GRAND RAPIDS MICH OLD KENT FINANCIAL CORP'S BOARD SELECTED 440 FINANCIAL GROUP OF WORCESTER INC TO UNDERWRITE ADMINISTER AND DISTRIBUTE KENT FUNDS THE COMPANY SAID 440 FINANCIAL BASED IN WORCESTER MASS IS A SUBSIDIARY OF STATE MUTUAL LIFE ASSURANCE CO OF AMERICA IN A NEWS RELEASE OLD KENT SAID THE 10 EQUITY BOND AND MONEYMARKET MUTUAL FUNDS HAVE ASSETS OF ABOUT 23 BILLION 9402010107 940201 REVIEW & OUTLOOK EDITORIAL THE HIGH SCHOOL VS THE ACLU AT GLEN RIDGE HIGH SCHOOL IN NEW JERSEY STUDENTS WHO WANT TO TAKE PART IN SPORTS OR OTHER EXTRACURRICULAR ACTIVITIES ARE REQUIRED TO SIGN A PLEDGE THAT THEY'LL REFRAIN FROM USING DRUGS OR ALCOHOL FURTHER THEY PLEDGE NOT TO GET INVOLVED IN ANY ACTIVITY THAT VIOLATES THE CRIMINAL CODE THE PRINCIPAL OF GLEN RIDGE HIGH NOTES THAT THIS LONGSTANDING POLICY IN EFFECT IN MANY OTHER SCHOOLS HAS ALWAYS MET WITH APPROVAL AND SUPPORT FROM STUDENTS AND NOT SURPRISINGLY PARENTS ALIKE SO FAR SO GOOD EXCEPT THAT THE AMERICAN CIVIL LIBERTIES UNION OF NEW JERSEY HAS RECENTLY CHARGED THE SCHOOL WITH UNCONSTITUTIONAL BEHAVIOR ACLU ATTORNEY MARSHA WENK INFORMED US THAT THE CASE CAME DOWN TO THE QUESTION OF STUDENTS' RIGHTS JUST BECAUSE MS WENK EXPLAINED THERE ARE PROBLEMS IN THE SCHOOLS IS NO REASON FOR VIOLATING RIGHTS OF STUDENTS IN ITS ABILITY TO DISCOVER NEW CONSTITUTIONAL RIGHTS THE ACLU IS OF COURSE SECOND TO NONE IN A CROWDED FIELD STILL IT IS AFTER ALL ILLEGAL TO TAKE DRUGS AND INDEED IN THE STATE OF NEW JERSEY FOR PEOPLE UNDER THE AGE OF 18 TO SMOKE ADMINISTRATORS AT GLEN RIDGE HIGH POINT OUT THAT THEY ARE ASKING NO MORE THAN THAT STUDENTS SIGNING ON FOR SPORTS OR SIMILAR ACTIVITIES HONOR THE RULES OF TRAINING AND OF CITIZENSHIP THE ACLU OF NEW JERSEY IS PARTICULARLY AGITATED OVER THE ISSUE OF DISCIPLINING PUPILS FOR BEHAVIOR THAT TAKES PLACE OFF SCHOOL GROUNDS OR AS THE ACLU REPRESENTATIVE PUT IT THE SCHOOL'S EFFORT TO EXTEND THE SCOPE OF CONTROL OVER STUDENTS' LIVES IN THE WORLD OF THE CIVIL LIBERTARIAN BRIGADES THE DARK FORCES OF REPRESSION ARE ALWAYS IN THE WINGS IN TRUTH THERE ARE FORCES OF REPRESSION THE KIND RESPONSIBLE FOR THE CURRENT THREAT TO FREE SPEECH AND ACADEMIC FREEDOM AT WORK IN OUR SCHOOLS AND ON CAMPUSES TODAY REPRESSION HOWEVER HAS NOTHING TO DO WITH WHAT GLEN RIDGE HIGH'S POLICY IS ALL ABOUT THE SCHOOL HAS DONE ITS CHARGES THE HONOR OF EXPECTING THEM TO KEEP PLEDGES UPHOLD AGREEDUPON STANDARDS OF LEGAL BEHAVIOR AND ALSO OF MAINTAINING AN ACCEPTABLE ACADEMIC GRADE TO CONFRONT ANYTHING LIKE EXACTING STANDARDS AND EXPECTATIONS IS FOR MANY YOUNG PEOPLE A WELLNIGH EXOTIC EXPERIENCE NOWADAYS NO WONDER GLEN RIDGE STUDENTS GAVE THE SCHOOL POLICY THEIR WHOLEHEARTED SUPPORT THE ISSUE REACHED THE ATTENTION OF THE ACLU THIS FALL WHEN ONE PERSON WHO SIGNED THE CONTRACT WAS ARRESTED FOR UNDERAGE DRINKING WHICH IN TURN CAUSED THE SCHOOL TO ENFORCE THE TERMS OF AGREEMENT THAT AGREEMENT SAYS THAT STUDENTS WHO SIGN THE PLEDGE AND VIOLATE ITS CONDITIONS ARE TEMPORARILY PROHIBITED FROM ENGAGING IN SPORTS CHEERLEADING OR ANY OTHER SUCH AFTERSCHOOL ACTIVITIES DURING THIS PERIOD OF SUSPENSION THEY ARE ALSO REQUIRED TO MEET WITH SCHOOL ADVISERS FOR COUNSELING THE ACLU'S CHARGE THAT THE SCHOOL THAT SEEKS TO INFLUENCE OUTOFSCHOOL BEHAVIOR IS BEING COERCIVE IS A PERFECT EXAMPLE OF THE KIND OF ABSTRACT HIGH PRINCIPLE THAT HAS UNHINGED SANITY AND COMMON SENSE IN OUR TIME IT IS OF A PIECE WITH THE KIND OF REASONING THAT CAUSED THE DEINSTITUTIONALIZATION OF THE MENTALLY ILL WHO ARE NOW THANKS TO CIVILLIBERTARIANS NO LONGER COERCED INTO TAKING MEDICATION OR CONFINED WHERE THEY CAN DO NEITHER THEMSELVES NOR OTHERS ANY HARM BUT ARE NOW FREE TO LIVE IN DOORWAYS IN SQUALOR AND DEGRADATION TO HEAR FURTHERMORE OBJECTIONS TO A SCHOOL'S EFFORTS TO INFLUENCE OUTOFSCHOOL BEHAVIOR IS ESPECIALLY STRANGE IN AN AGE WHEN SCHOOLS ARE CALLED UPON TO DO EVERYTHING FOR STUDENTS THAT ONCE WAS THE DUTY OF PARENTS INCLUDING GIVING INSTRUCTION IN SEXUAL PRACTICE AND MORALITY SCHOOLS DON'T HAVE THE AUTHORITY TO CONTROL ACTIVITIES OUTSIDE OF SCHOOLS ARGUES THE ACLU OF NEW JERSEY THE ACLU MIGHT WANT TO TRY TELLING THAT TO THE PEOPLE HANDING OUT CONDOMS IN THE SCHOOLS 9402010106 940201 TECHNOLOGY & HEALTH FTC ACTS TO BLOCK HOSPITAL MERGER WIDE IMPACT SEEN BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION SAID IT WANTS TO BLOCK A HOSPITAL MERGER IN PUEBLO COLO ON ANTITRUST GROUNDS IN A MOVE THAT MAY HAVE MAJOR IMPLICATIONS FOR OTHER HOSPITALS' CONSOLIDATION PLANS DURING THE PAST 16 MONTHS US HOSPITALS HAVE BEEN NEGOTIATING MERGERS AT AN UNUSUALLY BRISK RATE THE TREND HAS BEEN FUELED BY AN INDUSTRYWIDE BELIEF THAT MERGERS WILL HELP HOSPITALS TO CUT COSTS HOSPITAL EXECUTIVES ALSO WANT TO JOIN FORCES IN THE HOPES OF BOOSTING THEIR CLOUT IN DEALING WITH LARGE INSURERS AND ANY CHANGES BROUGHT ABOUT BY THE WHITE HOUSE PUSH FOR HEALTHCARE REFORM IN THE PUEBLO CASE HOWEVER THE FTC CONTENDED THAT THE MERGER WOULD SUBSTANTIALLY LESSEN COMPETITION IN HOSPITAL SERVICES FOR PUEBLO COUNTY COLO THE PROPOSED MERGER WOULD UNITE THE COUNTY'S ONLY TWO HOSPITALS MARK WHITENER THE ACTING DEPUTY DIRECTOR OF THE FTC'S BUREAU OF COMPETITION ADDED IT'S OUR BELIEF THAT THIS MERGER WOULD CAUSE PRICES TO CONSUMERS TO RISE THE FTC'S ACTION WAS QUICKLY ASSAILED BY THE AMERICAN HOSPITAL ASSOCIATION A TRADE GROUP THAT REPRESENTS ALMOST 5000 US HOSPITALS THE HOSPITAL GROUP CALLED THE ANTITRUST CASE A CHILLING MESSAGE TO HOSPITALS TRYING TO REDUCE DUPLICATION OF SERVICES AND SERVE THEIR COMMUNITIES MORE COSTEFFICIENTLY EXECUTIVES OF THE TWO HOSPITALS INVOLVED IN THE PROPOSED MERGER ALSO VOICED DISMAY OVER THE FTC'S DECISION THOSE HOSPITALS ARE 326BED ST MARYCORWIN HOSPITAL AND PARKVIEW EPISCOPAL MEDICAL CENTER A 229BED FACILITY IN A JOINT STATEMENT THE TWO HOSPITALS CONTENDED THAT THEY COULD FACE SERIOUS FINANCIAL DIFFICULTIES IF THE MERGER DOESN'T GO THROUGH THE HOSPITALS ADDED THAT THEY FOUND THE GOVERNMENT'S OVERALL STAND ON HEALTHCARE MERGERS VERY CONFUSING LAST WEEK THE JUSTICE DEPARTMENT GAVE ITS GOAHEAD TO A MERGER IN A DIFFERENT TWOHOSPITAL TOWN MANCHESTER NH MEANWHILE THE CLINTON ADMINISTRATION HAS SPELLED OUT PLANS FOR SWEEPING HEALTHSYSTEM REFORM WHICH IN AT LEAST SOME RESPECTS WOULD CONCENTRATE POWER IN THE HANDS OF LARGE ENTITIES TO PURSUE ITS ANTITRUST CASE THE FTC SAID IT WILL SEEK A PRELIMINARY INJUNCTION IN DENVER FEDERAL COURT BLOCKING THE MERGER IF THE FTC WINS SUCH AN INJUNCTION THE HOSPITALS SAID THEY COULD EITHER FIGHT THE CASE IN COURT DECIDE TO COLLABORATE ON A SMALLER SCALE OR ABANDON MERGER PLANS ENTIRELY HOSPITAL ANTITRUST SPECIALISTS SAY THEY WILL BE WATCHING THE PUEBLO CASE CLOSELY TO SEE IF IT SHEDS NEW LIGHT ON TWO LEGAL ISSUES THAT OFTEN COME UP IN HOSPITALMERGER CASES ONE CONTENTIOUS ISSUE INVOLVES THE SIZE OF THE MARKET IN WHICH THE HOSPITALS COMPETE THE FTC STAFF IS PRESSING FOR A NARROW DEFINITION ARGUING THAT THE HOSPITALS HAVE A MONOPOLY IN PUEBLO COUNTY THE HOSPITALS HAVE ARGUED FOR A BROADER VIEW CONTENDING THAT THEY MAY SOON COMPETE WITH HOSPITALS IN DENVER AND COLORADO SPRINGS FOR PATIENTS 9402010105 940201 ABREAST OF THE MARKET STOCKS SOAR AS GREENSPAN GIVES UPBEAT ASSESSMENT OF ECONOMY BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS SOARED TO HIGHS AFTER A SURPRISINGLY UPBEAT REPORT ON THE ECONOMY FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN MOVING WITHIN STRIKING DISTANCE OF THE 4000 MARK THE DOW JONES INDUSTRIAL AVERAGE JUMPED 3293 POINTS TO 397836 ITS THIRDSTRAIGHT RECORD STANDARD & POOR'S 500 STOCK INDEX ALSO ROLLED TO A HIGH CLIMBING 291 TO 48161 AND THE NASDAQ COMPOSITE INDEX GAINED 394 POINTS TO 80047 ANOTHER RECORD TRADING WAS EXTREMELY HEAVY VOLUME ON THE NEW YORK STOCK EXCHANGE SWELLED TO 322750000 SHARES FROM 312630000 SHARES FRIDAY ACCORDING TO THE NEW YORK STOCK EXCHANGE JANUARY AS A WHOLE WAS THE BUSIEST MONTH ON RECORD FOR THE BIG BOARD WITH TOTAL VOLUME OF AROUND 66 BILLION SHARES OCTOBER 1987 THE MONTH OF THE STOCK MARKET CRASH HAD BEEN THE BUSIEST AT 61 BILLION SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 1396 TO 733 STOCKS ANALYSTS SAID THAT WHILE THE EQUITY MARKET WAS POISED FOR A RALLY AFTER FRIDAY'S STRONG REPORT ON FOURTHQUARTER GROSS DOMESTIC REPORT YESTERDAY'S GAINS WERE HELPED BY MR GREENSPAN GREENSPAN'S TESTIMONY ABOUT THE ECONOMY WAS EXTREMELY UPBEAT SAID STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST ADDED JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS FOR THE STOCK MARKET I SUSPECT THE MOST IMPORTANT ELEMENT WAS THE OPTIMISTIC VIEW OF THE SUSTAINABILITY OF ECONOMIC GROWTH THAT WAS OFFERED BY GREENSPAN ALTHOUGH STOCK PRICES CLEARLY WERE FIRED UP BY MR GREENSPAN'S COMMENTS BEFORE THE JOINT ECONOMIC COMMITTEE THE STAGE FOR A RALLY IN STOCKS WAS SET HOURS EARLIER IN TOKYO WHERE THE NIKKEI STOCK AVERAGE ROCKETED AFTER THE JAPANESE PARLIAMENT ENDORSED A SERIES OF POLITICAL REFORM BILLS IN ADDITION ANALYSTS SAID THERE WERE SEVERAL POSITIVE DEVELOPMENTS ON THE CORPORATE FRONT THAT HELPED UNLEASH THE POWERFUL GAINS IN STOCKS NEWS THAT THE MAJOR ALUMINUMPRODUCING NATIONS AGREED TO CUT GLOBAL PRODUCTION BOOSTED ALUMINUM STOCKS DRIVING ALUMINUM CO OF AMERICA A COMPONENT OF THE DOW UP 2 7/8 TO 79 1/8 INVESTORS ARE BETTING THAT ALUMINUM PRICES AFTER BEING DEPRESSED FOR SEVERAL YEARS WILL FIRM UP IN THE WAKE OF A PRODUCTION CUTBACK AUTO STOCKS JUMPED ON REPORTS THAT AUTO MAKERS ARE EXPECTED TO EXTINGUISH CASH REBATES FOR NEWCAR BUYERS BECAUSE THE STRENGTHENING ECONOMY IS LIKELY TO CONTINUE TO SPUR RISING DEMAND CHRYSLER RACED 1 5/8 POINT HIGHER TO 61 1/2 FORD 1 3/4 TO 67 AND GENERAL MOTORS 2 TO 61 1/4 INVESTORS NODDED FAVORABLY AFTER UNITED TECHNOLOGIES NAMED PRESIDENT AND CHIEF OPERATING OFFICER GEORGE DAVID CHIEF EXECUTIVE UNITED TECHNOLOGIES SURGED 2 3/8 TO 67 3/8 STOCK BUYERS ALSO LIKED AETNA LIFE & CASUALTY'S MOVE FRIDAY TO ELIMINATE 4000 JOBS OR 10 OF ITS WORK FORCE AETNA ADDED 3 1/2 POINTS TO 63 3/8 IT WAS PRETTY MUCH A GOOD NEWS DAY ALL AROUND SAID GAIL DUDACK STOCK STRATEGIST AT SG WARBURG IT WASN'T JUST IN THE US AND IT WASN'T JUST THE ECONOMY SHARES OF XEROX JUMPED 5 1/2 OR 59 TO 98 1/8 THE COMPANY REPORTED FOURTHQUARTER OPERATING PROFIT OF 207 A SHARE BEFORE CHARGES OF 813 MILLION COMPARED WITH 207 IN THE YEAREARLIER PERIOD IN OTHER EARNINGSRELATED ACTIVITY TELLABS NASDAQ SLIPPED 3 OR 61 TO 46 AFTER POSTING FOURTHQUARTER NET INCOME OF 67 CENTS A SHARE THAT COMPARES FAVORABLY WITH YEAREARLIER NET OF 46 CENTS BUT ONLY MATCHED WHAT ANALYSTS HAD EXPECTED ALLEGHENY LUDLUM SHED 1 1/2 OR 63 TO 22 1/4 AFTER REPORTING FOURTHQUARTER NET OF 25 CENTS A SHARE INCLUDING A GAIN OF 9 CENTS COMPARED WITH 17 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED THE COMPANY TO EARN 25 CENTS A SHARE BEFORE THE GAIN GENERAL DATACOMM INDUSTRIES ROSE 19 OR 2 1/4 TO 14 ON POSITIVE COMMENTS FROM SOUNDVIEW FINANCIAL GROUP THE BROKERAGE FIRM INITIATED COVERAGE OF THE STOCK WITH A LONGTERM BUY RATING AND SAID THE DATAPROCESSING AND TELECOMMUNICATIONSEQUIPMENT FIRM IS WELLPOSITIONED AS A LONGTERM PLAYER IN THE MARKET FOR ATM OR ASYNCHRONOUS TRANSFER MODE SWITCHES ON THE AMERICAN STOCK EXCHANGE TRIARC COS FORMERLY DWG CORP TUMBLED 3 3/8 OR 14 TO 20 7/8 IN HEAVY TRADING OPPENHEIMER & CO ANALYST MICHAEL BUNYANER SLASHED HIS 1994 EARNINGS ESTIMATE FOR THE NEW YORK CONGLOMERATE TO A RANGE OF 120 TO 130 A SHARE FROM HIS ORIGINAL ESTIMATE OF 225 A SHARE BUT STILL RECOMMENDS PURCHASE OF THE STOCK THE COMPANY'S ROYAL CROWN COLA CO UNIT NEGLECTED UNDER FORMER DWG CHAIRMAN VICTOR POSNER HAS HIGHERTHANEXPECTED MARKETING AND OTHER EXPENSES MR BUNYANER SAID IN A REPORT AND ITS TEXTILE UNIT GRANITEVILLE CO IS UNDERGOING A CYCLICAL SLOWDOWN SOONER THAN HE ANTICIPATED SHARES OF MAXXIM MEDICAL AMEX SLIPPED 1 TO 18 THE SUGARLAND TEXAS MEDICALPRODUCT SUPPLY COMPANY FILED WITH THE SEC FOR A SECONDARY OFFERING OF 24 MILLION COMMON SHARES MAXXIM SAID TWO MILLION SHARES TOGETHER WITH ANY OVERALLOTMENT SHARES ARE NEW SHARES BEING SOLD BY THE COMPANY NOVELL IMPROVED 3/4 TO 22 5/8 THE COMPUTERSOFTWARE COMPANY SAID IT HAS BEGUN SHIPPING NOVELL DOS 7 AN UPGRADE TO DR DOS 60 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 9402010104 940201 TREASURY ESTIMATES ITS BORROWING NEEDS FOR THE FIRST QUARTER WASHINGTON THE TREASURY SAID ITS NET MARKET BORROWING NEEDS IN THE FIRST QUARTER ARE EXPECTED TO BE 45 BILLION WITH A 20 BILLION CASH BALANCE ON MARCH 31 THE TREASURY ALSO ESTIMATED ITS NET MARKET BORROWING NEEDS FOR THE SECOND QUARTER TO BE IN A RANGE OF 15 BILLION TO 20 BILLION WITH A 30 BILLION CASH BALANCE AT THE END OF JUNE A TREASURY SPOKESWOMAN WAS UNSURE WHETHER THE FUNDING ESTIMATES INCLUDED EXPECTED SPENDING FOR THE RESOLUTION TRUST CORP THE FEDERAL AGENCY THAT DEALS WITH FAILED SAVINGSANDLOAN INSTITUTIONS IN THE NOVEMBER ANNOUNCEMENT OF ITS BORROWING NEEDS FOR THE FIRST QUARTER THE TREASURY HAD ESTIMATED NET MARKET BORROWING IN THE RANGE OF 60 BILLION TO 65 BILLION ASSUMING A 35 BILLION CASH BALANCE ON MARCH 31 ACTUAL MARKET BORROWING IN THE QUARTER THAT ENDED DEC 31 1993 WAS 846 BILLION WITH AN ENDOFQUARTER CASH BALANCE OF 497 BILLION 9402010103 940201 WHO'S NEWS DEERE & CO DEERE & CO MOLINE ILL PIERRE E LEROY FORMERLY TREASURER AND VICE PRESIDENT BUSINESS DEVELOPMENT AND PLANNING AT THIS FARMEQUIPMENT MANUFACTURER WAS NAMED TO THE NEWLY CREATED POST OF CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE AND ACCOUNTING MR LEROY 45 YEARS OLD WILL MAINTAIN RESPONSIBILITY FOR BUSINESS DEVELOPMENT AND PLANNING THE TREASURER'S POSITION HASN'T YET BEEN FILLED IN THE NEW POST THE COMPANY SAID MR LEROY ASSUMES PART OF THE DUTIES OF SEVERAL EXECUTIVES INCLUDING SOME THAT HAD BEEN HELD BY EUGENE SCHOTANUS 56 WHO CONTINUES IN HIS PRIMARY ROLE OF OVERSEEING DEERE'S CREDIT INSURANCE AND HEALTHCARE BUSINESSES 9402010102 940201 PARAMOUNT INVESTORS HANG ON TO STOCK HOPING FOR LASTMINUTE INCREASE IN BIDS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS HELD ON TO THEIR STOCK IN PARAMOUNT COMMUNICATIONS INC IN HOPES OF SEEING HIGHER BIDS IN THE 4 1/2MONTHOLD TAKEOVER BATTLE BY TODAY'S 5 PM BIDDING DEADLINE VIACOM INC COULD HAVE WON CONTROL OF PARAMOUNT YESTERDAY IF PARAMOUNT STOCKHOLDERS HAD TENDERED 501 OF THE PUBLISHING AND ENTERTAINMENT GIANT'S SHARES UNDER VIACOM'S 97 BILLION OFFER SINCE RIVAL BIDDER QVC NETWORK INC DIDN'T MAKE A CHANGE IN ITS 102 BILLION OFFER BUT SOME TAKEOVERSTOCK TRADERS SAID THEY DECIDED NOT TO TENDER THEIR SHARES TO VIACOM A CABLETELEVISION PROGRAMMER SO THEY COULD GET A LOOK AT A POSSIBLE NEW OFFER SAID TO BE UNDER CONSIDERATION BY QVC DIRECTORS AT A BOARD MEETING YESTERDAY QVC DIDN'T ISSUE ANY STATEMENT AFTER YESTERDAY'S MEETING SURPRISING SOME TRADERS WHO HAD EXPECTED THE HOMESHOPPING COMPANY TO MAKE ITS INTENTIONS KNOWN IN ORDER TO ENSURE THAT INVESTORS DIDN'T ACCEPT THE VIACOM BID PARAMOUNT HAD ENDORSED THE LATEST VIACOM OFFER DESPITE ITS LOWER MARKET VALUE BECAUSE IT CONTAINS MORE CASH THAN QVC'S BID AS WELL AS A SECURITY DESIGNED TO PROVIDE AN ADDITIONAL PAYMENT IF VIACOM'S CLASS B SHARES DON'T RISE IN PRICE FOLLOWING A VIACOMPARAMOUNT COMBINATION UNDER BIDDING PROCEDURES AGREED TO BY VIACOM AND QVC BOTH COMPANIES ARE TO MAKE THEIR FINAL OFFERS BY 5 PM TODAY IF THERE IS A WIDE GAP BETWEEN THE OFFERS THAT COULD DETERMINE THE OUTCOME HOWEVER THERE ARE SEVERAL SCENARIOS UNDER WHICH THE WINNER WOULDN'T BE KNOWN IMMEDIATELY BOTH VIACOM AND QVC HAVE TO KEEP THEIR OFFERS OPEN FOR 10 BUSINESS DAYS UNTIL FEB 14 TO SEE IF EITHER BIDDER CAN GAIN 501 OF PARAMOUNT'S STOCK AND WIN THE CONTEST THEN THE WINNER HAS TO KEEP ITS BID OPEN FOR ANOTHER 10 DAYS TO ALLOW INVESTORS WHO DIDN'T TENDER THEIR SHARES TO DO SO IF THE BIDS ARE CLOSE BOTH QVC AND VIACOM ARE EXPECTED TO MOUNT INTENSIVE CAMPAIGNS TO SOLICIT SHARES BY FEB 14 IN ADDITION TRADERS HAVE SPECULATED THAT BELLSOUTH CORP WHICH IS ALREADY A QVC INVESTOR COULD ANNOUNCE A PLAN TO BUY ADDITIONAL QVC SHARES WHICH BY ITSELF COULD BOOST THE PERCEIVED VALUE OF QVC'S CASHANDSTOCK BID AFTER THE DEADLINE ALSO ONE OR BOTH SIDES COULD ELECT TO MAKE A LARGE INCREASE IN ITS OFFER AFTER THE DEADLINE ALTHOUGH SUCH A MOVE WOULD CERTAINLY RISK A LAWSUIT BY THE HIGH BIDDER THE PARAMOUNT BOARD MIGHT HAVE AN OBLIGATION TO ITS SHAREHOLDERS TO ALLOW A MUCHHIGHER OFFER EVEN IF IT'S MADE AFTER THE BIDDING DEADLINE SET BY PARAMOUNT THE PROCESS WOULD ALSO CONTINUE IF NEITHER SIDE GAINED A MAJORITY OF THE SHARES BY FEB 14 PARAMOUNT SHARES DROPPED 25 CENTS TO 79625 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE QVC SHARES ROSE 25 CENTS TO 44 ON THE NASDAQ STOCK MARKET VIACOM B SHARES DROPPED 75 CENTS TO 3525 ON THE AMERICAN STOCK EXCHANGE 9402010101 940201 US RAWSTEEL OUTPUT CLIMBED 8 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 8 LAST WEEK TO 1800000 TONS FROM 1667000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 21 FROM THE 1763000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 874 OF ITS CAPABILITY LAST WEEK COMPARED WITH 809 THE PREVIOUS WEEK AND 839 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9402010100 940201 POLITICS & POLICY UNIVERSAL COVERAGE FOR HEALTH INSURANCE BACKED BY TWO INFLUENTIAL REPUBLICANS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO LEADING REPUBLICAN SENATORS ON HEALTH ISSUES SAID HEALTHCARE REFORM LEGISLATION SHOULD PROVIDE FOR UNIVERSAL INSURANCE COVERAGE ONE WEEK AFTER PRESIDENT CLINTON THREATENED TO VETO ANY HEALTHCARE BILL THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY SENS JOHN CHAFEE OF RHODE ISLAND AND DON NICKLES OF OKLAHOMA BOTH SAID THEY THINK IT IS IMPORTANT TO GUARANTEE EVERY AMERICAN AT LEAST SOME HEALTH COVERAGE OUR BILL PROVIDES FOR UNIVERSAL COVERAGE I THINK THAT'S AN ABSOLUTE ESSENTIAL SEN CHAFEE SAID DURING AN AMERICAN HOSPITAL ASSOCIATION CONVENTION SEN NICKLES ADDED THAT HIS BILL SAYS EVERYONE IN AMERICA SHOULD HAVE AT LEAST CATASTROPHIC COVERAGE AND THAT IS A GIANT STEP IN THE RIGHT DIRECTION THE TWO GOP SENATORS AUTHORS OF TWO OF THE PRINCIPAL GOP HEALTH BILLS IN THE SENATE HAVE ENDORSED UNIVERSAL COVERAGE IN THE PAST BUT THEIR COMMENTS TOOK ON HEIGHTENED SIGNIFICANCE IN THE WAKE OF THE PRESIDENT'S VETO THREAT THEIR COMMENTS SHOW THAT THE ADMINISTRATION STILL COULD HAVE SOME REPUBLICAN BACKING FOR A UNIVERSALCOVERAGE BILL A NUMBER OF REPUBLICANS HAVE SUGGESTED IN RECENT DAYS THAT THE US DOESN'T FACE A HEALTHCARE CRISIS AND NEEDS ONLY SMALL LEGISLATIVE STEPS TO FIX THE MEDICAL SYSTEM DESPITE THE PRESIDENT'S INSISTENCE ON UNIVERSAL COVERAGE ADMINISTRATION OFFICIALS INDICATED YESTERDAY THAT THE ADMINISTRATION MAY BE WILLING TO COMPROMISE ON WHEN TO ACHIEVE THAT GOAL A TOP ADMINISTRATION OFFICIAL SAID THE WHITE HOUSE IS WILLING TO CONSIDER EXTENDING THE TIMETABLE FOR ACHIEVING UNIVERSAL COVERAGE BEYOND THE 1998 DEADLINE IT HAS PROPOSED THAT COULD BRING THE WHITE HOUSE TROUBLE FROM THE LEFT REP JAMES MCDERMOTT D WASH AUTHOR OF A BILL THAT WOULD ESTABLISH A GOVERNMENTRUN TAXPAYERFINANCED NATIONAL HEALTHINSURANCE SYSTEM TOLD REPORTERS AT A SEPARATE LUNCHEON THAT STRAYING MUCH BEYOND 1998 WOULD BE UNACCEPTABLE SEPARATELY THE NATION'S GOVERNORS CALLED ON MR CLINTON AND CONGRESS TO PASS HEALTHCARE REFORM THIS YEAR AND THEY ASKED THAT IT INCLUDE A SERIES OF CHANGES THAT HAVE BIPARTISAN SUPPORT AMONG THE STATE CHIEF EXECUTIVES AT THE WINTER MEETING OF THE NATIONAL GOVERNORS' ASSOCIATION HERE THE GOVERNORS CALLED FOR LEGISLATION THAT INCLUDES INSURANCE REFORM STATEORGANIZED INSURANCE PURCHASING COOPERATIVES A CORE BENEFITS PACKAGE FULL TAXDEDUCTIBILITY FOR HEALTHCARE PREMIUMS SUBSIDIES FOR THE POOR AND MALPRACTICE AND LIABILITY REFORM THE GOVERNORS ALSO REPORTED THAT IN A CLOSEDDOOR MEETING AT THE WHITE HOUSE MR CLINTON REITERATED HIS WILLINGNESS TO COMPROMISE ON BOTH HIS PLAN'S PROVISION TO CREATE MANDATORY HEALTHINSURANCE ALLIANCES AND ITS CALL FOR NATIONAL HEALTHCARE BUDGETS BUT REPUBLICAN GOV CARROLL CAMPBELL OF SOUTH CAROLINA REPORTED THAT THE WHITE HOUSE DIDN'T APPEAR SIMILARLY INCLINED TO BE FLEXIBLE ON ITS PLAN TO REQUIRE EMPLOYERS TO PAY THE BULK OF EMPLOYEES' HEALTH BENEFITS GOV CAMPBELL SAID THE SOCALLED EMPLOYER MANDATE WILL BE A MAJOR STUMBLING BLOCK WITH THE GOP GERALD F SEIB CONTRIBUTED TO THIS ARTICLE 9402010099 940201 FOREIGN EXCHANGE DOLLAR DROPS IN WAKE OF SURGE BY YEN CLINTON DISPUTES FED'S CHIEF ON RATES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR STUMBLED YESTERDAY AS THE YEN DREW STRENGTH FROM THE THIRD STEEPEST RISE IN TOKYO STOCK MARKET HISTORY FUELED BY OPTIMISM OVER PASSAGE OF JAPAN'S LONGSTALLED POLITICALREFORM PACKAGE DURING THE WEEKEND IN ADDITION ANY HOPES FOR A DOLLAR RECOVERY AFTER ALAN GREENSPAN FEDERAL RESERVE CHAIRMAN SAID INTEREST RATES WILL RISE EVENTUALLY WERE IMMEDIATELY PUT TO REST WHEN PRESIDENT CLINTON TERMED LOW INTEREST RATES CRITICAL TO THE US ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17345 MARKS DOWN FROM 17425 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10870 YEN DOWN FROM 110 YEN STERLING WAS TRADING AT 15060 UP FROM 14945 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10825 YEN AND AT 17340 MARKS THE NIKKEI INDEX OF 225 SELECTED ISSUES ROCKETED 78 TO A THREEMONTH HIGH OF 2022912 AFTER MORIHIRO HOSOKAWA JAPAN'S PRIME MINISTER PUSHED THROUGH THE COMPROMISE REFORM PACKAGE ON WHICH HE HAD STAKED HIS POLITICAL CAREER PASSAGE OF MR HOSOKAWA'S ANTICORRUPTION MEASURES OPENED UP THE WAY FOR HIS COALITION GOVERNMENT TO FOCUS ON ECONOMICSTIMULUS MEASURES TO REVIVE JAPAN'S FLAGGING ECONOMY INDEED BULLISHNESS OVER JAPAN'S ECONOMY WAS FURTHER PRODDED BY VARIOUS STATEMENTS BY JAPANESE OFFICIALS THAT AN ECONOMICSTIMULUS PACKAGE WOULD BE ANNOUNCED THURSDAY SUCH A PACKAGE COULD STRENGTHEN THE YEN BECAUSE MARKET INTEREST RATES IN JAPAN PROBABLY WILL CLIMB IF THE GOVERNMENT DECIDES TO BORROW SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT THE BANK OF BOSTON HOWEVER IT WASN'T IMMEDIATELY CLEAR WHETHER AN ECONOMICSTIMULUS PACKAGE WOULD IN FACT ADD MUSCLE TO THE YEN A STIMULUS PACKAGE IF COMBINED WITH A TEARING DOWN OF TRADE BARRIERS AGAINST US GOODS AND SERVICES COULD ALSO DAMP ANY US PRESSURE TO KEEP THE YEN STRONG THE YEN HAS BEEN EXTREMELY SENSITIVE TO COMMENTS BY US OFFICIALS CRITICAL OF JAPAN'S HUGE TRADE SURPLUSES AND DEPLORING A WEAK YEN AS A TOOL FOR STIMULATING THE DOMESTIC ECONOMY INDEED LAST FEBRUARY'S CALLS BY TREASURY SECRETARY LLOYD BENTSEN FOR A STRONG YEN AS A WAY OF MITIGATING JAPAN'S TRADE IMBALANCE DUG A PATH FOR THE YEN'S HISTORICAL HIGHS AGAINST THE DOLLAR BY AUGUST MEANWHILE MR GREENSPAN MADE CLEAR IN TESTIMONY BEFORE CONGRESS'S JOINT ECONOMIC COMMITTEE THAT US INTEREST RATES EVENTUALLY WOULD RISE THE FOUNDATIONS OF THE ECONOMIC EXPANSION ARE LOOKING INCREASINGLY WELLENTRENCHED HE SAID SHORTTERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE BUT TRADERS NOTED THAT MR GREENSPAN FAILED TO SPECIFY WHEN RATES WOULD GO HIGHER OR WHAT IT WOULD TAKE TO TRIGGER THAT RATE INCREASE WHAT'S MORE THE FED CHIEF'S COMMENTARY WAS QUICKLY COUNTERED BY MR CLINTON WHO IMMEDIATELY CALLED FOR A CONTINUATION OF LOW INTEREST RATES SAYING THERE IS NO EVIDENCE THAT INFLATION IS RETURNING TO THE ECONOMY WE WANT THE ECONOMY TO GROW IN A VERY STABLE SOLID WAY MR CLINTON SAID ADDING OBVIOUSLY LOW INTEREST RATES ARE CRITICAL TO THAT 9402010098 940201 COOPER COS AUDITORS QUESTION COMPANY'S ABILITY TO CONTINUE FORT LEE NJ COOPER COS MIRED IN COSTLY LEGAL EXPENSES REPORTED A NARROWER FOURTHQUARTER LOSS BUT SAID AUDITORS QUESTIONED THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN THE MAKER OF MEDICAL PRODUCTS SAID ITS POTENTIAL LEGAL LIABILITIES AS WELL AS LOSSES AND NEGATIVE CASH FLOWS FOR THE LAST THREE FISCAL YEARS RAISED CONCERNS ABOUT ITS FINANCIAL STRENGTH WITH OUTSIDE AUDITORS COOPER AND ITS FORMER COCHAIRMAN GARY SINGER FACE POSSIBLY STIFF FINES AND SENTENCING ON MARCH 25 FOR THEIR CONVICTIONS IN AN ILLEGAL JUNKBOND TRADING SCHEME THE COMPANY ALSO FACES RELATED CIVIL CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AND LAST FALL SETTLED LAWSUITS RELATED TO ITS FORMER BREASTIMPLANT BUSINESS WHICH IT SOLD IN 1988 TO BRISTOLMYERS SQUIBB CO COOPER SAID IT MAY CONTINUE TO FACE CASH SHORTAGES COOPER REPORTED A FOURTHQUARTER LOSS OF 115 MILLION OR 38 CENTS A SHARE DUE PARTLY TO INVESTMENT LOSSES AND LEGAL EXPENSES THE LATEST QUARTER INCLUDED A 21 MILLION PRETAX CHARGE FOR DEBT RESTRUCTURING AND A 15MILLION PRETAX CHARGE FOR THE SETTLEMENT OF VARIOUS LAWSUITS IN THE YEAREARLIER QUARTER COOPER REPORTED A NET LOSS OF 17 MILLION OR 56 CENTS A SHARE INCLUDING A 7 MILLION CHARGE TO RESERVE FUNDS FOR BREASTIMPLANT LITIGATION AND A SMALL GAIN ON THE PURCHASE OF SUBORDINATED DEBT REVENUE FOR THE QUARTER EDGED UP 1 TO 221 MILLION FROM 219 MILLION FOR THE YEAR THE COMPANY SAID ITS LOSS WIDENED TO 468 MILLION OR 155 A SHARE FROM 248 MILLION OR 96 CENTS A SHARE IN 1992 THE 1993 RESULTS INCLUDE A CHARGE OF 137 MILLION LARGELY FOR RESERVES FOR BREASTIMPLANT LEGAL EXPENSES THE 1992 RESULTS INCLUDED A CHARGE OF 93 MILLION LARGELY FOR LEGAL EXPENSES REVENUE FOR THE YEAR CLIMBED 46 TO 927 MILLION THE STOCK CLOSED AT 5625 CENTS A SHARE UP 625 CENTS OR 125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9402010097 940201 WHO'S NEWS TEXACO INC TEXACO INC WHITE PLAINS NY CLARENCE P CAZALOT JR PRESIDENT OF TEXACO'S LATIN AMERICA/WEST AFRICA DIVISION WILL BECOME PRESIDENT OF TEXACO EXPLORATION AND PRODUCTION INC MR CAZALOT 43 YEARS OLD WILL SUCCEED EARL L JOHNSON 63 WHO IS RETIRING AFTER 41 YEARS WITH THE COMPANY PATRICK J LYNCH 56 VICE PRESIDENT AND COMPTROLLER OF TEXACO WILL BECOME PRESIDENT OF THE COMPANY'S LATIN AMERICA/WEST AFRICA DIVISION ROBERT OELKERS 49 SENIOR VICE PRESIDENT OF THE COMPANY'S REFINING AND MARKETING UNIT HAS BEEN ELECTED COMPTROLLER SUCCEEDING MR LYNCH LESTER A AMIDEI JR 49 GENERAL MANAGER OF CORPORATE PLANNING AND ECONOMICS WILL ASSUME MR OELKERS'S POST ALL THE CHANGES TAKE EFFECT MARCH 1 9402010096 940201 BMW TO BUY 80 CONTROL OF ROVER CARS IN 12 BILLION DEAL FIRM TO ENTER US MARKET FOR OFFROAD VEHICLES BY WALL STREET JOURNAL REPORTERS AUDREY CHOI IN MUNICH RICHARD L HUDSON IN LONDON AND OSCAR SURIS IN DETROIT BMW AGREED TO PAY 12 BILLION FOR 80 CONTROL OF BRITISH AUTO MAKER ROVER CARS IN A COUP THAT WOULD NEARLY DOUBLE THE GERMAN LUXURYCAR MAKER'S SALES AND VAULT IT INTO THE LUCRATIVE US MARKET FOR SPORT UTILITY VEHICLES WITH THE VENERABLE LAND ROVER NAME BRITISH AEROSPACE PLC ROVER'S PARENT ACCEPTED A LASTMINUTE OFFER FROM BAYERISCHE MOTOREN WERKE AG ON SATURDAY AFTER HONDA MOTOR CO OF JAPAN PASSED UP A CHANCE TO BUY THE 80 OF ROVER CARS IT DOESN'T ALREADY OWN HONDA HOLDS ITS 20 STAKE THROUGH A FOURYEAROLD CROSSSHAREHOLDING ALLIANCE THAT INCLUDES EXTENSIVE MANUFACTURING AND PRODUCT SHARING BETWEEN THE COMPANIES THE ROVER ALLIANCE ALSO GAVE HONDA A VALUABLE FOOTHOLD IN THE HEAVILY PROTECTED EUROPEAN MARKET HONDA OFFICIALS WERE CLEARLY MIFFED BY THE BMW AGREEMENT WHICH IS SUBJECT TO APPROVAL BY BRITISH AEROSPACE SHAREHOLDERS IN A STATEMENT HONDA SAID THE DECISION BY BRITISH AEROSPACE TO SELL ITS SHARES IN ROVER TO BMW NEGATES THE LONGTERM EFFORTS BETWEEN HONDA AND ROVER TO ESTABLISH A FIRM FUTURE FOR ROVER AS A BRITISH COMPANY WITH ITS OWN BRAND IDENTITY HONDA ALSO LEFT OPEN THE POSSIBILITY THAT IT WILL PULL BACK FROM PRODUCTSHARING DEALS WITH ROVER SHOULD BMW GAIN CONTROL BMW OFFICIALS EXPRESSED THEIR HOPE THAT HONDA'S AGREEMENTS WITH ROVER WILL CONTINUE IN EVERY RESPECT BUT BMW EXECUTIVES COULDN'T RESIST CROWING EITHER THIS IS DIFFERENT FROM THE NORMAL TAKEOVER A TRIUMPHANT CHAIRMAN BERND PITSCHETSRIEDER SAID DURING A LONDON NEWS CONFERENCE IN THIS CASE HE SAID TWO PLUS TWO IS FIVE FOR BMW THE DEAL ALSO OFFERS ANOTHER OPPORTUNITY TO UPSTAGE THE DAIMLERBENZ AG UNIT WHICH BMW SURPASSED LAST YEAR IN WORLDWIDE SALES FOR THE FIRST TIME WITH ROVER BMW COULD IMMEDIATELY HAVE THREE SPORT UTILITY VEHICLES TO SELL IN THE US RANGING IN PRICE FROM 50000 RANGE ROVERS TO A NEW MODEL THE DISCOVERY EXPECTED TO MAKE ITS DEBUT IN APRIL AT PRICES BELOW 30000 THE DISCOVERY IN PARTICULAR COULD GRAB SALES FROM THE SEGMENT'S VOLUMELEADERS FORD MOTOR CO'S EXPLORER AND CHRYSLER CORP'S GRAND CHEROKEE MERCEDESBENZ ISN'T EXPECTED TO SELL ITS FIRST SPORTS UTILITY VEHICLE IN THE US UNTIL 1997 WHEN ITS 300 MILLION PLANT IN TUSCALOOSA ALA BEGINS PRODUCING THEM WE ARE ON THE FAST TRACK INTO THIS SEGMENT SAID HELMUT PANKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BMW'S US UNIT LAND ROVER GIVES BMW INSTANT BRAND RECOGNITION AND A US DISTRIBUTION NETWORK THAT HAD ITS BEST YEAR EVER LAST YEAR SELLING 4907 VEHICLES AND NOW PLANS TO EXPAND ITS PRODUCT OFFERINGS AND SALES OUTLETS ROVER'S 84 US DEALERS ARE REVAMPING TO BECOME LAND ROVER CENTRES THAT WILL HIGHLIGHT THE COMPANY'S EXPERTISE IN FOURWHEEL DRIVE VEHICLES MR PANKE SAID BMW'S 350 US DEALERSHIPS COULD OFFER LAND ROVER VEHICLES BUT THE COMPANY WILL FIRST CONSULT ITS DEALERS BEFORE ADOPTING THAT STRATEGY IN EUROPE BMW STANDS TO GAIN AS WELL THAT'S BECAUSE ROVER IS STRONG IN MARKET NICHES AND COUNTRIES WHERE BMW IS WEAK AND VICE VERSA A COMBINED BMWROVER COULD OFFER A FULL RANGE OF VEHICLES FROM TINY SUBCOMPACTS LIKE ROVER'S MINI TO BMW'S LARGE LUXURY MODELS TO THE LAND ROVER AND RANGE ROVER TRUCKS ALL WITH NO ADDITIONAL RESEARCH AND DEVELOPMENT EXPENDITURES THAT GIVES BMW A HUGE TIME JUMP ON MERCEDES WHICH IS TRYING TO ENTER MANY OF THESE SAME NICHES THROUGH DEVELOPING PRODUCTS ON ITS OWN MOREOVER ROVER AND BMW COULD CUT PURCHASING AND PRODUCTION COSTS BY SHARING THOSE ACTIVITIES AND SPREADING COSTS OVER LARGER SALES VOLUMES ROVER SOLD ABOUT 442000 VEHICLES WORLDWIDE LAST YEAR BMW WORLDWIDE SALES TOTALED 534000 IN 1993 INCLUDING 78010 CARS IN THE US TOGETHER BMW PREDICTED THE TWO COMPANIES COULD SELL MORE THAN ONE MILLION VEHICLES A YEAR SHARES IN BOTH BMW AND BRITISH AEROSPACE ROSE ON THE NEWS IN FRANKFURT BMW JUMPED 5650 MARKS OR 83 TO 73950 3243 TO 42451 AT THE END OF FLOOR TRADING IN LONDON BRITISH AEROSPACE JUMPED 57 PENCE OR 13 TO 499 85 CENTS TO 746 NOT EVERYONE IN THE FINANCIAL COMMUNITY IS AS SANGUINE SHORTLY AFTER THE DEAL WAS ANNOUNCED STANDARD & POOR'S PUT THE A1 RATINGS FOR COMMERCIAL PAPER SOLD BY BMW AND BMW US CAPITAL CORP ON CREDITWATCH WITH NEGATIVE IMPLICATIONS AT THE SAME TIME S&P PUT BRITISH AEROSPACE'S SINGLEAMINUS SENIOR DEBT RATING AND ITS A2 COMMERCIAL PAPER RATING ON CREDITWATCH WITH POSITIVE IMPLICATIONS BRITISH AEROSPACE PAID 250 MILLION FOR ITS STAKE IN ROVER CARS IN 1988 THE COMPANY SAID PROCEEDS FROM THE CASH SALE TO BMW WILL BE USED TO REDUCE DEBT AND ENHANCE EARNINGS THE ROVER SALE MARKS THE PASSING OF BRITAIN'S LAST HIGHVOLUME CAR MAKER INTO FOREIGN OWNERSHIP HONDA'S HESITATION TO TAKE MAJORITY CONTROL OF ROVER WHEN BRITISH AEROSPACE OFFERED IT MAY HAVE STEMMED FROM HONDA'S FEAR OF GETTING CAUGHT IN A NATIONALISTIC BACKLASH BRITISH AEROSPACE OFFICIALS SAID THE COMPANY MADE CLEAR TO HONDA THAT IT WANTED TO LEAVE THE CARMAKING BUSINESS ENTIRELY SO IT COULD FOCUS ON CORE DEFENSE AND AEROSPACE BUSINESSES ON AUG 12 BRITISH AEROSPACE GOT A FREE HAND TO SHOP ITS ROVER STAKE AROUND WHEN A PLEDGE IT HAD MADE TO THE BRITISH GOVERNMENT TO HOLD ROVER SHARES FOR AT LEAST FIVE YEARS EXPIRED ON THAT DATE LATE LAST WEEK WITH HONDA STILL BALKING BMW SWEPT IN WITH ITS OFFER TO BUY BRITISH AEROSPACE'S 100 OWNERSHIP OF ROVER GROUP HOLDINGS LTD ROVER GROUP HOLDINGS IN TURN OWNS 80 OF ROVER CARS WHICH IN ADDITION TO LAND ROVER OWNS SUCH WELLLOVED BRITISH NAMES AS TRIUMPH MG MORRIS MINOR AND AUSTIN MINI 9402010095 940201 HEARD ON THE STREET FIRST CHICAGO'S MAKEOVER MAY DRAW BEVY OF SUITORS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NOW THAT RICHARD THOMAS HAS FINISHED MAKING OVER FIRST CHICAGO HE MAY HAVE HIS HANDS FULL FIGHTING OFF SUITORS THE BIG CHICAGO BANK THE 11TH LARGEST NATIONWIDE IS BELIEVED TO HAVE ALREADY REBUFFED AN OVERTURE FROM BANKAMERICA WHICH ON FRIDAY DISCLOSED ITS 19 BILLION PROPOSAL TO TAKE OVER CONTINENTAL BANK FIRST CHICAGO'S CROSSTOWN RIVAL ANALYSTS AND INVESTMENT BANKERS SAY FIRST CHICAGO REMAINS ONE OF THE MOST ATTRACTIVE CANDIDATES IN THE MARKET THESE DAYS FOR A BANK MERGER OR ACQUISITION NOT ONLY BECAUSE OF ITS VASTLY IMPROVED FUNDAMENTALS BUT ALSO BECAUSE OF ITS STRATEGIC CHICAGO LOCATION EVERYBODY AND THEIR BROTHER ARE TRYING TO GET INTO CHICAGO SAYS DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS FIRST CHICAGO WOULD BE A VERY NICE FIT WITH A LOT OF FOLKS BUT IT HAS TO BE SOMEONE WHO HAS AN INTEREST IN BOTH RETAIL AND WHOLESALE BANKING NEWS OF THE CONTINENTAL PURCHASE PROPELLED FIRST CHICAGO'S COMMON STOCK UP 1 3/4 TO 46 3/4 ON HEAVY VOLUME FRIDAY AS INVESTORS SPECULATED THAT IT COULD BE NEXT YESTERDAY FIRST CHICAGO'S SHARES CLOSED AT 47 UP 1/4 MR THOMAS WHO TOOK OVER THE HELM OF FIRST CHICAGO TWO YEARS AGO DOWNPLAYS THE IDEA THAT FIRST CHICAGO IS ON THE BLOCK I WOULDN'T READ ANYTHING INTO OUR STOCK HE SAID IN AN INTERVIEW FRIDAY WE HAVE OUR OWN GAME PLAN THERE'S NO REASON TO THINK WHY THIS SHOULD AFFECT OUR STRATEGY OF REMAINING INDEPENDENT AND HEADQUARTERED IN CHICAGO TAKEOVER FEVER ASIDE FIRST CHICAGO IS ONE OF THE CHEAPEST BANK STOCKS ON THE MARKET ANALYSTS SAY AT CURRENT PRICES THE STOCK TRADES AT 88 TIMES TRAILING EARNINGS HALF THE AVERAGE MULTIPLE FOR THE STOCK MARKET AS A WHOLE IT LOOKS LIKE AN EVEN BETTER BARGAIN BASED ON FUTURE EARNINGS TRADING AT 59 TIMES WALL STREET'S CONSENSUS ESTIMATE FOR 1994 IF THAT WEREN'T ENOUGH IT ALSO SPORTS A TEMPTING 34 YIELD IT'S A VERY VERY CHEAP BANK STOCK WITH ABOVEAVERAGE EARNINGS POTENTIAL SAID VALUE INVESTOR DAVID DREMAN WHOSE FIRM OWNS MORE THAN ONE MILLION SHARES OF FIRST CHICAGO IT'S CLEANED UP A LOT OF ITS PROBLEMS MR THOMAS GETS MOST OF THE CREDIT FOR THE MAKEOVER HAVING SHED BOATLOADS OF PROBLEM REAL ESTATE BUILT UP CREDITCARD OPERATIONS AND FOCUSED THE BANK MORE TIGHTLY ON WHOLESALE BUSINESSES SUCH AS CORPORATE LENDING AND CUSTODIAL SERVICES FIRST CHICAGO REPORTED 1993 EARNINGS OF 878 A SHARE UP SHARPLY FROM 64 CENTS A SHARE IN 1992 WHEN IT INCURRED A BIG LOSS TO WRITE DOWN ITS REALESTATE PORTFOLIO FROM A STRATEGIC POINT OF VIEW FIRST CHICAGO HAS A LOT TO OFFER BOTH INVESTORS AND POTENTIAL PARTNERS IT'S THE LARGEST BANK IN THE MIDWEST SITTING IN THE MIDDLE OF THE INDUSTRIAL HEARTLAND OF THE US AN AREA CURRENTLY ENJOYING SOMETHING OF AN ECONOMIC RENAISSANCE COMPARED WITH THE TWO COASTS THE BANK COMPANY SPANS THREE ATTRACTIVE LINES OF BUSINESS WHOLESALE BANKING CREDIT CARDS AND RETAIL BRANCH BANKING AND HAS BEEN ACQUIRING SMALLER BANKS TO EXPAND ITS RETAIL FRANCHISE BOTH IN CHICAGO AND IN THE CITY'S AFFLUENT SUBURBS ANALYSTS SAY FIRST CHICAGO WOULD FIT WELL AS A MERGER OF EQUALS WITH ANOTHER MIDWESTERN OR EASTERN BANK THE CONTINENTAL TAKEOVER ONLY DRAWS EXTRA ATTENTION TO THE OPPORTUNITIES IN MIDWEST BANKING AND IN THE CHICAGO MARKET IN PARTICULAR INDEED THERE ISN'T ANY DEARTH OF POTENTIAL SUITORS FOR FIRST CHICAGO ANALYSTS AND TAKEOVER ADVISERS SAY SAYS ONE INVESTMENT BANKER OF FIRST CHICAGO WE COULD HAVE A NICE '80S STYLE SEALEDBID AUCTION AND HAVE A REAL GOOD TIME KEEFE BRUYETTE'S MR BERRY POINTS TO NATIONSBANK OF CHARLOTTE NC AS ONE POSSIBLE CANDIDATE A LINKUP WITH FIRST CHICAGO WOULD SUIT THAT BANK'S GOALS OF EXPANDING ITS ACTIVITIES IN CREDIT CARDS AND WHOLESALE BANKING HE SAYS MEANWHILE NATIONSBANK CHAIRMAN HUGH MCCOLL RECENTLY INDICATED HE'D BE INTERESTED IN DIVERSIFYING INTO THE MIDWEST STATE LAWS THAT CURRENTLY RESTRICT NATIONSBANK FROM BUYING OUTSIDE ITS REGION COULD BE LIFTED THIS YEAR FRIDAY A NATIONSBANK SPOKESWOMAN DECLINED COMMENT ON ITS PLANS OTHER STRONG REGIONALS SUCH AS BANC ONE OF COLUMBUS OHIO HAVE ALREADY SET UP SHOP IN CHICAGO SUBURBS AND ARE LOOKING AT THE WINDY CITY ITSELF BANK OF MONTREAL WHICH ALREADY OWNS CHICAGOBASED HARRIS BANK SAYS IT TOO WANTS TO SIGNIFICANTLY EXPAND ITS BUSINESS NORWEST A FASTGROWING MINNEAPOLIS BANKING COMPANY WITH OFFICES IN ALL 50 STATES WOULD LIKE TO BE BIGGER IN ILLINOIS BUT WHETHER THAT OCCURS OR NOT WHO KNOWS SAYS CHIEF EXECUTIVE OFFICER RICHARD KOVASEVICH MY BELIEF IS IF YOU ENTER A MARKET IT HAS TO BE ON A PRETTY BIG SCALE FOR NOW OUR FOCUS IN ILLINOIS IS REALLY OUTSIDE CHICAGO HE ADDS AMONG EAST COAST BANKS MR BERRY SAYS NEW YORKBASED BANK OF NEW YORK WOULD BE A GOOD FIT WITH FIRST CHICAGO PNC BANK OF PITTSBURGH MIGHT BE ALSO INTERESTED INVESTMENT BANKERS SAY REPRESENTATIVES OF BANK OF MONTREAL BANK OF NEW YORK BANC ONE AND PNC DECLINED COMMENT INVESTORS WHO THINK FIRST CHICAGO IS RIPE FOR A TAKEOVER SHOULDN'T MORTGAGE THE HOUSE QUITE YET BANKS HAVE WIDE LATITUDE IN PICKING MERGER CANDIDATES OR DECIDING WHETHER TO MERGE AT ALL AND FIRST CHICAGO CLEARLY WISHES TO REMAIN INDEPENDENT ITS DIRECTORS MANY OF WHOM ARE CHICAGO'S TOP CORPORATE VIPS BELIEVE THE CITY SHOULD HAVE AT LEAST ONE REMAINING INDEPENDENT BANK AND ARE OPPOSED TO BEING GOBBLED UP BY OUTOFTOWNERS FIRST CHICAGO EXECUTIVES SAY SUCH PROVINCIALISM DOESN'T NECESSARILY THRILL THE BANK'S SHAREHOLDERS AS A SHAREHOLDER OF COURSE WE WANT TO MAXIMIZE SHAREHOLDER VALUE SAYS MR DREMAN IF SOMEBODY CAME ALONG WITH AN EXCELLENT OFFER WE'D OBVIOUSLY WANT THE BOARD TO LOOK AT IT WHILE RETIREMENTS CAN OFTEN BE THE SPARK FOR BANK MERGERS THE 63YEAROLD MR THOMAS ALREADY CHOSE LEO MULLIN A WELLRESPECTED FORMER MCKINSEY CONSULTANT AS HIS SUCCESSOR IN NOVEMBER MR THOMAS DOESN'T PLAN TO STEP DOWN FOR ABOUT ANOTHER TWO YEARS HOWEVER MEANWHILE NOT ALL ANALYSTS ARE BULLISH ON FIRST CHICAGO THE BANK HAS BEEN RECENTLY CRITICIZED FOR PAYING TOO MUCH FOR CHICAGO'S LAKE SHORE BANCORP A SMALL COMMUNITY BANK WHICH IT BOUGHT FOR 26 TIMES BOOK VALUE THE PURCHASE RAISED QUESTIONS ON WALL STREET ABOUT WHETHER FIRST CHICAGO WILL SPEND TOO MUCH TO DEFEND ITSELF FROM STRONG REGIONAL RIVALS THE QUESTION IS WHETHER THEIR REACHING OUT TO BROADEN THEIR BASE WILL BE COSTLY TO SHAREHOLDERS SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH WHO HAS A HOLD RECOMMENDATION ON THE BANK 9402010093 940201 MONDAY'S MARKETS STOCKS HIT NEW HIGHS BONDS DROP INDUSTRIAL AVERAGE IS NEAR 4000 LEVEL WITH RISE OF 3293 BY STEVEN E LEVINGSTON AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL STOCK PRICES BARRELED TO NEW RECORDS AS INVESTORS RODE THE MARKET'S CONTINUING MOMENTUM BONDS AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 3293 POINTS TO 397836 STANDARD & POOR'S 500STOCK INDEX JUMPED 291 TO 48161 AND THE NASDAQ COMPOSITE INDEX SURGED 394 TO 80047 ALL WERE RECORDS INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS ESPECIALLY ALUMINUM AND AUTO CONCERNS ALUMINUM STOCKS BENEFITED FROM REPORTS THAT MAJOR ALUMINUMPRODUCING COUNTRIES AGREED TO CUT OUTPUT AUTO STOCKS WERE BUOYED BY EXPECTATIONS OF CONTINUED IMPROVEMENT IN THE US CAR INDUSTRY INVESTORS ALSO WERE ENCOURAGED BY COMMENTS ON THE ECONOMY BY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN AS THE MARKET CLOSED MANY TRADERS EXPRESSED CONFIDENCE THAT THE 4000 BARRIER ON THE DOW WILL SOON BE BREACHED TOMORROW FOR SURE WITH THE MOMENTUM GOING THE WAY IT IS SAID PETER DAPUZZO SENIOR MANAGING DIRECTOR AT CANTOR FITZGERALD IN NEW YORK HE ADDED HOWEVER THAT PROFITTAKING AFTER CROSSING THAT MILESTONE MAY LEAVE THE INDUSTRIAL AVERAGE BELOW 4000 AT THE CLOSE ECONOMIC AND MONETARY CONDITIONS LOOK SO FAVORABLE THAT MANY STRATEGISTS ARE HARDPRESSED TO FIND A DARK CLOUD ON THE HORIZON JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO SAID ONE POSSIBLE DANGER IS POLITICAL OR ECONOMIC DISINTEGRATION IN RUSSIA IT'S A VOLATILE SITUATION THAT COULD BREAK DOWN AT ANY TIME HE SAID BUT WAITING FOR THAT TO HAPPEN COULD BE HAZARDOUS TO YOUR WEALTH BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY NOTED THAT THE STOCK MARKET IS STILL BENEFITING FROM HUGE SEASONAL INFLOWS INTO MUTUAL FUNDS RIGHT NOW WE'RE STILL IN THE MOST FAVORABLE PART OF THAT CYCLE MR WIEN SAID BUT HE EXPECTS THE FLOOD INTO MUTUAL FUNDS TO SLOW IN FEBRUARY AND MARCH IN PREPARATION FOR A STOCKMARKET DOWNTURN OF AS MUCH AS 10 IN THE NEXT FEW MONTHS MR WIEN HAS BEEN INCREASING THE CASH PORTION OF HIS PORTFOLIO MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO SAID MANY INVESTORS WHO VENTURED OVERSEAS WERE RATTLED BY THE RECENT SHARP PRICE SWINGS IN FOREIGN MARKETS A LOT OF MOMENTUM PLAYERS ARE AFRAID TO GO OVERSEAS NOW SO THEY'RE COMING HOME MR METZ SAID BUT HE ARGUED THAT PRICES IN THE US ARE CLIMBING TO DANGEROUS LEVELS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 347 TO 11860 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 3228 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1396 ISSUES ROSE AND 733 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 623 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17345 MARKS AND 10870 YEN COMPARED WITH 17425 MARKS AND 110 YEN FRIDAY 9402010092 940201 COLLIDING CLICHES AND OTHER MISHAPS ON THE TERM PIKE THE BIG PHRASE OF THE DAY IS INFORMATION SUPERHIGHWAY AND THE TRAFFIC IS TERRIBLE BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL IT'S ENOUGH TO MAKE YOU BEG FOR A REST STOP WITH BUMPERTOBUMPER TRAFFIC EXPECTED ON THE VAUNTED INFORMATION SUPERHIGHWAY CONSUMERS ARE APT TO BE BLINDED BY THE GLARE OF ONCOMING TECHNOLOGIES SAYS FORTUNE MAGAZINE REMEMBER SOME CUSTOMERS WILL WANT TO BE CHAUFFEURED OTHERS WILL WANT THE WHEEL THEMSELVES BUT ONE WAY OR ANOTHER ALL WILL BE IN THE DRIVER'S SEAT THE CITY OF PLANO TEXAS SHOULD HAVE AN ONRAMP TO THE INFORMATION SUPERHIGHWAY A LOCAL SCHOOL OFFICIAL TELLS A REPORTER WE DON'T WANT TO BE TOO FAR ON THE MEDIAN AND TOO FAR ON THE CURB THE NETWORKS SAYS COMEDIAN SINBAD HOSTING CABLETV'S ACE AWARDS ARE NO LONGER THE BIG HOJO ON THE INFORMATION SUPERHIGHWAY THE METAPHORS ARE PILING UP ON THE ELECTRONIC INTERSTATE LIKE JACKKNIFED TRACTORTRAILERS AND THERE ISN'T AN OFFRAMP IN SIGHT I THOUGHT WE COULD KEEP TORTURING THE ANALOGY UNTIL PEOPLE STOPPED USING IT SAYS ALLEN RUCKER THE LOS ANGELES COMEDY WRITER RESPONSIBLE FOR THE SINBAD JOKE WE PROBABLY FAILED INDEED THE INFORMATION SUPERHIGHWAY SEEMS TO HAVE UNLIMITED MILEAGE AND NO BRAKES THE PHRASE MERGED INTO THE FAST LANE AS POLITICIANS TOUTED ROAD MAPS FOR HANDLING RAPID CHANGES IN TELECOMMUNICATIONS NOW IT'S VEERING OUT OF CONTROL THE MEDIA ARE THE BIGGEST ROAD HOGS CONSIDER THE ACCOUNTS OF A LOS ANGELES SPEECH LAST MONTH BY VICE PRESIDENT AL GORE WHO CLAIMS TO HAVE FATHERED THE TERM INFORMATION SUPERHIGHWAY DEPENDING ON THE STORY THAT YOU READ MR GORE WAS STEERING DOWN THE INFORMATION SUPERHIGHWAY RAISING SPEED LIMITS INSTALLING CHECKPOINTS OFFERING AN EASIER RIDE EARNING HIS LEARNER'S PERMIT OR PUTTING THE PEDAL TO THE METAL MR GORE WAS SEEN ALTERNATIVELY AS HANDING INDUSTRY THE KEYS TO THE TOLLBOOTH OR TRYING TO KEEP DISADVANTAGED PEOPLE FROM BEING STRANDED ON THE SHOULDER PROMOTERS ARE HITCHING RIDES ON THE INFO PIKE TOO TV ADS FOR MCI COMMUNICATIONS CORP TOUTING THE NEW ROAD HAVE CHILD ACTRESS ANNA PAQUIN SAYING WITH AN 11YEAROLD'S ENTHUSIASM ITS SPEED LIMIT WILL BE THE SPEED OF LIGHT DAVID LETTERMAN IN A PROMO SAYS HIS LATE SHOW ON CBS IS LIKE AN INFORMATION SUPERHIGHWAY WITHOUT THE INFORMATION NEW TWISTS IN THE ROAD KEEP TURNING UP A TELEPHONE TRADE GROUP TALKS OF WANTING TO SAVE AN EMERGENCY LANE ON THE SUPERHIGHWAY AN NBC OFFICIAL WARNS OF DRIVEBY SHOOTINGS ON THE INFORMATION SUPERHIGHWAY THERE ARE EVEN SHARP TURNS INTO MIXED METAPHORS ONE OF THEM A REFERENCE TO RIVERBOAT GAMBLERS ON THE MIGHTY THOROUGHFARE ALL OF WHICH RAISES THE QUESTION JUST WHAT IS THE INFORMATION SUPERHIGHWAY ANYWAY THE ANSWER IS AS ELUSIVE AS THE KANSAS HORIZON ON I70 SOME SAY IT'S A FUTURE NETWORK OF FIBEROPTIC LINES THAT WILL STRETCH ACROSS THE COUNTRY GIVING EVERYBODY HITHERTO UNIMAGINED SERVICES THROUGH THEIR TV SETS OTHERS SAY IT'S THE INTERNET AN EXISTING NETWORK THAT ALLOWS PEOPLE TO CONVERSE BY TYPING ON HOME COMPUTERS ACTUALLY THE INFORMATION SUPERHIGHWAY IS WIDE ENOUGH TO INCLUDE A SLEW OF ACTIVITIES RANGING FROM OFFTRACK BETTING TO VIDEOSONDEMAND HOME SHOPPING AND THE LONGHERALDED PICTURE PHONE NOBODY KNOWS WHETHER ALL THAT MANY PEOPLE WILL ACTUALLY WANT TO GO WITH THE FLOW OF TRAFFIC SO FAR IT'S JUST A LOT OF PUFF SAYS DENNIS BARON A UNIVERSITY OF ILLINOIS ENGLISH PROFESSOR WHO HAS BEEN TRACKING THE PHRASE INFORMATION SUPERHIGHWAY STILL HE SAYS THOSE WHO COMPLAIN ABOUT THE PHRASE ARE MERELY ENSHRINING IT IF YOU LISTEN LONG ENOUGH YOU'LL FIND THEM USING IT TOO IT'S A MORONIC TERM COMPLAINS PAUL SAFFO OF THE INSTITUTE FOR THE FUTURE A MENLO PARK CALIF CONSULTING FIRM NOBODY WOULD DARE USE IT ON THE INTERNET HE SAYS OTHER USERS WOULD CONSIDER THEM DWEEBS BUT A FEW MINUTES LATER HE IS CALLING NEXT INC WORKSTATION COMPUTERS THE DE LOREAN OF THE INFORMATION HIGHWAY SEAGATE TECHNOLOGY INC CHIEF EXECUTIVE ALAN SHUGART MAKES FUN OF THE TERM TOO BUT AIDES SAY THAT WHILE RIDING ON THE NEW JERSEY TURNPIKE RECENTLY HE SUCCUMBED TO THE LURE OF THE ROAD BOASTING HIS DISKDRIVE COMPANY WAS OUT TO PUT UP THE SIGNS SELL THE MAPS AND OWN THE RESTAURANTS ON THE SELFSAME INFORMATION SUPERHIGHWAY THE INDUSTRY HAS FLIRTED WITH ROAD IMAGERY SINCE AS FAR BACK AS 1910 WHEN AMERICAN TELEPHONE & TELEGRAPH CO IN ITS ANNUAL REPORT PROMISED A TELEPHONE SYSTEM AS UNIVERSAL AND AS EXTENSIVE AS THE HIGHWAY SYSTEM VICE PRESIDENT GORE'S FATHER SEN ALBERT GORE OF TENNESSEE WAS A BIG WHEEL IN ESTABLISHING THE INTERSTATE HIGHWAY SYSTEM AS A CHILD YOUNG AL SAT IN ON CONGRESSIONAL HEARINGS THAT DECIDED THE COLOR OF SIGNS AND THE SIZE OF LANES ON THE INTERSTATES HE SAYS HE COINED THE PHRASE INFORMATION HIGHWAY IN 1978 DURING A MEETING WITH COMPUTERINDUSTRY OFFICIALS MOST PEOPLE INTERESTINGLY ARE WILLING TO GIVE FULL CREDIT TO MR GORE FOR COMING UP WITH THE PHRASE WHICH HE MADE THE CENTERSTRIP OF HIS VICE PRESIDENTIAL CAMPAIGN IN 1992 NOW SOME FOLKS SEEM ACTUALLY TO CONFUSE AL JR'S HIGHWAYS WITH AL SR'S FEDERAL HIGHWAY ADMINISTRATION OFFICIALS SAY THEY HAVE BEEN ASKED IF THEY WORK ON THE INFORMATION SUPERHIGHWAY TALK SHOW HOST DICK CAVETT KICKING OFF A RECENT INFORMATION SUPERHIGHWAY SUMMIT IN LOS ANGELES SAID WHEN I THINK OF HIGHWAYS I THINK OF SOMETHING LONG AND BORING THAT 50000 PEOPLE ARE KILLED ON EVERY YEAR AND AS WAS BOUND TO HAPPEN SOME COMMUNICATIONSINDUSTRY LEADERS THINK THE METAPHOR HAS RUN OUT OF GAS BUT ALTERNATIVES SUCH AS INFORMATION CANALS AND INFORMATION SKYWAYS DON'T HAVE WHEELS TECHNOLOGY CONSULTANT CHARLES MORRIS IS PROMOTING INFORMATION OCEAN DATA FLOAT AROUND UNTIL NEEDED BUT EVEN THAT ISN'T VAST ENOUGH FOR ONE WHITE HOUSE AIDE WHO USES IDEASPACE DISCREETLY HE SAYS TO AVOID OFFENDING MR GORE THE VICE PRESIDENT ISN'T YET READY TO YIELD ON THE INFORMATION SUPERHIGHWAY HE STILL THINKS IT'S AN APPROPRIATE METAPHOR A SPOKESWOMAN SAYS BUT LATELY EVEN MR GORE HAS ROLLED HIS EYES AT WHAT HE HAS WROUGHT FOR EXAMPLE A BUSINESS WORRIED ABOUT BECOMING ROADKILL MR GORE HIMSELF NOW SOMETIMES SPEAKS OF THE METAPHORPROOF NATIONAL INFORMATION INFRASTRUCTURE STILL THE INFORMATION SUPERHIGHWAY ROLLS ON THE AMERICAN DIALECT SOCIETY VOTED THE PHRASE WORD OF THE YEAR FOR 1993 9402010091 940201 LEISURE & ARTS ON SPORTS THE 'BOYS WEAR DOWN THE BILLS IN XXVIII BY FREDERICK C KLEIN TO WATCH A LOT OF SUPER BOWL GAMES IS TO BECOME A CONNOISSEUR OF ROUTS THE ONE SUNDAY NIGHT BY THE DALLAS COWBOYS OVER THE BUFFALO BILLS WAS UNUSUAL IN THAT THE LOSERS LED AT HALFTIME AND WERE IN A TIE UNTIL ALMOST MIDWAY THROUGH THE THIRD QUARTER BUT ONCE THE TIDE HAD TURNED THE GAME HAD THE FEELING OF INEVITABILITY EVEN TO THE PARTICIPANTS OUR IDEA IS TO POUND ON THE OTHER TEAM 'TIL THEY CAN'T TAKE IT ANYMORE SAID ONE OF THE CHIEF POUNDERS THE COWBOYS' 325POUND OFFENSIVE GUARD NATE NEWTON FOOTBALL'S A 60MINUTE GAME AND EVEN WHEN WE WERE BEHIND WE DIDN'T THINK ANYBODY COULD STAY WITH US THAT LONG THE FINAL SCORE IN THE SPIFFY GEORGIA DOME WAS 3013 BUT IT COULD HAVE BEEN WORSE FROM BUFFALO'S STANDPOINT DALLAS OUTSCORED ITS MISTAKEPRONE FOE 240 IN THE SECOND HALF AND THE COUNT WOULD HAVE BEEN 280 IF A LATEFOURTHQUARTER DRIVE THAT BROUGHT THE WINNERS TO A FIRSTDOWNANDGOAL FROM THE BUFFALO ONEYARD LINE HADN'T BEEN STALLED BY A PENALTY AND ENDED WITH A FIELD GOAL NO MATTER THOUGH TURNOVERS USUALLY DETERMINE A GAME'S OUTCOME AND WE HANDED THEM SEVERAL BUT REALLY THEY'RE AN AWFULLY GOOD TEAM SAID A WEARY MARV LEVY THE COACH OF A TEAM THAT HAS NOW LOST FOUR OF THESE PROFESSIONAL FOOTBALL CHAMPIONSHIP GAMES IN SUCCESSION THEY HAVE GREAT RUNPASS BALANCE ON OFFENSE AND A VERY GOOD DEFENSE TO BEAT THEM YOU HAVE TO HAVE DONE MORE THAN WE DID THE OUTCOME HAD BEEN WIDELY ANTICIPATED THE COWBOYS WERE A HEFTY 10 1/2 POINT FAVORITE GOING IN AND WHILE THE 'BOYS' SKILLS WERE THE IMMEDIATE CAUSE HISTORY ALSO SEEMED TO BE ON THEIR SIDE THIS WAS EDITION XXVIII OF A GAME SO SELFIMPORTANT THAT IT EMPLOYS THE NUMBERS OF THE CAESARS AND XV OF THEM HAVE BEEN DECIDED BY XIV POINTS OR MORE THE COMMON DEFINITION OF ISIDEDNESS THROW IN THE ADDITIONAL IV GAMES IN WHICH THE MARGIN HAS BEEN X TO XIII POINTS AND YOU HAVE A PRECEDENT THAT'S WEIGHTY INDEED GIVEN THE COWBOYS' 5217 IN EARTHBOUND ARABIC NUMERALS VICTORY IN LAST YEAR'S BIG GAME OVER MUCH THE SAME BUFFALO TEAM AND THE WASHINGTON REDSKINS' 3724 CONQUEST OF THE BILLS IN THE 1992 CONTEST QUITE A BIT OF THE PREGAME DISCUSSION DWELT ON WHY THE SUPER BOWL IS SO OFTEN UNCOMPETITIVE MOST OF THE ANSWERS HAD TO DO WITH SUCH NOTIONS AS MOMENTUM SWINGS AND THE RISKTAKING ASSOCIATED WITH THE GAME'S ALLORNOTHING NATURE CLOSER TO THE TRUTH THOUGH IS THE FACT THAT ONE TEAM IN THESE THINGS HAS BEEN A HECKUVA LOT BETTER THAN THE OTHER FOR ALL ITS ASSERTED SUBTLETIES FOOTBALL IS A GAME IN WHICH APPEARANCES RARELY DECEIVE AND ONE GANG CAN BE JUST PLAIN BIGGER TOUGHER AND QUICKER THAN ITS FOE THE COWBOYS QUALIFIED ON ALL COUNTS SUNDAY THEIR SHEER PHYSICAL DOMINANCE CAME THROUGH BEST IN THE THIRDQUARTER DRIVE THAT PUT THEM AHEAD TO STAY IT INVOLVED EIGHT PLAYS THAT COVERED 64 YARDS SEVEN OF WHICH WORTH 61 YARDS WERE RUNS BY STUMPY EMMITT SMITH THE BRILLIANT RUNNING BACK WHO WAS NAMED THE GAME'S MOST VALUABLE PLAYER FIVE OF THE RUNS WENT TO THE RIGHT BEHIND THE BLOCKS OF KEVIN GOGAN THE 6FOOT7 328POUND RIGHT GUARD ERIK WILLIAMS THE 6FOOT6 324POUND RIGHT TACKLE AND THE ABOVEMENTIONED NEWTON WHO SWUNG HIS 6FOOT3 FRAME OVER FROM HIS LEFTGUARD STATION PUT ME ERIK AND NATE IN FRONT OF EMMITT AND THE DEFENSE HAS TROUBLE SEEING HIM GOGAN GIGGLED LATER WE COULD HAVE TOLD 'EM WE WERE COMING AND IT WOULDN'T HAVE MATTERED MUCH SAID NEWTON DALLAS'S NEXT TOUCHDOWN ON A 34YARD DRIVE SET UP BY A JAMES WASHINGTON INTERCEPTION OF A JIM KELLY PASS WAS MUCH THE SAME WITH SMITH RUNNING ON SIX OF ITS NINE PLAYS IT GAVE THE 'BOYS A 2713 LEAD THAT WASN'T ABOUT TO BE SURMOUNTED SAFETY WASHINGTON WAS THE WINNERS' MAIN DEFENSIVE HERO BESIDES HIS INTERCEPTION HE CAUSED A FIRSTQUARTER FUMBLE BY THE BILLS' THURMAN THOMAS THAT SET UP A DALLAS FIELD GOAL AND PICKED UP ANOTHER BOBBLE BY POOR THOMAS ON THE THIRD PLAY OF THE SECOND HALF AND ZIGZAGGED 46 YARDS WITH IT FOR THE TOUCHDOWN THAT TIED THE SCORE AT 13 THE GLIB LOS ANGELES NATIVE IS MAKING A HABIT OF SUCH HEROICS AN INTERCEPTION OF HIS ALSO FIGURED PROMINENTLY IN LAST YEAR'S SUPER BOWL AGAIN THOUGH IT WAS DALLAS'S OVERALL DEFENSE THAT SHONE EARLIER IN THE WEEK KELLY HAD SAID HIS TEAM COULDN'T WIN BY COMPLETING A LOT OF SHORT PASSES BUT THAT WAS EXACTLY WHAT DALLAS FORCED UPON HIM 31 COMPLETIONS FOR 260 YARDS AND THE EFFORT DEMANDED A PERFECTION HE COULDN'T SUSTAIN WE KNEW MISTAKES WERE INEVITABLE AND WE JUST WANTED TO BE THERE WHEN THEY HAPPENED WASHINGTON NOTED IN WINNING A SECOND STRAIGHT NATIONAL FOOTBALL LEAGUE TITLE THE COWBOYS JOINED ELITE COMPANY ONLY GREEN BAY MIAMI PITTSBURGH AND SAN FRANCISCO HAVE DONE THAT DURING THE SUPER BOWL ERA THEY ARE A YOUNG TEAM IN KEY POSITIONS SMITH IS 24 YEARS OLD MONSTER BLOCKER WILLIAMS IS 25 AND QUARTERBACK TROY AIKMAN AND MIDDLE LINEBACKER KEN NORTON ARE 27 AND DESPITE THE VAGARIES OF PLAYER FREE AGENCY AND LEAGUE SALARY CAPS THEY WILL BE FAVORED TO DO THIS AGAIN NEXT YEAR ONE POSSIBLE FLY IN THEIR OINTMENT IS INJURIES AIKMAN SUFFERED SHOULDER WOES DURING THE SEASON PLUS A CONCUSSION THAT BLANKED OUT MOST OF THE PREVIOUS WEEK'S PLAYOFF WIN AGAINST THE SAN FRANCISCO 49ERS SMITH ALSO HAD SHOULDER INJURIES THAT BODE LESS WELL FOR A RUNNER THAN A PASSER ANOTHER IS THE RELATIONSHIP BETWEEN COWBOY COACH JIMMY JOHNSON AND OWNER JERRY JONES WHOSE EGOS MAY NEED MORE ROOM THAN TEXAS CAN OFFER JOHNSON'S HYPE WEEK PRONOUNCEMENTS SHIFTED BETWEEN EXPRESSING LOVE FOR THE COWBOYS TO HINTING THAT HE'D RELISH THE CHALLENGE OF BUILDING AN NFL EXPANSION TEAM IT WAS HARD TO KNOW WHICH STANCE TO TAKE SERIOUSLY FOR A REASON JOHNSON HIMSELF PROVIDED RELATING HOW AS COACH AT OKLAHOMA STATE UNIVERSITY HE'D TOLD BLUECHIP RECRUIT THURMAN THOMAS HE'D STAY FOR FOUR YEARS ONLY TO LEAVE FOR THE UNIVERSITY OF MIAMI BEFORE THE INK WAS DRY ON THOMAS'S COMMITMENT HE GAVE THIS EXPLANATION I DIDN'T EXACTLY PROMISE HIM I'D STAY IT WAS MORE LIKE IT WAS MY OPINION AT THE TIME CAN'T EXACTLY TAKE THAT TO THE BANK CAN YOU 9402010090 940201 LEISURE & ARTS BOOKSHELF SOULS IN DISTRESS BY MERLE RUBIN BRITISH NOVELIST BIOGRAPHER AND JOURNALIST AN WILSON WHOSE PREVIOUS TWO BOOKS WERE A LIFE OF JESUS AND A POLEMICAL LOOK AT THE ACCELERATING EMBARRASSMENTS OF THE ROYAL HOUSE OF WINDSOR FINDS AMPLE SCOPE TO DEPLOY HIS SEEMINGLY INCONGRUOUS TALENTS FOR OUTOFBOUNDS SATIRE AND POIGNANT PORTRAYALS OF SOULS AT THE ENDS OF THEIR TETHERS IN HIS NEW NOVEL ABOUT AN ANGLICAN CLERGYMAN PLUNGED INTO THE MIDLIFE CRISIS TO END ALL MIDLIFE CRISES FRANCIS KREER HAPLESS HERO OF THE VICAR OF SORROWS NORTON 391 PAGES 23 ROTELY CONDUCTS SERVICES ON BEHALF OF A RELIGION IN WHICH HE NO LONGER BELIEVES AND COLDSHOULDERS A WELLMEANING BUT DOPEY WIFE WITH WHOM HE IS NO LONGER IN LOVE HE FINDS SOME SATISFACTION IN HIS BOOKS AND SATISFACTION OF A DEEPER KIND IN THE COMPANIONSHIP OF HIS CHESSPLAYING ADOLESCENT DAUGHTER WHOSE POOR MOTHER IS LEFT TO CONFIDE HER SORROWS TO A CACHE OF STUFFED ANIMALS PRESERVED FROM HER CHILDHOOD INTELLECTUAL HIGHTONED AND MILDLY EFFEMINATE FRANCIS IS AN UNRECONSTRUCTED MOTHER'S BOY WHO STILL WORSHIPS HIS DOLLFACED OCTOGENARIAN MUMMY SHE IN TURN STILL THINKS OF HER 47YEAROLD SON AS LITTLE BOY MUMMY DIES UNEXPECTEDLY AFTER A SUDDEN FIT OF PIQUE IN WHICH SHE ALTERS HER WILL TO LEAVE HALF OF HER SON'S INHERITANCE TO AN OLD WARTIME FLAME WITH THE DISCOVERY OF MUMMY'S BETRAYAL AND HER HERETOFORE UNSUSPECTED WARTIME FLING FRANCIS'S WORLD BEGINS TO FALL APART AT THIS CRITICAL POINT THE VICAR'S VILLAGE OF DITCHAM IS INVADED BY A RAGTAG CARAVAN KNOWN AS THE TRAVELLERS MOST OF THE LOCALS TAKE A DIM VIEW OF THESE ITINERANT INTERLOPERS THOUGH FRANCIS IS STRUCK BY THE ETHEREAL LOVELINESS OF ONE YOUNG WOMAN IN THEIR MIDST JAY DUNBAR A FORMER VIOLIN STUDENT WHO IS BEGINNING TO GROW AS DISILLUSIONED WITH HER GYPSY LIFE AS FRANCIS IS WITH HIS STAGNANT ONE THE STAGE IS SET FOR COMEDY OR TRAGEDY AS AN INCREASINGLY QUIXOTIC FRANCIS PURSUES HIS NEWFOUND LOVE AND MR WILSON PILES UP ENOUGH MISTAKEN IDENTITIES MISSED CONNECTIONS AND ODD COUPLINGS TO STOCK AN ENTIRE SEASON OF BEDROOM FARCES BUT FOR ALL ITS GENUINELY HILARIOUS MOMENTS THIS NOVEL HIS 14TH TO DATE IS ULTIMATELY A VERY BLEAK VISION OF A WORLD IN WHICH THE PURSUIT OF LOVE ENGENDERS LUNACY AND NO GOOD DEED GOES UNPUNISHED IN HIS TRANSFORMATION FROM COMFORTABLE INSULATED CLERIC TO DISPOSSESSED DISGRACED VICAR OF SORROWS FRANCIS KREER ENDS UP LOSING NOT ONLY WORLDLY MATERIAL THINGS BUT THE INNER PEACE OF MIND HE SO ARDENTLY SOUGHT MR WILSON'S DEFT HANDLING OF THIS MATERIAL IS MARRED BY AN OCCASIONAL TOUCH OF CRUELTY THAT LENDS A DISTINCT CHILL TO THE PROCEEDINGS IT IS SOMETHING OF A RELIEF TO TURN ONE'S ATTENTION TO ANOTHER SOUL IN DISTRESS PORTRAYED WITH GREATER SYMPATHY AND OPTIMISM THE MAN WHO NARRATES MARK SALZMAN'S THIRD BOOK THE SOLOIST RANDOM HOUSE 272 PAGES 21 IS A 35YEAROLD FORMER CHILD PRODIGY WHO'S ABANDONED HIS CONCERT CAREER FOR TEACHING A SOLOIST IN MORE WAYS THAN ONE RENNE SUNDHEIMER LIVES ALONE IN LOS ANGELES WITHOUT EVEN A PET HE HAS NO CLOSE FRIENDS AND IS STILL A VIRGIN EVEN HIS BELOVED CELLO IS LESS A COMFORT TO HIM THAN A DAILY REMINDER OF THE PROBLEM THAT FORCED HIM OFF THE CONCERT STAGE 18 YEARS EARLIER MY NATURAL GIFT FOR INTONATION TURNED AGAINST ME MY EAR BEGAN TO EXAMINE EACH NOTE SO INTENSELY THAT EVEN A VARIATION OF A SINGLE CYCLE IN PITCH BOTHERED ME NOT EVEN I COULD PLAY WITH THAT KIND OF ACOUSTIC PRECISION WHICH MADE IT NEARLY IMPOSSIBLE FOR ME TO CONCENTRATE ON THE MELODIC LINE AND AS A RESULT MY PLAYING BECAME FRAGMENTED AND WEAK CONCERTS BECAME INTERMINABLE HUMILIATIONS INSTEAD OF EUPHORIC EXPERIENCES HE EXPLAINS WITH AN UNABASHED SELFABSORPTION THAT MANAGES TO BE ODDLY MOVING BROUGHT UP BY OVERANXIOUS GERMAN JEWISH REFUGEE PARENTS TO CHANNEL HIS ENERGIES INTO NOTHING BUT HIS MUSIC RENNE FEELS UNEQUIPPED TO DEAL WITH MANY ASPECTS OF ORDINARY LIFE THE FAME HE WOULD EVENTUALLY ENJOY AS A WORLDCLASS CELLIST HIS MOTHER ALWAYS ASSURED HIM WOULD AUTOMATICALLY BRING HIM ALL THE FRIENDSHIPS AND ROMANCES HE'D MISSED OUT ON WHILE GROWING UP THINGS HAVE NOT WORKED OUT AS PLANNED BUT RENNE'S LIFE IS ABOUT TO BE CHANGED BY TWO TOTALLY UNPLANNED AND UNRELATED EVENTS A SUMMONS TO JURY DUTY AND A REQUEST TO LISTEN TO AN UNKNOWN 6YEAROLD KOREAN BOY TINY TONGUETIED KYUNGHEE KIM WHO CAN BARELY LIFT HIS KIDDIE CELLO PLAYS LIKE AN ANGEL WITH A MUSICALITY UNCOMMON AMONG CHILD PRODIGIES AFTER SOME INITIAL SKEPTICISM RENNE IS SOON BUSY DEVISING INGENIOUS WAYS TO DRAW OUT HIS SHY PUPIL ENGAGE HIS IMAGINATION AND BUILD HIS TECHNIQUE SERVING AT THE SAME TIME ON A JURY TRYING A MURDER CASE RENNE FINDS HIMSELF ATTRACTED TO A SEXY FEMALE JUROR WHO DOESN'T KNOW MOZART FROM MOTOWN AND HE FEELS INVOLVEMENT OF A VERY DIFFERENT KIND IN THE CASE ITSELF AS HE TRIES TO ASSESS THE EXTENT TO WHICH AN UNBALANCED YOUNG MAN WHO BEAT HIS ZEN TEACHER TO DEATH SHOULD BE HELD RESPONSIBLE FOR HIS ACTIONS MR SALZMAN PROVIDES ADMIRABLY CLEAR EXPOSITIONS OF EVERYTHING FROM COURT PROCEDURE TO MUSIC TRAINING IN AN UNASSUMING MANNER BUT PERHAPS THE MOST IMPRESSIVE ASPECT OF THIS NOVEL IS THE SUBTLETY OF THE WAYS IN WHICH RENNE IS CHANGED BY HIS EXPERIENCES GOING BEYOND WHAT MIGHT MERELY HAVE BEEN THE STEREOTYPICAL AND THE MELODRAMATIC MR SALZMAN HAS CREATED AN ENGAGING FRESHLY OBSERVED AND UTTERLY CONVINCING PORTRAIT OF A YOUNG MAN IN TRANSITION 9402010089 940201 INTERNATIONAL RESTRUCTURING OF EURO DISNEY HITS BOND SNAG FRENCH DEBTHOLDERS POSE OBSTACLE AND DEMAND RESCUE BY WALT DISNEY BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS TALKS AIMED AT SALVAGING THE TROUBLED EURO DISNEY SCA THEME PARK HAVE RUN INTO AN UNEXPECTED OBSTACLE EVEN BEFORE THEY START ANGRY FRENCH BONDHOLDERS WHO ARE DEMANDING REPRESENTATION AT THE NEGOTIATIONS AND WANT WALT DISNEY CO TO COME TO THEIR RESCUE SUCH DEMANDS WOULD NORMALLY GET SHORT SHRIFT IN FRANCE WHERE SMALL INVESTORS RARELY HAVE ENOUGH CLOUT TO DEFEND THEIR INTERESTS BUT BECAUSE OF AN ODD DISCREPANCY IN THE TERMS ATTACHED TO AN ISSUE OF EURO DISNEY BONDS BANKERS FAMILIAR WITH THE SITUATION SAY THE HOLDERS IN THIS CASE POSE A PARTICULARLY COMPLEX LEGAL PROBLEM THAT COULD HAMPER THE RESTRUCTURING TALKS AT THE SAME TIME CREDITRATING AGENCIES AND ANALYSTS HAVE BEEN EXAMINING THE EXPOSURE OF KEY BANKS INVOLVED IN EURO DISNEY LENDING WHILE THE RISKS GENERALLY SEEM WELL SPREAD THEY ARE CONCLUDING THAT SOME FRENCH BANKS IN PARTICULAR RECENTLY PRIVATIZED BANQUE NATIONALE DE PARIS COULD FACE EMBARRASSING LOSSES THE DISCREPANCY CONCERNS FOUR BILLION FRENCH FRANCS 6764 MILLION OF CONVERTIBLE BONDS ISSUED IN JULY 1991 THE ENGLISHLANGUAGE TEXT OF THE PROSPECTUS THAT WAS USED FOR ITS LAUNCH IN THE LONDON MARKET STIPULATES THAT THE TERMS CAN ONLY BE CHANGED IF THERE IS UNANIMITY OF THE HOLDERS THE FRENCH TEXT HOWEVER SAYS THAT ONLY A MAJORITY OF HOLDERS IS NEEDED THE DIFFERENCE REFLECTS THE LACK OF CONSISTENCY IN EUROPEAN ISSUING PRACTICES BUT UNLESS THE BONDHOLDERS CAN SOMEHOW BE LEFT OUT OF THE RESTRUCTURING ALTOGETHER WHICH SEEMS UNLIKELY THE DISSIMILAR LANGUAGE COULD BECOME A LEGAL QUAGMIRE SOME FEAR DEALING WITH THE BONDHOLDERS COULD BE VERY PROBLEMATIC ADMITS AN OFFICIAL AT ONE BIG CREDITOR BANK INVOLVED IN THE NEGOTIATIONS HE ADDS THAT THE RESTRUCTURING ITSELF PROMISES TO BE ANYTHING BUT EASY NOT LEAST BECAUSE OF THE HIGH STAKES INVOLVED AND THE RELATIVELY SHORT TIME IN WHICH THE PROBLEMS HAVE TO BE RESOLVED EURO DISNEY'S 60 CREDITOR BANKS ARE SCHEDULED TO RECEIVE TOMORROW A PRELIMINARY REPORT FROM AUDITORS KPMG PEAT MARWICK ASSESSING BOTH THE RESORT'S FINANCIAL SITUATION AND ITS REVAMPED BUSINESS STRATEGY FORMAL NEGOTIATIONS WITH BOTH EURO DISNEY AND WALT DISNEY ARE EXPECTED TO START A FEW DAYS LATER ONCE THE BANKS HAVE AGREED ON THEIR TACTICS EURO DISNEY'S FUTURE VIABILITY DEPENDS ON AN AGREEMENT BETWEEN THE PARTIES TO REDUCE ITS 21 BILLION FRANCS IN DEBT PROBABLY BY AT LEAST 50 THROUGH AN EXPECTED MIXTURE OF DEBT WRITEDOWNS AND AN INJECTION OF FRESH CAPITAL AT THE MOMENT THE PARK'S REVENUE IS MORE THAN EATEN UP BY HIGH INTEREST CHARGES WHICH AMOUNTED TO ABOUT 17 BILLION FRANCS IN THE LAST FISCAL YEAR ENDED SEPT 30 WALT DISNEY WHICH OWNS 49 OF EURO DISNEY SCA THE EUROPEAN OPERATING COMPANY FOR THE PARK HAS SAID IT IS ONLY PREPARED TO CONTINUE FUNDING THE RESORT TO THE END OF MARCH THE BONDHOLDERS ARE REPRESENTED BY A FRENCH ASSOCIATION HEADED BY COLETTE NEUVILLE AN ACTIVIST WHO OFTEN CAMPAIGNS FOR THE RIGHTS OF MINORITY HOLDERS A LEGAL REPORT FOR THE BONDHOLDERS ISSUED YESTERDAY PRESSED FOR THEM TO BE REPRESENTED AT THE TALKS AND GEORGES BERLIOZ THE LAWYER WHO DRAFTED THE REPORT THREATENED LEGAL ACTION IF THEY WERE EXCLUDED IF WE ARE NOT INVITED WE WILL LITIGATE OUR WAY IN MR BERLIOZ SAID IN A TELEPHONE INTERVIEW ON ONE CRUCIAL POINT MR BERLIOZ'S REPORT ECHOED DEMANDS MADE BY THE CREDITOR BANKS THEMSELVES NAMELY THAT WALT DISNEY SHOULD CARRY MUCH OF THE BURDEN FOR AN EVENTUAL RESTRUCTURING UNDER EURO DISNEY'S COMPLEX FINANCIAL STRUCTURE INVOLVING A WEB OF SHAREHOLDINGS AND CROSSHOLDINGS WALT DISNEY LARGELY LIMITED ITS DIRECT FINANCIAL RESPONSIBILITY FOR THE PROJECT FOR EXAMPLE MOST OF THE RESORT'S DEBT ISN'T OWED DIRECTLY BY EURO DISNEY TO THE CREDITOR BANKS BUT VIA A NUMBER OF FINANCE COMPANIES THAT OWN THE PARK AND ITS SIX HOTELS AND WITH WHICH EURO DISNEY HAS NO DIRECT SHAREHOLDER LINKS WHILE WALT DISNEY THUS HAS ONLY LIMITED LEGALLY ENFORCEABLE TIES TO THE RESORT THE BONDHOLDERS AND THE BANKS INSIST THAT IT NONETHELESS REMAINS RESPONSIBLE CREDITOR BANKERS IN THE WORDS OF ONE SENIOR OFFICIAL WANT AN ASYMMETRICAL SHARING OF THE PAIN WITH WALT DISNEY BEARING THE BRUNT THE US COMPANY HAS AVOIDED MAKING PUBLIC COMMENTS ON THE RESTRUCTURING TALKS AND A SPOKESMAN WASN'T AVAILABLE TO COMMENT ON SPECIFIC ISSUES RELATING EITHER TO THE BONDHOLDERS OR TO A POSSIBLE SHARING OF THE RESTRUCTURING BURDEN GIVEN THE COMPLEXITIES OF THE TALKS BANKING ANALYSTS AND CREDITRATING AGENCIES HAVE BEEN TAKING A CLOSE LOOK AT THE RISKS TO CREDITORS ESPECIALLY IN THE EVENT THAT TALKS FAIL AND EURO DISNEY CLOSES THE STILL UNLIKELY WORSTCASE SCENARIO FRENCH BANKS ACCOUNT FOR ABOUT 50 OF EURO DISNEY'S 14 BILLION FRANCS IN BANK DEBT BY FAR THE BIGGEST CREDITOR IS FRANCE'S STATEOWNED CAISSE DES DEPOTS & CONSIGNATIONS WHICH HAS OUTSTANDING LOANS IN EXCESS OF 4 BILLION FRANCS THE ORGANIZATION HOWEVER IS THE GOVERNMENT'S FINANCING ARM AND THUS ISN'T USUALLY SCRUTINIZED LIKE OTHER COMMERCIAL BANKS OF THE OTHER LENDERS RATING AGENCIES IDENTIFY FOUR MAIN CREDITORS BANQUE NATIONALE DE PARIS CREDIT AGRICOLE BANQUE INDOSUEZ AND THE BANQUES POPULAIRES GROUP ALTHOUGH THE BANKS AREN'T DIVULGING THE EXTENT OF THEIR LOANS ANALYSTS SAY THEIR EXPOSURE RANGES BETWEEN ABOUT 500 MILLION FRANCS AND ONE BILLION FRANCS EACH BEHIND THIS GROUP WITH A SUBSTANTIALLY SMALLER EXPOSURE COME SEVERAL JAPANESE BRITISH AND GERMAN BANKS AND AT LEAST TWO US BANKS CITICORP'S CITIBANK UNIT AND JP MORGAN & CO ALSO HAVE OUTSTANDING LOANS THE BANKS ALL DECLINED OFFICIAL COMMENT OBVIOUSLY WE ARE CONCERNED SAYS SAMUEL S THEODORE VICE PRESIDENT OF RATING AGENCY MOODY'S FRANCE SA BUT FOR MOST OF THE BANKS WE DON'T FEEL THAT THIS EXPOSURE ITSELF IS GOING TO BE A RATING EVENT ADDS SCOTT BUGIE AN ANALYST AT STANDARD AND POOR'S CORP IN PARIS THE RISK IS WELL SPREAD IT'S NOT GOING TO BRING ANY BANK DOWN NONETHELESS THE RISK OF SUBSTANTIAL LOSSES FOR THE MAIN FRENCH BANKS INVOLVED IS CAUSING SOME CONCERN IN PARTICULAR ANALYSTS SAY A POSSIBLE FAILURE OF EURO DISNEY WOULD BE SEVERELY EMBARRASSING FOR BANQUE NATIONALE DE PARIS WHICH WAS PRIVATIZED BY THE FRENCH GOVERNMENT LATE LAST YEAR JUST THIS MONTH MOODY'S PLACED BNP UNDER REVIEW FOR A POSSIBLE DOWNGRADING FOR REASONS NOT CONNECTED TO EURO DISNEY ANALYSTS BELIEVE THE BANK HASN'T YET MADE ANY PROVISIONS FOR POSSIBLE EURO DISNEY LOSSES BNP OFFICIALS SAY PRIVATELY THAT CHAIRMAN MICHEL PEBEREAU IS CONCERNED NOT TO ALLOW EURO DISNEY TO DRAG DOWN EARNINGS SO SOON AFTER PRIVATIZATION 9402010087 940201 POLITICS & POLICY SEC ASKED TO SEEK DATA ON FUND USED BY HILLARY CLINTON BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THREE HOUSE REPUBLICANS ASKED THE SECURITIES AND EXCHANGE COMMISSION FOR INFORMATION ABOUT HILLARY RODHAM CLINTON'S HOLDINGS IN AN INVESTMENT FUND THAT SOLD SHORT SEVERAL HEALTHCARE STOCKS EARLY LAST YEAR MRS CLINTON'S HOLDINGS IN VALUEPARTNERS I BECAME PUBLIC KNOWLEDGE IN MAY 1993 WHEN SHE AND PRESIDENT CLINTON FILED FEDERAL FORMS DISCLOSING A VARIETY OF INVESTMENTS MRS CLINTON HAS BEEN A LIMITED PARTNER SINCE 1986 IN VALUEPARTNERS I A HEDGE FUND MANAGED BY SMITH CAPITAL MANAGEMENT OF LITTLE ROCK ARK HEDGE FUNDS ARE AMONG THE MOST AGGRESSIVE INVESTMENT POOLS BECAUSE THEY CAN BUY STOCKS WITH BORROWED MONEY AND CAN SELL STOCKS SHORT THAT IS BORROW SHARES AND SELL THEM AT CURRENT PRICES IN ANTICIPATION OF REPLACING THEM AT LOWER PRICES HEALTHCARE STOCKS WERE AMONG THE STOCKS SOLD SHORT BY VALUEPARTNERS I LAST YEAR WHEN MANY HEALTHCARE STOCKS WERE FALLING IN VALUE BECAUSE OF THE UNCERTAINTY ABOUT THE IMPENDING RECOMMENDATIONS OF THE PRESIDENTIAL TASK FORCE ON HEALTHCARE REFORM HEADED BY MRS CLINTON IN A LETTER TO SEC CHAIRMAN ARTHUR LEVITT REPS BOB LANCASTER OF LOUISIANA CHRISTOPHER COX OF CALIFORNIA AND GEORGE GEKAS OF PENNSYLVANIA ASKED FOR INFORMATION ABOUT SMITH CAPITAL MANAGEMENT AND TRADING IN THE HEDGE FUND IN THE TIME BETWEEN PRESIDENT CLINTON'S ELECTION AND THE TRANSFER OF THE FUND AND OTHER CLINTON ASSETS TO A BLIND TRUST IN JULY BOTH THE PRESIDENT AND MRS CLINTON WOULD CERTAINLY BE AWARE OF THE IMPACT ON THE MARKET OF THEIR STATEMENTS ABOUT THE ADMINISTRATION'S HEALTH CARE PROPOSALS THE REPUBLICAN REPRESENTATIVES WROTE TO MR LEVITT LAST WEEK THE ABILITY OF THE PRESIDENT AND MRS CLINTON TO AFFECT PRICES IN THE SECURITIES MARKETS IS UNIQUE THE QUESTIONS ALREADY RAISED PUBLICLY CONCERNING THEIR INVESTMENTS PARTICULARLY SHORT SALES MUST BE ADDRESSED SEC OFFICIALS SAID THEY ARE REVIEWING THE LETTER BUT WOULDN'T COMMENT FURTHER SEPARATELY SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE AGAIN REJECTED REPUBLICAN REQUESTS FOR A HEARING ON THE CLINTONS' ARKANSAS REALESTATE INVESTMENT THE MICHIGAN DEMOCRAT SAID HE WOULDN'T CONSIDER COMMITTEE ACTIVITY UNTIL SPECIAL COUNSEL ROBERT FISKE JR HAS COMPLETED HIS INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN AND WHITEWATER DEVELOPMENT CORP SEN ALFONSE D'AMATO OF NEW YORK AND SEVEN OF HIS FELLOW REPUBLICANS ON THE BANKING COMMITTEE HAVE ASKED FOR HEARINGS ON THE CLINTONS' INVESTMENT IN WHITEWATER WITH THE FORMER CHAIRMAN OF MADISON GUARANTY 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 9402010086 940201 LETTERS TO THE EDITOR THE ODD TWIST IN LATVIAN HISTORY I APPRECIATE THE JAN 6 PAGEONE ARTICLE ON REVERSE IMMIGRATION OF LATVIANS YOUR DELINEATIONS OF EXPERIENCES BY RETURNING EXILES HAVE SOME CREDIBILITY SINCE MY VISITS TO LATVIA EASILY LED TO SIMILAR CONCLUSIONS BUT YOU WHITEWASH THE SOVIET RUSSIAN ATROCITIES OF 1940 IN LATVIA BY DISMISSING THE RUSSIAN OCCUPATION ALTOGETHER IN 1940 LATVIA WAS INVADED BY THE SOVIET UNION NOT THE NAZIS THE NAZIS FOLLOWED IN 1941 WHEN THE CONSEQUENCES OF THE SOVIET OCCUPATION CAME TO LIGHT SOME 35000 LATVIANS HAD BEEN DEPORTED TO UNKNOWN DESTINATIONS EAST OF THE URALS AN UNKNOWN NUMBER OF TORTURED AND MURDERED LATVIANS TURNED UP IN MASS GRAVES AND DUNGEONS OF CHEKA PRISONS THIS WAS THE PRINCIPAL REASON FOR THE FLIGHT TO THE WEST THE ODD TWIST IN LATVIAN HISTORY IS THAT THE NAZI INVASION OF RUSSIA FOR REASONS OTHER THAN SAVING THE LATVIANS FROM EXTINCTION INTERRUPTED THE SOVIET COMMITMENT TO GENOCIDE HAD THE NAZI INVASION OF RUSSIA NOT OCCURRED OR OCCURRED A FEW WEEKS LATER NEITHER THE REVERSE IMMIGRANTS NOR I WOULD EXIST FOR THEIR PARENTS AND MINE WOULD HAVE ENDED THEIR LIVES IN THE GULAGS 9402010085 940201 LETTERS TO THE EDITOR MORE THAN WE WANTED TO SEE OF SALOME' IN REGARD TO LEAN TIMES AT THE SAN FRANCISCO OPERA BY DAVID LITTLEJOHN LEISURE & ARTS JAN 5 LEAN TIMES THERE ARE RICHLY DESERVED AND FOR MANY MORE REASONS THAN LISTED IN MR LITTLEJOHN'S ARTICLE THE FINAL INSULT TO ME WAS MARIA EWING'S SLEAZY STRIPTEASE IN SALOME SMALL WONDER THE METROPOLITAN OPERA RELEASED THIS MUST DO IT MY WAY SINGER TO LA OPERA THE DEC 25 ISSUE OF OPERA NEWS REFERS TO HER SHEDDING THE FINAL VEIL WHICH IS THE GSTRING IN THE DANCE OF THE SEVEN VEILS WE ARE TOLD TOTAL NUDITY IS NOT VULGAR IN AN OPERA HOUSE THAT'S A MATTER OF OPINION AFTER VIEWING MS EWING SPREADEAGLED IN THE GRAND FINALE WITH ALL HER CELLULITE GLORY EXPOSED I VOWED NEVER AGAIN TO SET FOOT IN THE WAR MEMORIAL OPERA HOUSE TO JOURNEY NORTH LAST APRIL PAY IN EXCESS OF 100 FOR A TICKET PUT UP WITH A DOWNTOWN HOTEL IN A CITY FULL OF WEIRDLY BEHAVING STREET PEOPLE IS MORE THAN WORTH IT WHEN PRODUCTIONS ARE PERFORMED WITH FLAIR TASTE AND TALENT HOWEVER WHEN FLAMBOYANT SENSATIONALIZED VERSIONS ARE OFFENSIVELY OFFERED THAT'S FINIS PS I'VE BEEN AN OPERA LOVER SINCE LILY PONS JAN PEERCE ZINKA MILANOV JUSSI BJORLING DOROTHY KIRSTEN ETC A TRUE SINGER COULD BE FAT AND PLANT HERSELF STAGE CENTER AND STILL HOLD THE AUDIENCE 9402010084 940201 INDUSTRY FOCUS ETHNIC CHINESE COMPANIES FIND ROOM AT SOME US INNS FIRMS' CAUTION CONTRASTS WITH ILLFATED JAPANESE HOTELBUYING BINGE OF '80S BY WALL STREET JOURNAL REPORTERS SUSAN CAREY IN CHICAGO AND MIRIAM JORDAN IN HONG KONG ETHNIC CHINESE BUYERS FROM OVERSEAS ARE QUIETLY CHECKING INTO THE US HOTEL INDUSTRY AS JAPANESE INVESTORS CHECK OUT OVER THE PAST SEVERAL YEARS THESE CHINESE BUYERS MOSTLY FROM HONG KONG TAIWAN AND SOUTHEAST ASIA HAVE TAKEN ADVANTAGE OF A SLUMP IN THE US MARKET TO SNAP UP HOTELS AT PRICES FAR BELOW REPLACEMENT COSTS IN SOME CASES THEY ARE BUYING HOTELS FROM JAPANESE INVESTORS WHOSE FINANCIAL TROUBLES HAVE FORCED THEM TO RETREAT FROM THE MARKET THE CHINESE BUYERS HAVE A DIFFERENT APPROACH FROM THE JAPANESE WHO WENT ON A US HOTELACQUISITION BINGE IN THE 1980S THE CHINESE ARE MORE CAUTIOUS SAYS KEVIN MAHONEY OF LODGING CONSULTANT KENNETH LEVENTHAL & CO OF LOS ANGELES THEY'RE BUYING EXISTING MIDMARKET HOTELS WITH PROVEN CASH FLOW AND THEY'RE PAYING CASH BY CONTRAST THE JAPANESE SPREE WAS MARKED BY INFLATED PRICES LOTS OF DEBT AND A HANDSOFF APPROACH TO MANAGEMENT WITH THE SLUMP OF THE PROPERTY MARKET MANY OF THE JAPANESE ACQUISITIONS IN THE US TURNED INTO FINANCIAL BLACK HOLES FIVE YEARS AGO I WAS SEARCHING TOKYO AND OSAKA FOR INVESTORS FOR US HOTELS SAYS TOM TIMMONS AN INVESTMENT ADVISER FOR THE PROPERTYCONSULTING FIRM VIGERS HONG KONG LTD NOW WE ARE LOOKING FOR SELLERS IN JAPAN AND BUYERS IN SOUTHEAST ASIA MANY OF THE NEW BUYERS AMASSED FORTUNES IN OTHER INDUSTRIES BACK HOME IN ASIA OVER THE PAST DECADE NOW THEY ARE SEEKING TO HEDGE THEIR BETS SOME ARE JUST BEGINNING TO DIVERSIFY INTO OFFSHORE INVESTMENTS SAYS MR TIMMONS THE US IS POLITICALLY STABLE RELATIVE TO OTHER MARKETS AND US REAL ESTATE HAS BEEN IN THE DUMPS FOR THE PAST THREE YEARS WHILE THE BARGAINS LAST ETHNIC CHINESE ARE BUYING EVERYTHING FROM BUDGET MOTELS IN TEXAS TO ALLSUITE HOTELS IN CHICAGO TO HISTORIC PROPERTIES IN NASHVILLE TENN IN THE PAST TWO YEARS ALONE THEY HAVE SPENT AT LEAST 15 BILLION ON US HOTELS IN TRANSACTIONS FOR WHICH THE PRICES CAN BE DETERMINED THE REAL FIGURE IS PROBABLY FAR HIGHER THAN THAT MANY SALES AREN'T REGISTERED AS FOREIGN INVESTMENTS OR ARE HANDLED THROUGH INTERMEDIARIES ETHNIC CHINESE HAVE BEEN BIGGER BUYERS RECENTLY THAN EVEN EUROPEANS WHO LONG HAVE BEEN ACTIVE IN THE US SAYS KEN WILSON A BOSTONBASED SENIOR VICE PRESIDENT OF LANDAUER HOSPITALITY ADVISORY GROUP THE NEW ASIAN BUYERS ARE FINDING BARGAINS THAT WOULD HAVE BEEN UNTHINKABLE JUST FIVE OR SIX YEARS AGO TODAY REFLECTING OVERBUILDING THE US SAVINGSANDLOAN CRISIS AND A CUTBACK IN TRAVEL MANY HOTELS ARE ON THE BLOCK AT 30 TO 40 OF THEIR REPLACEMENT COST CENTRAL PLAZA HOTEL GROUP A PUBLICLY TRADED BANGKOK COMPANY CONTROLLED BY A THAICHINESE FAMILY LAST SEPTEMBER PURCHASED A NEW 178ROOM HOTEL AT LOS ANGELES INTERNATIONAL AIRPORT FROM THE JAPANESE OWNERDEVELOPER FOR 10 MILLION IN CASH THE JAPANESE COMPANY MARUKO INC A SUBSIDIARY OF THE CONSTRUCTION CONCERN KAJIMA CORP HAD SUNK 16 MILLION INTO THE HOTEL BUT NEVER OPENED IT THE SAME MONTH MUI GROUP A MALAYSIAN CONGLOMERATE HEADED BY AN ETHNIC CHINESE BOUGHT FOR 18 MILLION THE 300ROOM MARRIOTT HOTEL IN HOUSTON ALONG WITH AN ADJACENT OFFICE BUILDING AND PARKING GARAGE MUI SAYS THE REPLACEMENT VALUE FOR THE PROPERTIES IS 50 MILLION EVEN COMPANIES FROM MAINLAND CHINA ARE LOOKING AROUND YUKUO TAKENAKA PRESIDENT OF LOS ANGELESBASED TAKENAKA & CO SAYS HIS INVESTMENT COMPANY'S MAINLAND CLIENTS ARE SEEKING INDIVIDUAL US HOTELS TO PURCHASE AT LEAST ONE MAINLAND CHINESE COMPANY ALREADY HAS TAKEN THE LEAP IN 1992 AIR CHINA THE BEIJINGBASED AIRLINE PURCHASED THE 150ROOM RAMADA INN AT SAN FRANCISCO INTERNATIONAL AIRPORT BUT THE BULK OF THE CHINESE BUYERS CONTINUE TO COME FROM HONG KONG AND TAIWAN SAM CHANG A USBASED TAIWANESE WHO REPRESENTS INVESTORS FROM HONG KONG AND TAIWAN IS AN EXAMPLE MR CHANG AND HIS PARTNERS SINCE 1991 HAVE BOUGHT 13 HOTELS IN THE NORTHEASTERN US THEIR INVESTMENT VEHICLE ORIENT HOTELS GROUP OF STAMFORD CONN SPENT 100 MILLION ON THE ACQUISITIONS HALF IN CASH BUT IN MANY CASES NOT A LOT OF CASH MR CHANG SAYS THEY PAID 43 MILLION TO BUY THE 380ROOM HOLIDAY INN CROWNE PLAZA IN STAMFORD A HOTEL THAT WOULD COST ABOUT 30 MILLION TO BUILD TODAY THE CHENG FAMILY OF HONG KONG WHOSE PUBLICLY TRADED NEW WORLD DEVELOPMENT CO ALREADY OWNS RENAISSANCE HOTELS & RESORTS LAST SUMMER PURCHASED STOUFFER HOTELS & RESORTS FROM NESTLE SA THE 38UNIT STOUFFER CHAIN WHICH INCLUDES A BIG CHUNK OF REAL ESTATE WENT FOR MORE THAN 1 BILLION ACCORDING TO A SOURCE CLOSE TO THE CHENGS ANOTHER BIG PLAYER FROM HONG KONG WHARF HOLDINGS LTD WHICH ALREADY OWNED THE OMNI HOTELS CHAIN IN THE US HAS GROWN THE PAST TWO YEARS THROUGH PURCHASES OF POSH HOTELS IN BOSTON HOUSTON DALLAS NEW YORK AND CHICAGO OVERSEAS CHINESE ARE EXPECTED TO CONTINUE SHOPPING FOR AT LEAST ANOTHER YEAR OR MORE BUT NOBODY EXPECTS THE CHINESE TO GET CAUGHT UP IN BIDDING FEVER AND OVERPAY WHILE THE US HOTEL BUSINESS REMAINS WEAK THE FUNDAMENTALS ARE LOOKING UP FEWER THAN 200 NEW HOTELS STARTED CONSTRUCTION LAST YEAR COMPARED WITH 1600 IN 1986 MANAGEMENT CONTRACTS HAVE BECOME MORE ADVANTAGEOUS TO HOTEL OWNERS ROOM RATES AND OCCUPANCY LEVELS ARE CREEPING BACK UP AND BJORN HANSON HEAD OF THE HOSPITALITY PRACTICE AT COOPERS & LYBRAND PREDICTS THAT THE NEXT COUPLE OF YEARS WILL BE VERY GOOD FOR THE INDUSTRY BUT FOR NOW PURCHASE PRICES REMAIN LOW AND PROFITS ARE OFTEN ILLUSORY JAMES CHOI VICE CHAIRMAN OF RENAISSANCE CONCEDES THAT THE COMPANY HASN'T YET PRODUCED PROFITS FOR NEW WORLD WHICH MADE THE ACQUISITION FOUR YEARS AGO BUT THE PAIN HAS BEEN INCURRED HE SAYS THERE WILL BE A TURNAROUND WE HAVE BEEN CONTAINING OUR LOSSES LIKEWISE WHARF ISN'T FINDING OMNI A HUGE MONEYSPINNER WHILE THE CHINESE GAIN KUDOS FOR SNIFFING OUT GOOD VALUES AND APPLYING KEEN FINANCIAL CONTROL OVER THEIR INVESTMENTS SOME OBSERVERS QUESTION THEIR EXPERIENCE IN THE US AND IN THE LODGING INDUSTRY I'M SURE THEY WILL BUY AT THE RIGHT PRICE SAYS MR TAKENAKA THE LOS ANGELES INVESTMENT BANKER BUT WHETHER THEY BUY THE RIGHT PROPERTY IS ANOTHER QUESTION AND WHAT HAPPENS AFTER THE PURCHASE SUCH CONCERNS ARE BEING ADDRESSED THOUGH A FEW MONTHS AGO THE TAIWANESEAMERICAN HOTELMOTEL CHAMBER OF COMMERCE WAS ESTABLISHED TO HELP TAIWANESE NEW TO THE MARKET LAST APRIL SOME FORMER HILTON INTERNATIONAL EXECUTIVES FORMED A TAIPEIBASED HOTELMANAGEMENT COMPANY TO WORK WITH ETHNIC CHINESE BUYING HOTELS AND MANY ASIAN INVESTORS SIMPLY BUY LOCAL TALENT AND FORM THEIR OWN MANAGEMENT COMPANIES MR CHANG SAYS I'M THE ONLY ORIENTAL ON THE EXECUTIVE COMMITTEE OF HIS ORIENT HOTELS GROUP WHICH EXPECTS TO TURN A PROFIT THIS YEAR HIS GROUP IS CONTINUING TO SHOP FOR MORE PROPERTIES MR CHANG SAYS HE TELLS BROKERS I DON'T WANT TO BUY ANY MORE HOTELS BUT I DON'T MIND STEALING SOME 9402010083 940201 BUSINESS BRIEF XEROX REPORTS DEFICIT OF 577 MILLION FOR 4TH PERIOD OPERATING PROFIT ROSE NEW YORK XEROX CORP POSTED A FOURTHQUARTER LOSS OF 577 MILLION AFTER TAKING A BIG RESTRUCTURING CHARGE BUT OPERATING EARNINGS ROSE MILDLY DESPITE A SLIGHT DECLINE IN REVENUE XEROX HAD RECENTLY ANNOUNCED IT WOULD TAKE AN AFTERTAX CHARGE OF 700 MILLION TO CUT 10000 JOBS AND CLOSE SOME SITES YESTERDAY THE COMPANY SAID THE RESTRUCTURING WOULD RESULT IN PRETAX SAVINGS OF 350 MILLION THIS YEAR AND 700 MILLION IN 1995 IN THE FOURTH QUARTER XEROX'S NET LOSS OF 577 MILLION OR 563 A SHARE COMPARED WITH A WIDER LOSS OF 736 MILLION OR 780 A SHARE A YEAR EARLIER YEARAGO RESULTS REFLECTED A NET LOSS OF 752 MILLION ON INSURANCE OPERATIONS INCLUDING AFTERTAX CHARGES OF 688 MILLION TO RESTRUCTURE AND EXIT MOST OF THE INSURANCE BUSINESS REVENUE IN THE MOST RECENT QUARTER FELL 11 TO 418 BILLION FROM 423 BILLION WHILE OPERATING PROFIT BEFORE EXTRAORDINARY ITEMS ROSE ALMOST 93 TO 236 MILLION FROM 216 MILLION XEROX SAID FOURTHQUARTER REVENUE ROSE 5 EXCLUDING THE EFFECTS OF FOREIGN CURRENCY TRANSLATION WALL STREET APPEARED TO TAKE KINDLY TO XEROX'S PROFIT OUTLOOK AS XEROX SHARES ROSE ALMOST 6 TO CLOSE AT 98125 UP 550 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TRADING VOLUME WAS HEAVY AT ALMOST 13 MILLION SHARES THAT FAVORABLE RESPONSE IS IN PART BECAUSE OF THE COMPANY'S AGGRESSIVE PLANS TO CONTINUE CUTTING THE WORK FORCE AND EXPENSES EVEN AS ITS OPERATING RESULTS POST RESPECTABLE GROWTH THE COMPANY SAID IT REDUCED THE WORLDWIDE WORK FORCE IN ITS MAJOR BUSINESS LINES BY 2300 IN 1993 INCLUDING 500 IN THE FOURTH QUARTER WALL STREET ALSO APPARENTLY APPLAUDS XEROX'S CONTINUING MOVES TO GET OUT OF THE FINANCIAL SERVICES BUSINESS INTO WHICH THE COMPANY HAD STAGED A COSTLY DIVERSIFICATION THROUGH MUCH OF THE PREVIOUS DECADE 9402010081 940201 TO GET THE NATURE MUSEUM LOOK ADD DRIED PLANTS ROCKS AND DIRT BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IRA ROUSSO MAKES HIS LIVING RENTING OUT STIFFS FOR 65 HIS SCHOEPFER STUDIOS IN MIDTOWN MANHATTAN WILL RENT YOU A STUFFED PORCUPINE FOR THREE DAYS A MOUNTED POLAR BEAR WITH A HOTTEMPERED EXPRESSION GOES FOR 400 AND A BROWN BEAR FOR 375 MR ROUSSO HAS MORE THAN 1500 ANIMALS TO RENT HIS MAIN CUSTOMERS ARE PHOTOGRAPHERS ARTISTS AND RETAILERS BUT HIS SHOP IS OPEN TO ANY PARTY PLANNER WHO CAN AFFORD THE DEPOSIT WHICH GOES AS HIGH AS 10000 FOR A LEAPING LION HE'S ALSO WILLING TO SELL SOME MORE COMMON SPECIES STUFFED CHICKENS FOR EXAMPLE MR ROUSSO BOUGHT THE TAXIDERMIC ZOO A YEAR AGO FROM A COLLECTOR WHOSE GRANDFATHER STARTED IT IN 1907 HE HAD LOST HIS JOB AS A PURCHASING AGENT AND WANTED TO RUN HIS OWN BUSINESS MR ROUSSO CLAIMS IT'S THE VARIETY OF STIFFS FROM FEROCIOUS TIGERS AND ALLIGATORS TO MOUNTED FISH AND CUTE KANGAROOS THAT MAKES HIS COLLECTION STAND OUT IF YOU WANT A BEAR FINE YOU CAN FIND A BEAR BUT AN ELEPHANT'S HEAD BIRDS OF PREY A LION OR SIBERIAN TIGER YOU WON'T FIND HE SAYS IF SOMEONE COMES IN HERE AND ASKS FOR A ROSEBREASTED GROSBEAK THEY EITHER GET IT FROM ME OR DON'T GET IT ANYWHERE TO DATE HE SAYS THE BUSINESS HAS HAD ABOUT 200000 IN SALES MR ROUSSO IS ESPECIALLY PROUD WHEN ONE OF HIS MENAGERIE MAKES THE BIG TIME THE SHARP EYED CAN SEE ONE OF MR ROUSSO'S STUFFED BEAVERS IN THE MOVIE NAKED GUN 2 1/2 VANITY FAIR HE SAYS RENTED AN ARRAY OF CATS BIRDS AND OTHER ANIMALS FOR A PHOTO SHOOT WITH CINDY CRAWFORD AND HE ADDS THE SOAP OPERA ALL MY CHILDREN USES HIS ANIMALS IN HUNTING LODGE SCENES WHAT EXACTLY MAKES A GOOD STUFFED ANIMAL VERY CLEAN MOUNTED EXAMPLES IS WHAT HOLMES EASLEY SET DECORATOR ON PROCTER & GAMBLE PRODUCTIONS' AS THE WORLD TURNS LOOKS FOR MR EASLEY WHO GETS PROPS FROM OTHER VENDORS SAYS HE TRIES TO AVOID DUSTY RATTY OLD ANIMALS THAT LOOK VERY MOTHEATEN ALTHOUGH MR ROUSSO SAYS HE HAS A STEADY BUSINESS SOME DEMANDS ARE SEASONAL TURKEYS ARE BIG IN NOVEMBER FOR EXAMPLE AND CROWS IN OCTOBER ONE OF HIS HOTTEST ITEMS AROUND HALLOWEEN IS THE NEW YORK CITY RAT HE HAS THREE THAT RENT FOR 60 EACH HE SAYS HE WOULD LIKE TO ADD TO HIS RAT COLLECTION BUT CAN'T FIND ENOUGH OF THEM DEAD THAT IS I'VE SEEN THEM IN THE SUBWAYS HE SAYS BUT I'M NOT GOING AROUND KILLING RATS 9402010080 940201 REVIEW & OUTLOOK EDITORIAL ASIDES PRENATAL POLITICS NO ONE COULD MISTAKE PLANNED PARENTHOOD'S STATUS AS THE NATION'S ABORTION CENTRAL BUT NEVERTHELESS A CLASSIFIED AD THAT THE GROUP PLACED IN THE ARIZONA REPUBLIC RECENTLY CAUGHT OUR EYE THE LISTING FOR A FAMILY PLANNING ASSISTANT INCLUDED AMONG OTHER QUALIFICATIONS MUST BE PROCHOICE THESE DAYS THE THREAT OF ANTIDISCRIMINATION LITIGATION MEANS YOU CAN'T TRY TO SPECIFY SPIRITUALITY OR EXCLUDE SEXUAL PRACTICES IN ADVERTISING FOR A RENTER BUT WHEN IT COMES TO ADVISING PROSPECTIVE MOTHERS AT PLANNED PARENTHOOD ONLY THE POLITICALLY CORRECT NEED APPLY 9402010079 940201 ECONOMY REPUBLICANS BLAST A GATT PROVISION THAT ALLOWS SOME GOVERNMENT SUBSIDIES BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE'S 44 REPUBLICANS BLASTED A PART OF A NEW WORLD TRADING AGREEMENT THAT ALLOWS CERTAIN GOVERNMENT SUBSIDIES GIVING THE CLINTON ADMINISTRATION ITS FIRST BIG POLITICAL TEST IN ITS EFFORT TO PUSH THE PACT THROUGH CONGRESS THE SENATE REPUBLICAN DISAPPROVAL ISN'T LIKELY TO MEAN CONGRESSIONAL DEFEAT FOR THE PACT WHICH WAS NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND IS AIMED AT LIBERALIZING WORLD TRADE BUT THE OPPOSITION DOES CREATE A POTHOLE ON WHAT WAS SUPPOSED TO BE A SMOOTH RIDE ADMINISTRATION OFFICIALS INSIST THAT CONCERNS CAN BE DEALT WITH IN IMPLEMENTING LEGISLATION THAT DETAILS HOW THE TRADE PACT WILL TAKE EFFECT THE REPUBLICANS ARE BASICALLY OPPOSED TO TERMS THAT ALLOW SUBSIDIES FOR RESEARCH AND DEVELOPMENT REGIONAL DEVELOPMENT AND ENVIRONMENTAL COMPLIANCE THE SENATORS LED BY MISSOURI SEN JOHN DANFORTH COMPLAINED THAT THE SUBSIDIES REPRESENT A MAJOR SHIFT IN US TRADE POLICY FROM ONE PROMOTING FREE MARKET COMPETITION TO ONE PROMOTING GOVERNMENT SUBSIDIES AND INDUSTRIAL POLICY THE ADMINISTRATION REACTED SOMEWHAT UNUSUALLY TO THE REPUBLICAN COMPLAINTS A SENIOR US TRADE OFFICIAL WHO BRIEFED REPORTERS ON THE CONDITION OF ANONYMITY MOCKINGLY READ PARTS OF THE LAWMAKERS' PROTEST AND NOTED THAT MR DANFORTH SHOULD BE ASKED MORE PENETRATING QUESTIONS ABOUT WHY HE IS RAISING THIS TO THIS LEVEL OF PUBLIC CONFRONTATION THE OFFICIAL WOULDN'T ELABORATE BUT WENT ON TO SUGGEST THE SENATORS WERE TRYING TO TURN RATIFICATION OF THE PACT INTO A PARTISAN BATTLE THE SUBSIDY ISSUE ILLUSTRATES A CHANGE IN TRADE POSITION BETWEEN THE CLINTON ADMINISTRATION AND ITS PREDECESSOR UNDER PRESIDENT BUSH THE US PRESSED TO LIMIT GOVERNMENT SUBSIDIES OF RESEARCH AND DEVELOPMENT IN THE WORLD TRADE NEGOTIATIONS IN GENEVA IN DECEMBER THE CLINTON ADMINISTRATION OVERTURNED THAT POSITION AND PERSUADED OTHER COUNTRIES TO ACCEPT PROVISIONS THAT ALLOW GOVERNMENTS TO COVER AS MUCH AS 75 OF RESEARCH COSTS AND 50 OF DEVELOPMENT COSTS THE CLINTON ADMINISTRATION CONSIDERED SUCH A POSITION IMPORTANT BECAUSE IT HAS ADOPTED A POLICY OF PROMOTING COMMERCIAL RESEARCH WITH GOVERNMENT FUNDS UNLIKE THE BUSH ADMINISTRATION WHICH BRANDED THIS AS IMPROPER INDUSTRIAL POLICY THE CLINTON ADMINISTRATION WILL SUPPORT RESEARCH AND DEVELOPMENT THAT LEADS TO A PROTOTYPE FOR EXAMPLE IT PLANS TO FUND 50 OF THE COST OF BUILDING A CAR THAT IS THREE TIMES AS EFFICIENT AS CARS TODAY IN CONTRAST THE BUSH ADMINISTRATION LIMITED ITS SUPPORT TO LABORATORY RESEARCH THE SENATORS SAID THE SUBSIDIES WOULD UNDERMINE US INDUSTRIES' ABILITY TO CHARGE FOREIGN COMPANIES WITH RECEIVING UNFAIR SUBSIDIES AND DUMPING GOODS IN THE US AT UNFAIRLY LOW PRICES THE TARGET OF MUCH CRITICISM OVER GOVERNMENT SUBSIDIES IS AIRBUS INDUSTRIE A EUROPEAN AIRCRAFT CONSORTIUM THAT HAS EMERGED AS A MAJOR RIVAL TO THE US AIRCRAFT MAKERS SUCH AS BOEING CO AND MCDONNELL DOUGLAS CORP MR DANFORTH WHOSE STATE INCLUDES MCDONNELL DOUGLAS'S HEADQUARTERS SAID HE WON'T SUPPORT THE TRADE PACT IF THE SUBSIDY ARRANGEMENT ISN'T CHANGED I'D RATHER KILL THE GATT AGREEMENT THAN DO THIS HE SAID IN A BRIEFING TO REPORTERS WHILE ALL OF THE REPUBLICAN SENATORS AREN'T LIKELY TO OPPOSE THE PACT BECAUSE OF THIS ISSUE MR DANFORTH'S POSITION COULD BE TROUBLESOME BECAUSE OF HIS POSITION ON THE SENATE FINANCE COMMITTEE WHICH WILL BE A MAIN COMMITTEE CONSIDERING THE AGREEMENT MOREOVER THE REPUBLICAN POSITION IS IMPORTANT BECAUSE THE GOP HAS TRADITIONALLY PROVIDED CRUCIAL VOTES FOR TRADELIBERALIZATION MEASURES SUCH AS THE NORTH AMERICAN FREE TRADE AGREEMENT 9402010078 940201 MARKETING & MEDIA ADVERTISING SUPER BOWL ADS LOOKED WORSE THAN BILLS BY KEVIN GOLDMAN AS THE FIRST HALF OF SUPER BOWL XXVIII CONCLUDED WITH THE BUFFALO BILLS LEADING THE DALLAS COWBOYS 136 RICK BOYKO SENIOR VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR AT WPP GROUP'S OGILVY & MATHER SNICKERED AND SAID THIS IS ONE OF THE FIRST SUPER BOWLS WHERE THE GAME IS BEATING THE COMMERCIALS MR BOYKO ENSCONCED IN A PENTHOUSE AT MANHATTAN'S ROYALTON HOTEL WITH OTHER ADVERTISING EXECUTIVES WASN'T ALONE IN THAT CANDID ASSESSMENT THE CONSENSUS OF THE EXECUTIVES DURING THE 3 1/4 HOUR GAME WHICH ENDED WITH DALLAS SENDING BUFFALO TO ITS FOURTH STRAIGHT SUPER BOWL DEFEAT WAS THAT THE COMMERCIAL BREAKS PRODUCED MORE LOSERS THAN WINNERS THE SUPER BOWL PARTY AT THE ROYALTON HOSTED BY THE FALLON MCELLIGOTT AGENCY WAS HARDLY SCIENTIFIC BUT ADVERTISERS ALSO FARED POORLY IN A MORE SCIENTIFIC STUDY CREATIVE MARKETING CONSULTANTS A MARKETRESEARCH FIRM IN SOUTHFIELD MICH TELEPHONED 373 SUPER BOWL VIEWERS NATIONWIDE FOLLOWING THE GAME TO GAUGE HOW MEMORABLE EACH AD WAS WITH ONE EXCEPTION A VAST MAJORITY OF THOSE RESPONDING TO THE QUESTIONS COULDN'T RECALL THE PRODUCTS BEING ADVERTISED EVEN THE EXCEPTION ANHEUSERBUSCH'S BUD BOWL VI WON BY BUD LIGHT INCIDENTALLY DIDN'T FARE ALL THAT WELL ONLY 54 OF THE SURVEYED VIEWERS RECALLED THE ADS THAT'S A DISMAL SHOWING CONSIDERING THE BUD BOWL HAS BEEN AROUND FOR SO LONG AND THE NAME OF THE PRODUCT IS SEEN THROUGHOUT THE COMMERCIALS SAYS ROD SMITH A PARTNER WITH CREATIVE MARKETING THE BUD BOWL VARIED ITS FORMAT ONLY SLIGHTLY THIS YEAR EAGLEEYED VIEWERS MAY HAVE NOTICED SOME CROSSPROMOTION FOR ANHEUSERBUSCH WHEN A REPLAY WAS SEEN DURING THE BUD BOWL IT WAS SPONSORED BY EAGLE SNACKS A UNIT OF ANHEUSERBUSCH ANOTHER ANHEUSERBUSCH PRODUCT BUD ICE DRAFT WHICH HAD FOUR 15SECOND SPOTS IN THE GAME PERFORMED EVEN WORSE THAN THE BUD BOWL ONLY 5 OF THOSE SURVEYED RECALLED THE PRODUCT MCDONALD'S REGISTERED 16 NIKE ONLY 23 EVEN WITH THE HOOPLA OF ITS ADS FEATURING ACTOR STEVE MARTIN THAT AREN'T SCHEDULED TO BE BROADCAST AGAIN ALAMO RENT A CAR WITH A COUPLE THAT AGES AND RAISES A FAMILY WHILE ON THE ROAD ONLY 4 SUCH FINDINGS CAN'T BE GOOD NEWS TO ADVERTISERS WHO EACH YEAR SPEND MILLIONS TO PRODUCE COMMERCIALS THEY HOPE WILL DAZZLE THE VIEWERS IN PART BY BREAKING THROUGH THE CLUTTER DURING THE SUPER BOWL BROADCAST ON GENERAL ELECTRIC'S NBC THERE WERE 56 30SECOND SPOTS EACH SELLING FOR A RECORD 900000 ACCORDING TO AC NIELSEN FIGURES SUPPLIED BY NBC THE SUPER BOWL WAS WATCHED BY 454 OF US HOMES WITH TV SETS OR ABOUT 1348 MILLION VIEWERS THAT'S A SLIGHT INCREASE FROM LAST YEAR WHEN THE BIG GAME WAS WATCHED BY 451 OF US HOMES WITH TV SETS PEPSICO'S PEPSI ADS RECEIVED A 35 RECALL SCORE HIGHER THAN MOST ADVERTISERS BUT NOT VERY IMPRESSIVE GIVEN THE 54 MILLION IT SPENT ON COMMERCIALS FOR THE FLAGSHIP BRAND ALONE ONE PEPSI SPOT RECEIVED WARM LAUGHTER AND KUDOS FROM THE AD AGENCY EXECUTIVES EATING LASAGNA AND CAESAR SALAD AT THE ROYALTON THAT COMMERCIAL WAS THE WOODSTOCK REUNION MAYBE THE EXECUTIVES SAW A BIT OF THEMSELVES IN THE COMMERCIAL WHICH HAD FORMERHIPPIESTURNEDBUSINESSEXECUTIVES RETURNING IN BMWS TO THE SITE OF THE ROCK MUSIC FESTIVAL WAVY LAY'S AD FROM PEPSI'S FRITOLAY DIVISION WAS CONSIDERED A WINNER BY MR SMITH IN HIS COMPANY'S SURVEY 38 RECALLED THE PRODUCT AND THE SPOT WHICH FEATURED A WIDELY PUBLICIZED APPEARANCE BY FORMER VICE PRESIDENT DAN QUAYLE MR SMITH SAYS THAT SCORE WAS UNUSUALLY STRONG IN LIGHT OF THE FACT THAT WAVY LAY'S IS A NEW RELATIVELY UNKNOWN PRODUCT AND HAD ONLY ONE COMMERCIAL IN THE SUPER BOWL SEVERAL STYLISH AND SEXY BLACK AND WHITE ADS FROM NORWEGIAN CRUISE LINES DREW ENTHUSIASTIC RESPONSES FROM THE ROYALTON GANG BUT WITH A PUNY 3 RECALL FROM CREATIVE MARKETING THEY BARELY REGISTERED WITH OTHER VIEWERS DESPITE A TEASER CAMPAIGN EARLIER THIS MONTH FROM CHRYSLER FOR ITS NEON MODELS ONLY 10 OF THOSE SURVEYED RECALLED THE NEON COMMERCIALS DURING THE SUPER BOWL AND THEY DREW A HOHUM REACTION FROM THOSE INVITED BY FALLON EACH AD ENDED WITH THE WORD HI ABOVE THE IMPISH LOOKING NEON MAYBE CHRYSLER SHOULD LEARN THAT CARS THAT TALK MAY MAKE FOR A TELEVISION SERIES MY MOTHER THE CAR OR KNIGHT RIDER BUT NEVER A COMMERCIAL OR AT LEAST HAVE THE CAR MAKE PITHY COMMENTS A CHRYSLER SPOKESMAN SAYS THE COMPANY IS PLEASED WITH THE ADS HOWEVER IT CONDUCTED A THREECITY EXPERIMENT IN WHICH A TOTAL OF 689 VIEWERS COULD ASK FOR MORE INFORMATION ABOUT THE NEON THE AUTO MAKER REPORTS THAT 59 WANTED ADDITIONAL INFORMATION SENT IT SEEMED AS IF SOME SUPER BOWL COMMERCIALS SHOULD BE AS RETIRED AS JOE NAMATH THE FORMER NEW YORK JETS QUARTERBACK WHO FLIPPED THE GAMEOPENING TOSS SUNDAY FOR INSTANCE THE MCDONALD'S SPOT OF A SHOOTING CONTEST BETWEEN LARRY BIRD AND MICHAEL JORDAN WAS CLEVER THE FIRST YEAR AMUSING THE SECOND BUT BORDERING ON ANNOYING AND TIRED ON SUNDAY THE BUD BOWL SHOULDN'T HAVE GOTTEN TO BUD BOWL II AND PLEASE SEVENUP ISUZU LIPTON AND GOODYEAR IF YOU'RE GOING TO ADVERTISE ON THE SUPER BOWL COME WITH SOMETHING SPECIAL FINALLY A PARTING COMMENT THAT SHOULD WORRY SOME ON MADISON AVENUE MR SMITH OF CREATIVE MARKETING SAYS THE BEST TIME TO SURVEY VIEWERS IS IMMEDIATELY FOLLOWING THE GAME WHY THERE IS TREMENDOUS DROPOFF IN VIEWER RECALL OF COMMERCIALS EVEN AFTER ONE DAY NINE HUNDRED THOUSAND DOLLARS FOR THAT INTERPUBLIC GROUP OF COS THE NEW YORK HOLDING COMPANY DISCUSSED A POSSIBLE ACQUISITION OF AMMIRATI & PURIS NEW YORK BUT THE TALKS WEREN'T SERIOUS BOTH PARTIES SAID A FRONTPAGE STORY IN YESTERDAY'S ADVERTISING AGE REPORTED PRELIMINARY DISCUSSIONS RELATED TO A POSSIBLE PURCHASE OF CLOSELY HELD AMMIRATI & PURIS BY INTERPUBLIC GROUP THE MAGAZINE SAID THAT UNDER SUCH A SCENARIO THE AMMIRATI AGENCY WOULD CONTINUE AS A SEPARATE UNIT MOST LIKELY REPORTING THROUGH INTERPUBLIC'S LOWE GROUP INTERPUBLIC'S CHAIRMAN PHILIP GEIER SAID EXECUTIVES AT THE TWO COMPANIES HAVE DISCUSSED THE POSSIBILITY CASUALLY BUT SAID NO DEAL IS IN THE WORKS PEOPLE HAVE LUNCH ALL THE TIME HE SAID THERE'S NOTHING GOING ON MARTIN PURIS CHIEF EXECUTIVE OFFICER AND PRESIDENT OF AMMIRATI SAID IN A PREPARED STATEMENT WHILE WE ARE ALWAYS INTERESTED IN LISTENING TO PROPOSALS THERE IS NO REASON FOR US TO WANT TO TINKER WITH THE AGENCY'S HIGHLY EFFECTIVE FORMULA FOR SUCCESS INDUSTRY EXECUTIVES WERE SURPRISED TO LEARN THAT THE AMMIRATI AGENCY WOULD ENTERTAIN THE IDEA OF A PARENT COMPANY AMMIRATI BOUGHT ITSELF BACK FROM OMNICOM GROUP IN 1990 AFTER OMNICOM'S 1989 PURCHASE OF AMMIRATI'S THENPARENT BRITISHBASED BOASE MASSIMI POLLITT REVIEWS FMR CORP'S FIDELITY INVESTMENTS SAID IT IS HOLDING A CONTRACTUALLY MANDATED REVIEW OF ITS 15 MILLION TO 20 MILLION CORPORATE AD ACCOUNT A SPOKESWOMAN DECLINED TO ELABORATE INTERPUBLIC GROUP'S MCCANNERICKSON WAS THE LAST AGENCY ON THE ACCOUNT WHICH HAS BEEN INACTIVE RECENTLY STAPLES INC THE FRAMINGHAM MASS OFFICESUPPLY CHAIN SAID IT IS SEEKING AN AGENCY TO HANDLE CREATIVE DUTIES ON A BROADCAST AND PRINT ASSIGNMENT WE DON'T HAVE AN AGENCY OF RECORD AND WE DON'T WANT ONE SAID PHYLLIS WASSERMAN VICE PRESIDENT OF ADVERTISING STAPLES SPENDS 15 MILLION TO 20 MILLION ANNUALLY ACCORDING TO ADWEEK MAGAZINE 9402010077 940201 TONYA HARDING ISN'T OREGON'S ONLY PROBLEM BY GARY EISLER PORTLAND ORE SEN BOB PACKWOOD VISITED HIS HOME STATE OF OREGON RECENTLY AND RETURNED TO WASHINGTON DC JUBILANT THAT HIS TRIP DID NOT GENERATE AS MUCH FUROR AS IT HAS EVERY OTHER TIME FOR THE PAST YEAR THE REASON EVERYONE WAS FIXATED ON TONYA HARDING THE FIGURE SKATING STAR WHO IS THE LATEST OREGON EMBARRASSMENT A NEW JOKE MAKING THE ROUNDS ASKS WHAT DO BOB PACKWOOD AND TONYA HARDING HAVE IN COMMON THE REPLY THEY'RE BOTH ON THIN ICE AND THEY BOTH HIT ON WOMEN THE STATE'S MAIN DAILY NEWSPAPER THE OREGONIAN IN AN EDITORIAL TITLED OREGON THINGS LOOK WEIRDER HERE SPECULATED THAT THE NATIONAL ENQUIRER MIGHT OPEN A PORTLAND BUREAU AND THAT MICHAEL JACKSON AND LORENA BOBBITT MIGHT AS WELL MOVE HERE TOO THE PACKWOOD AND HARDING SCANDALS THE WORLD SEES UNFORTUNATELY ARE JUST FROSTING ON THE CAKE OREGON HAS EMBARRASSMENTS THE OUTSIDE WORLD HAS BARELY HEARD OF THE REAL PROBLEM IS THAT OREGON HAS FALLEN SO FAR SO FAST FROM PARADISE TO JUST ABOUT LIKE ANYWHERE ELSE IN THE SPAN OF A DECADE OR SO IT WAS LITTLE MORE THAN THAT WHEN PORTLAND WAS RANKED AS THE MOST POLITE CITY IN THE COUNTRY TODAY HANDGUN REGISTRATIONS ARE SPIRALING A DECADE AND A HALF AGO PORTLAND WAS RANKED AS AMERICA'S MOST LIVABLE CITY TODAY NATIONAL MAGAZINES CALL IT TAX HELL OREGONIANS USED TO LOOK IN HORROR ON SENSELESS CRIMES LIKE DRIVEBY SHOOTINGS AND FREEWAY MURDERS THAT HAPPENED TO THE SOUTH OF US THOSE THINGS SIMPLY DID NOT TAKE PLACE HERE THIS WAS A NICE SAFE QUIET PLACE AND THAT'S THE WAY WE LIKED IT EVER SINCE THE FIRST DRIVEBY SHOOTING IN 1988 HOWEVER IT HAS BEEN A DIFFERENT STORY OREGON HAS BEEN BESET WITH A SERIES OF HORRIBLE SHOCKING CRIMES FIRST THERE WAS THE ETHIOPIAN WHO WAS BEATEN TO DEATH WITH BASEBALL BATS BY WHITE SUPREMACISTS AND JUST IN THE PAST YEAR THERE WAS THE WHITE COUPLE THAT WAS SWARMED BY A MOB OF UP TO 150 BLACK TEENAGERS WITH THREE OF THEM TRIED FOR BEATING AND KICKING THE MALE INTO BRAIN DAMAGE NOW OREGON IS SETTING NEW RECORDS THERE IS THE 103YEAROLD MAN WHO WAS BLUDGEONED TO DEATH WITH FIVE WHITE TEENAGE BOYS HELD AS SUSPECTS HE WAS THE OLDEST PERSON EVER BLUDGEONED TO DEATH HERE AND ONE PORTLAND SUBURB RECENTLY SET A RECORD WITH ITS FIRST TRIPLE MURDER HIGH CURVING FENCES ARE BEING INSTALLED ON MAJOR FREEWAY OVERPASSES BECAUSE RECENTLY SOME TEENAGERS HURLED A CHUNK OF CONCRETE THROUGH THE WINDSHIELD OF A CAR BELOW SMASHING A WOMAN'S FACE AND LET'S NOT FORGET ELIZABETH DIANE DOWNS THE WOMAN WHO SHOT HER OWN CHILDREN OR KATHERINE ANN POWER THE FUGITIVE FROM THE 1970 ROBBERY/MURDER WHO HOLED UP IN OREGON FOR 20 YEARS OREGON ALSO GAINED NOTORIETY AS THE HOME OF BALLOT MEASURE 9 WHICH SUPPORTERS SAID AIMED TO PREVENT HOMOSEXUALS FROM GAINING SPECIAL RIGHTS AND OPPONENTS MAINTAINED WAS ACTUALLY AIMED AT STRIPPING THEM OF CIVILRIGHTS PROTECTION TONYA HARDING IS NOT OUR FIRST SPORTS SCANDAL IT WAS BUT A YEAR AGO OR SO THAT SOME OF OUR PORTLAND TRAILBLAZERS GOT INTO HOT WATER FOR FORNICATING WITH RUNAWAY TEENAGE GIRLS THEY HAD PICKED UP IN A SALT LAKE CITY MALL IT WOULD BE EASY TO BLAME ALL THE CRAZINESS ON THE INFLUX OF CALIFORNIANS AFTER ALL ABOUT A THIRD OF THE STATE'S POPULATION WASN'T HERE A DECADE AGO BUT OUR MOST NOTORIOUS RESIDENTS SEN PACKWOOD AND MS HARDING ARE LOCALS IN ADDITION TO THE BAD PRESS FROM OUR FLOCK OF UNSAVORY PEOPLE OREGONIANS FACE A GROWING HOSTILITY BETWEEN CITIZENS AND GOVERNMENT SO HIGH IS THE HEAT THAT SOME PUBLIC FIGURES ARE GETTING OUT OF THE KITCHEN FOR EXAMPLE REP MIKE KOPETSKI A RELATIVELY NEW CONGRESSMAN WITH A PROMISING CAREER DECIDED NOT TO RUN FOR REELECTION IN PART BECAUSE OF THE PUBLIC CLIMATE HE HAD BEEN CONVICTED OF DRUNKEN DRIVING AND MAY NOT HAVE WANTED TO WALK IN FIRE AS HAD MR PACKWOOD THERE IS LITTLE QUESTION THAT CONDITIONS HAVE DETERIORATED BUT IT IS ALSO TRUE THAT FOR MANY YEARS PROBLEMS WERE UNDERREPORTED WHEN MEDIA PEOPLE MOVE HERE MANY WANT TO STAY SO BADLY THAT THEY PULL PUNCHES IN ORDER TO FIT INTO THE COMMUNITY AFTER ALL IT TOOK THE WASHINGTON POST TO BREAK THE STORY ABOUT SEN PACKWOOD'S SEXUAL ESCAPADES TO REGAIN THE ADVERSARIAL RELATIONSHIP WITH GOVERNMENT AT LEAST ONE MAJOR NEWSPAPER IS REPORTEDLY HIRING MOSTLY OUTSIDERS PEOPLE WHO HAVE NOT YET BEEN COOPTED THE CHASM BETWEEN THE GOVERNED AND GOVERNMENT IS EVIDENT IN THE CONFLICT OVER TAXES OREGONIANS VOTED IN A PROPERTY TAX LIMITATION MEASURE BALLOT MEASURE FIVE RATHER THAN SLASH EXPENDITURES GOV BARBARA ROBERTS RESPONDED BY ASKING VOTERS TO APPROVE A SALES TAX AFTER ONE HAD BEEN DEFEATED HERE EIGHT TIMES IN THE PAST NOT ONLY DID IT NOT PASS BUT IT SO TURNED VOTERS AGAINST HER THAT ON FRIDAY SHE ANNOUNCED THAT SHE WON'T BE RUNNING FOR REELECTION ONE OF THE LATEST PACKWOOD JOKES HAS TAKEN ON A NEW TWIST HAVE YOU HEARD THAT PACKWOOD IS RESIGNING FROM THE SENATE HE'S RUNNING FOR GOVERNOR INSTEAD BECAUSE ROBERTS'S SEAT IS UP FOR GRABS OREGON STILL HAS A RELATIVELY HOT ECONOMY AND DOUBLE THE NATIONAL POPULATION GROWTH RATE IT BOASTS A RUGGED COASTLINE LUSH FOREST AND FARMLAND TOWERING MOUNTAINS AND A MOIST MODERATE CLIMATE BUT THE CLOUDS OVERHEAD ARE NOT FROM THE WINTER RAINS THEY ARE FROM A SENSE OF PARADISE LOST MR EISLER IS A FREELANCE WRITER IN PORTLAND 9402010076 940201 BUSINESS BRIEF ARMCO INC OPERATING INSURANCE BUSINESS TO BE SOLD TO VIK BROTHERS ARMCO INC SAID IT PLANS TO SELL ITS OPERATING INSURANCE BUSINESSES TO CLOSELY HELD VIK BROTHERS INSURANCE INC FOR ABOUT 85 MILLION AND WILL TAKE A CHARGE TO REFLECT THE SALE ARMCO A DOMESTIC PRODUCER OF STAINLESS AND ELECTRICAL STEEL SAID IT WOULD TAKE A CHARGE AGAINST FOURTHQUARTER EARNINGS OF 45 MILLION IN CONNECTION WITH THE PROPOSED SALE THE PITTSBURGH COMPANY POSTED A LOSS OF 3767 MILLION OR 368 A SHARE IN THE 1992 FOURTH QUARTER VIK BASED IN RALEIGH NC IS A PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY 9402010075 940201 INQUIRY BY FDA FAULTS COPLEY ON ALBUTEROL REPORT FOCUSES ON PURITY OF WATER USED TO MAKE RECALLED ASTHMA DRUG BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL A FOOD AND DRUG ADMINISTRATION INVESTIGATION HAS FOUND IRREGULARITIES IN THE PRODUCTION OF COPLEY PHARMACEUTICAL INC'S RECALLED ASTHMA DRUG ALBUTEROL THE FDA IN AN INVESTIGATIVE REPORT RELEASED YESTERDAY UNDER THE FREEDOM OF INFORMATION ACT SAID IT FOUND SEVERAL LEAKS AND OTHER POTENTIAL SOURCES OF CONTAMINATION IN A WATERPURIFICATION SYSTEM USED TO MAKE ALBUTEROL AN INHALANT SOLUTION THE AGENCY ALSO SAID BACTERIAL COUNTS IN COPLEY'S INTERNAL MONITORING OF ALBUTEROL PRODUCTION WEREN'T ACCURATELY RECORDED THE REPORT WHICH HAD SEVERAL EXCISED PORTIONS SUGGESTED THAT COPLEY INSPECTORS SIGNED OFF ON INTERNAL WATERQUALITY DOCUMENTATION INVOLVED IN MAKING ALBUTEROL BEFORE FINAL BACTERIAL COUNTS WERE COMPLETED THE REPORT COULD ADD TO COPLEY'S TROUBLE OVER THE ALBUTEROL RECALL WHICH HAS PROMPTED LAWSUITS AND MEDICAL CONCERN ABOUT THE QUALITY OF GENERIC DRUG PRODUCTION COPLEY IS ONE OF THE LARGEST PRODUCERS OF GENERICS WHICH ARE LOWERCOST VERSIONS OF DRUGS ORIGINALLY MARKETED AT HIGHER PRICES BY OTHER PHARMACEUTICAL FIRMS COPLEY PRESIDENT ANTHONY BONELLI THROUGH A SPOKESMAN SAID YESTERDAY WE ARE PREPARING A COMMENT TO THE FDA COPLEY CONTINUES TO RESPONSIBLY ADDRESS THIS MATTER AND ALL OF THESE ISSUES CAN AND WILL BE RESPONSIBLY AND ADEQUATELY RESOLVED THE FDA REPORT CRITICIZES COPLEY ON A NUMBER OF FRONTS INCLUDING FAILING TO HAVE WRITTEN PROCEDURES FOR MICROBIOLOGICAL MONITORING AND THE SANITATION AND MAINTENANCE OF THE WATERPURIFICATION SYSTEM USED IN THE PRODUCTION OF ALBUTEROL THE REPORT ALSO CITED DEFICIENCIES IN COPLEY'S MANUFACTURING PROCESSES WATERPURIFICATION SYSTEM DRAIN LINES WERE FOUND EXTENDED INTO THE FLOOR DRAINS IT SAYS THE REPORT ADDS THAT SIX LEAKS WERE OBSERVED IN THE WATERPURIFICATION SYSTEM INCLUDING TWO SITUATED AFTER THE FINAL FILTER SUCH LEAKS REPRESENT POTENTIAL SOURCES OF BACTERIAL CONTAMINATION IN EARLY JANUARY COPLEY ANNOUNCED A NATIONWIDE RECALL OF ALBUTEROL IN ITS 05 CONCENTRATION DUE TO WATERBORNE BACTERIAL CONTAMINATION SINCE THEN THE COMPANY HAS BEEN NAMED IN TWO LAWSUITS IN CHICAGO ALLEGING CHILDREN DEVELOPED SERIOUS ILLNESSES AFTER USING ALBUTEROL THE FDA REPORT ALSO NOTES THAT SOME GAUGES WERE NOT CALIBRATED CORRECTLY AND THAT SOME MICROBIOLOGICAL MONITORING RESULTS WERE NOT ACCURATE IT ALSO SAYS THAT ON THREE OCCASION A NOTEBOOK IN THE WATER TESTING LABORATORY WAS SIGNED OFF BY THE ANALYST ONE DAY PRIOR TO WHEN THE EXCISED PLATE COUNT RESULTS WOULD HAVE BEEN RECORDED IN ANOTHER INSTANCE THE AGENCY'S REPORT SAYS A LINE OPERATOR RESPONSIBLE FOR CLEANING THE EXCISED LIQUID SYSTEM FAILED TO PROPERLY DRAIN THE LINES OF RINSED DEIONIZED WATER BETWEEN BATCHES DEVIATING FROM WRITTEN PROCEDURE SUSAN CRUZAN AN FDA SPOKESWOMAN IN ROCKVILLE MD SAID SHE COULDN'T COMMENT ON THE DETAILS OF THE REPORT AT THIS POINT IT'S UP TO THE FIRM TO LOOK AT THIS TO CORRECT ALL THESE THINGS OR TELL THE FDA WHETHER OR NOT THEY SEE THEM AS PROBLEMS THAT NEED TO BE CORRECTED SHE SAID THE INVESTIGATION WAS PERFORMED AT COPLEY'S CANTON MASS FACILITY 9402010074 940201 CAMPUS MOVEMENT MARQUETTE UNIVERSITY LEADS URBAN REVIVAL OF BLIGHTED ENVIRONS IN MILWAUKEE SCHOOL RESISTS URGE TO WALL ITSELF IN FROM CRIME AND DECAY MEETING SKEPTICAL NEIGHBORS BY JOSEPH N BOYCE STAFF REPORTER OF THE WALL STREET JOURNAL MILWAUKEE WHEN THE REV ALBERT DIULIO ARRIVED AT MARQUETTE UNIVERSITY AS PRESIDENT IN 1990 HE FACED A DISTURBING PROSPECT MARQUETTE AND ITS 11000 STUDENTS MIGHT HAVE TO WALL THEMSELVES IN FOR THEIR OWN SAFETY GANGS DRUG DEALERS AND PROSTITUTES HAD MOVED INTO AVENUES WEST A 100SQUAREBLOCK AREA NEAR DOWNTOWN THAT HAS BEEN HOME TO THE JESUIT UNIVERSITY FOR 113 YEARS FEAR AND VIOLENCE MOVED IN WITH THEM WE WERE HAVING DRIVEBY AND STANDBY SHOOTINGS SAYS VIRGINIA JOHNSON A COMMUNITY ACTIVIST BUT INSTEAD OF BUILDING A WALL AROUND THE UNIVERSITY FATHER DIULIO HAS LED MARQUETTE IN REBUILDING THE COMMUNITY I COULD SEE WHERE WE WERE GOING I COULD SEE THE ECONOMIC CONSEQUENCES AND I COULD SEE THE ECONOMIC POTENTIAL OF REVERSING THE DECLINE HE SAYS MARQUETTE'S SITUATION EXEMPLIFIED A TOWNANDGOWN DILEMMA CONFRONTING MANY URBAN COLLEGES AND UNIVERSITIES BUILT NEAR CITY CENTERS ON ONCEPRIME ACREAGE THEY NOW ARE ENCIRCLED BY NEIGHBORHOODS MIRED IN CRIME DECAY AND HUMAN MISERY SECURITY CONCERNS OFTEN COMPETE WITH EDUCATION FOR ATTENTION AND FINANCIAL RESOURCES SOME INSTITUTIONS HAVE BAILED OUT OF THE CITIES IN THE WAKE OF THE WATTS RIOTS IN SOUTH CENTRAL LOS ANGELES PEPPERDINE LEFT THE AREA FOR MALIBU CALIF IN 1972 MARQUETTE'S FORMER MEDICAL SCHOOL MOVED TO A SUBURB IN THE 1960S BUT NOW MANY URBAN SCHOOLS ARE NO LONGER TRYING TO PUT DISTANCE BETWEEN THEMSELVES AND THEIR TROUBLED SURROUNDINGS INSTEAD ALL OVER THE COUNTRY INSTITUTIONS HAVE BEEN GETTING MORE INVOLVED IN ATTACKING PROBLEMS OF THEIR HOME TURF THE UNIVERSITY OF SOUTHERN CALIFORNIA HAS BECOME INVOLVED IN PROVIDING COUNSELING TUTORING AND COLLEGE PREPARATORY CLASSES FOR CHILDREN IN SOUTH CENTRAL LOS ANGELES YALE HAS AGREED TO INVEST 50 MILLION IN IMPROVEMENT PROJECTS IN NEW HAVEN CONN WHILE MORE THAN HALF OF ITS STUDENTS ARE VOLUNTEERING IN LOCAL SOCIAL SERVICE PROGRAMS AND ILLINOIS INSTITUTE OF TECHNOLOGY IS GETTING MORE INVOLVED IN COMMUNITY REVITALIZATION EFFORTS ON CHICAGO'S SOUTH SIDE IT IS DIFFERENT FROM THE 1960S AND 1970S WHEN THE SCHOOL WAS TRYING TO PUT IN A BUFFER BETWEEN ITSELF AND THE COMMUNITY SAYS LEROY KENNEDY IIT'S VICE PRESIDENT FOR COMMUNITY RELATIONS YOU CAN ONLY RUN SO FAR IN THE NEIGHBORHOODS AROUND THE UNIVERSITY CRIME HAD BEEN STEADILY RISING OVER THE YEARS AND OCCASIONALLY SPILLED ONTO CAMPUS THREE STUDENTS BECAME HOMICIDE VICTIMS BETWEEN 1985 AND 1991 TWO OF THE KILLINGS OCCURRED NEAR THE SCHOOL THEN JEFFREY DAHMER WAS ARRESTED IN JULY 1991 FOR MULTIPLE MURDERS AND CANNIBALISM HIS APARTMENT WHERE SOME OF THE VICTIMS' REMAINS WERE FOUND WAS JUST 10 BLOCKS FROM MARQUETTE MAPS ACCOMPANYING DAHMER STORIES OFTEN USED THE CAMPUS AS A REFERENCE POINT ATTENDANCE AT EVENING CAMPUS EVENTS FELL GRADUATE STUDENTS SOUGHT HOUSING ELSEWHERE FRESHMAN ENROLLMENT 2113 IN 1989 PLUNGED TO 1685 IN 1993 IF MARQUETTE WAS TO STAY IN THE COMMUNITY FATHER DIULIO SAW JUST TWO OPTIONS WE COULD WALL OURSELVES IN OR WE COULD WEAVE OURSELVES IN DOING THE LATTER MEANT MELDING WITH A NEIGHBORHOOD SPICED WITH RACIAL AND ETHNIC DIVERSITY BUT SOURED BY POVERTY AND NEGLECT IT WAS A PLACE THAT HAD BECOME OLDER RATHER THAN YOUNGER POORER RATHER THAN RICHER SAYS THE 50YEAROLD FATHER DIULIO A MARQUETTE STUDENT IN THE EARLY 1960S IN 1990 MOST OF THE 16000 OR SO RESIDENTS IN AVENUES WEST HAD INCOMES BELOW POVERTY LEVEL ACCORDING TO CENSUS DATA ABOUT 60 OF THE BUILDINGS CONTAINED 20 OR MORE RENTAL UNITS AND ONLY 42 OF HOUSING UNITS WERE OWNEROCCUPIED MUCH OF THE PROPERTY WAS OWNED BY ABSENTEE LANDLORDS WHO LET IT FALL INTO DISREPAIR OR CEDED IT TO DRUG DEALERS IN CASTING MARQUETTE'S LOT WITH AVENUES WEST FATHER DIULIO DECIDED TO TAKE A COMPREHENSIVE APPROACH THAT WOULD GO BEYOND SIMPLY RESTORING PROPERTY YOU CAN'T JUST SAY YOU'RE INTERESTED IN STUDENT HOUSING HE SAYS AND IT WOULD TAKE MORE THAN ALTRUISM TO WIN SUPPORT OF MARQUETTE'S TRUSTEES HE REASONED TO SELL THIS TO THE BOARD IT HAD TO BE IN ROCKSOLID UNDERSTANDABLE BUSINESS TERMS HIS EMPHASIS ON THE PRAGMATIC PERSUADED TRUSTEES IN LATE 1991 TO COMMIT 9 MILLION IN UNIVERSITY FUNDS HEARING OF THE PRESIDENT'S PLANS A WEALTHY WIDOW AND LONGTIME MILWAUKEE RESIDENT DONATED 82 MILLION ANONYMOUSLY ANOTHER ANONYMOUS DONOR GAVE 500000 ALTHOUGH HE HAD A BUSINESS BACKGROUND FATHER DIULIO KNEW LITTLE ABOUT REAL ESTATE HE HIRED AN ALUMNUS PATRICK LESAGE 50 A FORMER REAL ESTATE DEVELOPER AND ENTREPRENEUR MR LESAGE AND A SMALL STAFF BEGAN WORKING FROM A 1988 STUDY ASSESSING THE COMMUNITY'S NEEDS AND COMMISSIONED BY AVENUES WEST ASSOCIATION A CIVIC GROUP THEY FORMED TWO NONPROFIT CORPORATIONS ONE FOR RESIDENTIAL AND THE OTHER FOR COMMERCIAL REAL ESTATE THEN SEVERAL LOCAL ORGANIZATIONS WERE RECRUITED AS PARTNERS INCLUDING THE AVENUES WEST ASSOCIATION AURORA HEALTH CARE SYSTEM WHICH RUNS SINAI SAMARITAN MEDICAL CENTER THE AREA'S LAST REMAINING HOSPITAL AND AMERITECH OF WISCONSIN WHICH HAS FACILITIES IN THE AREA WITH MORE THAN 300 EMPLOYEES AURORA WITH 1400 EMPLOYEES AT SINAI MEDICAL HAS PROMISED 41 MILLION IN LAND CASH AND SERVICES WE DECIDED THAT INSTEAD OF CRYING IN OUR BEER ABOUT THE NEIGHBORHOOD WE'VE GOT TO DO SOMETHING ABOUT IT SAYS AURORA'S PRESIDENT ED HOWE IN DECEMBER 1991 MARQUETTE AND ITS PARTNERS LAUNCHED CAMPUS CIRCLE PROJECT ITS AIM WAS TO BUY RESIDENTIAL AND COMMERCIAL PROPERTIES INCLUDING SEVERAL BARS CATERING TO THE BOTTLEINAPAPERBAG CROWD FIX THEM UP AND LEASE THEM PRIORITIES WERE TO CLEAN UP CRIME UPGRADE THE REAL ESTATE AND KEEP HOUSING AFFORDABLE WHILE RETAINING THE COMMUNITY'S ETHNIC AND ECONOMIC DIVERSITY BUT MANY RESIDENTS REACTED WITH SUSPICION IT HAS NOT BEEN IN MARQUETTE'S HISTORY TO WORK IN THE COMMUNITY SAYS JOYCE HENRY WHO RUNS A HALFWAY HOUSE FOR HOMELESS PEOPLE THEIR COMMUNITY YES THE REST OF THE COMMUNITY NO FATHER DIULIO CONCEDES THAT PREVIOUSLY BEYOND OFFERING SOME HEALTH AND LEGAL SERVICES MARQUETTE SIMPLY DID NOT DO ANYTHING IN THE NEIGHBORHOOD TO GAIN SUPPORT MARQUETTE FORMED NEIGHBORHOOD CIRCLE MADE UP OF REPRESENTATIVES FROM LOCAL BUSINESSES CHURCHES COMMUNITY GROUPS AND SOME RESIDENTS TO HELP IN PLANNING AND TO KEEP PEOPLE INFORMED THEY HELD SCORES OF MEETINGS WITH ORGANIZATIONS LANDLORDS TENANTS AND CITY OFFICIALS WHEN INITIAL TURNOUT WAS POOR THEY BEGAN SERVING FOOD AT MEETINGS WE WENT ON A ROAD SHOW SAYS MR LESAGE MS JOHNSON THE COMMUNITY ACTIVIST WHO OWNS A TAX PREPARATION AND ACCOUNTING SERVICE ATTENDED ONE OF THE EARLY GATHERINGS AND SPOKE OUT FORCEFULLY ON BEHALF OF LOWINCOME RESIDENTS SHE UZIED' US RECALLS SANDRA HINTZ VICE PRESIDENT OF CAMPUS CIRCLE WHO WAS THERE TO HEAR THE CRITICISM MS JOHNSON SAYS HER CONCERN THEN WAS THAT MARQUETTE HAD THIS FANCY PLAN THAT WAS LIKE AN ELEGANT BOX WITH NOTHING BUT A CARD INSIDE ATTITUDES SOFTENED AS CAMPUS CIRCLE BOUGHT ONE APARTMENT HOUSE AFTER ANOTHER RENOVATING SOME UNITS AND TEMPORARILY BOARDING UP OTHERS THAT REQUIRED EXTENSIVE OVERHAUL IN ONE STRUCTURE WITH 60 APARTMENTS MORE THAN TWOTHIRDS HAD BEEN DAMAGED BY FIRE OR USED FOR DRUG ACTIVITY IT HAS BEEN SOLD TO BE CONVERTED TO LOWINCOME HOUSING FOR THE ELDERLY WHENEVER POSSIBLE OCCUPANTS WERE ALLOWED TO REMAIN IN THEIR BUILDINGS BUT SOME WERE RELOCATED IN THE NEIGHBORHOOD STUDENTS AND NONSTUDENTS WERE MOVED INTO SOME OF THE SAME BUILDINGS TENANTS SUSPECTED OF DRUG DEALING WERE SENT A MESSAGE THAT THEY WEREN'T WANTED AS THE NEW OWNERS HIRED SECURITY GUARDS TO PATROL PROPERTIES AND ENFORCED LEASE CLAUSES BANNING MISUSE OF PREMISES OTHER LANDLORDS IN THE AREA WERE NOTIFIED OF THE EVICTIONS NO LOITERING AND NO TRESPASSING SIGNS BEGAN APPEARING IN APARTMENTHOUSE LOBBIES AND TENANTS AND VISITORS WERE ADMONISHED AGAINST DRINKING OR MAKING LOUD NOISES OUTSIDE THE BUILDINGS SOME COMMUNITY LEADERS HAVE CRITICIZED THE APPROACH AS HEAVYHANDED THEY HAVE WHAT APPEAR TO BE VALID COMMUNITY GOALS BUT THE PROCESS IS QUESTIONABLE SAYS MACCANON BROWN A LONGTIME ADVOCATE FOR THE POOR AND HOMELESS IN AVENUES WEST SHE HAS REPEATEDLY AT MEETINGS AND IN THE PRESS CHARGED THE PROJECT WITH INSENSITIVITY TOWARD THE POOR CAMPUS CIRCLE IS BETTER THAN WHAT WE HAD BUT THE PEOPLE I'M IN THE NETWORK WITH ARE PRIMARILY THE POOR WHO HAVE WATCHED MARQUETTE FOR MANY YEARS AND KNOW THEY HAVE BEEN A BAD CITIZEN SHE SAYS SOME RENTERS GRIPED THAT THE NEW LANDLORDS TOOK TOO LONG TO COMPLETE REPAIRS ONE FORMER TENANT DENNIS HODOROWSKI 45 SAYS HIS TREATMENT BY CAMPUS CIRCLE AMOUNTED TO HARASSMENT AFTER HE WAS TOLD HE WAS BEHIND IN HIS RENT THEY GAVE ME FIVE DAYS NOTICE OF EVICTION BUT THEY COULDN'T FIND WHERE I HAD A MISSING PAYMENT HE SAYS CAMPUS CIRCLE STAFFERS ATTRIBUTE SOME OF THE PROBLEMS TO OUTSIDE CONTRACTORS HIRED TO PROVIDE SECURITY AND MANAGEMENT SERVICES THEY SAY SOME ERRONEOUS EVICTION NOTICES WERE SENT BECAUSE OF BOOKKEEPING PROBLEMS CAUSED BY THE CHANGE IN OWNERSHIP TO CAMPUS CIRCLE WE ACQUIRED A LOT OF PROPERTIES IN A SHORT PERIOD OF TIME SAYS ART MURCHINSON MANAGER OF TENANT RELATIONS THEY HAD HAD ABSENTEE LANDLORDS THAT DIDN'T CARE ABOUT THE NEIGHBORHOOD OR THE BUILDINGS AND ALLOWED ANY AND EVERYBODY TO MOVE INTO THEM WITHOUT ANY TYPE OF SCREENING PROCESS THE CONFUSION SUBSIDED WHEN CAMPUS CIRCLE ITSELF BEGAN MANAGING THE PROPERTIES AND PROVIDING SECURITY SCREENED TENANT APPLICANTS MORE CLOSELY INSTALLED NEW LOCKS AND OTHER PROTECTION DEVICES AND HELPED FORM TENANT COUNCILS IT ALSO BEGAN RENOVATING THE SMALL BUSINESS DISTRICT NEAR CAMPUS BUYING NINE OF THE 15 TAVERNS ALL BUT THREE OF THE NINE BARS HAVE BEEN CLOSED AND FIVE HAVE BEEN DEMOLISHED OR ARE SCHEDULED TO BE RESIDENTS RESPONDING TO A QUESTIONNAIRE SAID A SUPERMARKET WAS A TOP PRIORITY ALTHOUGH THE NEIGHBORHOOD'S DEMOGRAPHICS HAVE BEEN A TURNOFF FOR MAJOR SUPERMARKET CHAINS CAMPUS CIRCLE IS TRYING TO WOO A STORE WAY ABOVE ANYTHING THE NEIGHBORHOOD HAS HAD SAYS FATHER DIULIO IT WOULD BE PART OF CAMPUS TOWN CAMPUS CIRCLE'S 30 MILLION MAKEOVER OF BUSINESS AND APARTMENT BUILDINGS NEAR MARQUETTE WHEN COMPLETED THIS FALL CAMPUS TOWN WILL HAVE 152 APARTMENTS AN ATHLETIC CENTER AND 89000 SQUARE FEET OF COMMERCIAL SPACE INCLUDING A BLOCKBUSTER VIDEO STORE THAT IS ALREADY OPEN ALL OF THIS ACTIVITY HAS ATTRACTED SOME DEVELOPERS INTO THE NEIGHBORHOOD SEPARATE FROM MARQUETTE'S EFFORTS LAST AUGUST A BUILDER COMPLETED A 179UNIT APARTMENT COMPLEX ADJACENT TO CAMPUS TOWN THE VIEW FROM THE COMMUNITY NOW IS THAT THINGS ARE LOOKING UP I SAW THE DOWNSLIDE AND NOW I THINK WE'RE ON THE REBOUND SAYS TOM WISEMAN OWNER OF BRETT FUNERAL HOME AND A BUSINESSMAN IN THE AREA SINCE 1968 CAMPUS CIRCLE NOW OWNS AND MANAGES 1113 UNITS IN 137 PROPERTIES THAT INCLUDE RESIDENTIAL AND COMMERCIAL BUILDINGS AND VACANT LOTS IT HAS SPENT 25 MILLION TO BUY PROPERTY 3 MILLION ON HOUSING REHABILITATION AND 26 MILLION ON CAMPUS TOWN AMONG RESIDENTS WHO HAD TO BE RELOCATED BECAUSE OF REDEVELOPMENT 74 REMAIN IN THE COMMUNITY CAMPUS TOWN FINANCING WAS AIDED BY A 417 MILLION LOWINTEREST LOAN FROM THE CITY OF MILWAUKEE TIED TO FUTURE PROPERTYTAX REVENUE FROM THE PROJECT THE CITY ALSO HAS AGREED TO SPEND 750000 TO IMPROVE THE AREA'S STREETS THIS PROJECT IS UPLIFTING NOT JUST FOR THIS NEIGHBORHOOD BUT FOR OTHER PARTS OF THE CITY SAYS MAYOR JOHN NORQUIST I SEE IT AS A MODEL SO DO OTHER URBAN UNIVERSITIES THAT HAVE COME TO TAKE A LOOK INCLUDING LOYOLA IN CHICAGO THE UNIVERSITY OF CINCINNATI ILLINOIS INSTITUTE OF TECHNOLOGY AND THE UNIVERSITY OF SOUTHERN CALIFORNIA I THINK THERE IS A REAL NEED TO REACH OUT TO DEVELOP THOSE SORTS OF BRIDGES BETWEEN THE COMMUNITIES THAT SURROUND US SAYS MARSHALL GOODMAN AN ASSOCIATE DEAN AT THE UNIVERSITY OF CINCINNATI AT MARQUETTE THE OUTREACH HAS GONE BEYOND REBUILDING THE CITYSCAPE SOME MARQUETTE STUDENTS TUTOR NEIGHBORHOOD CHILDREN IN ADDITION THE UNIVERSITY HAS RECEIVED 650000 FROM THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR PROGRAMS IN CRIME PREVENTION AND LANDLORDTENANT RELATIONS THE BATTLE AGAINST CRIME IN THE COMMUNITY ISN'T WON BUT IT IS MAKING SIGNIFICANT GAINS MAYOR NORQUIST SET UP A POLICE MINIPRECINCT IN THE AREA STAFFED WITH 50 OFFICERS THE POLICE CRACKED DOWN ON AN OPEN DRUG MARKET ALONG SEVERAL BLOCKS SAYS LT ROBERT SURDYK SOME OF MY OFFICERS EVEN WROTE SUSPECTED DEALERS PEDESTRIAN TICKETS FOR OBSTRUCTING TRAFFIC THEY'D STAND OUT IN THE STREET AND SELL TO PASSING CARS HE ADDS THAT IN THE FIRST HALF OF 1993 MORE THAN 200 PROSTITUTION CITATIONS WERE ISSUED THROUGH LAST SEPTEMBER MAJOR CRIME IN AVENUES WEST WAS DOWN 34 FROM A YEAR BEFORE LT SURDYK SAYS MANY COMPLAINTS NOW HAVE TO DO WITH QUALITY OF LIFE ISSUES SUCH AS LOUD RADIOS ILLEGAL PARKING AND LOITERING SAID VIRGINIA JOHNSON RECENTLY I HAVEN'T HEARD A GUNSHOT IN TWO WEEKS 9402010073 940201 ENTERPRISE GOVERNMENT WATCH OSHA TO MIX A LITTLE MERCY WITH LATEST CRACKDOWN BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL OSHA VOWS A CRACKDOWN BUT PLEDGES LENIENCY FOR SMALL BUSINESSES JOE DEAR WHO BECAME DIRECTOR OF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION IN NOVEMBER SAYS THE AGENCY IS PREPARING AN INITIATIVE TO INCREASE ENFORCEMENT THROUGH BETTER TARGETING OF THE MOSTHAZARDOUS WORKPLACES IN THE PAST OSHA MADE INSPECTIONS MOSTLY IN RESPONSE TO COMPLAINTS UNDER THE NEW POLICY IT WILL BE SINGLING OUT FOR SURVEILLANCE WORK SITES THAT ARE MOST EXPOSED TO THREE RISKS CONFINEDSPACE PROBLEMS LEAD IN CONSTRUCTION MATERIALS AND TUBERCULOSIS MR DEAR SAYS BUSINESSES PARTICULARLY AFFECTED INCLUDE HEALTHCARE FACILITIES NURSING HOMES CONSTRUCTION COMPANIES AND MANUFACTURERS WHOSE PLANTS CONTAIN POTENTIALLY DANGEROUS CHEMICALS HE ADDS MANY OF THESE ENTERPRISES ARE SMALL THIS WILL SEND A CLEAR MESSAGE TO EMPLOYERS ON THE LOW ROAD THAT THE COST OF NONCOMPLIANCE WILL GO UP HE SAYS BUT MR DEAR ALSO OFFERS A BREAK TO OWNERS OF SMALL HIGHHAZARD BUSINESSES THEY WON'T BE PUNISHED FOR VIOLATIONS IF THEY SEEK OSHA'S HELP IN CORRECTING THE PROBLEMS IF YOU ASK FOR HELP AND ABATE BY AN AGREED DATE THERE'S NO PENALTY HE SAYS PLEAD POVERTY NOT IGNORANCE BUREAUCRATS TELL A BOYCOTTLAW VIOLATOR GOTKO INTERNATIONAL INC A HOUSTON MAKER OF OILFIELD EQUIPMENT WITH 25 MILLION IN SALES LAST YEAR DOES 99 OF ITS BUSINESS OVERSEAS SO SHORTLY AFTER KENNETH PENSKE TOOK OVER AS COMPANY PRESIDENT IN 1984 HE WROTE TO THE LOCAL DEPARTMENT OF COMMERCE OFFICE ASKING FOR AS MUCH INFORMATION AS POSSIBLE ABOUT WHAT HE SHOULD DO TO COMPLY WITH ALL US LAWS MR PENSKE SAYS THE LETTER AND TWO FOLLOWUP REQUESTS ALL WENT UNANSWERED A CLAIM THE DEPARTMENT DOESN'T CONTEST BUT AS HE WAS TO DISCOVER IGNORANCE OF THE LAW IS NO EXCUSE MR PENSKE SAYS HE LATER SIGNED A STATEMENT REQUESTED BY SYRIA THAT HE OBSERVED THE RULES OF ITS BOYCOTT OF ISRAEL I NEVER SOLD ANYTHING TO ISRAEL BECAUSE ISRAEL DOESN'T DO ANY OIL DRILLING HE SAYS I HAD NO IDEA I WAS VIOLATING US LAW WHICH FORBIDS AMERICAN COMPANIES FROM TAKING PART IN THE ARAB BOYCOTT OF THE JEWISH STATE MOREOVER HE SAYS THE STATEMENT WAS ON A CHECKLIST OF ITEMS FOR ESTABLISHING A LETTER OF CREDIT A MATTER THAT WAS BEING HANDLED BY A LARGE US BANK AS A SMALL MANUFACTURER MR PENSKE SAYS HE ASSUMED THE BANK WOULD ALERT HIM OF ANY POTENTIAL PROBLEM IN 1988 HE SAYS HE AGAIN SOUGHT INFORMATION FROM THE COMMERCE DEPARTMENTAGAIN TO NO AVAIL THREE YEARS LATER HE SAYS HE BECAME AWARE OF HIS UNWITTING PARTICIPATION IN THE BOYCOTT HE SAYS HE IMMEDIATELY INFORMED THE INTERNAL REVENUE SERVICE THE AGENCY THAT HIS LAWYER SUGGESTED SHOULD BE CONTACTED AND SENT A LETTER OF RETRACTION TO SYRIA AS A RESULT OF HIS INITIATIVE HE SAYS THE DEPARTMENT OF COMMERCE AUDITED HIS BOOKS LAST FEBRUARY IT NOTIFIED HIM THAT HE WAS GUILTY OF BOYCOTTLAW VIOLATIONS AND SAID IT PLANNED TO FINE HIM 190000 IT LATER REDUCED THAT AMOUNT TO 90000 CITING HIS COMPLAINTS ABOUT ITS UNRESPONSIVENESS AND OTHER MITIGATING FACTORS MR PENSKE SAYS HE HAS OFFERED TO PAY 5000 BUT ONLY IF THE COMMERCE DEPARTMENT ADMITS ITS NEGLIGENCE THE AGENCY WON'T COMMENT BUT IN A LETTER TO SEN PHIL GRAMM R TEXAS IT INDICATED THAT THE PENALTY COULD BE SUSPENDED IF GOTKO CAN SHOW THE COST WOULD CAUSE IT SEVERE FINANCIAL HARDSHIP THAT SHOULD BE EASY MR PENSKE SAYS HIS COMPANY WHICH WAS NAMED THE HOUSTON AREA'S SMALLBUSINESS EXPORTER OF THE YEAR BY THE SMALL BUSINESS ADMINISTRATION LAST MARCH HAD 1993 LOSSES IN THE TENS OF THOUSANDS OF DOLLARS AND IS SADDLED WITH HUNDREDS OF THOUSANDS OF DOLLARS OF DEBT HOWEVER THE DISPUTE ENDS MR PENSKE WONDERS WHY THE US SOUGHT TO FINE HIS BUSINESS A SUM EQUAL TO NEARLY 8 OF ANNUAL REVENUE WHILE FINING A UNIT OF AMERICAN EXPRESS CO ONLY 103000 LAST YEAR FOR THE SAME ALLEGED OFFENSE A BAKERY FIGHTS VERMONT'S BID TO TAKE A BIGGER TAX BITE OUT OF ITS BAGELS THE BURLINGTON BAGEL BAKERY'S SHOPS ALWAYS CHARGED CUSTOMERS THE STATE'S 7 MEALS TAX ON BAGELS SOLD FOR IMMEDIATE CONSUMPTION BUT NEVER ON LOOSE BAGELS TAKEN HOME IN BAGS TO BE EATEN LATER AFTER ALL COOWNER ANDY GOLBERT SAYS BAGELS SOLD IN GROCERY STORES AND DELICATESSENS AREN'T TAXED SO WHEN THE VERMONT TAX DEPARTMENT SENT HIM A 50000 BILL LAST SUMMER FOR THREE YEARS IN BACK TAXES ON TAKEOUT BAGELS HE FOUND THE PENALTY HARD TO SWALLOW THE DEPARTMENT LATER REDUCED THE SUM TO 19000 COVERING ONLY SALES OF FIVE BAGELS OR FEWER HE SAYS BUT MR GOLBERT MAINTAINS THAT HE DOESN'T OWE THE STATE A PENNY LAST WEEK HE TESTIFIED AT HEARINGS BY THE STATE HOUSE WAYS AND MEANS COMMITTEE AIMED AT CLARIFYING THE DEFINITION OF NONTAXABLE BULK FOODS I TOLD THEM I'D LIKE TO MEET THE GUY WHO EATS FIVE BAGELS FOR LUNCH HE SAYS THE STATE TAX DEPARTMENT WON'T COMMENT ON MR GOLBERT'S CASE BUT AN OFFICIAL SAYS THE LEGISLATURE IS CONSIDERING REDUCING THE TAKEOUT THRESHOLD TO FOUR FROM SIX BAGELS HE ADDS THAT THE IMPLEMENTATION OF ANY LAW MEANT TO TAX SNACKS AND GROCERIES SEPARATELY IS ALWAYS GOING TO BE AWKWARD THE BAGEL BROUHAHA IS PART OF A NATIONAL DEBATE OVER WHETHER THE SAME FOODS TAKEN OUT OF RESTAURANTS AND GROCERY STORES SHOULD BE TAXED IDENTICALLY SAYS LINDA WAY MANAGER OF STATE LEGISLATIVE AFFAIRS AT THE NATIONAL RESTAURANT ASSOCIATION THE RESTAURANT COMMUNITY HAS LONG ARGUED THERE'S AN UNEVEN PLAYING FIELD SHE ADDS ENVIRONMENTAL RULES RATE AS THE MOST ONEROUS A NEW SURVEY SHOWS IN A POLL BY CONSULTING FIRM GRANT THORNTON OF 253 SMALL AND MEDIUMSIZED MANUFACTURING COMPANIES 37 SAID ENVIRONMENTAL REGULATIONS WERE THE MOST BURDENSOME THAT WAS MORE THAN DOUBLE THE 16 OF RESPONDENTS THAT CITED TAX REGULATIONS AND THE 15 THAT NAMED WORKPLACE RULES MICHAEL CANTWELL THE GRANT THORNTON'S NATIONAL DIRECTOR FOR MANUFACTURING SAYS THE FAST GROWTH OF ENVIRONMENTAL REGULATIONS AT ALL LEVELS OF GOVERNMENT AND THEIR OFTEN ARBITRARY ENFORCEMENT CREATE THE PROBLEM AS ENVIRONMENTAL LAW GETS MORE COMPLEX IT PLACES AN ENORMOUS BURDEN ON BUSINESSES JUST TO KEEP ABREAST OF IT MUCH LESS INTERPRET IT AND FILL OUT ALL THE COMPLIANCE REPORTS HE SAYS MOREOVER HE ADDS SMALL MANUFACTURERS SENSE THAT MANY PEOPLE AT ENVIRONMENTAL AGENCIES HAVE AN ANTIBUSINESS BIAS 9402010071 940201 TECHNOLOGY & HEALTH AT&T'S EO TO FOCUS ON CELLULAR PHONES AS MARKET FOR DATA DEVICES PROVES SLOW BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL EO INC THE TINY AT&T COMPANY THAT AIMED TO PUT LITTLE DATA COMMUNICATORS IN THE HANDS OF MILLIONS HAS GONE BACK TO THE DRAWING BOARD AFTER SELLING FEWER THAN 10000 OF ITS DEVICES THE COMPANY WILL SOON ANNOUNCE A REFOCUS AND NEW INVESTMENT STRATEGY THAT POSITIONS ITS PRODUCTS AS SMART CELLULAR TELEPHONES ACCORDING TO OFFICIALS AT AMERICAN TELEPHONE & TELEGRAPH CO AND EO SANTA CLARA CALIF AN AT&T SPOKESMAN SAID THE STRATEGY CHANGE COULD INCLUDE NEW EQUITY PARTNERS IN THE COMPANY ALTHOUGH AT&T INTENDS TO REMAIN THE MAJORITY HOLDER EO'S DECISION TO POSITION ITSELF AS A MAKER OF INTELLIGENT PHONES UNDERSCORES THE PROBLEMS THAT MANUFACTURERS INCLUDING AT&T APPLE COMPUTER INC AND OTHERS ARE HAVING SELLING THE PUBLIC ON HANDHELD DATA COMMUNICATORS JUST LAST WEEK COMPAQ COMPUTER CORP DELAYED ITS OWN PROGRAM TO BRING DATA COMMUNICATORS TO MARKET BECAUSE OF CONCERNS OVER THE QUALITY OF PENBASED SOFTWARE THAT ALLOWS SUCH DEVICES TO CONVERT HANDWRITING TO DIGITAL FORM AT STAKE IS A MARKET WITH A POTENTIAL VALUE OF BILLIONS OF DOLLARS AS PEOPLE FLOCKING TO WIRELESS DEVICES SUCH AS CELLULAR PHONES LOOK FOR WAYS TO SEND A MESSAGE OVER THE SAME NETWORKS BUT MANUFACTURERS ARE STILL HUNTING FOR THE RIGHT DESIGN FEATURES AND PRICING APPLE'S NEWTON WHICH SELLS FOR ABOUT 1000 WITH COMMUNICATIONS ATTACHMENTS GOT OFF TO A FAST START BUT HAS SINCE DWINDLED TO ABOUT 7500 UNITS A MONTH PRIMARILY BECAUSE SOME OF ITS FEATURES DIDN'T WORK TOO WELL EVEN SO NEWTON SALES WERE A LOT COMPARED TO THOSE OF EO INDUSTRY EXPERTS ASSERT THAT EO HAS SOLD ABOUT 8000 OF ITS MORE EXPENSIVE 2500 ETCHASKETCHSIZED MODEL 440 SINCE LAST SPRING DECLINING TO COMMENT ON EO'S SALES NUMBERS WINK GRELIS EO'S DIRECTOR OF CUSTOMER MARKETING SAID WE LEARNED A LOT FROM OUR 440 PRODUCT A TABLETDEVICETYPE OF PRODUCT IS NOT SOMETHING PEOPLE RELATE TO AS MUCH AS COMMUNICATIONS NOW EO WILL REVAMP ITS LINE WITH A NEW FLIPOPEN MODEL THAT HAS A LITTLE COMPUTER SCREEN AND A PHONE BUILT INTO IT ACCORDING TO INDIVIDUALS WHO HAVE SEEN PROTOTYPES AN AT&T SPOKESMAN SAYS THE PRICING WILL CHANGE DRASTICALLY AS WELL THE BALLPARK WILL BE 1000 TO 1500 RANGE HE SAID IN EO'S AND AT&T'S CASE REFOCUSING THE SALES PITCH WOULD APPEAR TO BE A MAJOR DEFEAT IN THEIR INITIAL STRATEGY TO SELL DEVICES THAT ALLOW CONSUMERS TO COMMUNICATE BY SENDING EACH OTHER WRITTEN MESSAGES AT&T'S MULTIMEDIA CHIEF ROBERT M KAVNER ONCE TOUTED DATA COMMUNICATORS AS THE MEMO SENDERS OF THE FUTURE ONLY TO BE TRUMPED BY FORMER APPLE CHAIRMAN JOHN SCULLEY'S HYPEFILLED LAUNCH OF THE APPLE NEWTON AS THE PERSONAL DIGITAL ASSISTANT OF THE FUTURE NOW AT&T'S EO WILL HAVE TO SELL ITS PRODUCTS AS PHONES AFTER ALL WITH SOME COMPUTER SMARTS THROWN IN THE EO PROMOTION FOLLOWED MR KAVNER'S HIGHPROFILE PUSH OF VIDEOPHONES AT AT&T BUT THE VIDEOPHONE HAS BEEN A CRASHING FAILURE WITH HARDLY ANY SELLING MCI COMMUNICATIONS CORP WHICH ANNOUNCED ITS OWN VIDEOPHONE MADE BY A UK MANUFACTURER TO RIVAL AT&T'S NEVER BROUGHT ITS PHONE TO MARKET IN THE US 9402010070 940201 YOUR MONEY MATTERS PAINEWEBBER PICKS TOPPED A GOOD YEAR FOR WALL STREET BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE THIRD YEAR IN A ROW MOST BIG BROKERAGE HOUSES CAN BOAST OF THEIR WINNING STOCK PICKS STOCKS ON THE OFFICIAL RECOMMENDED LISTS OF 16 LARGE BROKERAGE HOUSES ACHIEVED AN AVERAGE TOTAL RETURN INCLUDING PRICE CHANGE PLUS DIVIDENDS OF 196 LAST YEAR ACCORDING TO A CONTINUING STUDY BY THIS NEWSPAPER AND ZACKS INVESTMENT RESEARCH INC OF CHICAGO THREE QUARTERS OF THE RECOMMENDED LISTS OUTPERFORMED THE 101 RETURN ON THE STANDARD & POOR'S 500 INDEX A STANDARD STOCKMARKET GAUGE THE FIRMS EVEN BESTED THE IMPRESSIVE GAINS OF SMALL STOCKS LAST YEAR NINE OF THE 16 RECOMMENDED LISTS BEAT THE 146 RETURN OF THE WILSHIRE 4500 INDEX WHICH NOW COMPRISES 5856 STOCKS OR JUST ABOUT EVERYTHING OUTSIDE THE S&P 500 PAINEWEBBER INC'S PERFORMANCE PORTFOLIO LED THE COMPETITION WITH AN ESTIMATED 391 RETURN EDGING OUT RAYMOND JAMES & ASSOCIATES' FOCUS LIST WHICH ROSE 342 RAYMOND JAMES REMAINS THE FIVEYEAR LEADER THANKS LARGELY TO BIG SUCCESSES IN 1991 AND 1992 THE FIRM ALSO SCORED THE BIGGEST GAIN IN THE 1993 FOURTH QUARTER LAST YEAR'S TRIUMPHS CONTRAST WITH THE BROKERAGE HOUSES' FLOUNDERING PERFORMANCE IN 1989 AND 1990 WHEN MOST LAGGED BEHIND THE MARKET AVERAGES RICK CHRABASZEWSKI AN ANALYST AT ZACKS SAYS THE BROKERAGE HOUSES TYPICALLY DO BEST WHEN SMALL STOCKS ARE HOT AND WORST IN AN OVERALL BEAR MARKET HERE IS A RUNDOWN ON FIRMS THAT DID ESPECIALLY WELL OR POORLY IN THE STUDY PAINEWEBBER ROARING GAINS IN STOCKS LIKE LDDS COMMUNICATIONS INC UP 150 PHYSICIAN CORP OF AMERICA 71 AND FISHERPRICE INC 70 POWERED PAINEWEBBER TO THE TOP OF THE RANKINGS FOR 1993 CUSTOMERS CAN ALSO THANK PAINEWEBBER FOR POINTING THEM TOWARD GAINS OF MORE THAN 40 IN ADAPTEC INC BAROID CORP AND CYGNUS THERAPEUTIC SYSTEMS INC THE NEW YORK FIRM A UNIT OF PAINEWEBBER GROUP INC PLACED SECOND IN THE FIVEYEAR RANKINGS AND THIRD IN THE LATEST QUARTER OF THE 54 STOCKS FEATURED IN ITS PERFORMANCE PORTFOLIO AT SOME POINT DURING THE YEAR 38 ROSE AND ONLY 16 DECLINED THE STOCKS ARE ONLY TRACKED FOR THE TIME THEY ACTUALLY SPENT ON THE LIST THE INFORMATIONHIGHWAY THEME IS ONE THAT WE WERE ON WELL OVER A YEAR AGO SAYS JAMES VOYTKO PAINEWEBBER'S DIRECTOR OF RESEARCH NOW EVERYBODY IS WORKING IT THE FIRM'S FAVORITE VEHICLES ON THE INFORMATION HIGHWAY INCLUDE LDDS TELEFONOS DE MEXICO AND U S WEST INC PAINEWEBBER ALSO LIKES TAKEOVER OR RESTRUCTURING CANDIDATES SUCH AS ICO INC AN OILSERVICE COMPANY AND IT FAVORS STOCKS SUCH AS IMPERIAL CHEMICAL INDUSTRIES LTD THAT WOULD BENEFIT FROM A EUROPEAN ECONOMIC RECOVERY RAYMOND JAMES THE ST PETERSBURG FLA BROKERAGE HOUSE MADE ITS NAME WITH SHREWD PICKS OF SMALL STOCKS IN NICHES SUCH AS GAMBLING AND HEALTH CARE IT HOLDS A COMMANDING LEAD IN THE LONGTERM STANDINGS EVEN THOUGH ITS PICKS SUFFERED MORE THAN THOSE OF ANY OTHER FIRM IN THE CRASH OF 1987 AND THE MINICRASH OF 1989 REBOUNDING HEALTHCARE STOCKS HELPED SPUR THE FIRM'S HANDSOME 113 GAIN IN THE 1993 FOURTH QUARTER WE HAD SEEN THE SHAPE OF THE MONSTER THAT WAS HEALTHCARE REFORM AND CONCLUDED THAT IT WOULDN'T CHEW UP THE ENTIRE INDUSTRY SAYS RESEARCH DIRECTOR DAVID HENWOOD PHARMACEUTICAL STOCKS AND HOSPITAL STOCKS DON'T EXCITE US FOR THE NEXT THREE TO FIVE YEARS MR HENWOOD ADDS BUT THE FIRM STILL RECOMMENDS NURSINGHOME STOCKS SUCH AS BEVERLY ENTERPRISES AND LIVING CENTERS OF AMERICA INC BECAUSE IT FIGURES THAT SUCH INSTITUTIONS WILL INCREASINGLY SERVE PATIENTS FORMERLY CARED FOR IN HIGHCOST HOSPITALS THE RAYMOND JAMES FINANCIAL INC UNIT ALSO LIKES MEDICALDEVICE MAKERS SUCH AS CR BARD INC MEDTRONIC INC AND CORDIS CORP KEMPER THE CHICAGO FIRM CAPTURED THIRD PLACE IN THE 1993 STOCKPICKING STANDINGS BY PLAYING GREAT DEFENSE WHILE THE KEMPER CORP UNIT HAD FEW BIG WINNERS IT AVOIDED LOSERS ONLY FOUR STOCKS ON KEMPER'S EQUITY OPPORTUNITY LIST DECLINED AS MUCH AS 10 AND 77 OF THE 48 STOCKS ON THE LIST ROSE KENT LILLICK A MEMBER OF KEMPER'S INVESTMENT POLICY COMMITTEE SAYS THE FIRM WILL NORMALLY REMOVE A STOCK FROM ITS LIST IF THE STOCK FALLS 15 WE'RE NOT SWINGING FOR THE FENCES HE SAYS WE'RE JUST TRYING TO KEEP THE BALL IN PLAY AMONG KEMPER'S CURRENT FAVORITES ARE BANC ONE CORP WHICH MR LILLICK TERMS VERY INEXPENSIVE BASED ON HISTORICAL PARAMETERS PAYLESS CASHWAYS INC A RETAILER ON THE REBOUND AFTER BEING HURT BY THE FLOODING IN THE MIDWEST LAST SUMMER AND WALGREEN CO WHICH KEMPER THINKS IS CAPABLE OF 15 ANNUAL GROWTH IN PROFIT DEAN WITTER DEAN WITTER REYNOLDS INC A UNIT OF DEAN WITTER DISCOVER & CO IS HANGING ONTO THIRD PLACE IN THE FIVEYEAR RANKINGS BUT SMITH BARNEY SHEARSON A UNIT OF TRAVELERS INC AND MERRILL LYNCH & CO ARE BREATHING DOWN ITS NECK LIKE RAYMOND JAMES DEAN WITTER FAVORS CERTAIN BEATENUP HEALTHCARE STOCKS RESEARCH DIRECTOR MANNY KORMAN SAYS THE FIRM ESPECIALLY LIKES COLUMBIA HEALTHCARE CORP AND WELLPOINT HEALTH NETWORKS INC HE IS ALSO KEEN ON FLUOR CORP A WORLDWIDE ENGINEERING AND CONSTRUCTION COMPANY WITH STRONG BUSINESS PROSPECTS IN ASIA AND LATIN AMERICA AND ON TELEFONOS DE MEXICO WHICH HE THINKS WILL PROSPER AS MEXICO CONTINUES TO INDUSTRIALIZE GOLDMAN SACHS THE US PRIORITY LIST AT GOLDMAN SACHS & CO JUMPED 73 IN THE FOURTH QUARTER THE SECONDBEST SHOWING OF ANY FIRM GOLDMAN'S BEST PICK WAS WILLIAMS SONOMA INC A RETAILER OF UPSCALE COOKWARE WHICH SOARED 66 IN THE QUARTER AND 109 FOR THE YEAR RESEARCH DIRECTOR WILLIAM KEALY SAYS THE STOCK COULD CLIMB FURTHER THANKS PARTLY TO RENEWED VIGOR IN THE ECONOMY FOR THE SAME REASON THE NEW YORK FIRM REMAINS SWEET ON CYCLICALS SUCH AS ALASKA AIR GROUP INC BIRMINGHAM STEEL CORP CENTEX CORP GEORGIA PACIFIC CORP OWENSILLINOIS INC ROADWAY SERVICES INC AND VARITY CORP EDWARD D JONES EDWARD D JONES & CO A ST LOUIS FIRM JUST ADDED TO THE STUDY FINISHED LAST IN 1993 WITH AN ESTIMATED RETURN OF 4 THE FIRM FAVORED BIG HIGHQUALITY GROWTH STOCKS WHICH FELL OUT OF FASHION LAST YEAR SAYS RESEARCH DIRECTOR RAY ROBBINS EVEN SO THE FIRM IS STICKING WITH ITS BLUECHIP GROWTH PICKS INCLUDING MCDONALD'S CORP HERSHEY FOODS CORP PEPSICO INC AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WE THINK THESE STOCKS ARE CHEAP AND ATTRACTIVE MR ROBBINS SAYS WE'RE GOING TO BE MARATHON RUNNERSWE'RE NOT SPRINTERS WE THINK THE MARATHON RUNNERS DO PRETTY WELL OVER TIME LEHMAN BROTHERS OF THE 10 FIRMS WITH FIVEYEAR RECORDS IN THE STUDY LEHMAN BROTHERS INC OF NEW YORK RANKED LAST FOR 1993 MEANWHILE THE SOONTOBEINDEPENDENT UNIT OF AMERICAN EXPRESS CO PLACED 14TH OUT OF 16 RESEARCH DIRECTOR FRED FRAENKEL SAYS LEHMAN'S RECOMMENDED LIST TENDS TO BE SOMEWHAT DEFENSIVE IN NATURE TRAILING IN UP MARKETS BUT OUTPERFORMING OTHERS IN DOWN MARKETS CS FIRST BOSTON FOR THE FOURTH QUARTER CS FIRST BOSTON CORP A UNIT OF CS HOLDING OF SWITZERLAND TRAILED THE PACK WITH A LOSS OF 01 THE NEW YORK FIRM HAD NO MAJOR DISASTERS BUT PICKED MORE LOSERS THAN WINNERS AMONG THE DUDS WERE HARCOURT GENERAL INC UNION TEXAS PETROLEUM HOLDINGS INC ADVANCED MICRO DEVICES INC AND LIMITED INC FOR THE YEAR HOWEVER CS FIRST BOSTON RANKED TENTH AND ITS RETURN OF 122 BEAT THE S&P THE WALL STREET JOURNALZACKS STUDY ESTIMATES HOW AN INVESTOR WOULD DO BY BUYING THE MOSTFAVORED STOCKS FROM EACH OF 16 LEADING US BROKERAGE FIRMS THE STUDY ASSUMES THE INVESTOR BUYS EVERY STOCK ON A FIRM'S RECOMMENDED LIST AND AVOIDS OR SELLS ALL OTHER STOCKS RESULTS INCLUDE DIVIDENDS AS WELL AS CAPITAL GAINS OR LOSSES A 1 TRADING COST IS ASSESSED WHEN A STOCK IS ADDED TO OR DELETED FROM A FIRM'S LIST GOLDMAN SACHS IS JUDGED BY ITS US PRIORITY LIST EDWARD D JONES BY ITS BEST BUYS KEMPER BY ITS EQUITY OPPORTUNITY LIST KIDDER PEABODY BY ITS CORE MODEL PORTFOLIO AND SMALLCAP MODEL PORTFOLIO MERRILL LYNCH BY ITS FOCUS ONE STOCKS MORGAN STANLEY BY ITS US MODEL PORTFOLIO PAINEWEBBER BY ITS PERFORMANCE PORTFOLIO PRUDENTIAL BY ITS LIST OF SINGLE BEST IDEAS AND SMITH BARNEY BY ITS PRIORITY EQUITIES RETAIL RECOMMENDED LIST BEAR STEARNS AG EDWARDS FIRST BOSTON AND RAYMOND JAMES ARE JUDGED BY THEIR FOCUS LISTS DEAN WITTER LEHMAN BROTHERS AND SALOMON BROTHERS BY THEIR RECOMMENDED LISTS 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 9402010069 940201 CREDIT MARKETS GREENSPAN'S COMMENTS ON INTEREST RATES APPEAR TO HAVE LITTLE IMPACT AS MOST BOND PRICES FALL BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK CONGRESSIONAL TESTIMONY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN OFTEN TRIGGERS BIG WAVES IN THE BOND MARKET BUT NOT YESTERDAY ANOTHER WARNING BY THE FED CHIEF THAT SHORTTERM INTEREST RATES WILL AT SOME POINT MOVE HIGHER CAUSED ONLY SMALL RIPPLES YESTERDAY WITH MR GREENSPAN FAILING TO PROVIDE BOND PRICES WITH A DOMINANT DIRECTION YESTERDAY SPECULATIVE AND TECHNICAL TRADERS TOOK OVER AT THE END OF TRADING PRICES OF MOST NOTES AND BONDS POSTED MODERATE LOSSES WITH SHORTTERM ISSUES LEADING THE DECLINES THE BENCHMARK 30YEAR TREASURY BOND ENDED DOWN MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 100 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 623 FROM 621 ON FRIDAY MEANWHILE THE PROVINCE OF QUEBEC SURPRISED MANY IN THE CORPORATEBOND MARKET BY SELLING 1 BILLION OF 30YEAR YANKEE BONDS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US MR GREENSPAN TESTIFYING BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS SAID THAT THE ELEMENTS OF ECONOMIC EXPANSION ARE INCREASINGLY WELL ENTRENCHED WHILE INFLATION HAS REMAINED CONTAINED HE WENT ON TO WARN THAT DESPITE CONTINUED MODERATE INFLATION MONETARY POLICY MUST NOT OVERSTAY ACCOMMODATION ADDING THAT REAL SHORTTERM INTEREST RATES ARE ABNORMALLY LOW AND UNLESS THE ECONOMY WEAKENS SEVERELY IN THE NEAR TERM WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE IN ADDITION MR GREENSPAN INDICATED THE FED MUST ACT BEFORE INFLATION PRESSURES BECOME A PROBLEM ACCORDING TO ANALYSTS THE FED CHAIRMAN ONCE AGAIN MADE IT CLEAR THE NEXT MOVE WILL BE TO RAISE INTEREST RATES THEY ADD HOWEVER THE TIMING OF ANY MOVE IS STILL UP IN THE AIR INVESTORS MEANWHILE CONTINUED TO BET THAT THERE IS LITTLE REASON TO FEAR A RISE IN SHORTTERM RATES BEFORE LATE MARCH AT THE EARLIEST FRANK RICCARDI A SENIOR VICE PRESIDENT AT SOCIETY ASSET MANAGEMENT SAID MR GREENSPAN'S REMARKS MERELY REINFORCED WHAT THE MARKET HAD ALREADY WIDELY BELIEVED HE WAS JUST CONFIRMING WHAT WE'VE HEARD ELSEWHERE FOR THE LAST THREE MONTHS MR RICCARDI SAID WE HAVEN'T CHANGED ANYTHING BASED ON THIS TRADERS ALSO WERE RELUCTANT TO GET TOO EXCITED BY MR GREENSPAN'S WARNINGS THE MARKET HAS GOTTEN BURNED TOO MANY TIMES BETTING ON A FED TIGHTENING THEY SAID YOU'RE GOING TO HAVE TO SEE THE WHITES OF THEIR EYES SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA THEN YOU'LL GET THE APPROPRIATE REACTION BUT ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS SAID ELEMENTS OF GREENSPAN'S TESTIMONY RAISED THE RISK OF AN EARLIERTHANEXPECTED TIGHTENING IN PARTICULAR MR GIORDANO POINTED TO STATEMENTS INDICATING GREATER CONFIDENCE IN THE STRENGTH OF THE ECONOMY THE PACE OF FOURTHQUARTER GROWTH ALTHOUGH NOT LIKELY TO BE TOTALLY SUSTAINED COULD CARRY ON LONGER INTO THE NEW YEAR THAN HAS GENERALLY BEEN ASSUMED BOTH AT THE FED AND BY THE MARKET MR GIORDANO SAID AS A RESULT THE RISK OF AN EARLIER TIGHTENING HAS GONE UP PRICES OF TREASURY NOTES AND BONDS INITIALLY DID RESPOND TO MR GREENSPAN'S COMMENTS ISSUES MATURING IN TWO YEARS AND UNDER WHICH WOULD BE MOST AFFECTED BY A FED TIGHTENING SANK THROUGH MIDDAY AMONG LONGER ISSUES HOWEVER TRADERS WERE ENCOURAGED BY MR GREENSPAN'S TOUGH TALK ABOUT INFLATION AND PUSHED PRICES HIGHER THERE WAS LITTLE FOLLOWTHROUGH BUYING OR SELLING HOWEVER AS A RESULT SPECULATIVE AND TECHNICAL TRADERS TOOK OVER AND SENT PRICES GRADUALLY LOWER DURING THE AFTERNOON THE MARKET JUST FADED WITH THE SHORT END GETTING THE BRUNT OF THE SELLING FROM THE STREET SAID THE DAIWA TRADER THE DAY'S ECONOMIC NEWS HAD LITTLE IMPACT ON TRADING THE COMMERCE DEPARTMENT REPORTED THAT PERSONAL INCOME ROSE 06 DURING DECEMBER WHILE PERSONAL SPENDING ROSE 05 BOTH INCREASES WERE IN LINE WITH MARKET EXPECTATIONS THE PURCHASING MANAGERS' ASSOCIATION OF CHICAGO REPORTED THAT ITS INDEX OF LOCAL BUSINESS ACTIVITY EDGED DOWN TO 596 IN JANUARY FROM 622 IN DECEMBER A READING ABOVE 50 ON THE CHICAGO PURCHASER'S INDEX REFLECTS EXPANDING MANUFACTURING ACTIVITY IN THE AREA THE MARKET NOW TURNS ITS ATTENTION TO THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT SCHEDULED TO BE RELEASED TODAY MOST ANALYSTS BELIEVE THE ASSOCIATION'S INDEX WILL SLIP FROM THE 571 READING IT POSTED IN DECEMBER TRADERS ARE ALSO ALREADY 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 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB 3 THE 13WEEK BILLS MATURE MAY 5 1994 AND THE 26WEEK BILLS MATURE AUG 4 1994 CANADIAN ISSUERS CONTINUED TO DOMINATE THE CORPORATEBOND MARKET YESTERDAY AS THE PROVINCE OF QUEBEC SOLD 1 BILLION OF NONCALLABLE 30YEAR YANKEE BONDS THE PROVINCE OF QUEBEC SOLD 7125 COUPON BONDS AT 99485 TO YIELD 7167 082 PERCENTAGE POINT ABOVE THE 30YEAR US TREASURY BOND THE BONDS WERE SOLD THROUGH LEAD MANAGER MERRILL LYNCH PROCEEDS FROM THE OFFERING WILL BE USED FOR FINANCING QUEBEC'S 199495 BUDGET SOME SYNDICATE OFFICIALS EXPRESSED SURPRISE THAT AN OFFERING THAT LARGE COULD BE BROUGHT TO THE MARKET WITHOUT ADVANCE NOTICE HOWEVER THEY CALLED QUEBEC'S YANKEE OFFERING A SUCCESSFUL TRANSACTION TO MOVE 1 BILLION WORTH OF BONDS AT LUNCHTIME ON A MONDAY WAS PRETTY IMPRESSIVE SAID JAMES B QUIGLEY MANAGING DIRECTOR OF MERRILL LYNCH'S GLOBAL DEBT SYNDICATE REFERRING TO THE FACT THAT DEBT MARKETS OFTEN AREN'T IN HIGH GEAR ON THE FIRST TRADING DAY OF EACH WEEK MR QUIGLEY ATTRIBUTED THE SUCCESS OF THE OFFERING TO THE DEARTH OF LONGTERM NEW ISSUES THIS YEAR MORE THAN 50 ACCOUNTS MAINLY LIFEINSURANCE COMPANIES AND PENSION FUNDS BOUGHT INTO THE OFFERING HE ADDED DESPITE QUEBEC'S DRIVE TOWARD POLITICAL SECESSION AND AN UPCOMING ELECTION IN THE SPRING INTEREST IN QUEBEC'S PAPER CONTINUES TO ATTRACT INVESTORS THE FUNDAMENTALS IN CANADA HAVE BEEN STRONG SAID ONE TRADER OF YANKEE BONDS WE'VE BEEN THROUGH THE POLITICAL WINDMILL SO MANY TIMES THAT IT'S SOMETHING INVESTORS CAN JUSTIFY BECAUSE THERE'S SO MUCH LIQUIDITY HE SAID QUEBEC'S DEBENTURES ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE AND SINGLEAPLUS BY STANDARD & POOR'S OTHER CANADIAN PROVINCES SUCH AS ONTARIO HAVE COME TO MARKET IN RECENT WEEKS BUT LOOKED OUTSIDE THE US MARKET TO SELL DEBT THEY ARE NOT CHOOSING US DOLLAR BONDS THE TRADER SAID OTHER NEW BOND OFFERINGS YESTERDAY CAME FROM BELL ATLANTIC CORP'S BELL ATLANTICNEW JERSEY ANZ BANKING GROUP LTD AND USX CORP TRADING IN THE SECONDARY MARKETS WAS LIGHT PRICES IN THE INVESTMENTGRADE MARKET WERE DOWN SLIGHTLY TRADING IN THE JUNKBOND MARKET WAS EXTREMELY LIGHT WITH PRICES UNCHANGED IN ANOTHER YANKEE OFFERING ANZ BANKING GROUP AN AUSTRALIANBASED BANK SOLD 10YEAR SUBORDINATED NOTES THE 625 COUPON NOTES WERE PRICED AT 99705 TO YIELD 629 AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE NONCALLABLE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS MUNICIPAL BONDS KEPT THEIR STRONG TONE YESTERDAY DESPITE THE TREASURY BOND MARKET'S SLIP AND THEY WERE GENERALLY UNCHANGED TO 1/4 POINT HIGHER AT THE CLOSE WHEN THE DAY'S SLOW DEALINGS FINISHED THE REEDY CREEK IMPROVEMENT DISTRICT FLORIDA 500 BONDS DUE 2019 WERE UNCHANGED AT 96 1/2 YIELDING 523 THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 525 BONDS DUE 2014 WERE 1/4 HIGHER AT 99 5/8 YIELDING 523 MARKET PARTICIPANTS ARE AWAITING PRICING OF SEVERAL LARGE ISSUES THIS WEEK AMONG TRANSACTIONS EXPECTED TODAY A BEAR STEARNS GROUP WILL PRICE THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 665 MILLION GENERALPURPOSE REVENUE BONDS ALSO BIDS WILL BE TAKEN FOR THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 277 MILLION 1994 ELECTRIC PLANT REVENUE AND REVENUE REFUNDING BONDS AND GWINNETT COUNTY SCHOOL DISTRICT GEORGIA 1415 MILLION IMPROVEMENT BONDS THERE WILL BE FAIRLY GOOD DEMAND IF THE BONDS ARE PRICED ATTRACTIVELY SAID A NEW YORK MUNI SPECIALIST LAST WEEK ISSUANCE SLOWED AND MUNI PRICES CLIMBED PRETTY STEADILY ALTHOUGH PRICES HELD UP WELL THIS SESSION MARKET PARTICIPANTS WERE RELUCTANT TO READ A LOT INTO THE DAY'S PRICE ACTION BECAUSE TRADING WAS SO SLOW 9402010068 940201 COMPUTERS FORECASTS ASIDE DEALERS OF PCS THRIVE AGAIN BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL BARELY A YEAR AFTER THEY WERE DISMISSED AS RETAIL'S RELICS OLDLINE COMPUTER DEALERS ARE BACK ONCE WRITTEN OFF AMID DISMAL EARNINGS AND WEAK SHOWINGS FROM THE BIGNAME BRANDS THEY CARRY TRADITIONAL COMPUTER DEALERS FROM SMALL STOREFRONT OPERATIONS TO NATIONAL DISTRIBUTORS WITH ARMIES OF SALESPEOPLE HAVE IN RECENT MONTHS BECOME SOME OF THE BIGGEST WINNERS IN THE PERSONALCOMPUTER WARS ANALYSTS SAY THE REVIVAL COMES DESPITE THE RECENT SUCCESS OF COMPUTER SUPERSTORES WHICH HAVE DOMINATED THE WILDLY GROWING HOMEPC MARKET MANY ANALYSTS PREDICTED THAT THE SUPERSTORES ALONG WITH MAILORDER VENDORS AND GENERALINTEREST RETAILERS SUCH AS DEPARTMENT STORES AND PRICE CLUBS WOULD KILL OFF TRADITIONAL DEALERS AS CONSUMERS OF ALL TYPES FLOCKED TO THE LOWER PRICES OF THE NOFRILLS COMPETITION IN SOME RESPECTS THOSE PREDICTIONS WERE RIGHT HUNDREDS OF INDEPENDENT COMPUTER DEALERS HAVE GONE OUT OF BUSINESS WHILE CERTAIN CHAINS SUCH AS BIZMART INC AND BUSINESSLAND INC HAVE STUMBLED AND THE SUPERSTORE HAS CEMENTED ITS POSITION AS THE FAVORITE SHOPPING DESTINATION AMONG HOMECOMPUTER CONSUMERS AND SMALL BUSINESSES SEEKING A HANDFUL OF NEW MACHINES BUT NONE OF THAT HAS AFFECTED THE THOUSANDS OF LARGE AND MIDSIZE BUSINESSES THAT BUY CRATELOADS OF NEW COMPUTERS TO REPLACE AGING PCS THERE'S A LARGE CORPORATE MARKET AND A LARGE HOME MARKET AND THEY SHOP IN DIFFERENT PLACES SAYS LIZ BUYER AN ANALYST AT T ROWE PRICE IN BALTIMORE AFTER A PERIOD OF SEEKING OUT MANUFACTURERS OF HIGHQUALITY CLONES THE BIGGEST CUSTOMERS ARE ONCE AGAIN BUYING FROM TRADITIONAL DEALERS WHOSE MAINSTAY ARE BLUECHIP MANUFACTURERS SUCH AS INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP VICTORS IN THE RECENT COMPUTER PRICE WARS THESE RETAILERS HAVE BECOME A PROXY FOR THE BRAND NAMES ROBERT ANASTASI AN ANALYST AT SECURITIES FIRM ROBINSON HUMPHREY IN ATLANTA SAYS OF THE DEALERS THE STUFF THESE GUYS ARE SELLING IS SUDDENLY IN DEMAND IN THE THIRD QUARTER FOR EXAMPLE OPERATING PROFIT AT MARKETLEADER INTELLIGENT ELECTRONICS INC BASED IN EXTON PA DOUBLED AND NET INCOME QUINTUPLED AT MICROAGE INC OF TEMPE ARIZ THE DEALERS' RETURN TO PROSPERITY HAS COME FROM MORE THAN SIMPLY PUSHING BOXES OF PCS MOST DEALERS ARE COMPLETELY TRANSFORMING THEIR BUSINESSES AT COMPUTERLAND CORP ONCE THE GRANDDADDY OF COMPUTER RETAILING OFFICIALS HAVE LARGELY ABANDONED THE COMPANY'S STOREFRONT OPERATIONS THE REVAMPING COMPLETE WITH A NAME CHANGE DUE IN THE NEXT MONTH HAS TURNED THE CLOSELY HELD COMPANY INTO A DISTRIBUTOR WITH A TECHNICAL DIVISION THAT DOES A BOOMING BUSINESS INSTALLING PCS AND PC NETWORKS AND TRAINING COMPANIES HOW TO USE THEM EDWARD ANDERSON PRESIDENT OF COMPUCOM SYSTEMS INC WHICH IS RUN SIMILARLY AND HAS SEEN ITS SHARES JUMP 81 OVER THE PAST YEAR SAYS MANY OF THE NATIONAL CHAINS HAVE BORROWED SOME OF THE TACTICS OF MAILORDER VENDORS SUCH AS DELL COMPUTER CORP DELIVERING ADVANCED SYSTEMS TO BIG CORPORATE CUSTOMERS THAT CALL A TOLLFREE TELEPHONE NUMBER THE DEALERS' ADVANTAGE OVER DELL IS THAT THEY CAN OFFER MANY DIFFERENT BRANDS OF PCS AND CAN DELIVER THE TECHNICAL EXPERTISE TO HOOK UP THE SYSTEMS AND MAKE THEM WORK IT'S NOT THAT CUSTOMERS LIKE US BETTER AS PEOPLE MR ANDERSON SAYS IT'S THAT WE MAKE THEIR LIFE EASIER FOR MOST DEALERS THE SERVICE SEGMENT HAS BECOME THEIR FASTEST GROWING NICHE AS COMPANIES TRY TO MOVE FROM LARGE MAINFRAME SYSTEMS TO NETWORKS OF PCS COMPUCOM FOR INSTANCE CAN NOW RUN COMPANIES' COMPUTER NETWORKS VIA A SOPHISTICATED MONITORING SYSTEM AT THE COMPANY'S DALLAS HEADQUARTERS THERE USED TO BE AN UNDERLYING ASSUMPTION THAT TECHNOLOGY ALL OF A SUDDEN BECAME SIMPLE TO USE SAYS ALAN P HALD VICE CHAIRMAN AND COFOUNDER OF MICROAGE IN FACT IT'S COMPLEX AS HELL ANALYSTS SAY THIS TECHNOLOGICAL COMPLEXITY HAS CONTRIBUTED TO PROVING THE DEATHOFTHEDEALER THEORY TO BE DEAD WRONG PARTICULARLY DUBIOUS THEY SAY IS THE ASSERTION THAT BIG COMPANIES WITH THEIR LARGE COMPLEX NETWORKS AND COMPLICATED SOFTWARE WOULD TURN AWAY FROM A LONGTIME DEALER WHO HAS HELPED THEM ALONG SUCH A SHIFT WOULD ALMOST HAVE REQUIRED A PURCHASING MANAGER FROM SAY FORD MOTOR CO TO DRIVE OUT TO A SUPERSTORE LOAD PCS INTO HIS TRUNK AND HAUL THEM INTO A FREIGHT ELEVATOR FOR HIS BUDDIES IN ACCOUNTING THE CONVENTIONAL WISDOM IS JUST STUPID SAYS PETER J SIRIS AN ANALYST AT UBS SECURITIES IN NEW YORK ALAN BUSH PRESIDENT OF COMPUTER CITY SUPERSTORES A UNIT OF TANDY CORP FORT WORTH TEXAS SAYS HE ISN'T WORRIED ABOUT THE RECOVERY OF MANY OF HIS OLDER COMPETITORS WE'RE NOT EXPERIENCING ANY ADDITIONAL PRESSURE AT ALL MR BUSH SAYS WE CONTINUE TO BE ALL SMILES IN FACT MOST ANALYSTS GIVE COMPUTER CITY CREDIT FOR THE RECENT TURNAROUND AT TANDY WHICH PLANS TO BUILD 24 SUPERSTORES THIS YEAR AS PART OF ITS BIGGEST EXPANSION EVER MOST EXPERTS STILL AGREE THAT DEALER GROWTH IS BOUND TO SLOW THE CONSUMER PC RETAIL BUSINESS WILL REMAIN THE PC INDUSTRY'S FASTEST GROWING SEGMENT JUMPING FROM 19 OF TOTAL PC SALES LAST YEAR TO NEARLY 23 BY 1997 BY COMPARISON INTERNATIONAL DATA CORP A COMPUTER MARKET RESEARCH CONCERN IN FRAMINGHAM MASS PREDICTS TRADITIONAL DEALERS WILL ACCOUNT FOR 36 OF THE TOTAL PC PIE BY 1997 DOWN FROM 44 LAST YEAR MOST ANALYSTS SEE THE MARKET BECOMING INCREASINGLY SEGMENTED WITH HOME USERS AND SMALL BUSINESSES TURNING TO THE SUPERSTORES LARGE AND MIDSIZE BUSINESSES CONTINUING TO DEPEND ON THE BIG DEALERS AND THE FORTUNE 500 COMPANIES TEAMING UP WITH MONOLITHS LIKE ELECTRONIC DATA SYSTEMS CORP TO RUN ALL THEIR COMPUTER OPERATIONS MS BUYER OF T ROWE PRICE CAUTIONS THAT POSSIBLE PITFALLS REMAIN EVEN WITH DEALERS' RECENT SUCCESS ANOTHER DIP IN THE FORTUNES OF IBM AND COMPAQ FOR INSTANCE COULD AGAIN SEND MANY OF THE DEALER CHAINS INTO A FUNK FOR NOW MANY OF THE DEALERS ARE REVELING IN THE SIMPLE FACT THAT THEY'RE ALIVE IT USED TO BE A FOREGONE CONCLUSION THAT DELL AND COMPUSA WERE GOING TO WIPE PEOPLE LIKE US OUT MR ANDERSON SAYS NOW LOOK WHO IS DOING THE SOULSEARCHING 9402010067 940201 JUSTICE SEEKS OLD PROS FOR HELP ON ANTITRUST BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL THE ANTITRUST COPS ARE CALLING IN REINFORCEMENTS TO BOLSTER THE RANKS OF ITS ANTITRUST DIVISION THE JUSTICE DEPARTMENT HAS LAUNCHED A QUIET BUT AGGRESSIVE HIRING DRIVE ITS QUARRY EXPERIENCED TRIAL LAWYERS FROM THE PRIVATE SECTOR AMONG THE NEW HIRES IS SAMUEL R MILLER OF THE POWERFUL SAN FRANCISCO FIRM OF MORRISON & FOERSTER AND CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S ANTITRUSTLITIGATION COMMITTEE HIS ASSIGNMENT TO HELP SPEARHEAD THE JUSTICE DEPARTMENT'S INVESTIGATION OF MICROSOFT CORP THE NATION'S LARGEST SOFTWARE MAKER THE IDEA OF RECRUITING SEASONED TRIAL ATTORNEYS FROM PRIVATE LAW FIRMS TO GOVERNMENT JOBS ISN'T UNPRECEDENTED OF COURSE ATTORNEYS ROUTINELY ROTATE IN AND OUT OF GOVERNMENT JOBS BUT RETAINING WHAT ARE ESSENTIALLY HIRED GUNS TO WORK ON PARTICULAR CASES IS RARE AND DIFFICULT THE MOST THAT ANY OF THE NEW HIRES WILL MAKE IS 93500 A YEAR JUST SLIGHTLY MORE THAN WHAT A YOUNG LAWYER MIGHT MAKE STARTING OUT AT A MAJOR NEW YORK FIRM THE EXPERIENCE FACTOR HAS LONG BEEN A STICKY ISSUE IN THE ANTITRUST DIVISION IN THE 1970S THE DIVISION SOUGHT A WAIVER FROM THE OFFICE OF MANAGEMENT AND BUDGET SO IT COULD PAY ATTORNEYS ABOVE GOVERNMENT SCALE IT DIDN'T GET ONE AND HAD TO CONTINUE HIRING YOUNG LAWYERS TO FIGHT EVEN THE BIGGEST CASES WE HAD RELATIVELY INEXPERIENCED YOUNG LAWYERS RUNNING UP AGAINST VERY HIGHQUALITY OPPOSITION AND WORKING AT A DISADVANTAGE SAYS JOE SIMS A FORMER DEPUTY ASSISTANT ATTORNEY GENERAL FOR ANTITRUST IN THE CARTER ADMINISTRATION WE WERE TRYING TO FIX THAT PROBLEM WE DIDN'T FIX THAT PROBLEM MR MILLER WILL IN EFFECT BE FLOATING SENIOR LITIGATION COUNSEL ALONG WITH MAX L GILLAM THE SENIOR TRIAL LAWYER AT 500LAWYER LATHAM & WATKINS IN LOS ANGELES AND K CRAIG WILDFANG A MINNEAPOLIS ATTORNEY KNOWN FOR REPRESENTING PLAINTIFFS IN ANTITRUST CASES AGAINST THE WORKERS' COMPENSATION INSURANCE INDUSTRY ALTHOUGH THEY'LL BE WORKING FULL TIME FOR THE JUSTICE DEPARTMENT MESSRS MILLER AND GILLAM WILL BE ALLOWED TO MAINTAIN OFFICES IN SAN FRANCISCO AND LOS ANGELES RESPECTIVELY AMONG OTHER CASES THE NEW LAWYERS MAY WORK ON THE DEPARTMENT'S REVIEW OF THE PROPOSED MERGER OF TELECOMMUNICATIONS INC AND BELL ATLANTIC CORP THE DEAL IS I WOULD GO WHERE THE ACTION IS SAYS MR GILLAM THAT IS A NIFTY JOB FOR A TRIAL LAWYER ANNE K BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST HAS LURED EXPERIENCED ATTORNEYS TO THE JUSTICE DEPARTMENT WITH PROMISES THAT THEY WILL HAVE UNUSUAL LATITUDE IN HELPING TO IDENTIFY AND TRY MAJOR CASES LAST FALL SHE RECEIVED CONGRESSIONAL APPROVAL TO FUND THE ADDITIONAL SALARIES IT IS THE FIRST TIME THE DIVISION HAS EVER HAD THE RESOURCES AVAILABLE TO ENGAGE IN A CONCERTED HIRING PROGRAM SAYS STEVEN SUNSHINE A DEPUTY ASSISTANT SECRETARY TO MS BINGAMAN ANTITRUST WAS AMONG THE HARDEST HIT AREAS OF THE JUSTICE DEPARTMENT DURING THE REAGAN AND BUSH ADMINISTRATIONS WHEN THE RANKS OF LAWYERS ECONOMISTS AND STAFF WITHIN THE DIVISION WERE GREATLY THINNED BECAUSE OF THE PREVAILING FREEMARKET ATTITUDE TODAY THE DIVISION EMPLOYS ABOUT 600 PEOPLE DOWN FROM ROUGHLY 1000 IN 1980 WHEN MR REAGAN TOOK OFFICE MS BINGAMAN'S HIRING PUSH REFLECTS AN EFFORT TO REVERSE THAT TREND ASIDE FROM HIRING UP TO 40 NEW ATTORNEYS THE DIVISION IS ADDING A COMPARABLE NUMBER OF PARALEGALS ANOTHER SIGNAL THAT THE DEPARTMENT IS GEARING UP TO BRING SOME MAJOR CASES PRIVATE ATTORNEYS SAY SHE CERTAINLY WANTS TO MAKE SURE THAT SHE CAN HAVE A HIGH DEGREE OF CONFIDENCE IN HER TRIAL LAWYERS SAYS JACK BROWN A PHOENIX ATTORNEY WHO USED TO PRACTICE LAW IN THE SAME FIRM AS MS BINGAMAN REMEMBER THEY HAVEN'T DONE ANY SUBSTANTIAL TRIAL WORK THERE FOR A LONG TIME MR MILLER ASSIGNED TO THE MICROSOFT TEAM HAS ALREADY DIVED INTO HIS WORK BILL NEUKOM MICROSOFT'S VICE PRESIDENT LAW AND CORPORATE AFFAIRS SAYS HE HAS HAD A PRELIMINARY DISCUSSION WITH MR MILLER ABOUT THE STATUS OF THE INVESTIGATION WE WOULD HOPE AT THE END OF THE DAY THAT HE WOULD AGREE WITH US THAT THE COMPANY IS DOING BUSINESS IN A PERFECTLY LEGAL AND COMPETITIVE WAY MR NEUKOM SAYS THE INVESTIGATION IS BELIEVED TO FOCUS ON WHETHER MICROSOFT USED ITS POSITION AS THE DOMINANT SUPPLIER OF OPERATINGSYSTEM SOFTWARE FOR PERSONAL COMPUTERS TO ILLEGALLY THWART COMPETITION MR MILLER DECLINES TO COMMENT ON THE CASE HE SAYS THAT WHILE HE EXPECTS THE MICROSOFT CASE TO TAKE UP MOST OF HIS TIME FOR THE FORESEEABLE FUTURE HE EXPECTS HE WILL EVENTUALLY WORK ON OTHER MATTERS THERE'S A LOT TO DO HE SAYS MANY ATTORNEYS SAY THE NEW HIRES' TRIAL BACKGROUNDS ARE JUST WHAT THE ANTITRUST DOCTORS ORDERED I THINK THAT WHEN A LAWYER DEFENDING A COMPANY LOOKS ACROSS THE ROOM AND SEES A SAM MILLER OR A MAX GILLAM THEY ARE GOING TO THINK SIX TIMES ABOUT WHAT THEY ARE GOING TO DO IN THIS CASE SAYS JAMES BROSNAHAN A PARTNER OF MR MILLER'S AT MORRISON & FOERSTER AN INDIVIDUAL WHO FILES A CLAIM WITH A LOCAL ANTIBIAS AGENCY DOESN'T NECESSARILY FORFEIT HIS RIGHT TO PRIVACY A FEDERAL APPEALS COURT RULED THE CASE INVOLVED A FORMER PAN AM EMPLOYEE WHO FILED A COMPLAINT WITH THE CITY OF NEW YORK COMMISSION ON HUMAN RIGHTS ALLEGING THAT DELTA AIRLINES AFTER ACQUIRING SOME OF PAN AM'S ASSETS FAILED TO EMPLOY HIM BECAUSE HE WAS A GAY MALE AND BECAUSE OF SUSPICION CORRECT AS IT TURNED OUT THAT HE WAS HIV POSITIVE AFTER THE PARTIES ENTERED INTO A SETTLEMENT RESULTING IN THE MAN'S HIRING THE CITY ISSUED A NEWS RELEASE IN AUGUST 1992 DISCLOSING THE TERMS OF THE DEAL ALTHOUGH THE STATEMENT DIDN'T EXPRESSLY IDENTIFY HIM BY NAME THE MAN ALLEGED THAT IT CONTAINED SUFFICIENT IDENTIFYING INFORMATION TO HAVE VIOLATED HIS CONSTITUTIONAL RIGHT TO PRIVACY THE TRIALCOURT JUDGE DISMISSED THE MAN'S INVASIONOFPRIVACY SUIT AGAINST THE CITY DETERMINING THAT HE HAD WAIVED HIS PRIVACY RIGHT BY BRINGING THE CLAIM TO THE COMMISSION WHICH WAS REQUIRED BY STATUTE TO DISCLOSE ALL SETTLEMENTS IN REINSTATING THE COMPLAINT THE SECOND US CIRCUIT COURT OF APPEALS NEW YORK FOUND THAT THE MAN RETAINED HIS RIGHT TO CONFIDENTIALITY AND THAT THE STATUTE IN QUESTION DIDN'T AUTOMATICALLY MAKE THE MEDICAL INFORMATION A MATTER OF PUBLIC RECORD TO RULE OTHERWISE THE COURT WROTE WOULD BE TO UNDERMINE ENTIRELY THE PURPOSE OF THE COMMISSION ON HUMAN RIGHTS AND TO HEEDLESSLY MAKE PUBLIC THAT WHICH IS OFTEN SURELY INTENDED TO REMAIN PRIVATE IN RE JOHN DOE VS THE CITY OF NEW YORK ET AL 937596 CHICAGO MERGER CORBOY & DEMETRIO ONE OF THE NATION'S PREMIER PERSONALINJURY LAW FIRMS IS MERGING WITH ROBERT A CLIFFORD & ASSOCIATES THE COMBINED STAFF OF 30 LAWYERS WILL CONCENTRATE ON AVIATION MEDICAL NEGLIGENCE PRODUCT LIABILITY AND OTHER PERSONALINJURY CASES CORBOY & DEMETRIO'S LEAD LAWYER IS PHILIP H CORBOY 69 YEARS OLD COCHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION MR CLIFFORD 42 YEARS OLD IS A FORMER ASSOCIATE OF THE FIRM WHO SPLIT OFF IN 1984 TO START HIS OWN SHOP THE NEW FIRM WILL BE CALLED CORBOY DEMETRIO CLIFFORD PC MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402010066 940201 INTERNATIONAL BRIEF HITACHI LTD JAPANESE FIRM'S EARNINGS ARE EXPECTED TO IMPROVE HITACHI LTD EXPECTS ITS EARNINGS TO BEGIN IMPROVING IN THE SIX MONTHS ENDING MARCH 31 REVERSING TWO YEARS OF DECLINING PRETAX PROFIT IN AN INTERVIEW DIRECTOR YOSHIRO KUWATA SAID THAT WE THINK OUR EARNINGS HAVE HIT BOTTOM WE EXPECT SOME IMPROVEMENT IN THE NEXT HALF AND IN THE FUTURE FOR THE YEAR ENDED MARCH 31 1993 THE JAPANESE ELECTRONICS AND HEAVY POWER EQUIPMENT MAKER'S CONSOLIDATED SALES FELL 29 TO 7536 TRILLION YEN 6848 BILLION AND GROUP PRETAX PROFIT SLID 37 TO 23474 BILLION YEN WHILE MR KUWATA WOULDN'T DISCLOSE SPECIFIC FORECASTS HE SAID THE COMPANY IS BEGINNING TO SEE BENEFITS FROM A RATIONALIZATION PROGRAM THAT HAS EMPHASIZED TRANSFER OF PRODUCTION TO OVERSEAS LOCATIONS A STRONG YEN ERODED THE COMPETITIVENESS OF HITACHI PRODUCTS MADE IN JAPAN HITACHI CURRENTLY MAKES ROUGHLY 30 OF ITS PRODUCTS OUTSIDE JAPAN 9402010065 940201 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 8 HIGH 3 3/16 LOW 4 NEAR CLOSING BID 6 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 305 30 TO 59 DAYS 308 60 TO 119 DAYS 310 120 TO 159 DAYS 312 160 TO 179 DAYS 320 180 TO 249 DAYS 330 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 313 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 269 SIX MONTHS 304 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 302 ONE MONTH 310 THREE MONTHS 326 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 302 60 DAYS 303 90 DAYS 307 120 DAYS 312 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 590 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 680 60 DAYS 687 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 678 60 DAYS 688 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402010064 940201 LEISURE & ARTS CENTRAL PARK BIRDS FACE COLD AND PLUNDERING SQUIRRELS BY MARIE WINN WHEN IT IS HORRIBLY IMPLACABLY COLD WHEN ICE AND SNOW COVER THE GROUND AND ARCTIC WINDS RAGE THROUGH THE BARE RUINED CHOIRS WHERE ONCE THE SWEET BIRDS SANG AND THEN FOR THE MOST PART HAD THE SENSE TO HEAD FOR WARMER CLIMES WHAT ABOUT THE BIRDS THAT STAY BEHIND WHAT BECOMES OF THE CHICKADEES THE TITMICE THE DOWNY WOODPECKERS THE SPARROWS STARLINGS AND PIGEONS THAT WINTER IN URBAN WILDLIFE PRESERVES LIKE NEW YORK'S CENTRAL PARK WHEN THE TEMPERATURES PLUNGE TO ZERO AND BELOW ARE THEY DOOMED TO FREEZE LIKE THE POOR SPARROW IN OSCAR WILDE'S FAIRY TALE THE HAPPY PRINCE IN REAL LIFE BIRDS HAVE REMARKABLE RESISTANCE TO COLD FAR GREATER INDEED THAN MAMMALS ACCORDING TO THE AUDUBON SOCIETY ENCYCLOPEDIA OF NORTH AMERICAN BIRDS IT MAKES SOME SENSE WHEN YOU THINK OF WHAT MANY MAMMALS OF OUR OWN SPECIES WEAR WHEN THE WEATHER TURNS WINTRY DOWN GARMENTS BIRDS OF COURSE ARE PROTECTED BY THEIR OWN NATURAL DOWN FEATHERS IN FACT ARE ONE OF NATURE'S FINEST INSULATING AGENTS THERE IS VERY LITTLE EXPOSED SKIN ON THE BODY OF A BIRD NO PROJECTING EARS OR TAIL WHERE BODY HEAT MIGHT BE DISSIPATED ONLY THE FEET AND TO SOME DEGREE THE HORNY BILL ARE VULNERABLE TO HEAT LOSS WHICH EXPLAINS WHY YOU SOMETIMES SEE A BIRD STANDING ON ONE FOOT WITH THE OTHER TUCKED INTO THE BREAST FEATHERS OR WITH HIS BILL BURIED IN A WING TO CONSERVE HEAT AS WINTER APPROACHES THE FACTOR THAT IMPELS BIRDS TO FLY SOUTH IS NOT THE COLD IT IS THE FOOD SUPPLY THE BIRDS THAT MIGRATE ARE GENERALLY INSECT EATERS AND WHEN THE WEATHER TURNS TOO COLD FOR INSECT SURVIVAL THESE BIRDS MUST MOVE TO WHERE THE FOOD IS THE BIRDS THAT STAY ARE GENERALLY SEED AND BERRY EATERS WHOSE FOOD SUPPLY REMAINS AVAILABLE ON THE GROUND OR CLINGING TO LEAFLESS BRANCHES BUT IN ORDER TO STAY ALIVE IN CONDITIONS OF EXTREME COLD THESE BIRDS MUST EAT A GREATER QUANTITY OF HIGHENERGY FOODS THAN USUAL TO SUSTAIN THEIR NORMAL BODY TEMPERATURE WHICH FLUCTUATES BETWEEN 100 DEGREES AND 112 KNOWLEDGEABLE BIRDWATCHERS KNOW THIS WHICH MAY AT LEAST PARTLY EXPLAIN WHY LATE ON THE MORNING OF WEDNESDAY JAN 19 A DAY WHEN IT SEEMED THE ENTIRE NORTHEAST WAS COVERED WITH A SHEET OF ICE AND EVERYONE ELSE IN HER RIGHT MIND WAS HUDDLING INDOORS A SMALL GROUP OF DEDICATED ORNITHOPHILES ENTERED THE DESERTED WASTES OF CENTRAL PARK TO FEED THE BIRDS THE THREE LATTERDAY ST FRANCISES WHO BRAVED THE SUBZERO WEATHER THAT DAY WERE NORMA COLLIN A RETIRED ARTGALLERY OWNER MURRAY LIEBMAN A COLLEGE TEACHER AND CHARLES KENNEDY A HAIKU WRITER EVERY WEDNESDAY SINCE THE MIDDLE OF OCTOBER THEY AND A FEW OTHERS HAD BEEN REGULARLY STOCKING THE BIRDFEEDING STATION AT THE AZALEA POND DEEP IN THAT MANMADE WILDERNESS KNOWN AS THE RAMBLE A WELLKNOWN CENTRAL PARK TOURIST ATTRACTION THE AZALEA POND FEATURES SEVEN HOMEMADE BIRD FEEDERS CONSTRUCTED OUT OF PLASTIC JUGS THESE ARE REGULARLY FILLED WITH SUNFLOWER SEEDS AND ATTACHED TO HIGH BRANCHES OF TREES THAT OVERHANG A PICTURESQUE STREAM CALLED THE GILL REGULATION FRISBEES SUSPENDED BETWEEN THE JUGS AND THE BRANCHES ARE GENERALLY EFFECTIVE AT DETERRING RAPACIOUS SQUIRRELS THAT MORNING THE THREE BIRD ENTHUSIASTS HAD A PARTICULAR SENSE OF URGENCY THE CITY WAS ENDURING ONE OF ITS WORST COLD WAVES EVER AND THERE WERE ALREADY REPORTS OF SOME BIRD VICTIMS A FROZEN MALLARD HAD BEEN FOUND IN THE ICE BETWEEN THE LOCH AND THE POOL ON THE WEST SIDE OF THE PARK NEAR 100TH STREET AND A DEAD CANADA GOOSE AT THE NORTH SIDE OF THE RESERVOIR MOREOVER THERE WAS SOME DISQUIETING NEWS FROM THE AZALEA POND IN THE COURSE OF THAT DESPERATELY COLD WEEK SQUIRRELS HAD FINALLY INVADED THE FEEDERS CAUTIOUSLY MAKING THEIR WAY ON THE ICY PATH TO THE AZALEA POND MR KENNEDY MR LIEBMAN AND MS COLLIN THE LATTER DRESSED IN FIVE LAYERS ON TOP AND FOUR LAYERS ON THE BOTTOM WERE PREPARED FOR TROUBLE BUT WHEN THEY REACHED THE FROZEN STREAM THEY WERE SHOCKED BY WHAT THEY SAW THE SQUIRRELS HAD TWISTED THE FRISBEE BAFFLES GNAWED THROUGH THE BIRDSIZED ENTRANCE HOLES IN THE JUGS EATEN ALL THE SEEDS AND IN THE PROCESS DESTROYED MOST OF THE CONTAINERS BEYOND REPAIR IN ALL THE YEARS MS COLLIN HAD BEEN REFILLING THE FEEDERS SHE HAD NEVER SEEN QUITE SUCH A MESS SHE AND THE OTHERS HAD LUGGED A 20POUND BAG OF BIRD SEED TO THE FEEDING STATION AS WELL AS A COLLAPSIBLE 15FOOT POLE USED FOR ATTACHING THE FEEDERS TO TREE BRANCHES NOW AS THEY NUMBLY WONDERED WHETHER JUST TO DUMP THE SEEDS ON THE SNOWCOVERED GROUND AND LET THE BIRDS AND SQUIRRELS FIGHT IT OUT AMONG THEMSELVES ANOTHER ANGEL OF MERCY APPEARED ON THE SPOT IT WAS GEORGE MULLER A RETIRED ELECTRICIAN THE VERY MAN WHO HAD DEVISED AND CREATED THE FEEDERS HE TOO WAS AMAZED AT THE SQUIRRELS' DEPREDATIONS IT WAS AS IF THEY HAD TOOLS MR MULLER SAID A FEW DAYS LATER THEIR TEETH MUST BE LIKE BUZZ SAWS MR MULLER HAD COME PREPARED MS COLLIN HAD CALLED HIM ON MONDAY TO TELL HIM THAT THE FEEDERS WERE DAMAGED AND THIS MOVED HIM TO TAKE SWIFT ACTION HE EMPTIED OUT A GALLON JUG OF BRECK SHAMPOO HE HAD AT HOME APPROPRIATED ANOTHER LARGE PLASTIC CONTAINER HE NORMALLY USED FOR WATERING HIS PLANTS AND COMMANDEERED A THIRD FROM HIS BUILDING'S BASEMENT IN ALL THREE VESSELS HE CUT OUT BIRD ENTRANCE HOLES AT THE SIDES HE ATTACHED HOOKS TO THE TOP OF EACH THEN BECAUSE IT WAS A PAINFULLY COLD DAY HE WAITED FOR THE WEATHER TO IMPROVE BUT THE NEXT DAY WAS EVEN COLDER AND ON WEDNESDAY THE TEMPERATURE WENT DOWN TO MINUS TWO DEGREES STILL MR MULLER FELT CERTAIN THAT THE BIRDFEEDING SQUAD WOULD BE IN THE PARK THAT DAY NO MATTER WHAT HE BUNDLED UP AND HEADED FOR THE AZALEA POND AT ABOUT 11 AM WITH HIS THREE NEW FEEDERS AND SO IT HAPPENED THAT ON THE COLDEST DAY OF 1994 SO FAR MR MULLER MR LIEBMAN MR KENNEDY AND MS COLLIN FILLED THREE NEW BIRD FEEDERS TO THE BRIM WITH SUNFLOWER SEEDS AND WITH THE HELP OF A LONG POLE HOOKED THEM ON THE BRANCHES OF AN OVERHANGING CORK TREE THEN IN THE SPIRIT OF TRUE FORGIVENESS THEY SCATTERED QUITE A QUANTITY OF ADDITIONAL SEEDS ON THE GROUND FOR THE HUNGRY SQUIRRELS MS COLLIN HAD ONE MORE TREAT PREPARED FOR THE BIRDS TWO DAYS EARLIER A FEW FRIENDS HAD THROWN A PARTY TO CELEBRATE HER 65TH BIRTHDAY THE HIGH POINT OF THE OCCASION WAS A CAKE DECORATED WITH A REALISTIC PICTURE OF ONE OF MS COLLIN'S FAVORITE BIRDS A GREAT BLUE HERON THE GUESTS MERELY PECKED AT THIS AVIAN DESSERT SO A BIG CHUNK OF CAKE WAS LEFT OVER AFTER THE PARTY MS COLLIN TOOK IT HOME WITH THE BEAUTIFUL HERON ALMOST INTACT BUT THESE WERE DESPERATE TIMES ON WEDNESDAY MORNING BEFORE SETTING OFF FOR THE PARK MS COLLIN SCRAPED ALL THE ICING FROM THE CAKE AND STUCK IT INTO A PLASTIC BAG AT THE AZALEA POND SHE SMEARED IT ON THE DEEPLY FURROWED BARK OF THE CORK TREE THE ICING WAS MOSTLY BUTTER A HIGHENERGY FOOD AND WITHIN MINUTES TWO DOWNY WOODPECKERS WERE WOLFING IT DOWN SO TO SPEAK THEY WERE SOON JOINED BY A MALE REDBELLIED WOODPECKER ANNOUNCING HIS ARRIVAL WITH A THROATY CHURR FINALLY A COUPLE OF TITMICE JOINED THE BELATED BIRTHDAY CELEBRATION CHICKADEES FLEW BACK AND FORTH FROM THE FEEDERS TO NEARBY BRANCHES SELFDESCRIPTIVELY CALLING CHICKADEEDEEDEE ON THE GROUND THREE KINDS OF SPARROWS HOUSE SONG AND WHITETHROATED CHIRPED AS THEY FED ON SCATTERED BIRD SEED ALONGSIDE A CONSIDERABLE MOB OF ROCK DOVES PIGEONS THAT IS AND IN THE MIDDLE OF JANUARY DEEP IN THE HEART OF CENTRAL PARK THE BARE RUINED CHOIRS RESOUNDED WITH SWEET BIRD SONG MS WINN IS A WRITER IN NEW YORK 9402010063 940201 INTERNATIONAL BRIEF SUN ALLIANCE GROUP PLC COMPANY TO SELL SOME ASSETS IN SETTLEMENT OF A DISPUTE SUN ALLIANCE GROUP PLC SAID IT IS SELLING ITS LEASEHOLD INTERESTS IN THE HARLEQUIN SHOPPING CENTER IN WATFORD NORTH OF LONDON TO CAPITAL & COUNTIES A UNIT OF TRANSATLANTIC HOLDINGS PLC THE SALE FOR 162 MILLION 2423 MILLION IS TO BE COMPLETED ON FEB 28 AND REPRESENTS AN OUTOFCOURT SETTLEMENT BETWEEN THE TWO PARTIES C&C AND SUN ALLIANCE WERE JOINTLY INVOLVED IN THE HARLEQUIN PROJECT IN 1988 FOLLOWING THE UNITED KINGDOM PROPERTY MARKET RECESSION THAT BEGAN IN THE LATE 1980S C&C DISPUTED THE JOINT VENTURE AGREEMENT AS THE AGREEMENT STOOD THEN C&C WASN'T GETTING THE RETURNS EXPECTED FROM THE HARLEQUIN CENTER SUN REFUSED TO RENEGOTIATE THE CONTRACT AND COURT PROCEEDINGS INSTITUTED BY C&C BEGAN LAST WEEK WITH THIS PURCHASE C&C IS EFFECTIVELY BUYING OUT ALL OF SUN ALLIANCE'S INTERESTS IN THE VENTURE 9402010062 940201 MARKETING & MEDIA NETWORKS AND CABLETV INDUSTRY AGREE ON PROPOSAL TO MONITOR VIOLENCE LEVELS BY ELIZABETH JENSEN AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE FUTURE OF LEGISLATION GOVERNING TELEVISION VIOLENCE IS EXPECTED TO TAKE A NEW TWIST TODAY WHEN THE BROADCAST NETWORKS AND THE CABLETV INDUSTRY TELL CONGRESS THAT THEY HAVE AGREED ON A PLAN TO MONITOR THE LEVELS OF VIOLENCE ON THEIR PROGRAMS IN EXCHANGE SEN PAUL SIMON D ILL A LEADER IN THE CAMPAIGN TO REDUCE VIOLENCE ON TELEVISION IS EXPECTED TO ANNOUNCE THAT HE WILL NEITHER INTRODUCE NOR SUPPORT LEGISLATION AGAINST TV VIOLENCE THIS YEAR THERE ARE 10 DIFFERENT BILLS ON THE TOPIC IN THE WORKS SEPARATELY THE CABLETELEVISION INDUSTRY WITH AT LEAST ONE NOTABLE EXCEPTION ALSO WILL ANNOUNCE TODAY THAT IT HAS AGREED TO DEVELOP A RATING SYSTEM FOR ITS ENTERTAINMENT NETWORKS CABLETV COMPANIES ALSO HAVE AGREED TO SUPPORT DEVELOPMENT OF A TECHNOLOGY THAT WILL LET VIEWERS BLOCK OUT SHOWS WITH A VIOLENT RATING ONE SUCH DEVICE THE SOCALLED VCHIP HAS ALREADY BEEN PROPOSED BY REP EDWARD MARKEY D MASS WHO WILL PARTICIPATE IN THE CABLETV INDUSTRY'S ANNOUNCEMENT OTHERS PARTICIPANTS INCLUDE DECKER ANSTROM PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION AND WINSTON COX CHAIRMAN OF VIACOM INC'S SHOWTIME NETWORKS INC WHO HAS LED THE INDUSTRY INITIATIVE THE FUTURE OF CABLE TV'S VIOLENCE RATINGS PLAN IS VERY MUCH IN DOUBT HOWEVER BECAUSE THE PLAN REQUIRES THAT THE BROADCAST NETWORKS AND INDEPENDENT STATIONS JOIN ANY SUCH PROGRAM BEFORE IT CAN BE IMPLEMENTED FOR THE MOST PART THE BROADCAST NETWORKS HAVE ADAMANTLY OPPOSED SUCH A SYSTEM WITH SOME EXECUTIVES ARGUING THAT IT IS THE FIRST STEP ON THE ROAD TO CENSORSHIP BROADCASTERS ALSO ARE CONCERNED THAT ADVERTISERS WILL FLEE FROM SHOWS THAT ARE LABELED VIOLENT ALTHOUGH THE NETWORKS ALSO CONTEND THAT THEY HAVE FEW SHOWS THAT WOULD EVEN GET SUCH A RATING WE REALLY DO NEED BROADCASTERS TO GET BEHIND A RATINGS SYSTEM SAID MR COX WE CAN ONLY BE EFFECTIVE IF EVERYBODY IS ON BOARD HE ADDED IF WE DON'T DO SOMETHING TOWARDS A SELFPOLICING EFFORT WE'LL BE LEGISLATED AND THE CONSQUENCE WILL BE MORE SEVERE FROM A PRACTICAL POINT YOU'RE BETTER OFF DOING IT TO YOURSELF THE CABLETV RATINGS PLAN IS BEING PROPOSED OVER THE OBJECTIONS OF USA NETWORK AN ADVERTISERSUPPORTED NETWORK OWNED BY PARAMOUNT COMMUNICATIONS INC AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC USA NETWORK HAS CITED SIMILAR CONCERNS OVER CENSORSHIP IN ADDITION THERE IS A QUESTION AS TO WHAT KIND OF TECHNOLOGY THE CABLETV INDUSTRY SUPPORTS SOME IN THE INDUSTRY OPPOSE REP MARKEY'S PROPOSED SYSTEM WHICH WOULD AUTOMATICALLY BLOCK OUT SHOWS RATED VIOLENT OTHER PROPOSALS WOULD ALLOW VIEWERS TO SELECT THE SHOWS THEY WISH TO BLOCK WE DON'T SUPPORT LEGISLATION SHOWTIME'S MR COX SAID BUT WE CERTAINLY SUPPORT VIEWERDISCRETION TECHNOLOGY WE WANT PEOPLE TO CONTROL WHAT TYPE OF PROGRAMMING IS COMING INTO THEIR HOUSE THE MONITORING SYSTEM AGREED TO BY CBS INC CAPITAL CITIES/ABC INC GENERAL ELECTRIC CO'S NBC AND NEWS CORP'S FOX WOULD PROVIDE QUALITATIVE ANALYSIS OF THE NETWORKS' PROGRAMMING WHICH WOULD BE PERFORMED BY AN OUTSIDE MONITOR AND REPORTED TO THE PUBLIC ANNUALLY IT IS EXPECTED TO BE UP AND RUNNING NO LATER THAN THE BEGINNING OF THIS YEAR'S FALL SEASON IN RECENT WEEKS TELEVISION PROGRAMMERS HAVE FACED INCREASED PRESSURE TO DEVELOP A VOLUNTARY PLAN ADDRESSING TV VIOLENCE THE CORPORATION FOR PUBLIC BROADCASTING TODAY WILL RELEASE RESULTS OF A STUDY IN WHICH 82 OF THE 1000 PEOPLE POLLED SAID THEY THINK TV PROGRAMMING IS TOO VIOLENT WITH THE BROADCAST NETWORKS COMING IN FOR CRITICISM FROM 70 OF RESPONDENTS CABLETV NETWORKS FROM 57 AND PUBLIC TELEVISION FROM JUST 14 AT LAST WEEK'S CONVENTION OF THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES IN MIAMI THE NEW FEDERAL COMMUNICATIONS COMMISSSION CHAIRMAN REED HUNDT EXHORTED BROADCASTERS TO VOLUNTARILY CUT BACK ON VIOLENT SCENES AND COUPLED THAT APPEAL WITH THE THREAT THAT THE FCC WOULD VIGOROUSLY ENFORCE ANY LEGISLATION THAT CONGRESS DECIDED TO PASS 9402010061 940201 WHO'S NEWS FOKKER'S CHAIRMAN RESIGNS IN DISPUTE OVER RESTRUCTURING AMSTERDAM THE CHAIRMAN OF DUTCH AIRCRAFTMAKER FOKKER NV RESIGNED IN A BOARDROOM CLASH OVER THE NEED FOR RESTRUCTURING AND LAYOFFS ERIK JAN NEDERKOORN 50 YEARS OLD QUIT WHEN HIS PLANS FOR A THIRD ROUND OF JOB CUTS PROVED TOO UNPOPULAR HIS DEPARTURE LEAVES THE COMPANY WITHOUT A CLEAR STRATEGY AT A CRUCIAL TIME MR NEDERKOORN COULDN'T BE REACHED FOR COMMENT MR NEDERKOORN WAS SUCCEEDED BY VICE CHAIRMAN REINDER VAN DUINEN IN A CARETAKER CAPACITY ONCE FAMOUS FOR BUILDING FIGHTER PLANES FOR GERMANY DURING WORLD WAR I AND FOR DESIGNING SOME OF THE WORLD'S FIRST COMMERCIAL AIRLINERS FOKKER HAS FACED INCREASINGLY BRUTAL COMPETITION IN ITS FIELD OF COMMUTER AIRCRAFT AND OTHER SMALL PLANES THE COMPANY HAS SAID IT EXPECTS TO POST A NET LOSS OF ABOUT 150 MILLION DUTCH GUILDERS 7686 MILLION FOR 1993 AND AT MIDYEAR IN 1993 REPORTED DEBT OUTSTANDING OF 43 BILLION GUILDERS FOKKER IS 51OWNED BY DEUTSCHE AEROSPACE AG AN ARM OF GERMANY'S DAIMLERBENZ AG FOKKER CUT OVER 1600 JOBS IN TWO ROUNDS OF LAYOFFS LAST YEAR AND MR NEDERKOORN HAD BEEN PLANNING A THIRD WAVE OF FIRINGS IT'S NOT CLEAR YET WHAT WILL HAPPEN TO THE LAYOFF PLANS SAID A SPOKESWOMAN AT THE COMPANY WHICH CURRENTLY EMPLOYS AROUND 9800 PEOPLE FOKKER'S BOARDROOM HAS BEEN HIT BY SUCCESSIVE RESIGNATIONS OVER THE PAST FEW YEARS MR NEDERKOORN'S EFFORTS TO SELL FOKKER TO DEUTSCHE AEROSPACE A DEAL THAT WENT THROUGH IN EARLY 1993 STIRRED LONGLASTING RESENTMENT 9402010060 940201 INTERNATIONAL BRIEF RHONEPOULENC RORER INC PROFIT IN '93 DECLINED 46 ON A DECREASE IN SALES OF 2 RHONEPOULENC RORER INC THE US PHARMACEUTICAL SUBSIDIARY OF FRENCH CHEMICALS AND DRUG GROUP RHONEPOULENC SA SAID ITS 1993 NET INCOME FELL 46 TO 4087 MILLION AS SALES DECLINED 2 TO 402 BILLION THE UNIT ALSO SAID PERSHARE EARNINGS WILL LIKELY BE MODERATE IN 1994 THAT IS AROUND 10 ABOVE 1993'S PERSHARE EARNINGS OF 296 AND PERSHARE EARNINGS GROWTH IN 1995 AND BEYOND SHOULD BE AT LEAST 10 PER YEAR DEPENDING ON THE SUCCESS OF NEW PRODUCTS COMPANY OFFICIALS SAID AT A NEWS CONFERENCE IN PARIS RHONEPOULENC RORER OFFICIALS ALSO SAID THAT THEY ARE LOOKING FOR A STRATEGIC PARTNER TO DEVELOP OPERATIONS WORLDWIDE IN OVERTHECOUNTER DRUGS CHIEF OPERATING OFFICER MICHEL DE ROSEN SAID THAT THE GROUP WANTS TO INCREASE ITS WEIGHT IN THE OTC BUSINESS IN THE US AND IMPROVE ITS RESULTS IN EUROPE 9402010059 940201 INTERNATIONAL BRIEF MATRAHACHETTE SA CHAIRMAN OFFERS EXCHANGE WITH SHARES OF LAGARDERE MATRAHACHETTE SA CHAIRMAN JEANLUC LAGARDERE SAID MONDAY THAT HE HAS PROPOSED A PUBLIC EXCHANGE OFFER FOR ALL OF THE CAPITAL OF MATRAHACHETTE OFFERING TO SWAP MATRAHACHETTE SHARES FOR THOSE OF ITS PARENT COMPANY LAGARDERE GROUPE SA ONE MATRAHACHETTE SHARE WOULD BE EXCHANGED FOR ONE LAGARDERE GROUPE SHARE PLUS ONE WARRANT MR LAGARDERE ALSO SAID HE EXPECTS MATRAHACHETTE'S 1993 PROFIT TO EXCEED 600 MILLION FRANCS 1015 MILLION UP FROM 1992'S NET INCOME OF 354 MILLION FRANCS MR LAGARDERE SAID THE GROUP WILL FOLLOW THROUGH ONLY IF IT IS ABLE TO ACQUIRE 65 OF MATRAHACHETTE'S CAPITAL LAGARDERE NOW HOLDS 376 OF MATRAHACHETTE'S CAPITAL AND 612 OF THE VOTING RIGHTS LAGARDERE SHARES WERE SUSPENDED AT 160 FRANCS 2705 THOSE OF MATRA HACHETTE WERE SUSPENDED AT 1654 FRANCS 9402010058 940201 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS ORDERED A NEW MILITARY CALLUP TO PREPARE FOR WIDER CLASHES WHILE THE EXTENT OF THE MOBILIZATION WASN'T KNOWN IT SEEMED TO STEM FROM THE INCREASINGLY AGGRESSIVE MILITARY STANCE OF BOSNIA'S MUSLIMLED GOVERNMENT TROOPS AS WELL AS FEARS THE WEST MIGHT INTERVENE IN RECENT MONTHS THE GOVERNMENT FORCES HAVE SHOWN SURPRISING STRENGTH AGAINST THE SERBS AND HAVE TAKEN TERRITORY IN CENTRAL BOSNIA FROM ETHNIC CROATS AMID THE SERB AND CROAT MILITARY SETBACKS THERE HAVE BEEN PERSISTENT REPORTS THAT CROATIA AND SERBDOMINATED YUGOSLAVIA HAVE BEGUN SENDING THOUSANDS OF SOLDIERS INTO BOSNIA THE US ENDORSED A REPORT BY UN CHIEF BOUTROSGHALI GIVING THE GOAHEAD FOR AIR STRIKES ON BOSNIAN SERBS IF THEY DON'T ALLOW THE REPLACEMENT OF PEACEKEEPERS AT SREBRENICA AND THE OPENING OF TUZLA'S AIRPORT US MARINES OPENED FIRE IN A MOGADISHU STREET CROWDED WITH SOMALIS WAITING FOR FREE FOOD AT LEAST EIGHT PEOPLE DIED AND MANY WERE WOUNDED A US SPOKESMAN SAID THE 22 MARINES SHOT IN SELFDEFENSE AFTER SNIPERS SHOT AT THEIR FIVEVEHICLE CONVOY SOMALI WITNESSES AND BANGLADESHI PEACEKEEPERS SAID NO ONE FIRED AT THE AMERICANS RUSSIA'S PRIVATIZATION CHIEF VOWED TO FIGHT ANY EFFORTS TO SLOW ECONOMIC REFORMS BUT CHUBAIS THE ONLY LEADING LIBERAL LEFT IN THE RUSSIAN CABINET CAUTIONED THAT THE DEPARTURE OF ECONOMICS MINISTER GAIDAR AND FINANCE MINISTER FYODOROV CREATES A REAL DANGER OF BACKSLIDING EMBRYONIC BRAIN CELLS WERE PLACED ON ELECTRONIC CHIPS AND WERE INDUCED TO GROW IN WHAT RESEARCHERS SAID WAS A KEY FIRST STEP TOWARD CREATING MICROCHIPS USING LIVING CELLS THE SCIENTISTS HOPE TO BE ABLE TO GET THE BRAIN CELLS OR NEURONS TO GROW CONNECTIONS TO EACH OTHER CRUDELY MIMICKING BRAIN CIRCUITRY TWO KEY REPUBLICAN SENATORS STRESSED THAT ANY HEALTHREFORM BILL SHOULD PROVIDE FOR UNIVERSAL INSURANCE COVERAGE THE REMARKS BY CHAFEE AND NICKLES CAME A WEEK AFTER CLINTON THREATENED TO VETO ANY HEALTH BILL THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY ISRAELI CABINET MINISTERS PREDICTED A BREAKTHROUGH IN ISRAELPLO TALKS AS PRIME MINISTER RABIN REVIEWED A DRAFT AGREEMENT DRAWN UP IN SWITZERLAND THE ACCORD REACHED DURING DISCUSSIONS BETWEEN FOREIGN MINISTER PERES AND THE PLO'S ARAFAT WOULD HELP PAVE THE WAY FOR PALESTINIAN SELFRULE A US HUMANRIGHTS REPORT WILL FAULT CHINA FOR NOT MAKING ENOUGH PROGRESS A SENIOR ADMINISTRATION OFFICIAL SAID THE STATE DEPARTMENT'S MOSTLY NEGATIVE REPORT ON CHINA DUE TO BE ISSUED TODAY COMES AS WASHINGTON NEARS A DECISION ON RENEWING BEIJING'S SPECIAL TRADE STATUS THE ANNUAL REPORT COVERS RIGHTS PROBLEMS WORLDWIDE TEENAGE DRUG USE ROSE SIGNIFICANTLY LAST YEAR FOR THE FIRST TIME IN MORE THAN A DECADE A NEW STUDY SHOWS IN 1993 429 OF HIGH SCHOOL SENIORS SAID THEY HAD USED AN ILLICIT DRUG ACCORDING TO THE UNIVERSITY OF MICHIGAN SURVEY DRUG USE HAD BEEN DECLINING SINCE 1980 WHEN 654 OF SENIORS SAID THEY HAD USED ILLICIT DRUGS HAIRDYE USE DOESN'T INCREASE THE RISK OF CANCER ACCORDING TO A LARGE SEVENYEAR STUDY CONDUCTED BY THE AMERICAN CANCER SOCIETY THE STUDY WAS INTENDED TO ADDRESS CONCERNS THAT WERE RAISED BY EARLIER RESEARCH KOHL SAID THAT BUILDING DEMOCRACY IN RUSSIA AND EASTERN EUROPE IS THE MAJOR FUTURE TASK FACING THE WEST AND HE URGED THE US TO MAINTAIN ITS GLOBAL LEADERSHIP THE WORLD CONTINUES TO PIN ITS HOPES ON THE US THE GERMAN CHANCELLOR SAID IN A WASHINGTON SPEECH TO STATE GOVERNORS AFTER A MEETING WITH CLINTON MANDELA REJECTED A DEMAND FOR CHANGES IN THE VOTING RULES FOR SOUTH AFRICA'S FIRST ALLRACE ELECTION IN APRIL MAKING IT EVEN MORE UNLIKELY THAT DISSIDENTS WILL TAKE PART A ROUND OF TALKS BETWEEN MANDELA'S AFRICAN NATIONAL CONGRESS THE WHITE GOVERNMENT AND AN ALLIANCE OF OPPONENTS ENDED WITH LITTLE CHANCE FOR AN AGREEMENT CRIMEA'S NEWLY ELECTED LEADER PLEDGED TO CALL A REFERENDUM ON INDEPENDENCE FROM UKRAINE YURI MESHKOV A PRORUSSIAN SECESSIONIST WON SUNDAY'S PRESIDENTIAL RUNOFF ELECTION WITH 73 OF THE VOTE IN THE AUTONOMOUS REPUBLIC HE HAS SAID HE FAVORS A GRADUAL REUNION WITH RUSSIA 9402010057 940201 BUSINESS BRIEF TEXTRON INC FINANCIAL LIABILITY FOR UNIT IS POSSIBLE IN RECALL BY GM A TEXTRON INC AUTOMOTIVE PARTS MAKER FACES FINANCIAL LIABILITY FOR A FAULTY FUELPIPE ASSEMBLY THAT IT SUPPLIED TO GENERAL MOTORS CORP ACCORDING TO PEOPLE FAMILIAR WITH A RECALL ANNOUNCED LAST WEEK GM RECALLED 53000 NEW S10 PICKUP TRUCKS AND EXPECTS TO MAKE THE CHANGE ON 67000 UNSOLD VEHICLES SAYING THAT THE FAULTY PARTS DIDN'T MEET FEDERAL STANDARDS FOR FUEL LEAKAGE IN A COLLISION GM WOULDN'T NAME THE SUPPLIER OF THE PART AND TEXTRON IN PROVIDENCE RI DIDN'T RETURN CALLS YESTERDAY BUT A PERSON FAMILIAR WITH THE SITUATION SAID THE SUPPLIER WAS A CINCINNATIBASED TEXTRON UNIT RANDALL TEXTRON THE UNIT WAS ALSO NAMED AS THE SUPPLIER IN THE CURRENT ISSUE OF THE AUTOMOTIVE NEWS TRADE WEEKLY A GM SPOKESWOMAN SAID THE UNIDENTIFIED SUPPLIER HAS STEPPED UP TO IT AND ACKNOWLEDGED ITS RESPONSIBILITY SHE SAID THAT THE COMPANY HAS OTHERWISE BEEN A QUALITY SUPPLIER TO US FOR MANY YEARS 9402010056 940201 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC EARNINGS FOR 4TH QUARTER REVERSE YEAREARLIER LOSS CONSOLIDATED FREIGHTWAYS INC SAID THAT WHILE ITS LONGHAUL TRUCKING BUSINESS CONTINUES TO LAG A SURGE IN AIR FREIGHT AND REGIONAL TRUCKING DROVE FOURTHQUARTER EARNINGS INTO THE BLACK CONSOLIDATED IN PALO ALTO CALIF REPORTED FOURTHQUARTER NET INCOME OF 121 MILLION OR 33 CENTS A SHARE COMPARED WITH A LOSS OF 186 MILLION OR 53 CENTS A SHARE A YEAR EARLIER THE COMPANY'S YEARAGO RESULTS INCLUDED 173 MILLION OR 51 CENTS A SHARE FOR NONRECURRING CHARGES FOURTHQUARTER REVENUE WAS 11 BILLION UP 85 FROM 1 BILLION A YEAR AGO FOR ALL OF 1993 CONSOLIDATED REPORTED NET INCOME OF 316 MILLION OR 87 CENTS A SHARE COMPARED WITH A 1992 LOSS OF 977 MILLION OR 278 A SHARE THE 1992 RESULTS INCLUDED ONETIME CHARGES AND THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE REVENUE FOR 1993 WAS 42 BILLION UP 34 FROM 41 BILLION IN 1992 THE STOCK CLOSED AT 2625 A SHARE UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK ECHANGE 9402010055 940201 BUSINESS BRIEF INTERPROVINCIAL PIPE LINE SYSTEM UNIT WINS APPROVAL FOR PLAN TO EXPAND PIPELINE SYSTEM CANADA'S NATIONAL ENERGY BOARD APPROVED INTERPROVINCIAL PIPE LINE INC'S PLAN TO EXPAND ITS PIPELINE SYSTEM FOR DELIVERING CRUDE OIL TO US PIPELINES SUPPLYING THE US MIDWEST THE BOARD SAID INTERPROVINCIAL WILL BE ABLE TO CONSTRUCT ABOUT 304 MILES OF 20INCH DIAMETER PIPELINE ACROSS THE CANADIAN PRAIRIES REACTIVATE AN IDLE PIPELINE AND EXPAND ITS OIL PUMPING FACILITIES IT SAID INTERPROVINCIAL PLANS TO SPEND 256 MILLION CANADIAN DOLLARS 1933 MILLION ON THE PIPELINE EXPANSION THIS YEAR THE BOARD PREDICTED THAT UNDER OILPRICE ASSUMPTIONS PROVIDED BY INTERPROVINCIAL THE PROJECT WOULD STIMULATE PRODUCTION OF CANADIAN CRUDE OIL THAT WOULD OTHERWISE BE DIFFICULT TO TRANSPORT AND THAT IT WOULD IMPROVE THE COMPETITIVE POSITION OF CANADIAN CRUDE OIL DELIVERIES TO THE US MIDWEST INTERPROVINCIAL EDMONTON ALBERTA IS A UNIT OF INTERPROVINCIAL PIPE LINE SYSTEM INC ALSO OF EDMONTON 9402010054 940201 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP UNITS INVOLVING NAVY DOE AND ENVIRONMENT JOINED WESTINGHOUSE ELECTRIC CORP PITTSBURGH SAID IT COMBINED ITS US NAVY OPERATIONS WITH ITS DEPARTMENT OF ENERGY AND ENVIRONMENTALSERVICES BUSINESSES THE MOVE IS PART OF NEW CHAIRMAN MICHAEL H JORDAN'S PLAN TO FOCUS ON SEVERAL CORE BUSINESSES WHICH ALSO INCLUDE POWER GENERATION BROADCASTING ELECTRONIC SYSTEMS AND THERMO KING A TRANSPORTATIONREFRIGERATION COMPANY THE NEW UNIT IS CALLED WESTINGHOUSE GOVERNMENT & ENVIRONMENTAL SERVICES CO THE NEW ORGANIZATION WILL HAVE SEVERAL ADVANTAGES MR JORDAN SAID IT WILL HELP TRANSFER THE BEST SAFETY ENVIRONMENTAL AND MANAGEMENT PRACTICES AMONG THE DOE SITES WE MANAGE IT WILL QUICKEN THE PACE OF TECHNOLOGY TRANSFER FROM DOE SITES INTO THE PRIVATE SECTOR AND IT WILL PROVIDE THE SENIOR MANAGEMENT LEADERSHIP NECESSARY TO FURTHER IMPROVE PERFORMANCE OF OUR NAVY NUCLEAR PROGRAMS FRANCIS J HARVEY 50 YEARS OLD WAS NAMED PRESIDENT OF THE NEW UNIT HE MOST RECENTLY WAS VICE PRESIDENT OF WESTINGHOUSE'S SCIENCE AND TECHNOLOGY CENTER 9402010053 940201 BUSINESS BRIEF NATIONAL MEDIA CORP TWO SHAREHOLDERS FILE SUIT TO STOP BID BY VALUEVISION TWO NATIONAL MEDIA CORP SHAREHOLDERS FILED SUIT IN THE DELAWARE COURT OF CHANCERY IN WILMINGTON SEEKING TO HALT VALUEVISION INTERNATIONAL INC'S UNSOLICITED BID TO ACQUIRE NATIONAL MEDIA THE SUIT FILED JAN 20 ALLEGES THAT THE 10ASHARE OFFER BY VALUEVISION A MINNEAPOLISBASED HOME SHOPPING NETWORK DOES NOT FAIRLY VALUE NATIONAL MEDIA A PHILADELPHIA INFOMERCIAL MARKETER IT NAMES VALUEVISION NATIONAL MEDIA AND THE OFFICERS AND DIRECTORS OF NATIONAL MEDIA ON FRIDAY NATIONAL MEDIA'S BOARD REJECTED VALUEVISION'S 1175 MILLION OFFER CALLING IT INADEQUATE VALUEVISION DECLINED TO COMMENT THE PLAINTIFFS' LAWYERS DIDN'T RETURN CALLS FOR COMMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONAL MEDIA SHARES FELL 75 CENTS OR 67 TO 10375 VALUEVISION'S CLASS A SHARES FINISHED AT 1225 UNCHANGED IN NASDAQ STOCK MARKET TRADING 9402010052 940201 BUSINESS BRIEF MURPHY OIL CORP SHAREHOLDERS OF SMALL LOTS CAN SELL STOCK WITHOUT FEE MURPHY OIL CORP SAID IT WILL CUT ADMINISTRATIVE COSTS BY OFFERING HOLDERS OF SMALL LOTS THE OPPORTUNITY TO SELL THEIR SHARES WITHOUT PAYING A COMMISSION THE OIL AND NATURAL GAS COMPANY BASED IN EL DORADO ARK SAID HOLDERS OF FEWER THAN 100 SHARES OF MURPHY COMMON STOCK OR FEWER THAN 182 SHARES OF OCEAN DRILLING & EXPLORATION CO A COMPANY MURPHY ACQUIRED IN 1991 CAN SELL THOSE SHARES THROUGH SHAREHOLDERS COMMUNICATIONS CORP WITHOUT PAYING A FEE THE OIL AND NATURAL GAS COMPANY SAID THE PROGRAM IS OPEN TO STOCK OF RECORD JAN 21 AND WILL EXPIRE FEB 25 A COMPANY SPOKESMAN ESTIMATED THERE WERE 4400 LOTS OF LESS THAN 100 MURPHY SHARES AND 1500 LOTS OF LESS THAN 182 OCEAN DRILLING SHARES 9402010051 940201 BUSINESS BRIEF COTT CORP SUPPLY AGREEMENT REACHED WITH ROYAL CROWN COLA COTT CORP SAID IT REACHED A SUPPLY AGREEMENT WITH ROYAL CROWN COLA SECURING A LONGTERM SOURCE OF CONCENTRATE FOR COTT'S PRIVATELABEL SOFT DRINKS WORLDWIDE UNDER THE 21YEAR AGREEMENT ROYAL CROWN A UNIT OF TRIARC COS OF MIAMI BEACH FLA WILL BE THE EXCLUSIVE SUPPLIER FOR ALL COLA CONCENTRATES USED IN COTT'S RETAILERBRANDED SOFT DRINKS COTT A MISSISSAUGA ONTARIO PRIVATELABEL SOFTDRINK CONCERN ALSO AGREED TO PURCHASE AT LEAST 75 OF ITS WORLDWIDE REQUIREMENTS FOR ALL TYPES OF CONCENTRATES FROM ROYAL CROWN UNDER THE PACT ROYAL CROWN WON'T SUPPLY CONCENTRATE TO OTHER PRIVATELABEL SOFTDRINK COMPANIES SEPARATELY COTT SAID IT ACQUIRED A 51 STAKE IN THE CANNING OPERATION OF BENJAMIN SHAW & SONS LTD THE SOFTDRINK UNIT OF RUTLAND TRUST PLC OF THE UNITED KINGDOM FOR ABOUT US9 MILLION WITH OPTIONS TO ACQUIRE THE ENTIRE OPERATION NEXT YEAR COTT SAID THE CANNING PLANT HAS ANNUAL SALES OF MORE THAN 60 MILLION 9402010050 940201 BUSINESS BRIEF UNITED DOMINION INDUSTRIES LTD COMPANY AGREES TO SELL 85 OF DOMINION BRIDGE UNIT UNITED DOMINION INDUSTRIES LTD SAID IT AGREED TO SELL AN 85 STAKE IN ITS DOMINION BRIDGE CONSTRUCTION UNIT IN CANADA TO CEDAR GROUP INC OF CONSHOHOCKEN PA UNITED DOMINION SAID IT WILL RECEIVE FIVE MILLION CANADIAN DOLLARS US38 MILLION IN CASH AND PREFERRED SHARES OF CEDAR EXCHANGEABLE INTO COMMON SHARES UNITED DOMINION SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF UP TO US5 MILLION RELATED TO THE SALE UNITED DOMINION A MANUFACTURING CONSTRUCTION AND ENGINEERING CONCERN IS INCORPORATED IN ONTARIO AND BASED IN CHARLOTTE NC THE SALE IS SUBJECT TO REGULATORY APPROVALS AND COMPLETION OF DEFINITIVE AGREEMENTS THE COMPANY SAID IT ENDED A PREVIOUS TENTATIVE AGREEMENT TO SELL THE 85 STAKE IN DOMINION BRIDGE TO A COMPANY RELATED TO MANSON GROUP OF MONTREAL 9402010049 940201 BUSINESS BRIEF EATON CORP US CLEARS MOVE ALLOWING DEAL WITH WESTINGHOUSE THE JUSTICE DEPARTMENT CLEARED AN EATON CORP DIVESTITURE THAT WILL ALLOW EATON TO ACQUIRE A UNIT OF WESTINGHOUSE ELECTRIC CORP UNDER THE PLAN CLEVELANDBASED EATON WILL SELL ASSETS USED IN THE MANUFACTURE OF SWITCHES AND CIRCUIT BREAKERS AND THEN ACQUIRE WESTINGHOUSE'S DISTRIBUTIONANDCONTROL UNIT WHICH MAKES SIMILAR DEVICES THE 11 BILLION ACQUISITION WILL ENHANCE EATON'S DIVERSIFICATION AND ALLOW PITTSBURGHBASED WESTINGHOUSE TO CUT ITS HEAVY DEBT AN EATON SPOKESMAN SAID THE COMPANY IS HOPEFUL THE TRANSACTION WILL BE COMPLETED SOON EATON'S SALE OF ITS ASSETS TO THOMAS & BETTS OF MEMPHIS ENABLED THE JUSTICE AGENCY TO PERMIT THE EATONWESTINGHOUSE DEAL TO GO UNCHALLENGED THIS DIVESTITURE PRESERVES COMPETITION FOR THE SALE OF BASIC PRODUCTS THAT ARE ESSENTIAL FOR THE SAFE USE OF ELECTRICITY SO THAT HOMEOWNERS BUSINESSES AND OTHER BUYERS ARE ENSURED THE BEST QUALITY PRODUCTS AT THE LOWEST POSSIBLE PRICES SAID ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST 9402010048 940201 BUSINESS BRIEF RJR NABISCO HOLDINGS CORP UNIT ACQUIRES KNOX BUSINESS FROM UNILEVER GROUP UNIT RJR NABISCO HOLDINGS CORP'S NABISCO FOODS GROUP SAID IT ACQUIRED THE KNOX GELATIN BUSINESS IN THE US AND PUERTO RICO FROM THOMAS J LIPTON CO AN OPERATING UNIT OF UNILEVER GROUP TERMS WEREN'T DISCLOSED THE PACT ALSO CALLS FOR NABISCO FOODS PARSIPPANY NJ TO BUY TWO GELATINPACKAGING LINES FROM LIPTON WHICH IT WILL INSTALL AT ITS SEVILLE OHIO PLANT JOHN GREENIAUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NABISCO FOODS SAID THE ACQUISITION IS PART OF A STRATEGY TO ENHANCE PROFITABILITY IN ITS ROYAL DESSERTS BUSINESS RJR NABISCO HOLDINGS IS A NEW YORKBASED FOOD AND TOBACCO COMPANY 9402010047 940201 REVIEW & OUTLOOK EDITORIAL MEET THE CLEAN AIR MONSTER THE MORE WE BECOME FAMILIAR WITH THE CLEAN AIR ACT AMENDMENTS OF 1990 THE MORE WE'RE INCLINED TO THINK IT'S ONE OF THE MORE MONSTROUS PIECES OF FEDERAL LEGISLATION PASSED IN OUR ERA IT'S WORTH ONE'S ATTENTION IF FOR NO OTHER REASON THAN THAT IT TYPIFIES SO WELL THE NATURE OF MUCH MODERN LEGISLATION BEYOND THE GOOGOO NAME THE PUBLIC ACTUALLY KNOWS LITTLE IF ANYTHING ABOUT THE LAW'S ABSTRUSE DETAILS AND THE PUBLIC IS GOING TO HAVE NEXT TO NOTHING TO DO WITH ITS IMPLEMENTATION AND NOTHING WHATSOEVER TO SAY ABOUT ITS COSTS WHICH THEY WILL PAY FOR INSTANCE THE LAW MAY INCREASE THE COST OF A NEW CAR IN MANY STATES BY 1000 TODAY 13 BUREAUCRATS WILL VOTE ON THAT THEY MAKE UP SOMETHING CALLED THE OZONE TRANSPORT COMMISSION THE CLEAN AIR AMENDMENTS CREATED THE OZONE TRANSPORT COMMISSION WHICH CONSISTS OF THE ENVIRONMENTAL OFFICERS OF 12 STATES IN THE EAST FROM VIRGINIA TO MAINE PLUS THE DISTRICT OF COLUMBIA THE CONGRESSIONAL STAFFERS AND OTHERS WHO WROTE THE CLEAN AIR AMENDMENTS ASSIGNED SOME SMOGREDUCTION GOALS WITH DEADLINES AND THEN GAVE THE COMPLIANCE JOB TO THE STATES WHICH IN REALITY MEANS THEIR RESPECTIVE UNELECTED ENVIRONMENTAL BUREAUCRACIES TODAY'S VOTE IS AN INTERESTING AND CLEVER EXAMPLE OF HOW THE PROCESS WORKS ONCE THE LAW HAS BEEN PASSED THE STATE OFFICERS ARE VOTING ON WHETHER THEY SHOULD ASK THE US ENVIRONMENTAL PROTECTION AGENCY TO PROPOSE A FEDERAL RULE THAT WOULD REQUIRE THE SALE OF CALIFORNIATYPE LOW EMISSION VEHICLES IN THEIR STATES AND BEYOND THIS VOTE ALWAYS LIES THE POSSIBILITY OF LITIGATION FROM THE SIERRA CLUB AND HENRY WAXMAN TO ENLIST FEDERAL JUDGES IN THE PROCESS CLEANAIR MERITS ASIDE WHAT FASCINATES US ABOUT THIS IS HOW THE PROCESS MAKES IT NEARLY IMPOSSIBLE TO IDENTIFY WHO IS RESPONSIBLE OR ACCOUNTABLE FOR ANYTHING HERE BEYOND THE ORIGINAL VOTE IN CONGRESS FOR CLEAN AIR IN FACT THE VOTE TODAY BY THE OZONE TRANSPORT COMMISSION IS BEING HOTLY CONTESTED BUT IT'S UNLIKELY THAT ANY CITIZEN OF THESE 12 STATES OTHER THAN THE IMMEDIATE COMBATANTS KNOWS MUCH OF ANYTHING ABOUT THE BATTLE OVER WHETHER TO MAKE PEOPLE PAY PERHAPS 1000 EXTRA FOR LOW EMISSION CARS THAT'S THE AUTO INDUSTRY'S EDUCATED GUESS OF INTRODUCING WHAT'S KNOWN AS THE CALIFORNIA CAR TO THE NORTHEAST BUT FEW OBSERVERS DOUBT THAT PUTTING THE COMPLIANCE BURDENS ON NEW CARS WOULD INCREASE THEIR PRICE NOT TO MENTION THE ADDED COST OF REFORMULATED GASOLINE TO RUN THEM LAST JULY SCIENCE MAGAZINE PUBLISHED AN ARTICLE ON THIS SUBJECT BY FOUR SPECIALISTS ON EMISSIONS FROM MIT BERKELEY CAL TECH AND THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH WE PARTICULARLY LIKED THE AUTHORS' IRONIC DESCRIPTION OF THE LAW'S FUEL REQUIREMENTS OXYGENATE REQUIREMENTS IN THAT ACT WERE ARBITRARY IN A SCIENTIFIC SENSE AS DATA ARE BECOMING AVAILABLE THE COMPLEX PROBLEM OF FUEL EMISSIONS AND ATMOSPHERIC REACTIVITY IS BECOMING APPARENT THE GOOD NEWS IS THAT OUR FEDERAL SYSTEM STILL TRIES TO RESTRAIN HOW FAR CONGRESS CAN DRIVE WITH THE LIGHTS OFF VIRGINIA DELAWARE NEW HAMPSHIRE NEW JERSEY AND PENNSYLVANIA HAVE REPORTEDLY CONCLUDED THAT THERE MAY BE MORE COSTEFFECTIVE APPROACHES THAN THE SQUEAKY CLEAN CALIFORNIA CAR NEW JERSEY'S NEW GOVERNOR CHRISTIE WHITMAN HAS ALREADY ORDERED HER ENVIRONMENTAL NOMINEE TO VOTE TODAY FOR A DELAY A REPORT BY THE NEW JERSEY INSTITUTE OF TECHNOLOGY PREDICTED MILLIONS OF DOLLARS IN ADDED COSTS THE SCIENCE MAGAZINE AUTHORS SAID THE EVERMORE EXPENSIVE FUEL RECIPES WERE SIMPLY A SUBSIDY FOR THE SMALL NUMBER OF DIRTY OLD CARS THAT ACTUALLY CAUSE THE SMOG PROBLEM THE MOST AGGRESSIVE ENVIRONMENTALISTS AND BUREAUCRATS HAVE A STOCK ANSWER NOW TO COSTBENEFIT OBJECTIONS BETTER SAFE THAN SORRY OUR OWN VIEW WOULD BE THAT THE CLEAN AIR AMENDMENTS ARE A CASE HISTORY OF POLICY HUBRIS AGAIN AS IS BECOMING INCREASINGLY TYPICAL OF MODERN LEGISLATING THERE SEEMS TO HAVE BEEN AN ASSUMPTION HERE THAT YES THE LAW IS GOING TO IMPOSE SIGNIFICANT COSTS BUT THE DETAILS ARE TOO ARCANE TO GENERATE WIDE PUBLIC OPPOSITION AND YOU CAN PUSH IT ALL THROUGH ON A WAVE OF GOOD IF VAGUE INTENTIONS THEY'VE LARGELY BEEN RIGHT ABOUT THAT TOO BUT IF THESE 12 BUREAUCRATS PLUS THE DISTRICT INDEED VOTE TODAY TO ASK THE EPA TO MANDATE SIGNIFICANTLY MORE EXPENSIVE NEW CARS VIA ADMINISTRATIVE FIAT THERE MAY BE A BACKLASH THIS TIME THAT DOESN'T MEAN AN ANGRY PUBLIC WILL WIN THE CLEAN AIR MONSTER WAS VOTED INTO LAW BACK IN 1990 CONGRESS AT LEAST A DEMOCRATICALLY CONTROLLED CONGRESS DOESN'T MUCH LIKE TO REVISIT ITS CREATIONS FOR PURPOSES OF SHRINKING THEM BUT THE CLEAN AIR MONSTER WILL BE WORTH REMEMBERING AS CONGRESS UNDERTAKES THE CLINTONS' HEALTH CARE PLAN THE SUBJECT IS DIFFERENT THE PROCESS IS THE SAME 9402010046 940201 BUSINESS BRIEF GATEWAY 2000 INC COMPANY ESTIMATES SALES IN FOURTH QUARTER ROSE 54 GATEWAY 2000 INC NORTH SIOUX CITY SD SAID IT EXPECTS TO REPORT FOURTHQUARTER SALES OF MORE THAN 545 MILLION OR 54 HIGHER THAN A YEAR EARLIER EARNINGS AT THE MAILORDER COMPUTER CONCERN ARE ESTIMATED AT 41 CENTS TO 43 CENTS A SHARE FOR NET INCOME OF 30 MILLION TO 315 MILLION GATEWAY IS EXPECTED TO RELEASE ITS FULL FINANCIAL RESULTS NEXT WEEK THE COMPANY WHICH RAISED 1635 MILLION IN AN INITIAL OFFERING IN DECEMBER ATTRIBUTED THE SALES GAINS TO RECORD DEMAND FOR ITS MULTIMEDIA PERSONAL COMPUTERS ITS PORTABLE PCS AND ITS MACHINES BASED ON INTEL CORP'S TOPOFTHELINE PENTIUM MICROPROCESSOR THE COMPANY SAID ITS FOURTHQUARTER REVENUE INCLUDES 15 MILLION IN SALES FROM THE EUROPEAN UNIT OPENED IN OCTOBER FOR THE YEAR GATEWAY PUT REVENUE AT 173 BILLION COMPARED WITH 111 BILLION FOR 1992 9402010045 940201 BUSINESS BRIEF OXFORD HEALTH PLANS INC FOURTHQUARTER EARNINGS REVENUE INCREASED SHARPLY OXFORD HEALTH PLANS INC CITING A SURGE IN MEMBERSHIP SAID FOURTHQUARTER NET INCOME GREW 93 AND REVENUE MORE THAN DOUBLED EARNINGS TOTALED 47 MILLION OR 28 CENTS A SHARE COMPARED WITH 24 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE GREW TO 959 MILLION FROM 466 MILLION OXFORD BASED IN NORWALK CONN MARKETS HEALTH PLANS TO EMPLOYERS IT SAID IT ADDED 360 EMPLOYER GROUPS AND 17000 INDIVIDUAL MEMBERS IN THE LATEST QUARTER INCREASING YEAREND INDIVIDUAL MEMBERSHIP 85 TO 217500 AN AVERAGE 69 OVERALL PREMIUMRATE INCREASE APPROVED BY THE NEW YORK STATE INSURANCE DEPTARMENT FOR 1994 SHOULD HAVE A POSITIVE IMPACT ON THIS YEAR'S RESULTS OXFORD SAID FOR THE YEAR EARNINGS INCREASED 32 TO 149 MILLION OR 91 CENTS A SHARE FROM 113 MILLION OR 74 CENTS A SHARE IN 1992 9402010044 940201 WHAT'S NEWS BUSINESS & FINANCE BMW AGREED TO BUY 80 OF BRITISH AUTO MAKER ROVER CARS FOR 12 BILLION THE PURCHASE WOULD NEARLY DOUBLE BMW'S SALES AND VAULT IT INTO THE LUCRATIVE US MARKET FOR SPORTUTILITY VEHICLES WITH THE VENERABLE LAND ROVER NAME BRITISH AEROSPACE ROVER'S PARENT ACCEPTED AN OFFER FROM BMW SATURDAY AFTER HONDA PASSED UP A CHANCE TO BUY THE 80 OF ROVER THAT IT DOESN'T ALREADY OWN THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 3293 TO A RECORD 397836 AS INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS ESPECIALLY ALUMINUM AND AUTO MANUFACTURERS THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT ITS YIELD ROSE TO 623 FEDERAL RESERVE CHAIRMAN GREENSPAN WARNED CONGRESS THAT THE FED WOULD BOOST SHORTTERM INTEREST RATES AT SOME POINT BUT HE REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO AT&T'S EO IS EXPECTED TO REDESIGN ITS SMALL DATA COMMUNICATOR AFTER SELLING LESS THAN 10000 OF THE HANDHELD DEVICES AND THEN REPOSITION ITS PRODUCTS AS SMART CELLULAR TELEPHONES IBM DECIDED TO FORGO THE RIGHT TO MAKE INTEL'S LATESTGENERATION CHIP THE PENTIUM FREEING IBM TO PUT MORE RESOURCES BEHIND ITS RIVAL ENTRY IN AN EMERGING CHIP WAR THE POWERPC AN FDA PROBE FOUND SEVERAL IRREGULARITIES IN THE PRODUCTION OF COPLEY'S RECALLED ASTHMA DRUG ALBUTEROL JAPANESE STOCKS SOARED 78 MONDAY THE FOURTHLARGEST GAIN EVER TRIGGERED BY A POLITICALREFORM ACCORD A GATT ACCORD PROVISION THAT ALLOWS CERTAIN GOVERNMENT SUBSIDIES WAS BLASTED BY ALL 44 SENATE REPUBLICANS GIVING THE WHITE HOUSE ITS FIRST BIG POLITICAL TEST IN ITS EFFORT TO PUSH THE GLOBAL TRADE PACT THROUGH CONGRESS TRADE REPRESENTATIVE KANTOR WENT TO TOKYO TO PRESS THE JAPANESE CABINET TO BREAK AN IMPASSE IN TRADE TALKS MANY PARAMOUNT INVESTORS DECIDED NOT TO TENDER THEIR SHARES YET IN HOPE OF SEEING A HIGHER OFFER FROM QVC BY TODAY'S 5 PM BIDDING DEADLINE QVC'S BOARD DIDN'T ISSUE ANY STATEMENT AFTER A MEETING YESTERDAY LEE IACOCCA IS FORMING A MERCHANT BANK THAT WILL FOCUS ON DEALS IN ENTERTAINMENT AIRLINES AND GAMBLING A MORATORIUM ON TAKEOVERS OF MUTUAL SAVINGS ASSOCIATIONS WAS DECLARED BY THE OFFICE OF THRIFT SUPERVISION WHILE IT CONSIDERS POSSIBLE NEW RULES FRENCH EURO DISNEY BONDHOLDERS ARE DEMANDING REPRESENTATION AT TALKS AIMED AT SALVAGING THE PARK AND WANT WALT DISNEY TO COME TO THEIR RESCUE DISPOSABLE PERSONAL INCOME ROSE 05 IN DECEMBER FROM NOVEMBER MATCHING INCREASES IN SPENDING MICROGRAFX IS TEAMING UP WITH THE MAKER OF CRAYOLA CRAYONS TO DEVELOP A LINE OF CHILDREN'S COMPUTER PROGRAMS LEHMAN BROTHERS PLANS TO LAUNCH A DERIVATIVES UNIT AND NUNZIO TARTAGLIA IS EXPECTED TO HEAD EQUITY DERIVATIVES RESEARCH AND QUANTITATIVE ANALYSIS BONDS LEHMAN BROTHERS TREASURY INDEX 564698 OFF 905 COMMODITIES OIL 1519 A BARREL OFF 15 CENTS DOW JONES FUTURES INDEX 14215 UP 059 SPOT INDEX 12973 UP 016 DOLLAR 10870 YEN OFF 130 17345 MARKS OFF 00080 9402010043 940201 BUSINESS BRIEF APPLIED INNOVATION INC SHARES JUMP 78 ON NEWS ABOUT 2FOR1 STOCK SPLIT SHARES OF APPLIED INNOVATION INC JUMPED 78 AFTER THE COMPANY ANNOUNCED A 2FOR1 STOCK SPLIT AND SAID IT EXPECTS TO POST STRONGER EARNINGS FOR 1993 THE COMPANY WHICH MAKES NETWORKMANAGEMENT PRODUCTS FOR TELECOMMUNICATIONS COMPANIES EXPECTS TO REPORT NET INCOME OF 36 MILLION FOR THE FOURTH QUARTER UP FROM 15 MILLION A YEAR AGO THE WORTHINGTON OHIO COMPANY'S SHARES ROSE 374 TO A NEW 52WEEK HIGH OF 5175 ON THE NASDAQ MARKET THE 2FOR1 STOCK SPLIT IS PAYABLE MARCH 2 TO STOCK OF RECORD FEB 16 THE COMPANY HAD 36 MILLION SHARES OUTSTANDING AT THE END OF DECEMBER 9402010042 940201 BUSINESS BRIEF DOW JONES & CO PRICING STRUCTURE REVISED FOR NEWS/RETRIEVAL SERVICE DOW JONES & CO SAID IT ADOPTED A NEW PRICING STRUCTURE FOR ITS DOW JONES NEWS/RETRIEVAL SERVICE IN THE US BASED ON THE AMOUNT OF INFORMATION RECEIVED EFFECTIVE MARCH 1 CUSTOMERS WILL PAY 150 PER 1000 CHARACTERS OF INFORMATION INCLUDING LETTERS SPACES AND PUNCTUATION MARKS REGARDLESS OF THE TIME OF DAY OR NETWORK SPEED THE RATE PREVIOUSLY WAS 114 PER 1000 CHARACTERS CHARGES FOR TIME SPENT ON LINE WHICH HAD RANGED FROM 80 CENTS TO 195 A MINUTE WILL BE ELIMINATED ALL CUSTOMERS PAY A ONETIME STARTUP FEE OF 2995 AND AN ANNUAL 1995 SERVICE FEE DOW JONES NEWS/RETRIEVAL PROVIDES A WIDE VARIETY OF ONLINE BUSINESS AND FINANCIAL NEWS AND INFORMATION INCLUDING THE FULL TEXT OF THE WALL STREET JOURNAL THE SERVICE IS PUBLISHED BY DOW JONES BUSINESS INFORMATION SERVICES A PART OF THE INFORMATION SERVICES GROUP OF DOW JONES DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND COMMUNITY NEWSPAPERS 9402010041 940201 THERMO ELECTRON SAYS TWO SUBSIDIARIES BUY BAKER HUGHES LINES WALTHAM MASS THERMO ELECTRON CORP SAID TWO OF ITS PUBLIC SUBSIDIARIES ACQUIRED ANALYTICAL INSTRUMENT AND PROCESSCONTROL BUSINESSES FROM BAKER HUGHES INC FOR 134 MILLION THERMO INSTRUMENT SYSTEMS INC WILL PAY 93 MILLION FOR UNITS THAT MANUFACTURE PROCESSMEASUREMENT AND CONTROL EQUIPMENT WHILE THERMEDICS INC WILL ACQUIRE THE RAMSEY TECHNOLOGIES AND EPSILON INDUSTRIAL MATERIALS AND MEASUREMENT BUSINESSES FOR 41 MILLION BAKER HUGHES' ENVIROTECH NORAN INSTRUMENTS TN TECHNOLOGIES AND TREMETRICS UNITS WILL GO TO THERMO INSTRUMENT THE FOUR BUSINESSES HAD COMBINED SALES OF 129 MILLION IN THE YEAR ENDED SEPT 30 RAMSEY WHICH MAKES EQUIPMENT THAT WEIGHS AND INSPECTS BULKPACKAGED MATERIALS AND EPSILON A DEVELOPMENTSTAGE COMPANY WORKING ON EQUIPMENT THAT MEASURES THE MOISTURE CONTENT OF MATERIALS HAD COMBINED REVENUE OF 59 MILLION IN THE YEAR ENDED SEPT 30 BAKER HUGHES SAID THE PRICE FOR THE UNITS IS SLIGHTLY IN EXCESS OF ITS TOTAL INVESTMENT THE COMPANY SAID THE AGREEMENT WHICH IS EXPECTED TO CLOSE BY THE END OF NEXT MONTH DOES NOT INCLUDE THE COMPUTER PERIPHERALS BUSINESS IN EUROPE TRACOR EUROPA THERMEDICS WHICH MAKES EXPLOSIVES AND DRUGDETECTION EQUIPMENT SAID THE ACQUISITIONS WILL HELP EXTEND ITS NEW QUALITYASSURANCE PRODUCT LINE FOR THE BEVERAGE INDUSTRY TO RELATED MARKETS SUCH AS FOOD INSPECTION THERMO INSTRUMENT AN INSTRUMENT MAKER SAID IT GAINS NEW TECHNOLOGY IN THE ONLINE PROCESS INSTRUMENTATION MARKET SEPARATELY THERMO REMEDIATION INC ANOTHER PUBLIC THERMO UNIT DECLARED ITS FIRST CASH DIVIDEND OF 15 CENTS A SHARE PAYABLE MARCH 15 TO HOLDERS OF RECORD FEB 15 THE COMPANY SAID IT INTENDS TO PAY A CASH DIVIDEND SEMIANNUALLY 9402010040 940201 BUSINESS BRIEF UPJOHN CO FOURTHQUARTER EARNINGS ROSE 6 TO 1638 MILLION UPJOHN CO KALAMAZOO MICH SAID ITS FOURTHQUARTER EARNINGS ROSE 6 TO 1638 MILLION OR 92 CENTS A SHARE FROM 1542 MILLION OR 86 CENTS A SHARE A YEAR EARLIER THE RESULTS WHICH EXCEEDED ANALYSTS EXPECTATIONS MARKED THE LAST QUARTER UNDER THE TEAM LED BY THEODORE COOPER UPJOHN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO DIED IN APRIL FROM CANCER LAST MONTH UPJOHN NAMED JOHN L ZABRISKIE AN EXECUTIVE VICE PRESIDENT AT MERCK & CO AS CHAIRMAN AND CEO HE OFFICIALLY ASSUMED RESPONSIBILITY THIS MONTH SALES FOR THE PERIOD SLID 42 TO 9263 MILLION FROM 9671 MILLION A YEAR EARLIER SALES OF SEVERAL UPJOHN PRODUCTS WERE DOWN FROM THE YEAR EARLIER PERIOD WORLDWIDE SALES OF XANAX AN ANTIANXIETY AGENT PLUNGED 39 DURING THE QUARTER TO 120 MILLION PATENT PROTECTION ON UPJOHN'S TOPSELLING DRUG EXPIRED LAST OCTOBER SALES OF ROGAINE A TREATMENT FOR HAIR LOSS SLIPPED 33 TO 28 MILLION AND SALES OF HALCION A SLEEP MEDICATION WERE OFF 1 HALCION WHICH IS BANNED IN THE UNITED KINGDOM LOST ITS PATENT PROTECTION IN OCTOBER TOO 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 9402010039 940201 BUSINESS BRIEF SHURGARD INC PROPOSAL FOR CONSOLIDATION IS CLOSE TO BEING APPROVED THE GENERAL PARTNERS OF 17 PARTNERSHIPS THAT OWN SELFSERVICE STORAGE CENTERS INDICATED THEY ARE CLOSE TO WINNING APPROVAL OF A PLAN TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED COMPANY MEANWHILE UHAUL INTERNATIONAL INC WHICH IS TRYING TO ACQUIRE THE PARTNERSHIPS FOR 3575 MILLION SAID FEW PARTNERSHIP UNITS HAVE BEEN TENDERED TO IT THE PARTNERSHIPS ARE MANAGED BY SHURGARD INC OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS SHURGARD IS FIGHTING UHAUL'S BID SAYING IT FALLS WELL SHORT OF THE NET ASSET VALUE OF THE PARTNERSHIPS AND THEIR LIKELY VALUATION BY THE STOCK MARKET SHURGARD SAID IT HAD BEEN TENDERED A MAJORITY OF THE UNITS OF 15 OF THE PARTNERSHIPS AND CLOSE TO A MAJORITY OF THE UNITS OF TWO OTHER PARTNERSHIPS THE SHURGARD OFFER EXPIRES FEB 22 UHAUL CONTROLLED BY THE SHOEN FAMILY THROUGH ITS AMERCO HOLDING COMPANY SAID NO MORE THAN 7 OF THE UNITS OF ANY OF THE PARTNERSHIPS HAD BEEN TENDERED TO IT THE UHAUL OFFER EXPIRES FEB 9402010038 940201 BUSINESS BRIEF OCTEL COMMUNICATIONS CORP ACCORD IS SIGNED TO ACQUIRE VMX IN A STOCK TRANSACTION OCTEL COMMUNICATIONS CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE VMX INC FOR STOCK VALUED AT 1391 MILLION UNDER THE TERMS OF THE MERGER OCTEL SAID IT WILL PAY ONE OF ITS SHARES FOR EACH FIVE VMX SHARES OCTEL WHICH HAS ABOUT 18 MILLION SHARES OUTSTANDING SAID IT WILL ISSUE AN ADDITIONAL 53 MILLION SHARES WHICH WILL BE EXCHANGED FOR VMX'S 265 MILLION SHARES OUTSTANDING IN NASDAQ TRADING YESTERDAY OCTEL'S SHARES FELL 150 A SHARE OR 54 TO CLOSE AT 2625 WHILE VMX SHARES JUMPED 8125 CENTS OR 194 TO CLOSE AT 5 A SHARE OCTEL A MILPITAS CALIF COMMUNICATIONSSOFTWARE MAKER SAID THE ACQUISITION OF VMX WILL GIVE THE COMPANY A COMBINED CUSTOMER BASE OF 17000 USERS AND 30000 SYSTEMS VMX BASED IN SAN JOSE CALIF SPECIALIZES IN VOICEPROCESSING SOFTWARE 9402010037 940201 BUSINESS BRIEF TELESAT CANADA COMPANY EXPECTS TO RESTORE SATELLITE TO COMPLETE SERVICE TELESAT CANADA SAID IT EXPECTS TO RESTORE TO COMMERCIAL SERVICE A COMMUNICATIONS SATELLITE THAT IT SAYS WAS KNOCKED OUT OF COMMISION TWO WEEKS AGO BY A POWERFUL GEOMAGNETIC STORM TELESAT OFFICIALS SAID THEY INTEND TO KEEP THE ANIK E2 SATELLITE POINTING TOWARD EARTH BY FIRING THE SPACECRAFT'S THRUSTER ROCKETS EVERY FEW MINUTES FOR THE REMAINDER OF THE SATELLITE'S OPERATING LIFE THE PROCEDURE WILL REDUCE THE SATELLITE'S LIFE BY AS MUCH AS TWO YEARS TELESAT OFFICIALS ESTIMATED THE E2 WHICH WAS LAUNCHED IN 1991 WAS EXPECTED TO LAST FOR ANOTHER 10 YEARS THE PLAN REQUIRES TELESAT TO BUILD A GROUND NETWORK OF SENSORS TO MEASURE THE SATELLITE'S TILT FROM THE EQUATOR THE SYSTEM IS EXPECTED TO COST ABOUT 3 MILLION CANADIAN DOLLARS US23 MILLION SAID LARRY BOISVERT TELESAT PRESIDENT WE ARE 100 TECHNICALLY CONFIDENT THAT WE CAN MAKE THIS SYSTEM WORK TO BRING ANIK E2 INTO FULL COMMERCIAL SERVICE THIS SUMMER HE SAID TELESAT IS CONTROLLED BY CANADA'S MAJOR TELEPHONE COMPANIES 9402010036 940201 BUSINESS BRIEF RH MACY & CO DECEMBER SALES FELL A BIT BUT PROFIT ROSE ALMOST 38 RH MACY & CO PROVIDING DETAILS ABOUT ITS IMPORTANT DECEMBER SELLING SEASON SAID THAT DESPITE A SLIP IN TOTAL SALES ITS PROFIT ROSE ALMOST 38 IN A MONTHLY COURT FILING REQUIRED WHILE OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM CREDITORS MACY SAID IT HAD NET INCOME OF 2033 MILLION UP FROM 1477 MILLION IN DECEMBER 1992 THE NEW YORKBASED RETAILER WHICH OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES AMONG OTHERS SAID THE RESULTS WERE DUE LARGELY TO IMPROVEMENTS IN MERCHANDISING GROSS MARGIN AND CONTINUED REDUCTION IN OPERATING EXPENSES AS REPORTED TOTAL SALES FOR THE MONTH DROPPED 15 TO 1178 BILLION COMPARED WITH 1196 BILLION IN DECEMBER 1992 DECEMBER SALES IN STORES OPEN MORE THAN ONE YEAR A KEY RETAILING INDICATOR WERE FLAT WITH THE YEAREARLIER MACY'S EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION IN DECEMBER ROSE ABOUT 30 TO 2661 MILLION COMPARED WITH 2051 MILLION IN DECEMBER 1992 9402010035 940201 BUSINESS BRIEF INTERNATIONAL MUSTO EXPLORATIONS MIM PLANS JOINT VENTURE AT BIG ARGENTINE DEPOSIT INTERNATIONAL MUSTO EXPLORATIONS LTD SAID IT SIGNED A LETTER OF INTENT WITH MIM HOLDINGS LTD OF AUSTRALIA TO JOINTLY DEVELOP MUSTO'S BIG COPPER AND GOLD DEPOSIT IN ARGENTINA UNDER THE PROPOSED AGREEMENT MIM WOULD PAY MUSTO 130 MILLION US FOR A 50 STAKE IN THE BAJO DE LA ALUMBRERA PROJECT THE DEPOSIT CONTAINS MINEABLE RESERVES OF 10 MILLION OUNCES OF GOLD AND SIX BILLION POUNDS OF COPPER ACCORDING TO MUSTO WHICH IS BASED IN VANCOUVER BRITISH COLUMBIA THE PACT COULD THWART A PLANNED TAKEOVER BID BY METALL MINING CORP OF TORONTO FOR ALL THE SHARES OF MUSTO METALL SAID LAST WEEK IT PLANS TO OFFER 1625 CANADIAN DOLLARS US1226 FOR EACH OF THE 163 MILLION MUSTO SHARES OUTSTANDING ON A FULLY DILUTED BASIS MUSTO DIRECTOR BILL RAND SAID THE COMPANY PREFERS THE MIM PACT BECAUSE IT ATTACHES A HIGHER VALUE TO THE PROJECT THAN THE PLANNED METALL OFFER WHICH HAS AN INDICATED VALUE OF C265 MILLION A METALL OFFICIAL SAID THE COMPANY WILL MAKE A FORMAL OFFER FOR THE MUSTO SHARES THIS WEEK MUSTO SAID A FORMAL PACT WITH MIM IS EXPECTED LATE THIS MONTH 9402010034 940201 SEARS BECOMES A SPONSOR OF DENNIS CONNER'S BOAT CHICAGO SEARS ROEBUCK & CO IS JUMPING INTO CELEBRITY SPONSORSHIP WITH BOTH FEET THE RETAILER SAID IT WILL BE A PRIME SPONSOR OF THE STARS & STRIPES BOAT IN THE AMERICA'S CUP RACES BEGINNING IN SEPTEMBER AND THIS SPRING WILL BEGIN SELLING AN EXCLUSIVE LINE OF MEN'S CASUAL SHOES AND SPORTSWEAR CALLED STARS & STRIPES SEARS SAID THE SPONSORSHIP RESULTS FROM AGREEMENTS WITH STRIDE RITE CORP THE CAMBRIDGE MASS SHOE MAKER AND DENNIS CONNER THE RENOWNED SKIPPER OF THE STARS & STRIPES BOAT WHO ALSO OWNS THE STARS & STRIPES LOGO THE AGREEMENTS ADD TO THE RECENT ROSTER OF CELEBRITIES AND BRAND NAMES THAT SEARS IS LINKING UP WITH IN AN EFFORT TO BOOST SALES AND BOLSTER ITS IMAGE LAST MONTH SEARS ANNOUNCED IT WOULD BE THE EXCLUSIVE SPONSOR OF PHIL COLLINS'S CONCERT TOUR THAT BEGINS IN MAY BUT JUST HOW SEARS WILL BENEFIT THROUGH SPONSORING AN EVENT SUCH AS THE AMERICA'S CUP WHOSE PATRONS' TASTES ARE TYPICALLY MORE UPSCALE THAN THE STORES' APPAREL OFFERINGS IN UNCLEAR SEARS SAYS THAT WHILE YACHTING MAY BE A SPORT PRACTICED MOSTLY BY THE WEALTY THE AMERICA'S CUP EVENT HAS BROAD APPEAL AS DO THE PATRIOTIC THEMES ASSOCIATED WITH THE BOAT AND THE RACE SEARS WILL SPEND 3 MILLION TO BECOME A GOLD SPONSOR OF THE APPAREL CAMPAIGN AS SUCH ITS LOGO WILL APPEAR FROM TIME TO TIME ON ONE OF THE BOAT'S SAILS DURING THE RACES SEARS JOINS GENERAL MOTORS CORP'S CADILLAC DIVISION AS A STARS & STRIPES SPONSOR 9402010033 940201 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 28 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER GENESEE COUNTY INDUSTRIAL DEVELOPMENT AGENCY WILL REDEEM ON MARCH 1 1994 100000 PRINCIPAL AMOUNT OF ITS 6375 REVENUE BONDS 1972 SERIES A DUE MARCH 1 1997 MARINE MIDLAND BANK NEW YORK IS TRUSTEE LEHIGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PA WILL REDEEM ON MARCH 1 1994 ITS 5625 POLLUTION CONTROL REVENUE BONDS 1973 SERIES A DUE MAY 1 2003 MELLON BANK PHILADELPHIA IS TRUSTEE MANITOBA PROVINCE WILL REDEEM ON MARCH 15 1994 ITS 14 3/4 DEBENTURES SERIES 11H DUE MARCH 15 1997 BANK OF MONTREAL TRUST CO NEW YORK IS PAYING AGENT NORTH ANDOVER MASS WILL REDEEM ON MARCH 1 1994 4855000 PRINCIPAL AMOUNT OF ITS 14 RESOURCE RECOVERY REVENUE BONDS SERIES B DUE MARCH 1 1997 STATE STREET BANK & TRUST CO MASS IS TRUSTEE ADA OKLA WILL REDEEM ON MARCH 1 1994 50000 PRINCIPAL AMOUNT OF ITS 770 COMMERCIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS SERIS A 1976 DUE MARCH 1 2001 MELLON BANK PITTSBURGH IS TRUSTEE PARAMOUNT REDEVELOPMENT AGENCY WILL REDEEM ON MARCH 1 1994 680000 PRINCIPAL AMOUNT OF ITS TAX ALLOCATION BONDS 1977 ISSUE DUE MARCH 1 2002 BANK OF AMERICA LOS ANGELES IS FISCAL AGENT STAFFORD COUNTY VA WILL OPTIONALLY REDEEM ON MARCH 1 1994 THE FOLLOWING WATER AND SEWER BONDS SERIES 1971 155000 PRINCIPAL AMOUNT OF 625 BONDS DUE SEPT 1 1994 AND 2260000 PRINCIPAL AMOUNT OF 650 BONDS DUE SEPT 1 2004 THE MUNICIPALITY ALSO WILL REDEEM 635000 PRINCIPAL AMOUNT OF ITS 625 WATER AND SEWER REVENUE AND GENERAL OBLIGATION BONDS SERIES 1968 DUE SEPT 1 1999 SIGNET TRUST CO RICHMOND VA IS ESCROW AGENT ST LOUIS COUNTY CHRISTIAN HOSPITAL NORTHWEST WILL REDEEM ON MARCH 1 1994 1165000 PRINCIPAL AMOUNT OF ITS 6375 FIRST MORTGAGE HOSPITAL BONDS SERIES 1973 DUE MARCH 1 2003 BANK OF TOKYO TRUST CO NEW YORK IS TRUSTEE VIRGIN ISLANDS WILL REDEEM ON MARCH 1 1994 850000 PRINCIPAL AMOUNT OF ITS 8 GENERAL OBLIGATION MATCHING FUND BONDS 1979 SERIES DUE MARCH 1 1998 CORESTATES BANK PHILADELPHIA IS PAYING AGENT NORTHERN STATES POWER CO WILL REDEEM ON FEB 24 1994 THE FOLLOWING FIRST MORTGAGE BONDS 6 1/8 DUE JUNE 1 1995 5 7/8 DUE AUG 1 1996 6 1/2 DUE OCT 1 1997 AND 6 3/4 DUE MAY 1 1998 HARRIS TRUST AND SAVINGS BANK CHICAGO IS TRUSTEE PUBLIC SERVICE ELECTRIC & GAS CO WILL REDEEM ON MARCH 1 1994 ITS 4 5/8 FIRST AND REFUNDING MORTGAGE BONDS DUE 1994 FIRST FIDELITY BANK NJ IS TRUSTEE 9402010032 940201 RIOT BEATING VICTIM'S SUIT AGAINST CITY IS REINSTATED LOS ANGELES RIOT VICTIM REGINALD O DENNY'S CIVIL LAWSUIT AGAINST THE CITY OF LOS ANGELES AND SEVERAL TOP POLICE OFFICIALS HAS BEEN REINSTATED AND ALLOWED TO GO FORWARD US DISTRICT JUDGE W MATTHEW BYRNE JR OVERRULED MOTIONS BY LAWYERS FOR THE CITY OF LOS ANGELES FORMER POLICE CHIEF DARYL GATES AND OTHERS WHICH HAD ASKED THAT THE CASE BE THROWN OUT FOR THE SECOND TIME LATE LAST YEAR THE JUDGE DISMISSED MR DENNY'S CLAIMS ALONG WITH THOSE OF THREE OTHER RIOT BEATING VICTIMS BUT ALLOWED THEM TO AMEND THEIR LEGAL THEORIES AND PRESENT SUPPORTING FACTS MORE FULLY THE OTHER PLAINTIFFS' SUITS ALSO WERE REVIVED EXPERTS HAD BEEN DOUBTFUL OF THE LEGAL STRENGTH OF MR DENNY'S CASE BECAUSE CITIES GENERALLY HAVE NO DUTY TO PROTECT CITIZENS FROM CRIMES THE PLAINTIFF'S LAWYERS SAY THEY SURVIVED THE DISMISSAL MOTION BECAUSE THEY CONVINCED JUDGE BYRNE THAT ONCE A CITY AGREES TO PROVIDE POLICE SERVICES IT CANNOT DO SO IN A DISCRIMINATORY FASHION MR DENNY AND THE OTHER PLAINTIFFS CLAIM THEY WERE BEATEN BECAUSE MR GATES AND OTHERS DELIBERATELY FAILED TO PROVIDE POLICE SUPPORT IN BLACK NEIGHBORHOODS 9402010031 940201 BUSINESS BRIEF MOBIL CORP GRIFFIN OIL FIELD PRODUCTION BEGINS OFFSHORE AUSTRALIA MOBIL CORP SAID THE GRIFFIN FIELD OFFSHORE THE WEST AUSTRALIAN COAST BEGAN PRODUCING MOBIL SAID GROSS OIL PRODUCTION IS AT 80000 BARRELS A DAY OF WHICH ITS SHARE IS 28000 BARRELS DAILY THE FAIRFAX VA COMPANY SAID ITS MOBIL EXPLORATION AND PRODUCING AUSTRALIA UNIT HAS A 35 INTEREST IN THE FIELD THE COMPANY SAID THAT AFTER GAS PRODUCING FACILITIES ARE FULLY COMMISSIONED IN THE NEXT FEW MONTHS GAS PRODUCTION WILL REACH 38 MILLION CUBIC FEET DAILY MAKING MOBIL'S SHARE 133 MILLION CUBIC FEET A DAY MOBIL SAID THE GRIFFIN FIELD IS AUSTRALIA'S FIRST OFFSHORE DEVELOPMENT TO COMMERCIALIZE NATURAL GAS PRODUCED ALONG WITH CRUDE OIL IT IS OPERATED BY BHP PETROLEUM A UNIT OF BROKEN HILL PROPRIETARY CO WHICH HAS A 45 INTEREST WHILE INPEX OF JAPAN HOLDS 20 9402010030 940201 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDIA REDUCING ITS ROLE AS PROMISED IN THE LARGELY STATEOWNED MINING BUSINESS AMENDED LAWS TO LET FOREIGN INVESTORS SET UP WHOLLY OWNED VENTURES FOR PROSPECTING AND MINING AND TO OPEN THESE ACTIVITIES TO THE DOMESTIC PRIVATE SECTOR THE NEW RULES TURN OVER TO INDIA'S STATE GOVERNMENTS THE LICENSING FOR OPERATIONS INVOLVING ALL BUT 11 MINERALS WHICH REQUIRE CENTRAL GOVERNMENT APPROVAL SINCE INDIA LAST MARCH SAID IT PLANNED TO OPEN UP THE INDUSTRY COMPANIES FROM COUNTRIES SUCH AS SOUTH AFRICA AUSTRALIA CANADA AND THE US HAVE EXPRESSED INTEREST INDIA RECENTLY OPENED PETROLEUM NATURAL GAS AND COAL TO PRIVATE AND FOREIGN INVESTMENT THROUGH JOINT VENTURES OPENING THE MINING MONOPOLY WAS PROMPTED BY TECHNOLOGY NEEDS GROWING DEMAND FOR MINERALS AND THE GOVERNMENT'S INABILITY TO FINANCE STEPPEDUP PROSPECTING AND MINING ABOUT 55000 OF THE IG METALL UNION'S 37 MILLION MEMBERS IN WESTERN GERMANY'S METAL AND ENGINEERING INDUSTRIES STAGED SHORT WARNING STRIKES OVER EMPLOYERS' PROPOSED WAGE FREEZE AND BENEFIT REDUCTIONS BAVARIA WAS HIT HARDEST BY WALKOUTS OF 35000 WORKERS AT 80 COMPANIES NEGOTIATIONS WITH THE GESAMTMETALL EMPLOYER GROUP BROKE DOWN LAST WEEK BUT BOTH SIDES INDICATED WILLINGNESS TO RESUME THE TALKS IG METALL SEEKS PAY INCREASES BETWEEN 55 AND 6 OR LESS IN RETURN FOR JOB GUARANTEES 600000 JOBS HAVE BEEN LOST IN THE SECTOR SINCE SPRING 1991 EASTERN GERMAN WORKERS HAVE SEPARATE NEGOTIATIONS BARCELONA'S GRAN TEATRE DEL LICEU SPAIN'S LEADING OPERA HOUSE AND ONE OF THE WORLD'S LARGEST WAS DESTROYED BY FIRE THE NEOCLASSICAL THEATER WHICH OPENED IN 1847 WAS SCHEDULED FOR A 28 MILLION RESTORATION OFFICIALS SAID IT WOULD BE REBUILT THE THEATER'S DIRECTOR SAID A SPARK FROM A REPAIR WORKERS' BLOW TORCH IGNITED A CURTAIN FLAMES SPREAD FROM THE STAGE TO ENGULF THE 3000SEAT AUDITORIUM CAUSING MUCH OF THE ROOF TO COLLAPSE THE THEATER SURVIVED A FIRE IN APRIL 1861 AND AN INCIDENT IN 1893 WHEN AN ANARCHIST DROPPED TWO BOMBS FROM THE UPPER GALLERY DURING A PERFORMANCE KILLING 20 PEOPLE THE LAUNCHING OF THE FIRST ALLJAPANESEMADE SATELLITELOFTING ROCKET WAS POSTPONED MONDAY BECAUSE OF STORMY WEATHER JAPAN'S SPACE AGENCY SAID IT COULD TRY AGAIN NO SOONER THAN WEDNESDAY TO SEND UP THE HII FROM THE SOUTHERN ISLAND OF TANEGASHIMA THE HII THE COUNTRY'S FIRST ROCKET CAPABLE OF PUTTING BIG SATELLITES INTO ORBIT WILL CARRY EQUIPMENT TO TEST REENTRY HEAT SHIELDS OF SPACECRAFT PURCHASING POWER IN 11 OF THE 12 EUROPEAN UNION NATIONS LAGGED BEHIND THAT IN THE US AND JAPAN IN 1992 THE EU SAID THE DATA REFLECT GROSS DOMESTIC PRODUCT PER CAPITA BASED ON PRICES FOR COMPARABLE GOODS ONLY LUXEMBOURG EXCEEDED JAPAN IN PURCHASING POWER BUT IT STILL TRAILED THE US NEXT IN THE RANKING WERE FRANCE BELGIUM DENMARK GERMANY ITALY THE NETHERLANDS BRITAIN SPAIN IRELAND PORTUGAL AND GREECE THE EU ALSO SAID ITS GDP GREW A REVISED 116 TO 605 BILLION IN 1992 COMPARED WITH 238 TO 512 BILLION IN THE US AND 131 TO 316 BILLION IN JAPAN A DARMSTADT COURT GRANTED PROSECUTORS' REQUEST TO ACQUIT THREE GERMANS OF HELPING IRAQ MAKE CHEMICAL WEAPONS IN VIOLATION OF EXPORT LAWS ON SALES OF TECHNOLOGY AND CHEMICALS PROSECUTORS COULDN'T PROVE THE DEFENDANTS KNEW IRAQ WOULD USE THE TECHNOLOGY TO MAKE CHEMICAL ARMS THE THREE WHO HAD ARGUED THAT THE EQUIPMENT WAS MEANT FOR MAKING PESTICIDES FOR CIVILIAN USE WERE AMONG 10 PEOPLE CHARGED IN ONE OF GERMANY'S BIGGEST POSTGULF WAR CASES OF EXPORTS LINKED TO IRAQI ARMS PROGRAMS THREE DEFENDANTS REMAIN CHARGED WITH SELLING IRAQ EQUIPMENT FOR FILLING BOMBS AND SHELLS WITH POISON GAS FOUR OTHERS WERE ACQUITTED PRESIDENT GONZALO SANCHEZ DE LOZADA SAID BOLIVIA WOULD SELL TO PRIVATE INVESTORS AS MUCH AS 50 OF THE LARGEST STATEOWNED COMPANIES HE SAID PROCEEDS COULD TOTAL 8 BILLION TO BE ALLOCATED TO SOCIAL SPENDING INCLUDING HOUSING HEALTH AND EDUCATION THE FIRST STAKES ARE TO BE SOLD IN COMMUNICATIONS OIL POWER RAILWAY AND STEEL COMPANIES AND THE NATIONAL AIRLINE LLOYD AEREO BOLIVIANO MR SANCHEZ DE LOZADA SAID THE PLAN WOULD PROVIDE THE ENGINE FOR CONTINUED ECONOMIC GROWTH AND CREATE AS MANY AS 500000 JOBS DURING HIS FOURYEAR TERM CONGRESS HAD PASSED A BILL ALLOWING THE PROGRAM WHICH THE PRESIDENT TERMED CAPITALIZATION NOT PRIVATIZATION OF ENTERPRISES HE SAID THE GOVERNMENT COULDN'T AFFORD TO OPERATE EFFICIENTLY BOLIVIA'S BIGGEST LABOR FEDERATION OPPOSES THE SELLOFFS BUT A ONEDAY GENERAL STRIKE IT STAGED LAST WEEK TO PROTEST THE PROGRAM WON ONLY LIMITED SUPPORT CUBA WHICH HAS MADE TOURISM A PRIORITY TO HELP RESCUE THE ECONOMY SAID THE SECTOR WAS GROWING AT LEAST 30 A YEAR WITH IMPROVED SERVICE THE NUMBER OF FOREIGN VISITORS IN 1993 JUMPED 43 TO 700000 FROM 1992 AND GENERATED REVENUE OF MORE THAN 660 MILLION A SURVEY OF BRITISH WOMEN BY GOOD HOUSEKEEPING MAGAZINE FOUND THAT ALMOST HALF PREFERRED A DELICIOUS RESTAURANT MEAL TO MAKING LOVE 9402010029 940201 CHRYSLER TO CUT LEASE PRICE ON ITS LH MIDSIZE SEDANS DETROIT CHRYSLER CORP WILL OFFER FOR THE FIRST TIME LOWERPRICED LEASES ON ITS BREADANDBUTTER LH MIDSIZE SEDANS AND IT BEGAN DISCOUNTING MINIVANS BY AS MUCH AS 2600 TO PREEMPT FORD MOTOR CO'S FORTHCOMING WINDSTAR VAN CHRYSLER OFFICIALS SAID THEY DECIDED TO BEGIN OFFERING MORE AGGRESSIVELY PRICED LEASES ON THE DODGE INTREPID CHRYSLER CONCORDE AND EAGLE VISION LH SEDANS TO RESPOND TO GROWING DEMAND FOR LEASE DEALS IN THE MIDPRICED MARKET FORD GENERAL MOTORS CORP AND JAPANESE AUTO MAKERS ARE HEAVILY PROMOTING LOWPAYMENT LEASES TO BOOST SALES CHRYSLER ALSO HAS HEFTY SUPPLIES OF UNSOLD CONCORDES AND VISIONS THAT A LOWERPRICED LEASE COULD HELP CLEAR OUT BUT ACCORDING TO NEWSLETTER WARD'S AUTOMOTIVE REPORT CHRYSLER HAD A 62DAY SUPPLY OF UNSOLD INTREPIDS AS OF DEC 31 WELL WITHIN THE 60TO65DAY SUPPLY RANGE AUTO MAKERS CONSIDER IDEAL CHRYSLER'S DECISION TO STEP UP MINIVAN DISCOUNTS LARGELY IN THE FORM OF LOWER PRICES FOR OPTION PACKAGES REPLAYS A STRATEGY THE NO 3 US AUTO MAKER HAS USED BEFORE TO HAMMER CHALLENGERS TO ITS LEADERSHIP IN THE MINIVAN MARKET BY CUTTING ITS MINIVANS' PRICES AND ADVERTISING A NATIONAL MINIVAN SALE THAT ENDS MAY 31 CHRYSLER HOPES TO SIPHON AWAY CUSTOMERS WHO MIGHT BUY THE NEW WINDSTAR WHEN IT GOES ON SALE MARCH 24 IT'S NOT UNEXPECTED A FORD SPOKESMAN SAID IT GIVES US AN OPPORTUNITY TO SEE WHAT CHRYSLER'S PLANS ARE 9402010028 940201 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR TEMPORARYHELP CHARGES START TO RISE SPURRED BY CLIMBING DEMAND TEMPORARYHELP FIRMS SAY ORDERS ZOOM AS EMPLOYERS USE TEMPS FOR MUCH OF THEIR INCREASED WORKPLACE NEEDS FOURTHQUARTER PLACEMENTS BY BABICH & ASSOCIATES A DALLAS TEMP FIRM WERE DOUBLE THE YEAREARLIER LEVEL AT HARTMERRELL PERSONNEL CONSULTANTS ROCHESTER NY REVENUE HAS GROWN THREEFOLD SINCE SEPTEMBER DR HORTON A TEXAS HOME BUILDER USES THREE PARTTIME OR TEMPORARY OFFICE WORKERS UP FROM ONE A YEAR AGO THE DALLAS FEDERAL RESERVE BANK SAYS DEMAND FOR TEMPS AND RESULTING PRICE HIKES ARE PARTICULARLY STRONG IN ITS AREA FIRMS LIKE PANCOAST TEMPORARY SERVICES PITTSBURGH BLAME HIGHER WORKERSCOMPENSATION COSTS FOR SOME PRICE BOOSTS BUT PRICE HIKES OFTEN MEAN IMPROVED PROFIT MARGINS EVEN AS WAGES RISE SAYS THE NATIONAL ASSOCIATION OF TEMPORARY SERVICES PORTLAND GENERAL ELECTRIC AND BANK OF AMERICA TRIM TEMP USE MANY CALIFORNIA COMPANIES AREN'T HIRING WORKERS TEMPORARY OR OTHERWISE GROUSES THOR GROUP A LOS ANGELES TEMP FIRM WAGES IN THE FREEZE AUTOMAKER POLICIES VARY ON MAKEUP PAY MOST GM AND FORD WORKERS WHO WERE IDLED BY THE RECENT SEVERE COLD SNAP IN MICHIGAN OHIO AND ELSEWHERE GOT 80 OF THEIR BASIC PAY UNDER UAW CONTRACTS MITSUBISHIOWNED DIAMOND STAR MOTORS LET EMPLOYEES DO MAINTENANCE WORK OR TAKE VACATION SOME 70 OF WORKERS WHO SHOWED UP DECIDED TO GO HOME NISSAN PAID WORKERS AT ITS SMYRNA TENN PLANT 80 OR MORE IF THEY SHOWED UP AND COUNTED ABSENCES AS VACATION TIME TOYOTA WON'T PAY WORKERS FOR FIVE DAYS OF LOST WORK AT GEORGETOWN KY BUT CONSIDERS GIVING THEM LOANS HONDA OFFERS AS OPTIONS VACATION PAY SATURDAY MAKEUP WORK OR A 350 LOAN AT 1 INTEREST ARRANGED BY CREDITUNION PEOPLE PLACED IN PLANT CAFETERIAS SUBARU ISUZU HAS NOT DECIDED WHAT TO DO BEHOLDEN TO NONE FREELANCE COMMUNICATORS PROLIFERATE GERALD BASTARACHE WHOSE PUBLIC RELATIONS JOB WAS CUT AT A TRADE GROUP IS A SHORTTERM WRITING CONSULTANT TO THE INTELLIGENT VEHICLE HIGHWAY SOCIETY WHILE HE SEEKS PERMANENT WORK WHEN YOU DOWNSIZE YOUR STAFF THE WORK STILL HAS TO BE DONE HE SAYS GARDNER BATES LEFT A TIRE COMPANY TWO YEARS AGO HE HAS WRITTEN SOME NEWSLETTERS SPEECHES AND NEWS RELEASES LIKE THEIR FOREBEARS LANCEBEARING KNIGHTS WHO FOUGHT FOR ANY KING THEY WISHED MODERN FREELANCERS ARE MORE OBJECTIVE AND CREATIVE THAN STAFF WRITERS SAYS FLUKE CORP WHICH REHIRED SOME FIRED WRITERS AS CONTRACTORS MANY WRITERS ENJOY THE INDEPENDENCE THE MORE I FREELANCE THE MORE I'M HAPPY SAYS CHARLES SNYDER A FORMER KIPLINGER EDITOR WHO WRITES BUSINESS PUBLICATIONS CITING SURGING DEMAND FOR WRITERS FROM PAYROLLSLASHING EMPLOYERS MICHAEL BAN'S CHICAGOBASED PALADIN COS OPENED A SECOND TEMPS OFFICE IN SAN FRANCISCO IN NOVEMBER EXPLOITED IN THE US A GROUP OF MEXICAN WORKERS START COLLECTING BACK PAY THE LABOR DEPARTMENT HAS BEGUN DISTRIBUTING FUNDS TO SOME 400 FORMER MEXICAN IMMIGRANTS WHO WERE SMUGGLED INTO THE US IN THE 1980S BY THE GRIFFITHIVES FLOWER RANCH SOMIS CALIF THEY WORKED LONG HOURS SOMETIMES WITHOUT ANY WAGES AND WERE DOCKED FOR FOOD AND OTHER CHARGES EDWIN IVES THE RANCH OWNER GOT A PRISON SENTENCE AND HAD TO PAY MORE THAN 1 MILLION IN RESTITUTION A RIGHT TO KNOW MAKING GOOD ON A CLINTON CAMPAIGN PLEDGE THE FEDERAL CENTERS FOR DISEASE CONTROL THIS MONTH WILL ISSUE GUIDELINES URGING HOSPITALS TO NOTIFY FIRE FIGHTERS PARAMEDICS AND OTHER EMERGENCYRESPONSE WORKERS IF THEY ARE EXPOSED TO AIDS AND OTHER INFECTIOUS DISEASES A UNION OF THEIR OWN WORKERS AT ELECTROMATION INC ELKHART IND VOTED FOR TEAMSTERS REPRESENTATION THE NLRB ACTING ON A TEAMSTERS COMPLAINT RULED IN DECEMBER 1992 THAT THE COMPANY'S ACTION COMMITTEES WHOSE WORKER MEMBERS WERE PICKED BY MANAGEMENT WERE ILLEGAL RAISING UNION DUES A TEAMSTERS PROPOSAL RAISES A RUCKUS REFORMIST PRESIDENT RON CAREY SETS OFF A FIRESTORM WITH HIS PLAN FOR A RANKANDFILE VOTE ON BOOSTING DUES 25 TO REPLENISH DEPLETED FUNDS THE HIKE WOULD RAISE 50 MILLION A YEAR IN STRIKE MONEY WITH RICHER STRIKE BENEFITS THESE DAYS THE FUND IS PROJECTED TO GO BROKE IN JUNE THE PLAN WOULD ALSO RESTOCK THE UNION'S GENERAL FUND PARTLY TO FINANCE INCREASED ORGANIZING TWO TEAMSTERS BOARD MEMBERS VOTED AGAINST THE FORMULA OTHER OPPONENTS INSIST THE TEAMSTERS CONSTITUTION REQUIRES A SPECIAL DELEGATES' CONVENTION TO VOTE ON A DUES HIKE OTHERWISE A SMALL PERCENTAGE OF MEMBERS WHO COULD NOT KNOW THE TRUTH MIGHT VOTE UNNECESSARILY FOR A DUES INCREASE SAYS MICHAEL MORONEY DEPUTY TRUSTEE OF LOCAL 295 IN NEW YORK RV DURHAM A NORTH CAROLINA TEAMSTER BEATEN BY MR CAREY FOR PRESIDENT TWO YEARS AGO ACCUSES HIM OF EXCESSES THAT DRAIN THE UNION'S COFFERS THE CHECKOFF THE AFLCIO SAYS IT WILL WITHHOLD RENOMINATION ENDORSEMENT OF REP DAN ROSTENKOWSKI D ILL A LONGTIME UNION FRIEND WHO VOTED FOR NAFTA OUTTASKING USING SPECIALIZED VENDORS IS MORE WIDESPREAD THAN OUTSOURCING USING A SINGLE FULLSERVICE VENDOR THE INTERNATIONAL FACILITY MANAGEMENT ASSOCIATION REVEALS 9402010027 940201 INFINITY WINS FCC'S NOD DESPITE GRIPES OVER STERN WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION VOTED 21 TO CLEAR INFINITY BROADCASTING CORP'S PURCHASE OF A LOS ANGELES RADIO STATION ACCORDING TO COMMISSIONER JAMES H QUELLO WHO HAD TRIED TO BLOCK THE TRANSFER BECAUSE OF REPEATED COMPLAINTS OF INDECENCY AGAINST INFINITY RADIO HOST HOWARD STERN THE FCC IS EXPECTED TO ANNOUNCE THE ACTION TODAY ALONG WITH A 400000 FINE AGAINST INFINITY FOR SIX ALLEGED INDECENCY VIOLATIONS BY MR STERN INFINITY IS ALREADY CONTESTING MORE THAN 1 MILLION IN FCC FINES STEMMING FROM MR STERN'S SHOW INFINITY IS BUYING KRTHFM IN LOS ANGELES FROM BEASLEY BROADCAST GROUP OF NAPLES FLA FOR 110 MILLION IT IS STILL SEEKING FCC CLEARANCE FOR ITS PURCHASE OF WASHINGTON STATIONS WPGC AM/FM FROM COOK INLET RADIO PARTNERS FOR ABOUT 60 MILLION INFINITY HAD SOUGHT FCC CLEARANCE OF THE DEALS BEFORE JAN 1 BUT THE COMMISSIONERS DELAYED SAYING THEY NEEDED A THOROUGH REVIEW OF MR STERN'S ONAIR RECORD INFINITY HAS BEEN DUELING WITH THE FCC FOR YEARS OVER MR STERN'S SHOW OF WHICH MR QUELLO HAS BEEN AN OUTSPOKEN CRITIC 9402010026 940201 CREDIT RATINGS BORDEN INC NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS RATING ON THIS DIVERSIFIED FOOD PROCESSOR'S SENIOR UNSECURED DEBT TO BAA2 FROM SINGLEA3 SAYING THAT ANY SUSTAINABLE AND SIGNIFICANT RECOVERY OF BORDEN'S CASH FLOW AND DEBT PROTECTION MEASUREMENTS WILL TAKE SOME TIME TO ACHIEVE THE CHANGE AFFECTS 188 BILLION OF LONGTERM DEBT MOODY'S ALSO SAID THAT DESPITE FOUR RESTRUCTURING CHARGES OVER THE PAST FOUR YEARS BORDEN'S OPERATING EARNINGS CONTINUED TO DECLINE 9402010025 940201 BUSINESS BRIEF MCKESSON CORP FIRM TO CUT STAKE IN UNIT BY SALE OF CONVERTIBLE DEBT MCKESSON CORP SAID IT WILL LOWER ITS STAKE IN ITS ARMOR ALL PRODUCTS CORP UNIT BY OFFERING 140 MILLION PRINCIPAL AMOUNT OF DEBENTURES EXCHANGEABLE INTO ARMOR ALL COMMON SHARES MCKESSON WHOSE PRINCIPAL BUSINESS IS HEALTHCARE SERVICES HAS BEEN STEADILY LOWERING ITS STAKE IN ARMOR ALL WHICH MAKES CARCARE PRODUCTS AS WE CONTINUE TO FOCUS MORE ON THE HEALTHCARE BUSINESS WE FEEL ARMOR ALL WILL HAVE A BETTER FUTURE AS AN INDEPENDENT COMPANY A MCKESSON SPOKESMAN SAID IN SAN FRANCISCO MCKESSON SOLD 17 OF ITS STAKE IN ARMOR ALL IN 1986 AND ANOTHER 26 OF THE COMPANY LAST YEAR CURRENTLY MCKESSON HOLDS ABOUT 12 MILLION ARMOR ALL SHARES OR 57 OF THE 21 MILLION SHARES OUTSTANDING 9402010021 940201 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JANUARY 19 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9402010020 940201 FOREIGN FORAYS PENNEY PUSHES ABROAD IN UNUSUALLY BIG WAY AS IT PURSUES GROWTH IT IS ADDING STORES IN MEXICO RETAIL SPACE IN JAPAN OTHER PLACES ARE STUDIED BUILDING UP PRIVATE BRANDS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL TERRY S PRINDIVILLE GAZED AT THE WOMEN JAMMED CHEEKTOJOWL IN A BUSTLING SHOP IN SHANGHAI AND SAW OPPORTUNITY ALL THIS TUMULT THE JC PENNEY CO EXECUTIVE THOUGHT TO BUY LINGERIE AT HIGHER PRICES AND LOWER QUALITY THAN HIS COMPANY COULD OFFER PENNEY ISN'T SELLING GOODS IN CHINA YET BUT MR PRINDIVILLE AND HIS STAFF HOPE TO CHANGE THAT THEY ARE MASTERMINDING AN AMBITIOUS EXPANSION THAT IS TRANSFORMING STODGY OLD JC PENNEY INTO A MAJOR INTERNATIONAL RETAILER ALREADY PENNEY STORES ARE UNDER CONSTRUCTION IN MEXICO THE COMPANY WILL ADD NEARLY ONE MILLION SQUARE FEET OF RETAIL SPACE IN JAPAN NEXT FALL BY OFFERING ITS PRIVATELABEL APPAREL IN 300 DEPARTMENT STORES OWNED BY AOYAMA TRADING CO JAPAN'S LARGEST RETAILER OF MEN'S SUITS IT HAS BEEN SCOUTING SITES IN CHILE AFTER SURVEYS SHOWED THAT MANY CHILEANS ARE SO EAGER TO BUY AMERICAN GOODS THAT THEY REGULARLY FLY TO THE US TO SHOP LICENSED PENNEY SHOPS ARE RACKING UP IMPRESSIVE SALES IN THE UNITED ARAB EMIRATES AND SINGAPORE IT IS TALKING WITH POTENTIAL LICENSEES INCLUDING ONE IN PORTUGAL THAT IS ALREADY SELLING PENNEY PRIVATELABEL GOODS AND ANOTHER IN GREECE IT IS CONSIDERING ANCHORING A NEW REGIONAL MALL IN TAIWAN IT IS LOOKING INTO THAILAND AND INDONESIA IT OFFERS CATALOGS IN ICELAND BRAZIL AND RUSSIA AND IS TRANSLATING A TRIMMEDDOWN CATALOG INTO SPANISH TO TAP THE LATIN AMERICAN MARKET PENNEY ISN'T ALONE IN LOOKING BEYOND THE OVERBUILT US MARKET THE NORTH AMERICAN FREE TRADE AGREEMENT IS SPURRING MANY US RETAILERS TO ENTER CANADA AND MEXICO WALMART STORES INC RECENTLY SPENT AN ESTIMATED 300 MILLION TO BUY 120 STORES FROM WOOLWORTH CORP AND GAIN A FOOTHOLD IN CANADA FOR EXAMPLE AND LED BY SPECIALTY RETAILERS SUCH AS TOYS R US INC EVEN TRADITIONALLY CAUTIOUS DEPARTMENTSTORE OPERATORS ARE OVERCOMING THEIR PHOBIA ABOUT GOING OVERSEAS NORDSTROM INC IS INVESTIGATING JOINTVENTURE PROSPECTS IN CHINA DILLARD DEPARTMENT STORES INC IS ENTERING MEXICO AND SAKS FIFTH AVENUE AND FEDERATED DEPARTMENT STORES INC'S BLOOMINGDALE'S DIVISION ARE STUDYING EUROPE BUT FEW HAVE GONE AFTER FOREIGN MARKETS IN AS MANY WAYS AS PENNEY AND WHAT HAPPENS TO THE PLANO TEXAS COMPANY ABROAD MAY HELP SHAPE ITS AND THE INDUSTRY'S FUTURE PENNEY'S RECENT FOREIGN THRUST BEGAN LESS THAN THREE YEARS AGO WHEN A GROUP OF MANAGERS URGED THE COMPANY TO CREATE AN INTERNATIONAL DIVISION GIVEN PENNEY'S TRADITIONAL CAUTION AND HISTORY OF FOREIGN BLUNDERS THEY FACED SOME OPPOSITION BUT THE GROUP INCLUDING MR PRINDIVILLE AN EXECUTIVE VICE PRESIDENT OF THE COMPANY AND ALFRED F LYNCH NOW THE DIVISION'S CHIEF EXECUTIVE ARGUED PERSUASIVELY THAT WITH US OPPORTUNITIES DWINDLING THE COMPANY HAD TO TAKE THE FOREIGN GAMBLE TO STAY COMPETITIVE AND KEEP GROWING AND THEY SAW ABUNDANT OPPORTUNITIES IN OTHER COUNTRIES WHERE MANY MERCHANTS WERE LESS SOPHISTICATED AND PENNEY COULD CAPITALIZE ON ITS STRONG PRIVATE BRANDS PROBLEMS CROPPED UP OF COURSE THE COLLAPSE OF THE SOVIET UNION AFTER THE ABORTIVE COUP AGAINST MIKHAIL GORBACHEV SCUTTLED ONE JOINT VENTURE A YEAR OF NEGOTIATIONS TO BUY A RETAIL CHAIN IN HUNGARY FAILED AFTER THE GOVERNMENT RAISED THE PRICE REPEATEDLY CHINESE TARIFFS REMAIN A BARRIER TO DEVELOP MALLS ITS WAY IN MEXICO PENNEY HAD TO PERSUADE MEXICAN DEVELOPERS TO WORK WITH US DEVELOPERS AND POTENTIAL PITFALLS ABOUND FOREIGNEXCHANGE FLUCTUATIONS CAN DEVOUR PROFITS AND SOCIAL CULTURAL AND LEGAL DIFFERENCES CAN CAUSE PROBLEMS IN THE CASE OF DEPARTMENTSTORE OPERATORS SUCH AS PENNEY WHERE BY DEFINITION YOU'RE OFFERING A BROAD ASSORTMENT PETER MONASH A RETAIL CONSULTANT SAYS YOU HAVE TO TAKE CULTURAL DIFFERENCES INTO ACCOUNT MORE THAN SPECIALTY RETAILERS DO FOR DECADES US RETAILERS EXPANDED OVERSEAS SPARINGLY MANY STILL SAW OPPORTUNITIES IN THE VAST AMERICAN MARKET AND CITED SUCH FOREIGN FLOPS AS THOSE OF SEARS ROEBUCK & CO IN SOUTH AMERICA AND FEDERATED IN SPAIN A FAILED ACQUISITION OF RETAIL CHAINS IN ITALY AND BELGIUM IN THE LATE 1970S DIDN'T INSPIRE CONFIDENCE AT PENNEY EITHER IN BELGIUM PENNEY'S PLAN TO BUILD GIANT HYPERMARTS WAS THWARTED BY THE LOCAL EQUIVALENT OF ZONING BOARDS STACKED WITH COMPETING MERCHANTS THAT LEFT PENNEY WITH SMALL OUTDATED STORES IN CONGESTED DOWNTOWN AREAS WHILE COMPETITORS BUILT SPACIOUS SUBURBAN STORES THERE WAS NO WAY WE COULD GROW THE BUSINESS SAYS NARINA VAIRA A VICE PRESIDENT OF PENNEY'S INTERNATIONAL DIVISION PENNEY ALSO HAD ASSUMED IT COULD TURN AROUND THE CHAINS BY SLASHING BLOATED PAYROLLS AND RAISING PRODUCTIVITY ONLY TO FIND THAT LABOR LAWS IN BOTH COUNTRIES MADE LAYOFFS PROHIBITIVELY EXPENSIVE AND TIMECONSUMING BY 1980 PENNEY HAD BAILED OUT OF ITALY IN 1987 THE COMPANY SOLD ITS 52STORE BELGIAN CHAIN AND TOOK A 16 MILLION CHARGE THE EXPERIENCE SCARRED THE COMPANY WILLIAM R HOWELL PENNEY'S CHAIRMAN AND CHIEF EXECUTIVE SAID HE DIDN'T SEE ANY REASON TO INVEST OVERSEAS MOST MANAGERS DIRECTLY INVOLVED IN THE VENTURES RETIRED OR LEFT SAYS M ALLEN HALE NOW A VICE PRESIDENT OF THE INTERNATIONAL DIVISION A SMALL EXPORTSALES OPERATION BECAME AN UNWANTED STEPCHILD YOU COULDN'T GET ANY INTEREST IN IT FROM UPSTAIRS RECALLS MR HALE WHO THEN WORKED IN IT BUT MR LYNCH SAYS HE AND SOME OTHERS KEPT RAISING THE ISSUE OF THE WORLD OUT THERE COMPANY STUDIES SHOWED THAT MEXICANS TRAVELING NORTH TO SHOP ACCOUNTED FOR AS MUCH AS 60 OF SALES AT THE 22 PENNEY STORES NEAR THE BORDER THE STORES WERE AMONG THE COMPANY'S TOP SELLERS ANOTHER POWERFUL ARGUMENT FOR LOOKING ABROAD WAS THAT THE US WAS REALLY OVERSTORED MR PRINDIVILLE SAYS AND PENNEY WAS ALREADY IN MOST BIG MARKETS BUT THE GROUNDWORK FOR THE COMPANY'S CHANGE IN ATTITUDE WAS LAID WITH A SNUB FROM LIZ CLAIBORNE INC SQUEEZED BETWEEN DISCOUNTERS AND FASHIONABLE SPECIALTY STORES IN THE EARLY 1980S MR HOWELL WAS TRYING TO MOVE PENNEY UPSCALE BUT THE WOMEN'S APPAREL MAKER TURNED UP ITS NOSE AT PENNEY'S MIDDLEBROW IMAGE AS DID ESTEE LAUDER ELIZABETH ARDEN AND MANY OTHERS SO PENNEY FOCUSED ON TURNING ITS OWN PRIVATE LABELS HUNT CLUB WORTHINGTON STAFFORD ST JOHN'S BAY ARIZONA JEANS AND JACQUELINE FERRAR INTO BRAND NAMES IT DESIGNED EXCLUSIVE LINES TO ITS OWN SPECIFICATIONS PURSUED QUALITY BY REJECTING SUBSTANDARD GOODS AND ADVERTISED THE LINES THE EFFORT PAID OFF AT HOME AND ABROAD EVEN AS THE COMPANY WAS DUMPING ITS FAILED EUROPEAN VENTURES ITS PRIVATE BRANDS WERE STARTING TO APPEAL TO FOREIGN RETAILERS UNLIKE MOST MASS MERCHANDISERS PENNEY EXECUTIVES HAVE CREATED SUCH A STRONG BRAND FRANCHISE HERE IT'S A BIG COMPETITIVE ADVANTAGE SAYS L WAYNE HOOD A RETAIL ANALYST AT PRUDENTIAL SECURITIES PENNEY'S HOUSE BRANDS NOW FORM THE BACKBONE OF ITS OVERSEAS BUSINESS IN THE SPRING OF 1990 THE COMPANY FORMED A SMALL GROUP INITIALLY JUST MESSRS PRINDIVILLE LYNCH AND HALE TO STUDY FOREIGN PROSPECTS ONE MORE TIME MR HOWELL SENT THE THREE MEN ON AN EYEOPENING 21DAY TOUR OF SEVEN COUNTRIES IN EAST BERLIN SHORTLY AFTER THE WALL FELL YOU'D LOOK IN A STORE WINDOW AND SEE ONE SHIRT SITTING THERE WITH DUST ON IT MR LYNCH SAYS AT AN ENCLOSED MALL NEAR ISTANBUL THE THREE MEN SAW JUST HOW POORLY LOCAL RETAILERS ARRANGED RELATED PRODUCTS SUCH AS LINGERIE AND WOMEN'S CLOTHING THEY HAD LINGERIE NEXT TO PLUMBING EQUIPMENT MR LYNCH RECALLS ALL OVER EUROPE THEY NOTED THE LACK OF COORDINATED HOME FURNISHINGS BACK IN TEXAS THEY REPORTED THAT PENNEY WAS LEAGUES AHEAD IN MARKETING SOPHISTICATION IN HOW TO DISPLAY PRODUCTS HOW TO LOCATE AISLES TO DIRECT AND TAKE ADVANTAGE OF CUSTOMER TRAFFIC HOW TO GROUP PRODUCTS HOW IN SHORT TO DEVELOP AN ENVIRONMENT THAT INVITES THE CUSTOMER TO SHOP MR LYNCH SAYS MR HOWELL AND SENIOR MANAGERS DECIDED TO TRY AGAIN BUT THIS TIME PENNEY WOULDN'T JUST GO IN AND BUY EXISTING RETAIL CHAINS IN FACT IT AVOIDS BUYING PROPERTY AT ALL IT WOULD LINK UP WITH LOCAL PARTNERS WHO WOULD KNOW FOR EXAMPLE THAT CHILEAN MEN CONSIDER SHORT PANTS SUITABLE ONLY FOR BOYS AND THAT ABU DHABI WOMEN DESPITE WEARING FULLLENGTH ROBES OUTDOORS LIKE PARTY DRESSES AND IT WOULD TAILOR ITS RETAILING TO EACH COUNTRY WHILE BANKING ON WHAT IT CONSIDERED ITS STRONG SUITS PRIVATE LABELS AND MERCHANDISE PRESENTATION SO PENNEY INSISTED THAT LIWA TRADING A LICENSEE THAT OPENED ITS FIRST PENNEY COLLECTION STORE IN DUBAI 15 MONTHS AGO AND PLANS 10 MORE STORES IN THE MIDEAST BY 1998 SEND PEOPLE TO DALLAS TO LEARN PENNEY'S MERCHANDISING TRAINING AND ACCOUNTING METHODS LIWA NOT ONLY HAD TO USE PENNEY'S STORE FIXTURES BUT ALSO HAD TO HIRE ITS CONTRACTOR TO INSTALL THEM MR HALE SAYS SEVERAL TIMES A YEAR HE ADDS PENNEY INSPECTS FOREIGN STORES TO MAKE SURE THAT THEIR DISPLAYS STAY WITHIN ITS GUIDELINES THE LICENSEES MR PRINDIVILLE SAYS MUST AGREE TO REPLICATE THE WAY THE MERCHANDISE IS PRESENTED IN THE US PENNEY'S INITIAL LIST OF 30 PROMISING COUNTRIES WAS WHITTLED TO 20 AFTER ITS EXECUTIVES GAUGED THEIR POLITICAL AND ECONOMIC STABILITY WHICH ELIMINATED MUCH OF THE EAST BLOC ABILITY TO REPATRIATE PROFITS ECONOMIC GROWTH AND DEMOGRAPHICS EVENTUALLY THE COMPANY SETTLED ON FOUR FUNDAMENTAL STRATEGIES IN UNDERSTORED COUNTRIES WHERE REAL ESTATE WAS AFFORDABLE LAWS ALLOWED FOREIGN OWNERSHIP AND LABOR AND CONSTRUCTION REGULATIONS WOULDN'T HAMSTRING EXPANSION PENNEY WOULD OPEN AND OPERATE STORES ITSELF IN MORESATURATED MARKETS OR WHERE REGULATIONS OR OTHER PROBLEMS MAKE IT TOO TOUGH TO RUN ITS OWN STORES PENNEY WOULD LICENSE LOCAL RETAILERS TO OPERATE JC PENNEY COLLECTION STORES WHICH SELL ITS BRANDED APPAREL AND OTHER SOFT GOODS IN STILLTOUGHER MARKETS SUCH AS SINGAPORE AND JAPAN WHERE HIGH PROPERTY COSTS AND REGULATIONS MAKE IT ALMOST IMPOSSIBLE TO BUILD LARGE STORES PENNEY WOULD LICENSE OTHER RETAILERS TO OPERATE INSTORE SHOPS SELLING SPECIFIC BRANDED LINES SUCH AS THE HUNT CLUB SHOP IN ROBINSON'S DEPARTMENT STORE IN SINGAPORE AND IN PLACES WITH STRONG CONSUMER DEMAND BUT INSURMOUNTABLE BARRIERS PENNEY WOULD SELL THROUGH CATALOGS USUALLY DISTRIBUTING GOODS THROUGH A THIRD PARTY THAT WOULD TAKE ORDERS BUY THE GOODS FROM PENNEY IN THE US AND SHIP THEM MEXICO REPRESENTS EASILY THE BIGGEST EFFORT AND BIGGEST GAMBLE BY LATE 1996 PENNEY PLANS TO OPERATE FOUR STORES IN MEXICO CITY AND ONE EACH IN GUADALAJARA MONTERREY AND LEON THE STORES WILL AVERAGE 165000 SQUARE FEET COMPARABLE TO PENNEY'S LARGEST US STORES AND UNLIKE COMPETITORS SUCH AS KMART CORP PRICE/COSTCO INC AND WALMART PENNEY DECIDED THAT IT DOESN'T NEED A LOCAL PARTNER IN MEXICO BASED ON OUR EXPERIENCE ON THE BORDER MR PRINDIVILLE SAYS WE FELT LIKE WE'D BE ABLE TO GO IN AND RUN STORES JUST LIKE WE RUN THEM IN CALIFORNIA OR ANY OTHER PLACE SUCH TALK REEKS OF HUBRIS TO SOME ANALYSTS I THINK YOU'RE MAKING A MISTAKE IN MEXICO WHEN YOU DON'T JOINTVENTURE WITH LOCAL PARTNERS SAYS DAVID MM ROSEN WHO DIRECTS EMERGINGMARKETS RESEARCH AT KIDDER PEABODY & CO PARTICULARLY WITH SOMEONE WHO HAS KNOWLEDGE OF CREDIT AND THE EXTENSION OF CREDIT IN MEXICO SALES ON CREDIT ARE EXPECTED TO BOOM FROM THE CURRENT 5 OF MEXICAN RETAIL VOLUME AS THE HIGH INTEREST RATES ON CREDIT CARDS CONTINUE TO DROP PENNEY PLANS TO ISSUE CREDIT CARDS IN MEXICO AND MR ROSEN NOTES THAT MEXICO'S CREDIT AND DISCLOSURE LAWS DIFFER SIGNIFICANTLY FROM THOSE IN THE US AND THAT THE COUNTRY LACKS ANY ESTABLISHED AGENCIES THAT CAN INSTANTLY CHECK CREDIT RECORDS KENNETH RUSSO PENNEY'S VICE PRESIDENT OF SOURCING SAYS THE COMPANY HAS COMPILED MARKETING STUDIES FOCUSGROUP REPORTS AND SURVEYS THAT INDICATE THE MEXICAN CONSUMER IS VERY FAMILIAR WITH OUR US PRODUCT AND WILL DEMAND IT HE SAYS 75 OF THE MERCHANDISE PENNEY SELLS IN THE US WILL BE STOCKED IN ITS MEXICAN STORES THE REST WILL BE PURCHASED IN MEXICO THE COMPANY SAYS IT WILL GAIN ANY LOCAL EXPERTISE IT NEEDS THROUGH THE DOZENS OF PROSPECTIVE MEXICAN MANAGERS IT IS TRAINING AT ITS HEADQUARTERS DUBBED THE PENNEYTENTIARY BY SOME WAGS PENNEY EXPECTS SALES AT ITS MEXICAN STORES TO FAR SURPASS ITS US AVERAGE OF 137 A SQUARE FOOT SOME ANALYSTS ALSO PREDICT HIGHER PROFIT MARGINS IN MEXICO AND PENNEY WON'T HAVE TO SPLIT PROFITS WITH A JOINTVENTURE PARTNER PENNEY ADDS THAT IT HAS MINIMIZED THE RISK BY LEASING INSTEAD OF OWNING ITS BUILDINGS KIDDER'S MR ROSEN HOWEVER BELIEVES MEXICO ALREADY HAS TOO MANY STORES FOR THE 11 MILLION UPPERINCOME CUSTOMERS PENNEY WANTS PREPARING FOR THE POSTNAFTA ONSLAUGHT MEXICAN DEPARTMENT STORES HAVE INCREASED THEIR SQUARE FOOTAGE 30 IN THE PAST THREE YEARS AND ARE STILL EXPANDING HE ADDS PENNEY HE SAYS IS WALKING INTO WHAT I CONSIDER THE MOST COMPETITIVE SEGMENT OF THE MARKET RIGHT NOW OVERALL PENNEY'S OVERSEAS EFFORTS ARE STILL BUT A BLIP ON THE RADAR SCREEN FOR A COMPANY WITH ANNUAL SALES OF ABOUT 18 BILLION THE COMPANY DOESN'T EVEN REPORT INTERNATIONAL SALES FIGURES AND WON'T PROJECT FUTURE FOREIGN SALES BUT BASED ON SALES AT STORES ALONG THE USMEXICO BORDER SOME ANALYSTS PREDICT THAT PENNEY'S SEVEN PLANNED MEXICAN UNITS WILL EACH GENERATE MORE THAN 33 MILLION IN ANNUAL SALES MR LYNCH WON'T PROJECT HOW FAR ALL THIS EXPANSION WILL GO CITING THE UNCERTAINTIES OF OVERSEAS OPERATIONS HE NOTES THE ABANDONMENT OF A PLANNED ABU DHABI STORE BECAUSE THE SITE LACKS PARKING SPACE AND A SIXMONTH DELAY IN OPENING A MONTERREY STORE BECAUSE OF CONSTRUCTION PROBLEMS THINGS KEEP CHANGING YOU HAVE TO BE ADAPTABLE PATIENT AND WE'RE BEING EXTREMELY CAUTIOUS MR LYNCH SAYS WE'RE TAKING THE LONGTERM VIEW 9402010019 940201 CORRECTIONS & AMPLIFICATIONS DAVID KAY PREVIOUSLY WAS AN OFFICIAL FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA IN AN ARTICLE YESTERDAY ABOUT INSPECTIONS OF NORTH KOREA'S NUCLEAR SITES MR KAY WAS INCORRECTLY IDENTIFIED AS A FORMER ANALYST FOR THE CENTRAL INTELLIGENCE AGENCY MYCOGEN CORP SAID IT EXPECTS TO BE PROFITABLE THIS YEAR FOLLOWING A RESTRUCTURING OF THE COMPANY A DEC 23 ENTERPRISE ARTICLE QUOTED ANALYSTS AS INDICATING THAT THE SAN DIEGO BIOTECHNOLOGY COMPANY WOULDN'T BE PROFITABLE IN 1994 ATLANTIC RICHFIELD CO'S VASTAR RESOURCES INC UNIT WILL RECEIVE THE PROCEEDS FROM A PROPOSED INITIAL PUBLIC OFFERING OF AS MUCH AS 177 OF VASTAR STOCK OUTSTANDING AN ARTICLE YESTERDAY INCORRECTLY STATED THAT ARCO WOULD RECEIVE THE PROCEEDS GLASER CAPITAL CORP CINCINNATI WAS THE LEAD UNDERWRITER FOR THE RECENTLY COMPLETED COMMON STOCK OFFERING OF FUTURE HEALTHCARE INC ALSO BASED IN CINCINNATI AN ARTICLE WEDNESDAY INCORRECTLY IDENTIFIED THE LEAD UNDERWRITER AS MONNESS CRESPI HARDT & CO NEW YORK 9402010018 940201 COMMODITIES PRECIOUSMETALS PRICES RALLY IS SPURRED BY FUNDS AS HEAVY BUYING REVERSES LAST WEEK'S COURSE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLDFUTURES PRICES LEAPED HIGHER SPURRED BY THE HEAVY BUYING OF COMMODITY FUNDS AND STRONG PERFORMANCE OF OTHER COMMODITY MARKETS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY SETTLED AT 38360 AN OUNCE UP 460 ON THE DAY WHILE THE PRICE OF THE MARCH SILVERFUTURES CONTRACT ROSE 115 CENTS TO 5135 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE APRIL PLATINUM WAS UP 430 TO 386 AN OUNCE YESTERDAY'S RALLY IN PRECIOUSMETALS MARKETS CAME AFTER STEEP PRICE DROPS THROUGHOUT MOST OF LAST WEEK AND IN EARLY TRADING YESTERDAY IT APPEARED PRICES WERE HEADED LOWER AGAIN AT ONE POINT THE APRIL GOLD CONTRACT WAS DOWN 150 AT 37750 AN OUNCE LAST WEEK'S DROP WHICH SAW THE PRICE OF THE APRIL CONTRACT FALL FROM ABOUT 390 AN OUNCE TO LESS THAN 380 AN OUNCE HAD PUSHED THE MARKET TOO LOW SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN THE MARKET WAS DEFINITELY OVERSOLD MR DEMLER SAID IT WAS DUE FOR A CORRECTION PROVIDING A FOUNDATION OF SUPPORT FOR PRECIOUSMETALS PRICES WERE COMMODITY FUNDS THE MANAGED POOLS OF INVESTORS' MONEY THAT WIELD SO MUCH INFLUENCE IN TODAY'S COMMODITY MARKETS ANALYSTS SAID IT WAS A TECHNICAL REVERSAL SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH MANY OF THE VERY HEAVY FUND SELLERS FROM LATE LAST WEEK REVERSED COURSE THE MARKET DERIVED ADDITIONAL STRENGTH FROM A RALLY IN THE KNIGHT RIDDER COMMODITY RESEARCH BUREAU INDEX OF 21 COMMODITYFUTURES CONTRACTS THE INDEX SETTLED AT 22555 UP 055 ON THE DAY GOLD AND THE CRB INDEX TEND TO MOVE MORE OR LESS IN TANDEMAND OPPOSITE THE PERFORMANCE OF BOND PRICES THE RECENT DROPS IN GOLD PRICES ARE A COUNTERTREND MOVE THAT IS AGAINST THE LONGTERM UPWARD TREND MR O'NEILL SAID THE LONGTERM FUNDAMENTAL PICTURE IS QUITE CONSTRUCTIVE FOR THE METALS ONE FACTOR THAT MAY PROVIDE LONGTERM SUPPORT FOR PRECIOUSMETALS PRICES ANALYSTS SAID IS THE JAPANESE ECONOMICSTIMULUS PACKAGE UNVEILED OVER THE WEEKEND WHICH PROVIDES FOR LOWER TAXES AND SPENDING INCENTIVES THAT MAY ENHANCE JAPANESE PURCHASES OF GOLD IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS WHEAT PRICES JUMPED ON RUMORS THAT CHINA IS INTERESTED IN BUYING AN ADDITIONAL 184 MILLION BUSHELS OF SUBSIDIZED US WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY JUMPED 750 CENTS A BUSHEL TO SETTLE AT 37175 A BUSHEL CHINA BOUGHT ABOUT 30 MILLION BUSHELS OF US WHEAT IN JANUARY CHINA'S CONTINUING INTEREST IGNITED SPECULATION THAT A DROUGHT IN ONE WHEATPRODUCING PROVINCE IS SPREADING THE RALLY FOLLOWS A BIG SLUMP IN WHEAT PRICES OVER THE PAST FEW WEEKS CORN AND SOYBEAN PRICES SETTLED MIXED ENERGY PETROLEUMFUTURES PRICES DRIFTED LOWER ON LITTLE NEWS ONLY HEATING OIL FOR FEBRUARY DELIVERY SHOWED GAINS ON THE NEW YORK MERCANTILE EXCHANGE CONTINUED COLD WEATHER HELPED TO SUPPORT PRICES OF THE FEBRUARY HEATINGOIL CONTRACT WHICH ROSE ONE CENT A GALLON TO SETTLE AT 537 CENTS BUT PRICES OF HEATING OIL FOR MARCH OR LATER DELIVERY DROPPED UNLEADED GASOLINE PRICES FELL AS TRADERS SOLD THE EXPIRING FEBRUARY CONTRACT TO ROLL POSITIONS INTO MARCH FUTURES ALSO WEATHERRESTRICTED DRIVING OVER MUCH OF THE US MAY HAVE CURBED GASOLINE DEMAND THE FEBRUARY CONTRACT WAS DOWN 092 CENT A GALLON TO 4254 CENTS CRUDE OIL FOR MARCH DELIVERY SETTLED 15 CENTS LOWER AT 1519 A BARREL 9402010017 940201 WHO'S NEWS ATLANTIS GROUP INC ATLANTIS GROUP INC MIAMI EARL W POWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS PLASTICS CONCERN ASSUMED THE ADDITIONAL TITLE OF PRESIDENT MR POWELL 55 YEARS OLD SUCCEEDS H RANDALL LITTEN 57 WHO WAS NAMED CHIEF EXECUTIVE OF THE ATLANTIS FILMS UNIT 9402010016 940201 WHO'S NEWS MASTERCARD SELECTS LOCKHART FOR POSITIONS OF PRESIDENT AND CEO NEW YORK MASTERCARD INTERNATIONAL INC SAID H EUGENE LOCKHART A BRITISH BANKERTURNEDCONSULTANT HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE CREDITCARD CONSORTIUM MR LOCKHART 43 YEARS OLD SUCCEEDS ALEX HART WHO RESIGNED LAST WEEK TO JOIN FASTGROWING ADVANTA CORP MR LOCKHART JOINS THE CONSORTIUM FROM FIRST MANHATTAN CONSULTING GROUP ONE OF THE TOP BANKCONSULTING FIRMS IN THE US WHERE HE WAS AN EXECUTIVE VICE PRESIDENT SPECIALIZING IN RETAIL BANKING AND CREDITCARD STRATEGIES MR LOCKHART HAS BEEN AN ADVISER TO MASTERCARD OVER THE PAST YEAR AND A BOARD MEMBER SINCE 1990 PRIOR TO FIRST MANHATTAN MR LOCKHART SPENT SIX YEARS AT MIDLAND BANK PLC INCLUDING THE POST OF CHIEF EXECUTIVE FOR UNITED KINGDOM BANKING OPERATIONS HE HAD RESPONSIBILITY FOR ALL DOMESTIC BANKING INCLUDING CREDIT AND DEBIT CARDS AND RETAIL BANKING MIDLAND IS THE UK'S THIRDLARGEST CREDITCARD ISSUER MR LOCKHART TAKES THE HELM AT A TIME OF CUTTHROAT COMPETITION BETWEEN MASTERCARD AND ITS LARGER RIVAL VISA USA FOR NEW MARKETS WHILE MASTERCARD HAS GAINED ON ITS RIVAL DOMESTICALLY IT STILL LAGS BEHIND ON A GLOBAL BASIS WITH CONSUMERS IN THE US FLUSH WITH CREDIT CARDS BOTH COMPANIES ARE PUSHING INTO THE CORPORATE CREDITCARD MARKET AS WELL AS SOCALLED DEBIT CARDS IN GENE WE SAW SOMEONE WHO HAD AN UNUSUAL COMBINATION OF LINE RETAIL BANKING EXPERIENCE AS WELL AS EXPERIENCE IN INTERNATIONAL CONSUMER PAYMENTS AND TECHNOLOGY SAID NORMAN J TICE CHAIRMAN OF MASTERCARD'S BOARD AND EXECUTIVE VICE PRESIDENT OF BOATMEN'S NATIONAL BANK OF ST LOUIS 9402010015 940201 CLINTON SUPERFUND PLAN CLEARS HURDLE WITH PRAISE FROM PRIVATESECTOR PANEL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S PRACTICALLY COMPLETE SUPERFUND PLAN CLEARED A MAJOR HURDLE WHEN IT WON PRAISE FROM THE CHAIRMAN OF AN INFLUENTIAL PRIVATESECTOR PANEL THE COMMENTS BY JONATHAN LASH CHAIRMAN OF THE NATIONAL COMMISSION ON SUPERFUND APPEAR TO REMOVE A POTENTIAL OBSTACLE RAISED BY FOUR SENATORS LIKELY TO PLAY AN IMPORTANT ROLE IN REWRITING THE SUPERFUND LAW THE FOUR SENATORS DEMOCRATS MAX BAUCUS OF MONTANA AND FRANK LAUTENBERG OF NEW JERSEY AND REPUBLICANS DAVID DURENBERGER OF MINNESOTA AND JOHN CHAFEE OF RHODE ISLAND WROTE PRESIDENT CLINTON LAST MONTH URGING THAT THE ADMINISTRATION PROPOSAL INCORPORATE THE FINDINGS OF THE COMMISSION WHICH IS SPONSORED BY THE KEYSTONE CENTER A COLORADOBASED NONPROFIT GROUP THE CLINTON SUPERFUND PLAN COULD GO UP TO CAPITOL HILL AS EARLY AS THIS WEEK THERE IS NOW CONSENSUS ON THE CHANGES TO THE PROGRAM SAID CAROL BROWNER ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY WHAT WE HAVE IS A PROPOSAL THAT MANY ARE GOING TO BE ABLE TO STAND BEHIND MR LASH WHO IN RECENT WEEKS HAS BEEN INVOLVED IN INTENSE NEGOTIATIONS WITH THE ADMINISTRATION OVER WORDING IN THE SUPERFUND BILL SAID YESTERDAY IT APPEARS THAT IT WILL BE A VERY CONSTRUCTIVE PROPOSAL AND A GOOD STARTING POINT ASKED WHETHER REP AL SWIFT D WASH CHAIRMAN OF THE HOUSE HAZARDOUSMATERIALS SUBCOMMITTEE WOULD INTRODUCE A VERSION OF THE KEYSTONE CENTER'S PLAN TO COMPETE WITH THE ADMINISTRATION PLAN A MOVE THE LAWMAKER IS SAID TO HAVE CONTEMPLATED MR LASH SAID I DON'T EXPECT THERE TO BE AN ALTERNATIVE BILL SEN BAUCUS IS CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE SEN LAUTENBERG IS CHAIRMAN OF THE PANEL'S SUPERFUND SUBCOMMITTEE SENS CHAFEE AND DURENBERGER ARE THE RANKING REPUBLICANS ON THE TWO PANELS MR LASH IN ADDITION TO BEING CHAIRMAN OF THE KEYSTONE PANEL IS PRESIDENT OF THE WORLD RESOURCES INSTITUTE AND COCHAIRMAN OF THE PRESIDENT'S COMMISSION ON SUSTAINABLE DEVELOPMENT THE SUPERFUND PROPOSAL BEING READIED BY THE ADMINISTRATION WOULD ALTER THE HAZARDOUSWASTE LAW IN SEVERAL SIGNIFICANT RESPECTS IT WOULD AIM TO SUBSTANTIALLY REDUCE SUPERFUNDRELATED LITIGATION BY CREATING A NEW FUND TO SETTLE LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS OVER WHO IS RESPONSIBLE TO PAY FOR CLEANUP OF SITES WHERE DUMPING OCCURRED BEFORE 1986 REVENUE FOR THE FUND DRAWN FROM A NEW TAX ON INSURERS WOULD TOTAL 500 MILLION IN EACH OF THE FIRST TWO YEARS OF THE LAW'S IMPLEMENTATION AND AS MUCH AS 700 MILLION IN EACH OF THE FOLLOWING THREE YEARS BECAUSE DIFFERENT STATES HAVE DIFFERENT LAWS AND LEGAL PRECEDENTS ABOUT HOW RESPONSIBLE INSURERS ARE FOR CLEANUP COSTS POLLUTING BUSINESSES SUING THEIR INSURERS COULD GET FROM THE FEDERAL GOVERNMENT 20 OF CLEANUP COSTS IF THEY ARE SUING IN A STATE THAT GENERALLY FAVORS INSURERS 40 IN A STATE THAT FAVORS NEITHER SIDE AND 60 IN A STATE THAT FAVORS POLLUTING BUSINESSES UNDER THE PROPOSAL DETERMINING WHICH STATE FITS WHICH CATEGORY WOULD BE LEFT TO THE REGULATORY PROCESS REFLECTING A LONGSTANDING CONSENSUS BETWEEN THE EPA AND THE BUSINESS COMMUNITY THE SUPERFUND PLAN WILL ALLOW FEDERAL OFFICIALS GREATER FLEXIBILITY TO APPROVE DIFFERENT LEVELS OF CLEANUP FOR A SUPERFUND SITE DEPENDING ON WHAT THAT SITE'S FUTURE USE PARKING LOT OR PLAYGROUND IS EXPECTED TO BE BASED ON INPUT FROM COMMUNITY GROUPS IN A CONCESSION TO THE KEYSTONE GROUP THE ADMINISTRATION ALSO HAS AGREED TO MOVE MORE QUICKLY ON SOCALLED HOT SPOTS OR AREAS WITHIN WASTE SITES WHERE DANGER FROM CONTAMINATION IS PARTICULARLY HIGH OVERALL THE ADMINISTRATION ESTIMATES THE CHANGES IN CLEANUP STANDARDS WILL REDUCE CLEANUP COSTS BY 25 IN ADDITION PURCHASERS OF ABANDONED URBAN PROPERTIES THAT HAVE ALREADY BEEN DESIGNATED SUPERFUND SITES WOULD BE EXEMPTED FROM SUPERFUND LIABILITY A MOVE THAT IS AIMED AT EASING FINANCIAL BARRIERS TO REVITALIZING URBAN AREAS 9402010014 940201 BUSINESS BRIEFS VF CORP COMPLETED ITS ACQUISITION OF NUTMEG INDUSTRIES INC TAMPA FLA FOR ABOUT 325 MILLION CENCALL COMMUNICATIONS CORP ACQUIRED ST LOUIS ELECTRONICS INC RA MATHEIS A&E ELECTRONICS CORP AND WARNER COMMUNICATIONS WHICH IS NOT AFFILIATED WITH TIME WARNER INC FOR 30 MILLION IN CASH AND STOCK BHC COMMUNICATIONS INC DIRECTORS AUTHORIZED PURCHASE OF AS MUCH AS 15 MILLION CLASS A COMMON SHARES IN ADDITION TO 148000 SHARES REMAINING UNDER A PREVIOUS AUTHORIZATION BHC HAS 76 MILLION CLASS A SHARES OUTSTANDING WHILE CHRISCRAFT INDUSTRIES INC OWNS 18 MILLION CLASS B COMMON SHARES CHAMPION ENTERPRISES INC AGREED TO PURCHASE CLOSELY HELD DUTCH HOUSING INC FOR 40 MILLION AMERICAN MEDICAL RESPONSE INC SIGNED A DEFINITIVE AGREEMENT TO PURCHASE 911 EMERGENCY SERVICES INC MODESTO CALIF TERMS WEREN'T DISCLOSED FIRST FEDERAL SAVINGS BANK OF COLORADO OPENED A BANK BRANCH IN GREENWOOD VILLAGE COLO GIVING THE COMPANY A TOTAL OF 24 BRANCHES 9402010013 940201 WHO'S NEWS TRANS WORLD MUSIC CORP TRANS WORLD MUSIC CORP ALBANY NY ROBERT A HELPERT 50 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THIS MUSIC AND VIDEO RETAILER BOTH POSITIONS ARE NEW MR HELPERT WAS MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEWS AND GIFT STORE DIVISION OF WH SMITH INC A UNIT OF WH SMITH PLC 9402010012 940201 INTERNATIONAL FUGITIVE MARC RICH PROSPERS ABROAD HOPES TO SETTLE US CRIMINAL CHARGES BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL DAVOS SWITZERLAND MARC RICH HAS SUCCEEDED IN MAINTAINING AND BUILDING A SUCCESSFUL INTERNATIONAL COMMODITY AND INVESTMENT BUSINESS DESPITE BEING A FUGITIVE FROM US JUSTICE AND FACING CONTINUING LAWSUITS FROM HIS FORMER WIFE MR RICH FLED THE US IN 1983 WITH HIS PARTNER PINCUS GREEN JUST BEFORE THEY WERE INDICTED ON TAXEVASION AND RACKETEERING CHARGES RELATING TO AN ALLEGED OILTRADING SCHEME NOW MR RICH SAYS HE WANTS TO SETTLE US CRIMINAL CHARGES OUTSTANDING AGAINST HIM HE ALSO SEEMS RESIGNED TO HAVING TO FACE A LONG FIGHT WITH HIS EXWIFE DENISE WHO HAS PURSUED HIM IN THE COURTS IT WILL PROBABLY TAKE YEARS TO SETTLE THE 59YEAROLD MR RICH SAYS IN AN INTERVIEW REFERRING TO THE LEGAL DISPUTE WITH HIS FORMER SPOUSE THE FORMER MRS RICH IS SEEKING HALF OF HER HUSBAND'S ASSETS WHICH HAVE BEEN ESTIMATED TO TOTAL AS MUCH AS 1 BILLION MR RICH'S EXWIFE AND HER FAMILY PROVIDED SOME OF THE SEED CAPITAL WHEN IN 1974 MR RICH LEFT PHILIPP BROTHERS AND SET UP MARC RICH & CO SHE IS NO LONGER A STOCKHOLDER ACCORDING TO MR RICH SHE REDEEMED HER SHARES IN DECEMBER 1990 HE SAYS AS CHAIRMAN OF MARC RICH & CO HOLDING AG BASED IN THE NEARBY TOWN OF ZUG SWITZERLAND MR RICH OVERSEES HIS 275 STAKE IN THE OPERATING COMPANY MARC RICH & CO IT NOW HAS ANNUAL TURNOVER OF 30 BILLION FROM TRADING CRUDE OIL PETROLEUM PRODUCTS METALS MINERALS AND AGRICULTURAL COMMODITIES MR RICH SAYS THAT HE HOPES HIS DECISION TO STEP DOWN LAST YEAR AS CHIEF EXECUTIVE OFFICER OF MARC RICH & CO MAY MAKE IT EASIER TO NEGOTIATE A SETTLEMENT OF THE US CHARGES AGAINST HIM IT HAS BECOME MR RICH'S CUSTOM TO ATTEND THE ANNUAL WORLD ECONOMIC FORUM IN THIS ALPINE RESORT OF DAVOS THE GATHERING OF WORLD POLITICAL AND BUSINESS LEADERS WHICH ENDS TONIGHT PROVIDES MR RICH AN OPPORTUNITY TO MEET WITH OLD FRIENDS AND GET AN ANNUAL TASTE OF THE WORLD OF INTERNATIONAL FINANCIAL CIRCLES THAT HE HASTILY LEFT MORE THAN A DECADE AGO 9402010011 940201 WHO'S NEWS BIOIMAGING TECHNOLOGIES INC BIOIMAGING TECHNOLOGIES INC WEST TRENTON NJ TERRENCE P BRENNAN 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PROVIDER OF BIOMEDICAL IMAGE PROCESSING AND DATAMANAGEMENT SERVICES THE DUTIES MR BRENNAN ASSUMES WERE PREVIOUSLY SHARED BY JAMES J CONKLIN 51 WHO WAS RECENTLY NAMED CHIEF SCIENTIFIC OFFICER AND WHO WILL REMAIN CHAIRMAN AND WILLIAM J FITZPATRICK 51 WHO RESIGNS AS PRESIDENT AND CHIEF OPERATING OFFICER BUT REMAINS AT THE COMPANY THROUGH THE TRANSITION THE CHIEF OPERATING OFFICER'S POSITION WON'T BE FILLED MR BRENNAN IS FORMER PRESIDENT OF RESEARCH DATA CORP 9402010010 940201 WHO'S NEWS AMERICAN ECOLOGY CORP AMERICAN ECOLOGY CORP HOUSTON EDWARD F HEIL WAS NAMED A DIRECTOR OF THIS CHEMICALWASTEDISPOSAL CONCERN MR HEIL 50 YEARS OLD AND 20 SHAREHOLDER IN THE COMPANY SUCCEEDS WILLIAM E PRACHER WHO RESIGNED FROM THE BOARD IN JUNE ALSO HARRY O NICODEMUS IV 45 WAS NAMED A VICE PRESIDENT OF THE COMPANY A NEW POSITION HE WILL REMAIN ITS CONTROLLER 9402010009 940201 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS FEB 114 NORTH CAROLINA MUSEUM OF ART 2110 BLUE RIDGE RD THROUGH APRIL 24 919 8331935 MORE THAN 100 PRINTS BY THIS 17THCENTURY MASTER INCLUDING ALL 50 OF HIS ETCHINGS GEORGIA MUSEUM OF ART UNIVERSITY OF GEORGIA THROUGH MARCH 13 DURING THE LATE 18TH AND EARLY 19TH CENTURIES INFLUENCED BY ARCHAEOLOGICAL EXCAVATIONS AND A REVIVAL OF INTEREST IN GRECOROMAN CULTURE MANY ARTISTS RECALLED THOSE NOBLE DAYS IN CRISP DRAWINGS BASED ON STATUES AND STUDIO NUDES INCLUDED ARE WORKS BY ANTON RAPHAEL MENGS BERTEL THORVALDSEN BENJAMIN WEST PIERREPAUL PRUD'HON AND OTHERS THIS SELECTION OF ABOUT 40 DOCUMENTS LETTERS AND MANUSCRIPTS FROM THE PIERPONT MORGAN LIBRARY'S OWN COLLECTION AND THE GILDER LEHRMAN COLLECTION INCLUDES A 1786 LETTER BY GEORGE WASHINGTON CALLING FOR SOME PLAN ADOPTED BY WHICH SLAVERY IN THIS COUNTRY MAY BE ABOLISHED BY SLOW SURE AND IMPERCEPTIBLE DEGREES THERE ARE DOCUMENTS FROM THE MISSOURI COMPROMISE OF 1820 AN 1837 LETTER BY JOHN QUINCY ADAMS DEPLORING A GAG RULE ON DISCUSSING ANTISLAVERY PETITIONS IN THE HOUSE AND RALPH WALDO EMERSON'S 1860 SPEECH CONDEMNING THE HANGING OF ABOLITIONIST JOHN BROWN FIESTA ESPANOLA PRESENTS THREE ONEACT OPERAS BY SPANISH COMPOSER MANUEL DE FALLA THE FANTASY WORLD OF DON QUIXOTE IS BROUGHT TO LIFE WITH COLORFUL PUPPETS AND PAPIERMACHE FARM ANIMALS IN EL RETABLO DE MAESE PEDRO A GYPSY GIRL ATTEMPTS TO WIN BACK HER UNFAITHFUL LOVER IN EL AMOR BRUJO AND TOWERING PRISON BARS AND SURREAL PASSAGEWAYS SET THE STAGE FOR THE TALE OF A YOUNG WOMAN HURT BY HER LOVE FOR A WEALTHY AND DECEITFUL MAN IN LA VIDA BREVE BLISS HEBERT DIRECTS LEIF BJALAND CONDUCTS AND STAGE DESIGNS ARE BY ALLEN CHARLES KLEIN DADE COUNTY AUDITORIUM 2901 W FLAGLER ST FEB 9 12 15 18 20 AND 23 LOCALLY 305 8547890 ELSEWHERE 18007411010 ANTHONY ROLFE JOHNSON AND THOMAS ALLEN WILL SING IN THE OPENINGNIGHT PERFORMANCE OF A NEW PRODUCTION OF BENJAMIN BRITTEN'S DEATH IN VENICE BASED ON THE THOMAS MANN NOVELLA ABOUT LONELINESS AND LUST ON THE LIDO COPRODUCED WITH THE ROYAL OPERA HOUSE COVENT GARDEN DEATH IN VENICE IS CONDUCTED BY DAVID ATHERTON AND DIRECTED BY COLIN GRAHAM LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65 STREETS FEB 7 11 15 18 23 AND 26 212 3626000 IF YOU MISSED IT THE FIRST TIME AROUND THE SEASON HERE IS CLOSING AS IT OPENED WITH THE NEW FRANK GALATI/DESMOND HEELEY PRODUCTION OF VERDI'S LA TRAVIATA JUNE ANDERSON ONCE AGAIN SINGS THE TITULAR TUBERCULAR WITH STUART NEILL AS ALFREDO AND ALEXANDRU AGACHE AS GERMONT BRUNO BARTOLETTI CONDUCTS 9402010008 940201 WHO'S NEWS CAMPBELL SOUP CO CAMPBELL SOUP CO CAMDEN NJ RONALD E ELMQUIST 47 YEARS OLD WAS NAMED PRESIDENT GLOBAL FOOD SERVICE DIVISION AND A VICE PRESIDENT OF THIS FOOD CONCERN MR ELMQUIST PREVIOUSLY WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WHITE SWAN INC ALSO A FOOD CONCERN HE FILLS NEW POSITIONS AT CAMPBELL AND WILL BE RESPONSIBLE FOR FOODSERVICES BUSINESSES IN THE US AND CANADA AS WELL AS THOSE OF THE PEPPERIDGE FARM BRAND DAVID W JOHNSON CAMPBELL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MR ELMQUIST WAS CHOSEN TO LEAD AN AGGRESSIVE EFFORT TO INCREASE THE GLOBAL DIVISION'S BUSINESS 9402010007 940201 IBM TO FORGO RIGHT TO MAKE INTEL'S PENTIUM MOVE FREES COMPUTER GIANT TO USE MORE RESOURCES ON RIVAL POWERPC CHIP BY LAURIE HAYS AND BILL RICHARDS STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP HAS DECIDED TO FORGO THE RIGHT TO MANUFACTURE INTEL CORP'S LATESTGENERATION CHIP THE PENTIUM FREEING IBM TO PUT MORE RESOURCES BEHIND ITS RIVAL ENTRY IN AN EMERGING CHIP WAR THE POWERPC IBM AND INTEL ANNOUNCED A NEW PACT YESTERDAY THAT AMOUNTS TO THE BOLDEST AND PERHAPS RISKIEST MOVE IBM HAS YET MADE TO PUSH THE POWERPC CHIP INTO THE MARKET IT CLEARLY PITS IBM AGAINST INTEL AS A COMPETITOR BY HAVING IBM BACK AWAY FROM THE PENTIUM THE MOST POWERFUL AND LATEST ENTRY IN THE INTEL CHIP FAMILY THAT HAS LONG POWERED MOST PERSONAL COMPUTERS IF IBM SUCCEEDS IT COULD SIGNIFICANTLY DAMAGE INTEL'S POSITION AS THE LEADING CHIP SUPPLIER TO THE PC INDUSTRY BUT BY FORGOING PRODUCTION RIGHTS FOR PENTIUM IBM ALSO IS RUNNING THE RISK THAT THE PC MARKET COULD HEARTILY EMBRACE THE INTEL CHIP THAT WOULD LEAVE IBM WITHOUT THE COST ADVANTAGES OF MAKING THE PENTIUM AND FORCE IT TO BUY AT A HIGHER COST DIRECTLY FROM INTEL WE'VE MADE A COMMITMENT TO POWERPC JAMES CANNAVINO IBM'S TOP STRATEGIST SAID IN AN INTERVIEW WE JUST DIDN'T THINK IT WAS PRODUCTIVE FOR US TO MAKE PENTIUMS CURT ROHRMAN AN ANALYST FOR CS FIRST BOSTON INC SAID AFTER IBM'S ANNOUNCEMENT THERE WILL BE A CHIP WAR IN 1994 THERE'S NO DOUBT ABOUT IT ALL THE TROOPS ARE LINING UP IN A MUTUALLY BENEFICIAL RELATIONSHIP UP UNTIL NOW IBM UNDER LICENSE WITH INTEL HAS MANUFACTURED ITS OWN INTEL CHIPS IT IS LESS EXPENSIVE THAN BUYING THE DEVICES FROM INTEL AND IT ENSURES AN ADEQUATE SUPPLY FOR IBM FOR INTEL HOWEVER THE ARRANGEMENT ALSO ENSURED THAT THE WORLD'S LARGEST PC MAKER WOULD BE COMMITTED TO USING AN INTELDESIGNED ARCHITECTURE ANDY GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE SAID HE DOESN'T SEE THE NEW AGREEMENT CHANGING THE NATURE OF PAST AGREEMENTS IBM IS OUR LARGEST CUSTOMER IT WAS BEFORE AND REMAINS SO NOW MR GROVE SAID IBM ARMONK NY AND INTEL SANTA CLARA CALIF PLAN TO CONTINUE THAT RELATIONSHIP BUT THE AGREEMENT LEAVES OUT THE PENTIUM AND ALLOWS IBM TO INCREASE ITS OWN PRODUCTION OF PENTIUM'S PREDECESSOR THE INTEL 486 CHIP WHICH IS THE MOST POPULAR CHIP IN COMPUTERS TODAY IBM NOW PLANS TO MAKE THE 486 CHIP FOR 50 OF ITS PC LINE COMPARED WITH 20 UNDER THE OLD AGREEMENT LAST YEAR IBM SHIPPED 43 MILLION PCS WITH INTEL CHIPS AND EXPECTED TO INCREASE PRODUCTION BY ONE MILLION UNITS THIS YEAR MR GROVE SAYS INTEL WILL BE ABLE TO MAKE THE TRANSITION TO PENTIUM CHIP PRODUCTION MORE QUICKLY NOW THAT IBM HAS AGREED TO MAKE MORE 486 CHIPS THUS DECREASING THE PRODUCTION DEMAND ON INTEL MR CANNAVINO OF IBM SAID THE COMPANY'S IBM PERSONAL COMPUTER CO UNIT ISN'T ABANDONING ITS COMMITMENT TO INTEL AND WILL BUY PENTIUM CHIPS AS DEMAND FOR HIGHERPOWER COMPUTERS BASED ON THAT LINE EMERGES HE SAID IBM'S RELATIONSHIP WITH INTEL IS FRIENDLY SO FAR BUT WE'RE TOUGH COMPETITORS BUT THE NEW PACT CLEARLY SIGNALS THAT IBM MAY BE BETTING AGAINST THE PENTIUM LINE MR CANNAVINO SAID IT WOULD HAVE COST IBM SEVERAL HUNDRED MILLION DOLLARS TO BUILD PLANTS FROM SCRATCH TO MAKE THE LATEST INTEL CHIP THE PENTIUM REQUIRES TWO TYPES OF MICROPROCESSOR TECHNOLOGY UNLIKE ANYTHING ELSE IBM MAKES MR CANNAVINO SAID ANALYSTS ALSO SAID THE PRICE WAR IS ALREADY BRINGING DOWN PENTIUM CHIP PRICES WHICH MAY HAVE PLAYED INTO IBM'S THINKING CHIP PRICES COULD DROP SHARPLY AS VARIOUS COMPETITORS TAKE ON THE INTEL LINEAGE INCLUDING SILICON GRAPHICS INC'S MIPS TECHNOLOGY UNIT AND DIGITAL EQUIPMENT CORP'S ALPHA CHIP EFFORT AS WELL AS THE POWERPC EFFORT MOUNTED BY IBM WITH PARTNERS MOTOROLA INC AND APPLE COMPUTER INC INTEL IS GOING TO BE IN THE DRIVER'S SEAT AND WILL LOWER THE PRICE OF PENTIUM LOWERING RETURN ON INVESTMENT FOR ANY PENTIUM CLONE OBSERVED RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORP BOSTON IN OTHER WORDS MR ZWETCHKENBAUM SAID IBM MAY HAVE DECIDED IT WASN'T WORTH THE INVESTMENT TO MAKE PENTIUM CHIPS BECAUSE INTEL WILL BE LEADING THE WAY IN SLASHING PRICES IN THE SHORTTERM PENTIUM CHIPS ARE STILL A SMALL PART OF THE MARKET ONLY 1 OF ALL PCS SHIPPED WORLDWIDE LAST YEAR HAD PENTIUM MICROPROCESSORS COMPARED WITH 58 RUNNING ON THE 486 CHIP MR ZWETCHKENBAUM ESTIMATES INTEL HAS SAID IT EXPECTS 15 OF ALL PCS SHIPPED THIS YEAR TO CONTAIN THE PENTIUM BUT IN THE LONG RUN IBM FACES A SIGNIFICANT CHALLENGE THERE IS NO GUARANTEE THAT THE WORLD IS GOING TO WANT ITS POWERPC CHIP ONLY ONE PRODUCT THE RS6000 WORKSTATION HAS BEEN ANNOUNCED WITH THE POWERPC CHIP IBM DOESN'T YET HAVE A DESKTOP OPERATING SYSTEM THE INTERNAL SOFTWARE THAT ACTS AS A COMPUTER'S TRAFFIC COP FOR THE POWERPC THAT WILL ENABLE IT TO RUN THE HOST OF SOFTWARE PROGRAMS THAT NOW RUN ON THE INTEL CHIPS MOREOVER INTEL AS THE LEADING CHIP SUPPLIER IN THE WORLD CONTROLS MOST OF THE MARKET OUT OF A TOTAL OF 361 MILLION PCS SHIPPED LAST YEAR 84 HAD INTEL ARCHITECTURE BILLIONS OF DOLLARS WORTH OF SOFTWARE HAS BEEN PURCHASED BY COMPUTER CUSTOMERS BASED ON THE INTEL DESIGN THE POWERPC CHIP UNLIKE THE INTEL CHIPS USES REDUCED INSTRUCTION SET COMPUTING OR RISC DESIGN IBM SAYS IT WILL BE SWIFTER AND LESS EXPENSIVE TO MANUFACTURE THAN THE PENTIUM AND WILL COMPETE MOST DIRECTLY WITH INTEL'S NEXT GENERATION OF PENTIUM CHIPS IBM HAS PROMISED A PC RUNNING ON THE NEW CHIP BY THE MIDDLE OF THIS YEAR IT IS ALSO PLANNING A HOST OF CONSUMER PRODUCTS THAT WILL RUN ON A FAMILY OF POWERPC CHIPS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE IBM SHARES CLOSED AT 5650 DOWN 125 ON THE NASDAQ STOCK MARKET INTEL SHARES CLOSED AT 6525 UP 125 CENTS 9402010006 940201 WHO'S NEWS AVATAR HOLDINGS PULLS WILKOV FROM POSTS AS PRESIDENT CHIEF CORAL GABLES FLA AVATAR HOLDINGS INC SAID IT HAS REMOVED ITS PRESIDENT AND CHIEF EXECUTIVE AND NAMED HIM A CONSULTANT TO THE COMPANY BUT THE EXECUTIVE LAWRENCE WILKOV ACCORDING TO HIS ATTORNEY HAS BEEN UNDERMINED AT AVATAR AND WANTS THE COMPANY TO HONOR THE REMAINDER OF HIS EMPLOYMENT CONTRACT MR WILKOV 61 YEARS OLD HAS BEEN PRESIDENT OF THE REALESTATE AND UTILITY HOLDING COMPANY SINCE 1984 HE WAS NAMED CHIEF EXECUTIVE IN 1990 YESTERDAY AVATAR SAID THAT AS A RESULT OF CERTAIN DIFFERENCES MR WILKOV'S STATUS WOULD BE CHANGED TO THAT OF CONSULTANT IT DECLINED TO ELABORATE THE COMPANY SAID EDWIN JACOBSON 63 CHAIRMAN OF AVATAR'S EXECUTIVE COMMITTEE HAS ASSUMED THE DUTIES OF CHIEF EXECUTIVE MR JACOBSON COULDN'T BE REACHED FOR COMMENT MR WILKOV'S ATTORNEY HUGO L BLACK JR SAID HIS CLIENT HAD A CONTRACT TO RUN THE COMPANY UNTIL DECEMBER 1997 BUT IN THE PAST MONTH MR BLACK SAID MR WILKOV HAS FOUND SOME OF HIS DECISIONS AND ACTIONS BLOCKED BY OTHER EXECUTIVES AT AVATAR MR BLACK SAID MR WILKOV WON'T BE A CONSULTANT TO THE COMPANY RATHER MR WILKOV WANTS AVATAR TO UPHOLD THE TERMS OF THE REMAINDER OF HIS EMPLOYMENT CONTRACT THAT PACT ACCORDING TO MR BLACK CALLS FOR AN ANNUAL SALARY OF 300000 AND FOR MR WILKOV TO RECEIVE A TOTAL OF 60000 SHARES OF AVATAR STOCK THROUGH THE FIRST NINE MONTHS OF 1993 AVATAR REPORTED EARNINGS OF 89 MILLION OR 88 CENTS A SHARE ON REVENUE OF 1016 MILLION NET INCOME INCLUDED A GAIN OF 117 MILLION ON THE SALE OF THE COMPANY'S MIDWEST WATER UTILITIES AND A CHARGE OF 964000 FOR AN ACCOUNTING CHANGE 9402010005 940201 ECONOMY HIGHER RATES ARE EXPECTED BY GREENSPAN FED'S CHIEF TELLS CONGRESS RISE WILL COME BUT HE REFUSES TO CITE A TIME BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WARNED CONGRESS THAT THE FED WOULD BOOST SHORTTERM INTEREST RATES AT SOME POINT BUT HE REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO SHORTTERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS HE SAID AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE APPEARING BEFORE CONGRESS'S JOINT ECONOMIC COMMITTEE AN UPBEAT MR GREENSPAN DESCRIBED A ROBUST US ECONOMY SAYING THE FOUNDATIONS OF ECONOMIC EXPANSION ARE LOOKING INCREASINGLY WELLENTRENCHED PROGRESS IN REDUCING THE FEDERAL BUDGET DEFICIT ALONG WITH CORPORATE AND PRIVATE DEBT HAVE HELPED PAVE THE WAY FOR STRONGER GROWTH HIGHER EMPLOYMENT AND MORE AGGRESSIVE CONSUMER SPENDING AND BUSINESS INVESTMENT HE SAID MR GREENSPAN ALSO SAID INFLATION IS LIKELY TO REMAIN TAME IN 1994 NOTING THAT IN THE FOURTH QUARTER ONE KEY MEASURE OF INFLATION THE CORE CONSUMER PRICE INDEX WHICH EXCLUDES VOLATILE FOOD AND ENERGY PRICES FELL TO THE LOWEST LEVEL IN TWO DECADES I HAVE SAID ON MANY OCCASIONS I THOUGHT THAT WE ARE NOT THAT FAR FROM PRICE STABILITY HE SAID WE AREN'T THERE YET CLEARLY BUT WE HAVE MADE CONSIDERABLE PROGRESS IN THAT DIRECTION HE CAUTIONED THAT BY THE TIME INFLATION BECOMES EVIDENT IT'S TOO LATE TO MODERATE IT WITHOUT HARSH INTERESTRATE INCREASES PRESIDENT CLINTON AS WELL AS MEMBERS OF THE COMMITTEE APPEALED TO THE FED TO RESIST RAISING RATES WHEN THE CENTRAL BANK'S OPEN MARKET COMMITTEE MEETS THIS WEEK TO DISCUSS INTERESTRATE POLICY WE WANT THE ECONOMY TO GROW IN A VERY STABLE SOLID WAY PRESIDENT CLINTON TOLD REPORTERS YESTERDAY AND OBVIOUSLY LOW INTEREST RATES ARE CRITICAL TO THAT AT THE HEARING SEN PAUL SARBANES D MD REMINDED MR GREENSPAN THAT MUCH OF THE CURRENT ECONOMIC KICK IS COMING FROM INTERESTSENSITIVE INDUSTRIES SUCH AS HOME BUILDING HIGHER INTEREST RATES COULD DIMINISH SUCH GROWTH THE SENATOR WARNED I WANT TO STAY THE COURSE HERE HE SAID MR GREENSPAN SAID THAT RAISING SHORTTERM RATES WOULD PROVIDE PRICE STABILITY NECESSARY FOR FURTHER ECONOMIC GROWTH SUCH AN ACTION WOULD NOT BE TAKEN IN ORDER TO CUT OFF OR LIMIT THE ECONOMIC EXPANSION HE SAID BUT RATHER TO SUSTAIN AND ENHANCE IT LAST JULY MR GREENSPAN ISSUED SIMILAR WARNINGS THAT THE FED WAS BRACING ITSELF FOR FURTHER SIGNS OF INFLATION TO ASSESS WHETHER TO INCREASE SHORTTERM RATES THE LAST TIME THE FED MOVED INTEREST RATES WAS A REDUCTION IN SEPTEMBER 1992 IT HASN'T ACTED TO INCREASE RATES IN FIVE YEARS CITING A FEW ECONOMIC DARK SPOTS THE FED CHAIRMAN POINTED TO SOME WEAKNESS IN PARTS OF THE LABOR MARKET SOME INDUSTRIES HAVE IMPROVED PRODUCTIVITY BY DOING MORE WITH FEWER EMPLOYEES INDUSTRIES DEPENDENT ON MILITARY SPENDING ARE EXPECTED TO REMAIN ANEMIC AND WEAKNESS OF SOME MAJOR TRADING PARTNERS PARTICULARLY JAPAN AND EUROPE CONTINUES TO HURT DEMAND FOR US EXPORTS INTERPRETING ECONOMIC DATA WILL BE MORE DIFFICULT IN THE COMING MONTHS MR GREENSPAN SAID DUE TO CHANGES IN HOW SOME STATISTICS ARE BEING GATHERED AND EXTRAORDINARY EVENTS SUCH AS THE LOS ANGELES EARTHQUAKE AND THE RECENT SEVERE EAST COAST COLD SNAP NONETHELESS HE PREDICTED THAT REAL GROWTH OF GROSS DOMESTIC PRODUCT THE MEASURE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES WILL ALMOST SURELY SLOW APPRECIABLY FROM THE RAPID 59 ANNUAL RATE POSTED IN THE FOURTH QUARTER BUT HE PREDICTED FURTHER SOLID GAINS IN THE COMING QUARTERS 9402010004 940201 TAKEOVERS OF MUTUAL SAVINGS BANKS ARE HALTED AS AGENCY STUDIES NEW RULES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE OFFICE OF THRIFT SUPERVISION DECLARED A MORATORIUM ON TAKEOVERS OF MUTUAL SAVINGS ASSOCIATIONS WHILE IT CONSIDERS POSSIBLE NEW RULES AIMED AT PROTECTING THE INTERESTS OF THOSE INSTITUTIONS' DEPOSITORS ALTHOUGH THE ACQUIRING BANK AND THE MUTUAL SAVINGS BANK'S MANAGERS MAY BENEFIT FROM A TAKEOVER THE DEPOSITORS WHO OWN THE MUTUAL BANK COULD WIND UP WITH LITTLE GAIN OR EVEN A DROP IN THE VALUE OF THEIR HOLDINGS THE TREASURY DEPARTMENT UNIT SAID WHEN THE DEPOSITORS' OWNERSHIP IN THEIR INSTITUTION IS CONVERTED TO SHARES OF THE ACQUIRER ANY APPRECIATION IN THAT STOCK TENDS TO BE MODERATE THE OTS SAID JONATHAN FIECHTER OTS ACTING DIRECTOR SAID HIS AGENCY ALSO WILL REVIEW ITS REGULATIONS GOVERNING CONVERSIONS OF MUTUAL SAVINGS BANKS TO STOCKHOLDEROWNED SAVINGS INSTITUTIONS WHEN NO TAKEOVER IS INVOLVED BUT WON'T HOLD UP ACTING ON APPLICATIONS FOR THOSE CONVERSIONS MR FIECHTER HAS SAID OTS RULES FOR SUCH CONVERSIONS FAVOR DEPOSITORS BY PROTECTING THEIR RIGHTS WHEN THEIR INSTITUTION CONVERTS TO A STOCK SAVINGS BANK BUT HE NOTED THAT SOME RECENT TRANSACTIONS HAVE RAISED CONCERNS OVER HOW WELL DEPOSITOR INTERESTS HAVE BEEN SERVED THOSE DEALS INCLUDED A CONVERSION PLAN BY GREEN POINT SAVINGS BANK A UNIT OF GP FINANCIAL CORP LAST WEEK THE NEW YORK STATE BANKING DEPARTMENT REBUKED THE SAVINGS BANK SAYING TOP EXECUTIVES WERE SEEKING TO ENRICH THEMSELVES BY THE CONVERSION WHILE FAILING TO MAKE SURE THE BANK WAS VALUED FAIRLY THE DEPARTMENT IMPOSED A LONG LIST OF STRINGENT CONDITIONS ON THE CONVERSION PLAN MEANWHILE MR FIECHTER SAID IT IS MY HOPE THAT THE FEDERAL DEPOSIT INSURANCE CORP WILL MOVE PROMPTLY TO ADOPT A SIMILAR MORATORIUM FOR THRIFTS UNDER ITS SUPERVISION THEREBY REDUCING THE PRESSURE ON OTSSUPERVISED THRIFTS TO CHANGE TO STATE CHARTERS TO AVOID THE OTS MORATORIUM THE FDIC LAST WEEK ISSUED A PROPOSED POLICY STATEMENT AIMED AT PREVENTING WINDFALLS BY INSIDERS WHEN MUTUAL SAVINGS BANKS UNDER FDIC JURISDICTION CONVERT TO STOCKHOLDEROWNED INSTITUTIONS BUT TWO OF THE THREE FDIC BOARD MEMBERS INCLUDING MR FIECHTER WHILE VOTING FOR THE PROPOSAL SAID THE PLAN IS TOO WEAK AND ADVOCATED THAT THE FDIC INSTEAD ADOPT OTSTYPE REGULATIONS THE FDIC CURRENTLY HAS NO REGULATIONS COVERING SUCH CONVERSIONS ANDREW HOVE ACTING CHAIRMAN OF THE FDIC TOLD THE HOUSE FINANCIAL INSTITUTIONS SUBCOMMITTEE LAST WEEK THAT THE FDIC IS CONSIDERING URGING OR REQUIRING FOR CERTAIN THRIFTS THAT IT REGULATES THAT STOCKPURCHASE RIGHTS BE ISSUED TO DEPOSITORS IN A CONVERSION THEY COULD THEN SELL THE RIGHTS TO CAPTURE ANY WINDFALL FROM CAPITAL RAISED IN THE CONVERSION MR HOVE SAID ALL FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS ALONG WITH STATECHARTERED S&LS ARE REGULATED BY THE OTS THE FDIC OVERSEES STATECHARTERED SAVINGS BANKS BUT BECAUSE RULES ARE LACKING FOR CONVERSIONS BY THOSE INSTITUTIONS TO STOCK SAVINGS BANKS OFTENWEAK STATE REGULATIONS PREVAIL MANY THRIFTS HAVE CHANGED THEIR CHARTERS IN RECENT YEARS BECOMING STATECHARTERED BANKS AND ESCAPING OTS REGULATION BUT THE OTS STILL REGULATES ABOUT 800 MUTUAL SAVINGS INSTITUTIONS REP HENRY GONZALEZ D TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN YESTERDAY URGED THE OTS TO CONSIDER WAYS TO EXPAND THE BENEFITS OF CONVERSIONS TO THE DEPOSITORS HE SAID THE FDIC WOULD DO WELL TO FOLLOW THE OTS'S LEAD TO PREVENT SAVINGS BANK INSIDERS FROM CHOOSING THE REGULATOR WHOSE RULES PERMIT THE INSIDERS TO GET RICHEST LEADERS OF THE HOUSE AND SENATE BANKING COMMITTEES HAVE OFFERED LEGISLATION THAT WOULD RESTRICT INSIDER GAINS IN THE SAVINGS BANK CONVERSIONS 9402010003 940201 MARKETING NEAT TRICKS INVENTORS TIDY UP AUTOMOTIVE DINING BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL DO YOU ENJOY EATING PIZZA WHILE YOU DRIVE TO WORK BUT CRINGE WHEN THE BOSS NOTICES THE PEPPERONI ON YOUR LAPEL DO YOU REACH IN YOUR POCKET FOR A PEN AND PULL OUT A FRENCH FRY INSTEAD ARE YOU A MESS AT 55 MILES AN HOUR WORRY NO MORE AMERICAN INVENTORS MAY HAVE SOLVED YOUR PROBLEM A RECENT ARTICLE IN THIS NEWSPAPER ABOUT EATING IN THE CAR INSPIRED SEVERAL WOULDBE ENTREPRENEURS TO SHARE THEIR IDEAS FOR PRODUCTS MOST OF THESE INVENTIONS ARE LIKELY TO FAIL MERELY OBTAINING A PATENT COSTS AT LEAST 5000 AND DEVELOPING PRODUCT PROTOTYPES AND CRAFTING MANUFACTURING TOOLS CAN EASILY PUSH UP THE INVESTMENT TO 50000 EVEN FOR THE RARE INVENTOR WHO SUCCEEDS IN BRINGING A PRODUCT TO MARKET SUCCESS IS FAR FROM CERTAIN MANY HOME INVENTORS SIMPLY DON'T REALIZE THAT A NOVEL IDEA DOESN'T NECESSARILY TRANSLATE INTO A BUSINESS OPPORTUNITY SAYS WENDELL E DUNN ASSOCIATE DIRECTOR OF THE SOL C SNIDER ENTREPRENEURIAL CENTER AT THE WHARTON SCHOOL MR DUNN AGREED TO TALK ONLY IF THE WALL STREET JOURNAL ASKED INVENTORS NOT TO CALL HIM PLEASE DON'T CALL MR DUNN THE BIGGEST PROBLEM WITH AMATEUR INVENTORS IS THAT THEY FALL IN LOVE WITH THEIR INVENTIONS HE SAYS EVERYONE KNOWS LOVE IS BLIND JUDGE FOR YOURSELF PICTURE A SOFT VINYL LAP COVER AND YOU'VE GOT THE INVENTION OF EDWINS ARTHURS SPULGIS A 33YEAROLD FORMER CONSTRUCTION SUPERINTENDENT AN ADVANTAGE OF HIS PRODUCT THE ORIGINAL CATCHMASTER HE CALLS IT IS THAT IT IS SMALL SOFT AND WON'T CAUSE A PROBLEM IN CASE OF A CRASH MORE IMPORTANT UNLIKE A BIB IT CAN'T BE EASILY SEEN BY PEOPLE IN OTHER VEHICLES MR SPULGIS DISDAINS BIBS RIGHT YOU'RE DRIVING A 40000 CAR AND YOU'RE GOING TO LOOK OVER AT A GIRL IN THE NEXT CAR AND SAY HEY I'VE GOT A BIB ON' HE ADDS SCORNFULLY YOU COULD ALSO CUT A HOLE IN A GARBAGE BAG AND POP IT OVER YOUR HEAD AS FOR THE ORIGINAL CATCHMASTER IT WORKS LIKE A CHARM AT LEAST ACCORDING TO MR SPULGIS I'VE POURED REALLY HOT COFFEE IN MY LAP WHILE WEARING SHORTS AND THE VINYL KEPT ME INSULATED HE SAYS YOU'LL FEEL A LITTLE WARM BUT YOU WON'T JUMP UP AND SCREAM IN TRAFFIC STILL THE CATCHMASTER WHICH MR SPULGIS HOPES TO SELL FOR 10 TAKES SOME GETTING USED TO IT FEATURES A TROUGHLIKE SPILLWAY COMPLETE WITH A LARGE PLASTIC CLIP MEANT TO HOLD BEVERAGES SECURELY BETWEEN A WEARER'S THIGHS CONSUMERS WHO DON'T LIKE THE CLIP MR SPULGIS SAYS MAY SIMPLY REMOVE IT AND USE THE SPILLWAY TO HOLD FRENCH FRIES INSTEAD THERE IS A DRAWBACK FOR LADIES IN TIGHT SKIRTS HE CONCEDES MR SPULGIS ESTIMATES THAT HE HAS ALREADY SPENT AT LEAST 15000 DEVELOPING PROTOTYPES OF THE CATCHMASTER BUT HAS YET TO MANUFACTURE THE PRODUCT IN QUANTITY NOR IS HE CERTAIN ABOUT HOW HIS COMPANY EAS ASSOCIATES WILL MARKET THE ITEM HE REMAINS OPTIMISTIC THOUGH DEVOTING HIMSELF TO THE PROJECT FULL TIME I'VE GIVEN UP DATING HE SAYS IT CAME TO SANDY FLICK AFTER AN EVENING SHOPPING TRIP IN EARLY 1990 SHE PICKED UP A BURGER AND FRIES AT A FASTFOOD DRIVETHROUGH WINDOW AND HEADED FOR HOME BUT THANKS TO A MANUAL TRANSMISSION AND A SHARP TURN SHE RUINED A NEW PAIR OF PANTS BEFORE SHE EVEN HIT THE STREET LESS THAN A YEAR LATER THE FORMER FLIGHT ATTENDANT HAD DEVELOPED A MODEL OF A TRAY THAT CLIPS TO SEAT BELTS INSPIRED BY THE DESIGN OF CHILDRENS' CAR SEATS SHE CRAFTED THE FIRST PROTOTYPE FROM CARDBOARD DRINK HOLDERS THEN MOVED ON TO PAPIERMACHE SOON SHE HAD A PLASTIC VERSION I'M JUST A MOM SHE SAYS MODESTLY AND MOMS HAVE TO BE INVENTIVE THE PROTOTYPE WORKED BEAUTIFULLY SHE SAYS SO MS FLICK LOADED HER TWO CHILDREN INTO HER CAR AND DROVE FROM MIDDLETOWN CALIF TO CHICAGO THE FIRST LEG OF A 10000MILE MARKETING TRIP SHE VISITED THE PURCHASING OFFICE OF NEARLY EVERY MAJOR FASTFOOD CHAIN AND INVITED MANAGERS OUT TO LUNCH THE LUNCH CONSISTED OF DRIVETHROUGH FARE WHICH SHE COAXED HER GUESTS TO EAT IN THE CAR AS THEY TESTED HER TRAY MS FLICK DROVE AROUND MAKING SHARP TURNS AND SLAMMING ON THE BRAKES ALTHOUGH SHE SAYS SHE DOESN'T ENCOURAGE EATING AND DRIVING MS FLICK ADDS THAT THE LAPTOP COMMUTER TRAY WILL EASILY FIT BETWEEN YOU AND THE STEERING WHEEL UNLESS YOU'RE REAL FAT A DIVORCE AND A SHORTAGE OF FUNDS HAVE SLOWED HER DOWN BUT MS FLICK VOWS HER LARAKELL TRAY CO NAMED AFTER HER TWO CHILDREN WILL BEGIN SELLING THE TRAYS THROUGH FASTFOOD RESTAURANTS AND RETAIL STORES LATER THIS YEAR MS FLICK WHO HAS YET TO SIGN A DEAL WITH A SINGLE BIG CUSTOMER KNOWS THAT ONLY ABOUT 3 OF NEW PRODUCTS MAKE IT SHE FERVENTLY BELIEVES HERS WILL BE ONE OF THEM EDWINS ARTHURS SPULGIS'S OPINION OF BIBS NOTWITHSTANDING HOWARD ZACK THINKS THEY ARE THE PERFECT ACCESSORY FOR THOSE WHO INGEST ON THE INTERSTATE MR ZACK 37 CRAFTED HIS COMMUTER COVERUP FROM BLACK NEOPRENE A SYNTHETIC RUBBER A ONETIME BRAND MANAGER FOR PROCTER & GAMBLE AND A FORMER COMMERCIAL REALESTATE DEVELOPER MR ZACK SAYS HIS PRODUCT PROTECTS WEARERS AGAINST SCALDING COFFEE AS WELL AS MORE TEMPERATE SPILLS AND FOR THE TRULY MESSY THE COMMUTER COVERUP HAS A SHALLOW POCKET AT THE BOTTOM TO CATCH REALLY BIG SPILLS IT WILL PROBABLY OUTLAST THE CAR YOU'RE DRIVING HE SAYS THAT KIND OF PROTECTION DOESN'T COME CHEAP MARKETED BY SAMI INC IN TIBURON CALIF SAM I IS AN ACRONYM CREATED FROM FAMILY NAMES THE COMMUTER COVERUP SELLS FOR 1795 PLUS SHIPPING MR ZACK CONCEDES SALES SO FAR HAVE BEEN MODEST BUT HE REMAINS UNDAUNTED PEOPLE MAY FEEL FUNNY WEARING A BIB IN THE CAR HE SAYS BUT NOT AS FUNNY AS THEY WOULD WITH STAINS ON THEIR CLOTHES SOME CARMEAL ENTREPRENEURS ARE AIMING NOT AT DRIVERS BUT AT PASSENGERS GAIL FRANKEL 40 CREATED A MEAL TRAY THAT CLIPS ON CAR WINDOWS AS WELL AS STROLLER ARMS WITH KIDS IN MIND THE IDEA WAS HONED AFTER HAULING HER TWO CHILDREN THROUGH FASTFOOD RESTAURANTS IN DALLAS'S MALLS I DON'T LOOK OVER THE MARKET CAREFULLY SHE SAYS I JUST TRY TO THINK OF THINGS I WOULD LIKE TO HAVE MYSELF INTUITION HAS PAID OFF FOR MS FRANKEL IN THE PAST HER DALLAS COMPANY KELGAR INC CURRENTLY SELLS SEVEN PRODUCTS KELGAR IS AN AMALGAMATION OF HER HUSBAND'S SURNAME AND HER MAIDEN NAME ALSO IN THE PRODUCT LINE TUBBLYBUBBLY A RUBBER BATHTUB FAUCET PROTECTOR SHAPED LIKE AN ELEPHANT AND A MATCHING BATHTUB MAT CALLED TUBRUG THAT CHANGES COLOR IF THE WATER IS TOO HOT BUT THE SNAKRAK WHICH COSTS ABOUT 10 AND WAS LAUNCHED LAST AUGUST IS OFF TO A GOOD BUT NOT GREAT START FORGET CLIPS AND POCKETS AND EXOTIC MATERIALS BIGBIB IS A JUMBO BIB FOR ADULTS THAT FUNCTIONS EXACTLY LIKE INFANT VERSIONS AND SELLS FOR 12 JOAN C REED 57 HAS ENVISIONED BIGBIB SINCE THE 1960S BACK THEN HER JOB IN ADVERTISING REQUIRED A LOT OF DRIVING AND HER LOVE FOR HOT DOGS RESULTED IN FREQUENT MESSES A STINT AS A GRAPHIC DESIGNER AT A FACTORY THAT MADE BABY BIBS LATER FUELED HER DREAM MS REED SAYS HER COMPANY KRISSIE PRODUCTS INC IN PORTSMOUTH RI SOLD 25000 BIGBIBS LAST YEAR THROUGH SPECIALTY STORES AND TO COMPANIES WHO GAVE THE BIBS TO THEIR SALES FORCES THE COMPANY NAMED AFTER MS REED'S DAUGHTER HOPES TO SELL AS MANY AS 100000 IN 1994 TO BOOST SALES THE COMPANY HAS RECENTLY BEGUN MARKETING THE BIBS TO HOSPITALS AND NURSING HOMES AND HAS CREATED A VERSION DESIGNED SPECIFICALLY FOR EATING LOBSTER SHE MAY HAVE NO CHOICE EVEN THE BUOYANT MS REED CONCEDES SOME ADULTS WOULD FEEL TOO SILLY TO DRIVE AROUND IN A BIB TO INCREASE THEIR COMFORT LEVEL SHE RECENTLY ADDED DARK COLORS TO HER ORIGINALLY ALLWHITE LINE MEN LIKE NAVY AND GREEN SHE SAYS 9402010002 940201 BUSINESS BRIEF COMSAT TO ACQUIRE RADIATION SYSTEMS IN STOCK TRANSACTION BETHESDA MD COMSAT CORP SAID IT WILL BUY TELECOMMUNICATIONSEQUIPMENT MAKER RADIATION SYSTEMS INC OF STERLING VA FOR 1825 A SHARE IN STOCK OR ABOUT 150 MILLION RADIATION SYSTEMS STOCK SOARED 31 TO 17625 UP 4125 IN HEAVY TRADING ON THE NASDAQ STOCK MARKET COMSAT CLOSED AT 27125 UP 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING COMSAT WHICH PROVIDES SATELLITE NETWORKS AND OTHER COMMUNICATIONS GEAR SAID RADIATION SYSTEMS AND A COMSAT DIVISION WOULD JOIN FORCES TO SERVE THE MARKET FOR WIRELESS COMMUNICATIONS COMSAT WHICH ALREADY OWNS 49 OF RADIATION SYSTEM'S STOCK SAID IT WOULD EXCHANGE EACH SHARE OF RADIATION SYSTEMS FOR 1825 IN COMSAT STOCK RADIATION SYSTEMS GRANTED COMSAT AN IRREVOCABLE OPTION TO PURCHASE UP TO AN ADDITIONAL 15 OF RADIATION SYSTEMS' COMMON STOCK OUTSTANDING AT AN EXERCISE PRICE OF 1825 A SHARE COMSAT SAID IT DOESN'T EXPECT THE PURCHASE TO MATERIALLY DILUTE ITS 1994 EARNINGS REGULATORS AND RADIATION SYSTEMS SHAREHOLDERS MUST APPROVE THE PURCHASE FOLLOWING THE ANNOUNCEMENT STANDARD & POOR'S CORP AFFIRMED ITS SINGLEA RATING OF COMSAT'S SENIOR UNSECURED DEBT TOTAL DEBT IS ABOUT 525 MILLION S&P SAID SEPARATELY RADIATION SYSTEMS REPORTED FISCAL SECONDQUARTER NET INCOME OF 13 MILLION OR 16 CENTS A SHARE DOWN 42 FROM 23 MILLION OR 27 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ENDED DEC 31 WAS 271 MILLION COMPARED WITH 293 MILLION A YEAR EARLIER THE COMPANY SAID THE DECLINE WAS LARGELY DUE TO THE DELAY IN SETTLING A BUSINESS INTERRUPTION INSURANCE CLAIM 9402010001 940201 TECHNOLOGY & HEALTH MICROGRAFX HALLMARK'S CRAYOLA UNIT PLAN TO DEVELOP SOFTWARE FOR CHILDREN BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS MICROGRAFX INC IN A MAJOR SHIFT IN STRATEGY FOR THE BUSINESSSOFTWARE COMPANY IS JOINING WITH THE MAKER OF CRAYOLA CRAYONS TO DEVELOP A LINE OF COMPUTER PROGRAMS FOR KIDS THE ALLIANCE EXPECTED TO BE ANNOUNCED TODAY IS A FIRST FOR BOTH COMPANIES AND PLACES THEM AT THE CENTER OF WHAT HAS BECOME A BOOMING MARKET FOR SOFTWARE AIMED AT THE HOME BOTH MICROGRAFX AND BINNEY & SMITH INC THE UNIT OF CLOSELY HELD HALLMARK CARDS INC THAT SELLS CRAYOLA PRODUCTS SAY THEY EXPECT THEIR FIRST CHILDREN'S DRAWING PROGRAMS TO BE RELEASED IN THE SPRING UNDER THEIR AGREEMENT MICROGRAFX WILL WRITE THE SOFTWARE FOR THE NEW TITLES WHILE BINNEY & SMITH WILL HELP PLAN THE CONTENT DESIGN THE PACKAGING AND DISTRIBUTE THE FINAL PRODUCT MICROGRAFX FOR INSTANCE IS EXPECTED TO TAP BINNEY & SMITH'S VAST MASSMARKET DISTRIBUTION SYSTEM INCLUDING RETAILERS SUCH AS TOYS R US AND WALMART STORES INC WHICH IS FAR BROADER THAN MICROGRAFX'S TRADITIONAL BASE OF COMPUTER SUPERSTORES AND DEALERS MR TUCKER SAID THE FIRST TWO PRODUCTS WILL BE PRICED AT LESS THAN 50 AND WILL CARRY BOTH THE MICROGRAFX AND CRAYOLA NAMES THE SOFTWARE AIMED AT CHILDREN AS YOUNG AS THREE YEARS OLD INCLUDES DRAWING AND PAINTING PROGRAMS AS WELL AS AN ART STUDIO THAT WILL HELP KIDS CREATE FLIERS AND POSTERS THIS IS NOT JUST A LICENSING DEAL SAID GORDON M TUCKER THE LONGTIME CONSUMER MARKETER WHO TOOK OVER AS MICROGRAFX'S CHIEF EXECUTIVE OFFICER SEPTEMBER THIS IS A FULLFLEDGED PARTNERSHIP FOR MICROGRAFX THE PARTNERSHIP COULDN'T HAVE COME SOON ENOUGH THE ONETIME HIGHFLIER ONE OF THE FIRST DEVELOPERS OF BUSINESS PROGRAMS FOR MICROSOFT CORP'S POPULAR WINDOWS SOFTWARE HAS SUFFERED A SLOWDOWN IN SALES GROWTH ALONG WITH DELAYS IN INTRODUCING KEY PRODUCTS FOR ITS FISCAL THIRD QUARTER ENDED DEC 31 THE COMPANY REPORTED A NET LOSS OF 11 MILLION OR 13 CENTS A SHARE AFTER RESTRUCTURING ITS EUROPEAN OPERATIONS REVENUE WAS BASICALLY FLAT AT ABOUT 179 MILLION MR TUCKER SAID HE WAS ATTRACTED TO THE HOME MARKET BY ITS POTENTIAL FOR RAPID GROWTH EVEN AS THE MARKET FOR MANY TRADITIONAL SOFTWARE TITLES HAS BEGUN TO PLATEAU THE EXECUTIVE PREDICTS SALES FROM MICROGRAFX'S NEW ATHOME DIVISION COULD ACCOUNT FOR AS MUCH AS HALF OF THE COMPANY'S REVENUE WITHIN THREE TO FIVE YEARS THIS IS A MARKET THAT IS GROWING JUST EXPLOSIVELY SAID JEFFREY TARTER PUBLISHER OF SOFTLETTER AN INDUSTRY NEWSLETTER IN WATERTOWN MASS MOST OF THE BUSINESS CATEGORIES ARE SATURATED MR TARTER NOTES THOUGH THAT TAPPING INTO THE HOME MARKET MEANS TAKING ON HEAVYWEIGHTS LIKE MICROSOFT AND BRODERBUND SOFTWARE INC MICROSOFT FOR INSTANCE LAST MONTH ANNOUNCED ITS FIRST WRITING AND ART PROGRAM FOR CHILDREN ALONG WITH PLANS TO SELL THE SOFTWARE THROUGH TELEVISION HOMESHOPPING NETWORKS WHILE MR TARTER NOTES THAT MICROGRAFX HAS NO NAME IDENTIFICATION AMONG CONSUMER SOFTWARE BUYERS HE SAID THE CRAYOLA NAME SHOULD GIVE THE NEW PRODUCTS INSTANT CREDIBILITY WHENEVER YOU CAN BORROW A WELLKNOWN BRAND IT HELPS HE SAID CRAYOLA IN THIS MARKET IS A MUCH STRONGER BRAND NAME THAN EVEN MICROSOFT OR LOTUS DEVELOPMENT CORP FRED GEYER DIRECTOR OF BUSINESS DEVELOPMENT AT BINNEY & SMITH BASED IN EASTON PA SAID THE MICROGRAFX SOFTWARE TITLES WILL BE THE FIRST OF MANY FOR THE COMPANY WE THINK THIS WILL BE A CORE BUSINESS FOR BINNEY & SMITH HE SAID WE THINK THERE'S AN AWFUL LOT OF POTENTIAL HERE IN NASDAQ STOCK MARKET TRADING MICROGRAFX SHARES WERE UNCHANGED AT 11 EACH 9402010024 940105 LEISURE & ARTS OPERA LEAN TIMES AT THE SAN FRANCISCO OPERA BY DAVID LITTLEJOHN SAN FRANCISCO THIS HAS NOT ON THE WHOLE BEEN A HAPPY YEAR AT THE WAR MEMORIAL OPERA HOUSE FACING A 6 MILLION DEFICIT LAST JANUARY THE SAN FRANCISCO OPERA BEGAN BY AXING FUTURE FESTIVAL SEASONS IN THE SUMMER MANAGEMENT THEN ANNOUNCED TURANDOTFASHION THE CHOPPING OF 14 HEADS THOUGH THE BIGGEST OF THEM BELONGING TO GENERAL MANAGER LOTFI MANSOURI REMAINED FIRMLY MYSTERIOUSLY ATTACHED HIS CONTRACT RENEWED FOR YET ANOTHER SIX YEARS NEXT THE COMPANY SCUTTLED PLANS FOR A NEW DIE MEISTERSINGER AND SCHEDULED SEVERAL REVIVALS ANDREI SERBAN WHOSE 1982 INTERPRETATION OF I PURITANI WAS RECREATED HERE BY JONATHAN EATON INSISTED ON CHOKING OFF BELLINI'S LYRICISM AND LOGIC AT EVERY TURN TO BEGIN AT THE END HE HAS THE HERO'S RIVAL SNEAK OUT JUST BEFORE THE FINAL CURTAIN AND STAB HIM IN THE BACK THEREBY SPARING US THE SENTIMENTAL TACKINESS OF A HAPPY ENDING THE CHORUS IN HIS PRODUCTION IS MADE UP OF BLOODIED DYING SOLDIERS HOBBLING OR BEING DRAGGED INTO THE GRIM CASTLE COURTYARD TO REMIND US THAT THERE'S A WAR GOING ON IN ACT II THEY SING A LONG SONG OF SYMPATHY FOR POOR JILTED ELVIRA THE SOPRANOGONEMAD CONSIDERING THEIR CONDITION IT SEEMED HEROIC OF THEM TO WORRY SO MUCH ABOUT HERS THE WALKING WOUNDED LATER STAGGER TOGETHER TO SING BELLINI'S HEROIC VICTORY SONG IN ACT III THE RETURNED HERO KISSES A BLEAK NO MAN'S LAND COVERED WITH SNOW WHILE BLISSFULLY DESCRIBING THE GREEN GREEN TREES OF HOME AS HIS DOTTY BELOVED PLAYS HIDEANDSEEK BEHIND A JUNKED CINDERELLA COACH THE WHOLE PRODUCTION WAS LITTLE MORE THAN A DRAB ILLCONCEIVED FRAME FOR JUNE ANDERSON'S EVERLASTING MAD SCENE IN ACT II PLUS A FEW MORE OF HER MAD MOMENTS IN ACT III MS ANDERSON'S VOICE IS SLIGHTLY HARSHER AND DRIER THAN JOAN SUTHERLAND'S THE ELVIRA STANDARD FOR OUR TIME AND SHE LACKS DAME JOAN'S FULL ROUNDED LOVELINESS OF TONE BUT HER SINGING IN THIS CHALLENGING BEL CANTO ROLE WAS PRECISE POWERFUL VARIED EXPRESSIVE AND SUPERBLY CONTROLLED WITH SOME REAL HYSTERIA IN THE TRILLS IF ONLY WE COULD HAVE HEARD IT AT A CONCERT WITHOUT THE DUMB DUN SETS AND THE WAR WOUNDED LA CLEMENZA DI TITO WAS PLAYED IN 18THCENTURY COSTUMES AGAINST ONE HUGE WORN ROMAN BRICK WALL PUNCTURED BY A SURREALIST HOLE ALTHOUGH HE ACCEPTED THE FOOLISH HOUSTON/GLASGOW NOTION OF A RAGGLETAGGLE ROMAN CHORUS OUT OF HOGARTH DIRECTOR ALBERT TAKAZAUCKAS MANAGED TO MOVE AND MOTIVATE HIS GENERALLY EXCELLENT CAST IN A MANNER THAT OFTEN MADE BOTH HUMANE AND THEATRICAL SENSE NO EASY FEAT FOR A RITUALIZED OPERA SERIA STAGED IN AN INHOSPITABLE SET EVEN WITH ALL OF MOZART'S FINE MUSIC TO CARRY IT ALONG FREDERICA VON STADE WHO WILL APPARENTLY NEVER GROW OLD WAS AN EVEN MORE ENGAGING SEXTUS VOCALLY AND DRAMATICALLY THAN SHE WAS AT HER DEBUT IN THE ROLE HERE 32 YEARS AGO AND DONALD RUNNICLES THE COMPANY'S MUSICAL DIRECTOR PROVED HE COULD HANDLE LATE MOZART WITH AS MUCH TACT AND INSIGHT AS HE HANDLES BIGGERGUN COMPOSERS THE ONE GENUINELY NEWTOTHEWORLD PRODUCTION WAS THE SFO'S FIRST I VESPRI SICILIANI BY VERDI IN A PRODUCTION BY DIRECTOR CHRISTOPHER ALDEN AND HIS DESIGNING PARTNER PAUL STEINBERG SIR CHARLES MACKERRAS THE COMPANY'S NEW PRINCIPAL GUEST CONDUCTOR LED THE BAND WITH THE INTELLIGENCE THAT IS HIS TRADEMARK AROUND THE WORLD CAROL VANESS CHRIS MERRITT TIMOTHY NOBLE AND JAMES MORRIS SANG THE LEADS WITH THEIR USUAL HIGH VOCAL PROFICIENCY BUT NONE OF THIS COULD OVERCOME THE STUPIDITY OF WHAT WAS GOING ON ONSTAGE WHICH INCLUDED SUCH NONSENSE AS A SCRAMBLING MASS ABDUCTION OF SICILIAN MAIDENS BY 19THCENTURY FRENCH SOLDIERS THOUGH THE WORK IS SET IN 1282 INSIDE TILTING SYMBOLIC NEOFASCIST SETS FORTUNATELY I HAD GOT MY VERDI FIX A WEEK EARLIER IN LOS ANGELES WHERE LEONA MITCHELL AND PLACIDO DOMINGO SANG AMELIA AND KING GUSTAVUS AKA RICCARDO IN UN BALLO IN MASCHERA WHEN THEY JOINED FORCES FOR THE GREAT SECONDACT DUET TWO STRONG MATURE AND DISTINCTIVE VOICES TWINED INTO A SINGLE GOLDEN SOUND IN SAN FRANCISCO'S MEISTERSINGER IT WAS PRIMARILY MAESTRO RUNNICLES AND THE OPERA ORCHESTRA WHO ALLOWED US TO ADMIRE MUCH OF WHAT WAGNER WROTE OVERCOMING MAJOR WEAKNESSES IN CASTING AND DIRECTION AT FIRST I THOUGHT BERND WEIKL A FINE SINGING ACTOR FROM HAMBURG WAS PLAYING HANS SACHS AS SOMEONE TOO YOUNG AND VIGOROUS FOR THE RESPECT AND AUTHORITY HE SUPPOSEDLY COMMANDS BUT HIS GRUMPY SHOEMAKERPOET BECAME MORE CREDIBLE AND CONVINCING AS THE OPERA PROGRESSED HIS CHRISTENING OF THE PRIZE SONG AS HE RUEFULLY GRANTS HIS BLESSING TO THE YOUNG COUPLES NONE OF THE FOUR QUITE GOOD ENOUGH THOUGH BEN HEPPNER'S SWEET SOARING TENOR DESERVED A PRIZE WAS A HEARTBREAKER AS IT OUGHT TO BE AFTER GRUMBLING SILENTLY FOR TWO OR THREE HOURS I MELLOWED ALONG WITH THE MUSIC OF ACT III AND LEFT CONTENT FRIENDS OF MINE THOUGHT THAT DAVID HOCKNEY'S SPECTACULAR DECORS AND IAN FALCONER'S NOLESSSPECTACULAR COSTUMES DETRACTED FROM THE EMOTIONAL SERIOUSNESS OF TURANDOT BUT AS I'VE NEVER DETECTED ANY IN IT I REVELED IN THEIR DAZZLING CONTRIBUTIONS WERE EVER REDS SO UTTERLY RED GREENS SO HOLLYWOOD GREEN BLUES SO MOODILY BLUE IS THERE A LIVING STAGE ARTIST WHO CAN PLAY MORE KNOWINGLY THAN DAVID HOCKNEY WITH ORGANIC SHAPES SUDDEN WASHES OF LIGHT RUNAWAY PERSPECTIVES GONE MAD I WOULD RANK HIS VISUAL CONCEPTION OF TURANDOT ON A LEVEL WITH HIS CLASSIC THE RAKE'S PROGRESS AND THE MAGIC FLUTE AND WELL ABOVE HIS TRISTAN AND DIE FRAU OHNE SCHATTEN WHICH I SAW IN LOS ANGELES JUST LAST MONTH WITH THREE EXCELLENT FEMALE LEADS GWYNETH JONES ELLEN SHADE AND JANE HENSCHEL THIS TURANDOT CONFIRMED MY SUSPICION THAT MR HOCKNEY'S UNIQUE VISUAL STYLE IS ILLADAPTED TO OPERAS THAT ARE THEMSELVES DEVOID OF ANYTHING LIKE HIS OWN CHILDLIKE WIT AND DROLL IMAGINATION HE MAY SOMETIMES TWIST OTHER MEN'S OPERAS TO FIT HIS STYLE BUT IN THE CASE OF TURANDOT I DEFINITELY THINK HE IMPROVED IT DONALD RUNNICLES THE REAL STAR OF THIS SEASON EXTRACTED EVERY OUNCE OF ENERGY FROM PUCCINI'S VOLUPTUOUS SCORE BUT I WAS DISMAYED TO HEAR EVA MARTON THE OPENING NIGHT PRINCESS GASPING WOBBLING STRAINING FOR HER HIGH NOTES SO I WENT AGAIN TO SEE IF A MORE SYMPATHETIC SOPRANO COULD PULL THE WHOLE THING TOGETHER AND SHE DID EALYNN VOSS THE SECOND TURANDOT EMITS A MOLTEN FLOW OF GORGEOUS SOUND AND PROMISINGLY RECALLS HER TEACHER BIRGIT NILSSON THE SECOND TENOR VLADIMIR POPOV WAS ALSO BETTER THAN THE FIRST MICHAEL SYLVESTER UNFORTUNATELY IT WAS THE FIRST CAST THAT PBS VIDEOTAPED FOR ITS NEW YEAR'S DAY TELECAST IT WAS STILL WORTH SWITCHING TO AFTER THE BOWL GAMES TO HEAR THE ORCHESTRA AND CHORUS AND TO SEE WHATEVER YOUR TV SET COULD CAPTURE OF THOSE ASTONISHING COSTUMES AND SETS SEE RELATED LETTER LETTERS TO THE EDITOR MORE THAN WE WANTED TO SEE OF SALOME' WSJ FEB 1 1994 9401050121 YY94 MM02 9402010023 940106 LOOKING FOR HOME DESCENDANTS OF THOSE WHO FLED IN THE '40S DESCEND ON LATVIA IT IS LAND OF OPPORTUNITY FOR SOME CULTURE SHOCK FOR A GOOD MANY OTHERS ZOBS FAMILY'S HARSH LIFE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL RIGA LATVIA JUST TWO MONTHS AGO THE ZOBS FAMILY LIVED IN A BIG HOUSE ON A WOODED ACRE NEAR OTTAWA AND ENJOYED MANY LUXURIES OF THE WEST TWO CARS AN ELECTRIC GARAGE DOOR BABY SITTERS AND EATING OUT IN RESTAURANTS TODAY AS NEW RESIDENTS OF LATVIA THEY RENT FOUR ROOMS IN A CRUMBLING HOUSE OUTSIDE RIGA WITH A LITTERED MUD PIT FOR A FRONT YARD AND NOT ENOUGH HOT WATER FOR BATHING AND DOING THE LAUNDRY THEIR YEAROLD SON LAURIS HAS DEVELOPED RASHES THEIR FIVEYEAROLD SON DAINIS WHO DOESN'T SPEAK LATVIAN CAN'T UNDERSTAND HIS SCHOOLMATES AND SLEEPS FITFULLY THE ZOBSES HAVEN'T MADE NEW FRIENDS AND THEY HAVE CRASHED THEIR PONTIAC WE'RE SUFFERING HERE SAYS KARLIS ZOBS ONE OF SEVERAL HUNDRED WESTERNERS OF LATVIAN DESCENT WHO HAVE RECENTLY COME TO LIVE IN THIS FORMER SOVIET REPUBLIC WE'RE OUT OF OUR ELEMENT BUT MR ZOBS A 56YEAROLD CONSTRUCTION CONTRACTOR AND A US CITIZEN WHO LEFT LATVIA AS A CHILD FEELS THAT HIS HOMELAND NEEDS HIM AND HIS BUILDING SKILLS IF YOU'VE TALKED FOR 50 YEARS ABOUT GETTING YOUR COUNTRY BACK AND YOU GET IT BACK THERE'S A MOMENT OF TRUTH EITHER YOU GO THERE YOURSELF OR ALL YOUR TALK WAS A LIE IT'S A MATTER OF PERSONAL INTEGRITY HIS WIFE INTA WHO WAS BORN IN CANADA TO LATVIAN PARENTS ISN'T AS DEVOTED TO THE PRINCIPLE MOVING HERE WAS SUCH A SHOCK SHE SAYS THE ZOBSES ARE PART OF AN ODD COUNTERTREND IN IMMIGRATION IN EASTERN EUROPE PEOPLE DRAWN TO LATVIA BY PATRIOTISM A SENSE OF OBLIGATION AND IN SOME CASES ECONOMIC OPPORTUNITY MOSTLY THE NEWCOMERS ARE CHILDREN OF LATVIANS WHO ESCAPED IN 1944 WHEN THE SOVIETS OVERRAN THIS BALTIC NATION FOR MANY IT IS A TRIUMPHANT RETURN THEY ARE LAWYERS BUSINESSMEN AND YOUNG COLLEGE GRADUATES ARRIVING BY JET IN A COUNTRY THEIR PARENTS LEFT ON FOOT AS REFUGEES BUT THEY ARE FINDING THAT LATVIA ISN'T THE MAJESTIC PLACE OF THEIR PARENTS' REVERIES THOUGH THE COUNTRY IS MOVING QUICKLY TO RAISE ITS LIVING STANDARDS THOSE ACCUSTOMED TO BETTER CONDITIONS FIND IT HARD TO MAKE A HOME HERE ILMARS LEJINS A 22YEAROLD SWEDE BORN TO LATVIAN IMMIGRANTS FOUND THAT OUT WHEN HE WAS BEATEN UP ON THE STREETS OF RIGA BY A GROUP OF RUSSIANS WHO WERE DRUNK AND ANNOYED THAT HE COULDN'T SPEAK RUSSIAN PETERIS AND LIENE KALNINS A YOUNG COUPLE WHO HAIL RESPECTIVELY FROM THE US AND CANADA DISCOVERED THE DIFFERENCE WHEN THEY TRIED TO VISIT AN ANCESTRAL HOME THAT HAD BEEN BULLDOZED TO MAKE WAY FOR A SOVIET COMMUNAL FARM WHEN THEY WENT TO VISIT A RELATIVE IN A RIGA HOSPITAL THEY FOUND CATS AND COCKROACHES WALKING THE FLOOR WHEN OUR GRANDPARENTS LIVED HERE BEFORE THE WAR YOU COULD HONESTLY SAY IT WAS PART OF EUROPE SAYS MRS KALNINS WHO ARRIVED HERE WITH HER HUSBAND IN 1990 TODAY YOU CAN'T SAY THAT IT'S WAY BEHIND MR KALNINS RUNS A COMPUTERGRAPHICS BUSINESS MRS KALNINS WORKS AS A TRANSLATOR ELMARS TANNIS WHO OPENED FREDI'S BAR HERE LAST WINTER WITH FELLOW CANADIAN PETERIS RUGELIS KNEW HE WASN'T IN TORONTO ANYMORE WHEN THUGS KNOCKED ON HIS DOOR TO COLLECT PROTECTION MONEY 10 OF HIS PROFITS HE COMPLIED HAVING HEARD SCUTTLEBUTT THAT IT COSTS ONLY 250 TO HAVE SOMEONE KILLED IN LATVIA WHERE MONTHLY WAGES AVERAGE LESS THAN 100 COMPOUNDING THEIR PROBLEMS THE NEW ARRIVALS HAVE STIRRED SOME RESENTMENT AMONG NATIVE LATVIANS EVEN THE POOREST RETURNEE IS RICH BY LATVIAN STANDARDS SOME OF THE NEWCOMERS CAN AFFORD TO SHOP IN THE FASHIONABLE STORES OPENING IN RIGA AND THEY MAY GET THE BEST JOBS WITH FEW EXCEPTIONS THE FOREIGNERS HAVEN'T GIVEN UP THEIR OTHER CITIZENSHIP A SIGN THAT THEY ARE RELUCTANT TO TRULY CAST THEIR LOT WITH LATVIA FROM THEIR STANDPOINT MANY ARE SACRIFICING A LOT BUT THAT ISN'T HOW SOME LATVIANS SEE IT THEY DON'T WANT TO FACE HARD TIMES AND CHANGE THE WAY THEY ARE USED TO LIVING SAYS KASPARS KAULINS THE LATVIANBORN DEPUTY EDITOR OF DIENA THE COUNTRY'S LARGEST DAILY SOME REALLY WANT TO HELP US REBUILD THE STATE BUT AT THE SAME TIME IT SEEMS SOME HAVE COME ONLY BECAUSE OF THEIR BIG AMBITIONS LATVIA CONTROLLED BY FOREIGN POWERS FOR CENTURIES WAS INDEPENDENT BETWEEN 1918 AND 1940 WHEN IT WAS TAKEN OVER BY THE NAZIS BEFORE THE SOVIETS CAME SOME 200000 LATVIANS FLED TO THE WEST BEFORE THE END OF 1944 AFTER LATVIA REGAINED ITS INDEPENDENCE IT OFFERED CITIZENSHIP TO WESTERN LATVIANS THE SEVERAL HUNDRED WESTERNERS WHO HAVE MADE GOOD ON THEIR PARENTS' INTENTION TO RETURN TO LATVIA SOMEDAY ARE STATISTICALLY NEGLIGIBLE IN A COUNTRY OF 26 MILLION THAT IS ACTUALLY LOSING POPULATION BUT THEIR PRESENCE IS FELT THE JUSTICE MINISTER DEFENSE MINISTER WELFARE MINISTER AND HEAD OF LATVIA'S CUSTOMS DEPARTMENT ALSO ARE WESTERNERS OTHER WESTERNERS ARE OPENING BUSINESSES ADVISING THE GOVERNMENT AND SERVING AS LATVIAN DIPLOMATS IN OTHER COUNTRIES IT SEEMS LIKE AN AWESOME RESPONSIBILITY SAYS VALDIS V PAVLOVSKIS A LATVIANBORN CALIFORNIA CITY PLANNER TURNED DEFENSE MINISTER GROWING UP IN EXILE IN THE WEST CHILDREN OF REFUGEES SPOKE LATVIAN AT HOME AND WENT TO LATVIAN SUNDAY SCHOOLS CAMPS AND FOLK DANCES THEY HEARD STORIES ABOUT AMBER SHORES AND LARGE FAMILY HOMES WITH SERVANTS' QUARTERS PARENTS CALLED RIGA THE PARIS OF THE NORTH THEY WORE SILVER ROPE RINGS TO SHOW SOLIDARITY I WAS RAISED TO BE HERE SAYS MR LEJINS WHO HAS NO DOUBT ABOUT HIS TRUE NATIONALITY I'M NOT A SWEDE I'M A LATVIAN JUST BECAUSE YOU'RE BORN IN A BARN DOESN'T MEAN YOU'RE A HORSE SOME WESTERN LATVIANS FEEL THEIR CONSCIENCE TUGGING THEM BACK INESE BIRZNIECE A 42YEAROLD ATTORNEY FROM LOS ANGELES IS ONE OF 16 WESTERNERS IN LATVIA'S 100MEMBER PARLIAMENT IN 1990 SHE GAVE UP A 100000 SALARY TO WORK HERE FOR 700 A YEAR BUT SHE FEELS FULFILLED BY HER WORK AS CHAIRWOMAN OF PARLIAMENT'S HUMANRIGHTS COMMITTEE AN IMPORTANT POSITION IN THIS EMERGING DEMOCRACY I DON'T HAVE TO GO TO THERAPISTS AS MANY DO IN CALIFORNIA TO ASK 'WHY AM I HERE' SHE SAYS I KNOW THE ANSWER I'M DOING WHAT I CAN TO IMPROVE THE WORLD FILIP KLAVINS HAD A SIXFIGURE INCOME AS A REALESTATE LAWYER IN NEW YORK WHERE HE LIVED ON THE UPPER EAST SIDE AND HAD BECOME JADED I WAS HELPING ONE INCREDIBLY RICH GUY PASS MONEY TO ANOTHER INCREDIBLY RICH GUY AND THAT WAS IT HE SAYS HE HAS SET UP A LAW OFFICE IN RIGA WITH RAYMOND SLAIDINS A CALIFORNIA LAWYER WHO LEFT BEHIND A 90000 JOB AND A SAAB TURBO IN LATVIA AT LEAST WE'RE MAKING A DIFFERENCE MR KLAVINS SAYS HE HAS REGULAR MEETINGS WITH THE PRIME MINISTER AND HAS BIG CLIENTS HERE TOO INCLUDING KELLOGG CO AND COCACOLA CO THERE ARE PARTICULAR PSYCHIC REWARDS BACK IN THE WEST LATVIANS ARE JUST ANOTHER ETHNIC MINORITY THE NEWCOMERS BRAVE HARDSHIPS BECAUSE THEY FEEL LIBERATED THEY HEAR LATVIAN SPOKEN ON BUSES AND WRITTEN ALL OVER NEWSSTANDS THESE ARE ALL MY PEOPLE SAYS JANA TETERE WHO ARRIVED FROM ENGLAND IN 1990 FOR SOME THE SACRIFICES THEY MAKE IN LIVING STANDARDS ARE OUTWEIGHED BY OPPORTUNITIES HERE AROUND FREDI'S BAR YOUNG WESTERNERS WHO HAD LACKLUSTER JOB PROSPECTS AT HOME TALK ABOUT HOW THEY HAVE BECOME BIG FISH IT'S THE WILD WILD EAST SAYS MR TANNIS WHOSE BAR HAS PROFIT MARGINS OF 30 TO 45 ON ITS MONTHLY SALES OF 5000 THERE'S MONEY TO BE MADE DESPITE THE PROTECTION MONEY THAT MUST BE PAID TO THE RUSSIAN MAFIA FOR NILS MELNGAILIS FROM BOSTON THE CHOICE WAS EASY BY TAKING A POSTING IN RIGA FOR COOPERS & LYBRAND HE BECAME A PARTNER AT 28 ONE OF THE ACCOUNTING FIRM'S YOUNGEST BUT MANY NEWCOMERS ARE DISILLUSIONED THEY HAVE TO ADJUST TO JUST SIX HOURS OF DAYLIGHT IN THE DEAD OF WINTER GRAY SKIES AND HEADLIGHTS THAT COME ON AT NOON THE GOVERNMENT DOESN'T MAKE HEATING FUEL AVAILABLE UNTIL NOVEMBER AND MANY CASHIERS STILL DO THEIR COMPUTATIONS ON AN ABACUS THE NEW ARRIVALS WITNESS MOB VIOLENCE IN THE STREETS GET USED TO EATING BACON FAT ON RYE BREAD AND FIND TOILET PAPER SO STIFF IT CAN DOUBLE AS STATIONERY MS TETERE HAD SUCH A TOUGH TIME HERE THAT SHE MOVED BACK TO ENGLAND BUT SHE NOW IS GIVING RIGA ANOTHER TRY WE WERE BROUGHT UP TO BELIEVE THIS WAS THE LAND OF MILK AND HONEY THAT EVERY PERSON WAS GOOD AND EVERYTHING WAS PERFECT SHE SAYS IT WASN'T IN ANY WAY SIMILAR TO WHAT MY PARENTS SAID NOBODY HAD WARNED HER FOR INSTANCE THAT SHE WOULD HAVE ROACHES IN HER OFFICEFAX MACHINE AT THE WORLD FEDERATION OF FREE LATVIANS SHE HADN'T EXPECTED TO SEE CHILDREN BEGGING ALL OVER TOWN NOR WAS SHE PREPARED FOR THE NEW NATIONAL PASTIMES AS SHE PUTS IT PUSHING SHOVING AND SPITTING INSTEAD OF A WARM EMBRACE FROM HER FATHER'S RELATIVES IN LATVIA THEY DID NOTHING BUT ASK HER FOR MONEY SHE COMPLAINS SHE ALSO SAYS THAT FOR THREE YEARS SHE DATED A LATVIAN WHO EVENTUALLY DUMPED HER FOR AN 18YEAROLD NATIVE DECLARING WESTERN WOMEN TOO EMANCIPATED THE ZOBSES DID IN SOME WAYS ANTICIPATE WHEN THEY LEFT OTTAWA THAT IT WOULDN'T BE EASY FOR THEM MR ZOBS HADN'T LIVED IN LATVIA SINCE HE FLED AS A CHILD WITH HIS PARENTS TO THE US MRS ZOBS 36 THE DAUGHTER OF WEALTHY LATVIANS WHO HAD GONE TO CANADA GREW UP IN THE CARE OF A NANNY AND ENJOYED A PAMPERED LIFE SHE SAYS I NEEDED A LITTLE ADVENTURE MRS ZOBS SAYS BUT SHE GOT MORE THAN SHE BARGAINED FOR SOON AFTER THEY ARRIVED NOV 6 THE TEMPERATURE DROPPED TO 14 DEGREES FAHRENHEIT THEN THE SNOW CAME THEN THE MUD THE ZOBSES CAN'T GET THEIR MAYTAG TO WORK SO MRS ZOBS DOES THE LAUNDRY IN THE BATHTUB THE HOT WATER TURNS COLD ONCE THE TUB IS FILLED TO THE DEPTH OF AN INCH AND A HALF MRS ZOBS BATHES WITH THE TWO BOYS IN THE PUDDLE DAINIS ENROLLED AT THE ONLY MONTESSORI SCHOOL IN THE AREA TELLS HIS MOTHER HE IS AFRAID OF BEING MURDERED IN HIS SLEEP TO HIM THE HOUSE IS A SLUM BY LATVIAN STANDARDS IT IS AVERAGE DAINIS SAYS HE MISSES HIS FRIENDS IN CANADA THEY HAVE BETTER TOYS HE SAYS MR ZOBS HAS HIT A GLASS WALL TRYING TO BEFRIEND LATVIANS THEY THINK WE'RE HERE TO GET SOMETHING THAT BELONGS TO THEM HE SAYS THE COUPLE PAY 300 A MONTH IN RENT 10 TIMES THE MARKET RATE WHEN HE MENTIONS THAT TO LATVIANS HE SAYS THEY SAY THAT'S THE WAY IT OUGHT TO BE MR ZOBS PLANS TO STAY DESPITE THE PROBLEMS HE WANTS TO OPEN A FASTENER BUSINESS MAKING NAILS SCREWS AND SUCH HE CAN ALSO EARN ABOUT 25 A DAY IN CONSTRUCTION THE ONLY WAY I COULD NOT STICK IT OUT IS AN ABSOLUTE DIVORCE THREAT HE SAYS THIS IS MY LAST HURRAH AND I'M HAVING FUN MRS ZOBS IS SETTLING IN TOO SLOWLY SHE JOINED A CHOIR SIGNED DAINIS UP FOR TENNIS LESSONS AND IS LOOKING FOR A PLAY GROUP FOR LAURIS WHEN IT'S WARM ENOUGH SHE WALKS ON THE WHITE SAND ALONG THE GULF OF RIGA ADMIRING THE BIRCHES AND EVERGREENS THIS IS THE STUFF MY NANNY USED TO TELL ME ABOUT SHE SAYS SHE ALSO HOPES TO GET BACK A 150ACRE FAMILY FARM THAT WAS TURNED INTO A PARK BY THE SOVIETS BUT MRS ZOBS DOESN'T MAKE ANY PROMISES SHE GAVE HER TENANTS IN OTTAWA ONLY A ONEYEAR LEASE AND SHE BOUGHT ROUNDTRIP TICKETS TO LATVIA WITH AN OPEN RETURN SHE WEARS A MAPLELEAF PIN ON HER SHIRT AND HANGS A CANADIAN FLAG IN THE BOYS' ROOM I'LL ALWAYS HAVE TIES HERE BUT IT TAKES AN AWFUL LOT TO PULL YOU HERE SHE SAYS I CONSIDER MYSELF CANADIAN OF LATVIAN HERITAGE BUT CANADIAN FIRST AND FOREMOST SEE RELATED LETTER LETTERS TO THE EDITOR THE ODD TWIST IN LATVIAN HISTORY WSJ FEB 1 1994 9401060006 YY94 MM02 9402010022 940112 NEW VICTORIANS' DON'T EARN THAT LABEL BY GERTRUDE HIMMELFARB THERE CAN SURELY BE NO MORE DAMNING CHARGE BROUGHT AGAINST A FEMINIST THAN TO BE CALLED VICTORIAN YET THAT IS THE WORD THAT IS CROPPING UP AGAIN AND AGAIN TO DESCRIBE THE SCHOOL OF FEMINISM LED BY CATHARINE MACKINNON THESE ARE THE FEMINISTS WHO WOULD PROHIBIT PORNOGRAPHY CENSOR HATE SPEECH PUNISH SEXUAL INNUENDOES ON THE GROUND OF SEXUAL HARASSMENT PRESCRIBE DETAILED CODES OF SEXUAL CONDUCT MAKE DATE RAPE AS ODIOUS AN OFFENSE AS VIOLENT RAPE AND SUBJECT OFFENDERS AND POTENTIAL OFFENDERS TO SENSITIVITY AND CONSCIOUSNESSRAISING SESSIONS IN A RECENT ISSUE OF NEWSWEEK SUSAN FALUDI A DEFENDER OF MS MACKINNON AND HERSELF A MILITANT FEMINIST HOTLY DENIED THAT EITHER WAS ANY KIND OF VICTORIAN OR EVEN NEOVICTORIAN AS ONE WITH A PROPRIETARY INTEREST IN VICTORIANISM I MUST SAY THAT ON THIS ISSUE IF ON NO OTHER MS FALUDI IS RIGHT I KNOW THE VICTORIANS AND THESE FEMINISTS ARE NO VICTORIANS THERE IS ALL THE DIFFERENCE IN THE WORLD BETWEEN THE VICTORIAN CODE OF MANNERS AND MORALS SO DEEPLY EMBEDDED IN TRADITION AND CONVENTION THAT IT WAS LARGELY INTERNALIZED AND VERY NEARLY UNCONSCIOUS AND ONE THAT IS ARTIFICIALLY CONTRIVED OFFICIALLY LEGISLATED AND COERCIVELY ENFORCED THE VICTORIANS WOULD HAVE BEEN AS MUCH APPALLED BY THE OVERTNESS AND FORMALITY OF THE NEW REGULATIONS ABOUT SEXUAL CONDUCT EXPLICIT CONSENT REQUIRED FOR EVERY STAGE OF THE SEXUAL RELATION AS BY THE KIND OF CONDUCT PROMISCUITY THEY WOULD HAVE CALLED IT IMPLICITLY SANCTIONED BY THOSE REGULATIONS THEY WOULD ALSO HAVE BEEN APPALLED BY THE NEW SPECIES OF MORALIST UNDERTAKING THIS NEW MORAL REFORMATION THE NEW VICTORIAN RESEMBLES NOTHING SO MUCH AS MRS GRUNDY A MINOR CHARACTER IN A MINOR PLAY A PREVICTORIAN PLAY AT THAT WHO INTIMIDATED HER NEIGHBOR BY THE THOUGHT WHAT WILL MRS GRUNDY SAY BUT MRS GRUNDY WAS A FIGURE OF MOCKERY IN THE PLAY AND REMAINED THAT WHEN SHE WAS IMMORTALIZED IN THE LANGUAGE AS A SYMBOL OF THE NARROWMINDED SELFRIGHTEOUS SELFAPPOINTED SOCIAL CENSOR THE MRS GRUNDYS OF OUR DAY COMMAND THE RESPECT OF THOSE WHO PROFESS TO BE IN THE VANGUARD OF ENLIGHTENED THOUGHT AND SOME OF THEM THE ENFORCERS OF THE NEW MORALITY FACILITATORS AS THEY ARE SOMETIMES CALLED ENJOY ALL THE PERQUISITES OF OFFICIAL PAID POSITIONS IN CORPORATIONS AND UNIVERSITIES THE NEW VICTORIAN BRINGS TO MIND ANOTHER FICTIONAL CHARACTER MRS JELLYBY OF BLEAK HOUSE WHO IS TOO ENGROSSED IN THE AFFAIRS OF THE NATIVES OF BOORIOBOOLAGHA TO ATTEND TO HER OWN BROOD OF HUNGRY DIRTY NEGLECTED CHILDREN FOR DICKENS SHE IS THE EXEMPLAR OF TELESCOPIC PHILANTHROPY HER EYES HAVING THE CURIOUS HABIT OF SEEMING TO LOOK A LONG WAY OFF AS IF THEY COULD SEE NOTHING NEARER THAN AFRICA TODAY'S MORALISTS HAVE THAT SAME FARAWAY FANATICAL GLINT IN THEIR EYE TELESCOPIC MORALITY WE MIGHT CALL IT TELESCOPIC MORALITY DISDAINS THE VALUES OF EVERYDAY LIFE AS EXPERIENCED BY ORDINARY PEOPLE THE BOURGEOIS VALUES OF FAMILY FIDELITY SOBRIETY CIVILITY PERSONAL RESPONSIBILITY INSTEAD IT DEVISES A NEW MORALITY THAT IS MORE INTRUSIVE AND REPRESSIVE THAN THE OLD BECAUSE IT IS MORE RECONDITE BASED NOT ON FAMILIAR ACCEPTED PRINCIPLES BUT ON NOVEL REMOTE ONES AS IF DESIGNED FOR ANOTHER CULTURE OR TRIBE THUS THE NEW VICTORIANS DO NOT CONDEMN PROMISCUITY THEY CONDEMN ONLY THOSE MEN WHO FAIL TO OBTAIN THE REQUISITE CONSENT FOR EVERY PHASE OF SEXUAL INTERCOURSE THEY DO NOT DENOUNCE DRUNKENNESS THEY DENOUNCE ONLY THOSE MEN WHO TAKE ADVANTAGE OF THEIR PARTNERS' DRUNKENNESS THEY DO NOT EXPEND THEIR INDIGNATION UPON THOSE WHO COMMIT THE BRUTAL RAPES THAT ARE ALL TOO COMMON IN OUR SOCIETY THEY DISTRACT ATTENTION FROM THAT PROBLEM AND EVEN TRIVIALIZE IT BY MAKING A GREAT ISSUE OF DATE RAPE DEFINED SO LOOSELY AS TO INCLUDE CONSENSUAL INTERCOURSE THAT IS BELATEDLY REGRETTED BY THE WOMAN THEY DO NOT PROPOSE TO DO ANYTHING ABOUT THE KINDS OF CRIME VIOLENT IRRATIONAL REPEATED AND REPEATEDLY UNPUNISHED 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 IT IS MORE THAN POLITICAL CORRECTNESS THAT IS AT ISSUE HERE ALTHOUGH IT IS THAT AS WELL IT IS THE TELESCOPIC VISION OF ACADEMICS WHO LIKE MRS JELLYBY LOOK A LONG WAY OFF FOR CAUSES TO AGITATE THEM RATHER THAN FACE UP TO THE REALITIES OF THEIR OWN SOCIETY EVEN TO THE REALITIES OF THEIR OWN ACADEMIES THE SAME PROFESSORS WHO WOULD EXPEL A STUDENT FOR VIOLATING THE NEW CODE OF SEXUAL CONDUCT WOULD BE INDIGNANT IF SUCH A CODE WERE APPLIED TO THEIR PERSONAL LIVES ONE CAN HEAR THEIR PASSIONATE APPEALS TO ACADEMIC FREEDOM AND THE SANCTITY OF TENURE IT IS NOT SO LONG AGO THAT ACADEMIC CONTRACTS INCLUDED A CLAUSE PERMITTING THE DISMISSAL OF A PROFESSOR ON THE GROUNDS OF MORAL TURPITUDE WHEN WAS THE LAST TIME THAT CLAUSE WAS INVOKED OR EVEN INCLUDED IN A CONTRACT TELESCOPIC MORALITY HAS THE EFFECT NOT ONLY OF DISTANCING THE NEW MORALITY FROM THE OLD IT ALSO DISTANCES MORAL RESPONSIBILITY FROM THE MORAL AGENT THIS IS NOT ALTOGETHER NEW WE HAVE LONG BEEN FAMILIAR WITH THE TRANSFERENCE OF RESPONSIBILITY FROM THE INDIVIDUAL TO SOCIETY FROM THE CRIMINAL TO THE ECONOMIC AND SOCIAL CONDITIONS THAT ARE THE PRESUMPTIVE CAUSES OF HIS CRIMINALITY WHAT IS NEW ABOUT THE NEW MORALITY IS THE SHIFT OF RESPONSIBILITY FROM ONE INDIVIDUAL TO ANOTHER WHEN SOCIETY CAN NO LONGER PLAUSIBLY BE BLAMED FOR THE MORAL FAILING OF AN INDIVIDUAL ANOTHER INDIVIDUAL IS MADE THE FALL GUY IN CASES OF RAPE OR RACIAL CONFLICTS THE NEW VICTORIAN ALMOST INVARIABLY PLACES THE BURDEN OF GUILT UPON THE PRIVILEGED OR HEGEMONIC PERSON THE MAN RATHER THAN THE WOMAN THE WHITE RATHER THAN THE BLACK BY THE SAME TOKEN THE VICTIM IS DEFINED AS SUCH BY VIRTUE OF HIS OR MORE OFTEN HER UNPRIVILEGED STATUS THUS EVEN WHEN MORAL RESPONSIBILITY SEEMS TO BE ASSIGNED TO AN INDIVIDUAL THE INDIVIDUAL FUNCTIONS NOT AS AN INDEPENDENT RESPONSIBLE MORAL AGENT BUT AS A SURROGATE FOR A CLASS RACE OR GENDER THE NEW VICTORIANS IT IS EVIDENT HAVE LITTLE IN COMMON WITH THE OLD OUR LATTERDAY MRS GRUNDYS AND MRS JELLYBYS FIND IMMORALITY AND EVEN CRIMINALITY WHERE THERE HAD FORMERLY BEEN IMPROPRIETY AND IMPRUDENCE THEIR EUPHEMISMS ARE EVEN MORE OBFUSCATORY THAN THE OLD LIMBS INSTEAD OF LEGS IS RELATIVELY INNOCUOUS COMPARED WITH DIFFERENTLY ABLED IN PLACE OF HANDICAPPED AND THE CODE OF BEHAVIOR THEY SO ZEALOUSLY MONITOR IS BOTH MORE PERMISSIVE AND MORE REPRESSIVE THAN THE OLD CASUAL SEXUAL INTERCOURSE IS CONDONED WHILE A FLIRTATIOUS REMARK MAY BE GROUNDS FOR LEGAL ACTION IT IS A CURIOUS COMBINATION OF PRUDERY AND PROMISCUITY THAT IS ENSHRINED IN THE NEW MORAL CODE AN OLD VICTORIAN WOULD CALL IT CENSORSHIP WITHOUT MORALITY WHAT THE NEW VICTORIANS HAVE CREATED IS A SPECIES OF MORAL CORRECTNESS DESIGNED TO COMPLEMENT THE PREVAILING POLITICAL CORRECTNESS THEIR REAL KINSHIP IS NOT TO THE VICTORIANS BUT TO ORWELL'S BIG BROTHERS OR BIG SISTERS IT MAY BE ONE NEED LOOK NO FURTHER BACK THAN TO 1984 TO FIND THEIR PLACE IN HISTORY MS HIMMELFARB A HISTORIAN OF VICTORIAN ENGLAND IS THE AUTHOR OF ON LOOKING INTO THE ABYSS AN ESSAY COLLECTION DUE FROM KNOPF NEXT MONTH SEE RELATED LETTERS LETTERS TO THE EDITOR IT'S INJUSTICE NOT IMMORALITY WE HATE WSJ FEB 1 1994 9401120046 YY94 MM02 9401310176 940131 SCIENCE AIMING FOR THE STARS JAPAN RISKS LAUNCHING A COSTLY DUD BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN IS SHOOTING FOR FULL MEMBERSHIP IN THE GLOBAL ROCKET CLUB WITH TOMORROW'S SCHEDULED LAUNCH OF ITS MUCHDELAYED HII SPACE VEHICLE BUT CONVINCING THE WORLD THE ROCKET ISN'T A COSTLY WHITE ELEPHANT MAY PROVE DIFFICULT JAPAN'S NEARLY 22 BILLION HII PROGRAM HAS TURNED INTO A CASE OF BUREAUCRATIC OVERSTRETCH BY OPTING FOR AN AMBITIOUS ENGINE DESIGN AND A TIGHT SCHEDULE SPACEAGENCY OFFICIALS OPENED THE DOOR TO TWO SERIOUS EXPLOSIONS DURING DEVELOPMENT WHICH DELAYED THE PROJECT TWO YEARS WORSE THE HII MAY HAVE A DIFFICULT TIME PAYING FOR ITSELF IT WILL ENTER A LAUNCHSERVICES MARKET CROWDED BY THE US EUROPE CHINA AND RUSSIA AND WILL BE MORE EXPENSIVE EVEN IF THE ROCKET'S COST COMES DOWN IT COULD HAVE TROUBLE FINDING CUSTOMERS MANY ANALYSTS EXPECT THE COMMERCIAL SATELLITE MARKET TO START COOLING OFF BY 1997 WHEN THE HII WILL START CARRYING COMMERCIAL PAYLOADS AFTER WE STARTED THE PROJECT IN 1986 WE FOUND THAT THINGS WERE MUCH MORE DIFFICULT THAN WE EXPECTED SAYS EIJI SOGAME ASSISTANT EXECUTIVE DIRECTOR FOR LAUNCH SERVICES AT JAPAN'S NATIONAL SPACE DEVELOPMENT AGENCY NOW WE ARE IN A DIFFICULT SITUATION IF WE HAVE TO RELY ON THE HII FOR COMMERCIAL BUSINESS WHY DID JAPAN WHICH HAS A REPUTATION FOR BUILDING HIGHQUALITY GOODS HAVE SUCH TROUBLE MAKING A DECENT ROCKET THE ANSWER SAYS A GREAT DEAL ABOUT JAPAN'S DESIRE TO ESCAPE DEPENDENCE ON US SPACE TECHNOLOGY AND THE PRICE IT HAS BEEN WILLING TO PAY JAPAN HAS BUILT AND LAUNCHED ROCKETS SINCE 1975 BUT ALL DEPENDED AT LEAST PARTLY ON US TECHNOLOGY WITH THE HII THE FIRST ROCKET TO BE ENTIRELY DEVELOPED AND PRODUCED DOMESTICALLY JAPAN CAN SIDESTEP US RESTRICTIONS THAT HAD LIMITED IT TO LAUNCHING ONLY NONMILITARY PAYLOADS AND USAPPROVED FOREIGN SATELLITES JAPANESE OFFICIALS INSIST THAT NEITHER RESTRICTION HAS BEEN A PROBLEM BUT SAY THEY WORRIED ABOUT THE POSSIBILITY OF ADDITIONAL ONES POSSIBLY RELATED TO TRADE FRICTION GOVERNMENT OFFICIALS ALSO SAW AN OPPORTUNITY TO BUILD UP JAPAN'S LAGGING AEROSPACE SECTOR WE WANTED TO HAVE OUR OWN HIGH LEVEL OF TECHNOLOGY SAYS MR SOGAME WITHOUT THE TECHNOLOGY TO BUILD A ROCKET ON ITS OWN WE THOUGHT JAPAN WOULD BE WEAK IN OUR DEVELOPMENT OF SPACE PARTLY AS A RESULT THE SPACE AGENCY CHOSE TO DESIGN THE ROCKET WITH AN ADVANCED HIGHPERFORMANCE PROPULSION SYSTEM CALLED A STAGEDCOMBUSTION CYCLE ENGINE UNLIKE MORE CONVENTIONAL ENGINES WHICH THROW AWAY A HEFTY PROPORTION OF UNBURNT FUEL PRODUCTS THE STAGEDCOMBUSTION CYCLE ENGINE BURNS THE FUEL IN TWO STAGES ELIMINATING MUCH OF THE WASTE HAD JAPAN LOOKED WESTWARD HOWEVER IT MIGHT HAVE SEEN THE TROUBLE THE DESIGN CAUSED FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WHICH USED IT FOR THE MAIN ENGINE FOR THE US SPACE SHUTTLE IT'S AN EXTREMELY COMPLEX UNIT THAT HAS TO WORK AT HIGH SPEED AND UNDER HEAVY PRESSURES SAYS BOYCE MIX DEPUTY MANAGER FOR THE SPACE SHUTTLE'S MAIN ENGINES AT NASA'S MARSHALL SPACE FLIGHT CENTER IT'S JUST A VERY DIFFICULT MACHINE TO TUNE UP PROPERLY AND GET WORKING AS A RESULT NASA LOST AT LEAST A YEAR MR MIX SAYS JAPAN FARED WORSE TWO EXPLOSIONS ONE OF WHICH KILLED AN ENGINEER PROMPTED LENGTHY INTERNAL REEVALUATIONS AND A TWOYEAR LAUNCH DELAY JAPANESE SPACEAGENCY OFFICIALS NOW SAY THE HII IS GLITCHFREE AND READY TO CONTINUE JAPAN'S UNMATCHED RECORD OF FLAWLESS LAUNCHES TOMORROW THE HII WILL CARRY A REENTRY EXPERIMENT DESIGNED TO TEST HEATRESISTANT MATERIALS FOR JAPAN'S SPACE SHUTTLE PROJECT ITS NEXT SEVERAL PAYLOADS ALSO WILL BE SCIENCE PROJECTS OR GOVERNMENT SATELLITES JAPAN HAS HOPES OF MAKING THE HII A COMMERCIAL SUCCESS STARTING IN 1997 IT WILL CARRY ONE OR TWO SATELLITES A YEAR FOR PAYING CUSTOMERS SAYS HIROSHI IMAMURA EXECUTIVE VICE PRESIDENT OF ROCKET SYSTEM CORP THE CONSORTIUM CREATED TO HANDLE THE HII'S COMMERCIAL BUSINESS THE HII HOWEVER PROMISES AT BEST TO BE A QUIRKY COMMERCIAL LAUNCH SYSTEM THANKS TO A LONGSTANDING AGREEMENT WITH JAPANESE FISHERMEN WHO MUST CLEAR OUT OF THE RICH FISHING GROUNDS NEAR JAPAN'S SPACE COMPLEX ON THE SOUTHERN ISLAND OF TANEGASHIMA DURING LAUNCHES THE HII ONLY CAN BE LAUNCHED DURING TWO 45DAY WINDOWS EACH YEAR MOREOVER THE FIRST TWO LAUNCHES EACH WILL COST ROUGHLY 150 MILLION CONSIDERABLY MORE THAN THE 100 MILLION TO 120 MILLION THAT INDUSTRY ANALYSTS CITE AS A COMPETITIVE BENCHMARK WHAT'S MORE ANY GOVERNMENT ATTEMPT TO SUBSIDIZE THE HII'S COST WOULD LIKELY LEAD TO TRADE FRICTION WITH THE US AND EUROPE MR IMAMURA HOWEVER CLAIMS THAT WON'T BE NECESSARY SAYING VOLUME PRODUCTION OF THE HII WILL CUT LAUNCH COSTS BY 30 TO 50 AND WHILE MANY INDUSTRY EXPERTS EXPECT 19 COMMERCIAL SATELLITES TO BE LAUNCHED THIS YEAR SOME PROJECTIONS SHOW THAT FIGURE FALLING TO AS FEW AS 13 A YEAR BY THE TURN OF THE CENTURY THERE'S MORE THAN ENOUGH LAUNCH CAPACITY ALREADY THE HII WILL SIMPLY MAKE COMPETITION EVEN MORE CUTTHROAT SAYS ROBERT WHITE MARKETING DIRECTOR FOR COMMERCIAL LAUNCH SERVICES AT GENERAL DYNAMICS CORP THINGS WILL PROBABLY START SLOWING DOWN ABOUT 1997 AND PICK UP AGAIN IN 2004 OR 2005 SAYS ARLO BROWN VICE PRESIDENT OF MARTIN MARIETTA CORP'S JAPAN UNIT THESE ESTIMATES DON'T TAKE INTO ACCOUNT SATELLITES LAUNCHED INTO LOW EARTH ORBIT A DEVELOPING MARKET COMPANIES SUCH AS MOTOROLA INC HAVE AMBITIOUS PLANS FOR NETWORKS OF LOWORBITING SATELLITES TO PROVIDE WORLDWIDE TELEPHONE SERVICE BUT SOME LAUNCHINDUSTRY OFFICIALS THINK THE HII HAS A CHANCE TO BE A STRONG COMPETITOR STRICTLY BECAUSE OF ITS PEDIGREE THE ROCKET HAS A TREMENDOUS HERITAGE NO OTHER LAUNCH SUPPLIER HAS HAD 100 SUCCESS IN FLIGHT SAYS SAM MIHARA MARKETING DIRECTOR FOR MCDONNELL DOUGLAS CORP'S SPACE TRANSPORTATION DIVISION AS FOR THE PRELAUNCH PROBLEMS EVERYBODY HAS THOSE HE SAYS IN FIVE TO 10 YEARS NO ONE WILL REMEMBER THEM 9401310175 940131 ALUMINUM PACT IS SET TO CURB WORLD OUTPUT PRODUCING NATIONS AGREE TO VOLUNTARY MEASURES IN BID TO SPUR INDUSTRY BY WALL STREET JOURNAL REPORTERS MARTIN DU BOIS IN BRUSSELS AND ERLE NORTON IN PITTSBURGH MAJOR ALUMINUMPRODUCING NATIONS REACHED AN ACCORD TO SLASH GLOBAL PRODUCTION BY AS MUCH AS TWO MILLION METRIC TONS PUTTING THE BELEAGUERED INDUSTRY ON TRACK FOR RECOVERY IF PRODUCERS FOLLOW THROUGH WITH THE VOLUNTARY CUTS THE US RUSSIA CANADA AUSTRALIA NORWAY AND THE EUROPEAN UNION OVER THE WEEKEND SIGNED A MEMORANDUM OF UNDERSTANDING THE EUROPEAN COMMISSION IN BRUSSELS SAID IN A STATEMENT WHILE FULL DETAILS WEREN'T DISCLOSED THE ACCORD INCLUDES A COMMITMENT BY MOSCOW TO CURB THE REPUBLIC'S ANNUAL OUTPUT OF THE METAL BY 500000 TONS THE US AND THE EU MEANWHILE AGREED TO REFRAIN FROM TAKING TRADE ACTIONS AGAINST RUSSIAN PRODUCERS AND SEVERAL NATIONS INCLUDING AUSTRALIA MEMBERS OF THE EU AND US PROMISED TO AID THE RUSSIAN INDUSTRY'S RESTRUCTURING THIS IS A CONFIDENCEBUILDING MEASURE THAT AIMS TO GALVANIZE EACH AND EVERY ONE INTO MOVING AHEAD WITH CUTS AT THEIR OWN LEVELS AND TIMES SAID ONE OFFICIAL CLOSE TO THE TALKS BUT SOME OBSERVERS EXPRESSED SKEPTICISM OVER THE PACT BECAUSE OF ITS VOLUNTARY NATURE WHO IS GOING TO BE THE GUY THAT WILL ACCEPT THE BURDEN WHO WILL SAY IT'S NOT IN OUR SELF INTEREST AS A SINGLE COMPANY BUT AS AN INDUSTRY I WILL TAKE THE STEP AND TAKE MONEY OUT OF MY SHAREHOLDERS' POCKETS FOR THE GREATER GOOD' SAID PETER MERNER AN ANALYST WHO HEADS MERNER & ASSOCIATES IN NEW YORK I THINK WE'RE GOING TO BE WAITING A LONG TIME BEFORE ANY CAPITALIST WILL DO IT MOREOVER DOUBTS ABOUND ABOUT WHETHER RUSSIA'S GOVERNMENT CAN FORCE PRODUCTION CUTS ONTO UNWILLING SMELTERS MANY OF WHICH OPERATE INDEPENDENTLY THOUSANDS OF MILES AWAY FROM THE CAPITAL WITH SPIRALING INFLATION RUSSIAN PRODUCERS ARE BELIEVED TO BE IN DESPERATE NEED OF HARD CURRENCY WHICH CAN ONLY BE EARNED THROUGH EXPORTS THE GLOBAL OVERSUPPLY RESULTED IN PART FROM THE COLLAPSE OF THE FORMER SOVIET UNION WHOSE MILITARYINDUSTRIAL COMPLEX HAD CONSUMED ROUGHLY HALF OF THE NATION'S RAW ALUMINUM ON TOP OF THAT SEVERAL LONGPLANNED SMELTING PROJECTS IN THE WEST CAME ON STREAM WHILE RUSSIA MADE ITS UNEXPECTED ENTRY ONTO THE WORLD MARKET AS A RESULT THE PRICE OF ALUMINUM FELL LAST FALL TO A RECORD LOW WHEN ADJUSTED FOR INFLATION TRIGGERING LOSSES FOR MOST OF THE WORLD'S ALUMINUM PRODUCERS PRICES HAVE RISEN SOMEWHAT SINCE THEN THOMAS M VAN LEEUWEN AN ANALYST WITH CS FIRST BOSTON IN NEW YORK SAID THE RUSSIAN GOVERNMENT HAS SEVERAL WAYS TO FORCE PRODUCTION CUTS INCLUDING HALTING THE IMPORTATION OF ALUMINA THE VITAL RAW MATERIAL IN ALUMINUM PRODUCTION IF PRODUCERS FOLLOW THROUGH WITH THE CUTS ANALYSTS EXPECT A RELATIVELY FAST RECOVERY IF THE PRODUCTION CUTBACKS TOTAL 15 MILLION METRIC TONS OR MORE IT IS MORE THAN ENOUGH TO SOLVE THE PROBLEM SAID STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT IT WOULD BE NECESSARY TO BEGIN RESTARTING IDLED CAPACITY WITHIN 12 TO 16 MONTHS MR SPECTOR SAID HE BELIEVES WESTERN PRODUCERS WILL MAKE THE EXPECTED CUTS THEY NOW HAVE THE EXCUSE TO DO WHAT THEY SHOULD HAVE DONE IN THE FIRST PLACE HE SAID ADDED MR VAN LEEUWEN IT DOESN'T TAKE A ROCKET SCIENTIST TO SEE THAT EVERYBODY NEEDS TO STEP UP TO THE PLATE THE ALUMINUM ASSOCIATION WHICH REPRESENTS US ALUMINUM COMPANIES DECLINED COMMENT SAYING IT WAS WAITING ON A STATEMENT BY THE US GOVERNMENT ABOUT THE MEMORANDUM UNDER THE MEMORANDUM RUSSIA WOULD IMMEDIATELY CURB ITS ANNUAL OUTPUT BY 300000 TONS ITS PRODUCTION REACHED ABOUT 27 MILLION TONS LAST YEAR ANOTHER 200000 TONS WOULD BE CUT IF WESTERN PRODUCERS MADE SIMILAR REDUCTIONS SAID AN OFFICIAL CLOSE TO THE TALKS THE TOTAL WOULD REACH 15 MILLION TO TWO MILLION METRIC TONS THE PACT ALSO CALLS FOR US PRODUCERS TO REFRAIN FROM FILING TRADE CASES AGAINST RUSSIAN PRODUCERS AS THEY HAVE THREATENED TO DO THE EUROPEAN UNION MEANWHILE WOULDN'T RENEW A QUOTA SET TO EXPIRE IN FEBRUARY AMOUNTING TO 180000 TONS A YEAR ON ALUMINUM IMPORTS FROM THE COMMONWEALTH OF INDEPENDENT STATES BUT A GROUP OF SMALLER US PRODUCERS MIGHT STILL FILE AN ANTIDUMPING COMPLAINT WHICH THEY HAVE ALREADY PREPARED SAID ONE PERSON FAMILIAR WITH THE SITUATION THEY DON'T FEEL THEY'RE PRECLUDED FROM IT BY THE MEMORANDUM THE PERSON SAID THE SMALLER PRODUCERS WILL WAIT UNTIL AFTER THE GOVERNMENTS INVOLVED IN THE PACT MEET IN CANADA FEB 28 TO ASSESS PROGRESS IN THE VOLUNTARY CUTBACKS BEFORE DECIDING WHETHER TO FILE THEIR COMPLAINT 9401310174 940131 TECHNOLOGY & MEDICINE JAPAN SUGGESTS IT MAY WANT TO JOIN US CONSORTIUM OF CHIP COMPANIES BY WALL STREET JOURNAL REPORTERS KYLE POPE IN DALLAS ASRA Q NOMANI IN WASHINGTON AND DAVID P HAMILTON IN TOKYO IN ANOTHER SIGN OF JAPAN'S CONTINUING ELECTRONICS SLUMP TOP JAPANESE TRADE NEGOTIATORS HAVE BROACHED THE IDEA OF JOINING SEMATECH THE US TECHNOLOGY CONSORTIUM FORMED IN THE 1980S TO COUNTER JAPANESE DOMINANCE IN COMPUTER CHIPS JAPANESE PARTICIPATION WOULD MARK A RADICAL DEPARTURE FOR THE ONCE STRIDENTLY ALLAMERICAN ORGANIZATION WHICH RECEIVES HALF ITS 200 MILLION ANNUAL BUDGET FROM THE FEDERAL GOVERNMENT AND HAS BEEN CITED BY THE CLINTON ADMINISTRATION AS A MODEL OF GOVERNMENTINDUSTRY COOPERATION THE OVERTURE FROM JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY CAME DURING BILATERAL TRADE TALKS IN TOKYO THIS MONTH IN WHICH NEGOTIATORS ARE TRYING TO SETTLE DIFFERENCES OVER US ACCESS TO JAPAN'S HUGE SEMICONDUCTOR MARKET THOUGH A MITI SPOKESMAN SAID SEMATECH MEMBERSHIP WAS MERELY AN IDEA AND NOT THE SUBJECT OF A FORMAL PETITION JAPANESE NEGOTIATORS SUGGESTED THAT ALLOWING JAPANESE COMPANIES TO JOIN SEMATECH MIGHT HELP TO FURTHER OPEN JAPAN'S CHIP MARKET TO US COMPANIES BY GIVING US CHIP MAKERS A BETTER IDEA OF WHAT JAPANESE CUSTOMERS WANT SO FAR US NEGOTIATORS HAVEN'T POUNCED ON THE IDEA PUSHING INSTEAD FOR STRAIGHT MARKETOPENING COMPROMISES BY THE JAPANESE THE IDEA WAS RAISED SAID A CLINTON ADMINISTRATION OFFICIAL WE HAVEN'T DONE ANYTHING WITH IT FORMED SEVEN YEARS AGO DURING JAPAN'S ECONOMIC HEYDAY THE CONSORTIUM REPRESENTED A LASTDITCH EFFORT TO RESCUE THE COMPANIES THAT MAKE CHIPMANUFACTURING EQUIPMENT FROM A BRUTAL PUMMELING BY JAPANESE CONCERNS FOR YEARS SEMATECH OFFICIALS SPOKE OF THE JAPANESE COMPETITION IN AGGRESSIVE EVEN BELLIGERENT TONES AT TIMES REFUSING EVEN TO LET JAPANESE TELEVISION REPORTERS INTO SEMATECH'S AUSTIN TEXAS HEADQUARTERS THAT RHETORIC THOUGH HAS SOFTENED RECENTLY IN PART BECAUSE THE US CHIP INDUSTRY IS WINNING THE LARGEST US SUPPLIERS OF CHIPMAKING EQUIPMENT ARE CONTINUING TO GAIN MARKET SHARE AND US CHIP MAKERS LED BY GIANT INTEL CORP HAVE COME TO DOMINATE THE WORLD MARKET AS JAPAN'S CORPORATE TITANS HAVE STUMBLED STILL EVEN THE NOTION OF JAPANESE COMPANIES HAVING ACCESS TO TECHNOLOGY DEVELOPED IN PART WITH US TAXPAYER FUNDS COULD PROVE TROUBLESOME FOR SEMATECH AND ITS BACKERS IN THE ADMINISTRATION INDEED SOME ANALYSTS SAY SUCH A MOVE COULD JEOPARDIZE SEMATECH'S FEDERAL FUNDING NOT TO MENTION RILE MANY OF ITS MEMBER COMPANIES THAT NOW HAVE THEIR JAPANESE COMPETITION ON THE RUN AT INTEL FOR INSTANCE A SPOKESMAN SAID HE WAS DUBIOUS ABOUT THE IDEA MY GUT WOULD TELL ME THAT FULL MEMBERSHIP WOULD BE SOMETHING WE WOULD STUDY CLOSELY BUT PROBABLY NOT IN A POSITIVE LIGHT HE SAID G DAN HUTCHESON PRESIDENT OF VLSI RESEARCH INC A SAN JOSE CALIF TECHNOLOGY RESEARCH CONCERN SAID FULL JAPANESE MEMBERSHIP IN SEMATECH WOULD BE BLATANTLY VIOLATING A LOT OF THE PRINCIPLES ON WHICH SEMATECH WAS FOUNDED I THINK THERE WOULD BE A LOT OF PROBLEMS CONSORTIUM OFFICIALS IN PUBLIC COMMENTS ARE COY ABOUT THEIR ROLE IN THE NEGOTIATIONS MILLER BONNER A SEMATECH SPOKESMAN SAID IT WOULD BE UP TO THE CONSORTIUM'S BOARD AND THE US GOVERNMENT TO DECIDE WHETHER JAPANESE COMPANIES ARE ALLOWED IN IN PRIVATE THOUGH SEMATECH OFFICIALS HAVE SOUGHT TO ADVANCE THE IDEA IN A SPEECH LAST MONTH IN TOKYO TO A JAPANESE SEMICONDUCTOR INDUSTRY GROUP SEMATECH PRESIDENT WILLIAM J SPENCER BROUGHT UP THE PROSPECT OF JAPANESE COLLABORATION WITH THE CONSORTIUM THOUGH IN A LIMITED FASHION MR SPENCER WHO IS ON THE CONSORTIUM'S BOARD SAID HE WOULD BE OPEN TO JAPANESE PARTICIPATION IN SEMATECH'S ENVIRONMENTAL AND SILICON DEVELOPMENT PROGRAMS IF JAPAN'S CANON INC LIVES UP TO ITS SIDE OF THE DEAL IN A TECHNOLOGYSWAPPING PACT WITH SILICON VALLEY GROUP INC A US CHIPEQUIPMENT SUPPLIER CAN WE RECONCILE INTERNATIONAL COLLABORATION IN THIS AREA WITH SEMATECH'S REQUIREMENT TO SERVE NATIONAL INTERESTS WE THINK IT MIGHT BE POSSIBLE MR SPENCER TOLD THE GROUP 9401310173 940131 LETTERS TO THE EDITOR NEW YORK IS WAITING BEYOND THE HOTEL DOOR AS SOMEONE NOT FORTUNATE ENOUGH TO LIVE AND WORK IN NEW YORK CITY BUT FORTUNATE ENOUGH TO BE ABLE TO PARTAKE OF MUCH OF WHAT IT HAS TO OFFER I WAS AMAZED TO READ SUSAN HAUSER'S LEISURE & ARTS ARTICLE BORED ON FIFTH AWAY FROM HOME TOGETHER DEC 28 ABOUT SOMEONE VISITING NEW YORK AND FINDING NOTHING FOR HER AND HER CHILDREN TO DO INSTEAD OF STAYING COOPED UP IN THE PLAZA HOTEL ALL SHE HAD TO DO WAS WALK ACROSS ONE STREET TO FAO SCHWARTZ OR ACROSS ANOTHER TO CENTRAL PARK OR OUT THE DOOR AND AROUND THE CORNER TO RUMPLEMAYER'S MUCH MORE FUN AND LESS EXPENSIVE THAN ROOM SERVICE OR OUT THE DOOR AND DOWN THE STREET TO THE TREE AT ROCKEFELLER CENTER NOT TO MENTION THE CHRISTMAS SHOW THE MUSEUMS THE DISPLAY OF TOY SOLDIERS AND SUBMARINES AT THE FORBES GALLERY ETC ETC WHAT A SHAME SHE SPENT ALL THE MONEY SHE DUTIFULLY ACCOUNTS FOR IN HER ARTICLE AND RECEIVED SUCH A POOR RETURN SHE MUST COME BACK AND DO HERSELF AND HER CHILDREN A FAVOR AND VENTURE OUT INTO THE MOST WONDERFUL CITY IN THE WORLD TOGETHER THEIR FANTASIES WILL BE FULFILLED AND THEY WILL FIND REALITY IN NEW YORK EXCEEDS EXPECTATIONS MS HAUSER'S STORY ON HER FAMILY'S STAY AT THE PLAZA BRINGS TO MIND OUR OWN LONG WEEKEND IN NEW YORK THIS TIME LAST YEAR WHILE NOT THE PLAZA THE MIDTOWN MARRIOTT PROVED AN EXCELLENT BASE FOR THREE DAYS OF TYPICAL NEW YORK CITY TOURISM JOGGING IN CENTRAL PARK BROADWAY THEATER FAO SCHWARTZ THE METROPOLITAN MUSEUM BLOOMINGDALES ETC WHEN DAN THEN 11 NOW 12 RECENTLY REVIEWED HOME ALONE 2 HE BEGGED US TO TAKE HIM BACK TO NEW YORK THOUGH I DON'T BELIEVE HIS IMAGE OF THE CITY'S WONDER RELATES TO MS HAUSER'S CONCEPT OF HANGING OUT IN THE CONFINES OF A HOTEL 9401310172 940131 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9401310171 940131 LEISURE & ARTS THE GALLERY A PASSION FOR IMPRESSIONISM BY MARGARET SCOTT HIS WIFE THOUGHT HE WAS CRAZY RISING BEFORE DAWN ON HIS DAY OFF JUST TO SEE SOME FRENCH PAINTINGS KAZUHIRO ARAI THOUGH WAS A HAPPY MAN HE WAS FIRST IN LINE FOR THE OPENING OF AN EXHIBIT OF MASTERPIECES ASSEMBLED BY AN IRASCIBLE ICONOCLASTIC COLLECTOR FROM PHILADELPHIA NAMED ALBERT C BARNES MY WIFE DOESN'T UNDERSTAND THESE PEOPLE UNDERSTAND SAID MR ARAI A 43YEAROLD SELFDESCRIBED SALARYMAN AS HE POINTED AT THE 500ODD PEOPLE SNAKING AROUND TOKYO'S NATIONAL MUSEUM OF WESTERN ART THEY WERE WAITING FOR THE DOORS TO OPEN ON THE ONLY SHOWING IN ASIA OF GREAT FRENCH PAINTINGS FROM THE BARNES FOUNDATION WHERE ELSE BUT TOKYO BARNES FOUNDATION PRESIDENT RICHARD H GLANTON SAID A FEW DAYS EARLIER AS HE ARRIVED FOR THE SWIRL OF FESTIVITIES INAUGURATING THE EXHIBITION OF IMPRESSIONIST POSTIMPRESSIONIST AND MODERN FRENCH ART WHICH RUNS THROUGH APRIL 3 WHERE ELSE BUT TOKYO INDEED WOULD THE LARGEST NEWSPAPER THE YOMIURI SHIMBUN WITH A CIRCULATION OF 14 MILLION CONTRIBUTE 45 MILLION TO THE FOUNDATION'S GALLERYRENOVATION PLANS IN EXCHANGE FOR HOSTING SUCH A SHOW IT TOOK A PROTRACTED COURT BATTLE TO GET THIS FAR FOR BARNES A CHEMIST WHO MADE MILLIONS BOTTLING AN EYE MEDICINE DEVELOPED ALONG WITH HIS PASSION FOR COLLECTING AN ORNERY DISDAIN FOR THE ESTABLISHED ART WORLD BEFORE HE DIED IN 1951 HE STIPULATED THAT HIS MASTERWORKS WOULD NEVER LEAVE THE EDUCATIONAL FOUNDATION HE SET UP NEAR PHILADELPHIA BUT THE FOUNDATION NEARLY BROKE AND SADDLED WITH A BUILDING BADLY IN NEED OF REFURBISHING APPEALED TO A PENNSYLVANIA COURT TO ALLOW THIS ONETIMEONLY WORLD TOUR TOKYO IS THE THIRD AND MOST PROFITABLE OF THE APPROVED STOPS ALONG WITH THE NATIONAL GALLERY OF ART IN WASHINGTON AND THE MUSEE D'ORSAY IN PARIS IN MANY WAYS TOKYO MAY WIND UP BEING THE MOST INTERESTING CAPTURING A CURIOUS AND DEEP INFATUATION IN JAPAN WITH THE PAINTINGS OF RENOIR CEZANNE AND MATISSE NOT SURPRISINGLY THE ARRIVAL OF THE 80 BARNES PAINTINGS HAS BEEN DRENCHED IN A MARKETING CAMPAIGN DESIGNED TO TRANSFORM BARNES'S MOST PRIVATE COLLECTION INTO A MUSTSEE BLOCKBUSTER SHOW THERE ARE POSTERS IN SUBWAY TRAINS TELEVISION COMMERCIALS AND THE INEVITABLE COFFEE MUGS TSHIRTS SCARVES AND CALENDARS YET THE SELLING OF THE BARNES SHOW HAS NOT BEEN DIFFICULT NEVER MIND THAT MOST JAPANESE HAVE NEVER HEARD OF THE LATE COLLECTOR JUST ABOUT ANYONE WILL TELL YOU THAT RENOIR IS THE MOST POPULAR FOREIGN ARTIST IN JAPAN AND IMPRESSIONISM THE FAVORITE STYLE WE WOULD DO ANYTHING TO SEE RENOIR SAID NUBUKO IMAMURA WHO ALONG WITH HER SISTER WAS ONE OF THE 8000 WHO ON OPENING DAY JAN 22 STREAMED THROUGH THE MUSEUM'S FOUR GALLERIES DEVOTED TO THE LUSH VIBRANT CANVASES FROM THE BARNES THE TWO SISTERS HAD TAKEN A DAY OFF WORK BOARDED A BULLET TRAIN IN THEIR HOMETOWN OF HIROSHIMA AND TRAVELED FOR FIVE HOURS JUST TO SEE THE SHOW'S 16 RENOIRS I'VE NEVER SEEN SO MANY BEAUTIFUL THINGS IN ONE ROOM ADDED HER SISTER KYOKO WHY DOES RENOIR HOLD SUCH APPEAL IN JAPAN HE'S SO WARM AND SOFT ONE SISTER SAID THERE IS NO JAPANESE PAINTER WHO CAN PAINT WOMEN SO SOFTLY SO BEAUTIFULLY SAID THE OTHER JAPAN'S LOVE AFFAIR WITH IMPRESSIONISM BUT TOTAL IGNORANCE OF BARNES IS ONE OF THE MOST FASCINATING ASPECTS OF THE WHOLE SHOW SAYS SHUICHI KATO THE DOYEN OF JAPANESE ART HISTORIANS TO BE SURE THE PAINTINGS BARNES COLLECTED RESONATE DIFFERENTLY IN TOKYO THAN IN PARIS WHERE THE EXHIBITION WAS IN ESSENCE ON HOME TURF AND DREW 15 MILLION VISITORS THE LARGEST AUDIENCE IN FRENCH HISTORY BUT THE BARNES SHOW RAISES DIFFERENT QUESTIONS IN JAPAN LIKE WHY IS IMPRESSIONISM AND THEN POSTIMPRESSIONISM SO POPULAR MR KATO ASKS THE INFATUATION HAS SEVERAL ROOTS AFTER THE MEIJI RESTORATION WHEN JAPANESE BEGAN VENTURING INTO EUROPE IN THE 1870S AND '80S IMPRESSIONISM WAS JUST BEGINNING TO APPEAR IN PARIS AS A CHALLENGE TO THE REALISTIC STYLE OF THE ART ACADEMIES IMPRESSIONISM MARKS THE FIRST TIME JAPANESE PAINTERS TRIED ON A EUROPEAN STYLE AND EUROPEAN PAINTERS WERE INFLUENCED BY JAPANESE STYLE SAYS MR KATO JAPANESE PAINTERS FOLLOWING THE PATTERN OF THE ENGINEERS AND BUREAUCRATS WHO BROUGHT BACK WHAT THEY LEARNED IN EUROPE INTRODUCED THEIR COLLEAGUES TO MONET DEGAS AND RENOIR THEY ALSO BEGAN PAINTING IMPRESSIONIST VERSIONS OF GINZA STREET SCENES AND PORTRAITS OF KIMONOCLAD WOMEN BY THE EARLY DECADES OF THE CENTURY EUROPEAN IMPRESSIONISTS HAD CAPTURED POPULAR TASTE AS WELL AND THE INFATUATION HAS NEVER COOLED A LARGE PART OF IT MR KATO SAYS WAS THE SUBJECT MATTER PRETTY LANDSCAPES AND DOMESTIC SCENES MADE MORE SENSE TO THE JAPANESE THAN DID WESTERN HISTORICAL OR RELIGIOUS PAINTINGS THE CACHET OF IMPRESSIONISM AND POSTIMPRESSIONISM TOOK ON A DECIDEDLY COMMERCIAL CAST DURING THE HEADY FLUSH DAYS OF THE LATE 1980S THE APPETITE OF JAPANESE INVESTORS FOR RENOIRS MONETS CEZANNES AND VAN GOGHS SENT THE WORLD'S ART PRICES SOARING RECORDS WERE REGULARLY BROKEN IN TOKYO LONDON AND NEW YORK AT ITS HEIGHT WHEN LITERALLY HUNDREDS OF RENOIRS WERE SNAPPED UP BY JAPANESE INVESTORS SOME 45 OF ALL IMPRESSIONIST PAINTINGS UP FOR SALE WENT TO JAPANESE BUYERS THE BOOM TIMES ARE OVER AND THE ART MARKET MAY HAVE COOLED HERE BUT THE CURRENT EXHIBITION'S ORGANIZERS ARE HOPING THAT PEOPLE WILL STILL JUMP AT THIS UNIQUE CHANCE TO SEE SUCH KEY WORKS AS THE MODELS BY SEURAT AND THE JOY OF LIFE BY MATISSE YOMIURI SHIMBUN OFFICIALS TALK OF ATTRACTING 600000 VISITORS WILLING TO PAY 1500 YEN 1250 TO SEE THE SHOW ON THE SHOW'S OPENING DAY KENSUKE TANABE AN ACCOMPLISHED CONTEMPORARY PAINTER FROM YOKOHAMA FOUND HIMSELF SURROUNDED BY WORKS OF MATISSE HE HAD LONG AGO COPIED FROM BOOKS THE IRONY CONTINUES HE NOTED THANKS TO THE BARNES COLLECTION WE CAN SEE ALL THESE GREAT PAINTINGS THAT JAPANESE INVESTORS COULDN'T GET THEIR HANDS ON HE SAID MS SCOTT IS A WRITER IN TOKYO 9401310170 940131 AND FEDERAL MANDATES CRUSH STATES BY GEORGE V VOINOVICH UNFUNDED FEDERAL MANDATES ARE PLACING SEVERE PRESSURE ON TAXPAYERS NATIONWIDE CRIPPLING STATE BUDGETS FROM MAINE TO CALIFORNIA THESE MANDATES ARE FEDERAL PROGRAMS ENACTED BY CONGRESS BUT WITH A CATCH THEY MUST BE FINANCED WITH STATE AND LOCAL RESOURCES THROUGH THIS SLEIGHT OF HAND CONGRESS COMPELS STATES AND LOCALITIES TO FUND PROGRAMS WASHINGTON CANNOT BECAUSE OF THE PERSISTENT BUDGET DEFICIT THIS SUMMER OHIO RELEASED A STUDY ANALYZING THE EFFECTS OF UNFUNDED MANDATES WE DETERMINED THAT FEDERAL MANDATES WILL COST OHIO 356 MILLION IN 1994 AND MORE THAN 174 BILLION IN 199295 FEDERAL MANDATES INTERFERE WITH A FUNDAMENTAL TASK OF GOVERNMENTSETTING PRIORITIES PERHAPS THE MOST GLARING EXAMPLE IS THE FORCED TRADEOFF BETWEEN MEDICAID AND EDUCATION IN THE PAST FIVE YEARS EDUCATION DECLINED AS A SHARE OF STATE SPENDING AT A TIME WHEN EDUCATIONAL IMPROVEMENT SHOULD BE ONE OF OUR HIGHEST PRIORITIES MANY STATES CANNOT SPEND A GREATER SHARE OF TAX DOLLARS ON EDUCATION BECAUSE NEW MEDICAID MANDATES CONSUME MORE AND MORE STATE RESOURCES INCREASING TO 263 MILLION FOR OHIO IN 1995 FROM 185 MILLION IN 1992 WHILE MOST MANDATES MAY REFLECT WELLINTENTIONED POLICY GOALS MANY IMPOSE EXCESSIVE COSTS WITHOUT ANY DISCERNIBLE BENEFIT FOR EXAMPLE RECENT FEDERAL HIGHWAY LAW REQUIRES STATES TO USE A SCRAPTIRE ADDITIVE IN HIGHWAY PAVEMENT BY 1997 THIS MANDATE WILL COST OHIO MORE THAT 50 MILLION A YEAR BECAUSE EARLY TESTS SHOW THAT RUBBERIZED ASPHALT IS TWO TO THREE TIMES MORE EXPENSIVE THAN CONVENTIONAL PAVEMENT THE NATIONAL COST IS ROUGHLY 1 BILLION TO PUT THIS 50 MILLION FIGURE IN PERSPECTIVE FOR THE SAME COST OHIO COULD REPAVE 667 MILES OF RURAL HIGHWAYS OR REHABILITATE 137 BRIDGES INCREDIBLY THIS MANDATE WAS ENACTED WITHOUT ANY ASSESSMENT OF ITS IMPACT AND EXPERTS HAVE REAL QUESTIONS ABOUT THE DURABILITY AND ENVIRONMENTAL EFFECTS OF RUBBERIZED ASPHALT UNFUNDED MANDATES ALSO PREEMPT IMPORTANT STATE INITIATIVES IN OHIO FOR EXAMPLE WE DEVELOPED A COMPREHENSIVE SOLID WASTE MANAGEMENT PLAN YET WE ARE REQUIRED TO CHANGE MOST OF OUR LANDFILL RULES TO CONFORM TO FEDERAL STANDARDS THAT IN SOME RESPECTS ARE WEAKER THAN OUR OWN OHIO REGULATORS ARE ALSO INCREASINGLY BEING SWAMPED BY FEDERAL PAPERWORK REQUIREMENTS INHIBITING CLEANUP OF LANDFILLS THAT POSE ENVIRONMENTAL RISKS CITIES AND LOCALITIES IN PARTICULAR ARE HEAVILY BURDENED BY ENVIRONMENTAL MANDATES LAST YEAR A COLUMBUS OHIO ANALYSIS FOUND THAT ENVIRONMENTAL MANDATES WILL COST NINE OHIO CITIES 28 BILLION OVER 10 YEARS THE SAFE DRINKING WATER ACT RESPONSIBLE FOR MANY OF THESE COSTS REQUIRES THE ENVIRONMENTAL PROTECTION AGENCY TO IDENTIFY 25 NEW SUBSTANCES EVERY THREE YEARS THAT LOCAL SYSTEMS MUST TEST FOR IN THEIR WATER SUPPLY BECAUSE EPA ARBITRARILY MUST IDENTIFY A SET NUMBER OF SUBSTANCES WITHOUT ANY ASSESSMENT OF LOCAL CONDITIONS OR HEALTH RISKS CITIES NATIONWIDE MUST BEAR THE COSTS OF TESTING THEIR DRINKING WATER FOR PESTICIDES USED ONLY IN HAWAII TO PROTECT PINEAPPLE CROPS GOVERNORS MAYORS COUNTY OFFICIALS AND STATE LEGISLATORS ARE WORKING TOGETHER TO FIGHT MANDATES AND TO POOL THEIR CLOUT IN WASHINGTON BUT CONGRESS CONTINUES TO PASS AND THE PRESIDENT CONTINUES TO SIGN LEGISLATION IMPOSING UNFUNDED MANDATES THE PAST SESSION OF CONGRESS ENACTED NO LESS THAN 13 BILLS IMPOSING NEW COSTS ON STATES INCLUDING SEVERAL THE PRESIDENT CLAIMED AS MAJOR ACCOMPLISHMENTS DURING HIS STATE OF THE UNION ADDRESS CONGRESS AND THE PRESIDENT MUST END THIS IRRESPONSIBLE PRACTICE THE NATION CAN NO LONGER AFFORD THE LOCAL TAX BURDEN AND SERVICE REDUCTIONS NECESSARY TO FUND PROGRAMS DICTATED BY WASHINGTON MR VOINOVICH A REPUBLICAN IS GOVERNOR OF OHIO 9401310169 940131 MACHINETOOL ORDERS ROSE 37 IN LATEST MONTH BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS JUMPED 37 TO 3191 MILLION IN DECEMBER FROM NOVEMBER'S 2323 MILLION AS THE INDUSTRY'S RECOVERY BROADENED BEYOND ORDERS FROM AUTOMOTIVE MAKERS DECEMBER'S HEALTHY ORDER INCREASE CAPPED A STRONG YEAR FOR THE INDUSTRY ORDERS CLIMBED 32 LAST YEAR TO 328 BILLION FROM 248 BILLION IN 1992 ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY TRADE GROUP DOMESTIC ORDERS LED THE WAY SOARING NEARLY 40 TO 299 BILLION FROM 214 BILLION IN DECEMBER DOMESTIC ORDERS CLIMBED 30 TO 2825 MILLION FROM 2181 MILLION IN NOVEMBER AND 64 FROM 1719 MILLION IN DECEMBER 1992 THE SURGE IN ORDERS FOR THE YEAR WAS LARGELY FUELED BY AUTO MAKERS WHICH WERE BUYING MACHINE TOOLS IN THEIR BIDS TO BOOST PRODUCTIVITY AND TURN OUT NEW PRODUCTS FASTER BUT AS 1993 PROGRESSED ORDERS CLIMBED FROM OTHER SECTORS RANGING FROM APPLIANCE MAKERS TO SMALL JOB SHOPS WE SAW A GOOD STEPUP IN DEMAND AND WE DON'T THINK IT'S OVER YET SAID ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC MR LUSTGARTEN PROJECTS AN 8 TO 12 INCREASE IN ORDERS THIS YEAR MANUFACTURERS WILL CONTINUE TO BUY NEW MACHINE TOOLS WHICH CUT AND FORM METAL PARTS FOR OTHER MACHINES AS PART OF AN EMPHASIS ON PRODUCTIVITY IMPROVING THE PROCESS SAID MR LUSTGARTEN HE ALSO SEES A POTENTIAL PICKUP IN ORDERS FOR EXPORT WHICH HE SAID STABILIZED LATE LAST YEAR IN DECEMBER ORDERS FOR EXPORT SHOT UP 157 TO 366 MILLION FROM 143 MILLION AND ROSE 7 FROM 343 MILLION IN DECEMBER 1992 BUT FOR THE YEAR THEY FELL 15 TO 2909 MILLION FROM 1992'S 3417 MILLION AN ECONOMIC RECOVERY OVERSEAS COULD ALSO SPUR HIGHER DOMESTIC MACHINETOOL ORDERS AS US MANUFACTURERS GEAR UP TO MEET DEMAND FOR EXPORTS SAID WILLIAM G COPELAND OF COPELAND ECONOMICS IN STAMFORD CONN STILL DOMESTIC AUTORELATED ORDERS SHOULD CONTINUE AS A MAIN PROPELLANT FOR MACHINETOOL ORDER GROWTH IN 1994 SAID MR COPELAND WHO LAST YEAR PREDICTED THE 32 RISE IN ORDERS AND NOW PROJECTS A 12 TO 15 INCREASE THIS YEAR AS MUCH MONEY AS DETROIT HAS SPENT IN THE LAST 12 MONTHS I THINK THERE'S GOING TO BE CONSIDERABLY MORE HE SAID GENERAL MOTORS CORP CHRYSLER CORP AND DAIMLERBENZ AG WHICH IS BUILDING A PLANT IN ALABAMA SHOULD LEAD THE WAY IN ORDERING MACHINE TOOLS GM IS STILL PLAYING COST AND PRODUCTDESIGN CATCHUP HE SAID MACHINETOOL ORDERS ARE CONSIDERED ECONOMIC HARBINGERS BECAUSE THE PRODUCTS ARE SHIPPED NINE TO 18 MONTHS AFTER THEY ARE ORDERED 9401310168 940131 INPUT IS LIMITED ON REPARATIONS BY PRUDENTIAL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS WON'T HAVE ANY SAY IN SETTING THE RESIDUAL VALUE OF THEIR PRUDENTIAL SECURITIES INC LIMITED PARTNERSHIPS WHEN TRYING TO TAP INTO A REPARATIONS FUND SET UP BY THE BROKERAGE FIRM THAT'S BAD NEWS FOR AS MANY AS 325000 INVESTORS SEEKING REDRESS FROM PRUDENTIAL THROUGH THE FUND SET UP AS PART OF AN OCTOBER SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS PRUDENTIAL HAS BEEN ACCUSED OF MISLEADING INVESTORS ON THE RISKS AND RETURNS OF 815 BILLION OF PARTNERSHIPS IN THE 1980S RESIDUAL VALUE PLAYS A MAJOR ROLE IN DETERMINING THE VALUE OF PARTNERSHIPS AND WHAT DAMAGES INVESTORS OUGHT TO RECEIVE INVESTORS HAD EXPECTED TO BE ABLE TO PRESENT EVIDENCE ON DAMAGES THROUGH RESIDUALS IN THE SECSANCTIONED REPARATIONS PROCESS THAT PARTICIPATION WAS IMPORTANT TO THEM BECAUSE RESIDUALS OFTEN AREN'T EASY TO CALCULATE UNLIKE STOCKS OR BONDS MANY PARTNERSHIPS ARE ILLIQUID AND THUS CAN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AND CONVERTED TO CASH INSTEAD THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AND AN INDEPENDENT CLAIMS ADMINISTRATOR CURRENTLY ARE NEGOTIATING HOW TO SET A FRAMEWORK FOR DETERMINING RESIDUAL VALUES THE TALKS COULD LEAD TO AN AGREEMENT BY THIS WEEK OR NEXT UNTIL THEN MOST CLAIMS WON'T HAVE A CHANCE OF GETTING SETTLED THE GAP IN SETTING RESIDUALS IS HUGE PRUDENTIAL SAYS THE RESIDUAL VALUE OF ITS PARTNERSHIPS TOTALS MORE THAN 15 BILLION IT ARRIVED AT THAT FIGURE BY USING SUCH MEASURES AS COMPARABLE SALES REPLACEMENT COST AND DISCOUNTED CASH FLOW BASED ON PROJECTIONS BUT THE PARTNERSHIPS' TRUE VALUE OR THE PRICE INVESTORS COULD FETCH FOR THEM IN THE MARKET IS BARELY HALF OF WHAT PRUDENTIAL CLAIMS SOME PARTNERSHIP EXPERTS SAY INDEED PARTNERSHIPS' RESIDUAL VALUES HAVE BEEN A MAJOR STICKING POINT IN PRIVATE ARBITRATION AND COURT CASES MY SPINE IS SHIVERING AS I THINK ABOUT IT SAYS WILLIAM JORDAN A FLORIDA STATE UNIVERSITY ACCOUNTING PROFESSOR WHO HAS TESTIFIED AS AN EXPERT WITNESS IN MANY PARTNERSHIP CASES MY FEAR IS PRUDENTIAL WILL BE ALLOWED TO PRICE THEM ACCORDING TO ASSET VALUE AS GOING CONCERNS BUT THEY'RE NOT WORTH WHAT THEIR ASSETS ARE AND NOBODY'S IN THERE TELLING THE OTHER PEOPLE'S STORY FOR INVESTORS THE CHASM OVER RESIDUALS REFLECTS THE POTENTIAL PITFALLS IN THE REPARATIONS PROCESS IT ALSO UNDERSCORES THE IMPORTANCE OF NOT RUSHING INTO A SETTLEMENT BEFORE ASSESSING HOW THE SETTLEMENTS SHAKE OUT FROM THE 330 MILLION RESTITUTION FUND INVESTORS HAVE A YEAR TO FILE CLAIMS THOUGH ABOUT 18000 INVESTORS ALREADY HAVE FILED THEM AND PRUDENTIAL IS REQUIRED TO KEEP A SETTLEMENT DATABASE RESIDUALS MOST OFTEN AFFECT REALESTATE AND AIRPLANELEASING PARTNERSHIPS BUT THE STAKES FOR MOST PRUDENTIAL PARTNERSHIP INVESTORS ARE HIGH CONSIDER OF THEIR 815 BILLION OUTLAY PARTNERSHIP INVESTORS HAVE RECEIVED JUST 3 BILLION IN DISTRIBUTIONS THE BULK OF WHATEVER REMAINING VALUE IS LEFT IS RESIDUALS PRUDENTIAL'S RESIDUAL TAB WILL GO A LONG WAY TOWARD DETERMINING HOW MUCH IT ULTIMATELY WILL PAY IN THE RESTITUTION FUND THE 330 MILLION IS MERELY A DOWNPAYMENT THE SEC SAID THE RESTITUTION FUND IS OPENENDED SETTING RESIDUAL VALUES REALLY DOES IMPACT WHAT WE'LL BE PAYING OUT SAYS JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT UNDER THE SETTLEMENT ACCORD INVESTORS WHO BOUGHT ANY OF 708 PRUDENTIAL PARTNERSHIPS BETWEEN 1980 AND 1990 HAVE RECEIVED A CLAIMS FORM TO TRY TO RECOVER THEIR MONEY FROM THE FIRM PRUDENTIAL WILL OFFER A SETTLEMENT OR REJECT THE CLAIM IF INVESTORS ARE DISSATISFIED THEY CAN SUBMIT THE CLAIM TO AN ARBITRATOR SELECTED BY THE CLAIMS ADMINISTRATOR WHO THEN WILL MAKE A RULING ANY INVESTOR WHO SUBMITS A CLAIM CAN RECOVER COMPENSATORY DAMAGES THAT COVER LOSSES BUT NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES INVESTORS ALSO WILL BE ELIGIBLE TO RECOVER INTEREST CALCULATED AT THE ANNUALIZED TREASURYBILL RATE DURING THE TIME OF THE INVESTMENT RESIDUALS ALSO AFFECT HOW MUCH INVESTORS WILL RECEIVE IN INTEREST THE DISCUSSIONS ON RESIDUALS HAVE INTENSIFIED IN RECENT WEEKS IRVING M POLLACK THE CLAIMS ADMINISTRATOR HAS CAUTIONED PRUDENTIAL ON ITS CASHFLOW PROJECTIONS AMONG OTHER THINGS I'M NOT INTERESTED IN WHAT THIS MAY BE WORTH IN THE YEAR 2015 YOU'VE GOT TO HAVE A REALISTIC VALUATION SAYS MR POLLACK WHO IS A FORMER SEC COMMISSIONER AND ENFORCEMENT CHIEF WE'RE GOING TO BE FAIRLY HARDNOSED ON IT MR POLLACK SAYS HIS ASSOCIATES HAVE DONE A LOT OF SPADE WORK IN GATHERING DATA TO SET RESIDUAL VALUES BUT HE CONCEDES THAT DETERMINING RESIDUALS IS EXTREMELY DIFFICULT AND POINTS UP THE COMPLEXITY OF HIS TASK I'VE GOT TO BE FAIR TO CLAIMANTS BUT I CAN'T BE UNFAIR TO PRUDENTIAL MR POLLACK SAYS PRUDENTIAL FOR ITS PART SAYS IT RECENTLY RETAINED ANOTHER APPRAISAL COMPANY TO GAUGE CASH FLOW THOUGH SOME RESIDUALS ARE BASED ON ESTIMATES AND OTHERS ON MARKET VALUES THEY ARE BOTH FAIR ACCORDING TO PRUDENTIAL NOBODY WOULD TELL YOU THAT THESE VALUES ARE ALWAYS FIRM SAYS PRUDENTIAL'S MR MURRAY THERE'S AN ART FORM OUT THERE FOR THE APPRAISAL PROCESSAN ART FORM THAT HAS BEEN AROUND A LONG TIME AND IS AS GOOD AS YOU'RE GOING TO GET ONE THING IS CLEAR INVESTORS WON'T HAVE ANY INPUT IN SETTING RESIDUALS BARRING AN EXTRAORDINARY EVENT SUCH AS THEY FOUND GOLD UNDER SOME BUILDING SAYS MR POLLACK SAYS PRUDENTIAL'S MR MURRAY SOMEBODY HAS TO MAKE A DECISION ON WHAT IT'S WORTH SOME LAWYERS ARE CONSIDERING URGING THEIR CLIENTS TO SELL THE PARTNERSHIPS IN THE SECONDARY MARKET TO DEMONSTRATE HOW LITTLE THE INVESTMENTS ARE WORTH THE IDEA THE LAWYERS SAY IS TO FIX INVESTORS' LOSSES AND NOT MAKE THEM SUBJECT TO ANY SPECULATION OR GUESSWORK MR JORDAN THE ACCOUNTING PROFESSOR EVEN HAS SUGGESTED THAT INVESTORS OUGHT TO BE ABLE TO TENDER THEIR PARTNERSHIPS TO PRUDENTIAL AT THE RESIDUAL VALUE SET BY THE FIRM THIS WOULD PROD PRUDENTIAL TO MORE ACCURATELY REFLECT THE PARTNERSHIPS' VALUE HE SAYS 9401310167 940131 INTERNATIONAL WASHINGTON INSIGHT US PULLOUT FROM SOMALIA COULD GIVE INDICATIONS ON CLINTON FOREIGN POLICY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO MONTHS FROM TODAY ON MARCH 31 THE LAST US TROOPS WILL PULL OUT OF SOMALIA NO ONE KNOWS WHAT WILL HAPPEN ON APRIL 1 US OFFICIALS ARE HOPING THAT THE SOMALI PEOPLE ARE SO WEARY OF FAMINE AND DEATH THAT THEY WILL RESTRAIN THE WARLORDS FROM LAUNCHING ANOTHER ALLOUT CIVIL WAR INSTEAD A US DIPLOMAT PREDICTS THERE WILL BE MIDLEVEL GANG WARFARE IT WON'T BE PEACEFUL BUT IT MIGHT BE REASONABLY STABLE NO ONE IS RULING OUT A RETURN TO TOTAL ANARCHY THOUGH THE US AND SEVERAL EUROPEAN NATIONS THAT ALSO ARE GETTING OUT HAVE MADE CONTINGENCY PLANS TO EVACUATE REMAINING UNITED NATIONS FORCES SHOULD THEY COME UNDER ATTACK FOR NOW AT LEAST SOME 20000 UN TROOPS DRAWN ALMOST TOTALLY FROM THE THIRD WORLD HAVE AGREED TO STAY ON THE CLINTON ADMINISTRATION HAS COME UP WITH AN INTERESTING RATIONALE TO COVER ITS RETREAT ALTHOUGH NO ONE HAS USED THE TERM IT IS A FOREIGNPOLICY VERSION OF EMPOWERMENT WE DID THE BEST WE COULD FOR THE SOMALIS THE ARGUMENT GOES AND NOW IT'S UP TO THEM TO DECIDE WHETHER THEY WANT WAR OR PEACE WHILE INTENDED TO INSULATE PRESIDENT CLINTON FROM FURTHER BLAME THE ARGUMENT MAY CONTAIN THE KERNEL OF A NEW MORE MODEST PEACEKEEPING DOCTRINE FOR BOTH THE US AND THE UN IF SOMALIA STABILIZES THE US MAY BE WILLING TO CONSIDER OTHER LIMITED MISSIONS AND PRESS FORWARD WITH MUCHNEEDED REFORMS OF UN PEACEKEEPING CAPABILITIES BUT IF ALL HELL BREAKS LOOSE THE ADMINISTRATION WITH A HEARTFELT I TOLD YOU SO FROM THE CONGRESS COULD WALK AWAY FROM PEACEKEEPING ALTOGETHER IT'S NOT CLEAR HOWEVER THAT THE SOMALIS HAVE BEEN GIVEN WHAT THEY NEED TO TAKE CONTROL OF THEIR OWN DESTINY AS EVER THE BIGGEST DOUBTS REVOLVE AROUND THE UN FAILURE TO DISARM SOMALI CLANS AND MILITIAS A UN SECURITY COUNCIL RESOLUTION WHICH COULD PASS THIS WEEK WILL CALL FOR VOLUNTARY DISARMAMENT THE UN MEANWHILE WILL PROVIDE AID AND RECONSTRUCTION HELP ONLY TO SOMALI LEADERS WHO ARE WILLING TO KEEP THE PEACE THOSE WHO ATTACK PEACEKEEPERS OR EACH OTHER WILL HAVE TO DO WITHOUT SUCH SUPPORT THE UN AND THE US ALREADY HAVE BUILT A NEW HIGHWAY AROUND MOGADISHU WHERE THE MILITIAS AGAIN CONTROL THE STREETS SO THEY CAN BYPASS THE CAPITAL AND STILL DELIVER AID THE UN COULD END UP ABANDONING MOGADISHU ALTOGETHER WITH THIS APPROACH OFFICIALS ARE HOPING TO BUILD AT LEAST SOME STABILITY REGION BY REGION THE UN WILL CONTINUE TO ENCOURAGE NEGOTIATIONS BETWEEN THE DIFFERENT CLAN LEADERS AND WARLORDS WITH LITTLE EXPECTATION THAT THEY WILL AGREE ON WHO SHOULD CONTROL A NEW CENTRAL GOVERNMENT IT COULD BE YEARS BEFORE SOMALIA HAS A FUNCTIONING GOVERNMENT SAYS ONE US OFFICIAL THERE ARE DOZENS OF REASONS WHY SUCH AN APPROACH COULD FAIL THE BIGGEST PROBLEM REMAINS WARLORD MOHAMED FARAH AIDEED WHOSE LUST FOR POWER IS MATCHED ONLY BY HIS ANIMOSITY TOWARD THE UN MEANWHILE THE RECONSTRUCTION PROGRAM THAT IS SUPPOSED TO ENCOURAGE SOMALIS TO KEEP THE PEACE HAS GOTTEN OFF TO A SLOW START THE US HAS PLEDGED 100 MILLION AND IS HOPING TO RAISE MORE AT A DONORS' CONFERENCE SCHEDULED FOR THIS WEEK IN NAIROBI THE UN ALSO IS HURRYING TO TRAIN AND ARM A NEW NEUTRAL SOMALI POLICE FORCE BUT THE NEW FORCE MAY NOT HAVE THE SKILLS IT NEEDS IN TIME TO STAND UP TO THE WARLORDS AND THEIR TEENAGE THUGS OR EVEN TO HOLD ON TO THEIR NEWLY IMPORTED WEAPONS THE APPROACH DOES HAVE IN ITS FAVOR THE MORAL STRENGTH OF SOMALI CLAN ELDERS AND RELIGIOUS LEADERS WHO DESPERATELY WANT PEACE THE MEMORIES OF 350000 DEAD ALSO ARE A FORCE FOR PEACE NO MATTER HOW SOMALIA TURNS OUT EMPOWERMENT MAY BE A GOOD BASIS FOR THE CLINTON ADMINISTRATION'S LONGPOSTPONED PEACEKEEPING DOCTRINE BUT IT STILL DOESN'T GET THE US OFF THE HOOK FOR EMPOWERMENT TO WORK COUNTRIES MUST BE GIVEN THE MINIMUM CONDITIONS FROM WHICH TO BUILD PEACE EVEN THAT ENTAILS REAL DANGERS AND SACRIFICES IF A PEACE ACCORD IS SIGNED IN BOSNIA FOR INSTANCE THE US WILL HAVE TO DECIDE WHETHER IT'S WORTH TAKING EVEN THE DIMINISHED RISKS OF HELPING TO KEEP A PEACE TO WHICH ALL SIDES HAVE AGREED BUT IF PRESIDENT CLINTON OR CONGRESS DECIDES NOT TO SEND TROOPS NO AMOUNT OF RATIONALIZATION WILL BE ABLE TO COVER THEIR RETREAT 9401310166 940131 TENNECO MAKING FUND PAYMENT HOUSTON TENNECO INC SAID IT WILL MAKE A 199 MILLION MANDATORY ANNUAL PRINCIPAL PAYMENT TO ITS SINKING FUND MARCH 1 THE DIVERSIFIED INDUSTRIAL CORPORATION SAID THE FUNDS WILL BE USED TO REDEEM 195744 SHARES OF ITS 740 CUMULATIVE PREFERRED STOCK HOLDERS OF RECORD JAN 20 WHO WERE SELECTED BY LOT TO PARTICIPATE IN THE REDEMPTION WILL BE PAID 100 A SHARE PLUS 185 IN DIVIDENDS 9401310165 940131 WHO'S NEWS CONTINENTAL AIRLINES HIRES BETHUNE OF BOEING AS PRESIDENT OPERATING CHIEF BY BRIDGET O'BRIAN AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL CONTINENTAL AIRLINES HIRED GORDON M BETHUNE AS ITS NEW PRESIDENT AND CHIEF OPERATING OFFICER SNATCHING THE SENIOR BOEING CO MANAGER WHO OVERSEES DEVELOPMENT OF THE MANUFACTURER'S NEW 737700 SMALL JETLINER THE HOUSTONBASED CARRIER GETS AN INDUSTRY VETERAN FOCUSED INTENTLY ON AIRCRAFT EFFICIENCY AT A TIME WHEN IT IS ITSELF PARING UNPROFITABLE OPERATIONS AND BEEFING UP ITS LOWFARE SHORTHAUL SERVICE DUBBED CALITE INDEED CONTINENTAL WILL ANNOUNCE TODAY THAT IT'S VASTLY INCREASING THE NUMBER OF DAILY CALITE FLIGHTS THE MOVE ALSO REUNITES THE 52YEAROLD MR BETHUNE WITH HIS FORMER BOSS FROM NOWDEFUNCT BRANIFF AIRLINES CONTINENTAL CHIEF EXECUTIVE OFFICER ROBERT R FERGUSON III FOR BOEING MR BETHUNE'S SUDDEN DEPARTURE IS A BLESSING AND A CURSE IT PUTS A BOEING BACKER AT THE HELM OF AN IMPORTANT CUSTOMER THE FIRST OF 92 BOEING JETS CONTINENTAL HAS ORDERED WILL BE DELIVERED FEB 8 BUT IT YANKS THE PERSONABLE MR BETHUNE FROM HIS CRUCIAL ROLE AT THE DIVISION THAT MAKES 737 AND 757 AIRLINERS HE HAS BEEN OVERSEEING THE COMPANY'S 1 BILLION INVESTMENT IN THE NEW GENERATION 737 AN UPGRADED MODEL THAT BOEING NEEDS TO DEVELOP AND BUILD INEXPENSIVELY TO COMPETE WITH AIRBUS INDUSTRIE'S A320 THE 737700'S LAUNCH CUSTOMER IS DALLASBASED SOUTHWEST AIRLINES WHICH CALITE HAS EMULATED AT CONTINENTAL MR FERGUSON WILL RELINQUISH THE PRESIDENT'S TITLE AND BECOME VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER A TITLE HE HELD PRIOR TO APRIL 1993 WHEN CONTINENTAL EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION ACTUALLY MR BETHUNE WILL SUCCEED LEWIS JORDAN CONTINENTAL'S PRESIDENT AND CHIEF OPERATING OFFICER UNTIL LAST MARCH WHEN HE WAS ASKED TO RESIGN ONE REASON FOR MR FERGUSON'S DISSATISFACTION WITH MR JORDAN WAS A COMPANY STUDY THAT CONCLUDED THE AIRLINE PAID ABOUT 200 MILLION MORE A YEAR ON MAINTENANCE THAN ITS FARLARGER COMPETITORS MR BETHUNE IS ATTUNED TO THE INDUSTRY'S SHIFT TOWARD LOWCOST HIGHLY EFFICIENT SERVICE AND HAS BEEN KNOWN TO LAUNCH INTO LENGTHY SPIRITED EXHORTATIONS ON THE SUBJECT WITH LITTLE PROMPTING IN A RECENT INTERVIEW HE PROFESSED AN ADMIRATION FOR SOUTHWEST CHAIRMAN HERBERT KELLEHER AND NOTED THAT YOU TEND TO EMULATE PEOPLE YOU ADMIRE UNTIL JOINING BOEING IN 1988 MR BETHUNE SPENT MOST OF HIS CAREER IN AIRLINE JOBS BECOMING A SENIOR VICE PRESIDENT AT PIEDMONT AIRLINES IT WAS DURING STINTS AS ENGINEERING AND MAINTENANCE CHIEF OF WESTERN AIRLINES AND BRANIFF THAT HE EARNED THE NICKNAME OILCAN AND WORKED FOR MR FERGUSON A FORMER BRANIFF TREASURER A CERTIFIED COMMERCIALJET PILOT AND LICENSED AIRFRAME AND ENGINE MECHANIC MR BETHUNE SAID HE FOUND MR FERGUSON'S OFFER IRRESISTIBLE THERE ARE NOT THAT MANY BIG AIRLINES HE SAID NOTING THAT HE AGREED TO TAKE THE JOB RECENTLY AFTER DECLINING THE OFFER LATE LAST YEAR WITH MR BETHUNE'S DEPARTURE WHICH CAUGHT MANY BOEING MANAGERS BY SURPRISE THE AIRCRAFT MAKER NAMED AS A SUCCESSOR WILLIAM E SELBY 60 GENERAL MANAGER OF AIRCRAFTPARTS FABRICATION AND A LEADER IN COMPANYWIDE INITIATIVES TO FERRET OUT COST SAVINGS 9401310164 940131 USINOR SEEKS RULES AMID INDUSTRY CHAOS EASTERN EUROPEAN RIVALS ADD TO FRENCH GIANT'S WOES BY MARTIN DUBOIS STAFF REPORTER OF THE WALL STREET JOURNAL FRANCIS MER THE CHAIRMAN OF USINOR SACILOR IS IN THE EYE OF A STORM AS EUROPE'S LONGPROTECTED STEELMAKERS CONFRONT LOSSES RECESSION AND SUBSIDIZED RIVALS STEEL PRODUCTS ARE STARTING TO POUR IN FROM EASTERN EUROPE AND THE FORMER SOVIET UNION WITH THE RISE OF ECONOMIC LIBERALISM AND FREE TRADE BRUTAL MARKET FORCES ARE RESHAPING THE RULES USINOR YESTERDAY REPORTED AN ESTIMATED 1993 LOSS OF 58 BILLION FRENCH FRANCS 9788 MILLION WHICH WAS FAR WORSE THAN EXPECTED AND MORE THAN DOUBLE THE YEAREARLIER LOSS OF 24 BILLION FRANCS THIS IS THE FRENCH STATEOWNED GROUP'S THIRDCONSECUTIVE YEARLY LOSS AND THE COMPANY IS FORECASTING A LOSS OF TWO BILLION FRANCS FOR THE CURRENT YEARIF MARKET CONDITIONS DON'T DETERIORATE FURTHER CONSOLIDATED REVENUE AT EUROPE'S BIGGEST STEELMAKER FELL 13 IN 1993 TO A PRELIMINARY 754 BILLION FRANCS FROM 87 BILLION FRANCS NOT SURPRISINGLY MR MER A 54YEAROLD ALUMNUS OF FRANCE'S ELITE ECOLE POLYTECHNIQUE FEELS IRRITATED THE DOGEATDOG STEEL BUSINESS TODAY HAS LITTLE IN COMMON WITH THE OLD FRENCH IDEAL OF A RATIONAL INDUSTRIAL ENVIRONMENT SHAPED BY STATE POLICY MR MER HOWEVER WHOSE COMPANY IS SLATED FOR PRIVATIZATION SAYS HE DOESN'T FEAR FAIR COMPETITION IT'S MISGUIDED GOVERNMENT INTERVENTION AND THE LACK OF INTERVENTION WHERE AND WHEN IT'S REALLY NEEDED THAT ANGERS HIM MEANWHILE USINOR HASN'T RECENTLY RECEIVED AN INFUSION OF GOVERNMENT MONEY UNLIKE SOME OF ITS MAJOR COMPETITORS SUCH AS ITALY'S STATEOWNED ILVA SPA OR SPAIN'S CIA SIDERURGICA INTEGRAL AND THE EUROPEAN UNION IS TIPPING THE BALANCE BY ALLOWING SUBSIDIES FOR SOME OF ITS PRODUCERS AND REFRAINING FROM LIMITING IMPORTS OF STEEL PRODUCTS FROM EASTERN EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES IN THE NAME OF FREE TRADE WE DON'T HAVE ANY PROBLEM IN ACCEPTING THE PRINCIPLE OF FREE COMPETITION ON THE ONLY CONDITION THAT SUCH COMPETITION IS BETWEEN PEOPLE PLAYING MORE OR LESS BY THE SAME RULES SAID MR MER IN A RECENT INTERVIEW AT THE COMPANY'S HEADQUARTERS JUST LAST MONTH THE EU CLEARED 679 BILLION EUROPEAN CURRENCY UNITS 756 BILLION IN SUBSIDIES TO A GROUP OF AILING STATEOWNED STEELMAKERS IN ITALY SPAIN GERMANY AND PORTUGAL INCLUDING ILVA AND CSI BY SHIELDING THESE PRODUCERS FROM THE FREEMARKET SANCTION OF BANKRUPTCY THE MOVE INCREASES COMPETITIVE PRESSURE ON BELEAGUERED NONSUBSIDIZED PRODUCERS SUCH AS USINOR OR THYSSEN AG WHICH LAST WEEK REPORTED A 994 MILLION MARK 5698 MILLION LOSS FOR FISCAL 1993 IN ADDITION THE EU IS DOING LITTLE TO FORCE SUBSIDIZED PRODUCERS TO CLOSE DOWN EXCESS CAPACITY BUT USINOR'S BIG 1993 LOSS OF ABOUT 2900 FRANCS A TON OF STEEL PRODUCED COULD ALSO FORCE THE GOVERNMENT OF FRENCH PRIME MINISTER EDOUARD BALLADUR TO MAKE SOME TOUGH DECISIONS ANALYSTS SAY EITHER IT'LL HAVE TO LET THE STEEL COMPANY ACCELERATE CLOSURES AND LAY OFF MORE WORKERS AN UNPOPULAR MOVE IN A COUNTRY WHERE UNEMPLOYMENT IS A POLITICAL HOT POTATO OR PARIS WILL HAVE TO GIVE USINOR SOME SORT OF BAILOUT WHICH WOULD LAND FRANCE IN TROUBLE WITH THE EUROPEAN COMMISSION'S COMPETITION AUTHORITIES I DON'T BELIEVE THEY CAN STICK IT OUT SAYS PETER FISH MANAGING DIRECTOR OF MEPS EUROPE LTD A CONSULTING FIRM IN THE UNITED KINGDOM MR FISH SAYS USINOR WILL BE FORCED TO START DIVESTING MORE OF ITS NONCORE ACTIVITIES FOR EXAMPLE IN THE US WHERE MR MER HAD EMBARKED ON AN AGGRESSIVE ACQUISITION SPREE USINOR'S LOSSES ALSO COMPLICATE THE GOVERNMENT'S GOAL OF PRIVATIZING THE COMPANY PRIVATIZATION HAD BEEN EXPECTED AS EARLY AS NEXT YEAR WHEN STEEL DEMAND AND PRICES ARE EXPECTED TO RECOVER BUT WITH CONTINUING HEAVY LOSSES AND A HEAVY DEBT LOAD THE COMPANY IS ILL PREPARED FOR A PUBLIC OFFER STILL MR MER HAS WON HIGH MARKS IN THE INDUSTRY WITH HIS RELENTLESS EFFORTS TO RESTRUCTURE AND MODERNIZE THE STEEL GIANT WHILE INVESTING HEAVILY IN RESEARCH AND DEVELOPMENT THIS YEAR THE COMPANY PLANS TO REDUCE ITS OPERATING COSTS BY A WHOPPING 15 BILLION FRANCS IF IT SURVIVES ITS CURRENT WOES USINOR COULD WELL EVOLVE INTO ONE OF EUROPE'S MOST COMPETITIVE STEELMAKERS ANALYSTS SAY COMPETITIVE PRESSURES ARE BUILDING UP FLEDGLING EXPORTERS IN EASTERN EUROPE AND IN THE FORMER SOVIET UNION ARE ADDING PRESSURES WITH THEIR LOW PRODUCTION COSTS AND WEAK CURRENCIES STEEL EXPORTS FROM EASTERN EUROPE AND THE CIS TO THE 12NATION EU TOTALED ABOUT 35 MILLION TONS LAST YEAR THE BRUSSELSBASED INDUSTRY FEDERATION EUROFER ESTIMATES THAT'S DOWN FROM 43 MILLION TONS IN 1992 A DECLINE ATTRIBUTED TO WEAK DEMAND IN WESTERN EUROPE HOWEVER IN THE FEW MORE ROBUST SEGMENTS OF THE STEEL MARKET EASTERN EUROPEAN AND CIS PRODUCERS GAINED MARKET SHARE LAST YEAR EUROFER SAYS INDICATING THAT EXPORTS ARE POISED TO BOOM ONCE WESTERN EUROPEAN DEMAND RECOVERS THAT'S ALL THE MORE WORRISOME MR MER SAYS BECAUSE THERE ARE NO WORLDWIDE RULES GOVERNING THE STEEL TRADE STEEL PRODUCTS WERE REMOVED FROM LAST YEAR'S URUGUAY ROUND GLOBAL TRADE ACCORD UNDER PRESSURE FROM THE US THE MOVE WHICH WAS OPPOSED BY THE EU MEANS THAT STEEL IS UNLIKELY TO BE COVERED BY NORMAL TRADING RULES ANYTIME SOON MR MER FRETS THAT WHILE THE US CONTINUES TO PROTECT ITS MARKET WITH ANTIDUMPING LEVIES THE EU WILL BE FORCED TO ACCEPT INCREASING AMOUNTS OF EASTERN STEEL FOR THE SAKE OF ECONOMIC INTEGRATION FOR THE EUROPEAN COMMISSION LETTING IN IMPORTS FROM EASTERN EUROPE AND THE FORMER SOVIET UNION IS A POLITICAL IMPERATIVE THOUGH HE DOESN'T CALL FOR PROTECTIONISM HE ADDS THAT EUROPEAN PRODUCERS DESERVE A TRANSITION PERIOD TO ADAPT WHILE THE FORMER SOVIET BLOC IS INCORPORATED INTO THE WORLDTRADING SYSTEM TODAY'S CHAOTIC BUSINESS ENVIRONMENT SERIOUSLY COMPLICATES MR MER'S MISSION WHICH SINCE HE TOOK THE HELM AT USINOR IN 1986 HAS BEEN TO ABSORB AND RESTRUCTURE VIRTUALLY ALL OF THE FRENCH STEEL INDUSTRY UNDER THE USINOR UMBRELLA THE COMPANY WAS ESTABLISHED IN 1986 AS PART OF A GOVERNMENT BAILOUT OF THE COUNTRY'S BANKRUPT STEEL INDUSTRY IT HASN'T BEEN AN EASY JOB LAYING OFF THOUSANDS OF WORKERS AND CLOSING DOZENS OF PLANTS HAS COST USINOR DEARLY UNDER FRANCE'S GENEROUS JOBPROTECTION LAWS JUST DURING 1993 USINOR CUT ITS EMPLOYMENT BY 21000 TO 68000 LAST YEAR USINOR A KEY SUPPLIER OF STEEL SHEET TO CAR MAKERS WAS HIT BY THE PLUNGE IN EUROPEAN AUTO PRODUCTION CURRENCY DEVALUATIONS IN ITALY AND SPAIN WHICH ARE MAJOR EXPORT MARKETS FOR THE FRENCH GROUP ALSO HURT RESULTS THE COMPANY MEANWHILE CONTINUES TO BE PLAGUED BY HEAVY RESTRUCTURING AND DEBTSERVICING COSTS USINOR CUT BACK ITS DEBT TO AROUND 25 BILLION FRANCS LAST YEAR FROM 295 BILLION FRANCS IN 1992 BUT THE DEBTTOASSET RATIO NEVERTHELESS REMAINED AT A HEFTY 12 LAST YEAR COMPARED WITH 124 IN 1992 AND 11 IN 1991 THE COMPANY RAISED 205 MILLION LAST YEAR BY FLOATING PART OF ITS US SPECIALTYSTEEL SUBSIDIARY ON THE US STOCK MARKET MUCH OF THE PROCEEDS WERE USED TO REPAY DEBT COMPANY OFFICIALS SAY BUT WHETHER THERE'S SCOPE FOR MORE WINDFALLS IS UNCLEAR AND SOME IN THE INDUSTRY BELIEVE USINOR MAY BE FORCED TO TURN TO THE FRENCH STATE FOR MONEY IN 1991 USINOR GOT A 25 BILLION FRANC CASH INJECTION FROM THE FRENCH STATEOWNED BANK CREDIT LYONNAIS IN RETURN FOR A 9 STAKE THE BANK ALSO GOT A FURTHER 11 STAKE IN THE STEELMAKER FROM THE FRENCH GOVERNMENT MR MER HOWEVER DENIES HE HAS ANY PLANS TO ASK THE GOVERNMENT FOR MORE MONEY 9401310163 940131 TECHNOLOGY SOLITEC INC DISMISSES EMPLOYEES SANTA CLARA CALIF SOLITEC INC BLAMING A SHORTAGE OF CASH SAID IT DISMISSED DOZENS OF EMPLOYEES AT ITS HEAD OFFICE AND ITS COMPUMART SUBSIDIARY IN PORTLAND ORE THE COMPANY WHICH MAKES CHIP PRODUCTION EQUIPMENT AND DISTRIBUTES ELECTRONICS GOODS ALSO SAID THAT JOE MCDOWELL ITS CHIEF EXECUTIVE OFFICER CUT HIS SALARY TO THE FEDERAL MINIMUM HOURLY WAGE AND THAT PARTHA SARATHY THE CHIEF FINANCIAL OFFICER HAD RESIGNED TO EASE ITS CASH CRUNCH SOLITEC SAID THAT IT MIGHT SEEK NEW INVESTORS OR SELL ONE OR MORE OF ITS OPERATIONS THE COMPANY SAID IT WAS DISCUSSING SUCH OPTIONS WITH SEVERAL GROUPS 9401310162 940131 INTERNATIONAL SOUTH KOREAN INDUSTRIAL OUTPUT SEOUL SOUTH KOREA SOUTH KOREA'S INDUSTRIAL OUTPUT SHOWED AN 117 INCREASE IN DECEMBER FROM A YEAR AGO PROVIDING MORE EVIDENCE THAT THE NATION'S ECONOMY IS PULLING OUT OF ITS PROTRACTED STAGNANCY THE NATIONAL STATISTICAL OFFICE SAID THE OFFICE SAID THAT THE DECEMBER GAINS FOLLOWED A YEARTOYEAR RISE OF 105 IN NOVEMBER 9401310161 940131 CHRYSLER PICKS MINIVAN PLANT HIGHLAND PARK MICH CHRYSLER CORP SAID THE STEEL PARTS AND ASSEMBLIES FOR ITS NEW MINIVAN CODENAMED NS WILL BE BUILT AT THE STAMPING PLANT IN TWINSBURG OHIO CHRYSLER SAID IT WILL INVEST 80 MILLION TO EQUIP THE PLANT FOR THE ADDITIONAL STAMPING BUSINESS CHRYSLER'S NEW VERSIONS OF THE DODGE CARAVAN PLYMOUTH VOYAGER AND CHRYSLER TOWN & COUNTRY GO INTO PRODUCTION IN FALL 1995 THE STAMPING PLANT ALREADY BUILDS PARTS FOR A VARIETY OF PASSENGER CARS AND LIGHT TRUCKS 9401310160 940131 SANYO'S PRETAX PROFIT SURGED IN FISCAL YEAR BUT NET LOSS GREW SPECIAL TO THE WALL STREET JOURNAL TOKYO SANYO ELECTRIC CO A JAPANESE ELECTRONICS CONCERN REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED NOV 30 SURGED FROM THE PREVIOUS YEAR BUT THE GAIN WAS LARGELY DUE TO SALES OF SECURITIES HOLDINGS SANYO'S CONSOLIDATED OPERATING PROFIT ON ITS MAIN BUSINESS OPERATIONS FELL 13 TO 1004 BILLION YEN 924 MILLION AND AFTER TAXES SANYO REMAINED IN THE RED PRETAX PROFIT JUMPED TO 323 BILLION YEN FROM 562 MILLION YEN BUT THE NET LOSS GREW TO 156 BILLION YEN FROM 129 BILLION YEN THE PREVIOUS YEAR SALES EDGED DOWN 07 TO 1527 TRILLION YEN SANYO PREDICTED THAT IN THE CURRENT FISCAL YEAR IT WILL RETURN TO PROFITABILITY ON A CONSOLIDATED NET BASIS WITH RISING SALES AND PRETAX PROFITS THE COMPANY CITED HEALTHY ECONOMIC CONDITIONS IN ASIA AND THE US AS WELL AS ITS EFFORTS TO RESTRUCTURE AND PURSUE NEW BUSINESS OPPORTUNITIES DOMESTIC SALES DROPPED 27 TO 88235 BILLION YEN OR 58 OF TOTAL GROUP SALES WHILE OVERSEAS SALES ROSE 23 TO 64444 BILLION YEN OR 42 OF OVERALL SALES 9401310159 940131 JAPANESE PRODUCTION DROPS TOKYO PRODUCTION AT JAPAN'S FACTORIES AND MINES AFTER ADJUSTMENT FOR SEASONAL FACTORS FELL 17 IN DECEMBER FROM NOVEMBER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THE LATEST 17 DECLINE WAS MUCH SMALLER THAN THE 35 PLUNGE THAT MITI HAD PREDICTED FOR DECEMBER 9401310158 940131 CENVILL DEVELOPMENT CORP PEMBROKE PINES FLA CENVILL DEVELOPMENT CORP SAID THE US BANKRUPTCY COURT IN MIAMI CONFIRMED A LIQUIDATION PLAN FOR THE REALESTATE DEVELOPER IN 1992 CENVILL FILED FOR PROTECTION FROM ITS CREDITORS UNDER CHAPTER 11 BANKRUPTCY PROCEEDINGS THAT SAME YEAR THE BANKRUPTCY COURT APPROVED THE SALE OF SEVERAL OF CENVILL'S ASSETS TO HILCOAST DEVELOPMENT CORP 9401310157 940131 STEELWORKERS CLEAR USX PACT PITTSBURGH THE UNITED STEELWORKERS OF AMERICA SAID THAT MEMBERS EMPLOYED BY USX CORP APPROVED A LONGTERM CONTRACT BY A VOTE OF 8405 TO 2471 THE CONTRACT IS EFFECTIVE FEB 1 AND EXPIRES JULY 31 1999 IT COVERS 15128 EMPLOYEES AND PUTS A UNION REPRESENTATIVE ON THE USX BOARD ALONG WITH RAISING WAGES AND PENSIONS THE UNION SAID THE CURRENT AGREEMENT EXPIRES TODAY 9401310156 940131 DESIGNS INC TO TAKE A CHARGE CHESTNUT HILL MASS DESIGNS INC SAID IT TOOK A RESTRUCTURING CHARGE OF 9 MILLION IN ITS FOURTH QUARTER ENDED SATURDAY TO CLOSE AS MANY AS 10 OF ITS STORES AND UPDATE OTHERS THE OPERATOR OF SPECIALTY RETAIL STORES SAID THE OUTLETS SLATED TO CLOSE GENERATED ABOUT 3 OF THE COMPANY'S TOTAL SALES VOLUME IN THE YEAR TO DATE AS A RESULT OF EXPENSE SAVINGS ASSOCIATED WITH THE CLOSINGS THE RESTRUCTURING IS EXPECTED TO ADD ABOUT 2 MILLION TO PRETAX EARNINGS IN FISCAL 1995 9401310155 940131 WHO'S NEWS CONTROL DATA SYSTEMS INC CONTROL DATA SYSTEMS INC ARDEN HILLS MINN JOSEPH F KILLORAN VICE PRESIDENT AND CONTROLLER OF THIS COMPUTER CONCERN WAS NAMED CHIEF FINANCIAL OFFICER A NEWLY CREATED POSITION MR KILLORAN IS 53 YEARS OLD 9401310154 940131 AMERICAN ANNUITY EXTENDS DATE CINCINNATI AMERICAN ANNUITY GROUP INC SAID IT EXTENDED TO FEB 8 THE EXPIRATION DATE OF ITS OFFER TO PURCHASE COMMON SHARES FOR 11 EACH FROM HOLDERS WHO OWN 10 OR FEWER SHARES THE PREVIOUS EXPIRATION DATE FOR THE TENDER OFFER WAS JAN 28 THE COMPANY SAID AMERICAN ANNUITY SAID THAT AS OF JAN 27 ABOUT 2900 COMMON SHARES HAD BEEN TENDERED THE COMPANY THROUGH ITS GREAT AMERICAN LIFE INSURANCE UNIT IS ENGAGED IN THE SALE OF TAXDEFERRED ANNUITIES TO TEACHERS AND OTHER EMPLOYEES OF NONPROFIT INSTITUTIONS 9401310153 940131 INTERNATIONAL CONSORCIO G GRUPO DINA DEAL MEXICO CITY MEXICAN TRUCK AND BUS MAKER CONSORCIO G GRUPO DINA SA AND MOTOR COACH INDUSTRIES INTERNATIONAL INC OF PHOENIX SIGNED A PURCHASE AGREEMENT DINA WILL ACQUIRE ALL OF THE SHARES OUTSTANDING OF MOTOR COACH IN EXCHANGE FOR A NEW CLASS OF DINA STOCK DINA WILL EXCHANGE AMERICAN DEPOSITARY SHARES WORTH 1672 EACH IN L SERIES STOCK FOR EACH SHARE OF MOTOR COACH COMMON STOCK AT THE EXCHANGE PRICE DINA IS PAYING A PREMIUM OF NEARLY 30 FOR THE MOTOR COACH STOCK THE DEAL IS VALUED AT 337 MILLION DINA SAID THE MERGER IS EXPECTED TO BE CLOSED IN THE SECOND QUARTER 9401310152 940131 ONE VALLEY BUYS MOUNTAINEER CHARLESTON WVA ONE VALLEY BANCORP OF WEST VIRGINIA INC SAID IT COMPLETED ITS ACQUISITION FRIDAY OF MOUNTAINEER BANKSHARES OF WEST VIRGINIA INC FOR STOCK VALUED AT 119 MILLION UNDER THE TERMS OF THE PACT ONE VALLEY EXCHANGED 15 SHARES OF COMMON STOCK FOR EACH SHARE OF MOUNTAINEER'S COMMON OUTSTANDING IN A TAXFREE EXCHANGE THE MERGER IS ACCOUNTED FOR AS A POOLING OF INTERESTS THE 119 MILLION VALUE IS BASED ON THE CURRENT MARKET PRICE OF ONE VALLEY COMMON STOCK THE COMPANY SAID ONE VALLEY IS A BANK HOLDING COMPANY WITH 28 BILLION IN ASSETS AND MOUNTAINEER HAS TOTAL ASSETS OF 739 MILLION AND 23 FULLSERVICE BANKING OFFICES 9401310151 940131 WHO'S NEWS PANCHO'S MEXICAN BUFFET INC PANCHO'S MEXICAN BUFFET INC FORT WORTH TEXAS GEORGE RIORDAN 60YEAROLD PARTNER IN GEORGE RIORDAN & CO INVESTMENT BANKERS OF LOS ANGELES WAS ELECTED TO THE BOARD OF THIS OPERATOR OF BUFFETSTYLE RESTAURANTS INCREASING THE BOARD'S SIZE TO NINE 9401310150 940131 TOWERS TRUSTEE SUES HOFFENBERG ALLEGING FRAUD BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A COURTAPPOINTED TRUSTEE OVERSEEING THE BANKRUPTCY RESTRUCTURING OF TOWERS FINANCIAL CORP SUED ITS FORMER CHAIRMAN AND OTHERS FOR 12 BILLION CLAIMING THEY DEFRAUDED THE COMPANY OF MORE THAN 400 MILLION IN A SUIT FILED IN US BANKRUPTCY COURT HERE ALAN COHEN THE TRUSTEE CHARGED THAT STEVEN HOFFENBERG SYSTEMATICALLY COVERED UP 400 MILLION IN LOSSES AT THE DEBTCOLLECTION COMPANY BY REPORTING BLATANTLY FALSE FINANCIAL STATEMENTS IN ADDITION THE SUIT ASSERTS THAT MR HOFFENBERG WHO MADE AN UNSUCCESSFUL BID FOR THE NEW YORK POST LAST YEAR AND OTHERS GROSSLY OVERSTATED TOWERS'S ASSETS AND THAT THEY CREATED ACCOUNTING RECORDS TO SUPPORT THE ALLEGED FRAUDULENT FINANCIAL STATEMENTS SO THAT HE COULD BORROW HUNDREDS OF MILLIONS OF DOLLARS FROM CREDITORS AND INVESTORS TO AGGRANDIZE HIMSELF AND SUPPORT HIS EXTRAVAGANT LIFESTYLE THE SUIT IS SEEKING TREBLE DAMAGES UNDER THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE MR HOFFENBERG DECLINED TO COMMENT HIS ATTORNEY MICHAEL ROSOFF WHO ALSO IS NAMED IN THE SUIT SAID HE HADN'T YET SEEN THE SUIT AND COULDN'T COMMENT ON IT IT'S THE FIFTH SEPARATE LAWSUIT THAT ALAN COHEN HAS FILED AGAINST MR HOFFENBERG WHICH DOESN'T STRIKE ME AS BEING A PARTICULARLY EFFICIENT OR APPROPRIATE USE OF TOWERS'S ASSETS MR ROSOFF SAID AS TRUSTEE MR COHEN IS CURRENTLY CONDUCTING AN AUCTION TO SELL TOWERS A BANKRUPTCY JUDGE IS SCHEDULED TO HEAR THE RESULTS OF THE AUCTION WEDNESDAY TOWERS FILED FOR PROTECTION FROM CREDITORS UNDER THE US BANKRUPTCY CODE LAST MARCH MR HOFFENBERG FACES CIVILFRAUD CHARGES FROM THE SECURITIES AND EXCHANGE COMMISSION AND HAS BEEN PENALIZED IN TWO STATES FOR KEEPING DEBTS THAT HIS COMPANIES HAD COLLECTED FOR CLIENTS 9401310149 940131 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 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 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 303 30 TO 59 DAYS 305 60 TO 89 DAYS 310 90 TO 159 DAYS 320 160 TO 249 DAYS 330 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 312 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 269 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 3 ONE MONTH 305 THREE MONTHS 319 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 302 90 DAYS 303 120 DAYS 309 150 DAYS 314 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 591 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 24 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 678 60 DAYS 685 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 677 60 DAYS 687 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401310148 940131 GAYLORD WILL TAKE A CHARGE NASHVILLE TENN GAYLORD ENTERTAINMENT CO SAID IT WILL TAKE A 800000 CHARGE IN THE FIRST QUARTER BECAUSE OF A CONSOLIDATION OF THE MANAGEMENT TEAM IN ITS OPRYLAND HOSPITALITY & ATTRACTIONS GROUP A MANAGEMENT TEAM OF SIX VICE PRESIDENTS HAS BEEN ESTABLISHED TO OVERSEE OPERATIONS OF THE GROUP IN ADDITION 56 POSITIONS WILL BE LOST THE COUNTRYMUSIC AND COMMUNICATIONS COMPANY SAID THE CONSOLIDATION WILL RESULT IN ANNUALIZED SAVINGS OF 4 MILLION THE CHARGE WILL BE FOR EARLY RETIREMENT AND SEVERANCE PAYMENTS 9401310146 940131 CAPITAL HOLDING REDEMPTION LOUISVILLE KY CAPITAL HOLDING CORP SAID IT WILL REDEEM AT FACE VALUE ALL 100 MILLION OF ITS ADJUSTABLERATE CUMULATIVE PREFERRED STOCK SERIES F MARCH 2 THE COMPANY HAS ONE MILLION SERIES F SHARES OUTSTANDING THE REDEMPTION PRICE WILL BE 100 A SHARE PLUS ACCRUED AND UNPAID DIVIDENDS TO THE REDEMPTION DATE THE SERIES F STOCK CARRIES AN ADJUSTABLE QUARTERLY DIVIDEND RATE WITH A MINIMUM ANNUAL RATE OF 675 AND A MAXIMUM ANNUAL RATE OF 14 THE COMPANY SAID CAPITAL HOLDING A MULTILINE INSURANCE HOLDING COMPANY SAID IT PAID QUARTERLY CASH DIVIDENDS AT AN ANNUAL RATE OF 675 9401310145 940131 CORRECTIONS & AMPLIFICATIONS BLACK ENTERPRISE MAGAZINE HAS BEEN RANKING THE NATION'S BLACKOWNED COMPANIES BY SALES SINCE 1973 NOT 1971 AS STATED IN THE JAN 19 BUSINESS & RACE COLUMN ALSO JOHNSON PUBLISHING CO TOPPED THE LIST FROM 1984 TO 1987 NOT 1971 TO 1987 AS STATED IN THE COLUMN THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S 250 MILLION ISSUE OF STEPUP MEDIUMTERM NOTES DUE FEB 10 1999 WAS PRICED AT PAR TO YIELD 45 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE CALLABLE ON FEB 10 1995 AT THAT TIME THE COUPON ON THE NOTES STEPS UP TO 562 IN FRIDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE NOTES WERE NONCALLABLE 9401310144 940131 WHO'S NEWS HAUSER CHEMICAL RESEARCH INC HAUSER CHEMICAL RESEARCH INC BOULDER COLO ROBERT F SAYDAH 65 YEARS OLD WAS ELECTED TO THE BOARD OF THIS CHEMICAL PROCESSOR SUCCEEDING ROGER F REINKING 52 WHO RETIRED MR SAYDAH IS MANAGING PARTNER OF THE SAN FRANCISCO OFFICE OF HEIDRICK & STRUGGLES AN EXECUTIVE SEARCH CONCERN 9401310143 940131 WHO'S NEWS LTV CORP LTV CORP CLEVELAND EDGAR L BALL 67 YEARS OLD WAS NOMINATED AS A DIRECTOR OF THE STEEL AND OILFIELD PRODUCTS AND EQUIPMENT CONCERN MR BALL RETIRING INTERNATIONAL SECRETARYTREASURER OF THE UNITED STEELWORKERS OF AMERICA BECOMES THE 14TH MEMBER OF THE BOARD FORMED IN JUNE 1993 9401310142 940131 QVC BOARD TO MEET ON EVE OF DEADLINE FOR PARAMOUNT BID BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC'S BOARD PLANS TO MEET TODAY TO DECIDE WHAT STEPS TO TAKE IN THE TWODAY HOMESTRETCH OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC BEFORE TOMORROW'S FINAL BIDDING DEADLINE ACCORDING TO PEOPLE IN THE QVC CAMP QVC ALREADY HAS TAKEN THE NECESSARY STEPS TO OBTAIN FINANCING FOR A POSSIBLE HIGHER BID FROM ITS BANKS AND BELLSOUTH CORP THE PEOPLE SAID BUT THEY CAUTIONED THAT A DECISION HASN'T BEEN MADE AND THAT ANY NEW BID WOULD TAKE INTO ACCOUNT THE DETERIORATION THAT HAS OCCURRED IN PARAMOUNT'S BUSINESS DURING THE FOURANDAHALF MONTH CONTEST BETWEEN QVC AND VIACOM INC PEOPLE FOLLOWING THE CONTEST EXPECTED THAT QVC WOULD EITHER MAKE A NEW BID TODAY OR ANNOUNCE THAT IT PLANS TO MAKE A NEW BID TOMORROW IN ORDER TO REDUCE THE CHANCE THAT VIACOM COULD RECEIVE 501 OF PARAMOUNT SHARES UNDER ITS OWN 98 BILLION TENDER OFFER WHICH EXPIRES AT THE END OF TODAY VIACOM COULD WIN THE CONTEST IF IT OBTAINED 501 OF PARAMOUNT STOCK TODAY AND QVC DIDN'T REVISE ITS OWN 102 BILLION OFFER SO QVC IS LIKELY EITHER TO ANNOUNCE A SMALL INCREASE WHICH COULD AUTOMATICALLY EXTEND THE CONTEST OR ANNOUNCE PLANS TO MAKE A NEW BID TOMORROW TRADERS SAID THAT EVEN JUST AN ANNOUNCEMENT BY QVC OF PLANS TO MAKE A NEW BID MIGHT BE SUFFICIENT TO DISSUADE INVESTORS FROM TENDERING THEIR PARAMOUNT SHARES TO VIACOM EVEN THOUGH VIACOM'S BID HAS THE ENDORSEMENT OF THE PARAMOUNT BOARD AND THE BACKING OF MANY TRADERS DISCLOSURE OF THE BOARD MEETING ITSELF COULD BE A DELAYING TACTIC BECAUSE QVC'S DECISION MAKING RESIDES AMONG A SMALL GROUP OF ITS CHAIRMAN BARRY DILLER AND ITS TWO LEAD INVESTORS BELLSOUTH THE REGIONAL BELL TELEPHONE COMPANY AND COMCAST CORP THE CABLETV CONCERN ALTHOUGH QVC'S OFFER HAS A HIGHER CURRENT MARKET VALUE TRADERS PREFER THE VIACOM BID BECAUSE IT INCLUDES A CONTINGENTVALUE SECURITY THAT RISES IN VALUE IF VIACOM'S STOCK DOESN'T APPRECIATE THE REASON TRADERS MIGHTN'T TENDER TO THE VIACOM BID IS THAT THEY WOULDN'T WANT TO CLOSE OUT THE CONTEST WITHOUT FINDING OUT WHETHER VIACOM OR QVC MAY BE SAVING A MUCH HIGHER OFFER FOR THE LAST DAY OF BIDDING BOTH QVC AND VIACOM HAVE AGREED NOT TO MAKE NEW BIDS AFTER TOMORROW UNDER BIDDING RULES SET UP BY PARAMOUNT ONE INVESTMENT BANKER FOR QVC CALLED SOME TRADERS ON FRIDAY ASKING THEIR OPINION ON ONE POSSIBLE COMPONENT OF A NEW QVC BID A CONTINGENTVALUE RIGHT WHOSE VALUE WOULD INCREASE IF QVC'S STOCK WENT DOWN 9401310141 940131 CONTINENTAL BANK'S PLANNED SALE CAPS STORMY HISTORY THAT INCLUDED BAILOUT BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE PLANNED SALE OF CONTINENTAL BANK CORP BRINGS TO AN END ONE OF THE MOST TUMULTUOUS CORPORATE STORIES IN US HISTORY THIS SUMMER WHEN BANKAMERICA CORP IS EXPECTED TO COMPLETE ITS 19 BILLION ACQUISITION OF THE CHICAGO BANK WILL MARK THE 10TH ANNIVERSARY OF THE FEDERAL GOVERNMENT'S 45 BILLION BAILOUT OF CONTINENTAL THE FEDERAL DEPOSIT INSURANCE CORP IS STILL SELLING THE LAST OF THE BAD LOANS IT TOOK OFF CONTINENTAL'S HANDS AND THE AGENCY ESTIMATES ITS TOTAL LOSS ON THE BAILOUT AT 103 BILLION BUT BEYOND THE COST CONTINENTAL'S PLACE IN HISTORY MAY BE AS A WARNING AGAINST TOORAPID GROWTH AND AGAINST PLACING TOO MUCH EMPHASIS ON ONE SECTOR OF THE BANKING BUSINESS IN THIS CASE ENERGY LENDING THE STORY OF CONTINENTAL ALSO SUGGESTS THAT GOVERNMENT BAILOUTS WHILE FINE FOR CALMING THE FINANCIAL MARKETS CAN'T UNDO THE DAMAGE A RECKLESS INSTITUTION INFLICTS ON ITSELF IN THE 10 YEARS SINCE THE BAILOUT CONTINENTAL HAS RETURNED TO HEALTH BUT ONLY BY STEADILY DWINDLING IN SIZE AND IMPORTANCE AMID AN INDUSTRY CONSOLIDATION THAT IS PRODUCING MEGABANKS I DON'T THINK CONTINENTAL HAD MUCH CHANCE OF EVER CATCHING UP JOHN E SWEARINGEN THE FORMER AMOCO CORP CHAIRMAN WHO INITIALLY RAN THE BANK FOR THE FDIC SAID FROM HIS RETIREMENT HOME IN PALM SPRINGS CALIF THIS IS A GOOD SOLUTION CONTINENTAL HAD ALREADY HAD ITS SECOND CHANCE WAY BACK IN 1933 WHEN IT WAS BAILED OUT FOR THE FIRST TIME BY THE DEPRESSIONERA RECONSTRUCTION FINANCE CORP THE BANK PLAYED IT SAFE FOR THE NEXT 40 YEARS BUT WHEN ROGER E ANDERSON TOOK OVER AS CHAIRMAN IN 1973 THAT CHANGED MANAGEMENT CONSULTANTS TOLD HIM TO GIVE JUNIOR OFFICERS MORE LENDING AUTHORITY AND HE DID DUN'S REVIEW A BUSINESS MAGAZINE IN 1978 NAMED CONTINENTAL ONE OF THE FIVE BESTMANAGED US COMPANIES AND MR ANDERSON LET OUT THE THROTTLE THE WORST OF THE LOANS CAME THROUGH A SHOPPINGMALL LENDER PENN SQUARE BANK OF OKLAHOMA CITY AND WHEN IT WAS CLOSED IN 1982 CONTINENTAL'S TAILSPIN HAD BEGUN BUILT ON A FRAGILE BASE OF INSTITUTIONAL DEPOSITS OR HOT MONEY CONFIDENCE COLLAPSED BY MAY 1984 IN A BREATHTAKING 20 BILLION INTERNATIONAL DEPOSIT RUN THAT THREATENED THE ENTIRE BANKING SYSTEM GRIM HUMOR TOOK HOLD AS UNCLE SAM PLEADED FOR A BUYER A MERGER WITH MANUFACTURERS HANOVER COULD CREATE CONMAN BANK A SALE TO NOMURA SECURITIES AND CONTINENTAL WOULD BE NOMURA BANK BANK INSIDERS JOKED THEY WERE IN LINE TO RECEIVE STOCK PUTS INSTEAD OF OPTIONS REGULATORS BROUGHT IN AS SUPPOSED COEQUALS MR SWEARINGEN AND WILLIAM S OGDEN A CAREER BANKER AND THEY BROUGHT BACK THE DEPOSITS KEPT MANY CUSTOMERS AND EMPLOYEES AND BEGAN SELLING SOME OF THE FDIC'S STAKE TO SHAREHOLDERS THEY ALSO FOUGHT MR SWEARINGEN THE SWAGGERING OILMAN HAD NEVER HAD MUCH REGARD FOR BANKERS AND LIKED TO TWEAK THE COMPETITION MR OGDEN STIFF AND CHAINSMOKING LOVED BANKING AND THOUGHT SUCH SNIPING WAS POOR FORM BEFORE THEIR FIRST YEAR WAS FINISHED MR SWEARINGEN HAD DEMANDED THE FDIC'S BACKING AS UNDISPUTED CHIEF EXECUTIVE WHEN MR SWEARINGEN THREATENED TO QUIT WILLIAM ISAAC FDIC CHAIRMAN AT THE TIME NEARLY TOOK HIM UP ON THE OFFER WE JUST MADE A 45 BILLION INVESTMENT IN THIS INSTITUTION AND YOU'RE TELLING ME TO SHOVE IT MR ISAAC PROTESTED ACCORDING TO AN OFFICIAL FAMILIAR WITH THEIR TALKS BUT MR OGDEN WAS DEMOTED AND DENIED THE TOP JOB WHEN MR SWEARINGEN RETIRED IN 1987 THE OILMAN BROUGHT IN THOMAS C THEOBALD FROM CITICORP HE DITCHED ANY NOTION OF CONSUMER BANKING AND MADE CONTINENTAL INTO A 100 COMMERCIAL BANK A POOR MAN'S JP MORGAN BUT WITH A CRUMMY CREDIT RATING AND WEAK DEPOSITGATHERING POWER MR THEOBALD COULD COMPETE WITH THE LIKES OF MORGAN IN OFFERING EXOTIC FINANCIAL INSTRUMENTS AND BIG HUNKS OF CREDIT CONTINENTAL DID WHAT IT COULD FOR ITS EXTREMELY LOYAL CUSTOMER BASE IT HAS SOME SORT OF RELATIONSHIP WITH 75 OF THE FORTUNE 100 COMPANIES AND 40 OF THE FORTUNE 500 MR THEOBALD SAID BUT STEADILY LOST GROUND TO BIGGER BANKS NOW BANKAMERICA HOPES THAT WITH ITS FINANCIAL MUSCLE IT AND CONTINENTAL'S CLIENTS WILL DO A LOT MORE BUSINESS 9401310140 940131 BUSINESS BRIEF SOUTHERN PACIFIC REVISES PLAN TO SELL SHARES AFTER DELAY IN RAILLINE SALE SOUTHERN PACIFIC RAIL CORP RESTRUCTURED ITS 25 MILLION COMMON STOCK OFFERING AFTER THE ANTICIPATED 240 MILLION SALE OF A CALIFORNIA RAIL LINE FAILED TO CLOSE ON TIME THE COMPANY HAD PLANNED TO ISSUE 15 MILLION NEW SHARES PLUS A SECONDARY OFFERING OF ABOUT 10 MILLION SHARES TO BE SOLD BY CERTAIN SOUTHERN PACIFIC SHAREHOLDERS UNDER THE NEW PLAN ALL 25 MILLION SHARES IN THE OFFERING WILL BE NEW SHARES THEY WERE COUNTING ON RECEIVING 240 MILLION FROM THE SALE OF THE ALAMEDA CORRIDOR SAID BURTON STRAUSS JR AN ANALYST AT LEHMAN BROTHERS INC INSTEAD THEY WILL SELL AN ADDITIONAL 10 MILLION SHARES TO RAISE AN ALTERNATIVE SOURCE OF CASH THE COMPANY NEEDS TO GO AHEAD WITH ITS PROGRAMS TO REBUILD THE RAILROAD THE SAN FRANCISCOBASED RAIL HOLDING COMPANY INSISTED IT'S NOT HAVING CASH PROBLEMS BUT THE MARKET SEEMED TO VIEW THE ANNOUNCEMENT NEGATIVELY SOUTHERN PACIFIC SHARES CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY AT 2150 DOWN 625 CENTS SOUTHERN PACIFIC ALSO REPORTED THAT FOURTHQUARTER NET INCOME FELL TO 39 MILLION OR THREE CENTS A SHARE FROM 522 MILLION OR 50 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID THE LATEST RESULTS INCLUDE ADDITIONAL OPERATING EXPENSES FROM THE 1993 MIDWEST FLOODS AND A 105 MILLION PRETAX CHARGE TO COVER THE COSTS OF CENTRALIZING CREW DISPATCHING AND CREW CALLING AND ELIMINATION OF UNNECESSARY FACILITIES THE COMPANY SAID FOURTHQUARTER RAIL TRAFFIC WAS UP 8 WHILE REVENUES ROSE 44 TO 7428 MILLION FROM 7113 MILLION THE COMPANY SAID ITS AVERAGE FREIGHT RATES DECLINED IN THE QUARTER AS IT MOVED MORE LOWERRATED COMMODITIES SUCH AS COAL AND CONTAINERS AND LESS HIGHERRATED SHIPMENTS OF NEW AUTOS AND AUTO PARTS SOUTHERN PACIFIC SAID FOURTHQUARTER NET ALSO WAS AFFECTED BY LOWER REAL ESTATE SALES GAINS FROM SALE OF REAL ESTATE WERE 72 MILLION COMPARED WITH 878 MILLION A YEAR EARLIER IN ANNOUNCING THE AMENDED PUBLIC OFFERING SOUTHERN PACIFIC SAID IT HAD EXPECTED TO SELL ITS 20MILE RAIL LINE BETWEEN LONG BEACH AND DOWNTOWN LOS ANGELES BY JAN 31 THE TRACK WOULD HAVE BECOME THE ALAMEDA CORRIDOR WHICH IS PLANNED TO BE AN EXPEDITED RAIL ROUTE FOR SOUTHERN PACIFIC AND OTHER RAILROADS TO MOVE FREIGHT SHIPMENTS TO AND FROM THE PORTS BUT SOUTHERN PACIFIC SAID IT APPEARS THAT THE PORTS OF LONG BEACH AND LOS ANGELES WON'T COMPLETE THE PURCHASE OF THE LINE BECAUSE UNION PACIFIC CORP HAS REFUSED TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE PORTS COVERING OPERATIONS ON THE PROPOSED RAIL FACILITY ROBERT STARZEL SOUTHERN PACIFIC'S VICE CHAIRMAN SAID THE PRESSURE IS ON THE UNION PACIFIC TO REACH AN AGREEMENT UNION PACIFIC SAID IT CONTINUES TO BARGAIN WITH THE PORTS BUT THAT PROPOSED FEES TO THE RAILROAD FOR USE OF THE LINE ARE EXCESSIVE 9401310139 940131 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK BRIAN DUPERREAULT 46 PRESIDENT OF THIS INSURANCE CONCERN'S OVERSEAS PROPERTYCASUALTY UNIT AMERICAN INTERNATIONAL UNDERWRITERS WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT EVAN G GREENBERG 38 CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY'S AIG COS IN JAPAN AND KOREA WILL RETURN TO THE US AS PRESIDENT AND CHIEF OPERATING OFFICER OF AIU MR GREENBERG REMAINS CHAIRMAN OF AIG COS IN JAPAN AND KOREA RONALD J ANDERSON AIU SENIOR VICE PRESIDENT EXTERNAL AFFAIRS WILL SUCCEED MR GREENBERG AS PRESIDENT AND CHIEF OPERATING OFFICER OF AIG COS IN JAPAN AND KOREA 9401310138 940131 TECHNOLOGY & MEDICINE SENATOR PLANS TO RELEASE REPORT TODAY CRITICIZING PACE OF DRUGPRICE INCREASES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE PHARMACEUTICAL INDUSTRY IS BRACING FOR AN ATTACK ON ITS PRICING POLICIES FROM SEN DAVID PRYOR WHO PLANS TO RELEASE A REPORT TODAY AIMED AT BUTTRESSING HIS CALL FOR STRONGER REGULATION OF THE INDUSTRY UNDER HEALTHCARE REFORM A SPOKESMAN FOR SEN PRYOR AN ARKANSAS DEMOCRAT SAID THE REPORT WOULD BE RELEASED AT A NEWS CONFERENCE AND WILL SHOW THAT PRESCRIPTIONDRUG PRICE INCREASES LAST YEAR WERE HIGHER THAN THE INDUSTRY CLAIMS IT WILL ALSO LIST THE DRUGS AND MANUFACTURERS THAT SEN PRYOR SAYS LAST YEAR HAD THE HIGHEST INFLATION RATES SEN PRYOR SAID ON FRIDAY THAT HE WOULD RELEASE THE REPORT TODAY IN A MOVE TO FORESTALL PRICE CONTROLS UNDER HEALTHCARE REFORM 18 MAJOR DRUG COMPANIES ACCOUNTING FOR MORE THAN TWOTHIRDS OF THE US MARKET PLEDGED TO HOLD PRICE INCREASES ACROSS THEIR COMBINED PRODUCT LINES AT OR BELOW THE CONSUMER PRICE INDEX LAST YEAR THEIR VOLUNTARY RESTRAINTS APPEAR TO HAVE WORKED BECAUSE THE INDUSTRY ESCAPED DIRECT PRICE CONTROLS UNDER PRESIDENT CLINTON'S PROPOSED REFORMS ALTHOUGH THE INDUSTRY ARGUES THAT PARTS OF THE PLAN WOULD INDIRECTLY REGULATE PRICES SEN PRYOR IN A WRITTEN STATEMENT SAID THE REPORT PROVIDES HARD EVIDENCE THAT WE MAY NEED TO CONSIDER MORE MEANINGFUL RESTRAINTS' TO ENSURE THAT DRUGPRICE INCREASES IN THE RETAIL MARKETPLACE ARE LIMITED TO THE RATE OF INFLATION ANTICIPATING THE REPORT THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID FRIDAY THAT THE DRUG COMPANIES KEPT THEIR PROMISES AS LONG AS ENTIRE PRODUCT LINES ARE INCLUDED IN THE CALCULATION ALONG WITH ALL CATEGORIES OF CUSTOMERS THE LABOR DEPARTMENT'S PRODUCER PRICE INDEX FOR PHARMACEUTICALS LAST YEAR INCREASED 31 SLIGHTLY ABOVE THE CONSUMER PRICE INDEX'S 27 INCREASE THE REPORT BY THE SENATE SPECIAL COMMITTEE ON AGING IS BEING KEPT UNDER WRAPS BY SEN PRYOR THE COMMITTEE'S CHAIRMAN BUT A RESEARCHER WHO PROVIDED DATA FOR THE REPORT OFFERED A GLIMPSE OF WHAT IT MIGHT CONTAIN STEPHEN W SCHONDELMEYER A UNIVERSITY OF MINNESOTA PROFESSOR SAID HIS ANALYSIS INCLUDED THE AVERAGE WHOLESALE PRICES OF THE TOP 200 DRUGS IN THE US IN TERMS OF OUTPATIENT PRESCRIPTIONS WHILE DRUGPRICE INFLATION OVERALL HAS SLOWED TO 36 ACCORDING TO HIS CALCULATIONS MORE THAN TWOTHIRDS OF THE DRUGS IN THE 200 ROSE IN PRICE LAST YEAR FASTER THAN THE GENERAL INFLATION RATE ABOUT 20 HAD INCREASES OF MORE THAN DOUBLE THE CONSUMER PRICE INDEX INCREASE THERE ARE CLEARLY SOME COMPANIES WHO HAVE DONE A GOOD JOB OF HOLDING THE INFLATION RATE OF THEIR PRODUCTS CLOSER TO THE OVERALL INFLATION RATE OF THE ECONOMY HE SAID BUT HE ADDED HIS DATA SHOW THAT VOLUNTARY COMPLIANCE MAY WORK FOR SOME COMPANIES FOR SOME PERIOD OF TIME BUT IT DOESN'T WORK OVERALL HIS ANALYSIS LOOKED AT A SEGMENT OF THE MARKET THAT SERVES CASHPAYING RETAIL CUSTOMERS WHO REPRESENT 45 TO 50 OF ALL OUTPATIENT PRESCRIPTIONS DR SCHONDELMEYER SAID THE ANALYSIS DOESN'T REFLECT PRICES PAID BY HOSPITALS OR OTHER INSTITUTIONAL CUSTOMERS SEN PRYOR'S SPOKESMAN ADDED THAT DR SCHONDELMEYER'S DATA WERE AMONG SEVERAL SOURCES FOR THE REPORT A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID THE ONLY FAIR WAY TO ASSESS DRUG COMPANIES' PRICE INCREASES IS IN THE AGGREGATE FOR ALL CUSTOMERS ACROSS ALL PRODUCTS AND WEIGHTED BY SALES DR SCHONDELMEYER CITED A 13 PRICE INCREASE FOR ZOVIRAX A POPULAR ANTIVIRAL DRUG AS ONE OF THE HIGHEST AMONG THE 200 DRUGS HE EXAMINED A SPOKESMAN FOR THE DRUG'S MAKER BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC SAID THAT INCREASE APPLIED TO THE 200 MILLIGRAM CAPSULE BUT THE AVERAGE INCREASE FOR ALL SEVEN FORMULATIONS OF THE DRUG WAS 68 THE AVERAGE WHOLESALE PRICE DOESN'T REFLECT DISCOUNTS GIVEN TO CUSTOMERS WHICH CAN BE SUBSTANTIAL BURROUGHS WELLCOME'S OVERALL PRICE INCREASE FOR ITS PRODUCTS WEIGHTED BY SALES WAS 51 IN THE US LAST YEAR BUT AFTER DISCOUNTS AND REBATES THE NET PRICE INCREASE WAS 35 THE COMPANY SPOKESMAN SAID 9401310137 940131 WHO'S NEWS TOSCO CORP TOSCO CORP STAMFORD CONN JOSEPH B CARR 72 YEARS OLD WAS ELECTED A DIRECTOR OF THIS REFINER AND MARKETER OF PETROLEUM PRODUCTS BRINGING THE BOARD TO EIGHT MEMBERS MR CARR IS CHAIRMAN OF TWO CLOSELY HELD IRISH COMPANIES 9401310136 940131 WHO'S NEWS NATIONAL MEDICAL ENTERPRISES INC NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF RAYMOND L MATHIASEN 50YEAROLD SENIOR VICE PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF FINANCIAL OFFICER AT THIS HEALTHCARE SERVICES CONCERN MR MATHIASEN HAD BEEN ACTING CHIEF FINANCIAL OFFICER SINCE LAST SEPTEMBER WHEN TAYLOR JENSON 54 RESIGNED FROM THAT POST TO BECOME SENIOR FINANCIAL ADVISER TO THE COMPANY 9401310135 940131 MACY WILL LAY OFF 700 AT WEST UNIT TO SLASH EXPENSES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO AS EXPECTED SAID IT WOULD REDUCE STAFF IN ITS SAN FRANCISCOBASED MACY'S WEST UNIT BY 700 POSITIONS OR ABOUT 35 MACY'S WHICH HAS BEEN OPERATING UNDER CHAPTER 11 FEDERAL BANKRUPTCYLAW PROTECTION SINCE 1992 HAS PERIODICALLY LAID OFF SMALL GROUPS OF EMPLOYEES BUT FRIDAY'S ANNOUNCED JOB CUTS WERE THE LARGEST SINGLE REDUCTION SO FAR AND ARE PART OF MACY'S FIVEYEAR PLAN TO LOWER EXPENSES AND RAISE OPERATING PROFIT THE FIRINGS DON'T AFFECT ANY MACY STORE SALESPEOPLE BUT REACH A WIDE RANGE OF STORE STAFFERS FROM STOCK PEOPLE AND GIFT WRAPPERS THROUGH THE EXECUTIVE RANKS ABOUT 50 EMPLOYEES IN THE MACY'S WEST DIVISIONAL OFFICE WILL ALSO BE LAID OFF BEFORE THE CUTBACKS MORE THAN 20000 WERE EMPLOYED IN THE MACY'S WEST DIVISION WHICH INCLUDED 32 MACY'S DEPARTMENT STORES AND 20 BULLOCK'S STORES IN TEXAS CALIFORNIA ARIZONA AND OTHER STATES A MACY'S SPOKESWOMAN FRIDAY SAID THE CHAIN HAS NO CURRENT PLANS FOR SIMILAR REDUCTIONS IN THE MACY'S EAST DIVISION MACY ALSO CONFIRMED IT WILL CLOSE THE BULLOCK'S STORE IN NORTHRIDGE CALIF THAT WAS DAMAGED IN THE LOS ANGELES EARTHQUAKE AND THAT IT PLANS TO REBUILD IT MACY SAID IT HOPES TO BE ABLE TO REHIRE MANY OF THE NORTHRIDGE EMPLOYEES WHEN THE REPLACEMENT STORE IS BUILT BUT MEANWHILE 250 FULL AND PARTTIME EMPLOYEES WILL BE OUT OF WORK MACY'S DECLINED TO ESTIMATE WHEN THE STORE WOULD REOPEN SEPARATELY IN A MATTER THAT COULD HAVE A BEARING ON ITS REMAINING INDEPENDENT MACY FILED A MOTION IN US BANKRUPTCY COURT IN NEW YORK TO PRESERVE THE RIGHT TO SUE FEDERATED DEPARTMENT STORES INC OVER THE CINCINNATIBASED CHAIN'S SALE OF BULLOCK'S AND I MAGNIN STORES TO MACY SHOULD THE COURTS AWARD MACY A REFUND FROM THE 1988 PURCHASE THE RETAILER COULD USE IT TO OFFSET CLAIMS OF FEDERATED WHICH RECENTLY BOUGHT A CHUNK OF MACY'S SECURED DEBT AND WANTS TO USE IT AS LEVERAGE TO MERGE WITH THE CHAIN IN THE MOTION FILED JAN 26 MACY AND COMMITTEES OF ITS UNSECURED CREDITORS CLAIM THAT SINCE IT APPEARS AFTER PRELIMINARY REVIEW THAT MACY'S OVERPAID FEDERATED FOR THE I MAGNIN AND BULLOCK'S DIVISIONS MACY'S DID NOT RECEIVE FAIR CONSIDERATION FROM FEDERATED FOR THE PAYMENT OF THE PURCHASE PRICE IN 1988 MACY PAID 104 BILLION MUCH OF IT BORROWED FOR THE CALIFORNIABASED CHAINS DEBT FROM THE PURCHASE HELPED PUSH MACY INTO BANKRUPTCY PROCEEDINGS BUT MACY'S MOTION CLAIMS THE BULLOCK'S/MAGNIN PURCHASE MAY CONSTITUTE A FRAUDULENT CONVEYANCE FEDERATED'S CLAIMS IN MACY'S BANKRUPTCY INCLUDES A SECURED 4493 MILLION CLAIM RECENTLY BOUGHT FROM PRUDENTIAL INSURANCE CO OF AMERICA AND EARLIER UNSECURED CLAIMS OF 6825 MILLION WITH SUCH A LARGE SECURED CLAIM FEDERATED INTENDS TO PLAY A DECIDING ROLE IN HOW MACY EMERGES FROM CHAPTER 11 SHOULD MACY BE AWARDED A REFUND ON THE PURCHASE ANY CLAIM OF FEDERATED AGAINST MACY MAY BE OFFSET BY ANY DAMAGES RECOVERED BY MACY BUT MACY MAY NOT PURSUE THE MOTION FOR NOW AND IN FACT FILED THE MOTION TO PRESERVE ITS LEGAL RIGHTS WHICH WOULD HAVE EXPIRED LAST WEEK MACY SAID IT HOPED THAT AS A RESULT OF CONTINUING REVIEW OF THE BULLOCK'S/MAGNIN PURCHASE AND APPROVAL OF MACY'S BANKRUPTCYLAW REORGANIZATION PLAN ALL ISSUES WILL BE RESOLVED 9401310134 940131 CANADA'S WEST COAST IS PARALYZED BY STRIKE BY STEVEDORES' UNION VANCOUVER CANADA'S WEST COAST PORTS HAVE BEEN PARALYZED BY A LONGSHOREMEN'S CONTRACT DISPUTE THE WALKOUT WHICH STARTED THURSDAY HAS HALTED MOVEMENT OF GRAIN LUMBER AND OTHER COMMODITIES AND HAS PROMPTED SOME SHIPPERS TO ORDER THEIR CONTAINER CARGO TO BE DIVERTED TO SEATTLE THE INTERNATIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION CALLED THE STRIKE IN SUPPORT OF ITS WAGE DEMANDS WHICH INCLUDE AN INCREASE OF 95 CANADIAN CENTS US72 CENTS AN HOUR IN THE FIRST YEAR OF A THREEYEAR CONTRACT THE CURRENT BASE RATE IS C2141 AN HOUR THE UNION HAS BEEN WITHOUT A CONTRACT SINCE DEC 31 1992 THE UNION OFFERED TO CONTINUE LOADING GRAIN AT WEST COAST PORTS TO AVOID UNDUE HARDSHIP TO FARMERS BUT THE BRITISH COLUMBIA MARITIME EMPLOYERS' ASSOCIATION REJECTED THE OFFER A SPOKESMAN FOR THE ASSOCIATION WHICH REPRESENTS MARITIME INDUSTRIES SAID WE EITHER MOVE ALL CARGO THAT WE HANDLE OR WE DON'T MOVE CARGO WE CAN'T BE SELECTIVE THE CANADIAN GOVERNMENT HASN'T INDICATED HOW IT INTENDS TO RESPOND TO THE WORK STOPPAGE THE MOST RECENT MAJOR WEST COAST PORT SHUTDOWN IN 1986 WAS ENDED BY LEGISLATION THAT ORDERED A RETURN TO WORK AND IMPOSED A PROCEDURE FOR SETTLING THE CONTRACT DISPUTE 9401310133 940131 WHO'S NEWS JOHNSON WORLDWIDE ASSOCIATES INC JOHNSON WORLDWIDE ASSOCIATES INC RACINE WIS JOHN D CRABB 50YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF RECREATIONAL PRODUCTS HE SUCCEEDS TERENCE S MALONE 63 WHO RETIRED AS CHAIRMAN AND CHIEF EXECUTIVE SAMUEL C JOHNSON 65 WHO WAS CHAIRMAN BEFORE THE OCTOBER 1992 ELECTION OF MR MALONE REASSUMES THE POST OF CHAIRMAN THE POST OF CHIEF OPERATING OFFICER HAS BEEN ELIMINATED THE COMPANY ALSO SAID HELEN P JOHNSONLEIPOLD VICE PRESIDENT CONSUMER MARKETING SERVICESWORLDWIDE OF SC JOHNSON WAX WAS ELECTED A DIRECTOR OF THE COMPANY SUCCEEDING H FISK JOHNSON WHO DIDN'T STAND FOR REELECTION WITH THE NEW DIRECTOR AND MR MALONE'S RETIREMENT THERE ARE NOW SIX MEMBERS ON THE BOARD 9401310132 940131 WHO'S NEWS BORDEN INC BORDEN INC NEW YORK RANDY D KAUTTO 48 WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS PACKAGED FOODS AND CONSUMER PRODUCTS CONCERN EFFECTIVE TOMORROW THE POST HAS BEEN VACANT SINCE APRIL HE WAS VICE PRESIDENT EMPLOYEE RELATIONS AT PHILIP MORRIS COS 9401310131 940131 WHO'S NEWS DIGICON INC DIGICON INC HOUSTON EDWARD R PRINCE JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED THE TITLES OF PRESIDENT AND CHIEF OPERATING OFFICER LARRY E LENIG JR RESIGNED FROM THOSE POSTS 9401310130 940131 TECHNOLOGY & MEDICINE NET AT TEXAS INSTRUMENTS INCREASES 72 BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC REPORTED A 72 JUMP IN FOURTHQUARTER EARNINGS AMID A CONTINUING SURGE IN ITS SEMICONDUCTOR BUSINESS BUT SAID IT WILL ELIMINATE 700 JOBS IN OTHER OPERATIONS NET INCOME IN THE QUARTER TOTALED 134 MILLION OR 142 A SHARE COMPARED WITH 78 MILLION OR 80 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 19 TO 237 BILLION FROM 199 BILLION LARGELY REFLECTING GAINS IN THE CHIP BUSINESS TEXAS INSTRUMENTS PREDICTED IT WILL ENJOY CONTINUED STRONG GROWTH IN SEMICONDUCTORS THE COMPANY WOULDN'T DISCLOSE HOW MUCH ITS CHIP BUSINESS GREW LAST YEAR BUT SAID IT WAS GREATER THAN AN ESTIMATED 30 INCREASE IN THE WORLDWIDE SEMICONDUCTOR MARKET THE COMPANY PROJECTS THE MARKET WILL EXPAND ABOUT 15 THIS YEAR WE WOULD THINK THAT WE HAVE PLENTY OF ROOM TO GAIN MARKET SHARE IN CHIPS SAID WILLIAM A AYLESWORTH THE COMPANY'S CHIEF FINANCIAL OFFICER NOT ALL OF TEXAS INSTRUMENTS' BUSINESSES ARE BOOMING THE COMPANY'S DEFENSE ELECTRONICS BUSINESS HURT BY DECLINING MILITARY SPENDING SHRANK A FURTHER 7 LAST YEAR TO 184 BILLION IN REVENUE MR AYLESWORTH SAID THAT A GRADUAL DECLINE OF SOMETHING LIKE THAT IS LIKELY TO CONTINUE AS A RESULT THE COMPANY SAID NEXT MONTH IT WILL ELIMINATE 500 OF THE APPROXIMATELY 14000 JOBS IN THE DEFENSE SEGMENT OVERALL TEXAS INSTRUMENTS EMPLOYS ALMOST 60000 PEOPLE THE COMPANY ALSO ANNOUNCED THAT IT WILL CUT 200 JOBS IN THE CONSOLIDATION OF ITS UNIT THAT MAKES CALCULATORS WITH THE UNIT THAT MAKES NOTEBOOK COMPUTERS AND LASER PRINTERS THE TWO UNITS CURRENTLY EMPLOY ABOUT 2000 PEOPLE ABOUT HALF THE JOBS TO BE CUT ARE OUTSIDE THE US THE CONSOLIDATION PLAN RESULTED IN A 23 MILLION PRETAX CHARGE AGAINST FOURTHQUARTER EARNINGS THE COMPANY'S REVENUE FROM PATENT ROYALTIES JUMPED 33 LAST YEAR TO 521 MILLION LARGELY BECAUSE OF NEW AGREEMENTS WITH PERSONALCOMPUTER MAKERS COVERING TEXAS INSTRUMENTS' COMPUTERSYSTEMS PATENTS AND INCREASED PRODUCTION BY COMPANIES HOLDING LICENSES UNDER TEXAS INSTRUMENTS' SEMICONDUCTOR PATENTS THE COMPANY SAID THE INCREASED ROYALTY REVENUE ALLOWED IT TO RAISE SPENDING ON RESEARCH AND DEVELOPMENT BY 26 LAST YEAR TO 590 MILLION TEXAS INSTRUMENTS SAID IT EXPECTS THAT FIGURE TO RISE TO ABOUT 700 MILLION THIS YEAR FOR ALL OF 1993 PROFIT CLIMBED 91 TO 472 MILLION OR 503 A SHARE FROM 247 MILLION OR 250 A SHARE REVENUE WAS UP 15 TO 852 BILLION FROM 744 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY TEXAS INSTRUMENTS' STOCK ROSE 125 CENTS A SHARE TO CLOSE AT 71 9401310129 940131 WHO'S NEWS MOBIL NAMES NOTO AS CHIEF MURRAY RETIRES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL MOBIL CORP ANNOUNCED THAT LUCIO A NOTO WILL TAKE OVER AS CHIEF EXECUTIVE WHEN ALLEN E MURRAY RETIRES FROM THAT POST AT THE END OF FEBRUARY INDIVIDUALS FAMILIAR WITH MR NOTO 55 YEARS OLD SAY MOBIL'S PROFILE IS LIKELY TO BECOME MORE PROMINENT UNDER HIM AS CHIEF FINANCIAL OFFICER A POST HE HELD FOR SEVERAL YEARS UNTIL JUST LAST YEAR MR NOTO MET WIDELY WITH ANALYSTS AND INVESTORS AND EVEN AFTER HIS APPOINTMENT AS PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR HE REMAINED ACCESSIBLE KNOWN AS LOU BY FRIENDS AND OTHER EXECUTIVES WITHIN THE COMPANY HE IS DESCRIBED BY PEOPLE WHO HAVE MET HIM AS OUTGOING AMIABLE AND ENERGETIC HE FOCUSES ON DETAILS AND IS SAID TO KNOW ALMOST EVERY FACET OF MOBIL'S BUSINESSES HE EVEN WENT TO THE EXTREME AT ONE POINT OF GOING TO WORK AT 530 AM TO OBSERVE THE WORKINGS OF AN OUTSIDE SERVICE THAT GATHERS NEWSPAPER CLIPPINGS CONCERNING MOBIL SAID AN INDIVIDUAL FAMILIAR WITH THAT VISIT MR MURRAY WHO BECAME CHIEF EXECUTIVE IN 1986 HAS RUN MOBIL ONE OF THE WORLD'S LARGEST OIL COMPANIES ON A LOWKEY BASIS ALMOST SHUNNING PUBLICITY MR NOTO'S APPOINTMENT WASN'T UNEXPECTED WHEN HE WAS ELECTED PRESIDENT LAST YEAR IT WAS ASSUMED THEN THAT THE BOARD OF DIRECTORS OF WHICH HE IS A MEMBER HAD CHOSEN HIM TO SUCCEED MR MURRAY UPON HIS RETIREMENT UNTIL THAT POINT HOWEVER MR NOTO WAS ONE OF POSSIBLY THREE CONTENDERS FOR THE JOB MOBIL OBSERVERS SAY HE WAS UP AGAINST TWO OTHER DIRECTORS PAUL J HOENMANS AND EUGENE RENNA WHO ALSO ARE TOP EXECUTIVES AT THE COMPANY IT APPEARS THAT MR NOTO LIKE MR MURRAY WILL CONSOLIDATE MANAGEMENT POWER UNDER HIMSELF WHEN HE TAKES ON THE TOP SPOT MARCH 1 MR MURRAY RETAINED THE TITLES OF CHIEF EXECUTIVE OFFICER CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER UNTIL HE PEELED OFF THE LAST TWO UPON MR NOTO'S ELECTION TO THOSE POSTS A COMPANY SPOKESMAN SAID MR NOTO WILL ASSUME ALL FOUR TITLES AS WELL MOBIL HAS BEEN SLOWLY RESTRUCTURING ITSELF DURING MR MURRAY'S TENURE UNDER HIS GUIDANCE MOBIL'S TOTAL DEBT DECLINED BY 30 TO 8 BILLION ANNUAL DIVIDENDS ROSE BY 48 TO 325 AND A FLABBY REFINING AND MARKETING BUSINESS WAS WHIPPED INTO SHAPE IT IS THOUGHT THAT MR NOTO WHO HAS BEEN AT THE COMPANY FOR 31 YEARS WILL KEEP THE COMPANY FOCUSED ON ITS STRATEGY OF COSTCUTTING WHILE CONCENTRATING ON THE CORE OIL AND CHEMICALS BUSINESSES BUT ANALYSTS SAY HE WILL LIKELY BRING AN INCREASED SENSE OF URGENCY TO THE CHALLENGE OF KEEPING MOBIL A HIGHLY PROFITABLE COMPANY DURING COMING YEARS WHEN OIL PRICES ARE EXPECTED TO REMAIN DEPRESSED MR NOTO HAS MUCH MORE OF A FINANCIAL ORIENTATION THAN THE TYPICAL OILCOMPANY CHIEF EXECUTIVE SAYS CONSTANTINE FLIAKOS AN ANALYST FOR MERRILL LYNCH & CO AND FORMER MOBIL EXECUTIVE WHO KNOWS MR NOTO INDEED MR NOTO'S BACKGROUND IS ECLECTIC FLUENT IN ITALIAN HE HAS A DEGREE IN PHYSICS FROM THE UNIVERSITY OF NOTRE DAME AS WELL AS A MASTER'S DEGREE IN BUSINESS ADMINISTRATION FROM CORNELL UNIVERSITY HE HELD MAJOR POSITIONS IN MARKETING AND PLANNING FOR MOBIL WORKING IN THE DIVERSE LOCATIONS OF JAPAN AND ITALY HE ALSO LIVED FOR A NUMBER OF YEARS IN JIDDA SAUDI ARABIA PEOPLE FAMILIAR WITH HIS CAREER SAY HE WAS INSTRUMENTAL IN STRIKING MANY OF THE DEALS WITH THE SAUDIS THAT HAVE PROVEN TO BE THE ANCHOR OF MOBIL'S BUSINESS OPERATIONS IN THAT REGION THE COMPANY HAS ABOUT 10 JOINT VENTURES WITH THE SAUDIS 9401310128 940131 INTERNATIONAL MUSTO TO BE SOUGHT BY UNIT OF METALLGESELLSCHAFT TORONTO METALL MINING CORP SEEKING CONTROL OF A LARGE COPPERANDGOLD DEPOSIT IN ARGENTINA SAID IT PLANS A TAKEOVER BID WITH AN INDICATED VALUE AS HIGH AS 184 MILLION FOR ALL THE SHARES OF INTERNATIONAL MUSTO EXPLORATIONS LTD BUT INTERNATIONAL MUSTO SAID IT HAD RECEIVED WHAT IT CONSIDERED A SUPERIOR PROPOSAL FROM ANOTHER BIG MINING COMPANY TO FORM A JOINT VENTURE TO DEVELOP THE MINE IT DIDN'T IDENTIFY THE OTHER MINING COMPANY METALL IS 51OWNED BY GERMANY'S FINANCIALLY TROUBLED METALLGESELLSCHAFT AG WHICH HAS SAID IT INTENDS TO SELL ITS STAKE IN THE CANADIAN MINING COMPANY AS PART OF THE PARENT COMPANY'S FINANCIAL RESTRUCTURING THE LUNDIN FAMILY OF GENEVA OWNS ABOUT 37 OF INTERNATIONAL MUSTO WHICH IS BASED IN VANCOUVER BRITISH COLUMBIA TORONTOBASED METALL SAID IT PLANS TO OFFER 1625 CANADIAN DOLLARS 1226 A SHARE FOR INTERNATIONAL MUSTO ON CONDITION THAT AT LEAST 501 OF THE SHARES ARE TENDERED UNDER ITS BID AND THAT MUSTO DOESN'T AGREE TO A JOINT VENTURE SALE OR OTHER AGREEMENT THAT WOULD RELINQUISH CONTROL OF THE BAJO DE LA ALUMBRERA PROPERTY IN NORTHWEST ARGENTINA IT SAID THE SHARES WOULD BE PURCHASED FOR CASH OR CONVERTIBLE PREFERRED SHARES OF METALL ON FRIDAY INTERNATIONAL MUSTO SHARES ROSE C450 TO CLOSE AT C1625 ON THE TORONTO STOCK EXCHANGE THE MININGEXPLORATION COMPANY HAS ABOUT 15 MILLION SHARES OUTSTANDING MUSTO SAID IN NOVEMBER THAT IT WOULD COST ABOUT 550 MILLION TO DEVELOP THE ALUMBRERA DEPOSIT WHICH IT SAID HAS MINEABLE RESERVES OF 58 BILLION POUNDS OF COPPER AND 10 MILLION OUNCES OF GOLD THE COMPANY SAID FRIDAY THAT IT HAD RECEIVED FOUR PROPOSALS TO SELL OR JOINTLY DEVELOP THE DEPOSIT IT SAID METALL'S WASN'T THE BEST OF THESE PLANS AND THAT IT WAS NEGOTIATING A LETTER OF INTENT WITH ANOTHER COMPANY FOR A JOINT VENTURE MUSTO ADDED THAT IT WON'T IDENTIFY THE OTHER COMPANY UNTIL THE LETTER HAS BEEN SIGNED AND THE PARTNERS HAVE MET WITH ARGENTINE OFFICIALS 9401310127 940131 WHO'S NEWS ALLIED CAPITAL ADVISERS INC ALLIED CAPITAL ADVISERS INC WASHINGTON JON A DELUCA 30 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER A NEW POSITION AT THIS INVESTMENTMANAGEMENT COMPANY MR DELUCA WAS A SENIOR MANAGER WITH A COOPERS & LYBRAND GROUP 9401310126 940131 WHO'S NEWS TRAVELERS INC TRAVELERS INC NEW YORK SAMUEL V MILLER JR 48 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THE FINANCIALSERVICES COMPANY EFFECTIVE MARCH 1 MR MILLER HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN EXPRESS CO'S AMEX LIFE ASSURANCE CO IN ADDITION JEROME T FADDEN 36 FORMERLY A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE GULF INSURANCE GROUP UNIT WAS NAMED TREASURER OF THE COMPANY HE SUCCEEDS JAY FISHMAN 41 WHO BECOMES CHIEF FINANCIAL OFFICER OF THE TRAVELERS INSURANCE COS UNIT MR FISHMAN CONTINUES AS SENIOR VICE PRESIDENT OF THE PARENT SEPARATELY TRAVELERS' SMITH BARNEY SHEARSON UNIT NAMED BRENDAN D BOYLE 39 DIRECTOR OF SALES AND MARKETING FOR ITS MUTUAL FUNDS SUCCEEDING ROBERT LEO WHO LEFT THE COMPANY TO BECOME DIRECTOR OF BROKERDEALER SALES AT MASSACHUSETTS FINANCIAL SERVICES IN BOSTON MR BOYLE IS A MANAGING DIRECTOR AT THE COMPANY 9401310125 940131 LEISURE & ARTS BOOKSHELF THE RICH TRADITION OF FIRSTPERSON PROSE BY JONATHAN ROSEN IT'S HARD TO BELIEVE THAT IN THIS CULTURE OF CONFESSION AND COMPLAINT THE PERSONAL ESSAY HAS NOT RECEIVED MORE OFFICIAL RECOGNITION PHILLIP LOPATE HAS SET OUT TO REMEDY THAT INJUSTICE WITH A VAST ANTHOLOGY THAT TRACES THE TRADITION FROM SENECA ONWARD THE ART OF THE PERSONAL ESSAY AN ANTHOLOGY FROM THE CLASSICAL ERA TO THE PRESENT ANCHOR BOOKS 777 PAGES 30 IS SO PACKED WITH PERSONALITY AND BEGUILING FIRSTPERSON PROSE THAT AFTER READING THE 70 OR SO PIECES IN THE COLLECTION I HAD TO FIGHT THE URGE TO BEGIN THIS REVIEW WITH A STORY FROM CHILDHOOD THE APPEALING ASSUMPTION BEHIND THE PERSONAL ESSAY AND THIS ANTHOLOGY IS THAT WHEN WRITERS SPEAK OF THEMSELVES THEY SPEAK A UNIVERSAL LANGUAGE SENECA'S PLAYS MAY SEEM MANNERED AND REMOTE TO MODERN READERS BUT WE ALL CAN UNDERSTAND HIM WHEN HE COMPLAINS ABOUT HIS ASTHMA OR DESCRIBES THE NOISY DISTRACTIONS OF LIVING ABOVE A BATH HOUSE MEDIEVAL JAPANESE POETRY MAY REQUIRE SCHOLARLY EXPLICATION BUT WHEN SEI SHONAGON THE 10THCENTURY COURT LADY IN HER LIST OF HATEFUL THINGS WRITES ONE HAS BEEN FOOLISH ENOUGH TO INVITE A MAN TO SPEND THE NIGHT IN AN UNSUITABLE PLACE AND THEN HE STARTS SNORING WE HEAR A VOICE THAT SOUNDS STRANGELY MODERN AS MONTAIGNE THE GREATGRANDDADDY OF SELFREVELATION WROTE AND ON THE LOFTIEST THRONE IN THE WORLD WE ARE STILL SITTING ONLY ON OUR OWN RUMP MR LOPATE FOLLOWS THE PERSONAL ESSAY FROM ITS ROOTS IN ANTIQUITY WHEN FIRSTPERSON PIONEERS LIKE PLUTARCH WROTE LETTERS TO SMUGGLE THEIR PERSONALITIES INTO PRINT THROUGH MONTAIGNE AND INTO ENGLAND WHERE WRITERS LIKE ADDISON AND STEELE BROUGHT THE PERSONAL ESSAY TO THE NEWSPAPER LONG BEFORE TOM WOLFE COOKED UP THE NEW JOURNALISM IN OUR OWN AGE A LARGE CHUNK OF THE BOOK IS DEVOTED TO AMERICA AND THERE IS A GENEROUS SELECTION FROM ABROAD INCLUDING A CHILLING ACCOUNT BY IVAN TURGENEV OF THE BEHEADING OF A MURDERER IN PARIS AND A LONG EXQUISITE MEDITATION BY THE JAPANESE NOVELIST JUNICHIRO TANIZAKI IN PRAISE OF SHADOWS IN WHICH THE WRITER LAMENTS THE DISAPPEARANCE OF THE MUTED CHARMS OF JAPANESE CULTURE UNDER THE HARSH LIGHT OF THE WEST WHILE INDIVIDUAL ESSAYS ARE UNFORTUNATELY UNDATED EACH AUTHOR IS INTRODUCED BY A BRIEF INFORMATIVE PASSAGE ESSAYS ARE GROUPED NOT ONLY BY BROAD CATEGORIES LIKE THE RISE OF THE ENGLISH ESSAY AND THE AMERICAN SCENE BUT IN A SECOND TABLE BY THEMES LIKE AMBITION CITY LIFE AND FOOD BUT DESPITE THE BOOK'S SCHOLARLY FORMAT IT IS CLEAR THAT MR LOPATE WHO HAS PUBLISHED TWO COLLECTIONS OF HIS OWN PERSONAL ESSAYS HAS FOLLOWED THE CREDO OF THE GENRE HE HAS CHOSEN WRITERS HE LIKES THIS IS A GOOD BOOK FOR RESTLESS READERS WRITTEN BY A RESTLESS AND UNSYSTEMATIC BUNCH OF WRITERS WHO OFTEN CHANGE THE TOPIC MIDWAY THROUGH QUOTE CLASSICAL AUTHORS WHEN IT SUITS THEM AND QUOTE THEMSELVES WHEN IT DOESN'T MANY OF THESE WRITERS SEEM LITERALLY UNABLE TO SIT STILL AND IT'S NOT SURPRISING HOW MANY TAKE TRAVEL AS THEIR SUBJECT ON GOING ON A JOURNEY BY WILLIAM HAZLITT STREET HAUNTING BY VIRGINIA WOOLF GOING OUT FOR A WALK BY MAX BEERBOHM WHO CONFESSES CRANKILY IT IS A FACT THAT NOT ONCE IN ALL MY LIFE HAVE I GONE OUT FOR A WALK I HAVE BEEN TAKEN OUT FOR WALKS BUT THAT IS ANOTHER MATTER THIS IS THE KIND OF ANTHOLOGY THAT WHILE PERFECT FOR THE CLASSROOM IT EVEN FULFILLS THE MULTICULTURAL CRITERIA OF MODERN CURRICULA BELONGS AS WELL IN A WRITER'S WORKSHOP IT IS FULL OF REMINDERS OF THE PLEASURES AND PERILS OF THE CRAFT FROM CARLOS FUENTES'S HOW I STARTED TO WRITE TO F SCOTT FITZGERALD'S DARK CONFESSION OF LITERARY AND EMOTIONAL BREAKDOWN THE CRACK UP FRANK O'CONNOR CALLED HIS STUDY OF THE SHORT STORY THE LONELY VOICE AND THE SAME TITLE COULD SERVE FOR THIS COLLECTION FOR NO MATTER HOW CHEERFUL OR GARRULOUS THE WRITERS IN THIS ANTHOLOGY MAY SEEM THE SHEER SOLITUDE INVOLVED IN WRITING IS FELT IN EVERY I PERSONAL ESSAYISTS ARE LIKE ONLY CHILDREN MAKING THE MOST OF WHAT IS AROUND THEM SEE MFK FISHER ON THE POTATO CHIP CHARLES LAMB ON EARS ROBERT BENCHLEY ON HIS OWN FACE GK CHESTERTON ON A PIECE OF CHALK THESE WRITERS HAVE AN UNCANNY TALENT FOR DISTILLING THEIR ARTISTRY INTO A SMALL SPACE AND A FEW PAGES IS ENOUGH TO GIVE ONE A LASTING TASTE OF THE BRUSQUE SEDUCTIONS OF HAZLITT THE ASSERTIVE MODESTY OF EB WHITE THE REFINED RAGE OF JAMES BALDWIN READING WOOLF'S THREEPAGE ESSAY THE DEATH OF THE MOTH IS LIKE SWALLOWING ALL HER BOOKS IN A SINGLE PILL THE LAST 10 OR SO ESSAYS IN THE COLLECTION REPRESENT THE WORK OF CONTEMPORARY WRITERS AMONG THEM ADRIENNE RICH AND RICHARD RODRIGUEZ PERHAPS BECAUSE THEY ARE CLOSER TO US THEY SEEM EASIER TO QUARREL WITH AS FINAL STATEMENTS IN A BOOK SO FILLED WITH FINE WRITING NOT THAT THERE ISN'T MUCH TO ADMIRE HERE INCLUDING MR LOPATE'S OWN POIGNANTLY REVEALING AGAINST JOIE DE VIVRE AND JOAN DIDION'S GOODBYE TO ALL THAT ANTHOLOGIES HELP CREATE GENRES BEYOND THE INDIVIDUAL ESSAYS MR LOPATE HAS GIVEN US A GENRE PERFECTLY ADAPTED TO OUR FRACTURED SKEPTICAL CONFESSIONAL AGE MR ROSEN IS ASSOCIATE EDITOR OF THE FORWARD 9401310124 940131 MARKETING & MEDIA THREE FINANCIAL CONCERNS MAY SETTLE MAXWELL SUIT LONDON LEHMAN BROTHERS INC CAPELCURE MYERS LTD AND INVESCO PLC ARE CLOSE TO SETTLING FOR ABOUT 30 MILLION 45 MILLION A LAWSUIT CONCERNING THEIR ALLEGED ROLE IN THE FALL OF THE LATE BRITISH PUBLISHER ROBERT MAXWELL'S EMPIRE THE PROPOSED SETTLEMENT WHICH TWO PEOPLE SAID MAY BE ANNOUNCED TODAY WOULD WIND UP A 200 MILLION CLAIM AGAINST THE FINANCIAL COMPANIES BY TRUSTEES OF THE EMPLOYEE PENSION FUND OF MIRROR GROUP PLC A FORMER MAXWELL COMPANY AFTER MR MAXWELL'S 1992 DEATH BRITISH PROSECUTORS CHARGED THAT HE HAD PLUNDERED ABOUT 300 MILLION FROM HIS COMPANIES' PENSION FUNDS IN AN UNSUCCESSFUL ATTEMPT TO KEEP HIS INDEBTED EMPIRE AFLOAT THE PENSIONFUND LAWSUIT ACCUSED THE THREE COMPANIES OF PARTICIPATING IN IMPROPER SECURITIES TRANSACTIONS ORDERED BY MR MAXWELL AND OF FAILING TO BLOW THE WHISTLE ON HIS ILLEGAL ACTIVITIES ALL THREE HAVE DENIED THE CHARGES ONE PERSON WHO DECLINED TO BE NAMED SAID THE 30 MILLION PAYMENT WOULD BE SPLIT NEARLY EVENLY AMONG THE THREE DEFENDANTS SUNDAY NIGHT A SPOKESWOMAN FOR LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO DECLINED TO COMMENT BUT CONFIRMED THAT SETTLEMENT DISCUSSIONS ARE GOING ON IN ANTICIPATION OF TODAY'S SCHEDULED START OF THE TRIAL IN LONDON SPOKESMEN FOR CAPELCURE MYERS AND INVESCO ALSO DECLINED TO COMMENT 9401310123 940131 WHO'S NEWS NEW YORK LIFE INSURANCE CO NEW YORK LIFE INSURANCE CO NEW YORK ALICE T KANE 46 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT ASSET MANAGEMENT AND INVESTMENT PRODUCTS OPERATIONS SHE SUCCEEDS THOMAS P O'CONNOR 49 WHO SAID HE IS RETIRING IN JUNE MS KANE A MEMBER OF THE EXECUTIVE MANAGEMENT COMMITTEE REMAINS GENERAL COUNSEL FOR THE COMPANY SEPARATELY SENIOR VICE PRESIDENTS GEORGE J TRAPP AND FREDERICK SIEVERT BOTH 46 WERE NAMED TO THE EXECUTIVE MANAGEMENT COMMITTEE ALSO JEFFERSON C BOYCE 36 WAS NAMED A SENIOR VICE PRESIDENT RESPONSIBLE FOR THE MUTUAL FUNDS AND STRUCTURED FINANCE DEPARTMENTS AND THE NYLIFE SECURITIES DIVISION MR BOYCE HAS BEEN A VICE PRESIDENT IN THE COMPANY'S PENSION DEPARTMENT MICHAEL GALLO 39 WAS PROMOTED TO SENIOR VICE PRESIDENT RESPONSIBLE FOR THE NORTHEASTERN AGENCIES HE HAD BEEN VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER FOR INDIVIDUAL OPERATIONS 9401310122 940131 INTERNATIONAL INDIAN LAWMAKER WANTS COCACOLA PEPSI OUSTED NEW DELHI AP A FIREBRAND INDIAN LAWMAKER THREATENED COCACOLA CO AND PEPSICO INC WITH PICKET LINES IN FRONT OF BOTTLING PLANTS AND RETAILERS UNLESS THE TWO BEVERAGE COMPANIES QUIT THE COUNTRY BY THE END OF FEBRUARY AT A NEWS CONFERENCE FRIDAY PARLIAMENT MEMBER GEORGE FERNANDES CALLED THE COMPANIES THE ADVANCE GUARD OF AMERICAN CAPITALISM IN ITS DESIGN TO TAKE OVER THE WORLD WHEN HE WAS INDUSTRY MINISTER IN 1977 MR FERNANDES THREW COCACOLA OUT OF INDIA WHEN IT REFUSED TO RELINQUISH 60 OF ITS STOCK TO LOCAL INVESTORS OR DISCLOSE ITS SECRET FORMULA NOW HOWEVER HIS PARTY DOESN'T CONTROL THE GOVERNMENT AND THE CURRENT GOVERNMENT FAVORS FOREIGN INVESTMENT ATLANTABASED COCACOLA RETURNED TO INDIA IN OCTOBER BUYING OUT INDIA'S LARGEST SOFTDRINK PRODUCER PEPSI CAME HERE IN 1992 AFTER THE GOVERNMENT BEGAN OPENING ITS SHELTERED ECONOMY THE THREATS DIDN'T SEEM TO BOTHER THE TWO BEVERAGE COMPANIES WE WILL CARRY ON WITH OUR BUSINESS WE ARE HERE WITH THE PERMISSION OF THE GOVERNMENT OF INDIA SAID PM SINHA MANAGING DIRECTOR OF PEPSI'S INDIA OPERATIONS ADDING SUCH DEMONSTRATIONS WON'T AFFECT OUR SALES THEY HAVE TRIED SIMILAR THINGS AGAINST NESTLE AND UNILEVER AND IT HASN'T WORKED 9401310121 940131 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT RICHARD A BERTAGNA 59YEAROLD PRESIDENT OF HUGHESAVICOM INTERNATIONAL INC WAS ELECTED CHAIRMAN OF THAT UNIT LENARD STUESSEL 58 SUCCEEDS MR BERTAGNA AS PRESIDENT OF THE GLENDORA CALIF COMPANY WHICH IS INVOLVED IN INTERACTIVE PASSENGER COMMUNICATIONS AND ENTERTAINMENT SYSTEMS FOR THE COMMERCIAL AIRLINE INDUSTRY MR STUESSEL PREVIOUSLY WAS DIRECTOR OPERATIONS WITH HUGHES MISSILE SYSTEMS CO BOTH COMPANIES ARE UNITS OF GM HUGHES ELECTRONICS ITSELF A GM UNIT 9401310120 940131 WHO'S NEWS DATA SWITCH CORP DATA SWITCH CORP SHELTON CONN W JAMES WHITTLE 41 WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MANAGEMENT AND CONTROL SYSTEMS MAKER MR WHITTLE FORMERLY VICE PRESIDENT CORPORATE CONTROLLER SUCCEEDS MICHAEL D STASHOWER 67 WHO IS RETIRING BUT REMAINS A DIRECTOR ALSO MICHAEL RUGGIERI 42 WAS NAMED VICE PRESIDENT STRATEGIC MARKETING A NEW POST MR RUGGIERI WAS VICE PRESIDENT OF CUSTOMER SERVICE 9401310119 940131 MAYORS DON'T LIKE PLAN TO BAR BONDFIRM FUNDS WASHINGTON OPPOSITION IS BUILDING AMONG BIGCITY MAYORS TO A PROPOSAL DESIGNED TO END THE USE OF POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS TO SECURE MUNICIPAL BOND BUSINESS IT'S A SERIOUS CONCERN FOR ALL OF US SAID CHICAGO MAYOR RICHARD DALEY AT A MEETING OF THE US CONFERENCE OF MAYORS HE AND OTHER MAYORS QUESTIONED THE PROPOSAL'S FAIRNESS THE PROPOSED RULE WOULD BAR A BOND DEALER FROM DOING BUSINESS WITH A BONDISSUING JURISDICTION WITHIN TWO YEARS OF WHEN THE DEALERS ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL FINANCE PROFESSIONALS MAKE A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION THE RULE WAS FASHIONED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD AND IS PENDING BEFORE THE SECURITIES AND EXCHANGE COMMISSION WHICH MUST APPROVE IT BEFORE IT TAKES EFFECT THE SEC HAS INVITED COMMENTS BY FEB 11 THE MAYORS' CONFERENCE UNTIL NOW HAS BEEN SILENT ON THE PROPOSAL BUT JERRY ABRAMSON MAYOR OF LOUISVILLE KEN AND PRESIDENT OF THE US CONFERENCE OF MAYORS SAID MAYORS WILL REGISTER THEIR CONCERNS WITH SEC CHAIRMAN ARTHUR LEVITT AND PROBABLY THE WHITE HOUSE A DRAFT MAYORAL STATEMENT ON THE BOND RULE DEPICTS THE PROPOSAL AS INHERENTLY UNFAIR TO STATE AND LOCAL OFFICIALS PARTICULARLY TO THOSE WHO CHALLENGE CONGRESSIONAL INCUMBENTS 9401310118 940131 WHO'S NEWS PENNAMERICAN GROUP INC PENNAMERICA GROUP INC HATBORO PA THIS COMMERCIAL AND AUTO INSURER NAMED THREE DIRECTORS EXPANDING THE BOARD TO NINE MEMBERS DAVID P COHEN PRESIDENT AND FOUNDER OF ATHENA CAPITAL MANAGEMENT LAWRENCE J SCHOENBERG RETIRED CHIEF EXECUTIVE OFFICER OF AGS COMPUTERS INC AND M MOSHE PORAT CHAIRMAN OF THE RISK MANAGEMENT AND INSURANCE DEPARTMENT AT TEMPLE UNIVERSITY SCHOOL OF BUSINESS AND MANAGEMENT 9401310117 940131 FINANCING BUSINESS SUNCOR INC SUNCOR INC SAID IT PLANS TO ISSUE 100 MILLION CANADIAN DOLLARS US756 MILLION OF 10YEAR UNSECURED DEBENTURES THE ISSUE IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER AND PROCEEDS WILL BE USED TO REDUCE BANK DEBT SUNCOR SAID TERMS HAVEN'T BEEN SET LEAD UNDERWRITER IS SCOTIAMCLEOD INC A TORONTO INVESTMENT DEALER SUNCOR IS A TORONTOBASED OIL AND NATURAL GAS PRODUCTION REFINING AND MARKETING CONCERN 9401310116 940131 HUNGARY SEEKING TO SPEED UP PACE OF PRIVATIZATION BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST HUNGARY'S TWO PRIVATIZATION AGENCIES WILL BE MERGED IN A MOVE TO ACCELERATE THE SALE OF REMAINING STATE ASSETS ACCORDING TO PRIVATIZATION OFFICIALS THE OVERHAUL OF THE STATE PROPERTY AGENCY AND ITS SISTER ORGANIZATION THE STATE ASSET HOLDING AGENCY OR AVRT COMES AS THE PRIVATIZATION EFFORT ENTERS ITS FINAL PHASE BEFORE A GENERAL ELECTION SCHEDULED FOR MAY IT ALSO OCCURS AMID ATTEMPTS BY THE GOVERNMENT TO SPUR DOMESTIC SHARE OWNERSHIP THROUGH INCENTIVES AND EASY CREDIT TERMS OFFICIALS FORECAST THAT THE REORGANIZATION WILL LEAD TO QUICKER SALES IN THE FIRST HALF OF THE YEAR OF STATE COMPANIES CONSIDERED TO BE THE LAST OF HUNGARY'S CROWN JEWELS SUCH AS UTILITIES THE OIL AND GAS COMPANY PHARMACEUTICAL MANUFACTURERS AND SEVERAL BANKS ALL OF WHICH ARE UNDER AVRT CONTROL IT ALSO WILL ALLOW ASSETS FROM THESE COMPANIES TO BE EASILY MOVED INTO A SOONTOBE LAUNCHED SMALL INVESTORS PROGRAM WHICH IS AIMED AT ENCOURAGING HUNGARIAN PARTICIPATION IN PRIVATIZATION AND OTHER PEOPLE'S CAPITALISM PROJECTS SUCH AS SHARE ISSUES ON THE BUDAPEST STOCK EXCHANGE OBSERVERS SAY CONSOLIDATION WAS INEVITABLE IN LIGHT OF RECENT LEGAL AND POLICY SQUABBLES BETWEEN THE TWO AGENCIES ONE WHICH INVOLVED WHO OWNS AND HAS THE RIGHT TO SELL THE STATE ELECTRICITY UTILITY CALLED INTO QUESTION WHY TWO SEPARATE ORGANIZATIONS EXIST THE AVRT WHICH WAS SPUN OFF FROM THE SPA IN 1992 IS RESPONSIBLE FOR PARTIALLY PRIVATIZING STRATEGIC STATE COMPANIES AND MANAGING WHAT REMAINS THE SPA SELLS OFF STATE ASSETS IN THEIR ENTIRETY BOTH AGENCIES ARE IN FACT IN THE DOLDRUMS EXCEPT FOR THE ONE SPECTACULAR 875 MILLION SALE OF 30 OF THE TELEPHONE COMPANY LATE LAST YEAR TO A GERMANUS CONSORTIUM THE AVRT HAS LAGGED BEHIND THE SPA AND CURRENTLY HOLDS 162 COMPANIES VALUED AT AN ESTIMATED 14 TRILLION FORINTS 1372 BILLION YET THE SPA ALSO IS FACING A SLOWDOWN IN HARDCURRENCY CASH SALES AFTER AN IMPRESSIVE START LARGELY BECAUSE IT IS RUNNING OUT OF HOT PROPERTIES FROM A TOTAL OF ABOUT 2000 COMPANIES WHEN IT BEGAN OPERATIONS ALMOST FOUR YEARS AGO THE SPA'S PORTFOLIO HAS DWINDLED TO 764 FIRMS VALUED AT 430 BILLION FORINTS MANY ARE DEBTRIDDEN AND NEED COSTLY RESTRUCTURING BEFORE BUYERS CAN BE FOUND 9401310115 940131 LIZ CLAIBORNE SEES BUSINESS MALAISE' DURING FIRST HALF BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH SPRING RETAIL ORDER TRENDS STILL SLUGGISH LIZ CLAIBORNE INC DOESN'T EXPECT ANY SIGNIFICANT PICKUP IN ITS BUSINESS IN THE FIRST HALF WE DON'T SEE OURSELVES BREAKING OUT OF THE MALAISE THAT HIT US IN MID1993 UNTIL THE THIRD QUARTER JEROME CHAZEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW BUT THE REBOUND IN THE SECOND HALF SHOULD PROVIDE AN IMPROVEMENT IN EARNINGS FOR ALL OF 1994 COMPARED WITH 1993 HE SAID CLAIBORNE PLANS TO RELEASE ITS FOURTHQUARTER AND FULLYEAR RESULTS FEB 14 MR CHAZEN CONTINUES TO STICK BY THE APPAREL COMPANY'S PROJECTIONS THAT 1993 NET INCOME WAS ABOUT 40 LOWER THAN 1992'S 2188 MILLION OR 261 A SHARE ON SALES OF 219 BILLION HE DECLINED TO COMMENT ON ANALYSTS' ESTIMATES THAT FOURTHQUARTER EARNINGS WERE 15 CENTS TO 22 CENTS A SHARE COMPARED WITH 63 CENTS A YEAR EARLIER IN THE FIRST NINE MONTHS CLAIBORNE HAD NET INCOME OF 112 MILLION OR 137 A SHARE ON SALES OF 167 BILLION EVER SINCE JULY WHEN CLAIBORNE DISCOVERED THAT IT WOULD BE SADDLED WITH HIGHERTHANANTICIPATED INVENTORIES THE COMPANY HAS BEEN LABORING TO REVITALIZE ITS BUSINESS PARTICULARLY THE CORE SPORTSWEAR DIVISION THAT GENERATES ABOUT HALF OF CLAIBORNE'S SALES CLAIBORNE WHICH MANUFACTURES GOODS IN 34 COUNTRIES HAS FOCUSED PARTICULARLY ON SHORTENING PRODUCTION LEAD TIMES TO HELP IT ADAPT MORE QUICKLY TO SHIFTING FASHION TRENDS FOR MUCH OF ITS MERCHANDISE SLATED FOR FALL DELIVERY HE SAID CLAIBORNE HAS CUT PRODUCTION LEAD TIME 25 TO 30 WEEKS INSTEAD OF 40 MR CHAZEN EXPECTS THAT WITHIN THE NEXT SIX TO NINE MONTHS PRACTICALLY ALL OF CLAIBORNE'S COLLECTIONS WILL FALL WITHIN THE 30WEEK WINDOW IN 1994 CLAIBORNE EXPECTS TO SEE A LOT OF PROGRESS IN ITS RUSS TOGS DIVISION OF WOMEN'S APPAREL WHICH IS PRICED LOWER THAN ITS CLAIBORNE LABEL THE MOST DIFFICULT PART OF TAKING OVER RUSS HAS BEEN SETTING UP THE INFRASTRUCTURE AND HIRING PRACTICALLY ALL NEW PEOPLE HE SAID THOUGH SALES OF THE DIVISION WHICH INCLUDES THE BRANDS VILLAGER CRAZY HORSE AND RUSS ROSE TO NEARLY 100 MILLION FROM 21 MILLION IN 1992 MR CHAZEN SAID IT WAS STILL UNPROFITABLE IN 1993 CLAIBORNE PLANS TO OPEN 20 TO 25 NEW STORES IN ITS 55STORE FIRST ISSUE WOMEN'S APPAREL CHAIN THIS YEAR HE SAID THE COMPANY ALSO WILL ADD ABOUT THREE MORE CLAIBORNE FACTORY OUTLET STORES TO THE 40 IT NOW OPERATES HE SAID EARLIER LAST WEEK ROBERT BERNARD THE PRESIDENT OF CLAIBORNE'S INTERNATIONAL DIVISION RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF J CREW GROUP INC CLAIBORNE PLANS TO FILL MR BERNARD'S POSITION FROM WITHIN 9401310114 940131 INTERNATIONAL GERMANY'S METAL WORKERS CALL STRIKE IN WAGE BATTLE BONN MARKING THE LATEST ESCALATION IN WAGE NEGOTIATIONS GERMANY'S POWERFUL METALS UNION IG METALL CALLED FOR MASSIVE WARNING STRIKES IN WESTERN GERMANY BEGINNING TODAY NEGOTIATING ON BEHALF OF 37 MILLION WORKERS IN WESTERN GERMANY IG METALL IS SEEKING WAGE INCREASES OF UP TO 6 AND HAS COME OUT VEHEMENTLY AGAINST ATTEMPTS TO DECREASE REAL WAGES AND REDUCE CERTAIN BENEFITS STEPS COMPANIES SAY ARE NECESSARY FOR SURVIVAL HANSJOACHIM GOTTSCHOL PRESIDENT OF THE INDUSTRY'S EMPLOYER ASSOCIATION GESAMTMETALL WARNED THAT PROLONGED STRIKES COULD LEAD TO THE BANKRUPTCY OF 10 OF THE COMPANIES IN THE INDUSTRY CITING UNCOMPETITIVE LABOR COSTS COMPANIES WANT A WAGE FREEZE A CUT IN HOLIDAY BENEFITS AND A MORE FLEXIBLE WORKWEEK UNION PRESIDENT KLAUS ZWICKEL SAID EMPLOYERS UNDERESTIMATE THE RAGE OF WORKERS AND THEIR WILLINGNESS TO STRIKE NEVERTHELESS THERE APPEARS TO BE ROOM FOR COMPROMISE IG METALL HAS SAID IT IS WILLING TO ACCEPT LOWER WAGE INCREASES IF COMPANIES AGREE TO JOB GUARANTEES OR LAYOFF PREVENTION THE EMPLOYERS' ASSOCIATION FOR ITS PART OVER THE WEEKEND STRESSED ITS INTEREST IN RETURNING TO THE NEGOTIATING TABLE 9401310113 940131 WHITE HOUSE AIMS AT FIGHTING CRIME IN PUBLIC HOUSING WITH NEW PROGRAM BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS DEVELOPING A CONCERTED AND COORDINATED PROGRAM TO FIGHT WHITE COLLAR AND VIOLENT CRIME IN PUBLIC HOUSING ACCORDING TO AN OUTLINE OF THE PROGRAM CALLED OPERATION SAFE HOME IT WOULD TARGET FRAUD IN PUBLIC HOUSING ADMINISTRATION EQUITY SKIMMING IN MULTIFAMILY INSURED HOUSING AND VIOLENT CRIME IN PUBLIC HOUSING VICE PRESIDENT GORE PLANS TO ANNOUNCE THE PROGRAM THIS WEEK ALONG WITH THE HEADS OF THE DEPARTMENTS OF JUSTICE TREASURY AND HOUSING AND URBAN DEVELOPMENT IT WOULD BE ANOTHER IN A SERIES OF HIGHPROFILE MOVES EMPHASIZING THE ADMINISTRATION'S COMMITMENT TO COMBATTING CRIME THIS EFFORT IS ENTIRELY CONSISTENT WITH THE PRESIDENT'S CRIME INITIATIVE SAYS THE DESCRIPTION OF THE PROGRAM HUD HOUSING IS A MAJOR LOCUS OF VIOLENT CRIME WE MUST NOT ALLOW POOR PEOPLE WHO NEED HUD ASSISTANCE TO BE CONTINUALLY VICTIMIZED FEDERAL BUREAU OF INVESTIGATION OFFICIALS AND INVESTIGATORS IN HUD'S INSPECTOR GENERAL'S OFFICE PROBING HOUSING FRAUD EXPECT A SERIES OF SIMULTANEOUS ARRESTS SEARCHES AND INDICTMENTS WITHIN SIX TO NINE MONTHS IT SAYS JUSTICE AND HUD OFFICIALS WOULD DEVELOP A STRATEGY FOR CASES WHERE PRIVATE OWNERS ILLEGALLY DIVERT PROJECT FUNDING RESULTING IN HUGE LOSSES IN TAXPAYER MONEY AND SUBSTANDARD LIVING CONDITIONS ACCORDING TO THE OUTLINE ONE OFFICIAL SAID SUCH SCHEMES COULD INCLUDE THE OVERVALUATION OF A PROPERTY IN ORDER TO OBTAIN EXCESSIVE GOVERNMENTBACKED FINANCING FOR ITS REMODELING OFFICIALS BELIEVE ABOUT 25 OF HUD'S 50 BILLION FUND FOR MULTIFAMILY HOUSING PROJECTS IS AT RISK OF BEING HIT BY FRAUDULENT OPERATORS LAW ENFORCEMENT OFFICIALS PLAN TO ESTABLISH FEDERAL STATE AND LOCAL TASK FORCES TO ATTACK CRIME IN PUBLIC AND ASSISTED HOUSING THE TREASURY DEPARTMENT'S BUREAU OF ALCOHOL TOBACCO AND FIREARMS AND THE SECRET SERVICE ALONG WITH THE DRUG ENFORCEMENT ADMINISTRATION THE FBI US ATTORNEYS AND HUD'S INSPECTOR GENERAL'S OFFICE WOULD WORK WITH LOCAL POLICE DEPARTMENTS HOUSING MANAGEMENT AND RESIDENT GROUPS UNDER THE PLAN OFFICIALS IN THE INSPECTOR GENERAL'S OFFICE ACCORDING TO THE OUTLINE WILL FOCUS ON MAJOR INTEGRITY AND ABUSE ISSUES RATHER THAN ON STRICT BUREAUCRATIC COMPLIANCE WITH RULES AND REGULATIONS SEPARATELY ATTORNEY GENERAL JANET RENO CONTINUED HER SEARCH FOR SOMEONE TO SUCCEED DEPUTY ATTORNEY GENERAL PHILIP HEYMANN WHO ANNOUNCED HIS RESIGNATION THURSDAY AMONG THOSE MENTIONED AS POSSIBLE CANDIDATES ARE JO ANN HARRIS ASSISTANT ATTORNEY GENERAL FOR THE CRIMINAL DIVISION JAMIE GOERLICK GENERAL COUNSEL AT THE PENTAGON CHARLES RUFF A WASHINGTON LAWYER WHO PREVIOUSLY SERVED IN SEVERAL JUSTICE DEPARTMENT POSITIONS AND IRVIN NATHAN MR HEYMANN'S PRINCIPAL DEPUTY 9401310112 940131 INTERNATIONAL VIRGIN ATLANTIC GETS SETTLEMENT FROM BRITISH AIR SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH AIRWAYS PLC SAID IT WILL PAY VIRGIN ATLANTIC AIRWAYS 265 MILLION 4 MILLION TO SETTLE A DISPUTE OVER AIRCRAFT MAINTENANCE CONTRACTS THE PAYOUT IS THE LATEST IN A STRING OF CLAIMS COUNTERCLAIMS AND SETTLEMENT ATTEMPTS INVOLVING THE TWO FEUDING BRITISH AIRLINES ABOUT A YEAR AGO A TENTATIVE AGREEMENT BETWEEN THE TWO FELL APART WHEN VIRGIN CLAIMED THAT BRITISH AIRWAYS WAS RENEGING ON CERTAIN TERMS AND CONDITIONS VIRGIN SAID BRITISH AIRWAYS HAD OFFERED IT 9 MILLION AS A SETTLEMENT BUT HAD DEMANDED SEVERAL CONDITIONS FOR THE PAYMENT BRITISH AIRWAYS WHICH THEN STRONGLY DENIED ANY MONEY WAS ON THE TABLE ADMITTED FRIDAY THAT IT HAD INDEED OFFERED 9 MILLION THE SETTLEMENT DOESN'T INTERFERE WITH VIRGIN'S ANTITRUST SUIT AGAINST BRITISH AIRWAYS IN THE US THE CASE OPENS ON MARCH 25 VIRGIN IS SEEKING DAMAGES OF 325 MILLION THE MAINTENANCE DISPUTE AROSE IN 1988 AFTER BRITISH AIRWAYS REFUSED TO COMPENSATE VIRGIN FOR DAMAGE CAUSED TO VIRGIN AIRCRAFT UNDER MAINTENANCE BRITISH AIRWAYS SAID THE 265 MILLION PAYOUT WAS CONSIDERABLY LESS THAN THE 6 MILLION THAT VIRGIN HAD DEMANDED BUT WILL WHITEHORN A VIRGIN ATLANTIC SPOKESMAN SAID THE COMPANY HAD ONLY ASKED FOR 3 MILLION TO SETTLE IT IS A TOTAL AND UTTER LIE THAT WE DEMANDED 6 MILLION HE SAID BRITISH AIRWAYS IS ALSO PAYING ALL LEGAL COSTS VIRGIN INCURRED IN THIS AFFAIR 9401310111 940131 TAIWAN TO RESUME TALKS WITH CHINA AMID GROWING PESSIMISM OVER ISSUES BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN CHINA AND TAIWAN WILL RESUME HIGHLEVEL TALKS IN BEIJING THIS WEEK AMID SHARPLY LOWER EXPECTATIONS IN TAIWAN'S POLITICAL AND BUSINESS CIRCLES ABOUT WHAT CAN BE EXPECTED FROM THE DIALOGUE JUST NINE MONTHS AGO THE TWO GOVERNMENTS LAUNCHED A HESITANT BUT HISTORIC RAPPROCHEMENT THAT WAS GREETED ENTHUSIASTICALLY BY MANY IN TAIWAN AS THE BEGINNING OF AN ERA OF COOPERATION BETWEEN THE LONGESTRANGED NEIGHBORS BUT THE EUPHORIA HAS EVAPORATED AS THE TWO SIDES SO FAR HAVE FAILED TO FIND SOLUTIONS TO THE PRACTICAL PROBLEMS ARISING FROM THEIR ECONOMIC LINKS AND UNOFFICIAL EXCHANGES THOSE IN TAIWAN WHO ARE EAGER TO SEE DEEPER TIES NOW UNDERSTAND THAT EACH GOVERNMENT'S POLITICAL AGENDA WILL MAKE ACCORDS ON ALMOST ANY ISSUE DIFFICULT TO ACHIEVE INDEED THE VAST GULF WAS DEMONSTRATED LAST MONTH WHEN FUNDAMENTAL DIFFERENCES OVER NOTIONS OF SOVEREIGNTY BLOCKED AGREEMENT EVEN ON AN ISSUE THAT BOTH GOVERNMENTS WERE EAGER TO SETTLE HOW TO STOP A WAVE OF HIJACKINGS TO TAIWAN FROM CHINA AFTER 45 YEARS OF SEPARATION SUSPICION AND MISTRUST STILL EXIST SAYS CHEN CHIENJEN A MEMBER OF TAIWAN'S LEGISLATURE AND A VICE SECRETARYGENERAL OF THE RULING KUOMINTANG IT'S VERY CLEAR PEOPLE ON BOTH SIDES ARE TRYING TO TEST HOW FAR THE OTHER SIDE WANTS TO GO DESPITE THEIR DIFFERENCES BOTH GOVERNMENTS WANT TO MAINTAIN A DIALOGUE AS A RESULT THEY HAVE AGREED ON A NEW TACK THIS WEEK USING HIGHERLEVEL OFFICIALS THAN IN THE PAST TWO ROUNDS OF TALKS YET ADOPTING A MOREINFORMAL AGENDA TAIWAN WILL BE REPRESENTED BY CHIAO JENHO THE RECENTLY APPOINTED SECRETARYGENERAL OF THE STRAITS EXCHANGE FOUNDATION THE OSTENSIBLY PRIVATE BODY SET UP TO CONDUCT TALKS WITH CHINA WHILE MAINTAINING TAIWAN'S FICTIONAL PROHIBITION ON GOVERNMENTTOGOVERNMENT CONTACTS MR CHIAO PREVIOUSLY VICE CHAIRMAN OF THE CABINETLEVEL AGENCY OVERSEEING CROSSSTRAIT RELATIONS SUCCEEDED CHEYNE CHIU THE OFFICIAL WHO LED TAIWAN'S TEAM TO BILATERAL TALKS IN SINGAPORE IN APRIL MR CHIU RESIGNED BECAUSE OF POLICY AND PERSONALITY DIFFERENCES WITH SENIOR GOVERNMENT OFFICIALS TAIWAN OFFICIALS PORTRAY THIS WEEK'S TALKS AS A GETACQUAINTED SESSION FOR MR CHIAO WHO HASN'T HAD FACETOFACE CONTACT WITH THE CHINESE BEFORE THE AGENDA FOR HIS FIVEDAY VISIT IS MUCH FREER THAN THE PAST TWO ROUNDS OF NEGOTIATIONS WHICH INVOLVED LOWERRANKING REPRESENTATIVES HE WILL MEET SEVERAL TIMES WITH TANG SHUBEI HEAD OF THE CHINESE BODY SET UP TO DEAL WITH TAIWAN AND IS LIKELY TO MEET WITH MORESENIOR OFFICIALS AS WELL THE TWO SIDES PLAN TO DISCUSS STALEMATED ISSUES INCLUDING THE REPATRIATION OF HIJACKERS TO CHINA FROM TAIWAN AND SETTLEMENT OF FISHING DISPUTES THEY ALSO ARE SLATED TO DISCUSS MATTERS RELATED TO TAIWAN'S EXTENSIVE INVESTMENTS IN CHINA SENIOR TAIWAN OFFICIALS ARE GOING OUT OF THEIR WAY TO PLAY DOWN HOPES FOR ANY KIND OF BREAKTHROUGH AT THE BEIJING MEETINGS THEY VIEW THE CURRENT PHASE OF TALKS AS A CONFIDENCEBUILDING STAGE THAT WILL HELP TO BRIDGE DIFFERENCES BUT THERE IS CONSIDERABLE UNCERTAINTY IN TAIPEI ABOUT THE RELATIONSHIP BECAUSE OF THE LEADERSHIP ISSUE IN BEIJING UNTIL CHINA'S AGED LEADER DENG XIAOPING PASSES FROM THE SCENE MANY OF TAIWAN'S POLICY MAKERS VIEW IT AS UNLIKELY THAT BEIJING WILL CHANGE ITS POLICY TOWARD TAIWAN CHINA STILL CLAIMS SOVEREIGNTY OVER TAIWAN AS A PROVINCE EVEN THOUGH TAIWAN'S GOVERNMENT IN 1991 RENOUNCED ITS OWN CLAIM TO RULE ALL OF CHINA A MORE CYNICAL VIEW HOLDS THAT TAIWAN'S GOVERNMENT IS JUST GOING THROUGH THE MOTIONS AT THIS STAGE THEY'RE DOING IT FOR PUBLICOPINION PURPOSES REALLY SAYS A FOREIGN DIPLOMAT OTHER OBSERVERS SAY TAIPEI WON'T BUDGE ON ANY ISSUE AS LONG AS BEIJING CONTINUES TO DEMONSTRATE HOSTILITY TOWARD TAIWAN IN THE INTERNATIONAL ARENA THE CONTINUING EFFORT TO ISOLATE TAIWAN WAS MOST EVIDENT EARLIER THIS MONTH WHEN FRANCE PUBLICLY PROMISED CHINA THAT IT WOULD REFRAIN FROM SELLING MAJOR WEAPONS SYSTEMS TO TAIWAN BUT PUBLIC OPINION IN TAIWAN IS A POTENT FORCE PUSHING THE TWO SIDES CLOSER TOGETHER PARTICULARLY PRESSURE FROM TAIWAN'S BUSINESS COMMUNITY 9401310110 940131 BANKING BILL IN NEW YORK FACES MIDNIGHT DEADLINE ALBANY NY AP INTEREST RATES ON CREDIT CARDS AND LOANS WOULD BE FREE OF CAPS PERMANENTLY UNDER A MEASURE BEFORE NEW YORK'S LEGISLATURE A BANKING DEREGULATION BILL NEEDS TO BE SIGNED INTO LAW BY MIDNIGHT TODAY IF NEW YORK IS TO CONTINUE THE SYSTEM THAT SINCE 1980 HAS KEPT A STATE CAP OFF INTEREST RATES NEGOTIATIONS BY THE STATE'S SENATE THE ASSEMBLY AND GOV MARIO CUOMO'S STAFF FAILED TO PRODUCE A BILL LAST JULY SETTING UP THE CURRENT DEADLINE PORTIONS OF THE MEASURE WERE STILL IN DISPUTE YESTERDAY BUT NEGOTIATORS WERE TRYING TO DRAFT A WIDERANGING BILL THAT WOULD CONTINUE TO GIVE BANKS THE ABILITY TO SET WHATEVER RATES THEY WANT FOR CREDIT CARDS AND MOST LOANS BANKS HAVE HAD THOSE POWERS SINCE 1980 BUT IN THE PAST THE LEGISLATURE HAS EXTENDED DEREGULATION ONLY TEMPORARILY NEGOTIATORS ALSO SEEK A BILL REQUIRING BANKS TO OFFER LOWCOST CHECKING ACCOUNTS TO PROVIDE POOR PEOPLE WITH NOFRILLS SERVICES CREATING A TOLLFREE STATE CONSUMERINFORMATION BANKING HOTLINE AND CLAMPING DOWN ON DISCRIMINATION BY BANKS BASED ON WHERE PEOPLE LIVE AMONG OTHER PROVISIONS 9401310109 940131 CHIPCOM TO REPORT PROFIT SURGED ON RISE IN QUARTERLY REVENUE SOUTHBOROUGH MASS BUOYED BY STRONG GROWTH IN COMPUTER NETWORKING CHIPCOM CORP WILL REPORT SHARPLY HIGHER FOURTHQUARTER NET ON A 60 REVENUE JUMP TO MORE THAN 43 MILLION SAYS ROB HELD PRESIDENT AND CHIEF EXECUTIVE THE MAKER OF COMPUTERNETWORK HUBS WILL EXCEED MOST ANALYSTS' QUARTERLY PROFIT ESTIMATES OF 4 MILLION OR 41 CENTS A SHARE ON 15 MORE SHARES MR HELD SAYS HE ALSO SAYS THE COMPANY IS POISED TO GROW VERY RAPIDLY AGAIN IN 1994 ADDING THAT HE IS CONFIDENT CHIPCOM CAN MEET ANALYSTS' ESTIMATES OF 215 MILLION OF REVENUE FOR THE YEAR IN THE 1992 FOURTH QUARTER CHIPCOM REPORTED NET OF 246 MILLION OR 27 CENTS A SHARE ON REVENUE OF 2777 MILLION THE LATEST RESULTS ESTABLISH CHIPCOM AMONG THE TOP THREE MAKERS OF NETWORK HUBS AFTER SYNOPTICS COMMUNICATIONS INC AND CABLETRON SYSTEMS CORP HUBS ARE INTELLIGENT SWITCHING SYSTEMS THAT DIRECT TRAFFIC IN COMPUTER NETWORKS MR HELD ESTIMATED THAT SALES THROUGH A NEW MARKETING AGREEMENT WITH INTERNATIONAL BUSINESS MACHINES CORP ROSE DURING THE QUARTER AND NOW COMPRISE ABOUT 25 OF OVERALL SALES SALES THROUGH DIGITAL EQUIPMENT CORP AN EARLIER CHIPCOM PARTNER HAVE FALLEN AS DIGITAL'S SALES FORCE HAS BEGUN PUSHING ITS INTERNALLY DEVELOPED NETWORKHUB PRODUCT LINE FOR THE YEAR MR HELD INDICATED CHIPCOM WILL POST NET OF MORE THAN 14 MILLION OR 143 A SHARE COMPARED WITH 1992 NET OF 845 MILLION OR 94 CENTS A SHARE ON FEWER SHARES 9401310108 940131 FOREIGN EXCHANGE SPOTLIGHT EXPECTED TO REMAIN ON THE YEN AS JAPAN READIES ITS STIMULUS PACKAGE BY JOHN P HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE ATTENTION OF THE FOREIGN EXCHANGE MARKETS WILL REMAIN FOCUSED ON THE YEN THIS WEEK AS WORD IS AWAITED ON A FISCAL STIMULUS PACKAGE EXPECTED TO BE UNVEILED IN JAPAN ON TUESDAY JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND LIBERAL DEMOCRATIC PARTY HEAD YOHEI KONO LAST WEEK REACHED A TENTATIVE COMPROMISE ON POLITICAL REFORM SETTING THE STAGE FOR MR HOSOKAWA TO UNVEIL A STIMULUS PACKAGE AND BUDGET PLANS FOR THE FISCAL YEAR THAT BEGINS APRIL 1 ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10992 YEN AND AT 17442 MARKS JAPAN'S TRADE SURPLUS HAS BEEN A CONTINUING SOURCE OF IRRITATION WITH MAJOR TRADE PARTNERS IN THE EUROPEAN UNION AND THE US IN DECEMBER IT GREW MORE THAN 15 WITH THE US PRESSURE FOR THE ENACTMENT OF A STIMULUS PACKAGE HAS BEEN STRONG AS IT IS WIDELY REGARDED AS A NECESSARY PRECONDITION TO PUTTING MORE MONEY INTO THE HANDS OF JAPANESE CONSUMERS SO THEY CAN BUY US GOODS AND OTHER EXPORTS THUS NARROWING THE TRADE DEFICIT MY EXPECTATION IS THAT THE DOLLAR WILL BE STABLE TO MODESTLY STRONGER PRINCIPALLY BECAUSE LONGTERM INTEREST RATES IN THE US WILL BACK UP SAID HUGH JOHNSON CHIEF ECONOMIST WITH FIRST ALBANY CORP PROFITTAKING CAN BE EXPECTED IN THE BOND MARKETS HE SAID HOWEVER MR JOHNSON SAID HE ALSO EXPECTS JAPANESE LONGTERM INTEREST RATES TO INCREASE FOLLOWING THE UNVEILING OF A STIMULUS PACKAGE THE REAL ISSUE IS CAPITAL FLOWS THE APPEAL OF YENDENOMINATED BONDS WILL IMPROVE AND THIS WILL ATTRACT MORE CAPITAL FLOWS TO JAPAN MR JOHNSON SAID THE TREND FOR THE DOLLAR AGAINST THE YEN WILL PROBABLY BE LOWER BUT NOT DRAMATICALLY LOWER DUE TO TROUBLED TRADE NEGOTIATIONS SAID KEVIN FLANAGAN ECONOMIST WITH DEAN WITTER REYNOLDS INC MR HOSOKAWA AND MR KONO REACHED A TENTATIVE 11THHOUR COMPROMISE FRIDAY ON KEY POLITICAL REFORMS COMING ONLY HOURS BEFORE A SATURDAY DEADLINE WHEN THE LEGISLATIVE SESSION ENDED THE AGREEMENT APPEARS TO HAVE STAVED OFF THE IMMEDIATE THREAT OF MR HOSOKAWA'S GOVERNMENT COLLAPSING MY GUESS IS THINGS ARE BEING SORTED OUT AND WE'RE HEADED TOWARD A STIMULUS PLAN TO HELP THE JAPANESE ECONOMY FIRST ALBANY'S MR JOHNSON SAID THE REAL ISSUE IS WHETHER LONGTERM INTEREST RATES WILL RISE MORE IN JAPAN THAN HERE MR JOHNSON SAID ABSENT A FISCAL STIMULUS PACKAGE NOW SEEN AS POSSIBLE IN LIGHT OF MR HOSOKAWA'S POLITICAL REFORM PROGRAM THERE WOULD HAVE BEEN CONSIDERABLE PRESSURE ON THE BANK OF JAPAN TO EASE MONETARY POLICY THIS COMPROMISE MEANS THEY CAN PROCEED WITH BUDGET AND STIMULUS TALKS SAID SANDY BATTEN SENIOR ECONOMIST WITH CITIBANK IT DEFERS FEARS THE US WILL PLAY HARDBALL IN TRADE TALKS THE TWO COUNTRIES ARE CONDUCTING FRAMEWORK TRADE NEGOTIATIONS AIMED AT HAVING THE JAPANESE OPEN THEIR MARKETS TO MORE EXPORTS HOWEVER DEAN WITTER REYNOLDS' MR FLANAGAN CAUTIONED AGAINST PLACING MUCH HOPE ON TRADE TALKS WE'RE LOOKING FOR MANAGED TARGETS AND THEY'RE COMPLETELY AGAINST THAT IDEA HE SAID RIGHT NOW WE'RE NOT SEEING MUCH PROGRESS AT ALL WITH LITTLE GROUND GAINED DURING THE TRADE TALKS AND BEFORE MR HOSOKAWA'S MEETING WITH PRESIDENT CLINTON ON FEB 11 THE FEELING IS THE ADMINISTRATION WILL USE A HIGHER YEN AS A BARGAINING CHIP MR FLANAGAN SAID THE YEN FALLOUT EFFECT THAT'S WHAT'S GOING TO BE THE MAIN THEME THIS WEEK SAID MARC HENDRICKS ECONOMIST AND RESEARCH DIRECTOR AT SWISS BANK CORP IN LONDON SOMETHING MAY BE SETTLED ON A STIMULUS PACKAGE HE ADDED MR HENDRICKS SAID STRONG US ECONOMIC DATA ALREADY HAVE BEEN FACTORED INTO THE MARKET SCHEDULED FOR RELEASE THIS WEEK IS THE CRUCIAL JANUARY NONFARM PAYROLLS REPORT AS WELL AS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S COMPOSITE INDEX ALSO SLATED FOR RELEASE ARE NEWHOME SALES FACTORY ORDERS PERSONAL INCOME AND CONSTRUCTION SPENDING THE MONTHLY AUTOMOBILE SALES FIGURE SET FOR RELEASE THURSDAY WILL TAKE ON MORE IMPORTANCE AS IT WILL BE THE FIRST TIME IN DECADES THE NUMBER HAS BEEN RELEASED WITHOUT 10DAY SALES PERIODS BEING REPORTED EARLIER EUROPEAN CURRENCIES ARE EXPECTED TO REMAIN IN NARROW TRADING RANGES THROUGHOUT THE WEEK ECONOMISTS SAY THERE WON'T BE MUCH CHANGE IN THE EUROPEAN CURRENCIES AGAINST THE DOLLAR PERHAPS THE DOLLAR WILL GAIN MORE STRENGTH MR FLANAGAN SAID THE US CURRENTLY IS POISED TO RAISE INTEREST RATES WHEREAS MOST CONTINENTAL COUNTRIES ARE SEEKING TO EASE MONETARY POLICY HE ADDED 9401310107 940131 GREEN POINT PARENT SEES SHARES SURGE IN CONTESTED IPO BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHARES OF GREEN POINT SAVINGS BANK'S PARENT JUMPED 27 IN AN INITIAL PUBLIC OFFERING AFTER A FEDERAL APPEALS COURT CLEARED THE WAY FOR ITS CONVERSION FROM MUTUAL TO STOCK OWNERSHIP SHARES OF THE NEW YORK THRIFT'S PARENT GP FINANCIAL CORP SURGED TO 19 FROM THE CONVERSION PRICE OF 15 IN NASDAQ STOCK MARKET TRADING FRIDAY TRADING VOLUME WAS A ROBUST 191 MILLION SHARES THE STOCK TRADES UNDER THE SYMBOL GNPT A FEDERAL JUDGE IN NEW YORK HAD GRANTED A TEMPORARY RESTRAINING ORDER REQUESTED BY CERTAIN DEPOSITORS WHO OPPOSED THE CONVERSION BUT GREEN POINT APPEALED THAT DECISION IN THE US COURT OF APPEALS FOR THE SECOND CIRCUIT WHICH OVERTURNED THE ORDER MELVYN I WEISS AN ATTORNEY WHO REPRESENTS DEPOSITORS IN THE CLASSACTION SUIT AGAINST GREEN POINT SAID HE WAS DISAPPOINTED WITH THE COURT'S DECISION HE SAID HE PLANS TO SEEK MONETARY DAMAGES OF ABOUT 200 MILLION FOR THE CLASS OF PLAINTIFFS CRITICS HAVE ARGUED THAT MANY DEPOSITORS TYPICALLY DON'T BUY SHARES IN STOCKCONVERSION DEALS WHILE MANAGEMENT AND TRUSTEES GET LARGE STOCK OPTIONS AND REAP BIG GAINS ON THEIR PURCHASES WHEN SHARE PRICES RISE IN GREEN POINT'S CASE FOR INSTANCE ONLY ABOUT 11000 OF ABOUT 250000 DEPOSITORS PARTICIPATED IN THE CONVERSION FOLLOWING SUCH CONCERNS THE FEDERAL GOVERNMENT RECENTLY PROPOSED GUIDELINES SEEKING TO PREVENT INSIDERS FROM MAKING EXCESSIVE PROFITS IN SUCH CONVERSIONS MOREOVER NEW YORK STATE BANKING REGULATORS IMPOSED A LIST OF STRINGENT REQUIREMENTS ON GREEN POINT BEFORE GIVING ITS GOAHEAD FOR THE CONVERSION UNDER ONE REQUIREMENT THE 65 BILLIONASSET BANK MUST DROP PLANS TO ISSUE STOCK GRANTS TO TRUSTEES AND OFFICERS A TOTAL OF 537 MILLION COMMON SHARES WERE SOLD FRIDAY GIVING THE DEAL A TOTAL VALUE OF 805 MILLION AND MAKING IT THE LARGEST THRIFT CONVERSION ON RECORD ACCORDING TO MARK COHEN A MANAGING DIRECTOR AT ADAMS COHEN SECURITIES IN GREAT NECK NY WHICH LED THE TRANSACTION THE CONVERSION GENERATED PROCEEDS OF 786 MILLION FOR GREEN POINT EARLIER REPUBLIC NEW YORK CORP HAD OFFERED TO ACQUIRE GREEN POINT IN A HOSTILE 250 MILLION BID BUT REPUBLIC WITHDREW ITS BID IN NOVEMBER AFTER REGULATORS DEEMED IT ILLEGAL 9401310106 940131 SPAIN'S ARGENTARIA HAD 15 INCREASE IN ANNUAL PROFIT SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S STATERUN BANKING GROUP ARGENTARIA CORP BANCARIA DE ESPANA SAID ITS CONSOLIDATED NET INCOME ROSE 15 IN 1993 TO 6484 BILLION PESETAS 4643 MILLION FROM 5617 BILLION PESETAS IN 1992 ARGENTARIA ALSO SAID IT PLANS TO PAY A TOTAL GROSS DIVIDEND ON ITS 1993 ACCOUNT OF 250 PESETAS WITHIN THE BANK'S FORECAST RANGE OF 230 PESETAS TO 260 PESETAS ARGENTARIA WILL PAY A GROSS FINAL DIVIDEND OF 135 PESETAS AFTER RECEIVING SHAREHOLDER APPROVAL AT THE ANNUAL GENERAL MEETING IT PAID A GROSS INTERIM DIVIDEND OF 115 PESETAS IN OCTOBER 1993 THE 1993 DIVIDEND IS THE FIRST PAID TO PRIVATE SHAREHOLDERS BY ARGENTARIA WHICH MADE ITS DEBUT ON THE MADRID STOCK MARKET LAST MAY AFTER THE GOVERNMENT PLACED A 25 STAKE AMONG INSTITUTIONAL INVESTORS INDIVIDUAL INVESTORS AND EMPLOYEES IN NOVEMBER THE BANK FLOATED AN ADDITIONAL 25 ARGENTARIA'S PROVISIONS FOR NONPERFORMING LOANS DECLINED 48 IN 1993 TO 9409 BILLION PESETAS FROM 9880 BILLION PESETAS IN 1992 THE BANK'S LOANLOSS COVERAGE RATE ROSE TO 76 FROM 67 IN 1992 ARGENTARIA SAID ITS OPERATING PROFIT IN 1993 ROSE 189 TO 14429 BILLION PESETAS FROM 12132 BILLION PESETAS IN 1992 OPERATING EXPENSES WERE CONTAINED IN 1993 DIPPING 05 TO 16607 BILLION PESETAS FROM 16690 BILLION PESETAS PERSONNEL EXPENSES EDGED UP 33 TO 10299 BILLION PESETAS FROM 9973 BILLION PESETAS WHILE GENERAL EXPENSES DECLINED 56 TO 4812 BILLION PESETAS FROM 5099 BILLION PESETAS THE GROUP'S NONINTEREST INCOME MOSTLY FROM COMMISSIONS AND FEES JUMPED 17 TO 5417 BILLION PESETAS FROM 4619 BILLION PESETAS THE BANK SAID STRENGTHENED FUND MANAGEMENT CREDITCARD SERVICES CAPITAL AND STOCK MARKETS INSURANCE AND FOREIGNCURRENCY ACTIVITY WERE BEHIND THE LARGE RISE IN NONINTEREST INCOME AVERAGE TOTAL ASSETS CLIMBED 79 TO 1025 TRILLION PESETAS 734 BILLION IN 1993 WHILE AVERAGE EQUITY INCREASED 89 TO 57223 BILLION PESETAS THE RETURN ON ASSETS IN 1993 STOOD AT 074 WHILE THE RETURN ON EQUITY WAS 1319 THE BANK'S LOAN PORTFOLIO REMAINED PRACTICALLY STABLE EASING 08 TO 620 TRILLION PESETAS BUT CUSTOMER FUNDS GREW 15 TO 510 TRILLION PESETAS INCLUDING 14 GROWTH IN DEPOSITS TO 390 TRILLION PESETAS THE BALANCE OF NONPERFORMING LOANS AT THE END OF 1993 WAS 66 LOWER THAN A YEAR EARLIER WHILE BAD DEBTS AS A PERCENTAGE OF TOTAL LOANS DECLINED TO 66 FROM 69 9401310105 940131 EXPORT CONTRACTS AT 19 JAPANESE FIRMS FELL 86 IN DECEMBER SPECIAL TO THE WALL STREET JOURNAL TOKYO EXPORT CONTRACTS SIGNED BY 19 MAJOR JAPANESE TRADING HOUSES IN DECEMBER WERE DOWN 86 FROM A YEAR EARLIER TO 8899 BILLION YEN 819 BILLION THE JAPAN FOREIGN TRADE COUNCIL SAID IMPORT CONTRACTS WERE DOWN 195 TO 9618 BILLION YEN THE GROUP NOTED THAT TOTAL EXPORT CONTRACTS DECLINED ON AN ANNUAL BASIS FOR THE SECOND STRAIGHT MONTH DESPITE SHARP INCREASES IN EXPORTS OF PHARMACEUTICAL PRODUCTS AND MISCELLANEOUS MACHINERY PHARMACEUTICAL EXPORTS TO THE US WESTERN EUROPE AND CHINA WERE UP SHARPLY BUT THE GROUP SAID EXPORTS OF METALS AND TEXTILES WERE SHARPLY LOWER STEEL EXPORTS PARTICULARLY TO CHINA AND WESTERN EUROPE WERE NOTABLY LOWER IT SAID MEANWHILE IMPORTS OF FUEL PRODUCTS AND METALS FELL BRINGING IMPORT CONTRACTS LOWER FOR THE THIRD STRAIGHT MONTH THE IMPORTS OF FUEL PRODUCTS WERE KNOCKED BACK BY LOWER CRUDE OIL PRICES AND BY DECLINING IMPORTS OF LIQUEFIED NATURAL GAS PRODUCTS THE GROUP SAID THE TRADE COUNCIL ALSO RELEASED DATA ON TRADING CONTRACTS SIGNED BY JAPANESE TRADING HOUSES FOR ALL OF 1993 EXPORT CONTRACTS CONCLUDED DURING THE YEAR DROPPED 86 TO 13020 TRILLION YEN THE THIRD STRAIGHT YEAR THEY DECLINED THE FIGURE REPRESENTED THE LOWEST LEVEL FOR A FULL YEAR SINCE 1979 WHEN EXPORT CONTRACTS TOTALED 12019 TRILLION YEN EXPORTS OF MOST MAJOR PRODUCTS WERE DOWN WITH DROPS IN MACHINERY EXPORTS ACCOUNTING FOR MUCH OF THE OVERALL DECLINE ALTHOUGH LUMBER IMPORTS ROSE IN THE YEAR LOWER FUEL AND METALS IMPORTS CONTRIBUTED TO THE OVERALL DECLINE THE GROUP SAID 9401310104 940131 SAUDIS ACHIEVE RESTRUCTURING OF 92 BILLION FIVE US DEFENSE CONCERNS ARE DUE PAYMENTS WAY CLEARED FOR AIRLINER JOB BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL SAUDI ARABIA AGREED ON A PLAN TO RESTRUCTURE 92 BILLION IN PAYMENTS DUE OVER THE NEXT TWO YEARS TO FIVE MAJOR US DEFENSE CONTRACTORS THE SAUDI AMBASSADOR TO THE US SAID THE AGREEMENT IS ESPECIALLY SIGNIFICANT BECAUSE IT CLEARS THE WAY FOR A BIG SAUDI PURCHASE OF COMMERCIAL AIRCRAFT THE SAUDIS ARE NOW EXPECTED WITHIN A FEW WEEKS TO PLACE ORDERS FOR ABOUT 6 BILLION OF CIVILIAN AIRLINERS FROM BOEING CO AND MCDONNELL DOUGLAS CORP WHILE THE RESTRUCTURING WASN'T EXPRESSLY LINKED TO THE AIRLINER PURCHASE ANYTHING OUT OF THE WAY MAKES IT EASIER TO GO ON TO THE NEXT DECISION SAID A PERSON FAMILIAR WITH BOTH NEGOTIATIONS PRINCE BANDAR BIN SULTAN SAID THAT THE RESTRUCTURING AGREEMENT WAS SIGNED SATURDAY BY THE SAUDI GOVERNMENT THE US DEFENSE DEPARTMENT AND REPRESENTATIVES OF MCDONNELL DOUGLAS GENERAL DYNAMICS CORP FMC CORP RAYTHEON CO AND THE HUGHES AIRCRAFT UNIT OF GENERAL MOTORS CORP THAT AGREEMENT REWORKS THE SINGLE LARGEST SAUDI ARMS PURCHASE THAT OF 72 STATEOFTHEART F15 FIGHTER JETS FROM MCDONNELL DOUGLAS FOR A TOTAL PRICE OF 9 BILLION OVER SEVERAL YEARS AND REFINANCES MUCH OF THE OTHER SAUDI ARMS PURCHASES PLANNED OVER THE NEXT TWO YEARS WE HAVE AN AGREEMENT WE'VE ALL SIGNED IT AND WE'RE HAPPY WITH IT PRINCE BANDAR SAID IN A TELEPHONE INTERVIEW FROM RIYADH YESTERDAY INSTEAD OF TAKING DELIVERY OF TWO F15S A MONTH STARTING SOMETIME NEXT YEAR AS HAD BEEN PLANNED THE SAUDIS NOW WILL TAKE ONLY ONE BUT MCDONNELL DOUGLAS WON'T SUFFER FROM THAT NEW SCHEDULE BECAUSE THE OTHER F15 IT PRODUCES MONTHLY WILL BE BOUGHT BY ISRAEL WHICH JUST LAST WEEK AGREED TO BUY 20 F15S FOR 2 BILLION THEY'LL BE MAKING TWO AIRCRAFT A MONTH ONE FOR US ONE FOR THEM SAID A SAUDI CLOSE TO THE NEGOTIATIONS IF THE SAUDI CASH POSITION WHICH HAS BEEN HURT BY LOW OIL PRICES IMPROVES LATER THIS DECADE THEN THE COUNTRY MIGHT GO BACK TO BUYING TWO F15S A MONTH THIS PERSON ADDED THE RESTRUCTURING OF THE FINANCING IS ESSENTIALLY AS EXPECTED THE SAUDIS WILL CUT BACK THEIR TOTAL CASH PAYMENTS TO ALL FIVE COMPANIES TO 15 BILLION ANNUALLY OVER THE NEXT TWO YEARS THE REMAINDER ABOUT 6 BILLION WILL BE COVERED BY LOANS GUARANTEED BY THE SAUDI GOVERNMENT WHICH ALSO WILL PAY INTEREST ON THE LOANS BUT IN A DIFFERENT APPROACH THE LOANS WON'T BE TAKEN OUT BY THE COMPANIES INSTEAD THE AGREEMENT CALLS FOR THEM TO FORM A NEW CORPORATION THAT WILL BE THE BORROWER THROUGH THIS FINANCING METHOD THE DEBT WON'T APPEAR EITHER ON SAUDI BOOKS OR ON THE BALANCE SHEETS OF THE COMPANIES THE IDEA BEHIND THE RESTRUCTURING IS TO HAVE THE COMPANIES TAKE AS MUCH IN LOANS AS NEEDED TO MAINTAIN MINIMUM PRODUCTION LEVELS REQUIRED TO AVOID LAYOFFS AND FIANNCIAL DISRUPTION THE PURCHASE OF COMMERCIAL AIRCRAFT WON'T IMMEDIATELY INCREASE SAUDI CASH OUTLAYS BECAUSE THOSE SALES ARE EXPECTED TO BE FINANCED BY THE US EXPORTIMPORT BANK 9401310103 940105 LETTER FROM THE PUBLISHER A REPORT TO THE WALL STREET JOURNAL'S READERS THIS PROGRESS REPORT CARRIES FORWARD A CUSTOM BEGUN 17 YEARS AGO IT REFLECTS OUR BELIEF THAT PUBLISHING A NEWSPAPER IS A PUBLIC TRUST FOR WHICH WE ARE ACCOUNTABLE FIRST OF ALL TO YOU OUR READERS TO OUR READERS BY ANY MEASURE 1993 WAS A GOOD YEAR FOR THIS NEWSPAPER FROM STORIES THAT BROKE NEWS TO EDITORIALS THAT SHAPED NATIONAL AGENDAS FROM EXPANDED READERSHIP TO INCREASED ADVERTISING FROM ENHANCED NEWS CONTENT TO NEW VENTURES WE LOOK BACK ON 1993 WITH PLEASURE AND PRIDE THIS PROGRESS TOOK PLACE IN AN UNCERTAIN ECONOMIC ENVIRONMENT THAT CONTINUES TO CHALLENGE US ALL WE HOPE OUR SUCCESS PROVES A LEADING INDICATOR FOR 1994 PORTENDING PROGRESS AND PROSPERITY FOR ECONOMIES AND SOCIETIES OUR OTHER HOPE FOR 1994 IS TO PROVIDE THE NEWS AND INFORMATION YOU NEED TO MANAGE YOUR COMPANIES CAREERS INVESTMENTS AND DAILY LIVES IN RECENT YEARS THIS LETTER HAS FOCUSED ON PERVASIVE PROBLEMS OF THE PRESS FROM PACK JOURNALISM TO EXCESSIVE NEGATIVISM AND ALSO ON THE VALUES AND STANDARDS WE BELIEVE SET THIS NEWSPAPER APART FROM THE MANY MEDIA VOICES COMPETING FOR YOUR TIME AND ATTENTION THOSE WILL BE RECURRING THEMES BECAUSE THE QUALITIES THAT DISTINGUISH THIS NEWSPAPER ITS COMMITMENT TO ACCURACY FAIRNESS AND INDEPENDENCE DEMAND REDEDICATION YEAR AFTER YEAR THIS YEAR HOWEVER I WANT TO FOCUS ON PEOPLE MY COLLEAGUES IN WIDELY DIVERSE JOURNAL JOBS WHO REPORT ANALYZE COMMENT EDIT COMPOSE PRINT SELL AND DISTRIBUTE THIS NEWSPAPER AND SERVE ITS CUSTOMERS THE JOURNAL'S PRIMARY ASSETS AREN'T WAREHOUSES WITH NEWSPRINT AND HIGHSPEED PRESSES NOT SATELLITE TRANSPONDERS AND FIBEROPTIC NETWORKS RATHER OUR ULTIMATE ASSETS ARE THE CREATIVE TALENT AND ENTERPRISE OF MORE THAN 2500 COLLEAGUES THE JOURNAL'S REPUTATION THAT THEY PRESERVE AND ENHANCE AND THE RESULTING TRUST YOU REPOSE IN THEIR WORK SOME OF THESE COLLEAGUES YOU KNOW FROM BYLINES ON THE PAGES OF THE PAPER MANY OTHERS ARE MORE ANONYMOUS BUT NO LESS IMPORTANT IN SERVING NEARLY TWO MILLION SUBSCRIBERS AND NEWSSTAND BUYERS AROUND THE WORLD EACH BUSINESS DAY SO LET ME INTRODUCE YOU TO A SAMPLING OF THEM PAUL INGRASSIA AND JOE WHITE ARE TWO OF THE MANY JOURNAL REPORTERS WHO COVERED INDUSTRY BEATS PROVIDING READERS WITH SPOT NEWS COVERAGE OF CORPORATE DEVELOPMENTS AND FEATURES THAT AMASS AND INTERPRET FACTS TO FORECAST TRENDS PAUL AND JOE CAPPED 1993 BY WINNING THE PULITZER PRIZE FOR BEAT REPORTING FOR THEIR COVERAGE OF GENERAL MOTORS AND THE AUTO INDUSTRY SENIOR EDITOR LAURA LANDRO DIRECTS A TEAM OF 14 REPORTERS COVERING THE MARKETING MEDIA AND ENTERTAINMENT INDUSTRIES ALL MUCH IN THE NEWS DURING A YEAR WHEN TERMS LIKE INTERACTIVE AND MULTIMEDIA BECAME BUSINESS BUZZWORDS AND MEDIA MERGERS OFTEN DOMINATED THE JOURNAL'S PAGES LAURA AND HER COLLEAGUES ANTICIPATED MAJOR MOVES AND ANALYZED HOW INDUSTRY CHANGES WILL AFFECT CONSUMERS AS WELL AS COMPANIES MOST READERS ALSO ARE INVESTORS STAFF REPORTER JOHN DORFMAN HAS CREATED SOME OF THE PAPER'S MOST POPULAR INVESTMENT FEATURES INCLUDING THE DARTBOARD WHICH MATCHES THE STOCKPICKING PROWESS OF EXPERTS AGAINST STOCKS SELECTED BY THE RANDOM TOSS OF A DART THE PROFESSIONALS ARE NARROWLY AHEAD IN 1993 JOHN DESIGNED THE FIRST JOURNAL ALLSTAR ANALYST LIST WHICH RANKS ANALYSTS BASED ON QUANTITATIVE MEASUREMENTS OF THEIR ACCURACY IN PICKING STOCKS AND FORECASTING EARNINGS ANOTHER REPORT THAT OFFERED INVESTORS NEWS THEY COULD USE WAS THE GLOBAL JOURNAL'S DECEMBER SECTION ON INVESTING IN CHINA EDITED BY JOHN BUSSEY AND JIM MCGREGOR AND INCLUDING ARTICLES FROM 20 JOURNAL REPORTERS THE SECTION LAID OUT THE EXTRAORDINARY OPPORTUNITIES AND POTENTIAL PITFALLS OF INVESTING IN THE WORLD'S FASTESTGROWING ECONOMY THE JOURNAL ALSO RECOGNIZES THAT ECONOMIES ARE COMPOSED OF PEOPLE JOURNAL REPORTER TONY HORWITZ LAST FALL FOCUSED A FRONTPAGE FEATURE ON BRIAN DEYO A FULLTIME WORKER IN A VERMONT HOCKEYSTICK FACTORY WHOSE WEEKLY EARNINGS OF 18840 FREQUENTLY COULDN'T COVER RENT UTILITIES AND GROCERIES FOR HIS FAMILY TONY RECOUNTED HOW MR DEYO HUNTS BEAR FOR FOOD NOT SPORT I'M PROUD TO BE A WORKING MAN SAID MR DEYO I ONLY WISH I MADE A LIVING HUNDREDS OF JOURNAL READERS RESPONDED BY DONATING MONEY FOOD AND OTHER AID TO MR DEYO AND HIS NEIGHBORS A SAN ANTONIO LAW FIRM SENT A TRUCKLOAD OF CHILDREN'S CLOTHING A WALL STREET BROKERAGE HOUSE TOOK UP A COLLECTION AND THE OWNER OF A VERMONT MAPLESUGAR PLANT GAVE ALL HIS OWN EMPLOYEES A 6 RAISE THIS KIND OF RESPONSE IS CHARACTERISTIC OF JOURNAL READERS JOURNAL REPORTERS RANGED FAR AFIELD TO COVER WORLD EVENTS AND THEIR EFFECT ON PEOPLE PERHAPS THE MOST REMARKABLE SUCH TRIP TOOK MIDEAST REPORTER PETER WALDMAN FROM THE SLUMS OF CAIRO WHERE HE FIRST HEARD OF A CHARISMATIC EGYPTIAN CLERIC TO JERSEY CITY AND BROOKLYN WHERE HE INTERVIEWED SHEIK OMAR ABDELRAHMAN SEVEN WEEKS BEFORE HIS FOLLOWERS WERE CHARGED WITH BOMBING MANHATTAN'S WORLD TRADE CENTER IN A REMARKABLY PRESCIENT STORY PETER WROTE THAT MILITANT MUSLIMS WERE BRINGING THE VIOLENT STRUGGLE AGAINST THE ENEMIES OF ISLAM INTO THE BELLY OF THE GREAT SATAN' ITSELF MUCH ALSO WAS GOING RIGHT WITH THE WORLD IN 1993 INCLUDING THE SPREAD OF POLITICAL AND ECONOMIC FREEDOM TO LONGREPRESSED REGIONS AT THE WALL STREET JOURNAL EUROPE PUBLISHED IN BRUSSELS FORMER FOREIGN CORRESPONDENT FRED KEMPE BECAME MANAGING EDITOR AND CREATED A NEW PUBLICATION FOR THE EMERGING MARKETS OF COUNTRIES IN EASTERN EUROPE THAT HE ONCE COVERED AS SOVIET SATELLITES THE NEW CENTRAL EUROPEAN ECONOMIC REVIEW IS NOW PUBLISHED QUARTERLY IN THE JOURNAL EUROPE AND ALSO SOLD ON NEWSSTANDS FROM BUDAPEST TO BUCHAREST IT'S ONE OF SEVERAL JOURNAL OFFSPRING BORN LAST YEAR INCLUDING HONG KONG WEEK A REGULAR SECTION IN THE ASIAN WALL STREET JOURNAL AND TEXAS JOURNAL A SPECIAL WEEKLY SECTION FOR THE JOURNAL'S 130000 TEXAS SUBSCRIBERS THESE JOIN OTHER RECENT PROGENY LIKE SMARTMONEY THE NEW MONTHLY MAGAZINE OF PERSONAL FINANCE PUBLISHED BY THE JOURNAL IN PARTNERSHIP WITH HEARST CORP AND THE JOURNAL CLASSROOM EDITION WHICH EACH MONTH REACHES NEARLY 100000 HIGHSCHOOL STUDENTS ACROSS AMERICA IT IS THE CREATION OF MELINDA GRENIER A FORMER SCHOOLTEACHER AND JOURNAL REPORTER WHO HAD THE DREAM OF MAKING ECONOMICS AND BUSINESS ACCESSIBLE AND RELEVANT TO HIGHSCHOOL STUDENTS MANY JOURNAL EDITORS LABOR BEHIND THE SCENES AMONG THEM ASSISTANT MANAGING EDITOR DAN HINSON AND MARKETS EDITOR JOHN PRESTBO WITH 65 YEARS OF JOURNAL EXPERIENCE BETWEEN THEM THEY SHARE THE TASK OF DESIGNING REFINING AND UPDATING THE MYRIAD MARKET STATISTICS JOURNAL READERS MONITOR EACH MORNING IN 1993 THEY ADDED TWO NEW FEATURES ENHANCED MUTUAL FUND TABLES PROVIDING UNPRECEDENTED DETAIL ON THE PERFORMANCE OF ABOUT 3500 MUTUAL FUNDS AND THE DOW JONES WORLD STOCK INDEX THAT TRACKS STOCKS AND INDUSTRY GROUPS ON 24 WORLD MARKETS SCORES OF JOURNAL COPY EDITORS COPY READERS PROOFREADERS AND NEWS PRODUCTION PEOPLE ARE INSTRUMENTAL IN SELECTING PRIORITIZING EDITING AND TRANSMITTING NEWS TO OUR COMPOSING ROOMS WITH MAXIMUM SPEED AND QUALITY IN THE FINAL MINUTES BEFORE PRESSES ROLL THESE PRESSURES FALL ON PEOPLE LIKE LARISSA PICKENS AT THE DALLAS PRODUCTION PLANT WHOSE DUTIES INCLUDE FINAL PROOFREADING MAKING CORRECTIONS COMPILING THE DAILY INDEX TO BUSINESS AND SUPERVISING FINAL PAGE MAKEUP IN A NEWSPAPER WHERE ONE WRONG NUMBER CAN UPSET LITERALLY MILLIONS OF READERS LARISSA'S ROLE IS VITAL ANOTHER KIND OF QUALITY CONTROL IS PROVIDED BY PAUL MARTIN AN ASSISTANT MANAGING EDITOR WHOSE DUTIES INCLUDE CRITIQUING EACH DAY'S JOURNAL FOR SUBSTANTIVE AND STYLISTIC MISTAKES ERRORS OF FACT AND FAIRNESS ARE CORRECTED DAILY IN CORRECTIONS & AMPLIFICATIONS ON PAGE 2 PAUL ALSO HELPS TO EDUCATE JOURNAL STAFFERS WITH AN INTERNAL NEWSLETTER THAT WAGES PARTICULAR WAR ON JARGON FOR INSTANCE PAUL RECENTLY SPOTTED THE TERM CAREGIVER IN A FRONTPAGE STORY ABOUT NANNIES AND WROTE A PROBLEM WITH CAREGIVER' IS THAT NO ONE WHO USES THE SERVICES OF ONE CALLS HER OR HIM BY THAT TERM WILL THE RECIPIENTS OF THE CARE ULTIMATELY BE CALLED CARETAKERS THE JOURNAL'S OPINION PAGES EDITORIAL OPED AND LEISURE & ARTS OPERATE INDEPENDENTLY THIS IS APPROPRIATE GIVEN THEIR DIFFERENT FUNCTIONS NEWS PAGES COVER EVENTS AS FACTUALLY AND FAIRLY AS POSSIBLE THE OPINION PAGES EXIST EXPRESSLY TO VOICE VIEWS THAT SPRING FROM A JOURNAL PHILOSOPHY THAT CHAMPIONS FREE PEOPLE AND FREE MARKETS JOURNAL EDITORIAL WRITERS ARTICULATE THIS PHILOSOPHY WITH GUTS AND GUSTO GENERATING CONTROVERSY PROVOKING DEBATE AND FREQUENTLY SHAPING EVENTS LAST YEAR THEY CRUSADED FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT INVEIGHED AGAINST POLITICAL CORRECTNESS ON COLLEGE CAMPUSES AND CALLED FOR FURTHER INVESTIGATION OF EVENTS SURROUNDING THE SUICIDE OF WHITE HOUSE AIDE VINCENT FOSTER JOHN FUND A YOUNG EDITORIAL WRITER INFLUENCED EVENTS WITH A SERIES OF EDITORIALS ON DISCHARGE PETITIONS AN ARCANE SET OF CONGRESSIONAL RULES THAT ALLOWED LEGISLATORS TO MISLEAD CONSTITUENTS BY POSTURING IN FAVOR OF BILLS WHILE SECRETLY VOTING TO KEEP THE SAME BILLS FROM REACHING RECORDED FLOOR VOTES HIS EDITORIALS SPARKED A HOUSE REVOLUTION THAT ENDED THIS FARCE ON A BROADER LEVEL DEPUTY EDITOR DAN HENNINGER'S LANDMARK EDITORIAL NO GUARDRAILS DISSECTED AN AMERICAN SOCIETY CAREENING OFF ITS RAILS BY REPEATEDLY LOWERING BARRIERS OF ACCEPTABLE POLITICAL AND PERSONAL CONDUCT DAN ARGUED THAT HAVING LOWERED THESE GUARDRAILS TO DEFINE ILLEGALITY AS CIVIL DISOBEDIENCE AND IMMORALITY AS PERSONAL PREFERENCE AMERICA'S ELITES SHOULDN'T BE SURPRISED TO SEE SOCIETY'S MORE VULNERABLE MEMBERS FLOATING LIKE FLOTSAM THROUGH THE COUNTRY'S HOSPITALS AND STREETS THE EDITORIAL PROMPTED WIDESPREAD PUBLIC DEBATE AND DERISIVE DENUNCIATION FROM POLITICALLY CORRECT MEDIA EDITORIAL FEATURES EDITOR AMITY SHLAES AND FOUR COLLEAGUES IN THE PAST YEAR CONSIDERED FOR PUBLICATION MORE THAN 10000 ARTICLES BY OUTSIDE CONTRIBUTORS SOME WERE COMMISSIONED BUT MOST ARRIVED UNSOLICITED FROM JOURNAL READERS THOSE WE PUBLISHED INCLUDED ARTICLES BY THREE FORMER PRESIDENTS BUT PERHAPS THE MOST IMPORTANT ARTICLE WAS TITLED THE COMING WHITE UNDERCLASS BY CHARLES MURRAY A SOCIAL SCIENTIST IT CHALLENGED THE ENTIRE WELFARE CONCEPT BY NOTING THE KEY ROLES OF TEENAGE PREGNANCY AND ILLEGITIMACY AND IN DOING SO SHIFTED THE CENTER OF NATIONAL DEBATE AMONG THE MOST IMPORTANT COLUMNS ON OUR OPINION PAGES ARE THE ONES DEVOTED TO YOUR VIEWS LETTERS TO THE EDITOR THESE COLUMNS ARE OVERSEEN BY AN UNSUNG HERO NAMED NED CRABB WHO RECEIVES AND READS MORE THAN 100000 LETTERS A YEAR THE LETTERS ARRIVE FROM CEOS AND SECRETARIES AMBASSADORS AND SCHOOLTEACHERS ADMIRALS AND HOMEMAKERS FROM MEN AND WOMEN AS DISPARATE AS ALGER HISS AND FOLK SINGER PETER YARROW NOBEL ECONOMIST MILTON FRIEDMAN AND A MAN NAMED PETER BLOCK WHO WROTE OF BEING MAULED BY A GRIZZLY BEAR THE JOURNAL'S LEISURE & ARTS PAGE LAST FALL CELEBRATED ITS 10TH ANNIVERSARY AS A DAILY FEATURE ITS MOST FREQUENT CONTRIBUTOR IS THE JOURNAL'S ONLY FULLTIME SPORTS WRITER FRED KLEIN ALONG WITH COVERING THE YEAR'S MAJOR MOMENTS IN SPORTS FROM A HEARTSTOPPING WORLD SERIES TO MICHAEL JORDAN'S RETIREMENT FRED CONTINUED TO DEMONSTRATE HIS SOFT SPOT FOR ORDINARY ATHLETES HIS PICKS FOR OUTSTANDING SPORTS ACHIEVEMENT WERE THOSE OF THE NEW RECORDSETTER FOR PUSHUPS AND A MAN WHO WON A MILLION DOLLARS BY SINKING A BASKET FROM THE FAR END OF A COURT THE DAILY CONTENT OF THE JOURNAL ALSO INCLUDES ADVERTISING WHETHER ANNOUNCING CORPORATE ACHIEVEMENTS OR NEW PRODUCTS ALERTING READERS TO INVESTMENT OPPORTUNITIES OR EXECUTIVE JOB OPENINGS JOURNAL ADVERTISING OFFERS GENUINE BENEFITS TO READERS AND THUS THEY RESPOND OUR ADVERTISERS RANGE FROM THE WORLD'S LARGEST COMPANIES AND FINANCIAL INSTITUTIONS TO SMALL ENTERPRISES LIKE LANE GUEST RANCH A ROCKY MOUNTAIN RESORT AND TOURING AMERICA GUILD A DESIGNER OF CHINA MUGS BOTH CREDIT THE JOURNAL WITH BUILDING THEIR BUSINESSES JOURNAL SALESPEOPLE WORK CLOSELY WITH CLIENTS AND AGENCIES TO DEVELOP INNOVATIVE AND EFFECTIVE ADVERTISING SALES REPRESENTATIVE STEVE WERFEL COLLABORATED WITH AT&T AND ITS AGENCY YOUNG & RUBICAM ON A UNIQUE CAMPAIGN FOR AT&T FAX SERVICES THE ADVERTISEMENTS FEATURE HEADLINES OF 20 STORIES FROM THE JOURNAL'S EUROPEAN AND ASIAN EDITIONS AND OFFER FULL TEXT BY FAX INDICATIVE OF JOURNAL READER RESPONSIVENESS 20 SUCH ADS LAST YEAR PROMPTED MORE THAN 40000 REQUESTS FOR MORE THAN 90000 ARTICLES CUSTOMER SERVICE IS AN ESSENTIAL COMPONENT OF EVERY SALES JOB ERIC JENSEN FOR MORE THAN TWO DECADES HAS BEEN RESPONSIBLE FOR MANY OF THE JOURNAL'S MOST IMPORTANT FINANCIAL ACCOUNTS ONE OF THESE CALLED HIM ON A SUNDAY SEEKING TO GET A FULLPAGE LETTER TO SHAREHOLDERS IN MONDAY'S JOURNAL ERIC PERSONALLY PICKED UP THE MATERIAL AT A NEW YORK PRINT SHOP LATE THAT AFTERNOON DROVE FOUR HOURS TO THE JOURNAL'S CHICOPEE MASS COMPOSING ROOM AND GOT THE ADVERTISEMENT INTO LATE EDITIONS OF THE MONDAY PAPER PHYSICAL PRODUCTION OF THE PAPER IS THE JOB OF THE JOURNAL'S PRODUCTION DEPARTMENT WHICH STAFFS 18 PRINTING PLANTS ACROSS THE US AND OVERSEES ANOTHER SIX IN EUROPE AND ASIA LIKE MOST JOURNAL STAFFERS PRODUCTION PEOPLE WORK UNDER TOUGH TIME CONSTRAINTS BALANCING THE NEED TO PROVIDE YOU THE LATEST NEWS WITH THE NEED TO PROVIDE THE EARLIEST POSSIBLE DELIVERY FORCES OF NATURE SUCH AS LAST YEAR'S MISSISSIPPI RIVER FLOODS SOMETIMES COMPOUND THESE PRESSURES REGARDLESS FOREMAN JEFF CLINGAN AND HIS CREW AT THE JOURNAL'S DES MOINES IOWA PLANT KEPT PRINTING THE JOURNAL EACH NIGHT AS FLOOD WATERS ROSE AND FOR TWO WEEKS ALSO PRINTED THE DES MOINES REGISTER WHOSE OWN PLANT WAS FLOODED THE JOURNAL'S FRONTLINE DEPARTMENTS IN TURN ARE BACKED BY TECHNICAL EXPERTS AND OTHER SUPPORT STAFFERS AROUND THE WORLD PEOPLE LIKE TERENCE HO AND JOHNNY HUNG IN HONG KONG AND WILLIE STALPAERT IN BRUSSELS WHO KEEP COMPUTER SYSTEMS RUNNING THROUGHOUT THE NIGHT OR TOM DEUTSCH AND HIS US COLLEAGUES WHO HELPED KEEP DOW JONES COMPUTERS ATOP THE WORLD TRADE CENTER OPERATING AFTER IT WAS BOMBED THE JOURNAL'S CIRCULATION TEAM IS RESPONSIBLE FOR MARKETING AND SELLING THE JOURNAL TO SUBSCRIBERS AND ENSURING THE PAPER'S AVAILABILITY AT MORE THAN 58000 RETAIL OUTLETS ACROSS AMERICA AND THOUSANDS MORE OVERSEAS THE DEPARTMENT'S MOST CRITICAL ROLE HOWEVER IS SERVING SUBSCRIBERS SOME 180 JOURNAL CUSTOMER SERVICE REPRESENTATIVES IN CHICOPEE HANDLED MORE THAN TWO MILLION TELEPHONE CALLS LAST YEAR AND ANOTHER HALF MILLION PIECES OF CORRESPONDENCE EVERY CALLER IS PROVIDED PERSONAL SERVICE SUBSCRIBERS SOMETIMES CALL WITH COMPLAINTS A MISLABELED SUBSCRIPTION OR AN ISSUE UNDELIVERED JOURNAL SUBSCRIBERS UNDERSTANDABLY ARE UPSET WITH ANY FLAW IN SERVICE AND CUSTOMER REPRESENTATIVES LIKE BAUKJE MCCRAY ARE ON THE FRONT LINES IN SOLVING SUCH PROBLEMS BAUKJE BEGAN A TELEPHONE RELATIONSHIP WITH AN IRATE TEXAS SUBSCRIBER SOLVED HIS PROBLEM AND CHECKED BACK SEVERAL TIMES TO MAKE SURE IT HADN'T RECURRED THE IMPRESSED SUBSCRIBER BECAME BAUKJE'S PHONE FRIEND AND EVEN OFFERED HER SON HELP GETTING A COLLEGE SCHOLARSHIP SOME SUBSCRIBER LETTERS SURPRISE EVEN VETERAN SERVICE REPRESENTATIVES SEVERAL MONTHS AGO A LETTER ARRIVED FROM ROBERT KOBBLER OF LENEXA KAN APOLOGIZING FOR FAILING TO RESPOND SOONER TO A SUBSCRIPTION SOLICITATION LETTER HE RECEIVED IN THE 1940S MR KOBBLER HAD PRESERVED THE LETTER AND SOUGHT TO TAKE UP THE OFFER WITH A CHECK FOR 18 THE ANNUAL SUBSCRIPTION PRICE PRIOR TO 1947 I REALIZE YOU MIGHT THINK I HAVE DELIBERATED TO AN EXCESSIVE DEGREE HE WROTE AND I WON'T BE TERRIBLY DISAPPOINTED IF YOU RENEGE THE LETTER REACHED THE DESK OF DAN AUSTIN THE JOURNAL'S VICE PRESIDENT CIRCULATION AND A FELLOW KANSAN WHO NOTED MR KOBBLER'S SUBSCRIPTION OFFER HAD NO TIME LIMIT AND THUS PERSONALLY PROCESSED IT JOURNAL SUBSCRIBERS AROUND THE WORLD CONSTITUTE A DIVERSE COMMUNITY THEY INCLUDE PRESIDENTS OF COUNTRIES AND COMPANIES FINANCIERS AND ENTREPRENEURS HOMEMAKERS AND COLLEGE STUDENTS PEOPLE FROM PEORIA TO PYONGYANG PRESIDENT BILL CLINTON IS A JOURNAL READER AND CITES ITS ARTICLES PUBLICLY AND PRIVATELY SO FOR EXAMPLE DOES CHINA'S ECONOMIC CZAR ZHU RONGJI JOURNAL SUBSCRIBERS RANGE IN AGE FROM L5YEAROLD MATT SETO WHO ALREADY HAS STARTED HIS OWN BROKERAGE COMPANY TO RALPH HON A RETIRED BUSINESS PROFESSOR IN MEMPHIS WHO RECENTLY RENEWED HIS SUBSCRIPTION FOR THE 66TH YEAR GETTING THE JOURNAL TO ITS SUBSCRIBERS IS THE JOB OF HUNDREDS OF JOURNAL COLLEAGUES AROUND THE WORLD IN THE US MORE THAN ONE MILLION JOURNALS A DAY ARE HANDDELIVERED BEFORE BREAKFAST BY CARRIERS OF OUR OWN NATIONAL DELIVERY SERVICE FOR INSTANCE TROY LEGARE A JOURNAL CARRIER FOR MORE THAN 15 YEARS DELIVERS TO SUBSCRIBERS IN NEW YORK CITY'S FULTON FISH MARKET THESE CUSTOMERS ARE CONSTANTLY ON THE MOVE IN THE EARLY MORNING HOURS SO MR LEGARE WHO KNOWS HIS PERIPATETIC PATRONS BY SIGHT TRACKS EACH TO PERSONALLY DELIVER THE JOURNAL AND THEN THERE IS CLAUDE CHASE AN 83YEAROLD JOURNAL CARRIER IN PHOENIX ARIZ WHO SLIPPED AND BROKE HIS NOSE LAST YEAR MAKING HIS ROUNDS AFTER A QUICK STOP AT A HOSPITAL EMERGENCY ROOM HE COMPLETED HIS DELIVERIES BEFORE RETURNING FOR FURTHER TREATMENT ALL OF THESE JOURNAL COLLEAGUES AND SEVERAL THOUSAND MORE AROUND THE WORLD JOIN ME IN THANKING YOU FOR YOUR SUPPORT OF THE JOURNAL AND IN WISHING YOU AND YOUR FAMILIES A PEACEFUL AND PROSPEROUS 1994 SEE RELATED LETTER LETTERS TO THE EDITOR IDEALS THEN AND NOW WSJ JAN 31 1994 9401050066 YY94 MM01 9401310102 940131 HEARD ON THE STREET NEWHALL LAND WITH VAST CALIFORNIA HOLDINGS GETS GOOD MARKS FROM SOME SAVVY INVESTORS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOOKING FOR A STOCK TO GIVE A CHILD OR GRANDCHILD CONSIDER NEWHALL LAND & FARMING A BIG CALIFORNIA REAL ESTATE DEVELOPER ITS NEARTERM PROSPECTS ARE CLOUDY BUT KNOWLEDGEABLE MONEY MANAGERS SAY IT HAS A REASONABLE CHANCE TO TRIPLE BY THE END OF THE DECADE CALIFORNIA HAS SUFFERED FROM A STUBBORN RECESSION AND REAL ESTATE HAS SLUMPED NATIONWIDE UNTIL RECENTLY SO NEWHALL HAS LABORED UNDER A DOUBLE WHAMMY BUT NEITHER CALIFORNIA NOR REAL ESTATE WILL STAY DEPRESSED FOREVER IF YOU BELIEVE CALIFORNIA IS GOING TO RECOVER THIS IS THE CONSUMMATE CALIFORNIA PLAY SAYS MARTIN COHEN A MONEY MANAGER WITH COHEN & STEERS IN NEW YORK NEWHALL OWNS MORE THAN 100000 ACRES OF LAND IN VARIOUS PARTS OF CALIFORNIA WHICH IT IS GRADUALLY TURNING INTO HOUSING DEVELOPMENTS SHOPPING MALLS AND OFFICE BUILDINGS MEANWHILE IT CONTINUES TO OPERATE RANCHES ON MUCH OF THE LAND ITS MOST IMPORTANT LOCATION IS VALENCIA 35 MILES NORTH OF DOWNTOWN LOS ANGELES WHERE IT HAS A PLANNED COMMUNITY A REGIONAL SHOPPING MALL AND ITS CORPORATE HEADQUARTERS THE EARTHQUAKE THAT RECENTLY ROCKED THE LOS ANGELES AREA COULD HURT SALES OF HOUSES AT VALENCIA THIS YEAR SINCE IT DAMAGED MAJOR ROADS CONNECTING VALENCIA TO LOS ANGELES BUT NEWHALL CHAIRMAN THOMAS L LEE SAYS THAT SO FAR NO PROSPECTIVE HOME BUYERS HAVE CANCELED PURCHASE PLANS THE COMPANY'S PROPERTIES WEREN'T DAMAGED SEVERELY THE MALL REOPENED WITHIN THREE DAYS AND IS SEEING LIGHT BUT IMPROVING TRAFFIC AT THIS POINT HE SAYS IT LOOKS AS IF NEWHALL WILL STILL BE ABLE TO MEET ITS GOAL TO GET FIVE OR SIX NEW HOUSING PROJECTS INTRODUCED THIS YEAR FEW BROKERAGE ANALYSTS FOLLOW NEWHALL WHICH IS STRUCTURED AS A MASTER LIMITED PARTNERSHIP AMONG THE FEW WITH ESTIMATES THE CONSENSUS CALLS FOR NEWHALL TO EARN 50 CENTS A UNIT IN 1994 SUCH PARTNERSHIPS HAVE UNITS RATHER THAN SHARES SOME HIGHLY REGARDED MONEY MANGERS HAVE INVESTED IN THE STOCK JOHN TEMPLETON'S FAMILY OF MUTUAL FUNDS OWNS MORE THAN A MILLION SHARES THE STEIN ROE SPECIAL FUND OWNS MORE THAN 750000 CHARLES ROYCE'S PENNSYLVANIA MUTUAL FUND IS ALSO A BIG HOLDER THESE INVESTORS ARE KNOWN FOR THEIR BARGAINHUNTING SKILL AT FIRST GLANCE THEIR PRESENCE IN NEWHALL SEEMS INCONGRUOUS BECAUSE NEWHALL STOCK LOOKS EXPENSIVE BY STANDARD MEASURES FOR EXAMPLE IT SELLS FOR 40 TIMES THE COMPANY'S PERSHARE EARNINGS FOR THE PAST FOUR QUARTERS BUT THE FACT NEWHALL HAS ANY EARNINGS AT ALL GIVEN THE RECENT ECONOMY OF CALIFORNIA IS HEROIC SAYS ONE BROKER WHO FOLLOWS THE STOCK NEWHALL'S APPEAL LIES IN ITS ASSETS BY THE COMPANY'S MOST RECENT APPRAISAL ITS PROPERTIES ARE WORTH A BIT MORE THAN 21 A SHARE OR 50 MORE THAN THE CURRENT STOCK PRICE AND EVEN NEWHALL'S DETRACTORS AGREE THAT THE COMPANY'S APPRAISALS OVER THE YEARS HAVE BEEN CONSERVATIVE DICK PETERSON COMANAGER OF STEIN ROE SPECIAL FUND SAYS THERE IS AN ELEMENT OF JUDGMENT IN VALUING REAL ESTATE SORT OF LIKE VALUING A REMBRANDT HIS GUESS THE COMPANY'S PROPERTIES ARE WORTH ABOUT 25 TO 30 A SHARE IN THE CURRENT CLIMATE AND MR PETERSON THINKS VALENCIA LOOKS LIKE A CROWN JEWEL FOR THE LONG TERM WHEN YOU DON'T HAVE TO DRIVE AROUND EARTHQUAKE DAMAGE THE SITE IS CONVENIENT TO LOS ANGELES HE SAYS GIVEN THE RISING CRIME AND CIVIL DISTURBANCE IN THE CITY HE THINKS QUITE A FEW LOS ANGELES RESIDENTS MAY WANT TO MOVE NORTH IN THE SHORT RUN UNFORTUNATELY THERE'S NO SPECIAL REASON TO EXPECT THE SHARES TO OUTPERFORM THE OVERALL MARKET JAMES SCHMITT AN ANALYST AT WEST COUNTRY FINANCIAL IN SOMIS CALIF SAYS HE WOULD AVOID THE STOCK UNTIL SUCH TIME AS THE CALIFORNIA REAL ESTATE MARKET LOOKS A LOT BETTER MR SCHMITT CONCEDES THAT CALIFORNIA'S ECONOMY SHOWED SOME MOVEMENT LATE LAST YEAR BUT HE REGARDS THAT AS A HICCUP NOT THE START OF A SOLID RECOVERY JEFF EVERETT AN ANALYST AND MONEY MANAGER WITH THE TEMPLETON ORGANIZATION SAYS WE SEE A LOT OF VALUE IN THEIR LAND AND THEY HAVE MADE GOOD PROGRESS IN DEVELOPING VALENCIA BUT HE ADDS WE'RE VERY DISAPPOINTED WITH MANAGEMENT FOR NOT GETTING PROFITS AND THE STOCK PRICE MOVING MORE BRISKLY MEANWHILE NEWHALL HAS ANOTHER ILLUSTRIOUS FAN PETER LYNCH THE INVESTMENT LEGEND WHO USED TO RUN THE FIDELITY MAGELLAN FUND HAD A KIND WORD FOR NEWHALL IN A RECENT ARTICLE HE WROTE FOR WORTH MAGAZINE NEWHALL WAS A SPECTACULAR STOCK FOR TWO DECADES MR LYNCH WROTE AND NOW IT CAN BE BOUGHT FOR HALF ITS 1989 HIGH PRICE YEAR ENDED DEC 31 1993 FOURTH QUARTER DEC 31 1993 AVERAGE DAILY TRADING VOLUME UNITS OUTSTANDING 9401310101 940110 LEISURE & ARTS TELEVISION TEEN AND TORIE KILLERS BY DOROTHY RABINOWITZ NBC'S HOMICIDE IS A POLICECRIME DRAMA THAT GLEAMS WITH POLISH AND LIFE AND TALENT NONE OF WHICH COULD SAVE LAST WEEK'S EPISODE FROM THE EFFECTS OF ITS SOCIALLY REDEEMING MENDACITY THE SPECIAL PROBLEM THE SHOW'S PRODUCERS FACED HERE RELATES TO THE FACT THAT THERE ARE NOW SOME SUBJECTS NOTABLY CRIME AND MURDER IN THE STREETS ABOUT WHICH IT IS NO LONGER POSSIBLE TO LIE WITH SUCCESS ON THURSDAY THE SHOW BEGAN A BRIEF RETURN RUN WITH AN EPISODE ABOUT A TOURIST ROBBED AND MURDERED ON THE STREETS OF BALTIMORE THE VICTIM KILLED BEFORE THE EYES OF HER CHILDREN AND HUSBAND IS WHITE WHILE THE KILLER AND HIS ACCOMPLICES ARE BLACK TEENAGERS WITH THE INTRODUCTION OF SUCH A STORY LINE AND ITS INEVITABLE RACIAL ELEMENT IT WAS CLEAR THAT PRODUCERS BARRY LEVINSON AND TOM FONTANA HAD WADED INTO DEEP WATERS THIS WAS OF COURSE NOT ENTIRELY ACCIDENTAL DEEP POLITICAL WATERS AND THE APPEARANCE OF RISKINESS BEING AS THEY ARE NOWADAYS ESSENTIAL ELEMENTS OF CRIMEANDCOP PROGRAMS THE GRIT IN ALL THOSE GRITTY POLICE DRAMAS NEVERTHELESS AND GRIT NOTWITHSTANDING IT BECAME OBVIOUS BEFORE THE MIDPOINT OF THIS EPISODE THAT THE PRODUCERS WERE GOING TO FIND A WAY TO GET THIS PROGRAM AND ITS SENSITIVE STORY LINE SETTLED ON SAFELY CORRECT IDEOLOGICAL SHORES HOW TO DO IT TO APPRECIATE THE DIMENSIONS OF THE TORTURED CREATIVITY REQUIRED FOR THE SOLUTION IT'S NECESSARY FIRST TO NOTE HOW MUCH PUNCTILIOUS EFFORT GOES INTO THIS SHOW AND OTHERS LIKE IT IN THE INTEREST OF AUTHENTICITY SO MUCH CARE SO MUCH STUDY OF NUANCE AND ACCENT ARE DEPLOYED IN ORDER TO GIVE ALL THE VARIOUS SOCIAL TYPES THE AURA AUDIENCES RECOGNIZE AS THE REAL AND THE TRUE EVERYONE GETS THE REALITY TREATMENT EXCEPT IN THIS EPISODE THE PERPETRATOR THE CREATIVE SOLUTION TO THE PRODUCERS' PROBLEM TURNED OUT TO BE SIMPLE ENOUGH YES THE TEENAGER IS GUILTY OF SHOOTING THE WOMAN AND DEVASTATING HER FAMILY BUT AS WE ALSO LEARN THIS KILLER IS SO TENDERHEARTED HE COULD NOT BEAR AS ONE LINE IN THE SCRIPT ACTUALLY INFORMS US THE DEATH OF A RABBIT NOT ONLY IS HE TENDERHEARTED BUT WE LEARN AT THE SHOW'S CONCLUSION THIS YOUTH TOOK CHARGE OF THE GUN ONLY IN ORDER TO MAKE SURE NO ONE ELSE IN THE GANG DID ANYTHING BAD WITH IT IN SHORT IT WAS OUT OF HIS VERY GOODNESS THAT HE ENDED UP KILLING THE WOMAN WHO LISTENING TO THIS WOULD NOT BE SEIZED BY TRANSPORTS OF COMPASSION FOR THE SCRIPTWRITERS OBLIGED TO COME UP WITH SUCH LINES AND WITH SUCH A SOLUTION TEN YEARS AGO SUCH FLIMFLAM ABOUT LIFE ON THE STREET AND ABOUT THE YOUNG OUT BLOWING PEOPLE AWAY ON THE STREET MIGHT HAVE PASSED WITHOUT RAISING AN EYEBROW NOT NOW NOT AFTER ALL THE COLDBLOODED EXECUTIONS/ROBBERIES IN HOUSINGPROJECT ELEVATORS AND BODEGAS AFTER ALL THE MURDERS OF UNRESISTING CAB DRIVERS AND FATHERS ON THEIR WAY HOME FROM WAITER'S JOBS OF TOURISTS AND EVERYONE WHO DIDN'T HAND JEWELRY OR JACKETS OVER FAST ENOUGH OR WHO DID AND WERE ANNIHILATED ANYWAY MASTERPIECE THEATRE'S MUCH ANTICIPATED CONTINUATION OF PRIME MINISTER URQUHART'S ADVENTURES IS QUITE A DIFFERENT DISH PACKED THOUGH IT IS WITH RIGHTMINDEDNESS TO PLAY THE KING A FOURPART SERIES ABOUT A MURDEROUSLY SCHEMING CONSERVATIVE PM AND THE SEQUEL TO LAST SEASON'S HOUSE OF CARDS BEGINS SUNDAY ON PBS 910 PM CHECK LOCAL LISTINGS AT THE END OF LAST YEAR'S FINAL EPISODE RECALL THE PM TOSSED HIS LOVER YOUNG INVESTIGATIVE REPORTER MATTIE STORIN OFF THE ROOF OF A GOVERNMENT BUILDING UNKNOWN TO URQUHART MATTIE'S SECRET TAPE RECORDING OF THE PM'S INCRIMINATING PRIOR COMMENTS TO SAY NOTHING OF THE RECORDING OF THE POOR WOMAN'S SCREAMS AS SHE IS HURLED TO HER DEATH HITS THE GROUND WITH HER AND IS PICKED UP BY PERSONS UNKNOWN URQUHART IAN RICHARDSON AND HIS STILL MORE HOMICIDALLY AMBITIOUS WIFE ELIZABETH DIANE FLETCHER HAVE A POTENT NEW ENEMY IN THIS SEQUEL NONE OTHER THAN THE NEWLY INSTALLED YOUNG MONARCH THE NEW KING MICHAEL KITCHEN DEAD SET AGAINST URQUHART'S HARDNOSED SOCIAL POLICIES MAKES LENGTHY SPEECHES ABOUT COMPASSION IMPLACABLY EARNEST THE KING WANTS TO GO OUT AND ABOUT ON THE STREETS AND GIVE INTERVIEWS ON TV ABOUT THE POLITICS OF CARING WHICH HAVE BEEN ABANDONED BY THE TORY LIKES OF URQUHART FOR WHICH READ THATCHERITES FOR A WHILE IT SEEMS POSSIBLE ONE CAN HOPE ANYWAY THAT THIS HUMORLESS CLOD OF A MONARCH IS MEANT TO BE TAKEN SATIRICALLY FOR A WHILE BUT NOT FOR LONG THE KING'S VIEWS AND MUCH ELSE IN THE SCRIPT ARE ALL MEANT TO UNDERSCORE THE MORAL DIFFERENCE BETWEEN CONSERVATIVE ROTTERS AND THE HIGHER HUMANITY OF THEIR OPPONENTS THERE ARE WE COME TO SEE EVEN TWO DIFFERENT MORALLY SPEAKING KINDS OF HOMOSEXUALS THOSE OF THE RIGHT AND THOSE OF THE HUMANISTPROGRESSIVE LEFT THE KING'S CLOSE FRIEND AND PRESS AIDE THE SENSITIVE PRINCIPLED AND MONOGAMOUS MYCROFT BELONGS TO THE LATTER CATEGORY THE VICIOUS CONSERVATIVE POLITICIAN AND ENEMY OF THE GOOD AND THE TRUE IS ON THE OTHER HAND THE KIND OF HOMOSEXUAL WHO GOES ABOUT CORRUPTING THE YOUNG IN WHAT SURELY RANKS AS ONE OF THE SCRIPT'S MOST IDIOTIC SCENES THE GOOD HOMOSEXUAL MYCROFT BREAKS DOWN AND TELLS HIS GORGEOUS LOVER HE WANTS TO BOLT SO ASHAMED IS HE OF DOING THE SAME THING SEXUALLY AS THE BAD CONSERVATIVE HOMOSEXUAL WHAT RICH SATIRE THIS WOULD ALL BE IF ONLY IT WERE NOT MEANT IN DEAD EARNEST STILL ALL THE POLITICAL TWADDLE CAN'T DIMINISH NOT BY MUCH ANYWAY THE CHARM OF THE SERIES WHICH IS LIKE ITS PREDECESSOR LIVELY AND CLEVER TO THE END THIS IS DUE MOSTLY TO MR RICHARDSON WHOSE MALIGNANTLY KNOWING SMILE IS MORE POTENT THAN ANY PIECE OF DIALOGUE ALTOGETHER MR RICHARDSON WHO MAY ALSO BE THE MOST CONVINCINGLY SEXUAL ACTOR OF ADVANCED YEARS AROUND AS URQUHART'S SCENES WITH THE NEW YOUNG THING IN HIS LIFE SHOW IS A STILL MORE HEROICALLY VILLAINOUS URQUHART THIS TIME AROUND THAN THE LAST SEE RELATED LETTER LETTERS TO THE EDITOR TRAP FOR URBAN YOUTH THEY CAN'T BACK DOWN WSJ JAN 31 1994 9401100132 YY94 MM01 9401310100 940131 INDUSTRY FOCUS BIOTECH FIRMS TRY TO BLOCK CLINTON PRICECONTROL PLAN INDUSTRY SAYS A NEGOTIATING BOARD WOULD DISCOURAGE CRITICAL INVESTMENTS BY MICHAEL WALDHOLZ AND UDAYAN GUPTA STAFF REPORTERS OF THE WALL STREET JOURNAL THE BIOTECHNOLOGY INDUSTRY HAS LAUNCHED AN AGGRESSIVE POLITICAL CRUSADE ARGUING THAT PRICE CONTROLS IN THE CLINTON HEALTH PLAN WILL SEVERELY WOUND BUSINESSES' ABILITY TO ATTRACT CRITICALLY NEEDED INVESTMENTS COMPANY OFFICIALS WANT TO BLOCK A PROPOSAL CREATING A FEDERAL BOARD THAT WOULD HAGGLE WITH COMPANIES OVER PRICES CHARGED FOR NEWLY CREATED PRESCRIPTION MEDICINES THE COMPANIES WORRY THAT THE BOARD WILL WIND UP DICTATING PRICES SHARPLY LIMITING THE RETURNS COMPANIES NEED TO JUSTIFY HIGHRISK INVESTMENTS A PRICING BOARD WILL BE CATASTROPHIC IT WILL STRANGLE THE INDUSTRY SAYS RICHARD BAGLEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF IMMULOGIC PHARMACEUTICAL CORP OF WALTHAM MASS A LOT OF GOOD TECHNOLOGY AND PROMISING MEDICAL LEADS WILL GET THROWN DOWN THE DRAIN MR BAGLEY AND HIS PEERS AT OTHER YOUNG AND SMALL BIOTECH COMPANIES ARE FANNING OUT ACROSS THEIR HOME STATES PLEADING THEIR CASE TO CONGRESSIONAL REPRESENTATIVES AND NEWSPAPER EDITORIAL BOARDS IN WASHINGTON SEVERAL BIOTECH INDUSTRY LOBBYISTS ARE MEETING QUIETLY WITH KEY HEALTH STAFFERS IN THE WHITE HOUSE AND CONGRESS SUGGESTING A COMPROMISE ELIMINATING THE BOARD'S ABILITY TO MANDATE PRICES THE BIOTECH INDUSTRY IS COMPOSED OF DOZENS OF MOSTLY SMALL CONCERNS CREATED WITH VENTURE CAPITAL IN THE PAST FIVE TO 10 YEARS TO COMMERCIALIZE ADVANCES IN GENETICS COMPANY OFFICIALS BITTERLY COMPLAIN THAT THE PRICING BOARD IS AIMED AT THE LARGE DRUG MAKERS SUCH AS MERCK & CO OR PFIZER INC WHICH RAISED PRICES SHARPLY THROUGHOUT THE 1980S THE FEW BIOTECH MEDICINES CURRENTLY AVAILABLE ARE PRICED HIGH COMPANIES SAY TO PROVIDE PREMIUM RETURNS INVESTORS SEEK FOR HIGHRISK INVESTMENTS AND TO FUEL FUTURE RESEARCH WE ARE BEING HURT BECAUSE OF THE ANGER AT THE EXCESSIVE PRICING POLICIES OF THE BIG DRUG COMPANIES SAYS LEONARD SCHLIEFER CHIEF EXECUTIVE AT REGENERON INC A TARRYTOWN NY COMPANY SEEKING DRUGS AGAINST NEUROLOGICAL DISEASES NO PROMISES SEVERAL GOVERNMENT AIDES SAY THEY ARE SYMPATHETIC TO THE COMPANIES' CONCERNS THEY SAY THEY ARE LISTENING TO THE INDUSTRY'S PROPOSALS BUT MAKING NO PROMISES ABOUT THE PRICING BOARD AT THE END OF THE DAY WE STILL WILL NEED TO CONTROL SPENDING ESPECIALLY IF AS PROPOSED THE HEALTH PLAN PROVIDES UNIVERSAL COVERAGE FOR OUTPATIENT DRUG BILLS ONE STAFFER SAYS UNDER THE PROPOSED ADMINISTRATION PLAN THE PRICING BOARD WILL REVIEW THE PRICE A COMPANY SEEKS TO CHARGE AND EVALUATE WHETHER IT IS JUSTIFIED BY DEVELOPMENT COSTS IF A COMPANY REFUSES TO NEGOTIATE THE BOARD UNDER THE AUTHORITY OF THE SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES CAN SET THE PRICE ITSELF OR REFUSE TO HAVE GOVERNMENT INSURANCE PLANS REIMBURSE FOR THE DRUG'S USE THE BIOTECH LOBBYISTS ARE HOPING CONGRESS WILL ENACT THEIR IDEA ALLOWING A FEDERAL AGENCY TO DETERMINE IF A NEW DRUG PROVIDES A COST BENEFIT AND THEN DISSEMINATING ITS FINDINGS TO PRIVATE HEALTHINSURANCE PLANS THAT WOULD DECIDE WHETHER TO FULLY REIMBURSE FOR THE DRUG'S COST THAT WOULD ALLOW THE MARKETPLACE TO DETERMINE IF A DRUG'S PRICE IS RIGHT OR NOT SAYS ONE LOBBYIST BIOTECH BUSINESSES ARE WARNING POLITICIANS THAT THE PROSPECT OF PRICE CONTROLS IS FRIGHTENING WALL STREET ALREADY SKITTISH ABOUT THE SPECULATIVE NATURE OF MOST BIOTECH PROJECTS SINCE LAST YEAR WHEN THE PRICING BOARD WAS FIRST PROPOSED STOCK PRICES OF MOST BIOTECH COMPANIES HAVE PLUMMETED BIOTECH OFFICIALS SAY LOWER STOCK VALUES AND NERVOUS INVESTORS ALREADY HAVE FORCED COMPANIES TO SCALE BACK OR JETTISON RESEARCH IF A PRICE BOARD REALLY HAPPENS THEN THE WHOLE INDUSTRY WILL GO OUT OF FAVOR SAYS FREDERIC GREENBERG OF EGS PARTNERS A NEW YORK MONEY MANAGEMENT FUND STOCK VALUE WILL DROP NO ONE WILL TOUCH THE GROUP BIOTECHNOLOGY COMPANIES ARE ESPECIALLY DEPENDENT ON INVESTOR CAPITAL SINCE EVEN THE SUCCESSFUL ENTERPRISES HAVE YET TO GENERATE A STEADY FLOW OF PRODUCTS TO KEEP EXPENSIVE RESEARCH LABORATORIES HUMMING THESE FIRMS ARE RAVENOUS MR GREENBERG SAYS THEY CONSTANTLY NEED MORE CASH OFFICIALS AT BIO THE INDUSTRY'S TRADE GROUP IN WASHINGTON ARE PRESENTING POLITICIANS WITH SCENARIOS OF COMPANIES ALREADY INJURED BY INVESTOR ANXIETY THEY POINT FOR EXAMPLE TO TANOX BIOSYSTEM INC OF HOUSTON WHICH SAYS IT CAN'T RAISE NEW MONEY TO DEVELOP A SYNTHETIC ANTIBODY TO FIGHT OFF THE AIDS VIRUS WE HAVE THE ANTIBODY SITTING IN THE REFRIGERATOR SAYS HERBERT LOVELESS VICE PRESIDENT OF CLINICAL DEVELOPMENT BUT DR LOVELESS SAYS HE HAS BEEN TOLD BY INVESTORS THAT IN ADDITION TO THE CONCERN OVER THE COST OF DEVELOPING A PROJECT NOW THEY ARE WORRIED THAT YOU WON'T BE ABLE TO GET THE PRICE YOU NEED CRYOPHARM CORP A SIXYEAROLD PASADENA CALIF COMPANY INVESTIGATING WAYS TO EXTEND THE LIFE OF STORED BLOOD SAYS DIFFICULTY GETTING NEW FINANCING FORCED IT TO SHELVE TWO EXPERIMENTAL PROJECTS MACRONEX INC A PRIVATE VENTUREBACKED COMPANY IN RESEARCH TRIANGLE PARK NC SAYS IT HAS BEEN UNABLE TO TAP NEW INVESTORS TO BACK ITS ASTHMA AND ARTHRITIS DRUG PROGRAMS VENTURE FUNDS HAVE TOLD ME THEY ARE NOT INVESTING BECAUSE OF HEALTHCARE REFORM SAYS DENNIS BURNS MACRONEX'S CHIEF EXECUTIVE THEY ARE UNCOMFORTABLE ABOUT MY ABILITY TO TAKE THE COMPANY PUBLIC BARRY WEINBERG A PARTNER OF CW VENTURES A NEW YORK VENTURECAPITAL FIRM THAT HAS HELPED SEED MANY BIOTECH STARTUPS OVER THE YEARS SAYS THE LARGER PORTION OF HIS FIRM'S INVESTMENTS THESE DAYS IS OUTSIDE THE AREA OF BIOTECH BECAUSE OF THE RISK OF PRICE CONTROLS THE LIKELIHOOD OF GETTING THE KIND OF RETURNS WE NEED ISN'T THERE MR WEINBERG SAYS WE ARE MAKING INVESTMENTS IN BIOTECH BUT WE'RE BEING A LOT MORE CAREFUL AND IT'S TAKING US A LOT LONGER TO MAKE UP OUR MINDS CHRISTOPHER JENNINGS A WHITE HOUSE HEALTH AIDE SAYS THE CLINTON ADMINISTRATION WANTS VERY MUCH TO SUPPORT THE BIOTECHNOLOGY INDUSTRY BUT HE SAYS THE ADMINISTRATION ISN'T CONVINCED THE INDUSTRY HAS FINANCING PROBLEMS FEINSTEIN PARTNERS A BOSTON CONSULTING FIRM SAYS BIOTECH COMPANIES IN 1993 RAISED 29 BILLION IN PUBLIC AND PRIVATE STOCK OFFERINGS UP FROM 25 BILLION IN 1992 BUT THE BIOTECH COMPANIES SAY INITIAL PUBLIC STOCK OFFERINGS DECLINED LAST YEAR 53 TO 662 MILLION MOREOVER MANY COMPANIES SAID THEY HAD TO RAISE CASH THROUGH PRIVATE STOCK SALES CALLED PIPES IN WHICH SHARES ARE SOLD AT 10 TO 15 OFF THE STOCK MARKET PRICES ERNST & YOUNG THE ACCOUNTING FIRM SAYS ABOUT 335 MILLION WAS RAISED THROUGH PIPES IN 1993 UP FROM 10 MILLION IN 1992 MR BAGLEY OF IMMULOGIC SAYS WASHINGTON SHOULDN'T BE MISLED BY THESE FIGURES ARGUING THAT THE COMPANIES CAN'T LIVE LONG BY SELLING STAKES AT A DISCOUNT BELIEVE ME IF WE GET PRICE CONTROLS HALF THE COMPANIES GO OUT OF BUSINESS HE SAYS 9401310099 940131 MARKETING PHOTOGRAPHY COMPANIES TRY TO CLICK WITH CHILDREN BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PHOTOGRAPHY COMPANIES ARE FOCUSING ON THE CONSUMERS WHO REALLY CONTROL HOUSEHOLD PURSE STRINGS KIDS FROM OFFERING GIVEAWAYS TO NEIGHBORHOOD SOCCER CLUBS TO PROMOTING THE USE OF CAMERAS IN CLASSROOMS THE BIG NAMES IN THE BUSINESS ARE DOING THEIR BEST TO ENTICE A ONCEOVERLOOKED GROUP OF CONSUMERS WITH GOOD CAUSE GROWTH RATES IN THE INDUSTRY ARE NOT WHAT THEY USED TO BE SAYS EASTMAN KODAK CO'S BOB LAPERLE GENERAL MANAGER OF SINGLEUSE CAMERAS A POPULAR ITEM AMONG YOUNGER CROWDS BUT WE KNOW FROM RESEARCH THAT KIDS STILL THINK PHOTOGRAPHY IS COOL IF WE CAN DEVELOP THESE UNIQUE PROGRAMS FOR THEM WE CAN ACCELERATE THE MARKET THE COMPANIES HAVE LITTLE CHOICE MORE THAN 25 OF HOUSEHOLDS DECREASED THEIR PICTURE TAKING BETWEEN 1987 AND 1992 ACCORDING TO THE PHOTO MARKETING ASSOCIATION'S 1993 CONSUMER SURVEY BLAME VIDEO PARENTS AGED 18 TO 34 TRADITIONALLY THE BIGGEST FILM BUYERS ARE TURNING ON VIDEO CAMERAS TO RECORD BABY'S FIRST MEAL FIRST STEP AND FIRST BIRTHDAY IN FACT IN HOUSEHOLDS WITH CHILDREN AGED TWO AND UNDER 70 SAID THEY PLAN TO BUY A VIDEO CAMERA ON THEIR NEXT PURCHASE OF PHOTOGRAPHIC EQUIPMENT COMPARED WITH THE 18 WHO WOULD CHOOSE A 35MM CAMERA ACCORDING TO THE PMA SURVEY BUT CHILDREN ARE A DIFFERENT STORY HAVING GROWN UP IN A VIDEO GENERATION THEY REGARD STILL PHOTOGRAPHY AS SOMETHING OF A NOVELTY SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES RETAIL CONSULTANTS WHAT'S MORE PARENTS SUPPORT PICTURE TAKING AS AN ACTIVITY BECAUSE IT'S CONSIDERED MORE ARTISTIC THAN VIDEO HE SAYS AND IT'S NOT THAT EXPENSIVE CHILDREN CAN CHIP IN THEIR ALLOWANCE TO BUY AND PROCESS FILM I CANNOT THINK OF ANOTHER PRODUCT THAT HAS MORE GOING FOR IT TO BE MARKETED TO CHILDREN MR ROSENBAUM SAYS I WONDER WHAT TOOK THE PHOTOGRAPHY COMPANIES SO LONG TO REALIZE CHILDREN ARE THE BUYERS MAKING UP FOR LOST TIME FUJI PHOTO FILM CO NOW DIRECTS MORE THAN 1 MILLION OF ITS ADVERTISING AND MARKETING BUDGET TOWARD KIDS SAYS ROD KING FUJI'S DIRECTOR OF US CONSUMER MARKETING LATCHING ONTO FERVOR ABOUT SOCCER'S WORLD CUP 1994 WHICH WILL TAKE PLACE THIS YEAR IN THE US FOR THE FIRST TIME FUJI SENT DIRECT MAIL TO 15000 SOCCER COACHES FOR A KIDS IN GEAR PROGRAM WHICH GIVES EQUIPMENT RANGING FROM SHINGUARDS TO A TEAM VAN FOR PROOFS OF PURCHASE FUJI IS ALSO GOING TO SCHOOLS IN EXCHANGE FOR PARTICIPATING IN THE COMPANY'S PHOTOPALS PROGRAM WISCONSIN FIFTHGRADE TEACHER WILLIAM WILLIAMS RECEIVES ONE SINGLEUSE CAMERA AND SOME COUPONS FOR FILM AND FOR MORE SINGLEUSE CAMERAS USING THE EQUIPMENT HIS STUDENTS CORRESPOND PHOTOGRAPHICALLY WITH FUJISELECTED STUDENTS IN HAWAII IT'S A GOOD DEAL MR WILLIAMS FIGURES THERE ARE NO PHOTOGRAPHY CLASSES HERE HE SAYS IF FUJI MAKES SOME MONEY OFF THIS THEN FINE NOT NECESSARILY SAYS JEAN SCHMIDT A NEW JERSEY SCHOOL PRINCIPAL AND FORMER DIRECTOR OF THE NATIONAL HEAD START EDUCATION PROGRAM FOR UNDERPRIVILEGED CHILDREN IT'S SOMETHING THAT HAS TO BE WATCHED VERY CAREFULLY SHE SAYS OF INSCHOOL CORPORATE ACTIVITIES IF COMPANIES WANT TO HELP FUND SCHOOLS FINE LET US CHOOSE THE PROGRAMS BUT TO USE US FOR ADVERTISING IS IMMORAL FUJI IS WELL AWARE OF EDUCATORS' CONCERNS WE WANT TO BE CAREFUL NOT TO OVERCOMMERCIALIZE THIS SAYS MR KING ADDING THAT THE PROGRAM OFFERS OPPORTUNITIES TO BOTH THE SCHOOLS AND STUDENTS THAT THEY WOULD OTHERWISE MISS EQUALLY SENSITIVE TO THE COMMERCIALIZATION CONCERN KODAK NOT ONLY DONATES CAMERAS AND FILM TO SCHOOLS AS PART OF ITS USING CAMERAS IN THE CURRICULUM PROGRAM FOR KIDS IN KINDERGARTEN THROUGH GRADE SIX BUT ALSO LINES UP PHOTOFINISHERS TO PAY THE DEVELOPING BILL FOR A PORTION OF THE PROGRAM THE COMPANY WEAVES ENVIRONMENTAL THEMES INTO ITS PROGRAM AND GIVES TEACHERS A 35MM CAMERA THAT CAN BE USED MORE THAN ONCE KODAK HOPES TO DRAW THE SIXTO11YEAROLD CROWD WITH THE SCHOOL PROGRAM AS IT DID WITH ITS SINGLEUSE CAMERA DECORATED WITH CHARACTERS FROM THE HIT MOVIE ALADDIN THEN FOR KIDS TOO OLD FOR SUCH THINGS THERE WAS THE PHOTO FX 35MM CAMERA LAUNCHED LAST YEAR FOR 3995 A REAL CAMERA THAT LOOKS LIKE MOM AND DAD'S MR LAPERLE SAYS SUCH A GRADUAL TRAINING PROCESS IS VERY VERY SMART SAYS LEO SHAPIRO'S MR ROSENBAUM IN FACT ALTHOUGH NEARLY 60 OF ALL CUSTOMERS PLAN TO BUY A CAMCORDER VS A TRADITIONAL CAMERA ON THEIR NEXT PURCHASE THOSE UNDER 25 ARE STILL MORE LIKELY THAN ANY OTHER AGE GROUP EXCEPT THOSE 75 AND OLDER TO CHOOSE THE STANDARD 35MM CAMERA ACCORDING TO THE PHOTO MARKETING ASSOCIATION'S SURVEY THAT IS WHY KONICA USA INC A UNIT OF KONICA CORP SHIFTED MORE THAN 15 MILLION FOR A PROMOTION APPEARING DURING ABC NETWORK'S PRIME DAYTIME DRAMA HOURS WHEN TEENAGERS AND COLLEGE STUDENTS TUNE IN OR TAPE THEIR FAVORITE SOAPOPERA SEGMENTS KONICA EVEN SPONSORED A CONTEST FOR CONSUMERS WITH THE WINNER OFFERED A CHANCE TO APPEAR ON ALL MY CHILDREN A NEW GROUP OF PEOPLE IS BECOMING SAVVY ABOUT PHOTOGRAPHY AND THAT'S WHY AS MARKETERS WE'RE GOING AFTER THEM SAYS PAUL GORDON KONICA'S MARKETING/ADVERTISING DIRECTOR IN ITS BID FOR THE YOUTH MARKET POLAROID CORP STAGED EXTENSIVE BACKTOSCHOOL PROMOTIONS COMPLETE WITH STOCKCAR RACER SHAUNA ROBINSON SIGNING AUTOGRAPHS MEANWHILE MINNESOTA MINING & MANUFACTURING CO IS TARGETING PRICECONSCIOUS FAMILIES WITH ITS LOWERPRICED PRIVATELABEL AND SCOTCH BRAND FILMS 3M USES GRAPHICS OF MOMS AND KIDS IN ITS POINTOFSALE ADVERTISING IT THUS HOPES TO ATTRACT PARENTS WHO WANT THEIR LITTLE SUSIE TO EXPERIMENT WITH PICTURE TAKING BUT WHO DON'T WANT TO SPEND A FORTUNE ON WASTED PICTURES OF THE DOG AND SUSIE'S FAVORITE STUFFED ANIMALS AND 3M WILL GIVE ABOUT 250000 TO ITS RETAILERS TO PROMOTE ITS KIT FOR KIDS A 10 PACKAGE WITH A SINGLEUSE CAMERA PROJECT BOOK AND PHOTO ALBUM WITH GLUE STICK WHICH 3M ALSO MAKES OTHER LEISURE ACTIVITIES HAVE TAKEN THE LEAD AND KIDS HAVE NOT BEEN AS EXPOSED TO PHOTOGRAPHY SAYS 3M'S JOHN GREGERSON MARKET DEVELOPMENT MANAGER WE'VE GOT TO CONVINCE THEM THAT THERE ARE STILL A LOT OF FUN MEMORIES TO BE MADE HERE 9401310098 940128 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 9401310097 940117 REVIEW & OUTLOOK EDITORIAL GORE'S GANG GETS IT RIGHT FOR ONCE THE NEW DEMOCRATS MAY ACTUALLY INTEND TO TAKE ON THE IRON TRIANGLE THE CLINTONITES MAY HAVE GONE FAINT OF HEART ON LIBERATING THE POOR FROM THE WELFARE BUREAUCRATS BUT THERE'S A WHIFF OF SERIOUSNESS ABOUT THEIR PROPOSAL TO LIBERATE THE NATION'S AIR TRAFFIC CONTROL SYSTEM FROM THE FUMBLEFINGERS AT FAA UTTERING THE UNSPEAKABLE A MEMBER OF VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT SQUAD TELLS US WE WANT TO SEE HOW CLOSE TO PRIVATIZATION' WE CAN GET THE ANSWER IN THE CURRENT IDEOLOGICAL CLIMATE SEEMS TO BE CORPORATIZATION THAT MEANS GOVERNMENT WOULD RETAIN TITLE TO THE RADARS AND CONTROL TOWERS BUT THE AIRLINES WOULD RUN THE SYSTEM AND MAKE THE INVESTMENT CALLS SINCE IT WOULD BE FUNDED BY USER FEES THE CONGRESSIONAL PORKOPHILES WOULD HAVE TO SEEK GRATIFICATION ELSEWHERE WHEN AUSTRALIA AND NEW ZEALAND ADOPTED THE SAME THEORY FIVE YEARS AGO THE COST OF HANDLING A FLIGHT DROPPED BY 25 LET'S DO IT FROM THE THIRD WORLD TO JERSEY CITY YOU CAN OBSERVE THAT PRIVATIZATION HAPPENS WHEN BUREAUCRATS REACH THE INTERSECTION OF PANIC AND DESPAIR BY NOW EVEN THE MOST PURBLIND FAA APPARATCHIK MUST PERCEIVE THE WISDOM IN GETTING SOMEBODY ANYBODY TO TAKE THIS 17 BILLION WHITE ELEPHANT OF A MODERNIZATION PROGRAM OFF THEIR HANDS A FEW MONTHS AGO THE AGENCY WAS DIGGING IN ITS HEELS BUT NOW IT'S ON BOARD TIRED OF THE FEDERAL PROCUREMENT LABYRINTH GIVING THEM YESTERDAY'S TECHNOLOGY THE DAY AFTER TOMORROW AT GOVERNMENT PRICES THE AIRLINES AND THEIR UNIONS ARE GUNGHO TO RUN THE SYSTEM THEMSELVES EVEN THE AIR TRAFFIC CONTROLLERS APPLAUD THE MOVE FIGURING THEY'LL GET MORE COMPETITIVE PAY AND A BETTER WORKING ENVIRONMENT PREDICTABLY THE ONLY OAR ROWING IN THE OPPOSITE DIRECTION IS THE REACTIONARY US CONGRESS REP JAMES OBERSTAR WAILS THAT THE SAFETY OF THE TRAVELING PUBLIC WOULD BE JEOPARDIZED IF THE PORKBARRELING OPPORTUNITIES OF HIS HOUSE AVIATION SUBCOMMITTEE WERE TRIMMED BACK SLAPPING ANOTHER COAT OF RED ON THIS HERRING ARE THE PRIVATE PILOT AND CORPORATE JETSET LOBBIES RIGHT NOW THE SYSTEM PAYS THEM TO HOG SPACE ON RUNWAYS WHILE JUMBOLOADS OF PAYING PASSENGERS WAIT AND BURN UP PRECIOUS FUEL MR GORE'S COMMANDOS MAKE A BIG SHOW OF REMINDING EVERYBODY THAT SAFETY ENFORCEMENT WOULD REMAIN A VITAL FEDERAL FUNCTION OFF THE RECORD THEY RECOGNIZE THAT IT'S A PHONY ISSUE FLYING GOT SAFER AFTER DEREGULATION THE AIRLINES WERE SUDDENLY COMPETING FOR PASSENGERS AND NOTHING DRAWS PEOPLE INTO THE AIR LIKE A REPUTATION FOR NOT KILLING YOUR CUSTOMERS THE BIGGEST CHALLENGE FOR THE CLINTONITES WILL BE TO STOP THE HILL FROM LOADING UP THE NEW CORPORATION'S BOARD OF DIRECTORS WITH POLITICAL HACKS THESE WOULD BE PROMOTED IN THE NAME OF DEFENDING THE PUBLIC INTEREST BUT WHAT REALLY INTERESTS THE PUBLIC IS SAFE EFFICIENT AIR TRAVEL THE SAME AS THE AIRLINES THAT'S WHY THE AIRLINES SHOULD HAVE THE DOMINANT VOICE IN MANAGING THE CONTROL SYSTEM ON A SWING THROUGH WASHINGTON RECENTLY PETER PROULX THE TOP MAN AT NEW ZEALAND'S AIR TRAFFIC CONTROL AGENCY SANG THE PRAISES OF THE GORE PROPOSAL BUT ADDED A WARNING NOTE SOONER OR LATER THE POLITICIANS WILL EXPLOIT WHATEVER OPENING YOU LEAVE THEM IN THE LONG RUN THE BEST COURSE LIES WITH TRUE PRIVATIZATION SEE RELATED LETTER LETTERS TO THE EDITOR DON'T SELL OUT AIR TRAFFIC CONTROL WSJ JAN 31 1994 9401170093 YY94 MM01 9401310096 940131 PROFIT OF CAMBRIDGE TECHNOLOGY INCREASED IN QUARTER FIRM SAYS CAMBRIDGE MASS CAMBRIDGE TECHNOLOGY PARTNERS INC CITING AN INCREASE IN BUSINESS SAID IT'S COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT IT WILL REPORT FOURTHQUARTER NET INCOME OF 1 MILLION OR SEVEN CENTS A SHARE ON REVENUE OF 98 MILLION IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 521000 OR FOUR CENTS A SHARE ON REVENUE OF 59 MILLION CAMBRIDGE TECHNOLOGY A CONSULTING FIRM THAT CUSTOM DESIGNS SOFTWARE APPLICATIONS FOR CLIENTS SAID ITS CUSTOMER BASE IS INCREASING AS MORE COMPANIES SWITCH FROM MAINFRAME COMPUTER SYSTEMS TO LESS EXPENSIVE CLIENTSERVER SYSTEMS THE ENTIRE WORLD IS GOING IN THIS DIRECTION JAMES K SIMS CHIEF EXECUTIVE AND PRESIDENT SAID IN AN INTERVIEW BILLIONS OF DOLLARS ARE BEING SPENT IN AN OLD WORLD OF TECHNOLOGY THAT DOESN'T SOLVE PROBLEMS COMPANIES ARE LOSING MONEY AND LAYING OFF PEOPLE BECAUSE THE TECHNOLOGY ISN'T WORKING FOR THEM BUT THE INDUSTRY IS CHANGING WITH THE TRANSITION OUR CLIENTS NEED HELP HE SAID CAMBRIDGE TECHNOLOGY HOLDS WORKSHOPS FOR CUSTOMERS TO FIND OUT FROM EMPLOYEES WHAT APPLICATIONS THEY WANT A NEW COMPUTER SYSTEM TO PROVIDE SUCH AS BETTER CUSTOMER SERVICE BILLING OR ORDERMANAGEMENT OPTIONS CAMBRIDGE TECHNOLOGY THEN DESIGNS A COMPUTER SYSTEM AROUND THOSE SPECIFIC APPLICATIONS THE COMPANY WHICH HAS NINE OFFICES IN THE US AND FOUR IN EUROPE SAID IT HAS DESIGNED SYSTEMS FOR 120 COMPANIES CAMBRIDGE TECHNOLOGY SAID ITS GROWTH WAS PARTLY DUE TO THE FACT THAT IT AGREES TO SET ITS PRICES ON VARIOUS SERVICES UPFRONT WHILE MANY COMPETITORS DON'T IT ALSO PROMISES TO COMPLETE PROJECTS IN A GIVEN TIME FRAME TYPICALLY SIX TO EIGHT MONTHS COMPARED WITH AN INDUSTRY AVERAGE OF TWO TO THREE YEARS FOR 1993 CAMBRIDGE TECHNOLOGY PARTNERS SAID IT'S COMFORTABLE WITH ANALYSTS' EXPECTATIONS OF NET INCOME OF 43 MILLION OR 34 CENTS TO 35 CENTS A SHARE ON REVENUE OF 32 MILLION RESULTS WILL INCLUDE A 12 MILLION GAIN FOR ACCOUNTING CHANGES IN 1992 THE COMPANY HAD NET INCOME OF 13 MILLION OR 11 CENTS A SHARE ON REVENUE OF 192 MILLION 9401310095 940131 TECHNOLOGY WORDPERFECT CORP SUSPENDS DOS VERSION OF FLAGSHIP SOFTWARE OREM UTAH WORDPERFECT CORP SAID IT WON'T RELEASE ANY MAJOR NEW VERSIONS OF ITS DOS WORDPROCESSING PROGRAM ONE OF THE MOST POPULAR PIECES OF SOFTWARE EVER CITING A STEEP DECLINE IN SALES WORDPERFECT THE LAST MAJOR SOFTWARE COMPANY TO DOWNGRADE ITS DOS OFFERINGS IN FAVOR OF MICROSOFT CORP'S WINDOWS OPERATING ENVIRONMENT SAID IT WILL ONLY RELEASE MAINTENANCE VERSIONS OF ITS DOS WORD PROCESSOR IN THE FUTURE HOWEVER THE CLOSELY HELD COMPANY PROMISED TO ENSURE THAT DOCUMENTS CREATED BY ITS DOS PROGRAM WORK WITH ITS FUTURE WORD PROCESSORS WORDPERFECT SHIPPED A NEW DOS VERSION LAST JUNE AND HAS SOLD 15 MILLION COPIES SINCE BUT IN RECENT MONTHS SALES HAVE SLOWED CONSIDERABLY AND ARE NOW MINUSCULE COMPARED WITH THE WINDOWS VERSION OF WORDPERFECT A SPOKESMAN SAID THE SWING TO WINDOWS A PROGRAM THAT MAKES DOS EASIER TO USE AND REQUIRES APPLICATIONS TO BE TAILORED TO IT MEANS TOUGHER COMPETITION FOR WORDPERFECT LAST YEAR WORDPERFECT LOST ITS LEAD TO MICROSOFT IN THE 13 BILLION ANNUAL MARKET FOR WORDPROCESSING SOFTWARE PARTLY BECAUSE MICROSOFT PUSHED WINDOWS PROGRAMS HARDER AND SOONER 9401310093 940131 LAW LEGAL BEAT IRRECONCILABLE DIFFERENCES FORCE SHEA & GOULD CLOSURE BY MILO GEYELIN AND EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF NEW YORK'S MIGHTIEST LAW FIRMS SHEA & GOULD IS CLOSING ITS DOORS UNABLE TO MAKE THE TRANSITION TO A NEW GENERATION OF LEADERSHIP SHEA & GOULD FELL VICTIM TO POWER STRUGGLES AS ITS PARTNERS BICKERED OVER ITS FUTURE AND DIRECTION AT ITS PEAK THE FIRM HAD 350 LAWYERS AND PLAYED A LEADING ROLE IN NEW YORK POLITICS BANKING REAL ESTATE AND SPORTS BUT IT WAS NEVER ABLE TO RESOLVE A QUESTION THAT PLAGUES BUSINESSES AS THEIR FOUNDERS REACH RETIREMENT AGE HOW TO PASS CONTROL FROM AUTOCRATIC PATRIARCHS TO A NEW GENERATION OF MANAGERS THAT PROBLEM WAS EXACERBATED BY THE TOUGH ECONOMIC CLIMATE FOR LAW FIRMS LEGAL MANAGEMENT CONSULTANTS HAD BEEN CALLED IN TWICE TO OVERHAUL SHEA & GOULD'S FINANCIAL AND ORGANIZATIONAL STRUCTURE AS TENSIONS ESCALATED IN RECENT WEEKS MANY PARTNERS QUIETLY BEGAN TALKS WITH OTHER FIRMS IT'S A LAW FIRM THAT HAD TWO GREAT FOUNDERS WITHOUT A SUCCESSOR SAYS RODERICK M HILLS MANAGING PARTNER OF SHEA & GOULD'S WASHINGTON DC OFFICE THERE WERE NO PERSONALITIES TO CARRY IT ON SEVERAL BIG AND MEDIUMSIZED LAW FIRMS HAVE DISSOLVED IN RECENT YEARS AMID NASTY POWER STRUGGLES OVER SUCCESSION OTHERS HAVE COLLAPSED AFTER EFFORTS TO REFINANCE DEBT OR RENEGOTIATE LEASE OBLIGATIONS FAILED AS PARTNERSHIPS LAW FIRMS OFTEN LACK AN INSTITUTIONAL HIERARCHY OR FRAMEWORK FOR MAKING DECISIONS SAYS LAW FIRM CONSULTANT D BROWARD CRAIG A FORMER PARTNER AT THE DISSOLVED NEW YORK FIRM WEBSTER & SHEFFIELD BUT FEW FAILED FIRMS HAD THE CLOUT OR REPUTATION OF SHEA & GOULD SINCE ITS BIRTH 30 YEARS AGO SHEA & GOULD WAS DOMINATED BY ITS LEGENDARY FOUNDING PARTNER WILLIAM A SHEA A POWERFUL BEHINDTHESCENES BROKER IN CITY AND STATE POLITICS WHO ADVISED MAYORS AND GOVERNORS OF BOTH MAJOR PARTIES AFTER THE BROOKLYN DODGERS BASEBALL TEAM MOVED TO LOS ANGELES MR SHEA PLAYED A MAJOR ROLE IN CREATING THE NEW YORK METS AND THEIR BALLPARK SHEA STADIUM MR SHEA WHO DIED IN OCTOBER 1991 AND COFOUNDER MILTON S GOULD 84 YEARS OLD BUILT SHEA & GOULD INTO A LAW FIRM OF STREET FIGHTERS AND BROKERS THOUGH IT NEVER ESTABLISHED THE KIND OF NATIONAL REPUTATION OF SOME SIMILARLY SIZED FIRMS SUCH AS LOS ANGELES'S O'MELVENY & MYERS IT WAS A FORCEFUL PRESENCE IN NEW YORK ALBANY AND WASHINGTON AMONG ITS CLIENTS WERE THE BIG SIX ACCOUNTING FIRM DELOITTE & TOUCHE THE TOYS R US RETAIL CHAIN AND MANY BANKS INCLUDING MARINE MIDLAND BANK AND APPLE BANK FOR SAVINGS AS WELL AS THE NEW YORK YANKEES AND THE METS REVENUE IN 1993 WAS 85 MILLION UP FROM 83 MILLION THE YEAR BEFORE FINANCES WEREN'T THE PROBLEM SAYS LAW FIRM CONSULTANT BRADFORD W HILDEBRANDT WHO WAS CALLED IN TWICE TO ADVISE SHEA & GOULD AND ULTIMATELY RECOMMENDED THAT IT DISBAND THIS WAS A FIRM THAT HAD BASIC AND PRINCIPLED DIFFERENCES AMONG THE PARTNERS THAT WERE BASICALLY IRRECONCILABLE HE SAYS THE LEADERSHIP CRISIS BEGAN IN THE MID1980S WHEN MESSRS SHEA AND GOULD BEGAN TO CEDE CONTROL TO YOUNGER LAWYERS IN 1985 THEY RELINQUISHED THEIR VETO POWER OVER THE FIRM'S SEVENMEMBER EXECUTIVE COMMITTEE ALMOST IMMEDIATELY SHEA & GOULD BEGAN TO LOSE ITS WAY AT THE PEAK OF THE REAL ESTATE MARKET THE FIRM MOVED FROM SMALLER MADISON AVENUE OFFICES INTO FOUR FLOORS OF THE EXXON BUILDING IN NEW YORK A PRESTIGIOUS BUT EXPENSIVE PROPERTY THEN IT OPENED OFFICES IN LOS ANGLES AND MIAMI WITH TWO COSTLY MERGERS WITH OTHER FIRMS THAT SOON FELL APART BUT THE BIGGEST PROBLEM WAS THE FAILURE OF SHEA & GOULD'S NEW LEADERS JEROME KERN AND THOMAS E CONSTANCE TO TAKE THE FOUNDERS' PLACE IN PARTNERS' HEARTS AND APPEASE THE FIRM'S FACTIONS THE MANAGEMENT OF THE FIRM MOREOVER WAS OVERSEEN BY A DIVIDED SEVENMEMBER COMMITTEE THAT DIDN'T HAVE GOOD BUSINESS SENSE OR THE LOVE OF ITS PARTNERS SAYS MR HILLS BY 1991 WHEN MR HILDEBRANDT WAS FIRST HIRED THE EXECUTIVE COMMITTEE HAD SWELLED TO 10 MEMBERS DECISIONS WERE NOT BEING MADE AND THERE WAS TOO MUCH DISAGREEMENT ON POLICY MR HILDEBRANDT SAYS THERE WERE TOO MANY PEOPLE INVOLVED AND PARTNERS FELT THEY WEREN'T BEING CONSULTED ENOUGH AT MR HILDEBRANDT'S URGING THE EXECUTIVE COMMITTEE WAS CUT IN HALF THE FIRM RENEGOTIATED ITS 18 MILLIONAYEAR LEASE WITH MITSUI & CO WHICH OWNS THE EXXON BUILDING SHAVING 15 MILLION IN OVERHEAD OVER THREE YEARS COMPENSATION WAS OVERHAULED TO REFLECT PERFORMANCE MR KERN BOWED OUT IN 1991 MR CONSTANCE TOOK OVER LAUNCHING AN AGGRESSIVE RECRUITING CAMPAIGN BRINGING IN 20 PARTNERS FROM OTHER LAW FIRMS MR KERN DECLINED TO COMMENT MR CONSTANCE DID NOT RETURN PHONE CALLS BUT ACCORDING TO LAWYERS AT THE FIRM THE EXPANSION ONLY SPARKED NEW RIFTS MR CONSTANCE FOR EXAMPLE RECRUITED BOTH MR HILLS TO HEAD AN INTERNATIONAL PRACTICE AND CARLA HILLS THE FORMER US TRADE REPRESENTATIVE LAST YEAR MR HILLS'S WASHINGTON OFFICE LOST ABOUT 1 MILLION A PARTICULAR SORE POINT FOR MANY LAWYERS SAYS A FORMER PARTNER BY OCTOBER THE FIRM HAD BECOME BLOATED AND WAS RIVEN BY DISCORD OVER EXPANSION PLANS RAISING CAPITAL AND DAYTODAY MANAGEMENT ISSUES NO SINGLE LEADER WAS STRONG ENOUGH TO SEIZE CONTROL ACCORDING TO NEW YORK LEGAL RECRUITER LYNN MESTEL SHEA & GOULD WAS THE VICTIM OF TOO MUCH DEMOCRACY AFTER TOO MANY YEARS OF DICTATORSHIP THEY NEEDED A YELTSIN SHE SAYS INSTEAD MR HILDEBRANDT STEPPED IN A SECOND TIME TO RECOMMEND DOWNSIZING SOME 20 PARTNERS AND 15 ASSOCIATES SUBSEQUENTLY DEPARTED FREEING A FLOOR AT THE EXXON BUILDING THAT SHEA & GOULD PLANNED TO RELINQUISH IN A NEW RENEGOTIATED LEASE BUT MANY PARTNERS HAD GIVEN UP HOPE IN THE PAST MONTH FIVE HAVE LEFT AND TWO WEEKS AGO MR CONSTANCE BEGAN DISCUSSING MOVING WITH A GROUP OF LAWYERS TO THE NEW YORK OFFICE OF MIAMI'S GREENBERG TRAURIG HOFFMAN LIPOFF ROSEN & QUENTEL LAST WEEK WHEN THE 80 PARTNERS MET TO VOTE ON DISSOLUTION THE MAJORITY WERE RESIGNED TO THE FACT THAT THE PROBLEMS COULD NOT BE RESOLVED SAYS MR HILDEBRANDT OTHER THAN ITS LEASE OBLIGATIONS AND 15 MILLION OWED TO CHEMICAL BANK HE SAYS SHEA & GOULD HAS NO OTHER SIGNIFICANT DEBT ITS PENSION FUND IS FULLY FUNDED AND PARTNERS AREN'T INDIVIDUALLY LIABLE FOR THE FIRM'S LEASE OBLIGATIONS MR HILDEBRANDT SAYS THE FIRM HAS ENOUGH ASSETS TO PAY OFF THE DEBT A MISTRIAL WAS DECLARED IN THE LOS ANGELES MURDER TRIAL OF LYLE MENENDEZ AFTER THE JURY FAILED TO REACH A VERDICT MIRRORING THE RESOLUTION TWO WEEKS AGO OF A SEPARATE JURY'S DELIBERATIONS IN THE CASE AGAINST MR MENENDEZ'S BROTHER ERIK LYLE MENENDEZ 26 YEARS OLD WAS ACCUSED WITH ERIK 23 OF SHOOTING THEIR WEALTHY PARENTS FOUR YEARS AGO THE BROTHERS TESTIFIED THAT THEY HAD FEARED FOR THEIR LIVES AFTER YEARS OF SEXUAL ABUSE BY THEIR FATHER AND THAT THEY KILLED THEIR MOTHER BECAUSE SHE WAS IN ON THEIR FATHER'S ALLEGED SCHEME TO MURDER THEM LYLE MENENDEZ'S JURY ENDED IN A DEADLOCK AFTER 136 HOURS OF DELIBERATIONS WHICH STRETCHED OVER SEVEN WEEKS AND WERE SUSPENDED FOR A WEEK BECAUSE OF THE LOS ANGELES EARTHQUAKE ERIK'S JURY HAD LABORED FOR 20 DAYS A GUILTY VERDICT ON THE MOST SERIOUS CHARGE FIRSTDEGREE MURDER COULD HAVE BROUGHT THE DEATH PENALTY TWO JURIES WERE USED BECAUSE SOME EVIDENCE WAS PRESENTED AGAINST ONLY ONE BROTHER THOUGH BOTH WERE CHARGED WITH THE SAME CRIMES THREE MEMBERS OF LYLE MENENDEZ'S JURY AND FIVE OF ERIK MENENDEZ'S VOTED TO CONVICT THEM OF FIRSTDEGREE MURDER JUDGE STANLEY WEISBERG SAID ACCORDING TO THE ASSOCIATED PRESS THE HUNG JURIES GAVE THE DEFENSE TEAM A CLEAR VICTORY IN AVOIDING CONVICTION EVEN ON LESSER CHARGES SUCH AS MANSLAUGHTER BUT PROSECUTORS HAVE SAID THEY WILL PRESS FOR QUICK RETRIALS OF BOTH DEFENDANTS THE INABILITY OF THE SECOND PANEL TO REACH A DECISION INDICATED ONCE AGAIN THAT DIFFICULT QUESTIONS OF GUILT AND JUSTIFICATION CAN DIVIDE JURORS EVEN IN CASES WHEN CONFESSED KILLERS SHOT AT POINTBLANK RANGE THE CASE STEMMED FROM THE AUG 20 1989 SHOTGUN HOMICIDES OF JOSE MENENDEZ AND HIS WIFE KITTY IN THEIR BEVERLY HILLS CALIF HOME THE SENIOR MR MENENDEZ WAS CHAIRMAN OF THE LOS ANGELES VIDEOCASSETTE DISTRIBUTOR LIVE ENTERTAINMENT INC AND WAS WELL KNOWN IN HOLLYWOOD SOCIAL AND BUSINESS CIRCLES HIS SONS WHO STOOD TO INHERIT THE COUPLE'S 14 MILLION ESTATE WERE ARRESTED A FEW MONTHS AFTER THE MURDER THEIR EVENTUAL ACKNOWLEDGMENT THAT THEY HAD FIRED THE SHOTS MADE THE CASE SEEM AT FIRST LIKE AN EASY ONE FOR PROSECUTORS BUT DURING THE FIVEMONTH TRIAL THE CASE CAME TO FOCUS ON LYLE'S AND ERIK'S TESTIMONY ALLEGING HARROWING INSTANCES OF SEXUAL AND EMOTIONAL ABUSE SPANNING MANY YEARS THEY SAID THAT THE MISTREATMENT HAD LED THEM TO BELIEVE THAT THEIR FATHER WITH THEIR MOTHER'S TACIT APPROVAL WAS PREPARED TO KILL THEM THE PROSECUTION ARGUED THAT THE CLAIMS OF ABUSE WERE LIES AND THAT THE BROTHERS HAD ACTED OUT OF HATRED AND AVARICE AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9401310092 940131 POLITICS & POLICY CHECK OF NORTH KOREA NUCLEAR SITES WON'T PROVIDE COMFORT CLINTON WANTS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EARLIER THIS MONTH UNDERSECRETARY OF STATE LYNN DAVIS WAS ASKED ON THE MACNEILLEHRER PROGRAM HOW THE US COULD BE CONFIDENT THAT A DIVERSION OF NUCLEAR MATERIALS WASN'T GOING ON AT NORTH KOREA'S YONGBYON RESEARCH FACILITY WELL BECAUSE WE'VE HAD THIS SAFEGUARDS REGIME IN PLACE OVER THE PAST YEAR AND INDEED HAD AN INSPECTION IN AUGUST SO IT ISN'T THAT WE HAVEN'T BEEN CARRYING OUT THIS REGIME SHE ANSWERED BUT OFFICIALS OF THE INTERNATIONAL ATOMIC ENERGY AGENCY THE VIENNABASED GROUP THAT ACTUALLY CARRIED OUT THAT AUGUST INSPECTION PAINT A VASTLY LESS ROSY PICTURE ITS INSPECTORS THE GROUP SAYS WERE LITERALLY LEFT GROPING IN THE DARK THEY WERE PERMITTED TO LEAVE THEIR BARRACKSLIKE GUEST QUARTERS AT YONGBYON 60 MILES NORTH OF PYONGYANG ONLY AFTER 6 PM AS NIGHT FELL THEY WERE ESCORTED INTO THE PITCHBLACK INNARDS OF SEVERAL BUILDINGS THERE USING FLASHLIGHTS BECAUSE THE BUILDINGS' LIGHTS WERE KEPT OUT THE INSPECTORS ONLY REPLACED THE BATTERIES AND VIDEOTAPE IN CAMERAS THAT THEY USE TO MONITOR SOME PARTS OF THE FACILITY END OF INSPECTION OUR AUGUST INSPECTION WAS NOT A GOOD ONE IT WAS SOMETHING WE LAUNCHED UNWISELY SAYS DAVID KYD SPOKESMAN FOR THE IAEA AS THE IAEA NEGOTIATES FOR A FRESH LOOK AT SEVEN DECLARED NUCLEAR SITES AT YONGBYON THE ADMINISTRATION IS AGAIN ACCENTUATING THE POSITIVE MS DAVIS FOR INSTANCE HAS PREDICTED THAT THE AGREEMENT THE US HAS WON FROM NORTH KOREA WILL ALLOW THE IAEA TO TELL THE REST OF THE WORLD THAT THERE ARE NO DANGEROUS ACTIVITIES OCCURRING IN NORTH KOREA WITH RESPECT TO NUCLEAR WEAPONS BUT WHILE OUTSIDE EXPERTS DISAGREE OVER JUST HOW TO HANDLE THE NORTH KOREAN SITUATION THERE IS WIDESPREAD AGREEMENT ON ONE THING IT IS PROBABLY IMPOSSIBLE NOW FOR THE IAEA TO ENSURE ANYTHING LIKE THE LEVEL OF COMFORT THE ADMINISTRATION IS PROMISING DAVID KAY A FORMER CENTRAL INTELLIGENCE AGENCY ANALYST WHO LED UNITED NATIONS INSPECTION TEAMS IN IRAQ SAYS THE POSSIBILITY THAT NORTH KOREA MAY ALREADY HAVE AT LEAST ONE NUCLEAR WEAPON MAKES AN IAEA DECLARATION THAT THERE ARE NO DANGEROUS ACTIVITIES UNDER WAY IN NORTH KOREA EXTREMELY UNLIKELY THE AGREEMENT CALLS FOR THE INSPECTION OF ONLY SEVEN DECLARED SITES NOW NO ONE BELIEVES THAT THE BOMB IS GOING TO BE IN THE BASEMENT OF ANY OF THOSE SITES MR KAY ASSERTS ADMINISTRATION OFFICIALS EXPRESS HOPE THAT FURTHER BARGAINING WILL GAIN IAEA ACCESS INTO OTHER SITES WHERE THEY SUSPECT BOMBMAKING ACTIVITY HAS GONE ON TO THAT ALBERT WOHLSTETTER A SOMETIME PENTAGON CONSULTANT WHO IS CONSIDERED THE DEAN OF US THINKERS ON HOW TO CONTAIN THE SPREAD OF NUCLEAR WEAPONS HAS A SHORT ANSWER THIS IS A JOKE THE ADMINISTRATION MR WOHLSTETTER THINKS HAS VASTLY OVERSOLD THE ABILITY OF IAEA INSPECTIONS TO PENETRATE THE DEEP SECRECY OF NORTH KOREA WHERE STALINIST DOGMA APPROACHES ORWELLIAN LEVELS OF CONTROL A LOT OF THIS STUFF BECOMES A DREAM IF YOU'RE NOT TALKING ABOUT AN OPEN SOCIETY YOU'RE TALKING ABOUT A SOCIETY WHERE WHISTLEBLOWERS COMMIT SUICIDE I REALLY FEEL THAT PEOPLE ARE GETTING OFF THE POINT THE POINT THAT HE AND OTHERS ARE FOCUSING ON IS THAT IF NORTH KOREA HAS THE BOMB OR HAS DRAWN OFF ENOUGH PLUTONIUM FROM ITS PEACEFUL NUCLEAR RESEARCH TO MAKE ONE OR TWO NUCLEAR DEVICES AS THE CIA HAS SUGGESTED THEN THE RELATIONSHIP BETWEEN THE ISOLATED REGIME OF KIM IL SUNG AND ITS NEIGHBORS HAS ALREADY CHANGED AND IAEASTYLE INSPECTIONS WON'T BE ABLE TO REDUCE THE PERCEPTION OF DANGER CRITICS SAY THE EXTRAVAGANT CLAIMS FOR THE IAEA ARE IN KEEPING WITH THE ADMINISTRATION'S UNCERTAIN HANDLING OF THE ENTIRE NORTH KOREAN NUCLEAR ISSUE THE NUCLEAR NONPROLIFERATION TREATY SAYS MR KAY REQUIRES THAT EITHER YOU COMPLETELY GIVE UP YOUR BOMB PROGRAM THE WAY SOUTH AFRICA HAS WITH INTRUSIVE INSPECTIONS TO PROVE YOU HAVE GIVEN IT UP OR ELSE YOU GET OUT OF THE TREATY BUT BY NEGOTIATING INCH BY INCH NORTH KOREA HAS GOTTEN WHAT IT APPARENTLY WANTED MORE TIME TO WORK ON ITS NUCLEAR WEAPONS AND THE MISSILES TO CARRY THEM WITHOUT OUTSIDE INTERFERENCE KONGDAN OH A RAND CORPORATION ANALYST WHO CLOSELY FOLLOWS NORTH KOREA SAYS THAT THE US SHOWED THE WORST ASPECT OF NEGOTIATORS WE SHOWED THEM AMERICANS ARE IMPATIENT FOR RESULTS THEY NORTH KOREANS PLAYED THE GAME MUCH TOUGHER NOW WE LOOK LIKE WE ARE GIVING THINGS AWAY IT'S A VERY SAD SITUATION BY HANGING TOUGH PYONGYANG APPEARS TO HAVE WON THE TERMINATION OF THIS YEAR'S TEAM SPIRIT JOINT EXERCISE BETWEEN US AND SOUTH KOREAN FORCES THIS WAS THE CARROT THAT WAS ORIGINALLY DANGLED BEFORE PYONGYANG AS A LURE TO GET THEM BACK INTO THE TREATY BUT THE PENTAGON DIDN'T ENHANCE IT MUCH BY FAILING TO PUT THE FUNDS FOR THE EXERCISE IN ITS 1994 BUDGET US INTELLIGENCE ESTIMATES SEE NORTH KOREA WITH AT BEST A PRIMITIVE NUCLEAR DEVICE FIRSTGENERATION NUCLEAR WEAPONS WEIGH AT LEAST 1100 POUNDS NORTH KOREA HAS SCUD MISSILES CAPABLE OF CARRYING SUCH A LOAD TO SEOUL AND IS DEVELOPING THE NODONG1 WHICH COULD CARRY SUCH A WARHEAD TO PARTS OF JAPAN NORTH KOREAN ENGINEERS ARE STILL TRYING TO PERFECT THE GUIDANCE SYSTEM FOR THE MISSILE A PROCESS THAT COULD TAKE SEVERAL MORE MONTHS MEANWHILE NORTH KOREA CONTINUES TO LAY THE GROUNDWORK FOR FURTHER DELAYS AT PYONGYANG'S REQUEST THE IAEA HAS TWICE WRITTEN LENGTHY EXPLANATIONS OF WHAT IT WANTS TO INSPECT LAST WEEK NORTH KOREA ASKED FOR A THIRD SO FAR IT HAS REFUSED TO RESUME DIPLOMATIC DIALOGUE WITH SOUTH KOREA BOTH THE INSPECTION AND THE DIALOGUE ARE PREREQUISITES FOR TALKS LEADING TO A PACKAGE SOLUTION OUTLINED BY THE US AFTER US OFFICIALS MADE IT KNOWN LAST WEEK THAT THEY ARE CONSIDERING SENDING PATRIOT AIR DEFENSE MISSILES TO PROTECT PORTS AND AIRFIELDS THAT WOULD BE NEEDED FOR US FORCES TO REINFORCE SOUTH KOREA PYONGYANG ISSUED A STATEMENT SAYING THAT THE REAL REASON FOR THE MISSILES IS TO IMPEDE THE PROGRESS OF THE DPRK NORTH KOREAUS TALKS FOR A FUNDAMENTAL SOLUTION TO THE NUCLEAR ISSUE ACCORDING TO US OFFICIALS THE IAEA CAN END THE IMPASSE BY SIMPLY DECLARING THAT IT CAN NO LONGER ASSURE THE CONTINUITY OF ITS SAFEGUARDS EFFORTS IF THE DELAYS CONTINUE SUCH A STATEMENT IS LIKELY ON FEB 22 WHEN THE AGENCY'S BOARD OF GOVERNORS HOLDS ITS NEXT MEETING THAT WOULD SEND THE MATTER BACK TO THE UN SECURITY COUNCIL WHICH WOULD THEN CONSIDER IMPOSING ECONOMIC SANCTIONS ALTHOUGH US NEGOTIATORS ARE FEELING HEAT FROM THE WHITE HOUSE TO RESOLVE THE NORTH KOREAN PROBLEM SOME SUGGEST THAT THE US SHOULDN'T BE IN SUCH A HURRY RAND'S MS OH FOR EXAMPLE SUGGESTS THAT IT IS NORTH KOREA THAT OUGHT TO FEEL THAT TIME IS RUNNING AGAINST IT WITH THEIR POVERTYSTRICKEN ECONOMY VERGING ON TOTAL COLLAPSE SHE SAYS KIM IL SUNG AND HIS SON AND ANNOINTED SUCCESSOR KIM JONG IL ARE DESPERATE FOR WESTERN AID BUT IF THEY OPEN THEIR ECONOMY TO THE OUTSIDE INFLUENCES THAT COME WITH AID FROM THE WEST MS OH BELIEVES THEIR REGIME WILL COLLAPSE THE COUNTRY THAT HAS TO BE NERVOUS IS NORTH KOREA NOT US SHE INSISTS BUT FOR SOME REASON WE ARE THE NERVOUS PARTY DAVID KAY PREVIOUSLY WAS AN OFFICIAL FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA IN AN ARTICLE YESTERDAY ABOUT INSPECTIONS OF NORTH KOREA'S NUCLEAR SITES MR KAY WAS INCORRECTLY IDENTIFIED AS A FORMER ANALYST FOR THE CENTRAL INTELLIGENCE AGENCY 9401310091 940131 MARKETING & MEDIA IBM HOPES WINTER OLYMPICS AD BLITZ WILL HELP BRIGHTEN ITS CORPORATE IMAGE BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP BRUISED BY DISAPPOINTING SALES AND PROFITS AND MASSIVE JOB CUTS IS LOOKING TO THE WINTER OLYMPICS NEXT MONTH TO BURNISH ITS IMAGE IBM WILL BE A MAJOR SPONSOR OF THE WINTER GAMES IN LILLEHAMMER NORWAY DURING THE 120 HOURS OF TELEVISED COVERAGE FROM FEB 12 TO FEB 27 THE ARMONK NY COMPUTER GIANT AND ONE OF ITS ADVERTISING AGENCIES WELLS RICH GREENE BDDP PRODUCED FOUR CORPORATE ADS EACH STRESSING HOW IBM IS INTEGRAL TO THE OPERATION OF THE OLYMPICS THE CAMPAIGN IS ANOTHER PHASE OF BIG BLUE'S CORPORATE ADVERTISING WHICH FEATURES THE SLOGAN THERE'S NEVER BEEN A BETTER TIME TO DO BUSINESS WITH IBM THE OBJECTIVE OF THE IMAGE ADS IS TO SHOW HOW IBM CAN AID INDIVIDUAL BUSINESSES FOR THE OLYMPIC ADS IBM WILL CHANGE ITS SLOGAN TO GOLD SILVER BRONZE AND BLUE TELLING IBM'S STORY WE'RE TRYING TO TELL THE STORY OF IBM'S UNIQUE INVOLVEMENT WITH THE OLYMPICS SAYS ABBY KOHNSTAMM VICE PRESIDENT OF CORPORATE MARKETING AT IBM WE'RE DIFFERENT THAN ANY OTHER SPONSOR ADDS JED BERNSTEIN EXECUTIVE VICE PRESIDENT AND ACCOUNT GROUP HEAD AT WELLS RICH UNLIKE AN OFFICIAL SOFT DRINK OR OFFICIAL CANDY BAR IBM WAS SELECTED TO HELP MAKE THE OLYMPICS RUN THAT IS REFLECTED IN THE TWO 60SECOND SPOTS BOTH OF WHICH ARE NARRATED BY ACTOR ROY SCHEIDER IN ONE BLACK AND WHITE FOOTAGE IS USED TO RECALL 1952 THE LAST TIME THE WINTER GAMES WERE HELD IN NORWAY BACK THEN SCORES AND STATISTICS WEREN'T KEPT ON ANALOG OR DIGITAL EQUIPMENT THE VIEWER IS TOLD INSTEAD THEY WERE MONITORED AND RECORDED BY ULF ULF SORUM MR SCHEIDER SAYS USED TO PAINSTAKINGLY WRITE DOWN THE MINUTES AND SECONDS OF EACH ATHLETE'S EVENTS AND PLACE THEM IN THE WINDOW OF A LOCAL SHOP THE SCENE CHANGES TO COLOR AND THE VIEWER LEARNS MR SORUM IS NOW IBM OPERATIONS MANAGER HANDLING THE SAME THOUSANDS OF RESULTS IN LESS THAN A SECOND BECAUSE OF IBM EQUIPMENT THE AD INCLUDES SHOTS OF DOWNHILL SKIING AMONG OTHER EVENTS ALL THE WHILE MR SORUM IS CHEERING AS STATISTICIANS WORK AT IBM COMPUTERS THE IDEA FOR THE SPOTS IS TO TAKE THE BEHINDTHESCENE PEOPLE AND MAKE THEIR PERFORMANCES AS EXCITING AS THE EVENTS THEMSELVES SAYS CHARLIE MOSS VICE CHAIRMAN AND CORPORATE CREATIVE DIRECTOR AT WELLS RICH ANOTHER SPOT BOASTS THAT FAR AHEAD OF THE ATHLETES DESCENDING UPON THE OLYMPIC VILLAGE IBM EMPLOYEES PLAN AND DESIGN EVERY EVENT TO ACTUALLY HELP AND MANAGE THE WINTER GAMES IS THE EQUIVALENT OF TWO SUPER BOWLS A DAY FOR 16 DAYS THE AD CAMPAIGN IS A WAY TO DEMONSTRATE IBM'S CAPABILITIES SAYS MS KOHNSTAMM A NEW POSTOLYMPICS CORPORATE CAMPAIGN MAY BE PRODUCED SHE SAYS BUT THOSE PLANS HAVEN'T BEEN PUT IN MOTION PERHAPS THE NEXT NEW ADVERTISING FROM IBM IS THE MOST ANTICIPATED THE PERSONAL COMPUTER CAMPAIGN FROM MERKLEY NEWMAN HARTY WHICH WON THE COVETED DOMESTIC ADVERTISING ACCOUNT LAST YEAR FROM INTERPUBLIC GROUP'S LINTASNEW YORK 9401310090 940131 MARKETING & MEDIA DOW JONES EDITOR SEEK TO GET REPORTS ON FOSTER'S DEATH BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND ROBERT BARTLEY EDITOR OF THE NEWSPAPER ASKED A FEDERAL COURT TO FORCE THE RELEASE OF REPORTS ON WHITE HOUSE LAWYER VINCENT FOSTER'S DEATH IN A LAWSUIT AGAINST THE JUSTICE DEPARTMENT FILED FRIDAY IN US DISTRICT COURT IN NEW YORK DOW JONES AND MR BARTLEY WHO OVERSEES THE EDITORIAL AND RELATED PAGES SAID THE AGENCY HAS CONSTRUCTIVELY AND IMPROPERLY DENIED THEIR FREEDOM OF INFORMATION ACT REQUEST FOR THE DOCUMENTS MR FOSTER WAS DEPUTY WHITE HOUSE COUNSEL WHEN HE APPARENTLY SHOT HIMSELF IN A PARK OUTSIDE WASHINGTON ON JULY 20 THE US PARK POLICE RULED IT A SUICIDE USING THE FOIA MR BARTLEY ON AUG 18 REQUESTED REPORTS PREPARED BY THE POLICE AND THE FEDERAL BUREAU OF INVESTIGATION THE REPORTS ARE RECORDS OF SUBSTANTIAL PUBLIC INTEREST AND SHOULD BE AVAILABLE TO THE PRESS AND PUBLIC FOR REVIEW AND DISCUSSION THE SUIT CONTENDS LAST WEEK THE NEW YORK POST REPORTED THAT EMERGENCY PERSONNEL RESPONDING TO MR FOSTER'S DEATH SAID THE WAY THEY FOUND HIM HOW HE WAS LYING THE LOCATION OF THE GUN AND THE AMOUNT OF BLOOD WASN'T NECESSARILY CONSISTENT WITH SUICIDE FEDERAL OFFICIALS SAID THE DEATH WAS PROBED BY THE POLICE AND A TORNUP NOTE APPARENTLY WRITTEN BY MR FOSTER AND FOUND IN HIS BRIEFCASE WAS INVESTIGATED BY THE FBI THAT NOTE WHICH SHOWED MR FOSTER UPSET BY A VARIETY OF THINGS INCLUDED THE SENTENCE THE WSJ EDITORS LIE WITHOUT CONSEQUENCE THE JOURNAL HAD RUN SEVERAL EDITORIALS CRITICIZING MR FOSTER'S ROLE IN THE WHITE HOUSE SINCE HIS DEATH WHITE HOUSE OFFICIALS HAVE REVEALED THAT HIS OFFICE CONTAINED PAPERS CONCERNING THE WHITEWATER DEVELOPMENT CORP INVESTMENT BY BILL AND HILLARY RODHAM CLINTON THOSE PAPERS HAVE BEEN SUBPOENAED BY THE JUSTICE DEPARTMENT AND MATTERS RELATING TO THE INVESTMENT ARE BEING INVESTIGATED BY AN INDEPENDENT COUNSEL APPOINTED BY THE ATTORNEY GENERAL JUSTICE DEPARTMENT SPOKESMAN CARL STERN SAID THE AGENCY IS DOING THE BEST WE CAN TO COMPLY WITH FOIA REQUESTS SOME OF THE MATERIAL WAS CLOSE TO BEING RELEASED MR STERN SAID BUT THE APPOINTMENT OF AN INDEPENDENT COUNSEL REQUIRED US TO ASCERTAIN FROM HIM WHETHER THE MATERIAL MIGHT BE EVIDENCE IN HIS INVESTIGATION AND WHETHER ITS RELEASE WOULD INTERFERE WITH HIS WORK 9401310089 940131 INTERNATIONAL BANK OF SPAIN SEES BANESTO RESTORED SOLD BY YEAR END BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID BANCO ESPANOL DE CREDITO THE BIG COMMERCIAL BANK THAT WAS TAKEN OVER BY THE BANK OF SPAIN ON DEC 28 WILL BE RESTORED TO FINANCIAL HEALTH BY THE END OF THE YEAR AND SOLD TO ONE OR MORE SPANISH BANKS SAID BANK OF SPAIN'S GOVERNOR APPEARING ON NATIONAL TELEVISION AFTER SPAIN'S FIVE BIGGEST BANKS AGREED ON A RESCUE PLAN FOR BANESTO AS THE TROUBLED BANK IS CALLED LUIS ANGEL ROJO SAID THE BANK'S 605 BILLIONPESETA 433 BILLION FINANCIAL SHORTFALL WILL BE COVERED THROUGH ASSET SALES OF 285 BILLION PESETAS AND A WRITEDOWN OF CAPITAL AND RESERVES OF 320 BILLION PESETAS THAT WILL REDUCE THE NOMINAL VALUE OF BANESTO SHARES TO 400 PESETAS FROM 700 PESETAS EACH HE SAID TO RECAPITALIZE BANESTO THE DEPOSITGUARANTEE FUND WILL SUBSCRIBE TO A 180BILLIONPESETA RIGHTS ISSUE LATER AUCTIONING OFF ITS SHAREHOLDING IN THE BANK CURRENT SHAREHOLDERS WILL BE ENCOURAGED TO PARTICIPATE IN THE CAPITAL INCREASE MR ROJO SAID THE RESCUE PLAN SIGNIFIES A BIG SACRIFICE FOR SHAREHOLDERS HE ACKNOWLEDGED BUT IT ALSO SIGNIFIES A BIG SACRIFICE FOR THE REST OF THE COUNTRY WHICH IS GOING TO HAVE TO PUT UP 285 BILLION PESETAS TO COVER BANESTO'S SOCALLED SHORTFALL UNDER THE COMPLEX PLAN WHICH SHAREHOLDERS WILL BE ASKED TO APPROVE IN MIDMARCH BANESTO WILL WRITE OFF RESERVES OF 244 BILLION PESETAS AND WRITE DOWN CAPITAL BY 49 BILLION PESETAS THE BANK WILL ALSO MAKE DEFERRED PROVISIONS OF 27 BILLION PESETAS BRINGING ITS TOTAL CONTRIBUTION TO THE BAILOUT PROGRAM TO 320 BILLION PESETAS ACCORDING TO THE BANK OF SPAIN THE DEPOSITGUARANTEE FUND WILL PROVIDE THE BANK'S ADDITIONAL FUNDING NEEDS BY ACQUIRING 285 BILLION PESETAS WORTH OF BANESTO'S ASSETS THE CENTRAL BANK SAID WHILE THE BANK OF SPAIN DIDN'T SPECIFY HOW THE DEPOSITGUARANTEE FUND IS TO BE FINANCED BANKERS SAID SPANISH COMMERCIAL BANKS WILL GRANT IT A 600 BILLIONPESETA LOAN AT MARKET RATES TO ENABLE IT TO ACQUIRE ASSETS FOR THE SAME VALUE FROM BANESTO OF THIS AMOUNT ALL BUT 285 BILLION PESETAS IN BAD LOANS WILL BE RECOVERED WHEN THE ASSETS ARE LIQUIDATED THE BANKERS SAID THE FUND WILL EVENTUALLY FINANCE HALF OF THE REMAINING 285 BILLION PESETAS WITH MONEY FROM THE BANKS' ANNUAL CONTRIBUTIONS WHICH WILL BE RAISED TO 02 OF THEIR OWN DEPOSITS FROM ITS CURRENT 015 AS A RESULT BANKS WILL PAY INTO THE FUND ABOUT 35 BILLION PESETAS A YEAR OR JUST OVER 140 BILLION PESETAS IN FOUR YEARS THE BANK OF SPAIN SAID IT WILL PROVIDE AN ADDITIONAL 1425 BILLION PESETAS OVER A PERIOD OF SEVERAL YEARS ONCE BANESTO HAS BEEN RECAPITALIZED THROUGH THE 180 BILLIONPESETA SHARE ISSUE IT WILL BE AUCTIONED OFF AS QUICKLY AS POSSIBLE AND IN ANY CASE WITHIN A YEAR WITH THE AUTHORITIES DECIDING IN FAVOR OF THE OFFER THAT PRESENTS THE MOST ADVANTAGEOUS CONDITIONS FOR ACQUISITION THE BANK OF SPAIN SAID NEWS THAT BANESTO WILL BE UP FOR SALE SET OFF A WHIRL OF RUMORS IN MADRID OVER WHICH OF THE FIVE BIG BANKS WOULD MAKE A BID FOR IT SINCE MOST OF BANESTO'S CURRENT MANAGEMENT TEAM IS ON LOAN FROM BANCO BILBAO VIZCAYA OR BBV THE BASQUE BANK HAS BEEN HIGH ON THE LIST OF POSSIBLE CANDIDATES FURTHERMORE ACQUIRING BANESTO WOULD ENABLE BBV TO RECAPTURE ITS POSITION AS SPAIN'S BIGGEST BANK LOST WHEN BANCO CENTRAL HISPANO AROSE THROUGH A MERGER THREE YEARS AGO BUT BBV IS STILL STRUGGLING TO CLOSE OVERLAPPING BRANCH OFFICES INHERITED FROM ITS OWN MERGER SIX YEARS AGO IN FACT BECAUSE ITS TOPLEVEL MANAGEMENT WAS DUPLICATED THROUGH THE MERGER BBV WAS ABLE TO DONATE EXECUTIVES TO BANESTO'S BAILOUT EFFORT THE MOST LIKELY CANDIDATE MANY ANALYSTS THINK IS BANCO SANTANDER ONE OF SPAIN'S MOST PROFITABLE BANKS A LINKUP WITH A FULLY RECOVERED BANESTO WOULD ENABLE SANTANDER TO BECOME THE LEADING PLAYER IN SPANISH BANKING ANOTHER POSSIBLE CANDIDATE IS ARGENTARIA CORP BANCARIA DE ESPANA SA THE STATECONTROLLED BANKING GROUP THAT WAS CREATED IN 1991 DESPITE ITS SOLID FINANCIAL HEALTH THOUGH ARGENTARIA IS LIKELY TO SHY CLEAR OF BANESTO AS IT SEEKS TO BREAK ALL TIES WITH ITS PAST ROLE AS A TOOL OF GOVERNMENT POLICY ANALYSTS SAID ON FRIDAY MARIO CONDE APPEALED THE BANK OF SPAIN'S DECISION A MONTH EARLIER TO REMOVE HIM AS CHAIRMAN OF BANESTO MR CONDE AND SEVERAL FORMER BANESTO BOARD MEMBERS FILED AN APPEAL WITH THE MINISTRY OF ECONOMY ALLEGING THAT THE BANK OF SPAIN EXAGGERATED THE BANK'S FINANCIAL WOES IN ORDER TO TAKE OVER THE BANK MR CONDE AND JP MORGAN & CO THE US BANK THAT HELPED ARRANGE A 95BILLIONPESETA CAPITAL INCREASE FOR BANESTO LAST YEAR PUT THE BANK'S FINANCIAL SHORTFALL AT 2645 BILLION PESETAS BANESTO'S AUDITORS HOWEVER ESTIMATE THAT THE BANK IS SUFFERING A SHORTFALL OF 605 BILLION PESETAS 9401310088 940131 AUTO CASH REBATES ARE FAST GOING WAY OF THE RUMBLE SEAT AS INDUSTRY RECOVERS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE 1000 OR 2000 CASHBACK PROMOTION FOR BUYING A NEW CAR PROBABLY WILL ALL BUT DISAPPEAR THIS YEAR AUTO EXECUTIVES AND DEALERS SAY THAT'S BECAUSE THE STRENGTHENING ECONOMY IS EXPECTED TO CONTINUE TO SPUR RISING DEMAND FOR NEW CARS AND LIGHT TRUCKS AND BECAUSE LEASING PROMOTIONS HAVE LARGELY SUPPLANTED REBATES AS A MARKETING TOOL MOREOVER EACH OF THE DOMESTIC MANUFACTURERS IS UNVEILING A SERIES OF NEW PRODUCTS THIS YEAR THAT ARE EXPECTED TO SELL WITHOUT REBATES THE FADEOUT OF REBATES IS CLEARLY GOOD NEWS FOR CAR COMPANIES WHICH DURING THE PAST YEAR HAVE BEGUN CUTTING BACK ON THE INCENTIVES AND CARRYING THE EXTRA DOLLARS THEY DON'T PAY OUT IN REBATES STRAIGHT TO THEIR BOTTOM LINES GENERALLY HIGHER PRICES FOR CAR BUYERS THIS MEANS GENERALLY HIGHER PRICES AND SOME DEALERS REPORT SELLING CERTAIN HIGHDEMAND MODELS ABOVE STICKER PRICES BUT INDUSTRY OFFICIALS AND CAR DEALERS ATTENDING THE NATIONAL AUTO DEALERS ASSOCIATION ANNUAL CONVENTION HERE SAY STIFF COMPETITION AMONG DEALERS IS LIKELY TO KEEP PRICES FROM GETTING TOO FAR OUT OF LINE J DAVID POWER THE PRESIDENT OF CONSULTING GROUP JD POWER & ASSOCIATES IS WARNING DEALERS HERE FOR THAT REASON NOT TO EXPECT THE SORT OF FAT PROFITS THEY WERE ABLE TO RACK UP DURING PAST RECOVERIES ANOTHER PART OF THE EQUATION EXECUTIVES AND DEALERS MAINTAIN IS THAT THE INDUSTRY IS MOVING TO SET MORE REALISTIC STICKER PRICES IN THE FIRST PLACE MAKING REBATES AND DEEP DISCOUNTS LESS NECESSARY OVER THE WEEKEND GENERAL MOTORS CORP DISCLOSED THAT A STATEWIDE EXPERIMENT IN CALIFORNIA WITH SUCH PRICING HELPED IT WIN MARKET SHARE FROM THE JAPANESE AUTO MAKERS IN THE FOURTH QUARTER OF 1993 TO BE SURE THERE ARE STILL A FEW SIZABLE REBATES AROUND THEY ARE MOSTLY ON OLDER MODELS THAT ARE BEING PHASED OUT AND ON SOME SLOWERSELLING VEHICLES IMPORTED BY JAPANESE AUTO MAKERS WHICH BECAUSE OF THE STRONG YEN FACE PRICE DISADVANTAGES OF ABOUT 2000 A CAR BUT THE EXPECTED DECLINE OF REBATES MARKS A SHARP SWITCH FROM THE MARKETING STRATEGIES OF RECENT YEARS PARTICULARLY FOR THE REBATEHAPPY BIG THREE AUTO MAKERS WE TRAINED PEOPLE TO EXPECT REBATES CONCEDES ROY ROBERTS A GENERAL MOTORS VICE PRESIDENT WHO IS GENERAL MANAGER OF THE GMC TRUCK DIVISION NOW WE WILL HAVE TO UNTRAIN THEM HIS DIVISION ALREADY HAS DROPPED ALMOST ALL ITS CASHBACK PROMOTIONS SO HAS GM'S HUGE CHEVROLET DIVISION WE USED TO PUT 750 ON THE HOOD OF EVERY FULLSIZED PICKUP SAYS JIM C PERKINS THE CHEVY GENERAL MANAGER BUT WE HAVEN'T HAD A REBATE ON THEM IN OVER A YEAR HE ADDS THAT AFTER CHEVY INTRODUCES ITS NEW CAVALIER SUBCOMPACTS MONTE CARLO COUPES AND LUMINA SEDANS LATER THIS YEAR BUYERS WILL BE HARDPRESSED TO FIND A REBATE ON CHEVIES THE BIG CASHBACK INCENTIVES ARE DWINDLING AWAY THIS YEAR SAYS ROBERT L REWEY FORD MOTOR CO'S SALES AND MARKETING CHIEF ADDS ALEX J TROTMAN FORD'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER LAST YEAR WE HAD FIVE VEHICLES WITH NO INCENTIVES ON THEM THIS YEAR WE HOPE IT'LL BE 10 CAR DEALERS SAY THEY ARE VERY HAPPY TO SEE REBATES DISAPPEARING WE'RE GETTING AWAY FROM THE ENORMOUS DISCOUNTS AND REBATES WHICH HAVE HURT OUR CREDIBILITY SAYS GERALD J SEINER A SALT LAKE CITY DEALER WHO SELLS GM NISSAN MITSUBISHI AND OTHER PRODUCTS THAT IS THE THINKING BEHIND THE INDUSTRY'S EXPERIMENTS WITH VALUE PRICING THE PRACTICE OF OFFERING CARS EQUIPPED WITH A POPULAR PACKAGE OF OPTIONAL EQUIPMENT FOR A LOWER STICKER PRICE THAN IF A CUSTOMER ORDERED EACH ITEM SEPARATELY SUCH PACKAGES TYPICALLY HAVE A LOWER DEALER PROFIT MARGIN BUILT INTO THE PRICE ON THE THEORY THAT CUSTOMERS WILL VIEW THE STICKER PRICE AS A BARGAIN AND DO VERY LITTLE DICKERING IN AN EFFORT TO REVERSE ITS SLIDE IN THE CALIFORNIA MARKET GM LAST YEAR LAUNCHED A BROAD EXPERIMENT WITH SUCH PRICING OFFERING 46 VALUEPRICED CAR AND TRUCK MODELS IN CALIFORNIA COMPARED WITH 23 NATIONALLY DURING THE FINAL THREE MONTHS OF 1993 GM SAID ITS RETAIL SALES EXCLUDING FLEET SALES IN CALIFORNIA ROSE 306 COMPARED WITH A TOTALINDUSTRY RISE OF JUST 75 GM SAID ITS RETAIL SALES NATIONALLY ROSE 181 DURING THE SAME PERIOD I COULDN'T BE MORE PLEASED WITH THE WAY IT HAS STARTED SAYS J MICHAEL LOSH A GM VICE PRESIDENT WHO IS GM'S CHIEF OF NORTH AMERICAN SALES SERVICE AND MARKETING WE'RE CONVINCED THIS IS THE WAY TO GO THAT IS SHOWING UP IN OUR RESULTS NATIONWIDE GM SAID ITS SHARE OF THE CALIFORNIA RETAIL MARKET IN THE FOURTH QUARTER ROSE 38 PERCENTAGE POINTS TO 215 FORD GAINED JUST OVER ONE PERCENTAGE POINT TO 25 CHRYSLER LOST LESS THAN A POINT TO 99 AND IMPORTS AS A GROUP MOSTLY JAPANESE DROPPED 42 POINTS TO 436 ACCORDING TO GM 9401310087 940131 SHORT INTEREST IN NASDAQ STOCKS HITS NEW HIGH INCREASE IS 12TH IN A ROW APPLE TOTAL UP 1371 IN MONTH ENDED JAN 14 BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NASDAQ STOCK MARKET A GENERALLY BEARISH INDICATOR SET A RECORD FOR THE 12TH CONSECUTIVE MONTH IN MIDJANUARY JUMPING 15 TO 6824 MILLION SHARES FROM MIDDECEMBER'S 672 MILLION THE YEARLONG CLIMB IN UNCOVERED SHORT POSITIONS IS A GROWING INDICATOR THAT INVESTORS ARE EXPECTING A LARGE NUMBER OF NASDAQ STOCKS FROM GIANTS SUCH AS MCI COMMUNICATIONS CORP INTEL CORP AND APPLE COMPUTER INC TO MIDSIZE COMPANIES SUCH AS CANADIAN SOFTDRINK MAKER COTT CORP TO FALL APPLE FOR EXAMPLE SAW ITS SHORTINTEREST POSITION SURGE 1371 TO 62 MILLION SHARES FROM 26 MILLION A MONTH EARLIER MARKING THE LARGEST VOLUME INCREASE ON NASDAQ FOR THE PERIOD SHORT SALES ARE BETS THAT A STOCK WILL TUMBLE AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT AND NOT YET COVERED THIS MONTH'S FIGURES REPRESENT SALES REPORTED AS OF JAN 4 AND SETTLED AS OF JAN 14 SHORT INTEREST ON THE NASDAQ NATIONAL MARKET COMPRISING THE LARGERCAPITALIZATION ISSUES CLIMBED LESS THAN 1 TO 6353 MILLION SHARES FROM 6304 MILLION A MONTH EARLIER TELECOMMUNICATIONS TECHNOLOGY AND CONSUMER NONDURABLE STOCKS WERE AGAIN AMONG THOSE WITH THE LARGEST SHORT POSITIONS SHORT SELLING AMONG THE SMALLCAPITALIZATION STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET CLIMBED 13 TO 471 MILLION SHARES FROM 416 MILLION A MONTH EARLIER THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDJANUARY FELL TO 226 FROM 257 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS ROSE TO 092 FROM 087 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS VIEWED AS A MEASURE OF TRADER SENTIMENT AMONG THE COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS AMERICAN POWER CONVERSION CORP'S FELL 5 TO 122 MILLION SHARES COMCAST CORP'S CLASS A SPECIAL SHARES JUMPED 133 TO 118 MILLION SHARES MCI'S ROSE 29 TO 99 MILLION SHARES WHILE SNAPPLE BEVERAGE CORP'S FELL 32 TO 98 MILLION FOLLOWING APPLE THE NASDAQ STOCKS WITH THE LARGEST VOLUME INCREASE IN SHORT INTEREST WERE TELECOMMUNICATIONS GROUPS LM ERICSSON TELEPHONE CO WHICH TRADES AS AN AMERICAN DEPOSITARY RECEIPT AND LDDS COMMUNICATIONS INC ERICSSON'S SHORT INTEREST SOARED TO 35 MILLION SHARES FROM 11455 A MONTH AGO WHILE LDDS' POSITION MORE THAN DOUBLED TO 54 MILLION SHARES FROM 24 MILLION THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDJANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDDECEMBER SEE ACCOMPANYING TABLE WSJ JAN 31 1994 9401310086 940131 SAINSBURY STOCK OFF 96 ON NEWS OF SALES DECLINE SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH SUPERMARKET CHAIN J SAINSBURY PLC WAS LATE GETTING INTO THE DISCOUNTING GAME AND THAT'S WHAT LED TO THE DISAPPOINTING SALES FIGURES THE COMPANY REPORTED FRIDAY INDUSTRY ANALYSTS SAID SAINSBURY STOCK SANK 96 TO FINISH AT 395 PENCE 596 IN LONDON TRADING FOLLOWING ITS REPORT THAT SALES IN STORES OPEN AT LEAST ONE YEAR FELL 1 IN THE 16WEEK PERIOD ENDED JAN 15 SAINSBURY THE UNITED KINGDOM'S BIGGEST GROCER WAS SLOW TO REALIZE THAT QUALITY ALONE NO LONGER CREATES LOYAL CUSTOMERS IN THE FOOD BUSINESS ANALYSTS SAID THE COMPANY MADE A CRUCIAL ERROR IN BELATEDLY ACCEPTING THAT LOWER FOOD PRICES ARE A PERMANENT PHENOMENON RATHER THAN A QUIRK OF ECONOMIC RECESSION EVERYONE IS AWARE NOW THAT IF THEY SHOP AROUND THEY CAN FIND CHEAP FOOD SAID NIGEL DAVIES ANALYST AT ROBERT FLEMING SECURITIES LTD THAT'S FASHIONABLE NOW IT DIDN'T USED TO BE HIGHER SALES SOME ANALYSTS HAD EXPECTED ABOUT A 3 GAIN HAD BEEN EXPECTED TO MAKE UP FOR THE LOWER GROSS PROFIT MARGINS RESULTING FROM SAINSBURY'S ESSENTIAL FOR ESSENTIALS CAMPAIGN SAINSBURY LAUNCHED THE PERMANENT PRICE CUTS ON A WIDE VARIETY OF BASIC FOODS AFTER ITS MARKET SHARE CAME UNDER ATTACK FROM A STRING OF COMPETITORS ALREADY ENGROSSED IN A PRICE WAR INSTEAD GROSS MARGIN FELL ALONG WITH SALES SAINSBURY DOESN'T DIVULGE EXACT PROFIT MARGINS BUT SAID ITS GROSS MARGIN DECLINED 04 THE COMPANY SAID IT DOESN'T EXPECT MARGINS TO DECLINE FURTHER ANALYSTS WHO FOLLOW SAINSBURY WERE CUTTING PROFIT FORECASTS FOR THE CURRENT FISCAL YEAR AND FOR FISCAL 1995 TO INCLUDE ACCOUNTING CHANGES DEPRECIATION COSTS AND CURRENT TRADING CONDITIONS DISCLOSED IN FRIDAY'S REPORT SAINSBURY SAID IT WILL TAKE 365 MILLION 550 MILLION OFF ITS PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 1994 TO REFLECT EXCESS PROPERTY COSTS AND THE REDUCTION IN THE VALUE OF SURPLUS AND NONTRADING PROPERTIES ANALYSTS ARE REVISING THEIR CURRENTYEAR FORECASTS FOR ONGOING PRETAX PROFIT TO ABOUT 740 MILLION FROM 800 MILLION THE FORECASTS DON'T INCLUDE THE ONETIME 365MILLION WRITEOFF THE DECLINE REFLECTS AN EXPECTED 40 MILLION CUT FOR DEPRECIATION COSTS AND ADDITIONAL DOWNGRADING TO SHOW LOWER SALES AND GROSS PROFIT MARGIN EXPECTATIONS FOR THE FOLLOWING YEAR ANALYSTS EXPECT 45 MILLION IN DEPRECIATION COSTS THEY'RE ALSO CUTTING AN ADDITIONAL 100 MILLION TO 135 MILLION OFF THE ONGOING PRETAX PROFIT TO ACCOUNT FOR WEAKER TRADING THE CONSENSUS HAD BEEN AROUND 850 MILLION 9401310085 940131 GLOBAL VIEW STATE OF THE UNION OR STATE OF HUBRIS BY GEORGE MELLOAN PRESIDENT WILLIAM JEFFERSON CLINTON GAVE A BARNBURNER OF A STATE OF THE UNION SPEECH JUDGING FROM THE GLIMPSES AVAILABLE TO THOSE OF US WHO LIVE ABROAD THIS IS A PRESIDENT WHO FEELS HE IS ON A ROLL AN ATTITUDE THAT ANY FOOTBALL COACH COULD TELL HIM IS FRAUGHT WITH DANGER FOR THAT MATTER GEORGE BUSH COULD WARN THAT BEING POPULAR AFTER ONE YEAR IN OFFICE GUARANTEES NOTHING AT ALL MR BUSH EMPLOYED A SPLENDID MILITARY ORGANIZATION INHERITED FROM HIS PREDECESSOR TO WIN A WAR OF VITAL IMPORTANCE TO OILCONSUMING NATIONS HIS POLL RATINGS SOARED MR CLINTON HAD THE GOOD LUCK TO GAIN THE OVAL OFFICE AT THE ONSET OF ECONOMIC RECOVERY THANKS TO CONGRESS HE DID NO SERIOUS DAMAGE TO THE UPSWING IN HIS FIRST YEAR IT IS PERHAPS TOO MUCH TO ASK OF ANY POLITICIAN THAT HE NOT TAKE CREDIT FOR ANYTHING GOOD THAT HAPPENS ON HIS WATCH SO AMERICANS WILL JUST HAVE TO GRIN AND BEAR IT WHILE MR CLINTON BOASTS ABOUT HOW HE RESTORED PROSPERITY THE WHITE HOUSE DISPLAYING A REMARKABLE TALENT FOR COURTING TROUBLE CHASTISED EDITORS OF THE WASHINGTON POST LAST YEAR FOR QUOTING A DREYFUS CORP ECONOMIST AS SAYING THAT THE ECONOMIC RECOVERY WOULD HAVE OCCURRED EVEN IF BUGS BUNNY HAD BEEN ELECTED PRESIDENT AT LEAST THE MAN DIDN'T SAY BUGS BUNNY WOULD HAVE DONE BETTER SO WHAT WAS ALL THE FUSS ABOUT INDEED MR CLINTON AFTER BEGINNING HIS TERM MAKING SCARY PROTECTIONIST NOISES DID SOME POSITIVE THINGS FOR THE ECONOMY STIFFARMING ORGANIZED LABOR HE PUT HIS WEIGHT BEHIND THE NAFTA AND URUGUAY ROUND TRADE LIBERALIZATION DEALS THUS REESTABLISHING THE PRINCIPLE THAT AMERICA IS ESSENTIALLY A FREE TRADE COUNTRY CLEARLY THE VOTERS APPROVED OPINION POLLS SHOW IT WAS AN IMPORTANT VICTORY OVER ROSS PEROT DICK GEPHARDT AND THEIR ILK THE PRESIDENT ALSO SET AL GORE TO WORK REINVENTING GOVERNMENT AND IF ANY SIGNIFICANT ECONOMIC DEREGULATION OR PAPERWORK REDUCTION COMES OF IT THE CLINTONGORE TEAM WILL DESERVE FURTHER APPLAUSE WITH THOSE ACHIEVEMENTS BEHIND HIM MR CLINTON IS IN REMARKABLY GOOD SHAPE POLITICALLY FOR A PRESIDENT WHOSE RECORD OTHERWISE IS STREWED WITH BROKEN CROCKERY THE BEDROOM AND BOARDROOM SHENANIGANS OF HIS ARKANSAS PAST ARE NOT GOING TO BE BRUSHED ASIDE AS EASILY AS THE PRESIDENT'S SPIN DOCTORS HAD HOPED HIS FOREIGN POLICY TEAM IS SO WEAK THAT AMERICANS CAN ONLY HOPE THAT NO REALLY SERIOUS THREAT TO US SECURITY PRESENTS ITSELF IN 1994 THE FRENCH HAVE BEEN AWARDED NATO AND THE RUSSIANS AN INVITATION TO RESTORE THE OLD SOVIET EMPIRE SOMALIAN AND HAITIAN MOBS FACED DOWN THE US MILITARY BOSNIA CONTINUES TO BLEED AND NORTH KOREA BUILDS BOMBS WITH IMPUNITY BUT AS EVERY POLITICIAN KNOWS AN ECONOMIC RECOVERY CAN DO WONDERS TO KEEP THE VOTERS CONTENT JUDGING FROM OPINION POLLS AND INFORMAL SAMPLINGS OF VOTER ATTITUDES MOST AMERICANS WILL OVERLOOK THE PRESIDENT'S SHORTCOMINGS SO LONG AS THE RECOVERY CONTINUES WHICH IS OF COURSE THE CRUCIAL QUESTION WILL IT CONTINUE THE SHORT ANSWER IS THAT YES IT PROBABLY WILL AT LEAST THROUGH MOST OF THIS YEAR UNLESS THERE IS AN OUTBURST OF INFLATION OR A STOCK MARKET CRASH OR BOTH ECONOMIC CYCLES ARE POWERFUL THINGS IT TOOK THIS ONE A LONG TIME TO GET ROLLING BUT IT NOW HAS SOME STEAM AS WAS EVIDENCED BY THE NEARLY 6 GROWTH RATE IN THE FOURTH QUARTER LAST YEAR THE ASSET DEFLATION THAT LET THE AIR OUT OF REAL ESTATE VALUES AND LEFT HOMEOWNERS AND THEIR BANKERS FEELING POOR AS THE DECADE BEGAN HAS MOSTLY RUN ITS COURSE FROM ALL APPEARANCES HOUSEHOLD AND BANK BALANCE SHEETS ARE HEALTHIER AND CONSUMERS ARE CONFIDENT AGAIN AS IS EVIDENCED BY VIGOROUS SPENDING FOR USED HOMES AND NEW AUTOS THE INFLATION RATE IS LOW AND THE STOCK MARKET IS ZOOMING UPWARD AS THE DREYFUS MAN SAID BILL CLINTON HAD ABSOLUTELY NOTHING TO DO WITH ANY OF THIS GEORGE BUSH DIDN'T HAVE MUCH TO DO WITH IT EITHER BUT NEITHER OF THEM HAVE INTERFERED SERIOUSLY IN THE LAST TWO YEARS WITH THE FORCES THAT BROUGHT IT ABOUT FORCES THAT INCLUDED VIGOROUS STEPS BY BUSINESS MANAGERS TO REORGANIZE THEIR COMPANIES TO SHARPLY IMPROVE PRODUCTIVITY MR CLINTON'S TAX INCREASES WILL DIMINISH INCENTIVES FOR SOME OF THE COUNTRY'S MOST PRODUCTIVE CITIZENS AND WILL IMPACT RETIREES BUT HIS TAX AND SPENDING AMBITIONS WERE SUFFICIENTLY MODIFIED BY CONGRESS TO LIMIT DAMAGE TO THE 1993 RECOVERY YET IT IS AT THE VERY MOMENT OF UNDESERVED TRIUMPHS THAT A PRESIDENT SHOULD BE MOST WORRIED IT IS NEXT YEAR'S STATE OF THE UNION ADDRESS THAT HE SHOULD BE THINKING ABOUT NOW HOW THE VOTERS FEEL THEN AND IN THE YEAR AFTER WILL BE THE REAL TEST OF HIS PRESIDENCY ON THAT SCORE THE PRESIDENT'S ADDRESS LAST WEEK WAS NOT ESPECIALLY ENCOURAGING HIS PROMISE TO PUT ALL THE MAJESTY OF HIS OFFICE BEHIND HIS NATIONAL HEALTH PLAN AND WIELD THE VETO IF HE DOESN'T GET WHAT HE WANTS HAS SPECIAL RESONANCE IN EUROPE HERE THERE IS EVERY REASON TO WONDER WHY A PRESIDENT SEEKING CURES SHOULD BE EMBRACING THE DISEASE WESTERN EUROPE'S NATIONAL ECONOMIES ARE WALLOWING IN RECESSION AND DEBT WITH UNEMPLOYMENT HOVERING AROUND 11 THE ONE THING THAT DISTINGUISHES THESE WELFARE STATES FROM THE US WELFARE STATE IS NATIONAL HEALTH THEY ALREADY HAVE THE KIND OF ALLENCOMPASSING GOVERNMENTCONTROLLED BUREAUCRATIC HEALTH CARE SYSTEMS THE PRESIDENT SEEKS IN THE US ONLY ABOUT 40 OF HEALTH CARE IS GOVERNMENT CONTROLLED THROUGH MEDICARE FOR THE ELDERLY AND MEDICAID FOR THE NEEDY IF YOU ASK EUROPEANS HOW THEY FEEL ABOUT FREE HEALTH CARE MANY WILL SAY IT'S NICE UNLESS THEY HAVE BEEN IN AN ITALIAN HOSPITAL LATELY OR BEEN PUT ON A SIXMONTHS WAITING LIST FOR SURGERY IN ENGLAND IF YOU ASK THEM HOW THEY FEEL ABOUT HIGH TAXES AND INSOLVENT GOVERNMENTS THEY SAY IT'S TERRIBLE YET THE TWO THINGS ARE INEXTRICABLY LINKED FOR EXAMPLE NATIONAL HEALTH SWALLOWS SOME 40 OF ITALY'S DIRECT TAXATION EVEN THOUGH HALF THE COUNTRY NOW RESORTS TO PRIVATE CARE PART OF THE TIME EUROPE'S POLITICIANS KNOW THAT NATIONAL HEALTH ISN'T FREE EVERY WESTERN EUROPEAN GOVERNMENT IS TRYING TO CUT ITS COSTS COURTING UNPOPULARITY IN THE PROCESS SWEDEN IS TRYING TO TOTALLY OVERHAUL THE WELFARE STATE TO STAVE OFF NATIONAL BANKRUPTCY TO PAY FOR NATIONAL HEALTH MR CLINTON PROMISES TO REFORM THE AMERICAN SYSTEM OF WELFARE DOLES IT'S A TIDY IDEA BUT LOTS OF LUCK STATE GOVERNORS FIGURE HE WILL SIMPLY DUMP MOST OF THE COST ON THEM AN ARKANSAS STATE TROOPER HAS BEEN QUOTED AS HAVING HEARD THE FORMER GOVERNOR SAY HE HAD NEVER MET A TAX HE DIDN'T LIKE COME BACK TO EUROPE BILL AND MEET SOME TAXES NOBODY LIKES TALK WITH NATIONAL LEADERS ABOUT VOTER REVOLTS AND PROSPECTIVE LOSS OF THEIR JOBS IT'S A GOOD CURE FOR HUBRIS 9401310084 940131 EDUCATION OF GIRLS TRAILS THAT OF BOYS IN MANY COUNTRIES BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THERE IS A WIDE GENDER GAP IN EDUCATION IN MANY COUNTRIES AROUND THE WORLD A NEW STUDY SHOWS THE STUDY BY POPULATION ACTION INTERNATIONAL A FAMILYPLANNING GROUP RANKED 112 COUNTRIES AND FOUND SIGNIFICANT DIFFERENCES IN MALEFEMALE ENROLLMENT IN 50 OF THEM IT FOUND THAT 76 MILLION FEWER GIRLS THAN BOYS ENROLLED IN PRIMARY AND SECONDARY SCHOOLS IN THOSE COUNTRIES IN 1990 THE GENDER GAP IS LARGEST IN SUBSAHARAN AFRICA NORTH AFRICA SOUTH ASIA AND THE MIDDLE EAST IN INDIA ALONE 33 MILLION FEWER GIRLS THAN BOYS ARE ENROLLED IN SCHOOL ACCORDING TO THE STUDY IN MANY DEVELOPING COUNTRIES GIRLS TAKE A BACK SEAT TO BOYS IN ACCESS TO SCHOOLING SAID SHANTI CONLY THE GROUP'S RESEARCH DIRECTOR PARENTS OFTEN GIVE PRIORITY TO THEIR SONS' EDUCATION THE STUDY SAID BECAUSE THEY THINK IT WILL BRING THE FAMILY GREATER ECONOMIC BENEFITS GIRLS DROP OUT MORE OFTEN TO HELP AT HOME TO GET MARRIED OR BECAUSE THEY GET PREGNANT IT SAID WOMEN'S LOW EDUCATION LEVELS CONTRIBUTE TO HIGH INFANTMORTALITY RATES THE GROUP SAID ESTIMATING THAT EACH ADDITIONAL YEAR OF SCHOOLING FOR GIRLS IS ASSOCIATED WITH A 5 TO 10 DECLINE IN CHILD DEATHS CLOSING THE GENDER GAP WOULD COST 65 BILLION IT SAID THE 50 COUNTRIES NOW SPEND A TOTAL OF 41 BILLION ON EDUCATION GIRLS GET THE LEAST AMOUNT OF SCHOOLING IN CHAD WHERE ADULT WOMEN HAVE AN AVERAGE OF LESS THAN ONE MONTH OF EDUCATION ACCORDING TO THE STUDY THERE ARE ONLY 22 FEMALES FOR EVERY 100 MALES ATTENDING HIGH SCHOOL THERE THE REPORT SAID AND IN AFRICA THE NUMBER OF MALES ENROLLED IN SCHOOL IS ALSO QUITE LOW IN MALI FOR INSTANCE ONLY 30 OF BOYS WERE ENROLLED IN GRADE SCHOOL AND 9 IN HIGH SCHOOL FRANCE SCORED HIGHEST AMONG THE 112 COUNTRIES ON THE GROUP'S EDUCATION INDEX WHICH RATED COUNTRIES ON FIVE MEASURES NEARLY ALL FEMALES IN FRANCE ATTEND HIGH SCHOOL AND WOMEN HAVE AN AVERAGE OF MORE THAN 11 YEARS OF EDUCATION AMERICAN WOMEN HAD THE HIGHEST NUMBER OF YEARS OF SCHOOLING AN AVERAGE OF 124 YEARS BUT THE US RANKED SIXTH ON THE STUDY'S OVERALL FEMALE EDUCATION INDEX IN PART BECAUSE IT HAD A SLIGHTLY LOWER RATIO OF FEMALES TO MALES IN HIGH SCHOOL FRANCE CANADA FINLAND NORWAY AND BELGIUM ALL WERE RATED SLIGHTLY HIGHER THAN THE US 9401310083 940131 BOOM IN HEALTHCARE CONSULTING SPURS MERGERS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL TURMOIL IN THE MEDICAL INDUSTRY IS PRODUCING SOME BIG NEW WINNERS HEALTHCARE CONSULTANTS HOSPITALS AND HEALTHMAINTENANCE ORGANIZATIONS ARE RUSHING TO HIRE STRATEGY ADVISERS SOMETIMES AT FEES TOPPING 1 MILLION THE CONSULTANTS ARE FINDING AMPLE WORK PUTTING MERGERS TOGETHER AND SOME MAY EVEN BE FUELING THE CONSOLIDATION TREND BY THE ADVICE THEY WHISPER INTO CHIEF EXECUTIVES' EARS A LOT OF PEOPLE SEE CHANGE HAPPENING RAPIDLY AND THEY'RE FRIGHTENED SAYS ERAN BROSHY HEAD OF THE HEALTHCARE PRACTICE AT BOSTON CONSULTING GROUP THEY WONDER HOW DO I PROTECT WHAT I'VE GOT' THE BEST ANSWER MR BROSHY SAYS IS TO BECOME A MORE INTEGRATED DELIVERY SYSTEM EITHER THROUGH ACQUISITIONS MERGERS OR JOINT VENTURES THERE ISN'T ANY COMPREHENSIVE DATA ON HOW MANY HEALTHCARE CONSULTANTS ARE ROAMING THROUGH US HOSPITALS AND OTHER MEDICAL SITES BUT ALL SIX OF THE LEADING US ACCOUNTING FIRMS HAVE SET UP HEALTHCARE CONSULTING UNITS OF 100 PEOPLE OR MORE GENERAL CORPORATE STRATEGY CONSULTANTS SAY HEALTH CARE IS ONE OF THEIR FASTEST GROWING FIELDS AND HOSPITAL EXECUTIVES FIGURE AT LEAST TWO DOZEN HEALTHCARE CONSULTING BOUTIQUES HAVE ESTABLISHED A NATIONAL PRESENCE WITHIN THE PAST FIVE YEARS ADVISING ON HEALTHCARE MERGERS IS A HUGE OPPORTUNITY SAYS DAVID KNOTT A CONSULTANT AT BOOZALLEN HAMILTON INC IN NEW YORK IT'S GROWING LIKE GANGBUSTERS BOOZALLEN IS URGING CLIENTS TO COMBINE DOCTORS HOSPITALS AND INSURANCE UNDER ONE ROOF A CONCEPT THAT IT HAS LABELED THE MEDICAL SERVICE COMPANY SIMILAR MESSAGES ARE COMING FROM SWARMS OF OTHER CONSULTANTS AT ACCOUNTING FIRMS AND HEALTHCARE BOUTIQUES THE ONLY WAY FOR HOSPITALS TO BE SUCCESSFUL GOING FORWARD IS TO PARTICIPATE IN THE SHIFT TOWARD AMBULATORY CARE SAYS JOHN GANNON A SHORT HILLS NJ CONSULTANT AT KPMG PEAT MARWICK THAT MEANS SPREADING GEOGRAPHICAL REACH TO BROADER MARKETS AND DEVELOPING REFERRAL LINKS THAT CAN HOOK BACK TO THE HUB INSTITUTION WHILE CONSULTANTS BEAT THE DRUMS FOR MORE DEALS THOUGH SOME INDUSTRY WATCHERS WORRY THAT NONSTOP RECOMMENDATIONS FOR MERGERS COULD PROVE EXCESSIVE MUCH LIKE WALL STREET'S OVERLEVERAGING OF INDUSTRIAL COMPANIES IN THE 1980S PEOPLE ARE CAUGHT UP BY THE NEED TO PICK A PARTNER SAYS CASEY NOLAN A WASHINGTONBASED HEALTHCARE CONSULTANT AT ERNST & YOUNG THERE'S ALMOST A PALPABLE PANIC IT'S KIND OF REMINISCENT OF LEVERAGED BUYOUTS PEOPLE SEE SOMETHING ON THE COVER OF MODERN HEALTHCARE MAGAZINE AND THEY'VE GOT TO TRY IT FOR NOW SUCH CAUTIONARY VOICES ARE RARE IN THE PAST WEEK SAYS BOSTON CONSULTING'S MR BROSHY THREE MAJOR TEACHING HOSPITALS HAVE CALLED US OUT OF THE BLUE TO TALK ABOUT RETHINKING THEIR FUNCTION HE SAYS HIS FIRM'S HEALTHCARE PRACTICE IS GROWING ABOUT 30 A YEAR AND ALREADY ACCOUNTS FOR NEARLY ONEFIFTH OF THE CONSULTING FIRM'S OVERALL WORK IF HEALTHCARE PROVIDERS TAKE THE CONSULTANTS' ADVICE TO CONSOLIDATE THEY CAN HELP CUT COSTS AS MUCH AS 20 BOOZALLEN CONTENDS SOME GAINS WILL COME FROM ECONOMIES OF SCALE IN ADMINISTRATIVE AREAS SUCH AS RECORDKEEPING BILLING AND COMPUTER SERVICES IT SAYS OTHER SAVINGS WILL COME FROM A GREATER ABILITY TO CHANGE DOCTORS' PRACTICE PATTERNS AND REWARD FRUGAL CARE ANOTHER ARGUMENT OFTEN CITED BY CONSULTANTS IS A BELIEF THAT HOSPITALS AND OTHER HEALTHCARE PROVIDERS MUST BUILD UP CRITICAL MASS TO BETTER NEGOTIATE WITH LARGE INSURERS AND HEALTHMAINTENANCE ORGANIZATIONS BIG BUYERS OF HEALTH CARE WANT TO STEER PATIENTS TO THE MEDICAL CENTERS THAT PROVIDE THE MOST COSTEFFECTIVE CARE SAYS ROBERT RUBIN PRESIDENT OF LEWINVHI INC BUT SOME CONSULTANTS SAY THEY ARE STARTING TO WORRY THAT NOT ALL MERGERS WILL NECESSARILY WORK OUT IT'S VERY TEMPTING TO PUT A MEDICALSERVICES COMPANY MODEL ON THE TABLE BUT YOU REALLY HAVE TO GO CLIENT BY CLIENT SAYS ROBERT GO A DETROITBASED CONSULTANT FOR DELOITTE & TOUCHE IN SOME CASES IT ISN'T CLEAR WHAT YOU GET OUT OF A FULL MERGER VERSUS SETTING UP A SIGNIFICANT BUSINESS RELATIONSHIP MR GO SAYS HE HAS SEEN CASES WHERE MERGERS DON'T HELP HOSPITALS LOWER COSTS AND END UP CREATING BUREAUCRATIC GRIDLOCK AS A RESULT HIS FIRM SOMETIMES COUNSELS CLIENTS TO STOP SHORT OF A MERGER MR GO SAYS DELOITTE RECENTLY HELPED HENRY FORD HEALTH SYSTEM NEGOTIATE A CLOSER AFFILIATION WITH BLUE CROSS OF MICHIGAN AND HELPED BLUE SHIELD OF CALIFORNIA NEGOTIATE AN AFFILIATION WITH UNIHEALTH AMERICA INC AFTER MERGER TALKS BROKE DOWN CONSULTANTS DON'T DISCLOSE FEES PUBLICLY BUT SOME SAY PRIVATELY THAT THEY CAN EARN 500000 OR MORE FOR ADVISING A MIDSIZED HOSPITAL ON A STRATEGIC OVERHAUL THAT CULMINATES IN A MERGER WORKING WITH THE NATION'S BIGGEST HOSPITALS CAN SOMETIMES BRING IN FEES THAT TOP 1 MILLION WHILE THOSE AMOUNTS DON'T MATCH WHAT INVESTMENT BANKERS COLLECT FOR CORPORATE TAKEOVERS THEY ARE HEFTY ENOUGH TO KEEP CONSULTANTS SEEKING OPPORTUNITIES IN ONE NOTABLE CASE THE UNIVERSITY OF PENNSYLVANIA HEALTH SYSTEM USED THREE DIFFERENT CONSULTANTS IN THE PAST TWO YEARS TO HELP ON ACQUISITIONS THE PHILADELPHIABASED HEALTH SYSTEM HIRED APM INC TO DEVELOP A GENERAL STRATEGY KPMG TO PICK OUT GROUPS OF PRIMARYCARE DOCTORS TO BUY AND ANOTHER TOP ACCOUNTING FIRM TO VALUE PHYSICIANS' PRACTICES THE HEALTH SYSTEM'S CHIEF EXECUTIVE WILLIAM KELLEY WON'T SAY HOW MUCH THE CONSULTANTS' ADVICE COST BUT HE SAYS IT WAS WORTH IT THE CONSULTANTS HAD NATIONWIDE EXPERIENCE IN LINING UP SUCH ACQUISITIONS DR KELLEY OBSERVES IN FLORIDA THE HUNTER GROUP USED TO SPECIALIZE IN TURNING AROUND TROUBLED HOSPITALS SAYS THE CONSULTING FIRM'S PRESIDENT DAVID HUNTER BUT IN THE PAST YEAR HE AND HIS 20 EMPLOYEES HAVE BROADENED THEIR SERVICES ADVISING ON THREE HOSPITAL MERGERS WE'RE GETTING CALLED BY HOSPITALS ASKING WHAT SHOULD WE DO' HE SAYS AND WE'RE TESTING THE MARKET TO SEE WHAT SORTS OF ALLIANCES MAKE SENSE OVER TIME SOME OF THE NEW MERGERS MAY PROVE TO BE MISTAKES SAYS BERNARD FERRARI A PARTNER AT MCKINSEY & CO HE SAYS HE'S ESPECIALLY CONCERNED THAT HIGHCOST TEACHING HOSPITALS WILL FIND THAT JOINING FORCES ONLY MAKES THEIR BUDGETING PROBLEMS MORE SEVERE IN FACT HE SAYS SOME PARTIES TO EARLY MERGERS MAY ALREADY BE LOOKING FOR WAYS TO SEPARATE BUT CONSULTANTS NEEDN'T WORRY FIXING UP TROUBLED MERGERS MAY MEAN EVEN MORE WORK AS DR FERRARI SAYS MCKINSEY HAS DONE AN ENORMOUS AMOUNT OF WORK ON POSTMERGER INTEGRATION IN ALL INDUSTRIES 9401310082 940131 STOCKMAN PREDICTS US BUDGET DEFICIT WILL SHRINK FASTER FORMER REAGAN AIDE CREDITS CLINTON HEALTHCARE PLAN GIGANTIC' STROKE OF LUCK BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON HAS CONVERTED AT LEAST ONE REPUBLICAN DAVID STOCKMAN RONALD REAGAN'S BUDGET DIRECTOR IN WHAT MR STOCKMAN HIMSELF DESCRIBED AS A REVERSAL FROM THE GLOOM AND DOOM I'VE LAST ESPOUSED HE IS NOW PREDICTING THAT THE FEDERAL DEFICIT WILL SHRINK EVEN FASTER THAN THE WHITE HOUSE PROJECTS AND IS PRAISING PRESIDENT CLINTON'S HEALTHCARE PLAN SPEAKING AT A FORUM SPONSORED BY THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET MR STOCKMAN PROJECTED THAT THE DEFICIT WHICH NOW AMOUNTS TO ABOUT 34 OF GROSS DOMESTIC PRODUCT WILL FALL TO ABOUT 15 BY THE END OF THE DECADE PRIMARILY BECAUSE THE INCREASE IN HEALTHCARE COSTS WILL SLOW WITHOUT DWELLING ON THE SPECIFICS MR STOCKMAN PRAISED THE THRUST OF THE CLINTON HEALTH PLAN BECAUSE IT WILL PUT IN PLACE MECHANISMS TO FORCE AMERICANS INTO PURCHASING POOLS THAT WILL FORCE HEALTHCARE PROVIDERS TO RESTRAIN HEALTHCARE COST INCREASES THE FUNDAMENTAL PLAN IS RIGHT MR STOCKMAN SAID WHEN THE BASIC DIRECTION OF REALITY CHANGES YOU GOT TO GET WITH IT WHEN LAST HEARD FROM MR STOCKMAN WAS ATTACKING REPUBLICANS WHO SAID THE DEFICIT COULD BE LICKED WITHOUT TAX INCREASES BUT NOW THAT MR CLINTON AND THE DEMOCRATS IN CONGRESS HAVE RAISED TAXES MR STOCKMAN SAYS THERE ISN'T ANY NEED FOR ANOTHER ROUND OF DEFICIT REDUCTION OTHERS DISAGREE AMONG THEM ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE AND TREASURY SECRETARY LLOYD BENTSEN MR STOCKMAN NOW AN INVESTMENT BANKER SAID MR CLINTON OWES HIS PRESENT SITUATION TO A GIGANTIC STROKE OF LUCK AND MODEST LEGISLATIVE HEROISM THE US ECONOMY IS BENEFITING FROM A SIGNIFICANT IMPROVEMENT IN PRODUCTIVITY THE RESULT OF WIDESPREAD CORPORATE RESTRUCTURING HE SAID AND FEDERAL SPENDING ON EVERYTHING BESIDES HEALTH CARE IS FLAT OR DECLINING WHEN MEASURED AGAINST GDP THE VALUE OF THE GOODS AND SERVICES PRODUCED IN THE ECONOMY MR STOCKMAN HAS TRACED THE DEFICIT PROBLEM TO JULY 1981 WHEN A FRENZY OF EXCESSIVE AND IMPRUDENT TAXCUTTING SHATTERED THE NATION'S FISCAL STABILITY IN HIS REMARKS FRIDAY HE SAID WE DIDN'T KNOW IT AT THE TIME BUT THE 1980S AMOUNTED TO AN EPOCHAL RACE BETWEEN THE US AND THE USSR OVER WHO COULD REACH FISCAL BANKRUPTCY FIRST THEY GOT THERE FIRST BY A HAIR 9401310081 940131 LETTERS TO THE EDITOR DON'T SELL OUT AIR TRAFFIC CONTROL THERE IS NO DOUBT THE FAA NEEDS FIXING BUT AN AIR TRAFFIC CONTROL CORPORATION IS NOT THE ANSWER GORE'S GANG GETS IT RIGHT REVIEW & OUTLOOK JAN 17 MANAGEMENT OF TRAFFIC IN THE PUBLIC INTEREST IS A GOVERNMENT FUNCTION FROM THE TOWN STOPLIGHT TO NEW YORK HARBOR TO THE NATION'S AIRWAYS AN AIR TRAFFIC CONTROL CORPORATION WOULD BE RUN UNDER MAJORITY CONTROL OF 15 TO 20 AIRLINE COMPANIES BUT WOULD BE FUNDED MOSTLY BY TICKET TAXES AND USER FEES PAID BY AIR PASSENGERS SHIPPERS AND AIRCRAFT OPERATORS THE AIRLINES THEMSELVES NOW CONTRIBUTE LITTLE OR NOTHING IN USER FEES WHERE WOULD THE INTERESTS OF THOSE PAYING CUSTOMERS BE SERVED TODAY THEY ARE OVERSEEN BY CONGRESS THE PEOPLE'S ELECTED REPRESENTATIVES AND SINCE THE AIR TRAFFIC SYSTEM IS THE EYES AND EARS OF THE FAA'S REGULATORY FUNCTIONS AND SAFETY ENFORCEMENT DO THE AIRLINE COMPANIES PROPOSE TO UNDERTAKE A SHARE OF THEIR OWN REGULATORY AND ENFORCEMENT OVERSIGHT THE RESULT WILL BE AN EXPENSIVE AND DISRUPTIVE PARALLEL BUREAUCRACY TO WHICH GOVERNMENT AND CONGRESS ABDICATE THEIR RESPONSIBILITIES TO ENFORCE REGULATION AND PROTECT THE PUBLIC INTEREST EXAMPLES OF PRIVATIZATION ABROAD ARE MEANINGLESS TO THIS NATION WHICH HAS 60 OF THE WORLD'S AIRCRAFT AND ALL BUT ONE OF THE GLOBE'S 20 BUSIEST AIRPORTS AND FOREIGN PRIVATIZED SYSTEMS BURDENED WITH LIABILITY INSURANCE DEBT SERVICE AND LABOR TROUBLES ARE FAR MORE COSTLY TO THEIR ECONOMIES AND THE TRAVELING PUBLIC CORPORATIZATION OF OUR SOLE AND IN EFFECT MONOPOLY AIR TRAFFIC CONTROL SYSTEM IS NOT THE MODEL TO INDUCE PRIVATE ENTERPRISE EFFICIENCY IN GOVERNMENT A PRIVATIZED MONOPOLY SYSTEM WOULD LACK COMPETITIVE OR ECONOMIC INCENTIVES TO CREATE SUCH EFFICIENCIES THE CORPORATION STRUCTURE PER SE IS NOT A PANACEA PRIVATE CORPORATIONS WERE HIRED BY THE FAA IN THE 1980S TO BYPASS GOVERNMENT'S PROCUREMENT AND PERSONNEL FAILINGS AND PRODUCE MAJOR ELEMENTS OF THE MASSIVE ATC UPGRADE THESE CORPORATIONS WERE UNABLE TO HANDLE THE MASSIVE SOFTWARE DEVELOPMENT SYSTEMS INTEGRATION AND PROJECT MANAGEMENT PROBLEMS WAS THE FAA A BAD CUSTOMER HINDERING WORK WITH ITS CHANGING SPECIFICATIONS CUMBERSOME PROCUREMENT AND UNINSPIRED PERSONNEL MANAGEMENT OF COURSE BUT IF WE WANT TO FIX GOVERNMENT THEN LET'S FIX GOVERNMENT A BUSINESS EXISTS TO MAXIMIZE ECONOMIC RETURN A GOVERNMENT EXISTS TO MAXIMIZE PUBLIC BENEFIT NO AMOUNT OF IMAGINED GAIN IN EFFICIENCY WILL OFFSET THE LOSS OF PUBLIC CONTROL OF EITHER THE TOWN STOPLIGHT OR THE NATION'S AIR TRAFFIC SYSTEM SO LET'S FIX THE FAA NOT SELL IT OUT WITH THE AIR TRAFFIC SYSTEM TO THE HIGHEST BIDDER 9401310080 940131 LETTERS TO THE EDITOR IDEALS THEN AND NOW NOW I WAS INTERESTED TO SEE IN YOUR ANNUAL LETTER FROM THE PUBLISHER JAN 5 YOUR ASSERTION IN LARGE ITALIC TYPE THAT PUBLISHING A NEWSPAPER IS A PUBLIC TRUST FOR WHICH WE ARE ACCOUNTABLE FIRST OF ALL TO YOU OUR READERS SOMEHOW THIS NOBLE IDEAL DOES NOT SEEM TO SQUARE WITH THE STATEMENT BY WILLIAM PETER HAMILTON AN EARLY EDITOR OF THE JOURNAL THAT A NEWSPAPER IS A PRIVATE ENTERPRISE OWING NOTHING WHATEVER TO THE PUBLIC IT IS THEREFORE AFFECTED WITH NO PUBLIC INTEREST IT IS EMPHATICALLY THE PROPERTY OF THE OWNER WHO IS SELLING A MANUFACTURED PRODUCT AT HIS OWN RISK OK TIMES CHANGE BUT ISN'T HAMILTON'S VIEW OF THE PRESS MORE IN KEEPING WITH THE FREEMENANDFREEMARKETS APPROACH TO THE WORLD THAT YOU APPLY TO EVERYTHING ELSE WHY HAVE YOU ABANDONED IT WHEN IT COMES TO THE PRESS 9401310079 940131 LETTERS TO THE EDITOR TRAP FOR URBAN YOUTH THEY CAN'T BACK DOWN AS SOMEONE WHO HAS WORKED WITH CHILDREN AND TEENAGERS I MUST TAKE EXCEPTION TO DOROTHY RABINOWITZ'S REVIEW OF THE OPENING EPISODE OF HOMICIDE TEENS AND TORIES WHO KILL LEISURE & ARTS JAN 10 ANYONE WHO HAS WORKED WITH TEENAGERS OR MORE SPECIFICALLY URBAN YOUTH WILL ATTEST TO THE IMPORTANCE THEY PLACE ON SAVING FACE THE LAST THING GANG MEMBERS OR REBELLIOUS YOUTH WILL TAKE IS ANY FORM OF DISSING IT IS A PERVASIVE ATTITUDE TO BACK DOWN AFTER SOMEONE HAS DISSED YOU ESPECIALLY IN FRONT OF YOUR FRIENDS IS NEXT TO IMPOSSIBLE THESE YOUNG PEOPLE FIND IT DIFFICULT TO JUST WALK AWAY EVEN IF THEY NEVER HAD ANY INTENTION TO HARM SOMEONE IN SHORT WHILE I WILL AGREE THAT THE CRIMINAL IN HOMICIDE IS NOT NECESSARILY REPRESENTATIVE OF MOST YOUNG CRIMINALS IN URBAN AREAS HE IS INCREASINGLY REPRESENTATIVE OF THE MANY YOUNG PEOPLE WHO COMMIT CRIMES THEY NEVER THOUGHT THEY WOULD OR COULD 9401310078 940131 IN PARAMOUNT BATTLE THE FOCUS HAS BECOME NOT WHO BUT WHEN BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SOME TIME AGO IN THE THIRD OR FOURTH MONTH OF THE 10 BILLION TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC THE FOCUS SEEMED TO SHIFT FROM THE QUESTION WHO'S GOING TO WIN TO WHEN WILL IT END FOR INVESTMENT BANKER FELIX ROHATYN IT HAS BEEN LIKE RUNNING UP A SERIES OF SAND DUNES ONE TAKEOVER STOCK TRADER COMPARES IT TO A TRIP TO THE DENTIST AT A MEETING WITH STOCK TRADERS THIS MONTH QVC NETWORK INC CHAIRMAN BARRY DILLER CALLED IT THE DEAL FROM HELL A NEW YORKER MAGAZINE CARTOON CAPTURED THE SENTIMENT TWO WEEKS AGO BY PICTURING A BEARDED ENDOFTHEWORLD PROPHET CARRYING A SIGN THAT READ THE END OF THE SALE OF PARAMOUNT IS NEAR AND INDEED THE OUTCOME COULD CONCEIVABLY BE DETERMINED TOMORROW WHEN FINAL BIDS ARE DUE IT'S BEEN VERY DIFFICULT TECHNICALLY LEGALLY AND EMOTIONALLY FRETS MR ROHATYN PARAMOUNT'S ADVISER AT LAZARD FRERES & CO WITH THE TIMETABLES DEADLINES AND CRISES IT'S BEEN PROBABLY ONE OF THE MOST DIFFICULT THINGS I'VE EVER BEEN INVOLVED WITH FROM THE POINT OF VIEW OF PERSONAL WEAR AND TEAR ON EVERYBODY FOR THE PARTICIPANTS THE BATTLE HAS BECOME A NEVERNEVER LAND OF CANCELED PLANS AND ENDLESS MEETINGS AT HOTELS AND INVESTMENT BANKERS' AND LAWYERS' OFFICES PARAMOUNT LAWYER RICHARD BEATTIE FOR EXAMPLE HAD TO BOW OUT OF A TRIP TO CHINA LAST FALL WITH DAVID ROCKEFELLER SAYS MR DILLER THIS IS NOT NORMAL LIFE THE BIGGEST DRAIN ON MY ENERGY IS TO CONSTANTLY TRY TO REMEMBER THAT THIS IS NOT REAL LIFE AT FOUR MONTHS AND 19 DAYS PARAMOUNT IS JUST ABOUT TO PASS THE LENGTH OF THE 1989 FIGHT BETWEEN PARAMOUNT AND WARNER COMMUNICATIONS INC OVER TIME INC AND THAT FIGHT DIDN'T REALLY BEGIN UNTIL THREE MONTHS AFTER THE TIME WARNER DEAL WAS ANNOUNCED WHEN PARAMOUNT MADE A HOSTILE BID FOR TIME BY COMPARISON SOME OF THE TAKEOVER BATTLES THAT ARE REMEMBERED AS RIVETING CLASSICS FOR BENDIX CORP CONOCO INC RJR NABISCO INC AND GETTY OIL CO WERE OVER WITHIN SIX WEEKS ALTHOUGH THEY REMAIN FEW AND FAR BETWEEN IN THE EARLY 1990S HIGHPROFILE HOSTILE TAKEOVER BATTLES SEEM TO DRAG ON FAR LONGER THAN THOSE A DECADE AGO ONE REASON IS THE THICKET OF DEFENSIVE STRUCTURES BUILT UP IN THE 1980S TO DETER CORPORATE RAIDERS AND GIVE BOARDS AND SHAREHOLDERS MORE TIME TO RESPOND TO LEGITIMATE BIDS CHIEF AMONG THEM IS THE POISON PILL WHICH BOARDS CAN USE TO MAKE A HOSTILE BID PROHIBITIVELY EXPENSIVE SEVERAL LOWERPROFILE DEALS OF THE LATE 1980S LASTED FAR LONGER THAN THE PARAMOUNT CONTEST IT TOOK EIGHT MONTHS 14 DAYS FOR TYSON FOODS INC TO WREST CONTROL OF CONAGRA INC AWAY FROM HOLLY FARMS CORP IN THE 198889 CHICKEN WARS FOR THE FIRST TWO MONTHS PARAMOUNT A MOVIE TELEVISION AND PUBLISHING CONCERN MANEUVERED TO PROTECT ITS FRIENDLY MERGER WITH VIACOM INC AND KEEP QVC AT BAY DESPITE MR DILLER'S HIGHER BIDS WHILE BOTH BIDDERS GATHERED MULTIPLE PARTNERS TO GAIN EXTRA FINANCING IN THE THIRD MONTH TWO DELAWARE COURTS RULED THAT PARAMOUNT'S BOARD HAD ACTED AGAINST ITS SHAREHOLDERS' INTERESTS AND ORDERED A NEW ROUND OF BIDS SINCE CHRISTMAS CABLETV CONCERN VIACOM AND HOMESHOPPING COMPANY QVC HAVE BEEN EXCHANGING MINOR CHANGES TO THEIR OFFERS IN A SLOWMOTION AUCTION PARAMOUNT HAS SIGNED NEW MERGER AGREEMENTS WITH QVC AND THEN VIACOM AGAIN AND VIACOM EVEN HAD TIME TO PUT TOGETHER AN 84 BILLION TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORP THE VIDEOCASSETTE RENTAL CHAIN THE SIEGE HAS ROBBED VIACOM ADVISER ROBERT GREENHILL OF TIME HE COULD HAVE USED TO BUILD THE INVESTMENT BANKING SIDE OF SMITH BARNEY SHEARSON INC ANOTHER SMITH BARNEY BANKER MICHAEL LEVITT SPENT PARTS OF THE CHRISTMAS AND NEW YEAR'S DAYS NEGOTIATING WITH BLOCKBUSTER AND SAYS HE HASN'T HAD A FULL DAY OFF SINCE THE CONTEST BEGAN DESPITE CRITICISM OF THIS TIMECONSUMING AUCTION MR ROHATYN SAYS IT WAS NECESSARY TO ALLOW A FAIR AIRING OF THE COMPETING OFFERS BOTH WITH TWOTIER CASHANDPAPER BIDS WHERE THE SECURITIES END IS MORE AND MORE DIFFICULT TO EVALUATE TAKEOVER TRADERS HAVE BEEN PARTICULARLY DISPIRITED BECAUSE PARAMOUNT STOCK HAS GONE DOWNHILL SINCE MIDNOVEMBER JUST BEFORE THE COURT ACTIONS THE LENGTHY AUCTION PROCESS HAS ERODED THEIR PROFITS BY ADDING TO THEIR FINANCING COSTS OF CARRYING THEIR POSITIONS AS THEY WAIT FOR BIG BLOWOUT BIDS THEY HOPE MAY HERALD THE END OF THE BATTLE FRANK BIONDI CHIEF EXECUTIVE OF NEW YORKBASED VIACOM WHO IS SUPPOSED TO RUN THE MAMMOTH PROPOSED COMBINATION OF VIACOM PARAMOUNT AND BLOCKBUSTER SAYS HE COULDN'T ESCAPE THE BATTLE EVEN WHEN HE JETTED OFF TO MIAMI RECENTLY FOR A TRADE SHOW THE ONLY THING ANYONE WANTED TO TALK ABOUT WAS THE DEAL HOME LIFE HAS BEEN DISRUPTED TOO MR BIONDI SAYS FOR ONE THING I'M NOT THERE HIS CHILDREN AGES 15 AND 18 MISS GOING TO MOVIES AND SPORTING EVENTS WITH HIM AND WHAT HAPPENS WHEN HE DOES MANAGE TO SQUEEZE IN SOME QUALITY TIME WITH THEM AT HOME THEY TOO BUG HIM ABOUT WHAT'S GOING ON BEHIND THE SCENES AND WHO'S GOING TO WIN THEIR FRIENDS ALSO BUG THEM HE ADDS NOTING THAT HE IS ESPECIALLY CAREFUL TO REMAIN MUM AROUND THE HOUSE ABOUT ANY CONFIDENTIAL DEVELOPMENTS PARAMOUNT'S CHAIRMAN MARTIN DAVIS MR DILLER'S NEMESIS IN THE CONTEST WAS SO TAKEN WITH THE NEW YORKER CARTOON THAT HE ACQUIRED IT HAVING FIRST WARNED HIS OWN ADVISERS THAT HE DIDN'T WANT TO GET INTO A BIDDING WAR FOR IT WITH THEM WHEN LAST SEEN IN HIS 42NDFLOOR OFFICE MR DAVIS HAD A VICTOR'S SMILE ON HIS FACE AS FAR AS THE ARTWORK GOES BUT THE STRAIN OF THE PROLONGED BATTLE IS SHOWING IN OTHER WAYS ONCE THE DESIGNATED CHIEF EXECUTIVE IN THE FRIENDLY MERGER WITH VIACOM FIRST ANNOUNCED ON SEPT 12 MR DAVIS NOW HAS LITTLE ROLE IN PARAMOUNT'S FUTURE NO MATTER WHO WINS LOOKING PALE THE HEALTHCONSCIOUS EXECUTIVE NOTED RECENTLY THAT HE WAS WRESTLING WITH HIS THIRD COLD SINCE THE FIGHT BEGAN 9401310077 940131 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BOWATER INC 75 MILLION OF PREFERRED AND 100 MILLION OF PREFERRED REDEEMABLE INCREASED DIVIDEND EQUITY SECURITIES VIA MERRILL LYNCH & CO PEOPLE'S REPUBLIC OF CHINA 1 BILLION OF 10YEAR GLOBAL BONDS VIA MERRILL LYNCH ACF INDUSTRIES HOLDING CORP 200 MILLION OF FIVEYEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH ACF INDUSTRIES INC 250 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL LYNCH AMLI RESIDENTIAL PROPERTIES INC INITIAL 92 MILLION SHARES VIA MERRILL LYNCH BENETTON GROUP SPA 5 MILLION AMERICAN DEPOSITARY SHARES VIA MERRILL LYNCH CONSEP INC INITIAL 25 MILLION SHARES VIA PRUDENTIAL SECURITIES INC DIGITAL LINK CORP INITIAL 23 MILLION SHARES VIA BEAR STEARNS & CO EMPRESAS LA MODERNA SA INITIAL 106 MILLION AMERICAN DEPOSITARY SHARES VIA MORGAN STANLEY & CO ESMOR CORRECTIONAL SERVICES INITIAL 833333 SHARES VIA JANNEY MONTGOMERY SCOTT IGEN INC INITIAL 26 MILLION SHARES VIA GOLDMAN SACHS & CO ISTITUTO MOBILIARE ITALIANO INITIAL 117 MILLION AMERICAN DEPOSITARY SHARES EQUAL TO ABOUT 35 MILLION SHARES VIA MORGAN STANLEY MAINSTREAM DATA INITIAL 2 MILLION SHARES VIA PIPER JAFFRAY INC MAPINFO CORP INITIAL 14 MILLION SHARES VIA ROBERTSON STEPHENS & CO MORGAN STANLEY AFRICA INVESTMENT FUND INITIAL 4 MILLION SHARES VIA MORGAN STANLEY ONCOR INC 3 MILLION SHARES VIA SMITH BARNEY SHEARSON INC PACIFIC GULF PROPERTIES INITIAL 39 MILLION SHARES VIA ALEX BROWN & SONS INC PARCPLACE SYSTEMS INC INITIAL 2 MILLION SHARES VIA ROBERTSON STEPHENS POST PROPERTIES 4 MILLION SHARES VIA MERRILL LYNCH RENAISSANCE COMMUNICATIONS CORP INITIAL 47 MILLION SHARES VIA GOLDMAN SACHS REPAP WISCONSIN INC 400 MILLION OF TWO PART DEBT OFFERING VIA CS FIRST BOSTON REPLIGEN CORP 25 MILLION SHARES VIA LEHMAN BROTHERS INC REPUBLIC OF PORTUGAL 750 MILLION ECU OF 10YEAR GLOBAL BONDS VIA MORGAN STANLEY DRESDNER & CO AND PARIBAS CORP ROCHESTER TELEPHONE CORP 5 MILLION SHARES VIA SALOMON BROTHERS SCANDINAVIAN BROADCASTING SYSTEMS SA 28 MILLION SHARES VIA PRUDENTIAL SECURITIES STONE CONTAINER 21 MILLION SHARES VIA SALOMON BROTHERS STORAGE EQUITIES INC 3 MILLION SHARES VIA PAINEWEBBER INC WALDEN RESIDENTIAL PROPERTIES INC INITIAL 7 MILLION SHARES VIA SALOMON BROTHERS WESTERN DIGITAL CORP 61 MILLION SHARES VIA KIDDER PEABODY & CO WESTERN NATIONAL LIFE INSURANCE CO INITIAL 325 MILLION SHARES VIA MERRILL LYNCH LOS ANGELES DEPARTMENT OF WATER & POWER 277 MILLION OF VARIOUS 1994 ELECTRIC PLANT REVENUE AND REVENUE REFUNDING BONDS VIA COMPETITIVE BID GWINNETT COUNTY SCHOOL DISTRICT GA 1415 MILLION OF IMPROVEMENT BONDS VIA COMPETITIVE BID TRIBOROUGH BRIDGE & TUNNEL AUTHORITY NY 665 MILLION OF GENERALPURPOSE REVENUE BONDS VIA A BEAR STEARNS GROUP SAN DIEGO 430 MILLION OF PENSIONOBLIGATION BONDS VIA A MERRILL LYNCH GROUP NEW YORK STATE DORMITORY AUTHORITY 230 MILLION OF REVENUE BONDS VIA A GOLDMAN SACHS GROUP NEW HAMPSHIRE TURNPIKE AUTHORITY 105 MILLION OF BONDS VIA A BEAR STEARNS GROUP 9401310076 940131 FORM + FUNCTION BY JOHN PIERSON ANOTHER LIVING BREATHING FIGURE IN OUR DAILY LIVES MAY SOON BE GONE THE CHECKOUT PERSON AT THE GROCERY STORE SHOPPERS ALREADY ARE BECOMING FAMILIAR WITH THE PISTOLSHAPED DEVICES THAT MANY CHECKERS USE TO SCAN THE BAR CODES ON GROCERIES NOW AT LEAST THREE COMPANIES HAVE DEVELOPED SELFSCANNING DEVICES THAT SHOPPERS THEMSELVES CAN USE SELFSCANNING IS SUPPOSED TO MEAN FOR CUSTOMERS A FASTER CHECKOUT AND MORE CONFIDENCE IN THE ACCURACY OF THE BILL FOR GROCERS IT MAY MEAN MORE CUSTOMERS LABOR SAVINGS AND LESS EMPLOYEE THEFT FARTHEST ALONG THIS ROAD TO DOITYOURSELF IS UNIQUEST OF JACKSONVILLE FLA SOME 20 STORES IN THE NORTHEAST ARE TRYING THE COMPANY'S AUTOMATED CHECKOUT MACHINE A SHOPPER BRINGS GROCERIES TO AN ACM COUNTER WHERE HE SCANS AND BAGS THEM AND RECEIVES A PRINTED BILL HE THEN TAKES THE BILL TO A CASHIER'S STATION TO PAY TO GUARD AGAINST THEFT THE COMPANY SAYS ITS SCANNER CAN CATCH AN ATTEMPT TO PASS OFF PEAS FOR STEAK PATHMARK STORES HAS INSTALLED THE DEVICE AT THREE LOCATIONS AND SIX MORE WILL GET THEM SOON IT LETS CUSTOMERS TAKE CONTROL OF BOTH THE SCANNING AND THE BAGGING AND GIVES THEM THE PERCEPTION THAT THEY'RE MOVING FASTER SAYS JOHN POLIDORE A PATHMARK DIRECTOR OF OPERATIONS OPTIMAL ROBOTICS TORONTO HAS PUT FOUR SELFSCANNING STATIONS AT A PRICE CHOPPER SUPERMARKET IN CLIFTON PARK NY A SHOPPER SCANS BAGS AND PAYS FOR HIS PURCHASES ALL AT ONE PLACE THE COMPANY WITH THE BOLDEST APPROACH IS SYMBOL TECHNOLOGIES BOHEMIA NY IT LETS EACH SHOPPER ROAM ABOUT WITH A PORTABLE HANDHELD SCANNER RECORDING EACH ITEM AS IT COMES OFF THE SHELF THE SHOPPER CAN CHECK HOW MUCH HE HAS SPENT AS HE GOES ALONG FOR A BILL PRINTOUT HE RETURNS THE DEVICE TO A SCANNER STATION SO FAR THE SYSTEM IS AT WORK ONLY IN AN ALBERT HEIJN SUPERMARKET IN GELDERMALSEN A VILLAGE IN THE NETHERLANDS HEIJN AND SYMBOL DEVELOPED THE SYSTEM WITH TNO PRODUCT CENTRE A DUTCH DESIGN FIRM PEOPLE NEVER SEEM TO TIRE OF FINDING NEW USES FOR OLDTREAD RUBBER YAACOV NAGLER TAKES THREE TIRE SIDEWALLS BOLTS THEM TOGETHER AND SELLS THE LAYERED RUBBER RING TO ROAD BUILDERS WHO DROP IT OVER A HIGHWAY SAFETY CONE MADE BY YANCO BETHESDA MD MR NAGLER'S SAFETYRINGS ARE MEANT TO GIVE CONES ENOUGH WEIGHT AND DIAMETER TO RESIST BEING BLOWN INTO THE PATH OF ONCOMING TRAFFIC SAFETYRING JOINS A LONG LIST OF PRODUCTS MADE FROM OLD TIRES RUNNING TRACKS SHINGLES TUGBOAT BUMPERS HOSES COW BEDS SHOE SOLES FLOWER PLANTERS MUD FLAPS WHEEL CHOCKS LIVESTOCK FEEDERS BALLPOINT PENS GARBAGE PAILS CAR MATS SPEED BUMPS SWINGS AND ARTIFICIAL FISH REEFS TO NAME SOME BUT ALL THESE PRODUCTS USE ONLY A FEW OF THE 240 MILLION TIRES SCRAPPED IN THE US EACH YEAR TWOTHIRDS OF SCRAP TIRES END UP IN LANDFILLS OR STOCKPILES OR ILLEGAL DUMPS MOST OF THE REST ARE BURNED FOR FUEL SOME ARE GROUND UP AND ADDED TO ASPHALT REVIEWS OF SAFETYRING ARE MIXED LEE MCCOUBREY TRAFFIC MANAGER AT CIANBRO CONSTRUCTION PITTSFIELD MAINE SAYS HE HAS BEEN TESTING 15 OF THE RINGS ON A FREEWAY IN WASHINGTON DC WITH A DIAMETER OF 18 TO 24 INCHES HE SAYS SAFETYRING IS PROBABLY OK FOR WIDE LANES BUT BULKY FOR NARROW LANES JOHN SANDY TRAFFIC MANAGER AT NATIONAL CAPITAL INDUSTRIES A BLADENSBURG MD CONSTRUCTION SUPPLY HOUSE CALLS SAFETYRING A LITTLE MORE STABLE THAN COMPETING PRODUCTS BUT THE RINGS DON'T STACK WELL SAYS MR SANDY AND SOME CUSTOMERS ARE PICKY ABOUT SAFETYRING'S USEDTIRE LOOK IT'S GETTING EASIER TO PUMP GAS WHILE KEEPING THE AIR CLEAN SERVICESTATION OWNERS HAVE BEGUN INSTALLING A NEW SMOGFIGHTING PUMP WITH A NOZZLE THAT'S FASTER AND FRIENDLIER THAN THE PREVIOUS GENERATION BY THE END OF 1995 ROUGHLY 40 OF SELFSERVICE STATIONS WILL BE REQUIRED TO HAVE PUMPS THAT CAPTURE GASOLINE VAPORS ESCAPING FROM A VEHICLE'S FILL PIPE AND RETURN THEM TO THE STATION'S UNDERGROUND STORAGE TANK THE BALANCE SYSTEM WHICH HAS BEEN AROUND SINCE THE 1970S USES THE PRESSURE DIFFERENCE BETWEEN THE TWO TANKS TO PASSIVELY MOVE THE VAPORS IT HAS A NOZZLE THAT RESEMBLES AN ELEPHANT'S TRUNK OR A BELLOWS WHICH MUST BE COMPRESSED TO MAKE A SEAL THE NEW VACUUM ASSIST SYSTEM HAS AN EXTRA LITTLE PUMP THAT PULLS VAPORS OUT OF THE CAR ITS NOZZLE DESIGNED BY OPW FUELING COMPONENTS CINCINNATI CLOSELY RESEMBLES A CONVENTIONAL NOZZLE THE VACUUM ASSIST DELIVERS GAS FASTER THAN THE BALANCE SYSTEM AND ITS NOZZLE IS EASIER TO USE EXXON IS CHANGING MANY OF ITS PUMPS TO VACUUM ASSIST BECAUSE IT IS MORE CUSTOMERFRIENDLY THAN THE BALANCE SYSTEM SAYS A SPOKESMAN BUT VACUUM ASSIST IS MORE COMPLEX HARDER TO MAINTAIN AND COSTS MORE TO INSTALL SUPERIOR EQUIPMENT ST LOUIS REPORTS THAT ONE CUSTOMER WITH 17 STATIONS DECIDED TO STICK WITH THE BALANCE BECAUSE OF THE EXPENSE OF THE VACUUM ASSIST 9401310074 940131 LEISURE & ARTS TELEVISION ONE TRISTE 'TOON BY ROBERT GOLDBERG THE LOT OF THE CRITIC HAS ALWAYS BEEN TOUGH IT TAKES YEARS OF DISCIPLINE AND TRAINING TO BUILD THE RIGHT KIND OF CALLUSES YOU HAVE TO KNOW HOW TO SIT REAL STILL FOR A LONG TIME AND HOW TO DUCK THE OCCASIONAL ROUNDHOUSE AND AFTER ALL THE BRUISES EVERY ONCE IN A WHILE A WORK COMES ALONG THAT ADDS INSULT TO INJURY A WORK LIKE THE CRITIC ABC WEDNESDAYS 8309 PM EST AN ANIMATED SERIES FROM JAMES L BROOKS AND THE PRODUCERS OF THE SIMPSONS AL JEAN AND MIKE REISS THE CRITIC IS THE STORY OF JAY SHERMAN VOICED BY SATURDAY NIGHT LIVE'S MASTER THESPIAN JON LOVITZ BALDER THAN SISKEL PAUNCHIER THAN EBERT JAY IS 36 DIVORCED AND LONELY HIS HAIR COMES OUT OF A SPRAY CAN AND AS EVEN HIS SISTER NOTES HIS BUTT STICKS OUT LIKE AN AIR CONDITIONER WHO IS THIS SCHLEMIEL WHY THE STAR OF HIS OWN SYNDICATED MOVIEREVIEW SHOW COMING ATTRACTIONS WHEN HE'S NOT BLASTING FILMS LIKE HOME ALONE 5 ON HIS RATING SCALE THE SHERMOMETER OR LUNCHING WITH VARIOUS STARS AT L'ANE RICHE JAY IS LOOKING FOR LOVE HE THINKS HE FINDS IT WHEN A BEAUTIFUL YOUNG STARLET COMES ON HIS PROGRAM AND ANNOUNCES THAT ALTHOUGH SHE WAS A MODEL A BEAUTY QUEEN AND USED TO DATE DONALD TRUMP SHE FINDS DUMPY LITTLE SMART MEN SEXIEST ESPECIALLY JAY OF COURSE IT MAY NOT HURT THAT HE'S ABOUT TO REVIEW HER NEW FILM WHEN HIS 11YEAROLD SON MARTY BURSTS IN ON THE TWO OF THEM JAY SITS THE BOY DOWN FOR A MANTOMAN CHAT NOW SON YOU MAY JUST HAVE NOTICED A BEAUTIFUL WOMAN IN MY BED HE SAYS I WON'T TELL ANYONE MARTY PROMISES ACTUALLY SAYS JAY I WISH YOU'D TELL EVERYONE PARTICULARLY YOUR MOTHER AND HER PERSONAL TRAINER ALBERTO THIS WEEK'S SHOW OFFERS MORE MALE BONDING AS JAY VISITS HIS SON'S PRIVATE SCHOOL FOR CAREER DAY ALTHOUGH THE FOREIGN STUDENTS DON'T KNOW WHAT TO MAKE OF HIM HE BEARS A STRANGE RESEMBLANCE TO OUR GOD OF FLATULENCE JAY SOON CONVINCES THEM THAT BEING A CRITIC IS A GREAT JOB I GET TO EAT POPCORN ALL DAY AND WATCH MOVIES PLUS I GET TO THINK OF NEW WAYS TO CRITICIZE THINGS LIKE YOU MIGHT SAY THAT YOUR TEACHER IS WEARING AN UGLY RED DRESS I SAY SHE'S A WALKING BLOOD CLOT THE CRITIC IS A CLEVER SHOW AT ITS CLEVEREST IN THE DETAILS THE MARGINALIA LIKE THE SNIPPETS OF FILMS THAT JAY REVIEWS EACH WEEK THERE'S SPIKE LEE'S LATEST F THE STORY OF MALCOLM FORBES AND ARNOLD SCHWARZENEGGER IN RABBI PI A CHICAGO POLICEMAN WHO GOES UNDERCOVER AS A HASIDIC JEW EAT LEAD RABBI SAYS A CROOK SORRY THAT'S NOT KOSHER SAYS ARNOLD PULLING OUT HIS SHOTGUN TO BLOW THE BAD GUY AWAY HAVA NAGILA BABY THIS SERIES IS PACKED WITH ALL SORTS OF SLY TIDBITS THAT SPOOF THE MEDIA THERE'S THE MICHAEL JACKSON NEWS NETWORK WITH BUREAUS IN BANGKOK LONDON AND DISNEYLAND AND A VIDEO GAME CALLED ESCAPE FROM NEW YORK WHERE THE PRIME NEMESIS IS AN ELECTRONIC AL SHARPTON WHO TALKS PLAYERS TO DEATH BLAH BLAH BLAH TONALLY THE CRITIC IS SHARP CUTTING LIKE ITS HERO IT'S ALWAYS READY TO FLING A JUICY INSULT IN ANY DIRECTION FROM WOODY ALLEN TO JFK FROM RICHARD NIXON TO SALLY STRUTHERS ATTENTION STUDENTS FROM UNDERDEVELOPED COUNTRIES SALLY STRUTHERS IS HERE TO SEE YOU AND SHE'S BROUGHT 500 SANDWICHES WHATEVER SHE CAN'T EAT IS YOURS IF THE CRITIC SNEERS EQUALLY AT JUST ABOUT EVERYONE IT SNEERS MOST AT OUR HERO JAY HIS BOSS HUMILIATES HIM HIS EXWIFE HATES HIM HIS ADOPTIVE PARENTS BARELY REMEMBER HE'S ALIVE AND HIS PUBLIC HIS PUBLIC CAN'T STAND HIS SNOOTY PRETENSIONS I HAVE NO FANS HE ADMITS MOST OF MY VIEWERS ARE DRUNKEN FRAT BOYS STRIP ALL THE MOVIE TRAPPINGS AWAY AND WHAT YOU'VE GOT IS A HALFHOUR PROGRAM ABOUT A LOSER A HOMER SIMPSON SHOW WITHOUT A BART IN FACT THERE'S NOT A SINGLE LIKABLE CHARACTER IN THE CRITIC WHICH FOR ALL THE ACERBIC WIT MAKES THIS SERIES A LITTLE OFFPUTTING A LITTLE TRISTE BEATING UP ON JAY WITH A STRING OF MEANSPIRITED FAT AND LONELY JOKES THE SHOW SEEMS LIKE A HALFHOUR OF PICKING ON THE DUMPY KID AT THE PLAYGROUND IF ONLY JAY WERE LOVABLE ENOUGH TO MAKE YOU WANT TO SPRING TO HIS DEFENSE OR TOUGH ENOUGH TO FIGHT BACK HIMSELF FOR ME THE CRITIC IS CAPTURED IN THE MOMENT WHEN THE STARLET STORMS OUT ON JAY YOU'RE SHORT YOU'RE FAT AND EVEN FOR A FILM CRITIC YOU'RE UGLY SHE SNARLS I SEE YOU WANT ME TO BEG SAYS JAY WELL THERE'S ONE THING YOU DIDN'T COUNT ON I HAVE NO PRIDE ULTIMATELY THE CRITIC IS A SHOW ABOUT PUTDOWNS OF FILMS OF MEDIA FIGURES AND OF ITS OWN CHARACTERS IN SHORT A REAL DON RICKLES OF A SHOW THERE'S NO QUESTION THAT IT HAS SOME OF THE WITTIEST WICKEDEST WRITING ON PRIMETIME TV AND PERHAPS THIS ANIMATED SERIES WILL TURN INTO SOME KIND OF CULT HIT BUT IT'S TOO ADULT FOR KIDS TOO INSIDEHOLLYWOOD FOR MOST ADULTS AND ITS TONE IS NOT JUST SNIDE IT'S DEPRESSING ABOVE ALL THE CRITIC MAKES ONE BIG MISTAKE IT PORTRAYS CRITICS AS LOSERS WHICH CLEARLY ISN'T FUNNY AT ALL THERE IS A RUMOR GOING AROUND THAT ABC HAS ANOTHER SHOW IN THE WORKS ABOUT A TELEVISION REVIEWER STARRING DANIEL DAYLEWIS OR PERHAPS SEAN CONNERY NOT MUCH HAPPENS BUT THE HERO SURE LOOKS GOOD AS HE STRUGGLES MANFULLY FOR THAT PERFECT ADJECTIVE NOW THERE'S A PROGRAM WORTH WATCHING 9401310073 940131 MARKETING & MEDIA ADVERTISING VOLKSWAGEN AGENCY HAVE A LOT RIDING ON 100 MILLION CAMPAIGN BY KEVIN GOLDMAN TONIGHT ON CNN'S LARRY KING LIVE THE FIRST OF A LONG ANTICIPATED SERIES OF ADS FOR VOLKSWAGEN'S GOLF AND JETTA MODELS IS SCHEDULED TO AIR BOTH THE AUTOMOBILE MANUFACTURER AND ITS FLEDGLING NEW YORK AD AGENCY BERLIN WRIGHT CAMERON HAVE THEIR FUTURES RIDING ON THE RESULTS FOR VOLKSWAGEN AG IT IS PERHAPS THE FINAL CHANCE TO RECAPTURE THE AMERICAN DRIVER WHOSE AFFECTIONS THE GERMAN CAR MAKER HAD WON THROUGHOUT THE 1960S WITH THE SEEMINGLY UBIQUITOUS BEETLE IN THE CUTTHROAT COMPETITION AMONG COMPACT CARS IN THE 1970S AND 1980S VOLKSWAGEN LOST THE BATTLE TO JAPANESE RIVALS ITS REPUTATION FOR SAFETY TOOK A DRUBBING FROM CRITICS IT RESISTED PUTTING AIR BAGS IN CARS WHILE OTHER MANUFACTURERS HURRIED TO INSTALL THEM AND IT RECORDED A DISMAL SALES PERFORMANCE LAST YEAR LARGELY BECAUSE OF PRODUCTION AND QUALITY PROBLEMS AT ITS PLANT IN PUEBLA MEXICO FOR BERLIN WRIGHT CAMERON THE SPINOFF AGENCY CREATED LAST YEAR FROM OMNICOM GROUP'S DDB NEEDHAM IT IS A CRITICAL OPPORTUNITY TO PROVE ITSELF AS A CREATIVE FORCE ON MADISON AVENUE AND AS A VALUABLE MARKETING PARTNER TO VOLKSWAGEN ITS BIGGEST AND MOST IMPORTANT CLIENT GIVING VOLKSWAGEN A JUMPSTART WON'T BE EASY VOLKSWAGEN DIDN'T KEEP UP WITH WHAT AMERICANS WANTED SAYS JOHN RETTIE AN ANALYST WITH JD POWER & ASSOCIATES AND THE EDITOR OF THE CALIFORNIA REPORT A MONTHLY NEWSLETTER ON MARKETING INDEED SALES OF THE GOLF FELL 499 LAST YEAR TO ONLY 4693 AND DROPPED 512 TO 14583 FOR THE JETTA ACCORDING TO DATA SUPPLIED BY JACOBS ASSOCIATES IN RUTHERFORD NJ SALES PICKED UP IN THE FOURTH QUARTER ONCE PROBLEMS IN THE MEXICAN PLANT WERE RESOLVED IN JUNE ONLY 97 GOLFS WERE SOLD BUT BY DECEMBER 811 VEHICLES MOVED OUT OF SHOWROOMS THAT DRAMATIC BOOST SAY AUTO ANALYSTS IS EVIDENCE THAT VOLKSWAGEN IS POISED FOR A COMEBACK VOLKSWAGEN HAS TO COMMUNICATE DIRECTLY TO CONSUMERS AND GET PEOPLE TO SHOP THEM SAYS SUSAN JACOBS AN ANALYST WITH JACOBS ASSOCIATES AN AUTOMOTIVE FORECASTING AND CONSULTING FIRM VOLKSWAGEN DOESN'T HAVE HIGH AWARENESS AMONG CONSUMERS SHE SAYS BUT MR RETTIE SAYS THERE IS LATENT AWARENESS OF VOLKSWAGEN AMONG CONSUMERS TAPPING INTO THOSE MEMORIES IS ONE REASON VOLKSWAGEN IS SPENDING UPWARD OF 100 MILLION IN AN UNPRECEDENTED AD BLITZ THE SERIES OF 11 COMMERCIALS WHICH INCLUDES 15SECOND AND HALFMINUTE SPOTS DISCUSSES THE VEHICLES' MECHANICAL AND SAFETY FEATURES IN WAYS THAT TRY TO BE HUMOROUS WHILE THE NEW ADS STRIVE TO BE CLEVER THEY DON'T MATCH SOME OF VOLKSWAGEN'S BEST ADS FROM THE 1960S PRODUCED BY DOYLE DANE BERNBACH SUCH AS ONE SHOWING A BEETLE BEING EASILY DRIVEN AFTER A BLIZZARD TO ILLUSTRATE HOW THE MAN WHO DRIVES THE SNOW PLOW GETS TO THE SNOW PLOW IN A NEW COMMERCIAL FOR THE GOLF A KNIGHT IN SHINING ARMOR WALKS HEADON TOWARD THE CAMERA ANY CAR WITH AIR BAGS WILL HELP PROTECT YOU IN A HEADON COLLISION SAYS THE VOICEOVER WHICH IS SUPPLIED BY KYLE MACLACHLAN THE STAR OF TWIN PEAKS ABC'S QUIRKY SERIES FROM A FEW YEARS AGO THE NEW GOLF HAS AIR BAGS CRUMBLE BEAMS AND SIDE IMPACT BEAMS SO IT CAN HELP PROTECT YOU FROM ANY ANGLE INCLUDING THIS ONE AS THE AD ENDS THE KNIGHT IS WALKING AWAY FROM THE CAMERA REVEALING ONLY HIS FRONT IS PROTECTED HIS OTHER VERTICAL HALF SHOWS HE IS WEARING NOTHING BUT UNDERWEAR ANOTHER COMMERCIAL IS SHOWN FROM THE POINT OF VIEW OF A BUG ON A RURAL HIGHWAY TO YOU THE NEW GOLF MAY NOT LOOK MORE AREODYNAMIC THAN A PORSCHE 928 THE VOICEOVER BEGINS AS ONE CAR QUICKLY PASSES BUT THEN YOU'RE NOT A BUG SPLAT THE BUG HITS THE WINDSHIELD THE CHALLENGE ON DOING NEW VOLKSWAGEN ADVERTISING SAYS ANDY BERLIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BERLIN WRIGHT IS TO COME UP WITH HARD CLEAR PRODUCTFOCUSED ADS THAT GIVE CAR BUYERS THE KIND OF INFORMATION THEY NEED TO MAKE AN INTELLIGENT CHOICE AND TO COMPETE WITH THE LEGACY OF SOME OF THE BEST ADVERTISING EVER DONE MR BERLIN IS THE VOICEOVER FOR EACH JETTA AD OMITTED FROM THE COMMERCIALS IS THE SLOGAN THAT ENDED EACH VOLKSWAGEN SPOTS RECENTLY THE MOST LOVED CARS IN THE WORLD THAT WAS MEANT TO BUILD BRAND AWARENESS THAT WE ARE ALIVE AND WELL SAYS ANDREW BERGSTROM A VOLKSWAGEN ADVERTISING EXECUTIVE THIS NEXT PHASE IS TO BUILD INTEREST AND AWARENESS IN THE SPECIFIC CARS WHICH SELL FOR 11000 TO 16000 AND COMPETE WITH EVERYTHING FROM THE HONDA ACCORD TO CHRYSLER'S NEW NEON MR BERGSTROM ACKNOWLEDGES THAT VOLKSWAGEN HASN'T BEEN A MAJOR PRESENCE ON BROADCAST NETWORK TELEVISION LATELY BUT THAT IS CHANGING THIS WEEK IT HEAVILY BOUGHT SUCH HIP SHOWS AS LATE SHOW WITH DAVID LETTERMAN ON CBS AND SEINFELD ON GENERAL ELECTRIC'S NBC IT WILL ALSO BE SEEN ON CABLE NETWORKS INCLUDING MTV AND VH1 VOLKSWAGEN HAS SET AN AUDACIOUS GOAL FOR ITSELF OF MORE THAN DOUBLING ITS 1993 US SALES ULRICH SEIFFERT THE COMPANY'S HEAD OF WORLDWIDE RESEARCH SAID RECENTLY THAT VOLKSWAGEN IS SEEKING TO SELL 250000 VEHICLES IN THE US AND IT NEEDED TO RECLAIM ITS IMAGE FOR SELLING HONEST RELIABLE AFFORDABLE CARS THAT IS QUITE A CHALLENGE NOT ONLY FOR VOLKSWAGEN BUT FOR ITS ADVERTISING MESSENGER BERLIN WRIGHT THE 40MEMBER AGENCY HOUSED IN TEMPORARY OFFICES ON 38TH STREET IN MANHATTAN FAR FROM DDB NEEDHAM'S HEADQUARTERS ON TONY MADISON AVENUE WAS BORN INITIALLY TO CONCENTRATE ON VOLKSWAGEN ITS LEADER MR BERLIN WAS PRESIDENT OF NEEDHAM'S NEW YORK OFFICE AND ONE OF THE FOUNDERS OF THE RESPECTED SAN FRANCISCO AGENCY GOODBY BERLIN SILVERSTEIN SOME AD EXECUTIVES HAVE SPECULATED THAT MR BERLIN WAS SHOVED ASIDE AT DDB NEEDHAM BUT HE AND OFFICIALS AT DDB NEEDHAM DENY SUCH RUMORS IF VOLKSWAGEN DOESN'T SEE IMPROVED SALES RESULTS AND BLAMES THE AGENCY BERLIN WRIGHT COULD BE DEALT A NEARFATAL BLOW THE AGENCY DOES HAVE OTHER CLIENTS NONE OF THEM NEARLY AS BIG AS VOLKSWAGEN HOWEVER THEY INCLUDE THE NEW YORKER VIACOM'S MTV NETWORKS THE WASHINGTON POST AND HJ HEINZ'S WEIGHT WATCHERS FROZEN FOODS VOLKSWAGEN IS A VERY PLEASANT CAR TO DRIVE SAYS MR RETTIE OF JD POWER IT HAS A PERFECT OPPORTUNITY TO SUCCEED IT HAS TO BREAK THROUGH THE CLUTTER AND GET ITS NAME BACK ON PEOPLE'S SHOPPING LIST STERLING WINTHROP INC A UNIT OF EASTMAN KODAK CO TAPPED OMNICOM GROUP'S BBDO TO HANDLE ITS ADVERTISING FOR BAYER ASPIRIN BAYER SELECT ASPIRINFREE ANALGESICS AND BAYER SELECT COLD & FLU PRODUCTS THE MOVE CAME FOLLOWING A REVIEW WHICH INCLUDED THE INCUMBENT AGENCY AYER BILLINGS WERE ESTIMATED AT APPROXIMATELY 50 MILLION STEVEN G STAVES PRESIDENT OF STERLING HEALTH USA SAID IN A STATEMENT THAT IT WAS NOT AN EASY DECISION TO LEAVE AYER WE GREATLY APPRECIATE THE STRONG CREATIVE AND HIGHLY EFFECTIVE EXECUTION WHICH AYER DEMONSTRATED IN HANDLING BAYER DURING THE PAST TWO YEARS THE SELECTION OF BBDO FOLLOWS A MOVE LAST YEAR TO CONSOLIDATE PANEUROPEAN AD VERTISING FOR THE COMPANY'S PANADOL ANAL GESICS WITH AMV BBDO OF LONDON PEPSI SPOT PEPSICO'S PEPSICOLA CO SAID IT HAS STARTED AIRING GLOBALLY THE MYSTERY CHIMP SPOT THAT ALSO WAS SET TO RUN SUNDAY DURING THE SUPER BOWL BROADCAST IT'S AN ANTHROPOLOGICAL TEST COMPARING THE EFFECTS OF DRINKING COKE ON ONE CHIMP WITH THOSE OF PEPSI ON ANOTHER AFTER SIX WEEKS THE COKE CHIMP SHOWS IMPROVEMENT IN MOTOR SKILLS THE PEPSI CHIMP HAS DISAPPEARED BUT HE PHONES IN FROM HIS BEACH BUGGY SURROUNDED BY BIKINICLAD BABES GREY GREY ADVERTISING NEW YORK NAMED JOHN SHANNON CHAIRMAN AND CHIEF EXECUTIVE OF ITS OFFICES IN EUROPE THE MIDDLE EAST AND AFRICA TO THE NEW POST OF PRESIDENT GREY INTERNATIONAL MR SHANNON AGE 56 RETAINS HIS CURRENT TITLES FOR THE PRESENT GREY SAID 9401310072 940131 REVIEW & OUTLOOK EDITORIAL RELEASE THE FOSTER REPORT AN EXCERPT FROM THE AUG 10 PRESS CONFERENCE AT THE JUSTICE DEPARTMENT DISCUSSING THE PARK SERVICE POLICE REPORT ON THE DEATH OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER CARL STERN IS THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS FOIA REFERS TO THE FREEDOM OF INFORMATION ACT MR STERN THANK YOU THANKS A LOT Q WAIT A MINUTE SIR Q FROM WHICH OFFICE ARE WE GETTING THE REPORT Q WHEN IS IT BEING RELEASED MR STERN AS SOON AS THE FOIA SECTION PROCESSES THE REPORT IT'LL BE AVAILABLE TO YOU THAT HAS ALREADY STARTED BEFORE THIS MEETING EVEN TOOK PLACE Q DO YOU HAVE TO FILE A REQUEST OR IS IT GOING TO BE RELEASED TO EVERYBODY AT ONCE MR STERN THE NORMAL PRACTICE OF THE FOIA SECTION IS TO CALL THE PEOPLE WHO HAVE REQUESTED IT AND LET THEM KNOW THAT IT'S AVAILABLE AND TO ASK THEM WHETHER THEY WOULD LIKE IT MAILED OR WOULD THEY LIKE TO PICK IT UP LAUGHTER MR STERN IF YOU'LL SEND AN FOIA TO PHILIP HEYMANN THE DEPUTY ATTORNEY GENERAL OR TO ME WE'LL MAKE SURE THAT IT GETS UP TO THAT SECTION Q THE QUESTION IS TO BOTH OF THESE GENTLEMEN HERE YOU SAY THIS MAN WAS IN GREAT DEPRESSION AND HE'D BEEN DISSATISFIED WITH THE GOVERNMENT THEREFORE WE CERTAINLY NEED TO KNOW WHAT DEPARTMENTS AND WHAT AGENCIES OF GOVERNMENT HE TALKED WITH RECENTLY AND THAT WOULD BE IN THE TELEPHONE LOG AND YOU'RE NOT GOING TO MAKE THAT PUBLIC MR STERN SARAH IF YOU PUT IN A FREEDOM OF INFORMATION ACT REQUEST WE'LL MAKE SURE THAT IT'S HANDLED MR STERN SARAH I DON'T THINK WE HAVE THAT AVAILABLE AT THIS AT THIS POINT Q WELL WHY DON'T YOU MR STERN YOU WANT SOME SPECIAL SERVICING IS THAT IT YOU'RE NOT CONTENT TO WAIT AND DO IT THE NORMAL WAY THROUGH A FREEDOM OF INFORMATION ACT REQUEST Q GOING TO WAIT ON THAT MR STERN THANK YOU VERY MUCH UPON READING THIS EXCHANGE WE DID WHAT WE THOUGHT WE WERE BEING ASKED TO DO SUBMIT A FOI REQUEST TO MR HEYMANN WE RECEIVED A LETTER DATED AUG 25 FROM CHARLENE WRIGHT DEPUTY CHIEF OF THE INITIAL REQUEST UNION OF THE OFFICE OF INFORMATION AND PRIVACY AT THE JUSTICE DEPARTMENT ACKNOWLEDGING RECEIPT OF OUR LETTER ON AUG 18 AND EXPLAINING THIS OFFICE HAS A BACKLOG OF INITIAL REQUESTS AS WELL AS LIMITED PERSONNEL RESOURCES AS YOU MAY BE AWARE DOCUMENTS RESPONSIVE TO YOUR REQUEST WILL REQUIRE CONSULTATIONS WITH OTHER DEPARTMENT OF JUSTICE COMPONENTS AND AGENCIES ACCORDINGLY I MUST INFORM YOU THAT WE WILL BE UNABLE TO COMPLY WITH THE STATUTORY TIME REQUIREMENT FOR PROCESSING OF THIS REQUEST ON BEHALF OF THE OFFICE OF THE DEPUTY ATTORNEY GENERAL IN OCTOBER WE VISITED MR STERN'S OFFICE TO TAKE UP THE INVITATION ALSO ISSUED AT THE AUG 10 PRESS CONFERENCE TO VIEW AN ACTUAL COPY OF THE NOTE DISCOVERED AT THE BOTTOM OF MR FOSTER'S BRIEFCASE THE TEXT HAD BEEN RELEASED BUT COPIES HAD BEEN WITHHELD TO RESPECT THE FAMILY'S WISHES TO THE UNTRAINED EYE THE HANDWRITING ON THE NOTE CORRESPONDED WELL ENOUGH WITH A SAMPLE OF MR FOSTER'S WRITING WE HAD INDEPENDENTLY OBTAINED AT THAT TIME MR STERN PREDICTED THE FOI REQUEST WOULD BE HONORED WITHIN THE MONTH IT IS NOW THE LAST DAY OF JANUARY AN INDEPENDENT COUNSEL HAS SPECIFIED THAT MR FOSTER'S APPARENT SUICIDE MUST BE PART OF HIS INQUIRY INTO THE ACTIVITIES SURROUNDING WHITEWATER DEVELOPMENT CORP YET THE REPORT THE FOIA SECTION STARTED WORK ON PRIOR TO THE AUG 10 PRESS CONFERENCE HAS NOT YET BEEN RELEASED WHAT'S MORE THE NEW YORK POST ENTERPRISED ITS OWN REPORT BASED FOR EXAMPLE ON INTERVIEWS WITH GEORGE GONZALEZ A FAIRFAX COUNTY PARAMEDIC WHO SAYS HE WAS THE FIRST RESCUE WORKER TO VIEW THE BODY KORY ASHFORD A TECHNICIAN WHO HELPED PUT THE BODY INTO A BODY BAG AND PARK POLICEMAN KEVIN FORNSHILL THE FIRST POLICE OFFICER AT THE SCENE ACCORDING TO THE POST THEY FOUND THE BODY IN A NEAT CONDITION STILL CLUTCHING THE REVOLVER WITH ARMS PEACEFULLY AT ITS SIDE AND WITH ONLY SLIGHT TRACES OF BLOOD HOMICIDE DETECTIVES INTERVIEWED BY THE POST UNIFORMLY SAID THAT WHEN SOMEONE PUTS A REVOLVER IN HIS MOUTH AND PULLS THE TRIGGER THE RESULT IS A MESS THE POST REPORTS OF LAST THURSDAY AND FRIDAY WHICH ALSO DETAIL APPARENT DISCREPANCIES OVER BALLISTIC TESTING OF THE REVOLVER ARE EITHER WRONG OR RIGHT IF THEY ARE WRONG IT'S A GREAT PITY THE COMPLETE PARK SERVICE POLICE REPORT HAS NOT BEEN RELEASED TO STILL SUCH SPECULATION IF THEY ARE RIGHT THE JUSTICE DEPARTMENT AND THE PARK SERVICE POLICE HAVE HAD A GREAT DEAL TO HIDE EITHER ALTERNATIVE SUGGESTS THAT THE REPORT SHOULD BE RELEASED FORTHWITH ACCORDINGLY WE FILED SUIT IN FEDERAL DISTRICT COURT IN MANHATTAN FRIDAY IN AN ATTEMPT TO GET THE GOVERNMENT TO COMPLY WITH THE REQUIREMENTS OF THE FREEDOM OF INFORMATION ACT WE HAVE ALSO SENT MR HEYMANN AN ADDITIONAL FOI REQUEST FOR AN ACTUAL COPY OF THE FOSTER NOTE GIVEN WHAT WE NOW KNOW ABOUT PREVIOUSLY SECRET VISITS TO HIS OFFICE THE NIGHT OF HIS DEATH AND THE REMOVAL OF PAPERS IT'S TIME THE HANDWRITING WERE STUDIED BY MORE THAN AN UNTRAINED EYE STRANGE THINGS ARE HAPPENING AT THE JUSTICE DEPARTMENT MR HEYMANN HAS JUST ANNOUNCED HIS RESIGNATION ON THE SAME DAY JANET RENO'S PERSONAL AIDE LULA RODRIGUEZ DEPARTED AMID AN INVESTIGATION OF ABUSE OF ABSENTEE BALLOTS IN A RELATIVE'S FLORIDA ELECTION CAMPAIGN ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL HAS HAD TO RECUSE HIMSELF FROM WHITEWATER THE DEPARTMENT'S MOST SERIOUS AND SENSITIVE BUSINESS THE PARK POLICE ARE NOW TELLING THE POST THAT IF IT WANTS FURTHER INFORMATION ON MR FOSTER IT SHOULD USE THE FOI PROCESS THE WHITE HOUSE IS REFUSING TO COMMENT ON THE POST STORIES ON THE GROUNDS THAT THE SPECIAL COUNSEL ROBERT FISKE HAS NOW INCLUDED THAT IN THE SCOPE OF HIS INVESTIGATION WHILE OF COURSE WE HAVE NOT POLLED ALL MAJOR NEWS ORGANIZATIONS THOSE OUR COUNSEL HAS QUERIED REPORT THAT THEY DID NOT GO THROUGH THE FOI FORMALITIES ON THE PARK SERVICE POLICE REPORT RELYING INSTEAD ON PRIVATE ASSURANCES IT WOULD ROUTINELY BE RELEASED WE MIGHT SUGGEST HOWEVER THAT THEY TAKE SOME NOTE OF OUR LAWSUIT WITH ALL THE BACKING AND FILLING WE ARE STARTING TO SMELL THE ISSUE OF WHETHER FOIA AND FOR THAT MATTER SPECIAL COUNSELS CAN BE INVOKED AS PART OF A COVERUP 9401310071 940131 POLITICS & POLICY MADISON EMPLOYEES SAY EXECUTIVE PROMISED REIMBURSEMENT FOR CONTRIBUTIONS TO CLINTON BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK EMPLOYEES AT A SAVINGS AND LOAN OWNED BY BILL CLINTON'S FORMER BUSINESS PARTNER JAMES MCDOUGAL HAD A SECRET INCENTIVE TO MAKE A POLITICAL CONTRIBUTION IN 1985 TO MR CLINTON THEN GOVERNOR OF ARKANSAS IT WOULDN'T COST THEM A DIME THE EMPLOYEES CONTEND IN INTERVIEWS THAT A MADISON GUARANTY SAVINGS & LOAN EXECUTIVE PROMISED THAT THEY WOULD BE REIMBURSED FOR WHATEVER THEY CONTRIBUTED AT AN APRIL 1985 FUNDRAISER TO HELP RETIRE MR CLINTON'S 1984 CAMPAIGN DEBT OF 50000 H DON DENTON A SENIOR VICE PRESIDENT SAYS HE WAS REIMBURSED FOR A 500 CONTRIBUTION BUT REFUSES TO SAY WHETHER HE WAS REPAID BY MR MCDOUGAL OR WITH MADISON GUARANTY FUNDS IT COULD BE INCRIMINATING MR DENTON EXPLAINS IF MADISON FUNDS WERE USED SUCH REIMBURSEMENT COULD BE AN ILLEGAL MISUSE OF FEDERALLY INSURED DEPOSITS IF MR MCDOUGAL'S OWN MONEY WAS USED IT COULD BE AN EVASION OF POLITICAL CONTRIBUTION LIMITS UNDER STATE ELECTION LAW THERE IS NO EVIDENCE THAT EITHER BILL OR HILLARY RODHAM CLINTON KNEW OF THE ALLEGED FUNDRAISING GAMBIT BUT IT PROMISES TO BE YET ANOTHER POLITICAL EMBARRASSMENT ARISING FROM THEIR ENTANGLEMENT WITH JIM MCDOUGAL THE S&L EXECUTIVE WHO RODE MADISON GUARANTY 50 MILLION INTO THE RED WHILE FAVORING POLITICIANS WITH LOANS AND INVESTMENT OPPORTUNITIES ROBERT B FISKE JR THE NEWLY APPOINTED SPECIAL COUNSEL IS SETTING UP SHOP HERE IN LITTLE ROCK TAKING OVER THE GOVERNMENT'S INVESTIGATION OF THE CLINTONS' WHITEWATER DEVELOPMENT CO PARTNERSHIP WITH MR MCDOUGAL FEDERAL INVESTIGATORS ARE TRYING TO DETERMINE WHETHER MADISON GUARANTY FUNDS WERE ILLEGALLY DIVERTED INTO THE WHITEWATER VACATIONHOME DEVELOPMENT IN NORTHERN ARKANSAS OR INTO THE CAMPAIGN COFFERS OF MR CLINTON AND OTHER POLITICIANS OF SPECIAL INTEREST ARE THE FUNDS RAISED AT THE COCKTAIL PARTY THAT MR MCDOUGAL HOSTED IN HIS THRIFT'S ART DECO LOBBY AMONG THE 50 MADISON EMPLOYEES DIRECTORS AND BORROWERS IN ATTENDANCE WAS A SENIOR EXECUTIVE WHO HELPED MR MCDOUGAL SOLICIT CONTRIBUTIONS THE EXECUTIVE WHO WOULD SPEAK ONLY ON THE CONDITION OF ANONYMITY SAYS HE MAY HAVE MADE A CONTRIBUTION HIMSELF HE DOESN'T RECALL WHETHER IT WAS 500 OR 1000 WITH THE UNDERSTANDING THAT HE WOULD BE PAID BACK DAVIS FITZHUGH VICE PRESIDENT OF A MADISON SUBSIDIARY SAYS HE WAS APPROACHED BY THIS EXECUTIVE BUT DECLINED TO GO ALONG WITH THE FUNDRAISING STRATAGEM I WAS LEFT WITH THE DISTINCT IMPRESSION THAT I WOULD BE REIMBURSED SAYS MR FITZHUGH IT WASN'T SOMETHING I WANTED TO GET INVOLVED IN MEANWHILE ANOTHER EMPLOYEE LARRY KUCA WHO AT THE TIME WAS MANAGING A MADISON REALESTATE VENTURE ON CAMPOBELLO ISLAND OFF THE CANADIAN COAST SAYS HE CONTRIBUTED 1000 TO GOV CLINTON AT MR MCDOUGAL'S REQUEST BUT WITHOUT A PROMISE OF REPAYMENT INSTEAD HE SAYS MR MCDOUGAL POINTED OUT HOW MUCH MR KUCA WOULD BE REAPING IN REALESTATE COMMISSIONS THESE CONTRIBUTIONS ALL PERSONAL CHECKS HELPED SWELL THE TOTAL TAKE FROM THE FUNDRAISER TO ABOUT 30000 FEDERAL INVESTIGATORS ALREADY ARE INQUIRING ABOUT 12000 IN CASHIER'S CHECKS ISSUED BY MADISON INCLUDING SOME FROM MR MCDOUGAL'S PERSONAL AND CORPORATE ACCOUNTS ONE CHECK FOR 3000 BORE THE NAME OF KEN PEACOCK SON OF A MADISON DIRECTOR AND A MAJOR BORROWER AT THE TIME OF THE FUNDRAISER MR PEACOCK WAS A 24YEAROLD COLLEGE STUDENT LAST MONTH HE DENIED MAKING SUCH A CONTRIBUTION INVESTIGATORS ARE ALSO TRYING TO TRACE THE SOURCE OF FUNDS FOR A 3000 CASHIER'S CHECK FROM MR MCDOUGAL MR CLINTON USED THE CONTRIBUTIONS TO HELP PAY OFF THE 50000 LOAN THAT HE HAD OBTAINED FROM A BANK IN CHERRY VALLEY ARK TOWARD THE CLOSE OF THE 1984 CAMPAIGN FEDERAL INVESTIGATORS HAVE SUBPOENAED RECORDS FROM THE CHERRY VALLEY BANK AS WELL AS WHATEVER RECORDS ARE STILL AVAILABLE FROM THE 1984 CAMPAIGN CERTAIN RECORDS INCLUDING THE LIST OF CONTRIBUTORS FROM THE FUNDRAISER HAVE BEEN DISCARDED OR LOST MR MCDOUGAL WHO COULDN'T BE REACHED FOR COMMENT HAS DENIED ILLEGALLY FUNNELING MONEY INTO THE CAMPAIGN OR THE WHITEWATER VENTURE HIS ATTORNEY SAM HEUER SAYS MR MCDOUGAL DIDN'T DO ANYTHING WRONG AND DISMISSES THE NOTION OF EMPLOYEE REIMBURSMENT FOR CONTRIBUTIONS AS JUST ANOTHER SMOKE TRAIL FOR MR MCDOUGAL THROWING A PARTY FOR THE GOVERNOR WAS HARDLY EXTRAORDINARY BY ALL ACCOUNTS MR MCDOUGAL A FAILED POLITICIAN HIMSELF REVELED IN HOBNOBBING WITH ELECTED OFFICIALS HE ALSO SOUGHT TO INGRATIATE HIMSELF BY DOING FINANCIAL FAVORS SUCH AS CUTTING THE CLINTONS INTO THE WHITEWATER REALESTATE DEAL IN 1978 AND PUTTING HILLARY CLINTON'S LAW FIRM ON A 2000AMONTH RETAINER IN APRIL 1985 AFTER THE GOVERNOR HAD COMPLAINED ABOUT BEING FINANCIALLY STRAPPED MCDOUGAL BRAGGED ABOUT WHAT HE COULD GET DONE ABOUT GREASING THE SKIDS SAYS MR FITZHUGH AND IT APPEARS THAT HE DID GET THINGS DONE SUCH AS FINDING RENTERS FOR OFFICE SPACE AT MADISON GUARANTY THE ARKANSAS DEVELOPMENT FINANCE AUTHORITY A CLINTON BRAINCHILD MOVED INTO THE THRIFT'S'S MAROON HEADQUARTERS IN 1985 WHEN OFFICES IN A MORE CONVENIENT LOCATION LITTLE ROCK'S FINANCIAL DISTRICT WERE GOING UNRENTED AT COMPARABLE RATES ANOTHER STATE AGENCY LEASED A MCDOUGALRENOVATED SERVICE STATION ACROSS THE STREET FROM THE S&L FOR 7432 A MONTH ADDING TO MR MCDOUGAL'S IMAGE AS A MAN WHO COULD GET THINGS DONE WAS MR CLINTON'S MARCH 1985 APPOINTMENT OF JOHN LATHAM MADISON GUARANTY'S CHIEF EXECUTIVE OFFICER TO THE ARKANSAS SAVINGS AND LOAN BOARD IN BANKING AND POLITICAL CIRCLES BEFORE MR MCDOUGAL WAS OUSTED FROM MADISON BY FEDERAL REGULATORS IN MID1986 AND TRIED AND ACQUITTED OF BANK FRAUD CHARGES IN 1990 HE WAS WIDELY ADMIRED FOR HIS FOLKSY CHARM AND PERSUASIVENESS MR KUCA RECALLS HOW MR MCDOUGAL TELEPHONED HIM ON CAMPOBELLO ISLAND AND TALKED HIM INTO CONTRIBUTING 1000 TO GOV CLINTON IT WASN'T GIVE THE MONEY OR ELSE' HE SAYS IT WAS ACTUALLY VERY POLITE AT THE TIME MR KUCA WAS EARNING 100000 A YEAR IN COMMISSIONS PLUS A SMALL SALARY SELLING OCEANFRONT LOTS HE POINTED OUT HOW WELL THINGS WERE GOING MR KUCA SAYS HE DIDN'T HAVE TO BE CRUDE ABOUT IT ON THE OTHER HAND THE MADISON EXECUTIVE WHO SOLICITED CONTRIBUTIONS IN LITTLE ROCK WAS DECIDEDLY MORE BLUNT ACCORDING TO DON DENTON THE THRIFT'S SENIOR VICE PRESIDENT HE SAID I NEED A CHECK FOR 500' I MADE OUT MY CHECK TO BILL CLINTON I WAS REIMBURSED FOR IT 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 9401310070 940131 ENTERPRISE FINANCING SMALL BUSINESS ENTREPRENEURIAL FORUMS DRAW CROWDS IN UNLIKELY PLACES BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL FAR FROM SILICON VALLEY OR WALL STREET ENTREPRENEUR FORUMS PROLIFERATE AT THE FLORIDA VENTURE FORUM'S ANNUAL CONFERENCE HELD AT CORAL GABLES EARLIER THIS MONTH 21 COMPANIES MADE PITCHES FOR FINANCING FINANCIERS FROM 18 VENTURE CAPITAL FIRMS ATTENDED SOME FROM AS FAR AWAY AS MINNESOTA AND MASSACHUSETTS THE FLORIDA SHOWCASE IS ONE OF MANY OUTSIDE THE HIGHTECH CAPITALS THAT SMALL COMPANIES NOW CAN ATTEND TO PUBLICIZE THEIR BUSINESSES AND ATTRACT INVESTORS SIMILAR EVENTS IN OTHER CITIES SUCH AS BALTIMORE CLEVELAND DES MOINES IOWA AND INDIANAPOLIS ARE ATTRACTING ENTHUSIASTIC SMALLBUSINESS AUDIENCES REPRESENTATIVES OF MORE THAN 60 COMPANIES ATTENDED BALTIMORE'S MIDDLE ATLANTIC VENTURE CONFERENCE IN OCTOBER AND IOWA'S CONFERENCE LAST SEPTEMBER DREW PEOPLE FROM ABOUT 15 COMPANIES AND MORE THAN 30 VENTURE CAPITALISTS THE LARGE NUMBERS OF COMPANIES PARTICIPATING INDICATE THAT THE VENTURECAPITAL WORLD BEYOND THE NORTHEAST CORRIDOR AND SILICON VALLEY IS GROWING SAYS VENTURE CAPITALIST ROBERT PINKAS MANAGING GENERAL PARTNER OF BRANTLEY VENTURE PARTNERS IN CLEVELAND THESE CONFERENCES INTRODUCE INVESTORS TO REGIONAL ECONOMIES AND TO SPECIFIC COMPANIES HE SAYS FORUMS IN WHICH ENTREPRENEURS ENGAGE INVESTORS AREN'T NEW IN THE LATE 1970S AND EARLY '80S INVESTORS FLOCKED TO THE MONTEREY CALIF TECHNOLOGY CONFERENCE SPONSORED BY THE AMERICAN ELECTRONICS ASSOCIATION LATER A PLETHORA OF COPYCAT CONFERENCES DIMINISHED THE FORMAT'S IMPACT VENTURE CAPITALISTS SAY BUT WITHIN THE PAST TWO YEARS THE FORUMS HAVE CHANGED AND ARE MORE LIKELY TO LEAD TO SPECIFIC DEALS THEY ARE ATTRACTING MORE ESTABLISHED COMPANIES AND INVESTORS SAYS DAVID GILLECE A BALTIMORE ECONOMICDEVELOPMENT CONSULTANT VENTURE CAPITALISTS NOW ENCOURAGE COMPANIES IN WHICH THEY HOLD STAKES TO APPEAR AT THESE PAGEANTS TO ATTRACT NEW INVESTORS THEY HAVE BECOME REAL BUSINESSTRANSACTION EVENTS SAYS MR GILLECE THE LAST TWO FLORIDA CONFERENCES FOR EXAMPLE HAVE RESULTED IN MORE THAN 32 MILLION IN FINANCING FOR SOME COMPANIES THAT PARTICIPATED SAYS JEANNE BECKER EXECUTIVE DIRECTOR OF THE FLORIDA FORUM OF THE 65 COMPANIES THAT HAVE ATTENDED THE IOWA CONFERENCES SEVEN HAVE GAINED FINANCING THROUGH THE MEETINGS VENTURE CAPITALISTS ARE LOOKING TO THE YOUNG COMPANIES THAT PARTICIPATE IN THESE CONFERENCES BECAUSE STARTUP INVESTING IS BACK IN VOGUE SAYS RICHARD TADLER A GENERAL PARTNER OF TA ASSOCIATES BOSTON NOT EVERY COMPANY THAT WANTS TO MAKE PRESENTATIONS CAN GET IN SAYS MYRT LEVIN EXECUTIVE DIRECTOR OF THE IOWA CONFERENCE SELECTED APPLICANTS RECEIVE EXTENSIVE HELP WITH BUSINESS PLANS AND PRESENTATIONS SAYS MS LEVIN OF THE PARTICIPANTS EVEN IF THEY DON'T GET FUNDED THEY GO AWAY LEARNING A LOT ABOUT THEMSELVES THIS OF COURSE IS NOT THE MAIN OBJECT SOME VENTURE CAPITALISTS WERE BIG WINNERS IN LAST YEAR'S IPO BOOM INVESTORS IN COMPANIES WHOSE STOCK PRICES SOARED AFTER INITIAL PUBLIC OFFERINGS IN 1993 INCLUDE MORGENTHALER VENTURES CLEVELAND BANKAMERICA CAPITAL CORP COSTA MESA CALIF JH WHITNEY & CO NEW YORK GRACEHORN VENTURES CUPERTINO CALIF AND WALDEN GROUP OF VENTURE CAPITAL FUNDS SAN FRANCISCO AMONG OTHERS A SURVEY INDICATES VENTUREONE A SAN FRANCISCO RESEARCH CONCERN CONDUCTED THE STUDY COVERING 1993 IPOS OF COMPANIES BACKED BY VENTURE CAPITALISTS MORGENTHALER BANKAMERICA WALDEN AND WHITNEY ALL WERE INVESTORS IN MICROCHIP TECHNOLOGY INC A CHANDLER ARIZ CHIP MAKER BY YEAR END MICROCHIP'S STOCK HAD RISEN SIXFOLD TO 39 A SHARE FROM 650 MORGENTHALER BANKAMERICA AND GRACEHORN WERE INVESTORS IN VICAL INC A BIOTECHNOLOGY STARTUP WHOSE STOCK NEARLY TRIPLED TO 1350 FROM 5 WALDEN ALSO BENEFITED FROM A MORE THAN DOUBLING IN THE SHARE PRICE OF GYMBOREE CORP A RETAILER OF TOYS AND CLOTHES GRACEHORN'S OTHER WINNERS INCLUDED INTERLINK ELECTRONICS A MAKER OF TOUCHSENSITIVE ELECTRONIC COMPONENTS AND HOMETOWN BUFFET INC A CHAIN OF BUFFETSTYLE RESTAURANTS INTERLINK STOCK MORE THAN DOUBLED AFTER ITS IPO HOMETOWN BUFFET SHARES INCREASED BY 88 VENTUREONE ALSO LISTED CONCERNS HOLDING STAKES IN COMPANIES WHOSE STOCK PRICES NOSEDIVED AFTER THEIR IPOS THESE INCLUDED ALPHA PARTNERS MENLO PARK CALIF CROSSPOINT VENTURE PARTNERS LOS ALTOS CALIF D BLECH & CO NEW YORK NEW ENTERPRISE ASSOCIATES SAN FRANCISCO AND SCHRODER VENTURES NEW YORK AMONG OTHERS ALPHA PARTNERS HAD INVESTED IN BOTH PHOTONICS CORP AND SUPERCONDUCTOR TECHNOLOGIES INC SHARES OF PHOTONICS A COMPUTER NETWORKING COMPANY FELL 31 WHILE THOSE OF SUPERCONDUCTOR A DEVELOPER OF SUPERCONDUCTING MATERIALS DECLINED 36 CROSSPOINT ALSO AN INVESTOR IN PHOTONICS HAD ANOTHER LOSER IN ADAPTIVE SOLUTIONS INC A SPECIALTY SEMICONDUCTOR MANUFACTURER ADAPTIVE SHARES WERE DOWN 54 NEW ENTERPRISE ASSOCIATES ONE OF THE LARGEST VENTURECAPITAL FIRMS ALSO HAD SOME BIG LOSERS SIX OF THE 10 COMPANIES IN ITS PORTFOLIO DECLINED IN PRICE AFTER THEIR IPOS ITS LOSERS INCLUDED BIOSURFACE TECHNOLOGY INC A BIOTECHNOLOGY STARTUP THAT IS DEVELOPING ARTIFICIAL SKIN PRODUCTS TELOR PHARMACEUTICALS INC A MAKER OF OPTHALMIC PRODUCTS AND AUTOIMMUNE INC A STARTUP THAT IS WORKING ON IMMUNE SYSTEM DISEASES SUCH AS AIDS IN SPITE OF NEW ENTERPRISE'S PERFORMANCE THE VENTURECAPITAL FIRM HAD LITTLE DIFFICULTY RAISING A NEW 193 MILLION FUND LAST DECEMBER SBICS SAY NEW BANKING PROPOSALS WILL REDUCE THEIR ABILITY TO INVEST UNDER THE COMMUNITY REINVESTMENT ACT BANKS MUST ALLOCATE CAPITAL FOR COMMUNITYRELATED INVESTMENTS HISTORICALLY THEY HAVE RECEIVED CREDIT UNDER THE ACT FOR ALL EQUITY INVESTMENTS IN SMALL BUSINESSES THAT THEY MADE THROUGH SMALL BUSINESS INVESTMENT COMPANIES OR SBICS NEW REGULATORY GUIDELINES WILL ALLOW BANKS TO RECEIVE CRA CREDIT FOR ONLY THOSE INVESTMENTS THAT BENEFIT LOW AND MODERATEINCOME GEOGRAPHIES OR PERSONS THE NARROWER GUIDELINES WILL REDUCE THE INCENTIVE FOR BANKS TO INVEST THROUGH SBICS CONTENDS PETER F MCNEISH PRESIDENT OF THE NATIONAL ASSOCIATION OF SMALL BUSINESS INVESTMENT COMPANIES THE INDUSTRY TRADE GROUP BANKS ACCOUNT FOR ALMOST 2 BILLION OF THE ROUGHLY 3 BILLION IN ASSETS THAT SBICS CURRENTLY MANAGE AND THE LOSS OF CRA CREDIT FOR THEIR SMALLBUSINESS INVESTMENTS MIGHT FORCE THEM TO CURTAIL THEIR INVESTING SAYS MR MCNEISH STILL SOME SBICS DON'T FEEL THEY WILL BE IMMEDIATELY AFFECTED I DON'T SEE IT CHANGING THE WAY WE INVEST SAYS TOM ADAMEK PRESIDENT OF PREMIER VENTURE CAPITAL CORP THE SBIC OF PREMIER BANK IN BATON ROUGE LA THAT INVESTED 35 MILLION LAST YEAR BUT FOR BANKS THAT HAVE BEEN USING SBICS AS A WAY TO MEET CRA GUIDELINES THE NEW RULES WILL BE A BLOW HE SAYS 9401310069 940131 THE BLAME GAME' VOLATILE STANLEY JAFFE HAS SCARED PARAMOUNT BUT HASN'T FIXED IT STUDIO'S PROBLEMS CONTINUE AS BIDS SPIRAL HIGHER IS HE JUST A SCAPEGOAT SLICING JOBS SPLICING SLIVER' BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL STANLEY JAFFE WAS ANGRY AGAIN THE PRESIDENT OF PARAMOUNT COMMUNICATIONS INC A MAN WHOSE EXPLOSIVE TEMPER HAD BECOME LEGENDARY INSIDE HIS COMPANY HAD ASSEMBLED A DOZEN OR SO DIVISION HEADS AT THE FIRM'S LOS ANGELES MOVIE STUDIO AND HE WAS BERATING THEM FURIOUS MR JAFFE ROSE FROM HIS SEAT SAY TWO WITNESSES TO THE SCENE HIS VOICE GREW LOUDER UNTIL HE WAS YELLING SO HARD THAT THOUGH HE WASN'T AWARE OF IT AT FIRST HIS NOSE BEGAN TO BLEED HE DIDN'T REALIZE THAT HIS NOSE WAS STREAMING BLOOD SAYS ONE PERSON WHO WAS THERE NO ONE WANTED TO SAY ANYTHING WE JUST SAT THERE IN A MIXED EMOTION OF HORROR AND JOY MR JAFFE DENIES THE TALE BUT THE VOLATILE 52YEAROLD EXECUTIVE ADMITS TO WHAT HE HAS CALLED AN INYOURFACE MANAGEMENT STYLE A ONETIME MOVIE PRODUCER WHOSE BIGGEST HIT WAS FATAL ATTRACTION MR JAFFE HAS LARGELY OVERSEEN PARAMOUNT'S DAYTODAY OPERATIONS SINCE 1991 WHEN HE WAS BROUGHT IN BY PARAMOUNT'S HIGHPROFILE CHAIRMAN MARTIN S DAVIS ALTHOUGH MR JAFFE HAS MOSTLY STAYED BEHIND THE SCENES IN THE BATTLE BETWEEN VIACOM INC AND QVC NETWORK INC TO BUY PARAMOUNT HE HAS BEEN A SWAGGERING AND EVEN FRIGHTENING PRESENCE INSIDE THE COMPANY BUT BY MANY MEASURES HIS THREEYEAR TENURE HAS BEEN A DISAPPOINTMENT WHEN HE WAS HIRED PARAMOUNT'S BIG HOLLYWOOD STUDIO THE COMPANY'S LARGEST UNIT WAS MIRED IN PROBLEMS ITS POOR RESULTS HAD DRAGGED DOWN EARNINGS FOR THE WHOLE COMPANY WHICH ALSO OWNS PUBLISHER SIMON & SCHUSTER AND THE KNICKERBOCKERS BASKETBALL AND RANGERS HOCKEY TEAMS YET MR JAFFE WHO HAD LITTLE EXPERIENCE AS A CORPORATE EXECUTIVE HASN'T FIXED MANY OF THE TROUBLES INCLUDING TOO FEW MOVIE RELEASES AND TOO MANY FLOPS ON THE ORDER OF LAST YEAR'S CONEHEADS EVEN AS PARAMOUNT'S SHARE PRICE RISES IN THE OVERHEATED BIDDING WAR ITS EARNINGS ARE LACKLUSTER THROWING INTO QUESTION THE VALUE OF THE VERY ASSETS VIACOM AND QVC ARE BATTLING TO SEIZE ITS CROWN JEWEL THE PARAMOUNT STUDIO IS MIRED IN A DEEP BOXOFFICE SLUMP THAT EVEN TWO BIG HITS THE FIRM AND INDECENT PROPOSAL HAVEN'T REVERSED STEADY GAINS AT SIMON & SCHUSTER HAVEN'T BEEN ENOUGH TO COMPENSATE FOR THE STUDIO'S POOR RESULTS MORALE HAS PLUNGED NOW MR DAVIS IS FAULTING HIS SECONDINCOMMAND'S MANAGEMENT FOR PARAMOUNT'S LOOMING LOSS OF INDEPENDENCE ACCORDING TO INSIDERS AND DIRECTORS THE TENSION BETWEEN THE TWO MEN ONCE FRIENDS IS PALPABLE THE GRUFF PLAINSPOKEN MR DAVIS HAS BEEN BADMOUTHING HIS HANDPICKED DEPUTY TO DIRECTORS ASSOCIATES AND INDUSTRY EXECUTIVES THEY SAY JAFFE BLEW MY COMPANY ONE SENIOR INSIDER QUOTES MR DAVIS AS HAVING SAID IN AN INTERVIEW IN HIS SPRAWLING 42NDFLOOR OFFICE OVERLOOKING NEW YORK'S SNOWCOVERED CENTRAL PARK MR DAVIS OFFERS A TEPID DENIAL OF SUCH REPORTS HE'S DONE HIS JOB WE ARE SATISFIED HE SAYS PALE AND BATTLING HIS THIRD COLD SINCE THE FOURANDAHALFMONTH TAKEOVER STRUGGLE BEGAN MR DAVIS 66 DECLINES TO ELABORATE WHEN ASKED WHETHER MR JAFFE HAS RETAINED THE BOARD'S CONFIDENCE MR DAVIS SAYS YES BUT QUICKLY ADDS THAT THERE ARE VARIED VIEWS OF DIRECTORS ABOUT HIS DEPUTY SOME JAFFE SUPPORTERS CHARGE THAT MR DAVIS AND HIS BOARD ARE CASTING THE PARAMOUNT PRESIDENT AS A SCAPEGOAT AFTER ALL MR JAFFE DIDN'T START PARAMOUNT'S TROUBLES AND HIS BOSS IS THE ONE WHO HAS SHAPED PARAMOUNT AND DETERMINED ITS COURSE THE BLAME GAME SOME INSIDERS ARE CALLING THE FINGERPOINTING MR JAFFE'S SUPPORTERS CONTEND THAT HE HAS GOTTEN THE STUDIO BACK ON TRACK WITH A STRONG SLATE OF FILMS SCHEDULED FOR THIS YEAR UNDER STANLEY'S AEGIS THEY HAVE REALLY REVITALIZED THE STUDIO SAYS JAMES WIATT PRESIDENT OF INTERNATIONAL CREATIVE MANAGEMENT THE BIG TALENT AGENCY STILL MANY CURRENT AND FORMER PARAMOUNT EXECUTIVES SAY MR JAFFE'S HOUR UNDER THE SPOTLIGHT IS LONG OVERDUE MR JAFFE CONCEDES THAT HE IS LIKELY TO BE OUT OF A JOB ONCE PARAMOUNT IS UNDER A NEW OWNER WHETHER IT IS FRIENDLY SUITOR VIACOM OR UNINVITED BIDDER QVC AND MANY PARAMOUNT INSIDERS ALONG WITH HOLLYWOOD PRODUCERS AND OTHERS WHO HAVE WORKED WITH THE STUDIO COULDN'T BE HAPPIER STORIES ABOUND OF MR JAFFE'S HARSH TREATMENT OF SUBORDINATES SOMETIMES BLISTERING EVEN BY THE STANDARDS OF HOLLYWOOD WHERE SCREAMING IS A COMMON MANAGEMENT TOOL DURING HIS TENURE PARAMOUNT HAS HIRED HIS RELATIVES AND FRIENDS FOR IMPORTANT JOBS EVEN THOUGH THE COMPANY FROWNS ON NEPOTISM HE HAS SPENT LAVISHLY FROM PARAMOUNT COFFERS BUT PUT THE REST OF THE COMPANY ON A DIET OF AUSTERITY RATHER THAN ARTICULATE A STRATEGIC VISION FOR THE COMPANY HE HAS MICROMANAGED FOCUSING ON THE MINUTIAE OF CASTING OR EDITING MOVIES SOMETIMES MAKING END RUNS AROUND OTHER EXECUTIVES AND ALIENATING EMPLOYEES IN THE PROCESS AND HE HAS LAVISHED WHAT SOME INSIDERS CONSIDER AN INORDINATE AMOUNT OF ATTENTION ON THE SPORTS TEAMS WHICH ACCOUNT FOR ONLY ABOUT 1 OF PARAMOUNT'S 43 BILLION IN REVENUE IN A THREEHOUR INTERVIEW AN ALTERNATELY CHARMING AND BLUNT MR JAFFE ADMITS HE DOESN'T SUFFER FOOLS WELL AND HAS AN EXPLOSIVE TEMPER I CAN INTIMIDATE PEOPLE HE SAYS HE CALLS THE STUDIO'S BUMPY FINANCIAL PERFORMANCE AND THE LOW NUMBER OF FILMS IT HAS RELEASED HIS ONE DISAPPOINTMENT BUT HE SAYS THAT HE IS PROUD OF HIS ACCOMPLISHMENTS AND THAT PARAMOUNT IS POISED TO REAP THE FINANCIAL REWARDS OF HIS WORK IN THE NEXT FISCAL YEAR SECURITIES ANALYSTS HOWEVER ARE TRIMMING THEIR 1995 EARNINGS PROJECTIONS SOME BY AS MUCH AS 20 FROM INITIAL ESTIMATES BASED ON PARAMOUNT'S CONTINUING BOXOFFICE MALAISE ANALYSTS ESTIMATE EARNINGS FOR FISCAL 1994 ENDING APRIL 30 WILL BE ROUGHLY FLAT TO DOWN BEFORE REBOUNDING SOMEWHAT IN FISCAL 1995 FROM THE START MR JAFFE WAS REGARDED AS IN SOME WAYS AN ODD CHOICE FOR THE CORPORATE POST AT PARAMOUNT ALTHOUGH THERE WAS NO QUESTION ABOUT HIS KNOWLEDGE OF MOVIES THE SON OF RETIRED COLUMBIA PICTURES CHAIRMAN LEO JAFFE MR JAFFE GREW UP IN NEW ROCHELLE NY IMMERSED IN THE DETAILS OF MOVIEMAKING AT 28 HE PRODUCED HIS FIRST FEATURE FILM THE HIT GOODBYE COLUMBUS IN THE 1970S HE WAS A SENIOR EXECUTIVE AT BOTH COLUMBIA AND PARAMOUNT BUT HE SOON LEFT THE MANAGEMENT TRACK SPENDING THE 1980S PRODUCING MOVIES FOR THE PARAMOUNT STUDIO WITH PARTNER SHERRY LANSING THEIR BIGGEST HIT FATAL ATTRACTION GROSSED ABOUT 345 MILLION WORLDWIDE HE HAD DIRECTED ONE MOVIE WITHOUT A TRACE AND WAS SET TO DIRECT ANOTHER SCHOOL TIES IN 1991 WHEN HE BEGAN TO DISCUSS THE PROBLEMS AT PARAMOUNT'S STUDIO WITH MR DAVIS WHOM HE HAD KNOWN FOR MORE THAN TWO DECADES AT THE TIME THE STUDIO WAS HAMPERED BY BLOATED COSTS TOO FEW MOVIES AND A SERIES OF BOXOFFICE BOMBS SUCH AS THE TWO JAKES AND DAYS OF THUNDER MR DAVIS WAS UNDER PRESSURE FROM SHAREHOLDERS TO IMPROVE THE STOCK PRICE AND TO LINE UP A SUCCESSOR SINCE HE HAD OPERATED THE PARENT COMPANY WITHOUT A SECONDINCOMMAND FOR NEARLY SIX YEARS MR JAFFE WAS DETERMINED TO BE THAT PERSON CONVINCED HE HAD FOUND HIS SUCCESSOR MR DAVIS NAMED MR JAFFE TO THE NEW POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER BUT HIS DEPUTY ACCUSTOMED TO MOVIEMAKING NOT MANAGING WASTED NO TIME IN ALIENATING SCORES OF EMPLOYEES FRANK MANCUSO PARAMOUNT'S STUDIO CHIEF AND A 30YEAR COMPANY VETERAN WAS SO ANGERED BY THE MOVE THAT HE REFUSED TO REPORT TO MR JAFFE CITING CONTRACT TERMS THAT SAID HE WOULD REPORT ONLY TO MR DAVIS HE FILED SUIT THE APPROXIMATELY 25 MILLION SETTLEMENT THAT PARAMOUNT ENDED UP PAYING HIM CONTRIBUTED TO A 52 MILLION CHARGE AT THE COMPANY IN THE 1991 FISCAL YEAR ENDED OCT 31 THE FIRM HAS SINCE SHIFTED TO AN APRIL FISCAL YEAR RANKANDFILE EMPLOYEES WEREN'T MUCH HAPPIER ONE OF MR JAFFE'S FIRST MOVES WAS TO EMBARK ON A TOUR OF OPERATIONS ORDERING DISMISSALS ALONG THE WAY OF ABOUT 400 STAFFERS IN ITS 1991 ANNUAL REPORT PARAMOUNT SAID IT EXPECTED TO REALIZE MORE THAN 50 MILLION IN OVERHEAD REDUCTIONS YET AS THE AX WAS FALLING MR JAFFE RILED EMPLOYEES WITH DISPLAYS OF HIS OWN INDULGENCE HG MAGAZINE RAN A PHOTO SPREAD OF HIS 32ACRE ESTATE IN UPSTATE NEW YORK WHICH HE HAD JUST COMPLETELY RENOVATED WITH HIS SECOND WIFE THE ARTICLE LAVISHED ATTENTION ON HIS PRICELESS COLLECTION OF ENGLISH ANTIQUES AND NOTED THAT HE SPARED NO EXPENSE MR JAFFE WAS QUOTED AS SAYING THAT HE COULD HAVE BOUGHT A HOUSE FOR THE PRICE OF THE DECORATIVE TRIM LATER PARAMOUNT BUILT A SCREENING ROOM FOR HIM THERE AT A COST OF 15 MILLION IT BELONGS TO PARAMOUNT BUT NOTES A PROXY STATEMENT MR JAFFE HAS AN OPTION TO BUY IT AT A DISCOUNT SHOULD HE NO LONGER BE ASSOCIATED WITH THE COMPANY MR JAFFE ALSO HAD PARAMOUNT BUY A SECOND CORPORATE JET FOR 6 MILLION OR 7 MILLION INSIDERS SAY HE WANTED IT LARGELY TO FERRY HIM BETWEEN NEW YORK AND THE HOLLYWOOD STUDIO AS WELL AS TO FLY HIM TO KNICKS AND RANGERS GAMES SINCE THE OTHER CORPORATE JET WAS OFTEN USED BY EXECUTIVES AND MOVIE STARS MR JAFFE REPLIES THAT THE JET WASN'T FOR HIS EXCLUSIVE USE AND SAYS HE REMEMBERS USING IT ONLY ONCE TO TRAVEL TO A GAME THE PLANE WAS A NECESSARY AFFORDABLE TOOL TO RUN THE COMPANY HE SAYS THE BELTTIGHTENING AT THE REST OF THE COMPANY DIDN'T SEEM TO DENT THE GENEROUS REWARDS MESSRS JAFFE AND DAVIS REAPED SINCE JOINING THE COMPANY MR JAFFE HAS COLLECTED A PACKAGE OF STOCK AND STOCK OPTIONS WORTH ABOUT 60 MILLION BEFORE HIS COSTS UNDER QVC'S CURRENT OFFER MR DAVIS'S CURRENT STOCK POSITION WOULD BE WORTH ABOUT 155 MILLION ON TOP OF THAT PARAMOUNT HAS PAID MR JAFFE AT LEAST 7 MILLION IN SALARY BONUSES AND LONGTERM CASH COMPENSATION AS WELL 1 MILLION UNDER HIS OLD PRODUCTION DEAL WITH THE COMPANY AND HIS EMPLOYMENT CONTRACT HOLDS THAT IF A NEW OWNER BOOTS HIM OR IF HE QUITS FOR GOOD REASON HE COLLECTS HIS ANNUAL SALARY OF 760000 THROUGH FEBRUARY 1997 DESPITE THE FIRINGS HE ORDERED MR JAFFE'S RELATIVES AND ACQUAINTANCES BEGAN APPEARING ON THE PAYROLL IN LATE 1991 HIS SON ROBERT THEN 26 JOINED THE STUDIO AS A 125000AYEAR VICE PRESIDENT AT PARAMOUNT'S MUSIC PUBLISHING ARM FAMOUS MUSIC PUBLISHING COS INDUSTRY VETERAN IRWIN ROBINSON A LONGTIME JAFFE ACQUAINTANCE WAS HIRED FOR THE NEW POST OF CHIEF EXECUTIVE MR ROBINSON THEN REPLACED FAMOUS MUSIC'S PRESIDENT WITH IRA JAFFE THE PARAMOUNT PRESIDENT'S BROTHER WHO HAD WORKED WITH MR ROBINSON IN THE PAST THE HIRES AT COMBINED ANNUAL SALARIES OF 625000 DON'T APPEAR TO HAVE PAID OFF PROFITS AT FAMOUS MUSIC WHICH OWNS MOON RIVER FLASHDANCE AND OTHER TUNES FROM PARAMOUNT MOVIES HAVE PLUNGED 50 TO 75 FROM PROFIT LEVELS UNDER PREVIOUS MANAGEMENT SAY PEOPLE FAMILIAR WITH THE RESULTS PARAMOUNT CONCEDES THAT PROFITS ARE OFF BUT SAYS THE DROP IS LESS THAN 50 MR JAFFE VIGOROUSLY DEFENDS PARAMOUNT'S HIRING OF MR ROBINSON WHO ONCE HEADED THORN EMI PLC'S MUSIC PUBLISHING COMPANY HE SAYS HE HAD NO ROLE IN HIS BROTHER'S HIRING AND ADDS THAT THE TWO MEN HAVE TRANSFORMED PARAMOUNT'S SMALL MUSIC PUBLISHING OPERATION EXPANDING IT INTO CONTEMPORARY MUSIC AND LESSENING ITS DEPENDENCE ON SOUNDTRACKS HE ALSO PASSIONATELY DEFENDS HIRING HIS SON I THINK HE COULD PRODUCE MOVIES TOMORROW MR JAFFE SAYS ADDING IT'S NOT MY FAULT THAT I HAVE A TERRIFIC SON MR JAFFE'S GRATING STYLE AND EXCESSES MIGHT HAVE BEEN OVERLOOKED HAD HE TURNED AROUND PARAMOUNT'S FORTUNES AND DURING HIS FIRST YEAR IT LOOKED AS IF HE WERE ON HIS WAY PROPELLED BY THE HITS WAYNE'S WORLD AND ADDAMS FAMILY AND BY JAFFEIMPOSED COST CUTS THE ENTERTAINMENT GROUP'S OPERATING PROFITS SOARED TO A NEARRECORD 2796 MILLION FOR FISCAL 1992 AT PARAMOUNT'S ANNUAL MEETING IN MARCH 1992 MR JAFFE SAID PARAMOUNT'S HOUSE HAD BEEN PUT BACK IN ORDER FOR YEARS TO COME IN ALL MY YEARS OF BEING ASSOCIATED WITH STUDIOS HE TOLD THE ASSEMBLED SHAREHOLDERS I'VE NEVER SEEN ONE SO RICH IN BIG COMMERCIAL TITLES AND COMMITMENTS HE ADDED PARAMOUNT IS FINALLY POSITIONED FOR THE FUTURE HIS OPTIMISM IT TURNS OUT WAS PREMATURE THE SUCCESS OF WAYNE'S WORLD AND ADDAMS FAMILY BOTH IN THE WORKS BEFORE MR JAFFE ARRIVED MASKED ONGOING PROBLEMS HITS CONTINUED TO BE FAR OUTNUMBERED BY EXPENSIVE FLOPS INCLUDING THE ANIMATED FEATURES COOL WORLD AND BEBE'S KIDS AND THE CHRISTOPHER COLUMBUS DUD 1492 THE CONQUEST OF PARADISE FOR WHICH MR JAFFE PERSONALLY GAVE THE GOAHEAD MR JAFFE PLEDGED THAT THE STUDIO WOULD RELEASE AT LEAST 25 PICTURES A YEAR BUT IT HASN'T YET COME CLOSE THIS YEAR ONLY 15 FILMS ARE BOUND FOR THE BIG SCREEN THOUGH HE INDICATES ANOTHER 14 WILL START PRODUCTION BIG RIVALS RELEASE BETWEEN 25 AND 40 A YEAR HOLLYWOOD EXECUTIVES LARGELY FAULT MR JAFFE FOR THE SLUGGISHNESS INSTEAD OF FOCUSING ON LARGER ISSUES SUCH AS THE VOLUME AND MIX OF RELEASES SAY PARAMOUNT INSIDERS MR JAFFE HAS TENDED TO TAKE A HANDSON ROLE IN SPECIFIC PROJECTS OFTEN GETTING BOGGED DOWN IN MINUTIAE AND CONTRIBUTING TO DELAYS HE PERSONALLY HELPED EDIT SLIVER THE STEAMY SHARON STONE MOVIE THAT WAS A BIG DISAPPOINTMENT IN THE US ALTHOUGH IT DID WELL OVERSEAS HE ALSO HAS BEEN CLOSELY INVOLVED WITH BEVERLY HILLS COP III WHICH WAS INITIALLY SCHEDULED TO COME OUT LAST YEAR BUT NOW WON'T APPEAR UNTIL SOMETIME THIS YEAR HIS APPROACH HAS MADE IT DIFFICULT FOR HIM TO HANG ON TO TALENTED MANAGERS IN THE ENTERTAINMENT DIVISION HIS MOST VISIBLE FALLINGOUT WAS WITH BRANDON TARTIKOFF THE FORMER NBC PROGRAMMING WHIZ WHOM HE RECRUITED HIMSELF IN 1991 AND WHO LASTED JUST 15 MONTHS MR TARTIKOFF SAID HE WAS LEAVING TO HELP WITH THE SLOW RECOVERY OF HIS YOUNG DAUGHTER WHO HAD BEEN HURT IN A CAR ACCIDENT BUT HE ALSO WAS FED UP WITH MR JAFFE'S MEDDLING PEOPLE CLOSE TO MR TARTIKOFF SAY THEY SAY MR JAFFE SOMETIMES GAVE THE GOAHEAD TO PROJECTS WITHOUT CONSULTING MR TARTIKOFF HE WOULD TAKE CHARGE OF CASTING DECISIONS NIXING ONE ACTOR CHOSEN FOR A ROLE IN FAVOR OF SOMEONE HE LIKED BETTER MR JAFFE CONCEDES HE TOOK A HANDSON ROLE AND CLASHED WITH MR TARTIKOFF BUT HE PUTS THE BLAME FOR THE LOW FILM OUTPUT LARGELY ON MR TARTIKOFF WHO HE SAYS DIDN'T GET ENOUGH FILM PROJECTS INTO THE PIPELINE FOR HIS PART MR TARTIKOFF NOW AN INDEPENDENT PRODUCER SAYS THE DEVELOPMENT CUPBOARD WAS BARE WHEN HE ARRIVED HE SAYS HE STOCKED IT WITH PROJECTS THAT WILL CARRY THE STUDIO THROUGH THE NEXT SEVERAL YEARS GETTING BLAMED FOR UNSUCCESSFUL FILMS SUCH AS 1492' THE FLOP MR JAFFE APPROVED AND NOT GETTING CREDIT FOR SUCCESS SUCH AS INDECENT PROPOSAL' AND THE FIRM' WHICH I DID GREENLIGHT SEEMS TO BE AN UNFORTUNATE FACET OF BEING A MOTIONPICTURE CHAIRMAN EMERITUS MR TARTIKOFF SAYS MR JAFFE ULTIMATELY INSTALLED HIS LONGTIME PRODUCING PARTNER MS LANSING AT THE HELM OF THE MOVIE STUDIO SHE AND MR JAFFE HAVE GIVEN THE GOAHEAD TO AMONG OTHER PROJECTS AN ALREADY OVERBUDGET BASKETBALL FLICK CALLED BLUE CHIP THEY ALSO CHOSE ITS DIRECTOR MS LANSING'S HUSBAND WILLIAM FRIEDKIN WHO DIRECTED THE FRENCH CONNECTION BY EARLY LAST YEAR AT LEAST ONE PARAMOUNT BOARD MEMBER JAMES PATTISON A CANADIAN INDUSTRIALIST HAD SOURED ON MR JAFFE ACCORDING TO PEOPLE CLOSE TO THE BOARD HE FELT THAT MR JAFFE WASN'T UP TO THE JOB THAT HE WAS STUBBORN AND THAT HE MISTREATED EMPLOYEES REACHED AT HIS VANCOUVER OFFICE MR PATTISON SAYS HE IS TOO CLOSE TO THE MATTER AND DOESN'T WANT TO TALK ABOUT IT ONE PERSON WHO HAS SPOKEN OUT PUBLICLY IS PRODUCER DAVID KIRKPATRICK HE HAS SUED PARAMOUNT IN LOS ANGELES SUPERIOR COURT CLAIMING THE STUDIO RENEGED ON A PRODUCTION AGREEMENT BECAUSE OF A PATTERN OF REVENGE ON THE PART OF MR JAFFE ACCORDING TO THE SUIT IN 1990 MR KIRKPATRICK WHO WAS THEN HEAD OF PRODUCTION AT PARAMOUNT HAD BEEN ORDERED BY HIS BOSSES TO SLICE THE BUDGET ON MR JAFFE'S AND MS LANSING'S SCHOOL TIES A FILM ABOUT A JEWISH STUDENT WHO CONFRONTS ANTISEMITISM AT A NEW ENGLAND PREP SCHOOL THE CUTS INFURIATED MR JAFFE THE SUIT ALLEGES AND WHEN HE LANDED HIS CURRENT JOB MR KIRKPATRICK WAS FIRED MR KIRKPATRICK WAS GIVEN A PRODUCTION AGREEMENT WITH PARAMOUNT BUT IN OCTOBER THE SUIT SAYS MS LANSING TRIED TO END IT WHEN HE ASKED ABOUT A SETTLEMENT THE SUIT ALLEGES THE STUDIO EVICTED HIM FROM HIS OFFICE ON THE LOT AND THREW HIS FURNITURE ONTO A LAWN PARAMOUNT CALLS THE SUIT BASELESS AND WITHOUT MERIT ALTHOUGH MR JAFFE HAS HAD A HEAVY HAND AT THE STUDIO HE HAS HAD FAR LESS TO DO WITH THE SIMON & SCHUSTER PUBLISHING GROUP HOWEVER AUTHOR CHRISTOPHER BYRON SAYS A BOOK HE WROTE IN WHICH MR JAFFE'S WIFE WAS MENTIONED WAS CHANGED THE 1992 BOOK SKINTIGHT CHRONICLED THE BATTLE BETWEEN BLUEJEANS MAKERS GUESS AND JORDACHE MR BYRON SAYS SIMON & SCHUSTER ASKED HIM TO EXCISE MATERIAL ON ONE OF THE CENTRAL CHARACTERS MELINDA MARCIANO THE EXWIFE OF THE GUESS FOUNDER AND NOW THE WIFE OF STANLEY JAFFE WHEN HE BALKED MR BYRON SAYS SIMON & SCHUSTER SLASHED THE NUMBER OF PLANNED PRINTINGS AND CANCELED A PROMOTIONAL TOUR THE BOOK BOMBED A SIMON & SCHUSTER SPOKESMAN SAYS THAT THERE WAS NO INTERFERENCE BY PARAMOUNT CORPORATE HEADQUARTERS AND THAT EDITORS ASKED FOR CHANGES BECAUSE THEY IDENTIFIED LIBEL ISSUES CONCERNING MS MARCIANO HE SAYS THE BOOK RECEIVED THE NORMAL PROMOTIONAL AND PUBLICITY EFFORTS MR JAFFE SAYS HE DIDN'T INTERFERE WITH THE BOOK AND HASN'T READ IT MORE THAN ALMOST ANYTHING ELSE PARAMOUNT INSIDERS SAY SPORTS SEEM TO DOMINATE MR JAFFE'S ATTENTION ESPECIALLY PARAMOUNT'S MADISON SQUARE GARDEN UNIT WHICH OWNS THE MANHATTAN ARENA AS WELL AS THE KNICKS AND THE RANGERS WHEN WORKING AT THE STUDIO MR JAFFE ROUTINELY HAS HAD HIS SECRETARY INTERRUPT MEETINGS TO HAND HIM HOCKEY SCORES SCRIBBLED ON PAPER EXECUTIVES RECALL MR JAFFE A FORMER HIGHSCHOOL HOCKEY PLAYER GLEEFULLY DESCRIBING HOW HE BORROWED THE SKATES OF RANGERS STAR MARK MESSIER TO TAKE A TURN ON THE ICE MR JAFFE MAKES FREQUENT USE OF THE GARDEN'S SUITE 200 A WOODPANELED VIP ROOM DECORATED WITH LEROY NEIMAN PAINTINGS FROM A COURTSIDE SEAT ALONGSIDE SUCH PALS AS ACTOR MICHAEL DOUGLAS MR JAFFE OFTEN CAN BE SEEN WILDLY CHEERING FOR THE KNICKS AND TRADING HIGHFIVES WITH CENTER PATRICK EWING WHOM THE TEAM WITH MR JAFFE'S APPROVAL RESIGNED WITH A 33 MILLION CONTRACT I GO TO GAMES BECAUSE I LOVE IT MR JAFFE SAYS I HAVE BETTER SEATS TODAY MR JAFFE DOESN'T LIMIT HIS INVOLVEMENT TO COURTSIDE THOUGH IN 1991 HE MUSCLED OUT THE PRESIDENT OF THE GARDEN OPERATIONS AND QUICKLY INSTALLED HIMSELF ON THE NATIONAL HOCKEY LEAGUE'S BOARD OF GOVERNORS AS THE RANGERS' REPRESENTATIVE ONCE HE FLEW TO MONTREAL FOR A WEEK TO TRY UNSUCCESSFULLY TO WOO STAR ERIC LINDROSS TO THE RANGERS ONE GARDEN EXECUTIVE SAYS THAT MR JAFFE TREATED THE SPORTS OPERATIONS MORE AS A TOY THAN AS A BUSINESS AND WANTED A CHAMPIONSHIP AT ANY COST MR JAFFE SAYS THAT HE TREATS THE UNIT AS HE TREATS ANY BUSINESS AND DOESN'T SPEND AN INORDINATE AMOUNT OF TIME ON SPORTS HE ALSO NOTES THAT BOTH THE KNICKS AND THE RANGERS ARE CHAMPIONSHIPCALIBER TEAMS MR JAFFE EVEN HAS SOME HOPES THAT THE TEAMS MAY BE HIS SALVATION AS THE MESSY FIGHT FOR PARAMOUNT NEARS ITS CONCLUSION A FEW MONTHS AGO AT A DINNER WITH MR DAVIS AND VIACOM OFFICIALS HE BROACHED THE IDEA OF BUYING THE TEAMS IF THE VIACOMPARAMOUNT DEAL GOES THROUGH MR JAFFE SAYS HE BROUGHT IT UP ONLY BECAUSE HE HAD BEEN APPROACHED ABOUT LEADING AN INVESTOR GROUP TO DO SO STILL HE ADMITS I WOULD WANT TO SEE IF IT'S POSSIBLE HE PAUSES FOR A MOMENT THEN ADDS YES I WOULD BE INTERESTED IN IT AS A BUSINESS PROPOSITION SEE RELATED ARTICLES QVC BOARD TO MEET ON EVE OF DEADLINE FOR PARAMOUNT BID AND IN PARAMOUNT BATTLE THE FOCUS HAS BECOME NOT WHO BUT WHEN WSJ JAN 31 1994 9401310068 940131 TREASURY PLANS TO SELL 165 BILLION IN BILLS TO RAISE 16 BILLION WASHINGTON THE TREASURY PLANS TO RAISE 16 BILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 165 BILLION OF 52WEEK BILLS TO REDEEM 1491 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794Q49 THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED FEB 10 AND WILL MATURE FEB 9 1995 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EASTERN TIME ON THURSDAY AT THE TREASURY DEPARTMENT OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9401310067 940131 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AK STEEL HOLDING CORP A JOINT VENTURE BETWEEN KAWASAKI STEEL CORP AND ARMCO INC AN INITIAL OFFERING OF 15750000 COMMON SHARES AND 275 MILLION OF SENIOR NOTES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 2360000 SHARES VIA CS FIRST BOSTON BEAR STEARNS FINANCE LLC A UNIT OF BEAR STEARNS COS A SHELF OFFERING FOR 20 MILLION SHARES OF GUARANTEED PREFERRED STOCK EXCHANGEABLE FOR DEPOSITORY SHARES EACH REPRESENTING A FRACTIONAL INTEREST IN A SHARE OF A SERIES OF PREFERRED STOCK OF BEAR STEARNS COS THE GUARANTER VIA BEAR STEARNS & CO HASKEL INTERNATIONAL INC AN INITIAL OFFERING OF ONE MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 150000 SHARES VIA SEIDLER COS LEASING SOLUTIONS INC AN OFFERING OF 17 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF AN ADDITIONAL 255000 SHARES VIA NEEDHAM & COAND HAMILTON INVESTMENTS INC MULTIMARKET RADIO INC AN OFFERING OF ONE MILLION UNITS WITH AN OVERALLOTMENT OPTION OF 150000 UNITS EACH UNIT CONSISTING OF ONE CLASS A COMMON SHARE ONE REDEEMABLE CLASS A WARRANT WITH AN OPTION TO PURCHASE A CLASS A COMMON SHARE AND ONE REDEEMABLE CLASS B WARRANT WITH AN OPTION TO PURCHASE AN ADDITIONAL CLASS A COMMON SHARE VASTAR RESOURCES INC A SUBSIDIARY OF ATLANTIC RICHFIELD CO AN INITIAL OFFERING OF UP TO 17250000 COMMON SHARES 9401310066 940131 ABREAST OF THE MARKET RECORD MARGIN BORROWING STIRS SOME DOUBT ON STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDIVIDUAL INVESTORS ARE BORROWING RECORD AMOUNTS OF CASH TO LOAD UP ON STOCKS AND THAT HAS SOME ANALYSTS WORRIED THE BULL MARKET IS GETTING A LITTLE TOO RACY AFTER NEARLY GOING OUT OF STYLE IN 1990 AND 1991 THE PRACTICE OF BUYING STOCK ON MARGIN OR WITH BORROWED MONEY HAS BEEN PICKING UP AT US BROKERAGE FIRMS INDEED ACCORDING TO THE NEW YORK STOCK EXCHANGE MARGIN LOANS AT US BROKERAGE FIRMS HAVE BEEN ON A STEADY CLIMB RISING FROM 44 BILLION AT THE START OF LAST YEAR TO A RECORD 603 BILLION IN DECEMBER LAST YEAR WAS KIND OF A RECORD YEAR FOR US IN TERMS OF BUILDING MARGIN BALANCES SAYS DONNA MORRIS SENIOR VICE PRESIDENT AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUALFUND COMPANY IT'S REALLY A REFLECTION OF LOW INTEREST RATES AND THE FACT THAT INVESTORS ARE TAKING ADVANTAGE OF THE LOW RATES TO BUY ADDITIONAL SECURITIES AND CONSOLIDATE DEBT SO FAR THE STEPPEDUP USE OF MARGIN HAS BEEN HAVING A NOTICEABLY WELCOME EFFECT ON THE PERFORMANCE OF THE STOCK MARKET LAST YEAR THE DOW JONES INDUSTRIAL AVERAGE JUMPED 137 AND ALREADY THIS YEAR THE INDEX OF 30 BLUECHIP STOCKS IS UP 51 AFTER A RECORDSETTING RUN FRIDAY THAT TOOK THE INDUSTRIALS TO 394543 A GAIN ON THE DAY OF 1913 POINTS WHILE SOME ANALYSTS SAY INCREASED MARGIN BUYING WILL CONTINUE TO BE A BULLISH OMEN FOR THE STOCK MARKET OTHERS AREN'T SO SURE THEY RECALL THAT IT WAS ONLY A MONTH AFTER MARGIN LENDING HIT A PEAK THAT STOCK PRICES SKIDDED IN OCTOBER 1987 CULMINATING IN THE WORST ONEDAY DECLINE IN THE HISTORY OF THE STOCK MARKET AND THEY SAY GREATER RELIANCE ON MARGIN IS JUST ANOTHER SIGN THAT INVESTORS ARE WILLING TO TAKE ON MORE RISK WHEN IT COMES TO PLAYING IN THE STOCK MARKET EVENTUALLY THAT EXTRA RISK THEY FEAR WILL LEAD TO WILDLY OVERVALUED STOCK PRICES THE STEPPEDUP USE OF MARGIN SUGGESTS THERE'S A LITTLE MORE SPECULATION IN THE MARKET SAYS LESLIE QUICK III PRESIDENT OF DISCOUNT BROKER QUICK & REILLY GROUP INC IT'S ANOTHER SIGN THAT THINGS ARE GETTING A LITTLE HEATED UP MR QUICK WHOSE FIRM SAW A 33 RISE IN MARGIN LENDING LAST YEAR SAYS THAT WHAT IS SOMEWHAT REASSURING IS THAT MARGIN LENDING HAS BEEN GAINING SLOWLY THE FACT THAT IT IS NOT A SPIKE BUT A STEADY CLIMB IS COMFORTING HE SAYS IT'S A SIGN THAT INVESTORS ARE NOT SUDDENLY GOING WILD MARGIN LOANS ALLOW INVESTORS TO BORROW AMOUNTS OF AS MUCH AS 50 OF THEIR STOCKHOLDINGS ALTHOUGH USUALLY USED TO BUY MORE STOCKS THERE ISN'T ANY RESTRICTION ON HOW THE LOAN CAN BE USED TYPICALLY MARGIN LOANS CARRY RATES THAT ARE LOWER THAN CONSUMERS CAN OBTAIN FROM MOST OTHER SOURCES FIDELITY'S MARGIN RATES FOR INSTANCE RANGE FROM 525 TO 725 DEPENDING ON THE AMOUNT BORROWED CHARLES HUMM SENIOR VICE PRESIDENT AT MERRILL LYNCH CREDIT CORP A SUBSIDIARY OF MERRILL LYNCH SAYS WHILE USING MARGIN TO FINANCE PURCHASES OTHER THAN STOCK IS GAINING MORE ACCEPTANCE THE MAJORITY OF MARGIN BORROWING STILL GOES TO FUND STOCK PURCHASES HOWEVER DESPITE THE SHARP RISE IN MARGIN DEBTS MR HUMM ISN'T CONCERNED THAT INVESTORS ARE GETTING TOO SPECULATIVE I THINK THERE IS A MUCH MORE CONSERVATIVE APPROACH TO MARGIN TODAY HE SAYS HE NOTED THAT IN 1987 THERE WAS MUCH MORE AGGRESSIVE USE OF MARGIN ACCOUNTS ON THE PART OF SOME THAN WE ARE SEEING TODAY OTHER BROKERAGE FIRMS SAY MARGIN BUYING BY THEIR CUSTOMERS WHILE GROWING IS STILL NOWHERE NEAR THE PROPORTION OF TOTAL ASSETS THAT WAS REACHED JUST PRIOR TO THE 1987 CRASH AT CHARLES SCHWAB CORP A BIG DISCOUNT BROKERAGE FIRM MARGIN DEBT TODAY REPRESENTS 27 OF TOTAL EQUITY COMPARED WITH 125 IN AUGUST 1987 MARGIN BUYING IS UP A LOT BUT ASSETS HERE AT SCHWAB ARE ALSO UP A LOT SAYS A SPOKESMAN SOME ANALYSTS LIKE LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME SAY THEY WOULD ONLY GET ANXIOUS IF IT APPEARS THAT INVESTORS ARE USING MARGIN MONEY AS FUNDS OF LAST RESORT IF INDIVIDUALS HAVE MONEY AVAILABLE BUT SAY HECK WITH IT AT 5 I'LL USE MERRILL'S MONEY' THAT DOESN'T BOTHER ME SAYS MR BIRINYI SO FAR HE SAYS THERE'S AMPLE EVIDENCE TO SHOW THAT INVESTORS ARE CASHHEAVY HE NOTES THAT FROM MID1992 TO MID1993 INDIVIDUAL ASSETS IN CHECKING ACCOUNTS WERE UP 22 WHILE FUNDS IN CERTIFICATES OF DEPOSITS WERE ONLY OFF SLIGHTLY SUGGESTING THAT INVESTORS AREN'T FORSAKING THE SAFETY OF THEIR BANKS FOR STOCKS INDEED MR BIRINYI SUGGESTS THAT INVESTORS MAY BE TURNING INCREASINGLY TO MARGIN BORROWING BECAUSE IT AMOUNTS TO A CHEAP AND EASY LOAN HISTORICALLY A COMBINATION OF LOW RATES AND A RISING STOCK MARKET HAS SPURRED INVESTORS TO INCREASE THEIR MARGIN BUYING BUT UNTIL LAST YEAR INVESTORS WERE TAKING A CAUTIOUS APPROACH TO MARGIN BUYING PARTLY BECAUSE MANY STILL HAD VIVID MEMORIES OF BEING BURNED BY MARGIN CALLS IN THE WAKE OF THE OCTOBER 1987 CRASH A MARGIN CALL OCCURS WHEN BROKERAGE FIRMS DEMAND THAT INVESTORS WITH MARGIN LOANS PUT UP MORE CASH TO MAKE UP FOR THE DECLINE IN THE VALUE OF THEIR STOCK PORTFOLIOS WHICH SERVE AS THE LOAN'S COLLATERAL AS LONG AS STOCK PRICES ARE RISING MARGIN CALLS GENERALLY AREN'T A PROBLEM BUT THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER WORRIES ABOUT THE EFFECT MARGIN LENDING WILL HAVE WHEN THE MARKET TURNS SOUTH AS LONG AS STOCK PRICES KEEP RISING MARGIN BUYING IS A VERY BULLISH SIGN BECAUSE IT MEANS THAT MORE MONEY IS FLOWING INTO STOCKS SAYS MR GALLAGHER BUT ONCE THE MARKET STARTS GOING DOWN IT SPEEDS UP THE DECLINE AS ILLIQUID INVESTORS DELUGED WITH MARGIN CALLS START DUMPING STOCK MEANWHILE MR QUICK SAID HE WILL BECOME NERVOUS IF MARGIN LENDING SUDDENLY SPURTS HIGHER OR IF IT IS ACCOMPANIED BY THE GREATER USE OF OTHER SPECULATIVE STRATEGIES IF WE SAW A SPIKE UP IN MARGIN DEBITS I WOULD BE VERY CONCERNED AND I THINK THE BEARS ON WALL STREET WOULD HAVE A FIELD DAY HE SAYS STOCKS HIT HIGHS YET AGAIN AFTER A SURPRISINGLY UPBEAT REPORT ON THE ECONOMY THE DOW JONES INDUSTRIALS SHOT UP 1913 POINTS TO 394543 ITS SECOND STRAIGHT RECORD STANDARD & POOR'S 500STOCK INDEX SURGED 165 POINTS TO 47870 ALSO A HIGH AND THE NASDAQ COMPOSITE INDEX ROCKETED 365 TO 79653 A RECORD ADVANCING ISSUES OUTNUMBERED DECLINING ISSUES 1324 TO 770 VOLUME ON THE NEW YORK STOCK EXCHANGE FELL TO 312636150 SHARES FROM 346292160 SHARES THURSDAY FOR THE WEEK THE DOW JONES INDUSTRIALS AND S&P EACH ROSE 08 AND THE NASDAQ COMPOSITE GAINED 03 STOCKS RALLIED FRIDAY AFTER THE COMMERCE DEPARTMENT REPORTED THAT GROSS DOMESTIC PRODUCT ROSE 59 IN THE FOURTH QUARTER WELL ABOVE THE 52 MANY HAD EXPECTED AND THE STRONGEST SINCE THE 1987 FOURTH QUARTER DESPITE THAT ECONOMIC STRENGTH INFLATION GAUGES IN THE REPORT OFFERED LOWERTHANEXPECTED READINGS ECONOMISTS SAID DAIMLERBENZ AG WAS THE MOSTACTIVE STOCK ON THE BIG BOARD ADDING 1/4 TO 47 AN OFFERING OF 15 MILLION AMERICAN DEPOSITARY SHARES OF DAIMLERBENZ WAS PRICED AT 4675 EACH THURSDAY THE SHARES WERE SOLD BY DEUTSCHE BANK CONTINENTAL BANK SURGED 6 1/8 TO 34 AFTER IT AGREED TO BE ACQUIRED BY BANKAMERICA IN A TRANSACTION VALUED AT 19 BILLION BANKAMERICA EASED 3/8 TO 45 3/8 SHARES OF OTHER BANKS AND BROKERAGE FIRMS ALSO RALLIED CITICORP JUMPED 1 1/4 TO 43 1/8 MERRILL LYNCH 3/4 TO 43 1/8 MORGAN STANLEY 1 3/4 TO 77 AND WELLS FARGO 3 7/8 TO 138 7/8 SCIENTIFICATLANTA TUMBLED 3 7/8 TO 27 7/8 THE COMPANY REPORTED A SECONDQUARTER LOSS OF 12 CENTS A SHARE COMPARED WITH PROFIT OF FOUR CENTS A SHARE A YEAR AGO THE LATEST QUARTER'S RESULTS WERE DEPRESSED BY A CHARGE OF 31 CENTS A SHARE FOR A LEGAL SETTLEMENT AETNA LIFE & CASUALTY ADVANCED 1 3/4 TO 59 7/8 THE COMPANY SAID IT PLANS TO CUT 4000 JOBS AND TAKE A CHARGE TO 1993 EARNINGS OF 103 BILLION MINERALS TECHNOLOGIES SURGED 1 1/2 TO 27 1/2 THE COMPANY EARNED 35 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH 22 CENTS A SHARE A YEAR AGO AND ABOVE ANALYSTS' MEAN ESTIMATE OF 32 CENTS GP FINANCIAL PARENT OF GREEN POINT SAVINGS BANK CLOSED UNCHANGED AT 19 ON NASDAQ VOLUME OF 251 MILLION SHARES A FEDERAL APPEALS COURT CLEARED THE WAY FOR THE COMPANY'S 800 MILLION CONVERSION FROM MUTUAL TO STOCK OWNERSHIP AND THE STOCK BEGAN TRADING SHORTLY AFTER THE RULING THE CONVERSION WAS PRICED AT 15 A SHARE TELEDYNE SHED 2 1/8 TO 23 5/8 THE WALL STREET JOURNAL REPORTED THE COMPANY SUSPENDED ITS CASH DIVIDEND FOR THE FIRST TIME EVER AMID GROWING SIGNS THE AIRCRAFT COMPANY REACHED A TENTATIVE SETTLEMENT WITH THE GOVERNMENT TOTALING WELL OVER 100 MILLION DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9401310065 940131 SMALL STOCK FOCUS INSIDERS PROFIT FROM SELLING SPECTRUM STOCK BY WARREN GETLER AND JOHN J KELLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TOP OFFICIALS OF SPECTRUM INFORMATION TECHNOLOGIES INC THE LITTLE WIRELESS COMPANY UNDER A SECURITIES AND EXCHANGE COMMISSION PROBE SOLD MOST OF THEIR STOCK SHORTLY AFTER HIRING HIGHPROFILE COMPUTER EXECUTIVE JOHN SCULLEY AS CHAIRMAN MR SCULLEY WHO TOOK APPLE COMPUTER INC TO 8 BILLION IN REVENUE IN A FEW SHORT YEARS WAS HIRED BY SPECTRUM TO PROMOTE ITS TECHNOLOGY FOR SENDING DATA OVER WIRELESS NETWORKS AT THE TIME SPECTRUM OFFICIALS BOASTED ABOUT HOW THE COMPANY WOULD EXPLOIT ITS PATENTS THROUGH LICENSING DEALS SUCH AS THOSE IT HAD NEGOTIATED WITH AMERICAN TELEPHONE & TELEGRAPH CO AND ROCKWELL INTERNATIONAL CORP INDEED MR SCULLEY'S TRUMPETED HIRING IN MIDOCTOBER GAVE TOP INSIDERS AT THE NASDAQLISTED COMPANY MUCH TO CHEER ABOUT SPECTRUM WHICH IS BASED IN MANHASSET NY HAS NEVER REPORTED AN ANNUAL PROFIT BUT SPECTRUM'S SHARE PRICE SHOT UP 46 TO 11 1/8 FROM 7 5/8 ON OCT 18 ON NEWS OF MR SCULLEY'S APPOINTMENT MR SCULLEY HIMSELF VOICED CONFIDENCE IN SPECTRUM'S FUTURE AND BACKED HIS OPTIMISM BY HOLDING ON TO OPTIONS THAT COULD HAVE MADE HIM MILLIONS OF DOLLARS WHEN HE AGREED TO JOIN SPECTRUM HE WAS GIVEN A MILLIONDOLLAR SALARY AND OPTIONS TO BUY 18 MILLION SHARES OVER FIVE YEARS AT THE EXERCISE PRICE OF 6125 THREE MILLION OF THOSE OPTIONS BECAME EXERCISABLE AFTER THE FIRST WEEK IN OCTOBER THE WEEK BEFORE MR SCULLEY'S APPOINTMENT WAS ANNOUNCED THAT WOULD HAVE BROUGHT HIM A PROFIT OF AS MUCH AS 15 MILLION BASED ON THE HIGH POINT OF SPECTRUM'S STOCK 11125 ON THE DAY OF THE ANNOUNCEMENT SPECTRUM INSIDERS DIDN'T WAIT HOWEVER A TRIO OF EXECUTIVES INCLUDING PRESIDENT PETER CASERTA WHO CONVINCED MR SCULLEY TO JOIN SPECTRUM EXERCISED OPTIONS AND SOLD THOSE SHARES FOR MILLIONS OF DOLLARS IN NOVEMBER AND EARLY DECEMBER THE OPTIONS WHICH BECAME EXERCISABLE IN LATE AUGUST WOULD HAVE EXPIRED IN 2002 CHIEF FINANCIAL OFFICER SALVATORE MARINO AND VICE PRESIDENT ALBERT PANICO ALSO CASHED IN NONE OF THESE OFFICERS HELD OR CURRENTLY HOLD DIRECT SHARES IN THEIR COMPANY BASED ON SEC FILINGS SPECTRUM OFFICIALS WERE UNAVAILABLE FOR COMMENT FRIDAY ACCORDING TO AN OUTSIDE PUBLICRELATIONS FIRM SOME OF THE INSIDERS' SALES WERE REPORTED BY THE NEW YORK POST LAST WEEK AFTER THE INSIDERS EXERCISED THEIR OPTIONS SPECTRUM SHARES SLID TO AROUND 8 THE STOCK TOOK A FURTHER BATTERING EARLY LAST WEEK AFTER CNBC COMMENTATOR DAN DORFMAN SPECULATED AND THE WALL STREET JOURNAL CONFIRMED THAT SPECTRUM HAS BEEN UNDER AN SEC INVESTIGATION SINCE MAY THE STOCK'S LATEST SLIDE HAS ALL BUT WIPED OUT FOR NOW THE SHORTTERM VALUE OF THE HUGE OPTIONS PACKAGE THAT MR SCULLEY RECEIVED TO JOIN SPECTRUM IN THE FIRST PLACE SPECTRUM SHARES CLOSED FRIDAY AT 6 5/16 UP 1/16 IN NASDAQ STOCK MARKET TRADING MR CASERTA HOWEVER PROFITED HANDSOMELY THE ENTRANCE OF JOHN SCULLEY PROVIDED THE FUEL TO PROPEL THE STOCK WHICH HAD SPENT MOST OF ITS EXISTENCE TRADING BELOW 3 1/2 TO THE 10 RANGE LATE LAST YEAR SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER ACTIVITY THE STOCK'S MOVE PROVIDED THESE INSIDERS WITH A TIMELY OPPORTUNITY TO SELL JUST HOW FAST THEY WERE TO SEIZE IT CAUGHT OUR ATTENTION MR CASERTA SOLD JUST UNDER HALF OF HIS STAKE EXERCISING OPTIONS TO ACQUIRE ONE MILLION SHARES AT 113 APIECE AND THEN SELLING THOSE SHARES IN THE OPEN MARKET AT AN AVERAGE 950 APIECE BETWEEN NOV 15 AND NOV 23 FOR A PRETAX PROFIT OF 84 MILLION MR CASERTA ACCORDING TO THE SEC DATA STILL HOLDS OPTIONS TO ACQUIRE ONE MILLION SHARES AT 113 APIECE AS WELL AS OPTIONS TO BUY 5000 SHARES AT 291 EACH MR PANICO A DIRECTOR AND VICE PRESIDENT OF OPERATIONS DUMPED MORE THAN HALF OF HIS HOLDINGS BETWEEN NOV 22 AND NOV 24 HE EXERCISED 333000 OPTIONS PRICED AT 113 A SHARE AND THEN SOLD THOSE SHARES AT AN AVERAGE 855 FOR A PRETAX PROFIT OF 25 MILLION SEC FILINGS SHOW HIM STILL HOLDING OPTIONS TO ACQUIRE 320000 SHARES PRICED AT 113 AS WELL AS OPTIONS TO ACQUIRE 5000 SHARES AT 375 A SHARE AND MR MARINO THE CHIEF FINANCIAL OFFICER CHOPPED HIS HOLDINGS 63 EXERCISING 300000 OPTIONS AT 113 A SHARE AND SELLING THOSE SHARES AT AN AVERAGE 871 A SHARE BETWEEN NOV 24 AND DEC 1 FOR A PRETAX PROFIT OF 23 MILLION FILINGS SHOW HIM STILL HOLDING OPTIONS TO ACQUIRE 175000 SHARES AT 113 BY SELLING THEIR STOCK THE SPECTRUM EXECUTIVES SAVED THEMSELVES FROM A BIG DROP IN SPECTRUM'S STOCK PRICE WHICH OCCURRED AFTER THE SEC PROBE BECAME KNOWN THE INVESTIGATION CENTERS ON THE WILD RIDE TAKEN BY SPECTRUM'S STOCK LAST SPRING THE SHARES SKYROCKETED TO MORE THAN 13 IN INTRADAY TRADING AFTER THE COMPANY TOUTED A PATENTLICENSING DEAL WITH AT&T AND MR CASERTA SPECTRUM'S PRESIDENT CROWED THAT THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN NEW BUSINESS THE STOCK LATER PLUNGED WHEN AT&T DISAVOWED THE PROJECTION INSIDERS UNDER SEC REGULATIONS ARE PREVENTED FROM TRADING THEIR STOCK IF IN POSSESSION OF MATERIAL NONPUBLIC INFORMATION THE GUIDING PRINCIPLE IS TO DISCLOSE THE INFORMATION TO THE BROAD PUBLIC OR ABSTAIN FROM BUYING OR SELLING COMPANY SHARES ACCORDING TO LEGAL EXPERTS SPECTRUM GENERAL COUNSEL CHRISTOPHER FRANCO LAST WEEK CALLED THE PROBE A CONFIDENTIAL NONPUBLIC INQUIRY AND MAINTAINED THAT IT DIDN'T HAVE TO BE DISCLOSED SEC OFFICIALS DECLINED TO COMMENT SMALLCAP STOCKS ENDED AT RECORD HIGHS FRIDAY AS THE RUSSELL 2000 INDEX ROSE 137 OR 052 TO 26503 ITS SESSION HIGH THE INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES EASILY SURPASSED ITS RECORD OF 26380 SET A WEEK EARLIER INTERESTRATESENSITIVE ISSUES WHICH HAD POWERED THE ADVANCE IN THE PREVIOUS TWO SESSIONS FOLLOWED BOND PRICES HIGHER SOME TECHNOLOGY STOCKS ALSO WERE STRONG GP FINANCIAL CORP NEW YORK CLOSED UNCHANGED AT 19 AFTER A FEDERAL APPEALS COURT FRIDAY CLEARED THE WAY FOR THE COMPANY'S GREEN POINT SAVINGS BANK SUBSIDIARY TO CONVERT FROM MUTUAL TO STOCK OWMNERSHIP COMMUNITY FIRST BANKSHARES INC FARGO ND ROSE 1/2 TO 14 FFBS BANCORP INC COLUMBUS MISS ADDED 1/2 TO 16 3/4 AND PEOPLES BANCORP OF WORCESTER INC WORCESTER MASS INCHED UP 1/4 TO 49 BANCFIRST CORP ROSE 6 3/8 TO 24 3/8 ON THE AMERICAN STOCK EXCHANGE THE DECATUR ALA COMPANY SAID IT ENTERED A DEFINITIVE AGREEMENT TO BE MERGED INTO UNION PLANTERS CORP IN A STOCK SWAP 9401310063 940131 GE UNIT SOROS FORM VENTURE TO BUILD POWER FACILITIES IN EMERGING NATIONS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO'S FINANCE ARM AND INTERNATIONAL FINANCIER GEORGE SOROS ARE JOINTLY FORMING A MULTIBILLIONDOLLAR FUND TO DEVELOP POWER PLANTS IN EMERGING NATIONS HOPING TO PROFIT FROM THE GROWING DEMAND FOR MODERN POWER FACILITIES AROUND THE WORLD GE CAPITAL CORP AND A NEW UNIT SET UP BY MR SOROS'S QUANTUM GROUP ARE EACH INVESTING 200 MILLION IN EQUITY AND EXPECT TO RAISE ANOTHER 2 BILLION TO FINANCE AND BUILD PRIVATELY OWNED POWER FACILITIES IN EMERGING NATIONS SUCH AS CHINA INDIA INDONESIA AND MEXICO INTERNATIONAL FINANCE CORP A UNIT OF THE WORLD BANK HAS SIGNED A LETTER OF INTENT TO INVEST 50 MILLION AND GE EXECUTIVES SAY THE REST WILL COME FROM INTERNATIONAL INVESTORS AND COMPANIES INVOLVED IN THE ENERGY MARKET WHILE AGENCIES SUCH AS THE WORLD BANK HAVE FINANCED THE DEVELOPMENT OF POWER PROJECTS THE FUND CALLED GLOBAL POWER INVESTMENTS COULD BECOME THE LARGEST PRIVATE SOURCE OF CAPITAL FOR THE FASTGROWING WORLDWIDE ENERGY MARKET UNLIKE MOST EQUITY FUNDS THAT TAKE DIRECT EQUITY STAKES IN COMPANIES THIS FUND WILL FINANCE AND BUILD PROJECTS FROM SCRATCH A SPOKESMAN FOR QUANTUM GROUP AN OFFSHORE INVESTMENT VEHICLE SAID THAT THERE ARE ATTRACTIVE RETURNS IN DIRECT EQUITY INVESTMENTS WITH A LONGERTERM INVESTMENT HORIZON GLOBAL POWER COULD ULTIMATELY BE 10 BILLION OR BIGGER IN SIZE AFTER USING THE EQUITY TO BORROW FUNDS FOR CONSTRUCTION PROJECTS WHILE THE FUND WOULD OWN THE PROJECTS IN MANY CASES IT WILL ALSO COOWN PLANTS WITH GOVERNMENTS OR GOVERNMENTOWNED UTILITIES THERE'S A TREMENDOUS NEED FOR POWER INFRASTRUCTURE SAID GARY WENDT PRESIDENT AND CHIEF EXECUTIVE OF GE CAPITAL GLOBAL POWER WOULD INVEST IN PROJECTS IN CHINA INDIA AND MEXICO IN WHICH GE CAPITAL HAS ALREADY BEGUN DISCUSSIONS THE STAMFORD CONN FINANCING GIANT HAS SIGNED A MANAGEMENT CONTRACT WITH THE FUND TO ORIGINATE AND MANAGE THE FACILITIES WHILE THE FUND WILL MAKE THE INVESTMENT DECISIONS GLOBAL POWER WILL ALSO BE BASED IN STAMFORD GE CAPITAL HAS 45 BILLION OF POWER PROJECTS IN THE US AND WANTS TO PARLAY ITS EXPERIENCE WITH ITS PARENT'S STRENGTH IN BUILDING POWER GENERATORS MR WENDT SAID WE EXPECT TO BE WORKING VERY CLOSELY WITH GE TO SOURCE AND DEVELOP PROJECTS NOW WE'RE GOING ABROAD HE SAID OF GE CAPITAL AMID A MATURE MARKET IN THE US DEMAND FOR ELECTRICITY IS GROWING FASTER IN EAST ASIA THAN ANYWHERE ELSE IN THE WORLD CHINA SPENDS ABOUT 10 BILLION TO 14 BILLION A YEAR ON ELECTRICPOWER PROJECTS AND CAPACITY IS FORECAST TO NEARLY DOUBLE BY THE TURN OF THE CENTURY ANALYSTS SAY COALRELATED PROGRAMS ARE IMPORTANT IN THE EAST ASIAN REGION BECAUSE OF THE HUGE RESERVES THERE CHINA USES ABOUT 11 BILLION TONS OF COAL ANNUALLY MORE THAN ANY OTHER NATION AND 40 OF ITS NEW ENERGY SPENDING IS EXPECTED TO GO INTO COALFIRED POWER GLOBALLY THERE IS AN ENORMOUS LATENT DEMAND FOR INCREASED POWER PRODUCTION AND THE FUEL OF CHOICE IS EXPECTED TO BE COAL SAID WILLIAM OWENS CHAIRMAN AND CHIEF EXECUTIVE OF SGI INTERNATIONAL A LA JOLLA CALIF COMPANY THAT CLEANS COAL FOR COMMERCIAL USE THE FUND WILL BUILD VARIOUS TYPES OF POWER FACILITIES INCLUDING GAS OIL COAL AND HYDROELECTRIC PLANTS A TYPICAL 200MEGAWATT PROJECT COULD COST UPWARD OF 200 MILLION LOCAL ASIAN COMPANIES HAVE ALREADY SEIZED ON THE OPPORTUNITY ONE COMPETITOR OF THE NEW FUND WILL BE HOPEWELL HOLDINGS A HONG KONG INFRASTRUCTURE COMPANY THAT HAS A BIG PRESENCE IN CHINA THE COMPANY IS SETTING UP A SEPARATE COMPANY TO BUILD POWER STATIONS IN CHINA THE PHILIPPINES AND ELSEWHERE IN ASIA AS HOPEWELL SHOWED THE BUSINESS CAN BE QUITE LUCRATIVE IN 1987 HOPEWELL COMPLETED THE 700MEGAWATT SHAJIAO B POWER STATION ON CHINA'S PEARL RIVER THE OWNERSHIP WILL ULTIMATELY BE TRANSFERRED TO CHINA BUT THE BUILDOPERATETRANSFER AGREEMENT GIVES THE COMPANY A RETURN OF ABOUT 18 ON ITS INVESTMENT THE 200 MILLION FROM MR SOROS WILL COME FROM A NEW FUND SET UP BY QUANTUM TO MAKE LONGERTERM EQUITY INVESTMENTS INVESTORS IN FOUR OF MR SOROS'S EXISTING FUNDS WILL BE GIVEN THE OPPORTUNITY TO INVEST IN THE NEW FUND CALLED QUANTUM INDUSTRIAL HOLDINGS THE SPOKESMAN SAID MR SOROS'S FUNDS HAVE BEGUN TO MAKE OTHER INVESTMENTS IN DEVELOPING COUNTRIES INCLUDING A REALESTATE VENTURE IN MEXICO WHILE MR SOROS IS A MAJOR CONTRIBUTOR TO CHARITABLE ORGANIZATIONS IN EMERGING COUNTRIES IN EASTERN EUROPE WE AND MR SOROS ARE IN THIS ACTIVITY TO MAKE PROFITS SAID MR WENDT 9401310062 940131 GOVERNORS' DILEMMA BUDGETS OUT OF CONTROL BY STEPHEN MOORE AMERICA'S GOVERNORS ARE NOW IN WASHINGTON ATTENDING THEIR ANNUAL MEETING IF HISTORY IS ANY GUIDE THEY WILL BE SEEKING MORE FEDERAL DOLLARS TO HELP BALANCE THEIR BUDGETS WHILE BLAMING THEIR FISCAL CRISES ON UNCLE SAM WHILE SOME OF THE BLAME RESTS WITH CONGRESS'S MANDATES THE TRUTH IS THAT STATES HAVE FACED FOUR CONSECUTIVE YEARS OF IMBALANCED BUDGETS PRIMARILY BECAUSE OF THEIR OWN SPENDING AND TAX POLICIES IN THE 1980S STATE BUDGETS MORE THAN DOUBLED SETTING THE STAGE FOR AN ERA OF FISCAL DETERIORATION IN THE 1990S MOST GOVERNORS TRIED TO CLOSE THOSE DEFICITS BY RAISING TAXES STATE LAWMAKERS HAVE JUSTIFIED THESE TAX HIKES BY INSISTING THAT NEW REVENUES WERE COUPLED WITH DEEP SPENDING CUTS NOTHING COULD BE FURTHER FROM THE TRUTH NATIONWIDE STATE SPENDING GREW BY 10 IN 1991 AND AN ENORMOUS 12 IN 1992 NOT COINCIDENTALLY THE GOVERNORS WHO RAMMED THROUGH LARGE TAX INCREASES IN THE EARLY 1990S HAVE ALSO APPROVED THE FASTEST GROWTH IN GOVERNMENT EXPENDITURES FORTUNATELY NOT ALL GOVERNORS HAVE PURSUED THE TAXHIKE ROUTE THE ACCOMPANYING TABLE SHOWS THE RESULTS OF A JUSTRELEASED FISCAL POLICY REPORT CARD PREPARED BY MY COLLEAGUE DEAN STANSEL AND MYSELF IT RELIES ON 14 INDICATORS OF FISCAL PERFORMANCE AS MEASURED BY THE CENSUS BUREAU AND THE NONPARTISAN NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS THESE INCLUDE SUCH VARIABLES AS PERCAPITA SPENDING AND THE CHANGE IN TAX REVENUES AND RATES THE DIFFERENT STRATEGIES ADOPTED BY GOVERNORS IN THE EARLY 1990S HAVE TRANSLATED INTO DRAMATIC CHANGES IN STATE TAX BURDENS AND SPENDING HERE IS A SUMMARY OF THE PERFORMANCE OF SOME PROMINENT GOVERNORS PETE WILSON OF CALIFORNIA RAMMED THROUGH THE LEGISLATURE A GIGANTIC 7 BILLION TAX INCREASE IN 1991 THE LARGEST STATE TAX HIKE IN AMERICAN HISTORY IN THREE YEARS MR WILSON HAS RAISED VIRTUALLY EVERY STATE TAX IMAGINABLE THE INCOME TAX THE SALES TAX THE GASOLINE TAX THE CIGARETTE TAX AND A HOST OF OTHER FEES THE TAX INCREASES HAVE SO DEVASTATED THE ECONOMY THAT ONLY A FRACTION OF THE PROJECTED REVENUES HAVE BEEN DELIVERED AND THUS BIG BUDGET DEFICITS REMAIN MARIO CUOMO HAS GOVERNED AS IF HE NEVER MET A SPENDING PROGRAM HE DIDN'T LIKE IN 10 YEARS MR CUOMO TOOK THE NEW YORK BUDGET FROM LESS THAN 50 BILLION TO 75 BILLION NEW YORK SPENDS 6000 MORE PER FAMILY TODAY THAN IT DID WHEN MR CUOMO WAS FIRST INAUGURATED IN 1983 NEW YORK IS NOW SADDLED WITH WHAT THE NEW YORK TIMES CALLS A ROTTEN CREDIT RATING THE WORST AMONG THE 50 STATES BUT MR CUOMO'S TAX POLICIES HAVE BEEN SUPPLYSIDE HE CHOPPED THE TOP TAX RATE IN THE STATE TO 8 FROM 14 A POLICY THAT HELPED TO PRODUCE A REVENUE WINDFALL UNFORTUNATELY MR CUOMO EAGERLY SPENT IT ANN RICHARDS BOASTS OF BEING A FISCALLY MODERATE DEMOCRAT BUT THE EVIDENCE SUGGESTS OTHERWISE IN HER FIRST YEAR THE TEXAS BUDGET GREW BY AN ENORMOUS 115 IN REAL TERMS OR MORE THAN 650 PER FAMILY THAT SPENDING BURST OUTPACED ALL BUT A SMALL HANDFUL OF STATES TEXAS HAS NO CORPORATE OR PERSONAL INCOME TAX BUT GOV RICHARDS HAS WASTED NO TIME RESORTING TO AN ASSORTMENT OF OTHER BUSINESS TAXES AND GAS TAX HIKES TO BRING MORE REVENUE INTO AUSTIN JOHN ENGLER HAS HELPED CATAPULT MICHIGAN ONCE DERIDED AS THE RUSTBELT STATE INTO ONE OF THE FASTEST GROWING STATES IN THE UNION LAST YEAR MICHIGAN'S UNEMPLOYMENT RATE FELL BELOW THE NATIONAL AVERAGE FOR THE FIRST TIME IN 25 YEARS MR ENGLER HAS CUT THE STATE WORK FORCE BY 4000 WORKERS ELIMINATED AN ENTIRE DEPARTMENT AND HALVED SPENDING ON THE ARTS COMMERCE LABOR AND CIVIL RIGHTS HE ABOLISHED THE STATE'S GENERAL ASSISTANCE WELFARE PROGRAM FOR SOME 80000 EMPLOYABLE ADULTS THUS DISPROVING THE IRON RULE THAT ENTITLEMENTS CANNOT BE ELIMINATED LOWELL WEICKER OF CONNECTICUT HAS WON THE MANTLE AS AMERICA'S CHAMPION TAXANDSPEND GOVERNOR EDGING OUT NEW JERSEY'S JIM FLORIO FOR THIS IGNOMINIOUS DISTINCTION FOLLOWING A DECADE WHEN CONNECTICUT'S BUDGET INCREASED BY 150 MR WEICKER'S SOLUTION TO THE RESULTING RED INK WAS TO ENACT A MASSIVE TAX HIKE IN 1991 MR WEICKER WON NARROW SUPPORT IN THE LEGISLATURE FOR THE STATE'S FIRST PERSONAL INCOME TAX IN EXCHANGE FOR A DECLINE IN THE STATE SALES TAX FOR THE AVERAGE CONNECTICUT TAXPAYER THIS WAS A ROTTEN DEAL THE REAL TAX BURDEN HAS CLIMBED BY 2000 PER FAMILY OVER ROUGHLY THIS SAME PERIOD 198992 REAL INCOME PER FAMILY IN CONNECTICUT HAS DROPPED BY SOME 2000 AND JOBS HAVE BEEN DISAPPEARING KIRK FORDICE IS MISSISSIPPI'S FIRST REPUBLICAN GOVERNOR IN 115 YEARS A SELFMADE BUSINESSMAN MR FORDICE HAS PURSUED AN UNAPOLOGETIC PROBUSINESS PROJOBS AGENDA HE HAS REFUSED TO CONSIDER ANY TAX HIKES AS PROMISED INSTEAD TRIMMING THE BUDGET BY NEARLY 5 OVER HIS FIRST TWO YEARS IN OFFICE BECAUSE OF MR FORDICE'S TIGHTFISTEDNESS THE BUDGET IS NOW RUNNING A SURPLUS AND HE WANTS TO ERASE IT BY CUTTING INCOME TAXES MIKE LOWRY OF WASHINGTON HAS SET OUT TO AS THE ALMANAC OF AMERICAN POLITICS PUTS IT MAKE WASHINGTON A LABORATORY FOR LIBERAL REFORM MR LOWRY PLEDGED DURING THE 1992 CAMPAIGN TO RAISE TAXES ONLY AS A LAST RESORT THEN HE RAISED TAXES BY 1 BILLION AS A FIRST RESORT THE MONEY WILL BE USED FOR A UNIVERSAL HEALTH CARE PROGRAM WHICH REQUIRES BUSINESSES TO PROVIDE INSURANCE FOR ALL EMPLOYEES THE TAXPAYER COST TO COVER THE UNINSURED IS EXPECTED TO TOP 2 BILLION BY 2000 SO FAR MR LOWRY LOOKS TO BE THE JIM FLORIO OF THE WEST THE MAJOR FISCAL POLICY LESSON FROM THE STATES IN THE 1990S SO FAR HAS BEEN THAT THOSE GOVERNORS WHO TRIED TO COMBAT BUDGET DEFICITS WITH MAJOR TAX INCREASES HARMED THEIR STATES' ECONOMIES WHILE HAVING VERY LITTLE SUCCESS SLOWING THE TIDE OF RED INK CALIFORNIA CONNECTICUT NEW JERSEY RHODE ISLAND AND PENNSYLVANIA ARE ALL UNHAPPY TESTAMENTS TO THE ECONOMIC CONSEQUENCES OF RAISING STATE TAXES MEANWHILE THE BUDGETCUTTING FISCAL STRATEGY EMPLOYED BY GOVS ENGLER FORDICE MERRILL WELD AND WILDER HAS LED TO BALANCED BUDGETS AND IMPROVED ECONOMIC CONDITIONS IN FACT MOST OF THESE GOVERNORS HAVE NOW PROPOSED TAX CUTS TO FURTHER ENCOURAGE BUSINESS AND JOB FORMATION THERE IS A LESSON HERE NOT JUST FOR STATE POLICY MAKERS BUT FOR CONGRESS AND THE WHITE HOUSE AS WELL MR MOORE IS DIRECTOR OF FISCAL POLICY STUDIES AT THE CATO INSTITUTE 9401310061 940131 NEW PROFIT CENTER CORPORATE BANKING GIVEN UP FOR DEAD IS REINVENTING ITSELF BANKAMERICA IN PLAN TO BUY CONTINENTAL WOULD GAIN BY OFFERING MORE SERVICES LASTING COMPUTER MARRIAGES BY RALPH T KING JR AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL BANKAMERICA CORP'S PROPOSED 19 BILLION ACQUISITION OF CONTINENTAL BANK CORP IS YET ANOTHER SIGN THAT CORPORATE BANKING HAS BEEN RESURRECTED IN A NEW TECHNOLOGICAL FORM A HANDFUL OF MAJOR BANKS ARE NO LONGER JUST LENDING MONEY TO COMPANIES BUT PROVIDING MYRIAD COMPUTERBASED SERVICES THAT MATE THEM TO THEIR CUSTOMERS IN LUCRATIVE LONGTERM MARRIAGES THESE ELECTRONIC SERVICES HELP COMPANIES MANAGE RISK DO BUSINESS OVERSEAS AND SLASH PAYROLLS BY OUTSOURCING MANY FINANCIAL FUNCTIONS TO THEIR BANKERS DOZENS OF HIGHLY TECHNICAL PRODUCTS AND SERVICES FROM DERIVATIVES THAT GUARD AGAINST INTERESTRATE SWINGS TO AUTOMATED LOCKBOX SYSTEMS THAT ENSURE SPEEDY DEPOSIT OF CHECKS ARE THE HOTTEST TOOLS OF THE BANKER'S TRADE WHAT'S HAPPENED IS THAT WE'VE DEVELOPED A WHOLE SERIES OF PRODUCTS THAT EMPLOY ADVANCED TECHNOLOGY OBSERVES LEWIS COLEMAN BANKAMERICA'S CHIEF FINANCIAL OFFICER WHEN YOU GET WIRED INTO A CUSTOMER'S INFORMATION SYSTEM AND THEY GET WIRED INTO YOU IT BECOMES MECHANICALLY DIFFICULT TO LOSE THAT BUSINESS EXPANDING A NEW KIND OF CORPORATE BANKING RELATIONSHIP IS THE DRIVING FORCE BEHIND BANKAMERICA'S 19 BILLION BID FOR CONTINENTAL THE CHICAGO BANK DOESN'T HAVE ANY RETAIL BRANCHES IT HAS 2000 CORPORATE CUSTOMERS INCLUDING SUCH PUBLICLY HELD COMPANIES AS CHRYSLER CORP DEERE & CO AND ALLSTATE CORP MAJOR PRIVATE CONCERNS AND MANY PROSPEROUS SMALLER FIRMS BANKAMERICA BASED IN SAN FRANCISCO WANTS TO SELL THEM SERVICES LENDING MONEY IS JUST AN ENTREE THE SAME STRATEGY PREVAILS AT THE OTHER MAJOR BANKS THAT HAVE MASTERED THE SWITCH TO TECHNOLOGYBASED SERVICES SUCH AS NEW YORK'S JP MORGAN & CO BANKERS TRUST NEW YORK CORP CITICORP AND CHEMICAL BANKING CORP AND MORE RECENTLY NATIONSBANK CORP AND FIRST UNION CORP WHICH ARE BOTH IN CHARLOTTE NC AT THESE BANKS PROFITS FROM NONLENDING SOURCES IS SURGING RISING TO 46 OF CHEMICAL'S CORPORATE REVENUE FOR THE FIRST NINE MONTHS OF 1993 COMPARED WITH 40 IN 1992 FOR INSTANCE AT CONTINENTAL ONLY ONETHIRD OF ROUGHLY 1 BILLION IN ANNUAL REVENUE CAME FROM LENDING LAST YEAR DOWN CONSIDERABLY FROM 1992 PEOPLE HAVE BEEN PREDICTING THE DEMISE OF CORPORATE BANKING FOR 26 YEARS SAID WILLIAM VANDIVER PRESIDENT OF THE NATIONSBANK INSTITUTIONAL BANK UNIT WHO HAS BEEN IN BANKING FOR 26 YEARS AND IN FACT CORPORATE LENDING AS A PROFIT CENTER IS DYING BUT THE DOOMSAYERS MISSED THE FACT THAT THE CORPORATE BUYER SPENDS A HECK OF A LOT OF MONEY ON FINANCIAL SERVICES THERE'S AN AWFUL LOT OF MONEY TO BE MADE BANKAMERICA AND CONTINENTAL KNOW THE POTENTIAL VALUE OF CORPORATE BANKING AS WELL AS ANYONE PROFITS FROM THAT SOURCE HAVE SOARED AT BANKAMERICA TO 50 OF NET INCOME LAST YEAR FROM 25 FIVE YEARS AGO THE RETURN ON ASSETS IS NOW HIGHER FROM CORPORATE BANKING THAN FROM RETAIL BANKING CONTINENTAL CAME BACK FROM THE DEAD BY FOCUSING EXCLUSIVELY ON THE COMMERCIAL SIDE GENERATING STRONG PROFITS IN THE LAST TWO YEARS AFTER A LONG ROCKY REBOUND FROM A FEDERALLY FINANCED BAILOUT IN THE MID1980S ITS RETURN ON ASSETS WAS 12 LAST YEAR SURPASSING THE 1 LEVEL CONSIDERED HEALTHY IN BANKING AND EXCEEDING BANKAMERICA'S 105 WHATEVER THE MYTHOLOGY ABOUT HOW BAD IT IS CORPORATE BANKING CAN BE VERY PROFITABLE IF YOU'RE FOCUSED AND EFFICIENT SAYS THOMAS C THEOBALD CONTINENTAL'S 57YEAROLD CHAIRMAN WHO WILL STEP ASIDE AFTER THE DEAL IS COMPLETED THAT IS EXPECTED IN THE THIRD QUARTER PENDING REGULATORY AND SHAREHOLDER APPROVAL AS WELL AS A DUEDILIGENCE REVIEW BY BANKAMERICA BANKAMERICA HAS ASSETS OF NEARLY 187 BILLION CONTINENTAL'S ASSETS TOTAL NEARLY 23 BILLION WHAT MAKES THESE NEW BANKERS EFFICIENT IS A MASTERY OF TECHNOLOGY BANKAMERICA SPENT HUNDREDS OF MILLIONS OF DOLLARS ON AN INTERNATIONAL COMPUTER NETWORK IN THE MID1980S NOW ONLY IT AND A HANDFUL OF BANKS INCLUDING CITICORP AND CHASE MANHATTAN CORP CAN OFFER US COMPANIES A HOST OF ESSENTIAL SERVICES ANYWHERE IN THE WORLD RANGING FROM FOREIGNEXCHANGE TRADING TO DEPOSIT AND CHECKCLEARING FUNCTIONS BANKAMERICA HAS AN EDGE OVER OTHER RIVALS DOMESTICALLY BECAUSE IT DOMINATES THE HIGHLY AUTOMATED BUSINESS OF CHECK PROCESSING NEARLY ONE OUT OF EVERY EIGHT CHECKS WRITTEN IN THE US ROLLS THROUGH ITS MASSIVE PROCESSING CENTERS FOR INTERNATIONAL BUSINESS MACHINES CORP WHICH RECENTLY RAISED 10 BILLION OF CREDIT AT RAZORTHIN INTEREST RATES THROUGH CHEMICAL BANK RELATIONSHIPS ARE EVERYTHING SAYS FREDERICK W ZUCKERMAN IBM'S TREASURER CORPORATE BANKING IN TERMS OF LENDING MONEY ISN'T ALL THAT ATTRACTIVE MR ZUCKERMAN CONCEDES BUT FOR BANKS TO GET IBM'S MORE PROFITABLE FEEBASED BUSINESS THE COMPANY WANTS THEM TO COMMIT FUNDS TO A CREDIT AGREEMENT IT BUYS A TICKET OF ADMISSION TO THE GAME SAYS MR ZUCKERMAN IT WAS PROBABLY A COSTLY TICKET IBM RECEIVED INTEREST RATES AT LESS THAN ONETHIRD OF A PERCENTAGE POINT OVER SHORTTERM INTEREST RATES AND OBTAINED A FIVEYEAR CREDIT LINE LONGER THAN WHAT MOST BANKS PREFER BANKS WERE NICE ENOUGH TO DO THAT HE SAYS BUT MR ZUCKERMAN NOTES THAT THERE ARE ALL SORTS OF FEEBASED TRANSACTIONS DONE WITH BANKS AROUND THE WORLD IBM FOR EXAMPLE TURNS TO ITS BANKS FOR HUMDRUM BUSINESSES SUCH AS REGISTRAR AND TRANSFER AGENT FOR ITS STOCK AND TRUSTEE FOR ITS PENSION FUND IN ADDITION THE COMPUTER MAKER USES BANKS FOR FOREIGN EXCHANGE AND DERIVATIVE INSTRUMENTS THAT HELP MANAGE THE COMPANY'S RISK FROM FLUCTUATING CURRENCIES 60 OF ITS REVENUE COMES FROM OUTSIDE THE US WHILE DECLINING COMMENT ON THE COST TO IBM MR ZUCKERMAN SAYS THAT MARGINS IN THOSE BUSINESSES ARE LESS TIGHT FOR BIG BANKS HEWLETTPACKARD CO BECAME A BANKAMERICA CUSTOMER THROUGH THE BANK'S 1991 MERGER WITH SECURITY PACIFIC CORP IN ADDITION TO CREDIT LINES AND FOREIGNEXCHANGE DATA THE BANK SUPPLIES HP WITH A NATIONWIDE CASHMANAGEMENT SERVICE THESE SERVICES ARE NECESSARY TO RUN A BUSINESS LIKE OURS WE HAVE TO HAVE THEM SAYS STEVE PAVLOVICH A TREASURYDEPARTMENT MANAGER AT HP BEYOND PROVIDING THAT BASIC SERVICE BANKAMERICA HELPED HP IMPROVE PRODUCTIVITY WITHIN ITS TREASURY FUNCTION FIVE YEARS AGO HP HAD TO USE EMPLOYEES IN SEVERAL PARTS OF THE COUNTRY TO COORDINATE CASH COLLECTIONS TODAY BECAUSE OF NEW BANK TECHNOLOGY IT CAN COORDINATE THE FUNCTION FROM JUST ONE LOCATION AND WITH FEWER EMPLOYEES BANKS ARE A TREMENDOUS SOURCE OF CREATIVITY OF FINANCIAL RESEARCH AND DEVELOPMENT IN THAT SENSE WE ARE MORE DEPENDENT ON THEM MR PAVLOVICH SAYS NONETHELESS SOME INDUSTRY ANALYSTS AREN'T CONVINCED THAT CORPORATE BANKING IS THE GOLD MINE BANKAMERICA THINKS IT IS UNTIL THE PAST FEW YEARS LOSSES ON CORPORATE LENDING FREQUENTLY WIPED OUT MOST IF NOT ALL OF THE INDUSTRY'S PROFITS FROM FEEBASED PRODUCTS AND SERVICES LENDING IS TEMPORARILY PROFITABLE NOW BECAUSE OF LOW INTEREST RATES THEY SAY BUT WHEN RATES RISE BANKS MAY FIND THE RELATIONSHIP GAME ISN'T AS ATTRACTIVE FOR THEM AS FOR THEIR CUSTOMERS SAYS ONE ANALYST CORPORATE TREASURERS ARE FICKLE FOREIGN COMPETITORS WITH FEWER REGULATORY RESTRICTIONS IN THEIR HOME MARKETS ARE MOUNTING A FORMIDABLE CHALLENGE WITH THEIR OWN ELECTRONIC NETWORKS CREDIT LYONNAIS SA DEUTSCHE BANK AG SWISS BANK CORP AND CS HOLDING'S CREDIT SUISSE HAVE ALL TARGETED WHOLESALE BANKING IN THIS COUNTRY BRINGING AN INTERNATIONAL EXPERTISE AND CANADIAN BANKS ARE BIG IN THE CABLETELEVISION MARKET AND IN LENDING TO ENERGY PROJECTS VIRTUALLY ALL HAVE BOTH DEBT AND EQUITY UNDERWRITING POWERS MOREOVER CORPORATE BANKS SUCH AS JP MORGAN AND BANKERS TRUST DON'T HAVE THE DISTRACTIONS OF BIG RETAIL OPERATIONS LIKE BANKAMERICA AND NATIONSBANK I'VE NEVER SEEN A COMPANY YET THAT IS A GREAT CORPORATE BANK AND A GREAT RETAIL BANK AT THE SAME TIME SAYS THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN & JENRETTE BUT RICHARD ROSENBERG 63 BANKAMERICA'S CHAIRMAN AND MR THEOBALD OF CONTINENTAL SEE NATIONWIDE OR GLOBAL ELECTRONIC SERVICES AS INCREASINGLY ATTRACTIVE THEY SAY BANKS HAVE DEVELOPED MANY MORE PRODUCTS THAT NOW CHALLENGE THE TURF OF SECURITIES FIRMS THAT THE HIGH COST OF BUILDING COMPUTER NETWORKS AND SOFTWARE PRODUCTS DETERS POTENTIAL NEW COMPETITION AND THAT COMPETITION ACTUALLY HAS DECREASED MANY SMALLER US BANKS HAVE ABANDONED BUSINESS CUSTOMERS IN THEIR PURSUIT OF RETAIL PROFITS ONLY TO FIND NONBANK MORTGAGE LENDERS AND CREDITCARD ISSUERS DRIVING DOWN MARGINS IN THAT SEGMENT JAPANESE BANKS FORMERLY MAJOR PLAYERS AND OTHER FOREIGN BANKS ARE IN WHOLESALE RETREAT MR THEOBALD A FORMER CITICORP EXECUTIVE WHO JOINED CONTINENTAL IN 1987 SAYS THE JAPANESE MARKET SHARE IN BUSINESS LOANS HAS FALLEN TO 27 FROM 40 SEVERAL YEARS AGO THAT'S NOT RECOGNIZED IN THE MARKETPLACE HE SAYS IT'S ALMOST THE EQUIVALENT OF THE JAPANESE AUTO MAKERS CUTTING THEIR US SALES IN HALF MR ROSENBERG SAYS THE DECISION TO EXPAND BANKAMERICA'S CORPORATE BUSINESS IN THE MIDWEST WAS MADE BY THE BOARD SOME TIME AGO IT IS BELIEVED THAT BANKAMERICA INITIALLY MADE OVERTURES TO CONTINENTAL'S CHICAGO RIVAL FIRST CHICAGO CORP BUT WAS REBUFFED RICHARD THOMAS FIRST CHICAGO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ONLY SAY THAT GENERALLY EVERYBODY'S TALKING TO EVERYBODY MR ROSENBERG THEN ARRANGED TO MEET WITH MR THEOBALD IN CHICAGO LAST AUGUST IN EARLY DECEMBER AFTER MORE MEETINGS WITH THE CONTINENTAL CHIEF MR ROSENBERG ORDERED HIS BANKAMERICA TEAM CODENAMED BEAR TO NEGOTIATE IN EARNEST WITH CONTINENTAL WHICH WAS GIVEN THE NAME CONDOR A DEAL WAS STRUCK SHORTLY AFTER MIDNIGHT THURSDAY UNDER THE TERMS CONTINENTAL SHAREHOLDERS WILL RECEIVE 939 MILLION OF CASH AND 213 MILLION SHARES OF BANKAMERICA STOCK EQUAL TO 3750 A SHARE THE PRICE IS A PREMIUM OF 35 OVER CONTINENTAL'S TRADING LEVEL BEFORE THE DEAL WAS ANNOUNCED IN NEW YORK STOCK EXCHANGE TRADING FRIDAY CONTINENTAL'S STOCK JUMPED 6125 A SHARE TO 34 MR THEOBALD PUT CONTINENTAL UP FOR SALE BECAUSE IT NEEDED MORE FINANCIAL MUSCLE AND MORE OF A NATIONWIDE SCALE TO INCREASE ITS BUSINESS WITH CORPORATE CUSTOMERS AFTER ITS TROUBLES 10 YEARS AGO CONTINENTAL SHRANK FROM BEING THE SIXTH LARGEST US BANK TO 33RD MR THEOBALD HIMSELF STANDS TO MAKE AN ESTIMATED 20 MILLION FROM STOCK HE PURCHASED OVER THE YEARS AS WELL AS FROM OPTIONS GRANTED BY THE COMPANY AND CONTINENTAL'S MANAGEMENT AS A WHOLE HOLDS OPTIONS VALUED AT 75 MILLION A BANKAMERICA OFFICER SAID THE FEDERAL DEPOSIT INSURANCE CORP ESTIMATES THE GOVERNMENT'S TOTAL LOSS ON THE 45 BILLION BAILOUT AT 103 BILLION FROM BANKAMERICA'S PERSPECTIVE THERE WERE SOME CLEVER ANGLES TO THE DEAL IN A WAY THE PURCHASE IS LIKE A LEVERAGED BUYOUT BECAUSE BANKAMERICA PLANS TO LIQUIDATE CONTINENTAL'S SECURITIES HOLDINGS CUTTING ITS SIZE NEARLY IN HALF AS A RESULT CONTINENTAL WILL BE OVERCAPITALIZED AND BANKAMERICA CAN IN EFFECT USE THAT EXCESS CAPITAL TO FINANCE MUCH OF THE PURCHASE BY ELIMINATING AS MANY AS 800 REDUNDANT POSITIONS AND OVERLAPPING OFFICES BANKAMERICA CAN ALSO CUT OPERATING EXPENSES AT CONTINENTAL BY ABOUT 90 MILLION A YEAR IT CAN ALSO USE ITS LOWCOST RETAIL DEPOSITS AND SUPERIOR CREDIT RATING TO REDUCE CONTINENTAL'S BORROWING COSTS BY AT LEAST 50 MILLION A YEAR BANKAMERICA WILL SHIFT ITS US CORPORATEBANKING GROUP TO CHICAGO IT NAMED TWO CONTINENTAL VICE CHAIRMEN MICHAEL MURRAY AND WILLIAM GOODYEAR TO HEAD THE OPERATION BANKAMERICA ALSO PLANS TO BUY BACK 500 MILLION OF ITS OWN SHARES WHICH WILL PREVENT THE ACQUISITION FROM DILUTING EARNINGS PER SHARE IN FACT CONTINENTAL'S OPERATIONS WILL PRODUCE A PROFIT IN THE FIRST YEAR AND ADD MODESTLY TO BANKAMERICA'S PERSHARE EARNINGS AFTER THAT BUT BANKAMERICA DIDN'T BUY CONTINENTAL FOR ITS INHERENT PROFITABILITY BUT FOR BROAD STRATEGIC PURPOSES IT WANTED CONTINENTAL'S LIST OF MOSTLY BLUECHIP MIDWEST CORPORATE CUSTOMERS AND TO DRIVE FUTURE GROWTH BY PLUGGING THEM INTO BANKAMERICA'S NETWORK OF ELECTRONIC SERVICES IT FOUND IN ITS ACQUISITION OF SECURITY PACIFIC THAT SURPRISINGLY FEW OF THESE CUSTOMERS WILL LEAVE ACCORDING TO A SURVEY BY GOLDMAN SACHS & CO CONTINENTAL HAS A SIGNIFICANT BANKING RELATIONSHIP WITH 16 OF THE 1000 LARGEST FIRMS IN THE COUNTRY ADDED TO BANKAMERICA'S 29 SHARE THE COMBINED OPERATION PROBABLY WILL HAVE THE MOST CORPORATE CUSTOMERS IN THE US VAULTING PAST CHEMICAL WITH ITS ONETHIRD SHARE GETTING SUCH CUSTOMERS IS A TOUGH FIRST STEP IN CORPORATE BANKING ONCE THEY ARE IN THE FOLD BANKAMERICA OFFERS THEM AS MANY AS 70 DIFFERENT PRODUCTS AND SERVICES ONCE YOU GET PEOPLE HOOKED WITH CREDIT YOU HAVE TO SELL THEM OTHER SERVICES SAYS DAVID COULTER A BANKAMERICA VICE CHAIRMAN WE HAVE VERY FEW STANDALONE CREDIT CUSTOMERS IF WE HAD THEM WE'D HAVE TO HAVE A CONVERSATION TO GET THEM TO DO MORE WITH US OR WE'D PART WAYS FOR SEVERAL YEARS THE STRATEGY HAS BEEN PAYING OFF BIG AND AS BANKAMERICA SPREADS MORE CUSTOMERS ACROSS ITS INVESTMENT IN TECHNOLOGY IT COULD BECOME EVEN MORE LUCRATIVE ITS PRETAX OPERATING MARGINS FOR INVESTMENTBANKING DEALS SUCH AS THE UNDERWRITING OF DEBT CAN RUN AS HIGH AS 70 FOR CAPITALMARKETS OPERATIONS SUCH AS FOREIGNEXCHANGE TRADING 50 AND FOR CASH MANAGEMENT SERVICES 30 THE REVENUE PRODUCED BY ITS TRADING OPERATIONS ALONE HAS JUMPED FROM 67 MILLION IN 1986 TO 569 MILLION LAST YEAR AND AS MR COLEMAN BANKAMERICA'S CFO POINTS OUT THERE IS A CORPORATE CUSTOMER BEHIND PRACTICALLY EVERY ONE OF THOSE TRADES JEFF BAILEY CONTRIBUTED TO THIS ARTICLE 9401310060 940131 CANADIAN CONSUMERS AND BUSINESSES SHOW INCREASE IN CONFIDENCE OTTAWA CANADIAN BUSINESS AND CONSUMER CONFIDENCE ROSE IN THE FOURTH QUARTER BUOYED BY IMPROVED ECONOMIC CONDITIONS THE CONFERENCE BOARD OF CANADA SAID THE BOARD'S INDEX OF BUSINESS CONFIDENCE INCREASED 10 FROM THE THIRD QUARTER TO 1508 ITS HIGHEST LEVEL SINCE 1989 ITS CONSUMER CONFIDENCE INDEX ROSE 14 TO 1055 THE BOARD AN INDEPENDENT BUSINESS RESEARCH GROUP WARNED THAT THE INCREASE IN CONSUMER CONFIDENCE MAY BE SHORTLIVED IF THE JOB MARKET DOESN'T SHOW SIGNIFICANT GROWTH THE INDEXES WERE BASED ON DECEMBER SURVEYS OF 400 CANADIAN BUSINESSES AND 1000 HOUSEHOLDS 9401310059 940131 INTERNATIONAL BRIEF SIEMENS AG COMPUTER UNIT ASKS STAFF TO CUT HOURS TO SAVE JOBS SIEMENS NIXDORF INFORMATIONSSYSTEME AG THE COMPUTER UNIT OF SIEMENS AG SAID IT WILL OFFER ITS GERMAN WORKERS VOLUNTARY WORKTIME REDUCTION IN EXCHANGE FOR JOB SECURITY THE COMPANY IS ASKING WORKERS TO CUT THEIR HOURS 10 TO 15 A SPOKESWOMAN SAID THAT IF ENOUGH EMPLOYEES SUBSCRIBE TO THE PROGRAM JOB CUTS FOR THE UNIT THAT HAVE ALREADY BEEN ANNOUNCED COULD BE REDUCED SIEMENS HAD SAID IT EXPECTS TO CUT ABOUT 5000 POSITIONS THIS YEAR AT THE SNI UNIT SNI EMPLOYS ABOUT 31000 PEOPLE IN GERMANY WORKERS ARE BEING ASKED TO AGREE TO REDUCED HOURS FOR AS LONG AS FOUR YEARS 9401310058 940131 THE OUTLOOK GORE'S DATA HIGHWAY ANOTHER ENTITLEMENT BY ALAN MURRAY WASHINGTON AMID THE CELEBRATION OF THE 1992 DEMOCRATIC CONVENTION CAME SOME JARRING WORDS FROM FORMER REP BARBARA JORDAN OF TEXAS WE MUST ADDRESS THE QUESTION OF ENTITLEMENTS SHE TOLD DEMOCRATS IN HER KEYNOTE ADDRESS THAT'S NOT EASY SHE ADDED REPEATING THE PHRASE TWICE FOR EMPHASIS BUT WE HAVE TO DO IT WE HAVE TO DO IT MS JORDAN'S BOOMING MESSAGE SIGNALED THE EMERGENCE OF A NEW RHETORICAL CONSENSUS IN MAINSTREAM AMERICAN POLITICS ENTITLEMENTS A FUZZY WORD FOR GOVERNMENT BENEFITS RANGING FROM SOCIAL SECURITY TO FOOD STAMPS MUST BE CUT THE MANTRA WAS HEARD THROUGHOUT LAST YEAR'S BUDGET DEBATE AND DEMOCRATIC REP MARJORIE MARGOLIESMEZVINSKY FROM PHILADELPHIA'S MAIN LINE EVEN HELD A HIGHLY PUBLICIZED CONFERENCE LAST MONTH ON THE FUTURE OF ENTITLEMENTS ATTENDED BY PRESIDENT CLINTON BUT ACTIONS SPEAK LOUDER THAN WORDS IN THE MIDST OF THIS FLURRY OF ANTIENTITLEMENT TALK THE CLINTON ADMINISTRATION HAS LAID THREE LARGE NEW ENTITLEMENT PROGRAMS ON THE TABLE THE FIRST IS A HEALTHCARE REFORM PROPOSAL THAT ENTITLES EVERY AMERICAN TO A GENEROUS HEALTHINSURANCE PLAN THE SECOND IS A WELFAREREFORM PLAN THAT WINS PRAISE FROM CONSERVATIVES BY PROMISING TO END WELFARE AS WE KNOW IT BUT IN FACT AMOUNTS TO A COSTLY PROMISE OF A JOB FOR EVERY ABLE AMERICAN AND THE THIRD AND LEAST UNDERSTOOD IS VICE PRESIDENT AL GORE'S CALL FOR UNIVERSAL SERVICE ON THE INFORMATION SUPERHIGHWAYTHE POPULAR NAME FOR A BROADBAND SYSTEM THAT ALLOWS TWOWAY COMMUNICATIONS ON MULTIPLE CHANNELS THE NATION MUST AVOID CREATING A SOCIETY OF INFORMATION HAVES SEPARATE FROM INFORMATION HAVENOTS MR GORE SAID IN A RECENT SPEECH TO HOLLYWOOD HAVES SUCH AS DISNEY'S MICHAEL EISNER IT IS CRITICALLY IMPORTANT THAT ALL CARRIERS MUST BE OBLIGED TO CONTRIBUTE ON AN EQUITABLE AND COMPETITIVELY NEUTRAL BASIS TO THE PRESERVATION AND ADVANCEMENT OF UNIVERSAL SERVICE TRANSLATION WE MUST TAX PHONE CABLE AND OTHER INFORMATION SERVICES TO SUBSIDIZE ACCESS TO THE SUPERHIGHWAY FOR EVERYONE THE NOTION OF GUARANTEEING EVERYONE ACCESS TO A SERVICE THAT DOESN'T YET EXIST MAY SEEM MORE AMUSING THAN DISTURBING AFTER ALL WHAT IS BEING GUARANTEED THE INALIENABLE RIGHT TO SHOP FROM HOME BY VIDEO OR TO WATCH INTERACTIVE COURT TELEVISION AND CAST A PERSONAL VERDICT IN THE MENENDEZ TRIAL BUT MR GORE AND HIS FOLLOWERS INSIST THAT TRAFFIC ON THE INFORMATION SUPERHIGHWAY WILL INCLUDE INVALUABLE EDUCATIONAL PROGRAMS HEALTHCARE HOT LINES AND JOBPOSTING SERVICES ANYONE WITHOUT A VEHICLE COULD BE LEFT ON THE SHOULDER OF LIFE ADMINISTRATION OFFICIALS ALSO ARGUE THAT THEIR PROPOSAL WOULD MERELY EXPAND ON THE HUGE SUBSIDIES ALREADY IMPLICIT IN THE CURRENT REGULATED PHONE SYSTEM BUSINESS AND LONGDISTANCE USERS NOW SUBSIDIZE TELEPHONE RATES FOR RESIDENTIAL AND RURAL USERS BY AS MUCH AS 20 BILLION OR MORE A YEAR BUT THAT HIDDEN TELEPHONE SUBSIDY EXHIBITS THE VERY ATTRIBUTES THAT MAKE MORE EXPLICIT GOVERNMENTENTITLEMENT PROGRAMS SO VEXING ONLY A SMALL PORTION OF THE TELEPHONE BENEFITS LESS THAN A BILLION DOLLARS SAYS ELI NOAM PROFESSOR OF FINANCE AND ECONOMICS AT THE COLUMBIA BUSINESS SCHOOL GOES TO THE TRULY NEEDY MOST OF THE SUBSIDY GOES TO THE MIDDLE CLASS AND A NOTINCONSEQUENTIAL PORTION GOES TO THE VERY AFFLUENT SUBSIDIZING FOR INSTANCE PHONE LINES TO TAOS NM AND ASPEN COLO THE SUBSIDY PLAN PROPOSED BY MR GORE WILL PROBABLY BE SIMILAR THE ADMINISTRATION HAS NO THOUGHT OF REQUIRING THAT SUBSIDIES GO ONLY TO THE NEEDY WHICH WOULD UNDERCUT THE POLITICAL BACKING THEY SEEK FROM POWERFUL SENATORS IN RURAL STATES WHO WANT THE SUBSIDIES TO SERVE THEIR CONSTITUENTS INSTEAD THE ADMINISTRATION'S PLAN WILL PROBABLY LET STATES DETERMINE HOW TO SPEND THE MONEY AND POLITICS WILL DRIVE THAT MONEY TO THE MIDDLE CLASS WHERE THE VOTES ARE THE NATION CAN AFFORD TO PROVIDE IF IT WANTS WIDERANGING SERVICES AND SUBSIDIES FOR THE POOR WHAT IT CAN'T AFFORD WITHOUT MUCH HIGHER TAXES IS TO CONTINUE TO EXPAND GOVERNMENT SUBSIDIES AND SERVICES FOR THE MIDDLE CLASS AS FORMER COMMERCE SECRETARY PETE PETERSON ILLUSTRATES IN HIS NEW BOOK FACING UP GOVERNMENT SPENDS 1098 BILLION A YEAR ON FEDERAL BENEFIT PROGRAMS FOR THOSE LIVING IN POVERTY IT SPENDS A 5707 BILLION FOR THOSE WHO AREN'T AND THE AVERAGE BENEFIT GOING TO HOUSEHOLDS WITH INCOMES OVER 100000 IS LARGER THAN THAT GOING TO HOUSEHOLDS WITH INCOMES UNDER 10000 SOME ECONOMISTS SAY THERE MAY BE AN ECONOMIC ARGUMENT FOR SUBSIDIZING UNIVERSAL ACCESS TO THE INFORMATION SUPERHIGHWAY IF EVERYONE IS ON IT IT WILL HAVE ADDED VALUE FOR BUSINESSES THAT WANT TO USE IT THAT IS A VARIANT OF WHAT ATLANTIC MAGAZINE HAS DUBBED MR CLINTON'S FIELD OF DREAMS THEORY OF ECONOMIC GROWTH WHICH ARGUED THAT IF YOU BUILD BETTER PUBLIC INFRASTRUCTURE PRIVATE INVESTMENT WILL COME BUT THAT ISN'T THE ARGUMENT MR GORE IS MAKING INSTEAD HE IS PAVING THE WAY FOR A BIG NEW MIDDLECLASS ENTITLEMENT PROGRAM THAT WOULD INCREASE THE GOVERNMENT'S DRAG ON THE ECONOMY FOR DECADES TO COME 9401310057 940131 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT LEAR SEATING CORP 145 MILLION OF SUBORDINATED NOTES DUE FEB 1 2002 WERE PRICED AT PAR TO YIELD 8 1/4 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS AND ARE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ILLINOIS BELL TELEPHONE CO 100 MILLION OF DEBENTURES DUE FEB 1 2004 WERE PRICED AS 58S AT 99495 TO YIELD 5867 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO ILLINOIS BELL IS A UNIT OF AMERITECH ILLINOIS BELL TELEPHONE CO 100 MILLION OF DEBENTURES DUE FEB 1 2025 WERE PRICED AS 6 5/8S AT 97183 TO YIELD 6845 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND DOUBLEA1 BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORP 700 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1689 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1691 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1688 IS BACKED BY 240 MILLION OF THE AGENCY'S 20YEAR 7 1/2 MORTGAGE SECURITIES AND 60 MILLION OF THE AGENCY'S 20YEAR 6 SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY NIKKO SECURITIES CO INTERNATIONAL THE OFFERING SERIES 1692 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES FEDERAL FARM BANK CREDIT SYSTEM 150 MILLION OF MEDIUMTERM NOTES DUE FEB 5 1996 WERE PRICED AT PAR TO YIELD 409 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CANADA THE CANADIAN GOVERNMENT SAID IT INTENDS TO OFFER UP TO 600 MILLION CANADIAN DOLLARS US4552 MILLION OF INFLATIONINDEXED BONDS MATURING DEC 1 2021 THE BONDS CARRY A COUPON RATE OF 425 THE SEMIANNUAL COUPON PAYMENTS AND THE FINAL REDEMPTION VALUE OF THE BONDS WILL BE ADJUSTED FOR INFLATION THE CANADIAN GOVERNMENT HAS SOLD C213 BILLION OF SUCH BONDS PROCEEDS FROM HE PLANNED ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES THE OFFERING PRICE AND OTHER DETAILS OF THE PLANNED ISSUE WILL BE ANNOUNCED LATER A GROUP OF 13 SECURITIES FIRMS HAS BEEN APPOINTED TO MARKET THE ISSUE STATENS BOSTADSFINANSIERINGS SWEDEN 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE FEB 22 1999 IN TWOTRANCHES VIA DAIWA EUROPE LTD AND FUJI INTERNATIONAL FINANCE PLC THE FIRST TRANCHE TOTALING 15 BILLION YEN PAYS INTEREST QUARTERLY FLAT AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR YEN ISSUE AND REOFFER PRICE 9985 THE SECOND TRANCHE ALSO TOTALING 15 BILLION YEN PAYS INTEREST QUARTERLY AT THREEMONTH LIBOR PLUS 20 BASIS POINTS MAXIMUM COUPON 47 ISSUE AND REOFFER PRICE 9970 FEES 020 POINT GENERAL ELECTRIC CREDIT CORP US 100 MILLION OF FLOATINGRATE NOTES MATURING MARCH 1997 AT ISSUE AND REOFFER PRICE 100 VIA KIDDER PEABODY SECURITIES CO PRINCIPAL AND INTEREST LINKED TO THE MEXICAN PESO INTEREST PAID QUARTERLY AT 20 BASIS POINTS OVER 91DAY CETES RATE FEES 1/4 POINT GE CREDIT IS A UNIT OF GENERAL ELECTRIC CO OESTERREICHISCHE POSTSPARKASSE AUSTRIA 100 MILLION OF CORRIDOR FLOATINGRATE EURONOTES DUE FEB 25 1995 AT ISSUE PRICE PAR VIA CREDITANSTALTBANKVEREIN LONDON BRANCH NOTES LINKED TO LONDON INTERBANK OFFERED RATE FOR ITALIAN LIRA INTEREST PAID SEMIANNUALLY AT 45 OVER THREEMONTH LIRA LIBOR SUBJECT TO LIBOR FALLING WITHIN FOLLOWING SIXMONTH LIBOR RANGES RANGE ONE 75 TO 9 RANGE TWO 65 TO 85 GUARANTOR REPUBLIC OF AUSTRIA FEES 015 POINTS QUEENS CENTRE FUNDING CORP US 70 MILLION OF MORTGAGEBACKED BONDS TWO TRANCHES WITH SCHEDULED MATURITY OF JAN 1 1999 VIA LEHMAN BROTHERS INTERNATRIONAL BONDS SECURED ON COMMERCIAL MORTGAGES ORIGINATOR UNDISCLOSED STATED MATURITY JAN 1 2004 TRANCHE A IS FOR 60 MILLION WITH INTEREST PAID QUARTERLY AT 80 BASIS POINTS OVER THREEMONTH LIBOR BONDS ISSUED AND REOFFERED AT 99874 TRANCHE B IS FOR 102 MILLION WITH INTEREST PAID QUARTERLY AT THREEMONTH LIBOR PLUS 215 BASIS POINTS ISSUE AND REOFFER PRICE 99867 FEES UNDISCLOSED SUDWEST LB CAPITAL MARKETS PLC GERMAN PARENT 150 BILLION ITALIAN LIRE OF 8 EUROBONDS DUE FEB 24 2004 AT ISSUE PRICE 10180 VIA BANCA DI ROMA SPA AT COMANAGER'S BREAKEVEN PRICE 9980 BONDS YIELD 803 GUARANTOR SUDWESTDEUTSCHE LANDESBANK AG FEES 2 POINTS 9401310056 940131 BUSINESS BRIEF SUN HEALTHCARE GROUP INC DEFINITIVE ACCORD IS SIGNED TO BUY MEDIPLEX GROUP INC SUN HEALTHCARE GROUP INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE MEDIPLEX GROUP INC FOR ABOUT 316 MILLION IN CASH AND STOCK THE ALBUQUERQUE NM OPERATOR OF NURSING HOMES ANNOUNCED JAN 4 THAT IT HAD TENTATIVELY AGREED TO ACQUIRE MEDIPLEX BASED IN WELLESLEY MASS FOR 11 IN CASH PLUS 128 SUN SHARES FOR EACH SHARE OF MEDIPLEX WHICH HAS ABOUT 97 MILLION COMMON SHARES OUTSTANDING MEDIPLEX PROVIDES SUBACUTE CARE WHICH INVOLVES THE TREATMENT OF PATIENTS DEPENDENT ON VENTILATORS UNDERGOING CHEMOTHERAPY OR RECOVERING FROM BURNS OR SURGERY THE TRANSACTION REMAINS SUBJECT TO THE APPROVAL OF REGULATORY AGENCIES AND OF THE SHAREHOLDERS OF BOTH COMPANIES 9401310055 940131 BUSINESS BRIEF LANDMARK GRAPHICS CORP ADVANCE GEOPHYSICAL CORP TO BE MERGED INTO A UNIT LANDMARK GRAPHICS CORP HOUSTON SAID IT AGREED TO MERGE ADVANCE GEOPHYSICAL CORP INTO A SUBSIDIARY IN A TRANSACTION VALUED AT MORE THAN 60 MILLION THE DEAL WOULDN'T INVOLVE CASH BUT RATHER AN EXCHANGE OF STOCK A LANDMARK SPOKESMAN SAID UNDER TERMS IN A LETTER OF INTENT SIGNED LAST WEEK LANDMARK WOULD ISSUE 26 MILLION NEW COMMON SHARES TO ADVANCE BASED IN DENVER IN EXCHANGE FOR ALL OF ADVANCE'S CAPITAL STOCK A DEFINITIVE AGREEMENT IS EXPECTED TO BE REACHED IN ABOUT TWO WEEKS THE SPOKESMAN SAID IT WOULD CALL FOR THE APPROVAL BY THE BOARDS OF BOTH COMPANIES THE TRANSACTION IS EXPECTED TO CLOSE BY LATE MARCH BOTH COMPANIES ARE INVOLVED IN THE USE OF COMPUTER SYSTEMS FOR OIL AND GAS EXPLORATION 9401310054 940131 AETNA REVAMPS TAKING A CHARGE OF 128 BILLION INSURER TO ABANDON BIG PART OF ITS PENSION BUSINESS ELIMINATE 4000 JOBS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN AETNA LIFE & CASUALTY CO TOOK FURTHER STEPS TO STREAMLINE ITS SPRAWLING INSURANCE BUSINESS BUT ANALYSTS SAY THE CUTBACKS MIGHT NOT BE ENOUGH TO SOLVE THE COMPANY'S LONGTERM PROBLEMS AETNA ANNOUNCED FRIDAY THAT IT WILL TAKE A 128 BILLION FOURTHQUARTER CHARGE TO RESTRUCTURE INCLUDING ABANDONING A BIG PART OF ITS PENSION BUSINESS AND ELIMINATING 4000 JOBS OR NEARLY 10 OF ITS WORK FORCE AMONG THE PENSION PRODUCTS BEING SHED ARE GUARANTEED INVESTMENT CONTRACTS OR GICS ONE OF THE HOTTEST INSURANCE PRODUCTS OF THE 1980S THE JOB CUTS HAD BEEN EXPECTED BUT THE SIZE OF THE RESULTING CHARGE SURPRISED WALL STREET STILL ANALYSTS SAID THE COMPANY MIGHT NEED TO TAKE FURTHER ACTIONS TO END A DECADE OF SLUGGISH PROFITS AND LACKLUSTER STOCK PRICE THESE COULD INCLUDE FOCUSING MORE ON PROFITABLE BUSINESSES SUCH AS HEALTH AND LIFE INSURANCE WHILE CONTINUING TO SHED UNPROFITABLE LINES THIS MAKES THE SHORTTERM EARNINGS LOOK BETTER BUT IT DOESN'T MAKE IT A BETTER COMPANY GOING FORWARD SAID ALAN ZIMMERMAN A STOCK ANALYST WITH PRUDENTIAL SECURITIES NEW YORK INVESTORS APPARENTLY RECOGNIZED THE SHORTTERM POSSIBILITIES OF THE LATEST RESTRUCTURING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY AETNA ROSE 175 TO 59875 WITH THE CHARGES AETNA EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER AND FOR THE YEAR ONCE ONE OF THE COUNTRY'S MOST PROFITABLE INSURERS AETNA HAS BEEN HURT IN RECENT YEARS BY GROWING COMPETITION FROM MORE SPECIALIZED AND EFFICIENT RIVALS LIKE OTHER BIG INSURERS AETNA HAS TRIED TO BE ALL THINGS TO ALL CUSTOMERS AT THE SAME TIME THE COMPANY HAS INCURRED BIG LOSSES ON REALESTATE INVESTMENTS AND ENVIRONMENTAL CLAIMS WHILE BEING SADDLED WITH HIGH OVERHEAD EVEN WITH THE LATEST CUTBACKS AETNA REMAINS A HUGE INSURANCE SUPERMARKET OFFERING EVERYTHING FROM HEALTH INSURANCE TO COMMERCIAL LIABILITY COVERAGE TO WORKERS COMPENSATION POLICIES INSURANCE EXPERTS SAY AETNA APPEARS RESOLVED TO SLIM DOWN BUT IT'S UNCLEAR HOW FAR AETNA IS ON THE RIGHT TRACK SAID ANALYST ALICE CORNISH OF NORTHINGTON PARTNERS HARTFORD AETNA ISN'T ALONE OTHER SOCALLED MULTILINE INSURERS SUCH AS CIGNA CORP ITT CORP'S HARTFORD INSURANCE UNIT AND TRAVELERS INC'S TRAVELERS INSURANCE UNIT HAVE HAD PROBLEMS FOCUSING THEIR OPERATIONS MOST OF AETNA'S CHARGE STEMS FROM THE COMPANY'S DECISION TO STOP SELLING GUARANTEED INVESTMENT CONTRACTS AND SINGLEPREMIUM ANNUITIES THE TWO PENSION PRODUCTS HAVE BEEN A POWERFUL DRAG ON AETNA'S PROFITS IN RECENT YEARS WITH GICS INSURANCE COMPANIES GUARANTEE A SPECIFIC RATE OF RETURN OVER THE LIFE OF THE CONTRACT DURING THE 1980S PROFITSHARING PLANS AND CORPORATE PENSION PLANS EAGERLY SNAPPED UP GICS TO TAKE ADVANTAGE OF THE GENEROUS TERMS IN AETNA'S CASE THE GICS LARGELY WERE BACKED BY REALESTATE INVESTMENTS WHEN PROPERTY PRICES NOSEDIVED IN THE LATE 1980S AND EARLY 1990S THOSE REALESTATE ASSETS BEGAN EARNING LESS THAN WHAT AETNA NEEDED TO PAY GIC INVESTORS RATHER THAN CONTINUING TO SUFFER LOSSES EACH QUARTER AETNA WILL TAKE AN 825 MILLION CHARGE TO RECOGNIZE FUTURE LOSSES ALL AT ONCE SOME INSURERS HAVE PULLED OUT OF GICS INCLUDING EQUITABLE COS AND MUTUAL LIFE INSURANCE CO OF NEW YORK OTHERS CONTINUE TO OFFER THE CONTRACTS ALTHOUGH AT LESS ATTRACTIVE TERMS THAN IN THE PAST AETNA SAYS THE 4000 JOB CUTS WILL SAVE 300 MILLION A YEAR IN PRETAX EXPENSES BY 1995 IT SPENT ABOUT 34 BILLION ON OPERATING EXPENSES LAST YEAR THE COMPANY WILL TAKE A 200 MILLION CHARGE FOR SEVERANCE PAYMENTS AND RELATED EXPENSES AETNA EMPLOYS ABOUT 42300 ABOUT ONETHIRD OF THEM IN CONNECTICUT THE COMPANY SAID 2000 JOB CUTS WILL COME IN PROPERTY AND CASUALTY 1000 IN HEALTH AND 1000 IN OTHER BUSINESSES THE JOBS WILL BE ELIMINATED OVER THE COURSE OF THE YEAR ANALYSTS SAY AETNA NOW MUST FOCUS ON IMPROVING RESULTS IN ITS PROPERTY AND CASUALTY INSURANCE BUSINESSES WHICH HAVE SUFFERED FROM INTENSE PRICE COMPETITION AND THE HIGH COSTS OF POLLUTION CLAIMS MOODY'S INVESTORS SERVICE CONFIRMED AETNA'S SENIOR DEBT RATING AT SINGLEA1 ON FRIDAY BUT SAID THE OUTLOOK FOR THE COMPANY'S PROPERTY AND CASUALTY INSURANCE UNIT'S RATINGS IS NEGATIVE IN LIGHT OF THEIR MODEST EARNINGS IN CERTAIN BUSINESS UNITS AND THEIR NEED TO FURTHER REDUCE COSTS IN A HIGHLY COMPETITIVE ENVIRONMENT AETNA CHAIRMAN RONALD COMPTON SAID THE COMPANY'S REMAINING BUSINESSES ARE WELL POSITIONED BUT NEED FINE TUNING AS WE LOOK AHEAD WE WILL CONTINUE TO REENGINEER AND REPOSITION OUR BUSINESSES SO THAT WE CAN TAKE FULL ADVANTAGE OF THE PROFIT OPPORTUNITIES IN OUR CHOSEN MARKETS HE SAID WE NEED TO MOVE BUSINESS FUNCTIONS CLOSER TO THE CUSTOMER AND WE NEED TO CONTINUE TO FIND WAYS TO IMPROVE REVENUE GROWTH AND SERVICE TO OUR CUSTOMERS WHILE DRIVING DOWN COSTS THE JOB REDUCTIONS REPRESENT THE THIRD WAVE OF CUTS IN RECENT YEARS AND ARE ANOTHER BLOW TO THE CITY OF HARTFORD IN OCTOBER 1990 AETNA LAID OFF 3000 WORKERS WHEN IN A BID TO BECOME MORE COMPETITIVE IT SPLIT THE COMPANY INTO 15 BUSINESS UNITS THAT REPORT PROFITS SEPARATELY IN JUNE 1992 FOUR MONTHS AFTER MR COMPTON TOOK THE REINS THE COMPANY ANNOUNCED ANOTHER 4800 JOB CUTS THE CUTS HAVE IMPROVED RESULTS BUT AETNA'S PROFITS ARE ONLY ABOUT HALF AS STRONG AS MORE SUCCESSFUL COMPETITORS SUCH AS AMERICAN INTERNATIONAL GROUP INC EVERY YEAR AETNA DOES SOMETHING AND EARNINGS LOOK BETTER AND THEN THE NEXT YEAR THEY DO SOMETHING ELSE THAT INVOLVES A COSTLY CHARGE SAID MICHAEL BLUMSTEIN OF MORGAN STANLEY NEW YORK AETNA ALSO CHANGED THE WAY IT ACCOUNTS FOR WORKERS COMPENSATION RESERVES RECOGNIZING THAT INJURED WORKERS COLLECT BENEFITS LONGER THAN IN THE PAST THE 574 MILLION ADDITION TO WORKERS COMPENSATION RESERVES WILL RESULT IN A 259 MILLION CHARGE IF IT HADN'T TAKEN THE CHARGES AETNA WOULD HAVE REPORTED ABOUT 600 MILLION IN OPERATING PROFIT FOR 1993 COMPARED WITH 192 MILLION IN THE PRIOR YEAR AETNA WILL REPORT EARNINGS ON FEB 9 9401310053 940131 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 17 NEW LISTINGS INCLUDING 14 INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MIDAMERICA APARTMENT COMMUNITIES INC MEMPHIS TENN UNDER MAA A REAL ESTATE INVESTMENT TRUST O'SULLIVAN INDUSTRIES HOLDINGS INC LAMAR MISS OSU A FURNITURE MAKER PLAYTEX PRODUCTS INC STAMFORD CONN PTX A MAKER OF PERSONAL CARE PRODUCTS SECURITYCONNECTICUT CORP AVON CONN AN INSURANCE HOLDING COMPANY AND AMERICAN DEPOSITORY SHARES OF CRISTALERIAS DE CHILE SA SANTIAGO CHILE CGW A PRODUCER OF GLASS CONTAINERS THE SHARES ARE LISTED ON THE SANTIAGO STOCK EXCHANGE THE NASDAQ BEGAN TRADING IN THE FOLLOWING INITIAL OFFERINGS IN ITS NATIONAL MARKET SYSTEM CMG INFORMATION SERVICES INC WILMINGTON MASS A DEVELOPER OF INFORMATIONBASED PRODUCTS AND SERVICES CMGI COMMONWEALTH FEDERAL SAVINGS BANK VALLEY FORGE PA CMSB A SAVINGS BANK GAMETEK INC NORTH MIAMI BEACH FLA GAME A SOFTWARE PUBLISHER GP FINANCIAL CORP FLUSHING NY GNPT A SAVINGS BANK CONVERSION FROM MUTUAL TO STOCK FORM HARRIS SAVINGS BANK HARRISBURG PA HARS A SAVINGS BANK HILITE INDUSTRIES INC CARROLLTON TEXAS HILI A MANUFACTURER OF ENGINEERED PARTS INTERIM SERVICES INC FORT LAUDERDALE FLA INTM A PERSONNEL SERVICES PROVIDER JAMESON INNS INC ATLANTA GA JAMS ORGANIZED TO ACQUIRE EQUITY INTERESTS IN MOTEL PROPERTIES LA T SPORTSWEAR INC BALL GROUND GA LATS A SPORTSWEAR MANUFACTURER NEXAGEN INC BOULDER COLO NXGN A PHARMACEUTICAL DEVELOPER PI PARENT CORP SANTA CRUZ CALIF PLNX A MAKER OF TELEPHONE HEADSETS ANCHOR GAMING LAS VEGAS NEV SLOT AN OPERATOR OF GAME MACHINES PERSONNEL MANAGEMENT INC SHELBYVILLE IND TPMI A PROVIDER OF THE FOLLOWING COMPANIES ALSO BEGAN TRADING ON THE NASDAQ NATIONAL MARKET BOSTON CHICKEN INC NAPERVILLE ILL BOSTG AN OPERATOR OF FOOD SERVICE STORES BATTERY TECHNOLOGIES INC ONTARIO CANADA BTIOF A RESEARCH COMPANY AND JACKSON HEWITT INC VIRGINIA BEACH VA AN INCOME TAX SERVICE THE AMERICAN STOCK EXCHANGE BEGAN TRADING DEPOSITORY UNITS IN AMERICAN INSURED MORTGAGE INVESTORS LP SERIES 86 AND AMERICAN INSURED MORTGAGE INVESTORS LP SERIES 88 AMEX ALSO BEGAN TRADING SALOMON INC'S EQUITYLINKED SECURITIES TIED TO SNAPPLE BEVERAGE CORP COMMON STOCK AND LISTED 18 MILLION CONSTANT MATURITY US TREASURY YIELD INCREASE WARRANTS ISSUED BY MERRILL LYNCH & CO THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON ANTEC CORP THE CBOE ALSO LISTED LEAPS ON AMOCO CORPS 9401310052 940131 BUSINESS BRIEF LINCARE HOLDINGS INC FIRM IS BEING INVESTIGATED FOR SERVICES TO A PHARMACY LINCARE HOLDINGS INC SAID IT IS BEING INVESTIGATED BY THE US ATTORNEY'S OFFICE FOR THE MIDDLE DISTRICT OF FLORIDA FOR SERVICES IT PROVIDED TO A FLORIDA PHARMACY THAT SUPPLIED MEDICATIONS TO HOME RESPIRATORY PATIENTS LINCARE A HOMEHEALTHCARE COMPANY BASED IN CLEARWATER FLA SAID IT PROVIDED VARIOUS MARKETING FIELDADMINISTRATION AND PATIENT SERVICES TO THE PHARMACY THE CONTRACTS WITH THE PHARMACY WERE IN EFFECT FROM FEBRUARY 1989 TO APRIL 1992 AND ACCOUNTED FOR LESS THAN 1 OF LINCARE'S REVENUE IN THAT PERIOD THE COMPANY SAID LINCARE EXECUTIVES SAID THAT THE COMPANY WAS COOPERATING WITH THE INVESTIGATION AND THAT THEY WILL SHOW THAT SERVICES WERE PROVIDED IN ACCORDANCE WITH ALL APPLICABLE FEDERAL LAWS 9401310051 940131 BUSINESS BRIEF FIRST FIDELITY BANCORP AGREEMENT SET FOR PURCHASE OF FIRST INTERBANCORP INC FIRST FIDELITY BANCORP SAID IT WILL BUY FIRST INTERBANCORP INC FOR 56 MILLION OR 2420 A SHARE THE NEWS SENT FIRST INTERBANCORP SHARES UP 2875 OR 14 TO 23125 IN NASDAQ STOCK MARKET TRADING FIRST FIDELTY CLOSED AT 43375 DOWN 373 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MOVE WILL EXPAND FIRST FIDELITY'S BUSINESS IN THE HUDSON VALLEY REGION OF NEW YORK WHERE FIRST INTERBANCORP OWNS THE 16BRANCH MIDHUDSON SAVINGS BANK FIRST INTERBANCORP WITH 521 MILLION IN ASSETS IS BASED IN FISHKILL NY FIRST FIDELITY LAWRENCEVILLE NJ HAS 338 BILLION IN ASSETS AND MORE THAN 650 OFFICES THE FIRMS SAID THEY EXPECT TO COMPLETE THE PURCHASE IN THE THIRD QUARTER OF 1994 PENDING APPROVAL BY REGULATORS AND FIRST INTERBANCORP SHAREHOLDERS 9401310050 940131 BUSINESS BRIEF LITTON INDUSTRIES INC UNIT COMPLETES PURCHASE OF STAKE IN OIL SERVICES FIRM LITTON INDUSTRIES INC'S WESTERN ATLAS INC UNIT SAID IT COMPLETED ITS PREVIOUSLY REPORTED 558 MILLION PURCHASE FROM DRESSER INDUSTRIES INC OF ALL STOCK WESTERN ATLAS DIDN'T ALREADY OWN IN AN OIL FIELD SERVICES COMPANY LITTON IN BEVERLY HILLS CALIF ALSO SAID THAT ON JAN 14 WESTERN ATLAS WHICH SOON IS TO BE SPUN OFF TO LITTON SHAREHOLDERS ACQUIRED MOST OF THE OPERATING ASSETS OF HALLIBURTON CO'S GEOLOGICAL SEISMIC BUSINESS FOR ABOUT 190 MILLION THE PURCHASE FROM DRESSER COMPRISED A 295 MINORITY STAKE IN AN OIL FIELD SERVICE COMPANY THE PAYMENT WAS IN CASH AND NOTES LITTON HAS OWNED THE OTHER 705 OF THE BUSINESS WHICH WILL BECOME PART OF THE NEW INDEPENDENT OPERATION INTO WHICH LITTON HAS PUT ITS NONDEFENSE HOLDINGS A SPOKESMAN FOR WESTERN ATLAS WHOSE SHARES WERE TO HAVE BEEN SPUN OFF TO LITTON SHAREHOLDERS BEFORE THE END OF 1993 ON A 1FOR1 BASIS SAID THE TRANSACTION HAS BEEN DELAYED BY THE RECENT PURCHASES 9401310049 940131 MANAGER'S JOURNAL A LASTING LEGACY FOR MANAGERS DEMING'S REMARKABLE VISION BY RICHARD GORDON W EDWARDS DEMING'S VISION ABOUT HOW COMPANIES SHOULD BE RUN HAS BEEN BOILED DOWN TO WHAT HE CALLED 14 POINTS FOR MANAGEMENT OUR COMPANY IN PORTLAND ORE IS ONE CASE STUDY IN THE SUCCESS THAT COMES FROM IMPLEMENTING SOME OR ALL OF MR DEMING'S PRINCIPLES HIS 14TH POINT THAT EVERYONE IN THE COMPANY MUST BE PUT TO WORK TO ACCOMPLISH THE FIRM'S TRANSFORMATION MEANS THERE MUST BE PERSONAL TRANSFORMATION AS WELL AND THAT DRAWS FROM MR DEMING'S 13TH POINT THAT COMPANIES INSTITUTE A PROGRAM OF SELFIMPROVEMENT THROUGH READING BOOKS ON PERSONAL GROWTH I FELT MYSELF GROW IN MY ABILITY TO COMMUNICATE AND SAW MY EFFECTIVENESS IN BUSINESS GROW I WANTED TO SHARE THIS GROWTH WITH MY STAFF SO I ADDED A LIBRARY TO OUR LUNCHROOM THIS EVOLVED INTO WHAT WE CALL OUR LEARN AND EARN PROGRAM IN WHICH EMPLOYEES ARE PAID TO READ BOOKS LISTEN TO TAPES OR ATTEND SEMINARS AND THEN MAKE A REPORT TO ME ABOUT WHAT THEY HAVE LEARNED EMPLOYEES GET AS MUCH AS 30 EXTRA IN THEIR PAYCHECKS PER REPORT SOME BOOKS ARE MANDATORY READING SUCH AS THE POWER OF ETHICAL MANAGEMENT WHICH EVERY NEW EMPLOYEE MUST READ WITHIN THE FIRST 90 DAYS OF EMPLOYMENT RAISES ARE OFTEN TIED TO THE EMPLOYEE'S EFFORTS AT SELFIMPROVEMENT LEARN AND EARN HAS ALSO HELPED FULFILL MR DEMING'S FIRST RECOMMENDATION THAT COMPANIES CREATE CONSTANCY OF PURPOSE WE ARE ALL SINGING FROM THE SAME SONG SHEET NOW AS A RESULT COMMUNICATIONS HAVE IMPROVED NOT JUST WITH THE CUSTOMERS BUT WITHIN THE FIRM IMPROVING THE STAFF'S ABILITY TO COMMUNICATE HAS DRIVEN OUT FEAR HIS EIGHTH POINT BROKEN DOWN BARRIERS BETWEEN DEPARTMENTS HIS NINTH AND MADE POSSIBLE OTHER INNOVATIONS FOR EXAMPLE WE HAVE ROUND TABLE DISCUSSIONS EVERY MONTH IN WHICH ALL EMPLOYEES PARTICIPATE ANY TOPIC IS FAIR GAME FROM FINANCES TO PROBLEMS IN PRODUCTION IF WE HAD TRIED SUCH A THING BEFORE OUR COMMUNICATION SKILLS WERE IMPROVED PEOPLE COULD HAVE RETREATED INTO DEFENSIVENESS AND TURF PROTECTION AND NOTHING WOULD EVER HAVE CHANGED THE PEER REVIEW PROCESS IS ANOTHER INNOVATION MADE POSSIBLE BY IMPROVED COMMUNICATIONS IN YEARS PAST WHEN SOMEONE WANTED A RAISE HE WOULD COME BEFORE HIS MANAGER AND PRESENT HIS CASE NOW BEFORE HIS SITUATION IS EVEN REVIEWED THERE ARE CERTAIN CRITERIA TO BE MET PAY REVIEWS ARE LINKED TO GOALS MET ON THE JOB AS WELL AS THE NUMBER OF SEMINARS ATTENDED OR BOOKS READ THE EMPLOYEE FILLS OUT A FORM AND SUBMITS IT TO HIS SUPERVISOR AND ONE OR TWO PEOPLE HE WORKS CLOSELY WITH THEN THE GROUP SITS TOGETHER AND EVALUATES THE APPROPRIATENESS OF A RAISE IT PUTS THE BURDEN OF RESPONSIBILITY ON THE EMPLOYEE TO DEMONSTRATE THAT A RAISE IS WARRANTED HE DOESN'T GET IT BY DEFAULT SO THAT WE DON'T BECOME TOO HIDEBOUND IN ALL OUR PROGRAMS WE ALSO HAVE AN EXCEPTION TO THE RULE PROGRAM IF THERE IS A REQUEST TO BREAK WITH COMPANY RULES EVERYONE HAS TO VOTE ON IT I THINK THIS IS THE FINEST FLOWER OF MR DEMING'S THINKING HE DIDN'T WANT TO ENSLAVE BUSINESS TO THE RULES BUT TO FREE IT TO CREATIVELY MEET CHALLENGES WHILE MAKING PROFITS MR GORDON IS THE PRESIDENT OF IPD CO A PORTLAND ORE MANUFACTURER OF AUTOMOTIVE PARTS SEE RELATED ARTICLE DEMING'S NOT FOR US WSJ JAN 31 1994 9401310048 940131 BUSINESS BRIEF SKIS ROSSIGNOL PROFIT IN CURRENT FISCAL YEAR IS EXPECTED TO NEARLY TRIPLE FRENCH SPORTINGGOODS COMPANY SKIS ROSSIGNOL PARIS SAID IT EXPECTS TO REPORT CONSOLIDATED NET INCOME OF CLOSE TO 100 MILLION FRANCS 17 MILLION FOR THE YEAR ENDING MARCH 31 ALMOST THREE TIMES THE YEAREARLIER 366 MILLION FRANCS THE COMPANY SAID ITS DIVIDEND WILL REFLECT THE EXPECTED TREND IN EARNINGS AND WILL VIRTUALLY DOUBLE IT PAID OUT A NET DIVIDEND OF 12 FRANCS LAST YEAR ANALYSTS SAID THE EARNINGS PROJECTION WAS BETTER THAN THEY HAD EXPECTED SKIS ROSSIGNOL SAID CONSOLIDATED REVENUE IN THE CURRENT YEAR IS EXPECTED TO RISE MORE THAN 12 FROM THE 169 BILLION FRANCS A YEAR EARLIER SKIS ROSSIGNOL SAID SALES WERE BOOSTED BY GOOD SNOWFALLS SKIBOOT SALES ARE UP 25 AND THE COMPANY'S TWO BRANDS LANGE AND ROSSIGNOL TOGETHER HOLD CLOSE TO 17 OF THE WORLD MARKET LOOKING AHEAD SKIS ROSSIGNOL SAID IT'S CONFIDENT ABOUT THE FUTURE AS A RESULT OF NEW LINES OF SKIS BOOTS AND GOLF EQUIPMENT IMPROVED PRODUCTIVITY AND NO FOREIGNEXCHANGE EXPOSURE SALES SHOULD RISE MORE THAN 10 THIS YEAR AND PROFIT SHOULD GROW AT AN EVEN FASTER PACE IT SAID 9401310047 940131 MANAGER'S JOURNAL A LASTING LEGACY FOR MANAGERS DEMING'S NOT FOR US BY WILLIAM G LEE JAPAN INC GIVES MUCH CREDIT FOR ITS POSTWAR BOOM TO W EDWARDS DEMING THE PIONEERING QUALITY MANAGEMENT GURU BUT HIS RECENT DEATH AT AGE 93 THE DEEP RECESSION IN JAPAN AND THE STIFF NEW PRESSURES FACING AMERICAN BUSINESS NOW SUGGEST THAT WE TAKE STOCK MUCH OF MR DEMING'S LEGACY IS DESERVEDLY SECURE HE BELIEVED IN BUILDING QUALITY INTO PRODUCTS RATHER THAN INSPECTING FOR IT LATER IN TREATING WORKERS AS ASSETS AND IN ENGAGING THEIR MINDS AS WELL AS THEIR HANDS IN JAPAN HIS METHODS HELPED TURN MANY COMPANIES INTO RICH GLOBAL PLAYERS BUT MR DEMING'S PHILOSOPHY ALWAYS SEEMED MORE APPLICABLE TO THE JAPANESE LOCKSTEP STYLE OF MANAGEMENT HE EXUDED THE AURA OF A GURU URGED THAT HIS SYSTEM BE ENTHRONED AS AN INSTITUTION IN EVERY ORGANIZATION AND BROOKED NO DISSENT FROM HIS EXECUTIVEDISCIPLES SUCH AN APPROACH TENDS TO STIFLE SKEPTICAL CONTENTIOUS AND INDEPENDENTMINDED AMERICAN WORKERS FLORIDA POWER & LIGHT FOR INSTANCE WENT FOR THE DEMING PRIZE AND WON IT IN 1989 BUT THE UTILITY INFLICTED MAJOR DAMAGE ON ITS CULTURE IN THE PROCESS AND WOUND UP DISMANTLING MUCH OF ITS QUALITY PROGRAM THE REASON IT HAMPERED THOUGHT INNOVATION AND MEANINGFUL RESULTS WHILE ENCOURAGING GROUPTHINK EXECUTIVE MEDDLING AND DOGMATIC FAITHFULNESS TO QUALITY PROCESSES AT THE EXPENSE OF CORPORATE PERFORMANCE ONE QUALITY TEAM DUTIFULLY APPLIED MR DEMING'S ELABORATE SEVENSTEP DECISIONMAKING PROCESS TO MOVE A WATER COOLER MR DEMING'S SYSTEM STARTS BY COMPREHENSIVELY TRAINING EVERYONE IN THE ORGANIZATION IN HIS METHODS PERFORMANCE IMPROVEMENTS MIGHT TAKE YEARS TO HAPPEN A TROUBLED PHILADELPHIA ELECTRIC GENERATING STATION SOUGHT FAST IMPROVEMENT INSTEAD BY ESCHEWING THE DEMING APPROACH AND FORMING AUTONOMOUS TEAMS THAT HUNTED FOR SELFEVIDENT PROBLEMS TO FIX SUCH AS LEAKY VALVES AND DRAFTY FURNACES THEY GAINED CONFIDENCE NOT FROM INDOCTRINATION BUT FROM TANGIBLE SUCCESS THEY INVENTED A NUMBER OF HIGHLY CREATIVE PROCESSES THAT NO TRAINING PROGRAM COULD TEACH AND DOUBLED THE ORIGINAL SAVINGS GOAL A ONCE TRADITIONBOUND AND HIERARCHAL ORGANIZATION WAS LOOSENED UP AND IS NOW MORE FLEXIBLE AND OPEN TO CHANGE COMPANIES THAT GO OVERBOARD ON DEMINGISM OFTEN SUFFER LIKE FP&L FROM TOPDOWN MEDDLING GENERAL ELECTRIC COMBATS THAT WITH WORK OUT MEETINGS DESIGNED BY CHAIRMAN JACK WELCH TO FOSTER LOCAL SOLUTIONS TO PROBLEMS WORKERS AT GE CONFRONT THEIR BOSSES OPENLY IN TOWN HALL MEETINGS MAKING FREEWHEELING SUGGESTIONS GETTING DECISIONS ON THE SPOT AND THEY GET RESULTS FOR EXAMPLE WHEN EMPLOYEES AT A SCHENECTADY TURBINE PLANT COMPLAINED ABOUT ITS MILLING MACHINES THEY GOT AUTHORIZATION TO TEST APPROVE AND PURCHASE 20 MILLION OF REPLACEMENTS CYCLE TIME FOR MILLING STEEL DROPPED 80 CUTTING INVENTORY COSTS AND BOOSTING CUSTOMER RESPONSIVENESS NONE OF THIS DETRACTS FROM MR DEMING'S ACHIEVEMENTS BUT NO THEORY OR SYSTEM CAN FULLY ACCOUNT FOR SOMETHING AS COMPLEX AS A HUMAN ORGANIZATION COMPANIES LIKE GE APPEAR WELL POISED TO SUCCEED NOT BECAUSE OF THEIR DEVOTION TO ANY MANAGEMENT SYSTEM BUT BECAUSE THEY BUILD ON DISTINCTLY AMERICAN INSTITUTIONS MR LEE IS HEAD OF A DALLASBASED CONSULTING FIRM SEE RELATED ARTICLE DEMING'S REMARKABLE VISION WSJ JAN 31 1994 9401310046 940131 BUSINESS BRIEF BIRD MEDICAL TECHNOLOGIES INC FIRM EXPECTS TO REPORT RISE IN 4THQUARTER PROFIT BIRD MEDICAL TECHNOLOGIES INC PALM SPRINGS CALIF EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF 550000 OR EIGHT TO 10 CENTS A SHARE FELIX T TROILO PRESIDENT AND CHIEF EXECUTIVE SAID THE RESULTS COMPARE WITH NET OF 234000 OR FOUR CENTS A SHARE A YEAR EARLIER SALES ROSE TO ABOUT 165 MILLION FROM 128 MILLION MR TROILO SAID THE MAKER OF RESPIRATORY CARE AND INFECTIONCONTROL PRODUCTS FORECASTS A 20 GROWTH IN SALES AND POSSIBLY MORE FOR 1994 HE SAID FOR THE YEAR THE COMPANY EXPECTS TO REPORT NET OF 12 MILLION TO 13 MILLION OR 19 CENTS TO 21 CENTS A SHARE SALES CLIMBED 20 TO 524 MILLION FROM 438 MILLION BIRD MEDICAL HAD A 1992 NET LOSS OF 14 MILLION OR 22 CENTS A SHARE AFTER A ONETIME PRETAX CHARGE OF 16 MILLION RELATED TO RESTRUCTURING 9401310045 940131 BUSINESS BRIEFS MYERS INDUSTRIES INC AKRON OHIO SAID IT ACQUIRED CERTAIN ASSETS AND OPERATIONS OF NORTHWEST TIRE SHOP SUPPLY CO OF PORTLAND OREGON MYERS INDUSTRIES MAKES REUSABLE PLASTIC STORAGE SYSTEMS AND DISTRIBUTES EQUIPMENT AND SUPPLIES FOR THE TIRE SERVICING AND REPAIR INDUSTRIES TERMS WEREN'T DISCLOSED COLTEC INDUSTRIES INC PINE BLUFF ARK COMPLETED THE SALE OF ITS CENTRAL MOLONEY TRANSFORMER DIVISION TO THE DIVISION'S SENIOR MANAGERS THE SALE FOLLOWS COLTEC'S STRATEGY TO FOCUS ON DIVISIONS SERVING AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL MARKETS TERMS WEREN'T DISCLOSED HORIZON HEALTHCARE CORP ALBUQUERQUE NM ACQUIRED THE ASSETS OF MEDICAL DIAGNOSTIC SERVICE INC A CARDIOPULMONARY AND RADIOLOGY ULTRASOUND CONCERN SERVING NEVADA NORTHERN ARIZONA AND EASTERN CALIFORNIA TERMS WEREN'T DISCLOSED MATRIX SERVICE CO TULSA OKLA SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE BROWN STEEL CONTRACTORS INC NEWMAN GA THE ACQUISITION IS EXPECTED TO BE COMPLETED BY MIDAPRIL BANKWORCESTER CORP WORCESTER MASS SAID ITS SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE INSTITUTION BY BANK OF BOSTON CORP PENDING REGULATORY APPROVAL BANK OF BOSTON AGREED IN SEPTEMBER TO ACQUIRE BANKWORCESTER FOR 34 A SHARE OR ABOUT 247 MILLION ALCO STANDARD CORP'S UNISOURCE UNIT OF VALLEY FORGE PA ACQUIRED HOPACO THE HAWAIIAN PAPER DISTRIBUTION ARM OF PAPERPRODUCT COMPANY BOISE CASCADE CORP TERMS WEREN'T DISCLOSED 9401310044 940131 MARKETING BRIEF NATIONAL MEDIA CORP BOARD REJECTS TAKEOVER BID FROM HOMESHOPPING FIRM INFOMERCIAL MARKETER NATIONAL MEDIA CORP SAID ITS BOARD UNANIMOUSLY REJECTED AN UNSOLICITED 1175 MILLION TAKEOVER BID BY VALUEVISION INTERNATIONAL INC A MINNEAPOLIS HOMESHOPPING NETWORK IN A STATEMENT PHILADELPHIABASED NATIONAL MEDIA SAID ITS BOARD ADVISED BY UBS SECURITIES INC CONSIDERED THE 10PERSHARE BID FINANCIALLY INADEQUATE IT SAID IT WILL DEVELOP A PLAN TO MAXIMIZE SHAREHOLDER VALUE THAT COULD INCLUDE THE SALE OF COMPANY ASSETS OR BUSINESSES OR THE SALE OF THE COMPANY AS A WHOLE A SPOKESMAN FOR VALUEVISION SAID THE COMPANY HAD NO RESPONSE NATIONAL MEDIA STOCK CLOSED AT 11125 UP 125 CENTS IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY VALUEVISION CLOSED AT 1225 DOWN 1375 CENTS IN NASDAQ STOCK MARKET TRADING 9401310043 940131 WHO'S NEWS ABAXIS INC ABAXIS INC SUNNYVALE CALIF THIS MEDICALDIAGNOSTICS COMPANY SAID KURT E AMUNDSON CHIEF FINANCIAL OFFICER AND SECRETARY RESIGNED TO PURSUE OTHER INTERESTS EFFECTIVE IMMEDIATELY NO SUCCESSOR WAS NAMED 9401310042 940131 BUSINESS BRIEF COLLINS & AIKMAN GROUP INC KAYSERROTH CORP UNIT SOLD FOR ABOUT 170 MILLION COLLINS & AIKMAN GROUP INC SAID IT SOLD ITS KAYSERROTH CORP SUBSIDIARY TO LEGWEAR ACQUISITION CORP FOR ABOUT 170 MILLION AND A WARRANT TO PURCHASE 10 OF THE EQUITY OF LEGWEAR WITHIN THREE YEARS COLLINS SAID THE WARRANT CAN BE REPURCHASED BY LEGWEAR FOR 10 MILLION ABOUT 66 MILLION WAS USED TO PAY BANK DEBT OUTSTANDING OF KAYSERROTH COLLINS SAID THE REST OF THE PROCEEDS WILL BE USED FOR GENERAL COMPANY PURPOSES INCLUDING REDEMPTION OF A PORTION OF COLLINS & AIKMAN GROUP'S SUBORDINATED NOTES DUE 1995 OR OTHER DEBT LEGWEAR ACQUISITION WAS ORGANIZED BY GRUPO SYNKRO SA AND A GROUP OF MEXICAN INVESTORS IN NOVEMBER GROUPO SYNKRO OF MEXICO CITY IS THE LARGEST PRODUCER AND DISTRIBUTOR OF LEGWEAR IN MEXICO AND ONE OF THE TOP FIVE WORLDWIDE KAYSERROTH GREENSBORO NC IS THE MAKER OF BRAND NAME AND PRIVATE LABEL WOMEN'S AND MEN'S LEGWEAR INCLUDING THE NO NONSENSE AND BURLINGTON BRANDS COLLINS & AIKMAN MAKES AND DISTRIBUTES AUTOMOTIVE TEXTILES FABRICS COMMERCIAL FLOOR AND WALLCOVERINGS 9401310041 940131 BUSINESS BRIEF HERSHEY FOODS CORP QUARTERLY PROFIT ROSE 12 DESPITE SOFT SALES OF CANDY HERSHEY FOODS CORP'S FOURTHQUARTER PROFIT INCREASED 12 DESPITE SOFT SALES IN THE US CANDY BUSINESS THE HERSHEY PA CONCERN SAID NET INCOME CLIMBED TO 922 MILLION OR 104 A SHARE FROM 823 MILLION OR 91 CENTS A SHARE A YEAR AGO SALES GREW 69 TO 104 BILLION FROM 9695 MILLION HERSHEY ATTRIBUTED THE SALES GAINS TO ITS STRONG PASTA BUSINESS AND CONTRIBUTIONS FROM RECENTLY ACQUIRED FOOD BUSINESSES IN EUROPE THE RESULTS WERE IN LINE WITH EXPECTATIONS AND HERSHEY STOCK CLOSED FRIDAY AT 48625 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DESPITE A GENERALLY BAD YEAR FOR CANDY SALES HERSHEY CHOCOLATE USA GAINED MARKET SHARE FOR THE YEAR THE PASTA GROUP GAINED MARKET SHARE AS WELL 9401310040 940131 BUSINESS BRIEF ROYAL DUTCH/SHELL GROUP PROFIT MORE THAN DOUBLED IN FOURTH PERIOD AT SHELL OIL SHELL OIL CO HOUSTON SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED TO 152 MILLION FROM 71 MILLION ON A 79 DROP IN REVENUE TO 515 BILLION FROM 559 BILLION THE UNIT OF THE ANGLODUTCH ROYAL DUTCH/SHELL GROUP SAID COSTCUTTING HELPED THE BOTTOM LINE AS WELL AS AN IMPROVED PERFORMANCE IN ITS CHEMICAL SECTOR SALES OF REFINED PRODUCTS ALSO GREW THOSE BENEFITS HOWEVER WERE PARTLY OFFSET BY SHARPLY LOWER OIL PRICES EARNINGS FROM THE EXPLORATION AND PRODUCTION SECTOR FELL 33 MILLION TO 115 MILLION IN THE QUARTER SPECIAL ITEMS REDUCED EARNINGS BY 28 MILLION A YEAR EARLIER THE COMPANY HAD CHARGES OF 88 MILLION IN 1993 NET WAS 781 MILLION COMPARED WITH A LOSS OF 190 MILLION IN 1992 THE 1992 RESULTS INCLUDED CHARGES OF 635 MILLION RELATED TO ACCOUNTING CHANGES THE COMPANY SAID REVENUE DECLINED 28 TO 2109 BILLION FROM 2170 BILLION 9401310039 940131 BUSINESS BRIEF PEGASUS GOLD INC EL CONDOR RESOURCES IS SET TO BE ACQUIRED FOR STOCK PEGASUS GOLD INC SPOKANE WASH SAID IT AGREED TO ACQUIRE CANADA'S EL CONDOR RESOURCES LTD A GOLD AND COPPER CONCERN FOR 570 A SHARE OR 823 MILLION IN PEGASUS STOCK EL CONDOR IS BASED IN VANCOUVER BRITISH COLUMBIA ITS PRINCIPAL ASSET IS A 60 INTEREST IN THE KEMESS SOUTH GOLD AND COPPER DEPOSIT IN NORTHCENTRAL BRITISH COLUMBIA THE REMAINING 40 IS OWNED BY ST PHILIPS RESOURCES INC OF VANCOUVER EL CONDOR IS THE PROJECT OPERATOR MINING AT THE SITE IS AWAITING REQUIRED PERMITS PEGASUS WHICH PRODUCES MORE THAN 400000 OUNCES OF GOLD A YEAR SAID THE ACQUISITION WOULD HELP IT REACH ITS GOAL OF INCREASING PRODUCTION TO ONE MILLION OUNCES A YEAR BY THE END OF THE DECADE THE MERGER ACCORD WAS ANNOUNCED AFTER THE STOCK MARKET CLOSED FRIDAY IN NASDAQ STOCK MARKET TRADING EL CONDOR SHARES CLOSED AT 5125 UP 3125 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING PEGASUS GOLD FELL 25 CENTS TO 22375 9401310038 940131 BUSINESS BRIEF CROWNX INC CANADIAN INVESTMENT GROUP SELLS ITS 24 VOTING STAKE POPLAR CORP A CANADIAN INVESTMENT GROUP SAID IT SOLD ITS 24 VOTING INTEREST IN CROWNX INC FOR 367 MILLION CANADIAN DOLLARS US279 MILLION ABOUT TWO TO THREE TIMES WHAT THE GROUP PAID FOR THE SHARES THREE YEARS AGO POPLAR WHICH REPRESENTS SEVERAL CANADIAN INSURANCE COMPANIES AND OTHER INVESTORS SAID IT SOLD ITS 2825000 CROWNX COMMON SHARES AND 70000 NONVOTING CLASS A SHARES STEPHEN JOHNSON A VICE PRESIDENT AT KOLOSHUK FARRUGIA A SECURITIES DEALER AND PART OF THE POPLAR GROUP SAID THE GROUP HAD BOUGHT THE CROWNX COMMON SHARES IN TWO BLOCKS AT C4 A SHARE AND C6 A SHARE ABOUT THREE YEARS AGO THE SHARES WERE SOLD FRIDAY FOR C13 EACH CROWNX'S REMAINING CONTROLLING SHAREHOLDERS NOW HAVE A COMBINED VOTING STAKE IN THE COMPANY OF 656 UP FROM 507 PREVIOUSLY HE SAID CROWNX WHICH HAS INTERESTS IN LIFE INSURANCE AND NURSING HOMES IS CONTROLLED BY THE BURNS FAMILY OF TORONTO AND THE JODREY FAMILY OF NOVA SCOTIA 9401310037 940131 CHAIRMAN OF TENNECO HAS FOLLOWUP SURGERY HOUSTON TENNECO INC SAID ITS CHAIRMAN MICHAEL WALSH UNDERWENT SURGERY TO REMOVE DEAD TISSUE REMAINING FROM A BRAIN TUMOR DISCOVERED LAST YEAR BUT THAT HIS PROGNOSIS APPEARS FAVORABLE THE COMPANY SAID THE SURGERY PERFORMED SATURDAY IN BOSTON IS CONSIDERED STANDARD TESTS BEFORE AND AFTER THE OPERATION CONFIRM EARLIER DIAGNOSES THAT MR WALSH APPEARS TO HAVE NO ACTIVE TUMOR LESIONS THE 51YEAROLD CHAIRMAN WAS DIAGNOSED WITH A MIDGRADE BRAIN TUMOR IN JANUARY 1993 HE UNDERWENT A TREATMENT OF RADIATION AND CHEMOTHERAPY IN NOVEMBER HE REPORTED THAT HIS DOCTORS TOLD HIM THE TUMOR HAD STOPPED GROWING AND WAS BREAKING UP MR WALSH HAS CONTINUED HIS REGULAR DUTIES AT TENNECO A 13 BILLION INDUSTRIAL CORPORATION WHICH HE HAS BEEN LEADING THROUGH A RESTRUCTURING PROGRAM 9401310036 940131 BUSINESS BRIEF BLOUNT INC CADDELL CONSTRUCTION TO BUY MAJOR PORTION OF A DIVISION BLOUNT INC SAID IT SIGNED A LETTER OF INTENT TO SELL A MAJOR PORTION OF ITS CONSTRUCTION DIVISION TO CADDELL CONSTRUCTION CO OF MONTGOMERY ALA TERMS WEREN'T DISCLOSED THE SALE WON'T INCLUDE BLOUNT'S POZZO CONSTRUCTION CO SUBSIDIARY BUT BLOUNT ALSO BASED IN MONTGOMERY SAID IT WILL EVENTUALLY DISPOSE OF THAT OPERATION WINTON M BLOUNT CHAIRMAN SAID THE MOVE WILL ELIMINATE SUBSTANTIAL OPERATING LOSSES BLOUNT HAS EXPERIENCED IN ITS CONSTRUCTION OPERATIONS OVER THE PAST SEVERAL YEARS HE SAID THE DECISION WILL HELP TO FOCUS THE COMPANY'S RESOURCES ON GROWING ITS MANUFACTURING BUSINESSES IN FISCAL 1993 BLOUNT HAD NET INCOME OF 72 MILLION OR 59 CENTS A SHARE ON 6914 MILLION IN SALES 9401310035 940131 FOR WHAT AILS JAPAN SOME THINK THE CURE IS A GOOD HOT SLOGAN SEARCH IS ON FOR SOMETHING WITH THE YESTERYEAR ZING OF EXPEL THE BARBARIANS' BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN A NATION PROPORTIONATE TO ITS HEIGHT SEEM STRANGE HANG ON JAPAN IS LOOKING FOR A NEW NATIONAL SLOGAN IT IS AN UNOFFICIAL SEARCH OF COURSE BUT THE UNOFFICIAL OLD SLOGANS JUST WON'T WORK ANYMORE WITH JAPAN TRYING TO REINVENT ITSELF POLITICALLY AND ECONOMICALLY INCLUDING PARLIAMENT'S PASSAGE OF SWEEPING ELECTORAL REFORM OVER THE WEEKEND EVERYONE IS VYING TO BE KNOWN AS THE PERSON WHO CAME UP WITH THE SLOGAN FOR THE NEW JAPAN CONSIDER THIS JAPAN THE NORMAL NATION THAT IS THE ENTRY BY POLITICAL BOSS ICHIRO OZAWA WHAT DOES IT MEAN TO MR OZAWA NORMAL NATIONS EAGERLY HELPED THE US STOMP IRAQ PACIFIST JAPAN DIDN'T NORMAL NATIONS CONSIDER WORLD INTERESTS SUCH AS FREE TRADE JAPAN DOESN'T JAPAN IS A SINGLELUNG COUNTRY MR OZAWA WRITES JAPAN IS FAR FROM A NORMAL COUNTRY SOME BRAND MR OZAWA'S CALL FOR NORMALCY DANGEROUS OTHERS FIND IT FUNNY WHICH NATION DOES HE THINK IS NORMAL SOMALIA IRAQ CRACKS BEAT TAKESHI AN ACTOR/COMEDIAN TURNED POLITICAL CRITIC IN A RECENT MAGAZINE ARTICLE THE JAPANESE OF COURSE AREN'T ALONE IN CONJURING UP HOKEY POLITICAL MANTRAS GERALD FORD TRIED TO CRAFT ECONOMIC POLICY AROUND HIS WHIP INFLATION NOW CAMPAIGN CHINA IS PRECARIOUSLY BALANCING COMMUNISM AND CAPITALISM WITH ITS ONE NATION TWO SYSTEMS SAYING SLOGANS HAVE ALWAYS BEEN POPULAR HERE WHEN JAPAN BEGAN TO MODERNIZE MORE THAN A CENTURY AGO IT TURNED TO INSPIRATIONAL MAXIMS TO DEFINE ITS PATH REVERE THE EMPEROR EXPEL THE BARBARIANS IE FOREIGNERS WAS A POPULAR RALLYING CRY IN THE MID19TH CENTURY IT WAS SUPERSEDED BY THE MORE PHLEGMATIC WESTERN LEARNING JAPANESE SPIRIT THE SLOGANEERING REACHED A PEAK OF SORTS IN THE 1930S WHEN THE JAPANESE MILITARY RAVAGED ASIA UNDER THE BANNER OF COEXISTENCE COPROSPERITY A GENERATION OF HOLLYWOOD WAR MOVIES TELEGRAPHED THIS INTO THE SIMPLER BANZAI SHORTLY AFTER THE WAR A CHASTENED NATION ADOPTED MOTTOES THAT SET ITS BASIC COURSE CATCH UP AND SURPASS THE WEST AND DOUBLE YOUR INCOME THE BASIC POINT JAPAN WOULD FOCUS ON ECONOMIC DEVELOPMENT AT HOME AND LEAVE MESSY FOREIGNPOLICY MATTERS TO UNCLE SAM LACKING A BETTER IDEA THE NATION'S LEADERS TRIED TO TWEAK THAT BASIC NOTION INTO THE 1980S THE HOMETOWN CONCEPT TO WARD A HUMANISTIC AND PROSPEROUS JAPAN WAS ONE PRIME MINISTER'S VISION AN IMPASSIONED PLEA FOR A MORE GEOGRAPHICALLY BALANCED PORK BARREL IN THE EARLY 1990S ANOTHER PREMIER OFFERED THE LIFESTYLE SUPERPOWER MANIFESTO THAT FORMULA HOWEVER DOESN'T WORK ANYMORE THE ECONOMY HAS MATURED THE PEOPLE WANT MORE OUT OF LIFE AND THE WORLD ESPECIALLY THE US WILL NO LONGER TOLERATE JAPANESE FREERIDING JAPAN NO LONGER HAS A WORKING SLOGAN AND THAT SOME SAY IS A CRISIS THE HYPERBOLE IS FLYING JAPAN A NATION LACKING A PHILOSOPHY COULD FACE A DOWNFALL COMPARABLE TO THE ECLIPSE OF THE ANCIENT CITY OF CARTHAGE YASUHIKO SHIBATA A SENIOR FELLOW AT THE YOMIURI RESEARCH INSTITUTE WARNS IN AN ESSAY THE SPECIALINTEREST GROUPS NOT SURPRISINGLY ARE TRYING TO FILL THE VISION VACUUM AIR SUN WATER RICE DECLARES A BANNER HANGING FROM THE HEADQUARTERS OF JAPAN'S AGRICULTURAL LOBBY WHICH RECENTLY LOST THE FIGHT TO KEEP JAPAN'S IMPORT BAN ON RICE KEIDANREN THE BIG BUSINESS LOBBY ENDORSES SYMBIOSIS A GENTLER VERSION OF COEXISTENCE/COPROSPERITY WITH THE WORLD BUT NOW THE MAINSTREAM POLITICIANS ARE COMING TO THE RHETORICAL FORE A RECENT ISSUE OF VIEWS MAGAZINE PUT IT BEST FOR THIS FADMAD NATION DECLARING 1994 THE YEAR OF THE BOOM IN TREATISES OF NATIONAL IDENTITY THAT GRATES ON SERIOUS POLITICAL JOURNALISTS THE JAPANESE ARE DESPERATE IN THE NEED TO SEARCH FOR AN IDENTITY SAYS MASAHIKO ISHIZUKA AN EDITORIAL WRITER AT THE TOKYO DAILY NIHON KEIZAI SHIMBUN BUT IT'S VERY DIFFICULT AND DANGEROUS TO DESCRIBE THE COUNTRY IN THAT KIND OF ABSTRACT MOODY WAY I'M NOT FOR ANY SLOGAN THE NATION'S FUTURE IS TOO COMPLICATED A MATTER TO BE DESCRIBED THAT WAY KIICHI MIYAZAWA THE LAST LEADER OF JAPAN'S POSTWAR OLDSTYLE GOVERNMENT WHO WAS DEPOSED BY THE NEW WAVE LAST YEAR SAYS THE COMPETITION TERRIFIES HIM SURE JAPAN HAS HAD SLOGANS BEFORE BUT THIS OPEN COMPETITION BETWEEN INDIVIDUAL POLS IS UNSEEMLY IN A NATION OF SELFEFFACE MENT THIS IS NOT THE JAPAN AS I KNOW IT HE SAYS IT'S AS THOUGH THEY ARE FROM OTHER COUNTRIES THOSE SENTIMENTS ARE NOT STOPPING THE SUGGESTIONS HOW ABOUT A SMALL BUT SHINING NATION THAT'S THE TITLE OF A BOOK RELEASED LAST WEEK BY CABINET SPOKESMAN MASAYOSHI TAKEMURA LET'S GIVE UP THE AUDACIOUS IDEA THAT JAPAN WILL BECOME THE SUN OF THE WORLD HE WRITES AND BECOME A STAR THAT TWINKLES IN THE NIGHT SKY OF THE WORLD PRIME MINISTER MORIHIRO HOSOKAWA FOR HIS PART INVOKES A JAPANESE IDIOM THAT TRANSLATES ROUGHLY INTO EITHER A COUNTRY OF QUALITY AND SUBSTANCE OR A COUNTRY OF UNPRETENTIOUS EXCELLENCE THAT MEANS WE SHOULD GET RID OF FRILLS AS MUCH AS POSSIBLE WITH A CULTURAL LIFESTYLE AND BEAUTIFUL NATURE ACCORDING TO THE VIEWS SUMMARY BUT PERHAPS THE IDEAS OF FORMER FINANCE MINISTER RYUTARO HASHIMOTO MEASURE UP BEST HE HAS TAKEN HIS VISION TO BOOK LENGTH IN A VOLUME TITLED VISION OF JAPAN JAPAN'S ACTIONS SHOULD BE PROPORTIONATE TO ITS HEIGHT HE DECLARES IN OTHER WORDS THERE ARE SOME THINGS JAPAN CAN'T DO WELL AND OTHERS IT CAN TALL PEOPLE ARE GOOD AT CLEANING CHIMNEYS HE EXPLAINS IN AN INTERVIEW BUT SHORTER PEOPLE ARE BETTER AT CLEANING SEWERS 9401310034 940131 BUSINESS BRIEF ETHYL CORP QUARTERLY PROFIT FELL 91 EFFECTS OF SPINOFFS BLAMED ETHYL CORP SAID FOURTHQUARTER NET INCOME SLUMPED 91 MAINLY BECAUSE OF THE EFFECTS OF SPINNING OFF INSURANCE BUSINESSES THE RICHMOND VA COMPANY SAID OPERATING EARNINGS FROM CONTINUING OPERATIONS ROSE 43 AMID IMPROVED RESULTS IN ITS CHEMICALS AND PETROLEUM ADDITIVES BUSINESSES FOURTHQUARTER NET INCOME FELL TO 79 MILLION OR SEVEN CENTS A SHARE FROM 834 MILLION OR 70 CENTS A SHARE THE 1993 QUARTER INCLUDED A 10 MILLION CHARGE FOR DOWNSIZING OPERATIONS AND RETIREMENT OF DEBT THE YEAREARLIER QUARTER INCLUDED 42 MILLION IN OPERATING EARNINGS FROM DISCONTINUED INSURANCE BUSINESSES AND A GAIN OF 242 MILLION OR 20 CENTS A SHARE ON THE SALE OF A 20 INVESTMENT IN FIRST COLONY CORP A LIFE INSURER SPUN OFF IN 1993 9401310033 940131 INTERNATIONAL BRIEF PORSCHE AG FIRM SAYS CAPITAL INCREASE IS APPROVED BY SHAREHOLDERS PORSCHE AG SAID SHAREHOLDERS APPROVED A CAPITAL INCREASE THAT BASED ON ITS RECENT SHARE PRICE COULD RAISE ABOUT 2688 MILLION MARKS 1553 MILLION FOR THE GERMAN CAR MAKER AT A GENERAL SHAREHOLDERS MEETING PORSCHE CHAIRMAN WENDELIN WIEDEKING ALSO REPORTED THAT GROUP SALES FOR THE FISCAL FIRST HALF THAT BEGAN AUG 1 WERE UP 10 TO ABOUT 920 MILLION MARKS BUT THE CHAIRMAN SAID THE 10 INCREASE WILL BY NO MEANS BE MATCHED BY AN INCREASE IN PROFIT PORSCHE BASED IN STUTTGART REPORTED THIS MONTH THAT THE SIXMONTH LOSS WAS 115 MILLION MARKS NARROWER THAN THE YEAREARLIER PERIOD'S 120 MILLION MARK LOSS MR WIEDEKING REPEATED THE PROGNOSIS FOR A 140 MILLIONMARK TO 150 MILLIONMARK LOSS IN THE CURRENT YEAR ON SALES OF OVER TWO BILLION MARKS HE SAID THE COMPANY SHOULD RETURN TO PROFIT NEXT YEAR 9401310032 940131 WHAT'S NEWS BUSINESS & FINANCE BANKAMERICA OFFERED TO BUY CONTINENTAL BANK FOR 19 BILLION A DEAL THAT SUGGESTS A SHIFT IN CORPORATE BANKING FROM A FOCUS ON LENDING TO A WIDE RANGE OF TECHNOLOGYBASED SERVICES BANKAMERICA IS SEEKING CONTINENTAL'S 2000 CORPORATE CUSTOMERS AS IT TRIES TO FASHION AN EXPANDED BANKING RELATIONSHIP IN WHICH THE BANK PERFORMS DOZENS OF ELECTRONIC FINANCIAL FUNCTIONS FOR CORPORATIONS ECONOMIC GROWTH SHOT UP AT AN ANNUAL RATE OF 59 IN THE FOURTH QUARTER OF 1993 WHILE INFLATION STAYED WELL IN CHECK THE EXTREMELY STRONG PERFORMANCE HAS BOOSTED ANALYSTS' EXPECTATIONS ABOUT THE FIRST HALF OF THIS YEAR THE DOW JONES INDUSTRIALS ROSE 1913 TO 394543 ITS SECOND HIGH IN A ROW AFTER THE UPBEAT ECONOMIC NEWS AN ACCORD TO CUT GLOBAL ALUMINUM OUTPUT BY UP TO TWO MILLION METRIC TONS WAS SET BY MAJOR PRODUCING NATIONS MOSCOW COMMITTED TO CURBING ITS ANNUAL OUTPUT BY 500000 TONS WHILE THE US AND EU AGREED NOT TO TAKE TRADE ACTIONS AGAINST RUSSIAN PRODUCERS AUTO MAKERS WILL LIKELY PHASE OUT CASHBACK REBATES AS A MARKETING TOOL THIS YEAR INDUSTRY EXECUTIVES AND DEALERS SAY AS DEMAND RISES AND LEASING PROMOTIONS GROW MORE POPULAR AETNA PLANS TO TAKE A 128 BILLION FOURTHQUARTER CHARGE FOR A RESTRUCTURING PLAN WHICH CALLS FOR CUTTING 4000 JOBS OR NEARLY 10 OF ITS FORCE SAUDI ARABIA AGREED TO RESTRUCTURE 92 BILLION IN PAYMENTS TO FIVE MAJOR US DEFENSE CONTRACTORS CLEARING THE WAY FOR A MAJOR AIRCRAFT PURCHASE GE'S FINANCE ARM AND FINANCIER GEORGE SOROS ARE JOINTLY FORMING A MULTIBILLIONDOLLAR FUND TO DEVELOP POWER FACILITIES IN EMERGING NATIONS TOKYO STOCKS SOARED 5 MONDAY TO CLOSE THE MORNING SESSION AT 1972257 UP 96469 AS INVESTORS REACTED TO HOSOKAWA'S VICTORY FOR POLITICAL REFORM CONTINENTAL AIRLINES IS EXPECTED TO EXPAND ITS LOWFARE CALITE SERVICE TO ABOUT 875 DAILY FLIGHTS FROM 300 QVC'S BOARD PLANS TO MEET TO DECIDE WHAT STEPS IT SHOULD TAKE BEFORE TOMORROW'S DEADLINE IN THE PARAMOUNT BIDDING WAR AFTER ALREADY HAVING ARRANGED TO OBTAIN EXTRA FINANCING JAPAN RAISED THE IDEA OF JOINING SEMATECH THE US TECHNOLOGY CONSORTIUM FORMED IN THE 1980S TO COUNTER JAPAN'S DOMINANCE IN COMPUTER CHIPS SHORT INTEREST ON THE NASDAQ STOCK MARKET JUMPED 15 IN MIDJANUARY TO THE 12TH CONSECUTIVE MONTHLY RECORD INVESTORS WON'T HAVE ANY SAY IN SETTING THE RESIDUAL VALUE OF THEIR PRUDENTIAL SECURITIES LIMITED PARTNERSHIPS WHEN TRYING TO TAP INTO A REPARATIONS FUND SET UP BY THE BROKERAGE FIRM TOP SPECTRUM OFFICIALS SOLD MOST OF THEIR STOCK SHORTLY AFTER HIRING JOHN SCULLEY AS CHAIRMAN IN MIDOCTOBER SAVING THEMSELVES FROM A BIG DROP IN THE STOCK THAT OCCURRED AFTER AN SEC PROBE BECAME KNOWN LAST WEEK MOBIL SAID LUCIO NOTO WILL TAKE THE CHIEF EXECUTIVE'S POST WHEN ALLEN MURRAY RETIRES AT THE END OF FEBRUARY TEXAS INSTRUMENTS REPORTED A 72 JUMP IN FOURTHQUARTER EARNINGS AMID A CONTINUING SURGE IN ITS SEMICONDUCTOR BUSINESS BUT SAID IT WILL ELIMINATE 700 JOBS IN OTHER OPERATIONS RH MACY SAID IT WILL CUT STAFF AT ITS SAN FRANCISCOBASED MACY'S WEST UNIT BY 700 POSITIONS OR ABOUT 35 BONDS LEHMAN BROTHERS TREASURY INDEX 565603 UP 2926 COMMODITIES OIL 1534 A BARREL OFF 8 CENTS DOW JONES FUTURES INDEX 14156 UP 005 SPOT INDEX 12957 OFF 014 DOLLAR 11000 YEN UP 145 17425 MARKS UP 0013 9401310031 940131 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FILMMAKERS FROM EUROPEAN UNION COUNTRIES URGED A TRANSITIONAL PERIOD OF GRADUALLY LOWERED SUBSIDIES THAT SHIELD THEM FROM HOLLYWOOD COMPETITION THE APPEAL IN A BRUSSELS CONFERENCE LAST WEEK ON FILMMAKING IN EUROPE CAME AS THE EU'S TOP CULTURAL OFFICIAL SAID THE MOVIE MAKERS SHOULD TAKE A MORE COMMERCIAL APPROACH IF THEY WANT TO COMPETE WITH THE US INDUSTRY AND ITS BLOCKBUSTER MOVIES SOME FILMMAKERS CONDEMNED THE SUBSIDIES SAYING THEY FOSTERED LOWRISK APPROACHES AND MEDIOCRE PRODUCTS THAT CHEATED AUDIENCES EUROPEAN FILM PRODUCERS SEEM TO FIND IT DIFFICULT TO RECONCILE ART AND MONEY SAID THE CULTURAL CHIEF EU COMMISSIONER JOAO DE DEUS PINHEIRO AUDIOVISUAL PRODUCTS WERE EXEMPTED FROM THE WORLD TRADELIBERALIZATION ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO THE DISMAY OF HOLLYWOOD THE CONFERENCE CAME AS THE EU PREPARES A POLICY ON THE FILM AND TV SECTORS WHICH HAVE GOVERNMENT HELP AND PROTECTIONA SOURCE OF CONFLICT WITH THE US TAIWAN UNVEILED PLANS TO RELAX CONTROL OF THE TELEVISION SECTOR BY ALLOWING A PRIVATE NETWORK THROUGH COMPETITIVE BIDDING THE GOVERNMENT ALSO WILL RELEASE 29 FM RADIO CHANNELS IN ADDITION TO 13 IT LICENSED LAST MONTH THE MOVES TO FREE BROADCASTING ARE IN LINE WITH PRESIDENT LEE TENGHUI'S DRIVE TO BROADEN DEMOCRACY IN TAIWAN THEY RESPOND TO COMPLAINTS BY THE POLITICAL OPPOSITION THAT IT IS DENIED ACCESS TO THE AIRWAVES THE NEW TV STATION MAY START OPERATING IN 1996 TAIWAN HAS THREE TV NETWORKS ONE EACH RUN BY THE RULING NATIONALIST PARTY THE TAIWAN PROVINCIAL GOVERNMENT AND THE MILITARY CRIME IN MOSCOW INCREASED AT A SLOWER PACE LAST YEAR BUT THE NUMBER OF VIOLENT CRIMES IN THE RUSSIAN CAPITAL GREW SIGNIFICANTLY NEWS AGENCIES IN THE REPUBLIC SAID REPORTED CRIMES INCREASED 4 TO 82556 FROM A YEAR EARLIER WHEN THE ANNUAL GROWTH PACE WAS FIVE TIMES GREATER BUT THE NUMBER OF MURDERS SOARED 53 AND ROBBERIES JUMPED 30 POLICE NOTED DECLINES IN PROPERTY THEFTS AND A SLOWING OF ILLICIT DRUG AND WEAPONS TRAFFICKING IN WHAT WOULD BE COLOMBIA'S BIGGEST PRIVATIZATION THE GOVERNMENT PLANS TO SELL ITS SHARE OF A COMPANY THAT RUNS THE WORLD'S LARGEST OPENPIT COAL MINE COLOMBIA HOPES TO RAISE MORE THAN 1 BILLION FOR ITS 50 STAKE IN CARBONES DE COLOMBIA KNOWN AS CARBOCOL THE OTHER 50 IS OWNED BY THE INTERCOR AFFILIATE OF EXXON CORP A US ENERGY COMPANY COLOMBIA MENTIONED EXXON AS A POTENTIAL BUYER FOR THE STAKE BUT SAID OTHER COMPANIES WORLDWIDE HAVE EXPRESSED INTEREST IN A TIFF OVER POWER THE EUROPEAN UNION COMMISSION AND NATIONAL GOVERNMENTS ARE WRESTLING OVER WHO SHOULD SIGN THE LIBERALIZED WORLDTRADE ACCORD IN APRIL THE ARGUMENT INVOLVES EU CONTROL IN MATTERS AT THE NEW WORLD TRADE ORGANIZATION TO REPLACE THE GENERAL AGREEMENT ON TARIFFS AND TRADE ONE EU FACTION FAVORS THE COMMISSION WHICH REPRESENTS THE 12 MEMBERS OF THE FORMER EUROPEAN COMMUNITY ON BROAD ISSUES SUCH AS TARIFFS MOST OF THE EU STATES ALL ARE ALSO GATT MEMBERS WITH APPROVAL AUTHORITY WANT CONTINUED SHARED RESPONSIBILITY BUT THE EU CHARTER DOESN'T COVER SOME WTO ISSUES SUCH AS THE ENVIRONMENT AND TRADE IN SERVICES STEFAN KAWALEC A TOP OFFICIAL AT POLAND'S FINANCE MINISTRY WAS FIRED FRIDAY APPARENTLY FOR HIS ROLE IN UNDERPRICING THE PUBLIC OFFERING OF A STATE BANK WHILE THE GOVERNMENT PRESS OFFICE DIDN'T SPECIFY REASONS FOR THE DISMISSAL MR KAWALEC HAD BEEN CRITICIZED LAST WEEK FOR SETTING THE ISSUE PRICE OF BANK SLASKI SA SHARES TOO LOW ESSENTIALLY SHORTING THE STATE TREASURY OF NEARLY 598 MILLION IN DECEMBER THE ISSUE PRICE OF THE SHARES WAS SET AT ABOUT 23 AT THEIR STOCK MARKET DEBUT LAST TUESDAY THE PRICE REACHED 310 BUSINESS AND INDUSTRY IN BRAZIL ARE AMONG THE MOST HIGHLY TAXED IN THE WORLD INHIBITING ECONOMIC GROWTH AND EFFICIENCY A SURVEY BY AN AUDITING FIRM FOUND THE EXCESSIVE LEVIES ON PRODUCERS HURT PRODUCTIVITY ERNST & YOUNG SAID FOR EXAMPLE BRAZILIAN PRODUCERS PAY 46 IN TAXES ON CARS COMPARED WITH 83 IN THE US 45 IN JAPAN AND 19 IN FRANCE THE COUNTRY ALSO LED IN OTHER CATEGORIES GLOBALLY WITH OUTPUT LEVIES OF 41 ON TELEVISION SETS 21 EACH ON ORANGE JUICE AND SHOES AND 25 ON CEMENT BRAZIL'S CONGRESS LAST WEEK PASSED NEW TAXES TO HELP REDUCE A 22 BILLION BUDGET DEFICIT BECAUSE TAX DODGING IS A BIG PROBLEM IN BRAZIL THE STUDY'S AUTHORS SAID THE GOVERNMENT SHOULD CRACK DOWN ON TAX CHEATS AND WIDEN THE TAX BASE RATHER THAN COLLECT MORE TAX REVENUE FROM THOSE ALREADY PAYING THEIR LEGITIMATE SHARE COAL MINERS IN ROMANIA ENDED A WEEKLONG STRIKE OVER BACK PAY COMPLYING WITH A FRIDAY COURT ORDER TO RETURN TO WORK FOR AT LEAST 30 DAYS AFTER WHICH UNIONS VOWED TO RESUME THE WALKOUT THAT THREATENED ELECTRICITY SUPPLIES FROM COALFIRED PLANTS ABOUT 1000 GOVERNMENTAPPROVED VIDEO SHOPS OPENED IN IRAN LAST WEEK THE FIRST LEGAL RENTAL SERVICE SINCE VIDEO RECORDINGS WERE BANNED SOON AFTER THE 1979 ISLAMIC REVOLUTION VIDEOS ARE SCREENED FOR ISLAMIC MORAL VIOLATIONS SUCH AS DISPLAYS OF PHYSICAL CONTACT BETWEEN MEN AND WOMEN 9401310030 940131 PHARMOR COFOUNDER GETS A DELAY IN START OF TRIAL CLEVELAND THE FEDERAL TRIAL OF PHARMOR INC COFOUNDER AND FORMER PRESIDENT MICHAEL I MONUS HAS BEEN CONTINUED AT HIS REQUEST SAID JAMES V MORONEY ASSISTANT US ATTORNEY THE TRIAL WAS SCHEDULED TO START FEB 14 IN FEDERAL COURT IN CLEVELAND MR MONUS PETITIONED TO PUT OFF THE TRIAL CITING DIFFICULTIES GETTING ACCESS TO PHARMOR RECORDS AND WITNESSES AND TIME NEEDED TO REVIEW THE RECENT RELEASE OF A REPORT WRITTEN BY A COURTAPPOINTED EXAMINER DESPITE OPPOSITION FROM THE US ATTORNEY'S OFFICE JUDGE GEORGE WHITE GRANTED MR MONUS'S MOTION AND SAID HE WILL SET A NEW TRIAL DATE AT A MARCH 2 HEARING PROSECUTORS EXPECT THE TRIAL TO BEGIN IN LATE MARCH OR EARLY APRIL MR MONUS WAS INDICTED ON 129 FEDERAL COUNTS FOR AN ALLEGED 500 MILLION FRAUD OF THE DEEPDISCOUNT RETAILER AND FOR EMBEZZLING 15 MILLION FROM THE COMPANY PHARMOR BASED IN YOUNGSTOWN OHIO FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN AUGUST 1992 TWO OTHER FORMER PHARMOR EXECUTIVES HAVE PLEADED GUILTY TO FEDERAL CHARGES AND ARE COOPERATING WITH THE US ATTORNEY 9401310029 940131 FMC CORP COMPLETES FORMATION OF VENTURE WITH HARSCO CORP CHICAGO FMC CORP AND HARSCO CORP COMPLETED THE FORMATION OF A JOINT VENTURE WHICH COMBINES THEIR DEFENSE OPERATIONS THE VENTURE KNOWN AS UNITED DEFENSE LP EXPECTS TO RECORD 1994 SALES OF ABOUT 1 BILLION FMC WHICH RECEIVED A 60 STAKE IN EXCHANGE FOR ITS DEFENSE SYSTEMS GROUP WILL MANAGE THE OPERATION HARSCO BASED IN HARRISBURG PA CONTRIBUTED ITS BMY COMBAT SYSTEMS DIVISION FOR A 40 HOLDING UNITED DEFENSE WITH ABOUT 6000 EMPLOYEES IS BASED IN ARLINGTON VA THE COMPANIES INITIALLY AGREED TO THE COMBINATION THE LATEST IN A SERIES OF CONSOLIDATION MOVES IN THE DEFENSE INDUS TRY IN DECEMBER 1992 COMBINING FMC'S TECHNICAL AND SYS TEMS CAPABILITIES WITH THE HARSCO UNIT'S LOWCOST AND FLEXIBLE MANUFACTURING ABILITY FMC SAID WILL ALLOW BOTH COMPANIES TO MAINTAIN PROFITABLE OPERATIONS IN THE SHRINKING DEFENSE MARKET UNITED DEFENSE WILL MANUFACTURE SUCH EQUIPMENT AS THE BRADLEY FIGHTING VEHICLE THE M109 PALADIN SELFPROPELLED HOWITZER AN ARMORED COMBAT EARTHMOVER AND OTHER ARMORED VEHICLES OTHER PRODUCTS INCLUDE NAVAL GUNS AND LAUNCHING SYSTEMS FMC ALSO HAS INTERESTS IN CHEMICALS PRECIOUS METALS AND MACHINERY HARSCO RETAINED ITS MUCHLARGER DIVISION THAT MAKES TRUCKS FOR THE US ARMY ALONG WITH OTHER DIVERSIFIED MANUFACTURING OPERATIONS 9401310028 940131 BUSINESS BRIEF PLACER DOME CANADA LTD COMPANY PLANS EXPANSION OF TWO CANADA GOLD MINES PLACER DOME CANADA LTD SAID IT APPROVED PLANS TO EXPAND TWO OF ITS ONTARIO GOLD MINES AT A COST OF ABOUT 160 MILLION CANADIAN DOLLARS US1208 MILLION PLACER A VANCOUVER BRITISH COLUMBIABASED GOLDMINING CONCERN SAID IT WILL EXPAND ITS OPENPIT MINING OPERATIONS AT THE DOME MINE IN TIMMINS ONTARIO TO INCREASE ANNUAL GOLD PRODUCTION ABOUT 68 TO 315000 OUNCES FROM THE CURRENT 187000 OUNCES THE C150 MILLION EXPANSION IS TO CUT CASH PRODUCTION COSTS TO ABOUT US210 AN OUNCE FROM US227 IN 1993 CONSTRUCTION IS EXPECTED TO BEGIN IN APRIL PLACER ALSO PLANS TO INSTALL AN UNDERGROUND CONVEYOR AND CRUSHING SYSTEM AT THE DETOUR LAKE MINE 185 MILES NORTH OF TIMMINS FOR C10 MILLION THE SYSTEM WILL ALLOW FURTHER ACCESS TO ORE AND EXTEND THE MINE'S LIFE TO THE YEAR 2000 AND POSSIBLY BEYOND AVERAGE CASH PRODUCTION COSTS WILL BE CUT TO 240 AN OUNCE FROM 250 IN 1993 ON COMPLETION OF THE NINEMONTH PROJECT 9401310027 940131 BUSINESS BRIEF CANADIAN PACIFIC FOREST PRODUCT LTD NEW COMPANY IS CREATED FROM THE PAPERBOARD GROUP CANADIAN PACIFIC FOREST PRODUCTS LTD MONTREAL SAID IT FORMED A COMPANY FROM ITS PAPERBOARD GROUP AND MAY ISSUE STOCK IN THE UNIT IF WORKERS AGREE TO COSTCUTTING MEASURES NEEDED TO ATTRACT CAPITAL THE NEW COMPANY ST LAURENT PAPERBOARD INC WILL OPERATE FACILITIES IN QUEBEC AND ONTARIO WITH 1400 EMPLOYEES AND ANNUAL SALES OF ABOUT 308 MILLION CANADIAN DOLLARS US2343 MILLION CP FOREST'S PAPERBOARD GROUP HAD AN OPERATING LOSS OF C11 MILLION LAST YEAR BUT RECENT PRICE INCREASES FOR LINERBOARD USED IN CORRUGATED BOXES HAVE IMPROVED THE OUTLOOK SEPARATELY CP FOREST SAID IT HAD A LOSS OF C2856 MILLION OR C488 A SHARE IN 1993 COMPARED WITH A LOSS OF C248 MILLION OR C482 A SHARE IN 1992 SALES WERE FLAT AT C183 BILLION DAVID TOOLE CHIEF FINANCIAL OFFICER SAID THE COMPANY EXPECTS A MUCH NARROWER LOSS IN 1994 9401310026 940131 WORLD MARKETS TOKYO STOCKS SOAR 5 IN EARLY MONDAY TRADING AS INVESTORS ENDORSE POLITICALREFORM VICTORY A WALL STREET JOURNAL NEWS ROUNDUP JAPANESE STOCKS ROCKETED 5 IN MORNING TRADING MONDAY IN TOKYO AS INVESTORS GAVE A BIG VOTE OF CONFIDENCE TO JAPAN'S GOVERNMENT AFTER ITS WEEKEND POLITICAL REFORM VICTORY THE NIKKEI STOCK AVERAGE STOOD AT 1972257 UP 96469 POINTS AT THE END OF THE MORNING SESSION MANY STOCKS WERE DELAYED IN OPENING BECAUSE THE MARKET WAS SWAMPED WITH BUY ORDERS AS IN RECENT SESSIONS FOREIGN BUYING LED THE MARKET TRADERS SAID JAPANESE FINANCIAL INSTITUTIONS AND RETAIL INVESTORS WERE ALSO BUYING THEY SAID AND JAPANESE BROKERAGE HOUSES WERE LOADING UP ON STOCKS IN ANTICIPATION OF SELLING EVEN MORE SHARES TO THEIR CLIENTS THERE HAD BEEN DOUBTS LAST WEEK THAT JAPAN'S RULERS COULD COBBLE A REFORM BILL THAT WOULD PASS THE NATIONAL PARLIAMENT AND THOSE DOUBTS HAD PROVED A DRAG ON THE NIKKEI INDEX WHICH HAS HAD A STRONG 1994 SO FAR WITH POLITICAL REFORM PROVISIONALLY PASSED THE GOVERNMENT IS EXPECTED TO DRAFT AN ECONOMIC STIMULUS PACKAGE ESTIMATED AT MORE THAN 120 BILLION LATER THIS WEEK INVESTORS HOPE THE PACKAGE WILL PULL JAPAN OUT OF ITS NAGGING ECONOMIC DOWNTURN ON FRIDAY TOKYO STOCKS ENDED BROADLY LOWER FOR THE SECOND CONSECUTIVE SESSION WITH THE NIKKEI 225STOCK INDEX WHICH SANK 24642 POINTS THURSDAY DROPPING 13391 TO 1875788 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 250 MILLION SHARES DOWN FROM 4311 MILLION SHARES A DAY EARLIER DECLINERS FAR OUTNUMBERED GAINERS 718262 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 1382 POINTS THURSDAY FELL 868 TO 152782 THE DECLINES FOLLOWED THE FAILURE THURSDAY NIGHT OF A JOINT JAPANESE PARLIAMENTARY COMMITTEE TO COMPROMISE AND RESCUE PROPOSALS FOR POLITICAL REFORM BEFORE THE SATURDAY DEADLINE THE IMPASSE HAS HELD UP STIMULUS MEASURES LATE FRIDAY POLITICIANS REACHED A COMPROMISE ON THE REFORM PACKAGE IT WILL COME UP FOR A VOTE IN PARLIAMENT'S NEXT SESSION WHICH BEGINS MONDAY THE NIKKEI ON FRIDAY HIT ITS INTRADAY LOW ON ARBITRAGELINKED SELLING BUT RECOUPED SOME LOSSES AS INVESTORS SOUGHT BARGAINS THOUGH OVERSEAS INVESTORS REMAINED NET BUYERS THEY WERE LESS ENTHUSIASTIC BECAUSE OF THE POLITICAL UNCERTAINTY LONDON SHARES FOLLOWING A DISASTROUS OPENING RECOVERED TO POST GAINS FRIDAY IN REACTION TO POSITIVE US ECONOMIC DATA WHICH BOOSTED PARIS STOCKS 14 AND SENT MADRID AND STOCKHOLM EQUITIES TO NEW HIGHS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11513 DOWN 032 REFLECTING AN INCREASE IN MARKETS IN THE AMERICAS AND DROPS IN EUROPEAN AND ASIA/PACIFIC MARKETS HEALTHCARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15794 UP 317 OR 21 WITH HOSPITAL CORP OF AMERICA OF THE US POSTING A 33 GAIN IN ITS LOCAL CURRENCY FOOD RETAIL AND WHOLESALE STOCKS TRAILED AT 10785 DOWN 244 OR 22 WITH J SAINSBURY PLC OF THE UK SLIDING 11 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 201 POINTS TO 34474 REBOUNDING FROM THE SESSION'S LOW OF 34033 THE FT 30STOCK INDEX ROSE 126 POINTS TO 26399 VOLUME WAS A STRONG 114 BILLION SHARES UP FROM 9726 MILLION SHARES A DAY EARLIER SHORTLY AFTER THE OPENING THE FT 100 PLUNGED PARTLY ON SELLING OF SUPERMARKET RETAILERS FOLLOWING A DISAPPOINTING FINANCIAL REPORT THE LATE RALLY WAS SPARKED BY STRONGERTHANEXPECTED US GROWTH FIGURES FOR LAST YEAR'S FOURTH QUARTER AND BY A US INFLATION MEASURE THAT HIT A 27YEAR LOW THE DATA IGNITED RALLIES IN US STOCKS AND BONDS AND DANGLED THE PROMISE OF A SIMILAR BULL RUN FOR THE LONDON BOURSE WHERE INVESTORS HAVE BEEN WORRIED ABOUT CORPORATE EARNINGS INFLATION AND INTEREST RATES IN FRANKFURT PRICES CLOSED MOSTLY HIGHER WITH THE DAX 30STOCK INDEX RISING 833 POINTS TO 213347 MARKING A 28 GAIN FOR LAST WEEK'S NERVOUS VOLATILE TRADING THE FIRST OVERALL WEEKLY RISE THIS YEAR THOUGH FOREIGN INVESTORS HAVE BEEN CAUTIOUS ABOUT GERMAN EQUITIES RECENTLY ANALYSTS SAID HIGH LIQUIDITY OF GERMAN PRIVATE AND INSTITUTIONAL INVESTORS AS WELL AS CONTINUING HOPES FOR INTERESTRATE EASINGS WILL CONTINUE TO SUPPORT SHARE PRICES IN PARIS STOCKS JUMPED AS INVESTORS WERE ENTHUSIASTIC ABOUT LAST YEAR'S STRONG US ECONOMIC GROWTH WITH REINEDIN INFLATION AS THE FRENCH AND OTHER EUROPEAN ECONOMIES HAVE BEEN DRAGGED DOWN BY GERMANY'S RECESSIONARY WOES AND FRANCE HAS BEEN STRUGGLING WITH HIGH INTEREST RATES THE PARIS STOCK MARKET TROLLS FOR GOOD NEWS IN THE US A FRENCH EXPORT MARKET AND MAJOR SOURCE OF EARNINGS FOR MANY FRENCH COMPANIES WITH BIG US UNITS IN AMSTERDAM AFTER A MIXED TO LOWER START STOCKS STAGED A LATE RALLY TO END HIGHER BUOYED BY ADVANCES IN OTHER MARKETS INCLUDING WALL STREET'S STRONG OPENING POSITIVE DUTCH TRADE DATA DIDN'T INFLUENCE THE BOURSE IN MILAN SHARES CLOSED A RECORDBREAKING WEEK WITH A BIG JUMP ON ALLTIME HIGH VOLUME PRICES OPENED LOWER ON PROFITTAKING BUT BUYERS MOVED IN ENCOURAGED BY AN IMPROVED OUTLOOK FOR ITALIAN CORPORATE PERFORMANCE PROSPECTS FOR LOWER INTEREST RATES COMING ITALIAN PRIVATIZATIONS AND A LIQUIDITY INJECTION FROM MUTUAL FUNDS IN MADRID PRICES SOARED TO A RECORD AS FEVERISH BUYING BROKE OUT IN RESPONSE TO THE FAVORABLE US ECONOMIC GROWTH FIGURES AND IN STOCKHOLM SHARES ROSE TO A RECORD FINISH THE SECOND IN A ROW IN HEAVY TRADING SUPPORTED BY ADVANCES IN EQUITY MARKETS ABROAD AND THE STRONG STATISTICS ON US GROSS NATIONAL PRODUCT IN ZURICH STOCKS RALLIED IN HEAVY TURNOVER WITH CHEMICAL AND BANKING ISSUES LEADING THE WAY UP THE BANKING SECTOR GAINED ON A REPORT THAT THIS MONTH'S SWISS INFLATION RATE SLOWED FROM THE DECEMBER PACE AND THE BROADER MARKET WAS BUOYED BY STRONG US AND EUROPEAN STOCK MARKETS IN BRUSSELS SHARES ENDED NARROWLY MIXED AS INVESTORS CLOSED OUT POSITIONS AHEAD OF THE WEEKEND BUT THE MAIN INDEX EDGED UP TO A SECOND CONSECUTIVE RECORD FINISH IN MEXICO CITY STOCKS ROSE 11 TO A SECOND CONSECUTIVE RECORD AGAIN LED BY GROWTH AND SOLID EARNINGS PROSPECTS FOR THE TELECOMMUNICATIONS SECTOR IN SYDNEY PRICES IN MOST SECTORS GAINED GROUND BUT GOLD STOCKS AND SOME METAL AND MINERAL ISSUES FELL BECAUSE OF A WEAKER GOLD PRICE IN HONG KONG SHARES DROPPED IN AN EXTREMELY VOLATILE SESSION THAT TOOK PRICES ACROSS A WIDE RANGE ON THE EXPIRATION DAY OF JANUARY STOCKINDEX FUTURES RUMORS THAT HONG KONG BANKS WOULD TIGHTEN THEIR MORTGAGELENDING POLICIES WEAKENED PRICES LATE IN THE SESSION IN SINGAPORE EQUITIES CLOSED HIGHER IN SLOW CAUTIOUS BUYING BUT IN KUALA LUMPUR STOCKS RALLIED 15 AFTER CHOPPY TRADING MARKED BY BOUTS OF HEAVY PROFITTAKING IN TAIPEI FOLLOWING A 3 JUMP THE PREVIOUS DAY SHARES SLIPPED FALLING FROM EARLY GAINS ON JITTERINESS ABOUT THE LARGE VOLUME OF MARGIN LOANS FOR STOCKS BOUGHT PARTLY ON CREDIT THE FALL CAME DESPITE POSITIVE ECONOMIC INDICATORS FOR TAIWAN IN MANILA EQUITIES SLUMPED 25 IN MODERATE TRADING AS PARTICIPANTS SOLD ON NEWS OF AN INCREASE IN PHILIPPINE OIL PRICES IN SEOUL PRICES CLIMBED 21 IN ACTIVE TRADING LED BY SMALLER BLUE CHIPS TO PUT THE MARKET AT ITS HIGHEST CLOSING LEVEL IN FOUR YEARS INVESTORS' DEPOSITS WITH BROKERAGE FIRMS AN INDICATOR OF THE SOUTH KOREAN BOURSE'S UPWARD POTENTIAL HAVE BEEN INCREASING BETWEEN 25 MILLION AND 62 MILLION A DAY IN RECENT SESSIONS IN WELLINGTON STOCKS FINISHED WITH A 13 GAIN DESPITE LATE PROFITTAKING 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 9401310025 940131 BUSINESS BRIEF TRANS FINANCIAL BANCORP FGC HOLDING TO BE BOUGHT IN A 17 MILLION STOCK DEAL TRANS FINANCIAL BANCORP BOWLING GREEN KY SAID IT ENTERED A DEFINITIVE AGREEMENT TO ACQUIRE FGC HOLDING CO IN A STOCK TRANSACTION VALUED AT 17 MILLION FGC HOLDERS WILL RECEIVE 41983 TRANS FINANCIAL SHARES FOR EACH FGC SHARE HELD THE 17 MILLION TRANSACTION VALUE IS BASED UPON THURSDAY'S CLOSING PRICE OF 1625 AND THE ISSUANCE OF ABOUT 1050000 NEW TRANS FINANCIAL SHARES TRANS FINANCIAL SAID IT EXPECTS THE TRANSACTION TO CONSTITUTE A TAXFREE REORGANIZATION AND TO QUALIFY FOR THE POOLINGOFINTEREST METHOD OF ACCOUNTING TRANS FINANCIAL IS A 1 BILLION BANK COMPANY AND OPERATES 37 BRANCHES IN KENTUCKY AND TENNESSEE FGC BASED IN MARTIN KY IS A 126 MILLION BANK HOLDING COMPANY FOR FIRST GUARANTY NATIONAL BANK TRANS FINANCIAL SAID IT EXPECTS TO MERGE FIRST GUARANTY INTO ITS COMMERCIAL BANK SUBSIDIARY TRANS FINANCIAL BANK UPON CLOSING OF THE TRANSACTION 9401310024 940131 MARKETING BRIEF NOTED MERGER TURNER BROADCASTING SYSTEM INC AND NEW LINE CINEMA CORP COMPLETED THE PREVIOUSLY ANNOUNCED MERGER OF NEW LINE WITH A TBS UNIT 9401310023 940131 BUSINESS BRIEF BEVERLY ENTERPRISES INC FIRM HAS QUARTERLY PROFIT AFTER LOSS A YEAR EARLIER BEVERLY ENTERPRISES INC POSTED FOURTHQUARTER NET INCOME OF 168 MILLION OR 17 CENTS A SHARE COMPARED WITH A NET LOSS OF 325 MILLION OR 44 CENTS A SHARE A YEAR EARLIER THE FORT SMITH ARK OPERATOR OF NURSING HOMES SAID REVENUE ROSE 6 TO 7369 MILLION FROM 6929 MILLION THE RESULTS WERE IN LINE WITH ANALYSTS' PROJECTIONS BEVERLY ATTRIBUTED THE IMPROVED RESULTS TO THE CONTINUING GROWTH OF ANCILLARY SERVICES INCLUDING REHABILITATION PROGRAMS INHOUSE PHARMACY OPERATIONS AND SUBACUTE CARE WHICH INVOLVES CARING FOR PATIENTS WHO ARE SICKER THAN TRADITIONAL NURSINGHOME PATIENTS BUT NO LONGER REQUIRE THE SERVICES OF AN ACUTECARE HOSPITAL A SPOKESMAN ALSO SAID THAT THE COMPANY HAD KEPT EXPENSES IN CHECK BY FURTHER CONSOLIDATING PURCHASING ACTIVITIES OF ITS FACILITIES 9401310022 940131 BUSINESS BRIEF ANADARKO PETROLEUM CORP CAPITAL SPENDING THIS YEAR TO RISE 40 TO 370 MILLION ANADARKO PETROLEUM CORP HOUSTON SAID IT WILL BOOST CAPITAL SPENDING ABOUT 40 IN 1994 TO 370 MILLION FROM 1993 CAPITAL EXPENDITURES OF 2645 MILLION EXPLORATION AND DEVELOPMENT SPENDING OF 247 MILLION IS PLANNED WITH EXPLORATION SPENDING INCREASING TO 105 MILLION FROM 973 MILLION AND DEVELOPMENT SPENDING INCREASING TO 142 MILLION FROM 777 MILLION THE OIL AND NATURAL GAS COMPANY SAID 85 OF EXPLORATION AND DEVELOPMENT FUNDS WILL BE SPENT ON DOMESTIC DRILLING PROJECTS WITH THE REMAINDER GOING TO PROJECTS IN ALGERIA CANADA AND INDONESIA IN ADDITION THE COMPANY HAS BUDGETED 36 MILLION FOR CONSTRUCTION OF GAS GATHERING FACILITIES IN SOUTHWESTERN KANSAS 9401310021 940131 COMMODITIES PRICES OF BASE METALS ARE SURGING AS BUYING BY US COMMODITY FUNDS OTHERS FLOOD MARKET BY NEIL BEHRMANN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BASEMETAL PRICES ARE BOOMING ENERGIZED BY A FLOOD OF BUYING BY US COMMODITY FUNDS AND OTHER SPECULATORS SINCE THEIR LOW POINT IN THE AUTUMN PRICE INCREASES HAVE BEEN NOTHING SHORT OF SPECTACULAR ALTHOUGH METALS DROPPED OFF SLIGHTLY FROM THEIR PEAKS LAST WEEK NICKEL AND LEAD ARE UP 42 ALUMINUM AND TIN 20 ZINC 17 WHILE COPPER GAINED 16 ALL OF THESE BASE METALS OUTPACED THE PERFORMANCE OF GOLD WHICH HAS RISEN 11 FROM ITS SEPTEMBER LOW OF 342 FUND MANAGERS SPOTTED THE BOTTOM OF THE MARKET LATE LAST YEAR AND IN THE MAIN BOOSTED PRICES SAYS TED ARNOLD LONDONBASED METALS ANALYST AT MERRILL LYNCH MANUFACTURERS AND OTHER METALS CONSUMERS WERE SO CONDITIONED BY DEPRESSED PRICES LAST YEAR THAT THEY MAINTAINED LOW INVENTORIES AND WERE LIVING HAND TO MOUTH MR ARNOLD SAYS THUS THEY WERE TAKEN BY SURPRISE BY SUDDEN PRICE SPURTS AND WERE OBLIGED TO PAY HIGHER PRICES FOR THE METALS THEY NEEDED HE SAYS AFTER SUCH IMPRESSIVE GAINS THE MARKET IS LIKELY TO BE VOLATILE IN THE WEEKS AHEAD CAUTIONS WILLIAM ADAMS METALS ANALYST AT RUDOLF WOLFF & CO A LONDON COMMODITY BROKERAGE FIRM METAL PRICES ARE ALREADY MEETING RESISTANCE TO ADDITIONAL GAINS AT CURRENT LEVELS HE SAYS MANY ANALYSTS AGREE THAT THE WORST IS OVER FOR METAL PRODUCERS WHO WEATHERED A STULTIFYING FUNK IN PRICES FROM 1990 THROUGH 1992 YET THEY DOUBT THAT THERE WILL BE A QUICK RETURN TO THE BUOYANT TIMES OF THE PAST DECADE WHEN METAL PRICES SOARED IN THE '80S THE REBOUND WAS PROMPTED BY SHARP INCREASES IN WORLDWIDE PHYSICAL DEMAND SAYS ANGUS MACMILLAN HEAD OF RESEARCH AT BILLITONENTHOVEN METALS LTD DURING THAT PERIOD THE MAJOR INDUSTRIALIZED ECONOMIES RECOVERED VIRTUALLY IN TANDEM NOW HOWEVER ECONOMIES AREN'T MOVING AT THE SAME PACE THE US ECONOMIC RECOVERY FOR INSTANCE IS FAR AHEAD OF THE ECONOMIES OF EUROPE AND THE ASIANPACIFIC REGION THUS DEMAND FOR METALS IS UNEVEN MR MACMILLAN SAYS METALS PURCHASES ARE ONLY SURGING IN THE US DEALERS SAY WHILE DEMAND REMAINS DEPRESSED IN JAPAN AND EUROPE METAL IMPORTS BY CHINA STRONG IN RECENT YEARS ARE SLOWING DEALERS SAY THAT'S BECAUSE COPPER AND NICKEL STOCKS HAVE RISEN IN CHINA AFTER THE COUNTRY'S SUBSTANTIAL PURCHASES IN THE FIRST HALF OF LAST YEAR SINCE THEN ECONOMIC AUSTERITY IMPORT RESTRICTIONS AND CURRENCY DEVALUATION ALSO HAVE CRIMPED CHINA'S ORDERS FOR BASE METALS DEALERS SAY MEANWHILE DEALERS ARE NERVOUS ABOUT THE EXPORT INTENTIONS OF RUSSIAN MINES WHICH ACCOUNT FOR MUCH OF THE WORLD'S SUPPLY OF INDUSTRIAL METALS AS A RESULT OF RUSSIA'S HYPERINFLATION RECESSION AND CURRENCY DEVALUATION RUSSIAN AND OTHER COMMONWEALTH OF INDEPENDENT STATES METAL PRODUCERS MUST SELL AS MUCH OF THEIR COMMODITIES AS POSSIBLE TO RAISE MONEY ON THE OTHER HAND RUSSIA'S PRODUCTION OF KEY METALS SUCH AS NICKEL AND COPPER IS SLIDING SO SOME METALS MERCHANTS EXPECT A CONSEQUENT DECLINE IN EXPORTS SOME NERVOUSNESS METAL DEALERS ALSO WAIT NERVOUSLY TO SEE WHETHER RUSSIAN PRODUCERS AND EASTERN EUROPEAN NATIONS WILL AGREE TO STEM ALUMINUM EXPORTS THIS YEAR AN UNUSUALLY HIGH TOTAL OF ABOUT 14 MILLION METRIC TONS OF ALUMINUM OR ABOUT 10 OF GLOBAL SUPPLIES WAS EXPORTED BY THESE COUNTRIES IN 1993 EVEN THOUGH THE PRICE OF ALUMINUM WHICH IS TRADED AS A FUTURES CONTRACT AT THE LONDON METAL EXCHANGE TOUCHED A SIXMONTH HIGH LAST WEEK METAL MERCHANTS AND DEALERS ARE SKEPTICAL ABOUT RECENT INDUSTRY TALKS IN BRUSSELS AIMED AT SLASHING ALUMINUM OUTPUT WORLDWIDE EVEN IF THERE WERE TO BE GLOBAL OUTPUT CUTS THERE WOULD STILL BE MORE THAN ENOUGH INVENTORIES TO SATISFY THE DEMAND FOR ALUMINUM AND OTHER BASE METALS ANALYSTS SAY METALS INVENTORIES ARE HIGHER THAN AT ANY TIME DURING THE '80S AND IN SOME INSTANCES THEY ARE CONSIDERABLY LARGER SAYS MR MACMILLAN OF BILLITONENTHOVEN HE ESTIMATES THAT NICKEL'S WORLDWIDE INVENTORIES AMOUNT TO 22 WEEKS' WORTH OF CONSUMPTION ALUMINUM 15 WEEKS' AND ZINC AND TIN ABOUT 14 WEEKS' SUPPLYANDDEMAND FUNDAMENTALS OF COPPER AND LEAD ARE MORE POSITIVE MR MACMILLAN SAYS IT WOULD ONLY TAKE ABOUT EIGHT WEEKS TO CONSUME EXISTING STOCKS OF THESE TWO METALS HE SAYS NOT MAGIC REGARDLESS OF SPECULATIVE FERVOR METALS INVENTORIES CANNOT SIMPLY DISAPPEAR LIKE MAGIC MR MACMILLAN SAYS MOREOVER ARTIFICIALLY HIGH PRICES ARE DISCOURAGING MANY PRODUCERS FROM CUTTING PRODUCTION HE SAYS ALTHOUGH AS MR ARNOLD SAYS THE PSYCHOLOGY OF THE MARKET CHANGED DRAMATICALLY IN THE PAST TWO MONTHS PRICES COULD STILL SEE PERIODIC PRICE TUMBLES HE SAYS FOR BASE METALS TO REMAIN IN A SUSTAINED UPWARD TREND ORDERS MUST IMPROVE WORLDWIDE AND BE ACCOMPANIED BY FALLING OUTPUT ANALYSTS SAY YET GENUINE METALS CONSUMERS THAT SEE AN IMPROVEMENT IN BUSINESS WILL BUY WHENEVER PRICES FALL HE SAYS 9401310020 940131 TRACKING THE ECONOMY BY ALAN YONAN JR THE ERRATIC PACE OF JOB GROWTH THAT KEPT ECONOMISTS GUESSING FOR MOST OF 1993 HAS SMOOTHED OUT AND THE PACE IS EXPECTED TO STAY ON ITS STEADY UPWARD PATH FOR THE REST OF THE YEAR NONFARM PAYROLL JOBS FLUCTUATED WILDLY FROM MONTH TO MONTH FOR THE FIRST THREE QUARTERS OF 1993 BEFORE SETTLING INTO A GROOVE OF 160000200000 A MONTH STARTING IN SEPTEMBER A LABOR DEPARTMENT REPORT THIS WEEK PROBABLY WILL SHOW THE ECONOMY PICKED UP ANOTHER 200000 PAYROLL JOBS IN JANUARY SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP IN PITTSBURGH WE EXPECT TO SEE A FAIRLY BROADBASED RISE WITH INCREASES IN MANUFACTURING CONSTRUCTION MINING AND SERVICE INDUSTRIES HE SAID MANUFACTURERS WHO HAVE BEEN RELUCTANT TO HIRE FULLTIME EMPLOYEES EVER SINCE THE RECESSION PROBABLY TOOK ON AN ADDITIONAL 10000 TO 20000 WORKERS IN DECEMBER ACCORDING TO MR HOFFMAN FOR ALL OF 1993 JUST UNDER TWO MILLION PAYROLL JOBS WERE GENERATED AND WE EXPECT TO SEE FURTHER PROGRESS IN THE JOB MARKET IN 1994 HE SAID THE LABOR DEPARTMENT REPORT ALSO SHOULD SHOW CONTINUED CONTAINMENT OF WAGE COSTS ONE OF THE MAIN FACTORS IN CONTROLLING INFLATION MR HOFFMAN SAID 9401310019 940131 BUSINESS BRIEF HILLHAVEN CORP LARGEST SHAREHOLDER INCREASES ITS STOCK OWNERSHIP TO 25 HILLHAVEN CORP A TACOMA WASHBASED NURSINGHOME OPERATOR SAID ITS LARGEST SHAREHOLDER NATIONAL MEDICAL ENTERPRISES INC INCREASED ITS HOLDINGS OF HILLHAVEN SHARES TO 25 ON A FULLY DILUTED BASIS NATIONAL MEDICAL WHICH SPUN OFF HILLHAVEN IN 1990 WHILE RETAINING 14 OF THE CONCERN EXERCIZED WARRANTS TO PURCHASE SIX MILLION SHARES OF HILLHAVEN'S STOCK A HILLHAVEN SPOKESMAN DESCRIBED NATIONAL MEDICAL SANTA MONICA CALIF AS A PASSIVE LONGTERM INVESTOR 9401310017 940131 AND WE THOUGHT THEY SOLD BEER AT GAMES TO WASH DOWN PEANUTS BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BASEBALL'S 28 TEAMS FINALLY REACHED A REVENUESHARING AGREEMENT RECENTLY IT WAS PRESENTED AS A RARE ACT OF TEAM OWNERS' STATESMANSHIP A UNIQUE AND HISTORIC DAY AS INTERIM COMMISSIONER BUD SELIG PUT IT BUT BEER SALES MAY HAVE HAD FAR MORE TO DO WITH IT DURING THE LAST WEEKS OF BASEBALL'S LONG EFFORT TO TRANSFER FUNDS FROM RICH BALL CLUBS TO DISTRESSED ONES THE CHIEF EXECUTIVES OF THE KANSAS CITY ROYALS SAN FRANCISCO GIANTS AND HOUSTON ASTROS REVENUESHARING PROPONENTS ALL PLACED CALLS TO THE CHAIRMAN OF THE ST LOUIS CARDINALS A STAUNCH OPPONENT SUDDENLY ST LOUIS BROKE FROM THE GROUP BLOCKING REVENUESHARING AND OFFERED THE COMPROMISE THAT WAS FINALLY ACCEPTED WHAT HAPPENED WELL TEAM OWNERS WEAR MORE THAN ONE CAP DAVID GLASS THE ROYALS' CHAIRMAN ALSO HEADS WALMART STORES INC THE LARGEST CUSTOMER OF THE CARDINALS' PARENT BEER MARKETER ANHEUSERBUSCH COS DRAYTON MCLANE JR THE ASTROS' OWNER IS WALMART'S SECOND BIGGEST SHAREHOLDER PETER MAGOWAN THE GIANTS' OWNER ALSO IS CHAIRMAN OF SAFEWAY INC THE NATION'S THIRDLARGEST SUPERMARKET CHAIN WHEN THEY TALK BREWERY CHIEF AUGUST A BUSCH III LISTENS HE EXPLAINED TO CARDINALS PRESIDENT STEWART MEYER ACCORDING TO PEOPLE FAMILIAR WITH EVENTS THAT THERE WAS GOING TO BE A CHANGE IN THE CLUB'S POSITION MR MEYER TOOK IT FROM THERE GOSH I DON'T DESERVE ANY CREDIT FOR IT SAYS MR GLASS WHO DOES ADMIT TO DRAWING ON HIS LONGTIME BUSINESS AND PERSONAL RELATIONSHIP WITH MR BUSCH ST LOUIS DESERVES THE CREDIT FOR BRINGING IN FRESH PROPOSALS MESSRS MAGOWAN AND MCLANE ACKNOWLEDGE MAKING CALLS TERMED BY THE LATTER AS VERY FRIENDLY VERY CORDIAL NOT THREATENING OR INTIMIDATING WHATSOEVER BUT BASEBALL OFFICIALS WHILE NOTING THAT OTHER FACTORS AND OTHER PEOPLE CONTRIBUTED TO THE ACCORD SAY THESE WERE THE CONTACTS THAT BROKE THE STALEMATE ANYBODY WHO KNOWS AUGUST BUSCH KNOWS THE LAST THING YOU CAN DO IS THREATEN HIM SAYS AN INSIDER BUT THESE WERE FRIENDLY CALLS REMINDING HIM OF THE CARDINALS' BIGGER INTERESTS AND OF COURSE ONE OF THOSE INTERESTS IS SELLING BEER SAYS A LONGTIME BASEBALL EXECUTIVE EVERY CLUB VOTES ITS OWN ECONOMY AND IN THE CASE OF THE CARDINALS IT'S ALWAYS THE ECONOMY OF BEER AT WORK 9401310016 940131 CREDIT MARKETS POLITICAL GIVING BY MUNI DEALERS TAKES ALL FORMS BY LAURIE P COHEN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL SOME OHIO STATE LEGISLATORS GOT MORE THAN COOKIES AND SODA AT A MEETING IN COLUMBUS LAST JUNE WITH OFFICIALS OF MCDONALD & CO SECURITIES A MUNICIPALBOND DEALER ON THE WAY OUT THEY ALSO GOT 500 CHECKS OR AS MCDONALD PUTS IT HONORARIUMS FOR THEIR TIME THE SECURITIES AND EXCHANGE COMMISSION IS NOW CONSIDERING A PROPOSAL THAT WOULD BAR MUNICIPALBOND DEALERS AND UNDERWRITERS FROM MAKING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS BUT POLITICAL CONTRIBUTIONS AREN'T THE ONLY WAY TO WIN INFLUENTIAL FRIENDS IN THE MUNICIPALBOND BUSINESS BESIDES HONORARIUMS DEALERS AND UNDERWRITERS HAVE GIVEN ISSUERS AND POLITICIANS PERKS RANGING FROM GOLF TRIPS AND FANCY DINNERS TO BASEBALL AND THEATER TICKETS THE PRACTICE OF GIFTGIVING BY BOND DEALERS SEEKING UNDERWRITING BUSINESS IS WIDESPREAD SAYS PAUL WOOLSEY WHO WORKED IN MUNICIPAL FINANCE IN OKLAHOMA FOR 25 YEARS IT GOES ON EVERYWHERE IN THE COUNTRY INDEED UNDERWRITERS HAVE PAID FOR BOND ISSUERS TO ATTEND THE LAVISH ANNUAL PENNSYLVANIA SOCIETY DINNER AT NEW YORK'S WALDORF ASTORIA HOTEL IN OHIO THE FIRM SEASON GOOD & MAYER FETES ISSUERS WITH BASEBALL AND FOOTBALL TICKETS AND OPENINGDAY BUFFETS AND MAINE'S STATE TREASURER TOOK ADVANTAGE OF AN EXPENSEPAID TRIP TO A CONFERENCE IN TUCSON ARIZ SPONSORED BY A COMPANY THAT PROVIDES INVESTMENTMANAGEMENT SERVICES FOR BOND ISSUERS THE TREASURER SAM SHAPIRO SAYS HE ACCEPTED EXPENSES FOR THE TRIP BECAUSE HE WAS A SPEAKER ON A PANEL PROSECUTORS ATTORNEYS AND OTHERS FAMILIAR WITH THE MUNICIPALBOND INDUSTRY SAY THAT AT THE VERY LEAST THE PRACTICE OF GIVING AND TAKING EVEN SMALL GIFTS PROVIDES THE APPEARANCE OF A CONFLICT OF INTEREST AT THE WORST IT MAY BE DOWNRIGHT ILLEGAL FOR IT MAY BE PART OF A PATTERN OF EXTENSIVE WRONGDOING UNDER WHAT HE TERMS THE AL CAPONE THEORY MICHAEL CHERTOFF THE US ATTORNEY IN NEWARK NJ SAYS THAT IN SITUATIONS WHERE THERE IS REASON TO SUSPECT CORRUPT ACTIVITY BUT WHERE THE ALLEGED CRIMES ARE TOUGH TO PROVE PROSECUTORS WILL RESORT TO CHARGING INDIVIDUALS WITH TECHNICAL CRIMES LIKE RECEIVING A GRATUITY WHETHER IT BE A TRIP OR A 75 DINNER THIS RECALLS THE GOVERNMENT'S APPROACH OF CRACKING DOWN ON THE CHICAGO GANGSTER BY CHARGING HIM WITH TAX EVASION INSTEAD OF HARDERTOPROVE CRIMES IT'S A TACTIC THAT HASN'T YET BEEN USED IN CRIMINAL CASES INVOLVING THE MUNICIPALBOND INDUSTRY MR CHERTOFF SAYS BUT IT HAS BEEN EMPLOYED IN OTHER CASES INVOLVING GOVERNMENT OFFICIALS LAST YEAR FOR EXAMPLE A FEDERAL JURY CONVICTED A FORMER HOUSING AND URBAN DEVELOPMENT DEPARTMENT OFFICIAL WHOSE JOB ENTAILED SOLICITING BUSINESS FROM THAT AGENCY ON A CHARGE OF PROVIDING AN EXPENSEPAID TRIP TO NEW YORK AND TICKETS TO THE HIT MUSICAL CATS TO A HUD OFFICIAL EVEN IF STATE LAW DOESN'T FORBID IT PUBLIC OFFICIALS SHOULDN'T BE ACCEPTING GIFTS OR PRESENTS ON ACCOUNT OF THEIR PUBLIC POSITIONS MR CHERTOFF SAYS THE GRATUITY SITUATION IS POTENTIALLY CORRUPTING AND SYMPTOMATIC OF BIGGER PROBLEMS STATE LAWS GOVERNING THE ACCEPTANCE OF ENTERTAINMENT AND GRATUITIES VARY KENTUCKY OFFICIALS AREN'T EVEN PERMITTED TO ATTEND DINNERS HELD FOR THE CLOSING OF BOND OFFERINGS IOWA OFFICIALS CAN GO TO DINNER IF IT COSTS 4 OR LESS IN VIRGINIA AND NORTH DAKOTA LAWS ARE MORE LENIENT WALL STREET FIRMS ARE ACCUSTOMED TO SCHMOOZING AND BOOZING THEIR CORPORATE CLIENTS BUT WINING AND DINING MUNICIPALBOND ISSUERS IS DIFFERENT THESE ARE NOT PRIVATE TRANSACTIONS THEY ARE IN THE PUBLIC DOMAIN SAYS MR WOOLSEY EVERY DOLLAR THAT GOES INTO THESE ENTERTAINMENT EXPENSES IS A DOLLAR OUT OF A TAXPAYER'S POCKET BECAUSE UNDERWRITERS OFTEN SEEK TO RECOUP THE COSTS BY CHARGING THE LOCAL BOND ISSUERS HIGHER FEES CAROL ROBERTS A COUNTY COMMISSIONER IN PALM BEACH FLA SAYS SHE LEARNED THAT THE HARD WAY WHEN AS A NEW COMMISSIONER SHE FLEW TO NEW YORK FOR A CLOSING OF A DEAL IT TAKES AN HOUR TO SIGN THE CONTRACTS AND DOCUMENTS SHE SAYS BUT ALL THE COSTS OF THE TRIP ARE CHARGED BACK TO YOU RESPONDING TO INCREASED SCRUTINY OF THE MUNICIPALBOND MARKET BY PROSECUTORS AND THE SEC THE MUNICIPAL SECURITIES RULEMAKING BOARD LAST WEEK PROPOSED NEW RECORDKEEPING REQUIREMENTS FOR GIFTS AND GRATUITIES MADE BY BOND DEALERS AND UNDERWRITERS THE BOARD THE INDUSTRY'S SELFREGULATORY AGENCY SETS A 100AYEAR CAP ON THE VALUE OF GIFTS ALTHOUGH IT EXEMPTS CERTAIN PAYMENTS AMONG THE ITEMS EXEMPTED OCCASIONAL GIFTS OF MEALS OR TICKETS TO THEATRICAL SPORTING AND OTHER ENTERTAINMENT EVENTS AS WELL AS THE SPONSORING OF LEGITIMATE BUSINESS FUNCTIONS MERRILL LYNCH & CO GOLDMAN SACHS & CO LAZARD FRERES & CO AND OTHER WALL STREET FIRMS HAVE ALREADY TIGHTENED THEIR OWN RULES IN RECENT MONTHS MUNICIPALBOND EMPLOYEES AT THOSE FIRMS MUST CLEAR IN ADVANCE LUNCHES AND DINNERS BOUGHT FOR ISSUERS GOLDMAN IS EVEN CONSIDERING BARRING THOSE ENGRAVED PLASTIC CUBES THAT ARE GIVEN TO MUNICIPALFINANCE CLIENTS AS SOUVENIRS OF A DEAL MR SHAPIRO MAINE'S TREASURER SAYS HE HAS ALREADY NOTICED THE DIFFERENCE WALL STREET FIRMS HE SAYS HAVE CUT BACK SHARPLY ON HOLIDAY GIFTS THIS YEAR I HAD TO BUY MY OWN ADDRESS BOOK HE SAYS I USED TO GET LOTS OF THEM AND ON A RECENT TRIP TO NEW YORK HE SAYS HE ASKED A KIDDER PEABODY & CO BANKER IF THEY COULD TAKE A CAB DOWNTOWN ONLY TO BE TOLD WE'RE TAKING THE SUBWAY MR SHAPIRO SAYS THE BANKER GAVE HIM A 125 SUBWAY TOKEN GORDON REIS MANAGING PARTNER OF SEASON GOOD A CINCINNATIBASED MUNICIPALBOND FIRM SAYS HE SEES NO REASON TO QUIT GIVING AWAY SPORTS TICKETS I DON'T THINK ANYBODY IN THE WORLD CAN BE BOUGHT FOR THE PRICE OF A BASEBALL TICKET ESPECIALLY TO THE REDS HE SAYS WHAT THESE EVENTS DO HE SAYS IS TO PROVIDE ACCESS TO OFFICIALS IN THE OHIO HONORARIUM INCIDENT MCDONALD SAYS IT GAVE CHECKS TO ABOUT 17 STATE LEGISLATORS WHO ATTENDED TWO INFORMAL MEETINGS WITH COMPANY OFFICIALS LAST JUNE IT SEEMED A PERFECTLY ACCEPTABLE PRACTICE TO PAY THEM AN HONORARIUM FOR SPENDING TIME WITH US SAYS RICHARD CLARK A MCDONALD SPOKESMAN AT LEAST ONE STATE REPRESENTATIVE RETURNED HIS CHECK TO MCDONALD BUT OTHERS INCLUDING WAYNE M JONES CASHED THEIRS IT WAS LEGAL MR JONES SAYS ADDING WE HAVE ABSOLUTELY NO CONTROL OVER AWARDING BOND ISSUES MR JONES HOWEVER DOES SIT ON A LEGISLATURE FINANCE COMMITTEE MCDONALD'S ACTION WHICH WAS LAWFUL HAS CERTAINLY MADE WAVES IN OHIO LAST WEEK THE STATE LEGISLATURE PASSED A BILL PROHIBITING HONORARIUMS AND LIMITING GRATUITIES TO 75 A YEAR FOR EACH LEGISLATOR GOV GEORGE V VOINOVICH IS EXPECTED TO SIGN THE BILL INTO LAW SOON TREASURYS WERE PUSHED HIGHER ACROSS THE BOARD FRIDAY ON WORD THAT INFLATION PRESSURES WERE MINIMAL IN THE FOURTH QUARTER SOON AFTER THE COMMERCE DEPARTMENT REPORTED FOURTHQUARTER GROSS DOMESTIC PRODUCT FIGURES IN THE MORNING PRICES BEGAN SOARING PROFITTAKING BY MIDAFTERNOON TOOK SOME OF THE GLOW OFF THE GAINS BUT NONETHELESS THE MARKET PUT IN AN IMPRESSIVE PERFORMANCE THE BENCHMARK 30YEAR TREASURY BOND ROSE 5/8 POINT OR 625 FOR A BOND WITH 1000 FACE VALUE TO 100 13/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 621 FROM 626 ON THURSDAY TRADERS AND INVESTORS BOTH IN THE US AND ABROAD IGNORED THE STRONG FOURTHQUARTER GROSS DOMESTIC PRODUCT GROWTH RATE OF 59 TO CAST THEIR EYES ON INFLATION DATA WITHIN THE GDP REPORT THE COMMERCE DEPARTMENT REPORTED THE FIXEDPRICE DEFLATOR ROSE AT A RATE OF 22 AND THE IMPLICIT PRICE DEFLATOR A MEASURE OF CONSUMER CONSUMPTION PATTERNS ROSE AT A RATE OF ONLY 13 GROWTH WAS STRONG BUT WITHIN CONSENSUS AND THE MARKET REALLY ROARED ON THE LOW DEFLATOR DATA AND SORT OF RAN WITH THAT ALL DAY SAYS CARY LEAHEY SENIOR FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS INC IN DOING SO THE MARKET IGNORED SOME DATA THAT MAY INDICATE THAT FIRSTQUARTER GROWTH WILL BE STRONGER THAN ANTICIPATED THE FOURTHQUARTER GDP REPORT WASN'T BOOSTED AS MUCH AS EXPECTED BY INVENTORY REBUILDING MR LEAHEY NOTED THAT BODES WELL FOR FIRSTHALF GROWTH HE SAID 9401310015 940131 REVIEW & OUTLOOK EDITORIAL REENGINEERING GERMANY IT'S INCREASINGLY KNOWN THAT SOME OF THE CLINTON ADMINISTRATION'S LEADING LIGHTS VERY MUCH ADMIRE GERMANY THE CAPITALIST WELFARE STATE THAT WORKS WELL USED TO MAYBE IT WOULD BE AN UNDERSTATEMENT TO SAY THAT THE ECONOMIC NEWS FROM GERMANY HASN'T BEEN GOOD RECENTLY WESTERN GERMANY'S UNEMPLOYMENT COULD REACH 10 THIS YEAR THERE IS ENCOURAGING NEWS ON THE POLICY FRONT HOWEVER AT LEAST IT'S ENCOURAGING FROM OUR POLITICAL PERSPECTIVE SOME OF GERMANY'S LEADING FIGURES HAVE RECOGNIZED THAT IF THE COUNTRY IS TO COMPETE WITH ITS LESSPROSPEROUS NEIGHBORS TO THE SOUTH AND EAST SIGNIFICANT REFORMS MUST BE UNDERTAKEN THIS REPRESENTS THE FIRST MAJOR CRACK IN THE GENERAL UNWILLINGNESS TO BLAME THE WELFARE STATE FOR DRAGGING DOWN THE ECONOMY PROPOSALS IN THE GOVERNMENT'S ACTION PROGRAM FOR MORE GROWTH AND JOBS ARE FORTHRIGHT THE 30POINT PLAN JUST ADOPTED IS A DUAL ACKNOWLEDGEMENT THAT THE GERMAN STATE CAN NO LONGER PROVIDE THE RANGE OF SOCIAL SERVICES IT OFFERED DURING THE COLD WAR ERA AND THAT ITS BURDENSOME REGULATION IS AN OBSTACLE TO GERMAN COMPETITIVENESS INCLUDED ARE CALLS FOR DEREGULATION PARTICULARLY IN HOUSING AND PRIVATIZATION OF SOME STATE OPERATIONS SUCH AS THE FINANCING CONSTRUCTION AND OPERATION OF STATE HIGHWAYS CHANCELLOR HELMUT KOHL SAYS THESE DECISIONS ARE ABSOLUTELY NECESSARY TO SAFEGUARD OUR FUTURE BOOSTING THE CREDIBILITY OF THE GOVERNMENT'S REFORMIST SPIRIT ARE OTHER RECENT ACTIONS NEARLY 3 BILLION IN SPENDING CUTS JUST AGREED TO FOLLOWING A DECEMBER ANNOUNCEMENT OF REDUCTIONS IN THE GOVERNMENT'S GENEROUS UNEMPLOYMENT BENEFITS AND CHILDSUPPORT PAYMENTS A FEDERAL PROGRAM THAT COMPENSATES CONSTRUCTION WORKERS WHEN BAD WEATHER PREVENTS THEM FROM WORKING WILL BE MODIFIED GERMANY'S BIGGEST ECONOMIC PROBLEM OF COURSE IS HIGH LABOR COSTS IN A RECENT INTERVIEW WITH THE HAMBURG NEWSPAPER BILD MR KOHL CONCEDED WE ALL HAVE TO CHANGE OUR WAY OF THINKING NOW IN ORDER TO SECURE GERMANY AS A FUTURE LOCATION AND MAKE IT COMPETITIVE THE PROBLEM IS LABOR HAS BECOME TOO EXPENSIVE IN OUR COUNTRY THE GERMAN CHAMBER OF COMMERCE AND INDUSTRY REPORTED IN NOVEMBER THAT CLOSE TO ONE IN THREE OF THE COUNTRY'S MANUFACTURERS WERE EXPECTING TO TRANSFER PARTS OF THEIR OPERATIONS OUT OF THE COUNTRY SO THE WELFARE STATE THAT WORKS IS BEING REENGINEERED WE HOPE THE ADMINISTRATION'S ADMIRERS OF THE OLD MODEL WILL CHECK IT OUT 9401310014 940131 KEYCORPSOCIETY VOTE IS APPROACHING PLAN TO CREATE BIG BANKING CHAIN ATTRACTS ATTENTION BY SANDRA WARD SPECIAL TO THE WALL STREET JOURNAL NEW YORK LESS THAN A MONTH FROM NOW KEYCORP AND SOCIETY CORP SHAREHOLDERS WILL CAST VOTES ON THE PROPOSED MERGER OF THE TWO BANKING COMPANIES IF ALL GOES AS PLANNED THEY WILL CREATE KEY BANCSHARES THE 10TH LARGEST BANKING CHAIN IN THE NATION USUALLY SUCH A VOTE WOULD RESULT IN THE ROUTINE ENDORSEMENT OF THE PROPOSAL BUT THIS CASE HAS ATTRACTED WALL STREET'S ATTENTION BECAUSE KEYCORP MUST CLEAR SOME HURDLES THAT THREATEN TO TRIP UP THE TRANSACTION AND IT HAS INDUSTRY EXECUTIVES INTERESTED BECAUSE THE OUTCOME COULD HELP SHAPE THE COURSE OF BANK MERGERS AND ACQUISITIONS TO COME THE KEY VOTE IS THE KEY VOTE SAID THOMAS MCCANDLESS AN ANALYST AT PAINEWEBBER INC THAT'S BECAUSE THE MERGER NEEDS THE APPROVAL OF HOLDERS OF TWOTHIRDS OF KEYCORP'S STOCK AT A SPECIAL MEETING FEB 16 INSTEAD OF THE SIMPLE MAJORITY TYPICALLY REQUIRED KEYCORP WITH HEADQUARTERS IN ALBANY NY AND 33 BILLION IN ASSETS IS CHARTERED AS A CORPORATION IN THE STATE AND IS REQUIRED UNDER STATE LAW TO GARNER THE HIGHER LEVEL OF VOTES SOCIETY A 26 BILLIONASSET BANK HOLDING COMPANY BASED IN CLEVELAND IS HOLDING A SPECIAL SHAREHOLDERS MEETING ON THE SAME DAY IN WHICH IT IS REQUIRED TO WIN ONLY A MAJORITY OF VOTES SINCE INDIVIDUALS ARE A LARGE PERCENTAGE OF KEYCORP'S STOCKHOLDER BASE ABOUT 48 AND BECAUSE UNCAST BALLOTS WILL BE CONSIDERED NO VOTES KEYCORP IS SEEN AS HAVING TO PULL OUT ALL THE STOPS TO CONVINCE BOTH INSTITUTIONAL AND INDIVIDUAL SHAREHOLDERS THAT THE MERGER SHOULD BE SANCTIONED FOR THE PAST TWO WEEKS KEYCORP AND SOCIETY EXECUTIVES HAVE BEEN ON THE ROAD AND ON THE TELEPHONE PEDDLING THE MERITS OF THE MERGER TO INSTITUTIONAL HOLDERS A SIGN SOME SAY OF NERVOUSNESS THAT THE VOTE COULD GO AGAINST THEM ADDING TO THE CONCERN IS SPECULATION THAT SOME INSTITUTIONAL HOLDERS HAVE EITHER HELD ON TO THE SHARES SINCE THE PROPOSAL WAS PUT FORTH OCT 4 OR TAKEN POSITIONS BEFORE THE RECORD DATE OF DEC 28 TO SEND IT DOWN AND THE STOCK UP IF THE MERGER PLAN IS DEFEATED THE COMPANY WOULD BE SEEN AS A TAKEOVER TARGET AND THE STOCK PUT IN PLAY SECURITIES ANALYSTS SAID INDEED LONG BEFORE THE MERGER WAS PROPOSED MANY INVESTORS WERE LURED TO KEYCORP ON THE BET THAT CHAIRMAN AND CHIEF EXECUTIVE VICTOR J RILEY WOULD CASH OUT AND PUT THE COMPANY UP FOR SALE AS HE DREW CLOSER TO RETIREMENT AGE WITHOUT HAVING PICKED A SUCCESSOR WHEN MR RILEY OPTED TO HITCH UP WITH SOCIETY IN A MERGEROFEQUALS TRANSACTION INSTEAD MANY HOLDERS WERE DISAPPOINTED THAT THEY WOULDN'T RECEIVE AN IMMEDIATE PREMIUM FOR THEIR SHARES BUT WOULD HAVE TO WAIT FOR ANY ADDED VALUE TO MATERIALIZE MERGERSOFEQUALS TRANSACTIONS TEND TO BE VIEWED SKEPTICALLY BECAUSE OFTEN THE INTEGRATION OF THE COMPANIES GETS BOGGED DOWN THROWING COSTREDUCTION AND EARNINGSGROWTH TARGETS OFF TRACK DONALD KAUTH A SPOKESMAN FOR KEYCORP SAID THE COMPANY IS CONFIDENT IT WILL WIN THE SUPPORT OF SHAREHOLDERS BIG AND SMALL WE THINK WE'RE GOING TO GET IT HE SAID WE HAVEN'T HEARD THAT HOLDERS WILL VOTE AGAINST IT BUT SOUNDING A NOTE OF CAUTION MR KAUTH ADDED YOU FIND OUT HOW THEY'RE GOING TO VOTE WHEN THEY ACTUALLY VOTE MR KAUTH HOWEVER THINKS THAT HOLDERS WHO DISAPPROVE OF THE MERGER HAVE PROBABLY ALREADY LEFT THE STOCK EVEN THE PRESENCE OF HEDGEFUND MANAGER MICHAEL STEINHARDT WHO BOUGHT 11 MILLION SHARES IN THE THIRD QUARTER DOESN'T RUFFLE KEYCORP MR KAUTH SAID AS FAR AS WE CAN TELL THEY'RE IN THIS BECAUSE OF THE FUNDAMENTALS MR STEINHARDT COULDN'T BE REACHED FOR COMMENT THE COMPANY'S LARGEST INSTITUTIONAL SHAREHOLDER DELAWARE MANAGEMENT CO HAS ALREADY VOTED FOR THE MERGER SAID ROBERT ARNOLD A BANK ANALYST AT THE PHILADELPHIABASED MONEY MANAGEMENT FIRM DELAWARE WAS PERSUADED TO VOTE IN FAVOR OF THE MERGER ONLY AFTER KEYCORP AND SOCIETY EXECUTIVES CAME CALLING JAN 10 MR ARNOLD SAID THEY REALLY DID A GOOD JOB OF EXPLAINING WHY THE MERGER MADE STRATEGIC SENSE HE SAID THAT WAS A PIVOTAL MEETING FOR US WE WERE ON THE BORDER AND WE TURNED VERY FAVORABLE AFTER THAT MR ARNOLD NOTED THAT THE TWO BANKS HAVE DISTINCT STRENGTHS KEYCORP IN CONSUMER BANKING AND SOCIETY IN TRUST SERVICES THAT CAN PLAY TO EACH OTHER'S CUSTOMER BASES AND LEAD PERHAPS TO MEANINGFUL REVENUE GROWTH I THINK THIS IS A HUGE ADVANTAGE IN THIS MERGER HE SAID EVEN MORE IMPRESSIVE MR ARNOLD SAID IS THE COMPATIBILITY OF THE TWO COMPANIES' BACKOFFICE TECHNOLOGY THE OVERLAP LARGELY REMOVES AN EXPENSE TYPICALLY ASSOCIATED WITH SUCH MERGERS AND SPEEDS ALONG THE INTEGRATION I HAVE A FEELING IF THIS MERGER SUCCEEDS IT'S GOING TO CHANGE THE COURSE OF THE BANK M&A GAME FOREVER MR ARNOLD SAID BASED ON CONVERSATIONS WITH INDUSTRY EXECUTIVES IF IT SUCCEEDS WE'RE GOING TO SEE A LOT OF MERGERS OF EQUALS MR ARNOLD ALSO CONFIRMED THAT DELAWARE ADDED TO ITS KEYCORP POSITION IN THE FOURTH QUARTER ON HIS RECOMMENDATION THE SHARES HAD BECOME EXTREMELY UNDERVALUED BASED ON PROJECTED EARNINGS AND PRICETOBOOK VALUE HE SAID 9401310013 940131 FAB SAYS PROFIT WAS BETTER THAN EXPECTED IN ITS FOURTH QUARTER NEW YORK FAB INDUSTRIES INC FUELED BY STRONGER VOLUME IN HIGHERMARGIN PRODUCTS EXPECTS TO POST FISCAL FOURTHQUARTER EARNINGS THAT ARE A LOT BETTER THAN A YEAR EARLIER SAMSON BITENSKY CHAIRMAN SAID IN AN INTERVIEW MR BITENSKY WHO IS ALSO PRESIDENT OF THE TEXTILE COMPANY SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT PUT FAB EARNINGS AT ABOUT 75 CENTS A SHARE OR A TOTAL OF ABOUT 47 MILLION FOR THE QUARTER ENDED NOV 30 THAT WOULD BE AN INCREASE OF ABOUT 19 FROM A YEAR BEFORE WHEN NET INCOME WAS 63 CENTS A SHARE OR 4 MILLION SALES ROSE 74 TO ABOUT 46 MILLION FROM 428 MILLION FOR THE YEAR MR BITENSKY IS COMFORTABLE WITH ESTIMATES THAT FAB'S EARNINGS ROSE TO ABOUT 17 MILLION OR 274 A SHARE FROM 169 MILLION OR 265 A SHARE SALES WERE FLAT AT ABOUT 190 MILLION EARNINGS AND SALES DECLINED IN FISCAL 1993'S FIRST HALF BUT MR BITENSKY IS SEEING AN UPTREND THAT STARTED IN THE THIRD QUARTER FAB MAKES TEXTILES MOSTLY FOR THE APPAREL INDUSTRY AS RETAIL SALES SLOWED BECAUSE OF CONSUMER UNCERTAINTY OVER THE ECONOMY SO DID FAB'S SALES MR BITENSKY SAID SO FAR THIS YEAR THE FIRST QUARTER LOOKS BETTER THAN LAST YEAR IN SALES AND PROFITS MR BITENSKY SAID HE IS LOOKING FOR FIRSTQUARTER SALES TO INCREASE ABOUT 10 FROM THE 386 MILLION OF A YEAR AGO AND FOR FIRSTQUARTER EARNINGS TO RISE TO AT LEAST 28 MILLION OR 45 CENTS A SHARE FROM THE YEARAGO 23 MILLION OR 37 CENTS A SHARE FAB IS LOOKING TO EXPAND BOTH INTERNALLY AND THROUGH ACQUISITION TO ROUND US OUT I WOULD LIKE TO FIND A MIDSIZE SPECIALTY WEAVING COMPANY WITH GOOD MANAGEMENT MR BITENSKY SAID HIS GOAL IS TO ADD 100 MILLION IN SALES OVER THE NEXT FOUR OR FIVE YEARS FAB HAS CASH IN INVESTMENTS OF ABOUT 62 MILLION AND NO LONGTERM DEBT THE EXECUTIVE ALSO SAID THAT ASSUMING THE DOLLAR CONTINUES TO STRENGTHEN AGAINST THE MARK HE PLANS TO INCREASE CAPITAL SPENDING TO 7 MILLION TO 8 MILLION THIS YEAR FROM THE 49 MILLION OF A YEAR AGO FAB BUYS MOST OF ITS EQUIPMENT FROM GERMANY OR JAPAN 9401310012 940131 ECONOMY ECONOMY GREW AT STRONG RATE IN 4TH QUARTER ANNUAL PACE OF 59 RAISES ANALYSTS' EXPECTATIONS FOR THE 1ST HALF OF 1994 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY'S EXTREMELY STRONG PERFORMANCE IN LAST YEAR'S FOURTH QUARTER HAS RAISED EXPECTATIONS ABOUT THIS YEAR'S FIRST HALF THE COMMERCE DEPARTMENT SAID ECONOMIC GROWTH SHOT UP AT AN ANNUAL RATE OF 59 IN THE DECEMBER QUARTER WHILE INFLATION STAYED WELL IN CHECK THAT'S THE BEST PERFORMANCE THE ECONOMY HAS TURNED IN SINCE THE FOURTH QUARTER OF 1987 THREE YEARS BEFORE THE COUNTRY SLIPPED INTO RECESSION GROWTH WAS ENTIRELY IN THE PRIVATE SECTOR AS GOVERNMENT SPENDING CONTINUED TO SHRINK FOR THE YEAR GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US EXPANDED 29 UP FROM 26 IN 1992 BUT MORE IMPORTANT THAN WHAT THAT STRONG GROWTH SAYS ABOUT A QUARTER THAT IS NOW HISTORY IS WHAT IT SUGGESTS ABOUT THE REST OF THIS YEAR AND THOUGH ALMOST NO ONE EXPECTS GROWTH TO KEEP UP THE BREAKNECK PACE OF THE FOURTH QUARTER SOME ANALYSTS SEEM TO BE VERY ENCOURAGED THAT THE ECONOMY MAY BE A BIT STRONGER THAN PEOPLE HAVE GENERALLY THOUGHT THE SURPRISINGLY UPBEAT ECONOMIC REPORT SENT STOCK AND BOND PRICES HIGHER ON FRIDAY THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 1913 POINTS TO 394543 ITS SECOND STRAIGHT RECORD LAST WEEK TREASURY BOND PRICES ROSE ACROSS THE BOARD PRIMARILY BECAUSE THE ECONOMY'S SURGE WAS ACCOMPANIED WITH MINIMAL INFLATION JIM MEIL CHIEF ECONOMIST OF EATON CORP A MAKER OF AUTO PARTS IN CLEVELAND SAID THAT ON THURSDAY HE PUT THE PROBABILITY OF 4PLUS GROWTH IN 1994 AT ABOUT ONE IN FIVE ON FRIDAY AFTER HE HAD SEEN THE DETAILS OF ECONOMIC GROWTH IN THE FOURTH QUARTER HE SAID THE PROBABILITY OF 4PLUS GROWTH WAS ROUGHLY 33 MR MEIL'S FORECAST IS FOR GROWTH AT A 35 ANNUAL RATE IN THE FIRST QUARTER AND A 3 PACE IN THE SECOND IT MAY BE THAT THIS ECONOMY HAS STRONGER LEGS THAN WE HAVE GIVEN IT CREDIT FOR SAID ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST IN CHICAGO MORE IMPORTANT THAN THE MOOD OF ECONOMISTS HOWEVER IS THAT CONSUMERS ACTUALLY SEEM TO BELIEVE THINGS ARE GETTING BETTER TO STAY THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX IS SAID TO HAVE RISEN TO 943 IN JANUARY FROM 882 IN DECEMBER THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX HAS BEEN RISING SINCE OCTOBER BUSINESSES ARE A BIT MORE UPBEAT TOO WE SEE BUSINESS AS BEING STRONG THROUGHOUT THE ENTIRE INDUSTRIAL SECTOR AND EXPECT IT TO STAY THAT WAY FOR THE NEXT SIX TO EIGHT MONTHS SAID PATRICK PARKER CHAIRMAN OF PARKER HANNIFIN CORP WHICH SUPPLIES MAJOR COMPONENTS TO INDUSTRIALEQUIPMENT COMPANIES MR PARKER SAYS THE INDUSTRIAL SIDE OF HIS COMPANY IS UP 15 FROM YEARAGO LEVELS THE ECONOMY SEEMS A LITTLE MORE PREDICTABLE AND SUSTAINABLE SAID DAVID FREEMAN CHIEF EXECUTIVE OF LOCTITE CORP AN ADHESIVE COMPANY IN HARTFORD CONN WE NOW SEE ONE STEP FORWARD AND NO STEPS BACK THE GROWTH IN THE FOURTH QUARTER WAS STRONG IN AREAS WHERE LOW INTEREST RATES TEND TO PLAY A BIG PART HOUSING INVESTMENT ROSE AT A HUGE 317 ANNUAL RATE IN THE FOURTH QUARTER CONSUMER SPENDING ON DURABLE GOODS SUCH AS CARS AND FURNITURE FOR THEIR NEW HOMES SHOT UP AT A 144 PACE BUSINESS INVESTMENT IN CAPITAL EQUIPMENT ROSE AT A 246 RATE AND AFTER A DEEP SLUMP INVESTMENT IN COMMERCIAL BUILDINGS WAS UP AT A 107 ANNUAL PACE DURING THE QUARTER THERE IS MOUNTING EVIDENCE THAT GROWTH WILL STAY AT A FAIRLY REASONABLE PACE IN THE FIRST PART OF 1994 AND NOT PETER OUT AS IT DID IN THE FIRST PART OF LAST YEAR FOR ONE THING HOME SALES AND HOUSING STARTS CLOSED OUT THE YEAR STRONGLY SUGGESTING THAT RESIDENTIAL CONSTRUCTION WILL REMAIN FAIRLY UPBEAT THIS YEAR ALSO DOMESTIC AUTO MAKERS HAVE SAID THEY PLAN ANOTHER INCREASE IN CAR ASSEMBLIES DURING THE FIRST QUARTER COMMERCE DEPARTMENT CHIEF ECONOMIST LEWIS ALEXANDER SAID THAT RECENT SURVEYS SUGGEST BUSINESS INVESTMENT IN CAPITAL EQUIPMENT IS LIKELY TO STAY STRONG AND THAT RISING STOCK PRICES SHOULD HELP CAPITAL INVESTMENT AS WELL WHAT IS VERY EXCITING ABOUT THE NEW GROWTH IN THE ECONOMY IS THAT IT HAS BEEN ACCOMPANIED BY RELATIVELY LITTLE IN THE WAY OF PRICE INCREASES THE FIXEDWEIGHT PRICE INDEX THE BROADEST MEASURE OF INFLATION ROSE AT ONLY A 22 ANNUAL RATE IN THE FOURTH QUARTER THE SAME AS IN THE THIRD PERIOD WHEN THE ECONOMY GREW AT A MORE SLUGGISH 29 RATE WHAT ECONOMISTS ARE WONDERING ABOUT IS THE EFFECT THE LOS ANGELES EARTHQUAKE AND THE WINTRY WEATHER WILL HAVE ON ECONOMIC ACTIVITY IN THE FIRST QUARTER LAURA TYSON WHO HEADS THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE EARTHQUAKE WILL PROBABLY HAVE A NEGATIVE EFFECT ON THE ECONOMY THE EFFECT OF THE WEATHER SHE SAID WAS HARDER TO CALL WE CAN MAKE UP OUR SPENDING FROM ONE WEEK IN ICEBOUND HOUSES BUT IF IT'S TWO OR THREE OR FOUR WEEKS IT GETS HARDER TO MAKE UP DURING THE QUARTER MS TYSON SAID THE COLD WEATHER WILL UNDOUBTEDLY BUMP UP INDUSTRIAL PRODUCTION AND CAPACITY USE AT UTILITIES EXPORTS ROSE AT A STRONG 147 ANNUAL RATE IN THE FOURTH QUARTER EVEN THOUGH MANY LARGE US TRADING PARTNERS ARE STILL HAVING ECONOMIC DIFFICULTIES THE TRADE GAP WORSENED AGAIN HOWEVER BECAUSE IMPORTS GREW AT A FASTER PACE ANALYSTS EXPECT EXPORTS TO IMPROVE IN 1994 THE WORLD IN WHICH WE SELL OUR EXPORTS WILL EXPAND AT A FASTER CLIP IN 1994 THAN IT DID IN 1993 MS TYSON SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS FROM 16 IN THE PREVIOUS QUARTER 9401310011 940131 CONTINENTAL AIR TO ADD FLIGHTS WITH LOW FARES CALITE SERVICE TO PROVIDE HALF OF CARRIER'S HAULS CHALLENGING SOUTHWEST BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL CONTINENTAL AIRLINES WILL NEARLY TRIPLE THE NUMBER OF SHORT LOWFARE FLIGHTS IT FLIES EVERY DAY MAKING THE HOUSTONBASED COMPANY THE ONLY AIRLINE TO OPERATE HALF ITS FLIGHTS WITH CHEAP FREQUENT SERVICE AND THE REST WITH MORE TRADITIONAL LONGHAUL FLIGHTS CONTINENTAL IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL EXPAND ITS LOWFARE CALITE SERVICE AS OF MARCH 9 TO ABOUT 875 DAILY FLIGHTS FROM THE CURRENT 300 THAT IS THE SAME DAY THE AIRLINE IS ELIMINATING ABOUT A THIRD OF ITS SERVICE OUT OF ITS DENVER HUB CONTINENTAL NOW HAS ABOUT 1400 FLIGHTS A DAY PEOPLE FAMILIAR WITH THE COMPANY SAY CONTINENTAL EVENTUALLY IS LIKELY TO MAKE STILL MORE OF ITS FLIGHTS PART OF THE CALITE OPERATION AMONG THE CITIES TO RECEIVE CALITE SERVICE IN MARCH WILL BE INDIANAPOLIS CLEVELAND AND DAYTON OHIO SAN ANTONIO PENSACOLA FLA AND CONTINENTAL'S BIG HUB HOUSTON CALITE SERVICE ALSO WILL BE INITIATED TO CHICAGO'S MIDWAY AIRPORT WHERE SOUTHWEST AIRLINES HAS MOST OF THE FLIGHTS WHILE MOST OF THE CALITE DESTINATIONS ARE CITIES CONTINENTAL ALREADY SERVES SEVERAL OF THEM ARE MARKETS WHERE DALLASBASED SOUTHWEST IS A POWERFUL COMPETITOR SOUTHWEST IS THE INDUSTRY'S ONLY CONSISTENTLY PROFITABLE AIRLINE AND ITS CONTINUED SUCCESS HAS MADE IT THE CARRIER DOZENS OF OTHER AIRLINES SEEK TO EMULATE IT'S TOO SOON TO SAY WHETHER CALITE WILL OPERATE PROFITABLY LAST FALL THE COMPANY SAID CALITE OPERATIONS WERE AHEAD OF ITS FORECASTS BUT WEREN'T YET IN THE BLACK NEVERTHELESS ALMOST EVERY US AIRLINE IS TRYING TO REMAKE ITSELF IN SOUTHWEST'S LOWFARE IMAGE A PIVOTAL PART OF UAL CORP'S UNITED AIRLINES EMPLOYEE BUYOUT APPROVED BY THE COMPANY'S UNIONS LAST WEEK HINGES ON THE DEVELOPMENT OF A LOWCOST OPERATION DELTA AIR LINES ALSO HAS APPOINTED A COMMITTEE TO LOOK INTO A SIMILAR SERVICE DOZENS OF TINY STARTUPS RANGING FROM KIWI AIRLINES IN NEWARK NJ TO VALUJET AIRLINES IN ATLANTA MODEL THEMSELVES ON SOUTHWEST HAVING EMERGED FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION LAST APRIL WITH VASTLY LESS DEBT AND HAVING LOOSER UNION RESTRICTIONS THAN ITS BIGCARRIER RIVALS CONTINENTAL HAS BEEN ABLE TO PLUNGE AHEAD WITH CALITE WHILE ITS RIVALS MERELY MAKE PLANS CALITE STARTED UP LAST OCTOBER WITH SEVERAL DOZEN DAILY FLIGHTS AND GRADUALLY INCREASED THE NUMBER TO SLIGHTLY MORE THAN 300 PRIMARILY IN THE SOUTHEAST AND MIDDLE ATLANTIC STATES WHERE SOUTHWEST DOESN'T FLY AND WHERE HIGHCOST USAIR GROUP INC WAS A TARGET WAITING FOR COMPETITION WHAT ALL THESE AIRLINES ARE TRYING TO DO IS KEEP COSTS LOW AS SOUTHWEST DOES THE CARRIER WHICH IS UNIONIZED AND HAS WAGE RATES ROUGHLY COMPARABLE TO OTHER AIRLINES IS ABLE TO CONTROL COSTS BECAUSE ITS WORK RULES ARE FAR MORE LIBERAL THAN THOSE AT OTHER AIRLINES AND BECAUSE IT ESCHEWS THE HUBANDSPOKE SYSTEM SOUTHWEST FLIGHTS ALSO ARE TURNED AROUND LOADED AND BOARDED WITHIN 15 MINUTES OF LANDING AND THUS SPEND MORE TIME IN THE AIR FERRYING PASSENGERS 9401310010 940131 WHAT'S NEWS WORLDWIDE ISRAELPLO TALKS APPEARED TO CLEAR HURDLES ON PALESTINIAN SELFRULE ISRAEL AND THE PLO WILL REACH A FINAL AGREEMENT VERY SOON FOR ISRAEL'S WITHDRAWAL FROM THE GAZA STRIP AND JERICHO PLO CHAIRMAN ARAFAT SAID AFTER MARATHON TALKS WITH ISRAELI FOREIGN MINISTER PERES IN DAVOS SWITZERLAND BUT THE TWO MEN FAILED TO BREAK A DEADLOCK IN THEIR NEGOTIATIONS ON IMPLEMENTING PALESTINIAN AUTONOMY IN THE OCCUPIED TERRITORIES SAYING THEY WOULD NEED TO MEET AGAIN IN CAIRO NEXT WEEK EGYPT'S FOREIGN MINISTER SAID THE MAJOR HURDLES HAD BEEN CLEARED NEITHER ARAFAT NOR PERES WOULD SAY WHICH MATTERS WERE UNRESOLVED ONE REMAINING ISSUE ACCORDING TO THE EGYPTIAN FOREIGN MINISTER IS THE SIZE OF THE WEST BANK TOWN OF JERICHO JAPAN'S HOSOKAWA WON PROVISIONAL APPROVAL FOR SWEEPING ELECTORAL REFORMS THE PRIME MINISTER'S WEEKEND VICTORY CAPPED AN INTENSE WEEK OF NEGOTIATIONS IN WHICH HE PUT HIS POLITICAL FUTURE AT RISK THE REFORM PROPOSALS WERE ADOPTED ONLY AFTER A LASTMINUTE BARGAIN WITH THE RELUCTANT OPPOSITION THE DATE OF IMPLEMENTATION HASN'T YET BEEN SET HOWEVER WITH FORMAL LEGISLATIVE APPROVAL OF THE COMPROMISE PLAN STILL REQUIRED WASHINGTON OFFICIALS CHEERED HOSOKAWA'S VICTORY HOPING HE NOW CAN TURN HIS ATTENTION TO THE STALLED USJAPAN TRADE TALKS JAPANESE NEWSPAPERS REPORTED THAT THE CABINET WOULD APPROVE AS SOON AS THIS WEEK AN ECONOMIC PACKAGE THAT WOULD INCLUDE INCOMETAX CUTS A BOSNIAN SERB COMMANDER WARNED THE WEST NOT TO USE FORCE TO OPEN THE MUSLIM AIRPORT AT TUZLA SAYING ANY PLANE THAT LANDED THERE WOULDN'T BE ALLOWED TO LEAVE IN BELGRADE RUSSIAN ULTRANATIONALIST ZHIRINOVSKY SAID HIS PARTY WOULD CONSIDER ANY NATO AIR STRIKES AGAINST BOSNIAN SERBS TO BE A DECLARATION OF WAR AGAINST RUSSIA RUSSIA'S PRIME MINISTER VOWED THAT EFFORTS TO FIGHT INFLATION WERE HIS GOVERNMENT'S TOP PRIORITY FINANCIAL STABILIZATION IS AT THE CENTER OF OUR ENTIRE POLICY CHERNOMYRDIN TOLD WORLD BUSINESS LEADERS AT THE ANNUAL WORLD ECONOMIC FORUM IN SWITZERLAND MADISON GUARANTY EMPLOYEES CONTEND THAT AN EXECUTIVE OF THE S&L PROMISED THEY WOULD BE REIMBURSED FOR CONTRIBUTIONS MADE AT AN APRIL 1985 FUNDRAISER FOR THENARKANSAS GOV CLINTON THE EVENT WAS INTENDED TO HELP CLINTON PAY OFF A 1984 CAMPAIGN DEBT NORTH KOREA DENOUNCED US PLANS TO SEND PATRIOT AIRDEFENSE MISSILE BATTERIES TO SOUTH KOREA DECLARING THAT SUCH A STEP WOULD BE A WARLIKE MOVE PYONGYANG SAID THE US WOULD HAVE TO SCRAP ITS PLANS IF WASHINGTON HOPES TO REACH AN ACCORD TO PERMIT INSPECTIONS OF THE NORTH'S NUCLEAR SITES IRISH ACTIVIST GERRY ADAMS WAS GRANTED A US VISA TO ATTEND A NEW YORK CONFERENCE ON NORTHERN IRELAND TOMORROW THE WHITE HOUSE SAID ADAMS IS HEAD OF THE POLITICAL WING OF THE IRISH REPUBLICAN ARMY A PRORUSSIAN SECESSIONIST APPEARED TO BE THE VICTOR IN A PRESIDENTIAL RUNOFF ELECTION IN UKRAINE'S AUTONOMOUS REPUBLIC OF CRIMEA WITH VOTE COUNTING STILL UNDER WAY THE APPARENT VICTOR WAS YURI MESHKOV WHO CAMPAIGNED ON A PLEDGE FOR CRIMEA TO REJOIN RUSSIA THE AFRICAN NATIONAL CONGRESS OFFERED TO LET SOUTH AFRICA'S PROAPARTHEID WHITES VOTE FOR THEIR OWN HOMELAND BUT SAID A BLACK GOVERNMENT WOULD RETAIN THE POWER TO VETO RESULTS OF ANY SUCH VOTE AN ARMYBACKED COMMITTEE CHOSE ALGERIA'S HARDLINE DEFENSE MINISTER TO BE PRESIDENT TIGHTENING THE MILITARY'S CONTROL OVER ALGERIA LAMINE ZEROUAL NAMED TO SUCCEED AN UNELECTED FIVEMAN GROUP IS SUPPOSED TO LEAD THE NATION BACK TO DEMOCRACY THE DALLAS COWBOYS WON THE NATIONAL FOOTBALL LEAGUE'S SUPER BOWL IN ATLANTA DEFEATING THE BUFFALO BILLS 30 TO 13 PETE SAMPRAS OF THE US WON THE AUSTRALIAN OPEN MEN'S SINGLES TENNIS TITLE DEFEATING FELLOW AMERICAN TODD MARTIN IN STRAIGHT SETS ON SATURDAY STEFFI GRAF OF GERMANY WON THE WOMEN'S TITLE BY BEATING ARANTXA SANCHEZ VICARIO OF SPAIN IN STRAIGHT SETS DIED WILLIAM J LEVITT 86 NEW YORK DEVELOPER WHO PIONEERED THE IDEA OF AFFORDABLE SUBURBAN HOUSES WITH THE CONSTRUCTION OF LEVITTOWN ON LONG ISLAND FRIDAY IN MANHASSET NY OF KIDNEY FAILURE 9401310009 940131 INTERNATIONAL REFORM COMPROMISE BUOYS HOSOKAWA JAPANESE LEADER TO FOCUS ON TRADE TALKS ECONOMY BY WALL STREET JOURNAL REPORTERS JACOB M SCHLESINGER JATHON SAPSFORD AND MICHAEL WILLIAMS TOKYO WHEN MORIHIRO HOSOKAWA DIES ACCORDING TO AN ADVISER THE JAPANESE PRIME MINISTER EXPECTS TO GO TO HEAVEN AND JOIN THE MEN WHO FOUNDED THE NATION'S GOVERNMENT CENTURIES AGO WHY ARE YOU HERE JAPAN'S PATRIARCHS WILL ASK MR HOSOKAWA'S RESPONSE ACCORDING TO THE AIDE BECAUSE I CHANGED JAPAN MR HOSOKAWA HAS MADE A GREAT LEAP FORWARD IN CHANGING JAPAN BY WINNING PROVISIONAL APPROVAL THIS WEEKEND FOR SWEEPING ELECTORAL REFORM MR HOSOKAWA IS PRESIDING OVER THE START OF THE MOST RADICAL SHAKEUP IN JAPANESE POLITICS IN FOUR DECADES THE VICTORY CAPPED AN INTENSE WEEK OF NEGOTIATIONS IN WHICH MR HOSOKAWA PUT HIS POLITICAL FUTURE AT RISK THE REWARD A WEEKEND TELEVISION POLL GAVE THE PREMIER A 79 PUBLIC APPROVAL RATING BUOYED BY SUCH POPULARITY MR HOSOKAWA NOW HAS A STRONGER MANDATE TO FOCUS ON OTHER MATTERS INCLUDING NEXT MONTH'S SUMMIT WITH PRESIDENT CLINTON AND LONGDELAYED ACTION TO STIMULATE JAPAN'S SLUGGISH ECONOMY MR HOSOKAWA'S VICTORY BOOSTED THE NIKKEI STOCK AVERAGE WHICH ON MONDAY SOARED 96469 POINTS OR 5 TO CLOSE THE MORNING SESSION AT 1972257 THE MARKET SANK LAST WEEK IN FEAR OF FAILURE MR HOSOKAWA'S CABINET HAD PUT ECONOMIC POLICY ON HOLD DURING THE REFORM BATTLE MEASURES TO SPUR BUSINESS ACTIVITY CAN'T COME TOO SOON PETER MORGAN AN ECONOMIST AT MERRILL LYNCH IN TOKYO ESTIMATES THAT JAPAN'S GROSS DOMESTIC PRODUCT SHRANK AT AN ANNUAL RATE OF 42 IN THE OCTOBERTODECEMBER QUARTER HE THINKS A 10 TRILLION YEN STIMULUS PACKAGE WOULD ADD AS MUCH AS 18 PERCENTAGE POINTS OF GROWTH TO THE ECONOMY THE SOONER THE GOVERNMENT ANNOUNCES THE PACKAGE THE MORE IMPACT IT WILL HAVE SAID YOSHIO NAKAMURA AN ECONOMIST WITH KEIDANREN JAPAN'S LEADING BIGBUSINESS LOBBY US OFFICIALS MEANWHILE PRIVATELY CHEERED MR HOSOKAWA'S VICTORY HOPING HE NOW CAN TURN HIS ATTENTION TO STALLED USJAPAN TRADE TALKS JAPANESE GOVERNMENT OFFICIALS SAY THAT MR HOSOKAWA HAS SO FAR VIRTUALLY IGNORED THE PREPARATIONS FOR THE FEB 11 WASHINGTON SUMMIT LEAVING THE NEGOTIATIONS TO JAPAN'S BUREAUCRATS US OFFICIALS HOPE MR HOSOKAWA WILL START TWISTING THE ARMS OF JAPAN'S NEGOTIATORS MAKING THEM MORE RECEPTIVE TO US DEMANDS BUT MR HOSOKAWA AND OTHER LEADERS ARE HARDLY STRIKING A CONCILIATORY TONE WE'D LIKE TO TAKE MEASURES THAT ARE AS BOLD AS POSSIBLE TO COOPERATE WITH THE US ON THE MACRO LEVEL MR HOSOKAWA SAID AT A NEWS CONFERENCE SATURDAY ON THE MICRO LEVEL THERE ARE STILL CONFLICTS ON BASIC POINTS MR HOSOKAWA ADDED THAT ON SUCH POINTS WE HAVE TO TELL THE US FIRMLY WHERE OUR COUNTRY STANDS MR HOSOKAWA MAY NEED EVERY BIT OF HIS BOLSTERED STRENGTH AS HE TACKLES THESE ISSUES AS WELL AS THE DETAILS OF POLITICAL REFORM THE LAWS AIMED AT CLEANING UP JAPAN'S NOTORIOUS MONEY POLITICS WERE ADOPTED ONLY AFTER A LASTMINUTE BARGAIN WITH THE RELUCTANT OPPOSITION AND EVEN SUCH MEASURES AS AN INCOMETAX CUT COULD PROVE TROUBLESOME FOR HIS FRAGILE COALITION BECAUSE OF SHARP DISAGREEMENTS OVER HOW TO MAKE UP FOR THE LOST REVENUE STILL THIS WEEKEND'S VICTORY IS CONSIDERABLE MR HOSOKAWA TOOK OFFICE IN AUGUST PLEDGING TO CHANGE THE BASIC RULES OF JAPANESE POLITICS BUT THE REFORM BILLS SEEMED TO HIT A DEAD END WHEN REJECTED BY THE UPPER HOUSE OF PARLIAMENT ON JAN 21 MR HOSOKAWA REVIVED THE BILLS BY STRIKING A COMPROMISE WITH THE OPPOSITION LIBERAL DEMOCRATIC PARTY LATE FRIDAY THE DATE OF IMPLEMENTATION HASN'T YET BEEN SET HOWEVER WITH FORMAL LEGISLATIVE APPROVAL OF THE COMPROMISE PLAN STILL REQUIRED IN THE NEXT SESSION OF PARLIAMENT WHICH OPENS MONDAY PARLIAMENT ALSO WILL HAVE TO APPROVE THE NEW ELECTORAL MAP WHILE THE ORIGINAL IMPETUS FOR THE FIVEYEAR REFORM MOVEMENT WAS TO END POLITICAL CORRUPTION IT ISN'T CLEAR THE NEW LAWS WILL ACHIEVE THAT ACCORDING TO ONE TELEVISION POLL ONLY 14 OF THE RESPONDENTS SAID THEY THOUGHT THE ANTICORRUPTION MEASURES WENT FAR ENOUGH THE BILL DOESN'T ANSWER AT ALL PUBLIC CALLS FOR AN IMMEDIATE END TO THE CLOSE TIES BETWEEN BUSINESS AND POLITICS THAT HAVE BECOME SUCH A HOTBED OF CORRUPT MONEY POLITICS COMPLAINED AN EDITORIAL IN THE MAINICHI SHIMBUN A MAJOR JAPANESE DAILY MR HOSOKAWA'S ORIGINAL PROPOSAL WAS TO BAN CORPORATE CONTRIBUTIONS TO POLITICIANS UNDER THE COMPROMISE WITH THE LDP THE BAN WILL TAKE EFFECT AFTER FIVE YEARS IN THE MEANTIME CORPORATIONS' DONATIONS WILL BE LIMITED TO ONE POLITICAL ORGANIZATION PER POLITICIAN THE LAWS ALSO PROVIDE PUBLIC FINANCING FOR PARTIES BUT TO MANY OF THE REFORMERS THE REAL POINT WASN'T TO CURB GRAFT BUT TO END THE OUTMODED PARTY STRUCTURE WHICH THEY SAID STIFLED ECONOMIC AND FOREIGN POLICY THE NEW SYSTEM GIVES MORE EMPHASIS TO LONGUNDERREPRESENTED URBAN AREAS IT ALSO REPLACES JAPAN'S SYSTEM OF MULTISEAT DISTRICTS WITH A COMBINATION OF SINGLESEAT DISTRICTS AND SEATS CHOSEN BY REGIONAL PROPORTIONAL REPRESENTATION VOTES UNTIL ITS COLLAPSE LAST SUMMER THE LDP HAD RUN JAPAN FOR 38 YEARS BY CHANGING THE NATURE OF ELECTIONS WE ARE GOING TO HAVE SOMETHING MORE LIKE A TWOPARTY SYSTEM SAID IKUO KABASHIMA A PROFESSOR OF POLITICAL SCIENCE AT TSUKUBA UNIVERSITY COMPETITION WILL BECOME MUCH MORE KEEN MOST POLITICIANS EXPECT A TRANSITIONAL PERIOD OF POLITICAL INSTABILITY AS THE NEW PARTIES AND ALLIANCES EMERGE THIS COULD TAKE TWO OR THREE ELECTIONS MR KABASHIMA ADDED IN THEIR CRUSADE TO CREATE A NEW POLITICAL ORDER MR HOSOKAWA AND HIS STRATEGISTS SUCCEEDED BY MANIPULATING THE FEARS AND AMBITIONS OF THE BIGGEST OPPONENTS OF REFORM THE LDP AND THE SOCIALISTS THE TWO POLES OF THE OLD POLITICAL STRUCTURE MR HOSOKAWA WOOED THE SOCIALISTS DURING THE SUMMER BY TAKING THEM INTO HIS GOVERNMENT GIVING THEM CABINET POSTS FOR THE FIRST TIME IN DECADES AND PROPOSING A NEW ELECTORAL SYSTEM THAT WOULD FAVOR THAT PARTY BUT THE BILLS STALLED BECAUSE THE HARDCORE SOCIALISTS OPPOSED THEM SO MR HOSOKAWA LAST WEEK REVERSED COURSE AND REWROTE THE PACKAGE MAKING IT MORE BENEFICIAL TO THE LDP STILL THE LDP WHICH BUILT ITSELF AROUND THE OLD RULES FACES A DIFFICULT RESTRUCTURING UNDER ANY SORT OF ELECTORAL CHANGE INDEED THE FUTURE OF BOTH THE LDP AND THE SOCIALISTS REMAINS IN QUESTION WITH BOTH PARTIES SPLIT BETWEEN REFORMERS AND ANTIREFORMERS RIGHT NOW THE CONVULSIONS WITHIN THE SOCIALIST PARTY ARE MORE SERIOUS THE SOCIALISTS ARE EXPECTED TO EXPEL THEIR ANTIREFORM DISSIDENTS SOON AN ACT THAT WOULD ROB THE COALITION GOVERNMENT OF ITS MAJORITY IN PARLIAMENT'S UPPER HOUSE THE SOCIALISTS ALSO ARE EXPECTED TO CAUSE TROUBLE OVER MR HOSOKAWA'S NEXT BIG DECISION THE TAX CUT THE POWERFUL FINANCE MINISTRY IS DEMANDING A CONSUMPTION TAX INCREASE TO MAKE UP FOR LOST REVENUES BUT THE SOCIALISTS ARE STAUNCHLY OPPOSED IF AS MOST OBSERVERS EXPECT MR HOSOKAWA AGREES TO SOME SORT OF TAX INCREASE THE POSSIBILITY IS QUITE HIGH THAT THE SOCIALISTS WILL LEAVE THE COALITION SAID MINORU MORITA A POLITICAL COMMENTATOR THAT WOULD IN THE SHORT TERM AT LEAST MAKE MR HOSOKAWA DEPENDENT ON COOPERATION FROM THE OPPOSITION LDP SOME CRITICS ALREADY WERE EXPRESSING WORRY THAT MR HOSOKAWA AND THE LDP WERE BECOMING TOO CLOSE IF IT BECOMES A COMMON PRACTICE FOR MR HOSOKAWA AND LDP LEADERS TO MEET MR MORITA SAID IT WILL IN EFFECT CONSTITUTE A RETURN TO JAPAN'S WARTIME POLITICS WHEN ALL PARTIES UNITED THAT WOULD BE DANGEROUS 9401310008 940131 IMO INDUSTRIES POSTS LOSS OF 2456 MILLION FOR THE FOURTH PERIOD LAWRENCEVILLE NJ IMO INDUSTRIES INC SAID IT HAD A FOURTHQUARTER NET LOSS AFTER RECORDING A 168 MILLION ANTICIPATED LOSS ON DISPOSAL OF ITS ELECTROOPTICAL SYSTEMS INC BUSINESS THE DISPOSAL DECISION RESULTED IN A QUARTERLY LOSS OF 2456 MILLION OR 1452 A SHARE COMPARED WITH NET INCOME OF 333000 OR TWO CENTS A SHARE A YEAR EARLIER SALES DECLINED 24 TO 1531 MILLION FROM 2019 MILLION IMO WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRONIC AND MECHANICAL CONTROLS AND ENGINEERED POWER PRODUCTS SAID IT WILL TRIM ITS WORK FORCE BY MID1994 THE LATEST QUARTER INCLUDED A CHARGE OF 237 MILLION OR 140 A SHARE FOR RESTRUCTURING AND OTHER UNUSUAL ITEMS THE COMPANY RECORDED A 197 MILLION LOSS IN DISCONTINUED OPERATIONS INCLUDING THE ANTICIPATED ITEM IMO TOOK A 9 MILLION CHARGE TO ACCOUNT FOR ITS COSTCUTTING PLAN WHICH WILL ELIMINATE 700 JOBS OR 11 OF ITS WORK FORCE BY MID1994 LEAVING THE COMPANY WITH ABOUT 5800 EMPLOYEES THE COMPANY ADDED THAT IT WOULD SEEK A WAIVER FROM CERTAIN DEBTHOLDERS TO BORROW AN ADDITIONAL 35 MILLION FOR WORKING CAPITAL AND LETTERS OF CREDIT IMO SAID THE FOURTHQUARTER CHARGES VIOLATED CERTAIN LENDING COVENANTS FOR THE YEAR IMO REPORTED A LOSS OF 2706 MILLION OR 1602 A SHARE COMPARED WITH A LOSS OF 826 MILLION OR 490 A SHARE IN 1992 SALES DECLINED 13 TO 6417 MILLION FROM 7336 MILLION STANDARD & POOR'S CORP NOTING THE LARGE QUARTERLY LOSS AND VIOLATION OF FINANCIAL COVENANTS PLACED IMO'S LONGTERM DEBT UNDER REVIEW WITH NEGATIVE IMPLICATIONS ABOUT 300 MILLION OF DEBT IS AFFECTED S&P SAID IMO HAS AN IMPLIED SENIORDEBT RATING OF SINGLEBPLUS 9401310007 940131 BUSINESS BRIEF ARCO'S VASTAR UNIT SUBMITS SEC FILING FOR PUBLIC OFFERING LOS ANGELES ATLANTIC RICHFIELD CO'S VASTAR RESOURCES INC UNIT SAID IT FILED WITH THE SECURITY AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF AS MANY AS 1725 MILLION SHARES OR 177 OF STOCK OUTSTANDING RECENTLY CREATED VASTAR OPERATES ARCO'S MAJOR NATURALGAS PROPERTIES IN THE CONTIGUOUS 48 STATES AS WELL AS SOME RELATED OIL OPERATIONS ITS ASSETS DON'T INCLUDE ARCO'S VAST ALASKAN OPERATIONS BUT IN ITS OWN RIGHT VASTAR WOULD RANK AMONG THE LARGER US NATURALGAS PRODUCERS IN THE SEC FILING HOUSTONBASED VASTAR SAID THAT AT A MAXIMUM ANTICIPATED PRICE OF 30 A SHARE THE IPO MAY RAISE AS MUCH AS 5175 MILLION THE ACTUAL SALE PRICE IS LIKELY TO BE LOWER PROCEEDS FROM THE SALE WOULD GO TO ARCO WHICH WOULD RETAIN AN 823 STAKE IN VASTAR ASSUMING ALL STOCK OVERALLOTMENTS ARE SOLD VASTAR IS THE LARGEST OF FOUR UNITS CREATED LAST FALL BY ARCO TO OPERATE ITS OIL AND GAS HOLDINGS IN THE CONTINGUOUS 48 STATES THE OTHER UNITS HOLD THE COMPANY'S CALIFORNIA AND MIDWESTERN OILPRODUCTION INTERESTS VASTAR IS BELIEVED TO HAVE THE GREATEST GROWTH PROSPECTS IF MARKETS FOR NATURAL GAS TAKE OFF VASTAR SAID IN ITS FILING THAT ITS PROVED RESERVES TOTAL 21 TRILLION CUBIC FEET OF NATURAL GAS AND 99 MILLION BARRELS OF CRUDE OIL NATURALGAS CONDENSATES AND LIQUIDS IN THE FIRST NINE MONTHS OF LAST YEAR THE COMPANY'S DAILY NATURALGAS PRODUCTION AVERAGED 701 MILLION CUBIC FEET AND 44900 BARRELS OF PETROLEUM LIQUIDS IN 1992 HAD VASTAR BEEN IN EXISTENCE ITS OPERATIONS WOULD HAVE PRODUCED ABOUT 113 BILLION IN REVENUE AND NET INCOME OF 32 MILLION ATLANTIC RICHFIELD CO'S VASTAR RESOURCES INC UNIT WILL RECEIVE THE PROCEEDS FROM A PROPOSED INITIAL PUBLIC OFFERING OF AS MUCH AS 177 OF VASTAR STOCK OUTSTANDING AN ARTICLE YESTERDAY INCORRECTLY STATED THAT ARCO WOULD RECEIVE THE PROCEEDS 9401310006 940131 LETTERS TO THE EDITOR SPEECH CODES BIGOTRY AND FIRST AMENDMENT WHILE I ENJOYED CAMPUS SPEECH CODES PAGE ONE DEC 22 WHICH REPORTED ON THE TREND AWAY FROM SUCH CODES I WISH TO OFFER TWO CLARIFICATIONS FIRST THE ARTICLE REFERS TO A 1992 US SUPREME COURT DECISION THAT REGARDED A RACIALLY MOTIVATED CROSSBURNING AS PROTECTED SPEECH THAT DECISION RAV V ST PAUL DID NOT CONCLUDE AS YOUR ARTICLE SUGGESTED THAT THE FIRST AMENDMENT PROTECTS BIGOTS WHO BURN CROSSES AGAINST PROSECUTION IN ALL INSTANCES RATHER THE COURT CONCLUDED THAT THE PARTICULAR LAW USED TO PROSECUTE THE CROSSBURNERS IN ST PAUL RESTRICTED THE CONTENT OF SPEECH WITHOUT HAVING A COMPELLING BASIS FOR DOING SO AND WAS THEREFORE IN VIOLATION OF THE FIRST AMENDMENT HAD THE STATUTE BEEN MORE CAREFULLY DRAFTED SO THAT IT RESTRICTED ONLY THE TIME PLACE OR MANNER OF THE SPEECH THE MEANS OF EXPRESSION RATHER THAN THE IDEA EXPRESSED BY THE SPEECH THEN IT MIGHT HAVE BEEN UPHELD AS CONSTITUTIONAL SECOND IN DISCUSSING THE BATTLES RAGING OVER CAMPUS SPEECH CODES YOUR REPORTER NEGLECTED THE IMPORTANT DISTINCTION BETWEEN CODES ENFORCED BY PUBLIC AS OPPOSED TO PRIVATE UNIVERSITIES THE FIRST AMENDMENT'S LIMITATIONS APPLY TO THE GOVERNMENT A STATE OR CITY COLLEGE OR UNIVERSITY CREATED AND ADMINISTERED BY THE GOVERNMENT MAY NOT RESTRICT WHAT STUDENTS SAY WITHOUT SATISFYING THE SAME STRINGENT TEST APPLIED BY THE COURTS TO A LEGISLATURE'S ATTEMPT TO RESTRICT A PERSON'S SPEECH PRIVATE UNIVERSITIES ON THE OTHER HAND ARE NOT NECESSARILY SUBJECT TO CONSTITUTIONAL LIMITATIONS IT DEPENDS UPON THE DEGREE TO WHICH THEY INTERACT WITH OR ARE DEPENDENT UPON THE GOVERNMENT IN THEIR OPERATIONS 9401310005 940119 BUSINESS & RACE BY LEON E WYNTER CONTRARY TO POPULAR BELIEF DOUBLE MINORITIES BLACK WOMEN DON'T NECESSARILY HAVE AN ADVANTAGE IN THE WORKPLACE RESEARCHERS SAY THAT'S PARTICULARLY TRUE FOR MANAGERS SAYS AUDREY MURRELL A PROFESSOR AT THE UNIVERSITY OF PITTSBURGH'S BUSINESS SCHOOL HER STUDY OF US CENSUS FIGURES AND OTHER DATA SHOWS THAT BLACK WOMEN DON'T GET AN EXTRA BOOST FROM COMPANY EMPLOYMENT POLICIES FAVORING MINORITIES AND FEMALES IN FACT SHE SAYS IT TAKES 10 MONTHS FOR BLACK WOMEN TO EARN WHAT WHITE FEMALES AND BLACK MALES MAKE IN EIGHT MONTHS AND WHITE MALES EARN IN SIX MONTHS THE PAY GAP STEMS FROM WOMEN'S OVERREPRESENTATION IN LOWERPAYING SERVICE JOBS AS WELL AS BLACK EMPLOYEES' TENDENCY TO BE AT THE BOTTOM OF CORPORATE ORGANIZATIONAL CHARTS SAYS MS MURRELL A PROFESSOR OF ORGANIZATIONAL BEHAVIOR THE DOUBLE WHAMMY DIVIDES BLACK AND WHITE WOMEN IN THE WORKPLACE SAYS ELLA BELL OF MIT'S SLOAN SCHOOL OF MANAGEMENT IN A STUDY OF FEMALE MANAGERS SHE FOUND THAT BLACK RESPONDENTS FELT MORE ISOLATED AND THAT THEY HAD LESS ORGANIZATIONAL SUPPORT THAN WHITE WOMEN WHITE RESPONDENTS WERE MORE LIKELY TO BELIEVE THAT THEIR FIRM HAD A STRONG COMMITMENT TO ADVANCE WOMEN AND MINORITIES THAN DID THEIR BLACK COUNTERPARTS BLACK WOMEN SENSITIVE TO HISTORICAL IMAGES OF SEXUAL SUBSERVIENCE TO POWERFUL WHITE MEN SHY AWAY FROM WHITE MALE MENTORS ADDS MS BELL SEXUALITY IS AN ISSUE FOR ALL WOMEN BUT IT'S HARDER FOR BLACK WOMEN TO DEBUNK THE MYTHOLOGY ABOUT WHO THEY ARE SHE SAYS THE MEMORY OF REGINALD F LEWIS MAY GET THE KIND OF PUBLIC ATTENTION THE BLACK WALL STREET DEALMAKER AVOIDED DURING HIS LIFETIME TODAY THE FIRST ANNIVERSARY OF HIS DEATH AT AGE 50 A LARGERTHANLIFESIZED WAX SCULPTURE OF MR LEWIS WILL BE UNVEILED IN BALTIMORE'S GREAT BLACKS IN WAX MUSEUM ALONG WITH A 40FOOT MURAL DEPICTING THE 1987 LEVERAGED BUYOUT THAT CREATED HIS TLC BEATRICE INTERNATIONAL HOLDINGS STILL BY FAR THE LARGEST BLACKOWNED COMPANY THE WORKS WILL INAUGURATE A PAVILION NAMED FOR THE LATE BALTIMORE NATIVE A FAMILYAUTHORIZED BIOGRAPHY INCLUDING MATERIAL WRITTEN BY MR LEWIS IS SCHEDULED TO BE PUBLISHED NEXT FALL IN JUST A FEW YEARS MR LEWIS ECLIPSED THE 50YEAR DYNASTY OF EBONY MAGAZINE PUBLISHER JOHN H JOHNSON IN THE IMAGINATIONS OF YOUNGER BLACK BUSINESS PEOPLE SAYS FINANCIAL WRITER TONY CHAPELLE JOHNSON PUBLISHING TOPPED BLACK ENTERPRISE MAGAZINE'S ANNUAL RANKING OF BLACKOWNED BUSINESSES BY SALES FROM THE LIST'S INCEPTION IN 1971 UNTIL TLC BEATRICE JOINED IT IN 1987 ON LAST JUNE'S LIST TLC BEATRICE REPORTED 16 BILLION IN SALES COMPARED WITH 274 MILLION FOR JOHNSON PUBLISHING HE IS A SYMBOL A PLAYER WHERE WE NEVER HAD ANY OTHER PLAYERS SAYS MR CHAPELLE UNFORTUNATELY THERE HASN'T BEEN ANOTHER BLACK DEALMAKER TO BUY INTO THE FORTUNE 1000 WE'RE LOOKING FOR ANOTHER SUPERSTAR HE ADDS BEATRICE SPOKESMAN BUTCH MILEA SAYS THE FIRM STILL GETS NUMEROUS REQUESTS FOR INVESTMENTS DONATIONS AND JOBS FROM AFRICANAMERICANS A LOT OF THEM STILL ADDRESSED TO REG LOS ANGELES TIMES REPORTERS ARE SUPPOSED TO STAY AWAY FROM WASPS HISPANICS AND THE INNER CITY AT LEAST IN THEIR COPY THE PAPER'S NEW GUIDE DEFINING HOW RACERELATED WORDS SHOULD BE USED HAS DRAWN SNICKERS IN THE NEWSROOM BUT TIMES' EDITORS ARGUE THAT SENSITIVITY TO CHANGING USAGE IS A SERIOUS CONCERN IF YOU WRITE ABOUT LOS ANGELES AND TALK ABOUT A GHETTO' AREA I DEFY YOU TO DEFINE WHERE ONE STARTS AND STOPS OR WHERE THEY ARE SAYS TERRY SCHWADRON DEPUTY MANAGING EDITOR SIMILARLY INNER CITY DENOTING A POOR BLACK OR HISPANIC AREA OFTEN IS GEOGRAPHICALLY INACCURATE IN SPRAWLING CITIES MR SCHWADRON SAYS AND WASP FOR WHITE ANGLOSAXON PROTESTANT MAY BE BECOMING PEJORATIVE ACCORDING TO THE GUIDE THE MOVE IS SEEN AS A SIGNIFICANT RESPONSE BY A MAJOR NEWSPAPER TO THE SHIFTING DEMOGRAPHICS OF THE NATION'S NO 2 METROPOLITAN AREA HISPANICS BLACKS AND ASIANAMERICANS COMPRISE ABOUT HALF THE 14 MILLION LOS ANGELES AREA RESIDENTS ACCORDING TO CENSUS FIGURES THE TIMES USES LATINO FOR SPANISHSURNAMED GROUPS BECAUSE IT IS PREFERRED OVER HISPANIC BY MEXICANAMERICANS THE LARGEST SUCH GROUP IN THE SOUTHWEST MOST NEWSPAPERS INCLUDING THE WALL STREET JOURNAL USE HISPANIC FOLLOWING THE CENSUS BUREAU DESIGNATION I HAVEN'T HEARD ANY COMPELLING ARGUMENTS FOR CHANGING IT SAYS PAUL MARTIN SR EDITOR OF THE JOURNAL'S STYLE BOOK PARTS OF THE TIMES' GUIDE ARE A BIT SILLY SAYS TIMES ASSISTANT EDITOR LINDA WILLIAMS WHO IS BLACK BUT MOST OF IT MAKES GOOD SENSE IT'S SUPPOSED TO MAKE PEOPLE THINK ABOUT WHAT THEY'RE WRITING VALUING DIVERSITY IS A UNIQUELY AMERICAN IDEA THAT MAY NOT TRAVEL WELL ASKED BY AT&T TO STUDY RACE AND GENDER ISSUES IN OVERSEAS WORKPLACES NEW YORK CONSULTANTS CORNELIUS GROVE AND WILLA HALLOWELL FOUND THE VALUES THAT GIVE IMPETUS TO DIVERSITY ISSUES HERE DON'T NECESSARILY EXIST ABROAD SAYS MR GROVE BASED ON INTERVIEWS WITH AT&T MANAGERS AND EXECUTIVES THE TWO REPORT THAT OTHER SOCIETIES VIEW ETHNIC DIFFERENCES AS AN APPROPRIATE BASIS FOR ASSIGNING WORKPLACE ROLES IN MEXICO FOR EXAMPLE AN AMERICAN MANAGER SHOULDN'T EXPECT TO FIND INDIGENOUS INDIANS IN MANAGEMENT POSITIONS WHICH ARE CONTROLLED BY EUROPEAN DESCENDANTS IN JAPAN IT TOOK AN AT&T MANAGER MONTHS TO GET JAPANESE MANAGERS TO TALK TO KEY EAST INDIAN EMPLOYEES MS HALLOWELL SAYS IN THE JANUARY ISSUE OF THE NEWSLETTER CULTURAL DIVERSITY AT WORK THE CONSULTANTS ADVISE AMERICAN MANAGERS ABROAD TO VALUE EQUALITY WITHOUT JUDGING CULTURAL NORMS BLACK ENTERPRISE MAGAZINE HAS BEEN RANKING THE NATION'S BLACKOWNED COMPANIES BY SALES SINCE 1973 NOT 1971 AS STATED IN THE JAN 19 BUSINESS & RACE COLUMN ALSO JOHNSON PUBLISHING CO TOPPED THE LIST FROM 1984 TO 1987 NOT 1971 TO 1987 AS STATED IN THE COLUMN 9401310004 940131 INTERNATIONAL AIR INTER GROUNDS AIRBUS A330S CITING LANDINGGEAR GLITCH SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH DOMESTIC AIRLINE AIR INTER SAID IT IS SUSPENDING OPERATIONS OF ITS NEW AIRBUS A330 JET BECAUSE OF REPEATED PROBLEMS WITH THE AIRCRAFT'S LANDING GEAR AIR INTER IS THE LAUNCH CUSTOMER FOR THE A330 THE LATEST ADDITION TO THE AIRBUS INDUSTRIE FAMILY OF COMMERCIAL JETS THE A330 IS A TWINENGINE SISTER OF THE EUROPEAN CONSORTIUM'S LONGRANGE FOURENGINE A340 COMMERCIAL JET AIR INTER A SUBSIDIARY OF STATEOWNED AIR FRANCE SAID IT WOULD HALT A330 OPERATIONS UNTIL ALL THE PROBLEMS RAISED BY THESE EVENTS HAVE BEEN COMPLETELY ANALYZED AND SORTED OUT BY AIRBUS AIRBUS IS A CONSORTIUM AMONG AEROSPATIALE OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AEROSPACEAIRBUS GMBH OF GERMANY BRITISH AEROSPACE PLC AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AIR INTER TOOK DELIVERY OF ITS FIRST A330 AT THE END OF LAST YEAR AND PUT IT INTO SERVICE IN MIDJANUARY ON ITS PARISTOULOUSE AND PARISMARSEILLE ROUTES THE AIRCRAFT'S LANDING GEAR FAILED TO RETRACT AFTER TAKEOFFS ON JAN 18 AND 19 AND THE AIRCRAFT WAS TAKEN OUT OF SERVICE FOR MAINTENANCE A SIMILAR INCIDENT OCCURRED ON FRIDAY THE A330 HAS THE SAME LANDING GEAR AS THE A340 WHICH HASN'T EXPERIENCED SUCH PROBLEMS AIR INTER HAS ORDERED FIVE A330S TO BE DELIVERED IN THE NEXT YEAR OVERALL AIRBUS INDUSTRIE HAS BOOKED 118 ORDERS FOR A330S FROM 14 CUSTOMERS BUT ONLY ONE HAS BEEN DELIVERED SO FAR THE NEXT PLANES SCHEDULED FOR DELIVERY WILL ALSO GO TO AIR INTER A SPOKESMAN FOR AIRBUS INDUSTRIE SAID OBVIOUSLY WE'RE GOING TO TAKE A CLOSE LOOK AT THE AIRCRAFT IN ORDER TO GET TO THE BOTTOM OF THE PROBLEM HE SAID ONE DIFFICULTY IS THAT THE PROBLEM IS INTERMITTENT AND DOESN'T OCCUR ON EACH TAKEOFF DOWTY AEROSPACE OF BRITAIN IS THE PRIME CONTRACTOR FOR THE A330'S LANDING GEAR ALONG WITH MESSIERBUGATTI SA OF FRANCE 9401310003 940131 INTERNATIONAL CRIMEA FAVORS PRORUSSIA LEADER BACKING SECESSION FROM UKRAINE MESHKOV VICTORY BOOSTS MOSCOWKIEV TENSIONS IMPERILS MISSILE ACCORD BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL SIMFEROPOL UKRAINE THE POTENTIAL FOR A CLASH BETWEEN RUSSIA AND UKRAINE SHARPENED YESTERDAY AS VOTERS IN UKRAINE'S AUTONOMOUS REPUBLIC OF CRIMEA SENT AN ANGRY SIGNAL THAT THEY WOULD RATHER TIE THEIR FUTURE TO THEIR TRADITIONAL OVERLORDS IN MOSCOW THAN TO KIEV WITH VOTES STILL BEING COUNTED IN THE RUNOFF ELECTION FOR CRIMEA'S NEWLY CREATED PRESIDENCY IT LOOKED LIKELY THAT VOTERS ON THIS PENINSULA IN UKRAINE HAD HANDED A BIG WIN TO A PRORUSSIAN SECESSIONIST CANDIDATE YURI MESHKOV AWAITING VICTORY IN HIS CAMPAIGN HEADQUARTERS AT THE SIMFEROPOL SOCIETY OF AFGHANISTAN VETERANS A LOW BUILDING DECORATED WITH THE BLUE WHITE AND RED CRIMEAN FLAG MR MESHKOV SAID THAT HIS AIM IN CAMPAIGNING TO BREAK FREE OF KIEV IS NOT TO LAUNCH CRIMEA INTO CONFLICT BUT TO SAVE OURSELVES FROM IT THOUGH THE STREETS OF SIMFEROPOL WERE QUIET TENSION HERE HAS BEEN EVIDENT DURING AN ELECTION CAMPAIGN IN WHICH AT LEAST FOUR POLITICAL FIGURES HAVE BEEN MURDERED INCLUDING THE SOLE TATAR DEPUTY TO CRIMEA'S PARLIAMENT A LOCAL DEPUTY OF UKRAINE'S PARLIAMENT AND SPOKESMAN FOR THE BLACK SEA FLEET WHICH IS BASED IN CRIMEA'S PORT OF SEVASTOPOL AND IS CLAIMED BY BOTH RUSSIA AND UKRAINE TO PROTECT HIMSELF FROM ATTACK MR MESHKOV HAS ENLISTED THE SERVICES OF MORE THAN A DOZEN BODYGUARDS WHO STROLL THE CRAMPED ROOMS OF THE AFGHAN VETERANS CLUB WEARING FLAK JACKETS AND CRADLING KALASHNIKOV RIFLES THE TALL TRIM 49YEAROLD MR MESHKOV SAYS HE WANTS TO UNHITCH THE CRIMEAN PENINSULA FROM UKRAINE'S POSTSOVIET ECONOMIC FREE FALL WHICH ON ITS CURRENT COURSE OF 90 MONTHLY INFLATION AND ZERO REFORM HE WARNS IS SPEEDING ALL UKRAINE TOWARD CHAOS AND CIVIL WAR MR MESHKOV'S PUBLISHED CAMPAIGN PLATFORM TAKES HIS POLICY A STEP FURTHER PROMISING CRIMEA A REFERENDUM THAT COULD LEAD TO THE RECREATION OF UNITY WITH RUSSIA UP NORTH IN THE UKRAINIAN CAPITAL OF KIEV PRESIDENT LEONID KRAVCHUK WAS THREATENING LAST WEEK THAT HE WOULD OVERRULE CRIMEA'S ELECTION RESULTS SHOULD THEY POINT TOWARD SECESSION THIS MOUNTING SHOWDOWN BETWEEN KIEV AND CRIMEA WAS AMONG THE REASONS THAT CENTRAL INTELLIGENCE AGENCY DIRECTOR JAMES WOOLSEY IN TESTIMONY BEFORE THE SENATE INTELLIGENCE COMMITTEE LAST WEEK PINPOINTED UKRAINE AND CRIMEA IN PARTICULAR AS A SITE OF POTENTIAL CRISIS THE FEAR IS THAT RUSSIA WHICH HAS BEEN INCREASINGLY PRONE TO MEDDLE IN ITS FORMER FELLOW SOVIET STATES MIGHT BACK A CRIMEAN BID FOR SECESSION FROM UKRAINE THIS WOULD SCOTCH THE DEAL SIGNED BY PRESIDENTS CLINTON YELTSIN AND KRAVCHUK IN MOSCOW EARLIER THIS MONTH FOR UKRAINE TO SHIP ITS NUCLEAR MISSILES TO RUSSIA FOR DISMANTLING BEHIND THE RISING TENSIONS LIES A TANGLED HISTORY IN WHICH THE POLITICAL FICTIONS THAT HELPED UNDERPIN SOVIET POWER HAVE WROUGHT TROUBLE IN THE POSTSOVIET REALM CRIMEA LONG PART OF RUSSIA WAS GIVEN TO UKRAINE IN 1954 BY SOVIET PREMIER NIKITA KHRUSHCHEV AS A TOKEN OF FRIENDSHIP IT WAS A MEANINGLESS GIFT AT THE TIME HAILED BY THE THENSOVIET UKRAINE AS A CLEAR ILLUSTRATION OF THE LIMITLESS TRUST AND SINCERE LOVE OF THE RUSSIAN PEOPLE FOR THE UKRAINIAN PEOPLE WHEN UKRAINE GAINED INDEPENDENCE IN 1991 THE REDRAWN BORDER SUDDENLY CAME TO LIFE TODAY SOME 70 OF CRIMEA'S PEOPLE CONSIDER THEMSELVES ETHNIC RUSSIANS STRANDED IN A UKRAINE DETERIORATING SO FAST THAT FROM HERE RUSSIA LOOKS RICH WE ARE PLUNGED INTO POVERTY RIGHT NOW SAID A MECHANICAL ENGINEER VIKTOR SIDORYENKO EXPLAINING WHY HE HAD JUST CAST HIS BALLOT AT A SIMFEROPOL POLLING STATION FOR MR MESHKOV ANOTHER VOTER JUST BEHIND HIM VALENTINA MOROZ SAYS SHE TOO VOTED FOR MR MESHKOV BECAUSE HER FORMER RUSSIAN RUBLE PENSION WAS ENOUGH TO LIVE ON TODAY SAYS MS MOROZ HER 500000 UKRAINIAN COUPONS A MONTH BUY ONLY BREAD AND MILK A VISIT TO MR MESHKOV'S RIVAL IN THE TWOMAN PRESIDENTIAL RUNOFF NYKOLA BAGROV THE PROUKRAINIAN SPEAKER OF THE CRIMEAN PARLIAMENT SUGGESTS WHY MANY CRIMEANS ARE DESPERATE ENOUGH TO RISK SUPPORTING MR MESHKOV'S SECESSIONIST PLATFORM SITTING IN HIS VAST PARLIAMENTARY OFFICE EQUIPPED WITH SEVEN TELEPHONES AND A 54VOLUME SET OF LENIN'S WORKS MR BAGROV HAS NO HOPE TO OFFER EVERYTHING I COULD DO FOR CRIMEA I HAVE DONE HE SAYS BLAMING THE HARD ECONOMIC SITUATION IN CRIMEA ON THE DRAGGING OF REFORMS IN KIEV AT LEAST SAYS MR BAGROV I WAS HONEST HE ADDS THE TIME WILL COME WHEN MESHKOV WILL HAVE TO ANSWER THE PEOPLE'S QUESTIONS THAT TIME MAY BE COMING THIS WEEK POISED TO TRY TO DELIVER ON HIS PROMISE OF A RETURN TO RUSSIA MR MESHKOV HAS BEGUN WAVERING SINCE WINNING 385 OF THE VOTE IN THE FIRST ROUND OF THE ELECTION TWO WEEKS AGO COMPARED WITH MR BAGROV'S 17 IN A FIELD OF SIX CANDIDATES MR MESHKOV HAS STOPPED TALKING ABOUT A STRAIGHT SWITCH OF ALLEGIANCE TO RUSSIA AND STARTED PLAYING UP A BID FOR ECONOMIC INDEPENDENCE I WOULD LIKE TO BRING THE RUBLE TO CRIMEA HE SAID YESTERDAY THE TIMING OF HIS PROMISED REFERENDUM MR MESHKOV EXPLAINED WILL DEPEND ON THE SITUATION AFTER THE ELECTION INCLUDING KIEV'S REACTION EARLIER MR MESHKOV HAD SAID HE MIGHT HOLD THE REFERENDUM MARCH 27 TO COINCIDE WITH UKRAINE'S PARLIAMENTARY ELECTIONS FOR RUSSIA WATCHING THE RIFTS GROW EVER WIDER IN UKRAINE THE HOPE SEEMS TO BE THAT CRIMEA WILL COME MOSCOW'S WAY WHETHER MR MESHKOV BACKPEDALS OR NOT BRINGING WITH IT THE BLACK SEA FLEET SPEAKING TO THE RUSSIAN PARLIAMENT LAST WEEK THE CHAIRMAN OF THE STATE DUMA'S COMMITTEE FOR COMMONWEALTH OF INDEPENDENT STATES AFFAIRS KONSTANTIN ZATULIN SAID NOBODY WANTS TO STEAL CRIMEA FROM UKRAINE OVERNIGHT 9401310002 940131 WASTE CONCERNS TO SEEK RELIEF FROM KILNS PETITION TO EPA ASKS BAN ON HAZARDOUS MATERIALS BURNED BY CEMENT FIRMS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE COMPANIES INTENSIFYING THEIR EFFORTS TO WIN BACK BUSINESS LOST TO CEMENTMAKING KILNS PLAN TO PETITION THE ENVIRONMENTAL PROTECTION AGENCY TODAY TO PREVENT HAZARDOUSWASTE BURNING AT SIX KILNS AND TWO OTHER PLANTS THE MOVE WHICH COULD LEAD TO A FEDERAL LAWSUIT AGAINST THE EPA IF THE AGENCY DOESN'T ACT ON THE PETITION REFLECTS THE GROWING DISTRESS IN THE WASTE INDUSTRY IT ALSO ILLUSTRATES THE INCREASING ROLE OF THE EPA NOT ONLY AS AN ENVIRONMENTAL REGULATOR BUT AS REFEREE IN BILLIONDOLLAR BUSINESS DISPUTES A JOB THE AGENCY IS MUCH LESS COMFORTABLE WITH THE ENVIRONMENTALSERVICES INDUSTRY AND OTHER INDUSTRIES THE EPA REGULATES SUCH AS PAPERMAKING AND HEAVY MANUFACTURING ARE BY THEIR NATURES CAPITAL INTENSIVE REQUIRING HUGE INVESTMENTS THAT CAN BE IMPERILED BY CHANGES IN REGULATION COMPANIES SUCH AS WMX TECHNOLOGIES INC WESTINGHOUSE ELECTRIC CORP UNION PACIFIC CORP AND ROLLINS ENVIRONMENTAL SERVICES INC COLLECTIVELY SPENT HUNDREDS OF MILLIONS OF DOLLARS IN RECENT YEARS TO BUILD AND WIN PERMITS FOR HAZARDOUSWASTE INCINERATORS THOSE WERE SPECIFICALLY BUILT TO BURN HAZARDOUS WASTE BY CONTRAST THE KILN OPERATORS LEARNED TO BURN HAZARDOUS WASTE ALONG WITH THE HUGE AMOUNTS OF FUEL THEY USE THUS LOWERING THEIR OVERALL FUEL COSTS THE EPA INTENDED TO FORCE INCREASING AMOUNTS OF TOXIC WASTES TOWARD THE INCINERATORS BUT QUITE UNEXPECTEDLY MAJOR INDUSTRIAL COMPANIES FOUND WAYS TO SHARPLY REDUCE THE WASTES THEY GENERATE AND CEMENT KILNS HAVE TAKEN EVER MORE OF THE REMAINING WASTES PRICES IN THE BUSINESS HAVE PLUNGED THE EPA CONTRIBUTED TO THIS MESS BY OVERESTIMATING FUTURE WASTE VOLUMES AND WORRYING PUBLICLY THAT A SHORTAGE OF DISPOSAL CAPACITY LOOMED AHEAD EVEN AS A GLUT WAS DEVELOPING THAT REVERSAL WAS RESPONSIBLE FOR MOST OF A 550 MILLION PRETAX CHARGE AT A WMX UNIT LAST YEAR AS IT WROTE DOWN THE VALUE OF INCINERATORS AND GENERALLY DEPRESSED RESULTS AMONG OPERATORS OF HAZARDOUSWASTE INCINERATORS IN A MEETING LAST NOVEMBER OFFICIALS OF THESE COMPANIES TOLD EPA ADMINISTRATOR CAROL BROWNER THAT BASED ON CURRENT VOLUMES THEY HAD OVERINVESTED BY ABOUT 280 MILLION OR 140000 TONS A YEAR OF INCINERATOR CAPACITY THAT MEETING AT WHICH EXECUTIVES ASKED MS BROWNER FOR HELP BY PUSHING A WIDER VARIETY OF WASTES TOWARD INCINERATION AND BY CRACKING DOWN ON LESSREGULATED KILNS HASN'T PRODUCED ANY NOTICEABLE RESULTS SINCE AN ANNOUNCEMENT LAST MAY THAT SHE WOULD BE TAKING A TOUGHER STANCE TOWARD HAZARDOUSWASTE BURNING MS BROWNER HAS HAD AGENCY OFFICIALS STUDYING THE BUSINESS THE PETITION IS BEING FILED BY AN INDUSTRY GROUP THE HAZARDOUS WASTE TREATMENT COUNCIL AND BY ABOUT 10 LOCAL ENVIRONMENTAL GROUPS THAT HAVE BEEN FIGHTING THE KILNS AND OTHER PLANTS TARGETED IN THE FILING THE PETITION TARGETS PLANTS IN MICHIGAN CALIFORNIA MISSOURI TEXAS OKLAHOMA INDIANA AND LOUISIANA THAT EITHER CURRENTLY BURN HAZARDOUS WASTES OR HAVE INDICATED THAT THEY MAY BEGIN DOING SO SOON THE FILING A COPY OF WHICH WAS PROVIDED TO THE WALL STREET JOURNAL ASKS THE EPA TO PREVENT THESE PLANTS FROM BURNING HAZARDOUS WASTES ALLEGING THEY LACK PROPER PERMITS AND OTHER VIOLATIONS GENERALLY THE KILNS ARE LESS REGULATED THAN HAZARDOUSWASTE INCINERATORS KILN OPERATORS CONTEND THEY BURN WASTES RESPONSIBLY EPA OFFICIALS COULDN'T BE REACHED OVER THE WEEKEND SINCE LATE LAST YEAR THEY HAVE DECLINED TO COMMENT ON THE WASTE COMPANIES' LOBBYING EFFORT AND ON THEIR SPECIFIC ENFORCEMENT PLANS 9401310001 940131 PEPPERAND SALT YOU START ME TALKING OR THE ONE THEY COULD HAVE BOUGHT STEROID AFTERMATH BRAWN DAMAGE 9401280211 940128 POTOMAC WATCH DOLE AGONISTES A STRATEGY FOR BEATING BILL BY PAUL A GIGOT PRESIDENT CLINTON HAILED RICHARD NIXON AS HIS HEALTH CARE ALLY TUESDAY NIGHT BUT THE NEXT DAY THE FORMER PRESIDENT STOPPED BY CAPITOL HILL FOR A LUNCH IN HIS HONOR SPONSORED BY SEN BOB DOLE I'M FOR THE DOLE BILL THE OLD GOP PRINCE SAID LATER TO A WANDERING TV CAMERA WHATEVER IT IS I'M FOR IT BOB DOLE RELATES THAT STORY WITH JUST A HINT OF GLEE AS IF HE'S RELISHING EVEN THAT SMALL VICTORY OVER A NEWLY CONFIDENT REVIVED BILL CLINTON THE SENATE MINORITY LEADER DOESN'T YET HAVE HIS OWN HEALTH BILL BUT HE DOES HAVE A STRATEGY FOR BEATING MR CLINTON'S TO MAKE IT WORK HE NEEDS AT LEAST 41 SENATE REPUBLICANS UNITED AGAINST THE CLINTON PLAN ENOUGH TO IMPLY A FILIBUSTER IF WE'RE GOING TO BE PLAYERS WE HAVE TO STAY ON THE SAME SHIP HE SAYS WE'RE NOT THERE YET MR NIXON'S REAPPEARANCE IS ESPECIALLY APT BECAUSE BILL CLINTON WANTS TO DO AGAIN TO REPUBLICANS WHAT DEMOCRATS DID TO THEM BACK IN THE NIXONIAN 1960S AND 1970S THE MODEL IS THE POLITICS OF THE GREAT SOCIETY DEMOCRATS PROPOSED BILLS AND REPUBLICANS REPLIED NOT WITH PRINCIPLED OPPOSITION BUT WITH WHAT THEY CALLED CONSTRUCTIVE REPUBLICAN ALTERNATIVE PROPOSALS DEMOCRATS QUICKLY TURNED THAT INTO A PUNGENT ACRONYM LBJ TRIUMPHED BY PEELING OFF ENOUGH FEARFUL REPUBLICANS WHO GOT NO POLITICAL CREDIT IN ANY EVENT LAST FALL REPUBLICANS SEEMED POISED FOR ANOTHER SUCH RITUAL SUICIDE THEIR CONSTRUCTIVE ALTERNATIVES SPROUTED HILLARY WAS HAILED EVEN MR DOLE TREADED LIGHTLY ON A CLINTON PLAN THAT WOULD BE THE LARGEST GOVERNMENT INTRUSION INTO PRIVATE LIFE SINCE MR NIXON IMPOSED WAGE AND PRICE CONTROLS BUT SLOWLY THE GOP HAS BEGUN TO UNDERSTAND THE STAKES MR DOLE SAYS HE SAW GROWING OPPOSITION BACK HOME IN KANSAS BUT HE CAN ALSO READ POLLS APPROVAL FOR CLINTONCARE HAS FALLEN TO 4239 IN JANUARY FROM 5118 IN SEPTEMBER ACCORDING TO THE LATEST WALL STREET JOURNAL/NBC SURVEY MORE REVEALING YET THOSE WHO HAVE HEALTH INSURANCE NOW OPPOSE THE CLINTON PLAN 42 TO 39 AND THE INSURED TEND TO VOTE WITH AN EYE ON 1996 MR DOLE HAS ALSO WATCHED HIS POTENTIAL ADVERSARIES OUTFLANK HIM ON THE RIGHT FIRST TEXAS SEN PHIL GRAMM ASSAILED CLINTONCARE AS THE SOCIAL ENGINEERING IT IS THEN DICK CHENEY ENDORSED THE ANALYSIS BY STRATEGIST BILL KRISTOL THAT THERE REALLY IS NO HEALTH CARE CRISIS SO CLINTON RADICALISM IS UNNEEDED AND DANGEROUS MR DOLE HAS NOW DECIDED TO LEAD THIS LINE OF ATTACK MR DOLE ASSUMES THE STATE OF THE UNION AFTERGLOW WILL BUOY THE CLINTON PLAN FOR A WHILE THEN DEMOCRATS WILL RAMROD SOMETHING THROUGH THE HOUSE ON A PARTISAN VOTE BUT AS THE FACTS BECOME BETTER KNOWN THE PLAN'S POPULARITY WILL FADE ABOUT THAT TIME THE BILL WILL HIT THE SENATE FINANCE COMMITTEE WHERE MR DOLE AND ONLY AN 119 DEMOCRATIC ADVANTAGE AWAIT ALSO WAITING IS DEMOCRATIC CHAIRMAN PAT MOYNIHAN WHO HAS SAID THAT NO HEALTH REFORM WILL PASS THAT BOB DOLE HASN'T APPROVED BUT ONLY IF 41 REPUBLICANS ARE UNITED WILL THEY HAVE THE LEVERAGE TO WORK WITH MODERATE DEMOCRATS AND PURGE CLINTONCARE'S PRICE CONTROLS BUSINESS MANDATES AND VAST BUREAUCRACIES I THINK WE CAN DO IT MR DOLE SAYS ADDING THAT IT MAY BE A LITTLE BRASS KNUCKLES BY THAT HE MEANS HE MAY HAVE TO PERSUADE SOME OF HIS LESS PRINCIPLED COLLEAGUES JOHN CHAFEE THE RHODE ISLAND LIBERAL IS ALREADY NERVOUS ABOUT THE NEW DOLE STRATEGY HE'S ON BILL AND HILLARY'S SCHMOOZE LIST WITH ONLY 44 SENATE SEATS AND VERMONT'S JAMES JEFFORDS ALREADY A SELLOUT MR DOLE MAY HAVE TO STRANGLE THE DRIFTERS TO PEEL OFF MR CHAFEE AND OTHERS THE WHITE HOUSE WILL TRY TO FRAME THE CHOICE AS ITS REFORM FOR HEALTH CARE OR NOTHING MR DOLE'S SENSIBLE REPLY IS TO ASK REPUBLICANS TO RALLY AROUND A SINGLE BILL SIMILAR TO THE ONE INTRODUCED IN 1991 BY MR CLINTON'S OWN TREASURY SECRETARY LLOYD BENTSEN THIS WOULD REFORM THE HEALTH INSURANCE MARKET ALLAYING THE MIDDLECLASS ANXIETIES SUCH AS PORTABILITY THAT MR CLINTON LIKES TO EXPLOIT BUT WITHOUT ENDORSING A VAST LIBERAL EXPERIMENT MR DOLE ISN'T IMPRESSED WITH THE PRESIDENT'S THREAT TO VETO SUCH A NONRADICAL REFORM DO YOU REALLY THINK HE'S GOING TO VETO A BILL PASSED BY A DEMOCRAT CONGRESS HE ASKS IT MAY BE AN EMPTY THREAT DRAWING BRIGHT LINES ON HEALTH CARE IS ESPECIALLY VALUABLE TO REPUBLICANS NOW THAT MR CLINTON IS ERASING THEM ON CRIME AND WELFARE THE PARODY OF LIBERAL ACTIVISM THAT IS THE CLINTON PLAN IS ONE OF THE FEW OPENINGS DEMOCRATS ARE GIVING REPUBLICANS FOR NOVEMBER'S ELECTIONS EVEN MR CLINTON SEEMS TO UNDERSTAND THIS WEAKNESS BECAUSE ON TUESDAY HE WAS AT PAINS TO SAY WE NEED GUARANTEED PRIVATE INSURANCE EVEN AS HE TRASHED PRIVATE INSURERS BILL MCINTURFF A GOP POLLSTER SAYS THAT WHEN HE EXPLAINS CLINTONCARE DETAILS TO FOCUS GROUPS SOME PEOPLE SIMPLY DON'T BELIEVE THEM THEY SAY YOU CAN'T DO THAT IN AMERICA' THIS SUGGESTS AN OPENING FOR REPUBLICANS TO LIFT THEIR ARGUMENTS BEYOND HEALTH CARE DETAILS TO A BROADER VISION OF INDIVIDUAL LIBERTY BOB DOLE HAS EXCELLED AS A STRATEGIST BUT HE HAS YET TO PROVIDE SUCH A VISION TO COMPETE WITH MR CLINTON'S SECURITY STATE THIS YEAR HE'LL HAVE TO DO BOTH TO KEEP HIS 41 VOTES AND TO STAY IN THE RUNNING FOR THE PRESIDENCY 9401280210 940128 MCDONNELL GETS ISRAELI JET ORDER FOR 2 BILLION PACT TO SELL 20 F15S DEALS BAD BLOW TO LOCKHEED WHICH LOBBIED HARD BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP BEATING OUT ARCHRIVAL LOCKHEED CORP FOR A HOTLY CONTESTED FIGHTERJET ORDER WILL SELL 20 OF ITS F15 JETS TO ISRAEL FOR 2 BILLION THE SALE THE LARGEST ON THE INTERNATIONAL HORIZON FOR US ARMSMAKERS DEALT A HARSH BLOW TO LOCKHEED WHICH HAD CAMPAIGNED INTENSELY TO SELL 42 NEW VARIANTS OF ITS F16 FIGHTER TO ISRAEL AT SLIGHTLY LOWER TOTAL COST MILITARY AND INDUSTRY OFFICIALS SAID THE DEAL ALSO INCLUDES OPTIONS FOR ISRAEL TO BUY FIVE MORE F15 JETS FROM MCDONNELL DOUGLAS DELIVERIES SOME OF WHICH COULD BE SCHEDULED AS EARLY AS 1996 ARE EXPECTED TO RUN THROUGH 1999 GEN HERZL BODINGER HEAD OF THE ISRAELI AIR FORCE SAID THAT AMONG THE REASONS ISRAEL CHOSE THE TWOENGINE F15 WAS THAT IT CAN FLY WITHOUT REFUELING TO COUNTRIES LIKE IRAN IRAQ AND LIBYA WITH LARGE WEAPON LOADS EVEN DURING EXTREME WEATHER CONDITIONS AT MCDONNELL DOUGLAS HEADQUARTERS IN ST LOUIS MANAGERS WERE ECSTATIC THAT THEIR PLANE MARKETED THROUGH A RELATIVELY QUIET CAMPAIGN HAD PREVAILED AFTER SURVIVING A CHALLENGE FROM LOCKHEED THAT DELAYED THE SALE FOR MONTHS AFTER PERSONAL INTERVENTION BY LOCKHEED CHAIRMAN DANIEL TELLEP ISRAEL HAD AGREED TO CONSIDER A YETTOBEBUILT F16ES OR ENHANCEDSTRATEGIC VARIANT SUCH A MODEL OF THE SINGLEENGINE F16 COULD FLY FAR ENOUGH TO REACH POTENTIAL TARGETS AND WOULD HAVE MADE THE LOCKHEED JET MORE COMPETITIVE WITH THE F15 FOR ISRAELI NEEDS THOUGH IT ALSO STOOD TO MAKE THE PLANE MORE EXPENSIVE IN THE END LOCKHEED PULLED OUT ALL THE STOPS RUNNING LARGE ADVERTISEMENTS IN ISRAELI NEWSPAPERS AND OFFERING FINAL PRODUCTION OF THE JETS IN ISRAEL LOCKHEED ALSO MADE NO SECRET OF THE SUPPLIER CONTRACTS IT WOULD WITHDRAW FROM ISRAEL IF THE F16ES LOST LOCKHEED SAID IT DID NOTHING IMPROPER IN STUDYING HOW IT WOULD END THOSE CONTRACTS LOCKHEED THE CALABASAS CALIF AEROSPACE COMPANY THAT BOUGHT ITS F16 FIGHTER BUSINESS FROM GENERAL DYNAMICS CORP LAST YEAR ALREADY HAS HAD TO DRASTICALLY SLOW PRODUCTION BECAUSE OF ORDER CANCELLATIONS BY THE US AIR FORCE AND PAKISTAN BOTH MCDONNELL DOUGLAS AND LOCKHEED HAD CONCEDED THAT THE COMPETITION WAS ESPECIALLY IMPORTANT BECAUSE OF THE SHRINKING NUMBER OF LARGE SALE PROSPECTS EMERGING AT A TIME OF FALLING WORLDWIDE DEFENSE SPENDING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MCDONNELL DOUGLAS SHARES ROSE 2625 A SHARE OR 24 TO CLOSE AT 11150 WHILE LOCKHEED STOCK CLOSED UNCHANGED AT 6375 A SHARE AT LOCKHEED'S FIGHTER DIVISION IN FORT WORTH TEXAS DISAPPOINTED OFFICIALS RELEASED A STATEMENT SAYING THEY DON'T UNDERSTAND THE DECISION CRITERIA SINCE THEY APPARENTLY WEREN'T BASED ON PRICE OR PERFORMANCE THE COMPETITION WHICH HAS RAGED FOR MORE THAN A YEAR BEGAN AS A CONTEST BETWEEN THE MCDONNELL DOUGLAS F/A18 ATTACK JET AND A DIFFERENT F16 VARIANT BUT LOCKHEED LATER FOUND ITSELF SCRAMBLING TO COMPETE AGAINST THE F15 THE PREMIER FIGHTER OF THE US AIR FORCE ROBERT TRICE A MCDONNELL DOUGLAS VICE PRESIDENT SAID THAT PEOPLE WHO ARE SERIOUS AS BUYERS FAVOR F15S FOR OVERALL PERFORMANCE ONE FACTOR IN THE SALE LOOKS TO HAVE HAD LITTLE TO DO WITH PERFORMANCE COMPARISONS HOWEVER BY ORDERING THE F15 ISRAEL IS HELPING PRESERVE AN ORDER FOR 72 OF THE F15S BY SAUDI ARABIA THE SAUDIS UNDER FINANCIAL PRESSURE ARE NEGOTIATING TO RESTRUCTURE ARMS DELIVERIES FROM FIVE MAJOR US DEFENSE CONTRACTORS IT NOW APPEARS THE ISRAELI SALE WILL PERMIT A NEEDED SLOWDOWN IN SOME SAUDI DELIVERIES OF F15S SEVERAL YEARS FROM NOW JOEL JOHNSON VICE PRESIDENT INTERNATIONAL WITH THE AEROSPACE INDUSTRIES ASSOCIATION TRADE GROUP SAID THAT WITHOUT THE SAUDI BUY THERE ISN'T AN F15 LINE FOR THE ISRAELIS TO BUY FROM AND WITHOUT THE ISRAELI DECISION IT'S HARD TO FIGURE OUT THE SAUDI DELIVERY SCHEDULE AMY DOCKSER MARCUS AND THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9401280209 940128 BUSINESS BRIEF IOMEGA CORP PRICE CUT AND RESTRUCTURING SPURRED 4THQUARTER LOSS IOMEGA CORP A COMPUTERSTORAGE SUPPLIER REPORTED A FOURTHQUARTER LOSS OF 17 MILLION OR 115 A SHARE ON SALES OF 375 MILLION THE ROY UTAH COMPANY ATTRIBUTED THE LOSS TO A RESTRUCTURING CHARGE OF 126 MILLION MAINLY FOR ASSET WRITEDOWNS AND COSTS RELATED TO AN UNSPECIFIED NUMBER OF LAYOFFS AND THE ESTABLISHMENT OF RESERVES ASSOCIATED WITH CERTAIN PRODUCT LINES IOMEGA ALSO EXPECTS A LOSS IN 1994 NOTWITHSTANDING THE RESTRUCTURING IOMEGA REPORTED A PRETAX LOSS OF 38 MILLION IT BLAMED A 25 CUT EFFECTIVE SEPT 1 IN THE PRICE OF ITS BERNOULLI PRODUCTS FOR THE DECLINE A YEAR EARLIER IOMEGA EARNED 41000 ON SALES OF 375 MILLION FOR 1993 IOMEGA HAD A LOSS OF 145 MILLION OR 116 A SHARE ON SALES OF 147 MILLION FOR 1992 IT EARNED 47 MILLION OR 29 CENTS A SHARE ON SALES OF 139 MILLION 9401280208 940128 INDONESIAN GROUPS PLAN 900 MILLION APARTMENT PROJECT BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA THREE INDONESIAN BUSINESS GROUPS PLAN TO INVEST UP TO 900 MILLION IN A JAKARTA APARTMENT COMPLEX CONSISTING OF 48 TOWERS OF 24 STORIES EACH THE GROUPS PLAN TO BUILD THE KEMAYORAN GOLF APARTMENTS ON A SITE THAT WAS ONCE PART OF A FORMER AIRPORT IN NORTHEASTERN JAKARTA NEAR THE JAVA SEA THE GROUPS SIGNED A COOPERATION AGREEMENT WEDNESDAY WITH THE STATE AGENCY OVERSEEING DEVELOPMENT OF THE SITE THE APARTMENT COMPLEX WILL JOIN AN EXISTING TRADE EXHIBITION HALL IN WHAT THE AGENCY CALLS KEMAYORAN NEW CITY THE THREE INVESTORS ARE PT KEMAYORANLAND PART OF THE NAPAN GROUP PT SARI ORCHID PARAMA OF THE MANUFACTURING AND FINANCEBASED GADJAH TUNGGAL GROUP AND PT AMCOL AGUNGPERMANA WHICH DISTRIBUTES SONY PRODUCTS IN INDONESIA NAPAN GROUP WHICH HAS A PROPERTY ARM IS LED BY BUSINESSMAN HENRY PRIBADI WHO HAS OTHER VENTURES WITH TIMBER TYCOON PRAJOGO PANGESTU AND PRESIDENT SUHARTO'S SECOND SON BAMBANG TRIHATMODJO THE AMCOL DIRECTOR WHO SIGNED WEDNESDAY'S AGREEMENT SUGIANTO KUSUMA IS ALSO A COINVESTOR WITH MR BAMBANG IN A COMPANY APPOINTED BY THE GOVERNMENT TO OWN AND MANAGE INDONESIA'S NEW GENERATION OF PALAPA COMMUNICATIONS SATELLITES JF MA'ROEF EXECUTIVE DIRECTOR OF PT KEMAYORANLAND SAID PLANS CALL FOR THE INVESTORS TO EACH BUILD 16 TOWERS IN THE KEMAYORAN GOLF APARTMENTS PROJECT HE SAID EACH GROUP WILL LIKELY INVEST ABOUT 300 MILLION AND THAT CONSTRUCTION SHOULD BEGIN IN EARLY 1995 WITHIN FIVE YEARS HE SAID ALL OF THE TOWERS TOTALING MORE THAN 5000 UNITS SHOULD BE COMPLETED ONE JAKARTA PROPERTY CONSULTANT SAID THE COMPLEX IS AWFULLY AMBITIOUS AND IT'S VERY HARD TO SEE HOW THAT MANY UNITS WILL BE TAKEN UP MR MA'ROEF AGREED THE PROJECT IS AMBITIOUS BUT PREDICTED DEMAND FOR THE APARTMENTS WILL BE STRONG JAKARTA'S PROPERTY MARKET PARTICULARLY FOR APARTMENTS IS GROWING WITH MANY SMALLER PROJECTS ALREADY UNDER CONSTRUCTION THE KEMAYORAN GOLF APARTMENTS INVESTORS EXPECT THAT INDONESIA WILL SOON FINISH AMENDING LAND LAWS TO ALLOW FOREIGNERS TO OWN APARTMENTS APARTMENT LIVING IS NOT POPULAR WITH INDONESIANS BUT MR MA'ROEF SAID IT IS BECOMING ACCEPTED BECAUSE OF TRAFFIC PROBLEMS HE SAID FINANCING PLANS FOR THE APARTMENT PROJECT ARE BEING MADE BUT NO DETAILS WERE AVAILABLE 9401280207 940128 DIET FOODS ENJOY A UK SALES BINGE AND THE CONTINENT MAY JOIN UP SOON BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF DIET FOODS ARE SHAPING UP IN EUROPE THANKS TO NEW PRODUCTS AND HEAVY ADVERTISING THE 1989 LAUNCH OF SLIMFAST THE POWDERED DIET DRINK BY NEW YORKBASED SLIMFAST FOOD CO HAS BOOSTED BRITAIN'S STAGNANT DIETFOOD SECTOR AND MARKETERS SAY WAISTWATCHERS ON THE CONTINENT OFFER SIMILAR POTENTIAL FOR GROWTH IN BRITAIN RETAIL SALES OF DIET FOODS GREW 14 LAST YEAR AFTER A 37 CLIMB IN 1992 ACCORDING TO A SURVEY BY MINTEL INTERNATIONAL A LONDONBASED MARKETRESEARCH CONCERN WITHIN FOUR YEARS MINTEL PREDICTS THE MARKET WILL GROW ANOTHER 12 AS DIET FOODS ARE WORKING TO CHANGE THEIR IMAGE FROM MEDICINE TO CONVENIENCE PRODUCTS AND FROM CHEMICALLADEN CONCOCTIONS TO FUNFILLED FARE FOR MODERN LIFESTYLES IN BRITAIN DIET FOODS' EXPANSION FROM PHARMACIES ONTO SUPERMARKET SHELVES IS FURTHER BOOSTING THEIR POPULARITY WITH PHARMACIES YOU ALWAYS HAD THE CONNOTATION OF A MEDICAL PROBLEM EXPLAINS PETER MENSING A CONSULTANT WITH BOOZ ALLEN & HAMILTON LTD WIDER DISTRIBUTION AND ADVERTISING ALLOWS FOR IMPULSE BUYING HE SAYS DEMOGRAPHIC TRENDS ALSO FAVOR DIET FOODS BY 1997 THE NUMBER OF WOMEN IN BRITAIN AGED 25 TO 54 WILL INCREASE 4 ACCORDING TO MINTEL BRITISH WOMEN ALSO ARE GIVING BIRTH LATER IN LIFE AND ARE SUFFERING MORE FROM POSTPREGNANCY WEIGHT GAIN AS A RESULT THE FIRM SAYS MEALREPLACEMENT DRINKS AND FOOD ARE A CURRENT FAVORITE BUT LIKE CRASHDIET PLANS AND APPETITESUPPRESSANT PILLS THESE NEWER PRODUCTS ARE STRUGGLING AGAINST CONSUMERS' GROWING TASTE FOR NATURAL FOODS GENERALLY HEALTHIER EATING HABITS THAT MAKE DIETS OBSOLETE WELLPUBLICIZED DANGERS OF EXCESSIVE DIETING AND CAUTIOUS CONSUMER SPENDING AT THE END OF BRITAIN'S RECESSION AT A SUPERMARKET IN CENTRAL LONDON FOR INSTANCE A SIXSERVING BOX OF SLIMFAST'S DRIED SOUP COSTS 649 ABOUT 970 DIETFOOD MAKERS ARE FIGHTING POTENTIAL SALES HURDLES BY BOOSTING ADVERTISING BUDGETS BETWEEN 1988 AND 1992 BRITISH AD SPENDING ON DIET MEALS GREW MORE THAN 1 1/2 TIMES TO 76 MILLION MINTEL SAID LAST YEAR SLIMFAST ALONE HAD A GROSS ADVERTISING EXPENDITURE OF 8 MILLION WE'RE MAKING A TOPQUALITY PRODUCT PRESENTED BY CONTINUOUS FORCEFUL ADVERTISING SAYS JOHN COSTA WHO HEADS SLIMFAST'S INTERNATIONAL OPERATIONS IN PARIS GERMANY'S BIONORM A DIETFOOD MAKER OWNED BY CHEMICALS MAKER E MERCK CHEMISCHE FABRIK OHG IS DOUBLING ITS AD SPENDING THIS YEAR AFTER SLIMFAST'S INTENSIVE MARKETING EFFORT UPON ITS ARRIVAL ON GERMAN STORE SHELVES IN MARCH 1993 MARKETERS SAY CONSUMERS' LACK OF LOYALTY TOWARD DIETFOOD BRANDS ALSO CALLS FOR A PROMOTIONAL PUSH STRONGER THAN THAT REQUIRED BY OTHER CONSUMER GOODS DIETERS ARE EXTREMELY PROMISCUOUS SAYS ALLYSON STEWART OF AAI CONSULTANTS IN LONDON IT'S STUCK IN THEIR HEAD THAT THE PRODUCT DIDN'T WORK EVEN THOUGH IT DID AND THEY JUST PUT THE WEIGHT BACK ON SHE EXPLAINS SLIMFAST HAS POURED A LOT INTO ADVERTISING AND IT WORKED OBSERVES MICHELE SIMMONS EDITOR OF BRITAIN'S SLIMMING MAGAZINE THEY PROMOTED IT MADE SURE IT'S AVAILABLE EVERYWHERE AND IT'S REALLY CAUGHT ON NOW IN BRITAIN SLIMFAST HOLDS AN 80 SHARE OF THE DIETFOOD MARKET COMPARED WITH 8 FOR NESTLE SA'S CARNATION SLENDER 5 FOR SHAPERS THE STORE BRAND OF THE BOOTS CO DRUGSTORE CHAIN AND 4 FOR SCHOLL PLC'S LIMMITS BRAND IN GERMANY SLIMFAST HAS CONQUERED OVER TWOTHIRDS OF THE MARKET WITHIN 10 MONTHS OF ITS LAUNCH INDUSTRY LEADERS ARE TRYING TO SUSTAIN THE CURRENT CRAZE FOR MEAL REPLACEMENTS WITH A COLORFUL RANGE OF RELAUNCHES AND LINE EXTENSIONS SLIMFAST HAS COMPLEMENTED ITS INSTANT DRINKS WITH SOUPS NUTRITION BARS AND READYTODRINK JUICES NESTLE'S CARNATION SLENDER RECENTLY LAUNCHED A NEW FORMULA WITH A HIGHER FIBER CONTENT AND BOOTS SAYS IT'S DEVELOPING MORE UNUSUAL DIET FOODS SUCH AS COMPLETE DIET LUNCHES OR ICE CREAMS TO BROADEN SALES MANUFACTURERS ARE TARGETING ANOTHER MARKET SEGMENT MEN IT'S STILL AN UNTAPPED AREA SAYS SLIMFAST'S MR COSTA MEN HAVEN'T REALIZED THAT OVERWEIGHT EQUALS HEALTH PROBLEMS HE LAMENTS IN GERMANY FOR INSTANCE SLIMFAST ADS FEATURE ONLY MALE TELEVISION STARS WOMEN ALSO FIND IT INTERESTING IF A MAN LOSES WEIGHT FOR A CHANGE ADDS AN EXECUTIVE ON THE SLIMFAST ACCOUNT AT GREY ADVERTISING INC IN DUESSELDORF IT ADDS TO THE CREDIBILITY SHE EXPLAINS 9401280206 940128 SEC'S MARKET 2000 REPORT WILL WOW INVESTORS EXCHANGES WELLHARDLY BY CHRISTI HARLAN AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION'S MARKET 2000 REPORT SHAPED UP AS SOMETHING THAT ONLY AN INVESTOR COULD WHOLLY LOVE IF THE RECOMMENDATIONS CONTAINED IN THE REPORT BECOME REALITY INVESTORS' BUY AND SELL ORDERS WILL BE EXPOSED TO A MUCH BROADER RANGE OF ORDERS FROM OTHER INVESTORS THE RESULT WILL BE STOCK PRICES CLOSER TO WHAT THE CUSTOMERS WANT PARTLY BECAUSE THE PRICES WILL BE MEASURED IN TENTHS OF A DOLLAR RATHER THAN EIGHTHS THAT'S A BIG IF THOUGH MANY OF THE RECOMMENDATIONS MADE BY THE SEC'S MARKET REGULATION DIVISION WILL REQUIRE ACTION BY THE MARKETS NOT THE SEC OR CONGRESS AND THE MARKETS WEREN'T EXACTLY FALLING OVER THEMSELVES TO EMBRACE THE PROPOSED CHANGES AFTER THE REPORT WAS RELEASED YESTERDAY AMONG THE CONTROVERSIAL SUGGESTIONS A REQUIREMENT THAT MARKETS PUBLICLY DISPLAY CUSTOMER ORDERS TO BUY OR SELL AT A SPECIFIC PRICE SUCH ORDERS CALLED LIMIT ORDERS AREN'T CURRENTLY MADE PUBLIC AND THEREFORE CAN EASILY MISS BEING EXECUTED THE PROPOSAL WILL HAVE THE BIGGEST EFFECT ON THE NASDAQ AND OTHER ELECTRONIC TRADING SYSTEMS RICHARD KETCHUM CHIEF OPERATING OFFICER OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID THE PROPOSED DISPLAY OF LIMIT ORDERS WOULD REQUIRE A MAJOR STRUCTURAL CHANGE HE ADDED WITH A MARKED LACK OF ENTHUSIASM THAT IS SOMETHING THAT WE CERTAINLY WILL TAKE A LOOK AT SIMILARLY NEITHER NASDAQ NOR SOME OF THE EXCHANGES ARE WILD ABOUT MOVING TO PRICING STOCKS IN DECIMALS IT'S SUCH A POTENTIALLY TRAUMATIC STEP THAT I HOPE WE TAKE A REAL SERIOUS LOOK AT IT BEFORE MOVING IN THAT DIRECTION SAID NICHOLAS GIORDANO PRESIDENT OF THE PHILADELPHIA STOCK EXCHANGE NASDAQ MEANWHILE IS IN THE PROCESS OF ADOPTING THE MARKET 2000 RECOMMENDATION FOR AN INTERIM STEP REPORTING STOCK PRICES IN SIXTEENTHS RATHER THAN EIGHTHS BEYOND THAT WE'RE NOT GOING TO REACH A CONCLUSION UNTIL WE LOOK AT DECIMALIZATION MR KETCHUM SAID ON THE OTHER HAND NASDAQ AND MR KETCHUM ARE DOWNRIGHT PERKY ABOUT THE MARKET 2000 RECOMMENDATION THAT WOULD MAKE IT EASIER FOR COMPANIES TO MOVE THEIR LISTINGS OFF THE BIG BOARD AND A SEPARATE PROPOSAL THAT WOULD LIGHTEN AFTERHOUR TRADING RESTRICTIONS ON FIRMS THAT ARE MEMBERS OF THE NEW YORK STOCK EXCHANGE WE'RE DELIGHTED BY THE PROCOMPETITIVE SPIRIT OF THE REPORT MR KETCHUM SAID THE BIG BOARD'S FEELINGS COULDN'T BE ASCERTAINED OFFICIALS DECLINED TO COMMENT IN DETAIL ON THE REPORT SAYING THEY NEEDED MORE TIME TO STUDY IT IN A STATEMENT THE EXCHANGE COMMENDED THE SEC STAFF FOR THE DEPTH AND SCOPE OF THE MARKET 2000 REPORT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP FOR WALL STREET FIRMS WAS MORE SPECIFIC ABOUT THE REPORT'S DEPTH THE REPORT RUNS SEVERAL HUNDRED PAGES REPRESENTING SOME VERY HARD WORK BY THE SEC STAFF SAID MARC LACKRITZ THE SIA'S PRESIDENT ADDING UNTIL WE HAVE HAD AN OPPORTUNITY TO THOROUGHLY READ THE REPORT WE CAN'T COMMENT ON ANY SPECIFIC RECOMMENDATION ONLY ONE OF THE 17 MAIN RECOMMENDATIONS IN MARKET 2000 IS BELIEVED TO REQUIRE LEGISLATION SUBJECTING NASDAQ TRANSACTIONS TO THE SAME FEES THAT TRANSACTIONS IN BIG BOARD AND AMERICAN STOCK EXCHANGELISTED STOCKS ARE NOW CHARGED WHICH WOULD RAISE ABOUT 29 MILLION FOR THE SEC BUT KEY MEMBERS OF CONGRESS WEIGHED IN ON THE REPORT NONETHELESS SEN CHRISTOPHER DODD D CONN CHAIRMAN OF THE SENATE SECURITIES SUBCOMMITTEE SAID HE MAY NOT NECESSARILY ENDORSE ALL OF THE SEC RECOMMENDATONS BUT I EXPECT THE REPORT WILL SERVE AS A SORT OF ROAD MAP IN SHOWING THE WAY TOWARD MORE EFFICIENT ACCESSIBLE AND USERFRIENDLY MARKETS REP EDWARD MARKEY CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE SAID HE WAS PLEASED WITH MOST OF THE RECOMMENDATIONS IN THE MARKET 2000 REPORT THE KEY QUESTION NOW IS WHETHER THE COMMISSION AND THE EXCHANGES WILL MOVE QUICKLY TO IMPLEMENT THE STAFF'S RECOMMENDATIONS FOR REFORM OR WHETHER THESE RECOMMENDATIONS WILL LANGUISH THE MASSACHUSETTS DEMOCRAT SAID OVER THE NEXT FEW MONTHS THE SUBCOMMITTEE WILL BE HOLDING HEARINGS TO HEAR FROM SEC CHAIRMAN ARTHUR LEVITT AND THE INDUSTRY ON WHAT CONCRETE STEPS THEY ARE TAKING TO IMPLEMENT THE SPECIFIC RECOMMENDATIONS SET FORTH IN THE REPORT MR MARKEY ADDED 9401280205 940128 WHO'S NEWS FIRST BRANDS CORP FIRST BRANDS CORP DANBURY CONN GARY E GARDNER 39 YEARS OLD WAS NAMED A DIRECTOR OF THE CONSUMERPRODUCTS MANUFACTURER FILLING A VACANCY ON THE 10MEMBER BOARD MR GARDNER IS PRESIDENT OF SOFT SHEEN PRODUCTS INC A CHICAGO MAKER OF HEALTH AND BEAUTY PRODUCTS 9401280204 940128 SEC MEMBER ISSUES WARNING ABOUT SALES OF SOME DERIVATIVES SPECIAL TO THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION MEMBER RICHARD ROBERTS CAUTIONED SECURITIES FIRMS THAT SELL TAXEXEMPT DERIVATIVES TO TAKE ALL REASONABLE STEPS NECESSARY TO MAKE SURE THE SECURITIES ARE SUITABLE INVESTMENTS FOR PROSPECTIVE BUYERS DERIVATIVES ARE FINANCIAL PRODUCTS WHOSE VALUE IS DERIVED FROM AN UNDERLYING ASSET RATE OR INDEX MR ROBERTS SAID REGULATORY CONCERNS ABOUT CUSTOMER LIABILITY HAVE GROWN AS INVESTMENT IN TAXEXEMPT DERIVATIVE SECURITIES HAS BROADENED HE ESTIMATED THAT AT LEAST 10 BILLION OF TAXEXEMPT DERIVATIVE SECURITIES WERE ISSUED LAST YEAR ALONE AND SAID AN EXPECTED FALLOFF IN OVERALL MUNICIPALBOND VOLUME THIS YEAR COULD SPUR GREATER DEMAND FOR SUCH DERIVATIVES HE SAID MOST TAXEXEMPT DERIVATIVE PRODUCTS HAVE BEEN DEVELOPED IN AN ENVIRONMENT OF FALLING INTEREST RATES AND RELATIVELY FAVORABLE RETURNS FOR MUNICIPALS AND HE CAUTIONED THAT THE LIQUIDITY OF SOME OF THESE PRODUCTS IN A RISINGINTERESTRATE ENVIRONMENT IS UNKNOWN HE NOTED THAT A SPECIAL SUITABILITY RULE FOR MUNICIPALBOND DERIVATIVES IS POSSIBLE SUITABILITY RULES AS THEIR NAME IMPLIES ARE MEANT TO PROTECT CONSUMERS FROM MAKING INVESTMENTS THAT AREN'T SUITED TO THEIR FINANCIAL NEEDS AT THE SAME TIME THE SEC FILED FOR PUBLIC COMMENT A PROPOSAL BY THE MUNICIPAL SECURITIES RULEMAKING BOARD TO STRENGTHEN THE BOARD'S CUSTOMERSUITABILITY RULES THE PROPOSAL WOULD TIGHTEN THE RULES BY REMOVING LANGUAGE THAT WAS PERCEIVED BY SOME AS PROVIDING LOOPHOLES TO THE GENERAL REQUIREMENT THAT BEFORE RECOMMENDING AN INVESTMENT TO A CUSTOMER A DEALER FIRST MUST DETERMINE THAT THE PROPOSED INVESTMENT IS SUITABLE FOR THE CUSTOMER THE SEC INVITED INTERESTED PARTIES TO SUBMIT COMMENTS BY FEB 17 MR ROBERTS ALSO SAID THE SEC SHOULD RECONSIDER A REGULATORY CHANGE THAT HAS MADE IT EASIER FOR OPENEND MUTUAL FUNDS TO INCREASE THEIR HOLDINGS OF DERIVATIVE INSTRUMENTS BY ALLOWING THEM TO RAISE TO 15 FROM 10 THE AMOUNT OF ILLIQUID ASSETS THEY MAY HOLD 9401280203 940128 FAI INSURANCES EXPECTS TO POST A PROFIT FOR FISCAL 1994 ITS FIRST IN FOUR YEARS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA MOTHER NATURE HAS BEEN BUSY VISITING FIRES STORMS AND FLOODS UPON THE AUSTRALIAN INSURANCE INDUSTRY BUT SO FAR THAT HASN'T BEEN ENOUGH TO KEEP FAI INSURANCES LTD IN RED INK AGAIN THIS FISCAL YEAR ITS CHIEF EXECUTIVE RODNEY ADLER SAID IN AN INTERVIEW HE SAID THE INSURER IS LOOKING FORWARD TO POSTING A PROFIT FOR THE FISCAL YEAR ENDING JUNE 30 ITS FIRST IN FOUR YEARS FOR THE SIX MONTHS ENDED DEC 31 MR ADLER SAID HE EXPECTS THE COMPANY TO CERTAINLY REPORT AN AFTERTAX PROFIT WE'RE IN PROFIT MR ADLER SAYS WE'RE BACK THE COMPANY EXPECTS TO DISCLOSE THOSE RESULTS IN MIDFEBRUARY BY COMPARISON FAI POSTED A LOSS OF A65 MILLION US46 MILLION IN THE YEAREARLIER HALF FOR ALL OF FISCAL 1993 FAI REPORTED A LOSS OF A108 MILLION ON OPERATING REVENUE OF A113 BILLION WILL THE PROFITABLE TREND CONTINUE THROUGHOUT THIS YEAR WE DON'T LIKE TO MAKE FORECASTS BUT I IMAGINE THE ANSWER IS YES MR ADLER SAID HOWEVER HE ADDS THE CAVEAT WE'RE IN THE RISK BUSINESS SO YOU NEVER KNOW BUT WE DON'T LIKE TO MAKE LOSSES SO FAR THIS FISCAL YEAR CLAIMS HAVE BEEN WORSE THAN ANTICIPATED HE SAID MAINLY BECAUSE OF A HAILSTORM AND THE RECENT BUSH FIRES THAT SWEPT ACROSS THE STATE OF NEW SOUTH WALES ADDING TO THE STRING OF BAD NEWS FOR INSURERS ON THE PAYOUT FRONT HE SAID ARE FLASH FLOODS IN THE STATE OF TASMANIA AND A CYCLONE IN QUEENSLAND STATE FAI ISN'T DIRECTLY EXPOSED TO THE LOS ANGELES EARTHQUAKE BUT EVEN THAT IS HAVING AN INDIRECT IMPACT THE AUSTRALIAN INSURER EXPECTS THE BILLS FROM THAT DISASTER TO ADD TO THE PRESSURE WORLDWIDE TO BOOST THE COST OF REINSURANCE FINAL FIGURES AREN'T IN FOR SOME OF THE DISASTERRELATED CLAIMS IN AUSTRALIA BUT MR ADLER SAYS CLAIMS FROM THE RECENT BUSH FIRES ARE LIKELY TO COST FAI BETWEEN A2 MILLION AND A25 MILLION WHICH HE INDICATED WOULD HAVE A MINIMAL IMPACT ON THE COMPANY'S RESULTS STILL MR ADLER SAYS OUR RECOVERY CONTINUES AND PREMIUM INCOME CONTINUES TO GROW COMMENTING ON FAI'S POTENTIAL PERFORMANCE ROB MCWILLIAMS AN ANALYST WHO TRACKS FAI AT BROKERAGE FIRM MCINTOSH & CO SAID IN AN INTERVIEW THAT HE WOULDN'T BE SURPRISED IF FAI POSTS A SMALL PROFIT BUT HE'S LOOKING MORE FOR A BREAKEVEN RESULT IN THE FULL YEAR THE INSURER'S SHARES SANK TO LOWS IN APRIL TRADING AROUND 42 AUSTRALIAN CENTS EACH ON THE AUSTRALIAN STOCK EXCHANGE THEY HAVE REBOUNDED SINCE CLOSING THURSDAY AT A122 UP FIVE CENTS FROM THE PREVIOUS CLOSE GIVEN THAT FAI STILL HAS A LOT OF HURDLES TO OVERCOME PAST UNDERWRITING AND INVESTMENT MISTAKES BEFORE IT PROVES ITSELF TO INVESTORS MR MCWILLIAMS IS TELLING HIS CLIENTS THAT AT THE CURRENT PRICE IT'S TOO EARLY TO PAY THAT MUCH FOR HIS PART FAI'S MR ADLER ARGUES THAT AT THIS STAGE OF THE COMPANY'S RECOVERY THE STOCK WOULD BE FAIRLY VALUED AT BETWEEN A120 AND A150 A SHARE TO THOSE SHAREHOLDERS LOOKING FOR DIVIDENDS MR ADLER SAID THEY'LL BE OUT OF LUCK AT LEAST FOR THE FIRST HALF DEPENDING ON THE SIZE OF THE PROFIT FOR THE FULL YEAR THOUGH HE SAID THE BOARD WILL CONSIDER PAYING A DIVIDEND FAI LAST PAID AN ANNUAL DIVIDEND IN 1991 OF FOUR AUSTRALIAN CENTS A SHARE SINCE AUGUST FAI HAS RAISED A43 MILLION THROUGH PLACEMENTS OF ITS SHARES AMONG THEM WAS AN ISSUE OF NEW STOCK ANNOUNCED IN OCTOBER THAT RAISED A26 MILLION FROM QUANTUM EMERGING GROWTH PARTNERS CV GIVING THE UNIT OF FINANCIER GEORGE SOROS'S US INVESTMENT GROUP A 10 STAKE IN FAI MR ADLER SAID FAI CURRENTLY DOESN'T HAVE ANY PLANS TO OFFER MORE EQUITY THE AUSTRALIAN SHARE MARKET SURGED 40 LAST YEAR AND HAS GAINED AN ADDITIONAL 35 SINCE JAN 1 MR ADLER SAID FAI IS CURRENTLY CASHED UP HAVING TAKEN ADVANTAGE OF THE STRONG STOCK MARKET TO REALIZE SOME OF ITS INVESTMENTS I'VE TAKEN THE VIEW THAT THE MARKET IS EXPENSIVE AND WE'VE TAKEN A LOT OF PROFIT HE SAID IN ASIA FAI HAS BOUGHT A SMALL LICENSED INSURER IN HONG KONG THAT IT RENAMED FAI FIRST PACIFIC INSURANCE CO WHICH WRITES SPECIALIZED INSURANCE BUSINESS SUCH AS WORKMEN'S COMPENSATION AND COMPANY DIRECTORS' LIABILITY INSURANCE AS FOR EXPANSION IN ASIA MR ADLER SAID IT'S SLOWLY SLOWLY FOR US WHILE FAI INTENDS TO EXPAND MOSTLY IN GENERAL INSURANCE IT CURRENTLY DOESN'T HAVE ANY PLANS TO TARGET THE CHINA MARKET UNLIKE MANY OTHER INTERNATIONAL INSURERS 9401280202 940128 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES TOTALED 5629 IN NOVEMBER A 94 DECLINE FROM 6215 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID FOR JANUARY THROUGH NOVEMBER BANKRUPTCIES TOTALED 61820 A 12 DECLINE FROM 70341 A YEAR EARLIER 9401280201 940128 WHO'S NEWS SBS ENGINEERING INC SBS ENGINEERING INC ALBUQUERQUE NM PETER BERG 57 YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENGINEERING CONCERN INCREASING THE SIZE OF THE BOARD TO EIGHT MR BERG IS PRESIDENT OF BERG SYSTEMS INTERNATIONAL INC A SUBSIDIARY WHICH SBS ACQUIRED IN AUGUST 1992 9401280200 940128 NORWAY'S JOBLESS RATE IS UP COPENHAGEN NORWAY'S JANUARY UNEMPLOYMENT RATE ROSE TO 59 OF THE WORK FORCE FROM 53 IN DECEMBER ACCORDING TO THE NORWEGIAN LABOR DIRECTORATE THE NUMBER OF PEOPLE IN STATE LABOR MARKET EMPLOYMENT PROGRAMS WAS 27 OF THE WORK FORCE OR 57300 IN JANUARY THIS NUMBER IF ADDED TO UNEMPLOYMENT FIGURES WOULD BRING UNEMPLOYMENT IN JANUARY TO 86 THE DIRECTORATE SAID 9401280199 940128 ATKINSON GETS QUAKE REPAIR JOB SAN BRUNO CALIF ATKINSON CO OF CALIFORNIA SAID ITS OPERATING UNIT ATKINSON CONSTRUCTION HAS BEEN AWARDED A 144 MILLION CONTRACT FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION THE CONTRACT IS FOR REPAIRING EARTHQUAKE DAMAGE AND RETROFITTING A PORTION OF THE INTERSTATE 280 FREEWAY VIADUCT IN SAN FRANCISCO THE PROJECT IS SCHEDULED FOR COMPLETION IN 13 MONTHS ATKINSON SAID 9401280197 940128 MARKETING & MEDIA FEDERATED TO NAME KAHN AS CHAIRMAN OF BIGGEST DIVISION BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERATED DEPARTMENT STORES INC IS EXPECTED TODAY TO NAME HAROLD KAHN A FORMER TOP EXECUTIVE OF RH MACY & CO HEAD OF ITS ABRAHAM & STRAUS/JORDAN MARSH UNIT ITS LARGEST DIVISION MR KAHN WILL BE NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE UNIT WHICH HAD SALES OF 142 BILLION IN ITS MOST RECENT FISCAL YEAR OR ABOUT ONEFIFTH OF FEDERATED'S ANNUAL SALES OF ABOUT 7 BILLION A FEDERATED SPOKESWOMAN WOULDN'T CONFIRM THE APPOINTMENT WHICH HAD BEEN RUMORED EARLIER THIS WEEK THE 48YEAROLD MR KAHN WOULD TAKE OVER AN UNDERPERFORMING DIVISION THAT FEDERATED EXECUTIVES ARE HOPING TO RESUSCITATE IN 1992 CINCINNATIBASED FEDERATED MERGED THE HEADQUARTERS OPERATIONS OF A&S AND THE BOSTONBASED JORDAN MARSH UNITS IN A COSTCUTTING MOVE BUT THE UNIT'S OPERATING PROFITS ARE BELIEVED TO BE THE LOWEST IN THE FEDERATED CHAIN THAT WEAK PERFORMANCE MAY HAVE LED TO THE DEPARTURE LAST WEEK OF CHAIM Y EDELSTEIN CHAIRMAN OF THE BROOKLYN NYBASED ABRAHAM & STRAUS UNIT SINCE 1985 WHO SUDDENLY RESIGNED AS HEAD OF THE UNIT TO PURSUE OTHER INTERESTS ACCORDING TO A COMPANY STATEMENT MR KAHN'S APPOINTMENT COMES AT A CRUCIAL TIME FOR FEDERATED WHICH HAS BOUGHT A LARGE CHUNK OF MACY'S DEBT WHILE IT OPERATES UNDER BANKRUPTCYLAW PROTECTION FEDERATED HAS SAID IT WANTS TO MERGE WITH MACY TO FORM THE COUNTRY'S LARGEST DEPARTMENTSTORE CHAIN FEDERATED IS HIRING A MAN WITH EXTENSIVE KNOWLEDGE OF MACY'S OPERATIONS AT LEAST BEFORE THE RETAILER FILED FOR FEDERAL BANKRUPTCYLAW PROTECTION IN 1992 MR KAHN JOINED MACY IN 1975 AND WORKED AS A CHIEF MERCHANT IN SEVERAL KEY MERCHANDISE AREAS HE BECAME CHAIRMAN OF MACY'S SOUTH DIVISION IN 1989 MR KAHN LEFT MACY IN FEBRUARY 1992 AND LATER THAT YEAR BECAME CORPORATE PRESIDENT AND SENIOR MERCHANT OF CHICAGOBASED MONTGOMERY WARD & CO BUT LAST DECEMBER AFTER 14 MONTHS AS MONTGOMERY WARD'S NO 2 EXECUTIVE MR KAHN UNEXPECTEDLY RESIGNED FROM THE CLOSELY HELD RETAILER MOST RECENTLY INDUSTRY EXECUTIVES SAID MR KAHN WAS BEING CONSIDERED FOR THE JOB OF CHIEF EXECUTIVE OF ZALE CORP THE COUNTRY'S LARGEST RETAIL JEWELER BASED IN DALLAS ACCORDING TO PEOPLE CLOSE TO THE SITUATION MR KAHN WAS ALMOST APPROVED BY THE ZALE BOARD BUT HIS APPOINTMENT RAN INTO COMPLICATIONS AT THE FINAL HOUR EARLIER THIS WEEK MR KAHN CONFIRMED HE HAD TALKED WITH ZALE A SPOKESWOMAN FOR ZALE SAID WHILE THE COMPANY IS STILL SEARCHING FOR A CHIEF EXECUTIVE IT DOESN'T COMMENT ON ANY EXECUTIVE SEARCHES