NEW YORK STRENGTH IN THE BOND MARKET AND A SOLID SNAPBACK IN BELEAGUERED UTILITY STOCKS CLEARED THE WAY FOR GAINS IN STOCKS WEAKNESS IN BONDS AND WORRISOME TECHNICAL FACTORS INCLUDING A TUMBLING DOW JONES UTILITIES AVERAGE HAD HELPED KNOCK STOCKS LOWER IN THE PREVIOUS TWO SESSIONS THE DOW JONES INDUSTRIAL AVERAGE WHICH TUESDAY POSTED ITS BIGGEST DECLINE OF 1994 ADDED 1266 OR 033 TO 390800 IT IS BACK WITHIN EASY STRIKING DISTANCE OF THE RECORD 391448 THAT WAS SET FRIDAY BROADBASED INDEXES ALSO ADVANCED ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES LED DECLINERS ABOUT 1172 TO 888 VOLUME WAS HEAVY AT ABOUT 3046 MILLION SHARES DOWN FROM ABOUT 3261 MILLION SHARES TRADED TUESDAY THE TREASURY'S 30YEAR BOND ROSE NEARLY A 1/2 POINT PUSHING ITS YIELD DOWN TO 630 THE DOW JONES UTILITIES AVERAGE WHICH IS SEEN BY MANY AS A LEADING INDICATOR FOR BOTH THE STOCK AND BOND MARKETS RALLIED 349 OR 160 TO 22146 THE AVERAGE HAD HIT BACKTOBACK 52WEEK LOWS FRIDAY AND MONDAY BEFORE EDGING HIGHER TUESDAY THE STANDARD & POOR'S 500 STOCK INDEX YESTERDAY ROSE 228 OR 048 TO 47320 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 113 OR 043 TO 26226 THE NASDAQ COMPOSITE INDEX GAINED 241 OR 031 TO 78880 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX CLIMBED 115 OR 024 TO 48174 ADVANCED MICRO DEVICES ADDED 5/8 TO 20 5/8 AFTER COMPAQ COMPUTER SAID IT WILL BEGIN PURCHASING MICROCHIPS FROM THE SUNNYVALE CALIF COMPANY ADVANCED MICRO'S CHIPS TYPICALLY HAVE BEEN USED ONLY IN LOWERPRICED PERSONAL COMPUTERS WHILE HOUSTONBASED COMPAQ TRADITIONALLY HAS USED JUST INTEL PROCESSORS IN NASDAQ TRADING INTEL LOST 1 3/8 TO 63 5/8 ON MARKETLEADING VOLUME OF 72 MILLION SHARES COMPAQ SLID 2 1/8 TO 81 1/8 ON THE BIG BOARD EVEN THOUGH IT ALSO REPORTED STRONGERTHANEXPECTED FOURTHQUARTER EARNINGS OF 174 A SHARE UP FROM 111 A SHARE A YEAR AGO PHILIP MORRIS GAINED 1 3/8 TO 59 1/4 ALTHOUGH THE GIANT NEW YORK FOOD AND TOBACCO COMPANY'S FOURTHQUARTER EARNINGS PLUMMETED TO 38 CENTS A SHARE FROM 134 A YEAR AGO THEY LARGELY MET EXPECTATIONS THE LATEST QUARTER INCLUDED A 52 CENTASHARE RESTRUCTURING CHARGE SEPARATELY MERRILL LYNCH & CO UPGRADED A RATING ON THE STOCK SPECTRUM INFORMATION SKIDDED 7/16 TO 5 7/8 ON NASDAQ THE MANHASSET NY COMPANY CONFIRMED RUMORS REPORTED BY CNBC CABLE TELEVISION TUESDAY THAT THE COMPANY WAS THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION PROBE THE STOCK FELL 1 TUESDAY BETHLEHEM STEEL ADDED 1 5/8 TO 23 1/4 AFTER IT POSTED FOURTHQUARTER EARNINGS FROM OPERATIONS OF 47 MILLION REVERSING A YEARAGO LOSS THE BETHLEHEM PA COMPANY'S SHARES SLUMPED 2 1/8 TUESDAY ON PROFITTAKING AHEAD OF THE EARNINGS REPORT SCOTT PAPER RALLIED 2 1/8 TO 45 1/2 AFTER THE PHILADELPHIA COMPANY SAID IT WILL CUT 25 OF ITS WORK FORCE IT HAD A STEEP FOURTHQUARTER LOSS THAT INCLUDED A CHARGE FOR ITS RESTRUCTURING EFFORTS BORDEN ADDED 3/4 TO 15 1/4 THE NEW YORK FOOD COMPANY POSTED A FOURTHQUARTER LOSS THAT INCLUDED SEVERAL CHARGES AND HALVED ITS DIVIDEND TO 75 CENTS HOWEVER IT EXPECTS A MODEST PROFIT IN THE FIRST QUARTER MERRILL LYNCH UPGRADED A RATING INTERNATIONAL BUSINESS MACHINES SLIPPED 1 7/8 TO 56 3/8 THE STOCK HAD A WILD DAY TUESDAY TUMBLING MORE THAN 3 IMMEDIATELY AFTER REPORTING ITS FOURTHQUARTER EARNINGS BUT RECOVERING LATE IN THE SESSION FOR A LOSS OF JUST 3/8 ON THE DAY BALL FELL 2 TO 26 THE MUNCIE IND COMPANY POSTED A FOURTHQUARTER LOSS AND CUT ITS DIVIDEND TO 15 CENTS FROM 31 CENTS EDWARD NICOSKI A MARKET ANALYST AT PIPER JAFFRAY SAID THE POSITIVE ACTION IN BONDS AND UTILITIES EASED SOME INVESTORS' WORRIES THAT INTEREST RATES COULD CLIMB THE IMPROVEMENT IN UTILITIES THOUGH WASN'T ENOUGH TO CONVINCE ANALYSTS THAT INVESTORS' RECENT WORRIES ABOUT THE MARKET ARE OVER PIPER'S MR NICOSKI SAID HE WILL NEED TO SEE MORE EVIDENCE THAT THE MARKET'S STRENGTH IS BROADENING BEFORE HE WILL BE CONVINCED THE MARKET CAN MOVE DECIDEDLY HIGHER WHILE THE DOW JONES INDUSTRIAL AVERAGE IS UP ABOUT 4 YEAR TO DATE AIDED BY SURGING CYCLICALS BROADER INDEXES HAVE RISEN ONLY ABOUT 1 THE DOW INDUSTRIAL AVERAGE IS GOING TO NEW HIGHS AND A LOT OF INVESTORS ARE SHRUGGING THEIR SHOULDERS AND WONDERING WHY THEY AREN'T MAKING MONEY HE SAID STOCKS WERE PUSHED BACK AND FORTH SEVERAL TIMES DURING THE DAY BY PROGRAM TRADING RECENT VOLATILITY SUCH AS YESTERDAY'S PARTLY CAUSED BY PROGRAMS IS ANOTHER SIGN THE MARKET IS WEAKENING SAID EUGENE PERONI A TECHNICAL ANALYST AT JANNEY MONTGOMERY SCOTT THE CONSISTENT BUYING THAT PUSHED STOCKS STEADILY HIGHER EARLIER THIS MONTH HE SAID HAS BEEN REPLACED BY INTERMITTENT BUYING AND SELLING AND MORE OF A ZIGZAG PATTERN FOR THE MARKET 9401270027 940127 LEISURE & ARTS TV A VAMPIRE A SUPER BOWL A CRITIC AND TWO OLD MASTERS BY DOROTHY RABINOWITZ ROY MARSDEN HERETOFORE BESTKNOWN TO TV AUDIENCES AS INSPECTOR DALGLIESH TAKES ON A RATHER LESSEXALTED ROLE IN THE NEW TWOPART SHERLOCK HOLMES MYSTERY AIRING TONIGHT MR MARSDEN PORTRAYS ONE JOHN STOCKTON WHO HAS COME TO A VILLAGE ONCE INHABITED BY HIS ANCESTOR AN 18THCENTURY NOBLEMAN SUSPECTED OF BEING A VAMPIRE WHAT WITH THAT AND THE RASH OF MYSTERIOUS DEATHS THAT FOLLOW CONTACTS WITH STOCKTON THE TOWNSPEOPLE AREN'T SANGUINE ABOUT HAVING HIM AROUND THE LOCAL CLERGYMAN PLAYED BY A MASTERFUL MAURICE DENHAM WISELY SEEKS THE COUNSEL OF SHERLOCK HOLMES JEREMY BRETT WHO PROMPTLY WARNS THAT HUMANKIND'S NEED TO FIND SCAPEGOATS FOR ITS FEARS MAY BE AT THE ROOT OF THE TROUBLE THIS COMPLICATING SPIRIT OF RATIONALITY ADDS RATHER A NICE DIMENSION TO THE DRAMA WHICH ROLLS ALONG ON ITS BLOODILY SUGGESTIVE WAY WITH A FULL COMPLEMENT OF PIERCED THROATS AND HOWLS IN THE NIGHT FROM ATLANTA'S GEORGIA DOME THE EVERHOPEFUL BILLS BATTLE THE COWBOYS PREEMPTING ALL OTHER ACTIVITIES IN MILLIONS OF LIVING ROOMS BUT NOT MINE THE CREATIVE TEAM BEHIND THE SIMPSONS HAS PRODUCED ANOTHER ANIMATED COMEDY SERIES THIS ONE ABOUT JAY A TUBBY NEW YORK FILM CRITIC WHO DOES MOVIE REVIEWS ON CABLE TV IN LAST WEEK'S OPENING SHOW THE LOVELORN JAY PERSUADED HIMSELF THAT THE BEAUTIFUL ACTRESS WHO HAD THROWN HERSELF AT HIM HAD DONE SO OUT OF PURE DESIRE FOR HIS ROUND AND BALDING SELF AND NOT BECAUSE SHE WANTED A GOOD REVIEW HE NATURALLY LEARNS OTHERWISE BUT DON'T COUNT JAY OUT THE FORMER EXECUTIVE PRODUCERS OF THE SIMPSONS KNOW HOW TO MAKE HEROES OF LOSERS AS WITNESS THE STARDOM OF ONE HOMER SIMPSON IT'S TOO EARLY TO TELL HOW THE SERIES WILL TURN OUT BUT GIVEN THE OPENING EPISODE'S SENDUP OF MOVIE CRITIC GENE SHALIT TO SAY NOTHING OF THE ACTION IN A FANCY NIGHTCLUB CALLED THE WEALTHY JACKASS THE SIGNS ARE PROPITIOUS THIS HALLMARK HALL OF FAME PRESENTATION BASED ON AN ANNE TYLER NOVEL STARS JAMES GARNER AND JOANNE WOODWARD AS A MARRIED TEAM TRYING TO GET THROUGH THE LITTLE AND BIG TROUBLES OF LIFE MS WOODWARD PLAYS MAGGIE A WOMAN OF VAGUE MIND STRONG WILL AND CHEERY ECCENTRICITY WHILE MR GARNER TAKES THE ROLE OF HUSBAND IRA A HARDMINDED SKEPTIC THE PLEASURE OF WATCHING THESE TWO MASTERS AT WORK IS SO CONSIDERABLE AND CONSISTENT IT HARDLY MATTERS THAT THE SCRIPT IS SLOW GOING AT LEAST AT FIRST IF IT CAN BE SAID TO GO AT ALL EVEN PEOPLE WE ARE MANY WHO LOATHE FILMS ABOUT CHEERY ECCENTRICS OR WHO ARE UNLIKELY TO ACQUIRE A TASTE FOR ANNE TYLER'S FICTION WILL LIKE THIS DOUBLE STAR TURN THIS SIXHOUR SERIES ON THE SPORTS INDUSTRY PROVIDES IN THE WORDS OF AN OLD SONG A LITTLE BIT ABOUT A LOT OF THINGS OVERALL THERE IS MUCH THAT IS INTERESTING THOUGH IT TAKES A WHILE TO GROW ACCUSTOMED TO THE WEIGHT OF ITS AFFECTATIONS BOTH MUSICAL AND PHOTOGRAPHIC THE FIRST SEGMENTS ESPECIALLY COULD BE MISTAKEN FOR MUSIC VIDEOS BUT HANG ON THE SECOND NIGHT OF THIS SERIES BRINGS AN EPISODE ABOUT HUSTLING AGENTS LOOKING FOR PROMISING PLAYERS THE CAMERAS FOLLOW ONE HARDWORKING REP AND HIS CLIENT AND HIS CLIENT'S LARGE FAMILY THROUGH AN AGONIZING WAIT TO SEE IF THE YOUNG PLAYER MAKES THE FIRSTROUND OF THE NFL DRAFT THIS IS AN ENTIRELY MEMORABLE SEQUENCE IF ONE NEVER AGAIN EQUALLED IN THE SEGMENTS THAT FOLLOW THESE INCLUDE ONE ABOUT BASEBALL OWNERS STARRING THE CINCINNATI REDS SALTY OLD MARGE SCHOTT WHO IS LIKE A LOT OF OTHER FAMOUS OLD SALTS A LOT LESS INTERESTING THAN ADVERTISED 9401270026 940127 WHO'S NEWS DRESDNER BANK AG DRESDNER BANK AG FRANKFURT GEORGE FUGELSANG WAS NAMED PRESIDENT OF DRESDNER SECURITIES USA INC A UNIT OF THE GERMAN BANK EFFECTIVE FEB 1 DRESDNER SECURITIES PREVIOUSLY WAS KNOWN AS ABD SECURITIES CORP MR FUGELSANG CURRENTLY IS A MANAGING DIRECTOR WITH MORGAN STANLEY & CO IN LONDON IN ADDITION GERHARD EBERSTADT THE BANK'S MANAGEMENT BOARD MEMBER RESPONSIBLE FOR SECURITIES OPERATIONS WILL SUCCEED WOLFGANG ROELLER AS CHAIRMAN OF DRESDNER SECURITIES USA 9401270025 940127 CORRECTIONS & AMPLIFICATIONS CHEVRON CORP'S FOURTHQUARTER NET INCOME DIDN'T INCLUDE CHARGES FOR THE PLANNED SALE OF TWO REFINERIES THOSE CHARGES WERE TAKEN IN THE SECOND QUARTER AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE CHARGES WERE INCLUDED IN FOURTHQUARTER RESULTS 9401270024 940127 REVIEW & OUTLOOK EDITORIAL THE CLINTON DIKTAT BILL CLINTON WANTS CONGRESS TO GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY FLOURISHING HIS PEN HE ASSERTS HE'LL VETO ANYTHING LESS WE'RE IMPRESSED IMPRESSED NOT MERELY WITH THE BREATHTAKING SCOPE OF MR CLINTON'S GRAND PLAN FOR AMERICAN HEALTH CARE BUT ALSO WITH THE MOSESDOWNFROMTHEMOUNT QUALITY OF HIS PRONOUNCEMENTS ON THIS SUBJECT WITH WHOM HAS BILL CLINTON BEEN COMMUNING WHAT IS THE SOURCE OF THIS PRESIDENT'S EXPANSIVE SENSE OF DIKTAT LET'S UNDERSTAND SOMETHING HERE NO ONE IN AMERICA IS BEING DENIED MEDICAL TREATMENT THERE IS SIMPLY NO RELEVANT INCIDENCE OF SICK PEOPLE BEING TOLD BY DOCTORS TO GO OUT INTO THE STREET TO LIE DOWN AND DIE WERE THAT TRUE 60 MINUTES WOULD HAVE SCANDALIZED US WITH IT YEARS AGO THE POOR ALREADY HAVE MEDICAL INSURANCE THROUGH MEDICAID AND THE ELDERLY THROUGH MEDICARE AND ANY SENTIENT AMERICAN HAS KNOWN FOR YEARS THAT FOR PEOPLE WITHOUT INSURANCE CARE GETS PROVIDED FIRST AND WORRIES ABOUT PAYMENT COME LATER AS INDEED MR CLINTON'S OWN EXAMPLES SHOW THE ISSUE IS HOW BEST TO PAY FOR THIS CARE IN A WAY THAT BOTH FAIRLY SPREADS THE FINANCIAL RISKS AND CREATES INCENTIVES FOR EFFICIENCY THE NOTION THAT THIS CAN BE DONE ONLY THROUGH GUARANTEED UNIVERSAL AND PRIVATE INSURANCE IF INDEED THOSE NOTIONS CAN BE COMBINED AT ALL IS SIMPLY ARBITRARY AND CAPRICIOUS IN RECENT YEARS THE COSTS OF CARE FOR THE UNINSURED AND INDEED FOR BELOWCOST REIMBURSEMENT FOR MEDICAID AND MEDICARE HAVE BEEN SHIFTED ONTO ALL THE REST OF US LARGELY WE'D ADD WITH THE PUBLIC'S SOCIALLY CONSCIOUS ASSENT BUT AS THE INEFFICIENCIES AND DISTORTIONS OF THIS SHIFTING BECAME TOO COSTLY THE SYSTEM HAD LATELY BEGUN TO RESPOND AND REORDER ITSELF HMOS AND MANAGED CARE ARE BUT TWO EXAMPLES THE YEAROVERYEAR INCREASES IN MEDICAL COSTS HAS BEEN DECLINING RATHER SMARTLY YET MR CLINTON AND THE PLAN'S MOVING SPIRIT HIS WIFE HILLARY ARRIVED IN WASHINGTON WITH THEIR 43 MANDATE AND ANNOUNCED THAT THE AMERICAN HEALTHCARE SYSTEM 14 OF GROSS DOMESTIC PRODUCT WAS IN CRISIS NOT JUST SOME BLEEDING CORNER OF THE SYSTEM SUCH AS PORTABILITY OR PREEXISTING CONDITIONS OR MEDICAID BUT THE WHOLE SYSTEM THE HOSPITALS THE PHYSICIANS THE DRUG COMPANIES THE INSURANCE COMPANIES EMPLOYERS ALL ARE IN THE CRISIS AND SO ALL OF IT MUST BE REASSEMBLED BY HILLARY CLINTON AND BY IRA MAGAZINER BOLD IS INDEED A WORD FOR IT THOUGH WE THINK OUR ARBITRARY AND CAPRICIOUS FITS BETTER MR CLINTON'S HEALTH CRISIS REMINDS US OF JIMMY CARTER'S ENERGY CRISIS WE WERE TOLD THE EARTH'S CRUST WAS RUNNING OUT OF HYDROCARBONS AND NOW WE'RE TOLD THAT THE BEST HEALTH CARE IN HISTORY IS KILLING US SO WASHINGTON SETS OUT TO REORDER HUGE HUNKS OF THE ECONOMY WHILE THE ADMINISTRATION REFUSES TO ADMIT IT ITS PROPOSAL IS A SYSTEM OF PRICE CONTROL THE ONES THAT GAVE US GASOLINE LINES TO PUT OUR OBJECTION BLUNTLY BILL CLINTON'S DIKTAT IS GOING TO LOUSE UP YOUR HEALTH CARE WHY IS BILL CLINTON INSISTING ON ENGULFING ALL THE REST OF US IN HIS ATTEMPT TO COMMAND THE HEALTHCARE WAVES TO REARRANGE THEMSELVES THAT ANSWER WE'RE CONVINCED IS PRETTY SECULAR IT'S ABOUT POLITICS THE CLINTON BRAIN TRUST AS IT HAS MADE EXPLICIT IN ARTICLES SPEECHES AND TV APPEARANCES THINKS ITS CENTRAL TASK IS TO RECAPTURE THE LOYALTY OF THE MIDDLE CLASS WHICH CONCLUDED THAT DEMOCRATIC LIBERALISM WASN'T ABOUT THEM THE STRATEGY NOW IS TO GIVE THE MIDDLE CLASS A NEW FEDERAL ENTITLEMENT THAT WORD IS OUT OF FAVOR HOWEVER SO HERE IT'S CALLED A GUARANTEE OR MORE MAJESTICALLY A RIGHT WHETHER THIS WILL WORK EVEN AS POLITICS IS OPEN TO QUESTION POLLING ON THE CLINTON PLAN SUGGESTS STRONGLY THAT THE MORE ALREADYINSURED PEOPLE LEARN ABOUT THE PLAN THE MORE THEY ARE LIKELY TO OPPOSE IT THE ECONOMIC RECOVERY ALSO TAKES THE EDGE OFF THE RECESSION'S PORTABILITY SCARE AND RECALL THAT AS THE PUBLIC CAUGHT ON TO THE CARTER ENERGY PROGRAM IT FELL APART ONE PIECE AT A TIME WHAT THE CLINTON STRATEGY DOES HAVE GOING FOR IT IS BILL CLINTON AS THE STATE OF THE UNION RHETORIC MADE CLEAR THIS IS A NEW KIND OF PRESIDENCY MR CLINTON DOESN'T MERELY APPEAL TO THE ELECTORATE HE TRIES TO ENVELOP IT LISTENING TO THE DEPTH OF FEELING WITH WHICH MR CLINTON DESCRIBED WHAT WE CAN DO ON EVERY IMAGINABLE FRONT ONE HAD THE SENSE THAT THIS ISN'T JUST POLITICS THIS IS GOING TO BE A RELATIONSHIP WE HAVE IT SEEMS ENTERED THE AGE OF THE CODEPENDENCY PRESIDENCY BUT WHAT WE DO HERE IS REALLY BEGINNING TO CHANGE LIVES THOUGH WE ARE MAKING A DIFFERENCE OUR WORK HAS JUST BEGUN MANY AMERICANS STILL HAVEN'T FELT THE IMPACT OF WHAT WE'VE DONE LET US RESOLVE TO CONTINUE THE JOURNEY OF RENEWAL I WANT TO SAY SOMETHING TO EVERYBODY HERE WHO CARES ABOUT THIS ISSUE EVERYBODY CAN CONTRIBUTE SOMETHING IF WE WANT TO SOLVE THE HEALTH CARE CRISIS IT SOUNDS APPEALING AND CAPTIVATING AND MORE THAN A LITTLE TOUGH TO BELIEVE OUR ADVICE IS KEEP A GOOD GRIP ON YOUR WALLET AND IF ANYTHING LIKE THE CLINTON PLAN EVER PASSES DON'T GET SICK 9401270023 940127 WHO'S NEWS FOAMEX INTERNATIONAL INC FOAMEX INTERNATIONAL INC EAST PROVIDENCE RI JOHN RALLIS A SENIOR VICE PRESIDENT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FOAMPRODUCTS MANUFACTURER MR RALLIS 56 YEARS OLD FORMERLY SERVED AS CHAIRMAN AND CHIEF EXECUTIVE OF GREAT WESTERN FOAM PRODUCTS CORP PRIOR TO ITS ACQUISITION BY FOAMEX LAST YEAR HE WILL SUCCEED WILLIAM H BUNDY 53 WHO WILL CONTINUE AS A SENIOR MANAGER AND BOARD MEMBER IN ADDITION FOAMEX CHAIRMAN MARSHALL S COGAN 56 WILL ASSUME THE NEWLY CREATED TITLE OF CHIEF EXECUTIVE 9401270022 940127 INTERNATIONAL JAPANESE EFFORTS TO REFORM POLITICS REMAIN AT IMPASSE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S STOCK MARKET LATCHED ON TO RUMORS OF A SPEEDY END TO THE NATION'S CURRENT POLITICAL TURMOIL BUT THERE WAS NO PUBLIC EVIDENCE OF ANY SETTLEMENT THE RULING COALITION STUNNED BY THE PARLIAMENTARY SETBACK LAST WEEK OF ITS POLITICALREFORM BILLS DRAFTED A COMPROMISE PROPOSAL WEDNESDAY TO DRAW SUPPORT FROM THE OPPOSITION LIBERAL DEMOCRATIC PARTY A SPECIAL COMMITTEE DESIGNED TO DISCUSS THE PLAN HOWEVER ADJOURNED AFTER JUST FIVE MINUTES WITH NO NEGOTIATION ON THE ISSUES THE COMMITTEE IS SCHEDULED TO MEET AGAIN THURSDAY BUT LDP LEADERS AREN'T MAKING ANY ENCOURAGING NOISES WE HAVEN'T REACHED A CONSENSUS WITHIN THE PARTY YOSHIRO MORI LDP SECRETARYGENERAL SAID IN THE POLITICALREFORM NEGOTIATIONS THE COALITION'S COMPROMISE PROPOSAL INCLUDED WATERING DOWN RESTRICTIONS ON CORPORATE CAMPAIGN CONTRIBUTIONS AND CHANGING THE COMPOSITION OF THE NEW ELECTORAL RULES TO BE MORE FAVORABLE TO THE LDP ECONOMIC POLICY AND OTHER MATTERS HAVE GROUND TO A HALT IN THIS WEEK'S POLITICALREFORM STRUGGLE IF THE COALITION FAILS TO REVIVE THE LEGISLATION BY THE END OF THE PARLIAMENTARY SESSION SATURDAY PRIME MINISTER MORIHIRO HOSOKAWA MAY RESIGN OR MAY CALL SNAP ELECTIONS SUCH FEARS TRIGGERED A SHARP DROP IN THE TOKYO MARKET EARLIER THIS WEEK HOURS BEFORE WEDNESDAY'S FAILED COMMITTEE MEETING RUMORS SWEPT THE STOCK MARKET THAT A PROREFORM FACTION OF THE LDP WAS READY TO CUT A DEAL FOREIGN BUYING IN PARTICULAR LED THE NIKKEI 225STOCK INDEX TO CLOSE AT 1913821 UP 48985 POINTS OR 26 9401270021 940127 WEDNESDAY'S MARKETS STOCKS RISE BOND PRICES POST GAINS STABLE INTEREST RATES ARE SEEN INVESTORS GRAB FINANCIAL SHARES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES CLIMBED BUOYED BY THE PROSPECT THAT INTEREST RATES ARE LIKELY TO STAY STEADY BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE ROSE 1266 POINTS TO 390800 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX JUMPED 228 TO 47320 AND THE NASDAQ COMPOSITE INDEX GAINED 241 TO 78880 JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON SAID STOCKS STARTED RALLYING ON THE PROSPECT THAT INTEREST RATES WERE LIKELY TO REMAIN STABLE OR EVEN MOVE LOWER ONE OF THE REASONS INVESTORS WERE SO HOPEFUL ABOUT RATES IS THAT THE DOW JONES UTILITY AVERAGE WHICH SOME ANALYSTS CONSIDER A LEADING INDICATOR OF INTEREST RATES AND STOCK PRICES SURGED AFTER SLUMPING IN RECENT WEEKS THE INDEX OF 15 UTILITY STOCKS SOARED 349 POINTS TO 22146 THE FEELING IS THAT INTEREST RATES ARE NOT GOING TO THE MOON BECAUSE THE UTILITY AVERAGE HAD A STRONG DAY SAID MR APPLEGATE ADDING THAT EXPECTATIONS THAT RATES WOULD STAY LOW ENCOURAGED MANY INVESTORS TO SNAP UP FINANCIAL STOCKS SUCH AS BANKS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 103 TO 11444 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3046 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1172 ISSUES ROSE AND 888 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/2 A POINT OR ALMOST 5 FOR EACH 1000 FACE AMOUNT TO YIELD 630 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17450 MARKS AND 11005 YEN COMPARED WITH 17496 MARKS AND 11090 YEN TUESDAY 9401270019 940127 ECONOMY HEALTH PROPOSAL MAY ALLOW MORE SELFINSURANCE FEWER EMPLOYERS TO BE PUT INTO REGIONAL ALLIANCES CLINTON OFFICIAL HINTS BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SUGGESTED THE CLINTON ADMINISTRATION IS WILLING TO MODIFY ITS HEALTHCARE PLAN TO MAKE IT EASIER FOR COMPANIES TO INSURE WORKERS THEMSELVES INSTEAD OF BEING FORCED INTO REGIONAL INSURANCE POOLS THE POOLS CALLED HEALTH ALLIANCES WOULD BRING BUSINESSES AND INDIVIDUALS TOGETHER TO BUY HEALTH COVERAGE THE ALLIANCES WHICH WOULD BE DESIGNED TO SPREAD INSURANCE RISK AND INCREASE CONSUMER BARGAINING POWER HAVE BECOME ONE OF THE MOST CONTROVERSIAL PARTS OF THE PRESIDENT'S HEALTHCARE PROPOSAL UNDER THE PRESIDENT'S PLAN ANY EMPLOYER WITH FEWER THAN 5000 WORKERS WOULD BE REQUIRED TO JOIN AN ALLIANCE AND PAY IT ON BEHALF OF EACH WORKER YOU THINK THE 5000EMPLOYEE THRESHOLD FOR JOINING REGIONAL ALLIANCES IS TOO HIGH YOU WANT IT REDUCED TO 500 MR BENSTEN TOLD A CONVENTION OF THE NATIONAL MANUFACTURERS ASSOCIATION WE HEAR YOU WE'RE WILLING TO DISCUSS THIS AND OTHER DETAILS OF OUR PLAN THE WHITE HOUSE LATER CAUTIONED AGAINST READING TOO MUCH INTO MR BENTSEN'S REMARKS BUT OFFICIALS PRIVATELY EXPECT THAT THEY WILL HAVE TO GIVE UP SOMETHING ON ALLIANCES MR BENTSEN'S CONCILIATORY TONE DOVETAILS WITH EFFORTS BY SENIOR DEMOCRATS TO NARROW DIFFERENCES WITH INDUSTRY AND BUILD SUPPORT IN CONGRESS FOR THE CORE OF THE PRESIDENT'S PLAN ALLIANCES ARE ONE OF THE AREAS WHERE THERE IS A FAIR AMOUNT OF ROOM FOR MOVEMENT SAID HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL LET'S PUT IT THIS WAY ADDED THE MICHIGAN DEMOCRAT I DON'T BELIEVE IN ALLIANCES LIKE I DO THE HOLY TRINITY THE ADMINISTRATION SOUGHT TO DEVISE ALLIANCES THAT WOULD BE LARGE ENOUGH BOTH TO SHARE COMMUNITY RISKS AND TO BARGAIN EFFECTIVELY WITH PROVIDERS FOR LOWERCOST CARE MANY OF THE ADJUSTMENTS UNDER CONSIDERATION SEEK TO ACHIEVE THE SAME RESULT ONE OPTION FOR EXAMPLE WOULD PERMIT SEVERAL COMPANIES THAT TOGETHER HAVE MORE THAN THE THRESHOLD NUMBER OF EMPLOYEES TO FORM THEIR OWN SELFINSURANCE SCHEMES LIKE LARGER CORPORATIONS MR BENTSEN'S COMMENTS CAME AS CONGRESSIONAL BARGAINING OVER THE HEALTH PLAN BEGAN IN EARNEST IN HIS STATE OF THE UNION ADDRESS TUESDAY NIGHT MR CLINTON WARNED THAT HE WOULD VETO HEALTH LEGISLATION THAT FAILS TO GUARANTEE MEDICAL COVERAGE FOR ALL AMERICANS DEMOCRATS ARGUED THIS SHOULD BE SEEN NOT SO MUCH AS A THREAT AS AN INVITATION TO SEEK ACCOMMODATIONS ON OTHER ASPECTS OF THE PLAN I THINK EVERYTHING ELSE IS ON THE TABLE IF YOU CONCEDE THAT THE ULTIMATE CORE BILL MUST INCLUDE GUARANTEED HEALTH INSURANCE FOR ALL AMERICANS SAID HOUSE SPEAKER THOMAS FOLEY D WASH HE SUGGESTED FOR INSTANCE THAT AS LONG AS UNIVERSAL COVERAGE IS ASSURED SOME ALTERNATIVE APPROACH MIGHT BE FOUND TO THE ADMINISTRATION'S RECOMMENDATION THAT THE PLAN BE FINANCED BY REQUIRING ALL EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS THE COMING HEALTH FIGHT WILL BE PLAYED OUT FIRST IN MR DINGELL'S ENERGY AND COMMERCE COMMITTEE THE PANEL'S 2717 SPLIT BETWEEN DEMOCRATS AND REPUBLICANS MAKES IT A BETTER MEASURE OF THE HOUSE THAN THE WAYS AND MEANS COMMITTEE WHICH IS MORE STACKED TO THE DEMOCRATS' ADVANTAGE AND MR DINGELL WHOSE FATHER CHAMPIONED HEALTH INSURANCE AS A CONGRESSMAN BRINGS BOTH A DEEP COMMITMENT TO THE ISSUE AND PERSONAL ROOTS IN THE INDUSTRIAL MIDWEST THE HOME OF A NUMBER OF REPUBLICANS WHOSE VOTES HE'LL NEED THE PRESIDENT AND HIS HEALTH ADVISERS MET YESTERDAY MORNING WITH THE HOUSE DEMOCRATIC LEADERSHIP TO DISCUSS STRATEGY AMONG THOSE WHO ATTENDED WERE MR DINGELL HOUSE LABOR AND EDUCATION COMMITTEE CHAIRMAN WILLIAM FORD D MICH AND HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI D ILL ALTHOUGH THE IMMEDIATE WHITE HOUSE FOCUS YESTERDAY WAS ON DEMOCRATS REPUBLICANS HOLD IMMENSE POWER PARTICULARLY IN THE SENATE MINDFUL OF THIS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY HELD A MEETING FOR MEMBERS OF HIS PANEL FROM BOTH PARTIES TO DISCUSS PROCEDURES FOR HANDLING THE LEGISLATION THE TENTATIVE SCHEDULE SET OUT AT THE MEETING ANTICIPATES WEEKS OF HEARINGS RUNNING UNTIL LATE APRIL THAT MEANS LEGISLATION WON'T ACTUALLY BE DRAFTED UNTIL MAY IN THE SENATE AT LEAST THERE IS A SENSE THE ALLIANCES CAN SURVIVE ONLY IF THEY ARE ESTABLISHED ON A VOLUNTARY BASIS BUT MORE BROADLY A CORE GROUP OF REPUBLICAN MODERATES REMAIN COMMITTED TO MORESUBSTANTIAL REFORMS THAN THE INCREMENTAL APPROACH FAVORED BY MANY CONSERVATIVES IN THE HOUSE I THINK THERE'S A REAL FINANCIAL PROBLEM OUT THERE FOR INDIVIDUALS FOR THE COMPANIES FOR THE NATION SAID SEN JOHN CHAFEE R RI REP STEVE GUNDERSON THE TYPE OF REPUBLICAN MIDWESTERNER WHOSE VOTE THE PRESIDENT'S TEAM NEEDS DESCRIBED A MEETING WITH FARMERS IN HIS WISCONSIN DISTRICT WHO FACE A MAJOR INCREASE IN MEDICAL INSURANCE PREMIUMS GUYS LIKE STEVE GUNDERSON CAN'T STAND UP AND SAY THERE'S NOT A PROBLEM SAID THE REPUBLICAN YOU TELL MY CONSTITUENTS THAT 9401270018 940127 BUSINESS BRIEF STRATUS COMPUTER INC ONETIME CHARGE RESULTS IN LOSS FOR FOURTH QUARTER STRATUS COMPUTER INC MEETING ANALYSTS' EXPECTATIONS REPORTED A FOURTHQUARTER LOSS OF 171 MILLION OR 72 CENTS A SHARE INCLUDING A ONETIME CHARGE OF 362 MILLION OR 154 A SHARE IN CONNECTION WITH RECENT ACQUISITIONS A YEAR EARLIER THE MARLBORO MASS MAKER OF FAULTTOLERANT COMPUTERS HAD EARNINGS OF 172 MILLION OR 73 CENTS A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING STRATUS WAS QUOTED AT 29625 OFF 125 CENTS 9401270017 940127 MARKETING & MEDIA ADVERTISING FOR ATHLETES TOUGHEST CHALLENGE MAY BE WINNING ENDORSEMENTS BY KEVIN GOLDMAN THERE'S NO QUESTION THAT THE BUFFALO BILLS WILL BE FACING A DAUNTING OPPONENT WHEN THEY MEET THE DALLAS COWBOYS IN SUPER BOWL XVIII AT 618 PM THIS SUNDAY IN ATLANTA BUT THE BILLS WHO HAVE LOST THREE CONSECUTIVE SUPER BOWLS MAY FACE AN EVEN TOUGHER CHALLENGE WHEN THEY SPRINT OFF THE FIELD AFTER THE FINAL WHISTLE AND SEEK ENDORSEMENT DEALS ON MADISON AVENUE ACCORDING TO MARKETING EXPERTS ADVERTISERS ARE BECOMING INCREASINGLY RELUCTANT TO SIGN UP PROFESSIONAL ATHLETES AS PRODUCT SPOKESMEN THE PRIMARY REASON THE OFFFIELD BEHAVIOR OF ATHLETES IS GETTING TOO UNPREDICTABLE SOME MARKETING OFFICIALS SAY SOCALLED MORAL CLAUSES IN ENDORSEMENT CONTRACTS HAVE GROWN ELABORATE AND IT IS NOW EASIER FOR CLIENTS TO BAIL OUT ON A CELEBRITY ANOTHER CONCERN FOR ADVERTISERS IS WHETHER AN ATHLETE IS PERCEIVED AS A WINNER OR A LOSER EVERYONE IS SCARED SAYS NOVA LANKTREE PRESIDENT OF LANKTREE SPORTS A CHICAGO COMPANY THAT PAIRS SPORTS CELEBRITIES TO COMMERCIALS AND TELEVISION PROJECTS THERE IS TREPIDATION IN THE AD INDUSTRY MOST RECENTLY ADVERTISERS WERE SHAKEN BY THE ALLEGED INVOLVEMENT OF PEOPLE CLOSE TO SKATER TONYA HARDING IN A BRUTAL ATTACK ON RIVAL NANCY KERRIGAN MS KERRIGAN CONTINUES TO RECEIVE OFFERS FOR PRODUCT ENDORSEMENTS BUT ADVERTISERS AREN'T INTERESTED IN MS HARDING ACCORDING TO MS LANKTREE SO THE BILLS AND THEIR MOST IMPORTANT PLAYER QUARTERBACK JIM KELLY FACE A SKEPTICAL ADVERTISING INDUSTRY AND WOULD SEEM TO HAVE LITTLE CHANCE OF SNARING LUCRATIVE CONTRACTS IF THEY TURN UP AS LOSERS FOR THE FOURTH STRAIGHT YEAR LAST YEAR THE COWBOYS TROUNCED THE BILLS 5217 THE CHANCES INCREASE GREATLY IF THE BILLS WIN SAYS DAN KELLY YOUNGER BROTHER AND PRESIDENT OF JIM KELLY ENTERPRISES IN BUFFALO I DON'T THINK IT SHOULD MATTER WHETHER THE BILLS WIN OR LOSE BUT IT DOES WHEN IT COMES TO TALKING ABOUT ENDORSEMENTS I WOULD THINK THAT HE WOULD GET HIS SHARE OF PRODUCT ENDORSEMENTS IF THEY WIN JIM KELLY'S AD FOR NUPRIN FROM BRISTOLMYERS SQUIBB HASN'T BEEN USED IN ABOUT THREE YEARS ACCORDING TO LISA SCHERER VICE PRESIDENT OF MARKETING AT JIM KELLY ENTERPRISES NUPRIN SHE SAYS OPTED TO STEER THE CAMPAIGN TO OLDER PROFESSIONAL TENNIS PLAYERS INCLUDING JIMMY CONNORS MR KELLY ENDORSES SKYBOX INTERNATIONAL A TRADING CARD COMPANY AND APEX ONE AN APPAREL COMPANY IN PISCATAWAY NJ OTHER THAN MR KELLY THE BILLS PLAYER WITH THE GREATEST COMMERCIAL POTENTIAL IS BRUCE SMITH WHO IS CURRENTLY APPEARING IN COMICAL ADS FOR WAVY LAY A NEW PRODUCT FROM PEPSICO'S FRITOLAY DIVISION HE IS ALSO IN BIZARRE AND CONTROVERSIAL ADS FOR NIKE COSTARRING DENNIS HOPPER WHO SNIFFS MR SMITH'S SNEAKERS BOB DORFMAN A SENIOR COPYWRITER AT FOOTE CONE & BELDING'S SAN FRANCISCO OFFICE SAYS MR SMITH IS ONE OF THE FEW BILLS WHO CAN RISE ABOVE A FOURTH STRAIGHT SUPER BOWL DEFEAT ODDLY MR DORFMAN SAYS ANOTHER POSSIBLE CONTENDER FOR ENDORSEMENTS IS MARV LEVY THE BILLS' COACH ARMED WITH A MASTER'S DEGREE IN ENGLISH FROM HARVARD MR DORFMAN SAYS MR LEVY HAS THE POTENTIAL TO ENDORSE HIGHBROW PRODUCTS SUCH AS COMPUTERS OR ENCYCLOPEDIAS ENDORSEMENTS OFFER ATHLETES A MUCH GREATER FINANCIAL RETURN THAN SIMPLY WINNING THE GAME FOR EXAMPLE THE SUPER BOWL WINNERS EACH RECEIVE 38000 EACH LOSING PLAYER GETS 23500 BUT MARKETING EXPERTS ESTIMATE THAT ATHLETES CAN EARN 50000 BY APPEARING IN A SINGLE FASTFOOD AD AND HAVING THEIR FACE ON A BOX OF WHEATIES FROM GENERAL MILLS COULD PAY UPWARD OF 200000 THE CHANCES FOR ENDORSEMENTS ARE HIGHER WITH THE COWBOYS STARTING WITH ITS QUARTERBACK TROY AIKMAN WHOSE HANDSOME LOOKS REMIND SOME OF JOE MONTANA FORMER QUARTERBACK FOR THE SAN FRANCISCO 49ERS AND NOW FOR THE KANSAS CITY CHIEFS IN FACT MR DORFMAN SAYS MR AIKMAN HAS THE LOOKS THE TALENT AND THE DOMINANT TEAM TO BECOME THE NEXT JOE MONTANA OF ENDORSEMENTS MR DORFMAN'S ONLY RECOMMENDATION GIVE THE LAD SOME CHARISMA LESSONS ALREADY THOUGH MR AIKMAN HAS WORKED FOR NIKE AND WHEATIES AND LAST YEAR HE WAS THE PLAYER WHO SAID HE WAS GOING TO DISNEY WORLD POSTSUPER BOWL EMMITT SMITH A COWBOYS RUNNING BACK COULD BE HEADED FOR DISNEY WORLD THIS YEAR IF THE COWBOYS PULL OFF A SECOND DEFEAT OF THE BILLS PREDICTS MR DORFMAN HE HAS APPEARED IN ADS FOR REEBOK STARTER AND COCACOLA ANOTHER MEMBER OF THE COWBOYS ORGANIZATION WITH ENORMOUS POTENTIAL IS FLAMBOYANT AND BOASTFUL COACH JIMMY JOHNSON WITH HIS PERFECTLY WHITE TEETH PERFECTLY COIFFED HAIR AND PERFECTLY ROUND SHAPE MR JOHNSON COULD BECOME A LARGERTHANLIFE CHARACTER SAYS MR DORFMAN NOT UNLIKE FORMER CHICAGO BEARS COACH MIKE DITKA AND FORMER OAKLAND RAIDERS COACH AND CBS SPORTS COMMENTATOR JOHN MADDEN MR JOHNSON IS CURRENTLY SEEN IN TELEVISION ADS FOR APEX ONE AND IS QUITE AMUSING DRIVING A LARGE CONVERTIBLE AND PICKING UP COWBOYS PLAYERS WHO ARE HITCHHIKING MS LANKTREE FOR ONE IS LESS ENTHUSIASTIC ABOUT THE COWBOYS HOWEVER THERE IS NO REAL TELEVISION SUPERSTAR ON THE TEAM SHE SAYS ALTHOUGH SOME OF THE PLAYERS MAY DO WELL IN REGIONAL ADVERTISING SHE SAYS IT ISN'T LIKELY THEY WILL REAP BIG FINANCIAL BENEFITS FROM NATIONAL ADS OF COURSE SOMETIMES IT DOESN'T MATTER WHETHER YOU'RE PERCEIVED AS A WINNER OR LOSER TAKE CHEVY CHASE FOR INSTANCE OF COURSE HE ISN'T AN ATHLETE BUT HE WILL MAKE AN APPEARANCE IN THIS YEAR'S SUPER BOWL CLUSTER OF ADS FOR DORITOS TORTILLA THINS FROM FRITOLAY IN THE MIDDLE OF THE SPOT MR CHASE IS INFORMED BY A GROUP OF EXECUTIVES WEARING SUNGLASSES THAT HE IS CANCELED AUDIENCE RESEARCH ON MR CHASE IS LOUSY HE IS TOLD THE ADS ARE A CLEAR REFERENCE TO HIS SHORTLIVED LATENIGHT TALK SHOW ON FOX LAST YEAR ONE IMPORTANT DIFFERENCE BETWEEN MR CHASE AND ANY MEMBER OF THE BUFFALO BILLS MS LANKTREE IMAGINES THE LAST THING THE BILLS WOULD WANT IS TO BE CAST IN A LOSER ROLE SIMILAR TO MR CHASE'S NEC TECHNOLOGIES BOXBORO MASS HAS PUT ITS ESTIMATED 35 MILLION COMPUTER ADVERTISING ACCOUNT INTO REVIEW THE INCUMBENT DDB NEEDHAM NEW YORK A UNIT OF OMNICOM GROUP IS COMPETING TO HOLD ONTO THE BUSINESS BUT THE AGENCY WILL FIND IT HAS PLENTY OF COMPETITION WE'RE INVITING AGENCIES FROM COAST TO COAST TO PARTICIPATE AN NEC SPOKESMAN SAID CONSULTANT WILLIAM WEILBACHER OF DENNIS MASS IS CONDUCTING THE SEARCH NEC IS LOOKING AROUND LESS THAN THREE MONTHS AFTER ONE OF ITS BIGGEST RIVALS INTERNATIONAL BUSINESS MACHINES CORP HIRED OMNICOM AGENCIES TO CREATE ITS PERSONALCOMPUTER ADVERTISING MERKLEY NEWMAN HARTY THE OMNICOM STARTUP SHOP WON THE US PORTION OF THE IBM BUSINESS WHILE DDB'S PARIS OFFICE WON THE EUROPEAN PART SOME EXECUTIVES SAID NEC A UNIT OF NEC CORP OF JAPAN DECIDED IBM'S ACCOUNT WAS TOO CLOSE FOR COMFORT DDB DECLINED TO COMMENT THE NEC SPOKESMAN SAID THE REVIEW'S PURPOSE WAS TO ENSURE THE COMPANY IS MAXIMIZING ITS ADVERTISING INVESTMENT THE NEC REVIEW COMES JUST AS ANOTHER BIG COMPUTER FIRM DIGITAL EQUIPMENT CORP OF MAYNARD MASS IS STUDYING A POSSIBLE CONSOLIDATION ACCORDING TO DAVID SIMLER DIGITAL'S ACTING CORPORATE ADVERTISING MANAGER DIGITAL CURRENTLY SPLITS ITS ESTIMATED 30 MILLION IN US ADVERTISING AMONG SIX AGENCIES INCLUDING YOUNG & RUBICAM NEW YORK WHICH WAS HIRED IN NOVEMBER TO CREATE PERSONALCOMPUTER ADS CONSULTING FIRM MORGAN ANDERSON IS EXPECTED TO OVERSEE THE INTERNAL REVIEW CHRYSLER CORP SAID IT IS HOOKING UP WITH INTERACTIVE NETWORK FOR A TEST DURING THE SUPER BOWL OF TEASER ADS FOR THE DODGE AND PLYMOUTH NEON CHRYSLER PLANS TO AIR THREE SPOTS FOR THE NEON DURING THE NBC NETWORK'S SUPER BOWL BROADCAST SUNDAY THE COMPANY IS HOOKING UP WITH INTERACTIVE NETWORK TO FIND OUT WHETHER VIEWERS PAID ATTENTION TO THEM INTERACTIVE NETWORK SUBSCRIBERS USE WIRELESS HANDHELD DEVICES TO PLAY ALONG WITH REGULAR TELEVISION BROADCASTS DURING THE SUPER BOWL THEY WILL BE ABLE TO PREDICT PLAYS AND COMPETE WITH EXPERT CALLS WHEN THE GAME IS OVER CHRYSLER WILL QUIZ THE SUBSCRIBERS ABOUT FEATURES PRICE AND DEALER LOCATIONS OF THE NEONINFORMATION CONTAINED IN THE PRECEDING NEON ADS INTERACTIVE NETWORK IS BASED IN SUNNYVALE CALIF IT DOESN'T DISCLOSE THE NUMBER OF SUBSCRIBERS BUT EXECUTIVES ESTIMATE THEM AT ABOUT 5000 LOCATED IN SAN FRANCISCO SACRAMENTO AND CHICAGO 9401270016 940127 TECHNOLOGY & HEALTH NCR ADOPTS A NEW NAME AT&T GLOBAL INFORMATION NEW YORK NCR CORP IN A BOW TO ITS ACQUISITION BY AMERICAN TELEPHONE & TELEGRAPH CO CHANGED ITS NAME TO AT&T GLOBAL INFORMATION SOLUTIONS JERRE STEAD CHIEF EXECUTIVE OFFICER OF THE DAYTON OHIO COMPANY THAT AT&T ACQUIRED IN A HOSTILE TAKEOVER IN 1991 SAID IT WAS TIME TO DROP THE NCR NAME TO BETTER REFLECT ITS MOVES INTO COMPUTING INFORMATION NETWORKING AND SYSTEMS INTEGRATION HE SAID THAT AT&T'S SURVEY OF CLIENTS SHOWED THAT THEY STILL IDENTIFIED THE NCR NAME TOO MUCH WITH THE FORMER CASHREGISTER BUSINESS OF THE COMPANY WHICH WAS STARTED LATE IN THE 19TH CENTURY AS THE NATIONAL CASH REGISTER CO 9401270015 940127 TECHNOLOGY & HEALTH COMPAQ'S PROFIT ROSE 70 IN 4TH QUARTER AS PC SALES SURGED HOUSTON COMPAQ COMPUTER CORP SAID ITS NET INCOME JUMPED 70 IN THE FOURTH QUARTER ON A CRUSH OF HOLIDAY PERSONALCOMPUTER SALES THE NATION'S THIRDLARGEST PERSONALCOMPUTER MAKER REPORTED NET INCOME OF 151 MILLION OR 174 A SHARE COMPARED WITH 89 MILLION OR 111 A SHARE A YEAR EARLIER SALES SURGED TO 22 BILLION FROM 14 BILLION THOUGH COMPAQ'S RESULTS CAME IN ABOUT 20 CENTS A SHARE ABOVE MOST ANALYSTS' ESTIMATES ITS STOCK SANK 2125 OR 26 TO 81125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TRADERS ATTRIBUTED THE DROP TO PROFITTAKING AND SCATTERED WORRIES THAT COMPAQ'S DECISION TO BUY COMPUTER CHIPS FROM ADVANCED MICRO DEVICES INC AS WELL AS INTEL CORP COULD COST IT SOME CORPORATE CUSTOMERS BUT ANALYSTS GENERALLY PRAISED COMPAQ'S RESULTS AND SAID THEY SAW NO EVIDENCE THAT THE COMPANY'S ZOOMING GROWTH WAS ABOUT TO SLOW COMPAQ REALLY SEEMS TO BE BREAKING AWAY FROM THE PACK SAID TODD D BAKAR A TECHNOLOGY ANALYST AT HAMBRECHT & QUIST IN SAN FRANCISCO STILL COMPAQ WAS HARDLY ALONE IN ITS IMPRESSIVE FOURTHQUARTER SHOWING AST RESEARCH INC AND INTERNATIONAL BUSINESS MACHINES CORP ALSO REPORTED STRONG YEAREND PC NUMBERS PRIMARILY BECAUSE OF A SURGE OF BUSINESS FROM CONSUMERS BUYING COMPUTERS FOR THE HOME DARYL J WHITE COMPAQ'S CHIEF FINANCIAL OFFICER SAID THE COMPANY'S PROLINEA AND PRESARIO LINES TURNED IN PARTICULARLY IMPRESSIVE RESULTS DURING THE QUARTER MR WHITE SAID COMPAQ WILL FOCUS THIS YEAR ON BUILDING UP ITS INVENTORY IN ANTICIPATION OF CONTINUED STRONG DEMAND COMPAQ SHIPPED 31 MILLION UNITS LAST YEAR UP 98 FROM THE PREVIOUS YEAR 9401270014 940127 BUSINESS BRIEF BALL CORP POSTS LOSS FOR 4TH PERIOD YEAR REFLECTING CHARGES MUNCIE IND BALL CORP HAD A LOSS OF 587 MILLION OR 202 A SHARE FOR THE FOURTH QUARTER REFLECTING A 58 MILLION CHARGE FOR CERTAIN RESTRUCTURING ACTIONS SEPARATELY THE COMPANY CUT ITS QUARTERLY DIVIDEND TO 15 CENTS A SHARE FROM 31 CENTS A SHARE SAYING THE NEW RATE IS CONSISTENT WITH CHANGES IN ITS CAPITALIZATION AS A RESULT OF LAST YEAR'S SPINOFF OF ALLTRISTA CORP IN THE FOURTH QUARTER OF 1992 THE MAKER OF METAL AND GLASS CONTAINERS EARNED 11 MILLION OR 39 CENTS A SHARE SALES ROSE 63 TO 5577 MILLION FROM 5248 MILLION BALL SAID THE RESTRUCTURING ACTIONS INCLUDE PLANT CLOSINGS AND CONSOLIDATIONS PRIMARILY WITHIN ITS PACKAGING OPERATIONS THE CHARGE COVERS EMPLOYEE SEVERANCE AND RELOCATION COSTS WRITEDOWNS OF FIXED ASSETS AND EQUIPMENT COSTS ASSOCIATED WITH THE ELIMINATION OF CERTAIN PRODUCT LINES AS WELL AS COSTS ASSOCIATED WITH THE PREVIOUSLY ANNOUNCED CLOSING OF BALL'S ASHEVILLE NC GLASS FACILITY THE COMPANY SAID THE RESTRUCTURING PROVISION WILL HELP IMPROVE ITS OVERALL COMPETITIVE POSITION IN ITS CORE PACKAGING AND AEROSPACE MARKET BY HELPING TO ELIMINATE EXCESS CAPACITY REDUCE COSTS AND TRIM UNPROFITABLE PRODUCT LINES AS A RESULT THE COMPANY SAID IT EXPECTS TO REDUCE THE NUMBER OF OPERATING LOCATIONS BY 10 AND ITS WORK FORCE BY 8 FOR ALL OF 1993 BALL HAD A LOSS OF 651 MILLION OR 238 A SHARE INCLUDING A 347 MILLION CHARGE FOR AN ACCOUNTING CHANGE AND 66 MILLION IN RESTRUCTURING CHARGES IN 1992 THE COMPANY EARNED 671 MILLION OR 245 A SHARE SALES FOR 1993 WERE 244 BILLION COMPARED WITH 218 BILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BALL'S SHARES FELL 2 OR 71 TO 26 9401270013 940127 GLENDALE FEDERAL HAD LOSS OF 398 MILLION IN FISCAL 2ND PERIOD GLENDALE CALIF GLENDALE FEDERAL BANK POSTED A FISCAL SECONDQUARTER NET LOSS OF 398 MILLION SURPRISING ANALYSTS AND INCREASING THE LIKELIHOOD THAT THE TROUBLED THRIFT WILL BE ACQUIRED IN THE NEAR FUTURE THE LOSS EQUIVALENT TO 126 A SHARE WAS LESS SEVERE THAN THE YEAREARLIER LOSS OF 794 MILLION OR 232 A SHARE BUT DEEPER THAN WHAT ANALYSTS HAD ANTICIPATED EXPECTATIONS HAD RANGED FROM A NET LOSS OF 20 CENTS TO 102 A SHARE FOR THE PERIOD ENDED DEC 31 THE COMPANY SAID THAT PERSHARE COMPARISONS TO PRIOR PERIODS ARE MISLEADING BECAUSE OF A RECENT RECAPITALIZATION AND CHANGE IN ITS CORPORATE STRUCTURE GLENDALE WHICH HAS STRUGGLED FOR SEVERAL YEARS TO AVOID A GOVERNMENT SEIZURE RESULTING FROM ITS HUGE PILE OF BAD ASSETS NOW FACES DECLINING PROFITABILITY ON LOANS AND INVESTMENTS THAT HAVEN'T SOURED MEANWHILE AT MANY CALIFORNIA FINANCIAL INSTITUTIONS UNLIKE AT GLENDALE RISING LOAN BALANCES HAVE CONTRIBUTED TO PROFIT GAINS NET INTEREST INCOME PLUNGED 22 TO 668 MILLION FROM 857 MILLION A YEAR EARLIER REFLECTING A LOWER SPREAD OR THE DIFFERENCE BETWEEN WHAT THE THRIFT PAYS FOR DEPOSITS AND WHAT IT CHARGES FOR LOANS ITS SPREAD FELL TO A RELATIVELY THIN 186 FROM 243 FURTHER ALTHOUGH TOTAL PROBLEM ASSETS PEAKED LAST FEBRUARY NONPAYING LOANS HAVE OMINOUSLY STARTED TO CREEP UP AGAIN RISING TO 6468 MILLION FROM 6304 MILLION AT THE END OF THE FISCAL FIRST QUARTER GLENDALE CITED INCREASED DELINQUENCIES IN NONRESIDENTIAL AND APARTMENT LOANS THE BANK'S LOANLOSS PROVISION WAS 375 MILLION DOWN FROM 449 MILLION IN THE FISCAL FIRST QUARTER AND 772 MILLION A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK CLOSED AT 750 DOWN 25 CENTS 9401270012 940127 WHO'S NEWS COMSAT CORP COMSAT CORP BETHESDA MD DOLORES D WHARTON 66 YEARS OLD WAS NAMED A DIRECTOR OF THE COMMUNICATIONS INFORMATION AND ENTERTAINMENT DISTRIBUTIONSERVICES COMPANY FILLING A VACANCY ON THE 15MEMBER BOARD MS WHARTON IS PRESIDENT OF THE FUND FOR CORPORATE INITIATIVES INC IN NEW YORK 9401270011 940127 HEALTH PROSTATECANCER STUDY SUPPORTS GOSLOW TACTICS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SUPPORTS THE NOTION THAT A WAITANDSEE STRATEGY IS AS VALID AS SURGERY OR RADIATION FOR TREATMENT OF EARLYSTAGE PROSTATE CANCER THE REPORT IS THE LATEST EFFORT TO ADDRESS A GROWING DILEMMA IN THE MANAGEMENT OF THE DISEASE WHICH IS EXPECTED TO KILL 38000 US MEN THIS YEAR A NEW DIAGNOSTIC TEST AND AGGRESSIVE SCREENING CAMPAIGNS ARE HELPING TO INCREASE EARLY DETECTION AND TREATMENT OF PROSTATE CANCER BUT THERE IS LITTLE STATISTICAL EVIDENCE THAT SUCH EFFORTS PROLONG SURVIVAL SINCE AGGRESSIVE TREATMENTS ESPECIALLY SURGICAL REMOVAL OF THE PROSTATE ARE COSTLY AND CARRY SIGNIFICANT RISKS AND SINCE DOCTORS CAN'T PREDICT RELIABLY WHICH PATIENTS ARE LIKELY TO BENEFIT FROM SURGERY OR WHICH COULD BE HARMED BY A CONSERVATIVE WATCHFUL WAITING APPROACH UROLOGISTS ARE EMBROILED IN CONTROVERSY OVER THE BEST STRATEGIES FOR TREATING EARLYSTAGE DISEASE THE MESSAGE OF OUR STUDY IS THAT WATCHFUL WAITING IS A REASONABLE ALTERNATIVE TO SURGERY AND RADIATION SAID GERALD W CHODAK PROFESSOR OF SURGERY AT THE UNIVERSITY OF CHICAGO AND DIRECTOR OF THE PROSTATE AND UROLOGY CENTER AT WEISS MEMORIAL HOSPITAL IN CHICAGO BUT HE WARNED THAT DOCTORS AND PATIENTS SHOULDN'T READ THE FINDINGS AS A BROAD RECOMMENDATION AGAINST AGGRESSIVE TREATMENT DECIDING WHAT IS THE BEST APPROACH DEPENDS TO A GREAT EXTENT ON THE PREFERENCES OF THE INDIVIDUAL PATIENT DR CHODAK SAID THIS IS ABOUT TRADEOFFS DR CHODAK IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT THE REPORT DREW SHARP CRITICISM FROM WILLIAM CATALONA CHIEF OF UROLOGY AT WASHINGTON UNIVERSITY MEDICAL SCHOOL ST LOUIS WHOSE RESEARCH HAS LED TO WIDESPREAD USE OF A BLOOD TEST KNOWN AS THE PSA TEST TO DETECT PROSTATE CANCER IN ITS EARLY STAGES THESE RESEARCHERS ARE PRESENTING A TERRIBLE PICTURE OF ACTIVE TREATMENT AND A ROSY PICTURE OF WATCHFUL WAITING AND THEY'RE MISLEADING THE PUBLIC DR CATALONA DECLARED AS A RESULT OF THE PSA TEST MORE THAN 200000 US MEN ARE EXPECTED TO BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR MANY OF THEM WHEN THE DISEASE IS CONFINED TO THE PROSTATE AND CONSIDERED TREATABLE THESE MEN WILL HAVE A BRIEF WINDOW OF OPPORTUNITY TO GET CURED THROUGH SURGERY HE SAID IF THEY GET CURED THEY'RE CLEAN FOR THE REST OF THEIR LIVES HE ALSO MAINTAINED THAT THE SUBJECTS IN THE STUDY WERE DOMINATED BY OLDER MEN WITH LOWGRADE TUMORS THE KIND OF MEN FOR WHOM WATCHFUL WAITING IS ALREADY OFTEN RECOMMENDED THEY AREN'T REPRESENTATIVE OF A CHANGING POPULATION OF PATIENTS WITH PROSTATE CANCER HE SAID THE STUDY IS BASED ON AN ANALYSIS OF SIX OTHER REPORTS INVOLVING 828 MEN FROM ISRAEL SCOTLAND SWEDEN AND THE US ALL WERE BELIEVED TO HAVE CANCER CONFINED TO THE PROSTATE GLAND AND NONE WERE TREATED INITIALLY THOUGH MANY WERE GIVEN HORMONE TREATMENTS LATER IN THE COURSE OF THEIR DISEASE DR CHODAK AND HIS COLLEAGUES FOUND THAT 87 OF THOSE CONSIDERED TO HAVE EITHER GRADE 1 OR GRADE 2 TUMORS CONSIDERED LESS AGGRESSIVE WHEN THEY WERE DIAGNOSED WERE STILL ALIVE 10 YEARS LATER JUST 34 OF MEN WITH GRADE 3 TUMORS SURVIVED WITH THE DISEASE FOR 10 YEARS THE FIGURES DON'T INCLUDE MEN WHO DIED OF OTHER CAUSES DR CHODAK SAID SOME OTHER STUDIES INDICATE THAT 10YEAR SURVIVAL RATES FOR SURGERY AND RADIATION ARE ABOUT 94 BUT JOSEPH E OESTERLING A UROLOGIST AT THE MAYO CLINIC ROCHESTER MINN SAID THAT A VALID COMPARISON WITH THE RESULTS OF DR CHODAK'S STUDY ISN'T POSSIBLE BECAUSE OF DIFFERENCES IN STUDY METHODS AND GROUPS OF PATIENTS A STUDY PUBLISHED LAST YEAR SHOWED THAT SURGICAL REMOVAL OF THE PROSTATE AS A CANCER TREATMENT INCREASED SIXFOLD BETWEEN 1984 AND 1990 PROVOKING CONCERN THAT MANY PATIENTS WERE RISKING SUCH COMPLICATIONS AS IMPOTENCE AND INCONTINENCE WITH LIMITED EVIDENCE OF BENEFIT DR OESTERLING SAID INCREASED USE OF THE PROCEDURE KNOWN AS RADICAL PROSTATECTOMY PARTLY REFLECTS NEW SURGICAL TECHNIQUES THAT CAN REDUCE CHANCES OF COMPLICATIONS HE SAID THE NEW STUDY PROVIDES MORE EVIDENCE TO SUPPORT CONSERVATIVE APPROACHES FOR OLDER MEN OR THOSE WITH OTHER DEBILITATING ILLNESSES FOR PEOPLE THAT HAVE LESS THAN 10 YEARS TO LIVE WATCHFUL WAITING COULD GIVE YOU RESULTS SIMILAR TO WHAT YOU WOULD GET WITH RADIATION OR SURGERY DR OESTERLING SAID BUT DR CHODAK MAINTAINED THAT FEW UROLOGISTS FEEL COMFORTABLE RECOMMENDING WATCHFUL WAITING EVEN IN SUCH CASES BECAUSE PREVIOUS STUDIES HAVE BEEN FLAWED AND BECAUSE THERE AREN'T ANY RELIABLE DATA COMPARING THE RESULTS OF SURGERY RADIATION AND WATCHFULWAITING HEADTOHEAD AMONG PATIENTS WITH SIMILAR LEVELS OF DISEASE HE ARGUED THAT THE STUDY SHOULD GIVE DOCTORS CONFIDENCE THAT SIMPLY MONITORING THE COURSE OF DISEASE IS A VALID APPROACH FOR MANY PATIENTS THE REPORT ALSO FOUND THAT CANCER HAD SPREAD BEYOND THE PROSTATE GLAND AFTER 10 YEARS IN 19 OF PATIENTS DIAGNOSED WITH A GRADE 1 TUMOR AND 42 OF THOSE WITH A GRADE 2 TUMOR THOSE RESULTS CLEARLY DEMONSTRATE THAT PROSTATE CANCER IS A PROGRESSIVE DISEASE WHEN MANAGED CONSERVATIVELY THE RESEARCHERS WROTE DR CHODAK SAID BOTH PATIENTS AND THEIR DOCTORS CAN WEIGH SUCH CHANCES IN CONSIDERING A CHOICE OF TREATMENT WE CAN'T PREDICT FOR SURE WHO WILL DO WELL WITH WATCHFUL WAITING AND WHO WILL DO POORLY HE SAID EACH INDIVIDUAL HAS A DILEMMA WHAT IS HE WILLING TO RISK IN ORDER TO GAIN A BENEFIT WHILE THE FINDINGS DON'T POINT CLEARLY TO ONE OPTION OR ANOTHER HE ADDED THEY WILL MAKE IT EASIER TO COUNSEL PATIENTS ABOUT WHAT HAPPENS TO THOSE WHO CHOOSE WATCHFUL WAITING 9401270010 940127 WHAT'S NEWS WORLDWIDE BENTSEN INDICATED WHITE HOUSE FLEXIBILITY ON REGIONAL HEALTH ALLIANCES THE TREASURY SECRETARY SUGGESTED THAT THE CLINTON ADMINISTRATION IS WILLING TO MODIFY ITS HEALTHCARE PLAN IN ORDER TO MAKE IT EASIER FOR COMPANIES TO INSURE WORKERS THEMSELVES INSTEAD OF BEING FORCED INTO REGIONAL INSURANCE POOLS THE POOLS WHICH ARE CALLED HEALTH ALLIANCES ARE INTENDED TO BRING BUSINESSES AND INDIVIDUALS TOGETHER TO PURCHASE HEALTH COVERAGE THE ALLIANCES HAVE BECOME ONE OF THE MOST CONTROVERSIAL ASPECTS OF THE PRESIDENT'S HEALTHCARE PROPOSAL BENTSEN'S CONCILIATORY TONE COINCIDES WITH EFFORTS BY SENIOR DEMOCRATS TO NARROW DIFFERENCES WITH INDUSTRY AND BUILD SUPPORT IN CONGRESS FOR THE CORE OF THE PRESIDENT'S PLAN RUSSIA'S FORMER FINANCE CHIEF DENOUNCED PRESIDENT YELTSIN WHO HAD ASKED THE REFORMER TO STAY IN THE CABINET SAYING GOVERNMENT POLICIES COULD PROVOKE ECONOMIC COLLAPSE AND SOCIAL UNREST BY REVIVING A SOVIETSTYLE ECONOMY FYODOROV'S DEPARTURE WAS A BOOST FOR PRIME MINISTER CHERNOMYRDIN THE RUSSIAN PROSECUTOR GENERAL BEGAN A CRIMINAL INVESTIGATION INTO ALLEGED WARMONGERING BY AN EXTREME NATIONALIST POLITICIAN ZHIRINOVSKY WHO LEADS ONE OF THE BIGGEST BLOCS IN PARLIAMENT THE PROBE REPORTEDLY WAS LAUNCHED IN RESPONSE TO COMPLAINTS THAT ZHIRINOVSKY HAD BEEN SPREADING WAR PROPAGANDA HE DENIED THE REPORTS UKRAINE CAN EXPECT TO RECEIVE A US COMMITMENT TO DOUBLE ECONOMIC AID TO THE KIEV GOVERNMENT WASHINGTON OFFICIALS DISCLOSED AFTER TALKS WITH A DELEGATION OF UKRAINIAN OFFICIALS SEEKING HELP IN STABILIZING THE EXSOVIET REPUBLIC'S ECONOMY US OFFICIALS SAID THE CURRENT COMMITMENT OF 155 MILLION WILL DOUBLE BELARUS'S SOVIETERA PARLIAMENT OUSTED THE COUNTRY'S LIBERAL LEADER STANISLAV SHUSHKEVICH HIS OUSTER LINKED TO CORRUPTION CHARGES BUT PLAINLY INTENDED AS A REBUFF TO MARKET REFORMS AND TO A FOREIGN POLICY ALIGNED WITH RUSSIA CAME TWO WEEKS AFTER STANISLAV RECEIVED CLINTON'S BACKING DURING HIS TOUR OF THE FORMER SOVIET UNION THE US REJECTED A RUSSIAN PROPOSAL FOR A UN SECURITY COUNCIL MEETING ON BOSNIA AND DISMISSED A FRENCH PLAN TO PRESSURE MUSLIMS INTO A PEACE DEAL CALLING IT A STRANGE MORAL CALCULUS THE OFFICIAL COMMENTS CAME ONE DAY AFTER SECRETARY OF STATE CHRISTOPHER RETURNED FROM TALKS WITH FRENCH OFFICIALS PRESSING FOR URGENT MEASURES CIVILIANS MOBBED A UN FOOD AID CONVOY AND WOUNDED SIX OF ITS BOSNIAN POLICE ESCORTS IN A GRIM DEMONSTRATION OF ESCALATING LAWLESSNESS DRIVEN BY HUNGER AND DESPERATION THE OFFICERS SOME OF WHOM SUFFERED BULLET WOUNDS WERE ATTACKED AS THE 10TRUCK CONVOY ENTERED TICICI A MUSLIM VILLAGE NORTHWEST OF SARAJEVO A WAITANDSEE STRATEGY IS A REASONABLE ALTERNATIVE TO SURGERY OR RADIATION FOR TREATMENT OF EARLYSTAGE PROSTATE CANCER ACCORDING TO A NEW STUDY UROLOGISTS HAVE ARGUED OVER THE BEST STRATEGIES FOR TREATING THE EARLYSTAGE DISEASE BECAUSE AGGRESSIVE TREATMENTS ARE COSTLY AND CARRY SIGNIFICANT RISKS LYME DISEASE RESEARCHERS DEVELOPED A GENEBASED DIAGNOSTIC TEST THAT MIGHT SOLVE PROBLEMS CAUSED BY FREQUENT MISDIAGNOSIS OF THE ILLNESS THE RESEARCH TEAM WAS LED BY THE DOCTOR WHO IN 1976 DISCOVERED THE BACTERIUM THAT CAUSES THE DISEASE WHICH PRODUCES FLULIKE SYMPTOMS AND CAN LEAD TO CHRONIC ARTHRITIS A YOUNG MAN LUNGED AT BRITAIN'S PRINCE CHARLES AND FIRED TWO BLANK SHOTS FROM A STARTER'S PISTOL DURING AN OUTDOOR CEREMONY IN SYDNEY MARKING AUSTRALIA'S NATIONAL DAY THE ASSAILANT A KOREAN STUDENT WHO SAID HE WAS UPSET ABOUT THE PLIGHT OF CAMBODIAN BOAT PEOPLE WAS IMMEDIATELY ARRESTED THE PRINCE WAS UNHARMED THE HOUSE SPEAKER DECLARED THERE ISN'T ANY NEED FOR CONGRESSIONAL HEARINGS ON CLINTON'S PAST REALESTATE DEALINGS IN ARKANSAS FOLEY'S COMMENTS CAME A DAY AFTER HOUSE MINORITY LEADER MICHEL CALLED FOR HEARINGS INTO THE PRESIDENT'S WHITEWATER INVESTMENT BUT BACKED OFF HIS PRIOR REQUEST THAT THE HOUSE FORM A SPECIAL COMMITTEE JORDAN'S KING HUSSEIN VOICED HIS READINESS TO MEET WITH ISRAEL'S RABIN BEFORE TOO LONG AND ADDED THAT SUCH A MEETING COULD TAKE PLACE BEFORE FULL PEACE WAS ESTABLISHED IN CAIRO MEANWHILE SIGNS OF OPTIMISM EMERGED FROM PLOISRAELI NEGOTIATIONS ON PLANS FOR PALESTINIAN AUTONOMY IN THE OCCUPIED TERRITORIES 9401270009 940127 FOREIGN EXCHANGE DOLLAR IS ABANDONED AND DRIFTS LOWER IN FACE OF STRONG YEN SWISS FRANC SLIDE BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN'S CONTINUING STRENGTH AND A SLIDE BY THE SWISS FRANC MOBILIZED CURRENCY MARKETS YESTERDAY THE DOLLAR WAS ABANDONED TO DRIFT QUIETLY LOWER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17450 MARKS DOWN FROM 17496 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11005 YEN OFF FROM 11090 YEN STERLING WAS TRADING UNCHANGED AT 14945 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10965 YEN AND AT 17450 MARKS THERE WAS LITTLE INTEREST WEDNESDAY IN THE DOLLAR WHICH GENERATED ALMOST NO REACTION WHEN IT FELL THROUGH A LONGSTANDING SUPPORT LEVEL AT 17480 MARKS BUT EVEN THE US CURRENCY LOOKED TOUGH AGAINST THE SWISS FRANC WITH THE DOLLAR UP TO 14710 FRANCS LATE IN NEW YORK COMPARED WITH 14670 FRANCS LATE TUESDAY THE SWISS CURRENCY USUALLY BOUGHT AS A HAVEN FROM PROBLEMS ELSEWHERE IN EUROPE HAS RECEIVED A FREE RIDE HIGHER FOR MOST OF THE PAST 12 MONTHS ON TURMOIL IN RUSSIA AND IN THE EUROPEAN MONETARY SYSTEM YESTERDAY INVESTORS FOCUSED INSTEAD ON SWITZERLAND'S OWN ECONOMIC FUNDAMENTALS AN ARTICLE IN THE WALL STREET JOURNAL EUROPE HIGHLIGHTED SWITZERLAND'S SAGGING INDUSTRIAL OUTPUT AND RETAIL SALES AND INCREASING UNEMPLOYMENT LATER IN THE DAY THE SWISS GOVERNMENT RELEASED AN INTERNATIONAL MONETARY FUND REPORT THAT NOTED THE NEED TO GET THE COUNTRY'S BUDGET DEFICIT UNDER CONTROL THE EFFECT WAS A SWISS FRANC SELLOFF PARTICULARLY AGAINST THE MARK WHICH HAS FALLEN 9 AGAINST THE FRANC DURING THE PAST 12 MONTHS THE MARK WAS TRADING AT 08430 FRANC LATE YESTERDAY IN NEW YORK COMPARED WITH 08379 FRANC LATE TUESDAY THE SWISS FRANC FELL TO 7481 YEN FROM 7504 YEN LATE TUESDAY FOLLOWING THE MARKET'S RUSH TOWARD THE JAPANESE CURRENCY THE YEN FIRST JUMPED DURING AUSTRALIAN TRADING WHEN SENIOR US TRADE OFFICIALS TOLD REPORTERS THAT NEGOTIATIONS ON AUTOS AND AUTO PARTS WERE AT AN IMPASSE CURRENCY MARKETS ARE CONCERNED THAT IF JAPAN WON'T ACT TO OPEN MARKETS AND CUT ITS TRADE SURPLUS THE US WILL RESORT TO PUBLIC CALLS FOR A HIGHER YEN THEN DURING ASIAN TRADING REPORTS EMERGED THAT ECONOMIST C FRED BERGSTEN WANTS TO SEE THE DOLLAR TRADING IN A SIGNIFICANTLY LOWER RANGE AGAINST THE YEN MR BERGSTEN AN ADVISER TO FORMER PRESIDENT CARTER IS THOUGHT BY SOME PLAYERS TO HAVE THE EAR OF PRESIDENT CLINTON MR BERGSTEN'S OFFICE LATER CONFIRMED THAT THE ECONOMIST WANTS TO SEE THE DOLLAR IN A RANGE BETWEEN 90 YEN AND 110 YEN WELL BELOW CURRENT MARKET LEVELS NEWSSTARVED MARKETS JUMPED ON THE INITIAL REPORTS OF MR BERGSTEN'S VIEWS SENDING THE YEN HIGHER AGAINST MOST MAJOR CURRENCIES THE YEN GOT A LITTLE STARTER WITH THE BREAKDOWN OF TALKS AND THE BERGSTEN COMMENTS MADE PEOPLE TAKE NOTICE SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK IN NEW YORK I DON'T KNOW IF HE HAS ANY DIRECT INPUT INTO THE ADMINISTRATION BUT SOME PEOPLE FEEL THAT HE DOES MR FORCHESKI ADDED THAT IF THE DOLLAR FALLS THROUGH SUPPORT AT 10980 YEN PLAYERS WILL BEGIN TO DOUBT THE YEN DOWNTREND UNDER WAY SINCE THE FEDERAL RESERVE'S MASSIVE INTERVENTION IN AUGUST A BREAK OF 17350 MARKS ALSO WOULD BE SIGNIFICANT HE SAID THOUGH TRADERS ARE LIKELY TO WANT TO BUY DOLLARS ON ANY DIP AGAINST THE MARK MR FORCHESKI ADDED 9401270008 940127 WHO'S NEWS HOLOPHANE CORP HOLOPHANE CORP COLUMBUS OHIO TADD C SEITZ 51 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCOTTS CO MARYSVILLE OHIO AND ROBERT L PURDUM 58 CHAIRMAN OF ARMCO INC PITTSBURGH WERE NAMED DIRECTORS OF THIS MAKER AND MARKETER OF HIGHLY ENGINEERED LIGHTING FIXTURES AND SYSTEMS FOR INDUSTRIAL COMMERCIAL AND OUTDOOR APPLICATIONS THE APPOINTMENTS INCREASE THE SIZE OF HOLOPHANE'S BOARD TO SEVEN MEMBERS FROM SIX MR SEITZ WHO HAD BEEN ELECTED A DIRECTOR IMMEDIATELY AFTER THE COMPLETION OF THE COMPANY'S INITIAL PUBLIC OFFERING IN NOVEMBER 1993 SUCCEEDED FRED ULRICH WHO LEFT THE BOARD AT THAT TIME MR PURDUM IS A NEW ADDITION TO THE BOARD 9401270007 940127 MARKETING BRIEF NOTED PAYTV SONY CORP'S SONY PICTURES ENTERTAINMENT UNIT AGREED TO ACQUIRE A SUBSTANTIAL EQUITY INTEREST IN HBO OLE A PARTNERSHIP OF TIME WARNER INC'S HOME BOX OFFICE PAYTELEVISION UNIT AND OMNIVISION LATINAMERICAN ENTERTAINMENT INC CARACAS VENEZUELA A LATIN AMERICAN PAYTELEVISION SERVICE COMPANY HBO OLE IS A 24HOUR SPANISHLANGUAGE PAYTV NETWORK IN LATIN AMERICA WARNER BROS TIME WARNER INC'S WARNER BROS WORLDWIDE RETAIL WILL OPEN 50 MORE STORES IN 1994 INCLUDING FLAGSHIP STORES IN LONDON GLASGOW SCOTLAND AND BERLIN FOLLOWING THE SUCCESS OF ITS FIRST 60 STORES SELLING MERCHANDISE BASED ON WARNER BROS CARTOONS AND FILMS 9401270006 940127 FINANCING BUSINESS SHL SYSTEMHOUSE INC SHL SYSTEMHOUSE INC OTTAWA SAID IT WILL OFFER BETWEEN 50 MILLION AND 100 MILLION CANADIAN DOLLARS US381 MILLION AND US762 MILLION OF COMMON SHARES IN CANADA AND THE US THE NUMBER OF SHARES TO BE OFFERED AND THE PRICE HAVEN'T BEEN DETERMINED THE COMPUTER SERVICES COMPANY SAID IT WILL USE THE PROCEEDS TO FINANCE GROWTH AND EXPANSION THE UNDERWRITING GROUP WILL BE LED BY WOOD GUNDY INC AND RICHARDSON GREENSHIELDS OF CANADA LTD 9401270005 940127 CORPORATE FOCUS WHIRLPOOL IS EXPANDING IN EUROPE DESPITE THE SLUMP APPLIANCE MAKER IS POSTING HIGHER PROFITS AND GAINS IN MARKET SHARE BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BENTON HARBOR MICH THE EUROPEAN ECONOMY IS IN THE DOLDRUMS BUT IT DOESN'T LOOK SO BAD FROM HERE NEARLY THREE YEARS AFTER COMPLETING THE ACQUISITION OF THE EUROPEAN APPLIANCE BUSINESS OF PHILIPS ELECTRONICS NV WHIRLPOOL CORP IS POSTING HIGHER PROFITS AND BIGGER MARKET SHARE IN EUROPE EVEN AS THE OVERALL INDUSTRY EXPERIENCES A RECESSIONINDUCED SLUMP THERE ARE SIGNS THAT THE WORST IS OVER BUT A RECOVERY IS EXPECTED TO BE SLOW EXECUTIVES AT THE COMPANY'S WORLD HEADQUARTERS HERE SAY THEIR EUROPEAN APPLIANCE BUSINESS WILL CONTRIBUTE TO RECORD CORPORATE OPERATING EARNINGS BEFORE SPECIAL ONETIME CHARGES WHEN 1993 RESULTS ARE RELEASED EARLY NEXT MONTH IN 1992 WHIRLPOOL POSTED RECORD PROFIT OF 205 MILLION OR 290 A SHARE ON REVENUE OF 73 BILLION WHILE SOME COMPANIES SUCH AS US RIVAL MAYTAG CORP STRUGGLE WITH GLOBAL STRATEGIES WHIRLPOOL WINS RAVES FROM ANALYSTS FOR MAKING ITS AGGRESSIVE EXPANSION WORK BY MOVING INTO EUROPE AND INTO DEVELOPING NATIONS WHIRLPOOL AIMS TO TAP GROWTH AREAS TO COMPLEMENT ITS MATURE SLOWGROWTH BUSINESS IN NORTH AMERICA IT'S ALSO PLOTTING A MOVE INTO ASIA WHERE IT NOW HAS MARKET SHARE OF ONLY 1 BUT THE COMPANY AIMS TO HAVE FIVE MANUFACTURING FACILITIES IN ASIA IN THE NEXT FEW YEARS WITH THE NO 1 MARKET POSITION IN NORTH AMERICA NO 3 POSITION IN EUROPE AND A LEADING PRESENCE IN SOUTH AMERICA WHIRLPOOL ALREADY IS THE BEST POSITIONED APPLIANCE COMPANY FOR THE 1990S ASSERTS ANALYST JERRY HERMAN OF KEMPER SECURITIES INC IN CHICAGO WALL STREET SEEMS TO AGREE THE COMPANY'S SHARES WERE UP 875 CENTS TO 6575 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NOT FAR FROM THE 52WEEK HIGH OF 68 THAT'S TWICE THEIR LEVEL OF MID1991 WHEN WHIRLPOOL COMPLETED ITS TWOSTEP ACQUISITION OF THE PHILIPS BUSINESS FOR A ABOUT 1 BILLION WHIRLPOOL ACQUIRED ITS INITIAL 53 STAKE IN JANUARY 1989 AS THE THIRDLARGEST AMONG SOME 100 APPLIANCE MAKERS VYING FOR BUSINESS IN EUROPE WHIRLPOOL FACES STIFF COMPETITION AND DESPITE IMPROVEMENT WHIRLPOOL'S OPERATING MARGIN OF ABOUT 56 IN EUROPE IS FAR FROM ITS GOAL OF 10 MOREOVER WITH THE STRONGER ROLE OF UNIONS AND POLITICAL RESISTANCE TO LAYOFFS AND PLANT CLOSINGS IT TAKES LONGER TO TRIM COSTS IN EUROPE THAN IN THE US STILL WHIRLPOOL HAS ALREADY SIMPLIFIED ITS ORGANIZATION AS EUROPE MOVES TOWARD A SINGLE MARKET SEPARATE SALES ORGANIZATIONS IN 17 COUNTRIES HAVE BEEN REPLACED BY FOUR REGIONAL SALES OFFICES THE COMPANY CUT INVENTORIES AND WHITTLED THE NUMBER OF WAREHOUSES FROM 30 TO 16 THE GOAL IS TO REDUCE THAT TO FIVE OR SIX SAYS HANK BOWMAN PRESIDENT OF WHIRLPOOL EUROPE BV AT THE SAME TIME GLOBAL BUYING OF PARTS DECREASES COSTS AND CONTRIBUTES TO A 40 REDUCTION IN THE NUMBER OF SUPPLIERS TO EUROPEAN OPERATIONS TECHNOLOGY IS ALSO SHARED ACROSS BORDERS THERE'S A DRAMATIC OPPORTUNITY FOR PRODUCT IMPROVEMENT SAYS MR BOWMAN IN A TELEPHONE INTERVIEW FROM WHIRLPOOL'S EUROPEAN HEADQUARTERS IN COMERIO ITALY WHIRLPOOL'S NEW EUROPEAN DRYER HAS 22 FEWER PARTS YET WHIRLPOOL SAYS IT'S MORE EFFICIENT AND OF HIGHER QUALITY THAN ITS PREVIOUS OFFERING ON THE OUTSIDE IT LOOKS EUROPEAN BUT TEAR THAT BABY APART AND IT'S DESIGNED LIKE OUR US DRYER WHICH WE BELIEVE IS THE LOWCOST PRODUCT IN THE US SAYS WILLIAM MAROHN WHIRLPOOL'S PRESIDENT AND CHIEF OPERATING OFFICER WHO PRECEDED MR BOWMAN AS HEAD OF EUROPEAN OPERATIONS WHIRLPOOL PLANS TO SPEND HUNDREDS OF MILLIONS OF DOLLARS OVER THE NEXT FEW YEARS TO REMAKE ITS EUROPEAN APPLIANCES EVEN AS IT CONTINUES TO PARE COSTS THE IDEA IS TO EXPLOIT WHAT THE COMPANY CALLS A VALUE GAP BETWEEN US AND EUROPEAN MARKETS MEASURED BY NUMBER OF HOURS WORKED EUROPEAN CONSUMERS PAY UP TO TWICE AS MUCH FOR MAJOR APPLIANCES AS THEIR US COUNTERPARTS WITH PRODUCT REDESIGN AND COSTCUTTING WHIRLPOOL FIGURES IT CAN GIVE EUROPEAN CUSTOMERS HIGHER QUALITY AND KEEP MORE PROFITS FOR ITSELF A PIECE WE'LL SHARE WITH OUR CUSTOMERS AND A PIECE WE'LL SHARE WITH OUR SHAREHOLDERS SAYS MR MAROHN IN 1993 WHIRLPOOL'S EUROPEAN SHIPMENTS ROSE ABOUT 5 EVEN AS THE OVERALL EUROPEAN APPLIANCE BUSINESS WAS FLAT OR DOWN THAT MARKED THE FIFTH CONSECUTIVE ANNUAL INCREASE IN MARKET SHARE LEADING TO ITS CURRENT ESTIMATED SHARE OF 10 TO 15 OF THE MARKET BIG PLAYERS SUCH AS WHIRLPOOL HAVE A CHANCE TO ADD MARKET SHARE OVER THE NEXT FEW YEARS THE EUROPEAN APPLIANCE BUSINESS IS EXPECTED TO CONSOLIDATE MUCH AS THE US APPLIANCE INDUSTRY DID IN THE 1970S AND 1980S EUROPE HAS A COLLECTION OF 200 BRAND NAMES MANY OF THEM POPULAR IN JUST ONE COUNTRY THE BIGGEST PLAYER SWEDEN'S AB ELECTROLUX IS ABOUT TO GET BIGGER WITH THE PLANNED ACQUISITION OF THE APPLIANCE UNIT OF GERMANY'S AEG AG THE NO 2 COMPANY BOSCHSIEMENS HAUSGERATE GMBH HAS A MARKETING AND TECHNICAL AGREEMENT WITH MAYTAG WHILE MAYTAG HAS HIGH HOPES FOR THAT AGREEMENT IT HAS STUMBLED BADLY WITH ITS HOOVER APPLIANCE OPERATIONS LOCATED MAINLY IN GREAT BRITAIN WHIRLPOOL'S STRATEGY IS TO STAND OUT WITH STRONG PANEUROPEAN BRANDS RESEARCH TELLS US THAT THE TRENDS PREFERENCES AND BIASES OF CONSUMERS COUNTRY TO COUNTRY ARE REDUCING AS OPPOSED TO INCREASING SAYS MR BOWMAN ALTHOUGH REGIONAL PREFERENCES WILL REMAIN WHIRLPOOL SEES A CHANCE TO TAKE ADVANTAGE OF THE MOVE TOWARD A LESS FRACTURED EUROPE IN THE US WHIRLPOOL HAS BECOME THE MOST SUCCESSFUL AT BUILDING A LADDER OF BRANDS WITH KITCHENAID ON THE TOP RUNG WHIRLPOOL AND SEARS KENMORE LABELS IN THE BROAD MIDDLE AND ROPER AND ESTATE IN THE LOWER OR VALUE ENDS IT HOPES TO DO THE SAME IN EUROPE WITH ITS BAUKNECHT BRAND AT THE HIGH END WHIRLPOOL IN THE MIDDLE AND IGNIS WITH LOWERPRICED APPLIANCES WHEN WHIRLPOOL FIRST ENTERED EUROPE IT USED A DUAL PHILIPS/WHIRLPOOL BRAND TO INTRODUCE CONSUMERS TO ITS FLAGSHIP WHIRLPOOL BRAND BUT IT'S STARTING TO GO IT ALONE NOW SILENCING SKEPTICS WHO THOUGHT EUROPEANS WOULDN'T BUY THE NEW AMERICAN NAME ANDREW HASKINS AN ELECTRONICS ANALYST AT LONDON'S JAMES CAPEL & CO SAYS WHIRLPOOL CONNOTES QUALITY TO CONSUMERS PHILIPS HAD A STRONG BRAND NAME AND WHIRLPOOL HAS BEEN ABLE TO BUILD ON THAT QUITE CONSIDERABLY MR HASKINS SAYS 9401270004 940127 LEISURE & ARTS BOOKSHELF BUT WILL THE KIDS LIKE IT BY DAVID BROOKS JOHN WAS A BAD BOY AND BEAT A POOR CAT TOM PUT A STONE IN A BLIND MAN'S HAT JAMES WAS THE BOY WHO NEGLECTED HIS PRAYERS THEY'VE ALL GROWN UP UGLY AND NOBODY CARES HERE'S A POEM TO FIRE ANY CHILD'S IMAGINATION IT BUILDS TO A DRAMATIC CLIMAX YET LEAVES SO MUCH FOR THE IMAGINATION TO FILL IN WHAT DID JOHN TOM AND JAMES DO AS UNCAREDFOR UGLY ADULTS AND DID THEY MOVE IN TOGETHER AND FORM A LAW FIRM HOW DID TOM GET THAT STONE IN THE BLIND MAN'S HAT WHAT HAPPENS TO A BLIND MAN WITH A STONE UP THERE THERE ARE DOZENS OF SUCH POEMS STORIES AND DOCUMENTS TO ENGAGE A KID'S MIND IN WILLIAM J BENNETT'S ANTHOLOGY THE BOOK OF VIRTUES A TREASURY OF GREAT MORAL STORIES SIMON & SCHUSTER 831 PAGES 2750 THERE'S A FABULOUS POEM BY HILAIRE BELLOC ABOUT REBECCA THE LITTLE GIRL WHO LIKED TO SLAM DOORS IT HAPPENED THAT A MARBLE BUST/OF ABRAHAM WAS STANDING JUST/ABOVE THE DOOR THIS LITTLE LAMB/HAD CAREFULLY PREPARED TO SLAM AND DOWN IT CAME UPON HER HEAD POOR LITTLE REBECCA WAS DEAD THEN THERE'S GODFREY GORDON GUSTAVUS GORE WHO LEFT DOORS OPEN HIS PARENTS DECIDED THEY WOULD HAVE TO SHIP HIM TO SINGAPORE ANOTHER TALE CONCERNS A FAMILY OF PIONEERS WHO WERE TRAPPED IN THE SIERRA NEVADAS THROUGH A LONG COLD WINTER THEN THERE IS PENELOPE WHO STRUNG ALONG A GROUP OF RANDY BACHELORS UNTIL HER HUSBAND ULYSSES CAME HOME FROM THE WAR AND SHOT THEM WITH ARROWS THERE'S A GREAT PIECE FROM WILLA CATHER ABOUT A GROUP OF BOYS WHO GET TO HANG OUT ALL NIGHT BY A LAKE AND TALK ABOUT LOST GOLD THESE ARE THE SORTS OF STORIES KIDS LIKE TO TELL THEIR FRIENDS ABOUT BUT JUST AS ANY NORMAL REDBLOODED KID IS GETTING ENTHUSIASTIC ABOUT THIS BOOK THE REFRIGERATOR DOOR LOOMS AS FAR AS CAN BE DETERMINED AMERICANS ARE THE ONLY PEOPLE ON EARTH WHO ATTACH PIOUS HOMILIES OR ANN LANDERS COLUMNS TO THEIR REFRIGERATOR DOORS WITH LITTLE MAGNETS THIS REPRESENTS SOMETHING FINE IN THE AMERICAN CHARACTER THE URGE FOR SELFIMPROVEMENT BUT FOR KIDS THE REFRIGERATOR DOOR HOMILIES ARE JUST MORALISTIC TOLLBOOTHS ON THE WAY TO THE ICEBOX IN THIS BOOK THE REFRIGERATOR DOOR IS NEVER FAR AWAY FOR EXAMPLE WHEN GEORGE WASHINGTON'S NAME APPEARS WHEN HE WAS 14 WASHINGTON COPIED 110 RULES FOR CIVILITY OF WHICH 59 ARE EXCERPTED HERE INCLUDING NUMBER 17 BEING TO ADVISE OR REPREHEND ANYONE CONSIDER WHETHER IT OUGHT TO BE IN PUBLIC OR IN PRIVATE PRESENTLY OR AT SOME OTHER TIME ALSO IN WHAT TERMS TO DO IT AND IN REPROVING SHOW NO SIGNS OF CHOLER BUT DO IT WITH SWEETNESS AND MILDNESS WOULDN'T WE BE ASHAMED OF ANY KID WHO COULD READ THAT ENTIRE SENTENCE WITHOUT HAVING THE URGE TO GET UP AND WATCH TV ALAS THERE IS TOO MUCH STUFF HERE THAT WOULD APPEAL TO THE SORT OF KID WHO WOULD EXIST IF KIDS WERE DESIGNED BY ADULTS AND NOT VERY FUN ADULTS EITHER THERE ARE TOO MANY PIECES WITH TITLES SUCH AS YOU MUSTN'T QUIT OR RESPECTING THE FLAG OR JEFFERSON URGES AN EXAMINATION OF FAITH PICTURE YOURSELF AT 13 WITH YOUR DAD RISING FROM THE DINNER TABLE HITCHING UP HIS PANTS AND DECLARING GEE KIDS LET'S DIP INTO A TREASURY OF GREAT MORAL STORIES AND THEN HE PULLS THIS GREAT SLAB OF A BOOK OFF THE SHELF THERE'S UNANIMITY AMONG THE YOUNGER SET OH NO NOT THE VIRTUES BOOK OF COURSE WE ADULTS CAN UNDERSTAND WHY MR BENNETT AND HIS ASSISTANTS STEVEN TIGNER AND JOHN CRIBB CHOSE THIS FORBIDDING TITLE USING THE WORD VIRTUE IS ITSELF A STATEMENT VIRTUE IS A WORD THAT FELL OUT OF COMMON USAGE IN THE EARLY 1970S REPLACED BY THE WORD VALUES VALUES ARE THINGS EACH OF US FORM VIRTUE IS SOMETHING BEYOND US BUILT INTO THE STRUCTURE OF EXISTENCE VIRTUE EXISTS WHETHER ANYONE IS VIRTUOUS OR NOT VALUES CHANGE WITH CIRCUMSTANCE EACH OF US IS SUPPOSED TO HAVE HIS OWN SET THE FACT THAT THIS BOOK ROCKETED TO THE TOP OF THE NEW YORK TIMES BESTSELLER LIST SUGGESTS THAT THERE ARE A LOT OF PEOPLE WHO FEEL THAT VALUES ARE A THIN SUBSTITUTE FOR VIRTUE BUT UNFORTUNATELY SOME PARENTS ARE GOING TO BUY THIS BOOK AS A GOOD DEED AND THEN THEY'RE GOING TO SIT MARY DOWN WITH THE SELECTION PLATO ON RESPONSIBILITY THE PROBLEM WITH THE VALUES REVOLUTION WAS NOT THAT IT TAUGHT THE WRONG THINGS BUT THAT IT COVERED SUCH A MEAGER RANGE OF HUMAN NATURE IN TODAY'S CHILDREN'S BOOKS THE LANGUAGE IS ALMOST INVARIABLY FLAT THE BOOKS CAN TEACH YOU TO RESPECT THE ENVIRONMENT OR TO THINK ABOUT SOCIAL PROBLEMS SUCH AS HOMELESSNESS BUT THEY DON'T INSPIRE FLIGHTS OF FANCY INTO THE WORLD OF MAGIC AND ETERNITY CAN YOU IMAGINE AN ANGEL OR ZEUS OR A FAIRY COMING DOWN TO TEACH VALUES ON THE OTHER HAND ANYBODY WHO GREW UP BEFORE 1970 KNOWS MANY OF THE GREAT STORIES BROUGHT BACK IN THIS BOOK JOHN HENRY BUILDING THE RAILROAD DOLLY MADISON AT THE WHITE HOUSE CASTOR AND POLLUX THE MESSAGE OF THEM ALL IS YOU MAY TURN OUT TO BE A BAD PERSON SO SOMETHING SERIOUS IS AT STAKE WHICH IS IMPOSSIBLE IN VALUES STORIES WHERE EVERYBODY IS ALWAYS GOOD AT HEART NO MATTER HOW THEY BEHAVE IN THE STORIES IN THIS BOOK THE GODS COME DOWN AND TURN PEOPLE INTO TREES AND DIAMONDS COME OUT OF GIRLS' MOUTHS CHILDREN CAN HAVE A GREAT TIME READING THESE TALES SO LONG AS THEY DON'T DISCOVER THAT IT'S SUPPOSED TO BE GOOD FOR THEM MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9401270003 940127 MARKETING & MEDIA BORDEN POSTS LOSS OF 6359 MILLION FOR FOURTH PERIOD BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC REPORTED A LARGE FOURTHQUARTER NET LOSS THAT REFLECTS A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE AND LOSSES IN SEVERAL OF ITS FOOD BUSINESSES BORDEN POSTED A LOSS OF 6359 MILLION OR 450 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 284 MILLION OR 20 CENTS A SHARE THE QUARTER INCLUDES A 632 MILLION CHARGE FOR BUSINESS DIVESTMENTS ORGANIZATIONAL RESTRUCTURING ASSET WRITEDOWNS AND CHANGES IN ACCOUNTING ESTIMATES EXCLUDING THE CHARGE BORDEN'S FOURTHQUARTER LOSS TOTALED 39 MILLION OR 27 CENTS A SHARE SALES FROM CONTINUING OPERATIONS DROPPED 22 TO 147 BILLION AS EXPECTED BORDEN ALSO HALVED ITS QUARTERLY DIVIDEND TO 75 CENTS A SHARE THE DIVIDEND IS PAYABLE MARCH 1 TO SHAREHOLDERS OF RECORD FEB 11 BORDEN'S PERFORMANCE LARGELY FELL WITHIN WALL STREET'S EXPECTATIONS EVERYONE KNEW BAD NEWS WAS COMING SAYS JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC THE UPSIDE IS PROBABLY LIMITED UNTIL THEIR EARNINGS IMPROVE BORDEN'S STOCK ROSE 75 CENTS OR 5 TO 1525 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING EARLIER THIS MONTH BORDEN ANNOUNCED THE CHARGE AND UNVEILED A RESTRUCTURING PLAN THAT CALLS FOR THE SALE OF ITS SAGGING SNACK BUSINESS WHICH IS MADE UP LARGELY OF SMALLER REGIONAL BRANDS SUCH AS WISE POTATO CHIPS BORDEN ALSO IS PUTTING ON THE BLOCK ITS TWO SMALLER SEAFOOD AND JAMS AND JELLIES BUSINESSES THAT TOGETHER WITH SNACKS GENERATED 125 BILLION OR NEARLY 20 OF THE COMPANY'S ANNUAL SALES BORDEN SAID THE FOURTHQUARTER CHARGE INCLUDES 490 MILLION TO COVER A LOSS ON ITS DIVESTITURES 774 MILLION FOR RESTRUCTURING AND 646 MILLION FOR ASSET WRITEDOWNS AND CHANGES IN ACCOUNTING ESTIMATES BORDEN'S FOOD BUSINESSES CONTINUED TO DEMONSTRATE WEAKNESS SOME OF THE AREAS WERE WEAKER THAN I EXPECTED SAID NOMI GHEZ OF GOLDMAN SACHS & CO BORDEN SAID THE NORTH AMERICAN FOODS UNIT POSTED A LOSS IN THE QUARTER VS A PROFIT IN THE COMPARABLE YEARAGO PERIOD WHILE SALES DECLINED 77 TO 732 MILLION GAINS IN PASTA SAUCE AND SEVERAL NICHE GROCERY ITEMS WERE MORE THAN OFFSET BY LOSSES IN DAIRY AND PASTA INTERNATIONAL FOODS REPORTED IMPROVED OPERATING INCOME WHILE PACKAGING AND INDUSTRIAL PRODUCTS HAD MODESTLY LOWER INCOME BORDEN'S PRESIDENT AND CHIEF EXECUTIVE ERVIN R SHAMES REITERATED HIS EARLIER STATEMENT THAT PERSHARE EARNINGS IN 1994 SHOULD BE AT THE UPPER END OF THE 75 CENTS TO 1 RANGE QUARTERLY EARNINGS ARE EXPECTED TO STRENGTHEN AFTER A MARGINALLY PROFITABLE FIRST QUARTER HE SAID AS MOMENTUM AND COST SAVINGS BUILD 9401270002 940127 INTERNATIONAL MERCEDESBENZ OUTLINES PLANS TO RESTRUCTURE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL STUTTGART GERMANY MERCEDESBENZ AG'S CHAIRMAN MAPPED OUT A PLAN FOR A RADICAL REORGANIZATION OF THE COMPANY'S PRODUCTION STRUCTURE AFTER A YEAR IN WHICH ITS PASSENGERCAR AND COMMERCIALVEHICLE DIVISIONS HAD OPERATING LOSSES HELMUT WERNER'S STRATEGY WOULD INCREASE THE PERCENTAGE OF CARS PRODUCED OUTSIDE OF GERMANY AS WELL AS SAVE MONEY BY BUYING MORE PARTS FROM OUTSIDE SOURCES MR WERNER MEANWHILE ENVISIONS CATAPULTING THE COMPANY'S PASSENGERCAR PRODUCTION TO AS MANY AS 900000 UNITS BY 1998 FROM 482000 LAST YEAR THROUGH AGGRESSIVE MOVES INTO NEW GEOGRAPHICAL MARKETS AND NEW MARKET NICHES SUCH AS SPORTUTILITY VEHICLES MINIVANS AND A SUBCOMPACT CITY CAR UNTIL NOW WE HAVE BEEN TOO PASSIVE DEALING WITH STRUCTURAL CHANGES MR WERNER SAID AT A NEWS CONFERENCE MERCEDES IS THE AUTO UNIT OF GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG INDUSTRY ANALYSTS EXPRESSED MODERATE ENTHUSIASM FOR MR WERNER'S STRATEGY BUT SAID THEY'LL WAIT TO SEE HOW WELL MANAGEMENT IMPLEMENTS THE PROGRAM THEY'RE SAYING MANY OF THE RIGHT THINGS AND THEY'RE PROBABLY DOING MOST OF THE RIGHT THINGS BUT THEY'VE FALLEN SHORT ON IMPLEMENTATION BEFORE SAID EDMOND CHEW EUROPEAN AUTOINDUSTRY ANALYST AT NOMURA RESEARCH INSTITUTE OTHER ANALYSTS WORRIED THAT MR WERNER MIGHT BE AIMING AT TOO BIG AN EXPANSION TOO QUICKLY WHILE NEGLECTING THE HEART OF THE COMPANY'S FRANCHISE TRADITIONAL LUXURY CARS IN FAVOR OF NEW MARKET NICHES MERCEDESBENZ'S COMMERCIALVEHICLES DIVISION WILL REMAIN SOLIDLY IN THE RED IN 1994 MR WERNER SAID THE CAR DIVISION HOWEVER MAY MAKE IT BACK INTO THE BLACK THIS YEAR HE SAID A RECOVERY ON THE CAR SIDE OF THE BUSINESS WOULD BE PRIMARILY DRIVEN BY SALES OF THE LOWERPRICED CCLASS THE BABYBENZ WHICH HAS SOLD 120000 UNITS SINCE BEING INTRODUCED IN THE SECOND HALF OF LAST YEAR IN 1994 MR WERNER PREDICTED THAT THE CCLASS AS WELL AS THE RETOOLED ECLASS WOULD HELP PUSH CAR SALES UP TO 570000 UNITS FROM 508000 UNITS LAST YEAR AND THAT SALES FOR THE COMPANY WOULD TOTAL 68 BILLION MARKS 3885 BILLION MR WERNER REFUSED TO GIVE ANY INDICATION OF THE MAGNITUDE OF OPERATING LOSSES FOR 1993 BUT SAID MERCEDES WOULD HAVE A PROFIT FOR 1993 WITHOUT GIVING DETAILS IN 1993 SALES DROPPED 29 TO 646 BILLION MARKS FROM 665 BILLION MARKS IN 1992 BY 1998 MERCEDES AIMS TO RAISE THE RATIO OF FOREIGNPRODUCED OR ASSEMBLED CARS TO 10 FROM THE CURRENT 2 ONLY PARTLY MOTIVATED BY HIGH COSTS OF PRODUCTION IN GERMANY THIS MOVE IS PRIMARILY ONE TO WIN MERCEDES A BETTER POSITION IN GLOBAL MARKETS MR WERNER SAID MR WERNER CITED THE NEED TO BALANCE OUT THE RISKS OF MARKET DOWNTURNS CURRENCY SWINGS AND THE NEED TO HAVE A PRESENCE IN EACH OF THE WORLD'S MAJOR TRADING BLOCS ANALYSTS WONDER IF MERCEDES WILL RUN INTO PROBLEMS WITH ITS PLAN TO OUTSOURCE MORE OF ITS CAR PARTS A QUICK INCREASE IN OUTSOURCING WOULD MEAN A LOT OF SURPLUS MERCEDES WORKERS AND THE COMPANY IS ALREADY UNDER POLITICAL PRESSURE TO STEM LAYOFFS THE DECISION TO KEEP PRODUCTION OF THE NEW ACLASS IN GERMANY FOR INSTANCE REPRESENTED A CONCESSION TO LABOR PRESSURE AND WAS A KEY FACTOR IN LIMITING THE NUMBER OF JOB LOSSES TO 8000 RATHER THAN 13300 AS ORIGINALLY SLATED FOR 1994 STILL THE UPTURN IN THE US MARKET WHERE MERCEDES HOPES TO BOOST SALES TO 70000 IN 1994 FROM 61000 IN 1993 IS A GOOD HARBINGER AND THE APPRECIATION OF THE YEN GIVES MERCEDES A FURTHER COMPETITIVE ADVANTAGE BY MAKING ITS CHIEF COMPETITION IN THAT MARKET THE LEXUS DIVISION OF TOYOTA MOTOR CORP RELATIVELY MORE EXPENSIVE 9401270001 940127 HOUSE PANEL FINDS CREDIT UNIONS HAD DEPOSITS IN BANESTO BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BANKING COMMITTEE SAID THAT THE US CENTRAL CREDIT UNION HAD DEPOSITED 255 MILLION IN THE FAILED BANCO ESPANOL DE CREDITO AND ASKED THE FEDERAL RESERVE BOARD WHETHER OTHER AMERICAN FINANCIAL INSTITUTIONS WERE HURT BY THE SPANISH BANK FAILURE THE DEPOSITS OF US CENTRAL WHICH HANDLES INVESTMENT AND SERVICES FOR AMERICA'S 13000 CREDIT UNIONS WEREN'T INSURED HOWEVER THE CENTRAL BANK OF SPAIN SAID IN DECEMBER THAT IT INTENDS TO GUARANTEE ALL FOREIGN AND DOMESTIC DEPOSITS IN BANCO ESPANOL KNOWN AS BANESTO THE BANK WAS SEIZED BY THE SPANISH GOVERNMENT A MONTH AGO JP MORGAN & CO THE NEW YORK BANKING COMPANY HAD MADE A MAJOR INVESTMENT IN BANESTO WHICH IT STANDS TO LOSE THE BANKING PANEL'S DISCOVERY THAT US CENTRAL WHICH IS BASED IN OVERLAND PARK KAN ALSO HAD BEEN INVOLVED WITH BANESTO HAS SPURRED THE PANEL TO FIND OUT IF OTHER BANKS HAD DEPOSITS THERE THE HOUSE PANEL HAS ASKED THE FED TO PROVIDE IT WITH INFORMATION ON HOW IT SUPERVISES THE INVESTMENTS BY MORGAN AS WELL AS REPORTS ON OTHER BANKS THAT MAY HAVE MADE INVESTMENTS OR DEPOSITS IN BANESTO IN DECEMBER SPAIN'S CENTRAL BANK FIRED THE CHAIRMAN AND THE ENTIRE BOARD OF BANESTO SPAIN'S FOURTHLARGEST COMMERCIAL BANK IN AN ATTEMPT TO STAVE OFF A THREATENED RUN ON DEPOSITS THE CENTRAL BANK SAID IT WAS ACTING UNDER PROVISIONS OF SPANISH BANKING LAW IN LIGHT OF JITTERS STEMMING FROM SEVERE FINANCIAL PRESSURES ON BANESTO THE CENTRAL BANK'S MOVE THOUGH TALKED ABOUT FOR MONTHS AS A POSSIBILITY WAS A BOMBSHELL IN MADRID'S FINANCIAL MARKETS 9401260191 940126 POLITICS & POLICY PAST PERFORMANCE BECOMES A FACTOR IN US CONTRACTS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRIVATE CONTRACTORS SEEKING BUSINESS WITH THE FEDERAL GOVERNMENT UNDER A PILOT PROGRAM TO BE UNVEILED TODAY WILL BE REQUIRED TO SHOW HOW WELL THEY HAVE PERFORMED ON THEIR PREVIOUS FEDERAL CONTRACTS REPRESENTATIVES OF 19 FEDERAL AGENCIES INCLUDING THE TREASURY AGRICULTURE ENERGY TRANSPORTATION AND JUSTICE DEPARTMENTS THE AIR FORCE THE ENVIRONMENTAL PROTECTION AGENCY AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WILL TODAY SIGN A PLEDGE TO MAKE PAST PERFORMANCE A MAJOR CRITERION FOR EVALUATING A PRIVATE COMPANY'S FITNESS FOR GOVERNMENT WORK THE PLEDGE FOLLOWS THROUGH ON A CALL FOR GREATER FLEXIBILITY IN FEDERAL PROCUREMENT WHICH WAS INCLUDED IN VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT REPORT LAST SUMMER THE PROGRAM WILL APPLY ONLY TO CERTAIN CONTRACTS REPRESENTING ROUGHLY 2 BILLION IN FEDERAL SPENDING UNDERTAKEN BY THE PARTICIPATING AGENCIES ALTHOUGH SOME FEDERAL AGENCIES MOST NOTABLY THE DEFENSE DEPARTMENT HAVE USED VARIATIONS ON THE PASTPERFORMANCE STANDARD BEFORE FEDERAL AGENCIES GENERALLY HAVE BEEN LOATH TO CONSIDER PAST PERFORMANCE IN AWARDING CONTRACTS FEDERAL OFFICIALS AVOID THE ISSUE BECAUSE IT IS THOUGHT TO BE TOO SUBJECTIVE A CRITERION COMPARED WITH MOREOBJECTIVE CONSIDERATIONS SUCH AS WHICH COMPANY IS THE LOWEST BIDDER OR WHICH COMPANY'S PROPOSAL MEETS CERTAIN TECHNICAL SPECIFICATIONS THE AGENCIES THAT SIGN TODAY'S AGREEMENT WILL MEET IN COMING WEEKS TO ESTABLISH GUIDELINES ON HOW TO IMPLEMENT THE PASTPERFORMANCE STANDARD AMONG THE FACTORS THAT THE FEDERAL GOVERNMENT UNDER THE NEW PROCEDURE WOULD CONSIDER IN GRANTING CONTRACTS ARE WHETHER A COMPANY HAS A RECORD OF DELIVERING PRODUCTS OR SERVICES ON TIME AND HOW FREQUENTLY THE COMPANY HAS SOUGHT PRICE ADJUSTMENTS ON FEDERAL CONTRACTS BECAUSE OF UNFORESEEN CIRCUMSTANCES 9401260190 940126 TEXAS JOURNAL THE REAL TEST A MCSWOOPES SODA AND FRIES BY TARA PARKERPOPE MOVE OVER MICHAEL JORDAN FORMER TEXAS TECH UNIVERSITY BASKETBALL STAR SHERYL SWOOPES WHO WOWED TEXAS FANS WITH HER SPEED AND SHOOTING TOUCH HAS LANDED ON THE PAGES OF VANITY FAIR MAGAZINE IN A BIGTIME ENDORSEMENT DEAL FOR ATHLETICSHOE GIANT NIKE INC AND IN SIGNING THE CONTRACT MS SWOOPES NAMED LAST WEEK THE ASSOCIATED PRESS'S FEMALE ATHLETE OF 1993 HAS REACHED ANOTHER MILESTONE SHE IS THE FIRST FEMALE BASKETBALL PLAYER EVER TO BE FEATURED IN A NIKE AD CAMPAIGNNO SMALL ACHIEVEMENT IN A SPORT THAT USUALLY ABANDONS WOMEN PLAYERS AFTER COLLEGE THOUGH NIKE OFFICIALS WON'T DISCLOSE DETAILS OF THE CONTRACT A REPRESENTATIVE FOR MS SWOOPES SAYS IT EXTENDS THROUGH THE 1996 SUMMER OLYMPICS NIKE OFFICIALS SAY MS SWOOPES IS PART OF AN AD CAMPAIGN AIMED AT WOMEN IN A TWOPAGE AD IN THE FEBRUARY ISSUE OF VANITY FAIR SHE TELLS READERS ABOUT WORKING OUT TWICE A DAY PLAYING BASKETBALL WITH HER BROTHERS AND BECOMING A BLACK FEMALE ROLE MODEL FOR YOUNGER KIDS NOW THE 6FOOTTALL 22YEAROLD WHO LED HER TEAM TO THE NATIONAL TITLE LAST YEAR IS FINISHING THE LAST FEW HOURS OF A SPORTS SCIENCE DEGREE AT TEXAS TECH SHE STILL WORKS OUT WITH THE SCHOOL'S BASKETBALL TEAM TO STAY IN SHAPE FOR 1996 AND SHE IS AN ANNOUNCER ON RADIO BROADCASTS OF THE TEAM'S GAMES THOUGH SHE STAYS BUSY MS SWOOPES IS FRUSTRATED BY THE LIMITED POSTGRADUATE OPPORTUNITIES IN WOMEN'S BASKETBALL SHE PLAYED FOR THREE MONTHS LAST YEAR FOR AN ITALIAN WOMEN'S TEAM BUT SAYS SHE LEFT AFTER IT FAILED TO MAKE GOOD ON ALL ITS PROMISES THERE'S NOTHING TO DO UNLESS YOU GO OVERSEAS AND PLAY MS SWOOPES LAMENTS I LOVE TO PLAY I JUST DON'T WANT TO HAVE TO DO IT OVERSEAS 9401260189 940126 ADMINISTRATION DEFERS ITS PHONE CABLE PROPOSAL OFFICIALS WILL ALLOW 2 BILLS IN HOUSE TO PROCEED FILE THEIR PLAN LATER BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION DEFERRING PLANS FOR ITS OWN TELECOMMUNICATIONS REFORM BILL THIS WEEK WILL OFFER ONLY LIGHT CRITICISM OF TWO MEASURES IN THE HOUSE GOVERNMENT OFFICIALS SAID ADMINISTRATION OFFICIALS HAD SAID THEY WOULD FILE LEGISLATION EARLY THIS YEAR TO REMOVE SOME BARRIERS TO COMPETITION AMONG CABLE TELEPHONE AND LONGDISTANCE COMPANIES BUT NOW SAY THEY WILL HOLD OFF UNTIL THE SENATE TAKES UP LEGISLATION SEVERAL MONTHS FROM NOW THE STRATEGY IN ADDITION TO GIVING THE ADMINISTRATION MORE TIME TO WORK OUT DETAILS REFLECTS A FEAR OF SLOWING THE HOUSE BILLS EVEN THOUGH SOME ADMINISTRATION OFFICIALS THINK THE BILLS NEED TO INCLUDE STRONGER CONSUMER PROTECTIONS WE HAVE SOME THINGS WE'D LIKE TO ADDRESS AT THE MARGINS ONE ADMINISTRATION OFFICIAL SAID BUT THE REALITY IS WE DON'T WANT TO STAND IN THE WAY OF A FREIGHT TRAIN HOUSE LEADERS HAVE SET AGGRESSIVE TIMETABLES FOR THE TELECOMMUNICATIONS BILLS SO THEY CAN BEGIN CONSIDERING HEALTHCARE REFORM AND OTHER INITIATIVES IN MARCH REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND JACK BROOKS D TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE HAVE WARNED THE ADMINISTRATION NOT TO DERAIL THEIR COMPROMISE BILL WHICH THEY FILED IN DECEMBER AFTER NEARLY A YEAR OF DELICATE NEGOTIATIONS LARRY IRVING ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION AT THE COMMERCE DEPARTMENT AND ANNE BINGAMAN THE JUSTICE DEPARTMENT'S TOP ANTITRUST OFFICIAL ARE EXPECTED TO TESTIFY TODAY ON THE BROOKSDINGELL BILL WHICH ALLOWS BABY BELLS INTO THE LONGDISTANCE MANUFACTURING AND INFORMATIONSERVICES BUSINESSES IF THEY GET APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION AND THE JUSTICE DEPARTMENT MR IRVING AND FCC CHAIRMAN REED HUNDT ARE SCHEDULED TO TESTIFY TOMORROW ON A BILL SPONSORED BY REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE THAT WOULD GIVE CABLE AND LOCALTELEPHONE COMPANIES GREATER FREEDOM TO COMPETE IN EACH OTHER'S BUSINESSES ADMINISTRATION OFFICIALS SAY THEY HAVE GREATER DIFFERENCES WITH THE MARKEY BILL WHICH IS COSPONSORED BY REPS JACK FIELDS R TEXAS AND RICK BOUCHER D VA IN PARTICULAR THE ADMINISTRATION WANTS A MORE SWEEPING PROHIBITION AGAINST TELEPHONE COMPANIES BUYING CABLE SYSTEMS IN THEIR SERVICE AREAS THE OFFICIALS SAID THE MARKEYFIELDS BILL ALLOWS A TELEPHONE COMPANY TO BUY A CABLE SYSTEM THAT SERVES FEWER THAN 10 OF THE HOUSEHOLDS IN ITS SERVICE AREA THE MARKEYFIELDS BILL ALSO ALLOWS THE FCC TO GRANT A WAIVER IF THE CABLE OPERATOR WOULD NOT BE ECONOMICALLY VIABLE ON ITS OWN ALSO THE ADMINISTRATION IS SEEKING STRONGER PROVISIONS TO ENSURE THAT TELEPHONE COMPANIES GIVE COMPETITORS ACCESS TO THE LOCAL PHONE NETWORK ONE OFFICIAL SAID BUT HE SAID THE ADMINISTRATION AGREES WITH THE MARKEYFIELDS PROPOSAL THAT TELEPHONE COMPANIES SHOULD BE ALLOWED TO PROVIDE VIDEO SERVICE IMMEDIATELY RATHER THAN WAITING AS LONG AS SEVEN YEARS AS THE CABLE INDUSTRY HAS REQUESTED THE ADMINISTRATION AND CONGRESS ARE UNDER PRESSURE TO REFORM TELECOMMUNICATIONS LAWS THIS YEAR BECAUSE THE COURTS HAVE ALREADY STARTED STRIKING DOWN SOME BARRIERS AND RECENT CORPORATE COMBINATIONS THREATEN TO DO THE SAME JOHN MALONE CHAIRMAN OF CABLETV GIANT TELECOMMUNICATIONS INC WHICH IS SEEKING APPROVAL TO BE ACQUIRED BY BELL ATLANTIC CORP GAVE A BLUNT VIEW OF THE CHANGES DURING A SPEECH HERE YESTERDAY HE SAID CUSTOMERS WILL EVENTUALLY CHOOSE FROM COMPETING OLIGOPOLIES THAT WILL GIVE THEM LOWER PRICES IF THEY ORDER CABLE TELEPHONE LONGDISTANCE AND TEXTRETRIEVAL SERVICES FROM A SINGLE SOURCE HE SAID SMALL COMPANIES INCLUDING TCI WOULD BE LEFT BEHIND IF THEY DON'T FORGE ALLIANCES THE ONLY OTHER APPROACH IS FOR THE GOVERNMENT TO BALKANIZE IT TO THE DEGREE THAT WE DON'T HAVE AN INDUSTRY MR MALONE SAID IN THE SPEECH SPONSORED BY THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES BUT THE GOVERNMENT DISAGREED OUR WHOLE GOAL IS TO INCREASE THE NUMBER OF PLAYERS IN EVERY FIELD AND TO MAKE COMPETITION FAIR ONE OFFICIAL SAID OLIGOPOLY IS NOT COMPETITION ANOTHER ADDED 9401260188 940126 CORPORATE FOCUS KANSAS CITY SOUTHERN'S GROWTH HAS AN UNLIKELY SPUR RAIL CONCERN'S FINANCIALSERVICES GROUP PROFITS FROM MUTUALFUND BOOM BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO THOUGH BEST KNOWN FOR ITS RAILROAD KANSAS CITY SOUTHERN INDUSTRIES INC IS GETTING A LIFT THESE DAYS FROM AN UNUSUAL SOURCE THE EXPLOSIVE GROWTH OF MUTUAL FUNDS ITS RAILWAY OPERATION POSTED 25 NINEMONTH GROWTH IN PRETAX PROFIT BUT THE BIGGEST FACTOR IN KCSI'S EARNINGS HAS BEEN THE EXPANSION OF ITS FINANCIALSERVICES OPERATIONS KCSI HOLDS AN 81 STAKE IN FASTGROWING MUTUALFUND MANAGER JANUS CAPITAL CORP AND ALSO OWNS A MAJOR PROVIDER OF TRANSACTIONPROCESSING SERVICES TO THE FUND INDUSTRY THE BOOMING FUND INDUSTRY HAS SWOLLEN PROFIT AT THOSE UNITS THOUGH SOME OBSERVERS HAVE SUGGESTED RECENTLY THAT JANUS'S LONGTORRID MOMENTUM MAY BE SLOWING SLIGHTLY NEVERTHELESS ASSETS UNDER MANAGEMENT AT JANUS HAVE JUMPED MORE THAN 12FOLD IN THE PAST FOUR YEARS AND PROFIT FOR 1993 IS EXPECTED TO DOUBLE FOR THE SECOND YEAR IN A ROW INDEED FOR THE YEAR JUST ENDED THE FINANCIAL GROUP'S PROFIT IS EXPECTED TO EXCEED THE RAILWAY'S AS RECENTLY AS 1990 THE TRANSPORT SEGMENT'S OPERATING PROFIT WAS NEARLY THREE TIMES THE FINANCIAL GROUP'S THE COUPLING OF A DIESELPOWERED HAULER OF CHICKEN FEED AND COAL WITH A HOTSHOT FINANCIAL PLAYER MIGHT SEEM INCONGRUOUS BUT IT APPEARS TO WORK IT'S A GREAT FIT SAYS MERRILL LYNCH ANALYST DOUGLAS ROCKEL WHO FINDS THAT THE RAILROAD'S CAPITALINTENSIVE OPERATIONS HELP HOLD DOWN THE TAX LIABILITY OF THE FINANCIAL SIDE AND GRAEME ANNE LIDGERWOOD A RAILROAD ANALYST AT CS FIRST BOSTON CORP AND AN EARLY OBSERVER OF THE SHIFT IN THE COMPANY'S EARNINGS STRUCTURE REMAINS VERY POSITIVE ABOUT ITS PROSPECTS THE COMBINATION GIVES THEM EARNINGS DIVERSIFICATION SHE SAYS AND THE HIGHER MULTIPLE ITS STOCK IS NOW ACCORDED COULD EVENTUALLY GIVE THEM A LEG UP IN TERMS OF ANY POSSIBLE ACQUISITIONS MADE FOR STOCK FOR MORE THAN A YEAR KCSI'S SHARES HAVE CLIMBED AS INVESTORS BECAME CONVINCED THAT ITS SHARES SHOULD NO LONGER BE VALUED AT THE LOWER MULTIPLES THAT RAILROAD STOCKS COMMAND THE COMPANY HAS A HISTORICAL FAMILIARITY AND COMFORT LEVEL WITH THESE TWO INDUSTRIES SAYS LANDON H ROWLAND THE 56YEAROLD HARVARD LAW SCHOOL GRADUATE WHO AFTER SERVING AS OUTSIDE COUNSEL JOINED THE COMPANY AS ASSISTANT TO THE PRESIDENT IN 1983 HE'S NOW PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE INTO FINANCIAL SERVICES IS THE FORTUITOUS OUTCOME AND INDEED THE ONLY ELEMENT REMAINING OF AN EARLIER DIVERSIFICATION EFFORT UNDER A BACKTOFUNDAMENTALS DRIVE LAUNCHED BY MR ROWLAND THE COMPANY HAS SHED ASSORTED NONTRANSPORT OPERATIONS COLLECTED BY EARLIER MANAGEMENT INCLUDING A PHARMACEUTICAL OPERATION A TELECOMMUNICATIONS CONCERN AND A HOST OF SMALLER INTERESTS IN BUSINESSES SUCH AS VETERINARY PRODUCTS THE COMPANY'S INITIAL FORAY INTO THE FINANCIAL FIELD CAME IN THE EARLY 1960S WITH ITS ACQUISITION OF A SMALL MUTUALFUND MANAGER AS THAT BUSINESS GREW OFFICIALS CAME TO REALIZE THE RECORDKEEPING BURDEN OF SUCH A BUSINESS THE RAILROAD'S DATAPROCESSING COMPUTER TEAM WAS PUT TO WORK DEVELOPING A SYSTEM TO SERVICE THE MUTUALFUND ACCOUNTS OUT OF THAT PROJECT CAME DST SYSTEMS INC WHICH KCSI CALLS THE NATION'S BIGGEST PROVIDER OF COMPUTERIZED SHAREHOLDER SERVICING FOR MUTUAL FUNDS MUTUAL FUNDS KCSI'S CHIEF FINANCIAL OFFICER JOSEPH MONELLO SAYS DST INCREASINGLY VIEWS ITSELF AS SERVICING THE FINANCIALSERVICES INDUSTRY INCLUDING BANKS AND INSURERS AND NOT SIMPLY THE FUND INDUSTRY FOR INSTANCE BY MONTH'S END DST PLANS TO HAVE INCREASED ITS STAKE TO NEARLY 27 IN CONTINUUM CO AN AUSTIN TEXAS COMPUTERSERVICES CONCERN THAT SPECIALIZES IN THE INSURANCE INDUSTRY THE FINANCIAL SEGMENT'S EARNINGS WERE ALSO BOOSTED BY JANUS THE HIGHPROFILE DENVERBASED MUTUALFUND CONCERN KCSI BOUGHT ITS CONTROLLING STAKE FROM FOUNDER THOMAS BAILEY IN 1984 WHEN JANUS HAD ABOUT 400 MILLION IN ASSETS UNDER MANAGEMENT ASSETS STOOD AT 17 BILLION AT THE END OF 1989 AND SINCE HAVE BALLOONED TO ABOUT 222 BILLION KCSI'S 18 STAKE IN BERGER ASSOCIATES A MANAGER OF GROWTHORIENTED FUNDS WAS ACQUIRED IN 1992 MEANWHILE THE COMPANY'S RAILWAY ISN'T STANDING STILL ONE OF THE SMALLEST OF THE NATION'S MAJOR RAILROADS KANSAS CITY SOUTHERN LUGS COAL FROM THE WEST TO UTILITIES IN SOUTHCENTRAL US AND ON THE RETURN TRIP HAULS CHEMICALS AND PETROLEUM PRODUCTS FROM THE BIG PLANTS OF LOUISIANA AND TEXAS IT CARRIES MIDWESTERN GRAIN TO POULTRY FARMERS IN ARKANSAS AND PICKS UP PLYWOOD FROM MILLS IN THE SOUTH UNLIKE SOME OF ITS COMPETITORS THE RAIL UNIT HAS SEEN OPERATING PROFIT HOLD UP WELL DESPITE FLAT VOLUME IN LAST YEAR'S FIRST NINE MONTHS PRETAX EARNINGS AT THE RAILROAD CLIMBED 25 TO 606 MILLION FROM 484 MILLION IN THE YEAREARLIER PERIOD THE PERFORMANCE HAS BEEN ATTRIBUTED IN LARGE PART TO MR ROWLAND'S EFFORTS TO TRIM COSTS AND MAKE THE RAILROAD MORE CUSTOMERFRIENDLY IN ADDITION THE COMPANY HAS BEEN SPENDING HEAVILY SINCE 1986 TO IMPROVE ITS RAIL FACILITIES A 500 MILLION OVERHAUL OF KANSAS CITY SOUTHERN'S ROUTES IS SCHEDULED TO BE COMPLETED IN EARLY 1995 WHILE THE COMPANY DECLINES TO COMMENT MANY ANALYSTS THINK THE COMING DROPOFF IN CAPITAL OUTLAYS WILL ALLOW AN ACCELERATION OF ITS ACQUISITION STRATEGY IN ADDITION TO A STRING OF SMALLER PURCHASES AIMED AT FINETUNING ITS ROUTE STRUCTURE KANSAS CITY SOUTHERN CLOSED IN MID1993 A 219 MILLION ACQUISITION OF MIDSOUTH CORP A REGIONAL RAIL COMPANY HEADQUARTERED IN JACKSON MISS THE RELATIVELY STIFF PURCHASE PRICE RAISED SOME EYEBROWS AMONG ANALYSTS BUT THEY POINT OUT THAT THE ADDITIONAL 1200 MILES OF TRACK PERMITS THE RAILROAD TO ESTABLISH A ROUTE FROM DALLAS EAST TO BIRMINGHAM ALA AND MERIDIAN MISS THAT LINE IS THE COMPANY'S TICKET TO ENTER THE EASTWEST LAND BRIDGE IN WHICH HAULING INTERMODAL CONTAINERS AND TRUCK TRAILERS IS THE INDUSTRY'S FASTEST GROWING SERVICE THE NEW ROUTE THE COMPANY SAYS CUTS A HALF DAY TO A FULL DAY FROM THE TRANSIT TIME FOR TRAFFIC MOVING FROM THE SOUTHWEST TO THE SOUTHEAST PARTICULARLY ATLANTA AT THE SAME TIME THE COMPANY THINKS ITS NORTHSOUTH ROUTE AND IN PARTICULAR ITS HARBOR FACILITY IN PORT ARTHUR TEXAS WILL HELP IT TO GAIN SOME OF THE INCREASING VOLUME EXPECTED TO RESULT FROM THE NORTH AMERICAN FREE TRADE AGREEMENT AMONG OTHER THINGS THE RAILROAD HOPES THE PORT ARTHUR FACILITY CAN BE USED AS A SHIPPING POINT FOR COAL TO A NUMBER OF POWER PLANTS THAT ARE PLANNED ON MEXICO'S SEABOARD 9401260187 940126 WHO'S NEWS BIRD DISMISSES HAUFLER AS CEO AND NAMES VECCHIOLLA TO THE POST DEDHAM MASS BIRD CORP EXPERIENCING MOUNTING LOSSES DISMISSED GEORGE F HAUFLER AS ITS CHIEF EXECUTIVE OFFICER AFTER 12 YEARS ON THE JOB THE BUILDINGMATERIALS AND ENVIRONMENTALSERVICES COMPANY SAID ITS PRESIDENT JOSEPH D VECCHIOLLA WHO JOINED BIRD LAST MAY WILL SUCCEED MR HAUFLER AS ITS CEO THE ACTION WAS PREDICATED ON THE FINANCIAL PERFORMANCE OF THE COMPANY SAID SPOKESMAN CHARLES FLETCHER BIRD ANNOUNCED JAN 17 THAT IT EXPECTS TO REPORT A FOURTHQUARTER LOSS THAT IS SIGNIFICANTLY LARGER THAN PREVIOUSLY ANTICIPATED FOR THE FOURTH QUARTER OF 1992 BIRD POSTED A NET LOSS OF 541000 OR 23 CENTS A SHARE THE COMPANY ALSO SAID IN JANUARY THAT IT WAS PLANNING TO WITHDRAW FROM ITS ONSITE ENVIRONMENTALREMEDIATION BUSINESS IN THE FIRST HALF OF 1994 BECAUSE OF DISAPPOINTING RESULTS MR FLETCHER SAID BIRD IS CONTINUING ITS NEGOTIATIONS WITH BANKS OVER ITS PREVIOUSLY ANNOUNCED TECHNICAL DEFAULT ON A 50 MILLION LOAN AGREEMENT THE COMPANY HAS SAID IT WILL NOT DECLARE ANY DIVIDENDS UNTIL IT NEGOTIATES AN AMENDMENT TO THE LOAN THE COMPANY SAID MR VECCHIOLLA HAS ALREADY BEGUN TO PUT IN PLACE A PLAN OF ACTION WHICH EMPHASIZES STABILIZING BANKING RELATIONS ELIMINATING ENVIRONMENTAL BUSINESS UNIT LOSSES BUILDING A STRONG BALANCED SHEET AND FOCUSING FUTURE GROWTH INITIATIVES ON BIRD'S PROFITABLE CORE HOUSINGRELATED OPERATIONS MR VECCHIOLLA 38 YEARS OLD ORIGINALLY JOINED BIRD AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN NOVEMBER HE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND HE WAS ELECTED TO THE BOARD IN DECEMBER HE PREVIOUSLY SERVED AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HORIZON CELLULAR TELEPHONE CO BIRD SAID MR HAUFLER 62 WILL CONTINUE AS A DIRECTOR MR HAUFLER IS ON LEAVE OF ABSENCE AS CHAIRMAN BECAUSE OF MEDICAL PROBLEMS GUY W FISKE THE BOARD'S VICE CHAIRMAN WILL CONTINUE AS CHAIRMAN OF THE EXECUTIVE COMMITTEE AND WILL HAVE THE FULL RESPONSIBILITY AND AUTHORITY OF CHAIRMAN OF THE BOARD MR HAUFLER WHO RECENTLY WAS DIAGNOSED WITH LUNG CANCER SAID WITH MY CURRENT HEALTH CONDITION I THINK WHAT IS BEING DONE IS APPROPRIATE 9401260186 940126 INNOVATIVE GAMING CORP PLYMOUTH MINN INNOVATIVE GAMING CORP OF AMERICA SAID ITS SUPPLIERS GRANTED IT WORLDWIDE MANUFACTURING AND DISTRIBUTION RIGHTS FOR ITS LIVE VIDEO CRAPS AND LIVE VIDEO BLACKJACK MACHINE GAMES FINANCIAL TERMS WEREN'T DISCLOSED 9401260185 940126 PEPPERAND SALT HAS FREQUENTLY BEEN NOTED WE ARE SORRY WE ELECTED SOCIAL CLUB BUDDY BUILDERS 9401260184 940126 WHO'S NEWS ARGUS PHARMACEUTICALS INC ARGUS PHARMACEUTICALS INC HOUSTON GEOFFREY COX SENIOR VICE PRESIDENT OF GENZYME CORP WAS NAMED A DIRECTOR OF THIS PHARMACEUTICAL CONCERN MR COX 50 YEARS OLD INCREASES THE SIZE OF THE BOARD TO EIGHT MEMBERS 9401260183 940126 TEXAS JOURNAL ROAD TO STARTUP IS PAVED WITH POTHOLES BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON IT HAS TAKEN THREE YEARS BUT RICHARD JOHNSON CAN FINALLY SAY HE'S GLAD HE GOT THAT TRAFFIC TICKET INSPIRED BY A DULL DEFENSIVEDRIVING COURSE HE TOOK AFTER GETTING NABBED FOR SPEEDING BACK IN SEPTEMBER 1990 THE APPAREL EXECUTIVE THEN 31 YEARS OLD WAS DETERMINED TO COME UP WITH A BETTER ALTERNATIVE THE RESULT THREE WEEKS AGO HE AND TWO FRIENDS LAUNCHED US INTERACTIVE INC A BUSINESS THAT USES STATEOFTHEART TECHNOLOGY TO ALLOW TRAFFIC OFFENDERS TO COMPLETE CLASSWORK AT HOME BUT REACHING THIS MILESTONE HAS BEEN A LOT TOUGHER THAN ANY OF THEM COULD HAVE IMAGINED NOT ONLY DID THEY FACE A DEBILITATING LACK OF CAPITAL BUT THEY ALSO HAD TO WAGE A BRUISING LOBBYING BATTLE IN AUSTIN AGAINST ENTRENCHED DRIVERSAFETY BUSINESSES IN ORDER TO GET STATE APPROVAL IT'S EASY TO SEE WHY THE EXISTING OPERATORS KICKED UP A FUSS CAPITALIZING ON A STATE LAW THAT ALLOWS TRAFFIC VIOLATORS TO GET TICKETS DISMISSED OR AVOID INCREASES IN INSURANCE PREMIUMS BY ATTENDING DEFENSIVEDRIVING SCHOOL HUNDREDS OF SMALL BUSINESSES HAVE SPRUNG UP AROUND THE STATE CHARGING 15 TO 35 PER STUDENT AFTER HIS OWN BRUSH WITH THE SYSTEM MR JOHNSON AT THE TIME A VICE PRESIDENT OF A HOUSTON FITNESSAPPAREL MANUFACTURER DECIDED TO TRY TO FUNNEL SOME OF THAT REVENUE HIS WAY HE AND A FRIEND SCOTT OWENS AN EXECUTIVE AT A LOCAL VENTURECAPITAL FIRM CAME UP WITH AN IDEA FOR A SIXHOUR VIDEO COURSE THAT WOULD ALLOW CUSTOMERS TO TAKE THE VIDEO HOME FOR THREE DAYS AND WATCH AT THEIR CONVENIENCE TO VERIFY PARTICIPATION USERS WOULD HAVE TO LOG ON TO A COMPUTER AT HOME SIGNAL WHEN THEY WERE STARTING TO WATCH THE VIDEO AND THEN ANSWER QUESTIONS BY COMPUTER AT SPECIFIED INTERVALS THE WOULDBE ENTREPRENEURS WERE SO ENAMORED OF THEIR IDEA THAT THEY BOTH QUIT THEIR 30000AYEAR JOBS THEN CAME THE HARD PART ONE OF THE FIRST STEPS AN ORAL PRESENTATION TO THE TEXAS EDUCATION AGENCY WHICH CERTIFIES DEFENSIVEDRIVING COURSES UNFORTUNATELY AGENCY OFFICIALS ALSO REQUESTED A WRITTEN PROPOSAL SHORT OF CASH MR JOHNSON HADN'T PAID HIS UTILITY BILLS SO THEY HAD TO STRING AN EXTENSION CORD FROM HIS NEIGHBOR'S HOUSE TO TURN ON HIS COMPUTER A FINANCIAL REPRIEVE CAME IN JANUARY 1991 WHEN THE FATHER OF A CHILDHOOD FRIEND INVESTED 25000 MOST OF THE MONEY WENT FOR FOOD THOUGH MESSRS JOHNSON AND OWENS ALSO BEGAN BUYING THE RIGHTS TO FILM CLIPS THEY ALSO HIRED A TECHNOLOGY COMPANY TO DEVELOP NECESSARY SOFTWARE IN THE SPRING OF 1991 DISASTER STRUCK A GROUP OF DRIVINGSAFETY SCHOOLS GOT AN AMENDMENT ADDED TO A NEW DRIVERSAFETY LAW STATING THAT ALL COURSES MUST HAVE AN INSTRUCTOR WHO IS PHYSICALLY PRESENT IN APPROPRIATE PROXIMITY TO THE STUDENT FOR THE TYPE OF INSTRUCTION BEING GIVEN THE DRIVING SCHOOL ASSOCIATION OF TEXAS A TRADE ORGANIZATION SAYS IT WAS CONCERNED THAT THE VIDEO COURSE WOULD UNDERCUT THE INDUSTRY'S CREDIBILITY PARTICULARLY IF STUDENTS COULD BEAT THE SYSTEM BY HAVING A FRIEND TAKE IT FOR THEM OR EVEN FASTFORWARDING THROUGH THE TAPE MESSRS JOHNSON AND OWENS FELT THEY COULD FOIL CHEATERS BUT BECAUSE THEIR SYSTEM IS PROPRIETARY THEY WERE RELUCTANT TO GIVE DETAILS TO THEIR OPPONENTS AND BECAUSE OF THEIR POLITICAL NAIVETE THE AMENDMENT WAS PASSED BEFORE THEY COULD MUSTER THE RESOURCES TO FIGHT IT THE ENTREPRENEURS HOWEVER BELIEVED THAT THEY COULD GET AROUND THE LAW BY HAVING AN INSTRUCTOR AVAILABLE THROUGH A TOLLFREE LINE THEY CONTINUED TO PUSH THEIR IDEA AS THEY DID THOUGH THEY REALIZED THEY HAD A MORE FUNDAMENTAL PROBLEM THEY KNEW NOTHING ABOUT TEACHING DRIVER SAFETY SO THEY ARRANGED A DEMONSTRATION MEETING WITH INDUSTRY EXECUTIVES HOPING TO FIND A PARTNER WILLING TO SELL THEM AN EXISTING COURSE TO ADAPT TO VIDEO IT WAS ANOTHER DISASTER THE DRIVERSAFETY MOB IS A BLUECOLLAR GROUP EXPLAINS PHIL WARD HEAD OF AUSTINBASED USA TRAINING CO WHICH PROVIDES COURSE MATERIAL TO SCHOOLS AROUND THE STATE THESE GUYS CAME IN WEARING WHAT LOOKED LIKE 600 SUITS THEY WERE YOUNG HIP SLICK COOL AND THEY HAD A BETTER MOUSETRAP IT SCARED THE HELL OUT OF US NOBODY VOLUNTEERED TO HELP BUT IN SUBSEQUENT MEETINGS MR WARD WAS IMPRESSED WITH THE ENTREPRENEURS' TENACITY AND HE WAS SOON TRANSFORMED FROM KEY OPPONENT TO BUSINESS PARTNER THE AGREEMENT ALLOWED US INTERACTIVE TO ADAPT HIS COURSE TO VIDEO IN RETURN FOR A 3 CUT ON EACH RENTAL AND THE RIGHT TO DISTRIBUTE IT THROUGH THE 200 BUSINESSES IN TEXAS THAT OFFER USA TRAINING'S CLASSROOM PROGRAM SOME WEALTHY INVESTORS ALSO CHIPPED IN CAPITAL MEANWHILE THE ENTREPRENEURS SOUGHT TO SHAVE COSTS THEY SHOT MUCH OF THE VIDEO THEMSELVES USING FRIENDS AS ACTORS MICHAEL CURRAN A FRIEND WHO HAD BEEN A FREELANCE TELEVISION PRODUCER IN NEW YORK BECAME THE THIRD GENERAL PARTNER IN OCTOBER THE TEA APPROVED THEIR PROGRAM BUT THE FIGHT ISN'T OVER THE DRIVING SCHOOL ASSOCIATION THEN SUED THE TEA IN AUSTIN STATE COURT CHARGING THAT THE COURSE WAS APPROVED ILLEGALLY IF THE ENTREPRENEURS ARE WORRIED THEY AREN'T SHOWING IT THOUGH THEY HAVE TAUGHT ONLY 89 STUDENTS IN THEIR THREE WEEKS IN BUSINESS AT 40 APIECE THEY HAVE ALREADY OBTAINED APPROVAL TO BEGIN OPERATIONS IN NEW MEXICO AND HOPE TO EXPAND TO OTHER STATES THE LAWSUIT IS JUST ONE MORE THORN IN OUR SIDE SHRUGS THE 30YEAROLD MR OWENS AFTER A WHILE YOU JUST GET USED TO IT 9401260182 940126 WHO'S NEWS ASK GROUP INC ASK GROUP INC SANTA CLARA CALIF THE SOFTWARE SUPPLIER NAMED ERIC L MILES TO THE NEW POST OF PRESIDENT OF ITS DATABASE AND CONNECTIVITY BUSINESS UNIT MR MILES 47 YEARS OLD PREVIOUSLY WORKED AT INTERNATIONAL BUSINESS MACHINES CORP 9401260181 940126 TEXAS JOURNAL AIM MANAGER LEARNING FROM PAST HOPES TO REPEAT IT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON JONATHAN SCHOOLAR HAS A REMINDER OF THE PAST CONNECTED TO HIS OFFICE PHONE A BUTTON THAT ONCE TETHERED HIM DIRECTLY TO THE NEW YORK OFFICE OF HARRY HUTZLER THE MAN WHO GUIDED THE WEINGARTEN AND CONSTELLATION MUTUAL FUNDS TO SOME OF THE BEST RECORDS ON WALL STREET THESE DAYS THE BUTTON IS INOPERABLE MR HUTZLER RETIRED A MONTH AGO BUT HIS STYLE OF STOCK PICKING REMAINS IN THE HANDS OF MR SCHOOLAR WHOM MR HUTZLER GROOMED AS SUCCESSOR FOR EIGHT YEARS AND WHAT A RECORD MR SCHOOLAR HAS BEEN GIVEN AMID THE LONGTERM WEAKNESS OF MOST TEXASBASED MUTUAL FUNDS CONSTELLATION AND WEINGARTEN BOTH MANAGED BY HOUSTON'S AIM ADVISORS INC STAND OUT AS EXCEPTIONS OVER THE 10 YEARS ENDED IN DECEMBER CONSTELLATION WAS THE TOP CAPITALAPPRECIATION FUND IN THE COUNTRY RETURNING A CUMULATIVE 410 OVER THE PAST 15 YEARS WEINGARTEN A GROWTH FUND RANKS AS THE NINTHBEST EQUITY FUND IN THE COUNTRY A 10000 INVESTMENT IN 1978 WOULD TODAY BE WORTH MORE THAN 150000 THAT TYPE OF PERFORMANCE TELLS YOU HARRY'S BASIC PHILOSOPHY WORKS SAYS MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC THAT PHILOSOPHY STRESSES THREE PRINCIPLES STAY FULLY INVESTED THROUGH BULL MARKETS AND BEAR MARKETS BASE BUY AND SELL DECISIONS ONLY ON ACCELERATING OR FLAGGING EARNINGS AND DON'T WORRY ABOUT BEING LATE TO JOIN OR LEAVE THE PARTY NINETYNINE PERCENT OF WALL STREET IS TRYING TO FORECAST TOPS AND BOTTOMS SAYS MR SCHOOLAR WE JUST WAIT FOR THEM TO HAPPEN AS A RESULT WEINGARTEN AND CONSTELLATION TYPICALLY BUY IN AFTER THE PARTY HAS BEGUN AND SELL OUT AFTER THE PARTY IS OVER BUT MR SCHOOLAR NOTES WE DON'T MIND TAKING OUR MEAT OUT OF THE MIDDLE NOT THAT WEINGARTEN AND CONSTELLATION ARE INFALLIBLE IN 1984 FOR INSTANCE CONSTELLATION'S RETURN WAS 15 IN 1990 THE FUND'S VALUE DROPPED 4 A YEAR LATER HOWEVER THE FUND MADE UP GROUND IN A BIG WAY RETURNING 704 WEINGARTEN TOO HAS SUFFERED ITS SHARE OF MISTAKES FOR THE PAST TWO YEARS THE FUND HAS RESIDED IN THE BOTTOM 15 OF ALL GROWTH STOCKS ACCORDING TO MORNINGSTAR MUTUAL FUNDS CHICAGO BLAME IT ON HEALTH CARE MESSRS SCHOOLAR AND HUTZLER EVER TRUE TO THE PRINCIPLES HUNG ON TO THOSE STOCKS UNTIL EARNINGS FELL DESPITE A CLINTONADMINISTRATIONINDUCED PLUNGE THAT HAD ALREADY KNOCKED 50 OFF THE VALUE OF SOME STOCKS SOMETIMES YOU LOSE DESPITE PRINCIPLES MR SCHOOLAR SHRUGS PRIOR TO 1986 BOTH WEINGARTEN AND CONSTELLATION WERE INDEPENDENT FUNDS MANAGED BY MR HUTZLER IN 1986 AIM THEN PRIMARILY A FIXEDINCOME FIRM PURCHASED THE RIGHTS TO MANAGE THE TWO FUNDS WITH THEIR COMBINED ASSETS OF ABOUT 250 MILLION MR HUTZLER AGREED TO STAY ON FOR A WHILE THAT SAME YEAR AIM HIRED MR SCHOOLAR THEN 25 YEARS OLD AND A TRADER AT CROSSTOWN FUND RIVAL AMERICAN CAPITAL HE WAS ASSIGNED TO COMANAGE BOTH CONSTELLATION AND WEINGARTEN HIS DUTIES LEARN EVERYTHING I COULD FROM HARRY AND UNLEARN EVERYTHING I ALREADY KNEW SAYS MR SCHOOLAR NOW 32 NOW THAT MR HUTZLER HAS RETIRED MR SCHOOLAR ALONE MANAGES WEINGARTEN WHICH HAS NEARLY 5 BILLION IN ASSETS HE COMANAGES CONSTELLATION WITH 31 BILLION IN ASSETS WITH ROBERT KIPPES BUT MR SCHOOLAR PLANS TO KEEP THE HUTZLER PHILOSOPHY ALIVE AS HE SAYS WHY CHANGE A GOOD THING 9401260180 940126 TEXAS JOURNAL HEARD IN TEXAS HILO AUTOMOTIVE MAY BE READY FOR MOREPOWERFUL PERFORMANCE BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL IS HILO AUTOMOTIVE HITTING ON ALL CYLINDERS OR ARE THE TROUBLES OF THE PAST YEAR SIGNS OF MISFIRES TO COME BASED ON THE HOUSTON COMPANY'S STOCK PERFORMANCE DURING THE PAST YEAR INVESTORS SEEM TO THINK HILO NEEDS AN OVERHAUL AS EARNINGS DETERIORATED AND SALES AT STORES OPEN A YEAR OR MORE STUMBLED THE STOCK TOOK A NOSE DIVE FROM A HIGH EXCEEDING 20 TO A LOW UNDER 10 A NUMBER OF ANALYSTS DROPPED COVERAGE TODAY HILO TRADES JUST SHY OF 11 OR A RELATIVELY CHEAP 145 TIMES PROJECTED 1994 EARNINGS THOSE ANALYSTS STILL AROUND HOWEVER SAY HILO SIMPLY NEEDS A TUNEUP FOR VALUE HUNTERS THEY SAY NOW IS THE TIME TO JUMP ABOARD PARTICULARLY SINCE THE COMPANY IS MAKING A NAME FOR ITSELF NOT ONLY IN RETAILING AUTO PARTS BUT IN COMMERCIAL AUTOPARTS SALES AS WELL THIS IS A STOCK READY TO BOUNCE SAYS STEPHEN GIRSKY AN ANALYST AT PAINEWEBBER IN NEW YORK HILO HE NOTES CURRENTLY TRADES BARELY ABOVE ITS 941 BOOK VALUE NET ASSETS LESS NET LIABILITIES IN AN INDUSTRY THAT COMMANDS BETWEEN 17 AND 22 TIMES BOOK MR GIRSKY BELIEVES THAT AT CURRENT LEVELS THERE'S LITTLE DOWNSIDE RISK TO THE STOCK HILO SHOULD EASILY BE TRADING IN THE HIGHTEENS HE SAYS OTHER ANALYSTS AGREE BUT THEY CAUTION THE BOUNCE LIKELY WON'T COME UNTIL THIS YEAR'S SECOND QUARTER WHEN EARNINGS ARE EXPECTED TO REBOUND FROM 1993'S DISMAL SHOWING I'M TAKING A WAITANDSEE ATTITUDE EVERYTHING DEPENDS ON WHETHER HILO CAN TURN ITS EARNINGS AROUND SAYS JAY R LEOPOLD ANALYST AT LEGG MASON WOOD WALKER IN BALTIMORE WHO RATES THE STOCK A HOLD HE NOTES THOUGH THAT IF EARNINGS COME AROUND AS EXPECTED THERE'S A WHOLE LOT OF UPSIDE TO THIS STOCK DURING 1993 EARNINGS AND SAMESTORE SALES ERODED AS A RESULT OF PRICE WARS WITH COMPETITORS SUCH AS AUTOZONE AND PEP BOYS AS THE COMPETITION SQUEEZED HILO'S PROFIT MARGINS A LACKLUSTER RETAIL ENVIRONMENT AND BAD WEATHER IN HOUSTON HILO'S PRIMARY MARKET WITH HALF OF ITS 150 STORES CONSPIRED TO WRACK SAMESTORE SALES FROM MARCH TO JUNE SAMESTORE SALES FELL BETWEEN 39 AND 58 ON A MONTHLY BASIS COMPARED WITH THE PRIOR YEAR SENDING INVESTORS SCRAMBLING FOR THE EXITS THE STOCK LOST HALF OF ITS VALUE SALES COMPARISONS BEGAN RECOVERING LATE IN THE YEAR HOWEVER BECAUSE OF THE PRICE PRESSURES THE COMPANY HAD TO SELL HIGHERCOST INVENTORIES AT MARKEDDOWN PRICES THE RESULTS SHOW IN HILO'S PRETAX PROFIT MARGINS 73 IN 1992 COMPARED WITH 53 EXPECTED WHEN THE COMPANY REPORTS 1993 FIGURES LATER THIS MONTH EARNINGS LOST AIR FASTER THAN A RUPTURED RADIAL NET INCOME OF 22 MILLION FOR THE THIRD QUARTER WAS A 15 DROP FROM A YEAR EARLIER AND HILO'S PERSHARE EARNINGS OF 54 CENTS FOR THE FIRST NINE MONTHS WAS A SIGNIFICANT DROP FROM THE 70 CENTS A SHARE POSTED IN 1992 MR GIRSKY ESTIMATES THAT INVENTORY DEVALUATION WILL COST THE COMPANY EIGHT CENTS A SHARE IN EARNINGS FOR 1993 ANALYSTS EXPECT PROFIT FOR THE FOURTH QUARTER OF 1993 AND FIRST QUARTER OF 1994 TO REMAIN WEAK BUT TO THOSE CONFIDENT ABOUT HILO'S PROSPECTS THE FUTURE LOOKS CONSIDERABLY BRIGHTER AN IMPROVED ECONOMY IS CERTAIN TO PUMP UP STORE SALES VOLUMES AND THE ADDITION OF 20 TO 25 STORES A YEAR IN DALLAS/FORT WORTH SAN ANTONIO SOUTH TEXAS AND LOUISIANA WILL BOOST REVENUE WITH COSTSAVING MEASURES THE COMPANY IS IMPLEMENTING ANALYSTS EXPECT 1994 PERSHARE PROFIT TO INCREASE A HEALTHY 17 FROM THE 63 CENTS MOST EXPECT WHEN 1993 FIGURES ARE RELEASED MOREOVER NOW THAT HILO HAS DIGESTED ITS HIGHPRICED INVENTORIES IT HAS FOUND WAYS TO COMPETE WITH AUTOZONE AND OTHERS ON PRICE NAMELY BY OFFERING SOME LOWERPRICED BRANDS THE COMPANY LOOKS TO IMPROVE PROFITABILITY THIS YEAR BY SPENDING 5 MILLION TO UPGRADE ITS DISTRIBUTION WAREHOUSE WHICH WILL ALLOW EMPLOYEES TO PICK ITEMS FOR 15 TO 20 STORES AT A TIME INSTEAD OF JUST ONE STORE WHAT SHOULD PROVE MORE IMPORTANT TO HILO'S EARNINGS GROWTH AND ULTIMATELY TO INVESTORS' RETURNS IS THE COMPANY'S EXPANDING SALES TO COMMERCIAL ACCOUNTS UNLIKE MOST OF ITS COMPETITORS HILO ISN'T JUST A RETAIL AUTOPARTS STORE WITH A FLEET OF 300 DELIVERY TRUCKS THE COMPANY IS GAINING MARKET SHARE AS A PRIMARY PARTS SUPPLIER TO INDEPENDENT REPAIR SHOPS PEP BOYS IS TESTING THIS SERVICE IN SOME PARTS OF THE COUNTRY AUTOMOTIVE MARKETING A TRADE PUBLICATION REPORTED LAST SUMMER THAT HILO HAS BECOME THE KEY MOVER IN HOUSTON WHICH ITSELF HAS BECOME A MICROCOSM OF THE AUTOPARTS INDUSTRY WHERE ALL THE MAJOR PLAYERS BOTH RETAIL AND COMMERCIAL COMPETE THE PUBLICATION QUOTED ONE INDEPENDENT WHOLESALE DISTRIBUTOR COMMENTING ON HILO'S ABILITY TO DO EVERYTHING WE DO DELIVERIES SALESMEN RETURNS WITH 60 STORES NOW 70 THEY'RE THE ONLY GAME IN TOWN IN THE PAST THREE YEARS COMMERCIAL SALES HAVE GROWN AS MUCH AS 25 A YEAR COMPARED WITH VIRTUALLY FLAT RETAILSALES GROWTH TODAY COMMERCIAL SALES ACCOUNT FOR ABOUT ONETHIRD OF THE COMPANY'S ANNUAL REVENUE A SURE SIGN OF STRENGTH NOTES ANALYST JAMES D PARKER AT ATLANTABASED ROBINSON HUMPHREY A REGIONAL BROKERAGE HOUSE WILL BE INCREASES IN HILO'S MONTHLY SAMESTORE SALES FIGURES THE COMPANY THIS YEAR HAS BUDGETED FOR MONTHLY SAMESTORE SALES GAINS OF ABOUT 5 ANALYSTS SAY THAT IS CONSERVATIVE AND FEASIBLE MR PARKER LIKE MOST EXPECTS JANUARY SALES TO REMAIN FLAT BUT HE ADDS IT SHOULD PICK UP AFTER THAT TESORO PETROLEUM SAN ANTONIO LEAPED MORE THAN 43 ON THE WEEK GAINING 2875 ON MORE THAN 12 TIMES THE STOCK'S TYPICAL DAILY VOLUME LATE LAST WEEK A GROUP INCLUDING NEW YORK BROKERDEALERS LOEB PARTNERS AND LOEB ARBITRAGE FUND SAID IT HAD ACQUIRED A 54 STAKE IN THE COMPANY'S CUMULATIVE PREFERRED STOCK FOR INVESTMENT PURPOSES THAT SAME DAY THE COMPANY REPORTED THAT UNAUDITED NET INCOME FOR THE FOURTH QUARTER WAS 166 MILLION OR 1 A SHARE COMPARED WITH A LOSS OF 249 MILLION OR 193 A SHARE A YEAR AGO ELECTROCOM AUTOMATION PULLED IN AS THE WEEK'S BIGGEST LOSER DROPPING NEARLY 29 TO 675 ON NEWS THAT A POSTAL CONTRACT THE ARLINGTON MAKER OF DOCUMENTPROCESSING SYSTEMS SOUGHT WENT INSTEAD TO A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP A DAY LATER MERRILL LYNCH DOWNGRADED THE STOCK'S INTERMEDIATE INVESTMENT RATING TO NEUTRAL FROM ABOVE AVERAGE PITTENCRIEFF COMMUNICATIONS OF ABILENE LOST 425 OR NEARLY 15 AFTER ANNOUNCING AN AGREEMENT IN PRINCIPLE TO ACQUIRE FROM ITS PARENT BRITAINBASED PITTENCRIEFF PLC MORE THAN 636 MILLION SHARES OF PITTENCRIEFF COMMUNICATIONS STOCK CURRENTLY HELD BY THE PARENT WHICH IS LIQUIDATING ITS POSITION THE UNIT'S BUSINESS IS MOBILE RADIO COMMUNICATIONS SERVICES DALLAS BROKERAGE HOUSE RAUSCHER PIERCE REFSNES HELPED PUMP UP THE SHARE PRICE OF TETRA TECHNOLOGIES THE WOODLANDS MORE THAN 20 BY RAISING ITS INVESTMENT RATING TO MARKET OUTPERFORMER FROM MARKET PERFORMER THE UPGRADE WAS BASED ON IMPROVED PROFITABILITY AND INCREASED VISIBILITY IN THE COMPANY'S WASTETREATMENT DIVISION FAVORABLE TRENDS IN ITS NATURALGAS DRILLING AND AN IMPROVING MARKET FOR HEAVYEND BRINE FLUIDS 9401260179 940126 BUSINESS BRIEF CORNERSTONE IMAGING INC FIVEFOLD INCREASE IN PROFIT IS ESTIMATED FOR 4TH PERIOD CORNERSTONE IMAGING INC SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER EARNINGS GREW NEARLY FIVEFOLD TO BETWEEN 155 MILLION AND 165 MILLION OR 21 CENTS TO 22 CENTS A SHARE REFLECTING VIGOROUS DEMAND FOR ITS DOCUMENTIMAGING EQUIPMENT THE ESTIMATED RESULTS EXCEED ANALYSTS' EXPECTATIONS OF 19 CENTS TO 20 CENTS A SHARE SAID THOMAS VAN OVERBEEK PRESIDENT AND CHIEF EXECUTIVE OFFICER ACTUAL RESULTS FOR THE PERIOD WILL BE RELEASED FEB 8 NET INCOME WAS 323000 OR SIX CENTS A SHARE A YEAR EARLIER SALES IN THE QUARTER IT IS ESTIMATED DOUBLED TO BETWEEN 145 MILLION AND 15 MILLION UP FROM 74 MILLION A YEAR EARLIER MR VAN OVERBEEK SAID DOCUMENTIMAGE PROCESSING OR THE USE OF A COMPUTER FOR PAPERWORK THAT HAS BEEN CONVERTED TO DIGITIZED COMPUTER DATA IS A FASTGROWING BUSINESS CORNERSTONE IS BENEFITING THROUGH ITS SALE OF PERIPHERAL EQUIPMENT FOR SUCH SYSTEMS INCLUDING HIGHRESOLUTION MONITORS SOFTWARE AND CONTROL SYSTEMS 9401260178 940126 TEXAS JOURNAL ECONOMIC FOCUS HOMEEQUITY LOAN CASE OF EXAGGERATED RISKS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL WHO WOULD HAVE THOUGHT HOMEEQUITY LOANS COULD BE SUCH AN EMOTIONAL ISSUE BUT AS A LEGISLATIVE PANEL TRAVERSES THE STATE HOLDING HEARINGS OVER WHETHER TEXAS SHOULD JOIN THE REST OF THE NATION AND ALLOW HOMEOWNERS TO BORROW FREELY AGAINST THE EQUITY IN THEIR HOUSES YOU CAN ALMOST HEAR THE VIOLINS BEGIN TO SWELL REALTORS AND HOME BUILDERS WARN THAT HOMEOWNERS WOULD QUICKLY FIND THEMSELVES TRAPPED BY DEBT ADVOCACY GROUPS TUG AT THE HEARTSTRINGS DARKLY HINTING THAT ELDERLY OR UNSOPHISTICATED CONSUMERS MIGHT WIND UP HOMELESS BUT NOW LIKE A BRICK THROUGH A WINDOW THE FEDERAL RESERVE BANK OF DALLAS HAS HEAVED SOMETHING UNUSUAL INTO THE DEBATE FACTS IN A STUDY PUBLISHED IN THE LATEST FINANCIAL INDUSTRY ISSUES REPORT FORMER FED ECONOMIST LINDA M HOOKS BLOWS GAPING HOLES IN THE ARGUMENT THAT HOMEEQUITY LOANS CARRY UNDUE RISK FOR BORROWERS OR BANKS INDEED HER ANALYSIS OF LOAN PORTFOLIOS OF BANKS OUTSIDE OF TEXAS SUGGESTS THAT HOMEEQUITY LINES HAVE THE LOWEST DELINQUENCY RATE OF ALL LOAN CATEGORIES OVERALL JUST 063 OF HOMEEQUITY LINES OF CREDIT WERE CLASSIFIED AS NONCURRENT IN LAST YEAR'S THIRD QUARTER MEANING THEY WERE AT LEAST 90 DAYS PAST DUE OR THAT BANKS HAD STOPPED ACCRUING INTEREST ON THEM BY CONTRAST THE AVERAGE NONCURRENT RATE OF ALL LOANS WAS 258 THAT WAS A SURPRISING RESULT SAYS DR HOOKS WHO IS CURRENTLY A PROFESSOR OF MONEY AND BANKING AT WASHINGTON AND LEE UNIVERSITY LEXINGTON VA WE KNEW HOMEEQUITY LOANS WOULD BE GOOD BUT THESE WERE QUITE GOOD EVEN MORE SURPRISING IS HOW WELL HOMEEQUITY LOANS PERFORMED IN ECONOMICALLY DEPRESSED REGIONS OF THE COUNTRY IN THE PACIFIC CENSUS REGION WHICH IS DOMINATED BY CALIFORNIA JUST 059 OF HOMEEQUITY LOANS WEREN'T CURRENT COMPARED WITH 329 FOR ALL LOANS SIMILAR PERFORMANCE HOLDS FOR THE TROUBLED MIDDLE ATLANTIC AND NEW ENGLAND REGIONS I THINK THE MOST IMPORTANT THING IS THAT EVEN IN ECONOMIC DOWNTURNS CONSUMERS DON'T SEEM TO BE OVERBURDENED BY HOMEEQUITY LOANS DR HOOKS SAYS THE STUDY ALSO POINTS OUT THAT DESPITE ALL THE BROUHAHA IN TEXAS HOMEEQUITY LOANS ACTUALLY REPRESENT JUST 6 OF BANKS' TOTAL LOAN PORTFOLIO HARDLY THE KIND OF NUMBER THAT WOULD ROIL THE TEXAS FINANCIAL SYSTEM SO THE DOWNSIDE OF HOMEEQUITY LOANS IS LIMITED BUT WHAT ARE THE BENEFITS FIRST IT HELPS TO KNOW THAT SUCH LOANS COME IN TWO BASIC FLAVORS ONE IS A TRADITIONAL SECOND MORTGAGE A FIXEDAMOUNT LOAN EXTENDED FOR A SPECIFIED PERIOD THAT GENERALLY REQUIRES MONTHLY PAYMENTS TEXAS LAW ALLOWS FOR THIS TYPE OF LOAN BUT ONLY IF THE PROCEEDS ARE USED FOR HOME IMPROVEMENTS OR TO PAY BACK TAXES THE SECOND VERSION IS THE HOMEEQUITY LINE OF CREDIT THESE ARE TYPICALLY SET UP AS REVOLVING ACCOUNTS THAT PERMIT BORROWING UP TO THE AMOUNT OF THE CREDIT LINE WITH FLEXIBLE REPAYMENT SCHEDULES AND VARIABLE INTEREST RATES LIKE A CREDIT CARD BACKED BY REAL ESTATE THE ADVANTAGE OF BOTH TYPES OF LOANS IS THAT THEY CARRY MUCH LOWER INTEREST RATES THAN OTHER TYPICAL CONSUMER LOANS BECAUSE THEY ARE SECURED BY COLLATERAL A HOUSE FOR INSTANCE WHILE YOU MIGHT PAY MORE THAN 15 INTEREST ON OUTSTANDING CREDITCARD DEBT HOMEEQUITY LINES RUN CLOSER TO 7 AND THOSE FIGURES ACTUALLY UNDERSTATE THE ADVANTAGES THAT'S BECAUSE THE TAX REFORM ACT OF 1986 PHASED OUT INTEREST DEDUCTIONS FOR CONSUMER LOANS BUT STILL ALLOWS A WRITEOFF FOR HOME MORTGAGES NOT SURPRISINGLY ONE OF THE MAIN USES FOR BOTH TYPES OF HOMEEQUITY LOANS IS TO PAY OFF OTHER DEBTS ACCORDING TO A SEPARATE FED STUDY 35 OF SECOND MORTGAGES AND 38 OF CREDIT LINES WENT TOWARD CONSOLIDATING OTHER DEBTS THE OTHER MAJOR USE WAS HOME IMPROVEMENT BUT THAT'S ECONOMICS NOW FOR POLITICS OPPOSITION RUNS DEEP TO ANY LAW THAT WOULD MAKE IT EASIER FOR BANKS TO SINK THEIR CLAWS INTO BORROWERS' HOMES A SENTIMENT THAT DATES BACK TO THE EARLY DAYS OF THE REPUBLIC WHEN DEBTORS FLED HERE TO ESCAPE FINANCIAL WOES FANNING THE HOSTILITY BUILDERS WHO WORRY THAT BANKS WOULD FORCE THEM TO PLEDGE THE EQUITY IN THEIR OWN RESIDENCES AS ADDITIONAL COLLATERAL FOR DEVELOPMENT LOANS AND REALESTATE AGENTS WHO FEAR HOME SALES WOULD BE HAMPERED IF HOUSES CARRY TOO MANY LIENS IN RESPONSE THE TEXAS BANKERS ASSOCIATION HAS PROPOSED REFORM LANGUAGE THAT WOULD ALLOW GENERAL HOMEEQUITY LENDING WHILE LEAVING TEXAS LAW THE MOST RESTRICTIVE IN THE COUNTRY SAYS ROBERT HARRIS PRESIDENT AMONG OTHER THINGS THE LANGUAGE WOULD PREVENT CROSSCOLLATERALIZATION TO ASSUAGE THE HOME BUILDERS WOULD LIMIT TOTAL INDEBTEDNESS TO 90 OF A HOME'S VALUE AND WOULD GIVE HOMEOWNERS 18 DAYS TO BACK OUT OF A LOAN IF THEY HAVE SECOND THOUGHTS JOHN MONTFORD THE STATE SENATOR WHO HEADS THE PANEL CONDUCTING THE HEARINGS SAYS CONSUMER PROTECTIONS WILL HAVE TO BE EVEN STRICTER BEFORE HE WILL BACK A CONSTITUTIONAL AMENDMENT EXPANDING HOMEEQUITY LENDING YET DESPITE HIS MISGIVINGS HE SAYS I FIND SOME ILLOGIC IN PREVENTING THE PEOPLE OF TEXAS FROM DECIDING THIS 9401260177 940126 COMMODITIES PRICES OF COTTON FUTURES REACH CONTRACT HIGHS FOR 10TH STRAIGHT DAY AS WORLD SUPPLY SHRINKS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COTTON FUTURES PRICES SET CONTRACT HIGHS FOR THE 10TH CONSECUTIVE DAY AS TRADERS TOOK STOCK OF THE DWINDLING GLOBAL SUPPLY OF COTTON AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS UP 072 CENT TO 7378 CENTS A POUND SETTING THE TONE FOR THE US FUTURES MARKET IS THE UNEXPECTED PROSPECT OF STRONG DEMAND AMONG OVERSEAS IMPORTERS FOR USGROWN COTTON THAT ANALYSTS SAY IS BECAUSE HIGHQUALITY COTTON IS IN SHORT SUPPLY THE US AGRICULTURE DEPARTMENT'S ESTIMATE OF WORLD COTTON PRODUCTION HAS FALLEN TO 803 MILLION BALES FROM 854 MILLION BALES ONLY SIX MONTHS AGO ORIGINALLY THE US WAS EXPECTED TO HAVE ANOTHER POOR SEASON OF SHIPMENTS WITH STRONG COMPETITION FOR A LIMITED DEMAND MARKET SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON BUT WE ARE SEEING A COMPLETE CHANGE IN THE OUTLOOK FOR US EXPORTS IN THE SECOND HALF OF THE COTTON SEASON AMONG OTHER THINGS PAKISTAN ONE OF THE MAJOR INTERNATIONAL COMPETITORS FOR THE US COTTONEXPORTING BUSINESS HAS HARVESTED A MUCH SMALLERTHANEXPECTED CROP THIS YEAR LAST AUGUST THE BEGINNING OF THE 199394 GROWING SEASON PAKISTANI COTTON PRODUCTION HAD BEEN PEGGED AT ABOUT 87 MILLION BALES CURRENTLY HOWEVER THE US AGRICULTURE DEPARTMENT IS FORECASTING A MUCH SMALLER PAKISTANI CROP OF ABOUT 65 MILLION BALES AS A RESULT PAKISTAN WILL BECOME A NET IMPORTER OF COTTON THIS YEAR AND HAS CUT BACK ITS EXPORT SHIPMENTS MS KAUL SAID NOR IS PAKISTAN THE ONLY COTTONPRODUCING COUNTRY EXPERIENCING SUPPLY PROBLEMS CHINA ALSO HAS A SMALLERTHANEXPECTED CROP THE AGRICULTURE DEPARTMENT WHICH ORIGINALLY ESTIMATED THE 199394 CHINESE COTTON CROP AT 207 MILLION BALES NOW FORECASTS THE CROP AT 185 MILLION BALES MOST ANALYSTS EXPECT THE CHINESE CROP TO BE EVEN SMALLER THAN THAT MOST ESTIMATES OF CHINA'S PRODUCTION NOW RANGE FROM 138 MILLION TO 15 MILLION BALES INDIA ANOTHER COTTONPRODUCING COUNTRY ALSO HAS SUSPENDED SALES OF ITS REMAINING EXPORTABLE SUPPLY OF COTTON AND FARMERS IN AUSTRALIA WHICH IS THE ONLY MAJOR COTTON PRODUCER BESIDES THE US THAT STILL HAS LARGE STOCKS OF COTTON HAVE HAD INSUFFICIENT RAIN FOR THE CROP THEY ARE NOW CULTIVATING THUS THE US IS THE ONLY MAJOR PRODUCER STILL WELLPOSITIONED TO ACCOMMODATE THE BURGEONING DEMAND FOR COTTON DESPITE THE FACT THAT THE US CROP WAS ALSO SMALLER THAN EXPECTED THIS YEAR IN AUGUST THE AGRICULTURE DEPARTMENT PEGGED US PRODUCTION AT 185 MILLION BALES THE DEPARTMENT IS NOW ESTIMATING THE CROP AT 162 MILLION BALES BAD WEATHER IN THE MISSISSIPPI DELTA GROWING REGIONS WAS LARGELY TO BLAME FOR THE SHORTFALL MS KAUL SAID IN OTHER COMMODITY MARKETS YESTERDAY LUMBER FUTURES PRICES FELL AS BAD WEATHER RETURNED TO FORECASTS FOR MUCH OF THE NATION AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR MARCH DELIVERY WAS DOWN THE PERMISSIBLE DAILY LIMIT OF 10 TO SETTLE AT 40780 PER THOUSAND BOARD FEET THE COLD TEMPERATURES AND PRECIPITATION NOW FORECAST FOR MUCH OF THE MIDWEST AND WESTERN US ARE LIKELY TO HAMPER CONSTRUCTION OF NEW HOMES ANALYSTS SAY THAT PROSPECT IS DRAWING DOWN PRICES ON THE CASH MARKET FOR LUMBER SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH ADDING THAT THE LUMBER MARKET IS VERY MUCH UNDER THE INFLUENCE OF WHAT CASH IS DOING IN THE SHORT TERM ORANGE JUICE FUTURES PRICES FELL AS THE ANNUAL NONFROST JANUARY SELLOFF CONTINUED AT THE COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS DOWN 22 CENTS TO 10445 A POUND THE PEAK PERIOD FOR A FROST THAT COULD POTENTIALLY DAMAGE FLORIDA'S ORANGE CROP IS MIDDECEMBER TO MIDJANUARY EACH YEAR PRICES TEND TO RISE AT THE BEGINNING OF THIS PERIOD ON THE POSSIBILITY THAT A FREEZE MIGHT OCCUR IF AS IS THE CASE THIS YEAR A FROST FAILS TO DEVELOP WITHIN THIS PERIOD TRADERS TEND TO LIQUIDATE THEIR LONG POSITIONS OR BETS THAT FUTURES PRICES WILL RISE THE PROCESS OF SELLING FUTURES CONTRACTS TO LIQUIDATE LONG POSITIONS EXERTS DOWNWARD PRESSURE ON FUTURES PRICES 9401260176 940126 TEXAS JOURNAL IMAGINE THE TIPS IF THEY GOT DOWN ON THEIR KNEES BY ROBERT JOHNSON YOU'VE ALWAYS SUSPECTED IT AND NOW YOU KNOW IT'S TRUE HOUSTONIANS LIKE TO FEEL ABOVE EVERYBODY ELSE EVEN WHEN THEY'RE SITTING IN A SOONTOBERELEASED STUDY MICHAEL LYNN AN ASSISTANT PROFESSOR OF MARKETING AT THE UNIVERSITY OF HOUSTON FOUND THAT WAITERS IN TWO HOUSTON RESTAURANTS WHO SQUATTED BESIDE THEIR CUSTOMERS' TABLES RECEIVED HIGHER TIPS THAN THOSE WHO STOOD A MALE GRADUATE STUDENT WHO WAITED TABLES AT A MEXICAN CAFE TESTED 270 GROUPS OF CUSTOMERS SQUATTING FOR ABOUT HALF OF THEM THE RESULT HIS AVERAGE TIP CAME TO 175 OF THE BILL WHEN HE SQUATTED COMPARED WITH 15 WHEN HE STOOD IN A SIMILAR TEST AT A CHINESE RESTAURANT A FEMALE GRADUATE STUDENT RECEIVED AN AVERAGE TIP OF 15 WHILE SQUATTING COMPARED WITH 12 WHILE STANDING SQUATTING IS FRIENDLIER SAYS DR LYNN YOU INCREASE THE POSTURAL CONGRUENCE AND EYE CONTACT AND THAT RAISES THE LEVEL OF INTIMACY NOW FOR THE TOUGH QUESTION WHY WOULD ANYBODY STUDY THIS IN THE FIRST PLACE WELL BE ASSURED THAT THIS ISN'T YET ANOTHER DUBIOUS PROJECT FINANCED WITH FEDERAL GRANT MONEY NOBODY PAID FOR IT WE JUST DID IT SAYS DR LYNN AND THE REASON HE SAYS HE HAS BEEN CURIOUS ABOUT TIPPING TECHNIQUES EVER SINCE HE WAITED TABLES AT SEVERAL RESTAURANTS TO PUT HIMSELF THROUGH COLLEGE 9401260174 940126 MARKETING & MEDIA CAPITAL CITIES/ABC FOURTHPERIOD NET CLIMBED BY 21 BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC REPORTED A 21 JUMP IN FOURTHQUARTER NET INCOME HELPED BY A PICKUP IN BROADCAST REVENUE FROM BOTH TELEVISION AND RADIO CAPITAL CITIES SAID FOURTHQUARTER NET WHICH WAS SLIGHTLY BETTER THAN EXPECTED CLIMBED TO 1667 MILLION OR 1035 A SHARE FROM 1379 MILLION OR 838 A SHARE IN THE YEAREARLIER PERIOD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF CAPITAL CITIES ROSE 1 OR 02 TO CLOSE AT 664 AFTER CLIMBING 350 EARLIER IN THE DAY THE STOCK IS UP MORE THAN 7 SO FAR THIS YEAR THERE'S GOOD STRONG REVENUE GROWTH SAID JAY NELSON AN ANALYST AT BROWN BROTHERS HARRIMAN & CO BETTERTHANEXPECTED TOPLINE REVENUE GROWTH IS WELCOME REVENUE IN THE FOURTH QUARTER WAS 176 BILLION UP NEARLY 7 FROM 164 BILLION REVENUE FROM BROADCASTING JUMPED A HEALTHY 9 WHILE REVENUE FROM PUBLISHING EASED 29 ABC TELEVISION NETWORK IN PARTICULAR REPORTED BIG GAINS BECAUSE OF HIGHER RATINGS AND STRONGER ADVERTISING REVENUE ABC RADIO NETWORKS ALSO PERFORMED STRONGLY ABOUT 85 OF THE COMPANY'S INCOME IS DERIVED FROM BROADCASTING THEY HAD AN ESPECIALLY STRONG QUARTER IN BROADCASTING SAID EDWARD HATCH AN ANALYST AT UBS SECURITIES THEY HAD BETTER RATINGS AND TIGHT COST CONTROLS FOR THE FULL YEAR THE NEW YORKBASED MEDIA GIANT REPORTED NET INCOME OF 4553 MILLION OR 2779 A SHARE INCLUDING A CHARGE OF 121 MILLION OR 74 CENTS A SHARE FOR EARLY DEBT REDEMPTIONS YEAREARLIER EARNINGS WERE 2461 MILLION OR 1482 A SHARE INCLUDING A NONCASH ADJUSTMENT OF 143 MILLION OR 863 A SHARE TO REFLECT A CHANGE IN ACCOUNTING FOR RETIREE BENEFITS AVERAGE SHARES DECLINED LAST YEAR AS A RESULT OF THE PURCHASE OF 11 MILLION SHARES IN DECEMBER THE COMPANY SAID IT EXPECTS TO CONTINUE TO REPURCHASE ITS SHARES ON THE OPEN MARKET REVENUE ROSE 62 TO 567 BILLION FROM 534 BILLION WHILE RATINGS HAVE BEEN ON THE UPSWING LOOKING AHEAD CBS WILL STEAL THE SHOW WITH THE OLYMPICS IN THE FIRST QUARTER SAID MR HATCH 9401260173 940126 INTERNATIONAL RUSSIA'S DIAMOND INDUSTRY IS DEBATING LOOSENING MARKETING TIES TO DE BEERS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW A DEBATE HAS BROKEN OUT IN RUSSIAN DIAMOND CIRCLES OVER HOW TO MAKE THE BEST USE OF ONE OF THE NATION'S GREATEST SOURCES OF WEALTH THE HIGHLY SECRETIVE RUSSIAN DIAMOND INDUSTRY HAS TO DECIDE WHETHER IT WOULD BE BEST SERVED BY CONTINUING TO SELL NEARLY ALL OF ITS ROUGH GEMQUALITY DIAMONDS THROUGH SOUTH AFRICABASED DE BEERS CONSOLIDATED MINES LTD OR BY TAKING A MORE INDEPENDENT APPROACH THE DISPUTE LIES BEHIND A RECENT OUTFLOW OF RUSSIAN ROUGH DIAMONDS THAT HAS SPARKED ACCUSATIONS OF DUMPING AND STRAINED MOSCOW'S RELATIONS WITH DE BEERS IT ALSO HAS DRAWN DIAMOND MERCHANTS TO MOSCOW IN SEARCH OF NEW BUSINESS RUSSIA'S DECISION ULTIMATELY COULD ROCK WORLD DIAMOND MARKETS DE BEERS IS ABSOLUTELY DOMINANT ALTHOUGH NOT ALL ALONE SAID CHAIM EVENZOHAR A DIAMOND EXPERT WHO PUBLISHES AN INFLUENTIAL INDUSTRY MAGAZINE IN TEL AVIV BUT THEY CAN'T DICTATE AS IN THE PAST AND MOSCOW IS A GOOD EXAMPLE OF THAT RUSSIA IS UNDER CONTRACT TO FUNNEL TO DE BEERS 95 OF ITS UNCUT DIAMONDS UNTIL MID1995 THE REMAINDER CAN BE SOLD INDEPENDENTLY SUBJECT TO RESTRICTIONS ON PRICES VOLUME AND SELLING SITES SOME RUSSIAN DIAMOND OFFICIALS SAY THAT THE TERMS OF THAT CONTRACT SHOULD BE RENEGOTIATED AT THE SAME TIME RUSSIA NEEDS CASH AND GOVERNMENT OFFICIALS HAVE SAID RUSSIA MIGHT SEEK FOREIGN LOANS USING STOCKPILED UNCUT DIAMONDS AS COLLATERAL THE IDEA OF COLLATERALIZING STOCKPILED DIAMONDS HAS BROUGHT RUSSIAN OFFICIALS ABOUT A DOZEN PROPOSALS FROM FOREIGN DIAMOND MERCHANTS ON HOW TO MARKET RUSSIA'S DIAMONDS IN THE FUTURE SOME OF THESE OFFERS HINGE ON RAISING LOANS FOR A FEE OTHERS IN EXCHANGE FOR ACCESS TO A SHARE OF RUSSIA'S UNCUT DIAMONDS WHOEVER COULD ARRANGE SUCH AN AGREEMENT WOULD STAND TO GAIN MILLIONS OF DOLLARS PLUS A FOOTHOLD IN THE RUSSIAN DIAMOND INDUSTRY WHICH ACCOUNTS FOR A QUARTER OF THE WORLD'S ROUGHDIAMOND PRODUCTION ONE CONFIDENTIAL PROPOSAL MADE TO THE GOVERNMENT IN DECEMBER CAME FROM NEW YORKBASED LAZARE KAPLAN INTERNATIONAL A DIAMOND MERCHANT THAT HAS BEEN DOING BUSINESS IN RUSSIA FOR MORE THAN 20 YEARS IT SUGGESTS RAISING 33 BILLION IN 10YEAR LOANS PROBABLY FROM THE US GOVERNMENT AND PROPOSES A 15 FEE FOR LAZARE KAPLAN THE CONCEPT WOULD ALLOW DE BEERS TO CONTINUE ITS EXCLUSIVE RUSSIAN PURCHASES THE PROPOSAL DOESN'T EXPLAIN HOW LAZARE KAPLAN WOULD GO ABOUT SECURING SUCH FUNDS FROM THE US GOVERNMENT OR MULTILATERAL ORGANIZATIONS WHICH DON'T GENERALLY MAKE COLLATERALIZED LOANS NOR DOES IT GUARANTEE THAT IT COULD DO SO BUT IT SAYS THAT INITIAL APPROACHES HAVE BEEN MADE THE PROPOSAL IS BEING TAKEN SERIOUSLY IN PART BECAUSE THE CHAIRMAN OF THE COMPANY MAURICE TEMPELSMAN IS WELLKNOWN FOR HIS CONNECTIONS TO THE POLITICALLY PROMINENT KENNEDY FAMILY AND PRESIDENT CLINTON RUSSIAN OFFICIALS ARE FAMILIAR WITH STORIES OF THE US PRESIDENT'S RELAXING ABOARD THE TEMPELSMAN YACHT LAST SUMMER IN MASSACHUSETTS WITH FORMER FIRST LADY JACQUELINE ONASSIS WITH ITS DIAMOND PRODUCTION LEVELS GEOLOGICAL RESERVES STOCKPILES AND CUTTING FACILITIES RUSSIA'S DIAMOND INDUSTRY STANDS CENTRAL BOTH INTERNATIONALLY AND WITHIN THE RUSSIAN ECONOMY SAYS LAZARE KAPLAN INTERNATIONAL SPOKESMAN ROBERT KASMIRE DECISIONS CONCERNING THAT INDUSTRY'S FUTURE ARE AMONG THE MOST IMPORTANT AND APPROPRIATE TO BE MADE BY THE RUSSIAN GOVERNMENT SUCH A PROPOSAL COULD SUPPORT THE STATUS QUO AND ASSURE DE BEERS OF ANOTHER DECADE'S HOLD OVER THE RUSSIAN MARKET DE BEERS'S DEPUTY GENERAL MANAGER IN MOSCOW ALAN CAMPBELL SAID DE BEERS ITSELF HAD NOTHING TO DO WITH THE PROPOSAL OTHER POSSIBILITIES WOULD WEAN RUSSIA FROM DE BEERS'S EXCLUSIVE MARKETING BY SEEKING NONEXCLUSIVE RIGHTS TO BUY PART OF RUSSIA'S UNCUTDIAMOND SUPPLY IN EXCHANGE FOR A COMMERCIAL LOAN COLLATERALIZED BY THE DIAMOND STOCKPILE OR BY ADVOCATING THAT RUSSIA FUNNEL MORE OF ITS ROUGH PRODUCT TO ITS OWN POLISHING INDUSTRY IN ORDER TO SELL THE MORE EXPENSIVE POLISHED GEMS ITSELF THE LATTER IDEA WOULDN'T CONTRAVENE DE BEERS'S CONTRACT WHICH DOESN'T COVER POLISHED GEMS I HAD A DREAM THAT SOMEDAY WE WOULD POLISH RUSSIAN ROUGH WITH RUSSIAN WORKERS IN A JOINT PARTNERSHIP WITH THE RUSSIANS IN RUSSIA AND TODAY IT IS A REALITY SAYS JOSEF KASZIRER HEAD OF ANTWERP BELGIUMBASED KASZIRER DIAMONDS MR KASZIRER USED TO BE ONE OF DE BEERS'S FAVORED BUYERS BUT SAYS HE WAS EXCLUDED IN 1992 AFTER HE SET UP A JOINT VENTURE WITH RUSSIA TO DEVELOP THE DOMESTIC POLISHING INDUSTRY DE BEERS CONTROLS MORE THAN 80 OF THE WORLD'S ROUGHDIAMOND MARKET DIAMOND PRODUCERS WHO WORK WITH DE BEERS GENERALLY AGREE TO SELL ALL OF THEIR DIAMONDS THROUGH THE SOUTH AFRICAN CONCERN UNDER A SYSTEM KNOWN AS SINGLECHANNEL MARKETING DE BEERS MIXES DIAMONDS FROM AROUND THE WORLD INTO ASSORTMENTS FOR BUYERS AND RELEASES ONLY AS MANY AS IT CALCULATES WON'T DISRUPT PRICES PRODUCERS AGREE TO ACCEPT A QUOTA OF WORLD SALES AS THEIR SHARE OF THE MARKET26 IN RUSSIA'S CASE WHICH DE BEERS PROMISES TO BUY THE SYSTEM HAS SERVED TO KEEP THE DIAMOND MARKET STEADY THROUGH NUMEROUS RECESSIONS SATISFYING MANY SUPPLIERS AND MIDDLEMEN BUT AS A RESULT THE DE BEERS CARTEL HAS HAD THE UPPER HAND IN DIAMONDDEVELOPMENT POLICY IN PRODUCING COUNTRIES RUSSIA HAS LARGELY MANAGED TO AVOID THE TEMPTATION OF SELLING OFF MASSES OF ITS DIAMONDS FOR A QUICK INFUSION OF CASH LAST YEAR IT EARNED AT LEAST 15 BILLION FROM DIAMOND EXPORTS INCLUDING 114 BILLION FROM ROUGH GEMS SOLD THROUGH DE BEERS AND THE REST FROM SALES OF INDUSTRIAL AND POLISHED DIAMONDS RUSSIAN DIAMOND AUTHORITIES HAVE ALWAYS BEEN VERY PRUDENT AND UNDERSTAND THE NEED TO PLAY THEIR ROLE IN KEEPING THE MARKET STABLE DE BEERS'S MR CAMPBELL SAID BUT NOW DIAMOND OFFICIALS ARE SPLIT OVER WHETHER WORKING THROUGH DE BEERS IS STILL IN RUSSIA'S BEST INTERESTS ONE OF THE TWO KEY STRUCTURES DEALING WITH ROUGH DIAMONDS IN RUSSIA IS THE STATECONTROLLED JOINTSTOCK COMPANY ALMAZYROSSIISAKHA IT HAS RESPONSIBILITY FOR EXPORTING ROUGH RUSSIAN DIAMONDS AND FAVORS STICKING WITH DE BEERS BUT OFFICIALS AT KOMDRAGMET THE STATE COMMITTEE FOR PRECIOUS METALS AND STONES THAT CONTROLS THE NATION'S DIAMOND STOCKPILES SAY THAT RUSSIA MAY DO BETTER BY EXPORTING A GREATER PROPORTION OF ITS UNCUT DIAMONDS ITSELF AND BY FUNNELING MORE TO ITS POLISHING INDUSTRY DE BEERS DEVELOPED A BRILLIANT SCHEME BUT AS WITH ANY SYSTEM IT BECOMES OUTDATED PHYSICALLY AND MORALLY SAID KOMDRAGMET DEPUTY CHAIRMAN LEONID GURYEVICH OUR GOAL ISN'T TO CHANGE RELATIONS WITH DE BEERS IT'S TO DETERMINE THE OPTIMAL LEVEL FROM THE POINT OF VIEW OF HARDCURRENCY EARNINGS OF WHAT TO DO WITH OUR RAW MATERIALS 9401260172 940126 BAUSCH & LOMB UNIT IS ACCUSED OF VIOLATING FTC ADVERTISING ORDER WASHINGTON THE FEDERAL TRADE COMMISSION CHARGED A BAUSCH & LOMB INC UNIT WITH VIOLATING A COMMISSION ORDER AGAINST MAKING FALSE CLAIMS ABOUT ITS HEARING AID THE COMMISSION SAID THE UNIT DAHLBERG INC CLAIMED IN A NATIONAL ADVERTISING CAMPAIGN THAT ITS MIRACLE EAR CLARIFIER WOULD AMPLIFY SOUNDS THE USER WANTED TO HEAR SUCH AS SPEECH AND REDUCE UNWANTED BACKGROUND NOISE THE AGENCY SAID THE CLAIMS ARE FALSE AND VIOLATE THE TERMS OF A 1976 SETTLEMENT BETWEEN DAHLBERG AND THE FTC THAT PROHIBITED THE COMPANY FROM MAKING FALSE CLAIMS ABOUT ITS HEARING AIDS THE FTC ASKED THE US DISTRICT COURT IN MINNEAPOLIS TO PROHIBIT DAHLBERG BASED IN GOLDEN VALLEY MINN FROM MAKING SIMILAR FALSE CLAIMS AND TO ORDER THE COMPANY TO PAY SUBSTANTIAL CIVIL PENALTIES DAHLBERG DISPUTED THE FTC'S CHARGES SAYING IT BELIEVES ITS ADVERTISING FOR THE CLARIFIER IS SUBSTANTIATED IT FILED SUIT LAST WEEK IN A FEDERAL COURT IN MINNESOTA CONTENDING THAT THE FTC HAS NO AUTHORITY TO REGULATE PERFORMANCE AND USE CLAIMS MADE BY HEARINGAID MANUFACTURERS IN THEIR ADVERTISING AND THAT JURISDICTION FOR SUCH ISSUES LIES WITH THE US FOOD AND DRUG ADMINISTRATION DAHLBERG ADDED THAT THE FDA IS CONSIDERING ADOPTING CLEARER GUIDELINES FOR HEARINGAID ADVERTISING SALES AND DISTRIBUTION AND THAT IT IS COOPERATING FULLY BAUSCH & LOMB ACQUIRED DAHLBERG LAST SUMMER BUT THE FTC'S INVESTIGATION OF DAHLBERG HAD LED THE ROCHESTER NY COMPANY TO LOWER ITS OFFER TO 139 MILLION FROM 158 MILLION LAST YEAR THE FDA ALSO SENT LETTERS TO DAHLBERG AND SIX OTHER HEARINGAID MAKERS WARNING THAT THEIR CLAIMS ABOUT SIMILAR DEVICES COULD LEAD TO FEDERAL CHARGES COMMISSION OFFICIALS SAID MOST OF THE ADS HAVE BEEN WITHDRAWN THE FTC CHARGES AGAINST DAHLBERG STEM FROM ADS THAT APPEARED FROM 1988 THROUGH 1992 9401260171 940126 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB NOW THAT PRESIDENT CLINTON HAS URGED CONGRESS AND THE NATION TO TAKE ON THE BIG AND IMPORTANT ISSUES TAKE A MOMENT TO PONDER THE SMALL AND IMPORTANT ISSUE OF MANSOUR EL KIKHIA AT A TIME WHEN AMERICANS ARE INCREASINGLY INCLINED TO TURN INWARD HIS STORY OFFERS A POIGNANT REMINDER THAT OUTLAW REGIMES ARE STILL PROWLING THE WORLD AND THAT THE US STILL HAS A SPECIAL RESPONSIBILITY TO STAND UP TO THEM MANSOUR EL KIKHIA IS AN AMERICAN RESIDENT AND STRUGGLING BUSINESSMAN MORE IMPORTANT HE ONCE WAS LIBYA'S FOREIGN MINISTER AND UNITED NATIONS AMBASSADOR A DECADE AGO HE BROKE AWAY FROM THE MADCAP REGIME OF MOAMMAR GADHAFI AND WENT INTO EXILE TO OPPOSE IT LAST MONTH A STRANGE THING HAPPENED TO MR KIKHIA WHILE IN CAIRO TO ATTEND A HUMAN RIGHTS CONFERENCE HE SIMPLY DISAPPEARED FROM HIS HOTEL IT'S PRETTY CLEAR HE DIDN'T LEAVE VOLUNTARILY THOUGH HE'S A DIABETIC THE INSULIN AND SYRINGES HE DEPENDS ON WERE LEFT BEHIND TO ANYONE WHO HAS FOLLOWED THE GADHAFI REGIME THIS DOESN'T LOOK LIKE MUCH OF A MYSTERY THERE SEEMS LITTLE DOUBT THAT AGENTS ACTING ON BEHALF OF LIBYA ABDUCTED MR KIKHIA TO SILENCE HIM MR KIKHIA'S FAMILY IS CONVINCED HE WAS SPIRITED OUT OF EGYPT AND INTO NEIGHBORING LIBYA A COUSIN LIVING IN TEXAS WHO ALSO IS NAMED MANSOUR EL KIKHIA SAYS HE WAS TOLD BY A RELIABLE SOURCE THIS WEEK THAT THE DISSIDENT WAS SEEN BEING LED OUT OF AN AIRPLANE IN THE LIBYAN CAPITAL OF TRIPOLI SHORTLY AFTER HIS CAPTURE LIBYA HAS A WELLDOCUMENTED HISTORY OF THIS KIND OF POLITICAL TERRORISM SINCE 1986 THE STATE DEPARTMENT SAYS LIBYAN AGENTS HAVE MURDERED ANTIGADHAFI EXILES IN ITALY GREECE AND FRANCE AND TRIED UNSUCCESSFULLY IN AUSTRIA TWO OTHER DISSIDENTS DISAPPEARED IN EGYPT A FEW YEARS AGO WITH THAT KIND OF RECORD COL GADHAFI DOESN'T DESERVE THE BENEFIT OF THE DOUBT NOW BY SHEER COINCIDENCE PRESIDENT CLINTON'S NATIONAL SECURITY ADVISER ANTHONY LAKE HAS A PASSING ACQUAINTANCE WITH THE KIKHIA FAMILY AND THAT HAS HELPED PUT THIS CASE ON THE WHITE HOUSE RADAR SCREEN PRESIDENT CLINTON HAS WRITTEN A PERSONAL LETTER TO EGYPTIAN PRESIDENT HOSNI MUBARAK ASKING EGYPT TO HELP TRACK DOWN MR KIKHIA OTHERWISE THE WORLD HAS LITTLE NOTICED YET THE KIKHIA CASE SHOULDN'T SIMPLY BE FORGOTTEN FOR ONE THING IT ARISES JUST AS LIBYA IS CONDUCTING A CONCERTED CAMPAIGN TO WRIGGLE OUT OF UN ECONOMIC SANCTIONS IMPOSED BECAUSE OF ITS REFUSAL TO HAND OVER TWO LIBYAN AGENTS CHARGED WITH BLOWING UP THE PAN AM 103 JETLINER OVER SCOTLAND FIVE YEARS AGO IF THE WORLD COMMUNITY NEEDED ANY NEW MOTIVATION TO KEEP THE SCREWS TURNED ON LIBYA MR KIKHIA SHOULD PROVIDE IT THE US CAN MAKE IT CLEAR THAT IN ADDITION TO ACTION ON THE PAN AM 103 FRONT IT WANTS MR KIKHIA ACCOUNTED FOR BEFORE ANY EASING OF PRESSURE SECOND THE KIKHIA CASE IS A REMINDER THAT THE PRACTICE OF SIMPLY RUBBING OUT POLITICAL OPPONENTS ABROAD IS BECOMING DISTRESSINGLY COMMON IRAN DOES IT SYSTEMATICALLY AND NOW THERE IS A SIGNIFICANT CONCERN IN THE AMERICAN INTELLIGENCE COMMUNITY THAT IF GADHAFI GETS AWAY WITH THIS ONE HE HAS OTHER SCORES TO SETTLE AS WELL SAYS HENRY SCHULER A FRIEND OF THE KIKHIA FAMILY AND A LIBYA ANALYST AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE US HAS A PARTICULAR OBLIGATION TO ACT WHEN AMERICAN RESIDENTS ARE HURT BY THIS KIND OF LAWLESSNESS BUT IT SHOULD BE VOCAL EVEN IN CASES THAT HAVE NOTHING TO DO WITH AMERICANS CLINTON ADMINISTRATION FOREIGN POLICY IS BASED ON THE PREMISE THAT THE POSTCOLD WAR WORLD WILL BE MORE STABLE IF THE FAMILY OF DEMOCRACIES IS ENLARGED BUT DEMOCRACY WON'T EXPAND IF DEMOCRATIC VOICES CAN BE SNUFFED OUT THE KIKHIA ABDUCTION ALSO LEAVES A CLOUD HANGING OVER EGYPT SOME OF MR KIKHIA'S FRIENDS SUSPECT HE COULDN'T HAVE BEEN ABDUCTED UNLESS SOMEBODY IN THE EGYPTIAN SECURITY SERVICE AT LEAST LOOKED THE OTHER WAY EGYPTIAN OFFICIALS PASSIONATELY DISPUTE THAT THEY ARGUE THAT EGYPTIANS HAVE NO REASON TO TOLERATE TERRORISM AT A TIME WHEN TERRORIST ATTACKS ARE SCARING OFF MILLIONS OF BADLY NEEDED TOURIST DOLLARS FROM EGYPT EGYPT INSISTS IT IS DOING ALL IT CAN TO FIND MR KIKHIA INCLUDING PRESSING LIBYA BUT THE KIKHIA CASE OUGHT TO PROMPT EGYPT TO RECONSIDER THE SYMPATHETIC STANCE IT HAS TAKEN TOWARD LIBYA'S ACTIONS IN THE PAN AM 103 STANDOFF EGYPT'S STRATEGY IS TO PREVENT NEIGHBORING LIBYA FROM BECOMING EVEN MORE ISOLATED IT WORRIES THAT HARSHER ECONOMIC SANCTIONS ON LIBYA WOULD SEND THOUSANDS OF EGYPTIANS WHO NOW WORK THERE STREAMING HOME JOBLESS AND MANY EGYPTIANS FIGURE THAT BAD AS THE GADHAFI REGIME MAY BE IT COULD BE REPLACED BY SOMETHING WORSE PERHAPS A RADICAL ISLAMIC GOVERNMENT IF IT IS BROUGHT DOWN BUT UNDERSTANDABLE AS THOSE CONCERNS MAY BE AT SOME POINT THERE'S A PRICE TO BE PAID FOR ASSOCIATING WITH OUTLAWS 9401260170 940126 INTERNATIONAL PRODUCER PRICES RISE IN SPAIN MADRID SPAIN'S PRODUCER PRICE INDEX ROSE 32 IN NOVEMBER 1993 FROM A YEAR EARLIER THE NATIONAL STATISTICS INSTITUTE SAID PRICES OF CONSUMER GOODS IN NOVEMBER POSTED THE BIGGEST YEARONYEAR INCREASE SURGING 43 FROM NOVEMBER 1992 AND CLIMBING 02 IN NOVEMBER FROM OCTOBER OTHER MANUFACTURING INDUSTRIES SHOWED A JUMP OF 42 IN NOVEMBER FROM A YEAR EARLIER AND CLIMBED 04 IN NOVEMBER FROM OCTOBER 9401260169 940126 LETTERS TO THE EDITOR WHY WE MUST DRAW RACECONSCIOUS LINES IN RESPONSE TO YOUR JAN 10 EDITORIAL SEGREGATED AND UNEQUAL WHICH PRESENTS YOUR APPARENT OPPOSITION TO TAKING RACE INTO ACCOUNT IN SEEKING TO REMEDY RACIAL DISCRIMINATION IN VOTING YOU NOTE THAT I WITHDREW FROM CONSIDERATION FOR THE POSITION OF ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS AND ASSERT THAT I DECLINED TO STRONGLY SUPPORT THE CONTINUED DRAWING OF RACECONSCIOUS DISTRICTS VIRTUALLY THE SAME ASSERTION WAS MADE IN A DEC 27 EDITORIALPAGE PIECE BY CAROL SWAIN NEITHER YOUR EDITORIAL WRITER NOR MS SWAIN CONTACTED ME IF THEY HAD THEY WOULD HAVE LEARNED THAT I HOLD THE OPPOSITE VIEW I BELIEVE THAT RACECONSCIOUS REMEDIES ARE OFTEN NECESSARY TO REDRESS RACIAL DISCRIMINATION I HAVE DEFENDED MANY RACECONSCIOUS PROGRAMS DESIGNED TO REMEDY DISCRIMINATION INCLUDING RICHMOND'S PROGRAM IN THE SUPREME COURT IN RICHMOND V CROSON THIS IS ESPECIALLY THE CASE WITH RESPECT TO RACIAL DISCRIMINATION IN THE POLITICAL PROCESS WHERE A WELLDOCUMENTED AND OVERWHELMING HISTORY OF RACIAL DISCRIMINATION CAUSED CONGRESS TO ADOPT AND THEN TO EXTEND THE VOTING RIGHTS ACT THE ACT EXPLICITLY PROVIDES A REMEDY FOR MEMBERS OF RACIAL GROUPS THAT HAVE LESS OPPORTUNITY THAN OTHER MEMBERS OF THE ELECTORATE TO PARTICIPATE IN THE POLITICAL PROCESS AND TO ELECT REPRESENTATIVES OF THEIR CHOICE THE JURISDICTION YOU FOCUSED ON THE FOURTH CONGRESSIONAL DISTRICT OF LOUISIANA WAS DRAWN FOR THE SPECIFIC PURPOSE OF REMEDYING LOUISIANA'S LONGSTANDING EXCLUSION OF BLACK PEOPLE FROM THE POLITICAL PROCESS LOUISIANA HAS HAD A SUBSTANTIAL BLACK POPULATION FOR MORE THAN TWO CENTURIES AT PRESENT ITS POPULATION IS 30 BLACK NEVERTHELESS FROM RECONSTRUCTION TO 1990 MORE THAN 100 YEARS NO BLACK PERSON HAD BEEN ELECTED TO CONGRESS FROM LOUISIANA THE VOTING RIGHTS ACT WAS PASSED TO DEAL WITH PRECISELY THIS TYPE OF SITUATION AND BECAUSE OF ITS APPLICATION TWO OF THE SEVEN CONGRESSIONAL DISTRICTS IN LOUISIANA ARE NOW REPRESENTED BY BLACK PEOPLE WE ALL WISH FOR THE DAY WHEN RACE NO LONGER PLAYS THE PERNICIOUS ROLE THAT IT CONTINUES TO PLAY IN OUR SOCIETY THE CHALLENGE IS TO BRING THAT DAY CLOSER THE ONLY WAY TO ENSURE THAT IS TO USE ALL OF THE TOOLS AVAILABLE TO ELIMINATE THE EFFECTS OF RACIAL DISCRIMINATION IN OUR SOCIETY THE VOTING RIGHTS ACT IS SUCH A TOOL IT MUST BE VIGOROUSLY ENFORCED 9401260168 940126 WHILE PRESIDENTS COME AND GO SAME OLD FACES SIT ON THE AISLE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REMEMBER THOSE MEMBERS OF CONGRESS YOU SAW ON TV LAST NIGHT AFTER THE PRESIDENT'S STATE OF THE UNION SPEECH THE ONES ON THE AISLE JOSTLING TO SHAKE HIS HAND SOMEONE SHOULD HAVE CHECKED FOR CRUMBS HOURS BEFORE PRESIDENT CLINTON ARRIVED AT THE HOUSE OF REPRESENTATIVES CONGRESS'S HALFDOZEN OR SO LONGTIME STATE OF THE UNION GROUPIES WERE THERE A GROUP OF SENIOR CITIZENS STAKING OUT THE BEST SEATS AND SUSTAINING THEMSELVES ON COOKIES AND JUNK FOOD WE KEEP 'EM IN OUR POCKETS SO WE DON'T MESS UP THE PLACE SAYS COURTLY DEMOCRATIC REP SONNY MONTGOMERY OF MISSISSIPPI IT'S ANOTHER ONE OF THE MANY RITES OF CONGRESS FOR YEARS 27 IN REP MONTGOMERY'S CASE SOME OF THE SAME HOUSE FRIENDS HAVE ARRIVED EARLY TO CLAIM THE AISLE SEATS THAT PUT THEM IN GLADHANDING RANGE OF THE PRESIDENT HIS CABINET THE SUPREME COURT AND THE DIPLOMATIC CORPS THEY START SHOWING UP AT ABOUT 6 PM THREE HOURS BEFORE THE SPEECH BEGINS THEY WOULD BE THERE EARLIER BUT IN THESE SECURITYCONSCIOUS DAYS THEY WON'T LET US IN 'TIL AFTER THE BOMBSNIFFING DOGS LEAVE SAYS REP MONTGOMERY IT'S NOT THE MAJESTY OF THE MOMENT THAT DRAWS THEM IT ISN'T EVEN THE CERTAINTY OF GETTING ON NATIONAL TV THESE ARE SOME OF CONGRESS'S FEW PUBLICITYAVOIDERS AND LEST MR CLINTON THINK OTHERWISE IT'S NOT HIS PERSONAL CELEBRITY I DON'T SHOW UP FOR THE DEMOCRATIC PRESIDENT SAYS REPUBLICAN REP BOB STUMP OF ARIZONA I SHOW UP FOR THE OTHER GUYS AS FAR AS REP MONTGOMERY RECALLS 84YEAROLD REP BILL NATCHER OF KENTUCKY STARTED THE TRADITION SOMETIME AFTER HIS 1953 ELECTION REP MONTGOMERY 73 HAS BEEN ARRIVING EARLY SINCE HE WAS A FRESHMAN IN 1967 HE'S NOW A COMMITTEE CHAIRMAN BUT RANK HAS NO PRIVILEGES WHEN IT COMES TO SAVING A SEAT FOR THIS OCCASION A FEW FRESHMEN TRIED TO CUT CORNERS LAST NIGHT PUTTING PLACE CARDS TO RESERVE PRIME SEATS BUT REP MONTGOMERY WON'T DO THAT HE'S AFRAID HE'D FIND HIS SEAT GONE WHEN HE CAME BACK TO CLAIM IT REP MONTGOMERY ACKNOWLEDGES THAT EXCHANGES WITH PRESIDENTS DON'T GET MUCH BEYOND HELLO GLAD TO SEE YOU BUT LEAVE IT TO THE VOLUBLE GEORGE BUSH WHO'D BEEN ELECTED TO THE HOUSE THE SAME YEAR AS MR MONTGOMERY TO SAY SOMETHING MORE PROFOUND THERE YOU ARE SONNY MR BUSH SAID IN THE SAME OLD SEAT 9401260167 940126 BUSINESS BRIEF NORTHERN TELECOM'S FOURTHQUARTER NET DECLINED 59 LOSS IS POSTED FOR YEAR TORONTO NORTHERN TELECOM LTD CONTINUING TO RESTRUCTURE OPERATIONS IN THE FACE OF WEAK NORTH AMERICAN MARKETS REPORTED A STEEP DECLINE IN FOURTHQUARTER PROFIT AND SAID IT EXPECTS AN OPERATING LOSS IN THIS YEAR'S FIRST QUARTER FOURTHQUARTER PROFIT DROPPED 59 TO 106 MILLION OR 42 CENTS A SHARE FROM A YEAREARLIER 256 MILLION OR 102 A SHARE REVENUE FELL 31 TO 246 BILLION FROM 254 BILLION FOR THE FULL YEAR NORTHERN REPORTED A NET LOSS OF 878 MILLION OR 354 A SHARE WHICH INCLUDED 940 MILLION IN RESTRUCTURING CHARGES YEAREARLIER NET INCOME WAS 548 MILLION OR 217 A SHARE REVENUE FOR 1993 FELL 31 TO 815 BILLION FROM A YEAREARLIER 841 BILLION THE COMPANY'S CHIEF EXECUTIVE OFFICER JEAN MONTY WHO HAS ADOPTED AN AGGRESSIVE STANCE IN REVAMPING NORTHERN SINCE BEING NAMED IN 1993 TO RUN IT DESCRIBED THE YEAR'S FINANCIAL RESULTS AS DISAPPOINTING BUT EXPECTS TO RETURN THE COMPANY TO PROFITABILITY THIS YEAR HE NOTED THAT ALTHOUGH THE FOURTH QUARTER IS TRADITIONALLY NORTHERN TELECOM'S STRONGEST THE COMPANY WAS BURDENED BY LOWER MARGINS WEAK CANADIAN MARKETS AND THE EFFECTS OF A SIXMONTHOLD RESTRUCTURING WHICH INCLUDES A 158 MILLION SOFTWARE OVERHAUL NORTHERN HAS BEEN PLAGUED BY SOFTWARE PROBLEMS THAT LED TO DELAYS IN EQUIPMENT AND OTHER DELIVERIES TO PHONE COMPANIES AS A RESULT IT HAS CEDED US MARKET SHARE TO AMERICAN TELEPHONE & TELEGRAPH CO ITS MAIN RIVAL IN THE FIERCELY COMPETITIVE 6 BILLION US MARKET FOR DIGITAL SWITCHING SYSTEMS WE'VE BEEN BUILDING OUR MARGINS UP TO 36 IN THE FOURTH QUARTER UP FROM 31 IN THE SECOND QUARTER MR MONTY SAID IN AN INTERVIEW HE NOTED THAT THE COMPANY IN THE PAST HAS HAD MARGINS OF 39 TO 40 A BRIGHT SPOT FOR NORTHERN WAS ITS INTERNATIONAL BUSINESS WHICH CONTRIBUTED ABOUT 29 OF TOTAL REVENUE FOR THE YEAR UP FROM 26 IN 1992 HOWEVER GAINS IN EUROPE WERE MORE THAN OFFSET BY DECLINES IN CANADA AND OTHER INTERNATIONAL MARKETS RESPONDING TO REGULATORY CHANGES CANADIAN PHONE COMPANIES HAVE DECREASED THEIR CAPITAL EXPENDITURES FOR THE TYPE OF EQUIPMENT THAT NORTHERN MAKES MR MONTY SAID REVENUE IN THE US WAS FLAT FOR THE QUARTER NORTHERN EXPECTS DEMAND TO PICK UP IN US MARKETS THIS YEAR ALTHOUGH THE BIGGEST GROWTH AREAS ARE ASIAPACIFIC AND EUROPE THE CANADIAN MARKET WILL BE REASONABLY SOFT MR MONTY SAID NORTHERN WHICH CUT 2000 JOBS IN 1993 HAS SAID IT PLANS ANOTHER 4000 CUTS THIS YEAR AS PART OF ITS RESTRUCTURING 9401260166 940126 INTERNATIONAL SPAIN'S BIG BANKS CONTEST PROPOSAL FOR BANESTO RESCUE BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID THE CHAIRMEN OF SPAIN'S FIVE BIGGEST BANKS HUDDLED YESTERDAY AS A FIRST STEP TOWARD WORKING OUT A RESCUE PLAN FOR BANCO ESPANOL DE CREDITO BUT LEAKS FROM THE MEETING INDICATED THAT THE BANKS WEREN'T HAPPY WITH THE PROPOSAL GIVEN BECAUSE IT REQUIRES THEM TO SHOULDER MOST OF THE BURDEN FOR REFLOATING BANESTO PEOPLE IN THE INDUSTRY SAID BANESTO'S NEW CHAIRMAN ALFREDO SAENZ WHO PRESENTED THE PLAN WAS BELIEVED TO HAVE ASKED COMMERCIAL AND SAVINGS BANKS TO INJECT AS MUCH AS 350 BILLION PESETAS 245 BILLION INTO BANESTO THROUGH SPAIN'S DEPOSITGUARANTEE FUND THIS MONEY WOULD BE USED TO HELP MEET A FINANCIAL GAP AT BANESTO ESTIMATED TO STAND AT 605 BILLION PESETAS THE GUARANTEE FUND WHICH CURRENTLY HAS ABOUT 30 BILLION PESETAS WOULD ACQUIRE ASSETS FROM BANESTO INCLUDING NONPERFORMING LOANS REAL ESTATE AND INDUSTRIAL SHAREHOLDINGS FOR MORE THAN 150 BILLION PESETAS THEN THE FUND IS EXPECTED TO SUBSCRIBE TO A 200 BILLION PESETAS CAPITAL INCREASE THEREBY BECOMING BANESTO'S BIGGEST SHAREHOLDER ALSO SAID TO BE INCLUDED IN THE PLAN IS A TOTAL WRITEDOWN OF THE BANK'S RESERVES AND A REDUCTION IN THE NOMINAL VALUE OF ITS SHARES TO 500 PESETAS FROM 700 PESETAS EACH THAT WOULD LEAD TO A WRITEDOWN OF CAPITAL AND RESERVES OF ABOUT 275 BILLION PESETAS BANKS ALSO APPARENTLY OBJECTED TO MR SAENZ'S PLAN BECAUSE IT SPARES SHAREHOLDERS MOST OF THE BAILOUT PAIN THEY SAID THAT SEVERAL BANKS FAVORED WRITING OFF ALL OF THE BANK'S CAPITAL A MOVE THAT WOULD WIPE OUT THE VALUE OF ITS CURRENT SHARES ALTHOUGH IT IS UNCLEAR WHETHER THEY WILL PRESS FOR SUCH A DRASTIC SOLUTION THE BANKS RESENT BEING CALLED ON TO BAIL OUT A BANK THAT FAILED TO HEED THE ECONOMY'S WARNING SIGNALS AFTER 1989 WHILE OTHER BANKS WERE SCALING BACK LENDING IN ANTICIPATION OF TOUGH TIMES BANESTO SPAIN'S FOURTHLARGEST BANK ADOPTED AN EXPANSIONARY LOAN POLICY THAT CONTRIBUTED TO ITS CURRENT PROBLEMS THEY SAID BANKING SOURCES SAID A NEWS BLACKOUT WAS IMPOSED YESTERDAY TO EASE PRESSURE ON THE CHAIRMEN WHO ATTENDED THE MEETING THE ONLY OFFICIAL COMMENT CAME FROM THE SPANISH BANKING ASSOCIATION WHICH ANNOUNCED THAT CALCULATIONS OF BANESTO'S FINANCING NEEDS HAD BEEN REDUCED BY 70 BILLION PESETAS WHEN THE BANK OF SPAIN OUSTED BANESTO'S CHAIRMAN AND BOARD IN DECEMBER AS ITS FINANCIAL PLIGHT CAME TO LIGHT THE CENTRAL BANK ESTIMATED THAT BANESTO HAD A FINANCIAL SHORTFALL OF 503 BILLION PESETAS A FIGURE THAT WAS RAISED PROVISIONALLY LAST WEEK TO 675 BILLION PESETAS BY BANESTO'S NEW MANAGEMENT TEAM MR SAENZ IS EXPECTED TO MEET WITH THE CHAIRMEN OF SPAIN'S LEADING SAVINGS BANKS TOMORROW SO FAR SAVINGS BANKS HAVE PROVEN EVEN MORE RELUCTANT THAN COMMERCIAL BANKS TO PARTICIPATE IN A RESCUE PLAN FOR BANESTO THE CHAIRMAN OF THE CAIXA DE CATALUNYA SPAIN'S THIRDBIGGEST SAVINGS BANK TOLD THE SPANISH PRESS EARLIER THIS WEEK THAT THE MOST LOGICAL THING WOULD BE FOR BANESTO TO CLOSE ITS DOORS GIVEN THE LOSS OF VALUE THAT IT'S ASSETS HAVE SUFFERED 9401260165 940126 INTERNATIONAL LONRHO BOARD IS LOSING ALLIES OF ROWLAND BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LONRHO PLC ANNOUNCED CHANGES IN ITS BOARD A SIGN THAT INVESTOR DIETER BOCK MAY BE WINNING HIS POWER STRUGGLE WITH HIS COCHIEF EXECUTIVE ROLAND W TINY ROWLAND THE DIVERSIFIED MULTINATIONAL COMPANY SAID ITS CHAIRMAN RENE LECLEZIO AND THREE OTHER DIRECTORS CLOSELY ALLIED WITH MR ROWLAND ARE RETIRING AND THAT THE BOARD APPOINTED THREE NONEXECUTIVE DIRECTORS MR LECLEZIO'S SUCCESSOR WASN'T NAMED MR BOCK WHO BECAME COCHIEF EXECUTIVE AND THE COMPANY'S LARGEST SHAREHOLDER WHEN HE BOUGHT AN 18 STAKE MORE THAN A YEAR AGO HAS BEEN AGITATING FOR BOARDROOM CHANGE MR BOCK WANTS TO PARE LONRHO AN AMALGAMATION OF 700 COMPANIES IN 60 COUNTRIES WITH INTERESTS IN MINING AGRICULTURE HOTELS PIPELINES PUBLISHING AND AUTOMOBILES TO THREE CORE BUSINESSES MR ROWLAND WHO HAS LED THE COMPANY FOR 32 YEARS WANTS LONRHO TO STAY MUCH AS IT IS THE CHANGES LEAVE OPEN THE FATE OF MR ROWLAND A FLAMBOYANT INTERNATIONAL FIGURE WHO BUILT LONRHO FROM A TINY MINING COMPANY IN COLONIAL RHODESIA MR ROWLAND 76 YEARS OLD IS A LIKELY CHOICE TO BECOME CHAIRMAN THE POST WOULD ALLOW HIM TO ENGAGE IN HIS PASSION ROAMING THE GLOBE IN SEARCH OF NEW BUSINESS OPPORTUNITIES WHILE LEAVING DAYTODAY OPERATIONS TO SOMEONE ELSE MR LECLEZIO OVERSAW LONRHO FROM HIS RANCH IN MAURITIUS FOR THE TWO YEARS HE WAS CHAIRMAN LONRHO ALSO REPORTED THAT PRETAX EARNINGS BUOYED BY ASSET SALES GREW 51 IN THE FISCAL YEAR ENDED SEPT 30 TO 172 MILLION 2571 MILLION OR 151 PENCE 23 CENTS A SHARE THE COMPANY SAID SALES TOTALED 270 BILLION IN THE FISCAL YEAR IN FISCAL 1992 ADJUSTED FOR NEW ACCOUNTING RULES LONRHO'S PRETAX PROFIT STOOD AT 114 MILLION OR 66 PENCE A SHARE ON SALES OF 393 BILLION ASSET SALES ADDED 87 MILLION TO LONRHO'S 1993 PRETAX PROFIT THE LATEST RESULTS WERE LARGELY IN LINE WITH ANALYSTS' EXPECTATIONS LONRHO'S DEBT RATIO WAS MUCH IMPROVED AT 31 OF EQUITY DOWN FROM 57 A YEAR AGO LONRHO'S DEBT PROBLEMS LED MR ROWLAND TO TURN TO MR BOCK FOR A CASH INFUSION IN DECEMBER 1992 MR BOCK IS SAID TO BE CONSIDERING SELLING OFF MORE THAN 1 BILLION IN LONRHO ASSETS FROM ITS ROLLSROYCE DEALERSHIPS TO POSTAGE PRINTING PLANTS MR BOCK HAS SAID LONRHO SHOULD FOCUS ON THREE CORE BUSINESES MINING AGRICULTURE AND HOTELS IN A STATEMENT TO SHAREHOLDERS MR LECLEZIO SEEMED TO SIGNAL THAT THE REST OF LONRHO'S BOARD AGREES YOUR COMPANY WILL CONCENTRATE ON THESE CENTRAL BUSINESSES WHILST PREPARING TO DISPOSE OF OTHER ASSETS SENSIBLY AS OPPORTUNITIES ARISE THE NEW OUTSIDE DIRECTORS ARE SIR JOHN LEAHY A FORMER BRITISH AMBASSADOR TO SOUTH AFRICA WHERE LONRHO HAS MINING INTERESTS PETER HARPER A DIRECTOR OF HANSON PLC AND STEPHEN WALLS CHAIRMAN OF ALBERT FISHER GROUP PLC MEANWHILE FROM WITHIN LONRHO TERRENCE WILKINSON JOINS THE BOARD AS AN EXECUTIVE DIRECTOR HE HAS BEEN DEVELOPING LONRHO'S PLATINUM MINES IN SOUTH AFRICA 9401260164 940126 INTERNATIONAL JAPAN HOUSEHOLD SPENDING RISES TOKYO JAPAN'S HOUSEHOLD SPENDING IN NOVEMBER WAS 318428 YEN 285311 AVERAGE UP 14 FROM A YEAR EARLIER IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE SAID REAL HOUSEHOLD SPENDING TAKES INTO ACCOUNT INFLATION HOUSEHOLD SPENDING MARKED A YEARONYEAR RISE FOR THE SECOND MONTH IN A ROW IN OCTOBER HOUSEHOLD SPENDING ROSE 04 THE FIRST YEARONYEAR RISE IN SIX MONTHS 9401260163 940126 TECHNOLOGY & HEALTH SOME DOCTORS URGING FDA TO WITHDRAW APPROVAL OF ABBOTT'S ANESTHETIC LOLLIPOP BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL DOCTORS ARE URGING THE FOOD AND DRUG ADMINISTRATION TO WITHDRAW APPROVAL OF A NARCOTIC LOLLIPOP GIVEN TO CHILDREN ENTERING SURGERY THAT MAY CAUSE NAUSEA AND SEVERE BREATHING DIFFICULTIES IN LETTERS THIS WEEK TO FDA COMMISSIONER DAVID KESSLER SOME ANESTHESIOLOGISTS AND OTHER PHYSICIANS EXPRESSED CONCERNS THE LOLLIPOP COULD LEAD TO DEATHS IF PROPERLY TRAINED HOSPITAL PERSONNEL AREN'T PRESENT WHEN IT'S ADMINISTERED THE LOLLIPOP CONTAINS FENTANYL AN OPIUMLIKE SEDATIVE AND PAINKILLER THAT IS FAR MORE POTENT THAN MORPHINE ABBOTT LABORATORIES OF NORTH CHICAGO ILL HAS THE MARKETING RIGHTS FOR THE LOLLIPOP UNDER LICENSE FROM ANESTA CORP OF SALT LAKE CITY AN ABBOTT SPOKESWOMAN SAID THE CRITICISMS OF THE PRODUCT WERE RAISED AT THE TIME THE FDA APPROVED THE LOLLIPOP IN OCTOBER AND THAT IT WILL BE SOLD TO HOSPITALS OR PHYSICIANS WITH STRICT LIMITATIONS ON ITS USE BECAUSE THE DRUG CAN SLOW OR EVEN STOP A PATIENT'S BREATHING A PRODUCT WARNING LABEL SAYS THE LOLLIPOP SHOULD BE ADMINISTERED ONLY IN MONITORED SETTINGS AND BY PERSONS SPECIFICALLY TRAINED IN THE USE OF ANESTHETIC DRUGS THE CANDY IS DESIGNED FOR CHILDREN WHO CAN'T OTHERWISE BE CALMED DOWN BEFORE BEING GIVEN AN ANESTHETIC BY INJECTION WITHOUT A HIGH LEVEL OF VIGILANCE I AM CONCERNED THAT THE OUTCOME COULD BE TRAGIC ALLEN J HINKLE A DARTMOUTH MEDICAL SCHOOL ANESTHESIOLOGY PROFESSOR WROTE FDA COMMISSIONER DAVID KESSLER I DO NOT BELIEVE THE FENTANYL LOLLIPOP HAS ANY BENEFITS ESPECIALLY WHEN WE BEGIN TO LOOK AT THE PATIENT SAFETY RISK JAMES F ARENS VICE PRESIDENT FOR CLINICAL AFFAIRS AT THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON TERMED THE LOLLIPOP A CUTE SOLUTION TO A NONPROBLEM AND A TRULY DANGEROUS PRODUCT BY CONTRAST MYRON YASTER DIRECTOR OF THE PEDIATRIC PAIN SERVICE AT THE JOHNS HOPKINS HOSPITAL SAID IN AN INTERVIEW THAT THE LOLLIPOP FILLS A NICHE THAT NEEDED TO BE FILLED IT'S A WAY TO HELP STOP PAIN WITHOUT INFLICTING PAIN FENTANYL WHEN USED IN PATCHES FOR CHRONIC CANCER AND OTHER PAIN HAS BEEN ASSOCIATED WITH MORE THAN 50 DEATHS REPORTED TO THE FDA AN FDA SPOKESMAN SAID THE DEATHS WERE CAUSED BY ABUSE OF THE PATCH EXCESSIVE DOSING OR THE CANCER ITSELF NEVERTHELESS THE SPOKESMAN SAID THE AGENCY WILL CONSIDER WHETHER THE APPROVAL OF THE LOLLIPOP SHOULD BE REVERSED THE LOLLIPOP HASN'T YET BEEN MARKETED AND THE FDA CURRENTLY IS DISCUSSING WITH ABBOTT HOW THE DELIVERY AND USE OF THE PRODUCT WILL BE CONTROLLED CITING THE DEATHS ASSOCIATED WITH FENTANYL IN PATCH FORM SIDNEY WOLFE DIRECTOR OF THE CONSUMERORIENTED PUBLIC CITIZEN HEALTH RESEARCH GROUP CALLED THE FDA'S APPROVAL OF THE LOLLIPOP DANGEROUS AND ILLCONCEIVED AND CALLED ON DR KESSLER TO REVERSE THE MARKETING APPROVAL DR WOLFE SAID THAT IN ONE USE OF THE FENTANYL PATCH A 17YEAROLD FLORIDA BOY WENT TO AN ORAL SURGEON HAD A TOOTH EXTRACTED AND DIED AFTER BEING GIVEN THE PRODUCT FOR POSTOPERATIVE PAIN DOCTORS HAVE RAISED OTHER CONCERNS ABOUT THE LOLLIPOP SUCH AS THE NAUSEA SOMETIMES ASSOCIATED WITH FENTANYL AND THE POSSIBILITY THAT THE LOLLIPOPS COULD BE OBTAINED BY DRUG ABUSERS THROUGH ILLEGAL MEANS DR HINKLE NOTED IN HIS LETTER TO DR KESSLER THAT ANESTHESIA IN A CHILD WHO IS VOMITING INCREASES THE RISK OF THE ENTIRE PROCEDURE TREATING ANXIETY BY INDUCING VOMITING IN CHILDREN SEEMS COUNTERPRODUCTIVE TO ME DR HINKLE WROTE 9401260162 940126 TECHNOLOGY & HEALTH MERCK NET RISES WARNERLAMBERT REPORTS A DEFICIT BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PHARMACEUTICAL MAKER MERCK & CO REPORTED HIGHER SALES AND EARNINGS FOR THE FOURTH QUARTER WHILE WARNERLAMBERT CO POSTED A LOSS THAT INCLUDED A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE THE RESULTS WERE WITHIN EXPECTATIONS SOOTHING INVESTORS WHO HAD FEARED WORSE MERCK SHARES ROSE 1 TO 3575 WARNERLAMBERT ADDED 125 CENTS TO END AT 64625 BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERCK POSTED AN 11 INCREASE IN NET INCOME TO 6742 MILLION OR 56 CENTS A SHARE FROM 6091 MILLION OR 53 CENTS A SHARE SALES ROSE 15 TO 3 BILLION FROM 26 BILLION THE QUARTERLY RESULTS INCLUDE THE EFFECT OF THE MEDCO CONTAINMENT SERVICES INC ACQUISITION IN NOVEMBER FOR THE YEAR THE WHITEHOUSE STATION NJ COMPANY'S EARNINGS ROSE 92 TO 217 BILLION OR 187 A SHARE FROM 198 BILLION OR 172 A SHARE SALES ROSE 86 TO 105 BILLION FROM 966 BILLION THE YEARLY RESULTS INCLUDE MEDCO THE SALE OF CALGON WATER MANAGEMENT DIVISION AND A RESTRUCTURING CHARGE IN 1993 AND ACCOUNTING CHANGES IN 1992 CONTINUING OPERATIONS ARE DOING WELL AND THAT'S A GOOD SIGN SAID JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORP SALES PARTICULARLY IN THE US WERE STRONGER THAN EXPECTED HE ASSERTED WARNERLAMBERT REPORTED A QUARTERLY NET LOSS OF 1969 MILLION OR 146 A SHARE COMPARED WITH NET INCOME OF 1376 MILLION OR 102 A SHARE A YEAR AGO SALES ROSE 4 TO 153 BILLION FROM 147 BILLION THE MORRIS PLAINS NJ COMPANY'S YEARLY PROFIT DECLINED 49 TO 331 MILLION OR 245 A SHARE FROM 6437 MILLION OR 478 A SHARE SALES GREW 35 TO 579 BILLION FROM 56 BILLION THE QUARTER INCLUDED A 131 MILLION GAIN ON THE SALE OF ITS CHOCOLATE/CARAMEL BUSINESS AND A 4683 MILLION RESTRUCTURING CHARGE IN ADDITION THE YEAR INCLUDED A 70 MILLION CHARGE FOR THE DISPOSITION OF THE NOVON PRODUCTS GROUP AND ACCOUNTING CHANGES 9401260161 940126 RAY OF HOPE AMID AFRICA'S AGONY ONE NATION GHANA SHOWS MODEST GAINS YET PROGRESS IS VERY SLOW PERHAPS IN PART BECAUSE LITERACY RATE STAYS LOW A CONTRAST WITH MALAYSIA BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL DANOHIRA GHANA ALONG THE REDDIRT ROAD RUNNING BESIDE THIS MUDHUT VILLAGE THE MAIN ECONOMIC INDICATOR IS THE FREQUENCY OF MAMMY TRUCKS THAT RATTLE BY TO CARRY LOCAL FARMERS AND THEIR PRODUCE TO THE NEARBY TOWN OF KASUA AS CHARLE AYIETEY READS THAT INDICATOR THINGS AREN'T GOING WELL WE USED TO FIND A BIG TRUCK ONCE A DAY THE SLIGHT MIDDLEAGED FARMER SAYS BUT A STRAPPED GOVERNMENT HAS CUT BACK ON MAINTENANCE AND THIS ROAD LIKE THOUSANDS OF OTHERS HAS BECOME AN AXLEBENDING ROLLER COASTER OF GULLETS AND DITCHES AS A RESULT THE TRUCKS ONLY COME ONCE A WEEK TODAY IS MONDAY HE SAYS THEY'LL COME TODAY HE WILL RIDE TO TOWN WITH HIS TOMATOES AND CASSAVAS SIT ALL NIGHT WITH HIS PRODUCE BESIDE THE ROAD AND SELL IT THE NEXT DAY THIS IS THE FOOTPATH ECONOMY OF RURAL GHANA A NATION THAT DEVELOPMENT SPECIALISTS SAY IS THE NEAREST THING TO AN ECONOMIC SUCCESS STORY IN BLACK AFRICA DURING THE PAST DECADE MARKETBASED ECONOMIC REFORMS HAVE BROUGHT REMARKABLE TRANSFORMATIONS IN EVERY OTHER REGION FROM CHILE TO THE CZECH REPUBLIC TO CHINA COUNTRIES HAVE USED ADAM SMITH'S FORMULAS TO REVIVE ECONOMIES PREVIOUSLY RENDERED MORIBUND BY GOVERNMENT CONTROLS BUT THIS ECONOMIC REVOLUTION AND ITS PAYOFF OF HIGHER LIVING STANDARDS HAVE LARGELY ELUDED SUBSAHARAN AFRICA WHERE THE NUMBER OF POOR PEOPLE IS EXPECTED TO INCREASE IN THE NEXT DECADE AT BEST THERE IS GHANA ON THE SOUTHERN COAST OF THE BULGE OF WEST AFRICA THIS COUNTRY HAS TRIED FOR 10 YEARS IT HAS WON PRAISE AND HARD CASH BY GENERALLY FOLLOWING THE DICTATES OF THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK EXCHANGE RATES HAVE BEEN REALIGNED TRIPLEDIGIT INFLATION HAS BEEN TAMED TO ROUGHLY 20 A YEAR AND SIGNS OF PROGRESS HAVE CROPPED UP A FIVESTAR HOTEL STANDS OUTSIDE ACCRA THE CAPITAL AND A FEW INTERNATIONAL BUSINESSPEOPLE CHAT ON CORDLESS TELEPHONES ABOUT JOINT VENTURES AND PRIVATIZATIONS FINANCE MINISTER KWESI BOTCHWEY EVEN HOLDS OUT THE PROSPECT THAT GHANA WHICH IN 1957 BECAME THE FIRST BLACK AFRICAN STATE TO WIN ITS INDEPENDENCE FROM A EUROPEAN COUNTRY WILL ALSO PIONEER THE FIRST ASIANSTYLE ECONOMIC MIRACLE ON THE CONTINENT BUT GHANA'S ECONOMIC ASCENT IS AGONIZINGLY SLOW THE AVERAGE CITIZEN SCRAPES BY ON THE EQUIVALENT OF ABOUT 420 A YEAR THE RURAL POPULATION STRUGGLES NOT ONLY WITH BAD ROADS BUT ALSO WITH UNDERFUNDED SCHOOLS AND MALARIA ADJUSTED FOR GALLOPING POPULATION GROWTH THE GHANAIAN ECONOMY EXPANDS 2 PER PERSON EACH YEAR A BARELY NOTICEABLE INCREASE AT THE BOTTOM RUNGS OF SOCIETY AND GHANAIANS WONDER WHY THEY UNLIKE MANY DEVELOPING NATIONS CAN'T REAP THE FRUITS OF ECONOMIC SUCCESS AFRICA HAS BEEN A TERRIBLE STORY SAYS SIR WILLIAM RYRIE WHO RECENTLY RETIRED AS HEAD OF THE INTERNATIONAL FINANCE CORP THE PRIVATESECTOR ARM OF THE WORLD BANK AGAINST THIS DISCOURAGING BACKDROP ECONOMISTS HAVE INVESTED CONSIDERABLE HOPE THAT GHANA'S HALTING PROGRESS CAN BECOME A CLEAR SUCCESS SHOWING THE WAY TO OTHER STAGNANT OR UNSTABLE AFRICAN STATES GHANA'S EXPERIENCE STANDS IN CONTRAST TO THAT OF MALAYSIA WHICH ALSO BECAME INDEPENDENT FROM BRITAIN IN 1957 BOTH FORMER COLONIES BEGAN WITH BRITISH INSTITUTIONS A RICH MIX OF RESOURCES FOREIGNCURRENCY RESERVES AND ANNUAL PERCAPITA INCOME OF ABOUT 750 BUT 3 1/2 DECADES LATER MALAYSIA IS FAR AHEAD ITS AVERAGE CITIZEN EARNS ABOUT 2500 A YEAR NEARLY SIX TIMES THE AMOUNT IN GHANA FOREIGN INVESTORS ARE RARE IN GHANA BUT ARE POURING INTO MALAYSIA THE REASONS FOR THIS DIVERGENCE IN DEVELOPMENT ARE COMPLEX BUT THEY CLEARLY GO BEYOND THE REACH OF THE IMF'S MACROECONOMIC FIXES ONE STARK DIFFERENCE BETWEEN GHANA AND MALAYSIA LIES IN THEIR APPROACHES TO INVESTMENT IN EDUCATION AND HEALTH GHANA HAS USED ITS RESOURCES TO RUN THREE PRESTIGIOUS UNIVERSITIES AND PRODUCE A TALENTED ELITE BUT MALAYSIA LIKE SOUTH KOREA BEFORE IT POURED ITS EARLY MONEY INTO PRIMARY EDUCATION TODAY 80 OF MALAYSIA'S ADULT POPULATION CAN READ AND WRITE WHILE GHANA HAS AN OFFICIAL LITERACY RATE OF 60 AND LOCAL OFFICIALS PUT THE FUNCTIONAL LITERACY RATE CLOSER TO 40 ILLITERACY KEEPS FARMERS FROM LEARNING NEW GROWING METHODS AND A LARGER SLICE OF THE POPULATION FROM WORKING IN EXPORTORIENTED MANUFACTURING NO COUNTRY HAS BEEN SUCCESSFUL ECONOMICALLY WITH LESS THAN 50 LITERACY SAYS KATHERINE MARSHALL A WORLD BANK AFRICA SPECIALIST WHOSE GRANDFATHER GEORGE C MARSHALL MOUNTED THE RAPID RECONSTRUCTION OF POSTWAR EUROPE IN MATSEKOPE A GHANAIAN HAMLET THAT MAINLY PRODUCES SACKS OF SALT FROM A LAGOON THE PRIMARY SCHOOL CONSISTS OF TWO DILAPIDATED SHEDS WITH GAPING HOLES IN THE ROOFS NOT ALL THE CLASSROOMS HAVE BLACKBOARDS ENOUGH DESKS OR EVEN TEACHERS IN ONE ROOM DAVID APPRONTI A STERNFACED NINEYEAROLD LEADS 47 CHILDREN IN SONG OUTSIDE UNDER A SHADE TREE JAMES OSEI KOFI A VISITING OFFICIAL FROM THE EDUCATION MINISTRY TELLS THE TEACHERS NOT TO EXPECT MUCH HELP FROM THE CAPITAL HIS WARNING THAT TIMES ARE HARD YOU'VE GOT TO ORGANIZE YOURSELVES ELICITS SNICKERS ONE TEACHER ASKS FOR A SMALL LIBRARY AT THE SCHOOL WHICH SERVES 264 CHILDREN YOU'RE JUST DREAMING MR KOFI RESPONDS ANOTHER TEACHER ASKS ABOUT PROSPECTS FOR HIGHER PAY NOW RUNNING ABOUT 600 A YEAR MR KOFI SHAKES HIS HEAD IN LIEU OF A RAISE HE SUGGESTS THE GOVERNMENT MIGHT DECLARE A NATIONAL TEACHERS' DAY AND AWARD BICYCLES TO ESPECIALLY DEDICATED ONES IT MUST BE CASH THE TEACHER RESPONDS A TEST OF 12000 STUDENTS HERE BY THE US AGENCY FOR INTERNATIONAL DEVELOPMENT LAST YEAR FOUND THAT FEWER THAN 2 READ AT LEVELS THE AID OFFICIALS HAD EXPECTED AND THAT HALF COULDN'T READ AT ALL DESPITE 225 MILLION THAT INDUSTRIALWORLD DONORS POURED INTO GHANA'S EDUCATION FROM 1988 THROUGH 1993 AND OF 64000 PRIMARYSCHOOL TEACHERS HALF HADN'T HAD ANY TEACHER TRAINING ABOUT 16000 HADN'T FINISHED HIGH SCHOOL SOME AN AID OFFICIAL ADDS CAN'T EVEN WRITE THEIR NAMES GHANA AND MALAYSIA ALSO PROVIDE A TELLING CONTRAST IN HEALTH CARE WHILE GHANA BUILT SEVERAL URBAN HOSPITALS MALAYSIA SET UP SMALL CLINICS TO DELIVER BASIC CARE AND IMMUNIZATIONS GHANA HAS ONE PHYSICIAN FOR EVERY 22970 CITIZENS MALAYSIA HAS ONE FOR EVERY 2700 A CHILD IN GHANA CAN EXPECT TO LIVE TO AGE 55 A MALAYSIAN'S LIFE EXPECTANCY IS 71 YEARS AT TIMES THE SHEER BURDEN OF CULTURE SEEMS TO IMPEDE CREATION OF A THRIVING PRIVATE SECTOR GHANAIANS ARE INVETERATE TRADERS BUT HESITANT PRODUCERS IN ACCRA'S SHANTYTOWNS THE POOR EKE OUT A LIVING SELLING EVERYTHING FROM HUBCAPS TO HAIRDOS EVERY TRAFFIC LIGHT IS THRONGED BY HAWKERS OF A CURIOUS ARRAY OF CHINESEMADE PRODUCTS PLASTIC COAT HANGERS DOG COLLARS IMITATION CHRISTIAN DIOR DEODORANT AND GLUE AT TOLL STATIONS JUST OUTSIDE THE CAPITAL LITTLE GIRLS SELL PUPPIES AND PLASTIC BAGS OF COOL WATER BUT APART FROM THE TRADITIONAL EXPORTS OF GOLD AND COCOA GHANAIANS DON'T PRODUCE MUCH AND DESPITE A DECADE OF ECONOMIC LIBERALIZATION UNDER DICTATORTURNEDPRESIDENT JERRY RAWLINGS THE HABIT OF STATE CONTROL CLEARLY LINGERS ON FROM HIS EARLY ALLEGIANCE TO SOCIALIST LEADERS IN OTHER NATIONS AND TO SOCIALISM ITSELF EVEN NOW RIGID STATE CONTROL SHOWS UP ON DOZENS OF HALFBUILT STRUCTURES WITH THE BUREAUCRATIC COMMAND EMBLAZONED IN RED PAINT STOP WORK PRODUCE PERMIT STATUTES IMPOSE STIFF PENALTIES ON ANYONE CARRYING OUT ANY ACT WITH INTENT TO SABOTAGE THE ECONOMY A VAGUE PROHIBITION THAT BUSINESSPEOPLE SAY LETS THE GOVERNMENT HARASS THEM CYNTHIA AGYEKUM WHO FOUNDED CESSA LTD A TEXTILE CONCERN IS A TESTAMENT TO BOTH THE ENERGY AND THE DIFFICULTIES OF THE COUNTRY'S BUSINESSPEOPLE TAUGHT AS A CHILD TO SEW SHE BEGAN STITCHING TOGETHER ACCESSORIES SUCH AS BELTS AND SATCHELS FROM KENTE CLOTH AND DYED FABRIC AFTER SELLING HER WARES THROUGH TRADE SHOWS AND OCCASIONAL CONTACTS WITH US RETAILERS MS AGYEKUM GOT A BREAK ADRIAN LONG SENIOR VICE PRESIDENT AT PIER 1 IMPORTS INC SHOWED UP EARLY LAST YEAR AND WAS SO IMPRESSED WITH HER DESIGNS AND WORKMANSHIP THAT HE ORDERED 17000 PIECES THE MOTHER OF THREE YOUNG CHILDREN MANAGED TO SET UP A LEASE FOR A DEFUNCT BOARDEDUP TEXTILE PLANT ITS SEWING MACHINES COULD BE REFURBISHED AND MANY OF ITS FORMER WORKERS WHO HADN'T HELD REGULAR JOBS SINCE IT CLOSED 12 YEARS EARLIER WERE EAGER TO SIGN ON BUT MS AGYEKUM NEEDED MONEY TO GET STARTED A GOVERNMENTESTABLISHED EXPORT FINANCE COMPANY TOLD HER IT HAD NO FUNDS TO LEND GHANAIAN BANKS STILL UNDER STATE CONTROL WEREN'T USED TO FINANCING LOCAL BUSINESSES BESIDES PIER 1'S ORDER MEANT NOTHING TO THEM THEY HAD NEVER HEARD OF THE BIG RETAILER INFORMAL MONEYLENDERS DEMANDED TERMS SHE CONSIDERED CONFISCATORY 5 INTEREST EVERY TWO WEEKS ABOUT TO GIVE UP SHE MET WITH LENDERS FROM CONTINENTAL ACCEPTANCES LTD A GHANAIAN MERCHANT BANK THAT WAS BEGINNING TO OPEN UP TO NEW BUSINESSES AFTER AN INVESTMENT BY THE INTERNATIONAL FINANCE CORP AFTER MUCH NEGOTIATION CONTINENTAL PROVIDED THE FINANCING FOR MS AGYEKUM TO REOPEN THE PLANT AND HIRE WORKERS THEN A POWER BLACKOUT LEFT THE AREA WITHOUT ELECTRICITY FOR FOUR DAYS RATHER THAN RISK MISSING A SHIPMENT DATE MS AGYEKUM ADDED A SECOND SHIFT AS SOON AS ELECTRICITY WAS RESTORED IT'S AN UPHILL STRUGGLE SHE SAYS BUT GHANAIANS ARE USED TO FIGHTING UPHILL STRUGGLES PIER 1'S MR LONG SAYS THAT WHILE MS AGYEKUM SURMOUNTED THE PROBLEMS OTHER GHANAIAN ARTISANS WITH WHOM HE LEFT ORDERS BACKED OUT BECAUSE OF THE LACK OF FINANCING THE BOTTOM LINE IS EVERYBODY'S TRYING BUT WE WON'T GET ALL WE EXPECTED HE SAYS HOWEVER THERE ARE OTHER SIGNS OF HOPE JUST BEYOND FOTOBI A VILLAGE OF MUD HUTS MEANDERING GOATS AND NAKED CHILDREN DANIEL SAFO SURVEYS HIS PINEAPPLE PLANTATION ABOUT 60 WORKERS SCRAMBLE UP AND DOWN HILLY ROWS OF THE PLANTS WHICH STRETCH TOWARD THE HORIZON AND CUT RIPE PINEAPPLES WITH MACHETES THEN THEY PUT THE FRUIT INTO TUBS THAT VILLAGE WOMEN CARRY ON THEIR HEADS TO A TRUCK REVVING ITS ENGINE FOR A LATEAFTERNOON RUN TO ACCRA'S AIRPORT THE NEXT MORNING THE PINEAPPLES CONSIDERED EXCEPTIONALLY TENDER AND SWEET WILL BE UNLOADED IN ZURICH THIS GUY COULD BE SITTING ON A GOLD MINE SAYS DAVID LEGRICE A WORLD BANK CONSULTANT ADVISING MR SAFO'S COMPANY COMBINED FARMERS LTD THE WORKERS EARN 1 A DAY THE GROWING CYCLE IS HALF THAT OF FARMS FARTHER FROM THE EQUATOR AND FEW PESTICIDES AND FERTILIZERS ARE NEEDED IF YOU LOOK AT THE REST OF AFRICA OTHER THAN SOUTH AFRICA THIS COUNTRY'S GOT THE BEST POTENTIAL HE ADDS ANOTHER NEW EXPORT IS SHRIMP OVER COCKTAILS AT A WESTERN DIPLOMAT'S HOME IN ACCRA AN AQUATIC CONSULTANT EXPLAINS TO LOCAL BUSINESS LEADERS AND AN AMERICAN VENTURE CAPITALIST HOW TO SPEED UP A FEMALE SHRIMP'S REPRODUCTIVE CYCLE AND WHY THE ESTUARY SOUTH OF THE VOLTA RIVER DAM IS IDEAL FOR SHRIMP FARMING BEN ADDAI AN ASHANTI TRIBAL LEADER WHO OWNS A SHRIMPING FLEET SAYS HE MAY EXPAND INTO SHRIMP FARMING AS WELL OVERALL HE SAYS IF WE'RE GOING TO MAKE IT IT'S GOING TO BE ON EXPORT PERFORMANCE AND THOUGH BUSINESS DEVELOPMENT IS SLOW THE AVERAGE GHANAIAN IS BETTER OFF THAN 10 YEARS AGO WHEN AFTER TWO DECADES OF COUPS CORRUPTION AND DISASTROUS ECONOMIC CONTROLS THE ECONOMY IMPLODED INFLATION SURGED TO 123 BASIC GOVERNMENT SERVICES BROKE DOWN AND FUEL AND FOOD SHORTAGES BECAME SO ACUTE THAT EVEN CIVIL SERVANTS WENT HUNGRY MOREOVER GHANA'S CURRENT PROBLEMS PALE NEXT TO THOSE IN COUNTRIES LIKE SOMALIA BURUNDI OR ANGOLA THAT ARE PLAGUED WITH FACTIONAL KILLING AND WIDESPREAD STARVATION OPTIMISTS BELIEVE THAT SUBSAHARAN ECONOMIES MAY EVENTUALLY PICK UP THEY NOTE THAT THE REGION'S ECONOMIC PROFILE TODAY IS REMARKABLY SIMILAR TO THAT OF INDONESIA THAILAND AND MALAYSIA IN 1965 IN 25 YEARS THEY SAY AFRICA MAY BOAST A FEW ECONOMIC MIRACLES FOR GHANA SUSPENDED SOMEWHERE BETWEEN THE AFRICAN ECONOMIC NIGHTMARE AND A HOPEDFOR ASIANSTYLE PROSPERITY IT IS A LONG WAIT FOR THE AVERAGE GHANAIAN IT'S BEEN A HARDSHIP SAYS 74YEAROLD ESTHER OCLOO WHOSE FOODPROCESSING COMPANY NKULENU INDUSTRIES LTD IS ONE OF A HANDFUL OF PRIVATE CONCERNS THAT HAVE SURVIVED SINCE PREINDEPENDENCE DAYS THE ONLY PRAYER AND HOPE IS THAT IT'S SUSTAINABLE BECAUSE IF IT'S NOT THE VERY SOULS OF THE PEOPLE WILL BE CRYING 9401260160 940126 ENERGY WITH OIL PRICES DOWN WHO NEEDS ALTERNATIVE ENERGY BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL TULLY NY UTILITIES RESEARCHERS STILL BEAT THEIR DRUMS FOR CLEAN RENEWABLE ENERGY SOURCES BUT THE VOICES OF THEIR COSTCONSCIOUS COLLEAGUES ARE GROWING LOUDER THE STEEP DROP IN CRUDE OIL PRICES 25 SINCE NOVEMBER AND SLOWGROWING DEMAND FOR ELECTRICITY HAVE MADE THE FUTURISTIC WORLD OF BIOFUELS PHOTOVOLTAIC CELLS AND HIGHTECH WIND TURBINES SEEM LESS RELEVANT AS A RESULT THE SCIENTISTS WHO WERE HIRED TO CLEAN UP UTILITIES' SMOKESTACKS ARE FEELING THE HEAT THEMSELVES EDWARD F NEUHAUSER SENIOR RESEARCH SPECIALIST FOR NIAGARA MOHAWK POWER CORP AND HIS PEERS ARE THE INDUSTRY'S IDEALISTS THE GREENTHINKING INTELLECTUALS WHO WERE BROUGHT IN OFTEN GRUDGINGLY TO HELP UTILITIES SATISFY ENVIRONMENTAL REGULATORS THE DEPARTMENT I'M IN IS THE PIEINTHESKY PART OF THE COMPANY DR NEUHAUSER SAYS IT'S LOOKED UPON WITH SKEPTICISM BY EVERYONE ELSE TRUDGING THROUGH A SNOWY VALLEY THE BEARDED 42YEAROLD DR NEUHAUSER INSPECTS A FIELD OF WILLOW TREES THAT HE'S HELPING TO GROW AS AN ALTERNATIVE FUEL FOR COALBURNING ELECTRIC POWER PLANTS WITH A DOCTORATE IN BIOLOGY AND PUBLICATIONS ON SUCH SUBJECTS AS HOW EARTHWORMS CONVERT SLUDGE INTO TOPSOIL DR NEUHAUSER WOULD SEEM MORE AT HOME IN ACADEMIA THAN WORKING FOR A UTILITY IN FACT HE SPENT SEVERAL YEARS AS A CORNELL UNIVERSITY RESEARCHER BUT SINCE 1986 HE HAS PUT HIS ENVIRONMENTAL IDEALS TO WHAT HE SEES AS A TOUGHER TEST THE UTILITIES ARE BIG POTENTIAL POLLUTERS SO IF YOU'RE GOING TO CLEAN THINGS UP FOR THE NEXT GENERATION GOING TO WORK FOR THE SOURCE OF THE PROBLEM MAY BE A BETTER WAY TO EFFECT CHANGE THAN FROM THE OUTSIDE BUT INCREASINGLY THERE'S ALSO PRESSURE INSIDE DR NEUHAUSER'S BOSS ANDREW VESEY A NIAGARA MOHAWK VICE PRESIDENT SAYS HE'S TELLING THE UTILITY'S RESEARCHERS YOU HAVE TO BECOME MORE VALUABLE TO THE PEOPLE WHO MAKE DECISIONS ON FUNDING YOU OR YOU WON'T BE HERE ALL AROUND THE NATION'S 165 BILLION ELECTRIC UTILITIES INDUSTRY RESEARCHANDDEVELOPMENT BUDGETS FOR LOWPOLLUTING ENERGY SOURCES ARE UNDER PRESSURE RESEARCH SPENDING HAS BEEN FLAT FOR ABOUT FIVE YEARS AND IS EXPECTED TO DROP 2 IN 1994 ACCORDING TO INDUSTRY ESTIMATES AT STAKE IS THE UTILITIES RESEARCHER WHO COULD POTENTIALLY SAVE COMPANIES MONEY ON SUCH EXPENSES AS REGULATORY FINES AND STOPGAP EQUIPMENT WE RISK WIPING OUT A GENERATION OF TECHNOLOGICAL BREAKTHROUGHS SAYS JANE TURNBULL PROJECT MANAGER AT THE ELECTRIC POWER RESEARCH INSTITUTE A GROUP OF 700 UTILITIES IN PALO ALTO CALIF UTILITIES RESEARCH MAY BECOME A LOST CHILD MR VESEY WHO HAS NINE NIAGARA MOHAWK DEPARTMENTS REPORTING TO HIM SAYS THAT THE RESEARCH AND DEVELOPMENT GROUP RANKS NINTH IN ITS CONTRIBUTION TO THE BOTTOM LINE NONETHELESS THE UTILITY HAS INCREASED ITS ANNUAL BUDGET FOR RESEARCH ON ALTERNATIVE ENERGY TENFOLD SINCE 1988 TO 13 MILLION IN 1993 THIS YEAR HOWEVER NIAGARA MOHAWK'S 1994 R&D BUDGET PROBABLY WON'T GROW SAYS MR VESEY WHO CONCEDES THAT HE'S CONFLICTED ABOUT THE FUTURE OF SUCH PROJECTS AS DR NEUHAUSER'S EXPERIMENTAL WILLOWS I HAVE DAYS WHEN I WISH I DIDN'T HAVE TO LOOK 15 YEARS DOWN THE ROAD HE SAYS MEANWHILE SOME OTHER UTILITIES ARE SCRAPPING PLANS FOR MAJOR RENEWABLE FUEL PROJECTS ARIZONA PUBLIC SERVICE CO BASED IN PHOENIX RECENTLY CANCELED PLANS FOR A JOINT VENTURE WITH MOBIL CORP TO MAKE SOLAR ENERGY PANELS NO MATTER HOW YOU GOT THE PENCIL OUT THE NUMBERS JUST DIDN'T WORK OUT SAYS RICHARD MACLEAN ARIZONA PUBLIC SERVICE'S VICE PRESIDENT OF ENVIRONMENTAL HEALTH AND SAFETY SOLAR POWER FROM PHOTOVOLTAIC PANELS WAS STALLED BY HIGH PURCHASE AND MAINTENANCE COSTS ELECTRICITY PRODUCED BY THE PANELS COSTS THREE TIMES AS MUCH AS POWER FROM OIL OR NATURAL GAS THAT'S WHY MOBIL IS TRYING TO SELL OFF ITS RESEARCH DATA AND EQUIPMENT AFTER INVESTING SOME 100 MILLION OVER 19 YEARS TOM LEPLEY AN ELECTRICAL ENGINEER ON ARIZONA PUBLIC SERVICE'S RESEARCH STAFF HAS SEEN IT ALL BEFORE SINCE 1978 HIS DEPARTMENT HAS BEEN REDUCED TO FOUR PEOPLE FROM 12 IN 1985 HE RECEIVED A TERMINATION LETTER HIMSELF HE RECALLS THAT IT SAID YOUR SERVICES ARE NO LONGER NEEDED PLEASE LOOK FOR ANOTHER POSITION BUT HE IGNORED THE NOTICE AND MANAGED TO STAY ON THE PAYROLL THEY JUST SORT OF FORGOT ABOUT IT HE SAYS AND THINGS EASED UP LUCKILY FOR MR LEPLEY THE UTILITY SOON RECEIVED A GRANT FOR SOLAR CELL RESEARCH AND HE WAS JUST ABOUT THE LAST PERSON LEFT WHO KNEW MUCH ABOUT IT DODGING SUCH BULLETS IS A GROWING CONCERN AMONG UTILITIES RESEARCHERS WILLIAM MUSTON THE R&D MANAGER AT TEXAS UTILITIES CO IN DALLAS SAYS THAT ALTHOUGH HIS COMPANY HAS INCREASED SPENDING ON HIS DEPARTMENT OVER THE LAST THREE YEARS OUR REGULATORS ARE FORCING US TO HOLD THE LINE ON COSTS OUR LATEST RATE INCREASE IS SMALLER THAN WE HAD HOPED AND SOMEBODY'S BUDGET IS GOING TO GET CUT BETTER TO TRIM RESEARCH SPENDING THAN REAL MUSCLE AND BONE ARGUES SANFORD COHEN A UTILITIES ANALYST AT MORGAN STANLEY & CO WHAT I HAVE SEEN OF RENEWABLES RESEARCH RESULTS SO FAR DOESN'T IMPRESS ME AS TO ITS ECONOMIC VALUE HE ADDS NO UTILITY SHOULD ELIMINATE R&D COMPLETELY BUT EVERY DECISION SHOULD BE MADE BALANCED WITH NEARTERM ISSUES DR NEUHAUSER TRIES TO IGNORE THE TREND AS ONE OF 11 ELECTRICITY RESEARCHERS AT NIAGARA MOHAWK HE SPENDS MOST DAYS IN PLANNING SESSIONS ON PROJECTS THAT WOULD TAKE A DECADE OR LONGER HE ATTEMPTS TO PERSUADE OFFICIALS AT OTHER UTILITIES TO JOIN NIAGARA MOHAWK IN VARIOUS EXPERIMENTS AND HE PREPARES DETAILED WRITTEN REQUESTS FOR FEDERAL RESEARCH GRANTS A BURLY MAN WHO RAISES PIGS AT HOME AND MAKES HIS OWN SAUSAGE DR NEUHAUSER INSISTS THAT UTILITIES RESEARCH ISN'T JUST FOR DREAMERS WE'RE LOOKING FOR PRACTICAL AND COSTEFFECTIVE SOLUTIONS TO OUR CUSTOMERS' ENERGY REQUIREMENTS HE SAYS GROWING ENOUGH WILLOWS NEAR NIAGARA MOHAWK'S SYRACUSE HEADQUARTERS FOR EXAMPLE COULD CUT DOWN ON THE UTILITY'S COAL USE THAT WOULD ELIMINATE THE NEED TO SPEND HUNDREDS OF MILLIONS OF DOLLARS ON CHEMICAL SCRUBBING DEVICES TO SATISFY TIGHTENING FEDERAL CLEAR AIR ACT RULES BUT DR NEUHAUSER FEARS THAT THE PURSE STRINGS FOR RESEARCH AT MANY UTILITIES WILL CONTINUE TO DRAW TIGHTER VERY FEW WANT TO RISK BEING OUT THERE IN FRONT HE SAYS ALMOST EVERYONE WANTS TO BE SECOND 9401260159 940126 WHO'S NEWS CLINICOM INC CLINICOM INC BOULDER COLO MICHAEL CRABTREE 43 YEARS OLD JOINS THIS HOSPITAL INFORMATION SYSTEMS PROVIDER AS PRESIDENT A TITLE RELINQUISHED BY THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM BREHM 50 CLINICOM SAID MR CRABTREE PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF CONTINENTAL HEALTHCARE SYSTEMS INC WILL FOCUS ON ACQUISITIONS 9401260157 940126 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN HOWARD M SVIGALS 40 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THIS TELECOMMUNICATIONS COMPANY'S GTE SPACENET CORP SATELLITECOMMUNICATIONS UNIT PREVIOUSLY PRESIDENT OF GTE SPACENET MR SVIGALS WILL REPORT TO FRANCIS A GICCA PRESIDENT OF GTE GOVERNMENT SYSTEMS WITH WHICH GTE SPACENET RECENTLY WAS COMBINED 9401260156 940126 WHO'S NEWS SAPIENS INTERNATIONAL CORP SAPIENS INTERNATIONAL CORP CURACAO NETHERLANDS ANTILLES FREDERICK G TREMBLAY 52 YEARS OLD WAS APPOINTED PRESIDENT OF SAPIENS USA INC THE US SUBSIDIARY OF THE SOFTWARE CONCERN MR TREMBLAY FORMERLY A CONSULTANT WITH TREMBLAY & CO SUCCEEDS DAVID BURSIEK 56 WHO WILL BECOME CHIEF EXECUTIVE OFFICER OF SAPIENS INTERNATIONAL ON APRIL 1 9401260155 940126 INTERNATIONAL MCI TO HOOK UP WITH MEXICO'S BANACCI IN PLAN TO BUILD LONGDISTANCE NETWORK BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP LOOKING TO OFFER A SEAMLESS NORTH AMERICAN COMMUNICATIONS SERVICE WILL BUILD A LONGDISTANCE NETWORK IN MEXICO WITH GRUPO FINANCIERO BANAMEXACCIVAL BANACCI MEXICO'S LARGEST FINANCIAL GROUP THE COMPANIES VALUED THE JOINT VENTURE TO BUILD A LONGDISTANCE NETWORK AND DELIVER VOICE DATA AND VIDEO SERVICES IN MEXICO AT 1 BILLION OF WHICH MCI WILL INVEST 450 MILLION FOR A 45 STAKE BUT THEY SAID THE INVESTMENT COULD GO MUCH HIGHER AS SERVICE IS EXPANDED THROUGHOUT MEXICO THE 6 BILLION MEXICAN LONGDISTANCE PHONE MARKET IS EXPECTED TO IGNITE AS THE MEXICAN GOVERNMENT OPENS THE MARKET TO COMPETITORS BY 1996 AND THE NORTH AMERICAN FREE TRADE AGREEMENT INCREASES TRAFFIC BETWEEN THE US AND MEXICO IN ITS CONTINUING BATTLE TO WREST INTERNATIONAL TRAFFIC FROM AMERICAN TELEPHONE & TELEGRAPH CO MCI HAS NOW POSITIONED ITSELF TO OFFER SERVICES FROM ARCTIC CANADA TO THE YUCATAN PENINSULA BY USING CARRIERS IN THOSE COUNTRIES AS ITS PARTNERS WE'LL PROVIDE A UNIFIED COMMUNICATIONS INFRASTRUCTURE FOR THE ENTIRE CONTINENT SAID MCI CHAIRMAN BERT C ROBERTS JR INITIALLY THE ADVANCED FIBEROPTIC SYSTEM WILL LINK BUSINESS CUSTOMERS IN THREE OF MEXICO'S LARGEST CITIES MEXICO CITY GUADALAJARA AND MONTERREY BY 1999 IT WILL BLANKET MEXICO SAID FERNANDO QUIROS EXECUTIVE VICE PRESIDENT AT BANACCI MCI AND BANACCI MUST STILL GET A LICENSE FROM THE MEXICAN GOVERNMENT TO PROVIDE LONGDISTANCE SERVICE A SEEMINGLY INSIGNIFICANT HURDLE GIVEN BANACCI'S CLOUT WITHIN MEXICO AND THE GOVERNMENT'S DETERMINATION TO IMPROVE SERVICES THE BIGGER OBSTACLE MAY BE OVERCOMING THE ENTRENCHED MONOPOLY TELEFONOS DE MEXICO WHILE ITS RICKETY SYSTEM HAS GENERATED A PLETHORA OF BAD JOKES ABOUT MEXICAN PHONE SERVICE TELMEX HAS BEGUN A 30 BILLION REBUILDING EFFORT AIMED AT DELIVERING CONNECTIONS INSTEAD OF BUSY SIGNALS AND ALL UNDER THE CLOSE SUPERVISION OF ITS FOREIGN PARTNERS SOUTHWESTERN BELL CORP THE GIANT SAN ANTONIOBASED REGIONAL BELL COMPANY AND FRANCE TELECOM FRANCE'S NATIONAL CARRIER THE MCIBANACCI ALLIANCE WILL PROBABLY PUSH TELMEX INTO A CLOSER CUSTOMERSHARING ARRANGEMENT WITH AT&T YOU CAN BANK ON THAT TO HAPPEN BEFORE THE FLOWERS BLOOM THIS YEAR SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC ADDED ANDREW JAY FRIEDMAN AN ANALYST AT MEXICAN BROKER VECTOR TELMEX HAS TO SPEED UP A JOINT VENTURE ANNOUNCEMENT WITH AN AMERICAN COMPANY LEST ITS INVESTORS BECOME SKITTISH AN AT&T SPOKESMAN WOULD ONLY SAY THAT AT&T IS ALREADY PROVIDING THE MOST COMPREHENSIVE RANGE OF SERVICES IN NORTH AMERICA MCI AN OLD HAND AT UPENDING MONOPOLIES AFTER YEARS OF BATTLING AT&T ENVISIONS MEXICAN BUSINESS AND RESIDENTIAL CUSTOMERS USING MCILIKE SERVICES WHILE BUSINESSES ARE THE FIRST TARGETS EVENTUALLY YOU MIGHT EVEN SEE AN AMIGOS Y FAMILIA SERVICE SAID EUGENE EIDENBERG EXECUTIVE VICE PRESIDENT AND CHIEF OF MCI'S INTERNATIONAL GROUP REFERRING TO MCI'S HIGHLY SUCCESSFUL FRIENDS & FAMILY DISCOUNT CONSUMER PLAN FOR LEVERAGE THE PARTNERS WILL USE BANACCI'S HUGE MARKET POSITION 110000 LARGE BUSINESS CUSTOMERS AND TWO MILLION RETAIL BANKING CLIENTS TO LURE CONVERTS TO THEIR SERVICES AND MCI CAN TAP INTO THE BANAMEX PRIVATE MICROWAVE AND SATELLITE NETWORK THROUGH WHICH CLIENTS ELECTRONICALLY TRANSFER FUNDS AND USE AUTOMATED TELLER MACHINES MCI WHICH RECENTLY LAUNCHED A 20 BILLION NETWORK EXPANSION PLAN IS LINKED OPERATIONALLY WITH STENTOR THE LONGDISTANCE CARRIER RUN BY THE CANADIAN PHONE COMPANIES INCLUDING BELL CANADA AND MCI HAS BONDED WITH UK GIANT BRITISH TELECOMMUNICATIONS PLC WHICH PLANS TO SPEND 43 BILLION FOR A 20 STAKE IN THE WASHINGTON DC CARRIER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TELMEX AMERICAN DEPOSITARY SHARES CLOSED AT 6850 DOWN 125 CRAIG TORRES IN MEXICO CITY CONTRIBUTED TO THIS ARTICLE 9401260154 940126 FUTURE HEALTHCARE OFFERING CINCINNATI FUTURE HEALTHCARE INC SAID IT COMPLETED THE PUBLIC OFFERING OF 1359500 COMMON SHARES AT 1225 EACH THE PROVIDER OF CLINICAL TRIAL SERVICES TO THE PHARMACEUTICAL INDUSTRY SAID IT OFFERED 800000 OF THE SHARES WITH THE REMAINING 559500 BEING OFFERED BY SHAREHOLDER CHRISTOPHER L WHITE UNDERWRITERS LED BY MONNESS CRESPI HARDT & CO NEW YORK EXERCISED AN OPTION TO PURCHASE AN ADDITIONAL 80000 SHARES TO COVER OVERALLOTMENTS FUTURE HEALTHCARE SAID NET PROCEEDS OF THE OFFERING WHICH ARE EXPECTED TO BE 10 MILLION WILL BE USED TO REPAY ABOUT 11 MILLION PRINCIPAL AMOUNT OF DEBT AND TO ENHANCE COMPUTER TELECOMMUNICATIONS AND RELATED CAPITAL EQUIPMENT WITH THE BALANCE TO BE USED AS WORKING CAPITAL THE COMPANY SAID THAT AFTER COMPLETION OF THE OFFERING IT WILL HAVE 7655525 COMMON SHARES OUTSTANDING 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 9401260153 940126 ALAMO GROUP TO ACQUIRE SMA SEGUIN TEXAS ALAMO GROUP INC SAID IT HAS REACHED AN AGREEMENT TO ACQUIRE ALL THE SHARES OF SMA A FRENCH MAKER OF HEAVYDUTY TRACTORMOUNTED MOWING EQUIPMENT FOR 43 MILLION ALAMO WHICH ALSO MAKES TRACTORMOUNTED EQUIPMENT SAID THE ACQUISITION IS CONSIDERED A FOREIGN DIRECT INVESTMENT AND REQUIRES FRENCH GOVERNMENT APPROVAL SMA HAD 1993 SALES OF 72 MILLION ON THE NASDAQ STOCK MARKET ALAMO SHARES CLOSED AT 1475 DOWN 375 CENTS 9401260152 940126 ECONOMY EXISTINGHOME SALES CONTINUE STRONG CONSUMER CONFIDENCE INDEX INCREASES A WALL STREET JOURNAL NEWS ROUNDUP SALES OF PREVIOUSLY OWNED HOMES CONTINUED THEIR RECORD CLIMB IN DECEMBER RISING 67 FROM THE PREVIOUS MONTH EVEN SALES IN HARDHIT CALIFORNIA REBOUNDED TO THE HIGHEST LEVEL IN NEARLY FOUR YEARS ANALYSTS ATTRIBUTED THE RECORD TO GREATER CONSUMER CONFIDENCE AND A RUSH TO PURCHASE HOMES ON FEARS THAT INTEREST RATES WERE MOVING UP THE CONTINUED IMPROVEMENT IN CONSUMER SPIRITS WAS ALSO REFLECTED IN THE LATEST SURVEY BY THE CONFERENCE BOARD THE BUSINESS RESEARCH GROUP'S CONSUMER CONFIDENCE INDEX ROSE TO 832 IN JANUARY FROM 798 IN DECEMBER SINCE OCTOBER THIS MEASURE OF CONSUMER OPTIMISM HAS RISEN ROUGHLY 23 POINTS DESPITE THE INCREASE THERE ARE STILL NAGGING WORRIES ABOUT THE JOB MARKET MORE THAN A THIRD OF THE 5000 SURVEY PARTICIPANTS FELT THAT JOBS WERE HARD TO GET DURING JANUARY AND ONLY A SMALL PERCENTAGE EXPECT LABOR CONDITIONS TO IMPROVE IN THE COMING MONTHS STILL OPTIMISM INCREASED IN ALL REGIONS OF THE COUNTRY THIS MONTH EXCEPT FOR WEST NORTH CENTRAL WHICH INCLUDES MINNESOTA IOWA AND KANSAS SALES OF EXISTING SINGLEFAMILY HOMES SOARED TO A SEASONALLY ADJUSTED ANNUAL RATE OF 4490000 FROM A REVISED PACE OF 4210000 IN NOVEMBER ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THE DECEMBER SALES PACE JUMPED 111 FROM A YEAR EARLIER LAST YEAR HOME SALES TOTALED 38 MILLION A 79 INCREASE FROM 1992 AND THE MOST SINCE 1979 WHEN THE FIGURE WAS 3830000 DEMAND IS GOOD INTEREST RATES ARE VERY FRIENDLY WE'RE LOOKING AT A CONTINUED GOOD MARKET SAID JOHN TUCCILLO THE CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS THE WEST WHICH HAS SOME OF THE BEST MARKETS IN THE COUNTRY BUT HAD BEEN DRAGGED DOWN BECAUSE OF POOR SALES IN CALIFORNIA POSTED THE SECONDBEST GAINS IN DECEMBER WHILE PRICES REMAINED VIRTUALLY FLAT THE RESALE RATE FOR THE WEST CLIMBED 138 IN DECEMBER FROM A YEAR EARLIER CALIFORNIA'S EXISTINGHOME SALES JUMPED 121 FROM NOVEMBER AND 132 FROM A YEAR EARLIER ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS THAT WAS THE HIGHEST LEVEL OF ACTIVITY SINCE FEBRUARY 1990 BEFORE THE QUAKE THE CALIFORNIA MARKETS WERE REALLY STABILIZING ESPECIALLY IN THE NORTH SAID MR TUCCILLO MR TUCCILLO SAID THE COLD SPELL THAT HIT MOST OF THE COUNTRY IN JANUARY AND THE EARTHQUAKE THAT SHOOK LOS ANGELES WOULD DRIVE DOWN JANUARY'S HOMESALES PACE I'M NOT REAL OPTIMISTIC ABOUT GETTING HOUSING TO THIS NUMBER NEXT MONTH HE SAID THE JANUARY NUMBERS WILL BE SIGNIFICANTLY DEPRESSED IN DECEMBER THE MIDWEST LED THE COUNTRY WITH A 152 INCREASE IN THE PACE OF SALES THE SOUTH GREW 94 THE NORTHEAST WHICH HAD ALSO BEEN LAGGING BEHIND IN THE NATIONAL RECOVERY BECAUSE OF POOR JOB GROWTH ROSE 48 ANALYSTS SAID THE STRONG SALES WERE EXPECTED GIVEN THE ROBUST ACTIVITY SPURRED BY MORTGAGE RATES THAT ARE HOVERING AT A 20YEAR LOW BUT INGO WINZER PUBLISHER OF THE LOCAL MARKET MONITOR WHICH TRACKS HOUSING ACTIVITY SAID THE STRENGTH OF THE HOUSING RECOVERY IN MANY PARTS OF THE COUNTRY IS STILL BEING UNDERMINED BY THE RELATIVE WEAKNESS OF CALIFORNIA AND NEW ENGLAND WITHOUT CALIFORNIA AND IF NEW ENGLAND HAD AN EARTHQUAKE AND DROPPED INTO THE ATLANTIC THE ECONOMY WOULD LOOK MUCH BETTER THAN MANY PEOPLE THINK HE SAID WHILE CALIFORNIA SALES ARE COMING BACK MR WINZER SAID PRICES AREN'T UNLIKE THE REST OF THE NATION WHICH IS SEEING A MORE ROBUST REBOUND POWERED BY JOB GROWTH 9401260151 940126 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY TOWARD THE BREZHNEV DOCTRINE BY PAUL A GOBLE TODAY MUCH ATTENTION WILL BE FOCUSED ON LAST NIGHT'S STATE OF THE UNION MESSAGE WITH EMPHASIS NO DOUBT FALLING ON DOMESTIC ISSUES PRESIDENT CLINTON'S FAVORITES BUT THE PRESIDENT'S FOREIGN AGENDA SHOULD NOT BE FORGOTTEN HIS CONCESSIONS TO RUSSIAN SENSIBILITIES AT HIS MEETINGS IN BRUSSELS AND MOSCOW EARLIER THIS MONTH THREATEN TO STRENGTHEN RATHER THAN REDUCE THE DIVISION OF EUROPE AND TO LEAD TO A REGIME IN RUSSIA THAT COULD IGNITE A NEW COLD WAR IN PAST WEEKS THE PRESIDENT HAS DONE DESTRUCTIVE WORK BY REFUSING TO EXTEND NATO MEMBERSHIP EAST OUT OF CONCERN THAT IT WOULD UNDERMINE BORIS YELTSIN MR CLINTON HAS IN FACT SIGNALED THAT THERE ARE STILL TWO EUROPES NOT ONE AND BY ACQUIESCING TO RUSSIAN DEMANDS THAT MOSCOW BE ALLOWED TO INTERVENE MILITARILY IN THE FORMER SOVIET REPUBLICS IN THE GUISE OF PEACEKEEPING HE HAS SET IN MOTION PRESSURES THAT WILL PRECLUDE STABILITY IN THE REGION AND THE ESTABLISHMENT OF RUSSIAN DEMOCRACY AND HE HAS SET THE STAGE FOR RENEWED RUSSIANAMERICAN COMPETITION IF THE FIRST OF THESE ACTIONS HAS BEEN MUCH DISCUSSED THE SECOND ESPECIALLY ITS IMPLICATIONS FOR RUSSIA'S NEIGHBORS FOR RUSSIA ITSELF AND FOR US HAS BEEN LARGELY IGNORED BUT IN FACT IT IS LIKELY TO HAVE EVEN MORE FATEFUL IMPLICATIONS OF COURSE NO ONE WOULD DISPUTE THAT RUSSIA HAS LEGITIMATE INTERESTS IN THESE COUNTRIES THAT SHOULD BE TAKEN INTO ACCOUNT BUT WE SHOULD NOT CONCEDE TO RUSSIA A RIGHT TO BEHAVE TOWARD ITS NEIGHBORS IN WAYS THAT WE WOULD NOT ALLOW ANY OTHER COUNTRY TO GET AWAY WITH INDEED RUSSIAN CLAIMS OF A RIGHT TO INTERVENE IN FORMER SOVIET SPACE REPRESENT AS IT WERE A REVIVAL OF THE BREZHNEV DOCTRINE THE NOTION THAT THE SOVIET STATE HAD THE RIGHT TO INTERVENE IN ANY SOCIALIST COUNTRY TO DEFEND THE STATUS QUO THESE DAYS VIRTUALLY EVERYONE RECOGNIZES THAT THIS DOCTRINE WAS HARMFUL NOT ONLY FOR EASTERN EUROPE BUT FOR THE SOVIET UNION AS WELL YET SIMILARITIES IN THE CURRENT SCENARIO HAVE NOT BEEN UNDERSTOOD BY PRESIDENT CLINTON OR HIS ADVISERS INSTEAD MR CLINTON STROBE TALBOTT THE PRESIDENT'S NOMINEE FOR DEPUTY SECRETARY OF STATE AND CURRENTLY A STATE DEPARTMENT SPECIAL ADVISER AND THE US AMBASSADOR IN MOSCOW THOMAS PICKERING HAVE CHARACTERIZED RUSSIAN MILITARY INVOLVEMENT IN THESE COUNTRIES AS STABILIZING THIS EVEN WHEN RUSSIAN FORCE HAS BEEN USED TO SEIZE TERRITORY OR OVERTHROW GOVERNMENTS MOREOVER THEY HAVE FAILED TO RESPOND TO RUSSIAN FOREIGN MINISTER ANDREI KOZYREV'S DEMANDS THAT RUSSIA HAVE THE RIGHT TO SEND PEACEKEEPERS INTO ALL FORMER SOVIET REPUBLICS AND THAT THE INTERNATIONAL COMMUNITY PAY FOR THIS MR KOZYREV INCIDENTALLY MADE THIS CLAIM NOT ONLY IN A PRIVATE MEETING THAT THE RUSSIAN GOVERNMENT HAS DENIED TO THE RELIEF OF WASHINGTON BUT IN A JAN 14 ARTICLE IN THE RUSSIAN ARMY NEWSPAPER AS THIS NEWSPAPER'S EUROPEAN EDITION REPORTED EARLY THIS MONTH MR CLINTON IS PREPARED TO BE EXTREMELY SOLICITOUS TO RUSSIAN INSISTENCE ON THIS POINT WHEN PRESSED BY HIS ADVISERS TO URGE RESTRAINT ON THE KREMLIN MR CLINTON RESPONDED THAT YOU ARE RIGHT ON THE POLICY BUT WENT ON TO SAY THAT EVERYONE MUST UNDERSTAND WHAT THE RUSSIANS ARE GOING THROUGH CALLS FOR UNDERSTANDING ARE FINE BUT THEY MISS THE POINT PRECISELY BECAUSE THE STATES OF THE FORMER SOVIET UNION WERE SO INTEGRATED IN THE PAST AND BECAUSE THERE ARE NOT ONLY 25 MILLION RUSSIANS LIVING OUTSIDE THE RUSSIAN FEDERATION BUT ALSO 35 MILLION NONRUSSIANS LIVING OUTSIDE THEIR HOME TERRITORIES THE DIVORCE BETWEEN RUSSIA AND SUCH STATES AS THE BALTICS NEEDS TO BE CLEAN AND NONVIOLENT UNLESS THAT HAPPENS AND UNLESS WE AND THE REST OF THE INTERNATIONAL COMMUNITY INSIST THAT RUSSIA BEHAVE AS WE WOULD EXPECT OTHERS TO BEHAVE THE RISKS ARE ALL TOO GREAT THAT THE SITUATION WILL SPIRAL OUT OF CONTROL AND THAT WE WILL SEE THE RESTORATION OF A SINGLE ENTITY UNSTABLE WITHIN AND HOSTILE TO US ABROAD THE FIRST VICTIMS WILL BE THE NONRUSSIAN STATES RUSSIAN PRESSURE ON THE 14 NEW COUNTRIES IS ALREADY CREATING A DISASTER FIRST IT IS UNDERMINING THE LEGITIMACY OF THESE GOVERNMENTS IN THE EYES OF THEIR OWN POPULATIONS THUS REDUCING STILL FURTHER THEIR ABILITY TO MANAGE THE DIFFICULT TRANSITIONS WE ARE URGING ON THEM SECOND IT IS LEADING TO THE BIRTH OF ANTIRUSSIAN NATIONALISM AMONG THESE POPULATIONS WHEN THE SOVIET UNION COLLAPSED THERE WERE VIRTUALLY NO PHYSICAL ATTACKS ON RUSSIANS NOW THERE ARE LIKELY TO BE WHICH WILL MAKE RUSSIAN MILITARY INTERVENTION MORE LIKELY NOT LESS OUR FAILURE TO OPPOSE RUSSIAN MILITARY INTERVENTION ABSOLUTELY IS REDUCING OUR INFLUENCE IN MANY OF THESE COUNTRIES BECAUSE THEIR POPULATIONS INCREASINGLY VIEW US AS ASSISTING THE RUSSIAN RECONQUEST THE NEXT VICTIM IS RUSSIA ITSELF A NEWLY MILITARISTIC RUSSIA WILL MEAN THAT RUSSIA WILL HAVE TO MAINTAIN A LARGER DEFENSE SECTOR IN ORDER TO CONTROL THE SITUATION AND THAT THE MILITARY WILL HAVE A LARGER SAY IN WHAT GOES ON BOTH THESE THINGS WILL MAKE THE TRANSITION TO A MARKET ECONOMY AND A DEMOCRACY FAR MORE DIFFICULT BUT THE CHANGE ALSO MEANS THAT RUSSIANS WILL NOT HAVE TO COME TO TERMS WITH THEIR OWN PLACE IN THE WORLD WITH THE FACT THAT RUSSIA SHOULD BECOME A COUNTRY NOT A CAUSE THE STRONG SHOWING OF VLADIMIR ZHIRINOVSKY IS A SYMPTOM OF THIS NOT ITS SOURCE AS SO MANY IN THE ADMINISTRATION SEEM TO THINK BUT THE FINAL VICTIMS WILL BE EUROPE AND THE US AND THE HOPES FOR PEACE AND PROSPERITY IN THE FUTURE JUST AS A LIBERAL AND FRIENDLY SOVIET UNION PROVED TO BE A CONTRADICTION IN TERMS SO TOO WILL BE A LIBERAL RUSSIAN EMPIRE PURSUING WHAT ITS DEFENDERS IN MOSCOW AND THE WEST SEE AS A BENIGN MONROESKI DOCTRINE IN SHORT BY CATERING TO RUSSIAN SENSITIVITIES WE ARE NOT DOING ANYONE ANY FAVORS NOT THE NONRUSSIANS NOT RUSSIA ITSELF AND CERTAINLY NOT OURSELVES MR GOBLE FORMERLY STATE DEPARTMENT SPECIAL ADVISER FOR SOVIET NATIONALITY PROBLEMS AND BALTIC AFFAIRS IS A SENIOR ASSOCIATE OF THE WASHINGTONBASED CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE 9401260150 940126 WESTMORELAND LG&E VENTURE PHILADELPHIA WESTMORELAND ENERGY INC AND LG&E POWER INC SAID THEY HAVE COMPLETED FINANCING FOR A 933 MILLION JOINTVENTURE INDEPENDENT POWER PROJECT IN ROANOKE VA THE JOINT VENTURE WILL CONSTRUCT A 44MEGAWATT COALFIRED COGENERATION FACILITY AND SELL ELECTRICITY TO NORTH CAROLINA POWER A UNIT OF DOMINION RESOURCES INC AND STEAM TO PATCH RUBBER CO A UNIT OF MYERS INDUSTRIES INC AKRON OHIO WESTMORELAND COAL CO PARENT OF WESTMORELAND ENERGY WILL PROVIDE 795 OF THE PROJECT'S COAL REQUIREMENTS LG&E POWER A UNIT OF LG&E ENERGY CORP LOUISVILLE KY SPECIALIZES IN DEVELOPING COGENERATION POWER PROJECTS LG&E ENERGY IS A UTILITY HOLDING COMPANY 9401260149 940126 ABN AMRO BANK UNIT'S RESULTS UNIONDALE NY EAB A BANKING COMPANY REPORTED FOURTHQUARTER EARNINGS OF 174 MILLION UP 12 FROM THE YEAR EARLIER PROFIT FOR ALL OF 1993 CLIMBED 22 TO 671 MILLION EAB WHICH HAS ASSETS OF 6 BILLION IS A UNIT OF ABN AMRO BANK NV THE DUTCH BANKING CONCERN EARNINGS WERE HELPED BY A DECLINE IN THE PROVISION FOR LOAN LOSSES AND A PICKUP IN OTHER REVENUE SUCH AS SERVICE CHARGES NET INTEREST INCOME DECLINED SLIGHTLY IN THE QUARTER AND ROSE A BIT FOR THE FULL YEAR 9401260148 940126 UNILAB ACQUIRES PREMIER LABS TARZANA CALIF UNILAB CORP COMPLETED ITS ACQUISITION OF PREMIER LABORATORY SERVICES INC THE PARENT COMPANY OF PATHLAB UNILAB A MEDICALTESTING CONCERN SAID THE PURCHASE PRICE IS 315 MILLION IN CASH AND 75 MILLION IN UNILAB COMMON STOCK UNILAB SAID IT WILL OPERATE UNDER THE PATHLAB NAME IN THE SAN JOSE AND SAN FRANCISCO AREAS PATHLAB BASED IN SAN JOSE CALIF HAS CURRENT ANNUAL SALES OF ABOUT 22 MILLION ON THE NASDAQ STOCK MARKET UNILAB SHARES CLOSED AT 6 UNCHANGED 9401260147 940126 MARKETING & MEDIA USA NETWORKS SPANISH CHANNEL NEW YORK USA NETWORKS INTERNATIONAL A DIVISION OF USA NETWORKS SAID IT WILL LAUNCH A 24HOUR SPANISHLANGUAGE GENERAL ENTERTAINMENT CABLETELEVISION NETWORK IN LATIN AMERICA IN APRIL USA A 5050 JOINT VENTURE OF PARAMOUNT COMMUNICATIONS INC NEW YORK AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC LOS ANGELES SAID PARAMOUNT AND MCA'S UNIVERSAL STUDIOS WILL SUPPLY PROGRAMMING IN ADDITION TO USA'S OWN PROGRAMMING THE COMPANY IS WORKING WITH OPERATORS AND PROGRAM DISTRIBUTORS INCLUDING MULTIVISION OF MEXICO PRODUFE OF ARGENTINA AND CABLEVISION OF VENEZUELA TO CARRY AND DISTRIBUTE THE PROGRAMMING 9401260146 940126 BUSINESS BRIEF GOLDEN WEST'S PROFIT SLIPPED IN 4TH PERIOD AHMANSON'S SOARED TWO LARGE CALIFORNIA THRIFTS BENEFITING FROM SIGNS OF RECOVERY IN CALIFORNIA'S ECONOMY POSTED HEALTHY OPERATING RESULTS FOR THE FOURTH QUARTER OAKLANDBASED GOLDEN WEST FINANCIAL CORP PARENT OF WORLD SAVINGS & LOAN ASSOCIATION EARNED 679 MILLION OR 106 A SHARE DOWN 29 FROM 699 MILLION OR 110 A SHARE FOR THE YEAREARLIER PERIOD IRWINDALEBASED HF AHMANSON & CO PARENT OF HOME SAVINGS OF AMERICA SAID EARNINGS ALMOST DOUBLED TO 285 MILLION OR 14 CENTS A SHARE FROM 155 MILLION OR 10 CENTS A SHARE ANALYSTS SAID THE RESULTS WERE ROUGHLY IN LINE WITH EXPECTATIONS WITH GOLDEN WEST PERFORMING SLIGHTLY BETTER THAN EXPECTED AND AHMANSON SLIGHTLY WORSE GOLDEN WEST BLAMED ITS FLAT EARNINGS PARTLY ON CALIFORNIA'S REALESTATE RECESSION THE COMPANY'S RESULTS WERE AIDED BY A ONETIME GAIN OF 17 MILLION BECAUSE OF A REDUCTION IN THE VALUE OF AN INVESTMENT ALLOWANCE CHARGED AGAINST INCOME IN PREVIOUS YEARS THE COMPANY ALSO STRENGTHENED ITS PROVISION FOR LOAN LOSSES AND REDUCED INCOME BY 9 MILLION TO FORM A RESERVE FOR THE RELOCATION OF SELECTED BRANCH OFFICES AHMANSON'S EARNINGS WERE AFFECTED BY A NONRECURRING CHARGE OF 216 MILLION RESULTING FROM THE EARLY RETIREMENT OF 325 MILLION OF HOME SAVINGS DEBT THE COMPANY'S ASSET QUALITY IMPROVED DURING THE QUARTER WITH NONPERFORMING ASSETS EQUALLING 189 OF TOTAL ASSETS THE LOWEST LEVEL SINCE JANUARY 1991 THIS IS A TURNAROUND JOSEPH JOLSON AN ANALYST AT MONTGOMERY SECURITIES SAID OF AHMANSON BUT IT IS TO SOME EXTENT A TURNAROUND TIED TO THE SOUTHERN CALIFORNIA ECONOMY WHOSE PROSPECTS ARE UNCERTAIN IN THE WAKE OF THIS MONTH'S BIG EARTHQUAKE FOR THE YEAR AHMANSON REPORTED A NET LOSS OF 1596 MILLION OR 169 A SHARE FOR 1993 COMPARED WITH EARNINGS OF 2041 MILLION OR 160 A SHARE FOR 1992 GOLDEN WEST POSTED EARNINGS OF 2739 MILLION OR 428 A SHARE FOR 1993 DOWN 35 FROM 2835 MILLION OR 446 A SHARE FOR 1992 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AHMANSON STOCK ROSE 25 CENTS OR 14 TO CLOSE AT 18625 A SHARE WHILE GOLDEN WEST STOCK FELL 125 CENTS OR 03 TO CLOSE AT 43625 9401260145 940126 WHO'S NEWS REPUBLIC GYPSUM CO REPUBLIC GYPSUM CO DALLAS DAVID P SIMPSON WAS NAMED A DIRECTOR OF THIS FORESTPRODUCTS COMPANY EXPANDING THE BOARD TO NINE MEMBERS MR SIMPSON 32 YEARS OLD MANAGES FORESTLAND INTERESTS IN EAST TEXAS OWNS A PUBLISHING COMPANY AND IS MAYOR OF AVINGER TEXAS HE IS THE SON OF PHIL SIMPSON REPUBLIC'S CHAIRMAN 9401260144 940126 STUDY OF VANCOUVER EXCHANGE SCANDALS PROPOSES SWEEPING REGULATORY CHANGES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL A LAWYER COMMISSIONED TO CONDUCT AN INQUIRY INTO THE SCANDALRIDDEN VANCOUVER STOCK EXCHANGE IS RECOMMENDING THAT THE BRITISH COLUMBIA GOVERNMENT MAKE SWEEPING CHANGES IN THE WAY THE MARKET IS REGULATED JAMES MATKIN APPOINTED BY THE PROVINCIAL GOVERNMENT LAST MAY IN THE WAKE OF NEW SCANDALS AND DEATH THREATS AGAINST A VANCOUVER BUSINESS REPORTER IS PROPOSING THAT THE GOVERNMENT DISMANTLE THE NINEYEAROLD BRITISH COLUMBIA SECURITIES COMMISSION IN ITS PLACE MR MATKIN RECOMMENDS THAT THE GOVERNMENT ESTABLISH A SECURITIES AND EXCHANGE BOARD THE BCSC'S CREDIBILITY IN THE BUSINESS COMMUNITY HAS BEEN ERODED MR MATKIN SAID IN HIS REPORT IT HAS BEEN HE ARGUED TOO PASSIVE IN ITS REGULATORY ACTIVITY AND OVEROCCUPIED WITH THE PROSECUTION AND ADJUDICATION OF SECURITIES ABUSE A BETTER SYSTEM MR MATKIN SAID IS ONE THAT ALLOWS REGULATORS THEMSELVES NOT ONLY TO SEEK OUT AND PUNISH THOSE WHO VIOLATE RULES BUT TO DEVELOP WAYS TO PREVENT VIOLATIONS FROM OCCURRING HE MAINTAINED THAT REGULATORY SYSTEMS THAT WORK WELL ELSEWHERE IN CANADA MAY NOT BE THE ANSWER IN VANCOUVER IN MANY WAYS THE PROPOSED SECURITIES AND EXCHANGE BOARD WOULD BEAR MORE RESEMBLANCE TO THE US SECURITIES AND EXCHANGE COMMISSION THAN TO ANY CANADIAN REGULATORY BODY FOR EXAMPLE MR MATKIN'S KEY PROPOSAL IS TO SEPARATE POLICYMAKING AND ADJUDICATION RESPONSIBILITIES AT THE NEW REGULATORY BODY UNDER HIS PLAN ADMINISTRATIVE LAW JUDGES WOULD HANDLE THE LATTER FREEING MEMBERS OF THE BOARD TO DEVELOP SOLUTIONS FOR SOME OF THE VANCOUVER EXCHANGE'S CHRONIC PROBLEMS MARKET MANIPULATION AND INSIDER TRADING AMONG THEM MR MATKIN SAID HE HOPES A BIFURCATED SYSTEM WOULD ATTRACT NEW TYPES OF BOARD MEMBERS TO THE REGULATORY ARENA SUCH AS LAWYERS ACCOUNTANTS AND MONEY MANAGERS WHO WOULDN'T HAVE THE TIME OR INTEREST IN THE ADJUDICATION RESPONSIBILITIES BUT WHO WOULD BE OF GREAT ASSISTANCE IN POLICYMAKING OTHER RECOMMENDATIONS CONTAINED IN MR MATKIN'S FINAL REPORT RANGE FROM REGULATING VANCOUVER'S NOTORIOUS FREEWHEELING STOCK PROMOTERS TO GIVING INVESTORS ACCESS TO REALTIME REPORTS ON TRADING ACTIVITY BY CORPORATE INSIDERS CURRENTLY ABOUT HALF OF THAT DATA IS FILED VERY LATE OR NOT AT ALL MR MATKIN SAID MR MATKIN ALSO PROPOSES ENSURING THAT BROKERS HAVE THE NEEDED STAFF TO CONDUCT DUEDILIGENCE REVIEWS IN ADDITION HE WANTS TO ALLOW AGGRIEVED INVESTORS TO FILE CLASSACTION SUITS MR MATKIN'S PROPOSALS ARE LIKELY TO COME IN FOR A ROUGH RIDE IN VANCOUVER WHERE UNSURPRISINGLY REGULATORS ARE UNITED IN THEIR DISLIKE OF MR MATKIN'S KEY PROPOSAL THE NEW SECURITIES BOARD FRANK GIUSTRA PRESIDENT OF YORKTON SECURITIES INC ONE OF THE LARGEST VANCOUVERBASED BROKERAGE FIRMS SAID HE AGREES ONLY WITH MR MATKIN'S LISTING OF THE PROBLEMS FACING REGULATORS IN VANCOUVER BUT HE HASN'T OFFERED A SOLUTION TO THOSE PROBLEMS MR GIUSTRA SAID INSTEAD HE'S PROPOSING AN ELABORATE COSTLY TIMECONSUMING NEW REGULATORY STRUCTURE IF THAT'S ALL HE'S SAYING WE'VE WASTED A LOT OF TIME AND MONEY JOHN WOODS EDITOR OF CANADA STOCKWATCH A VANCOUVERBASED NEWSLETTER BELIEVES MR MATKIN COULDN'T HAVE SOLVED THE PROBLEMS JUST BY RECOMMENDING MORE RESOURCES FOR THE SECURITIES COMMISSION AS MR GIUSTRA AND OTHERS WOULD HAVE LIKED WE REALLY NEED SUBSTANTIVE CHANGES AT THE TOP IF WE'RE EVER GOING TO CONVINCE INVESTORS THAT REAL CHANGES ARE HAPPENING NOT JUST RHETORIC MR WOODS SAID THE FUTURE OF MR MATKIN'S RECOMMENDATIONS NOW LIES WITH BRITISH COLUMBIA'S SOCIALIST GOVERNMENT WHILE A 1978 REPORT DRAWING SIMILAR CONCLUSIONS ABOUT THE NEED FOR REFORM FELL ON DEAF EARS THE NEW DEMOCRATIC PARTY EMBARRASSED BY NEGATIVE PUBLICITY AND CRITICAL OF THE EXCHANGE IN THE PAST MAY FIND IT DIFFICULT NOT TO IMPLEMENT REFORMS 9401260143 940126 ELECTRONIC DATA BUYS A STAKE IN EUROPE'S IBOS BANKING SYSTEM DALLAS ELECTRONIC DATA SYSTEMS CORP SAID IT BOUGHT A 317 STAKE IN EUROPE'S IBOS ELECTRONICBANKING SYSTEM IBOS WHICH STANDS FOR INTERBANK ONLINE SYSTEM WAS DEVELOPED BY SPAIN'S BANCO SANTANDER AND THE ROYAL BANK OF SCOTLAND GROUP PLC TO PROVIDE HIGHSPEED ELECTRONIC BANKING SERVICES ACROSS NATIONAL BORDERS UNDER THE DEAL WITH EDS A UNIT OF GENERAL MOTORS CORP THE TWO FOUNDING BANKS WILL EACH KEEP A 317 STAKE IN THE VENTURE GOLDMAN SACHS & CO THE US INVESTMENT BANK THAT SERVES AS IBOS'S FINANCIAL ADVISER WILL HOLD THE REMAINING 5 EDS DECLINED TO SAY HOW MUCH IT PAID FOR ITS ONETHIRD STAKE ROYAL BANK AND SANTANDER OFFICIALS NOTED THAT THE TWO BANKS HAVE SPENT AROUND 8 MILLION 12 MILLION ON IBOS OVER THE PAST FOUR YEARS THE SYSTEM SERVES FOUR BANKING COMPANIES WITH MORE THAN 2600 LOCATIONS IN THE UNITED KINGDOM SPAIN FRANCE AND PORTUGAL THOMAS METZ A FORMER EDS OFFICIAL WHO SERVES AS IBOS'S DIRECTOR OF GLOBAL BUSINESS DEVELOPMENT SAID HE EXPECTS THE SYSTEM TO EXPAND INTO THE US WITHIN SIX MONTHS TWO US BANKS MELLON BANK CORP AND FIRST FIDELITY BANCORP HAVE SIGNED LETTERS OF INTENT TO JOIN THE SYSTEM AS HAS A SANTANDER SUBSIDIARY IN PUERTO RICO THOUGH EDS OFFICIALS' INITIAL IBOS INVESTMENT IS RELATIVELY SMALL THEY SAY IT IS PART OF A CONCENTRATED PUSH BY THE TECHNOLOGY CONCERN TO EXPAND ITS PRESENCE IN THE AREA OF INTERACTIVE ELECTRONIC BANKING 9401260142 940126 NASD GOVERNORS GIVE NONMEMBERS ACCESS TO SELECTNET WASHINGTON IN A MOVE THAT WILL CHEER INSTITUTIONAL INVESTORS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID YESTERDAY THAT ITS BOARD OF GOVERNORS APPROVED GRANTING ACCESS FOR NONNASD MEMBERS TO SELECTNET WHICH ALLOWS MEMBERS TO NEGOTIATE AND EXECUTE TRANSACTIONS VIA COMPUTER FOR NASDAQLISTED STOCKS THE SELECTNET MODIFICATIONS WHICH WILL BE PRESENTED TO THE SECURITIES AND EXCHANGE COMMISSION FOR APPROVAL NEXT MONTH WOULD ALLOW MEMBERS AND NONMEMBERS ALIKE TO VIEW ANY BROADCAST OF AN ORDER BY A MARKETMAKER AND ITS EXECUTION NASD SAID NONMEMBERS WOULD NEED TO EXECUTE TRANSACTIONS VIA SELECTNET THROUGH MEMBER FIRMS NASD SAID ONLY MARKETMAKERS WOULD BE ABLE TO INTERACT WITH ORDERS FROM FIRMS THAT ARE NOT MARKET MAKERS IT ADDED INSTITUTIONAL INVESTORS HAD LOBBIED FOR THE CHANGE BECAUSE THEY SAW AMPLE OPPORTUNITY FOR IMPROVED PRICE DISCOVERY IN THE SYSTEM RICHARD KETCHUM NASD'S CHIEF OPERATING OFFICER SAID ANYTIME THAT YOU CAN INCREASE THE AMOUNT OF PRICE AND VOLUME INFORMATION AVAILABLE TO THE PUBLIC INVESTORS AND TRADERS ALIKE GAIN INEVITABLE BENEFITS SEPARATELY NASD SAID IT WOULD IMPLEMENT MODIFICATIONS TO NASDAQ'S SMALL ORDER EXECUTION SYSTEM BEGINNING NEXT MONDAY THE PATH FOR IMPLEMENTATION WAS CLEARED EARLIER THIS WEEK WHEN THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA DENIED MOTIONS FOR A STAY FROM PETITIONERS THE COURT SAID THE PETITIONERS HAD NOT DEMONSTRATED THE REQUISITE IRREPARIBLE INJURY 9401260141 940126 MARKETING & MEDIA DOW JONES LAUNCHES ASIAN NEWS SERVICE VIA TELERATE SYSTEM SINGAPORE DOW JONES & CO LAUNCHED AN ASIAN CORPORATE FINANCIAL NEWS SERVICE DISTRIBUTED THROUGH DOW JONES TELERATE A PROVIDER OF REALTIME FINANCIAL INFORMATION THE NEWS SERVICE DOW JONES ASIAN EQUITIES REPORT WILL CONCENTRATE ON ASIAN BUSINESS AND FINANCIAL NEWS AND WILL COVER THE REGION'S 12 LEADING STOCK MARKETS AND NEWS AFFECTING THEM THE REPORT CURRENTLY AVAILABLE IN ASIA IS DELIVERED ON THE TELERATE DYNAQUOTE REGIONAL EQUITIES SERVICE AND IS ALSO AVAILABLE AS AN OPTIONAL SERVICE ON TELERATE MATRIX TELERATE WORKSTATION AND OTHER TELERATE SERVICES THESE SERVICES PROVIDE MARKET PRICES AND OTHER FINANCIAL INFORMATION DOW JONES ASIAN EQUITIES REPORT WILL BE AVAILABLE GLOBALLY AT A LATER DATE IN ADDITION TO ITS OWN STAFF DOW JONES ASIAN EQUITIES REPORT WILL USE REPORTERS FROM THE WALL STREET JOURNAL THE ASIAN WALL STREET JOURNAL AND THE FAR EASTERN ECONOMIC REVIEW TO PROVIDE COVERAGE AND ANALYSIS OF ASIAN COMPANIES MARKETS AND INDUSTRY SECTORS THE REPORT WILL ALSO DRAW ON THE RESOURCES OF APDOW JONES A JOINT VENTURE OF THE ASSOCIATED PRESS AND DOW JONES APDOW JONES OFFERS SEVERAL NEWS SERVICES WORLDWIDE DOW JONES BASED IN NEW YORK PUBLISHES THE WALL STREET JOURNAL BARRON'S THE FAR EASTERN ECONOMIC REVIEW AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS ALONG WITH REALTIME FINANCIAL INFORMATION DOW JONES TELERATE PROVIDES FINANCIALANALYSIS TOOLS AND TRANSACTION SERVICES TO THE INTERNATIONAL BUSINESS COMMUNITY 9401260140 940126 WHO'S NEWS AUTOMATIC DATA PROCESSING POSTS ROSELAND NJ AUTOMATIC DATA PROCESSING INC NAMED ARTHUR F WEINBACH PRESIDENT AND CHIEF OPERATING OFFICER OF THE DATAPROCESSING COMPANY AS CHIEF OPERATING OFFICER MR WEINBACH 50 YEARS OLD SUCCEEDS JOSH S WESTON 65 WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE THE POSITION OF PRESIDENT HAS BEEN VACANT SINCE 1989 WHEN FORMER PRESIDENT WILLIAM J TURNER LEFT THE COMPANY TO JOIN LEVERAGED BUYOUT CONCERN FORSTMANN LITTLE & CO MR WEINBACH HAS BEEN EXECUTIVE VICE PRESIDENT OF ADP SINCE 1992 AND WILL REMAIN A DIRECTOR OF THE COMPANY HE WILL FOCUS PRIMARILY ON OPERATING ISSUES MR WESTON WHO WILL CONCENTRATE ON STRATEGIC OPPORTUNITIES SAID IN AN INTERVIEW HE HAS NO PLANS TO RETIRE NOTING THAT ADP HAS NO COMPULSORY RETIREMENT POLICY HE BECAME PRESIDENT AND CHIEF EXECUTIVE IN 1982 WHEN FORMER CHIEF EXECUTIVE FRANK LAUTENBERG WAS ELECTED TO THE US SENATE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ADP CLOSED AT 52625 DOWN 125 CENTS 9401260139 940126 BANK OF BOSTON UNIT TO PAY HOMEOWNERS 45 MILLION IN SUIT BOSTON A UNIT OF BANK OF BOSTON CORP AGREED TO DISBURSE 45 MILLION TO HOMEOWNERS FROM THEIR ESCROW ACCOUNTS TO SETTLE A CLASSACTION SUIT THAT ALLEGED THE COMPANY HELD EXCESSIVE FUNDS IN THE ACCOUNTS THE UNIT BANCBOSTON MORTGAGE CORP A MORTGAGE COMPANY BASED IN JACKSONVILLE FLA ANNOUNCED PLANS TO SETTLE A SIMILAR SUIT BY THE FLORIDA ATTORNEY GENERAL LAST NOVEMBER IN BOTH LAWSUITS AND OTHERS FILED IN MORE THAN A DOZEN STATES HOMEOWNERS HAVE PRESSED BANK AND MORTGAGE COMPANIES TO CHANGE THEIR ACCOUNTING METHODS FOR ESCROW FUNDS PAID MONTHLY THE FUNDS ARE USED TO COVER INSURANCE AND PROPERTY TAXES GENERAL MOTORS CORP'S FINANCE UNIT AND FLEET FINANCIAL GROUP INC HAVE ALSO SETTLED WITH CONSUMERS BY RETURNING FUNDS HELD IN ESCROW PLAINTIFFS IN THESE CASES SUCCESSFULLY HAVE ARGUED FOR CHANGING TO AGGREGATE ACCOUNTING METHODS EFFECTIVELY CUTTING THE AMOUNT HELD FROM MONTH TO MONTH BY BANKS IN THE LATEST SUIT FILED IN STATE COURT IN MOBILE ALA JUDGE BRAXTON L KITTRELL JR RULED THAT BANCBOSTON MORTGAGE'S ESCROWACCOUNT DEPOSIT REQUIREMENTS EXCEEDED THE REQUIREMENTS OF ITS MORTGAGE CONTRACTS UNDER THE SETTLEMENT IN WHICH BANCBOSTON MORTGAGE ADMITS NO GUILT AND PAYS NO DAMAGES EACH OF THE MORTGAGE CONCERN'S 315000 CUSTOMERS NATIONWIDE WILL RECEIVE AN AVERAGE REFUND OF 130 BANCBOSTON MORTGAGE WILL ALSO REDUCE BY ABOUT 19 THE REQUIRED FUTURE BALANCE OF EACH ACCOUNT 9401260138 940126 LORENZO CUTS STAKE ADDS INVESTORS IN BID TO START UP AIRLINE NEW YORK FRANK LORENZO WILL CUT HIS CONTROLLING STAKE OF HIS WOULDBE CARRIER ATX INC BY BRINGING IN NEW INVESTORS IN AN ATTEMPT TO GET THE STARTUP AIRLINE OFF THE GROUND ODYSSEY PARTNERS A PRIVATE NEW YORK INVESTMENT FIRM WILL INVEST 5 MILLION AND AN ADDITIONAL 75 MILLION WAS RAISED IN A PRIVATE PLACEMENT ARRANGED BY KIDDER PEABODY & CO AND SAVOY CAPITAL INC MR LORENZO'S HOUSTONBASED VENTURECAPITAL FIRM THOSE ACTIONS WILL CUT MR LORENZO'S STAKE TO ABOUT 24 FROM MORE THAN 70 ODYSSEY PARTNERS WILL HAVE ALMOST THE SAME AMOUNT AS MR LORENZO AND THE OTHER NEW INVESTORS EACH WILL HAVE LESS THAN 10 THE NEW INVESTORS WILL RECEIVE A NEW ISSUE OF CONVERTIBLE PREFERRED STOCK THAT WILL AGGREGATE TO 58 OF THE COMPANY'S EQUITY AND VOTING CONTROL THE MOVE APPEARS DESIGNED TO ELICIT AN APPROVAL FOR ATX FROM THE US TRANSPORTATION DEPARTMENT AN ADMINISTRATIVE LAW JUDGE FOR THE DEPARTMENT RULED LAST MONTH THAT WHILE ATX WAS FINANCIALLY FIT MR LORENZO WASN'T LIKELY TO COMPLY WITH RULES GOVERNING AIRLINES ATX SAYS THE LAW JUDGE'S RULING IS INCORRECT STEPHEN BERGER AN ODYSSEY PARTNER WILL BECOME ATX'S CHAIRMAN AND THE NEW INVESTORS WILL INCLUDE FORMER NEW YORK GOV HUGH CAREY DISQUE D DEANE FORMER CHIEF EXECUTIVE AND CHAIRMAN EMERITUS OF CORPORATE PROPERTY INVESTORS WILLIAM E JOHNSON FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCIENTIFICATLANTA INC THE THREE MEN ALSO WILL BE ADDED TO ATX'S BOARD OTHER NEW INVESTORS WEREN'T IDENTIFIED ATX PLANS TO START LOWFARE SERVICE IN LATE SPRING TO MAJOR EAST COAST CITIES 9401260137 940126 CREDIT RATINGS AMERICAN ELECTRIC POWER CO COLUMBUS OHIO STANDARD & POOR'S CORP SAID IT RAISED THE PREFERRED STOCK RATING ON THIS COMPANY'S COLUMBUS SOUTHERN POWER CO UNIT TO TRIPLEB FROM TRIPLEBMINUS ABOUT 125 MILLION OF PREFERRED STOCK IS AFFECTED S&P CITED A RECENT RATE INCREASE BY THE PUBLIC UTILITIES COMMISSION OF OHIO AND ADDED THAT THE UPGRADE ALSO REFLECTS A STRUCTURALLY LOWRISK UTILITY CUMMINS ENGINE CO COLUMBUS IND MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON 253 MILLION OF DEBT OF THIS MAKER OF DIESEL ENGINES IT CITED THE FAVORABLE INTERMEDIATETERM OUTLOOK FOR SALES AND OPERATING PERFORMANCE AS A RESULT OF A STRONGER AND MORE DIVERSIFIED CUSTOMER BASE THE EXPANSION OF THE COMPANY'S INTERNATIONAL PRESENCE AND BETTER COST CONTROLS THE RATINGS CONCERN ADDED THAT A RECENT 126 MILLION EQUITY OFFERING AND THE PLANNED CONVERSION OF 112 MILLION OF PREFERENCE STOCK INTO COMMON STOCK WILL RESULT IN A SIGNIFICANT IMPROVEMENT IN CUMMINS'S LEVERAGE AND DEBTPROTECTION MEASUREMENTS AMONG THE IMPROVED RATINGS THE COMPANY'S SENIOR DEBT WAS RAISED TO BAA2 FROM BA1 AND CONVERTIBLE PREFERENCE STOCK TO BAA3 FROM BA3 RIGGS NATIONAL CORP WASHINGTON DC MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON THE SUBORDINATED DEBT OF THIS BANKING COMPANY TO B3 FROM CA REFLECTING AN IMPROVED CAPITAL POSITION ABOUT 213 MILLION OF DEBT SECURITIES IS AFFECTED MOODY'S ALSO NOTED THAT THE COMPANY HAS BEEN REDUCING NONPERFORMING ASSETS ALTHOUGH THE LEVEL OF PROBLEM ASSETS REMAINS HIGH 9401260136 940126 WORLD MARKETS PRICES IN TOKYO REBOUND 16 AFTER DEEP SLIDE LOSE 11 IN LONDON CLIMB 22 IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES CLIMBED 16 TUESDAY ON BUYING BY ARBITRAGERS AND OVERSEAS INVESTORS FOLLOWING THE PREVIOUS DAY'S SLIDE THE STEEPEST IN 2 1/2 YEARS LONDON PRICES FELL SHARPLY IN A LATE SELLOFF SPARKED BY WALL STREET'S LOWER OPENING FRANKFURT STOCKS CONTINUED TO REBOUND JUMPING 22 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11341 UP 042 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS CONSUMER ELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12363 UP 340 OR 28 WITH KENWOOD OF JAPAN POSTING A 63 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 18750 DOWN 2897 OR 13 WITH UNITED PLANTATIONS OF MALAYSIA SLIDING 19 IN LOCAL CURRENCY BUT SOME TRADERS TERMED THE REBOUND PALTRY GIVEN MONDAY'S 49 NOSE DIVE BY THE NIKKEI WHILE FOREIGN INVESTORS BOUGHT POSITIONS MOST OTHERS SOLD JAPANESE POLITICS REMAINED THE MARKET'S FOCUS THE OPPOSITION LIBERAL DEMOCRATIC PARTY AGREED TO JOIN A PARLIAMENTARY CONFERENCE COMMITTEE TO TRY TO WORK OUT A POLITICALREFORM COMPROMISE BEFORE THE DIET ADJOURNS SATURDAY REJECTION OF THAT REFORM LEGISLATION HAD CAUSED MONDAY'S TUMBLE BUYING AT LOWER LEVELS BY OVERSEAS INVESTORS WAS SPURRED BY A NOMURA RESEARCH INSTITUTE STRATEGIST'S REPORT THAT THE MARKET'S WEAKNESS FROM THE POLITICALREFORM LEGISLATION'S FAILURE PROVIDED A BUYING OPPORTUNITY ARBITRAGERS BOUGHT HEAVILY SELLING JAPANESE GOVERNMENT BOND FUTURES TO BUY NIKKEI FUTURES IN THE LAST HALFHOUR OF TRADING WHEN THE NIKKEI SCORED ABOUT HALF ITS GAINS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 374 POINTS OR 11 TO 34440 ALSO THE INTRADAY LOW MARKING THE BIGGEST ONEDAY DROP IN TWO WEEKS THE FT 30STOCK INDEX SLUMPED 252 POINTS TO 26462 VOLUME WAS 9849 MILLION SHARES COMPARED WITH 8002 MILLION SHARES A DAY EARLIER SPORADIC EARLY SELLING SNOWBALLED IN THE AFTERNOON TRIGGERED BY NEW YORK STOCKS' EARLY DECLINES THE LONDON MARKET ALSO WAS AFFECTED BY NEWS REPORTS ABOUT POTENTIAL EFFECTS OF COMING BRITISH TAX INCREASES FOLLOWING THE MARKET'S RECENT SHARP GAINS MANY DEALERS WERE SHORT OF STOCK AND WANTED AN OPPORTUNITY TO TAKE PRICES LOWER SO THEY COULD PICK UP SOME SHARES SUCH DEALERS HAVE BEEN CAUGHT BY SURPRISE BY THE EXTENT OF THE GAINS AND BEEN SCRAMBLING FOR STOCK TO COVER SHORT OR OVERSOLD POSITIONS PRICES FELL ACROSS THE BOARD SECTORS HIT HARDEST WERE BANKING OIL RETAILING AND PHARMACEUTICALS IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 4677 POINTS TO 212678 THE REBOUND BEGAN MONDAY AFTER THE MAIN INDEX HAD RETREATED 85 SINCE REACHING A RECORD HIGH OF 226798 ON THE FIRST DAY OF TRADING THIS YEAR INDUSTRIAL STOCKS DID WELL ALONG WITH BANKS AND THE STRONG STABLE US DOLLAR IN FOREIGNCURRENCY DEALINGS HELPED BOOST DOLLARSENSITIVE EXPORT SHARES SUCH AS CHEMICAL COMPANIES IN PARIS STOCKS FINISHED SLIGHTLY HIGHER AFTER GAINS WERE ERODED IN RESPONSE TO EARLY WEAKNESS ON WALL STREET PROFITTAKING ALSO WAS A FACTOR FOLLOWING THE MARKET'S RECENT ADVANCES KILLING EXPECTATIONS FOR HIGHER PRICES TYPICAL ON THE FIRST DAY OF A NEW TRADING ACCOUNT CORPORATE EARNINGS INDICATIONS WERE SAID TO BE MAKING SOME INVESTORS CAUTIOUS IN AMSTERDAM PRICES ENDED MIXED BUT WITH A WEAK TONE ON A WAVE OF LATE SELLING PARTLY BECAUSE OF SOFTER MARKETS ABROAD DECLINES WERE LED BY THE FINANCIAL SECTOR AND PROFITTAKING KNOCKED DOWN MANY BLUE CHIPS IN MILAN STOCKS ROSE ON NEWS OF A PRELIMINARY ACCORD AMONG SOME CENTRIST GROUPS THAT BROUGHT SOME UNITY TO ITALY'S POLITICAL SITUATION WHICH HAS BEEN BADLY FRAGMENTED SINCE A BIG TURN TOWARD FRINGE PARTIES IN LAST MONTH'S MUNICIPAL ELECTIONS THE ITALIAN MARKET ALSO WAS SUPPORTED BY DATA SHOWING THE BALANCE OF PAYMENTS SWUNG TO A SURPLUS IN 1993 FROM A DEFICIT IN 1992 IN MADRID EQUITIES ADVANCED AFTER SPAIN'S CENTRAL BANK LOWERED ITS BENCHMARK LENDING RATE TO 875 FROM 9 IN THE REGULAR 7TO13DAY REPURCHASE TENDER THIS SURPRISED THE MARKET WHICH HAD EXPECTED THE BANK TO WAIT FOR THE GERMAN CENTRAL BANK TO MOVE ON RATES FIRST IN STOCKHOLM PRICES DROPPED SHARPLY IN MODERATE TRADING MAINLY BECAUSE OF BIG LOSSES IN THE TELECOMMUNICATIONS SECTOR AS WELL AS RETREATS BY DRUG ISSUES STEMMING FROM POOR PERFORMANCES BY PHARMACEUTICALS IN OTHER MAJOR BOURSES IN ZURICH SHARES CLIMBED LIFTED BY BARGAINHUNTING AMONG BANK CHEMICAL AND OTHER BLUECHIP ISSUES IN MEXICO CITY EQUITIES GAVE UP 13 PULLED DOWN FROM RECORD HIGHS BY PROFITTAKING IN SYDNEY STOCKS EASED WITH LOSSES REINED IN BY LOWERTHANEXPECTED AUSTRALIAN INFLATION FIGURES AND SOME STABILITY IN THE TOKYO STOCK MARKET IN HONG KONG PRICES FINISHED BROADLY LOWER SPARKED BY WEAKNESS A DAY EARLIER IN STOCKS THAT ALSO TRADE IN OVERSEAS MARKETS SUCH AS LONDON HONG KONG ACTIVITY WAS LED MAINLY BY PRICES OF JANUARY STOCKINDEX FUTURES CONTRACTS WHICH HAVE BEEN ACTIVE AHEAD OF THEIR EXPIRATION FRIDAY FOREIGN INVESTORS ALSO DUMPED STOCKS LATE IN THE SESSION IN SYMPATHY WITH SOME WEAKER MARKETS IN THE REGION IN SINGAPORE SHARES OPENED LOWER AND HEADED STEADILY DOWN TO FINISH WITH A 27 LOSS WEAK SENTIMENT WAS SAPPED FURTHER WHEN BUYING FROM THE PREVIOUS SESSION FAILED TO FOLLOW THROUGH AND INSTITUTIONAL INVESTORS SOLD HEAVILY AND IN KUALA LUMPUR EQUITIES PLUNGED ACROSS THE BOARD ENDING 5 LOWER AFTER PANICKY SELLING BY INVESTORS WHO FEARED A FURTHER SLIDE IN PRICES BOTH THE SINGAPORE AND MALAYSIAN BOURSES CORRECTED HEAVILY EARLY THIS MONTH AND HAVE SINCE CONSOLIDATED BROADLY IN TAIPEI STOCKS ALSO OPENED WITH LOSSES AND CONTINUED DECLINING THROUGHOUT THE SESSION ENDING WITH A 21 DROP TRADING WAS SLUGGISH AS MANY INVESTORS STAYED ON THE SIDELINES AWAITING A LOOSENING OF THE MONEY SUPPLY BY THE TAIWAN GOVERNMENT WHICH HAS A CONSERVATIVE MONETARY POLICY IN MANILA SHARES FELL IN LIGHT VOLUME HURT BY PROFITTAKING BY PHILIPPINE AND FOREIGN INSTITUTIONS AND IN BANGKOK PROFITTAKING PUSHED STOCKS DOWN ABOUT 1 IN ACTIVE CHOPPY TURNOVER BUT IN SEOUL PRICES ROSE IN ACTIVE DEALINGS SUPPORTED BY RALLIES IN THE BANKING SECTOR 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 9401260135 940126 BUSINESS BRIEF LESLIE FAY COS LOSS TOTALING 85 MILLION REPORTED FOR THIRD QUARTER WOMEN'S APPAREL MAKER LESLIE FAY COS OPERATING UNDER PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE REPORTED A LOSS OF 85 MILLION OR 45 CENTS A SHARE FOR THE THIRD QUARTER ENDED OCT 2 NEW YORKBASED LESLIE FAY WHICH RESTATED ITS FULLYEAR 1992 RESULTS HASN'T RESTATED ITS 1992 QUARTERLY RESULTS AND DIDN'T PROVIDE A COMPARISON WITH THE YEAREARLIER THIRD QUARTER THE COMPANY SAID THE QUARTER INCLUDES REORGANIZATION CHARGES OF 73 MILLION ACCRUED INTEREST EXPENSE OF 55 MILLION AND A TAX BENEFIT OF 24 MILLION PRETAX OPERATING PROFIT WAS 18 MILLION SALES FOR THE QUARTER TOTALED 2007 MILLION FOR THE NINE MONTHS ENDED OCT 2 LESLIE FAY POSTED A LOSS OF 463 MILLION OR 246 A SHARE ON SALES OF 5385 MILLION 9401260134 940126 CORRECTIONS & AMPLIFICATIONS KERR GROUP INC OF LOS ANGELES EXPECTS ITS NET INCOME TO BE BOOSTED BY ABOUT 50 CENTS A SHARE PER YEAR THROUGH 1996 BECAUSE OF COST REDUCTIONS FROM THE COMPANY'S RELOCATION OF ITS HOMECANNING LIDMANUFACTURING OPERATIONS FROM CHICAGO TO A NEW FACILITY IN JACKSON TENN IN THURSDAY'S SMALL STOCK FOCUS COLUMN IT WAS INCORRECTLY REPORTED THAT THE 50CENTASHARE BOOST WOULD BE ON A PRETAX BASIS KETCHUM ADVERTISING'S SAN FRANCISCO OFFICE RESIGNED IN NOVEMBER FROM DHL CORP'S ADVERTISING ACCOUNT THURSDAY'S ADVERTISING COLUMN INCORRECTLY STATED THAT KETCHUM HAD BEEN FIRED FROM THE BUSINESS THE ALLIANCE AIRPORT IN FORT WORTH TEXAS IS UNDER THE DIRECTION OF THE FORT WORTH CITY COUNCIL A HEADLINE IN THE DEC 17 EDITIONS INCORRECTLY STATED THAT THE AIRPORT WAS OWNED BY ROSS PEROT THE ARTICLE WAS ABOUT FEDERAL EXPRESS CORP'S SELECTION OF ALLIANCE AIRPORT AS ITS SOUTHWESTERN HUB A MOVE THAT COULD BOOST THE FORTUNES OF A PROJECT LINKED TO THE FAMILY OF MR PEROT A REPORT BY THE US PAPER INDUSTRY SAID THAT THE WORLD TRADING AGREEMENT NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE GENERALLY MEETS THE INDUSTRY'S OBJECTIVES BUT THAT THE INDUSTRY STILL HAS SOME RESERVATIONS AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE PAPER INDUSTRY OPPOSES THE ACCORD MOODY'S INVESTORS SERVICE INC PLACED THE CREDIT RATINGS OF CONSOLIDATED EDISON CO OF NEW YORK UNDER REVIEW FOR POSSIBLE DOWNGRADES IN PART OVER CONCERNS ABOUT THE COMPANY'S ABILITY TO IMPROVE DEBTPROTECTION MEASURES IN FRIDAY'S CREDIT RATINGS COLUMN IT WAS INCORRECTLY STATED THAT MOODY'S WAS CONCERNED ABOUT THE COMPANY'S ABILITY TO MAKE ITS INTEREST PAYMENTS ON DEBT 9401260132 940126 SEC HEEDS CLAIMS THAT MUNI DEALERS HIDE POLITICAL GIFTS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A KANSAS SECURITIES DEALER'S ALLEGATIONS THAT BIG OUTOFSTATE SECURITIES FIRMS HIDE POLITICAL GIFTS BY ROUTING THEM THROUGH LAWYERS APPARENTLY HAS ATTRACTED THE ATTENTION OF THE SECURITIES AND EXCHANGE COMMISSION THE ALLEGATIONS WERE DESCRIBED IN A COMMENT LETTER SUBMITTED TO THE MUNICIPAL SECURITIES RULEMAKING BOARD IN CONNECTION WITH ITS INITIATIVE TO END PAY TO PLAY CONTRIBUTIONS THAT MUNI DEALERS MAKE TO STATE AND LOCAL POLITICIANS TO WIN BOND BUSINESS THE SEC WHICH MUST APPROVE THE RULE BEFORE IT TAKES EFFECT IS EXPECTED TO PUBLISH THE PROPOSED RULE FOR COMMENT THIS WEEK RAY REED JR PRESIDENT OF FIRST SECURITIES CO OF KANSAS TOLD THE MSRB IN HIS LETTER IN KANSAS AND WE ARE A RATHER RURAL STATE THE LARGE EASTERN DEALERS CONTINUALLY EMPLOY COUNSEL TO MAKE THEIR CONTRIBUTIONS AND ENHANCE THEIR LEGAL FEES BY THE AMOUNT OF THE CONTRIBUTION MR REED WHO SAID THIS PRACTICE CAN'T BE STOPPED SAID THAT IF I WANT TO MAKE ANY POLITICAL CONTRIBUTIONS I DO IT THROUGH AN ATTORNEY AND I DEFY ANYONE TO ASK ATTORNEYS TO CONSOLIDATE THEIR CLIENT INFORMATION FOR YOUR INSPECTION HE COULDN'T BE REACHED TO COMMENT YESTERDAY THE TYPE OF SITUATION DESCRIBED BY MR REED WAS APPARENTLY ADDRESSED MONDAY BY SEC CHAIRMAN ARTHUR LEVITT IN A SPEECH IN NEW YORK MR LEVITT INDICATED THAT HIS AGENCY IS LIKELY TO LOOK INTO ALLEGATIONS OF SHAM TRANSACTIONS AND REIMBURSEMENTS TO CONCEAL THE EXTENT OF POLITICAL CONTRIBUTIONS IN THE MUNICIPALBOND MARKET MR LEVITT WHO SAID HE FULLY SUPPORTS THE DIRECTION THE MSRB HAS TAKEN STATED THAT ELIMINATING CONFLICTS INHERENT IN DIRECT CHECKS TO CAMPAIGN WAR CHESTS' MAY BE AN EMPTY GESTURE IF THOSE SAME CHECKS ARE HANDED OVER TO WELLHEELED CONSULTANTS WHO TRADE IN GOVERNMENT INFLUENCE THE SEC CHIEF ADDED I CAN ASSURE YOU THAT WE WILL NOT IGNORE THE USE OF ADVISERS AND CONSULTANTS AS WE PURSUE THIS ISSUE IN THE SPEECH WHERE HE VOWED A STRONG ENFORCEMENT PRESENCE TO INCREASE INVESTOR CONFIDENCE IN THE INTEGRITY OF THE MUNI MARKET MR LEVITT ALSO NOTED ALLEGATIONS ABOUT OFFERINGS THAT LACK ECONOMIC MERIT OR THAT MISREPRESENT THE TAX STATUS OF THE BONDS CHIEFLY AT ISSUE HERE ARE MUNICIPAL SECURITIES THAT WERE SOLD TO REAP FAT FEES AND ARBITRAGE PROFITS BY INVESTING BOND PROCEEDS IN HIGHERYIELDING OBLIGATIONS RATHER THAN TO FINANCE THE PROJECTS FOR WHICH THE BOND OFFERINGS OSTENSIBLY WERE INTENDED SECURITIES DEEMED BY THE INTERNAL REVENUE SERVICE TO BE ARBITRAGE BONDS BECOME TAXABLE EVEN THOUGH THEY WERE SOLD TO INVESTORS AS TAXEXEMPT SECURITIES THE IRS HAS STEPPED UP ITS OWN MUNI ENFORCEMENT EFFORTS AND HAS BEGUN TO COORDINATE THOSE EFFORTS WITH THE SEC THE POTENTIAL INTERPLAY BETWEEN TAX AND SECURITIES LAWS IN THE MUNI ARENA HAS LONG BEEN RECOGNIZED BUT TO DATE HAS GENERATED LITTLE IN THE WAY OF COORDINATED ENFORCEMENT ACTION 9401260131 940126 IBM POSTS NET OF 382 MILLION FOR 4TH QUARTER RESULTS DISAPPOINT INVESTORS SHOWING SALES MARGINS NEED TO BE IMPROVED BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP REPORTED ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR BUT IT MANAGED TO DISAPPOINT WALL STREET WITH LOWERTHANANTICIPATED EARNINGS AND AN UNEXPECTED DECLINE IN SALES IBM REPORTED FOURTHQUARTER NET INCOME OF 382 MILLION OR 62 CENTS A SHARE REBOUNDING FROM A YEAREARLIER NET LOSS OF 546 BILLION ON HUGE RESTRUCTURING CHARGES THE COMPANY WHICH IS BASED IN ARMONK NY THUS POSTED ITS FIRST QUARTERLY NET INCOME SINCE THE SECOND QUARTER OF 1992 SIGNALING THAT TWO YEARS OF BIG CHARGES AND RESTRUCTURING MAY FINALLY BE TAKING HOLD JEROME B YORK CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW THAT HE EXPECTS AT LEAST A BREAKEVEN FIRST QUARTER FOR THIS YEAR AND THAT PROFIT MARGINS AND REVENUE AFTER STEADY DETERIORATION WILL REMAIN LEVEL OR INCREASE SLIGHTLY BUT IBM'S EARNINGS OF 62 CENTS A SHARE FELL SHY OF WALL STREET ANALYSTS' HOPES FOR 75 CENTS A SHARE THE SLIGHT DECLINE IN REVENUE TO 1940 BILLION FROM 1956 BILLION A YEAR EARLIER SENT IBM SHARES TUMBLING INITIALLY DOWN MORE THAN 5 IN THE FIRST HALF HOUR AFTER THE EARNINGS REPORT THE STOCK LATER RECOVERED CLOSING AT 5825 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE RESULTS HAD A SOBERING EFFECT POUNDING HOME THE MESSAGE THAT BIG BLUE'S LARGER CHALLENGE OF INCREASING REVENUE AND RESTORING PROFIT MARGINS STILL LIES AHEAD OVERALL IT'S A GOOD QUARTER SAID ROBERT DJURDJEVIC OF ANNEX RESEARCH IN PHOENIX BUT I WOULDN'T RECOMMEND PEOPLE AT THIS STAGE SUDDENLY BECOME EUPHORIC ABOUT IBM INDEED IBM'S MR YORK WARNED ANALYSTS THAT MUCH WORK REMAINS TO BE DONE THE BATTLESHIP IS STARTING TO TURN AND SAIL IN THE RIGHT DIRECTION BUT WE REALIZE WE HAVE ONE HELL OF A LOT OF WORK TO DO MR YORK TOLD ANALYSTS IN A PRIVATE SESSION THIS AIN'T A CANDY STORE ON MAIN STREET AND IT WON'T BE TURNED AROUND IN ONE OR TWO QUARTERS MR YORK SAID HE IS CONSERVATIVELY PLANNING ON FLAT REVENUE FOR THIS YEAR AND IS SETTING BUDGETS ACCORDINGLY SALES OF PERSONAL COMPUTERS AND WORKSTATIONS SHOULD MAKE UP FOR MAINFRAME REVENUE DECLINING BY HALF THIS YEAR MR YORK SAID IN ADDITION IBM WILL LOSE ANOTHER 2 BILLION IN REVENUE AS A RESULT OF THE PENDING SALE OF ITS FEDERAL SYSTEMS DIVISION WHICH PUTS TOGETHER COMPUTER SYSTEMS FOR THE FEDERAL GOVERNMENT ON THE EXPENSE SIDE MR YORK SAID HE AND HIS TEAM CUT 28 BILLION OUT OF IBM'S EXPENSES IN 1993 AND PLAN ON TAKING OUT ANOTHER 3 BILLION THIS YEAR THAT HE ADDED SHOULD BE ENOUGH TO OFFSET CONTINUED PROFIT DECLINE FROM THE LOSS OF MAINFRAME SALES IN A PLANNING ERROR THAT MR YORK SAID WAS COMPLETELY UNDERSTANDABLE IBM ACTUALLY HAS BACK ORDERS FOR MAINFRAMES DUE TO AN UNEXPECTED SUDDEN DEMAND LATE LAST YEAR THAT MEANS FOURTHQUARTER REVENUE ACTUALLY COULD HAVE BEEN HIGHER THAN IT WAS HAD IBM BEEN ABLE TO FILL ALL MAINFRAME ORDERS REVENUE OVERALL IN 1993 WAS HURT BY DETERIORATING PRICES ON BOTH HIGHEND AND LOWEND PRODUCTS AS WELL AS BY SLOW SALES IN EUROPE AND JAPAN INCREASES IN UNIT VOLUMES ALMOST MADE UP THE DIFFERENCE BUT CURRENCY TRANSLATIONS IN THE END RESULTED IN A DECLINE MR YORK SAID OVERALL HARDWARE SALES IN THE FOURTH QUARTER FELL 54 FROM A YEAR EARLIER DESPITE STRONG SALES GROWTH OF 35 IN PCS AND A 4 RISE IN SALES OF RS/6000 WORKSTATIONS THE OVERALL DECLINE WAS CAUSED BY SLIDES IN MAINFRAME SALES WHICH DROPPED 30 AND IN SALES OF THE MIDRANGE AS/400 LINE WHICH DECLINED 10 THE GREATEST REVENUE INCREASE CAME FROM SERVICE SALES WHICH ROSE 32 OVER THE YEAREARLIER PERIOD TO 32 BILLION BUT SOFTWARE REVENUE DECLINED 38 BASED ON FOURTHQUARTER RESULTS IBM HASN'T TURNED AROUND THE COST SIDE OF THE EQUATION EITHER THE COMPANY'S GROSS PROFIT EQUAL TO REVENUE LESS THE COST OF GOODS SOLD DECLINED 35 IN THE QUARTER AND ITS GROSS PROFIT MARGIN DROPPED MORE THAN A FULL PERCENTAGE POINT TO 382 COMPARED WITH A YEAR EARLIER THAT IS DOWN SHARPLY FROM A MARGIN OF 55 IN 1990 BUT MR YORK SAID HE LOOKS FOR STABILITY THIS YEAR THE CHIEF FINANCIAL OFFICER ALSO SAID THAT LOUIS V GERSTNER JR IBM'S CHAIRMAN WILL PROVIDE WALL STREET WITH SOME INSIGHT INTO THE COMPANY'S STRATEGIC DIRECTION IN MARCH WHEN HE MEETS WITH ANALYSTS FOR THE FIRST TIME AS HEAD OF IBM FOR THE FULL YEAR 1993 IBM EARNED 148 MILLION FROM OPERATIONS BEFORE TAXES AND RESTRUCTURING CHARGES AFTER THE 89 BILLION CHARGE TAKEN IN THE SECOND QUARTER IBM HAD A FULLYEAR NET LOSS OF 810 BILLION COMPARED WITH A NET LOSS AFTER A CHANGE IN ACCOUNTING PRINCIPLES OF 496 BILLION IN 1992 WORLDWIDE REVENUE FOR 1993 DECLINED 28 TO 627 BILLION FROM 645 BILLION IN 1992 IBM'S WORLDWIDE WORK FORCE NOW NUMBERS 256000 A DECLINE OF 45000 FROM 1992 AN ADDITIONAL 10000 EMPLOYEES WILL LEAVE IBM AFTER THE SALE OF THE FEDERAL SYSTEMS DIVISION WHICH IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER 9401260130 940126 FINANCING BUSINESS GENEVA STEEL GENEVA STEEL SAID IN VINEYARD UTAH THAT IT HAS AMENDED ITS PREVIOUSLY FILED REGISTRATION STATEMENT COVERING A PUBLIC OFFERING OF SENIOR NOTES DUE IN 2004 THE INTEGRATED STEEL MAKER SAID THE AMENDMENT INCREASES THE SIZE OF THE OFFERING TO 190 MILLION FROM 125 MILLION GENEVA EXPECTS TO USE PROCEEDS TO REFINANCE THE COMPANY'S PRIVATELY PLACED SENIOR AND SUBORDINATED TERM DEBT AND FOR CAPITAL EXPENDITURES AND OTHER GENERAL CORPORATE PURPOSES 9401260129 940126 ENTERPRISE SMALL BUSINESS SEES VIRTUE IN CONGRESSIONAL RESTRAINT AGENDA SEEKS TO CURB PLANS FOR HEALTH CARE ENVIRONMENT WORKPLACE SAFETY BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SMALL BUSINESS IS SENDING AN URGENT PLEA TO THE NATION'S LAWMAKERS RESTRAIN YOURSELF AS CONGRESS GETS BACK TO BUSINESS AFTER PRESIDENT CLINTON'S STATE OF THE UNION ADDRESS LAST NIGHT SMALL BUSINESS HAS SET ITS SIGHTS ON THREE MAJOR LEGISLATIVE GOALS FOR 1994 IN EACH CASE THE IDEA IS TO REIN IN THE GOVERNMENT BY SOFTENING PROPOSED OR EXISTING LAWS THE HEAVIEST SMALLBUSINESS FIRE WILL BE AIMED AT PRESIDENT CLINTON'S HEALTHCAREOVERHAUL PLAN MOST SMALLBUSINESS GROUPS SEEK TO WATER DOWN THE PROPOSAL BY ELIMINATING MANDATORY EMPLOYER CONTRIBUTIONS CONGRESSIONAL HEARINGS ON THE ISSUE OPEN NEXT WEEK SMALL BUSINESSES ARE ALSO PUSHING FOR RELIEF FROM ENVIRONMENTAL REGULATIONS NOTABLY THE 1980 SUPERFUND CLEANUP LAW AND PROPOSED NEW WATERPOLLUTION CONTROLS FINALLY THEY ARE BATTLING AGAINST A MOVE IN CONGRESS TO CRIMINALIZE CERTAIN WORKPLACESAFETY VIOLATIONS SMALLBUSINESS ADVOCATES DON'T EXPECT THE GOING TO BE EASY ON ANY OF THE THREE FRONTS FOR STARTERS MANY ADVOCATES EXPECT PRESIDENT CLINTON TO BE MORE FOCUSED IN HIS SECOND YEAR IN OFFICE AND MORE TENACIOUS IN PROMOTING HIS PROGRAMS WHEN THE PRESIDENT CAME IN HE HAD TO DEAL WITH A LOT OF LEGISLATION LEFT OVER FROM THE BUSH ADMINISTRATION SAYS TOM CATOR A LOBBYIST FOR SEVERAL SMALLBUSINESS GROUPS THIS TIME WE'LL SEE A CLINTON AGENDA TOPPING THAT AGENDA IS MR CLINTON'S PROPOSAL FOR UNIVERSAL HEALTH CARE WHICH WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' MEDICAL COVERAGE MANY SMALLBUSINESS GROUPS LED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STRONGLY OPPOSE AN EMPLOYER MANDATE HEARINGS THAT WILL OPEN IN THE HOUSE WAYS AND MEANS COMMITTEE NEXT WEEK AND IN A SUBCOMMITTEE OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IN LATE FEBRUARY WILL CONSIDER NOT ONLY MR CLINTON'S BILL BUT ALSO PROPOSALS BY OTHERS BOTH DEMOCRATS AND REPUBLICANS WE THINK THOSE TWO COMMITTEES WILL COME UP WITH VERY DIFFERENT PRODUCTS SAYS KIM MCKERNAN A LOBBYIST FOR THE NFIB THE LARGEST GROUP REPRESENTING SMALL BUSINESS THERE ARE ALSO DIFFERENT APPROACHES TO REFORM BETWEEN THE SENATE FINANCE AND LABOR COMMITTEES SHE ADDS SO MANY BELIEVE THEY'LL JUST END UP WITH INCREMENTAL CHANGES LIKE REFORMING THE INSURANCE MARKET AND MEDICAL MALPRACTICE REFORM THE FEDERATION IS PUSHING FOR ALTERNATIVE PROPOSALS BY DEMOCRATIC REP JIM COOPER OF TENNESSEE AND BY GOP SEN JOHN CHAFEE OF RHODE ISLAND THAT DON'T INCLUDE AN EMPLOYER MANDATE SOME SMALL BUSINESSES HOWEVER BACK THE CLINTON PLAN WHICH WOULD SUBSIDIZE HEALTHCOVERAGE COSTS OF SMALL LOWWAGE EMPLOYERS SENATE SMALL BUSINESS COMMITTEE CHAIRMAN DALE BUMPERS EXPECTS THE PRESIDENT'S PLAN TO UNDERGO MAJOR CHANGES AND ENTREPRENEURS SHOULDN'T GET TOO FIXATED ON WHAT IS OUT THERE NOW SAYS AN AIDE TO THE ARKANSAS DEMOCRAT SEN BUMPERS'S PANEL WILL HOLD HEARINGS ON THE PRESIDENT'S BILL NEXT MONTH ON ENVIRONMENTAL ISSUES SMALLBUSINESS OWNERS ARE PUSHING TO ELIMINATE THEIR OPENENDED LIABILITY UNDER THE SUPERFUND LAW FOR FINANCING THE CLEANUP OF HAZARDOUSWASTE SITES USED BEFORE 1980 AND TO SPEED RESOLUTION OF THEIR CLEANUP RESPONSIBILITIES SEN FRANK LAUTENBERG A NEW JERSEY DEMOCRAT HAS SCHEDULED HEARINGS ON SUPERFUND REFORM FOR FEBRUARY JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNSEL THAT REPRESENTS 100 TRADE GROUPS SAYS THE WHITE HOUSE HAS SENT OUT SIGNALS THAT IT WILL CONSIDER ENDING RETROACTIVE LIABILITY FOR THE VERY SMALLEST BUSINESSES OTHER SMALLBUSINESS GROUPS SAY CONGRESS APPEARS SIMILARLY INCLINED THE HILL UNDERSTANDS THAT SMALL BUSINESS IS A BIG FACTOR A BIG PART OF THE PROBLEM THAT MUST BE SOLVED SAYS HARRIET JAMES THE NFIB'S ENVIRONMENTALISSUES LOBBYIST MEANWHILE A BILL TO GIVE THE ENVIRONMENTAL PROTECTION AGENCY THE RIGHT TO TOUGHEN WATERPOLLUTIONCONTROL STANDARDS FOR BUSINESSES IS LIKELY TO DRAW FIRE FROM SOME SMALLBUSINESS GROUPS SUCH AS THE NATIONAL ASSOCIATION OF METAL FINISHERS SMALL COMPANIES OBJECT TO THE TOUGHER RULES PROPOSED IN THE BILL BECAUSE THEY WOULD DICTATE THE KIND OF MATERIALS AND MANUFACTURING PROCESSES THAT COMPANIES COULD USE SAYS WILLIAM SONNTAG THE METAL FINISHERS' LOBBYIST THE GROUP ARGUES FOR RULES THAT GIVE BUSINESSES SOME FLEXIBILITY IN MEETING WATERQUALITY STANDARDS ON THE LABOR FRONT SMALL BUSINESS IS PREPARING TO FIGHT THE PROPOSED OCCUPATIONAL SAFETY AND HEALTH REFORM ACT WHICH HAS A CHANCE OF PASSING THIS YEAR THE MEASURE WOULD ESTABLISH CRIMINAL PENALTIES FOR VIOLATING SOME LABOR DEPARTMENT SAFETY RULES AND WOULD REQUIRE COMPANIES TO ESTABLISH WORKERSAFETY COMMITTEES THIS COULD FORCE SMALL BUSINESSES TO HIRE CRIMINAL DEFENSE ATTORNEYS IT'S JUST MORE PUNISHMENT INSTEAD OF HELP FOR SMALL BUSINESS IN CREATING A SAFER WORKPLACE SAYS THE NFIB'S MS MCKERNAN SMALLBUSINESS GROUPS ALSO PLAN TO OPPOSE AN ATTEMPT TO GET A SENATE VOTE ON STRIKERREPLACEMENT LEGISLATION WHICH WOULD PREVENT COMPANIES FROM REPLACING STRIKING WORKERS THE HOUSE APPROVED A STRIKERREPLACEMENT BILL LAST SUMMER ON OTHER FRONTS SMALL CONTRACTORS ARE FOCUSING ON PROPOSED LEGISLATION TO MODIFY THE WAY THE FEDERAL GOVERNMENT BUYS GOODS AND SERVICES THE BILL WHICH CONGRESS IS LIKELY TO PASS IS DESIGNED TO HELP CONTRACTORS GET MORE INFORMATION BEFORE AND AFTER THEY BID ON GOVERNMENT CONTRACTS AND TO SIMPLIFY THE WHOLE PROCUREMENT PROCEDURE BUT THE AMERICAN SUBCONTRACTORS ASSOCIATION WHICH REPRESENTS MANY SMALL GOVERNMENT CONTRACTORS ARGUES THAT SOME CLINTON ADMINISTRATION PROPOSALS FOR SIMPLIFYING FEDERAL PROCUREMENT COULD HURT SMALL AND MINORITYOWNED COMPANIES ONE OF THE PROPOSALS WOULD END THE REQUIREMENT THAT MAJOR CONTRACTORS SUBMIT PLANS FOR HOW THEY WOULD USE SMALL AND MINORITYOWNED COMPANIES AS SUBCONTRACTORS WE'RE HOPING CONGRESS WILL LISTEN TO OUR CONCERNS SAYS COLETTE NELSON EXECUTIVE DIRECTOR OF THE SUBCONTRACTORS GROUP ADMINISTRATION OFFICIALS SAY A FINAL DECISION HASN'T BEEN MADE ON CHANGING THE PROCUREMENT PROCEDURE THE ADMINISTRATION WANTS TO MAKE THINGS SIMPLER FOR CONTRACTING OFFICERS AND LET BIG COMPANIES KEEP A BIGGER SHARE OF THE WORK INHOUSE CONGRESS ALSO WILL VOTE ON REAUTHORIZING ALL OF THE SMALL BUSINESS ADMINISTRATION'S LOAN PROGRAMS THIS YEAR OFFICIALS SAY SBA ADMINISTRATOR ERSKINE BOWLES MAY HAVE WON SUPPORT FROM PRESIDENT CLINTON FOR A SUBSTANTIAL INCREASE IN FEDERAL DOLLARS COMMITTED TO THE AGENCY'S BASIC LOANGUARANTEE PROGRAM CONGRESS APPROVED FUNDS TO BACK ABOUT 7 BILLION IN LOANS IN THE CURRENT FISCAL 1994 YEAR 9401260127 940126 LEISURE & ARTS THEATER WOMEN CHASE MEN MAN CHASES LINCOLN BY EDWIN WILSON HARTFORD CONN THE WOMEN A 1936 PLAY BY CLARE BOOTH LUCE IS THE STORY OF A GROUP OF RICH SOCIETY LADIES WHO SPEND THEIR LIVES TRYING TO CATCH A MAN PARTICULARLY IF HE IS SOMEONE ELSE'S HUSBAND THOUGH ITS BITCHY DIALOGUE REMAINS AMUSING EVERYONE ASSUMED IT WAS HOPELESSLY DATED EVERYONE THAT IS EXCEPT DIRECTOR ANNE BOGART WHO HAS MOUNTED AN ASTONISHING NEW PRODUCTION AT THE HARTFORD STAGE WITHOUT CHANGING EITHER THE LINES OR THE CHARACTERS SHE HAS LITERALLY REINVENTED THE PLAY THE SET BY LOY ARCENAS IS AN ALLWHITE BARE STAGE ACROSS THE REAR IS A LUCITE WALL WITH A CROSSWALK AND A SPIRAL STAIRCASE ASCENDING INTO THE SPACE ABOVE THE STAGE ITSELF IS EMPTY EXCEPT FOR A BABY GRAND PIANO AT ONE SIDE ALL THE OTHER FURNITURE AND PROPS MOSTLY OF GLASS AND CHROME ARE CARRIED ON BY THE PERFORMERS WHO ARE DRESSED AUTHENTICALLY IN 1930S ATTIRE WITH HATS VEILS GLOVES AND FOX FURS LOOPED AROUND THEIR NECKS MS BOGART HAS ADDED A NARRATORCHORUS IN THE PERSON OF HELEN GALLAGHER WHO INTRODUCES EACH SCENE MS BOGART HAS ALSO INTERPOLATED SIX SONGS FROM THE PERIOD BUT THESE DO NOT FUNCTION LIKE MUSICALCOMEDY NUMBERS UNDERSCORING THE MOOD OR THEME MOST OFTEN THEY MAKE AN IRONIC COMMENT ON THE ACTION OF THE PLAY FOR EXAMPLE TWO OPTIMISTIC UPBEAT SONGS SINGING IN THE RAIN AND FOOLS RUSH IN ARE PERFORMED AT POINTS WHERE THE WOMEN ARE UNDERGOING SEVERE EMOTIONAL TRAUMAS NOT MOMENTS OF CAREFREE LOVE MARY HAINES ELLEN LAUREN IS A CONTENTED WIFE WHO DISCOVERS THAT HER HUSBAND IS HAVING AN AFFAIR WITH A TRASHY FLASHY SHOPGIRL NAMED CRYSTAL ALLEN LAILA ROBINS MARY IS NO MATCH FOR CRYSTAL AND IN SCENES WITH HER FRIENDS WHO BETRAY HER AT EVERY TURN HER MOTHER LYNN COHEN AND HER YOUNG DAUGHTER CAITLIN MITCHELL SHE IS DEVASTATED MS BOGART HAS THE PERFORMERS PLAY THESE SCENES IN DEADLY EARNEST AND THEY ARE EXCEEDINGLY MOVING OTHER SCENES HOWEVER SUCH AS THOSE IN RENO WHERE BORED WOMEN WAIT FOR DIVORCES TO COME THROUGH ARE PLAYED FOR BROAD FARCE SOMEHOW WITH THE PUNCTUATION OF THE SONGS AND INTRODUCTIONS BY MS GALLAGHER IT ALL FITS TOGETHER MIXING THE MUSIC AND THE DRAMA HAS AN UNEXPECTED AND PARTICULARLY STARTLING EFFECT WHEN MARY IS AT A LOW POINT FOUR WOMEN WEARING THEIR 1930S BEST BEGIN SINGING DUKE ELLINGTON'S IN MY SOLITUDE AND THE PLIGHT OF THE CHARACTERS TAKES ON AN ENTIRELY NEW DIMENSION TOWARD THE END OF THE PLAY WHEN SIMILARLY DRESSED WOMEN BREAK INTO CLOSE HARMONY WITH COLE PORTER'S DOWN IN THE DUMPS ON THE 90TH FLOOR THE EMPTY LIVES OF THESE SOCIETY MATRONS COME RESOUNDINGLY INTO FOCUS THESE ARE WOMEN WHO CANNOT ENVISION LIVES WITHOUT MEN THE NOTION OF A SELFRELIANT WOMAN WITH HER OWN IDENTITY AND HER OWN CAREER HAS NEVER DAWNED ON THEM IF THE WOMEN IS A 1930S PLAY RETROFITTED FOR THE 1990S THE AMERICA PLAY BY SUZANLORI PARKS IS A GROUNDZERO 1990S WORK MS PARKS A POET AND WORDMUSICIAN IS FASCINATED WITH QUESTIONS OF HISTORY AND IDENTITY ESPECIALLY AS THEY AFFECT THE AFRICANAMERICAN EXPERIENCE AND SHE EXPRESSES THAT INTEREST IN UNMISTAKABLY AVANTGARDE TERMS THE STORY OF THE AMERICA PLAY WHICH IS BEING GIVEN ITS PREMIERE AT THE YALE REPERTORY THEATRE IN NEW HAVEN CONCERNS AN AFRICANAMERICAN GRAVE DIGGER REGGIE MONTGOMERY WHO HAS A PHYSICAL RESEMBLANCE TO ABRAHAM LINCOLN HE BECOMES OBSESSED WITH LINCOLN GIVES UP HIS DIGGING CAREER LEAVES BEHIND HIS WIFE GAIL GRATE AND FIVEYEAROLD SON MICHAEL POTTS AND SETS OUT ACROSS THE COUNTRY PORTRAYING LINCOLN IN A SORTOF ONEMAN SHOW HE REFERS TO HIMSELF AS THE FOUNDLING FATHER AND IN HIS PERFORMANCES HE STRIKES A PARTICULARLY STRONG CHORD WITH HIS AUDIENCES WHEN HE LETS THEM COME ON STAGE AND REENACT THE SHOOTING OF LINCOLN IN HIS BOX AT FORD'S THEATRE ACT II TAKES PLACE SOME 35 YEARS LATER THE HERO HAS DIED OUT WEST AND HIS WIFE AND SON SET OUT TO FIND HIS REMAINS AND GIVE HIM A PROPER BURIAL THE STORY OF THE AMERICA PLAY IS TOLD IN A MANNER FREQUENTLY ENCOUNTERED IN EXPERIMENTAL THEATER ACT I IS A MONOLOGUE BY MR MONTGOMERY AND ACT II IS A SERIES OF VIGNETTES AND TABLEAUS NOT UNLIKE THOSE FAVORED BY ROBERT WILSON ACTIONS ARE REPEATED AND INDIVIDUAL MOMENTS HELD UP FOR CLOSE SCRUTINY INTERSPERSED AMONG SCENES WITH THE WIFE AND SON ARE BRIEF INTERLUDES FROM OUR AMERICAN COUSIN THE PLAY BEING PRESENTED AT FORD'S THEATRE THE NIGHT LINCOLN WAS SHOT THE ENTIRE PIECE HAS BEEN SENSITIVELY DIRECTED BY LIZ DIAMOND WHO HAS COLLABORATED WITH MS PARKS ON OTHER PLAYS IT IS NOT AN EASY PLAY TO REALIZE ON STAGE MS DIAMOND WISELY FOCUSED ON VARIOUS CENTRAL METAPHORS THAT GIVE THE PLAY A THEMATIC SHAPE WHERE IT LACKS A CONVENTIONAL SKELETON OF SEQUENTIAL PLOT DIGGING IS ONE OF THESE CONTROLLING TROPES THE FOUNDLING FATHER REMEMBER WAS ORIGINALLY A GRAVE DIGGER ON HIS HONEYMOON HE AND HIS WIFE HAD VISITED A THEME PARK THE GREAT HOLE OF HISTORY THEY STOOD ON THE EDGE OF A VAST CRATER AND VIEWED SCENES FEATURING FAMOUS PEOPLE OF THE PAST AT THE END OF HIS LIFE THE FOUNDLING FATHER DUG A SIMILAR CRATER OUT WEST HOPING TO BURY THE ARTIFACTS OF HIS OWN LIFE IT IS HERE THE WIFE AND SON DIG IN THE LAST ACT AS THEY ATTEMPT TO DISCOVER THE TRAIL OF THEIR LOST HUSBAND AND FATHER DESPITE THEIR PERVASIVENESS HOWEVER THE POINT OF THESE MANY EXCAVATIONS IS NOT ENTIRELY CLEAR THE SIGNIFICANCE OF ANOTHER MAJOR THEME FOLLOWING ANOTHER PERSON'S FOOTSTEPS IS MORE OBVIOUS THE FOUNDLING FATHER ATTEMPTS TO RETRACE LINCOLN'S STEPS AND HIS WIFE AND SON IN TURN HOPE TO FOLLOW HIS PATH THERE APPEARS TO BE A MORAL LESSON HERE FOR BLACK AMERICANS FOLLOWING LINCOLN AS GREAT A HERO IN THE STRUGGLE FOR BLACK EQUALITY AS HE MAY BE IS NO SUBSTITUTE FOR BLAZING YOUR OWN TRAIL MS PARKS IS A HIGHLY ORIGINAL AND TALENTED WRITER AND THE AMERICA PLAY IS BOTH ARRESTING AND PROVOCATIVE AT THE SAME TIME IT REMAINS A DIFFICULT PIECE ENIGMATIC AND AT TIMES OPAQUE STILL THIS IS PRECISELY THE KIND OF WORK A THEATER LIKE THE YALE REP SHOULD BE PRESENTING PARTICULARLY AT A TIME WHEN OTHER REGIONAL THEATERS ARE INCREASINGLY UNADVENTUROUS BOTH THE WOMEN AND THE AMERICA PLAY RUN THROUGH FEB 5 9401260126 940126 TEXAS JOURNAL TEXAS MUTUAL FUNDS RETURNS ARE IN AND THEY'RE LOUSY THANKS TO HIGH COSTS AND SCARCITY OF TALENT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL THEY SAY EVERYTHING'S BIGGER IN TEXAS BUT TO LOOK AT THE LONGTERM RETURNS CHALKED UP BY TEXASBASED MUTUAL FUNDS YOU WOULD SWEAR THIS WAS RHODE ISLAND FOR THE PAST FIVE AND 10YEAR PERIODS MOST TEXAS EQUITY FUNDS UNDERPERFORMED THEIR NATIONAL PEER GROUPS ACCORDING TO AN ANALYSIS FOR TEXAS JOURNAL BY LIPPER ANALYTICAL SERVICES INC A SUMMIT NJ PUBLISHER OF MUTUALFUND DATA WHATEVER THE CATEGORY FEW OF THE ROUGHLY 80 FUNDS BASED HERE HAVE BEEN LONGTERM STANDOUTS AND IN MANY CASES THEIR PERFORMANCE HAS BEEN DOWNRIGHT PUNY CONSIDER AMERICAN CAPITAL ASSET MANAGEMENT INC'S GROWTH & INCOME FUND ALTHOUGH THE HOUSTON FUND'S AIM IS LONGTERM GROWTH ITS 190 CUMULATIVE RETURN FOR THE DECADE ENDED DEC 31 TRAILED ITS GROWTHFUND PEER GROUP BY ABOUT 50 PERCENTAGE POINTS HOUSTONBASED TEXAS COMMERCE BANCSHARES INC'S BALANCED FUND HAS LOOKED SIMILARLY ANEMIC WITH FIVEYEAR RETURNS OF 66 COMPARED WITH 88 FOR THE COMPARABLE LIPPER INDEX AND CAPSTONE ASSET MANAGEMENT INC'S US TREND FUND ALSO OUT OF HOUSTON TRAILED LIPPER'S GROWTHFUND INDEX BY MORE THAN 51 POINTS FOR THE 10YEAR PERIOD FOR TEXANS SUCH NUMBERS ARE MORE THAN A BLOW TO STATE PRIDE THEY'RE ALSO A BLOW TO THEIR WALLETS THAT'S BECAUSE ASIDE FROM A FEW NATIONALLY KNOWN MUTUAL FUNDS BASED HERE MOST TEXAS FUNDS GET THEIR MONEY FROM TEXANS SO WHY THE LACKLUSTER PERFORMANCE FOR STARTERS TEXAS HOSTS A LARGE NUMBER OF SMALL FUNDS WHOSE TINY ASSET BASES MEAN THEIR OVERHEAD IS RELATIVELY HIGH CUTTING INTO RETURNS SOME FUND MANAGERS ALSO SAY THEY DON'T AIM FOR THE FRONT OF THE PACK OPTING INSTEAD FOR LESSRISKY MORESTABLE INVESTMENTS AND CRITICS ARGUE THAT TEXAS FUNDS HAVE A HARD TIME ATTRACTING TOPRATE MONEY MANAGERS WHO INSTEAD GRAVITATE TOWARD MUTUALFUND MECCAS IN NEW YORK BOSTON AND PHILADELPHIA FOR WHATEVER REASONS THERE JUST HASN'T BEEN A LOT OF TALENT RUNNING TEXAS FUNDS SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO THIS DOESN'T MEAN THAT ALL TEXAS EQUITY FUNDS HAVE BEEN ROTTEN PERFORMERS SOME HAVE FARED WELL AND MANY OTHERS ARE IMPROVING INDEED IF YOU LOOK AT 1993 RETURNS ALONE THE PICTURE FOR TEXAS FUNDS IMPROVES SIGNIFICANTLY FOR EXAMPLE USGOLD SHARES A FUND MANAGED BY UNITED SERVICES ADVISORS INC OF SAN ANTONIO WAS THE SECONDBEST FUND IN THE COUNTRY LAST YEAR WITH A 124 RETURN ACCORDING TO LIPPER BUT A YEAR DOESN'T A MUTUALFUND STAR MAKE OVER THE FIVEYEAR PERIOD ENDED IN DECEMBER USGOLD SHARES RANKED AS THE SEVENTHWORST FUND IN THE COUNTRY WITH A TOTAL RETURN OF LESS THAN 1 OVER 10 YEARS THE FUND WAS FOURTH FROM THE BOTTOM SURE THERE WAS AN EXTENDED BEAR MARKET IN GOLD BUT LIPPER'S GOLD INDEX STILL MANAGED A CUMULATIVE 43 GAIN OVER THE FIVEYEAR PERIOD THUS FIVE AND 10YEAR NUMBERS OFFER A MORE MEANINGFUL GLIMPSE OF FUND PERFORMANCE AN INDICATION OF HOW WELL MANAGERS BATTLED A CHANGING ECONOMY BOOMING AND BUSTING INDUSTRIES AND BOTH THE MINIBEAR MARKET OF 1990 AND THE OCTOBER 1987 CRASH A KEY PROBLEM FOR TEXASBASED FUNDS IS THAT MOST OF THEM HAVE LESS THAN 200 MILLION IN ASSETS AND MANY DON'T EVEN REACH 20 MILLION THOSE ARE RELATIVELY SMALL NUMBERS IN THE MUTUALFUND GAME AND IT PRESENTS MANAGERS WITH A VARIETY OF CHALLENGES WHEN CONCORDE FINANCIAL CORP OF DALLAS LAUNCHED ITS ONLY FUND VALUE FUND IN 1987 IT COULDN'T FIND LOCAL EXPERTS IN FUND MARKETING OR CUSTODIAL AND LEGAL SERVICES SAYS ELIZABETH FOSTER ANALYST/SECRETARY FOR THE FUND VALUE FUND A GROWTH AND INCOME FUND WITH 126 MILLION IN ASSETS HAD AN AVERAGE ANNUAL RETURN OF 71 FOR THE FIVE YEARS ENDED IN DECEMBER NEARLY HALF THE 133 PEERGROUP AVERAGE TEXAS IS BEHIND THE LEARNING CURVE AND THAT CERTAINLY MAKES IT MORE DIFFICULT FOR US MS FOSTER SAYS THE RESULT IS THAT SMALL OUTFITS SUCH AS CONCORDE OR HERBERT R SMITH INC WHICH RUNS THE AVONDALE TOTAL RETURN FUND OUT OF WICHITA FALLS CAN'T SPREAD OVERHEAD AMONG SEVERAL FUNDS AND THEY CONTRACT OUT FOR MUCH IF NOT ALL OF THEIR BACKOFFICE NEEDS IN THE CASE OF AVONDALE A BALANCED FUND WITH JUST 8 MILLION IN ASSETS AND ABOUT 130 SHAREHOLDERS THE EXPENSES OF RUNNING THE FUND APPROACH 18 MORE THAN DOUBLE THE AVERAGE FOR LARGE BALANCED FUNDS AND IT USED TO BE MUCH WORSE AVONDALE WHICH RETURNED ABOUT 88 ANNUALLY OVER THE PAST FIVE YEARS COMPARED WITH 134 FOR LIPPER'S BALANCEDFUND INDEX HAS TRIMMED ITS COSTS 25 IN RECENT YEARS BY LINKING UP WITH PROFESSIONALLY MANAGED PORTFOLIOS A NEW YORK UMBRELLA GROUP OF SMALL FUNDS THAT NEGOTIATES FOR REDUCED RATES FOR PRINTING ACCOUNTING LEGAL AND OTHER SERVICES ANOTHER HANDICAP FOR THE SMALL TEXAS FUNDS NO DEPTH WITH SMALL FUNDS INVESTORS ARE BUYING ONE PERSON NOT A RESEARCH TEAM SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO WHILE LARGER FUND COMPANIES SUCH AS SAN ANTONIO'S USAA INVESTMENT MANAGEMENT INC EMPLOY A DOZEN OR MORE EQUITYRESEARCH ANALYSTS SMALL FUNDS CAN'T AFFORD SUCH A LUXURY AS SUCH RETURNS CAN SUFFER SIMPLY BECAUSE PORTFOLIO MANAGERS DON'T HAVE TIME TO ANALYZE AS MANY OPTIONS SAYS MR PERRITT THE NEWSLETTER EDITOR SAYS HERBERT SMITH WHO NOT ONLY HEADS UP HIS EPONYMOUS MONEYMANAGEMENT FIRM BUT ALSO SERVES AS AVONDALE'S PORTFOLIO MANAGER AND ITS FUNDAMENTAL AND TECHNICAL ANALYST YOU'RE TALKING TO THE RESEARCH DEPARTMENT BUT SIZE DOESN'T ENTIRELY EXPLAIN TEXAS' DISMAL MUTUALFUND RECORD SOME OF THE BIGGEST AND BESTKNOWN TEXAS MUTUAL FUNDS HAVE FARED POORLY AS WELL FOR INSTANCE GIANT AMERICAN CAPITAL WHOSE NINE EQUITY FUNDS MANAGE MORE THAN 95 BILLION COULD ONLY MUSTER ONE FUND THAT BEAT ITS LIPPER BENCHMARK IN THE PAST DECADE THAT FUND EMERGING GROWTHA FUND WHICH BEAT THE MARKET AVERAGE BY 142 PERCENTAGE POINTS ALAN SACHTLEBEN AMERICAN CAPITAL'S CHIEF INVESTMENT OFFICER FOR EQUITIES SAYS THE COMPANY'S UNDERPERFORMANCE IS PARTLY DUE TO ITS CONSERVATIVE PHILOSOPHY WE DON'T WANT TO SHOOT THE LIGHTS OUT ONE YEAR ONLY TO RISK FALLING ON OUR FACE THE NEXT YEAR HE SAYS YOU LOSE SHAREHOLDERS IN THE WHIPSAW PERHAPS BUT MR SACHTLEBEN ALSO CONCEDES THAT AMERICAN CAPITAL WISHES IT HAD SHOT OUT A FEW MORE LIGHTS THAN IT DID AND HE SAYS IT IS DETERMINED TO TURN THINGS AROUND ONE BRIGHT SPOT AMERICAN CAPITAL'S EQUITY INCOMEA FUND FOR THE FIVE YEARS THROUGH 1988 EQUITY INCOME TYPICALLY SAT IN THE BOTTOM HALF OF MORNINGSTAR'S PERFORMANCE QUARTILE RANKINGS THE FUND ROUTINELY HELD LARGE BETS IN A SINGLE SECTOR A TYPICAL INVESTMENT A 45 STAKE IN MANUFACTURERS HANOVER CORP COUPLED WITH A 4 STAKE IN CHEMICAL BANKING CORP AS A RESULT POOR ECONOMIC NEWS OR THE CRASH OF A STOCK WITHIN A SECTOR COULD AND DID DRAG DOWN LARGE CHUNKS OF THE PORTFOLIO SO IN 1990 THE COMPANY NAMED JAMES GILLIGAN A SECURITIES ANALYST WITH NINE YEARS EXPERIENCE AT AMERICAN CAPITAL AS HEAD OF THE FUND THE 35YEAROLD MR GILLIGAN SPENT HIS FIRST FEW WEEKS TURNING OVER ONETHIRD OF THE PORTFOLIO MOVING OUT OF LARGE FINANCIAL AND UTILITYSECTOR BETS AND TOWARD A MORE DIVERSIFIED AND LESS CONCENTRATED PORTFOLIO OF CONSUMER AND HEALTHCARE STOCKS INCLUDING MCDONALD'S CORP SARA LEE CORP AND HUMANA INC UNDER HIS COMMAND EQUITY INCOME'S PERFORMANCE NEVER HAS SLIPPED BELOW MORNINGSTAR'S SECOND QUARTILE AND OVER THE FIVE YEARS ENDED IN DECEMBER THE FUND BEAT ITS LIPPER INDEX BY NEARLY 11 PERCENTAGE POINTS GOOD SERVICE BUT USAA INVESTMENT MANAGEMENT CO WITH 35 BILLION IN EQUITY ASSETS ALSO HAS GRAPPLED WITH ITS SHARE OF LAGGARD FUNDS TO BE SURE THE COMPANY HAS LONG CULTIVATED A REPUTATION FOR HAVING GOOD SERVICE AND SOME OF THE INDUSTRY'S LOWEST EXPENSE RATIOS WHICH EASE SOME OF THE PRESSURE TO PRODUCE STELLAR RETURNS BUT IN RECENT YEARS THE PERFORMANCE OF SOME FUNDS HAS DETERIORATED EVEN BY USAA'S STANDARDS USAA'S GOLD AGGRESSIVE GROWTH AND CORNERSTONE OFFERINGS ALL TRAILED THEIR RESPECTIVE BENCHMARK INDEXES BY DOUBLEDIGIT PERCENTAGE POINTS FOR THE FIVE YEARS ENDED IN DECEMBER THROUGH 10 YEARS THE COMPANY'S GROWTH FUND TRAILED THE BENCHMARK BY 70 PERCENTAGE POINTS WITH 20/20 HINDSIGHT WE CAN SAY THAT WE WERE INVESTED IN THE WRONG STOCKS IN THE WRONG INDUSTRIES SAYS MICHAEL ROTH PRESIDENT OF THE COMPANY'S MUTUALFUND ARM AN EXAMPLE THE COMPANY'S MUTUALAGGRESSIVE GROWTH FUND'S 38 STAKE IN HEALTHCARE STOCKS IN 1991 THOUGH THAT PROVED BENEFICIAL THAT YEAR THE FUND HELD ON FOR THE ROUND TRIP WHEN THOSE STOCKS BURNED IN 1992 TO BREAK WITH THE PAST USAA PLACED BILL FRIES WHO HAS BEEN WITH USAA AS A STOCK PICKER AND ANALYST FOR 19 YEARS IN CHARGE OF MUTUALAGGRESSIVE ON JAN 1 IN HIS FIRST FEW WEEKS HE HAS COMPILED A LIST OF VALUEORIENTED AND CYCLICAL STOCKS ABOUT A THIRD OF THE PORTFOLIO THAT WILL SUPPLY THE CASH NEEDED TO BRING A GROWTH BENT TO THE FUND WE'RE GOING TO TURN THIS FUND AROUND MR FRIES SAYS HERE'S A LOOK AT THE RETURNS ON SELECTED TEXASBASED MUTUAL FUNDS FOR THE FIVE AND 10 YEARS ENDED IN DECEMBER THE RETURNS ARE COMPARED WITH LIPPER ANALYTICAL SERVICES INC'S INDEXES FOR FUNDS WITH SIMILAR INVESTMENT OBJECTIVES 9401260125 940126 TUESDAY'S MARKETS STOCKS FALL BOND PRICES ALSO DECLINE INVESTORS TAKE PROFITS IN CYCLICAL SHARES DOLLAR FINISHES LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES SLID AS INVESTORS RAKED IN PROFITS FROM HIGHFLYING CYCLICAL STOCKS BOND PRICES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK 1745 POINTS TO 389534 STANDARD & POOR'S 500STOCK INDEX SLIPPED 105 TO 47092 AND THE NASDAQ COMPOSITE INDEX FELL 426 TO 78639 THE INDUSTRIAL AVERAGE WHICH PLUNGED MORE THAN 25 POINTS DURING THE DAY FINISHED BELOW THE 3900 LEVEL ONLY TWO TRADING DAYS AFTER BREAKING THROUGH THE PSYCHOLOGICAL BARRIER INTERNATIONAL BUSINESS MACHINES FOUGHT BACK FROM A 3 1/4 POINTDEFICIT TO FINISH DOWN 3/8 AT 58 1/4 INVESTORS WERE DISAPPOINTED BY IBM'S FOURTHQUARTER EARNINGS WHICH CAME IN SLIGHTLY BELOW ANALYSTS' FORECASTS INVESTORS TOOK PROFITS AND RAN FROM HOT ECONOMICALLY SENSITIVE STOCKS THE MORGAN STANLEY CYCLICAL INDEX SANK 07 BUT HAS A 36 GAIN SO FAR THIS YEAR BY CONTRAST THE CONSUMER INDEX WHICH INCHED UP YESTERDAY IS OFF 2 ON THE YEAR THE INDEX TRACKS GROWTH STOCKS THOMAS MCMANUS A US MARKET STRATEGIST AT MORGAN STANLEY SAID THE RETREAT AMONG CYCLICALS WAS UNDERSTANDABLE IN LIGHT OF THEIR RALLY THIS YEAR BUT FOR 1994 PEOPLE WILL STILL WANT TO TILT THEIR PORTFOLIOS TOWARD COMPANIES THAT BENEFIT FROM THE ECONOMIC RECOVERY MR MCMANUS SAID THE MARKET MAY BE HEADED FOR A FEW MORE DOWN DAYS SAID ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS HE NOTED THAT DECLINING STOCKS FAR OUTNUMBERED ADVANCERS AND THAT THE RATIO OF NEW STOCK PRICE HIGHS TO NEW LOWS WAS POOR BUT HE ADDED THAT INVESTORS SHOULD REMEMBER THAT THE INDUSTRIAL AVERAGE HAS CLIMBED A HEALTHY 38 SINCE THE START OF THE YEAR THIS IS A VERY NORMAL TIME OUT NOT A TOP OUT MR GOLDMAN SAID BOND PRICES FELL AMID A PICKUP IN JANUARY CONSUMER CONFIDENCE AND A SHARP JUMP IN SALES OF PREVIOUSLY OWNED HOMES IN DECEMBER ANALYSTS SAID THE GOVERNMENT'S AUCTION OF 17 BILLION IN TWOYEAR NOTES WENT PRETTY MUCH AS EXPECTED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 042 TO 11341 IN MAJOR MARKET ACTION STOCK PRICES DECLINED VOLUME TOTALED 3261 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1202 ISSUES FELL AND 883 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 634 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17496 MARKS AND 11090 YEN COMPARED WITH 17508 MARKS AND 11170 YEN MONDAY 9401260124 940126 TREASURY PLANS OFFERING TOTALING 252 BILLION WASHINGTON THE TREASURY PLANS TO PAY DOWN 675 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2588 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON MAY 5 AND AUG 4 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794K45 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794M68 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9401260123 940126 AS CLINTON MOVE NEARS ON VIETNAM EMBARGO SENATORS APPLY HEAT WASHINGTON WITH PRESIDENT CLINTON MOVING TOWARD A DECISION ON WHETHER TO LIFT THE TRADE EMBARGO ON VIETNAM SEVERAL LAWMAKERS ARE STEPPING UP EFFORTS TO TRY TO INFLUENCE THE OUTCOME SEN JOHN KERRY D MASS WHO FOLLOWS THE VIETNAM ISSUE CLOSELY AND WHO JUST RETURNED FROM A TRIP THERE SAID YESTERDAY THAT THE TIME HAS COME TO FULLY LIFT THIS EMBARGO BUT SEN ROBERT SMITH R NH WHO ADAMANTLY OPPOSES SUCH A MOVE IS SET TO INTRODUCE AN AMENDMENT OUTLINING EXTENSIVE DISCLOSURES THAT HANOI WOULD HAVE TO MAKE CONCERNING MISSING US SOLDIERS FROM THE VIETNAM WAR BEFORE MR CLINTON CAN LIFT THE 19YEAROLD EMBARGO ADMINISTRATION OFFICIALS SAID THAT MR CLINTON'S TOP ADVISERS HAVE RECOMMENDED THAT THE EMBARGO BE LIFTED BASED ON PROGRESS THE VIETNAMESE HAVE ALREADY MADE AND THAT THE PRESIDENT MAY DECIDE THE ISSUE AS SOON AS NEXT WEEK LAST SEPTEMBER MR CLINTON LOOSENED THE EMBARGO BY PERMITTING US COMPANIES TO BID ON PROJECTS IN VIETNAM THAT ARE FINANCED BY INTERNATIONAL FINANCIAL INSTITUTIONS MR KERRY WHO LAST YEAR HEADED A SPECIAL SENATE COMMITTEE LOOKING INTO THE FATE OF THE UNACCOUNTEDFOR US SOLDIERS SAID DURING A BRIEFING YESTERDAY THAT THE SANCTIONS HAVE BECOME COUNTERPRODUCTIVE HE SAID VIRTUALLY ALL OTHER NATIONS IGNORE THE SANCTIONS AND THEREFORE THE US IS PENALIZING ITSELF MORE THAN VIETNAM WHOSE ECONOMY IS GROWING RAPIDLY FURTHER HE SAID VIETNAM HAS PROVIDED SIGNIFICANT COOPERATION IN THE LAST TWO YEARS IN HELPING TO RESOLVE THE ISSUE 9401260122 940126 CANADIAN PRODUCTION OF MARKET PULP RISES MONTREAL CANADIAN PRODUCTION OF MARKET PULP ROSE 4 IN DECEMBER FROM A YEAR EARLIER WHILE SHIPMENTS ROSE 11 THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 617000 METRIC TONS OF MARKET PULP IN DECEMBER UP FROM 595000 TONS A YEAR EARLIER A METRIC TON IS 220462 POUNDS THE DECEMBER 88 OPERATING RATE WAS UNCHANGED FROM A YEAR EARLIER THE ASSOCIATION REPORTED SHIPMENTS IN DECEMBER ROSE TO 683000 TONS FROM 615000 TONS A YEAR EARLIER CANADIAN PRODUCER INVENTORIES AT THE END OF DECEMBER WERE 547000 TONS A 26DAY SUPPLY COMPARED WITH 613000 TONS A 31DAY SUPPLY IN NOVEMBER MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL 9401260121 940126 MARKETING & MEDIA DISNEY ACHIEVES RECORD PROFIT REVENUE FOR 1ST QUARTER HOMEVIDEO SALES CITED BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO REPORTED RECORD PROFIT AND REVENUE FOR THE FISCAL FIRST QUARTER ENDED DEC 31 BUOYED BY RECORDBREAKING HOMEVIDEO SALES AND INSULATED FROM EURO DISNEY LOSSES THAT ALREADY HAD BEEN WRITTEN OFF NET INCOME CLIMBED 34 TO 3686 MILLION OR 68 CENTS A SHARE FROM 2751 MILLION OR 50 CENTS A SHARE A YEAR EARLIER EXCLUDING THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES REGISTERED LAST YEAR AFTER THE ACCOUNTING CHANGES DISNEY REPORTED A RESTATED NET LOSS IN THE YEARAGO QUARTER OF 964 MILLION OR 18 CENTS A SHARE IN THE FIRST QUARTER OF FISCAL 1993 BEFORE THE ACCOUNTING CHANGES DISNEY RECORDED A 43 MILLION LOSS IN CONNECTION WITH ITS 49 INVESTMENT IN EURO DISNEY SCA LAST NOVEMBER DISNEY TOOK A 350 MILLION OR 40 CENTASHARE CHARGE CHANGING ITS ACCOUNTING AND FULLY RESERVING ITS RECEIVABLES IN THE TROUBLED THEME PARK OUTSIDE PARIS DISNEY WROTE DOWN ITS INVESTMENT IN THE PARK TO ZERO IF DISNEY WINDS UP INVESTING MORE IN EURO DISNEY AS PART OF RENEGOTIATIONS OVER THE REFINANCING OF THE RESORT THE ACCOUNTING AGAIN WILL CHANGE DISNEY SAID ITS LATEST FIRSTQUARTER FIGURES DON'T REFLECT ANY RESULTS RELATED TO ITS EURO DISNEY INVESTMENT THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DISNEY SHARES CLOSED AT 47 OFF 125 CENTS ON VOLUME OF 18 MILLION SHARES FISCAL FIRSTQUARTER REVENUE ROSE 14 TO 273 BILLION FROM 239 BILLION DISNEY'S GAINS WERE SPEARHEADED BY ITS FILMEDENTERTAINMENT UNIT WHICH REPORTED A 45 GAIN IN OPERATING PROFIT TO 3402 MILLION FROM 2354 MILLION EVEN THOUGH IT LACKED A BLOCKBUSTER IN US THEATERS DURING THE QUARTER REVENUE INCREASED TO 143 BILLION FROM 121 BILLION MUCH OF THIS WAS GENERATED BY HOMEVIDEO SALES OF ALADDIN WHICH HAS SOLD MORE THAN 20 MILLION UNITS IN THE US TO MAKE IT THE LARGESTSELLING VIDEOCASSETTE RELEASE ITS PERFORMANCE WAS EVEN MORE IMPRESSIVE GIVEN THAT IT MUST BE COMPARED TO THAT OF LAST YEAR'S VIDEO RELEASE OF BEAUTY AND THE BEAST THE PREVIOUS RECORDHOLDER BUT PERHAPS THE BIGGEST IMPACT CAME FROM THE OVERSEAS HOMEVIDEO RELEASE OF THE JUNGLE BOOK WHICH SOLD NEARLY 15 MILLION UNITS ANALYST RICHARD SIMON OF GOLDMAN SACHS AND CO SAID HE BELIEVES THOSE SALES ADDED 60 MILLION TO 65 MILLION TO OPERATING PROFIT COMPARED WITH LAST YEAR'S INTERNATIONAL RELEASE OF CINDERELLA WHICH SOLD MUCH LESS TICKET SALES FOR ALADDIN OVERSEAS ALSO IMPROVED RESULTS DISNEY'S THEMEPARK RESULTS WERE MORE OR LESS FLAT WALT DISNEY WORLD IN FLORIDA HAD A DECLINE IN ATTENDANCE WHICH THE COMPANY ATTRIBUTED TO A SLOWDOWN IN VISITORS FROM RECESSIONPLAGUED EUROPE THE COMPANY DIDN'T MENTION THE LINGERING EFFECTS OF PUBLICITY ABOUT VIOLENCE AGAINST TOURISTS IN FLORIDA OR THE STRENGTHENED DOLLAR BUT SAID HIGHER PERCAPITA SPENDING AND HOTEL ATTENDANCE PARTLY OFFSET THESE FACTORS DISNEYLAND IN CALIFORNIA CONTINUED TO BENEFIT FROM ITS NEW TOON TOWN ATTRACTION THEMEPARK REVENUE INCREASED 3 TO 7689 MILLION FROM 745 MILLION WHILE OPERATING PROFIT GREW 1 TO 1381 MILLION FROM 1367 MILLION SALES OF CHARACTER MERCHANDISE AND GROWTH IN DISNEY'S RETAIL STORES HELPED CONSUMERPRODUCTS REVENUE TO GROW 22 TO 532 MILLION FROM 4371 MILLION OPERATING PROFIT INCREASED 17 TO 1461 MILLION FROM 1246 MILLION 9401260120 940126 YOUR MONEY MATTERS INVESTMENT STRATEGISTS PEER INTO 1994TEND TO YAWN BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL TRUMPETS PLEASE INVESTMENT STRATEGISTS AT THE NATION'S LEADING BROKERAGE HOUSES HAVE MADE THEIR PREDICTIONS FOR 1994 AND WHAT THEY FORESEE IS ON SECOND THOUGHT SKIP THE TRUMPETS WHAT THEY FORESEE IS A HOHUM YEAR MARKET GURUS AT A DOZEN MAJOR SECURITIES FIRMS TRACKED BY THE WALL STREET JOURNAL AS PART OF A CONTINUING STUDY GENERALLY EXPECT RETURNS OF 8 TO 10 FROM STOCKS MOST OF THEM EXPECT RETURNS OF 5 TO 7 FROM BONDS THIS YEAR AND 3 FROM SAFE SHORTTERM CASH INVESTMENTS SUCH AS MONEYMARKET FUNDS HISTORICALLY THOSE ARE NORMAL RETURNS NEITHER GREAT NOR TERRIBLE THE MORE BEARISH STRATEGISTS STRESS THE MODESTY OF POTENTIAL GAINS AND THE HIGH LEVEL OF STOCKMARKET RISK THOSE IN THIS CAMP INCLUDE DAVID SHULMAN OF SALOMON BROTHERS RAO CHALASANI OF KEMPER SECURITIES AND NEWLY APPOINTED KATHERINE HENSEL OF LEHMAN BROTHERS THEY SUGGEST THAT INVESTORS PUT NO MORE THAN HALF THEIR MONEY IN STOCKS EVEN MANY OF THE BULLS CONCEDE THE POTENTIAL REWARDS MAY NOT BE MOUTHWATERING BUT THEY SAY THE RISK OF A STOCKMARKET DOWNTURN IS SMALL THIS GROUP WHICH INCLUDES PAINEWEBBER'S EDWARD KERSCHNER KIDDER PEABODY'S EASTON RAGSDALE AND GOLDMAN SACHS'S STEVEN EINHORN ADVOCATES STOCK POSITIONS OF CLOSE TO 70 THE BIGGEST BULL IN THIS CROWD IS GREG SMITH OF PRUDENTIAL SECURITIES WHO IS TELLING AGGRESSIVE INVESTORS TO PUT 85 OF THEIR MONEY IN STOCKS HE THINKS THE OVERALL STOCK MARKET COULD RISE 10 THIS YEAR AND AN INDUSTRIALLY ORIENTED PORTFOLIO COULD GAIN A SUCCULENT 15 TO 20 THE AVERAGE BLEND RECOMMENDED BY THE ANALYSTS IN THE JOURNAL STUDY IS STOCKHEAVY 62 AND BONDLIGHT 26 WITH CASH A LITTLE BELOW NORMAL 12 DURING THE PAST SEVEN YEARS ACCORDING TO ROBIN CARPENTER OF CARPENTER ANALYTICAL SERVICES HANOVER NH THE STRATEGISTS' AVERAGE BLEND HAS BEEN ABOUT 54 STOCKS 31 BONDS AND 14 CASH OTHER ASSETS SUCH AS GOLD OR REAL ESTATE HAVE SOMETIMES CREPT IN THE STUDY ESTIMATES HOW AN INVESTOR WOULD DO BY FOLLOWING EACH BROKERAGE HOUSE'S RECOMMENDED BLEND OF STOCKS BONDS AND CASH THE JOURNAL TRACKS THE STRATEGISTS' ADVICE AND ANALYZES IT WITH HELP FROM WILSHIRE ASSOCIATES OF SANTA MONICA CALIF AND CARPENTER ANALYTICAL FORMERLY ECONOMICS OFFICE HERE'S A RUNDOWN ON WHAT THE BIG BROKERAGE FIRMS ARE TELLING CUSTOMERS THESE DAYS THE FIRMS ARE LISTED IN ORDER OF HOW WELL THEIR RECOMMENDED INVESTMENT BLENDS PERFORMED IN THE SURVEY IN 1993 EXCEPT AS NOTED ALL OF THE FIRMS ARE BASED IN NEW YORK PAINEWEBBER MR KERSCHNER HAS LED THE PACK FOR FOUR OF THE SEVEN YEARS COVERED BY THE STUDY HE SAYS EXPERIENCE SUGGESTS THERE'S LITTLE REASON TO FEAR FOR STOCKS TODAY IN THE PAST 40 YEARS THE STOCK MARKET'S HAD 10 DOWN YEARS HE SAYS IN SEVEN OF THE 10 CASES THE MARKET WAS CORRECTLY ANTICIPATING A DECLINE IN CORPORATE EARNINGS THE FOLLOWING YEAR WE DON'T THINK EARNINGS WILL BE DOWN IN 1995 NOT WITH EUROPE ABOUT TO RECOVER AND THE US ECONOMY SO TEPID THAT THE FEDERAL RESERVE BOARD DOESN'T HAVE TO PUT ON THE BRAKE THE OTHER THREE BAD YEARS FEATURED SHARPLY RISING SHORTTERM INTEREST RATES MR KERSCHNER SAYS HE DOESN'T SEE THAT AS LIKELY EITHER THOUGH HE BELIEVES THE FED MIGHT TIGHTEN A TAD HERE KIDDER PEABODY PRODUCTIVITY LOOKS FANTASTIC SAYS MR RAGSDALE AND SOME OF OUR MAJOR TRADING PARTNERS LOOK LIKE THEY'RE STARTING TO TURN THE CORNER ALTHOUGH IT'S A VERY WIDE CORNER HE THINKS CORPORATE PROFITS WILL GROW NICELY ALLOWING STOCKS TO DELIVER A RETURN OF 9 OR SO DESPITE HIGH CURRENT STOCK VALUATIONS HE CONSIDERS BONDS BETTER THAN CASH BUT NOT MUCH BOND PRICES WILL DROOP THIS YEAR AS INTEREST RATES CREEP UP HE BELIEVES GOLDMAN SACHS I THINK 1994 WILL DELIVER LOW DOUBLEDIGIT RETURNS ON STOCKS SAYS MR EINHORN COSTRATEGIST WITH ABBY JOSEPH COHEN AT GOLDMAN SACHS LOW INFLATION CONTINUING FLIGHT BY SMALL INVESTORS FROM BANK CERTIFICATES OF DEPOSIT A 12 RISE IN CORPORATE OPERATING PROFITS AND STABLE OR SLIGHTLY DECLINING INTEREST RATES WILL ALL HELP KEEP THE BULL MARKET ALIVE HE SAYS LEHMAN BROTHERS MS HENSEL SEES THE FED TIGHTENING A LITTLE BIT AS THE ECONOMY STRENGTHENS SHE FIGURES THE RESULTING RISE IN SHORTTERM INTEREST RATES COULD PRECIPITATE A 10 STOCKMARKET SLIDE BUT THAT DIP WOULD BE A BUYING OPPORTUNITY SHE SAYS I CAN'T WAIT I'M SALIVATING AG EDWARDS THE ST LOUIS FIRM INCREASED ITS STOCK ALLOCATION TO 65 IN OCTOBER THE STOCK MARKET HAS BEEN LIKE THE ENERGIZER BUNNY IT JUST KEEPS GOING SAYS RAYMOND WORSECK ECONOMIST AND STRATEGIST DEAN WITTER REYNOLDS STRATEGIST BILL DODGE HAS STUCK WITH HIS CURRENT BLEND 60 STOCKS 25 BONDS 15 CASH FOR 10 MONTHS THE BIGGEST SURPRISE OF 1994 HE SAYS MIGHT BE THAT THE BOND RALLY ROLLS ON PROPELLED BY LOW INFLATION AND LOW OIL PRICES IN STOCKS HE SAYS THE BULL MARKET WITH A BEARD IS STILL ALIVE PRUDENTIAL SECURITIES MR SMITH WHO OFTEN TAKES A BOLD STANCE WITH HIS INVESTMENT MIX RANKS FIRST IN THE STUDY'S FIVEYEAR RANKINGS MOSTLY BECAUSE OF GREAT SHOWINGS IN 1988 AND 1989 I THINK EARNINGS ARE GOING TO BE TERRIFIC THIS YEAR HE SAYS CORPORATIONS HAVE SPENT FOUR YEARS REDUCING COSTS AND FINALLY THEY'RE GOING TO GET SOME REVENUE HE THINKS EUROPE'S ECONOMIES WILL BOUNCE BACK LATE THIS YEAR HELPING US EXPORTS IT SEEMS LIKE EVERYONE THINKS THERE ARE BETTER OPPORTUNITIES OVERSEAS SAYS MR SMITH THE BIG SURPRISE MIGHT BE THAT THE BEST MARKET'S RIGHT HERE AT HOME RIGHT UNDER OUR NOSE SMITH BARNEY SHEARSON SMITH BARNEY TINKERED JUST A BIT LAST QUARTER WITH ITS MIDDLEOFTHEROAD BLEND ADDING A SHADE TO STOCKS AND LIGHTENING UP SLIGHTLY ON BONDS MERRILL LYNCH STEADY AS SHE GOES CHARLES CLOUGH MERRILL LYNCH'S CHIEF STRATEGIST HAS HELD THE SAME BLEND AS MR DODGE 60 STOCKS 25 BONDS 15 CASH SINCE JULY SALOMON BROTHERS MR SHULMAN THINKS STOCKS WILL PROVIDE ABOUT A 5 RETURN THIS YEAR LAST YEAR WE HAD A ONCEINAGENERATION BOND RALLY HE SAYS WE HAD A FRIENDLY FED ALL YEAR AN 18 INCREASE IN OPERATING PROFITS AND A 5 DROP IN THE PRICE OF OIL HE DOESN'T BELIEVE SUCH A FAVORABLE COMBINATION WILL RECUR RAYMOND JAMES & ASSOCIATES AFTER BEING BEARISH AND SUFFERING FOR IT IN THE RANKINGS IT RANKED LAST AMONG 10 FIRMS WITH FIVEYEAR RECORDS RAYMOND JAMES TURNED MORE BULLISH ON STOCKS TWO WEEKS AGO THE ST PETERSBURG FLA FIRM RAISED ITS RECOMMENDED HELPING OF STOCKS TO 70 KEMPER SECURITIES AFTER LEADING THE PACK IN 1992 MR CHALASANI OF KEMPER BROUGHT UP THE REAR IN 1993 TO HIS CREDIT MR CHALASANI URGED THE CHICAGOBASED FIRM'S CLIENTS TO PUT ABOUT 35 OF THEIR MONEY ABROAD IN 1993WISE ADVICE AS IT TURNED OUT MR CHALASANI DOESN'T NECESSARILY EXPECT US STOCKS TO DECLINE THIS YEAR BUT SAYS THE RISK LEVEL IS BUILDING AND INVESTORS ARE COMPLACENT ABOUT IT 9401260119 940126 KODAK DEVELOPS ECONOMYBRAND FILM THAT IS FOCUSED ON LOWPRICED RIVALS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL NOW IT'S EASTMAN KODAK CO'S TURN TO MEET THE CHALLENGE FROM ITS LOWPRICED RIVALS HEAD ON IN A RADICAL AND RISKY MOVE KODAK WILL OFFER ITS FIRST ECONOMYBRAND FILM FUNTIME TO COMPETE WITH PRIVATELABEL KNOCKOFFS AND LOWPRICED COMPETITORS WHILE THE MOVE COULD MUDDY KODAK'S PROUD BRAND IMAGE THE COMPANY SEEMS TO HAVE HAD LITTLE CHOICE IN RECENT YEARS ITS SHARE OF THE HIGHLY PROFITABLE AND COMPETITIVE FILM MARKET HAS DWINDLED TO ABOUT 70 FROM AS HIGH AS 76 FIVE YEARS AGO AS COMPETITORS LIKE FUJI PHOTO FILM CO AND KONICA CORP WOOED CONSUMERS WITH LOWERPRICED VERSIONS THE SUCCESS OF PRIVATELABEL PRODUCTS HAS FORCED MANY LARGE BRAND NAMES FROM RALSTON PURINA CO TO CONAGRA INC TO EITHER OFFER PRIVATELABEL VERSIONS OF PRODUCTS OR LOWER THE PRICE ON THEIR PREMIUM BRANDS KODAK HELD OUT SAYING CONSUMERS WERE WILLING TO PAY EXTRA FOR ITS RESPECTED TECHNOLOGY AND NAME KODAK HAS ALWAYS RESISTED THE IDEA OF AN ECONOMY BRAND SAID KIMBERLY RITRIEVI AN ANALYST WITH LEHMAN BROTHERS BUT BEGINNING THIS SPRING KODAK WILL OFFER TWICE A YEAR IN SPRING OR FALL ITS FUNTIME BRAND IN THE US AND CANADIAN MARKETS THE BRAND IS EXPECTED TO BE PRICED ABOUT 20 LOWER THAN KODAK'S MAINSTAY GOLD PLUS BRAND KODAK WILL LIMIT THE AMOUNT OF FUNTIME IT PRODUCES AND SHIPS TO EACH RETAILER AND ITS SEASONAL PROMOTIONS WILL BE GEARED TOWARD THE TIMES WHEN FILMBUYING ISN'T AS HEAVY AS IT IS DURING THE CHRISTMAS AND SUMMER SEASONS FUNTIME WILL BE OFFERED IN SPEEDS OF 100 AND 200 IN MULTIPACKS OF TWO 24EXPOSURE ROLLS AND ANOTHER OF FOUR ROLLS THREE 24 EXPOSURES ONE 36 EXPOSURES THE FILM WHICH WILL REACH RETAIL SHELVES IN LATE APRIL AND SEPTEMBER FOR TWO TO THREEMONTH SPURTS WILL BE SOLD IN ALL OF KODAK'S OUTLETS INCLUDING MAJOR RETAILERS SUCH AS WALMART STORES INC AND KMART CORP KODAK HAD TRIED TO COUNTER ITS LOWERPRICED RIVALS BY TAKING THE HIGH ROAD DEVELOPING A SUPERPREMIUM FILM CALLED EKTAR FOR PROFESSIONALS AND SERIOUS AMATEUR SNAPSHOOTERS BUT THAT APPROACH APPARENTLY WASN'T QUITE AS SUCCESSFUL AS KODAK MIGHT HAVE HOPED BECAUSE CONSUMERS WEREN'T ABLE TO DISTINGUISH QUALITY NUANCES KODAK SAID ITS EKTAR PREMIUM BRAND WILL BE REMOVED FROM THE MARKET AND REPLACED BY A NEW FILM CALLED ROYAL GOLD WHICH WILL SELL FOR 20 TO 25 MORE THAN GOLD PLUS BUT LESS THAN EKTAR HAD SOLD FOR ROYAL GOLD WILL ALSO OFFER A SMALL INDEXING PRINT ILLUSTRATING ALL PHOTOS FROM EACH ROLL OF FILM TO FACILITATE FINDING NEGATIVES FROM WHICH TO CREATE REPRINTS ROYAL GOLD IS EXPECTED TO BENEFIT FROM BEING UNDER KODAK'S MAINSTAY GOLD UMBRELLA THIS REPOSITIONING IS INTELLIGENT RISKTAKING THAT WILL DRIVE BOTH OUR MARKET SHARE AND EARNINGS SAID ALEXANDER V WASILOV VICE PRESIDENT AND GENERAL MANAGER OF KODAK CONSUMER IMAGING IN THE US AND CANADA REGION IT'S VERY STRATEGIC IN NATURE AND WILL ALLOW US TO BE MORE SELECTIVE IN TARGETING CERTAIN CONSUMER SEGMENTS IN THE FIRST THREE QUARTERS OF 1993 INDUSTRYWIDE FILMPRODUCT SALES ROSE ABOUT 42 IN DOLLARS YET KODAK'S GAIN WAS ONLY 35 WHILE THE GAIN FOR PRIVATELABEL PRODUCTS WAS 9 AND 15 FOR FUJI PHOTO FILM ACCORDING TO MS RITRIEVI OF LEHMAN BROTHERS KODAK SAID THE ROYAL GOLD FILM WILL BE INTRODUCED IN THE SECOND QUARTER REPLACING EKTAR WHICH HAS SEEN SLUGGISH SALES THE NEW ROYAL GOLD FILM WHICH OFFERS RICHER COLOR SATURATION AND SHARPER PICTURES WILL BE OFFERED IN SPEEDS OF 25 100 400 AND 1000 KODAK WILL TOUT ROYAL GOLD AS THE CHOICE FOR CONSUMERS WANTING TO MAKE ENLARGEMENTS FROM NEGATIVES KODAK ANNOUNCED ITS PLAN AT AN ANALYSTS' MEETING LATE YESTERDAY BEFORE TRADING WAS HALTED YESTERDAY ITS SHARES ROSE 25 CENTS TO 4250 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ANALYSTS ARE WARY OF THE MOVES FEARING CONSUMERS WILL SWITCH TO THE LOWERPRICED FUNTIME FROM THE MORE PROFITABLE GOLD PLUS IT'S A DRACONIAN SOLUTION CUSTOMERS WILL BE MORE APT TO STOCK UP ON THE LOWEND FILM AND THEN BUY THE EXPENSIVE STUFF ONLY FOR VERY SPECIAL OCCASIONS LIKE WEDDINGS SAID B ALEX HENDERSON OF PRUDENTIAL SECURITIES INC HOWEVER KODAK BELIEVES FUNTIME WILL ADD SALES DURING OFFSEASONS RATHER THAN CANNIBALIZE ITS GOLD SALES THE COMPANY SAID IT EXPERIMENTED WITH SEASONAL PROMOTIONS THIS YEAR WITH ITS GOLD FILM AND FOUND A MARKET BASIS FOR ITS FUNTIME CONSUMERS TAKE PICTURES FOR DIFFERENT REASONS AT DIFFERENT OCCASIONS AND THE COMPANY HAS SIMPLY DESIGNED FILMS TO MEET THEIR PICTURETAKING HABITS MR WASILOV SAID WE NOW HAVE ROYAL GOLD FILM FOR THOSE VERY SPECIAL MEMORIES THE BIRTH OF A BABY THE GRADUATION SAID MR WASILOV WE CONTINUE TO OFFER GOLD FILM FOR CAPTURING THOSE UNEXPECTED MOMENTS THE BABY SMILING THE FATHER AND SON PLAYING CATCH IN THE BACKYARD AND NOW WE WILL OFFER A SPECIAL PROMOTION TWICE A YEAR FEATURING A MODIFIED VERSION OF GOLD FILM AT A SLIGHTLY LOWER PRICE THAN OUR OTHER FILMS BUT SOME ANALYSTS WORRY ABOUT WHAT WILL HAPPEN SHOULD CUSTOMERS GET HOOKED ON THE LOWERPRICED FUNTIME BRAND AND ARE THEN UNABLE TO FIND IT IN OFFSEASONS IF CONSUMERS TRY THE PRODUCT AND LIKE IT MAY THIS NOT BE AN INCENTIVE FOR CONSUMERS TO EXPERIMENT WITH A YET CHEAPER PRODUCT LIKE PRIVATELABEL WONDERS MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO IF THIS TAKES PLACE THEN THIS STRATEGY WON'T WORK THE POTENTIAL WINNERS IN THAT SCENARIO KONICA AND BAYER AG'S AGFA BRAND BOTH OF WHICH HAVE LONG MARKETED THEMSELVES AS QUALITY BUT LOWPRICED ALTERNATIVES THERE WILL BE AN OPPORTUNITY FOR US AT KONICA SAID PAUL GORDON DIRECTOR OF MARKETING KONICA HE SAID WILL REMAIN PRICECOMPETITIVE WITH THE NEW KODAK PRODUCTS EVEN IF IT MEANS DROPPING KONICA PRICES IT SEEMS LIKE A DESPERATE MOVE TO REGAIN MARKET SHARE NOT A WAY TO MAKE THE INDUSTRY MORE PROFITABLE BUT MR ELLMANN SAID WEAKER COMPETITORS CAN'T WITHSTAND A PRICE WAR WITH KODAK WHICH CONTROLS A HUGE SEGMENT OF THE MARKET AND HAS EXTREMELY LOYAL CHANNELS OF DISTRIBUTION NOT TO MENTION CUSTOMERS SMALLER COMPANIES CAN'T AS READILY WITHSTAND PRESSURES ON PROFITS AND KODAK ISN'T EXPECTED TO RELENT ONCE IT GETS INTO A PRICE WAR HE ADDED IN ADDITION TO ITS NEW FAMILY OF FILM KODAK ANNOUNCED SEVERAL ADDITIONS TO ITS LINE OF CAMEO AND SINGLEUSE CAMERAS AS WELL AS INTRODUCING ITS PHOTO IMPRESSIONS SYSTEM TO ALLOW CUSTOMERS TO PERSONALIZE PICTURE IN STORES BY ADDING TEXT AND GRAPHICS TO PICTURES THE SYSTEM WILL ALSO INCLUDE OTHER EQUIPMENT TO ALLOW CUSTOMERS TO WORK WITH RETAILERS INSTORE TO REMOVE REDEYE PROBLEMS WITH PICTURES AS WELL AS OTHER OPERATIONS TO MAKE REPRINTS AND ENLARGEMENTS WITHIN MINUTES 9401260118 940126 WHO'S NEWS BOYD GAMING CORP BOYD GAMING CORP LAS VEGAS KENNY GUINN 57YEAROLD CHAIRMAN OF SOUTHWEST GAS CORP WAS ELECTED A DIRECTOR OF THIS OWNER OF CASINOS AND HOTELS INCREASING THE BOARD TO SEVEN MEMBERS 9401260117 940126 INTERNATIONAL HONSHU TAKASAKI PLAN A BROAD RANGE OF TIES SPECIAL TO THE WALL STREET JOURNAL TOKYO HONSHU PAPER CO AND TAKASAKI PAPER MFG CO AGREED TO FORM A BROAD RANGE OF BUSINESS TIES IN PRODUCTION AND DISTRIBUTION COMPANY SPOKESMEN SAID HONSHU AND TAKASAKI WILL EACH INVEST ABOUT 1 BILLION YEN 9 MILLION IN THE OTHER'S SHARES HONSHU WILL BECOME THE FOURTHLARGEST SHAREHOLDER OF TAKASAKI A TAKASAKI SPOKESMAN SAID HONSHU IS JAPAN'S THIRDLARGEST PAPER AND PULP MAKER AND HOLDS THE LARGEST SHARE OF THE DOMESTIC MARKET FOR PAPERBOARD TAKASAKI IS A PAPERBOARD MAKER WITH THE 11THLARGEST SHARE IN JAPAN MERGERS IN JAPAN'S PAPER INDUSTRY SEEM TO HAVE BECOME THE ORDER OF THE DAY AS COMPANIES STRUGGLE AGAINST WEAK PRICES AFTER THE MERGER OF JUJO PAPER CO AND SANYO KOKUSAKU PULP CO TO FORM NIPPON PAPER INDUSTRIES CO LAST APRIL TWO OTHER COMPANIES KANZAKI PAPER AND OJI PAPER CO MERGED ON OCT 1 9401260116 940126 WHO'S NEWS APPLIED LASER SYSTEMS APPLIED LASER SYSTEMS GRANTS PASS ORE WILLIAM J YOUNG WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS LASERMAKING COMPANY SUCCEEDING WILLIAM C PATRIDGE WHO REMAINS CHAIRMAN MR YOUNG 51 YEARS OLD WAS MOST RECENTLY PRESIDENT OF VOLKSWAGEN OF AMERICA INC A UNIT OF VOLKSWAGEN AG BASED IN WOLFSBURG GERMANY HE SAID HE RETIRED FROM THAT POSITION LAST APRIL MR PATRIDGE 55 SAID APPLIED LASER PLANS TO ACQUIRE AS MANY AS EIGHT EARLYSTAGE TECHNICAL COMPANIES IN THE NEXT 12 MONTHS 9401260115 940126 BUSINESS BRIEF QUALMED INC MERGER WITH ANOTHER HMO WINS APPROVAL OF HOLDERS QUALMED INC PUEBLO COLO SAID ITS STOCKHOLDERS APPROVED THE COMPANY'S PROPOSED 775 MILLION MERGER WITH CLOSELY HELD HN MANAGEMENT HOLDINGS INC WOODLAND HILLS CALIF BOTH COMPANIES OPERATE HEALTHMAINTENANCE ORGANIZATIONS QUALMED SAID THAT ABOUT 75 OF ITS SHARES OUTSTANDING WERE VOTED IN FAVOR OF THE STOCK MERGER THE COMPANY SAID IT EXPECTS THE TRANSACTION TO BE COMPLETED THIS WEEK FOLLOWING CLEARANCE BY REGULATORS UNDER THE MERGER SHAREHOLDERS OF EACH COMPANY ARE TO RECEIVE STOCK VALUED AT 775 MILLION IN THE COMBINED COMPANY 9401260114 940126 LETTERS TO THE EDITOR IRA WITHDRAWALS YOUR DEC 22 ARTICLE ON IRA WITHDRAWALS CORRECTLY FOCUSED ON DELAYING OR MINIMIZING REQUIRED DISTRIBUTIONS THERE ARE HOWEVER OCCASIONS WHEN RECEIVING DISTRIBUTIONS BEFORE THE NECESSARY PAYOUT DATE CAN ACTUALLY REDUCE THE OVERALL TAX BITE THIS IS BECAUSE OF THE 15 EXCESS DISTRIBUTIONS EXCISE TAX ON ANNUAL WITHDRAWALS OVER 150000 IN VERY LARGE IRA ROLLOVERS WE ARE FINDING MORE INDIVIDUALS WHOSE REQUIRED DISTRIBUTIONS CAN THROW THE TAXPAYER OVER THE 150000 THRESHOLD FOR THIS SPECIAL TAX TAKING EARLY DISTRIBUTIONS MAY THEREFORE KEEP THE TAXPAYER UNDER THE THRESHOLD AMOUNT THE RULE HERE AS IN MOST PARTS OF THE TAX CODE IS WORK THE NUMBERS AND DON'T ASSUME 9401260113 940126 YIELDS ON CDS SHOW LITTLE CHANGE IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLIPPED TO 272 FROM 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 444 FROM 445 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EDGED DOWN TO 310 FROM 312 ACCORDING TO BANXQUOTE ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD REMAINED AT 448 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 276 FROM 278 ON FIVEYEAR JUMBOS THE AVERAGE REMAINED AT 463 BANXQUOTE REPORTED 9401260112 940126 ECONOMY CLINTON RETRAINING PLAN WOULD GIVE CASH BONUS TO WORKERS FINDING JOBS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PROPOSING TO GIVE UNEMPLOYED WORKERS A CASH BONUS FOR FINDING NEW JOBS AND IT WANTS TO LET PARTTIME WORKERS COLLECT UNEMPLOYMENT BENEFITS TO DISCOURAGE CORPORATE LAYOFFS THE PROPOSALS ARE PART OF THE WHITE HOUSE'S SHOWCASE JOBRETRAINING PROGRAM FOR WORKERS PERMANENTLY CUT FROM THEIR JOBS UNDER THE PLAN ADMINISTRATION OFFICIALS SAID YESTERDAY AS MANY AS 400000 UNEMPLOYED WORKERS EACH YEAR WOULD RECEIVE TWO FULL YEARS OF FEDERAL JOB TRAINING AND INCOME SUPPORT AN ADDITIONAL 16 MILLION UNEMPLOYED PEOPLE ARE EXPECTED TO USE SOME PART OF THE SYSTEM WHICH WILL INCLUDE JOBSEARCH ASSISTANCE AND CAREER COUNSELING THE CLINTON PLAN WHICH WOULD BE AIMED LARGELY AT MIDDLECLASS WORKERS WOULD COMBINE SIX CURRENT FEDERAL TRAINING PROGRAMS AS WELL AS THE FEDERAL EMERGENCY UNEMPLOYMENT INSURANCE SYSTEM THE NEW REEMPLOYMENT SYSTEM ALSO WOULD BE AVAILABLE TO PARTTIME EMPLOYEES WHO HAVE LOST THEIR JOBS AND TO HOMEMAKERS TRYING TO RETURN TO THE WORK FORCE IT ISN'T CLEAR HOW THE ADMINISTRATION WILL PROPOSE TO PAY FOR THE PROGRAM CURRENTLY THE SIX PROGRAMS RECEIVE ABOUT 15 BILLION OF FEDERAL FUNDS FOR JOB TRAINING IN ADDITION CONGRESS APPROPRIATES ABOUT 12 BILLION A YEAR IN EMERGENCY UNEMPLOYMENT BENEFITS ADMINISTRATION OFFICIALS ARE EXPECTED TO SEEK ABOUT 3 BILLION FOR THE REVAMPED TRAINING PROGRAM IT ISN'T CLEAR WHETHER THEY WILL REQUEST ANY FUNDS TO FURTHER EXTEND EMERGENCY UNEMPLOYMENT BENEFITS UNDER THE PROPOSAL UNEMPLOYED PEOPLE WOULD GO TO FEDERAL ONESTOP SHOPPING CENTERS NO MATTER WHY THEY LOST THEIR JOBS PERMANENTLY FIRED PEOPLE WOULD RECEIVE COUNSELING AND ADVICE ON CAREERS THAT ARE GROWING AND THEY MIGHT BE ADMITTED TO TRAINING PROGRAMS THEY WOULD RECEIVE INCOME SUPPORT WHILE ATTENDING THE TRAINING THE LABOR DEPARTMENT WHICH IS DEVELOPING THE PROPOSAL IS ADDING SEVERAL FEATURES DRAWN FROM STATE PROGRAMS FOR EXAMPLE ENTREPRENEURIALMINDED WORKERS WOULD BE ALLOWED TO USE UNEMPLOYMENT BENEFITS TO START BUSINESSES ANOTHER SUCH WRINKLE WOULD BE REEMPLOYMENT BONUSES CASH PAYOUTS FOR PEOPLE WHO FIND WORK QUICKLY IN ITS DRAFT REPORT ON THE REEMPLOYMENT SYSTEM THE LABOR DEPARTMENT SAYS THAT 3 TO 5 OF ELIGIBLE UNEMPLOYMENTCOMPENSATION RECIPIENTS WOULD GET SUCH CASH BONUSES IN PILOT PROJECTS FOUR STATES HAVE PAID INDIVIDUALS FROM 500 TO MORE THAN 1000 EACH FOR FINDING JOBS BEFORE THEIR UNEMPLOYMENT BENEFITS ARE EXHAUSTED AS IN THOSE PROGRAMS A FEDERAL PAYOUT WOULD BE MADE ONLY AFTER A WORKER STAYS IN A NEW JOB FOR A MINIMUM PERIOD MOREOVER PAYOUTS PROBABLY WOULD BE HANDED OUT AT THE DISCRETION OF EMPLOYMENT COUNSELORS AGENCY OFFICIALS SAID THE ADMINISTRATION ALSO WOULD PAY PARTIAL UNEMPLOYMENT BENEFITS TO INDIVIDUALS WHOSE EMPLOYERS REDUCE THEIR WORK HOURS IN LIEU OF LAYOFFS CURRENTLY 17 STATES AS WELL AS CANADA AND WESTERN EUROPEAN COUNTRIES HAVE SUCH PROGRAMS IN CANADA FOR EXAMPLE THE PROGRAM AVOIDED 43000 FULLTIME LAYOFFS IN 1992 THE LABOR DEPARTMENT SAID 9401260111 940126 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9401260110 940126 WHO'S NEWS DUKE POWER NAMES GRIGG CHIEF CHARLOTTE NC WILLIAM H BILL GRIGG 61 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF DUKE POWER CO THE APPOINTMENT OF MR GRIGG WHO HAS BEEN VICE CHAIRMAN OF THE LARGE ELECTRIC UTILITY SINCE 1991 WAS EXPECTED THE MOVE IS EFFECTIVE APRIL 28 MR GRIGG SUCCEEDS WILLIAM S BILL LEE WHO HAS LED DUKE POWER FOR 12 YEARS MR LEE 64 WILL SERVE AS A CONSULTANT TO THE COMPANY UNTIL HIS RETIREMENT ON JUNE 30 A FORMER MARINE WITH UNDERGRADUATE AND LAW DEGREES FROM DUKE UNIVERSITY IN DURHAM NC MR GRIGG JOINED DUKE POWER IN 1963 AS ASSISTANT GENERAL COUNSEL AND HAS SERVED ON THE COMPANY'S BOARD SINCE 1972 BEFORE BEING NAMED VICE CHAIRMAN MR GRIGG WAS EXECUTIVE VICE PRESIDENT CUSTOMER GROUP 9401260109 940126 CARDIOPULMONICS' IVOX DEVICE SALT LAKE CITY CARDIOPULMONICS INC SAID IT WITHDREW ITS APPLICATION TO THE FOOD AND DRUG ADMINISTRATION FOR PREMARKET APPROVAL OF ITS IVOX R INTRAVASCULAR OXYGENATOR A DEVICE THAT SUPPLEMENTS THE ACTION OF THE LUNGS THE WITHDRAWAL FOLLOWS INDICATIONS FROM THE FDA THAT THE COMPANY WOULD HAVE TO EXPAND ITS CLINICAL TRIALS TO MEET THE APPROVAL STANDARDS CARDIOPULMONICS ALSO SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE INNERDYNE MEDICAL INC A CLOSELY HELD MAKER OF MEDICAL DEVICES BASED IN SUNNYVALE CALIF UNDER TERMS OF THE DEAL SHAREHOLDERS OF INNERDYNE WOULD RECEIVE SHARES EQUAL TO 48 OF CARDIOPULMONICS' OUTSTANDING SHARES ON THE NASDAQ STOCK MARKET CARDIOPULMONICS SHARES CLOSED AT 196875 DOWN 3125 CENTS 9401260108 940126 LETTERS TO THE EDITOR PICTS ANGLES VIKINGS SEASON SCOTTISH BROTH WITH ALL DUE RESPECT TO YOUR SCOTSBORN CORRESPONDENT PAUL GILMOUR THE IRISH ARE SCOTTISH AND VICE VERSA LETTERS JAN 3 SCOTLAND IS A TRUE MELTING POT CONTAINING MUCH MORE THAN THE IRISHORIGIN SCOTS THERE WERE ALSO CALEDONIANS PICTS WHO MAY HAVE DERIVED FROM AN EARLIER CELTIC MIGRATION FROM THE CONTINENT ANGLES THE NORTHERN BORDER OF ENGLISH NORTHUMBRIA ONCE WAS THE FIRTH OF FORTH AND EDINBURGH WAS NAMED AFTER KING EDWIN OF NORTHUMBRIA DANISH AND NORSE VIKINGS INCLUDING MY OWN TAIT ANCESTOR FROM ABERDEENSHIRE THE WELSHSPEAKERS OF THE ANCIENT KINGDOMS OF STRATHCLYDE RHEGED AND MANAU GODDODIN THAT LIE IN THE SOUTHERN TIER OF MODERN SCOTLAND THE GREAT FIGHTING PATRIOT SIR WILLIAM WALLACE APPARENTLY WAS DESCENDED FROM THESE NORTH WELSH AND NORMANS KING ROBERT BRUCE'S ANCESTRAL SURNAME IS THE NORMAN DE BRUS AND JUST TO COMPLICATE MATTERS FURTHER THE NORMANS THEMSELVES WERE OF VIKING ORIGIN THUS THE TRANSPLANTED PROTESTANT SCOTS OF NORTHERN IRELAND TO THE EXTENT THAT THEY CAME FROM OUTSIDE OF THE GAELICSPEAKING SCOTTISH ISLANDS AND HIGHLANDS ARE ETHNICALLY MORE HETEROGENEOUS AND THUS DISTINCT FROM THE IRISH CERTAINLY MUCH MORE ETHNICALLY DISTINCT THAN SAY BOSNIANS AND SERBS TWO FURTHER OBSERVATIONS ARE IN ORDER HERE FIRST THE MODERN IRISH HAVE THEIR OWN ENGLISH NORMAN AND NORSE STRAINS AMONG OTHER THINGS NORSE VIKINGS FOUNDED DUBLIN SECOND THE ACTUAL GENETIC DIFFERENCES BETWEEN THE GREAT GERMANIC AND CELTIC BRANCHES OF THE INDOEUROPEAN FAMILY MAY BE QUITE SMALL 9401260107 940126 WHO'S NEWS BANGKOK BANK SAYS ITS PRESIDENT IS TAKING LEAVE DUE TO ILLNESS BANGKOK BANGKOK BANK PCL THAILAND'S LARGEST BANK SAID ITS PRESIDENT VICHIT SURAPHONGCHAI IS TAKING A SIXMONTH LEAVE OF ABSENCE TO SEEK TREATMENT FOR AN UNDISCLOSED ILLNESS THE BANK'S ANNOUNCEMENT ADDED TO CONFUSING SIGNALS ABOUT THE 48YEAROLD DR VICHIT WHO TOOK THE HELM 14 MONTHS AGO PRIOR TO THE BANK'S ANNOUNCEMENT DR VICHIT'S OFFICE SAID HE HAD RESIGNED AND THE STOCK EXCHANGE OF THAILAND REPORTED THAT BANGKOK BANK HAD TOLD IT THE SAME BANK OFFICIALS WOULDN'T EXPLAIN THE DISCREPANCY AND DR VICHIT COULDN'T BE REACHED FOR COMMENT ALTHOUGH ASSOCIATES OF DR VICHIT SAY HE DOESN'T APPEAR TO BE WELL MANY ANALYSTS THINK THE TIMING OF THE ANNOUNCEMENT REFLECTS GROWING FRICTION BETWEEN DR VICHIT AND THE SOPHONPANICH FAMILY WHICH HAS RUN THE BANK SINCE IT WAS FOUNDED IN 1944 HOWEVER DR VICHIT'S DEPARTURE WHETHER TEMPORARY OR PERMANENT ISN'T EXPECTED TO HAVE A GREAT IMPACT ON THE BANK'S OPERATIONS ANALYSTS SAID THE BANK SAID OTHER SENIOR EXECUTIVES WILL FILL IN FOR DR VICHIT DURING HIS ABSENCE 9401260106 940126 COOPER INDUSTRIES STOCK PLUNGES 19 ON BLEAK FORECAST BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON COOPER INDUSTRIES INC CHAIRMAN ROBERT CIZIK SAID 1994 NET INCOME COULD PLUNGE AS MUCH AS 25 BECAUSE OF A SLUMP IN OIL INDUSTRY EXPLORATION FOR WHICH COOPER SELLS EQUIPMENT THE DISCLOSURE SENT THE COMPANY'S STOCK DOWN 19 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EVEN AS IT ANNOUNCED A 61 RISE IN FOURTHQUARTER PROFIT THE PLUNGE IN THE STOCK ERASED MORE THAN 11 BILLION OF COOPER'S MARKET CAPITALIZATION COOPER A LARGE MAKER OF A HOST OF PRODUCTS FOR INDUSTRIES RANGING FROM ELECTRICAL POWER TO AUTOS SAID THE ANTICIPATED DECLINE IN ITS PETROLEUM BUSINESS WILL FAR EXCEED SOME IMPROVEMENT IN OTHER LINES WE ANTICIPATE A SIGNIFICANT DECLINE IN EARNINGS MR CIZIK SAID WHICH COULD BE AS STEEP AS 25 THE PLUNGE IN CRUDE OIL PRICES TO FIVEYEAR LOWS OF ABOUT 15 A BARREL WILL DEPRESS DEMAND FOR AN ARRAY OF PRODUCTS COOPER SELLS TO THE OIL EXPLORATION AND PRODUCTION INDUSTRY COOPER SAID AT 25 OF 1993 REVENUE COOPER'S PETROLEUM SEGMENT WAS ITS SECONDLARGEST MANY OF THE WORLD'S BIGGEST OIL COMPANIES HAVE SAID THEY INTEND TO KEEP THIS YEAR'S OIL DRILLING BUDGETS AT OR BELOW 1993 LEVELS UNLESS CRUDE PRICES PICK UP MR CIZIK SAID HE EXPECTS THAT THE DECLINE IN COOPER'S PETROLEUM BUSINESS WILL BE COMPOUNDED BY THE IMPACT OF A NORMAL CYCLICAL DOWNTURN IN NATURALGAS COMPRESSION PROJECTS INVESTORS REACTED PARTICULARLY HARSHLY TO MR CIZIK'S 1994 FORECAST BECAUSE THEY HAD COME TO EXPECT STEADY INCREASES IN RESULTS FROM COOPER AS ONE LINE OF BUSINESS GENERALLY IMPROVED ENOUGH TO OFFSET HARSHER RESULTS ELSEWHERE BUT YESTERDAY COOPER STOCK PLUNGED 9875 TO 41625 IN BIG BOARD TRADING MR CIZIK'S PREDICTION CAME AS THE COMPANY REPORTED THAT NET INCOME FOR THE FOURTH QUARTER INCREASED TO 1022 MILLION OR 78 CENTS A SHARE FROM 963 MILLION OR 73 CENTS A SHARE REVENUE SLID 23 TO 16 BILLION FROM 164 BILLION FOR 1993 NET ROSE TO 3671 MILLION OR 275 A SHARE COMPARED WITH A 1992 LOSS OF 2287 MILLION OR 248 A SHARE WHICH INCLUDED A 590 MILLION WRITEDOWN TO REFLECT CHANGES IN ACCOUNTING PRINCIPLES WITHOUT THE ACCOUNTING CHANGES COOPER HAD 1992 PROFIT OF 3613 MILLION OR 271 A SHARE REVENUE IN 1993 ROSE 23 TO 627 BILLION FROM 613 BILLION THE OIL SEGMENT OF COOPER WAS ALREADY FEELING THE HEAT LAST YEAR WHEN IT SLIPPED FROM THE BIGGEST TO THE SECONDLARGEST PORTION OF THE COMPANY DOWN FROM 30 OF THE MIX IN 1992 THE PETROLEUM SEGMENT WAS SUPERSEDED BY AUTOMOTIVE PRODUCTS COOPER SAID COOPER SAID BUSINESS SEGMENTS SERVING STRONGER MARKETS SHOWED IMPROVEMENTS IN THE LATEST QUARTER INCLUDING ELECTRICAL PRODUCTS TOOLS AND HARDWARE AND AUTO PRODUCTS THE COMPANY ALSO BENEFITED FROM LOWER INTEREST EXPENSES MR CIZIK SAID WITH MODEST IMPROVEMENT IN THE NORTH AMERICAN ECONOMY AND NO FURTHER DECLINE IN THE EUROPEAN MARKET OUR ELECTRICAL PRODUCTS AND TOOLS AND HARDWARE SEGMENTS SHOULD CONTINUE TO DO WELL MR CIZIK SAID THAT COOPER WILL CONTINUE TO PURSUE EXPANSION BY ACQUISITION LAST YEAR THE COMPANY MADE WHAT IT CALLS SMALL COMPLEMENTARY ACQUISITIONS AND WOULD CONTINUE THAT STRATEGY A SPOKESWOMAN SAID 9401260105 940126 MANAGING YOUR CAREER BY GILBERT FUCHSBERG THE CLOCK TICKS HUNCHED OVER A DESK I DELICATELY SQUEEZE A TWEEZER AND PLUCK A PIN FROM ITS HOLE ON A WOODEN BOARD MOVING MY HAND SEVERAL INCHES TO THE LEFT I CAREFULLY ALIGN THE PIN ABOVE ANOTHER HOLE AND DROP IT IN SUCCESS FOUR MINUTES LATER I HAVE TRANSFERRED 99 MORE PINS ALL BUT ONE FLAWLESSLY FEELING PRETTY COCKY I AWAIT THE GOOD NEWS BUT IT DOESN'T COME I DIDN'T TWEEZE THE PINS FAST ENOUGH THAT MIGHT NOT SEEM TO MATTER MUCH EXCEPT FOR ONE FACT THIS IS PART OF A TEST THAT COULD CHANGE MY CAREER MORE PEOPLE UNHAPPY AT WORK BUT UNCERTAIN ABOUT THEIR OPTIONS ARE USING CAREER EXAMS TO GAUGE THEIR STRENGTHS BEFORE THEY TEST THE JOB MARKET THERE'S EXPANDING DEMAND FOR ALL KINDS OF VOCATIONAL TESTING SAYS JOHN W JONES SENIOR PSYCHOLOGIST AT LONDON HOUSE A PERSONNELASSESSMENT FIRM IN ROSEMONT ILL THESE TESTS CAN BE A GOOD FIRST STEP ESPECIALLY FOR THOSE WHO WANT TO DISCOVER UNUSED SKILLS HE ADDS BUT PICKING THE RIGHT EXAM CAN BE TRICKY SOME MATCH YOUR PERSONALITY TRAITS TO CERTAIN PROFESSIONS OTHERS TARGET YOUR INTERESTS INTELLIGENCE OR APTITUDES INDUSTRIAL PSYCHOLOGISTS AND CAREERCOUNSELING SERVICES TOUT SUCH TESTS IN THE YELLOW PAGES THEY'RE ALSO OFFERED BY SOME OUTPLACEMENT FIRMS AND COLLEGE PSYCHOLOGY DEPARTMENTS YOU MAY SPEND AS LITTLE AS 25 FOR A STANDARDIZED TEST BUT CONSIDERABLY MORE FOR A PROPRIETARY EXAM WITH CUSTOMIZED INTERPRETATION BECAUSE THE FIELD IS LARGELY UNREGULATED YOU SHOULD CHECK A TESTER'S REFERENCES AND MAKE SURE AN EXAM IS COPYRIGHTED AND BACKED BY RESEARCH EXPERTS ADVISE TYPICALLY THE MORE REPUTABLE THE TESTER THE BETTER THE TEST SAYS BILL JACKSON A VICE PRESIDENT OF DEVELOPMENT DIMENSIONS INTERNATIONAL A PITTSBURGH CONCERN THAT EVALUATES PERSONNEL FOR COMPANIES THE WALL STREET JOURNAL RECENTLY PAID FOR ME TO TESTDRIVE A WELLESTABLISHED CAREER EXAM GIVEN IN 11 CITIES BY THE NONPROFIT JOHNSON O'CONNOR RESEARCH FOUNDATION THE 480 TEST SEEKS TO MEASURE APTITUDES NATURAL TALENTS AND SKILLS SUCH AS MUSICAL ABILITY OR THE TENDENCY TO THINK IN CERTAIN WAYS MANY FACTORS CONTRIBUTE TO JOB SATISFACTION OF COURSE BUT YOU'RE MORE LIKELY TO ENJOY WORK THAT ALSO TAKES ADVANTAGE OF YOUR INBORN APTITUDES SAYS THE FOUNDATION WHOSE MAIN OFFICES ARE IN NEW YORK BOSTON AND CHICAGO ABOUT 5000 PEOPLE TAKE JOHNSON O'CONNOR'S TEST EVERY YEAR NEW COLLEGE GRADUATES ONCE PREDOMINATED BUT NOW THE FOUNDATION SAYS MORE TAKERS ARE EDUCATED ADULTS WHO AREN'T HAPPY IN THEIR WORK I HAD LITTLE IDEA WHAT TO EXPECT FROM THE TEST SPREAD OVER TWO MORNINGS I GET THE EASY STUFF FIRST AFTER MOVING PLASTIC CARDS BACK AND FORTH IN FRONT OF MY EYES PRETENDING TO THROW A BASEBALL AND PERFORMING OTHER TRICKS I LEARN I'M RIGHT EYEANDHAND DOMINANT PERFECTLY NORMAL BUT NOT THE SPECIAL CROSSDOMINANCE THAT MANY PROFESSIONAL ATHLETES ENJOY SO MUCH FOR SPORTS NEXT I STARE AT A PICTURE OF 20 HOUSEHOLD OBJECTS FOR ABOUT A MINUTE THEN I LOOK AT A BUNCH OF PHOTOS WITH THE SAME OBJECTS REMOVED AND REARRANGED IF I COULD QUICKLY IDENTIFY THAT THE RAZOR AND SHOEHORN TRADED PLACES FOR INSTANCE I WOULD BE OBSERVANT ENOUGH TO DO DETECTIVE OR QUALITYCONTROL WORK I'M NOT THEN COMES THE FOLDEDPAPERWITHAHOLEINIT TEST PREDICT WHERE ALL THE HOLES WILL BE WHEN THE PAPER IS UNFOLDED I CAN'T THAT MEANS I PROBABLY LACK THE 3D VISUAL SKILL SO CRITICAL IN GOOD ARCHITECTS ENGINEERS EVEN PLUMBERS AND MY WHEEZING TWEEZING ON THE PINMOVING TEST SUGGESTS I LACK THE DEXTERITY NEEDED TO BE A SURGEON OR A DENTIST DESPAIR JUST 45 MINUTES GONE AND ALREADY I SHOW A DECIDED LACK OF APTITUDES I ENDURE 26 EXERCISES DIRECTED BY A TESTER OR AUDIOTAPE VIRTUALLY ALL ARE CLOCKED I ENJOY SOME SUCH AS REASONING TESTS IN WHICH I MUST ARRANGE WORDS INTO IDEAS OTHERS SUCH AS MEMORIZING ENGLISH TRANSLATIONS OF MARTIAN WORDS QUICKLY FLASHED ON A SCREEN ARE TEDIOUS BUT THEN I NEVER WAS VERY GOOD AT THE SKILL THAT DRILL SEEKS TO GAUGE PICKING UP LANGUAGES I UNDERGO ABOUT SEVEN HOURS OF SUCH ACTIVITY INCLUDING A LONG VOCABULARY TEST AND AN INTEREST INVENTORY TO CALIBRATE MY ATTITUDE TOWARD 192 OCCUPATIONAL TASKS BY THE END I AM EAGER TO ESCAPE FOUR OTHER RECENT TESTTAKERS AGREED THE REGIMEN SEEMED OVERLY LONG NOTABLY NONE WAS TERRIBLY SURPRISED AT THEIR RESULTS DELIVERED BY A FOUNDATION COUNSELOR ALONG WITH POSSIBLE TYPES OF WORK BASED ON THEIR STRENGTHS STILL THEY GENERALLY FOUND THE EXPERIENCE HELPFUL BRUCE G MAASBACH TOOK IT LAST YEAR AFTER FEELING FRUSTRATED BY HIS INABILITY TO SUSTAIN HIS SALES RECORD AS A REALESTATE BROKER THE TEST CONFIRMED MR MAASBACH'S SKILL FOR SALES WORK BUT CONCLUDED THAT HE MIGHT BE HAPPIER WORKING WITH NUMBERS NOW THE 38YEAROLD NEW YORKER SAYS HE'S THRILLED AND MORE EFFECTIVE WORKING AS A MORTGAGE BROKER I FOUND OUT WHAT MY GIFTS ARE HE SAYS I FOUND OUT WHAT MY LIMITS ARE MY EDITORS WON'T LIKE THIS BUT I RANKED IN THE DISMAL 10TH PERCENTILE ON DIVERGENT THINKING A BRIEF ESSAY DESIGNED TO MEASURE MY FLOW OF IDEAS A HIGH SCORE SUGGESTS A CAREER IN SALES ADVERTISING TEACHING AND UM JOURNALISM ALSO I ONLY HIT THE 80TH PERCENTILE ON VOCABULARY HARDLY AN IDEAL SHOWING FOR SOMEONE WHO WORKS WITH WORDS FOR A LIVING WHAT SHOULD I BE INSTEAD I LEARN MY PERSONALITY IS BEST SUITED TO WORKING WITH AND THROUGH OTHERS IN OTHER WORDS THE FOUNDATION SAYS I SHOULD BE THE BOSS BUT THAT'S HARDLY NEWS TO ME 9401260104 940126 TECHNOLOGY & HEALTH SPECTRUM INFORMATION HAS BEEN SUBJECT OF SEC PROBE SINCE MAY COMPANY SAYS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC HAS BEEN THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION PROBE SINCE LAST MAY ACCORDING TO THE COMPANY'S GENERAL COUNSEL THE INVESTIGATION CENTERS ON THE LICENSING AGREEMENTS SIGNED BY SPECTRUM MANHASSET NY WITH NUMEROUS MANUFACTURERS INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND PUBLIC STATEMENTS BY SPECTRUM OFFICIALS ABOUT THE VALUE OF THOSE PACTS SAID SPECTRUM GENERAL COUNSEL CHRISTOPHER P FRANCO HIS COMMENTS CONTRASTED SHARPLY WITH THOSE MADE EARLIER YESTERDAY BY THE WIRELESS DATA COMPANY'S CHAIRMAN JOHN SCULLEY IN AN INTERVIEW WITH THE WALL STREET JOURNAL MR SCULLEY'S REMARKS RAN ON THE DOW JONES NEWS SERVICE YESTERDAY SPECTRUM SHARES PLUNGED 1 TO 63125 ON THE NASDAQ STOCK MARKET AFTER A CNBC REPORT BY COLUMNIST DAN DORFMAN OF RUMORS THAT MR SCULLEY WOULD RESIGN AND THAT SPECTRUM WAS THE SUBJECT OF AN SEC INVESTIGATION IN THE INTERVIEW MR SCULLEY CALLED THE REPORT BIZARRE THE FORMER APPLE COMPUTER INC CHAIRMAN SAID HE HAD NO PLANS TO QUIT HIS JOB AND THAT SPECTRUM WAS NOT THE SUBJECT OF AN SEC INVESTIGATION SOMEBODY GAVE DAN DORFMAN A BUM STEER HE SAID LATER A COMPANY SPOKESMAN REITERATED MR SCULLEY'S STATEMENTS INSISTING THERE ARE NO PROBES GOING ON AT SPECTRUM THE PROBE STEMS FROM THE WILD RIDE SPECTRUM'S STOCK TOOK LAST SPRING THE SHARES SKYROCKETED AFTER IT TOUTED A PATENTLICENSING DEAL WITH AT&T AND SPECTRUM PRESIDENT PETER CASERTA SAID THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN NEW BUSINESS THE STOCK LATER PLUNGED WHEN AT&T DISAVOWED THE PROJECTION MR FRANCO SAID THERE WAS NO LEGAL REQUIREMENT TO DISCLOSE THE INVESTIGATION SINCE THE SEC INVESTIGATORS HAD DEFINED IT AS A CONFIDENTIAL NONPUBLIC INQUIRY MR SCULLEY JOINED SPECTRUM IN OCTOBER AFTER LEAVING THE STRUGGLING APPLE SPECTRUM HAS PATENTS THAT COULD APPLY TO A POTENTIALLY HUGE MARKET SUCH AS LAPTOP COMPUTERS AND PERSONAL COMMUNICATORS WHICH USE WIRELESS NETWORKS SPECTRUM IN NOVEMBER AGREED TO SETTLE A CLASSACTION LAWSUIT FILED BY SHAREHOLDERS WHO CHARGED SPECTRUM WITH INFLATING CLAIMS ABOUT ITS DEAL WITH AT&T SPECTRUM AGREED TO PAY THE SHAREHOLDERS 15 MILLION IN CASH AND ISSUE 750000 WARRANTS TO BUY SPECTRUM STOCK AT OR ABOVE MARKET PRICES 9401260103 940126 LETTERS TO THE EDITOR ETHNIC DIVERSITY AND ACCREDITATION YOUR DEC 29 EDITORIAL THE DIVERSITY STANDARD GETS MANY THINGS WRONG YOU STATE OUR ACCREDITING DOCUMENT SETS FORTH A NEW DIVERSITY STANDARD IT DOES NOTHING OF THE KIND RATHER IT IS AN EFFORT BY THE ACCREDITING COMMISSION TO OFFER ASSISTANCE TO MEMBER COLLEGES IN LIVING UP TO STANDARDS TO WHICH THEY HAVE SUBSCRIBED SINCE 1988 THE DOCUMENT CLEARLY STATES THAT ACCREDITATION WILL NOT BE DENIED ANY COLLEGE THAT IS THOUGHTFULLY CONSIDERING THE MATTER OF DIVERSITY IN THE CONTEXT OF ITS OWN INSTITUTIONAL MISSION AND VALUES THE DOCUMENT ADDRESSES PRINCIPALLY MATTERS OF ETHNIC DIVERSITY ALL THREE OF THESE POINTS HAVE BEEN ABUNDANTLY CLEAR IN ALL DRAFTS OF THE DOCUMENT CIRCULATED IN THE PAST SIX MONTHS YOU ASK YOUR READERS TO BELIEVE THAT THE EFFORTS OF OUR ACCREDITING COMMISSION REGARDING ETHNIC DIVERSITY ARE FOUND WITHIN AN ATMOSPHERE BLIGHTED BY CENSORSHIP SPEECH CODES QUOTA HIRING AND OTHER SYMPTOMS OF POLITICAL CORRECTNESS HARDLY OUR DOCUMENT ON DIVERSITY SPECIFICALLY REMINDS COLLEGES OF THEIR OBLIGATION TO SUPPORT FREEDOM OF INQUIRY AND EXPRESSION THE DOCUMENT DOES SO BY QUOTING THE FOLLOWING LANGUAGE FROM THE EXISTING STANDARDS THOSE WITHIN AN EDUCATIONAL INSTITUTION HAVE AS A FIRST CONCERN KNOWLEDGE EVIDENCE AND TRUTH THIS CONCERN SHOULD NOT BE UNDERMINED BY PARTICULAR JUDGMENTS OF INSTITUTIONAL BENEFACTORS OF PUBLIC OR SOCIAL PRESSURE GROUPS OR OF RELIGIOUS OR POLITICAL GROUPS SURELY THIS EXCERPT PLACES OUR ACCREDITATION PROCESS SQUARELY ON THE SIDE OF ACADEMIC FREEDOM ANOTHER IMPORTANT MATTER YOU DERIDE AS A SUDDENLY DISCOVERED DOGMA THE IDEA THAT DIVERSITY AND EDUCATIONAL QUALITY ARE LINKED SURELY THIS IS NOT DOGMA OR EVIDENCE OF ZEALOTRY AS YOU SUGGEST BUT A COMPELLING CONDITION OF AMERICA TODAY AND TOMORROW GIVEN OUR ETHNICALLY DIVERSE SOCIETY WHAT WOULD YOU SAY OF THE QUALITY OF AN EDUCATION THAT PROVIDED NO FAMILIARITY WITH THE WAYS AND HISTORIES OF THE GROUPS TO WHICH FELLOW STUDENTS CITIZENS AND COWORKERS WILL BELONG WE SAY THAT WOULD REPRESENT A SERIOUS GAP IN EDUCATIONAL QUALITY AND ULTIMATELY COMPROMISE AMERICA'S FUTURE 9401260102 940126 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK RC MARK BAKER 47 YEARS OLD WAS NAMED VICE PRESIDENT OF INTERNATIONAL STRATEGY AND PLANNING AT THIS TELECOMMUNICATIONS COMPANY MR BAKER PREVIOUSLY WAS A SENIOR EXECUTIVE FOR GLOBAL CUSTOMERS AT LONDONBASED BRITISH TELECOMMUNICATIONS PLC AT AT&T MR BAKER WILL BE RESPONSIBLE FOR SUPPORTING GLOBALIZATION EFFORTS AND BROADENING INTERNATIONALCOMMUNICATIONS SERVICES 9401260101 940126 MARKETING & MEDIA VIACOM PLANS TEST OF HOME SHOPPING BY EMPLOYING MTV MUSIC NETWORK MAY LAUNCH A STANDALONE CHANNEL DEPENDING ON RESPONSE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INTERNATIONAL INC SAID IT PLANS TO PLUNGE INTO THE HOMESHOPPING MARKET BY TESTING THE CONCEPT ON MTV AND ITS OTHER CABLE NETWORKS BEGINNING IN APRIL THE MTV NETWORKS UNIT WILL OFFER RECORDED MUSIC CDS AND CASSETTES CONCERT TICKETS AND OTHER MUSICRELATED PRODUCTS THE NETWORKS WHICH PROVIDE MUSICVIDEO PROGRAMMING ALREADY HAVE A HIGH PROFILE AMONG A YOUNG MUSICORIENTED AUDIENCE DEPENDING ON THE TEST RESULTS MTV WILL CONSIDER LAUNCHING A STANDALONE SHOPPING CHANNEL IN THE FIRST QUARTER OF 1995 MTV NETWORKS SAID IT HAD BEEN WORKING ON THE CONCEPT FOR ABOUT TWO YEARS BUT THE ANNOUNCEMENT FORMALLY MOVES MTV INTO HOME SHOPPING AS ITS PARENT VIACOM INC BATTLES HOMESHOPPING GIANT QVC NETWORK INC TO ACQUIRE PARAMOUNT COMMUNICATIONS INC SUCH A VENTURE IS LIKELY TO FACE FORMIDIBLE COMPETITION RECENTLY CABLE BROADCASTER TELECOMMUNICATIONS INC JOINED WITH GERMAN RECORD COMPANY BERTELSMANN AG TO LAUNCH A MUSICVIDEO/HOMESHOPPING CABLE CHANNEL THAT WILL SELL MUSICRELATED MERCHANDISE SUCH AS TSHIRTS AND CONCERT TICKETS AS WELL TAPES AND CDS NOT AVAILABLE IN STORES THE VENTURE IS EXPECTED TO BE LAUNCHED IN MID1994 THEY HAVE A SIXMONTH HEAD START CONCEDED TOM FRESTON CHAIRMAN AND CHIEF EXECUTIVE OF MTV NETWORKS BUT WE DON'T SEE THIS AS THE END OF THE WORLD HE SAID MTV EXPECTS TO SPEND A SIGNIFICANT AMOUNT TO LAUNCH ITS HOMESHOPPING SERVICE BUT SAID IT WAS LESS THAN 100 MILLION HE SAID MTV HAS HAD DISCUSSIONS WITH SIX MAJOR RECORD LABELS THAT EXPRESSED ENTHUSIASM BUT NO FIRM COMMITMENT ABOUT SELLING THEIR PRODUCTS THERE COULD BE COMPETITION FROM OTHER SOURCES SEVERAL RECORD COMPANIES LED BY SONY CORP'S SONY MUSIC AND TIME WARNER INC'S WARNER MUSIC GROUP ARE DISCUSSING FORMING WORLDWIDE TELEVISED MUSICVIDEO SERVICES THAT COULD BE THE FIRST SIGNIFICANT COMPETITOR TO MTV NETWORKS AN INCREASING PERCENTAGE OF RECORDED MUSIC PURCHASES ARE BEING MADE DIRECTLY FROM THE HOME THROUGH RECORD CLUBS AND MAILORDER SALES MR FRESTON SAID WE WILL BE WELLPOSITIONED TO TAKE ADVANTAGE OF THIS TREND HE ADDED WE WILL BE AN ADJUNCT TO RECORD STORES AND OTHER RETAILERS NOT COMPETITIVE WITH THEM WE'LL BE INCREASING THE SIZE OF THE PIE BY BRINGING MORE PEOPLE TO MUSIC AND OTHER PRODUCTS MTV SAID CABLE OPERATORS WILL PARTICIPATE IN REVENUE GENERATED BY THE SHOPPING PROGRAMMING SUCH A SHOPPING SERVICE RAISES THE PROSPECT OF A CLASH OVER RECORD COMPANY RELATIONSHIPS WITH WELLESTABLISHED MUSIC RETAILERS AND SELLERS OF MUSICRELATED MERCHANDISE WE HAVE TALKED TO THE RECORD COMPANIES AND THEY DON'T SEE THEIR RETAIL BUSINESSES BEING CANNIBALIZED MR FRESTON SAID MTV NETWORKS OWNS AND OPERATES THREE TELEVISION PROGRAMMING NETWORKS MTV MUSIC TELEVISION VH1 AND NICKELODEON/NICK AT NITE 9401260099 940126 BUSINESS BRIEF EMULEX CORP MEETING PLANNED FOR FEB 24 ON UNIT'S STOCK DISTRIBUTION EMULEX CORP COSTA MESA CALIF A MAKER OF COMPUTERNETWORKCOMMUNICATIONS EQUIPMENT SAID IT WILL HOLD A SPECIAL SHAREHOLDERS MEETING FEB 24 TO APPROVE TERMS OF A DISTRIBUTION OF ALL THE STOCK IN ITS QLOGIC CORP UNIT EMULEX SAID HOLDERS OF RECORD JAN 14 WILL BE ASKED TO APPROVE A 1FOR2 REVERSE SPLIT IN EMULEX STOCK RESULTING IN ABOUT 55 MILLION EMULEX SHARES OUTSTANDING AND THEN A 1FOR1 DISTRIBUTION OF QLOGIC STOCK TO EMULEX HOLDERS EMULEX SAID A RECORD DATE FOR THE DISTRIBUTION HASN'T BEEN FIXED SHARES OF QLOGIC WHICH SELLS A LINE OF SMALLCOMPUTERINTERFACE DEVICES ARE EXPECTED TO TRADE ON THE NASDAQ NATIONAL MARKET SYSTEM EMULEX SAID 9401260098 940126 WHO'S NEWS KRAFT GENERAL FOODS KRAFT GENERAL FOODS NORTHFIELD ILL THOMAS J HOEPPNER EXECUTIVE VICE PRESIDENT OPERATIONS AND TECHNOLOGY AT GENERAL FOODS USA WAS NAMED A SENIOR VICE PRESIDENT OF THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS AND PRESIDENT OF CUSTOMER SUPPORT SERVICES MR HOEPPNER 52 YEARS OLD SUCCEEDS EDWARD W SMEDS 57 WHO IS RETIRING RICHARD E BAILEY 47 EXECUTIVE VICE PRESIDENT OF OPERATIONS AT KRAFT USA WILL ADD THE TITLE OF SENIOR VICE PRESIDENT MANUFACTURING AT KRAFT GENERAL FOODS 9401260097 940126 S&P ADDS TWO NEW GROUPS NEW YORK STANDARD & POOR'S CORP SAID IT WILL ESTABLISH TWO NEW INDUSTRY GROUPS WITHIN ITS S&P 500 INDEX PHOTOGRAPHY/IMAGING AND SPECIALTY PAPERS EFFECTIVE AFTER THE CLOSE OF TRADING TODAY EASTMAN KODAK CO AND POLAROID CORP JOINED THE PHOTOGRAPHY/IMAGING GROUP AND DELUXE CORP RR DONNELLEY & SONS CO AND JOHN H HARLAND CO JOINED THE SPECIALTY PAPERS GROUP THE S&P 500 CONTAINS 89 INDUSTRY GROUPS ALL FIVE COMPANIES PREVIOUSLY HAD BEEN CLASSIFIED AS MISCELLANEOUS 9401260096 940126 BUSINESS BRIEF EXAR CORP SALES FOR CURRENT QUARTER ARE LIKELY TO BE DOWN 10 EXAR CORP EXPECTS SALES FOR ITS CURRENT QUARTER TO BE ABOUT 10 BELOW SALES IN ITS FISCAL THIRD QUARTER IN WHICH THE COMPANY SAID IT EARNED 4 MILLION ON SALES OF 384 MILLION THE MAKER OF INTEGRATED CIRCUITS SAID IN SAN JOSE CALIF THAT ITS ORDERS HAVE BEEN STRONG BUT THAT CERTAIN OF ITS PRODUCTS ARE IN SHORT SUPPLY THE COMPANY WHICH SAID IT WAS STILL TOO EARLY TO MAKE ANY SPECIFIC PREDICTION FOR ITS MARCH RESULTS ALSO BLAMED CONTINUED WEAKNESS IN JAPANESE DEMAND IN ITS FOURTH QUARTER ENDED MARCH 31 1993 EXAR EARNED 37 MILLION ON SALES OF 375 MILLION SEPARATELY EXAR REPURCHASED 15 MILLION OF ITS OWN SHARES FROM ROHM USA INC FOR 236 MILLION THE SALE REDUCES ROHM'S HOLDINGS IN EXAR TO SLIGHTLY LESS THAN 5 FROM 209 EXAR ALSO SAID ITS BOARD HAD AUTHORIZED THE OPENMARKET REPURCHASE OF AS MANY AS 300000 SHARES OF ITS COMMON STOCK DURING 1994 9401260095 940126 INSIDE TRACK GAS UTILITY INSIDERS GOBBLE UP SHARES BY DAVE KANSAS AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL A TRIPLE BONUS OF RISING NATURALGAS PRICES STABLE INTEREST RATES AND RECENT DEREGULATORY MOVES IS SPAWNING A FLURRY OF INSIDER BUYING AMONG NATURALGAS UTILITY EXECUTIVES AND DIRECTORS INSIDERS AT NINE MAJOR NATURALGAS UTILITIES HAVE BEEN SNAPPING UP SHARES IN THEIR RESPECTIVE COMPANIES SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THOSE COMPANIES ARE SOUTHERN UNION CO PENNSYLVANIA ENTERPRISES COASTAL CORP NATIONAL GAS & OIL CO WESTERN GAS RESOURCES INC ARKLA INC ENRON CORP SONAT INC AND SOUTHWEST GAS CORP WHILE THE RECENT COLD SNAP MAY CONTINUE TO LIFT NATURALGAS PRICES AND PROVIDE A SHORTTERM BOOST FOR SEVERAL GAS UTILITIES INDUSTRY INSIDERS HAD LONG DETECTED GROUNDS FOR OPTIMISM BEFORE THE FIERCE WEATHER SET IN INDEED THEY SAW A FOURTHQUARTER MARKET SELLOFF AS AN OPPORTUNITY TO BUY A MOVE THAT NOW APPEARS PRESCIENT IN NEW YORK MERCANTILE EXCHANGE TRADING THE FUTURES PRICE OF NATURAL GAS FOR MARCH DELIVERY WAS 2246 A MILLION BRITISH THERMAL UNITS DOWN 37 CENTS PRIOR TO THE COLD WEATHER OUTSIDE INVESTORS HAD BEEN WARY OF SEVERAL POTENTIALLY DAUNTING PROBLEMS FACING THE GAS UTILITIES NONE OF WHICH MATERIALIZED ONE CONCERN WAS THE POSSIBILITY THAT THE FEDERAL RESERVE BOARD MIGHT RAISE INTEREST RATES WHICH WOULD DAMAGE THE RATESENSITIVE INDUSTRY BUT A BIGGER THREAT LOOMED WHEN STANDARD & POOR'S CORP CHANGED ITS RATINGS GUIDELINES FOR ELECTRIC UTILITIES CITING CONCERNS ABOUT THE POTENTIALLY DEPRESSIVE EFFECTS ON PROFIT MARGINS FROM ACCELERATING DEREGULATION SEVERAL EQUITY ANALYSTS ALSO EXPRESSED CONCERN ABOUT INCREASED COMPETITION AMONG ELECTRIC UTILITIES SENDING THE GROUP INTO A TAILSPIN LAST FALL INSIDERS THOUGH WEREN'T PUT OFF BY FEARS OF RATING CHANGES THEY KNEW THAT THEIR COMPANIES WERE MUCH FURTHER ALONG THAN THE ELECTRIC UTILITIES IN TERMS OF DEREGULATION THE NATURALGAS INDUSTRY HAD BEEN THROUGH A DIFFICULT PERIOD OF ADJUSTMENT SAID FOSTER CORWITH A GAS ANALYST AT DEAN WITTER NOW THEY'RE IN A GOOD POSITION TO STABILIZE PROFIT AND GROW AT SOUTHERN UNION IN AUSTIN TEXAS OUTSIDE DIRECTOR AARON FLEISCHMAN MORE THAN DOUBLED HIS STAKE BY SNAPPING UP 16400 SHARES IN THE UTILITY AT ROUGHLY 26 A SHARE DURING THE FINAL WEEK OF DECEMBER THE STOCK CLOSED YESTERDAY AT 31125 DOWN 25 CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE MR FLEISCHMAN'S OPENMARKET PURCHASES CAME AFTER HE AND EIGHT OTHER DIRECTORS AT THE COMPANY PURCHASED ROUGHLY 13450000 IN COMPANY STOCK IN A RIGHTS OFFERING THAT SUBSCRIPTION RIGHTSOFFERING WAS MEANT TO PARTIALLY FINANCE THE COMPANY'S EARLIERANNOUNCED ACQUISITION OF GASDISTRIBUTION PROPERTIES IN WESTERN MISSOURI OWNED BY WESTERN RESOURCES INC THAT DEAL WHICH WILL EXPAND SOUTHERN UNION'S CLIENT BASE BY 460000 CUSTOMERS IS EXPECTED TO CLOSE ON MONDAY I'M A BELIEVER IN THE GASUTILITY BUSINESS BUT I'M ESPECIALLY CONFIDENT IN THE MANAGEMENT OF SOUTHERN UNION AS IT MOVES TO DOUBLE THE SIZE OF ITS BUSINESS THROUGH THE MISSOURI ACQUISITION SAID MR FLEISCHMAN SENIOR PARTNER IN FLEISCHMAN & WALSH A WASHINGTONBASED LAW FIRM SPECIALIZING IN REPRESENTING REGULATED BUSINESSES SAYS ALVIN SILBER AN ENERGYINDUSTRY ANALYST WITH BROKER HERZOG HEINE GEDULD IN NEW YORK SOUTHERN UNION NOW ONE OF THE TOP FIVE LOWCOST GAS UTILITIES HAS A LONGTERM STRATEGY OF ACQUIRING DEPRESSED SUN BELT UTILITIES AT A DISCOUNT WHAT'S MORE HE SAYS THEY'RE NOT ONLY BEING HARDNOSED ABOUT OPERATING EFFICIENCIES BUT THEY SEE LONGTERM OPPORTUNITIES IN THE GASUTILITY SECTOR BASED ON THE INCREASING USE OF NATURAL GAS IN SUCH NONCONVENTIONAL AREAS AS TRANSPORTATION AND AIRCONDITIONING MR SILBER NOTES FOR EXAMPLE THAT THE 1990 CLEAN AIR ACT MANDATES THAT THE FEDERAL GOVERNMENT'S AUTO FLEET CONVERT TO NATURALGAS FUEL USE OVER TIME SUCH REGULATIONS HE SAYS WILL CREATE 12MONTHAYEAR AREAS OF CONSUMPTION FOR NATURALGAS PROVIDERS LIKE SOUTHERN AMONG THE MAJOR GAS UTILITIES SHOWING SIGNIFICANT INSIDERBUYING ACTIVITY IN THE FOURTH QUARTER SEC DATA INDICATE THAT EIGHT INSIDERS AT PENNSYLVANIA ENTERPRISES BOUGHT A COMBINED 24625 SHARES AT AN AVERAGE OF 28 EACH YESTERDAY THE STOCK CLOSED AT 3025 DOWN 75 CENTS ON THE NASDAQ STOCK MARKET A NUMBER OF OUR DIRECTORS AND OFFICERS HAVE BEEN BUYING STOCK BECAUSE THEY BELIEVE THAT IT REPRESENTS A GOOD VALUE SAYS THOMAS WARD COMPANY VICE PRESIDENT AND SECRETARY THE GAS BUSINESS HAS ALWAYS BEEN A SOLID CONTRIBUTOR TO OUR BOTTOM LINE AND WE EXPECT THAT BUSINESS TO CONTINUE TO GROW STEADILY HE NOTES AS WELL THAT INSIDERS ARE BUYING COMPANY STOCK ON IMPROVED WATERUTILITY OPERATIONS AT THE WILKESBARRE PA COMPANY SEC DATA ALSO INDICATE THAT TWO INSIDERS AT ARKLA BOUGHT 2500 SHARES AT AROUND 790 TWO AT NATIONAL GAS & OIL ACQUIRED 11529 SHARES AT 16 TWO AT WESTERN GAS RESOURCES PURCHASED 1800 SHARES AT 3150 ONE AT ENRON BOUGHT 13437 SHARES AT 29 ONE AT SONAT ACQUIRED 10000 AT 27 ONE AT COASTAL SNAPPED UP 4000 SHARES AT 2638 AND ONE AT SOUTHWEST GAS GRABBED 2000 SHARES AT 16 9401260094 940126 BUSINESS BRIEF CONTINENTAL AIRLINES TRANSATLANTIC MARKETING WITH AIR FRANCE IS DELAYED CONTINENTAL AIRLINES AND AIR FRANCE HAVE POSTPONED IMPLEMENTING A MARKETING AGREEMENT WHOSE AIM IS TO BOOST TRAFFIC FOR BOTH IN THE COMPETITIVE TRANSATLANTIC MARKET THE DELAY IN THE AGREEMENT WHICH WAS SIGNED LAST JULY STEMS FROM AIR FRANCE'S CHANGE IN MANAGEMENT LATE LAST YEAR IN A NEWS RELEASE AIR FRANCE SAID ITS NEW MANAGEMENT NEEDS MORE TIME TO ASSESS ITS OPERATIONS AS WELL AS RELATIONSHIPS WITH OTHER CARRIERS THE AGREEMENT DIDN'T INVOLVE ANY EXCHANGE OF EQUITY OR CODE SHARING WHERE AIRLINES BOTH GIVE THEIR OWN FLIGHT NUMBER TO THE SAME FLIGHT AND JOINTLY MARKET IT IT WOULD HOWEVER INVOLVE COORDINATING THE TWO CARRIERS' SCHEDULES LINKING THEIR FREQUENTFLIER PROGRAMS AND SHARING SPACE AT TERMINALS IN PARIS AND NEWARK NJ 9401260093 940126 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN MAKING A DEAL WITH THE IRS GROWS EASIER BUT MAY DEPEND ON WHERE YOU LIVE BUT THE CONGRESSIONALWATCHDOG AGENCY AND A SEPARATE REPORT BY THE NATIONAL TAXPAYERS UNION ALSO FOUND WIDE VARIATIONS IN ACCEPTANCE RATES AMONG THE IRS'S 63 DISTRICTS TAX ADVISERS SAY THIS INDICATES SOME IRS DISTRICTS ARE FAR MORE LENIENT THAN OTHERS IRS OFFICIALS DISAGREE SAYING THE DATA MERELY REFLECT VARIATIONS IN THE QUALITY OF TAXPAYER OFFERS IN DIFFERENT REGIONS BUT THE IRS DOES AGREE MORE DATA ARE NEEDED TO GAUGE THE PROGRAM'S OVERALL EFFECTIVENESS AS A TAXCOLLECTION TOOL HOMEOWNERS CHECK THAT FORM SHOWING YOUR MORTGAGEINTEREST PAYMENTS FORM 1098 IS USED BY LENDERS TO REPORT HOW MUCH MORTGAGE INTEREST BORROWERS PAY AND HOMEOWNERS TYPICALLY RELY ON THESE FORMS IN CLAIMING MORTGAGEINTEREST DEDUCTIONS BUT THESE FORMS OFTEN CONTAIN SIGNIFICANT ERRORS THAT CAN COST YOU LARGE AMOUNTS OF TIME AGGRAVATION AND MONEY WARNS GINGER M BRODERICK A CERTIFIED PUBLIC ACCOUNTANT IN NEW YORK CITY MAKE SURE YOUR FORM IS CORRECT OR BE PREPARED FOR LENGTHY CORRESPONDENCE WITH THE IRS WARNS EDWARD HARRIS A SAN DIEGO TAX ADVISER A COMMON PROBLEM OCCURS WHEN HOMEOWNERS MAIL CHECKS IN LATE DECEMBER FOR PAYMENTS DUE JAN 1 SAYS ROBERT J GARNER OF ERNST & YOUNG SOME LENDERS MAY NOT RECEIVE THESE PAYMENTS IN TIME TO INCLUDE ON FORM 1098 IF THAT HAPPENS YOU MAY DEDUCT THE AMOUNT YOU ACTUALLY PAID BUT ATTACH A STATEMENT TO YOUR RETURN EXPLAINING THE DIFFERENCE MR GARNER SAYS MORE TAX DEADBEATS FEEL THE HEAT FROM THEIR OWN COLLEAGUES MORE LAW AND ACCOUNTING FIRMS ARE TRYING TO ENSURE THAT ALL THEIR PARTNERS FILE TAX RETURNS SAYS CARR FERGUSON A LAWYER AT DAVIS POLK & WARDWELL AND HEAD OF THE AMERICAN BAR ASSOCIATION'S TAX SECTION SOME BIG FIRMS ASK PARTNERS TO SIGN FORMS CONFIRMING THEY HAVE FILED RETURNS OR TO PROVIDE EVIDENCE OF FILING OTHERS ASK FOR A SIGNED CONSENT FORM ALLOWING THE FIRM TO FIND OUT DIRECTLY FROM THE IRS IF A PERSON FILED A RETURN IN RECENT YEARS WHILE SOME FIRMS MAY REGARD THE IRS PROGRAM AS TOO INTRUSIVE EVERY PROFESSIONAL FIRM SHOULD TAKE SOME STEPS TO ASSURE ITSELF ALL PARTNERS ARE CURRENT FILERS SAYS MR FERGUSON THE IRS SAYS ITS PROGRAM HAS TURNED UP VERY FEW NONFILERS THUS FAR BUT SHIRLEY D PETERSON A WASHINGTON LAWYER AT STEPTOE & JOHNSON AND THE FORMER IRS COMMISSIONER SAYS AN IRS STUDY SEVERAL YEARS AGO UNCOVERED A SURPRISINGLY LARGE NUMBER OF PROFESSIONAL PREPARERS WHO HADN'T FILED RETURNS MANY FIRMS REFUSE TO CHECK ON EMPLOYEES FEARING VIOLATING THEIR PRIVACY OR ALIENATING VALUED COLLEAGUES COME CLEAN THERE ARE ABOUT 75 MILLION PEOPLE WHO SHOULD BE FILING TAX RETURNS BUT AREN'T IRS OFFICIALS SAY RESULTS OF THE IRS'S CAMPAIGN TO PERSUADE MORE NONFILERS TO STEP FORWARD WILL BE RELEASED TUESDAY AT A MEETING OF THE IRS COMMISSIONER'S 24MEMBER ADVISORY GROUP DUELING FORECASTS STATE AND LOCAL GOVERNMENTS WILL ISSUE 1786 BILLION OF NEW LONGTERM TAXFREE BONDS THIS YEAR PREDICTS THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP NO IT WILL BE 240 BILLION SAYS A POLL OF 830 GOVERNMENTFINANCE DIRECTORS BY MUNICIPAL BOND INVESTORS ASSURANCE CORP SAYS A PSA OFFICIAL WE SURE HOPE WE'RE WRONG A TINY GROUP OF COMPANIES PAID MOST OF NEW YORK CITY'S GENERAL CORPORATE TAXES IN 1990 THE CITY SAYS THE TOP 10 OF CORPORATE FILERS REPRESENTED 85 OF THE TOTAL THE TOP 1 ACCOUNTED FOR 57 OF THE TOTAL AN IRS CRACKDOWN BEGINS ON LAWYERS WHO WON'T IDENTIFY CERTAIN CLIENTS THE IRS FULFILLING A PLEDGE IT MADE LAST MONTH HAS LAUNCHED A CAMPAIGN TO FORCE MORE LAWYERS TO DISCLOSE THE NAMES OF CLIENTS WHO PAY THEM CASH FEES OF MORE THAN 10000 IN ONE TRANSACTION OR IN TWO OR MORE RELATED TRANSACTIONS THE IRS RECENTLY SENT LETTERS TO NUMEROUS LAWYERS IMPOSING HEFTY FINES FOR FAILING TO PROVIDE DETAILED INFORMATION ABOUT CLIENTS ON FORM 8300 OF THE 796 LAWYERS WHO FILED THIS FORM IN THE FIRST EIGHT MONTHS OF 1993 465 FILED INCOMPLETE FORMS THE IRS SAYS FINES CAN RANGE FROM 25000 TO 100000 FOR EACH TRANSACTION BUT SOME LAWYERS PLAN TO FIGHT BACK THEY SAY REPORTING THIS DATA WOULD VIOLATE LAWYERCLIENT PRIVILEGE THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS MET RECENTLY WITH IRS AND JUSTICE DEPARTMENT OFFICIALS JOHN HENRY HINGSON III AN OREGON LAWYER AND HEAD OF THE CRIMINALDEFENSE LAWYERS GROUP SAYS A RECENT KANSAS CASE UNDERSCORES THE NEED FOR THE IRS TO RECONSIDER ITS POSITION THE PENALTIES PLACE LAWYERS IN AN IMPOSSIBLE POSITION HE SAYS BUT HINGSON ACKNOWLEDGES WE'RE NOT TOO HOPEFUL OF PERSUADING THE IRS TO CHANGE ITS MIND ANYTIME SOON BRIEFS LENIENCY IRSSTYLE THE IRS SAYS CALIFORNIA EARTHQUAKE VICTIMS WHO DIDN'T FILE THEIR ESTIMATED TAXES BY JAN 18 ARE ENTITLED TO AN EXTENSION UNTIL FRIDAY BUZZWORDS WASHINGTON LOBBYISTS SEARCH FOR A TAX VEHICLE TRANSLATION A NONCONTROVERSIAL TAX BILL THEY CAN PERSUADE LAWMAKERS TO AMEND 9401260092 940126 ABREAST OF THE MARKET ISSUES RETREAT AGAIN AS CONCERNS OVER LAPSES SPUR PROFITTAKING BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS RETREATED FOR A SECOND STRAIGHT DAY AS WORRISOME TECHNICAL SIGNS INSPIRED MORE PROFITTAKING ECONOMICALLY SENSITIVE ISSUES WHICH MANAGED TO AVOID THE SELLING MONDAY WERE AMONG THE BIGGEST DECLINERS BETHLEHEM STEEL DROPPED 2 1/8 TO 21 5/8 CATERPILLAR FELL 1 5/8 TO 98 5/8 AND ALLIEDSIGNAL SLIPPED 1 1/8 TO 77 7/8 THE DOW JONES INDUSTRIAL AVERAGE POSTED ITS BIGGEST LOSS OF THE YEAR SLIDING 1745 OR 045 TO 389534 IT DIPPED BELOW THE 3900 MARK FOR THE FIRST TIME SINCE ITS INITIAL MOVE OVER THAT LEVEL FRIDAY MOST BROADER INDEXES FELL SOMEWHAT LESS THAN THE INDUSTRIAL AVERAGE DECLINING ISSUES LED ADVANCERS 1202 TO 883 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE EXCHANGE WAS ACTIVE AT ABOUT 326 MILLION SHARES UP FROM 2969 MILLION SHARES MONDAY ALTHOUGH THE DOW INDUSTRIALS HAVE SET A SERIES OF RECORDS AND JUMPED ABOUT 4 IN THE YEAR TO DATE MOST BROADBASED INDEXES ARE UP ONLY ABOUT 1 THE STANDARD & POOR'S 500STOCK INDEX MEANWHILE HAS ONLY SET ONE NEW HIGH THE S&P 500 LOST 105 OR 022 TO 47092 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 062 OR 024 TO 26113 WILLIAM DODGE MARKET STRATEGIST AT DEAN WITTER REYNOLDS SAID SOME INVESTORS WENT BARGAINHUNTING IN CONSUMER NONDURABLE GROUPS SUCH AS DRUG MAKERS PFIZER ADDED 1/2 TO 62 JOHNSON & JOHNSON RALLIED 1/2 TO 40 7/8 AND SCHERINGPLOUGH ROSE 1/2 TO 62 5/8 MERCK JUMPED 1 TO 35 3/4 AFTER THE PHARMACEUTICALS GIANT IN WHITEHOUSE STATION NJ RECORDED FOURTHQUARTER NET INCOME OF 56 CENTS A SHARE UP FROM 53 CENTS LAST YEAR INTERNATIONAL BUSINESS MACHINES WAS IN THE SPOTLIGHT MUCH OF YESTERDAY AFTER ITS STOCK TUMBLED ON ITS LATE MORNING EARNINGS RELEASE BIG BLUE'S SHARES SKIDDED AS LOW AS 55 3/8 BEFORE RECOVERING LATE IN THE DAY TO FINISH AT 58 1/4 OFF JUST 3/8 AS EXPECTED THE TROUBLED ARMONK NY COMPUTER MAKER POSTED ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR BUT INVESTORS WERE INITIALLY CONCERNED ABOUT LOWERTHANEXPECTED REVENUE IN THE PERIOD THEY WERE REASSURED LATER IN THE DAY WHEN IBM SAID IT LIKELY WILL STAY OUT OF THE RED IN THE FIRST QUARTER ELSEWHERE COOPER INDUSTRIES PLUNGED 9 7/8 OR 19 TO 41 5/8 THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 78 CENTS A SHARE UP FROM 73 CENTS A SHARE LAST YEAR BUT BELOW THE 81 CENTS EXPECTED BY ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM CONSORTIUM GRUPO DINA SKIDDED 6 3/8 OR 21 TO 23 7/8 AFTER THE MEXICAN TRUCK MAKER SAID ITS EARNINGS FELL TO 247 MILLION PESOS 8 MILLION IN THE FOURTH QUARTER FROM 85 MILLION PESOS A YEAR AGO IT SAID TRUCK SALES FELL 10 FOR ALL OF 1993 AMERICAN EXPRESS ADDED 1 1/4 TO 32 3/4 THE NEW YORK FINANCIAL SERVICES COMPANY LATE MONDAY REPORTED FOURTHQUARTER EARNINGS OF 78 CENTS A SHARE UP FROM 15 CENTS A SHARE A YEAR EARLIER AND RELEASED DETAILS OF ITS LONGANTICIPATED PLAN TO SPIN OFF ITS LEHMAN BROTHERS UNIT DEAN WITTER DISCOVER LOST 5/8 TO 37 3/4 THE NEW YORK BROKERAGE AND CREDIT CARD FIRM EARNED 81 CENTS A SHARE IN THE FOURTH QUARTER UP FROM 51 CENTS A SHARE A YEAR AGO BUT JUST BELOW THE 82 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES AIRLINE STOCKS SLIPPED AS MAJOR CARRIERS SAID THEY WILL MATCH FARE CUTS INITIATED BY TRANS WORLD AIRLINES AMR THE PARENT OF AMERICAN AIRLINES DROPPED 1 1/8 TO 68 3/8 DELTA AIR LINES LOST 1 TO 53 7/8 AND SOUTHWEST AIRLINES DECLINED 7/8 TO 36 1/8 SPECTRUM INFORMATION SKIDDED 1 TO 6 5/16 ON THE NASDAQ STOCK MARKET AFTER CNBC CABLE TELEVISION REPORTED RUMORS THAT FORMER APPLE COMPUTER CHIEF EXECUTIVE OFFICER JOHN SCULLEY WAS RESIGNING FROM THE TOP POSITIONS AT SPECTRUM MANHASSET NY AND THAT THE COMPANY WAS THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION MR SCULLEY DENIED BOTH RUMORS BUT THE COMPANY SAID LAST NIGHT THAT IT WAS IN FACT THE SUBJECT OF AN SEC PROBE CENTERING ON THE VALUE OF ITS LICENSING AGREEMENTS CHEVRON WAS OFF 1/8 TO 92 1/2 MOBIL EASED 3/8 TO 79 7/8 AND EXXON ADDED 1/8 TO 66 1/4 AFTER EACH REPORTED IMPROVED EARNINGS FROM OPERATIONS BUT OILFIELDSERVICE STOCKS TUMBLED BAKER HUGHES LOST 1 1/4 TO 20 1/4 SCHLUMBERGER DROPPED 1 3/8 TO 57 1/4 AND HALLIBURTON SLIPPED 1 3/8 TO 31 5/8 ON NASDAQ AMERICAN DEPOSITARY RECEIPTS OF LM ERICSSON A SWEDISH TELECOMMUNICATIONS COMPANY LOST 2 1/4 TO 43 3/4 AFTER GOLDMAN SACHS DOWNGRADED THE ISSUE TO MARKET UNDERPERFORMER FROM MARKET PERFORMER CHEYENNE SOFTWARE CLIMBED 1 1/8 TO 33 3/8 ON THE AMEX THE COMPANY IN ROSLYN NY REPORTED EARNINGS OF 33 CENTS A SHARE FOR THE SECOND QUARTER ENDED DEC 31 UP FROM 17 CENTS A SHARE A YEAR EARLIER ECONOMICALLY SENSITIVE STOCKS HAVE PROVIDED MUCH OF THE FUEL FOR THE ROCKETING DOW INDUSTRIALS THAT MARKET SECTOR FINALLY LURED PROFITTAKERS YESTERDAY RICKY HARRINGTON A TECHNICAL ANALYST AT INTERSTATE/JOHNSON LANE SAID MANY INVESTORS ARE BECOMING WORRIED ABOUT THE NARROW NATURE OF THE MARKET'S RECENT GAINS ANALYSTS OFTEN VIEW SUCH LIMITED STRENGTH AS A SIGN OF TECHNICAL WEAKNESS 9401260091 940126 BUSINESS BRIEF PUBLIC SERVICE CO OF COLORADO EARLY RETIREMENT SEVERANCE OFFERED AS WAY TO CUT STAFF PUBLIC SERVICE CO OF COLORADO DENVER SAID IT WILL OFFER ITS EMPLOYEES EARLY RETIREMENT OR VOLUNTARY SEVERANCE PACKAGES AS PART OF AN EFFORT TO CUT ITS WORK FORCE THE COMPANY SAID IT PLANS TO REDUCE THE NUMBER OF EMPLOYEES BY AS MANY AS 750 PS COLORADO HAS ABOUT 6325 EMPLOYEES ABOUT 600 EMPLOYEES WILL BE ELIGIBLE TO TAKE THE PACKAGES ON A VOLUNTARY BASIS THE PACKAGES WILL BE AVAILABLE STARTING FEB 4 EMPLOYEES WHO CHOOSE TO TAKE A PACKAGE WILL LEAVE THE COMPANY BY MARCH 31 LATER THIS YEAR PUBLIC SERVICE MAY LOOK AT OFFERING ADDITIONAL PACKAGES AND POSSIBLE LAYOFFS 9401260089 940126 ECONOMY COMPENSATION IN '93 CLIMBED A SLIM 35 MATCHING RATE IN '92 WASHINGTON FASTER WAGE INCREASES AND A SLOWDOWN IN BENEFIT COSTS PRODUCED A 35 INCREASE IN AVERAGE WORKER COMPENSATION LAST YEAR MATCHING THE 1992 INCREASE WHICH WAS THE LOWEST IN A DECADE THE LABOR DEPARTMENT FIGURES SUGGEST THAT LABOR COST INFLATION IS WELL UNDER CONTROL INCREASES IN COMPENSATION COSTS HAVE BEEN SLOWING SINCE 1988 WAGES AND SALARIES MEANTIME ARE FINALLY PICKING UP MOMENTUM AFTER SLOWING IN GROWTH SINCE 1989 WAGES ROSE 31 LAST YEAR FOLLOWING A RISE OF ONLY 27 IN 1992 THE 1993 INCREASE WAS STILL SMALL BUT TOPPED LAST YEAR'S INFLATION RATE OF 27 SERVICEPRODUCING AND NONMANUFACTURING INDUSTRIES SHOWED THE BIGGEST WAGE GAINS WE ARE PAST BOTTOM IN HOURLY WAGES SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY FINALLY THE FIGURES SUGGEST THAT BENEFIT COSTS DRIVEN MAINLY BY HEALTH CARE ARE CONTINUING TO MODERATE COMPANIES ARE RESISTING BENEFIT INCREASES TO HOLD DOWN COSTS WHILE AT THE SAME TIME THE HEALTHCARE INDUSTRY UNDER FIRE FROM THE CLINTON ADMINISTRATION IS LOOKING FOR WAYS TO CONTROL PRICES BENEFIT COSTS WERE UP 46 FOR THE YEAR AFTER RISING 53 IN 1992 THESE COSTS HAVE SLOWED THE MOST AT THE STATE AND LOCAL GOVERNMENT LEVEL THE RISE IN PRIVATESECTOR BENEFIT COSTS ALSO SLOWED ANALYSTS SAID YESTERDAY THAT THE NEWS FOR EMPLOYERS IN TERMS OF COMPENSATION COSTS IS PROBABLY ABOUT AS GOOD AS IT IS GOING TO GET THE LABOR MARKET IS LIKELY TO CONTINUE GETTING BETTER AS THE ECONOMY IMPROVES AND THAT WILL HELP KEEP WAGES FIRM ALSO WHILE HEALTHCARE COSTS HAVE BEEN MODERATING ANALYSTS PREDICT THEY WILL CONTINUE TO RISE FASTER THAN THE INFLATION RATE HEALTH CARE IS A VERY LABORINTENSIVE SECTOR AND IT'S HARD TO HOLD COSTS DOWN SAID WASHINGTON ECONOMIC CONSULTANT JOEL POPKIN COMPENSATION COSTS ROSE 08 IN THE FOURTH QUARTER THE SAME AS IN THE THIRD PERIOD WAGES AND SALARIES ROSE 07 IN THE FOURTH QUARTER COMPARED WITH A 08 RISE IN THE THIRD QUARTER AND BENEFIT COSTS ROSE 10 FOLLOWING A 09 INCREASE IN THE PREVIOUS QUARTER QUARTERLY FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9401260088 940126 EXXON REPORTS 4THQUARTER NET CLIMBED BY 71 EARNINGS FELL 32 AT MOBIL AND 73 AT CHEVRON AS CHARGES HURT BOTH BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL EXXON CORP CAPITALIZING ON ITS FARFLUNG INTERNATIONAL OPERATIONS REPORTED A 71 INCREASE IN FOURTHQUARTER NET INCOME DESPITE SHARPLY LOWER OIL PRICES MEANWHILE NET FOR TWO OTHER OIL GIANTS TUMBLED AS MOBIL CORP AND CHEVRON CORP SAW HUGE CHARGES TAKE A BITE OUT OF THEIR BOTTOM LINES PROFIT AT MOBIL FELL 32 AT CHEVRON 73 EXXON AND MOBIL BOTH POSTED OPERATING PROFIT THAT WAS AHEAD OF ANALYSTS' EXPECTATIONS GIVEN THE HAVOC CAUSED BY THE RECENT OILPRICE DECLINE EARNINGS FROM THEIR REFINING AND MARKETING BUSINESSES WERE STRONGER THAN WE THOUGHT THEY WOULD BE SAID PAUL MLOTOK OIL ANALYST FOR MORGAN STANLEY & CO IN NEW YORK MR MLOTOK SAID THAT AN AGGRESSIVE COSTCUTTING PROGRAM AT MOBIL HELPED TO PROP UP ITS REFINING AND MARKETING OR DOWNSTREAM BUSINESS WHILE EXXON'S DIVERSIFICATION OVERSEAS IN THAT SECTOR PROVIDED SUPPORT CHEVRON'S EARNINGS MET MARKET EXPECTATIONS WITH ITS DOWNSTREAM BUSINESS MAKING A LACKLUSTER SHOWING EVEN A STRONG PERFORMANCE FROM THE DOWNSTREAM SECTOR OF CHEVRON'S PIECE OF THE CALTEX OPERATION IT SHARES WITH TEXACO INC IN THE FAR EAST DIDN'T PROVIDE ENOUGH POWER TO OVERRIDE THE EFFECTS OF LOWER OIL PRICES AND MUCH OF CHEVRON'S REFINING AND MARKETING OPERATIONS IN THE US IS LOCATED ON THE WEST COAST A LOCALE STILL BEING PLAGUED BY A PARTICULARLY WEAK ECONOMY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY EXXON STOCK ROSE 125 CENTS OR 02 TO CLOSE AT 6625 A SHARE BUT MOBIL SHARES FELL 375 CENTS OR 05 TO CLOSE AT 79875 AND CHEVRON STOCK FELL 125 CENTS OR 01 TO CLOSE AT 9250 A SHARE EXXON'S REVENUE IN THE QUARTER FELL 96 TO 2784 BILLION FROM 3079 BILLION ALL OF EXXON'S BUSINESSES MADE A STRONG SHOWING COMPARED WITH OTHER OIL COMPANIES ANALYSTS SAID ACCORDING TO CHAIRMAN LEE R RAYMOND NET INCOME FOR THE FOURTH QUARTER WAS EXXON'S HIGHEST QUARTERLY EARNINGS SINCE THE FIRST QUARTER OF 1991 IN EXXON'S CASE THE DECLINE IN OIL PRICES WAS PARTLY OFFSET BY AN INCREASE IN OIL AND GAS PRODUCTION LARGELY THROUGH THE STARTUP OF SEVERAL OIL AND GAS PROJECTS IN ADDITION REFINING AND MARKETING EARNINGS FOR THE QUARTER JUMPED BY MORE THAN 60 OVER THE SAME PERIOD LAST YEAR AS SALES AND PROFIT MARGINS INCREASED THE COMPANY CLAIMS THAT LOWER COSTS FOR CRUDE THE RAW MATERIAL FROM WHICH OIL PRODUCTS ARE MADE HELPED TO OVERCOME THE DECLINE IN PRODUCT PRICES PROFIT FROM THE COMPANY'S EXPLORATION AND PRODUCTION BUSINESS DECLINED ONLY SLIGHTLY PROFIT FROM THE CHEMICAL SECTOR WHICH FOR YEARS HAS BEEN A WEAK AREA OF THE PETROLEUM BUSINESS FOR THE ENTIRE INDUSTRY MORE THAN DOUBLED TO 133 MILLION SEPARATELY EXXON ANNOUNCED YESTERDAY THAT IT HAS TAKEN ANOTHER STEP TOWARD GETTING A HUGE NATURALGAS PROJECT IN VENEZUELA OFF THE GROUND EXXON SAID IT HAD SIGNED AN AGREEMENT TO SET UP A COMPANY TO LOOK INTO THE VIABILITY OF THE GIANT CRISTOBAL COLON PROJECT WHICH HAS BEEN IN THE WORKS FOR SEVERAL YEARS AN INFORMAL AGREEMENT HAD BEEN REACHED EARLY LAST YEAR THE TRANSACTION INCLUDES EXXON MITSUBISHI CORP AND UNITS OF THE VENEZUELAN OIL COMPANY AND ROYAL DUTCH/SHELL GROUP OF COS MOBIL'S OPERATING PROFIT IN THE FOURTH QUARTER ROSE 34 TO 602 MILLION CHAIRMAN ALLEN MURRAY ATTRIBUTED THE IMPROVEMENT TO A STRONG PERFORMANCE IN THE REFINING AND MARKETING BUSINESS DOWNSTREAM OPERATIONS IN THE US AND FAR EAST WERE ESPECIALLY LUCRATIVE HE SAID ECHOING ANALYSTS' COMMENTS MR MURRAY ALSO SAID THAT MOBIL'S DOWNSTREAM BUSINESSES WERE STILL BENEFITING FROM AGGRESSIVE COSTCUTTING PROGRAMS OF RECENT YEARS HE ALSO SAID THAT CORRALLING COSTS CONTINUES TO BE A PRIORITY AT THE COMPANY DURING THE FOURTH QUARTER MOBIL TOOK A CHARGE OF 253 MILLION OF WHICH 250 MILLION WAS RELATED TO INVENTORY ADJUSTMENTS WITHOUT THAT CHARGE OPERATING PROFIT FOR THE QUARTER WOULD HAVE BEEN 602 MILLION MOBIL SAID EXPLORATION AND PRODUCTION OPERATIONS OVERSEAS WERE PROFITABLE DESPITE LOWER OIL PRICES OPERATING PROFIT IN THAT SECTOR EDGED HIGHER AS OIL PRODUCTION GREW PRIMARILY IN NIGERIA AND THE UK AREA OF THE NORTH SEA HIGHER NATURALGAS PRICES HELPED TO OFFSET LOWER OIL PRICES ESPECIALLY IN THE US MOBIL'S REVENUE IN THE QUARTER FELL BY 43 TO 1686 BILLION FROM 1762 BILLION CHEVRON'S FOURTHQUARTER REVENUE FELL 16 TO 891 BILLION FROM 1066 BILLION CHEVRON'S BOTTOM LINE FOR THE QUARTER WAS HIT HARD BY A HUGE CHARGE THAT ENCOMPASSED NOT ONLY THE COST OF THE COMPANY'S CONTINUING RESTRUCTURING BUT INCLUDED AS WELL PART OF A CHARGE FOR THE PLANNED SALE OF TWO OF ITS REFINERIES EXCLUDING SPECIAL ITEMS THE COMPANY'S OPERATING PROFIT DECLINED BY ONLY 5 TO 515 MILLION ACCORDING TO CHEVRON'S CHIEF EXECUTIVE OFFICER KENNETH DERR THE COMPANY WAS ABLE TO MAINTAIN A RELATIVELY STRONG OPERATING PERFORMANCE BECAUSE OF THE STRENGTH OF ITS INTERNATIONAL OPERATIONS IN BOTH THE UPSTREAM AND DOWNSTREAM BUSINESSES AND THAT WAS DESPITE LOWER OIL PRICES DURING THE FOURTH QUARTER THE COMPANY RECEIVED AN AVERAGE OF 1275 A BARREL FOR ITS OIL 4 LESS THAN DURING THE SAME PERIOD LAST YEAR QUARTERLY NATURALGAS PRICES REALIZED BY CHEVRON RAN AT ABOUT 2 PER THOUSAND CUBIC FEET 25 CENTS LESS THAN LAST YEAR DURING THE SAME PERIOD CHEVRON CORP'S FOURTHQUARTER NET INCOME DIDN'T INCLUDE CHARGES FOR THE PLANNED SALE OF TWO REFINERIES THOSE CHARGES WERE TAKEN IN THE SECOND QUARTER AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE CHARGES WERE INCLUDED IN FOURTHQUARTER RESULTS 9401260087 940126 TALK OF TALLADEGA TOWN IS STUMPED ABOUT JERRY JACKSON WHERE HE IS AND WHAT HE DID EVEN WHETHER HE EXISTS HAVE TONGUES WAGGING BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL TALLADEGA ALA THE MOSTWANTED MAN IN THIS DEEP SOUTH TOWN IS A TALL DARK DRIFTER KNOWN AS JERRY JACKSON AT THE WINN DIXIE SUPERMARKET RUMORS FLY THAT HE WAS SEEN WITH ANOTHER JACKSON MICHAEL AT THE SINGER'S NEVERLAND RANCH SOME SPECULATE HE WAS PART OF THE PLOT TO KNEECAP SKATER NANCY KERRIGAN THE POLICE RECENTLY GOT A DIFFERENT TIP WE HEARD THAT JERRY JACKSON WAS AT A FOOTBALL GAME WITH BEAR BRYANT SAYS CAPT WILLARD PEEWEE HURST REFERRING TO THE FAMED ALBEIT DEAD ALABAMA COACH IN FACT ABOUT THE ONLY PLACE THE ELUSIVE MR JACKSON HASN'T BEEN SPOTTED IS HERE IN TALLADEGA WHERE HE IS WANTED IN CONNECTION WITH FRAUD ALLEGATIONS LARRY BARTON THE TOWN'S LONGTIME MAYOR IS UNDER FEDERAL INDICTMENT FOR PAYING MR JACKSON MORE THAN 20000 IN TOWN FUNDS FOR TREESTUMP REMOVAL THAT POLICE SAY NEVER TOOK PLACE MR BARTON IS CHARGED WITH LAUNDERING THE MONEY AND POCKETING IT HIMSELF IT'S A BUNCH OF JUNK SAYS THE FEISTY 53YEAROLD MAYOR THE ONLY THING I KNOW ABOUT MONEY LAUNDERING IS WHEN MY WIFE WASHES A DOLLAR BILL IN MY PANTS THE MAYOR ALSO SCOFFS AT CLAIMS THAT HE PAID A PHANTOM WORKMAN MR JACKSON HE EXPLAINS GOES FROM TOWN TO TOWN WITH A MACHINE THAT GRINDS STUMPS INTO SAWDUST HE DID HIS WORK QUIETLY AND MOVED ON GUY DID A SUPER JOB THE MAYOR SAYS BUT TOWNSPEOPLE SUSPECT THAT THE ONLY THING WORKING OVERTIME IS THE MAYOR'S IMAGINATION IN A TOWN SO TIGHTKNIT THAT HOSPITAL ADMISSIONS ARE REPORTED IN THE LOCAL PAPER FOLKS SAY IT SIMPLY ISN'T POSSIBLE THAT A STRANGER CHEWED UP TREE STUMPS FOR OVER A YEAR WITHOUT ATTRACTING NOTICE TALLADEGA'S LIKE PEYTON PLACE EVERYBODY'S INTO EVERYBODY'S BUSINESS SAYS CASEY GIP STUDDARD A SALESMAN AT COWBOY HUBBARD'S FARMERS TRADING POST A GENERAL STORE FULL OF SEEDS BAGS OF PECANS AND ELDERLY MEN SWAPPING GOSSIP THE MAN MUST HAVE BOUGHT GROCERIES ADDS ROBERT NABORS A RETIRED MILL WORKER SOMEONE WOULD HAVE SEEN HIM OR HEARD HIM AT LEAST THOMAS GREENE HAS BEEN GRINDING STUMPS FOR YEARS AND SAYS IT ISN'T EXACTLY LOWPROFILE WORK TO PROVE HIS POINT HE STARTS UP HIS STUMPGRINDER AN UNGAINLY MACHINE WITH WHIRRING BELTS AND METAL TEETH THIS IS NOTHING HE SHOUTS OVER THE DEAFENING ROAR WHEN YOU'VE GOT IT GRINDING STUMP YOU CAN HEAR IT FOR 10 CITY BLOCKS IT'D WAKE THE DEAD LIKE OTHERS IN TOWN MR GREENE IS EAGER TO MEET MR JACKSON MR GREENE EARNED JUST 2600 LAST YEAR GRINDING STUMPS AND WONDERS HOW HIS MYSTERIOUS COMPETITOR EARNED NEARLY 10 TIMES THAT MUCH I WANT TO SEE WHAT KIND OF MACHINE HE'S GOT SO I CAN GET ONE TOO HE SAYS DESPITE SUCH SKEPTICISM MAYOR BARTON HAS STUCK TO HIS STORY AND THEN SOME HE OFFERS A VIVID PROFILE OF MR JACKSON 6FOOT1 195TO215 POUNDS DARK HAIR PROBABLY HISPANIC HE KEEPS SEVERAL LETTERS FROM MR JACKSON ON HIS DESK AND HE DRIVES A VISITOR DOWN RESIDENTIAL STREETS WHERE HE SAYS MR JACKSON REMOVED MANY OF THE UGLY UNSIGHTLY STUMPS LEFT BY TORNADOES AND OTHER STORMS THERE WAS A STUMP RIGHT THERE THAT'S BEEN DUG UP HE SAYS POINTING AT A SHALLOW CRATER BY THE CURB AND SEE THAT LITTLE INDENTURE THAT WAS ANOTHER ASKED IF MR JACKSON CREATED THESE SPECIFIC STUMP HOLES THE MAYOR DEMURS I'M ASSUMING HE GOT SOME OF THOSE WE JUST GAVE HIM A SECTION OF TOWN TO WORK WE DON'T FOLLOW OUR WORKERS AROUND POLICE HOWEVER HAVEN'T FOUND ANYONE WHO WITNESSED MR JACKSON'S WORK NOR IS THERE AN ELECTRICITY BILL OR OTHER PROOF OF MR JACKSON'S STAY IN TOWN MEANWHILE RESIDENTS OF TALLADEGA A TOWN OF 19000 MIDWAY BETWEEN BIRMINGHAM ALA AND ATLANTA HAVE LAUNCHED A LIGHTHEARTED MANHUNT OF THEIR OWN JERRY JACKSON WAS SPOTTED YESTERDAY IN MEMPHIS NORMAN CULVER TELLS COWORKERS AT A FACTORY CAFETERIA HE WAS EATING LUNCH WITH ELVIS AT BURGER KING OR SOMETHING NOT SO SAYS SUSAN SPRINGFIELD A LOCAL SCHOOLTEACHER HE WAS BURIED IN THE RUBBLE IN LA OTHERS IN TALLADEGA HOPE THAT MR JACKSON REMAINS AT LARGE ONE POPULAR TSHIRT SHOWS A MAN'S HEAD WITH A QUESTION MARK FOR A FACE AND A CAPTION THAT READS TALLADEGA'S JERRY JACKSON KEEP 'EM STUMPED PEOPLE HERE ALSO ENJOY PLAYING PERRY MASON AT THE FACTORY MR CULVER WONDERS WHY A MAN WHOM THE MAYOR DESCRIBES AS HISPANIC IS NAMED JERRY JACKSON IT SHOULD BE BUBBA GONZALES OR SOMETHING HE SAYS THEN THERE'S THE MATTER OF MR JACKSON'S PENMANSHIP IN RECENT MONTHS THE MAYOR HAS RECEIVED SEVERAL LETTERS SIGNED JERRY JACKSON AND SENT FROM AROUND THE COUNTRY THE LAST TIME I HEARD FROM JERRY HE WAS IN FLORIDA THE MAYOR SAYS OFFERING A CHRISTMAS CARD WITH A SHAKY CHILDLIKE SIGNATURE AND APPROPRIATELY A JACKSONVILLE POSTMARK BUT THE TOWN COUNCILOR WHO BROUGHT CHARGES AGAINST THE MAYOR HOWARD RIP WILLIAMS GREETS SUCH EVIDENCE WITH GUFFAWS MOVING A PEN FROM HIS RIGHT HAND TO HIS LEFT MR WILLIAMS SCRIBBLES A JERRY JACKSON SIGNATURE MUCH LIKE THAT ON THE MAYOR'S LETTERS JERRY MUST BE A REAL NERVOUS WRITER HE SAYS POLICE SAY THE LETTERS HAVE GENERAL DELIVERY AS A RETURN ADDRESS MAKING THEM HARD TO TRACE AND POLICE TOO HAVE JOINED IN THE FUN A MOCK POSTCARD ON CAPT HURST'S BULLETIN BOARD READS TO TALLADEGA PD KEEP UP THE GOOD WORK BEST WISHES AND HAPPY NEW YEAR THE SIGNATURE IS IN THE TREMULOUS HAND OF JERRY JACKSON SUCH HUMOR IS STARTING TO GET A LITTLE OLD FOR JERRY JAMMING JACKSON THE TALLADEGA DISK JOCKEY HAS HAD TO ENDURE NONSTOP RIBBING SINCE THE SEARCH FOR HIS NAMESAKE BEGAN PEOPLE ARE ALWAYS ASKING ME WHAT I DID WITH THE STUMPS AND WITH MY SHARE OF THE MONEY I DON'T EVEN CUT FIREWOOD THE MAYOR BY CONTRAST SEEMS UNFLUSTERED OF MR JACKSON'S CRUDE HANDWRITING HE SAYS JERRY CAN'T WRITE WORTH A FLIP AND HE BLAMES THE WHOLE FUSS ON POLITICAL FOES YOU CAN HAVE A HAM SANDWICH INDICTED BY A GRAND JURY HE SCOFFS THE SON OF MILL WORKERS MR BARTON MARRIED AT 16 WENT TO WORK BAGGING GROCERIES AT 50 CENTS AN HOUR AND ROSE FAR ENOUGH TO LOSE A RACE FOR LIEUTENANT GOVERNOR OF ALABAMA HE LIVES IN A MODEST HOUSE WITH AN AMERICAN FLAG OUT FRONT AND IS REGARDED AS AN ACCESSIBLE POLITICIAN I GO TO A FUNERAL A DAY THE MAYOR SAYS THE SLOGAN OF HIS LAST CAMPAIGN Y'ALL CALL I'LL RETURN YOUR CALL HE HAS ALSO TURNED FOIBLES INTO VOTEGETTERS HE ONCE GAVE A KEY TO THE CITY TO VANESSA WILLIAMS THE MISS AMERICA WHO THEN LOST HER TITLE BECAUSE SHE HAD POSED FOR NUDE PHOTOGRAPHS THE MAYOR ASKED FOR THE KEY BACK THAT SCORED HIM POINTS WITH CONSERVATIVES NOW MANY PEOPLE SUSPECT HE HAS A SIMILAR 11THHOUR STUNT UP HIS SLEEVE INDEED THE MAYOR PROMISES THERE ARE SOME SURPRISING THINGS THAT WILL SURFACE IN COURT ASKED IF THEY MIGHT INCLUDE THE ELUSIVE MR JACKSON THE MAYOR JUST SMILES ANYTHING'S POSSIBLE HE SAYS 9401260086 940126 TWO LIBERAL CHAMPIONS LEAVE HOUSE BRINGING FRESH DEMOCRATS TO THE FORE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WILLIAM FORD AND DON EDWARDS TWO LIBERAL CHAMPIONS OF EDUCATION AND CIVIL RIGHTS ARE THE LATEST IN A SERIES OF RETIRING LAWMAKERS WHOSE DEPARTURES WILL CHANGE THE FACE OF THE HOUSE AND BRING A NEW GENERATION OF DEMOCRATS TO POWER AFTER THE LARGE TURNOVER OF THE 1992 ELECTIONS IN WHICH 110 NEW HOUSE MEMBERS WERE ELECTEDRANKANDFILE LAWMAKERS SEEM ALMOST UNNERVED AS AN ADDITIONAL 38 OF THEIR COLLEAGUES HAVE RESIGNED OR SAID THEY WON'T RUN AGAIN THIS FALL MR FORD A MICHIGAN DEMOCRAT AND CHAIRMAN OF THE EDUCATION AND LABOR COMMITTEE AND MR EDWARDS THE DEAN OF THE CALIFORNIA DELEGATION AND RANKING DEMOCRAT ON THE JUDICIARY COMMITTEE ARE TWO OF THE MOST PROMINENT AND THEIR ANNOUNCEMENTS WITHIN HOURS OF ONE ANOTHER YESTERDAY DRAMATIZE THE PACE OF CHANGE IN COMMITTEES WITH INFLUENCE OVER HEALTH TELECOMMUNICATIONS AND BANKING LEGISLATION THE 66YEAROLD MR FORD FIRST ELECTED IN THE LYNDON JOHNSON LANDSLIDE OF 1964 REMAINS A MAJOR PLAYER ON HEALTH CARE THIS YEAR BUT THE NEXT DEMOCRAT IN LINE REP WILLIAM CLAY OF MISSOURI IS A LESS EFFECTIVE LEADER WHO HAS HURT HIMSELF BY HIS TEMPESTUOUS STYLE ON THE JUDICIARY COMMITTEE THE 79YEAROLD MR EDWARDS IS THE VERY PICTURE OF THE REASONED DIGNIFIED LAWMAKER AND AS THE CHAIRMAN OF THE CIVIL AND CONSTITUTIONAL RIGHTS PANEL HE IS THE THIRD SUBCOMMITTEE CHAIRMAN TO ANNOUNCE HIS RETIREMENT ONLY THIS WEEK REP BILL HUGHES D NJ CHAIRMAN OF THE SUBCOMMITTEE ON INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION SAID HE WILL LEAVE AFTER THIS YEAR AND REP ROMANO MAZZOLI D KY WHO GAVE HIS NAME TO LANDMARK IMMIGRATION LEGISLATION IN THE 1980S HAS SAID PREVIOUSLY HE WON'T SEEK ANOTHER TERM THE IMMEDIATE RESULT IS TO EXPAND THE INFLUENCE OF SUCH YOUNGER MEMBERS AS REP MIKE SYNAR AN AMBITIOUS POPULISTSTYLE OKLAHOMAN WHO AT 44 YEARS OLD NEXT YEAR WOULD RANK ONLY BEHIND CHAIRMAN JACK BROOKS OF TEXAS AND JOHN CONYERS OF MICHIGAN WITH MAJOR TELECOMMUNICATIONS LEGISLATION PENDING MR SYNAR WILL HAVE POWER BASES IN BOTH THE JUDICIARY AND ENERGY AND COMMERCE COMMITTEES WHERE THE RETIREMENT OF REP AL SWIFT D WA CREATES NEW OPPORTUNITIES THE SAME PATTERN IS REPEATED IN THE BANKING COMMITTEE WHERE THE RANKING DEMOCRAT REP STEVE NEAL LAST WEEK ANNOUNCED HE WON'T SEEK REELECTION IN NORTH CAROLINA MR NEAL'S DECISION OPENS UP THE POWERFUL FINANCIAL INSTITUTIONS SUBCOMMITTEE WHICH HE NOW HEADS ONCEJUNIOR DEMOCRATS SUCH AS REP BARNEY FRANK OF MASSACHUSETTS OR NEW YORK REP CHARLES SCHUMER ARE POSITIONED TO EXPAND THEIR POWER I THINK IT'S TIME TO GO AND GO ON MY TERMS MR FORD SAID IN ANNOUNCING HIS RETIREMENT ON THE HOUSE FLOOR WHEN MAJORITY LEADER RICHARD GEPHARDT D MO ROSE MINUTES LATER REPUBLICANS JOKINGLY INVITED HIM TO RETIRE AS WELL BUT FOR BOTH SIDES THE SPATE OF ANNOUNCEMENTS BROUGHT A CERTAIN MELANCHOLY TO THE FIRST DAY OF A NEW SESSION FOR WHICH MANY HAD COME TO THE FLOOR TO EULOGIZE THEIR LATE SPEAKER THOMAS O'NEILL JR HE REP O'NEILL ADDED A HUMOR AND PERSONAL TOUCH THAT HAS BEEN IN SHORT SUPPLY SINCE HE LEFT SAID WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL MR ROSTENKOWSKI COULD BE CAUGHT IN THE UNDERTOW HIMSELF GIVEN A GRAND JURY INVESTIGATION HERE AND A CROWDED PRIMARY FIELD BACK HOME IN CHICAGO THIS SPRING 9401260084 940126 MARKETING BRIEF MACLEAN HUNTER LTD TORONTO SUN WRITES DOWN VALUE OF ASSETS IN THE US TORONTO SUN PUBLISHING CORP WROTE DOWN BY 466 MILLION CANADIAN DOLLARS 355 MILLION THE VALUE OF ASSETS IT PURCHASED IN SEVERAL COSTLY FORAYS INTO THE US NEWSPAPER BUSINESS AFTER THE WRITEDOWN AND A C61 MILLION PROVISION FOR STAFFREDUCTION PROGRAMS THE TORONTO NEWSPAPER PUBLISHER REPORTED A FOURTHQUARTER LOSS OF C494 MILLION OR C207 A SHARE A YEAR EARLIER IT HAD PROFIT OF C723000 OR THREE CANADIAN CENTS A SHARE TORONTO SUN IS 62OWNED BY MACLEAN HUNTER LTD A TORONTO PUBLISHING AND BROADCASTING CONCERN PAUL GODFREY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TORONTO SUN SAID THE COMPANY WROTE DOWN THE ENTIRE C289 MILLION CARRYING VALUE OF SECURITIES RELATED TO ITS FORMER OWNERSHIP OF THE HOUSTON POST NEWSPAPER HE SAID THE COMPANY STILL EXPECTS TO RECOVER THE MONEY EVENTUALLY BUT DECIDED TO TREAT THE ASSET MORE CONSERVATIVELY 9401260083 940126 INTERNATIONAL BRIEF FISONS PLC PHARMACEUTICAL UNIT TO LOSE UP TO 15 OF ITS WORKERS FISONS PLC UNVEILED PLANS TO LAY OFF UP TO 15 OF THE 6400 EMPLOYEES AT ITS PHARMACEUTICAL DIVISION LAST MONTH THE BRITISH COMPANY ABRUPTLY OUSTED CHIEF EXECUTIVE CEDRIC SCROGGS AND ANNOUNCED RESTRUCTURING STEPS THAT IT SAID WOULD WIPE OUT PROJECTED FULLYEAR PROFIT OF 100 MILLION 149 MILLION THE BRUNT OF LAST YEAR'S RESTRUCTURING CHARGE WILL BE USED TO CLEAN UP A FOUNDERING SCIENTIFIC INSTRUMENTS UNIT WITH THE INSTRUMENTS UNIT IN ORDER MANAGEMENT CAN TURN ITS ATTENTION BACK TO THE PHARMACEUTICAL UNIT WHICH ACOUNTS FOR ABOUT ONETHIRD OF SALES BUT TWOTHIRDS OF THE COMPANY'S ANNUAL PRETAX PROFIT SINCE BECOMING CHAIRMAN IN A HASTY MANAGEMENT SHIFT IN LATE 1991 MR EGAN HAS BEEN FORCED TO TACKLE PERSISTENT PROBLEMSINCLUDING COMPLAINTS FROM THE US FOOD AND DRUG ADMINISTRATION THAT PROMPTED WITHDRAWAL OF TWO FISONS DRUGS FROM THE US MARKET 9401260082 940126 WHO'S NEWS CCUBE MICROSYSTEMS CCUBE MICROSYSTEMS MILPITAS CALIF THIS MAKER OF INTEGRATED CIRCUITS ADDED TJ RODGERS 45 YEARS OLD TO ITS BOARD BRINGING THE NUMBER OF DIRECTORS TO SIX MR RODGERS IS CHIEF EXECUTIVE OFFICER OF CYPRESS SEMICONDUCTOR CORP 9401260081 940126 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 59 DAYS 305 60 TO 89 DAYS 308 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 TO 179 DAYS 318 180 TO 249 DAYS 330 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 312 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 255 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 301 ONE MONTH 307 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 301 60 DAYS 303 90 DAYS 306 120 DAYS 310 150 DAYS 316 180 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 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 688 60 DAYS 695 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 687 60 DAYS 697 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401260079 940126 LAW LEGAL BEAT COURT SAYS MAN CAN'T AVOID JAIL TO SAVE HIS BUSINESS AND 30 JOBS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A WHITECOLLAR CRIMINAL CAN'T AVOID PRISON JUST BECAUSE HIS INCARCERATION WOULD DESTROY HIS BUSINESS AND THROW HIS EMPLOYEES OUT OF WORK A FEDERAL APPEALS COURT HAS RULED THE RULING OVERTURNS AN UNUSUAL DECISION BY A PITTSBURGH JUDGE LAST YEAR TO PUT ELLIOTT SHARAPAN ON PROBATION RATHER THAN IMPRISON HIM FOR MAIL FRAUD AND FALSE CORPORATETAX FILINGS US DISTRICT JUDGE BARRON P MCCUNE HAD CONCLUDED THAT SOCIETY WOULD BE BETTER SERVED IF THE COMPANY STAYED AFLOAT AND SOME OF ITS REVENUE WAS AVAILABLE TO ENHANCE THE COMPENSATION AVAILABLE TO VICTIMS OF MR SHARAPAN'S FRAUD THE FEDERAL APPEALS COURT RULING DENYING JUDGE MCCUNE SUCH DISCRETION IS THE LATEST TO ADDRESS AN ISSUE THAT HAS TROUBLED FEDERAL JUDGES FOR SOME TIME UNDER WHAT CIRCUMSTANCES CAN THEY DEPART FROM FEDERAL SENTENCING GUIDELINES AND USE THEIR OWN JUDGMENT ESTABLISHED UNDER THE 1984 SENTENCING REFORM ACT THE GUIDELINES PROVIDE A RANGE OF PRISON SENTENCES FOR SOME 2000 CRIMES TAKING INTO CONSIDERATION SUCH FACTORS AS THE PAST RECORD OF THE DEFENDANT AND VARIOUS EXTENUATING CIRCUMSTANCES THE INTENT WAS TO BRING UNIFORMITY TO PRISON SENTENCES BUT THE GUIDELINES HAVE BEEN CONTROVERSIAL SINCE THEIR INCEPTION MANY JUDGES VIEW THEM AS LEGISLATIVE INTERFERENCE WITH THEIR DISCRETION AND WITH THE JUDICIAL PROCESS THE CONCERNS ARE SIMILAR TO THOSE THAT HAVE BEEN RAISED ABOUT MINIMUM MANDATORY SENTENCES WHICH REQUIRE JUDGES TO IMPOSE PRISON SENTENCES WITHOUT PAROLE FOR CERTAIN CRIMES NO MATTER WHAT THE CIRCUMSTANCES A RELATED IDEA AUTOMATIC LIFE SENTENCES AFTER THREE CONVICTIONS FOR SERIOUS VIOLENT CRIMES HAS RECEIVED BROAD BIPARTISAN SUPPORT IN CONGRESS AND FROM THE CLINTON ADMINISTRATION IN THE PITTSBURGH CASE JUDGE MCCUNE DISREGARDED A GUIDELINE REQUIREMENT THAT HE SENTENCE MR SHARAPAN TO BETWEEN 33 AND 41 MONTHS IN PRISON AND ORDER HIM TO PAY 4079950 IN RESTITUTION PRESIDENT OF RALPH'S DISCOUNT CITY INC A HEALTH AND BEAUTY SUPPLY STORE IN PITTSBURGH MR SHARAPAN FACED A 30COUNT INDICTMENT STEMMING FROM A COUPONREDEMPTION SCAM THAT NETTED HIM 22 MILLION HE PLEADED GUILTY TO TWO COUNTS OF MAIL FRAUD AND TWO COUNTS OF FILING FALSE CORPORATETAX RETURNS IN HANDING DOWN A SENTENCE JUDGE MCCUNE REASONED THAT RALPH'S DISCOUNT AND ITS 30 EMPLOYEES PROBABLY COULDN'T SURVIVE MR SHARAPAN'S INCARCERATION AND THAT IT MADE MORE SENSE FOR HIM TO OPERATE HIS BUSINESS AND PAY BACK HIS VICTIMS ACCORDING TO THE APPEALS COURT OPINION JUDGE MCCUNE INCREASED THE RECOMMENDED AMOUNT OF RESTITUTION TO 300000 PLACED MR SHARAPAN UNDER HOUSE ARREST AT NIGHT FOR TWO YEARS AND ORDERED HIM TO OPERATE HIS BUSINESS CONSCIENTIOUSLY IN OVERTURNING THE SENTENCE THE THIRD US CIRCUIT COURT OF APPEALS IN PHILADELPHIA RULED THAT THE DECISION VIOLATED A FEDERAL SENTENCING POLICY GUIDELINE SPECIFICALLY REQUIRING JUDGES TO REFRAIN FROM TAKING VOCATIONAL SKILLS INTO ACCOUNT WHEN SENTENCING DEFENDANTS THE ONLY EXCEPTION THE APPEALS COURT RULED MIGHT BE WHEN IMPRISONMENT WOULD DEPRIVE SOCIETY OF SOMETHING OF EXTRAORDINARY VALUE RALPH'S DISCOUNT AND ITS EMPLOYEES THE APPEAL COURT RULED DIDN'T MEET THAT TEST WHAT THE GOVERNMENT WAS CONCERNED ABOUT SAID ASSISTANT US ATTORNEY BONNIE R SCHLUETER WHO ARGUED THE CASE IS THAT A DEPARTURE SUCH AS THIS WOULD REALLY DEFEAT ONE OF THE PURPOSES OF THE GUIDELINES TO ENSURE THAT WHITECOLLAR CRIMINALS WERE GIVEN LONG SENTENCES MR SHARAPAN'S ATTORNEY IN PITTSBURGH CHARLES F SCARLATA SAID JUDGE MCCUNE'S SENTENCE WAS APPROPRIATE UNDER THE CIRCUMSTANCES THE APPEALS COURT ORDERED THAT HE BE RESENTENCED WITHIN THE GUIDELINES MR SHARAPAN HAS BEEN FREE PENDING HIS APPEAL AND RESENTENCING AN EMPLOYER CAN BE HELD RESPONSIBLE FOR ACTS OF SEXUAL HARASSMENT BY HIGHLEVEL SUPERVISORY EMPLOYEES EVEN IF THE COMPANY HAS TAKEN STEPS TO ADDRESS THE PROBLEM A FEDERAL APPEALS COURT RULED THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK ALSO SAID THAT A PLAINTIFF ALLEGING THAT SEX WAS DEMANDED IN RETURN FOR JOB BENEFITS NEED NOT DEMONSTRATE ECONOMIC LOSS TO MAKE A SUCCESSFUL CLAIM THE SPECIFIC CASE INVOLVES A COLUMBIA UNIVERSITY STUDENT AND EMPLOYEE WHO FILED A SEXDISCRIMINATION CLAIM AFTER BEING LAID OFF IN AUGUST 1990 THE WOMAN CLAIMED THAT SHE HAD BEEN HARASSED BY HER SUPERVISOR A HIGHLEVEL OFFICER IN THE UNIVERSITY'S FUNDRAISING OFFICE WHO ALLEGEDLY DEMANDED SEX IN RETURN FOR RAISES AND OTHER BENEFITS THE SUPERVISOR WHO DIDN'T DENY HAVING A SEXUAL RELATIONSHIP WITH THE WOMAN BUT CLAIMED THAT IT WAS CONSENSUAL WAS FORCED TO RESIGN ABOUT THE SAME TIME THE WOMAN WAS LAID OFF COLUMBIA SUCCESSFULLY ARGUED AT THE TRIALCOURT LEVEL THAT IT SHOULDN'T BE HELD LIABLE BECAUSE IT HAD DEALT WITH THE PROBLEM BUT IN REVERSING THE LOWER COURT AND REINSTATING THE ACTION AGAINST THE SCHOOL THE APPEALS COURT SAID THAT AN EMPLOYER IS LIABLE FOR A DISCRIMINATORILY ABUSIVE WORK ENVIRONMENT CREATED BY A SUPERVISOR IF THE SUPERVISOR USES HIS ACTUAL OR APPARENT AUTHORITY TO FURTHER THE HARASSMENT BY CONTRAST IF THE ALLEGED HARASSER IS A COWORKER OR LOWERLEVEL SUPERVISOR WHO DOESN'T USE HIS AUTHORITY TO CARRY OUT THE HARASSMENT THEN THE EMPLOYER WILL ONLY BE LIABLE IF IT DID NOTHING OR PROVIDED NO AVENUE FOR COMPLAINT THE COURT SAID KARIBIAN V COLUMBIA UNIV ET AL NO937188 MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9401260078 940126 WHO'S NEWS JAMES TRUMAN GETS STAR STATUS AT CONDE NAST BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONDE NAST PUBLICATIONS INC HAS GIVEN ITS MOST IMPORTANT EDITORIAL JOB TO A 35YEAROLD BRITISH EDITOR JAMES TRUMAN MR TRUMAN THE EDITOR IN CHIEF OF DETAILS THE COMPANY'S HIP MAGAZINE FOR YOUNG MEN WILL SUCCEED CONDE NAST'S LEGENDARY 81YEAROLD EDITORIAL DIRECTOR ALEXANDER LIBERMAN MR TRUMAN'S JOB WILL BE TO TROUBLESHOOT AT THE CONDE NAST MAGAZINES THAT NEED SPECIAL ATTENTION THE COMPANY PUBLISHES 13 MAGAZINES INCLUDING VOGUE GLAMOUR GQ VANITY FAIR BRIDE'S AND GOURMET MR LIBERMAN HAS BEEN EXPECTED TO RETIRE FOR SEVERAL YEARS BUT SPECULATION ABOUT HIS SUCCESSOR HAD CENTERED ON THE EDITORS OF BETTERKNOWN MAGAZINES IN THE EMPIRE SUCH AS ANNA WINTOUR AT VOGUE OR TINA BROWN AT THE NEW YORKER MR TRUMAN NAMED EDITOR OF DETAILS IN 1990 AFTER A STINT AS A FEATURE EDITOR AT VOGUE STARTING IN 1988 IS CREDITED WITH QUADRUPLING THE CIRCULATION OF DETAILS TO MORE THAN 400000 BUT HE HAS NEVER HEADED ANOTHER MAGAZINE AND DOESN'T HAVE MR LIBERMAN'S DESIGN BACKGROUND JUST TWO WEEKS AGO CONDE NAST ANNOUNCED THAT ITS 68YEAROLD PRESIDENT BERNARD LESER WOULD BE SUCCEEDED BY STEVEN FLORIO THE 44YEAROLD PRESIDENT OF THE NEW YORKER IN ONE SWOOP SI SI NEWHOUSE JR HAS REPLACED BOTH THE TOP EDITORIAL AND THE TOP ADVERTISING MANAGERS OF CONDE NAST WITH A NEW GENERATION THIS IS A CHANGING OF THE GUARD SAYS MR NEWHOUSE CHAIRMAN OF BOTH CONDE NAST AND ITS PARENT ADVANCE PUBLICATIONS INC WHO NEVERTHELESS INSISTS HE DOESN'T WANT THE MAGAZINES PUSHED IN A NEW DIRECTION NOBODY EXPECTS MR TRUMAN TO CARRY ANYWHERE NEAR MR LIBERMAN'S CLOUT I WOULDN'T SAY THAT THE EDITORS WILL REPORT TO JAMES SAYS MR NEWHOUSE HE WILL BE THERE TO HELP EDITORS AND MAGAZINES THAT NEED HELP AND ASK FOR IT MR TRUMAN HIMSELF ACKNOWLEDGES HIS ROLE WILL BE LARGELY ADVISORY THIS IS LIKE GOING ON STAGE AFTER LAURENCE OLIVIER SAYS MR TRUMAN HE WAS A LEGENDARY PERFORMER AND I DON'T THINK THAT ON DAY ONE I'LL MAGICALLY BECOME ALEX LIBERMAN THE JOB WAS AN EXPRESSION OF HIS TALENT AND PERSONALITY I HOPE OVER TIME THAT THE JOB EVOLVES AS AN EXPRESSION OF WHAT I KNOW WHICH IS MORE EDITORIALLY DRIVEN THAN VISUALLY DRIVEN AND WHICH MAGAZINES WILL MR TRUMAN BE LIKELY TO ADVISE INSIDERS SAY THE MAGAZINES THAT MOST NEED HELP INCLUDE MADEMOISELLE VANITY FAIR AND BON APPETIT MADEMOISELLE JUST INSTALLED A NEW EDITOR LAST FALL AFTER THE PREVIOUS EDITOR GABE DOPPELT MADE CHANGES IN THE YOUNG WOMAN'S MAGAZINE THAT WERE DEEMED TOO CUTTINGEDGE FOR ADVERTISERS BON APPETIT'S AD PAGES DROPPED NEARLY 30 LAST YEAR AND VANITY FAIR WHILE ITS CIRCULATION HAS GAINED UNDER ITS NEW EDITOR GRAYDON CARTER ISN'T ATTRACTING AS MANY ADVERTISERS AS IT WAS WHEN MS BROWN RAN IT MR TRUMAN'S TALENTS MAY NOT BE NEEDEDOR WANTEDAT SUCH REPUTED CONDE NAST PERFORMERS AS GLAMOUR SELF GQ AND ALLURE SAYS ART COOPER EDITOR OF MEN'S MAGAZINE GQ I HAVEN'T WORKED WITH ANYBODY FOR EIGHT YEARS RUTH WHITNEY EDITOR OF GLAMOUR HAS A SIMILAR INDEPENDENCE THE MAGAZINES THAT WORK SUCCESSFULLY INDEPENDENTLY WILL CONTINUE TO DO SO THE CHANGES COME AT A TIME WHEN CONDE NAST WHOSE WELLKNOWN MAGAZINES ARE SOME OF THE INDUSTRY'S LEADERS IS NONETHELESS SUFFERING FROM THE WEAK ADVERTISING MARKET INDEED SOME CONDE NAST INSIDERS SAY THAT FEWER THAN HALF THE COMPANY'S MAGAZINES CURRENTLY ARE PROFITABLE WHILE MESSRS FLORIO AND TRUMAN AREN'T EXPECTED TO TAKE THE COMPANY IN A DRASTICALLY NEW DIRECTION THEY ARE EXPECTED TO HELP PUSH THE COMPANY FASTER TOWARD THE MULTIMEDIA FUTURE ADVANCE ALSO OWNS ONE OF THE NATION'S LARGEST CABLE TV SYSTEMS A CHAIN OF NEWSPAPERS AND THE BOOK PUBLISHER RANDOM HOUSE INC MR NEWHOUSE HAS ALREADY AGREED TO INVEST 500 MILLION IN QVC NETWORKS INC'S BID FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS INC THERE IS NO STRATEGY WE HAVE IN MIND ABOUT REDEFINING THE MAGAZINES SAYS MR NEWHOUSE BUT HE ADDS WE FACE A FUTURE FULL OF TECHNOLOGICAL CHALLENGES AND READERS WITH DIFFERENT BACKGROUNDS AND INTERESTS ALSO WE SEE DIFFERENT PROBLEMS IN MARKETING WE DIDN'T BEGIN TO THINK OF A FEW YEARS AGO WHILE MR LIBERMAN'S TENURE AT CONDE NAST HAS BEEN LONG 31 YEARS SO FAR AND ILLUSTRIOUS EVEN HE KNEW IT WAS TIME FOR A CHANGE SAYS MR NEWHOUSE AS OF APRIL 1 WHEN MR TRUMAN BECOMES EDITORIAL DIRECTOR MR LIBERMAN WILL ASSUME THE NEW POST OF DEPUTY CHAIRMANEDITORIAL PRESUMABLY SPENDING LESS TIME IN THE OFFICE BUT CONTINUING TO BE A TRUSTED ADVISER TO MR NEWHOUSE MR TRUMAN WASN'T MR NEWHOUSE'S FIRST CHOICE FOR THE JOB HE INITIALLY OFFERED IT TO MS BROWN IN 1992 GIVING HER THE CHOICE BETWEEN THE EDITORIAL DIRECTOR POST AND THE EDITORSHIP OF THE NEW YORKER MS BROWN THEN EDITOR OF CONDE NAST'S VANITY FAIR CHOSE THE NEW YORKER BUT MR LIBERMAN SAID HE PERSONALLY RECOMMENDED MR TRUMAN TO SUCCEED HIM YES HE'S YOUNG BUT SO WAS I WHEN I STARTED SAYS MR LIBERMAN HE JOINED THE ART DEPARTMENT OF VOGUE IN 1941 AND TWO YEARS LATER AT AGE 31 WAS NAMED VOGUE'S ART DIRECTOR MR LIBERMAN BECAME FAMOUS FOR CREATING THE MAGAZINE'S DRAMATIC STYLE IN THE '40S AND '50S AND HIS INFLUENCE WAS SO STRONG AT CONDE NAST THAT FOR YEARS INSIDERS SAY HE EVEN DICTATED WHO BECAME EDITOR OF EACH PUBLICATION AFTER THE NEWHOUSE FAMILY BOUGHT CONDE NAST IN 1959 MR LIBERMAN CONTINUED TO BE POWERFUL AS A TASTEMAKER REVIEWING EACH ISSUE OF ALMOST EVERY MAGAZINE FOR YEARS TO SUCCEED MR TRUMAN AT DETAILS CONDE NAST NAMED JOHN LELAND 34 CURRENTLY A SENIOR EDITOR AT NEWSWEEK 9401260077 940110 REVIEW & OUTLOOK EDITORIAL SEGREGATED AND UNEQUAL EACH YEAR FREEDOM HOUSE A NEW YORKBASED HUMAN RIGHTS ORGANIZATION RATES COUNTRIES ON POLITICAL AND CIVIL RIGHTS THEIR LATEST REPORT LISTS THE UNITED STATES AS ONE OF 29 NATIONS THAT ARE TRULY FREE BUT FREEDOM HOUSE NOTES THIS IS NO SIGN OF PERFECTION PROBLEMS CITED FOR THE US INCLUDE ELECTION LAWS FAVORING ENTRENCHED INCUMBENTS AND SIGNIFICANT CONTROVERSIES OVER THE SOMETIMES STRANGELY SHAPED LEGISLATIVE DISTRICTS DESIGNED TO GUARANTEE THE ELECTION OF RACIAL MINORITIES RACIAL GERRYMANDERING HAS BECOME ENOUGH OF A BLIGHT ON AMERICA'S POLITICAL SYSTEM THAT IT'S NOW BEING CITED AS A REAL PROBLEM BY A LEADING HUMANRIGHTS GROUP IT IS THEREFORE SIGNIFICANT THAT LATE LAST MONTH A THREEJUDGE FEDERAL PANEL ISSUED A UNANIMOUS DECISION THAT LOUISIANA'S BIZARRELY SHAPED CONGRESSIONAL DISTRICTS ARE AN UNCONSTITUTIONAL RACIAL GERRYMANDER THE COURT SAID THE STATE HAD GONE TOO FAR IN PACKING BLACK VOTERS INTO TWO DISTRICTS IN ORDER TO GUARANTEE MINORITIES WOULD WIN THE FOURTH DISTRICT IS DEPICTED HERE SEE ACCOMPANYING ILLUSTRATION WSJ JAN 10 1994 SNAKING AROUND THE PERIMETER OF THE STATE ED ADAMS A BLACK CITY COUNCILMAN WHO SUED TO OVERTURN THE DISTRICTS SAYS THE DECISION IS A WELCOME STEP AWAY FROM A SEGREGATED SOCIETY WHERE WE SEE EVERYTHING IN TERMS OF COLOR THE LOUISIANA DECISION WILL LIKELY BE APPEALED TO THE SUPREME COURT LAST YEAR THE COURT RULED FOR THE FIRST TIME THAT DISTRICTS DRAWN FOR THE SOLE PURPOSE OF SEGREGATING VOTERS BY RACE RESEMBLED A FORM OF POLITICAL APARTHEID AND COULD BE UNCONSTITUTIONAL IN SHAW VS RENO WHICH CHALLENGED A SERPENTINE 190MILELONG NORTH CAROLINA DISTRICT THE COURT NOTED SUCH RACIALLY PACKED DISTRICTS REINFORCE IMPERMISSIBLE RACIAL STEREOTYPES NAMELY THAT MEMBERS OF A MINORITY GROUP THINK ALIKE SHARE THE SAME POLITICAL INTERESTS AND WILL PREFER THE SAME CANDIDATES WE WOULD ADD THAT THEY ALSO GO AGAINST THE LONGHELD VIEW THAT INDIVIDUAL RIGHTS NOT GROUP RIGHTS ARE ENSHRINED IN THE CONSTITUTION INDEED THE VOTING RIGHTS ACT CLEARLY RENOUNCES A RIGHT TO HAVE MEMBERS OF A PROTECTED CLASS ELECTED IN NUMBERS EQUAL TO THEIR PROPORTION OF THE POPULATION BUT JUSTICE DEPARTMENT LAWYERS HAVE TWISTED THE ACT TO EFFECTIVELY REQUIRE A SPOILS SYSTEM THAT WOULD LEAD TO A CERTAIN RACIAL OUTCOME SOME BLACK ELECTED OFFICIALS CHEERED JUSTICE ON FOR SELFINTERESTED REASONS RACIAL GERRYMANDERS GIVE THEM SAFE PROTECTED SEATS THAT DON'T REQUIRE THEM TO BUILD POLITICAL ALLIANCES ACROSS RACIAL LINES OR TOLERATE OPPOSITION FROM OTHER POTENTIAL BLACK LEADERS JOHN PAYTON LEARNED THAT LAST MONTH THE CONGRESSIONAL BLACK CAUCUS EFFECTIVELY FORCED MR PAYTON PRESIDENT CLINTON'S CHOICE TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS TO WITHDRAW BECAUSE HE DECLINED TO STRONGLY SUPPORT THE CONTINUED DRAWING OF RACECONSCIOUS DISTRICTS STILL SOME BLACK LEADERS ARE HAVING SECOND THOUGHTS REPS CRAIG WASHINGTON AND JOHN LEWIS HAVE WORRIED THAT RACIAL GERRYMANDERING COULD DILUTE MINORITY VOTING POWER BECAUSE IT MEANS MORE MEMBERS OF CONGRESS WILL HAVE LILYWHITE DISTRICTS AND MIGHT FEEL FREE TO SHORTCHANGE MINORITY CONCERNS PRINCETON PROFESSOR CAROL SWAIN AN EXPERT ON BLACKS IN CONGRESS ARGUES THAT BLACKS CAN'T EASILY INCREASE THEIR CURRENT NUMBERS IN LEGISLATIVE BODIES IF THEY ARE CORRALLED INTO A FEW SUPERBLACK DISTRICTS MS SWAIN NOTES THERE ARE MANY RECENT EXAMPLES OF BLACKS WHO'VE MADE APPEALS ACROSS RACIAL LINES AND WON WHITE VOTES SENATOR CAROL MOSELEY BRAUN VIRGINIA GOVERNOR DOUG WILDER MAYOR NORM RICE OF SEATTLE MAYOR SHARON SAYLES BELTON OF MINNEAPOLIS AND REPS ALAN WHEAT AND GARY FRANKS ALL WON AMONG ELECTORATES THAT WERE AT LEAST 80 WHITE IN LOUISIANA THERE ARE ALSO SIGNS THAT RACIAL VOTING IS ABATING DAVID DUKE HAS VANISHED FROM THE POLITICAL LANDSCAPE AND REP WILLIAM JEFFERSON EASILY BECAME THE STATE'S FIRST BLACK CONGRESSMAN IN 1990 IN A NEW ORLEANS DISTRICT JUST OVER 50 BLACK BUT LOUISIANA'S LEGISLATURE CREATED A GEOGRAPHIC MONSTER THAT INCLUDES PARTS OF 28 OF THE STATE'S 64 PARISHES OR COUNTIES AND MEANDERS ALONG THE EDGES OF THE STATE FOR 600 MILES ALONG THE MISSISSIPPI RIVER IT'S ONLY 80 FEET WIDE IN SPOTS MR ADAMS THE BLACK CITY COUNCILMAN FROM GRAMBLING SAYS THE DISTRICT SMACKS OF SEGREGATION HE JOINED WITH THREE WHITE PLAINTIFFS TO ARGUE IT VIOLATED THE 14TH AMENDMENT'S BAN ON RACEBASED LEGISLATION THE FEDERAL COURT AGREED NOTING THAT EQUAL PROTECTION CANNOT MEAN ONE THING WHEN APPLIED TO ONE INDIVIDUAL AND SOMETHING ELSE WHEN APPLIED TO A PERSON OF ANOTHER COLOR THE DECISION EVEN QUOTED GEORGE ORWELL'S ANIMAL FARM IN REJECTING THE NOTION THAT ALTHOUGH ALL ARE EQUAL UNDER THE LAW SOME ARE MORE EQUAL THAN OTHERS THIS TERM THE SUPREME COURT WILL DECIDE SEVERAL VOTING RIGHTS ACT CASES IT WILL HAVE A CHANCE TO LAY DOWN SOME FIRM GUIDELINES ON WHAT THE ACT DOES AND DOES NOT REQUIRE IN RACIAL MATTERS NO ONE ARGUES THAT RACE CAN BE IGNORED IN PUBLIC POLICY BUT WE SHOULD REJECT TRIBAL THINKING THAT CONSTANTLY EMPHASIZES THE DIFFERENCES BETWEEN PEOPLE INSTEAD OF COMMON VALUES THESE POLICIES IT'S NOW CLEAR ARE EXACERBATING SOCIAL TENSIONS AND RESENTMENTS IN THE UNITED STATES SEE RELATED LETTER LETTERS TO THE EDITOR WHY WE MUST DRAW RACECONSCIOUS LINES WSJ JAN 26 1994 9401100063 YY94 MM01 9401260076 940103 LETTERS TO THE EDITOR THE IRISH ARE SCOTTISH AND VICE VERSA RICH YARNELL LETTER TO THE EDITOR ETHNIC IDENTITY A PART OF TROUBLES IN ULSTER DEC 14 IS CONFUSED ABOUT THE HISTORY OF SCOTLAND WHEN THE ROMANS VACATED BRITAIN IN THE 5TH CENTURY THE AREA NOW KNOWN AS SCOTLAND WAS DIVIDED AMONG FOUR GROUPS ONE OF THEM THE SCOTS A WARLIKE CELTIC TRIBE FROM NORTHERN IRELAND LIVED IN DALRIADA IN THE SOUTHWEST HIGHLANDS THE PORTION OF SCOTLAND CLOSEST TO IRELAND THROUGHOUT THE NEXT FEW CENTURIES THE SCOTS OF DALRIADA MAINTAINED THEIR TIES TO THE PARENT IRISH KINGDOM IN 843 THROUGH WAR AND MARRIAGE KENNETH MACALPIN KING OF DALRIADA UNITED THE LAND LYING NORTH OF THE RIVER FORTH NORTH OF THE MODERN SCOTSENGLISH BOUNDARY THE COUNTRY ACQUIRED THE NAME OF THE IMMIGRANT IRISH CELTS ONLY 12 OR 13 MILES SEPARATE NORTHERN IRELAND AND WESTERN SCOTLAND THROUGHOUT HISTORY PEOPLE HAVE CROSSED OVER IN BOTH DIRECTIONS TRAVEL HAS INCREASED IN SOME PERIODS SUCH AS THE FIRST DECADE OR TWO OF THE 17TH CENTURY FOLLOWING THE CROWNING IN 1603 OF JAMES VI OF SCOTLAND AS JAMES I OF ENGLAND AND DURING THE RULE IN ENGLAND OF OLIVER CROMWELL I GREW UP IN A WOOL TOWN IN THE SCOTTISH BORDERS AND NEVER HEARD OF ANY INCREASE IN THE 17TH AND 18TH CENTURIES ASSOCIATED WITH TROUBLE ALONG THE BOUNDARY BETWEEN SCOTLAND AND ENGLAND THAT RESULTED FROM UNION OF THE TWO COUNTRIES FORMALISED IN 1707 TRAFFIC BETWEEN IRELAND AND SCOTLAND AND THE REST OF BRITAIN INVOLVING BOTH CATHOLICS AND PROTESTANTS HAS CONTINUED UNTIL TODAY MOST OF THE CATHOLIC POPULATION OF SCOTLAND SOME 10 OR 15 IS DESCENDED FROM IRISH FOREBEARS MOST OF WHOM EMIGRATED IN THE LAST 100 OR 150 YEARS MY WIFE'S FATHER TRAVELED TO ENGLAND AROUND 1905 ENLISTED IN THE BRITISH ARMY WAS WOUNDED DURING WORLD WAR I AND MARRIED A SCOTTISH NURSE SUCH INTERMARRIAGE OCCURS IN NORTHERN IRELAND AS WELL SINCE THE ORIGINAL SCOTS CAME FROM IRELAND 1500 TO 2000 YEARS AGO AND THE GENE POOLS OF SCOTS AND IRISH HAVE BEEN CONTINUOUSLY INTERMINGLED EVER SINCE IT MAKES NO SENSE TO ARGUE THAT THE TWO GROUPS ARE DISTINGUISHED BY ETHNICITY IN SHORT THE WRITER OF YOUR DEC 1 EDITORIAL MAYHEM OR MAYHEW WAS CORRECT AND MR YARNELL WRONG ABOUT THE SOURCES OF CONFLICT IN NORTHERN IRELAND WHAT SEPARATES PROTESTANTS IN NORTHERN IRELAND AND THEIR CATHOLIC NEIGHBOURS IS CULTURE RELIGION HISTORY POLITICS PROTESTANTS IN NORTHERN IRELAND DO NOT WANT TO BECOME CITIZENS OF A COUNTRY IN WHICH THE PERCAPITA INCOME IS AMONG THE LOWEST IN WESTERN EUROPE AND WHERE THE INFLUENCE OF THE CATHOLIC CHURCH IS STRONG SO THAT DIVORCE IS DIFFICULT AND LEGAL ABORTION IMPOSSIBLE REMEMBER THE CASE OF THE TEENAGE GIRL MADE PREGNANT WHEN RAPED WHO HAD TO GO TO ENGLAND TO OBTAIN AN ABORTION PROTESTANTS IN NORTHERN IRELAND WANT TO REMAIN A PART OF THE UNITED KINGDOM OF ENGLAND SCOTLAND WALES AND NORTHERN IRELAND IF CONFRONTED BY A SIMILAR CHOICE MOST AMERICANS INCLUDING MANY CATHOLICS PROBABLY WOULD REACT IN MUCH THE SAME WAY SEE RELATED LETTER LETTERS TO THE EDITOR PICTS ANGLES VIKINGS SEASON SCOTTISH BROTH WSJ JAN 26 1994 9401030057 YY94 MM01 9401260075 940126 BUSINESS BRIEF CROMPTON & KNOWLES CORP COMPANY SAYS NET INCREASED 68 IN THE FOURTH QUARTER CROMPTON & KNOWLES CORP SAID FOURTHQUARTER NET INCOME ROSE 68 BOOSTED IN PART BY STRENGTH IN ITS SPECIALTY PROCESSEQUIPMENT AND CONTROLS BUSINESS AND A CHARGE IN THE YEAREARLIER PERIOD THE STAMFORD CONN MAKER AND MARKETER OF SPECIALTY CHEMICALS AND EQUIPMENT SAID FOURTHQUARTER PROFIT WAS 125 MILLION OR 24 CENTS A SHARE UP FROM 74 MILLION OR 15 CENTS A SHARE IN THE YEAREARLIER PERIOD LAST YEAR'S QUARTER INCLUDED A CHARGE OF 3 MILLION OR SIX CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT SALES ROSE ABOUT 4 TO 1429 MILLION FROM 1376 MILLION FOR THE YEAR CROMPTON & KNOWLES SAID NET ROSE 51 TO 517 MILLION OR 1 A SHARE FROM 345 MILLION OR 69 CENTS A SHARE A YEAR EARLIER 1992 RESULTS INCLUDED CHARGES TOTALING 88 MILLION OR 18 CENTS A SHARE FOR DEBT RETIREMENT AND ACCOUNTING CHANGES SALES FOR THE YEAR ROSE NEARLY 8 TO 5583 MILLION 9401260074 940126 BUSINESS BRIEF STANDARD REGISTER CO COMPANY EXPECTS TO REPORT RISE IN FOURTHQUARTER NET STANDARD REGISTER CO CITING STEADY SALES GROWTH AND CONTINUED OPERATIONAL COSTCUTTING SAID IT EXPECTS FOURTHQUARTER NET INCOME TO RISE TO ABOUT 46 CENTS A SHARE FROM 43 CENTS A YEAR EARLIER STANDARD'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN DARRAGH INDICATED THAT THE QUARTER'S RESULTS WOULD BEAT THE 1992 QUARTER'S NET OF 125 MILLION ON REVENUE OF 1934 MILLION FOR THE YEAR MR DARRAGH SAID HE DIDN'T TAKE EXCEPTION TO ANALYSTS' EARNINGS ESTIMATES OF ABOUT 146 A SHARE COMPARED WITH 90 CENTS IN 1992 WHICH INCLUDED A ONETIME ACCOUNTING CHARGE OF 47 CENTS NET INCOME FOR THE DAYTON OHIO DATA FORM CONCERN ROSE TO ABOUT 42 MILLION IN 1993 ON REVENUE OF ABOUT 730 MILLION FROM 26 MILLION ON REVENUE OF 7052 MILLION IN 1992 MR DARRAGH SAID MR DARRAGH SAID HE EXPECTED 1994 NET TO BE 5 TO 7 AHEAD OF 1993'S CONTRIBUTING TO THE GROWTH WILL BE CONTINUED RESTRUCTURING OF OPERATIONAL PROCESSING AND PROCEDURES A STREAMLINING DESIGNED TO AVERT SIGNIFICANT LAYOFFS 9401260073 940126 BUSINESS BRIEF FOXMEYER CORP MARKETING PROGRAM HELPS TO IMPROVE FIRM'S RESULTS FOXMEYER CORP SAID ITS PROMOTION OF GENERIC PHARMACEUTICALS AND PRIVATELABEL PRODUCTS IN INDEPENDENT PHARMACIES HELPED IMPROVE RESULTS FOR THE FISCAL THIRD QUARTER ENDED DEC 31 THE DALLAS WHOLESALE DRUG DISTRIBUTOR JARRED BY THE AUGUST 1992 BANKRUPTCYLAW FILING OF ITS LARGEST CUSTOMER PHARMOR INC REPORTED NET INCOME OF 84 MILLION OR 30 CENTS A SHARE ON SALES OF 13 BILLION FOR THE 1992 PERIOD FOXMEYER HAD A LOSS OF 177 MILLION OR 61 CENTS A SHARE ON SALES OF 12 BILLION THE YEARAGO THIRD QUARTER INCLUDED A CHARGE OF 428 MILLION TO COVER UNPAID PHARMOR BILLS FOR THE FIRST NINE MONTHS OF THE FISCAL YEAR FOXMEYER SAID NET INCOME TOTALED 168 MILLION OR 60 CENTS A SHARE COMPARED WITH A LOSS OF 53 MILLION OR 18 CENTS A SHARE A YEAR EARLIER INDEPENDENT PHARMACIES IN FOXMEYER'S HEALTH MART PROGRAM WHICH OFFERS ADVERTISING AND MARKETING ORDERED A BROADER PACKAGE OF SERVICES DURING THE QUARTER MAKING THE PROGRAM MORE PROFITABLE A SPOKESMAN SAID 9401260072 940126 WHO'S NEWS UNIPHASE CORP UNIPHASE CORP SAN JOSE CALIF KEVIN KALKHOVEN PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED ACTING CHAIRMAN OF THIS MAKER OF LASER EQUIPMENT MR KALKHOVEN 49 YEARS OLD SUCCEEDS DALE E CRANE 56 CATHERINE P GOODRICH 37 A CONSULTANT IN ATHERTON CALIF SUCCEEDS MR CRANE ON THE BOARD 9401260071 940126 BUSINESS BRIEF USAIR GROUP INC LOSS IN THE FOURTH QUARTER NARROWED TO 1165 MILLION USAIR GROUP INC ARLINGTON VA SAID ITS FOURTHQUARTER LOSS NARROWED TO 1165 MILLION FROM 254 MILLION ON A PERSHARE BASIS USAIR'S LOSS AMOUNTED TO 229 COMPARED WITH 566 A YEAR EARLIER THE AIRLINE'S REVENUE ROSE 10 TO 18 BILLION FROM 163 BILLION IN THE QUARTER AS USAIR'S TRAFFIC INCREASED 114 AT THE SAME TIME THE COMPANY'S DEFERRAL OF CERTAIN PLANE ORDERS DROVE AIRCRAFTRENTAL COSTS DOWN 43 TO 1053 MILLION THE LATEST FOURTHQUARTER LOSS INCLUDED A PRETAX NONRECURRING CHARGE OF 602 MILLION FOR THE WRITEDOWN OF AIRPORT FACILITIES AND COSTS ASSOCIATED WITH PAYING CERTAIN WAGES BACK TO RETIREES AS PART OF A WAGECONCESSION PROGRAM USAIR SAID FOR THE YEAR USAIR HAD A NET LOSS OF 3931 MILLION OR 848 A SHARE COMPARED WITH A YEARAGO LOSS OF 123 BILLION OR 2723 A SHARE ACCOUNTING CHANGES RELATED TO POSTRETIREMENT BENEFITS RESULTED IN CHARGES OF 437 MILLION IN 1993 AND 6281 MILLION IN 1992 THE 1993 RESULTS ALSO INCLUDED A CHARGE RELATED TO WORKFORCE REDUCTIONS REVENUE ROSE 59 TO 708 BILLION FROM 669 BILLION 9401260070 940125 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 9401260069 940126 BUSINESS BRIEF QUAKER STATE CORP FIRM IN TURNAROUND POSTS PROFIT FOR FOURTH QUARTER QUAKER STATE CORP CITING IMPROVEMENT IN ITS VEHICLELIGHT MANUFACTURING AND FAST LUBE UNITS SWUNG TO A PROFIT IN THE FOURTH QUARTER COMPARED WITH A LOSS IN THE YEARAGO PERIOD THE OIL CITY PABASED MARKETER OF MOTOR OIL AND LUBRICANTS POSTED NET INCOME OF 19 MILLION OR SEVEN CENTS A SHARE INCLUDING PRETAX CHARGES OF 31 MILLION FOR A PLANT CLOSING SEVERANCE COSTS RELATED TO A CORPORATE REORGANIZATION AND A WRITEDOWN AT ITS CREDIT LIFE AND INDEMNITY UNIT REVENUE WAS 1919 MILLION THAT COMPARES WITH A YEARAGO LOSS OF 358 MILLION OR 132 A SHARE WHICH INCLUDED A LOSS FROM DISCONTINUED COAL OPERATIONS OF 374 MILLION OR 138 A SHARE REVENUE WAS 174 MILLION 9401260068 940126 BUSINESS BRIEF PRESIDIO OIL CO OIL AND NATURAL GAS RESERVES GREW 82 AT THE END OF 1993 PRESIDIO OIL CO DENVER SAID ITS OIL AND NATURAL GAS RESERVES GREW 82 TO THE EQUIVALENT OF 635 MILLION BARRELS OF OIL AT THE END OF 1993 UP FROM 587 MILLION BARRELS A YEAR EARLIER THE OIL AND GAS CONCERN SAID IT ADDED THE EQUIVALENT OF 91 MILLION BARRELS OF OIL IN OIL AND NATURAL GAS RESERVES AT A FINDING COST OF 230 A BARREL DURING THE YEAR PRESIDIO SAID IT PRODUCED THE EQUIVALENT OF FOUR MILLION BARRELS AND DIVESTED ITSELF OF ANOTHER 300000 BARRELS ALL TOLD PRESIDIO SAID IT REPLACED 214 OF THE RESERVES IT PRODUCED AND DIVESTED ITSELF OF IN 1993 AT YEAREND 1993 PRESIDIO'S PROVED RESERVES WERE 13 MILLION BARRELS OF OIL AND 303 BILLION CUBIC FEET OF GAS COMPARED WITH 139 MILLION BARRELS OF OIL AND 2689 BILLION CUBIC FEET OF GAS AT THE END OF 1992 9401260067 940126 WHO'S NEWS FEDERAL HOME LOAN BANK OF NEW YORK FEDERAL HOME LOAN BANK OF NEW YORK NEW YORK THIS HOMEFINANCING BANK NAMED FIVE DIRECTORS BRINGING THE BOARD TO 17 SERVING TWOYEAR TERMS ARE ANGEL ALVAREZPEREZ 47 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST FEDERAL SAVINGS BANK IN PUERTO RICO HERBERT G CHORBAJIAN 55 CHAIRMAN PRESIDENT AND CEO OF BOTH ALBANK FINANCIAL CORP AND ITS ALBANY SAVINGS BANK UNIT ALBANY NY JAMES M LARGE JR 61 CHAIRMAN AND CEO OF ANCHOR SAVINGS BANK HEWLETT NY AND GEORGE STRAYTON 50 PRESIDENT AND CEO OF PROVIDENT SAVINGS BANK HAVERSTRAW NY REESE W FAYDE 44 FOUNDER OF REESE FAYDE & ASSOCIATES A NEW YORK MANAGEMENT CONSULTING FIRM WAS NAMED TO A FOURYEAR TERM 9401260066 940126 BUSINESS BRIEF DEAN WITTER DISCOVER & CO FOURTHPERIOD NET ROSE 60 AS TRADING REVENUE FELL DEAN WITTER DISCOVER & CO REPORTED A 60 JUMP IN FOURTHQUARTER NET INCOME ALTHOUGH TRADING REVENUE FELL 13 THE NEW YORK SECURITIES AND CREDITCARD COMPANY SAID NET INCOME ROSE TO 1385 MILLION OR 81 CENTS A SHARE FROM 868 MILLION OR 51 CENTS A SHARE A YEAR AGO REVENUE ROSE 14 TO 152 BILLION FROM 133 BILLION THE COMPANY SAID EARNINGS FROM CREDITSERVICE BUSINESSES ROSE 79 IN THE QUARTER TO 636 MILLION WHILE SECURITIES EARNINGS ROSE 46 TO 749 MILLION REVENUE FROM COMMISSIONS ROSE 28 TO 2371 MILLION WHILE PRINCIPALTRANSACTIONS REVENUE FELL TO 895 MILLION FROM 1033 MILLION BECAUSE OF REDUCED SALES OF FIXEDINCOME SECURITIES INVESTMENTBANKING REVENUE ROSE 41 TO 909 MILLION AND ASSET MANAGEMENT AND CUSTODIAL FEES ROSE 28 TO 2239 MILLION 9401260065 940126 INTERNATIONAL JAPAN'S RULING COALITION SEEKS NEW VOTE ON REFORMS TOKYO JAPAN'S OPPOSITION LIBERAL DEMOCRATIC PARTY AGREED TO MEET WEDNESDAY WITH MEMBERS OF THE RULING COALITION IN AN EFFORT TO END A STALEMATE ON POLITICAL REFORM PRIME MINISTER MORIHIRO HOSOKAWA'S REFORM BILLS ALREADY WERE REJECTED ONCE BY PARLIAMENT LAST WEEK AND FEW EXPECT WEDNESDAY'S MEETING TO BE CONCLUSIVE MR HOSOKAWA IS STRUGGLING TO TURN HIS PROPOSED REFORMS INTO LAW BEFORE THE CURRENT SESSION ENDS ON SATURDAY IF THE BILLS AREN'T PASSED BY THEN MR HOSOKAWA MAY RESIGN OR DISSOLVE PARLIAMENT AND CALL ELECTIONS FOREIGN MINISTER TSUTOMU HATA CONCEDED TUESDAY THAT DISSOLVING PARLIAMENT IS A POSSIBILITY WEDNESDAY'S MEETING IS AIMED AT REACHING AN AGREEMENT THAT WOULD ALLOW BOTH HOUSES OF JAPAN'S PARLIAMENT TO VOTE AGAIN ON REFORM IF BOTH HOUSES PASS THE LEGISLATION BY A SIMPLE MAJORITY THE BILLS BECOME LAW WITHOUT SUCH A COMPROMISE MR HOSOKAWA'S REMAINING OPTION IS A LASTDITCH VOTE IN THE LOWER HOUSE OF PARLIAMENT WHERE THE PRIME MINISTER MUST RECEIVE A TWOTHIRDS MAJORITY TO PASS HIS REFORMS SUCH A MOVE WOULD REQUIRE THE SUPPORT OF ABOUT 70 MEMBERS OF THE OPPOSITION LIBERAL DEMOCRATS WHICH ISN'T LIKELY 9401260064 940126 BUSINESS BRIEF BANC ONE CORP DIRECTORS APPROVE BUYBACK TIED TO A POSSIBLE ACQUISITION BANC ONE CORP COLUMBUS OHIO SAID ITS BOARD APPROVED THE PURCHASE OF AS MANY AS 10 MILLION SHARES OF COMMON STOCK IN ANTICIPATION OF USING IT TO ACQUIRE PREMIER BANCORP INC BATON ROUGE LA A SPOKESMAN FOR BANC ONE SAID THE COMPANY HASN'T DECIDED WHETHER TO EXERCISE ITS OPTION TO PURCHASE PREMIER HE ADDED HOWEVER THAT THE SHARES THE COMPANY IS PURCHASING ARE SPECIFIED FOR THIS TRANSACTION IF IT OCCURS IN 1992 BANC ONE RECEIVED FEDERAL RESERVE BOARD APPROVAL TO ACQUIRE A LARGE STAKE IN THENTROUBLED PREMIER BANC ONE AT THE TIME PURCHASED 65 MILLION OF NEWLY ISSUED PREMIER CAPITAL NOTES AND RECEIVED THE OPTION TO ACQUIRE PREMIER BETWEEN JUNE 30 1995 AND MARCH 31 1997 PREMIER HAS ASSETS OF 42 BILLION BANC ONE HAS 799 BILLION IN ASSETS SEPARATELY BANC ONE APPROVED A 10 STOCK DIVIDEND PAYABLE MARCH 4 TO STOCK OF RECORD FEB 16 THE REGULAR QUARTERLY DIVIDEND OF 31 CENTS A SHARE WILL BE PAID MARCH 31 TO STOCK OF RECORD MARCH 15 BANC ONE SAID THE CASH DIVIDEND WILL BE PAID ON THE NEW SHARES RESULTING FROM THE STOCK DISTRIBUTION 9401260063 940126 WHO'S NEWS PERRIGO CO PERRIGO CO ALLEGAN MICH MARK OLESNAVAGE 40 YEARS OLD WAS NAMED PRESIDENT OTC PHARMACEUTICAL OPERATIONS EFFECTIVE FEB 1 OF THIS MAKER OF STOREBRAND PHARMACEUTICAL AND PERSONALCARE ITEMS 9401260062 940126 BUSINESS BRIEF SEQUOIA SYSTEMS INC STRONG COMEBACK IS MADE IN FISCAL SECOND QUARTER SEQUOIA SYSTEMS INC IN A STRONG COMEBACK SAYS IT WILL REPORT FISCAL SECONDQUARTER NET INCOME OF 24 MILLION OR 24 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 196 MILLION OR 232 A SHARE COMPANY OFFICIALS SAID REVENUE IN THE SECOND QUARTER ENDED JAN 2 WILL TOTAL 111 MILLION UP FROM 110 MILLION A YEAR AGO SEQUOIA OFFICIALS SAID IN AN INTERVIEW THE COMPANY HAS ABSOLUTELY BEEN TURNED AROUND FROM BEING ON DEATH'S DOOR TO BEING A VERY STABLE PROFITABLE HIGHLY LIQUID CASHPOSTIVE COMPANY AND DEBTFREE SAID NEIL MCMULLAN PRESIDENT AND CHIEF EXECUTIVE OFFICER A LITTLE OVER A YEAR AGO THE MARLBOROUGH MASSBASED MAKER OF FAULTTOLERANT COMPUTERS WAS NEARBANKRUPT AND LOOKING FOR A BUYER 9401260061 940126 BLUE BLOOD IBM'S FINANCE CHIEF AX IN HAND SCOURS EMPIRE FOR COSTS TO CUT YORK PROBES EVERY EXPENSE QUESTIONS OLD HABITS AND IRKS SOME VETERANS WHY ALL THESE ENVELOPES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY IN A SMALL CONFERENCE ROOM AT IBM HEADQUARTERS HERE JEROME B YORK THE NEW FINANCE CHIEF CONFRONTS TWO NERVOUS EXECUTIVES FROM THE DISKDRIVE DIVISION AND PUMMELS THEM WITH QUESTIONS WHY MR YORK DEMANDS DOES THE DIVISION SPLIT ITS DEVELOPMENT TEAM BETWEEN ROCHESTER NY AND SAN JOSE CALIF WHY DOES IT SHIP PARTS TO A PLANT IN MEXICO ONLY TO RESHIP PARTIALLY ASSEMBLED DRIVES BACK TO SAN JOSE WHEN TRANSPORT COSTS ARE EATING US ALIVE AND WHERE IS THE DATA THE EXECUTIVES HAD PROMISED TO PROVIDE ON COMPETITORS ABOVE ALL MR YORK ZEROES IN ON BLOATED INVENTORY WHY DOES THE DIVISION HAVE ABOUT A BILLION DOLLARS WORTH OF UNSOLD PRODUCT SITTING AROUND TYING UP CASH AND RIPE FOR THEFT OR DAMAGE IBM HAS 85 BILLION IN INVENTORY ON ITS BALANCE SHEET HE TELLS THE PAIR IN A POLITE MEMPHIS DRAWL WHERE I COME FROM THAT'S UNACCEPTABLE WE ALREADY GOT PEOPLE WALKING AND CHEWING BUBBLE GUM AT THE SAME TIME AROUND HERE BUT IN THE NEXT YEAR WE'RE GOING TO START WORKING ON INVENTORY ONE EXECUTIVE REPLIES THAT THE HIGH INVENTORY LEVEL ISN'T HIS DIVISION'S FAULT HE BLAMES THE PERSONALCOMPUTER DIVISION WHICH WAITS TOO LONG TO TAKE DELIVERY BUT MR YORK ISN'T MOLLIFIED BY THE TIME HE FINISHES WITH THE PAIR PATINAS OF SWEAT GLISTEN ON THEIR FOREHEADS LESS THAN A YEAR AGO JEROME YORK WORKED IN THE WORLD OF DISK BRAKES RATHER THAN DISK DRIVES HELPING TURN AROUND CHRYSLER CORP BY SHAVING 4 BILLION IN ANNUAL EXPENSES THEN HE TOOK ON THE BIGGER CHALLENGE OF REPAIRING INTERNATIONAL BUSINESS MACHINES CORP SINCE COMING TO IBM LAST MAY HE HAS SET REDUCTIONS OF 5 BILLION A YEAR WITH ALREADYANNOUNCED MOVES TO CUT 45000 JOBS SHUT MYRIAD PLANTS AND SELL OFF REAL ESTATE OVER THE NEXT THREE YEARS NOW MR YORK MUST WHITTLE ALMOST 2 BILLION MORE BY FOCUSING ON THE SMALL STUFF FERRETING OUT INEFFICIENCIES AND FUNDAMENTALLY CHALLENGING BUSINESS PRACTICES LOCKED IN DECADES OF DIEHARD HABITS THERE'S A LOT OF WASTE IN THIS COMPANY IBM'S NEW CHIEF FINANCIAL OFFICER SAYS WE'RE GOING TO FIND IT AND ROOT IT OUT AS HE PURSUES THIS CRUSADE HOWEVER HIS CHANCES OF SUCCESS ARE MIXED THE FARFLUNG IBM EMPIRE IS MORE COMPLEX MORE DECENTRALIZED AND POSSIBLY IN MORE TROUBLE THAN CHRYSLER WAS ALTHOUGH MR YORK CONTENDS THE AUTO MAKER WAS IN WORSE SHAPE MR YORK MUST KNIT TOGETHER THE SPENDING PRACTICES OF DISPARATE DIVISIONS THAT PRIZE THEIR AUTONOMY HE CAN'T HACK AWAY TOO BOLDLY AT SUCH CHERISHED IBM PERKS AS EMPLOYEE COUNTRY CLUBS AND FETES FOR TOP SALESPEOPLE EVEN THOUGH SUCH FRILLS AT A COMPANY WITH IBM'S PROBLEMS HAVE RAISED EYEBROWS HE ALSO MUST PUSH TO CHANGE A COMPANY ONCE RENOWNED FOR A TORPID MANAGEMENT STYLE AND TIMESAPPING CONSENSUS DECISIONMAKING THE FORMER AUTO EXECUTIVE MOREOVER MUST TAKE ON ALL OF THIS WHILE BEING REGARDED AS A TECHNONEOPHYTE AND A STRANGER BY DOZENS OF LIFELONG IBMERS WHOM HE MUST ENLIST IN HIS EFFORT MR YORK'S PREOCCUPATION WITH COSTS AND HIS LACK OF HIGHTECH BASICS CLEARLY RANKLE SOME CURRENT AND RECENTLY DEPARTED IBMERS OTHERS CONTEND HOWEVER THAT ONLY AN OUTSIDER CAN USHER IN THE NEW ERA OF CUTBACKS AND COLDHEARTED REALITY THAT BIG BLUE REQUIRES THERE ARE SOME SIGNS THAT MR YORK'S FOCUS ON CUTTING BACK IS CATCHING ON YESTERDAY IBM REPORTED FOURTHQUARTER NET INCOME OF 382 MILLION OR 62 CENTS A SHARE ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR EVEN IF MR YORK SUCCEEDS AT IMPOSING FURTHER CUTS HOWEVER THEY ALONE WON'T BRING IBM BACK THE NEW MANAGEMENT TEAM LED BY CHAIRMAN LOUIS V GERSTNER MUST DEVELOP SOURCES OF REVENUE TO OFFSET THE DECLINE OF THE MAINFRAME BUSINESS THIS POINT WAS MADE PAINFULLY CLEAR YESTERDAY WHEN IBM SURPRISED INVESTORS BY REPORTING A SMALL REVENUE DECLINE FOR THE FOURTH QUARTER TYPICALLY ITS STRONGEST IBM STOCK CLOSED AT 5825 DOWN 375 CENTS A SHARE AS THE NEW YORK STOCK EXCHANGE'S MOST ACTIVE ISSUE ON THE SURFACE JEROME YORK LOOKS LIKE A CLASSIC IBMER HE IS A SLENDER SILVERHAIRED 55YEAROLD WHO WEARS WHITE STIFFLY STARCHED SHIRTS BENEATH APPROPRIATELY DARK SUITS BUT AT BIG BLUE HE IS AN EXECUTIVE OF AN ENTIRELY DIFFERENT COLOR THE SON OF AN ARMY OFFICER HE ATTENDED WEST POINT AND DREAMED OF SERVING IN THE AIR FORCE BUT A GYMNASTICS INJURY WHEN HE WAS A FRESHMAN LANDED HIM IN TRACTION FOR SIX MONTHS AND KEPT HIM FROM SERVING SO HE WAS GRADUATED EARNED AN ENGINEERING DEGREE FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND AN MBA FROM THE UNIVERSITY OF MICHIGAN AND WENT TO WORK FOR FORD MOTOR CO AND THEN HERTZ CORP HE JOINED CHRYSLER IN 1979 AND SOON DREW ATTENTION AS A DEMANDING WORKAHOLIC A MAN WHO MORE THAN ONCE FAINTED AFTER AN ALLNIGHT SESSION FUELED BY COFFEE AND NICOTINE MR YORK HAS BEEN MARRIED FOUR TIMES HIS PRESENT WIFE WAS ALSO WIFE NO 2 IMPATIENT AND EASILY BORED HE SAYS THE ONLY MOVIES HE CAN BEAR TO SIT THROUGH FEATURE LOTS OF BULLETS AND CLINT EASTWOOD DIRTY HARRY IT SEEMS OUTDRAWS AGE OF INNOCENCE IN A HOBBY HARRY HIMSELF WOULD ADMIRE MR YORK HAS OWNED SEVEN MOTORCYCLES GIVING UP THE LAST ONE ONLY RECENTLY AS HIS PERIPHERAL VISION STARTED TO FADE AT IBM MR YORK HAS WON EARLY REGARD AS A BLUNT NONONSENSE MANAGER WHO SPICES HIS LANGUAGE WITH SO MANY FOURLETTER WORDS THAT SOME SUBORDINATES HAVE ADOPTED HIS FOULMOUTHED LEXICON IF YOU DON'T DELIVER FOR JERRY OBSERVES IBM CHIEF STRATEGIST JAMES CANNAVINO SOMEBODY HAD BETTER BE PREPARING FOR YOUR PASSAGE INTO THE NEXT LIFE ONE JANUARY MORNING AFTER A HEAVY SNOWSTORM CREATED BAD ROAD CONDITIONS MR YORK NONETHELESS CHIDED HIS STAFF FOR TRICKLING INTO THE OFFICE LATE HE HIMSELF WAS AT HIS DESK BY 8 AM AFTER ATTACHING A SNOWPLOW TO HIS DODGE PICKUP AND LITERALLY PLOWING HIS WAY FROM HIS HOME IN CONNECTICUT TO HEADQUARTERS IN ARMONK MR YORK CONFRONTS IBM'S PROBLEMS JUST AS DIRECTLY TO FIND OUT HOW BIG BLUE WORKS AND HOW MUCH NEEDS TO BE DONE HE CRISSCROSSES THE COMPANY'S GLOBAL OPERATIONS AND VISITS FACTORY FLOORS NO DETAIL SEEMS TOO SMALL TO MERIT HIS SCRUTINY ON A RECENT DAY HE HEADED FOR AUSTIN TEXAS ABOARD A COMPANY LEARJET ONE OF ONLY SEVEN JETS LEFT OF THE 13PLANE FLEET BEFORE HE ARRIVED HE WANTS TO SELL OFF A FEW MORE HE WAS ABOUT TO TOUR THE PLANTS THAT MAKE A NEW LINE OF POWERPC COMPUTERS AND WORKSTATIONS TWO AREAS CRITICAL TO IBM'S FUTURE BUT LESS THAN AN HOUR INTO HIS FLIGHT HE WAS FUMING OVER ENVELOPES HE HAD OPENED AN OVERSIZED BROWN ENVELOPE MARKED IBM CONFIDENTIAL AND PULLED OUT A MEMO THAT HARDLY SEEMED WORTH ANY SECRECY NOW THERE'S WASTE FOR YOU HE SAID FLICKING THE ENVELOPE OVER TO HIS EXECUTIVE ASSISTANT MARIE WIECK I WANT TO KNOW HOW MANY OF THESE WE USE IF THEY BUY ANY MORE I'M NOT GOING TO PAY FOR THEM EASIER SAID THAN DONE EIGHT WEEKS LATER MS WIECK WAS STILL MIRED IN BIDS AND DISCUSSIONS OVER ENVELOPES IT TURNS OUT THAT IBM USES FIVE SECURITY LEVELS FOR ENVELOPES UNCLASSIFIED INTERNAL CONFIDENTIAL CONFIDENTIALRESTRICTED AND REGISTERED SHE MUST DECIDE WHETHER THAT ARRAY CAN BE CONSOLIDATED INTO ONE REUSABLE ENVELOPE WHETHER IT WOULD COST LESS TO USE ENVELOPES THAT CAN BE RESEALED SEVERAL TIMES BEFORE THEY ARE THROWN AWAY OR WHETHER IBM NEEDS ANY CONFIDENTIAL ENVELOPES THERE ALSO IS A QUESTION OF SIZE MS WIECK STILL HASN'T OBTAINED THE LARGEVSSMALL BREAKDOWN SHE NEEDS THE POTENTIAL SAVINGS IBM BUYS THREE MILLION OF THE MOST COMMONLY USED CONFIDENTIAL ENVELOPES LIKE THE ONE THAT MIFFED MR YORK AT A COST OF 75000 A YEAR THE REST COMBINED ADD UP TO EVEN LESS ONWARD TO AUSTIN WHERE MR YORK DONNED A STERILIZED BUNNY SUIT AND ENTERED THE CLEAN ROOM WHERE WORKERS TURN OUT GLASSFIBER CIRCUIT BOARDS THERE SOUNDING A BIT LIKE KIDDIE HOST MR ROGERS ON A FACTORY TOUR MR YORK SHOWED HIMSELF TO BE AN EAGER STUDENT HE WATCHED THE PROCESS KEENLY ASKING QUESTIONS ABOUT WHAT THE ROLLERS DO THEY PRESS A RESIN INTO THE BOARDS AND ABOUT WHY A METAL PLATE IS INSERTED BETWEEN THE COPPERLAYERED BOARDS IT KEEPS THEM CLEAN AND DRIVES DOWN THE HEAT IN THE BAKING PROCESS HE WAS SOON MAKING SUGGESTIONS AND ASKING MANAGERS TO JUSTIFY THE WAY THEY DO THINGS WHY SO MUCH PROCESSING BEFORE THE BOARD GETS TO THE CUTTER IT HAS ALWAYS BEEN DONE THIS WAY HE IS TOLD HOW MUCH SCRAP IS THROWN AWAY AT THE END OF THE PROCESS 10 CAN IT BE REDUCED YES AT THE END OF IT ALL MR YORK FELT CONFIDENT ENOUGH TO CHALLENGE PLANT MANAGER BILL AMELIO'S ASSERTION THAT IN FIVE YEARS AT THE OPERATION PUTTING OUT 10000 CIRCUIT BOARDS A DAY NOT ONE BOARD HAS BEEN RETURNED FOR DEFECTS IT'S THE BEST PLANT IN THE WORLD MR AMELIO SAID PROUDLY BEFORE THE SMALL GROUP TOURING WITH THE NEWCOMER FROM ARMONK MR YORK DIDN'T BUY IT FRANKLY I JUST DON'T BELIEVE YOU HE SHOT BACK A NUMBERS MAN HE VIEWED THE CLAIM AS STATISTICALLY IMPOSSIBLE AND TOLD HIS HOSTS YOU MAY NOT BE GETTING ALL THE DATA BACK THAT RANKLED THE SITE'S TOP MANAGER JERRY CARLSON WHO WEEKS LATER REFUSED TO ACCEPT MR YORK'S PREMISE MR YORK JUST DOESN'T UNDERSTAND WHAT WE'VE DONE HERE MR CARLSON SAID IN AN INTERVIEW LATER MR YORK PRAISED THE WORK OF THE PLANT MANAGER MR AMELIO IN A SMALL GATHERING BUT HE ISSUED A WARNING ABOUT THE PLANT'S FUTURE MAKING CIRCUIT CARDS IS A BUSINESS IBM DOESN'T HAVE TO BE IN STRATEGICALLY THE CFO TOLD THE GROUP AT SOME POINT YOU'LL WALL OUT IN THIS FACILITY NEED TO EXPAND AND WHEN YOU ASK FOR 30 MILLION TO REBUILD YOU'LL HAVE TO SHOW US YOU'RE HIGHLY COMPETITIVE TO MR YORK IBM HAS NO OTHER CHOICE BUT TO REEXAMINE THE BASICS OF ALMOST EVERYTHING IT DOES HE LIKENS HIS JOB TO MANAGING A FAMILY CHECKBOOK IBM'S MARGINS HAVE FALLEN BY THE EQUIVALENT OF 13 BILLION IN ANNUAL OPERATING PROFIT YET EVEN IN A MASSIVE RESTRUCTURING THE COMPANY HAD CUT ONLY 3 BILLION IN ANNUAL EXPENSES BY THE TIME HE CAME IN IBM IS LIVING WAY OVER ITS HEAD HE SAYS THE 10 BILLION GAP BETWEEN DECLINING PROFITS AND STUBBORN COSTS HELPED DRIVE IBM INTO THE RED FOR TWO CONSECUTIVE YEARS AND KNOCK DOWN ITS STOCK PRICE BY TWOTHIRDS IN 1992 IBM'S COSTS AMOUNTED TO 42 OF REVENUE COMPARED WITH 31 ON AVERAGE FOR RIVALS TO RIGHT THAT IMBALANCE MR YORK HAS SNIPPED AWAY AT SOME OBVIOUSLY EXPENDABLE ITEMS GONE IS THE ANNUAL CHRISTMAS PARTY FOR THE PRESS AT THE NEW YORK PLAZA SAVINGS ABOUT 10000 IBM NO LONGER RENTS AN ENTIRE FLOOR OF THE PARK TOWER ON MADISON AVENUE IN MANHATTAN ACROSS THE STREET FROM ITS OWN OFFICE TOWER FOR PRODUCT INTRODUCTIONS SAVINGS 1 MILLION AND THOUGH IT ISN'T EASY THE OUTSIDER FROM CHRYSLER HAS MANAGED TO TRIM A BIT HERE AND THERE IN THE RECOGNITION EVENTS FOR TOP EMPLOYEES NOW INSTEAD OF STAGING 11 SEPARATE GATHERINGS FOR SALESPEOPLE WHO EXCEED THEIR QUOTAS AND JOIN THE GOLDEN CIRCLE IBM WILL HOLD FOUR INSTEAD OF FANCY FIVESTAR RESORTS SUCH AS THE BREAKERS IN PALM BEACH FLA IBM SALESMEN THIS MARCH WILL STAY AT ORLANDO'S BUENA VISTA PALACE IN BROADER STROKES MR YORK SUMMARILY TRIMMED 1 BILLION FROM IBM'S FAT 7 BILLION RESEARCH AND DEVELOPMENT BUDGET HE CONSOLIDATED THE PURCHASE OF PAPER CLIPS PENS AND PAPER AND ALMOST EVERYTHING BUT MANUFACTURING MATERIALS SAVING ABOUT 5 MILLION A YEAR WITH BULK ORDERS AND FEWER PEOPLE INSTEAD OF SENDING OUT INSTRUCTION MANUALS THE SIZE OF THE NEW YORK CITY PHONE BOOK IBM NOW SENDS INSTRUCTIONS ELECTRONICALLY SAVING 50 MILLION IN PRINTING COSTS MR YORK HAS EVEN TAKEN A WHACK AT SOME SACRED ITEMS IBM'S UNLIMITED BENEFICENCE TO EMPLOYEES PRESENT AND PAST IS GONE RAISES WERE SMALLER LAST YEAR EMPLOYEES ARE CONTRIBUTING MORE TO THEIR HEALTH PLANS AFTER LAST JULY 1 THE EARLYRETIREMENT PACKAGE WAS HALVED TO A MAXIMUM OF 26 WEEKS OF PAY MEDICAL BENEFITS FOR LAIDOFF WORKERS WERE CUT TO AT MOST SIX MONTHS OF COVERAGE AFTER LEAVING IBM DOWN FROM ONE YEAR HOWEVER ADDITIONAL CUTS MAY PROVE HARDER TO FIND MR YORK MUST COPE WITH IBM'S LONGHELD NOTION THAT IT ALONE MUST PROVIDE EVERYTHING FROM SOUP TO NUTS FOR ITS CUSTOMERS PUTTING THE COMPANY IN A LOT OF LOWMARGIN PRODUCTS HE SPENDS A LOT OF HIS TIME FORCING FEUDING DIVISIONS TO COOPERATE IN HIS DRIVE TO ELIMINATE REDUNDANT EXPENSES AND INEFFICIENT PRACTICES ONE EXAMPLE AT A BUDGET MEETING HE FOUND THAT THE DIVISION THAT MAKES AS/400 WORKSTATIONS PLANNED TO CHURN OUT 10000 MORE MACHINES THAN THE MARKETING DIVISION WAS PROMISING TO SELL HE ASKED NICELY THAT THE TWO DIVISIONS AGREE ON HOW MANY THEY WOULD SELL FOR THE SAKE OF CONSISTENCY AND TO CUT DOWN ON THE INVENTORY PROBLEM THE RIVAL EXECUTIVES SAID IT COULDN'T BE DONE MR YORK GOT TOUGHER SAYING IT COULD ULTIMATELY IT WAS MR YORK ALSO QUESTIONS WHY IBM SHOULD MAKE SO MANY OF THE PARTS FOR ITS PRODUCTS IT CONTRACTS OUT ONLY ABOUT 50 OF ITS MANUFACTURING COSTS COMPARED WITH THE AUTO INDUSTRY'S AVERAGE OF 70 YOU CAN'T MANUFACTURE EVERY NUT AND BOLT THAT GOES INTO YOUR HARDWARE BECAUSE SOMEBODY CAN DO THAT BETTER THAN YOU CAN HE SAYS THE IBMERS HE VISITED AT THE AUSTIN PLANT HOWEVER DON'T NECESSARILY SEE IT THAT WAY ON HIS RECENT TRIP MR YORK REACHED THE ASSEMBLY LINE FOR RS/6000 COMPUTERS AND WAS STRUCK BY HOW SMALL IT IS COMPARED WITH DETROIT'S SIXMILELONG PRODUCTION LINES THE MANAGERS IN AUSTIN ARE OBSESSIVE TESTERS RUNNING MACHINES THROUGH SEVEN DIFFERENT CHECKS TO LOOK FOR BUGS THEN WHEN THE WORKSTATIONS ARE ASSEMBLED ONE OUT OF 10 IS SENT OUT FOR A RANDOM SPOTCHECK A REAL LIFESAVER ONE MANAGER EXPLAINED MR YORK HOWEVER COULDN'T COMPREHEND THE REASON FOR SO MUCH TESTING IT'S INCREDIBLE TO ME THAT WITH ALL THE TESTING YOU DO YOU THEN HAVE TO CHECK ONE OUT OF 10 HE TOLD THE PLANT TEAM AND THAT TEST IS A LIFESAVER' BECAUSE OTHERWISE WE WOULDN'T KNOW HE ADDED POINTEDLY THE ANSWER ELECTRONIC PRODUCTS ARE DELICATE MORE DELICATE THAN MOST MECHANICAL PARTS THAT GO INTO CARS AFTER ALL THE PIECES ARE ASSEMBLED LOADED WITH SOFTWARE AND PLUGGED INTO THE WALL SOMETIMES ALL THE PARTS DON'T WORK TOGETHER BUT MR YORK WASN'T SATISFIED HE TOLD THE TEAM I HAVE A PROBLEM IN THAT EVERYWHERE I GO IN THE COMPANY I'M TOLD DEFECTS ARE FALLING BUT WHEN I LOOK AT THE BOOKS I DON'T SEE WARRANTY COSTS FALLING NO SOONER DID HE FINISH QUESTIONING WARRANTIES THAN HE STUMBLED ON ANOTHER QUAGMIRE SPOTTING ROWS OF BOXEDUP RS/6000S WAITING TO BE SHIPPED OUT HE ASKED HOW MUCH THE PLANT IS CHARGED BY IBM'S MARKETING DIVISION FOR HANDLING THE SHIPMENTS TO CUSTOMERS THE ANSWER A STIFF 700 A BOX FOR A MACHINE THAT IS JUST A LITTLE LARGER THAN A DESKTOP PC YOU GUYS ARE GETTING HOSED MR YORK COUNTERED WITH A CHUCKLE HE SUGGESTED THAT THE PLANT CHECK SHIPPING RATES AT COMMERCIAL CARRIERS SUCH AS UNITED PARCEL SERVICE TO GATHER EVIDENCE FOR FORCING THE MARKETING DIVISION TO REDUCE ITS CHARGE MR CARLSON THE SITE MANAGER SAID A TASK FORCE WAS TACKLING THE PROBLEM FOR YEARS IBM'S MARKETING DIVISION HAS CHARGED FREIGHT DUTY AND SHIPPING COSTS BY REGION INSTEAD OF BY PRODUCT SO DIVISIONS THAT SHIP FEWER HIGHERPRICED MACHINES SUCH AS THE RS/6000 PAY MORE PER MACHINE THAN SAY IBM PERSONAL COMPUTER CO WHICH SHIPS TENS OF THOUSANDS MORE UNITS AND PAYS 50 EACH LATER MR CARLSON SAID THE REVIEW PROMPTED IBM MARKETING TO HALVE ITS 700PERBOX CHARGE TO 350 FURTHER DICKERING HAS CUT IT TO 224 THAT STILL IS FAR HIGHER THAN COMMERCIAL SHIPPING HOWEVER WHICH RUNS 90 FOR TWODAY DELIVERY HE SAYS HE HOPES TO BARGAIN FOR AN EVENLOWER CHARGE THE NIGHT OF MR YORK'S VISIT THE AUSTIN EXECUTIVES WENT HOME IMBUED WITH HIS TOUGHTALKING AND PROFANE STYLE THE WIFE OF ONE ENDED UP ASKING HER HUSBAND WHY ALL OF A SUDDEN HE HAD STARTED MAKING LIBERAL USE OF THE FWORD HE EXPLAINED IT'S JERRY'S FAVORITE WORD TRUE TO STYLE MR YORK WAS UP AT DAWN THE NEXT MORNING READY TO FLY TO BOULDER COLO TO SEE IBM'S SOFTWARE PRODUCTION FACILITIES PLANT OFFICIALS ZOOMED HIM TO A CONFERENCE ROOM WHERE A TABLE WAS LAID OUT WITH A SILVER SERVICE FOR COFFEE FRESH FRUIT AND PASTRIES THIS WAS PRETTY LAVISH BY IBM'S FRUGAL NEW STANDARDS AT A RECENT MEETING AT A MAINFRAME CENTER IN NEW YORK STATE MANAGERS HAD TO PAY FOR THEIR OWN COFFEE AND DOUGHNUTS MR YORK SKIPPED THE FRUIT IN FAVOR OF THE PASTRIES HELPED HIMSELF TO YET ANOTHER CUP OF COFFEE AND SAT DOWN FOR A PRESENTATION BUT THE MEETINGS WENT ON AND ON MR YORK FIDGETED AS ONE EXECUTIVE KATHY HOWELL DELIVERED A SPIEL ABOUT THE TECHNOLOGY FOR DELIVERING SOFTWARE ELECTRONICALLY HIS HINTS OF IMPATIENCE WEREN'T NOTICED AND WHEN SHE TRIED TO EXPLAIN A GRAPHIC DETAILING THE COST PER MEGABYTE OF ZAPPING SOFTWARE OVER PHONE LINES HE ERUPTED I WANT TO GET OFF THAT SLIDE HE SAID STERNLY CUTTING TO THE CHASE WHERE DO YOU WANT TO TAKE THIS BUSINESS GET ME TO THE END AND TELL ME WHERE YOU WANT TO GO MS HOWELL DIRECTOR OF WORLDWIDE SOFTWARE PACKAGING THEN LAUNCHED INTO A DISCUSSION OF NETWORKING TOOLS FURTHER EXASPERATING MR YORK WHO BELIEVES IBM SPENDS TOO MUCH TIME ON THE NUTS AND BOLTS AND DOESN'T FOCUS ENOUGH ON WHERE IT CAN GAIN A PRODUCT EDGE AS A COMPANY HE TOLD HIS HOSTS WE'RE STILL WORRYING TOO MUCH ABOUT WHETHER THE SPAGHETTI INSIDE IS FIBER OR CABLE WE NEED TO FOCUS ON WHERE WE CAN ADD VALUE MS HOWELL GAVE UP AND SAT DOWN HE PICKED ON ME SHE SAID LATER ALTHOUGH SHE UNDERSTANDS MR YORK'S GRIPE SPARE HIM THE ARCANE DETAILS GIVE HIM THE BROAD STRATEGY WE'LL NEVER MAKE THAT MISTAKE AGAIN SHE SAID THE NEXT EXECUTIVE DIDN'T FARE MUCH BETTER AS HE TRIED TO EXPLAIN A NEW CDROM SYSTEM THAT LETS CUSTOMERS DOWNLOAD A PROGRAM FROM VARIOUS TITLES WITHOUT GOING TO A COMPUTER STORE MR YORK WASN'T IMPRESSED TEN MINUTES INTO LUNCH HE SAID HE WAS READY TO FLY BACK TO ARMONK ON THE PLANE MR YORK RELAXED A BIT CHEWED SOME GUM AND SIPPED MORE COFFEE HE PLANNED TO HEAD BACK TO HEADQUARTERS AND CRUNCH SOME MORE NUMBERS ALTHOUGH IT WAS ALREADY APPARENT THE TRIP HADN'T YIELDED ANY PARTICULAR COSTCUTTING BREAKTHROUGHS BUT THAT'S ALL RIGHT HE SAID THERE'S NO MAGIC BULLET IT'S GOING TO BE A LITTLE HERE AND A LITTLE THERE 9401260060 940126 BUSINESS BRIEF NASHUA CORP PAYMENT AND GAIN PLANNED AFTER ARBITRATOR'S RULING NASHUA CORP SAID IT WILL MAKE A PAYMENT OF 13 MILLION PLUS INTEREST TO GESTETNER HOLDINGS PLC FOR AN ARBITRATOR'S RULING ON CLAIMS ASSOCIATED WITH NASHUA'S SALE OF ITS INTERNATIONAL OFFICE SYSTEMS BUSINESS TO GESTETNER NASHUA SAID IT WILL RECOGNIZE A GAIN FROM DISCONTINUED OPERATIONS OF 25 MILLION OR 40 CENTS A SHARE IN THE FOURTH QUARTER FROM THE RESOLUTION OF THE CLAIM THE NASHUA NH COMPANY HAD BEEN REQUIRED TO DEFER RECOGNITION OF ANY GAIN OR LOSS FROM THE SALE PENDING THE RESOLUTION NASHUA A COMPUTER AND OFFICE PRODUCTS CONCERN SOLD THE OFFICE SYSTEMS BUSINESS IN 1990 FOR 202 MILLION WHICH INCLUDED 51 MILLION IN DEBT ASSUMED BY GESTETNER GESTETNER QUESTIONED THE FINAL VALUATION RESULTING IN 182 MILLION IN CLAIMS SUBMITTED FOR ARBITRATION THE COMPANY REPORTED EARNINGS OF 22 MILLION OR 35 CENTS A SHARE ON SALES OF 1452 MILLION FOR THE FOURTH QUARTER ENDED DEC 31 1992 THE RESULTS INCLUDED A GAIN OF 900000 FOR THE SETTLEMENT OF LITIGATION WITH MINISCRIBE CORP AND 12 MILLION FROM THE SALE OF STOCK 9401260059 940126 MARKETING & MEDIA TIME WARNER DOESN'T PLAN A BOARD SEAT FOR SEAGRAM MIAMI BEACH TIME WARNER INC'S CHIEF EXECUTIVE OFFICER GERALD LEVIN SAID IT DOESN'T INTEND AT PRESENT TO ADD A REPRESENTATIVE TO ITS BOARD FROM SEAGRAM CO WHICH LAST WEEK RAISED ITS TIME WARNER STAKE TO 117 FROM 104 MR LEVIN SAID AT A NEWS CONFERENCE THAT SEAGRAM HASN'T ASKED TO JOIN AND WE HAVEN'T INVITED THEM MR LEVIN WAS THE KEYNOTE SPEAKER AT THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES CONFERENCE HERE THERE HAS BEEN SPECULATION ON WALL STREET THAT TIME WARNER IS UNDER PRESSURE TO ADD ONE OR MORE SEAGRAM'S MEMBERS TO ITS BOARD BUT MR LEVIN SAID THAT IN THE LAST YEAR TIME WARNER HAS REDUCED THE SIZE OF ITS BOARD TO 15 FROM 24 AND WILL LIKELY CUT IT FURTHER TO 10 TO 12 MEMBERS OUR PROGRAM AND PLAN IS TO CONTINUE TO PROBABLY REDUCE THE SIZE OF THAT BOARD AND NOT INCREASE IT HE SAID SEAGRAM HAS MAINTAINED THAT ITS INVESTMENT IN TIME WARNER IS FRIENDLY TO MANAGEMENT AND MR LEVIN SAID WE CERTAINLY TAKE THEM AT THEIR WORD BUT THE DAY AFTER SEAGRAM INCREASED ITS STAKE TIME WARNER ANNOUNCED A NEW POSIONPILL PLAN THAT EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO 15 SEAGRAM WHICH HAS SAID IT WILL BUY AS MUCH AS TO 15 CRITICIZED THE MOVE SEPARATELY A HOLDER SUIT CHARGING THAT TIME WARNER DIRECTORS AND OFFICERS BREACHED THEIR FIDUCIARY DUTY BY ADOPTING ENTRENCHMENT MEASURES WITH THE POISON PILL WAS FILED YESTERDAY IN DELAWARE CHANCERY COURT TIME WARNER SAID IT FEELS THERE'S NO BASIS FOR THE SUIT 9401260058 940126 BUSINESS BRIEF ANDERSON EXPLORATION LTD SALE OF 35 MILLION SHARES TO UNDERWRITERS IS SLATED ANDERSON EXPLORATION LTD SAID IT AGREED TO SELL 35 MILLION COMMON SHARES TO A GROUP OF CANADIAN UNDERWRITERS FOR 31 CANADIAN DOLLARS 2363 A SHARE THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID NET PROCEEDS OF C1042 MILLION AFTER EXPENSES AND UNDERWRITING FEES WILL BE USED TO FINANCE GAS DEVELOPMENT PROJECTS AND REDUCE BANK DEBT THE TRANSACTION WOULD RAISE THE NUMBER OF ANDERSON SHARES OUTSTANDING TO ABOUT 282 MILLION FROM 247 MILLION THE SHARES CLOSED YESTERDAY AT C31 DOWN 75 CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE ANDERSON'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER DAVID SCOBIE SAID HE EXPECTS THE COMPANY TO CUT ITS LONGTERM BANK DEBT TO BETWEEN C80 MILLION AND C90 MILLION BY ITS SEPT 30 FISCAL YEAR END FROM C1415 MILLION CURRENTLY 9401260057 940126 BUSINESS BRIEF RUBBERMAID INC LITTLE TIKES UNIT TO BUILD TOY PLANT IN LUXEMBOURG RUBBERMAID INC SAID IT WILL INVEST MORE THAN 10 MILLION TO BUILD A PRODUCTION PLANT FOR ITS LITTLE TIKES PLASTIC TOYS IN DIFFERDANGE LUXEMBOURG RUBBERMAID BASED IN WOOSTER OHIO SAID IT ALSO WILL CONSTRUCT AT THE DIFFERDANGE SITE A DISTRIBUTION FACILITY FOR ITS LITTLE TIKES OFFICE PRODUCTS AND COMMERCIAL PRODUCTS BUSINESSES RUBBERMAID SAID IT WANTS TO INCREASE THE LEVEL OF NONUS REVENUE TO 25 OF THE TOTAL FROM 15 BY 2000 THE COMPANY HAD SALES OF ABOUT 18 BILLION IN 1992 9401260056 940126 TECHNOLOGY & HEALTH ESPY IS EXPECTED TO URGE STRICTER MEAT INSPECTIONS A YEAR AFTER TWO WEST COAST CHILDREN DIED FROM EATING TAINTED HAMBURGER AGRICULTURE SECRETARY MIKE ESPY IS EXPECTED TODAY TO ANNOUNCE STEPS TO REDUCE CHANCES OF SIMILAR OUTBREAKS HIS RECOMMENDATIONS ARE LIKELY TO INCLUDE A MUCH TOUGHER MEATINSPECTION SYSTEM THAT RELIES MORE ON SCIENTIFIC TESTING AND LESS ON VISUAL EXAMINATION WHILE MR ESPY'S OFFICE WOULDN'T COMMENT ON SPECIFIC PROPOSALS AIDES BILLED THE ANNOUNCEMENT AT A FOODSAFETY SEMINAR IN NEW YORK TONIGHT AS SIGNIFICANT ADDING IF THERE'S ONE THING HE'S ADAMANT ABOUT IT'S TO CHANGE THE INSPECTION SYSTEM AT ALL LEVELS THE SECRETARY TOOK OFFICE AMID WIDESPREAD CONCERN ABOUT THE SAFETY OF MEAT AFTER THE FATALITIES LINKED TO UNDERCOOKED HAMBURGER SERVED AT JACK IN THE BOX FASTFOOD RESTAURANTS THE DEATHS WERE CAUSED BY THE BACTERIA ECOLI 0157H7 WHICH SINCE HAS BEEN BLAMED FOR HUNDREDS OF ILLNESSES NATIONWIDE MR ESPY RECENTLY WAS BRIEFED BY USDA SCIENTISTS ON A RAPIDDETECTION TEST FOR ECOLI AND OTHER FOODBORNE PATHOGENS AS WELL AS ANTIBACTERIAL SPRAYS THAT COULD BE USED ON CARCASSES IN MEATPROCESSING PLANTS AIDES SAY 9401260055 940126 WHO'S NEWS COWEN & CO COWEN & CO NEW YORK KURT B KARMIN 65 YEARS OLD WAS NAMED A MANAGING DIRECTOR AT THIS INTERNATIONAL INVESTMENT FIRM'S CHICAGO OFFICE MR KARMIN IS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BROKERAGE FIRM RODMAN & RENSHAW IN CHICAGO 9401260054 940126 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WORLD TRADE GROWTH SLOWED TO LESS THAN 3 IN 1993 FROM 4 IN 1992 MAINLY BECAUSE OF A DECLINE IN THE FLOW OF GOODS ACROSS BORDERS IN WESTERN EUROPE WHICH ACCOUNTS FOR 47 OF THE GLOBAL ACTIVITY BUT PRODUCTION GROWTH DOUBLED TO AN ESTIMATED 2 THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID AT THE MULTILATERAL TRADE GROUP'S ANNUAL MEETING IN GENEVA SHARP GROWTH LAST YEAR IN AREAS SUCH AS NORTH AMERICA WHICH ACCOUNTS FOR 18 OF THE WORLD TOTAL AND ASIA INCLUDING CHINA COULDN'T OFFSET THE TRADE DECLINE AMONG SLUGGISH EUROPEAN ECONOMIES TRADE IN THE EUROPEAN UNION FORMERLY THE EUROPEAN COMMUNITY WAS THE MOST DEPRESSED BECAUSE OF AILING SECTORS SUCH AS AUTOS WESTERN EUROPEAN ECONOMIES SHOWED SIGNS OF RECOVERY IN THE 1993 FOURTH QUARTER AND CONSUMERS AND INVESTORS IN RECESSIONHIT ECONOMIES COULD REGAIN CONFIDENCE BOLSTERED BY THE RECENT NORTH AMERICAN AND WORLD TRADELIBERALIZATION AGREEMENTS A GATT OFFICIAL SAID A JAPANESE COURT ORDERED 12 FACTORIES IN TOKYO'S INDUSTRIAL BELT TO PAY A TOTAL OF 65 MILLION TO 106 AREA RESIDENTS AS COMPENSATION FOR ILLNESSES FROM TAINTED AIR THOUGH THE KAWASAKI COURT HELD THE FIRMS RESPONSIBLE FOR AIR POLLUTION IT DISMISSED DEMANDS THAT THEY REDUCE PLANT EMISSIONS THE SECOND SUCH RULING IN JAPAN WHICH ENCOURAGES INDUSTRIAL DEVELOPMENT THE 1982 LAWSUIT HAD BEEN FILED BY 128 RESIDENTS SEEKING 236 MILLION IN COMPENSATION AND TIGHTER POLLUTION CONTROLS THE COURT ALSO REJECTED A CLAIM THAT AUTO EXHAUST CONTRIBUTED TO THE POLLUTION AND HEALTH PROBLEMS THUS RELIEVING THE GOVERNMENT AND HIGHWAY OPERATORS OF LIABILITY CHINA'S COMMUNIST PARTY ORDERED TOUGH CONTROLS ON THE MEDIA SAYING IDEOLOGICAL RECTITUDE IS ESSENTIAL TO THE RULING PARTY'S POWER AND SUCCESS WITH ECONOMIC REFORMS PROPAGANDA OFFICIALS NATIONWIDE ARE TO BE INDOCTRINATED TO GUIDE PUBLIC OPINION ABOUT THE SWEEPING SHIFT TO A SOCALLED SOCIALIST MARKET ECONOMY ALLOWING FURTHER REFORMS AS THE GOVERNMENT HAS OVERHAULED ITS TAX AND BANKING SYSTEM LIBERALIZED PRICES AND CUT SUBSIDIES IT ALSO HAS FACED THREATS TO ITS AUTHORITY FROM DISAFFECTION WITH HIGH INFLATION CHRONIC CORRUPTION AND ECONOMIC DISLOCATIONS JUST 163 OF JAPANESE COMPANIES ALLOW EMPLOYEES LEAVE TO CARE FOR ILL OR ELDERLY FAMILY MEMBERS UP ONLY SLIGHTLY FROM 141 THREE YEARS AGO A LABOR MINISTRY SURVEY FOUND BUT 51 OF THE 8000 FIRMS WITH AT LEAST 30 WORKERS OFFER CHILDCARE LEAVES WITH JAPANESE SOCIETY AGING RAPIDLY THE MINISTRY HAS BEEN PREPARING LEGISLATION ON NURSING LEAVES WITH JOB PROTECTION THESE LEAVES ARE MORE COMMON AT LARGE COMPANIES AND SCARCE AT SMALL AND MIDSIZE FIRMS THOUGH A 1991 LAW REQUIRES CHILDCARE LEAVES IT LACKS A PENALTY FOR ANY VIOLATIONS SO COMPLIANCE HAS BEEN SLOW PRIME MINISTER BENAZIR BHUTTO OPENED PAKISTAN'S FIRST ALLFEMALE POLICE STATION AS PART OF HER CAMPAIGN FOR EQUAL RIGHTS FOR WOMEN ABOUT 50 FEMALE OFFICERS STAFF THE RAWALPINDI STATION JOINING PUNJAB'S PROVINCIAL FORCE OF 85000 MEN AT THE SAME PAY SCALES MRS BHUTTO SAID FINANCIAL INDEPENDENCE IS THE KEY TO DETERRING ABUSES OF WOMEN IN THE PREDOMINANTLY ISLAMIC MALEDOMINATED SOCIETY WHERE WOMEN TYPICALLY GET LESS EDUCATION THAN MEN AND MARRY EARLY MRS BHUTTO HAS PROMISED TO PUT WOMEN IN 10 OF TOP POLICE POSTS AND ON THE COUNTRY'S HIGHEST COURT AND TO SET UP SPECIAL COURTS FOR CASES AGAINST WOMEN ABOUT 50000 CONDOMINIUMS WILL BE OFFERED FOR SALE IN THE TOKYO AREA THIS YEAR A 13 INCREASE FROM LAST YEAR AND THE HIGHEST TOTAL SINCE 1983 A PRIVATE RESEARCH FIRM ESTIMATED INCLUDING UNSOLD CONDOS THAT WERE PUT ON THE MARKET LAST YEAR THE TOTAL SUPPLY THIS YEAR WILL INCREASE 7 TO 56700 THE HASEKO CORP GENERAL RESEARCH INSTITUTE SAID DEMAND IS EXPECTED TO BE BRISK BECAUSE OF RECORDLOW MORTGAGE RATES PUBLICSECTOR UNIONS IN PORTUGAL SAID AT LEAST 85 OF THEIR 630000 MEMBERS STAGED A ONEDAY STRIKE OVER PAY THE GOVERNMENT SAID THE ESTIMATE WAS EXAGGERATED THE WALKOUT CLOSED SCHOOLS AND HALTED PUBLIC TRANSIT AND MOST HOSPITAL SERVICES THE UNIONS HINTED AT A GENERAL STRIKE IF THE CENTERRIGHT GOVERNMENT REFUSED TO INCREASE ITS OFFER OF A 2 PAY RAISE FOR 1994 WHEN ANNUAL INFLATION IS TARGETED BETWEEN 4 AND 55 SAYING THE 2 OFFER WOULD BE CANCELED BY A 2 INCREASE IN WORKERS' PENSION CONTRIBUTIONS THE UNIONS WANT WAGES BOOSTED AT LEAST 6 THE GOVERNMENT REITERATED IT WOULDN'T BUDGE SAYING ECONOMIC RECOVERY AND JOB CREATION HINGE ON WAGE MODERATION IN BOLIVIA A ONEDAY GENERAL STRIKE TO DEMAND A HIGHER MINIMUM WAGE AND PROTEST GOVERNMENT PLANS TO LET PRIVATE INVESTORS BUY AS MUCH AS HALF OF STATEOWNED COMPANIES GOT ONLY LIMITED SUPPORT UNIONS THEN AGREED TO OPEN TALKS WITH THE ECONOMICALLY CONSERVATIVE GOVERNMENT WHICH HAD DECLARED THE NATIONAL STRIKE ILLEGAL COMMERCIAL AND RESIDENTIAL RENTS IN HONG KONG WILL INCREASE AT LEAST 10 THIS YEAR A PROPERTY AGENCY ESTIMATED OFFICE RENTS LAST YEAR SOARED 39 AS DEMAND QUICKLY ABSORBED AVAILABLE SPACE A CANADIAN ARBITRATION PANEL RULED THAT AN EMPLOYEE OF TORONTO'S HOUSING AGENCY WHO DIDN'T TURN UP FOR WORK BECAUSE HE HAD A HANGOVER IS ENTITLED TO SICK PAY 9401260053 940126 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMPHENOL CORP A COMBINED PRIMARY AND SECONDARY OFFERING OF ITS CLASS A COMMON STOCK VIA MERRILL LYNCH & CO LEHMAN BROTHERS INC AND SMITH BARNEY SHEARSON INC BORROR CORP AN OFFERING OF TWO MILLION COMMON SHARES VIA MCDONALD & CO SECURITIES INC AND OHIO CO FIDELITY ASIA EMERGING MARKETS FUND INC AN OFFERING OF FOUR MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MERRILL LYNCH & CO MORGAN STANLEY GROUP INC A SHELF OFFERING FOR 3 BILLION OF DEBT SECURITIES WARRANTS TO PURCHASE DEBT SECURITIES AND PREFERRED SHARES VIA MORGAN STANLEY & CO NATURAL MICROSYSTEMS CORP AN OFFERING OF 14 MILLION COMMON SHARES AT AN ESTIMATED PRICE OF 8 TO 10 A SHARE VIA FIRST ALBANY CORP A UNIT OF FIRST ALBANY COS AND PENNSYLVANIA MERCHANT GROUP LTD NPS PHARMACEUTICALS INC AN OFFERING OF 25 MILLION COMMON SHARES VIA PAINEWEBBER INC AND VECTOR SECURITIES INTERNATIONAL INC 9401260052 940126 BUSINESS BRIEF RUSTOLEUM CORP FAMILY THAT CONTROLS FIRM HIRES ADVISER TO FIND BUYER RUSTOLEUM CORP A CLOSELY HELD MAKER OF PROTECTIVE COATINGS SAID THE FAMILY THAT OWNS 90 OF THE COMPANY HIRED LEHMAN BROTHERS TO FIND A BUYER RUSTOLEUM OF VERNON HILLS ILL HAD REVENUE OF ABOUT 132 MILLION IN THE YEAR ENDED OCT 31 1993 AND ITS OPERATING PROFIT HAS RISEN IN EACH OF THE PAST FIVE YEARS THE COMPANY SAID IT WOULDN'T DISCLOSE EARNINGS OR AN ASKING PRICE FOR THE COMPANY DONALD C FERGUSSON CHAIRMAN AND PRESIDENT AND A MEMBER OF THE CONTROLLING FAMILY SAID THAT ALIGNING RUSTOLEUM WITH A LARGER COMPANY COULD HELP BRING THE RESOURCES NEEDED FOR FURTHER GROWTH THE COMPANY WAS FOUNDED IN 1921 AND SELLS ITS PAINT PRODUCTS THROUGH 35000 RETAIL OUTLETS THE COMPANY EMPLOYS 465 PEOPLE AND HAS MANUFACTURING PLANTS IN WISCONSIN MARYLAND AND OKLAHOMA 9401260051 940126 BUSINESS BRIEF ANADARKO PETROLEUM CORP ENERGY RESERVES INCREASED BY 63 DURING LAST YEAR ANADARKO PETROLEUM CORP SAID ITS ENERGY RESERVES GREW BY 63 TO THE EQUIVALENT OF 391 MILLION BARRELS OF OIL AT THE END OF 1993 UP FROM 368 MILLION A YEAR EARLIER THE HOUSTON OIL AND NATURALGAS COMPANY SAID ITS FINDING COST WAS 355 A BARREL COMPARED WITH 461 A BARREL IN 1992 ANADARKO SAID IT PRODUCED THE EQUIVALENT OF 375 MILLION BARRELS IT REPLACED 606 BARRELS OR 162 OF THE RESERVES PRODUCED IN 1993 ANADARKO REPORTED PROVEN RESERVES ON DEC 31 OF 188 TRILLION CUBIC FEET OF NATURAL GAS AND 785 MILLION BARRELS OF OIL CONDENSATE AND NATURALGAS LIQUIDS COMPARED WITH 173 TRILLION CUBIC FEET OF NATURAL GAS AND 803 MILLION BARRELS OF OIL CONDENSATE AND NATURALGAS LIQUIDS AT THE END OF 1992 9401260050 940126 BUSINESS BRIEFS GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED ORDERS TOTALING MORE THAN 120 MILLION TO PROVIDE POWERGENERATION EQUIPMENT FOR PROJECTS IN EGYPT AND SAUDI ARABIA HOMECARE MANAGEMENT INC SIGNED A LETTER OF INTENT TO ACQUIRE THE MURRAY GROUP PITTSBURGH FOR A TOTAL PRICE OF 17 MILLION THE AMOUNT INCLUDES 75 MILLION IN CASH 85 MILLION IN COMMON STOCK PLUS A 1 MILLION CASH BONUS IF PERFORMANCE GOALS FOR THE YEAR ENDING APRIL 30 1995 ARE MET SPECTRANETICS CORP COLORADO SPRINGS COLO AGREED TO ACQUIRE ADVANCED INTERVENTIONAL SYSTEMS INC FOR ABOUT 172 MILLION IN STOCK TWO MONTHS AFTER THE MEDICALPRODUCTS COMPANIES BACKED AWAY FROM A SIMILAR MERGER ACCORD VENCOR INC HAS ACQUIRED CLAY MEMORIAL HOSPITAL GREEN COVE SPRINGS FLA FROM CLAY COUNTY HOSPITAL AUTHORITY ALSO BASED IN GREEN COVE SPRINGS TERMS WEREN'T DISCLOSED SYBASE INC WILL ACQUIRE FOR 25 MILLION IN STOCK OR 550000 SHARES ALL OF THE CAPITAL STOCK OUTSTANDING OF MICRO DECISIONWARE INC A BOULDER COLO DATABASE COMPANY THAT IS MAJORITYOWNED BY SAFEGUARD SCIENTIFICS WAYNE PA PAXAR CORP PEARL RIVER NY FORMED A SUBSIDIARY IN POLAND TO PRODUCE GARMENT LABELS AND TO SELL ITS COMPLETE LINE OF PRINTING MACHINES AND MATERIALS 9401260049 940126 INTERNATIONAL BRIEF BOUYGUES SA PROFIT DROPPED 34 IN 1993 LOSS AT A DIVISION IS CITED BOUYGUES SA A LEADING EUROPEAN PUBLIC WORKS AND CONSTRUCTION CONCERN SAID IN PARIS THAT LOSSES INCURRED BY ITS PROPERTY DIVISION HELPED TO PUSH ITS CONSOLIDATED NET PROFIT DOWN 34 IN 1993 TO ABOUT 450 MILLION FRANCS 759 MILLION THE ESTIMATED FIGURE IS MUCH LOWER THAN HAD BEEN EXPECTED BY EQUITY ANALYSTS WHO HAD BEEN PROJECTING A FIGURE CLOSER TO 560 MILLION FRANCS APART FROM THE WEAKNESS OF ITS PROPERTY DIVISION WHICH IS ESTIMATED TO HAVE INCURRED A LOSS OF ABOUT 150 MILLION FRANCS LAST YEAR COMPARED WITH A PROFIT OF 91 MILLION FRANCS IN 1992 THE GROUP'S OTHER BUSINESSES PERFORMED WELL IN A DIFFICULT ENVIRONMENT INCREASING THEIR SHARES OF IMPORTANT MARKETS 9401260048 940126 THREE BIGGEST US AIRLINES TO MATCH TWA PROMOTION SEVERAL BIG AIRLINES MATCHED TWO FARE PROMOTIONS THAT OFFER MAJOR DISCOUNTS FOR DOMESTIC TRAVEL ONE OF THE LIMITEDTIME PROMOTIONS LAUNCHED YESTERDAY BY TRANS WORLD AIRLINES OFFERED DISCOUNTS OF AS MUCH AS 35 TWA BASED IN MOUNT KISCO NY SAID THE LOWERPRICED TICKETS WILL BE GOOD THROUGH MAY 15 FOR TRAVEL IN THE CONTINENTAL US TO HAWAII AND SAN JUAN PUERTO RICO A SEPARATE PROMOTION ALSO INITIATED BY TWA OFFERS LOWER FARES TO FLORIDA FROM NEW YORK PHILADELPHIA BOSTON AND WASHINGTON THE ROUNDTRIP FARES FROM 198 TO 258 DEPENDING ON THE WEEKDAY OFFER SAVINGS OF AS MUCH AS 45 TWA SAID THOSE FARES ARE GOOD FOR TRAVEL THROUGH FEB 15 UNDER BOTH PROGRAMS WHICH REQUIRE SATURDAY NIGHT STAYS AND ADVANCE PURCHASES TICKETS MUST BE BOUGHT BY FRIDAY THE NATION'S THREE LARGEST CARRIERS UAL CORP'S UNITED AIRLINES AMR CORP'S AMERICAN AIRLINES AND DELTA AIR LINES ALL SAID THEY WOULD MATCH THE PROMOTIONS SOMETIMES WITH DIFFERENCES IN RULES AND RESTRICTIONS IN MARKETS WHERE THEY COMPETE WITH TWA 9401260047 940126 FOREIGN EXCHANGE MARK DECLINES AGAINST MOST CURRENCIES AMID WORRIES OVER GERMANY'S ECONOMY BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE GERMAN MARK SPENT MOST OF THE DAY GETTING KICKED AROUND BY ITS FOREIGN COUNTERPARTS GAINING ONLY AGAINST THE DOLLAR AS THE US CURRENCY AGAIN FAILED TO BREAK A KEY TECHNICAL LEVEL BEHIND THE MARK'S DECLINE WAS CONTINUED BAD FEELINGS ABOUT GERMANY'S ECONOMIC SITUATION TRADERS SAID AND THE PERCEPTION THAT THE BUNDESBANK ISN'T READY TO FUEL GROWTH BY LOWERING INTEREST RATES ANY TIME SOON LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17496 MARKS DOWN FROM 17508 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11090 YEN DOWN FROM 11170 YEN STERLING WAS TRADING AT 14945 VIRTUALLY UNCHANGED FROM 14946 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11050 YEN AND AT 17465 MARKS EXACERBATING THE GERMAN CURRENCY'S PROBLEMS WAS BULLISH NEWS ELSEWHERE THE MARK LOST GROUND AGAINST THE ITALIAN LIRA AS A NEW POLITICAL COALITION FORMED IN ROME AND IT SANK AGAINST SWEDEN'S KRONA ON STRONG CURRENTACCOUNT DATA FROM STOCK HOLM THE MARK ALSO FELL AGAINST THE BELGIAN AND SPANISH CURRENCIES AFTER THOSE TWO COUNTRIES CUT INTEREST RATES THE MARK WAS SO OUT OF FAVOR THAT IT EVEN LOST VALUE AGAINST THE YEN DESPITE NEW RUMORS THAT JAPAN'S GOVERNMENT MIGHT BE HEADING FOR A FALL MEANWHILE TWO KEY BUNDESBANK MEMBERS AGAIN EXPRESSED DETERMINATION TO KEEP INTEREST RATES STEADY VICE PRESIDENT JOHANN WILHELM GADDUM SAID CUTS WOULD NOT BE EVEN CONSIDERED UNTIL GROWTH IN GERMANY'S M3 MONEY SUPPLY CAME CLOSER TO THE BANK'S 46 ANNUAL GROWTH TARGET DECEMBER M3 DATA THE RELEASE OF WHICH HAS BEEN DELAYED UNTIL NEXT WEEK IS EXPECTED TO SHOW GROWTH AS HIGH AS 72 REIMUT JOCHIMSEN A MEMBER OF THE BUNDESBANK'S POLICY COMMITTEE SAID STA BILITY OF THE MARK WAS AN ESSENTIAL INGREDI ENT IN GERMANY'S ECONOMIC RECOVERY IM PLYING THAT RATE CUTS THAT MIGHT LOWER THE MARK'S VALUE WOULD NOT BE CONSIDERED BUT CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN & WECHSEL BANK IN NEW YORK SAID THE MARKET WAS ALREADY SURE THAT THE BUNDESBANK WOULD BE FORCED TO CUT RATES AND THAT THE GERMANS WEREN'T DOING THEMSELVES A FAVOR BY DELAYING IT THE LONGER THEY WAIT THE DEEPER THE CUT WILL HAVE TO BE MR AMENDOLA SAID THE MARK WAS ABLE TO GAIN AGAINST THE DOLLAR WHICH BOUNCED LOWER AFTER AGAIN FAILING TO BREAK THROUGH 17550 MARKS TRADERS SAID THERE WAS A STRONG PERCEPTION THAT MAJOR SELLERS PERHAPS CENTRAL BANKS ADJUSTING THEIR RESERVES WERE ACTIVE AT THAT LEVEL AT THE SAME TIME THERE IS ACTIVE INTEREST TO HOLD THE DOLLAR WHICH IS UNLIKELY TO FALL BELOW 17350 MARKS THEY SAID DESPITE THE MARK'S GAINS AGAINST THE DOLLAR THE GERMAN CURRENCY SANK AGAINST SUCH FORMER EUROPEAN WEAKLINGS AS THE SPANISH PESETA AND BELGIAN FRANC LATE IN NEW YORK THE MARK WAS TRADING AT AROUND 8083 PESETAS COMPARED WITH 8127 PESETAS LATE MONDAY AND AT 2073 BELGIAN FRANCS DOWN FROM 2082 FRANCS MONDAY ON MONDAY SPAIN CUT ITS BENCHMARK INTEREST RATE TO 875 FROM 9 BELGIUM WHICH ALSO HAS BEEN BESET BY POLITICAL PROBLEMS CUT ITS MAIN INTEREST RATE FOR MONEY MARKET LENDING TO 7 FROM 710 MR AMENDOLA SAID THOSE CUTS CHEERED THE MARKET AND GENERATED INTEREST IN THE FRANC AND PESETA THE SMALLER EUROPEAN COUNTRIES ARE BEING VERY PROACTIVE ABOUT THEIR ECONOMIES HE SAID THEY'RE ON THEIR WAY FAST TO HAVING A MUCH STRONGER ECONOMY THAN THE GERMANS THE BUNDESBANK'S MR JOCHIMSEN BRUSHED OFF SUGGESTIONS THE MARK LOOKED PALLID RATHER HE SAID EUROPEAN CURRENCIES WHICH HAD BEEN UNDERVALUED WERE SIMPLY REGAINING THEIR PROPER LEVELS INDEED ONE OF THE DAY'S BIGGEST WINNERS WAS THE ITALIAN LIRA THE MARK FELL TO 971 LIRE LATE IN NEW YORK TRADING FORM 974 LIRE LATE MONDAY SUPPORTING THE LIRA WAS NEWS THAT A NEW SEEMINGLY VIABLE CENTRIST PARTY HAD BEEN FORMED AHEAD OF ITALY'S MARCH ELECTIONS THE LIRA HAS BEEN SOLD HEAVILY IN RECENT MONTHS ON WORRIES ABOUT WHO WOULD BE IN POWER FOLLOWING THE RECENT CORRUPTION SCANDALS THE SWEDISH KRONA CONTINUED ITS COMEBACK AGAINST THE MARK TRADING AT ABOUT 45784 KRONOR LATE IN NEW YORK COMPARED WITH 47214 KRONOR LATE MONDAY 9401260046 940126 REVIEW & OUTLOOK EDITORIAL DEATH OF A STURGEON WHEN WE FIRST LOOKED INTO THE PECULIAR CASE OF THE ALABAMA STURGEON BACK IN NOVEMBER THE FISH HADN'T BEEN SPOTTED IN NEARLY A DECADE NEVERTHELESS THE US FISH AND WILDLIFE SERVICE WAS PRESSING AHEAD IN ITS QUEST FOR AN ENDANGERED SPECIES LISTING EVEN THOUGH THE US ARMY CORPS OF ENGINEERS WARNED THAT A LISTING MIGHT FORCE IT TO CURTAIL DREDGING ALONG SOME OF THE SOUTH'S BUSIEST COMMERCIAL WATERWAYS THE UNSPOTTED STURGEON WAS IN DANGER OF BECOMING THE NEXT SPOTTED OWL PROMPTING ALABAMA'S ENTIRE CONGRESSIONAL DELEGATION TO COME OUT AGAINST A LISTING A COUPLE OF WEEKS AFTER OUR EDITORIAL THE FRANTIC ANGLING OF THE GOVERNMENT'S BIOLOGISTS PAID OFF THEY CAUGHT ONE WHAT THIS DOES IS REMOVE ANY DOUBT THAT THE FISH STILL EXISTS EXULTED JAMES STEWART OF THE FISH AND WILDLIFE BUREAUCRACY WITH THE FISH NOW IN THEIR HANDS SCIENTISTS WERE WITHIN STRIKING DISTANCE OF SOLVING ANOTHER CONUNDRUM OF THE SORT THAT NOW OCCUPIES THE ENERGIES OF THE US POLITICAL SYSTEM WHETHER THE ALABAMA STURGEON REALLY REPRESENTS A RARE AND DISTINCT SPECIES FROM THE MISSISSIPPI SHOVELNOSE WHICH IS NEARLY IDENTICAL AND FROLICS IN ABUNDANCE IN WATERS FROM NORTH DAKOTA TO NEW ORLEANS OOPS ON NEW YEAR'S EVE THE PRIZED SPECIMEN WAS FOUND FLOATING BELLY UP IN ITS HOLDING POND CURIOUSLY THE PUBLIC WASN'T NOTIFIED UNTIL SOME FOUR DAYS LATER AND WHILE IT MAY BE PREMATURE TO CALL FOR AN INDEPENDENT COUNSEL OTHER SUSPICIOUS CIRCUMSTANCES ATTENDED THE FAMOUS FISH'S BRIEF LIFE IN FEDERAL CUSTODY ONE QUESTION CONCERNS HOW FWS EVEN KNEW IT HAD A NONSHOVELNOSE ON ITS HANDS THREE FRIENDLY BIOLOGISTS WERE BROUGHT IN TO MATCH THE FISH UP AGAINST THE 1991 ARTICLE IN THE BULLETIN OF THE ALABAMA MUSEUM OF NATURAL HISTORY THAT FIRST DUBBED THE HOMETOWN STURGEON AS A DIFFERENT CRITTER FROM THE SHOVELNOSE ONE OF THE SPECIALISTS SCOTT METTEE OF THE ALABAMA GEOLOGICAL SURVEY TELLS US THAT THE ACTUAL MEASUREMENTS JIBED WITH THE STANDARDS LAID OUT IN THE ARTICLE THOUGH WHETHER EYEBALL DIAMETERS AND SCALE COUNTS CAPTURE VARIATION WITHIN RATHER THAN BETWEEN SPECIES IS IN THE EYE OF THE BEHOLDER WHILE THE STURGEON LIVED ITS CAPTORS REBUFFED SEVERAL REQUESTS FOR A BLOOD SAMPLE FROM THE CORPS OF ENGINEERS THIS SEEMS STRANGE FOR JOINTLY THE CORPS AND FWS HAVE DEVELOPED A LARGE DATABASE ON THE BLOOD GENETICS OF THE MISSISSIPPI SHOVELNOSE AND A SAMPLE MIGHT HAVE SHOWN HOW CLOSELY THE BREEDS WERE RELATED WE WERE SHOCKED THAT THE SPECIMEN DIED AND WE MISSED AN OPPORTUNITY TO OBTAIN BLOOD TISSUE BRIAN PECK OF THE CORPS' MOBILE OFFICE TELLS US WHAT'S MORE THE DEAD STURGEON WAS IMMEDIATELY WRAPPED IN PAPER NOT THE JOURNAL AS FAR AS WE CAN FIND OUT AND FROZEN SPEEDING THE BREAKDOWN OF BLOOD PROTEINS AND AMINO ACIDS IT TOOK A FULL WEEK AFTER ITS SPIRIT HAD ASCENDED TO FISH HEAVEN BEFORE OUTSIDERS WERE EVEN ALLOWED TO EXAMINE THE CADAVER AND THEN ONLY FOR 15 MINUTES TIMED BY STOPWATCH AMONG THEM WAS MIKE HOWELL A LOCAL ICHTHYOLOGIST WHO LED THE RECOVERY EFFORT FOR THE ENDANGERED WATERCRESS DARTER BUT DOUBTS THAT THE STURGEON REPRESENTS A UNIQUE SPECIES HE WASN'T ALLOWED TO TAKE ANY TISSUE SAMPLES EITHER MR HOWELL WAS TOLD THAT FWS INTENDED TO PERFORM AN AUTOPSY AND THEN PRESERVE THE FISH IN FORMALDEHYDE POLLUTING THE TISSUE AND PROBABLY RULING OUT ANY CHANCE OF GENETIC ANALYSIS EVEN SO THE MYSTERY OF THE LATE STURGEON'S IDENTITY MAY STILL BE SOLVABLE THE FISH AND WILDLIFE FOLKS HAVE ACKNOWLEDGED TAKING AND FREEZING SAMPLES OF FIN TISSUE FROM THE LIVING FISH PROVIDING THERE'S ENOUGH OF THEM THESE FIN CLIPS COULD PROVIDE INSIGHT INTO CONNECTION BETWEEN THE SHOVELNOSE AND THE ALABAMA STURGEON THOUGH MR STEWART INSISTS THAT GENETICS IS NOT DISPOSITIVE IF THE FISHES LOOK DIFFERENT MR STEWART WHO OBJECTS TO OUR EARLIER CHARACTERIZATION OF HIM AS THE STURGEON'S POLITICAL CHAMPION SAYS I CONCENTRATE ON STAYING VERY BIOLOGICAL ON THIS ISSUE IN HIS VIEW IT'S THE CORPS OF ENGINEERS THAT'S MOTIVATED BY POLITICS NAMELY A DESIRE TO CURRY FAVOR WITH TUGBOAT OPERATORS AND LOCAL INDUSTRY AKA THE HUMANS FWS WASN'T ABOUT TO ANNOY THE ONLY LIVING SPECIMEN BY POKING AT IT FOR BLOOD SAMPLES OR MUSCLE TISSUE MR STEWART TELLS US RATHER HE WAS PRAYING THAT HE'D CATCH ANOTHER AND MAKE A BREEDING PAIR WE STRESS THAT THERE'S NO EVIDENCE OF FOUL PLAY HERE JUST ENDANGEREDSPECIES POLITICS AS USUAL BUT IT WOULD CERTAINLY BE MORE THAN A LITTLE IRONIC IF THE FWS IN ATTEMPTING TO PROVE THE ALABAMA STURGEON SHOULD BE PROTECTED ACCIDENTALLY KILLED THE LAST ONE AND THINGS WOULD BEGIN TO SMELL DISTINCTLY FISHY IF THE AGENCY WERE NOW TO STONEWALL ATTEMPTS TO GET TO THE BOTTOM OF THE GENETIC CONSANGUINITY BETWEEN THE COMMON SHOVELNOSE AND ITS ALABAMA COUSIN 9401260045 940126 ECONOMY US FAMILIES' NET WORTH FELL 12 FROM '88 TO '91 WASHINGTON THE LAST FEW YEARS HAVE INDEED BEEN TOUGH FINANCIAL TIMES FOR US FAMILIES THE MEDIAN NET WORTH OF THE NATION'S HOUSEHOLDS TUMBLED 12 FROM 1988 TO 1991 AFTER ADJUSTMENTS FOR INFLATION THE CENSUS BUREAU SAID IN A NEW REPORT THE DROP TO 36623 FROM 41472 IS MAINLY THE RESULT OF DECLINES IN HOME EQUITY INTERESTEARNING ASSETS AT FINANCIAL INSTITUTIONS CHECKING ACCOUNTS RENTAL PROPERTY AND ASSETS HELD IN BUSINESSES THE REPORT FOUND BIG ETHNIC DIFFERENCES BLACK FAMILIES HAD A MEDIAN NET WORTH OF ONLY 4604 IN 1991 AND HISPANIC FAMILIES HAD 5345 WHILE WHITE HOUSEHOLDS HAD A MEDIAN NET WORTH OF 44408 HOWEVER WHITES WERE THE ONLY RACIAL GROUP WITH A STATISTICALLY SIGNIFICANT DECLINE IN THEIR NET WORTH DURING THE PERIOD IT FELL MORE THAN 13 THE REPORT ALSO FOUND THAT BLACKS TEND TO HAVE A LARGER PERCENTAGE OF THEIR NET WORTH IN HOMES AND CARS WHILE THAT OF WHITES TENDS TO BE BASED IN STOCKS MUTUAL FUNDS AND CERTIFICATES OF DEPOSIT THOSE AMERICANS WITH ANNUAL INCOMES FROM 12852 TO 34968 ABOUT 20 OF THE POPULATION EXPERIENCED THE LARGEST DROPS IN NET WORTH THE POOREST FIFTH OF AMERICANS SAW THEIR NET WORTH RISE MORE THAN 4 WHILE THE RICHEST FIFTH SAW THEIRS DROP 5 THE DISTRIBUTION OF NET WORTH WAS BASICALLY UNCHANGED DURING THE FOURYEAR PERIOD THE RICHEST 20 OF AMERICANS HELD ABOUT 45 OF ALL THE WEALTH WHILE THE POOREST 20 HELD ONLY 7 9401260044 940126 BUSINESS BRIEF BARTON INDUSTRIES INC TWO FORMER EXECUTIVES ACCUSED OF FRAUD BY SEC TWO FORMER EXECUTIVES OF BARTON INDUSTRIES INC WERE ACCUSED BY THE GOVERNMENT OF FALSELY INFLATING THE VALUE OF THE COMPANY'S STOCK THEN PROFITING FROM BOTH SALES AND DONATIONS OF THE SHARES THE SECURITIES AND EXCHANGE COMMISSION ACCUSED CW EARL JOHNSON FORMER CHIEF EXECUTIVE OFFICER AND VICTOR L JOYCE FORMER CHIEF FINANCIAL OFFICER OF BARTON A MAKER OF OILFIELD EQUIPMENT IN SHAWNEE OKLA NEITHER DEFENDANT COULD BE REACHED FOR COMMENT THE SEC COMPLAINT FILED IN FEDERAL COURT IN OKLAHOMA ALLEGES THAT THE TWO EXECUTIVES DIRECTED BARTON ACCOUNTING PERSONNEL TO FALSIFY SALES AND THEREBY OVERSTATE EARNINGS BY AS MUCH AS 170 DURING THE 1989 AND 1990 FISCAL YEARS THE SEC COMPLAINT SAID BOTH MEN WERE TERMINATED BY BARTON INDUSTRIES IN FEBRUARY 1991 SHORTLY BEFORE THE COMPANY SOUGHT BANKRUPTCYCOURT PROTECTION TO REORGANIZE ITS DEBTS BARTON INDUSTRIES' ASSETS WERE SOLD TO ANOTHER COMPANY LAST NOVEMBER 9401260043 940126 ARBY'S PLANNING TO IMPOSE POLICY TO PROHIBIT SMOKING NEW YORK FASTFOOD CHAIN ARBY'S INC A UNIT OF TRIARC CO SAID IT WILL IMPOSE A NOSMOKING POLICY THIS SUMMER IN ALL OF ITS COMPANYOWNED RESTAURANTS THE MOVE IS THE LATEST IN A STRING OF EFFORTS BY TRIARC TO POLISH THE IMAGE OF ARBY'S AND ITS THREE OTHER CORE BUSINESSES ARBY'S BASED IN FORT LAUDERDALE FLA HAS 2248 RESTAURANTS IN THE US OF WHICH 257 ARE COMPANYOWNED TRIARC ALSO HAS INTERESTS IN SOFTDRINK MANUFACTURING TEXTILES AND PROPANE GAS THE SMOKEFREE POLICY WAS ANNOUNCED IN WASHINGTON AT A FORUM ON THE HEALTH RISKS OF PASSIVE SMOKING SPONSORED BY THE ATTORNEYS GENERAL OF 16 STATES WHO ARE PUSHING FASTFOOD CHAINS TO ADOPT NOSMOKING POLICIES LAST JULY MINNEAPOLISBASED DAIRY QUEEN URGED ITS FRANCHISEES TO ADOPT A NONSMOKING POLICY ALL CONTRACTS FOR NEW STORES CONTAIN A NOSMOKING CLAUSE ABOUT THREEFOURTHS OF THE 4862 DAIRY QUEEN OUTLETS HAVE INDOOR SEATING 9401260042 940126 WHAT'S NEWS BUSINESS AND FINANCE IBM REPORTED ITS FIRST QUARTERLY PROFIT SINCE THE SECOND QUARTER OF 1992 SIGNALING THAT TWO YEARS OF BIG CHARGES AND RESTRUCTURING MAY FINALLY BE TAKING HOLD BUT THE COMPANY STILL MANAGED TO DISAPPOINT WALL STREET WITH LOWERTHANANTICIPATED EARNINGS AND AN UNEXPECTED DECLINE IN SALES JEROME YORK CHIEF FINANCIAL OFFICER SAID HE EXPECTS AT LEAST A BREAKEVEN FIRST QUARTER AND THAT PROFIT MARGINS AND REVENUE WILL STAY FLAT OR RISE SLIGHTLY KODAK PLANS TO OFFER ITS FIRST ECONOMYBRAND FILM TO COMPETE WITH LOWPRICED RIVALS WHICH HAVE EATEN AWAY AT THE COMPANY'S MARKET SHARE SALES OF PREVIOUSLY OWNED HOMES GREW 67 IN DECEMBER CONTINUING THEIR RECORD CLIMB ANALYSTS ATTRIBUTED THE GAIN TO GREATER CONSUMER OPTIMISM AND FEAR THAT INTEREST RATES ARE MOVING UP THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX ROSE TO 832 IN JANUARY FROM 798 IN DECEMBER THE WHITE HOUSE WILL DEFER PLANS FOR ITS OWN TELECOMMUNICATIONS REFORM BILL AND THIS WEEK WILL OFFER ONLY LIGHT CRITICISM OF TWO MEASURES IN THE HOUSE GOVERNMENT OFFICIALS SAID USJAPAN TRADE TALKS REMAINED DEADLOCKED AFTER TWO DAYS RAISING THE POSSIBILITY THAT THERE WON'T BE A PACT BEFORE NEXT MONTH'S SUMMIT MEETING SPECTRUM HAS BEEN THE SUBJECT OF AN SEC PROBE SINCE LAST MAY ITS GENERAL COUNSEL SAID THE INQUIRY CENTERS ON LICENSING PACTS AND STATEMENTS BY SPECTRUM OFFICIALS ABOUT THEIR VALUE MCI PLANS TO BUILD A LONGDISTANCE NETWORK IN MEXICO WITH GRUPO FINANCIERO BANAMEXACCIVAL MEXICO'S LARGEST FINANCIAL GROUP THE JOINT VENTURE TO DELIVER VOICE DATA AND VIDEO SERVICES IS VALUED AT 1 BILLION STOCK PRICES SLID AS INVESTORS TOOK PROFITS FROM HIGHFLYING CYCLICAL STOCKS THE DOW JONES INDUSTRIALS DECLINED 1745 TO 389534 BOND PRICES ALSO FELL WALT DISNEY REPORTED RECORD EARNINGS AND REVENUE FOR ITS FIRST QUARTER BUOYED BY SURGING HOMEVIDEO SALES EXXON REPORTED A 71 INCREASE IN FOURTHQUARTER EARNINGS DESPITE SHARPLY LOWER OIL PRICES MEANWHILE PROFIT AT MOBIL AND CHEVRON TUMBLED COOPER INDUSTRIES' CHAIRMAN SAID 1994 PROFIT COULD DECLINE AS MUCH AS 25 BECAUSE OF A SLUMP IN OIL EXPLORATION FOR WHICH IT SELLS EQUIPMENT TOKYO SHARES ROSE 16 TUESDAY BOOSTED BY ARBITRAGERS AND FOREIGN INVESTORS BUYING AFTER MONDAY'S SLIDE CONDE NAST PUBLICATIONS NAMED JAMES TRUMAN TO SUCCEED ALEXANDER LIBERMAN AS ITS EDITORIAL DIRECTOR CAPITAL CITIES/ABC REPORTED A 21 JUMP IN FOURTHQUARTER PROFIT HELPED BY AN INCREASE IN BROADCAST REVENUE NORTHERN TELECOM POSTED A 59 DROP IN FOURTHQUARTER PROFIT PUSHING ITS STOCK DOWN 1375 TO 31375 A PROBE OF THE VANCOUVER STOCK EXCHANGE YIELDED RECOMMENDATIONS THAT THE PROVINCIAL GOVERNMENT MAKE SWEEPING CHANGES IN THE WAY THE VENTURECAPITAL MARKET IS REGULATED THE US PATENT OFFICE PLANS TO BEGIN HEARINGS TODAY ON WAYS TO IMPROVE ITS EVALUATION OF SOFTWARE PATENTS BONDS LEHMAN BROTHERS TREASURY INDEX 558036 OFF 1904 COMMODITIES OIL 1517 A BARREL UNCHANGED DOW JONES FUTURES INDEX 14265 OFF 047 SPOT INDEX 12953 UP 042 DOLLAR 11090 YEN OFF 080 17496 MARKS OFF 00012 9401260041 940126 BUSINESS BRIEF NEW ENGLAND ELECTRIC SYSTEM UNIT CANCELS PROPOSED PLANT IN EAST PROVIDENCE RI A UNIT OF NEW ENGLAND ELECTRIC SYSTEM ANNOUNCED THE CANCELLATION OF A PROPOSED 72500 KILOWATT COALFIRED POWER PLANT IN EAST PROVIDENCE RI THAT WOULD HAVE SOLD ITS OUTPUT TO THE COMPANY AND 11 MASSACHUSETTS MUNICIPALITIES THE UNIT NEW ENGLAND POWER ATTRIBUTED THE ACTION TO THE REGION'S ECONOMIC DOWNTURN AND LESS COSTLY GENERATION ALTERNATIVES SPOKESMAN DAVID SAAD SAID THE CANCELLATION WILL COST THE COMPANY 21 MILLION BUT THAT IT EVENTUALLY WILL RECOVER AT LEAST 9 MILLION OF THAT HE SAID THE COMPANY DOES NOT PLAN TO TAKE A CHARGE OR PASS ON THE COST TO RATEPAYERS IF APPROVED BY STATE AND FEDERAL AGENCIES NEW ENGLAND POWER AND TWO OF THE MUNICIPALITIES WILL MAKE CASH PAYMENTS TO NEWBAY'S OWNER RHODE ISLAND COGENERATION ASSOCIATES IN ADDITION NEW ENGLAND POWER WILL SELL SURPLUS POWER TO THE OTHER NINE MUNICIPALITIES ALLOWING IT TO RECOVER SOME OF ITS COSTS NEW ENGLAND POWER IS A WHOLESALE GENERATION AND TRANSMISSION UNIT OF NEW ENGLAND ELECTRIC SYSTEM A UTILITY HOLDING COMPANY BASED IN WESTBOROUGH MASS 9401260040 940126 MARKETING BRIEF TIMES MIRROR CO LOS ANGELES TIMES TO OFFER AD SALES WITH TWO PAPERS TIMES MIRROR CO'S FLAGSHIP LOS ANGELES TIMES SAID IT JOINED GANNETT CO'S SAN BERNARDINO SUN AND THE PRESSENTERPRISE OF RIVERSIDE CALIF TO OFFER COMBINED SALES OF ADVERTISING IN ALL THREE NEWSPAPERS THE HAYS FAMILY OWNS 60 OF THE PRESSENTERPRISE AND DOW JONES & CO HOLDS 21 THE LOS ANGELES ADI NETWORK AS THE PACKAGED OFFERING IS BEING CALLED WON'T OFFER MUCH REDUCTION FROM COMBINED RATES IN THE THREE PAPERS BUT IS INTENDED AS A SALES DEVICE TO COMPETE FOR NATIONAL ADVERTISING ACROSS THE LOS ANGELES REGION OFFICIALS AT THE LOS ANGELES TIMES SAID THE OFFICIALS ADDED THAT THE PACKAGED OFFERING WHICH WILL BE AVAILABLE FOR EITHER DISPLAY OR CLASSIFIED ADVERTISING WILL OFFER SUBSTANTIAL SAVINGS OVER TELEVISION ADVERTISING THEY SAID THE THREE NEWSPAPERS COMBINED REACH ABOUT 33 OF THE ADULTS IN THE VAST LOS ANGELES REGION AND ABOUT 48 OF ADULTS ON SUNDAYS 9401260039 940126 ECONOMY BUDGET DEFICIT NARROWED IN DECEMBER DUE TO QUIRK WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED TO 825 BILLION IN DECEMBER FROM 3895 BILLION A YEAR EARLIER THE TREASURY SAID MOSTLY BECAUSE OF A CALENDAR QUIRK SOCIAL SECURITY BENEFITS FOR JANUARY 1993 WERE ACTUALLY PAID OUT IN DECEMBER OF 1992 WIDENING THAT MONTH'S DEFICIT LAST MONTH'S DEFICIT COMPARED WITH A DEFICIT OF 3838 BILLION IN NOVEMBER FOR THE FIRST THREE MONTHS OF THE GOVERNMENT'S FISCAL YEAR WHICH BEGAN OCT 1 THE DEFICIT TOTALED 9206 BILLION COMPARED WITH A YEAREARLIER 12047 BILLION THE TREASURY SAID RECEIPTS TOTALED 12542 BILLION LAST MONTH COMPARED WITH 11368 BILLION A YEAR EARLIER AND 8311 BILLION IN THE PREVIOUS MONTH OUTLAYS TOTALED 13367 BILLION LAST MONTH COMPARED WITH 15263 BILLION A YEAR EARLIER AND 12149 BILLION IN NOVEMBER THE GOVERNMENT PAID 5271 BILLION IN INTEREST IN DECEMBER ON THE FEDERAL DEBT OUTLAYS FOR THE RESOLUTION TRUST CORP TOTALED 247 BILLION LAST MONTH THE RTC GENERATED 117 BILLION IN RECEIPTS IN NOVEMBER THROUGH THE SALE OF ASSETS OF FAILED SAVINGS AND LOAN ASSOCIATIONS 9401260038 940126 WHO'S NEWS EXNLRB MEMBER NAMED TO INTERIM SLOT ON THE LABOR BOARD WASHINGTON PRESIDENT CLINTON NAMED JOHN TRUESDALE TO AN INTERIM SLOT ON THE NATIONAL LABOR RELATIONS BOARD GIVING THE PANEL A QUORUM FOR THE FIRST TIME IN MORE THAN A MONTH MR TRUESDALE CURRENTLY EXECUTIVE SECRETARY OF THE BOARD AND A FORMER BOARD MEMBER BECOMES THE THIRD MEMBER OF THE PANEL WHICH IS DESIGNED TO HAVE FIVE MEMBERS THE NOMINATIONS OF STANFORD UNIVERSITY LAW PROFESSOR WILLIAM GOULD IV TO BE CHAIRMAN AND PHILADELPHIA LAWYER MARGARET BROWNING HAVE BEEN HELD UP IN THE SENATE BY REPUBLICANS WHO ARE FIGHTING FOR A SAY OVER THE THIRD VACANCY THE BOARD STOPPED TAKING CASES LATE LAST YEAR AFTER MEMBER JOHN RAUDABAUGH LEFT FOR PRIVATE PRACTICE LEAVING THE BOARD WITH ONLY TWO MEMBERS ONE SHORT OF A QUORUM THE RECESS APPOINTMENT OF MR TRUESDALE WHO SERVED ON THE BOARD FROM 1977 TO 1981 WILL END WHEN A NEW BOARD MEMBER IS CONFIRMED BY THE SENATE 9401260037 940126 GITANO DIRECTORS RESIGN BIG BOARD TO SEEK DELISTING NEW YORK THREE OUTSIDE DIRECTORS OF GITANO GROUP INC RESIGNED FROM THE TROUBLED APPAREL MAKER AND THE NEW YORK STOCK EXCHANGE SAID IT HAS SUSPENDED TRADING IN THE COMPANY'S SHARES AND WOULD SEEK TO DELIST THEM THE ACTIONS FOLLOW GITANO'S ANNOUNCEMENT MONDAY THAT IT WAS PUTTING ITSELF UP FOR SALE THE DIRECTORS WHO RESIGNED ARE MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US INC KEVIN KENNEDY A PARTNER AT GOLDMAN SACHS & CO AND NORMAN MATTHEWS A CONSULTANT WITH THE PROCESS TO SELL GITANO UNDER WAY THESE DIRECTORS BELIEVE THAT THEIR CONTRIBUTION TO GITANO IS COMPLETE AND THEY CAN NOW FOCUS ON THEIR OTHER BUSINESS INTERESTS ROBERT E GREGORY JR GITANO'S CHAIRMAN SAID THE BIG BOARD SAID IT WILL APPLY TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST GITANO BECAUSE GITANO SAID IT WAS UNLIKELY THAT A SALE OF THE COMPANY WOULD REALIZE AN AMOUNT IN EXCESS OF THE 130 MILLION THAT GITANO OWES ITS SECURED LENDERS THE EXCHANGE ALSO SAID GITANO NO LONGER MEETS CERTAIN LISTING CRITERIA 9401260036 940126 LEISURE & ARTS BOOKSHELF DECIPHERING THE JAPANESE DRESS CODE BY MARGARET SCOTT WHEN LIZA DALBY WAS YOUNGER AND LEARNING TO BE AN ANTHROPOLOGIST SHE LIVED AMONG THE GEISHA OF KYOTO FOR A TIME WORKING AS ONE HERSELF SHE WROTE A BOOK ABOUT HER EXPERIENCES CALLED GEISHA AND DEVELOPED A CONVENIENT OBSESSION THAT HAS LED TO KIMONO YALE UNIVERSITY PRESS 384 PAGES 30 ONCE AGAIN MS DALBY HAS A GREAT DEAL TO TELL STARTING WITH HER CONTENTION THAT CLOTHING AND WEARER MERGE IN JAPAN MORE THAN IN MOST PLACES THE KIMONO REMAINS AN IMPORTANT SYMBOL IN THE DEBATE OVER JAPANESENESS THAT LINGERS LIKE A BAD TOOTH TO BE PROBED BY INTELLECTUALS TELEVISION PROGRAMS AND SCHOLARLY JOURNALS TO BE SURE MANY MIDDLECLASS WOMEN SEEM TO TAKE TO THE ROLE OF CULTURAL CUSTODIANS AND ARE CONTENT TO WRAP THEMSELVES IN A KIMONO AS AN EXPRESSION OF NATIONAL PRIDE CULTURAL CONTINUITY AND CONSPICUOUS CONSUMPTION IN MODERN JAPAN CARRYING TRADITION DOESN'T COME CHEAPLY A PROPER KIMONO WITH ACCOUTERMENTS CAN COST 6500 A READYTOWEAR ENSEMBLE IN POLYESTER RUNS ABOUT 1200 WHAT IS IT ABOUT THE KIMONO THAT MAKES JAPANESE EITHER LOVE IT OR LOATHE IT FROM ITS HAZY ORIGINS IN THE FLOWING ROBES OF SEVENTHCENTURY CHINA TO ITS FIXED AND FROZEN CONTEMPORARY VERSION THE KIMONO HAS SERVED AS A CENTRAL PROP IN THE SAGA OF DEFINING JAPANESENESS MS DALBY CAST AS THE SCHOLARSTORYTELLER NARRATES A STILLUNFOLDING DRAMA IN WHICH CLOTHES SERVE AS EMBLEMS OF IDENTITY MS DALBY AS STORYTELLER IS AT HER BEST DESCRIBING THE ERA WHEN THE KIMONO MET ITS COMPETITOR WESTERN CLOTHING AROUND THE MIDDLE OF THE 19TH CENTURY ONLY THE SHOCK OF CONTRAST OCCASIONED BY SEEING THE DRESS OF THE OUTLANDISH WEST FORCED JAPANESE TO DEFINE WHAT THEY THEMSELVES REALLY WORE SHE WRITES OF WHAT HAPPENED ONCE JAPAN'S SEAL WAS BROKEN BY COMMODORE PERRY'S FLEET AND THEN WHEN A STREAM OF FOREIGNERS ARRIVED IN WESTERN GARB IT WAS ONLY THEN THAT THE WORD KIMONO KI MEANS TO WEAR AND MONO MEANS THINGS WAS BROUGHT INTO SERVICE AT ALL IT WAS ONLY WITH THE KNOWLEDGE OF OTHER WAYS OF DRESSING THAT ANYONE NEEDED A NAME FOR THE HOMEGROWN STYLE NOT LONG AFTER IN 1868 CAME THE MEIJI RESTORATION JAPAN EMBARKED ON SUCH A HEADY SUCCESSFUL DRIVE TO MODERNIZE THAT MANY BEGAN TO IDENTIFY UTTERLY WITH THE WEST OUT OF ASIA INTO THE WEST BECAME A SLOGAN AND CLOTHES BECAME A SYMBOL OF WHERE THE WEARER STOOD FOR OR AGAINST WESTERN INFLUENCE AT FIRST EVERYONE SEEMED TO EMBRACE WESTERN CLOTHING OR AT LEAST A LITTLE BIT OF IT HELD A LOT OF CACHET ON THE STREETS OF TOKYO THE MOST WONDERFUL CONFABULATIONS WERE PARADED KIMONOS WITH HIGHBUTTON SHOES BOWLER HATS AND CAPES BECAME THE RAGE WOMEN ABANDONED THE LONGSTANDING FASHION OF BLACKENING THEIR TEETH AND TOOK TO WEARING GIBSON GIRLINSPIRED POMPADOURS INFATUATION WITH WESTERN MODES WAS SO STRONG THAT EMPRESS HARUKO PROCLAIMED THE KIMONO A DEFORMITY AND ABERRATION ARISING OUT OF JAPAN'S SINIFIED IMPERIAL PAST MS DALBY GOES ON EVEN THE EMPEROR ISSUED A CLOTHING REFORM DISAVOWING THE COURTLY ROBES AS REMARKABLY ESSENTIALLY NONJAPANESE ASIA'S NEW IMPERIALISTS POSED FOR PHOTOGRAPHS IN TOP HATS AND TAILS THE EMPEROR DONNED BROCADEDRENCHED AND BEMEDALED MILITARY UNIFORMS FASHIONED AFTER THE FRENCH AND THE NATION'S ARMY FOLLOWED SUIT THE PRICE OF THIS HEADLONG INFATUATION WAS A PERMANENT CRISIS OF IDENTITY THE KIMONO REASSERTED ITSELF MOSTLY AMONG WOMEN AND AS A SIGN OF TRADITION RATHER THAN FASHION AND AS MS DALBY MAKES CLEAR THE TENSIONS BETWEEN EAST AND WEST OLD AND NEW WERE PARTLY RELIEVED BY THIS DIVISION OF CULTURAL LABOR AS IT WERE ACCORDING TO WHICH WOMEN TOOK ON THE ROLE OF CONSERVATORS OF TRADITION BY 1895 THERE WERE PLENTY OF JAPANESE WHO HAD GROWN DISILLUSIONED WITH THE WEST AND NATIONALISM FUELED BY THE SINOJAPANESE WAR WAS ON THE ASCENDANCY SCHOOL GIRLS WERE REWRAPPED IN KIMONOS TODAY THE KIMONO IS MOSTLY DRAGGED OUT FOR WEDDINGS AND FUNERALS AND MOSTLY BY WOMEN THERE ARE SOME HOWEVER WHO ARE FED UP WITH THIS CURATORIAL ROLE EARLIER THIS YEAR AROUND THE TIME THE BRAINY CAREER WOMAN MASAKO OWADA AGREED TO MARRY CROWN PRINCE NARUHITO SOME OF THE AMBIVALENCE INDEED ANTAGONISM INSPIRED BY THE KIMONO CAME TO THE SURFACE YOKO TAJIMA A WELLKNOWN FEMINIST AND PROFESSOR RAILED AT THE TV IMAGES OF THE CROWN PRINCESSTOBE STANDING IN KIMONO WITH DOWNCAST EYES AND HEAD COCKED TO ONE SIDE WEARING A KIMONO SAID MS TAJIMA IS NOT MY VERSION OF BEING A JAPANESE WOMAN IT REPRESENTS EVERYTHING I HATE THE DEMURE ONESTEPBEHIND ROLE UNLIKE MS TAJIMA OR ANY OTHER JAPANESE FOR THAT MATTER MS DALBY DID NOT HAVE TO CHOOSE WHETHER TO LOVE OR LOATHE HER SUBJECT INSTEAD SHE OFFERS A TOUR OF THE CULTURAL COLLISIONS THAT HAVE BECOME PART OF THE FABRIC NOT JUST OF THE KIMONO BUT OF MODERN JAPAN IT IS A TOUR WELL WORTH TAKING MS SCOTT IS A TOKYOBASED WRITER 9401260035 940126 USNORTH KOREA TENSIONS SEEN RISING MURTHA SAYS WASHINGTON AN INFLUENTIAL MEMBER OF CONGRESS PREDICTED THAT TENSIONS BETWEEN THE US AND NORTH KOREA OVER INSPECTIONS OF THE ASIAN NATION'S NUCLEAR PROGRAM WILL ESCALATE THIS YEAR I BELIEVE THAT SOMETIME THIS YEAR YOU WILL SEE A CONFRONTATION THAT HOPEFULLY WILL END PEACEFULLY AND WE WILL PREVAIL SAID REP JOHN MURTHA CHAIRMAN OF THE HOUSE DEFENSE APPROPRIATIONS SUBCOMMITTEE THE FIRST TEST OF THIS ADMINISTRATION IS GOING TO BE KOREA THE PENNSYLVANIA DEMOCRAT TOLD REPORTERS AT A BREAKFAST MEETING HAITI SOMALIA AND BOSNIA ARE NOTHING COMPARED TO KOREA MR MURTHA SAID HE IS WORRIED THAT THE NORTH KOREANS HAVE BEEN USING THEIR NEGOTIATIONS WITH THE US AS A DELAYING TACTIC WHILE THEY DEVELOP NUCLEAR WEAPONS THAT'S VERY DANGEROUS BECAUSE IT COULD LEAD TO WORLDWIDE PROLIFERATION MR MURTHA SAID 9401260034 940126 WHAT'S NEWS WORLDWIDE CLINTON PLEDGED TO PUSH LEGISLATION ON CRIME AND WELFARE REFORM IN HIS STATE OF THE UNION ADDRESS THE PRESIDENT SAID HE WOULD GIVE THOSE TWO ISSUES NEAREQUAL BILLING WITH HIS TOP PRIORITY HEALTHCARE REFORM HE ALSO ISSUED HIS FIRST VETO THREAT SAYING HE WOULD KILL ANY HEALTHCARE BILL THAT DOESN'T PROVIDE COVERAGE FOR EVERY AMERICAN THE SPEECH WAS A MARKED DEPARTURE FOR CLINTON WHO HAS FOCUSED ON ECONOMIC ISSUES PARTICULARLY REDUCING THE DEFICIT AND EXPANDING TRADE LAST NIGHT IN EFFECT HE DECLARED VICTORY ON THE ECONOMIC FRONT AND PREPARED TO MOVE ON THE PRESIDENT SIGNALED THAT HE WANTS TO SET A NEW SOCIALLY CONSCIOUS TONE FOR HIS ADMINISTRATION HE SPOKE OF THE NEED FOR FAMILY VALUES AND VOWED TO PRESS FOR AN END TO VIOLENCE ON THE STREETS THE PRESIDENT WILL REQUEST AN ADDITIONAL 66 BILLION FOR EARTHQUAKEHIT CALIFORNIA CLINTON WILL ASK CONGRESS TO APPROVE THE EMERGENCY FEDERAL ASSISTANCE FOR SOUTHERN CALIFORNIA ON TOP OF 900 MILLION ALREADY RELEASED FROM CONTINGENCY FUNDS WHITE HOUSE BUDGET DIRECTOR PANETTA ANNOUNCED PRIME MINISTER CHERNOMYRDIN UNVEILED A RUSSIAN FARM SUBSIDY PROGRAM THAT COULD COST HUNDREDS OF MILLIONS OF DOLLARS IN THE NEXT FEW YEARS THE INTERFAX NEWS AGENCY SAID SEPARATELY THE HEAD OF THE HOUSE FOREIGN AFFAIRS PANEL HAMILTON WARNED THE CLINTON ADMINISTRATION HE MAY OPPOSE FURTHER MOSCOW AID UNLESS IT CURBS INFLATION MEXICO'S PRESIDENT FLEW TO THE SOUTHERN STATE OF CHIAPAS FOR HIS FIRST VISIT SINCE A JAN 1 UPRISING BY GUERRILLAS SEEKING IMPROVED SOCIAL CONDITIONS SALINAS TOLD REPRESENTATIVES OF 280 INDIGENOUS GROUPS HE WOULD WORK FOR PEACE AND ECONOMIC REFORMS THE ENERGY DEPARTMENT IS CONDUCTING MORE THAN 200 RADIATION EXPERIMENTS INVOLVING HUMANS BUT IS FOLLOWING STRICT ETHICAL PROCEDURES AND OBTAINING PROPER CONSENT ACCORDING TO ENERGY SECRETARY O'LEARY SHE SAID CLINTON SOON WILL DIRECT ALL FEDERAL AGENCIES TO IMMEDIATELY HALT ANY EXPERIMENTS WHERE CONSENT MIGHT BE IN QUESTION FRANCE RENEWED ITS PLEA FOR DIPLOMATIC ACTION TO PERSUADE BOSNIA'S FACTIONS TO ACCEPT A NEGOTIATED SETTLEMENT DESPITE AN APPARENT REBUFF BY THE US AT THE UN RUSSIA CALLED FOR AN URGENT SECURITY COUNCIL MEETING UN OBSERVERS WERE TRYING TO REACH A MUSLIM VILLAGE HERE TO INVESTIGATE REPORTS OF A MASSACRE BY CROATS AGRICULTURE SECRETARY ESPY IS EXPECTED TO ANNOUNCE FOODSAFETY PROPOSALS TODAY THAT CALL FOR A TOUGHER MEATINSPECTION SYSTEM THAT RELIES MORE ON SCIENTIFIC TESTING AND LESS ON VISUAL EXAMINATION OF BEEF AIDES SAID HE WOULD OUTLINE PLANS FOR CHANGING THE INSPECTION SYSTEM AT ALL LEVELS POP STAR MICHAEL JACKSON SETTLED A LAWSUIT THAT SAID HE MOLESTED A YOUNG BOY TERMS OF THE SETTLEMENT IN WHICH JACKSON DIDN'T ADMIT GUILT ARE CONFIDENTIAL ATTORNEYS FOR BOTH SIDES SAID IN SANTA MONICA CALIF VARIOUS REPORTS SAID THE SETTLEMENT IN THE SUIT FILED IN SEPTEMBER AGAINST THE 35YEAROLD SINGER WAS AT LEAST 10 MILLION AN ISRAELI DELEGATION ARRIVED IN CAIRO FOR AN UNEXPECTED RESUMPTION OF NEGOTIATIONS WITH PLO OFFICIALS ABOUT PLANS FOR IMPLEMENTING PALESTINIAN SELFRULE SEPARATELY LEBANON'S PRIME MINISTER SAID AN ISRAELI WITHDRAWAL FROM LEBANON WAS A PRECONDITION FOR PEACE IN THE AREA A WHITECOLLAR CRIMINAL CAN'T AVOID JAIL JUST BECAUSE HIS INCARCERATION WOULD DESTROY HIS BUSINESS AND PUT PEOPLE OUT OF WORK A US APPEALS COURT HAS RULED THE RULING OVERTURNS A DECISION BY A PITTSBURGH JUDGE LAST YEAR TO PUT A BUSINESSMAN ON PROBATION RATHER THAN IMPRISON HIM FOR MAIL FRAUD AND FALSE TAX FILINGS OPPOSITION LAWMAKERS AGREED TO MEET TODAY WITH MEMBERS OF JAPAN'S RULING COALITION IN AN EFFORT TO END A STALEMATE OVER POLITICAL REFORM HOWEVER THE MEETING ISN'T EXPECTED TO BE CONCLUSIVE PRIME MINISTER HOSOKAWA IS STRUGGLING TO TURN HIS PROPOSED REFORMS INTO LAW BEFORE PARLIAMENT'S CURRENT SESSION ENDS SATURDAY TIME IS RUNNING OUT FOR NORTH KOREA TO FOLLOW THROUGH ON ITS PROMISE TO ALLOW NUCLEAR INSPECTIONS A CLINTON ADMINISTRATION OFFICIAL SAID WITH A MEETING OF THE INTERNATIONAL ATOMIC ENERGY AGENCY SCHEDULED FOR NEXT MONTH THE US ALREADY IS MAKING PLANS TO SEEK UN SANCTIONS IF PYONGYANGIAEA TALKS REMAIN DEADLOCKED HE SAID 9401260033 940126 TEXAS JOURNAL LETTERS TO THE EDITOR TWO VIEWS OF TEXAS' ELECTRICAL RATES YOUR JAN 12 ARTICLE WHY THE INCREASE HOW DO WE COMPARE ANSWERING QUESTIONS ABOUT ELECTRIC RATES CONTAINED SOME STATEMENTS THAT PRESENT AN UNFAIR PICTURE OF ELECTRIC UTILITIES IN TEXAS THE ARTICLE STATES THAT TU ELECTRIC RECEIVED ALL OF ITS REQUESTED RATE INCREASE IN 1991 ALTHOUGH THE COMPANY WAS GRANTED THE REQUESTED 102 INCREASE IN REVENUE THE PUBLIC UTILITY COMMISSION DISALLOWED 138 BILLION IN COSTS ASSOCIATED WITH THE COMANCHE PEAK NUCLEAR PLANT AND ANOTHER 56 MILLION IN OTHER COSTS THOSE DISALLOWANCES WERE WRITTEN OFF THE BOOKS AS A LOSS TO SHAREHOLDERS WHO WILL NEVER EARN A RETURN ON THAT INVESTMENT REGARDING THE ARTICLE'S CONTENTION THAT CUSTOMERS IN MOST OF THE STATE'S LARGE INVESTOROWNED UTILITIES PAY HIGHER RATES THAN NEARLY EVERY OTHER MAJOR CITY IN THE COUNTRY EVEN WITH THE ENTIRE 153 INCREASE IMPLEMENTED UNDER BOND BY TU ELECTRIC IN AUGUST TU ELECTRIC'S RATES WERE STILL ABOUT 5 BELOW THE AVERAGE RATES OF THE NATION'S 25 LARGEST CITIES I TAKE ISSUE WITH THE ASSERTION THAT NATIONAL COMPARISONS ARE SKEWED BY HIGH RATES IN NEW YORK AND BOSTON COMPARE CHARGES FOR THE USE OF 1000 KILOWATTHOURS PER MONTH OVER 1993 CLOSE TO THE AVERAGE USAGE IN THE DALLAS AREA AND YOU'LL FIND THAT ELECTRICITY COSTS HERE WERE NOT ONLY LOWER THAN THOSE IN NEW YORK AND BOSTON BUT ALSO LOWER THAN BALTIMORE HOUSTON EL PASO LOS ANGELES DETROIT CHICAGO PHOENIX CLEVELAND SAN DIEGO SAN JOSE SAN FRANCISCO AND PHILADELPHIA COMPARING THE ELECTRIC BILLS AS OPPOSED TO THE VARIOUS CHARGES FOR THE SAME USAGE IS NOT VALID IN MOST CASES THAT IS MERELY A MEASURE OF THE NEED FOR AIR CONDITIONING IN A GEOGRAPHIC AREA INSTEAD OF THE EFFICIENCY WITH WHICH THE LOCAL UTILITY IS SERVING ITS CUSTOMERS MICHAEL TOTTY DOES AN INJUSTICE TO THE CITIZENS OF EL PASO WHEN HE WRITES ABOUT OUR AVERAGE AUGUST UTILITY BILLS BEING LOW BECAUSE OF THE AREA'S MILD CLIMATE EL PASO IS THE FOURTHPOOREST CITY IN THE US THE AVERAGE BILL IS LOW BECAUSE CONSUMERS ARE FRUGAL MOST PEOPLE WOULD AGREE THAT 100DEGREE DAYS IN THE SUMMER AND 28DEGREE NIGHTS IN THE WINTER DO NOT FIT THE MILD WEATHER CATEGORY MR TOTTY GOES ON TO BLAME THE HIGH RATES ON EL PASO ELECTRIC'S EXPENSIVE INVESTMENT IN THE PALO VERDE NUCLEARPOWER PLANT WITH NO MENTION OF THEIR SOUR INVESTMENTS IN HOTELS AND OTHER COMMODITIES THE BIDDING WAR FOR TAKING OVER EL PASO ELECTRIC WHICH HAS BEEN WON BY CENTRAL & SOUTH WEST CORP HAS RESULTED IN AN EXORBITANT PRICE AS THINGS STAND NOW CREDITORS SHOULD GET BACK AROUND 95 CENTS TO THE DOLLAR TO SAY WE ARE BEING HURT IS AN UNDERSTATEMENT THE NEW COMPANY IS ASKING FOR HUGE RATE INCREASES TO COVER ITS OVERBIDDING SO BECAUSE EL PASOANS ARE FRUGAL AND TRY TO CONSERVE ENERGY BECAUSE OF THE HIGH RATES THEY WILL BE REWARDED WITH HUGE RATE INCREASES WE CAN ONLY HOPE THAT CENTRAL & SOUTHWEST WILL DECIDE THAT ITS OFFER WAS TOO HIGH RETRENCH COME BACK WITH A SANE OFFER AND THUS HOLD THE LINE ON THE MOST EXPENSIVE ELECTRIC RATES IN TEXAS TEXAS JOURNAL WELCOMES YOUR COMMENTS BY MAIL PHONE OR FAX LETTERS SHOULD BE ADDRESSED TO MICHAEL ALLEN EDITOR TEXAS JOURNAL 1233 REGAL ROW DALLAS TEXAS 75247 THE PHONE NUMBER IS 2149517010 THE FAX NUMBER IS 2149517019 9401260032 940126 HEALTH CARE REFORM IS NO CURE FOR DEFICIT PETE V DOMENICI AS WE IN CONGRESS EXAMINE PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN IN THE WAKE OF HIS STATE OF THE UNION MESSAGE WE WOULD DO WELL TO RECALL WHAT HE TOLD THE NATION ABOUT ITS FISCAL HEALTH LAST JULY HEALTH CARE REFORM IS KEY TO REDUCING THE FEDERAL DEFICIT AND KEEPING IT DOWN IN FACT THROUGHOUT LAST YEAR'S BUDGET DEBATE THE PRESIDENT MADE IT CLEAR THAT HE WAS PROPOSING A TWOPRONGED ATTACK ON OUR NATION'S DEFICIT THE FIRST STEP HAD BEEN PRESENTED IN HIS BUDGET PLAN PRIMARILY INCREASED TAXES THE SECOND STEP WOULD COME IN HEALTH CARE REFORM WHICH WOULD ONCE AND FOR ALL CONTROL FEDERAL HEALTH CARE ENTITLEMENTS AND THEREFORE THE FEDERAL DEFICIT WE NEED TO BRING THE DEFICIT DOWN TO ZERO PRESIDENT CLINTON SAID TO DO THAT WE HAVE TO PASS HEALTH CARE REFORM BY THE TIME THE PRESIDENT'S HEALTH CARE PROPOSAL REACHED CONGRESS IN LATE OCTOBER HOWEVER MONEY SAVED FROM REFORMING FEDERAL HEALTH CARE PROGRAMS WAS BEING EARMARKED NOT FOR DEFICIT REDUCTION BUT FOR EXTENDING COVERAGE TO THE UNINSURED THE ADMINISTRATION'S PLAN IS NOT UNIQUE IN USING WHATEVER SAVINGS ARE ACHIEVED VIA HEALTH CARE REFORM TO EXTEND COVERAGE THIS IS TRUE OF OTHER REFORM PLANS AS WELL INCLUDING THE GOP TASK FORCE PROPOSAL I HAVE COSPONSORED AN IMPORTANT DISTINCTION HOWEVER IS THAT THE GOP TASK FORCE PLAN AT LEAST RECOGNIZES THAT WE CANNOT ADD TO THE CURRENT DEFICIT WITH UNCONTROLLED AND OPENENDED HEALTH CARE ENTITLEMENTS IT PLACES A SPENDING LIMIT ON ANY NEW HEALTH PROGRAMS SO THAT THEY CANNOT EXCEED THE SAVINGS ACHIEVED FROM CONTROLLING CURRENT HEALTH PROGRAM OUTLAYS NO SUCH MECHANISM EXISTS IN THE ADMINISTRATION'S BILL CONSIDER THE CONSEQUENCES THE DEFICIT USING THE CONGRESSIONAL BUDGET OFFICE'S NUMBERS WILL DIP SLIGHTLY TO BELOW 200 BILLION IN FOUR YEARS THEN IT BEGINS RISING AGAIN WITHOUT THE ADMINISTRATION'S 300 BILLION IN DEFICIT REDUCTION FROM HEALTH CARE REFORM AS PROMISED BACK IN JULY THE DEFICIT WILL ONCE AGAIN REACH NEARLY 360 BILLION WITHIN SEVEN OR EIGHT YEARS IN OTHER WORDS MOST OF THE DEFICIT REDUCTION RESULTING FROM THE 255 BILLION IN TAXES AND USER FEES AND FURTHER CUTS IN DEFENSE SPENDING ADOPTED LAST YEAR WILL STILL NOT ELIMINATE THE LONGTERM DEFICIT PROJECTIONS FAILING TO CONTROL ENTITLEMENT SPENDING DURING LAST YEAR'S BUDGET DELIBERATIONS PARTICULARLY THE HEALTH CARE ENTITLEMENT PROGRAMS WILL GO DOWN IN HISTORY AS THE GREAT MISSED OPPORTUNITY OF THE CLINTON ADMINISTRATION HOW THEN CAN MR CLINTON MAKE GOOD ON HIS STATED DESIRE TO TAKE THE DEFICIT DOWN TO ZERO THE FIRST OPTION OBVIOUSLY IS MORE TAXES BUT ECONOMIC NEGATIVES ASIDE THERE CLEARLY IS LITTLE POLITICAL SUPPORT FOR MORE TAXES SOME WILL ARGUE THAT WE CAN CUT MORE OUT OF THE DEFENSE BUDGET BUT THE DEFENSE BUDGET ALREADY ON A DOWNWARD PATH SINCE 1985 WILL BE REDUCED FURTHER UNDER THE CLINTON DEFENSE PLAN IN JUST A SHORT FOUR YEARS WE WILL BE DEVOTING LESS THAN 32 OF OUR GROSS DOMESTIC PRODUCT TO NATIONAL SECURITY A LEVEL NOT SEEN SINCE 1940 HOW ABOUT MORE CUTS IN OTHER DOMESTIC PROGRAMS NOT EASY JUST TO STAY WITHIN THE SPENDING LIMITS ESTABLISHED IN THE BUDGET DISCRETIONARY SPENDING WILL HAVE TO BE REDUCED NEARLY 20 BILLION OVER THE NEXT FIVE YEARS NOT COUNTING AT LEAST 25 BILLION FOR THE PRESIDENT'S INVESTMENT INITIATIVES HE CLAIMS HE DIDN'T GET LAST YEAR BOB REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE RECENTLY OBSERVED ALL THE NUMBERS THAT WILL BE GENERATED FOR THE HEALTH CARE REFORM DEBATE WILL BE HIGHLY UNCERTAIN AND SHOULD BE TREATED ACCORDINGLY UNFORTUNATELY HEALTH CARE ESTIMATES IN THE PAST HAVE UNDERESTIMATED THE COSTS AND OVERESTIMATE THE SAVINGS TWO EXAMPLES WHEN THE MEDICARE HOSPITAL INSURANCE PROGRAM WAS ADOPTED IN 1965 IT WAS ESTIMATED TO COST ABOUT 9 BILLION IN 1990 THE ACTUAL COST WAS 67 BILLION WHEN THE 1990 BUDGET AGREEMENT WAS ADOPTED WE THOUGHT WE HAD CUT THE COST OF FEDERAL HEALTH PROGRAMS BY MORE THAN 42 BILLION SINCE THEN TECHNICAL REASONS HAVE MORE THAN WIPED OUT ANY REAL SAVINGS IF WE REPEAT HISTORY AND OUR ESTIMATES ARE OFF BY SIMILAR MAGNITUDES HOLD ON INSTEAD OF HELPING TO REDUCE THE DEFICIT AS THE ADMINISTRATION STILL ASSERTS THE WHITE HOUSE PLAN COULD INCREASE THE DEFICIT BY 400 BILLION NATIONAL HEALTH CARE EXPENDITURES COULD BE MORE THAN 19 OF GDP THEREFORE WE WOULD GO THROUGH A TREMENDOUS SHAKEUP OF THE HEALTH CARE SYSTEM NOT REDUCE THE FEDERAL DEFICIT AND NOT CHANGE THE PROPORTION OF OUR NATIONAL WEALTH DEVOTED TO HEALTH CARE IT WOULD BEHOOVE US ALL REGARDLESS OF POLITICAL AFFILIATION TO BE HUMBLE IN OUR ABILITY TO PREDICT THE FISCAL IMPACT OF ANY PROPOSAL LET US HOPE THAT THE ADMINISTRATION IN AN EFFORT TO GUARANTEE HEALTH SECURITY TO ALL AMERICANS THAT CAN NEVER BE TAKEN AWAY DOES NOT IGNORE OUR COUNTRY'S ECONOMIC SECURITY THREATENED BY INCREASING FEDERAL DEBT SEN DOMENICI R NM IS RANKING MINORITY MEMBER OF THE BUDGET COMMITTEE 9401260031 940126 HEARD ON THE STREET AMERICAN EXPRESS'S SPINOFF PLAN DRAWS SPLIT VIEW FROM ANALYSTS BIG INVESTORS BY SUSAN PULLIAM AND ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS HAS A CHARGE CARD AMERICAN EXPRESS HAS A SECURITIES BUSINESS SPLIT THEM APART AND WHAT DO YOU GET A SPLIT VIEW ON WALL STREET WHERE ANALYSTS ARE CHURNING OUT BUY OPINIONS ON AMERICAN EXPRESS BUT A FEW BIG INVESTORS SAY THE BIG GAINS IN THE STOCK ARE ALREADY OVER NEWS OF THE COMPANY'S PLANNED SPINOFF OF LEHMAN BROTHERS PUSHED UP AMERICAN EXPRESS STOCK 1 1/4 YESTERDAY TO 32 3/4 VOLUME WAS HEAVY AT 71 MILLION SHARES SEVERAL ANALYSTS RUSHED TO UPGRADE THE STOCK BUT AS IS THE CASE WITH MANY CORPORATE TURNAROUNDS INVESTORS WHO ARE ARRIVING LATE MAY FIND THE BUFFET PICKED OVER NOW THAT AMERICAN EXPRESS SHARES HAVE RISEN FROM AROUND 25 AT THE BEGINNING OF 1993 SOME BIG INVESTORS SAY THE EASY MONEY HAS BEEN MADE MOREOVER THEY SAY THE PARENT COMPANY FACES A TOUGH BATTLE TRYING TO RESTORE GROWTH IN ITS CHARGECARD BUSINESS I'M NOT ADMIRING OF AMERICAN EXPRESS'S POSITION DOMESTICALLY SAYS JOHN NEFF MANAGER OF VANGUARD GROUP'S WINDSOR FUND EVEN CITICORP WHICH HAS AN ATTRACTIVE CARD IS NOW GIVING ITS CARD AWAY GRATIS HE POINTS OUT AFTER THE INITIAL EXCITEMENT WEARS OFF INVESTORS MAY ALSO REALIZE THAT THE SPINOFF MAY NOT BE SUCH GREAT SHAKES EITHER WE VIEW THE TRANSACTION AS NEUTRAL FOR AMERICAN EXPRESS SHAREHOLDERS JOAN SOLOTAR AN ANALYST AT DONALDSON LUFKIN & JENRETTE SAID YESTERDAY IN COMMENTS TO CLIENTS SHE ADDED THE SUM OF THE PARTS WILL NOT BE GREATER THAN THE WHOLE TO BE SURE FEW LARGE INVESTORS THINK AMERICAN EXPRESS'S STOCK IS ABOUT TO TAKE A TUMBLE INDEED INVESTORS WHO BOUGHT AMERICAN EXPRESS FOR ITS TRAVELSERVICES APPEAL HAVE LONG SEEN THE SECURITIES BUSINESS AS AN ANNOYINGLY UNPREDICTABLE APPENDAGE WHEN THE SPINOFF IS COMPLETED AND LEHMAN SHARES ARE DISTRIBUTED AS A DIVIDEND SOMETIME IN LATE APRIL OR MAY SUCH HOLDERS WILL BE ABLE TO BREATHE A LOT EASIER AND NOW THAT HARVEY GOLUB IS HOLDING THE REINS SOME BIG INVESTORS BELIEVE AMERICAN EXPRESS WILL BE ABLE TO REBUILD ITS FRANCHISE THAT PROCESS COULD BE SLOW GOING HOWEVER THE TURNAROUND CAME FROM 20 AT THE END OF 1992 TO 32 SAYS ROBERT TORRAY A MONEY MANAGER WHO NOTES THAT AMERICAN EXPRESS IS ONE OF HIS LARGEST HOLDINGS MR TORRAY ISN'T BAILING OUT BUT NEITHER IS HE BUYING MORE SHARES NOW FROM HERE ON UP THE COMPANY IS GOING TO HAVE TO PERFORM HE SAYS THE BULLISH CASE GOES LIKE THIS AMERICAN EXPRESS STOCK HAS BEEN TRADING AT A MODEST MULTIPLE OF AROUND 10 TIMES EARNINGS ESTIMATES FOR 1994 THAT'S WELL BELOW THE LOWTEENS MULTIPLES OF COMPETITORS SUCH AS AS ADVANTA AND FIRST USA NOW WITH LEHMAN OUT OF ITS HAIR AND IMPROVEMENTS SHOWING UP IN THE FOURTHQUARTER CHARGECARD BUSINESS INVESTORS' VIEW OF THE STOCK MAY CHANGE FOR THE FIRST TIME SINCE THE FOURTH QUARTER OF 1991 THE COMPANY HAS REPORTED THAT THE NUMBER OF CARDS OUTSTANDING INCREASED ON A YEAROVERYEAR BASIS NET INCOME OF ITS TRAVEL RELATED SERVICES UNIT ROSE TO 213 MILLION UP FROM 181 MILLION IN THE YEARBEFORE QUARTER INDEED NED DAVIS AN ANALYST AT OPPENHEIMER & CO TOLD CLIENTS AMERICAN EXPRESS COULD CLIMB TO 36 BASED ON A MULTIPLE OF 12 TIMES HIS EARNINGS ESTIMATE FOR 1994 THAT DOESN'T EVEN INCLUDE THE LEHMAN DIVIDEND THAT SHAREHOLDERS WILL RECEIVE IN APRIL WHICH HE SAYS HAS A VALUE OF AROUND 5 PER AMERICAN EXPRESS SHARE THE TROUBLE IS IT'S GOING TO BE A LONG HAUL FOR MR GOLUB AMERICAN EXPRESS'S CHAIRMAN FOR STARTERS SAYS WINDSOR'S MR NEFF THEY CHARGE MERCHANTS MORE THAT'S TOUGH SMOKE THESE DAYS WE DON'T BELIEVE THE STREET IS ANTICIPATING AN APPROACHING SLOWDOWN IN FIRSTQUARTER EARNINGS SAYS DLJ'S MS SOLOTAR FURTHERMORE SHE SAYS THE CORPORATEPURCHASING CARD WILL BE SLIGHTLY ADDITIVE TO EARNINGS BEGINNING IN 1995 BUT WILL NOT BE SIGNIFICANT ENOUGH TO CHANGE OUR OUTLOOK FOR THE COMPANY ONE QUESTION FOR AMERICAN EXPRESS SHAREHOLDERS AS THEY WEIGH WHETHER TO HANG ON TO SHARES OF LEHMAN THE INVESTMENT BANK ARE THEY GETTING IN ON THE GROUND FLOOR OF A GOLD MINE OR GETTING SADDLED WITH THE PARENT'S RISKIEST ASSET LEHMAN FOUNDED IN 1850 AND ONE OF WALL STREET'S TOPRANKED INVESTMENT BANKS BECAME PART OF AMERICAN EXPRESS AND ITS SHEARSON BROKERAGE UNIT IN 1984 THE MERGER WAS ROCKY FROM THE BEGINNING A LEHMAN PUBLIC OFFERING HAD BEEN EXPECTED FOR MONTHS EVEN BEFORE SHEARSON WAS ACQUIRED IN JULY BY SMITH BARNEY A UNIT OF PRIMERICA WHICH MERGED WITH TRAVELERS AND TOOK THE TRAVELERS NAME BUT AMERICAN EXPRESS RAISED EYEBROWS WITH THE DECISION TO SPIN OFF LEHMAN A MOVE REMINISCENT OF SEARS ROEBUCK & CO'S 1993 SPINOFF OF DEAN WITTER DISCOVER SOME ANALYSTS ARGUE THAT AN INITIAL PUBLIC OFFERING OF LEHMAN WOULD HAVE BEEN A BETTER MOVE AMERICAN EXPRESS DISAGREES AMERICAN EXPRESS STARTLED ANALYSTS WITH ITS PLANNED CAPITAL INFUSION OF 109 BILLION INTO LEHMAN THE AMOUNT IS 500 MILLION MORE THAN THE STREET EXPECTED BASED UPON REMARKS BY AMERICAN EXPRESS EXECUTIVES LAST SUMMER DLJ'S MS SOLOTAR SAID THE ADDITIONAL CAPITAL ONLY UNDERLINES THE HURDLES FACED BY LEHMAN COMPARED WITH ITS COMPETITORS SOME OF WHICH ARE BETTER CAPITALIZED AND HAVE HIGHER RETURNS ON EQUITY THE LARGE CAPITAL INFUSION WAS NEEDED BECAUSE LEHMAN'S EQUITYTOASSET RATIO WAS DRASTICALLY BELOW THAT OF ITS COMPETITORS SAYS MS SOLOTAR IN ITS FAVOR LEHMAN HAS BEEN AMASSING CLOUT ON WALL STREET FROM 1985 THROUGH 1990 SHEARSON LEHMAN HAD BEEN MIRED AT FIFTH TO EIGHTH PLACE IN WALL STREET'S CORPORATE RANKINGS LEADING UNDERWRITINGS OF ROUGHLY 22 BILLION OF STOCK AND DEBT COMBINED EACH YEAR ON AVERAGE BUT LEHMAN SOLO SOARED TO THIRD PLACE IN 1991 IT HAS STAYED THERE AND IN 1993 UNDERWROTE 1156 BILLION OF NEW OFFERINGS ACCORDING TO SECURITIES DATA CO SKEPTICS SAY LEHMAN IS STILL UNDERCAPITALIZED RELATIVE TO MAJOR COMPETITORS ESPECIALLY GIVEN THE RISKY MARKETS IN WHICH IT WANTS TO PARTICIPATE ITS RETURN ON EQUITY AFTER THE SPINOFF WILL BE ABOUT 12 TWOTHIRDS OF THE INDUSTRY AVERAGE AND THERE'S A SENSE THAT IF THE COMPANY HAD GONE PUBLIC IN EARLY FALL WHEN BROKERAGE STOCKS WERE PEAKING AT RECORD LEVELS AND THE WALL STREET BOOM WAS GOING GREAT GUNS LEHMAN SHARES SIMPLY WOULD HAVE HAD MORE STEAM LEFT IN THEM RICHARD FULD JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEHMAN DISPUTES THAT THE WINDOW OF OPPORTUNITY HAS CLOSED I BELIEVE THAT THE INDUSTRY IS JUST SCRATCHING AT THE SURFACE YOU HAVE A WHOLE WORLD JUST COMING OUT OF RECESSION OUT THERE BUT THE SPINOFF STRUCTURE HOLDS A BUILTIN THREAT OF PRICEDEPRESSING STOCK SALES BOTH BY AMERICAN EXPRESS SHAREHOLDERS WHO DON'T WANT TO STAY IN LEHMAN AND BY LEHMAN'S OWN SENIOR MANAGEMENT THE MANAGERS WERE PAID MUCH OF THEIR 1993 BONUSES IN A 60 MILLION INTERNAL OFFERING OF LEHMAN PHANTOM SHARES AND CAN CASH OUT THE FIRST THIRD OF THEIR SHARES ONE YEAR AFTER THE FIRM GOES PUBLIC ANALYSTS SAY AMERICAN EXPRESS'S PLANNED CAPITAL INFUSION IS HIGHER THAN EXPECTED BECAUSE EARLIER ESTIMATES OF WHAT IT WOULD TAKE TO GARNER LEHMAN BROTHERS A SINGLEA CREDIT RATING WERE UNREALISTICALLY LOW I'M NOT SURE WHERE THEY GOT THOSE NUMBERS SAYS JAKE NEWMAN ANALYST AT STANDARD & POOR'S CORP SUBSTANTIAL ADDITIONAL CAPITAL WAS ALWAYS NEEDED TO OFFSET THE RISKS OF THE BUSINESS HE SAID UNDERWRITING VOLUMES AND SECURITIESMARKET TRADING VOLUMES FLUCTUATE THERE'S INVENTORY RISK MEANWHILE LEHMAN SEEMS POISED FOR SOME AGGRESSIVE MOVES IT IS MOVING TO SET UP A TRIPLEARATED DERIVATIVES SUBSIDIARY A BIG BUSINESSGETTER AT SOME FIRMS A COSTCUTTING PROGRAM MOVED 1400 EMPLOYEES TO JERSEY CITY NJ OFFICES TRANSFERRED OTHERS TO ITS SWAPS AND INTERNATIONAL DIVISIONS AND LEHMAN INSIDERS EXPECT SOME DOWNSIZING OF STAFF STILL UP IN THE AIR IS THE POTENTIAL VALUATION OF LEHMAN ANALYSTS SAY IT MIGHT BE VALUED AT A MULTIPLE OF SEVEN TO NINE TIMES 1993 OPERATING EARNINGS OF 376 MILLION UNNERVING DIVERGENCE FOR TWO DAYS LAST WEEK THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT A 52WEEK HIGH WHILE THE DOW JONES UTILITY AVERAGE CLOSED AT A 52WEEK LOW ACCORDING TO JAMES STACK WRITER OF THE INVESTECH MARKET ANALYST NEWSLETTER IN WHITEFISH MONT THERE WAS NO PRIOR DAY IN MARKET HISTORY WHEN THAT HAPPENED BUT THERE WERE THREE PREVIOUS TIMES WHEN THE INDUSTRIALS HIT A HIGH THE SAME WEEK THE UTILITIES HIT A LOW IN EACH CASE THE STOCK MARKET PLUNGED AFTERWARD IN DECEMBER 1965 THE WARNING SIGNAL SOUNDED ONE MONTH BEFORE THE BEAR MARKET OF 1966 IN MAY 1972 THE SIGNAL WAS A FEW MONTHS EARLY BUT THE BEAR MARKET OF 197374 WAS THE WORST IN 30 YEARS THE ONLY OTHER TIME THE SIGNAL HAS SOUNDED WAS IN JULY 1990 THE SAME MONTH THE DOW INDUSTRIALS BEGAN A 20 SLIDE A SLIDE IN THE UTILITY AVERAGE OFTEN PRESAGES A RISE IN INTEREST RATES AND RISING RATES CAN BE POISON TO STOCKS GREAT SCOTT SCOTT PAPER CO IS EXPECTED TO ANNOUNCE A RESTRUCTURING CHARGE AGAINST EARNINGS THIS MORNING AND WALL STREET IS WATCHING CLOSELY BRUCE KIRK OF SG WARBURG NOTES THAT PHILLIP E LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PHILADELPHIA COMPANY PLANS TO STEP DOWN THIS SPRING MAKING THE TIME RIPE FOR SOME REAL SURGERY MR KIRK LOOKS FOR A MINIMUM PRETAX CHARGE OF 200 MILLION SOME ANALYSTS SAY SCOTT MAY BE CONSIDERING SELLING OR SPINNING OFF ITS SD WARREN SPECIALTYPAPERS BUSINESS THE COMPANY DECLINED TO COMMENT IN OCTOBER IT SAID A SIGNIFICANT CHARGE WAS LIKELY BECAUSE OF COMPETITIVE PRESSURES SINCE THEN THE STOCK BUOYED BY RESTRUCTURING HOPES IS UP FROM ABOUT 36 TO YESTERDAY'S 43 3/8 DOWN 1/8 SOME ANALYSTS SAY THE STOCK COULD GET A BOOST IF THE RESTRUCTURING ADDRESSES SPECIFIC PROBLEM AREAS SUCH AS OVERCAPACITY IN SPECIALTY PAPERS OTHER ANALYSTS SAY A SPINOFF OR PLAN TO SELL SD WARREN WOULD HAVE A STRONG POSITIVE IMPACT ON THE STOCK BUT MANY BELIEVE SCOTT WILL WAIT FOR A NEW CHIEF EXECUTIVE BEFORE MAKING SUCH A DECISION 9401260030 940126 LEISURE & ARTS WHERE WAS TEITELBAUM BY ANNE MIDGETTE VIENNA IN 1895 THE WORLD'S FIRST JEWISH MUSEUM OPENED ITS DOORS IN VIENNA SPONSORED BY THE SOCIETY FOR THE COLLECTION AND CONSERVATION OF ARTISTIC AND HISTORIC MONUMENTS OF JUDAISM AS THE SOCIETY'S NAME INDICATES THE MUSEUM'S AIMS WERE AT ONCE ALLENCOMPASSING AND UNCLEAR SHOULD A JEWISH MUSEUM FOCUS ON THE RELIGIOUS OR THE CULTURAL THE ARTISTIC OR THE HISTORICAL ON JUDAISM IN A UNIVERSAL OR A LOCAL CONTEXT QUESTIONS OF IDENTITY WERE EFFECTIVELY PUT TO REST WHEN THE NAZIS CONFISCATED THE COLLECTION IN 1938 NOVEMBER 1993 98 YEARS AFTER THE OPENING OF THAT FIRST MUSEUM SAW THE UNVEILING OF THE NEW JEWISH MUSEUM OF THE CITY OF VIENNA IN MANY WAYS ITS GOALS ARE AS ALLENCOMPASSING AS THOSE OF ITS PREDECESSOR HOW AFTER ALL CAN ONE CONDENSE THE MULTIPLICITY CONTAINED WITHIN THE NOTION OF JEWISH CULTURE INTO A TIDY MUSEUM EXHIBIT RATHER THAN PRESENT A SINGLE DEFINITION OF THE TERM THE MUSEUM CELEBRATES MANY DIFFERENT ASPECTS IS JEWISH CULTURE FINE ARTS AND THE CONTEMPORARY WORLD AS THE SHOW THE SONG OF SONGS THROUGH FEB 13 PRESENTS IN PASTELS AND SCULPTURES BY GERMAN ARTIST HEINZ MACK OR SHOULD THE FOCUS BE INTELLECTUAL AND SOCIAL HISTORY EXEMPLIFIED BY AN EXHIBIT THROUGH MARCH 5 OF PHOTOGRAPHS AND TEXTS FROM THE 1934 INTERNATIONAL PSYCHOANALYTIC CONGRESS IN LUCERNE JUST AFTER HITLER CAME TO POWER IN GERMANY A CENTRAL FOCUS IS JEWISH CULTURE IN VIENNA THE MAIN EXHIBITION CALLED TEITELBAUM USED TO LIVE HERE THROUGH MAY 15 LITERALLY PLACES 30 JEWISH OBJECTS ON A HUGE MAP OF THE CITY THAT COVERS THE ENTIRE FLOOR ON THE MAP ARE AN ILLUMINATED MARRIAGE CONTRACT KETUBAH OF 1391 SARTRE'S DRAFT OF A SCREENPLAY ABOUT FREUD A LIGHT BULB FROM VIENNA'S FIRST LIGHTBULB FACTORY FOUNDED BY ZIONIST JOHANN KREMENEZKY IN 1880 AN ASSORTMENT OF CALLING CARDS FROM VARIOUS BARONS DE ROTHSCHILD HUGO VON HOFFMANNSTHAL GUSTAV MAHLER AND SO ON ONE POINT ON THE MAP BUT ONLY ONE POINT IS A LENGTH OF YELLOW FABRIC EMBOSSED WITH THE SIXPOINTED STAR DISPLAYED BENEATH A LIST OF NAZI DEPORTATIONS FROM VIENNA TO THE DEATH CAMPS IN A SEPARATE ALCOVE IS A POSTWAR TAPE RECORDING OF AUSTRIAN FEDERAL GOVERNMENT MEETINGS RIFE WITH STEREOTYPES AND PREJUDICE ABOUT HOW TO HANDLE THE JEWISH COMMUNITY THE EPONYMOUS TEITELBAUM WAS NOT A FAMOUS RESIDENT OF VIENNA THERE WERE HOWEVER 16 TEITELBAUMS LISTED IN THE 1938 TELEPHONE BOOK TODAY THERE ISN'T A SINGLE ONE JEWISH CULTURE AS PART AND PARCEL OF VIENNESE LIFE IS A THING OF THE PAST IN LIGHT OF THIS THE MUSEUM'S TASK IS TO RECREATE A WORLD THE WHOLE INSTITUTION WAS THROWN TOGETHER AT TERRIFIC SPEED IN 1986 VIENNA'S MAYOR HELMUT ZILK ANNOUNCED THAT HE WAS COMMITTED TO THE IDEA OF A JEWISH MUSEUM IN 1993 WITH ELECTIONS AND THE POSSIBLE END OF HIS TERM APPROACHING HE DECIDED TO MAKE GOOD ON HIS PLEDGE A SPACE WAS FOUND IN THE ESKELES PALACE AT THE CENTER OF TOWN BY THE TIME THE LEASE WAS SIGNED THE NEW DIRECTOR HISTORIAN AND PROFESSOR JULIUS H SCHOEPS AND HIS STAFF HAD JUST FOUR MONTHS IN WHICH TO ASSEMBLE THE SHOWS AND CATALOGS THE UNWONTED SPEED AT WHICH ALL THIS WAS CARRIED OUT DEMONSTRATES THAT WHATEVER A JEWISH MUSEUM IN THE GERMANSPEAKING WORLD MAY BE IT IS UNAVOIDABLY A POLITICAL AND POLITICALLY CORRECT ISSUE THE HASTE MAY CREATE FUTURE PROBLEMS THE ESKELES PALACE IS RATHER SMALL FOR LARGESCALE EXHIBITIONS SUCH AS THE CHAGALL SHOW SCHEDULED TO ARRIVE FROM JERUSALEM NEXT YEAR AS THE BUILDING IS A DESIGNATED LANDMARK IT WILL BE HARD TO GET PERMISSION TO EXPAND IT ALTHOUGH AN ARCHITECTURAL COMPETITION HAS BEEN PLANNED IT WILL BE DIFFICULT TO HOUSE THE EXTENSIVE PERMANENT COLLECTIONS WHICH INCLUDE THE BERGER COLLECTION 10000 OBJECTS RELATING TO THE ASHKENAZI JEWS THE JEWISH COMMUNITY COLLECTION WHICH INCLUDES THE HOLDINGS OF THE ORIGINAL JEWISH MUSEUM AND THE SCHLAFF COLLECTION OF 5000 ANTISEMITIC OBJECTS THE BASIS FOR A SHOW PLANNED FOR 1995 THE MUSEUM WON'T BE COMPLETELY FINISHED FOR ANOTHER TWO TO THREE YEARS SAYS CURATOR GABRIELE KOHLBAUERFRITZ STILL IT'S OFF TO A GOOD START THE RESPONSE HAS BEEN TREMENDOUS SHE ADDS CENTRAL TO THE CONCEPT OF THE MUSEUM IS THE FACT THAT IT WAS ONCE IMPOSSIBLE TO SEPARATE JEWISH CULTURE FROM THAT OF THE LARGER SOCIETY A PARTICULARLY POIGNANT POINT FOR ALL THOSE PEOPLE WHO'D ALWAYS THOUGHT OF THEMSELVES AS PLAIN GERMANS OR AUSTRIANS UNTIL THE 1930S THE NAZIS MADE THIS ESSENTIALLY ARTIFICIAL SEPARATION WITH TREMENDOUS EFFICIENCY ONE COULD ARGUE THAT EMPHASIZING THE JEWISHNESS OF MAHLER OR SCHOENBERG OVER THEIR UNIVERSAL QUALITIES AS ARTISTS IS TO CONTINUE THE ARTIFICIAL DIVISION IN AN AMERICAN CONTEXT IT MIGHT BE IN GERMANSPEAKING COUNTRIES IT'S PART OF THE DESPERATELY NEEDED PROCESS OF REBUILDING AND RECLAIMING JEWISH CULTURE AND IDENTITY IN THIS MUSEUM DR SCHOEPS HOPES TO CREATE A PLACE THAT IS NOT MERELY A TOURIST ATTRACTION BUT AN ACTIVE PART OF THE COMMUNITY OF INTELLECTUAL AND ARTISTIC EXCHANGE FURTHERING THIS ARE THE LECTURE HALL THE CAFE TEITELBAUM AND A BRANCH OF THE BOOKSTORE LITERATURHANDLUNG WHICH FOUNDED IN MUNICH 11 YEARS AGO BY RAHEL SALAMANDER IS THE MOST RENOWNED PURVEYOR OF JUDAICA IN THE GERMANSPEAKING WORLD A JEWISH MUSEUM HAS TO BE CAREFUL NOT TO LIMIT EUROPEAN JEWISH HISTORY TO THE PERSPECTIVE OF NAZI MURDERS STATES DR SCHOEPS IN THE TEITELBAUM CATALOG HIS SOLUTION TO DEFINE THE MUSEUM NOT ONLY AS A MONUMENT TO THE PAST BUT AS A PLACE CAPABLE OF RESTORING A PLETHORA OF JEWISH IDENTITIES TO THE FUTURE OF VIENNA MS MIDGETTE IS A WRITER IN MUNICH 9401260029 940126 POLITICS & POLICY CLINTON PLEDGES THAT CRIME AND WELFARE ISSUES WILL GET NEAREQUAL BILLING WITH HEALTH CARE BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FACED WITH INCREASING PRESSURE TO ADDRESS THE PROBLEMS OF CRIME AND WELFARE PRESIDENT CLINTON SAID IN HIS STATE OF THE UNION ADDRESS THAT HE WOULD GIVE THOSE TWO ISSUES NEAREQUAL BILLING WITH HIS TOP PRIORITY HEALTHCARE OVERHAUL AT THE SAME TIME HE INCREASED THE STAKES FOR HEALTH LEGISLATION HE ISSUED HIS FIRST VETO THREAT SAYING HE WOULD KILL ANY HEALTHCARE REFORM BILL THAT DOESN'T PROVIDE COVERAGE FOR EVERY AMERICAN I WANT TO MAKE THIS VERY CLEAR THE PRESIDENT SAID WAVING A BLACK PEN AT THE LAWMAKERS IN THE AUDIENCE IF YOU SEND ME LEGISLATION THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY YOU WILL FORCE ME TO TAKE THIS PEN VETO THE LEGISLATION AND WE'LL COME RIGHT BACK HERE AND START OVER AGAIN AS RECENTLY AS LAST MONTH THE WHITE HOUSE EXPECTED LAST NIGHT'S NATIONALLY TELEVISED SPEECH TO FOCUS ON HEALTH CARE BUT MR CLINTON CHANGED THE FOCUS TO INCLUDE CRIME AND WELFARE AS WELL HE EVEN TIED THE THREE ISSUES TOGETHER AND INSISTED THAT LEGISLATION AFFECTING THEM BE ENACTED THIS YEAR I KNOW IT WILL BE DIFFICULT TO TACKLE WELFARE REFORM IN 1994 AT THE SAME TIME WE TACKLE HEALTH CARE MR CLINTON SAID BUT HE SAID IT IS INEVITABLE AND IMPERATIVE TO DO SO HE THEN ADDED IT IS ESTIMATED THAT ONE MILLION PEOPLE ARE ON WELFARE TODAY BECAUSE IT IS THE ONLY WAY THEY COULD GET HEALTH CARE COVERAGE FOR THEIR CHILDREN WHILE THERE AREN'T ANY CONCLUSIVE FINDINGS ABOUT THE LINK BETWEEN WELFARE AND HEALTH INSURANCE WELFARE EXPERTS SAY THAT ABOUT 6 OF RECIPIENTS THOSE WITH SPECIAL MEDICAL NEEDS COLLECT WELFARE SPECIFICALLY TO GET THE ATTENDANT HEALTH COVERAGE AT LEAST ONE STUDY SHOWS THAT WELFARE CASELOADS WOULD DROP BY 25 IF PRIVATE HEALTH INSURANCE THAT MATCHES THE COMPREHENSIVE COVERAGE OF MEDICAID WERE EXTENDED TO ALL WORKING WOMEN WHO HEAD HOUSEHOLDS LAST NIGHT'S SPEECH WAS A MARKED DEPARTURE FOR MR CLINTON WHO TO DATE HAS CONCENTRATED ON ECONOMIC MATTERS PARTICULARLY REDUCING THE FEDERAL BUDGET DEFICIT AND EXPANDING FOREIGN TRADE LAST NIGHT HE EFFECTIVELY DECLARED VICTORY ON THAT SUBJECTTAKING CREDIT FOR THE IMPROVING ECONOMY AND PREPARED TO MOVE ON THE PRESIDENT SIGNALED THAT HE WANTS TO SET A NEW SOCIALLY CONSCIOUS TONE FOR HIS ADMINISTRATION TAKING ON THE MANTLE OF MORAL LEADER HE TRUMPETED THE NEED FOR FAMILY VALUES AND A SENSE OF COMMUNITY HE ALSO VOWED TO PRESS FOR AN END TO VIOLENCE ON THE STREETS AND FOR CITIZENS TO TAKE RESPONSIBILITY FOR THEIR ACTIONS MR CLINTON CLEARLY HAS BEEN INFLUENCED BY THE GROWING PUBLIC DRUM BEAT FOR ACTION ON CRIME AND WELFARE CHANGES IN A RECENT WALL STREET JOURNAL/NBC POLL 93 OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY 83 NAMED REVISING THE WELFARE SYSTEM AND 67 CITED HEALTH CARE AL FROM PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL SAID MR CLINTON'S POLITICAL INSTINCTS ALERTED HIM TO THE NEED TO ADD CRIME AND WELFARE TO THE AGENDA TWO ISSUES THAT TRADITIONALLY HAVE BEEN CHAMPIONED BY REPUBLICANS IF CONGRESS MANAGES TO ACT ON HEALTH CARE WELFARE AND CRIME MR FROM SAID THE PRESIDENT WILL HAVE CHANGED THE POLITICAL LANDSCAPE TAKING THE TURF THAT THE REPUBLICANS HAVE HELD RESPONDING TO THE PRESIDENT SENATE MINORITY LEADER ROBERT DOLE R KAN CREDITED MR CLINTON AND HILLARY RODHAM CLINTON WITH SPARKING THE DEBATE ON HEALTH CARE BUT SEN DOLE COMPLAINED THAT THE ADMINISTRATION'S PLAN WOULD LEAD TO TOO MUCH GOVERNMENT CONTROL THE PRESIDENT'S IDEA MR DOLE SAID IS TO PUT A MOUNTAIN OF BUREAUCRATS BETWEEN YOU AND YOUR DOCTOR MR DOLE ALSO WONDERED WHETHER MR CLINTON WILL FOLLOW THROUGH ON TOUGH TALK AGAINST CRIME REPUBLICANS WANT PRESIDENT CLINTON TO SIGN THE TOUGHEST BILL POSSIBLE HE SAID CITING SEVERAL MEASURES SUCH AS THE DEATH PENALTY FOR DRUG KINGPINS THAT THE ADMINISTRATION HASN'T ENDORSED MR CLINTON ENTERED THE HOUSE 10 MINUTES LATER THAN SCHEDULED AND HE GREW HOARSE DURING THE SPEECH WHICH LASTED MORE THAN AN HOUR HE WAS MOST PASSIONATE WHEN DISCUSSING CRIME AND VALUES INSTILLED BY HIS MOTHER WHO DIED EARLIER THIS MONTH HE USED THE SPEECH TO MEND FENCES WITH THE LABOR MOVEMENT SEATED NEXT TO MR CLINTON'S WIFE IN THE VISITORS' GALLERY WAS LANE KIRKLAND PRESIDENT OF THE AFLCIO WHO HAD BITTERLY OPPOSED THE PRESIDENT ON THE NORTH AMERICAN FREE TRADE AGREEMENT ON HER OTHER SIDE WAS JACK SMITH CHIEF EXECUTIVE OFFICER OF GENERAL MOTORS CORP A SUPPORTER OF THE TRADE ACCORD HEALTH CARE REMAINED FIRST AMONG EQUALS FOR THE PRESIDENT'S ATTENTION MR CLINTON STRONGLY REJECTED THE NOTION ADVANCED BY SOME REPUBLICANS THAT THE AMERICAN PEOPLE DON'T SEE THE NEED FOR HEALTHCARE CHANGES AS A CRISIS I KNOW THERE ARE PEOPLE HERE WHO SAY THERE IS NO HEALTHCARE CRISIS MR CLINTON SAID TELL IT TO THE 58 MILLION AMERICANS WHO DON'T HAVE HEALTH COVERAGE AT SOME TIME DURING EACH YEAR HE CHALLENGED THE PRESIDENT'S THREAT TO VETO ANYTHING LESS THAN UNIVERSAL HEALTH COVERAGE IS A POLITICALLY RISKY MOVE HIS ADVISERS WERE DIVIDED OVER WHETHER HE SHOULD MAKE IT THE STATEMENT WILL THRILL THE LEFT WING OF THE DEMOCRATIC PARTY PARTICULARLY THE ALMOST 100 HOUSE MEMBERS WHO BACK A BILL THAT WOULD ESTABLISH A FEDERALLY RUN TAXPAYERFINANCED SYSTEM OF NATIONAL HEALTH INSURANCE THE WHITE HOUSE NEEDS THESE LAWMAKERS TO PASS ANY COMPREHENSIVE HEALTH PLAN BUT THE PRESIDENT ALSO MUST HAVE THE VOTES OF SOME MODERATE DEMOCRATS AND REPUBLICAN TO PASS A HEALTH BILL AND THE VETO THREAT COULD ANTAGONIZE BOTH GROUPS MANY OF THEM DISLIKE THE TWO PRINCIPAL WAYS THAT HAVE BEEN PROPOSED TO ACHIEVE UNIVERSAL COVERAGE SETTING UP A NATIONAL GOVERNMENTRUN SYSTEM OR REQUIRING ALL EMPLOYERS TO PAY FOR PART OF THEIR WORKERS' HEALTH COVERAGE A GROUP OF 24 SENATE REPUBLICANS LED BY SEN JOHN CHAFEE R RI DOES BACK A THIRD WAY THOUGH THEY HAVE PROPOSED REQUIRING ALL INDIVIDUALS TO OBTAIN HEALTH INSURANCE AND OFFERING FEDERAL SUBSIDIES TO THOSE WHO CAN'T AFFORD IT EMPHASIZING THE NEED FOR A LARGER GOVERNMENT RETRAINING PROGRAM MR CLINTON SAID THE US MUST TRANSFORM OUR OUTDATED UNEMPLOYMENT SYSTEM INTO A NEW REEMPLOYMENT SYSTEM HE ALSO CALLED FOR ENACTMENT OF LEGISLATION CREATING A NATIONAL INFORMATION SUPERHIGHWAY THIS YEAR TO COMBAT CRIME MR CLINTON INDICATED HE FAVORS THE TOUGH APPROACH OF THE SENATE CRIME BILL OVER THE MORE PREVENTIONORIENTED MEASURES PASSED BY THE HOUSE WHILE MENTIONING JUST A FEW ITEMS IN THE ALMOST 1000PAGE SENATE LEGISLATION HE SPECIFICALLY ENDORSED ONE OF THE STRICT SENTENCING PROPOSALS THAT MANY LIBERALS OPPOSE A PROVISION THAT WOULD IMPRISON FOR LIFE CRIMINALS WHO COMMIT THREE VIOLENT CRIMES THE PRESIDENT ALSO URGED PASSAGE OF MEASURES THAT WOULD BAN SEMIAUTOMATIC ASSAULT WEAPONS AND PUT 100000 POLICE OFFICERS ON THE STREETS TO HELP PREVENT CRIME HE CALLED FOR APPROVAL OF INCREASES IN DRUG TREATMENT AND DRUG EDUCATION PROGRAMS WHILE POLISHED AT DOMESTIC POLITICS MR CLINTON HAS STRUGGLED IN THE PAST AT ARTICULATING HIS FOREIGNPOLICY GOALS HE TRIED TO BE CLEARER ABOUT THEM LAST NIGHT FIRST HE SAID HE WILL REFUSE TO CUT MILITARY SPENDING FURTHER THE BUDGET I WILL SEND TO THIS CONGRESS DRAWS THE LINE AGAINST FURTHER DEFENSE CUTS AND FULLY PROTECTS THE READINESS AND QUALITY OF OUR FORCES FURTHER MR CLINTON ALSO TRIED TO FOCUS ON THE NEED TO ASSIST STRUGGLING NEW DEMOCRACIES AMONG THE PRESIDENT'S PRIORITIES WILL BE FIGHTING PROLIFERATION OF NUCLEAR WEAPONS SUPPORTING REFORM IN RUSSIA AND BRINGING EUROPE'S NEW DEMOCRACIES INTO A CLOSER RELATIONSHIP WITH THE NORTH ATLANTIC TREATY ORGANIZATION HE BARELY MENTIONED THE LINGERING HUMANITARIAN CRISES IN BOSNIA AND SOMALIA AREAS WHERE MR CLINTON HAS FAILED TO FIND SOLUTIONS TO COMPLICATED PROBLEMS IN HAITI HE VOWED THE US WOULD CONTINUE TO PRESS FOR THE RESTORATION OF DEMOCRACY MR CLINTON ALSO APPEALED TO AN INCREASINGLY SKEPTICAL CONGRESS TO CONTINUE TO SUPPORT REFORM EFFORTS IN RUSSIA AND FOR THE FIRST TIME HE HINTED AT TWO AREAS OF POTENTIAL TROUBLE BETWEEN MOSCOW AND WASHINGTON SAYING THAT HE WOULD PRESS THE RUSSIANS TO MOVE FORWARD WITH FLAGGING ECONOMICREFORM EFFORTS AND INSIST THAT RUSSIA'S DEALINGS WITH ITS CLOSEST NEIGHBORS BE LIMITED BY STRICT INTERNATIONAL STANDARDS MR CLINTON CROWED ABOUT THE IMPROVING ECONOMY AND HIS ROLE IN REDUCING THE BUDGET DEFICIT WHICH FOR FISCAL 1995 IS NOW PROJECTED TO BE BELOW 180 BILLION A YEAR AGO THE WHITE HOUSE BUDGET OFFICE PREDICTED THAT THE 1995 DEFICIT WOULD BE 296 BILLION WITHOUT ANY ACTION AFTER THE DEFICITREDUCTION LAW WAS ENACTED LAST AUGUST BOTH THE WHITE HOUSE AND THE CONGRESSIONAL BUDGET OFFICE ESTIMATED THAT THE 1995 DEFICIT WOULD BE ABOUT 200 BILLION DEPENDING ON WHO IS DOING THE ESTIMATING BETWEEN 60 AND 80 OF THE DECLINE FROM 296 BILLION REFLECTED THE NEW LAW THE REMAINDER REFLECTED REVISED ECONOMIC AND TECHNICAL ASSUMPTIONS BOTH THE CBO AND THE WHITE HOUSE PROJECT THAT IF CURRENT POLICIES REMAIN IN PLACE THE DEFICIT WILL LEVEL OFF AND THEN BEGIN TO GROW AGAIN LATER IN THIS DECADE 9401260028 940126 BUSINESS BRIEF AMREP CORP COMPANY INVESTOR AGREES TO BUY 12 MILLION SHARES AMREP CORP SAID INVESTOR NICK G KARABOTS A DIRECTOR OF THE COMPANY HAD AGREED TO PURCHASE ABOUT 12 MILLION AMREP SHARES FOR 10 A SHARE FROM SHAREHOLDER PETER B BEDFORD THE PURCHASE WOULD BOOST MR KARABOTS'S HOLDINGS TO MORE THAN 24 OF THE SHARES OUTSTANDING FROM ABOUT 8 MR KARABOTS'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION INDICATED HE VIEWS THE PURCHASE AS AN INVESTMENT MR KARABOTS ACQUIRED HIS CURRENT STAKE IN AUGUST IN EXCHANGE FOR DISTRIBUTION RIGHTS TO PUBLICATIONS PUBLISHED OR DISTRIBUTED BY HIS COMPANIES AMREP IS A NEW YORK HOUSING DEVELOPER AND DISTRIBUTOR OF MORE THAN 800 MAGAZINES TO LOCAL WHOLESALERS ACROSS THE COUNTRY AMREP WAS QUOTED AT 9375 UP 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9401260027 940126 INTERNATIONAL CHINESE BUREAUCRATS TAKE HOPES PRIVATE MANY LEAVE GOVERNMENT TO PURSUE BUSINESS AMBITIONS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING AS A FRESH COLLEGE GRADUATE JIANG XINHAO WAS ELATED WHEN CHINA'S STATE COMMISSION FOR RESTRUCTURING ECONOMY HIRED HIM TO STUDY THE DEVELOPMENT OF SPECIAL ECONOMIC ZONES IT WAS ONE OF THE HOTTEST JOBS AROUND FOR YOUNG PEOPLE HE SAYS THAT WAS IN 1986 IN THE EARLY DAYS OF CHINA'S EXPERIMENT WITH FREEMARKET ECONOMICS TODAY THE 28YEAROLD ARMED WITH A PORTABLE PHONE AND A PAGER DARTS AROUND BEIJING AS A MANAGER FOR HENG TONG CO A THRIVING PROPERTY AND TRANSPORT COMPANY HE EARNS ABOUT 2000 YUAN 230 A MONTH COMPARED WITH ABOUT 300 YUAN AT HIS OLD JOB RESEARCHING REFORMS IS OUT XIA HAI' IS IN MR JIANG SAYS XIA HAI WHICH MEANS TO JUMP INTO THE SEA IS SLANG FOR LEAVING GOVERNMENT TO ENTER THE BUSINESS WORLD LOTS OF GOVERNMENT EMPLOYEES MOST OF THEM SEMISKILLED WORKERS AND SPECIALIZED TECHNICIANS HAVE TAKEN THE LEAP SINCE THE EARLY 1980S BUT MORE RECENTLY SOME OF CHINA'S BEST AND BRIGHTEST BUREAUCRATS HAVE JOINED THE RUSH TO THE PRIVATE SECTOR BETTER PAY IS ONE REASON BUT MANY PEOPLE ARE LEAVING THEIR GOVERNMENT JOBS BECAUSE THEY FIND PRIVATE BUSINESS MORE CHALLENGING AND MORE INTERESTING IN ADDITION BEIJING'S 1989 CRACKDOWN ON PRODEMOCRACY ACTIVISTS PUT A DAMPER ON MANY GOVERNMENT RESEARCHERS AND POLICY MAKERS WHO BACKED THE MOVEMENT PROMPTING THEM TO PURSUE REFORM FROM THE OUTSIDE IN ONE WAY THE EXODUS IS GOOD HELPING BEIJING REDUCE ITS BLOATED BUREAUCRACY LAST YEAR BEIJING ORDERED THAT ALL GOVERNMENT DEPARTMENTS CUT STAFF BY ONEFOURTH COVERING ABOUT TWO MILLION JOBS BUT THE BRAIN DRAIN COMES AT A TIME WHEN CHINA NEEDS EXPERTISE TO HELP GUIDE IT THROUGH SOME OF THE MORE CHALLENGING PHASES OF REFORM SUCH AS OVERHAULING AILING STATE ENTERPRISES AND REFORMING THE TAX SYSTEM WHILE KEEPING INFLATION CURRENTLY IN DOUBLE DIGITS FROM WORSENING THE GOVERNMENT'S QUALITY AND EFFICIENCY ARE GOING DOWN SAYS YANG YANG EXECUTIVE VICE PRESIDENT OF CHINA INTERNATIONAL INTELLECTECH CO A JOBPLACEMENT FIRM PARTLY BACKED BY A GOVERNMENT AGENCY THE GOVERNMENT SHOULD BE SLIM BUT IT SHOULD ALSO HAVE MUSCLE NOW SOME SUBSTANTIAL DEPARTMENTS DON'T HAVE SUBSTANCE THE STATE COUNCIL'S DEVELOPMENT RESEARCH CENTER FOR EXAMPLE HAS LOST ABOUT TWOTHIRDS OF 16 RESEARCHERS IN ITS MARKET AND PRICE DEPARTMENT OVER THE PAST TWO YEARS MA JIANTANG WHO HEADS THE DEPARTMENT SAYS THAT WHILE THE OFFICE USED TO BE OVERSTAFFED I WISH SOME OF THEM WOULD HAVE STAYED THE PROBLEM IS ECONOMIC RESEARCH ORGANIZATIONS THESE DAYS HAVE NEITHER POWER NOR MONEY TIAN YUAN IS ONE RESEARCHER THAT THE CENTER WOULD HAVE LIKED TO KEEP A YEAR AGO MR TIAN LEFT HIS JOB TO BECOME CHAIRMAN OF CHINA INTERNATIONAL FUTURES CO THE THOUGHTFUL SOFTSPOKEN ANALYSTTURNEDBUSINESSMAN SAYS HE MADE THE SWITCH BECAUSE HE FELT HE COULD ACCOMPLISH MORE IN THE PRIVATE SECTOR MY PERSONALITY IS SUCH THAT WHEN I HAVE AN IDEA I JUST DO IT HE SAYS TO SET UP A FUTURES MARKET IN CHINA REQUIRES A LOT OF EXPLAINING TO THE GOVERNMENT AND IN THE TIME THAT IT TAKES I COULD'VE GONE AHEAD AND DONE IT ALL THE 39YEAROLD MR TIAN WORKED AROUND THE CLOCK NAPPING OCCASIONALLY ON HIS OFFICE FLOOR AS HE BUILT UP THE COMPANY'S BUSINESS OF TRADING GOLD COMMODITY FINANCIAL AND OTHER FUTURES ON CHINESE AND FOREIGN EXCHANGES IN THE YEAR SINCE HE TOOK OVER HIS STAFF HAS GROWN TO 1000 FROM FIVE AND ASSETS HAVE DOUBLED TO 100 MILLION YUAN MR TIAN NOW EARNS MORE AND RIDES IN A CHAUFFERED AUDI BUT HE SAYS IDEALISM UNDERPINS HIS DRIVE IN HIS CURRENT JOB JUST AS IT DID IN GOVERNMENT WHERE HE CONDUCTED PIONEERING EXPERIMENTS WITH MERGERS AND FUTURES MARKETS IN THE MID1980S I STILL WANT TO HELP MY COUNTRY BUT MY WAY OF DOING IT IS DIFFERENT HE SAYS BEFORE I DEVELOPED POLICY NOW I CAN HELP DEVELOP AN INDUSTRY HE SAYS HE HAS TURNED DOWN SEVERAL OFFERS TO RETURN TO GOVERNMENT WORK THE BELIEF AMONG PEOPLE SUCH AS MR TIAN THAT THEY CAN HELP CHINA MORE BY WORKING IN THE PRIVATE SECTOR HAS BEEN STOKED BY THE GOVERNMENT'S ATTITUDE TOWARD THEM AS A DEPARTMENT HEAD AT THE RESEARCH INSTITUTE OF THE STATE COMMISSION FOR RESTRUCTURING ECONOMY ZHANG SHAOJIE PARTICIPATED IN SOME OF THE FRONTLINE REFORM DEBATES OF THE 1980S BUT FOLLOWING THE 1989 CRACKDOWN AND A BOUT OF ECONOMIC OVERHEATING REFORM EFFORTS CAME TO A VIRTUAL HALT SO IN 1991 HE AND SOME FRIENDS SET UP HENG TONG THE BEIJING PROPERTY AND TRANSPORT CONCERN WHERE MR JIANG WORKS WITH MR ZHANG AS CHAIRMAN I TOOK EIGHT RESEARCHERS WITH ME TO HENG TONG SAYS THE 41YEAROLD MR ZHANG MR JIANG JOINED LATER IN SOME WAYS HE SAYS HE HAS BEEN ABLE TO ACCOMPLISH MORE FOR REFORM WITH HENG TONG THAN HE DID IN GOVERNMENT FOR EXAMPLE WHEN FORMER COLLEAGES AT THE RESTRUCTURING COMMISSION WANTED TO EXPERIMENT WITH SOCALLED LEGALBODY SHARES WHICH ARE TRADED ONLY AMONG ENTERPRISES HE VOLUNTEERED HENG TONG TO ISSUE SHARES AFTER OTHER COMPANIES REFUSED IN ADDITION WE CAN ASK LOCAL GOVERNMENTS FOR SUCHANDSUCH A CONDITION IF WE BRING IN INVESTMENTS AND THAT'S LIKE A KIND OF REFORM HE SAYS NOT ALL BUREAUCRATS WHO GO INTO BUSINESS ENJOY THE COMPETITION AND RISK THAT COME WITH IT ZHENG HONGQING CHAIRMAN OF WUHUA CO SAYS THAT WHILE HE WOULDN'T CONSIDER RETURNING TO HIS HIGHLEVEL POSITION AT THE RESTRUCTURING COMMISSION FOR NOW RUNNING HIS PROPERTYINVESTMENT CONCERN HASN'T BEEN EASY IN LATE 1992 MR ZHENG TOOK UP AN OFFER TO RUN THE COMPANY FROM ONE OF THE GOVERNMENT DEPARTMENTS THAT FINANCED IT AT THE TIME THE PROPERTY MARKET WAS PEAKING SHORTLY AFTERWARD PRICES STARTED TO FALL AND BADLY NEEDED LOANS WERE CUT OFF AS BEIJING IMPLEMENTED AN AUSTERITY PROGRAM IN JUNE AS A RESULT THE COMPANY HASN'T BEEN ABLE TO SELL OR DEVELOP ITS HOLDINGS IN BEIJING AND IF YOU CAN'T SELL YOU LOSE MONEY SAYS MR ZHENG THE DIFFERENCES BETWEEN THEORY AND ACTUALLY DOING SOMETHING ARE REALLY BIG HE SIGHS 9401260025 940126 TEXAS JOURNAL WINNERS & LOSERS POT FARMERS A FEDERAL JUDGE RULED THAT THE SEARCH OF AN UNDERGROUND POT FARM IN EAST TEXAS WAS ILLEGAL BECAUSE AUTHORITIES USED HEATDETECTION DEVICES WITHOUT A WARRANT JOSEPH MCKINNEY TYLER CORP'S CEO ESCAPED WITH MINOR INJURIES AFTER HE CRASHLANDED A PLANE IN KENTUCKY HOMESICK AUSTRALIANS TEXAS HAS BECOME THE LEADING US BREEDING SITE FOR WALLABIES A SMALL RELATIVE OF THE KANGAROO IMPATIENT DIALERS SOUTHWESTERN BELL PLANS TO ASSIGN AN ADDITIONAL AREA CODE TO HOUSTON NEXT YEAR BECAUSE THE CITY HAS NEARLY OUTGROWN THE 713 PREFIX PRUDENTIAL SECURITIES THE SECURITIES FIRM AGREED TO TEMPORARILY SUSPEND OPENING NEW BROKERAGE ACCOUNTS IN TEXAS AS PART OF A SETTLEMENT WITH STATE AUTHORITIES 9401260024 940126 WHO'S NEWS CINCINNATI MILACRON INC CINCINNATI MILACRON INC CINCINNATI JAMES R CHRISTIE WAS NAMED PRESIDENT OF THIS MACHINERY MAKER'S VALENITE INC UNIT MR CHRISTIE 48 YEARS OLD SUCCEEDS DONALD OTERO WHO RETIRED LAST YEAR CINCINNATI MILACRON ACQUIRED VALENITE WHICH MAKES CARBIDE CUTTINGTOOL INSERTS AND STEEL INSERT HOLDERS FOR METALWORKING FROM GTE CORP LAST FEBRUARY MR CHRISTIE HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LONDONBASED HICKSON INTERNATIONAL PLC'S APPLIED CHEMICALS & WORLD TIMBER CO UNIT 9401260022 940126 TECHNOLOGY & HEALTH COFFEE IS FOUND TO CUT BONE DENSITY MILK TO COUNTER IT CHICAGO A NEW STUDY SUGGESTS THAT COFFEE CAN INDUCE OSTEOPOROSIS IN OLDER WOMEN BUT THAT A GLASS OF MILK A DAY WILL COUNTER IT THE REPORT BASED ON 980 WOMEN BETWEEN 50 AND 98 YEARS OLD FOUND THAT LIFETIME CONSUMPTION OF CAFFEINATED COFFEE WAS ASSOCIATED WITH DECREASED BONE DENSITY A KEY INDICATOR OF OSTEOPOROSIS THE DISORDER IS A COMMON CAUSE OF BROKEN HIPS AND OTHER FRACTURES AMONG WOMEN PAST THE AGE OF MENOPAUSE BUT RESEARCHERS FOUND NO SIGNIFICANT DIFFERENCES IN BONE DENSITY AMONG PARTICIPANTS IN THE STUDY WHO DRANK AT LEAST A GLASS OF MILK A DAY OVER MOST OF THEIR ADULT LIVES NO MATTER WHAT THEIR COFFEE INTAKE THE STUDY BY ELIZABETH BARRETTCONNOR AND COLLEAGUES AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO IS PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION IT WAS FUNDED BY THE NATIONAL INSTITUTE ON AGING AND THE NATIONAL COFFEE ASSOCIATION THE RESULTS ARE BASED ON XRAY TESTS OF THE PARTICIPANTS' HIPS AND SPINES AS WELL AS A QUESTIONNAIRE ADMINISTERED BETWEEN FEBRUARY 1988 AND JANUARY 1992 THAT SOLICITED A VARIETY OF DATA INCLUDING LIFETIME DAILY CONSUMPTION OF COFFEE AND MILK ALL OF THE WOMEN WERE WHITE AND FROM THE UPPERMIDDLE CLASS COMMUNITY OF RANCHO BERNARDO CALIF THE FINDINGS DON'T PROVE THAT CAFFEINATED COFFEE CAUSES OSTEOPOROSIS BUT THE RESEARCHERS FOUND A STATISTICAL ASSOCIATION BETWEEN THE TWO AFTER ADJUSTING FOR SUCH FACTORS AS AGE CIGARETTE SMOKING ALCOHOL CONSUMPTION USE OF ESTROGENREPLACEMENT THERAPY AND THE NUMBER OF YEARS THAT HAVE PASSED SINCE MENOPAUSE SOME PREVIOUS STUDIES HAVE SHOWN THAT CAFFEINE HAS A NEGATIVE EFFECT ON CALCIUM IN LABORATORY ANIMALS AND PEOPLE WHOSE DIETS ARE LOW IN CALCIUM 9401260021 940126 US WON'T CHALLENGE CREATION OF DATABASE WITH INSURANCE PRICES WASHINGTON THE JUSTICE DEPARTMENT SAID IT WON'T CHALLENGE ON ANTITRUST GROUNDS A PLAN BY INSURANCE COMPANIES TO CREATE A COMPUTER DATABASE THROUGH WHICH PRICE INFORMATION COULD BE SHARED IN A LETTER TO INSURANCE SERVICES OFFICE INC A NONPROFIT COMPANY COMPRISED OF 1400 PROPERTY AND CASUALTY INSURERS ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID FEDERAL LAW EXEMPTS THE INSURANCE INDUSTRY FROM ANTITRUST LAWS INSURANCE SERVICES PLANS TO SELL ITS PROGRAM WHICH CONTAINS PUBLIC RECORD INFORMATION PRIMARILY TO INSURANCE COMPANIES AND STATE REGULATORS MS BINGAMAN INDICATED THE DEPARTMENT ORDINARILY WOULD BE CONCERNED ABOUT THE PROPOSAL BECAUSE IT COULD BE USED BY INSURERS TO FIX PRICES THE MCCARRANFERGUSON ACT HOWEVER IMMUNIZES FROM ANTITRUST ENFORCEMENT THE BUSINESS OF INSURANCE TO THE EXTENT THAT SUCH BUSINESS IS REGULATED BY STATE LAW' SHE SAID IN HER LETTER IN JULY SHE TOLD CONGRESS SHE FAVORS NARROWING THAT EXEMPTION'S SCOPE DAVID OSTWALD THE COMPANY'S VICE PRESIDENT FOR CORPORATE COMMUNICATIONS SAID HIS PRODUCT WOULD BOOST RATHER THAN HAMPER COMPETITION BECAUSE INFORMATION IS THE OXYGEN OF COMPETITION KNOWLEDGE OF WHAT THE COMPETITION IS CHARGING DOESN'T LEAD TO PRICE FIXING HE ADDED MS BINGAMAN'S LETTER INDICATED THAT JUSTICE DEPARTMENT OFFICIALS RELIED ON ISO REPRESENTATIONS THAT STATE REGULATIONS ADEQUATELY COVER ITS PROPOSAL IF STATE REGULATION IS NOT AS YOU REPRESENT IT OR IF IT SHOULD CHANGE THE DEPARTMENT COULD TAKE A DIFFERENT POSITION ON THE APPLICATION OF THE MCCARRANFERGUSON ACT EXEMPTION TO ISO'S DEVELOPMENT AND MARKETING OF ITS PROPOSED PREMIUMCOMPARISON PRODUCT SHE WROTE 9401260020 940126 US LIFTS CITY NATIONAL ORDER BEVERLY HILLS CALIF CITY NATIONAL CORP SAID THE FEDERAL OFFICE OF THE COMPTROLLER OF THE CURRENCY LIFTED THE ORDER THAT HAD REQUIRED THE COMMERCIAL BANK TO RAISE 65 MILLION IN CAPITAL AND TO MEET OTHER CONDITIONS AFTER THE NOVEMBER 1992 ORDER CITY NATIONAL SAID IT RAISED 81 MILLION THROUGH A RIGHTS OFFERING OF COMMON STOCK AND TOOK OTHER STEPS TO IMPROVE THE COMPANY'S FINANCIAL CONDITION 9401260019 940126 TECHNOLOGY & HEALTH US PATENT OFFICE TO BEGIN HEARINGS IN BID TO QUIET SOFTWARE INDUSTRY CRITICS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL THE US PATENT AND TRADEMARK OFFICE BESET WITH COMPLAINTS OVER ITS HANDLING OF COMPUTER SOFTWARE PATENTS TODAY BEGINS A SERIES OF HEARINGS AIMED AT QUIETING CRITICS AND GAINING A HELPING HAND FROM INDUSTRY SOFTWARE MAKERS HAVE CARPED FOR YEARS ABOUT THE PATENT OFFICE'S PENCHANT FOR GRANTING OVERLY BROAD PATENTS FOR WHAT SEEM TO PEOPLE IN THE INDUSTRY TO BE OBVIOUS CODING TECHNIQUES AN AWARD OF A BASIC MULTIMEDIA PATENT LAST YEAR TO COMPTON'S NEW MEDIA A SUBSIDIARY OF TRIBUNE PUBLISHING GALVANIZED CRITICS WHOSE OUTCRY FORCED A REEXAMINATION OF THE AWARD THE CONTROVERSY PROMPTED THE PATENT OFFICE TO CALL FOR PUBLIC HEARINGS ON HOW IT CAN IMPROVE ITS PROCESS OF EVALUATING AND GRANTING PATENTS ON SOFTWARE WHICH THE GOVERNMENT ESTIMATES IS THE BASIS FOR A 36 BILLION INDUSTRY MANY PROGRAMMERS INSIST AN OVERHAUL IS MUCH NEEDED ARGUING THAT THE PATENT OFFICE RISKS STIFLING INNOVATION BY GRANTING EXCLUSIVE OWNERSHIP TO ORDINARY TECHNIQUES THEY SAY THAT THE PROCESS OF APPLYING FOR A SOFTWARE PATENT IS TOO TIMECONSUMING AND EXPENSIVE AND THAT EXAMINERS ARE ILLPREPARED FOR TACKLING THE QUESTION OF NOVELTY WHEN IT COMES TO AS YOUNG AND RAPIDLY CHANGING FIELD AS SOFTWARE CRITICS ARE SPLIT OVER REMEDIES AT THE HEARINGS SET FOR TWO DAYS IN SAN JOSE CALIF THIS WEEK AND TWO DAYS IN ARLINGTON VA NEXT MONTH SOME PEOPLE WILL CALL FOR AN END TO AWARDING SOFTWARE PATENTS ALTOGETHER THE PATENT SYSTEM IS A DISASTER FOR SOFTWARE BECAUSE IT MAKES THE CREATION OF LARGE PROGRAMS INCREASINGLY DIFFICULT SAID RICHARD STALLMAN A PROGRAMMER IN CAMBRIDGE MASS IT MAKES DEVELOPING SOFTWARE LIKE WALKING THROUGH A MINEFIELD MR STALLMAN AND OTHERS ARGUE THAT THERE WAS PLENTY OF INNOVATION IN SOFTWARE PRIOR TO THE EARLY 1980S WHEN THE GOVERNMENT BEGAN TO AWARD PATENTS FOR SOFTWARE INVENTIONS REFORMING THE PROCESS MR STALLMAN SAID DOESN'T ADDRESS THE REAL PROBLEMS REFORMERS HOWEVER APPEAR TO HOLD THE UPPER HAND SOFTWARE UNDERPINS SO MANY ELECTRONIC PRODUCTS AND SERVICES TODAY THAT LARGE COMPANIES SEEM TO WANT EVERY POSSIBLE WEAPON AGAINST RIVALS BUT DEFENDERS OF SOFTWARE PATENTS AGREE THAT THE AWARDS PROCESS NEEDS TO BE REVAMPED ONE STARTING POINT MIGHT BE TO END THE VEIL OF SECRECY THAT COVERS ALL PENDING PATENT APPLICATIONS IN PERIODS OF RAPID CHANGE THE SECRECY WORKS AGAINST US BECAUSE IT INVITES OPPORTUNISM SAYS JOSEPH CLARK CHIEF EXECUTIVE OF VIDEODISCOVERY INC A CLOSELY HELD SEATTLE COMPANY MR CLARK SUGGESTS THAT THE PATENT OFFICE NOTIFY THE SOFTWARE INDUSTRY PRIOR TO A PATENT AWARD AND INVITE OFFERS OF EVIDENCE OF PRIOR ART WHICH IS THE EVIDENCE THAT PATENT EXAMINERS RELY ON TO DECIDE WHETHER AN INVENTION IS SUFFICIENTLY NOVEL BOLSTERING THE SUPPLY OF PRIOR ART IS MUCHNEEDED MANY SAY THE ART THAT'S AVAILABLE FOR EXAMINERS MAY NOT BE AS COMPLETE IN SOFTWARE AS IN OTHER FIELDS SAID THOMAS L GIANNETTI A PATENT ATTORNEY IN NEW YORK THEY DON'T HAVE THE HUNDREDS OF COMMERCIAL SOFTWARE PACKAGES THAT ARE WIDELY AVAILABLE THE INDUSTRY IS PREPARED TO OFFER THE PATENT OFFICE TECHNICAL HELP IN HOPES OF SEEING MORE NARROW AND CONSERVATIVE PATENT AWARDS WE ARE HOPING THE INDUSTRY CAN WORK WITH THE PATENT AND TRADEMARK OFFICE TO IMPROVE THE EXPERTISE OF THE PATENT EXAMINERS AND CREATE AN ADEQUATE DATABASE OF PRIOR ART AND TO GENERALLY STREAMLINE AND MAKE LESS EXPENSIVE THE PROCESS OF PATENT APPLICATIONS SAID WILLIAM NEUKOM VICE PRESIDENT OF LAW AND CORPORATE FOR MICROSOFT CORP THE LARGEST SOFTWARE MAKER IN THE US 9401260018 940126 SMALL STOCK FOCUS TECHNOLOGY STOCKS DRIVE MARKET DOWN FOR 2ND DAY WATCHERS AREN'T WORRIED BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCK PRICES DETERIORATED FOR A SECOND DAY BUT MARKET WATCHERS SAID IT WAS NORMAL FOLLOWING THE STRONG RUNUP THIS YEAR THE RUSSELL 2000 INDEX DECLINED 084 POINT OR 032 TO 26205 AFTER FALLING 091 POINT MONDAY THE INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES HAD SET EIGHT STRAIGHT RECORDS BEFORE MONDAY'S SLIDE A SHARP FALL IN THE PRICE OF INTERNATIONAL BUSINESS MACHINES SHARES DURING THE DAY PUSHED DOWN SOME SMALL TECHNOLOGY STOCKS AND THEY NEVER RECOVERED AMONG THE AFFECTED SMALL TECH STOCKS WERE PEAK TECHNOLOGIES GROUP A NEW YORK DISTRIBUTOR OF BARCODE DATACOLLECTION EQUIPMENT WHICH SLID 7/8 TO 9 1/8 RADIUS A SAN JOSE CALIF VISUAL COMPUTING SYSTEMS CONCERN DOWN 1 TO 7 3/8 AND WEITEK A SUNNYVALE CALIF DESIGNER OF HIGHPERFORMANCE NUMERICPROCESSING CIRCUITS AND SOFTWARE DOWN 7/8 TO 9 BUT EXAR JUMPED 1 1/2 TO 23 1/4 ON FISCAL THIRDQUARTER EARNINGS OF 56 CENTS A SHARE UP FROM 51 CENTS A YEAR EARLIER THE SAN JOSE CALIF COMPANY DESIGNS MANUFACTURES AND MARKETS ANALOG AND MIXEDSIGNAL APPLICATIONSPECIFIC INTEGRATED CIRCUITS GOOD EARNINGS ALSO HELPED SIGNAL TECHNOLOGY CLIMB 5/8 TO 5 1/2 THE WEYMOUNT MASS MAKER OF ELECTRONIC COMPONENTS AND SUBSYSTEMS REPORTED FOURTHQUARTER NET INCOME OF 18 CENTS A SHARE ON MORE SHARES COMPARED WITH 11 CENTS A YEAR EARLIER LANOPTICS ISRAEL SKIDDED 3 7/8 TO 13 5/8 LATE MONDAY THE DEVELOPER AND MANUFACTURER OF WIRING CONCENTRATORS AND RELATED NETWORKMANAGEMENT SYSTEMS SAID PRELIMINARY FOURTHQUARTER RESULTS INDICATE NET WILL BE ABOUT 600000 OR 10 CENTS A SHARE COMPARED WITH 1 MILLION OR 21 CENTS A SHARE A YEAR EARLIER BROADBAND TECHNOLOGIES DURHAM NC SURGED 2 TO 28 AFTER GOLDMAN SACHS & CO INITIATED COVERAGE OF THE STOCK WITH A BUY RATING AND ADDED THE TELECOMMUNICATIONS COMPANY TO ITS RECOMMENDED LIST INTERESTRATESENSITIVE STOCKS FELL AS BONDS SLID THE TREASURY'S 30YEAR BOND FELL MORE THAN 1/2 POINT PUSHING ITS YIELD UP TO 634 ANCHOR BANCORP WISCONSIN MADISON WIS FELL 1/2 TO 23 1/4 BANK OF NEW HAMPSHIRE MANCHESTER NH DECLINED 1/2 TO 18 AND PROVIDENT BANCORP CINCINNATI GAVE UP 1/2 TO 31 ELSEWHERE WLR FOODS ROCKETED 9 1/2 TO 28 1/2 LATE MONDAY TYSON FOODS SAID IT HAS PROPOSED TO BUY WLR A HINTON VA PRODUCER OF POULTRY AND MEAT PRODUCTS FOR 30 A SHARE IN CASH YESTERDAY WLR FOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER JAMES KEELER SAID TYSON'S PROPOSAL WAS TOTALLY UNSOLICITED UNWANTED AND OUT OF LINE WITH WLR FOODS' LONGTERM BUSINESS PLANS AND CORPORATE PHILOSOPHY ON THE BORDER CAFES A DALLASBASED OWNER AND OPERATOR OF CASUAL RESTAURANTS GAINED 1 1/8 TO 8 3/8 BRINKER INTERNATIONAL NYSE A RESTAURANT CONCERN SAID IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO ACQUIRE ON THE BORDER CAFES THE WEAK FINANCIAL AND TECHNOLOGY ISSUES CAUSED THE NASDAQ COMPOSITE INDEX TO LOSE 426 POINTS OR 054 TO END AT 78639 IT WAS JUST TIME TO TAKE A PAUSE SAID WILLIAM SULYA HEAD OF OVERTHECOUNTER TRADING AT AG EDWARDS & SONS INC NOTHING GOES STRAIGHT UP AS THE OLD SAYING GOES STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO SAID INVESTORS TOOK PROFITS BECAUSE THINGS HAD GOTTEN PRETTY STRETCHED AND THERE WAS TOO MUCH ENTHUSIASM LOSING NASDAQ ISSUES RAN AHEAD OF GAINERS 1690 TO 1379 NASDAQ NATIONAL MARKET VOLUME TOTALED 297149600 SHARES WHILE OVERALL VOLUME STOOD AT 339203700 SHARES MONDAY NATIONAL MARKET VOLUME WAS 258388600 SHARES AND TOTAL VOLUME WAS 303884000 NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 67 WHILE 25 HIT LOWS OBSERVERS SAID MORE PROFITTAKING MIGHT OCCUR IN THE NEXT FEW SESSIONS ALTHOUGH IT DOESN'T INDICATE THAT THINGS ARE COMING UNGLUED MR SULYA SAID IT'S JUST A NORMAL CORRECTION IN A HEALTHY BULL MARKET SINCE 1994 BEGAN THE RUSSELL 2000 IS UP 346 POINTS OR 134 AND THE NASDAQ COMPOSITE HAS RISEN 98 POINTS OR 126 EVEN ACCOUNTING FOR THE LOSSES POSTED IN THE PAST TWO SESSIONS 9401260017 940126 CLINTON TO DEMAND 66 BILLION TO AID QUAKE RECOVERY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL ASK CONGRESS FOR 66 BILLION IN EMERGENCY SPENDING FOR SOUTHERN CALIFORNIA ON TOP OF 900 MILLION THAT ALREADY HAS BEEN RELEASED FROM CONTINGENCY FUNDS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE MONEY WOULD GO TO REBUILD HIGHWAYS AND UTILITY SYSTEMS ASSIST SCHOOL DISTRICTS AFFECTED BY THE EARTHQUAKE PROVIDE VOUCHERS TO HELP DISPLACED PEOPLE FIND HOUSING AND TO PAY FOR FEDERAL EMERGENCY MANAGEMENT ADMINISTRATION OPERATIONS THIS IS A PRELIMINARY REQUEST AND IT'S BASED ON THE BEST ESTIMATES OF DAMAGES THAT WE HAVE AT THIS POINT MR PANETTA SAID PROMISING TO ADJUST THE REQUEST AS NEW INFORMATION IS RECEIVED THE BUDGET DIRECTOR SAID PROMPT CONGRESSIONAL ACTION IS NEEDED TO WAIVE A LAW THAT LIMITS FEDERAL SPENDING ON ANY DISASTER TO 100 MILLION PER STATE A LEVEL HE SAID MAY BE REACHED WITHIN 10 DAYS WHILE EXPRESSING GRATITUDE FOR THE WHITE HOUSE'S WILLINGNESS TO ACT QUICKLY CALIFORNIA GOV PETE WILSON SAID THE REQUEST SHOULD COME WITH A BIG WARNING THAT THE FINAL TAB COULD BE MUCH LARGER I AM VERY WARY OF CONGRESS ACTING ON THIS AND SAYING OK WE'VE DEALT WITH THAT CRISIS THAT'S ALL THERE IS' SAID GOV WILSON WHOSE RECESSIONWRACKED ADMINISTRATION WAS FACING A SEVERE BUDGET CRUNCH EVEN BEFORE THE EARTHQUAKE FOR MANY CALIFORNIA MANUFACTURERS THE EARTHQUAKE COULD WORSEN AN ALREADY TROUBLED SITUATION DUN & BRADSTREET INFORMATION SERVICES SAID YESTERDAY THAT IT CONSIDERED 52 OF FIRMS WITHIN A 40MILE RADIUS OF THE EARTHQUAKE'S LOS ANGELES EPICENTER TO BE IN HIGHRISK CATEGORIES OF FINANCIAL CONDITION EVEN BEFORE THE DISASTER THAT COMPARES TO AN AVERAGE OF BETWEEN 3035 NATIONWIDE THIS COULD MEAN A LONG AND TROUBLED RECOVERY FOR THESE BUSINESSES IF THEY CAN RECOVER AT ALL SAID DUN & BRADSTREET ECONOMIST DAVID T KRESGE 9401260016 940126 LETTERS TO THE EDITOR UNFAIR TREATMENT OF FLOOR TRADERS AS YOUR DEC 22 ARTICLE CFTC SUSPENDS THREE TRADERS CONVICTED AFTER STING OPERATION LACKED ANY COMMENT FROM THE PERSPECTIVE OF THE US FUTURES INDUSTRY WE ARE COMPELLED TO WRITE THIS LETTER ON BEHALF OF THE MEMBERS OF THE CHICAGO BOARD OF TRADE THE CBT IS ON RECORD WITH THE COMMODITY FUTURES TRADING COMMISSION AS BEING OPPOSED TO THE ACTION REFERRED TO IN THE ARTICLE THE MANNER IN WHICH THIS ACTION WAS TAKEN EVIDENCES THE COMMISSION'S GROSSLY UNFAIR TREATMENT OF THESE INDIVIDUALS AND HIGHLIGHTS A BUREAUCRATIC PROCESS THAT AMOUNTS TO REGULATORY OVERKILL THE INDIVIDUALS IN QUESTION ARE CURRENTLY SUBJECT TO CFTC ENFORCEMENT ACTIONS PENDING BEFORE THE COMMISSION ANY DECISION REGARDING THEIR FLOORTRADING STATUS SHOULD BE THE RESULT OF A CAREFUL DETAILED ANALYSIS AND FAIR JUDGMENT OF THE INDIVIDUAL SPECIFIC CONDUCT AT ISSUE THE CFTC'S ENFORCEMENT ACTION APPEAL SHOULD PROVIDE THAT PROCESS USE OF THE FLOOR TRADER DENIAL PROCESS WHILE ENFORCEMENT ACTIONS ARE PENDING AT THE CFTC IGNORES THE CRITICAL SPECIFIC CIRCUMSTANCES OF EACH INDIVIDUAL'S CASE AND DENIES THEM THE FUNDAMENTAL FAIRNESS TO WHICH THEY ARE ENTITLED IT SHOULD BE OBVIOUS TO ANYONE OF REASONABLE INTELLIGENCE AND FAIRNESS THAT THIS FLOOR TRADER REGISTRATION DENIAL AMOUNTS TO A JUDGMENT BY THE CFTC REGARDING THE STATUS OF THESE INDIVIDUALS AS FLOOR TRADERS WHILE THAT PRECISE ISSUE IS PENDING BEFORE THE COMMISSION IN THE ENFORCEMENT PROCEEDINGS THE CHICAGO BOARD OF TRADE FEELS IT IS MANIFESTLY UNFAIR FOR THE CFTC TO PREJUDGE THE FINAL DETERMINATION OF THESE ENFORCEMENT PROCEEDINGS THROUGH THE BACK DOOR MEANS OF DENYING FLOOR TRADER REGISTRATION STATUS 9401260015 940126 MARKETING LIGHT SMOOTH CHEAP NEW BIG BREWERS TRY TO TEMPT FICKLE TIGHTFISTED DRINKERS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL BEER DRINKERS ARE THIRSTING FOR NEW BRANDS AND LOW PRICES AND BREWERS ARE SERVING THEM JUST WHAT THEY WANT AS CONSUMERS EMBRACE SOME OF THE NEW BEERS THE NATION'S BIG BREWERS ARE PRODUCING THEIR PENNYPINCHING IS FORCING THE INDUSTRY TO KEEP A LID ON PRICES AND TO LOOK FOR MORE LUCRATIVE MARKETS OVERSEAS THE PAST YEAR'S PRESSURE ON PRICES WAS AS TOUGH AS I'VE EVER SEEN SAYS BILL HENRY PRESIDENT OF DETROIT'S STROH BREWERY CO IT MAY NOT HAVE SEEMED POSSIBLE BUT THE BEER MARKET GOT WORSE LAST YEAR FOR THE INDUSTRY'S BIG PLAYERS WHO PREDICT 1994 WILL BE JUST AS BAD WHAT GROWTH THERE HAS BEEN THE TOTAL US BEER MARKET INCREASED ONLY 02 IN 1993 AFTER YEARS OF LITTLE OR NO GROWTH HAS LARGELY GONE TO IMPORTS AND MICROBREWERY BEERS AS A GROUP THE BIGGEST BREWERS HAVE LOST MARKET SHARE FRANK WALTERS RESEARCH DIRECTOR OF IMPACT AN ALCOHOLICBEVERAGE INDUSTRY PUBLICATION ESTIMATES THAT WINE SALES LAST YEAR WERE DOWN BETWEEN 3 AND 4 AND THAT SALES OF DISTILLED SPIRITS DECLINED BETWEEN 1 AND 2 CONSUMERS MEANWHILE ARE CONTINUING TO SWITCH TO LIGHT BEER THEY ARE ALSO BUYING CHEAPER BEER MUCH OF IT FROM DISCOUNT SUPERMARKET CHAINS IN CALIFORNIA EVEN POPULARPRICED LABELS LIKE BUSCH AND OLD MILWAUKEE ARE SUFFERING CORPORATE RESPONSES TO THE TOUGH MARKETPLACE HAVE INCLUDED LOWERING PRICES INTENSIFYING BAR AND STORE PROMOTIONS AND MIMICKING ONE ANOTHER'S PRICE PROMOTIONS THE BREWERS' STRATEGY SAYS JERRY STEINMAN PUBLISHER OF BEER MARKETER'S INSIGHTS IS KILL THE OTHERS DON'T GIVE ANY OTHER COMPANY ANY ROOM TO MANEUVER OR CUT INTO YOUR VOLUME BREWERY EXECUTIVES SAY THEIR TOP STRATEGY FOR 1994 IS TO INTRODUCE NEW BRANDS TODAY'S CONSUMER IS INTERESTED IN NEW EXPERIENCES SAYS TOM SHARBAUGH VICE PRESIDENT OF BRAND MANAGEMENT AT ANHEUSERBUSCH COS THE NATION'S BIGGEST BREWER WHOSE MARKET SHARE FELL SLIGHTLY LAST YEAR DESPITE RECORD SALES THEY HAVE A NEWFOUND CURIOSITY ABOUT NEW TASTES AND THEY DEMAND VARIETY MILLER BREWING CO THE NO 2 BREWER AND A UNIT OF PHILIP MORRIS COS HAS BEEN THE MOST AGGRESSIVE IN INTRODUCING NEW PRODUCTS IN THE PAST FEW YEARS PERHAPS TAKING A LESSON FROM ITS HIGHLY SUCCESSFUL ROLLOUT OF MILLER GENUINE DRAFT IN THE LATE 1980S LAST YEAR THE COMPANY ADDED EXTENSIONS TO ITS MILLER RESERVE SPECIALTYBEER LINES AND INTRODUCED ICEHOUSE AN ICE BEER ICE BEERS PROMOTED AS SMOOTHER BREWS ARE PRODUCED BY CHILLING BEER UNTIL IT FORMS ICE CRYSTALS AND THEN REMOVING THOSE CRYSTALS NEW PRODUCTS WILL CONTINUE TO BE AN IMPORTANT ASPECT OF OUR FUTURE GROWTH SAYS RICHARD STRUP VICE PRESIDENT OF MARKETING AT MILLER MILLER WAS THE ONLY BIG BREWER TO INCREASE MARKET SHARE LAST YEAR A FEAT COMPANY OFFICIALS ATTRIBUTED TO THE ACQUISITION OF RIGHTS TO DISTRIBUTE CANADA'S MOLSON IN THE US THE SUCCESSFUL REPOSITIONING OF MILLER HIGH LIFE AS A LOWERPRICED BRAND AND NEWPRODUCT INTRODUCTIONS BUT THE COMPANY'S FLAGSHIP BRAND MILLER LITE LOST GROUND MILLER SAYS A MARKETING PLAN AIMED AT MAKING MILLER LITE RELEVANT TO A NEW GENERATION IS ON TRACK ANHEUSER'S ONLY NEW BEER IN 1993 WAS ICE DRAFT FROM BUDWEISER A BREW THE COMPANY THINKS WILL COMPETE AS MUCH IN THE CLEARBOTTLE PACKAGED DRAFT SEGMENT LED BY MILLER GENUINE DRAFT AS IN THE ICE SEGMENT MR SHARBAUGH SAYS THE COMPANY WILL INTRODUCE ANOTHER NEW BRAND IN MID1994 AND HAS A NUMBER OF PROMISING NEW PRODUCTS PERCOLATING HE SAYS COORS BREWING CO WHICH LAST WEEK ANNOUNCED PLANS TO LAUNCH ITS OWN ICE BEER COORS ARTIC ICE INTENDS TO INTRODUCE THIS YEAR A SPRING BOCK BEER A SUMMER WHEAT BREW AND AN OCTOBERFEST BEER AND ITS CLEAR MALT PRODUCT ZIMA CONTINUES TO ADD SALES BOB JOANIS VICE PRESIDENT OF NEWPRODUCT MARKETING FOR THE GOLDEN COLO UNIT OF ADOLPH COORS CO SAYS NEW BRANDS GIVE THE BREWER A CHANCE TO INTRODUCE HIGHERPRICED BEERS TO BALANCE OUT THE PRICE PROMOTIONS ON OLDER PRODUCTS BUT FOR COORS THE NATION'S THIRDLARGEST BREWER NEW BRANDS MAY ALSO BE A MATTER OF SURVIVAL SALES OF ITS TOP BREW COORS LIGHT GREW 24 LAST YEAR AND NOW ACCOUNT FOR 66 OF THE COMPANY'S TOTAL VOLUME AS A RESULT COORS IS THE MOST VULNERABLE SHOULD CONSUMERS' LOVE AFFAIR WITH LIGHT BEER BEGIN TO FADE IT'S THE ALL YOUR EGGS IN ONE BASKET' PROBLEM SAYS MR JOANIS A MULTIPLICITY OF BRANDS IS WHAT THE FUTURE IS ALL ABOUT STROH THE US INDUSTRY'S FOURTHLARGEST PLAYER INTENDS TO CONTINUE INTRODUCING SEASONAL BRANDS UNDER THE AUGSBERGER LABEL AND WILL ALSO LAUNCH BULL ICE A NEW MALT LIQUOR ICE BEER STROH'S SALES VOLUME DROPPED 93 LAST YEAR AS ITS POPULARPRICED BRANDS SUCH AS OLD MILWAUKEE SUFFERED FROM UNDERCUTTING BY EVEN LOWERPRICED BRANDS SUCH AS ANHEUSER'S NATURAL LIGHT WE HOPE THAT THINGS WILL STABILIZE THIS YEAR AND WE WON'T SEE AS MUCH OF THAT GOING ON SAYS STROH'S MR HENRY THE MAJOR BEER COMPANIES SAY THEIR NO 2 PRIORITY IS TO INCREASE FOREIGN SALES THE INTERNATIONAL BEER MARKET IS 3 1/2 TIMES BIGGER THAN THE US MARKET SAYS JACK PURNELL CHAIRMAN OF ANHEUSERBUSCH'S INTERNATIONAL UNIT US BREWERS NONETHELESS SAY INTERNATIONAL SALES AMOUNT TO ONLY A COUPLE OF PERCENTAGE POINTS OF THEIR BUSINESS THERE'S NOT A LOT OF OPPORTUNITY FOR GROWTH IN THE US ADDS MIKE MARRANZINO VICE PRESIDENT OF INTERNATIONAL OPERATIONS AT COORS THE BEVERAGE BUSINESS WORLDWIDE IS VIRTUALLY UNDEVELOPED IF YOU CAN PARTICIPATE IN JUST A FEW PLACES YOU HAVE REAL GROWTH OPPORTUNITY ANHEUSER HAS BEEN DEVELOPING PARTNERSHIPS WITH BREWERS IN OTHER COUNTRIES FOR 12 YEARS AND IN 1993 THE COMPANY CLOSED FOUR NEW INTERNATIONAL DEALS A 477 MILLION EQUITY INVESTMENT IN MEXICAN BREWER GRUPO MODELO SA A JOINT VENTURE WITH JAPAN'S KIRIN BREWERY CO WHICH WILL SELL BUDWEISER IN JAPAN A 5 EQUITY INVESTMENT IN TSINGTAO BREWERY CO CHINA'S LARGEST BREWER AND AN AGREEMENT WITH SPA BIRRA PERONI INDUSTRIALE OF ITALY FOR DISTRIBUTION OF BUDWEISER IN THAT COUNTRY STROH ALREADY SELLS IN ABOUT 50 COUNTRIES WHERE ITS BRANDS HAVE BEEN GROWING AT DOUBLEDIGIT RATES FOR THE PAST SEVEN YEARS SAYS MR HENRY HE SEES MEXICO AS A DIFFICULT MARKET BECAUSE OF DISTRIBUTION PROBLEMS BUT ONE WITH THE GREATEST POTENTIAL FOR AMERICAN BEERS THIS YEAR COORS WILL COMPLETE THE PURCHASE OF A BREWERY IN SPAIN AND THE CONSTRUCTION OF A BREWERY IN KOREA IN 1993 THE COMPANY ENTERED ITALY IRELAND AND EXPANDED ITS BUSINESS IN THE UNITED KINGDOM BRINGING ITS INTERNATIONAL MARKETS TO 20 MR MARRANZINO SEES INDIA CHINA AND SOUTH AMERICA AS THE GREATEST POTENTIAL MARKETS FOR EXPANSION AT HOME BEER PRICES AREN'T EXPECTED TO RISE THE BIG BREWERS WHILE HOPEFUL THAT THE SEVERE PRICE CUTTING OF 1993 IS INDEED A THING OF THE PAST NEVERTHELESS SAY THEY WILL MEET COMPETITORS' PRICES IN 1994 MILLER'S MR STRUP PLEDGES I'M GOING TO MAKE SURE WE MAINTAIN PRICE COMPETITIVENESS ACROSS THE COUNTRY 9401260014 940126 TECHNOLOGY STORAGE TECHNOLOGY FACES LAWSUIT FILED BY LIMITED PARTNERS BOULDER COLO A LIMITED PARTNERSHIP THAT FINANCED EARLY RESEARCH AND PRODUCT DEVELOPMENT AT STORAGE TECHNOLOGY CORP FILED A LAWSUIT IN A STATE COURT ALLEGING BREACH OF A 1991 SETTLEMENT AND SEEKING DAMAGES THE PARTNERSHIP FORMERLY STORAGE TECHNOLOGY PARTNERS II RAISED SOME 50 MILLION IN 1981 TO FINANCE RESEARCH IT SETTLED CLAIMS TO THE WORK IN 1991 BUT NOW SAYS STORAGE TECHNOLOGY IS USING THE BASIC TECHNOLOGY VIOLATING THE AGREEMENT THE SUIT FILED IN BOULDER COUNTY DISTRICT COURT CLAIMS SOFTWARE AND OTHER TECHNOLOGY RIGHTS AND SEEKS DAMAGES OF MORE THAN 14 BILLION A SPOKESMAN FOR STORAGE TECHNOLOGY LOUISVILLE COLO SAID THE SUIT IS WITHOUT MERIT THERE IS NO POSSIBILITY THAT OUR BUSINESS COULD BE AFFECTED IN ANY WAY BY THE PATENT CLAIMS INVOLVING STP II THE SPOKESMAN SAID ALL PATENTS CLAIMED BY STP II ARE FULLY CROSSLICENSED HE SAID THE PARTNERSHIP IS NOW CALLED STUFF TECHNOLOGY PARTNERS II AND ITS MANAGING GENERAL PARTNER IS OPTICAL TECHNOLOGY CORP OF DENVER SEPARATELY STORAGE TECHNOLOGY REPORTED FOURTHQUARTER NET INCOME OF 63 MILLION OR 8 CENTS A SHARE AFTER AN ACQUISITIONRELATED PRETAX CHARGE OF 49 MILLION COMPARED WITH A YEAREARLIER NET LOSS OF 10 MILLION OR 24 CENTS A SHARE FOURTHQUARTER REVENUE FELL TO 4002 MILLION COMPARED WITH 4213 MILLION IN THE YEAREARLIER PERIOD THE RESULTS WERE WELL ABOVE ANALYSTS' FORECASTS OF A LOSS OF 5 CENTS A SHARE HOWEVER STORAGE TECHNOLOGY SAID IT WOULD REPORT A LOSS IN THE FIRST QUARTER FOLLOWED BY IMPROVEMENT IN THE SECOND QUARTER THE EARNINGS WERE ANNOUNCED YESTERDAY AFTER THE END OF TRADING STORAGE TECHNOLOGY SHARES CLOSED AT 34125 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401260013 940126 ECONOMY US AND JAPAN ARE AT IMPASSE IN TRADE TALKS STANDSTILL RAISES POSSIBILITY PACT WON'T BE REACHED BY FEBRUARY'S SUMMIT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON USJAPAN TRADE TALKS REMAINED DEADLOCKED AFTER NEGOTIATORS WRAPPED UP TWO DAYS OF TALKS RAISING THE POSSIBILITY THAT THE TWO SIDES WON'T BE ABLE TO REACH AN ACCORD BEFORE A SUMMIT MEETING NEXT MONTH US OFFICIALS USED UNUSUALLY BLUNT LANGUAGE TO DESCRIBE THE DEADLOCK SAYING THEY HAD MANAGED ONLY MARGINAL PROGRESS IN SOME AREAS AND WERE AT AN IMPASSE ON OTHERS THE TWO SIDES ARE EXPECTED TO CONTINUE THE NEGOTIATIONS OVER THE SOCALLED FRAMEWORK TALKS LATE NEXT WEEK IN TOKYO THE US AND JAPAN WANT TO WRAP UP AN AGREEMENT IN TIME FOR A SUMMIT MEETING IN WASHINGTON FEB 11 BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA THE POLITICAL TURMOIL IN JAPAN HAS MADE THE ALREADY DIFFICULT TALKS EVEN TOUGHER ROBERT HORMATS A GOLDMAN SACHS & CO EXECUTIVE AND FORMER TRADE NEGOTIATOR LIKENED THE NEGOTIATIONS TO A GREEK TRAGEDY BECAUSE THE TWO SIDES ARE HEADING FOR COLLISION THAT BOTH CAN CLEARLY SEE BUT NEITHER CAN AVOID FOR THE US PRESIDENT CLINTON HAS MADE JAPAN HIS TOP TRADE PRIORITY AND IS COMMITTED TO WRESTING PLEDGES FROM JAPAN TO INCREASE IMPORTS THE US IS PRESSING JAPAN TO AGREE TO SPECIFIC TRADE TARGETS AND WAYS TO MEASURE PROGRESS TOWARD THOSE GOALS ANY RETREAT WOULD BE AN EMBARRASSING SETBACK FOR THE ADMINISTRATION FOR JAPAN ITS TRADE NEGOTIATORS HAVE TURNED THE TRADE FIGHT INTO A TEST OF NATIONAL WILL PORTRAYING JAPAN AS THE DEFENDER OF THE FREETRADE SYSTEM WITH THE US CAST AS THE BULLY MEANWHILE THE POLITICAL INSTABILITY HAS GIVEN GREATER POWER TO JAPANESE BUREAUCRATS WHO HAVE A BIG STAKE IN RESISTING COMPROMISE BECAUSE GREATER FOREIGN COMPETITION COULD DIMINISH THEIR POWER THE US HAS BEEN TRYING TO GET JAPANESE POLITICAL LEADERS INVOLVED ON THE THEORY THAT THEY WOULD PLACE GREATER EMPHASIS ON MAINTAINING CORDIAL RELATIONS WITH THE US THAN WOULD THE BUREAUCRATS BUT SO FAR THE POLITICAL LEADERS HAVE BEEN ABSORBED WITH THE DOMESTIC BATTLE OVER POLITICAL REFORM AND HAVE SHOWN NO SIGNS OF INTERCEDING 9401260012 940126 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ENSERCH CORP 150 MILLION OF NOTES DUE FEB 1 2004 PRICED AS 6375S AT 99671 TO YIELD 642 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS THE NOTES ARE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GENEVA STEEL CO 190 MILLION OF SENIOR NOTES DUE JAN 15 2004 PRICED AT PAR TO YIELD 95 THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC INDIANAPOLIS POWER & LIGHT CO 180 MILLION OF FIRST MORTGAGE BONDS IN TWO PARTS PRICED BY UNDERWRITERS LED BY DILLON READ & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 80 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2004 WAS PRICED AS 605S AT 99821 TO YIELD 6074 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 100 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2024 WAS PRICED AS 705S AT 99575 TO YIELD 7084 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED AA2 BY MOODY'S AND DOUBLEAMINUS BY S&P INDIANAPOLIS POWER & LIGHT IS A UNIT OF IPALCO ENTERPRISES INC NEWS AMERICA HOLDINGS INC 150 MILLION AUSTRALIAN DOLLARS US1054 MILLION OF DEBENTURES DUE FEB 7 2014 PRICED AT PAR TO YIELD 8625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP YPF SA 350 MILLION OF NEGOTIABLEOBLIGATION BONDS DUE FEB 15 2004 PRICED AS 8S AT 9977 TO YIELD 8033 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 232 BASIS POINTS ABOVE TREASURYS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC AMPALAMERICAN ISRAEL CORP FOUR MILLION UNITS PRICED AT 12125 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC EACH UNIT CONSISTS OF ONE SHARE OF ITS CLASS A STOCK AND ONE REDEEMABLE WARRANT TO PURCHASE ONE SHARE OF CLASS A COMMON STOCK CRISTALERIAS DE CHILE SA INITIAL PUBLIC OFFERING OF 37 MILLION AMERICAN DEPOSITARY SHARES PRICED MONDAY AT 23875 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HILITE INDUSTRIES INC INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES PRICED AT 9 APIECE THROUGH UNDERWRITERS LED BY FAHNESTOCK & CO HUGOTON ENERGY CORP INITIAL PUBLIC OFFERING OF THREE MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP KLA INSTRUMENTS CORP TWO MILLION SHARES PRICED AT 3150 APIECE IN AN OFFERING LED BY UNDERWRITERS KIDDER PEABODY & CO AND MORGAN STANLEY & CO SAN ANTONIO TEXAS 7811 MILLION SERIES 1994 ELECTRIC AND GASSYSTEM REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1997 TO 528 IN 2014 BONDS DUE IN 2001 AND 2006 ARE DERIVATIVES TOTALING 92 MILLION WHICH AREN'T FORMALLY REOFFERED MOODY'S HAS RATED THE BONDS DOUBLEA1 S&P HAS ASSIGNED A DOUBLEA RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED A DOUBLEAPLUS RATING WASHINGTON PUBLIC POWER SUPPLY SYSTEM 6743 MILLION SERIES 1994A REFUNDING BONDS FOR NUCLEAR PROJECT NO 2 PRICED BY A CS FIRST BOSTON INC GROUP INCLUDED IN THE ISSUE ARE 6691 MILLION CURRENTINTEREST BONDS YIELDS FOR REOFFERED BONDS RANGE FROM 3 IN 1995 TO 55 IN 2011 BONDS DUE IN 2001 AND 2006 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO BONDS DUE IN 2009 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP THE INSURED BONDS CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P UNINSURED BONDS HAVE DOUBLEA RATINGS FROM MOODY'S S&P AND FITCH THE 6691 MILLION PORTION OF THE OFFERING INCLUDES 50 MILLION OF AUCTIONRATE SECURITIES AND 50 MILLION OF INVERSE FLOATERS THOSE DERIVATIVES WHICH ARE UNINSURED ARE DUE IN 2012 THE 52 MILLION COMPOUNDINTEREST BONDS ARE PRICED TO YIELD 55 AT THEIR MATURITY IN 2009 THEY ARE INSURED BY FGIC AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1687 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1686 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 796 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 348 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1994G2 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 199428 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 695 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 125 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199426 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED 30YEAR 75 MORTGAGE SECURITIES FROM STRIPPED TRUST 254 ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 200 MILLION CANADIAN DOLLARS OF 675 EUROBONDS DUE FEB 25 2004 AT ISSUE PRICE 101355 VIA SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 99705 TO YIELD 679 MARGIN OF 26 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR ABBEY NATIONAL PLC FEES 2 BANCO DI NAPOLI LONDON BRANCH ITALIAN PARENT 150 MILLION OF FLOATINGRATE DEPOSITARY RECEIPTS DUE FEBRUARY 1999 AT ISSUE AND REOFFER PRICE 992 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT 15 BASIS POINTS OVER DOLLAR LONDON INTERBANK OFFERED RATE FEES 02 BANGKOK LAND LTD THAI PARENT 400 MILLION SWISS FRANCS OF PRIVATELY PLACED 3125 NOTES CONVERTIBLE INTO SHARES OF BANGKOK LAND PUBLIC CO DUE MAR 31 2001 AT PAR VIA NOMURA BANK SWITZERLAND NOTES EXCHANGEABLE FEB 21 TO MAR 16 2001 AT EXPECTED PREMIUM 5 TERMS TO BE FIXED JAN 31 FEES 2 BAYERISCHE LANDESANSTALT FUER AUFBAUFINANZIERUNG GERMANY 10 BILLION SPANISH PESETAS OF 78 MATADOR BONDS DUE FEB 11 2004 AT ISSUE PRICE 10145 VIA DEUTSCHE SAE AND BANCO DE NEGOCIOS ARGENTARIA SA BONDS YIELD 784 AT 997 COMANAGERS' BREAKEVEN PRICE FEES 1875 LESS 0125 FOR LEAD MANAGER BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 500 MILLION FRENCH FRANCS OF CAC 40 SYNTHETIC CONVERTIBLE EUROBONDS DUE FEB 25 2002 AT ISSUE PRICE PAR VIA CAISSE DES DEPOTS ET CONSIGNATIONS AND BAYERISCHE LB ISSUE SPLIT INTO CLASS A TRANCHE OF ZEROCOUPON NOTES AND CLASS B TRANCHE OF 225 NOTES TRANCHE SIZES UNDECIDED BONDS CONVERTIBLE INTO CASH AMOUNT EQUAL TO VALUE OF CAC 40 SHARES SUBJECT TO REDEMPTION FORMULAS MATURITY REDEMPTION AT HIGHER OF BONDS' NOMINAL VALUE OR CACF MULTIPLED BY CONVERSION PARITY CACF IS AVERAGE OF CAC 40 INDEX LEVEL ON JAN 28 2002 AND JAN 29 2002 AT FOUR DIFFERENT TIMES DAILY CONVERSION PARITY FOR TRANCHE A AT NOMINAL AMOUNT DIVIDED BY PRODUCT OF CACO MULTIPLIED BY 105263 CONVERSION PARITY FOR TRANCHE B AT NOMINAL AMOUNT DIVIDED BY PRODUCT OF CACO MULTIPLIED BY 125 CACO IS AVERAGE OF CAC 40 INDEX LEVEL ON JAN 27 AND JAN 28 AT FOUR DIFFERENT TIMES DAILY PUT OPTION FROM FEB 26 1995 TO JAN 24 2002 AT PRICE EQUAL TO CACT MULTIPLIED BY CONVERSION PARITY WHERE CACT IS PREVAILING LEVEL OF CAC 40 INDEX FEES UNDISCLOSED BEAR STEARNS COS US 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 22 2004 AT ISSUE AND REOFFER PRICE PAR VIA BEAR STEARNS INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT 0125 POINT BELOW SIXMONTH LIBOR MINIMUM COUPON 5125 FEES 0375 BRITISH OXYGEN CORP GROUP PLC UNITED KINGDOM 125 MILLION OF 675 EUROBONDS DUE FEB 18 2004 AT ISSUE PRICE 100915 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9929 TO YIELD 685 A MARGIN OF 57 BASIS POINTS OVER COMPARABLE UK GILT FEES 2 CREDIT LOCAL DE FRANCE FRENCH AGENCY 100 MILLION SWISS FRANCS OF 225 PUBLIC BONDS DUE MAR 16 2004 PRICED AT PAR WITH WARRANTS ATTACHED FOR PURCHASE DIVIDEND RIGHT CERTIFICATES IN ROCHE HOLDING AG VIA MERRILL LYNCH CAPITAL MARKETS AG NOTES EXERCISABLE FROM MAR 21 TO JAN 24 1996 INTO DIVIDEND CERTIFICATES STRIKE PRICE 7100 FRANCS AND EQUITY CONTENT 852 FEES 275 DANISCO AS DENMARK ONE BILLION DANISH KRONER OF CONVERTIBLE BONDS DUE FEB 21 2004 AT ISSUE PRICE PAR VIA SG WARBURG SECURITIES LTD INDICATED COUPON 5 TO 525 TERMS TO BE FIXED BY TODAY BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 16 TO 20 FROM FEB 21 TO FEB 6 2004 CALLABLE IN FOURTH AND FIFTH YEARS SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE THEREAFTER CALLABLE AT PAR FEES 25 HALIFAX BUILDING SOCIETY UK 75 MILLION OF FLOATINGRATE EURONOTES DUE FEB 25 1996 AT ISSUE AND REOFFER PRICE PAR VIA PARIBAS CAPITAL MARKETS LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 125 POINT SUBJECT TO THE FOLLOWING LIBOR RANGES 34 FIRST SIX MONTHS RISING TO 356 LAST SIX MONTHS FEES UNDISCLOSED ITOCHU FUEL CORP JAPAN 150 MILLION OF 15 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE FEB 17 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC TERMS TO BE FIXED FEB 1 WARRANTS EXERCISEABLE TO PURCHASE ORDINARY COMPANY SHARES AT INDICATED PREMIUM 25 FROM MARCH 3 TO FEB 3 1998 FEES 25 LESS 02 FOR LEAD MANAGER KEYNOTE US FLOATING LTD KEYNOTE US FIXED LTD AND KEYNOTE DM LTD SPECIALPURPOSE VEHICLES 150 MILLION OF COLLATERALIZED ENHANCEDYIELD NOTES DUE MARCH 2 2004 AT ISSUE PRICE 101 VIA CITIBANK INTERNATIONAL PLC AND CITIBANK AG REOFFERED AT PAR NOTES COLLATERALIZED ON SECURITIES ISSUED BY SUPRANATIONAL AND FINANCIAL INSTITUTIONS NOTES PAY FIXED MINIMUM COUPON WHICH DECLINES OVER LIFE OF NOTES FROM 1996 COUPON ENHANCEMENT PAID OUT OF CUMULATIVE NET GAINS ON TRADING ACCOUNT OPERATED BY KENMAR GLOBAL STRATEGIES INC UP TO MAXIMUM COUPON WHICH INCREASES OVER LIFE OF NOTES EXCESS NET GAINS ADDED TO REDEMPTION VALUE OF BONDS PUT OPTION EXERCISABLE ANNUALLY FROM SECOND ANNIVERSARY FINAL TERMS TO BE FIXED FEB 2 FEES UNDISCLOSED KEYNOTE US FLOATING LTD NOTES PAYABLE SEMIANNUALLY NORDIC INVESTMENT BANK SUPRANATIONAL 15 BILLION SWEDISH KRONOR OF 625 GLOBAL BONDS DUE FEB 8 1999 AT ISSUE AND REOFFER PRICE 99416 VIA MERRILL LYNCH BONDS YIELD 639 MARGIN OF 11 BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES 0375 9401260011 940126 BUSINESS BRIEF AZTEC MANUFACTURING CO COMPANY SEES YEARLY PROFIT DOUBLING YEARAGO FIGURE AZTEC MANUFACTURING CO SAID IT EXPECTS EARNINGS OF 38 CENTS TO 40 CENTS A SHARE FOR ITS YEAR ENDING FEB 28 ABOUT DOUBLE THE YEAREARLIER RESULTS FOR THE YEAR ENDED FEB 28 1993 THE CROWLEY TEXAS ELECTRICAL PRODUCTS CONCERN REPORTED NET INCOME OF 11 MILLION OR 20 CENTS A SHARE ON SALES OF 308 MILLION LC MARTIN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER TOLD SECURITIES ANALYSTS IN NEW YORK THAT THE PROFIT RISE WAS DUE TO THE COMPANY'S MOVE INTO CERTAIN ELECTRICAL PRODUCTS NICHE MARKETS MR MARTIN ALSO SAID HE WOULD ASK AZTEC'S BOARD TO CONSIDER PAYING A CASH DIVIDEND AT SOME LEVEL NEAR THE END OF THE FISCAL YEAR AZTEC PAID A 25CENTASHARE QUARTERLY DIVIDEND BEFORE SUSPENDING PAYMENTS IN MID1993 9401260010 940126 BUSINESS BRIEF CARPENTER TECHNOLOGY CORP DEBENTURE REDEMPTION PLAN TO CAUSE 3RDPERIOD CHARGE CARPENTER TECHNOLOGY CORP SAID IT WILL REDEEM 553 MILLION OF HIGHCOUPON DEBT AND TAKE A CHARGE AGAINST EARNINGS OF 19 MILLION OR 24 CENTS A SHARE IN THE FISCAL THIRD QUARTER ENDING MARCH 31 TO COVER THE REDEMPTION PREMIUM IN THE YEAREARLIER THIRD QUARTER THE READING PA MAKER OF SPECIALTY STEELS AND STEEL ALLOYS HAD NET INCOME OF 102 MILLION OR 122 A SHARE RESTATED TO REFLECT ACCOUNTING CHANGES ADOPTED IN THE FOURTH QUARTER SALES WERE 1554 MILLION THE REDEMPTION WILL COVER THE ENTIRE OUTSTANDING PRINCIPAL AMOUNT OF THE COMPANY'S 12 7/8 SINKING FUND DEBENTURES DUE 2014 THE REDEMPTION PRICE WILL BE 106162 PER 1000 PRINCIPAL AMOUNT THE REDEMPTION DATE IS MARCH 1 FUNDING WILL COME FROM THE COMPANY'S CURRENT CREDIT FACILITIES OR THROUGH ISSUANCE OF MEDIUMTERM NOTES CARPENTER RECENTLY FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE UP TO 100 MILLION OF MEDIUMTERM NOTES REDEMPTION AGENT IS MORGAN GUARANTY TRUST CO 9401260009 940126 REVIEW & OUTLOOK EDITORIAL DICK TRACY WINS NOT ALL THAT LONG AGO CHESTER GOULD THE AUTHOR OF THE DICK TRACY COMIC STRIP BECAME SOMETHING OF A PARIAH IN THE WORLD OF AMERICAN LIBERALS BECAUSE HE ALWAYS DEPICTED CAPTURED CRIMINALS WAILING I DEMAND MY CONSTITUTIONAL RIGHTS DICK TRACY'S VIEW OF CRIMINALS AS WELL CRIMINALS WAS LAUGHED AND LITIGATED OUT OF THE AMERICAN SYSTEM AS HOPELESSLY CONSERVATIVE INSTEAD WE WOULD SEEK MORE SOCIAL JUSTICE TO BALANCE CRIMINAL JUSTICE BUT ALONG THE WAY THE SCALES TIPPED OVER WE ARE WRITING THESE WORDS JUST A FEW HOURS BEFORE A LIBERAL PRESIDENT IS TO GO BEFORE THE NATION IN HIS STATE OF THE UNION ADDRESS AND ACCORDING TO NEWS REPORTS CALL FOR PUTTING 100000 POLICE ON THE STREETS PUTTING THREETIME FELONS IN PRISON FOREVER AND PUTTING BAD BOYS IN BOOT CAMPS IT LOOKS LIKE WE'RE ALL DICK TRACYS NOW AN AWFUL LOT OF INNOCENT AMERICANS HAVE HAD TO BE ROBBED BEATEN STABBED RAPED TORTURED AND MURDERED TO ARRIVE AT THE POINT WHERE A BILL CLINTON COULD FEEL COMPELLED TO GET TOUGH ON CRIME THE GOOD NEWS IS THAT THE AMERICAN SYSTEM MOST OF THE TIME IS ABLE TO BRING OFF A MIDCOURSE CORRECTION BEFORE THE TRAIN GOES OVER THE CLIFF PUBLIC FURY OVER VIOLENT CRIME IS OF COURSE CAUSING THE POLITICIANS TO ACT BUT THERE DOES SEEM TO BE A SCHOOL OF LIBERAL THOUGHT ON CRIME WHICH HOLDS THAT IF WE ENACT GUNCONTROL LAWS LIKE THE BRADY BILL WE'LL HAVE PRETTY MUCH DECAPITATED THE CRIME PROBLEM DREAM ON THE MOST RECENT WALL STREET JOURNAL/NBC NEWS POLL SUGGESTS THAT THE PUBLIC IS NOT THAT CONFUSED MOST PEOPLE RECOGNIZE WE HAVE TO DO SOMETHING ABOUT THE PEOPLE WHO PULL THE TRIGGERS TOO ASKED THIS MONTH ABOUT PUTTING HIGHER FEES ON GUN DEALERS TREASURY SECRETARY BENTSEN'S IDEA 18 SAID IT'D MAKE A MAJOR DIFFERENCE RAISING TAXES ON AMMUNITION SENATOR MOYNIHAN ATTRACTS 17 NOW LET'S GET SERIOUS ABOUT CRIME IT'D MAKE A MAJOR DIFFERENCE IF TOUGHEN THE PENALTIES FOR JUVENILES 73 SEND THEM TO BOOT CAMPS 62 CAPITAL PUNISHMENT FOR MORE CRIMES 64 LIFE FOR THREETIME FELONS 76 NO DOUBT PEOPLE CAN HAVE SERIOUS CONVERSATIONS ABOUT THE IMPLEMENTATION DETAILS BEHIND THIS GALEFORCE PUBLIC OUTCRY BUT THE DIRECTION IS CLEAR ENOUGH ONE IMPORTANT DETAIL THAT OCCURS TO US IS FEDERAL JUDICIAL APPOINTMENTS WE HOPE SOMEONE ASKS THE PRESIDENT AND THE PEOPLE WHO ADVISE HIM ON THESE APPOINTMENTS WHETHER THEY WILL SEEK A FEDERAL JUDICIARY OR SUPREME COURT THAT AGREES WITH MR CLINTON'S STATE OF THE UNION VIEWS ON CRIMINAL JUSTICE OUR STRONG IMPRESSION IS THAT A LOT OF CIVILIAN LIBERALS ARE ON BOARD FOR LESS SOCIAL AND MORE JUSTICE IN THIS AREA BUT THAT THEIR RELATIVES IN THE LAW SCHOOLS AND LEGAL COMMUNITY STILL DON'T HAVE A CLUE FOR THEM AN EXTRA 100000 POLICE WILL SIMPLY CAUSE AN EXPONENTIAL INCREASE IN DISMISSALS FOR POLICE ERROR BUT A CORNER HAS BEEN TURNED WE'LL SEE WHETHER THE POLITICAL SYSTEM IS RESPONSIVE ENOUGH TO MAKE THAT CORNER SAFE AGAIN HOW BIG A DIFFERENCE WOULD THE FOLLOWING BE 9401260008 940126 BUSINESS BRIEF VIEWLOGIC SYSTEMS INC SOFTWARE COMPANY SAYS NET ROSE SHARPLY IN 4TH QUARTER VIEWLOGIC SYSTEMS INC EXPECTS TO REPORT SHARPLY HIGHER FOURTHQUARTER NET INCOME OF 49 MILLION OR 30 CENTS A SHARE ON A 49 JUMP IN REVENUE TO 293 MILLION ALAIN HANOVER PRESIDENT AND CHIEF EXECUTIVE SAID IN AN INTERVIEW MR HANOVER ALSO SAID THE MARLBOROUGH MASS SOFTWARE MAKER WOULD GROW AGAIN THIS YEAR BY TWO AND A HALF TO THREE TIMES THE 10 ANNUAL GROWTH RATE THAT ANALYSTS PREDICT FOR THE REST OF THE ELECTRONICDESIGN SOFTWARE MARKET IN THE YEARBEFORE FOURTH QUARTER EARNINGS WERE 34 MILLION OR 23 CENTS A SHARE BEFORE A NONRECURRING CHARGE OF 14 MILLION RELATED TO AN ACQUISITION REVENUE WAS 197 MILLION VIEWLOGIC'S SOFTWARE IS USED BY AUTOMOBILE SEMICONDUCTOR AND COMPUTER MAKERS TO BUILD ELECTRONIC CIRCUITS IT ALLOWS THEM TO DESIGN THESE CIRCUITS WITHOUT BUILDING PROTOTYPES 9401260006 940126 MEDICINE NEW WEAPON IN GENE THERAPY MAY BE A SWITCH THAT TELLS CELLS WHEN TO FIGHT BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A BIOLOGIST AND A CHEMIST MAY HAVE FOUND A WAY TO INSTALL A BIOLOGICAL SWITCH IN HUMAN CELLS THAT COULD TURN GENES ON AND OFF AS NEEDED THE DISCOVERY MAY OPEN A NEW WAY TO TREAT HUMAN ILLS WITH GENE THERAPY IN EXISTING GENE THERAPY A PATIENT'S CELLS ARE REMOVED IMPLANTED WITH A GENE THAT TELLS CELLS TO MANUFACTURE A PROTEIN THAT HELPS FIGHT OR RESIST DISEASE AND THEN REINTRODUCED TO THE BLOODSTREAM BUT NOW RESEARCHERS ARE TALKING ABOUT A NEW ERA OF REGULATED GENE THERAPY IN WHICH ONE PILL SWITCHES ON A PROTEINMAKING GENE AND THEN A SECOND PILL TURNS IT OFF IT MAY BE POSSIBLE FOR EXAMPLE FOR A DIABETIC TO GET AN INFUSION OF CELLS ENGINEERED WITH THE GENE SWITCH AND THE INSULIN GENE THEN INSTEAD OF TAKING SEVERAL INJECTIONS OF INSULIN A DAY THE PATIENT COULD TAKE NONTOXIC PILLS TO SWITCH THE INSULIN GENE ON AND OFF AS NEEDED CHEMOTHERAPY FOR CANCER MAY SOMEDAY BE A MATTER OF TAKING A PILL TO SWITCH ON POISONMAKING GENES IN CELLS THAT HAVE BEEN DESIGNED TO HOME IN ON A TUMOR LAST WEEK ARIAD PHARMACEUTICALS INC A FLEDGLING BOSTON BIOTECHNOLOGY COMPANY ANNOUNCED THAT IT HAD LICENSED THE TECHNOLOGY IT'S THE FIRST TIME ANYONE HAS BEEN ABLE TO REGULATE GENE EXPRESSION SAYS ARIAD PRESIDENT HARVEY BERGER WHO PREDICTS THAT THE FIRST HUMAN EXPERIMENTS USING THE NEW TECHNIQUE MIGHT BEGIN AS EARLY AS NEXT YEAR THE INVENTION BY CHEMIST STUART L SCHREIBER OF HARVARD UNIVERSITY AND BIOLOGIST GERALD R CRABTREE OF STANFORD UNIVERSITY HAS BEEN STIRRING ENTHUSIASM AMONG BIOLOGISTS GENE THERAPISTS AND BIOTECHNOLOGY RESEARCHERS MICHAEL BLAESE CHIEF OF CLINICAL GENE THERAPY RESEARCH AT THE NEW NATIONAL CENTER FOR HUMAN GENOME RESEARCH IN BETHESDA MD NOTES THAT THE PROBLEM WITH CURRENT GENE THERAPY IS THAT THE IMPLANTED GENE FUNCTIONS CONTINUOUSLY SUPPLYING FOR INSTANCE A CHILD WITH A MISSING PROTEIN TO AVERT MENTAL RETARDATION BUT MANY GENES IN THE BODY SUCH AS THE ONE FOR INSULIN OR FOR VARIOUS HORMONES WORK ONLY INTERMITTENTLY HE EXPLAINS THE NEW GENESWITCH TECHNIQUE OFFERS GENE THERAPY A REALLY UNIQUE SET OF TOOLS THE RESEARCHERS ARE EVEN DESIGNING A FAIL SAFE SWITCH THAT WILL CAUSE THE GENETICALLY ENGINEERED CELLS TO SELFDESTRUCT IF THEY MALFUNCTION CAUSE UNWANTED SIDE EFFECTS OR HAVE SIMPLY FINISHED THEIR JOB THE INVENTION HINGES ON THE WORKINGS OF CELL RECEPTORS SPECIALIZED PROTEINS ON OR NEAR THE CELL'S SURFACE THESE RECEPTORS ARE DESIGNED TO GRAB HOLD AND REACT TO CHEMICAL SIGNALS DRIFTING BY IN THE BLOODSTREAM EACH PROTEIN RECEPTOR REACTS TO ONE PARTICULAR CHEMICAL SIGNAL AND NO OTHER WHEN A RECEPTOR IS TRIPPED BY A PASSING CHEMICAL IT LAUNCHES A TRAIN OF SIGNALS THAT REACH INTO THE NUCLEUS OF THE CELL WHERE THE GENES RESIDE THE SIGNALS TELL THE CELL TO START READING THE MESSAGE WRITTEN IN A PARTICULAR GENE INSTRUCTIONS TO BEGIN MAKING A CERTAIN PROTEIN FOR INSTANCE A RISING CONCENTRATION OF GLUCOSE IN THE BLOOD TRIPS A RECEPTOR THAT TURNS ON THE INSULIN GENE IN CERTAIN CELLS IN THE PANCREAS GLAND DRS SCHREIBER AND CRABTREE CREATED A SYNTHETIC RECEPTOR DERIVED FROM ONE FOUND IN WHITE BLOOD CELLS CALLED TCELLS THAT HELPS FIGHT OFF INVASIONS OF FOREIGN TISSUES THE TCELL RECEPTOR CONSISTS OF SEVERAL IDENTICAL BUT SEPARATE PROTEINS THAT HANG SIDE BY SIDE JUST BELOW THE CELL SURFACE THE RECEPTOR LIES DORMANT UNTIL SOME CHEMICAL PERMEATES THE CELL AND LINKS TWO OR MORE OF THE PROTEINS TOGETHER THIS LINKING TELLS A GENE IN THE TCELL TO BEGIN MAKING PROTEINS THAT LAUNCH AN ATTACK AGAINST SAY A TRANSPLANTED KIDNEY WHAT INTRIGUED THE TWO SCIENTISTS ABOUT THIS TCELL RECEPTOR WAS THAT A MOLECULE OF A JAPANESE DRUG FK506 WILL BIND TO ONE OF THE RECEPTOR'S PROTEINS AND PREVENT IT FROM LINKING UP TO A NEIGHBORING PROTEIN THE DRUG THUS BLOCKS THE RECEPTOR FROM TURNING ON ITS GENE WHICH EXPLAINS WHY IT IS SO EFFECTIVE IN PREVENTING THE REJECTION OF TRANSPLANTED ORGANS THE TWO SCIENTISTS FIGURED OUT HOW TO USE FK506 TO ACTIVATE THE RECEPTOR AND TURN ON THE GENE THEY WELDED MOLECULES OF FK506 TO OPPOSITE ENDS OF A LINKER MOLECULE TO CREATE A KIND OF DUMBBELLSHAPED MOLECULE DUBBED FK1012 DR SCHREIBER EXPLAINS WHEN FK1012 SEEPS INTO A CELL WITH THE RECEPTOR ONE END WILL BIND TO ONE RECEPTOR PROTEIN AND THE OTHER END TO A NEIGHBORING PROTEIN THEREBY CREATING THE LINK THAT ACTIVATES THE RECEPTOR AND TURNS ON THE GENE THE SCIENTISTS CAN PACKAGE THE COMPONENTS NEEDED TO MAKE THE RECEPTOR INTO A GENE CASSETTE ALONG WITH A GENE OF INTEREST WHICH CONTROLS THE RELEVANT PROTEIN PRODUCTION THE CASSETTE CAN THEN BE SPLICED INTO WHOLE CELLS SUCH AS TCELLS WHENEVER THE RESEARCHERS WANT TO TURN ON THE GENE OF INTEREST THEY MERELY ADD A LITTLE FK1012 TO TURN IT OFF THEY ADD A MODIFIED VERSION OF FK506 THE TRICK SAYS DR SCHREIBER HAS WORKED IN TEST TUBES NEXT WE'LL TRY TO INTRODUCE THE SYSTEM IN SIMPLE ORGANISMS LIKE THE FRUIT FLY OR A NEMATODE HE SAYS A LITTLE WAY DOWN THE ROAD WE'LL PUT IT INTO MICE FOR THEIR OWN BASIC RESEARCH DRS SCHREIBER AND CRABTREE SAY THEY INTEND TO INSERT A PARTICULAR GENE AND THE SWITCH INTO MICE AND THEN TURN THE GENE ON OR OFF AT ANY STAGE OF A MOUSE'S DEVELOPMENT FROM EMBRYO TO ADULTHOOD TO SEE WHAT THE GENE DOES FOR HUMAN THERAPY ARIAD ENVISIONS TAKING A PATIENT'S OWN TCELLS AND IN THE TEST TUBE INSERTING THE SYNTHETIC RECEPTOR AND A GENE OF INTEREST INTO THE CELLS THE CELLS ARE RETURNED TO THE PATIENT WHO TAKES A PILL OF FK1012 OR SOME SIMILAR DRUG WHENEVER HE NEEDS TO TURN THE GENE ON AND A PILL OF FK506 TO TURN IT OFF THE SYNTHETIC RECEPTOR WOULD ALSO GIVE GENE THERAPISTS A FAILSAFE SWITCH NATURE HAS PROGRAMMED ALL CELLS TO DIE WHENEVER THEIR ROLE IN LIFE IS FINISHED THE RESEARCHERS HOPE TO INSTALL A SECOND SYNTHETIC RECEPTOR IN THE GENE CASSETTE THEN WHEN THE CELLS HAVE COMPLETED THEIR GENE THERAPY OR IF SOMETHING SHOULD GO WRONG A SIMPLE PILL COULD SWITCH ON THE APOPTOSIS SIGNALS AND THE CELLS WOULD COMMIT SUICIDE 9401260005 940126 US FORCE IN SOUTH KOREA MAY GET PATRIOT MISSILES WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING SHIPPING PATRIOT AIRDEFENSE MISSILES TO BOLSTER US FORCES IN SOUTH KOREA THE MOVE IS BEING WEIGHED TO OFFSET RECENT MOVEMENTS OF ARTILLERY AND MISSILES BY NORTH KOREA TO AREAS NEAR ITS BORDER WITH THE SOUTH PATRIOT MISSILES WHICH WERE USED TO HELP DEFEAT THE THREAT OF IRAQI SCUD MISSILES IN THE PERSIAN GULF WAR WERE WITHDRAWN EARLIER FROM SOUTH KOREA US FORCES STATIONED NEAR THE NORTH KOREAN BORDER AND SEOUL THE SOUTH KOREAN CAPITAL ARE PARTICULARLY VULNERABLE TO MISSILE ATTACKS SEOUL IS WITHIN 28 MILES OF THE BORDER WELL WITHIN RANGE OF NORTH KOREA'S ARTILLERY 9401260003 940126 RULE OF LAW REBIRTH OF THE IVY CARTEL BY HERSCHEL GROSSMAN THE RECENT DECISION BY THE JUSTICE DEPARTMENT TO DROP ITS ANTITRUST CASE AGAINST THE IVY LEAGUE COLLEGES AND MIT SHOWS THE POLITICAL CLOUT OF OUR ELITE EDUCATIONAL INSTITUTIONS IT ALSO MEANS THAT THESE COLLEGES WILL BE ABLE TO COLLUDE AGAIN TO RESTRICT FINANCIAL AID AND TO DENY UNDERGRADUATES THE BENEFITS OF MERIT SCHOLARSHIPS FIRST SOME HISTORY ALMOST 40 YEARS AGO THE EIGHT COLLEGES IN THE IVY GROUP BROWN COLUMBIA CORNELL DARTMOUTH HARVARD PENNSYLVANIA PRINCETON AND YALE TOGETHER WITH MIT FORMED A CARTEL TO LIMIT COMPETITION FOR DESIRABLE STUDENTS SUCH STUDENTS ARE GENERALLY UNDERGRADUATES WHO HAVE EXCEPTIONAL ACADEMIC ARTISTIC OR ATHLETIC TALENT OR WHO ARE FROM HISTORICALLY UNDERREPRESENTED RACIAL AND ETHNIC GROUPS THE MEMBERS OF THE CARTEL AGREED NOT TO AWARD MERIT SCHOLARSHIPS TO UNDERGRADUATES INSTEAD THEY AGREED TO GIVE FINANCIAL AID THAT IS TO DISCOUNT THE TUITION OF UNDERGRADUATES ONLY ON THE BASIS OF NEED TO ENFORCE THIS AGREEMENT THE IVY COLLEGES AND MIT HELD AN ANNUAL MEETING CALLED OVERLAP AT WHICH THEY DECIDED ON THE DOLLAR AMOUNTS OF FINANCIAL AID THAT THEY PLANNED TO OFFER INDIVIDUAL STUDENTS FOR DECADES THIS CARTEL FUNCTIONED OPENLY AND WITHOUT LEGAL CHALLENGE BUT IN 1991 THE JUSTICE DEPARTMENT BROUGHT AN ANTITRUST ACTION AGAINST THE IVY COLLEGES AND MIT FOR COLLUDING TO FIX TUITION CHARGES THE EIGHT IVY COLLEGES QUICKLY ENTERED INTO A CONSENT DECREE THAT TERMINATED OVERLAP MIT HOWEVER DECIDED TO LITIGATE LAST MONTH APPARENTLY UNDER STRONG POLITICAL PRESSURE THE JUSTICE DEPARTMENT CAPITULATED THE SETTLEMENT BETWEEN JUSTICE AND MIT ALLOWS COLLEGES TO PARTICIPATE IN COOPERATIVE FINANCIAL AID ARRANGEMENTS THE COLLEGES CAN AGREE TO PROHIBIT MERIT SCHOLARSHIPS AND EXCHANGE INFORMATION TO COORDINATE THEIR NEEDBASED FINANCIAL AID THE JUSTICE DEPARTMENT IS ALSO AGREEABLE TO AMENDING THE 1991 IVY CONSENT DECREE TO INCLUDE THE TERMS OF THE MIT SETTLEMENT THE SETTLEMENT'S ONLY SUBSTANTIAL RESTRICTION IS THAT THE PARTICIPANTS MUST PRACTICE NEEDBLIND ADMISSIONS WHICH MEANS THAT THEY MUST MAKE ADMISSIONS DECISIONS WITHOUT CONSIDERING WHICH APPLICANTS NEED FINANCIAL AID THEY MUST ALSO GIVE EACH ADMITTED APPLICANT ALL THE FINANCIAL AID THAT HE OR SHE NEEDS MIT AND ALL THE IVY COLLEGES EXCEPT BROWN ALREADY CLAIM TO SATISFY THESE CONDITIONS IN DEFENDING THEIR CARTEL MIT AND THE IVY COLLEGES ARGUE THAT THEY ARE ALREADY BUDGETING ABOUT THE MAXIMUM AMOUNT OF MONEY FOR FINANCIAL AID THAT THEY CAN AFFORD HENCE IF COMPETITION WERE TO FORCE THEM TO OFFER MERIT SCHOLARSHIPS THEY WOULD HAVE TO DECREASE FINANCIAL AID TO NEEDY STUDENTS THIS ARGUMENT IS SPECIOUS THE RICHEST IVY COLLEGES HARVARD YALE AND PRINCETON HAVE SUBSTANTIALLY LARGER INCOME FROM ENDOWMENTS AND ANNUAL GIFTS THAN THE OTHER IVY COLLEGES AND MIT BUT THE RICHEST COLLEGES DEVOTE A SMALLER FRACTION OF THEIR GROSS REVENUE TO FINANCIAL AID FOR UNDERGRADUATES THIS ANOMALY SUGGESTS THAT COLLUSION ENABLES THE RICHER PARTICIPANTS TO GIVE LESS FINANCIAL AID THAN THEY WOULD GIVE UNDER COMPETITION IT ALSO SUGGESTS THAT THE RICHEST COLLEGES HAVE NOT BEEN BUDGETING THE MAXIMUM AFFORDABLE AMOUNT TO UNDERGRADUATE FINANCIAL AID THEY COULD INCREASE SIGNIFICANTLY THE AMOUNT OF FINANCIAL AID THAT THEY GIVE TO UNDERGRADUATES SIMPLY BY DEVOTING TO UNDERGRADUATE FINANCIAL AID THE SAME FRACTION OF GROSS REVENUE AS DO SOME OF THE POORER COLLEGES MIT AND THE IVY COLLEGES WANT US TO BELIEVE THAT THEIR COSTS OF PROVIDING AN UNDERGRADUATE EDUCATION CANNOT BE REDUCED IN ORDER TO FREE UP FUNDS FOR ADDITIONAL FINANCIAL AID BUT THE COSTS OF THESE COLLEGES AND OF OTHER NOTFORPROFIT ENTERPRISES ARE ARTIFICIALLY INFLATED THE NOTFORPROFIT DESIGNATION ALLOWS COLLEGES TO KEEP THEIR BOOKS IN SUCH A WAY THAT THEY REPORT NO PROFITS BUT THIS BOOKKEEPING CONTRIVANCE DOESN'T MEAN THAT COLLEGES DON'T EARN WHAT AN ECONOMIST WOULD PROPERLY CALL PROFITS RATHER IT MEANS THAT THEY INCLUDE IN WHAT THEY CALL THEIR COSTS SOME AMOUNTS THAT ARE REALLY PROFITS IN FACT PRIVATE COLLEGES FUNCTION SIMILARLY TO PRODUCER COOPERATIVES OR PARTNERSHIPS THE PARTNERS IN THIS CASE THE FACULTY AND ADMINISTRATORS SHARE ANY EXCESS REVENUE OVER TRUE COSTS IN THE FORM OF GENEROUS COMPENSATION AND PERQUISITES ONE HAS TO CONCLUDE THAT THE IVY COLLEGES AND MIT COULD CONTINUE GENEROUS NEEDBASED FINANCIAL AID EVEN IF THEY WERE ALSO OFFERING MERIT SCHOLARSHIPS BUT WOULD THEY DO SO NOT NECESSARILY IT IS POSSIBLE THAT THEY WOULD REDUCE NEEDBASED FINANCIAL AID IF COMPETITION FOR DESIRABLE STUDENTS INTENSIFIED AND MERIT SCHOLARSHIPS DEPRESSED NET TUITION REVENUE BUT THIS OUTCOME IF IT WERE TO OCCUR WOULD NOT HAVE BEEN FORCED ON THE COLLEGES RATHER IT WOULD RESULT FROM THEIR CHOICE TO REDUCE NEEDBASED FINANCIAL AID RATHER THAN TO CUT COSTS WHAT WOULD BE THE SOCIAL CONSEQUENCES OF REPLACING NEEDBASED FINANCIAL AID WITH MERIT SCHOLARSHIPS IN DEFENDING ITS SETTLEMENT WITH MIT THE JUSTICE DEPARTMENT STRESSED THE VALUE OF NEEDBASED FINANCIAL AID IN ENHANCING EQUAL OPPORTUNITY BUT NEEDBASED FINANCIAL AID ALSO HAS THE UNDESIRABLE EFFECT OF REDUCING THE INCENTIVE FOR FAMILIES TO MAKE THEIR OWN PROVISIONS FOR PAYING COLLEGE TUITION THE LARGER A FAMILY'S INCOME AND SAVINGS AND THE FEWER CHILDREN IT HAS THE SMALLER THE AMOUNT OF NEEDBASED FINANCIAL AID FOR WHICH IT QUALIFIES IN THIS WAY NEEDBASED FINANCIAL AID PENALIZES INDUSTRIOUS AND THRIFTY FAMILIES WHO HAVE WORKED SAVED AND LIMITED FAMILY SIZE IN ORDER TO BE ABLE TO PAY TO SEND THEIR CHILDREN TO COLLEGE IN SHORT NEEDBASED FINANCIAL AID ENCOURAGES SENSIBLE FAMILIES TO BE IMPRUDENT ACCORDING TO THIS ANALYSIS IT IS NOT SURPRISING THAT THE SAVINGS OF MOST MIDDLEINCOME FAMILIES ARE INADEQUATE FOR THEM TO PAY TO SEND THEIR CHILDREN TO THE IVY COLLEGES AND MIT OR THAT APPLICANTS FROM MIDDLEINCOME FAMILIES NEED MORE AND MORE FINANCIAL AID RESPONDING TO THE INCENTIVES CREATED BY NEEDBASED FINANCIAL AID PERHAPS MIDDLEINCOME FAMILIES HAVE COME TO REGARD SAVING TO SEND CHILDREN TO COLLEGE AS POINTLESS AND FOOLISH MERIT SCHOLARSHIPS WOULD HELP TALENTED APPLICANTS FROM MIDDLECLASS FAMILIES WHO DO NOT QUALIFY FOR NEEDBASED FINANCIAL AID AND WOULD ALSO MEAN MORE GENEROUS FINANCIAL AID FOR TALENTED APPLICANTS FROM POOR FAMILIES WITH THE UNDERGRADUATE FINANCIAL AID BASED ON MERIT FINANCIAL AID WOULD NOT BE A REWARD FOR BEING POOR AS IT OFTEN IS NOW RATHER IT WOULD BE A PRIZE AVAILABLE TO ANY APPLICANT WHO RANKS AT THE TOP OF THE APPLICANT POOL MR GROSSMAN IS A PROFESSOR OF ECONOMICS AT BROWN UNIVERSITY 9401260002 940126 CREDIT MARKETS ARGENTINE OIL COMPANY'S YANKEEBOND OFFERING DRAWS STRONG INTEREST DESPITE MARKET JITTERS BY LAUREN YOUNG AND THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE WORRIES ABOUT POLITICAL INSTABILITY IN OTHER DEVELOPING NATIONS INVESTORS SNAPPED UP A YANKEEBOND OFFERING FROM ARGENTINA'S YACIMIENTOS PETROLIFEROS FISCALES SA IN FACT INVESTORS HAD A NUMBER OF OFFERINGS FROM FOREIGN ISSUERS TO CHOOSE FROM YESTERDAY INCLUDING A 15 BILLION SWEDISH KRONA 186 MILLION GLOBALBOND OFFERING FROM SWEDEN'S NORDIC INVESTMENT BANK AND A 150 MILLION AUSTRALIAN DOLLAR US1047 MILLION YANKEE BOND OFFERING FROM NEWS AMERICA HOLDINGS A UNIT OF NEWS CORP GLOBAL BONDS ARE DESIGNED TO BE SOLD AND TRADED IN ALL THE WORLD'S MAJOR MARKETS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US MEANWHILE THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND DROPPED MORE THAN 1/2 POINT TO 98 22/32 YIELDING 634 COMPARED WITH 630 ON MONDAY YPF AS THE ARGENTINE OIL COMPANY IS KNOWN SOLD 350 MILLION OF 10YEAR NOTES WITH AN 8 COUPON AT A PRICE OF 9977 TO YIELD 8033 THE NOTES WERE SOLD THROUGH LEAD MANAGER CS FIRST BOSTON INC THE NOTES WERE PRICED WITH AN EXTREMELY NARROW YIELD SPREAD OVER COMPARABLE US TREASURYS CONSIDERING THEIR RATING YPF'S DEBT IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE SAME AS THE REPUBLIC OF ARGENTINA HOWEVER YPF'S OFFERING WAS PRICED AT A NARROWER YIELD THAN A RECENT ARGENTINIAN GOVERNMENT NOTE OFFERING BECAUSE MANY INVESTORS BELIEVE THE COMPANY DESERVES A HIGHER RATING THAN THE COUNTRY SYNDICATE OFFICIALS SAID MOODY'S AND S&P POLICIES STATE THAT A COMPANY CANNOT BE RATED HIGHER THAN THE COUNTRY WHERE IT IS BASED PRECLUDING A HIGHER RATING FOR YPF IT'S A STELLAR COMPANY IT WOULD PROBABLY BE A STRONG DOUBLEA CREDIT IF IT WERE RATED IN THE US SAID ANTHONY VAN DAALEN COPORTFOLIO MANAGER AT WARBURG PINCUS FIXED INCOME FUND WHO BOUGHT INTO THE DEAL THE YPF BONDS WERE PRICED AT A SPREAD OF 232 PERCENTAGE POINTS ABOVE 10YEAR TREASURYS NOTES ARGENTINA'S 8 3/8 COUPON GLOBAL NOTES MATURING IN 2003 WERE YIELDING 242 PERCENTAGE POINTS ABOVE THAN 10YEAR TREASURY NOTES YESTERDAY MORE THAN 90 ACCOUNTS BOUGHT INTO YPF'S BOND OFFERING A SYNDICATE OFFICIAL SAID EVEN ASIAN AND EUROPEAN INVESTORS WHO TYPICALLY PREFER SHORTERTERM SECURITIES BOUGHT INTO THE DEAL ANOTHER SYNDICATE OFFICIAL SAID MORE THAN HALF OF THE DEMAND WAS FROM WHAT WE CALL INVESTMENTGRADE BUYERS EVEN THOUGH THIS WAS NOT INVESTMENTGRADE DEAL SAID RICHARD DUBUSC MANAGING DIRECTOR OF CS FIRST BOSTON'S CORPORATE SYNDICATE THE OFFERING ALSO BENEFITED FROM YPF'S WELLKNOWN NAME AND INVESTOR FOLLOWING THERE IS CLEARLY CASH IN THIS NAME ONE DEVELOPINGNATION DEBT TRADER SAID WITH A SLIM NEWISSUE CALENDAR INVESTORS QUICKLY SNAPPED UP THE BONDS AND THE OFFERING WAS REPORTEDLY MORE THAN TWOTIMES OVERSUBCRIBED YESTERDAY MORNING NORDIC INVESTMENT BANK'S FIVEYEAR BONDS WERE PRICED WITH A 625 COUPON AT 99416 TO YIELD 639 RATED TRIPLEA BY MOODY'S AND S&P THE BONDS WERE SOLD THROUGH LEAD MANAGER MERRILL LYNCH & CO LATE YESTERDAY NEWS AMERICA HOLDINGS' A150 MILLION OF 20YEAR BONDS WAS SOLD AT PAR TO YIELD 8625 ACCORDING TO MCM CORPORATEWATCH THE OFFERING IS THE LONGESTTERM AUSTRALIANDOLLAR ISSUE EVER SOLD THE NONCALLABLE ISSUE IS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ALTHOUGH THE GOVERNMENT'S AUCTION OF NEW TWOYEAR NOTES DREW HEALTHY BIDDING YESTERDAY IT WAS NOT ENOUGH TO SPARK CONTINUED BUYING AND DISAPPOINTED TRADERS SENT PRICES OF US TREASURY NOTES AND BONDS LOWER AS A RESULT HELPING TO DEPRESS PRICES WERE CONCERNS OVER THE PROSPECTS FOR TODAY'S FIVEYEAR NOTE AUCTION AND DATA SUGGESTING THAT THE COLD WEATHER AND THE SOUTHERN CALIFORNIA EARTHQUAKE MAY NOT HAVE SLOWED RETAIL SALES AS MUCH AS EXPECTED BOND INVESTORS WELCOME NEWS OF SLUGGISH ECONOMY BECAUSE IT MEANS LESS INFLATION INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE PRICE OF THE 30YEAR TREASURY BOND DROPPED MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE OTHER TREASURY SECURITIES POSTED SMALLER LOSSES THE 10YEAR NOTE DROPPED 1/4 POINT TO 100 TO YIELD 573 COMPARED WITH 570 ON MONDAY MOST OF YESTERDAY'S ACTIVITY CENTERED ON THE TREASURY'S AUCTION OF 17 BILLION IN NEW TWOYEAR NOTES THE TREASURY AWARDED THE NOTES AT A YIELD OF 411 A TOUCH HIGHER THAN SOME HAD PREDICTED BUT STILL WITHIN THE RANGE OF EXPECTATIONS THE DETAILS OF THE AUCTION RESULTS SHOWED FAIRLY GOOD INTEREST MARKETWATCHERS SAID FOR THE TWOYEAR NOTES THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE RECEIVED WAS DESCRIBED AS SOLID AT 285 TO 1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET DEALER COMMUNITY WERE 822 MILLION LATE YESTERDAY REFLECTING THE LACK OF STRONG DEMAND AFTER THE AUCTION THE WHENISSUED TWOYEAR NOTE YIELDED 412 COMPARED WITH 409 BEFORE THE RESULTS WERE RELEASED INVESTORS SOLD NOTES AND BONDS IN RESPONSE TO DATA SHOWING THE ECONOMY MAY HAVE HELD UP BETTER THAN EXPECTED FOLLOWING THE COLD SPELL AND THE EARTHQUAKE THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED THAT CHAIN AND DEPARTMENT STORE SALES FOR THE THREE WEEKS ENDED JAN 22 WERE UP 13 FROM DECEMBER'S PACE THAT COMPARED WITH A 35 RISE FOR THE FIRST TWO WEEKS AND AS PRICES ERODED IN LATE AFTERNOON TRADING DEALERS BEGAN TO SELL AHEAD OF TODAY'S SCHEDULED 12 BILLION FIVEYEAR NOTE AUCTION AFTER THE MARKET'S DISSAPOINTING PERFORMANCE YESTERDAY TRADERS SAID THEY WERE NERVOUS ABOUT THE PROSPECTS FOR THE FIVEYEAR NOTE AUCTION IN WHENISSUED TRADING LATE YESTERDAY THE FIVEYEAR YIELDED 509 UP FROM 507 MONDAY ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JAN 31 1994 AND MATURE JAN 31 1996 MUNICIPALBOND BUYERS FEASTED ON THE BIG ISSUES FROM SAN ANTONIO AND THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM THERE WASN'T MUCH BUYING IN SECONDARY DEALINGS HOWEVER AND PRICES ENDED UNCHANGED TO 1/4 POINT LOWER THE GOLDMAN SACHS & CO GROUP THAT PRICED SAN ANTONIO'S 7811 MILLION ELECTRIC AND GAS SYSTEM REFUNDING BONDS WAS ABLE TO REPRICE THE OFFERING AND LOWER SOME YIELDS 002 TO 005 POINT FOLLOWING THE REPRICING YIELDS RANGED FROM 350 IN 1997 TO 528 IN 2014 THE SAN ANTONIO ISSUE INCLUDES 92 MILLION OF DERIVATIVES THERE IS 359 MILLION OF FLOATINGRATE BONDS BASED ON THE LONDON INTERBANK OFFERED RATE THE REMAINING 561 MILLION COMPRISES STANDARD FLOATINGRATE AND INVERSEFLOATER SECURITIES WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 6743 MILLION OF REFUNDING BONDS FOR NUCLEAR PROJECT NO 2 ALSO ATTRACTED MUCH INTEREST FOLLOWING A REPRICING AT WHICH SOME YIELDS WERE LOWERED 005 POINT YIELDS RANGE FROM 300 IN 1995 TO 550 IN 2009 AND 2011 THE WPPSS OFFERING INCLUDES 100 MILLION OF FLOATINGRATE AND INVERSEFLOATER DERIVATIVES DUE IN 2012 SAN ANTONIO'S REFUNDING BONDS HAVE A DOUBLEA1 RATING FROM MOODY'S INVESTORS SERVICE INC A DOUBLEA FROM STANDARD & POOR'S CORP AND A DOUBLEAPLUS FROM FITCH INVESTORS SERVICE INC UNINSURED REFUNDING BONDS SOLD BY WPPSS THIS SESSION HAVE DOUBLEA RATINGS FROM MOODY'S S&P AND FITCH SOME MARKET PARTICIPANTS OBSERVED THAT SAN ANTONIO'S LATEST BONDS HAVE YIELDS THAT ARE AS MUCH AS 035 POINT LOWER THAN WPPSS BONDS WITH THE SAME MATURITIES EVEN THOUGH RATINGS FOR THE SECURITIES ARE QUITE CLOSE BOTH ISSUES FARED WELL HOWEVER MORTGAGE SECURITIES ENDED WITH SLIM PRICE DECLINES BUT PURCHASES OF SECURITIES AS COLLATERAL FOR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND OTHER BUYING LENT SUPPORT TO THE MARKET THE 6 1/2 SECURITIES FOR FEBRUARY DELIVERY FELL 5/32 IN SECONDARY DEALINGS GINNIE MAES ENDED AT 99 30/32 FREDDIE MAC GOLDS AT 100 1/32 AND FANNIE MAES AT 99 27/32 MEANWHILE DEALERS WERE COLLECTING COLLATERAL FOR NEW REMICS IN THE 15 AND 30YEAR SECTORS KEEPING A FLOOR UNDER PRICES BANKS WERE BIG BUYERS OF THREE TO FIVEYEAR PLANNED AMORTIZATION REMICS MORE THAN 25 BILLION OF REMICS WERE ANNOUNCED WITH FIVE NEW DEALS AND THE INCREASE OF AN OFFER OUTSTANDING THE LARGEST WAS A 1 BILLION FEDERAL NATIONAL MORTGAGE ASSOCIATION SERIES 1995G2 DEAL BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 SECURITIES AND UNDERWRITTEN BY KIDDER PEABODY & CO THE MARKET FOR GINNIE MAE 6 ADJUSTABLERATE MORTGAGE SECURITIES MEANWHILE HAS BEEN ROILED IN THE PAST FEW WEEKS BY ONE OR TWO FIRMS THAT REPORTEDLY BOUGHT MOST OF THE BONDS AND BID UP THE PRICE TRADERS DECLINED TO NAME THE BUYERS THE PRACTICE OF BUYING AND HOLDING THE BULK OF A MORTGAGE SECURITY CAUSES DEALERS TO SCRAMBLE FOR BONDS BEFORE THE PRICE ESCALATES THE SECURITIES MOST RECENTLY AFFECTED WERE FOR JANUARY DELIVERY 9401260001 940126 MARKETING & MEDIA ADVERTISING AMTRAK HOPES NEW ADS PERSUADE VACATIONERS TO BOARD THE TRAIN BY KEVIN GOLDMAN THINK OF VACATION TRAVEL AND AMTRAK PROBABLY DOESN'T COME TO MIND INSTEAD MOST AMERICANS MAY ASSOCIATE THE PASSENGER RAILROAD WITH A SIMPLER TIME WHEN TRAVELING THE COUNTRY BY RAIL SEEMED EXOTIC AND ROMANTIC SO IN A NEW PRINT CAMPAIGN BEGINNING THIS WEEK AMTRAK IS PLAYING ON THAT NOSTALGIA IT IS EMBRACING THE PERSONA OF A KINDLY OLD RELATIVE THAT MANY HAVE FOND MEMORIES OF BUT WANT LITTLE TO DO WITH ANYMORE A SERIES OF SIX DOUBLEPAGE ADS FROM OMNICOM GROUP'S DDB NEEDHAM ASKS SUCH QUESTIONS AS HAS THE ART OF CONVERSATION BEEN FOUND ON A TRAIN AND WOULD CHILDHOOD BE A CHILDHOOD WITHOUT A TRAIN RIDE AND IF YOU'VE NEVER TAKEN THE TRAIN WHAT EXACTLY HAVE YOU MISSED THE OBJECTIVE OF THE ADS IS TO MAKE CONSUMERS CONSIDER AMTRAK AS A SERIOUS OPTION FOR VACATION TRAVEL AMTRAK'S OWN RESEARCH SHOWED THAT AMONG THE THOUSANDS OF INDIVIDUALS INTERVIEWED AMTRAK DECLINES TO PROVIDE THE EXACT NUMBER ONLY ABOUT 25 MENTIONED THE TRAIN WHEN LISTING CHOICES FOR TRAVEL INVOLVING MORE THAN 100 MILES AMTRAK'S PRINT CAMPAIGN WHICH WILL APPEAR IN SUCH MAGAZINES AS TIME PEOPLE LIFE LADIES HOME JOURNAL EBONY AND BETTER HOMES & GARDENS IS VERY DIFFERENT FROM MOST TRAVEL ADVERTISING WHILE THE AGGRESSIVE ADS FOR MANY AIRLINES EMPHASIZE PRICE THE NEW AMTRAK ADS DON'T EVEN MENTION PRICES OR SCHEDULES INSTEAD THEY DESCRIBE SLEEPING CARS THAT FEATURE COTTON SHEETS AND BIG FLUFFY PILLOWS THEY TUG AT MEMORIES RECALLING THE WHISTLE TELLING THE WORLD YOU WERE COMING ONE AD HEADLINED CAN A TRAIN HOLIDAY IMPROVE YOUR LOVE LIFE CLAIMS A TRAIN TRIP WILL SEND YOUR LOVE LIFE INTO ORBIT YOU SWOON OVER SCENERY YOU LEARN FROM A NATIVEAMERICAN GUIDE ABOUT THE LEGEND OF THE LOVELORN MAIDEN OF THE ROCK A TRAIN TRIP IS LIKE ONE LONG FASCINATING DATE YOU WATCH THE MOVIE AND THEN THE STARS AND THEN WELL THAT'S YOUR BUSINESS AMTRAK SAYS IT WILL SPEND 30 MILLION ON ADVERTISING DURING ITS CURRENT FISCAL YEAR ENDING SEPT 30 THE SAME AMOUNT IT SPENT DURING ITS PAST FISCAL YEAR BUT MORE MONEY WILL BE ALLOCATED TO MAGAZINE ADVERTISING THE NOSTALGIA APPROACH WILL EVENTUALLY BE SEEN IN AMTRAK'S TELEVISION COMMERCIALS AS WELL THE CAMPAIGN BREAKS AT A TIME WHEN CONSUMER CONFIDENCE IN AMTRAK HAS BEEN SOMEWHAT SHAKEN SAYS WILLIAM WITHUHN TRANSPORTATION CURATOR AT THE SMITHSONIAN INSTITUTION IN WASHINGTON MR WITHUHN'S CANDID ASSESSMENT FOLLOWS A SERIES OF ACCIDENTS INCLUDING ONE LAST SEPTEMBER IN ALABAMA THAT KILLED 43 PASSENGERS MAKING IT THE WORST IN THE RAILROAD'S 23YEAR HISTORY JUST LAST MONTH SOME 63 PASSENGERS WERE INJURED WHEN AN AMTRAK TRAIN DERAILED NEAR KISSIMMEE FLA BUT SAFETY WAS NEVER CONSIDERED TO BE INCLUDED IN THE ADS SAYS JOAN WHEATLEY AMTRAK'S DIRECTOR OF ADVERTISING AND SALES PROMOTION TRAIN TRAVEL IS AS SAFE IF NOT SAFER THAN ANY OTHER MODE OF TRANSPORTATION WE DIDN'T WANT TO HANG AN AD CAMPAIGN ON SAFETY ISSUES AMTRAK SAYS IT WILL STILL USE ITS WELLWORN SLOGAN ALL ABOARD AMTRAK ON SOME ADS BUT THE MAIN SLOGAN IS THERE'S SOMETHING ABOUT A TRAIN THAT'S MAGIC DAMIAN O'MALLEY EXECUTIVE VICE PRESIDENT AND DIRECTOR OF ACCOUNT PLANNING AT DDB NEEDHAM SAYS THAT IN THE NEW ADS AMTRAK HAD TO TRUMPET ITSELF AS MORE THAN A MEANS OF TRANSPORTATION WE NEEDED TO FIND REASONS FOR RELEVANCY HE SAYS TRAIN TRAVEL IS UNIQUE IT IS GREAT FOR CARRYING ON A CONVERSATION TO MAINTAIN DIGNITY THAT ONE HAS TROUBLE MAINTAINING WHEN TRAVELING BY BUS PLANE OR CAR AMTRAK'S RIDERSHIP HAS SHOWN LITTLE GROWTH IN THE '90S IN FISCAL 1993 AMTRAK CARRIED 221 MILLION PASSENGERS UP 4 FROM FISCAL 1992 WHEN IT REPORTED RIDERSHIP OF 213 MILLION THAT WAS DOWN 3 FROM FISCAL 1992 WHEN IT CARRIED 22 MILLION PASSENGERS HOPEFULLY AMTRAK WILL GET THE BUDGET IT NEEDS FROM THE PRESIDENT TO KEEP UP ITS MAINTENANCE AND FIX SOME EQUIPMENT SAYS MR WITHUHN THE ADS ARE NICE NOW AMTRAK HAS TO DELIVER WITH COMFORTABLE RIDES MARKETING EXPERTS ARE SPLIT OVER WHETHER THE AMTRAK CAMPAIGN IS EFFECTIVE ADVERTISING CLAY TIMON PRESIDENT AND CHIEF EXECUTIVE OF LANDOR ASSOCIATES A DESIGN AND IDENTITYMANAGEMENT COMPANY BASED IN SAN FRANCISCO SAYS HE LOVES THE ADS CALLING THEM A PERFECT RESPONSE TO THE HECTIC CRASS AND INYOURFACE ADVERTISING FROM THE AIRLINES MR TIMON WHO SAW EACH PRINT AD SAYS HE DOESN'T BELIEVE AMTRAK IS TAKING A BIG RISK BY AVOIDING THE MENTION OF PRICING IN THESE COSTCONSCIOUS TIMES BY TAKING A DIFFERENT APPROACH HE SAYS AMTRAK IS GOING TO STAND OUT FROM ALL THE PRICE SHOUTING AMTRAK CAN'T COMPETE ON QUICKNESS SO IT IS TRYING TO COMPETE ON THE QUALITY ASPECTS OF TRAVELING BUT HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON NJ SAYS THAT ALTHOUGH THE ADS ARE INTERESTING THERE ARE SOME PROBLEMS FOR INSTANCE HE SAYS READERS HAVE TO WADE THROUGH TOO MUCH WRITTEN MATERIAL BEFORE FINDING OUT THE BENEFITS OF TAKING THE TRAIN AMTRAK SHOULD SPELL OUT THE ADVANTAGES MUCH FASTER SAYS MR ROSS WHO ALSO SAW EACH AD THESE ADS REQUIRE TOO MUCH WORK ON THE PART OF THE CONSUMER AND ASK TOO MUCH OF THEIR PATIENCE THAT IS A VIRTURE THAT IS FINE FOR TRAIN TRAVELING BUT NOT SO MUCH FOR READING AN ADVERTISEMENT PEPSICO'S PEPSICOLA CO IS USING ITS FOUR MINUTES OF SUPER BOWL ADVERTISING TIME SUNDAY TO BREAK NEW ADS FOR PEPSICOLA AND LIPTON ICED TEA STARRING A STANDINGROOMONLY CREW OF CELEBRITY ENDORSERS MICHAEL RICHARDS KRAMER ON SEINFELD APPEARS IN ONE SPOT ALONG WITH VETERAN PITCHWOMAN CINDY CRAWFORD WHO TURNS INTO RODNEY DANGERFIELD AFTER A SPELL IN A PEPSI DEPRIVATION TANK A SECOND SPOT DEPICTING A WOODSTOCK REVIVAL STARS A DIFFERENT GENRE OF CELEBRITY MEMBERS OF THE OLD ROCK BAND JEFFERSON AIRPLANE AND SINGER JOHN SEBASTIAN MINGLE WITH A CROWD OF HIPPIESTURNEDYUPPIES CREATED BY OMNICOM GROUP'S BBDO THE COMMERCIALS CONTINUE TO END WITH THE COMMAND TO BE YOUNG HAVE FUN DRINK PEPSI MARTIALARTS ACTOR DAVID CARRADINE PARODIES HIS KUNG FU TELEVISION SERIES IN A LIPTON ICEDTEA SPOT CREATED BY WPP GROUP'S J WALTER THOMPSON PEPSI ALSO IS AIRING PREVIOUSLY SEEN SPOTS FEATURING BASKETBALL PLAYER SHAQUILLE O'NEAL FOR PEPSI AND BO JACKSON FOR LIPTON ICED TEA A SIXTH SPOT FROM PEPSICOLA'S INTERNATIONAL DIVISION ALSO IS SET TO AIR ALTHOUGH PEPSI ISN'T SAYING MUCH ABOUT THAT ONE BEYOND THE FACT THAT IT INVOLVES CHIMPS ACCOUNT AS EXPECTED GRAND METROPOLITAN'S BURGER KING NAMED THREE NEW YORK FINALISTS IN THE CREATIVE REVIEW OF ITS BIG NATIONAL ACCOUNT AMMIRATI & PURIS INTERPUBLIC GROUP'S LOWE & PARTNERS/SMS AND EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER VYING FOR THE MEDIA PORTION ARE WPP GROUP'S OGILVY & MATHER DEWITT MEDIA AND THE INCUMBENT ON THE ACCOUNT D'ARCY MASIUS BENTON & BOWLES WHO'S NEWS PAUL MEIJER CREATIVE DIRECTOR OF YOUNG & RUBICAM'S AMSTERDAM OFFICE WAS NAMED CREATIVE DIRECTOR OF THE WORLDWIDE AGENCY OVERSEEING NEW TECHNOLOGIES INCLUDING INTERACTIVE ADS AT Y&R OFFICES IN THE NEW POST MR MEIJER 41 YEARS OLD WILL BE BASED IN NEW YORK AND WILL REPORT TO TED BELL Y&R VICE CHAIRMAN 9401250168 940125 A CONGRESSIONAL REPORT CARD BY PAUL S HEWITT WITH CONGRESS SET TO RECONVENE THIS WEEK NOW IS PERHAPS A GOOD TIME TO CHECK ON THE SPENDING HABITS OF OUR FEDERAL LEGISLATORS FIRST THE GOOD NEWS IN THE FIRST SESSION OF THE 103RD CONGRESS THERE WAS AN EXPLOSION OF SPENDINGREDUCTION LEGISLATION LED BY FRESHMEN AND SECONDTERM MEMBERS BILLS TO CUT SPENDING ARE IN FACT ALMOST THREE TIMES MORE NUMEROUS IN THE 103RD CONGRESS THAN THEY WERE AT THE HALFWAY POINT OF THE 102ND YET CONGRESS IS UNLIKELY TO BALANCE THE BUDGET ANYTIME SOON ON AVERAGE LEGISLATORS ARE SPONSORING MORE NET NEW SPENDING THAN IN THE LAST CONGRESS MEANWHILE MOST OF THEIR PROPOSED SPENDING CUTS WERE IN THE FORM OF ACROSSTHEBOARD MEASURES THAT SET SPENDING TARGETS BUT FAILED TO SPECIFY WHICH PROGRAMS TO CUT THIS EVASIVE ACTION SUGGESTS THAT MANY WOULDBE BUDGET CUTTERS HAVE YET TO COME TO GRIPS WITH THE DEVILISH DETAILS OF REINING IN FEDERAL SPENDING SINCE 1991 THE NATIONAL TAXPAYERS UNION HAS KEPT A COMPREHENSIVE RUNNING TALLY OF THE COST OF SPENDING LEGISLATION BEFORE CONGRESS CALLED THE CONGRESSIONAL BUDGET TRACKING SYSTEM BELOW ARE THE WINNERS FOR THE 103RD CONGRESS SO FAR THE TOTALS FOR INDIVIDUAL MEMBERS WERE DEVELOPED BY CROSSINDEXING EACH MEMBER'S SPONSORSHIP AND COSPONSORSHIP RECORDS WITH COST ESTIMATES FOR 492 SENATE BILLS AND 897 HOUSE BILLS INTRODUCED BETWEEN JAN 5 1993 WHEN THE 103RD'S FIRST SESSION BEGAN AND NOV 22 WHEN IT ENDED COST ESTIMATES ARE OBTAINED FROM SPONSORS THE CONGRESSIONAL BUDGET OFFICE AND OTHER SOURCES THE NATIONAL TAXPAYERS UNION OFFERS EACH MEMBER AN OPPORTUNITY TO CORRECT HIS OR HER SPONSORSHIP RECORD BEFORE THE RESULTS ARE PUT INTO FINAL FORM AND YET EACH TIME SPENDING SURVEYS HAVE BEEN PUBLISHED THIS IS THE SEVENTH SURVEY SINCE 1991 THE UNION IS FLOODED WITH DOZENS OF LETTERS AND FAXES FROM MEMBERS OF CONGRESS UNDERSTANDABLY EAGER TO GET THEIR SPENDING TOTALS DOWN IN MANY CASES LAWMAKERS SEEK TO DISSOCIATE THEMSELVES FROM BILLS THAT THEY HAD EARLIER SPONSORED REP KWEISI MFUME'S LETTER EXCERPTED NEARBY CAME IN RESPONSE TO OUR MIDNOVEMBER SURVEY AND SHOWS HIM ENDING HIS SPONSORSHIP OF A SINGLEPAYER HEALTH BILL HR1200 AMONG OTHERS REP BILL PAXON WANTS TO ADD TO HIS SPONSORSHIPS OF COURSE THE BILLS HE MENTIONS ARE FOR SPENDING REDUCTION MR HEWITT IS VICE PRESIDENT FOR RESEARCH OF THE NATIONAL TAXPAYERS UNION THE TOP 50 SENATORS AND CONGRESSMEN RANKED ACCORDING TO THE TOTAL COST OF THE BILLS THEY HAVE SPONSORED OR COSPONSORED IN THE 103RD CONGRESS WHICH RECONVENES TODAY TOTALS ARE ROUNDED TO THE NEAREST BILLION 9401250167 940113 REGULATORY CHOKEHOLD OSHA TO BUSINESS SLOW DOWN YOU WORK TOO FAST BY EUGENE SCALIA TODAY IN LOS ANGELES CALIFORNIA'S OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD OPENS HEARINGS TO CONSIDER REQUIRING BY LAW THAT EMPLOYERS IN THE STATE ADJUST THEIR WORK PACE THE ADJUSTMENT CALOSHA HAS IN MIND IS DOWNWARD TO THOSE SURPRISED TO FIND THE NOLONGERSOGOLDEN STATE GIRDING TO REQUIRE ITS REMAINING BUSINESSES TO DO LESS WELCOME TO THE SAFETY AND HEALTH JUGGERNAUT THAT IS ERGONOMICS ERGONOMISTS DEFINE THEIR DISCIPLINE AS THE STUDY OF WORKERS' RELATION TO THEIR ENVIRONMENT ERGONOMIC MEASURES ARE THE FAVORED SOLUTION TO CARPAL TUNNEL SYNDROME AND OTHER CUMULATIVE TRAUMA DISORDERS CTDS PURPORTEDLY CAUSED BY REPETITIVE FORCEFUL MOTIONS AT WORK THE CALOSHA HEARINGS RESULT FROM THE STATE ASSEMBLY'S REQUIREMENT THAT AN ERGONOMICS RULE BE ADOPTED TO MINIMIZE THE INSTANCES OF INJURY FROM REPETITIVE MOTION A SIMILAR MANDATE IS PENDING IN CONGRESS WHERE LABOR SECRETARY ROBERT REICH HAS TESTIFIED THAT CTDS ARE THE OCCUPATIONAL DISEASES OF THE INFORMATION AGE THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALREADY HAS PROMISED A DRAFT STANDARD BY FALL AND FOR SEVERAL YEARS NOW IT HAS BEEN PROSECUTING COMPANIES UNDER THE FEDERAL ACT'S GENERAL DUTY CLAUSE SO FOR INSTANCE FED OSHA HAS CHARGED THAT RISK OF DEATH OR SERIOUS PHYSICAL HARM LURKS IN THE HAND MOTIONS THAT PRODUCE PEPPERIDGE FARM'S DELIGHTFUL MILANO COOKIES ERGONOMICS' APPEAL LIES IN ITS UNQUESTIONABLE PREMISE AND ITS EQUALLY UNQUESTIONABLE AND UNQUESTIONABLY ATTRACTIVE CONCLUSION THE PREMISE HARD WORK IS TIRING AND SOMETIMES UNCOMFORTABLE EVEN PAINFUL THE CONCLUSION WORK LESS AND YOU'LL FEEL BETTER WHY I'VE EXPERIENCED THE VERY THING MYSELF THOUGH USUALLY PACKAGED IN PSEUDOSCIENTIFIC JARGON ERGONOMISTS' REMEDIES REFLECT A SIMILAR ROUGH COMMON SENSE CTDS THE THEORY GOES ARE THE PRODUCT OF REPETITION FORCE AND POSTURE TO CURE THEM REDUCE REPETITIONS ADJUST THE WORK PACE HIRE SEVEN EMPLOYEES TO DO THE WORK OF FIVE GIVE EMPLOYEES FREQUENT REST PERIODS AS FOR FORCE LESSEN IT BY DROPPING THE WEIGHT OF WHAT EMPLOYEES PRESS LIFT AND CARRY REDESIGN THE WORKSTATION TO IMPROVE EMPLOYEES' POSTURE ALL OF THESE MEASURES ARE EITHER EXPRESSED OR IMPLIED IN THE PROPOSED CALIFORNIA STANDARD THEY ARE TO BE TAKEN BY EMPLOYERS TO AN INDETERMINATE EXTENT ON A FINDING OF SUCH CTD SYMPTOMS AS PAIN FROM MOVEMENT THE MEASURES ALREADY ARE BEING DEMANDED BY FEDERAL AND STATE OSHA REGULATORS IN CASES LIKE THAT AGAINST PEPPERIDGE FARM NOR IS THIS THE LIMIT OF ERGONOMISTS' AGENDA FOR THEY HAVE IN STORE FOR EMPLOYEES A STILL GREATER FREEDOM UNEMPLOYMENT OSHA INSPECTORS MAY NOT BE ENGINEERS THEY MAY NOT BE PHYSICIANS BUT THEY CAN SURELY RECOGNIZE THAT IF A GIVEN OPERATION REQUIRED NO WORKERS AT ALL ILLNESS AND INJURY WOULD DISAPPEAR AUTOMATION IS ACCORDINGLY A COMMONLY PROPOSED ERGONOMIC MEASURE THIS PAST FALL AT A JOB SAFETY CONFERENCE IN CHICAGO A MEATPACKINGPLANT MANAGER SWELLED WITH PRIDE AT A FILM OF ONE OF HIS COMPANY'S FULLY AUTOMATED OPERATIONS WITH NARY A WORKER IN SIGHT WE USED TO HAVE HURT BACKS HURT SHOULDERS HE COMMENTED BUT NOT ANYMORE UNION MEMBERS IN THE AUDIENCE WERE WISE TO TAKE NOTE MOST AMBITIOUS OF ALL HOWEVER IS ERGONOMISTS' PROGRAM TO REACH BEYOND PHYSICAL CONDITIONS OF THE WORKPLACE TO ADDRESS THE VERY TERMS OF EMPLOYMENT INCREASINGLY ERGONOMISTS AND THEIR CRITICS ARE FINDING THAT EMPLOYEE REPORTS OF CTDS WHICH ARE DIFFICULT TO VERIFY OBJECTIVELY CORRELATE MORE STRONGLY WITH GENERALIZED JOB DISSATISFACTION THAN WITH A JOB'S PHYSICAL DEMANDS WITH ADMIRABLE PERSISTENCE ERGONOMISTS ARE NOW RECOMMENDING CHANGES TO THE PSYCHOSOCIAL CONDITIONS OF THE WORKPLACE THE RESEARCH ARM OF OSHA HAS RECOMMENDED MANDATORY ERGONOMICS PROGRAMS TO ADDRESS AMONG OTHER THINGS OPPORTUNITY FOR ADVANCEMENT WORKER FEEDBACK AND MANAGEMENT STYLE AND CLIMATE PERHAPS INSTEAD PSYCHOSOCIAL CAUSES OUGHT TO OCCASION SOME LASTMINUTE REFLECTIONS ON THE DOUBTFUL SCIENCE UNDERLYING ERGONOMICS IN THE WORDS OF ERGONOMICS GURU DON CHAFFIN WHAT THE FIELD LACKS IS GOOD EVALUATIONS THAT HOLD UP TO SCIENTIFIC SCRUTINY WHILE NO ONE DOUBTS THAT HARD WORK CAN BECOME TIRING AND UNCOMFORTABLE RESPECTED PHYSICIANS QUESTION FIRST WHETHER CTDS EXIST AS A DIAGNOSABLE CONDITION FALLING WITHIN OSHA'S AUTHORITY TO ADDRESS ILLNESS AND INJURY WHILE DISPUTING THIS ERGONOMISTS ACKNOWLEDGE SECOND THAT AN AILMENT CARRYING ALL THE SYMPTOMS OF A CTD MIGHT HAVE CAUSES OTHER THAN REPETITION AND FORCE AND THEREFORE NOT BE A CTD AT ALL DIAGNOSIS IS HARD IN ANY GIVEN CASE THIRD AND PERHAPS MOST NOTABLE OF ALL ERGONOMISTS READILY CONFESS NOT TO KNOW THE LEVELS AT WHICH REPETITION AND FORCE BECOME HAZARDOUS IN OTHER WORDS WHILE COMMANDING BUSINESS ON PAIN OF CIVIL OR EVEN CRIMINAL PENALTY TO REDUCE REPETITION AND FORCE TO NONHAZARDOUS LEVELS OSHA REGULATORS DO NOT KNOW THEMSELVES WHERE THIS LINE BETWEEN LEGAL AND ILLEGAL CONDUCT LIES SUCH A MANDATE IS PROBABLY UNCONSTITUTIONAL AND IS CERTAINLY STUPID POLICY BEFORE PARADING NAKED FOR HIS COUNTRYMEN THE EMPEROR WHO WORE NO CLOTHES PAID A HEFTY SUM TO CLEVER TAILORS WHO ASSURED HIM THEY HAD WOVEN A FINE GARMENT INDEED OTHER COUNTRIES NOTABLY AUSTRALIA HAVE INVESTED SMALL FORTUNES IN ERGONOMIC REFORM ONLY TO SEE THEIR CTD EPIDEMICS WAX AND WANE REGARDLESS OF THE MEASURES TAKEN AS ERGONOMICS RISES TO THE TOP OF THE NATION'S LABOR AGENDA POLICY MAKERS WOULD DO WELL TO TAKE CAREFUL MEASURE OF THE SCIENCE UNDERLYING IT MR SCALIA A LAWYER IN WASHINGTON REPRESENTS MANAGEMENT IN OCCUPATIONAL SAFETY AND HEALTH MATTERS SEE RELATED LETTER LETTERS TO THE EDITOR TRAUMA NOT FANTASY WSJ JAN 25 1994 9401130005 YY94 MM01 9401250166 940125 JAPANESE STOCKS PLUMMET POLITICAL SETBACK IS CITED BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S POLITICAL WOES ARE TRASHING TOKYO STOCKS THE NIKKEI STOCK AVERAGE PLUMMETED 95419 POINTS OR 49 MONDAY TO CLOSE AT 1835324 IN TRADING TUESDAY THE NIKKEI INDEX ROSE 9871 POINTS ENDING THE MORNING SESSION AT 1845195 MONDAY'S VOLUME WAS ESTIMATED AT 360 MILLION SHARES DOWN FROM 46322 MILLION SHARES FRIDAY LOSERS OUTNUMBERED GAINERS 1105 TO 15 THE TOKYO STOCK PRICE INDEX OR TOPIX FELL 7085 POINTS OR 45 TO 149906 THE LAST TIME THE NIKKEI HAD SUCH A BIG SINGLEDAY PLUNGE WAS DURING THE AUGUST 1991 COUP IN THE SOVIET UNION BUT THIS TIME THE PROBLEMS ARE LOCAL THE SURPRISE DEFEAT OF PRIME MINISTER MORIHIRO HOSOKAWA'S POLITICALREFORM PACKAGE HAS THROWN DOMESTIC POLITICS INTO DISARRAY AND LIKELY SLOWS A MUCHNEEDED JAPANESE GOVERNMENT ECONOMICSTIMULUS PROGRAM THE BIGGEST VICTIM MONDAY WAS THE MARKET WHICH HAD BEEN UP ABOUT 11 SO FAR THIS YEAR ON THE BELIEF THAT PESSIMISM ABOUT JAPAN WAS OVERBLOWN BUT NEARLY HALF THE YEAR'S GAINS DISAPPEARED MONDAY AND SOME SAID THE DECLINE COULD CONTINUE FOR ANOTHER 1000 POINTS IF THE POLITICAL SITUATION DOESN'T STABILIZE WE'RE A NATION THAT TAKES A SINGLE DIRECTION SAID YUKIO YOSHIDA DEPUTY PRESIDENT OF BANK OF TOKYO ASSET MANAGEMENT LTD NOW IT'S PESSIMISTIC HOW INVESTORS ARE COPING WITH THE SUDDEN GYRATIONS OF THE TOKYO MARKET SEEMS TO DEPEND ON THEIR NATIONALITY JAPANESE WERE HEAVY SELLERS WHILE FOREIGN INVESTORS WHO FOR MANY YEARS HAVE BEEN UNDERWEIGHTED IN JAPANESE STOCKS ARE STILL BUYING WHILE FOREIGNERS MAY HAVE BEEN JUST AS SURPRISED AS THE JAPANESE BY THE POLITICAL SETBACKS THEY HAVEN'T GIVEN UP HOPE THAT MORE ECONOMIC SPENDING WILL EVENTUALLY LEAD TO RECOVERY AND TO HEALTHIER CORPORATE EARNINGS INTERNATIONAL INVESTORS WERE MODEST NET BUYERS MONDAY THE FOREIGNERS TEND TO FAVOR JAPANESE HIGHTECHNOLOGY STOCKS AND ELECTRONICS EXPORTERS LIKE SONY CORP AND HITACHI LTD WHICH BENEFITED FROM A RECENT WEAKENING OF THE YEN THE FOREIGN ATTITUDE IS THAT THIS IS A HICCUP BUT WE'LL GET THROUGH IT SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD ON OUR ORDER SHEETS THE FOREIGN BIAS IS TOWARDS BUYING IT'S EASIER FOR FOREIGNERS TO STOMACH THE RIDE IN TOKYO WHILE JAPANESE INVESTORS HAVE LOST BILLIONS IN THEIR MARKET DURING THE PAST FOUR YEARS FOREIGNERS HAVE KEPT RELATIVELY LITTLE MONEY IN JAPAN INTERNATIONAL FUNDS MOST FOREIGN BUYING HAS COME FROM BIG INTERNATIONAL FUNDS WHICH LAST YEAR MADE FORTUNES IN THE US EUROPE AND ASIA'S EMERGING MARKETS MANY INSTITUTIONAL MANAGERS REASON THAT IT'S TIME TO ALLOCATE MORE MONEY TO JAPAN WHICH HASN'T SEEN A SUSTAINED BULL MARKET IN YEARS INTERNATIONAL INVESTORS MADE MONEY EVERYWHERE ELSE SAID EDWIN MERNER DIRECTOR OF SCHRODER INVESTMENT MANAGEMENT JAPAN LTD WHERE ELSE CAN THEY GO EXCEPT JAPAN BY DEFAULT IT'S THE ONLY PLACE LEFT ONE DANGER HE NOTES IS THAT A LOT OF FOREIGNERS ARE BUYING INDISCRIMINATELY OTHERS SCOFF AT THE WHOLE ASSETALLOCATION IDEA AT LEAST WHERE JAPAN IS CONCERNED DESPITE A WORLDWIDE BULL MARKET IN BONDS YOU DON'T SEE PEOPLE BUYING RUSSIAN CZARIST BONDS SAID ANDREW MCGRATH STRATEGIST AT CREDIT SUISSE THIS MARKET IS STILL OVERPRICED IF FOREIGNERS STAY MODESTLY BULLISH IT COULD BE A POWERFUL PLUS FOR THE MARKET PARTICULARLY IF JAPANESE SELLERS RESTRAIN THEMSELVES DURING THE NEXT FEW DAYS WHILE THE RULING PARTY SEEKS COMMON GROUND WITH THE OPPOSITION EVEN WITH MONDAY'S PLUNGE THOUGH THE ALLOCATORS ARE SHOWING STRONG RESULTS OVER THE SHORT TERM THE NIKKEI IS STILL UP 53 FOR THE YEAR AND 14 ABOVE NOVEMBER'S LOW THERE'S REASON TO THINK FOREIGN INVESTORS WILL REMAIN BULLISH WE HAVE NEW MONEY COMING IN WE'RE WARY OF OTHER MARKETS AND WE'RE UNDERWEIGHT IN JAPAN SAID MR MERNER HE THINKS JAPAN HAS SOME GREAT OPPORTUNITIES MOSTLY IN THE SMALLERCAPITALIZATION STOCKS THAT HIS FUND AND OTHERS NOW FAVOR WHILE MR MERNER AND OTHER FOREIGN MANAGERS EXPECT JAPAN TO RESUME ITS DEPENDABLE WAYS VOTING THROUGH A BIG SPENDING PACKAGE SOON THEY ALSO SPEAK AS VETERANS OF ONE OF THE CENTURY'S GREAT BEAR MARKETS AT THE WORST CASE IF THERE'S AN ELECTION WE'RE DELAYED A FEW WEEKS SAID PAUL MANSON A MANAGER AT KLEINWORT BENSON INVESTMENT MANAGEMENT WE'VE ALREADY HAD A NUMBER OF YEARS OF DISAPPOINTMENT THIS ISN'T THE END OF THE WORLD 9401250165 940125 MARKETING & MEDIA HUIZENGA PLANS TO BUY REMAINDER OF MIAMI DOLPHINS BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL H WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OF BLOCKBUSTER ENTERTAINMENT CORP SAID HE PLANS TO BUY THE REST OF THE MIAMI DOLPHINS FOOTBALL TEAM FOR AN UNDISCLOSED SUM MR HUIZENGA CURRENTLY OWNS 15 OF THE DOLPHINS THE REMAINDER IS OWNED BY THE HEIRS OF DOLPHINS FOUNDER JOE ROBBIE WHO HAVE BEEN TRYING TO SELL THE TEAM TO PAY ESTATE TAXES PEOPLE CLOSE TO THE NATIONAL FOOTBALL LEAGUE CITING THE RECENT SALE OF THE NEW ENGLAND PATRIOTS FOR ABOUT 160 MILLION ESTIMATE THE MIAMI TEAM IS WORTH AT LEAST 150 MILLION THE DOLPHINS EXPECT THE DEAL TO CLOSE BY SPRING HOWEVER THE SALE MUST BE APPROVED BY THE NATIONAL FOOTBALL LEAGUE WHICH CURRENTLY PROHIBITS TEAM OWNERS FROM OWNING OTHER SPORTS FRANCHISES MR HUIZENGA OWNS CONTROLLING INTERESTS IN BOTH THE FLORIDA MARLINS BASEBALL TEAM AND THE FLORIDA PANTHERS HOCKEY TEAM MR HUIZENGA COULD RECEIVE A WAIVER FROM THE NFL ON ITS CROSSOWNERSHIP RULE OR HE COULD BE FORCED TO SELL HIS STAKES IN THE BASEBALL AND HOCKEY TEAMS TO COMPLETE THE DOLPHINS ACQUISITION BLOCKBUSTER ALREADY HAS OPTIONS TO BUY HALFINTERESTS IN BOTH OF THE MARLINS AND PANTHERS EARLIER THIS MONTH BLOCKBUSTER ANNOUNCED PLANS TO MERGE WITH VIACOM INC A CABLE TELEVISION PROGRAMMER MR HUIZENGA DIDN'T RETURN PHONE CALLS SEEKING COMMENT SOME ANALYSTS PREDICTED THAT MR HUIZENGA WOULD TRY TO HOLD ON TO HIS INTERESTS IN ALL THREE TEAMS I THINK MR HUIZENGA'S CONFIDENT HE CAN GET A WAIVER SAID CRAIG BIBB A PAINEWEBBER INC ANALYST WHO HAS FOLLOWED BLOCKBUSTER AND MR HUIZENGA FOR YEARS I THINK HE WANTS ALL THREE TEAMS AND HE WOULD BUY THE MIAMI HEAT BASKETBALL TEAM IF HE COULD THE NFL COULD VOTE AS EARLY AS MARCH ON WHETHER TO PERMIT MR HUIZENGA TO COMPLETE THE DOPLHINS BUYOUT AND RETAIN HIS INTERESTS IN THE OTHER SPORTS FRANCHISES MR HUIZENGA MIGHT DIVERT MORE OF HIS ATTENTION TO HIS GROWING SPORTS EMPIRE IF HE TAKES A LESS ACTIVE ROLE IN THE PROPOSED VIACOMBLOCKBUSTER INC MR BIBB SAID MR HUIZENGA WILL BE VICE CHAIRMAN OF THE COMBINED ENTITY HE WILL BE LESS ACTIVE IN VIACOMBLOCKBUSTER IF THAT COMPANY DOES NOT WIN THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC HE HAS SAID BUT IF VIACOM DOES WIN PARAMOUNT MR HUIZENGA HAS SAID HE WILL ASSUME A MORE ACTIVE ROLE IN THE COMBINED COMPANIES IN EITHER CASE ACCORDING TO ONE PERSON FAMILIAR WITH MR HUIZENGA'S INTERESTS HE MIGHT SELL OR OTHERWISE COMBINE THE SPORTS TEAMS WITH THE ENTERTAINMENT COMPANIES BLOCKBUSTER HAS CONSIDERED ACQUIRING ALL OR PART OF MR HUIZENGA'S SPORTS INTERESTS IN THE PAST THE PERSON SAID IN ADDITION TO ITS MOVIE STUDIO AND PUBLISHING OPERATIONS PARAMOUNT OWNS THE NEW YORK KNICKS BASKETBALL TEAM AND THE NEW YORK RANGERS HOCKEY TEAM ALTHOUGH COMBINING MR HUIZENGA'S SPORTS TEAMS WITH THE ENTERTAINMENT COMPANIES COULD FORCE A DIVESTITURE OF ONE OR THE OTHER HOCKEY TEAM IT COULD MAKE SENSE SPORTS TEAMS HAVE HISTORICALLY BEEN STRONG SOURCES OF PROGRAMMING FOR CABLE TV NETWORKS SUCH AS TURNER BROADCASTING SYSTEM INC WHICH OWNS THE ATLANTA BRAVES BASEBALL TEAM AND MOST OF THE ATLANTA HAWKS BASKETBALL TEAM AND COULD BE VALUABLE PROGRAMMING ASSETS TO VIACOMBLOCKBUSTER 9401250164 940125 CREDIT RATINGS ELI LILLY'S DEBT IS DOWNGRADED BY RATING AGENCY BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOODY'S INVESTORS SERVICE INC CITING WHAT IT CALLED THE EXPECTATION OF LOWER PROFIT MARGINS IN THE FUTURE FOR ELI LILLY & CO LOWERED ITS RATINGS ON THE PHARMACEUTICAL COMPANY'S 900 MILLION OF LONGTERM DEBT THE RATING CONCERN HAD PUT THE INDIANAPOLISBASED COMPANY'S DEBT UNDER REVIEW LAST JUNE JAMES M CORNELIUS LILLY'S CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE SAID THROUGH A SPOKESMAN THAT THE MOVE WILL HAVE NO MATERIAL ADVERSE EFFECT ON THE COMPANY'S FINANCIAL POSITION MOODY'S LOWERED TO DOUBLEA1 FROM TRIPLEA THE NOTES MEDIUMTERM NOTES EURONOTES AND INDUSTRIAL REVENUE BONDS ISSUED BY PARENT ELI LILLY SIMILARLY MARKED DOWN WERE GUARANTEED EUROBONDS ISSUED BY ELI LILLY OVERSEAS FINANCE NV AND GUARANTEED AMORTIZING DEBENTURES ISSUED BY THE LILLY SAVINGS PLAN MASTER TRUST C THE COMPANY'S PRIME1RATED COMMERCIAL PAPER WASN'T UNDER REVIEW MOODY'S SAID IT EXPECTS LILLY'S PROFIT MARGINS TO NARROW PARTLY FROM THE LOSS OF PATENT PROTECTION ON CERTAIN PROFITABLE DRUGS SUCH AS ITS CECLOR ANTIBIOTIC AS WELL AS A DEARTH OF MEANINGFUL NEW PRODUCTS FOR THE INTERMEDIATE TERM IN ADDITION LILLY'S WEAKER FUNDAMENTALS WILL BE EXACERBATED MOODY'S SAID BY THE RISING CONCENTRATION OF NEGOTIATING POWER AMONG ITS MAJOR CUSTOMERS IN HEALTHCARE SERVICES MOODY'S SAID THE BROADSCALE CORPORATE RESTRUCTURING UNDERTAKEN BY LILLY SHOULD MAKE IT A MORE EFFICIENT ORGANIZATION BUT WILL UNLIKELY BE SUFFICIENT TO PREVENT AN EROSION IN OPERATING PROFIT MARGINS IN THE NEXT FEW YEARS IT POINTED OUT THAT THE COMPANY'S BALANCE SHEET IS EXPECTED TO REMAIN VERY STRONG AND THAT LILLY'S PLANNED DIVESTITURE OF ITS MEDICAL DEVICE AND DIAGNOSTICS BUSINESS WILL ENABLE MANAGEMENT TO CONCENTRATE ITS ATTENTION TO RESTORING THE FORWARD MOMENTUM OF ITS MAINSTAY PHARMACEUTICAL BUSINESS AND THAT CERTAIN DEVELOPMENTSTAGE DRUGS HOLD THE POTENTIAL FOR BECOMING BIG SELLERS 9401250163 940125 BUSINESS BRIEF REYNOLDS METALS' FOURTHPERIOD LOSS WIDENED AFTER RESTRUCTURING CHARGES RICHMOND VA REYNOLDS METALS CO FEELING THE EFFECTS OF A WORLDWIDE ALUMINUM GLUT POSTED A WIDER FOURTHQUARTER LOSS LARGELY BECAUSE OF CHARGES TO COVER THE COSTS OF PREVIOUSLY ANNOUNCED RESTRUCTURING ACTIONS THE COMPANY HAD A LOSS OF 2386 MILLION OR 398 A SHARE COMPARED WITH A YEARAGO LOSS OF 1521 MILLION OR 255 A SHARE THE LATEST PERIOD INCLUDES RESTRUCTURING CHARGES OF 2195 MILLION OR 367 A SHARE THE YEAREARLIER PERIOD INCLUDES CHARGES OF 155 MILLION OR 260 A SHARE FOR ENVIRONMENTAL AND RESTRUCTURING COSTS REVENUE FOR THE QUARTER WHICH ENDED DEC 31 AS WELL AS THE YEARAGO QUARTER WERE 135 BILLION THE RESULTS WERE SLIGHTLY BETTER THAN SOME ANALYSTS HAD EXPECTED THEY WERE RELEASED A DAY AFTER ALUMINUMPRODUCING NATIONS ENDED TALKS IN BRUSSELS WITH A PROPOSAL BUT STILL NO AGREEMENT TO CUT PRODUCTION IN TRADING ON THE NEW YORK STOCK EXCHANGE REYNOLDS METALS STOCK CLOSED AT 5025 A SHARE UP 2375 OR 5 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE YEAR REYNOLDS POSTED A LOSS OF 3221 MILLION OR 538 A SHARE INCLUDING CHARGES OF 8 MILLION OR 13 CENTS A SHARE TAKEN IN THE THIRD QUARTER TO COVER THE COSTS OF A TEMPORARY CURTAILMENT OF PRIMARY CAPACITY AND THE 2195 MILLION OR 367 A SHARE CHARGE TAKEN IN THE FOURTH QUARTER THAT COMPARES WITH A YEARAGO LOSS OF 7488 MILLION OR 1256 A SHARE AFTER CHARGES OF 7934 MILLION OR 1331 A SHARE PRINCIPALLY FOR THE EFFECTS OF ADOPTING NEW ACCOUNTING STANDARDS REVENUE FOR 1993 TOTALED 529 BILLION DOWN 64 FROM 566 BILLION A YEAR AGO RICHARD G HOLDER CHAIRMAN SAID THE RESULTS REFLECT A CONTINUATION OF ONE OF THE MOST DIFFICULT PERIODS IN THE HISTORY OF THE ALUMINUM INDUSTRY HE SAID THAT DESPITE WEAKNESS IN SEVERAL MAJOR GLOBAL ECONOMIES WESTERN WORLD DEMAND FOR ALUMINUM CONTINUED TO GROW AND REYNOLDS SHIPMENTS ONCE AGAIN SHOWED YEARTOYEAR IMPROVEMENT THE PROBLEM IS THE SEVERITY OF THE WORLD ALUMINUM SUPPLYDEMAND IMBALANCE WHICH ESCALATED IN 1993 9401250162 940125 WHO'S NEWS SOUTHWEST AIRLINES SOUTHWEST AIRLINES DALLAS JUNE M MORRIS FOUNDER AND CHIEF EXECUTIVE OFFICER OF MORRIS AIR WAS ELECTED A DIRECTOR OF THIS AIRLINE WHICH COMPLETED THE ACQUISITION OF MORRIS AIR THIS MONTH THE ELECTION OF MRS MORRIS INCREASES THE BOARD TO EIGHT MEMBERS 9401250161 940125 TECHNOLOGY & HEALTH COMPAQ TO DELAY HANDHELD COMPUTER AFTER BAD REVIEWS OF PENBASED RIVAL BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON COMPAQ COMPUTER CORP SAID IT IS RETHINKING THE DESIGN OF ITS COMING HANDHELD PERSONAL COMPUTER FOLLOWING BLISTERING CRITICISM OF A SIMILAR MACHINE FROM APPLE COMPUTER INC AS A RESULT COMPAQ SAID ITS SOCALLED MOBILECOMPANION DEVICE INITIALLY EXPECTED OUT DURING THIS YEAR'S FIRST HALF WILL BE DELAYED UNTIL THE FALL COMPAQ'S MACHINE LIKE THE APPLE NEWTON MESSAGEPAD AGAINST WHICH IT WILL COMPETE WAS EXPECTED TO USE A SPECIAL PEN AND THE USER'S HANDWRITING INSTEAD OF A KEYBOARD FOR ITS BASIC COMMANDS BUT COMPAQ OFFICIALS SAY THE HANDWRITINGRECOGNITION CAPABILITIES OF THE NEWTON HAVE BEEN SO WIDELY RIDICULED THAT THEY HAVE BEGUN TO QUESTION WHETHER A PENBASED MACHINE CAN STILL SUCCEED LORIE STRONG A COMPAQ VICE PRESIDENT SPEARHEADING THE HANDHELD EFFORT AT THE COMPUTER GIANT SAID THE COMPANY'S NEW MACHINE MOST LIKELY WILL INCLUDE A KEYBOARD OPTION AND WON'T REQUIRE HANDWRITTEN COMMANDS TO OPERATE WE'RE REASONABLY CONVINCED THAT WE OUGHT TO DO A PRODUCT WHERE HANDWRITING RECOGNITION IS NOT REQUIRED MS STRONG SAID IT SEEMS TO REMAIN UNACCEPTABLE TO USERS ANALYSTS PRAISED THE NEWS OF COMPAQ'S SHIFT SAYING THE WOES OF THE NEWTON HAVE TEMPORARILY SOURED THE MARKET ON PENBASED PCS THE APPLE MACHINE A PET PROJECT OF FORMER COMPANY CHAIRMAN JOHN SCULLEY HAS BEEN WIDELY PANNED EVEN BY THE NATIONAL COMIC STRIP DOONESBURY WHICH MOCKED THE NEWTON'S HANDWRITINGRECOGNITION ERRORS THERE'S BEEN AN INCREDIBLE BACKLASH SAID JEFFREY HENNING AN ANALYST AT BIS STRATEGIC DECISIONS INC IN NORWELL MASS NOW YOU HAVE TO UNDERSELL THE HANDWRITING PART KIMBALL BROWN AN ANALYST AT DATAQUEST INC IN SAN JOSE CALIF SAID COMPAQ IS ABSOLUTELY ON THE RIGHT TRACK IN INCLUDING A KEYBOARD OPTION ON ITS NEW MACHINE IF YOU'RE GOING TO INCLUDE HANDWRITING HE ADVISES DOWNPLAY IT TO DEATH AT APPLE A SPOKESWOMAN DECLINED TO TALK ABOUT COMPAQ'S PLANS BUT SAID HER COMPANY HAS ACKNOWLEDGED THAT THE NEWTON ISN'T FLAWLESS NO HANDWRITINGRECOGNITION TECHNOLOGY IS PERFECT SHE SAID BUT THIS IS STILL THE BEST THAT EXISTS IN THE INDUSTRY MS STRONG NOTED THAT THE DIFFERENCES BETWEEN THE NEWTON AND COMPAQ'S DEVICE GO BEYOND SIMPLY THE HANDWRITING FUNCTION SHE SAID COMPAQ PLANS TO PITCH ITS MOBILE COMPANION AS AN EXTENSION OF THE DESKTOP PC FOR BUSINESS USERS THE NOTION IS THAT PEOPLE OUGHT TO BE ABLE TO USE THE MOBILE MACHINE TO DO MANY OF THE SAME THINGS THEY DO AT THEIR DESKS INCLUDING RUNNING PROGRAMS BASED ON MICROSOFT CORP'S WINDOWS SOFTWARE THE NEWTON BY CONTRAST HAS BEEN MARKETED AS A PERSONALCOMMUNICATIONS DEVICE SEPARATE FROM THE DESKTOP IT'S A DIFFERENT APPROACH THAN THE NEWTON MS STRONG SAID WE FELT WE NEEDED TO DISTANCE OURSELVES COMPAQ'S MACHINE WILL RUN ON A MICROSOFT PLATFORM CALLED WINPAD WHICH THE SOFTWARE GIANT IS HOPING WILL BECOME THE NEXT STANDARD OPERATING SYSTEM FOR MOBILE COMPUTING 9401250160 940125 INTERNATIONAL SWISS PRODUCER IMPORT PRICES BERN SWITZERLAND'S INDEX OF PRODUCER AND IMPORT PRICES WAS UNCHANGED IN DECEMBER FROM NOVEMBER BUT FELL 02 FROM THE YEAR EARLIER THE GOVERNMENT STATISTICS OFFICE SAID IN THE ENTIRE YEAR THE INDEX AVERAGED AN INCREASE OF 02 COMPARED WITH AN AVERAGE GAIN OF 01 IN 1992 AND 04 IN 1991 9401250159 940125 TECHNOLOGY & HEALTH APPLE'S SALES DATA SUGGEST TO ANALYSTS THAT NEW MESSAGEPAD IS FLOUNDERING BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC SAID IT HAS SOLD ABOUT 80000 OF ITS HANDHELD NEWTON MESSAGEPADS A NUMBER THAT ANALYSTS SAY CONFIRMS THE PRODUCT HAS FLOUNDERED AFTER A BIG LAUNCH LAST AUGUST FOR MESSAGEPAD TO HAVE BEEN A BIG HIT ANALYSTS SAID IT SHOULD HAVE SOLD IN THE HUNDREDS OF THOUSANDS BY NOW BUT AT AN INDUSTRY CONFERENCE GASTON BASTIAENS AN APPLE VICE PRESIDENT AND GENERAL MANAGER SAID THE COMPANY HAD SOLD ABOUT 80000 THROUGH EARLY THIS MONTH ALTHOUGH THE CUPERTINO CALIF COMPANY DID NOT GIVE A BREAKDOWN ON SALES THE 80000 NUMBER WOULD INDICATE A SHARP FALLOFF FROM THE 50000 SALES IT PREVIOUSLY HAD ANNOUNCED AS OF MIDSEPTEMBER TO ABOUT 7500 PER MONTH SINCE THEN IT DROPPED WITH A THUD ON THE MARKET SAID JOHN J GIRTON VICE PRESIDENT OF RESEARCH FOR VAN KASPER & CO WHILE APPLE OFFICIALS SAID THEY WERE NOT DISAPPOINTED BECAUSE SALES OF NEW PRODUCTS TYPICALLY DECLINE AFTER A STRONG START MESSAGEPAD'S PLUNGE RAISES FRESH CONCERNS ABOUT HOW LONG IT WILL TAKE FOR THIS NEW CLASS OF COMPUTERS WHICH APPLE CALLS PERSONAL DIGITAL ASSISTANTS TO TAKE OFF THE MESSAGEPAD SOLD STRONGLY AT FIRST MOSTLY TO ADOPTERS OF EARLY TECHNOLOGY BUT USER COMPLAINTS OVER SUCH THINGS AS ITS LIMITED ABILITY TO RECOGNIZE HANDWRITING AS WELL AS ITS RELATIVELY HIGH PRICE HAVE CHOKED OFF SALES MESSAGEPAD IS THE FIRST PRODUCT BASED ON APPLE'S NEWTON TECHNOLOGY FOR MOBILE COMMUNICATIONS WHICH THE COMPANY WANTS TO LICENSE WIDELY TO BUILD A RELIABLE REVENUE STREAM AS A MEASURE IN PART TO COUNTERACT DECLINING PROFIT MARGINS IN ITS FLAGSHIP LINE OF MACINTOSH PERSONAL COMPUTERS THE TECHNOLOGY HOLDS GREAT PROMISE AND IN FACT HAS DRAWN SOME 2000 DEVELOPERS OF SOFTWARE PROGRAMS TO CONSIDER CREATING VARIOUS APPLICATIONS FOR IT BUT THE MESSAGEPAD WAS INTRODUCED WITH ONLY A FEW FUNCTIONS AND STILL DOESN'T POSSESS FEATURES LIKE ACCESS TO ELECTRONIC MAIL THAT ANALYSTS SAY ARE ESSENTIAL TO MASS SALES THE MESSAGEPAD'S PRICE OF ABOUT 1000 FULLY CONFIGURED ALSO ALL BUT KILLS ANY APPEAL THE PRODUCT WOULD HAVE TO THE MASS CONSUMER MARKET WHERE ANALYSTS SAY A PRICE OF UNDER 500 IS MORE IN LINE TO BE SURE THOUGH MESSAGEPAD IS ONLY THE FIRST GENERATION OF ITS KIND AND ALREADY APPLE IS WORKING ON AN UPDATED REPLACEMENT THAT IS EXPECTED TO BE INTRODUCED LATER THIS YEAR TO TRY TO BOLSTER THE CURRENT PRODUCT'S MARKETABILITY APPLE HAS RECENTLY ADDED A NUMBER OF NEW NEWTON APPLICATIONS INCLUDING A COMPUTERIZED TRAVEL GUIDE A PAGING CARD AND FORMS TO FILL OUT HEALTHCARE APPLICATIONS WHILE TRAVELING IN ALL MESSAGEPAD HAS GAINED ABOUT 40 APPLICATIONS AND SOON WILL ALSO BE OUTFITTED WITH ELECTRONIC MAIL WE'RE SORT OF IN THE EARLY PHASE OF NEWTON BUT THAT DOESN'T MEAN IT'S ALL OVER WITH NEWTON MR GIRTON SAID IT'S JUST GETTING STARTED BRUCE LUPATKIN DIRECTOR OF TECHNOLOGY RESEARCH AT SECURITIES FIRM HAMBRECHT & QUIST SAID THE NEXTGENERATION MESSAGEPAD SHOULD SELL MUCH BETTER THAN THIS ONE BOLSTERING THAT PRODUCT'S PROSPECTS INDEED WAS YESTERDAY'S DISCLOSURE BY JAPANESE ELECTRONICS COMPANY TOSHIBA CORP THAT IT IS CONSIDERING A TIEUP WITH APPLE TO DEVELOP NEXTGENERATION PERSONAL DIGITAL ASSISTANTS BASED ON THE NEWTON TECHNOLOGY TOSHIBA LICENSED THE NEWTON OPERATING SYSTEM LATE LAST YEAR A TOSHIBA SPOKESMAN SAID THOUGH HE DECLINED TO SAY WHEN COMPANY OFFICIALS MIGHT REACH A DECISION ON THE PROPOSED LINK IF IT DECIDES TO PROCEED TOSHIBA WOULD BECOME THE SECOND JAPANESE COMPANY TO MANUFACTURE SUCH MACHINES BASED ON APPLE'S TECHNOLOGY BESIDES APPLE THE MESSAGEPAD IS ALSO MANUFACTURED BY SHARP CORP WHICH HAS INTRODUCED ITS OWN VERSION OF THE MESSAGEPAD IN THE US AND JAPAN BY HAVING BOTH SHARP AND TOSHIBA MANUFACTURING THE PRODUCT ANALYSTS SAY THE COMPETITION WOULD HELP FORCE MESSAGEPAD'S PRICES DOWN INTO THE RANGE OF THE CONSUMER MARKET 9401250158 940125 LAW ABORTIONRIGHTS FORCES WIN KEY VICTORY IN HIGH COURT ALLOWING USE OF RICO BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ABORTIONRIGHTS FORCES WON AN IMPORTANT PROCEDURAL VICTORY AS THE SUPREME COURT SAID THEY MAY USE THE FEDERAL RACKETEERING LAW AS A WEAPON AGAINST PROTESTERS WHO TRY TO SHUT DOWN ABORTION CLINICS YESTERDAY'S UNANIMOUS RULING WILL ALLOW THE NATIONAL ORGANIZATION FOR WOMEN TO GO FORWARD WITH A CIVIL LAWSUIT ALLEGING THAT OPERATION RESCUE AND OTHER ANTIABORTION GROUPS ENGAGED IN A NATIONWIDE CONSPIRACY TO USE HARASSMENT AND VIOLENCE TO FORCE CLINICS TO CLOSE THE HIGH COURT'S DECISION COULD IMPERIL MILITANT ANTIABORTION ORGANIZATIONS BECAUSE THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW KNOWN AS RICO ALLOWS PLAINTIFFS TO SEEK DAMAGES EQUAL TO TRIPLE THEIR ACTUAL HARM BUT THE JUSTICES EMPHASIZED THAT THEY WEREN'T RULING ON THE MERITS OF THE NOW SUIT WHICH NOW WILL GO BACK TO A US TRIAL COURT IN CHICAGO FOR FURTHER PROCEEDINGS ABORTIONRIGHTS LAWYERS SAID THAT AS A RESULT OF THE HIGH COURT'S DECISION THEY WILL CONSIDER ADDING OR BEEFING UP RICO ALLEGATIONS IN DOZENS OF OTHER PENDING SUITS FILED ON BEHALF OF TARGETED CLINICS RANDALL TERRY FOUNDER OF OPERATION RESCUE CALLED THE RULING A VULGAR BETRAYAL OF OVER 200 YEARS OF TOLERANCE TOWARD PROTEST AND CIVIL DISOBEDIENCE THE DECISION TURNED ON A RELATIVELY NARROW TECHNICAL QUESTION MUST A PLAINTIFF USING RICO PROVE THAT A DEFENDANT'S BAD DEEDS HAD AN ECONOMIC MOTIVE THE COURT'S ANSWER WAS NO RICO PROHIBITS CONDUCTING AN ENTERPRISE IN A PATTERN OF RACKETEERING ACTIVITY THE PATTERN CAN BE SHOWN BY PROVING TWO OR MORE OF A LONG LIST OF UNDERLYING OFFENSES SUCH AS EXTORTION WRITING FOR THE COURT CHIEF JUSTICE WILLIAM REHNQUIST STRESSED THAT THE RELEVANT SECTIONS OF THE RACKETEERING LAW NEITHER STATE OR IMPLY THE NEED FOR AN ECONOMIC MOTIVE THE COURT'S CONCLUSION WASN'T SURPRISING BECAUSE THE JUSTICES HAVE RESISTED MOST INVITATIONS TO NARROW THE SCOPE OF THE BROADLY WORDED RICO STATUTE SOME LOWER FEDERAL COURTS INCLUDING THE TWO THAT HAD CONSIDERED THE NOW SUIT IMPROPERLY IMPOSED THE ECONOMICMOTIVE REQUIREMENT THE CHIEF JUSTICE SAID THE CLINTON ADMINISTRATION HAD URGED THE HIGH COURT TO REJECT THE REQUIREMENT IN PART BECAUSE IT WOULD MAKE IT MORE DIFFICULT FOR PROSECUTORS TO BRING CASES UNDER RICO'S CRIMINAL PROVISIONS AGAINST TERRORISTS WHO AREN'T MOTIVATED PRIMARILY BY PROFITS THE RULING ON RICO COMES AT A TIME OF ACTIVITY ON A NUMBER OF FRONTS IN THE CLASH BETWEEN PROTESTERS' RIGHTS TO OPPOSE ABORTION AND THE RIGHTS OF WOMEN AND THEIR DOCTORS TO CARRY OUT THE PROCEDURE JUST LAST FRIDAY FOR EXAMPLE THE SUPREME COURT AGREED TO HEAR A SEPARATE CASE INVOLVING HOW FAR COURTS AND LOCAL GOVERNMENTS MAY GO IN BARRING PROTEST ACTIVITIES IN BUFFER ZONES AROUND CLINICS MEANWHILE CONGRESS IS EXPECTED IN THE NEAR FUTURE TO PASS LEGISLATION THAT WOULD MAKE IT A FEDERAL CRIME TO BLOCK WOMEN FROM ENTERING OR LEAVING ABORTION CLINICS THAT BILL SLIGHTLY DIFFERENT VERSIONS OF WHICH HAVE PASSED BOTH HOUSES WOULD CREATE A NEW BASIS FOR CIVIL SUITS UNLIKE RICO THE CLINICPROTECTION LAW WOULDN'T REQUIRE PLAINTIFFS TO PROVE A PATTERN OF RACKETEERING 9401250157 940125 SMALL STOCK FOCUS SEVERAL TECHNOLOGY STOCKS TUMBLE EARNINGS REPORTS HURT OTHER ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE RUSSELL 2000 INDEX'S EIGHT DAYS OF BACKTOBACK RECORDS CAME TO A HALT AS INVESTORS TOOK PROFITS THE BAROMETER WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DECLINED 091 POINT OR 034 TO 26289 AFTER SPENDING PART OF YESTERDAY AFTERNOON IN RECORD TERRITORY SOME NETWORKING ISSUES FOLLOWED DSC COMMUNICATIONS LOWER AFTER THE STOCK SKIDDED 3 1/8 TO 62 1/2 FOLLOWING A DOWNGRADE BY SALOMON BROTHERS THE PLANO TEXAS COMPANY POSTED IMPROVED FOURTHQUARTER RESULTS OF 51 CENTS A SHARE UP FROM 28 CENTS AFTER THE CLOSE DYNATECH BURLINGTON MASS FELL 1 1/8 TO 20 5/8 AFTER REPORTING FISCAL THIRDQUARTER NET INCOME OF 14 CENTS A SHARE BELOW LAST YEAR'S 57 CENTS AND ANALYSTS' FORECASTS OF 26 CENTS ALSO IN THE TECHNOLOGY GROUP ALTRON WILMINGTON MASS DECLINED 7/8 TO 14 7/8 AND NETWORK EQUIPMENT TECHNOLOGIES NYSE REDWOOD CITY CALIF GAVE UP 1/4 TO 8 3/4 CYRIX BASED IN RICHARDSON TEXAS SURGED 3 3/4 TO 24 1/2 CYRIX WON THE FIRST ROUND IN ANOTHER LEGAL BATTLE WITH RIVAL INTEL OVER ITS RIGHT TO SELL COMPUTER CHIPS THAT ARE INTEL CLONES INTEL SANTA CLARA CALIF ADDED 3/8 TO 65 1/2 AMONG STOCKS SENSITIVE TO INTEREST RATES PROVIDENT BANCORP CINCINNATI LOST 1 TO 31 1/2 UNITED WISCONSIN SERVICES MILWAUKEE FELL 1 1/4 TO 30 AND SELECTIVE INSURANCE GROUP BRANCHVILLE NJ RETREATED 7/8 TO 28 1/4 IEC ELECTRONICS ROSE 3/4 TO 13 1/2 FOLLOWING ITS RELEASE OF IMPROVED FISCAL FIRSTQUARTER EARNINGS THE NEWARK NY MAKER OF COMPLEX CIRCUITBOARD ASSEMBLIES SAID IT EARNED 37 CENTS A SHARE ON MORE SHARES IN THE LATEST QUARTER UP FROM 22 CENTS A YEAR EARLIER HUNTINGDON INTERNATIONAL HOLDINGS NYSE OF THE UK PLUMMETED 2 1/2 TO 8 5/8 THE PROVIDER OF CONSULTING ENGINEERING AND CHEMISTRY SERVICES SAID ITS ESTIMATED OPERATING PROFIT FOR THE FISCAL FIRST QUARTER ENDED DEC 31 IS SIGNIFICANTLY BELOW NET INCOME OF 23 CENTS AN AMERICAN DEPOSITARY RECEIPT REPORTED A YEAR EARLIER TELIOS PHARMACEUTICALS SAN DIEGO PLUNGED 1 3/8 TO 4 7/8 THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION IS SEEKING FURTHER INFORMATION ABOUT CERTAIN ASPECTS OF PREVIOUSLY SUBMITTED CLINICAL DATA REGARDING TELIOS' ARGIDENE GEL FOR TREATMENT OF DIABETIC FOOT ULCERS GREENWICH PHARMACEUTICALS FORT WASHINGTON PA JUMPED 5/8 TO 3 7/8 IN HEAVY TRADING ANALYSTS SAID THE SHARES ROSE AHEAD OF THURSDAY'S MEETING WITH THE FDA'S ARTHRITIS DRUGS ADVISORY COMMITTEE NATIONAL STEEL NYSE ADDED 1 3/4 TO 15 7/8 FOLLOWING NEWS THAT IT WILL RECEIVE A 110 MILLION CASH INJECTION FROM A LAWSUIT THE COMPANY AND OTHER STEELMAKERS BROUGHT AGAINST A USX SUBSIDIARY THE US SUPREME COURT SAID IT WILL LET STAND A 210 MILLION ANTITRUST AWARD AGAINST BESSEMER & LAKE ERIE RAILROAD THE USX UNIT NATIONAL STEEL BASED IN MISHAWAKA IND WAS AWARDED 875 MILLION PLUS INTEREST CASINO MAGIC GAINED 1 1/8 TO 17 THE BAY ST LOUIS MO COMPANY SAID ITS GATEWAY CASINO CO JOINT VENTURE WITH CAESARS WORLD HAS WON THE RIGHT TO NEGOTIATE FOR THE THIRD OF THREE RIVERBOAT GAMBLING SITES PEGGED FOR ST LOUIS FIRST TEAM SPORTS MOUNDS VIEW MINN ROSE 3/4 TO 7 3/4 THE COMPANY SAID IT WAS SELECTED AS A SUPPLIER TO WALMART STORES FOR A NUMBER OF ITS INLINE SKATE PRODUCTS FIRST TEAM SAID IT THINKS SALES TO WALMART WILL HAVE A POSITIVE IMPACT ON ITS FISCAL 1995 SALES RESULTS TRADERS SUCH AS LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL GROUP SAID SHARP SWINGS ON THE NEW YORK STOCK EXCHANGE DUE TO PROGRAMS INTERFERED WITH THE ABILITY OF SMALL STOCKS TO MAINTAIN THEIR RECORD LEVELS THE DOW JONES INDUSTRIAL AVERAGE JUMPED AROUND SAILING UP AS MANY AS 19 POINTS FROM FRIDAY'S RECORD OF 391448 BY THE CLOSE THE BIG BOARD INDICATOR HAD EASED ABOUT 1 3/4 POINTS IT WAS JUST VERY SLOPPY ALL AROUND MR KINNEY SAID IT WAS THE COMBINATION OF PROFITTAKING AND THAT THE BREADTH DIDN'T LOOK TOO GOOD THE NASDAQ STOCK MARKET'S ADVANCEDECLINE LINE SHOWED LOSERS BEATING OUT GAINERS 1706 TO 1360 NASDAQ NATIONAL MARKET VOLUME WAS AT 257160801 SHARES TOTAL VOLUME REGISTERED 302445101 SHARES ON FRIDAY NATIONAL MARKET TURNOVER STOOD AT 293710600 AND OVERALL VOLUME WAS 349432300 THE NASDAQ COMPOSITE INDEX SLIPPED 363 POINTS OR 046 TO END AT 79065 AFTER RISING BRIEFLY ABOVE FRIDAY'S RECORD EARLY YESTERDAY AFTERNOON NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 99 WHILE 22 HIT LOWS 9401250156 940125 WHO'S NEWS TANGER FACTORY OUTLET CENTERS INC TANGER FACTORY OUTLET CENTERS INC GREENSBORO NC THOMAS E ROBINSON 46 YEARS OLD WAS APPOINTED A DIRECTOR OF THE OWNER AND OPERATOR OF OUTLET CENTERS MR ROBINSON IS A SENIOR EXECUTIVE OF JERRY J MOORE INVESTMENTS A TEXASBASED OWNER AND OPERATOR OF SHOPPING CENTERS HIS APPOINTMENT INCREASES THE SIZE OF THE BOARD TO SIX MEMBERS 9401250155 940125 INTERNATIONAL BELLIGERENCE OF RUSSIA'S ZHIRINOVSKY REFLECTS BRUTE ANGER GROWING IN NATION BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW YOU WAKE UP EVERY MORNING AND THE PAPERS SAY YOU'RE A FASCIST JUST IMAGINE WHAT KIND OF A STATE YOU WOULD BE IN THAT'S HOW ONE LAWMAKER IN RUSSIA'S NEW PARLIAMENT ALEXANDER NEVZOROV EXPLAINS THE LATEST OUTBURSTS OF HIS FELLOW DEPUTY VLADIMIR ZHIRINOVSKY IN THE TWO WEEKS SINCE RUSSIA'S NEW LEGISLATURE CONVENED MR ZHIRINOVSKY HAS LANDED IN A FIST FIGHT IN THE PARLIAMENTARY LUNCH LINE TRIED TO SHOUT DOWN HIS POLITICAL OPPONENTS AT THE MICROPHONE THREATENED TO JAIL THEM AND TOLD SOME OF THEM THEY BELONG IN PSYCHIATRIC HOSPITALS THIS FOLLOWS A ONEMONTH STRETCH BETWEEN THE DECEMBER ELECTIONS AND THE OPENING OF PARLIAMENT IN WHICH MR ZHIRINOVSKY AMONG OTHER THINGS CALLED FOR THE PRESIDENT OF BULGARIA TO RESIGN SAID RUSSIA HAD A SECRET WEAPON THE ELIPTON STRONGER THAN THE ATOMIC BOMB AND THREATENED GERMANY WITH WORLD WAR III THE HOPE AMONG MR ZHIRINOVSKY'S CRITICS IS THAT HE MIGHT SPIN SO FAR OUT OF CONTROL THAT HE WILL DESTROY HIMSELF POLITICALLY BEFORE HE WRECKS ANYTHING ELSE HE'S AN IDIOT WHEN YOU'RE WATCHING TELEVISION IT DOESN'T MAKE ANY DIFFERENCE WHETHER YOU'RE WATCHING CLOWNS AND CIRCUSES OR ZHIRINOVSKY SAYS AN OUTOFWORK DRIVER FROM THE CITY OF TAMBOV VOLODYA STEPANOV BUT RUSSIA IS A COUNTRY WHERE GOOD MANNERS DON'T TOP THE LIST OF PRIZED POLITICAL CREDENTIALS AND THOUGH MANY RUSSIANS DISAPPROVE OF BOTH MR ZHIRINOVSKY'S BEHAVIOR AND HIS IDEAS TO OTHERS HE OFFERS A BRAND OF JACKBOOT BURLESQUE THAT SUITS THE MOOD OF THE TIMES HE ARTICULATES THE BRUTE ANGER SWELLING AMONG PEOPLE FACED WITH HIGH INFLATION CHRONIC UNCERTAINTY AND THE HUMILIATING SENSE THAT THEY INHABIT A SCARRED AND SHRUNKEN NATION IN MR ZHIRINOVSKY'S ELECTORAL DISTRICT OF SCHELKOVO ON THE OUTSKIRTS OF MOSCOW A PENSIONER ANNA KOSHALEVA SAYS SHE LIKES MR ZHIRINOVSKY BECAUSE THOUGH ALL OTHER POLITICIANS LOOK ALIKE TO HER HE STANDS OUT AT THE SHOE COUNTER OF THE NEARBY OLYMPIA SALON SALESLADY NINA LAPUTIN SAYS WHERE I LIVE THEY'RE ALL FOR ZHIRINOVSKY MAYBE BECAUSE HE WANTS TO OPEN THE ROAD FOR THE YOUNG NOT ALL THE YOUNG AGREE FROM WHAT I'VE HEARD HE'S A MENTAL CASE SAYS 16YEAROLD YEVGENY GORDEYEV STROLLING BY OUTSIDE WHO ASKS HOW CAN YOU LIKE A PERSON WHO SAYS YOU CAN SELL VODKA FOR THREE RUBLES ONEFIFTH OF A CENT A BOTTLE SOME DEPUTIES IN MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY SAY HIS BEHAVIOR IS SIMPLY WHAT ANY NORMAL PERSON MIGHT DO WHEN PROVOKED WE ARE NORMAL PEOPLE WE REACT NORMALLY TO THE AGGRESSIVENESS OF OTHERS ASSERTS LDP MEMBER SERGEI ABELTSEV A STURDY BALD DEPUTY WHOM MR ZHIRINOVSKY HAS ANNOINTED AS SECURITY MINISTER OF THE CABINET HE INTENDS TO APPOINT IF HE'S ELECTED PRESIDENT ASKED ABOUT THE FIST FIGHT IN WHICH A LIBERAL DEPUTY MARK GORYACHEV STARTED BRAWLING WITH MR ZHIRINOVSKY AFTER AN EXCHANGE OF INSULTS AT THE PARLIAMENTARY LUNCH COUNTER MR ABELTSEV SAYS MR ZHIRINOVSKY AND HIS PARTY FOLLOWERS SHOULD HAVE BEEN PRAISED FOR TREATING THEIR ENEMIES WITH RESTRAINT IF ZHIRINOVSKY WOULD TELL US TO DO SO WE WOULD KILL THEM LIKE FLIES MR ZHIRINOVSKY ASKED IN AN INTERVIEW IN THE HALLS OF PARLIAMENT LAST WEEK WHETHER HE THOUGHT HE MIGHT HAVE GONE TOO FAR IN SOME OF HIS RECENT ACTIONS REPLIED THAT THE PROBLEM ISN'T WHAT HE DOES BUT HOW IT'S REPORTED HE WOULD LIKE TO CORRECT THIS IF YOU SAY I'M A FASCIST I'LL SUE YOU FOR 10 MILLION MARKS OR 10 MILLION AND YOUR PAPER WILL GO OUT OF BUSINESS AND YOUR EDITOR IN CHIEF WILL KILL HIMSELF CROWDED AROUND HIM A SCORE OF LDP DEPUTIES CLAPPED AND CHEERED IN THE INTERVIEW MR ZHIRINOVSKY OFFERED A FURTHER SAMPLE OF HIS STYLE EXPLAINING THAT HE STANDS FOR NATIONAL PRIDE BELGIUM HE SAID IS JUST A LITTLE COUNTRY NEXT TO GERMANY AND ALL THEY HAVE IN BELGIUM IS BEER AND HOT DOGS I DON'T WANT RUSSIA TO BE JUST A LITTLE COUNTRY NEXT TO SOMETHING ELSE IN RUSSIA WE WON'T HAVE BEER AND HOT DOGS BUT WE WILL HAVE OUR GREAT FATHERLAND AMONG MANY PARLIAMENTARIANS OUTSIDE THE LDP'S 64SEAT BLOCK IN THE 450SEAT CHAMBER MR ZHIRINOVSKY'S THEATRICS PLAY LESS WELL LYUBOV OLYENIK OF THE COMMUNIST PARTY NOTED HE SHOULD CONTROL HIMSELF HE'S DOING BADLY WITH THOSE MANNERS MR ZHIRINOVSKY'S BLUSTER IN THE LOWER HOUSE OF PARLIAMENT THE STATE DUMA DIDN'T GET HIM ELECTED SPEAKER WHICH AT ONE POINT HE HAD WANTED NEITHER DID IT GET HIM THE CHAIRMANSHIP OF THE FOREIGN RELATIONS COMMITTEE WHICH HE HAD ALSO WANTED I THINK HE WILL DISCREDIT HIMSELF SAYS AN AIDE TO PRESIDENT BORIS YELTSIN THEODORE SHELOVKOVEDYAEV SMOKING A CIGAR JUST OUTSIDE THE PARLIAMENTARY CHAMBER BUT ADDS MR SHELOVKOVEDYAEV WE NEED TO MAKE A STRONG EFFORT TO HELP HIM IN DOING THAT ONE SHOULD NOT UNDERESTIMATE THE DANGER IN ZHIRINOVSKY ONE EFFORT TO HELP IN THE DISCREDITING OF MR ZHIRINOVSKY CAME LAST WEEK FROM THE MAYOR OF ST PETERSBURG ANATALOY SOBCHAK MR SOBCHAK TOLD THE RUSSIAN NEWSPAPER LITERATURNAYA GAZETA THAT HE HAD TRUSTWORTHY FACTS SHOWING THAT MR ZHIRINOVSKY HAD BEEN A KGB AGENT AND THAT THE KGB HAD SET UP MR ZHIRINOVSKY'S LDP IN 1989 BUT MR SOBCHAK HAS YET TO SUBSTANTIATE HIS ALLEGATIONS MR NEVZOROV WHO IS AN INDEPENDENT DEPUTY FROM ST PETERSBURG SUMS UP THE ENTHUSIASM THAT MR ZHIRINOVSKY SEEMS TO IMPART TO HIS SUPPORTERS FOR ME ZHIRINOVSKY RESEMBLES A FIGHTER PLANE WITH FULL GAS TANKS WHEREAS YELTSIN'S GAS TANKS ARE EMPTY 9401250154 940125 WEST ONE COMPLETES PURCHASE BOISE IDAHO WEST ONE BANCORP COMPLETED ITS ACQUISITION OF IDAHO STATE BANK AS REPORTED THE COMPANY SAID IN APRIL THAT IT SIGNED A DEFINITIVE AGREEMENT TO MERGE THE TARGET BANK INTO WEST ONE BANK IDAHO AN AFFILIATE OF WEST ONE BANCORP IN A NEWS RELEASE WEST ONE BANCORP SAID IDAHO STATE BANK SHAREHOLDERS RECEIVED A TOTAL OF 66666 WEST ONE COMMON SHARES FOR ALL COMMON STOCK OUTSTANDING OF IDAHO STATE BANK 9401250153 940125 WHO'S NEWS BARNES GROUP INC BARNES GROUP INC BRISTOL CONN ALI A FADEL 38 YEARS OLD WAS NAMED PRESIDENT OF THE ASSOCIATED SPRING UNIT OF THIS MAKER OF DURABLEGOODS COMPONENTS SUCCEEDING THEODORE E MARTIN 54 WHO WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT OPERATIONS AT THE PARENT J GARY LEWIS 49 WAS NAMED PRESIDENT OF THE BOWMAN DISTRIBUTION UNIT SUCCEEDING JOHN M KNAPP WHO RESIGNED LAST YEAR 9401250152 940125 VALUE OF MERGERS ACQUISITIONS ROSE BY 86 LAST YEAR BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE VALUE OF ANNOUNCED MERGERS AND ACQUISITIONS ROSE 86 IN 1993 TO A LEVEL THAT HASN'T BEEN SEEN SINCE THE LATE 1980S A MERRILL LYNCH & CO SURVEY FOUND THE TOTAL VALUE OF PROPOSED TRANSACTIONS DISCLOSING A PURCHASE PRICE WAS 1764 BILLION COMPARED WITH 949 BILLION IN 1992 BUT THE NUMBER OF SUCH DEALS REMAINED RELATIVELY STEADY IN ALL 2664 TRANSACTIONS WERE ANNOUNCED DURING THE YEAR A MERE 4 INCREASE FROM A YEAR AGO ACCORDING TO THE SURVEY BY BUSINESS ADVISORY SERVICES A DIVISION OF MERRILL LYNCH BASED IN SCHAUMBURG ILL THE TOTAL VALUE OF MERGERS AND ACQUISITIONS WHICH WAS AS HIGH AS 2469 BILLION IN 1988 BEGAN DROPPING SIGNIFICANTLY IN 1990 THE LOWEST VALUE IN RECENT YEARS CAME IN 1991 WHEN DEALS TOTALED 712 BILLION ACCORDING TO MERRILL LYNCH DATA GIANT DEALS 1 BILLION OR MORE SHOWED THE SHARPEST RISE THE TOTAL VALUE OF THESE DEALS JUMPED 241 TO 101 BILLION FROM 296 BILLION IN 1992 THERE WERE 27 1 BILLIONPLUS TRANSACTIONS ANNOUNCED LAST YEAR COMPARED WITH 17 IN 1992 THE NUMBER OF DEALS VALUED AT MORE THAN 100 MILLION ROSE 22 AND THEIR TOTAL VALUE DOUBLED THE SURVEY SAID THE BIGGEST DEAL ANNOUNCED DURING THE YEAR WAS BELL ATLANTIC CORP'S ACQUISITION OF TELECOMMUNICATIONS INC MERRILL LYNCH VALUED THE DEAL AT 16 BILLION OF THE YEAR'S 15 LARGEST DEALS SIX WERE IN THE BROADCAST AND COMMUNICATIONS INDUSTRY ABOUT 22 OF THE YEAR'S MERGERS AND ACQUISITIONS WERE DEALS BETWEEN US AND FOREIGN COMPANIES A NUMBER CONSISTENT WITH 1992 LEVELS HOWEVER THE NUMBER OF FOREIGN BUYERS GREW TO 190 UP 16 FROM A YEAR AGO THE UK REMAINED THE MOST ACTIVE ARENA FOR BOTH FOREIGN ACQUISITIONS AND SALES WITH 52 BUYERS AND 83 SELLERS FOLLOWED BY CANADA WITH 44 BUYERS AND 49 SELLERS MERRILL LYNCH SAID BANKING AND FINANCE WAS THE MOST ACTIVE INDUSTRY IN THE MERGERSANDACQUISITIONS FIELD THERE WERE 296 DEALS IN THAT INDUSTRY IN 1993 COMPARED WITH 268 A YEAR EARLIER THE SURVEY ALSO FOUND THAT THE TOTAL VALUE OF BANKINGANDFINANCE DEALS ROSE 59 TO 262 BILLION FROM 165 BILLION BASED ON THE 929 TRANSACTIONS FOR WHICH METHODOFPAYMENT INFORMATION WAS AVAILABLE MERRILL LYNCH SAID 40 OF 1993 MERGERS AND ACQUISITIONS WERE ALLSTOCK DEALS AND 25 INVOLVED ONLY CASH THE OTHER 35 INVOLVED SOME COMBINATION OF CASH STOCK AND DEBT 9401250151 940125 CORPORATE FOCUS HEWLETTPACKARD AFTER MISSTEPS IN PCS HITS ITS STRIDE SALES MORE THAN DOUBLE AND COMPANY AIMS FOR TOPFIVE FINISH BY 1995 BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF HEWLETTPACKARD CO BEST KNOWN FOR ITS COMPUTER PRINTERS AND WORKSTATIONS IS POSING ITS FIRST SERIOUS CHALLENGE IN THE PERSONALCOMPUTER MARKET LAST YEAR IT MORE THAN DOUBLED ITS WORLDWIDE PC SALES TO ABOUT 640000 FROM 305000 IN 1992 ACCORDING TO ESTIMATES BY INTERNATIONAL DATA CORP A MARKETRESEARCH FIRM IN FRAMINGHAM MASS THAT PUTS IT JUST A NOSE BEHIND MAILORDER STAR GATEWAY 2000 INC WHICH HELD THE NO 10 SPOT IN MARKET SHARE FOR 1993 HP WAS 17TH IN 1992 NOW IT HAS PROCLAIMED THAT IT INTENDS TO BE IN THE TOP FIVE BY NEXT YEAR THERE IS NO COMPANY THEIR SIZE OR LARGER IN PC SHIPMENTS THAT HAS GROWN AS FAST SAYS ERIC LEWIS MANAGER OF PC HARDWARE RESEARCH FOR INTERNATIONAL DATA WHILE HP IS THE US'S SECONDLARGEST COMPUTER MAKER IN TERMS OF REVENUE ITS PC BUSINESS WAS A SIDESHOW UNTIL MID1992 AS COMPETITORS SUCH AS COMPAQ COMPUTER CORP RAPIDLY GAINED MARKET SHARE HP FUMBLED OFFERING OVERPRICED NARROWLY MARKETED MACHINES BUT WITH PC SALES GROWING FASTER THAN ANY OTHER PART OF THE HARDWARE INDUSTRY HP DECIDED LESS THAN TWO YEARS AGO TO GO AFTER THE MARKET WITH GUSTO CHOPPING PRICES AND MARKETING AGGRESSIVELY IF YOU WANT TO BE A MAJOR COMPUTER COMPANY YOU HAVE TO HAVE A SIGNIFICANT PRESENCE IN PERSONAL COMPUTERS SAYS BOB FRANKENBERG VICE PRESIDENT AND GENERAL MANAGER OF HP'S PERSONALINFORMATIONPRODUCTS GROUP HE NOTES THAT PCS NOW ACCOUNT FOR MORE THAN HALF OF WORLDWIDE COMPUTERHARDWARE SALES HP IS EMERGING JUST AS OTHER BIG COMPUTER MAKERS PUSH HARDER INTO THE PC BUSINESS THE PC IS ONE OF THE ONLY ATTRACTIVE SECTORS IN TERMS OF GROWTH SAYS PHILIPPE DE MARCILLAC DIRECTOR OF WORLDWIDE PC RESEARCH FOR DATAQUEST INC A MARKETRESEARCH FIRM IT IS ALSO A MARKET THAT IS FAR FROM SATURATED DIGITAL EQUIPMENT CORP LAST YEAR MORE THAN DOUBLED ITS PC SHIPMENTS AND MARKET LEADER INTERNATIONAL BUSINESS MACHINES CORP HAS BOOSTED SHARE THROUGH A RECENTLY STARTED PERSONALCOMPUTER DIVISION MEANWHILE HP'S PROWESS IN PCS COMES AFTER PAST FAILURES THE COMPANY INTRODUCED A LINE OF PCS IN THE EARLY 1980S THAT NEVER GAINED MUCH POPULARITY LARGELY BECAUSE THEY WEREN'T COMPATIBLE WITH THE IBM PC STANDARD AFTER SWITCHING TO IBM COMPATIBILITY IN THE MID1980S HOWEVER SALES STILL LANGUISHED SINCE HP'S PRICES WERE AS MUCH AS ONETHIRD HIGHER THAN THOSE OF RIVALS THE DIFFERENTIATION WAS IN QUALITY AND RELIABILITY MR FRANKENBERG SAYS SOME CUSTOMERS DID APPRECIATE THAT BUT NOT ENOUGH AT A SALES MEETING IN JUNE 1992 HP EXECUTIVES DECIDED TO CUT PRICES DRASTICALLY BUT THAT MEANT GETTING COSTS IN LINE IT CLOSED MANUFACTURING OPERATIONS IN BRAZIL AND IN GUADALAJARA MEXICO AND CUT ITS PC STAFF 40 MOST WENT TO OTHER DIVISIONS WITHIN THE COMPANY IT FELT A BIT LIKE JUMPING BLINDFOLDED OFF A SPRINGBOARD HOPING THERE WAS WATER IN THE POOL MR FRANKENBERG SAYS THEN THE NEW PRICING STRATEGY RECEIVED A HAND FROM AN UNLIKELY SOURCE COMPAQ THE HOUSTON PC MAKER STARTED A PRICE WAR IN THE SUMMER OF 1992 FORCING BRANDNAME COMPETITORS SUCH AS IBM AND APPLE COMPUTER INC TO LOP PRICES AT THAT TIME HP'S HIGHEND PERSONAL COMPUTER SOLD FOR ABOUT 8000 AND THE COMPETITION'S FOR ABOUT 5800 BY THE END OF LAST YEAR THE SAME UNITS COST LESS THAN 2000 EACH WITH THE PRICE WAR PRICES ON BRANDNAME MODELS FELL CLOSE TO THOSE OF CLONE MACHINES MADE BY SMALLER COMPANIES SENDING CUSTOMERS RUSHING TO BUY BRANDNAME COMPUTERSINCLUDING HP'S WHY NOT BUY A MERCEDES IF YOU CAN GET IT FOR THE SAME PRICE AS A YUGO MR FRANKENBERG SAYS IN THE FLOOD OF BUSINESS LAST YEAR VENDORS SUCH AS IBM AND COMPAQ COULDN'T KEEP UP WITH DEMAND HP HAD EARLIER EXPANDED ITS SALES EFFORT FROM SMALLER NICHE DEALERS TO INCLUDE BIG OUTLETS SUCH AS COMPUTERLAND CORP AND MICROAGE INC IT WAS THUS POSITIONED AS A BRANDNAME ALTERNATIVE THAT LARGE DEALERS COULD RECOMMEND WITH AN AMPLE INVENTORY IT WAS ABLE TO ACCOMMODATE THE NEW BUSINESS THEY GOT OUR ATTENTION AND THE CUSTOMER'S ATTENTION SAYS ALAN BERNHEIMER A VICE PRESIDENT OF PLEASANTON CALIFBASED COMPUTERLAND THE COMPANY CREDITS NOT ONLY AGGRESSIVE PRICING FOR ITS PC TURNAROUND BUT ALSO A NEWPRODUCT CYCLE THAT WAS SHORTENED TO SIX MONTHS FROM 18 MONTHS HP ALSO ADDED FEATURES TO SOME MODELS INCLUDING A COFFEE BREAK BUTTON THAT LETS A USER BLANK THE SCREEN DETERRING PRYING EYES WITHOUT TURNING OFF THE WHOLE MACHINE THAT FEATURE ALONE THE COMPANY SAID WAS RESPONSIBLE FOR THE SALE OF 75000 UNITS TO BANKERS INSURANCE COMPANIES AND FINANCIAL CONCERNS THE COMPANY SAID IT DOESN'T PROVIDE A BREAKDOWN OF REVENUE BY PRODUCT CATEGORY FOR COMPETITIVE REASONS BESIDES PCS HP MAKES PRINTERS WORKSTATIONS AND MASSSTORAGE DEVICES DESPITE ITS SUCCESSES MEETING ITS GOAL OF BECOMING A TOPFIVE PC MAKER WILL BE TOUGH BECAUSE ITS COMPETITORS ARE ALSO GROWING QUICKLY COMPAQ NO 3 WORLDWIDE IN PC SHIPMENTS NEARLY DOUBLED SHIPMENTS IN 1993 TO THREE MILLION FROM A YEAREARLIER 16 MILLION APPLE NO 2 BEHIND IBM ALSO BOOSTED ITS SHIPMENTS LAST YEAR BY NEARLY ONETHIRD TO 36 MILLION OTHER TOP10 VENDORS AST RESEARCH INC DELL COMPUTER CORP AND PACKARD BELL ELECTRONICS INC ALSO GREW SIGNIFICANTLY LAST YEAR I THINK THE PROSPECTS FOR HP ARE VERY GOOD AS IT RELATES TO ITS ABILITY TO DEAL WITH THIRDTIER CLONES SAYS DAVID BOUCHER A VICE PRESIDENT OF IBM'S PC UNIT FOR THE AMERICAS BUT THE QUESTION WILL BE WHETHER THEY HAVE THE STAYING POWER IN A VERY TOUGH MARGINSENSITIVE BUSINESS THE TRUE TEST FOR HP ANALYSTS SAY WILL BE WHEN IT AND OTHER PC MAKERS FINISH ABSORBING MARKET SHARE FROM SMALLER COMPETITORS AND TURN THEIR GUNS ON ONE ANOTHER WITH MOST LEADING MANUFACTURERS WELLEQUIPPED TO COMPETE WITH ONE ANOTHER MARKETSHARE GAINS WILL BE MORE DIFFICULT IN THE NEXT TWO YEARS SAYS TODD BAKAR SENIOR TECHNOLOGY ANALYST FOR HAMBRECHT & QUIST IT'S GOING TO BE A DOGFIGHT 9401250150 940125 AUTOS SUPERCAR DRAWS FEDERAL FUNDS TO BIG THREE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT PRESIDENT CLINTON'S SUPERCAR INITIATIVE LOOKS LIKE A GRAVY TRAIN THE 1 BILLION FEDERAL PROGRAM FOR DEVELOPING A NEW GENERATION OF ULTRAEFFICIENT ULTRACLEAN VEHICLES IS SHAPING UP TO BE A GOLDEN OPPORTUNITY FOR THE BIG THREE US AUTO MAKERS DETROIT WILL BE THE PRIMARY RECIPIENT OF THE RESEARCH FUNDS ALLOWING THE AUTO MAKERS TO BOLSTER THEIR RESEARCH AND DEVELOPMENT BUDGETS WITH FEDERAL DOLLARS WELL INTO THE NEXT CENTURY THE BIG THREE ARE TRYING TO STAY IN BUSINESS SAID DR MARY GOOD THE CLINTON APPOINTEE WHO IS SUPERVISING THE VENTURE IN A RECENT PRESS BRIEFING DR GOOD BLUNTLY EXPRESSED THE ADMINISTRATION'S SUPPORT OF THAT SAME OBJECTIVE THE GOAL OF THE SUPERCAR PROGRAM IS AN AFFORDABLE FAMILY SEDAN WITH THREE TIMES THE FUEL EFFICIENCY OF TODAY'S AVERAGE VEHICLE THE CONSEQUENCES OF BIG THREE CONTROL ARE HUGE THE SUPERCAR PROGRAM WILL HAVE NO INPUT FROM JAPANESE AUTO MAKERS WHICH DETROIT AND WASHINGTON ARE FIGHTING OVER TRADE ISSUES NO MANDATES FOR BUILDING ZEROEMISSION VEHICLES WHICH DETROIT OPPOSES IN CALIFORNIA AND THE NORTHEAST AND NO IMMEDIATE PRESSURE TO PRODUCE A MARKETABLE PRODUCT THE PROGRAM'S FIRST CONCEPT VEHICLE IS DUE IN SIX YEARS AND ITS FIRST PRODUCTION PROTOTYPE IS DUE IN 10 YEARS SUPPORTERS LIKE JOEL MOSES DEAN OF ENGINEERING AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY ARE OPTIMISTIC THE PROGRAM HE SAID IS OPENING THE DOORS TO UNIVERSITIES AND TO A NEW BREED OF ENGINEERING STUDENTS WHO ARE INTERESTED IN DOING GOOD THINGS FOR THE WORLD BUT ALSO IN MAKING MONEY FOR AMERICAN INDUSTRY BUT CRITICS SAY THAT UNDER THE BIG THREE'S LEADERSHIP THE SUPERCAR PROGRAM WON'T MOVE AS QUICKLY OR AGGRESSIVELY AS IT COULD THIS IS DETROIT'S SHOW SAID JOE MACEDA VICE PRESIDENT OF H POWER CORP A BELLEVILLE NJ DEVELOPER OF ALTERNATIVE FUEL TECHNOLOGIES THAT PARTICIPATED IN THE SUPERCAR PROGRAM'S FIRST WORKING MEETING RECENTLY IN WASHINGTON MOREOVER GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP HAVE BEEN PROMISED A SAY IN WHICH TECHNOLOGIES AND COMPANIES WILL BENEFIT FROM THE PROGRAM'S 1 BILLION BUDGET AND RESOURCES WHICH WILL COME FROM BOTH DETROIT AND WASHINGTON WASHINGTON WILL CONTRIBUTE THE RESEARCH AND DEVELOPMENT FUNDS AND DETROIT WILL ULTIMATELY PAY FOR MANUFACTURING THAT GIVES DETROIT INFLUENCE OVER ANY NATIONAL LAB OR FEDERAL AGENCY ENGAGED IN ALTERNATIVE FUEL RESEARCH SUCH AS THE DEPARTMENT OF ENERGY IN FACT THE BIG THREE'S BIGGEST PAYOFF FROM THE SUPERCAR EFFORT MAY BE A RELAXATION OF A BROAD ARRAY OF COSTLY REGULATIONS IF AN INDUSTRY WORKS CLOSELY WITH A GOVERNMENT AND YOU HAVE AN OPEN BOOK SUCH A GOVERNMENT WON'T HAVE TO REGULATE TO THE SAME EXTENT SAID FRANCOIS CAISTANG CHRYSLER'S VICE PRESIDENT OF TECHNOLOGY THE SUPERCAR PROGRAM MAY BE THE FIRST EXAMPLE OF WHAT GOVERNMENTINDUSTRY PARTNERSHIP WILL LOOK LIKE UNDER THE CLINTON ADMINISTRATION IN THE PAST WASHINGTON HAS FUNNELED BILLIONS OF RESEARCH AND DEVELOPMENT DOLLARS THROUGH ITS RICH POOL OF LABS LARGELY TO THE BENEFIT OF DEFENSE CONTRACTORS NOW THE CLINTON ADMINISTRATION IS RESLICING THE GOVERNMENT'S 78 BILLION R&D BUDGET PIE GIVING LESS TO DEFENSE AND MORE TO COMMERCIAL AND EXPORTORIENTED MANUFACTURERS LIKE THE BIG THREE SOME CLEANCAR ADVOCATES ARGUE THAT BY 2004 OTHER NATIONS AND INDUSTRIES WILL HAVE A JUMP ON THE BIG THREE BY THAT TIME THE WORLD THEY SAY MAY ALREADY BE FLOODED WITH SUPERCARS POWERED BY TECHNOLOGIES SUCH AS FUEL CELLS FLYWHEELS AND ADVANCED FORMS OF CHEMICAL BATTERIES THE MONEY IS ALL FUNNELED THROUGH THE BIG THREE SAID PAUL MILLER A SENIOR ENERGY FELLOW FOR THE W ALTON JONES FOUNDATION A CHARLOTTSVILLE VA ENDOWMENT THAT FUNDS ENVIRONMENTAL GROUPS THE SMALL ENTREPRENEURIAL FIRMS EVEN THE DEFENSE CONTRACTORS ARE PRETTY MUCH LIMITED BY WHAT THE BIG THREE ARE WILLING TO GIVE THEM THAT COULD MEAN THAT IN THE HUNT TO DEVELOP THE AUTOMOBILE OF THE FUTURE SOME CUTTINGEDGE IDEAS WON'T REACH MR CLINTON'S DESK AT THE PROGRAM'S FIRST WORKING MEETING ONLY ONE OF ITS 113 PARTICIPANTS CAME FROM THE GROWING NUMBER OF COMPANIES DEVELOPING ELECTRIC VEHICLES FOR CALIFORNIA'S ZEROEMISSION MANDATE AND ONE CAME FROM AEROVIRONMENT INC A MONROVIA CALIF COMPANY OWNED IN PART BY GENERAL MOTORS CALSTART A LOS ANGELESBASED GROUP OF ALTERNATIVE VEHICLE COMPANIES THAT WAS FORMED ESPECIALLY TO ACQUIRE FEDERAL RESEARCH GRANTS CURRENTLY SUPPORTS THE SUPERCAR EFFORT BUT THE ORGANIZATION'S PRESIDENT WARNS THAT COULD CHANGE IF THE BIG THREE STARTS TO EXERT TOO MUCH CONTROL WE HAVE BEEN ASSURED BY THE ADMINISTRATION THAT THIS WOULD BE MUCH MORE THAN A BIG THREE EFFORT SAID MIKE GAGE CALSTART'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT CERTAINLY THERE ARE SOME CONFLICTING MESSAGES HERE ALREADY THERE ARE SIGNS THAT TECHNOLOGIES UNPOPULAR IN DETROIT MAY GET SHORT SHRIFT IN THE SUPERCAR EFFORT BIG THREE EXECUTIVES ARE LOBBYING HARD TO ROLL BACK CALIFORNIA'S REGULATION THAT 2 OF ALL CARS SOLD IN THE STATE BY 1998 BE ELECTRIC OR ZERO EMISSION VEHICLES DR GOOD MR CLINTON'S UNDERSECRETARY FOR TECHNOLOGY AT THE COMMERCE DEPARTMENT SAID SHE EQUATES THE SEARCH FOR ZEROEMISSION VEHICLES WITH THE QUEST FOR PERPETUALMOTION MACHINES THAT'S A VIEW CERTAIN TO CHEER DETROIT THE SUPERCAR EFFORT WON'T HAVE MUCH DIRECTION IN ITS EARLY YEARS DR GOOD SAID AS IT PURSUES A WIDE ARRAY OF TECHNOLOGIES THEN THERE WILL BE A WINNOWING PROCESS THAT ISOLATES THE TECHNOLOGIES THAT MAKE MOST SENSE FOR A FAMILY SEDAN ALONG THE WAY SHE EXPECTS PLENTY OF CRITICISM WE ARE TRYING TO KEEP THIS SIMPLE FROM THE START BECAUSE WE WANT TO KEEP THIS SUCCESSFUL SAID DR GOOD A PAST CHAIRWOMAN OF THE NATIONAL SCIENCES BOARD BUT IF ALL WE DO IS END UP BICKERING AND NOTHING ELSE THEN I THINK THE PROGRAM WILL PROBABLY BE DISMANTLED AS I THINK IT SHOULD 9401250149 940106 THE BEST DAY CARE A PARENT AT HOME BY MICHAEL K MEYERHOFF HIGHQUALITY AFFORDABLE READILY AVAILABLE DAY CARE FORGET IT IT CAN'T HAPPEN WHILE OFFERING ALL WORKING PARENTS FIRSTRATE CHILDCARE SERVICES AT MODERATE FEES APPEARS TO BE AN ENLIGHTENED RESPONSE TO INESCAPABLE MODERN REALITIES IT ACTUALLY IS A TOTALLY IMPRACTICAL SOLUTION BASED ON A DISMAL SENSE OF DEFEATISM LET'S TAKE A LOOK AT THE REAL REALITIES BY NATURE HIGHQUALITY DAY CARE MUST BE ENORMOUSLY EXPENSIVE AND SOMEWHAT RESTRICTED REGULATIONS IN MODEL STATES STIPULATE A MAXIMUM OF THREE INFANTS OR FOUR TODDLERS TO ONE CAREGIVER AND MANY CHILD DEVELOPMENT SPECIALISTS WOULD CONTEND THAT 2TO1 AND 3TO1 ARE MORE APPROPRIATE RATIOS FURTHERMORE THE CAREGIVERS SHOULD POSSESS OUTSTANDING PERSONAL QUALITIES HAVE SUBSTANTIAL TRAINING AND EXPERIENCE AND BE WILLING TO STAY WITH THE JOB SO AS TO ENSURE AN ACCEPTABLE LEVEL OF CONSISTENCY FOR THE CHILDREN GIVEN THE REQUIRED RATIOS AND GIVEN THAT COMPETENT CAREGIVERS DESERVE COMMENSURATE SALARIES IT IS CLEAR THAT THE COST OF HIGHQUALITY DAY CARE GETS OUT OF HAND IN A HURRY IF YOU ADD IN THE OTHER FINANCIAL FACTORS FROM FACILITIES AND EQUIPMENT TO JUICE AND COOKIES YOU'RE TALKING ABOUT AMOUNTS OF MONEY THAT ARE WELL BEYOND THE MEANS OF MOST FAMILIES THAT BUSINESSES CAN'T CONTRIBUTE AS THEY STRUGGLE TO REMAIN COMPETITIVE AND THAT GOVERNMENT WON'T BE ABLE TO SUBSIDIZE WHILE STRIVING TOWARD TAX RELIEF AND DEFICIT REDUCTION EVEN IF THE FUNDS WERE MIRACULOUSLY FOUND WHERE WOULD THE VAST SUPPLY OF DAYCARE PERSONNEL COME FROM GIVEN THOSE RATIOS A LARGE PERCENTAGE OF WORKING PARENTS WOULD HAVE TO END UP WORKING AS CAREGIVERS FOR THE CHILDREN OF OTHER WORKING PARENTS IT WOULD BE CONSIDERABLY MORE COSTEFFECTIVE AND WOULD MAKE A LOT MORE SENSE IF MOST PARENTS SIMPLY OPTED TO TAKE CARE OF THEIR OWN INFANTS AND TODDLERS WHICH BRINGS US TO THE SUBJECT OF CHOICE THE NOTION THAT HAVING TWO PAYCHECKS IS NOW A NECESSITY IS NONSENSE SURE A LOT OF POVERTYSTRICKEN AND SINGLE PARENTS NEED DAY CARE TO SURVIVE BUT TOO MANY OF THE PARENTS CLAMORING FOR SUCH SERVICES AND THEREBY STRETCHING A SYSTEM BEYOND ITS CAPACITY ARE MERELY SEEKING TO SUSTAIN A LIFESTYLE THAT THEIR OWN PARENTS ONLY DREAMED ABOUT A GENERATION AGO AND NO MATTER WHAT LEVEL OF INCOME SOME COUPLES DECIDE IS INSUFFICIENT YOU WILL ALWAYS FIND OTHERS WHO CONCLUDE THAT IT'S ENOUGH TO GET BY FOR THE FEW YEARS THEIR CHILDREN WILL BE INFANTS AND TODDLERS ALTHOUGH EVERY FAMILY HAS THE RIGHT TO SET ITS OWN PRIORITIES IN THIS REGARD PLACING CHILD CARE COMPARATIVELY LOW ON ONE'S PERSONAL AGENDA DOES NOT BESTOW THE RIGHT TO INSIST THAT IT BE GRANTED A TOP SPOT ON THE NATION'S POLITICAL AGENDA OF COURSE IT WOULD BE GROSSLY UNFAIR TO CLASSIFY THE MAJORITY OF MIDDLECLASS PARENTS PLEADING FOR DAY CARE AS SELFISH CHILDNEGLECTING SYBARITES BUT LET'S BE HONEST ABOUT THIS ECONOMICS OFTEN IS JUST A SMOKESCREEN IF EARNING A FEW BUCKS TO MAKE ENDS MEET WERE THE MAJOR MOTIVATION WE WOULD BE HEARING MUCH MORE ABOUT SUCH MEASURES AS PARTTIME AND ATHOME JOBS FLEXTIME AND JOB SHARING THE REAL ISSUE UNDERLYING THE INCREASING DEMAND FOR DAY CARE IS EQUAL OPPORTUNITY FOR PARTICIPATION AND RECOGNITION IN THE WORKPLACE THERE IS NOTHING WRONG WITH SOMEONE FEELING THAT THE REWARDS OF CHILDREARING CAN'T COMPLETELY COMPENSATE FOR MAJOR SACRIFICES IN PROFESSIONAL FULFILLMENT AND CAREER ADVANCEMENT BUT MORE DAY CARE IS A BAD ANSWER THE REAL SOLUTION IS TWOFOLD FIRST SOCIETY MUST BE PERSUADED TO RECOGNIZE THE VALUE OF PARENTING BOTH FOR THE NATION AS A WHOLE AND FOR INDIVIDUAL DEVELOPMENT AFTER ALL WE HAVE A STRONG TRADITION OF RESPECTING AND REWARDING MILITARY SERVICE THOSE WHO HAVE SPENT A FEW YEARS IN THE ARMED FORCES AS WELL AS THOSE WHO TAKE REGULAR TIME OFF TO MEET RESERVE AND NATIONAL GUARD OBLIGATIONS ARE GIVEN OUR GRATITUDE AND WHEN IT COMES TO EMPLOYMENT AND PROMOTION POLICIES THEY ARE GIVEN AMPLE CREDIT FOR THE MANAGEMENT SKILLS ORGANIZATIONAL ABILITIES SELFDISCIPLINE AND OTHER ATTRIBUTES IT IS ASSUMED THEY HAVE GLEANED FROM THE EXPERIENCE NURTURING OUR CITIZENS OF THE FUTURE IS NO LESS CRITICAL THAN PROTECTING OUR BORDERS AND THE LESSONS LEARNED ARE NO LESS RELEVANT TO THE WORKPLACE THERE IS NO REASON WHY PEOPLE WHO HAVE DEVOTED SOME PORTION OF THEIR LIVES TO THIS ESSENTIAL TASK SHOULD NOT BE HELD IN AT LEAST AS MUCH ESTEEM AS SOLDIERS AND SAILORS SECOND ANY AND ALL QUESTIONS REGARDING CHILDCARE ROLES AND RESPONSIBILITIES MUST BE MOVED FROM THE EXCLUSIVE REALM OF MOTHERHOOD WOMEN WILL NEVER ACHIEVE EQUALITY AND PEACE OF MIND IN THE WORKPLACE UNTIL FATHERS ARE FORCED TO BEAR AN EQUAL BURDEN AT HOME AS LONG AS THIS REMAINS STRICTLY A WOMEN'S ISSUE WE WILL ALWAYS BE DEALING WITH INHERENTLY IMPERFECT ALTERNATIVES THOSE PUSHING FOR THE SIMULTANEOUS EXPANSION AND IMPROVEMENT OF DAYCARE SERVICES SAY THAT SOCIETY IN GENERAL AND MEN IN PARTICULAR WILL NEVER ACCEPT THESE ATTITUDE ADJUSTMENTS SADLY MANY OF THEM ARE THE SAME PEOPLE WHO 20 OR 30 YEARS AGO LAUGHED DEFIANTLY WHEN THEY WERE TOLD THAT THE SOUTH WOULD NEVER BE DESEGREGATED THAT STUDENT PROTESTS WOULD NEVER STOP A WAR AND THAT LITTLE GIRLS WOULD NEVER GROW UP TO BE DOCTORS LAWYERS ENGINEERS ENTREPRENEURS PLUMBERS AND COAL MINERS LET'S STOP FOOLING OURSELVES AND REALLY FACE THE FACTS WE HAVE COME A LONG WAY IN THE PAST TWO OR THREE DECADES BUT WE'VE MADE ONLY A HALFTURN TOWARD A FULL REVOLUTION JUST ASK THE DEDICATED DAYCARE PERSONNEL CURRENTLY LABORING AT SLIGHTLY ABOVE MINIMUM WAGE TO COPE WITH EVER GREATER NUMBERS OF INFANTS AND TODDLERS MR MEYERHOFF IS THE EXECUTIVE DIRECTOR OF THE EPICENTER INC A FAMILY ADVISORY AND ADVOCACY AGENCY BASED IN WELLESLEY HILLS MASS SEE RELATED LETTER LETTERS TO THE EDITOR NEW LOW IN BASHING WORKING WOMEN WSJ JAN 25 1994 9401060004 YY94 MM01 9401250147 940125 CREDIT MARKETS DEVELOPINGNATION BONDS CONTINUE TO DECLINE ON POLITICAL CONCERNS US TREASURYS WEAKEN BY TERENCE DONNELLY AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK POLITICAL FEARS SPARKED BY THE UPRISING IN CHIAPAS IN SOUTHERN MEXICO CONTINUED TO DEPRESS THE PRICES OF DEVELOPINGNATION BONDS YESTERDAY ALTHOUGH THE UPRISING BEGAN MORE THAN THREE WEEKS AGO AND THE SITUATION APPEARS TO BE UNDER CONTROL IN MEXICO INVESTORS HAVE BEGUN TO LOOK MORE CLOSELY AT POTENTIAL AND ACTUAL POLITICAL CRISES IN OTHER DEVELOPING NATIONS SUCH AS VENEZUELA THE RESULT HAS BEEN THE ONSET OF A BEARISH SENTIMENT IN THE MARKET FOR THESE HIGHYIELDING BONDS THE PRICES OF US TREASURYS DROPPED AS WELL THOUGH NOT AS SHARPLY THE BENCHMARK 30YEAR TREASURY BOND LOST MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO END AT 99 7/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 630 FROM 628 ON FRIDAY PRICES OF BRADY BONDS AND MOST DEVELOPINGNATION LOANS DROPPED FOR THE FOURTH CONSECUTIVE SESSION YESTERDAY AS TRADERS AND SOME INVESTORS RUSHED TO TAKE DEFENSIVE POSITIONS IN CASE THE BEARISH SENTIMENT PUSHES THE MARKET EVEN LOWER BRADY BONDS ARE SECURITIES ISSUED BY GOVERNMENTS AS PART OF A FOREIGNDEBT RESTRUCTURING PROGRAM DESIGNED BY FORMER US TREASURY SECRETARY NICHOLAS BRADY SINCE THEY ARE SOVEREIGN DEBT AND TEND TO BE VERY LIQUID BRADY BONDS ARE A GOOD BENCHMARK FOR A NATION'S BONDS A NUMBER OF MAJOR DEVELOPING NATIONS' BONDS LOST A POINT OR MORE INCLUDING BRADY BONDS OF MEXICO VENEZUELA ARGENTINA AND BRAZIL THE DECLINES LATER SPILLED OVER INTO THE MARKET FOR DEFAULTED GOVERNMENT LOAN PAPER THE SPILLOVER PROMPTED A FEW TRADERS TO QUESTION WHETHER THE ENTIRE DEVELOPINGNATION SOVEREIGNDEBT MARKET IS ACTUALLY MORE INTERDEPENDENT THAN THEY HAD THOUGHT IN PART THE LINKAGE BETWEEN SEEMINGLY UNCONNECTED ASSETS IS DUE TO THE FACT THAT THIS MARKET IS STILL VERY YOUNG ONE TRADER SAID WHILE A DROP IN OIL PRICES CAN BE EXPECTED TO AFFECT NIGERIA AND VENEZUELA IT'S HARDER TO UNDERSTAND HOW A BANKING CRISIS IN VENEZUELA COULD END UP HURTING MEXICO HE SAID ONE EXPLANATION MAY BE THAT SINGLE INVESTORS AND TRADERS ARE OFTEN ACTIVE IN A WIDE ARRAY OF ASSETS REQUIRING THEM TO BE AS FLUENT IN THE ECONOMIC RESTRUCTURING OF A COUNTRY SUCH AS ECUADOR AS THEY ARE IN THE POLITICAL MANEUVERING OF THE FORMER SOVIET UNION IN THE MINDS OF SOME INVESTORS A SUDDEN DROP IN VNESHEKONOMBANK LOANS OF THE FORMER SOVIET UNION CAN BE MADE UP BY PROFITTAKING IN MEXICAN BRADY BONDS SAID ANOTHER TRADER ANOTHER EXPLANATION MAY BE WORRIES ABOUT LOOMING POLITICAL PROBLEMS LUIS R LUIS PORTFOLIO MANAGER AT SCUDDER STEVENS & CLARK INC A BOSTON MUTUALFUND CONCERN SAID THE UPRISING MAY IN FACT PROVE AS IMPORTANT TO MEXICO'S POLITICAL HISTORY AS THE MEXICAN REVOLUTION MEXICO IS IN NEW POLITICAL WATERS MR LUIS SAID CHIAPAS MORE THAN NAFTA IS GOING TO FORCE MEXICAN POLITICIANS TO CHANGE THEIR ATTITUDES AND POLICIES AND DIRECT THEM TOWARD FISCALTYPE OF SOLUTIONS MEXICO IS WELL AWARE IT HAS TO IMPROVE ITS POOR HUMANRIGHTS REPUTATION MR LUIS ADDED AMONG SPECIFIC BRADY BONDS MEXICAN DISCOUNT BRADY BONDS FELL 1 1/2 POINTS OR 15 FOR A BOND WITH 1000 FACE VALUE TO 91875 AS INVESTORS WAITED TO SEE WHETHER THE GOVERNMENT'S ATTEMPTS TO MEDIATE A PEACEFUL RESOLUTION TO THE CHIAPAS UPRISING WOULD SUCCEED THE DISCOUNT BONDS ARE SO NAMED BECAUSE THEY HAVE BEEN CONVERTED FROM OLD FOREIGN DEBT AT A DISCOUNT TO FACE VALUE VENEZUELAN GOVERNMENT DEBT ALSO DROPPED TODAY WITH ITS PAR BRADY BONDS DOWN 2 3/8 POINTS OR 2375 FOR A BOND WITH 1000 FACE VALUE TO 6862 THE PAR BONDS HAVE BEEN CONVERTED FROM OLD FOREIGN DEBT AT FACE VALUE THE COUNTRY'S FISCAL PROBLEMS ARE SAD SAID ONE TRADER WHO JUST RETURNED FROM CARACAS VENEZUELA'S CAPITAL IT HAS GOT A REVENUE COLLECTION PROBLEM TIED TO A WORKETHIC PROBLEM HE SAID THE COUNTRY GOT RICH QUICKLY IN THE 1970S WITH THE RISE IN OIL PRICES BUT NOW THAT OIL IS COMING BACK DOWN THE COUNTRY HAS GOTTEN LAZY HIGHER INFLATION WELLSUBSIDIZED GASOLINE PRICES AND CONTINUED CONCERNS OVER THE POPULIST IDEOLOGICAL SLANT OF PRESIDENTELECT RAFAEL CALDERA CONTINUE TO WEIGH ON VENEZUELA DEBT PRICES AS WELL TRADERS SAID MR CALDERA HAS CALLED FOR THE SUSPENSION OF THE COUNTRY'S VALUEADDED TAX WHICH COULD HAVE A STRONG EFFECT ON THE COUNTRY'S FISCAL HEALTH AMONG THE OTHER BRADYS ARGENTINE DISCOUNT BONDS SLID 1/2 POINT TO 8625 WHILE BRAZIL IDU BONDS DROPPED 1 1/4 POINTS TO 845 IDU WHICH STANDS FOR INTEREST DUE AND UNPAID IS A SECURITY CREATED FROM BRAZIL'S UNPAID INTEREST ON FOREIGN DEBT CONCERNS ABOUT PROBLEMS AT HANWA CO THE TROUBLED JAPANESE METALTRADING FIRM COULD PROMPT SELLING OF MANY OF THE MOST LIQUID BRADY BONDS BY JAPANESE INVESTORS SAID JAMES SWANSON A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES HANWA IS BELIEVED TO HAVE LARGE POSITIONS IN BRADY BONDS OF SEVERAL NATIONS HOWEVER ONE THING THAT MAKES ME THINK WE WON'T HAVE A TRUE BEAR MARKET IS THAT THERE IS STILL A MANIA FOR YIELD SAID MR SWANSON IT'S STILL TOO SOON TO START SHORTING THE MARKET HE SAID BUT COMPARED WITH THE RECENT PERFORMANCE OF THE BOND MARKETS OF INDUSTRIALIZED NATIONS THE DEVELOPINGNATION BOND MARKET IS STILL DOING FINE HE EXPLAINED THE PRICES OF DEFAULTED GOVERNMENT LOANS ALSO ENDED LOWER ECUADOR MYRAS FELL 2 POINTS TO 465 WHILE PANAMA REFINANCING LOANS SANK 2 1/8 TO 6925 MEANWHILE THE DEBT OF THE FORMER SOVIET UNION DROPPED FIVE POINTS TO 38 IT REMAINED UNCLEAR WHETHER FINANCE MINISTER BORIS FYODOROV WOULD CONTINUE IN HIS POSITION MR FYODOROV MET TODAY WITH INTERPRIVATIZATION FUND PRESIDENT VLADIMIR SHCHERBAKOV THE INTERFAX NEWS AGENCY REPORTED LEADING SOME RUSSIAWATCHERS TO SPECULATE THAT MR SHCHERBAKOV IS BIDDING FOR THE OPEN FINANCEMINISTER SLOT DURING THE MEETING MR SHCHERBAKOV TRIED TO PERSUADE MR FYODOROV TO REMAIN IN THE GOVERNMENT INTERFAX SAID MEANWHILE NEW CANADIAN BONDS SWAMPED THE US CORPORATEBOND MARKET YESTERDAY AS ONTARIO SOLD 125 BILLION CANADIAN DOLLARS US953 MILLION OF 30YEAR GLOBAL BONDS THE DEAL COMES ON THE HEELS OF CANADIANDENOMINATED DEALS FROM HYDROQUEBEC WHICH SOLD C1 BILLION OF 10YEAR GLOBAL BONDS AND ROGERS CABLESYSTEMS LTD WHICH SOLD C300 MILLION OF JUNK BONDS GLOBAL BONDS ARE DESIGNED TO BE SOLD AND TRADED IN ALL THE WORLD'S MAJOR MARKETS OTHERWISE THE NEWISSUE MARKET WAS EXTREMELY QUIET GENERAL MOTORS CORP'S GENERAL MOTORS ACCEPTANCE CORP SOLD 300 MILLION OF FIVEYEAR NOTES WHILE IMPERIAL CREDIT INDUSTRIES INC SOLD 90 MILLION OF 10YEAR JUNK BONDS TRADING IN THE US INVESTMENTGRADE CORPORATEBOND MARKET WAS LIGHT WITH PRICES DOWN SLIGHTLY FOLLOWING US TREASURYS THE EXTREMELY LIGHT ACTIVITY IN THE JUNKBOND MARKET LEFT PRICES UNCHANGED MANY INVESTORS WILL ATTEND HIGHYIELD CONFERENCES SPONSORED EARLY IN THE WEEK BY SALOMON BROTHERS INC AND LATER IN THE WEEK BY KIDDER PEABODY & CO ONTARIO'S GLOBAL BONDS WERE PRICED AT 9842 WITH A 75 COUPON TO YIELD 7635 A LOWERTHANEXPECTED 053 PERCENTAGE POINT OVER THE GOVERNMENT OF CANADA'S 30YEAR BOND THE SPREAD IS THE DIFFERENCE BETWEEN THE YIELD ON THE ISSUER'S BOND AND THE YIELD OF THE GOVERNMENTISSUED DEBT BY LATE YESTERDAY THE PRICE OF THE BOND HAD DROPPED 042 POINT OR ABOUT 420 FOR A BOND WITH A 1000 FACE VALUE TO 98 THE YIELD ROSE TO 767 THE DEAL WAS PRIMARILY PLACED WITH US AND CANADIAN INVESTORS THROUGH JOINTLEAD MANAGERS GOLDMAN SACHS INTERNATIONAL LTD NESBITT THOMSON LTD AND SCOTIAMCLEOD INC EXPECTING THAT THEY WOULD HAVE MORE THAN ENOUGH TO DO IN THE NEXT SEVERAL DAYS MOST TREASURY PLAYERS WERE LYING LOW YESTERDAY THE BENCHMARK 30YEAR BOND DROPPED MORE THAN 1/4 POINT OTHER SECURITIES POSTED SMALLER LOSSES THE 10YEAR NOTE FOR EXAMPLE DROPPED LESS THAN 1/4 POINT TO 100 8/32 TO YIELD 570 COMPARED WITH 568 ON FRIDAY WITH 29 BILLION OF TWOYEAR AND FIVEYEAR US TREASURY NOTES TO BE SOLD TODAY AND TOMORROW RESPECTIVELY AND THE GOVERNMENT'S RELEASE OF FOURTHQUARTER GROSS DOMESTIC PRODUCT DATA DUE FRIDAY INVESTORS AND TRADERS DIDN'T WANT TO TAKE ON NEW POSITIONS YESTERDAY IN WHENISSUED TRADING THE TWOYEAR NOTE YIELDED 411 LATE YESTERDAY WHILE THE FIVEYEAR NOTE YIELDED 507 NEXT WEEK THE TREASURY LAYS OUT DETAILS OF ITS QUARTERLY REFUNDING PACKAGE IN WHICH IT SELLS NEW ISSUES TO PAY OFF MATURING ISSUES THAT PACKAGE WILL INCLUDE A NEW 30YEAR BOND 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 JAN 27 THE 13WEEK BILLS MATURE APRIL 28 1994 AND THE 26WEEK BILLS MATURE JULY 28 1994 MUNICIPAL BONDS ENDED WHERE THEY OPENED YESTERDAY LITTLE CHANGED AND NARROWLY MIXED WITH NEW ISSUANCE ONLY SLIGHTLY MORE ACTIVE THAN SECONDARY DEALINGS THE FOCUS TURNED TO ABSORBING THE SPATE OF NEW DEALS ALREADY PRICED THIS YEAR AND TO THE WEEK'S TWO LARGEST DEALS WHICH ARE EXPECTED TODAY THIS WEEK'S CALENDAR IS COMPARATIVELY LIGHT THE BULK OF IT IS ANTICIPATED TODAY WITH THE NEGOTIATED PRICINGS OF 750 MILLION SAN ANTONIO ELECTRIC AND GAS SYSTEM REVENUE REFUNDING BONDS AND 660 MILLION WASHINGTON PUBLIC POWER SUPPLY SYSTEM REFUNDING BONDS YESTERDAY'S ONE LARGE OFFERING WAS THE 1179 MILLION OF COLORADO SPRINGS COLO UTILITY SYSTEM IMPROVEMENT AND REFUNDING BONDS A PRUDENTIAL SECURITIES INC GROUP WHICH WON THE DOUBLEARATED BONDS IN COMPETITIVE BIDDING SET SERIAL BOND YIELDS TO RANGE FROM 325 IN 1996 TO 522 IN 2019 THE 4816 MILLION 5 1/8 TERM BONDS DUE 2023 WEREN'T PUBLICLY REOFFERED IN SECONDARY TRADING THE REEDY CREEK IMPROVEMENT DISTRICT'S 5 BONDS DUE 2019 ROSE 1/8 POINT TO 95 3/8 TO YIELD 530 THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 5 1/2 BONDS DUE 2014 WERE UNCHANGED AT 99 YIELDING 531 CITICORP'S CITIBANK TOOK ADVANTAGE OF STRONG DEMAND FOR CREDITCARD SECURITIES BRINGING A 798 MILLION GLOBAL OFFERING AT LOW COST THE LARGEST PART OF THE TRANSACTION THE 750 MILLION SENIOR CLASS WAS PRICED WITH A 465 COUPON AT 99858 TO YIELD 470 THAT WAS ONLY 0354 POINT ABOVE THE TREASURY'S 4 3/8 NOTES DUE NOVEMBER 1996 THE ISSUE HAS AN AVERAGE LIFE OF THREE YEARS CITIBANK COULDN'T HAVE CHOSEN A BETTER MOMENT FOR AN AGGRESSIVELY PRICED TRANSACTION INVESTORS FLUSH WITH CASH HAVE BEEN CLAMORING FOR SOMEWHAT SCARCE CREDITCARD PAPER CHARLES WAINEHOUSE TREASURER OF THE CREDITCARD PRODUCTS DIVISION OF CITIBANK NOTED THAT THE DEAL WAS STILL TRADING NEAR ITS PRICING LEVEL AFTER BEING FREED TO TRADE HE CALLED THAT A NEAT VALIDATION OF THE DEAL'S EXECUTION MEANWHILE MORTGAGEBACKED SECURITIES DRIFTED THROUGH AN UNEVENTFUL SESSION TO END LARGELY UNCHANGED GINNIE MAE 65 SECURITIES FOR FEBRUARY DELIVERY ROSE 1/32 TO 100 3/32 FREDDIE MAC GOLD 65 SECURITIES WERE UNCHANGED AT 100 6/32 AND FANNIE MAE 65 SECURITIES WERE UNCHANGED AT 100 STILL MORTGAGES ARE TRADING AT LOFTY LEVELS WITH YIELDS OF MOST SECTORS OF THE PASSTHROUGH MARKET AT HISTORICALLY TIGHT SPREADS OVER THE YIELDS OF THEIR TREASURY COUNTERPARTS 9401250146 940125 LETTERS TO THE EDITOR CAN'T BEAT CRIME JUST BLAME ACLU PERHAPS THE MOST REMARKABLE THING ABOUT COMMUNITARIAN AMITAI ETZIONI'S DEC 31 EDITORIALPAGE PIECE HOW OUR TOWNS FIGHT CRIME IS THAT HE BLAMES ONE OF THE NATION'S MOST INTRACTABLE AND COMPLEX SOCIAL PROBLEMS ON ONE RELATIVELY SMALL NONPROFIT ORGANIZATION THE AMERICAN CIVIL LIBERTIES UNION THE NEXT MOST REMARKABLE THING IS THAT HE EXONERATES THROUGH OMISSION THE PEOPLE WHO BEAR THE GREATEST RESPONSIBILITY FOR OUR CRIME PROBLEM THE LOCAL STATE AND FEDERAL ELECTED OFFICIALS WHO FOR SO MANY YEARS HAVE EVADED THEIR RESPONSIBILITY TO COME UP WITH SOLUTIONS THAT WORK BY PANDERING TO THE PUBLIC'S FEARS AND PASSING LAWS THAT SOUND TOUGH BUT DO LITTLE TO REDUCE CRIME THE TRUTH AS MR ETZIONI VERY WELL KNOWS IS THAT IF THE ACLU WERE TO FOLD TOMORROW THE CRIME RATE WOULD NOT DECREASE BY EVEN ONETENTH OF A PERCENTAGE POINT MR ETZIONI'S ARTICLE CONTAINS MANY MISSTATEMENTS OF ACLU POLICIES AND PRACTICES CONTRARY TO HIS CLAIMS THE ACLU HAS NEVER OPPOSED COMMUNITY CRIME WATCHES COMMUNITY ANTIDRUG PATROLS OR AIRPORT METAL DETECTORS WE ACTIVELY SUPPORT THE CONCEPT OF COMMUNITY POLICING THESE ACTIVITIES DO NOT RAISE SERIOUS CONSTITUTIONAL PROBLEMS AND THEY CAN UNDER SOME CIRCUMSTANCES EFFECTIVELY FIGHT CRIME BUT LET'S TAKE ONE OF MR ETZIONI'S CRIME FIGHTING MEASURES THAT WE DO OPPOSE ROADBLOCKS TO APPREHEND DRUNK AND DRUGUSING DRIVERS AS MANY LAW ENFORCEMENT PROFESSIONALS WILL TELL YOU ROADBLOCKS ARE A TERRIBLY INEFFECTIVE STRATEGY FOR APPREHENDING DRIVERS UNDER THE INFLUENCE OF DRUGS OR ALCOHOL IN OUR 1986 CHALLENGE TO A MICHIGAN STATE POLICE SOBRIETY CHECKPOINT PROGRAM THREE MICHIGAN COUNTY SHERIFFS TESTIFIED THAT ROADBLOCKS WERE AN INEFFICIENT USE OF SCARCE POLICE RESOURCES AND THAT DEPLOYING POLICE OFFICERS ON ROVING PATROLS TO LOOK FOR SIGNS OF ERRATIC OR INTOXICATED DRIVERS IN OTHER WORDS TO LOOK FOR PROBABLE CAUSE WAS THE PREFERABLE LAW ENFORCEMENT STRATEGY THIS TESTIMONY REFLECTED THE VIEW OF THE MICHIGAN SHERIFFS' ASSOCIATION WHICH HAD VOTED TO OPPOSE SOBRIETY CHECKPOINTS THE MICHIGAN TRIAL COURT WAS PERSUADED AND FOUND THAT SOBRIETY CHECKPOINTS CAN BE USED TO EFFECTUATE ONLY AN EXTREMELY LOW NUMBER OF ARRESTS AND THEY HAVE NO POTENTIAL FOR A SUSTAINED DETERRENT EFFECT MR ETZIONI ALSO BELITTLES THE FOURTH AMENDMENT PROBLEMS RAISED BY ROADBLOCKS AND CHECKPOINTS SUGGESTING THAT THEY ARE NO MORE INVASIVE THAN PASSING THROUGH A METAL DETECTOR AT AN AIRPORT PERHAPS HE HAS NEVER BEEN SUBJECTED TO ONE THE MICHIGAN PROGRAM THAT WAS STRUCK DOWN BY THE STATE COURTS REQUIRED THAT ALL VEHICLES PASSING THROUGH THE CHECKPOINT BE STOPPED EVERY DRIVER HAD TO SUBMIT TO AN EXAMINATION BY THE POLICE THAT INCLUDED THE FOLLOWING LOOKING AT THE DRIVER'S FACE AND EYES TO SEE WHETHER THEY WERE FLUSHED OR BLOODSHOT SMELLING THE DRIVER'S BREATH ENGAGING THE DRIVER IN CONVERSATION AND INSPECTING THE DRIVER'S SHIRT TO SEE WHETHER IT WAS UNBUTTONED ALL THIS WITHOUT ANY REASON TO SUSPECT ANY PARTICULAR PERSON OF WRONGDOING IF YOU HANG 'EM ALL YOU'LL GET THE GUILTY MR ETZIONI SEEMS TO BELIEVE WELL WE BELIEVE OTHERWISE SO DID THE PEOPLE WHO FOUNDED THIS COUNTRY AND SO DO MOST THINKING AMERICANS TODAY SEVERAL YEARS AGO THE AMERICAN BAR ASSOCIATION PUBLISHED ITS REPORT CRIMINAL JUSTICE IN CRISIS IT WAS BASED ON HEARINGS IN THREE CITIES AND A NATIONAL SURVEY OF MORE THAN 800 PROSECUTORS DEFENSE LAWYERS JUDGES AND HIGHRANKING POLICE OFFICIALS ONE OF THE QUESTIONS POSED TO THE LAW ENFORCEMENT OFFICIALS WAS WHETHER THEY BELIEVED CONSTITUTIONAL RIGHTS LIKE THE EXCLUSIONARY RULE AND THE MIRANDA WARNINGS POSED AN OBSTACLE TO EFFECTIVE LAW ENFORCEMENT MOST OF THEM SAID NO THE ABA CONCLUDED THAT TAKEN AS A WHOLE THE TESTIMONY AND THE SURVEY RESULTS DEMONSTRATE THAT CONSTITUTIONAL LIMITATIONS ARE NOT SEEN AS A RELATIVELY SIGNIFICANT PROBLEM BY THE PEOPLE WHO MUST WORK WITHIN THOSE LIMITATIONS 9401250145 940103 REGULATORY CHOKEHOLD A MOTHER TALKS TO MRS CLINTON BY MARIANNE M JENNINGS MY HUSBAND AND I HAVE THE PRIVILEGE OF RAISING A CHILD WITH SEVERE MENTAL AND PHYSICAL IMPAIRMENTS IF YOU WERE TO ASK ME THE MOST DIFFICULT ASPECT OF REARING THIS UNIQUE LITTLE GIRL THE ANSWER WOULD NOT BE THE COUNTLESS HOSPITALIZATIONS THE EQUIPMENT DEMANDS THE SLEEPLESS NIGHTS OR THE TOOLONG STARES WHEN WE'RE IN PUBLIC IT WOULD BE THE GOVERNMENT BUREAUCRACIES WE FACE TO PROVIDE FOR HER PROTECT HER AND HELP HER TAP HER POTENTIAL AS I LISTEN TO HILLARY RODHAM CLINTON TOUT THE WONDERS OF A NATIONAL HEALTH CARE PLAN I WANT TO SAY COME FOLLOW ME MRS CLINTON I CAN SHOW YOU WHAT GOVERNMENT DOES TO THOSE IT SETS OUT TO HELP I WOULD BEGIN BY INTRODUCING MRS CLINTON TO THE FIVE OR SO CASEWORKERS ASSIGNED TO OUR CLAIRE ONE IS FROM ARIZONA'S DEPARTMENT OF DEVELOPMENT DISABILITY ANOTHER IS WITH ARIZONA LONG TERM CARE ANOTHER IS WITH THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ANOTHER IS WITH APIPA AND I DON'T KNOW WHAT THAT STANDS FOR I LOST TRACK OF ACRONYMS AGENCIES AND CASEWORKERS LONG AGO THESE CASEWORKERS ASSIGNED AS ADVOCATES FOR MY DAUGHTER'S NEEDS COME TO OUR HOUSE ONE BY ONE ONCE EACH YEAR TO CONDUCT TWOHOUR INTERVIEWS AND VERIFY IN PERSON THAT CLAIRE A CHILD WHO IS NOW SIX AND HAS NEVER SPOKEN HAS NOT BEEN THE RECIPIENT OF A MIRACLE CURE I DON'T KNOW WHAT THE CASEWORKERS DO BEYOND THIS INTERVIEW BUT TWO THINGS HAVE OCCURRED TO ME FIRST BURGLARS COULD JUST ARRIVE AT OUR DOOR WITH A LOT OF FORMS AND AN ACRONYM AND ANYONE IN THE HOUSEHOLD WOULD LET THEM IN SECOND THERE MUST BE YET ANOTHER CONTRIVED CONSTITUTIONAL PRIVACY RIGHT OR SOME INSIDER TRADING RULE THAT PROHIBITS STATE AND FEDERAL EMPLOYEES WHO WORK WITH THE SAME FAMILY FROM USING ONE FILE COMPARING NOTES SHARING INFORMATION OR EVEN CARPOOLING FOR INTERVIEWS MY FAVORITE INTERVIEW WAS LAST FALL WHEN A CASEWORKER WAS ASSIGNED TO REDO HUNDREDS OF INTERVIEWS AS PART OF A NEW TOTALQUALITY MANAGEMENT PROGRAM IF I COULD INTRODUCE MRS CLINTON TO OUR FIVE CASEWORKERS I WOULD ASK HER TO POSE A HYPOTHETICAL QUESTION TO THEM ABOUT CLAIRE'S COVERAGE MRS CLINTON WOULD GET FIVE TO EIGHT DIFFERENT ANSWERS THE EIGHT IS BECAUSE SOME OF THE CASEWORKERS WHO BUY INTO THE NEW TQM PROGRAM WOULD GO BEYOND THE CALL OF DUTY AND GIVE US TWO TO THREE WRONG POSSIBILITIES I WOULD THEN TAKE MRS CLINTON INTO THE WORLD OF TITLE XIX A FEDERAL BENEFITS PROGRAM ADMINISTERED BY THE STATE FOR CHILDREN UNDER 19 WHO HAVE PERMANENT DISABILITIES THEORETICALLY TITLE XIX MEANS SUMMER SCHOOL SWIMMING PROGRAMS RESPITE CARE THERAPY AND A HOST OF SERVICES THAT MAKE IT SOUND LIKE A LUXURY SPA REALITY IS QUITE ANOTHER STORY TITLE XIX QUALIFIES CHILDREN ON THE BASIS OF NEED IE INCOME OR DEGREE OF DISABILITY CLAIRE QUALIFIED ON THE BASIS OF DISABILITY BUT WE ARE STILL REQUIRED ONCE EACH YEAR TO SUBMIT TO AN INOFFICE INTERVIEW WITH YET ANOTHER CASEWORKER IN WHICH I MUST GIVE COPIES OF OUR CAR TITLES HOUSE DEED BANK ACCOUNT STATEMENTS W2S AND THE LIKE A SAMPLE CASEWORKER COMMENT FROM ONE YEAR'S INTERVIEW I SEE YOU HAVE A NEW PIANO IN YOUR HOME CLAIRE DOESN'T PLAY THIS DOES SHE I HAD TO WONDER WHY SOMEONE LOOKING AT A CHILD WHO CAN'T SIT HOLD HER HEAD UP OR MAKE ANY DISCERNIBLE VOLUNTARY MOVEMENTS FELT COMPELLED TO ASK SUCH A QUESTION ONE YEAR WE MADE THE MONUMENTAL MISTAKE OF ADDING CLAIRE TO OUR CAR TITLE CLAIRE MUST BE ON THE CAR TITLE IN ARIZONA FOR US TO HAVE A HANDICAPPED LICENSE PLATE WHEN WE HAD ONLY A MOVEABLE PERMIT THAT WAS PLACED IN THE FRONT WINDOW PEOPLE YELLED AT US IN PARKING LOTS WITH OUR OFFICIAL PLATES WE WERE SAVED FROM SUCH GROCERY STORE SKIRMISHES BUT I HAD TO FACE THE GLARE OF A TITLE XIXER WHO SAID IS CLAIRE DRIVING THIS CAR I WAS REQUIRED TO SIGN A WITNESSED STATEMENT THAT SAID OUR CORTICALLY BLIND KINDERGARTNER DID NOT TAKE THE CHEVROLET SUBURBAN OUT FOR SPINS DURING OUR INCOME INTERVIEW LAST YEAR A CASEWORKER SPOTTED OUR MEDICAL EXPENSES THEY ARE OUR BIGGEST EXPENSE EVEN WITH INSURANCE EXCEEDING OUR HOUSE PAYMENTS AND FOOD COSTS EACH MONTH THE CASEWORKER ASKED WHY WOULD YOU PAY MEDICAL BILLS I NEVER KNOW ABOUT TRICK QUESTIONS IN BUREAUCRATIC TERRITORY SO I RESPONDED BECAUSE WE OWE THEM SHE THEN EXPLAINED THE FIRST GOVERNMENT EMPLOYEE IN FOUR YEARS TO SPOT THE ISSUE THAT TITLE XIX COVERED ALL OF CLAIRE'S MEDICAL EXPENSES NOT COVERED BY OTHER INSURANCE I ASKED HOW COME NO ONE EVER TOLD ME THIS TO WHICH SHE RESPONDED BECAUSE THEY DIDN'T KNOW ONCE YOU'RE IN TITLE XIX IT IS DISNEY'S SPACE MOUNTAIN DARK AND TWISTED IN 1992 I BEGAN ASKING FOR SUMMER SCHOOL APPROVAL IN APRIL I RECEIVED APPROVAL ON JULY 22 THREE DAYS BEFORE SUMMER SCHOOL ENDED LAST YEAR I BEGAN THE SUMMER SCHOOL APPROVAL QUEST IN FEBRUARY I GOT IT IN APRIL BUT SOMEONE FORGOT TO PUT CLAIRE'S NAME ON THE REGISTRATION LIST I FOUND THIS OUT AFTER A TWOHOUR WAIT IN THE REGISTRATION LINE I PAID FOR SUMMER SCHOOL MYSELF AND HAVE SINCE LEARNED THE TERM REFUND IS NOT PART OF TITLE XIX I BEGAN USING OUR NEWLY DISCOVERED TITLE XIX MEDICAL BENEFITS IN AUGUST IN JUST SIX WEEKS I RECEIVED AUTHORIZATION FOR A NEW WHEELCHAIR AND A SCOLIOSIS JACKET IN OCTOBER I GOT A CALL FROM A CASEWORKER WHO INFORMED ME THAT CLAIRE'S TITLE XIX BENEFITS WERE BEING TERMINATED AS OF THAT DAY HE HAD DISCOVERED ON THE FORMS THAT I FILL OUT FOR THE FINANCIAL INTERVIEW A 1600 BANK ACCOUNT FOR CLAIRE IT WAS A BURIAL ACCOUNT WITHIN THE 1500 LIMIT ALLOWED BY STATUTE BUT IT HAD EARNED INTEREST CLAIRE HAD TOO MUCH INCOME I OFFERED TO CLOSE THE ACCOUNT TOO LATE HE SAID THEN HE ADDED BUT YOU CAN ALWAYS COME DOWN AND REAPPLY FOR TITLE XIX IT TOOK ME SIX MONTHS TO GET QUALIFIED THE FIRST TIME I SHOULD HAVE US REINSTATED JUST IN TIME FOR SUMMER SCHOOL THIS YEAR I AM A LAWYER WHO TEACHES AND WRITES ABOUT ADMINISTRATIVE PROCESS YET THIS SYSTEM IS BEYOND MY EXPERTISE HOW DO PARENTS WITH LANGUAGE BARRIERS LITTLE OR NO KNOWLEDGE OF DUE PROCESS AND NONCOMPULSIVE PERSONALITIES COPE I CAN SHOW MRS CLINTON THAT PROGRAMS LIKE HERS ALREADY EXIST I CAN SHOW HER THE PAPERWORK THE IDIOSYNCRATIC RULES THE INSENSITIVITY THE ILLTRAINED WORKERS AND A BUREAUCRACY AS DEEP AS THE MISSISSIPPI AT ST LOUIS I CAN SHOW HER A SYSTEM THAT MUCH LIKE HER PROPOSAL WAS INTENDED TO HELP THE REALITY IS THAT HELP RARELY MAKES IT TO OUR CLAIRE MS JENNINGS IS A PROFESSOR OF LEGAL AND ETHICAL STUDIES IN THE COLLEGE OF BUSINESS AT ARIZONA STATE UNIVERSITY AND A COLUMNIST FOR THE ARIZONA REPUBLIC SEE RELATED LETTER LETTERS TO THE EDITOR WE ABHORRED INTRUSION DURING FINAL ILLNESS WSJ JAN 25 1994 9401030024 YY94 MM01 9401250143 940125 INTERNATIONAL JAPAN'S LEADER SEEKS TO NEGOTIATE PACT WITH LDP TO SAVE REFORMS BUT PROSPECTS REMAIN DIM AS CAMPS FAIL TO AGREE ON RULES FOR MEETING BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S EMBATTLED PRIME MINISTER MORIHIRO HOSOKAWA SOUGHT MONDAY TO SAVE HIS POLITICAL REFORM PACKAGE BY NEGOTIATING COMPROMISE WITH OPPONENTS PROSPECTS HOWEVER REMAINED DIM THE RULING COALITION AND THE OPPOSITION LIBERAL DEMOCRATIC PARTY SPENT MUCH OF THE DAY HAGGLING OVER THE GROUND RULES FOR THE FORMAL COMMITTEE MEETING NECESSARY TO RESUSCITATE THE DYING LEGISLATION AS OF MONDAY NIGHT NO AGREEMENT HAD BEEN REACHED AND SUCH A SESSION WOULD LIKELY OPEN WEDNESDAY AT THE EARLIEST EVEN IF SUCH A MEETING DOES TAKE PLACE SOME LDP LEADERS SAID OPENLY IT WOULD LIKELY FAIL TO PRODUCE ANY COMPROMISE MR HOSOKAWA'S PROMISE TO ENACT SWEEPING ELECTORAL REFORMS BEFORE THE CURRENT PARLIAMENT SESSION ENDS SATURDAY SUFFERED A SEVERE BLOW LAST WEEK WHEN THE UPPER HOUSE OF PARLIAMENT VOTED DOWN THE PACKAGE IF HE FAILS HE MAY BE FORCED TO RESIGN OR CALL SNAP ELECTIONS THE CRISIS HAS TRIGGERED FEARS OF A DEBILITATING POLITICAL VACUUM AT AN INOPPORTUNE TIME THE ECONOMY IS STALLED AND RESCUE MEASURES HAVE BEEN STUCK WHILE POLITICIANS FIGHT OVER THE ANTICORRUPTION AND REDISTRICTING BILLS MR HOSOKAWA IS SCHEDULED TO MEET PRESIDENT CLINTON FOR TRADE TALKS IN WASHINGTON IN THREE WEEKS HIS ABILITY TO DELIVER THE EXPECTED AGREEMENTS COULD BE IMPAIRED PANICKED INVESTORS FORCED THE NIKKEI STOCK INDEX DOWN MORE THAN 950 POINTS MONDAY SOME POLITICIANS HOPING TO CONTAIN THE FALLOUT SAID MR HOSOKAWA SHOULD STAY IN OFFICE THIS CHAOS IS ALREADY DRAWING WORLD ATTENTION SAID KOKEN NOSAKA A LEADER OF THE SOCIALIST PARTY THE LARGEST PARTY IN THE COALITION BUT ONE THAT IS DEEPLY DIVIDED OVER THE REFORMS FURTHER DETERIORATION WOULD BE UNDESIRABLE THE POPULAR MR HOSOKAWA SEEMED TO DRAW CONTINUED SUPPORT FROM MANY VOTERS DESPITE HIS TROUBLES POLITICAL REFORM IS WHAT THE PEOPLE WISH SO I HOPE HE WON'T THROW IT AWAY HALFWAY MITSUAKI MIZUNO A GOVERNMENT EMPLOYEE SAID MONDAY BOARDING A SUBWAY TO STEP DOWN WOULDN'T BE RIGHT SACHIKO NARITA A TOKYO LIFE INSURANCE SALESWOMAN CONCURRED SAYING HOSOKAWASAN ISN'T THE ONLY ONE TO BE BLAMED BESIDES SHE ADDED WHOEVER REPLACES HIM WOULD MAKE NO DIFFERENCE THE REFORM BILLS LOST LAST WEEK'S VOTE BECAUSE A LARGE BLOC OF SOCIALISTS DEFIED THEIR LEADERS AND VOTED AGAINST THE PACKAGE NOW MANY COALITION MEMBERS SAY THEY ARE WILLING TO AMEND THE BILLS TO SATISFY THE OPPOSITION LDP EVEN THOUGH THE CHANGES WOULD RISK LOSING EVEN MORE SOCIALIST SUPPORT SPECIFICALLY THE LDP WANTS TO WEAKEN THE PROVISIONS LIMITING BUSINESS DONATIONS TO POLITICIANS AND TO CHANGE THE COMPOSITION OF THE NEW ELECTORAL SYSTEM IN A WAY BELIEVED MORE FAVORABLE TO THE LDP NONSOCIALIST COALITION MEMBERS SAY ANY REFORM PACKAGE EVEN A WEAKENED VERSION WOULD BE BETTER THAN NONE TO STRIKE A DEAL THE COALITION NOW WANTS TO FORM A COMMITTEE SPLIT EVENLY BETWEEN REPRESENTATIVES OF THE UPPER HOUSE AND THE LOWER HOUSE THE LATTER PASSED THE BILLS IN NOVEMBER IF TWOTHIRDS OF THE COMMITTEE MEMBERS CAN AGREE ON AN AMENDED VERSION THEN THE BILLS WOULD BE SENT BACK TO THE TWO HOUSES REQUIRING MAJORITY SUPPORT IN BOTH WHILE THE LDP LEADERSHIP HAS BEEN LUKEWARM ON ANY SORT OF REFORM A LARGE GROUP OF PARTY MEMBERS SAY THEY WANT IT MR HOSOKAWA IS HOPING THAT BY PUTTING THE ISSUE TO ONE FINAL TEST HE CAN DRAW THEIR SUPPORT THE LDP LEADERSHIP RISKS LOSING THE LDP AS A UNIFIED PARTY IF THEY DON'T COOPERATE WITH MR HOSOKAWA SAID JESPER KOLL AN ECONOMIST AT SG WARBURG IN TOKYO AND AN AIDE TO A PROREFORM LDP POLITICIAN 9401250142 940125 ODE ON SOME URNS OF STOLEN GREASE BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL BUT THE THICK SLIMY GOO THAT ABOUNDS IN GREASE TRAPS SAY POLICE WHEN THERE'S NO ONE TO WITNESS THE SIGHT THEY'LL PUMP OUT THE GREASE BY THE TON AND THE POUND WHEN THESE OUTLAWS BY TRUCK HAUL THEIR BOOTY AWAY IN NORTH HOUSTON GETS SPLATTERED WITH LARD BY THESE BUMS IT'S IN PLASTICS AND PAINTS IT'S GOT USES GALORE ARE WORTH 15 CENTS PER THE POUND TO THE BUYERS ON THE RUES OF NEW ORLEANS IN FACT TOO THEY DO IT IT'S A CRIME NO ONE TAKES VERY SERIOUSLY WHEN THIS WINTER THEY STOLE 16 TONS IN A WEEK FOR THE COPS STAKED THEM OUT AND CAUGHT THEM REDHANDED BUT THEIR QUARRY MADE SURE THAT THIS TIME THEY WERE HUNTED INSISTING THAT SOMEBODY HELP RIGHT THIS WRONG IT'S THE SQUEAKIEST WHEEL THAT FIRST GETS THE GREASE 9401250141 940125 BROKERAGE FIRMS' NET RISES BUT ANALYSTS SEE TROUBLE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPPING A BLOCKBUSTER YEAR IN THE BROKERAGE BUSINESS THREE OF THE NATION'S LARGEST SECURITIES FIRMS REPORTED SHARPLY HIGHER PROFITS FOR THE FOURTH QUARTER AND FULL YEAR BUT DESPITE UNEXPECTEDLY HUGE COMMISSION REVENUES AND STRONG SEASONAL TRADING PROFITS THE RESULTS DIDN'T WOW WALL STREET MANY BROKERAGEINDUSTRY STOCKS FELL ON THE NEWS THAT'S BECAUSE OF DARK CLOUDS GATHERING ON THE HORIZON SOME ANALYSTS CONTEND EVEN A MODEST UPTICK IN INTEREST RATES COULD MAKE 1993'S RESULTS THE LAST GASP OF WALL STREET'S THREEYEAROLD BOOM IN SECURITIES UNDERWRITING MERRILL LYNCH & CO THE NATION'S LARGEST BROKER AND A BAROMETER FOR THE INDUSTRY REPORTED A 57 JUMP IN FOURTHQUARTER EARNINGS AND RECORD 1993 NET INCOME OF 136 BILLION THE FIRM'S REVENUE FOR THE FULL YEAR SURGED IN ALMOST EVERY CATEGORY TO A RECORD 1659 BILLION ALSO REPORTING ROBUST RESULTS WERE PAINEWEBBER INC AND TRAVELERS INC PARENT OF SMITH BARNEY SHEARSON INC SIMILAR RESULTS ARE EXPECTED TO FOLLOW IN COMING WEEKS FROM OTHER BROKERS LOW INTEREST RATES POWERED THE PROFITS SURGE US CORPORATIONS ARE BOLSTERING THEIR BALANCE SHEETS BY SELLING STOCK PAYING DOWN BIG CHUNKS OF THEIR DEBT AND REFINANCING MUCH OF THE REST AT HISTORICALLY ATTRACTIVE INTEREST RATES MEANWHILE MORE INDIVIDUAL INVESTORS ARE TURNING TO STOCKS TO BOLSTER THEIR PORTFOLIOS' RETURNS YOU WOULD SEE AN END TO THE MOMENTUM IF INTEREST RATES WENT UP A POINT PREDICTS GUY MOSZKOWSKI ANALYST AT SANFORD C BERNSTEIN & CO INDUSTRY ANALYSTS ARE EXPECTING THE BROKERAGE INDUSTRY'S COMBINED 1994 EARNINGS TO FALL ABOUT 10 TO 15 BELOW 1993 LEVELS BASED ON FOURTHQUARTER RESULTS THE BLOOM IS NOT OFF THE ROSE SAYS JAMES HANBURY ANALYST AT WERTHEIM SCHRODER & CO BUT HE ADDS IF YOU LOOK AT THE STOCKS IT'S ANOTHER MATTER BUYERS APPARENTLY HAVE ANTICIPATED ALL OF THE INDUSTRY'S GOOD NEWS THE DOW JONES INDEX OF THE BROKERAGE INDUSTRY GROUP PEAKED IN LATE SUMMER OF LAST YEAR BUT SECURITIESINDUSTRIES OFFICIALS NOTE THAT ANALYSTS HAVE BEEN WARNING FOR MONTHS THAT THE SKY IS ABOUT TO FALL AND YET THE BROADBASED BOOM CONTINUES AS DOES THE FLOW OF MONEY TO WALL STREET AT PAINEWEBBER WHERE FOURTHQUARTER NET SURGED 37 ABOVE THE YEAREARLIER LEVEL DONALD MARRON CHAIRMAN SAID THE INCREASE WAS NOT DEPENDENT ON ANY SINGLE BUSINESS OR ANY SINGLE ACTIVITY FEES FROM THE FIRM'S ASSET MANAGEMENT BUSINESS WHICH IS SOMEWHAT INSULATED FROM INTERESTRATE CLIMBS WERE HIGH ENOUGH TO COVER 50 OF OUR FIXED COSTS OF THE FIRMS REPORTING EARNINGS MERRILL SAID FOURTHQUARTER NET WAS 3472 MILLION OR 153 A SHARE COMPARED WITH 2214 MILLION OR 99 CENTS A SHARE A YEAR EARLIER MERRILL'S 1993 EARNINGS INCLUDED AN ACCOUNTING CHANGE THAT REDUCED THE FIRM'S NET BY 354 MILLION BEFORE THE ACCOUNTING CHANGE WHICH RELATED TO THE ADOPTION OF NEW ACCOUNTING TREATMENTS FOR EMPLOYEE RETIREMENT BENEFITS AND SECURITIES 1993 PROFIT WAS 139 BILLION OR 614 A SHARE AT PAINEWEBBER FOURTHQUARTER NET WAS 569 MILLION OR 111 A SHARE UP FROM 414 MILLION OR 78 CENTS A SHARE COMMISSIONS INCREASED 29 FROM THE YEAREARLIER PERIOD TO 2655 MILLION FOR THE YEAR NET ROSE 15 TO A RECORD 2462 MILLION AS REVENUE GAINED 19 TO 4 BILLION TRAVELERS INC THE SUCCESSOR TO PRIMERICA CORP REPORTED A 35 RISE IN FOURTHQUARTER EARNINGS REFLECTING THE ACQUISITION OF THE SHEARSON BROKERAGE FIRM AND IMPROVED OPERATING RESULTS IN ITS OTHER BUSINESSES TRAVELERS' INVESTMENTSERVICES BUSINESS WHICH INCLUDES SMITH BARNEY SHEARSON SHOWED STRONG GROWTH IN OPERATING EARNINGS THE INCLUSION OF SHEARSON EXPLAINS MUCH OF THE GROWTH BUT AS WITH OTHER BROKERAGE FIRMS IT WAS HELPED BY THE BULL MARKET FOR STOCKS AS A RESULT THE COMPANY MADE MORE INVESTMENT BANKING FEES HIGHER PROFITS FROM CAPITAL MARKETS TRADING AND HIGHER COMMISSIONS SANFORD WEILL CHAIRMAN OF TRAVELERS NOTED THAT THE COMPANY IS WELLDIVERSIFIED AND TOOK ISSUE WITH THE NOTION THAT PROFITS OF THE NEW TRAVELERS WILL GET HAMMERED IF THE STOCK MARKET FALLS WE HAVE A COMPANY WHERE MORE THAN HALF OUR PROFITS COME FROM RECURRING SOURCES HE SAID IF THE MARKET GOES DOWN WE WILL STILL HAVE THOSE ENGINES OPERATING FOR US IT'S NOT LIKE WE'RE JUST IN THE BROKERAGE BUSINESS RESULTS DON'T INCLUDE FULL RESULTS OF TRAVELERS INSURANCE WHICH THE COMPANY ACQUIRED AT YEAR END IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERRILL FELL 75 CENTS TO 40375 PAINEWEBBER DROPPED 625 CENTS TO 2575 AND TRAVELERS ROSE 25 CENTS TO 3950 GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9401250140 940125 COMPUTER SCIENCES CORP EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT WON A FIVEYEAR CONTRACT WITH FORD MOTOR CO'S EUROPEAN PARTSANDSERVICES OPERATIONS INDUSTRY OFFICIALS SAY THE CONTRACT VALUE IS ABOUT 100 MILLION UNDER THE CONTRACT COMPUTER SCIENCES WILL OVERSEE INFORMATIONTECHNOLOGY FUNCTIONS FOR THAT PART OF FORD WHICH SERVES CUSTOMERS OF 3000 DEALERS IN 17 COUNTRIES FROM ITS HEADQUARTERS NEAR COLOGNE GERMANY THE COMPANY WILL MANAGE TWO PRIMARY FORD DATA CENTERS IN THE UNITED KINGDOM AND GERMANY PLUS OTHERS IN FRANCE SPAIN ITALY AND SWEDEN 9401250139 940125 LATEX RESOURCES ACQUISITION TULSA OKLA LATEX RESOURCES INC SAID IT COMPLETED THE ACQUISITION OF 2 MILLION IN ENERGY PROPERTIES MOSTLY NATURAL GAS FROM A SELLER THAT WASN'T IDENTIFIED THE COMPANY SAID THE ACQUISITION OF PRODUCING PROPERTIES WILL INCREASE ITS DOMESTIC RESERVES BY ABOUT 15 AND ADD NEARLY 1 MILLION A YEAR TO CASH FLOW SOME OF THE PROPERTIES ARE IN THE GULF COAST AREAS OF THE US 9401250138 940125 INTERNATIONAL ELF AQUITAINE GLOBAL PLACEMENT PARIS FRANCE'S BANQUE NATIONALE DE PARIS BANQUE PARIBAS AND CREDIT LYONNAIS WILL DIRECT THE GLOBAL PLACEMENT OF 665 MILLION SHARES IN THE SCHEDULED PRIVATIZATION OF ENERGY GROUP SOCIETE NATIONALE ELF AQUITAINE THE THREE BANKS SAID IN A JOINT STATEMENT MEANWHILE THE PLACEMENT OF ELF SHARES AMONG US AND JAPANESE INVESTORS WILL BE LEADMANAGED BY MERRILL LYNCH & CO AND DAIWA SECURITIES RESPECTIVELY 9401250137 940125 UPJOHN BUYS RIGHTS TO DRUG KALAMAZOO MICH UPJOHN CO SAID IT ACQUIRED US AND CANADIAN MARKETING RIGHTS FOR THE CANCER COMPOUND IRINOTECAN FROM YAKULT HONSHA OF TOKYO IN RETURN UPJOHN SAID IT GRANTED YAKULT HONSHA CODEVELOPMENT AND COMARKETING RIGHTS IN JAPAN FOR UPJOHN'S CANCER DRUG ADOZELESIN DAIICHI PHARMACEUTICALS CO LTD OF TOKYO WILL CONTINUE TO COLLABORATE ON THE DEVELOPMENT OF IRINOTECAN AND COPROMOTE THE DRUG WITH UPJOHN IN THE US 9401250136 940125 DAUPHIN DEPOSIT PLANS BUYBACK HARRISBURG PA DAUPHIN DEPOSIT CORP SAID ITS BOARD HAS AUTHORIZED THE REPURCHASE OF AS MANY AS ONE MILLION COMMON SHARES CURRENTLY DAUPHIN HAS ABOUT 325 MILLION SHARES OUTSTANDING IN A NEWS RELEASE THE COMMERCIALBANKING CONCERN SAID IT EXPECTS TO USE AVAILABLE CASH FOR THE REPURCHASES WHICH WILL BE MADE FROM TIME TO TIME ON THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS THE COMPANY SAID THE REPURCHASED SHARES WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE EMPLOYEE STOCKPURCHASE PLAN AND STOCKOPTION PLAN 9401250135 940125 FRUEHAUF TRAILER COMPLETES SALE SOUTHFIELD MICH FRUEHAUF TRAILER CORP SAID IT COMPLETED THE SALE OF ITS ALUMINUM SHEET OPERATIONS FACTORY IN DECATUR ALA THAT IT JOINTLY OWNS WITH ALUMAX MILL PRODUCTS INC TO J POLLOCK & CO AND SOCIETY VENTURE CAPITAL TERMS WEREN'T DISCLOSED 9401250134 940125 ENTERPRISE FOR AMBITIOUS ENTREPRENEURS INYOURFACE CONSULTING BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL ANTHONY SMITH A PRINCIPAL IN VALENTI SMITH & ASSOCIATES INC OCCASIONALLY SHOUTS AND PACES WILDLY WHEN HE COUNSELS THE NEW YORK CONSULTING FIRM'S CLIENTS MAINLY SMALLBUSINESS OWNERS THE FORMER HARVARD FOOTBALL PLAYER EVEN INSPIRED A CLIENT FRANCISCO SALAS TO TACKLE HIM IN THE OFFICE MR SMITH WAS STRESSING TO HIS CLIENT THAT BUSINESS SUCCESS SOMETIMES REQUIRES YOU TO GET IN SOMEBODY'S FACE AND MAKE YOUR POINT RECALLS MR SALAS THE SIXFOOTONE 200POUND PRESIDENT OF CSR CONSTRUCTION CORP A BUILDER IN NUTLEY NJ MR SMITH'S METHODS MAY SEEM MORE PREGAME PEP TALK THAN MANAGEMENT CONSULTING BUT AMONG SMALL BUSINESS OWNERS LIKE MR SALAS THAT KIND OF COACHING IS BECOMING MORE POPULAR FIRMS LIKE VALENTI SMITH BLEND CONVENTIONAL BUSINESS ADVICE WITH MOTIVATIONAL COUNSELING TO INSPIRE A DESIRE TO WIN BIG RATHER THAN SIMPLY HELPING CLIENTS ACHIEVE INCREMENTAL SALES INCREASES COACHES ENCOURAGE METEORIC GROWTH ACCORDING TO MR SMITH AND HIS PARTNER ANGELO VALENTI THE UNUSUAL METHODS GET RESULTS THE MEN SAY MORE THAN HALF OF THEIR 275 CLIENTS SINCE 1991 WHEN THEY BEGAN COACHING HAVE ACHIEVED THEIR GROWTH GOALS THESE GOALS WHICH CLIENTS ARE REQUIRED TO SET CAN BE AS AMBITIOUS AS A 2000 SALES RISE OVER THE COURSE OF THEIR COACHING CONTRACT VALENTI SMITH'S OWN REVENUE HAS CLIMBED ABOUT 30 ANNUALLY SINCE 1991 TO NEARLY 500000 LAST YEAR THE PARTNERS REPORT THE COMPANY CHARGES SMALLBUSINESS CLIENTS 6000 FOR SIX MONTHS OF COACHING COMPARABLE TO FEES FOR TRADITIONAL CONSULTING A GROWING NUMBER OF SMALLBUSINESS CONSULTANTS PROMOTE THEMSELVES AS COACHES SAYS DAVID LORD EDITOR OF CONSULTANTS NEWS A NEWSLETTER IN FITZWILLIAM NH THE TREND REFLECTS RISING INTEREST IN PERSONALLY ORIENTED MANAGEMENT CONSULTING MR LORD CONTINUES WE'RE SEEING A GREATER RECOGNITION OF HOW PERSONAL HANGUPS GET IN THE WAY OF BUSINESS DECISIONS BUT MR LORD AND OTHER INDUSTRY OBSERVERS URGE SMALLBUSINESS OWNERS TO BE WARY OF PERSONAL BUSINESS CONSULTANTS PARTICULARLY THOSE WHO PROMOTE FARFETCHED PERFORMANCE GAINS I WOULD NEVER BE SO ARROGANT AS TO THINK I COULD INCREASE SALES 1000 SAYS MORTIMER FEINBERG PRESIDENT OF BFS PSYCHOLOGY ASSOCIATES INC A NEW YORK CONSULTING FIRM THERE ARE TOO MANY VARIABLES IN BUSINESS AND PSYCHOLOGY IS JUST ONE OF THEM ALSO MANY ENTREPRENEURS CANNOT MANAGE TORRID GROWTH DR FEINBERG ADDS RAPID EXPANSION OFTEN IS NOT ONLY IMPRUDENT IT'S SUICIDAL HE SAYS MODEST GROWTH IS MUCH BETTER MESSRS SMITH AND VALENTI DISAGREE THEY SAY THAT THROUGH MOTIVATIONAL COUNSELING SMALLBUSINESS OWNERS CAN ACHIEVE A BREAKTHROUGH THIS KIND OF COACHING FREES UP PEOPLE TO TAKE ON BOLDER RISKIER AND FAR MORE PROFITABLE PROJECTS AND ACTIONS SAYS MR SMITH THE 46YEAROLD WHO HAS A MASTER'S DEGREE IN COUNSELING AND HAS ADVISED PRISON INMATES WITH DRUG PROBLEMS BEGAN WORKING WITH MR VALENTI IN 1984 MR VALENTI 45 FORMERLY SOLD EDUCATIONAL AIDS TO SCHOOLS IN 1990 THEY STARTED VALENTI SMITH FRED PIUMELLI PRESIDENT OF GETPAID SOFTWARE IN MONTVALE NJ SAYS A YEAR OF SESSIONS WITH VALENTI SMITH HELPED HIM TO COPE WITH MISSED DEADLINES BY HIS SOFTWARE DEVELOPERS THEIR CHRONIC DESIGN DELAYS HAD FORCED HIM TO POSTPONE MARKETING NEW PRODUCTS SLOWING THE SMALL COMPANY'S SALES HE SAYS NOW MR PIUMELLI SAYS HE WARNS SOFTWARE DEVELOPERS THAT THEY FACE DISMISSAL UNLESS THEY CAN MEET DELIVERY SCHEDULES PROMISED TO CUSTOMERS ONE RESULT AN ANNUAL DOUBLING OF SALES SINCE 1990 WHEN THE SESSIONS WITH VALENTI SMITH ENDED TO AN EXPECTED 2 MILLION THIS YEAR MR PIUMELLI SAYS CSR CONSTRUCTION'S MR SALAS SAYS HE AND HIS PARTNER LEON COHEN ALSO BENEFITED FROM SIX MONTHS OF COACHING LAST YEAR BY VALENTI SMITH MR SALAS SAYS THEIR FIRM WAS ON THE VERGE OF LOSING A BID TO BUILD A 6 MILLION POWER PLANT IN NEW JERSEY THE ELECTRIC UTILITY'S PROJECTREVIEW COMMITTEE HAD RATED CSR'S BID THE BEST TECHNICALLY BUT NOT THE LOWEST MR SALAS RECALLS MR SMITH'S ADVICE FORGET THE COMMITTEE AND MAKE A PITCH TO THE UTILITY'S PRESIDENT MR SALAS SAYS HE DID AND A MONTH LATER GOT THE JOB WITHOUT LOWERING HIS PRICE THE CONTRACT BECAME A MAJOR CONTRIBUTOR TO CSR CONSTRUCTION'S 10 MILLION IN REVENUE LAST YEAR HE NOTES MR SALAS SAYS HE WOULDN'T HAVE THOUGHT OF THE SIMPLE APPROACH ON HIS OWN I WAS TRAINED TO FOLLOW PROTOCOL TO THINK LINEARLY THAT THERE'S A CERTAIN WAY TO DO THINGS THAT GOES FROM STEP A TO STEP B TO STEP C HE ADDS BREAKTHROUGHS DON'T GO FROM A TO B THEY SKIP STEPS MSSRS VALENTI AND SMITH CONCEDE THEIR BREAKTHROUGH CONCEPT SOMETIMES PRODUCES BREAKDOWNS OR MANAGEMENT PROBLEMS RELATED TO THE FIRM'S GROWTH PLAN IN FACT THE BIGGER THE BREAKTHROUGH YOU WANT THE MORE BREAKDOWNS YOU'RE GOING TO HAVE MR VALENTI EXPLAINS THE COMPANIES THAT CAN HANDLE BREAKDOWNS ARE GOING TO GROW QUICKEST AND BE MORE PROFITABLE DANIEL VAN STARRENBURG PRESIDENT OF NATURE'S TREE INC IN BEDFORD HILLS NY SAYS A BREAKDOWN ENABLED HIM TO ACHIEVE A BREAKTHROUGH IN HIS BUSINESS CONFIDENCE HIS COMPANY HIRED VALENTI SMITH IN 1990 THE SESSIONS INSPIRED HIM TO BELIEVE THAT YOU CAN MAKE A COMMITMENT TO SOMETHING AND HAVE NO IDEA HOW YOU'RE GOING TO DO IT HE SAYS THUS MR VAN STARRENBURG SAYS HE ACQUIRED A SMALL NEW JERSEY TREECARE COMPANY IN 1992 EVEN THOUGH HE KNEW HE HAD TOO FEW MANAGERS TO HANDLE THE EXPANSION HE TRANSFERRED HIS VICE PRESIDENT OF FINANCE AND TOP SALESPERSON TO THE NEW OFFICE HE SAYS HE DELEGATED THE FINANCIAL OFFICER'S DUTIES TO HIS CONTROLLER BUT BY EARLY 1993 THE CONTROLLER HAD RESIGNED TO HAVE A BABY AND THE FINANCIAL VICE PRESIDENT LEFT FOR A COMPETITOR MR VAN STARRENBURG FOUND HIMSELF DANGEROUSLY SHORTHANDED HE SAYS ACCOUNTING FELL BEHIND DELAYING A PROJECT AND THE FIRM'S RESPONSE TO RISING COSTS HE FINALLY FILLED THE TWO VACANT POSTS IN AUGUST MR VAN STARRENBURG INSISTS THAT THE TEMPORARY BREAKDOWN IN MANAGEMENT MADE HIM A BETTER BUSINESS OWNER TODAY FOR INSTANCE WE MAKE SURE EVERYBODY IN THE COMPANY IS TRAINING SOMEBODY TO BE THEIR SUCCESSOR HE SAYS SALES RELATED TO THE ACQUISITION HAVE INCREASED 64 SINCE 1992 ACCOUNTING FOR 18 MILLION OF THE COMPANY'S 10 MILLION IN SALES LAST YEAR PERHAPS MOST SIGNIFICANTLY VALENTI SMITH COACHED HIM TO OVERCOME THE NATURAL FEARS YOU FACE AS AN ENTREPRENEUR MR VAN STARRENBURG EXPLAINS HE ADDS YOU CAN GENERATE A MORE PREDICTABLE FUTURE IF YOU DO THINGS CAUTIOUSLY BUT IF YOU HAVE ONLY ONE LIFE TO LIVE WHY NOT PLAY IT ALL OUT 9401250133 940125 CONDUCTUS DELIVERS MICROSCOPE SUNNYVALE CALIF CONDUCTUS INC SAID IT DELIVERED A SCANNING MAGNETIC MICROSCOPE TO NIPPON TELEGRAPH & TELEPHONE CORP'S BASIC RESEARCH LABORATORY IN JAPAN IN A NEWS RELEASE THE COMPANY SAID THE MICROSCOPE ALLOWS USERS TO MAP CURRENTS FLOWING ON OR BENEATH THE SURFACE OF ELECTRONIC DEVICES AND MATERIALS THE COMPANY SAID NTT BOUGHT THE MICROSCOPE TO STUDY WEAK ELECTRIC CURRENTS WITHIN SEMICONDUCTING SAMPLES OTHER POTENTIAL APPLICATIONS INCLUDE THE MAPPING OF MAGNETIC MEDIA AND THE MAPPING OF CURRENTS FLOWING IN INTEGRATED CIRCUITS CONDUCTUS ALSO SAID IT GOT A PATENT ON JAN 18 FOR A METHOD OF PREPARING ELECTRONIC STRUCTURES CONTAINING MULTIPLE SUPERCONDUCTOR LAYERS 9401250132 940125 CANADIAN RETAIL SALES DROP OTTAWA CANADIAN RETAIL SALES DECLINED 02 IN NOVEMBER FROM OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER DECLINE FOLLOWED A 03 INCREASE IN SALES IN OCTOBER 9401250131 940125 TECHNOLOGY & HEALTH WORDPERFECT TO CUT 175 OF WORK FORCE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL WORDPERFECT CORP TIGHTENING ITS BELT IN RESPONSE TO SAGGING PERSONALCOMPUTER SOFTWARE PRICES SAID IT WILL DISMISS 1000 WORKERS OR 175 OF ITS WORLDWIDE FORCE BESTKNOWN FOR ITS FLAGSHIP FAMILY OF WORDPROCESSING PROGRAMS WORDPERFECT HAS FACED STIFFER COMPETITION IN RECENT YEARS AND SEEN PROFITS CONTRACT AND SALES GROWTH SLOW WE NEED A LEANER MORE EFFICIENT ORGANIZATION SAID ADRIAN RIETVELD WORDPERFECT'S CHIEF EXECUTIVE OFFICER THE CLOSELY HELD OREM UTAH COMPANY SAID IT POSTED REVENUE IN EXCESS OF 700 MILLION IN 1993 AN INCREASE OF ABOUT 20 BUT PROFITS WHICH THE COMPANY WOULD NOT DISCLOSE AREN'T KEEPING PACE WITH GROWTH JOHN LEWIS AN EXECUTIVE VICE PRESIDENT AT WORDPERFECT ACKNOWLEDGED THAT THE LAYOFFS ARE PARTLY AIMED AT IMPROVING PROFITS IN ORDER TO BRIGHTEN CHANCES FOR A FUTURE INITIAL PUBLIC STOCK OFFERING WORDPERFECT'S ACTION SEEMS PRUDENT GIVEN THE PRECIPITIOUS COLLAPSE IN SOFTWARE PRICES OVER THE PAST FEW YEARS OBSERVERS SAID PRODUCTS THAT ONCE SOLD FOR 500 ARE NOW SELLING FOR A TENTH OF THAT WHEN BUNDLED IN A SOCALLED SUITE OF PROGRAMS SAID RICHARD SHAFFER EDITOR OF THE COMPUTER LETTER A NEWSLETTER WORDPERFECT WAS ESPECIALLY VULNERABLE TO PRICE CUTS BECAUSE THE COMPANY WAS LOOSELY MANAGED IN THE PAST UNTIL LAST OCTOBER WHEN WORDPERFECT INCORPORATED IN THE STATE OF DELAWARE THE COMPANY WAS ESSENTIALLY A PARTNERSHIP BETWEEN TWO EXEXECUTIVES WHO ARE STILL THE SOLE OWNERS DESPITE DEVELOPING ONE OF THE PREMIER BRANDS IN SOFTWARE DURING THE 1980S THE COMPANY IS ONLY JUST NOW ACQUIRING SOPHISTICATED FINANCIAL PLANNING AS LATELY AS A YEAR AGO SOME EXECUTIVES WORKED WITHOUT BUDGETS AND BUSINESS WAS CONDUCTED ON A CASH BASIS THIS WAS A COMPANY THAT GREW FAST ENOUGH NOT TO WORRY ABOUT EXPENSES SAID MARY CONTI LOFFREDO AN ANALYST AT INTERNATIONAL DATA CORP FRAMINGHAM MASS BUT THOSE DAYS ARE NUMBERED NOW IT HAS TO START RUNNING LIKE A BUSINESS MR LEWIS SAID WORDPERFECT HAS ADOPTED SOPHISTICATED PLANNING AND FINANCIAL PRACTICES OVER THE PAST TWO YEARS THIS IS MUCH HEALTHIER FOR US AS AN ORGANIZATION HE SAID FOR MANY YEARS THE UNDISPUTED LEADER IN THE 13 BILLIONAYEAR WORDPROCESSING MARKET WORDPERFECT LOST THE TOP SPOT TO MICROSOFT CORP LAST YEAR DESPITE SELLING 46 MILLION COPIES OF ITS WORDPROCESSING PROGRAMS ACCORDING TO INTERNATIONAL DATA LAIDOFF EMPLOYEES REGARDLESS OF TENURE WILL RECEIVE 60 DAYS' SEVERANCE MOST WORK IN UTAH 9401250129 940125 BUSINESS BRIEF GOODYEAR SETS 3 RISE IN PRICES FOR ALL LINES OF CAR TRUCK TIRES AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT WILL RAISE PRICES ON ALL REPLACEMENT PASSENGER AND TRUCK TIRE LINES EXCEPT TIRES FOR FARM EQUIPMENT BY 3 EFFECTIVE MARCH 1 THE COMPANY PREVIOUSLY ANNOUNCED A 2 PRICE INCREASE FOR TIRES FOR FARM EQUIPMENT EFFECTIVE JAN 1 GOODYEAR SAID IT IS RAISING PRICES IN ORDER TO KEEP PACE WITH GENERAL INCREASES IN THE COST OF DOING BUSINESS ABOUT TWO WEEKS AGO THE COMPANY'S KELLYSPRINGFIELD TIRES CO SAID IT WOULD INCREASE PRICES 3 EFFECTIVE MARCH 1 ON ALL OF ITS TIRES FOR PASSENGER CARS AND LIGHT AND MEDIUM TRUCKS DAYTON TIRE CO A UNIT OF BRIDGESTONE/FIRESTONE INC ALSO SAID ABOUT TWO WEEKS AGO THAT IT WILL RAISE PRICES BETWEEN 3 AND 5 ON ALL OF ITS DAYTON AND ROAD KING LINES AS WELL AS PRIVATELABEL LINES EFFECTIVE MARCH 1 BRIDGESTONE/FIRESTONE IS A UNIT OF BRIDGESTONE CORP OF JAPAN ASKED WHETHER PRICE INCREASES ARE POSSIBLE ON BRIDGESTONE FIRESTONE OR SEIBERLING TIRES A BRIDGESTONE/FIRESTONE SPOKESMAN SAID WE HAVE NO ANNOUNCEMENT AT THIS TIME A SPOKESMAN FOR GENERAL TIRE INC A UNIT OF GERMANY'S CONTINENTAL AG SAID WE ARE EVALUATING THE SITUATION A SPOKESMAN FOR THE US UNIT OF FRANCEBASED GROUPE MICHELIN SAID WE'RE FINALIZING THE STUDY OF MARKET TRENDS AT THE BEGINNING OF THE YEAR BEFORE DECIDING ON ANY OTHER MOVES LAST WEEK MICHELIN AMERICAS SMALL TIRES SAID IT WILL INCREASE PRICES ON PRIVATEBRAND AND ASSOCIATEBRAND TIRES NOT INCLUDING RIKEN AND KLEBER BY 3 EFFECTIVE FOR SHIPMENTS ON OR AFTER MARCH 1 9401250128 940125 CHESAPEAKE CORP ACQUISITION RICHMOND VA CHESAPEAKE CORP SAID IT COMPLETED THE ACQUISITION BY ITS CHESAPEAKE PACKAGING CO UNIT OF CLOSELY HELD LAWLESS HOLDING CORP TERMS WEREN'T DISCLOSED 9401250127 940125 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 2 15/16 LOW 3 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 59 DAYS 305 60 TO 89 DAYS 308 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 TO 179 DAYS 318 180 TO 259 DAYS 330 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 313 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 255 TWO MONTHS 255 THREE MONTHS 271 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 301 ONE MONTH 307 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 308 120 DAYS 312 150 DAYS 317 180 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 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 684 60 DAYS 691 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 683 60 DAYS 693 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401250126 940125 BROOKLYN UNION GAS UNIT'S PACT NEW YORK BROOKLYN UNION GAS CO SAID ITS GAS ENERGY INC UNIT FORMED A NEW MARKETING PARTNERSHIP TO ENTER THE ELECTRICPOWER TRADING BUSINESS THE GAS UTILITY SAID THE PARTNERSHIP CALLED POWERNET WILL SEEK APPROVAL FROM THE FEDERAL ENERGY REGULATORY COMMISSION TO MARKET AND BROKER POWER AND MAKE WHOLESALE TRANSACTIONS GAS ENERGY SAID THE NEW WHOLESALE ELECTRICITY MARKETING EFFORT COULD INCLUDE EXCESS POWER AVAILABLE FROM ITS EXISTING GASFIRED COGENERATION UNITS THE PARTNERSHIP INCLUDES SEVERAL INDIVIDUALS WHO WORKED WITH BROOKLYN UNION GAS WHEN IT BEGAN MARKETING AND TRADING NATURAL GAS DURING THE PAST DECADE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BROOKLYN UNION SHARES CLOSED AT 27375 DOWN 125 CENTS 9401250125 940125 WHO'S NEWS ADVANTA NAMES MASTERCARD CHIEF HART TO HIGH POST WITH EYE ON CREDIT CARDS BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL MASTERCARD INTERNATIONAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ALEX W PETE HART IS LEAVING THE CREDITCARD ASSOCIATION TO BECOME EXECUTIVE VICE CHAIRMAN OF ADVANTA CORP A FINANCIALSERVICES COMPANY ADVANTA MARKETS A VARIETY OF PRODUCTS INCLUDING MORTGAGE SERVICES AND EQUIPMENT LEASING BUT CREDIT CARDS ARE ITS MAIN BUSINESS THE COMPANY BASED IN HORSHAM PA FOCUSES ON NOFEE MASTERCARD AND VISA GOLD CARDS AND IT RANKS AS ONE OF THE NATION'S 10 LARGEST GOLDCARD ISSUERS DENNIS ALTER ADVANTA'S CHAIRMAN AND CHIEF EXECUTIVE SAID MR HART WILL HELP PLAN THE COMPANY'S FUTURE IN THE RAPIDLY CHANGING CONSUMERFINANCE INDUSTRY WE'RE NOT SURE WHAT DIRECTION ADVANTA WILL TAKE MR ALTER SAID HE LATER PREDICTED THAT MR HART WILL EXPLORE THE POSSIBILITY OF OVERSEAS EXPANSION OR THE INTRODUCTION OF COBRANDED CREDIT CARDS THE CARD INDUSTRY'S FASTESTGROWING PRODUCT LINE COBRANDED CARDS ARE ISSUED BY BANKS BUT BEAR THE NAME OF NONBANK COMPANIES OR ORGANIZATIONS ALTHOUGH MR HART WILL REPORT DIRECTLY TO MR ALTER THE CHAIRMAN EMPHASIZED THAT WE'RE A COMPANY WITH AN ENTREPRENEURIAL APPROACH WITHOUT A RIGID HIERARCHY HE SAID MR HART ACTUALLY WILL FUNCTION AS A PARTNER WITH HIM AND RICHARD A GREENAWALT ADVANTA'S PRESIDENT AND CHIEF OPERATING OFFICER MR GREENAWALT WHO ALSO IS A MASTERCARD INTERNATIONAL BOARD MEMBER HAS KNOWN MR HART FOR SEVERAL YEARS FOR MASTERCARD AN ASSOCIATION OF MORE THAN 29000 FINANCIAL INSTITUTIONS MR HART'S DEPARTURE IS A SETBACK MASTERCARD LOST MARKET SHARE FOR MOST OF THE 1980S AND MR HART IS WIDELY CREDITED FOR A TURNAROUND THAT BEGAN ABOUT THREE YEARS AGO PETE CAUSED THE BOARD TO SET UP A STRATEGY ARTHUR B ZIEGLER CHAIRMAN EMERITUS OF MASTERCARD'S BOARD SAID IN AN INTERVIEW HE BROADENED OUR PRODUCT HONED OUR MARKETING DEVELOPED OUR GLOBAL BUSINESS AND BEST OF ALL HE CREATED A STRONG MANAGEMENT TEAM MR ZIEGLER WHO WILL DIRECT THE SEARCH FOR MR HART'S SUCCESSOR SAID THE BOARD'S EXECUTIVE COMMITTEE WOULD MEET TOMORROW TO BEGIN A WORLDWIDE SEARCH HE SAID THAT BOTH EXTERNAL AND INTERNAL CANDIDATES WOULD BE CONSIDERED MR HART SAID HE WAS DRAWN TO ADVANTA FOR A NUMBER OF REASONS THEY HAVE A REPUTATION FOR BEING ON THE FRONT END OF EVERY TREND IN THE MARKET HE SAID AND THEY ARE IN A GREAT POSITION TO TAKE ADVANTAGE OF NEW SERVICES DRIVEN BY TECHNOLOGICAL IMPROVEMENTS MR HART ALSO SAID THAT MASTERCARD'S IMPROVED COMPETITIVE CONDITION MADE IT A LESS EXCITING PLACE TO WORK SOME OF THE EXCITEMENT OF THE TURNAROUND WAS BEHIND US HE SAID ANOTHER FACTOR WAS THE TRAVEL DEMANDS OF THE MASTERCARD JOB MR HART SAID HE WAS AWAY FROM HOME 135 NIGHTS LAST YEAR IN ADDITION ADVANTA OFFERS ITS SENIOR EXECUTIVES EQUITY OWNERSHIP AND STOCK OPTIONS INCENTIVES THAT MASTERCARD A NONPROFIT ASSOCIATION OWNED BY CARDISSUING BANKS COULD NOT PROVIDE MORE THAN ANYTHING HOWEVER MR HART SAID THE NEW JOB WILL GIVE HIM A CHANCE TO BE MORE DIRECTLY INVOLVED IN THE BUSINESS OF CONSUMER FINANCE I FOUND MYSELF DOING A LOT MORE REFEREEING THAN PLAYING AT MASTERCARD HE SAID I'M LOOKING FORWARD TO GETTING BACK ON THE FIELD 9401250124 940125 REVIEW & OUTLOOK EDITORIAL ASIDES ROSTY'S HEALTH WARNING LOOKS LIKE THE CLINTON HEALTHCARE PROPOSAL HAS PROBLEMS ON DEFENSE LAST WEEK HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI APPEARED BEFORE 35 HEALTH INSURANCE ASSOCIATION OF AMERICA MEMBERS TO WARN THEM TO END THEIR TV ADS IN WHICH A COUPLE NAMED HARRY AND LOUISE EXPRESS MISGIVINGS ABOUT THE CLINTON PLAN YOUR MESSAGES ARE BECOMING THE WILLIE HORTON COMMERCIALS OF THE HEALTHCARE CAMPAIGN ROSTY PONTIFICATED BUT THEN MR ROSTENKOWSKI BECAME ALL SWEETNESS TELLING HIAA MEMBERS IT'S TIME TO MAKE A DEAL BUT MAKING A DEAL IMPLIES A WILLINGNESS TO COMPROMISE IT REQUIRES YOU TO ABANDON THE HIGHPROFILE OUTSIDE GAME YOU'VE BECOME SO GOOD AT AND INSTEAD EMBRACE AN INTENSE BUT PRIVATE INSIDE GAME HMMM SOUNDS LIKE HIAA'S CAMPAIGN IS HAVING AN IMPACT IT'S HARD TO SEE WHY ANYONE INCLUDING THE OPPONENTS OF CLINTONCARE WOULD ABANDON AN OUTSIDE STRATEGY JUST WHEN IT'S MOVING THE BALL 9401250123 940125 TECHNOLOGY & HEALTH DOCTORS AND INSURERS' GROUPS STEP UP ADS LAMBASTING HEALTHCARE OVERHAUL BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DAY BEFORE CONGRESS RECONVENES TO BEGIN WORK ON LEGISLATION OVERHAULING THE US HEALTH SYSTEM GROUPS REPRESENTING DOCTORS AND INSURERS STEPPED UP CAMPAIGNS LAMBASTING GOVERNMENT OR BUREAUCRATIC CONTROLS ON THE HEALTH INDUSTRY THE AMERICAN MEDICAL ASSOCIATION AND THE HEALTH INSURANCE ASSOCIATION OF AMERICA BOTH UNVEILED NEW ADVERTISING CAMPAIGNS BUT AS INDUSTRY GROUPS WERE INTENSIFYING THEIR CRITICISM OF VARIOUS HEALTHREFORM PROPOSALS OTHER ORGANIZATIONS WERE EMBARKING ON PLANS TO PROMOTE A VAST OVERHAUL OF THE HEALTH SYSTEM LAST WEEKEND THE HEALTH CARE REFORM PROJECT A COALITION OF UNIONS CONSUMER GROUPS AND OTHER ORGANIZATIONS BEGAN A RADIO TELEVISION AND PRINT CAMPAIGN PROMOTING SOME OF THE SAME REFORMS PRESIDENT CLINTON HAS PROPOSEDINCLUDING CAPS ON INSURANCE PREMIUMS THERE IS A SERIOUS PROBLEM WITH THE HEALTH SYSTEM REFORM PLANS NOW BEING DEBATED IN CONGRESS THE AD GOES ON TO PROCLAIM THEY DON'T GUARANTEE THAT YOUR PHYSICIAN WILL CONTINUE TO SET THE QUALITY STANDARDS FOR MEDICAL CARE AT THE SAME TIME THE HIAA SAID IT HAS BEGUN AIRING TWO NEW HARRY AND LOUISE COMMERCIALS THE CONTROVERSIAL SERIES OF TELEVISION ADS SHOW AN ORDINARY COUPLE WORRYING ABOUT FEATURES OF THE WHITE HOUSE HEALTH PLAN ONE OF THE NEW COMMERCIALS SHOWS HARRY AND LOUISE IN THEIR LIVING ROOM FRETTING ABOUT HEALTHCARE ALLIANCES THE REGIONAL HEALTH INSURANCE BUYING POOLS THAT WOULD BE SET UP UNDER THE CLINTON PLAN THIS PLAN FORCES US TO BUY OUR INSURANCE THROUGH THESE NEW MANDATORY GOVERNMENT HEALTH ALLIANCES SAYS LOUISE DURING THE 30SECOND SPOT RUN BY TENS OF THOUSANDS OF NEW BUREAUCRATS ADDS HARRY ANOTHER BILLIONDOLLAR BUREAUCRACY LAMENTS LOUISE SUCH CRITICISM ISN'T NEW BUT THE MEDICAL GROUPS' CAMPAIGNS HAVE TAKEN ON A NEW URGENCY BECAUSE DESPITE ALL THE TALK OF CHANGING THE HEALTH SYSTEM OVER THE PAST YEAR THE LEGISLATIVE DEBATE IS ONLY NOW BEGINNING IN EARNEST PRESIDENT CLINTON'S STATE OF THE UNION ADDRESS TONIGHT WILL STRESS HEALTH CARE AFTER THAT PANELS RESPONSIBLE FOR HEALTHCARE LEGISLATION IN THE HOUSE ALMOST IMMEDIATELY WILL BEGIN DRAFTING BILLS TO RESTRUCTURE THE MEDICAL SYSTEM ON CAPITOL HILL REPUBLICAN MEMBERS OF THE JOINT ECONOMIC COMMITTEE RELEASED A REPORT THAT SAID THE WHITE HOUSE'S PROPOSED FINANCING SCHEME FOR EXTENDING HEALTH COVERAGE TO ALL AMERICANS WILL FALL 1 TRILLION SHORT OVER THE FIRST SEVEN YEARS OF THE PLAN THE DEMOCRATIC CHAIRMAN OF THE COMMITTEE REP DAVE OBEY OF WISCONSIN ANGRILY ATTACKED THE REPORT AS A STRAIGHT PARTISAN HATCHET JOB AT A NEWS BRIEFING AMA OFFICIALS SAID THEY WOULDN'T ENDORSE ANY OF THE HALFDOZEN MAJOR HEALTH BILLS INTRODUCED IN CONGRESS BUT THEY SAID THEY WOULD INSIST THAT ANY HEALTHREFORM PROPOSAL HAVE SEVERAL FEATURES MEDICAL COVERAGE FOR ALL AMERICANS GUARANTEED PATIENT CHOICE OF HEALTH PLANS AND DOCTORS ASSURANCES THAT QUALITY WON'T BE SACRIFICED REVISION OF ANTITRUST LAWS TO ALLOW DOCTORS TO NEGOTIATE WITH INSURANCE COMPANIES AND HOSPITAL NETWORKS AND ASSURANCES THAT DOCTORS MAKE THE PRIMARY DECISIONS ABOUT MEDICAL CARE THE OFFICIALS ALSO REPEATED THEIR INTENTION OF SETTING UP A GRASSROOTS LOBBYING CAMPAIGN BY ASKING DOCTORS TO KEEP INFORMATION ON HEALTHCARE REFORM IN THEIR WAITING ROOMS THEY ALSO URGED PHYSICIANS ACROSS THE COUNTRY TO WRITE LETTERS TO THE EDITOR AND GIVE SPEECHES ON HEALTHCARE REFORM TO CIVIC CLUBS HIAA OFFICIALS MET YESTERDAY FOR 1 1/2 HOURS WITH SENIOR ADMINISTRATION OFFICIALS INCLUDING WHITE HOUSE AIDES IRA MAGAZINER GEORGE STEPHANOPOULOS AND HAROLD ICKES THE HIAA HAS BEEN INVOLVED IN SOMETHING OF A PUBLIC FEUD WITH THE WHITE HOUSE EVER SINCE IT BEGAN AIRING THE HARRY AND LOUISE ADS WHICH MANY PEOPLE CRITICIZED AS DISTORTING FEATURES OF THE CLINTON PLAN HIAA PRESIDENT BILL GRADISON CALLED YESTERDAY'S SESSION VERY CONSTRUCTIVE MUCH OF THE CONVERSATION PARTICIPANTS SAID FOCUSED ON THE INSURANCE INDUSTRY'S OPPOSITION TO MANDATORY HEALTH ALLIANCES MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE 9401250122 940125 COTT STRIKES PACT WITH CADBURY TORONTO COTT CORP SAID IT REACHED AN AGREEMENT WITH THE BEVERAGE UNIT OF CADBURY SCHWEPPES PLC TO PROVIDE MARKETING AND PACKAGEDESIGN SERVICES FOR RETAILERBRANDED SOFT DRINKS PRODUCED IN EUROPE BY CADBURY THE FIVEYEAR AGREEMENT IS SUBJECT TO REGULATORY REVIEW IN EUROPE COTT A MISSISSAUGA ONTARIO PRIVATELABEL SOFTDRINK CONCERN CURRENTLY HAS NOMINAL SALES IN EUROPE COTT ALSO GRANTED CADBURY BASED IN THE UK AN OPTION TO ACQUIRE A 49 STAKE IN COTT'S EUROPEAN UNIT THE TERMS OF WHICH WEREN'T DISCLOSED 9401250121 940125 FDIC PROPOSES RULES ON CONVERTING BANKS FROM MUTUAL TO STOCK OWNERSHIP BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP PROPOSED GUIDELINES AIMED AT PREVENTING INSIDERS FROM REAPING EXCESSIVE PROFITS WHEN CERTAIN DEPOSITOROWNED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDEROWNED INSTITUTIONS BUT TWO OF THE THREE FDIC BOARD MEMBERS ALL OF WHOM VOTED FOR THE PROPOSAL SAID IT DOESN'T GO FAR ENOUGH IN PREVENTING ABUSES BY OFFICERS AND DIRECTORS OF SAVINGS BANKS UNDERGOING SUCH A CONVERSION MANY OF THESE INSIDERS HAVE PROFITED HANDSOMELY AT THE EXPENSE OF DEPOSITORS CRITICS SAY AS THEY BECAME LARGE SHAREHOLDERS IN EFFECT TAPPING INTO THE CAPITAL OF THE CONVERTED SAVINGS BANK SUCH CONVERSION WINDFALLS HAVE OFTEN GONE TO OFFICERS AND DIRECTORS WHO HAVE BEEN AT THE INSTITUTIONS FOR ONLY A SHORT TIME THIS HAS RESULTED IN A REAL MALDISTRIBUTION OF CAPITAL SAID BERT ELY A BANKING CONSULTANT THE FDIC PROPOSAL WOULD SET GUIDELINES FOR CONVERSION FROM MUTUAL TO STOCK OWNERSHIP BY STATECHARTERED SAVINGS BANKS THAT ARE UNDER THE AGENCY'S FEDERAL SUPERVISION THERE ARE CURRENTLY NO GUIDELINES FOR SUCH BANKS FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS AND STATECHARTERED S&LS ARE REGULATED BY THE OFFICE OF THRIFT SUPERVISION AMONG POLICIES TO BE OVERSEEN BY FDIC EXAMINERS THE FDIC PROPOSAL SPECIFIES THAT ADEQUATE PROTECTION BE GIVEN TO DEPOSITORS IN PRICING OF THE NEW SHARES APPORTIONING THE STOCK AND TIMELY DISCLOSURE OF RELEVANT INFORMATION TO PROSPECTIVE STOCKHOLDERS IT ALSO SAID THAT ANY SPECIAL DEFERENCE TO INSIDERS BE LIMITED AVOIDING STOCK APPORTIONING THAT LEADS TO INDIVIDUAL WINDFALL GAINS FURTHER THE FDIC COULD SEEK CHANGES IN THE CONVERSION IF THE TRANSACTION RAISES CONCERNS ABOUT THE INSTITUTION'S SOUNDNESS OR LEGAL LIABILITY BUT EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY AND ONE OF THE THREE FDIC BOARD MEMBERS SAID THE STAFFWRITTEN PROPOSAL ADOPTED BY THE BOARD FAILS TO ADDRESS THE ABUSES THAT ARE NOW OCCURRING AND WOULD LET INSIDERS CONTINUE UNJUSTLY APPROPRIATING THE VALUE OF MUTUAL SAVINGS BANKS THAT CONVERT TO STOCK INSTITUTIONS HE SAID THE PROPOSAL TOO NARROWLY DEFINES THE FDIC'S ROLE DEALING ONLY WITH AN INSTITUTION'S SAFETY AND SOUNDNESS WHILE IGNORING DEPOSITOR INTERESTS IF A FINAL POLICY CAN'T BE SHAPED TO PREVENT ABUSES LEGISLATION SHOULD BE DEVELOPED JONATHAN FIECHTER THE ACTING OTS DIRECTOR AND MR LUDWIG BOTH SAID FDIC ATTORNEYS VOICED DOUBTS THAT THE AGENCY HAS AUTHORITY TO REGULATE CONVERSIONS SUCH AS THAT HELD BY THE OTS THE OTS LIMITS THE AMOUNT OF STOCK THAT OFFICERS AND DIRECTORS CAN BUY IN A CONVERSION PUTTING THEM THIRD BEHIND EMPLOYEE STOCK OWNERSHIP PLANS AND DEPOSITORS A BILL OFFERED TWO MONTHS AGO BY HOUSE BANKING COMMITTEE LEADERS WOULD REQUIRE THAT FDICSUPERVISED STATECHARTERED SAVINGS BANKS ADHERE TO THE SAME CONVERSION RULES AS OTSREGULATED INSTITUTIONS 9401250119 940125 MEXICAN STOCKS DRAW INVESTORS FOR LONG TERM BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOREIGN INVESTORS IN MEXICO ARE SHOWING A PREFERENCE FOR LONGERTERM INVESTMENTS HERE A TREND THAT COULD PROVIDE AN IMPORTANT BOOST TO THE STOCK MARKET THIS YEAR LAST YEAR IT SEEMED AS IF INVESTORS IN MEXICO COULD DO NO WRONG THE MEXICAN BOLSA'S IPC INDEX SOARED 499 IN LOCALCURRENCY TERMS LAST YEAR WITH SEVERAL STOCKS UP 100 OR MORE EVEN INVESTORS IN SHORTTERM TREASURY BILLS DID WELL IN 1993 TAKING ADVANTAGE OF THE COUNTRY'S VERY HIGH INTEREST RATES FOR 1994 STRATEGISTS ARE EXPECTING AT LEAST A 20 RISE IN MEXICO'S IPC INDEX YESTERDAY THE INDEX ROSE 1053 POINTS TO A NEW HIGH OF 269371 YEARTODATE THE IPC IS UP 35 CHANGES IN MEXICAN FISCAL AND MONETARY POLICY AND IN THE TYPE OF INVESTOR APPROACHING MEXICO TODAY ARE LIKELY TO MAKE STOCKS AND LONGTERM MEXICAN BONDS THE FAVORED INVESTMENTS OF THE YEAR PROVIDING STRONG SUPPORT FOR BOTH MARKETS WHILE DEMAND FOR SHORTTERM GOVERNMENT SECURITIES FADES THE NEW APPETITE FOR LONGTERM MEXICAN ASSETS IS FUELED BY SEVERAL FACTORS THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT IS EXPECTED TO PROVIDE A BASE OF ECONOMIC GROWTH FOR MEXICO DURING THE NEXT SEVERAL YEARS ALSO YIELDS ON MEXICAN TREASURY BILLS KNOWN AS CETES CONTINUE TO FALL TO THEIR LOWEST LEVELS EVER PUSHING MANY SHORTTERMYIELD PLAYERS OUT OF THE MEXICAN MARKET JP MORGAN FOR EXAMPLE EXPECTS AN AVERAGE RETURN ON 28DAY CETES OF 95 IN DOLLAR TERMS THIS YEAR DOWN FROM 135 LAST YEAR BUT THIS SAME DECLINE IN INTEREST RATES SHOULD BOOST CORPORATE PROFITS FOR MANY MEXICAN COMPANIES AND HELP STIMULATE CONSUMPTION AND GROWTH HERE THE CETES GAME IS OVER SAYS CARRIE SCHLOSS COMANAGER OF THE KEMPER INTERNATIONAL FUND INVESTORS ARE ROLLING OUT OF THE CETES MARKET INTO THE STOCK MARKET ADDS JOYCE CHANG DIRECTOR AT SALOMON BROTHERS PEOPLE ARE NOT LOOKING AT MEXICO NOW AS A 28DAY CETES PLAY YOU HAVE A DIFFERENT INVESTOR BASE GOING INTO THE MARKET A BASE THAT HAS A LONGERTERM PERSPECTIVE TAKE FIDELITY MANAGEMENT & RESEARCH CO THE GIANT BOSTON MONEY MANAGER AS AN EXAMPLE LINCOLN ANDERSON THE FIRM'S DIRECTOR OF ECONOMIC ANALYSIS SAYS FIDELITY HAS BEEN SHIFTING TO PURCHASES OF STOCKS AND LONGERTERM MEXICAN BONDS WE WERE A BIG CETES HOLDER MR ANDERSON SAYS BUT NOW WE ARE MOVING INTO EQUITIES AND INTO LONGERTERM DEBT MARKETS HE ADDS WE HAVE REALLY BEEFED UP OUR ANALYST COVERAGE OF MEXICO AMONG THE SIGNS THAT THE APPETITE FOR MEXICAN STOCKS ARE RISING IN DECEMBER ALONE MEXICAN COMPANIES RAISED 183 BILLION IN NEW CAPITAL THROUGH OFFERINGS OF AMERICAN DEPOSITARY RECEIPTS ACCORDING TO THE MAGAZINE LATINFINANCE MORE THAN THEY SOLD IN THE PREVIOUS 11 MONTHS FOREIGN OWNERSHIP OF MEXICAN STOCKS AT YEAR END ROSE TO 568 BILLION ABOUT 28 OF THE MARKET'S VALUE FROM 285 BILLION OR 21 OF THE MARKET'S VALUE AT THE START OF 1993 MORE OFFERINGS ARE ON THE WAY INVESTMENT BANKERS HERE SAY THE FOLLOWING MEXICAN COMPANIES ARE CONSIDERING US LISTINGS FURNITURE RETAILER SALINAS Y ROCHA GRUPO FINANCIERO BANCOMER HOLDING COMPANY FOR MEXICO'S SECONDLARGEST BANK EL PALACIO DE HIERRO A SPECIALTY RETAILER COMERCIAL MEXICANA A SUPERMARKET CHAIN EMPRESAS LA MODERNA A TOBACCO COMPANY AND IUSACELL THE CELLULARPHONE COMPANY BUSINESS AND THE GOVERNMENT TAKE GREAT PAINS TO MONITOR FOREIGNINVESTMENT FLOWS INTO MEXICO FOREIGN INFLOWS ARE CRITICAL BECAUSE THE ECONOMY IS DEEPLY DEPENDENT ON THEM MEXICO DOESN'T HAVE ENOUGH DOMESTIC SAVINGS OR EXPORT EARNINGS TO FINANCE WHAT IT SPENDS ON FOREIGN GOODS CONSEQUENTLY THE COUNTRY HAS TO BORROW FOREIGN SAVINGS BY ATTRACTING INVESTORS TO MARKETS OR INVESTMENTS HERE WITH THE NORTH AMERICAN FREE TRADE AGREEMENT IN PLACE THE DEMAND FOR FOREIGN GOODS FROM COMPUTERS TO FACTORY EQUIPMENT IS LIKELY TO INCREASE JP MORGAN ECONOMIST JAMES NASH FOR EXAMPLE PREDICTS THAT MEXICO'S CURRENT ACCOUNT DEFICIT WHICH INCLUDES TRADE WILL RISE 15 BILLION THIS YEAR TO 229 BILLION OR 6 OF GROSS DOMESTIC PRODUCT TO COVER THAT INCREASE JP MORGAN PREDICTS MEXICO WILL ATTRACT AN ADDITIONAL 14 BILLION INTO ITS CAPITAL ACCOUNT THIS YEAR THE CATEGORY THAT MEASURES AMONG OTHER THINGS THE INFLOW OF FOREIGN SAVINGS MEXICO'S CAPITAL ACCOUNT IS EXPECTED TO REACH 235 BILLION THIS YEAR CERTAINLY CETES WILL CONTINUE TO PULL IN SOME FOREIGN INVESTMENT BUT MR NASH BELIEVES INVESTORS WILL BEGIN TO FAVOR LONGERTERM INVESTMENTS SINCE 1992 MEXICO'S RELIANCE ON SHORTTERM INFLOWS HAS INCREASED SUBSTANTIALLY HE SAYS BUT NOW THE COMPOSITION OF CAPITAL FLOW WILL BE HOPEFULLY MORE BIASED TOWARD LONGTERM ASSETS MEXICAN INVESTORS TOO ARE SHOWING A PREFERENCE FOR LONGERTERM ASSETS SAYS ARTURO ACEVEDO ACEVES DIRECTOR OF RESEARCH AT MEXICAN BROKERAGE FIRM VECTOR THERE IS A DOMESTIC MARKET FOR 20YEAR PAPER NOW HE SAYS THERE ARE TWO CLEAR RISKS TO INVESTING IN MEXICAN STOCKS THIS YEAR HOWEVER FIRST MEXICAN INFLATION COULD ACCELERATE IN RESPONSE TO THE UPRISING IN CHIAPAS THE MEXICAN GOVERNMENT WILL SPEND 539 OF THE FEDERAL BUDGET ON SOCIAL PROGRAMS MORE THAN ANY PAST ADMINISTRATION SECONDLY NOT ALL MEXICAN COMPANIES WILL FARE WELL UNDER NAFTA MS SCHLOSS THE COMANAGER OF THE KEMPER INTERNATIONAL FUND WHICH POSTED A TOTAL RETURN OF 354 LAST YEAR SAYS SEVERAL MEXICAN COMPANIES OFFER EARNINGS GROWTH POTENTIAL IN 1994 SHE LIKES GRUPO CARSO THE CONGLOMERATE WITH INTERESTS IN TELEFONOS DE MEXICO AND IN RETAILING THROUGH ITS SANBORN BROTHERS UNIT CIGARETTES MINING AUTOPARTS AND CONSTRUCTION STOCKS ARE HIGH ON HER LIST AMONG OTHER HOLDINGS SHE HAS STAKES IN THE FOOD CONCERN GRUPO HERDEZ THE CONSTRUCTION COMPANY CEMEX TILE MAKER INTERCERAMIC AND CONTRACTOR BUFETE INDUSTRIAL AMONG FINANCIAL STOCKS MS SCHLOSS OWNS SHARES IN MEXICO'S LARGEST BANKHOLDING COMPANY BANACCI SHE ALSO OWNS GRUPO FINANCIERO INBURSA THE BROKERAGE AND NEWLY FORMED BANKING UNIT CONTROLLED BY MEXICAN BILLIONAIRE CARLOS SLIM I THINK THEY HAVE A NICHE AND I THINK THEY WILL HAVE VERY FAST GROWTH SHE SAYS SHE ALSO OWNS GRUPO FINANCIERO SERFIN THE THIRDLARGEST MEXICAN BANKING COMPANY AS A TURNAROUND STORY MS SCHLOSS SOLD BOTTLERS SUCH AS GRUPO GEMEX PANAMCO AND COCACOLA FEMSA BECAUSE THEY WERE TOO EXPENSIVE BUT SHE STILL HAS A STAKE IN COCACOLA FEMSA'S PARENT KNOWN SIMPLY AS FEMSA WHICH ALSO HAS A LARGE BREWING BUSINESS I THINK YOU WILL SEE FAIRLY STRONG ECONOMIC GROWTH IN 1994 AND THAT WILL TRANSLATE INTO FAIRLY STRONG EARNINGS GROWTH SHE SAYS I WOULD EXPECT A TOTAL RETURN OF AT LEAST 25 IN 1994 IN MEXICAN STOCKS 9401250118 940125 WHO'S NEWS FIRST DATA CORP FIRST DATA CORP HACKENSACK NJ ROGER PEIRCE WAS NAMED PRESIDENT OF THE NEW ELECTRONIC FUNDS SERVICES UNIT OF THIS INFORMATIONPROCESSING COMPANY THE UNIT COMBINES THE POINTOFSALE OIL AND GAS DEBIT AND PRIVATE LABEL TRANSACTION CARD BUSINESSES MR PEIRCE 52 WAS EXECUTIVE VICE PRESIDENT AT CREDIT CARD ASSOCIATION VISA INTERNATIONAL RESPONSIBLE FOR WORLDWIDE DELIVERY SYSTEMS IN SAN FRANCISCO VISA SAID WILLIAM L CHENEVICH 50 SUCCEEDS MR PEIRCE MR CHENEVICH WHO JOINED VISA IN OCTOBER WAS SUPERVISING DEVELOPMENT OF NEW CREDIT DEBIT AND RISK CONTROL SERVICES AT THE VISANET STRATEGIC UNIT 9401250117 940125 FINANCING BUSINESS AMPHENOL CORP AMPHENOL CORP A WALLINGFORD CONN MAKER OF CONNECTORS AND CABLES SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF CLASS A COMMON STOCK INCLUDING ABOUT FOUR MILLION NEW SHARES AND ABOUT 37 MILLION SHARES BY ABOUT A DOZEN TOP MANAGERS AMPHENOL SAID IT WILL USE ITS PROCEEDS TO PREPAY DEBT THE EXECUTIVES ARE ALL SELLING LESS THAN 10 OF THEIR HOLDINGS THE COMPANY SAID IN NEW YORK STOCK EXCHANGE TRADING AMPHENOL SHARES FELL 1125 A SHARE OR 66 TO CLOSE AT 16 9401250116 940124 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 9401250115 940125 WHO'S NEWS DAINIPPON INK & CHEMICALS INC DAINIPPON INK & CHEMICALS INC TOKYO THIS GRAPHIC ARTS AND SPECIALTYCHEMICAL CONCERN'S POLYCHROME CORP UNIT NAMED THOMAS BITTNER CHIEF EXECUTIVE OFFICER MR BITTNER 43 YEARS OLD SUCCEEDS MELVIN A ETTINGER 52 WHO LEFT THE COMPANY TO BECOME PRESIDENT OF VERDEPRINT TECHNOLOGIES A UNIT OF XEROX CORP MR BITTNER REMAINS PRESIDENT OF POLYCHROME 9401250114 940125 SHORTINTEREST REPORTING IS DELAYED UNTIL FRIDAY WASHINGTON SHORT INTEREST IN NASDAQ STOCKS SCHEDULED TO HAVE BEEN REPORTED AT THE CLOSE OF TRADING YESTERDAY WILL BE RELEASED AT THE CLOSE OF TRADING FRIDAY BECAUSE OF WEATHERRELATED DELAYS ACCORDING TO THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE SHORTINTEREST TABLE FOR NASDAQ ISSUES WILL APPEAR IN MONDAY'S EDITION OF THE WALL STREET JOURNAL SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL THE REPORTING OF SHORTINTEREST DATA HAS BEEN DELAYED UNTIL THE MARKETCLOSE FRIDAY BECAUSE LAST WEEK'S ADVERSE WEATHER CONDITIONS MEANT THAT NASD STAFF IN ROCKVILLE MD COULDN'T GET IN TO ENTER THE FIGURES SAID AN NASD SPOKESMAN A NUMBER OF NASDAQLISTED FIRMS MAY ALSO HAVE BEEN LATE IN REPORTING SHORTINTEREST DATA SO WE DECIDED TO GIVE THESE COMPANIES A LITTLE EXTRA TIME TO PROVIDE NASD WITH THEIR RESPECTIVE SHORTINTEREST ENTRIES HE SAID 9401250113 940125 BOEING EARNINGS FELL 15 IN 4TH PERIOD SOME ANALYSTS LOWER ESTIMATES FOR 1994 BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO REPORTED A 15 DROP IN FOURTHQUARTER NET INCOME A SMALLER DECLINE THAN MOST SECURITIES ANALYSTS HAD EXPECTED STILL SOME ANALYSTS LOWERED THEIR ESTIMATES FOR BOEING'S 1994 EARNINGS BECAUSE THE COMPANY PLANS TO SPEND MORE ON NEWAIRPLANE DEVELOPMENT THE SEATTLE AEROSPACE CONCERN SAID IT EARNED 304 MILLION OR 89 CENTS A SHARE DOWN FROM 357 MILLION OR 105 A SHARE A YEAR EARLIER SALES FOR THE QUARTER FELL 25 TO 566 BILLION FROM 750 BILLION FOR ALL 1993 EARNINGS DROPPED 20 TO 124 BILLION OR 366 A SHARE FROM 155 BILLION OR 457 A SHARE SALES SLID 16 TO 2544 BILLION FROM 3018 BILLION THE COMPANY ALSO PROJECTED THAT 1994 SALES WILL FALL EVEN MORE SHARPLY BY AT LEAST 175 TO BETWEEN 20 BILLION AND 21 BILLION BOEING SHARES CLOSED AT 4450 DOWN 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TOUGH TIMES IN THE AIRLINE INDUSTRY HAVE HURT BOEING'S ORDERS FOR NEW COMMERCIAL AIRPLANES AND FORCED SHARP PRODUCTIONRATE CUTS AND HEAVY LAYOFFS DESPITE THE CUTBACKS THE COMPANY SEEMS TO BE HOLDING THE LINE ON COSTS AND GENERALLY MAINTAINING PROFIT MARGINS ANALYSTS WERE ENCOURAGED BY THOSE SIGNALS AND SURPRISED BY THE FOURTHQUARTER EARNINGS THAT WERE ABOUT SIX CENTS A SHARE HIGHER THAN THEIR CONCENSUS ESTIMATE THE PERFORMANCE WAS ATTRIBUTED TO LOWERTHANEXPECTED OUTLAYS FOR RESEARCH AND DEVELOPMENT FOR NEW MODELS OF VARIATIONS OF AIRLINERS HOWEVER A BELIEF THAT BOEING WILL RETURN TO HIGHER LEVELS OF DEVELOPMENT SPENDING THIS YEAR PROMPTED SOME ANALYSTS TO REDUCE THEIR 1994 EARNINGS PROJECTIONS BOEING IS LIKELY TO SPEND 175 BILLION THIS YEAR ON THREE PLANES AN ADVANCED 350SEAT 777 AIRLINER A MORE EFFICIENT SMALL TWINJET CALLED THE 737700 AND A FREIGHTER VARIANT OF ITS WIDEBODY 767 PLANE ACCORDING TO WOLFGANG DEMISCH OF BT SECURITIES IN NEW YORK THERE IS NO SHORTAGE OF THINGS TO SPEND MONEY ON MR DEMISCH SAID HE LOWERED HIS 1994 EARNINGS ESTIMATE TO 210 A SHARE FROM 240 A SHARE HE ALSO REDUCED HIS 1995 ESTIMATE TO 215 A SHARE FROM 220 BUT ANALYSTS ALSO SAID THEY WERE ENCOURAGED BY THE STRENGTH OF BOEING'S COMMERCIAL AIRLINER PROFIT MARGINS WHICH DESPITE THE PRODUCTION CUTS DECLINED ONLY TO 8 OF REVENUE IN 1993 FROM 82 OF REVENUE IN 1992 AND THEY ARE OPTIMISTIC THAT BOEING'S INVESTMENT NOW WILL PAY OFF WHEN THE AIRLINER MARKET BOUNCES BACK BOEING SAID THE 1993 EARNINGS DECLINE WAS MAINLY DUE TO HEAVY DEVELOPMENT EXPENSES AND TO REDUCED COMMERCIAL AIRCRAFT SALES BOEING DELIVERED 330 COMMERCIAL JET TRANSPORTS LAST YEAR COMPARED WITH 441 FOR 1992 THOSE FACTORS WERE PARTLY OFFSET BY INCREASED REVENUE FROM CUSTOMER FINANCING WHICH HAS RISEN RAPIDLY AS AIRLINES HAVE NEEDED MORE HELP PAYING FOR AIRCRAFT CUSTOMERFINANCING COMMITMENTS AT BOEING TOTALED 32 BILLION IN THE FOURTHQUARTER DOWN FROM 35 BILLION IN THE THIRDQUARTER BUT STILL FAR HIGHER THAN LAST YEAR'S AMOUNTS BOEING OFFICIALS HAVE TOLD ANALYSTS THAT FINANCING TOTALS WILL RISE IN 1994 BEFORE DROPPING BACK BY THE END OF THE YEAR TO 1993 YEAREND LEVELS WHILE SOME ANALYSTS WERE DISAPPOINTED WITH PROFIT MARGINS AT BOEING'S DEFENSE AND SPACE UNIT BOEING CHAIRMAN FRANK SHRONTZ SAID IN THE COMPANY'S EARNINGS REPORT THAT THE 1993 IMPROVEMENT REFLECTED BOTH STRONG PROGRAM PERFORMANCE AND EXCELLENT COST MANAGEMENT 9401250112 940125 WHO'S NEWS COMPAQ COMPUTER CORP COMPAQ COMPUTER CORP HOUSTON MICHAEL LAMBERT 47 YEARS OLD WAS NAMED VICE PRESIDENT OF MARKETING OF THIS PERSONAL COMPUTER MAKER'S SYSTEMS DIVISION HE SUCCEEDS KEVIN BOHREN 36 WHO LAST YEAR WAS NAMED VICE PRESIDENT OF DESKTOP MARKETING MR LAMBERT WAS PREVIOUSLY GENERAL MANAGER OF THE LARGECOMPUTER PRODUCTS DIVISION OF NCR CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO 9401250111 940125 PERSONAL TRADING IS COMMON AMONG FUND MANAGERS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THE ETHICS OF PERSONAL STOCK TRADES STIR UP A RUCKUS IN THE MUTUALFUND INDUSTRY ONE THING IS BECOMING CLEAR PERSONAL TRADING BY FUND MANAGERS IS WIDESPREAD AND SOMETIMES FEVERISH AFTER INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR HIS ALLEGED FAILURE TO REPORT 10 OR 20 PERSONAL TRADES THIS NEWSPAPER ASKED SOME LEADING MUTUALFUND COMPANIES ABOUT THE LEVEL OF PERSONAL TRADING AT THEIR FIRMS THE ANSWERS BALTIMORE'S T ROWE PRICE ASSOCIATES SAYS ITS MOSTACTIVE FUND MANAGER HAD 21 PERSONAL STOCK TRADES DURING THE PAST 12 MONTHS IN NEW YORK SCUDDER STEVENS & CLARK SAYS THAT SOME OF ITS PORTFOLIO MANAGERS DO TWO OR THREE TRADES A MONTH MORE THAN HALF OF PIONEER GROUP'S PORTFOLIO MANAGERS HAD NO TRADES IN 1993 BUT ONE MANAGER NOTCHED UP 33 TRANSACTIONS ACCORDING TO A SPOKESWOMAN FOR THE BOSTONBASED COMPANY THE MOST ACTIVE INVESTOR IN KEYSTONE GROUP'S INVESTMENT DEPARTMENT IN BOSTON DID SIX PERSONAL TRADES IN THE LAST QUARTER OF 1993 PUTNAM INVESTMENTS IN BOSTON LOOKED AT A SAMPLING OF ITS MUTUALFUND MANAGERS THE MOST PROLIFIC TRADER HAD 48 BUYS AND SELLS IN 1993 WITH AN AVERAGE VALUE OF 2500 THE HEAVIEST TRADER AT DENVERBASED INVESCO CLOCKED SOME 30 TRANSACTIONS DURING THE PAST YEAR BUT THE BUSIEST TRADERS ARE BELIEVED TO BE AT FIDELITY INVESTMENTS THE COUNTRY'S LARGEST MUTUALFUND GROUP SOME MANAGERS AT THE BOSTON FUND GIANT RACK UP AS MANY AS 200 PERSONAL TRADES IN A YEAR ACCORDING TO KNOWLEDGEABLE PEOPLE FIDELITY DECLINED TO COMMENT ON THAT FIGURE FORMER FIDELITY EMPLOYEES SAY THE FIRM'S TRADITION OF PERSONAL TRADING IS CLOSELY ASSOCIATED WITH CELEBRATED FUND MANAGER PETER LYNCH WHO RAN FIDELITY MAGELLAN FUND FOR 13 HUGELY SUCCESSFUL YEARS BEFORE STEPPING DOWN IN 1990 HE NOW WORKS PARTTIME FOR THE FIRM MR LYNCH TOOK OUT A PERSONAL LOAN IN THE 1970S SO HE WOULD HAVE MORE MONEY TO TRADE WITH IN HIS PERSONAL ACCOUNT ACCORDING TO A FIDELITY SPOKESWOMAN MR LYNCH ALSO USED TO BUY STOCKS ON MARGIN WHICH INVOLVES BORROWING PART OF A STOCK'S PURCHASE PRICE FROM A BROKERAGE FIRM EVEN PRIOR TO PETER IT WAS PART OF THE CULTURE TO SAY WE'RE LOOKING FOR PEOPLE WHO TRADE FOR THEIR OWN ACCOUNT' SAYS WILLIAM HAYES A FIDELITY MANAGING DIRECTOR IF MANAGERS HAVE MONEY AT RISK THEY MORE FULLY APPRECIATE WHAT IT'S LIKE FOR SHAREHOLDERS TO HAVE MONEY AT RISK MR HAYES SAYS FIDELITY LOOKS TO HIRE MANAGERS WHO LOVE THE MARKET IT'S A NATURAL OUTGROWTH THAT THEY'LL OCCASIONALLY WANT TO TRADE FOR THEMSELVES IN THE LONG RUN THAT MAKES THEM BETTER MANAGERS AND HELPS THE SHAREHOLDERS AND THAT SHOWS IN THE FUNDS' RESULTS NOT ALL FUND GROUPS ENCOURAGE THEIR FUND MANAGERS TO TRADE MANY FEEL HOWEVER THEY HAVE NO CHOICE BUT TO ALLOW MANAGERS TO TRADE ON THEIR OWN A PERFECTLY LEGAL PRACTICE WHEN DONE WITHIN FEDERAL RULES BECAUSE BANNING PERSONAL TRADES MIGHT PROMPT TALENTED MONEY MANAGERS TO QUIT ANYBODY WHO'S ANY GOOD INVESTS FOR THEIR OWN ACCOUNT SAYS DONNA CALDER A FORMER OPPENHEIMER MANAGEMENT FUND MANAGER WHO NOW RUNS A NEW YORKBASED HEDGE FUND IT'S ONE OF THE PERKS OF THE JOB AND A GREAT ONE BUT PERSONAL TRADING ALSO RAISES A SLEW OF THORNY ISSUES IT IS ILLEGAL FOR MANAGERS TO FRONTRUN BY BUYING OR SELLING A PARTICULAR STOCK AHEAD OF THEIR FIRM'S MUTUAL FUNDS FUND COMPANIES HAVE STRICT RULES TO GUARD AGAINST FRONTRUNNING AS A RESULT FUND COMPANY EXECUTIVES AND FUND MANAGERS SAY THEY ARE MORE CONCERNED ABOUT OTHER ABUSES THAT ARE HARDER TO DETECT IS A MANAGER FOR INSTANCE SPENDING TOO MUCH TIME WORKING ON HIS PERSONAL ACCOUNT IS HE CHOOSING NOT TO BUY A STOCK FOR HIS FUND SO THAT HE CAN BUY IT INSTEAD FOR HIS PERSONAL ACCOUNT IS A MANAGER GETTING A SPECIAL FAVOR FROM A STOCK PROMOTER SUCH AS PARTICIPATION IN A PRIVATE PLACEMENT OR AN INITIAL PUBLIC OFFERING AS AN INDUCEMENT TO BUY OTHER DEALS FOR HIS FUND ANY TIME A MANAGER TRADES FOR HIS OWN ACCOUNT THERE'S THE POTENTIAL FOR A CONFLICT OF INTEREST SAYS WILLIAM KEITHLER WHO LEFT INVESCO TO BECOME MANAGER OF BERGER SMALL COMPANY GROWTH FUND I DON'T DO A LOT OF TRADING FOR MYSELF AND WHEN I DO I BUY SOMETHING I DEEM TOO SPECULATIVE FOR MY OWN FUND MOST OF THE TIME IT DOESN'T WORK OUT THE STOCK CERTIFICATES END UP AS WALLPAPER MR KEITHLER NOTES THAT HE CAN NO LONGER TRADE FOR HIS OWN ACCOUNT HIS NEW EMPLOYER BERGER ASSOCIATES RECENTLY BARRED PORTFOLIO MANAGERS FROM OWNING INDIVIDUAL STOCKS IN THEIR PERSONAL ACCOUNTS FOLLOWING THE FIRING OF INVESCO'S MR KAWESKE THERE'S BEEN NO RUSH TO FOLLOW BERGER'S MOVE THOUGH MANY FIRMS HAVE SAID THEY ARE REVIEWING THEIR POLICIES RICHARD FONTAINE MANAGER OF FONTAINE CAPITAL APPRECIATION FUND SAYS PERSONAL TRADING IS LESS PREVALENT NOW THAN IT WAS IN THE EARLY 1980S WHEN HE ENTERED THE MONEYMANAGEMENT BUSINESS BACK THEN THIS WASN'T A HIGHPAYING BUSINESS SAYS MR FONTAINE THERE WERE GUYS WHO TOLD YOU THEY ONLY MADE 100000 IN SALARY BUT THEY MADE ANOTHER 100000 IN THEIR PERSONAL ACCOUNT BUT THESE DAYS EVERYBODY'S MAKING A LOT OF MONEY FROM MANAGING FUNDS SO PERSONAL TRADING IS LESS IMPORTANT SENIOR FUND MANAGERS NOW MAKE AN AVERAGE 170000 ACCORDING TO NEW YORK'S BUCK CONSULTANTS BUT TOTAL COMPENSATION FOR TOP MANAGERS AT A FEW FUNDS CAN RUN TO 2 MILLION AND MORE SAYS RICHARD LANNAMANN A MANAGING DIRECTOR WITH EXECUTIVE RECRUITERS RUSSELL REYNOLDS ASSOCIATES IF MONEY ISN'T THE ISSUE WHY DO MANAGERS TRADE FOR THEIR OWN ACCOUNTS RATHER THAN SIMPLY INVESTING THEIR MONEY IN THEIR OWN AND OTHER MUTUAL FUNDS FOR THE BEST MANAGERS INVESTING IS NOT ONLY THEIR PROFESSION IT'S THEIR HOBBY SAYS STEVEN SOMES A FUND MANAGER WITH BOSTON'S STATE STREET RESEARCH & MANAGEMENT THEY LOVE THE MARKETS THAT LOVE IS WHAT SEPARATES THE REALLY GOOD MANAGERS FROM THE REST MR SOMES SAYS HE BUYS 10 TO 20 STOCKS A YEAR IN HIS PERSONAL ACCOUNT MANAGERS INSIST PERSONAL TRADING DOESN'T DETRACT FROM EFFORTS THEY PUT INTO MANAGING THEIR FUNDS THERE'S THIS IDEA THAT FUND MANGERS SPEND HALF OR THREEQUARTERS OF THEIR TIME INVESTING FOR THEIR OWN ACCOUNT SAYS MS CALDER THE FORMER MANAGER WITH OPPENHEIMER MANAGEMENT WHICH ISN'T RELATED TO OPPENHEIMER & CO THAT'S NOT THE CASE I DIDN'T SPEND A LOT OF TIME ON MY OWN ACCOUNT SHE SAYS THAT IN ANY ONE YEAR AS A FUND MANAGER SHE NEVER BOUGHT MORE THAN 12 TO 15 STOCKS FOR HER PERSONAL ACCOUNT SHOULD FUND INVESTORS WORRY ABOUT THOSE PERSONAL TRADES I DON'T THINK IT HAS ANYTHING TO DO WITH THE MUTUALFUND INVESTOR MS CALDER RESPONDS MUTUALFUND INVESTORS ARE THERE TO MAKE A POSITIVE RETURN ON THEIR INVESTMENT AND THAT'S ALL THEY SHOULD BE CONCERNED ABOUT 9401250110 940125 SOUTHLAND TO TERMINATE 8 PRICEGOUGING 7ELEVENS DALLAS CITING APPARENT PRICEGOUGING IN THE WAKE OF LAST WEEK'S EARTHQUAKE THE SOUTHLAND CORP SAID IT NOTIFIED EIGHT 7ELEVEN CONVENIENCE STORE FRANCHISEES IN THE LOS ANGELES AREA THAT IT WILL TERMINATE THEIR CONTRACTS DALLASBASED SOUTHLAND SAID CALLS FROM CUSTOMERS COMPLAINING ABOUT PROFITEERING LED THE COMPANY TO SEND ITS OWN EMPLOYEES OUT TO SHOP AT ABOUT 100 OF ITS FRANCHISE CONVENIENCE STORES THE COMPANY DISCOVERED EIGHT STORES MOST OF THEM IN THE SAN FERNANDO VALLEY THAT HAD SUBSTANTIALLY RAISED PRICES IN SOME CASES DOUBLING THEM ON BASIC ITEMS SUCH AS FOOD AND WATER A SOUTHLAND SPOKESWOMAN SAID THE COMPANY IS TURNING OVER THE RESULTS OF ITS INVESTIGATION TO THE LOS ANGELES CITY ATTORNEY'S OFFICE A CITY ORDINANCE MAKES IT A MISDEMEANOR TO RAISE PRICES MORE THAN 10 AFTER AN EMERGENCY IS DECLARED SAID GREG PARHAM DEPUTY CITY ATTORNEY MR PARHAM SAID THE CITY HASN'T CHARGED ANYONE WITH PROFITEERING BUT HE ADDED THAT THERE IS EVIDENCE OF WIDESPREAD PRICEGOUGING BY MERCHANTS IN THE HARDEST HIT PARTS OF THE CITY AND THAT AN INVESTIGATION CONTINUES SOUTHLAND DECLINED TO RELEASE THE NAMES OR LOCATIONS OF THE EIGHT FRANCHISES A SPOKESWOMAN SAID THE COMPANY HASN'T PREVIOUSLY TERMINATED ANY FRANCHISEES FOR PRICEGOUGING 9401250109 940125 COURT UPHOLDS CHANGES IN NASDAQ ORDER SYSTEM WASHINGTON THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA HAS UPHELD CHANGES ON A ONEYEAR PILOT BASIS TO THE NASDAQ STOCK MARKET'S SMALL ORDER EXECUTION SYSTEM SET TO GO INTO EFFECT TODAY THE SECURITIES AND EXCHANGE COMMISSION LATE LAST MONTH APPROVED A NATIONAL ASSOCIATION OF SECURITIES DEALERS PROPOSAL TO REDUCE THE MAXIMUM SIZE OF ORDERS FOR SOES TO 500 SHARES FROM AN EXISTING 1000SHARE LIMIT THE RULES ALSO PROHIBIT SHORT SALES ON THE SYSTEM THE SEC DELAYED IMPLEMENTING THE RULES UNTIL TODAY FROM THE PLANNED EFFECTIVE DATE OF JAN 7 TO PREPARE FOR THE COURT ACTION SEVERAL SMALL BROKERAGE FIRMS THAT DEPEND ON SOES FOR MUCH OF THEIR BUSINESS HAD SOUGHT INTERVENTION FROM THE COURT THE FIRMS HAVE CLAIMED THEY COULD BE PUT OUT OF BUSINESS OR FORCED TO LAY OFF EMPLOYEES BECAUSE OF THE RULES BUT NASDAQ MARKET MAKERS HAVE SAID FOR YEARS THAT THESE SOES ACTIVIST FIRMS ABUSE THE SYSTEM BY SENDING REPEATED ORDERS TO MARKET MAKERS IN RAPID SUCCESSION WHEN STOCK PRICES CHANGE QUICKLY THESE PROFESSIONALS TRADE LARGE AMOUNTS OF STOCK BEFORE MARKET MAKERS CAN ADJUST THE ADVERTISED PRICES AT WHICH THEY WILL BUY OR SELL COSTING THE MARKET MAKERS THOUSANDS OF DOLLARS IN THE ORDER TODAY THE COURT SAID PETITIONERS HAVE NOT DEMONSTRATED THE REQUISITE IRREPARABLE INJURY TO WARRANT THE RELIEF SOUGHT 9401250108 940125 INTERNATIONAL JAPAN'S AUTO OUTPUT FELL 102 IN '93 GROUP SAYS TOKYO AP JAPAN'S AUTO PRODUCTION IN 1993 FELL 102 THE LARGEST DECLINE IN 46 YEARS AS SALES SLUMPED AT HOME AND ABROAD THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID JAPAN THE WORLD'S TOP AUTOMOBILE PRODUCER SINCE 1980 THIS YEAR IS LIKELY TO PLACE SECOND BEHIND THE US THE TRADE GROUP SAID WHILE JAPAN'S PRODUCTION FELL TO 11227545 VEHICLES IN 1993 US OUTPUT ROSE 12 FROM THE PREVIOUS YEAR TO 10867658 LAST YEAR ALSO MARKED THE FIRST TIME SINCE WORLD WAR II THAT JAPAN'S AUTO PRODUCTION FELL THREE CONSECUTIVE YEARS IT SLIPPED 18 IN 1991 AND 56 IN 1992 JAPAN'S DOMESTIC VEHICLE SALES FELL 71 FROM A YEAR EARLIER TO 6467278 IN 1993 EXPORTS FELL ABOUT 11 TO 502 MILLION VEHICLES 9401250107 940125 PACKARD BELL HEADQUARTERS IS VACATED DUE TO QUAKE CHATSWORTH CALIF PACKARD BELL ELECTRONICS INC SAID IT MOVED OUT OF ITS HEADQUARTERS HERE FOLLOWING EXTENSIVE DAMAGE FROM LAST WEEK'S EARTHQUAKE THE NATION'S FOURTHLARGEST PERSONAL COMPUTER MAKER SAID IT RELOCATED ITS ADMINISTRATIVE TECHNICALSUPPORT AND PRODUCTION OPERATIONS TO 160000 SQUARE FEET OF LEASED SPACE IN WESTLAKE VILLAGE ABOUT 20 MILES FROM HERE UNTIL THE HEADQUARTERS WAS MOVED OVER THE WEEKEND MUCH OF THE CLOSELY HELD COMPANY WAS RUN FROM THE CHATSWORTH PARKING LOT WHERE DEPARTMENTS WERE ORGANIZED AROUND GROUPS OF CONFERENCEROOM TABLES PACKARD BELL OFFICIALS SAID THE INITIAL DAMAGE FROM THE QUAKE WAS COMPOUNDED BY FLOODING LAST WEDNESDAY WHEN CITY CREWS RESTORED WATER SERVICE SETTING OFF FIRE SPRINKLERS AND FLOODING THE DAMAGED BUILDING THE COMPANY SAID ABOUT 70 OF ITS PRODUCTION CAPACITY WAS TEMPORARILY KNOCKED OUT MOST OF THAT WORK IS NOW BEING SHIFTED TO THE NEW WESTLAKE SITE PACKARD BELL ALSO SAID IT HAS ACCELERATED THE PREVIOUSLY ANNOUNCED MOVE OF ITS TECHNICALSUPPORT BUSINESS TO UTAH THAT OPERATION INITIALLY NOT SCHEDULED TO OPEN UNTIL MARCH WILL NOW BEGIN TAKING CALLS BY EARLY FEBRUARY MEANTIME PACKARD BELL SAID IT'S CONTINUING TO SEARCH FOR A PERMANENT HEADQUARTERS SITE AS TO WHETHER THAT NEW HOME WOULD BE IN CALIFORNIA OFFICIALS DECLINED TO COMMENT 9401250106 940125 TECHNOLOGY & HEALTH EPA TO REQUIRE DEVICE TO CAPTURE GASOLINE VAPORS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SAID IT WILL REQUIRE THAT NEW CARS AND TRUCKS INCLUDE A DEVICE THAT CAPTURES GASOLINE VAPORS THAT OTHERWISE WOULD ESCAPE INTO THE ATMOSPHERE DURING REFUELING THE DEVICE IS AN ENLARGED AND SOMEWHAT RECONFIGURED VERSION OF THE CHARCOALFILLED CANISTER REQUIRED TO CAPTURE EVAPORATIVE EMISSIONS ON CURRENTMODEL AUTOMOBILES BUT WHERE EXISTING CANISTERS ARE IN THE ENGINE COMPARTMENT OR NEAR THE GAS TANK THE NEW CANISTER WILL EXTEND TO THE FILLER NECK WHERE GASOLINE IS PUMPED IN AT THE SERVICE STATION THE NEW REFUELING CANISTERS ARE REQUIRED FOR AUTOMOBILES UNDER THE 1990 CLEAN AIR ACT IN ISSUING ITS FINAL RULE ON THE MATTER THE EPA EXTENDED THE REQUIREMENT TO TRUCKS THOUGH WITH A SLOWER PHASEIN PERIOD AUTO COMPANIES AND THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AN AGENCY WITHIN THE TRANSPORTATION DEPARTMENT HAVE LONG CONTENDED THAT THE NEW CANISTERS WOULD POSE A SAFETY HAZARD BY INCREASING THE LIKELIHOOD OF FIRE DURING A CRASH BUT ENVIRONMENTAL GROUPS AND THE EPA NOTING THAT VEHICLE USE HAS DOUBLED SINCE THE EARLY 1970S WHEN EVAPORATIVE EMISSIONS CONTROLS FIRST CAME INTO BEING CONTEND THAT THE NEW DEVICES ARE NEEDED TO REDUCE SMOG IT'S A HUGE STEP FORWARD THAT WILL BE GOOD FOR CONSUMERS SAID EPA ADMINISTRATOR CAROL BROWNER THE EPA SAID THE NEW RULE WHEN FULLY PHASED IN WOULD REDUCE EVAPORATIVE EMISSIONS 95 BRIAN O'NEILL PRESIDENT OF THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY SAID HIS GROUP WOULD HAVE PREFERRED THE FEDERAL GOVERNMENT TO IMPOSE THE REFUELING CONTROLS AT THE GASOLINE PUMP AN OPTION HE TERMED A CLEAR AND SAFE ALTERNATIVE THE 1990 CLEANAIR LAW DID IMPOSE REFUELING CONTROLS ON GAS PUMPS AT SERVICE STATIONS IN 55 CITIES INCLUDING LOS ANGELES ST LOUIS AND WASHINGTON WHERE SMOG IS ESPECIALLY SEVERE NEARLY ALL OF THOSE CITIES HAVE BY NOW INSTALLED TECHNOLOGIES TO RECAPTURE VAPORS FROM THE PUMP NOZZLE VARYING IN SOPHISTICATION FROM A SOMEWHAT CLUMSY PLASTIC SHEATH TO LESSOBTRUSIVE VACUUM DEVICES AN EPA OFFICIAL SAID THESE REQUIREMENTS ARE LIKELY TO BE SCALED BACK OR DROPPED ONCE THE ONBOARD CONTROLS ARE FULLY IN PLACE AUTOMOBILE MAKERS MUST INSTALL THE NEW REFUELING CANISTERS IN 40 OF NEW CARS BY THE 1998 MODEL YEAR 80 OF NEW CARS BY THE 1999 MODEL YEAR AND 100 OF NEW CARS BY THE 2000 MODEL YEAR MAKERS OF LIGHT TRUCKS SUCH AS MINIVANS PICKUPS AND DELIVERY TRUCKS MUST PHASE IN THE CANISTERS FROM 2001 TO 2003 FOR TRUCKS UP TO 6000 POUNDS AND FROM 2004 TO 2006 FOR TRUCKS OF 6000 TO 8500 POUNDS THE EPA ESTIMATES THAT IMPLEMENTING THE RULE WILL COST 10 PER VEHICLE WHILE THE INDUSTRY ESTIMATES THE RULE WILL COST ABOUT 30 PER VEHICLE 9401250105 940125 ENTERPRISE NEW YORK SMALL FIRMS SHOW MORE OPTIMISM THAN AT START OF 1993 NEW YORK IN A TURNAROUND FROM A YEAR AGO A MAJORITY OF SMALL AND MEDIUMSIZE BUSINESSES IN THE NEW YORK METROPOLITAN AREA EXPECT HIGHER SALES AND PROFITS THIS YEAR AND MORE THAN A THIRD SAID THEY WILL HIRE NEW PERMANENT WORKERS SHOULD BUSINESS IMPROVE ACCORDING TO A SURVEY BY CONSULTING FIRM ARTHUR ANDERSEN MORE THAN 66 OF 305 EXECUTIVES POLLED JUST BEFORE THE YEAR END EXPECT A SALES INCREASE THIS YEAR COMPARED WITH 39 IN A YEAREND 1992 SURVEY FIFTYNINE PERCENT SEE HIGHER PROFITS COMPARED WITH 34 IN 1992 MORE THAN 43 OF THE RESPONDENTS SAID THEY PLAN TO EXPAND THEIR PERMANENT WORK FORCES IF BUSINESS IMPROVES ANOTHER 25 SAID THEY WILL HIRE ADDITIONAL TEMPORARY WORKERS WHILE SLIGHTLY MORE THAN 23 SAID THEY WILL INCREASE THE OVERTIME WORK OF THEIR CURRENT EMPLOYEES IN THE 1992 SURVEY ONLY 21 INDICATED THEY WOULD INCREASE THEIR PERMANENT HIRES WITH OTHERS SAYING THEY WOULD DO MORE WITH FEWER PEOPLE 9401250104 940125 WHO'S NEWS EXGM CHAIRMAN READY TO ROLL AGAIN BUT WITH ELECTRICITY STEMPEL PURSUES FORMATION OF ELECTRICCAR MAKER BUT BATTERIES COME FIRST BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORMER GENERAL MOTORS CORP CHAIRMAN ROBERT C STEMPEL WANTS TO DRIVE BACK INTO THE AUTO BUSINESS THIS TIME IN AN ELECTRIC CAR MR STEMPEL OUSTED AS CHAIRMAN OF THE WORLD'S LARGEST AUTO MAKER IN A NOVEMBER 1992 BOARDROOM COUP SAID HE'S IN THE PRELIMINARY STAGES OF FORMING A VERY SMALL COMPANY THAT WILL BUILD AND SELL ELECTRIC CARS IT'S A BUSINESS MR STEMPEL'S SUCCESSORS AT GM HAVE BACKED AWAY FROM IN THEIR DRIVE TO BOOST GM'S PROFITS INDEED SHORTLY AFTER MR STEMPEL'S FORCED RESIGNATION GM SHELVED PLANS FOR ONE OF HIS FAVORITE PROJECTS THE HIGHVOLUME MANUFACTURE OF AN ELECTRICPOWERED TWOSEATER CALLED THE IMPACT EVEN THOUGH MOST BIG THREE EXECUTIVES QUESTION WHETHER IT'S POSSIBLE TO MAKE MONEY SELLING ELECTRIC VEHICLES MR STEMPEL SAID THE ELECTRIC CAR IS INEVITABLE NEXT STEP IN THE EVOLUTION OF THE US AUTOMOBILE TO WORK WITH TODAY'S CARS YOU HAVE TO HAVE A COMPUTER IN YOUR OTHER HAND MR STEMPEL SAID IT'S ONLY A LOGICAL EXTENSION TO GO A STEP FURTHER AND DO IT ALL ELECTRONICALLY MR STEMPEL CONFIRMING A STORY IN YESTERDAY'S EDITION OF THE TRADE JOURNAL AUTOMOTIVE NEWS SAID HE FIRST PLANS TO FOCUS ON MASSPRODUCTION OF A BATTERY THAT WILL WORK FOR HIS CAR VENTURE TO THAT END HE AIMS TO HELP ENERGY CONVERSION DEVICES INC A TROY MICH COMPANY HE JOINED EARLIER THIS MONTH AS A BOARD MEMBER ENERGY CONVERSION IS STRUGGLING TO MASSPRODUCE A NICKEL METAL HYDRIDE BATTERY WHICH SHOWS PROMISE FOR IMPROVING ON THE RANGE OF 80 MILES OR SO THAT CURRENT LEADACID BATTERIES DELIVER ON MOST ELECTRIC CARS THAT WILL BE NO EASY TASK THE ECD BATTERY'S MATERIALS ARE EXPENSIVE THAT PUTS IT AT A COST DISADVANTAGE AGAINST LEADACID BATTERIES CURRENTLY THE MOST POPULAR ENERGY SOURCE FOR MOST ELECTRIC CARS MR STEMPEL SAYS IF THE ECD BATTERY IS SUCCESSFUL HE THEN MAY BEGIN ASSEMBLING CAPITAL TO FORM HIS OWN ELECTRICCAR ASSEMBLY VENTURE TO DATE HE SAID HE HASN'T INCORPORATED OR ENLISTED VENTURE CAPITAL PARTNERS FOR A CARMAKING OPERATION EVENTUALLY MR STEMPEL SAYS HE COULD WIND UP SUPPLYING HIS CARS TO OTHER AUTO MAKERS INCLUDING GM ALL MAJOR AUTO MAKERS FACE A MANDATE FROM CALIFORNIA TO MAKE ELECTRIC VEHICLES ACCOUNT FOR 2 OF THEIR TOTAL SALES IN THE STATE BY 1998 MR STEMPEL SAID HE DOESN'T AGREE WITH CALIFORNIA'S MANDATE BUT ADDED THAT HIS AMBITION IS TO CREATE A CAR THAT PEOPLE WOULD BUY WITH OR WITHOUT A GOVERNMENT DECREE GM'S IMPACT HE SAID COULD HAVE BEEN SUCH A CAR FRANKLY HE SAID WE HAD A CAR THAT WAS PRETTY NEAT 9401250103 940125 WORLD MARKETS LONDON STOCKS REBOUND TO RECOUP MOST LOSSES IN FRANKFURT BARGAIN BUYING GIVES STOCKS A LIFT A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS STAGED A LATE TURNAROUND TO END ONLY SLIGHTLY LOWER RECOUPING MOST OF THE DAY'S LOSSES FROM PROFITTAKING AND ECONOMIC WORRIES FRANKFURT SHARES AFTER FALLING MORE THAN 3 LAST WEEK POSTED SMALL GAINS FROM BARGAIN HUNTING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11299 DOWN 157 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 20518 UP 283 OR 14 WITH RESORTS OF MALAYSIA POSTING A 51 GAIN IN LOCAL CURRENCY FISHING STOCKS TRAILED AT 6957 DOWN 334 OR 46 WITH TAIYO FISHERY OF JAPAN DOWN 63 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED DOWN 28 POINTS TO 34814 AFTER HITTING A SESSION LOW OF 34623 THE FT 30STOCK INDEX ROSE 29 POINTS TO 26714 VOLUME WAS 8002 MILLION SHARES DOWN FROM 9799 MILLION SHARES IN THE PREVIOUS SESSION MUCH OF THE LATE REBOUND WAS ATTRIBUTED TO ARBITRAGE TRADING BETWEEN THE STOCK AND FUTURES MARKETS STOCK PRICES FELL ON SELLING OF BASKETS OF STOCKS AND BUYING OF FUTURES BUT THIS THEN LEFT MARKET MAKERS SHORT OF EQUITIES AND BUYING IN TURN PUSHED PRICES BACK UP FOR MOST OF THE LONDON SESSION STOCKS WERE DOWN BECAUSE OF PROFITTAKING FRESH EVIDENCE THAT THE BRITISH GOVERNMENT PROBABLY WILL DEFER CUTTING BASE LENDING RATES AND POLITICAL WORRIES ABOUT HIGHER TAXES A BRITISH INDUSTRY GROUP SAID THAT ORDERS AND PRODUCTION IN THE PAST FOUR MONTHS ROSE AT THEIR STRONGEST PACE IN ALMOST FIVE YEARS AND THAT BUSINESS CONFIDENCE STRENGTHENED FOR THE FIFTH QUARTER IN A ROW THIS DEFLATED HOPES FOR REDUCED INTEREST RATES AND THE MARKET WAS NERVOUS ABOUT WEEKEND NEWS THAT TAXES UNDER THE GOVERNING CONSERVATIVE PARTY WILL BE HIGHER THIS YEAR THAN EXPECTED IN FRANKFURT THE DAX 30STOCK INDEX WHICH PLUNGED 4059 POINTS FRIDAY ROSE 440 TO 208001 AFTER THE MARKET'S RECENT DECLINES PRICES WERE CONSIDERED ATTRACTIVE ONCE AGAIN HEAVY VOLUME IN THE DAX FUTURES MARKET ALSO HELPED PULL BLUE CHIPS HIGHER THE BOURSE ALSO MAY HAVE BEEN BOOSTED BY A GOLDMAN SACHS BUY RECOMMENDATION FOR THE GERMAN MARKET IN PARIS STOCKS NOT ONLY MANAGED AN AFTERNOON TURNAROUND REVERSING EARLY LOSSES BUT ENDED WITH A SHARP GAIN OF 14 AS YESTERDAY MARKED THE END OF THE JANUARY TRADING ACCOUNT THE EARLY DROP FROM PROFITTAKING HAD BEEN EXPECTED THE COMEBACK BEGAN AFTER A WESTERN GERMAN STATE'S INFLATION DATA FUELED HOPES THAT THE GERMAN AND FRENCH CENTRAL BANKS WILL BE LESS RELUCTANT TO CUT INTEREST RATES THE BUYING MOMENTUM CAUSED INVESTORS WITH SHORT OR OVERSOLD POSITIONS TO BUY TO AVOID OR CUT LOSSES A HERDBUYING MENTALITY PREVAILED IN THE SESSION'S FINAL TWO HOURS IN MILAN SHARES STRENGTHENED LED BY INDUSTRIAL ISSUES WHICH WON INVESTORS' FOCUS IN A CONTINUING SHIFT FROM BANKING AND INSURANCE STOCKS TO CYCLICAL PLAYS ON HOPES FOR SIGNS OF CORPORATE RECOVERY IN MADRID EQUITIES DROPPED AS THE MARKET TOOK A REST FROM A RECENT BULL RUN AND INVESTORS REELED IN PROFITS IN STOCKHOLM PRICES FINISHED HIGHER RECOVERING FROM A WEAK OPENING WITH GAINERS PACED BY BLUE CHIPS AND FORESTPRODUCTS ISSUES IN SYDNEY SHARES DROPPED 12 MAINLY BECAUSE OF WEAKNESS IN THE PRICE OF GOLD AND THE TOKYO MARKET'S FREEFALL MONDAY AND FEARS IT WOULD SINK FURTHER IN HONG KONG INVESTORS SHOOK OFF THE TOKYO DEBACLE AND STOCKS CLIMBED 12 THOUGH THE KEY INDEX FAILED TO HANG ON TO GAINS FROM AN INITIAL SURGE CORPORATE DEVELOPMENTS AFFECTING THE HOTEL AND PROPERTY SECTORS HELPED BOOST PRICES LED BY BUYING BY LOCAL AND JAPANESE INVESTORS THOUGH THIS MASKED SIZABLE SELLING IN MANY STOCKS IN SINGAPORE PRICES ENDED MIXED THOUGH THE MAIN INDEX JUMPED 16 ON BLUECHIP BUYING SENTIMENT REMAINED CAUTIOUS AS TECHNICAL FACTORS CONTINUED TO DRIVE THE MARKET'S DIRECTION IN KUALA LUMPUR THE BENCHMARK GAUGE EDGED UP BUT THIS SUPPORT FOR BLUE CHIPS DIDN'T HELP THE BROADER MARKET WHICH WAS GENERALLY LOWER BUT IN SEOUL EQUITIES ADVANCED 12 SUPPORTED BY SOLID LIQUIDITY AS INVESTORS' DEPOSITS WITH BROKERAGE HOUSES MARKED A RECORD HIGH 43 TRILLION WON 531 BILLION INSTITUTIONAL INVESTORS RESUMED MAKING AGGRESSIVE PURCHASES AND PRICES ROSE ACROSS THE BOARD AND IN BANGKOK STOCKS RALLIED 38 THOUGH TURNOVER WAS SLUGGISH BARGAIN HUNTERS SNAPPED UP FINANCIAL BLUE CHIPS LEADING TO GAINS IN OTHER SECTORS AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AEROSPACE SOARED 1575 PENCE OR 37 TO 44375 PENCE 662 ON A WEEKEND NEWS REPORT IN BRITAIN THAT THE DEFENSE CONTRACTOR AND AUTO MAKER WAS CONSIDERING SELLING AN ADDITIONAL 20 OF ITS ROVER VEHICLE OPERATION TO HONDA WHICH WOULD DOUBLE THE JAPANESE AUTO MAKER'S HOLDING TO 40 AND GIVE IT EFFECTIVE MANAGEMENT CONTROL BUT BRITISH AEROSPACE YESTERDAY CALLED THAT REPORT SPECULATION 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 9401250102 940125 MARKETING & MEDIA CONSORTIUM INCLUDING HEARST TO OFFER CONSUMERS WIDE VARIETY OF TV SERVICES BY CHRISTOPHER J CHIPELLO AND MEG COX STAFF REPORTERS OF THE WALL STREET JOURNAL MONTREAL GROUPE VIDEOTRON LTEE UNVEILED AN AMBITIOUS PLAN TO PROVIDE INTERACTIVE TELEVISION TO 34000 CANADIAN HOMES BY 1995 THE NEW SYSTEM WHICH WILL PROVIDE HOME BANKING AND SHOPPING SERVICES WILL BE RUN BY A CONSORTIUM THAT INCLUDES HEARST CORP INVESTMENT IN THE SYSTEM IS EXPECTED TO TOTAL 750 MILLION CANADIAN DOLLARS US572 MILLION DURING THE NEXT FIVE TO EIGHT YEARS ABOUT C250 MILLION WOULD COME FROM CONSORTIUM MEMBERS WITH THE REST TO BE GENERATED BY THE CONSORTIUM'S OPERATIONS PROJECT PARTNERS SAY WHAT DISTINGUISHES THEIR EFFORT FROM OTHER ANNOUNCED EXPERIMENTS IS ITS SIZE AND PRICE THE SERVICE WILL BE FREE TO CONSUMERS COSTS WILL BE BORNE BY THE COMPANIES THAT PROVIDE THE SERVICES AND BY ADVERTISERS THE SERVICE WILL BEGIN IN QUEBEC PROVINCE IN THE AREA NEAR CHICOUTIMI AND EXPAND TO 14 MILLION HOMES IN THE QUEBEC CITY AND MONTREAL AREAS BETWEEN 1996 AND 2002 VIDEOTRON CANADA'S SECONDBIGGEST CABLE OPERATOR ALREADY HAS MORE THAN 220000 SUBSCRIBERS FOR ITS VIDEOWAY INTERACTIVE SYSTEM IN QUEBEC PROVINCE THE SYSTEM LAUNCHED IN 1990 ENABLES VIEWERS TO PLAY VIDEO GAMES OR CONTROL CAMERA ANGLES FOR SPORTING EVENTS BY MANIPULATING DATA FED INTO A DECODER BOX THE NEW SYSTEM WHICH INITIALLY WILL BE MOSTLY IN FRENCH WILL ENABLE USERS TO PAY BILLS BROWSE THROUGH VIDEO CATALOGS OR BUY GOODS AND SERVICES THE SERVICE WILL PROVIDE A MAGNETICCARD READER AND PRINTER USERS EVENTUALLY MAY BE ABLE TO USE THE SYSTEM TO PROGRAM THEIR HOME HEATING AND LIGHTING CONSUMERS GENERALLY WON'T PAY HOOKUP OR USAGE CHARGES FOR THE SYSTEM THOUGH THERE COULD BE A MINIMAL FEE TO COVER SERVICING OF TERMINALS THE FOUNDING PARTNERS INCLUDE NATIONAL BANK OF CANADA HYDROQUEBEC THE PROVINCE'S ELECTRIC UTILITY THE CANADIAN POSTAL SERVICE AND QUEBEC'S LOTTERY AUTHORITY HEARST WITH A 10 STAKE SAID IT WILL PROVIDE AN ELECTRONIC YELLOWPAGES DIRECTORY AND A TRANSACTION SERVICE FOR RESTAURANT RESERVATIONS AND THEATERTICKET PURCHASES MORE THAN 75 COMPANIES HAVE SIGNED UP TO SELL PRODUCTS AND SERVICES A HEARST SPOKESMAN SAID INCLUDING COCA COLA CO AVON PRODUCTS INC AND SEARS CANADA A UNIT OF SEARS ROEBUCK & CO VIEWERS AT HOME WILL BE ABLE TO LOOK AT PHOTOGRAPHS OF MERCHANDISE FROM SEARS OR AVON FOR EXAMPLE AND ORDER MERCHANDISE DIRECTLY A RECEIPT WILL BE PRINTED OUT IMMEDIATELY BY THE SETTOP BOX THE PROJECT IS AN IMPORTANT ONE FOR CLOSELY HELD HEARST MARKING THE COMPANY'S FIRST MAJOR VENTURE IN THE EMERGING MULTIMEDIA MARKET HEARST WHICH PUBLISHES NEWSPAPERS BOOKS AND MAGAZINES AND OWNS RADIO AND TELEVISION STATIONS FORMED A NEW MEDIA GROUP LESS THAN A YEAR AGO HEADED BY ALFRED C SIKES FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION FRANK A BENNACK JR HEARST'S CHIEF EXECUTIVE OFFICER MADE IT CLEAR AT A NEW YORK NEWS CONFERENCE THAT HEARST'S DOWNSIDE RISK IS LIMITED AS A 10 OWNER IN THE NEW VENTURE IT IS PUTTING UP ABOUT 20 MILLION IT WILL SPEND ADDITIONAL MONEY TO DEVELOP THE ELECTRONICBUSINESS DIRECTORY SAID MR BENNACK THOUGH HE DECLINED TO ESTIMATE THE COST MR SIKES SAID THAT HEARST'S DIRECTORY WILL BE SIMILAR TO A YELLOW PAGES BUT BUSINESSES LISTED IN IT CAN UPDATE INFORMATION DAILY PROVIDE IMAGES AND DELIVER COUPONS ON A PRINTER AVAILABLE AS PART OF THE HARDWARE 9401250101 940125 USA WASTE TO ACQUIRE ENVIROFIL IN STOCK DEAL TOTALING 1395 MILLION DALLAS USA WASTE SERVICES INC SAID IT AGREED TO ACQUIRE HOUSTONBASED ENVIROFIL INC IN EXCHANGE FOR STOCK VALUED AT 1395 MILLION BOTH COMPANIES ARE IN THE SOLIDWASTE COLLECTION AND DISPOSAL BUSINESS THE COMBINED ENTITY WILL RETAIN USA WASTE'S NAME AND GENERATE ANNUAL REVENUE OF ABOUT 175 MILLION USA WASTE SAID UNDER THE AGREEMENT ENVIROFIL SHAREHOLDERS WILL RECEIVE ONE SHARE OF USA WASTE'S COMMON STOCK FOR EVERY FIVE SHARES OF ENVIROFIL'S COMMON STOCK OUTSTANDING THE TRANSACTION WHICH IS SUBJECT TO SHAREHOLDER APPROVAL WILL INCREASE USA WASTE'S STOCK OUTSTANDING TO 208 MILLION COMMON SHARES FROM 115 MILLION COMMON SHARES DONALD F MOOREHEAD JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF USA WASTE SAID THE ACQUISITION WILL POSITION USA WASTE FOR WHAT THE COMPANY EXPECTS TO BE A CONSOLIDATION IN THE SOLIDWASTE INDUSTRY AFTER THE MERGER MR MOOREHEAD 43 YEARS OLD WILL CONTINUE IN HIS POSTS ENVIROFIL'S PRESIDENT DAVID SUTHERLANDYOEST 37 WILL BE PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMBINED COMPANY USA WASTE'S CHIEF FINANCIAL OFFICER EARL E DEFRATES 50 WILL CONTINUE IN THAT POSITION USA WASTE SHARES CLOSED AT 15 UP 50 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ENVIROFIL ROSE 125 CENTS TO 3125 IN NASDAQ STOCK MARKET TRADING 9401250100 940125 INTERNATIONAL DATA ON FINANCES WERE WITHHELD VW'S SEAT ADMITS BY AUDREY CHOI AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL VOLKSWAGEN AG'S SPANISH SUBSIDIARY SEAT SA CONFIRMED THAT ITS FORMER CHAIRMAN WITHHELD FULL INFORMATION ABOUT THE EXTENT OF THE COMPANY'S FINANCIAL CRISIS FROM VW BUT THE UNIT OFFERED NO EXPLANATIONS AND REMAINED TIGHTLIPPED ABOUT THE THINLY VEILED THREATS FROM GERMAN HEADQUARTERS OF POSSIBLE LEGAL ACTION HIGHLIGHTING A BREAKDOWN IN REPORTING AND CONTROL MECHANISMS BETWEEN VW AND ITS UNITS THE FIASCO AT SEAT PUSHED THE GROUP INTO A LOSS OF 23 BILLION MARKS 131 BILLION LAST YEAR AND IS NOW THE FOCUS OF A BATTLE BETWEEN VW CHAIRMAN FERDINAND PIECH AND THE STRUGGLING UNIT ALREADY ANGERED BY THE EARNINGS SHOCK FROM SEAT WHICH FORCED HIM TO EAT HIS OFTREPEATED PLEDGES OF GETTING THE VW GROUP OUT OF THE RED IN 1993 MR PIECH NOW HAS HIRED EXTERNAL AUDITORS TO INVESTIGATE HOW AND WHY DETAILS OF SEAT'S FINANCIAL SITUATION WERE HIDDEN FROM THE PARENT COMPANY ONCE THE RESULTS OF AN AUDIT ARE COMPLETE WE WILL HAVE TO TALK ABOUT THE CONSEQUENCES AND POSSIBLY WHAT LEGAL ACTIONS MUST BE TAKEN SAID A VW SPOKESMAN IN WOLFSBURG GERMANY WHERE VW IS BASED OVER THE WEEKEND MR PIECH TOLD SPANISH NEWSPAPER EL PAIS THAT HE CONSIDERED THE EVENTS DELIBERATE MISINFORMATION REPRESENTING NOT ONLY BAD MANAGEMENT BUT AN OFFENSE WITH CRIMINAL CONSEQUENCES FORMER SEAT CHAIRMAN JUAN ANTONIO DIAZ ALVAREZ WAS UNAVAILABLE TO COMMENT ACCORDING TO A PRELIMINARY INTERNAL VW INVESTIGATION A REPORT WARNING THAT SEAT WAS TECHNICALLY BANKRUPT WAS PREPARED BY THENFINANCE DIRECTOR EBERHARDT MUELLER IN JUNE THE REPORT WHICH PREDICTED THAT LOSSES FOR THE YEAR WOULD EXCEED THE COMPANY'S SHARE CAPITAL OF 80 BILLION PESETAS 5573 MILLION HOWEVER WASN'T PRESENTED TO A JUNE 23 MEETING OF SEAT'S SUPERVISORY BOARD INSTEAD VW MANAGERS AT THAT MEETING WERE TOLD TO EXPECT A 12 BILLION PESETAS SHORTFALL VW HEADQUARTERS WAS UNAWARE OF THE EXTENT OF THE PROBLEMS UNTIL SEPTEMBER SEAT REQUIRED A 22 BILLION MARK BAILOUT FROM VW MR MUELLER WHOSE REPORT VW DISCOVERED IN OCTOBER WAS SENT INTO RETIREMENT BY SEAT MANAGEMENT AFTER THE JUNE BOARD MEETING ALTHOUGH UNABLE TO PROVIDE HIS EXACT AGE SEAT SAID IT WAS TIME FOR MR MUELLER TO RETIRE MR PIECH'S CRUSADE TO GET TO THE BOTTOM OF THE SEAT QUESTION COMES AGAINST THE BACKDROP OF SOME RECENT CORPORATE BOMBSHELLS IN SPAIN AND GERMANY NAMELY THE NEAR BANKRUPTCY AT GERMAN CONGLOMERATE METALLGESELLSCHAFT AG AND THE STATE TAKEOVER IN SPAIN OF BANCO ESPANOL DE CREDITO OR BANESTO THE CRISIS AT METALLGESELLSCHAFT WHERE THE SUPERVISORY BOARD APPARENTLY WAS UNAWARE OF MOUNTING LOSSES AND SPECULATIVE DEALS HAS CREATED CONCERN ABOUT WHETHER THESE SUPERVISORY BODIES AT GERMAN CORPORATIONS ARE DOING THEIR JOBS OF OVERSEEING MANAGEMENT AND PROTECTING SHAREHOLDER INTERESTS BANESTO'S PROBLEMS ARISING SIX MONTHS AFTER THE BANK LAUNCHED SPAIN'S BIGGESTEVER RIGHTS ISSUE SIMILARLY RAISE QUESTIONS ABOUT MARKET SUPERVISION AND ACCOUNTING PRACTICES THE PUBLIC AIRING OF MR PIECH'S GRIPES AGAINST MR DIAZ ALVAREZ ALSO SIGNALS THE DESPERATION AT VW EUROPE'S LARGEST CAR MAKER RANKS AS ONE OF ITS MOST TROUBLED TRYING TO CLAW ITS WAY BACK INTO THE BLACK IN THE FACE OF A DISMAL EUROPEAN CAR MARKET AND PLUMMETING SALES IN 1993 SALES AT THE VW GROUP PLUNGED 201 STEEPER THAN THE 151 DROP FOR THE EUROPEAN MARKET AS A WHOLE AND VW'S MARKET SHARE FELL TO 164 FROM 175 IN 1992 IN FRANKFURT TRADING YESTERDAY VW LOST 650 MARKS TO 424 MARKS 9401250099 940125 DIVIDEND NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF THE ENTERTAINMENT CONCERN RAISED ITS QUARTERLY DIVIDEND 20 TO 75 CENTS FROM 625 CENTS PAYABLE MAY 20 TO STOCK OF RECORD APRIL 15 THE INCREASE DISNEY'S SEVENTH IN SEVEN YEARS CAME DESPITE FINANCIAL PROBLEMS AT THE EURO DISNEY THEME PARK THAT CHAIRMAN MICHAEL EISNER HAS CHARACTERIZED AS DREADFUL A COMPANY SPOKESMAN NOTED THAT WHILE NET INCOME FOR THE SEPT 30 YEAR PLUNGED PRIMARILY BECAUSE OF A 3715 MILLION ACCOUNTING CHARGE RELATED TO THE TROUBLED PARK OUTSIDE PARIS OUR THREE BASIC BUSINESS OPERATIONS GREW IN THE AREA OF 16 TO 26 9401250098 940125 MARKETING & MEDIA INSTANT BOOKS ON BOBBITTS HARDING KERRIGAN ARE SET NEW YORK STILL EAGER FOR MORE DIRT ON TONYA HARDING AND NANCY KERRIGAN SUFFERING BOBBITT WITHDRAWAL NOW THAT THE TWO TRIALS ARE OVER REST ASSURED THE INSTANT BOOKS ARE ON THE WAY ST MARTIN'S PRESS ANNOUNCED THAT IT PLANS A QUICKIE UNAUTHORIZED BIO OF ATTACKED ICE SKATER NANCY KERRIGAN DREAMS OF GOLD THE NANCY KERRIGAN STORY WILL BE AVAILABLE FEB 1 BEFORE THE 1994 WINTER OLYMPIC GAMES BEGIN IN LILLEHAMMER NORWAY THE 192PAGE PAPERBACK IS BEING WRITTEN BY NEW YORK SPORTSWRITERS WAYNE COFFEY AND FILIP BONDY THE PUBLISHER SAID ZEBRA BOOKS A PUBLISHER MOSTLY OF ROMANCE NOVELS SAID IT PLANS TO PUBLISH BOTH A BOBBITT BOOK AND A BOOK ABOUT TONYA HARDING THE SKATER WHOSE ENTOURAGE ALLEGEDLY HAD HER RIVAL SKATER ATTACKED BOTH BOOKS WILL BE IN STORES BY MIDFEBRUARY SAID WALTER ZACHARIUS CHAIRMAN OF ZEBRA CALLED THE BOBBITT CASE YOU DECIDE ZEBRA'S BOOK WILL BE NOTHING MORE THAN A TRANSCRIPT OF LORENA BOBBITT'S TRIAL FOR THE MUTILATION OF HUSBAND JOHN WITH A HASTILY WRITTEN FOREWARD ZEBRA'S OTHER BOOKS IS THIN ICE THE COMPLETE UNCENSORED STORY OF TONYA HARDING AMERICA'S BAD GIRL OF ICE SKATING THE BOOK IS BEING WRITTEN BY TWO JOURNALISTS WHO HAVE FOLLOWED THE SCANDAL MR ZACHARIUS SAID 9401250097 940125 TEXACO AMOCO POST INCREASES IN QUARTERLY NET OPERATING EARNINGS FELL ASHLAND GAINS ARCO AMERADA SHOW LOSSES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL FOURTHQUARTER NET INCOME AT TEXACO INC AND AMOCO CORP ROSE BECAUSE OF EXTRAORDINARY ITEMS THAT PROPPED UP THEIR NUMBERS BUT SHARPLY LOWER CRUDE OIL PRICES DURING THE LAST FEW MONTHS OF 1993 DROVE OPERATING EARNINGS LOWER FOR TEXACO AND AMOCO AND FOR ATLANTIC RICHFIELD CO WHICH POSTED A LOSS ASHLAND OIL INC'S NET INCOME AND OPERATING EARNINGS BOTH ROSE BUT AMERADA HESS CORP SWUNG TO A LOSS IN ITS FISCAL FIRSTQUARTER ENDED DEC 31 CRUDE OIL PRICES BEGAN TO WEAKEN LAST SUMMER AS IT BECAME APPARENT THAT GLOBAL SUPPLIES OF OIL FAR EXCEEDED DEMAND AND FAILURE BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO AGREE TO A PRODUCTION CUT AT ITS NOVEMBER MEETING EXACERBATED THE SITUATION CAUSING THE PRICE DECLINE TO QUICKEN OUTPUT FROM PRODUCERS OUTSIDE OPEC HAS ALSO GROWN IN RECENT MONTHS ESPECIALLY IN THE NORTH SEA WHERE A NUMBER OF NEW OIL FIELDS STARTED UP DURING THE LAST HALF OF THE YEAR THE RESULT WAS A DROP IN ENERGY PRICES THAT HURT MOST PRODUCERS BUT HELPED SOME OIL COMPANIES WITH BIG REFINING AND MARKETING OPERATIONS CRUDE OIL PRICES DURING THE FOURTHQUARTER OF 1993 AVERAGED ABOUT 4 PER BARREL BELOW THE FOURTHQUARTER OF 1992 AND US NATURAL GAS PRICES THOUGH STRONG WERE ALSO BELOW THE COMPARABLE 1992 QUARTER SAID AMOCO'S CHIEF EXECUTIVE OFFICER H LAURANCE FULLER TEXACO INC TEXACO SAID ITS FOURTHQUARTER NET INCOME CLIMBED 83 TO 339 MILLION OR 121 A SHARE FROM THE YEARAGO 313 MILLION OR 111 A SHARE WHICH WAS DEPRESSED BY A CHARGE IN THE LATEST PERIOD THE COMPANY HAD A GAIN FROM TAX BENEFITS RELATED TO ASSET SALES REVENUE SLIPPED 94 TO 858 BILLION FROM 948 BILLION QUARTERLY OPERATING EARNINGS HOWEVER FELL 34 TO 284 MILLION AS OIL PRICES SLUMPED THE WHITE PLAINS NY COMPANY SAID NET INCOME FOR 1993 GREW 21 TO 126 BILLION OR 447 A SHARE FROM 104 BILLION OR 363 A SHARE COSTCUTTING BENEFITS ACHIEVED IN THE EXPLORATION AND PRODUCTION SECTOR IN THE US DURING THE FOURTHQUARTER WERE MORE THAN OFFSET BY TUMBLING OIL PRICES OVERSEAS QUARTERLY EARNINGS FROM THIS SECTOR OF THE BUSINESS FELL SHARPLY EVEN THOUGH PRODUCTION GREW 18 PRIMARILY IN INDONESIA AND THE NORTH SEA BUT TEXACO'S BOTTOM LINE GOT SOME HELP FROM STRONG PROFIT MARGINS IN ITS US RETAIL MARKETING BUSINESS THE COMPANY SAID THAT GASOLINE SALES IN THE US GREW DURING THE FOURTH QUARTER FROM THE PREVIOUS YEAR'S LEVEL QUARTERLY EARNINGS FROM THE REFINING AND MARKETING SECTORS IN THE US AND OVERSEAS JUMPED SUBSTANTIALLY AMOCO SAID ITS FOURTHQUARTER NET EARNINGS OF 584 MILLION OR 117 A SHARE GREW BY 66 FROM 548 MILLION OR 110 A SHARE THE LATEST PERIOD'S NUMBERS INCLUDED A GAIN FROM THE SALE OF ITS STAKE IN A CANADIAN ENERGY COMPANY REVENUE EDGED ABOUT 2 HIGHER TO 738 BILLION NET EARNINGS FOR 1993 WERE REPORTED AT 182 BILLION OR 366 A SHARE AGAINST A LOSS OF 74 MILLION OR A NEGATIVE 15 CENTS A SHARE MR FULLER AMOCO CHAIRMAN SAID THAT THE COMPANY HAS CUT EXPENSES BY 600 MILLION OVER THE PAST 18 MONTHS AND IS CONTINUING TO SLASH COSTS TO HELP OFFSET THE LOWER CRUDE PRICES HELPING TO PROP UP THE BOTTOM LINE DURING THE FOURTH QUARTER WERE REFINING AND MARKETING OPERATIONS WHICH SHOWED EARNINGS JUMPING TO 259 MILLION FROM 202 MILLION EARNINGS FROM CHEMICAL OPERATIONS ALSO GREW AMOCO ALSO SAID YESTERDAY THAT OUTPUT FROM ITS WHITING IND REFINERY HAS BEEN REDUCED BECAUSE OF DAMAGE FROM THREE WEATHERRELATED FIRES WHICH FLARED UP ON SATURDAY AND SUNDAY THE COMPANY SAID IT IS ALLOCATING SUPPLIES TO CUSTOMERS UNITS AFFECTED BY THE FIRES SHOULD RETURN TO OPERATION WITHIN SEVERAL WEEKS THE COMPANY SAID ARCO REPORTED A NET LOSS OF 330 MILLION OR 206 A SHARE AGAINST EARNINGS OF 372 MILLION OR 230 A SHARE DURING THE SAME PERIOD A YEAR EARLIER REVENUE SLIPPED BY 44 TO 476 BILLION FROM 498 BILLION FOR 1993 ARCO REPORTED NET INCOME FELL 66 TO 269 MILLION OR 166 A SHARE FROM 801 MILLION OR 496 A SHARE IN 1992 THIS PAST YEAR'S QUARTERLY LOSS IS THE RESULT OF A BIG CHARGE TAKEN FOR THE RESTRUCTURING OF ITS OIL AND GAS OPERATIONS IN THE LOWER 48 STATES ARCO'S OIL PRODUCTION SLIPPED IN THE LOWER 48 PARTLY AS THE RESULT OF PROPERTY SALES OUTPUT IN ALASKA ALSO CONTINUED TO DECLINE ALTHOUGH PRODUCTION FROM THE NEW POINT MCINTYRE FIELD HELPED TO SLOW THE DECLINE THERE THE PRICE AT WHICH ARCO COULD SELL ITS US CRUDE DROPPED TO 989 A BARREL DURING THE FOURTHQUARTER FROM 1325 DURING THE SAME PERIOD A YEAR AGO BUT PROFITABILITY FROM THE COMPANY'S REFINING AND MARKETING SECTOR GREW WHILE EARNINGS FROM COAL OPERATIONS JUMPED PROFITABILITY AT THE CHEMICALS BUSINESSES ALSO INCREASED ARCO ALSO REPORTED YESTERDAY THAT ITS DIRECTORS HAD APPROVED A CAPITAL BUDGET OF 19 BILLION SLIGHTLY LESS THAN LAST YEAR'S BUDGET OF 21 BILLION ABOUT 60 OR 11 BILLION OF THIS YEAR'S OUTLAY WILL GO TO EXPLORATION AND PRODUCTION ANOTHER 430 MILLION WILL GO TO HELP REFINING AND MARKETING BUSINESSES COMPLY WITH CLEANAIR REGULATIONS THAT GO INTO EFFECT IN 1995 AND 1996 ASHLAND'S FISCAL FIRSTQUARTER PROFITABILITY JUMPED 132 TO 58 MILLION OR 90 CENTS A SHARE FROM 247 MILLION OR 41 CENTS A SHARE REVENUE WAS ALMOST FLAT AT 258 BILLION ASHLAND'S FISCAL YEAR ENDS SEPT 30 ASHLAND SAID ITS PROFITABILITY IS BASED LARGELY ON VERY LUCRATIVE REFINERY PROFIT MARGINS ACCORDING TO A SPOKESMAN THE COMPANY MADE A LOT OF MONEY BECAUSE OF TIGHT SUPPLIES OF LOWSULFUR DIESEL FUEL IN THE US DURING THE FOURTH QUARTER CLEANAIR REGULATIONS MANDATED THE USE OF THE LOWSULFUR VARIETY OF THE FUEL EARLY DURING THE QUARTER BUT MOST REFINERS HAD INADEQUATE SUPPLIES BUT THE SPOKESMAN SAID ASHLAND HAD RETOOLED ITS REFINERIES EARLIER IN THE YEAR TO MEET DEMAND FOR THAT FUEL WHICH IS USED MOSTLY BY TRUCKS EARNINGS FROM RETAIL GASOLINE SALES ALSO GREW JUMPING 19 TO 21 MILLION ASHLAND'S CHIEF EXECUTIVE OFFICER JOHN HALL SAID THAT THIS MOST RECENT FIRSTQUARTER REPRESENTS THE BEST PERFORMANCE SINCE THE SAME PERIOD DURING 1988 AMERADA HESS REPORTED A FOURTHQUARTER NET LOSS OF 1336 MILLION OR 145 A SHARE COMPARED WITH PROFIT OF 179 MILLION OR 21 CENTS A SHARE DURING THE SAME PERIOD OF 1992 REVENUE GREW 19 TO 165 BILLION FROM 162 BILLION THE RESULTS INCLUDE SPECIAL CHARGES RELATED TO CLOSING DOWN THE COMPANY'S REFINERY IN PURVIS MISS AND WRITING DOWN CERTAIN EXPLORATION AND PRODUCTION ASSETS EARNINGS FROM THIS SECTOR SLUMPED TO 79 MILLION FROM 1061 MILLION REFINING AND MARKETING OPERATIONS SHOWED A LOSS OF 111 MILLION FOR THE YEAR AMERADA REPORTED A NET LOSS OF 2682 MILLION OR 290 A SHARE COMPARED WITH NET INCOME OF 75 MILLION OR NINE CENTS A SHARE IN 1992 9401250096 940125 ABREAST OF THE MARKET INDUSTRIALS EASE IN WAKE OF RALLY BUT STRONGER ISSUES BLUNT LOSSES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES SLIPPED BUT CONTINUED STRENGTH IN MANY ECONOMICALLY SENSITIVE ISSUES BLUNTED THE LOSSES THE DOW JONES INDUSTRIAL AVERAGE EASED 169 OR 004 TO 391279 ITS FIRST CLOSE BELOW A NEW HIGH IN SIX SESSIONS BROADBASED INDEXES WHICH HAVE LAGGED BEHIND THE INDUSTRIALS OF LATE TUMBLED FURTHER THE STANDARD & POOR'S 500 STOCK INDEX SKIDDED 275 OR 058 TO 47197 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 137 OR 052 TO 26175 MEANWHILE ANALYSTS SAW CONCERN IN THE CONTINUED WEAKNESS OF THE DOW JONES UTILITIES AVERAGE SEEN AS A LEADING INDICATOR FOR THE STOCK MARKET BY SOME THE AVERAGE SLUMPED 264 OR 120 TO 21711 A SECOND STRAIGHT 52WEEK LOW VOLUME ON THE BIG BOARD SLIPPED TO 2969 MILLION SHARES FROM 3436 MILLION SHARES FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1206 TO 934 CYCLICAL ISSUES THE MAIN ENGINE IN THE MARKET'S RECENT STRENGTH CONTINUED TO HUM CATERPILLAR JUMPED 1 5/8 TO 100 1/4 DEERE RALLIED 1 5/8 TO 80 AND ALUMINUM CO OF AMERICA INCREASED 3/4 TO 75 5/8 THE DOW JONES TRANSPORTATION AVERAGE ADDED 451 OR 025 TO 181894 THE STRENGTH IN THE ECONOMICALLY SENSITIVE SECTOR TOGETHER WITH GAINS IN ENERGY ISSUES AND THE SHARES OF INTERNATIONAL BUSINESS MACHINES STABILIZED THE DOW JONES INDUSTRIAL AVERAGE IN THE FACE OF LOSSES ELSEWHERE STILL THE DOW FINISHED WELL OFF ITS BEST LEVELS OF THE SESSION WHEN IT WAS UP AROUND 20 POINTS IT WAS WHIPPED IN BOTH DIRECTIONS INTRADAY BY PROGRAM TRADING THE NASDAQ COMPOSITE INDEX WHICH SET A SECOND STRAIGHT RECORD FRIDAY SLUMPED 363 OR 046 TO 79065 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EASED 137 OR 028 TO 48337 IBM SHARES RALLIED 3 3/8 TO 58 5/8 BARRON'S MAGAZINE REPORTED THAT FIDELITY INVESTMENTS WAS AGGRESSIVELY BUYING THE STOCK LATE LAST YEAR IBM IN ARMONK NY IS SCHEDULED TO RELEASE ITS FOURTHQUARTER RESULTS LATE THIS MORNING IT IS EXPECTED TO REPORT ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR SHARES OF UNISYS ANOTHER TROUBLED COMPUTER COMPANY ADVANCED 3/4 TO 13 3/8 THE COMPANY IN BLUE BELL PA HAD A FOURTHQUARTER PROFIT OF 53 CENTS A SHARE ABOVE ANALYSTS' EXPECTATIONS OF 45 CENTS A SHARE A YEAR EARLIER UNISYS HAD PROFIT FROM OPERATIONS OF 43 CENTS A SHARE CATERPILLAR JUMPED AFTER MORGAN STANLEY & CO UPGRADED THE STOCK TO BUY FROM HOLD THE PEORIA ILL HEAVYEQUIPMENT MAKER'S SHARES CLIMBED 4 5/8 ON FRIDAY AFTER IT REPORTED SURPRISINGLY STRONG EARNINGS REYNOLDS METALS ADVANCED 2 3/8 TO 50 1/4 EVEN THOUGH IT REPORTED A LOSS FROM OPERATIONS OF 31 CENTS A SHARE COMPARED WITH YEARAGO PROFIT FROM OPERATIONS OF FIVE CENTS ALTHOUGH IT SAID LOWER INGOT PRICES HURT ITS EARNINGS THE RICHMOND VA COMPANY SAID DEMAND FROM WESTERN COUNTRIES CONTINUES TO GROW BELLSOUTH ADDED 3/8 TO 56 5/8 IT HAD FOURTHQUARTER EARNINGS OF 1 A SHARE EXCLUDING SEVERAL CHARGES UP FROM NET INCOME OF 72 CENTS A SHARE A YEAR AGO SOUTHWESTERN BELL LOST 1 1/8 TO 38 7/8 IT REPORTED FOURTHQUARTER EARNINGS OF 64 CENTS A SHARE UP FROM 58 CENTS A SHARE LAST YEAR BUT SOMEWHAT LOWER THAN EXPECTED STOCKS OF SEVERAL BIG BROKERAGE FIRMS SLIPPED EVEN AS MERRILL LYNCH'S FOURTHQUARTER PROFIT JUMPED 55 TO 153 A SHARE FROM 99 CENTS A SHARE A YEAR AGO MERRILL LYNCH LOST 3/4 TO 40 3/8 MORGAN STANLEY 1/4 TO 73 3/4 AND PAINEWEBBER 5/8 TO 25 3/4 DSC COMMUNICATIONS SKIDDED 3 1/8 TO 62 1/2 ON THE NASDAQ STOCK MARKET AFTER SALOMON BROTHERS REDUCED ITS RATING ON THE PLANO TEXAS COMPANY TO HOLD FROM BUY CITING CONCERN ABOUT INCREASING COMPETITION AMONG TELECOMMUNICATIONS EQUIPMENT MAKERS AFTER THE MARKET CLOSED THE COMPANY POSTED STRONGERTHANEXPECTED FOURTHQUARTER EARNINGS OF 51 CENTS A SHARE AMERICAN EXPRESS ADDED 5/8 TO 31 1/2 AFTER THE MARKET CLOSED THE NEW YORK FINANCIAL SERVICES COMPANY REPORTED A FOURTHQUARTER PROFIT OF 78 CENTS A SHARE UP FROM 15 CENTS A SHARE A YEAR AGO AND ANNOUNCED A LONGEXPECTED PLAN TO SPIN OFF ITS LEHMAN BROTHERS UNIT TEXACO ROSE 5/8 TO 66 1/8 AFTER THE WHITE PLAINS NY COMPANY REPORTED PROFIT FROM CONTINUING OPERATIONS OF 125 A SHARE UP FROM 122 A SHARE A YEAR AGO CHEVRON ROSE 1 1/4 TO 92 5/8 AFTER IT WAS UPGRADED TO ACCUMULATE FROM NEUTRAL BY A DEAN WITTER REYNOLDS ANALYST JB HUNT GAINED 1 TO 24 1/2 ON NASDAQ SMITH BARNEY SHEARSON ADDED THE LOWELL ARK TRUCKING COMPANY TO ITS FOCUS LIST THE BROKERAGE FIRM RATES JB HUNT BUY DAUPHIN DEPOSIT ADDED 3/4 TO 25 1/2 THE HARRISBURG PA COMPANY DISCLOSED PLANS TO BUY BACK UP TO ONE MILLION SHARES OF ITS COMMON STOCK WORRIED ABOUT THE DIVERGENCE BETWEEN ACTION IN THE DOW AND IN OTHER INDEXES MANY INVESTORS ARE SELLING SHARES TO LOCK IN SOME OF THEIR RECENT GAINS ANALYSTS SAID I CAN'T TELL YOU HOW MANY CONVERSATIONS I HAD WITH PEOPLE TODAY WHO ARE CONCERNED ABOUT THE NARROW LEADERSHIP SAID JOSEPH DEMARCO YESTERDAY MR DEMARCO HEADS EQUITY TRADING AT MARINVEST A UNIT OF HONGKONG & SHANGHAI BANK GAIL DUDACK MARKET STRATEGIST AT SG WARBURG & CO SAID A DIVERGENCE BETWEEN THE DOW JONES UTILITIES AVERAGE AND THE REST OF THE MARKET TYPICALLY LASTS ABOUT FIVE MONTHS BEFORE THE BROAD MARKET FOLLOWS THAT AVERAGE'S LEAD THE CONTINUING SPLIT SHE SAID IS NEARING THAT DURATION THAT IS ONE OF THE LARGEST WARNING SIGNS IT SAYS TO ME THAT YOU SHOULD BE ON THE LOOKOUT FOR WHAT COULD GO WRONG I'VE BEEN A BULL FOR A LONG TIME BUT I AM GETTING INCREASINGLY NEUTRAL ON THE MARKET MS DUDACK SAID 9401250095 940125 DIVIDEND NEWS FIRST SECURITY CORP FIRST SECURITY CORP SALT LAKE CITY A BANKHOLDING COMPANY INCREASED ITS QUARTERLY DIVIDEND ON COMMON STOCK TO 26 CENTS A SHARE FROM 23 CENTS A SHARE PAYABLE MARCH 7 TO HOLDERS OF RECORD FEB 18 9401250094 940125 VIACOM STOCK DROPS 46 AFTER PARAMOUNT MOVE NEW YORK VIACOM INC STOCK FELL 46 YESTERDAY FOLLOWING THE ENDORSEMENT BY PARAMOUNT COMMUNICATIONS INC'S BOARD OF VIACOM'S TAKEOVER BID VIACOM CLASS B NONVOTING SHARES FELL 175 TO 36 A SHARE ON THE AMERICAN STOCK EXCHANGE CUTTING THE VALUE OF VIACOM'S BID SLIGHTLY SHARES OF ITS BIDDING RIVAL QVC NETWORK INC FELL 1 TO 43 ON THE NASDAQ STOCK MARKET CUTTING THE VALUE OF ITS BID BY A COMPARABLE AMOUNT AS A RESULT VIACOM'S BID DROPPED TO ABOUT 97 BILLION AND QVC'S TO 101 BILLION THE PARAMOUNT BOARD ENDORSED THE VIACOM BID FRIDAY PARTLY BECAUSE IT OFFERS MORE CASH AND SOME PROTECTION AGAINST A DOWNTURN IN VIACOM'S STOCK AFTER THE ACQUISITION OF PARAMOUNT QVC IS EXPECTED TO MAKE A SLIGHT INCREASE IN ITS BID SOMETIME BEFORE JAN 31 BOTH BIDDERS ARE SUPPOSED TO SUBMIT THEIR BEST AND FINAL OFFERS BY FEB 1 9401250093 940125 GREEN POINT BANK REBUKED BY NEW YORK STATE AGENCY NEW YORK THE NEW YORK STATE BANKING DEPARTMENT REBUKED GREEN POINT SAVINGS BANK SAYING TOP EXECUTIVES WERE SEEKING TO ENRICH THEMSELVES IN A CONVERSION PLAN WHILE FAILING TO MAKE SURE THE BANK WAS VALUED FAIRLY THE DEPARTMENT ISSUED AN ORDER ALLOWING THE BANK TO PROCEED WITH ITS PLAN TO CONVERT FROM A MUTUAL SAVINGS BANK TO STOCK OWNERSHIP BUT IT IMPOSED A LENGTHY LIST OF STRINGENT REQUIREMENTS THE ORDER REQUIRES GREEN POINT TO APPOINT THREE NEW INDEPENDENT DIRECTORS TO MAKE SURE THE BANK COMPLIES WITH THE ORDER THE ORDER SAID THE BANK MUST DROP PLANS TO ISSUE STOCK GRANTS TO TRUSTEES AND OFFICERS IT REQUIRES GREEN POINT TO DEFER GRANTING ANY FUTURE STOCK OPTIONS FOR AT LEAST ONE YEAR AFTER THE CONVERSION AND TO MAKE SUCH OPTIONS SUBJECT TO APPROVAL BY AN INDEPENDENT COMPENSATION COMMITTEE THE PLAN HAD CALLED FOR GREEN POINT TO ISSUE AS MUCH AS 21 MILLION IN STOCK TO OFFICERS AND TRUSTEES GREEN POINT WHICH HAS 65 BILLION IN ASSETS AGREED TO THE TERMS IN A SETTLEMENT BUT DIDN'T ADMIT OR DENY THE DEPARTMENT'S FINDINGS A BANKING DEPARTMENT SPOKESWOMAN SAID THE FINDINGS WEREN'T DIRECTLY RELATED TO PROPOSED FEDERAL GUIDELINES SEEKING TO PREVENT INSIDERS FROM REAPING EXCESSIVE PROFITS IN CONVERSIONS OF MUTUAL SAVINGS BANKS TO STOCK OWNERSHIP 9401250092 940125 INTERNATIONAL BRAZIL'S BUSINESS ELITE WORRIES AS HEAD OF LEFTIST PARTY LEADS IN ELECTION POLLS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO ONE OF THE BESTSELLING ITEMS AT BOOKSHOPS HERE IS A 1994 DATEBOOK WITH A BIG RED STAR ON THE COVER AND INSCRIBED WITH THE SLOGAN PT 94 LULA PRESIDENT THIS COULD INDEED BE THE YEAR IN WHICH THE PRESIDENT OF THE LEFTIST WORKERS' PARTY LUIS INACIO LULA DA SILVA COMES TO POWER IN BRAZIL IF ELECTIONS WERE HELD TODAY POLLS SHOW HE WOULD BE THE HANDSDOWN WINNER SUCH A VICTORY PROBABLY WOULD BRING BRAZIL'S ALREADY SLOW PROGRAM OF FREEMARKET REFORMS TO A STANDSTILL THERE'S STILL A WAY TO GO BEFORE BUYERS CAN WRITE LULA ELECTED PRESIDENT ON THE NOV 15 PAGE OF THEIR DATEBOOKS IT'S UNCLEAR WHOM MR DA SILVA COMMONLY KNOWN HERE AS LULA WILL FACE AND THE VERY STRENGTH OF HIS CAMPAIGN MAKES IT LIKELY THAT A CONSENSUAL MODERATE ANTILULA CANDIDATE SUCH AS FINANCE MINISTER FERNANDO HENRIQUE CARDOSO WILL EMERGE BUT WITH MANY BRAZILIAN POLITICIANS DISCREDITED BY CORRUPTION SCANDALS THE COUNTRY LIVING WITH HYPERINFLATION AND PRESIDENT ITAMAR FRANCO'S GOVERNMENT SEEMINGLY INERT MR DA SILVA HAS PARLAYED BRAZIL'S DESIRE FOR CHANGE INTO A COMMANDING LEAD IN OPINION POLLS THE BEARDED GRAVELLY VOICED MR DA SILVA CUTS AN UNUSUAL FIGURE IN BRAZILIAN POLITICS AS A CHILD HE FLED THE IMPOVERISHED NORTHEAST ON THE BACK OF A TRUCK WITH HIS FAMILY QUIT SCHOOL AT 11 LOST A FINGER IN A FACTORY ACCIDENT AND ROSE TO PROMINENCE AS A MILITANT UNION LEADER BEFORE NARROWLY LOSING THE 1989 PRESIDENTIAL ELECTION THE PROSPECT OF HIS REACHING THE PRESIDENCY HAS MANY IN THE BUSINESS COMMUNITY HERE SCARED MR DA SILVA IS WARMING UP HIS STEAM TRAIN TO TAKE US IN THE DIRECTION OF ALBANIA WROTE BUSINESSMAN GILBERTO SOUZA GOMES JOB IN THE DAILY O GLOBO NEWSPAPER SPURRING THEIR FEARS IS THE WAY MR DA SILVA DEFENDS AN AGENDA THAT INCLUDES HEAVY STATE INTERVENTION IN THE ECONOMY AND A CONFRONTATIONAL ATTITUDE TOWARD FOREIGN BANKS MR DA SILVA IS UNAPOLOGETIC AN INVERSION IN PRIORITIES IS NEEDED IN THIS COUNTRY HE SAYS IN AN INTERVIEW IN HIS SAO PAULO HEADQUARTERS BRAZIL'S DEVELOPMENT MODEL AND ECONOMIC POLICY OVER THE PAST 30 YEARS WERE CONTRARY TO THE GENERAL INTEREST THEY CONCENTRATED WEALTH OUR PRIORITY IS TO END HUNGER IMPROVE HEALTH AND EDUCATION AND RESUME GROWTH MR DA SILVA LARGELY BLAMES BRAZIL'S SOCIAL AND ECONOMIC PROBLEMS ON THE FREEMARKET REFORMS INTRODUCED IN 1990 BY FERNANDO COLLOR DE MELLO WHO DEFEATED MR DA SILVA BUT RESIGNED IN 1992 TO WARD OFF HIS PROBABLE IMPEACHMENT ON CORRUPTION CHARGES MR DA SILVA SPELLED OUT HIS IDEAS ON THE FOLLOWING POINTS DURING THE HOURLONG INTERVIEW PRIVATIZATION WHILE HE ADMITS THAT MANY OF BRAZIL'S STATE COMPANIES ARE INEFFICIENT MR DA SILVA SAYS HE OPPOSES PRIVATIZATION HE ALSO SAYS STRATEGIC SECTORS SUCH AS TELECOMMUNICATIONS OIL AND AVIATION HAVE TO REMAIN IN STATE HANDS THOUGH HE DOESN'T RULE OUT PRIVATE AND FOREIGN CAPITAL ENTERING AS MINORITY PARTNERS HOWEVER HE SAYS CANCELING PRIVATIZATIONS THAT HAVE TAKEN PLACE SINCE 1990 WOULD BE A WASTE OF TIME FOREIGN DEBT MR DA SILVA WANTS TO PERSUADE FOREIGN GOVERNMENTS TO ALLOW BRAZIL TO SUSPEND DEBT PAYMENTS AND USE THOSE FUNDS TO INVEST IN RESEARCH EDUCATION AGRICULTURE AND JOB CREATION HE SAYS DEBTOR COUNTRIES SHOULD ORGANIZE THEMSELVES AND TURN THE DEBT ISSUE INTO A POLITICAL PROBLEM THAT'S NEGOTIATED AMONG GOVERNMENTS RATHER THAN WITH PRIVATE BANKS PRESIDENT CLINTON HE SAYS COULD BE MORE SENSITIVE TO BRAZILIAN SOCIAL PROBLEMS THAN A BANKER TRADE LIBERALIZATION MR DA SILVA SAYS LOWERING TRADE BARRIERS HAS LED TO HUGE JOB LOSSES AND HE FAVORS QUOTAS ON IMPORTS OF SUCH THINGS AS CARS COLLOR'S OPENING OF THE BORDERS DID MORE DAMAGE THAN A WAR HE SAYS FROM THE CONSUMER'S POINT OF VIEW THERE'S NO PROBLEM WITH OPENING OUR BORDERS BUT FROM THE STATE'S POINT OF VIEW WE HAVE TO WORRY ABOUT WHO WILL CREATE JOBS HERE NOT IN JAPAN ECONOMIC POLICY MR DA SILVA OPPOSES SHOCK THERAPY TO BRING DOWN BRAZIL'S ANNUAL INFLATION RATE OF 2600 AND WANTS TO REDUCE IT GRADUALLY BY CREATING LONGTERM INSTRUMENTS FOR THE COUNTRY'S INTERNAL DEBT THIS PROBABLY WOULD TRIGGER A CONFLICT WITH BANKS WHICH MAKE BIG PROFITS ROLLING OVER INTERNAL DEBT HE ALSO WANTS STRICT MEASURES AGAINST TAX EVADERS AND OLIGOPOLIES THAT MARK UP PRICES ABOVE INFLATION MANY BRAZILIANS CALL MR DA SILVA'S PROGRAM UNVIABLE AT A RECENT CONFERENCE IN NEW YORK BRAZILIAN BANKER IGOR CORNELSEN PREDICTED CHAOS IF HE WINS NOTING THAT MR DA SILVA IS POPULAR BUT THE IDEAS HE DEFENDS AREN'T POLITICAL SCIENTIST WALDER DE GOES SAYS I WOULDN'T BET 300 ON LULA PREDICTING HE WILL START LOSING GROUND WHEN HIS RIVALS APPEAR EVEN THOSE WHO BELIEVE MR DA SILVA CAN WIN SAY HE WILL HAVE TO MODERATE HIS IDEAS TO GARNER A MAJORITY BUT TO THOSE WHO PREDICT HE COULD BE LIKE ARGENTINE PRESIDENT CARLOS MENEM WHO CAMPAIGNED AS A POPULIST BUT ENACTED RADICAL FREEMARKET REFORMS MR LULA SAYS HE'S NO TURNCOAT I DON'T WANT TO HAVE ONE DISCOURSE TO WIN THE ELECTIONS AND THEN DO THE OPPOSITE HE SAYS IN THAT CASE I'D RATHER DIE ON INAUGURATION DAY 9401250091 940125 WHO'S NEWS SAS NAMES STENBERG AS ITS CHIEF EXECUTIVE STOCKHOLM SCANDINAVIAN AIRLINES SYSTEM NAMED JAN STENBERG CURRENTLY EXECUTIVE VICE PRESIDENT AT TELEFON AB LM ERICSSON AS CHIEF EXECUTIVE OFFICER MR STENBERG 54 YEARS OLD WILL TAKE THE CONTROLS OF THE TROUBLED SCANDINAVIAN AIRLINE APRIL 1 SAS'S OWNERSHIP IS EQUALLY DIVIDED AMONG SWEDEN NORWAY AND DENMARK HIS TASK WILL BE TO FIND A STRATEGY FOR AN AIRLINE STILL STRUGGLING FROM THE FAILED DIVERSIFICATION EFFORT LAUNCHED BY HIS PREDECESSOR THE FLAMBOYANT JAN CARLZON WHO LEFT LAST YEAR AFTER HIS PLAN FOR A MERGER WITH THREE OTHER EUROPEAN AIRLINES FAILED SAS HAS REPORTED A PRETAX LOSS EACH YEAR SINCE 1990 AND IS EXPECTED TO REPORT A LOSS FOR 1993 AS PREVIOUSLY ANNOUNCED JAN REINAS WHO ACTED AS INTERIM CHIEF EXECUTIVE WILL LEAVE TO TAKE THE HELM OF NORWEGIAN PAPER AND PULP CONCERN NORSKE SKOG AS THE SAS BOARD IS APPARENTLY COUNTING ON MR STENBERG'S EXPERIENCE AS AN INTERNATIONAL NEGOTIATOR TO HELP THE AIRLINE IN ITS SEARCH FOR TIGHTER LINKS TO THE EUROPEAN CONTINENT SAS ALREADY HAS A THREEWAY MARKETING ALLIANCE WITH SWISSAIR AND AUSTRIAN AIRLINES AND MR STENBERG HINTED THAT THIS GROUPING WILL BE A KEY TO HIS PLANS WE SHOULD DEEPEN THE CURRENT COOPERATIONS AND SHOULD SEEK NEW ONES HE SAID BUT IT'S OPEN TO QUESTION AS TO THE FORM AND TIMING OF SUCH MOVES 9401250090 940125 LETTERS TO THE EDITOR TRAUMA NOT FANTASY EUGENE SCALIA SHOULD WEIGH THE COSTS OF DOING NOTHING ABOUT CUMULATIVE TRAUMA DISORDERS CTDS BEFORE HE OBJECTS TO ERGONOMICS PROGRAMS OSHA TO BUSINESS SLOW DOWN YOU WORK TOO FAST EDITORIAL PAGE JAN 13 BY THE MOST CONSERVATIVE ESTIMATES MADE A DECADE AGO CTDS OF THE HAND AND ARM COST AT LEAST 20 BILLION A YEAR IN HEALTH CARE WORKERS COMPENSATION DISABILITY AND LOST WORKTIME COSTS THE REAL CURRENT FIGURE SURELY IS AT LEAST SEVERAL TIMES THAT AMOUNT ERGONOMIC PROGRAMS WHICH RESEARCHERS HAVE FOUND EFFECTIVE AT REDUCING THE RATE OF REPORTED AILMENTS COST FAR LESS WHETHER CTDS ARE REAL HEALTH CONDITIONS AS I BELIEVE OR THE COLLECTIVE FANTASY OF TENS OF MILLIONS OF MEN AND WOMEN IN DIVERSE INDUSTRIES AS MR SCALIA SUGGESTS BUSINESSES CERTAINLY THOSE IN HIGHRISK INDUSTRIES SUCH AS MEAT CUTTING AND DATA PROCESSING SHOULD BE WARY OF LAWYERS LIKE MR SCALIA WHO ADVISE THEM TO OPT FOR POLICIES THAT ARE EXPENSIVE AND NONPRODUCTIVE 9401250088 940125 JUSTICES REJECT AIRPORTFEE CHALLENGE GIVE UNIONS A VICTORY ON NLRB RULING BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT REJECTED AN AIRLINEINDUSTRY CHALLENGE TO WHAT CARRIERS CONSIDER EXCESSIVE FEES IMPOSED BY US AIRPORTS THE 71 RULING STRESSED THAT THE JUSTICES WOULD PREFER THAT THE TRANSPORTATION DEPARTMENT SETTLE DISPUTES OVER FEES FOR USING RUNWAYS AND PASSENGER TERMINALS BUT SINCE THE DEPARTMENT TRADITIONALLY HASN'T INTERVENED IN SUCH CLASHES THE HIGH COURT WENT AHEAD AND ANALYZED THE FEES CHARGED BY KENT COUNTY INTERNATIONAL AIRPORT IN GRAND RAPIDS MICH AND FOUND THEM REASONABLE FIGHTS OVER FEES HAVE BROKEN OUT ALL OVER THE COUNTRY LOS ANGELES INTERNATIONAL AIRPORT THE NATION'S THIRD LARGEST WAS NEARLY SHUT DOWN LATE LAST YEAR BEFORE CARRIERS REACHED A COMPROMISE WITH THE FACILITY AFTER THE BATTLE IN LOS ANGELES TRANSPORTATION SECRETARY FEDERICO PENA SAID HIS AGENCY WOULD GET MORE INVOLVED IN SETTLING SUCH CLASHES US AIRLINE COMPANIES MANY OF WHICH HAVE STRUGGLED IN RECENT YEARS PAID A TOTAL OF 34 BILLION IN AIRPORT FEES IN 1991 ROUGHLY 45 OF THEIR TOTAL OPERATING COSTS ACCORDING TO THE INDUSTRY'S FIGURES CARRIERS COMPLAIN THAT SOME AIRPORT FEES ARE OUT OF PROPORTION TO ACTUAL USE OF LANDING AND TERMINAL FACILITIES KENT COUNTY'S FEES WERE CHALLENGED BY SEVEN COMMERCIAL CARRIERS INCLUDING NORTHWEST AIRLINES A UNIT OF NORTHWEST AIRLINES CORP AMERICAN AIRLINES A UNIT OF AMR CORP AND UNITED AIRLINES A UNIT OF UAL CORP THE CUMULATIVE ANNUAL FEES AT ISSUE IN THE CASE AMOUNTED TO NEARLY 2 MILLION FOR 1988 THE AIRLINES CONTENDED THAT KENT COUNTY'S FEES WERE UNREASONABLE AND DISCRIMINATORY BECAUSE THEY WERE BASED ON COST ALLOCATIONS THAT FAVORED AIRPORT CONCESSIONS AND PRIVATEPLANE OWNERS OVER THE CARRIERS BUT THE SUPREME COURT SAID THE AIRLINES HADN'T PROVIDED SUFFICIENT EVIDENCE TO PROVE ANY UNFAIRNESS THE COURT CONCLUDED THAT KENT COUNTY'S FEES VIOLATED NEITHER A FEDERAL STATUTE REQUIRING REASONABLE LEVIES NOR THE CONSTITUTION'S PROTECTION OF INTERSTATE COMMERCE JUSTICE RUTH BADER GINSBURG WROTE THE MAJORITY OPINION JUSTICE CLARENCE THOMAS DISSENTED JUSTICE HARRY BLACKMUN DIDN'T PARTICIPATE IN THE CASE SEPARATELY THE HIGH COURT HANDED UNIONS AND WORKERS A VICTORY IN A UNANIMOUS LABORLAW RULING THE JUSTICES SAID THAT FIRED EMPLOYEES WHO LIE DURING ADMINISTRATIVE HEARINGS SHOULDN'T AUTOMATICALLY BE DENIED REINSTATEMENT OR BACK PAY WHILE EXPRESSING STRONG DISAPPROVAL OF SUCH DISHONESTY THE COURT DECLINED TO REVERSE A RULING BY THE NATIONAL LABOR RELATIONS BOARD THAT REINSTATED AN ALBUQUERQUE NM TRUCKINGTERMINAL WORKER WHO THE AGENCY DETERMINED HAD BEEN FIRED PRIMARILY BECAUSE OF HIS UNION ACTIVITIES THE NLRB FAVORED THE WORKER AND AWARDED HIM BACK PAY EVEN THOUGH HE HAD LIED TO AN ADMINISTRATIVE JUDGE ABOUT BEING LATE TO WORK AS A RESULT OF CAR TROUBLE THE CLINTON ADMINISTRATION DEFENDED THE NLRB'S RULING WHICH WAS AFFIRMED BY THE FEDERAL APPEALS COURT IN DENVER WRITING FOR THE HIGH COURT JUSTICE JOHN PAUL STEVENS SAID THE NLRB COULD HAVE ADOPTED A RULE PRECLUDING REINSTATEMENT BUT HE SAID THE AGENCY WASN'T OBLIGED TO DO SO HE SAID THAT THE JUDICIARY SHOULD RARELY SECONDGUESS THE JUDGMENT OF EXECUTIVEBRANCH AGENCIES GIVEN AUTHORITY BY CONGRESS TO MAKE SUCH POLICY DECISIONS CONCURRING IN THE COURT'S CONCLUSION JUSTICE ANTONIN SCALIA ADDED A SEPARATE OPINION SCOLDING THE NLRB FOR AN UNSEEMLY TOLERATION OF PERJURY JUSTICE SANDRA DAY O'CONNOR JOINED THE SCALIA OPINION IN ANOTHER DECISION STATES ESCAPED A SIZABLE TAX HEADACHE WHEN THE SUPREME COURT REJECTED A RAILROADINDUSTRY CHALLENGE TO OREGON'S PROPERTYTAX LAW THE CASE CONCERNED THE APPLICATION OF A 1976 FEDERAL LAW DESIGNED TO BOOST THE STRUGGLING INTERSTATERAILROAD INDUSTRY BY BANNING STATES FROM IMPOSING DISCRIMINATORY TAXES ON RAILROAD PROPERTY IN THE OREGON CASE THE FEDERAL APPEALS COURT IN SAN FRANCISCO HAD INTERPRETED THE LAW AS FORBIDDING STATES FROM GRANTING ANY PROPERTYTAX EXEMPTIONS TO COMMERCIAL OR INDUSTRIAL PROPERTY IF THEY DON'T SIMILARLY EXEMPT RAILROAD PROPERTY IF THE APPELLATECOURT RULING HAD BEEN UPHELD IT WOULD HAVE REQUIRED ALMOST EVERY STATE TO ELIMINATE CERTAIN EXEMPTIONS OR TO GRANT RAILROADS BROAD IMMUNITY FROM ORDINARY PROPERTY TAXES THE LATTER COURSE COULD HAVE COST STATES 100 MILLION ANNUALLY IN LOST REVENUE ACCORDING TO STATE TAX OFFICIALS BUT THE SUPREME COURT RULED 81 THAT THE APPELLATECOURT RULING WAS WRONG THE HIGH COURT SAID THAT AS LONG AS RAILROAD PROPERTY ISN'T SINGLED OUT FOR DISCRIMINATORY TREATMENT STATES MAY CONTINUE TO GRANT TRADITIONAL EXEMPTIONS TO OTHER TYPES OF PROPERTY OREGON'S TAX SYSTEM HAD BEEN CHALLENGED BY RAILROADCAR LEASING COMPANIES WHICH COMPLAINED THAT THE STATE GAVE EXEMPTIONS TO BUSINESS INVENTORY AND STANDING TIMBER AMONG OTHER CATEGORIES OF PROPERTY BUT NOT TO RAILROAD CARS OREGON VS ACF INDUSTRIES INC IN OTHER ACTIONS THE HIGH COURT DECLINED TO HEAR A PATENTLAW APPEAL BY INTEL CORP IN A CLOSELY WATCHED DISPUTE OVER COMPUTER CHIPS INTEL CLAIMED THAT A SMALL COMPETITOR ULSI SYSTEM TECHNOLOGY INC RELIED ON INFORMATION PATENTED BY INTEL TO MAKE A CLONE VERSION OF AN INTEL MATH COPROCESSOR WHICH SPEEDS UP CALCULATIONS IN PERSONAL COMPUTERS A FEDERAL APPEALS COURT IN WASHINGTON SAID THAT BECAUSE THE CLONE WAS FABRICATED FOR ULSI BY HEWLETTPACKARD CO WHICH HELD A LICENSE TO THE INTEL PATENT ULSI'S MARKETING OF THE CLONE WAS LEGITIMATE INTEL WARNED THAT UNDER THE LOWER COURT'S THEORY HIGHTECH COMPANIES WILL BE ABLE TO LAUNDER PATENTED PRODUCTS MERELY BY HAVING THEM FABRICATED BY THIRD COMPANIES THAT HAVE LEGITIMATE LICENSING AGREEMENTS WITH THE PATENT OWNERS INTEL CORP VS ULSI SYSTEM TECHNOLOGY INC LET STAND A 210 MILLION ANTITRUST AWARD AGAINST USX CORP'S FORMER BESSEMER & LAKE ERIE RAILROAD CO UNIT THE AWARD WHICH INCLUDES INTEREST STEMS FROM SUITS FILED BY A GROUP OF STEEL COMPANIES IN THE EARLY 1980S THE STEEL COMPANIES ACCUSED SEVERAL RAILROADS INCLUDING B&LE OF CONSPIRING TO PROP UP PRICES FOR TRANSPORTING IRON ORE TO STEEL MILLS FROM THE MID1950S THROUGH THE EARLY 1980S B&LE IS NOW OWNED BY CLOSELY HELD TRANSTAR INC OF MONROEVILLE PA USX OWNS A MINORITY INTEREST IN TRANSTAR AFTER A NUMBER OF SETTLEMENTS B&LE WAS THE ONLY DEFENDANT AGAINST WHOM CLAIMS WERE STILL PENDING USX SAID THAT LAST YEAR IT SET ASIDE 506 MILLION IN RESERVES TO COVER THE PAYMENT OF DAMAGES BESSEMER & LAKE ERIE RAILROAD CO VS WHEELINGPITTSBURG CORP 9401250087 940125 LETTERS TO THE EDITOR NEW LOW IN BASHING WORKING WOMEN IN RESPONSE TO MICHAEL K MEYERHOFF'S JAN 6 EDITORIALPAGE PIECE THE BEST DAY CARE A PARENT AT HOME IT IS EXCEEDINGLY TIRESOME TO HEAR YET AGAIN THAT I HAVE ACCORDING TO MR MEYERHOFF SACRIFICED THE WELLBEING OF MY CHILDREN FOR MERELY AN OPPORTUNITY FOR PARTICIPATION AND RECOGNITION IN THE WORKPLACE THIS HAS TO BE A NEW LOW IN WORKINGWOMANBASHING FOR MYSELF AND I DARE TO SAY THE MAJORITY OF OTHER WORKING WOMEN BUILDING AND MAINTAINING A STABLE ECONOMIC BASE FOR OUR FAMILIES AS SINGLE PARENTS OR AS PARTNERS IN A MARRIAGE IS CERTAINLY MORE MOTIVATION THAN THE TYPES OF RECOGNITION COMMONLY AVAILABLE IN THE WORKPLACE PARTICULARLY CONSIDERING THAT WOMEN GET LESS MONETARY RECOGNITION THAN MEN I AM ALSO PARTICULARLY OFFENDED BY MR MEYERHOFF'S COMMENT CONCERNING EARNING A FEW BUCKS TO MAKE ENDS MEET THE IMPLICATION THAT A WOMAN'S DESIRE FOR THE MODERN EQUIVALENT OF PIN MONEY COULD BE SATISFIED BY AN INCREASE IN PARTTIME WORK IS PATRONIZING BEYOND BELIEF AS IS THE BONE MR MEYERHOFF THROWS CONCERNING FATHERS' RESPONSIBILITY FOR RAISING CHILDREN AS TO MY WANTING ONLY TO SUSTAIN A LIFESTYLE THAT THEIR OWN PARENTS ONLY DREAMED ABOUT A GENERATION AGO MR MEYERHOFF HAS INADVERTENTLY I'M SURE HIT THE NAIL ON THE HEAD I AM A SECONDGENERATION AMERICAN AND IT WAS EXACTLY MY GRANDPARENTS' AND PARENTS' VISION THAT THROUGH HARD WORK EDUCATION AND THE AMERICAN OPPORTUNITY THAT THEIR CHILDREN COULD REAP THE REWARDS OF THEIR EFFORTS FOR THEMSELVES AND THEIR CHILDREN 9401250086 940125 LETTERS TO THE EDITOR WE ABHORRED INTRUSION DURING FINAL ILLNESS MARIANNE M JENNINGS'S JAN 3 EDITORIALPAGE ARTICLE A MOTHER TALKS TO MRS CLINTON RESONATED STRONGLY WITH ME I HAD A MERCIFULLY MORE BRIEF AND LESS INTENSE EXPOSURE TO GOVERNMENT BUREAUCRACY WHILE CARING FOR MY LATE HUSBAND A COLLEGE PROFESSOR WHO DIED OF A BRAIN TUMOR IN 1985 WHEN HE WAS 51 IT HAS MADE ME A FERVENT ADVOCATE FOR LESS GOVERNMENT INTRUSION ALWAYS AND A REPUBLICAN A SERIOUSLY ILL PERSON INCREASINGLY LOSES CONTROL OVER HIS LIFE HIS SURROUNDINGS HIMSELF TO CONSISTENTLY DEPRIVE HIM OF EVEN MORE CONTROL IS TO TORTURE THE PATIENT AND THE FAMILY TO THIS DAY I FEEL OUTRAGE AT THE UPSTATE COUNTY VISITING NURSES WHO WANTED TO MANAGE US AND AT THE ALBANY HOSPICE THAT WANTED TO DO THE SAME THING IN THE END WE THANKFULLY LEFT THE HOSPICE FIRED THE BUREAUCRACYENTRENCHED NURSES WROTE AND ADVERTISED A JOB DESCRIPTION OF EXACTLY THE NURSING CARE WE NEEDED AND SURVIVED AT HOME UNTIL HIS DEATH MUCH OF WHAT I HEAR AND READ OF THE CLINTON ADMINISTRATION'S HEALTH CARE PROPOSALS MAY BE SUMMED UP IN A STRUGGLE OVER WHO CONTROLS WHAT MY OWN SCARIFYING LEARNING EXPERIENCE PUTS ME ON THE SIDE OF PERSONAL FREEDOM I CAN ONLY HOPE THAT MANY AGREE 9401250084 940125 WHO'S NEWS DIGITAL PLANS ANOTHER REORGANIZATION EXPANDING ROLE OF SALES CHIEF LUCENTE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP STUNNED BY AN UNEXPECTEDLY LARGE LOSS AND REVENUE DECLINE IN THE LATEST QUARTER IS PLANNING ITS SECOND MAJOR REORGANIZATION IN LESS THAN A YEAR COMPANY INSIDERS SAID UNDER THE REORGANIZATION DIGITAL IS REDUCING THE INFLUENCE OF FOUR TOP EXECUTIVES WHO RUN GROUPS ORGANIZED AROUND MAJOR CUSTOMER INDUSTRIES SUCH AS BANKING AND FINANCE AND IS REASSIGNING FIVE EXECUTIVES TO RUN NEW UNITS ORGANIZED AROUND DIGITAL PRODUCTS THE NEW STRATEGIC BUSINESS UNITS WILL REPORT DIRECTLY TO DIGITAL'S SALES AND MARKETING CHIEF EDWARD E LUCENTE THE MOVES WIDEN MR LUCENTE'S INFLUENCE CONSOLIDATE HIS ROLE AS THE NO 2 EXECUTIVE AND DIMINISH THE CENTRAL ROLE OF THE INDUSTRY GROUPS WHICH WERE CREATED ONLY LAST YEAR BY THE CHIEF EXECUTIVE OFFICER ROBERT B PALMER ALTHOUGH MR LUCENTE'S INFLUENCE GROWS AS A RESULT OF THE MOVE DIGITAL INSIDERS SAY THE REORGANIZATION IS BEING DONE WITH THE FULL SUPPORT AND APPROVAL OF MR PALMER THE DATASTORAGE AND PERSONALCOMPUTER GROUPS AMONG THE FEW BRIGHT SPOT IN DIGITAL'S RESULTS AND THE HUGE COMPUTERSERVICES UNIT APPEAR UNAFFECTED BY THE MOVES BARRY F WILLMAN AN ANALYST WITH GOLDMAN SACHS & CO SAID DIGITAL IS STILL SEARCHING FOR A MORE EFFECTIVE STRUCTURE HE SAID THAT THE INDUSTRY BUSINESS UNITS WERE SUPPOSED TO STREAMLINE THE ORGANIZATION AND INCREASE CUSTOMER FOCUS BUT WHAT SEEMS TO HAVE EVOLVED INSTEAD WAS A LEVEL OF STRUCTURE THAT ACTUALLY IMPEDED SOME OF THE RESPONSIVENESS THEY HAD INTENDED TO CREATE HE ALSO SAID THAT SOME KEY RELATIONSHIPS WITHIN THE COMPANY WEREN'T WORKING SMOOTHLY BEFORE THE EXPECTED CHANGES WERE ANNOUNCED SHARES OF THE BIG MAYNARD MASS COMPUTER MAKER SLUMPED AGAIN YESTERDAY HITTING A NEW 52WEEK LOW THE STOCK CLOSED AT 3075 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AND WAS THE SECOND MOST ACTIVE ISSUE WITH 27 MILLION SHARES CHANGING HANDS ANALYSTS SAID INVESTORS WERE REACTING IN PART TO DIGITAL'S ANNOUNCEMENT AFTER THE CLOSE OF TRADING FRIDAY THAT IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AS MUCH AS 1 BILLION IN DEBT PREFERRED STOCK OR NEW SHARES A SPOKESMAN SAID THE COMPANY HAD NO IMMEDIATE PLANS TO ISSUE THE DEBT OR STOCK BUT JAY P STEVENS AN ANALYST WITH DEAN WITTER SAID DIGITAL IS LIKELY TO ISSUE MORE DEBT SOON THEIR RATING IS SLIPPING THEY'RE JUST HANGING IN WITH AN INVESTMENTGRADE RATING AND IT LOOKS LIKE THEY ARE GOING TO HAVE TO TAKE ANOTHER RESTRUCTURING RESERVE TO COVER YET ANOTHER ROUND OF WORK FORCE REDUCTIONS DIGITAL HAS ALREADY SAID IT WILL CUT ITS WORK FORCE BY 7000 BY JUNE 30 TO ABOUT 85000 PEOPLE THE LATEST MOVES ARE AN ABRUBT CHANGE OF COURSE FOR MR PALMER WHO IS UNDER PRESSURE FROM DIGITAL'S BOARD TO TURN THE COMPANY AROUND HE HAS BEEN SUCCESSFUL IN CUTTING COSTS BUT HASN'T BEEN ABLE TO IGNITE NEW GROWTH DESPITE DIGITAL'S STRONG PRODUCTS FOR ITS SECOND QUARTER ENDED JAN 1 DIGITAL LAST WEEK REPORTED A LOSS OF 721 MILLION OR 53 CENTS A SHARE ON A 12 REVENUE DECLINE TO 325 BILLION UNDER THE EXISTING CUSTOMER BUSINESSUNIT STRUCTURE DEVISED BY MR PALMER LAST YEAR MOST SALES EFFORTS WERE FOCUSED ON SPECIFIC BUSINESSES THEY INCLUDED DEFENSE AND MANUFACTURING UNDER FRANK MCCABE FINANCIAL PROFESSIONAL AND PUBLIC SERVICES UNDER BRUCE J RYAN CONSUMER AND PROCESS INDUSTRIES UNDER JOHN E KLEIN AND EDUCATION COMMUNICATIONS AND MEDIA HEADED BY PAUL G KOZLOWSKI A FIFTH UNIT WHICH FOCUSED ON HEALTHCARE INDUSTRIES IS BEING DISMANTLED AND ITS INDUSTRIES PHARMACEUTICALS HOSPITALS AND SO FORTH ARE BEING DISTRIBUTED TO THE OTHER UNITS AS REPORTED THE HEAD OF THAT UNIT WILLOW SHIRE WILL RESIGN AT THE END OF THIS MONTH NO OTHER RESIGNATIONS ARE EXPECTED AND NONE OF THE OTHER FOUR EXECUTIVES WERE AVAILABLE TO COMMENT A SPOKESMAN SAID FIVE OTHER MEN WILL GET SUBSTANTIAL NEW RESPONSIBILITIES IN THE LATEST CHANGES JESSE LIPCON ONE OF DIGITAL'S TOP ENGINEERS WILL RUN THE HUGE BUT AGING VAX COMPUTER LINE LARRY WALKER NETWORKING CHIEF WILL RUN AN EXPANDED UNIT WITH THE SAME FOCUS PETER SMITH VICE PRESIDENT FOR EUROPEAN SALES AND MARKETING TAKES OVER A PRINTER AND SUPPLIES BUSINESS BUD ENRIGHT PRODUCT MARKETING VICE PRESIDENT IS EXPECTED TO RUN A NEW SOFTWARE UNIT AND WILLI SHIH WHO NOW OVERSEES THE ALPHA PC PROGRAM WILL EXPAND HIS ROLE TO OVERSEE SALES EFFORTS BASED AROUND UNIX AND WINDOWS NT SOFTWARE OPERATING SYSTEMS THE DIGITAL SPOKESMAN DECLINED LAST NIGHT TO DISCUSS THE CHANGES IN DETAIL EXCEPT TO SAY THEY'RE STILL EVOLVING AND THE STRONG INDUSTRY FOCUS WILL CONTINUE EVEN THOUGH THE STRUCTURE MAY CHANGE HE INSISTED THE MOVES WERE UNDERTAKEN TO BALANCE THE SEPARATE PRODUCT AND INDUSTRY MARKETING EFFORTS NOT TO BOOST ONE AT THE EXPENSE OF ANOTHER IT'S ALL STILL BEING WORKED OUT HE SAID 9401250083 940125 TRACKING TRAVEL BY ASRA Q NOMANI SO MUCH FOR AIRPORT SECURITY ON A FEW HOURS' NOTICE THIS REPORTER FLEW TO GENEVA LAST MONTH ON LUFTHANSA GERMAN AIRLINES TO COVER WORLD TRADE NEGOTIATIONS FLYING INTO FRANKFURT FOR A CONNECTION AN AWFUL DETAIL BECAME OBVIOUS MY PASSPORT HAD EXPIRED SIX MONTHS EARLIER IN JUNE THE LUFTHANSA TICKETCOUNTER AGENT AT WASHINGTON'S NATIONAL AIRPORT HADN'T NOTICED THE EXPIRATION WHEN SHE CHECKED THE PASSPORT MAKING MY CONNECTION IN FRANKFURT THE LUFTHANSA AGENT ONLY NEEDED TO SEE A BOARDING PASS AS IS PROCEDURE IN GENEVA TWO PASSPORT INSPECTORS STOOD GUARD IN BOOTHS AT THE AIRPORT ONE SEEMED LIKE A YOUNG EAGERBEAVER THE OTHER DIDN'T I CHOSE THE LATTER HE OPENED THE PASSPORT CHECKED IT AND YES WAVED ME ON I MADE IT IN BUT WAS THIS AN INDICATOR OF AIRPORT SECURITY IT'S AMAZING THAT YOU WENT THROUGH TWO CHECKS AND NONE OF THEM FOUND OUT SAYS YISRAEL BOIM PRESIDENT OF AIR SECURITY INTERNATIONAL A HOUSTON CONSULTING FIRM IT IS TROUBLING BECAUSE THAT IS THE ONLY CONTROL THAT PEOPLE HAVE TODAY TO MAKE SURE THAT NEGATIVE ELEMENTS DON'T GO THROUGH THE COUNTRY PRIVATELY A LUFTHANSA OFFICIAL EXPLAINS THE OVERSIGHT AS HUMAN ERROR BUT ASSERTS PASSPORTS HAVE BECOME LESS SIGNIFICANT WITH THE OPENING OF EUROPEAN BORDERS AND WAIVING OF VISA RULES SWITZERLAND DOESN'T REQUIRE VISAS FOR US CITIZENS AND VICE VERSA THE INSPECTOR'S FAILURE TO CHALLENGE ME HOWEVER WAS LET US SAY AN ACCIDENT SAYS ROLAND MOSER A SWISS OFFICIAL IN WASHINGTON IT SEEMS AS IF HE JUST CLOSED BOTH EYES BUT THAT DOESN'T MEAN EXPIRED PASSPORTS ARE OK RICHARD KENNEY A US IMMIGRATION AND NATURALIZATION SERVICE SPOKESMAN SAYS A SWISS CITIZEN TRYING TO ENTER THE US WITH AN EXPIRED PASSPORT WOULDN'T BE SO LUCKY HE SAYS YOU WOULD HAVE BEEN EXCLUDED THE BEST ADVICE CHECK YOUR PASSPORT BEFORE HEADING ABROAD THIS WAS THE DILEMMA THE LUFTHANSA TICKET READ WASHINGTONFRANKFURTGENEVA WITH THE SAME ROUTING FOR THE RETURN BUT IN GENEVA PLANS CHANGED A ONEWAY TRAIN RIDE TO PRAGUE ENTERED THE ITINERARY PLUS THE IDEA OF STOPPING IN LONDON ON THE WAY BACK COULD THE RETURN TICKET BE CHANGED WITHOUT MUCH COST LOCAL LUFTHANSA TICKETING AGENTS COULDN'T SAY THEIR COMPUTERS WERE DOWN CHECK IN PRAGUE AN AGENT ADVISED NOTING IT SHOULDN'T COST MUCH MORE INDEED IN PRAGUE A LUFTHANSA AGENT EASILY TRANSFERRED THE TICKET TO BRITISH AIRWAYS SCRIBBLING THE INITIALS BA AT THE TOP BRITISH AIRWAYS IN TURN REISSUED A TICKET TO WASHINGTON FROM PRAGUE VIA LONDON THE EXTRA COST ONLY 109 EVEN WITH THIS DETOUR IN PRAGUE THE LESSON AT THE PASSENGER'S REQUEST AIRLINES WILL TRANSFER SOCALLED EXCURSION FARES FOR OVERSEAS TRAVEL TO EACH OTHER WITH SOMETHING REFERRED TO AS VOLUNTARY ENDORSEMENTS INVOLUNTARY ENDORSEMENTS HAPPEN WHEN A PASSENGER WANTS A TRANSFER TO ANOTHER AIRLINE BECAUSE OF SOMETHING LIKE A MECHANICAL FAILURE OR SCHEDULING DELAY BUSINESS TRAVELERS USUALLY OPT FOR THESE LASTMINUTE FARES WHICH ARE MORE EXPENSIVE THAN THE ADVANCEPURCHASE FARES POPULAR AMONG VACATIONERS THE BENEFIT IS THAT NEW ROUTINGS DON'T COST MUCH MORE IF ANYTHING NOTES JEFF WRIGHT BRITISH AIRWAYS' PRICING MANAGER IN THE US THE EXCURSION FARES DON'T CARRY ROUTE RESTRICTIONS THE COUP IN THIS SITUATION FREQUENTFLIER MILES FROM BOTH BRITISH AIRWAYS AND LUFTHANSA CAN BE TRANSFERRED TO USAIR IT'S A SIMPLE CONCEPT CHECKING YOUR VOICE MAIL WHEN YOU'RE AWAY FROM THE OFFICE BUT IT'S NOT SO SIMPLE OVERSEAS EVEN FROM AN OTHERWISE TECHNOLOGICALLY DEVELOPED PLACE LIKE THE GENEVA HILTON HOTEL ONE SOLUTION TONE GENERATORS THESE ELECTRONIC GIZMOS ABOUT THE SIZE OF A BEEPER ARE HIGHTECH COUSINS OF GADGETS THAT EMERGED IN THE 1970S THESE OFTEN CAME WITH ANSWERING MACHINES AS A WAY TO CHECK MESSAGES WHILE AWAY FROM THE HOME OR OFFICE PHONES MOSTLY USED ROTARY LINES AT THE TIME AND DIDN'T PICK UP TONE COMMANDS AS THEY DO TODAY TO RETRIEVE ANSWERINGMACHINE MESSAGES YOU PUT THE TONE GENERATOR AGAINST THE RECEIVER AND KEY INTO THE DEVICE THE APPROPRIATE COMMANDS TODAY MOST PHONES IN THE US USE TOUCHTONE LINES BUT THAT ISN'T SO OVERSEAS IT'S REALLY PROBLEMATIC SAYS JOE BRANCATELLI TRAVEL ADVISER AT TRAVEL HOLIDAY A MONTHLY MAGAZINE I TAKE MY BLACK BOX WITH ME WHEN I'M TRAVELING SOME ARE PROGRAMMABLE SO USERS CAN ENCODE THEM WITH FOR EXAMPLE LONGDISTANCE ACCESS NUMBERS ONE VETERAN USER IS SKEPTICAL NOTING THE DEVICE IS SOMETIMES A DUD AND DOESN'T SEND SIGNALS BUT EDSEL ECTOR A SALESMAN AT A RADIO SHACK STORE IN DOWNTOWN WASHINGTON EXTOLS THE VIRTUES OF THE TECHNOLOGY FOR TRAVELERS WE JUST HAD A GUY COME IN TODAY WHO WANTED TO BUY SIX OF THEM FOR HIS OFFICE BUT WE HAD RUN OUT OF THEM FOR THE JOB IT DOES THERE'S NOTHING TO COMPETE WITH IT IT CERTAINLY BEATS PUNCHING BUTTONS TO NO AVAIL SOME FASHION ADVICE FOR THE OVERSEAS TRAVELER THONG SANDALS ARE THE STANDARD FOOTWEAR IN THE WEIGHT ROOM AT THE SLAVIA GYMNASIUM'S FIT CLUB CLASSIC IN PRAGUE WHERE MANY HEALTH CLUBS PREFER THEM OVER SNEAKERS AN OFFICIAL AT THE RITZ IN LONDON KICKED OUT TWO VISITORS STOPPING FOR TEA AT THE HOTEL'S LOBBY RESTAURANT THE PALM COURT NO JEANS ALLOWED HE SAID 9401250082 940125 WHO'S NEWS CLAIBORNE OFFICIAL TO JOIN J CREW NEW YORK ROBERT BERNARD PRESIDENT OF LIZ CLAIBORNE INC'S INTERNATIONAL DIVISION RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF J CREW GROUP INC A PRIVATELY HELD APPAREL RETAILER MR BERNARD 43 YEARS OLD WHO HAS HELD VARIOUS SALES AND MARKETING POSITIONS AT CLAIBORNE SINCE 1985 SAID HE WILL JOIN NEW YORKBASED J CREW IN ABOUT TWO WEEKS HE SAID J CREW WHICH HAS ANNUAL SALES OF MORE THAN 700 MILLION WILL GIVE HIM A FANTASTIC OPPORTUNITY TO WORK WITH A GREAT RETAILER AND MANUFACTURER IN OUR INDUSTRY MR BERNARD FILLS A POSITION THAT HAD BEEN VACANT SINCE JULY 1993 WHEN ARNOLD COHEN LEFT J CREW TO BECOME CHIEF EXECUTIVE AT LONDON FOG AN OUTERWEAR MAKER MR BERNARD WILL REPORT TO ARTHUR CINADER J CREW'S CHAIRMAN AND CHIEF EXECUTIVE 9401250081 940125 GITANO PUT ON BLOCK AS COMPANY LOSES WALMART BUSINESS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GITANO GROUP INC'S DIRECTORS VOTED TO PUT THE COMPANY UP FOR SALE AFTER ONE OF ITS BIGGEST CUSTOMERS WALMART STORES INC REFUSED TO CONTINUE TO DO BUSINESS WITH THE APPAREL MARKETER WHICH RECENTLY PLEADED GUILTY TO VIOLATIONS OF US CUSTOMS LAWS LATE YESTERDAY GITANO SAID THAT IT RECEIVED NOTIFICATION THAT A PRINCIPAL CUSTOMER COULD NO LONGER DO BUSINESS WITH GITANO BECAUSE OF THE CUSTOMS VIOLATIONS GITANO DECLINED TO IDENTIFY THE RETAILER BUT A WALMART SPOKESWOMAN CONFIRMED THAT THAT COMPANY IS THE RETAILER IN QUESTION GITANO SAID THAT WALMART AND KMART CORP REPRESENTED ABOUT 75 OF GITANO'S SALES IN 1993 TRADING IN GITANO SHARES WAS HALTED PRIOR TO THE STATEMENT THE SHARES WERE QUOTED AT 2 ON VOLUME OF 219200 SHARES ON THE NEW YORK STOCK EXCHANGE IN BENTONVILLE ARK A WALMART SPOKESWOMAN SAID WALMART HAS A STRICT STANDARD FOR VENDOR PARTNERS REFERRING TO AN AGREEMENT THAT VENDORS ARE REQUIRED TO SIGN WHICH INCLUDES POLICIES REGARDING THE IMPORTATION OF MERCHANDISE SHE ADDED WE HAVE DROPPED OTHER VENDORS WHO WERE IN VIOLATION WITH OUR AGREEMENT AND WE HAVE NO OTHER CHOICE BUT TO DISCONTINUE BUSINESS WITH GITANO IT WAS A TOUGH DECISION FOR US BECAUSE GITANO HAS BEEN A BIG PART OF OUR BUSINESS AS REPORTED LAST DECEMBER GITANO AND THREE OF ITS FORMER TOP EXECUTIVES AGREED TO PLEAD GUILTY TO FELONY CHARGES IN CONNECTION WITH A SCHEME DESIGNED TO CIRCUMVENT IMPORTQUOTA RESTRICTIONS ON 276 MILLION OF BLOUSES IMPORTED BY THE COMPANY IN 1991 AND 1992 IN A STATEMENT YESTERDAY ROBERT E GREGORY JR GITANO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT IS UNFORTUNATE THAT THE EFFORTS OF THE NEW MANAGEMENT TEAM TO REBUILD THE COMPANY HAVE BEEN UNDERMINED BY THE EVENTS WHICH OCCURRED IN 1991 AND 1992 UNDER GITANO'S PRIOR MANAGEMENT AND WHICH DO NOT RELATE TO GITANO TODAY UNDER ITS CURRENT MANAGEMENT HE SAID THAT A SALE OF GITANO IS THE BEST MEANS TO SERVE THE INTERESTS OF OUR COMPANY'S CONSTITUENTS GITANO WHICH MARKETS BLUE JEANS AND BUDGET APPAREL TO MASS MERCHANDISERS HAD A LOSS OF 487 MILLION OR 305 A SHARE ON REVENUE OF 3019 MILLION IN THE FIRST NINE MONTHS OF LAST YEAR GITANO HAS BEEN LABORING TO REVIVE ITS FALTERING BUSINESS AFTER YEARS OF OVEREXPANSION AND MANUFACTURING PROBLEMS AFTER CLOSING CERTAIN DIVISIONS AND DOWNSIZING ITS BUSINESS GITANO ANNOUNCED LAST FALL THAT IT WOULD CEASE MANUFACTURING APPAREL INSTEAD GITANO PLANNED TO SELL ITS MARKETING SERVICES AND ITS GITANO LABEL TO RETAILERS WHO WOULD IN TURN BE RESPONSIBLE FOR MANUFACTURING THE MERCHANDISE THAT NEWS WAS INITIALLY MET WITH SKEPTICISM BY OFFICIALS FROM SEVERAL MASS MERCHANTS INCLUDING WALMART WHO SAID THAT THEY WOULDN'T NECESSARILY BE WILLING TO MANUFACTURE THEIR OWN GITANOLABEL APPAREL GITANO SAID IT IS IN THE PROCESS OF HIRING KURT SALMON ASSOCIATES APPAREL CONSULTANTS TO HELP IT FIND A BUYER MR GREGORY SAID THAT GITANO HOPES TO COMPLETE A SALE OF THE COMPANY AS SOON AS POSSIBLE TO AVOID ANY INTERRUPTION OF THE 500 MILLION IN RETAIL VOLUME THAT GITANO EXPECTS FOR 1994 MR GREGORY SAID THAT GITANO'S BRAND NAME AND ITS ORGANIZATION HOLD CONSIDERABLE VALUE AND SHOULD HELP THE COMPANY ATTRACT STRONG INTEREST FROM POTENTIAL PURCHASERS HE ADDED HOWEVER IN LIGHT OF CURRENT CIRCUMSTANCES IT IS UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE 130 MILLION GITANO OWES TO ITS SECURED LENDERS LAST NOVEMBER GITANO SAID IT EXPECTED ITS LOSS FOR THE YEAR 1993 TO RANGE FROM 55 MILLION TO 60 MILLION COMPARED WITH A 1992 LOSS OF 2379 MILLION REFLECTING THE CLOSING OR SALE OF SEVERAL OF ITS DIVISIONS GITANO'S THIRDQUARTER SALES DROPPED NEARLY 68 TO 761 MILLION DOWN FROM 2361 MILLION A YEAR EARLIER 9401250080 940125 BUSINESS BRIEF HONEYWELL INC SUBSIDIARY IN SOUTH AFRICA SOLD OFF IN '86 IS REACQUIRED HONEYWELL INC SAID IT REACQUIRED THE SUBSIDIARY IT SOLD IN 1986 WHEN IT DIVESTED ITSELF OF ITS SOUTH AFRICAN OPERATIONS IN OPPOSITION OF APARTHEID THE MINNEAPOLIS CONTROLS CONCERN SAID IT PURCHASED THE MARTECH BUSINESS OF MURRAY & ROBERTS A JOHANNESBERG ENGINEERING AND CONSTRUCTION FIRM CREATING HONEYWELL SOUTHERN AFRICA PTY LTD MARTECH DISTRIBUTES HONEYWELL SYSTEMS AND PRODUCTS IN SOUTH AFRICA AND OTHER SUBSAHARAN COUNTRIES TERMS WEREN'T DISCLOSED BUT IN AUGUST HONEYWELL ENTERED INTO AN OPTION PACT TO BUY BACK THE UNIT IN EXPECTATION OF AN INVITATION FROM THE AFRICAN NATIONAL CONGRESS FOR US COMPANIES TO REINVEST IN SOUTH AFRICA UNDER THAT PACT WHICH WAS TO EXPIRE NOV 1 1996 HONEYWELL HAD TO EXERCISE THE OPTION IF THE ANC CALLED FOR THE LIFTING OF SANCTIONS AGAINST SOUTH AFRICA AND IF HONEYWELL WAS SATISFIED THE PURCHASE WOULDN'T EFFECT ITS BUSINESS RELATIONSHIPS WITH US MUNICIPALITIES THAT RESTRICT SUPPLIERS' INVOLVEMENT IN SOUTH AFRICA 9401250079 940125 WHAT'S NEWS WORLDWIDE WILLIAM PERRY WAS NOMINATED BY CLINTON TO BE SECRETARY OF DEFENSE THE PRESIDENT NOMINATED THE DEPUTY DEFENSE SECRETARY TO SUCCEED ASPIN IN THE TOP PENTAGON JOB PERRY 66 A LOWKEY MATHEMATICIAN AND MILITARY TECHNOLOGIST WHO IS HELD IN HIGH REGARD ON CAPITOL HILL IS EXPECTED TO WIN SENATE CONFIRMATION EASILY HE LACKS EXTENSIVE FOREIGNPOLICY EXPERIENCE AND HIS VIEWS ARE STRONGEST ON THE NEED FOR AN ACTIVIST DEFENSE INDUSTRIAL POLICY HE TALKED YESTERDAY OF THE NEED TO REFORM THE SYSTEM OF BUYING WEAPONS AND OTHER GOODS BOBBY INMAN PROPOSED HAVING PERRY REPLACE HIM AS THE NOMINEE LAST WEEK WHEN INMAN WITHDREW HIS NAME PEOPLE CLOSE TO THE SITUATION SAID ABORTIONRIGHTS FORCES WON A PROCEDURAL VICTORY AS THE SUPREME COURT SAID THEY MAY USE THE FEDERAL RACKETEERING LAW AS A WEAPON AGAINST PROTESTERS WHO TRY TO SHUT DOWN ABORTION CLINICS THE UNANIMOUS RULING WILL ALLOW THE NATIONAL ORGANIZATION FOR WOMEN TO PROCEED WITH A CIVIL LAWSUIT ALLEGING THAT OPERATION RESCUE AND OTHER GROUPS ENGAGED IN A NATIONWIDE CONSPIRACY TO USE HARASSMENT AND VIOLENCE TO FORCE CLINICS TO CLOSE THE COURT'S DECISION COULD IMPERIL MILITANT ANTIABORTION GROUPS BECAUSE RICO ALLOWS PLAINTIFFS TO SEEK DAMAGES EQUAL TO TRIPLE THEIR ACTUAL HARM THE PRESIDENT WANTS TO SUBMIT A WELFAREOVERHAUL PROPOSAL TO CONGRESS QUICKLY MAYBE AS EARLY AS LATE FEBRUARY THE PRESIDENT WILL EMPHASIZE THE NEED FOR CHANGING THE WELFARE SYSTEM IN HIS STATE OF THE UNION ADDRESS TONIGHT HE ALSO WILL STRESS HEALTHCARE REFORM ANTICRIME MEASURES AND WORKER RETRAINING ABOUT 4 BILLION WILL BE REQUESTED IN CONGRESSIONAL APPROPRIATIONS TO HELP CALIFORNIA COPE WITH LAST WEEK'S EARTHQUAKE ACCORDING TO LAURA TYSON THE HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS CLINTON'S TOP ADVISER ON RUSSIA WARNED THAT ANY BACKSLIDING THERE COULD LEAD TO HYPERINFLATION AND POLITICAL CHAOS TALBOTT SAID THAT SLOWING THE PACE OF REFORM WILL NOT EASE THE SOCIAL PAIN OF ECONOMIC TRANSITION HIS WARNING CONTRASTED WITH HIS EARLIER SUGGESTION THAT RUSSIA NEEDED LESS SHOCK AND MORE THERAPY RUSSIA'S NEW ECONOMICS MINISTER LASHED OUT AT REFORMERS FOR REFUSING TO JOIN THE CABINET AND PREDICTED HIGH INFLATION IN JANUARY MEANWHILE YELTSIN DIDN'T ACCEPT FINANCE MINISTER FYODOROV'S RESIGNATION THE FUTURE OF EUROPE IS AT STAKE IN BOSNIA AND ONLY SWIFT RETALIATORY AIR STRIKES WILL END AGGRESSION BY THE WARRING FACTIONS THE UN COMMANDER IN THE FORMER YUGOSLAVIA SAID THE COMMANDER GEN JEAN COT IS BEING RECALLED BY UN CHIEF BOUTROSGHALI BECAUSE OF HIS PUBLIC COMMENTS CONCERNING THEIR DISPUTE OVER THE NEED FOR AIR STRIKES BOUTROSGHALI QUESTIONED NATO'S WILLINGNESS TO USE FORCE IN BOSNIA AND HE URGED MORE DIPLOMACY MEANWHILE THE US REJECTED A FRENCH SUGGESTION TO IMPOSE BORDERS ON THE WARRING FACTIONS CLINTON SAID THERE WERE LIMITS TO HOW MUCH OTHER NATIONS CAN DO MEDICAL PLANES EVACUATED TWO YOUNG BROTHERS HURT IN A SARAJEVO MORTAR ATTACK SEN PACKWOOD MUST TURN OVER HIS DIARIES TO THE SENATE ETHICS COMMITTEE WHICH IS INVESTIGATING ALLEGATIONS OF SEXUAL MISCONDUCT A FEDERAL JUDGE RULED THE JUDGE SAID THE PANEL WILL RESPECT THE OREGON REPUBLICAN'S EXPECTATIONS OF PRIVACY THE EPA WILL REQUIRE THAT NEW CARS AND TRUCKS INCLUDE A DEVICE THAT CAPTURES GASOLINE VAPORS THAT OTHERWISE WOULD ESCAPE INTO THE ATMOSPHERE DURING REFUELING THE DEVICE IS AN ENLARGED VERSION OF THE CHARCOALFILLED CANISTER REQUIRED ON CURRENTMODEL AUTOS JAPAN'S PRIME MINISTER SOUGHT TO SAVE HIS POLITICAL REFORM PACKAGE BY NEGOTIATING A COMPROMISE WITH OPPONENTS BUT PROSPECTS WERE DIM THAT ANY ACCORD COULD BE REACHED ON THE REFORMS THE NAVY INSPECTOR GENERAL'S OFFICE SAID THAT 133 MIDSHIPMEN MAY HAVE CHEATED ON AN ELECTRICALENGINEERING EXAM TAKEN IN 1992 AT THE NAVAL ACADEMY EIGHTYONE MIDSHIPMEN HAVE ADMITTED CHEATING ISRAEL RESUMED WASHINGTON PEACE TALKS WITH REPRESENTATIVES OF SYRIA LEBANON JORDAN AND THE PLO AMID UNUSUAL SECRECY THE PLO'S ARAFAT MADE HIS FIRST VISIT TO SAUDI ARABIA SINCE THE GULF WAR 9401250078 940125 LEISURE & ARTS ON SPORTS JIMMY'S 'BOYS MAKE HAY OF RICE & CO BY FREDERICK C KLEIN IRVING TEXAS JIMMY JOHNSON WHO COACHES THE DALLAS COWBOYS LIKES TO TALK ABOUT HIS TEAM AS A SERIES OF PIECES THAT WHEN ASSEMBLED COMPLETE A PUZZLE THE BURDEN OF SOLVING IT HOWEVER IS NOT HIS BUT OTHERS' THERE'S THE GUY WHO CAN THROW QUARTERBACK TROY AIKMAN AND THE GUYS WHO CAN CATCH MICHAEL IRVIN AND ALVIN HARPER THERE'S EMMITT SMITH WHO CAN RUN AND SOME VERY BIG GUYS TO BLOCK FOR HIM WHEN THE OTHER TEAM HAS THE BALL THERE ARE THE GUYS WHO CHASE AND TACKLE BUT TO HAVE WATCHED THE 'BOYS 3824 DEFEAT OF THE SAN FRANCISCO 49ERS HERE SUNDAY IN A SUPER BOWL SEMIFINAL A K A THE NATIONAL CONFERENCE CHAMPIONSHIP GAME WAS TO UNDERSTAND HOW NEATLY EVEN THEIR SIDE PIECES FIT TUCKED AWAY THERE FOR INSTANCE WAS DARRYL JOHNSTON THE FULLBACK WHO USUALLY SERVES AS AN ANONYMOUS SORT OF BEHINDTHELINE OFFENSIVE LINEMAN BLOCKING FOR THOSE SWIFTER THAN HE YET IN THE SECOND QUARTER WHILE THE ISSUE IN THE SOONTOBEONESIDED CONTEST STILL WAS IN DOUBT THERE WAS DARRYL SLIPPING UP THE MIDDLE FOR FOUR YARDS TO SCORE A TOUCHDOWN MAKING A NICE LITTLE RUN FOR A FIRST DOWN ON HIS TEAM'S NEXT TD DRIVE AND CATCHING A PASS AND CARRYING FOR ANOTHER FIRST DOWN ON THE NEXT DOING THAT OFFENSIVE STUFF WAS SPECIAL BECAUSE THEY DON'T LET ME HAVE THE BALL ALL THAT MUCH SAID THE 28YEAROLD WHO GRADUATED FIRST AMONG 290 IN HIS HIGHSCHOOL CLASS IN YOUNGSTOWN NY BEING IN THE SAME LINEUP WITH EMMITT MICHAEL AND ALVIN GIVES ME A CHANCE TO FOOL 'EM SOMETIMES THEY CAN'T EXACTLY SET THEIR DEFENSES FOR ME CAN THEY THE NEXT TEAM TO TRY TO SOLVE THE COWBOYS CONUNDRUM WILL BE THE BUFFALO BILLS IN THE SB PROPER ON SUNDAY NEXT IN ATLANTA THEY QUALIFIED EARLIER IN THE DAY BY BEATING JOE MONTANA AND THE KANSAS CITY CHIEFS 3013 ON THEIR HOME GROUNDS IN ORCHARD PARK NY YOU MAY RECALL THAT THE BILLS HAVE BOWLED IT BEFORE THE PAST THREE YEARS TO BE EXACT AND HAVE BEEN BOWLED OVER AS OFTEN BY MARGINS OF 1 13 AND 35 POINTS THE COWBOYS DID IT TO 'EM LAST YEAR 5217 AND OFF THEIR SUNDAY EFFORT WILL BE FAVORED TO DO IT AGAIN IF YOU WANT TO BACK THE BILLS INSIST ON SOME POINTS THIRTY OR SO SEEMS ABOUT RIGHT YES THE BILLS' SUNDAY WIN WAS IMPRESSIVE BUT THE COWBOYS' WAS MORE SO THE 49ERS CAME HERE BOASTING THE NATIONAL FOOTBALL LEAGUE'S BEST REGULARSEASON OFFENSE AND MOSTONESIDED POSTSEASON WIN A 443 SLAUGHTER OF THE NEW YORK GIANTS THE WEEK BEFORE THEY TOO WERE WELLSTOCKED WITH SPEEDY/SLIPPERY/ROUGH/TOUGH TYPES THE SPEEDIEST/SLIPPERIEST BEING JERRY RICE THE BEST WIDE RECEIVER EVER BUT THIS ONE WAS OVER A GOOD BIT BEFORE IT WAS OVER BY HALFTIME REALLY WHEN DALLAS LED 287 AFTER SCORING TOUCHDOWNS ON FOUR OF ITS FIVE BALL POSSESSIONS WHILE ITS CORNERBACKS KEVIN SMITH AND LARRY BROWN WERE CONTAINING RICE THE 'BOYS WOULD WIN IT EVEN THOUGH QUARTERBACK AIKMAN WOULD LEAVE THE GAME FOR GOOD EARLY IN THE THIRD QUARTER AFTER BEING KNEED IN THE HEAD BY 49ER LINEMAN DENNIS BROWN AND EMMITT SMITH THE LEAGUE'S AND GAME'S LEADING RUSHER WOULD BE RELIEVED WITH MOST OF THE LAST QUARTER REMAINING TO PROTECT AN IFFY SHOULDER I DON'T THINK ANYBODY IN A MILLION YEARS THOUGHT IT WOULD BE THIS TYPE OF BALLGAME THEY EXECUTED AGAINST US BOTH OFFENSIVELY AND DEFENSIVELY SAID GEORGE SEIFERT THE SAN FRANCISCO COACH I GUESS WHEN YOU'VE BEEN EXECUTED YOU KNOW IT SMITH'S BEST PLAY WAS A RECEPTION AN 11YARDER THAT SCORED THE TOUCHDOWN THAT PUT HIS TEAM AHEAD 217 IN QUARTER TWO HE SLIPPED OUT OF THE BACKFIELD CAUGHT AIKMAN'S PASS OVER THE MIDDLE AND WENT IN UNTOUCHED THEY FORGET ABOUT ME I GUESS HE LATER SMILED BUSY WATCHING DARRYL JOHNSTON PROBABLY AIKMAN WENT DOWN AND OUT WITH HIS TEAM LEADING 287 THE 49ERS QUICKLY CUT THE MARGIN TO TWO TOUCHDOWNS 2814 AND STIRRED A BIT OF APPREHENSION AMONG THE TEXAS STADIUM FULL HOUSE BY HOLDING THE HOME TEAM NOW QUARTERBACKED BY THE STORKY VETERAN BERNIE KOSAR TO BUT A YARD ON ITS FIRST TWO PLAYS ON THE DALLAS 19YARD LINE ON ITS NEXT POSSESSION BUT KOSAR GOT A FIRST DOWN WITH A 12YARD COMPLETION TO IRVIN AND FOUR PLAYS LATER HIT THE LEAPING HARPER WITH A SHORT PASS TO WHICH THE LATTER ADDED A LONG RUN FOR A 42YARD TOUCHDOWN AND THAT WAS THAT AT AGE 30 KOSAR WILL BE MAKING HIS FIRST SUPER BOWL TRIP AFTER TWICE BOWING OUT IN THE SEMIS WITH HIS FORMER TEAMMATES IN CLEVELAND JUST ABOUT EVERYBODY PROBABLY INCLUDING BERNIE WOULD BE HAPPIEST IF AIKMAN WERE HALE FOR THE BUFFALO GAME THAT SEEMED LIKELY ON SUNDAY EVEN THOUGH AIKMAN WAS TO SPEND SUNDAY NIGHT IN A HOSPITAL FOR OBSERVATION FOR A CONCUSSION HE'LL PROBABLY HAVE A HEADACHE FOR THE FIRST FEW DAYS THIS WEEK AND GET ANOTHER ONE THEREAFTER FROM ANSWERING SEVERAL THOUSAND TIMES BETWEEN TOMORROW AND SUNDAY THE QUESTION FROM THE PRESS ABOUT HOW HIS HEAD FEELS SO LOPSIDED WAS THE DALLAS TRIUMPH THAT MOST POSTGAME QUESTIONING CENTERED NOT ON THIS PLAY OR THAT BUT ON COACH JOHNSON'S SILLY MIDWEEK STATEMENT TO A LOCAL RADIO CALLIN SHOW GUARANTEEING A COWBOYS WIN JOHNSON SAID HE DID IT TO LOOSEN UP HIS PLAYERS WHOM HE PERCEIVED AS A BIT TIGHT EARLY IN THE WEEK BUT VARIOUS COWBOYS SAID THE DECLARATION MAINLY AMUSED THEM TIGHT IF YOU SAW US LAST WEEK YOU'D HAVE THOUGHT IT WAS A KINDERGARTEN CLASS LAUGHED EMMITT SMITH A VERY BIG/FAST/ROUGH/TOUGH KINDERGARTEN CLASS 9401250077 940125 MARKETSCAN HOLIDAY FRAGRANCE SALES SLUMPED BY KATHLEEN DEVENY SEX DIDN'T SELL THIS CHRISTMAS AT LEAST NOT AT MANY PERFUME COUNTERS HOLIDAY SALES OF MANY MASSMARKET WOMEN'S FRAGRANCES SLUMPED DURING THE CRITICAL FOURTH QUARTER WHEN PERFUME MARKETERS TYPICALLY MAKE 60 TO 80 OF THEIR ANNUAL SALES THE ONE HIT OF THE SEASON VANILLA FIELDS FROM THE COTY UNIT OF JOH A BENCKISER GMBH USED A DECIDEDLY WHOLESOME PITCH RATHER THAN IMAGES OF LOVERS EMBRACING ADS FOR THE NEW BRAND FEATURED A FIELD OF FLOWERS AND A SINGLE HUMMINGBIRD IT'S A NATURAL POSITIONING SAYS JERRY ABERNATHY PRESIDENT OF COTY THAT'S WHY WE DIDN'T GO WITH A TYPICAL GIRL USES FRAGRANCE GIRL GETS BOY' APPROACH ANOTHER ELEMENT IN VANILLA FIELDS' SUCCESS MAY BE ITS RELIANCE ON A BAKING INGREDIENT RATHER THAN A STRONG FLORAL NOTE MANY FRAGRANCES NOWADAYS INCLUDING EXCLAMATION BY COTY SMELL MORE LIKE FRUITS THAN FLOWERS ONE EXCEPTION THE 66YEAROLD TABU BRAND WHICH ITS MARKETERS SAY IS TYPICALLY FAVORED BY OLDER WOMEN MOST MARKETERS CONCEDE THAT INDUSTRY SALES HAVE BEEN HURT BY THE ECONOMY AS SHOPPERS TRADE DOWN TO SMALLER BOTTLES AND FIERCE PRICE COMPETITION AMONG RETAIL OUTLETS KEEPS PRICES LOW SALES OF WOMEN'S FRAGRANCES BY SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS THE OUTLETS THAT ACCOUNT FOR ABOUT TWOTHIRDS OF ALL FRAGRANCE SALES DROPPED 9 DURING THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE TRADITIONAL MASSMARKET PRODUCTS INCLUDING THE RESILIENT CHARLIE AND GLORIA VANDERBILT FRAGRANCES ALSO FACE MOUNTING COMPETITION FROM AGING DESIGNER FRAGRANCES SUCH AS RED BY GIORGIO MADE BY AVON PRODUCTS INC SUCH PRESTIGE FRAGRANCES WHICH MARKETERS SAY ARE SUPPOSED TO BE SOLD ONLY IN DEPARTMENT STORES END UP IN MASS MARKET OUTLETS AFTER BEING RESOLD OR ROUTED THERE BY DISTRIBUTORS 9401250076 940125 USJAPAN TRADE TALKS FAIL TO BREAK DEADLOCK WASHINGTON US AND JAPANESE NEGOTIATORS DIDN'T MAKE ANY HEADWAY IN THE FIRST DAY OF TWODAY TRADE NEGOTIATIONS US OFFICIALS SAID THE SOCALLED FRAMEWORK TALKS HAVE BEEN DEADLOCKED OVER US INSISTENCE THAT JAPAN AGREE TO TARGETS FOR INCREASING IMPORTS JAPANESE OFFICIALS HAVE RESISTED SUCH DEMANDS AS MANAGED TRADE AND ACCORDING TO US OFFICIALS THE POLITICAL TURMOIL IN JAPAN HAS MADE THE JAPANESE NEGOTIATORS MORE RESISTANT TO COMPROMISE ALTHOUGH THE TALKS HAD ORIGINALLY BEEN SCHEDULED TO LAST UNTIL TOMORROW US OFFICIALS SAID THEY NOW EXPECT THEM TO END TODAY FOR SOME TIME THE US NEGOTIATING TEAM HAS FIGURED IT WOULD NEED TO TRAVEL TO JAPAN NEXT WEEK FOR ANOTHER ROUND OF TALKS THE TWO SIDES WANT A TRADE DEAL IN TIME FOR A SUMMIT MEETING IN WASHINGTON ON FEB 11 BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA WE'RE GOING TO KEEP PRESSING THE JAPANESE GOVERNMENT TO TAKE ACTION TO HELP OVERCOME AN UNACCEPTABLY HIGH TRADE DEFICIT SAID COMMERCE SECRETARY RON BROWN WE HAVE GOT TO TAKE TOUGH AND AGGRESSIVE ACTION 9401250075 940125 BUSINESS BRIEF CLOROX CO EARNINGS REVENUE ROSE 13 FOR THE FISCAL 2ND QUARTER CLOROX CO BOOSTED BY NEW PRODUCTS SAID PROFIT ROSE 13 IN ITS FISCAL SECOND QUARTER ENDED DEC 31 THE EARNINGS OF 306 MILLION OR 57 CENTS A SHARE COMPARE WITH YEAREARLIER NET INCOME OF 272 MILLION OR 50 CENTS A SHARE REVENUE ROSE 13 TO 3708 MILLION FROM 3274 MILLION THE YEAR EARLIER FOR THE FIRST SIX MONTHS THE OAKLAND CALIF MAKER OF HOUSEHOLD PRODUCTS SAID PROFIT ROSE 37 TO 109 MILLION OR 201 A SHARE ON SALES OF 8206 MILLION FROM 718 MILLION OR 132 A SHARE ON SALES OF 722 MILLION THE YEAR BEFORE THE MOST RECENT SIXMONTH PERIOD INCLUDED A GAIN OF 321 MILLION OR 59 CENTS A SHARE ON SALE OF DISCONTINUED OPERATIONS THE COMPANY ATTRIBUTED THE IMPROVED QUARTERLY RESULTS PRIMARILY TO THE INCREASE IN SHIPMENTS DRIVEN BY NEW PRODUCTS AND GREATER OPERATING EFFICIENCIES NEW PRODUCTS INCLUDED LIQUIDPLUMR BUILDUP REMOVER TILEX SOAP SCUM REMOVER FORMULA 409 GLASS AND SURFACE CLEANER AND CLOROX TOILETBOWL CLEANSER AND AUTOMATIC TOILETBOWL CLEANER 9401250074 940125 BUSINESS BRIEF FORD MOTOR CO ABOUT 3600 TRUCKS BUSES ARE RECALLED IN TWO ACTIONS FORD MOTOR CO DETROIT SAID IT IS RECALLING A TOTAL OF ABOUT 3600 TRUCKS AND BUSES IN TWO SEPARATE ACTIONS THE FIRST RECALL INVOLVES 3300 1994MODEL FSERIES PICKUP TRUCKS WHOSE AIR BAGS MAY NOT INFLATE IN AN ACCIDENT THAT IS BECAUSE THE AIR BAG DIAGNOSTIC MODULES WERE INTENDED FOR OTHER VEHICLES IN THE SECOND ACTION FORD IS RECALLING ABOUT 300 1994MODEL E350 SINGLE REAR WHEEL VEHICLES EQUIPPED WITH SCHOOL BUS PREPARATION PACKAGES BECAUSE THE AMOUNT OF WEIGHT REQUIRED TO ENGAGE THE PARKING BRAKE VIOLATES FEDERAL SAFETY STANDARDS FORD SAID IT ISN'T AWARE OF ANY ACCIDENTS OR INJURIES RELATED TO THE RECALLS 9401250073 940125 BUSINESS BRIEF TRANS WORLD AIRLINES FARES FOR DOMESTIC TRAVEL IN SPRING ARE CUT UP TO 35 TRANS WORLD AIRLINES LAUNCHED A DOMESTIC FARE PROMOTION OFFERING DISCOUNTS OF UP TO 35 FOR TRAVEL THROUGH MIDMAY TWA BASED IN MOUNT KISCO NY SAID THE LOWERPRICED TICKETS WILL BE AVAILABLE FOR SALE STARTING TODAY AND WILL BE GOOD THROUGH MAY 15 FOR TRAVEL IN THE CONTINENTAL US HAWAII AND SAN JUAN IN A SEPARATE SMALLER PROMOTION TWA IS OFFERING LOWER FARES TO FLORIDA FROM NEW YORK PHILADELPHIA BOSTON AND WASHINGTON DC THE ROUNDTRIP FLORIDA FARES 198 MIDWEEK AND 258 ON WEEKENDS OFFER SAVINGS OF UP TO NEARLY 45 TWA SAID IT ISN'T CLEAR WHETHER OTHER AIRLINES WILL FOLLOW THE SALE TWA'S SALE SIGNALS THAT THE CARRIER WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION IN NOVEMBER IS MAKING A BID FOR MORE BUSINESS IN THE TRADITIONALLY SLACK PERIODS OF WINTER AND EARLY SPRING 9401250072 940125 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH PROPOSAL FILED TO RAISE RATES ON CERTAIN BUSINESS SERVICES AMERICAN TELEPHONE & TELEGRAPH CO FILED A PROPOSAL TO INCREASE RATES ABOUT 4 ON CERTAIN BUSINESS LONGDISTANCE AND 800 SERVICES AND A PROPOSAL TO RESTRUCTURE RATES FOR SMALL BUSINESSES THE RATE INCREASES WOULD GENERATE ABOUT 165 MILLION A YEAR IN ADDITIONAL REVENUE A COMPANY SPOKESWOMAN SAID THE INCREASES WOULD COVER MANY OF THE COMPANY'S DOMESTIC AND INTERNATIONAL BUSINESS SERVICES AT&T IN BASKING RIDGE NJ ALSO PROPOSED TO RESTRUCTURE RATES FOR DOMESTIC AND INTERNATIONAL BASIC LONGDISTANCE SERVICE FOR SMALL BUSINESSES SO IT CAN OFFER THOSE CUSTOMERS VOLUME DISCOUNTS RATE INCREASES ARE EFFECTIVE FRIDAY AND THE RESTRUCTURING IS EFFECTIVE MARCH 1 PENDING FEDERAL COMMUNICATIONS COMMISSION APPROVAL 9401250071 940125 RAWSTEEL OUTPUT FELL 119 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 119 LAST WEEK TO 1667000 TONS FROM 1892000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 59 FROM THE 1771000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 809 OF ITS CAPABILITY LAST WEEK COMPARED WITH 919 THE PREVIOUS WEEK AND 838 A YEAR AGO 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 9401250070 940125 BUSINESS BRIEF JEAN PHILIPPE FRAGRANCES INC COMPANY PLANS TO ACQUIRE CERTAIN PRODUCT TRADEMARKS JEAN PHILIPPE FRAGRANCES INC SIGNED A LETTER OF INTENT TO PURCHASE CERTAIN PRODUCTLINE TRADEMARKS FROM COSMETIQUES ET PARFUMS DE FRANCE ID IN A CASH AND STOCK TRANSACTION VALUED AT ABOUT 58 MILLION JEAN PHILIPPE IN NEW YORK WOULD BUY THE PARISBASED COMPANY'S PARFUMS MOLYNEUX AND PARFUMS WEIL LINES FOR 34 MILLION AND 200000 JEAN PHILIPPE COMMON SHARES IT ALSO INTENDS TO BUY THE PRODUCT LINES' INVENTORY AT COST AN ESTIMATED 3 MILLION A SPOKESMAN SAID JEAN PHILIPPE STOCK CLOSED AT 1125 A SHARE DOWN 25 CENTS IN TRADING ON THE NASDAQ STOCK MARKET THE TRADEMARKS COVER MODERATELY PRICED FRAGRANCES DISTRIBUTED IN MORE THAN 30 COUNTRIES THEY GENERATED ABOUT 13 MILLION IN SALES LAST YEAR JEAN PHILIPPE PLANS TO USE THE PRODUCT LINES TO EXPAND INTERNATIONALLY THROUGH ITS INTER PARFUMS UNIT CHAIRMAN JEAN MADAR SAID HE EXPECTS TO SEE BENEFITS OF ADDITIONAL SALES AND EARNINGS IN 1994 FROM THE PURCHASE 9401250069 940125 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 125 MILLION OF NOTES DUE FEB 3 1999 PRICED INITIALLY AT PAR TO YIELD 523 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 19 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE FEB 1 1999 PRICED AT PAR TO YIELD 518 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GENERAL MOTORS ACCEPTANCE CORP 300 MILLION OF NOTES DUE FEB 1 1999 PRICED AS 5625S AT 99879 TO YIELD 5653 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 625 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC GENERAL MOTORS ACCEPTANCE IS A UNIT OF GENERAL MOTORS CORP IMPERIAL CREDIT INDUSTRIES INC 90 MILLION OF SENIOR NOTES DUE JAN 15 2004 PRICED AS 975S AT 98437 TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC DEFLECTASHIELD CORP INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES AT 13 APIECE THROUGH COMANAGERS WILLIAM BLAIR & CO AND DAIN BOSWORTH INC VERTEX PHARMACEUTICALS INC THREE MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH UNDERWRITERS LED BY COWEN & CO AMERICAS INCOME TRUST INC INITIAL PUBLIC OFFERING OF 58 MILLION SHARES OFFERED AT 15 A SHARE THROUGH COMANAGERS LED BY PIPER JAFFRAY INC COLORADO SPRINGS COLO 1179 MILLION UTILITIESSYSTEM IMPROVEMENT AND REFUNDING REVENUE BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 523 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P AEGON NV NETHERLANDS 250 MILLION DUTCH GUILDERS OF 5125 EUROBONDS DUE FEB 23 1999 AT ISSUE PRICE 10025 VIA ABN AMRO BANK NV REOFFERED AT 995 TO YIELD 524 A MARGIN OF 15 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES 1 ASIA COMMERCIAL HOLDINGS LTD HONG KONG 58 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 175 NOTES DUE FEB 23 2000 AT PAR AND REDEEMABLE IN US DOLLARS VIA BANQUE PARIBAS SUISSE NOTES ARE CONVERTIBLE FROM FEB 23 1995 TO FEB 8 2000 AT EXPECTED 20 PREMIUM OVER CLOSING SHARE PRICE THURSDAY WHEN TERMS ARE TO BE FIXED FEES 1875 BANK OF ASIA PUBLIC CO CAYMAN ISLANDS BRANCH THAI PARENT 75 MILLION OF SUBORDINATED CONVERTIBLE EUROBONDS DUE FEB 9 2004 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD INDICATED COUPON 35 TO 4 CONVERTIBLE INTO ORDINARY PARENTCOMPANY SHARES AT INDICATED CONVERSION PREMIUM 10 TO 15 FROM MARCH 9 TO JAN 26 2004 YESTERDAY'S CLOSING SHARE PRICE WAS 59 THAI BAHT TERMS TO BE FIXED THURSDAY AFTER FIVE YEARS BONDS FACE MANDATORY CONVERSION IF SHARE PRICE EXCEEDS 140 OF CONVERSION PRICE GUARANTOR BANK OF ASIA PUBLIC CO FEES 25 DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 500 MILLION DUTCH GUILDERS OF 525 EUROBONDS DUE FEB 16 2000 AT ISSUE PRICE 10017 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9942 TO YIELD 5366 A MARGIN OF 10 BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN FEES 1 LKB BADENWUERTTEMBERG FINANCE NV GERMAN PARENT 750 MILLION MARKS OF 65 EUROBONDS DUE SEPT 15 2008 AT ISSUE PRICE 1032 VIA JP MORGAN GMBH REOFFERED AT 1006 TO YIELD 643 A MARGIN OF 67 BASIS POINTS OVER 6 GERMAN BUND OF SEPTEMBER 2003 BONDS TO TRADE INTERCHANGEABLY WITH 15 BILLION MARKS OF IDENTICAL BONDS OUTSTANDING NEW ISSUE SIZE 225 BILLION MARKS GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES 3 ONTARIO CANADIAN PROVINCE 125 BILLION CANADIAN DOLLARS OF 75 GLOBAL BONDS DUE FEB 7 2024 AT ISSUE AND REOFFER PRICE 9842 VIA GOLDMAN SACHS & CO NESBITT THOMSON LTD SCOTIA MCLEOD INC AND DAIWA EUROPE LTD BONDS YIELD 7635 A SPREAD OF 53 BASIS POINTS OVER CANADIANGOVERNMENT BOND OF 2023 PAYABLE SEMIANNUALLY FEES 045 RHEINISCHE HYPOTHEKENBANK AG GERMANY 100 MILLION MARKS OF REVERSECOUPON FLOATINGRATE NOTES DUE FEB 23 2004 AT ISSUE PRICE 102375 VIA COMMERZBANK AG ANNUAL COUPON 5625 FIRST TWO YEARS SEMIANNUAL COUPON FLAT AT SIXMONTH MARK LONDON INTERBANK OFFERED RATE FOR YEARS THREE TO SEVEN ANNUAL COUPON 7 LAST THREE YEARS FEES 25 ROTHSCHILDS CONTINUATION FINANCE LTD BRITISH PARENT 125 MILLION OF PERPETUAL 9 EUROBONDS AT ISSUE AND REOFFER PRICE 99989 VIA HOARE GOVETT SECURITIES LTD NM ROTHSCHILD & SONS LTD AND SALOMON BROTHERS INTERNATIONAL LTD BONDS HAVE YIELD SPREAD OF 240 BASIS POINTS OVER BRITISH GILT OF 2017 CALLABLE BETWEEN FEB 15 2004 AND FEB 15 2024 AT HIGHER PRICE OF PAR OR FLAT AT YIELD OF THENPREVAILING GILT THEREAFTER CALLABLE EVERY 15 YEARS AT PAR GUARANTOR ROTHSCHILDS CONTINUATION LTD FEES 075 SHOUGANG GRAND CONCORD LTD HONG KONG 100 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 15 NOTES DUE DEC 31 1998 AT PAR VIA YAMAICHI BANK SWITZERLAND LTD NOTES CONVERTIBLE FROM MARCH 21 TO NOV 30 1998 AT 10 PREMIUM OVER FRIDAY'S CLOSING SHARE PRICE WHEN TERMS WERE FIXED FEES 1625 STANDARD CREDIT CARD MASTER TRUST 1 SERIES 19941 SPECIALPURPOSE VEHICLE 798 MILLION OF GLOBAL CREDITCARD PARTICIPATION CERTIFICATES OR BONDS LEGALLY DUE MARCH 7 1999 VIA CITIBANK SECURED ON CREDITCARD RECEIVABLES ORIGINATED FROM CITIBANK SOUTH DAKOTA NA AND CITIBANK NEVADA CLASS A TRANCHE IS 750 MILLION OF 465 NOTES PRICED AT 99858 TO YIELD 470 A MARGIN OF 354 BASIS POINTS OVER THREEYEAR US TREASURY EXPECTED MATURITY FEB 7 1997 FEES 25 CLASS B TRANCHE IS 48 MILLION OF 485 NOTES PRICED AT 99871 TO YIELD 4896 A MARGIN OF 55 BASIS POINTS OVER THREEYEAR TREASURY EXPECTED MATURITY MARCH 7 1997 PAYABLE SEMIANNUALLY FEES 3 TREASURY CORP OF VICTORIA AUSTRALIAN AGENCY 200 MILLION AUSTRALIAN DOLLARS OF 675 EUROBONDS DUE FEB 28 2002 AT ISSUE PRICE 10118 VIA SWISS BANK CORP REOFFERED AT 9963 TO YIELD 681 A MARGIN OF 28 BASIS POINTS OVER INTERPOLATED AUSTRALIAN GOVERNMENTBOND YIELD CURVE OF NOVEMBER 2001 AND OCTOBER 2002 GUARANTOR STATE OF VICTORIA FEES 1875 UNION BANK OF FINLAND FINLAND 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 24 1997 AT ISSUE AND FIXED REOFFER PRICE 99945 VIA CHEMICAL INVESTMENT BANK LTD PAYABLE QUARTERLY AT 025 POINT OVER THREEMONTH DOLLAR LIBOR FEES 0125 9401250068 940125 BUSINESS BRIEF MEDEX INC PACKAGING DISTRIBUTION PACT SIGNED WITH CORDIS EUROPA MEDEX INC HILLIARD OHIO SAID ITS MEDEX MEDICAL INC UNIT SIGNED AN EXCLUSIVE PACKAGING AND DISTRIBUTION AGREEMENT WITH CORDIS EUROPA NV THE BRUSSELSBASED UNIT OF CORDIS CORP MIAMI THE MAKER AND DISTRIBUTOR OF DISPOSABLE MEDICAL PRODUCTS FOR CRITICAL AND ACUTE CARE ESTIMATES THAT THE AGREEMENT WHICH BECAME EFFECTIVE JAN 1 MAY RESULT IN SALES OF AS MUCH AS 30 MILLION OVER THE THREEYEAR TERM OF THE PACT MEDEX SAID THE AGREEMENT IS PART OF ITS STRATEGIC PLAN TO FORM ALLIANCES WITH OTHER LEADING MEDICALPRODUCTS COMPANIES UNDER TERMS MEDEX MEDICAL WILL PROVIDE CUSTOM PROCEDURE KITS FOR CARDIOLOGICAL AND RADIOLOGICAL DIAGNOSTIC PROCEDURES WHICH CORDIS EUROPA WILL MARKET AND DISTRIBUTE IN EUROPE AFRICA AND THE MIDDLE EAST THE COMPANY SAID THE KITS WILL CONTAIN PRODUCTS MANUFACTURED BY MEDEX AND CORDIS AS WELL AS OTHER COMPANIES CORDIS EUROPA OPERATES PRODUCTION FACILITIES IN THE NETHERLANDS AND SOUTHERN FRANCE THAT MAKE ANGIOGRAPHIC AND NEUROSCIENCE PRODUCTS ITS PARENT IS A MANUFACTURER AND MARKETER OF MEDICAL DEVICES 9401250067 940125 BUSINESS BRIEF AILEEN INC WOMEN'S APPAREL FIRM FILES FOR CHAPTER 11 PROTECTION AILEEN INC NEW YORK SAID IT FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS AILEEN SAID IT DECIDED TO SEEK RELIEF AFTER FAILING TO REACH AN AGREEMENT TO EXTEND A CREDIT LINE WITH ITS EXISTING LENDER THE WOMEN'S APPAREL MANUFACTURER SAID EFFORTS TO SECURE FINANCING FROM OTHER LENDERS WERE SCUTTLED IN PART BY A DOWNTURN IN FALL AND WINTER SALES THE COMPANY OPERATES 144 MANUFACTURERS' OUTLET RETAIL STORES IN 40 STATES THE BANKRUPTCY PETITION WHICH ALSO INCLUDES A SUBSIDIARY AILEEN STORES INC WAS FILED IN THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AILEEN SAID STERLING NATIONAL BANK & TRUST CO NEW YORK AGREED TO PROVIDE 45 MILLION OF DEBTORINPOSSESSION FINANCING FOR FISCAL 1993 ENDED OCT 30 ASSETS TOTALED ABOUT 39 MILLION AND LIABILITIES 15 MILLION AILEEN SAID IT REPORTED A FULLYEAR NET LOSS OF 4751000 OR 89 CENTS A SHARE AGAINST NET INCOME OF 1014000 OR 19 CENTS A SHARE THE PREVIOUS YEAR 9401250066 940125 INTERNATIONAL BRIEF MIRROR GROUP NEWSPAPERS PLC GROUP IS ORGANIZED TO BID FOR NEWSPAPER PUBLISHING MIRROR GROUP NEWSPAPERS PLC SAID IT FORMED A CONSORTIUM TO BID FOR NEWSPAPER PUBLISHING PLC THE COMPANY THAT OWNS THE INDEPENDENT AND INDEPENDENT ON SUNDAY TITLES IN A STATEMENT MIRROR GROUP IN LONDON SAID THE CONSORTIUM MADE UP OF ITSELF NEWSPAPER PUBLISHING MANAGEMENT AND EUROPEAN SHAREHOLDERS ALREADY OWNS ABOUT 47 OF THE COMPANY THE CONSORTIUM WILL MAKE A BID FOR THE REMAINING 53 MIRROR GROUP DIDN'T DISCLOSE ANY OF THE DETAILS OF ITS BID A REPORT IN THE SUNDAY TIMES SAID THE BID COULD BE BETWEEN 250 PENCE 373 AND 300 PENCE A SHARE VALUING THE GROUP AT 55 MILLION 82 MILLION TO 70 MILLION 9401250065 940125 BUSINESS BRIEF TIGER MANAGEMENT CORP GE UNIT TO JOIN INVESTMENT OF 225 MILLION IN FUND TIGER MANAGEMENT CORP AND GENERAL ELECTRIC CO'S GE INVESTMENTS AGREED TO MAKE A COMBINED 225 MILLION INVESTMENT IN TIGER MANAGEMENT'S TIGER INTERNATIONAL FUND NEITHER COMPANY WAS MORE SPECIFIC ABOUT THEIR RESPECTIVE INVESTMENTS IN THE 1 BILLION FUND THAT TARGETS ASIA AND OTHER EMERGING MARKETS GE INVESTMENTS ALSO WILL JOIN THE FUND'S INVESTMENT COMMITTEE AND MAKE PERSONNEL AVAILABLE IN HONG KONG AND ELSEWHERE TO HELP IN EVALUATING POTENTIAL INVESTMENTS TIGER MANAGEMENT A GLOBAL INVESTMENT FIRM MANAGES ABOUT 75 BILLION IN ASSETS GE INVESTMENTS MANAGES ABOUT 47 BILLION IN ASSETS INCLUDING MORE THAN 26 BILLION FROM THE GE PENSION TRUST 9401250064 940125 INTERNATIONAL BRIEF METALLGESELLSCHAFT LOSS FOR THE FIRST QUARTER IS SAID TO BE CONSIDERABLE' GERMAN METALS TRADING AND ENGINEERING CONCERN METALLGESELLSCHAFT AG SAID IT CAN'T YET QUANTIFY ITS LOSS FOR THE FIRST THREE MONTHS OF THE YEAR THAT BEGAN OCT 1 THAT IT WILL BE CONSIDERABLE ISN'T A SURPRISE BECAUSE OF TRANSACTIONS IN THE OILFUTURES MARKET A SPOKESMAN SAID THE GERMAN SUNDAY NEWSPAPER WELT AM SONNTAG REPORTED THAT THE LOSS WOULD BE AROUND THAT OF A YEAR EARLIER AND COULD BE ABOUT 400 MILLION MARKS 2283 MILLION WELT AM SONNTAG QUOTED WIELAND SCHNEIDER WHO RUNS THE FINANCE DEPARTMENT JUST BELOW THE MANAGEMENTBOARD LEVEL AS DESCRIBING THE RESULTS AS DISASTROUS THIS THURSDAY THE COMPANY'S SUPERVISORY BOARD IS TO RECEIVE A REPORT ON FIRSTQUARTER EARNINGS AND RESTRUCTURING EFFORTS FROM THE GROUP'S NEW CHAIRMAN KAJO NEUKIRCHEN 9401250063 940125 WHO'S NEWS NEWMONT GOLD CO NEWMONT GOLD CO DENVER MICHAEL G MORAN 51YEAROLD FORMER PROJECT MANAGER WITH BHP IRON ORE IN PERTH AUSTRALIA WAS NAMED VICE PRESIDENT ENGINEERING SERVICES OF THIS GOLDMINING CONCERN WHICH IS 901 OWNED BY NEWMONT MINING CORP MR MORAN SUCCEEDS JOHN DAVENPORT WHO RETIRED LAST AUGUST 9401250062 940125 BUSINESS BRIEF CAESARS WORLD INC GATEWAY CASINO PARTNERSHIP PICKED FOR ST LOUIS PROJECT GATEWAY CASINO CO A PARTNERSHIP CONTROLLED BY CAESARS WORLD INC LAS VEGAS AND CASINO MAGIC CORP WAS NAMED THE PREFERRED DEVELOPER FOR A DOCKSIDE CASINO COMPLEX AT LACLEDE'S LANDING IN ST LOUIS THE 210 MILLION COMPLEX CAESARS MAGIC CASINO WILL FEATURE A REPLICA RIVERBOAT CASINO HOTEL AND PARKING FACILITIES GATEWAY CASINO'S PROPOSAL OFFERED ST LOUIS 9 OF GAMBLING REVENUES INITIALLY AND AS MUCH AS 11 OF FUTURE REVENUES PLUS A SHARE OF CASINO PROFITS THE SELECTION OF THE PARTNERSHIP WAS MADE BY A ST LOUIS CITY COMMITTEE CASINO MAGIC IS BASED IN BAY ST LOUIS MISS 9401250061 940125 BUSINESS BRIEF FEDERAL PAPER BOARD CO EARNINGS FOR QUARTER YEAR FELL SHARPLY ON LOWER PRICES FEDERAL PAPER BOARD CO CITING LOWER PRICES AND SALES IN ITS MARKET PULP BUSINESS SAID FOURTHQUARTER NET INCOME FELL 47 EARNINGS FOR THE 16WEEK PERIOD ENDED JAN 1 WERE 79 MILLION OR 14 CENTS A SHARE COMPARED WITH 149 MILLION OR 31 CENTS A SHARE FOR THE 17WEEK PERIOD A YEAR EARLIER SALES FELL 9 TO 4137 MILLION FROM 4546 MILLION THE LATEST QUARTER INCLUDES A CHARGE OF 34 MILLION RELATED TO MILL MODERNIZATION JOHN R KENNEDY PRESIDENT SAID RESULTS WERE ABOUT AS EXPECTED CONSIDERING GENERAL ECONOMIC AND MARKET CONDITIONS FOR THE MONTVALE NJ PAPER CONCERN'S MAJOR PRODUCTS FOR THE YEAR THE COMPANY SAID NET FELL 77 TO 208 MILLION OR 34 CENTS A SHARE FROM 916 MILLION OR 204 CENTS A SHARE FOR THE 53 WEEKS ENDED JAN 2 1993 SALES FELL 5 TO 139 BILLION FROM 146 BILLION 9401250060 940125 INTERNATIONAL BRIEF SONY CORP PROFIT EXPECTED TO REMAIN WEAK FOR NEXT FISCAL YEAR SONY CORP EXPECTS EARNINGS TO REMAIN WEAK IN THE NEXT FISCAL YEAR EXECUTIVE DEPUTY PRESIDENT KEN IWAKI SAID A RECOVERY IN EARNINGS IS DEPENDENT ON THE JAPANESE ECONOMY AND GERMAN ECONOMY RECOVERING MR IWAKI SAID NEITHER COUNTRY HE SAID HAS SHOWN SIGNS OF HITTING THE BOTTOM EARNINGS AT THE MAJOR JAPANESE CONSUMERELECTRONICS MANUFACTURER HAVE BEEN UNDER PRESSURE FOR THE LAST SEVERAL YEARS DUE TO SATURATION OF ITS MAIN MARKETS AND MORE RECENTLY BECAUSE OF THE HIGH YEN A HIGH YEN MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND REDUCES THE YENBASED VALUE OF OVERSEAS SALES IN THE SIX MONTHS ENDED SEPT 30 1993 PRETAX PROFIT ROSE 34 TO 5665 BILLION YEN 5078 MILLION BUT 3235 BILLION YEN OF THAT AMOUNT WAS A RESULT OF SUCCESSFUL CURRENCY HEDGING SALES FOR THE SAME PERIOD DECLINED 95 ON THE YEAR TO 1767 TRILLION YEN WHILE OPERATING PROFIT FOR THE PERIOD FELL 45 TO 3749 BILLION YEN 9401250059 940125 BUSINESS BRIEF TRIBUNE CO MEDIA GIANT AGREES TO BUY PUBLISHER THOMAS C WRIGHT CHICAGO MEDIA GIANT TRIBUNE CO AGREED TO BUY THOMAS C WRIGHT INC A SMALL BUT FASTGROWING EDUCATIONAL PUBLISHER FOR 100 MILLION AS PART OF PLAN TO BECOME A MAJOR PLAYER IN THE EDUCATION AND TRAINING BUSINESS WRIGHT BASED IN BOTHELL WASH PRODUCES BOOKS AND OTHER EDUCATIONAL MATERIALS FOR CHILDREN OF GRADESCHOOL AGE WRIGHT HAD 1993 REVENUE OF JUST 34 MILLION BUT TRIBUNE IS BANKING ON THE SMALLER COMPANY TO CONTINUE ITS RAPID GROWTH WRIGHT HAS HAD REVENUE GROWTH OF ABOUT 22 IN EACH OF THE PAST THREE YEARS TRIBUNE SAID AND A SPOKESMAN SAID THAT GROWTH RATE IS EXPECTED TO CONTINUE FOR THE NEXT FIVE YEARS THEY HAVE HIGH PROFIT MARGINS A TRIBUNE SPOKESMAN SAID OF WRIGHT HE WOULDN'T BE MORE SPECIFIC ABOUT EARNINGS WRIGHT HAS 85 EMPLOYEES 9401250058 940125 INTERNATIONAL BRIEF DRESDNER BANK AG COURT ACTION IS CONSIDERED OVER SEARCHES OF TWO OFFICES GERMANY'S DRESDNER BANK AG SAID IT WILL CONSIDER COURT ACTION OVER SEARCHES OF ITS DUESSELDORF AND FRANKFURT OFFICES BY THE PROSECUTOR'S OFFICE AND TAX OFFICIALS ABOUT 40 GOVERNMENT OFFICIALS HAVE BEEN SEARCHING OFFICES SINCE JAN 11 ALLEGING THAT EMPLOYEES HELPED TRANSFER ILLEGAL FUNDS TO LUXEMBOURG IN A NEWS RELEASE DRESDNER BANK DESCRIBED TRANSACTIONS IN QUESTION AS IN COMPLETE ACCORD WITH TAX LAWS SAYING SUCH TRANSACTIONS OCCUR THOUSANDS OF TIMES DAILY IN THE GERMAN BANKING SYSTEM THE BANK CLAIMED THE INVESTIGATION IS USING BANK EMPLOYEES AS A PRETEXT TO OBTAIN ILLEGAL ACCESS TO INFORMATION ON AN UNKNOWN NUMBER OF CUSTOMERS IT ALSO CRITICIZED THE TACTICS USED BY THE INVESTIGATORS SAYING FOR INSTANCE THAT EMPLOYEES WERE THREATENED WITH FORCE SEVERAL TIMES 9401250057 940125 BUSINESS BRIEF MICROELECTRONICS & COMPUTER RESEARCH GROUP IS HIRED FOR US COMPUTER NETWORK MICROELECTRONICS & COMPUTER TECHNOLOGY CORP AN AUSTIN TEXAS RESEARCH CONSORTIUM SAID IT RECEIVED A 98 MILLION FEDERAL CONTRACT TO HELP DEVELOP A NATIONAL COMPUTER NETWORK FOR US MANUFACTURERS THE TWOYEAR CONTRACT FROM THE ADVANCED RESEARCH PROJECTS AGENCY AN ARM OF THE DEFENSE DEPARTMENT WILL ENABLE COMPANIES TO SWAP ONLINE INFORMATION WITH SUPPLIERS AND POTENTIAL CUSTOMERS MCC AS THE RESEARCH GROUP IS KNOWN WILL PROVIDE SOFTWARE TO RUN THE NETWORK INCLUDING SECURITY FUNCTIONS A DIRECTORY OF SERVICES AND A MECHANISM THAT WILL ALLOW COMPANIES TO SET UP LINES OF CREDIT AND ONLINE BILLING THE MCC WORK IS THE SECOND PHASE OF A GOVERNMENT PROJECT AIMED AT DEVELOPING NEW TECHNOLOGIES TO IMPROVE US MANUFACTURING CARNEGIE MELLON UNIVERSITY AND THE UNIVERSITY OF UTAH ARE WORKING AS SUBCONTRACTORS TO MCC ON THE EFFORT 9401250056 940125 BUSINESS BRIEF ROSS SYSTEMS INC FISCAL SECONDQUARTER LOSS STEMS FROM CONTRACT DELAYS ROSS SYSTEMS INC A MAKER OF COMPUTER CLIENTSERVER PRODUCTS REPORTED A LOSS OF 7 MILLION FOR ITS FISCAL SECOND QUARTER ON A 25 DROP IN SALES ATTRIBUTABLE TO UNEXPECTED DELAYS IN OBTAINING EXPECTED SOFTWARE LICENSING CONTRACTS THE LOSS OF 70 CENTS A SHARE FOR THE PERIOD ENDED DEC 31 COMPARES WITH NET INCOME OF 15 CENTS A SHARE OR 15 MILLION A YEAR EARLIER FOR THE REDWOOD CITY CALIF COMPANY THE CURRENT RESULTS INCLUDE CHARGES OF 59 MILLION FOR RESTRUCTURING AND INCREASING A RESERVE TO OFFSET SLOWED ACCOUNT COLLECTIONS SALES DROPPED TO 172 MILLION FROM 229 MILLION A YEAR EARLIER THE LOSS WAS EXPECTED BECAUSE THE COMPANY PREVIOUSLY HAD ANNOUNCED THAT THE CONTRACT DELAYS WOULD HURT QUARTERLY RESULTS 9401250055 940125 BUSINESS BRIEF CALIFORNIA FEDERAL BANK WIDER 4THPERIOD LOSS SEEN IMPROVING THE ODDS FOR SALE CALIFORNIA FEDERAL BANK REPORTED A WIDER LOSS FOR THE FOURTH QUARTER AS PROJECTED RESULTS THAT ANALYSTS SAID IMPROVE THE ODDS THAT THE THRIFT WILL BE SOLD THE LOSS OF 537 MILLION OR 222 A SHARE COMPARES WITH A LOSS OF 45 MILLION OR 540 A SHARE A YEAR AGO WHEN ADJUSTED FOR A 1FOR5 REVERSE STOCK SPLIT LAST YEAR FOR 1993 THE LOS ANGELES THRIFT HAD A LOSS OF 1455 MILLION OR 598 A SHARE COMPARED WITH A LOSS OF 973 MILLION OR 1640 A SHARE COUNTERING THE TREND AT MOST CALIFORNIA FINANCIAL INSTITUTIONS CALFED'S LOANLOSS CHARGES MORE THAN DOUBLED TO 462 MILLION FROM 208 MILLION IN THE YEARAGO PERIOD CALFED PRESIDENT AND CHIEF EXECUTIVE EDWARD HARSHFIELD WHO JOINED THE THRIFT IN SEPTEMBER IS PURSUING A HOLD AND FIX STRATEGY RECENTLY A PURCHASE OFFER BY GOLDEN WEST FINANCIAL CORP OAKLAND CALIF WAS SPURNED BUT SOME LARGE SHAREHOLDERS SAY THEY MAY BRING PRESSURE ON THE BOARD TO CONSIDER SELLING THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CALFED CLOSED AT 13875 DOWN 625 CENTS 9401250054 940125 BUSINESS BRIEF BELLSOUTH CORP SPRINT GTE JOIN PROJECT FOR NORTH CAROLINA NETWORK BELLSOUTH CORP OF ATLANTA SAID IT WILL JOIN TWO OTHER COMPANIES IN LAUNCHING A 160 MILLION HIGHSPEED NETWORK TO TRANSMIT VOICE DATA AND VIDEO IMAGES IN NORTH CAROLINA LATER THIS YEAR BELLSOUTH SAID THE THREEYEAR PROJECT WHICH IS SCHEDULED TO BEGIN OPERATIONS IN AUGUST WILL CONNECT USERS TO INFORMATION FROM 106 SITES IN NORTH CAROLINA BELLSOUTH SAID IT WILL INVEST 69 MILLION IN THE PROJECT SPRINT/CAROLINA TELEPHONE A UNIT OF SPRINT CORP OF KANSAS CITY MO WILL CONTRIBUTE 60 MILLION AND GTE CORP OF STAMFORD CONN WILL INVEST 30 MILLION A NORTH CAROLINA STATE SPOKESMAN SAID THE SYSTEM WILL USE ADVANCED FIBEROPTIC TRANSMISSION GEAR CALLED SYNCHRONOUS OPTICAL NETWORK A BELLSOUTH SPOKESMAN SAID THE SYSTEM WILL ALLOW A USER TO TRANSMIT A 33VOLUME ENCYLOPEDIA SET IN 46 SECONDS COMPARED WITH 13 HOURS REQUIRED USING TECHNOLOGY AVAILABLE LAST YEAR 9401250053 940125 BUSINESS BRIEF BRINKER INTERNATIONAL INC AGREEMENT IS SET TO ACQUIRE ON THE BORDER IN STOCK DEAL BRINKER INTERNATIONAL INC SAID IT AGREED TO ACQUIRE DALLASBASED ON THE BORDER CAFES INC FOR ABOUT 327 MILLION IN BRINKER COMMON SHARES STEVEN FENSTERMACHER CHIEF EXECUTIVE OFFICER OF ON THE BORDER WILL CONTINUE TO DIRECT THE TEXMEX RESTAURANT CHAIN'S OPERATIONS AS A VICE PRESIDENT OF BRINKER ACCORDING TO DEBRA SMITHART BRINKER'S CHIEF FINANCIAL OFFICER SHE ADDED THAT BRINKER PLANS TO EXPAND THE 21UNIT CHAIN BRINKER OPERATES MORE THAN 400 RESTAURANTS INCLUDING THE CHILI'S GRADY'S AMERICAN GRILL ROMANO'S MACARONI GRILL AND SPAGGEDDIES ITALIAN CHAINS BRINKER CLOSED YESTERDAY AT 43625 A SHARE DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON THE BORDER CLOSED AT 725 A SHARE UP 50 CENTS IN TRADING ON THE NASDAQ STOCK MARKET BRINKER SAID IT EXPECTS TO COMPLETE THE ACQUISITION IN MAY SUBJECT TO CERTAIN CONDITIONS AND TO THE APPROVAL OF ON THE BORDER SHAREHOLDERS 9401250052 940125 BUSINESS BRIEF UNISYS CORP FOURTHPERIOD NET FALLS 15 ON SLUGGISH SALES OVERSEAS UNISYS CORP CITING WEAK COMPUTER SALES OVERSEAS PARTIALLY OFFSET BY GAINS IN THE US SAID FOURTHQUARTER NET INCOME SLIPPED 15 TO 1177 MILLION OR 53 CENTS A SHARE FROM 1392 MILLION OR 66 CENTS A SHARE THE YEARAGO QUARTER INCLUDED A ONETIME GAIN OF 38 MILLION OR 23 CENTS A SHARE FROM AN OPERATING LOSS CARRYFORWARD REVENUE FOR THE QUARTER FELL 69 TO 21 BILLION FROM 226 BILLION BUT THE BLUE BELL PA COMPANY SAID ITS FOURTHQUARTER ORDERS SHOWED GOOD GROWTH INCLUDING THE STRONGEST GAINS IN ITS US COMMERCIAL BUSINESS IN FIVE YEARS FOR THE YEAR UNISYS'S NET INCOME ROSE 57 TO 5654 MILLION OR 269 A SHARE FROM 3612 MILLION OR 146 A SHARE THE 1993 RESULTS INCLUDED A GAIN OF 2302 MILLION OR 139 A SHARE FROM ACCOUNTING CHANGES AND A CHARGE OF 264 MILLION OR 16 CENTS A SHARE FROM A LEGAL SETTLEMENT THE 1992 RESULTS INCLUDED A GAIN OF 65 MILLION OR 40 CENTS A SHARE FROM AN OPERATING LOSS CARRYFORWARD REVENUE FOR THE YEAR SLID 8 TO 774 BILLION FROM 842 BILLION UNISYS'S STOCK ROSE 75 CENTS TO 13375 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING AFTER HEAVY CUTS TO ITS DEBT BURDEN UNISYS SAID ITS NET DEBTTOCAPITAL RATIO IS ABOUT 29 DOWN FROM A 1991 PEAK OF MORE THAN 60 UNISYS SAID IT EXPECTS SLIGHTLY HIGHER REVENUE IN 1994 WITH MODEST IMPROVEMENTS IN ITS EUROPEAN AND JAPANESE MARKETS LATER IN THE YEAR 9401250051 940125 NYNEX AND BELLSOUTH REPORT BIG LOSSES NEW YORK FIRM TO CUT WORK FORCE 20 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NYNEX CORP SAID IT WILL SLASH ITS WORK FORCE BY 16800 OR MORE THAN 20 OVER THE NEXT THREE YEARS AND TAKE A 16 BILLION CHARGE RESULTING IN RECORD LOSSES FOR THE FOURTH QUARTER AND THE YEAR SEPARATELY BELLSOUTH CORP REPORTED A LOSS OF 276 MILLION FOR THE QUARTER REFLECTING ITS PREVIOUSLY ANNOUNCED PLANS TO CUT 10200 JOBS BY THE END OF 1996 AND RESTRUCTURE CERTAIN OPERATIONS SOUTHWESTERN BELL CORP MEANWHILE REPORTED RECORD EARNINGS FOR THE QUARTER NYNEX'S MOVE FOLLOWS THAT OF SEVERAL OTHER BABY BELL COMPANIES THAT ARE REDUCING THEIR WORK FORCES MAKING MASSIVE INVESTMENTS IN HIGHSPEED DATA AND VOICE NETWORKS AND GEARING UP TO FIGHT OFF AGGRESSIVE TELEPHONESERVICE COMPETITORS FOR THE FOURTH QUARTER NYNEX REPORTED A LOSS OF 124 BILLION COMPARED WITH PROFIT OF 3242 MILLION A YEAR BEFORE WITHOUT THE HUGE CHARGE NYNEX WOULD HAVE STILL POSTED LOWER PROFIT OF 2655 MILLION OR 64 CENTS A SHARE WE DID A LITTLE WORSE IN THE QUARTER THAN WE EXPECTED SAID IVAN SEIDENBERG VICE CHAIRMAN OF NYNEX NOT COUNTING THE CHARGE OPERATING EXPENSES ROSE 56 TO 285 BILLION FROM 270 BILLION REFLECTING STEEPER MARKETING COSTS AND ADDED EXPENSES DUE TO WINTER STORMS PREVIOUS REPORTS HAD SUGGESTED THAT NYNEX HAD BEEN WEIGHING PLANS TO CUT 22000 JOBS TO REDUCE ITS PAYROLL THE FATTEST AMONG REGIONAL PHONE COMPANIES AS IT BRACES FOR COMPETITION IN THE LUCRATIVE NEW YORK MARKET THE 16 BILLION CHARGE COMPRISES 700 MILLION FOR SEVERANCE ABOUT 400 MILLION FOR REENGINEERING TO CONSOLIDATE OPERATIONS AND TRAIN WORKERS 270 MILLION TO REFLECT THE COMPANY'S EXIT FROM INFORMATION PRODUCTS AND SERVICES OPERATIONS AND 200 MILLION FOR ACCOUNTING CHANGES THIS IS A SIGNIFICANT STEP SAID WILLIAM C FERGUSON CHAIRMAN AND CHIEF EXECUTIVE OF NYNEX THE COMPANY IS INTENT ON DRIVING COSTS DOWN IN AN INCREASINGLY COMPETITIVE MARKET AS PAINFUL AS THESE STEPS ARE WE HAVE TO DO THIS TO BE A VIABLE COMPANY GOING FORWARD NYNEX FACES ONE OF THE MOST FORMIDABLE ENVIRONMENTS AMONG REGIONAL PHONE COMPANIES A SLOWLY REVIVING NEW YORKNEW ENGLAND ECONOMY TOUGH REGULATORS AND SEVERAL UPSTART FIBEROPTIC PHONESERVICE COMPETITORS BENT ON CAPTURING CHUNKS OF THE REGION'S COVETED BUSINESS MARKET OUR APPROACH IS THAT ALTHOUGH WE'LL LOSE MARKET SHARE TO NEW ENTRANTS WE'LL STILL BE GROWING OVERALL MR FERGUSON SAID REVENUES ROSE 2 TO 339 BILLION FROM 332 BILLION IN THE QUARTER NYNEX HAS BEEN CRITICIZED IN THE PAST FOR BEING SLOW TO RESPOND TO CHALLENGERS AND DOING LITTLE TO IMPROVE ITS PHONE SERVICE LIKE ITS BABY BELL SIBLINGS IT NOW HOPES TO BECOME MORE AGILE BY SLIMMING DOWN THIS INITIATIVE HELPS US PUT SOME TEETH INTO OUR GOAL OF IMPROVING PRODUCTIVITY BY ABOUT 30 MR SEIDENBERG SAID THE COMPANY EXPECTS TO REAP ENOUGH SAVINGS FROM ITS MOVES BY THE END OF 1996 TO OFFSET THE 16 BILLION CHARGE IN ADDITION IT EXPECTS TO NOTCH UP PRETAX SAVINGS OF ABOUT 17 BILLION ANNUALLY THEREAFTER MR SEIDENBERG ALSO REVEALED THAT NYNEX PLANS TO SPEND 150 MILLION TO 200 MILLION TO INSTALL 15 MILLION TO TWO MILLION BROADBAND LINES IN ITS REGION OVER THE NEXT TWO YEARS THESE LINES MOSTLY TO HOUSEHOLDS WOULD ALLOW THE COMPANY TO PROVIDE HIGHSPEED VOICE DATA AND VIDEO PROGRAMMING NYNEX PROVIDES PHONE SERVICE TO ABOUT 12 MILLION HOME CUSTOMERS THIS IS WHERE THE RELATIONSHIP WITH BLOCKBUSTER AND VIACOM COME IN MR SEIDENBERG SAID LAST YEAR NYNEX INVESTED 12 BILLION IN VIACOM INC AND BLOCKBUSTER ENTERTAINMENT CORP RECENTLY AGREED TO BE ACQUIRED BY VIACOM A STRENGTHENING ECONOMY IN THE SOUTHEAST HELPED BOLSTER FOURTHQUARTER RESULTS FOR BELLSOUTH THE ATLANTABASED COMPANY TOOK A 114 BILLION CHARGE TO TRIM ITS WORK FORCE AND FOR OTHER RESTRUCTURING COSTS IN ADDITION TO THE 140ASHARE RESTRUCTURING CHARGE THE QUARTER'S LOSS INCLUDED NINE CENTS A SHARE RELATED TO A FLORIDA RATECASE SETTLEMENT AND FIVE CENTS A SHARE FOR DEBT REFINANCINGS BUT WITHOUT THE SPECIAL CHARGES BELLSOUTH SAID THE COMPANY WOULD HAVE REPORTED THE STRONGEST OPERATING QUARTER IN ITS 10YEAR HISTORY BELLSOUTH'S ACCESS LINE GROWTH A GOOD BAROMETER FOR TELEPHONECOMPANY PERFORMANCE ROSE 179200 IN THE FOURTH QUARTER 38 MORE THAN THE INCREASE OF 130100 A YEAR EARLIER ACCESS LINES FOR THE YEAR GREW 684600 TO 194 MILLION BELLSOUTH'S US CELLULAR BUSINESS ROSE 39 TO ABOUT 16 MILLION CUSTOMERS AT THE END OF 1993 FROM 1992 REVENUE ROSE 6 TO 413 BILLION SEPARATELY SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP REPORTED A LOSS OF 224 MILLION OR 351 A SHARE FOR THE FOURTH QUARTER INCLUDING A RESTRUCTURING CHARGE OF 204 MILLION OR 321 A SHARE FOR PREVIOUSLY ANNOUNCED JOB CUTS OF 2500 EMPLOYEES OVER THE NEXT TWO YEARS THE REMAINDER OF THE CHARGE RELATES TO DISCONTINUED OPERATIONS AND DEBT REFINANCING NET INCOME A YEAR EARLIER WAS 40 MILLION OR 64 CENTS A SHARE THE COMPANY BASED IN NEW HAVEN CONN SAID THE WEAK REGIONAL ECONOMY AND INTENSIFYING COMPETITION CONTINUE TO PRESSURE EARNINGS REVENUE ROSE ABOUT 5 TO 4265 MILLION FROM 4059 MILLION 9401250050 940125 MARKETING BRIEF NOTED WHO'S NEWS JAMES PLATT SENIOR EDITOR OF FOX BROADCASTING CO'S NEWS MAGAZINE SHOW FRONT PAGE WAS NAMED VICE PRESIDENT SPECIAL MEDIA PROJECTS FOR NEWS AMERICA NEW MEDIA IN NEW YORK MR PLATT 37 SUCCEEDS JAAN TORV WHO WAS RECENTLY NAMED SENIOR EXECUTIVE VICE PRESIDENT OF PROGRAMMING AND DEVELOPMENT FOR NEWS CORP'S DELPHI INTERNET SERVICES SEPARATELY FOX BROADCASTING SAID KARDTV IN WEST MONROE LA FORMERLY AN ABC NETWORK AFFILIATE WILL MOVE TO THE FOX NETWORK ON APRIL 17 BRINGING FOX'S NUMBER OF AFFILIATES TO 142 9401250049 940125 REVIEW & OUTLOOK EDITORIAL CONGRESS REENTRENCHES MEMBERS OF CONGRESS RETURN TODAY TO HEAR PRESIDENT CLINTON'S STATE OF THE UNION MESSAGE WE'RE GOING TO EXPLAIN WHY SO MANY OF THEM WILL LOOK COMFORTABLY SMUG TONIGHT THE PROFESSIONAL HOUSE ADMINISTRATOR WHO WAS HIRED TO SWEEP OUT THE RANCID PATRONAGE SYSTEM THAT LED TO THE HOUSE BANK AND POST OFFICE SCANDALS HAS JUST QUIT HE SAYS HE WASN'T ALLOWED TO DO HIS JOB HOUSE REFORM EFFORTS APPEAR MORE AND MORE TO BE A SHAM RETIRED LT GENERAL LEONARD WISHART WAS HIRED TO RUN THE HOUSE'S INTERNAL OPERATIONS IN LATE 1992 AFTER AN EXHAUSTIVE YEARLONG SEARCH BY A HEADHUNTING FIRM A VETERAN OF 34 YEARS IN THE ARMY HE HAD HELD A VARIETY OF TOP MANAGEMENT POSITIONS HOWEVER WITHIN WEEKS HE LEARNED THAT THE HOUSE'S PETTY FIEFDOMS MAKE THOSE OF THE PENTAGON LOOK LIKE A MODEL OF COOPERATIVE SIMPLICITY ONE OF MR WISHART'S MAIN GOALS WAS TO GET THE POLITICS OUT OF SUCH SCANDALRIDDEN ENTITIES AS THE HOUSE POST OFFICE AND PAYROLL OFFICES THE LAST HOUSE ADMINISTRATOR WAS CONVICTED OF FRAUD INVOLVING THE HOUSE BANK WHICH WAS FINALLY CLOSED BUT MR WISHART COULDN'T IMPLEMENT ANY FURTHER REFORMS UNLESS A HOUSE OVERSIGHT COMMITTEE FIRST APPROVED THEM BY A UNANIMOUS VOTE THAT HIGH HURDLE ALLOWED CONGRESS'S BARONS TO CONTINUE PATRONAGEASUSUAL REP CHARLES ROSE CHAIRMAN OF THE HOUSE ADMINISTRATION COMMITTEE SIMPLY DECLINED TO SURRENDER CONTROL OVER THE HOUSE'S INFORMATION SYSTEMS EVEN THOUGH MEMBERS HAD VOTED IN 1992 TO GIVE RESPONSIBILITY FOR THEM TO GENERAL WISHART REP ROSE A KEY DESIGNER OF THE HOUSE'S INCUMBENTPROTECTION MACHINE SUCCESSFULLY RESISTED HE INSISTED THAT SINCE THE TRANSFER OF THE INFORMATION SYSTEMS HAD BEEN MADE BY THE LAST CONGRESS THAT DECISION WASN'T BINDING ON THIS CONGRESS AND MEMBERS SHOULD KEEP DIRECT CONTROL OF ALL COMPUTER AND DATA SYSTEMS GENERAL WISHART WAS POWERLESS TO STOP HIM INDEED HE WAS CONSTANTLY REMINDED THAT MEMBERS OF CONGRESS ARE INTERESTED IN THE APPEARANCE OF REFORM BUT NOT THE REALITY LAST OCTOBER HE LEARNED THAT TWO HOUSE EMPLOYEES HAD BEEN GIVEN BONUSES WITHOUT HIS KNOWLEDGE THE LAST STRAW MAY HAVE COME IN NOVEMBER WHEN THE OVERSIGHT COMMITTEE HE REPORTED TO DEADLOCKED 2 TO 2 ON APPROVING HIS NEW PERSONNEL POLICY REP ROSE AND REP BILL CLAY CHAIRMAN OF THE HOUSE'S CIVIL SERVICE COMMITTEE CAST THE TWO NO VOTES ON JANUARY 10 MR WISHART WROTE SPEAKER FOLEY TO ANNOUNCE HE WOULD BE CLEARING OUT HIS DESK WITHIN TWO WEEKS A MILITARY MAN TO THE END HE HAS REFUSED MEDIA INTERVIEWS BUT HIS LETTER MAKES CLEAR HIS FRUSTRATION WITH THOSE WHO BLOCKED HIS REFORMS UNFORTUNATELY I BELIEVE OTHERS HAVE DIFFERENT AGENDAS AND MY USEFULNESS TO YOU IS AT AN END HE WROTE SPEAKER FOLEY HE NOTED THAT THE SITUATION IS NOT LIKELY TO CHANGE IT APPEARS THAT SOME INDIVIDUALS HAVE BEGUN TO MAKE ME THE ISSUE THUS UNDERMINING THE CREDIBILITY OF THE OFFICE BUT EVEN HIS STUNNING RESIGNATION WASN'T ENOUGH TO SHAME HOUSE LEADERS INTO FOLLOWING MR WISHART'S ADVICE IN HIS LETTER HE RECOMMENDED A FORMER US POSTAL SERVICE EXECUTIVE BE NAMED AS HIS REPLACEMENT HOUSE LEADERS IGNORED THIS SUGGESTION AND INSTEAD NAMED MR WISHART'S DEPUTY WHO IS UNLIKELY TO HAVE ANY MORE LUCK BUCKING THE HOUSE'S LEGISLATIVE CAESARS THAN HE DID THOSE POTENTATES ARE EVEN NOW PLOTTING TO SUBVERT ONE OF THE FEW REFORMS THAT'S BEEN PROPOSED BY A JOINT COMMITTEE ON THE OPERATION OF CONGRESS IT WANTS TO CUT DOWN ON THE HOUSE'S BEWILDERING ARRAY OF 150 COMMITTEES AND SUBCOMMITTEES MANY WITH OVERLAPPING JURISDICTIONS ITS SUGGESTION CLOSE 19 SUBCOMMITTEES AND LIMIT MEMBERS TO SIX COMMITTEE ASSIGNMENTS BUT THE CONGRESSIONAL BLACK CAUCUS OPPOSES ANY CHANGES BECAUSE THAT MIGHT MEAN FEWER CHAIRMANSHIPS FOR ITS MEMBERS AMONG THE PROBLEMS I THINK THE HOUSE HAS TOO MANY COMMITTEES IS NOT ONE OF THEM SAYS ELEANOR HOLMES NORTON THE DISTRICT OF COLUMBIA'S DELEGATE JOSEPH CALIFANO WHO SERVED AS A TOP AIDE TO LYNDON JOHNSON AND IN JIMMY CARTER'S CABINET DISAGREES MANY MEMBERS ARE MORE LOYAL TO THE INTERESTS BEHIND THEIR COMMITTEES THAN TO THEIR CONSTITUENTS HE TOLD CSPAN TO COMBAT THIS MR CALIFANO WANTS PRESIDENTS TO HAVE A LINEITEM VETO LAST YEAR THE PUBLIC HAD HIGH HOPES THAT THE 112 HOUSE FRESHMEN REPRESENTING ONEFOURTH OF ALL MEMBERS WOULD SHAKE UP THE PLACE INSTEAD MOST HAVE BECOME HOUSE BROKEN AND SETTLED FOR TABLE SCRAPS DANGLED OVER THEIR HEADS BY THE LEADERSHIP GENERAL WISHART'S RESIGNATION IS THE LATEST EVIDENCE THAT CHANGE WILL COME ONLY IF VOTERS CONDUCT A THOROUGH HOUSE CLEANING AT THE POLLS OR IMPOSE TERM LIMITS THAT RESTRICT THE ABILITY OF HOUSE LEADERS TO PERPETUATE THEIR DYNASTIC RULE 9401250048 940125 RADIATION TEST VICTIMS FACE TOUGH LEGAL FIGHT BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL AMERICANS WHO WERE USED AS GUINEA PIGS IN COLD WAR RADIATION EXPERIMENTS MAY FIND IT EASIER TO WIN SYMPATHY THAN LEGAL DAMAGES CONSIDER THE CASE OF THE LATE ELMER ALLEN A RAILWORKER WHO WAS INJURED FALLING OFF A TRAIN IN 1946 AND WHOSE LEG WAS INJECTED WITH PLUTONIUM IN AN ALLEGED GOVERNMENTSPONSORED EXPERIMENT THE FOLLOWING YEAR ULTIMATELY THE LEG WAS AMPUTATED AND MR ALLEN DEVELOPED A VARIETY OF PROBLEMS DESCRIBED MOVINGLY BY HIS DAUGHTER ELMERINE WHITFIELD AT A CONGRESSIONAL HEARING LAST WEEK HIS AILMENTS INCLUDED EPILEPTICTYPE SEIZURES AND ALCOHOLIC BINGES AND IRRATIONAL BABBLINGS MS WHITFIELD TOLD THE HOUSE SUBCOMMITTEE ON ENERGY AND POWER HORRIFIC AS MR ALLEN'S STORY SOUNDS IT MAY NOT PLAY IN COURT BECAUSE MR ALLEN LIKE MANY OF THE RADIATION VICTIMS IS DEAD AND BECAUSE HIS AILMENTS ARE FAIRLY COMMON IT'S DIFFICULT TO SAY WHAT CAUSED HIS CONDITION SAYS ARVIN MASKIN A NEW YORK DEFENSE LAWYER WHO FORMERLY REPRESENTED THE JUSTICE DEPARTMENT IN LITIGATION OVER THE DEFOLIANT AGENT ORANGE IN ADDITION FEDERAL LAW PROHIBITS JURY TRIALS IN CASES AGAINST THE US GOVERNMENT AND JURIES ARE MUCH MORE LIKELY TO DISTRUST STATE OFFICIALS THAN ARE JUDGES SAYS ROBERT HAGER A PLAINTIFFS' LAWYER WHO REPRESENTS VIETNAM VETERANS WHO ARE CHALLENGING THE OUTCOME OF THE AGENT ORANGE CASE ENERGY SECRETARY HAZEL O'LEARY AND OTHER ADMINISTRATION OFFICIALS HAVE ACKNOWLEDGED THE GOVERNMENT'S ROLE IN THE PLUTONIUM EXPERIMENTS AND PLEDGED TO RELEASE ADDITIONAL DATA ABOUT THEM BUT THAT DOESN'T MEAN THE GOVERNMENT WILL BE COMPELLED TO COMPENSATE PARTICIPANTS IN THE EXPERIMENTS THE COURTS HAVE GIVEN THE FEDERAL GOVERNMENT EXTREMELY BROAD PROTECTION FROM PERSONALINJURY LAWSUITS ESPECIALLY IN CASES INVOLVING EVENTS THAT OCCURRED MANY YEARS AGO IN ADDITION SCIENTISTS DIFFER WIDELY ABOUT THE HEALTH CONSEQUENCES OF RADIATION EXPOSURE SO EVEN IF PARTICIPANTS SOME OF WHOM HAVE ALREADY SUED SUCCEED IN BRINGING THE GOVERNMENT TO COURT IT WILL BE VERY HARD TO PROVE THAT PARTICULAR ILLNESSES OR INJURIES ARE LINKED TO THE TESTS EVEN THOUGH MORALLY PEOPLE FIND THIS OFFENSIVE THE FACT OF THE MATTER IS THAT'S NOT THE YARDSTICK BY WHICH THE UNITED STATES'S CONDUCT IS JUDGED IN COURT SAYS MR MASKIN THE PRACTICAL EFFECT MAY BE THAT THE UNITED STATES IS ESSENTIALLY IMMUNE DESPITE THE ODDS HUNDREDS OF VICTIMS AND FAMILIES OF VICTIMS SUCH AS MR ALLEN ARE EXPECTED TO SUE THE GOVERNMENT ALREADY SAN FRANCISCO PLAINTIFFS' LAWYER MELVIN BELLI HAS FILED A CLAIM SEEKING 10 MILLION ON BEHALF OF RICHARD REECE A MENTALLY DISABLED MAN WHO SAYS HE WAS INVOLUNTARILY INJECTED WITH RADIOACTIVE MATERIAL AT A CALIFORNIA HOSPITAL IN THE 1940S MR BELLI SAYS HE HAS RECEIVED HUNDREDS OF SOLICITATIONS FROM OTHER ALLEGED VICTIMS AND IS PREPARING A CLASSACTION LAWSUIT SOME OF THEM SOUND LIKE NUTS MR BELLI SAYS THEY ARE AND THAT'S THE BIG THING SOME OF THEM WERE MADE CRAZY BY THIS RADIATION CONGRESS OF COURSE COULD DECIDE ON ITS OWN TO COMPENSATE VICTIMS AND MS O'LEARY HAS SUGGESTED SUCH ACTION MIGHT BE WARRANTED BUT ADMINISTRATION OFFICIALS HAVE BEEN VAGUE ABOUT WHETHER AND HOW PARTICIPANTS IN THE TESTS WOULD BE COMPENSATED AND SIMILAR FEDERAL PROGRAMS FOR OTHER VICTIMS OF NUCLEAR TESTING SUCH AS THE 1950S RESIDENTS OF THE MARSHALL ISLANDS HAVE BEEN CRITICIZED FOR MOVING TOO SLOWLY OR OFFERING TOO LITTLE MONEY EVEN IF THE GOVERNMENT IMPLEMENTS SUCH A PROGRAM LAWSUITS OVER WHICH PARTICIPANTS DESERVE COMPENSATION ARE CERTAIN TO PROLIFERATE THE ADMINISTRATION FOR INSTANCE HAS ALREADY SAID THAT ITS NEW TASK FORCE ON THE EXPERIMENTS WILL ONLY ADDRESS INTENTIONAL OR DELIBERATE EXPOSURES OF INDIVIDUALS TO THE RADIATION THE STUDY GROUP WON'T DEAL WITH INDIVIDUALS WHO LIVED NEAR NUCLEAR TEST AREAS AND MAY NOT INCLUDE VETERANS WHO WERE EXPOSED IN THE COURSE OF DUTY MANY VICTIMS WHO DO SUE THE GOVERNMENT WILL HAVE A DIFFICULT TIME EVEN GETTING THEIR CASE HEARD A FEDERAL STATUTE ALLOWS THE GOVERNMENT TO BE SUED OVER PETTY NEGLIGENCE SUCH AS WHEN PEOPLE SLIP AND FALL IN A POST OFFICE BUT THE GOVERNMENT IS LEGALLY IMMUNE FROM MOST ACCIDENTS AND INJURIES THAT RESULT FROM HIGHLEVEL POLICY DECISIONS IN 1987 FOR EXAMPLE A FEDERAL APPEALS COURT THREW OUT A LOWER COURT'S DECISION THAT THE GOVERNMENT WAS LIABLE FOR THE INJURIES OF 14 PEOPLE WHO LIVED NEAR ATOMIC BOMB TESTS CONDUCTED IN NEVADA IN THE 1950S AND 1960S JUDGES SHOULDN'T SECOND GUESS' THE POLITICAL SOCIAL AND ECONOMIC JUDGMENTS OF AN AGENCY THE APPEALS COURT RULED HOWEVER ERRONEOUS OR MISGUIDED THESE DELIBERATIONS MAY SEEM TODAY IT IS NOT THE PLACE OF THE JUDICIAL BRANCH TO QUESTION THEM NOW THE GOVERNMENT ALSO HAS SUCCESSFULLY DEFENDED SIMILAR LAWSUITS ON THE GROUND THAT THE VICTIMS WAITED TOO LONG AFTER THE INJURY OCCURRED TO FILE THEIR SUITS AND IT HAS INVOKED THE SOCALLED FERES DOCTRINE CREATED BY THE SUPREME COURT IN 1950 WHICH PROTECTS THE GOVERNMENT FROM SUITS BY SOLDIERS INJURED IN THE LINE OF DUTY THE DOCTRINE IS DESIGNED TO PREVENT DISPUTES SUCH AS SUING YOUR SERGEANT FOR NEGLIGENCE FOR TELLING YOU TO TAKE ONE HILL RATHER THAN ANOTHER HILL SAYS MR MASKIN THE DEFENSE LAWYER STILL SOME LAWYERS SAY THERE WILL BE HEAVY PRESSURE ON THE GOVERNMENT TO SETTLE SOME CASES THAT'S BECAUSE DESPITE THE GOVERNMENT'S APPARENTLY STRONG LEGAL POSITION OFFICIALS MUST DEAL WITH THE COURT OF PUBLIC OPINION THEY'RE GOING TO CLAIM IMMUNITY SAYS STANLEY CHESLEY WHO REPRESENTS PLAINTIFFS IN SEVERAL RADIATION CASES BUT HE SAYS AN ENLIGHTENED PUBLIC AND ENLIGHTENED COURTS AREN'T GOING TO PUT UP WITH THOSE DEFENSES NEW YORK STATE HAS AGREED TO PAY DELAWARE 200 MILLION TO SETTLE A DISPUTE OVER UNCLAIMED DIVIDENDS AND INTEREST HELD BY NEW YORK BROKERAGE FIRMS THE SETTLEMENT A FOLLOWUP TO A US SUPREME COURT DECISION LAST MARCH WILL BE PAID OVER FIVE YEARS THE STATES ANNOUNCED DELAWARE AT ONE TIME ESTIMATED THAT IT WAS OWED 891 MILLION NEW YORK OFFICIALS HAD SAID THE TAB WOULD BE 300 MILLION TO 350 MILLION AFTER THE HIGH COURT RULED LAST MARCH THAT DELAWARE HAS THE RIGHT TO COLLECT TWO DECADES' WORTH OF THESE DIVIDENDS AND INTEREST WHEN THE BROKERAGE HOUSES HOLDING THE ASSETS ARE INCORPORATED IN DELAWARE THE SETTLEMENT WON'T NECESSARILY END THE FIGHT AS MOST OTHER STATES ARE INVOLVED AS WELL OTHER STATES THAT INTERVENED IN THE CASE CONTENDED THAT UNCLAIMED ASSETS TOTALING 1 BILLION SHOULD BE SPREAD MORE BROADLY AND LEGISLATION PENDING IN CONGRESS WOULD NEGATE DELAWARE'S HIGHCOURT VICTORY AND DIVIDE THE DISPUTED ASSETS MORE EVENLY THE SUPREME COURT CASE INVOLVED DIVIDENDS AND INTEREST COLLECTED BY NEW YORK SINCE 1972 FROM BROKERAGE AND BANK ACCOUNTS WHOSE OWNERS COULDN'T BE LOCATED NEW YORK TOOK THE MONEY ON THE THEORY THAT IT COULD ASSUME OWNERSHIP OF PROPERTY ABANDONED WITHIN THE STATE DELAWARE WHICH SUED NEW YORK IN 1988 CONTENDED THAT THE STATE IN WHICH BROKERAGE FIRMS ARE INCORPORATED OUGHT TO BE THE ONE THAT COLLECTS THE ABANDONED ASSETS MANY MAJOR BROKERAGE FIRMS ARE INCORPORATED IN DELAWARE BECAUSE OF THE STATE'S FAVORABLE CORPORATE LAWS AND WELLREGARDED COURT SYSTEM IN ITS RULING IN MARCH THE SUPREME COURT ESSENTIALLY AGREED WITH DELAWARE'S POSITION IN CONNECTION WITH THE SETTLEMENT DELAWARE HAS FILED A MOTION ASKING THE SUPREME COURT TO DISMISS ITS PENDING CLAIMS AGAINST NEW YORK CALIFORNIA STOCKBROKER RAFI KHAN SUED THE NEW YORK TIMES FOR ALLEGEDLY LIBELING HIM IN THREE ARTICLES THE COMPLAINT IN STATE COURT IN MINEOLA NY WHICH ALSO NAMES REPORTER SUSAN ANTILLA AND EDITOR SALLIE HOFMEISTER ALLEGES THAT THE PAPER FALSELY STATED THAT MR KHAN WAS FINED IN CANADA IN 1976 FOR SECURITIES FRAUD AND WAS RECENTLY SUED BY THE US SECURITIES AND EXCHANGE COMMISSION IN ADDITION MR KHAN CLAIMS IN HIS SUIT THAT MS ANTILLA FALSELY WROTE IN AN ARTICLE APPEARING IN THE ORANGE COUNTY REGISTER THAT MR KHAN DID IMPROPER FAVORS FOR CLIENTS THE REGISTER WASN'T NAMED IN THE SUIT WHICH SEEKS 210 MILLION IN DAMAGES THE ARTICLES RAN BETWEEN OCTOBER 1993 AND JAN 13 THE TIMES PUBLISHED CORRECTIONS ON OCT 25 AND JAN 14 STATING THAT MR KHAN WAS NEVER FINED IN CANADA FOR STOCK FRAUD AND THAT HE WASN'T SUED BY THE SEC BERNARD L BURTON A MELVILLE NY ATTORNEY FOR MR KHAN SAID HIS CLIENT FEARS THAT THE ARTICLES DAMAGED HIS CHANCES OF WINNING AN ONGOING PROXY FIGHT TO OUST MANAGEMENT OF ICN PHARMACEUTICALS INC COSTA MESA CALIF THE SHAREHOLDER VOTES WILL BE ANNOUNCED AT ICN'S ANNUAL MEETING FEB 1 A FEDERAL COURT IN NEW YORK LAST MONTH ALLOWED ICN TO BLOCK MR KHAN'S PLAN TO UNSEAT THE COMPANY'S CURRENT MANAGEMENT THROUGH A CONSENT SOLICITATION WHICH REQUIRES APPROVAL BY HOLDERS OF A MAJORITY OF ICN'S TOTAL SHARES OUTSTANDING JUDGE JOHN SPRIZZO IN AN ORAL RULING HIGHLY CRITICAL OF MR KHAN SAID HE PROBABLY WILL ASK US AUTHORITIES TO INVESTIGATE MR KHAN'S INVOLVEMENT IN A 1986 BRITISH GAS PLC SECURITIES SCHEME MR KHAN HAS DENIED ANY WRONGDOING THE TIMES PUBLISHED BY THE NEW YORK TIMES CO NEW YORK AND MS HOFMEISTER HAD NO COMMENT ON THE LIBEL SUIT MS ANTILLA DIDN'T RETURN A PHONE CALL SEEKING COMMENT RAFI M KHAN VS NEW YORK TIMES CO NY SUPREME COURT COUNTY OF NASSAU 94001904 PAUL M BARRETT IN WASHINGTON AND JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401250047 940125 FOREIGN EXCHANGE DOLLAR DITHERS AGAINST MARK AND YEN STERLING ADVANCES ON BULLISH UK DATA BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK CONFLICTING SIGNALS ABOUT THE DIRECTION OF THE MARK AND YEN LEFT THE DOLLAR DITHERING YESTERDAY STERLING THOUGH ADVANCED BRIEFLY ON ENCOURAGING UK BUSINESSCONFIDENCE DATA LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17508 MARKS DOWN FROM 17540 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11170 YEN UP A BIT FROM 11160 YEN STERLING WAS TRADING AT 14946 UP FROM 14920 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11166 YEN AND AT 17518 MARKS A 49 PLUNGE BY THE NIKKEI STOCK AVERAGE THE JAPANESE MARKET'S WORST DAY IN MORE THAN TWO YEARS BOOSTED THE DOLLAR IN ASIAN TRADING AS INTERNATIONAL PLAYERS LIQUIDATED YEN HOLDINGS BUT THE GAINS DISSIPATED LATER IN THE DAY AS PLAYERS DECIDED THAT THE SAME JAPANESE POLITICAL PROBLEMS THAT SPARKED THE STOCK MARKET DROP MAY ACTUALLY SUPPORT THE YEN IF THE JAPANESE GOVERNMENT IS TOO FRAGILE TO PASS ECONOMICREFORM LEGISLATION THEY SAID US OFFICIALS MIGHT BEGIN CALLING FOR A STRONG YEN AS A MEANS TO CUT JAPAN'S TRADE SURPLUS FURTHERMORE IF THE NIKKEI'S WEAKNESS CONTINUES THE EFFECT OF FOREIGNERS SELLING OFF YEN HOLDINGS MAY BE COUNTERED BY JAPANESE COVERING LOSSES BY REPATRIATING CAPITAL FROM OVERSEAS AND BUYING YEN IN THE PROCESS IN A SENSE IT'S A PURE WASH SAID ANN B FINALY AN ASSISTANT VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN BARRING ANY SPECTACULAR DEVELOPMENTS THE DOLLAR SHOULD TRADE SIDEWAYS THIS WEEK SHE SAID WITH A BIAS TOWARD A STRONGER DOLLAR REMAINING STRONG US ECONOMIC FUNDAMENTALS ARE SUPPORTING THE DOLLAR TRADERS SAID WITH DATA DUE THIS WEEK ON DECEMBER DURABLE GOODS AND FOURTHQUARTER GROSS DOMESTIC PRODUCT EXPECTED TO REINFORCE PERCEPTIONS OF A MUSCULAR US RECOVERY JAPAN'S ECONOMY MEANWHILE IS SINKING DEEPER INTO RECESSION AND FIGURES ON TRADE HOUSEHOLD SPENDING AND RETAIL SALES ARE EXPECTED TO CONFIRM THAT BUT THE WEAKNESS OF THE HOSOKAWA GOVERNMENT AND THE SLIM LIKELIHOOD THAT IT WILL BE ABLE TO PUSH MEANINGFUL POLITICAL OR ECONOMIC REFORMS THROUGH PARLIAMENT HAS RAISED THE SPECTER OF RENEWED US INTERFERENCE IN THE FOREIGNEXCHANGE MARKET US TREASURY SECRETARY LLOYD BENTSEN ON A VISIT TO TOKYO SUNDAY MADE IT CLEAR THAT THE US STILL EXPECTS PROGRESS ON OPENING THE JAPANESE AUTOMOBILE INSURANCE AND GOVERNMENT PROCUREMENT MARKETS DESPITE THE RECENT POLITICAL UPHEAVALS IN JAPAN IF NO PROGRESS IS MADE THE US WILL HAVE TO REEXAMINE THE TRADE TALKS FRAMEWORK MR BENTSEN SAID A LOT OF PEOPLE ARE NERVOUS THAT MR BENTSEN IS GOING TO COME OUT AND CALL FOR A STRONGER YEN SAID MS FINALY THE OUTLOOK FOR THE MARK WAS ALSO MUDDLED MONDAY INFLATION FIGURES FROM THE GERMAN STATE OF NORTH RHINEWESTPHALIA WERE LOWER THAN MARKET EXPECTATIONS YET BUNDESBANK DIRECTORATE MEMBER EGON MEISTER WAS QUOTED MONDAY AS SAYING THAT FORCED EASING WOULD BE COUNTERPRODUCTIVE FOR THE GERMAN ECONOMY AND SUGGESTING THAT THE BUNDESBANK IS CONCERNED ABOUT THE CURRENT WEAKNESS OF THE MARK 9401250046 940125 CALIFORNIA'S HIGHWAYFINANCING WOES THAT EXISTED BEFORE QUAKE ARE DISCLOSED BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA STATE TRANSPORTATION OFFICIALS SAID THAT PRIOR TO LAST WEEK'S EARTHQUAKE THEY HAD TEMPORARILY FROZEN SPENDING ON ADDITIONAL HIGHWAY PROJECTS AND HAD ALLOCATED ONLY ABOUT ONETHIRD OF THE PROJECTED 1 BILLION NEEDED TO SHORE UP HIGHWAYS AGAINST SEISMIC STRESS TESTIFYING BEFORE A STATE LEGISLATIVE COMMITTEE IN SACRAMENTO THESE OFFICIALS PROVIDED THE MOST SOBERING ASSESSMENT YET OF CALIFORNIA'S HIGHWAYFINANCING WOES AND THE DIFFICULTIES THE STATE FACES IN REBUILDING DAMAGED ROADS AND OVERPASSES THE SHORTCOMINGS HIGHLIGHTED AT THE HEARING COULD CREATE BIG HEADACHES FOR STATE POLITICIANS AND ARE LIKELY TO FUEL DEMANDS FOR HEFTIER FEDERAL ASSISTANCE TO ECONOMICALLY HARDHIT SOUTHERN CALIFORNIA INDEED EARLIER YESTERDAY IN WASHINGTON THE CLINTON ADMINISTRATION INDICATED ITS INTENTION TO ASK CONGRESS PERHAPS DURING THE NEXT FEW DAYS TO APPROPRIATE ABOUT 4 BILLION IN QUAKE RELIEF DESPITE CALLS FROM SOME REPUBLICANS THAT SUCH UNANTICIPATED SPENDING SHOULD BE OFFSET BY SPENDING CUTS ELSEWHERE LAURA TYSON HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS SAID THAT THE WHITE HOUSE PLANS TO USE AN EMERGENCY CLAUSE IN THE DEFICITREDUCTION LAW TO EXEMPT THE APPROPRIATIONS FROM EXISTING CAPS ON SPENDING WE'RE TALKING IN THE RANGE OF 4 BILLION SHE SAID CAUTIONING THAT THE FINAL NUMBER COULD BE LARGER MINDFUL OF CALIFORNIA'S POLITICAL IMPORTANCE THE ENVIRONMENTAL PROTECTION AGENCY AS EXPECTED ALSO CANCELED PLANS TO WITHHOLD AS MUCH AS 800 MILLION IN FEDERAL HIGHWAY FUNDS AS A RESULT OF THE STATE'S REFUSAL TO SET UP CENTRALIZED AUTOINSPECTION STATIONS BUT UNLESS A COMPROMISE IS WORKED OUT FEDERAL CLEAN AIR LAWS COULD PUT THOSE FUNDS IN JEOPARDY NEXT YEAR AT THE HEARING JAMES VAN LOBEN SELS DIRECTOR THE STATE'S TRANSPORTATION AGENCY DECLINED TO PROVIDE SPECIFIC REPAIR COSTS FOR THE EIGHT MAJOR FREEWAY STRUCTURES THAT COLLAPSED OR OTHER DAMAGED ROADWAYS IN THE AREA SOME LAWMAKERS WERE SHARPLY CRITICAL OF PAST SPENDING PRIORITIES WITH ONE STATE SENATOR ACCUSING THE AGENCY OF SPENDING MORE MONEY ON FREEWAY LANDSCAPING THAN ON SEISMIC SAFETY ACCORDING TO NEW FIGURES RELEASED BY LAWMAKERS LESS THAN 10 OF 1056 MULTIPLECOLUMN BRIDGES SLATED FOR SEISMIC RETROFITS AFTER THE 1989 SAN FRANCISCOAREA QUAKE HAVE BEEN COMPLETED WITH ANOTHER 334 IN VARIOUS STAGES OF PRECONSTRUCTION IT WILL COST A TOTAL OF 15 BILLION JUST TO SHORE UP THOSE BRIDGES AND 15 LARGE TOLL BRIDGES AROUND THE STATE ACCORDING TO THE REPORT BY THE STATE ASSEMBLY TRANSPORTATION COMMITTEE WHICH CONCLUDES THAT SUCH RETROFIT PROJECTS HAVE LANGUISHED AS A PRIORITY THE TEMPORARY FREEZE ON NEW PROJECTS AND HIRING BY THE TRANSPORTATION AGENCY DAYS BEFORE THE QUAKE REFLECTS ESTIMATES THAT THE STATE FACES A SHORTAGE OF AS MUCH AS 6 BILLION IN HIGHWAY REPAIR AND CONSTRUCTION ACCOUNTS LATER IN THE DECADE TO COPE WITH THE ROAD DAMAGE RECORD NUMBERS OF AREA RESIDENTS TOOK TO TRAINS CARPOOLS AND OTHER MEANS OF GETTING TO WORK THAT ARE RELATIVELY UNUSUAL FOR SOUTHERN CALIFORNIA MORE THAN 25000 COMMUTERS 10 TIMES THE TYPICAL NUMBER ON SOME ROUTES TOOK DOUBLEDECK METROLINK TRAINS TO REACH OFFICES IN BURBANK DOWNTOWN LOS ANGELES AND ELSEWHERE SEPARATELY BUILDING OFFICIALS ALREADY HAVE IDENTIFIED ABOUT 1 BILLION IN EARTHQUAKERELATED STRUCTURAL DAMAGE IN LOS ANGELES WITH ONLY 60 OF DAMAGED BUILDINGS INSPECTED SO FAR 9401250045 940125 FLAGSTAR LOSS IS 165 BILLION ON BIG CHARGE FOURTHPERIOD ITEM STEMS FROM BUYOUT IN 1989 RESTAURANTS TO BE SHED BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL FLAGSTAR COS AFTER NEARLY FOUR YEARS OF LOSSES SAID IT WILL CLOSE OR SELL 270 RESTAURANTS AND SWALLOW 17 BILLION IN FOURTHQUARTER CHARGES TO SHORE UP ITS BALANCE SHEET THE SPARTANBURG SC COMPANY WHICH OWNS OR FRANCHISES FIVE RESTAURANT CHAINS ALSO SAID IT PLANS TO OVERHAUL MANY OF ITS APPROXIMATELY 1000 DENNY'S OUTLETS TO MEET INCREASED COMPETITION THE CHARGES RESULTED IN A FOURTHQUARTER LOSS OF 165 BILLION OR 3897 A SHARE THAT COMPARED WITH A YEAREARLIER LOSS OF 1582 MILLION OR 5 A SHARE REVENUE IN THE FOURTH QUARTER ROSE 96 TO 102 BILLION FROM 9259 MILLION THE 17 BILLION IN CHARGES INCLUDES 225 MILLION TO COVER FLAGSTAR'S RESTAURANT RESTRUCTURING AND 15 BILLION FOR A WRITEOFF OF GOODWILL THAT GOODWILL WAS INCURRED IN 1989 WHEN CONISTON PARTNERS BOUGHT CONTROLLING INTEREST IN THE COMPANY WHICH IS NOW CONTROLLED BY KOHLBERG KRAVIS ROBERTS & CO GOODWILL OR THE EXCESS OVER BOOK VALUE PAID FOR A COMPANY'S ASSETS IS TYPICALLY DEDUCTED FROM FUTURE PROFITS BUT FLAGSTAR SAID YESTERDAY THAT ITS FINANCIAL RESULTS REPEATEDLY HAD FALLEN SHORT OF THE 48 MILLION A YEAR IN EARNINGS NEEDED TO AMORTIZE THE GOODWILL ASSUMING THE CONTINUATION OF THE PRESENT TREND WE WOULD CONTINUE TO SHOW A NET LOSS FOR A LONG PERIOD OF TIME SAID SPOKESMAN COLEMAN SULLIVAN INDUSTRY ANALYSTS SAID THEY WERE SURPRISED BY THE TIMING OF THE WRITEOFF BUT THEY ADDED THAT THE MOVE WOULD HELP STRAIGHTEN OUT THE COMPANY'S BALANCE SHEET AND MAKE IT EASIER FOR FLAGSTAR TO BEGIN POSTING PROFITS STILL THEY CAUTIONED THAT THE COMPANY'S HUGE DEBT LOAD SOME 24 BILLION AND OUTDATED RESTAURANTS WOULD MAKE IT DIFFICULT TO POST PROFITS THIS YEAR THIS IS ANOTHER RECOGNITION THAT THE PRICE OF THE BUYOUT WAS TOO HIGH SAID BARRY STOUFFER AN ANALYST WITH JC BRADFORD TRAFFIC AT DENNY'S THE COMPANY'S FLAGSHIP CHAIN DROPPED 7 LAST QUARTER DINERS ANALYSTS SAID WERE ABANDONING THE CHAIN FOR NEWER MORE ECLECTIC FOOD CHAINS SEVERAL OF THE COMPANY'S RECENT EFFORTS TO WIN BACK CUSTOMERS INCLUDING AN ALLYOUCANEAT PROMOTION HAVE FLOPPED PERHAPS MORE IMPORTANT THE CHAIN'S IMAGE HAS BEEN BRUISED BY A SPATE OF LAWSUITS CHARGING DENNY'S WITH DISCRIMINATION LAST YEAR FLAGSTAR SIGNED A PACT WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE TO INCREASE MINORITY MANAGEMENT AND VENDORS AT THE COMPANY TO TURN THE CHAIN AROUND FLAGSTAR SAID YESTERDAY THAT IT PLANS TO REVAMP MANY OF ITS DENNY'S OUTLETS OVER THE NEXT TWO YEARS BY ADDING NEW FACADES MORE LIGHTS NEW MENUS AND CONTEMPORARY LOGOS A LOT OF THOSE STORES HAVEN'T BEEN TOUCHED IN 20 YEARS SAID FLAGSTAR'S MR SULLIVAN FLAGSTAR WILL ALSO TRY TO WEED OUT THE UNPROFITABLE RESTAURANTS FROM ITS OTHER OPERATIONS EL POLLO LOCO HARDEE'S QUINCY'S AND CANTEEN OF THE 270 RESTAURANTS TARGETED FOR SALE OR CLOSING 135 ARE DENNY'S 45 ARE EL POLLO LOCOS AND 90 ARE QUINCY'S LOCATIONS WHILE SOME MAY CLOSE THE COMPANY SAID IT HOPES TO SELL MOST TO FRANCHISERS FOR ALL OF 1993 FLAGSTAR REPORTED A LOSS INCLUDING CHARGES OF 172 BILLION OR 4093 A SHARE COMPARED WITH A YEARAGO LOSS OF 225 MILLION OR 929 A SHARE REVENUE ROSE 67 TO 397 BILLION FROM 372 BILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY FLAGSTAR SHARES FELL 25 CENTS APIECE TO 1025 9401250044 940125 US RESERVE ASSETS DECLINE 600 MILLION SPECIAL TO THE WALL STREET JOURNAL WASHINGTON US OFFICIAL RESERVE ASSETS FELL 600 MILLION IN DECEMBER TO 7344 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S DECREASE COMPARED WITH A 508 MILLION DECLINE IN RESERVE ASSETS IN NOVEMBER TO 7404 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DECREASED 538 MILLION IN DECEMBER TO 4153 BILLION WHILE ITS GOLD RESERVES FELL 1 MILLION TO 1105 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH FELL 52 MILLION TO 904 BILLION AND ITS RESERVE POSITION AT THE IMF DROPPED 9 MILLION TO 1182 BILLION 9401250043 940125 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN EXPRESS PLANS TO SPEND OVER 1 BILLION TO SPIN OFF ITS LEHMAN BROTHERS INVESTMENT BANKING UNIT THE COMPANY WILL BUY NEWLY CREATED LEHMAN STOCK A CAPITAL INFUSION INTENDED TO PUT THE UNIT ON SOUND FINANCIAL FOOTING FOR PUBLIC OWNERSHIP THE LEHMAN COMMON SHARES WILL BE DISTRIBUTED TO AMERICAN EXPRESS SHAREHOLDERS AS A DIVIDEND IN APRIL NYNEX SAID IT WILL SLASH ITS WORK FORCE OVER 20 AND TAKE A 16 BILLION CHARGE RESULTING IN RECORD LOSSES FOR THE FOURTH QUARTER AND THE YEAR FLAGSTAR SAID IT WILL CLOSE OR SELL 270 RESTAURANTS AND TAKE 17 BILLION IN CHARGES FOR THE FOURTH QUARTER DIGITAL EQUIPMENT IS PLANNING ITS SECOND MAJOR REORGANIZATION IN LESS THAN A YEAR COMPANY INSIDERS SAID GITANO'S DIRECTORS VOTED TO PUT THE COMPANY UP FOR SALE AFTER ONE OF ITS BIGGEST CUSTOMERS WALMART REFUSED TO DO BUSINESS WITH THE APPAREL MARKETER WHICH RECENTLY PLEADED GUILTY TO VIOLATIONS OF US CUSTOMS LAWS THE NIKKEI STOCK AVERAGE PLUMMETED 95419 OR 49 MONDAY TO 1835324 HURT BY THE DEFEAT OF A PLAN TO REFORM JAPAN'S POLITICAL SYSTEM FRANK LORENZO IS EXPECTED TO ANNOUNCE THAT TWO NEW INVESTORS HAVE JOINED HIS AIRLINE VENTURE DILUTING HIS STAKE TO WELL BELOW 50 FROM 74 IN AN EFFORT TO WIN TRANSPORTATION DEPARTMENT APPROVAL TO LAUNCH THE CARRIER THE HIGH COURT REJECTED AN AIRLINEINDUSTRY CHALLENGE TO WHAT CARRIERS ARGUE ARE EXCESSIVE AIRPORT FEES MERRILL LYNCH AND TWO OTHER LARGE BROKERAGE FIRMS POSTED SHARPLY HIGHER PROFIT FOR THE FOURTH QUARTER AND FULL YEAR BUT MANY INDUSTRY STOCKS FELL AS ANALYSTS SAY EVEN A MODEST UPTICK IN INTEREST RATES COULD HURT 1994 RESULTS BOEING'S FOURTHQUARTER PROFIT FELL 15 ALTHOUGH THE DROP WAS SMALLER THAN EXPECTED SOME ANALYSTS LOWERED THEIR 1994 ESTIMATES BECAUSE BOEING PLANS TO BOOST DEVELOPMENT SPENDING TEXACO AND AMOCO REPORTED HIGHER FOURTHQUARTER PROFIT AS EXTRAORDINARY ITEMS OVERCAME LOWER OIL PRICES APPLE HAS SOLD ABOUT 80000 OF ITS HANDHELD NEWTON MESSAGEPADS ANALYSTS SAY THE SALES RESULTS CONFIRM THAT THE PRODUCT HAS FLOUNDERED COMPAQ IS RETHINKING THE DESIGN OF ITS OWN HANDHELD PERSONAL COMPUTER FOLLOWING CRITICISM OF THE NEWTON THE FDIC PROPOSED GUIDELINES TO PREVENT INSIDERS FROM REAPING EXCESSIVE PROFITS WHEN CERTAIN DEPOSITOROWNED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDEROWNED INSTITUTIONS MASTERCARD'S PRESIDENT AND CHIEF WILL JOIN ADVANTA A FINANCIALSERVICES FIRM AS EXECUTIVE VICE CHAIRMAN ELI LILLY'S RATING ON ABOUT 900 MILLION OF DEBT WAS LOWERED BY MOODY'S WHICH FORESEES LOWER PROFIT MARGINS WORDPERFECT PLANS TO DISMISS 1000 WORKERS OR 175 OF ITS WORLDWIDE FORCE PARTLY TO BOOST PROFIT WITH AN EYE TOWARD A PUBLIC STOCK OFFERING BONDS LEHMAN BROTHERS TREASURY INDEX 559940 OFF 841 COMMODITIES OIL 1517 A BARREL UP 23 CENTS DOW JONES FUTURES INDEX 14312 UP 102 SPOT INDEX 12911 OFF 029 9401250042 940125 BUSINESS BRIEF AMERICAN BRANDS INC FOURTHQUARTER NET FELL 20 DUE TO CURRENCY FLUCTUATION PUMMELED BY CIGARETTE PRICE WARS AND FLUCTUATING FOREIGN CURRENCIES AMERICAN BRANDS INC SAID THAT FOURTHQUARTER NET INCOME FELL 20 AMERICAN BRANDS BASED IN OLD GREENWICH CONN REPORTED FOURTHQUARTER NET INCOME OF 1874 MILLION OR 92 CENTS A SHARE INCLUDING A 26 MILLION NONCASH ACCOUNTING ADJUSTMENT THE COMPANY WHICH HAS CORE BUSINESSES IN TOBACCO DISTILLED SPIRITS LIFE INSURANCE HARDWARE AND OTHER PRODUCTS HAD FOURTHQUARTER PROFIT OF 2333 MILLION OR 115 A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER EDGED UP 12 TO 382 BILLION FROM 377 BILLION A YEAR EARLIER THE COMPANY SAID FOURTHQUARTER REVENUE WOULD HAVE RISEN ABOUT 5 WITHOUT THE IMPACT OF FLUCTUATING CURRENCIES OVERSEAS FOR THE YEAR AMERICAN BRANDS REPORTED THAT NET INCOME FELL 47 TO 4698 MILLION OR 232 A SHARE FROM 8838 MILLION OR 429 A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDE A ONETIME CHARGE OF 1984 MILLION OR 98 CENTS A SHARE FOR ACCOUNTING CHANGES REVENUE FOR THE YEAR FELL 63 TO 137 BILLION FROM 1462 BILLION 9401250041 940125 TECHNOLOGY & HEALTH INTEL TO UNVEIL PRODUCTS TO ENABLE USERS OF DISPARATE PCS TO DO WORK TOGETHER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP MOVING TO STAKE OUT TURF IN A POTENTIALLY BIG NEW BUSINESS WHILE BOLSTERING ITS OWN MICROPROCESSOR LINE WILL UNVEIL TODAY NEW PRODUCTS THAT ALLOW USERS OF DISPARATE PERSONAL COMPUTERS TO WORK ON DOCUMENTS TOGETHER AND SEE EACH OTHER WHILE DOING SO THE SANTA CLARA CALIF CHIPMAKING GIANT SAID ONE PRODUCT CALLED PROSHARE DOCUMENT IS A SOFTWARE PROGRAM THAT ALLOWS USERS OF PCS IN SEPARATE LOCATIONS TO EDIT THE SAME DOCUMENT IN ITS MOST BASIC ELEMENT YOU GET A PC DOCUMENT ON YOUR SCREEN SEND IT OVER THE WIRE TO ANOTHER PERSON AND YOU BOTH SEE THE SAME DOCUMENT SAID ANDREW GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER YOU CAN CHANGE IT ANNOTATE IT POINT AT IT REARRANGE THE DOCUMENT ALL THE WHILE CONVERSING OVER THE TELEPHONE ANOTHER PRODUCT CALLED PROSHARE VIDEOSYSTEM 200 ALLOWS PC USERS TO SEE ONE ANOTHER ON THEIR RESPECTIVE COMPUTER SCREENS WHILE AT THE SAME TIME WORKING OVER A DOCUMENT INTEL SAID THE PRODUCTS ARE SET TO APPEAR IN US RETAIL STORES TODAY WITH A SUGGESTED RETAIL PRICE OF 99 FOR PROSHARE AND PRICES RANGING FROM 1199 TO 2499 FOR VIDEOSYSTEM 200 THE VIDEO SYSTEM'S PRICE WILL VARY DEPENDING ON WHICH LOCAL TELECOMMUNICATIONS PROVIDER IS USED TO START IT UP INTEL SAID AMERICAN TELEPHONE & TELEGRAPH CO BELLSOUTH CORP AND PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT AMONG OTHERS HAVE AGREED TO WORK WITH INTEL ON THE CONFERENCING PRODUCTS INTEL'S STRATEGY IN JUMPING INTO THE FLEDGLING PC CONFERENCING MARKET IS TWOFOLD IT WANTS TO GET IN ON A 70 MILLION INDUSTRY THAT SOME ANALYSTS THINK COULD EXPLODE INTO THE BILLIONS OF DOLLARS BY DECADE'S END AND SINCE THE VIDEO SYSTEM REQUIRES HIGH COMPUTING POWER INTEL WANTS TO PERSUADE USERS TO QUICKLY UPGRADE TO ITS NEWEST PENTIUM CHIP AS IT FACES IMPENDING COMPETITION FROM A RIVAL POWERPC CHIP DEVELOPED BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC OUR WHOLE BUSINESS STRATEGY DEPENDS ON INCREASING VOLUME OF HIGHERPOWERED CHIPS SO WE HAVE BEEN LOOKING FOR APPLICATIONS THAT TAKE ADVANTAGE OF THE COMPUTING POWER THAT IS AVAILABLE MR GROVE SAID INTEL'S LAUNCH OF PRODUCTS IN THE MARKET COMES AFTER IT RECENTLY ASSEMBLED A GROUP OF COMPANIES THAT PLANS TO CREATE RULES FOR HOW PCS WORK TOGETHER TO HOLD CONFERENCES ON THEIR MACHINES WHILE THE CONFERENCING TECHNOLOGY HAS DEVELOPED THERE HASN'T BEEN A SINGLE DOMINANT STANDARD THAT WOULD ALLOW COMPANIES TO ENSURE THAT THEIR PRODUCTS ALL WORK TOGETHER IN SUCH CONFERENCES OTHER PROBLEMS HAVE DOGGED THE GROWTH OF COMPUTER CONFERENCING ONE HAS BEEN THE TECHNOLOGY'S RELATIVE HIGH COST BECAUSE VIDEOCONFERENCING SYSTEMS CAN RUN INTO THE TENS OF THOUSANDS OF DOLLARS THE COSTS HAVE BEEN HIGH BECAUSE COMPANIES SUCH AS PICTURETEL CORP DANVERS MASS PROVIDE A SEPARATE COMPUTER TO POWER THE CONFERENCING ARRANGEMENTS ALTHOUGH INTEL'S PRICES ARE FAR LOWER THE COMPANY'S PC PRODUCTS WON'T SUPPLANT THE ELABORATE VIDEOCONFERENCING SYSTEMS THAT PICTURETEL AND OTHER COMPETITORS PROVIDE FOR LARGE GATHERINGS SUCH AS IN A BOARD ROOM WITHOUT PERSONAL COMPUTERS ANOTHER QUESTION MARK ON THE TECHNOLOGY ANALYSTS SAY IS HOW MANY PEOPLE WILL REALLY WANT TO SEE EACH OTHER RATHER THAN CONVERSING OVER THE TELEPHONE ANALYSTS SAY THERE APPEARS TO BE MORE POTENTIAL IN COLLABORATION OF WORK OVER PCS 9401250040 940125 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN GAY PARTNERS' BENEFITS GAIN FAVOR BUT THE PACE OF CHANGE IS SLOW LAW FIRMS CONSULTANTS AND MANUFACTURERS ARE ASKING MORE OFTEN ABOUT INSURING EMPLOYEES' SAMESEX MATES MOSTLY IN THE NORTHEAST AND WEST SAYS ANDREW SHERMAN OF SEGAL CO IN BOSTON HOME BOX OFFICE INC IN NEW YORK WHICH BEGAN OFFERING SPOUSAL EQUIVALENTS COVERAGE IN JULY SAYS COVERING GAY PARTNERS COSTS 83 WHAT HETEROSEXUAL SPOUSES COST BECAUSE OF NO PREGNANCY COSTS INTERNATIONAL DATA GROUP IN BOSTON HAS 25 PEOPLE IN ITS NONMARRIED PARTNER PLAN ABOUT A FIFTH ARE HOMOSEXUAL COUPLES STILL CHANGE ISN'T QUICK FRANCIS MOYNIHAN OF THE NEW ENGLAND EMPLOYEE BENEFITS COUNCIL SAYS THE COVERAGE ISN'T DRAWING MORE INTEREST THAN MANY OTHER POTENTIAL NEW BENEFITS SUCH AS ONSITE DAY CARE DESPITE TALKS WITH ITS GAY AND LESBIAN CAUCUS XEROX CORP OF STAMFORD CONN DECIDES AGAINST COVERAGE BECAUSE OF COST AS WITH MANY OTHER AREAS OF BENEFITS COMPANIES WAIT TO SEE HOW CLINTON'S HEALTHCARE OVERHAUL TURNS OUT BEFORE MAKING ANY MAJOR CHANGES SEX DISCRIMINATION IT HAPPENS ONLY TO OTHERS MANY WOMEN SAY WOMEN CONTEND THAT SEX BIAS IS PREVALENT IN THE WORKPLACE BUT RARELY BELIEVE IT HAPPENS TO THEM SAY PSYCHOLOGISTS DIANA CORDOVA OF UNIVERSITY OF MICHIGAN AND FAYE CROSBY AND KAREN JASKAR OF SMITH COLLEGE THIS NOT ME ATTITUDE IS PART OF WHAT THE RESEARCHERS CALL THE DENIAL OF PERSONAL DISADVANTAGE AN OUTLOOK SHARED BY BLACK ACTIVISTS GAY MEN AND OTHERS MS CROSBY LED STUDIES OF MEN AND WOMEN OF COMPARABLE AGE EDUCATION TRAINING AND JOB LEVEL ALTHOUGH WOMEN EARN LESS THAN MALE COUNTERPARTS AND BELIEVE THAT DISCRIMINATION IS A SOCIAL PROBLEM ONLY 8 OF THE WOMEN FEEL SHORTCHANGED FIRMS TRY TO AID WORKERS IN NATURAL DISASTERS BUT RARELY HAVE FORMAL PLANS A STRING OF DISASTERS CAPPED BY LAST WEEK'S CALIFORNIA EARTHQUAKE HAS COMPANIES THINKING ABOUT HELPING EMPLOYEES IN DES MOINES IOWA MEREDITH CORP IS SETTING UP A PHONE TREE SYSTEM TO KEEP WORKERS INFORMED IN DISASTERS THE PUBLISHER CLOSED ITS HEADQUARTERS FOR 2 1/2 WEEKS DURING LAST SUMMER'S FLOODS RYDER SYSTEM CREATES A DISASTERRELIEF FUND FOR WORKERS WITH EMPLOYEE DONATIONS MATCHED BY THE COMPANY ENRON WHICH RECENTLY HAD DOZENS OF WINDOWS IN ITS HOUSTON OFFICE TOWER BROKEN BY A TORNADO LETS WORKERS STAY HOME FOR NATURAL DISASTERS BASED ON PERSONAL NEEDS DAYTON HUDSON ALSO USES AN ASNEEDED LEAVE STANDARD AND PROVIDES WORKERS WITH GRANTS AND LOWINTEREST LOANS IN HOUSTON CITY EMPLOYEES DONATE FOOD CLOTHES AND MONEY TEXAS LAW BANS PAID TIME OFF FOR DISASTERS BECAUSE IT IS CONSIDERED A GIFT OF TAXPAYER MONEY HOT TIMES FOR TEMPS WHILE THE INDUSTRY REPRESENTS ONLY ABOUT 14 OF GROSS DOMESTIC PRODUCT IT GENERATED 15 OF NEW US JOBS FOR THE 12 MONTHS ENDED NOVEMBER THE BUREAU OF LABOR STATISTICS SAYS THE AVERAGE PARTTIMER IS WORKING ABOUT 22 HOURS A WEEK MORE THAN SIX MILLION PARTTIME WORKERS WANT MORE HOURS SAYS BLS ECONOMIST TOM NARDONE FORGET JOBS JOBS JOBS IT IS MEETINGS MEETINGS MEETINGS FOR THIS ADMINISTRATION THE LABOR DEPARTMENT SCHEDULES A PARLEY FEB 2 TO SHOWCASE WHAT WORKS IN JOB TRAINING FOR UNEMPLOYED WORKERS THEN MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL NATIONS WILL HUDDLE MARCH 14 TO START THEIR LONGRUMORED JOBS SUMMIT BOTH MEETINGS WILL BE HELD IN OR AROUND WASHINGTON ON THE ROAD TRY JOB HUNTING CAREER EXPRESS A COMBINATION BOOK STORE PERSONNEL AGENCY AND CONSULTING OFFICE OPENS IN THE HYATT REGENCY CHICAGO HOTEL THE STORE CLAIMING TO BE THE ONLY RETAIL CENTER IN THE US TO SPECIALIZE IN CAREER AND JOBRELATED RESOURCES CARRIES 3500 BOOKS AND OFFERS CAREERADVICE AND RESUMEWRITING SERVICES THE ADMINISTRATION VOWS TOUGHER WORKSITE MONITORING BUT SKEPTICS ABOUND LABOR SECRETARY REICH SAYS HIS AGENCY WILL TARGET THE WORST ACTORS TO AID SUCH VULNERABLE POPULATIONS AS CHILDREN THE ELDERLY AND LOWWAGE WORKERS FOR WOMEN AND MINORITIES IT WILL SHIFT FOCUS TO SYSTEMIC DISCRIMINATION FROM INDIVIDUAL CASES SOLICITOR TOM WILLIAMSON SAYS THOUGH HE NOTES THOSE CASES WILL BE TOUGHER TO BRING IN ALL WORKPLACES HE SAYS THE AGENCY WILL TRY A MORE STRATEGIC APPROACH RATHER THAN ONE THAT IS COMPLAINTDRIVEN SUCH TALK MAY BE JUST SMOKE PARTICULARLY GIVEN BUDGET CONSTRAINTS LABOR LAWYERS SAY THE RHETORIC IS FOR MUCH TOUGHER ENFORCEMENT SAYS GEORGE SALEM A FORMER LABOR DEPARTMENT SOLICITOR BUT I HAVEN'T NOTICED A DISCERNIBLE DIFFERENCE IN THE CASES THEY'VE BROUGHT UNION SAFETY OFFICIALS SAY OSHA HAS BEEN DRIFTING BUT THEY HOPE SAFETY CHIEF JOSEPH DEAR WILL BRING NEW TOUGHNESS OSHA IS EXPECTED TO ISSUE NEW RULES REQUIRING FIRMS TO KEEP BETTER RECORDS THAT'S THE REAL NAME OF THE GAME WHERE ENFORCEMENT IS GOING SAYS LABOR LAWYER SCOTT RAILTON EMPLOYERS WILL KEEP RECORDS THAT RAT ON THEM THE CHECKOFF CHIEF OF SELFPOLICE MIXED METAPHOR DIVISION AT A BRIEFING ON WORKPLACE ENFORCEMENT SECRETARY REICH SAYS WE HAVE TO CARRY A STICK AND MAKE SURE THERE ARE NO BAD APPLES HE QUICKLY ADDS WAIT LET ME START AGAIN LOOKING FOR WORK VIBRANT CITIES FOR HIRING INCLUDE LAS VEGAS PHOENIX CHICAGO SALT LAKE CITY MINNEAPOLIS AND DENVER DUNHILL PERSONNEL SYSTEMS SAYS THE OFFICE OF PERSONNEL MANAGEMENT PROPOSES A TWOYEAR LIMIT ON TEMPORARY WORKERS IN SHORTTERM FEDERAL JOBS HALF THE CURRENT MAXIMUM 9401250039 940125 ACTION AUTO RENTAL FILES COURT DOCUMENTS ON LIQUIDATING ASSETS SOLON OHIO ACTION AUTO RENTAL INC WHICH ENTERED CHAPTER 11 BANKRUPTCY PROTECTION A YEAR AGO FILED DOCUMENTS WITH THE US BANKRUPTCY COURT IN CLEVELAND TO PERMIT THE ORDERLY LIQUIDATION OF ITS ASSETS THE AUTO RENTAL CONCERN SAID THE DECISION TO LIQUIDATE IS A CONSENSUAL ONE WITH GENERAL MOTORS ACCEPTANCE CORP AFTER THE TWO PARTIES WERE UNABLE TO REACH AN AGREEMENT ON THE TERMS OF FUTURE FINANCING FOR THE COMPANY ACTION SAID IT COULD NOT ATTRACT ALTERNATIVE FINANCING IN DETROIT GMAC SAID IT HAD BEEN PROVIDING FINANCING FOR ACTION AUTO'S CAR FLEET FOR THE PAST DECADE AND IS THE CONCERN'S LARGEST CREDITOR GMAC THE FINANCE ARM OF GENERAL MOTORS CORP SAID IT IS OWED ABOUT 40 MILLION AND IS SEEKING TO TAKE POSSESSION OF AND LIQUIDATE SLIGHTLY MORE THAN 5000 GM VEHICLES ACTION GMAC AND THE UNSECURED CREDITORS' COMMITTEE AGREED THAT TOP ACTION MANAGERS WILL SUPERVISE THE ORDERLY WINDDOWN AND LIQUIDATION WHICH WILL BEGIN IMMEDIATELY CRAIG HONS ACTION'S PRESIDENT SAID THE COMPANY'S 500 EMPLOYEES WILL BE ABLE TO RECEIVE A FAIR SEVERANCE PACKAGE CAR RENTALS CEASED YESTERDAY ACTION SAID IT WILL HELP LONGTERM RENTERS FIND OTHER COMPANIES WHILE SHORTTERM RENTALS WILL BE ALLOWED TO RUN THEIR NORMAL COURSE ACTION AUTO SAID THAT IN THE NEXT SEVERAL WEEKS IT WILL FILE A COMPREHENSIVE PLAN OF ORDERLY LIQUIDATION WITH THE BANKRUPTCY COURT THE PLAN WILL CONTEMPLATE RESOLUTION OF ALL LITIGATION BY AND BETWEEN ACTION GMAC AND THE UNSECURED CREDITORS' COMMITTEE AND FOR PAYMENT OF ALL COSTS OF ADMINISTRATION AND ALL PRIORITY CLAIMS 9401250038 940125 POLITICS & POLICY MOSCOW BACKSLIDING MAY CAUSE CHAOS CLINTON'S TOP ADVISER ON RUSSIA WARNS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALARMED BY THE RECENT RESIGNATION OF SEVERAL KEY REFORMERS FROM THE RUSSIAN GOVERNMENT PRESIDENT CLINTON'S TOP ADVISER ON RUSSIA WARNED THAT ANY BACKSLIDING BY MOSCOW COULD LEAD TO HYPERINFLATION AND POLITICAL CHAOS THE WARNING OF STROBE TALBOTT WAS A DRAMATIC DEPARTURE FROM HIS USUALLY UPBEAT ASSESSMENTS ABOUT RUSSIA'S FUTURE AND HIS OWN EARLIER SUGGESTION THAT RUSSIA NEEDED LESS SHOCK AND MORE THERAPY THAT COMMENT MADE AFTER THE STRONG SHOWING OF RUSSIAN FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS WAS CRITICIZED BITTERLY BY RUSSIAN REFORMERS WHO CLAIMED THAT IT UNDERMINED THEIR EFFORTS TO MAKE POLITICALLY PAINFUL BUT NECESSARY REFORMS AFTER TOUTING RUSSIA AS ITS NO 1 FOREIGNPOLICY SUCCESS THE CLINTON ADMINISTRATION NOW IS FINDING ITS POLICY CAPTIVE TO OVERSEAS DEVELOPMENTS THAT IT NEVER COULD HAVE EXPECTED TO CONTROL WHILE INSISTING THAT AMERICAN BILATERAL ASSISTANCE SHOULDN'T BE LINKED TO RUSSIA'S FUTURE MACROECONOMIC PERFORMANCE MR TALBOTT SAID THE US WOULD ONLY SUPPORT INCREASED MULTILATERAL LENDING TO RUSSIA INCLUDING FUNDS TO EASE THE SOCIAL BURDEN FOR ORDINARY RUSSIANS IF MOSCOW EXERCISED FISCAL AND MONETARY RESPONSIBILITY AT THE SAME TIME IT ISN'T CLEAR HOW MUCH OF AN EFFECT THE WARNING WILL HAVE ON MOSCOW'S DECISION MAKING RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN SAID RECENTLY THAT HIS GOVERNMENT WAS ABANDONING MARKET ROMANTICISM AND WOULD NOW CONCENTRATE ON BOOSTING PRODUCTION IN OLDSTYLE COMMUNIST HEAVY INDUSTRIES A COURSE US OFFICIALS FEAR WILL LEAD TO LARGER BUDGET DEFICITS AND RAGING INFLATION HOWEVER MR CHERNOMYRDIN ALSO HAS INVITED AN INTERNATIONAL MONETARY FUND TEAM TO MOSCOW THIS WEEK TO HELP FORMULATE A NEW RUSSIAN BUDGET A CLEAR BID TO FREE UP 15 BILLION IN PROMISED FUNDS THE CLINTON ADMINISTRATION IS HOLDING OUT THE PROMISE OF INCREASED MULTILATERAL LENDING AS AN INCENTIVE FOR CONTINUED REFORM BUT MANY RUSSIANS ARE SKEPTICAL THAT THE LENDERS WILL EVER DO ENOUGH TO JUSTIFY THE PAIN OF CONTINUED CHANGE MR TALBOTT AND BRIAN ATWOOD HEAD OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT SPENT A GOOD PART OF THE HEARING DEFENDING THE CLINTON ADMINISTRATION'S OVERALL POLICY TOWARD RUSSIA PARTICULARLY THE MANAGEMENT OF THE 25 BILLION FOREIGNAID PROGRAM FOR THE FORMER SOVIET REPUBLICS SUBCOMMITTEE CHAIRMAN PATRICK LEAHY D VT SUGGESTED THAT THE CLINTON ADMINISTRATION WAS GETTING TOO CLOSE TO PRESIDENT BORIS YELTSIN AND NEGLECTING OTHER IMPORTANT REFORMERS AND SEVERAL SENATORS RAISED CONCERNS THAT THE US WAS ALLOWING RUSSIA TO DICTATE US FOREIGN POLICY PARTICULARLY ON THE QUESTION OF WHETHER TO BRING EASTERN EUROPE INTO THE NORTH ATLANTIC TREATY ORGANIZATION SPEAKING AFTER THE HEARING MR ATWOOD EXPRESSED CONCERN THAT THE SUBCOMMITTEE'S DETAILED QUESTIONING COULD SLOW DOWN FUTURE DISBURSEMENT OF AID WE CAN GET THEM THE DETAIL THEY ASK FOR BUT IT WILL SLOW DOWN THE PROCESS CONSIDERABLY HE SAID 9401250037 940125 PRICING HEALTH CARE THERE IS NO HEALTH CARE CRISIS BY IRWIN M STELZER TONIGHT PRESIDENT CLINTON IS EXPECTED TO GIVE A PROMINENT PLACE TO HIS HEALTH CARE REFORM IN THE STATE OF THE UNION MESSAGE THE DEBATE OVER HIS PLAN HAS BEEN DOMINATED BY POLICY WONKS WHO LIKE THE PRESIDENT HIMSELF ARE NEVER SO HAPPY AS WHEN THEY ARE PORING OVER THE DETAILS LOST IN ALL THIS HAS BEEN THE LARGE QUESTION OF WHETHER A MASSIVE TRANSFORMATION OF OUR HEALTH CARE SYSTEM IS NECESSARY THE IDEA THAT THERE IS A SEVERE HEALTH CARE CRISIS STEMS FROM FOUR SOURCES THE FIRST IS THE INSECURITY GENERATED BY THE MOST RECENT RECESSION MOST AMERICANS' HEALTH INSURANCE IS LINKED TO THEIR JOBS WITH EMPLOYERS PAYING ABOUT 86 OF THE TOTAL COST LOSE YOUR JOB LOSE YOUR COVERAGE GET A NEW JOB AND YOU MIGHT NOT GET COVERAGE IF YOU HAVE A HEALTH PROBLEM THEN THERE IS THE CONCERN OVER COSTS ALREADY CLAIMING 14 OF OUR GROSS NATIONAL PRODUCT A FIGURE HIGH BY INTERNATIONAL STANDARDS HEALTH CARE COSTS HAVE BEEN RISING MANY PEOPLE HAVE CONVINCED THEMSELVES THAT THIS WILL LEAD TO THE IMPOVERISHMENT OF AMERICA ADDITIONAL PRESSURE FOR REFORM COMES FROM THE NOTION THAT EVERYONE SHOULD HAVE HEALTH INSURANCE AS A MATTER OF RIGHT SINCE AT LEAST 37 MILLION AMERICANS ARE NOW WIDELY SAID TO BE WITHOUT COVERAGE THE SYSTEM MUST BE FAILING THE FOURTH CONTRIBUTOR TO THE SENSE OF CRISIS IS THE LIBERAL BIAS OF THE MAJOR MEDIA THIS HELPS EXPLAIN ONE OF THE GREAT ANOMALIES IN THE DEBATE ALTHOUGH 75 OF AMERICANS HAVE BEEN CONVINCED THAT THERE IS A CRISIS 80 SIMULTANEOUSLY REPORT THEMSELVES AS VERY OR SOMEWHAT SATISFIED WITH THEIR OWN HEALTH CARE ALL THIS ADDS UP TO A GREAT POLITICAL OPPORTUNITY FOR THE DEMOCRATS TO WED THE MIDDLE CLASS TO THE PARTY IT NEEDS A MODERN VERSION OF ROOSEVELT'S SOCIAL SECURITY SYSTEM ENTER HEALTHCARE REFORM UNFORTUNATELY FOR THE PRESIDENT'S POLITICAL STRATEGISTS HOWEVER THE CRISIS ON WHICH THE CASE FOR THIS REFORM RESTS IS AN ARTIFICIAL ONE AND THE INTENDED BENEFICIARIES ARE ITS BIGGEST LOSERS TAKE THE MUCHHERALDED 14 FIGURE THE APPROXIMATELY 940 BILLION AMERICANS SPENT ON HEALTH CARE IN 1993 DID INDEED REPRESENT A BIT MORE THAN 14 OF THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES BUT BY WHAT STANDARD IS THAT TOO MUCH IF WE PREFER TO DEVOTE A LARGER PORTION OF OUR INCOMES TO TOPQUALITY HEALTH CARE THAN DO OTHER NATIONS WHAT IS WRONG WITH THAT AFTER ALL WE DO NOT SETTLE FOR THE HOUSING STANDARDS THAT PREVAIL IN POORER COUNTRIES WE INSIST ON CENTRAL HEATING AND AIRCONDITIONING THE LATTER NOW INSTALLED IN NEARLY HALF OF THE HOMES OF EVEN THOSE WE CLASSIFY AS POOR NOR ARE TINY CARS WITH MECHANICAL CLUTCHES COMMON ELSEWHERE THE STUFF OF THE AMERICAN DREAM NEITHER IS SPARTAN HEALTH CARE INTERNATIONAL COMPARISONS ALSO GIVE NO WEIGHT TO DIFFERENCES IN THE QUALITY OF SERVICE THE CONGRESSIONAL QUARTERLY CITES THE FACT THAT JAPAN'S GOVERNMENT PLAYS A MUCH GREATER ROLE IN PRIVATE HEALTHCARE DELIVERY THAN DOES THE US GOVERNMENT TO EXPLAIN HOW JAPAN KEEPS ITS COSTS CONSIDERABLY LOWER THAN THOSE OF THE US NO MENTION OF WHAT FRED BARNES CALLS JAPANESE ASSEMBLYLINE TREATMENT FROM DOCTORS WHO SEE AN AVERAGE OF 49 PATIENTS A DAY AND WHO PERFORM GYNECOLOGICAL EXAMINATIONS ON SCORES OF WOMEN ASSEMBLED IN A SINGLE ROOM AS PHYSICIANS SCRAMBLE TO MAINTAIN INCOMES IN THE FACE OF TOOLOW PERCAPITA REIMBURSEMENTS BECAUSE PAYMENT IN JAPAN IS BASED ON PATIENT VISITS THE DOCTOR KEEPS THE AVERAGE LENGTH TO FIVE MINUTES AND THE JAPANESE ON AVERAGE MAKE 12 VISITS A YEAR OR ABOUT THREE TIMES AS MANY AS AMERICANS WHOSE AVERAGE VISIT LENGTH IS 15 TO 20 MINUTES THESE DECREASES IN CONVENIENCE FOR PATIENTS AND INCREASES IN PATIENT TIME AND TRAVEL COSTS POINTS OUT PATRICIA DANZON OF THE WHARTON SCHOOL ARE EXCLUDED FROM THE NATIONAL HEALTH ACCOUNTS AND FROM PUBLIC VISIBILITY INTERNATIONAL COST COMPARISONS ALSO IGNORE QUEUING AND OTHER FORMS OF RATIONING THAT REDUCE RECORDED COSTS BY FORCIBLY LIMITING THE AVAILABILITY OF THE SERVICE JOSEPH WHITE A BROOKINGS INSTITUTION RESEARCHER WHOSE COMPARISON OF AMERICA'S SYSTEM WITH THOSE OF SIX OTHER NATIONS LEADS HIM TO CONCLUDE THAT AMERICA'S HEALTHCARE SYSTEM MUST BE REFORMED NEVERTHELESS CONCEDES THAT OTHER COUNTRIES HAVE RESTRICTED CAPACITY AND FORCED PATIENTS TO ENDURE DELAYS THAT WOULD BE INTOLERABLE IN AMERICA AND GERMANY ACHIEVES ITS LOW COSTS BY LIMITING MALPRACTICE SUITS ESCHEWING EXTRAORDINARY LIFEPROLONGING MEASURES FOR THOSE JUDGED TO BE TERMINALLY ILL BUYING FEWER PIECES OF HIGHTECHNOLOGY EQUIPMENT THAN AMERICANS TYPICALLY USE AND BY PRICE CONTROLS EVEN SO COSTS ARE SOARING AND THE INSURANCE FUNDS ARE BROKE DESPITE PREMIUMS THAT COME TO 13 OF PAYROLLS INTERNATIONAL COMPARISONS OMIT SOCIETAL ATTITUDES THE HIGH EXPENDITURES IN THE US REFLECT A BASIC AMERICAN VALUE DAMN THE COSTS SAVE LIVES AND USE EXPENSIVE TECHNOLOGIES WHENEVER NECESSARY DON'T BLAME THIS ON YOUR DOCTOR EZEKIEL EMANUEL OF THE HARVARD MEDICAL SCHOOL NOTES THAT FEWER THAN ONE OUT OF 10 PHYSICIANS SURVEYED WOULD PUT GRANDMA ON A RESPIRATOR IF SHE HAD A STROKE WHEREAS 40 OF FAMILY MEMBERS WOULD HIGH HEALTH CARE COSTS IN AMERICA ALSO REFLECT ANOTHER DISTINCTIVE FEATURE OF OUR SOCIETY THE SOCIAL PATHOLOGY OF OUR UNDERCLASS PRESIDENT CLINTON POINTED THIS OUT IN OCTOBER TO AN ASSEMBLY OF DOCTORS AT JOHNS HOPKINS WE'LL NEVER GET THE COST OF HEALTH CARE DOWN TO WHERE IT IS IN OTHER COUNTRIES AS LONG AS WE HAVE HIGHER RATES OF TEEN PREGNANCIES AND HIGHER RATES OF LOWBIRTHWEIGHT BIRTHS AND HIGHER RATES OF AIDS AND MOST IMPORTANT OF ALL HIGHER RATES OF VIOLENCE AND HE MIGHT HAVE ADDED NOTHING IN HIS OWN HEALTH CARE PLAN ADDRESSES ANY OF THOSE PROBLEMS THE SECOND BASIS OF COMPARISON OFFERED TO SUPPORT THE CONTENTION THAT WE ARE SPENDING TOO MUCH ON HEALTH CARE IS OUR OWN PAST IN 1960 WE DEVOTED 5 OF GNP TO HEALTH CARE BY 1993 WE WERE UP TO 14 YET WE DO NOT COMPARE THE PRICE OF A MODERN AUTOMOBILE WITH THAT OF A MODEL T AND THEN COMPLAIN ABOUT HOW MUCH MORE THE NEW CAR COSTS SO WHY IGNORE QUALITY CHANGES IN MEDICAL CARE AN OPERATION TO REMOVE CATARACTS ONCE INVOLVED A HOSPITAL STAY OF TWO TO FOUR DAYS AND AN EVEN LONGER RECUPERATIVE PERIOD AT HOME THAT SURGERY IS NOW TYPICALLY DONE ON AN OUTPATIENT BASIS AS IRA COHEN FORMERLY CHIEF OF THE DIVISION OF GENERAL MEDICINE AT NEW YORK CITY'S BETH ISRAEL HOSPITAL TELLS US IN THE DAYS WHEN THE ELECTROCARDIOGRAM WAS THE SOLE DIAGNOSTIC TOOL THE VICTIM OF A HEART ATTACK COULD COUNT ON A FOUR TO SIXWEEK HOSPITAL STAY NOW IMPROVED DIAGNOSTIC TECHNIQUES AND EQUIPMENT PERMIT THE DOCTOR TO DISCHARGE THE TYPICAL HEART PATIENT IN A WEEK OR 10 DAYS YET ASTONISHINGLY THE REDUCTIONS IN SUFFERING AND LOST OUTPUT NOWHERE APPEAR IN OUR ACCOUNTING OF TRENDS IN HEALTH CARE COSTS NOR CAN WE CREDIT THE PROJECTIONS THAT BRING US FROM 14 TO 26 OF GNP BY 2030 SUCH PROJECTIONS ASSUME THAT RECENT TRENDS IN HEALTH CARE PRICES AND IN THE VOLUME OF SERVICES CONSUMED WILL CONTINUE INDEFINITELY BUT THIS IS UNLIKELY THE HEALTH CARE INDUSTRY IS OFFERING AN UNPRECEDENTED RANGE OF NEW PRODUCTS THEY WILL GO THROUGH A CYCLE OF RAPID GROWTH FOLLOWED BY FALLING PRICES AND COSTS AS COMPETITION AMONG SUPPLIERS EMERGES CONSUMERS BECOME MORE DISCRIMINATING AND COSTSAVING PRODUCTION AND APPLICATION TECHNIQUES ARE DEVELOPED IN ADDITION IF FACED WITH THE COSTS OF THEIR DECISIONS CONSUMERS MIGHT ADJUST REMEMBER THE ENERGY CRISIS IF THERE IS NO CRISIS IN HEALTH CARE COSTS IS THERE ONE IN INSURANCE COVERAGE HERE WE COME TO THE SECOND MAJOR STATISTIC DRIVING THE HEALTHCARE DEBATE AT SOME POINT IN 1991 THE LAST YEAR FOR WHICH COMPREHENSIVE DATA ARE AVAILABLE 37 MILLION PEOPLE LACKED MEDICAL INSURANCE IT SHOULD BE NOTED THAT THESE CITIZENS ARE NOT DENIED HEALTH CARE EMERGENCY ROOMS PROVIDE CARE TO ALL COMERS IN FACT NONPROFIT HOSPITALS 88 PERCENT OF THOSE IN THE US CANNOT LEGALLY TURN AWAY ANY PATIENT NEEDING MEDICAL CARE OR UNREASONABLY DENY ACCESS TO ALL THE MODERN TECHNOLOGY HOSPITALS HAVE AVAILABLE AND NOT JUST FOR THE DURATION OF THE EMERGENCY THE HOSPITAL IS OBLIGED TO SEE THE TREATMENT THROUGH PERCAPITA HEALTH CARE SPENDING ON THE UNINSURED PREMEDICARE POPULATION IS ABOUT 60 OF PERCAPITA EXPENDITURES ON THE INSURED POPULATION A LEVEL SUMPTUOUS BY THE STANDARDS OF OTHER INDUSTRIAL COUNTRIES NONETHELESS IF THE 37 MILLION FIGURE DID MEAN WHAT IT IS OFTEN TAKEN TO MEAN THAT 15 OF OUR POPULATION LIVES WITH THE UNNERVING AND CONTINUAL THREAT OF BEING UNABLE TO PAY FOR MEDICAL CARE THERE WOULD CERTAINLY BE GROUNDS FOR REVISING THE WAY WE PROVIDE MEDICAL SERVICES FORTUNATELY THERE IS LESS OF A PROBLEM HERE THAN MEETS THE EYE SOME OF THE UNINSURED ARE BETWEEN JOBS SOME ARE STUDENTS ENTERING THE LABOR MARKET KATHERINE SWARTZ OF THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH NOTES THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THE CHRONICALLY UNINSURED GROUP IN OUR SOCIETY NUMBERS CLOSER TO 55 MILLION THAN 37 MILLION PEOPLE AND PROBABLY FEWER THAN 55 MILLION ONLY 1 OF THOSE UNDER AGE 65 ARE UNINSURABLE ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE MORE THAN HALF OF THE UNINSURED ARE IN FAMILIES HEADED BY FULLTIME WORKERS 40 HAVE INCOMES IN EXCESS OF 20000 AND 10 HAVE INCOMES IN EXCESS OF 50000 ONLY 29 ARE BELOW THE POVERTY LEVEL AND THOSE WITH INCOMES BELOW 20000 SPEND SEVERAL TIMES AS MUCH ON ENTERTAINMENT ALCOHOL AND TOBACCO AS THEY DO ON HEALTH CARE FURTHERMORE 37 OF THE UNINSURED ARE UNDER AGE 25 A GENERALLY HEALTHY GROUP FOR WHOM HEALTH INSURANCE IS OFTEN NOT A COSTEFFECTIVE BUY IF WE PUT ALL THIS TOGETHER WE COME UP WITH A FIGURE OF PERHAPS 3 OF THE POPULATION WHO ALTHOUGH ABLE TO OBTAIN HEALTH CARE CANNOT OBTAIN AFFORDABLE HEALTH INSURANCE SHOULD WE PERFORM RADICAL SURGERY ON OUR HEALTH CARE SYSTEM FOR THE SAKE OF THAT 3 BEFORE ANSWERING WITH A RESOUNDING NO WE HAVE TO CONSIDER THE POSSIBILITY THAT WHEN THE UNINSURED ARE TREATED IN A HOSPITAL AND CANNOT PAY THE COST OF THAT TREATMENT IS LOADED ONTO THE REST OF US BUT EVEN IF CROSSSUBSIDIZATION FROM THE INSURED TO THE UNINSURED DOES OCCUR THE CURE IS SIMPLE SUBSIDIZE INSURANCE FOR THE TRULY POOR AND COMPEL PAYMENT BY THE VOLUNTARILY UNINSURED THERE ARE REFORMS THAT COULD AND SHOULD BE MADE WITHIN THE CONTEXT OF OUR PRESENT SYSTEM IN ADDITION TO SUBSIDIZING THE INVOLUNTARILY UNINSURED THE MOST IMPORTANT IS TO MAKE COVERAGE PORTABLE SO THAT THE LOSS OF A JOB DOES NOT DEPRIVE A WORKER OF HIS INSURANCE SUCH TWEAKS TO THE SYSTEM WOULD AVOID THE DISASTER IN STORE FOR US IF WE FOLLOW THE CLINTONS DOWN THE PATH TO A HEALTH CARE SYSTEM PRESIDED OVER BY THE SAME PEOPLE ALREADY DOING SUCH A WONDERFUL JOB DELIVERING OUR MAIL MR STELZER IS DIRECTOR OF REGULATORY POLICY STUDIES AT THE AMERICAN ENTERPRISE INSTITUTE THIS ARTICLE IS ADAPTED FROM THE CURRENT ISSUE OF COMMENTARY