND A POSITION THAT THE PROTESTANT MAJORITY OF NORTHERN IRELAND AND THE BRITISH GOVERNMENT OPPOSE ALTHOUGH GRANTED A VISA BY PRESIDENT CLINTON ON THE GROUNDS THAT HIS VIEWS ON VIOLENCE AND A POLITICAL SETTLEMENT OF THE CONFLICT IN NORTHERN IRELAND HAD CHANGED MARKEDLY IN A MEETING LAST WEEK WITH AMERICAN DIPLOMATS MR ADAMS REFUSED TO CALL SPECIFICALLY ON THE IRISH REPUBLICAN ARMY TO LAY DOWN ITS ARMS HE ASKED INSTEAD FOR AN END TO ALL ARMED ACTIONS AND A TOTAL DEMILITARIZATION INCLUDING THE WITHDRAWAL OF BRITISH TROOPS THERE ARE 20000 BRITISH TROOPS AND 12000 ARMED POLICE IN NORTHERN IRELAND SINN FEIN WE OURSELVES IS A POLITICAL PARTY CLOSELY LINKED WITH THE IRA AND SUPPORTED BY ABOUT 40 OF NORTHERN IRELAND'S CATHOLIC MINORITY ALTHOUGH MR ADAMS 44 YEARS OLD SAYS HE HASN'T ANY ROLE IN THE IRA THE BRITISH GOVERNMENT DESCRIBES HIM AS A TERRORIST UNTIL NOW HE HAD BEEN EXCLUDED FROM THE US ON THOSE GROUNDS BUT MANY IRISH AND IRISHAMERICANS HAIL THE FORMER BARTENDER AND PROLIFIC SHORTSTORY WRITER AS A TIRELESS FIGHTER FOR A JUST PEACE FOR NORTHERN IRELAND'S CATHOLICS MR ADAMS WHOSE FATHER WAS AN IRA FIGHTER SHOT BY PROTESTANTS AND WHO HAS HIMSELF BEEN SHOT HELD WITHOUT CHARGE IN BRITISH JAILS AND BEATEN IN POLICE CELLS SAID HE'S PREPARED TO NEGOTIATE WITH ANYONE EVEN THE MAN WHO PULLED THE TRIGGER ON ME TO BRING PEACE HE ATTENDED THE CONFERENCE IN NEW YORK WITH REPRESENTATIVES FROM TWO OTHER NORTHERN IRELAND POLITICAL PARTIES DR JOHN ALDERDICE THE PROTESTANT LEADER OF THE ALLIANCE PARTY A MODERATE FORCE IN THE POLITICAL SPECTRUM AND JOHN HUME OF THE SOCIAL DEMOCRATIC AND LABOR PARTY WHICH REPRESENTS 60 OF NORTHERN IRELAND'S CATHOLIC VOTERS AND DISASSOCIATES ITSELF FROM VIOLENCE LEADERS OF TWO MOREEXTREME PROTESTANT PARTIES DECLINED INVITATIONS ONE THE REV IAN PAISLEY OF THE DEMOCRATIC UNIONIST PARTY TOLD THE CONFERENCE ORGANIZERS THAT THE MERE FACT OF MR ADAMS'S INVITATION PRECLUDED HIS TAKING PART IT'S IMPORTANT TO REALIZE THAT THE PEOPLE WHO REPRESENT MORE THAN 50 OF OPINION IN NORTHERN IRELAND AREN'T HERE TODAY SAID DR ALDERDICE A 38YEAROLD PSYCHOTHERAPIST HE SAID MR ADAMS'S REMARKS FAR FROM FURTHERING THE DIALOGUE ACTUALLY TOOK IT BACK A STEP TO STATEMENTS HE WAS MAKING BEFORE THE JOINT DECLARATION 9402020039 940202 INTERNATIONAL BRIEF ING C OLIVETTI & CO ITALIAN COMPUTER COMPANY HOPES TO BREAK EVEN IN '94 OLIVETTI REPORTED A CONSOLIDATED LOSS OF 650 MILLION LIRE 384865 IN 1992 MR DE BENEDETTI SPEAKING TO REPORTERS AT THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND WOULDN'T COMMENT ON FULLYEAR 1993 PROFIT BUT SAID THAT 1993 WAS A TURNING POINT SINCE IT WAS THE FIRST TIME IN THREE YEARS THAT SALES INCREASED OLIVETTI RECENTLY REPORTED THAT 1993 SALES WERE UP 73 TO 86 TRILLION LIRE 509 BILLION THAT SHOWED HE SAID THAT THE COMPANY HAS COMPLETED THE MOST IMPORTANT PART OF ITS RESTRUCTURING OLIVETTI SAW ITS WORK FORCE REDUCED TO 35000 IN 1993 FROM 58000 THREE YEARS AGO MR DE BENEDETTI SAID HE COULDN'T RULE OUT THE POSSIBILITY OF A CAPITAL INCREASE BUT ADDED THAT OLIVETTI DOESN'T REALLY NEED THE MONEY RIGHT NOW THE BOARD RECENTLY AGREED TO ASK SHAREHOLDERS FOR A CAPITAL INCREASE OF ONE TRILLION LIRE IN CASH AND A SIMILAR AMOUNT IN BONDS IN A FIVEYEAR PERIOD IN ONE OR MORE OPERATIONS 9402020038 940202 SEC IS URGED TO SHELVE PLAN TO BAN BOND GIFTS WASHINGTON STATE AND LOCAL GOVERNMENT FINANCE OFFICERS URGED THE SECURITIES AND EXCHANGE COMMISSION TO SHELVE A CONTROVERSIAL PROPOSAL INTENDED TO END THE USE OF POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS TO WIN BOND BUSINESS THE GOVERNMENT FINANCE OFFICERS ASSOCIATION ASSAILED THE PROPOSAL SAYING IT WOULD BE A DISADVANTAGE TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE AS WELL AS TO SMALL REGIONAL AND OTHER SECURITIES FIRMS IT SAID THE PROPOSAL RESTS ON THE ERRONEOUS ASSUMPTION THAT ANY LINK BETWEEN POLITICAL GIFTS AND THE SELECTION OF BOND UNDERWRITERS IS AN INVESTOR PROTECTION ISSUE THE ASSOCIATION'S ACTION CAME AS A SURPRISE TO REGULATORS A PROFESSIONAL ASSOCIATION OF STATE AND LOCAL FINANCE OFFICERS LONG INFLUENTIAL IN MUNICIPAL BOND REGULATORY ISSUES THE GFOA HAS WORKED CLOSELY WITH THE SEC ON OTHER MUNICIPAL BOND MATTERS AND UNTIL NOW HAD TAKEN A LOW PROFILE ON THE PROPOSAL THE PROPOSED RULE WAS DRAFTED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT IT WOULD BAR A DEALER FROM DOING BUSINESS WITH A BOND ISSUER WITHIN TWO YEARS OF THE DEALER ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL PROFESSIONALS MAKING POLITICAL GIFTS TO AN OFFICIAL OF THE ISSUER 9402020037 940202 YOUR MONEY MATTERS VARIABLE ANNUITIES ARE PROVING POPULAR BUT FEW OFFER TOPRANKED STOCK FUNDS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL INDIVIDUALS ARE SHOVELING BILLIONS OF DOLLARS INTO VARIABLE ANNUITIES THE TAXSHELTERED COUSINS OF MUTUAL FUNDS BUT SOME EXPERTS QUESTION WHETHER THOSE INVESTMENTS ARE SUCH A GOOD DEAL THE REASON IS THAT FEW VARIABLE ANNUITIES INCLUDE THE KINDS OF INVESTMENTS THAT EXPERTS RATE MOST HIGHLY TOPPERFORMING STOCK FUNDS WITH PROVEN TRACK RECORDS ABOUT ONE IN FIVE FUNDS AVAILABLE IN THE 15 LEADING VARIABLE ANNUITIES MEETS THOSE QUALITY STANDARDS TODAY THE DEARTH OF GOOD CHOICES MEANS THAT MANY VARIABLEANNUITY BUYERS MAY END UP WISHING THEY'D STUCK WITH PLAIN OLD MUTUAL FUNDS INSTEAD DESPITE SUCH SHORTCOMINGS IT'S EASY TO UNDERSTAND WHY VARIABLE ANNUITIES ARE SO POPULAR NOT ONLY DO THEY OFFER THE SAME TAX BENEFITS AS NONDEDUCTIBLE INDIVIDUAL RETIREMENT ACCOUNTS BUT THEY ALSO ALLOW UNLIMITED CONTRIBUTIONS LIKE IRAS INVESTORS CAN SWITCH THEIR MONEY AMONG THE FUNDS WITHOUT TRIGGERING TAXES AND EARNINGS ARE TAXDEFERRED UNTIL THE MONEY IS WITHDRAWN AT WHICH POINT THE GAINS ARE TAXED AS ORDINARY INCOME BUT AS WITH IRAS INVESTORS WHO WITHDRAW MONEY BEFORE THE AGE OF 59 1/2 INCUR A 10 PENALTY THE TAX PRIVILEGES APPLY TO ALL VARIABLE ANNUITIES BUT SINCE SOME OF THESE INVESTMENTS ARE MUCH BETTER BUYS THAN OTHERS IT PAYS TO BE DISCRIMINATING THE NUMBERS USUALLY SPEAK FOR THEMSELVES IF YOU KNOW WHAT TO LOOK FOR FOR INSTANCE WHEN COMPARISON SHOPPING AMONG DIFFERENT VARIABLE ANNUITIES INVESTORS SHOULD LOOK FOR A WIDE VARIETY OF INVESTMENT CHOICES PARTICULARLY A GOOD SELECTION OF STOCK FUNDS THOSE FUNDS SHOULD ALSO HAVE SUPERIOR TRACK RECORDS GOING BACK A MINIMUM OF THREE YEARS AND PREFERABLY LONGER THE EXPERTS SAY THE CHOICEST ANNUITIES OF ALL ARE THOSE THAT COMBINE TOPPERFORMING STOCK FUNDS WITH LOW ANNUAL FEES UNFORTUNATELY SUCH PEARLS AREN'T SO EASY TO FIND AMONG THE 15 HOTTESTSELLING VARIABLE ANNUITIES SOLD TO INDIVIDUALS INVESTORS MAY GET AS FEW AS FOUR OR AS MANY AS 22 INVESTMENT SELECTIONS DEPENDING ON THE CONTRACT BUT FEWER THAN HALF THE TOTAL NUMBER OF FUNDS OR 71 OUT OF 145 INVEST IN STOCKS ONLY 32 OF THOSE STOCK FUNDS ARE ABOVEAVERAGE PERFORMERS WITH PROVEN TRACK RECORDS ACCORDING TO FIGURES SUPPLIED BY MORNINGSTAR INC A CHICAGO FIRM THAT EVALUATES FUND PERFORMANCE IN VARIABLE ANNUITIES WHY ARE STOCK FUNDS SO IMPORTANT THEY TEND TO HAVE HIGHER RETURNS THAN OTHER INVESTMENTS WHICH HELPS OFFSET THE HIGH FEES THAT OTHERWISE EAT AWAY AT VARIABLE ANNUITIES INSURERS SKIM AN AVERAGE 1 1/4 FROM THE FUNDS' TOTAL ASSETS EACH YEAR AND THAT'S NOT EVEN COUNTING THE FUNDS' MANAGEMENT EXPENSES ALTOGETHER FEES IN VARIABLE ANNUITIES COMMONLY TOP 2 OF ASSETS A YEAR ROUGHLY TWICE AS MUCH AS THE ANNUAL COSTS FOR STOCK MUTUAL FUNDS ANOTHER REASON TO CHOOSE STOCK FUNDS IN ANNUITIES IS THAT THEY GIVE MORE LONGTERM BANG FOR THE BUCK INVESTORS CAN MOVE IN AND OUT OF THE FUNDS WITHOUT TRIGGERING TAXES AND THE TAXDEFERRED COMPOUNDING GOES A LOT FURTHER WHEN EARNINGS ARE HIGHER THESE POINTS APPARENTLY AREN'T BEING LOST ON INVESTORS IN 1993 INDIVIDUALS POURED ABOUT 25 BILLION OR 62 OF ALL NEW PURCHASES OF VARIABLE ANNUITIES INTO STOCK FUNDS THAT'S UP FROM 9 BILLION OR ABOUT 40 OF NEW PURCHASES A YEAR EARLIER ACCORDING TO ELI NEUSNER A CONSULTANT FOR CERULLI ASSOCIATES A FINANCIALCONSULTING FIRM IN BOSTON THE MOST POPULAR CHOICES WERE BALANCED FUNDS WHICH INCLUDE STOCKS AND BONDS FOLLOWED BY GROWTH FUNDS GROWTHANDINCOME FUNDS WHICH INCLUDE STOCKS THAT PAY HIGH DIVIDENDS SMALLCOMPANY STOCK FUNDS AND INTERNATIONAL STOCK FUNDS MR NEUSNER SAYS SOME OF THE BIGGEST VARIABLE ANNUITIES DO OFFER STOCK FUNDS WITH GOOD LONGTERM PERFORMANCE AND A FULLY DIVERSIFIED SET OF INVESTMENT OBJECTIVES INCLUDING FRANKLIN VALUMARK II BEST OF AMERICAN IV/NATIONWIDE AND PRUDENTIAL DISCOVERY PLUS ON THE OTHER END OF THE SPECTRUM LINCOLN NATIONAL MULTI FUND MASSACHUSETTS MUTUAL FLEX V AND VALIC SEPARATE ACCOUNT A HAVE NO STOCK FUNDS OLDER THAN THREE YEARS WITH ABOVEAVERAGE PERFORMANCE SIZE ISN'T NECESSARILY AN ADVANTAGE AS SOME OF THE BEST BUYS ARE TO BE FOUND AMONG SMALLER VARIABLE ANNUITIES ONE WORTH CONSIDERING IS SCUDDER HORIZON PLAN FROM SCUDDER STEVENS & CLARK OF BOSTON THE THREEYEAR TRACK RECORDS OF ITS GROWTH BALANCED AND INTERNATIONAL FUNDS ALL RANK IN THE TOP THIRD OF THEIR INVESTMENT CATEGORIES AT THE SAME TIME THE FUNDS' EXPENSES ARE BELOW AVERAGE THEIR ANNUAL INSURANCE CHARGES TOTAL ONLY 070 COMPARED WITH AN INDUSTRY AVERAGE OF 125 AND THEY DON'T HAVE SURRENDER PENALTIES MOST ANNUITIES HAVE SURRENDER PENALTIES THAT AMOUNT TO ABOUT 7 IN THE FIRST YEAR AND LAST SEVEN YEARS OR LONGER ANOTHER SMALLER VARIABLE ANNUITY THAT MIGHT BE WORTH A LOOK IS THE COMMONWEALTH PLAN FROM LIFE OF VIRGINIA A RICHMOND VA INSURER IT HAS SIX STOCK FUNDS WHOSE THREEYEAR RETURNS RANK IN THE TOP THIRD OF THEIR INVESTMENT CATEGORIES IN ADDITION ITS TWO HIGHYIELD FUNDS ITS GOVERNMENT BOND FUND AND ITS CORPORATE BOND FUND WERE ALSO GOOD PERFORMERS LIKE MANY ANNUITIES LIFE OF VIRGINIA INCLUDES BOTH FUNDS MANAGED BY OUTSIDE MUTUALFUND COMPANIES AND FUNDS RUN INTERNALLY BY THE INSURERS' OWN INVESTMENT MANAGERS THREE OF THE COMPANY'S TOPPERFORMING STOCK FUNDS ARE MANAGED BY FIDELITY INVESTMENTS OF BOSTON TWO BY LIFE OF VIRGINIA AND ONE BY OPPENHEIMER MANAGEMENT CORP A NEW YORK UNIT OF MASSACHUSETTS MUTUAL LIFE INSURANCE CO HOWEVER LIFE OF VIRGINIA'S ANNUAL INSURANCE CHARGES ARE SLIGHTLY ABOVE AVERAGE AT 130 A YEAR THE INVESTMENT MANAGEMENT EXPENSES ON ITS FUNDS RANGE FROM BELOW AVERAGE FOR FUNDS MANAGED BY OUTSIDE MUTUALFUND COMPANIES TO ABOVE AVERAGE FOR INTERNALLY MANAGED FUNDS IF AN ANNUITY YOU OWN OR ARE THINKING OF BUYING DOESN'T HAVE A CLUSTER OF PROVEN STOCK FUNDS DON'T ASSUME THE CONTRACT IS A DOG SOME OF ITS STOCK FUNDS MAY BE CLOSE TO COMPLETING GOOD THREEYEAR TRACK RECORDS OR THE VARIABLEANNUITY ISSUER MAY BE PLANNING TO ADD OTHER TOPPERFORMING STOCK FUNDS THAT DO HAVE PROVEN TRACK RECORDS FOR EXAMPLE THE TOPPERFORMING FIDELITY FUNDS AVAILABLE IN LIFE OF VIRGINIA ARE ALSO INCLUDED IN A DOZEN OTHER VARIABLE ANNUITY CONTRACTS OFFERED BY OTHER INSURANCE COMPANIES SEVERAL OTHER ANNUITY ISSUERS ARE CURRENTLY NEGOTIATING TO ADD THESE AND OTHER TOPPERFORMING FUNDS BY OTHER MUTUALFUND COMPANIES TO THEIR VARIABLE ANNUITIES 9402020033 940202 DIVIDEND NEWS UTAH MEDICAL PRODUCTS INC UTAH MEDICAL PRODUCTS INC SALT LAKE CITY SAID IT SUSPENDED ITS QUARTERLY DIVIDEND IN FAVOR OF REPURCHASING 3 MILLION OF THE COMPANY'S SHARES THE MAKER OF MEDICAL DEVICES SAID THE BUYBACK WOULD BE CONDUCTED OVER THE NEXT YEAR DURING THE PAST TWO YEARS THE COMPANY HAS REPURCHASED ABOUT ONE MILLION OF ITS SHARES CURRENTLY IT HAS ABOUT 11 MILLION SHARES OUTSTANDING 9402020032 940202 WHO'S NEWS CS FIRST BOSTON IS SAID TO LURE BACK WARD FROM WASSERSTEIN NEW YORK CS FIRST BOSTON IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY THAT CHARLES G WARD III COPRESIDENT OF ONETIME MERGER POWERHOUSE WASSERSTEIN PERELLA & CO IS REJOINING FIRST BOSTON AS WORLDWIDE HEAD OF INVESTMENT BANKING IT'S A CAREER UTURN FOR MR WARD WHO SERVED AS COHEAD OF MERGERS AT FIRST BOSTON UNTIL HIS HIGHLY PUBLICIZED DEPARTURE ALONG WITH BRUCE WASSERSTEIN AND JOSEPH PERELLA IN 1988 THEIR RIVAL BOUTIQUE WENT ON TO SUCCESS WITH THE HOSTILE TAKEOVERS THAT WERE THE TRADEMARK OF WALL STREET IN THE LATE 1980S FIRST BOSTON OFFICIALS COULD NOT BE REACHED FOR COMMENT PEOPLE CLOSE TO MR WARD SAY HE HAS BEEN TOLD THAT THE POSITION HE IS TAKING COULD LEAD TO HIGHER RESPONSIBILITIES AT CS FIRST BOSTON MR WARD LEAVES WASSERSTEIN HARD ON THE HEELS OF MR PERELLA WHO JOINED MORGAN STANLEY GROUP INC IN NOVEMBER AS A MANAGING DIRECTOR IN INVESTMENT BANKING THIS SECOND HIGHPROFILE EXIT FROM WASSERSTEIN COMES AS THE MERGERS BOUTIQUE GRAPPLES WITH A STRATEGIC SHIFT ON WALL STREET WHEN THE FIRM WAS FOUNDED IN 1988 THE MERGER BUSINESS WAS SIZZLING IN THE EARLY 1990S MERGER ACTIVITY COOLED AND THE FIRM HAS TRIED TO BRANCH OUT WITH LIMITED SUCCESS INTO SECURITIES UNDERWRITING CURRENCY TRADING DERIVATIVES TRADING AND OTHER AREAS BUT NOW THE MERGERS BUSINESS IS HEATING UP AGAIN CS FIRST BOSTON FRESH FROM A CORPORATE REORGANIZATION THAT DEEMPHASIZED ITS GEOGRAPHICAL DIVISIONS AND SOUGHT TO INTEGRATE THE NEW YORK BROKERAGE FIRM MORE CLOSELY WITH ITS SWISS PARENT CS HOLDING AG IS APPARENTLY ATTEMPTING TO REGAIN ITS FORMER GLORY IN THE MERGERS FIELD 9402020031 940202 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO 11122 FROM A REVISED 11129 THE PRIOR WEEK BUT THE ANNUAL CHANGE IN THE INDEX ROSE TO 284 FROM 27 SUGGESTING A MILD UPTURN IN THE STATE'S ECONOMICGROWTH RATE CONTRIBUTING TO THE YEAROVERYEAR INCREASE THE HELP WANTED INDEX ROSE IN EARLY JANUARY INITIAL UNEMPLOYMENT CLAIMS FELL AND CONSUMER CONFIDENCE JUMPED 9402020030 940202 BUSINESS BRIEF TOTES INC WASSERSTEIN WILL EVALUATE POSSIBLE OUTSIDE INVESTORS TOTES INC A MAKER OF UMBRELLAS AND OTHER PRODUCTS SAID IT HIRED THE INVESTMENT BANKING FIRM OF WASSERSTEIN PERELLA & CO TO EVALUATE THE POSSIBILITY OF OUTSIDE INVESTORS ACQUIRING A STAKE IN THE COMPANY THE CLOSELY HELD COMPANY DIDN'T SAY WHICH COMPANIES OR INDIVIDUALS MIGHT HAVE MADE AN OFFER TOWARD ACQUIRING A STAKE IN TOTES WHICH IS BASED IN LOVELAND OHIO BUT IT STRESSED THAT IT DIDN'T WANT TO MAKE SIGNIFICANT CHANGES IN STRATEGIC DIRECTION OR MANAGEMENT CONTROL IN ANY SUCH TRANSACTION 9402020029 940202 BUSINESS BRIEF RJR POSTS 461 MILLION 4THPERIOD LOSS LARGELY DUE TO CHARGE TIED TO JOB CUTS RJR NABISCO HOLDINGS INC POSTED A FOURTHQUARTER LOSS OF 461 MILLION OR 35 CENTS A SHARE LARGELY REFLECTING A PREVIOUSLY ANNOUNCED CHARGE RELATED TO WORKFORCE CUTS BUT THE NEW YORK COMPANY SAID THAT THE JOB CUTS WILL POSITION THE COMPANY TO EMBARK ON AN AGGRESSIVE EARNINGS GROWTH TRACK STARTING IN 1994 RJR'S LARGE FOURTHQUARTER LOSS COMPARES WITH A PROFIT OF 45 MILLION OR FOUR CENTS A SHARE FOR THE YEAREARLIER QUARTER SALES FELL SLIGHTLY TO 405 BILLION FROM 409 BILLION THE FOURTHQUARTER LOSS ALSO INCLUDED A 32 MILLION CHARGE TO PAY FOR THE EARLY RETIREMENT OF DEBT AND CHARLES M HARPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY PLANNED TO RETIRE ADDITIONAL DEBT THIS YEAR IN A PREPARED STATEMENT MR HARPER SAID WE ARE CAUTIOUSLY OPTIMISTIC ABOUT DOMESTIC TOBACCO AND BELIEVE A RETURN TO SOLID EARNINGS GROWTH IN 1994 IS ACHIEVABLE IN THAT SECTOR ANALYSTS SAID THAT WAS MR HARPER'S MOST POSITIVE COMMENT YET ON THE US TOBACCO BUSINESS WHICH HAS BEEN BATTERED BY A PRICE WAR HE IS GETTING A BIT MORE BULLISH ON DOMESTIC TOBACCO SAID RONALD MORROW A TOBACCO ANALYST WITH SMITH BARNEY & UPHAM INC IN INTERVIEWS LAST YEAR MR HARPER SAID HE DIDN'T SEE US TOBACCO AS A LONGTERM GROWTH BUSINESS RECENTLY CIGARETTE COMPANIES HAVE RAISED PRICES MODERATELY AND ADDITIONAL SUCH INCREASES ARE EXPECTED FOR THE FOURTH QUARTER RJR SAID ITS NABISCO FOOD BUSINESS'S OPERATING PROFIT INCREASED 16 RJR'S STOCK CLOSED YESTERDAY AT 7375 A SHARE DOWN 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9402020028 940202 INSIDE TRACK CONTINENTAL BANK INSIDERS BOUGHT DURING TALKS BY WARREN GETLER AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL TWO OUTSIDE DIRECTORS OF CONTINENTAL BANK CORP BOUGHT SHARES IN THE COMPANY DURING TALKS THAT LED TO LAST WEEK'S PROPOSED 19 BILLION ACQUISITION OF THE CHICAGOBASED BANK BY BANKAMERICA CORP NEWS OF THE FRIENDLY BID FRIDAY SENT CONTINENTAL UP 22 TO 34 A SHARE FROM 27875 THAT DAY YESTERDAY THE STOCK CLOSED AT 3475 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DIRECTOR BERT GETZ PURCHASED 10000 SHARES AT 24 APIECE NOV 19 AND DIRECTOR GORDON SEGAL BOUGHT 1000 SHARES OCT 29 AT 2638 EACH SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR SEGAL IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CRATE & BARREL A CHICAGOBASED HOUSEWEAR RETAILER AND MR GETZ IS CHAIRMAN AND PRESIDENT OF GLOBE CORP A CLOSELY HELD INVESTMENT COMPANY MR GETZ'S PURCHASE WAS HIS FIRST OPENMARKET ACQUISITION OF CONTINENTAL SHARES SINCE REGISTERING AS AN INSIDER IN OCTOBER 1992 AND MR SEGAL'S PURCHASE WAS HIS FIRST OPENMARKET PURCHASE SINCE HE REGISTERED IN APRIL 1991 SEC DATA INDICATE THE CHAIRMEN OF THE TWO COMPANIES BEGAN DISCUSSIONS IN AUGUST AND THOSE TALKS INTENSIFIED DURING THE PAST THREE MONTHS CULMINATING IN FRIDAY'S ANNOUNCEMENT ON FRIDAY A CONTINENTAL BANK SPOKESMAN SAID THE PURCHASES BY THE TWO DIRECTORS WERE MADE BASED ON PERSONAL INVESTMENT DECISIONS HE SAID THE TWO DIRECTORS RECEIVED ADVICE OF THE BANK'S GENERAL COUNSEL AND WERE ASSURED THAT NOTHING WAS IN THE WORKS AT THAT STAGE TO PRECLUDE DOING THAT YESTERDAY LISA HEWITT A SPOKESWOMAN FOR THE BANK SAID THERE WERE DISCUSSIONS BUT NO DEAL WHEN THE PURCHASES WERE MADE THE BOARD HADN'T BEEN PRESENTED A DEAL SHE SAID MR SEGAL SAID HE BOUGHT SHARES IN THE OPEN MARKET BECAUSE I WANTED A BIGGER PERCENTAGE OF MY BANK DIRECTOR'S INCOME TO BE IN SHARES INSTEAD OF CASH HE ADDED THAT THERE HAD BEEN NO DISCUSSION OF BANKAMERICA AT THE TIME A SPOKESMAN FOR MR GETZ SAID HE BUYS STOCK IN COMPANIES ON WHOSE BOARD HE SITS TYPICALLY WITH DIRECTOR'S FEES THE SPOKESMAN SAID MR GETZ BELIEVES DIRECTORS OF COMPANIES SHOULD BE OWNERS AS WELL CONTINENTAL AND ITS CHAIRMAN THOMAS THEOBALD HAVE BEEN IN THE FOREFRONT AMONG COMPANIES REQUIRING EMPLOYEES TO PURCHASE STOCK TYING AT LEAST TO SOME EXTENT THEIR PERSONAL FORTUNES TO THEIR COMPANY'S PERFORMANCE CONTINENTAL DIRECTORS ARE ENCOURAGED TO PURCHASE STOCK MS HEWITT SAID BUT NOT REQUIRED SEC GUIDELINES REQUIRE THAT CORPORATE EXECUTIVES AND DIRECTORS AS WELL AS OTHER INSIDERS ABSTAIN FROM BUYING OR SELLING COMPANY STOCK WHEN IN POSSESSION OF NONPUBLIC MATERIAL INFORMATION OR THAT THEY DISCLOSE THAT INFORMATION BEFORE UNDERTAKING ANY SUCH ACTIVITY PRECISELY WHAT INSIDERS MAY OR MAY NOT HAVE KNOWN AND WHEN THEY MAY HAVE KNOWN IT ARE CRITICAL FACTORS IN DETERMINING WHETHER INSIDER ACTIVITY BUMPS UP AGAINST SEC REGULATIONS SECURITIES LAWYERS SAID SEC OFFICIALS WOULDN'T COMMENT ON WHETHER THEY WERE LOOKING INTO THE MATTER I COULD UNDERSTAND WHY GIVEN THE PROXIMITY OF THE PURCHASES TO THE ANNOUNCEMENT OF THE BID THAT A PERSON MIGHT WANT TO CONSIDER THE POSSIBILITY OF A VIOLATION SAID PETER ROMEO A FORMER SEC ATTORNEY AND NOW A PARTNER WITH HOGAN & HARTSON A WASHINGTON LAW FIRM MR ROMEO SAID THE ISSUE WOULD BE WHETHER THE INFORMATION ABOUT THE PROPOSED SALE OF THE COMPANY WAS MATERIAL AT THE TIME THE INSIDERS BOUGHT STOCK BROADLY INFORMATION IS REGARDED AS MATERIAL IF IS IMPORTANT TO INVESTORS IN MAKING AN INVESTMENT DECISION HE SAID THE SUPREME COURT HAS SAID THAT INFORMATION ABOUT A SPECULATIVE EVENT IS MATERIAL' IF ITS MAGNITUDE TO THE COMPANY AND THE PROBABILITY THAT IT WILL OCCUR ARE SIGNIFICANTLY GREAT WHEN BALANCED WITH EACH OTHER AND SUCH THAT INVESTORS WOULD CONSIDER IT IMPORTANT AROUND THE TIME THAT MESSRS GETZ AND SEGAL WERE ACQUIRING SHARES IN THE OPEN MARKET RICHARD HUBER VICE CHAIRMAN EXERCISED OPTIONS TO ACQUIRE 44000 SHARES AT AN EXERCISE PRICE OF 1406 EACH HE STILL HOLDS THOSE SHARES MR HUBER WHO CURRENTLY HOLDS 134156 SHARES HAS BEEN A REGULAR ACCUMULATOR OF COMPANY STOCK AND SAYS HE TYPICALLY EXERCISES STOCK OPTIONS AT THE END OF EACH YEAR FOR TAX PURPOSES INDEED SEC DATA SHOW HE EXERCISED OPTIONS TO ACQUIRE 44000 SHARES AT 1406 EACH IN DECEMBER 1992 AND CONTINUES TO HOLD THOSE SHARES THE BANK'S VICE CHAIRMAN SAID THAT IN NOVEMBER THERE WERE DISCUSSIONS WITH BANKAMERICA UNDER WAY BUT THAT NOTHING WAS CERTAIN HE SAID HOWEVER THAT HE WOULD HAVE BEEN RELUCTANT TO BUY STOCK IN THE OPEN MARKET AT THE TIMEBUT THERE WAS NOTHING WRONG WITH EXERCISING OPTIONS HE ALREADY OWNED MR ROMEO THE FORMER SEC ATTORNEY SAID THE EXERCISE OF OPTIONS DOES NOT PRESENT A POSSIBLE VIOLATION OF SEC GUIDELINES UNDER THE CIRCUMSTANCES THE OPTION EXERCISE IS NOT A PROBLEM BECAUSE THE COMPANY ITSELF IS THE OTHER PARTY TO THE OPTIONEXERCISE TRANSACTION HE EXPLAINED THE SEC'S REGULATIONS ARE TO DISCLOSE OR ABSTAIN' BUT YOU DON'T HAVE TO DISCLOSE IF YOU KNOW THE OTHER PARTY HAS THE INFORMATION AND THE OTHER PARTY WOULD BE DEEMED TO HAVE THAT INFORMATION BECAUSE THEY'RE THE ONES DOING THE PROPOSED TAKEOVER DEAL SEPARATELY A GROUP OF CONTINENTAL SHAREHOLDERS FILED A SUIT IN DELAWARE CHANCERY COURT IN WILMINGTON THAT SEEKS TO PUT THE COMPANY UP FOR BID TERMING THE BANKAMERICA TAKEOVER PRICE OF 19 BILLION AS GROSSLY INADEQUATE THE SUIT SEEKS TO ENJOIN CONTINENTAL'S DIRECTORS FROM USING ANY LOCKUP OR POISONPILLTYPE MANUEVERS TO PREVENT BIDS FROM OTHER PARTIES THE SUIT SEEKS CLASSACTION STATUS A SPOKESMAN FOR THE BANK SAID WE BELIEVE THE SUIT HAS NO MERIT WHATSOEVER AND WE INTEND TO ACTIVELY DEFEND AGAINST IT 9402020027 940202 BUSINESS & RACE BY LEON E WYNTER BLACK MANAGERS OFTEN SHRUG OFF NEGATIVE PERFORMANCE REVIEWS FROM WHITE SUPERVISORS A RECENT STUDY SHOWS BUT BY IGNORING SUCH FEEDBACK THEY MAY HELP FULFILL THEIR OWN EXPECTATIONS THAT THEY WILL BE TREATED BADLY BY WHITE MANAGERS SAYS HERDIE BAISDEN A PSYCHOLOGIST WHO CONDUCTED THE STUDY MR BAISDEN A VICE PRESIDENT WITH PERSONNEL DECISIONS IN ARLINGTON VA LOOKED AT HOW 500 BLACK AND 3600 WHITE MANAGERS RATED THEMSELVES AND HOW THEY WERE RATED BY THEIR SUPERVISORS THE BLACK MANAGERS TENDED TO GET LOWER GRADES THAN THEIR WHITE COUNTERPARTS AND ALTHOUGH ALL THE MANAGERS THOUGHT THEY DID BETTER THAN THEIR SUPERVISORS THOUGHT THEY DID THE PERCEPTION GAP WAS SIGNIFICANTLY HIGHER FOR BLACK MANAGERS MR BAISDEN WHO IS BLACK CONCLUDED THAT BLACK MANAGERS DISCOUNT SOME OF THE FEEDBACK THEY GET AND SAY CONSIDER THE SOURCE' TO PROTECT THEMSELVES IN WORKPLACES THEY CONSIDER TO BE HOSTILE EVEN POSITIVE FEEDBACK IS DISCOUNTED WE END UP WITH A VIEW OF OURSELVES THAT CLEARLY IS NOT SHARED BY THE BOSS WHICH INCREASES THE LEVEL OF CONFLICT MR BAISDEN SAYS WE STILL DON'T KNOW WHY THE WHITE MANAGERS ARE RATING THEM LOWER IN THE FIRST PLACE MR BAISDEN SAYS BUT INSTEAD OF CLOSING DOWN TO FEEDBACK BLACK MANAGERS SHOULD TRY THEIR BOSS'S BOSS OR PEERS OR SUBORDINATES AND SEE HOW THEIR VIEWS LINE UP HE SAYS WHITE MANAGERS HE ADDS SHOULD BE FRANK CONSISTENT AND SPECIFIC IN THEIR EVALUATIONS OF BLACK SUBORDINATES TO OVERCOME INHERENT MISTRUST WHILE A DEBATE ON MULTICULTURALISM IS ROILING THE PUBLIC RELATIONS PROFESSION EVERYONE SEEMS TO AGREE ON ONE THING THE PUBLIC RELATIONS SOCIETY OF AMERICA HASN'T DONE ENOUGH TO BRING MINORITIES INTO THE FIELD BLACKS AND HISPANICS HOLD ABOUT 6 AND 2 OF PUBLIC RELATIONS JOBS RESPECTIVELY THAT HASN'T CHANGED SINCE 1984 ACCORDING TO FEDERAL STATISTICS TOTAL INDUSTRY EMPLOYMENT HAS BEEN FLAT FOR A DECADE YOU GET 30 MEMBERS OF PRSA IN A ROOM AND THEY AGREE ON THE NEED FOR DIVERSITY BUT WHEN IT COMES TO THEIR HIRING PRACTICES WE HIT A WALL SAYS CHERYL PROCTER A MEMBER OF PRSA'S MULTICULTURAL COMMITTEE AS A RESULT SEPARATE BLACK HISPANIC AND ASIAN PROFESSIONAL GROUPS HAVE SPRUNG UP IN RECENT YEARS BECAUSE OUR LEADERS FELT EXCLUDED SAYS OCTAVIO NUIRY PRESIDENT OF THE HISPANIC PUBLIC RELATIONS ASSOCIATION IN AN IDEAL UNIVERSE I THINK WE SHOULD BE IN ONE GROUP BUT WE DON'T LIVE IN A PERFECT SOCIETY SAYS MR NUIRY SOME PUBLICRELATIONS VETERANS THINK THE MULTICULTURALISM PUSH ISN'T DOING THE PROFESSION A LOT OF GOOD INFLUENTIAL TRADENEWSLETTER PUBLISHER JACK O'DWYER SAYS THE AGENDA IS REALLY ABOUT SEPARATISM AND THAT ONLY MAKES THINGS HARDER WHEN THE GOAL SHOULD BE INTEGRATION RAY GAULKE PRSA'S NEW CHIEF EXECUTIVE SAYS MULTICULTURALISM HAS BEEN INEFFECTIVE SO FAR BECAUSE THE DEBATE FAILS TO ADDRESS THE BOTTOM LINE JOBS PRSA HASN'T SAID TO THE MEMBERSHIP THAT THIS IS ABOUT JOBS JOBS JOBS HE SAYS MR GAULKE ADDS THAT PRSA IS COMMITTED TO NURTURING THE MINORITY ASSOCIATIONS AND PLANS TO BRING THEM UNDER THE PRSA UMBRELLA EVENTUALLY THE MULTICULTURAL PRIMARY CARE MEDICAL GROUP IS BRINGING A NEW MEANING TO THE TERM MANAGED CARE THE SAN DIEGO GROUP AIMS TO CAPITALIZE ON THE MANAGEDCARE TREND TO BRING CULTURALLY APPROPRIATE CARE TO MEDICALLY UNDERSERVED ETHNIC COMMUNITIES DR RODNEY HOOD ORGANIZED MCPC A FEW YEARS AGO BECAUSE MINORITY DOCTORS WERE BEING FORCED TO CHOOSE BETWEEN JOINING MEDICAL GROUPS OUTSIDE THEIR COMMUNITIES OR STAYING BEHIND AND LOSING PATIENTS AS MORE ENROLLED IN HEALTHMAINTENANCE ORGANIZATIONS AND OTHER MANAGEDCARE PLANS DR HOOD'S GOAL IS TO PROVIDE CARE THAT IS SENSITIVE TO MCPC'S MOSTLY HISPANIC BLACK AND ASIANAMERICAN PATIENTS THE GROUP'S DOCTORS SPEAK THEIR PATIENTS' LANGUAGES AND KNOW THE SOCIAL AND SPIRITUAL PLACE CAREGIVERS OCCUPY AMONG SAN DIEGO'S EMERGING MAJORITY OF COLOR SOME OLDER BLACK PATIENTS FOR EXAMPLE ARE PUT OFF IF DOCTORS YOUNG ENOUGH TO BE THEIR CHILDREN CALL THEM BY THEIR FIRST NAME SAYS DR HOOD FOR REASONS ROOTED IN SLAVERY AND SEGREGATION MCPC RECENTLY AFFILIATED WITH THE UNIVERSITY OF CALIFORNIA SAN DIEGO HEALTHCARE NETWORK WHICH MANAGES HEALTH FACILITIES AND IS LOOKING TO BROADEN ITS MANAGEDCARE OPTIONS MCPC WILL PROVIDE PRIMARY CARE AT 24 SITES UNDER CONTRACT WITH INSURERS WE'RE POSITIONING OURSELVES TO GET A LARGER PIECE OF THE MANAGEMENT FINANCES TO ALLOW US TO STAY WHERE WE ARE SAYS DR HOOD HISPANICS ASIANS AND AFRICANAMERICANS WHO MAKE UP 34 OF SAN DIEGO COUNTY ARE THE FASTESTGROWING SEGMENT OF THAT MANAGEDCARE MARKET SAYS EDWARD MARTINEZ A CONSULTANT TO THE UCSD NETWORK MR MARTINEZ SAYS THE AFFILIATION WITH MCPC IS REALLY CRUCIAL TO THE UNIVERSITY'S GOAL OF SERVICING THE ENTIRE COMMUNITY AND BECOMING A MAJOR PLAYER IN MANAGED CARE PRODUCERDIRECTOR OLIVER STONE CONTINUES TO MINE ASIAN AND HISPANIC CULTURES FOR FEATURE FILMS HIS RECENT FILMS CENTERED ON CHINESEAMERICAN AND VIETNAMESE STORIES NOW MR STONE WILL DIRECT A FILM VERSION OF THE MUSICAL EVITA AFTER FINISHING THE STORY OF FORMER PANAMANIAN DICTATOR MANUEL NORIEGA THIS YEAR THAT FILM TENTATIVELY STARS AL PACINO WHO RECENTLY PORTRAYED A PUERTO RICAN GANGSTER AND ISN'T HISPANIC AFROLINK SOFTWARE LOS ANGELES A BLACKOWNED PRODUCER OF INTERACTIVE COMPUTER SOFTWARE ON AFRICAN AND AFRICANAMERICAN HISTORY HAS ADDED AN ISLAMIC CULTURE PROGRAM THE PROGRAM MIXES SOUND ANIMATION AND TEXT AND INCLUDES A DIRECTORY OF ISLAMIC TERMS 9402020026 940202 BUSINESS BRIEF MERRYGOROUND ENTERPRISES INC RETAILER RECEIVES APPROVAL FOR A DEBTOR CREDIT LINE MERRYGOROUND ENTERPRISES INC SAID IT RECEIVED APPROVAL FROM US BANKRUPTCY COURT IN BALTIMORE FOR 125 MILLION IN DEBTORINPOSSESSION FINANCING MERRYGOROUND SAID THE REVOLVING LINE OF CREDIT WILL BE FINANCED BY CIT GROUP NEW YORK THE JOPPA MD SPECIALTY RETAILER WHICH FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN EARLY JANUARY SAID IT HOPES TO FILE A REORGANIZATION PLAN WITHIN THE 120DAY EXCLUSIVITY PERIOD MERRYGOROUND ALSO DENIED PUBLISHED REPORTS THAT IT WOULD CLOSE 100 TO 200 STORES IN THE NEXT YEAR NO DETERMINATION HAS BEEN MADE BY MERRYGOROUND ENTERPRISES TO CLOSE ANY STORES OTHER THAN THE APPROXIMATELY 80 STORES INCLUDING APPROXIMATELY 50 CHESS KING STORES PREVIOUSLY ANNOUNCED THE COMPANY SAID IN ADDITION THE COMPANY SAID IT WOULD RETREAT FROM THE HIPHOP URBAN FASHIONS THAT FAILED TO GARNER APPEAL IN THE PAST 12 MONTHS CONTRIBUTING TO THE COMPANY'S RECENT FINANCIAL PROBLEMS INSTEAD THE COMPANY PLANS TO STOCK ITS STORES WITH MORE CONSERVATIVE STYLES 9402020025 940202 GLOBAL SEARCH CHEVRON IS PLUNGING INTO FOREIGN PROJECTS TO BUILD OIL RESERVES ONCESTODGY GIANT GAMBLES ON THE STEPPES OF ASIA AND IN WARTORN AFRICA THE PROBLEMS IN KAZAKHSTAN BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL SAN RAMON CALIF HUNCHED OVER AN ARRAY OF BRIGHTLY COLORED MAPS RICHARD MATZKE HEAD OF CHEVRON CORP'S INTERNATIONAL EXPLORATION UNIT PLOTS POTENTIAL PIPELINE ROUTES THAT ONE DAY COULD TRANSFORM THE COMPANY'S TENGIZ OIL PROJECT IN KAZAKHSTAN INTO A SMALLER VERSION OF SAUDI ARABIA THE PIPELINE IN THE FORMER SOVIET REPUBLIC COULD ALSO COMPLETE CHEVRON'S STRATEGIC TRANSFORMATION FROM CAUTIOUS DOMESTIC PLODDER INTO SUCCESSFUL GLOBAL RISKTAKER BUT AS IN MOST CORPORATE MAKEOVERS AMERICA'S THIRDLARGEST OIL AND GAS COMPANY IS BECOMING AWARE OF A WIDE AND POSSIBLY PERILOUS GAP 'TWIXT PLAN AND REALITY TAKING THE PIPELINE IN ONE DIRECTION WOULD ROUTE IT THROUGH THE TURF OF THE REGION'S MOST TREACHEROUS UNDERWORLD BOSSES ANOTHER PATH WOULD TAKE IT THROUGH POCKETS OF FIERCE ETHNIC FIGHTING AND MAYBE EVEN THROUGH IRAQ OR IRAN THE OBVIOUS SOLUTION TO HOOK INTO NEIGHBORING RUSSIA'S EXISTING PIPELINE SYSTEM MAY COST A CZAR'S RANSOM OR BE POLITICALLY IMPOSSIBLE SOMEWHERE THERE IS GOING TO BE A TOLL BOOTH MR MATZKE SAYS WITH A SIGH THERE IS ALWAYS A PRICE TO PAY SAN FRANCISCOBASED CHEVRON HAS DECIDED TO PAY THAT PRICE BUT MORE THAN OTHERS IN BIG OIL IT HAS HAD TO CHANGE ITS WAYS TO DO SO INTERNALLY THE ONCECOMPLACENT COMPANY IS MOVING TO INSTILL A MORE ENTREPRENEURIAL CULTURE WITH LESS CENTRAL CONTROL GLOBALLY IT IS DETERMINED TO GROW BY GAMBLING ON RISKY BUT POTENTIALLY HIGHRETURN MEGAPROJECTS FROM THE STEPPES OF CENTRAL ASIA TO WARRAVAGED WESTERN AFRICA ITS GOALS TO MORE THAN DOUBLE ITS WORLDWIDE RESERVES AND TO GAIN WALL STREET'S RESPECT WATCHING BIG PLAYING FIELDS OPENING UP ALL AROUND THE WORLD FINALLY PERSUADED CHEVRON IT COULDN'T AFFORD TO RELY ON THE VERY RESTRICTIVE SET OF OPPORTUNITIES HERE IN THE US SAYS DAVID O'REILLY VICE PRESIDENT OF STRATEGIC PLANNING THE TURNING POINT CAME THREE YEARS AGO WHEN TOP MANAGERS GASPED AT BUDGET REQUESTS LAID BEFORE THEM ANNUAL PROFIT WAS DIVING BELOW 1 BILLION WHILE DIVISIONAL EXECUTIVES BLITHELY CHURNED OUT WISH LISTS GEARED TO A COMPANY EARNING TWICE THAT MUCH EVER SINCE THEN CHEVRON HAS BEEN SHRINKING ITS DOMESTIC INVESTMENTS AND SLASHING OPERATING COSTS ESSENTIAL MOVES IN VIEW OF A GLOBAL OIL GLUT THAT HAS DEPRESSED PRICES TO A FIVEYEAR LOW IT HAS PUT MORE THAN 5 BILLION OF ASSETS ON THE BLOCK IN THE PAST FEW YEARS CHOPPED ITS PAYROLL MORE THAN 20 TO 42000 AND ELIMINATED MOST COMPANYOWNED GASOLINE STATIONS IN THE EAST ALTHOUGH CHEVRON REMAINS THE NO2 NATURALGAS PRODUCER AND LARGEST MARKETER OF PETROLEUM PRODUCTS IN THE US ITS NEW STRATEGY HAS SET ITS TRADITIONAL SPENDING PATTERNS ON THEIR HEAD CHEVRON OPERATES FAR FEWER DOMESTIC OIL AND GAS PROPERTIES THAN IT HAD JUST FIVE YEARS AGO THREE OUT OF FOUR EXPLORATION DOLLARS ARE GOING OVERSEAS ALMOST DOUBLE THE PRE1989 PERCENTAGE EVEN CHEVRON'S HISTORIC DOWNTOWN SAN FRANCISCO OFFICE BUILDING IS ON THE MARKET WHILE ALL BIG OIL IS GOING THROUGH CHANGE CHEVRON HAS HAD TO GO FURTHER FASTER TO BECOME COMPETITIVE CONTENT IN THE 1980S TO RELY ON FIELDS IN THE GULF OF MEXICO AND THE SOUTHWEST IT CONSISTENTLY HAD THE HIGHEST COST FOR PRODUCING A BARREL OF OIL IN THE US THE INDUSTRY VIEWED CHEVRON AS SLOW AND STODGY AFTER BUYING GULF OIL CO IN 1984 IT WAITED TOO LONG TO CUT OVERHEAD AND THEN WAS TOO TIMID IN ELIMINATING MARGINAL OPERATIONS AS THE ENERGY BUSINESS SANK UNTIL A FEW YEARS AGO TOP MANAGERS HAD TO APPROVE EVEN RELATIVELY PIDDLING 1 MILLION OUTLAYS NOW CHEVRON HAS REPORTED FIVE STRAIGHT QUARTERS OF OPERATING EARNINGS ABOVE 500 MILLION IN EARLY JANUARY IT GAVE EMPLOYEES 115 MILLION IN BONUSES AND TOOK OUT NEWSPAPER ADS TO TRUMPET ACHIEVING ITS GOAL OF PROVIDING THE GREATEST RETURN TO SHAREHOLDERS AMONG MAJOR US OIL CONCERNS BASED ON TOTAL DIVIDENDS AND STOCK APPRECIATION OVER THE PAST FIVE YEARS DIVIDENDS HAVE INCREASED SIX TIMES IN SIX YEARS AND THE STOCK IS UP ABOUT 25 FROM TWO YEARS AGO JUST DAYS AFTER THE BOARD PROPOSED A 2FOR1 STOCK SPLIT CHEVRON CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 9325 DOWN 125 CENTS ON THE DAY CHAIRMAN KENNETH DERR SEES EVEN BRIGHTER DAYS AHEAD EXCEPT FOR THE US HE SAYS EVERY COUNTRY IN THE WORLD IS DOING EVERYTHING POSSIBLE TO DEVELOP ITS OIL RESOURCES GROWTH OPPORTUNITIES FOR INTERNATIONAL OIL COMPANIES HAVE NEVER BEEN GREATER BUT CHEVRON FACES STIFF COMPETITION ABROAD EVERY MAJOR OIL COMPANY IS LOOKING THERE PACESETTERS SUCH AS EXXON CORP AND ROYAL DUTCH/SHELL GROUP HAVE GREATER FINANCIAL RESOURCES AND MORE DIVERSIFIED WORLDWIDE INTERESTS CHEVRON'S STRATEGIC SHIFT REFLECTS GEOLOGICAL REALITY AND A THIRST FOR CRUDE OIL WHEN CRITICS DEMAND TO KNOW WHY THE COMPANY HAS TURNED ITS BACK ON DOMESTIC EXPLORATION FOR MUCH RISKIER VENUES THE USUALLY AMIABLE MR DERR TURNS BITTER REELING OFF A LIST OF US WILDLIFE REFUGEES AND OFFSHORE AREAS THAT CAN'T BE DEVELOPED BECAUSE OF ENVIRONMENTAL OBSTACLES DID YOU EVER TRY TO DO BUSINESS IN SANTA BARBARA COUNTY HE SNAPS WE TOOK A BIGGER EXPLORATION AND PRODUCTION WRITEOFF THERE THAN WE TOOK ANYWHERE ELSE HAVING INVESTED 26 BILLION TO DEVELOP THE POINT ARGUELLO FIELD OFF THE COAST OF SANTA BARBARA CHEVRON AND ITS PARTNERS HAVE BEEN FIGHTING OPPOSITION FROM LOCAL POLITICIANS AND ENVIRONMENTAL GROUPS SINCE 1980 IN MANY WAYS CHEVRON'S FOCUS TODAY HARKS BACK TO EARLIER GLORY WHEN LUCK AND PERSEVERANCE EARNED IT THE FIRST WESTERN FOOTHOLD IN SAUDI ARABIA IN THE 1930S FOR A PITTANCE ITS GEOLOGISTS NEGOTIATED A HUGE DRILLING CONCESSION SIX CONSECUTIVE WELLS WERE UNSUCCESSFUL BUT AFTER FIVE YEARS OF WORK THE SEVENTH HOLE WAS A GUSHER THAT CHANGED THE MIDEAST FOREVER AND CATAPULTED CHEVRON INTO THE MAJOR LEAGUES OF INTERNATIONAL OIL PRODUCTION IT STILL BUYS ABOUT 13 OF ITS OIL FROM SAUDI FIELDS CHEVRON IS MAKING BOLD FORAYS TODAY EVEN THOUGH IT IS STILL HAUNTED BY A DISASTROUS NEARLY 1 BILLION INVESTMENT THAT IT HAD TO ABANDON IN SUDAN NEARLY A DECADE AGO AS THAT COUNTRY SLID INTO ANARCHY NEARLY 900 MILES OF PIPE AND THE EQUIPMENT TO LAY IT RUSTED AT STAGING AREAS WHILE GUERRILLAS KILLED SOME MEMBERS OF CHEVRON'S CONSTRUCTION CREW NOT A BARREL OF OIL WAS EVER PUMPED ONLY RECENTLY HAS THE COMPANY DELETED REFERENCES TO THE IGNOMINIOUS PROJECT FROM INTERNAL BRIEFING PAPERS WE AREN'T GOING TO HAVE ANY MORE SUDANS MR MATZKE VOWS NOTING THAT NO COUNTRY ACCOUNTS FOR MORE THAN 25 OF THE COMPANY'S ANNUAL OVERSEAS INVESTMENT YET WITH SO MUCH AT STAKE CHEVRON CAN'T ABANDON PROJECTS BECAUSE OF POLITICAL UNCERTAINTIES TO KEEP PRODUCTION GOING IN NIGERIA WHICH HAS HAD THREE GOVERNMENTS IN SEVEN MONTHS AND AN ELECTED PRESIDENT WHO HASN'T TAKEN OFFICE BECAUSE OF CIVIL STRIFE CHEVRON WILL HAVE TO SPEND A QUARTER OF A BILLION DOLLARS A YEAR AS FAR INTO THE FUTURE AS WE CAN SEE MR MATZKE SAYS IN ANGOLA THREE MORTAR SHELLS EXPLODED INSIDE THE COMPANY'S NORTHERN COMPLEX A FEW WEEKS AGO INJURING A WORKER AND FORCING AN EVACUATION UNTIL GOVERNMENT PARATROOPERS CHASED AWAY THE ATTACKERS EARLIER THE COMPANY'S WORK FORCE FOR OFFSHORE WELLS IN ZAIRE HAD BEEN RELOCATED TO THE ANGOLA SITE AFTER A SHOOTING SPREE SO FAR PRODUCTION IN BOTH COUNTRIES IS ON SCHEDULE AND CHEVRON SAYS WORKING WITH VARIOUS FACTIONS SHOULD KEEP THE OIL FLOWING DESPITE UNREST IN AFRICA AND ELSEWHERE CHEVRON'S EXECUTIVES PREDICT A NEARLY 30 JUMP IN ITS FOREIGN PRODUCTION FROM CURRENT LEVELS BY THE LATE 1990S THE COMPANY IS GIVING ITS ONTHESCENE PEOPLE MORE AUTHORITY WHEN SECRETARY OF STATE WARREN CHRISTOPHER MADE A BRIEF STOP IN THE KAZAKH CAPITAL CHEVRON'S LOCAL MANAGER MORLEY DUPRE GAVE HIM A LONG BRIEFING URGING MORE US DIPLOMATIC PRESSURE TO GAIN RUSSIAN COOPERATION MANAGING DIRECTORS IN EACH COUNTRY CULTIVATE US DIPLOMATS AND LOCAL OFFICIALS CHEVRON EXECUTIVES ARE CRISSCROSSING THE GLOBE PEDDLING A WIDE RANGE OF TECHNOLOGY DRUMMING UP CONSULTING CONTRACTS AND TRYING TO LAUNCH SMALLSCALE VENTURES IN THE HOPE OF EVENTUALLY GETTING LARGER ONES IN ANGOLA THEY GIVE THE CASHSTARVED GOVERNMENT ADVICE ON LINING UP INTERNATIONAL FINANCING IN RUSSIA THEY HELP REFINERIES TURN OUT HIGHERGRADE LUBRICANTS AND SUGGEST WAYS TO SET UP A NETWORK OF SERVICE STATIONS IF YOU DON'T START TALKING TO PEOPLE AND DO A LITTLE BIT OF BUSINESS MR DERR SAYS YOU'RE PROBABLY NEVER GOING TO DO THE BIGGER BUSINESS SOMETIMES COMMON SENSE DICTATES A LOWER PROFILE WHEN CHINESE OFFICIALS COMPLAINED TO CHEVRON AND ITS PARTNERS THAT TOO MANY HIGHLY PAID WESTERN ENGINEERS WERE MANAGING AN OFFSHORE PROJECT ONLY MR MATZKE'S CREW GOT THE MESSAGE THE OTHERS BALKED AT GIVING UP THE IMAGE THAT GOES WITH A PERMANENT PRESENCE CHEVRON DECIDING THAT EARNING CHINA'S GOODWILL WAS MORE IMPORTANT PULLED WESTERN EMPLOYEES OUT AND IT HAS GOTTEN A STEADY STREAM OF SMALL FAVORS AND PROMISES OF FUTURE ASSISTANCE FROM THE CHINESE BUT WELLTHOUGHTOUT STRATEGIES SOMETIMES COME UP AGAINST THE HARSH REALITIES OF PRODUCING CRUDE ABROAD AT TENGIZ WHICH IS OPERATED AS A 5050 JOINT VENTURE BY CHEVRON AND THE KAZAKH GOVERNMENT TEMPERATURES CAN TOP 130 DEGREES IN SUMMER AND PLUNGE TO 30 DEGREES BELOW IN THE WINTER THE MUD IS DEEP ENOUGH TO SUCK THE BOOTS OFF UNSUSPECTING VISITORS RAILROAD CARS JAMMED WITH GIANT ELECTRIC GENERATORS ARE THE ONLY DEPENDABLE SOURCE OF POWER EVEN IF EVERYTHING WORKS PERFECTLY IN SUCH A HOSTILE ENVIRONMENT IT CAN TAKE A DECADE TO START EARNING PROFITS MEANWHILE CONTRACTS AND CURRENCIES CAN CHANGE DAILY AT THE WHIM OF OFFICIALDOM THE GAP BETWEEN LAW AND REALITY IS HUGE SAYS GEORGE MISTULOFF A FORMER CONSULTANT FOR US COMPANIES IN KAZAKHSTAN AND NEARBY AREAS YOUR GUARANTEES QUITE FRANKLY ARE ONLY AS GOOD AS YOUR PERSONAL RELATIONSHIP WITH THE PEOPLE WHO HAPPEN TO BE IN CHARGE AT THE MOMENT ALTHOUGH CHEVRON SAYS ITS SPENDING IN THE BARREN KAZAKH COUNTRYSIDE IS PROCEEDING SLOWLY IT HAS ALREADY LAID OUT 300 MILLION AND BEEN TIED UP FOR SEVEN YEARS IN NEGOTIATIONS TO GAIN ACCESS TO A PRIZE THAT DWARFS ALASKA'S RENOWNED PRUDHOE BAY THE COMPANY HAS AGREED TO FINANCE EVERYTHING FROM SCHOOLS AND CLINICS TO STATEOFTHEART PROCESSING PLANTS BUT THE FUNDING SPIGOT WON'T BE OPENED FURTHER WITHOUT REAL PROGRESS IN MARKETING OIL WE REALLY CAN'T CONTROL MUCH ELSE IN THESE HIGHRISK DEALS MR MATZKE ACKNOWLEDGES SO IF WE LOSE TENGIZ WE DON'T GO INTO THE TANK IF WE SUCCEED WE'RE IN HEAVEN HEAVEN MUST WAIT NEARLY ALL THE EXISTING TENGIZ WELLS THAT CHEVRON INHERITED UNDER ITS CONTRACT HAD TO BE PLUGGED OR REWORKED TO MAKE SURE THEY WOULDN'T EXPLODE OUTPUT IS A MERE 30000 BARRELS A DAY LESS THAN A QUARTER OF WHAT THE COMPANY EXPECTED TO SHIP BY MID1994 RUSSIA WHICH CURRENTLY SWAPS TENGIZ OIL FOR CRUDE THAT CHEVRON CAN EXPORT FROM A BLACK SEA PORT REFUSES TO ACCEPT ADDITIONAL BARRELS FROM THE LANDLOCKED FIELD UNLESS CHEVRON SPENDS SUBSTANTIAL SUMS NOT SPECIFIED IN THE CONTRACT TO UPGRADE PUMPING STATIONS AND OTHER FACILITIES THE KAZAKHS THEMSELVES HAVE OCCASIONALLY HELD DOWN TENGIZ PRODUCTION FOR INTERNAL POLITICAL REASONS MR DERR CONCEDES THAT CHEVRON IS GOING THROUGH HOLY HELL TO KEEP THE PROJECT ON TRACK BUT ALMOST IN THE SAME BREATH HE STRESSES THAT CHEVRON MUST FIND A WAY AROUND THE OBSTACLES IT'S JUST ABSOLUTELY FANTASTIC THAT WE ARE IN BUSINESS IN KAZAKHSTAN AHEAD OF COMPETITORS HE SAYS MARVELING THAT CHEVRON HAS COME THIS FAR WE'RE SELLING MORE OIL FROM THE FORMER SOVIET UNION THAN ANYBODY ELSE 9402020024 940202 CIVILRIGHTS NOMINEE QUOTA CLONE BY CLINT BOLICK BY NAMING BOSTON LAWYER DEVAL PATRICK THE NATION'S TOP CIVILRIGHTSLAW ENFORCEMENT OFFICIAL BILL CLINTON CONFIRMED A FEAR HARBORED BY MANY WHO HOPED HE WOULD LIVE UP TO HIS NEW DEMOCRAT BILLING THAT THE PRESIDENT HAS WEDDED HIMSELF TO A HARDLEFT CIVILRIGHTS AGENDA THOUGH CHASTENED BY PUBLIC REPUDIATION OF THE RADICAL VIEWS ESPOUSED BY LANI GUINIER HIS FIRST NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS MR CLINTON HAS DIPPED INTO THE SAME PHILOSOPHICAL WELL FOR ALL HIS OTHER NOMINEES FOR KEY CIVILRIGHTS POSITIONS HE NEARLY DIVERGED FROM THIS PATH BY CHOOSING JOHN PAYTON FOR THE TOP POST BUT RETREATED WHEN THE CONGRESSIONAL BLACK CAUCUS QUESTIONED MR PAYTON'S IDEOLOGICAL BONA FIDES IN MR PATRICK MR CLINTON HAS SELECTED A STEALTH GUINIER A SIMILAR ACTIVIST PEDIGREE BUT WITHOUT DAMAGING LAWREVIEW ARTICLES DURING THE EARLY 1980S BOTH MR PATRICK AND MS GUINIER LITIGATED WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND LDF WHICH HAS RELENTLESSLY PRESSED FOR RACE QUOTAS BUSING AND MINORITY CONTRACT SETASIDES MR PATRICK NOW CHAIRS THE GROUP'S NEW ENGLAND STEERING COMMITTEE THOUGH MS GUINIER FOCUSED ON VOTINGRIGHTS CASES WHILE MR PATRICK ATTACKED THE DEATH PENALTY AND REPRESENTED CRIMINAL DEFENDANTS A CONSISTENT THREAD RUNS THROUGH THEIR EFFORTS AND THE ENTIRE LDF PROGRAM THE BELIEF THAT UNCONSCIOUS RACISM PERMEATES AMERICAN SOCIETY AND CAN BE REMOVED ONLY THROUGH RACECONSCIOUS SOCIAL ENGINEERING ONE PATRICK CASE IN PARTICULAR EXEMPLIFIES THIS IN MCCLESKY V KEMP A 1987 SUPREME COURT CASE MR PATRICK REPRESENTED WARREN MCCLESKY A BLACK MAN ACCUSED OF MURDER FOR ALLEGEDLY SHOOTING A POLICEMAN IN THE FACE DURING THE ROBBERY OF A FURNITURE STORE IN FULTON COUNTY GA A MIXEDRACE JURY SENTENCED MR MCCLESKY TO DEATH THE MCCLESKY CASE WAS PART OF LDF'S EFFORT TO ELIMINATE CAPITAL PUNISHMENT A GOAL ITS 198788 ANNUAL REPORT DESCRIBED AS FOR MORE THAN TWO DECADES LDF'S PRIORITY IN THE AREA OF CRIMINAL JUSTICE BUT LDF PRESENTED NO EVIDENCE THAT DISCRIMINATION INFECTED MR MCCLESKY'S TRIAL OR SENTENCE IN ANY WAY RATHER IT RELIED SOLELY ON STATISTICAL STUDIES SHOWING THAT MURDERERS OF WHITE VICTIMS WERE MORE LIKELY TO RECEIVE CAPITAL PUNISHMENT THAN MURDERERS WHOSE VICTIMS WERE BLACK THE STATISTICS ALSO SHOWED CURIOUSLY THAT A HIGHER PERCENTAGE OF WHITES THAN BLACKS WERE GIVEN CAPITAL PUNISHMENT WHEN THE VICTIMS WERE BLACK THIS STUDY WAS ENOUGH MR PATRICK ASSERTED TO STRIKE DOWN THE DEATH SENTENCE AS A VIOLATION OF THE EIGHTH AMENDMENT'S BAN ON CRUEL AND UNUSUAL PUNISHMENT AND THE 14TH AMENDMENT'S EQUALPROTECTION GUARANTEE MR PATRICK'S ARGUMENT WOULD HAVE FORCED THE SUPREME COURT TO ABANDON ITS RULE THAT VIOLATIONS OF EQUAL PROTECTION REQUIRE PROOF OF DISCRIMINATORY INTENT NOT JUST UNEQUAL OUTCOMES THE COURT DECLINED GIVEN THE MYRIAD PROTECTIONS ATTENDING THE DEATH PENALTY AND ABSENT EVIDENCE THAT DISCRIMINATION AFFECTED A PARTICULAR SENTENCE THE COURT RULED THAT STATISTICS ALONE WERE NOT ENOUGH TO CONDEMN THE WHOLE SYSTEM AS DISCRIMINATORY REGARDLESS OF ONE'S OPINION ON CAPITAL PUNISHMENT GENERALLY MR PATRICK'S ARGUMENT IS DISTURBING ON MULTIPLE LEVELS GRAFTING AN EQUALITYOFRESULTS STANDARD ONTO THE 14TH AMENDMENT WOULD RENDER UNCONSTITUTIONAL ANY GOVERNMENT POLICY THAT AFFECTS RACIAL GROUPS DIFFERENTLY LEADING INEVITABLY TO THE TYPE OF RACIAL GERRYMANDERING THAT CHARACTERIZES THE VOTING RIGHTS ACT WHICH USES A RESULTS STANDARD PRESIDENT CLINTON REJECTED THIS APPROACH DURING HIS CAMPAIGN WHEN HE ENDORSED EQUAL OPPORTUNITY RATHER THAN EQUALITY OF RESULTS AS HIS CIVILRIGHTS TOUCHSTONE THE PATRICK NOMINATION ALSO REFLECTS A TROUBLING TENDENCY BY MR CLINTON TO APPOINT JUDGES AND LAW ENFORCEMENT OFFICIALS WHO EXALT SOCIOLOGY AND PSYCHOLOGY OVER LAW LIKE MS GUINIER'S CONTENTION THAT UNCONSCIOUS RACISM PRODUCES UNEQUAL ELECTORAL RESULTS MR PATRICK'S ARGUMENT IN MCCLESKY RESTS ON THE PREMISE THAT FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES THIS PREMISE ANIMATED LDF'S LITIGATION AGENDA DURING MR PATRICK'S TENURE IN WHICH IT SUCCESSFULLY SOUGHT MASSIVE JUDICIALLY IMPOSED TAX INCREASES TO FUND A GOLDPLATED DESEGREGATION PLAN IN KANSAS CITY MO ARGUED IN FAVOR OF RACIAL QUOTAS FOR PUBLIC EMPLOYEES IN THE DISTRICT OF COLUMBIA NEW ORLEANS AND ELSEWHERE DEFENDED MINORITY CONTRACT SETASIDES AND PRESSED FOR CONTINUATION OF FORCED BUSING DECADES AFTER SEGREGATION HAD CEASED THOUGH MR CLINTON PROFESSED HE WOULDN'T HAVE NOMINATED LANI GUINIER IF HE HAD KNOWN HER VIEWS MR PATRICK'S IS THE LATEST IN AN UNBROKEN LINE OF APPOINTMENTS FROM THE RANKS OF THE SAME LIBERAL CIVILRIGHTS ESTABLISHMENT THAT PRODUCED MS GUINIER FOR HEAD OF THE US COMMISSION ON CIVIL RIGHTS MR CLINTON ELEVATED MARY FRANCES BERRY WHO IN 1985 OPINED THAT CIVILRIGHTS LAWS WERE NOT PASSED TO GIVE CIVIL RIGHTS TO ALL AMERICANS BUT ONLY TO DISFAVORED GROUPS INCLUDING BLACKS HISPANICS AND WOMEN MS BERRY IS SO STRIDENT THAT HER APPOINTMENT VIRTUALLY ENSURES THIS MORIBUND AGENCY CONTINUED IRRELEVANCY MEANWHILE NORMA CANTU ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE EDUCATION DEPARTMENT LITIGATED BUSING CASES FOR THE MEXICANAMERICAN LEGAL DEFENSE AND EDUCATION FUND AND SHIRLEY WILCHER WHO MR CLINTON TAPPED TO HEAD THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS AT THE LABOR DEPARTMENT TOILED IN THE EARLY '80S FOR THE WOMEN'S LEGAL DEFENSE FUND MS CANTU HAS ALREADY TAKEN STEPS TO REVERSE PREVIOUS POLICIES RESTRICTING RACIAL CONSIDERATIONS IN COLLEGE SCHOLARSHIPS SINCE MR PATRICK HAS NO PUBLISHED WRITINGS THE SENATE JUDICIARY COMMITTEE SHOULD CLOSELY QUESTION HIS POSITIONS ON KEY CIVILRIGHTS ISSUES FOR INSTANCE DOES MR PATRICK SUPPORT KEY SUPREME COURT PRECEDENTS THAT 1 REQUIRE A SHOWING OF DISCRIMINATORY INTENT TO ESTABLISH CONSTITUTIONAL VIOLATIONS 2 LIMIT RACECONSCIOUS REMEDIES TO EXTREME CASES OF IDENTIFIED PAST DISCRIMINATION THAT CANNOT BE REDRESSED IN ANY OTHER MANNER AND 3 LET SCHOOL DISTRICTS FREE THEMSELVES FROM BUSING ORDERS AND RETURN TO LOCAL CONTROL AFTER DESEGREGATION ORDERS HAVE BEEN FULFILLED LDF FOR WHICH MR PATRICK SERVED AS AN ATTORNEY AND OF WHICH HE IS NOW A DIRECTOR TOOK THE OPPOSITE POSITION IN ALL THESE CASES EITHER MR PATRICK DOESN'T SHARE LDF'S PHILOSOPHY WHICH WOULD SEEM STRANGE OR HIS VIEWS ARE AT ODDS WITH THE MODERATE STANCE MR CLINTON TOOK DURING THE CAMPAIGN IN EITHER CASE A BIGGER QUESTION PERSISTS WHY DOES MR CLINTON RETURN TO THE SAME IDEOLOGICAL RETREADS FOR HIS CIVILRIGHTS NOMINATIONS IN THE NEW YORK TIMES EARLIER THIS WEEK COLUMNIST ANTHONY LEWIS ATTACKS ME AND THIS NEWSPAPER ARGUING THAT MS GUINIER WAS MISCHARACTERIZED IN THESE PAGES AS A QUOTA QUEEN THE LARGER ISSUE THOUGH IS NOT ONE SIMPLY OF QUOTAS ALTHOUGH I WAS CORRECT BUT THE PRESIDENT'S HABIT OF CHOOSING NOMINEES WHO VIEW THE WORLD THROUGH A RACIAL PRISM THIS TIME THE PRESIDENT COULD HAVE STRUCK A POSITIVE COURSE BY SELECTING LIBERALS WHO HAVE WRITTEN THOUGHTFULLY ABOUT THESE ISSUES SUCH AS STEPHEN CARTER OF YALE OR RANDALL KENNEDY OF HARVARD BUT MR CLINTON UNFAILINGLY TAKES HIS CUES FROM A CIVILRIGHTS ESTABLISHMENT THAT FOR 25 YEARS HAS HELD SWAY INSIDE THE WASHINGTON BELTWAY EVEN AS ITS INFLUENCE IN THE REAL WORLD HAS RAPIDLY DIMINISHED AS GROUPS LIKE LDF HAVE MOVED LEFT THEY'VE DISTANCED THEMSELVES FROM THEIR PURPORTED CONSTITUENTS WHICH SURVEYS OF MAINSTREAM BLACK AMERICANS DEMONSTRATE CONSISTENTLY IF MR CLINTON PERSISTS IN LOOKING LEFT FOR CIVILRIGHTS SOLUTIONS HE'LL KEEP HIS PARTY SHACKLED TO FAILED RACIALLY DIVISIVE POLICIES BUT MORE IMPORTANT HE WILL HAVE MISSED A GOLDEN OPPORTUNITY TO HEAL OUR NATION'S RACIAL WOUNDS MR BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON 9402020023 940202 ECONOMY UNEMPLOYMENT DATA WILL BE ADJUSTED FOR THE 1990 CENSUS WASHINGTON THE GOVERNMENT'S JANUARY EMPLOYMENT REPORT WHICH WILL BE RELEASED FRIDAY WILL REFLECT AN ADJUSTMENT FOR THE 1990 CENSUS UNDERCOUNT OF THE US POPULATION BUREAU OF LABOR STATISTICS OFFICIALS SAID THE CHANGE IS LIKELY TO BUMP THE UNEMPLOYMENT RATE UP 01 PERCENTAGE POINT FOR THE WHOLE YEAR THE ONETIME ADJUSTMENT IS SEPARATE FROM PREVIOUSLY ANNOUNCED CHANGES THAT WILL TAKE EFFECT WITH THE JANUARY REPORT THOSE CHANGES WHICH RESULT FROM A NEW QUESTIONNAIRE AND THE USE OF COMPUTERS TO RECORD SURVEY RESPONDENTS ARE EXPECTED TO KNOCK THE UNEMPLOYMENT RATE UP 05 PERCENTAGE POINT OVER TIME THE UNEMPLOYMENT RATE IN DECEMBER WAS 64 ADJUSTING FOR THE CENSUS UNDERCOUNT WILL BOOST THE ESTIMATED SIZE OF THE LABOR FORCE BY ROUGHLY 11 MILLION PEOPLE IT WILL INCREASE THE NUMBER OF EMPLOYED BY ABOUT 934000 AND SWELL THE RANKS OF UNEMPLOYED BY ABOUT 200000 SAID THOMAS PLEWES ASSOCIATE BLS COMMISSIONER THE 1990 CENSUS FAILED TO COUNT MANY INNERCITY DWELLERS PARTICULARLY HISPANICS AND BLACKS MR PLEWES SAID THE UNDERCOUNT OF HISPANICS IS THE MAIN REASON THE UNEMPLOYMENT RATE WILL RISE BY 01 PERCENTAGE POINT HISPANICS ARE A FASTGROWING SEGMENT OF THE POPULATION AND UNEMPLOYMENT IS HIGH AMONG THAT GROUP IN DECEMBER IT STOOD AT 105 TO FACILITATE HISTORICAL COMPARISONS THE BUREAU WILL PROVIDE UNEMPLOYMENT FIGURES FOR DECEMBER AND JANUARY USING BOTH THE OLD AND NEW METHODS THE BLS ALSO SAID THAT WHEN THE NEW VERSION OF ITS CURRENT POPULATION SURVEY IS RELEASED THIS WEEK IT NO LONGER WILL CONTAIN SEPARATE EMPLOYMENT DATA ON VIETNAM VETERANS THE BUREAU SAID IT WILL CONTINUE TO KEEP TRACK OF THE DATA AND PEOPLE WILL BE ABLE TO CALL IN FOR THE INFORMATION 9402020022 940202 WHO'S NEWS FEDERATED STORES TAPS LUNDGREN FOR POSTS IN MERCHANDISING UNIT CINCINNATI FEDERATED DEPARTMENT STORES INC NAMED TERRY J LUNDGREN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS MERCHANDISING DIVISION THE DEPARTMENTSTORE CHAIN'S NO 2 MERCHANDISING POSITION MR LUNDGREN 41 YEARS OLD HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS STORES IN DALLAS A UNIT OF NEIMAN MARCUS GROUP INC CHESTNUT HILL MASS HE WILL TAKE OVER FEDERATED'S NEW YORKBASED MERCHANDISING OPERATION IN EARLY APRIL AFTER HIS CONTRACT WITH NEIMAN MARCUS EXPIRES HE'LL REPORT TO ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE AND ITS TOP MERCHANT FOR FEDERATED FEDERATED MERCHANDISING IS A CRUCIAL UNIT THAT COORDINATES THE BUYING FROM DESIGNERS AND MANUFACTURERS AND DEVELOPS ITS OWN PRIVATELABEL MERCHANDISE OVERSEEING 240 MERCHANDISING STAFFERS MR LUNDGREN WILL DIRECT FEDERATED'S CENTRALIZED TEAM BUYING IN PICKING MERCHANDISE FOR FEDERATED'S 218 DEPARTMENT STORES THAT OPERATE UNDER THE NAMES ABRAHAM & STRAUS BLOOMINGDALE'S AND BURDINES AMONG OTHERS IN 26 STATES HE FILLS A POST LEFT OPEN SINCE LAST YEAR WHEN ROGER N FARAH LEFT TO BECOME HEAD MERCHANT AT RH MACY & CO FEDERATED'S RIVAL AND THE COMPANY WITH WHICH FEDERATED HAS SAID IT WANTS TO MERGE MR LUNDGREN JOINED NEIMAN MARCUS IN 1988 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS STORES IN 1990 AND LAST YEAR ADDED THE TITLE OF CHAIRMAN AND RETAINED THE TITLE OF CHIEF EXECUTIVE THE MOVE LEAVES NEIMAN MARCUS SEARCHING FOR SOMEONE TO SUSTAIN THE IMPROVING IMAGE OF THE 27STORE UPSCALE SPECIALTY RETAILING CHAIN ROBERT J TARR JR PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS GROUP SAID A SEARCH HAS BEGUN FOR A SUCCESSOR 9402020020 940202 WHO'S NEWS GRANCARE INC GRANCARE INC CULVER CITY CALIF GENE E BURLESON 53YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS ROY E CHRISTENSEN 60 WHO RESIGNED GRANCARE CURRENTLY OPERATES 80 LONGTERM HEALTHCARE FACILITIES 9402020019 940202 BUSINESS BRIEF MULTICARE COS CONCERN TO PAY 278 MILLION FOR PROVIDENCE HEALTH CARE NURSINGHOME OPERATOR MULTICARE COS HACKENSACK NJ SAID IT AGREED TO ACQUIRE PROVIDENCE HEALTH CARE INC A BEREA OHIO PROVIDER OF LONGTERM NURSING CARE FOR 278 MILLION MULTICARE SAID IT WILL PAY 750 A SHARE FOR PROVIDENCE'S 37 MILLION SHARES OUTSTANDING WITH OTHER COSTS SUCH AS SEVERANCE AND TRANSACTION EXPENSES ARE ADDED MULTICARE SAID THE TOTAL TRANSACTION COST WILL BE CLOSER TO 30 MILLION NEWS OF THE DEAL HELPED PROPEL PROVIDENCE'S SHARES UP 1625 OR 28 TO 7375 ON HEAVY VOLUME IN THE NASDAQ SMALLCAP MARKET MULTICARE EDGED UP 125 CENTS TO 18875 IN LATE NASDAQ TRADING THE PACT COMES NEARLY SIX WEEKS AFTER PROVIDENCE AGREED TO PUT ITSELF UP FOR SALE AS PART OF AN AGREEMENT WITH A DISSIDENT INVESTOR GROUP COMMONWEALTH ASSOCIATES OF NEW YORK MULTICARE PRESIDENT AND COCHIEF EXECUTIVE DANIEL STRAUS SAID THE ACQUISITION WILL STRENGTHEN MIDWESTERN OPERATIONS AND EXPAND FACILITIES TO 52 FROM 36 9402020018 940202 TEXAS JOURNAL COTTON FARMERS CULTIVATE GREEN ACRES BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS COTTON IS GOING GREEN BUOYED BY CONSUMER DEMAND FOR CHEMICALFREE PRODUCTS THE STATE'S COTTON FARMERS LAST YEAR MORE THAN TRIPLED THE NUMBER OF ACRES PLANTED WITH ORGANIC AND PESTICIDEFREE COTTON THE SURGE HAS MEANT NEW BUSINESS FOR TEXAS COTTON MILLS AND CAUGHT THE ATTENTION OF BUYERS IN EUROPE AND JAPAN AND NOW SOME APPAREL MANUFACTURERS AND EXPORT COMPANIES ARE OPENING OFFICES IN TEXAS TO BE CLOSER TO THE SUPPLY WE ACTUALLY TURNED PEOPLE DOWN LAST YEAR BECAUSE WE DIDN'T HAVE ENOUGH COTTON SAYS LA RHEA PEPPER A MEMBER OF THE TEXAS ORGANIC COTTON MARKETING COOPERATIVE IN LUBBOCK WHO FARMS ABOUT 700 ACRES OF ORGANIC AND SOCALLED TRANSITIONAL ORGANIC COTTON IT'S ALMOST LIKE THE MARKET IS JUST EXPLODING MS PEPPER SAYS I'VE HAD PEOPLE WHO WERE PLACING 10000POUND ORDERS IN THE PAST AND I'M DOING 80000POUND ORDERS FOR THEM NOW DESPITE ORGANIC COTTON'S RAPID GROWTH IT REPRESENTS JUST A FRACTION OF THE STATE'S COTTON INDUSTRY IN 1993 TEXAS COTTON FARMERS PLANTED 15000 ACRES OF ORGANIC OR TRANSITIONALORGANIC COTTON STATE OFFICIALS DON'T CERTIFY COTTON AS TRULY ORGANIC UNTIL IT HAS BEEN PESTICIDE AND CHEMICALFREE FOR THREE YEARS THAT'S A BIG RISE FROM 500 ACRES IN 1991 BUT IT PALES NEXT TO THE MORE THAN FIVE MILLION ACRES PLANTED LAST YEAR BY THE STATE'S TRADITIONALCOTTON FARMERS TEXAS IS THE NATION'S NO 1 PRODUCER OF BOTH TRADITIONAL AND ORGANIC COTTON SAYS THE NATIONAL COTTON COUNCIL IN MEMPHIS ORGANIC COTTON IS STILL CONSIDERED HIGHRISK BY MANY FARMERS THEY VIEW THE DEMAND FOR IT AS A FAD DESTINED TO GO THE WAY OF DISCO AND PET ROCKS IN ADDITION ORGANIC COTTON IS MORE LABORINTENSIVE AND SO IT CAN BE MORE EXPENSIVE TO PRODUCE THOUGH THE FIBERS FROM ORGANIC AND CONVENTIONAL COTTON PLANTS ARE THE SAME RESEARCHERS ARE HAVING PROBLEMS FINDING NATURAL SUBSTITUTES FOR THE MANMADE CHEMICALS USED TO SPIN WEAVE AND DYE CONVENTIONAL COTTONCHEMICALS THAT WOULD SHRINK THE APPEAL OF ORGANIC COTTON NEVERTHELESS MANY APPAREL MAKERS AND EXPORTERS ARE SOLD ON THE TEXAS ORGANIC FIBER GLENN STINEBAUGH PRESIDENT OF JONATHAN DAVID APPAREL WHICH SELLS CLOTHING UNDER THE TRADEMARK ENVIROGANICS IS NEGOTIATING TO MOVE MOST OF HIS COMPANY'S OPERATIONS TO DALLAS FROM DOWNEY CALIF TO BE CLOSER TO THE ORGANIC COTTON SUPPLY THOUGH CALIFORNIA IS NO 2 IN PRODUCTION OF ORGANIC COTTON MR STINEBAUGH SAYS HE WILL BUY ONLY FROM TEXAS THE REASON HE SAYS IS THE STATE'S STRINGENT CERTIFICATION STANDARDS WHICH CREATE A PAPER TRAIL BACK TO THE FARMER SHOWING THE COTTON WAS GROWN ORGANICALLY TEXAS HAS MORE THAN THE CERTIFICATION PROGRAM ON ITS SIDE THE STATE'S WEATHER PARTICULARLY IN THE HIGH PLAINS NEAR LUBBOCK GIVES FARMERS HERE AN EDGE OVER THOSE IN OTHER PARTS OF THE COUNTRY LOW RAINFALL AIDS IN PEST CONTROL FOR WHICH ORGANIC FARMERS ALSO USE BENEFICIAL INSECTS SUCH AS LADYBUGS AND LACEWINGS AND A RELIABLE NATURAL FREEZE IN LATE FALL MEANS THEY DON'T HAVE TO USE HERBICIDES TO KILL THE PLANTS FOR HARVEST BUT WHILE ORGANICCOTTON FARMERS DON'T USE EXPENSIVE CHEMICALS FERTILIZERS AND PESTICIDES THE CROP CAN BE MORE EXPENSIVE THAN TRADITIONAL COTTON WEED CONTROL FOR EXAMPLE MEANS PULLING WEEDS BY HAND FARMERS SAY THAT COSTS 20 TO 80 AN ACRE VS ABOUT 7 AN ACRE FOR SPRAYING ORGANIC FARMING CALLS FOR NATURAL FERTILIZERS LIKE COMPOST AND MANURE BUT WITHOUT CHEMICAL FERTILIZERS THE LAND REQUIRES MORE PREPARATION AND MOST FARMERS LEAVE AT LEAST ONETHIRD OF THEIR ORGANIC FARMLAND IDLE FOR A SEASON TO LET IT REJUVENATE BUT ORGANIC FARMERS EARN MORE FOR THEIR CROP THIS YEAR CONVENTIONAL COTTON HAS SOLD FOR ABOUT 62 CENTS A POUND WHILE ORGANIC COTTON HAS FETCHED UP TO 135 ONE OF THE BIGGEST PROBLEMS FACING ORGANIC FARMERS IS A LACK OF MARKETING INFRASTRUCTURE FOR THE PRODUCT AS SOON AS TRADITIONAL FARMERS HARVEST THEIR CROP THEY SELL IT TO BROKERS WHO THEN RESELL THE PRODUCT TO MILLS AND OTHER BUYERS BUT ORGANIC FARMERS DON'T HAVE A STRONG BROKER NETWORK OFTEN THEY MUST FIND BUYERS PIECEMEAL OVER MANY MONTHS THAT'S A BIG CHANGE FOR THE AVERAGE PRODUCER'S MINDSET MS PEPPER SAYS TO REMEDY THIS ABOUT 40 HIGH PLAINS COTTON FARMERS IN OCTOBER FORMED THE TEXAS ORGANIC COTTON MARKETING COOPERATIVE GROWING COTTON WITHOUT CHEMICALS IS ONLY HALF THE BATTLE CLEANING PROCESSING AND SPINNING THE COTTON AS WELL AS FINISHING AND DYEING THE FABRIC ALL REQUIRE HEAVY CHEMICALS RESEARCHERS AT TEXAS TECH UNIVERSITY'S INTERNATIONAL TEXTILE CENTER ARE SEEKING WAYS TO USE NATURAL PRODUCTS AND HAVE IDENTIFIED SOME SUBSTITUTES BUT ORGANIC COTTON IS ALREADY FINDING SOME OF THE BIG CUSTOMERS IT WILL NEED TO SUCCEED APPAREL MAKERS LIKE ESPRIT DE CORP AND GAP INC BOTH OF SAN FRANCISCO OFFER ORGANICCOTTON LINES AS DO SOME MAKERS OF FURNITURE AND BABY CLOTHES BRENT WISEMAN COORDINATOR OF ORGANIC PROGRAMS AT THE TEXAS AGRICULTURE DEPARTMENT PREDICTS THAT AS MUCH AS 25 OF THE ORGANICCOTTON SUPPLY WILL BE SHIPPED TO JAPANESE BROKERS AND MANUFACTURERS KATAN HOUSE JAPAN INC A SAN ANTONIO TRADING HOUSE SET UP FOR THAT PURPOSE BY JAPANESE INVESTORS PLANS TO ORDER 2000 BALES 480 POUNDS EACH THIS YEAR MISSION VALLEY TEXTILES INC A NEW BRAUNFELS TEXTILE MAKER PLANS TO BUY ONE MILLION POUNDS OF ORGANIC COTTON FROM TEXAS GROWERS THIS YEAR DON COMPTON DIRECTOR OF PRODUCT DEVELOPMENT SAYS ORGANICS STILL MAKE UP LESS THAN 1 OF MISSION VALLEY'S PRODUCTION AND CAN POSE A DILEMMA FOR MANUFACTURERS YOU DON'T WANT TO MAKE TOO BIG A DEAL ABOUT THE ORGANICS BECAUSE PEOPLE MIGHT THINK THE REGULAR GOODS AREN'T ANY GOOD HE SAYS AND THOUGH CONSUMER DEMAND NOW OUTWEIGHS SUPPLY EVEN ORGANIC COTTON'S STRONGEST SUPPORTERS AREN'T SURE HOW BIGOR LASTING THE MARKET REALLY IS I DON'T KNOW WHETHER IT'S GOING TO BE LIKE THE HULA HOOP AND DROP OUT NEXT YEAR OR IF IT'S GOING TO CONTINUE TO GROW SAYS HARVIN SMITH ASSISTANT DIRECTOR FOR THE TEXTILE CENTER AT TEXAS TECH 9402020017 940202 AMERICAN HONDA MOTOR EXPORTS TORRANCE CALIF AMERICAN HONDA MOTOR CO SAID IT PLANS TO EXPORT 75000 NORTH AMERICANMADE CARS TO MORE THAN 30 COUNTRIES THIS YEAR LAST YEAR THE AUTO MAKER A UNIT OF HONDA MOTOR CO OF JAPAN EXPORTED 43328 CARS TO 28 COUNTRIES EXPORTS OF THE ACCORD REACHED 22489 IN 1993 WHILE CIVIC EXPORTS ROSE TO 19205 VEHICLES LAST YEAR NEARLY 57 OF HONDA'S 1993 EXPORTS WERE RIGHTHAND DRIVE MODELS FOR JAPAN AND THE UK 9402020016 940202 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 ALUMINUM CO OF AMERICA 250 MILLION OF NOTES DUE FEB 1 2001 PRICED AS 575S AT 99601 TO YIELD 582 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE FEB 10 1997 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT MONTHLY AND PAY QUARTERLY AT THREE BASIS POINTS ABOVE THE COSTOFFUNDS INDEX CURRENTLY AT 3879 THE FIRST COUPON WILL BE SET MONDAY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF STEPUP MEDIUMTERM NOTES DUE FEB 16 1999 PRICED AT PAR TO YIELD 48 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 572 ON FEB 16 1996 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 234 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC GTE CALIFORNIA INC 300 MILLION OF DEBENTURES PRICED THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO THE DEBENTURES DUE FEB 1 2001 WERE PRICED AS 5625S AT 991184 TO YIELD 578 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 36 BASIS POINTS ABOVE TREASURYS THE DEBENTURES ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P GTE CALIFORNIA IS A UNIT OF GTE CORP MORGAN STANLEY FINANCE PLC 200 MILLION OF CAPITAL UNITS PRICED WITH A 78 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE COMPANY SOLD EIGHT MILLION UNITS PRICED AT 25 APIECE THE UNITS WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE UNITS MATURE IN 20 YEARS IF THEY AREN'T CONVERTED INTO PREFERRED STOCK THE UNITS CAN CONVERT INTO PREFERRED ANYTIME AFTER THE FIRST YEAR AT THE COMPANY'S OPTION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO MORGAN STANLEY FINANCE IS A UNIT OF MORGAN STANLEY GROUP INC PROPERTY TRUST OF AMERICA 200 MILLION TWOPART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY JP MORGAN SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF NOTES DUE FEB 15 2008 WAS PRICED AS 6875S AT 99691 TO YIELD 6917 THE NOTES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS AND THE AVERAGE LIFE IS 105 YEARS THE SECOND TRANCHE 100 MILLION OF NOTES DUE FEB 15 2014 WAS PRICED AS 75S AT 98902 TO YIELD 7613 THE NOTES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS AND THE AVERAGE LIFE IS 18 YEARS BOTH PARTS ARE RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P AND BOTH AMORTIZE UNOCAL CORP 200 MILLION OF NOTES DUE FEB 1 2004 PRICED AS 6375S AT 99728 TO YIELD 6412 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 69 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BOWATER INC 75 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 84 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE COMPANY SOLD THREE MILLION SHARES AT 25 APIECE THE PREFERRED WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED BAA2 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ESMOR CORRECTIONAL SERVICES INC INITIAL OFFERING OF 833333 COMMON SHARES PRICED AT 625 APIECE THROUGH UNDERWRITERS LED BY JANNEY MONTGOMERY SCOTT MAPINFO CORP INITIAL PUBLIC OFFERING OF 14 MILLION SHARES PRICED AT 19 APIECE THROUGH UNDERWRITERS ROBERTSON STEPHENS & CO ALEX BROWN & SONS INC AND FIRST ALBANY CORP PARCPLACE SYSTEMS INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO QUIZNO'S FRANCHISE CORP INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES PRICED AT 5 APIECE THROUGH MANAGER ROCKY MOUNTAIN SECURITIES & INVESTMENTS INC GWINNETT COUNTY GA SCHOOL DISTRICT 1415 MILLION IMPROVEMENT BONDS APPARENTLY WON BY A JP MORGAN SECURITIES INC GROUP WITH A BID SETTING THE NET INTEREST COST AT 45896 YIELDS FOR REOFFERED BONDS RANGE FROM 31 IN 1996 TO 5 IN 20132015 MOODY'S HAS RATED THE BONDS DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEA RATING LOS ANGELES DEPARTMENT OF WATER AND POWER 277 MILLION TWOPART BOND ISSUE APPARENTLY WON BY A CS FIRST BOSTON INC GROUP AND A MERRILL LYNCH & CO GROUP CS FIRST BOSTON IS BELIEVED TO HAVE WON THE 1921 MILLION ELECTRICPLANT REFUNDING REVENUE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 47787 YIELDS FOR THOSE BONDS RANGE FROM 32 IN 1996 TO 525 IN 20162018 THE 85 MILLION ELECTRICPLANT REVENUE BONDS WERE APPARENTLY WON BY MERRILL LYNCH WITH A BID SETTING THE TRUE INTEREST COST AT 528 THOSE BONDS WERE GIVEN YIELDS THAT RANGE FROM 41 IN 2000 TO 54 IN 2034 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA NEW HAMPSHIRE 105 MILLION 1994 SERIES TURNPIKESYSTEM REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 335 IN 1996 TO 535 IN 2019 THE ISSUE HAS SINGLEA RATINGS FROM MOODY'S S&P AND FITCH INVESTORS SERVICE INC NEW YORK TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY 6601 MILLION SERIES 1994A GENERALPURPOSE REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 25 IN 1995 TO 528 IN 2024 MOODY'S HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 228 BILLION OFFERING OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 257 BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 748 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS UNDERWRITERS INCLUDE JP MORGAN SECURITIES INC PRUDENTIAL SECURITIES INC BEAR STEARNS & CO UBS SECURITIES INC GOLDMAN SACHS & CO KIDDER PEABODY & CO MERRILL LYNCH & CO NIKKO SECURITIES CO INTL DONALDSON LUFKIN & JENRETTE SECURITIES CORP LEHMAN BROTHERS INC AND NOMURA SECURITIES INTERNATIONAL INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 113 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199433 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 199432 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS BAYERISCHE HYPOTHEKEN UND WECHSELBANK GERMANY 115 MILLION SWISS FRANCS OF 225 PUBLIC BONDS DUE MAR 8 2001 PRICED AT PAR WITH WARRANTS ATTACHED FOR PURCHASE OF GOLD VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM MAR 15 TO FEB 27 1996 TO PURCHASE GOLD AT YESTERDAY'S LONDON GOLD FIXING PRICE WHEN TERMS WERE TO BE FIXED FEES 25 ICELAND SOVEREIGN 200 MILLION OF NOTES DUE FEB 1 2004 PRICED AS 6125S AT 9881 TO YIELD 6287 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC JAPAN FINANCE CORP FOR MUNICIPAL ENTERPRISES JAPANESE AGENCY 100 MILLION OF 6375 EUROBONDS DUE MAR 9 2004 AT ISSUE AND REOFFER PRICE 9981 VIA SG WARBURG SECURITIES LTD BONDS YIELD 6401 MARGIN OF 12 BASIS POINTS OVER COMPARABLE BRITISH GILT GUARANTOR GOVERNMENT OF JAPAN FEES 0325 KOMMUNINVEST I SVERIGE AB SWEDEN 90 MILLION SWISS FRANCS OF 4 PRIVATELY PLACED NOTES DUE MAR 14 1997 PRICED AT 1021 VIA CREDIT SUISSE FEES 125 NEDERLANDSE WATERSCHAPSBANK NV NETHERLANDS 300 MILLION GUILDERS OF 575 EUROBONDS DUE MAR 2 2004 AT ISSUE PRICE 9987 VIA ING BANK NV REOFFERED AT 9912 TO YIELD 5869 A MARGIN OF 23 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE NITORI CO JAPAN 80 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEB 17 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0375 COUPON AT PAR VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM MAR 2 TO FEB 6 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS ARE TO BE FIXED MONDAY FEES 1625 PORTUGAL SOVEREIGN 750 MILLION ECUS OF 6 GLOBAL BONDS DUE FEB 16 2004 AT ISSUE AND REOFFER PRICE 98325 VIA DRESDNER BANK AG MORGAN STANLEY INTERNATIONAL AND PARIBAS CAPITAL MARKETS BONDS YIELD 623 A MARGIN OF 28 BASIS POINTS OVER COMPARABLE ECU FRENCH TREASURY FEES 035 POINT TATA IRON & STEEL CO INDIA 100 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 1 1999 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD INDICATED COUPON 225 TO 275 BONDS CONVERTIBLE INTO GLOBAL DEPOSITORY RECEIPTS REPRESENTING SHARES IN COMPANY AT INDICATED PREMIUM 10 TO 15 FROM APRIL 1 TO MAR 2 1999 TERMS ARE TO BE FIXED BY TOMORROW AFTER THREE YEARS BONDS ARE CALLABLE IF SHARE PRICE AT LEAST 130 OF CONVERSION PRICE FEES 25 TOMOE CORP JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEB 24 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0375 COUPON AT PAR VIA BANCA DEL GOTTARDO WARRANTS EXERCISABLE FROM MAR 10 TO FEB 10 1998 TO PURCHASE SHARES AT EXPECTED PREMIUM 25 TERMS ARE TO BE FIXED MONDAY FEES 1625 VOLKSWAGEN INTERNATIONAL FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 5375 EUROBONDS DUE MAR 1 1999 AT ISSUE PRICE 102 VIA CSFBEFFECTENBANK AG REOFFERED AT 998 TO YIELD 542 A MARGIN OF 32 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR VOLKSWAGEN AG FEES TWO 9402020014 940202 BUSINESS BRIEF TRANSCO ENERGY CO SECTION OF NATURAL GAS LINE IS PUNCTURED IN MARYLAND TRANSCO ENERGY CO SAID THAT A NATURAL GAS LINE BELONGING TO ITS TRANSCONTINENTAL GAS PIPE LINE CORP UNIT IN ROCKVILLE MD WAS PUNCTURED AFTER IT WAS STRUCK BY CONSTRUCTION EQUIPMENT A 12MILE SECTION OF THE PIPELINE LOCATED NEAR ROUTE 28 AND RESEARCH BOULEVARD IN ROCKVILLE WAS SHUT DOWN MINUTES AFTER THE INCIDENT YESTERDAY MORNING THE COMPANY SAID THERE WERE NO INJURIES EXPLOSION OR FIRE ALTHOUGH AUTHORITIES EVACUATED BUSINESSES AND RESIDENTS ACCORDING TO THE ASSOCIATED PRESS THEY LATER REOPENED THE AREA TRANSCO SAID THE PIPELINE WAS PUNCTURED BY A BACKHOE WORKING IN THE AREA THE CONSTRUCTION WORK WAS BEING PERFORMED BY A THIRD PARTY ON THE COMPANY'S RIGHTOFWAY THE BROKEN LINE IS ONE OF FOUR RUNNING THROUGH THE AREA FROM THE GULF COAST AND SUPPLYING MUCH OF THE EAST TRANSCO SAID REPAIRS ARE EXPECTED TO BE COMPLETE THIS WEEK THE COMPANY SAID IT DOESN'T ANTICIPATE ANY DISRUPTION IN SERVICE BECAUSE GAS WAS REROUTED TO THE OTHER LINES 9402020013 940202 WHO'S NEWS SUNAMERICA INC SUNAMERICA INC LOS ANGELES KAREN HASTIE WILLIAMS A PARTNER IN THE LAW FIRM OF CROWELL & MORING WAS ELECTED A DIRECTOR OF THIS FINANCIALSERVICES CONCERN THAT SPECIALIZES IN RETIREMENT SAVINGS PRODUCTS AND SERVICES MS WILLIAMS 49 YEARS OLD FILLS THE VACANCY CREATED BY THE RETIREMENT OF WAYNE M HOFFMAN 70 9402020012 940202 ECONOMY FED'S MULLINS UNEXPECTEDLY RESIGNS TO JOIN HIGHTECH INVESTING GROUP BY DAVID WESSEL AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD RESIGNED TO GO INTO THE HIGHTECHNOLOGY MONEYMANAGEMENT BUSINESS WITH A GROUP OF PROMINENT EXILES FROM SALOMON BROTHERS INC'S BONDARBITRAGE DESK MR MULLINS'S UNEXPECTED RESIGNATION COINCIDES WITH THE EXPIRATION OF WAYNE ANGELL'S TERM AS A FED GOVERNOR ALLOWING PRESIDENT CLINTON TO FILL TWO OF THE FED'S SEVEN SEATS AT A PIVOTAL MOMENT AS FED CHAIRMAN ALAN GREENSPAN MADE CLEAR EARLIER THIS WEEK THE FED IS NOW CONTEMPLATING WHEN TO RAISE SHORTTERM INTEREST RATES AND HOW MUCH THE WHITE HOUSE HOPES THE FED WON'T MOVE SOON AND WHEN IT DOES THAT IT WON'T MOVE RATES UP VERY MUCH PUTTING TWO OF ITS OWN APPOINTEES ON THE BOARD CAN'T HURT TWO OUT OF SEVEN NOW THAT'S REAL LEVERAGE REP BARNEY FRANK D MASS SAID YESTERDAY MR MULLINS'S TERM WOULD HAVE EXTENDED UNTIL JANUARY 1996 MR GREENSPAN'S TERM AS CHAIRMAN LASTS UNTIL MARCH 1996 BOND PRICES REACTED NEGATIVELY TO MR MULLINS'S RESIGNATION IN PART BECAUSE IT WILL GIVE THE CLINTON ADMINISTRATION A GREATER CHANCE TO INFLUENCE THE MAKEUP OF THE BOARD MR MULLINS WILL BECOME A PARTNER AT LONGTERM CAPITAL MANAGEMENT A GREENWICH CONN FIRM FOUNDED LAST SEPTEMBER BY JOHN MERIWETHER THE FORMER SALOMON BROTHERS VICE CHAIRMAN WHO WAS FORCED OUT AFTER THE 1991 TREASURY SECURITIES SCANDAL AT THE FIRM A UNIT OF SALOMON INC THE SECURITIES AND EXCHANGE COMMISSION SUSPENDED HIM FROM THE INDUSTRY FOR THREE MONTHS AND FINED HIM 50000 FOR FAILING TO SUPERVISE TRADER PAUL MOZER THE CENTRAL PLAYER IN THE SCANDAL MR MERIWETHER NEITHER ADMITTED NOR DENIED WRONGDOING IN ACCEPTING THE SUSPENSION AT LONGTERM CAPITAL MR MERIWETHER HAS SET OUT TO RECREATE THE SWINGING ATMOSPHERE OF THE SALOMON TRADING FLOOR WHERE HE WON RENOWN FOR REPORTEDLY BLUFFING THENCHAIRMAN JOHN GUTFREUND AT A 1 MILLION HAND OF LIAR'S POKER A BETTING GAME PLAYED WITH DOLLAR BILLS MR MERIWETHER HAS LURED A MIX OF BRAINY ACADEMICS AND FORMER SALOMON COLLEAGUES MANY OF THEM LONGTIME ASSOCIATES OF MR MULLINS INCLUDING MYRON SCHOLES MR MULLINS'S FIRST FINANCE PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND MIT CLASSMATE ERIC ROSENTHAL MR MULLINS DESCRIBED THE JOB YESTERDAY AS A RETURN TO HIS ROOTS IN THE INTELLECTUAL CHALLENGES OF HIGHTECH FINANCE IT ALSO PAYS BETTER THAN THE 123100 HE EARNS AT THE FED HE WOULDN'T SAY HOW MUCH MR CLINTON'S ECONOMIC ADVISERS LEARNED OF MR MULLINS'S DECISION ONLY MONDAY AND WERE TO MEET LATE YESTERDAY TO TALK ABOUT LOOKING FOR A SUCCESSOR CHIEF WHITE HOUSE ECONOMIST LAURA TYSON SAID SHE SAID SHE DOUBTED THERE WOULD BE A QUICK DECISION THE ADVISERS HAVE RECOMMENDED THAT HE NAME BROOKINGS INSTITUTION ECONOMIST GEORGE PERRY TO REPLACE MR ANGELL THE WHITE HOUSE HAS ASKED GOVERNMENT LAWYERS WHETHER MR PERRY MAY HAVE A CONFLICT OF INTEREST BECAUSE HIS WIFE IS A PORTFOLIO MANAGER FOR THREE STOCK MUTUAL FUNDS THE LAWYERS HAVEN'T YET GIVEN A FINAL ANSWER WHITE HOUSE OFFICIALS SAID THIS WEEK MR PERRY WOULD BE A CONTENDER FOR THE VICE CHAIRMAN'S JOB WHICH IS MR CLINTON'S TO FILL BUT OTHERS WHO WEREN'T INTERESTED IN BEING A RANKANDFILE FED GOVERNOR MIGHT ALSO BE INTERESTED AMONG THEM TREASURY OFFICIAL ALICIA MUNNELL DEPUTY BUDGET DIRECTOR ALICE RIVLIN AND WHITE HOUSE ECONOMIST ALAN BLINDER THE WHITE HOUSE WILL FACE STRONG PRESSURE TO NAME A WOMAN OR MINORITYGROUP MEMBER TO ONE OF THE TWO VACANCIES A BUSH APPOINTEE WHO WAS WELLLIKED BY CLINTON ADMINISTRATION OFFICIALS MR MULLINS WAS INSTRUMENTAL IN ORCHESTRATING THE FED'S ATTENTIONGRABBING INTERESTRATE CUT AT THE END OF 1991 AND IS REGARDED AS SECOND ONLY TO MR GREENSPAN IN HIS INFLUENCE AT THE FED HE HAD OFTEN VOWED TO PRESS AS HARD TO RAISE INTEREST RATES AS HE DID TO CUT THEM BUT LEAVES AFTER FOUR YEARS WITHOUT EVER VOTING TO BOOST RATES MR MULLINS 47 YEARS OLD CAME TO WASHINGTON IN 1988 AS ASSISTANT TREASURY SECRETARY FOR DOMESTIC FINANCE AFTER 14 YEARS AT THE HARVARD BUSINESS SCHOOL THE PLAN FOR LONGTERM CAPITAL IS AN AMBITIOUS ONE MR MERIWETHER INTENDS TO RAISE ABOUT 25 BILLION TO TRADE COMPLEX AND HIGHLY ILLIQUID FINANCIAL INSTRUMENTS USING COMPUTERS TO IDENTIFY MARKET IMPERFECTIONS THIS WOULD BE BY FAR THE LARGEST STARTUP OF ITS KIND WITH THE LEVERAGE COMMON TO SUCH INSTRUMENTS TRADERS SAY THE FIRM COULD TAKE POSITIONS AS LARGE AS 100 BILLION FOR EVERY 1 BILLION OF CASH IN HAND BUT THE VENTURE SEEMS TO BE OFF TO A SLOW START PEOPLE AT OTHER SIMILAR TRADING OPERATIONS SAY MR MERIWETHER HIRED MERRILL LYNCH & CO'S INSTITUTIONAL SALES FORCE TO SPEED THE MONEYRAISING AND SET THE MINIMUM INVESTMENT AT 10 MILLION BUT INVESTORS PROVED FAR LESS EAGER THAN MR MERIWETHER HAD THOUGHT PEOPLE FAMILIAR WITH THE FUNDRAISING SAY THE EFFORT HAS STALLED OUT SHORT OF 1 BILLION PREVENTING THE FUND FROM ACCEPTING ITS FIRST ROUND OF INVESTMENTS A MILESTONE THAT WAS TO OCCUR ON JAN 4 AND FROM STARTING TO TRADE A SPOKESMAN FOR THE FIRM SAYS THAT THE FUND ANTICIPATES CLOSING ON SOME INVESTORS' MONEY LATER THIS MONTH WHICH WOULD ALLOW THE FIRM TO START TRADING THEN THE FIRM'S PRIVATEPLACEMENT MEMORANDUM SUGGESTS SEVERAL REASONS WHY INVESTORS MAY HAVE BALKED TO BEGIN WITH INVESTING 10 MILLION AT ONE SHOT IS STIFF FOR MOST INVESTORS MORE DAMAGING MAY HAVE BEEN THE DISCLOSURE THAT THE FIRM'S PRINCIPALS PLAN TO CONTRIBUTE 100 MILLION BUT THEIR FEES ARE SO GENEROUS THAT THEY GET THEIR MONEY BACK NO MATTER HOW WELL THEIR INVESTORS DO LONGTERM CAPITAL COLLECTS 2 ON THE MONEY THEY RAISE ANNUALLY ON TOP OF A 25 SHARE OF EACH LIMITED PARTNER'S PROFITS INDEED MR MERIWETHER'S CREW WOULD RECOUP THEIR INITIAL INVESTMENT WITH A LOUSY PERFORMANCE EVEN IF THE FIRM RAISES NOT ONE CENT MORE THAT'S BECAUSE INVESTORS CAN ONLY WITHDRAW THEIR FUNDS EVERY THIRD YEAR INSTEAD OF EVERY THREE MONTHS AS IS COMMON AMONG SUCH SPECULATIVE FUNDS MR MULLINS LEFT THE TREASURY BEFORE THE SALOMON SCANDAL HIT AND HADN'T ANYTHING TO DO WITH THE DISCIPLINING OF MR MERIWETHER HE WAS THE FED'S POINT MAN ON THE SALOMON MATTER AND OTHER FINANCIALMARKET ISSUES IF I HAD THE SLIGHTEST RESERVATION ABOUT THE INTEGRITY OF MY PARTNERS I WOULD HAVE HAD MANY OTHER OPPORTUNITIES HE SAID YESTERDAY NEITHER MR MULLINS WHOSE RESIGNATION IS EFFECTIVE FEB 14 NOR MR ANGELL WILL PARTICIPATE IN THIS WEEK'S MEETING OF THE FED'S POLICYSETTING COMMITTEE 9402020011 940202 WHO'S NEWS ST MARY LAND & EXPLORATION CO ST MARY LAND & EXPLORATION CO DENVER MARK A HELLERSTEIN 42 YEARS OLD PRESIDENT OF THIS OIL AND NATURAL GAS COMPANY WILL ASSUME THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER IN MAY MR HELLERSTEIN WILL SUCCEED THOMAS E CONGDON 67 WHO WILL REMAIN CHAIRMAN 9402020010 940202 WHO'S NEWS BIOWHITTAKER INC BIOWHITTAKER INC WALKERSVILLE MD THOMAS R WINKLER 51 YEARS OLD WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SIX MR WINKLER IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CLINICAL DIAGNOSTIC TESTING SYSTEMS PRODUCER 9402020009 940202 MARKETING & MEDIA FCC GIVES INFINITY CLEARANCE TO BUY LOS ANGELES STATION BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION SENDING A MIXED MESSAGE ON ITS POLICY AGAINST LEWD BROADCASTS VOTED 2 TO 1 TO LET INFINITY BROADCASTING CORP BUY A MAJOR LOS ANGELES RADIO STATION AT THE SAME TIME THE COMMISSION PROPOSED 400000 IN NEW FINES ON INFINITY FOR LEWD REMARKS BY SHOCK JOCK HOWARD STERN INFINITY ALREADY IS CONTESTING 13 MILLION IN FCC FINES FOR EARLIER ALLEGED VIOLATIONS OF THE AGENCY'S INDECENCY RULES COMMISSIONER JAMES QUELLO A FORMER BROADCASTER WAS THE LONE DISSENTER IN THE APPROVAL LATE MONDAY OF THE LICENSE TRANSFER HE ARGUED THAT AN APPROVAL MIGHT BE MISINTERPRETED AS THE FCC ENDORSING INFINITY AND HOWARD STERN ACTIONS MR QUELLO IN A STATEMENT SAID FIRST AMENDMENT RIGHTS WERE NOT CONFERRED BY OUR FOUNDING FATHERS FOR REPULSIVE INDECENT OR POSSIBLY OBSCENE PURPOSES COMMISSIONERS ANDREW BARRETT AND ERVIN DUGGAN VOTED TO APPROVE THE LICENSE TRANSFER CHAIRMAN REED HUNDT ABSTAINED BECAUSE HIS FORMER LAW FIRM REPRESENTS THE LOS ANGELES STATION KRTHFM THE FCC HAD BEEN CONSIDERING WHETHER TO PULL ALL OF INFINITY'S 22 RADIO LICENSES BUT BACKED OFF AFTER A FEDERAL APPEALS COURT LATE LAST YEAR STRUCK DOWN KEY PORTIONS OF FCC RULES GOVERNING INDECENT BROADCASTS UNDER THE RULES THE AGENCY DEFINES INDECENT BROADCASTS AS THOSE THAT DESCRIBE IN TERMS PATENTLY OFFENSIVE AS MEASURED BY CONTEMPORARY COMMUNITY STANDARDS FOR THE BROADCAST MEDIUM SEXUAL OR EXCRETORY ACTIVITIES OR ORGANS STEVEN LEHMAN A WASHINGTON LAWYER WHO REPRESENTS INFINITY SAID THE COMPANY IS GRATIFIED THAT THE COMMISSION GRANTED THE APPLICATION NEVERTHELESS HE SAID INFINITY OFFICIALS WOULD HAVE PREFERRED A CONSENSUS VOTE JUST WHAT EFFECT THE VOTE WILL HAVE ON INFINITY'S ABILITY TO BUY MORE STATIONS IS UNCERTAIN THE COMPANY HAS APPLIED TO BUY WPGCAM AND WPGCFM IN SUBURBAN WASHINGTON COMMISSIONER QUELLO SAID HE OPPOSES TRANSFERRING MORE LICENSES TO INFINITY MR DUGGAN LEFT THE COMMISSION MONDAY TO BECOME HEAD OF THE PUBLIC BROADCASTING SERVICE AND MR HUNDT WILL LIKELY WEIGH IN ON THAT LICENSE TRANSFER SEPARATELY INFINITY REPORTED SHARPLY HIGHER FOURTHQUARTER NET INCOME REFLECTING HIGHER ADVERTISING REVENUE AND ADDED REVENUE FROM ACQUISITIONS INFINITY SAID IT HAD NET INCOME OF 91 MILLION OR 20 CENTS A SHARE UP FROM 25 MILLION OR SEVEN CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE INCREASED 36 TO 698 MILLION FROM 511 MILLION INFINITY SAID BROADCAST CASH FLOW A KEY MEASURE FOR ELECTRONIC MEDIA COMPANIES ROSE TO 29 MILLION FROM 203 MILLION 9402020008 940202 WHO'S NEWS AMERICAN HERITAGE LIFE INVESTMENT CORP AMERICAN HERITAGE LIFE INVESTMENT CORP JACKSONVILLE FLA CLARENCE V MCKEE 51 YEARS OLD CHAIRMAN OF MCKEE COMMUNICATIONS WAS ELECTED A DIRECTOR OF THIS LIFE INSURANCE HOLDING COMPANY EXPANDING THE BOARD TO 18 9402020007 940202 WHO'S NEWS COMMONWEALTH ENERGY SYSTEM COMMONWEALTH ENERGY SYSTEM CAMBRIDGE MASS SINCLAIR WEEKS JR 70 YEARS OLD WAS NAMED CHAIRMAN OF THE BOARD OF TRUSTEES OF THIS UTILITY HOLDING COMPANY MR WEEKS CHAIRMAN OF REED & BARTON CORP OF TAUNTON MASS SUCCEEDS ROBERT E SIEGFRIED 72 WHO HAS REACHED COMMONWEALTH ENERGY'S MANDATORY RETIREMENT AGE FOR TRUSTEES 9402020006 940202 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN CHARLES R LEE 53 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GTE CORP WAS ELECTED A DIRECTOR OF THIS PROVIDER OF HIGHTECHNOLOGY PRODUCTS AND SUPPORT SERVICES TO THE AEROSPACE BUILDING SYSTEMS AND AUTOMOTIVE INDUSTRIES 9402020005 940202 BOMBAY CO SALES INCREASE 17 FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE FOURWEEK PERIOD ENDED SUNDAY AT STORES OPEN AT LEAST A YEAR INCREASED 17 FROM LAST YEAR DESPITE SEVERE WEATHER CONDITIONS AND THE CALIFORNIA EARTHQUAKE WHICH FORCED THE CLOSING OF FOUR STORES THERE TOTAL SALES FOR THE SPECIALTY RETAILER WERE 221 MILLION A 26 INCREASE FROM THE 175 MILLION RECORDED FOR THE FOURWEEK PERIOD ENDED JAN 24 1993 BOMBAY SAID IT HAS SHIFTED ITS RETAIL CALENDAR REMOVING THE HIGHSALES WEEK FOLLOWING CHRISTMAS FROM ITS JANUARY SALES 9402020004 940202 DIVIDEND NEWS DIEBOLD INC DIEBOLD INC DECLARED A 3FOR2 STOCK SPLIT AND BOOSTED ITS QUARTERLY CASH DIVIDEND 10 THE SPLIT IS PAYABLE FEB 22 TO STOCK OF RECORD FEB 10 DIEBOLD SAID THAT AFTER THE SPLIT IT WILL HAVE ABOUT 30 MILLION COMMON SHARES OUTSTANDING THE CANTON OHIO COMPANY ALSO DECLARED A QUARTERLY DIVIDEND OF 22 CENTS A SHARE WHICH REPRESENTS A 10 INCREASE IN ITS DIVIDEND ON A POSTSPLIT BASIS THE NEW FIRSTQUARTER CASH DIVIDEND IS PAYABLE MARCH 31 TO STOCK OF RECORD MARCH 10 DIEBOLD DEVELOPS MAKES AND SERVICES AUTOMATED SELFSERVICE AND SECURITY SYSTEMS 9402020003 940202 WESTINGHOUSE REALIGNS UNIT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT REALIGNED THE MARKETING ORGANIZATION AND CREATED TWO NEW BUSINESSES WITHIN ITS ENERGY SYSTEM BUSINESS UNIT IN AN EFFORT TO INCREASE ITS NUCLEAR POWER PLANT BUSINESS THE COMPANY SAID THE CHANGE WILL HELP IT PURSUE NUCLEAR PLANT PROJECTS ABROAD WHERE IT EXPECTS SIGNIFICANT OPPORTUNITIES OVER THE NEXT SEVERAL YEARS 9402020002 940202 WHO'S NEWS TECHNOLOGY SOLUTIONS CO TECHNOLOGY SOLUTIONS CO CHICAGO JOHN T KOHLER 47YEAROLD SENIOR VICE PRESIDENT AND A MEMBER OF THE OFFICE OF THE CHAIRMAN WAS NAMED PRESIDENT AND TO THE NEW POST OF CHIEF OPERATING OFFICER OF THIS COMPUTER SYSTEMS AND SERVICES CONCERN THE POST OF PRESIDENT HAD BEEN VACANT SINCE JUNE 1993 9402020001 940202 TEXAS JOURNAL IN THIS CONFLICT THE STATE IS SURE TO WIN AND LOSE BY LAURA JOHANNES TEXAS' ALTERNATIVEFUELS PROGRAM ALREADY TROUBLED BY DELAYS HAS HIT AN EMBARRASSING 50 MILLION SNAG AND TO FIX IT THE STATE PLANS TO SUE ITSELF IT ALL STARTED LAST YEAR WHEN THE LEGISLATURE TO SPEED CONVERSION OF GOVERNMENT VEHICLE FLEETS TO ENVIRONMENTALLY FRIENDLY FUELS CREATED THE ALTERNATIVE FUELS COUNCIL THE LEGISLATURE EMPOWERED THE COUNCIL TO LEND 50 MILLION IN STATE BOND MONEY TO GOVERNMENT BODIES CONVERTING VEHICLES BUT OOPS THE LEGISLATION IS MISSING A COUPLE OF SENTENCES THE ONES THAT SHOULD HAVE SAID GOVERNMENT ENTITIES THAT BORROW THE MONEY MUST PAY IT BACK TO THE STATE TREASURY LACKING THOSE THE ATTORNEY GENERAL'S OFFICE WHICH MUST CLEAR ALL STATE BOND ISSUES SAYS IT WON'T APPROVE ANY FUELS COUNCIL BONDS THE STATUTE DOES NOT PROVIDE FOR A SOURCE OF REPAYMENT SAYS JAMES A THOMASSEN CHIEF OF THE ATTORNEY GENERAL'S PUBLICFINANCE DIVISION BECAUSE THE LEGISLATURE WON'T MEET THIS YEAR IT CAN'T FIX THE GLITCH UNTIL AT LEAST JANUARY FOUR MONTHS AFTER TRANSIT AUTHORITIES AND STATE AGENCIES ARE SUPPOSED TO HAVE CONVERTED 30 OF THEIR FLEETS TO CLEANERBURNING FUELS SO ARGUING THAT THE ATTORNEY GENERAL'S OFFICE IS NITPICKING THE ALTERNATIVE FUELS COUNCIL AND THE TEXAS PUBLIC FINANCE AUTHORITY PLAN TO CHALLENGE ITS OPINION IN COURT THEY PLAN TO FILE A LAWSUIT IN STATE DISTRICT COURT IN AUSTIN IT ISN'T YET CLEAR WHETHER THE SUIT WILL NAME THE ATTORNEY GENERAL OR THE STATE OF TEXAS THE FINANCE AUTHORITY HAS AUTHORIZED SPENDING UP TO 25000 ON THE LEGAL ACTION TO BE ADDED TO THE UNDERWRITING COST OF THE BONDS SOME SAY THE LAWSUIT SHOULDN'T BE NECESSARY I THINK IT'S RIDICULOUS FOR THE ATTORNEY GENERAL TO MAKE US GO THROUGH THIS WHEN IT WAS OBVIOUS THAT THE INTENT OF THE LEGISLATION WAS TO SET UP THE COUNCIL AND FOR US TO LOAN OUT THE MONEY SAYS RAILROAD COMMISSIONER BARRY WILLIAMSON A MEMBER OF THE FUELS COUNCIL THIS IS REALLY WHAT GIVES GOVERNMENT A BAD NAME MR THOMASSEN REPLIES WE HAVE TO DO A LEGAL ANALYSIS AND PERCEIVED INTENTIONS ARE NOT SUFFICIENT 9402020036 940127 FASB PROPOSES DROPPING RULE OPPOSED BY BANKS NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD YIELDING TO PRESSURE FROM BANKS PROPOSED DROPPING A REQUIREMENT THAT WOULD HAVE REDUCED BANKS' PROFITS RELATED TO TROUBLED LOANS THE REQUIREMENT BY THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS WOULD HAVE PROHIBITED A BANK IN CERTAIN INSTANCES FROM TAKING INTO PROFIT THE INTEREST FROM TROUBLED LOANS BUT BANKS COMPLAINED THAT THE REQUIREMENT WAS CONFUSING AND WOULD HAVE REQUIRED THEM TO MAKE COSTLY CHANGES IN THEIR COMPUTER LOANINTEREST PROGRAMS OVERSEEN BY BANK REGULATORS IN WASHINGTON DC MARTI SWOROBACH A SPOKESWOMAN FOR THE 2000MEMBER SAVINGS & COMMUNITY BANKERS OF AMERICA SAID THAT BANKERS ARE PLEASED WITH FASB'S CHANGE OF HEART ON IMPAIRED LOANS TIMOTHY LUCAS FASB'S RESEARCH DIRECTOR SAID THAT THE PROPOSAL WILL BE ISSUED SHORTLY AND VOTED ON BY THE FASB AFTER WEIGHING PUBLIC COMMENT THE BROADER RULE CONTAINING THE REQUIREMENT ISSUED BY THE FASB IN MID1993 IS SCHEDULED TO GO INTO EFFECT FOR BANKS' FINANCIAL REPORTS STARTING IN 1995 HE ADDED SEE RELATED LETTER LETTERS TO THE EDITOR FASB SIMPLIFIES STATEMENT 114 WSJ FEB 2 1994 9401270029 YY94 MM02 9402020021 940111 WARNING AMERICANS OVERUSE OVERTHECOUNTER DRUGS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL THERE IS ONE IN JUST ABOUT EVERY OFFICE A DESK THAT DOUBLES AS A DRUGSTORE THE CONTENTS MAY VARY A BOTTLE OF IBUPROFEN AND SOME ASPIRIN IN ONE DRAWER A JAR OF VITAMINS AND SOME HEADACHE POWDERS IN ANOTHER BUT THE IDEA IS THE SAME TO FURNISH A QUICK REMEDY FOR THE DAY'S ACHES AND PAINS SAYS BETH GAULT A HOSPITAL ADMINISTRATOR IN ATLANTA IT SEEMS LIKE EVERYBODY IN THE OFFICE IS ALWAYS COMING IN TO BORROW MY ADVIL THE DANGER OF OVERUSING OVERTHECOUNTER REMEDIES HAS ALWAYS BEEN PRESENT IF TWO TABLETS ARE GOOD THE THINKING GOES FOUR MUST BE BETTER WHAT IS CHANGING FOR THE WORSE ACCORDING TO DOCTORS IS PEOPLE'S DESIRE OR WILLINGNESS TO CONSUME THESE DRUGS ON A REGULAR BASIS ALMOST AS A MATTER OF HABIT I SEE PEOPLE OUT FOR DINNER WHO ARE OBVIOUSLY WELL AND HEALTHY AND BETWEEN THEIR MAIN DISH AND DESSERT THEY TAKE FIVE OR SIX VITAMIN PILLS SAYS BERNARD ROSOF A GASTROENTEROLOGIST IN NEW YORK THAT'S OVERUSING AMERICANS AS A SOCIETY ARE OVERMEDICATED SOME EXPERTS SAY BECAUSE OF A CULTURE THAT NO LONGER MAKES ALLOWANCES FOR PAIN ADVERTISEMENTS ON TELEVISION OR IN MAGAZINES THEY SAY HAVE LEFT THE IMPRESSION THAT THERE IS A PILL TO MAKE EVERY PAIN OR PROBLEM GO AWAY SOME OF THESE AILMENTS DOCTORS NOTE WILL GO AWAY BY THEMSELVES IF LEFT ALONE FOR A FEW DAYS BUT SALES OF IBUPROFEN PRODUCTS SUCH AS ADVIL MOTRIN IB NUPRIN AND PRIVATELABEL VERSIONS HAVE MORE THAN TRIPLED SINCE THE PAINKILLER WAS APPROVED FOR OVERTHECOUNTER SALES NEARLY A DECADE AGO THE PRESCRIPTION ANTIFUNGAL DRUGS THAT WENT OVER THE COUNTER IN 1990 AND 1991 MONISTAT GYNELOTRIMIN AND MYCELEX HAVE ALSO SEEN SALES SKYROCKET SALES OF GYNELOTRIMIN AND A RELATED PRODUCT LOTRIMIN FOR EXAMPLE JUMPED TO 146 MILLION IN 1992 FROM 649 MILLION BEFORE THE DRUGS WENT OVER THE COUNTER ACCORDING TO DATA COLLECTED BY TWO MONITORING COMPANIES IMS AMERICA LTD AND NIELSEN MARKETING RESEARCH AND MORE DRUGS WILL SOON BE HEADING TOWARD OVERTHECOUNTER STATUS THE NONPRESCRIPTION DRUG MANUFACTURERS ASSOCIATION SAYS THE FOOD AND DRUG ADMINISTRATION IS EVALUATING SOME 25 DRUGCOMPANY APPLICATIONS FOR MEDICINES TO BE SOLD OVER THE COUNTER COMPARED WITH 51 APPROVALS IN THE PAST 20 YEARS SELFMEDICATION CARRIED TO AN EXTREME CAN HAVE SERIOUS CONSEQUENCES SOME VITAMINS IF TAKEN IN LARGE AMOUNTS CAN CAUSE KIDNEY STONES DR ROSOF SAYS HEAVY DOSES OF SOME TYPES OF PAINKILLERS CAN RAISE BLOOD PRESSURE OR CAUSE GASTRIC PROBLEMS EVEN WHEN EXCESSIVE USE OF DRUGS ISN'T DIRECTLY HARMFUL THE PRACTICE CAN DELAY DIAGNOSIS OF A MORE SERIOUS AILMENT IT CERTAINLY WOULD BE RIDICULOUS TO GO TO THE DOCTOR FOR EVERY LITTLE THING SAYS REGINALD HARRIS A PHYSICIAN IN SHELBY NC BUT ALL OVERTHECOUNTER DRUGS ARE DANGEROUS IF OVERUSED AND WE ARE OVERUSING THEM BUT THE DRUGS' BENEFITS CONSUMERS SAY ARE NUMEROUS JANICE STEEGE AN ATLANTA HOUSEWIFE SAYS SHE USED TO GET SEVERE MIGRAINE HEADACHES REGULARLY PRESCRIPTION PAINKILLERS LEFT HER FEELING DROWSY AND AFRAID OF BECOMING ADDICTED SO SHE SWITCHED TO FOUR IBUPROFEN TABLETS AT THE FIRST SIGN OF PAIN I KEEP A PACKET IN MY PURSE A PACKET IN THE CAR SHE SAYS AND I DON'T GET HEADACHES ANYMORE OTHER CONSUMERS USE NONPRESCRIPTION DRUGS TO SAVE TIME AND MONEY WOMEN WITH CHRONIC YEAST INFECTIONS FOR INSTANCE SAY THEY CAN NOW TREAT THEMSELVES WITHOUT GOING THROUGH THE BOTHER OF AN UNCOMFORTABLE PELVIC EXAM JUST TO FIND OUT WHAT THEY ALREADY KNOW PEOPLE ARE BUSY SAYS SHIRLEY CANTWELL DAVIS A REGISTERED NURSE IN ATLANTA WHOSE HUSBAND TAKES AN ASPIRIN DAILY TO PREVENT A HEART ATTACK WE DON'T WANT TO GO SIT IN A DOCTOR'S OFFICE ALL DAY BUT CONSUMERS MAY NEVERTHELESS FIND THEMSELVES IN THE DOCTOR'S OFFICE EITHER FOR COMPLICATIONS ARISING FROM PROLONGED USE OF OVERTHECOUNTER DRUGS THEMSELVES OR FOR FAILING TO RECOGNIZE THE PRESENCE OF A MORE SERIOUS ILLNESS IT'S REALLY UNCOMMON FOR A WOMAN TO HAVE MORE THAN TWO YEAST INFECTIONS IN A YEAR SAYS MICHAEL SPENCE A PHILADELPHIA OBSTETRICIAN AND GYNECOLOGIST YOU'RE OUT THERE AND YOU'RE BUYING THESE CREAMS OVER AND OVER AGAIN AND YOU'RE THINKING I'M GETTING BETTER I JUST HAVE THIS PROBLEM' BUT IT COULD BE A SYMPTOM OF SOMETHING ELSE LIKE HIV RECURRENT YEAST INFECTIONS WERE RECENTLY ADDED TO THE LIST OF SYMPTOMS OF AIDS OTHER SERIOUS DISEASES CAN ALSO REMAIN UNDETECTED FOR A PERIOD WITH THE HELP OF NONPRESCRIPTION DRUGS A 32YEAROLD SOCIAL WORKER IN SANDY SPRINGS GA RECENTLY DISCOVERED THAT HER PAINFUL MENSTRUAL PERIODS WHICH IBUPROFEN PILLS HAD ALLEVIATED FOR SIX YEARS WERE ACTUALLY A SIGN OF ENDOMETRIOSIS A CONDITION OF THE UTERUS THAT IS NOW PREVENTING HER FROM GETTING PREGNANT THE PILLS TOOK CARE OF THE PAIN SO I NEVER BOTHERED GOING TO THE DOCTOR SHE SAYS I JUST THOUGHT IT WAS NORMAL BUT MANY CONSUMERS ARE NOT ABOUT TO LET ANY DISCOMFORT GO UNTREATED EVEN FOR A FEW MINUTES PAIGE YOUNG A 28YEAROLD BANKER IN GREENSBORO NC RECALLS A MORNING WHEN MENSTRUAL CRAMPS PROMPTED HER TO TAKE SOME IBUPROFEN TABLETS BY THE END OF THE DAY SHE HAD TAKEN 18 IN ALL AND WAS SUFFERING ABDOMINAL PAINS A DOCTOR TOLD HER THAT THE IBUPROFEN HAD DAMAGED THE LINING IN HER STOMACH THE EXPERIENCE DIDN'T SCARE HER OFF FAR FROM IT NOW SAYS MS YOUNG WHEN HER CRAMPS BEGIN SHE TAKES THREE PILLS AND THEN FOLLOWS UP LATER IN THE DAY WITH SIX MORE I DON'T WORRY ABOUT USING TOO MUCH SHE SAYS ADDING THAT THE MANUFACTURER'S DAILY RECOMMENDED DOSAGE OF SIX TABLETS IS PROBABLY OVERCAUTIOUS IT'S ONLY NINE SEE RELATED LETTER LETTERS TO THE EDITOR PROTECT OUR VITAMINS WSJ FEB 2 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SOME GOOD MEDICINES ARE NONPRESCRIPTION WSJ FEB 3 1994 9401110147 9402020021 YY94 MM02 9402020015 940125 THRILL OF DOWNHILL ISN'T LOST ON SKIERS OF THE SUNNY SOUTH GRASSY CONDITIONS AND ROCKS ARE PERILS OF SNOWLESSNESS SPARKS FLY AT CLOUDMONT BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL SKY VALLEY GA THIS IS MONICA GREENWOOD'S FIRST VISIT TO GEORGIA'S LONE SKI RESORT KNOWN AS SKY VALLEY BUT SHE ALREADY HAS LEARNED A BASIC LESSON ABOUT SKIING THE DEEP SOUTH SKIS DON'T SLIDE ON MUD SAYS MS GREENWOOD CASTING A RUEFUL GLANCE UP THE MOUNTAIN WHICH HAS NO SNOW ON IT EXCEPT FOR TWO NARROW SWATHS CREATED BY SKY VALLEY'S SNOWMAKING MACHINES UNFORTUNATELY MS GREENWOOD HAD TO LEARN THAT LESSON THE HARD WAY THE SECRETARY FROM ATLANTA IS COVERED WITH MUD FROM GLOVE TO BOOT HAVING VEERED OFF THE SWATH AND INTO THE DIRT SO AS TO AVOID A COUPLE OF FALLEN SKIERS MUD IS JUST ONE OF MANY HAZARDS AT THE DOZEN OR SO SKI AREAS IN THE CUSTOMARILY SNOWSTARVED STATES OF GEORGIA TENNESSEE NORTH CAROLINA AND ALABAMA THANKS TO WARM CLIMATES AND LOW ALTITUDES SKIERS HERE FREQUENTLY CONTEND WITH SLUSHY ICY EVEN GRASSY CONDITIONS REMARKABLY NONE OF THAT SEEMS TO DAMP ENTHUSIASM FOR THE SPORT EVERY WINTER WEEKEND THOUSANDS OF SOUTHERNERS PUT UP WITH LONG LIFT LINES AND SKI RUNS AS SHORT AS A FEW HUNDRED FEET JUST TO EXPERIENCE THE THRILL OF DOWNHILL CLOSE TO HOME HEY SKIING IS SKIING SAYS LARRY CLARK A SOUTHERN SLOPE DEVOTEE FROM KENNESAW GA IF I CAN HAVE TIME ON SNOW WHETHER IT BE ON ICE SLUSH OR CRUD I'M HAPPY MR CLARK'S ATTITUDE ISN'T UNCOMMON SOUTHERNERS WILL SKI ON ANYTHING SAYS GARY JONES WHO RUNS ALABAMA'S CLOUDMONT SKI RESORT SNOW ON CLOUDMONT'S TWO TINY LIGHTED SLOPES IS OFTEN SO THIN THAT SKIERS SLIDE OVER ROCKS WHICH ARE PRETTY HARD ON SKIS AT NIGHT YOU CAN SEE SPARKS FLY SAYS MR JONES WHO REPLACED MOST OF HIS RENTAL EQUIPMENT THIS YEAR THE VERTICAL DROP AT CLOUDMONT IS ABOUT 150 FEET 3000 FEET IS MORE TYPICAL IN A COLORADO RESORT WHERE THERE ARE REAL MOUNTAINS AS WELL AS REAL SNOW EVEN THE HIGHEST SOUTHEASTERN PEAK NORTH CAROLINA'S BEECH MOUNTAIN AT 5505 FEET IS MUCH LOWER THAN THE BASE OF MOST ROCKY MOUNTAIN SKI AREAS BEECH MOUNTAIN GETS 57 INCHES OF NATURAL SNOW EACH YEAR ON AVERAGE CLOUDMONT GETS ABOUT SIX IN THE SOUTH 60DEGREE WINTER DAYS AREN'T UNUSUAL SO IT'S A CONSTANT BATTLE TO KEEP SNOW ON THE SLOPES AND MOST SNOWMAKING EQUIPMENT WHICH WORKS BY SPRAYING WATER HIGH INTO THE AIR ISN'T EFFECTIVE UNLESS THE AIR TEMPERATURE FALLS TO 28 DEGREES WEATHER PERMITTED JUST A MONTH OF SKIING LAST YEAR AT CLOUDMONT NORTH CAROLINA THE SOUTH'S BIGGEST SKI STATE DRAWS ABOUT 500000 SKIERS A YEAR ACCORDING TO RICK KIRKPATRICK WHO STUDIED THE INDUSTRY AS AN ECONOMICS PROFESSOR AT APPALACHIAN STATE UNIVERSITY IN BOONE NC SOUTHERN SKI TRIPS CAN BE IMPOSSIBLE TO PLAN MARK MITCHELL A HUNTSVILLE ALA SCHOOLTEACHER RECALLS THE GREAT EXPECTATIONS HE AND ABOUT 20 FRIENDS HAD WHEN THEY SCHEDULED A NEW YEAR'S WEEKEND RETREAT AT OBER GATLINBURG SKI RESORT IN TENNESSEE WE WERE READY HE SAYS WE ALL WENT OUT AND BOUGHT THE GLOVES AND THE LITTLE SUITS AND THE THERMALS AND THEN THERE WAS NO SNOW ALL WASN'T LOST HOWEVER MR MITCHELL AND HIS FRIENDS SPENT THE BALMY WEEKEND RIDING GATLINBURG'S ALPINE SLIDE A SLED ON WHEELS THAT SNAKES DOWN AN 1800FOOT CONCRETE GULLY IT WAS PRETTY MUCH FUN HE SAYS BUT YOU DID SKIN YOUR KNUCKLES IF YOU WEREN'T CAREFUL NOT ALL SOUTHERN SKIING IS SO BLEAK THE SKI AREA AT NORTH CAROLINA'S SUGAR MOUNTAIN FOR INSTANCE HAS A 1200FOOT VERTICAL DROP WHICH IS RESPECTABLE FOR THE EAST THE MORE SCRUPULOUS RESORT MANAGERS TRY TO KEEP LIFT LINES UNDER 20 MINUTES AND AFTER SEVERAL WARM WINTERS A LONGRUNNING COLD SPELL THIS YEAR HAS KEPT MANY SOUTHERN SLOPES MUCH WHITER ALBEIT WITH MANMADE SNOW THAN USUAL STILL NO ONE IS GOING TO CONFUSE THE APPALACHIANS WITH THE ALPS AT SKY VALLEY WHERE A WEEKEND LIFT TICKET GOES FOR 18 THERE ARE NO JAGGED SNOWCAPPED PEAKS JUST ROUNDED BROWN HILLSIDES EVEN IN A GOOD YEAR THE SNOW IS SO SPOTTY THAT SKIERS HAVE TO DUCKWALK ON CARPET TO REACH THE CHAIRLIFT THERE'S NO NEED AS THERE IS IN ASPEN COLO FOR TRAIL MAPS WITH BOLD SLOPE NAMES SUCH AS PERRY'S PROWL AND SPAR GULCH WHEN SKIERS REACH THE TOP OF SKY VALLEY'S LIFT THEY HAVE TWO CHOICES EASIEST AND MOST DIFFICULT ON A RECENT SATURDAY HERE DIFFICULT WAS ALL THEY HAD A DRIVING GEORGIA RAIN FOLLOWED BY A COLD FRONT HAD TRANSFORMED THE TWO SLOPES INTO RIVERS OF ICE THIS IS ABSOLUTELY DANGEROUS SAID JB CORAM AN ATLANTA COMMODITIES BROKER PEERING UP AT A SLOPE LITTERED WITH FALLEN SKIERS I'VE SEEN ENOUGH PEOPLE ON THEIR BUTTS TO KNOW IT'S TIME TO TAKE MY BUTT HOME FOR RESORTS ON THE SOUTHERN SKI CIRCUIT ALTERNATE ACTIVITIES CAN MAKE THE DIFFERENCE BETWEEN A GOING CONCERN AND GOING UNDER CLOUDMONT SUPPLEMENTS ITS INCOME BY DOUBLING AS A DUDE RANCH SKY VALLEY WHOSE SLOPES SIT JUST BEYOND THE 10TH TEE OF A GOLF COURSE NOW OFFERS SKIANDTEE SPECIALS AND A SWISSSTYLE LODGE COMPLETE WITH APRESSKI OR APRESTEE AMENITIES LIKE FIRESIDE DINING GENE HEAD OWNER OF SKI SCALY RESORT NEVER HARBORED ANY DELUSIONS OF GRANDEUR HIS SMALL OPERATION RUN OUT OF A ROADSIDE BUILDING IN THE SOUTHWEST CORNER OF NORTH CAROLINA TRIES TO COMPENSATE FOR ITS SIZE A LEISURELY SKIER CAN REACH THE BOTTOM OF SCALY'S SLOPE IN 40 SECONDS WITH A HOMEY APPROACH TO CUSTOMER SERVICE MR HEAD WHO CARVED THE SCALY SKI SLOPE OUT OF HIS CABBAGE FARM 13 YEARS AGO TRIES TO GET TO KNOW EVERY SKIER BY NAME FROM A SMALL CLUTTERED OFFICE WITH A PLATEGLASS WINDOW AND A MICROPHONE HOOKED TO THE PUBLICADDRESS SYSTEM MR HEAD WHO WEARS A COWBOY HAT PROVIDES A RUNNING COMMENTARY ON THE ACTION ONE MOMENT HE COMPLIMENTS A SKIER'S RED JACKET THE NEXT HE ALERTS HIS EMPLOYEES TO A SKIER CAREENING TOWARD A FENCE FOR HIS EFFORTS MR HEAD SAYS HE TAKES IN ABOUT 350000 IN A GOOD YEAR HE HAS ALSO EARNED A LOYAL FOLLOWING THIS IS PERFECT SAYS SHAUN KELLEY A 12YEAROLD SKIER FROM DAHLONEGA GA HE STOPS FOR A MOMENT AT THE PEAK OF SCALY'S SLOPE TO TAKE IN THE SCENERY WHICH INCLUDES A BP GAS STATION ACROSS THE HIGHWAY AND A RED BARN RIGHT NEXT TO THE BEGINNERS' SLOPE THE VIEW IS BREATHTAKING HE SAYS MOUNT MITCHELL IN NORTH CAROLINA IS THE HIGHEST PEAK IN THE SOUTHEAST IN A PAGEONE ARTICLE JAN 25 ABOUT SKIING IN THE REGION BEECH MOUNTAIN WAS INCORRECTLY IDENTIFIED AS THE TALLEST POINT RATHER BEECH MOUNTAIN IS THE HIGHEST SKI AREA IN THE SOUTHEAST 9402010178 940201 SMALL STOCK FOCUS TRANSPORTATION INTERESTSENSITIVE ISSUES PROPEL KEY INDICATORS TO RECORD LEVELS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE NASDAQ STOCK MARKET'S COMPOSITE INDEX TOPPED THE 800 LEVEL FOR THE FIRST TIME WHILE ANOTHER SMALLCOMPANY INDEX ALSO SET A RECORD THE NASDAQ INDEX JUMPED 394 POINTS OR 049 TO END AT 80047 ADVANCING ISSUES BEAT NASDAQ DECLINERS 1829 TO 1320 NASDAQ NATIONAL MARKET VOLUME FELL TO 277734800 SHARES FROM 299157800 ON FRIDAY TOTAL NASDAQ TURNOVER WAS AT 328913900 SHARES DOWN FROM 347488000 SHARES FRIDAY ACTION WAS SLOW INITIALLY BUT PICKED UP AS THE SESSION WORE ON THE RUSSELL 2000 INDEX ALSO HIT RECORD GROUND CLIMBING 149 POINTS OR 056 TO 26652 IT TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON NASDAQ AND THE MAJOR EXCHANGES RALLYING INTERESTRATE SENSITIVE ISSUES AND TRANSPORTATION STOCKS WERE RESPONSIBLE FOR MOST OF THE SMALLCAP GAINS EARNINGS NEWS CONTINUED TO BE A DRIVING FORCE AMONG FINANCIAL STOCKS NATIONAL CITY BANCORP MINNEAPOLIS ROSE 1 1/4 TO 15 1/4 BAY VIEW CAPITAL CORP SAN MATEO CALIF ADDED 7/8 TO 22 AND ANCHOR BANCORP WISCONSIN MADISON WIS CLIMBED 1/2 TO 24 1/4 IN THE TRANSPORTATION SECTOR HEARTLAND EXPRESS A CORALVILLE IOWA MOTOR CARRIER GAINED 1 1/4 TO 30 3/4 ARKANSAS BEST A FORT SMITH ARK PROVIDER OF MOTOR CARRIER OPERATIONS IMPROVED 3/4 TO 14 3/4 AND ARNOLD INDUSTRIES A LEBANON PA MOTOR VEHICLE TRANSPORTER INCHED UP 1/8 TO 20 3/8 BMC WEST BOISE IDAHO RALLIED 4 7/8 OR 17 TO 33 7/8 FOLLOWING IMPROVED FOURTHQUARTER EARNINGS LILLY INDUSTRIES OF INDIANAPOLIS ROSE 2 3/4 OR 13 TO 24 AFTER IT SAID FOURTHQUARTER EARNINGS IMPROVED TO 33 CENTS A SHARE FROM 26 CENTS A YEAR EARLIER LILLY ALSO RAISED ITS DIVIDEND TO 10 CENTS A SHARE FROM NINE CENTS HEART TECHNOLOGY REDMOND WASH ADDED 1 1/4 TO 23 THE COMPANY WHICH DEVELOPS DEVICES TO TREAT ARTHEROSCLEROSIS SAID IT HAD A FOURTHQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS RADIATION SYSTEMS INC A STERLING VA ANTENNA PRODUCTS CONCERN SURGED 4 1/8 OR 31 TO 17 5/8 BIG BOARDTRADED COMSAT CORP SAID IT HAS ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE RADIATION SYSTEMS JMC GROUP INC A SAN DIEGO MARKETER OF INSURANCE PRODUCTS AND MUTUAL FUNDS SLID 1 5/8 OR 18 TO 7 1/4 THE COMPANY SAID FOURTHQUARTER NET INCOME FROM CONTINUING OPERATIONS IS EXPECTED TO EXCEED 275000 OR FOUR CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS FROM CONTINUING OPERATIONS OF 1 MILLION OR 14 CENTS SHARES OF CLOSEDEND FUNDS INVESTING IN JAPAN MOVED HIGHER FOLLOWING A STRONG DAY ON THE TOKYO STOCK MARKET JAPAN OTC EQUITY FUND CLIMBED 2 TO 14 1/2 JAPAN EQUITY FUND ADDED 1 5/8 TO 17 7/8 AND SCUDDER NEW ASIA FUND ROSE 1 1/4 TO 27 3/8 ALL THREE ARE TRADED ON THE NEW YORK STOCK EXCHANGE VMX BOUNCED 13/16 HIGHER TO 5 ON NEWS IT SIGNED A DEFINITIVE AGREEMENT TO MERGE WITH OCTEL COMMUNICATIONS IN A STOCK SWAP VMX BASED IN SAN JOSE CALIF DESIGNS COMPUTER SYSTEMS AN INITIAL LONGTERM BUY RATING FROM SOUNDVIEW FINANCIAL GROUP INC LIFTED GENERAL DATACOMM INDUSTRIES MIDDLEBURY CONN 2 1/4 TO 14 ON THE BIG BOARD BUT TRIARC COS FELL 3 3/8 TO 20 7/8 AFTER OPPENHEIMER & CO ANALYST MICHAEL BUNYANER REDUCED HIS 1994 AND 1995 PERSHARE EARNINGS ESTIMATES HE SAID HIS ORIGINAL FORECAST WAS MADE WITH LITTLE INFORMATION AVAILABLE AS THE WEST PALM BEACH FLA COMPANY WAS SELLING OFF ASSETS AND CLEANING UP ITS BALANCE SHEET MR BUNYANER ADDED THAT HE THOUGHT THE MARKET OVERREACTED TO HIS ESTIMATE CUTS AND HE EXPECTS EARNINGS TO RISE 20 OR MORE A YEAR IN THE NEXT FOUR YEARS CLAUDIA E MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES INC SAID SHE IS A LITTLE CONCERNED ABOUT THE LOFTY LEVELS OF FINANCIALRELATED STOCKS I THINK BY AND LARGE WE'VE SEEN GOOD EARNINGS REPORTS TO CARRY THIS MARKET MS MOTT SAID BUT A FAIR NUMBER OF FINANCIAL EARNINGS HAVE BEEN DISAPPOINTING IF INVESTORS ARE GOING TO CONTINUE TO PLAY THE MOMENTUM SIDE FINANCIALS WILL FALL OUT OF FAVOR SHE SAID THE GROUP MAY CONTINUE TO PERFORM WELL BECAUSE RATES ARE STILL RELATIVELY LOW WILLIAM SULYA HEAD OF OVERTHECOUNTER TRADING AT AG EDWARDS & SONS SAID TRADING VOLUME TENDS TO BE RELATIVELY THIN ON SMALLER TRANSPORT STOCKS WHICH CAN PUSH THEIR STOCK PRICES AROUND EASILY ON LIMITED BUYING OR SELLING 9402010177 940201 LETTERS TO THE EDITOR JAPAN'S NOT UNFAIR MERELY MISUNDERSTOOD OVER THE PAST SEVERAL YEARS YOU HAVE PERSISTENTLY PORTRAYED ME AS AN ADVOCATE OF A TOUGH TRADE POLICY TOWARD JAPAN A COUNTRY THAT I AM SAID TO BELIEVE IS DIFFERENT UNFAIR AND UNCHANGING THE MOST RECENT EXAMPLE IS YOUR DEC 29 ARTICLE JAPAN ECONOMICALLY AND POLITICALLY AILING IS SINKING INTO GLOOM FOR THE RECORD I DO NOT BELIEVE NOR HAVE I EVER SAID THAT JAPAN IS UNFAIR I DO BELIEVE THAT JAPAN'S ECONOMIC PHILOSOPHY DIFFERS FUNDAMENTALLY FROM THAT OF THE US AND THAT ITS ECONOMY IS STRUCTURED AND RUN ON A SIGNIFICANTLY DIFFERENT BASIS THE WHOLE POINT OF EXPLAINING THESE DIFFERENCES IS TO DEMONSTRATE THAT US PROBLEMS WITH JAPAN DO NOT ARISE FROM UNFAIRNESS ON JAPAN'S PART BUT RATHER FROM MISUNDERSTANDING OF WHAT DRIVES JAPAN ON THE PART OF THE US I HAVE NEVER SAID THAT JAPAN WILL NOT OR CANNOT CHANGE INDEED I HAVE SAID THAT JAPAN HAS CHANGED MORE OVER THE PAST 40 YEARS THAN PERHAPS ANY OTHER COUNTRY THE PROBLEM HERE IS THAT WHEN MOST COMMENTATORS TALK ABOUT A CHANGING JAPAN THEY IMPLICITLY ASSUME THAT JAPAN WILL CHANGE TO BECOME MORE LIKE THE US THAT MAY INDEED HAPPEN BUT I BELIEVE IT IS EQUALLY POSSIBLE FOR JAPAN TO CHANGE WITHOUT BECOMING MORE LIKE THE US I DO NOT ADVOCATE A TOUGH TRADE POLICY TOWARD JAPAN TOUGH IMPLIES THREATS AND RETALIATION I AM ON RECORD IN PUBLIC TESTIMONY AS BEING AGAINST SUCH THREATS AND RETALIATION AND I HAVE TESTIFIED AGAINST THE USE OF UNFAIR TRADE LAWS SUCH AS SUPER 301 I DO ADVOCATE AN INTELLIGENT TRADE POLICY TOWARD JAPAN THAT RECOGNIZES THAT NEGOTIATING WITH JAPAN OVER PHILOSOPHICAL CONCEPTS SUCH AS OPENNESS AND FAIRNESS MAY BE UNPRODUCTIVE BECAUSE OF VASTLY DIFFERENT UNDERSTANDINGS OF THOSE CONCEPTS ON BOTH SIDES NEGOTIATION OF CONCRETE AND MEASURABLE OBJECTIVES EASILY UNDERSTOOD BY BOTH COUNTRIES SHOULD OBVIATE THE NEED FOR TOUGHNESS 9402010176 940201 POLITICS & POLICY AS GAMBLING GROWS ACROSS THE US THE INDUSTRY SEEKS TO HIT JACKPOT ON NATIONAL POLITICAL SCENE BY RICK WARTZMAN AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL IT WAS AN INFLUENTIAL GROUP OF CASINOINDUSTRY EXECUTIVES THAT STEPHEN WYNN THE CHAIRMAN OF MIRAGE RESORTS INC ASSEMBLED FOR A BREAKFAST MEETING AT MIRAGE'S EXCLUSIVE SHADOW CREEK GOLF CLUB IN NORTH LAS VEGAS THE EXECUTIVES HAD BEEN SUMMONED TO THE MEETING THIS PAST FALL SEVERAL SAY TO DISCUSS IMPORTANT INDUSTRY ISSUES BUT MR WYNN A LONGTIME REGISTERED DEMOCRAT AND ERSTWHILE BILL CLINTON SUPPORTER HAD ANOTHER AGENDA IN MIND FLANKED BY REPUBLICAN NATIONAL COMMITTEE CHAIRMAN HALEY BARBOUR AND JOHN MORAN CHAIRMAN OF THE PARTY'S FINANCE COMMITTEE MR WYNN EXPLAINED THAT HE HAD BECOME DISENCHANTED WITH THE CLINTON ADMINISTRATION'S ECONOMIC POLICIES AND WOULD GIVE A QUARTER OF A MILLION DOLLARS TO THE GOP HE WANTED THE OTHER EXECUTIVES TO ANTE UP TOO WILLIAM BENNETT THE CHIEF EXECUTIVE OF CIRCUS CIRCUS ENTERPRISES INC WAS FUMING I SAID I'LL GIVE A QUARTER TOO IF I CAN GET OUT OF HERE RIGHT NOW' MR BENNETT RECALLS LATER HE WROTE A CHECK FOR 25 CENTS AND SENT IT OVER TO MR WYNN'S OFFICE MR BENNETT SAYS IT CAME BACK STAMPED INSUFFICIENT FUNDS AS GAMBLING FLOURISHES ACROSS THE COUNTRY CASINO INTERESTS ARE INCREASINGLY SEEKING TO DEAL THEMSELVES INTO THE NATIONAL POLITICAL SCENE AT PRESENT RIVERBOAT CASINOS LAS VEGASSTYLE CASINOS INDIAN GAMBLING OR VIDEO GAMING IS EITHER OPERATING OR IS AUTHORIZED IN 25 STATES ACCORDING TO THE NATIONAL CONFERENCE OF STATE LEGISLATURES AMERICANS SPEND 30 BILLION A YEAR ON LEGAL GAMBLING AND WITH ISSUES RANGING FROM COMPETITION BY INDIAN TRIBES TO POTENTIALLY TIGHTER FEDERAL CURRENCY REPORTING RESTRICTIONS MANY INDUSTRY INSIDERS AGREE THAT THEY NEED A POLITICAL PRESENCE BUT NO ONE CAN QUITE DECIDE JUST HOW THAT SHOULD BE DONE OR WHO SHOULD LEAD THE WAY CASINO EXECUTIVES AT THE SHADOW CREEK MEETING DISCUSSED FORMING A WASHINGTON TRADE ASSOCIATION JUST AS THEIR FRIENDS IN THE MOVIE BUSINESS HAVE THE NEVADA RESORT ASSOCIATION HAS EMPLOYED SOME HEAVYWEIGHT LOBBYING MUSCLE OVER THE YEARS INCLUDING THE DUBERSTEIN GROUP AND AKIN GUMP STRAUSS HAUER & FELD BUT IT DOESN'T REPRESENT ALL GAMBLING COMPANIES OR EVEN ALL OF THE MAJOR LAS VEGAS RESORTS AMONG OTHER PLAYERS THE LOBBYING FIRM BLACK MANAFORT STONE & KELLY WHICH FOR SEVERAL YEARS HAS REPRESENTED THE TRUMP ORGANIZATION AND THE CASINO ASSOCIATION OF NEW JERSEY JUST LAST SPRING TOOK ON MGM GRAND INC AS A CLIENT MEANWHILE INDIAN TRIBES WITH AN INTEREST IN GAMBLING LEGISLATION ARE ALSO USING WELLCONNECTED WASHINGTON LOBBYISTS THE SEMINOLE TRIBE OF FLORIDA RECENTLY HIRED THE JEFFERSON GROUP THE MORONGO BAND OF MISSION INDIANS OF CALIFORNIA HAS RETAINED WINSTON & STRAWN AND THE MASHANTUCKET PEQUOT TRIBE OF CONNECTICUT HAS SIGNED ON PATTON BOGGS & BLOW BEYOND REPRESENTATION OF COURSE THERE'S MONEY THROUGH THE 199192 ELECTION CYCLE AND THE FIRST SIX MONTHS OF 1993 POLITICAL ACTION COMMITTEES FROM THE GAMBLING INDUSTRY GAVE 194108 TO DEMOCRATIC CANDIDATES AND 63837 TO REPUBLICANS ACCORDING TO AN ANALYSIS BY THE NONPARTISAN CENTER FOR RESPONSIVE POLITICS BEYOND THAT THE DEMOCRATS RECEIVED 165554 IN UNRESTRICTED SOFT MONEY CONTRIBUTIONS FROM THE INDUSTRY DURING THE 199192 PERIOD WHILE REPUBLICANS TOOK IN 160543 CIRCUS CIRCUS ALONE GAVE 54149 TO THE DEMOCRATS AND 35000 TO THE REPUBLICANS EVEN THE MASHANTUCKET PEQUOT TRIBE HAS GOTTEN INTO THE ACT SENDING 100000 TO THE DEMOCRATS IN 1992 BUT THOSE DOLLARS PALE IN COMPARISON WITH THE SUMS NOW ROLLING IN FOR THE GOP AFTER THE SHADOW CREEK MEETING IN OCTOBER ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS MR WYNN MADE GOOD ON HIS QUARTERMILLIONDOLLAR PLEDGE TO THE RNC MIRAGE RESORTS' GOLDEN NUGGET CASINO GAVE 230000 MR WYNN CHIPPED IN AN ADDITIONAL 20000 PERSONALLY OTHER SHADOW CREEK PARTICIPANTS ALSO GAVE GENEROUSLY FRANK J FERTITTA JR RETIRED CHAIRMAN OF PALACE STATION HOTELCASINO DELIVERED A TOTAL OF 250000 TO THE RNC IN NOVEMBER MARNELL CORRAO ASSOCIATES A LAS VEGAS CONSTRUCTION FIRM THAT SERVES THE CASINO INDUSTRY GAVE THE RNC 80000 ITS PRESIDENT ANTHONY MARNELL II WHO ALSO SERVES AS CHAIRMAN OF RIO HOTEL & CASINO INC CAME UP WITH 20000 HIMSELF BEFORE ALL IS SAID AND DONE I EXPECT THE PLEDGES WILL TOTAL MORE THAN A MILLION DOLLARS SAYS TOM WIESNER THE REPUBLICAN NATIONAL COMMITTEEMAN FROM NEVADA AND THE OWNER OF BIG DOGS HOSPITALITY GROUP A CHAIN OF RESTAURANTCASINOS SOME OF THE MONEY HAS ALREADY FOUND ITS WAY BACK TO NEVADA WHERE DEMOCRATIC SEN RICHARD BRYAN IS UP FOR REELECTION THIS YEAR IN LATE NOVEMBER THE RNC TRANSFERRED 50000 TO THE NEVADA REPUBLICAN PARTY FEC RECORDS INDICATE I THINK THEY PROBABLY SENT IT TO US AS A THANKYOU SAYS BRIAN MCKAY THE STATE REPUBLICAN PARTY CHAIRMAN WHO IS ALSO A REGISTERED LOBBYIST FOR CIRCUS CIRCUS MR WYNN SAYS THAT DESPITE THE WAY SHADOW CREEK WAS BILLED IT WAS NEVER MEANT TO BE AN INDUSTRY FORUM AND HE AND MESSRS FERTITTA AND MARNELL SAY THEIR OWN CONTRIBUTIONS WERE SPURRED BY PERSONAL POLITICAL BELIEFS NOT CASINORELATED MATTERS THIS WAS JUST A GROUP OF GUYS WHO HAVE COMMON CONCERNS MR WYNN SAYS CHIEF AMONG HIS OWN CONCERNS THESE DAYS IS PRESIDENT CLINTON'S TAX INCREASE ON THE WEALTHIEST AMERICANS I RESENT THE IDEA THAT THE CLINTON PEOPLE HAVE RESORTED TO POPULIST RHETORIC SAYS MR WYNN WHOSE BASE SALARY IS 25 MILLION AND WHO IN 1992 CASHED IN STOCK OPTIONS FOR A PRETAX PROFIT OF 304 MILLION MR WYNN ALSO IS UPSET ABOUT THE CLINTON PROVISION CURBING COMPANIES' ABILITY TO DEDUCT EXECUTIVE PAY ABOVE 1 MILLION AND HE ATTACKS THE CLINTON HEALTHCARE PLAN AS MISGUIDED GIVEN ALL THE GRIPING DEMOCRATIC SEN HARRY REID OF NEVADA IS CONVINCED THAT THE MONEY POURING INTO THE RNC HAS NOTHING TO DO WITH THE CASINO INDUSTRY TRYING TO ESTABLISH ITSELF POLITICALLY I'VE HEARD FROM SOME PEOPLE IN THIS GROUP THAT THEY DIDN'T WANT TO PAY MORE TAXES PERIOD SAYS THE SENATOR WHO ONCE SERVED AS CHAIRMAN OF THE NEVADA GAMING COMMISSION BUT CONSIDERING THE GUEST LIST AT THE HIGHPOWERED SHADOW CREEK CONFAB INCLUDING THE TOP EXECUTIVES OF HILTON HOTELS CORP CAESARS WORLD INC PROMUS COS AND INTERNATIONAL GAME TECHNOLOGIES SOME CASINO EXECUTIVES FEAR THAT THE RNC CONTRIBUTIONS WILL BE SEEN AS A HEAVYHANDED ATTEMPT BY THE INDUSTRY TO PLAY PARTISAN POLITICS ONCE IT BECAME EVIDENT THAT THE SHADOW CREEK GATHERING INCLUDED FUNDRAISING WE BECAME QUITE UNCOMFORTABLE AND HAVE NOT RESPONDED SAYS RAYMOND C AVANSINO JR HILTON'S PRESIDENT SEVERAL OTHER ATTENDEES SAY THEY SHARE THOSE SENTIMENTS FOR HIS PART MR WYNN SAYS HE NEVER EVEN MEANT FOR THE SHADOW CREEK BREAKFAST TO BE A FUNDRAISER HE SAYS HE INVITED THE INDUSTRY'S LEADERS TO MEET MR BARBOUR PARTLY AS A FAVOR TO MR MORAN THE FINANCE COMMITTEE CHAIRMAN WHO IS A CLOSE FRIEND THE 250000 PITCH MR WYNN SAYS AROSE EXTEMPORANEOUSLY BUT OTHERS THINK THAT WITH THE INDUSTRY GROWING SO RAPIDLY THERE'S NOTHING WRONG WITH LAYING THAT KIND OF MONEY DOWN THIS WAS NO DIFFERENT THAN THE PEOPLE IN THE MOTION PICTURE INDUSTRY OR THE AUTOMOBILE INDUSTRY GETTING TOGETHER SAYS MR WIESNER THE GOP COMMITTEEMAN THE GAMBLING INDUSTRY OUGHT TO HAVE A NATIONAL PRESENCE 9402010175 940201 INTERNATIONAL SHANGHAI IS MOVING TO REESTABLISH BUND AREA AS EAST ASIA FINANCIAL HUB BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA THE CITY GOVERNMENT MAY BE CLOSE TO REACHING ITS FIRST DEAL INVOLVING THE SALE OF HISTORIC BANK BUILDINGS ALONG SHANGHAI'S BUND THE PREWORLD WAR II FINANCIAL CENTER HONGKONG & SHANGHAI BANKING CORP AND THE LOCAL PUDONG DEVELOPMENT BANK ARE RIVAL BIDDERS FOR WHAT WAS ONCE HONGKONG BANK'S LANDMARK COLONIAL HEADQUARTERS ON THE BUND ACCORDING TO LOCAL OFFICIALS AND FOREIGN BANKERS THE BUILDING HAS BEEN HOME TO SHANGHAI'S CITY GOVERNMENT SINCE THE COMMUNISTS TOOK OVER THE NATION IN 1949 EXECUTIVES OF BOTH BANKS DECLINED TO COMMENT ON SPECIFICS HOWEVER PEOPLE CLOSE TO THE NEGOTIATIONS SAID THE CITY GOVERNMENT HAS REDUCED ITS OFFERING PRICE TO HONGKONG BANK FOR THE SYMBOLIC BUT NOW RUNDOWN STRUCTURE TO AROUND 50 MILLION FROM ABOUT 170 MILLION IN THE EARLY 1990S THAT'S STILL A PRINCELY SUM THAT EASILY WOULD MAKE THE TRANSACTION THE MOST COSTLY FOR A SINGLE BUILDING IN CHINA BUILDINGS ALONG THE BUND WHOSE STATELY GRANITE EXTERIORS REMAIN LARGELY UNCHANGED AFTER 45 YEARS OF COMMUNISM ARE PERHAPS THE MOST EVOCATIVE SYMBOL OF PREWORLD WAR II COLONIALISM IN CHINA FROM THE LATE 19TH CENTURY UNTIL THE COMMUNISTS TOOK POWER SHANGHAI SERVED AS THE ASIAN HEADQUARTERS OF MANY INTERNATIONAL BANKS WHICH PROFITED IMMENSELY BY SERVING BUSINESSMEN WHO TRADED OPIUM COTTON AND OTHER GOODS FROM THEIR FOREIGN CONCESSIONS IN THE CITY CHINESE OFFICIALS NEVER LOST SIGHT OF THAT SYMBOLISM MAKING THE BUND THE HOME OF CITY GOVERNMENT ORGANS AND CHINESE BANKS BUT AS THE CITY NOW CONTEMPLATES WAYS OF RESTORING ITS STATUS AS AN EAST ASIA FINANCIAL CENTER IT HAS NOTIFIED CURRENT RESIDENTS OF BUILDINGS ALONG THE STRIP THAT THEY SHOULD BE PREPARED TO RELOCATE TO MAKE WAY FOR THE RETURN OF ONETIME IMPERIALISTS PUDONG DEVELOPMENT BANK IS CONSIDERED A LONG SHOT AT GETTING THE PROPERTY AS GOVERNMENT OFFICIALS IN SHANGHAI HINTED THAT THEY WOULD HAVE TO CHARGE ANY LOCAL BANK CONSIDERABLY LESS THAN WHAT THEY WOULD DEMAND FROM A FOREIGN BANK MAKING SUCH A DEAL LESS ATTRACTIVE FROM THE SELLER'S POINT OF VIEW OTHER FOREIGN BANKS AND FINANCIAL INSTITUTIONS INCLUDING AMERICAN INTERNATIONAL GROUP AND BANQUE INDOSUEZ A FRENCH CONCERN HAVE HELD SERIOUS NEGOTIATIONS WITH CITY OFFICIALS ON THE PURCHASE OF THEIR OLD SHANGHAI HEADQUARTERS EXECUTIVES OF BOTH COMPANIES CONFIRMED BUT SHANGHAI CITY GOVERNMENT OFFICIALS AND FOREIGN BANKERS ARE PAYING PARTICULARLY CLOSE ATTENTION TO HONGKONG BANK'S NEGOTIATIONS IF SUCH A HIGHPROFILE DEAL WERE COMPLETED THEY SAID OTHER BANKS MIGHT CONSIDER THE CITY'S EXORBITANT ASKING PRICES IN A MORE FAVORABLE LIGHT ONE PERSON CLOSE TO THE GOVERNMENT SAID THERE ISN'T EVEN AN INFORMAL AGREEMENT WITH HONGKONG BANK BUT THAT HE BELIEVED NEGOTIATIONS WOULD BE SUCCESSFULLY CONCLUDED BY YEAR END HONGKONG BANK OFFICIALS SAID THEY ARE ATTRACTED TO THE STRUCTURE WHICH DATES TO 1923 FOR NOSTALGIC REASONS BUT SKEPTICAL ABOUT ITS USEFULNESS FOR MODERN BANKING WE'RE QUITE INTERESTED IN THE BUILDING ITSELF BUT SERIOUS PRACTICAL PROBLEMS ARE INHERENT IN PURCHASING IT BACK FROM THE GOVERNMENT SAID BOB SHERBIN A HONGKONG BANK SPOKESMAN INDEED FOR FOREIGN BANKS THE PRICE OF READMISSION IS HIGH PARTICULARLY WHEN THEY CONSIDER THAT CHINA CONFISCATED THE PROPERTIES FROM THEM IN THE FIRST PLACE IN 1990 VICE PREMIER ZHU RONGJI THEN SHANGHAI MAYOR FIRST ALLOWED THE POSSIBILITY OF THE SALE OF BUND BUILDINGS BUT DISAGREEMENT AMONG TOPLEVEL CHINESE OVER THE APPROPRIATENESS OF ANY SALE AND UNREALISTIC QUOTATIONS HAVE SO FAR PREVENTED ANY DEAL IN DECEMBER THE CITY ESTABLISHED A CORPORATION WITH THE EXPLICIT PURPOSE OF REESTABLISHING THE BUND AS THE WALL STREET' OF CHINA THE CORPORATION WILL OVERSEE THE SALE OF BUILDINGS AND THE RESETTLEMENT OF GOVERNMENT UNITS AND COMPANIES CURRENTLY USING THE PROPERTIES ACCORDING TO WU JIALU THE OFFICIAL APPOINTED AS DIRECTOR OF THE CORPORATION SHANGHAI'S STOCK MARKET THE NEW NATIONAL CURRENCYSWAP CENTER MOST LOCAL BROKERAGE HOUSES AND THE SHANGHAIBASED BANK OF COMMUNICATIONS ALREADY HAVE ESTABLISHED OFFICES THERE CITY GOVERNMENT OFFICIALS HAVE ALSO BEGUN TRANSFERRING THEIR OPERATIONS TO THE NEW GOVERNMENT CENTER NEAR SHANGHAI'S PEOPLE'S PARK MR WU SAYS 20 OF THE 113 BANKS THAT ONCE HAD OFFICES ON THE BUND HAVE SOUGHT AT LEAST INFORMAL INFORMATION ABOUT REPURCHASES AND WE'VE ONLY JUST STARTED HE ADDS AMONG THE BANKS AND FINANCIAL COMPANIES THAT HAVE MADE INQUIRIES ARE JARDINE FLEMING STANDARD CHARTERED BANK CITIBANK MORGAN STANLEY GROUP INC CREDIT LYONNAIS SA AND BANK OF EAST ASIA THOSE COMPANIES SAID THEY HAVE HAD ONLY PRELIMINARY DISCUSSIONS WITH SHANGHAI OFFICIALS NOW THAT THE CHINESE SEEM SERIOUS ABOUT RENOVATING THE BUND WE ARE A LITTLE MORE INTERESTED SAID DAVID KIANG CHIEF EXECUTIVE FOR CHINA AND MACAO OF HONG KONG'S STANDARD CHARTERED BANK WE WOULD LOVE TO GET IT BACK FOR SENTIMENTAL REASONS THERE MIGHT ALSO BE ECONOMIC REASONS AS WELL IF THE BUND REALLY BECOMES AN IMPORTANT FINANCIAL CENTER BUT MR KIANG LIKE MOST FOREIGN BANK EXECUTIVES EMPHASIZED THAT THE INTERIORS OF THE OLD BANK BUILDINGS HAVE DETERIORATED TO SUCH A LOW STATE THAT THE COST OF RENOVATIONS ALONE MIGHT EXCEED THE COST OF BUILDING A NEW HEADQUARTERS ELSEWHERE 9402010174 940201 INTERNATIONAL JAPAN'S HOUSING STARTS ADVANCE TOKYO JAPAN'S HOUSING STARTS IN DECEMBER ROSE 49 FROM THE YEAREARLIER MONTH TO 125850 EXTENDING THE STREAK OF YEARTOYEAR GAINS TO 19 MONTHS THE CONSTRUCTION MINISTRY REPORTED FOR ALL OF 1993 HOUSING STARTS WERE UP 59 AT 149 MILLION 9402010173 940201 INTERNATIONAL UNPROFITABLE OLYMPICS IN FRENCH ALPS STILL PAY DIVIDENDS FOR MUCH OF REGION BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRIDESLESBAINS FRANCE WHEN THE FRENCH ALPS WERE CHOSEN AS THE SITE OF THE 1992 WINTER OLYMPICS ORGANIZERS PROMISED THAT THE GAMES WOULD PAY FOR THEMSELVES AND GIVE A LONGTERM BOOST TO THE LOCAL ECONOMY THEY WERE ONLY HALF RIGHT AFTER TWO YEARS MOST OF THE RESORTS IN THE SAVOIE AREA THAT HOSTED EVENTS WITH ONE NOTABLE EXCEPTION ARE BREATHING A SIGH OF RELIEF TOURISM THE LIFEBLOOD OF THE REGION IS RISING AND IS EXPECTED TO CONTINUE TO DO SO DESPITE BAD PUBLICITIY ABOUT AVALANCHES WHICH THIS PAST WEEKEND KILLED SIX PEOPLE AND THE HIGHER RECEIPTS ARE HELPING LOCAL AUTHORITIES TO RECOUP THE INVESTMENTS THEY MADE TO UPGRADE THEIR RESORTS TO OLYMPIC STANDARDS THE GAMES THEMSELVES DEFIED EXPECTATIONS BY LOSING MONEY LARGELY BECAUSE OF BIG COST OVERRUNS ON A BOBSLED TRACK AT LA PLAGNE AND SKI JUMPS AT COURCHEVEL BUT LOCAL OFFICIALS SAY THE DEFICIT OF 280 MILLION FRENCH FRANCS 476 MILLION OUT OF SPENDING OF 42 BILLION FRANCS IS A MODEST PRICE TO PAY FOR THE GOODWILL AND INTERNATIONAL PUBLICITY THE OLYMPICS GENERATED MOREOVER BY PACKING 10 TO 15 YEARS OF CAPITAL INVESTMENT INTO JUST FOUR YEARS BEFORE THE GAMES MANY RESORTS BELIEVE THEY ARE NOW WELL PLACED TO COMPETE MORE EFFECTIVELY WITH RIVALS IN THE AUSTRIAN AND SWISS ALPS I DON'T SEE ANYTHING NEGATIVE FROM THE GAMES THE FACT THAT WE ARE A LITTLE INDEBTED ISN'T BAD GIVEN WHAT WE WERE ABLE TO DO WITH THE MONEY SAYS MICHEL GIRAUDY THE TOURISM DIRECTOR OF VAL D'ISERE WHERE THE MEN'S DOWNHILL RACES WERE STAGED INDEED DESPITE RECESSION IN EUROPE BUSINESS IN VAL D'ISERE AND NEARBY RESORTS ROSE AS MUCH AS 20 LAST YEAR WITH A MARKED INCREASE IN VISITORS FROM THE US AND JAPAN ALTHOUGH IT'S STILL EARLY THE CRUCIAL WINTER SEASON THIS YEAR IS OFF TO A STRONG START TOO A BIG FACTOR IS NEW ROADS AND A HIGHSPEED RAIL LINE IN THE REGION THAT THE FRENCH GOVERNMENT FUNDED AS PART OF ITS CONTRIBUTION TO THE GAMES THEY HAVE MADE ACCESS TO THE SOMETIMES REMOTE MOUNTAIN VILLAGES MUCH EASIER JUST AS IMPORTANT BANKERS AND LOCAL OFFICIALS SAY WAS THE FINANCIAL PRUDENCE SHOWN BY THE RESORTS THEMSELVES MOST OF WHICH WERE CAREFUL NOT TO OVERREACH WHEN ADDING MOUNTAINSIDE EQUIPMENT AND TOURIST ACCOMMODATIONS THE ONE EXCEPTION IS THE TINY VILLAGE OF BRIDESLESBAINS POPULATION 606 WHOSE CURRENT WOES PROVIDE A SOBER LESSON TO ANY WOULDBE HOSTS OF OLYMPIC EVENTS ONLY THOSE WHO HAD FANTASTIC DREAMS ARE NOW FINDING THAT THE AWAKENING IS BRUTAL SAYS SOPHIE GUILLAUD AN OFFICIAL AT THE CHAMBER OF COMMERCE IN CHAMBERY THE SAVOIE'S BIGGEST TOWN BRIDESLESBAINS WAS THE SITE OF THE OLYMPIC VILLAGE NOT CONTENT WITH JUST SPRUCING ITSELF UP FOR THE OCCASION THE RUNDOWN SPA EMBARKED ON A 200 MILLION FRANC INVESTMENT PROGRAM THAT ITS MAYOR HOPED WOULD PROPEL IT INTO A BRAVE NEW ERA OF PROSPERITY BESIDES HELPING TO FINANCE A NEW CABLE CAR TO MERIBEL A RESORT FURTHER UP THE MOUNTAINSIDE WHERE THE WOMEN'S SKI RACES WERE HELD THE VILLAGE BUILT A HUGE PARKING FACILITY REBUILT ITS CASINO TENNIS COURTS AND TOWN HALL AND RENOVATED BOTH THE SPA FACILITIES AND THE GRAND HOTEL NEXT TO THEM THE NUMBER OF TOURIST BEDS IN THE VILLAGE WAS INCREASED 62 TO 4000 BUT LESS THAN HALF THE VILLAGE'S EXPENSES WERE REIMBURSED BY THE FRENCH OLYMPIC ORGANIZERS AND BY MERIBEL IN ITS CONTRIBUTION TO THE CABLE CAR AFTER PAYING WHAT IT COULD FROM ITS OWN MEAGER RESOURCES BRIDESLESBAINS NOW HAS DEBTS OF ABOUT 50 MILLION FRANCS AND AT LEAST ONE COSTLY WHITE ELEPHANT ON ITS HANDS AN OLYMPICSIZE GYMNASIUM COMPLETE WITH ELECTRONIC SCOREBOARD THE GYM'S MAIN USE THESE DAYS IS AS A LUNCH CLUB FOR THE MAINLY ELDERLY POPULATION MAYOR JEANFRANCOIS CHEDAL WHO IS ALSO A SKI INSTRUCTOR INSISTS I DON'T HAVE ANY REGRETS BUT CONTRACTORS THAT ARE STILL OWED MONEY FOR THEIR WORK ARE LIVID AND BANKS HAVE EFFECTIVELY BOYCOTTED THE VILLAGE MR CHEDAL MADE THINGS WORSE FOR HIMSELF BY NOT SEEKING LOANS UNTIL AFTER WORK HAD STARTED ALL THE BANKS HE THEN APPROACHED REFUSED TO GIVE CREDIT SAYING THE RENOVATION PROGRAM WAS TOO AMBITIOUS ANY COMMUNITY THAT ACTS LIKE THAT RUINS ITS REPUTATION SAYS JACQUES GUERBER A BOARD MEMBER OF CREDIT LOCAL DE FRANCE A RECENTLY PRIVATIZED FRENCH BANK THAT SPECIALIZES IN FINANCING LOCAL AUTHORITIES WHILE IT HELPED TO FUND MANY OTHER OLYMPICRELATED PROJECTS IN THE REGION CREDIT LOCAL HAS SO FAR STEERED CLEAR OF BRIDESLESBAINS MR GUERBER SAYS HOWEVER THAT THE BANK MAY BE READY TO HELP FIND A CREDIBLE SOLUTION TO THE PROBLEMS TWO OTHER VILLAGES PRALOGNAN AND LES SAISIES INCURRED OLYMPICRELATED COSTS THEY COULDN'T HANDLE BUT THEY HAVE MANAGED TO RESCHEDULE THEIR DEBTS AND ALL THE RESORTS HAVE HAD TO DIG DEEP INTO THEIR POCKETS TO FINANCE THE GAMES RAISING LOCAL TAXES AND SLOWING MUNICIPAL INVESTMENT TO A TRICKLE FOR THE IMMEDIATE FUTURE BUT BANKERS AND LOCAL OFFICIALS SAY THE INCREASED FINANCIAL BURDEN WAS EXPECTED AND EXCEPT FOR BRIDESLESBAIN EASILY MANAGED THE SAVOIE REGIONAL AUTHORITIES HAD EVEN SET ASIDE RESERVES IN CASE THE GAMES MADE A LOSS AND CONSEQUENTLY ABSORBED THEIR SHARE OF THE DEFICIT WITHOUT DIFFICULTY THE FRENCH GOVERNMENT COVERED 75 OF THE SHORTFALL IN THE IMMEDIATE AFTERMATH OF THE GAMES TIMES HAVE GROWN TOUGHER FOR SOME THE HEAVY CONSTRUCTION THAT WENT ON BEFORE THE GAMES SPARKED A BOOM THAT CREATED 14000 JOBS BETWEEN 1985 AND 1990 AND ENABLED THE REGION TO WARD OFF THE RECESSION STALKING THE REST OF FRANCE ONCE THE GAMES WERE OVER HOWEVER THE SLUMP CAME ALL THE HARDER BUT MICHEL BARNIER A SAVOIE POLITICIAN WHO PLAYED A CENTRAL ROLE IN ORGANIZING THE OLYMPICS HAS SOARED UP THE CAREER LADDER HE IS CURRENTLY ENVIRONMENT MINISTER IN THE NATIONAL GOVERNMENT AND FOR MR GIRAUDY VAL D'ISERE'S TOURISM DIRECTOR THE LESSON OF THE OLYMPICS IS CLEAR WE ARE RICHER AND HAPPIER THAN WE REALIZE HE SAYS 9402010172 940201 INTERNATIONAL SPANISH MERCHANDISE TRADE MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 31 TO 250 TRILLION PESETAS 177 BILLION IN 1993 FROM 360 TRILLION PESETAS IN 1992 THE FINANCE MINISTRY SAID THE TRADE DEFICIT NARROWED 12 TO 22180 BILLION PESETAS IN DECEMBER FROM A YEAR EARLIER THE MINISTRY SAID 9402010171 940201 INTERNATIONAL GERMAN MACHINE INDUSTRY ORDERS FRANKFURT INCOMING ORDERS IN GERMANY'S MACHINE INDUSTRY GREW A REAL 1 IN DECEMBER FROM A YEAR AGO ACCORDING TO THE VDMA INDUSTRY GROUP ALTHOUGH DOMESTIC ORDERS WERE 14 BELOW THE PREVIOUS YEAR'S LEVEL FOREIGN ORDERS ROSE 19 FROM A YEAR AGO IT SAID FOR 1993 MACHINE INDUSTRY ORDERS FELL A REAL 8 FROM 1992 DOMESTIC ORDERS FELL 15 WHILE FOREIGN ORDERS ROSE 1 9402010170 940201 NAVISTAR INTERNATIONAL CORP SHIFT CHICAGO NAVISTAR INTERNATIONAL CORP SAID IT WILL ADD A SECOND SHIFT OF 300 WORKERS THIS MONTH AT ITS CHATHAM ONTARIO PLANT WHICH MAKES HEAVY TRUCKS NAVISTAR SAID THE MOVE WILL INCREASE TRUCK PRODUCTION AT THE PLANT 30 THE PLANT NOW HAS ABOUT 1500 EMPLOYEES NAVISTAR SAID IT SOLD 35100 HEAVY TRUCKS IN NORTH AMERICA IN THE FISCAL YEAR ENDED OCT 31 UP 288 FROM 1992 9402010169 940201 REGULATORY CHOKEHOLD PARTIAL DECONTROL OF BABY BELLS RINGS HOLLOW BY THOMAS GALE MOORE THIS SPRING THE HOUSE WILL CONSIDER TWO COMPLEMENTARY BILLS ON THE NOW FAMOUS INFORMATION SUPERHIGHWAY THE ANTITRUST REFORM ACT AND THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT THE BILLS ARE AIMED AT LIFTING MOST OF THE LIMITATIONS ON LOCAL TELEPHONE AND CABLE COMPANIES ASPIRING TO COMPETE IN MULTIMEDIA SERVICES THE 1984 CONSENT AGREEMENT THAT BROKE UP AT&T PROHIBITED LOCAL TELEPHONE OPERATING COMPANIES FROM ENTERING THE LONGDISTANCE MARKET FROM MARKETING THEIR OWN INFORMATION SERVICES AND FROM MAKING TELEPHONE EQUIPMENT TO A DYEDINTHEWOOL FREEMARKETER SUCH AS MYSELF THESE RESTRAINTS APPEAR TO SUPPRESS COMPETITION AND BE WRONGHEADED YET THE PUBLIC AND CONGRESS SHOULD CONSIDER THE RATIONALE BEHIND THE ORIGINAL ANTITRUST AGREEMENT CAREFULLY BEFORE LIFTING THESE BANS THE LOCAL PHONE COMPANIES THE BABY BELLS ARE REGULATED MONOPOLIES AS SUCH THEY MUST JUSTIFY THEIR RATES TO A STATE PUBLIC UTILITIES COMMISSION A REQUIREMENT THAT THE ADMINISTRATION PLANS TO MAINTAIN LAW AND ECONOMICS REQUIRE THAT THESE AUTHORITIES GRANT TARIFFS HIGH ENOUGH FOR THE FIRMS TO EARN PROFITS IF A COMMISSION REFUSES TO APPROVE CHARGES THAT WILL COVER COSTS AND ALLOW A MODEST PROFIT THE UTILITY EVENTUALLY WILL FAIL AND EXIT THE BUSINESS NEEDLESS TO SAY THAT WOULD NOT BENEFIT THE TELEPHONE COMPANIES' CUSTOMERS NOR WOULD THE COURTS COUNTENANCE A COMMISSION'S COMMITTING SUCH FOLLY ARRIVING AT AN APPROPRIATE RATE IS NEITHER EASY NOR MECHANICAL THE PHONE COMPANY MUST EARN ENOUGH TO COVER THE COST OF ITS INVESTMENT INCLUDING INTEREST AND DIVIDENDS THUS THE REGULATORS MUST START BY VALUING THE REGULATED UTILITY'S INVESTMENTS THE RATE BASE THIS PROCEDURE IS COMPLEX AND SUBJECT TO IMPONDERABLES AMONG THE PROBLEMS ALL DATA ORIGINATE WITH THE REGULATED FIRM WHAT COSTS ARE PROPER TO INCLUDE IF THE FIRM IS BUYING FROM A SUBSIDIARY REGULATORS MUST JUDGE THE APPROPRIATENESS OF THE TRANSFER PRICE IN THE CASE OF A TELEPHONE COMPANY PURCHASING UNIQUE AND EXPENSIVE SWITCHING EQUIPMENT FROM ITS SUBSIDIARY FOR EXAMPLE REGULATORS WILL BE UNABLE TO DETECT WHETHER THE DAUGHTER COMPANY IS OVERCHARGING ITS PARENT AND THUS PROVIDING GROUNDS FOR THE REGULATED BELL COMPANY TO JUSTIFY CHARGING ITS CAPTIVE CUSTOMERS HIGHER PRICES ALTERNATIVELY IF THE STATE COMMISSION EXTENDS ITS OVERSIGHT TO MANUFACTURING FACILITIES THE REGULATED ENTERPRISE MAY FIND IT PROFITABLE TO LOSE MONEY IN THE COMPETITIVE MARKET POSSIBLY BY SELLING TELEPHONES TO THE PUBLIC AT LOW COST THUS INCREASING ITS SHARE OF THE MARKET AND THE SIZE OF ITS MANUFACTURING PLANT REGULATORS MUST THEN GRANT HIGH ENOUGH PHONE RATES TO COVER THE COMPANY'S SWOLLEN INVESTMENT INCLUDING THE EXPANDED TELEPHONE PRODUCTION FACILITY THE IMPOSSIBILITY OF SORTING OUT THESE SCHEMES LIES BEHIND THE ORIGINAL PROHIBITION ON THE BABY BELLS FROM MANUFACTURING OFFERING SERVICES OR ENTERING THE LONGDISTANCE MARKET THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT WHICH IS SPONSORED BY REP EDWARD MARKEY D MASS AND COSPONSORED BY REPS JACK FIELDS R TEXAS AND RICK BOUCHER D VA WOULD AUTHORIZE THE LOCAL PHONE COMPANIES TO OFFER CABLE TV SERVICE IN COMPETITION WITH EXISTING COMPANIES ALTHOUGH THE PROPOSED ACT BANS CROSSSUBSIDIZATION ACCOUNTING METHODS ARE TOO UNCERTAIN TO MEASURE INFLATED OR UNDERPRICED SERVICES FOR EXAMPLE OFFERING A CABLE SYSTEM WOULD REQUIRE THAT THE TELEPHONE COMPANY INSTALL ADDITIONAL CAPACITY PROBABLY FIBER OPTICS PAYING GENEROUS WAGES EMPLOYING ADDITIONAL LABOR IN ORDER TO SPEED THE INSTALLATION AND TIMING STREET DIGGING FOR OFFHOURS AT PREMIUM RATES TO MINIMIZE TRAFFIC DISRUPTION WOULD BOOST THE COST OF THE NEW CAPACITY SINCE REGULATORS MUST PERMIT A FAIR RETURN ON INVESTMENT THESE COSTLY BUT JUSTIFIABLE STEPS WOULD PERMIT THE REGULATED UTILITY TO RATIONALIZE HIGHER TELEPHONE CHARGES TO CAPTIVE RESIDENTIAL USERS WHILE ITS TV TRANSMISSION BUSINESS MET OR PERHAPS UNDERCUT THE RATES OF THE EXISTING CABLE COMPANY AS LONG AS THE BELL OPERATING COMPANIES REMAIN REGULATED LICENSING THEM TO COMPETE WITH NONREGULATED FIRMS TO MANUFACTURE SWITCHING EQUIPMENT OR OTHER TELECOMMUNICATIONS GEAR OR TO VIE IN THE LONGDISTANCE MARKET RAISES SIGNIFICANT OPPORTUNITIES FOR CROSSSUBSIDIZATION AND MANIPULATION OF THE RATE BASE LEADING TO INFLATED CHARGES TO RESIDENTIAL CUSTOMERS AND/OR BELOWCOST RATES IN COMPETITIVE SECTORS FAITH IN REGULATORS' ABILITIES TO DETECT THESE STRATAGEMS IS NOT JUSTIFIED ONLY TRUE DEREGULATION COULD ELIMINATE THESE BIASES TO BE SUCCESSFUL IT REQUIRES THAT STATES AND COMMUNITIES ALLOW ALL COMERS TO ENTER THE TELEPHONE BUSINESS RESTRICTIONS ON LICENSING RATES OR SERVICES WOULD BE INCOMPATIBLE WITH OPEN COMPETITION AT LEAST INITIALLY SUCH DECONTROL WOULD MEAN HIGHER CHARGES FOR LOCAL USERS ALTHOUGH RATES MIGHT FALL EVENTUALLY VICE PRESIDENT AL GORE HAS EMPHASIZED HOWEVER THAT ALL CITIZENS MUST HAVE ACCESS TO THIS NEW INFORMATION HIGHWAY SINCE MANY WILL BE UNWILLING OR UNABLE TO PAY THE COST OF CONNECTING TO THIS TELECOMMUNICATIONS NETWORK CROSSSUBSIDIES WHICH ARE INCOMPATIBLE WITH FREE MARKETS ARE ALMOST CERTAIN TO BE REQUIRED THE ADMINISTRATION DOES NOT INTEND TO PROVIDE TOTAL FREEDOM FROM STATE SUPERVISION IN A DECEMBER SPEECH MR GORE SAID THAT IT WILL ESCHEW REGULATION FOR REGULATION'S SAKE AND THE BLIND ADHERENCE TO THE DEAD HAND OF A FREEMARKET ECONOMIST NEVERTHELESS ONLY THE LIVE HAND OF A REALLY FREE MARKET IS COMPATIBLE WITH LIFTING THE RESTRICTIONS PLACED ON THE BELL OPERATING COMPANIES MR MOORE A HOOVER INSTITUTION FELLOW WAS A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS FROM 1985 TO 1989 9402010168 940201 INTERNATIONAL VW SEES RESULTS OF COST CUTS WOLFSBURG GERMANY GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN AG SAID ITS COSTCUTTING EFFORTS OVER THE PAST 15 MONTHS HAVE YIELDED THE FINANCIALLY TROUBLED COMPANY 35 BILLION MARKS 201 BILLION IN SAVINGS NEVERTHELESS THE COMPANY DIDN'T OFFER A NEW FORECAST FOR ITS 1993 RESULTS PREVIOUSLY VW CHAIRMAN FERDINAND PIECH PREDICTED THE COMPANY WILL POST A NET LOSS OF 23 BILLION MARKS IN 1993 9402010167 940201 CANADIAN GDP INCREASES 03 OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE 03 IN NOVEMBER FROM OCTOBER SAID STATISTICS CANADA A GOVERNMENT AGENCY THE NOVEMBER RISE FOLLOWED GDP INCREASES OF 02 IN OCTOBER AND 05 IN SEPTEMBER GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION MANUFACTURING A MAJOR PART OF GDP ROSE 06 IN NOVEMBER LED BY A 21 INCREASE IN OUTPUT OF ELECTRICAL AND ELECTRONIC PRODUCTS 9402010166 940201 TECHNOLOGY SUNRISE TECHNOLOGIESFDA FREMONT CALIF SUNRISE TECHNOLOGIES INC SAID THE FOOD AND DRUG ADMINISTRATION APPROVED THE MARKETING OF THE COMPANY'S SURGICAL SYSTEM FOR OBSTRUCTIVE NASAL AND SINUS DISEASE THE MEDICAL AND DENTAL SYSTEM MANUFACTURER SAID IT WILL FOCUS ON MARKETING THE SYSTEM TO SMALL HOSPITALS AND SURGICAL CENTERS 9402010165 940201 UNION TEXAS PETROLEUM OUTLAYS HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID IT WILL SPEND 160 MILLION THIS YEAR ON CAPITAL PROJECTS DOWN FROM 192 MILLION LAST YEAR THE OIL AND GAS COMPANY SAID THE 17 DECLINE PRIMARILY REFLECTS LOWER DEVELOPMENT SPENDING IN THE UNITED KINGDOM NORTH SEA FOLLOWING THE COMPLETION OF THE PIPER AND SALTIRE PROJECTS LAST YEAR 9402010164 940201 EXPLORATION CO OF LOUISIANA INC LAFAYETTE LA EXPLORATION CO OF LOUISIANA INC SAID ITS RECENT PUBLIC OFFERING OF 40 MILLION SHARES WAS OVERSUBSCRIBED AND THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WILL OFFER 50 MILLION SHARES AT 50 CENTS EACH YIELDING PROCEEDS OF 25 MILLION BEFORE EXPENSES SAN JACINTO SECURITIES INC OF DALLAS IS THE US MANAGING SELLING AGENT 9402010163 940201 PETSTUFF TO OPEN SEVEN STORES MIAMI PETSTUFF INC SAID IT WILL OPEN SEVEN STORES IN SOUTHERN FLORIDA ON FEB 5 THE COMPANY SAID TWO STORES WILL OPEN IN MIAMI WHILE OTHERS WILL OPEN IN NORTH MIAMI BOCA RATON LIGHT HOUSE POINT PEMBROKE PINES AND PLANTATION 9402010162 940201 PEP BOYS OPENS 8 SUPERSTORES PHILADELPHIA PEP BOYSMANNY MOE & JACK SAID IT OPENED EIGHT AUTOMOTIVE SUPERSTORES EACH WITH AN AVERAGE OF 23000 SQUARE FEET INCLUDING ITS FIRST STORE IN KENTUCKY THE PHILADELPHIA AUTOPARTS AND SERVICE COMPANY WITH 387 STORES AS OF JAN 29 SAID IT PLANS TO OPEN ABOUT 50 SUPERSTORES IN 1994 9402010161 940201 WHO'S NEWS WEST ONE BANCORP WEST ONE BANCORP BOISE IDAHO NORMA DENZER CUGINI WAS NAMED TO THE BOARD OF THIS BANK HOLDING COMPANY MS CUGINI 65 YEARS OLD SUCCEEDS JANET S HAY WHO DIED 9402010160 940201 CHESTER AGREES TO BUY JOEY'S CHESTER NJ CHESTER HOLDINGS LTD SAID IT WILL PURCHASE JOEY'S CHILDREN'S WEAR A CHILDREN'S RETAIL CLOTHING CHAIN WITH SEVEN STORES IN THE NEW YORK METROPOLITAN AREA THAT IS CURRENTLY OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION TERMS WEREN'T DISCLOSED CHESTER SAID THAT THE DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT AND THAT THE CONFIRMATION HEARING IS SCHEDULED FOR THE FIRST WEEK IN MARCH THE COMPANY SAID IT WILL CONSIDER EXPANDING JOEY'S IN NEW YORK NEW JERSEY PENNSYLVANIA AND CONNECTICUT 9402010159 940201 KERRMCGEE FORMS UNIT OKLAHOMA CITY KERRMCGEE CORP SAID IT SET UP A SUBSIDIARY TO MARKET NATURAL GAS EFFECTIVE MARCH 1 THE PARENT COMPANY CURRENTLY PRODUCES NEARLY 300 MILLION CUBIC FEET OF NATURAL GAS A DAY FROM OFFSHORE BLOCKS IN THE GULF OF MEXICO AND ONSHORE FIELDS IN THE US AND CANADA THE UNIT TO BE CALLED KERRMCGEE NATURAL GAS INC WILL OFFER SALES PURCHASING DISPATCHING TRANSPORTATION STORAGE CONTRACT ADMINISTRATION ACCOUNTING AND RISK MANAGEMENT 9402010158 940201 WHO'S NEWS RR DONNELLEY & SONS CO RR DONNELLEY & SONS CO CHICAGO JERRE L STEAD AN EXECUTIVE VICE PRESIDENT OF AMERICAN TELEPHONE & TELEGRAPH CO WAS NAMED A DIRECTOR OF THIS COMMERCIAL PRINTER MR STEAD 51 YEARS OLD FILLS A VACANCY ON THE 12MEMBER BOARD 9402010157 940201 WHO'S NEWS MARSH & MCLENNAN COS MARSH & MCLENNAN COS NEW YORK ROBERT CLEMENTS 61 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT THE MARSH & MCLENNAN RISK CAPITAL CORP UNIT OF THIS PROFESSIONAL SERVICES FIRM BOTH POSTS ARE NEW MR CLEMENTS WAS PRESIDENT OF THE PARENT 9402010156 940201 ECONOMY PERSONAL INCOME INCREASED 05 IN DECEMBER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DISPOSABLE PERSONAL INCOME ROSE 05 IN DECEMBER FROM NOVEMBER MATCHING SPENDING GAINS DURING THE LAST MONTH OF THE YEAR THE COMMERCE DEPARTMENT SAID ANALYSTS SAID THE DATA WHICH HAVE BEEN ADJUSTED FOR INFLATION SUGGEST THAT THE IMPROVING LABOR MARKET IS HELPING TO LIFT THE INCOMES AND SPENDING HABITS OF AMERICANS STILL AMERICANS WERE WORSE OFF IN 1993 IN TERMS OF INCOME GAINS THAN THEY WERE IN 1992 WITH THE EFFECTS OF INFLATION STRIPPED AWAY INCOMES ROSE 19 LAST YEAR AFTER INCREASING 29 IN 1992 THE COMMERCE DEPARTMENT SAID THE SLOWDOWN IN PERSONAL INCOME GROWTH LARGELY REFLECTED THE FACT THAT MANY AMERICANS IN AN EFFORT TO AVOID HIGHER TAXES SHIFTED BONUS PAYMENTS THAT ORDINARILY WOULD HAVE BEEN RECEIVED LAST YEAR TO LATE 1992 IF THESE PAYMENTS HADN'T BEEN ACCELERATED THE GAP BETWEEN THE TWO YEARS WOULD HAVE BEEN NARROWER WITHOUT TAKING INTO ACCOUNT PRICE INCREASES DISPOSABLE INCOME ROSE 06 IN DECEMBER COMPARED WITH 05 THE MONTH BEFORE FOR THE YEAR DISPOSABLE INCOME ROSE 46 COMPARED WITH 64 IN 1992 SPENDING INCREASED 33 IN 1993 ADJUSTED FOR INFLATION COMPARED WITH 26 IN 1992 MOST OF THE INCREASED SPENDING DURING THE YEAR CAME FROM PURCHASES OF DURABLE GOODS SUCH AS CARS AND FURNITURE NONDURABLE PURCHASING WAS WEAK FOR DECEMBER THE SAVINGS RATE ROSE TO 42 FROM 41 THE MONTH BEFORE BUT FOR THE YEAR THE SAVINGS RATE SLIPPED TO 4 FROM 53 IN 1992 HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9402010155 940201 WHO'S NEWS STERLING ELECTRONICS CORP STERLING ELECTRONICS CORP HOUSTON PRESIDENT RONALD S SPOLANE 39 YEARS OLD WAS ELECTED TO SUCCEED HIS FATHER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS ELECTRONICPARTS DISTRIBUTOR MICHAEL S SPOLANE HIS FATHER DIED FRIDAY BECAUSE OF A HEART AILMENT HE WAS 67 9402010154 940201 WHO'S NEWS IWERKS ENTERTAINMENT INC IWERKS ENTERTAINMENT INC BURBANK CALIF ERIC G RODLI 37 YEARS OLD WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER AT THE MAKER OF SPECIALTY THEATERS AND SIMULATOR RIDES FOR AMUSEMENT VENUES HE RETAINS HIS PREVIOUS POSTS AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9402010153 940201 WHO'S NEWS HIBERNIA CORP HIBERNIA CORP NEW ORLEANS VIRGINIA EASON WEINMANN AND ROBERT T RATCLIFF WERE NAMED DIRECTORS OF THE BANKING COMPANY EXPANDING THE BOARD'S SIZE TO 19 MEMBERS MS WEINMANN 64 YEARS OLD IS PRESIDENT AND TREASURER OF TWE MINERAL CORP MR RATCLIFF 51 IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RATCLIFF CONSTRUCTION CO ALEXANDRIA LA 9402010152 940201 WHO'S NEWS KNIGHTRIDDER INC KNIGHTRIDDER INC MIAMI POLK LAFFOON IV 48 YEARS OLD WAS NAMED VICE PRESIDENT/CORPORATE RELATIONS OF THIS NEWSPAPER PUBLISHING AND INFORMATION SERVICES COMPANY EFFECTIVE MARCH 1 MR LAFFOON SUCCEEDS FRANK N HAWKINS JR 53 WHO IS LEAVING TO BECOME PRESIDENT OF ACCESS ASIA GROUP A HONG KONG CONGLOMERATE PREVIOUSLY MR LAFFOON WAS KNIGHTRIDDER'S ASSISTANT TO THE PRESIDENT 9402010151 940201 WHO'S NEWS LOUISIANAPACIFIC CORP LOUISIANAPACIFIC CORP PORTLAND ORE RONALD L PAUL 50 YEARS OLD WAS ELECTED TO THE BOARD OF THIS FORESTPRODUCTS COMPANY HE SUCCEEDS JOHN C HART WHO RETIRED MR PAUL FORMERLY GENERAL MANAGER OF THE COMPANY'S SOUTHERN DIVISION WAS ALSO NAMED VICE PRESIDENT FOR OPERATIONS HE SUCCEEDS JAMES EISSES WHO WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT 9402010150 940201 WHO'S NEWS TUBOSCOPE VETCO INTERNATIONAL CORP TUBOSCOPE VETCO INTERNATIONAL CORP HOUSTON ERIC L MATTSON WAS NAMED TO THE BOARD OF THIS PIPELINE COATING AND INSPECTION COMPANY INCREASING THE NUMBER OF MEMBERS TO NINE MR MATTSON 42 IS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BAKER HUGHES INC 9402010149 940201 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 ANZ BANKING GROUP LTD 250 MILLION OF SUBORDINATED NOTES DUE FEB 1 2004 PRICED AS 625S AT 99705 TO YIELD 629 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BELL ATLANTICNEW JERSEY 250 MILLION OF DEBENTURES PRICED THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO THE DEBENTURES DUE FEB 1 2004 WERE PRICED AS 5875S AT 9981 TO YIELD 59 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS THE DEBENTURES ARE RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P BELL ATLANTICNEW JERSEY IS A UNIT OF BELL ATLANTIC CORP FEDERAL HOME LOAN BANK SYSTEM 115 MILLION OF NOTES DUE FEB 7 2001 PRICED AT PAR TO YIELD 5625 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 46 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO USX CORP 300 MILLION OF NOTES DUE FEB 15 2004 PRICED AS 72S AT 99786 TO YIELD 723 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 160 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC DIGITAL LINK CORP INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO AND WESSELS ARNOLD & HENDERSON POST PROPERTIES INC THREE MILLION COMMON SHARES PRICED AT 2950 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WESTERN DIGITAL CORP 66 MILLION COMMON SHARES PRICED AT 1175 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO QUEBEC 1 BILLION OF DEBENTURES DUE FEB 9 2024 PRICED AS 7125S AT 99485 TO YIELD 7167 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES G027 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 348 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 158 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1690 IS BACKED BY CLASS PA FROM THE AGENCY'S REMIC TRANCHE 1611 COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 100 MILLION OF CORRIDOR FLOATINGRATE EURONOTES DUE FEBRUARY 1995 AT ISSUE AND REOFFER PRICE PAR VIA SALOMON BROTHERS LTD PAYABLE QUARTERLY AT 60 BASIS POINTS OVER THREEMONTH LONDON INTERBANK OFFERED RATE WHEN LIBOR IS WITHIN 0 TO 4 IN FIRST SIX MONTHS AND 0 TO 425 IN SECOND SIX MONTHS FEES UNDISCLOSED DAIMLERBENZ NORTH AMERICA CORP GERMAN PARENT 60 MILLION OF ZEROCOUPON EUROBONDS DUE FEB 17 1995 AT ISSUE PRICE 99 VIA JP MORGAN SECURITIES LTD REDEMPTION AMOUNT LINKED TO VALUE OF JP MORGAN EMERGING MARKETS BOND INDEX GUARANTOR DAIMLERBENZ AG FEES 02 POINT DEUTSCHE PFANDBRIEF UND HYPOTHEKENBANK AG GERMANY ONE BILLION MARKS OF FLOATINGRATE NOTES DUE FEBRUARY 2003 AT ISSUE PRICE 9997 VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE PAYABLE SEMIANNUALLY AT SIXMONTH FRANKFURT INTERBANK OFFERED RATE FLAT FEES 02 POINT LESS 002 POINT FOR LEAD MANAGER GOLDMAN SACHS GROUP LTD US 150 MILLION CANADIAN DOLLARS OF FLOATINGRATE EURONOTES DUE FEB 18 2004 AT ISSUE AND REOFFER PRICE 998 VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY FLAT AT THREEMONTH BANKER'S ACCEPTANCE RATE FOR CANADIAN DOLLARS MINIMUM COUPON 5 FEES 0375 RABOBANK NEDERLAND NETHERLANDS 500 MILLION DUTCH GUILDERS OF 5875 EUROBONDS DUE MAR 4 2004 AT ISSUE PRICE 101 REOFFERED 10025 TO YIELD 5841 A MARGIN OF 19 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE RABOBANK NEDERLAND NETHERLANDS 100 MILLION OF FOREIGN EXCHANGE RATELINKED RANGE FLOATINGRATE EURONOTES DUE FEB 24 1995 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 025 POINT MULTIPLIED BY NUMBER OF INTEREST ACCRUAL DAYS DIVIDED BY TOTAL NUMBER OF LONDON BUSINESS DAYS IN COUPON PERIOD INTEREST ACCRUES ON DAYS WHEN MARKDOLLAR EXCHANGE RATE ON TELERATE PAGE 3760 FALLS BETWEEN OR IS EQUAL TO 162 AND 188 MARKS A DOLLAR FOR LAST TWO DAYS OF EACH COUPON PERIOD FOREIGN EXCHANGE RATE WILL BE SPOT RATE PREVAILING ON THIRD LAST DAY OF COUPON PERIOD FEES 01 SNS GROEP NV NETHERLANDS 500 MILLION DUTCH GUILDERS OF 55 EUROBONDS DUE MAR 1 1999 AT ISSUE PRICE 10075 VIA SNS BANK NEDERLAND NV REOFFERED AT 10005 TO YIELD 549 A MARGIN OF 35 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE TORONTODOMINION AUSTRALIA LTD CANADIAN PARENT 100 MILLION AUSTRALIAN DOLLARS OF 575 EUROBONDS DUE MARCH 28 1997 AT ISSUE PRICE 1009 VIA HAMBROS BANK LTD BONDS YIELD 593 AT 99525 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 28 BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR TORONTODOMINION BANK FEES 15 POINTS LESS 0125 POINT FOR LEAD MANAGER 9402010148 940201 LETTERS TO THE EDITOR IT'S INJUSTICE NOT IMMORALITY WE HATE GERTRUDE HIMMELFARB OBVIOUSLY HAS EXPERT KNOWLEDGE OF THE VICTORIAN PERIOD AND DID A GOOD JOB OF PROVING THAT THE FEMINIST SCHOOL OF THOUGHT DOES NOT SHARE ANYTHING WITH THE REAL VICTORIAN AGE NEW VICTORIANS' DON'T EARN THAT LABEL EDITORIAL PAGE JAN 12 HER INTERPRETATIONS OF CATHARINE MACKINNON'S WORK AND BELIEFS HOWEVER ARE INCORRECT AND MISLEADING HER DISCUSSION OF THE MORALITY FACTOR IN MS MACKINNON'S FEMINISM ILLUSTRATES THE MISUNDERSTANDING OF AND SUBSEQUENT ATTACK ON MS MACKINNON'S WRITINGS BY THE PRESS AND MAINSTREAM LIBERALS FIRST SHE IS WRONG WHEN SHE STATES THAT THIS FEMINISM PREACHES MORALITY BECAUSE IT ABSOLUTELY DOES NOT THE THINGS MS MACKINNON AND MYSELF OBJECT TO PORNOGRAPHY HATE SPEECH SEXUAL HARASSMENT AND RAPE ARE ODIOUS NOT BECAUSE THEY ARE IMMORAL BUT BECAUSE THEY DEGRADE HUMILIATE OPPRESS AND SILENCE WOMEN MORALITY HAS ABSOLUTELY NO PLACE IN THIS SCHOOL OF THOUGHT IT IS COMPLETELY REMOVED FROM THE SUBJECT MATTER BECAUSE FEMINISM SPROUTS NOT FROM IMMORALITY BUT FROM INJUSTICE PROVING THAT SHE HAS NOT THOROUGHLY READ MS MACKINNON MS HIMMELFARB CLAIMS THAT THEY MACKINNON'S FEMINISTS DO NOT PROPOSE TO DO ANYTHING ABOUT THE KINDS OF CRIME VIOLENT IRRATIONAL REPEATED AND REPEATEDLY UNPUBLISHED CRIME THAT IS THE MOST PRESSING CONCERN OF MOST CITIZENS THEY PROPOSE ONLY TO PASS NEW LEGISLATION TO PUNISH SPEECH OR CONDUCT NORMALLY REGARDED AS UNCIVIL RATHER THAN ILLEGAL THIS IS UNTRUE IN FACT THE VERY ACTS OF PROHIBITION SHE DISCUSSED EARLIER IN THE ARTICLE ARE THE PROPOSED DETERRENTS TO THOSE CRIMES PORNOGRAPHY HAS BEEN SHOWN TO INDUCE SEXUALLY VIOLENT BEHAVIOR IN IRRATIONAL INDIVIDUALS WITH PERVERTED SEXUAL FANTASIES THESE INDIVIDUALS WHO ARE NOT FEW ARE A THREAT AND A DANGER TO EVERY SINGLE WOMAN AND CHILD ADDITIONALLY SEXUAL CRIMES SUCH AS CHILD MOLESTATION RAPE AND STREET HARASSMENT ARE PERHAPS THE MOST REPEATED AND REPEATEDLY UNPUNISHED CRIMES IN OUR SOCIETY THESE CRIMES ARE CAUSED BY THE VERY SEXUAL EXPLOITATION DEGRADATION HUMILIATION DEHUMANIZATION AND DOMINATION OF WOMEN THAT IS PORTRAYED IN PORNOGRAPHY ANNOUNCED IN HATE SPEECH REVEALED IN SEXUAL HARASSMENT AND MANIFESTED IN RAPE THEREFORE THIS FEMINIST SCHOOL OF THOUGHT IS FIGHTING TO PROTECT WOMEN FROM VIOLENT CRIMES NOT DICTATE MORALITY TO MEN OR WOMEN THE VICTORIAN AGE WAS ONE OF THE MOST OPPRESSIVE AND TORMENTING PERIODS OF WOMEN'S HISTORY I FIND IT LUDICROUS THAT A WOMAN IN 1994 CAN PORTRAY VICTORIAN WOMEN AS HAVING A MORE FAVORABLE OUTLOOK THAN MS MACKINNON'S FEMINISTS FEMINISTS LIKE CATHARINE MACKINNON AND CULTURAL CONSERVATIVES LIKE RUSSELL KIRK HAVE FOUND COMMON GROUND IN THEIR OPPOSITION TO PORNOGRAPHY SOME ALARMING EVIDENCE BUTTRESSES THE CONTENTION THAT PORNOGRAPHY CONTRIBUTES TO SEX CRIMES AND VIOLENCE TWENTYNINE OF 36 SERIAL MURDERERS INTERVIEWED BY THE FBI CONFESSED THAT PORNOGRAPHY HAD A NEGATIVE IMPACT ON THEIR THINKING AND BEHAVIOR THE LOS ANGELES POLICE DEPARTMENT POINTS OUT THAT IN THE MORE THAN 40 CHILD SEX ABUSE CASES IT INVESTIGATED BETWEEN OCTOBER 1976 AND MARCH 1977 PORNOGRAPHIC PHOTOS WERE FOUND IN EVERY CASE ACCORDING TO POLICE VICE SQUADS ACROSS THE NATION 77 OF MOLESTERS OF BOYS AND 87 OF MOLESTERS OF GIRLS CONFESSED TO IMITATING THE SEXUAL BEHAVIOR DEPICTED IN PORNOGRAPHY A STUDY BY CANADIAN PSYCHOLOGIST DR WILLIAM MARSHALL OF RAPISTS IN CANADIAN PRISONS FOUND THAT VARIOUS FORMS OF PORNOGRAPHIC FANTASIES MAY LEAD TO CRIME PORNOGRAPHY REDUCES SEX TO A PLAYTHING HUMAN BEINGS TO MERE BODIES AND HUMAN BODIES TO SEX MACHINES IT DENIGRATES THE SACREDNESS OF SEX MARRIAGE FAMILY AND HUMAN LIFE IT TRANSFORMS SEX FROM A SACRED UNION OF LIFE AND LOVE TO A TOOL OF VOYEURISTIC GRATIFICATION CERTAINLY PORNOGRAPHY HELPS CREATE A MORAL AND SOCIAL CLIMATE CONDUCIVE TO SEXUAL ABUSE AND EXPLOITATION IF THE GREAT WORKS OF THE MORAL AND INTELLECTUAL GIANTS OF CIVILIZATION CAN EDUCATE ENLIGHTEN AND INSPIRE THEN PORNOGRAPHIC WORKS CAN CORRUPT BY GLAMORIZING AND ENCOURAGING PERNICIOUS IDEAS AND BEHAVIOR IDEAS DO HAVE CONSEQUENCES 9402010147 940201 BUSINESS WORLD REDEMPTION OF THE MUTUALFUND PROMISE BY TIM W FERGUSON IF THE MUTUALFUND EXPLOSION OF THE PAST DECADE IS THE SWEET DREAM OF DEMOCRATIC CAPITALISM INVOLVING TENS OF MILLIONS OF ORDINARY PEOPLE AND 2 TRILLION IN ACTIVE INVESTMENT THEN THE NIGHTMARE HAS ALWAYS BEEN A SUDDEN SOUR ENDING THIS MIGHT COME FROM A STOCKMARKET PANIC PERHAPS PROMPTED BY SCANDAL OR FINANCIAL IMPLOSION AT A PRIVATELY HELD GIANT SUCH AS FIDELITY INVESTMENTS THE INDUSTRY LEADER FIDELITY HAS MORE THAN 260 BILLION UNDER MANAGEMENT A GOOD 20 GREATER THAN THE ASSETS OF CITICORP MANY FOLKS YOURS TRULY INCLUDED HAVE THE BULK OF THEIR PAPER WEALTH STORED BEHIND FIDELITY'S OPAQUE CORPORATE WALLS TRUST IS THE COIN OF THE REALM BECAUSE OF ITS SIZE AND AGGRESSIVE CULTURE THE BOSTONBASED FIRM IS WHERE ATTENTION HAS TURNED SINCE TROUBLE SURFACED AT INVESCO GROUP IN DENVER OVER THE PERSONAL STAKES OF A STAR FUND MANAGER THE EASIEST DEFENSE AGAINST SUSPICION OF SELFDEALING IS A GOOD TRACK RECORD WITH CLIENTS' MONEY AND FIDELITY HAS LITTLE WORRY THERE INDEED THE WHOLE INDUSTRY'S INTENSE AND PUBLIC PERFORMANCE BATTLE IS PLENTY OF REASON FOR MANAGERS TO LOOK AFTER INVESTOR YIELDS FOREMOST BUT THE INDUCEMENT IS NOT AIRTIGHT IT IS EASY TO CONSTRUCT A SCENARIO IN WHICH A MONEY MANAGER HAS A LOT MORE TO GAIN FROM HER OWN HOLDING IN A SPECULATIVE STOCK THAN SHE RISKS FROM NOT MAXIMIZING THE FUND'S GAINS IN THAT SAME INVESTMENT GIVEN WHAT A TINY SHARE IT LIKELY REPRESENTS IN THE POOL'S PORTFOLIO IN FACT THE POTENTIAL FOR ABUSE IS HIGH SAYS GREGG JARRELL A FORMER CHIEF ECONOMIST FOR THE SECURITIES AND EXCHANGE COMMISSION MR JARRELL IS NOT ONE TO HYPE MARKET IMPERFECTIONS HE WAS A DEREGULATION SOLDIER FOR RONALD REAGAN BUT THE WALL STREET DUST HAS BEEN SO THICK HE CONFESSES THAT I WAS SURPRISED TO LEARN TWO YEARS AGO THAT MUTUAL FUND MANAGERS AND ANALYSTS FOR BROKERAGE FIRMS WERE FAIRLY UNRESTRICTED IN THEIR ABILITY TO TRADE FOR INDIVIDUAL ACCOUNTS THE REVELATION WASN'T REASSURING ANALYSTS IN PARTICULAR ARE FORGIVEN A CERTAIN ACCESS TO INSIDER INFORMATION BECAUSE THEY TRANSMIT KNOWLEDGE TO THE BROAD MARKET MR JARRELL SAYS BUT THE PROSPECT OF THEIR CAPTURING THE RETURNS THEMSELVES BLURS ANY LEGAL DISTINCTION BETWEEN THEM AND THE CORPORATE OFFICIALS THEY GLEAN DETAILS FROM WHY SHOULD ONE BE ABLE TO TRADE AND NOT THE OTHER MOREOVER THE HOST OF TIES BETWEEN RESEARCH OR TRADING SERVICES AND FUND MANAGERS THE SOCALLED SOFTDOLLAR MARKET OFFERS ADDITIONAL POTENTIAL FOR PRIVATE ENRICHMENT EVEN A COMPANY AS GARGANTUAN AS FIDELITY WITH ITS OWN RESEARCH AND TRADING OPERATIONS LETS PORTFOLIO CHIEFS GO OUTSIDE FOR SUCH SERVICES AN EFFICIENTMARKETS PURIST MIGHT SUGGEST LAISSEZ FAIRE AND CAVEAT EMPTOR THE MORE TRADING THE FASTER THE BETTER LET SECURITIES HOUSES ENFORCE THEIR OWN STANDARDS AS DESIRED WITH CUSTOMERS HAVING RECOURSE TO ALLEGE FRAUD THAT'S GOOD THEORY BUT WITH RETAIL INVESTING ESPECIALLY IN MUTUAL FUNDS SO GROUNDED IN EASY CONFIDENCE PARTICIPANTS MAY SHARE AN INTEREST IN ENFORCING A QUEENSBERRY CODE THE BLOSSOMING OPPORTUNITIES FOR UNFAIR ACTIVITY LEAVE EVEN MR JARRELL ASKING FOR IMPROVED OVERSIGHT ABSENT TECHNOLOGICAL LEAPS IN SCREENING THAT WOULD MEAN MORE PERSONNEL AT THE SEC THE AGENCY'S REGULATORY STAFF COUNT HAS GROWN 36 SINCE 1985 AND ITS SPENDING BY FAR MORE THAN THAT ACCORDING TO THE CENTER FOR THE STUDY OF AMERICAN BUSINESS BUT BOLSTERING A BUREAUCRACY OVERSEEN BY A JUDICIOUS COMMISSION WOULD BEAT SEEING NEW LEGISLATION COME OUT OF THE HOUSE COMMERCE SUBCOMMITTEE CHAIRED BY THE HYPERACTIVE ED MARKEY OF MASSACHUSETTS WHO WAS QUICK TO LEAP ON THE ISSUE OF TRADING BY FUND MANAGERS NO ONE WANTS TO BE CAUGHT TAKING FINANCIALSYSTEM RISK TOO LIGHTLY NOT AFTER WHAT HAPPENED IN THE BANK AND THRIFT INDUSTRIES A DECADE AGO BUT THAT WAS A CASE OF BAD LAW AS WELL AS LAX OVERSIGHT BY CONTRAST THE SECURITIES INDUSTRY HAS FUNCTIONED REMARKABLY WELL NOTWITHSTANDING ITS CELEBRATED PROSECUTIONS ONE COULD ARGUE THAT IT IS MORE HONEST THAN EVER GIVEN THE HUGE GROWTH IN TRADING VOLUME FOR ALL HIS CURRENT APPREHENSION MR JARRELL OBSERVES IF YOU WANTED TO DESCRIBE A CLEAN PROCONSUMER WELLOPERATED ETHICALLY PRISTINE INDUSTRY AND REALIZING OF COURSE IT WILL BE RUN BY IMPERFECT HUMAN BEINGS PROBABLY THE MUTUALFUND BUSINESS OVER THE LAST 15 YEARS WOULD BE PRETTY CLOSE TO WHAT YOU'D DESCRIBE SEC COMMISSIONER CARTER BEESE JR A BUSH APPOINTEE WHOSE TERM RUNS TO 1996 SEEMS TO SECOND THAT MUTUALFUND COMPLEXES LIVE AND DIE ON THEIR STANDING HE SAYS AND ARE MOTIVATED TO SELFPOLICE THERE'S NO GOVERNMENT GUARANTEE AGAINST LOSS HIS AGENCY WILL ACT WHEN SOMEBODY IS STEPPING OVER THE LINE BUT WHAT YOU'RE SEEING FROM CONGRESS IS A PERCEPTION BASED ON SELECTED INSTANCES IN THE PRESS TO IMPUTE DECEIT IN THE EXECUTION OF PERSONAL TRADES ASSUMES SOMEBODY WHO HAS LARCENY IN HIS HEART FOR MR BEESE A FORMER INVESTMENT BANKER THE BEST INNOCULATION AGAINST ABUSE IS DISCLOSURE IN THIS CASE OF THE POLICIES OF THE MUTUALFUND HOUSES ON STAFF TRADING THE SEC HAS BEEN REQUIRING MORE INFORMATION GENERALLY FOR ARMCHAIR INVESTORS NONE OF THIS COMES FREE BUT INFLEXIBLE RULEMAKING WOULD COST FAR MORE DISCLOSURE IS THE RUB IN ANOTHER CONTROVERSY DOGGING THE MUTUAL FUNDS THEIR SALE IN AND BY BANKS SURVEYS INDICATE TO THE SATISFACTION OF MR BEESE AS WELL AS ACTIVIST LEGISLATORS THAT MOST PEOPLE WHO INVEST IN A FUND THROUGH THEIR BANK THINK THEIR MONEY IS PROTECTED AGAINST LOSS IN THE SAME WAY A DEPOSIT WOULD BE THIS HAS PROMPTED CALLS TO RESTRAIN BANKS FROM OFFERING MUTUAL FUNDS AS CONVENIENTLY AS BUYER AND SELLER MIGHT LIKE SOME WOULD PROHIBIT THIS INVESTMENT FROM TAKING PLACE WITHIN A BANK BRANCH OR AT AN AUTOMATIC TELLER THAT ULTIMATELY WILL BE THE CALL OF THE BANKING REGULATORS BUT FOR THE SEC'S PART MR BEESE IS CHAMPIONING TRUTHINPACKAGING CLEARLY DISTINGUISHING A SAVINGS ACCOUNT FROM AN EQUITY OR BOND FUND ISN'T TOO MUCH TO ASK MR BEESE ALSO QUESTIONS A BANK ATTACHING ITS NAME TO THE FUNDS IT SELLS BUT HE IS NOT OPPOSED TO THE PENDING ACQUISITION OF THE DREYFUS MUTUALFUND GROUP BY MELLON BANK TO HIM IF BANKS ARE TO BE INVOLVED IN FUNDS IT SHOULDN'T MATTER WHETHER THEY PURCHASE THEM OR ORIGINATE THEM THAT MAKES SENSE ANY DRAMATIC REVERSAL IN THE MARKETS WOULD SHARPLY INCREASE THE CHANCE OF POLITICAL MISSTEPS IN THE MUTUALFUND AREA BARRING THAT HOWEVER THE MOST SIGNIFICANT QUESTIONS ABOUT THIS BRAVE NEW WORLD OF RETAIL INVESTING LOOK BEYOND THE IMMEDIATE WORRIES THEY CONCERN AN AREA OF PARTICULAR INTEREST TO CARTER BEESE THE RELATIONSHIP TO RETIREMENT PLANNING MORE ON THAT TO FOLLOW 9402010146 940201 DIVIDEND NEWS RYAN BECK & CO RYAN BECK & CO WEST ORANGE NJ ANNOUNCED A SPECIAL CASH DIVIDEND OF 18 CENTS A SHARE AND A QUARTERLY CASH DIVIDEND OF ONE CENT A SHARE PAYABLE FEB 18 TO HOLDERS OF RECORD FEB 10 THE INVESTMENTBANKING FIRM ALSO SAID FOURTHQUARTER NET INCOME WAS 626000 OR 18 CENTS A SHARE DOWN 43 FROM A YEAREARLIER 11 MILLION OR 31 CENTS A SHARE REVENUE SLID 34 TO 66 MILLION FROM 69 MILLION FOR THE YEAR EARNINGS WERE 41 MILLION OR 115 A SHARE UP FROM A YEAREARLIER 35 MILLION OR 102 A SHARE REVENUE ROSE 17 TO 286 MILLION 9402010145 940201 INTERNATIONAL FIAT '93 LOSS IS 106 BILLION FIRST SINCE '79 BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FIAT SPA PLUNGED INTO THE RED LAST YEAR FOR THE FIRST TIME SINCE 1979 WITH A LOSS OF ABOUT 18 TRILLION LIRE 106 BILLION CHAIRMAN GIOVANNI AGNELLI SAID IN A LETTER TO SHAREHOLDERS THE ITALIAN AUTO MAKER ALSO SAID IT PLANS TO ISSUE A ONE TRILLIONLIRE 10YEAR FIXEDRATE BOND COORDINATED BY MILAN MERCHANT BANK MEDIOBANCA THE ISSUE COMES ON THE HEELS OF A FIVE TRILLION LIRE CAPITAL INCREASE ANNOUNCED IN SEPTEMBER WHICH IS INTENDED TO UPDATE ITS AGING MODEL LINE AND PAY DOWN DEBT ANALYSTS SAID THE PRELIMINARY RESULT IS IN LINE WITH MOST EXPECTATIONS AND IS BETTER THAN THE WORST PREDICTIONS OF A 1993 LOSS OF AS MUCH AS 21 TRILLION LIRE FIAT REPORTED NET INCOME OF 551 BILLION LIRE IN 1992 WHILE MR AGNELLI HIMSELF STOPPED SHORT OF PREDICTING A TURNAROUND IN 1994 HE SAID DEMAND SHOULD PICK UP WARNING THAT ANY RECOVERY WOULD BE SLOW WHAT'S FOR CERTAIN IS THAT 1993 WAS THE BOTTOM FOR FIAT AND WE EXPECT TO SEE A STRONG IMPROVEMENT IN 1994 EVEN IF A BREAKEVEN TARGET WILL BE VERY DIFFICULT SAID FAUSTO GALLEOTTI DIRECTOR OF RESEARCH AT PASFIN SECURITIES IN MILAN CONSOLIDATED SALES DECLINED 19 TO 537 TRILLION LIRE FROM 54607 TRILLION LIRE IN 1992 SALES FIGURES WERE ADJUSTED TO TAKE INTO ACCOUNT FIAT'S SALE OF A CONTROLLING STAKE IN THE RINASCENTE SPA DEPARTMENT STORE CHAIN IN OCTOBER TO AGNELLI HOLDING COMPANY IFIL FINANZIARIA DI PARTECIPAZIONI SPA FIAT BLAMED THE RESULTS ON THE PROLONGED CRISIS IN THE EUROPEAN AND ITALIAN CAR MARKETS CAR SALES DECLINED 15 IN EUROPE LAST YEAR AND 20 IN ITALY WHILE THE MARKET FOR INDUSTRIAL VEHICLES FELL FOR THE FOURTH CONSECUTIVE YEAR BY 22 IN EUROPE AS A RESULT FIAT'S IVECO TRUCK SUBSIDIARY SUFFERED A 21 DECLINE IN SALES MR AGNELLI SAID AS PART OF ONGOING RESTRUCTURING EFFORTS FIAT IS IN THE MIDST OF INTENSE LABOR NEGOTIATIONS TO LAY OFF 5000 EMPLOYEES PERMANENTLY AND 7000 TO 10000 ON A TEMPORARY BASIS THE CAR DIVISION WHICH HAS BANKED ITS FUTURE ON UPDATING ITS MODEL LIST INTRODUCED ITS NEW PUNTO CITY CAR IN SEPTEMBER AND A SPORTS COUPE WILL FOLLOW FIAT AUTO'S CHIEF EXECUTIVE OFFICER PAOLO CANTARELLA SAID THE COMPANY EXPECTS TO SELL 500000 PUNTOS IN EUROPE IN 1994 THEIR STRATEGY CALLED FOR NEW MODELS AND IT REMAINS TO BE SEEN WHETHER THEY'RE GOING TO BE SUCCESSFUL SAID ENRICO PONZONE ITALY ANALYST WITH KLEINWORT BENSON IN LONDON THEIR TRACK RECORD IN THAT AREA IS NOT VERY GOOD 9402010144 940201 WHO'S NEWS NETWORK SOLUTIONS INC NETWORK SOLUTIONS INC WARWICK RI RICHARD F HAWKINS 41 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER EFFECTIVE TODAY AS CHIEF EXECUTIVE HE SUCCEEDS ROBERT F RADICAN 57 WHO CONTINUES AS CHAIRMAN THE POST OF CHIEF OPERATING OFFICER WILL BE RELINQUISHED AND WON'T BE FILLED MR HAWKINS SAID THE COMPUTER CONSULTING SERVICES CONCERN ALSO SAID IT WILL CHANGE ITS NAME TO NETWORK SIX INC EFFECTIVE TODAY THE COMPANY ALSO NAMED JAMES J TRAINOR 61 A DIRECTOR EXPANDING THE BOARD TO SIX MR TRAINOR IS A CONSULTANT WORKING OUT OF WASHINGTON THE COMPANY SAID 9402010143 940201 WHO'S NEWS UNIROYAL TECHNOLOGY CORP UNIROYAL TECHNOLOGY CORP SARASOTA FLA JOHN A PORTER 50 YEARS OLD WAS ELECTED TO THE BOARD OF THIS MAKER OF PLASTIC SPECIALTY CHEMICAL AND POLYMER PRODUCTS THE ELECTION INCREASES THE NUMBER OF DIRECTORS TO EIGHT MR PORTER WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TELEPHONE MANAGEMENT CORP BEFORE IT WAS ACQUIRED BY LDDS COMMUNICATIONS INC IN 1988 CURRENTLY HE IS VICE CHAIRMAN OF THE SUCCESSOR COMPANY OF THE THREEWAY MERGER OF LDDS COMMUNICATIONS RESURGENS COMMUNICATIONS GROUP INC AND METROMEDIA COMMUNICATIONS CORP TO FORM LDDS METROMEDIA CORP 9402010142 940201 WHO'S NEWS COMPUTER RESEARCH INC COMPUTER RESEARCH INC PITTSBURGH DAVID K KLOTZ 44 YEARS OLD SOLE PROPRIETOR OF DIALOGUE INTERNATIONAL A SALES AND MARKETING CONSULTING CONCERN WAS ELECTED A DIRECTOR OF THIS PROVIDER OF DATA PROCESSING ACCOUNTING AND RECORDKEEPING SERVICES FOR FINANCIAL INSTITUTIONS HE SUCCEEDS NORMAN SHALLAN WHO DIED IN JULY ALSO JAMES HOWLEY WHO SERVED A SPECIAL ONEYEAR TERM ON THE COMPANY'S BOARD LAST YEAR WASN'T RENOMINATED THIS REDUCES THE BOARD TO FIVE MEMBERS 9402010141 940201 WHO'S NEWS JOHNSON CONTROLS CORP JOHNSON CONTROLS CORP MILWAUKEE H MICHAEL DODGE 50 YEARS OLD VICE PRESIDENT AND GENERAL MANAGER OF NORTH AMERICAN OPERATIONS FOR THE COMPANY'S AUTOMOTIVE SEATING BUSINESS WAS NAMED A CORPORATE VICE PRESIDENT OF THIS MAKER OF BUILDING CONTROLS BATTERIES AND AUTO PRODUCTS 9402010140 940201 MARKETING & MEDIA FOUR RECORD FIRMS PLAN NEW CHANNEL FOR MUSIC VIDEOS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS EXPECTED FOUR OF THE WORLD'S LARGEST RECORD COMPANIES ANNOUNCED PLANS TO LAUNCH A NEW MUSICVIDEO CABLE CHANNEL THAT COULD BE FORMIDABLE COMPETITION FOR VIACOM INC'S MTV NETWORKS THE FOUR COMPANIES PLAN TO LAUNCH THEIR 24HOUR MUSIC CHANNEL IN THE FOURTH QUARTER OF 1994 IN THE US AND PUERTO RICO THE PARTNERS SAID THE FOUR MUSIC COMPANIES INVOLVED ARE TIME WARNER INC'S WARNER MUSIC GROUP SONY CORP'S SONY MUSIC EMI MUSIC A UNIT OF THORN EMI PLC AND POLYGRAM HOLDING INC 80OWNED BY PHILIPS ELECTRONICS NV A FIFTH PARTNER IN THE PROPOSED CHANNEL IS TICKETMASTER CORP FEW DETAILS ABOUT THE NEW CABLE VENTURE WERE GIVEN IN A BRIEF PRESS RELEASE THE MUSIC COMPANIES SAID THEY PLAN TO RECRUIT ADDITIONAL PARTNERS INCLUDING CABLE TELEVISION OPERATORS THERE HAD BEEN SPECULATION IN THE MUSIC INDUSTRY THAT THE MUSIC GIANTS PLANNED AN EXCLUSIVE SERVICE THAT WOULD WITHHOLD THEIR VIDEOS FROM COMPETING SERVICES SUCH AS MTV BUT YESTERDAY'S STATEMENT SPECIFIES THAT THE RECORD COMPANIES WILL CONTINUE TO LICENSE THEIR MUSIC VIDEOS TO OTHER ENTITIES AND SAID THAT THEY WILL PLAY VIDEOS FROM MUSIC COMPANIES THAT AREN'T PARTNERS NONE OF THE RECORD COMPANIES INVOLVED WOULD PROVIDE DETAILS ABOUT HOW THE CHANNEL WILL LOOK AND SOUND AND WHO WILL RUN THE PROGRAMMING ONE EXECUTIVE CLOSE TO THE VENTURE SAID THE PARTNERSHIP DEAL WAS SIGNED FRIDAY AND THAT NOBODY HAS BEEN HIRED YET TO BEGIN CREATING THE PROGRAMMING ALTHOUGH THE RECORD COMPANIES CLEARLY HAVE THE DEEP POCKETS TO LAUNCH A NEW MUSIC CHANNEL THERE ARE MANY OBSTACLES AHEAD MTV WHILE THE BIGGEST COMPETITOR ISN'T THE ONLY ONE MOST CABLE SERVICES CARRY HALF A DOZEN MUSIC CHANNELS BUT FEW ARE BELIEVED PROFITABLE LES GARLAND PRESIDENT OF MIAMIBASED VIDEO JUKEBOX NETWORK SAYS HIS COMPANY'S VIDEO CHANNEL REACHES 185 MILLION HOMES AFTER FOUR YEARS BUT IS STILL UNPROFITABLE AT THE SAME TIME COMPETITION IS ESCALATING AND OTHER NEW MUSIC CHANNELS ARE IN THE WORKS INCLUDING SEVERAL FROM MTV ANOTHER MAJOR RECORD COMPANY BERTELSMANN MUSIC GROUP HAS SAID IT WILL LAUNCH A MUSIC CHANNEL THIS YEAR WITH CABLE GIANT TELECOMMUNICATIONS INC EVEN TICKETMASTER ONE OF THE PARTNERS WITH THE RECORD COMPANIES IS SAID TO BE CLOSE TO ANNOUNCING A MUSIC CHANNEL THAT WILL SELL TICKETS AND CONCERT MERCHANDISE THERE IS ALSO A POTENTIAL MAJOR CREDIBILITY PROBLEM FOR THE RECORD COMPANIES HOW WILL THE BIGGEST PURCHASERS OF MUSIC YOUNG PEOPLE IN THEIR TEENS AND TWENTIES REACT TO A NEW CHANNEL THAT IS OWNED BY THE MAJOR RECORD COMPANIES ALTHOUGH INSIDERS AT THE NEW VENTURE SAY THE PARTNERSHIP ENACTED STRICT RULES THAT THE PROGRAMMING BE INDEPENDENT OF PRESSURE FROM OWNERS THE PERCEPTION OF A CAPTIVE SERVICE MAY BE HARD TO SHAKE 9402010139 940201 LADD ACQUIRES PILLIOD HOLDING HIGH POINT NC LADD FURNITURE INC SAID IT COMPLETED ITS ACQUISITION OF PILLIOD CABINET CO THE TRANSACTION VALUED AT 54 MILLION INVOLVED A 239 MILLION CASH PAYMENT FOR ALL STOCK OUTSTANDING OF PILLIOD'S PARENT PILLIOD HOLDING CO LADD SAID IN A NEWS RELEASE THE DEAL ALSO INVOLVED THE REPAYMENT OF ABOUT 299 MILLION OF PILLIOD DEBT AND THE ASSUMPTION OF CERTAIN PILLIOD LIABILITIES PILLIOD IS A FURNITURE MAKER WITH MORE THAN 80 MILLION IN ANNUAL SALES THE PURCHASE AGREEMENT WAS ANNOUNCED IN DECEMBER 9402010138 940201 MARKETING & MEDIA UNITED NEWSPAPERS' ACQUISITION NEW YORK BRITISH PUBLISHING COMPANY UNITED NEWSPAPERS PLC SAID ITS UNITED ADVERTISING PERIODICALS UNIT FINALIZED THE ACQUISITION OF HARMON PUBLISHING CO FOR 100 MILLION HARMON A UNIT OF CLOSELY HELD HARTZ GROUP INC OF NEW YORK PUBLISHES 216 LOCAL REALESTATE AND AUTOMOTIVE ADVERTISING PERIODICALS IN 31 STATES UNITED ADVERTISING IN DALLAS ALSO PUBLISHES ADVERTISING PERIODICALS 9402010137 940201 WHO'S NEWS BARR LABORATORIES INC BARR LABORATORIES INC POMONA NY BRUCE L DOWNEY WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN SUCCEEDING THE GENERIC DRUG COMPANY'S FOUNDER EDWIN A COHEN WHO RETIRES FEB 24 MR DOWNEY 46 WILL CONTINUE AS PRESIDENT A POST HE ASSUMED LAST YEAR MR COHEN SAID HE HAS CONSIDERED CHANGING HIS ROLE AT THE COMPANY FOR SOME TIME AND WILL NOW DO SO BECAUSE OF THE MANAGEMENT TEAM IN PLACE MR COHEN 61 CONTINUES AS A CONSULTANT AND VICE CHAIRMAN 9402010136 940201 WHITMIRE KMART SIGN PACT DUBLIN OHIO WHITMIRE DISTRIBUTION CORP SAID IT SIGNED AN AGREEMENT WITH KMART CORP UNDER WHICH WHITMIRE WILL EXPAND ITS ROLE AS A SUPPLIER OF PRESCRIPTION AND OVERTHECOUNTER PHARMACEUTICAL PRODUCTS TO MOST OF KMART'S 1650 PHARMACIES IN THE US WHITMIRE RECENTLY AGREED TO BE ACQUIRED BY CARDINAL DISTRIBUTION INC FOR ABOUT 303 MILLION IN STOCK WHITMIRE IS OWNED BY MEMBERS OF MANAGEMENT APOLLO INVESTMENT FUND LP AND CHEMICAL VENTURE PARTNERS AN AFFILIATE OF CHEMICAL BANKING CORP 9402010135 940201 TRACKING TRAVEL BY SUSAN CAREY IF A TRIP TO CUBA HAS CROSSED YOUR MIND THINK AGAIN WHILE IT'S LEGAL TO VISIT MOST AMERICANS ARE BARRED FROM SPENDING MONEY THERE ON BUSINESS OR TOURISM THE RESTRICTION PART OF THE US ECONOMIC EMBARGO ON CUBA EXISTS DESPITE THAT COUNTRY'S RECENT EASING OF TRAVEL RESTRICTIONS FOR CUBANS OR CUBANAMERICANS LIVING IN THE US VIOLATORS FACE FINES OF UP TO 50000 AND 10 YEARS IN PRISON THE TREASURY DEPARTMENT ALLOWS A FEW EXCEPTIONS THOUGH THE BIGGEST IS CUBANAMERICANS VISITING CLOSE RELATIVES OTHERS INCLUDE JOURNALISTS SCHOLARS GOVERNMENT OFFICIALS AMERICANS WHOSE TRIPS ARE FULLY FUNDED BY NONAMERICAN INTERESTS AND OTHERS LICENSED FOR THINGS LIKE HUMANITARIAN MISSIONS TO ENSURE COMPLIANCE TREASURY SAYS IT AUDITS TRAVEL AGENTS AND AIRLINE CHARTER OPERATORS THAT ARRANGE TRAVEL TO CUBA TRAVEL AGENTS REPORT THAT SOME AMERICANS FLY TO CUBA VIA CANADA OR THE CARIBBEAN OR SAIL THERE ON PRIVATE YACHTS CUBAN IMMIGRATION OFFICIALS NORMALLY DON'T STAMP THEIR PASSPORTS SO CHANCES OF BEING CAUGHT ARE MINIMAL FROM 1986 UNTIL LAST FALL HAVANA LIMITED CUBANAMERICAN VISITORS TO 100 PER WEEK THE WAITING LIST WAS 30000 REPORTS ONE AIRLINE OFFICIAL TODAY THERE ARE NO LIMITS AND THE REQUIREMENT THAT VISITORS BUY HOTEL PACKAGES HAS BEEN DROPPED HAVANA ALSO AUTHORIZED AN INCREASE IN CHARTER FLIGHTS FROM MIAMI NOW THERE ARE 10 A WEEK AND EVERYTHING IS FULL SAYS VIVIAN MANNERUD PRESIDENT OF AIRLINE BROKERS A CHARTERER MARAZUL TOURS WHICH FLIES TO HAVANA AND SELLS TRAVEL PACKAGES SAYS ITS THRICEWEEKLY CHARTER FLIGHTS ARE JAMMED BOB GUILD A PROGRAM DIRECTOR SAYS THE NUMBER OF NONCUBAN VISITORS WHO FALL UNDER THE TREASURY'S EXEMPTIONS IS UP AS WELL MARAZUL HANDLED 1600 SUCH VISITORS IN 1992 AND 2500 LAST YEAR HE SAYS TRAVELERS GOING ABROAD CAN GET INITIAL ADVICE ON VACCINATIONS THEY'LL NEED FROM TRAVEL AGENTS AND AIRLINE RESERVATION CLERKS BUT PRETRAVEL CARE MAY BE MORE DIFFICULT TO OBTAIN THERE'S NO CERTIFICATION PROCESS FOR TRAVELMEDICINE PHYSICIANS IN THE US SAYS LEONARD MARCUS A NEWTON MASS DOCTOR IN THE FIELD WHICH SPECIALIZES IN PRETRAVEL VACCINATIONS AND TREATMENT OF EXOTIC DISEASES BUT THE AMERICAN SOCIETY FOR TROPICAL MEDICINE & HYGIENE OF WHICH HE IS A MEMBER IS PREPARING A CERTIFICATION EXAM AS WELL AS CURRICULA FOR MEDICAL SCHOOLS HE SAYS AMERICAN EXPRESS AND CARLSON TRAVEL NETWORK TWO BIG TRAVEL AGENCIES SAY AGENTS WITH ACCESS TO BIG COMPUTER RESERVATIONS SYSTEMS CAN GIVE INFORMATION ON DISEASE OUTBREAKS NEEDED VACCINES AND THE LIKE BY TAPPING INTO A DATABASE MOST US AIRLINES' RESERVATIONS STAFF ALSO HAVE ACCESS TO THE DATA BUT WE WOULDN'T BE YOUR PRIMARY SOURCE FOR MEDICAL INFORMATION CAUTIONS AN AMERICAN AIRLINES SPOKESWOMAN US TRAVELERS MIGHT SEEK ADVICE FROM THE INTERNATIONAL TRAVELER HOTLINE 404 3324559 OPERATED BY THE CENTERS FOR DISEASE CONTROL & PREVENTION IN ATLANTA IT GIVES INFORMATION ON FOOD AND WATER PRECAUTIONS GENERAL VACCINATION REQUIREMENTS AND GEOGRAPHICSPECIFIC DISEASES RISKS AND PREVENTION BUT FOR SHOTS TRAVELERS STILL MUST VISIT A PHYSICIAN OR PUBLIC HEALTH CLINIC WHICH MAY NOT HAVE THE VACCINES ON HAND ON THE SOCIETY'S BEHALF DR MARCUS MAINTAINS A LIST OF TRAVELMEDICINE PRACTITIONERS IN NORTH AMERICA WHILE FAR FROM COMPLETE THE LIST HAS GROWN TO 117 NAMES FROM ABOUT 75 THREE YEARS AGO HE SAYS TO OBTAIN IT SEND A LARGE SELFADDRESSED ENVELOPE AND 98 CENTS IN POSTAGE TO TRAVELERS HEALTH & IMMUNIZATION SERVICES 148 HIGHLAND AVE NEWTON MASS 02165 SINCE THE AIR CARRIER ACCESS ACT WENT INTO EFFECT IN 1990 AIRLINES FLYING PLANES OF 30 SEATS OR MORE CAN'T REFUSE TO TRANSPORT DISABLED INDIVIDUALS BUT WITH MORE THAN 300 US AIRPORTS SERVED EXCLUSIVELY BY COMMUTER AIRLINES THE DEPARTMENT OF TRANSPORTATION IS PROPOSING TO AMEND THE ACT TO INCLUDE PLANES OF 19 TO 30 SEATS AS MORE FEEDER PLANES COME INTO THE HUBS IT'S GOING TO BE AN ISSUE SAYS EDNA COOK DIRECTOR OF FLYING WHEELS TRAVEL AN OWATONNA MINN AGENCY THAT ARRANGES TRAVEL FOR THE DISABLED PARALYZED VETERANS OF AMERICA CONCEDES THAT IT WOULDN'T MAKE SENSE TO MANDATE SUCH A CHANGE FOR PLANES OF 18 SEATS OR FEWER BECAUSE THEY'RE TOO SMALL BUT PVA AND OTHER ADVOCACY GROUPS SUPPORT THE DEPARTMENT'S PLANS TO REQUIRE THE PURCHASE OF RAMPS OR HYDRAULIC COMMUTERAIRCRAFT BOARDING LIFTS TO LOAD WHEELCHAIRUSING PASSENGERS INTO 19 TO 70SEAT PLANES IN MOST CASES THESE TRAVELERS ARE PLACED IN NARROW CHAIRS ON THE TARMAC AND LIFTED ONTO SMALL PLANES SOME UNDERSTANDABLY DON'T LIKE THIS APPROACH AND SOME AIRLINE AND AIRPORT WORKERS CAN'T OR WON'T ASSIST AND SOME HANDICAPPED INDIVIDUALS WHO HAVE BEEN DENIED BOARDING ON 19SEAT PLANES HAVE SUED AIRLINES WHILE AIRPORTS AND AIRLINES GENERALLY SUPPORT THE PROPOSAL THE BIG STICKING POINT IS WHO WILL PAY FOR THE BOARDING LIFTS WHICH COST BETWEEN 8000 AND 40000 UNLESS AN AIRLINE IS GOING TO USE IT EXCLUSIVELY THE AIRPORT SHOULD FUND IT SAYS THE REGIONAL AIRLINE ASSOCIATION AIRLINES NOT AIRPORTS ARE RESPONSIBLE FOR HANDLING PASSENGERS RESPONDS THE AIRPORTS COUNCIL INTERNATIONAL THE PLAN WOULD GIVE AIRPORTS AND CARRIERS NINE MONTHS TO DECIDE HOW TO SPLIT THE COST AND THREE YEARS TO INSTALL THE EQUIPMENT HYATT HOTELS IN DOING RESEARCH BEFORE INTRODUCING ROOMS WITH WORKSTATIONS FAX MACHINES AND COMPUTER HOOKUPS FOUND THAT 72 OF ITS BUSINESS GUESTS FEEL MORE PRESSURE TO PRODUCE ON BUSINESS TRIPS THAN THEY DID FIVE YEARS AGO MORE THAN 80 BELIEVE THEY WORK HARDER THAN THEIR BOSSES ON SUCH TRIPS A CONCIERGE AT CHICAGO'S RITZCARLTON HOTEL SAID ONE OF HER MOST UNUSUAL REQUESTS LAST YEAR WAS TO RESERVE A BASKETBALL COURT FOR A COMPANY PRESIDENT 9402010134 940201 PEPPERAND SALT IS HARDLY A SHINING GEM AND LOOK WHAT HAPPENED TO THEM EB DE VITO OF THE CELEBES PREHISTORIC TREES ARE REALLY A BREEZE 9402010133 940201 TECHNOLOGY & HEALTH BRAIN CELLMICROCHIP LINKUP ADVANCES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SAID THEY TOOK A KEY FIRST STEP TOWARD CREATING ELECTRONIC MICROCHIPS THAT USE LIVING BRAIN CELLS THE RESEARCHERS SAID THEY HAD LEARNED HOW TO PLACE EMBRYONIC BRAIN CELLS IN DESIRED SPOTS ON SILICON OR GLASS CHIPS AND THEN INDUCE THE BRAIN CELLS TO GROW ALONG DESIRED PATHS THE SCIENTISTS HOPE TO BE ABLE WITHIN THE NEXT SIX TO 12 MONTHS TO GET THE BRAIN CELLS OR NEURONS TO GROW CONNECTIONS TO EACH OTHER THAT WILL CRUDELY MIMIC THE CIRCUITRY THAT NEURONS FORM IN THE BRAIN I WANT TO EMPHASIZE THIS IS FUNDAMENTAL RESEARCH SAID BIOPHYSICIST DAVID L STENGER OF THE NAVAL RESEARCH LABORATORY IN WASHINGTON WORRIED THAT THE RESEARCH MIGHT BE MISINTERPRETED AS A FLEDGLING EFFORT TO MAKE AN ARTIFICIAL BRAIN WE'RE WORKING WITH SYSTEMS WHERE YOU CAN INVESTIGATE HOW NEURONS WORK HE SAID AS THE RESEARCHERS STUDY HOW THE BIOLOGICAL NEURONS FUNCTION AND CONNECT WITH EACH OTHER ON THE CHIPS THEY SHOULD LEARN HOW TO MAKE BETTER NETWORKS OF ARTIFICIAL NEURONS THAT ELECTRONICS AND COMPUTER DEVELOPERS ARE CURRENTLY TRYING TO ENGINEER DR STENGER EXPLAINED NEVERTHELESS THEIR BASIC RESEARCH COULD LEAD TO SOME USEFUL BIOELECTRONIC DEVICES SAID DR STENGER AND HIS COLLABORATOR CHEMIST JAY HICKMAN OF SCIENCE APPLICATIONS INTERNATIONAL CORP IN MCLEAN VA A HIGHTECH CONTRACTRESEARCH COMPANY FOR EXAMPLE THE PAIR ARE COLLABORATING WITH RESEARCHERS AT STANFORD UNIVERSITY TO DEVELOP A SENSOR COMPOSED OF NERVE CELLS ON A CHIP THAT WOULD SOUND THE ALARM WHEN IT DETECTED A NERVE POISON SUCH AS NERVE GAS USED IN CHEMICAL WARFARE A BIOELECTRONIC VARIATION OF THE CANARYINTHECOAL MINE IDEA DR STENGER SAID IT ALSO MAY BE POSSIBLE TO EVENTUALLY MAKE BIOCHIPS THAT DRUG MAKERS COULD USE TO SEE IF NEW COMPOUNDS MIGHT INTERFERE WITH OR PERHAPS ENHANCE FUNCTIONS LIKE MEMORY OR LEARNING DRS STENGER AND HICKMAN WHO ARE FUNDED LARGELY BY THE OFFICE OF NAVAL RESEARCH ARE DEVELOPING THE BIOCHIPS IN COLLABORATIONS WITH SCIENTISTS AT THE NATIONAL INSTITUTES OF HEALTH AND AT THE UNIVERSITY OF CALIFORNIAIRVINE THE SCIENTISTS' PROGRESS TOWARD BIOCHIPS WAS DISCLOSED IN THE FEBRUARY ISSUE OF SIGNAL MAGAZINE A PUBLICATION OF THE ARMED FORCES COMMUNICATIONS AND ELECTRONICS ASSOCIATION COMPOSED OF ELECTRONICS SPECIALISTS IN THE MILITARY AND ITS PRIVATE CONTRACTORS DRS STENGER AND HICKMAN SAID THEY FOUND A WAY TO GET BRAIN CELLS FROM A RAT EMBRYO TO GROW ON EXACTLY THE RIGHT SPOTS ON A CHIP AND THEN TO GET THESE NEURONS TO SEND OUT CONNECTIONS ALONG DESIRED PATHS TO NEIGHBORING NEURONS THE PAIR HAVE IMPROVED UPON AND GREATLY SIMPLIFIED A TECHNIQUE FIRST DESCRIBED IN 1988 BY RESEARCHERS AT AT&T BELL LABORATORIES A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO THE TWO SCIENTISTS SAID THEY TAKE A CHIP OF SILICON OR GLASS AND COAT IT WITH A SINGLE LAYER OF MOLECULES OF A CHEMICAL THAT PROMOTES THE GROWTH OF NEURONS THEY USED ONE CALLED DETA FOR DIETHYLENETRIAMINE IN THEIR EXPERIMENTS A MICROSCOPIC MASK IS LAID ON THE CHIP THAT SHIELDS BOTH THE SPOTS WHERE THE SCIENTISTS WANT THE NEURONS TO SETTLE AND THE CHANNELS THEY WANT THE NEURONS TO FOLLOW TO MAKE CONNECTIONS AN ULTRAVIOLET LASER REMOVES THE UNSHIELDED DETA AND THE CLEARED SECTIONS ARE FILLED WITH A LAYER OF MOLECULES THAT DISCOURAGE NEURON GROWTH THE NEURONS CAN BE KEPT ALIVE AND FUNCTIONING FOR MONTHS FOR STUDY AND EXPERIMENTATION DR STENGER NOTED AT PRESENT NEUROSCIENTISTS ARE ABLE TO STUDY NETWORKS OF BRAIN CELLS OUTSIDE THE INTACT ANIMAL FOR ONLY A MATTER OF HOURS ALTHOUGH THE RESEARCHERS HOPE IN THE NEXT FEW MONTHS TO SEE NEURONS ON A BIOCHIP BEGIN TO FORM CIRCUITS THE DAY WHEN YOU CAN GET 100 OR SO NEURONS TO FORM CONNECTIONS RELIABLY MAY BE 10 YEARS OR MORE AWAY SAID DR HICKMAN 9402010132 940201 WORLD STOCK MARKETS NIKKEI'S 78 REBOUND INSPIRES BULLS BY QUENTIN HARDY AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE BULLS ARE RUNNING IN TOKYO TRIGGERED BY AN AGREEMENT AIMED AT REFORMING JAPAN'S POLITICAL SYSTEM JAPANESE STOCK PRICES ROCKETED 78 MONDAY THE FOURTHLARGEST GAIN EVER IN PERCENTAGE TERMS THE NIKKEI 225STOCK INDEX CLOSED AT 2022912 UP 147124 ON VOLUME OF ABOUT 800 MILLION SHARES THE HEAVIEST IN NINE MONTHS IN TRADING TUESDAY THE NIKKEI ROSE 22413 POINTS TO CLOSE THE MORNING SESSION AT 2045325 MONDAY'S GAINERS SWAMPED DECLINERS 1109 TO 3 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES JUMPED 10140 OR 66 TO 162922 MONDAY'S BIG RALLY MAY BE MORE THAN ANOTHER FLASH IN THE PAN SO FAR THIS YEAR THE NIKKEI HAS GAINED 161 LEADING MANY JAPANESE TRADERS TO CONCLUDE THAT JAPAN'S FOURYEAR BEAR MARKET IS OVER THE TREND HAS REVERSED SAID SHUNICHI HARI GENERAL MANAGER FOR INTERNATIONAL ADMINISTRATION AT YAMAICHI SECURITIES CO THE MARKET COULD BE AT 25000 BY THE END OF THE YEAR HE PREDICTED HIS VIEW IS SIGNIFICANT BECAUSE JAPANESE INVESTORS TEND TO BE MORE CRITICAL OF THEIR OWN MARKET THAN FOREIGNERS ARE CERTAINLY THERE'S PLENTY OF OPTIMISM OUTSIDE JAPAN WE HAVE BEEN BULLISH ON THE MARKET FOR SOME TIME WE ARE STILL POSITIVE SAID SIMON FRASER A PORTFOLIO MANAGER FOR FIDELITY INVESTMENTS IN LONDON HE AGREES THAT A NIKKEI OF 25000 FROM THESE LEVELS OVER THE NEXT 12 MONTHS IS DOABLE FIDELITY IS SO POSITIVE THAT IT IS ABOUT TO LAUNCH A NEW JAPANESE CLOSEDEND FUND FOR EUROPEAN INVESTORS PATRICK GIFFORD A DIRECTOR AT FLEMING INVESTMENT MANAGEMENT LTD IN LONDON NUMBERS HIMSELF AMONG THE BULLS TOO LAST DECEMBER FLEMING SET A 12MONTH TARGET FOR THE NIKKEI OF 24000 WE DON'T SEE ANY HARD EVIDENCE THAT WE SHOULD CHANGE THAT SAID MR GIFFORD POLITICAL REFORM BY ITSELF ISN'T ENOUGH TO SPUR STOCKS SHARPLY HIGHER RATHER IT SETS THE STAGE FOR THE GOVERNMENT TO TURN ITS ATTENTION TO A MAJOR SPENDING PACKAGE AND TAX CUTS AIMED AT STIMULATING JAPAN'S MORIBUND ECONOMY SUCH A STIMULUS PACKAGE VALUED AT MORE THAN 14 TRILLION YEN 1272 BILLION IS EXPECTED TO BE ANNOUNCED THURSDAY BUT EVEN AMID THE RALLY SOME SKEPTICS WARN THAT THE PLANNED STIMULUS ISN'T LIKELY TO TRANSLATE QUICKLY INTO HIGHER CORPORATE EARNINGS AND THEY SUGGEST THAT THE TOKYO MARKET MAY BE HARDPRESSED TO SUSTAIN THE PACE OF RECENT GAINS THERE ARE NO NEGATIVE FACTORS IN THE MARKET EXCEPT THE ECONOMY AND CORPORATE EARNINGS SAID SHIGERU AKIBA DIRECTOR OF YEN EQUITY TRADING AT UBS SECURITIES LTD THERE'S STILL PLENTY OF BAD ECONOMIC NEWS AHEAD FOR JAPAN THE NATION'S ECONOMY IS EXPECTED TO SEE LESS THAN 1 GROWTH FOR THE FISCAL YEAR ENDING MARCH 31 AND CORPORATE EARNINGS ARE EXPECTED TO DECLINE FOR THE FOURTHSTRAIGHT YEAR AND EARLIER EFFORTS TO STIMULATE THE ECONOMY HAVE BEEN LESS THAN SUCCESSFUL THE PACKAGE TO BE ANNOUNCED THIS WEEK WILL BE THE FOURTH OF ITS KIND IN 20 MONTHS WITH LITTLE DISCERNABLE IMPROVEMENT IN THE JAPANESE ECONOMY FROM THE PREVIOUS THREE WORSE FROM THE MARKET'S PERSPECTIVE MANY JAPANESE COMPANIES PARTICULARLY JAPAN'S BATTERED BANKS BADLY NEED PROFITS SO THEY'RE LIKELY TO DISGORGE SOME OF THEIR MASSIVE STOCK HOLDINGS BEFORE THE END OF THE FISCAL YEAR THEN THERE'S THE QUESTION OF WHO WILL BUY INTO THIS RALLY FOREIGN INVESTORS WITH AN ESTIMATED 9 BILLION IN NET PURCHASES IN JANUARY HAVE LED THE BUYING SO FAR INCLUDING ON MONDAY NOW SOME ARE READY TO TAKE A BREAK WE THINK 17000 TO 20000 IS THE RANGE FOR THE NIKKEI FOR THE NEXT FEW MONTHS SAID JOHN ALKIRE PRESIDENT OF MORGAN STANLEY ASSET MANAGEMENT IN TOKYO SOME MONEY MANAGERS ARE EVEN MORE PESSIMISTIC I CAN'T SEE WHY ANYBODY IS GETTING OVERLY EXCITED ABOUT JAPAN RIGHT NOW SAID FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT NV IN AMSTERDAM ECONOMIC FUNDAMENTALS AS FAR AS WE ARE CONCERNED HAVEN'T CHANGED NOTING THE RELUCTANCE OF MANY JAPANESE INVESTORS TO INVEST IN THEIR OWN STOCK MARKET HE SAID THE JAPANESE WILL KEEP SELLING AND IT WILL REACH A POINT WHERE THE FOREIGNERS ARE UNWILLING OR UNABLE TO COMMIT ANY MORE MONEY TO JAPANESE STOCKS AT THAT POINT HE PREDICTED YOU COULD GET A REAL TUMBLE BUT OTHERS ARGUE THAT THERE'S STILL PLENTY OF FOREIGN CASH WAITING TO GET INTO THE JAPANESE MARKET MOST US BRITISH AND EUROPEAN INSTITUTIONS ARE UNDERWEIGHTED IN JAPANESE SHARES COMPARED WITH MAJOR INDUSTRY BENCHMARKS THE GREATEST POTENTIAL FOR A SUSTAINED RALLY RESTS WITH JAPANESE INVESTORS THEMSELVES THERE'S 675 TRILLION OF CASH ON THE SIDELINES IN JAPAN SAID MICHAEL HOWELL HEAD GLOBAL STRATEGIST FOR BARING SECURITIES LTD IN LONDON FOREIGN BUYERS WERE JOINED MONDAY BY JAPANESE RETAIL CUSTOMERS AND MUTUAL FUNDS BUT TRADERS SAID JAPANESE CORPORATIONS AND FINANCIAL INSTITUTIONS HELD BACK THOSE BIG STOCKHOLDERS ARE LIKELY TO BE SELLERS BEFORE THEY'RE BUYERS SAID MR ALKIRE AFTER THE MARKET CLOSES THEY'LL MEET AND DECIDE WHAT TO SELL HE SAID OPTIMISTS COUNT ON THE PACKAGE TO SOLVE THE BADDEBT PROBLEMS IN JAPAN'S FINANCIAL SECTOR AND REVIVE A MORIBUND REALESTATE MARKET PEOPLE ARE ALSO LOOKING FOR A TAX CUT OF AS MUCH AS 73 BILLION AS PART OF THE PACKAGE BUT IT ISN'T CLEAR HOW MUCH NEW MONEY THE TAX CUT WILL PUT IN THE POCKETS OF THE AVERAGE JAPANESE OR WHETHER THE MONEY WOULD BE SPENT RATHER THAN SAVED FURTHERMORE THERE'S LITTLE SIGN THE PACKAGE WILL CONTAIN ANY REAL STRUCTURAL CHANGES FOR THE FINANCIAL SYSTEM PEOPLE WONDER IF 20000 IS SUSTAINABLE FOR THE NIKKEI SAID YASUFUMI OHIGASHI DEPUTY GENERAL MANAGER OF EQUITY SALES AT NOMURA SECURITIES CO THE BUSINESS FORECASTS ARE STILL NEGATIVE BUT EXPECTATIONS ARE STARTING TO COME OUT THAT MAYBE NEXT YEAR WON'T BE SO BAD AS EQUITY MARKETS RALLIED WORLDWIDE LONDON SHARES GAINED 13 TO A RECORD FINISH AFTER A POWERFUL PUSH FROM A COMBINATION OF BRITISH AND GLOBAL FACTORS FRANKFURT STOCKS JUMPED 21 PROPELLED BY THE AUTO SECTOR EQUITIES ALSO LOGGED NEW HIGHS IN PARIS SYDNEY MADRID STOCKHOLM BRUSSELS AND MEXICO CITY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11860 UP 347 REFLECTING HIGHER MARKETS IN ALL REGIONS SECURITIES BROKERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15774 UP 1444 OR 10 WITH DAIWA SECURITIES OF JAPAN POSTING A 19 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 21872 DOWN 104 OR 05 WITH KUMPULAN GUTHRIE OF MALAYSIA SLIDING 43 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RACED UP 444 POINTS TO 34918 A NEW HIGH AND THE SESSION'S PEAK THE FT 30STOCK INDEX SOARED 374 POINTS OR 14 TO 26773 VOLUME WAS 9892 MILLION SHARES COMPARED WITH 114 BILLION SHARES IN THE PREVIOUS SESSION STRONG GAINS IN ASIAN MARKETS AND A WALL STREET RALLY FRIDAY IGNITED STOCKS IN LONDON WHERE INVESTORS WERE RELIEVED THAT POSITIVE US INFLATION DATA INDICATED REMOVAL OF A POTENTIAL DRAG ON THE GLOBAL ECONOMY NEWS OF A TAKEOVER BY BAYERISCHE MOTOREN WERKE OF GERMANY OF ROVER CARS FROM BRITISH AEROSPACE FOR 800 MILLION 112 BILLION LIFTED HOPES FOR MORE MERGERS AND ACQUISITIONS OTHER POSITIVE FACTORS INCLUDED A GERMAN CENTRAL BANK MEETING THIS WEEK WHEN INTEREST RATES COULD BE LOWERED A CUT IN BELGIAN RATES YESTERDAY ALSO HELPED FOCUS ATTENTION ON THE EUROPEAN RATE OUTLOOK AND THE LONDON STOCK AND BOND MARKETS WERE CHEERED BY A SMALLERTHANEXPECTED INCREASE IN BRITISH MONEYSUPPLY GROWTH IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 4398 POINTS TO 217745 ALSO THE INTRADAY HIGH WITH ADVANCING ISSUES OUTNUMBERING RETREATING ISSUES 28 TO 1 THE INDEX CHALKED UP ABOUT HALF THE DAY'S GAIN IN LATE TRADING ON THE NEWS OF BMW'S ROVER TAKEOVER WHICH ANALYSTS SAID WOULD LEAD TO A DOUBLING OF THE GERMAN AUTO MAKER'S EUROPEAN MARKET SHARE BMW SHARES ROCKETED UP 5650 MARKS OR 83 TO 73950 MARKS 42455 BANKING SHARES ALSO OUTPACED THE MARKET ATTRIBUTED TO THE GERMAN CENTRAL BANK'S LOWERING OF BANKS' MINIMUM RESERVE REQUIREMENT WHICH AMOUNTED IN EFFECT TO AN INTERESTRATE CUT IN PARIS STOCKS HIT A NEW RECORD SURPASSING THE MARK SET JAN 11 THE EXCHANGE WAS SWEPT ALONG BY OPTIONS EXPIRATIONS NEW YORK STOCKS' SURGE FRIDAY AND REACTION TO A FRENCH ECONOMIC STIMULUS PLAN INCLUDING MEASURES TO HELP THE AUTO INDUSTRY BY STIMULATING CONSUMER AND CORPORATE CAR PURCHASES IN AMSTERDAM SHARES RALLIED BROADLY ON BARGAIN HUNTING AND COVERING OF SHORT OR OVERSOLD POSITIONS SPARKED BY ADVANCES IN OVERSEAS MARKETS A STRONGER US DOLLAR IN CURRENCY DEALINGS AND EXPECTATIONS THAT INTEREST RATES IN THE NETHERLANDS AND GERMANY MAY DROP SOON IN MILAN THE INDEX THAT INCLUDES ALL ELECTRONICALLY TRADED SHARES SOARED 35 AS SELLERS COULDN'T BE FOUND AND ENORMOUS LIQUIDITY POURED INTO THE MARKET STIMULATED BY LOTS OF CASH IN MUTUAL FUNDS LOW RATES ON GOVERNMENT SECURITIES AND CONFIDENCE ABOUT ITALY'S POLITICAL SITUATION IN ZURICH THE MARKET CLIMBED 12 AS BLUE CHIPS SPURRED A RESUMED RALLY HELPED BY PROSPECTS FOR LOWER SWISS INFLATION IN MADRID STOCKS ROSE TO THE SECOND RECORD IN A ROW BOOSTED BY OTHER EXCHANGES' SHARP GAINS AND BY EXPECTATIONS OF INTERESTRATE REDUCTIONS AS WELL AS LATE COVERING OF BORROWED POSITIONS SOLD SHORT ON BETS OF PROFITING BY REPLACING THE STOCK FOLLOWING PRICE DECLINES IN STOCKHOLM PASSING THE ALLTIME HIGH OF THE PREVIOUS SESSION STOCKS JUMPED 21 IN EXTREMELY HEAVY TRADING PARTLY ON EXPECTATIONS OF AUTOSECTOR STRENGTH IN BRUSSELS SHARES ROSE TO A RECORD FOR THE THIRDCONSECUTIVE SESSION DRIVEN BY A STRONGER BELGIAN FRANC AND THE BELGIAN RATE CUTS IN MEXICO CITY STOCKS RALLIED 14 TO A THIRD CONSECUTIVE RECORD AS FOREIGN INVESTORS CONTINUED TO INVEST FRESH CASH ESPECIALLY IN TELECOMMUNICATIONS SHARES IN SYDNEY SHARE PRICES SOARED 23 TO A NEW CLOSING HIGH BREAKING THE RECORD SET SEPT 21 1987 ON BUYING BY OVERSEAS INVESTORS THE TOKYO MARKET'S SURGE AND POSITIVE NEWS FRIDAY ABOUT STRONG US ECONOMIC GROWTH AND LOWERTHANEXPECTED AUSTRALIAN INFLATION IN HONG KONG THE BENCHMARK INDEX SHOOK OFF NEWS THAT BIG BANKS WOULD MAKE RESIDENTIAL PROPERTY INVESTMENT MORE EXPENSIVE AND ENDED WITH A GAIN OF ALMOST 1 IN LIGHT TURNOVER AFTER TRADING ENDED FRIDAY HONG KONG BANKS UNVEILED TOUGHER RESTRICTIONS IN MORTGAGELENDING POLICIES BUT THE TERMS WERE AS EXPECTED AND ALREADY BUILT INTO SHARE PRICES HEADING OFF BEARISH REACTION MONDAY STOCKS INITIALLY JUMPED BUOYED BY BUYING BY OVERSEAS INVESTORS AND BY TOKYO'S MARKET SURGE THEN FELL ON PROFITTAKING BEFORE RISING AGAIN IN SINGAPORE SHARES CLIMBED 17 ON STEADY BUYING DESPITE SOME PROFITTAKING BY INDIVIDUALS AND SOME SELLING BY JAPANESE INSTITUTIONS AHEAD OF THEIR MARCH 31 FISCAL YEAR END IN KUALA LUMPUR PRICES ADVANCED 16 BUT TRADING WAS MODERATE AS RETAIL INVESTORS REDUCED THEIR EXPOSURE AHEAD OF MARKET CLOSURES FOR THE LUNAR NEW YEAR HOLIDAY IN TAIPEI EQUITIES ROCKETED UP FROM THE OPENING AND ENDED 16 HIGHER IN MODERATE TURNOVER AS INVESTORS' CONFIDENCE WAS BOOSTED BY NEWS THAT THE TAIWAN GOVERNMENT PLANS TO INCREASE THE LIMIT ON FOREIGN INVESTMENT FUNDS AND BY THE GOVERNING PARTY'S SOLID VICTORY IN SATURDAY'S ELECTIONS SIGNALING FURTHER ECONOMIC GROWTH IN WELLINGTON STOCKS SURGED 26 PACED BY FOREIGN INVESTORS THE MARKET WAS BUOYED BY NEWS OF STRONG US GROWTH A BOOMING AUSTRALIAN MARKET AND POSITIVE SENTIMENT ABOUT THE NEW ZEALAND ECONOMY BUT IN MANILA SHARES SLUMPED 19 DECLINING FOR THE SECOND STRAIGHT SESSION WITH SOME BLUE CHIPS UNDER PRESSURE 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 9402010131 940201 TECHNOLOGY & HEALTH USE OF HAIR DYES ISN'T FOUND TO BOOST THE RISK OF CANCER BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THE USE OF PERMANENT HAIR DYES DOES NOT INCREASE THE RISK OF CANCER ACCORDING TO A LARGE SEVENYEAR STUDY BY THE AMERICAN CANCER SOCIETY THE STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE WAS DESIGNED TO ADDRESS CONCERNS RAISED BY SEVERAL STUDIES OVER THE YEARS THAT SUGGESTED THAT WOMEN WHO REGULARLY DYE THEIR HAIR RAISED THEIR CHANCES OF DEVELOPING CERTAIN CANCERS BUT THE NEW STUDY INVOLVING MORE THAN A HALFMILLION WOMEN BETWEEN 1982 AND 1989 FOUND NO LINK BETWEEN HAIRDYE USE AND CANCER OF THE LIVER BREAST LUNG BLADDER CERVIX OR BLOODFORMING CELLS ONLY PROLONGED USE OF BLACK HAIR DYE WAS TIED TO TWO UNCOMMON CANCERS THE RESEARCHERS SAID THE STUDY WHICH WHEN FULLY COMPLETED WILL INVOLVE INTERVIEWS WITH MORE THAN ONE MILLION WOMEN SPECIFICALLY FOCUSED ON USE OF PERMANENT HAIR DYES WHICH ACCOUNT FOR THE BULK OF THE COMMERCIAL HAIRDYE MARKET THE BIGGESTSELLING BRAND OF PERMANENT HAIR DYE IS THE NICE N' EASY BRAND SOLD BY BRISTOLMYERS SQUIBB CO'S CLAIROL UNIT FOR YEARS RESEARCHERS HAVE WONDERED IF HAIR DYES CONTRIBUTED TO THE RISING INCIDENCE OF CERTAIN CANCERS AMONG WOMEN ESPECIALLY SINCE SOME HAIRDYE INGREDIENTS DAMAGED HUMAN CELLS IN TESTTUBE STUDIES AND IN ANIMALS DESPITE A LINGERING CLOUD OF CONCERN OVER THE PRODUCTS HAIRDYE USE HAS GROWN SHARPLY IN RECENT YEARS REFLECTING THE AGING OF THE BABYBOOM GENERATION IN THE 12 MONTHS ENDING LAST NOVEMBER HAIRCOLOR PRODUCT SALES IN THE US ROSE 14 TO 7303 MILLION ACCORDING TO INFORMATION RESOURCES INC THE NEW RESEARCH LED BY MICHAEL J THUN OF THE AMERICAN CANCER SOCIETY FOUND THAT WOMEN IN THE STUDY WHO USED HAIR DYES ACTUALLY HAD A SLIGHTLY LOWER RISK OF ALL FATAL CANCERS COMPARED WITH WOMEN WHO NEVER USED HAIR DYE AT ALL THE RESEARCHERS DID FIND THAT WOMEN WHO USED BLACK HAIR DYE FOR AT LEAST 20 YEARS INCREASED THEIR RISK OF DEVELOPING TWO UNCOMMON CANCERS NONHODGKIN'S LYMPHOMA AND MULTIPLE MYELOMA THE STUDY'S AUTHORS SAID ONLY FIVE WOMEN IN THE STUDY DEVELOPED THE CANCERS BUT BECAUSE PREVIOUS STUDIES HAD FOUND A LINK WITH CANCER AND THE BLACK HAIR DYES THE RESEARCHERS SUGGESTED THAT CERTAIN INGREDIENTS IN THESE TYPES OF DYES BE ELIMINATED OR THAT THE PRODUCTS CONTAIN LABELS WARNING AGAINST PROLONGED USE 9402010130 940201 TECHNOLOGY & HEALTH AMERICA ONLINE INC WILL BRING POTATOES RIGHT TO YOUR COUCH SERVICE JOINS UP WITH SHOPPERS EXPRESS TO OFFER GROCERY DELIVERY BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL USERS OF THE AMERICA ONLINE COMPUTER SERVICE WILL SOON HAVE ACCESS TO AN OLDFASHIONED KIND OF CHIP THE POTATO CHIP AMERICA ONLINE INC IN VIENNA VA SAID IT WILL TEAM UP WITH SHOPPERS EXPRESS INC TO ALLOW SUBSCRIBERS TO ORDER SNACKS GROCERIES AND DRUGS VIA COMPUTER BY THE SPRING THE MOVE WHICH COULD GIVE RECLUSIVE PERSONALCOMPUTER USERS YET ANOTHER REASON TO AVOID THE GREAT OUTDOORS COMES DESPITE AMERICA ONLINE'S SEVERAL FAILED ATTEMPTS TO LINK PC USERS TO PERISHABLES SUBSCRIBERS IN MOSTLY URBAN MARKETS WILL BE ABLE TO PLACE ORDERS FOR SAMEDAY DELIVERY SHOPPERS EXPRESS WHICH ALREADY PROVIDES PHONE AND FAX ORDERING TO NEARLY 40 RETAIL CHAINS INCLUDING SAFEWAY INC AND WINNDIXIE STORES INC WILL PROCESS THE ORDER AND DELIVER IT FOR WHAT AMOUNTS TO A HEFTY TIP A FEE OF 5 TO 10 USERS WILL PUNCH IN THEIR ZIP CODE AND SHOPPERS EXPRESS WILL DETERMINE THE RETAIL MARKET TO SERVICE THE DELIVERY IN THE PAST LARGESCALE SHOPPING SERVICES HAVE FAILED BECAUSE OF HIGH COSTS AND CUSTOMERS' UNWILLINGNESS TO GIVE UP THE TOUCH THE FEEL THE SMELL OF BUYING A BAG OF BARBECUE CHIPS OR A CUT OF BEEF SAYS BRIAN EK SPOKESMAN FOR AN AMERICAN ONLINE RIVAL PRODIGY SERVICES CO A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO PRODIGY OPERATED A GROCERYSHOPPING SERVICE FOR THREE YEARS SHUTTING IT DOWN IN 1991 MAINTAINING THE DATABASES AND UPDATING PRICE CHANGES ON A WEEKLY BASIS WAS VERY MANPOWERINTENSIVE MR EK EXPLAINS BUT INDUSTRY OFFICIALS EXPECT FEWER PROBLEMS WITH THE NEW SERVICE SHOPPERS EXPRESS RATHER THAN AMERICA ONLINE WILL MAINTAIN THE DATABASE AND THE BETHESDA MD SHOPATHOME COMPANY WON'T BOTHER TO ENTER PRICE CHANGES ON A WEEKLY BASIS IN FACT SHOPPERS EXPRESS WON'T OFFER PRICES AT ALL THE COMPANY SAYS ITS FAX AND PHONE ORDERS HAVE GROWN ALTHOUGH CUSTOMERS CAN'T GET PRICES CUSTOMERS ARE MUCH MORE SERVICECONSCIOUS THAN PRICE CONSCIOUS SAYS KARA KERNAN VICE PRESIDENT OF SHOPPERS EXPRESS BUT SHE ADDS IF IT'S AN ISSUE WE WILL PUT IN AN ESTIMATED COST PER ITEM USERS OF THE SERVICE WILL HAVE TO PICK THEIR TOMATOES ON FAITH AMERICA ONLINE'S NEW LISTINGS WILL OFFER UP WORDS ONLY NO PICTURES 9402010129 940201 AIRLINES RECORD NO DEATHS BUT ACCIDENT RATE RISES WASHINGTON MAJOR US AIRLINES RECORDED NO PASSENGER FATALITIES IN 1993 BUT THEY EXPERIENCED MORE MINOR ACCIDENTS THAN IN 1992 THE NATIONAL TRANSPORTATION SAFETY BOARD SAID THE SAFETY BOARD SAID THE FATALITY RATE FOR MAJOR AIRLINES WAS THE LOWEST SINCE 1980 COMMUTER AIRLINES HAD FOUR FATAL ACCIDENTS INCLUDING A CRASH THAT KILLED 18 IN MINNESOTA THAT COMPARES WITH SEVEN FATAL ACCIDENTS LAST YEAR PRIVATELY OWNED PLANES HAD 385 FATAL ACCIDENTS THE LOWEST LEVEL IN AT LEAST 10 YEARS THE AIR TRANSPORT ASSOCIATION WHICH REPRESENTS LARGE AIRLINES SAID THE OUTSTANDING 1993 SAFETY RECORD REFLECTS THE INDUSTRY'S LONGTERM COMMITMENT TO SAFETY THE GROUP COMPLAINED THAT CRITICS ARE RAISING THE SAFETY BUGABOO AS A WAY TO SCARE THE PUBLIC A REFERENCE TO CONGRESSIONAL CRITICS OF THE CLINTON ADMINISTRATION'S PLAN TO CREATE A GOVERNMENT CORPORATION TO RUN THE AIR TRAFFICCONTROL SYSTEM STILL WHILE THE DEATH RATE ON MAJOR AIRLINES DECLINED FROM THE 31 PASSENGER DEATHS IN 1992 THE ACCIDENT RATE ROSE THE SAFETY BOARD SAID MAJOR AIRLINES HAD 23 ACCIDENTS WITHOUT PASSENGER FATALITIES IN 1993 UP FROM 12 IN 1992 9402010128 940201 WHO'S NEWS LEHMAN WILL LAUNCH DERIVATIVES UNIT TARTAGLIA TO GET RESEARCH ANALYSIS POST BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS INC SAID IT WILL LAUNCH A NEW DERIVATIVES UNIT AND IS EXPECTED TO ANNOUNCE TODAY THAT NUNZIO TARTAGLIA WILL SERVE AS THE HEAD OF EQUITY DERIVATIVES RESEARCH AND QUANTITATIVE ANALYSIS LEHMAN IS A UNIT OF AMERICAN EXPRESS CO BUT NOT FOR MUCH LONGER THE ESTABLISHMENT OF THE DERIVATIVES SUBSIDIARY AND THE HIRING OF MR TARTAGLIA COME IN THE WAKE OF AMERICAN EXPRESS'S ANNOUNCEMENT LAST WEEK THAT IT WAS GETTING OUT OF THE SECURITIES BUSINESS IT WILL PUMP 109 BILLION INTO LEHMAN AND SPIN IT OFF AS A PUBLIC COMPANY IN THE FORM OF A DIVIDEND TO AMERICAN EXPRESS SHAREHOLDERS SOMETIME IN LATE APRIL OR MAY MR TARTAGLIA WILL WORK WITH THE DERIVATIVES UNIT BUT WILL BE EMPLOYED BY THE PARENT COMPANY THE 57YEAROLD FORMER ASTROPHYSICIST AND JESUIT SEMINARIAN WAS ONE OF THE HANDFUL OF NOW WELLKNOWN ACADEMICS AND SCIENTISTS FIRST RECRUITED BY INVESTMENT BANKS IN THE 1980S TO HELP DESIGN COMPLEX SECURITIESTRADING STRATEGIES HE JOINS LEHMAN FROM HIS POSITION AS A PORTFOLIO MANAGER AT BOSTONBASED HARVARD MANAGEMENT CO WHICH MANAGES HARVARD UNIVERSITY'S ENDOWMENT BUT HIS CAREER HAS TAKEN HIM FROM BELL LABORATORIES TO DREXEL BURNHAM LAMBERT INC TO MORGAN STANLEY & CO WHERE HE RAN ITS PROFITABLE BLACK BOX THE ANALYTICAL PROPRIETARY TRADING UNIT UNTIL SEPTEMBER 1989 THEN HE BRIEFLY RAN HIS OWN HEDGE FUND DERIVATECH BEFORE MOVING TO HARVARD MANAGEMENT THIS IS LIKE BR'ER RABBIT BACK IN THE BRIAR PATCH SAID MR TARTAGLIA I LOVE IT DERIVATIVES IS A VERY EXCITING AREA RIGHT NOW HE SAID AND LEHMAN'S GOAL OF CLOSELY INTEGRATING ITS EQUITY DERIVATIVES AND QUANTITATIVE ANALYSIS DIVISIONS MADE THE POSITION VERY ATTRACTIVE TO HIM THE TRIPLEA RATING FOR LEHMAN'S DERIVATIVES UNIT IS IMPORTANT BECAUSE THE DERIVATIVES MARKET HAS BECOME INCREASINGLY CREDITSENSITIVE MANY MULTINATIONAL COMPANIES WON'T DEAL WITH WALL STREET FIRMS WITH BELOW A DOUBLEA RATING SWAP DEALERS WITH TRIPLEA RATINGS HAVE A TREMENDOUS ADVANTAGE OVER OTHER WALL STREET DEALERS WITH LOWER RATINGS 9402010127 940201 HOUSE PANEL TO STUDY FED'S CLOUT WITH BANKS OVERSEAS WASHINGTON JP MORGAN & CO'S INVESTMENT IN A FAILED SPANISH BANK HAS SPURRED A HOUSE BANKING COMMITTEE STUDY OF THE FEDERAL RESERVE BOARD'S REGULATION OF OVERSEAS ACTIVITIES OF US BANKS COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS ASKED ALAN GREENSPAN FED CHAIRMAN A SERIES OF QUESTIONS ABOUT THE FED'S OVERSIGHT OF MORGAN'S PURCHASE OF AN INTEREST IN BANCO ESPANOL DE CREDITO OR BANESTO THROUGH A CLOSEDEND INVESTMENT FUND CALLED CORSAIR PARTNERSHIP LP SEVERAL MONTHS AFTER THE PARTNERSHIP INVESTED 166 MILLION IN BANESTO THE BANK WAS SEIZED IN DECEMBER BY THE CENTRAL BANK OF SPAIN IN ADDITION THE PANEL ASKED THE FED FOR INFORMATION ABOUT HOW IT REGULATES BANKRUN VULTURE FUNDS WHICH INVEST IN SICK COMPANIES THAT ARE EXPECTED TO GET WELL AND PROSPER THE PANEL IS CONCERNED THAT SUCH FUNDS MAY BECOME VEHICLES FOR BANK PURCHASES OF LARGE BLOCKS OF SHARES IN BOTH FINANCIAL AND NONFINANCIAL COMPANIES 9402010126 940201 INTERNATIONAL SUIT SETTLEMENT IS REACHED IN MAXWELL PENSION CASE LONDON TRUSTEES OF A PENSION FUND PLUNDERED BY THE LATE BRITISH PUBLISHER ROBERT MAXWELL ACCEPTED A 32 MILLION 478 MILLION SETTLEMENT OF THEIR LAWSUIT AGAINST THREE MAXWELLCOMPANY FINANCIAL ADVISERS AS EXPECTED THE SETTLEMENT BY LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO CAPELCURE MYERS CAPITAL MANAGEMENT LTD AND INVESCO PLC WAS ANNOUNCED MONDAY ON THE EVE OF THE TRIAL HERE UNDER THE SETTLEMENT THE THREE DEFENDANTS DIDN'T ADMIT ANY WRONGDOING THE LAWSUIT BY PENSIONFUND TRUSTEES OF MIRROR GROUP PLC A FORMER MAXWELL COMPANY HAD CHARGED THE THREE FIRMS WITH PARTICIPATING IN IMPROPER SECURITIES TRANSACTIONS ORDERED BY MR MAXWELL IN A VAIN EFFORT TO PROP UP HIS CRUMBLING PUBLISHING EMPIRE SINCE MR MAXWELL'S 1992 DEATH BRITISH POLICE HAVE CHARGED THE LATE PUBLISHER WITH PLUNDERING AT LEAST 300 MILLION FROM VARIOUS EMPLOYEE PENSION FUNDS THE MIRROR GROUP FUND'S TRUSTEES ALLEGE MR MAXWELL AND ASSOCIATES TOOK 88 MILLION FROM THEIR FUND PLUS ANOTHER 150 MILLION FROM A RELATED FUND YESTERDAY'S SETTLEMENT WAS FOR THE THREE FINANCIAL FIRMS' 50 MILLION SHARE OF THE 88 MILLION MIRRORFUND CLAIM AS PART OF THE SETTLEMENT THE TRUSTEES DROPPED THEIR CLAIM FOR THE ADDITIONAL 150 MILLION 9402010125 940201 MCDERMOTT UNIT GETS JOB NEW ORLEANS A UNIT OF MCDERMOTT INTERNATIONAL INC SIGNED A CONTRACT FOR ABOUT 45 MILLION OF CONSTRUCTION AT A POWER STATION IN REESEDALE PA 50 MILES NORTHEAST OF PITTSBURGH BABCOCK & WILCOX CONSTRUCTION CO WILL DEMOLISH AND REBUILD TWO BOILERS AT WEST PENN POWER CO'S ARMSTRONG STATION UNITS 1 AND 2 THE CONSTRUCTION COMPANY IS A UNIT OF BABCOCK & WILCOX CO WHICH ITSELF IS A SUBSIDIARY OF MCDERMOTT 9402010124 940201 STEVENS GRAPHICS CREDIT PACT FORT WORTH TEXAS STEVENS GRAPHICS CORP SAID ITS SENIOR LENDERS AGREED TO EXTEND ITS CURRENT 18 MILLION REVOLVING LENDING AGREEMENT UNTIL APRIL 30 WHILE THE MAKER OF PRINTING EQUIPMENT TRIES TO NEGOTIATE A NEW AGREEMENT WITH ITS BANKERS THE CURRENT AGREEMENT WAS TO HAVE EXPIRED YESTERDAY 9402010123 940201 PRICING HEALTH CARE GERMANY IS NOT A MODEL BY WILFRIED PREWO WE HAVE A LOT WE CAN LEARN FROM THE GERMANS PRESIDENT CLINTON SAID RECENTLY TRYING TO SELL HIS HEALTH CARE PLAN THE GERMANS ARE ABLE TO PROVIDE A VERY HIGHQUALITY HEALTH CARE SYSTEM AT A MUCH LOWER COST THAN WE ARE BECAUSE THEY HAVE MUCH MORE DISCIPLINE IN THE WAY IT'S ORGANIZED AND FINANCED IN AN ADDRESS TO THE NATIONAL GOVERNORS ASSOCIATION YESTERDAY GERMAN CHANCELLOR HELMUT KOHL SAID THAT IN THE RUNUP TO AMERICA'S HEALTH CARE REFORM THERE WAS AN INTENSE EXCHANGE OF OPINIONS BETWEEN AMERICAN AND GERMAN EXPERTS ON THE SURFACE THE GERMAN SYSTEM DOES INDEED LOOK GOOD IT INSURES SOCIETY COMPREHENSIVELY AND GIVES INDIVIDUALS QUALITY COVERAGE THAT IS PERMANENT AND PORTABLE FROM JOB TO JOB GERMANY SPENDS ABOUT 106 OF ITS GROSS DOMESTIC PRODUCT ON HEALTH AS OPPOSED TO ABOUT 14 SPENT IN THE US BUT SIMPLE COMPARISONS ARE MISLEADING GERMANY AND THE US DIFFER GREATLY IN ASPECTS NOT CONTROLLED BY DOCTORS AND HOSPITALS SUCH AS CRIMERELATED INJURIES MALPRACTICE INSURANCE AND NURSING CARE FOR THE ELDERLY IT IS WORTH NOTING TOO THAT THE COSTS OF GERMANY'S PLAN HAVE RISEN BY A SHARP 23 AFTER INFLATION OVER THE PAST THREE YEARS IT PAYS TO TAKE A GOOD LOOK AT THE GERMAN SYSTEM BEFORE PRESCRIBING IT IN THE US THE SIMILARITIES BETWEEN THE CLINTON PLAN AND THE GERMAN SYSTEM ARE STRIKING THE PRESIDENT WANTS UNIVERSAL COVERAGE GERMANY HAS NEARLY ACHIEVED THAT GERMAN LAW MANDATES THAT EVERYONE ENROLL IN THE HEALTH INSURANCE SYSTEM WITH THE IMPORTANT EXCEPTION OF HIGHER INCOME EARNERS MAKING MORE THAN 3300 A MONTH THE OPTOUT INCOME LEVEL IS SET RELATIVELY HIGH SO THAT ABOUT 74 OF GERMANS MUST JOIN ANOTHER 14 VOLUNTARILY JOIN OR STAY IN THE STATUTORY HEALTH SYSTEM ALTHOUGH THEIR INCOME HAS RISEN BEYOND THE CUTOFF ABOUT 10 HIGHERINCOME EMPLOYEES SELFEMPLOYED HAVE PRIVATE INSURANCE AND FEWER THAN 1 HAVE NO INSURANCE REGIONAL HEALTH ALLIANCES A BIG CLINTON IDEA ARE THE CORNERSTONE OF THE GERMAN SYSTEM COMPANIES WITH MORE THAN 1000 EMPLOYEES 5000 IN THE CLINTON PLAN HAVE THE OPTION OF FORMING A CORPORATE ALLIANCE THESE ROUGHLY 1000 REGIONAL OR OTHER ALLIANCES ARE THE MONOPOLY BUYERS OF MEDICAL SERVICES FOR THE 88 OF GERMANS WHO BELONG TO THE STATUTORY SYSTEM THE CLINTON TEAM WANTS A SYSTEM THAT GUARANTEES IDENTICAL BENEFIT STANDARDS FOR ALL ALLIANCES THE AMERICAN DEBATE OVER COVERAGE FOR MAMMOGRAMS AND PROSTATECANCER TESTS ALREADY GIVES A WHIFF OF HOW CONTROVERSIAL THE CONTENTS OF THIS LIST WILL BE IN GERMANY WHICH ALREADY HAS SUCH UNIFIED STANDARDS THE CONTENTS OF THE LIST ARE SO IMPORTANT THEY CAN AFFECT ELECTIONS COVERAGE OF ABORTIONS FOR EXAMPLE WILL PLAY A ROLE IN ELECTIONS THIS YEAR THE NET RESULT GERMANY SHOWS IS THAT THE LIST SIMPLY GROWS OVER THE YEARS GERMANS PAY FOR THEIR PLAN THROUGH WHAT IS ESSENTIALLY A PAYROLL TAX JUST AS THE PRESIDENT WOULD HAVE AMERICANS DO EMPLOYERS AND EMPLOYEES IN GERMANY EACH PAY HALF OF THE TAX RATHER THAN THE 8020 SPLIT PROPOSED IN THE CLINTON PLAN THE TAX RATE DIFFERS AMONG THE ALLIANCES RANGING FROM 8 TO 168 OF PAYROLL AGGREGATE OF EMPLOYER AND EMPLOYEE SHARE WITH AN AVERAGE OF 134 YET GERMANY'S PROGRAM GIVES US CLEAR EVIDENCE OF THE DEGREE TO WHICH THIS SYSTEM LENDS ITSELF TO ABUSE ONCE THEIR TAX IS PAID GERMANS GRAZE THEMSELVES TO OBESITY ON MEDICAL SERVICES THE CLINTON PLAN HAS THE SAME BIAS TOWARD EXCESSIVE INDIVIDUAL USE OF MEDICAL SERVICES AT THE EXPENSE OF ALL MEMBERS OF AN ALLIANCE THE GERMAN SYSTEM'S MAJOR FAULT IS THAT IT DOESN'T PUT PEOPLE FIRST IN THE SENSE OF BUILDING ON INDIVIDUAL RESPONSIBILITY AND CONTROL THROUGH EFFECTIVE COPAYMENTS AND OTHER INCENTIVES TO SAVE IT IS INTERESTING THAT CORPORATE ALLIANCES ORGANIZED BY COMPANIES THAT HAVE AN INTEREST IN HOLDING THEIR OWN 50 SHARE DOWN TYPICALLY HAVE PREMIUMS FAR BELOW THE AVERAGE REGIONAL ALLIANCE THE CLINTON PLAN'S CRITICS BELIEVE THAT THIS SYSTEM ALSO STRENGTHENS BUREAUCRACY THE GERMAN PLAN PROVES THEM CORRECT WHILE THE ALLIANCES WERE ORIGINALLY DEVISED AS NONGOVERNMENTAL HEALTH PLAN PURCHASING COOPERATIVES THEY HAVE DEGENERATED INTO DE FACTO GOVERNMENT AGENCIES SOME 112000 EMPLOYEES IN WESTERN GERMANY ALONE WORK FOR ALLIANCES THEIR ADMINISTRATIVE COSTS PER MEMBER HAVING RISEN BY 535 ADJUSTED FOR INFLATION FROM 1982 TO 1992 THIS IS MORE THAN THE INCREASE IN THE ALLIANCES' TOTAL HEALTH COSTS REVEALING THAT THE DISEASE OF BUREAUCRACY IS THE REAL PROBLEM THE CLINTON PLAN'S CRITICS ALSO FEAR THAT IT WILL QUICKLY BECOME A SINGLEPAYER SYSTEM IN EFFECT GERMANY'S HAS ALREADY BECOME ONE FINANCED BY THE PAYROLL TAX FOR THE 88 IN THE STATUTORY SYSTEM PATIENTS DO NOT SEE A DOCTOR'S BILL THUS THEY HAVE NO WAY OF REALIZING WHETHER THE CHARGE FOR A SERVICE HAS BEEN PARTICULARLY EXPENSIVE OR EVEN WHETHER THE SERVICE HAS ACTUALLY BEEN RENDERED THE DOCTOR SENDS HIS BILL TO HIS REGIONAL ASSOCIATION OF PHYSICIANS AS THE FINANCIAL CLEARING HOUSE AND COUNTERPART OF THE PATIENT'S ALLIANCE HIDDEN TAXES A FLAW IN THE CLINTON PLAN ARE ALREADY PART OF THE GERMAN PLAN BECAUSE THE AVERAGE GERMAN CARRIES ONLY 50 OF HIS HEALTH CARE COSTS DIRECTLY HE IS AWARE OF ONLY HIS 50 AND INCREASES MAY NOT BOTHER HIM TOO MUCH BUT THE 50 THE EMPLOYER CARRIES IS REFLECTED IN OVERALL LABOR COSTS THAT MAKE GERMANY THE SECONDMOSTEXPENSIVE COUNTRY IN THE WORLD TO EMPLOY PEOPLE AFTER SWITZERLAND AND ONE WITH HIGHER UNEMPLOYMENT THAN THE US UNDER THE PLANNED 80 EMPLOYER COSTSHARING IN THE CLINTON PLAN THIS LABORDEPRESSING EFFECT WOULD EVEN BE MORE PRONOUNCED IN THE US COSTSHARING AND LACK OF INCENTIVES TO SAVE FORM A POTENT DRUG DRIVING HEALTH COSTS UP UNOBSERVED HIDDEN TAXES GROW THE GERMAN PAYROLL TAX ROSE FROM AN AVERAGE OF 6 IN 1950 TO 84 IN 1960 AND 114 IN 1980 BEFORE REACHING ITS CURRENT 134 FINANCIALLY THE GERMAN PLAN IS ALSO NO MODEL FOR 20 YEARS IT HAS VACILLATED BETWEEN FINANCIAL DISTRESS AND COLLAPSE AND THE GOVERNMENT HAS INTRUDED WITH EVERTIGHTER REGULATIONS SINCE 1977 ALONE THERE HAVE BEEN NINE FEDERAL LAWS TRYING TO CURB COSTS GERMAN MEASURES TO CONTROL COSTS FORESHADOW THE RESULTS OF THE CLINTON PLAN PRICE CONTROLS AND CONTROL OF SUPPLY LAST YEAR PHYSICIANS DENTISTS AND PRESCRIPTION DRUGS WERE EACH AS A GROUP SUBJECTED TO NARROW BUDGET CAPS AND TIGHT REGIONAL QUOTAS NOW LIMIT THE NUMBER OF DOCTORS ALLOWED TO PRACTICE UNDER THE SYSTEM THE PHYSICIAN ASSOCIATIONS HAVE TO POLICE THEIR MEMBERS WITH RESPECT TO EXCESSIVE ABOVEAVERAGE SERVICES MORE COSTEFFECTIVE PARTICULARLY CORPORATE ALLIANCES NOW HAVE TO CROSSSUBSIDIZE HIGHCOST ALLIANCES THUS REWARDING INEFFICIENCY IN THE NAME OF SOLIDARITY PRUDENT INSURED PEOPLE AND PRUDENT DOCTORS ARE STILL NOT REWARDED FOR COST SAVINGS IN THE FORM OF LOWER PREMIUMS OR BONUSES NEEDLESS TO SAY ALL REFORM ATTEMPTS HAVE MISSED THEIR TARGETS ALTHOUGH ONLY 10 OF GERMANS ARE COVERED BY PRIVATE INSURANCE IT OFFERS SOME OBVIOUS LESSONS FOR EVERYONE FIRST PAYROLL TAXES IN THE STATUTORY SYSTEM ARE 25 HIGHER THAN PRIVATE PREMIUMS SINCE PRIVATE INSURERS COMPETE VIGOROUSLY THEIR BENEFITS ARE BETTER AND THE ADMINISTRATIVE COST PER INSURED PERSON IS ONLY HALF SECOND THE PRIVATE ALTERNATIVE FORCES THE STATUTORY SYSTEM TO IMPROVE WITHIN LIMITS SINCE OTHERWISE ITS VOLUNTARY MEMBERS WOULD OPT OUT FOR PRIVATE INSURANCE THIS BENEFICIAL EFFECT IS INDIRECTLY EVIDENCED BY THE LARGER INEFFICIENCIES IN COUNTRIES THAT FORCE EVERYBODY INTO A STATUTORY SYSTEM MAYBE THE CLINTON TEAM LOOKED AT VARIOUS STATUTORY SYSTEMS AND CONCLUDED THAT GERMANY'S LOOKED BEST THE ONEEYED IS KING AMONG THE BLIND BUT WHY DOES THE PRESIDENT WANT TO EMULATE THE 90 OF THE GERMAN SYSTEM THAT IS FAILING INSTEAD OF THE 10 THAT IS EFFECTIVE PERHAPS THE MOST INTERESTING REVELATION FROM THE GERMAN PLAN THOUGH IS THAT IT SHOWS HOW UNREALISTIC MR CLINTON'S IS IN THE US THE MAXIMUM PREMIUM TO AN ALLIANCE WILL BE ABOUT 10 OF PAYROLL THIS IS SUPPOSED TO PAY FOR HEALTH COSTS THAT NOW AMOUNT TO 14 OF GDP SET TO RISE TO 173 IN THE YEAR 2000 UNDER THE CLINTON PLAN'S REFORM PROJECTIONS 189 OTHERWISE IF A 134 PAYROLL TAX IN GERMANY IS NEEDED TO FINANCE 106 OF GDP IT IS HARD TO CONCEIVE HOW IN THE US A MUCH SMALLER PAYROLL TAX OF 10 CAN FINANCE US HEALTH CARE COSTS AT A MUCH LARGER SHARE OF 14 TO 17 OF GDP THE MISSING GAP IS TOO LARGE TO BE FILLED BY THE DESIGNATED SUBSIDIES AND SIN TAXES IF YOU WANT TO COPY PAGES OUT OF THE GERMAN SOCIAL POLICY BOOK HAVE YOUR CHECKBOOK HANDY MR PREWO IS CHIEF EXECUTIVE OF THE CHAMBER OF INDUSTRY AND COMMERCE IN HANOVER GERMANY 9402010122 940201 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BALTIC INTERNATIONAL USA INC AN INITIAL OFFERING OF ONE MILLION COMMON SHARES VIA TEXAS CAPITAL SECURITIES INC ELECTRONIC FAB TECHNOLOGY CORP AN INITIAL OFFERING OF 1515000 SHARES OF COMMON STOCK VIA DAIN BOSWORTH INC AND STEPHENS INC OVERSEAS SHIPHOLDING GROUP INC AN OFFERING OF THREE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF 450000 ADDITIONAL SHARES VIA GOLDMAN SACHS & CO JP MORGAN SECURITIES INC AND FURMAN SELZ INC 9402010121 940201 TECHNOLOGY & HEALTH ROCHE BEGINS A STUDY ON NEW AIDS DRUG NUTLEY NJ ROCHE HOLDING LTD A SWISS DRUG AND CHEMICAL COMPANY SAID IT HAS BEGUN A MAJOR INTERNATIONAL STUDY OF A NEW EXPERIMENTAL AIDS DRUG AS A RESULT OF PROMISING STUDIES IN PATIENTS COMPLETED LAST YEAR ROCHE THE PARENT OF HOFFMANNLA ROCHE INC SAID IT WILL STUDY A DRUG CALLED R0318959 IN MORE THAN 3000 PATIENTS WITH AIDS IN THE US AND ABROAD THE DRUG IS PART OF A CLASS THAT DEACTIVATES THE AIDS VIRUS BY BLOCKING AN ENZYME CALLED PROTEASE THAT THE VIRUS USES TO REPRODUCE IN RECENT MONTHS SCIENTIFIC INTEREST IN THESE DRUGS HAS INCREASED SHARPLY AS FIVE COMPANIES INCLUDING MERCK & CO AND WELLCOME PLC HAVE STEPPED UP EFFORTS TO TEST THEIR VERSIONS OF THE PROTEASE BLOCKING DRUGS THE RACE TO DEVELOP PROTEASE DRUGS INTENSIFIED AFTER ROCHE LAST YEAR PRESENTED PRELIMINARY HUMAN TESTS IN EUROPE SHOWING THE DRUG WAS SAFE AND APPEARED TO REDUCE LEVELS OF VIRUS IN THE BLOODSTREAM KEITH BRAGMAN HEAD OF ROCHE'S INTERNATIONAL PROGRAM SAID THE COMPANY HAS MOVED QUICKLY TO ORGANIZE TESTING IN 90 SITES AROUND THE WORLD WE WERE QUITE EXCITED BY THE INITIAL EUROPEAN RESULTS HE SAID WE ARE THE FIRST COMPANY TO SHOW IN HUMANS PROOF OF THE CONCEPT OF BLOCKING THE PROTEASE ENZYME THE ROCHE DRUG IS KNOWN TO BE VERY EXPENSIVE TO SYNTHESIZE INVOLVING OVER 21 STEPS ROCHE SAID THE CURRENT STUDY WILL COST MANY MILLIONS OF DOLLARS ALTHOUGH IT DECLINED TO BE MORE SPECIFIC 9402010120 940201 TRAVELERS CANCELS PLAN TO RAISE INSURANCE RATES NEW YORK TRAVELERS INC CANCELED A CONTROVERSIAL PLAN TO RAISE HOMEOWNERS INSURANCE RATES ON LONG ISLAND GIVING UP ITS CHALLENGE TO OBJECTIONS RAISED BY THE NEW YORK STATE INSURANCE DEPARTMENT TRAVELERS ATTEMPTED TO RAISE RATES BY 20 FOLLOWING HURRICANE ANDREW IN AUGUST 1992 OTHER INSURERS RAISED RATES IN LOUISIANA AND FLORIDA AFTER THE STORM BUT TRAVELERS WAS THE FIRST TO TRY TO RAISE RATES IN A STATE THAT DIDN'T BORDER ON THE GULF OF MEXICO TRAVELERS WAS HELD UP AS AN EXAMPLE OF SHORELINING A PRACTICE WHERE INSURANCE COMPANIES TRY TO AVOID INSURING HOMES IN COASTAL AREAS THIS DEPARTMENT WILL NOT ALLOW INSURANCE COMPANIES TO RAISE HOMEOWNERS INSURANCE RATES UNLESS THEY CAN CLEARLY DEMONSTRATE THEY HAVE SUFFERED LOSSES SAID NEW YORK INSURANCE SUPERINTENDENT SALVATORE CURIALE TRAVELERS DECLINED COMMENT ON WHY IT BACKED AWAY FROM ITS CHALLENGE IT SAID IT WILL REFUND MONEY TO POLICYHOLDERS WHO ALREADY HAVE PAID THE HIGHER RATES 9402010119 940201 TWO TIRE CONCERNS END ACCORD AKRON OHIO GENERAL TIRE INC AND BIG O TIRES INC SAID THEY MUTUALLY AGREED TO TERMINATE A MAY 1993 MARKETING AGREEMENT BETWEEN THE TWO COMPANIES THE AGREEMENT TO BE RENEWED ANNUALLY HAD PROVIDED FOR GENERAL TIRE BASED IN AKRON TO SUPPLY TIRES TO BIG O BASED IN ENGLEWOOD COLO A SPOKESWOMAN FOR BIG O SAID THE AGREEMENT WAS TERMINATED BECAUSE OF POLICY DIFFERENCES BETWEEN THE TWO COMPANIES GENERAL TIRE THE US AND CANADIAN ARM OF GERMAN TIRE MAKER CONTINENTAL AG WILL CONTINUE TO SELL TIRES TO A DIVISION OF BIG O THAT SUPPLIES TIRES TO DISTRIBUTORS MAINLY IN THE EASTERN US 9402010118 940201 CONWAY QUITS BOARD POST AT AMERICA WEST AIRLINES PHOENIX MICHAEL J CONWAY THE DEPOSED CHIEF EXECUTIVE OFFICER OF AMERICA WEST AIRLINES HAS RESIGNED FROM THE CARRIER'S BOARD REDUCING THE NUMBER OF DIRECTORS TO NINE MR CONWAY ONE OF THE COMPANY'S FOUNDERS WAS OUSTED AS CHIEF EXECUTIVE ON NEW YEAR'S EVE CULMINATING A FEUD WITH AMERICA WEST CHAIRMAN WILLIAM A FRANKE MR CONWAY HAD PREVIOUSLY SAID HE WOULD STAY ON THE BOARD TO HELP THE AIRLINE EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS WHERE IT HAS OPERATED FOR ALMOST THREE YEARS IN AN INTERVIEW YESTERDAY MR CONWAY DECLINED COMMENT ON WHY HE RESIGNED IT IS KNOWN HOWEVER THAT THE 48YEAROLD MR CONWAY IS TALKING TO POSSIBLE INVESTOR GROUPS IN AMERICA WEST AND PEOPLE FAMILIAR WITH THE SITUATION SAY MR CONWAY WOULD LIKE TO RETURN TO THE AIRLINE AFTER IT EMERGES FROM CHAPTER 11 WITH NEW OWNERSHIP MR CONWAY DECLINED TO COMMENT ON HIS FUTURE PLANS 9402010117 940201 WHO'S NEWS UNITED TECHNOLOGIES GIVES GEORGE DAVID ADDED POST OF CEO HARTFORD CONN UNITED TECHNOLOGIES CORP SAID GEORGE DAVID PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER CHAIRMAN ROBERT F DANIELL 60 YEARS OLD CALLED THE MOVE A LOGICAL NEXT STEP IN A CAREFULLY PLANNED TRANSITION PLAN TO ASSURE CONTINUITY AND STABILITY IN OUR TOP MANAGEMENT SUCCESSION THE PROMOTION OF MR DAVID 51 WHO HAS BEEN SHEPHERDING A MAJOR RESTRUCTURING OF THE COMPANY DIDN'T SURPRISE WALL STREET ANALYSTS SINCE BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER TWO YEARS AGO MR DAVID HAS PLAYED A VISIBLE ROLE AT THE COMPANY IN MANAGING THE RESTRUCTURING ANNOUNCED IN AUGUST 1991 THE RESTRUCTURING IS INTENDED TO SLASH 1 BILLION IN ANNUAL COSTS BY 1995 IN ANNOUNCING THE MOVE MR DANIELL SAID MR DAVID HAD DONE AN OUTSTANDING JOB IN MOVING OUR RESTRUCTURING PROGRAM FORWARD AHEAD OF SCHEDULE SOME ANALYSTS WHO GAVE MR DAVID HIGH MARKS FOR HELPING BRING THE COMPANY'S STOCK BACK ON THE GROWTH PATH SAID THEY WERE A LITTLE SURPRISED BY THE TIMING OF THE ANNOUNCEMENT IT IS BIT SOONER THAN I EXPECTED SAID PHIL FRIEDMAN AN ANALYST AT MORGAN STANLEY IT MEANS THAT MR DANIELL IS GOING TO FOCUS ON STRATEGIC ISSUES AND MR DAVID IS GOING TO FOCUS ON OPERATIONS HE SAID MR DAVID JOINED UNITED TECHNOLOGIES' OTIS ELEVATOR UNIT IN 1975 UNITED TECHNOLOGIES' OTHER BUSINESSES INCLUDE AUTOMOTIVE PRODUCTS JET ENGINES AND HEATING AND AIRCONDITIONING SYSTEMS 9402010116 940201 MARKETSCAN CONSUMERS LEAVING NEW TWISTS ON OLD PRODUCTS ON THE SHELVES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NED MEARA A BUYER FOR GRAND UNION SUPERMARKETS IN WAYNE NJ SPENDS MUCH OF HIS DAY FENDING OFF LINE EXTENSIONS FROM THE NATION'S LARGEST CONSUMERPRODUCTS COMPANIES THINGS HAVE GOTTEN SO BAD HE FRETS THAT ONE DAY A SALESMAN WILL PROBABLY OFFER HIM RIGHT AND LEFTHANDED BATHROOM TISSUE PRODUCTLINE EXTENSIONS HAVE LONG BEEN VIEWED AS A CHEAP LOWRISK WAY TO MAKE EXTRA SALES BUT THE OBSESSION WITH ADDING A NEW FLAVOR SIZE OR FORMULATION TO A BRAND IS STARTING TO BACKFIRE LEAVING STORE SHELVES CLOGGED WITH SLOWMOVING PRODUCTS IT'S GOTTEN TOTALLY OUT OF CONTROL SAYS MR MEARA LINE EXTENSIONS REPRESENT NEARLY 75 OF NEWPRODUCT INTRODUCTIONS COMPARED WITH 63 IN 1990 ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD LINE EXTENSIONS ARE THE MAJOR REASON WHY BIG BRANDS ARE HURTING SAYS AL RIES CHAIRMAN OF TROUT & RIES A MARKETING CONSULTING FIRM IN GREENWICH CONN EVERYBODY SELLS EVERYTHING AND NOBODY IS MAKING ANY MONEY THE RESULT IS A PARADE OF DOOMED PRODUCTS MR RIES SAYS INCLUDING LIFE SAVERS GUM A1 POULTRY SAUCE CLOROX DETERGENT AND COORS ROCKY MOUNTAIN SPARKLING WATER A FEW COMPANIES ARE PRUNING PRODUCT LINES OR INVESTING IN NEW OFFERINGS SUCH AS UNILEVER'S LEVER 2000 SOAP AND SURF DETERGENT BOTH HAVE BEEN FAR MORE SUCCESSFUL THAN MOST LINE EXTENSIONS BUT USUALLY COMPANIES ADD A FLAVOR OR SCENT TO A BRAND RATHER THAN SPEND THE 30 MILLION NEEDED TO CREATE ADVERTISE AND SHIP A NEW PRODUCT LINE THE MAIN REASON PRODUCT MANAGERS RESORT TO LINE EXTENSIONS TO GET A QUICK FIX FOR THE NEXT QUARTER SAYS ALBERT TUHY A SENIOR BUYER FOR WALGREEN CO A LARGE DRUGSTORE CHAIN WHILE NEW PRODUCTS HAVE A 80 TO 90 FAILURE RATE LINE EXTENSIONS HAVE A HIGHER CHANCE OF SURVIVAL AND WITH LESS INVESTED UP FRONT COMPANIES OFTEN HAVE MORE MODEST SALES GOALS FOR LINE EXTENSIONS MARKETING EXECUTIVES DEFEND LINE EXTENSIONS AS THE BEST WAY TO BUILD A BUSINESS EXECUTIVES AT KIMBERLYCLARK CORP'S KLEENEX UNIT SAY LINE EXTENSIONS HAVE ALLOWED THE BRAND'S VOLUME TO GROW IN A PERIOD OF SLOW POPULATION GROWTH AND INCREASED USE OF OVERTHECOUNTER COLD REMEDIES WE TRY TO GET FACIAL TISSUE IN EVERY ROOM OF THE HOME SAYS JAMES BERND EXECUTIVE VICE PRESIDENT OF KIMBERLYCLARK IF IT IS THERE IT WILL GET USED MR BERND'S PHILOSOPHY HAS LED TO 20 VARIETIES OF KLEENEX FACIAL TISSUES INCLUDING LOTIONIMPREGNATED TISSUES BOXES WITH NURSERYRHYME DRAWINGS FOR CHILDREN'S ROOMS AND A MANSIZED BOX WITH TISSUES 66 BIGGER THAN REGULAR KLEENEX IN CASE WE HAVE A LUMBERJACK SHOPPING IN OUR STORES QUIPS MR MEARA THE GRAND UNION BUYER EXECUTIVES AT RJR NABISCO HOLDINGS CORP CONCEDE THAT LINE EXTENSIONS SOMETIMES GET OUT OF HAND ITS A1 POULTRY SAUCE WAS A FLOP WE QUICKLY LEARNED THAT A1 MEANS BEEF SAYS A NABISCO SPOKESMAN BUT NABISCO HASN'T FORSAKEN LINE EXTENSIONS ITS LATEST OFFERING LIFE SAVERS GELATIN THE BAYER SELECT LINE IS A CLASSIC EXAMPLE OF A POORLY CONCEIVED LINE EXTENSION MR RIES SAYS IT WAS INTRODUCED IN THE FALL OF 1992 BY EASTMAN KODAK CO'S STERLING WINTHROP DRUG UNIT TO COMBAT THE RAPID GROWTH OF NONASPIRIN PAIN RELIEVERS SUCH AS TYLENOL AND ADVIL BUT THE BAYER NAME HAS BEEN LINKED TO ASPIRIN FOR NEARLY A CENTURY AND TROUT & RIES SAY ANY NONASPIRIN PRODUCT WITH THE NAME IS LIKELY TO FAIL INDEED BAYER SELECT IS OFF TO A SLOW START DESPITE AN ESTIMATED 100 MILLION MARKETING BUDGET THE BAYER SELECT PAINKILLERS ACCOUNT FOR LESS THAN 2 OF THE 246 BILLION ANALGESIC MARKET ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE LINE'S SALES WERE 438 MILLION FOR THE 52 WEEKS ENDED DEC 19 THEY HAVE NOT DONE WELL IN RELATIONSHIP TO WHAT THEY SPENT SAYS MR TUHY THE WALGREEN BUYER STERLING WINTHROP RECENTLY REPLACED THE EXECUTIVE WITH DIRECT RESPONSIBILITY FOR ALL BAYER PRODUCTS IN THE US AND LATE LAST WEEK CHANGED THE BRAND'S AD AGENCY MARKETING EXPERTS SAY BAYER RISKS BLURRING ITS IMAGE AS THE TOP ASPIRIN BY TARGETING TYLENOL AND ADVIL BAYER SELECT IS A BAD IDEA GONE BAD SAYS JACK TROUT PRESIDENT OF TROUT & RIES BAYER SELECT HAS 11 PRODUCTS EACH FOR EXTREMELY SPECIFIC AILMENTS FROM MENSTRUAL PAIN TO SINUS PAIN TO BACKACHES THE RECENTLY DISMISSED AD AGENCY AYER CREATED THE LINE'S CLUNKY SLOGAN EXACTLY WHAT'S RIGHT FOR EXACTLY WHAT'S WRONG STERLING WON'T COMMENT ON WHETHER THE SLOGAN ALSO WILL BE DROPPED THE AILMENTSPECIFIC PRODUCT LINE IS CONFUSING TO CONSUMERS AND HAS DILUTED STERLING'S MASSIVE PROMOTION OF IT BY BREAKING UP THIS MONEY INTO A MILLION DIFFERENT PIECES YOU ARE NOT PUTTING IT BEHIND ANY ONE IDEA TO MAKE IT STICK SAYS MR TROUT WILLIAM G PIETERSEN PRESIDENT OF STERLING WINTHROP'S CONSUMER HEALTH GROUP NOTES THAT BAYER SELECT HAS A LARGER MARKET SHARE THAN MANY RIVALS STILL HE ACKNOWLEDGES THAT ITS VOLUME GOALS WERE OVERLY AMBITIOUS WE ARE NOT THERE YET HE ADDS THAT IT'S TOO EARLY TO CALL THE RESULTS IN TERMS OF ULTIMATE LEVELS OF SUCCESS STILL MR TUHY IS CONSIDERING DROPPING SOME BAYER SELECT ITEMS FROM WALGREEN STORES HE SAYS MANUFACTURERS ARE GETTING MORE CAUTIOUS ABOUT JAMMING LINE EXTENSIONS INTO STORES GIVEN THE EXPENSE OF SHIPPING PRODUCTS THAT DON'T SELL AT LEAST MR TUHY HOPES SO OUR STORES AREN'T GETTING ANY BIGGER HE SAYS DRYLY 9402010115 940201 WHO'S NEWS IACOCCA FORMS A MERCHANT BANK AIMED AT ENTERTAINMENT AIRLINES AND GAMING BY JACQUELINE MITCHELL AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL FORMER CHRYSLER CORP CHAIRMAN LEE IACOCCA SAYS HE IS FORMING A NEW MERCHANT BANK LOOKING FOR DEALS IN THE ENTERTAINMENT AIRLINE AND GAMING INDUSTRIES AND HAS GOTTEN ADVICE FROM LONGTIME FRIEND AND BILLIONAIRE INVESTOR KIRK KERKORIAN MR IACOCCA SAID YESTERDAY IN A TELEPHONE INTERVIEW FROM HIS LOS ANGELES HOME THAT MR KERKORIAN ISN'T FINANCIALLY INVOLVED WITH THE NEW VENTURE I HOPE ONE DAY KIRK WILL BE INVOLVED WITH THE COMPANY MR IACOCCA SAID I'VE LEARNED A LOT FROM HIM I GOT INTERESTED IN ENTERTAINMENT AIRLINES AND GAMING BECAUSE OF KIRK MR IACOCCA PLANS TO FORMALLY ANNOUNCE HIS NEW VENTURE IACOCCA CAPITAL PARTNERS TODAY WITH HIMSELF AS THE LARGEST OWNER DEALS WILL BE FINANCED BY MR IACOCCA AND HIS TWO PRINCIPAL PARTNERS BUT MAY ALSO INCLUDE INVESTMENTS FROM PENSION FUNDS AND AFFLUENT INVESTORS HE SAID JEFFERIES GROUP INC A LOS ANGELESBASED INVESTMENT CONCERN WILL PROVIDE SECURITIES TRADING AND INVESTMENTBANKING SUPPORT AND HOLD A MINORITY STAKE MR IACOCCA WOULDN'T SAY HOW MUCH OF HIS OWN MONEY HE HAS INVESTED IN THE NEW COMPANY I'VE INVESTED QUITE A BIT HE SAID I'VE SOLD A LOT OF CHRYSLER STOCK AND I INVESTED SOME OF IT IN THE NEW COMPANY ANOTHER PARTNER MICHAEL KLEIN SAID THE VENTURE WILL HAVE THE POTENTIAL TO DO MULTIHUNDREDMILLIONDOLLAR TRANSACTIONS MR KLEIN WHO SET UP HIS OWN BEVERLY HILLS CALIF FIRM LAST YEAR WORKED FOR MANY YEARS AS AN INVESTMENT ADVISER AND BROKER AT BEAR STEARNS & CO IN 1987 HE HELPED TO ESTABLISH THE FIRM'S MEDIA AND ENTERTAINMENT GROUP WHICH HANDLED DEALS FOR MANY HOLLYWOOD STUDIOS INCLUDING MGM/UA ENTERTAINMENT CO A PREDECESSOR OF METROGOLDWYNMAYER INC THAT WAS CONTROLLED AT THE TIME BY MR KERKORIAN THE THIRD PARTNER IS WILLIAM S ELKUS A LOS ANGELES MONEY MANAGER WHO REPRESENTS SOME OF THE NATION'S WEALTHIEST FAMILIES MR IACOCCA SAID THE GROUP DOESN'T HAVE ANY VENTURES TO ANNOUNCE YET BUT IS COMPLETING A DEAL WITH A SMALL SOFTWARE COMPANY TRYING TO SELL INTERACTIVE TELEVISION SYSTEMS TO AIRLINES THE RELATIONSHIP BETWEEN MESSRS KERKORIAN AND IACOCCA DATES FROM 1989 WHEN CHRYSLER EXPLORED SELLING A NONAUTOMOTIVE UNIT TO MR KERKORIAN WHO IN TURN ASKED CHRYSLER TO BUY INTO FILM STUDIOS HE WAS LOOKING TO SELL NEITHER DEAL WORKED OUT BUT MR KERKORIAN EVENTUALLY BOUGHT CHRYSLER STOCK WHICH HAS GROWN TO A 89 STAKE WITH A MARKET VALUE OF NEARLY 2 BILLION MR IACOCCA ALSO IS A DIRECTOR OF MGM GRAND INC A LAS VEGAS HOTEL AND CASINO COMPANY THAT IS 76OWNED BY MR KERKORIAN LAST YEAR MR IACOCCA SOLD 12 MILLION CHRYSLER SHARES AT AN INDICATED VALUE OF 533 MILLION ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS MR IACOCCA NOW 69 YEARS OLD RETIRED AS CHRYSLER'S CHAIRMAN IN DECEMBER 1992 BUT REMAINS A CONSULTANT TO THE AUTO MAKER UNTIL JANUARY 1995 HE WILL BE CHAIRMAN OF THE NEW INVESTMENT VENTURE 9402010114 940201 WHO'S NEWS SEARCH CAPITAL GROUP INC SEARCH CAPITAL GROUP INC DALLAS A BREAN MURRAY WAS NAMED A DIRECTOR OF THIS FINANCIALSERVICES COMPANY EXPANDING ITS BOARD TO SIX MEMBERS MR MURRAY 56 YEARS OLD IS CHAIRMAN OF BREAN MURRAY FOSTER SECURITIES INC 9402010113 940201 BANK OF BOSTON SELLS ASSETS BOSTON BANK OF BOSTON CORP SAID IT COMPLETED THE PREVIOUSLY REPORTED SALE OF THE DOMESTIC PORTION OF ITS FACTORING BUSINESS TO BANK OF NEW YORK CO FOR A PRETAX GAIN OF 27 MILLION IN ITS FIRST QUARTER BANK OF BOSTON SAID IT EXPECTS AN ADDITIONAL SMALL PRETAX GAIN ON THE SALE OF THE CANADIAN PORTION OF THE BUSINESS WHICH IT EXPECTS TO COMPLETE LATER THIS YEAR AFTER RECEIPT OF REGULATORY APPROVALS FOR ITS 1993 FIRST QUARTER THE COMPANY REPORTED NET OF 674 MILLION OR 67 CENTS A SHARE AFTER A 172 MILLION GAIN RELATED TO AN ACCOUNTING CHANGE 9402010112 940201 KANTOR HOPES JAPAN'S CABINET OFFICIALS CAN FORGE COMPROMISE IN TRADE TALKS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEEKING TO BREAK AN IMPASSE WITH JAPAN ON TRADE US TRADE REPRESENTATIVE MICKEY KANTOR TRAVELED TO TOKYO TO PRESS JAPANESE CABINET OFFICIALS TO INTERVENE IN THE TALKS US OFFICIALS SAID THEY WANTED TO MOVE QUICKLY TO SEE WHETHER PRIME MINISTER MORIHIRO HOSOKAWA'S SUCCESS IN PUSHING THROUGH ELECTORAL REFORM WOULD PROMPT TOKYO TO COMPROMISE IN THE SOCALLED FRAMEWORK TRADE TALKS MR HOSOKAWA'S VICTORY IN JAPAN'S PARLIAMENT LAST WEEK GETS POLITICAL REFORM BEHIND HIM SO NOW HE CAN FOCUS ON ECONOMIC ISSUES WITH THE US SAID ROBERT RUBIN DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL BUT IT'S UNCLEAR HOW FAR JAPAN WILL MOVE US OFFICIALS HAVE COMPLAINED THAT NEGOTIATORS FROM JAPAN'S POWERFUL MINISTRIES HAVE BLOCKED COMPROMISE SO THE US IS SEEKING THE INVOLVEMENT OF JAPANESE CABINET OFFICIALS THE NEGOTIATORS' NOMINAL BOSSES WHO PRESUMABLY WOULD MAKE CONCESSIONS RATHER THAN FACE A CONFRONTATION WITH JAPAN'S MOST POWERFUL ALLY BUT IN PUBLIC COMMENTS MR HOSOKAWA HAS BACKED THE BUREAUCRATS' RESISTANCE TO US DEMANDS THAT JAPAN AGREE TO NUMERICAL TARGETS FOR IMPORT PURCHASES ON SUNDAY PRESIDENT CLINTON TELEPHONED MR HOSOKAWA CONGRATULATED HIM ON HIS VICTORY AND SAID HE WAS SENDING MR KANTOR AS HIS PERSONAL REPRESENTATIVE TO TOKYO US OFFICIALS SAID BOWMAN CUTTER DEPUTY DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL WHO IS THE LEAD US NEGOTIATOR IN THE FRAMEWORK TALKS IS ACCOMPANYING MR KANTOR THE PAIR IS EXPECTED TO MEET WITH MR HOSOKAWA AND SENIOR MEMBERS OF HIS CABINET THE US SIDE ISN'T EXPECTED TO UNVEIL ANY NEW TRADE PROPOSALS AT THESE MEETINGS BUT WILL PRESS JAPAN TO SHOW MORE FLEXIBILITY IF THE TALKS GO WELL THE REST OF THE US NEGOTIATING TEAM IS EXPECTED IN TOKYO FOR TALKS AT THE END OF THE WEEK BUT IF THE IMPASSE PERSISTS US NEGOTIATORS MAY REMAIN AT HOME SENDING A MESSAGE TO TOKYO THAT THE US WILL WALK AWAY FROM A DEAL UNLESS JAPAN BENDS ANOTHER POSSIBILITY IS THAT JAPAN'S TRADE NEGOTIATORS WILL HOLD FOLLOWUP TALKS IN WASHINGTON WHERE THEY CAN ESCAPE SOME OF THE DOMESTIC PRESSURE AGAINST CONCESSIONS THE TWO SIDES ARE SUPPOSED TO STRIKE A DEAL BY FEB 11 WHEN MR HOSOKAWA COMES TO WASHINGTON FOR A SUMMIT MEETING IN JULY AFTER WEEKS OF WRANGLING THE US AND JAPAN AGREED TO USE QUANTITATIVE INDICATORS TO MEASURE WHETHER JAPAN IS OPENING ITS MARKETS BUT THE TWO SIDES INTERPRET THAT AGREEMENT MUCH DIFFERENTLY JAPAN SAYS IT IS WILLING TO TRACK IMPORT DATA ONLY AS A WAY TO DIAGNOSE TRADE PROBLEMS SOZABURO OKAMATSU VICE MINISTER OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THAT A PANEL OF ECONOMISTS BUSINESS OFFICIALS AND JOURNALISTS SHOULD INTERPRET THE DATA AND MAKE SUGGESTIONS TO THE GOVERNMENTS FOR FURTHER ACTION BUT THE US NEGOTIATORS COMPLAIN THAT WOULD LEAD TO INACTION AND DELAY INSTEAD THE US WANTS JAPAN TO COMMIT TO IMPORT GOALS AS WELL AS INDICATORS TO MEASURE PROGRESS TOWARD THOSE GOALS IN AUTO PARTS FOR INSTANCE JAPANESE CAR MAKERS HAVE SAID THEY WOULD BUY 19 BILLION IN US PARTS BY THE YEAR ENDING MARCH 31 1995 THE US WANTS A JAPANESE COMMITMENT TO INCREASE THOSE PURCHASES BY ABOUT 20 A YEAR FOR THE FOLLOWING THREE TO FOUR YEARS IN GOVERNMENT PROCUREMENT US GOALS ARE LESS SPECIFIC GENERALLY THE US WANTS JAPAN'S IMPORT LEVELS TO MOVE IN THE DIRECTION OF OTHER BIG INDUSTRIALIZED COUNTRIES IN TELECOMMUNICATIONS THE US ESTIMATES THE SIX BIGGEST WESTERN ECONOMIES IMPORT ABOUT 25 OF THEIR EQUIPMENT JAPAN'S IMPORTS TOTAL ONLY 5 SO FAR THOUGH THE US HASN'T TOLD TOKYO SPECIFICALLY WHAT RATE OF INCREASE IT IS SEEKING JAPAN HASN'T EVEN AGREED TO THE CONCEPT OF IMPORT GOALS AND THE TWO SIDES ALSO ARE FAR APART ON THE QUESTION OF INDICATORS IN THE AREA OF INSURANCE FOR EXAMPLE US OFFICIALS SAID THEY HAD PROPOSED MEASURING THE FOREIGN PENETRATION OF THE JAPANESE MARKET THE NUMBER OF APPLICATIONS FOR NEW PRODUCTS APPROVED BY THE JAPANESE GOVERNMENT AND THE PERCENTAGE OF THOSE APPROVALS THAT ARE GRANTED TO FOREIGN COMPANIES THE JAPANESE RESPONDED BY PROPOSING TO TRACK THE NUMBER OF FOREIGN INSURANCE COMPANIES IN JAPAN THAT HAVE JAPANESESPEAKING EXECUTIVES DURING TALKS IN WASHINGTON LAST WEEK MR CUTTER TRIED TO BREAK THE STALEMATE BY SUGGESTING THAT TWO SIDES PUT ASIDE THEIR DISPUTE OVER IMPORT GOALS FOR THE TIME BEING AND CONCENTRATE INSTEAD ON THE INDICATORS BUT NEGOTIATORS SAID THE JAPANESE TURNED HIM DOWN BECAUSE THEY FEARED COMPROMISING ON THE MEASUREMENTS WOULD INEVITABLY LEAD TO AN ACCEPTANCE OF IMPORT GOALS JAPANESE NEGOTIATORS SAY SUCH IMPORT TARGETS WOULD REQUIRE HEAVY GOVERNMENT INTERVENTION AT A TIME WHEN JAPAN WANTS TO DEREGULATE THE ECONOMY THE US DOESN'T TRUST JAPAN TO DO THINGS WITHOUT NUMBERS SAID IM DESTLER A JAPAN TRADE EXPERT AT THE UNIVERSITY OF MARYLAND AND JAPAN DOESN'T TRUST THE US WITH NUMBERS 9402010111 940201 TAKECARE INC DENIES ALLEGATIONS BY HOLDERS ON FIRM'S SALE ACCORD CONCORD CALIF TAKECARE INC DENIED ALLEGATIONS BY A SHAREHOLDER GROUP THAT IT IMPROPERLY INDUCED MANAGEMENT TO SUPPORT A PROPOSED SALE OF THE COMPANY TO FHP INTERNATIONAL CORP TAKECARE SAID IN A FILING WITH THE DELAWARE CHANCERY COURT LAST WEEK THAT BONUSES OFFERED TO R JUDD JESSUP TAKECARE PRESIDENT AND BOARD MEMBER AND OTHERS WEREN'T CONNECTED WITH FHP'S OFFER THE COMPANY SAID A REPRESENTATIVE OF THE SHAREHOLDER GROUP ON ITS BOARD APPROVED THE BONUSES THE SHAREHOLDERS LED BY INVESTOR HENRY L HILLMAN COLLECTIVELY OWN 22 OF TAKECARE'S STOCK LAST MONTH THE GROUP FILED SUIT IN THE DELAWARE COURT SEEKING TO BLOCK AN 829 MILLION ACQUISITION OFFER BY FHP OF FOUNTAIN VALLEY CALIF BOTH TAKECARE AND FHP ARE HEALTHMAINTENANCE ORGANIZATIONS TAKECARE'S FILING ALSO DENIED THE HILLMAN GROUP'S ALLEGATION THAT TAKECARE'S CHAIRMAN JACK R ANDERSON FAILED TO MAXIMIZE SHAREHOLDER VALUE IN HIS HANDLING OF FHP'S BID THE COMPANY SAID MR ANDERSON BOOSTED THE VALUE OF THE FHP OFFER BY 70 MILLION 9402010110 940201 BANCOL SA ACQUISITION NEW YORK BANCOL SA SAID IT PURCHASED A MAJORITY STAKE IN BANCO DE COLOMBIA CLOSING THE PRIVATIZATION OF THE COLOMBIAN BANK IN A TRANSACTION VALUED AT MORE THAN 360 MILLION BANCOL A BOGOTA COLOMBIA HOLDING COMPANY OWNED BY INDUSTRIAL AND BANKING INVESTORS ISAAC AND JAIME GILINSKI SAID IT PURCHASED AND WILL HOLD THE 75 BANCO DE COLOMBIA STAKE BANCO DE COLOMBIA HAS ASSETS OF 2 BILLION 6200 EMPLOYEES 246 BRANCHES IN COLOMBIA A BANK IN PANAMA A BANK IN THE CAYMAN ISLANDS AND FIVEBRANCH EAGLE NATIONAL BANK IN MIAMI 9402010109 940201 TECHNOLOGY & HEALTH DRUG PRICES OUTPACED INFLATION RATE REPORT SAYS INDUSTRY TALLIES 31 RISE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL SEN DAVID PRYOR RELEASED A REPORT THAT SAID THE PHARMACEUTICAL INDUSTRY CONTINUED TO RAISE SOME PRICES OF FREQUENTLY PRESCRIBED DRUGS FAR MORE THAN THE OVERALL INFLATION RATE LAST YEAR THE FINDINGS OF THE REPORT PREPARED BY THE SENATE SPECIAL COMMITTEE ON AGING CALL INTO QUESTION THE ABILITY OF THE MARKETPLACE TO CONTAIN DRUG PRICES SEN PRYOR D ARK SAID ALTHOUGH DRUGPRICE INFLATION IN THE AGGREGATE MODERATED LAST YEAR AVERAGE WHOLESALE PRICES OF MORE THAN TWOTHIRDS OF THE 200 MOST FREQUENTLY PRESCRIBED OUTPATIENT DRUGS ROSE MORE THAN THE 27 INCREASE IN THE CONSUMER PRICE INDEX ACCORDING TO THE REPORT A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION CONCEDED THAT PRICES OF SOME INDIVIDUAL DRUGS ROSE FASTER THAN THE CONSUMER PRICE INDEX BUT HE ARGUED THAT INDUSTRY'S PRICE INCREASES SHOULD BE VIEWED IN THE AGGREGATE ACROSS ALL PRODUCTS AND ALL CUSTOMERS SUCH A COMPARISON WOULD SHOW THAT DRUG PRICE INCREASES HAVE MODERATED TO 31 SEN PRYOR'S REPORT IDENTIFIED THE 25MILLIGRAM DOSE OF LOZOL A HEART DRUG MADE BY RHONEPOULENC RORER INC AS HAVING THE HIGHEST PRICE INCREASE AT 21 THE SECONDHIGHEST INCREASE AT 13 WAS FOR A 200 MILLIGRAM DOSE OF ZOVIRAX AN ANTIVIRAL BY BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC LORCET PLUS A PAIN KILLER MADE BY UAD LABORATORIES A UNIT OF FOREST LABORATORIES INC WAS LISTED WITH A 12 INCREASE A RHONEPOULENC RORER SPOKESMAN DISPUTED THE REPORT'S RATE OF INCREASE FOR LOZOL HE SAID THE COMPANY INCREASED THE PRICE OF LOZOL BY 5 IN JUNE AND 6 IN DECEMBER AFTER DISCOUNTS AND PROMOTIONS IN DECEMBER THE LATEST NET PRICE CHANGE WAS A NEGATIVE 2 HE SAID THE COMPANY LAST YEAR INTRODUCED A LOWERDOSE VERSION THAT HAD A 20 LOWER PRICE HE ADDED OVERALL PRICES FOR RHONEPOULENC RORER PRODUCTS ROSE 23 IN THE US LAST YEAR THE SPOKESMAN SAID A SPOKESMAN FOR FOREST ALSO DISPUTED THE REPORT'S FIGURES BUT SAID HE COULDN'T PROVIDE THE ACTUAL NUMBERS OR COMMENT ON THE REPORT WHICH HE SAID HE HADN'T SEEN THE REPORT USED AVERAGE WHOLESALE PRICES THE EQUIVALENT OF LIST PRICES THAT MANUFACTURERS SUGGEST WHOLESALERS USE WHEN SELLING THEIR PRODUCTS TO COMMUNITY PHARMACISTS THE PRICES DON'T REFLECT ACTUAL PRICES PAID AFTER DISCOUNTS OR PRICES PAID BY HOSPITALS OR MANAGEDCARE GROUPS WHICH CAN EXERT FAR MORE CLOUT THAN COMMUNITY PHARMACIES WHEN NEGOTIATING PRICES MARY AGNES CAREY IN WASHINGTON CONTRIBUTED TO THIS ARTICLE