NEW YORK TELECOMMUNICATIONS INC SAID ITS PLANNED PURCHASE OF A MILLION NEW TELEVISION SETTOP CONVERTERS WILL BE DELAYED BY NEARLY A YEAR BECAUSE INDUSTRY TECHNICAL STANDARDS GOVERNING THEIR OPERATION HAVEN'T BEEN FINALIZED SKEPTICS SAID THE DELAY AFFIRMS THEIR BELIEF THAT THE MUCHBALLYHOOED INFORMATION SUPERHIGHWAY WILL TAKE FAR LONGER COST FAR MORE AND ATTRACT FAR FEWER VIEWERS THAN IS GENERALLY BELIEVED THE NEWGENERATION CONVERTER BOXES ARE A CRITICAL PART OF THE CABLETV INDUSTRY'S PROMISE TO DELIVER MOVIES ON DEMAND COMPUTER SERVICES AND AN ARRAY OF INTERACTIVE GAMES AND SERVICES THE DELAY IN THE BOXES' DEPLOYMENT BY TCI THE NATION'S LARGEST AND MOST POWERFUL CABLE OPERATOR SIGNALS A BROADER DELAY FOR THE REST OF THE CABLE INDUSTRY THE HOLDUP INVOLVES A CORE TECHNOLOGY KNOWN AS DIGITAL COMPRESSION WHICH CAN EFFECTIVELY YIELD A TENFOLD INCREASE IN THE NUMBER OF CABLE CHANNELS THAT AN OPERATOR CAN SEND TO A SUBSCRIBER'S HOME TCI HAD ANNOUNCED ITS ORDER OF THE DIGITAL COMPRESSION BOXES AMID MUCH FANFARE IN DECEMBER 1992 IT HAD PLANNED TO ROLL THEM OUT IN THE FIRSTQUARTER OF THIS YEAR NOW THE COMPANY MUST WAIT UNTIL THE END OF THE YEAR TO BEGIN DEPLOYING THE FIRST OF THE BOXES WHICH WILL BE MANUFACTURED BY GENERAL INSTRUMENT CORP'S JERROLD INSTRUMENT SUBSIDIARY AND BY SCIENTIFICATLANTA INC LARGER VOLUMES AS MANY AS 100000 BOXES WON'T GO OUT UNTIL THE BEGINNING OF 1995 TCI AND ITS MANUFACTURERS ARE WAITING FOR STANDARDS TO BE FINALIZED BY MPEG OR THE MOVING PICTURE EXPERTS GROUP AN INTERNATIONAL BODY SET UP TO DESIGN STANDARDS FOR THE WAY ELECTRONIC PRODUCTS WORK WHEN THEY RECEIVE DIGITALLY COMPRESSED SIGNALS IT'S A COMPLEX PROCESS OF NEGOTIATIONS INVOLVING HUNDREDS OF COMPANIES AND INDUSTRIES FROM DOZENS OF COUNTRIES AROUND THE WORLD SAID ROBERT THOMSON A SENIOR VICE PRESIDENT AT TCI WE'RE SITTING ON THE SIDELINES WAITING FOR THIS DELAY TO END THE DELAY IN SETTING STANDARDS COULD TRIGGER A RIPPLE EFFECT ACROSS SEVERAL INDUSTRIES UNTIL A DIGITALCOMPRESSION PROTOCOL IS SET TCI CAN'T BUY LARGE VOLUMES OF DIGITAL EQUIPMENT AND UNTIL LARGE VOLUMES OF EQUIPMENT ARE MANUFACTURED PRICES WILL REMAIN HIGH WHICH WILL SLOW THE SPREAD OF THE DIGITAL REVOLUTION THE MPEG GROUP HAS BEEN TRYING TO FINISH WRITING A STANDARD KNOWN IN INDUSTRY PARLANCE AS MPEG II BUT THE PROCESS FOR BUILDING A CONSENSUS IS FRAUGHT WITH COMPLICATIONS EACH COMPANY OR COUNTRY HAS ITS OWN POLITICAL AND FINANCIAL MOTIVATIONS FOR LOBBYING THE GROUP FOR VARIOUS CHANGES A DIRECTBROADCAST SATELLITE COMPANY FOR EXAMPLE HAS A DIFFERENT AGENDA THAN A CABLE COMPANY FURTHERMORE THE STANDARDS COVER SEVERAL ASPECTS OF THE TECHNOLOGY SUCH AS SOUND AND VIDEO THE BOTTOM LINE IS THAT OUR CUSTOMERS INCLUDING TCI COMCAST CORP AND COX CABLE A UNIT OF COX ENTERPRISES INC HAVE ALL CONCLUDED THEY WOULD LIKE THE MPEG II OPTION IN THEIR DIGITAL CONVERTERS BEFORE WE FINISH THEM SAID DAN MOLONEY DIRECTOR OF SUBSCRIBER PRODUCTS FOR GENERAL INSTRUMENT 9401210093 940121 MARKETING & MEDIA DOW JONES SETS SATELLITE ACCORD WITH HUBBARD NEW YORK DOW JONES & CO AND HUBBARD BROADCASTING INC SAID DOW JONES HAS ACQUIRED A MINORITY INTEREST IN AND WILL PROVIDE PROGRAMMING TO HUBBARD'S NEW US SATELLITE BROADCASTING VENTURE A NATIONAL DIRECTBROADCAST SATELLITE SERVICE US SATELLITE BROADCASTING INC ST PAUL MINN PLANS TO DELIVER MORE THAN 150 CHANNELS OF ENTERTAINMENT AND INFORMATION TO VIEWERS WHO WILL RECEIVE THE SIGNALS ON 18INCH DISH ANTENNAS LINKED TO SPECIAL HOME RECEIVERS PETER SKINNER SENIOR VICE PRESIDENT OF DOW JONES WHICH PUBLISHES THE WALL STREET JOURNAL SAID DOW JONES WILL BE THE EXCLUSIVE PROVIDER OF BUSINESS AND FINANCIAL NEWS TO THE NEW SERVICE HE DECLINED TO SPECIFY THE SIZE OF THE INVESTMENT BUT SAID IT WAS MULTIMILLION DOLLAR IN SIZE HE SAID THE DOW JONES PROGRAMMING WILL RANGE FROM DAILY NEWS REPORTS ON THE US SATELLITE NEWS CHANNEL TO INFORMATIONAL AND INSTRUCTIONAL BROADCASTS INCLUDING PAYPERVIEW PROGRAMMING THE PROGRAMS WILL PARALLEL WHAT YOU SEE IN THE WALL STREET JOURNAL SUCH AS YOUR MONEY MATTERS OR THE INVESTMENT ROUND TABLES IN BARRON'S MAGAZINE HE SAID US SATELLITE BROADCASTING PLANS TO BEGIN OPERATING A DIGITAL DIRECTBROADCAST SATELLITE SERVICE IN APRIL PROVIDING A WIDE VARIETY OF ENTERTAINMENT AND INFORMATION TELEVISION PROGRAMMING US SATELLITE ALREADY HAS REACHED DISTRIBUTION AGREEMENTS WITH VIACOM INC CHANNELS NICKELODEON MTV AND VH1 AS WELL AS VIACOM PAY CHANNELS SHOWTIME MOVIE CHANNEL AND FLIX AND TIME WARNER INC'S HOME BOX OFFICE AND CINEMAX THE BROADCASTS WILL BE DELIVERED FROM THE FIRST OF TWO SATELLITES RECENTLY LAUNCHED BY US SATELLITE AND ITS PARTNER HUGHES COMMUNICATIONS INC A SUBSIDIARY OF GENERAL MOTORS CORP THE SECOND SATELLITE WILL BE LAUNCHED LATE THIS YEAR US SATELLITE'S PROGRAMMING WILL BE BROADCAST SEPARATELY FROM PROGRAMMING PLANNED BY HUGHES THE VENTURE IS EXPECTED TO BE THE FIRST REAL THREAT TO CABLE TV COMPANIES BY PROVIDING CUSTOMERS AN ALTERNATIVE METHOD OF RECEIVING TV PROGRAMMING HOWEVER USERS WILL HAVE TO MAKE AN UPFRONT INVESTMENT IN HARDWARE THE SATELLITE DISH INITIALLY HAS BEEN ESTIMATED TO COST 700 AS WELL AS PAY MONTHLY SERVICE COSTS THOMSON CONSUMER ELECTRONICS INC WILL BEGIN DISTRIBUTING THE HOME RECEIVING EQUIPMENT UNDER THE RCA BRAND THROUGH RETAIL OUTLETS BEGINNING IN APRIL HUBBARD BROADCASTING OWNS NINE TV STATIONS TWO RADIO STATIONS TWO TV PRODUCTION COMPANIES AND A SATELLITE NEWSGATHERING SERVICE DOW JONES ALSO PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS DOW JONES SHARES CLOSED YESTERDAY AT 38 OFF 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEWS WAS ANNOUNCED AFTER THE CLOSE OF TRADING 9401210092 940121 CREDIT MARKETS MEXICAN BANK'S GLOBAL BOND OFFER FINDS BUYERS BUT DEMAND TRAILS RECENT BIG ARGENTINE ISSUE BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DESPITE WORRIES ABOUT POLITICAL VIOLENCE MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR OR BANCOMEXT MANAGED TO FIND BUYERS FOR 1 BILLION OF GLOBAL NOTES THE ISSUE ONLY THE SECOND GLOBAL NOTE OFFERING FROM A LATIN AMERICAN ISSUER WAS LAUNCHED YESTERDAY AND IS SLATED TO BE FINALIZED THIS MORNING BUT DUE TO WORRIES ABOUT POLITICAL VIOLENCE IN MEXICO DEMAND FOR THE MEXICAN BANK DIDN'T SEEM TO BE NEARLY AS STRONG AS FOR THE FIRST GLOBAL NOTE OFFERING FROM A LATIN AMERICAN ISSUER ARGENTINA'S 1 BILLION SALE IN EARLY DECEMBER GLOBAL BONDS ARE USUALLY ISSUED SIMULTANEOUSLY IN ALL THE WORLD'S MAJOR MARKETS AND ARE OFTEN SOLD IN AMOUNTS OF 1 BILLION OR MORE THE ADVANTAGE TO THE ISSUER IS THE ABILITY TO GARNER LOWER INTEREST RATES BECAUSE IT IS EASIER FOR MORE INVESTORS TO BUY THEM THE ADVANTAGE TO INVESTORS IS THAT A GLOBAL BOND IS SUPPOSED TO BE MORE LIQUID OR EASILY TRADED THAN A BOND DESIGNED TO TRADE IN JUST ONE MARKET THE COMBINATION OF GREATER LIQUIDITY AND A RELATIVELY ATTRACTIVE YIELD MAKE FOR AN APPEALING BUY FOR AMERICAN INVESTORS LOOKING FOR HIGHER YIELDS BANCOMEXT IS EXPECTED TO SELL THE 10YEAR NOTES AT A YIELD OF 160 TO 165 PERCENTAGE POINTS ABOVE THE US TREASURY'S 10YEAR NOTE WHICH YIELDED 566 LATE YESTERDAY COMPARED WITH 571 ON WEDNESDAY THE YIELD ON THE 30YEAR TREASURY BOND DROPPED TO 626 FROM 629 ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH 1000 FACE VALUE JUST HOW FAR MEXICO HAS COME IN THE EYES OF AMERICAN INVESTORS CAN BE MEASURED BY THE NARROWING YIELD SPREADS OF MEXICAN ISSUES OVER COMPARABLE US TREASURY ISSUES JUST A COUPLE OF YEARS AGO IT WAS NOT UNUSUAL TO SEE MEXICAN NOTES AND BONDS COMING AT SPREADS OF FOUR TO FIVE PERCENTAGE POINTS THE SPREAD ON YESTERDAY'S OFFERING BY BANCOMEXT WAS ORIGINALLY EXPECTED TO BE SOMETHING BETWEEN 150 AND 155 PERCENTAGE POINTS JUST SIX MONTHS AGO BANCOMEXT SOLD SECURITIES IN THE US WHICH YIELDED 215 PERCENTAGE POINTS MORE THAN COMPARABLE US TREASURYS BANCOMEXT IS MEXICO'S STATEOWNED TRADE BANK BUT SYNDICATE OFFICIALS CITED RECENT TURMOIL IN THE SOUTHERN MEXICAN STATE OF CHIAPAS AND RUMORS THAT A LARGE POSITION IN MEXICAN BONDS WAS BEING UNWOUND BY A JAPANESE INSTITUTION AS FACTORS WHICH HELPED WEAKEN DEMAND FOR THE OFFERING AND FORCE THE YIELD SPREAD TO WIDEN EVEN AT THE CURRENT SPREAD HOWEVER THE OFFERING IS ONE OF THE MOST TIGHTLY PRICED TO COME FROM A LATIN AMERICAN BORROWER TO DATE IT IS RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP THE NOTES WERE SOLD THROUGH JOINT LEAD UNDERWRITERS GOLDMAN SACHS & CO AND MERRILL LYNCH & CO COUNTRIES GET HOT AND COUNTRIES GET A LITTLE COOL SAID GERARD FINNERAN A PORTFOLIO MANAGER AT TRUST COMPANY OF THE WEST A BIG INVESTOR IN MEXICO AT LEAST FOR A FEW WEEKS THERE PEOPLE WERE CONCERNED ABOUT MEXICO AND THE PROBLEMS THEY WERE PERCEIVED TO BE HAVING HE SAID BUT IN TERMS OF CREDITS MEXICO WITH THE NORTH AMERICAN FREE TRADE AGREEMENT CLEARLY IS THE BEST CREDIT IN LATIN AMERICA HE ADDED ONE SYNDICATE MEMBER SAID ABOUT A THIRD OF THE NOTES HAD BEEN SOLD IN EUROPE AND THE FAR EAST WITH THE REST GOING TO US INVESTORS CORPORATE ISSUERS SOLD NEARLY 2 BILLION OF NEW NOTES AND BONDS YESTERDAY INCLUDING A 100 MILLION OFFERING FROM MITCHELL ENERGY & DEVELOPMENT CORP A 300 MILLION DEAL FROM GULF CANADA RESOURCES LTD AND A 100 MILLION DEBT OFFERING FROM WHITMAN CORP INVESTORS CONTINUE TO CLAMOR FOR CORPORATE BONDS SYNDICATE OFFICIALS SAID ANYTHING THAT COMES TO MARKET WITH A REASONABLE PRICE IS GOING TO BE A FOODFIGHT SAID ONE SYNDICATE OFFICIAL HE SAID INVESTORS ARE NOT RECEIVING EVEN CLOSE TO THE AMOUNT OF BONDS THEY ARE REQUESTING IN NEW ISSUES STRONG INVESTOR DEMAND FOR CORPORATE BONDS IS ALSO APPARENT IN THE INVESTMENTGRADE SECONDARY MARKET WHERE TRADING DURING THE SESSION WAS LIGHT AND PRICES FOLLOWED TREASURYS HIGHER INVESTORS PILED CASH INTO SHORTTERM AND INTERMEDIATETERM TREASURY SECURITIES BETTING THAT THE UNSEASONABLY COLD WEATHER ACROSS MUCH OF THE US COULD PUT A CHILL ON ECONOMIC ACTIVITY MOST TREASURY SECURITIES POSTED PRICE GAINS WITH THE BENCHMARK 30YEAR BOND RISING MORE THAN 3/8 POINT TO 99 23/32 THE 10YEAR NOTE RISING 3/8 POINT TO 100 18/32 AND THE SEVENYEAR NOTE RISING NEARLY 3/8 POINT TO 101 20/32 TRADERS SAID THAT INVESTORS FLUSH WITH CASH TOOK COMFORT IN THE ARGUMENT THAT THE COLD SNAP ALONG WITH THE EARTHQUAKE IN SOUTHERN CALIFORNIA COULD RESTRAIN ECONOMIC ACTIVITY AFTER ITS HEATED FOURTHQUARTER PERFORMANCE IF ECONOMIC GROWTH DOES SLOW FROM WHAT ANALYSTS SAY MIGHT HAVE BEEN A 5 RATE OF GROWTH AT THE END OF 1993 THE FEDERAL RESERVE WILL NOT HAVE TO RAISE SHORTTERM INTEREST RATES INVESTORS REASONED PEOPLE HAVE DECIDED THAT THE UPCOMING ECONOMIC REPORTS WILL REFLECT SOME SOFTNESS BECAUSE OF THE COLD WEATHER AND THAT CREATES THE PERCEPTION THAT THE FED MIGHT HESITATE A BIT MORE BEFORE PULLING THE TRIGGER SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS ANALYSTS AGREED THAT WHEN THE ECONOMIC FIGURES FOR JANUARY ARE RELEASED NEXT MONTH THEY WILL LIKELY BE ON THE SOFT SIDE THERE IS NOT VERY MUCH ECONOMIC ACTIVITY OCCURRING EAST OF THE MISSISSIPPI OR IN LOS ANGELES SAID ALAN LEVENSON MONEY MARKET ECONOMIST AT UBS SECURITIES INC WITH SENTIMENT LEANING TOWARD BULLISH FOR THE TIME BEING INVESTORS OPTED TO IGNORE NEWS OF A STRONGER HOUSING SECTOR AND INSTEAD CHOSE TO FOCUS ON FIGURES WITH HINTS OF SOFTNESS WHEN THE COMMERCE DEPARTMENT REPORTED YESTERDAY MORNING THAT HOUSING STARTS ROSE A GREATERTHANFORECAST 62 THERE WAS ONLY A BRIEF SELLOFF IN THE END THE MARKET PAID MORE ATTENTION TO AN UNEXPECTED RISE IN INITIAL UNEMPLOYMENT CLAIMS OF 23000 TO A LEVEL OF 380000 FOR THE WEEK ENDED JAN 15 THE REPORTS YESTERDAY MORNING WERE CONFLICTING SAID MR KARYDAKIS OF FIRST CHICAGO THE MARKET WAS CONFUSED FOR A WHILE BUT AS THE DAY WORE ON PEOPLE DECIDED TO THROW THEIR LOT BEHIND THE RISE IN CLAIMS AND IGNORE THE RISE IN HOUSING STARTS THE BOND MARKET ALSO CHOSE TO SEE THE BRIGHTER SIDE OF THE JANUARY PHILADELPHIA FEDERAL RESERVE BUSINESS OUTLOOK SURVEY AS THE FED BANK'S INDEX CAME IN AT 342 DOWN FROM 429 IN DECEMBER ANALYSTS NOTED THAT DESPITE THE DECLINE THE INDEX STILL REFLECTED SOLID GROWTH IN MANUFACTURING FOR THE PHILADELPHIA AREA LATE YESTERDAY THE TWOYEAR NOTE TO BE AUCTIONED NEXT TUESDAY WAS YIELDING 408 IN WHENISSUED TRADING WHILE THE FIVEYEAR NOTE TO BE AUCTIONED NEXT WEDNESDAY WAS YIELDING 503 MUNICIPAL ISSUES FOLLOWED THE TREASURY MARKET DIPPING IN EARLY TRADING AND STRENGTHENING AS THE DAY PROGRESSED DEALINGS WERE HIGHLIGHTED BY THE COMPETITIVE SALE OF ILLINOIS'S 2496 MILLION REFUNDING GENERAL OBLIGATION BONDS A MERRILL LYNCH & CO GROUP WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 459 YIELDS FOR REOFFERED BONDS RANGE FROM 380 IN 1998 TO 495 IN 2008 THE ISSUE WAS RATED DOUBLEA BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 550 OF 2024 BONDS WERE 1/4 POINT STRONGER AT 99 1/4 TO YIELD 552 PRICES WERE UNCHANGED TO AS MUCH AS 1/2 HIGHER IN LATE DEALINGS THERE WAS SOLID DEMAND FOR THE MORE THAN 1 BILLION OF BONDS SOLD YESTERDAY AND WEDNESDAY AND MUNI SPECIALISTS SAY THE MARKET IS FARING WELL GIVEN THIS MONTH'S UNEXPECTEDLY HEAVY ISSUANCE PRICES OF MORTGAGE SECURITIES ROSE ALTHOUGH TRADING SLOWED WITH THE HEAVIEST ACTIVITY IN THE LOWCOUPON SECTOR LOWCOUPON ISSUES OFTEN BENEFIT ON NEWS THAT HOMEOWNER REFINANCING ACTIVITY IS CLIMBING THE MORTGAGE BANKERS ASSOCIATION REPORTED LATE WEDNESDAY THAT ITS REFINANCING INDEX CLIMBED TO 8732 IN THE WEEK ENDED JAN 14 FROM A REVISED 7381 IN THE PREVIOUS WEEK AMONG 6 1/2 SECURITIES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION WAS UP 10/32 AT 100 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE BOTH UP 8/32 AT 100 5/32 AND 100 RESPECTIVELY AMONG THE CURRENTCOUPON THOSE PRICED BELOW PAR 6 ISSUES PRICES WERE UP 9/32 TO 10/32 PAUL HANNON IN LONDON CONTRIBUTED TO THIS ARTICLE 9401210091 940121 YOUR MONEY MATTERS WEEKEND REPORT TOUR YOUR INSURANCE BEFORE PACKING FOR A TRIP BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL YOU SAY YOU'RE SICK OF THE COLD AND THE ICE AND SNOW AND YOU'RE LOOKING FORWARD TO A MUCHNEEDED VACATION IN SOME SUNNY CARIBBEAN HIDEAWAY YOU'VE BOUGHT DISCOUNTED AIR TICKETS GOT A GOOD DEAL ON A SWANK RESORT AND EVEN BOOKED THE DOG AT THE KENNEL BUT HAVE YOU CHECKED YOUR INSURANCE THAT'S RIGHT INSURANCE WHILE MOST TRAVELERS PROBABLY NEVER THINK ABOUT IT THE KIND OF PROTECTION THEY TAKE FOR GRANTED AT HOME MAY BEAR LITTLE RESEMBLANCE TO WHAT THEY HAVE WHEN THEY TRAVEL ABROAD ESPECIALLY IF THEY'RE VENTURING OUTSIDE THE MAJOR DEVELOPED COUNTRIES MEDICARE FOR INSTANCE GENERALLY DOESN'T PAY FOR HOSPITAL OR MEDICAL SERVICES OUTSIDE THE US AND ITS TERRITORIES IF YOU'RE COVERED BY A HEALTH MAINTENANCE ORGANIZATION OR A PREFERRED PROVIDER ORGANIZATION YOU MAY BE ONLY PARTIALLY COVERED WHEN YOU'RE OUTSIDE THE COUNTRY AND YOUR PRIVATE HEALTH INSURANCE MAY NOT FOOT THE BILL IF YOU HAVE TO BE EVACUATED BY AIR FROM SOME OUTOFTHEWAY SPOT WITH INADEQUATE HOSPITALS AND FLOWN BACK TO THE US SO BEFORE YOU START PACKING YOUR BAGS CALL YOUR MEDICAL AUTO AND HOMEOWNERSINSURANCE PLANS AND FIND OUT TO WHAT EXTENT YOU ARE COVERED OUTSIDE THE US ALSO CHECK YOUR CREDITCARD COMPANIES TO SEE WHAT IF ANY COVERAGE THEY PROVIDE BUT DON'T AUTOMATICALLY SIGN UP FOR THE SPECIAL TRAVELINSURANCE PACKAGES SOLD THROUGH MANY TRAVEL AGENCIES THIS INSURANCE UNDERWRITTEN BY A NUMBER OF INSURANCE COMPANIES PROVIDES SHORTTERM COVERAGE INCLUDING TRIPCANCELLATION PROTECTION AND EMERGENCY MEDICAL CARE THE PRICE HOWEVER CAN BE RELATIVELY EXPENSIVE 55 TO 8 OF YOUR TRIP'S TOTAL COST DEPENDING UPON HOW MANY RISKS YOU INSURE AGAINST THE TRAVEL AGENT OFTEN GETS A COMMISSION OF 30 OF YOUR PREMIUM AND WHILE SOME OF THE PROTECTION AVAILABLE COULD BE A GODSEND IN AN EMERGENCY A NUMBER OF INDEPENDENT INSURANCE ADVISERS DOUBT MOST PEOPLE REALLY NEED A LOT OF THE COVERAGE BEING SOLD MOST OF THE TRAVELRELATED INSURANCE ISN'T WORTH IT SAYS ROBERT HUNTER TEXAS INSURANCE COMMISSIONER IT HAS TOO MANY EXCLUSIONS AND EXCEPTIONS AND IT'S TARGETED TOWARD INEXPERIENCED TRAVELERS EXPERIENCED TRAVELERS SELDOM BUY IT SOMETIMES IT'S A WASTE BECAUSE YOU ALREADY HAVE THIS COVERAGE WITH YOUR OWN HEALTHINSURANCE PLAN SAYS PETER A DICKINSON EDITOR OF THE RETIREMENT LETTER A POTOMAC MD NEWSLETTER AND CHANCES ARE YOU CAN GET A SHORTTERM RIDER ON YOUR OWN POLICY THAT WILL COVER YOU AND BE A LOT LESS EXPENSIVE EVALUATING WHETHER THE PROTECTION YOU GET FROM ONE OF THESE POLICIES IS WORTH ITS COST REQUIRES YOU TO FIND OUT WHAT THE POLICIES YOU ALREADY HAVE COVER WHILE YOU ARE TRAVELING THEN YOU HAVE TO LOOK CAREFULLY AT THE COVERAGE IN THE SPECIAL TRAVELINSURANCE PACKAGES ONE OF THE MOST USEFUL TYPES OF TRAVEL INSURANCE COVERS MEDICAL EXPENSES IN CASE OF SUDDEN ILLNESS OR AN ACCIDENT AND MEDICAL EVACUATION WHEN REQUIRED COMPANIES USUALLY MAINTAIN 24HOUR HOTLINES AND ONCE YOU CALL A STAFF MEMBER TAKES CHARGE OF MAKING ARRANGEMENTS FOR A DOCTOR'S APPOINTMENT HOSPITALIZATION OR AIR EVACUATION TO THE NEAREST APPROVED MEDICAL FACILITY PEOPLE WHO'VE BEEN FLOWN TO SAFETY BY A MEDICAL AIR EVACUATION FROM A REMOTE SPOT SAY THEY WERE GRATEFUL TO HAVE THE COVERAGE ONE SATISFIED CUSTOMER IS ROBERT BENT A DEFENSEINDUSTRY CONSULTANT FROM SPRINGFIELD VA WHO FOUND HIMSELF IN DEEP TROUBLE LAST NOVEMBER ON A SCUBADIVING VACATION ON GRAND CAYMAN ISLAND HE ENDED UP WITH A CASE OF THE BENDS WHICH IS A BUILDUP OF NITROGEN BUBBLES IN THE BLOODSTREAM THAT CAN RESULT IN DEATH EVEN THOUGH HE SAYS HE OBSERVED ALL THE DIVING RULES MR BENT 56 YEARS OLD HAD TO BE FLOWN IN A SPECIALLY PRESSURIZED AIRPLANE WITH DOCTOR AND NURSE TO A HYPERBARIC CHAMBER AT DUKE UNIVERSITY IN NORTH CAROLINA FOR TWO WEEKS OF FURTHER TREATMENT THE TAB FOR THE AIR EVACUATION 14000 CASH UPFRONT ON THE RUNWAY OR THE PLANE WOULDN'T FLY FORTUNATELY MR BENT HAD SPECIAL COVERAGE FOR THIS CATASTROPHE THROUGH ACCESS AMERICA INC A RICHMOND VA TRAVELINSURANCE COMPANY WHICH ARRANGED FOR THE FLIGHT IF YOU WANT THIS SPECIAL COVERAGE MAKE SURE ANY TRAVEL POLICY YOU BUY ACTUALLY INCLUDES IT DON'T JUST ASSUME THAT IT DOES CHECK TO SEE THAT MEDICAL EVACUATION IS A FUNDED BENEFIT BY YOUR INSURANCE COMPANY ADVISES JOHN COOK DIRECTOR OF THE TRAVELINSURANCE DIVISION OF TRAVELERS INSURANCE COS HARTFORD CONN A SUBSIDIARY OF TRAVELERS INC IT'S ALSO IMPORTANT TO EXAMINE THE LIMITATIONS AND EXCLUSIONS IN ANY TRAVEL POLICY YOU CONSIDER YOU MUST LOOK AT THE RESTRICTIONS THE FINE PRINT AND THE WHEREASES AND WHEREFORES SAYS BOBBIE SYLVESTER A SALT LAKE CITY TRAVEL CONSULTANT FOR EXAMPLE ALL TRAVELINSURANCE POLICIES HAVE PREEXISTING CONDITION CLAUSES THAT MEANS YOU WON'T BE COVERED IF YOU SUFFER AN ILLNESS PRIOR TO GOING ON A TRIP AND THAT SAME ILLNESS FLARES UP ON YOUR TRIP BUT NOT ALL TRAVEL INSURERS INTERPRET PREEXISTING IN THE SAME WAY SO IT'S BEST TO CALL AN 800NUMBER TO GET THE INSURANCE COMPANY TO EXPLAIN WHAT IT MEANS MR COOK SAYS TRAVELERS DOESN'T CONSIDER A MEDICAL CONDITION THAT IS CONTROLLED BY MEDICATION A PREEXISTING CONDITION IF THE CONDITION HASN'T CHANGED PRIOR TO THE TRIP FOR EXAMPLE A PERSON WHO WAS TAKING HIGHBLOOD PRESSURE MEDICATION BUT HAD NO HEART PROBLEMS WOULD BE COVERED FOR A HEART ATTACK ON A TRIP THE MOST POPULAR TYPE OF TRAVEL INSURANCE IS TRIPCANCELLATION AND INTERRUPTION INSURANCE IT COSTS ABOUT 550 PER 100 OF COVERAGE AND COVERS THE COST OF ANY PAYMENTS YOU'VE MADE IF YOU A TRAVEL COMPANION OR A CLOSE RELATIVE BECOMES ILL BEFORE THE TRIP MANY POLICIES ALSO PROVIDE FOR A REFUND IF YOU HAVE TO CUT YOUR TRIP SHORT FOR SUCH REASONS AS PERSONAL ILLNESS OR THE DEATH OF A FAMILY MEMBER TRIPCANCELLATION INSURANCE PAID OFF LAST YEAR FOR ANNE MIGLIETTA A RETIREE FROM PALISADES PARK NJ HER HUSBAND HUGO HAD TO GO INTO A HOSPITAL FOR AN UNEXPECTED HEARTBYPASS OPERATION A FEW DAYS BEFORE THEY WERE SUPPOSED TO LEAVE FOR A WEEKLONG NONREFUNDABLE TRIP TO NEW ORLEANS MR AND MRS MIGLIETTA GOT THEIR 2400 BACK FROM TRAVEL GUARD INTERNATIONALE OF STEVENS POINT WIS BUT MR HUNTER THE TEXAS INSURANCE COMMISSIONER SAYS IT MAKES MORE SENSE TO HIM TO BUY A REFUNDABLE TICKET IN THE FIRST PLACE HE CONCEDES THAT IF YOU GET A GOOD LOWCOST DEAL ON A NONREFUNDABLE TRIP PACKAGE IT COULD BE WORTH PAYING FOR TRIPCANCELLATION INSURANCE IF THAT TOTAL WAS LESS THAN THE COST FOR A REFUNDABLE TICKET TRIPCANCELLATION INSURANCE CAN ALSO PROTECT YOU IF YOUR TOUR OPERATOR OR THE AIRLINE GOES OUT OF BUSINESS BUT YOU HAVE TO READ YOUR POLICY CAREFULLY SAYS STAN BOSCO ASSISTANT DIRECTOR OF CONSUMER AFFAIRS FOR THE AMERICAN SOCIETY OF TRAVEL AGENTS SOME POLICIES PAY OFF ONLY IF THE TOUR OPERATOR OR AIRLINE FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS OTHERS PAY OFF IF THE TOUR OPERATOR MERELY CEASES OPERATIONS THE MORE COMMON DANGER MANY BUSTED TOUR OPERATORS DON'T FILE FOR CHAPTER 11 HE SAYS SOME LEAVE IN THE MIDDLE OF THE NIGHT TRAVEL PROS ALSO WARN CRUISE PASSENGERS TO BE CAREFUL NOT TO PUT TOO MUCH FAITH IN CANCELLATION WAIVERS OFFERED BY CRUISE LINES THESE WAIVERS WHICH OFTEN COST 60 TO 80 ALLOW YOU TO ESCAPE PAYING A CANCELLATION PENALTY IF YOU CANCEL YOUR TRIP BECAUSE OF AN ILLNESS OR ACCIDENT BUT THEY PROTECT YOU ONLY UP TO 72 HOURS BEFORE DEPARTURE SAYS ADA BROWN OWNER OF SEASIDE TRAVEL HOUSE LONG BEACH CALIF IF YOU CANCEL IN THAT LAST 72HOUR PERIOD YOU HAVE NO WAIVER 9401210090 940121 MB SPINOFF IS CLEARED PITTSBURGH MB COMMUNICATIONS INC SAID THE INTERNAL REVENUE SERVICE RULED THAT ITS PLANNED SPINOFF OF ITS MICOM COMMUNICATIONS CORP UNIT WILL BE TAXFREE FOR SHAREHOLDERS MB NOW MUST REACH AGREEMENT WITH CERTAIN NOTEHOLDERS BEFORE IT CAN SPIN OFF THE UNIT THE COMPANY SAID IT'S UNLIKELY THE TRANSACTION WILL OCCUR BEFORE MID1994 MICOM DESIGNS MAKES AND MARKETS WIDEAREA NETWORKING PRODUCTS FOR SMALL AND MEDIUMSIZE NETWORK USERS MB ORIGINALLY ANNOUNCED THE TRANSACTION IN JULY 1993 9401210089 940121 ARCO AGREES TO SELL TOWER IN DALLAS TO TEXAS UTILITIES LOS ANGELES ATLANTIC RICHFIELD CO AS EXPECTED AGREED TO SELL ITS 12YEAROLD LANDMARK OFFICE TOWER IN DALLAS TO TEXAS UTILITIES CO FOR 29 MILLION THE 49STORY BUILDING DESIGNED BY IM PEI COST ABOUT 190 MILLION TO BUILD ARCO PREVIOUSLY SAID IT WOULD TAKE A CHARGE AGAINST 1993 FOURTHQUARTER EARNINGS TO REFLECT THE SALE OF THE BUILDING AND OTHER ITEMS BUT THE COMPANY HASN'T DISCLOSED THE PRECISE AMOUNT OF THE LOSS ON THE REAL ESTATE THE SALE HAS GENERATED CONTROVERSY IN DALLAS BECAUSE AGENTS FOR OTHER PROSPECTIVE PURCHASERS CLAIMED THAT ARCO FAILED TO RESPOND TO HIGHER BIDS SUBMITTED BY THEIR CLIENTS THESE CRITICS CLAIMED THAT ARCO NEGOTIATED A CUTRATE PRICE FOR THE PROPERTY BECAUSE THE UTILITY IS A MAJOR CUSTOMER ARCO HAS DECLINED TO COMMENT ON SUCH ALLEGATIONS 9401210088 940121 LETTERS TO THE EDITOR BRAZILIANS COMMITTED TO CLEANING HOUSE I WAS DISAPPOINTED TO READ THE UNFAIR ASSESSMENT OF BRAZILIAN SOCIETY IN YOUR JAN 4 PAGEONE ARTICLE MORAL ISSUE WHY DOES BRAZIL FACE SUCH WOES YOU DESERVE CREDIT FOR ATTEMPTING TO ANALYZE A DIFFICULT AND COMPLICATED SUBJECT THE MORAL ETHICAL AND ATTITUDINAL FACTORS CONTRIBUTING TO BRAZIL'S SOCIAL ECONOMIC AND POLITICAL PROBLEMS YOUR ANALYSIS HAD THOUGHTFUL AND INFORMATIVE ELEMENTS OVERALL HOWEVER IT WAS ERRONEOUS AND UNBALANCED YOU EXAMINED IN DETAIL BRAZIL'S CONTINUING DIFFICULTIES WITH INFLATION POVERTY CORRUPTION CRIMINALITY VIOLENCE AND DEATH SQUADS THOUGH MUCH OF WHAT YOU SAID WAS ACCURATE YOU LEFT OUT AN IMPORTANT ASPECT OF RECENT DEVELOPMENTS THE EXTENT TO WHICH BRAZIL HAS MADE PROGRESS IN MOST OF THESE PROBLEM AREAS DURING THE PAST FEW YEARS YOU DESCRIBED HOW SOME BRAZILIANS PROFIT FROM INFLATION THEY WOULD PREFER NO INFLATION BUT SINCE IT EXISTS THEY SHOULD NOT BE CONDEMNED FOR TRYING TO PROTECT THEMSELVES FROM ITS PERVERSE EFFECTS YOU DESCRIBED HOW THE POOR SUFFER GREATLY FROM INFLATION BUT YOU FAILED TO MENTION THE NATIONAL MOBILIZATION AGAINST HUNGER POVERTY AND UNEMPLOYMENT YOU CITED ANECDOTES TO SUPPORT THE CLAIM THAT IN BRAZIL THERE IS WIDESPREAD ACCEPTANCE OF CORRUPTION CRIMINALITY AND VIOLENCE THIS SIMPLY IS NOT TRUE AN ANALYSIS OF OPINION POLLS AND ELECTION RESULTS EITHER OF WHICH WOULD BE A BETTER MEASURE THAN ANECDOTES WOULD DEMONSTRATE CLEARLY THAT THE BRAZILIAN PEOPLE HAVE ABSOLUTELY NO TOLERANCE FOR CORRUPTION CRIMINALITY AND VIOLENCE RATHER THAN BEING COMPLACENT PARTICIPANTS IN A PACT OF MEDIOCRITY AS YOU WOULD HAVE US BELIEVE MOST BRAZILIANS IN FACT ARE EXTREMELY ANGRY ABOUT MORAL ETHICAL AND ATTITUDINAL WEAKNESSES SUCH AS THE EXAMPLES YOU CITED THIS WIDESPREAD POPULAR ANGER HAS BEEN REFLECTED IN GOVERNMENT ACTIONS BRAZIL IN THE PAST THREE YEARS HAS BEEN FAR MORE AGGRESSIVE THAN MOST OTHER COUNTRIES IN DEALING WITH THE PROBLEM OF CORRUPTION THE IMPEACHMENT OF PRESIDENT COLLOR WAS RAPID FAIR PEACEFUL AND CONSTITUTIONAL ON DEC 15 OUR CONGRESS VOTED TO EXPEL THREE CONGRESSMEN FOR CORRUPTION AND A CONGRESSIONAL INVESTIGATORY COMMITTEE IS EXPECTED TO RECOMMEND ADDITIONAL PUNISHMENTS AND LASTING CORRECTIVE MEASURES LATER THIS MONTH THIS YEAR BRAZIL AGAIN WILL HOLD NATIONAL STATE AND MUNICIPAL ELECTIONS GIVING THE ELECTORATE ESTIMATED TO BE ABOUT 100 MILLION VOTERS ANOTHER OPPORTUNITY TO SHOW BRAZILIANS' COMMITMENT TO DEMOCRACY AND HIGH STANDARDS 9401210087 940121 FLOODS IN 3RD QUARTER SENT PERSONAL INCOME DOWN IN 10 STATES WASHINGTON CROP DAMAGE AND PROPERTY LOSSES FROM LAST SUMMER'S DEVASTATING FLOODS PUSHED DOWN PERSONAL INCOME IN 10 MIDWESTERN AND WESTERN STATES DURING LAST YEAR'S THIRD QUARTER THE COMMERCE DEPARTMENT SAID INCOME IN THE STATES ALSO FELL BECAUSE OF DECLINES IN FEDERAL FARM SUBSIDIES INCOME FELL MOST STEEPLY BY 71 IN NORTH DAKOTA IT ALSO DROPPED IN IDAHO MONTANA SOUTH DAKOTA MINNESOTA IOWA NEBRASKA KANSAS MISSOURI AND ARIZONA PERSONAL INCOME INCREASED IN ALL OTHER STATES EXCEPT VERMONT WHERE IT FELL 01 AS FACTORY LAYOFFS AND A CONSTRUCTION SLOWDOWN REDUCED PAYROLLS FOR THE NATION AS A WHOLE PERSONAL INCOME INCREASED A MODEST 07 IT WAS HELD BACK BY WEAK MANUFACTURING PARTICULARLY IN AUTOS WHICH HAS SINCE IMPROVED DROUGHT IN THE SOUTHEAST ALSO HURT FARM INCOME 9401210086 940121 WHO'S NEWS APPLIED LASER SYSTEMS APPLIED LASER SYSTEMS GRANTS PASS ORE DAVID H KATZ WAS ELECTED A DIRECTOR OF THIS MAKER OF SEMICONDUCTORBASED LASER PRODUCTS FILLING A VACANCY ON THE BOARD THAT NOW HAS FIVE MEMBERS DR KATZ 50 YEARS OLD IS PRESIDENT CHIEF EXECUTIVE OFFICER AND COFOUNDER OF LIDAK PHARMACEUTICALS BASED IN SAN DIEGO 9401210085 940121 SHORT INTEREST ON BIG BOARD HITS NEW HIGH SHARES OF RJR NABISCO DISNEY HEAD THE LIST TOTAL UP 28 IN MONTH BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST CONTINUED ITS STEADY ASCENT ON THE NEW YORK STOCK EXCHANGE RISING 28 TO A RECORD LEVEL OF 128 BILLION SHARES IN MIDJANUARY BIG BOARD SHORT INTEREST TOTALED 1275614471 SHARES UP FROM 1240720928 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE INCREASED 849284 SHARES TO 102450504 FROM AN ADJUSTED 101601220 REPORTED IN MIDDECEMBER RJR NABISCO HOLDINGS CORP'S SHORT INTEREST POSITION SOARED 53 MILLION SHARES TO 275 MILLION SHARES POSSIBLY REFLECTING HIGH ARBITRAGE LEVELS IN THE COMPANY'S STOCK ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE FOOD AND TOBACCO COMPANY BUMPED WALT DISNEY CO FROM THE TOP OF THE LIST TO SECOND PLACE ALTHOUGH THE ENTERTAINMENT AND MOVIE CONCERN'S SHORT POSITION ROSE 13 MILLION SHARES TO 241 MILLION SHARES THE SHORT INTEREST POSITION OF COLUMBIA HEALTHCARE CORP SHOWED A HUGE JUMP INCREASING 83 MILLION SHARES TO 223 MILLION GUY WYSERPRATT PRESIDENT OF NEW YORKBASED GUY WYSERPRATT & CO WHICH SPECIALIZES IN ARBITRAGE SAID COLUMBIA'S SHORT POSITION PROBABLY RELATES TO THE COMPANY'S PENDING PLAN TO ACQUIRE HCAHOSPITAL CORP OF AMERICA FOR 57 BILLION IN STOCK INVESTORS ARE PROBABLY SHORTING COLUMBIA'S SHARES IN ANTICIPATION OF COVERING THEIR SHORT POSITIONS BY CONVERTING THEIR HCA STOCK WHEN THE ACQUISITION CLOSES HE SAID MR WYSERPRATT ADDED THAT THE RECORD LEVELS OF SHORT INTEREST ON THE BIG BOARD IN RECENT MONTHS ARE CLOSELY TIED TO A WAVE OF CORPORATE TAKEOVERS SIMILAR TO THE COLUMBIAHCA PLAN EMC CORP A MAKER OF COMPUTER PRODUCTS REGISTERED THE BIGGEST INCREASE IN SHORT INTEREST WITH THE NUMBER OF SHARES SHORTED MORE THAN DOUBLING TO 151 MILLION FROM 68 MILLION MR WYSERPRATT SAID THIS MAY RELATE TO THE DETERIORATION OF PRICES FOR SOME COMPUTER PRODUCTS TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORTINTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE TO 460 FROM 457 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 2772 MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE 21 TRADING DAYS THROUGH JAN 7 WITH JAN 14 AS THE SETTLEMENT DATEEND THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 250000 SHARES EXISTED AT MIDJANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDDECEMBER SEE ACCOMPANYING TABLES WSJ JAN 21 1994 9401210084 940121 URBAN LEAGUE STRESSES SELFRELIANCE AS WELL AS JOBS FOR MINORITIES IN REPORT BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SELFRELIANCE IS AS IMPORTANT AS GOVERNMENT PROGRAMS IN PROMOTING ECONOMIC ADVANCEMENT OF BLACKS THE NATIONAL URBAN LEAGUE SAID IN ITS ANNUAL STATE OF BLACK AMERICA REPORT JOHN JACOB THE LEAGUE'S PRESIDENT CALLED SELFDEVELOPMENT THE FIRMEST STRATEGIC FOUNDATION FOR BLACK ADVANCEMENT BUT HE SAID THE GOVERNMENT PLAYS A CRITICAL ROLE IN CREATING AN ENVIRONMENT IN WHICH BLACKS' EFFORTS COULD FLOURISH HE CALLED ON PRESIDENT CLINTON TO MAKE JOB CREATION AND TRAINING FOR THE DISADVANTAGED A TOP PRIORITY SAYING BLACKS NEED LOWSKILL JOBS THAT WILL LET THEM RAISE FAMILIES AND EDUCATE THEIR CHILDREN FOR THE HIGHSKILL JOBS OF THE FUTURE WE WANT TO SEE THE PRESIDENT PRESS AS HARD FOR JOBS AS HE DID FOR NAFTA MR JACOB SAID HE ADDED THAT NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT ENDANGERS LOWSKILLED JOBS MAKING EFFORTS TO CREATE SUCH WORK MORE CRITICAL THAN EVER MARCUS ALEXIS AN ECONOMIST WHO COWROTE ONE CHAPTER OF THE REPORT CALLED THE NEW EMPHASIS ON SELFRELIANCE A WATERSHED MOMENT IN THE CIVIL RIGHTS MOVEMENT MR JACOB WARNED HOWEVER THAT NEITHER THE GOVERNMENT NOR THE PRIVATE SECTOR HAS DONE ENOUGH TO ALLOW BLACKS TO SUCCEED IN THE ANNUAL REPORT HE CITED A WALL STREET JOURNAL STUDY OF COMPANIES THAT SHOWED BLACKS WERE THE ONLY GROUP TO SUFFER A NET JOB LOSS DURING THE 19901991 RECESSION AN EMPLOYMENT PATTERN THAT HE SAID AT BEST SUGGESTS COMPANIES ARE INDIFFERENT TO THEIR SOCIAL AND LEGAL OBLIGATIONS THE EXPLANATION BY SOME CORPORATIONS THAT THEY WERE MORE CONCERNED ABOUT AGGREGATE MINORITY EMPLOYMENT THAN BLACK JOB LOSSES HE WROTE RAISES THE TROUBLING POSSIBILITY THAT CORPORATE DIVERSITY PROGRAMS COULD BECOME BARELY DISGUISED BLACK REMOVAL' PROGRAMS MR JACOB SAID THE GOVERNMENT SHOULD MAKE SURE THAT LOCAL UNSKILLED WORKERS GET MANY OF THE CONSTRUCTION JOBS THAT WILL BE CREATED TO REPAIR ROADS DAMAGED BY THIS WEEK'S CALIFORNIA EARTHQUAKE ONETHIRD OF BLACKS LIVED IN POVERTY IN 1992 A MUCH HIGHER PORTION THAN THE OVERALL 147 NATIONAL POVERTY RATE THE REPORT SAID STILL MANY OF THE REPORT'S AUTHORS REFUSED TO DWELL ON GRIM STATISTICS INSTEAD THEY DESCRIBED VACANT LOTS IN INNER CITIES AS UNNOTICED RESOURCES FOR ECONOMIC DEVELOPMENT AND CITED BLACK MIDDLECLASS FAMILIES WHO HAD IMPROVED HOUSING AND SCHOOLS IN THEIR NEIGHBORHOODS ONE SMALL SOUTHERN CHURCH WHERE 96 OF THE CONGREGATION WAS ON WELFARE COMBINED MEMBERS' FOOD STAMPS BOUGHT SUPPLIES FROM A WHOLESALE GROCER AND OPENED A GROCERY STORE IN THE CHURCH AUDITORIUM MR JACOB SAID WITHIN FOUR MONTHS THE MEMBERS HAD ENOUGH MONEY TO BUY A SUPERMARKET AND EVENTUALLY THEY BOUGHT A FARM TRACTORS MEATPROCESSING PLANTS AND RESTAURANTS NOW NOBODY IN THE CONGREGATION IS ON WELFARE HE SAID ANY GROUP THAT WAITS FOR OUTSIDE FORCES TO COME INTO THE COMMUNITY AND LIFT THEM UP IS DOOMED TO BE SITTING THERE 20 YEARS FROM NOW WISHING AND WAITING MR JACOB SAID WE CANNOT GET TRAPPED BY THE RHETORIC OF THE 1980S AND WRITE THESE COMMUNITIES OFF 9401210083 940121 FINANCING BUSINESS FIRST USA INC FIRST USA INC DALLAS SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION A PLAN TO SELL FIVE MILLION SHARES OF MANDATORY CONVERTIBLE PREFERRED STOCK FOR TOTAL PROCEEDS OF ABOUT 160 MILLION THE ISSUER AND PROCESSOR OF CREDIT CARDS SAID IT WOULD USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES POSSIBLY INCLUDING REDUCING DEBT AND PROVIDING CAPITAL TO SUBSIDIARIES FOR EXPANSION EACH OF THE NEW PREFERRED SHARES WILL CONVERT TO ONE COMMON SHARE AFTER FOUR YEARS IF NOT REDEEMED OR CONVERTED EARLIER SEPARATELY THE COMPANY REGISTERED WITH THE SEC A PUBLIC OFFERING OF FIVE MILLION COMMON SHARES TO BE SOLD BY EXISTING SHAREHOLDERS MERRILL LYNCH & CO WILL BE LEAD MANAGER ON BOTH ISSUES 9401210082 940121 WHO'S NEWS ELECTRO BRAIN INTERNATIONAL CORP ELECTRO BRAIN INTERNATIONAL CORP SALT LAKE CITY RONALD A JOHNSON 33 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS VIDEOGAME PUBLISHER SUCCEEDING MASAYUKI TSUDA 59 WHO RETIRED MR JOHNSON WAS FORMERLY CHIEF OPERATING OFFICER OF THE COMPANY AND PRESIDENT OF US OPERATIONS THE COMPANY SAID IT HAS A ONEYEAR OPTION TO PURCHASE MOST OF MR TSUDA'S 28 STAKE FOR 45 MILLION 9401210081 940121 TECHNOLOGY & MEDICINE COMPUTER ASSOCIATES' STOCK FALLS 79 EVEN THOUGH NET ROSE 55 IN QUARTER BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ISLANDIA NY COMPUTER ASSOCIATES INTERNATIONAL INC'S STOCK FELL 79 DESPITE A BETTERTHANEXPECTED 55 INCREASE IN FISCAL THIRDQUARTER EARNINGS IN ADDITION TO THE EARNINGS ANNOUNCEMENT THE NO 2 SOFTWARE COMPANY AFTER MICROSOFT NAMED SANJAY KUMAR 31 YEARS OLD TO THE NEW POST OF PRESIDENT AND CHIEF OPERATING OFFICER MR KUMAR HAD BEEN EXECUTIVE VICE PRESIDENT OPERATIONS IN RESPONSE TO THE STOCK DROP CHARLES B WANG CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW I'M NO EXPERT ON THE STOCK MARKET I'LL JUST LISTEN TO WHAT ANALYSTS ARE SAYING THAT A LOT OF PEOPLE ARE SHORTTERM PROFIT TAKERS MR WANG SAID THE COMPANY WAS VERY HAPPY WITH THE COMPANY'S RESULTS WHICH EXCEEDED ANALYSTS' ESTIMATES OF 62 CENTS TO 65 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPUTER ASSOCIATES FELL 350 TO CLOSE AT 41 FOR THE QUARTER ENDED DEC 31 COMPUTER ASSOCIATES REPORTED NET ROSE TO 1242 MILLION OR 72 CENTS A SHARE FROM 802 MILLION OR 48 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 15 TO 5744 MILLION IT WAS A GOOD SOLID QUARTER BUT MOST OF THE UPSIDE WAS ON THE MARGIN SIDE SAID TIM MCCOLLUM WHO FOLLOWS SOFTWARE COMPANIES FOR DEAN WITTER REYNOLDS HE SAID THE QUARTER'S REVENUE DIDN'T SIGNIFICANTLY EXCEED ANALYSTS' ESTIMATES BUT HE SAID THAT DESPITE THE STOCK'S DROP YESTERDAY COMPUTER ASSOCIATES SHARES ARE STILL NEAR A RECORD HIGH INVESTORS DESERVED A LITTLE PROFITTAKING HE SAID RICK SHERLUND A SOFTWARE ANALYST AT GOLDMAN SACHS CITED SEVERAL REASONS FOR THE STOCK'S DROP IT'S PUZZLING TO ME THAT COMPUTER ASSOCIATES' RELATIVELY MATURE MAINFRAME SOFTWAREPRODUCT PORTFOLIO CAN SUSTAIN CLOSE TO 20 LICENSE REVENUE GROWTH AND THAT MAINTENANCE REVENUES ARE FLAT YEAR OVER YEAR HE SAID THOSE CONCERNS CAUSED PROFITTAKING IN ADDITION MR SHERLUND SAID THE LATESTQUARTER PERFORMANCE WASN'T THE BIG BLOWOUT WE SAW LAST QUARTER RELATIVE TO EXPECTATIONS THE COMPANY POSTED AN 86 RISE IN SECONDQUARTER NET BUT MR WANG WHO SPOKE TO ANALYSTS EARLIER YESTERDAY SAID IN GENERAL THE BUSINESS IS STRONG AND THE OUTLOOK IS STRONG HE SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN 220 A SHARE OR ABOUT 3784 MILLION FOR THE YEAR ENDING MARCH 31 HE ALSO SAID HE IS COMFORTABLE WITH ESTIMATES THAT REVENUE FOR THE YEAR WILL TOTAL 21 BILLION TO 22 BILLION A YEAR EARLIER COMPUTER ASSOCIATES EARNED 2455 MILLION OR 144 A SHARE ON REVENUE OF 184 BILLION FOR THE NINE MONTHS COMPUTER ASSOCIATES REPORTED NET INCOME OF 2425 MILLION OR 141 A SHARE UP 66 FROM 1464 MILLION OR 86 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 16 TO 151 BILLION COMPUTER ASSOCIATES' NEW PRESIDENT MR KUMAR WAS ALSO NAMED TO THE BOARD AS WAS RICHARD P GRASSO WHO IS EXECUTIVE VICE CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW YORK STOCK EXCHANGE THE ADDITIONS INCREASE THE BOARD TO EIGHT DIRECTORS MR WANG SAID MR KUMAR'S APPOINTMENT WAS A RECOGNITION OR FORMALIZATION OF A ROLE HE'S HAD MR KUMAR JOINED COMPUTER ASSOCIATES WITH ITS ACQUISITION OF UCCEL CORP IN AUGUST 1987 WHERE HE WAS A DIRECTOR OF SOFTWARE DEVELOPMENT HE HAS HELD VARIOUS POSITIONS AT COMPUTER ASSOCIATES IN THE DEVELOPMENT PLANNING AND OPERATIONS AREA HE WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS A YEAR AGO 9401210080 940121 PRODUCTION FELL 13 IN FISCAL 2ND QUARTER AT PORGERA GOLD MINE SPECIAL TO THE WALL STREET JOURNAL PORT MORESBY PAPUA NEW GUINEA GOLD PRODUCTION AT THE PORGERA MINE IN THE PAPUA NEW GUINEA HIGHLANDS FELL 13 TO 290675 OUNCES IN THE SECOND QUARTER ENDED DEC 31 FROM 335283 OUNCES A YEAR EARLIER THE DECLINE WAS EXPECTED AND IS A RESULT OF LOWER GOLD GRADES FOUND AT THE OPEN PIT AND UNDERGROUND OPERATIONS THE PORGERA MINE IS OWNED EQUALLY BY FOUR PARTNERS RENISON GOLDFIELDS CONSOLIDATED LTD PLACER PACIFIC LTD HIGHLANDS GOLD LTD ALL BASED IN AUSTRALIA AND THE PAPUA NEW GUINEA GOVERNMENT THE PARTNERS SAID PRODUCTION FOR THE 12 MONTHS ENDED DEC 31 FELL 22 TO 116 MILLION OUNCES OF GOLD FROM 149 MILLION OUNCES A YEAR EARLIER THE PARTNERS SAID EXPANSION OF THE OPEN PIT MINE AND A HIGHER VOLUME OF ORE BEING PROCESSED AT THE PORGERA MILL IS HELPING TO PARTIALLY OFFSET THE IMPACT OF LOWER GOLD GRADES MINING IN THE OPEN PIT AVERAGED 59800 METRIC TONS A DAY AND THE PARTNERS SAID THEY HAVE ORDERED MORE MINING EQUIPMENT TO LIFT THIS RATE TO 100000 TONS A DAY BY MID1994 CASH OPERATING COSTS AT THE MINE ROSE 54 IN THE SECOND QUARTER TO 246 AUSTRALIAN DOLLARS US1723 AN OUNCE FROM A160 AN OUNCE A YEAR EARLIER 9401210079 940121 WHO'S NEWS KLOSTER HEAD OF PHILIPS LIGHTING UNIT RESIGNS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM EINAR KLOSTER HEAD OF THE LIGHTING DIVISION OF PHILIPS ELECTRONICS NV RESIGNED THE 56YEAROLD MR KLOSTER WILL STEP DOWN FROM HIS POSITION OVER THE COURSE OF THE YEAR A PHILIPS SPOKESMAN SAID WITHOUT BEING MORE SPECIFIC A SUCCESSOR HASN'T YET BEEN NAMED MR KLOSTER WHO JOINED THE DUTCH ELECTRONICS COMPANY IN 1961 HAS BEEN A MEMBER OF THE 13MEMBER PHILIPS GROUP MANAGEMENT COMMITTEE BUT REMAINS OUTSIDE THE FIVEMEMBER BOARD THAT IS HEADED BY JAN TIMMER THE COMPANY'S TOP MANAGEMENT HAS EXPERIENCED MAJOR UPHEAVALS SINCE 1990 WHEN COR VAN DER KLUGT WAS FIRED AS CHAIRMAN OSTENSIBLY FOR MAKING MISLEADING PUBLIC STATEMENTS ABOUT PROFIT TRENDS UPON SUCCEEDING MR VAN DER KLUGT MR TIMMER IMMEDIATELY INITIATED A FARREACHING RESTRUCTURING PROGRAM TO DOWNSIZE THE BLOATED AND MONEYLOSING PHILIPS AND THE BOARD WHICH FOR DECADES HAD BEEN CHARACTERIZED AS A CHUMMY GROUP OF GOOD OL' BOYS WITH LONGTIME PHILIPS SERVICE WAS SUDDENLY SHAKEN OUT AND IN 1992 AND 1993 RESTOCKED WITH THE HIGHPROFILE CORPORATE TALENT FROM OUTSIDE EINDHOVEN AND EVEN FROM OUTSIDE THE ELECTRONICS BUSINESS 9401210078 940121 US CANADIAN TALKS ON SALMON AGREEMENT RUN INTO AN IMPASSE OTTAWA THE US AND CANADA HAVE REACHED AN IMPASSE IN THEIR NEGOTIATIONS FOR AN AGREEMENT GOVERNING SALMON FISHING OFF THE PACIFIC COAST FISHERIES MINISTER BRIAN TOBIN SAID HE SAID THAT IN VIEW OF THE DEADLOCK CANADA HAS DECIDED AGAINST PARTICIPATING IN THE NEXT ROUND OF NEGOTIATIONS SCHEDULED TO BE HELD IN PORTLAND ORE STARTING NEXT MONDAY THE AGREEMENT IS CONSIDERED NECESSARY TO CONSERVE LIMITED STOCKS OF SALMON THAT MIGRATE BETWEEN THE WATERS OF THE TWO COUNTRIES CANADIAN OFFICIALS SAID THE US NEGOTIATORS WERE OBSTRUCTING CANADIAN EFFORTS TO WORK OUT EQUITY ARRANGEMENTS FOR THE SALMON CATCH SUCH ARRANGEMENTS WOULD ASSURE THAT EACH COUNTRY RECEIVES THE FULL FISHERIES BENEFIT FROM ITS OWN SALMON PRODUCTION SETTLEMENT OF THE EQUITY ISSUE IS IMPORTANT TO CANADA BECAUSE MUCH MORE CANADIAN SALMON IS BEING INTERCEPTED BY US FISHERMEN THAN US SALMON BY CANADIAN FISHERMEN UNDER PROPOSED EQUITY RULES INTERCEPTION ADVANTAGES ENJOYED BY EITHER COUNTRY ARE SUPPOSED TO BE OFFSET BY COMPENSATION AND ADJUSTMENTS IN FISHING PATTERNS BUT THIS CAN'T BE DONE UNTIL A COMPENSATION SYSTEM IS AGREED THROUGH EQUITY NEGOTIATIONS WHICH WERE SUPPOSED TO PARALLEL NEGOTIATIONS ON SALMON CATCH LIMITS THE CANADIAN OFFICIALS SAID THAT AFTER FIVE NEGOTIATING SESSIONS THE US SIDE HAS STATED THAT IT HAS NO PROPOSALS TO ADVANCE THE EQUITY NEGOTIATIONS EFFECTIVELY BLOCKING THEM 9401210077 940121 BUSINESS BRIEF ELECTRONIC ARTS INC NET INCOME JUMPED 47 IN FISCAL THIRD QUARTER ELECTRONIC ARTS INC SAN MATEO CALIF SAID FISCAL THIRDQUARTER NET INCOME LEAPED 47 AS SALES OF ITS POPULAR COMPUTER GAMES SOARED THE COMPANY EARNED 181 MILLION OR 36 CENTS A SHARE IN THE PERIOD ENDED DEC 31 COMPARED WITH 123 MILLION OR 26 CENTS A SHARE A YEAR EARLIER SALES ROSE 40 TO 1495 MILLION IN THE QUARTER FROM 1071 MILLION A YEAR EARLIER EARNINGS WERE IN LINE WITH EXPECTATIONS ON WALL STREET THE COMPANY'S SHARES FELL 25 CENTS TO 29 IN NASDAQ STOCK MARKET TRADING 9401210076 940121 WHO'S NEWS LEBENTHAL & CO NAMES MUNI TRADER GAMMON PRESIDENT OF ASSET UNIT NEW YORK LEBENTHAL & CO NAMED JAMES L GAMMON A WIDELY KNOWN MUNICIPALBOND TRADER PRESIDENT OF ITS NEW LEBENTHAL ASSET MANAGEMENT INC INVESTMENTMANAGING UNIT EFFECTIVE JAN 31 MR GAMMON 52 YEARS OLD WAS SENIOR VICE PRESIDENT AND SENIOR PORTFOLIO MANAGER AT LOEWS/CNA HOLDINGS INC A UNIT OF LOEWS CORP DESPITE A REPUTATION AS A COMPETITIVE AND SUCCESSFUL BOND TRADER MR GAMMON LEFT IN JUNE HE SAID THE DEPARTURE REFLECTED LOEWS'S DECLINING EMPHASIS ON TAXFREE MUNICIPAL BONDS AT HIS DEPARTURE HE PLANNED TO JOIN A DALLASBASED MUTUALFUND COMPANY BUT DECLINED THE OFFER FOR HEALTH REASONS THREE WEEKS AGO MR GAMMON SAID DOCTORS CLEARED HIM TO WORK HIS NEW ASSIGNMENT WILL INVOLVE CONSIDERABLY LESS MONEY THAN THE BILLIONS HE MANAGED AT LOEWS/CNA WE WOULD LIKE TO HAVE ABOUT 400 MILLION IN ASSETS UNDER MANAGEMENT BY THE END OF THE FIRST YEAR MR GAMMON SAID AND WE BELIEVE BASED ON PRELIMINARY MARKETING THAT WE CAN DO THAT 9401210075 940121 FEDERATED SAYS IT'S HOLDING TO PLAN FOR MACY MERGER BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERATED DEPARTMENT STORES INC TOLD ANALYSTS IT IS DETERMINED TO PURSUE A MERGER WITH RH MACY & CO BUT LEFT THEM UNIMPRESSED WITH ITS ESTIMATES FOR ITS OWN SALES AND EARNINGS THE CINCINNATIBASED COMPANY IS WORKING ON A CONCEPTUAL PLAN FOR A MERGER OF THE TWO DEPARTMENTSTORE CHAINS BUT HASN'T YET WORKED OUT DETAILS CHAIRMAN ALLEN QUESTROM TOLD ANALYSTS AT THE WALDORF ASTORIA HOTEL HERE FEDERATED RECENTLY PAID 4493 MILLION TO ACQUIRE HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S CLAIM IN MACY'S CHAPTER 11 BANKRUPTCY REORGANIZATION AND SAID IT WANTS TO MERGE WITH MACY BUT ON MARCH 15 MACY MANAGEMENT IS EXPECTED TO ASK THE US BANKRUPTCY COURT IN NEW YORK TO EXTEND FOR AT LEAST ANOTHER THREE MONTHS ITS EXCLUSIVE RIGHT TO FILE A PLAN OF REORGANIZATION NEW YORKBASED MACY HAS SAID IT WISHES TO REMAIN INDEPENDENT SEPARATELY MACY SAID IT WILL BUILD A NEW BULLOCK'S STORE TO REPLACE ONE AT A MALL IN NORTHRIDGE CALIF WHICH SUSTAINED MAJOR DAMAGE IN THE LOS ANGELES EARTHQUAKE THE COMPANY SAID ITS SHERMAN OAKS BULLOCK'S STORE ALSO SUSTAINED SIGNIFICANT DAMAGE AND MAY BE CLOSED FOR MONTHS TWO OTHER BULLOCK'S STORES CLOSED BY THE EARTHQUAKE WILL REOPEN WITHIN A WEEK WHILE ONE OF MACY'S I MAGNIN STORES WILL REMAIN CLOSED FOR SEVERAL WEEKS MACY EXECUTIVES WOULDN'T COMMENT ON THE COST OF THE DAMAGE ASKED ABOUT MR QUESTROM'S COMMENTS CAROL SANGER A FEDERATED VICE PRESIDENT SAID OUR PREFERENCE IS TO SUBMIT A PLAN WITH MACY BUT AT SOME POINT IT WILL BECOME APPROPRIATE FOR THE COURT AND CREDITORS TO LOOK AT A PLAN THAT MAY BE AN ALTERNATIVE TO MACY'S PLAN AND THAT'S WHAT WE ARE PREPARING NOW MR QUESTROM TOLD ANALYSTS THAT AN ALLIANCE WITH MACY WOULD GIVE A COMBINED COMPANY LOWER OPERATING EXPENSES THAT WOULD LEAD TO MORE COMPETITIVE PRICING FEDERATED OFFICIALS ALSO SAID THEY EXPECT SAMESTORE SALES TO GROW 2 TO 3 IN 1994 AND TOTAL SALES TO RISE ABOUT 5 THEY SAID THEY EXPECT EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION TO BE IN THE RANGE OF 11 TO 13 OF TOTAL SALES BY THE 1995/1997 PERIOD FOR THE FISCAL YEAR ENDED JAN 31 1993 FEDERATED'S EARNINGS ON THAT BASIS AMOUNTED TO 93 OF SALES FEDERATED ALSO SAID IT WOULD OPEN NINE STORES IN 1994 IT'S CLEAR FEDERATED IS A GOOD OPERATOR AND DETERMINED TO MERGE WITH MACY BUT THEY WON'T SET THE WORLD ON FIRE WITH THESE NUMBERS SAID PETER N SCHAEFFER A PARTNER WITH JOHNSON REDBOOK SERVICE FEDERATED SHARES CLIMBED 375 CENTS TO 22125 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9401210074 940121 UNIT OF TENNECO INC LEVIATHAN PLAN PROJECT HOUSTON LEVIATHAN GAS PIPELINE PARTNERS LP AND A TENNECO INC UNIT AGREED TO JOINTLY BUILD A PIPELINE SYSTEM TO GATHER NATURAL GAS FROM PRODUCING PROPERTIES OFFSHORE LOUISIANA THE PROPERTIES BEING DEVELOPED ARE IN THE VIOSCA KNOLL AND MAIN PASS AREAS LEVIATHAN AND TENNECO GAS GATHERING CO WILL EACH OWN HALF OF THE GATHERING FACILITIES THE PARTNERS WILL BUILD A 95MILE PIPELINE FROM A PLATFORM IN MAIN PASS BLOCK 252 TO A CONNECTING POINT WITH ANOTHER COMPANY'S LINE IN SOUTH PASS BLOCK 55 LEVIATHAN AND TENNECO GAS ALSO PLAN TO BUILD A SIXMILE PIPELINE FROM VIOSCA KNOLL BLOCK 817 TO A CONNECTING POINT WITH A PLATFORM IN MAIN PASS BLOCK 289 THE SYSTEM WILL BE ABLE TO TRANSPORT MORE THAN 400 MILLION CUBIC FEET OF GAS A DAY PIPELINE INSTALLATION IS EXPECTED TO START DURING THE SUMMER WITH INITIAL DELIVERIES TO BEGIN BY THE FOURTH QUARTER LEVIATHAN GAS IS A PARTNERSHIP FORMED TO BUY OWN AND MANAGE OFFSHORE NATURAL GAS PIPELINE SYSTEMS AND RELATED ASSETS 9401210073 940121 NEW VALLEY TO AMEND REORGANIZATION PLAN TO SATISFY CREDITORS PARAMUS NJ NEW VALLEY CORP SAID IT WILL AMEND ITS REORGANIZATION PLAN TO ENSURE THAT ALL SECURED AND UNSECURED CREDITORS RECEIVE 100 OF THEIR ALLOWED CLAIMS THE AMENDMENT WILL BE FILED IN US BANKRUPTCY COURT IN NEWARK NJ AS PART OF NEW VALLEY'S PROCEEDINGS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE ORIGINAL PLAN FILED NOV 24 HAD PROPOSED RECOVERIES OF AS LOW AS 51 FOR SOME CREDITOR CLAIMS NEW VALLEY THE PARENT OF WESTERN UNION FINANCIAL SERVICE INC SAID THE AMENDMENT WAS AIMED AT DISGRUNTLED CREDITORS WHO HAD OPPOSED THE ORIGINAL PLAN WE WANT TO GET THE DEAL DONE AND COMPLETE THE REORGANIZATION SAID A NEW VALLEY SPOKESMAN WE BELIEVE THIS IS THE WAY WE CAN DO IT NEW VALLEY SAID THE AMENDED PLAN WILL REQUIRE AN ADDITIONAL 25 MILLION IN CASH AS PART OF THE AMENDED PLAN NEW VALLEY SAID IT WILL ASK THE COURT FOR PERMISSION TO FORGO POSTPETITION INTEREST PAYMENTS TO UNSECURED CREDITORS IN ADDITION NEW VALLEY SAID IT WILL REQUEST A POSTPONEMENT OF A COURT HEARING SCHEDULED JAN 28 TO CONSIDER THE PLAN DUE TO THE NEW FILING 9401210072 940121 TIME WARNER PROTECTS ITSELF AGAINST SEAGRAM POISONPILL TACTIC RETURNS AS CANADIAN DISTILLER LIFTS ITS STAKE TO 117 BY LAURA LANDRO AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL TIME WARNER INC IN A MOVE AIMED AT KEEPING ITS BIG NEW INVESTOR SEAGRAM CO AT BAY REINSTITUTED A POISONPILL PROVISION THAT EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO 15 OF TIME WARNER'S STOCK THE MOVE APPROVED AT A BOARD MEETING COMES JUST A DAY AFTER SEAGRAM BECAME TIME WARNER'S LARGEST SHARE HOLDER RAISING ITS STAKE TO 117 FROM 104 THE CANADIAN SPIRITS GIANT WHICH MADE AN INITIAL 57 INVESTMENT IN TIME WARNER IN MAY HAS SAID IT INTENDS TO BUY AS MUCH AS 15 THROUGH OPENMARKET PURCHASES SEAGRAM HAS BEEN ADDING TO ITS STAKE SINCE THEN ITS TOTAL INVESTMENT IS VALUED AT ABOUT 176 BILLION MONTREALBASED SEAGRAM CRITICIZED THE MOVE BY TIME WARNER THE NEW YORKBASED ENTERTAINMENT CABLE AND PUBLISHING CONGLOMERATE WE BELIEVE THAT SUCH PLANS AREN'T IN THE BEST INTERESTS OF PUBLIC SHAREHOLDERS AND CAN INTERFERE WITH SHAREHOLDER CHOICE AND ADVERSELY AFFECT SHAREHOLDER VALUES THE COMPANY SAID THE PILL MAKES IT PROHIBITIVELY EXPENSIVE FOR A HOSTILE ACQUIRER TO TAKE OVER TIME WARNER THOUGH SEAGRAM SAID YESTERDAY IT DOESN'T PLAN TO EXCEED 15 PEOPLE CLOSE TO SEAGRAM SAID IT VIEWS THE TIME WARNER ACTION AS ANTAGONISTIC TIME WARNER SHOULD BE MAKING AN EFFORT TO EMBRACE EDGAR BRONFMAN JR SEAGRAM'S PRESIDENT THESE PEOPLE CONTEND BUT TIME WARNER HAS THE SUPPORT OF A NUMBER OF ITS OTHER SHAREHOLDERS WHO ARE CONCERNED THAT SEAGRAM MIGHT TRY TO GRAB CONTROL WITHOUT PAYING A PREMIUM FOR THEIR SHARES YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TIME WARNER SHARES CLOSED AT 40 UP 875 CENTS JESSICA REIF AN ANALYST AT OPPENHEIMER & CO SAID THE MARKET'S REACTION SHOWS HOLDERS VIEW THE POISONPILL MOVE AS A POSITIVE ONE THAT WILL PROTECT SEAGRAM FROM GAINING CREEPING CONTROL OVER TIME WARNER WHILE LARGE INSTITUTIONAL INVESTORS ARE TYPICALLY OPPOSED TO POISON PILLS IN TIME WARNER'S CASE SOME OF THE COMPANY'S LARGEST SHAREHOLDERS INCLUDING CAPITAL GROUP INC WITH AN 11 STAKE ENDORSED THE PLAN A NUMBER OF LARGE SHAREHOLDERS CITED THE TISCH FAMILY'S INVESTMENT IN CBS INC IN 1986 WHEN LAURENCE TISCH LOEWS CORP CHAIRMAN OBTAINED DE FACTO CONTROL OF THE BROADCASTER BY BUYING 249 OF ITS STOCK IN THE OPEN MARKET THEN BECAME CHAIRMAN OF CBS WITH THE BOARD'S APPROVAL MARIO GABELLI WHOSE GABELLI FUNDS OWN SHARES IN TIME WARNER AND SEAGRAM SAID THAT NORMALLY HE WOULD PHILOSOPHICALLY BE AGAINST A POISON PILL IN THE TIME WARNER CASE HOWEVER HE SAID SEAGRAM'S MR BRONFMAN COULD MARCH UP TO 25 WITHOUT ANYONE KNOWING WHERE HE WAS GOING AND SHAREHOLDERS COULD LOSE THE CHANCE OF A PREMIUM MR GABELLI SAID HE BELIEVES MR BRONFMAN HAS SHOWN ONLY THE FIRST CARD OF A FIVECARD DECK RICHARD KOPPES GENERAL COUNSEL AT THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM A BIG TIME WARNER HOLDER SAID WE AREN'T CONCERNED ABOUT THE PILL HE SAID THAT GERALD LEVIN TIME WARNER'S CHAIRMAN AND HIS MANAGEMENT TEAM HAVE DONE A GOOD JOB OVER THE LAST TWO YEARS BOOSTING THE STOCK PRICE FROM ABOUT 29 A SHARE A YEAR AGO TIME WARNER'S MOVE IS A WAY OF PREVENTING SEAGRAM FROM MOVING FROM 15 TO 25 AND GAINING EFFECTIVE CONTROL AS IN THE CBS TAKEOVER CONTENDS LISBETH R BARRON OF SG WARBURG & CO BUT ANOTHER WALL STREET EXECUTIVE SAID THE POISON PILL PREVENTS ANYONE FROM ISSUING A GOOD SECURITY FOR TIME AND ELIMINATES 90 OF THE POSSIBILITY OF GETTING A PREMIUM FOR THE STOCK TIME WARNER HAS BEEN SAYING FOR THE PAST YEAR THAT IT WOULDN'T ADOPT A PILL BUT IN THE WAKE OF THE TAKEOVER BATTLE FOR RIVAL ENTERTAINMENT CONCERN PARAMOUNT COMMUNICATIONS INC IT HAS CHANGED ITS TUNE WHILE IT DROPPED A SIMILAR POISON PILL OR SHAREHOLDERRIGHTS PLAN THREE YEARS AGO THE COMPANY SAID IT DECIDED TO ADOPT A NEW ONE AFTER CONCERNS WERE RAISED BY SEVERAL INSTITUTIONAL INVESTORS AND TIME WARNER'S STRATEGIC PARTNERS THAT THE COMPANY MIGHT BE VULNERABLE TO ABUSIVE TAKEOVER TACTICS INCLUDING ACQUISITION OF CONTROL WITHOUT PAYING ALL SHAREHOLDERS A FAIR PREMIUM UNDER TERMS OF THE PLAN TIME WARNER WOULD ISSUE ONE PREFERRED STOCKPURCHASE RIGHT FOR EACH TIME WARNER COMMON SHARE OUTSTANDING AS OF YESTERDAY OR ISSUED THEREAFTER UNTIL THE RIGHTS BECOME EXERCISABLE EACH RIGHT WOULD ENTITLE THE HOLDER TO BUY 1/1000 OF A SHARE OF PREFERRED STOCK AT 150 IF ANY GROUP ACQUIRES MORE THAN 15 OF TIME WARNER IN OTHER THAN A QUALIFYING TENDER OFFER TIME WARNER SAID THE RIGHTS OFFERING DOESN'T PRECLUDE A BONA FIDE ALLCASH OFFER FOR TIME WARNER'S STOCK WHICH TREATS ALL SHAREHOLDERS EQUALLY OF COURSE SUCH AN OFFER WOULD BE PROHIBITIVELY EXPENSIVE FOR ALL BUT A FEW COMPANIES GIVEN THE SIZE OF ITS MARKET CAPITALIZATION AND THE AMOUNT OF LEVERAGE IT'S HIGHLY UNLIKELY THAT TIME WARNER WOULD BE THE SUBJECT OF AN OUTRIGHT TAKEOVER MS BARRON SAID TIME WARNER HAS ABOUT 16 BILLION IN DEBT AND 375 MILLION SHARES OUTSTANDING MS BARRON CALCULATES THAT BUYING TIME WARNER INCLUDING STAKES HELD BY ITS STRATEGIC INVESTORS WOULD COST 20 BILLION PLUS THE ASSUMPTION OF TIME WARNER DEBT TIME WARNER SAID THE PILL WOULDN'T PRECLUDE IT FROM A FRIENDLY MERGER TIME WARNER OFFICIALS HAVE PRIVATELY INDICATED THAT THE COMPANY MAY ONE DAY CONSIDER A FRIENDLY MERGER WITH U S WEST INC LAST MAY THE DENVERBASED REGIONAL TELEPHONE COMPANY BOUGHT A 255 STAKE IN TIME WARNER ENTERTAINMENT FOR 25 BILLION THAT UNIT WHICH INCLUDES TIME WARNER'S MOVIE AND CABLE OPERATIONS ALSO IS 112OWNED BY TWO JAPANESE CONCERNS ITOCHU CORP AND TOSHIBA CORP JAY W CHAI EXECUTIVE VICE PRESIDENT OF ITOCHU SAID THAT COMPANY ALSO SUPPORTS THE PILL DECISION TOSHIBA COULDN'T BE REACHED U S WEST DECLINED TO DISCUSS WHETHER IT HAD PUSHED TIME WARNER TO ADOPT THE POISON PILL TO PROTECT ITS OWN INTERESTS OR WHETHER IT MIGHT CONSIDER A MERGER WITH TIME WARNER IN A STATEMENT U S WEST SAID THE TIME WARNER MOVES ADDRESS OUR CONCERNS AND WE SUPPORT THE ACTION SOME ON WALL STREET SPECULATED THAT IF SEAGRAM WANTS TO BOOST ITS STAKE BEYOND 15 IT COULD MOUNT A LEGAL CHALLENGE TO THE POISON PILL BUT PEOPLE CLOSE TO THE COMPANY SAID SUCH A LEGAL CHALLENGE ISN'T CURRENTLY UNDER CONSIDERATION SEAGRAM SAID YESTERDAY THAT TIME WARNER MANAGEMENT HAS WELCOMED ITS INVESTMENT AND MR LEVIN TIME WARNER'S CHAIRMAN SAID IN THE COMPANY'S STATEMENT THAT WE ARE APPRECIATIVE THAT SEAGRAM'S INVESTMENT IS AN AFFIRMATION OF OUR STRATEGIC DIRECTION AND PERFORMANCE BUT PEOPLE CLOSE TO TIME WARNER SAY MR LEVIN HAS BEEN SUSPICIOUS SINCE SEAGRAM MADE THE INITIAL INVESTMENT WITHOUT ALERTING TIME WARNER AND IS CONCERNED ABOUT PROTECTING HIS MANAGEMENT MR BRONFMAN WAS ADVISED BY INVESTMENT BANKER ALLEN & CO A LONGTIME FORCE IN THE ENTERTAINMENT INDUSTRY CURRENTLY ALLEN IS ADVISING QVC NETWORK INC IN ITS HOSTILE BID FOR PARAMOUNT SEAGRAM ALSO WAS ADVISED BY MICHAEL OVITZ CHAIRMAN OF HOLLYWOOD'S CREATIVE ARTISTS AGENCY MANY IN HOLLYWOOD SPECULATE THAT MR BRONFMAN AND HIS ADVISERS ULTIMATELY AIM TO SEEK BOARD REPRESENTATION OR A VOICE IN MANAGEMENT MR OVITZ AND ALLEN DECLINED TO COMMENT BOTH MESSRS OVITZ AND BRONFMAN HAVE MET SEPARATELY WITH MR LEVIN TO REASSURE HIM THAT THEIR INTENTIONS ARE FRIENDLY BUT TIME WARNER HAS REMAINED COOL TO THOSE OVERTURES AND WITH THE POISON PILL THEY HAVE NOW DRAWN A LINE IN THE SAND SAID ONE WALL STREET EXECUTIVE JOHNNIE L ROBERTS CONTRIBUTED TO THIS ARTICLE 9401210071 940121 HERD INSTINCT HOW INMAN COULD GO FROM STAR TO BIZARRE' IN SUCH A SHORT TIME IN WASHINGTON REPUTATION AND REALITY GET BLURRED STROBE TALBOTT'S ROLE THE MEDIA AND THE MASSAGE BY THOMAS E RICKS AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN BOBBY RAY INMAN WENT HOME TO TEXAS A DECADE AGO REPORTERS IN AUSTIN PUT ON A SHOW IN WHICH THE CAST SANG BOBBY RAY SUPERSTAR/ARE YOU THE MESSIAH THAT THEY SAY YOU ARE AFTER THE SHOW ADM INMAN ASKED FOR THE CROWN WORN BY THE BOBBY RAY CHARACTER TODAY MANY IN WASHINGTON ARE WEARING RED FACES AND WONDERING HOW SOMEONE WHO APPEARED BIZARRE AS ONE SENATOR PUT IT IN A TELEVISED NEWS CONFERENCE COULD HAVE COME SO CLOSE TO BECOMING DEFENSE SECRETARY OVERSEEING THE WORLD'S MOST POWERFUL MILITARY ARSENAL THE KEY TO ADM INMAN'S RISE AND TO HIS STARTLING FALL LIES IN HIS REPUTATION IN WASHINGTON ADM INMAN'S RENOWN MADE HIM LARGER THAN LIFE EXEMPTING HIM FROM THE USUAL SCRUTINY BUT WHEN THAT CAREFULLY BURNISHED REPUTATION BEGAN TO GET SMUDGED EN ROUTE TO A JOB THAT WOULD HAVE CAPPED OFF AN ALREADY DISTINGUISHED STRING OF GOVERNMENT POSTS ADM INMAN EXITED VIA A PERFORMANCE EARLIER THIS WEEK THAT EVEN HE NOW CONCEDES WAS ODD HE SHOWED HAIRTRIGGER SENSITIVITY TO EVEN THE SMALLEST SLIGHTS AND ATTACKED HIS CRITICS WITH THE SAME SORT OF UNSUBSTANTIATED CHARGES THAT HE ACCUSED THEM OF USING AGAINST HIM IF ADM INMAN PUT TOO MUCH STOCK IN HIS REPUTATION SO DID THE WASHINGTON ESTABLISHMENT HIS AURA OF BRILLIANCE DAZZLED THE WHITE HOUSE MEMBERS OF CONGRESS AND THE PRESS WHICH FAIRLY GUSHED OVER HIS NOMINATION DEMOCRAT SEN JOSEPH BIDEN OF DELAWARE CALLED HIM THE MOST QUALITY GUY IN THE FEDERAL GOVERNMENT THAT ADM INMAN WENT SO FAR TOWARD CONFIRMATION WITH SO LITTLE SCRUTINY RAISES QUESTIONS ABOUT HOW PEOPLE ADVANCE IN WASHINGTON AND ABOUT WHETHER THE POLITICAL INSIDERS WHO WERE SO QUICK TO BLESS HIS NOMINATION REALLY KNEW HIM OR JUST HIS REPUTATION LEFT BEWILDERED ARE SUPPORTERS SUCH AS MISSISSIPPI SEN TRENT LOTT I GAVE IT A RINGING ENDORSEMENT THE REPUBLICAN SENATOR SAID OF ADM INMAN'S NOMINATION NOW I AM EMBARRASSED THAT I JOINED THE CHORUS THAT SAID THIS IS THE MAN' WERE WE SUPPOSED TO KISS HIS RING BUT IF THE INMAN TALE EXPOSES WASHINGTON'S SUSCEPTIBILITY TO THE BLINDING POWER OF REPUTATION IT ALSO HIGHLIGHTS A VULNERABILITY IN THE CLINTON ADMINISTRATION NAMELY ITS TENDENCY TO OVERVALUE IQ AND CREDENTIALS AND UNDERVALUE STAMINA AND COMMON SENSE IN ADM INMAN THE PRESIDENT HAD A MAN WITH A STERLING REPUTATION AND BIPARTISAN SUPPORT THE INGREDIENTS FOR A QUICK POLITICAL FIX AT A TIME WHEN MR CLINTON'S FOREIGNPOLICY TEAM WAS WOBBLING EVEN SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE AND CRITIC OF MR CLINTON ON A VARIETY OF MILITARY QUESTIONS ISSUED A BLESSING IMMEDIATELY AFTER THE PRESIDENT NAMED THE RETIRED NAVAL OFFICER THE CHOICE ALSO SHOWS THE CONTINUING CLOUT OF MR CLINTON'S OLD FRIENDS IT WAS STROBE TALBOTT THE PRESIDENT'S OXFORD HOUSEMATE WHO FIRST URGED MR CLINTON TO PICK ADM INMAN TOUTING THE INTELLIGENCE EXPERT AT A LATENOVEMBER MEETING ALSO ATTENDED BY CHIEF OF STAFF THOMAS MCLARTY FORMER JOINT CHIEFS OF STAFF CHAIRMAN WILLIAM CROWE AND VICE PRESIDENT AL GORE WHO ALSO VOICED SUPPORT FOR MR INMAN ADM CROWE SUGGESTED A FEW BUSINESSMEN SAYS ONE PERSON FAMILIAR WITH THE MEETING BUT THERE WASN'T ANY GREAT INTEREST BECAUSE STROBE HAD DONE SUCH A GOOD JOB OF SELLING BOBBY ULTIMATELY IT WAS PRESIDENT CLINTON'S CONSIDERABLE PERSUASIVE POWERS PLUS SOME NUDGING FROM SECRETARY OF STATE WARREN CHRISTOPHER THAT PERSUADED A RELUCTANT ADM INMAN TO TAKE THE JOB AND MR TALBOTT RECENTLY NOMINATED TO BE DEPUTY SECRETARY OF STATE TALKED TO MR INMAN ABOUT HOW THE REVAMPED NATIONAL SECURITY TEAM WOULD WORK MR TALBOTT YESTERDAY DECLINED TO DISCUSS THE SITUATION YET EARLY IN THE PROCESS ADM INMAN INDICATED A FUNDAMENTAL AMBIVALENCE ABOUT TAKING THE JOB HE TOLD THE WHITE HOUSE THAT HE ONLY WANTED TO BE A PARTTIME WASHINGTONIAN HE SAID HE WOULD TAKE A CONDO IN WASHINGTON BUT KEEP HIS HOMES IN TEXAS AND COLORADO SPENDING MANY WEEKENDS THERE THE ADMINISTRATION EVIDENTLY MISSED THE SIGNAL WHEN HE LEARNED TWO WEEKS AGO FROM THREE DIFFERENT SOURCES THAT HIS CONFIRMATION HEARINGS WOULDN'T BE A CORONATION MR INMAN WAS CRUSHED HE FEARED SOME REPUBLICAN SENATORS WANTED TO ROUGH ME UP A LITTLE DIRTY ME UP A BIT HE SAID IN AN INTERVIEW YESTERDAY TAKING A HINT IT APPEARED FROM NEW YORK TIMES COLUMNIST WILLIAM SAFIRE ADM INMAN FELT THE LAWMAKERS MIGHT PORTRAY THE FORMER DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE UNDER PRESIDENT REAGAN AS SOMEONE WHO LEAKED INFORMATION TO THE PRESS AND HAD UNDERCUT HIS BOSS WILLIAM CASEY BUT MOST OF ALL THE SAGA OF BOBBY INMAN'S CAREER IS A STORY OF HOW A REPUTATION CAN BE BUILT IN WASHINGTON THROUGH ADROIT HANDLING OF MEMBERS OF CONGRESS AND THE MEDIA AMONG THEM MR TALBOTT WHO WAS A TIME MAGAZINE COLUMNIST BEFORE JOINING THE STATE DEPARTMENT AND WHO KNEW MR INMAN FROM THOSE DAYS AND FROM MEETINGS AT THE ASPEN INSTITUTE A FOREIGNPOLICY THINK TANK WASHINGTON AFTER ALL IS A CITY THAT TURNS ON REPUTATION WHILE POWER IN OTHER PARTS OF THE COUNTRY MIGHT BE MEASURED BY WEALTH LINEAGE OR THE SIZE OF CORPORATE COFFERS THE NATION'S CAPITAL TENDS TO MEASURE PEOPLE BY PERCEPTION TO BE SEEN AS BRIGHT OR POWERFUL IS TO A DEGREE TO BE BRIGHT AND POWERFUL THAT IS PARTLY BECAUSE WASHINGTON RUNS ON ANOTHER INTANGIBLE INFORMATION AND AS HEAD OF THE NATIONAL SECURITY AGENCY UNDER PRESIDENT CARTER THE NATION'S GLOBAL ELECTRONICEAVESDROPPING AGENCY MR INMAN POSSESSED AN INSIDER'S VIEW OF THE WORLD IN THE COINAGE OF WASHINGTON HE WAS RICH IN THE 1970S AND 1980S ADM INMAN MOVED FROM ANONYMITY TO BUILD A REPUTATION IN WASHINGTON THAT WAS ALMOST UNPARALLELED AFTER DECADES OF QUIETLY LABORING IN MILITARY INTELLIGENCE HE BECAME THE INTELLIGENCE COMMUNITY'S LIAISON WITH BOTH CONGRESS AND THE WASHINGTON MEDIA JOHN F LEHMAN JR PRESIDENT REAGAN'S NAVY SECRETARY RECALLS WATCHING HIM BUILD CONFIDANTS ON BOTH SIDES OF THE AISLE IN CONGRESS HE WAS ALWAYS HONEST SO PEOPLE CONFIDED IN HIM SAYS MR LEHMAN IT ENABLED HIM TO PUT TOGETHER FULLER PICTURES THAN ANYBODY ELSE WHETHER IT WAS WASHINGTON INTRIGUES OR KREMLIN INTRIGUES WHEN I WAS IN GOVERNMENT I TALKED TO HIM A LOT MAINLY TO GET ADVICE THE ADMIRAL'S ADVICE OFTEN WENT INTO POLITICAL MATTERS FAR BEYOND DEFENSE OR INTELLIGENCERELATED ISSUES HE WAS CONSTANTLY BUZZING AROUND LIKE A HONEYBEE PIECING TOGETHER PICTURES OF WHAT WAS GOING ON ADDS MR LEHMAN THE REASON INMAN HAD SO MUCH STAYING POWER WITH SO MANY DIFFERENT PEOPLE IS THAT PEOPLE OVER TIME FOUND HE GENERALLY CAME UP WITH THE RIGHT ANSWERS AND HE WAS NOT LOATH TO SHARE IT CONGRESSIONAL OVERSIGHT OF THE INTELLIGENCE COMMUNITY LED TO SOME LEAKS TO PLUG THEM OR AT LEAST TO LIMIT THE DAMAGE THEY CAUSED MR INMAN WAS ASSIGNED TO TALK TO REPORTERS AND THEIR EDITORS AMONG THE PEOPLE MR INMAN CAME TO KNOW WERE SOME OF WASHINGTON'S BESTKNOWN REPORTERS SUCH AS THE WASHINGTON POST'S BOB WOODWARD AND FREELANCE INVESTIGATOR SEYMOUR HERSH INDEED ADM INMAN HAS BEEN HELPFUL TO REPORTERS FOR THE WALL STREET JOURNAL TOO BEYOND THAT MANY WASHINGTON REPORTERS CAN REMEMBER ENCOUNTERS WITH MR INMAN IN WHICH HE WAS HELPFUL AND CANDID VOLUNTEERING HIS HOME TELEPHONE NUMBER IF ANY FURTHER INFORMATION WAS NEEDED IT WAS THE JOURNALISTIC EQUIVALENT OF A DREAM DATE MR INMAN WAS SEEMINGLY TIRELESS IN HIS CULTIVATION OF CAPITOL HILL ONCE WHEN HE WAS TESTIFYING BEFORE REP JOSEPH ADDABBO THE NEW YORK DEMOCRAT INTERRUPTED TO SAY HE DIDN'T UNDERSTAND THE INTELLIGENCE GIBBERISH THAT MR INMAN WAS USING MR INMAN THEN TOOK AN HOUR TO PAINSTAKINGLY EXPLAIN HIS POINT AFTER HE FINISHED REP ADDABBO TOLD HIS DEFENSEAPPROPRIATIONS SUBCOMMITTEE THAT MR INMAN COULD HAVE ANYTHING HE NEEDED MR INMAN'S CRITICS MOST OF WHOM DIDN'T SURFACE UNTIL AFTER HIS RECENT IMPLOSION TAKE A LESS BENIGN VIEW OF MR INMAN'S RISE ANGELO CODEVILLA A FORMER SENATE AIDE AND CURRENTLY A HOOVER INSTITUTION FELLOW SAYS MR INMAN'S TACTIC WAS TO FLATTER MEMBERS OF CONGRESS AND LET THEM IN ON SECRETS INMAN'S FLATTERY IS STRAIGHTFORWARD FEW COULD UNDERSTAND THIS BUT YOU ' SUCH WORDS AND A STRING OF TIPS WERE ENOUGH TO CONVINCE MOST OF INMAN'S CONTACTS LIBERAL AND CONSERVATIVE THAT THEY WERE FELLOW GENIUSES ANOTHER FOE WILLIAM WISECARVER A FORMER COUNSEL TO THE SENATE ARMED SERVICES COMMITTEE SAYS INMAN IS A PERFECT EXAMPLE OF WHAT WE'VE BEEN SEEING IN WASHINGTON PEOPLE WHO MOVE UP THE LADDER ON THE BACKS OF OTHERS AND THEN THEY GET TO THE TOP OF THE LADDER AND THERE'S NO ONE ELSE TO BLAME BUT THOSE VOICES WEREN'T HEARD ON DEC 16 WHEN MR INMAN WAS NOMINATED TO BE DEFENSE SECRETARY INDEED ASIDE FROM GOP REP JOHN KASICH OF OHIO WHO WORRIED ALOUD THAT MR INMAN WAS A LEAKER AND A MANIPULATOR THE NOMINATION WAS GREETED WITH GLOWING REVIEWS SEN NUNN ALL BUT CONFIRMED MR INMAN THE DAY OF THE ANNOUNCEMENT YESTERDAY SEN NUNN DECLINED TO COMMENT FROM THERE THE SPIN CYCLE WENT INTO HIGH GEAR REPUBLICAN SENS JOHN MCCAIN OF ARIZONA AND WILLIAM COHEN OF MAINE BOTH CALLED HIM BRILLIANT AS DID MUCH OF THE REST OF POLITICAL WASHINGTON DEMOCRATIC SEN CARL LEVIN OF MICHIGAN AND FORMER DEFENSE SECRETARY DICK CHENEY PRONOUNCED THE CHOICE EXCELLENT REPORTERS REACHED EVEN HIGHER FOR NEW SUPERLATIVES ABC WHITE HOUSE CORRESPONDENT BRIT HUME FOR EXAMPLE NOTED MR INMAN'S GLITTERING MILITARY CREDENTIALS AMID THE HOSANNAS ONE DISSENTING VOICE SPOKE OUT WHEN HE WAS INTRODUCED IN THE ROSE GARDEN VIRTUALLY THE FIRST WORDS OUT OF ADM INMAN'S MOUTH WERE I AM AN IMPERFECT HUMAN BEING HE WENT ON TO DISCUSS HIS AMBIVALENCE ABOUT THE JOB IN THE FOLLOWING WEEKS HIS FEET GREW COLDER AFTER A LIFETIME OF OPERATING BEHIND THE SCENES AND CONTROLLING THE FLOW OF INFORMATION THE NOMINEE FOUND HIMSELF THE FOCUS OF MEDIA REPORTS BEYOND HIS CONTROL AND THE SUBJECT OF RUMORS ABOUT HIS BUSINESS DEALINGS AND PERSONAL LIFE THE EXPERIENCE ONLY CONFIRMED WHAT HIS GUT AND HIS WIFE WERE TELLING HIM THAT HE REALLY DIDN'T WANT THE JOB WHAT'S MORE ADM INMAN WENT FROM ONCE SITTING ATOP THE WORLD'S MOST SOPHISTICATED INTELLIGENCE APPARATUS TO WAITING IN AUSTIN AND OFTEN HEARING DISTURBING BUT NOT NECESSARILY ACCURATE INTIMATIONS OF TROUBLE IN WASHINGTON WHITE HOUSE AND PENTAGON AIDES KNOWING THAT ADM INMAN HAD BEEN SELECTED PARTLY BECAUSE OF HIS EXCELLENT RELATIONS WITH CONGRESS PLANNED TO DEFER TO HIM ON HANDLING CAPITOL HILL BUT HE FAILED TO REACH OUT TO OLD FRIENDS IN THE SENATE SUCH AS SEN MCCAIN WHOSE FATHER ONCE HAD BEEN ADM INMAN'S COMMANDER THE NOMINEE WAS PAINED AND SURPRISED BY THE FEW CRITICAL COMMENTS WRITTEN ABOUT HIM MAINLY BY MR SAFIRE OF THE TIMES I HAVE NO RECOLLECTION OF HIM EVER BEING ATTACKED BY ANYONE SAYS SEN MCCAIN THAT'S THE TREATMENT HE ALWAYS GOT BEFORE ADM INMAN SAYS THAT HE HAD BEEN CRITICIZED BEFORE MOST NOTABLY BY SAFIRE AND HIS CLIQUE OF SUPPORTERS BUT THIS TIME HE CONCLUDED HE WOULD FACE A DAILY DIET OF THIS HE TOLD THE WHITE HOUSE ON JAN 6 THAT HE WAS PULLING OUT BUT IN DEFERENCE TO THE PRESIDENT'S LOSS OF HIS MOTHER AND TRAVELS IN EUROPE HELD OFF MAKING IT PUBLIC UNTIL THIS WEEK EVEN ADM INMAN CONCEDES THAT HIS PERFORMANCE THIS WEEK WAS STRANGE WOULD I DO IT A LOT DIFFERENTLY HE ASKS YES BUT IT'S BEEN DONE HE SAYS HIS MAIN REGRET IS THAT HE DIDN'T SAY EARLIER THAT HE WASN'T TRULY INTERESTED I LET TWO THINGS GET CONFUSED HE CONCLUDES I RESPONDED TO THE PRESIDENT SAYING HE NEEDS ME AND I FORGOT HOW MUCH I'VE CHANGED IN THE LAST 10 YEARS OTHERS ARE LESS RESTRAINED SENATE MINORITY LEADER BOB DOLE OF KANSAS WHOM ADM INMAN CITED AS A REASON FOR BOWING OUT SAYS YOU KIND OF WONDER HOW THEY PICKED THIS PERSON SEEMS TO ME THAT MAYBE THE PRESIDENT OR SOMEBODY WHO RECOMMENDED HIM TO THE PRESIDENT SHOULD HAVE HAD A LITTLE CLOSER LOOK BUT EVEN MR DOLE HAD GREETED THE NOMINATION BY SAYING ADM INMAN WAS A GOOD SELECTION MANY FRIENDS WERE LEFT BEWILDERED RETIRED ARMY MAJ GEN EDWARD ATKESON WHO HAS KNOWN MR INMAN SINCE THEY ROOMED TOGETHER AS YOUNG OFFICERS IN EUROPE IN 1953 SAYS IT CERTAINLY WASN'T THE BOBBY INMAN I'D SEEN BEFORE IT WAS A NEW PERSON HE SHOT HIMSELF IN THE FOOT AT THE WHITE HOUSE AIDES STAND BY ADM INMAN EVEN THOUGH STUNNED BY HIS PUBLIC MELTDOWN THIS MAN SERVED HIS COUNTRY FOR 30 YEARS AND DOESN'T DESERVE TO BE JUDGED ON ONE PRESS CONFERENCE SAYS WHITE HOUSE COUNSELOR DAVID GERGEN CHIEF OF STAFF MCLARTY ECHOES THAT VIEW SAYING HE IS A PERSON OF DISTINCTION HE SERVED FOUR OR FIVE PRESIDENTS AN ADMIRAL IN THE NAVY HIS RECORD REALLY SPEAKS FOR HIMSELF IN AUSTIN LIFE IS CALMING DOWN FOR ADM INMAN ONE THING I CAN SAY AS I RELAX HE SAID YESTERDAY IS THAT I CAN REST COMFORTABLY THAT NO PRESIDENT IS EVER AGAIN GOING TO ASK ME TO BE IN THE CABINET DAVID ROGERS AND JOHN J FIALKA CONTRIBUTED TO THIS ARTICLE 9401210070 940121 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 ALLIED WASTE INDUSTRIES INC 100 OF SENIOR SUBORDINATED NOTES DUE FEB 1 2004 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO INC CHASE MANHATTAN CORP 150 MILLION OF SUBORDINATED NOTES DUE JAN 15 2009 WAS PRICED AS 65S AT 99022 TO YIELD 6604 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DUAL DRILLING CO 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JAN 15 2004 PRICED AT PAR TO YIELD 9875 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND IS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF NOTES DUE FEB 1 1999 PRICED AT PAR TO YIELD 523 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WEREPRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTAGE CORP 200 MILLION OF DEBENTURES DUE JAN 27 1997 PRICED AT PAR TO YIELD 4525 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 14 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GULF CANADA RESOURCES LTD 300 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE JAN 15 2004 PRICED AS 925S AT 99367 TO YIELD 935 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HOUSEHOLD FINANCIAL CORP 200 MILLION OF NOTES DUE FEB 1 2009 PRICED AT PAR TO YIELD 645 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE 10YEAR TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY SALOMON BROTHERS INC HOUSEHOLD FINANCIAL IS A UNIT OF HOUSEHOLD INTERNATIONAL MITCHELL ENERGY & DEVELOPMENT CORP 100 MILLION OF SENIOR NOTES DUE FEB 15 1997 PRICED AT PAR TO YIELD 51 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ORCHARD SUPPLY HARDWARE CORP 100 MILLION OF SENIOR NOTES DUE FEB 15 2002 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ORCHARD SUPPLY HARDWARE IS A UNIT OF ORCHARD SUPPLY HARDWARE STORES CORP PLANTRONICS INC 85 MILLION OF SENIOR NOTES DUE JAN 15 2001 PRICED AT PAR TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC RP SCHERER CORP 100 MILLION OF SENIOR NOTES DUE FEB 1 2004 PRICED AS 675S AT 99268 TO YIELD 6852 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC RP SCHERER IS A UNIT OF RPS CORP WHITMAN CORP 100 MILLION OF DEBENTURES DUE FEB 1 2006 PRICED AT PAR TO YIELD 65 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE 10YEAR TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HOST MARRIOTT CORP 175 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SCICLONE PHARMACEUTICALS INC TWO MILLION COMMON SHARES PRICED AT 2325 EACH ACCORDING TO THE COMPANY MONTGOMERY SECURITIES WAS LEAD UNDERWRITER ILLINOIS 2496 MILLION OF REFUNDING GENERALOBLIGATION BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 38 IN 1998 TO 495 IN 2008 MOODY'S RATED THE BONDS DOUBLEA AND S&PASSIGNED A DOUBLEAMINUS RATING BOMBARDIER CORP 400 MILLION OF ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY MERRILL LYNCH & CO AND SCOTIA MCLEOD USA INC THE CERTIFICATES WERE BACKED BY LINES OF CREDIT TO NEARLY 3900 US DEALERS OF EQUIPMENT RANGING FROM RECREATIONAL SKI EQUIPMENT TO CONSUMER ELECTRONICS AND LAWNMOWERS THE ISSUE WAS SOLD THROUGH SPECIALPURPOSE TRUST BOMBARDIER RECEIVABLES MASTER TRUST I THE 3765 MILLION OF FLOATINGRATE CLASS A ASSETBACKED CERTIFICATES SERIES 19941 WAS PRICED TO FLOAT 20 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS THE 235 MILLION OF FIXEDRATE CLASS B ASSETBACKED CERTIFICATES SERIES 19941 WAS PRICED AS 52S AT 998125 TO YIELD 532 A SPREAD OF 73 BASIS POINTS ABOVE THE TREASURY'S 6875 NOTES OF APRIL 1997 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 325 YEARS ADDITIONAL CREDIT SUPPORT WAS PROVIDED BY A 76 SUBORDINATED SELLER'S INTEREST AND A RESERVE FUND OF 75 BASIS POINTS BOMBARDIER CORP IS A UNIT BOMBARDIER INC AB SPINTAB SWEDEN ONE BILLION SWEDISH KRONOR OF 7 EUROBONDS DUE FEB 22 1999 AT ISSUE PRICE 101575 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT PAR TO YIELD 7 FEES 1875 POINTS FROM FEB 1 MORGAN STANLEY & CO INTERNATIONAL LTD WILL ASSUME ALL OBLIGATIONS AND RESPONSIBILITIES OF MORGAN STANLEY INTERNATIONAL BACOB OVERSEAS LTD BELGIUM 300 MILLION DANISH KRONER OF 575 EUROBONDS DUE MARCH 11 1998 AT ISSUE PRICE 102125 VIA UNIBANK AT COMANAGERS' BREAKEVEN PRICE 1005 BONDS YIELD 561 GUARANTOR BACOB BANK FEES 1625 CREDIT SUISSE FINANCE GIBRALTAR LTD SWISS PARENT 100 MILLION OF RANGE FLOATINGRATE EURONOTES DUE AUGUST 1995 AT ISSUE AND FIXED REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD INTEREST PAID QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 075 POINT INTEREST ACCRUES ON BUSINESS DAYS DURING COUPON PERIOD WHEN THREEMONTH LIBOR EQUAL OR LESS THAN 4 IN THE FIRST SIX MONTHS 425 IN THE SECOND SIX MONTHS AND 525 IN THE LAST SIX MONTHS MINIMUM COUPON ZERO GUARANTOR CREDIT SUISSE FEES 015 COMMONWEALTH BANK OF AUSTRALIA AUSTRALIAN AGENCY 75 MILLION OF CORRIDOR FLOATINGRATE EUROBONDS DUE FEB 26 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST FLOATS AT ONE POINT OVER THREEMONTH LIBOR AND IS PAID ON DAYS WHEN THREEMONTH LIBOR FALLS WITHIN DEFINED RANGES OF THREEMONTH DURATION EACH RANGE ONE 3 TO 4 RANGE TWO 3 TO 425 RANGE THREE 3 TO 45 RANGE FOUR 3 TO 475 RANGE FIVE 3 TO 5 RANGE SIX 3 TO 525 RANGE SEVEN 3 TO 55 RANGE EIGHT 3 TO 6 GUARANTOR AUSTRALIA FEES 015 CREDIT FONCIER DE FRANCE FRENCH AGENCY 15 BILLION SWEDISH KRONOR OF 65 EUROBONDS DUE FEB 22 1999 AT ISSUE PRICE 101625 VIA SWISS BANK CORP REOFFERED AT PAR TO YIELD 65 A MARGIN OF 20 BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES 1875 DSL FINANCE NV AMSTERDAM GERMANY 10 BILLION SPANISH PESETAS OF 7875 MATADOR BONDS DUE FEB 10 2004 AT ISSUE PRICE 101435 VIA BANCO SANTANDER DE NEGOCIOS AND MIDLAND BANK PLC MADRID BONDS PRICED TO YIELD 792 AT COMANAGERS' BREAKEVEN PRICE 99685 A MARGIN OF ABOUT 11 BASIS POINTS OVER COMPARABLE SPANISH GOVERNMENT BOND THE BOND'S OPEN MARKET PRICE IS 998 TO YIELD 791 A MARGIN OF 10 BASIS POINTS OVER REFERENCE BONOS GUARANTOR DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK FEES 1875 EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 MILLION OF 6 EUROBONDS DUE NOV 26 2004 AT ISSUE AND FIXED REOFFER PRICE 98636 VIA SAMUEL MONTAGU & CO BONDS PRICED TO YIELD 617 FLAT THE YIELD ON 675 UK GILT OF 2004 FEES 0325 GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION OF CORRIDOR FLOATINGRATE EURONOTES DUE FEB 22 1996 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO INTEREST FLOATS AT 75 BASIS POINTS OVER THE THREEMONTH DOLLAR LIBOR INTEREST PAYABLE QUARTERLY SUBJECT TO THREEMONTH LIBOR FALLING WITHIN FOLLOWING SIXMONTH RANGES RANGE ONE 3 TO 4 RANGE TWO 3 TO 475 RANGE THREE 3 TO 55 RANGE FOUR 36 FEES 02 KURAYA CORP JAPAN 140 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 05 NOTES DUE MAR 31 1998 AT PAR VIA NOMURA BANK SWITZERLAND LTD EACH NOTE CONVERTIBLE FROM MARCH 1 TO MARCH 16 1998 AT 25 PREMIUM OVER CLOSING SHARE PRICE JAN 26 TERMS FIXED FEES 1625 MORGAN GUARANTY TRUST CO NEW YORK US 200 MILLION OF RANGE FLOATINGRATE EURONOTES DUE FEB 22 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL INTEREST PAID QUARTERLY AT THREEMONTH LIBOR PLUS ONE POINT PROVIDED THE THREEMONTH LIBOR FALLS WITHIN FOLLOWING RANGES 3 TO 4 FOR FIRST SIX MONTHS 325 TO 45 FOR SECOND SIX MONTHS 3375 TO 55 FOR THIRD SIX MONTHS 3375 TO 6 FOR LAST SIX MONTHS FEES 015 RABOBANK NEDERLAND NETHERLANDS 200 BILLION LIRE OF 77 EUROBONDS DUE FEB 23 2004 ISSUE PRICE 1018 VIA PARIBAS CAPITAL MARKETS LTD AND RABOBANK NEDERLAND AT COMANAGERS' BREAKEVEN PRICE 998 THE YIELD 773 FEES TWO SWEDEN SOVEREIGN 10 BILLION PORTUGUESE ESCUDOS OF 83 EUROBONDS DUE FEB 23 1999 AT ISSUE PRICE 1012 VIA BANCO PORTUGUES DE INVESTIMENTO SA AT COMANAGERS' BREAKEVEN PRICE 997 BONDS YIELD 838 A MARGIN OF 10 BASIS POINTS BELOW COMPARABLE NEW PORTUGUESE TREASURYS FEES 1625 9401210069 940121 FOREIGN EXCHANGE DOLLAR RETREATS AS BUNDESBANK DECLINES TO CUT RATES SIGNALS IT WON'T ACT SOON BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RETREATED AGAINST THE MARK YESTERDAY AFTER THE BUNDESBANK AGAIN DECLINED TO CUT ITS KEY INTEREST RATES AND SENT STRONG SIGNALS IT ISN'T LIKELY TO DO SO ANY TIME SOON RECENT DOLLAR EUPHORIA ALSO EASED SHARPLY FOLLOWING RELEASE OF DISAPPOINTING WEEKLY JOBLESS NUMBERS THAT INDICATED A SLOWING OF THE US ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17380 MARKS DOWN FROM 17460 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11140 YEN UP SLIGHTLY FROM 11135 YEN STERLING WAS TRADING AT 14970 UP FROM 14925 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11125 YEN AND AT 17373 MARKS YESTERDAY THE GERMAN CENTRAL BANK ANNOUNCED ITS DISCOUNT RATE WOULD REMAIN AT 575 WHILE ITS LOMBARD RATE WOULD HOLD AT 675 SETTING OFF AGGRESSIVE BUYING OF THE MARK THE BANK LATER SAID IT ALSO FROZE THE RATE FOR SECURITIESREPURCHASE AGREEMENTS OR REPOS AT 6 AT LEAST THROUGH EARLY FEBRUARY REPOS ARE THE MECHANISM USED BY THE BUNDESBANK TO NUDGE MONEY MARKET RATES UP OR DOWN ALTHOUGH BOTH DECISIONS WERE WIDELY EXPECTED TRADERS NOTED THAT SIGNS THAT THE US ECONOMY MAY BE LESS ROBUST THAN THOUGHT THEN PROMPTED DOLLAR BULLS TO LIQUIDATE THEIR POSITIONS THE US LABOR DEPARTMENT SAID JOBLESS CLAIMS ROSE BY 23000 TO 380000 IN THE WEEK ENDED JAN 15 THIS COMPARED WITH ECONOMISTS' FORECASTS OF A 14000 DECLINE DOLLAR JITTERS WERE INCREASED BY YET A THIRD BUNDESBANK ANNOUNCEMENT THAT ITS RESERVE REQUIREMENTS FOR GERMAN BANKS WOULD BE REDUCED EFFECTIVE MARCH 1 TO SOME ANALYSTS THAT INDICATED THE CENTRAL BANK REMAINS CONCERNED ABOUT OVERLY HIGH MONEYSUPPLY GROWTH IN THE NEAR TERM AND THUS WILL BE RELUCTANT TO CUT OFFICIAL RATES IN FEBRUARY THE DOLLAR HIT ITS INTRADAY HIGH OF 17512 MARKS JUST BEFORE THE FIRST BUNDESBANK ANNOUNCEMENT THAT IT DECIDED AGAINST ANY CHANGE IN ITS BENCHMARK INTEREST RATES THE SUCCESSIVE BUNDESBANK ANNOUNCEMENTS AND THE US ECONOMIC DATA THEN KNOCKED DOWN THE CURRENCY TO ITS LOW OF 17345 MARKS FOUR HOURS LATER THE BUNDESBANK SAID IT WOULD EASE RESERVE REQUIREMENTS IN PART BY UNIFYING SIGHT DEPOSITS FOR BOTH DOMESTIC AND FOREIGN INVESTORS AT 5 FROM A RANGE OF 65 TO 121 THE MOVE IS EXPECTED TO HELP THE COMPETITIVENESS OF GERMAN BANKS A LONGSTANDING BUNDESBANK GOAL AND FOLLOWS A SIMILAR EASING OF RESERVE REQUIREMENTS LAST YEAR THE CENTRAL BANK SAID THE LIQUIDITY EFFECTS OF THE MOVE WOULD BE OFFSET BY A REDUCTION IN THE AMOUNTS AVAILABLE THROUGH SECURITIESREPURCHASE ARRANGEMENTS HOWEVER THE DECISION TO DEFER THE RESERVE EASING TO MARCH 1 INDICATED TO MANY TRADERS THAT THE BANK REMAINS NERVOUS ABOUT THE EFFECT ANY ADDED LIQUIDITY WOULD HAVE ON GERMAN MONEYSUPPLY GROWTH AND THUS WILL BE LESS LIKELY TO CUT ITS INTEREST RATES WHAT THIS MEANS IS THAT THE INTERESTRATE ENVIRONMENT ISN'T GOING TO CHANGE IN THE NEAR TERM SAID ERIC NICKERSON SENIOR ECONOMIST AT THE BANK OF AMERICA IN SAN FRANCISCO THE FACT THAT THE US JOBLESSCLAIMS NUMBERS WERE WEAKER THAN EXPECTED SORT OF LEFT PEOPLE THINKING IT WILL BE LONGER BEFORE INTERESTRATE DIFFERENTIALS BEGIN TO NARROW BETWEEN THE US AND GERMANY HE SAID IT TAKES A LOT OF THE STEAM OUT OF THE DOLLAR HIGHER INTEREST RATES ARE SEEN AS A LURE FOR INVESTORS AND GENERALLY HAVE THE EFFECT OF SUPPORTING CURRENCIES 9401210068 940121 POLITICS & POLICY FISKE IN PROBE OF WHITEWATER PLANS TO TAKE TESTIMONY FROM THE CLINTONS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROBERT FISKE JR WHO WAS APPOINTED INDEPENDENT COUNSEL TO INVESTIGATE PRESIDENT CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CO SAID HE WOULD TAKE TESTIMONY FROM THE PRESIDENT AND HILLARY RODHAM CLINTON UNDER OATH MR FISKE A FORMER US ATTORNEY IN NEW YORK PROMISED A COMPLETE THOROUGH AND IMPARTIAL PROBE OF THE WHITEWATER AFFAIR ATTORNEY GENERAL JANET RENO SAID AT A NEWS CONFERENCE THAT SHE CHOSE MR FISKE BECAUSE HE IS AN EXCELLENT PROSECUTOR WHO IS RUGGEDLY INDEPENDENT I HAVE TALKED WITH MR FISKE AND TOLD HIM THAT I WANT HIM TO DO EVERYTHING HE THINKS PROPER AND APPROPRIATE TO MAKE SURE THAT HE IS TRULY INDEPENDENT SHE SAID MR FISKE PERSONALLY WROTE THE CHARTER THAT OUTLINES HIS DUTIES THE SPECIFIC LANGUAGE HE SAID AUTHORIZES ME TO INVESTIGATE WHETHER ANY INDIVIDUALS OR ENTITIES HAVE COMMITTED A VIOLATION OF ANY FEDERAL CRIMINAL LAW RELATING IN ANY WAY TO THE PRESIDENT'S OR MRS CLINTON'S RELATIONSHIPS WITH MADISON GUARANTY SAVINGS & LOAN ASSOCIATION A LITTLE ROCK ARK THRIFT WHITEWATER DEVELOPMENT OR CAPITAL MANAGEMENT SERVICES INC A FAILED LITTLE ROCK INVESTMENT COMPANY THE CLINTONS WERE PARTNERS IN WHITEWATER WITH JAMES MCDOUGAL OWNER OF NOWDEFUNCT MADISON AND HIS FORMER WIFE SUSAN WHO RECEIVED A 300000 LOAN FROM CAPITAL MANAGEMENT DAVID HALE A FORMER MUNICIPAL JUDGE WHO OWNED CAPITAL HAS CHARGED THAT THE CLINTONS AND MR MCDOUGAL PRESSED HIM INTO MAKING THE LOAN AS A WAY OF BOLSTERING MADISON IN ADDITION THE RESOLUTION TRUST CORP HAS ASKED FOR AN INVESTIGATION OF POSSIBLE DIVERSION OF FUNDS FROM MADISON TO WHITEWATER AND TO PAY CERTAIN CAMPAIGN AND OTHER DEBTS OF THENARKANSAS GOV CLINTON IN THE MID1980S MR FISKE ALSO WILL LOOK AT THE INVOLVEMENT IN MADISONRELATED MATTERS BY ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL MR HUBBELL WHO WAS MRS CLINTON'S LAW PARTNER WAS HIRED BY FEDERAL REGULATORS TO SUE MADISON'S ACCOUNTANTS TO RECOUP TAXPAYER MONEY SPENT WHEN THE THRIFT FAILED THE REGULATORS LATER SAID THEY DIDN'T KNOW THE FIRM HAD A LONG RELATIONSHIP WITH MADISON THE CLINTONS' WHITEWATER PAPERS WERE KEPT BY FORMER WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER WHO COMMITTED SUICIDE MR FISKE SAID HE WILL INVESTIGATE THE SUICIDE TO THE EXTENT IT INVOLVES WHITEWATERRELATED EVENTS LAST NIGHT MR CLINTON SAID HE DIDN'T KNOW IN ADVANCE ABOUT THE SELECTION OF MR FISKE AND SAID HE ABSOLUTELY WOULD COOPERATE WITH THE INVESTIGATION ASKED BY TALKSHOW HOST LARRY KING ON CNN ABOUT MR FISKE'S PLAN TO TAKE SWORN TESTIMONY FROM HIM AND HIS WIFE MR CLINTON SAID WHATEVER THEY WANT TO DO WE WILL BE GLAD TO DO IT THE MAIN THING I WANT TO DO IS TO JUST HAVE THAT TURNED OVER TO HIM SO WE CAN GO BACK TO WORK HE ADDED I JUST WANT TO DO MY JOB I DON'T WANT TO BE DISTRACTED BY THIS ANY MORE I DIDN'T DO ANYTHING WRONG MR FISKE PLANS TO OPEN AN OFFICE IN LITTLE ROCK HE ADDED THAT HE WOULD SUBMIT REPORTS TO CONGRESS ON HIS ACTIVITIES THE NEW INDEPENDENT COUNSEL ISN'T REQUIRED TO REPORT TO MS RENO MR FISKE WHO IS 63 YEARS OLD WAS NAMED US ATTORNEY FOR NEW YORK BY PRESIDENT FORD IN 1976 AND HE WAS RETAINED BY PRESIDENT CARTER A SELFDESCRIBED LIFELONG REGISTERED REPUBLICAN MR FISKE SAID HE WOULD TAKE A LEAVE OF ABSENCE FROM THE LAW FIRM DAVIS POLK & WARDELL WHERE HE IS A LITIGATION PARTNER MR FISKE SAID HE WON'T USE THE CAREER JUSTICE DEPARTMENT PEOPLE WHO HAD BEEN INVESTIGATING THE WHITEWATER AFFAIR MS RENO SAID SHE CALLED THOSE PROBES TO A HALT WHEN SHE ANNOUNCED LAST WEEK THAT SHE WOULD APPOINT AN INDEPENDENT COUNSEL REP JIM LEACH R IOWA WHO HAD LONG URGED MS RENO TO APPOINT AN INDEPENDENT COUNSEL CALLED MR FISKE A QUALITY APPOINTMENT AN INDIVIDUAL OF APPROPRIATE BACKGROUND AND INTEGRITY SENATE MINORITY LEADER BOB DOLE R KAN HAS CALLED FOR A SEPARATE CONGRESSIONAL INVESTIGATION INTO THE WHITEWATER AFFAIR MR FISKE DISCOURAGED THAT SAYING I THINK THE HISTORY OF THESE SITUATIONS IS THAT IT IS DIFFICULT TO CONDUCT THIS KIND OF INVESTIGATION AT THE SAME TIME A CONGRESSIONAL INVESTIGATION IS GOING ON MR FISKE SAID HE WOULD GIVE NO INTERVIEWS THAT WOULD COME AS NO SURPRISE TO SOME LAWYERS WHO PREDICTED THAT BASED ON HIS HANDLING OF THE NEWS MEDIA IN OTHER CASES HE IS LIKELY TO KEEP HIS DISTANCE FROM THE PRESS DURING HIS INVESTIGATION SAID CAREY R DUNNE A PARTNER AT DAVIS POLK WHO HAS WORKED CLOSELY WITH MR FISKE HE ISN'T THE KIND OF LAWYER WHO LOOKS FOR THE SPOTLIGHT WADE LAMBERT IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401210067 940121 PAYING THE PRICE LIFE INSURERS NOW FIND THEY ARE HELD LIABLE FOR ABUSES BY AGENTS BLAMING A FEW BAD APPLES FAILED NEW YORK LIFE IN COSTLY CIVIL LAWSUIT TOUGHER REGULATION LIKELY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CORPUS CHRISTI TEXAS OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFEINSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF 27000 BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOTFREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE CO FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST 65000 AN ASTOUNDING 21 MILLION NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFEINSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR HERRERA ON INDIVIDUAL ROGUE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFEINSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE CO OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS 60000 PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO 40 MILLION IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK & CO'S ALLSTATE CORP AND PRUDENTIAL INSURANCE CO OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFEINSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SEN HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REP JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS ILLUSTRATING POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFEINSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED 30 LIFEINSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COS GUARDIAN LIFE INSURANCE CO OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE CO AND MUTUAL LIFE INSURANCE CO OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFEINSURANCE INDUSTRY SINCE 1905 WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FARREACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONGTERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME 65 BILLION ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAIDUP ADDITION MORTALITY CHARGE AND WAIVEOFPREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE SAYS JAMES HUNT A WOBURN MASS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFEINSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLELIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLELIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A 45YEAROLD MALE WHO BUYS A 300000 WHOLELIFE POLICY MIGHT PAY ABOUT 6800 A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN 10 YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO 55 OF THE FIRSTYEAR PREMIUMS OR 3750 ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN 1985 AT AGE 32 DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR CRUZ SPURNED MR HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR HERRERA LUCRATIVEWHOLELIFE POLICY MR HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLELIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR HERRERA MR HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR 27000 FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A 300000 WHOLELIFE INSURANCE POLICY BECAUSE MR LOPEZ WAS 70 THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN 60 MILES WEST OF CORPUS CHRISTI MR HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OILFIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR HERNANDEZ SUDDENLY CAME INTO MONEY IN 1987 WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A 331000 SETTLEMENT MR HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARDSELL CAMPAIGN AIMED AT GETTING MR HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR HERNANDEZ AGREED TO INVEST 100000 SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A 100000 LIFEINSURANCE POLICY THEN HE INCREASED HER COVERAGE TO 1 MILLION BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO 27000 A YEAR MRS HERNANDEZ NEVER GOT A BILL MR HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY 1991 MRS HERNANDEZ GOT A 27000 BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR HERRERA SOLD THE POLICY TO MRS HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL IT WAS DO OR DIE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERMLIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US MR DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS HERNANDEZ AND ORDERED IT TO PAY HER 65000 FOR ACTUAL DAMAGES 1 MILLION FOR MENTAL ANGUISH 5 MILLION FOR LEGAL FEES AND 15 MILLION IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF 26 BILLION SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFEINSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER 9401210066 940121 WITNESS SAYS PRUDENTIAL DIDN'T INFLATE PAYOUTS ON PARTNERSHIPS BY BORROWING BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW ORLEANS PRUDENTIAL SECURITIES INC DIDN'T INFLATE PAYOUTS ON ITS ENERGY LIMITED PARTNERSHIPS BY BORROWING FUNDS TO DISTRIBUTE TO INVESTORS AN EXPERT WITNESS FOR THE BROKERAGE FIRM TESTIFIED THE TESTIMONY OF KENNETH BURKE AN AUDIT DIRECTOR AT ERNST & YOUNG CAME IN A FAIRNESS HEARING IN A FEDERAL COURT HERE OVER A PROPOSED SETTLEMENT BY PRUDENTIAL ABOUT 130000 INVESTORS HAVE ACCUSED THE BROKERAGE FIRM IN A CLASSACTION SUIT OF MISLEADING THEM ON THE RISKS AND REWARDS OF 145 BILLION IN 35 OIL AND GAS PARTNERSHIPS WHICH HAVE SUNK TO ABOUT HALF OF THEIR ORIGINAL VALUE PRUDENTIAL BORROWED WHEN THEY VIEWED THE BUSINESS NEED DICTATED IT MR BURKE TESTIFIED WHEN ASKED IF THE FIRM BORROWED FUNDS TO INFLATE INVESTOR DISTRIBUTIONS HE SAID I JUST DON'T SEE IT MR BURKE'S TESTIMONY IS THE STRONGEST TO DATE FOR PRUDENTIAL ON ONE OF THE MOST SIGNIFICANT ALLEGATIONS IN THE CLASSACTION CASE BUT MR BURKE MADE HIS STATEMENTS EVEN AS INTERNAL PRUDENTIAL DOCUMENTS UNCOVERED IN THE CASE SUGGEST PRUDENTIAL KNEW IN THE MID1980S THAT THERE WERE PROBLEMS IN PAYING OUT DISTRIBUTIONS TO INVESTORS FROM ENERGY PARTNERSHIPS IN A 1985 MEMO SUMMARIZING A MEETING OF PRUDENTIAL PARTNERSHIP INVESTORS WILLIAM PITTMAN A FORMER SENIOR PARTNERSHIP EXECUTIVE SAID HE WAS CONCERNED THAT BECAUSE SOME OF THE FIRM'S PARTNERSHIPS WERE BORROWING MONEY FOR CURRENT NEEDS THE RETURNS BEING PAID TO INVESTORS DID NOT REFLECT THE TRUE RETURNS BUT WERE INFLATED PRUDENTIAL PREVIOUSLY HAS SAID THAT IT BORROWED 57 MILLION FOR A HANDFUL OF PARTNERSHIPS IN 1985 AND 1986 IN ONLY TWO INSTANCES DID ITS PARTNERSHIP DISTRIBUTIONS FALL SHORT OF CASH FLOW AND THOSE INSTANCES INVOLVED BORROWING LESS THAN 1 MILLION AND WERE LATER DISCLOSED TO INVESTORS THE BROKERAGE FIRM HAS SAID PRUDENTIAL SAID THE BORROWING WAS APPROPRIATE BECAUSE IT WAS FOR CAPITAL ITEMS THE FAIRNESS HEARING HELD BEFORE FEDERAL JUDGE MARCEL LIVAUDAIS JR IS LIKE A MINITRIAL FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THOUGH JUDGE LIVAUDAIS IS EXPECTED TO APPROVE PRUDENTIAL'S SETTLEMENT OFFER AFTER THE HEARING ENDS TODAY THE ACCUSATIONS RAISED HERE REPRESENT A MICROCOSM OF THE CRITICISM DOGGING PRUDENTIAL OVER SALES OF 8 BILLION OF PARTNERSHIPS PRUDENTIAL HAD PROPOSED PAYING INVESTORS A TOTAL OF 120 MILLION IN CASH TO SETTLE THE CASE THAT'S NOW ABOUT 90 MILLION BECAUSE NEARLY 16000 OF THE 130000 INVESTORS HAVE DECIDED TO OPT OUT BUT THE SETTLEMENT OFFER STILL IS FAR HIGHER THAN AN EARLIER OFFER OF 37 MILLION IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM THE EARLIER SETTLEMENT WAS WITHDRAWN LAST YEAR AMID HEAVY CRITICISM FROM PLAINTIFFS' ATTORNEYS THE CURRENT SETTLEMENT OFFER WHICH IS BACKED BY MOST PLAINTIFF LAWYERS WOULD BRING TO ABOUT 127 BILLION OR AN AVERAGE OF 87 CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL 145 BILLION INVESTMENT THE INVESTORS ALREADY HAVE RECEIVED DISTRIBUTIONS OF MORE THAN 650 MILLION AND WILL GET AN ADDITIONAL 491 MILLION FROM THE SALE OF THE PARTNERSHIPS TO PARKER & PARSLEY CO A TEXAS OIL AND GAS COMPANY PRUDENTIAL WAS ONE OF WALL STREET'S BIGGEST SELLERS OF LIMITEDPARTNERSHIP INVESTMENTS MANY OF WHICH HAVE SOURED AND TRIGGERED LAWSUITS THE PRUDENTIAL CLASSACTION CASE IS BELIEVED TO BE THE LARGEST INVOLVING PARTNERSHIPS IT ALSO REPRESENTS THE BIGGEST SINGLE CHUNK OF DISPUTED DEALS IN PRUDENTIAL'S MASSIVE PARTNERSHIP MESS INVESTORS WHO OPT OUT OF THE CLASSACTION CASE HAVE SEVERAL OPTIONS THEY CAN PURSUE PRIVATE ACTIONS AGAINST PRUDENTIAL IN COURT OR THROUGH ARBITRATION OR THEY CAN TRY TO TAP INTO A 330 MILLION REPARATIONS FUND SET UP BY THE FIRM IN A BROADER SETTLEMENT WITH FEDERAL AND STATE REGULATORS IN OCTOBER SEPARATELY ANOTHER PRUDENTIAL WITNESS TESTIFIED AT THE HEARING THAT HUGE LOSSES SUFFERED BY ENERGYPARTNERSHIP INVESTORS STEMMED SOLELY FROM AN UNEXPECTED PLUNGE IN OIL PRICES NOT ANY SYSTEMATIC FRAUD THE OUTOFPOCKET LOSSES ARE FULLY ACCOUNTED FOR BY THE FAILURE OF OIL PRICES TO ATTAIN THE LEVELS ANTICIPATED BY OIL EXPERTS TESTIFIED BEN C BALL JR AN ENERGY CONSULTANT AND FORMER GULF OIL CO VICE PRESIDENT THAT'S THE WHOLE STORY THERE ARE NO VILLAINS TO LOOK FOR THERE ARE NO CULPRITS MR BALL SAID BUT MR BALL'S TESTIMONY WAS ATTACKED BY STUART GOLDBERG A PLAINTIFFS' ATTORNEY WHO IS OBJECTING TO THE SETTLEMENT WHY WHEN OIL PRICES WENT FROM 13 TO 18 A BARREL DID THE LIMITED PARTNERSHIP FORMED WHEN PRICES WERE AT 13 A BARREL LOSE OVER 23 OF ITS VALUE MR GOLDBERG ASKED MR BALL RESPONDED THAT SOME PARTNERSHIPS PARTICULARLY THE LATER DEALS INVESTED MORE IN GAS THAN OIL PROPERTIES IN GENERAL GAS PRICES DO NOT TRACK OIL PRICES MR BALL SAID 9401210065 940121 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN RICHARD W SCOTT WAS NAMED VICE PRESIDENT AND GENERAL MANAGER NEW VENTURES AND PRESIDENT AT THE GTE VANTAGE INC UNIT OF THIS TELECOMMUNICATIONS SUPPLIER MR SCOTT 49 YEARS OLD SUCCEEDS PAUL S HARRINGTON 52 WHO IS RETIRING MR SCOTT WAS MOST RECENTLY EXECUTIVE DIRECTOR BUSINESS ACQUISITION AT THE GTE GOVERNMENT SYSTEMS CORP UNIT 9401210063 940121 INTERNATIONAL BRIEF NESTLE SA SALES CLIMBED 54 IN 1993 RISE IN PROFIT TO BE POSTED NESTLE SA ZURICH SAID THAT SALES IN 1993 CLIMBED 54 TO 575 BILLION SWISS FRANCS 3937 BILLION FROM 545 BILLION FRANCS IN 1992 AND THAT EARNINGS FOR THE YEAR WERE HIGHER AS WELL THE SALES FIGURES FOR 1993 WERE IN LINE WITH EXPECTATIONS EXPRESSED AT A NEWS CONFERENCE IN NOVEMBER BY CHAIRMAN HELMUT MAUCHER HE SAID AT THE TIME THAT PROFIT AND SALES WERE BOTH EXPECTED TO RISE ABOUT 5 IN THE YEAR FINAL 1993 EARNINGS FIGURES AS WELL AS THE PROPOSED DIVIDEND PAYOUT WILL BE ANNOUNCED MARCH 24 THE GIANT SWISS FOOD AND BEVERAGE COMPANY ALSO SAID IT EXPECTS AN INCREASE IN SALES AND PROFIT FOR 1994 UNLESS THE RECESSION IN EUROPE DEEPENS AND PROVIDED EXCHANGE RATES DON'T TAKE A VERY UNFAVORABLE TURN VISAVIS THE SWISS FRANC CONSOLIDATION OF COMPANIES ACQUIRED DURING 1993 CAUSED SALES TO CLIMB 3 THE COMPANY SAID IT ADDED THAT IT SAW GOOD VOLUME GROWTH ESPECIALLY IN ASIA AND LATIN AMERICA BUT ALSO IN NORTH AMERICA OVERALL GROWTH IN SALES VOLUME EXCLUDING ACQUISITIONS AND DIVESTITURES ROSE 17 NESTLE SAID IT ADDED THAT THE GROWTH RATE ACCELERATED STARTING LAST FALL 9401210062 940121 INTERNATIONAL WORLD ECONOMY EAST ASIA'S SPENDING ON INFRASTRUCTURE IS BONANZA TO WORLD'S MANUFACTURERS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INDONESIA WANTS TO DOUBLE ITS ELECTRICITY OUTPUT CHINA EXPECTS 1995 PASSENGER AND FREIGHT MOVEMENTS TO BE 47 HIGHER THAN IN 1990 THAILAND HOPES NEW FREEWAYS AND TRANSIT SYSTEMS WILL EASE THE CHAOS THAT BANGKOK CALLS TRAFFIC VIETNAM WOULD LIKE TELEPHONES THAT WORK THESE ARE BITS OF A BORING CONCEPT CALLED INFRASTRUCTURE BUT IT IS EXCITING STUFF TO MANUFACTURERS AROUND THE WORLD AND NOWHERE IS IT MORE ROUSING THAN IN EAST ASIA WHICH CLAIMS THE WORLD'S MOST BOISTEROUS ECONOMIES TO MAINTAIN THEIR SOARING GROWTH RATES THOSE COUNTRIES MUST SPEND VAST SUMS A WORLD BANK ECONOMIST FIGURES INFRASTRUCTURE SPENDING HAS REACHED 75 BILLION A YEAR AND SOON WILL BE 100 BILLION SUCH NUMBERS CAUSE GREAT JOY IN COMPANIES THAT MAKE THINGS LIKE GENERATORS TELEPHONE SYSTEMS AND LOCOMOTIVES SAYS AN OFFICIAL OF ABB ASEA BROWN BOVERI LTD THE SWISSSWEDISH MAKER OF POWER PLANTS EVERYONE IS THERE THIS IS A BONANZA GOING ON OUT THERE THE IMPACT IS GLOBAL NOT ONLY DOES THIS SPENDING LET EAST ASIANS PROLONG A BOOM IT ALSO BRINGS RELIEF TO SAGGING ECONOMIES ELSEWHERE GERMANY'S EXPORTS TO EAST ASIA WHICH INCLUDE LARGE AMOUNTS OF INFRASTRUCTURE ITEMS ARE RISING AT A 10 CLIP AND HAVE A MEASURABLE IMPACT ON ITS RECOVERY THIS IS BECOMING MORE AND MORE IMPORTANT TO THE GERMAN ECONOMY SAYS MARTIN HUFNER CHIEF ECONOMIST OF MUNICH'S BAYERISCHEN VEREINSBANK THE EFFECT ON CERTAIN COMPANIES IS GREATER ALCATELALSTHOM'S ALCATEL NV THE FRENCH TELECOMMUNICATIONS COMPANY HAS 9 OF ITS SALES IN ASIA BUT HOPES TO DOUBLE THIS RATIO IN 10 YEARS GENERAL ELECTRIC CO'S POWER SYSTEMS DIVISION EXPECTS TO GET 45 OF ITS NEW ORDERS FROM ASIA BEFORE LONG ABB EXPANDING FROM A EUROPEAN BASE HOPES ASIA EVENTUALLY WILL PROVIDE SOME 30 OF ITS BUSINESS THE LARGEST OVERSEAS PROJECT IN AMERICAN TELEPHONE & TELEGRAPH CO'S HISTORY IS IN CHINA GERMANY'S SIEMENS AG IS COMPETING FOR RAILWAY PROJECTS ACROSS THE REGION UNLIKE MOST OF EASTERN EUROPE WHICH ALSO HAS HUGE NEEDS EAST ASIA CAN AFFORD TO BUY MOST NATIONS THERE HAVE CONVERTIBLE CURRENCIES HIGH SAVINGS RATIOS AND GREAT EXPECTATIONS EVEN IN THE SHORT RUN THIS GIVES THEM GREATER DOMESTIC RESOURCES PLUS EASIER ACCESS TO OUTSIDE FINANCE AMERICANS OFTEN SAY THEY HAVE SPECIAL ADVANTAGES THOUGH COMPETITORS MAY DISAGREE SOME LIKE GE CLAIM BETTER TECHNOLOGY OTHERS FIND BUYERS LIKE THE CHINESE TILT TOWARD THE US FOR POLITICAL REASONS AT TIMES IN ANY CASE US MULTINATIONALS ARE DOING WELL THOUGH MANY MEDIUMSIZED COMPANIES REMAIN SURPRISINGLY RELUCTANT TO VENTURE ABROAD YET IT IS DIFFICULT TO PREDICT WINNERS IN THIS GLOBAL RACE ESPECIALLY AT THE JOB CREATION LEVEL THAT IS BECAUSE EVEN THIS OFTUNGLAMOROUS BUSINESS REFLECTS THE COMPLEXITIES OF MODERN COMMERCE SUCH AS FINANCING DESPITE ASIA'S WEALTH OUTSIDE FINANCING IS OFTEN ESSENTIAL FOR CLOSING DEALS THIS CAN GIVE EUROPEAN AND JAPANESE COMPANIES A CRUCIAL ADVANTAGE GREATER ACCESS TO OFFICIAL SOFT LOANS ALCATEL FOR EXAMPLE USED BELGIAN AND FRENCH AID TO START BIG IN CHINA AND HAS USED AID FROM AUSTRALIA NORWAY AND ITALY FOR OTHER CONTRACTS THE GOODS INVOLVED THEN COME FROM ALCATEL FACTORIES IN THOSE NATIONS CREATING JOBS THERE SOURCING OTHER BUSINESS CONSIDERATIONS ALSO CAN DETERMINE WHERE PRODUCTS ARE MADE WESTINGHOUSE ELECTRIC CORP SOMETIMES HAS GENERATORS BUILT BY ITS JAPANESE PARTNER MITSUBISHI AND VICE VERSA ABB OFTEN EXPORTS COMPONENTS FROM AN AMERICAN SUBSIDIARY COMBUSTION ENGINEERING WHILE SCHNEIDERS SA ANOTHER FRENCH COMPANY MAY RELY ON ITS US AFFILIATE SQUARE D THUS A CONTRACT SIGNED BY EXECUTIVES FROM SAY STOCKHOLM OR ORLANDO DOESN'T NECESSARILY CREATE WORK NEARBY EXCHANGE RATES JAPAN HAS DOMINATED THE POWER GENERATION EQUIPMENT MARKET IN SOUTHEAST ASIA POWER GENERATION IS THE BIGGEST SLICE OF THE INFRASTRUCTURE MARKET AND IS STRONG IN OTHER FIELDS BUT IT IS FACING A STRONGCURRENCY PROBLEM LIKE THAT OF THE US IN THE MID80S ASIAN STATES WITH DOLLAR INCOMES AND YEN DEBTS DON'T WANT LARGE NEW OBLIGATIONS TO JAPAN AND ARE TURNING ELSEWHERE TEMPORARILY AT LEAST THIS MAY HURT COMPANIES LIKE MITSUBISHI ELECTRIC CORP HITACHI LTD AND TOSHIBA ENGINEERING & CONSTRUCTION CO FOR NOW THOUGH THERE IS BUSINESS FOR ALMOST EVERYONE AND MORE TO COME 9401210061 940121 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY RICHARD B SCHMITT OWNED BY MINORITIES BIG COMPANIES ELITE LAW FIRMS AND GOVERNMENT AGENCIES ALL ANNOUNCED PROGRAMS IN RECENT YEARS TO STEER MORE WORK TO MINORITY LAW FIRMS THE RESULT SO FAR SOME PROGRESS BUT LESS THAN MANY PEOPLE HAD HOPED ROBERT LOWE IS ONE LAWYER WHO HAS COME OUT AHEAD BUT NOT BEFORE HAVING TO DISPEL SOME STEREOTYPES MR LOWE AN ASIANAMERICAN REMEMBERS AN INTERVIEW HE HAD WITH AN EMPLOYEE OF THE RESOLUTION TRUST CORP IN 1990 ABOUT WORKING ON FAILEDTHRIFT CASES FOR THE FEDERAL AGENCY YOU GUYS HAVE SECRETARIES AND WORD PROCESSORS DON'T YOU HE RECALLS THE AGENCY REPRESENTATIVE ASKING AS A GRADUATE OF THE RESPECTED UNIVERSITY OF TEXAS LAW SCHOOL WHO WAS ALREADY COUNSELING THE LIKES OF NORDSTROM INC AND PORSCHE CARS NORTH AMERICA INC MR LOWE 43 YEARS OLD FOUND THE QUERY A LITTLE AMUSING PEOPLE THINK YOU CAN HARDLY WALK IF YOU ARE A MINORITYOWNED FIRM HE SAYS THE RTC SOON LEARNED THAT LOWE & ASSOCIATES HAD BOTH SECRETARIES AND COMPUTERS AND THE AGENCY IS NOW A SATISFIED CUSTOMER HALF OF THE ANNUAL INCOME OF THE SIXLAWYER FIRM BASED IN ALEXANDRIA VA COMES FROM A SCORE OF THRIFT CASES IT HANDLES FOR THE AGENCY I AM GLAD I HAD THE OPPORTUNITY TO PUT MY FOOT IN THE DOOR HE SAYS BUT WHILE LOWE & ASSOCIATES IS A MAJOR BENEFICIARY OF THE RECENT PUSH TO INCREASE THE PROFILE OF MINORITY LAW FIRMS SOME OTHER MINORITY SHOPS ARE FACING A TOUGH TIME ONE PROBLEM IS THAT CORPORATE LEGAL DEPARTMENTS AND EVEN THE RTC SEEKING TO CUT COSTS HAVE REDUCED THEIR RELIANCE ON OUTSIDE COUNSEL IN ADDITION NOT EVERY GROUP THAT SAYS IT WANTS TO STEER WORK TO MINORITY FIRMS ENDS UP DOING SO WHERE THE INITIATIVES HAVE WORKED THEY HAVE SERVED THE CLIENTS' NEEDS WHILE SPARKING THE FORMATION AND GROWTH OF MINORITY FIRMS THOUGH MOST MINORITYOWNED FIRMS ARE STILL QUITE SMALL WITH ABOUT 40 LAWYERS AT MOST THE ELEVATED DEMAND FOR THEIR WORK HAS LED TO THE CREATION OF SOME SIGNIFICANT STRATEGIC ALLIANCES WITH BIGGER MORE ESTABLISHED FIRMS LAST FALL FOR EXAMPLE JONES DAY REAVIS & POGUE ONE OF THE US'S LARGEST LAW FIRMS FORMED AN ALLIANCE WITH SIXLAWYER WHITE HILL SIMS & WIGGINS A BLACKOWNED FIRM IN DALLAS TERMS CALL FOR JONES DAY TO GET A PIECE OF THE WORK THAT WHITE HILL MAY PULL IN AS A RESULT OF GOVERNMENT OR CORPORATE EFFORTS TO USE MINORITY LAW FIRMS WHITE HILL IN TURN GETS ACCESS TO JONES DAY'S RESEARCH AND SUPPORT FACILITIES AND A FANCY NEW ADDRESS VIA A CUTRATE LEASE ON EXCESS SPACE JONES DAY HAD IN ITS OFFICE IN DOWNTOWN DALLAS SO FAR EVERYONE IS OPTIMISTIC ABOUT THE ARRANGEMENT WHICH RICHARD KNEIPPER A PARTNER WITH JONES DAY IN DALLAS VIEWS PRAGMATICALLY I AM NOT INTERESTED IN DOING GOOD BUT RATHER MAKING MONEY FOR BOTH FIRMS AND IF I CAN DO SOME GOOD IN THE PROCESS THAT WOULD BE GREAT HE SAYS I HOPE THEY TURN OUT TO BE JUST AN AWESOMELY SUCCESSFUL FIRM IN SOME OTHER INSTANCES THOUGH SUCH PARTNERSHIPS HAVE PROVEN TO BE FRAUGHT WITH PITFALLS DISPUTES CAN ARISE OVER APPORTIONING BILLINGS BETWEEN THE FIRMS AND OVER WHO BEARS LEGAL LIABILITY IN CASE OF ALLEGED MALPRACTICE MINORITY FIRMS BEING SMALLER CAN ALSO BE LESS STABLE THAN THEIR PARTNERS GRAHAM & JAMES CALLED OFF A MAJOR JOINT VENTURE WITH A MINORITY FIRM THREE YEARS AGO AFTER GRAHAM'S WOULDBE PARTNER RAN INTO FINANCIAL TROUBLES AND SOME PEOPLE EXPRESS CONCERN THAT THE ARRANGEMENTS SOMETIMES TURN INTO MECHANISMS FOR BIG FIRMS TO ATTRACT BUSINESS TARGETED FOR MINORITIES WITHOUT GIVING A FAIR SHARE OF WORK TO THE MINORITY JOINT VENTURE PARTNER THE VENTURES THAT FOCUS ON GETTING WORK FROM THE RTC SEEM TO HAVE BEEN AMONG THE MOST LUCRATIVE SO FAR MR LOWE'S SUCCESS GREW FROM A JOINT VENTURE WITH MORRISON & HECKER OF KANSAS CITY WHICH FOUND ITS BIG RTC PRACTICE THREATENED A FEW YEARS AGO WHEN THE AGENCY DECIDED TO CUT OFF FIRMS UNLESS THEY HAD TIES TO MINORITIES OTHER BIG FIRMS ENTERING SUCH ALLIANCES INCLUDE THE LIKES OF HUGHES HUBBARD & REED BASED IN NEW YORK ATLANTA'S POWELL GOLDSTEIN FRAZER & MURPHY AND BROBECK PHLEGER & HARRISON SAN FRANCISCO BUT EVEN THIS SORT OF VENTURE DOESN'T ALWAYS WORK DONALD HILL A PARTNER IN WHITE HILL IS ON HIS SECOND JOINT VENTURE WITH A BIG FIRM THE FIRST A HIGHLY TOUTED TWOYEAR ALLIANCE WITH THE DALLAS OFFICE OF ARTER & HADDEN A BIG CLEVELANDBASED FIRM DIDN'T BRING MUCH NEW WORK HIS WAY HE SAYS AN ARTER & HADDEN PARTNER FORREST SMITH DISPUTES THE IDEA THAT THE VENTURE WAS A FLOP AND SAYS THE FIRM IS STILL KEEN ON THE IDEA OF JOINT VENTURES IF YOU WANT TO CRACK THE CORPORATE COMMUNITY THE AVERAGE MINORITY LAW FIRM IS NOT GOING TO BE ABLE TO GET THROUGH THAT DOOR THAT FIRM IS GOING TO NEED SOME WAY TO GET IN THERE HE SAYS CORPORATIONS HAVE BEEN WARMING TO MINORITY FIRMS ALTHOUGH THE BOTTOM LINE HAS BEEN UNEVEN MUCH OF THE CORPORATE INTEREST HAS BEEN CHANNELED THROUGH THE ABA MINORITY COUNSEL DEMONSTRATION PROGRAM WHICH SET OUT IN 1988 TO HOOK UP MINORITY LAWYERS WITH CORPORATE LEGAL DEPARTMENTS ABOUT 140 CORPORATIONS HAVE PLEDGED TO RETAIN LAWYERS FROM A LIST OF MINORITY LAWYERS THAT THE ABA MAINTAINS ALTHOUGH LATELY THE GROWTH IN SIGNATORIES HAS SLOWED AND FEES GENERATED BY THE PROGRAM ON THE ORDER OF 40 MILLION TO 50 MILLION A YEAR HAVE BEEN ABOUT FLAT IN THE PAST TWO YEARS MANY FIRMS SAY THE PROGRAM WAS INVALUABLE IN THE BEGINNING BUT QUESTION WHETHER ECONOMICS ARE PROMPTING SOME COMPANIES TO RETREAT SAYS RENAYE CUYLER OF GORAYEB & CUYLER A MINORITYOWNED NEW YORK FIRM AND A PARTICIPANT IN THE ABA PROGRAM THE OLDBOY NETWORK IS STILL ALIVE AND WELL SOURCE 1993 SURVEY OF LAW FIRM ECONOMICS ALTMAN WEIL PENSA PUBLICATIONS INC 9401210060 940121 BUSINESS BRIEF SHURGARD INC PARTNERSHIPS MODIFY PROPOSAL TO CONSOLIDATE INTO REIT THE GENERAL PARTNERS OF 17 LIMITED PARTNERSHIPS THAT OWN SELFSERVICE STORAGE CENTERS MODIFIED A PROPOSAL TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST THE NEW PROPOSAL GIVES LIMITED PARTNERS THE OPTION TO RECEIVE AS MUCH AS 180 MILLION IN CASH ALONG WITH STOCK IN THE NEW COMPANY THE ORIGINAL PROPOSAL OFFERED SIXYEAR NOTES ALONG WITH STOCK THE REVISED BID COMPETES WITH A SWEETENED BID BY UHAUL INTERNATIONAL INC TO ACQUIRE THE PARTNERSHIPS FOR 3575 MILLION IN CASH THE GENERAL PARTNERS YESTERDAY RECOMMENDED A REJECTION OF THE LATEST UHAUL OFFER THE GENERAL PARTNERS HAVE VALUED THE PARTNERSHIPS' ASSETS AT 3875 MILLION AND CONTEND THE CONSOLIDATED REIT COULD BE VALUED AT EVEN MORE BY THE STOCK MARKET THE LIMITED PARTNERSHIPS ARE MANAGED BY SHURGARD INC OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL OF THE PARTNERSHIPS PHOENIXBASED UHAUL IS CONTROLLED BY THE SHOEN FAMILY THROUGH ITS NEVADA HOLDING COMPANY AMERCO 9401210059 940121 WHO'S NEWS GRANCARE INC GRANCARE INC CULVER CITY CALIF EDWARD V NED REGAN WAS ELECTED A DIRECTOR OF THIS LONGTERM HEALTHCARE FACILITIES OPERATOR SUCCEEDING CYRUS SAMRAD 64 YEARS OLD WHO RESIGNED MR REGAN 63 IS PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THE JEROME LEVY ECONOMICS INSTITUTE HE PREVIOUSLY WAS NEW YORK STATE COMPTROLLER FROM 1978 TO 1992 9401210058 940121 BUSINESS BRIEF MAXTOR CORP COMPANY SAYS KEY CREDITORS TO KEEP OPEN LINE OF CREDIT MAXTOR CORP SAN JOSE CALIF SAID THAT KEY CREDITORS AGREED TO KEEP OPEN ITS LINE OF CREDIT DESPITE ITS RECENT VIOLATION OF CERTAIN TERMS OF THE LOAN THE WAIVER OF MAXTOR'S DEFAULT BY CIT GROUP/BUSINESS CREDIT INC BUYS TIME FOR THE CASHSTARVED COMPUTER DISKDRIVE MAKER TO OBTAIN A 150 MILLION CASH INFUSION FROM SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO WHICH WAS ANNOUNCED LAST AUGUST AT HYUNDAI'S REQUEST MAXTOR EXTENDED TO FEB 3 THE CLOSING DATE OF THE TRANSACTION BECAUSE OF DELAYS IN GETTING KOREAN GOVERNMENT APPROVAL MAXTOR SAID THE LOAN DEFAULT OCCURRED DEC 25 THE END OF ITS FISCAL THIRD QUARTER RESULTS FOR THAT QUARTER WILL BE ANNOUNCED IN EARLY FEBRUARY 9401210057 940121 BUSINESS BRIEF PROCTER & GAMBLE CO PARAGON TRADE IS NAMED BY COMPANY IN PATENT SUIT PARAGON TRADE BRANDS INC SAID IT HAS BEEN NAMED IN A PATENTINFRINGEMENT LAWSUIT FILED BY PROCTER & GAMBLE CO IN DELAWARE FEDERAL COURT REGARDING CERTAIN FEATURES OF ITS DISPOSABLE DIAPERS PARAGON A FEDERAL WAY WASH MAKER OF PRIVATELABEL DIAPERS SAID NEITHER OF THE TWO PROCTER & GAMBLE PATENTS CAN BE VALIDLY CONSTRUED TO COVER THE COMPANY'S PRODUCTS A REPRESENTATIVE FOR PROCTER & GAMBLE CINCINNATI WASN'T AVAILABLE TO COMMENT A SPOKESWOMAN FOR PARAGON SAID IT HADN'T RECEIVED AN OFFICIAL COPY OF THE SUIT AND THEREFORE COULDN'T COMMENT FURTHER 9401210056 940121 BUSINESS BRIEF ANTHEM ELECTRONICS INC FOURTHQUARTER NET FELL 94 AFTER A 78 MILLION CHARGE ANTHEM ELECTRONICS INC SAN JOSE CALIF SAID FOURTHQUARTER NET INCOME PLUMMETED 94 MAINLY BECAUSE OF A 78 MILLION CHARGE FOR THE SALE OF ITS EAGLE TECHNOLOGY UNIT THE DISTRIBUTOR OF COMPUTER PARTS SAID IT EARNED 472000 OR FOUR CENTS A SHARE COMPARED WITH 79 MILLION OR 64 CENTS A SHARE A YEAR EARLIER SALES ROSE 23 TO 1849 MILLION FROM 1500 MILLION FOR 1993 ANTHEM EARNED 18 MILLION OR 146 A SHARE DOWN 41 FROM 304 MILLION OR 248 A SHARE IN 1992 SALES ROSE 23 TO 6632 MILLION FROM 5384 MILLION THE SALE OF EAGLE TECHNOLOGY TO ARTISOFT INC WAS COMPLETED JAN 9401210055 940121 BUSINESS BRIEF WALDBAUM INC WORKERS WIN 18 MILLION IN BACK WAGES AND DAMAGES THE US LABOR DEPARTMENT SAID A FEDERAL COURT IN NEW YORK AWARDED 224 EMPLOYEES OF WALDBAUM INC MORE THAN 18 MILLION IN BACK WAGES AND DAMAGES DUE TO VIOLATIONS OF RECORDKEEPING AND OVERTIMELABOR LAWS IN OCTOBER JUDGE CHARLES H TENNEY HAD DETERMINED THE COMPANY UNINTENTIONALLY BUT IMPROPERLY VIOLATED THE LABOR LAWS AND ASKED THE LABOR DEPARTMENT TO CALCULATE BACK WAGES OWED TO EMPLOYEES JUDGE TENNEY ALSO ISSUED AN ORDER PROHIBITING WALDBAUM FROM FURTHER VIOLATIONS WALDBAUM IS A UNIT OF GREAT ATLANTIC & PACIFIC TEA CO A GROCERY CHAIN MAJORITYOWNED BY TENGELMANN GROUP OF GERMANY IN MONTVALE NJ AN A&P SPOKESMAN SAID THAT THE VIOLATIONS WERE UNINTENTIONAL AND THAT EMPLOYEES ARE NOW FULLY PAID 9401210054 940121 BUSINESS BRIEF MR COFFEE INC FIRM SAYS PRELIMINARY TALKS UNDER WAY ON TAKEOVER BID MR COFFEE INC SAID IT RECEIVED AN OFFER TO ENTER INTO DISCUSSIONS WITH AN UNIDENTIFIED POTENTIAL BUYER DISCUSSIONS ARE IN A VERY PRELIMINARY STAGE AND NO DECISION CONCERNING AN APPROPRIATE COURSE OF ACTION HAS BEEN REACHED THE CLEVELAND COMPANY SAID THE ANNOUNCEMENT WAS MADE AFTER THE STOCK MARKET HAD CLOSED FOR THE DAY MR COFFEE FINISHED AT 1175 UP 25 CENTS IN NASDAQ STOCK MARKET TRADING GARY C CHIN AN OPPENHEIMER & CO ANALYST SAID MR COFFEE WOULD MAKE AN ATTRACTIVE ACQUISITION FOR A LARGE CONSUMER HOUSEWARES COMPANY SELLING THROUGH THE MASS RETAIL MARKET MR COFFEE HAS ABOUT 34 OF THE US AUTOMATIC DRIP COFFEE MAKER MARKET THE LEADING POSITION MR CHIN SAID HE CONSERVATIVELY FIGURES MR COFFEE COULD FETCH ABOUT 18 A SHARE LAST SPRING MR COFFEE WAS THE SUBJECT OF TAKEOVER RUMORS ALTHOUGH NOTHING CAME OF THEM AT THE TIME IN THE 39 WEEKS ENDED SEPT 26 MR COFFEE HAD NET INCOME OF 17 MILLION OR 20 CENTS A SHARE WHICH INCLUDED A CHARGE OF 12 MILLION FOR THE EARLY EXTINGUISHMENT OF DEBT SALES IN THE PERIOD TOTALED 113 MILLION FOR THE FISCAL YEAR ENDED DEC 27 1992 MR COFFEE EARNED 37 MILLION OR 45 CENTS A SHARE ON 169 MILLION IN SALES 9401210053 940121 BUSINESS BRIEF ALCATELALSTHOM SA CHINESE VENTURES PLANNED IN TELECOMMUNICATIONS FIELD FRENCH TELECOMMUNICATIONS AND ENGINEERING COMPANY ALCATELALSTHOM SA SAID IT SIGNED AGREEMENTS WITH THE POST TELEGRAPH & TELEPHONE AGENCY OF CHINA TO CREATE TWO JOINTVENTURE COMPANIES IN TELECOMMUNICATIONS IN BEIJING AND CHENGDU THE FIRST VENTURE ALCATEL OF BEIJING TRANSMISSION SYSTEMS WILL MAKE AND SELL MICROWAVE EQUIPMENT FOR CHINA'S MARKET THE SECOND VENTURE ALCATEL OF CHENGDU COMMUNICATION SYSTEMS WILL MAKE AND SELL LINETRANSMISSION EQUIPMENT THE TWO WILL BE JOINTLY OWNED BY ALCATEL THROUGH ITS ALCATEL CHINA UNIT AND BY THE CHINESE GOVERNMENT ALCATEL ITALIA WILL ENSURE THE TECHNOLOGY TRANSFER ALCATEL HAS A 50 MARKET SHARE IN DIGITALSWITCHING EQUIPMENT IN CHINA 9401210052 940121 BUSINESS BRIEFS NIPSCO INDUSTRIES INC MERRILLVILLE IND RESTRUCTURED ITS NORTHERN INDIANA PUBLIC SERVICE CO SUBSIDIARY BY SEPARATING ITS GAS AND ELECTRIC BUSINESSES EACH OPERATION WILL NOW BE RESPONSIBLE FOR HANDLING THE REGULATED AND NONREGULATED SIDES OF ITS BUSINESS UNISYS CORP BLUE BELL PA RECEIVED A 15 MILLION CONTRACT FROM SPANISH INSURER ABEILLE PREVISORA FOR NETWORK INTEGRATION CONSULTING SERVICES AND SOFTWARE AND HARDWARE THE DEAL INCLUDES INSTALLATION OF UNISYS'S INFOIMAGE FOLDER SOFTWARE US CAN CORP OAK BROOK ILL COMPLETED ITS ACQUISITION OF STEELTIN CAN CORP BALTIMORE AND TWO AFFILIATED COMPANIES EASTERN CONTAINER CO AND EASTERN METAL DECORATING INC FOR ABOUT 20 MILLION VIGORO CORP CHICAGO WILL ACQUIRE MIDOHIO CHEMICAL CO IN A STOCK DEAL VALUED AT 48 MILLION UNDER THE AGREEMENT VIGORO WOULD EFFECT A TAXFREE EXCHANGE OF 19 MILLION IN COMMON STOCK AND 29 MILLION IN PREFERRED STOCK FOR MIDOHIO'S ASSETS INCLUDING WORKING CAPITAL 9401210051 940121 BUSINESS BRIEF UNION CAMP CORP NET MORE THAN DOUBLED DURING THE FOURTH QUARTER UNION CAMP CORP SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED TO 176 MILLION OR 25 CENTS A SHARE FROM 73 MILLION OR 11 CENTS A SHARE A YEAR EARLIER MAINLY BECAUSE OF ONETIME ITEMS REVENUE FOR THE QUARTER AT THIS PAPER PACKAGING AND BUILDING PRODUCTS COMPANY IN WAYNE NJ ROSE 7 TO 7938 MILLION FROM 7443 MILLION A YEAR EARLIER PRETAX INCOME FROM OPERATIONS ROSE 14 TO 549 MILLION EARNINGS IN OUR PAPER AND PAPERBOARD BUSINESS CONTINUED TO BE NEGATIVELY AFFECTED BY WEAK PRICING SAID GENE CATLEDGE CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON THE OTHER HAND OUR OVERALL SHIPMENTS WERE UP 8 AS THE IMPROVING ECONOMY CONTINUED TO INCREASE DEMAND IN PARTICULAR FOR LINERBOARD AND PACKAGING THE LATEST QUARTER INCLUDED A 42 MILLION GAIN OR SIX CENTS A SHARE FROM SALE OF LAND THE YEAREARLIER QUARTER INCLUDED A 56 MILLION CHARGE OR EIGHT CENTS A SHARE FROM EARLY RETIREMENT OF DEBT 9401210050 940121 BUSINESS BRIEF CYRIX CORP PROFIT FELL 71 IN QUARTER MANUFACTURING WOES CITED CYRIX CORP CITED A MANUFACTURING DIFFICULTY FOR A 71 PLUNGE IN FOURTHQUARTER EARNINGS INDICATING THAT ITS STRATEGY OF CLONING CHIPS MADE BY INTEL CORP MAY BE MUCH HARDER THAN EXPECTED THE RICHARDSON TEXAS CHIP MAKER'S NET INCOME FELL TO 12 MILLION OR SIX CENTS A SHARE FROM 4 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SALES ROSE 22 TO 328 MILLION FROM 27 MILLION THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS IN NASDAQ STOCK MARKET TRADING THE CYRIX STOCK CLOSED AT 1975 DOWN 25 CENTS IN RECENT YEARS CYRIX HAS BEEN TOUTED AS A SERIOUS COMPETITOR TO INTEL AS PART OF ITS PLAN TO GROW QUICKLY CYRIX OPTED NOT TO BUILD ITS OWN MANUFACTURING FACILITIES BUT INSTEAD USE OUTSIDE CONTRACTORS PROBLEMS AROSE WHEN ITS PRIMARY CONTRACTOR BEGAN USING A MORE COMPLEX TECHNOLOGY SAID A COMPANY SPOKESWOMAN AT LEAST FOR THE SHORT TERM WE HAVE SOLVED THAT PROBLEM IN DECEMBER WE MANAGED TO SHIP QUITE A FEW UNITS FROM THIS NEW TECHNOLOGY SHE SAID 9401210049 940121 WHO'S NEWS CHICAGO STOCK EXCHANGE CHICAGO STOCK EXCHANGE CHICAGO JAMES A GARY WAS NAMED EXECUTIVE VICE PRESIDENT OF THE EXCHANGE FORMERLY KNOWN AS THE MIDWEST STOCK EXCHANGE MR GARY 52 YEARS OLD HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF FUTURES BROKERAGE FIRM SAUL STONE & CO HE SUCCEEDS ROGER HENDRICK WHO WILL CONTINUE WITH THE EXCHANGE AS VICE PRESIDENT 9401210048 940121 BUSINESS BRIEF SILICON GRAPHICS INC FISCAL 2NDQUARTER PROFIT SURGED 65 REVENUE 37 SILICON GRAPHICS INC BENEFITING FROM SALES OF ITS NEW INDY GRAPHICS WORKSTATIONS SAID FISCAL SECONDQUARTER NET INCOME SURGED 65 ON A 37 INCREASE IN REVENUE NET IN THE PERIOD ENDED DEC 31 ROSE TO 363 MILLION OR 24 CENTS A SHARE FROM 22 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 3704 MILLION FROM 2702 MILLION A YEAR EARLIER THE RESULTS BEAT ANALYSTS' EXPECTATIONS OF ABOUT 20 CENTS A SHARE THE MOUNTAIN VIEW CALIF WORKSTATION MAKER ALSO BEAT ITS OWN GOALS WITH 136 OPERATING MARGINS FOR THE QUARTER UP FROM 109 A YEAR EARLIER IT HAD HOPED THE MARGINS WOULD BE 11 TO 13 SALOMON BROTHERS ANALYST JEFF CANIN SAID THE IMPROVEMENT WAS DRIVEN BY HIGHER SALES AS THE COMPANY KEPT COSTS FLAT THE SECOND QUARTER WAS NOTHING SHORT OF OUTSTANDING HE SAID SILICON'S STOCK ROSE 75 CENTS OR 34 TO CLOSE AT 23125 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9401210047 940121 WHO'S NEWS MEDIA VISION TECHNOLOGY INC MEDIA VISION TECHNOLOGY INC FREMONT CALIF BERNARD V VONDERSCHMITT AND CURTIS S WOZNIAK HAVE BEEN ELECTED DIRECTORS OF THIS MAKER OF MULTIMEDIA COMPUTER PRODUCTS MR VONDERSCHMITT 70 YEARS OLD IS PRESIDENT AND COFOUNDER OF XILINX INC MR WOZNIAK 38 IS VICE PRESIDENT OF MARKETING FOR SUN MICROSYSTEMS COMPUTER CORP A UNIT OF SUN MICROSYSTEMS INC THE APPOINTMENTS EXPAND BOARD MEMBERSHIP TO SIX FILLING ONE VACANT SEAT AND ADDING A NEW ONE 9401210046 940121 BUSINESS BRIEF CONNER PERIPHERALS INC FOURTHPERIOD PROFIT ENDS STRING OF QUARTERLY LOSSES CONNER PERIPHERALS INC AFTER THREE CONSECUTIVE QUARTERLY LOSSES AMID A COMPUTER DISKDRIVE PRICE WAR EARNED A MODEST 85 MILLION IN THE FOURTH QUARTER THE RESULTS EQUAL TO 17 CENTS A SHARE WERE IDENTICAL TO THOSE REPORTED A YEAR EARLIER SALES SLUMPED 74 TO 5744 MILLION FROM 6205 MILLION FOR 1993 THE SAN JOSE CALIF DISKDRIVE MAKER HAD A LOSS OF 4453 MILLION OR 903 A SHARE COMPARED WITH NET INCOME OF 1211 MILLION OR 219 A SHARE IN 1992 THE 1993 LOSS REFLECTS RESTRUCTURING CHARGES AND WRITEDOWNS AMONG OTHER ITEMS OF 3384 MILLION MUCH OF IT TAKEN IN THE THIRD QUARTER THE CONSENSUS OF ANALYSTS WAS FOR CONNER TO POST A LOSS OF 38 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC BUT TODD BAKAR AN ANALYST WITH HAMBRECHT & QUIST SAID THERE HAS BEEN A LOT OF WHISPERING IN THE LAST FEW DAYS THAT THEY WERE GOING TO MAKE MONEY 9401210045 940121 WHAT'S NEWS BUSINESS AND FINANCE TIME WARNER REINSTITUTED A POISONPILL PROVISION IN A DEFENSIVE MOVE AIMED AT KEEPING ITS BIG NEW INVESTOR SEAGRAM AT BAY THE PLAN WHICH EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO 15 COMES JUST ONE DAY AFTER SEAGRAM BECAME TIME WARNER'S LARGEST SHAREHOLDER BOOSTING ITS STAKE TO 117 FROM 104 HOUSING STARTS GREW 62 IN DECEMBER PUSHING HOMEBUILDING FOR 1993 TO ITS HIGHEST LEVEL IN FOUR YEARS SEPARATELY INITIAL JOBLESS CLAIMS INCREASED 23000 LAST WEEK TO 380000 THE DOW JONES INDUSTRIALS ROSE 759 TO 389196 THE YEAR'S EIGHTH RECORD AMID THE MIXED ECONOMIC NEWS TELECOMMUNICATIONS SAID ITS PURCHASE OF A MILLION TV SETTOP CONVERTERS FOR INTERACTIVE CABLE SERVICES WILL BE DELAYED BY NEARLY A YEAR BECAUSE INDUSTRY STANDARDS AREN'T SET APPLE'S PROFIT PLUNGED 75 FOR ITS FIRST QUARTER ALTHOUGH MACINTOSH SHIPMENTS SOARED TO A RECORD THE COMPUTER COMPANY CONTINUES TO FEEL THE SQUEEZE OF SHRINKING PROFIT MARGINS QVC'S DILLER IS WEIGHING AT LEAST TWO WAYS OF RESTRUCTURING THE COMPANY'S 102 BILLION BID FOR PARAMOUNT WITHOUT NECESSARILY BOOSTING THE TOTAL PRICE PEOPLE CLOSE TO QVC SAY TWO BIG DRUG COMPANIES POSTED FOURTHQUARTER EARNINGS THAT LARGELY MET EXPECTATIONS REASSURING INVESTORS THAT PFIZER'S WEAK RESULTS DIDN'T SIGNAL A DRUG INDUSTRY TREND BRISTOLMYERS'S PROFIT FELL BECAUSE OF A SPECIAL CHARGE AND AMERICAN HOME'S ROSE JAPAN'S YEAREND TRADE STATISTICS ARE EXPECTED TO SHOW THAT US EXPORTS TO JAPAN HAVE PICKED UP BUT THE BILATERAL TRADE IMBALANCE HASN'T BUDGED ILLUSTRATING ONLY LIMITED SUCCESS FOR PRESIDENT CLINTON'S STRONGYEN POLICY MICROSOFT PLANS TO OFFER SOFTWARE THAT GIVES WINDOWS A NEW LOOK AND FEEL AIMED AT HOME COMPUTER USERS GUINNESS AND LVMH RESTRUCTURED THEIR CROSSOWNERSHIP PERMITTING GUINNESS TO FOCUS ITS INVESTMENT ON BUSINESSES THEY HAVE IN COMMON PRUDENTIAL SECURITIES DIDN'T INFLATE PAYOUTS ON ITS LIMITED PARTNERSHIPS BY BORROWING FUNDS TO DISTRIBUTE TO INVESTORS A WITNESS FOR THE FIRM TESTIFIED SHORT INTEREST GREW 28 ON THE NEW YORK STOCK EXCHANGE TO A RECORD 128 BILLION SHARES IN MIDJANUARY GE REPORTED A 10 GAIN IN FOURTHQUARTER PROFIT REVENUE GREW 12 UP FROM THE 3 TO 4 QUARTERLY INCREASES GE POSTED IN THE PRIOR THREE PERIODS BANKERS TRUST REPORTED SHARPLY HIGHER FOURTHQUARTER EARNINGS TWO OTHER BANKS BANK OF BOSTON AND KEYCORP ALSO TURNED IN IMPROVED RESULTS WHILE SOCIETY'S EARNINGS DECLINED NEW YORK LIFE INSURANCE SOLD THE BULK OF ITS CANADIAN INSURANCE BUSINESS TO CANADA LIFE ASSURANCE CIRCUS CIRCUS'S MANAGEMENT UPHEAVAL CONTINUED WITH THE RESIGNATION OF WILLIAM PAULOS THE CASINO EXECUTIVE WHO OVERSAW THE OPENING OF THE FIRM'S 390 MILLION LUXOR RESORT TORONTO MAY LOSE A PROMISED NBA TEAM BECAUSE THE PROVINCIAL GOVERNMENT REFUSES TO DROP BASKETBALL FROM ITS SPORTSBETTING LOTTERY AS REQUIRED UNDER TERMS OF THE NOVEMBER AWARD BONDS LEHMAN BROTHERS TREASURY INDEX 561062 UP 2347 COMMODITIES OIL 1510 A BARREL OFF 12 CENTS DOW JONES FUTURES INDEX 14278 UP 070 SPOT INDEX 12986 UP 026 DOLLAR 11140 YEN UP 005 17380 MARKS OFF 00080 9401210044 940121 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY AMERICA'S AGENDA FOR 1994 IS CRIME WELFARE AND HEALTH CARE WITH ECONOMIC CONCERNS RECEDING A NEW WALL STREET JOURNAL/NBC NEWS POLL FINDS CRIME AND DRUGS ARE NOW THE NO 1 ISSUE ON AMERICANS' MINDS NINETYTHREE PERCENT SAY DEALING WITH CRIME SHOULD BE AN ABSOLUTE PRIORITY FOR CLINTON AND CONGRESS THIS YEAR 83 CITE WELFARE REFORM AND 67 HEALTH CARE THE ISSUE AGENDA IS QUITE DIFFERENT THAN A YEAR AGO SAY DEMOCRAT PETER HART AND REPUBLICAN ROBERT TEETER WHO CONDUCTED THE JOURNAL/NBC POLL A YEAR AGO IT WAS THE ECONOMY AND THE ECONOMY CLINTON PLANS TO HIT HARDER ON CRIME IN HIS STATE OF THE UNION ADDRESS HE WILL PLUG THE LONGLANGUISHING CRIME BILL AND ALSO MAY DEVOTE MORE PASSION TO A NEW CALL FOR A HIGHER MORAL ORDER IN AMERICAN SOCIETY THE ADMINISTRATION BEGINS MAPPING PLANS TO PULL TOP OFFICIALS INCLUDING RENO BENTSEN EDUCATION'S RILEY AND HUD'S CISNEROS INTO MORE HIGHPROFILE ROLES IN CRIME FIGHTING GETTOUGH POLICIES ARE FAVORED OVER OTHER CRIME NOSTRUMS FIFTYSEVEN PERCENT SAY CRIME IS EITHER A CRITICAL OR MAJOR PROBLEM IN THEIR OWN COMMUNITIES WHEN ASKED WHETHER MORE EMPHASIS SHOULD BE PLACED ON THE CAUSES OF CRIME OR ON STRICTER PUNISHMENT AMERICANS ARE CLOSELY DIVIDED BUT WHEN THE TALK TURNS TO SPECIFICS PUNISHMENT IS ON THEIR MINDS IN THE POLL 76 SAY MANDATORY LIFESENTENCES FOR ALL THREETIME VIOLENT OFFENDERS WOULD HAVE A MAJOR IMPACT ON THE PROBLEM STRONG MAJORITIES SAY MAKING MORE CRIMES SUBJECT TO THE DEATH PENALTY AND TOUGHENING PUNISHMENT FOR JUVENILE OFFENDERS WOULD MAKE A BIG DIFFERENCE 52 SAY PUTTING 100000 MORE COPS ON THE STREET WOULD BE A BIG HELP BUT ONLY 39 SAY BUILDING MORE PRISONS WOULD BE OF MUCH HELP AND FEWER THAN ONE IN FIVE SAY HIGHER FEES ON GUN DEALERS OR RAISING AMMUNITION TAXES WOULD MATTER MUCH ECONOMIC OPTIMISM SURGES AND CLINTON SEEKS CREDIT FOR IT AT 44 THE NUMBER OF AMERICANS SAYING THE ECONOMY WILL IMPROVE OVER THE NEXT 12 MONTHS IS THE HIGHEST IT HAS BEEN SINCE LAST JANUARY CONCERN OVER JOBLESSNESS DROPS TO ITS LOWEST LEVEL SINCE CLINTON TOOK OFFICE ASKED WHO DESERVES MOST CREDIT FOR THE ECONOMY'S UPSWING 49 SAY THE NORMAL BUSINESS CYCLE 23 SAY CLINTON AND 11 SAY BUSH ONLY 4 CREDIT THE FED THE WHITE HOUSE HAS BEEN LABORING TO CONVINCE REPORTERS THAT CLINTON DESERVES CREDIT ARGUING THAT HIS DEFICITREDUCTION INITIATIVE BROUGHT DOWN LONGTERM INTEREST RATES SOME ECONOMISTS SAY THE GOVERNMENT'S ESTIMATE OF FOURTHQUARTER GROWTH WHICH COMES OUT NEXT FRIDAY COULD BE AS HIGH AS 6 THE ROBUST ECONOMY OF THE FOURTHQUARTER SHOULD CONTINUE INTO THE FIRST SAYS LEHMAN BROTHERS' ALLEN SINAI THE URGE TO MERGE AMONG CABLETV AND TELEPHONE COMPANIES IS VIEWED WITH SUSPICION IN THE POLL 55 BELIEVE SUCH MERGERS WILL HURT CONSUMERS BY CONCENTRATING TOO MUCH POWER IN THE HANDS OF A FEW COMPANIES COMPARED WITH 38 WHO BELIEVE SUCH MERGERS WILL HELP CONSUMERS BY MAKING MORE OPTIONS AVAILABLE HILLARY'S INVOLVEMENT IN WHITEWATER SEEMS TO HAVE DONE HER LITTLE DAMAGE WITH THE PUBLIC FIFTYONE PERCENT HAVE POSITIVE VIEWS OF HER LARGELY UNCHANGED FROM DECEMBER THE FINDING SUGGESTS DEMOCRATIC FEARS THAT HER ABILITY TO SELL HEALTHCARE REFORM WOULD BE HURT ARE OVERBLOWN HAVES AND HAVENOTS INCREASINGLY SPLIT OVER CLINTON'S HEALTH PLAN OPPOSITION AMONG THOSE WHO CURRENTLY ARE COVERED BY HEALTH INSURANCE RISES TO 42 FROM 33 CONVERSELY SUPPORT AMONG THOSE WHO AREN'T COVERED BY INSURANCE RISES TO 60 OVERALL AMERICANS FAVOR THE PLAN BY 42 TO 39 DOWN FROM 47 TO 32 A MONTH AGO DOLE PATROL HOURS BEFORE INMAN'S PUBLIC WITHDRAWAL ANNOUNCEMENT A WHITE HOUSE OFFICIAL PHONED TO GIVE THE SENATE GOP LEADER ADVANCE WORD WITHOUT MENTIONING THAT INMAN WAS ATTACKING DOLE AS A PRINCIPAL REASON FOR HIS DECISION IN THE POLL WHICH WAS CONDUCTED BEFORE INMAN'S ALLEGATIONS DOLE WAS VIEWED POSITIVELY BY 42 NEGATIVELY BY 23 MORE AID TO RUSSIA COULD COME FROM INTERNATIONAL INSTITUTIONS HOPING THAT REFORMS REMAIN ON TRACK THE ADMINISTRATION TALKS WITH THE IMF AND WORLD BANK ABOUT FINANCING A SOCIAL SAFETY NET FOR RUSSIANS TO CUSHION THE BLOW OF FACTORY CLOSINGS AND LAYOFFS BUT WITH THE EXODUS OF RUSSIAN REFORMERS US OFFICIALS WATCH TO SEE WHAT YELTSIN AND PRIME MINISTER CHERNOMYRDIN DO NOT WHAT THEY SAY BENTSEN'S NEW SLOGAN WE WANT TO MAKE SURE THAT SUPPORT ADVANCES AS FAST AS THE REFORMS WITH THE ISSUE OF NORTH KOREA'S NUCLEAR PROGRAM RECEDING FROM THE HEADLINES RUSSIA REEMERGES AS AMERICANS' TOP FOREIGNPOLICY PRIORITY IN THE POLL CURRENTLY 28 OF AMERICANS CONSIDER RUSSIA AN ALLY 10 CONSIDER IT AN ADVERSARY AND 56 CONSIDER IT NEITHER MINOR MEMOS BRING BACK GRIDLOCK BY 56 TO 33 AMERICANS WOULD RATHER HAVE CONGRESS AND THE PRESIDENCY CONTROLLED BY DIFFERENT PARTIES MOST PEOPLE MAY NOT KNOW EXACTLY WHAT THE TERM MULTIMEDIA MEANS BUT BY 54 TO 21 THEIR INITIAL REACTION TO THE IDEA IS POSITIVE 9401210043 940121 SMALL STOCK FOCUS TRADERS SHOW CONFIDENCE IN CYCLICALS EXTENDING RUSSELL 2000'S RECORD RUN BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRONG EARNINGS REPORTS AND CONTINUED INVESTOR CONFIDENCE IN CYCLICALS PUSHED ISSUES HIGHER WITH A KEY INDEX SETTING ITS SEVENTH STRAIGHT RECORD TRADERS AND ANALYSTS SAY FOURTHQUARTER EARNINGS HAVE TAKEN OVER AS THE DRIVING FORCE IN THE SMALLCAPITALIZATION MARKETS WITH MANY OF YESTERDAY'S SHARPEST GAINS AND LOSSES COMING ON THE HEELS OF COMPANIES' QUARTERLY RESULTS THE RUSSELL 2000 INDEX ENDED THE DAY AT A SEVENTH STRAIGHT HIGH UP 077 OR 03 AT 26337 THE INDEX TRACKS SMALLCAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES THE NASDAQ COMPOSITE INDEX WAS UP 374 OR 047 TYING TUESDAY'S RECORD MARK OF 79302 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AT 26323 WAS UP 028 OR 011 AND THE DOW JONES INDUSTRIAL AVERAGE GAINED 759 OR 02 TO CLOSE AT A RECORD 389196 NASDAQ ADVANCERS OUTPACED DECLINERS 1517 TO 1456 ON VOLUME OF 340 MILLION SHARES COMPARED WITH WEDNESDAY'S 338 MILLION SHARES NASDAQ NATIONAL MARKET VOLUME WAS 279 MILLION SHARES DOWN SLIGHTLY FROM THE PREVIOUS SESSION'S 282 MILLION SHARES MANY SMALLCOMPANY STOCKS HAD SIGNIFICANT PRICE SWINGS FOLLOWING THE RELEASE OF THEIR QUARTERLY EARNINGS REPORTS BREED TECHNOLOGIES NYSE A LAKELAND FLA MAKER OF CRASH SENSORS FOR CAR AIRBAG SYSTEMS ROSE 3 1/4 OR 19 TO 20 3/8 AFTER REPORTING FISCAL SECONDQUARTER EARNINGS OF 34 CENTS A SHARE UP FROM YEAREARLIER PERSHARE EARNINGS OF 13 CENTS AND ABOVE ANALYSTS' AVERAGE ESTIMATE OF 24 CENTS GOOD GUYS A CHAIN OF CONSUMERELECTRONICS STORES BASED IN BRISBANE CALIF ROSE 1 3/4 OR 14 TO 14 AFTER REPORTING FISCAL FIRSTQUARTER EARNINGS OF 57 CENTS A SHARE ON INCREASED SHARES OUTSTANDING UP FROM A YEAREARLIER 42 CENTS A SHARE PHOENIX TECHNOLOGIES A NORWOOD MASS SOFTWARE COMPANY REPORTED FISCAL FIRSTQUARTER EARNINGS OF NINE CENTS A SHARE UP FROM THE YEAREARLIER PERIOD'S EIGHT CENTS A SHARE PHOENIX CLIMBED 9/16 OR 13 TO 4 7/8 BELL SPORTS WAS UP 2 3/4 OR 95 TO 31 3/4 THE RANTOUL ILL BICYCLEHELMET MAKER REPORTED FISCAL SECONDQUARTER EARNINGS OF 25 CENTS A SHARE UP FROM YEAREARLIER PERSHARE OPERATING EARNINGS OF 15 CENTS SOFTIMAGE FELL 4 7/8 OR 26 TO 13 3/4 AFTER THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF FOUR CENTS A SHARE ON INCREASED SHARES OUTSTANDING COMPARED WITH A YEAREARLIER 18 CENTS A SHARE THE MONTREAL INTERACTIVESOFTWARE DEVELOPER NAMED MICHEL Y LECAVALIER ITS CHIEF FINANCIAL OFFICER A NEW POSITION ALTERA FELL 5 5/8 OR 16 TO 30 DESPITE REPORTING FOURTHQUARTER EARNINGS OF 34 CENTS A SHAREUP FROM A YEAREARLIER 10 CENTS A SHARE AND AHEAD OF ANALYSTS' EXPECTATIONS FOR 32 CENTS A SHARE THE SAN JOSE CALIF MAKER OF PROGRAMMABLE LOGIC INTEGRATED CIRCUITS MADE A STATEMENT THAT IT IS CAUTIOUS IN ITS OUTLOOK FOR THE NEXT QUARTER SAYING SALES GROWTH IS ANTICIPATED TO BE MUCH MORE MODEST THAN OUR RECENT PERFORMANCE APPLIED EXTRUSION TECHNOLOGIES A SALEM MASS PLASTICS COMPANY ROSE 1 7/8 OR 52 TO 5 3/4 ON NEWS THAT IT SIGNED A LETTER OF INTENT TO PURCHASE BIG BOARDLISTED HERCULES' PACKAGING FILMS GROUP CLEAN HARBORS A QUINCY MASS ENVIRONMENTALSERVICES COMPANY ROSE 1 1/2 OR 21 TO 8 1/2 AFTER KIDDER PEABODY UPGRADED THE STOCK TO STRONG BUY FROM NEUTRAL WITH A 12 TO 14 12MONTH PRICE TARGET AST RESEARCH ROSE 4 3/8 OR 18 TO 29 1/8 AFTER THE RATING ON THE IRVINE CALIF PERSONALCOMPUTER MAKER WAS RAISED TO BUY FROM NEUTRAL BY ALEX BROWN & SONS AND MABON SECURITIES MABON ALSO RAISED ITS PERSHARE EARNINGS ESTIMATE FOR THE FISCAL YEAR ENDING IN JUNE TO 185 FROM 170 AND RAISED ITS FISCAL1995 ESTIMATE TO 285 FROM 2 IN FISCAL 1993 AST HAD A PERSHARE LOSS OF 172 AFTER CHARGES ANALYSTS SAY THE MARKET'S SOCALLED JANUARY EFFECT IN WHICH SMALL CAPS SEE A SPATE OF TAXRELATED SELLING LATE IN THE YEAR FOLLOWED BY A JANUARY REBOUND HAS RUN ITS COURSE EARNINGS WILL NOW TAKE OVER AND BE THE DRIVING FORCE SAID GREG KUHN OF KUHN ASSET MANAGEMENT EUGENE PERONI DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT SAID EARNINGS REPORTS ARE INDEED CAUSING MANY STOCKS TO MOVE SHARPLY BUT HE POINTED OUT THAT INDIVIDUAL ISSUES AREN'T HAVING AN EFFECT ON OTHER STOCKS IN THEIR RESPECTIVE INDUSTRY GROUPS OVERALL HE SAID IT'S A CYCLICALLY DRIVEN MARKET WITH ECONOMICALLY SENSITIVE STOCKS IN THE LEAD IT'S A MOMENTUMAND LIQUIDITYDRIVEN MARKET THAT HASN'T REACHED ITS PEAK YET HE SAID MR PERONI IS ENCOURAGED BY THE MARKET'S LATEDAY STRENGTH WHICH HE SAID UNDERSCORES INVESTORS' CONFIDENCE AND WILLINGNESS TO HOLD THEIR POSITIONS MR KUHN ADDED THAT THERE'S ANOTHER FACTOR IN SUSTAINING THE RALLY THE SHORTTERM INTEREST RATE UNTIL THE THREEMONTH TREASURY BILL YIELDS 33 COMPARED WITH ITS CURRENT 299 HE SAID SMALLCOMPANY STOCKS WILL CONTINUE TO MOVE HIGHER AS A DEFAULT INVESTMENT WE WILL STILL SEE HIGHER HIGHS IN THE SMALLCAP MARKET HE SAID 9401210042 940121 WHO'S NEWS STONE & WEBSTER INC STONE & WEBSTER INC NEW YORK DONNA R FITZPATRICK 45 YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENGINEERING AND CONSTRUCTION COMPANY INCREASING THE BOARD'S SIZE TO 13 MS FITZPATRICK IS VICE PRESIDENT OF CAULDRON CO A MICRO CONTAMINATION TECHNOLOGY CONCERN AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS RADIANCE SERVICES CO UNIT 9401210041 940121 INTERNATIONAL BRIEF GENERAL MOTORS CORP OPEL SUBSIDIARY SAYS LOSS IN 1993 WAS UNAVOIDABLE ADAM OPEL AG THE GERMAN UNIT OF GENERAL MOTORS CORP OF THE US SAID IT WAS IMPOSSIBLE TO AVOID A CLEAR LOSS IN 1993 THE FRANKFURT COMPANY WASN'T MORE SPECIFIC BUT SAID IT WAS CONFIDENT IT WOULD RETURN TO PROFITABILITY IN 1994 IN 1992 OPEL REPORTED A PROFIT OF 202 MILLION MARKS 1157 MILLION OPEL SAID SALES FELL 24 TO MORE THAN 22 BILLION MARKS FROM 292 BILLION MARKS A YEAR EARLIER IT DIDN'T PROVIDE A MORE PRECISE FIGURE FOR 1993 WHILE GMEUROPE REMAINED PROFITABLE IN 1993 OPEL SAID SEVERAL FACTORS PUSHED THE UNIT INTO THE RED THESE WERE 160 MILLION MARKS TO FUND SHORTENED SHIFTS AND 350 MILLION MARKS FOR EARLY RETIREMENT AND SEVERANCE PAY AS WELL AS 380 MILLION MARKS IN LOSSES FROM EXCHANGERATE FLUCTUATIONS OPEL REPORTED OUTPUT SLID 24 TO 1074 MILLION UNITS IN 1993 FROM 1411 MILLION UNITS A YEAR EARLIER 9401210040 940121 BUSINESS BRIEF ICF KAISER INTERNATIONAL INC UNIT GETS 411 MILLION SHARE OF 3 CONTRACTS AT LIVERMORE ICF KAISER INTERNATIONAL INC FAIRFAX VA SAID ITS SUBSIDIARY WAS AWARDED A 411 MILLION SHARE OF THREE SUPPLEMENTAL LABOR CONTRACTS AT LAWRENCE LIVERMORE NATIONAL LABORATORY IN NORTHERN CALIFORNIA THE UNIT KAISER ENGINEERS LIVERMORE WILL PROVIDE SCIENTIFIC ADMINISTRATIVE AND MECHANICAL ENGINEERING EXPERTISE IN A JOINT VENTURE WITH TAD TECHNICAL SERVICE CORP CAMBRIDGE MASS THE CONTRACTS TOTALING 548 MILLION WILL LAST A YEAR WITH ADDITIONAL ONEYEAR OPTIONS ICF KAISER INTERNATIONAL FORMERLY ICF INTERNATIONAL INC IS AN ENGINEERING CONSTRUCTION AND CONSULTING SERVICES CONCERN 9401210039 940121 WHO'S NEWS METROPOLITAN LIFE INSURANCE CO METROPOLITAN LIFE INSURANCE CO NEW YORK HOWARD A YORK 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF METLIFE INVESTMENT MANAGEMENT CORP A UNIT OF THIS INSURANCE AND FINANCIAL SERVICES COMPANY MR YORK SUCCEEDS GERALD CLARK 50 WHO REMAINS CHAIRMAN OF THE UNIT AND CONTINUES AS EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF THE PARENT MR YORK WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF AMERICAN GENERAL CORP AN INSURANCE COMPANY BASED IN HOUSTON 9401210038 940121 BUSINESS BRIEF FIRST DATA CORP FOURTHQUARTER PROFIT ROSE 22 ON 19 REVENUE GAIN FIRST DATA CORP SAID FOURTHQUARTER PROFIT JUMPED 22 BECAUSE OF CONTINUED GROWTH IN BASE BUSINESSES THE HACKENSACK NJ INFORMATION PROCESSING COMPANY SAID NET INCOME FOR THE QUARTER ROSE TO 529 MILLION OR 48 CENTS A SHARE FROM 434 MILLION OR 39 CENTS A SHARE A YEAR EARLIER THE 1993 QUARTER INCLUDED A 124 MILLION GAIN FROM SALE OF ITS WATS MARKETING OF AMERICA INC UNIT AND A NONRECURRING CHARGE OF 138 MILLION FOR CONSOLIDATION OF DATAPROCESSING OPERATIONS REVENUE FOR THE QUARTER ROSE NEARLY 19 TO 3834 MILLION THE COMPANY SAID THAT IT EXPECTS REVENUE AND EARNINGS TO GROW 20 THIS YEAR NET INCOME FOR 1993 ROSE 22 TO 173 MILLION OR 156 A SHARE FROM 1414 MILLION OR 130 A SHARE IN 1992 REVENUE GREW 24 TO 149 BILLION 9401210037 940121 WHO'S NEWS BEARINGS INC BEARINGS INC CLEVELAND JERRY SUE OWENS 47 YEARS OLD PRESIDENT OF CUYAHOGA COMMUNITY COLLEGE CLEVELAND WAS NAMED A DIRECTOR OF THIS DISTRIBUTOR OF BEARINGS MECHANICAL AND ELECTRICAL DRIVE SYSTEMS AND RELATED PRODUCTS SHE FILLS A VACANCY ON THE BOARD CREATED BY THE DEATH OF JOHN R CUNIN IN JULY 1993 THE BOARD'S SIZE REMAINS AT 10 MEMBERS 9401210036 940121 BUSINESS BRIEF STRIDE RITE CORP MAKER OF FOOTWEAR SAYS NET JUMPED FOR FOURTH QUARTER STRIDE RITE CORP REPORTED NET INCOME OF 74 MILLION OR 15 CENTS A SHARE FOR ITS FOURTH QUARTER ENDED DEC 3 A SUBSTANTIAL INCREASE OVER YEARAGO RESULTS WHICH WERE DEPRESSED BY A BIG ONETIME CHARGE IN THE FISCAL FOURTH QUARTER OF 1992 THE CAMBRIDGE MASS FOOTWEAR MANUFACTURER HAD NET OF 2 MILLION OR FOUR CENTS A SHARE AFTER A 111 MILLION CHARGE STEMMING FROM THE RELOCATION OF ITS DISTRIBUTION CENTER FROM KENTUCKY TO MASSACHUSETTS REVENUE CLIMBED 33 TO 1111 MILLION FROM 1075 MILLION A YEAR AGO THE COMPANY SAID SALES OF ITS KEDS LINE WERE DOWN 3 IN 1993 THE RESULT OF A SHIFT IN CONSUMER PREFERENCE TOWARD LOWERPRICED CANVAS SHOES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF STRIDE RITE CLOSED AT 16875 UP 25 CENTS FOR THE FULL YEAR IN 1993 STRIDE RITE HAD NET OF 583 MILLION OR 115 A SHARE DOWN 52 FROM 615 MILLION OR 119 A SHARE IN 1992 FULLYEAR SALES SLIPPED SLIGHTLY TO 5829 MILLION FROM 5859 MILLION IN 1992 9401210035 940121 BUSINESS BRIEF MIDLAND RESOURCES INC COMPANY BUYS ALL THE STOCK OF MIRESCO INC AFFILIATE MIDLAND RESOURCES INC MIDLAND TEXAS SAID IT ACQUIRED ALL OF THE COMMON STOCK OUTSTANDING OF MIRESCO INC A PRIVATELY HELD AFFILIATE UNDER THE TERMS OF THE AGREEMENT MIDLAND WILL ISSUE A STILLTOBEDETERMINED NUMBER OF SHARES TO DEAS H WARLEY III AND SAL J PAGANO MIRESCO'S FORMER SHAREHOLDERS NO PURCHASE PRICE HAS BEEN SET THE EXCHANGE IS TO BE BASED ON THE RELATIVE FAIR VALUES OF MIDLAND AND MIRESCO WHICH THE TWO BOARDS WILL DETERMINE AFTER RECEIVING AN OUTSIDE FAIRNESS OPINION THE ISSUANCE OF MIDLAND SHARES WILL OCCUR BY MARCH 31 MIDLAND EXPLORES DEVELOPS AND PRODUCES NATURAL GAS AND OIL 9401210034 940121 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO UTILITY PLANS TO CONSIDER SALE OF ITS PG&E RESOURCES UNIT PACIFIC GAS & ELECTRIC CO SAID IT PLANS TO EXPLORE THE POSSIBILITY OF SELLING PG&E RESOURCES ITS DALLASBASED OIL AND GAS EXPLORATION AND PRODUCTION COMPANY A SPOKESMAN SAID THE BOARD DETERMINED THAT THE UNIT DOESN'T QUITE FIT WITH THE COMPANY'S LONGTERM STRATEGY ADDING THAT IT CONTRIBUTES ONLY A MINUSCULE AMOUNT TO EARNINGS PG&E RESOURCES IS A SMALL PART OF THE ENERGY CONCERN'S UNREGULATEDBUSINESS SECTOR ITS MAJOR UNREGULATED BUSINESS IS INDEPENDENT POWER PLANTS SAN FRANCISCOBASED PG&E SAID THE COMPANY HAS NO PROSPECTIVE BUYERS BUT THAT IT HAS RETAINED GOLDMAN SACHS & CO AS FINANCIAL ADVISER IN THE EFFORT 9401210033 940121 INTERNATIONAL BRIEF CONTINENTAL AG GERMAN FIRM ABANDONS PLAN TO BUILD NEW HEADQUARTERS GERMAN TIRE MAKER CONTINENTAL AG HAS ABANDONED PLANS TO BUILD A NEW HEADQUARTERS BUILDING IN A MOVE TO CHANNEL MORE FUNDS INTO RESEARCH AND DEVELOPMENT LAND ACQUISITION AND CONSTRUCTION COSTS HAVE RISEN SINCE THE HEADQUARTERS IDEA WAS CONCEIVED IN 1990 THE COMPANY SAID AT THE SAME TIME GERMANY'S RECESSION HAS FORCED THE COMPANY TO RETHINK ITS STRATEGY A SPOKESMAN SAID PLANS CALLED FOR AN INVESTMENT OF 60 MILLION TO 80 MILLION MARKS 34 MILLION TO 46 MILLION SINCE THEN LAND COSTS HAVE RISEN IN THE 30000SQUAREMETER SITE ON THE FASTDEVELOPING OUTSKIRTS OF HANOVER THE PROJECT WOULD NOW COST MORE THAN 100 MILLION MARKS THE COMPANY SAID IN AUGUST 1992 CONTINENTAL SOLD ITS 14FLOOR HEADQUARTERS IN THE CITY CENTER ABOUT 450 OF THE ADMINISTRATIVE STAFF HAVE MOVED INTO ONE OF THE COMPANY'S UNUSED TIRE FACTORIES IN HANOVER THAT BUILDING WILL NOW BE THE NEW HEADQUARTERS 9401210032 940121 BUSINESS BRIEF SYBASE INC NET ROSE 64 IN 4TH QUARTER FUELED BY A 66 SALES GAIN SYBASE INC EMERYVILLE CALIF SAID NET INCOME CLIMBED 64 IN THE FOURTH QUARTER ON A 66 SALES GAIN AMID ROBUST DEMAND FOR ITS NETWORK SOFTWARE AND SERVICES THE COMPANY EARNED 18 MILLION OR 34 CENTS A SHARE COMPARED WITH 11 MILLION OR 21 CENTS A SHARE A YEAR AGO SALES ROSE TO 138 MILLION FROM 83 MILLION THE RESULTS WERE SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS OF 31 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC THE COMPANY SAID REVENUE GROWTH WAS EXPECIALLY STRONG FROM ITS ONLINE SERVICES AND FROM LICENSING OF ITS PRODUCTS FOR 1993 SYBASE EARNINGS ROSE 86 TO 44 MILLION OR 86 CENTS A SHARE FROM 24 MILLION OR 48 CENTS A SHARE SALES ROSE 61 TO 427 MILLION FROM 265 MILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY SYBASE STOCK CLOSED AT 45 UNCHANGED 9401210031 940121 TECHNOLOGY DUPONT MERCK USES COMPUTER TO DEVELOP CLASS OF AIDS DRUGS WILMINGTON DEL SCIENTISTS AT DUPONT MERCK PHARMACEUTICAL CO SAID THEY DEVELOPED A CLASS OF EXPERIMENTAL AIDS DRUGS DESIGNED WITH A NEW TYPE OF COMPUTERAIDED TECHNOLOGY WE THINK IT'S ONE OF THE VERY FIRST EXAMPLES OF NEW MEDICINES DEVELOPED BY THIS NEW DESIGN METHOD SAID DAVID JACKSON A LEADING RESEARCHER AT DUPONT MERCK WHICH IS A JOINT VENTURE BETWEEN DUPONT CO IN WILMINGTON DEL AND MERCK & CO IN WHITEHOUSE STATION NJ DRUG MAKERS HAVE BEEN TALKING ABOUT USING A MORE RATIONAL APPROACH TO DRUGMAKING FOR YEARS AND NOW THE FIRST GENERATION OF THESE DRUGS IS EMERGING THE NEW DRUGS BLOCK AN ENZYME CALLED PROTEASE THAT THE VIRUS THAT CAUSES AIDS NEEDS TO REPRODUCE AND SPREAD FROM CELL TO CELL ABOUT A HALF DOZEN COMPANIES HAVE BEEN RACING AFTER PROTEASEBLOCKING MEDICINES SINCE 1987 BUT UNTIL RECENTLY MOST OF THEM FAILED TO CREATE DRUG MOLECULES SMALL ENOUGH TO REACH CELLS INFECTED BY THE VIRUS IN A REPORT IN THE CURRENT ISSUE OF THE JOURNAL SCIENCE DUPONT MERCK'S SCIENTISTS SAID ANIMAL STUDIES INDICATED THAT THE COMPANY'S DESIGNED DRUG HAD OVERCOME THE SIZE PROBLEM BUT DR JACKSON SAID THE SPECIFIC DRUGS DESCRIBED IN SCIENCE STILL RAN INTO UNEXPECTED PROBLEMS WHEN ADMINISTERED TO HUMANS LAST SUMMER DR JACKSON SAID THE COMPANY HAS SINCE DEVELOPED ANOTHER SET OF CANDIDATES USING THE SAME DESIGN TECHNIQUE THAT THE COMPANY BELIEVES WILL FARE BETTER WHEN TESTED IN HUMANS LATER THIS YEAR AT LEAST TWO OTHER DRUG COMPANIES VERTEX PHARMACEUTICALS INC AND MERCK ALSO HAVE RECENTLY DEVELOPED EXPERIMENTAL PROTEASE BLOCKERS USING SIMILAR DRUG DESIGN TECHNOLOGY MERCK'S DRUG IS BEING TESTED IN HUMANS AND WELLCOME PLC'S BURROUGHS WELLCOME CO UNIT IS EXPECTED TO BEGIN TESTING THE VERTEX DRUG SOON 9401210030 940121 BROOKLYN UNION GAS SETS RECORD NEW YORK BROOKLYN UNION GAS CO SAID IT SENT OUT A RECORD 102 BILLION CUBIC FEET OF NATURAL GAS TO CUSTOMERS WEDNESDAY IN A NEWS RELEASE BROOKLYN UNION GAS SAID IT WAS THE FIRST TIME IT SENT OUT MORE THAN ONE BILLION CUBIC FEET OF NATURAL GAS IN ONE DAY THE COMPANY ATTRIBUTED THE RECORD DEMAND TO COLD WEATHER GRIPPING THE NORTHEAST WEDNESDAY'S FIGURE WAS AN 85 INCREASE FROM THE PREVIOUS RECORD OF 941 MILLION CUBIC FEET SENT OUT JAN 25 1985 BROOKLYN UNION SAID IT HAS MORE THAN ADEQUATE SUPPLIES TO MEET DEMAND FROM ITS 11 MILLION CUSTOMERS 9401210029 940121 REVIEW & OUTLOOK EDITORIAL BENTSEN IN BEIJING TREASURY SECRETARY LLOYD BENTSEN HAS BEEN IN BEIJING IN ADVANCE OF A SHOWDOWN BETWEEN CHINA AND THE US ON THE ISSUE OF HUMAN RIGHTS CONGRESS MUST VOTE EVERY JUNE ON WHETHER TO RENEW CHINA'S MOSTFAVOREDNATION TRADING STATUS UNDER THE TERMS OF THE EXECUTIVE ORDER PRESIDENT CLINTON ISSUED LAST MAY CHINA MUST MAKE SIGNIFICANT PROGRESS ON HUMAN RIGHTS POLITICAL FREEDOM AND THE HUMANE TREATMENT OF PRISONERS IN ORDER FOR THE SECRETARY OF STATE TO RECOMMEND RENEWAL OF MFN THERE CAN BE LITTLE QUESTION THAT CHINA HAS MADE NO SUCH PROGRESS THE FEW POLITICAL PRISONERS IT HAS RELEASED IN THE PAST YEAR HAVE TENDED TO HAVE JUST SHORT PERIODS LEFT TO SERVE AND THEY WERE SET FREE JUST BEFORE IMPORTANT EVENTS LAST WEEK TIBETAN ACTIVISTS GENDUN RINCHEN AND LOBSANG YONTEN WERE RELEASED IN ADVANCE OF MR BENTSEN'S ARRIVAL SUCH CYNICAL GESTURES SERVE AS GRIM REMINDERS OF THE MANY POLITICAL PRISONERS WHO REMAIN IN CHINESE JAILS AND OF THE FACT THAT POLITICAL DISSENT WILL NOT BE TOLERATED IN CHINA INDEED JUST A FEW DAYS BEFORE THE TWO TIBETANS WERE RELEASED CHINA SENTENCED 12 TIBETAN NUNS TO UP TO SEVEN YEARS IN PRISON FOR TRYING TO ORGANIZE A PROINDEPENDENCE RALLY HOW THEN CAN THE US BEST PROD CHINA INTO TREATING ITS OWN CITIZENS WITH GREATER RESPECT AND CIVILITY THE ANSWER IN OUR VIEW LIES NOT IN RESTRICTING TRADE WHICH HURTS THE VERY PEOPLE THE US WANTS TO HELP THE CHINESE WHO WILL SUFFER FROM DIMINISHED TRADING OPPORTUNITIES WITH THE US ARE THE PRIVATE CITIZENS WHO HAVE SEVERED TIES WITH GOVERNMENT AND ARE RISKING EVERYTHING IN THE PRIVATE SECTOR WHERE THEY ARE MAKING GOODS THAT AMERICANS WANT TO BUY MILLIONS OF INDIVIDUALS ARE STRIKING OUT ON THEIR OWN IN CHINA TODAY AND AS THEY DO SO THEY ARE EXPANDING THE BOUNDARIES OF PERSONAL LIBERTY TRADE OUGHT TO BE RECOGNIZED AS AN ESSENTIAL ELEMENT IN ENCOURAGING THESE TRENDS MOREOVER US COMPANIES THAT ARE TRYING TO CRACK THE CHINESE MARKET WILL LOSE IMPORTANT BUSINESS OPPORTUNITIES AMERICAN CONSUMERS ALSO WILL END UP PAYING HIGHER PRICES FOR CHINESEMADE GOODS THERE IS THE DANGER THAT THE REAL MOTIVE FOR MFN PRESSURE IS PROTECTIONISM WITNESS CONGRESSMAN RICHARD GEPHARDT IN BEIJING LAST WEEKEND CARRYING ON ABOUT MARKET ACCESS A PHRASE MANY ASIANS HAVE COME TO INTERPRET AS JUST ANOTHER CODE WORD FOR PROTECTIONISM THERE IS A ROLE FOR HUMAN RIGHTS IN US POLICY TOWARD CHINA BUT THERE ARE FAR MORE EFFECTIVE METHODS THAN TRADE RESTRICTIONS FOR BRINGING CHINA INTO THE INTERNATIONAL COMMUNITY OF CIVILIZED NATIONS ONE IS TO LIMIT LENDING BY THE MULTINATIONAL LENDING AGENCIES SUCH AS THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND THE ASIAN DEVELOPMENT BANK THE HUGE SUMS LENT BY THESE ORGANIZATIONS END UP IN THE HANDS OF THE CENTRAL GOVERNMENT IN BEIJING ENHANCING THE POWER OF THE OFFICIALS WHO DOLE IT OUT TO POLITICALLY CORRECT CRONIES THE US COULD USE ITS LEVERAGE AT ALL OF THESE INSTITUTIONS TO EXPRESS ITS DISPLEASURE WITH THE CHINESE GOVERNMENT BY WITHHOLDING FUNDS THIS IS NOT A POPULAR NOTION TO BE SURE BUT SURELY IT ISN'T TOO OUTRAGEOUS TO NOTE THAT A COUNTRY THAT IS LAGGING BEHIND IN THIS AREA IS LESS DESERVING OF INTERNATIONAL AID THAN OTHER COUNTRIES THAT ARE MAKING PROGRESS ANOTHER WAY FOR THE US TO EXPRESS ITS DISPLEASURE WITH THOSE WHO MAKE POLICY IN BEIJING WOULD BE TO ACKNOWLEDGE PUBLICLY ANOTHER CHINESE SOCIETY THAT IS WELL ON ITS WAY TO FULL DEMOCRACY TAIWAN SENDING OBSERVERS TO THIS MONTH'S ELECTIONS PRESSING FOR TAIWAN'S ENTRY INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE UNITED NATIONS INVITING PRESIDENT LEE TENGHUI TO THE WHITE HOUSE SUCH SYMBOLIC ACTIONS WOULD HELP TAIWAN'S INCIPIENT DEMOCRACY AND WEAKEN THE PRESTIGE OF BEIJING'S TOTALITARIAN GOVERNMENT THE MESSAGE THAT MR BENTSEN IS CARRYING TO BEIJING IS THAT THE CLINTON ADMINISTRATION IS SERIOUS ABOUT SEEKING AN IMPROVEMENT IN CHINA'S HUMANRIGHTS PERFORMANCE THIS IS THE SAME MESSAGE THAT FORMER PRESIDENT BUSH IS SAID TO HAVE DELIVERED IN HIS PRIVATE VISIT TO CHINA OVER THE WEEKEND AND IT IS THE SAME MESSAGE THAT US SECRETARY OF STATE WARREN CHRISTOPHER WILL CARRY WHEN HE MEETS CHINESE FOREIGN SECRETARY QIAN QICHEN ON MONDAY IN PARIS WE SUPPORT THE MESSAGE BUT WISH THE US WOULD FIND A MORE ECONOMICALLY CONSTRUCTIVE WAY OF BACKING IT UP 9401210028 940121 INTERNATIONAL CRUSADE TO REFORM JAPANESE POLITICS COMES TO A CLIMAX WITH A VOTE TODAY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CLIMAX OF JAPAN'S FIVEYEAR BATTLE TO DISMANTLE ITS CORRUPT ARCHAIC POLITICAL SYSTEM IS SCHEDULED FOR TODAY WITH ALL SIDES PROJECTING A TIGHT CONTEST A VICTORY FOR THE REFORMERS IN THE PARLIAMENTARY VOTE WOULD ALTER THE BASIC RULES THAT HAVE GOVERNED JAPANESE POLITICS SINCE WORLD WAR II IF THE REFORMS PASS EVENTUALLY ALL PARTIES WILL DISSOLVE AND WE WILL BUILD AGAIN NEW PARTIES SAYS KAZUO AICHI THE DEFENSE MINISTER IN THE PROREFORM RULING COALITION THE NEXT PHASE OF POLITICAL TURMOIL WILL START SAYS GERALD L CURTIS A JAPANESEPOLITICS EXPERT AT COLUMBIA UNIVERSITY EVERYTHING HAS BEEN IN A STATE OF SUSPENDED ANIMATION WAITING TO SEE WHAT WILL HAPPEN WITH THESE BILLS MANY ANALYSTS ESTIMATE THE RULING SEVENPARTY COALITION HAS THE NECESSARY STRENGTH TO PASS THE BILLS IN THE VOTE SLATED IN THE UPPER HOUSE OF PARLIAMENT THE FOUR BILLS WON COMMITTEE APPROVAL BY AN 1816 VOTE YESTERDAY BREAKING THE LOGJAM THAT HAS KEPT THEM ON HOLD SINCE PASSING THE LOWER HOUSE TWO MONTHS AGO THE JAPANESE MEDIA LAST NIGHT PREDICTED THE VOTE WILL BE CLOSE WITH LIKELY DEFECTIONS THREATENING THE GOVERNMENT'S THIN PARLIAMENTARY MAJORITY SUCCESS WILL HINGE ON THE COALITION'S ABILITY TO LURE TURNCOATS FROM THE OPPOSITION I'M CONFIDENT TRADE MINISTER HIROSHI KUMAGAI SAID BUT ONLY THE GODS KNOW FOR SURE JAPANESE BUSINESS LEADERS AS WELL AS THE CLINTON ADMINISTRATION ARE ROOTING FOR A TRIUMPH AS SOON AS POSSIBLE MAINLY SO THE JAPANESE GOVERNMENT CAN FINALLY MOVE ON TO OTHER MATTERS SUCH AS JAPAN'S SLUMPING ECONOMY AND STALLED USJAPAN TRADE TALKS PARLIAMENT'S PREOCCUPATION WITH POLITICAL REFORM HAS VIRTUALLY FROZEN POLICYMAKING SINCE NOVEMBER PLANS FOR DRAFTING THE ANNUAL BUDGET ARE A MONTH BEHIND SCHEDULE AND THE TIMING FOR ANNOUNCING A WIDELY EXPECTED TAX CUT HAS SLIPPED BY SEVERAL WEEKS THE GOVERNMENT HAS BEEN SLOW TO DEAL WITH THE ECONOMY KOSAKU INABA HEAD OF THE JAPAN CHAMBER OF COMMERCE AND INDUSTRY GRIPED URGING POLITICIANS TO END THEIR SQUABBLING THE US MEANWHILE WILL GIVE THE JAPANESE GOVERNMENT LITTLE TIME TO CELEBRATE TREASURY SECRETARY LLOYD BENTSEN HAS MADE A LASTMINUTE DECISION TO STOP IN TOKYO SUNDAY ON HIS WAY HOME FROM AN ASIAN TOUR IN ORDER TO PRESS JAPAN'S LEADERS TO WORK HARDER ON DRAFTING A NEW FRAMEWORK FOR BILATERAL TRADE THE TWO COUNTRIES WANT AN AGREEMENT BY THE TIME PRIME MINISTER MORIHIRO HOSOKAWA VISITS PRESIDENT CLINTON IN WASHINGTON FEB 11 THE IMPETUS FOR JAPAN'S REFORM MOVEMENT WAS THE ENDLESS STRING OF FINANCIAL SCANDALS DURING MORE THAN THREE DECADES OF LIBERAL DEMOCRATIC PARTY RULE TO THAT END THE PROPOSED LAWS WOULD REWRITE CAMPAIGNFINANCING RULES CURBING CORPORATE DONATIONS TO INDIVIDUAL POLITICIANS AND PROVIDING PUBLIC FUNDS TO POLITICAL PARTIES BUT LOOPHOLES WOULD REMAIN AND SKEPTICS DOUBT THAT THE COUNTRY'S NOTORIOUS MONEY POLITICS WILL DISAPPEAR SO EASILY THE PACKAGE'S MOST SIGNIFICANT CHANGE WIPES OUT THE OLD ELECTORAL SYSTEM IT REPLACES JAPAN'S MULTISEAT DISTRICTS WITH A COMBINATION OF SINGLESEAT DISTRICTS AND SEATS CHOSEN THROUGH A NATIONAL PROPORTIONAL REPRESENTATION VOTE IT ALSO WOULD REDRAW THE BOUNDARIES OF ALL ELECTORAL DISTRICTS OUR AIM IS TO DESTROY THE POLITICAL WAYS OF THE PAST 40 YEARS SAYS YURIKO KOIKE A FOUNDING MEMBER OF MR HOSOKAWA'S JAPAN NEW PARTY WHICH WAS LAUNCHED NEARLY TWO YEARS AGO WITH THE GOAL OF ALTERING THE POLITICAL SYSTEM THE AIM OF OUR REFORM IS THAT POLITICIANS SHOULD BE POLITICIANS MS KOIKE ADDS THAT SOUNDS LIKE A JOKE BUT IF YOU KNOW THE SITUATION IN JAPAN YOU KNOW THAT'S NOT A JOKE INDEED THE WAY IN WHICH MR HOSOKAWA'S COALITION HAS PROMOTED THE REFORM BILLS REFLECTS A NEW POLITICAL STYLE EVEN WHEN THE LDP HAD A STRONG PARLIAMENTARY MAJORITY IT RARELY PUT ISSUES TO AN OPEN VOTE INSTEAD PREFERRING TO SEEK A CONSENSUS WITH THE OPPOSITION THROUGH BACKROOM NEGOTIATIONS THOUGH MR HOSOKAWA HAS SOUGHT COMPROMISE WITH THE LDP THIS WEEK HE HASN'T HESITATED TO FORCE A VOTE AS HE DID IN YESTERDAY'S COMMITTEE CONTEST THE LDP HAS LABELED SUCH TACTICS FASCISM 9401210027 940121 MUTUAL FUNDS MUTUALFUND MANAGERS FACE CONFLICTS OF INTEREST WHILE SERVING AS DIRECTORS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL MANY PROMINENT MUTUALFUND MANAGERS ARE MOONLIGHTING AS CORPORATE DIRECTORS TAKING TIME OUT FROM THEIR REGULAR JOBS TO SIT ON THE BOARDS OF SMALL COMPANIES THE PRACTICE REVEALED IN REGULATORY FILINGS IS FRAUGHT WITH POTENTIAL CONFLICTS OF INTEREST FOR INSTANCE SOME OF THESE DIRECTORS GET STOCK OPTIONS A VERY LUCRATIVE PROPOSITION FOR THEM IF THE LITTLE STOCK BECOMES A HIGHFLIER A LOOK THROUGH THE FILINGS SHOWS THAT JOHN KAWESKE ISN'T ALONE IN TAKING A BOARDROOM ROLE THAT MIGHT CLASH WITH THE JOB OF FUND MANAGER MR KAWESKE FIRED BY INVESCO FUNDS GROUP FOR FAILING TO REPORT SOME PERSONAL STOCK TRADES HAS BEEN SERVING ON THE BOARD OF A CANADIAN BIOTECH COMPANY CONFLICTS CAN ARISE IN SEVERAL WAYS A MANAGER MIGHT HESITATE TO DUMP A COMPANY'S STOCK FROM A FUND WHILE SITTING ON THAT COMPANY'S BOARD WAITING FOR PERSONAL OPTIONS TO RISE IN VALUE THAT'S THE SITUATION FACING MARTIN WHITMAN OF THIRD AVENUE VALUE FUND WITH ASSETS OF 114 MILLION HE SERVES NOT ONLY ON THE BOARD BUT AS CHAIRMAN OF A FINANCIAL COMPANY THAT HAS GIVEN HIM STOCK OPTIONS AND HE PERSONALLY OWNS A CHUNK OF STOCK AS A DIRECTOR OF DANIELSON HOLDING CORP NEW YORK HE EARNS ONLY 75000 ACCORDING TO LAST SPRING'S PROXY MATERIAL BUT STOCK OPTIONS PROMISE TO GIVE HIM MUCH MORE HE RECEIVED OPTIONS TO PURCHASE 210000 SHARES AT 3 APIECE THE 1993 PROXY MATERIAL SHOWS WITH THE STOCK NOW AT 750 ON THE AMERICAN STOCK EXCHANGE MR WHITMAN HAS A PAPER PROFIT OF 945000 AND A BIG INCENTIVE TO AVOID HAVING HIS FUND DUMP THE STOCK MR WHITMAN ARGUES THAT IT ISN'T AS IF HIS WHOLE LIFE DEPENDED ON ONE STOCK MY FAMILY AND I OWN MAYBE 4 MILLION IN THIRD AVENUE FUND HE SAYS I EAT MY OWN COOKING MOREOVER IN DANIELSON'S CASE I WAS ABLE TO MAKE WHAT I THOUGHT WAS A REAL BARGAIN PURCHASE FOR THE FUND AT A LOWER COST PER SHARE THAN HIS PERSONAL INVESTMENT MR WHITMAN SAYS HIS PERSONAL HOLDINGS IN A PREDECESSOR COMPANY GO BACK TO 1985 SIX YEARS BEFORE THE FUND EVER INVESTED NOW THIRD AVENUE VALUE OWNS 53 OF DANIELSON STOCK AND MR WHITMAN CONTROLS 19 IN TOTAL INCLUDING THE FUND'S STAKE IT'S HARD FOR ME TO SEE HOW A CONFLICT COULD HAPPEN BETWEEN THIRD AVENUE AND DANIELSON BUT I GUESS IT COULD THE MANAGER SAYS IT CAN BE AWKWARD TO HAVE INSIDE INFORMATION ABOUT A STOCK IN WHICH YOUR FUND IS INVESTED LAST YEAR WHEN THIRD AVENUE VALUE FUND OWNED STOCK IN TROUBLED KENTUCKY CENTRAL LIFE INSURANCE CO TWO PARTNERSHIPS AFFILIATED WITH MR WHITMAN WERE BIDDING TO INFUSE A SORELY NEEDED 100 MILLION BUT IN FEBRUARY 1993 THEY CANCELED THAT PLAN TO INVEST THE INSURER'S STOCK COLLAPSED AND WITHIN DAYS THE KENTUCKY INSURANCE COMMISSIONER TOOK OVER THE FIRM IN THIS CASE THE NETTLESOME QUESTION WAS GIVEN MR WHITMAN'S CENTRAL ROLE HOW COULD THE FUND BAIL OUT OF THE STOCK BEFORE THE DAMAGE OCCURRED LEGALLY IT COULDN'T MR WHITMAN SAYS THE MUTUAL FUND HAD TO SUFFER THROUGH THE STOCKPRICE DIVE HOLDING 186000 SHARES SINCE SELLING BEFORE THE PUBLIC ANNOUNCEMENT WOULD HAVE VIOLATED INSIDERTRADING LAWS HOWEVER MR WHITMAN SAYS HE ISN'T SURE WHICH DAY THE FUND SOLD KENTUCKY CENTRAL I DON'T READILY HAVE THE DATA SECURITIES AND EXCHANGE COMMISSION FILINGS BY THE FUND SHOW IT WAS SOMETIME IN THE THREE MONTHS THROUGH APRIL 30 THE PERIOD WHEN THE BAILOUT PLAN FELL THROUGH SOMETIMES CONFLICTS ARISE THAT A MANAGER CAN'T FORESEE BESIDES GETTING PERSONAL OPTIONS ONE FUND MANAGER BOUGHT SHARES OUTRIGHT AT A CHEAPER PRICE THAN THE FUND DID WHICH SOUNDS LIKE A CONFLICT EVEN THOUGH HE SAYS HE NEVER INTENDED THINGS TO TURN OUT THAT WAY HE IS WILLIAM NASGOVITZ COMANAGER OF HEARTLAND VALUE FUND WITH ASSETS OF 163 MILLION THE STOCK IS MILWAUKEE MANUFACTURER REXWORKS INC MR NASGOVITZ SAYS HE PERSONALLY BOUGHT OVER 200000 SHARES WAITING UNTIL LONG AFTER HIS FUND HAD ALREADY BOUGHT IN AND ACQUIRED 175500 SHARES A 941 STAKE BUT MR NASGOVITZ SAYS HE PAID A LOWER PERSHARE PRICE THAN THE FUND DID THE REASON REXWORKS WAS IN CRISIS AND ITS STOCK WAS PLUNGING I FELT SOME MORAL RESPONSIBILITY BELIEVE IT OR NOT SAYS MR NASGOVITZ HE HAD BEEN INSTRUMENTAL IN TAKING REXWORKS PUBLIC WHEN HE WAS PRESIDENT OF MILWAUKEE CO A REGIONAL BROKERAGE FIRM IN 1987 WHEN HE BEGAN BUYING THE STOCK PERSONALLY IN 1989 IT LOOKED TO ME LIKE THE COMPANY WAS GOING TO GO BROKE HE SAYS I HAD TO BE THE CATALYST FOR CHANGE BECAUSE NOBODY ELSE WAS GOING TO DO IT MR NASGOVITZ AND OTHER DISSIDENT SHAREHOLDERS SUCCEEDED IN THROWING OUT THE OLD MANAGEMENT IN A PROXY FIGHT NOW HE'S A MEMBER OF THE COMPENSATION COMMITTEE OF THE REXWORKS BOARD ACCORDING TO LAST APRIL'S PROXY MATERIAL THIS COMMITTEE AWARDED OPTIONS DURING 1992 EACH INDEPENDENT DIRECTOR SUCH AS MR NASGOVITZ GOT OPTIONS TO BUY 7500 REXWORKS SHARES FOR 269 APIECE THE SHARES HAVE SINCE RISEN TO 4875 ON THE NASDAQ STOCK MARKET ALL TOLD AS OF LAST APRIL'S PROXY MATERIAL MR NASGOVITZ HAD OPTIONS TO BUY A TOTAL OF 15000 REXWORKS SHARES IT'S A DIFFICULT SITUATION NO DOUBT ABOUT IT HE SAYS BUT I BELIEVE I PROTECTED THE FUND'S ASSETS BY TAKING THIS POSITION WHEN IT COMES TO WHAT'S A CONFLICT OF INTEREST AND WHAT'S NOT FUND MANAGERS AT DIFFERENT COMPANIES DON'T FOLLOW THE SAME SCRIPT AN EXAMPLE IS ROBERT GINTEL CHAIRMAN OF GINTEL FUND WHO FOUGHT A PROXY BATTLE AWHILE BACK WITH XTRA CORP A BOSTON COMPANY THAT LEASES OUT TRAILERS FOR HAULING CARGO UNLIKE MR NASGOVITZ THIS MANAGER SAYS HE FELT COMPELLED TO SELL HIS FUND'S HOLDINGS OF XTRA AND DID SO BEFORE BEGINNING A PROXY FIGHT I COULDN'T START A PROXY CONTEST IF THE FUND HELD THE SHARES HE OPINES WITH THE PROXY CONTEST WON MR GINTEL NOW SITS ON THE BOARD OF XTRA AS VICE CHAIRMAN GINTEL FUND HAS ASSETS OF 144 MILLION MR GINTEL ALSO IS CHAIRMAN OF ONEITA INDUSTRIES AN ANDREWS SC MAKER OF TSHIRTS WHOSE STOCK GINTEL FUND OWNS HE SAYS HE BOUGHT 900000 SHARES PERSONALLY MORE THAN 12 OF ONEITA'S STOCK ON OCT 6 1993 SEVERAL YEARS EARLIER GINTEL FUND HAD BOUGHT 665000 SHARES MR GINTEL SAYS HE BOUGHT THE SHARES PERSONALLY BECAUSE THE PEOPLE WHO CONTROLLED ONEITA WERE SELLING 25 OF THE STOCK WHICH PUT THE COMPANY ON THE BLOCK AND HURT THE COMPANY WITH CUSTOMERS MR GINTEL HAS OPTIONS ON MORE THAN 2000 SHARES OF XTRA STOCK AND DOESN'T HAVE ANY OPTIONS ON ONEITA WHERE HE DRAWS A SALARY OF 50000 AT ONEITA I'LL MAKE MY MONEY WHEN THE STOCK GOES UP ALONG WITH EVERYBODY ELSE HE SAYS IF WE CAN ENGINEER A TURNAROUND IN ONEITA AS WE DID IN XTRA FUND SHAREHOLDERS WILL BE PLEASED HE SAYS BESIDES WE ONLY DID IT WITH THE APPROVAL OF THE INDEPENDENT TRUSTEES IE DIRECTORS OF THE FUND SOME MANAGERS WHO HOLD PERSONAL STOCK AND OPTIONS IN A COMPANY TRY TO KEEP SOME DISTANCE BETWEEN THAT COMPANY AND THEIR MUTUAL FUND IS THAT GOOD OR BAD FOR THE FUND IT DEPENDS ON WHETHER THE STOCK IS A JEWEL OR A DOG LAWRENCE AURIANA COMANAGER OF THE STRONGPERFORMING KAUFMANN FUND WITH ASSETS OF 1 BILLION IS CHAIRMAN OF MEDIWARE INFORMATION SYSTEMS A SMALL HOSPITALSOFTWARE COMPANY IT SOUNDS LIKE JUST THE SORT OF STOCK HIS FUND MIGHT WANT TO BUY HANS UTSCH THE OTHER MANAGER OF THE FUND IS ALSO ON THE BOARD BUT KAUFMANN FUND DELIBERATELY HASN'T INVESTED IN THE STOCK I DON'T THINK WE CAN BUY MEDIWARE FOR THE FUND MR AURIANA SAYS IT'S SEC RULES PLUS IT'S JUST COMMON SENSE AS WELL AND EVEN IF THERE'S NO SPECIFIC SEC RULE FOR THIS SITUATION HE SAYS IT WOULD BE A CONFLICT OF INTEREST ANYWAY MESSRS AURIANA AND UTSCH GOT ON THE BOARD OF MEDIWARE WHEN WE WERE IN THE VENTURECAPITAL BUSINESS AT BOWLING GREEN SECURITIES THEIR PRIOR EMPLOYER SAYS MR AURIANA HE HAS OPTIONS ON 12500 SHARES AND MR UTSCH HAS OPTIONS ON 3300 SHARES WHY STAY ON THE BOARD OF AN OPERATING COMPANY WHILE WORKING AS A FUND MANAGER THE ADVANTAGE OF CONTINUING TO HAVE THIS EXPOSURE IS WE NEVER FORGET HOW DIFFICULT IT IS FOR SMALL VENTURE COMPANIES AND SMALL COMPANIES IN GENERAL TO SUCCEED MR AURIANA SAYS MEDIWARE HAS STRUGGLED CONTINUOUSLY AND THAT'S ONE OF THE BEST EDUCATIONS SOME FUND MANAGERS SERVING ON BOARDS DO SO AT FOREIGN COMPANIES OR NONPUBLIC BUSINESSES TO AVOID POTENTIAL CONFLICTS OF INTEREST JOHN NEFF THE HIGHLY REGARDED MANAGER OF VANGUARD/WINDSOR IS ON THE BOARD OF GENERAL ACCIDENT LIFE INSURANCE CO THE US SUBSIDIARY OF A COMPANY BASED IN PERTH SCOTLAND VANGUARD SAYS WINDSOR WHOSE ASSETS AMOUNT TO 105 BILLION HASN'T EVER INVESTED IN THE SCOTTISH PARENT AND WON'T IN THE FUTURE MR NEFF TOOK THE POST BECAUSE HE WAS INVITED AND FELT IT WAS PROPER TO DO SO BECAUSE THE SUBSIDIARY WASN'T PUBLICLY TRADED HE CONCLUDED THERE WOULDN'T BE ANY CONFLICT WITH HIS ROLE AS FUND MANAGER SAYS A VANGUARD SPOKESMAN HE ADDS THAT MR NEFF DOESN'T GET OPTIONS FROM BEING ON THE BOARD ANOTHER MANAGER WHOSE MUTUAL FUNDS AREN'T INVESTORS IN ONE OF HIS BIG PERSONAL HOLDINGS IS MARIO GABELLI HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LYNCH CORP A GREENWICH CONN GLASSMACHINERY AND COMMUNICATIONS CONCERN WHOSE SHARES ARE PUBLICLY TRADED MR GABELLI TOOK THE HELM OF LYNCH IN 1986 THE YEAR HE ALSO STARTED UP HIS FIRST MUTUAL FUND PROXY MATERIAL INDICATES THAT MR GABELLI CONTROLS NEARLY 40 OF LYNCH STOCK INCLUDING THE SHARES HELD IN PRIVATE ACCOUNTS HE MANAGES THROUGH INVESTMENT MANAGER GAMCO INVESTORS INC THIS SITUATION RAISES A LESSOBVIOUS PROBLEM IF IT'S SUCH A GOOD INVESTMENT THAT A SMART INVESTOR LIKE MR GABELLI HAS GRABBED A BIG STAKE WHY DON'T HIS MUTUAL FUNDS OWN LYNCH STOCK TOO THEY'RE TRYING TO AVOID A CONFLICT OF INTEREST AN ASSISTANT TO MR GABELLI SAYS THE MUTUAL FUNDS ARE PROHIBITED FROM BUYING LYNCH AS CHAIRMAN AND CEO MR GABELLI DREW COMPENSATION OF 150000 FROM LYNCH IN 1992 WHICH THE PROXY STATEMENT CALLS MATERIALLY BELOW THAT OF CHIEF EXECUTIVE OFFICERS OF COMPARABLE COMPANIES IT ADDS THAT LYNCH IS STUDYING ALTERNATIVES TO PROVIDE MR GABELLI AND THE EXECUTIVE STAFF WITH LONGTERM INCENTIVES 9401210026 940121 THURSDAY'S MARKETS STOCKS CLIMB TO A RECORD BOND PRICES RISE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE EDGED TO ANOTHER RECORD AMID MIXED ECONOMIC NEWS BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIALS GAINED 759 POINTS TO 389196 THE YEAR'S EIGHTH RECORD STANDARD & POOR'S 500STOCK INDEX ROSE 068 TO 47498 LESS THAN A POINT FROM ITS HIGH THE NASDAQ COMPOSITE INDEX CLIMBED 374 TO 79302 EKING OUT A RECORD THE INDUSTRIAL AVERAGE HIT A HIGH DESPITE SOME DISTINCTLY MIXED ECONOMIC NEWS ON THE POSITIVE SIDE THE COMMERCE DEPARTMENT SAID HOUSING STARTS SOARED 62 IN DECEMBER AS 1993'S HOUSING STARTS HIT THEIR HIGHEST LEVEL IN FOUR YEARS THE DECEMBER HOUSING NUMBERS WERE NOTHING SHORT OF SPECTACULAR SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY BUT HE ARGUED THAT THE MORE IMPORTANT ECONOMIC REPORT WAS THE ONE SHOWING A LARGE INCREASE IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE DURING THE WEEK ENDED JAN 15 HE NOTED THAT THE CLAIMS DATA ARE PART OF THE INDEX OF LEADING INDICATORS AND MORE RECENT THAN THE HOUSING STARTS DATA CLAIMS FOR UNEMPLOYMENT INSURANCE APPEAR TO BE RISING SINCE DEC 25 SUGGESTING THAT THE ECONOMIC STRENGTH OF THE FOURTHQUARTER WILL NOT CARRY OVER INTO THE FIRSTQUARTER HE SAID THE MARKETS SEEM TO BE REFLECTING THAT CONCLUSION EVEN THOUGH THE INDUSTRIALS HIT A HIGH STOCKS' PERFORMANCE WAS UNCONVINCING MR JOHNSON SAID AT THE SAME TIME BOND PRICES OVERCAME AN INITIAL DECLINE ON THE STRONG HOUSING STARTS DATA AND CLIMBED IN EXPECTATION THAT A SLOWER ECONOMY WILL FORESTALL AN INCREASE IN INTEREST RATES BY THE FEDERAL RESERVE HE ADDED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADVANCED 017 TO 11438 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3104 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1110 ISSUES ROSE AND 960 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 626 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17380 MARKS AND 11140 YEN COMPARED WITH 17460 MARKS AND 11135 YEN WEDNESDAY 9401210025 940121 ECONOMY HOUSING STARTS CLIMBED BY 62 IN DECEMBER BIG FINISH LIFTED 1993 TOTAL TO A FOURYEAR HIGH PERMITS WERE UP 73 BY DIANA YIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS ROSE 62 LAST MONTH THE COMMERCE DEPARTMENT SAID PUSHING HOMEBUILDING FOR 1993 TO ITS HIGHEST LEVEL IN FOUR YEARS DECEMBER STARTS PUNCTUATED A BRISK FOURTHQUARTER SURGING TO AN ANNUAL RATE OF 1540000 FROM A REVISED 1450000 IN NOVEMBER THE DEPARTMENT SAID FOR ALL OF 1993 HOUSING STARTS TOTALED 1285100 UNITS UP 71 FROM 1199700 IN 1992 AND THE HIGHEST SINCE 1989 WHEN WORK WAS BEGUN ON 1376100 UNITS ECONOMISTS ATTRIBUTED THE STRONG GROWTH TO A GENERALLY BETTER ECONOMY LOW MORTGAGE RATES AND STABLE HOUSING PRICES FACTORS THAT MAKE HOMES NOT ONLY MORE AFFORDABLE BUT ALSO A BETTER INVESTMENT CONSUMERS ARE WILLING TO PUT THEIR MONEY IN AN ASSET THAT IS NOT DEPRECIATING EXPLAINED JOSEPH LIRO CHIEF ECONOMIST FOR SG WARBURG DR LIRO BELIEVES THAT LAST YEAR'S GROWTH WASN'T A ONESHOT DEAL AND THAT HOUSING STARTS WILL RUN AT AN ANNUAL RATE OF NEARLY 15 MILLION BY THE END OF 1994 STILL ANALYSTS WARN THAT THIS MONTH'S FIGURES MIGHT NOT BE SO GOOD WITH THE COLD WAVE IMPAIRING CONSTRUCTION IN MUCH OF THE COUNTRY HOWEVER THIS EFFECT WILL REVERSE WHEN THE WEATHER GETS BETTER SAID BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH & CO THE LOS ANGELES EARTHQUAKE MIGHT HOLD DOWN STARTS IN JANUARY THOUGH REBUILDING MIGHT BOOST THEM LATER ON MR STEINBERG SUGGESTED THAT THE EARTHQUAKE'S EFFECT WOULD BE TOO LOCALIZED TO HAVE A SIGNIFICANT IMPACT ON NATIONAL HOUSINGSTART FIGURES BUILDING PERMITS FOR FUTURE CONSTRUCTION ROSE 73 IN DECEMBER THE COMMERCE DEPARTMENT SAID A FURTHER INDICATION THAT THE UPSWING IN HOMEBUILDING ISN'T TEMPORARY HOMEBUILDING OFTEN IS A MEASURE OF HOW WELL THE OVERALL ECONOMY IS DOING AND THE LATEST FIGURES BODE WELL FOR THE CURRENT RECOVERY WHEN STARTS GO UP AND PERMITS GO UP WE KNOW THIS IS NOT A MOMENTARY RECOVERY DECLARED BOB DAVIS CHIEF ECONOMIST OF SAVINGS & COMMUNITY BANKERS OF AMERICA IN DECEMBER STARTS OF SINGLEFAMILY HOMES CLIMBED A SOLID 35 TO AN ANNUAL RATE OF 1330000 STARTS OF APARTMENT BUILDINGS OF FIVE OR MORE UNITS WHICH VARY WIDELY FROM MONTH TO MONTH ZOOMED 34 IN DECEMBER TO AN ANNUAL RATE OF 177000 UNITS SMALLER MULTIFAMILY UNITS HELD STEADY AT A RATE OF 33000 DECEMBER FIGURES WERE UP IN EVERY REGION EXCEPT THE NORTHEAST WHERE HOMEBUILDING CONTRACTED BY 35 FROM NOVEMBER THE WEST WHERE STARTS HAVE BEEN CLIMBING AFTER BEING DEPRESSED BY THE LONG CALIFORNIA ECONOMIC SLUMP POSTED THE SHARPEST INCREASE 147 FROM NOVEMBER IN A SEPARATE REPORT THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE 23000 LAST WEEK TO 380000 FROM A REVISED 357000 THE WEEK BEFORE THE FOURWEEK AVERAGE OF WEEKLY CLAIMS CONSIDERED A BETTER SIGNAL OF LABORMARKET CONDITIONS ROSE 12500 TO 346750 FIGURES IN BOTH REPORTS HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS SEPARATELY THE PRESIDENT OF THE SAN FRANCISCO FEDERAL RESERVE BANK SAID HE DOESN'T EXPECT ECONOMIC GROWTH THIS QUARTER TO MATCH THE TORRID PACE OF THE 1993 FOURTHQUARTER IN REMARKS PREPARED FOR DELIVERY IN RENO NEV ROBERT PARRY NOTED THAT WHILE MOST ESTIMATES PUT ECONOMIC GROWTH AT A 5 ANNUAL RATE IN THE FOURTHQUARTER IT'S UNLIKELY THAT THIS RATE OF GROWTH WILL CONTINUE HE ESTIMATED THAT ABOUT TWO PERCENTAGE POINTS OF THE FOURTHQUARTER SURGE CAN BE ATTRIBUTED TO AN INCREASE IN AUTO PRODUCTION THAT WAS DESIGNED TO REPLENISH DEPLETED INVENTORIES A FACTOR THAT ISN'T LIKELY TO RECUR MR PARRY WHO IS AMONG THE FIVE REGIONAL FED BANK PRESIDENTS WITH A VOTE ON MONETARY POLICY THIS YEAR ANTICIPATES 2 1/2 GROWTH SMALL REDUCTIONS IN THE UNEMPLOYMENT RATE AND A FURTHER MODERATE REDUCTION IN INFLATION IN 1994 WITH A GOOD DEAL OF THE SLACK IN THE ECONOMY ELIMINATED CONTINUED RAPID GROWTH COULD LEAD TO HIGHER INFLATION IN THE FUTURE MR PARRY SAID A PERIOD OF MODERATE GROWTH WOULD BE AN EXCELLENT OUTCOME 9401210024 940121 TORONTO BRONFMANS' HOLDINGS ARE TAKING MORE WRITEDOWNS TORONTO THE CORPORATE EMPIRE CONTROLLED BY TORONTO'S BRONFMAN FAMILY WAS HIT BY MORE BIG WRITEDOWNS TOTALING 4335 MILLION CANADIAN DOLLARS US3309 MILLION REFLECTING EFFORTS BY THE GROUP TO FINALLY PUT BEHIND IT THE PROBLEMS OF RECENT YEARS IN ITS REALESTATE HOLDINGS THE BULK OF THE WRITEDOWNS OR C3409 MILLION RELATES TO TRIZEC CORP A CALGARY ALBERTA DEVELOPER THAT IS CURRENTLY NEGOTIATING WITH ITS CREDITORS TO RESTRUCTURE SOME C19 BILLION OF DEBT OTHER WRITEDOWNS IN THE GROUP REFLECT DECLINING VALUES OF PROPERTIES MAINLY IN CALIFORNIA THAT ARE HELD BY OTHER COMPANIES IN THE GROUP AFTER TWO CONSECUTIVE YEARS OF BIG WRITEDOWNS ON ITS PROPERTY ASSETS THE BRONFMAN GROUP IS SIGNALING THAT IT BELIEVES THE BLEEDING IS STANCHED WE'VE HIT A LOT OF THESE INVESTMENTS VERY HARD WITH WRITEDOWNS BOTH LAST YEAR AND THIS YEAR I'M VERY HOPEFUL WE'VE SEEN THE END OF IT THERE ARE SOME SIGNS THE INDUSTRY IS BEGINNING TO EMERGE FROM A FOURYEAR PROPERTY SLUMP SAID GORDON ARNELL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CARENA DEVELOPMENTS LTD THE KEY HOLDING COMPANY IN THE BRONFMANS' REALESTATE INTERESTS TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ALSO HAVE INTERESTS IN FINANCIAL SERVICES AND NATURAL RESOURCES THE BROTHERS ARE COUSINS OF MONTREAL'S BRONFMAN FAMILY WHICH CONTROLS THE SEAGRAM CO DISTILLING DYNASTY BUT THE TWO FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON THE WRITEDOWNS DIDN'T COME AS A SURPRISE TRIZEC WHICH HAS BEEN IN DEFAULT ON SOME OF ITS DEBT SINCE THE FALL HAD SAID IT WOULD REVALUE THE ASSETS ON ITS BALANCE SHEET IN ANTICIPATION OF REACHING A RESTRUCTURING PACT WITH ITS CREDITORS 9401210023 940121 WHO'S NEWS PAUL REVERE CORP PAUL REVERE CORP WORCESTER MASS ROGER E BRINNER EXECUTIVE DIRECTOR AND CHIEF ECONOMIST OF DRI/MCGRAWHILL OF LEXINGTON MASS WAS NAMED A DIRECTOR OF THIS INSURANCE HOLDING COMPANY EXPANDING BOARD MEMBERSHIP TO EIGHT MR BRINNER IS A FORMER SENIOR STAFF MEMBER OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISORS 9401210022 940121 WHO'S NEWS OUTBOARD MARINE CORP OUTBOARD MARINE CORP ROBERT D RANDOLPH 58YEAROLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF MARINE ENGINES AND BOATS WAS ELECTED A DIRECTOR FILLING A VACANCY 9401210021 940121 SOVEREIGN BANCORP ROW BY 2 AIDES ENDS LITIGATION IS DROPPED WYOMISSING PA AN UNUSUAL DISPUTE BETWEEN THE CHAIRMAN AND PRESIDENT OF SOVEREIGN BANCORP A THRIFT HOLDING COMPANY ENDED WHEN THE BANK DROPPED A LAWSUIT AGAINST THE CHAIRMAN AND THE CHAIRMAN ENDED A SUIT AGAINST THE PRESIDENT THE COMPANY FILED SUIT AGAINST FREDERICK J JAINDL THE NONEXECUTIVE CHAIRMAN AND A MAJOR STOCKHOLDER IN DECEMBER CLAIMING THAT HE HAD VIOLATED FEDERAL REGULATIONS BY ATTEMPTING TO SELL SOVEREIGN WITHOUT FIRST CLEARING IT WITH THE BOARD MR JAINDL RESPONDED BY FILING A COUNTERSUIT CHARGING THE BANK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JAY S SIDHU WITH BREACH OF FIDUCIARY DUTY THE LITIGATION IS ALL OVER AND WE ARE BACK ON THE ROAD MR JAINDL SAID IN AN INTERVIEW MR SIDHU ECHOED THE SAME FEELINGS IN A WRITTEN STATEMENT WE ARE VERY PLEASED TO PUT ALL OUR PAST DIFFERENCES BEHIND US THE FEUD GREW OUT OF MR JAINDL'S WISH TO TAKE ADVANTAGE OF THE HIGH PRICES THAT HAVE BEEN PAID FOR BANKS RECENTLY COMPLAINING THAT THE BANK WASN'T QUICK ENOUGH TO RESPOND TO THE INTEREST OF POTENTIAL ACQUIRERS HE ARGUED THAT THE BANK SHOULD HIRE AN INVESTMENT BANKER TO EVALUATE THE POSSIBILITY OF A SALE MR SIDHU HOWEVER ARGUED THAT STOCKHOLDERS WOULD BE BEST SERVED IF THE BANK CONTINUED TO BE INDEPENDENT THE BANK'S STOCK PRICE ROSE MORE THAN 600 BETWEEN DECEMBER 1990 AND LAST DEC 31 ACCORDING TO ELIZABETH SUMMERS A BANKING AND THRIFT ANALYST WITH RYAN BECK & CO WEST ORANGE NJ SOVEREIGN REPORTED FOURTHQUARTER NET INCOME WAS 86 MILLION OR 24 CENTS A SHARE UP 91 FROM 45 MILLION OR 18 CENTS A SHARE A YEAR EARLIER THE QUARTER'S RESULTS INCLUDE A 25 MILLION CHARGE FOR RESTRUCTURING IN CONNECTION WITH SOVEREIGN'S NOVEMBER ACQUISITION OF VALLEY FEDERAL SAVINGS & LOAN ASSOCIATION THE BANK SAID THE IMPROVEMENT WAS DUE IN PART TO INCREASED LOAN ORIGINATIONS AND CONTINUED PROGRESS IN INTEGRATING ITS ACQUISITIONS NET INTEREST INCOME FOR THE QUARTER WAS 321 MILLION UP 72 FROM 187 MILLION THE YEAR BEFORE THE COMPANY SAID FORECASTS FOR 1994 NET INTEREST INCOME ARE VERY FAVORABLE FOR ALL OF 1993 NET INCREASED 124 TO 354 MILLION OR 1 A SHARE FROM 158 MILLION OR 63 CENTS A SHARE A YEAR EARLIER FULLYEAR EARNINGS INCLUDE A 48 MILLION CHARGE FOR INCOMETAX CHANGES ASSETS AT YEAR END TOTALED 45 BILLION 9401210020 940121 METRICOM CONTRACT IS EXTENDED LOS GATOS CALIF METRICOM INC GOT A 7 MILLION EXTENSION ON A CONTRACT WITH SCECORP'S SOUTHERN CALIFORNIA EDISON CO UNIT METRICOM SAID THE CONTRACT COVERS THE INITIAL PHASE OF A TWOYEAR PROGRAM UNDER WHICH METRICOM'S UTILINET DIVISION WILL SUPPLY A WIRELESS DATACOMMUNICATIONS NETWORK FOR SOCAL ED'S DISTRIBUTIONSYSTEM EFFICIENCYENHANCEMENT PROJECT A METRICOM SPOKESMAN SAID THE EXTENSION IS FOR ADDITIONAL PRODUCT ORDERS AND BOOSTS THE VALUE OF THE CONTRACT TO 12 MILLION 9401210019 940121 NATURE'S SUNSHINE BRAZILIAN UNIT PROVO UTAH NATURE'S SUNSHINE PRODUCTS INC FORMED A SUBSIDIARY TO DISTRIBUTE THE COMPANY'S FULL LINE OF HERBS AND NUTRITIONAL PRODUCTS IN BRAZIL THE COMPANY SAID THE UNIT WILL BE IN OPERATION IN APRIL 9401210018 940121 BUSINESS BRIEF DATA GENERAL CORP LOSS OF 211 MILLION DROP IN REVENUE POSTED FOR PERIOD DATA GENERAL CORP CITING DISAPPOINTING SALES IN EUROPE AND IN ITS ECLIPSE MINICOMPUTER LINE POSTED A LOSS OF 211 MILLION OR 60 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED DEC 25 THAT COMPARES WITH NET INCOME OF 800000 OR TWO CENTS A SHARE IN THE YEARAGO QUARTER REVENUE DECLINED 66 TO 2612 MILLION FROM 2796 MILLION THE WESTBORO MASS COMPANY BLAMED A 50 DROP IN REVENUE FROM ITS ECLIPSE LINE AND A 30 DECLINE IN EUROPEAN REVENUE FOR ITS DISAPPOINTING RESULTS HOWEVER THE COMPANY SAID ITS AVIION SALES CONTINUED TO CLIMB AVIION IS A NEWER SYSTEM THAT UNLIKE THE OLDER ECLIPSE LINE CAN USE STANDARD UNIX SOFTWARE THAT ALSO RUNS ON MANY OTHER MAKERS' COMPUTERS SINCE THE INTRODUCTION OF AVIION FOUR YEARS AGO THE COMPANY HAS INSTALLED MORE THAN 23000 SUCH SYSTEMS RESULTING IN TOTAL REVENUE OF MORE THAN 1 BILLION 9401210017 940121 WORD ABUSE A LEXICON BY DENNIS PRAGER A POLITICAL WAY OF THINKING HAS SO PERMEATED THE AMERICAN CONSCIOUSNESS THAT IT HAS CHANGED THE WAY IN WHICH WE USE ENGLISH BELOW A LEXICON THAT SHOWS HOW CERTAIN WORDS ARE USED BY MAJOR AMERICAN NEWSPAPERS BY THE ELECTRONIC NEWS MEDIA ESPECIALLY TELEVISION AND BY MANY INDIVIDUALS IN PUBLIC AND PRIVATE DEBATE CONSERVATIVE A PERSON WITH SELFISH MOTIVES LIBERAL A PERSON WITH ALTRUISTIC MOTIVES NB IN 11 YEARS OF DOING TALK RADIO I NEVER ONCE SPOKE TO A LIBERAL WHO BELIEVED THAT A PERSON WHO VOTED FOR RONALD REAGAN OR GEORGE BUSH COULD BE MOTIVATED BY ALTRUISM REPUBLICANS BY DEFINITION VOTE WITH THEIR POCKETBOOKS ULTRACONSERVATIVE A PERSON WHO IS TOO CONSERVATIVE ULTRALIBERAL TERM NOT USED ONE CANNOT BE TOO LIBERAL NB I READ SIX NEWSPAPERS A DAY AND COUNTLESS JOURNALS I HAVE NEVER ENCOUNTERED THE TERM ULTRALIBERAL OR ARCHLIBERAL I READ OR HEAR ABOUT ULTRA OR ARCHCONSERVATIVES ALL THE TIME CHRISTIAN RIGHT CONTEMPTIBLE PEOPLE WHO ALWAYS TRY TO IMPOSE THEIR VALUES ON OTHER AMERICANS LIBERALS IDEALISTIC PEOPLE WHO NEVER TRY TO IMPOSE THEIR VALUES ON OTHER AMERICANS NB WHEN CHRISTIANS TRY TO PUT THEIR VALUES INTO LAW FOR EXAMPLE PREVENTING GOVERNMENT FUNDS FROM GOING TO WHAT EVEN MOST LIBERALS WOULD CONSIDER TO BE OBSCENE ART THEY ARE ATTACKED FOR TRYING TO IMPOSE THEIR VALUES ON OTHERS HOWEVER WHEN LIBERALS PASS LAWS REFLECTING THEIR VALUES EG FORCING STATES TO ALLOW GAY AND LESBIAN COUPLES THE SAME RIGHT TO ADOPT CHILDREN AS MARRIED COUPLES THAT IS NOT REGARDED AS IMPOSING VALUES BUT SIMPLY THE RIGHT THING TO DO ABORTION A FORM OF BIRTH CONTROL WOMEN'S RIGHTS SUPPORTING THE RIGHT TO DESTROY A HUMAN FETUS FOR PERSONAL CONVENIENCE ANIMAL RIGHTS OPPOSING THE RIGHT TO DESTROY A RABBIT FOR CANCER RESEARCH NB IN OUR TIME THE INTELLECTUAL AND MORAL NORM IS TO REGARD A BABY SEAL AS OF INFINITELY MORE WORTH THAN A HUMAN FETUS FETUS AN UNBORN BABY THAT IS TO BE ABORTED BABY AN UNBORN BABY THAT IS NOT TO BE ABORTED NB WHEN A WOMAN IS PREGNANT AND WANTS TO GIVE BIRTH NO ONE ASKS HER NO MATTER HOW EARLY IN THE PREGNANCY SO HOW'S THE FETUS DOING WE ONLY USE THE TERM FETUS WHEN WE PLAN TO DESTROY IT OTHERWISE WE USE BABY FROM THE FIRST DAY OF PREGNANCY WOMAN AUTHENTIC A WOMAN WHO HOLDS LIBERAL VIEWS WOMAN INAUTHENTIC A WOMAN WHO DOES NOT HOLD LIBERAL VIEWS NB GLORIA STEINEM CALLED TEXAS SEN KAY BAILEY HUTCHISON A FEMALE IMPERSONATOR USA TODAY JUNE 11 1993 MS HUTCHISON IS A CONSERVATIVE REPUBLICAN CENSORSHIP THE REFUSAL OF THE GOVERNMENT TO FUND A RADICAL ARTIST NB CENSORSHIP WAS ALWAYS UNDERSTOOD AS THE PROHIBITION OF EXPRESSION ACCORDING TO THE ARTS COMMUNITY AND ITS SUPPORTERS HOWEVER CENSORSHIP NOW MEANS GOVERNMENTAL REFUSAL TO FUND A WORK OF ART CENSORS CHRISTIANS WHO BOYCOTT VIOLENT TV SHOWS SOCIAL ACTIVISTS HOLLYWOOD ACTORS WHO BOYCOTT COLORADO HITLER YOUTH PEOPLE WHO AMONG OTHER TERRIBLE THINGS DROWNED OUT LIBERAL SPEAKERS WITH WHOM THEY DISAGREED AND DESTROYED LIBERAL NEWSPAPERS WITH WHICH THEY DISAGREED PROGRESSIVE STUDENTS PEOPLE WHO AMONG OTHER GOOD THINGS DROWN OUT CONSERVATIVE SPEAKERS WITH WHOM THEY DISAGREE AND DESTROY CONSERVATIVE NEWSPAPERS WITH WHICH THEY DISAGREE NB THUS THE PROGRESSIVE STUDENTS WHO STOLE ALL COPIES OF THE CONSERVATIVE PAPER AT THE UNIVERSITY OF PENNSYLVANIA WERE EXONERATED AND THE GUARDS WHO STOPPED THEM WERE CHASTISED FOR INTERFERING IN A STUDENT PROTEST THE SOVIET UNION BEFORE ITS FALL AN ALTERNATIVE SYSTEM OF GOVERNMENT THAT SHOULD NOT BE CONDEMNED WITH SUCH COLD WAR LABELS AS EVIL EMPIRE THE SOVIET UNION AFTER ITS FALL AN EVIL EMPIRE NB SINCE THE FALL OF THE SOVIET UNION NEARLY EVERYONE NOW SPEAKS OF COMMUNISM IN THE TERMS THAT COLD WARRIORS USED RELIGIOUS EXTREMIST A PERSON WHO IS TOO RELIGIOUS USUALLY MEANING THAT THE PERSON HOLDS TRADITIONAL RELIGIOUS BELIEFS AND IS POLITICALLY ACTIVE SECULAR EXTREMIST TERM NOT USED ONE CANNOT BE TOO SECULAR NB THOSE WHO CALL FOR THE RIGHT TO MENTION GOD'S NAME IN HIGHSCHOOL GRADUATION EXERCISES ARE RELIGIOUS EXTREMISTS WHILE THOSE LIKE THE AMERICAN CIVIL LIBERTIES UNION WHO LITIGATE AGAINST SCHOOLS THAT POST THE TEN COMMANDMENTS ON THEIR WALLS ARE NEVER DESCRIBED AS SECULAR EXTREMISTS SEXIST A MAN WHO DISAGREES WITH WOMEN WHO HOLD LIBERAL VIEWS FOR THE TERM FOR A WOMAN WHO DISAGREES WITH WOMEN WHO HOLD LIBERAL VIEWS SEE WOMAN INAUTHENTIC NB THIS IS WHY SEN EDWARD KENNEDY ONE OF THE MOST NOTORIOUS WOMANIZERS IN AMERICAN PUBLIC LIFE IS NEVER CALLED SEXIST HE DOESN'T DISAGREE WITH LIBERAL WOMEN'S GROUPS HOWEVER MEN WHO TREAT WOMEN BEAUTIFULLY AND RESPECT THEM AS EQUALS BUT DO NOT AGREE WITH THE NATIONAL ORGANIZATION FOR WOMEN ARE SEXIST TOLERANCE OPENNESS TO ALL IDEAS ON THE LEFT RAGE THE EXCUSE FOR VIOLENCE COMMITTED AGAINST INNOCENT PEOPLE BY MEMBERS OF AN AGGRIEVED MINORITY NB SINCE THE THUGS WHO TERRORIZE TURKISH IMMIGRANTS IN GERMANY ARE WHITE THEIR ACTIONS ARE NEVER UNDERSTOOD IN TERMS OF RAGE ONLY CONDEMNED CORRECTLY AS THUGGERY BUT WHEN BLACK THUGS TERRORIZED KOREAN IMMIGRANTS IN LOS ANGELES THEIR ACTIONS WERE CONSTANTLY UNDERSTOOD IN TERMS OF THEIR RAGE VICTIMS NEARLY ALL BLACKS AND WOMEN BUT ESSENTIALLY MEMBERS OF EVERY GROUP EXCEPT WHITE HETEROSEXUAL MALES THE GROUP MUST ALSO BE ASSOCIATED WITH LIBERAL ACTIVISM NB THUS KOREANAMERICANS THOUGH THE PRIMARY VICTIMS OF THE LOS ANGELES RIOTS ARE NEVER REFERRED TO AS VICTIMS THEY HOLD CONSERVATIVE VIEWS IDEAL FAMILY ANY UNIT OF PEOPLE NB TO DEFINE THE IDEAL FAMILY AS A MARRIED MOTHER AND FATHER WITH CHILDREN IS TO BE INTOLERANT AND JUDGMENTAL PROGRESSIVE VIEW OF HUMANITY DIVIDING PEOPLE BY THEIR RACE GENDER AND CLASS REACTIONARY VIEW OF HUMANITY DIVIDING PEOPLE BY THEIR VALUES AND BEHAVIOR BLACKS AUTHENTIC BLACKS WHO HOLD LIBERAL VIEWS IN PARTICULAR THAT AMERICA IS RACIST AND THAT RACISM IS THE GREATEST BLACK PROBLEM BLACKS INAUTHENTIC BLACKS WHO DO NOT HOLD LIBERAL VIEWS ESPECIALLY IF THEY HOLD THAT AMERICA IS NOT RACIST AND THAT RACISM IS NOT THE GREATEST BLACK PROBLEM SUCH BLACKS ALSO ARE KNOWN AS UNCLE TOMS RACIST A WHITE WHO DOES NOT AGREE WITH A POSITION HELD BY THE CIVIL RIGHTS LEADERSHIP NB TO CITE ONE OF INNUMERABLE EXAMPLES A NUMBER OF BLACK LEADERS HAVE LABELED SUPPORT FOR SCHOOL VOUCHERS AS RACIST EVEN THOUGH SCHOOL VOUCHERS TEND TO BE SUPPORTED MORE BY INNERCITY BLACKS THAN BY WHITE SUBURBANITES BUT SINCE THE LIBERAL BLACK LEADERSHIP IS OPPOSED TO VOUCHERS SUPPORT FOR IT IS RACIST WHITE RACISM REDUNDANT TERM BLACK RACISM TERM NOT USED IT DOES NOT EXIST AN IDEA PERPETRATED BY WHITE RACISTS POVERTY THE REASON FOR MURDER RAPE AND CARJACKINGS GREED THE REASON FOR EMBEZZLEMENT INSIDER TRADING AND OTHER WHITECOLLAR CRIMES MINORITIES MEMBERS OF GROUPS WHOSE SPOKESPEOPLE ARE ANGRY AT AMERICA THUS CUBAN JAPANESE KOREAN AND JEWISHAMERICANS ARE RARELY REFERRED TO AS MINORITIES COMMUNITY A TERM CREATED IN ORDER TO IMPLY THAT MEMBERS OF A VICTIMIZED GROUP ALL HOLD THE SAME LIBERAL VIEWS CIVIL RIGHTS ORGANIZATIONS ORGANIZATIONS THAT HOLD WHITE PEOPLE RESPONSIBLE FOR THE MAJORITY OF BLACKS' PROBLEMS FEMINIST ORGANIZATIONS ORGANIZATIONS THAT HOLD MEN RESPONSIBLE FOR THE MAJORITY OF WOMEN'S PROBLEMS BLAMING THE VICTIM MAKING MORAL DEMANDS OF ANY MEMBER OF A VICTIMIZED MINORITY SEE VICTIMS MR PRAGER WRITES ULTIMATE ISSUES A QUARTERLY JOURNAL FROM WHICH THIS ARTICLE IS ADAPTED HE HOSTS A DAILY TALK SHOW ON KABC RADIO IN LOS ANGELES 9401210016 940121 PEPPERAND SALT I AM ASSOCIATING WITH USUALLY MEANS IT IS FRENCH WINE FOREIGN ADE 9401210015 940121 COMMODITIES GOLD SILVER PRICES FALL IN WHAT SOME ANALYSTS SEE AS CORRECTION FOR AN OVEREXTENDED MARKET BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES FELL IN A DAY OF RETRENCHMENT FOR A MARKET THAT SOME ANALYSTS SAID HAS OVEREXTENDED ITSELF WITH TWO MONTHS OF PRICE GAINS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 480 TO 38790 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVERFUTURES CONTRACT WAS DOWN 72 CENTS TO 5275 AN OUNCE BRITISH NEWS REPORTS YESTERDAY ASSERTED THAT 1240 TONS OF GOLD STASHED BY FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS HAD BEEN FOUND IN A WAREHOUSE IN SWITZERLAND DISCOVERY OF A PREVIOUSLY UNKNOWN HOARD OF GOLD OF THAT SIZE MORE THAN HALF THE WORLD'S ANNUAL OUTPUT OF GOLD AND WORTH ABOUT 125 BILLION AT CURRENT PRICES COULD BE EXPECTED TO PRESSURE PRICES LOWER ANALYSTS SAID BUT THE NEWS REPORTS WEREN'T CONFIRMED BY OFFICIAL SOURCES THE RUMOR TITILLATED TRADERS ANALYSTS SAID BUT IT WASN'T THE PRIMARY REASON FOR YESTERDAY'S BROADBASED DECLINE RATHER THE MARKET SEEMS TO BE IN THE THROES OF SOME KIND OF DISTRIBUTION NOW THRASHING ABOUT IN AN UNORDERLY FASHION SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC MR SAVAIKO SAID HE BELIEVES THE CURRENT CHOPPINESS OF THE MARKET COULD BE THE PREFACE TO A SHARP PRICE DROP THAT COULD SEE THE PRICE OF GOLD FALL WELL BELOW 380 OTHERS AREN'T SO SURE HOWEVER I THINK THE MAJORITY OF YESTERDAY'S DECLINE WAS TECHNICALLY INSPIRED SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I THINK THERE WILL BE FURTHER CONSOLIDATION HOW FAR IT GOES I'M NOT SURE BUT I THINK THIS IS JUST A TEMPORARY CORRECTION IN AN OVERALL BULL TREND WHAT IS CLEAR IS THAT SPECULATORS OF ALL SIZES BAILED OUT OF LONG POSITIONS OR WAGERS THAT FUTURES PRICES WOULD RISE AS PRICES FELL YESTERDAY THROUGH KEY LEVELS THESE INVESTORS INCLUDING BIG AND INFLUENTIAL COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY HELPED TO EXACERBATE THE DECLINE BY SELLING FUTURES CONTRACTS GLOOMY TRADERS SHRUGGED OFF A SEEMINGLY POSITIVE HOUSINGSTARTS REPORT IN WHICH THE COMMERCE DEPARTMENT REPORTED HIGHERTHANEXPECTED CONSTRUCTION OF NEW HOMES DURING ITS CLIMB IN RECENT MONTHS THE PRICE OF GOLD HAS RECEIVED SUPPORT FROM A SERIES OF SIMILARLY POSITIVE US ECONOMIC REPORTS ALSO EXERTING DOWNWARD PRESSURE ON GOLDFUTURES PRICES YESTERDAY MR SAVAIKO SAID WAS A REPORT IN THIS NEWSPAPER THAT INSIDERS AT CERTAIN GOLDMINING COMPANIES HAD SOLD SHARES OF THEIR COMPANIES' STOCKS IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF MOST CROPFUTURES CONTRACTS SKIDDED FOR THE THIRD CONSECUTIVE DAY AS COMMODITYFUND MANAGERS CONTINUED TO TAKE PROFITS ON LONGLASTING RALLIES IN THE GRAINFUTURES PITS GRAIN PRICES HAVE CLIMBED SINCE THE DISAPPOINTING CROPS HARVESTED LAST FALL IN THE MIDWEST WHICH SUFFERED FROM RECORD RAIN AND FLOODING IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY SLIPPED 175 CENTS A BUSHEL TO SETTLE AT 372 A BUSHEL SOYBEAN PRICES FELL CORN PRICES SETTLED MIXED SPARKS COS A MEMPHIS TENNBASED AGRICULTURAL FORECASTING CONCERN TOLD CLIENTS IT EXPECTS US CORN FARMERS TO PLANT 798 MILLION ACRES THIS SPRING UP 83 FROM THE 737 MILLION ACRES PLANTED LAST YEAR ENERGY HEATINGOIL PRICES FELL SHARPLY AMID THE BELIEF SUPPLIES WERE ADEQUATE TO MEET HEIGHTENED WINTER DEMAND THE DROP IN HEATING OIL DRAGGED DOWN CRUDE PRICES TOO THE DECLINE CAME DESPITE THE LATEST OILINVENTORY DATA WHICH SHOWED THAT HEATINGOIL STOCKS FELL BY ABOUT 48 MILLION BARRELS IN THE LATEST WEEK SOME MARKET PARTICIPANTS SAID A DRAWDOWN THAT SIZE WAS EXPECTED AND A LARGER ONE WAS NEEDED TO RAISE SUPPLY QUESTIONS AND BOOST PRICES ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR FEBRUARY DELIVERY FELL 212 CENTS A GALLON TO 4796 CENTS WEATHER FORECASTS THAT THE RECORD COLD SPELL ACROSS MUCH OF THE COUNTRY WAS COMING TO AN END ALSO DEPRESSED PRICES FEBRUARY CRUDE OIL SETTLED AT 1510 A BARREL DOWN 12 CENTS 9401210014 940121 NASD REVEALS ACTIONS TAKEN FOR VIOLATIONS SIX FIRMS MANY INDIVIDUALS DISCIPLINED FOR BREAKING LAWS AND REGULATIONS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST SIX FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATIONS OF SECURITIES LAWS AND INDUSTRY REGULATIONS TEXAS AMERICAN SECURITIES CORP DALLAS WAS EXPELLED BASED ON FINDINGS THAT THE FIRM FAILED TO MEET MINIMUM NET CAPITAL REQUIREMENTS DALLAS/PARK CITIES SECURITIES INC DALLAS AND PRINCIPAL CHARLES ROYCE GOODBREAD WERE FINED 10000 JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE FULL AMOUNT THEY AGREED TO REFRAIN FROM SELLING SECURITIES AS A PRINCIPAL AT PRICES BELOW 10 A SHARE FOR A YEAR THE FIRM WAS SUSPENDED FROM NASD MEMBERSHIP FOR SEVEN DAYS AND REQUIRED TO PAY 5110 IN RESTITUTION TO PUBLIC CUSTOMERS MR GOODBREAD WAS ALSO SUSPENDED FOR 15 DAYS IN ADDITION PRINCIPAL JEREMY STEVEN COHEN DALLAS WAS FINED 5000 SUSPENDED FOR 30 DAYS AND ALSO REQUIRED TO PAY 12345 IN RESTITUTION TO PUBLIC CUSTOMERS AND PRINCIPAL EDDIE HAROLD LANDERS FORT WORTH TEXAS WAS FINED 10000 AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR FIVE BUSINESS DAYS THE DALLAS/PARK CITIES GROUP DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY MADE SECURITIES SALES IN VIOLATION OF NASD MARKUP POLICY AND OPERATED A BRANCH OFFICE OF ANOTHER MEMBER FIRM WITHOUT REGISTERING WITH THE NASD STARBOARD CAPITAL CORP WILLIAMSVILLE NY AND PRINCIPAL CASIMER J JASZEWSKI ONTARIO CANADA WERE FINED 10000 JOINTLY AND SEVERALLY AND SUSPENDED UNTIL THEY HONOR AN NASD ARBITRATION AWARD OR FOR AT LEAST FIVE BUSINESS DAYS THE NASD SAID THEY FAILED TO PAY A 1096943 ARBITRATION AWARD DH DAMON & CO NEW YORK WAS FINED 30000 AND REQUIRED TO PAY 5767130 IN RESTITUTION AND INTEREST TO PUBLIC CUSTOMERS PRINCIPAL DAMON D TESTAVERDE STATEN ISLAND AND PRINCIPAL RONALD I HELLER ORANGEBURG NY WERE EACH FINED 20000 SUSPENDED IN ANY CAPACITY FOR TWO WEEKS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR TWO MONTHS THE NASD SAID THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY CAUSED A STOCK PRICE TO RISE DURING A DISTRIBUTION AND FAILED TO ENFORCE PROCEDURES TO COMPLY WITH SECURITIES AND EXCHANGE COMMISSION RULES UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT NETWORK 1 FINANCIAL SECURITIES INC RED BANK NJ WAS FINED 17500 JOINTLY AND SEVERALLY WITH PRINCIPAL RICHARD D O'REILLY OCEAN NJ AND 17500 JOINTLY AND SEVERALLY WITH PRINCIPAL WILLIAM R HUNT JR ROBBINSVILLE NJ MR HUNT WAS SUSPENDED FOR 21 DAYS AND MR O'REILLY FOR 45 DAYS BROKER BRUCE C ROTHENBERG LANCASTER NY WAS FINED 5000 AND SUSPENDED FOR 30 DAYS BROKER SHAHEN BEDROSIAN NIAGARA FALLS NY WAS FINED 2500 AND SUSPENDED FOR 20 DAYS THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY DISTRIBUTED TO THE PUBLIC SHARES THAT HADN'T BEEN REGISTERED WITH THE SEC AND OF MAKING UNTRUE STATEMENTS TO CUSTOMERS AMONG OTHER CHARGES LAURA SPEDALE CORPORATE COUNSEL FOR NETWORK 1 SAID THE FIRM AND ITS PRINCIPALS WERE FRAUDULENTLY DECEIVED BY A NONASSOCIATED CONTROL INDIVIDUAL AND COULDN'T HAVE KNOWN OF HIS ALLEGED VIOLATIONS NETWORK 1 ACTED ONLY AS AN AGENT TO FACILITATE THE TRANSACTIONS WESTONKA INVESTMENTS INC MINNETONKA MINN AND PRINCIPAL TIMOTHY JOEL FRIEDERICHS WERE FINED 50000 JOINTLY AND SEVERALLY AND MR FRIEDERICHS WAS SUSPENDED FOR SEVEN DAYS THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY SOLD UNREGISTERED SECURITIES INDIVIDUALS DISCIPLINED INCLUDED ROBERT WILLIAM COX MEDFORD ORE FINED 5000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING CHARGES ANTHONY M DEGRAZIER ADA MICH FINED 13000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES AND RONALD J DIMURA MIDDLESEX NJ FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THE NASD DISCIPLINED SEVEN INDIVIDUALS WHO DIDN'T ADMIT OR DENY CHARGES THAT THEY ENGAGED IN ABUSIVE AND COERCIVE SALES PRACTICES IN DISTRIBUTING SALES SCRIPTS TO BROKERS OF THEIR FIRM THE DISCIPLINED BROKERS INCLUDED JOHN KEVIN DENNEE FINED 15000 SUSPENDED FOR 30 DAYS AND BARRED IN A PRINCIPAL CAPACITY BERNARD RAYMOND SCHMITT SMYRNA GA STANLEY JAMES SICILIANO ROCHESTER NY AND JEFFREY HAROLD SUPINSKY MASSAPEQUA NY EACH FINED 10000 AND SUSPENDED FOR 15 DAYS JEFFREY DAVID BROWN AURORA COLO WAS FINED 15000 AND SUSPENDED FOR 30 DAYS WHICH CONCLUDED DEC 30 1993 AND JOEL EDWARD SNOW LITTLETON COLO WAS FINED 10000 AND BARRED DAVID JOHN ECKERT ROCHESTER NY WAS FINED 5000 AND SUSPENDED FOR 90 DAYS DAVID PAUL DURKO JR BRICK NJ WAS SUSPENDED FOR FIVE BUSINESS DAYS FOR FAILING TO PAY A 5000 ARBITRATION AWARD JASON DRU DVORIN PLANO TEXAS WAS SUSPENDED AS A PRINCIPAL UNTIL HE MEETS CERTAIN QUALIFICATIONS ADAM BURTON FOX PARLIN NJ WAS BARRED CHRISTOPHER GEDNEY MAHOPAC FALLS NY WAS FINED 50000 BARRED AND REQUIRED TO PAY 1123152 IN RESTITUTION TO A MEMBER FIRM WITHOUT ADMITTING OR DENYING CHARGES OF FORGING CUSTOMER SIGNATURES THOMAS E GRAVES III NASHVILLE TENN WAS FINED 10000 AND SUSPENDED FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS MR GRAVES SAID I PUT IN SEVEN YEARS AS AN NASD LICENSED BROKER AND NEVER HAD ONE CUSTOMER COMPLAINT THE NASD ALLEGATIONS INVOLVE EXCESSIVE AMOUNTS OF TRADING ACTIVITY AND UNAUTHORIZED TRADES MR GRAVES SAID THIS INSTANCE STEMMED FROM A CUSTOMER'S ESTRANGED SON WHO ALSO FILED SUIT AGAINST VARIOUS FAMILY MEMBERS THE STATE INVESTIGATORS DROPPED VIRTUALLY ALL CHARGES ONCE I EXPLAINED THE SITUATION THE NASD WAS VERY UNRESPONSIVE AND VERY INFLEXIBLE FIVE INDIVIDUALS WERE DISCIPLINED IN CONNECTION WITH TWO BLIND POOL OFFERINGS WITH EXCESSIVE MARKUPS OF FROM 10 TO 266 ABOVE THE FIRM'S CONTEMPORANEOUS COST PRINCIPAL JOHN G HARMANN AURORA COLO WAS SUSPENDED FOR 90 DAYS BROKERS FINED 5000 EACH AND SUSPENDED FOR FIVE DAYS WERE SHIRLEY A GARRITY DENVER DAVID C GREEN DENVER GENE A HOCHEVAR BOULDER COLO AND GUY R LABONE LAKEWOOD COLO THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL CHARLES GREGORY HEINS BLOOMINGTON ILL WAS FINED 35000 BARRED AND REQUIRED TO PAY 1438568 IN RESTITUTION LESS ANY AMOUNTS ALREADY PAID TO A MEMBER FIRM PAUL EUGENE HENDRICKS MONROE LA WAS FINED 5000 SUSPENDED FOR THREE YEARS AND REQUIRED TO PAY 1300 IN RESTITUTION JAMES EARL JACOBY ELK GROVE CALIF WAS FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES ANDRE D JOHNSON CHICAGO WAS FINED 10000 AND SUSPENDED FOR FIVE BUSINESS DAYS BRETT JOHN KACURA SAN FRANCISCO WAS FINED 52920 AND BARRED YOUNG S LEE MINEOLA NY WAS FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT KEITH MALKIN CASTAIC CALIF WAS SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO DEBRA CAIN MCALLISTER QUITMAN TEXAS WAS FINED 23675 AND BARRED PHILIP EVERETT MERCHANT REDLANDS CALIF WAS SUSPENDED FOR SEVEN DAYS AND BARRED AS A GENERAL SECURITIES PRINCIPAL CARLOS MONTANEZ MURILLO BAKERSFIELD CALIF WAS FINED 41240 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN L PITTS NORTH BABYLON NY WAS FINED 50000 BARRED AND REQUIRED TO PAY 466326 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL JOHN POLANSKY SR HICKORY HILLS ILL WAS FINED 50000 BARRED AND REQUIRED TO PAY 381366 IN RESTITUTION CAROLYN PAULA POWERS PASADENA CALIF WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS LYNN MARIE RACH LAKE FOREST CALIF WAS FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS CARLOS RECONCO ELIZABETH NJ WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS EDWARD A RIZZO MCGRAW NY WAS FINED 8500 AND BARRED ALSO JAMES M RUSSEN JR MIDDLE ISLAND NY WAS FINED 50000 AND SUSPENDED FOR 30 BUSINESS DAYS SANCTIONS AFFIRMED BY THE SEC DONNA I SCHMEHL ANTIOCH ILL WAS FINED 50000 BARRED AND REQUIRED TO PAY 973276 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN ROBERT SCHWENGER DENVER WAS ORDERED TO PAY 65000 IN RESTITUTION FINED 10000 WITH THE PROVISO THAT THE FINE CAN BE REDUCED BY ANY AMOUNT PAID TO A FIRM IN RESTITUTION AND SUSPENDED FOR 15 BUSINESS DAYS MARK P SHAIN NORTH COLLINS NY WAS BARRED WITHOUT ADMITTING OR DENYING FINDINGS AND GENE WILBUR WILLIAMS JR ROCKLIN CALIF WAS FINED 5000 AND SUSPENDED FOR 10 BUSINESS DAYS CHARLES E YENGLIN LAKE CITY MICH WAS FINED 45000 BARRED AND REQUIRED TO PAY 549891 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT DOUGLAS ZILLER ROCHESTER MINN WAS FINED 5000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS STEPHEN RUSSELL BOADT MARINA DEL REY CALIF WAS FINED 10000 AND REQUIRED TO TAKE A FINANCIAL AND OPERATIONS PRINCIPAL EXAMINATION WITHIN 120 DAYS IF HE FAILS TO PASS THE EXAMINATION DURING THAT PERIOD HE MAY NOT ACT IN ANY PRINCIPAL CAPACITY UNTIL HE PASSES THE EXAM THE SEC MODIFIED THE SANCTIONS FOLLOWING APPEAL 9401210013 940121 LETTERS TO THE EDITOR AT THE MERCY OF HMO MANAGERS IN RESPONSE TO YOUR DEC 30 PAGEONE ARTICLE PHYSICIANS FIGHT BACK AS INSURERS CUT THEM FROM HEALTH NETWORKS MASSIVE ACCUMULATION OF FINANCIAL AND POLITICAL POWER IS RAPIDLY MOVING INTO THE HANDS OF THE LARGE FORPROFIT INSURANCE COMPANIES AND THEIR HMOS GIVING THEM ALMOST DICTATORIAL POWER OVER THE JOBS AND INCOMES OF PHYSICIANS THE INSURANCE INDUSTRY'S FREEDOM FROM ANTITRUST CONSTRAINTS VIA THE 1945 MCCARRANFERGUSON ACT COUPLED WITH ENORMOUS UNTAXED FINANCIAL RESERVES THAT CAN BE USED FOR BUYING AND CREATING HMOS GIVE THEM AN UNIQUE ADVANTAGE IN THE CLIMB TO THE PINNACLE OF THE HEALTH CARE POWER MOUNTAIN WHILE PHYSICIAN INCOMES WILL GO DOWN AND DOWN THE INCOMES AND PERKS OF MARGINALLY EDUCATED HMO AND INSURANCE EXECUTIVES WILL GO UP AND UP FOR SOCIETY MOVING FROM FEE FOR SERVICES AN INHERENTLY WASTEFUL BUT QUALITY ORIENTED SYSTEM TO THE LESS IS BEST CAPITATION WORLD OF GIANT FORPROFIT HMOS IS LIKE TRADING A GREAT DANE THAT COULD BE HOUSEBROKEN FOR A BULL RHINO THAT MAY CRUSH ANYTHING THAT HAPPENS TO GET IN ITS PATH IF A PATIENT DEVELOPS CANCER AT THE END OF AN HMO'S FISCAL YEAR AND THE ONCOLOGIST THEY GO TO IS 50000 OVER BUDGET MANAGEMENT WILL STRONGLY ENCOURAGE WHEN POSSIBLE THE ONCOLOGIST TO TELL THE PATIENT THAT THERE IS NO CHEMOTHERAPY THAT WILL BENEFIT HIM AND WHEN NOT POSSIBLE WILL STRONGLY ENCOURAGE THE ONCOLOGIST TO TREAT THE PATIENT WITH THE LOWESTCOSTING DRUG PROTOCOL AVAILABLE FOR THAT PARTICULAR CANCER NO THERAPY AND MINIMAL THERAPY FOR CANCER PATIENTS WILL BE THE BUZZ PHRASES FOR HMO EXECUTIVES IN OUR NEW HEALTH CARE SYSTEM AS AN ONCOLOGIST I FEAR FOR TOMORROW'S CANCER PATIENTS WHO WILL BE AT THE MERCY OF THE BOTTOM LINE MANAGERS AT CAPITATION HMOS WHO PRACTICE MEDICINE WITHOUT KNOWLEDGE WISDOM COMPASSION OR A LICENSE MEDICAL PRACTICE BY INSURANCE FIAT WILL EVISCERATE QUALITY AND THE ART OF MEDICINE FROM MEDICAL CARE YOUR EXCELLENT ARTICLE ENTITLED LOSING PATIENTS SHOULD BE READ AS A CAUTIONARY STORY BY CITIZENS WHO WILL REQUIRE MEDICAL CARE UNDER AN INCREASINGLY MANAGED SYSTEM NOT JUST AS A DESCRIPTION OF THE PROBLEMS OF PRACTITIONERS LARGER SYSTEMS OF CARE WHETHER GOVERNMENT OR CORPORATE MAY SET PARAMETERS AND PROVIDE REPORT CARDS ON CARE THIS APPROACH SHOULD BE THOUGHT OF AS A USEFUL PUBLICHEALTH MODEL FOR CARE AND IS PROTECTIVE OF BROAD POPULATIONS OF PATIENTS UNFORTUNATELY INDIVIDUALS MAY NOT BE WELLPROTECTED WHEN ONLY THAT MODEL IS USED ONLY A PHYSICIAN WITH AN ONGOING RELATION TO A PATIENT OVER TIME CAN CARE AND ADVOCATE RENDERING FAR MORE THAN JUST TECHNICAL CARE TO THEIR PATIENTS FRIGHTENINGLY THE CURRENT TREND IN MANAGED CARE AIMS TO DESTROY THE DOCTOR/PATIENT RELATIONSHIP MDS ARE INCREASINGLY INTIMIDATED AWAY FROM ACTIVE ADVOCACY FOR FEAR OF BEING DROPPED FROM NETWORKS AND THUS SUFFERING THE LOSS OF REFERRALS AND LIVELIHOOD PATIENTS LIKE COMMODITIES ARE SHIFTED FROM PROVIDER PANEL AND THUS LOSE THEIR CHAMPIONS WHEN AMERICANS SAY THEY WANT THEIR OWN DOCTOR THEY DON'T SIMPLY MEAN THEY WANT THE MD THEY HAVE NOW THEY MEAN THEY DON'T WANT TO BE FREQUENTLY SHIFTED FROM ONE MD TO ANOTHER AS MUST OCCUR FOR MANAGED COMPETITION TO WORK RATHER THEY WANT A RELATIONSHIP WITH AN MD WHOSE JUDGMENT THEY TRUST THEY WANT A SYSTEM IN WHICH THAT DOCTOR IS ABLE TO ADVOCATE FOR THEIR BEST INTERESTS WITHOUT FEAR OF REPRISAL THEY WORRY THEY WILL GET COMPANY DOCTORS WHO ARE CONTROLLED NOT PRIMARILY BY THEIR CLINICAL NEEDS BUT BY THE CALCULUS OF CORPORATE BOTTOM LINES 9401210012 940121 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ BENGT SAMUELSSON 59 YEARS OLD WAS ELECTED A DIRECTOR OF THIS LIPOSOME AND LIPIDBASED PHARMACEUTICALS COMPANY INCREASING THE BOARD TO EIGHT MEMBERS DR SAMUELSSON IS PRESIDENT AND A PROFESSOR AT THE KAROLINSKA INSTITUTET IN STOCKHOLM 9401210011 940121 TECHNOLOGY STUDY WITH RATS MIMICS DAMAGE FROM ALZHEIMER'S SEATTLE REUTER RESEARCHERS HAVE FOR THE FIRST TIME SUCCESSFULLY CREATED CHANGES IN THE BRAINS OF LABORATORY RATS THAT MIMIC DAMAGE SEEN IN ALZHEIMER'S DISEASE ACCORDING TO A REPORT PUBLISHED IN THE JOURNAL NEURON THE TECHNIQUE SHOULD GREATLY ACCELERATE RESEARCH INTO CAUSES OF ALZHEIMER'S AND HELP DEVELOP NEW TREATMENTS FOR THE INCURABLE MINDDESTROYING DISEASE THAT AFFLICTS SOME FOUR MILLION AMERICANS SAID STUDY AUTHOR ALAN SNOW WE ARE NOW GOING TO BE ABLE TO ANSWER MANY QUESTIONS THAT COULDN'T BE ANSWERED BEFORE SAID DR SNOW A NEUROPATHOLOGIST AT THE UNIVERSITY OF WASHINGTON SCHOOL OF MEDICINE WHO WORKED WITH COLLABORATORS IN CALIFORNIA CANADA AND JAPAN CURRENTLY THE ONLY WAY FOR DOCTORS TO BE CERTAIN THAT A PATIENT HAS ALZHEIMER'S DISEASE IS TO LOOK AT A PIECE OF THE PATIENT'S BRAIN UNDER THE MICROSCOPE FOR THAT REASON MOST CASES AREN'T CONFIRMED UNLESS THERE IS AN AUTOPSY AFTER DEATH IN ALZHEIMER'S A PROTEIN CALLED AMYLOID ACCUMULATES IN THE BRAIN FORMING DENSE CLUMPS CALLED AMYLOID PLAQUES 9401210010 940121 TECHNOLOGY VARIAN REPORTS PROFIT ROSE 77 IN ITS FIRST PERIOD BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF VARIAN ASSOCIATES INC SAID ITS FISCAL FIRSTQUARTER NET INCOME SHOT UP 77 AND NEW ORDERS HIT RECORDS SIGNALING THAT ITS TURNAROUND STRATEGY IS PAYING OFF THE COMPANY WHICH MAKES ELECTRONICS EQUIPMENT AND DEVICES USED TO MAKE SEMICONDUCTORS EARNED 117 MILLION OR 65 CENTS PER SHARE COMPARED WITH 66 MILLION OR 36 CENTS A SHARE IN THE YEAREARLIER PERIOD IN THE LATEST QUARTER ENDED DEC 31 SALES ROSE 11 TO 3238 MILLION FROM 2913 MILLION MOREOVER VARIAN INDICATED THAT THE REST OF THE YEAR COULD BE ALMOST AS STRONG WITH EARNINGS GROWTH OF AS MUCH AS 50 AND SALES GAINS OF AS MUCH AS 10 IN FISCAL 1993 ENDED OCT 2 1993 VARIAN HAD NET INCOME OF 458 MILLION ON SALES OF 13 BILLION OUR SITUATION HAS BRIGHTENED DRAMATICALLY IN THE PAST THREE TO FOUR MONTHS SAID CHAIRMAN AND CHIEF EXECUTIVE J TRACY O'ROURKE WHO IS CREDITED WITH REVIVING THE COMPANY HE CITED THE COMPOUNDING EFFECT OF DOUBLEDIGIT SALES GROWTH IN KEY BUSINESSES PLUS OPERATING EFFICIENCIES THAT HE HAS IMPLEMENTED OVER THE PAST FEW YEARS IT USED TO BE A TERRIFIC TECHNOLOGY COMPANY THAT COULDN'T MAKE A BUCK SAID MICHAEL LAUER AN ANALYST WITH KIDDER PEABODY & CO MR O'ROURKE TRANSFORMED IT INTO A TERRIFIC TECHNOLOGY COMPANY THAT AT SAME TIME CAN MAKE A LOT OF DOUGH THE STREET DOESN'T FULLY YET APPRECIATE HOW MUCH IT CAN MAKE INDEED SOME ANALYSTS INCLUDING MR LAUER RAISED THEIR EARNINGS ESTIMATES YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT 65625 UP 125 THIS IS THE FOURTH TURNAROUND ASSIGNMENT FOR MR O'ROURKE 58 YEARS OLD WHO WAS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT ROCKWELL INTERNATIONAL CORP BEFORE HE TOOK OVER VARIAN IN EARLY 1990 AMONG OTHER CHANGES HE DIVESTED THE COMPANY OF UNDERPERFORMING OPERATIONS INCREASED THE MARKET SHARE OF ITS HIGHERMARGIN PRODUCTS AND SLASHED THE WORK FORCE TO 7800 PEOPLE FROM 12400 VERY FEW COMPANIES WOULD RIVAL THIS TURNAROUND IN TERMS OF OPERATING PERFORMANCE AND OTHER IMPROVEMENTS MR LAUER SAID NEW ORDERS ROSE 29 TO 440 MILLION THE HIGHEST OF ANY QUARTER IN THE COMPANY'S HISTORY LEADING THAT SURGE WERE HEALTHCARE SYSTEMS AND SEMICONDUCTOR EQUIPMENT ITS ORDER BACKLOG WAS 738 MILLION AN INCREASE OF MORE THAN 100 MILLION FROM THE PREVIOUS QUARTER AND THE YEAREARLIER PERIOD MR O'ROURKE SAID HE ALSO EXPECTED SLUGGISH SALES IN EUROPE AND JAPAN TO PICK UP IN COMING MONTHS WE STILL HAVE A FEW MORE YEARS WHERE THIS IS GOING TO BE VERY EXCITING NOTHING'S EVER PERFECT BUT IT'S GOING PRETTY GOOD NOW MR O'ROURKE SAID 9401210009 940121 MADISON AVENUE EXPECTED TO POST LACKLUSTER YEAR AD AGENCIES EKE OUT GAINS BY BEING FRUGAL AMID REBOUNDING ECONOMY BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL AN ECONOMIC REBOUND CONTINUES TO ELUDE MADISON AVENUE WITH AGENCY HOLDING COMPANIES EXPECTED TO FINISH THE YEAR WITH UNSPECTACULAR EARNINGS GROWTH INDUSTRY ANALYSTS SAY BIG PUBLICLY TRADED ADVERTISING COMPANIES ARE EXPECTED TO EKE OUT RESPECTABLE EARNINGS GAINS BUT ANALYSTS SAY THAT MUCH OF THAT GROWTH WILL CONTINUE TO COME FROM SCORCHEDEARTH COSTCUTTING MEASURES NOT FROM NEW CLIENTS AND ADSPENDING INCREASES ANALYSTS EXPECT LACKLUSTER EARNINGS FROM INTERPUBLIC GROUP OF COS THE NEW YORK PARENT OF THE MCCANNERICKSON LINTAS AND LOWE GROUP ADVERTISING NETWORKS INTERPUBLIC NORMALLY DELIGHTS ANALYSTS WITH PREDICTABLE EARNINGS GROWTH OF 12 TO 14 BUT ANALYSTS SAY THAT WON'T HAPPEN THIS YEAR AL GOTTESMAN MEDIA ANALYST AT PAINEWEBBER EXPECTS INTERPUBLIC TO REPORT FOURTHQUARTER EARNINGS OF 65 CENTS A SHARE UP JUST 5 FROM THE PREVIOUS YEAR'S QUARTER FOR THE YEAR MR GOTTESMAN PREDICTS 165 A SHARE REPRESENTING A 10 INCREASE FROM LAST YEAR WHEN THE COMPANY POSTED EARNINGS OF 150 BEFORE AN ACCOUNTING ADJUSTMENT RELATED TO POSTRETIREMENT BENEFITS THEY'RE MAKING MONEY BY SAVING MONEY MR GOTTESMAN SAYS THERE ISN'T A WHOLE LOT OF REVENUE GROWTH DEAN WITTER ANALYST JAMES DOUGHERTY EXPECTS INTERPUBLIC'S FOURTHQUARTER EARNINGS TO RISE 10 TO 68 CENTS A SHARE HE PREDICTS THE COMPANY WILL REPORT YEAREND EARNINGS AT 167 11 AHEAD OF LAST YEAR MR DOUGHERTY SAID SOFT AD SPENDING IN EUROPE AND SEVERAL ACCOUNT LOSSES AT INTERPUBLIC'S LINTAS WERE CONTRIBUTING FACTORS IN A YEAR WHEN YOU'RE TRYING TO WRING OUT EVERY LAST PENNY IT ALL ADDS UP HE SAID OMNICOM GROUP NEW YORK PARENT COMPANY OF AGENCIES INCLUDING BBDO DDB NEEDHAM AND TBWA ADVERTISING IS EXPECTED TO DO SOMEWHAT BETTER MR DOUGHERTY SEES QUARTERLY EARNINGS OF 84 CENTS A SHARE UP 16 FROM THE YEAREARLIER QUARTER AND YEAREND RESULTS OF 257 A SHARE UP 17 FROM 1992 WHEN THE COMPANY REPORTED EARNINGS OF 220 A SHARE BEFORE AN ACCOUNTING CHANGE MR DOUGHERTY AND MANY OTHER ANALYSTS FOLLOW THE COMPANY'S FULLY DILUTED SHARES FOOTE CONE & BELDING COMMUNICATIONS CHICAGO IS EXPECTED TO REPORT IMPROVED EARNINGS IN 1993 ANALYSTS PREDICT THE COMPANY WILL REPORT FOURTHQUARTER EARNINGS OF 106 UP 80 FROM THE YEAREARLIER QUARTER WHEN THE COMPANY TOOK A CHARGE OF 36 MILLION OR 33 CENTS A SHARE TO REVALUE CERTAIN ASSETS AND LIABILITIES FOR THE YEAR THE COMPANY IS EXPECTED TO REPORT NET INCOME OF 230 A SHARE UP 15 FROM THE YEAR EARLIER RECENT WINS AT FOOTE CONE'S NEW YORK OFFICE FCB/LEBER KATZ PARTNERS HAVE HELPED THE AGENCY RECOVER FROM A RETRENCHING PERIOD WHEN IT SHED UNPROFITABLE OPERATIONS AND RESTRUCTURED ITS ADVERTISING BUSINESS MOST RECENTLY THE NEW YORK OFFICE PICKED UP AMERICAN TELEPHONE & TELEGRAPH CO'S GIANT CONSUMER LONGDISTANCE ACCOUNT WPP GROUP AND SAATCHI & SAATCHI CO PLC BOTH STRUGGLING TO SERVICE MOUNTAINS OF DEBT ARE EXPECTED TO POST MODEST RESULTS WPP THE OWNER OF THE OGILVY & MATHER AND J WALTER THOMPSON AGENCIES AMONG OTHERS IS EXPECTED TO REPORT EARNINGS OF THREE CENTS PER AMERICAN DEPOSITARY RECEIPT IN THE SECOND HALF OF 1993 COMPARED WITH EIGHT CENTS IN THE SECOND HALF OF 1992 ACCORDING TO DEAN WITTER'S MR DOUGHERTY FOR THE FULL YEAR OF 1993 HE EXPECTS WPP TO POST EIGHT CENTS PER ADR COMPARED WITH FIVE CENTS IN 1992 ONE ADR EQUALS TWO FULLY DILUTED WPP SHARES SAATCHI & SAATCHI HAD BEEN EXPECTED TO POST STRONG RESULTS AT THE END OF 1993 BUT THE COMPANY HAS BEEN SET BACK BY A PAIR OF MAJOR ACCOUNT LOSSES IN THE SECOND HALF LOSING CHRYSLER CORP AS A CLIENT WHEN IT PULLED THE 135 MILLION JEEPEAGLE ACCOUNT FROM SAATCHI'S CME KHBB AND LOSING HELENE CURTIS INDUSTRIES WHEN SAATCHI & SAATCHI ADVERTISING RESIGNED FROM THE 80 MILLION ACCOUNT TO RESOLVE POTENTIAL CLIENT CONFLICTS THE LOSSES WERE A BIG BLOW TO THEM MR DOUGHERTY OBSERVED NOW THEY'RE RIGHT BACK IN THE SOUP MR DOUGHERTY EXPECTS SAATCHI TO REPORT SIXMONTH EARNINGS OF EIGHT CENTS PER AMERICAN DEPOSITARY SHARE IN 1993 COMPARED WITH A LOSS OF TWO CENTS IN THE SECOND HALF OF 1992 FOR THE YEAR SAATCHI IS EXPECTED TO REPORT EARNINGS OF 16 CENTS PER ADS COMPARED WITH EIGHT CENTS IN THE PREVIOUS YEAR ONE ADS EQUALS THREE SAATCHI SHARES 9401210008 940121 BUSINESS BRIEF RAYTHEON NET ROSE 91 ON STRONG SALES IN FOURTH QUARTER RAYTHEON CO CITING STRONG SALES OF ITS AIRCRAFT PRODUCTS AND APPLIANCE GOODS SAID FOURTHQUARTER EARNINGS GREW 91 THE LEXINGTON MASS MAKER OF AIRCRAFT MISSILES ELECTRONIC EQUIPMENT AND APPLIANCES HAD NET INCOME OF 1854 MILLION OR 137 A SHARE COMPARED WITH 170 MILLION OR 126 A SHARE IN THE YEAREARLIER PERIOD SALES CLIMBED 5 TO 252 BILLION FROM 239 BILLION RAYTHEON SAID AIRCRAFT PRODUCTS SALES IN 1993 ROSE TO 147 BILLION FROM 125 BILLION IN 1992 OPERATING PROFIT FOR THAT PART OF RAYTHEON'S BUSINESS ROSE TO 182 MILLION FROM 140 MILLION THE COMPANY'S ELECTRONICS SALES FELL TO 479 BILLION IN 1993 FROM 498 BILLION THE YEAR BEFORE OPERATING PROFIT FOR THE SEGMENT ROSE TO 812 MILLION FROM 760 MILLION THE COMPANY ATTRIBUTED LOWER SALES TO DELAYS IN RECEIPT OF INTERNATIONAL GOVERNMENT ORDERS ENERGY AND ENVIRONMENTAL SALES FELL TO 172 BILLION FROM 176 BILLION OPERATING PROFIT WITHIN THE GROUP FELL TO 115 MILLION FROM 147 MILLION RAYTHEON SAID SALES FOR THE SEGMENT WERE HIGHER EXCLUDING 1992 SALES OF SEISMOGRAPH AND GEOQUEST WHICH WERE SOLD IN 1992 THE COMPANY ATTRIBUTED THE HIGHER SALES TO INCREASED CONSTRUCTION ACTIVITY BUT SAID PROFITS FELL BECAUSE OF CONTRACT RECEIPT TIMING AND OF HIGHER COSTS ON AN INTERNATIONAL PROJECT RAYTHEON SAID ITS SALES IN ITS MAJOR APPLIANCES SEGMENT ROSE TO 123 BILLION FROM 107 BILLION WHILE OPERATING PROFIT ROSE TO 48 MILLION FROM 34 MILLION FOR THE FULL YEAR RAYTHEON REPORTED EARNINGS INCREASED 91 TO 693 MILLION OR 511 A SHARE FROM 6351 MILLION OR 472 A SHARE SALES ROSE SLIGHTLY TO 92 BILLION FROM 906 BILLION 9401210007 940121 TANDEM COMPUTERS POSTS 42 NET RISE FOR ITS FIRST PERIOD CUPERTINO CALIF TANDEM COMPUTERS INC BENEFITING FROM COSTCUTTING SURPRISED ANALYSTS WITH BETTERTHANEXPECTED FISCAL FIRSTQUARTER NET INCOME ON A SLIGHT DECREASE IN REVENUE FOR THE PERIOD ENDED DEC 31 THE MAINFRAMECOMPUTER MAKER EARNED 249 MILLION OR 22 CENTS A SHARE AFTER A ONETIME GAIN OF 23 MILLION OR 20 CENTS A SHARE FROM THE PREVIOUSLY REPORTED SALE OF ITS APPLIED COMMUNICATIONS INC SOFTWARE UNIT TANDEM'S PROFIT WAS 42 ABOVE THE YEAREARLIER QUARTER WHEN IT POSTED NET OF 175 MILLION OR 16 CENTS A SHARE AFTER A GAIN OF 124 MILLION OR 11 CENTS A SHARE FROM AN ACCOUNTING CHANGE OPERATING PROFIT WAS TWO CENTS A SHARE WELL ABOVE THE SIXCENT LOSS THAT ANALYSTS HAD EXPECTED TANDEM'S SHARES JUMPED ON THE NEWS GAINING 1625 OR 13 TO 1375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REVENUE FOR THE RECENT PERIOD SLIPPED 17 TO 4756 MILLION FROM 4838 MILLION ANALYSTS HAD EXPECTED A LARGER DECLINE BUT TANDEM SURPRISED THEM BY SELLING MORE OF ITS NEWLY INTRODUCED HIMALAYA COMPUTERS THE IMPROVED PERFORMANCE COMES AFTER DISAPPOINTING FISCAL THIRD AND FOURTH QUARTERS WHERE TANDEM BLAMED WEAK RESULTS ON A POOR ECONOMY AND FIERCE PRICE COMPETITION AS MORE OF ITS CUSTOMERS MOVED AWAY FROM TANDEM'S EXPENSIVE MAINFRAME COMPUTERS TO SMALLER LESSEXPENSIVE COMPUTERS IN A NEWS RELEASE TANDEM'S PRESIDENT AND CHIEF EXECUTIVE JAMES G TREYBIG SAID THAT WE ARE PLEASED WITH OUR ABILITY TO GENERATE PROFIT IN A HISTORICALLY WEAK QUARTER HE NOTED THAT TANDEM IS SEEING A RESURGENCE IN ITS MAJOR CUSTOMER BASE THE FINANCIALSERVICES MARKET WHERE DEMAND HAS BEEN WEAK IN RECENT YEARS 9401210006 940121 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON STEPHEN D CHESEBRO' 52 YEARS OLD WAS NAMED CHIEF EXECUTIVE OF THIS INDUSTRIAL CORPORATION'S TENNECO GAS UNIT EFFECTIVE FEB 28 HE IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER MR CHESEBRO' WILL SUCCEED ROBERT C THOMAS 64 WHO WILL RETIRE AS CHAIRMAN AND CHIEF EXECUTIVE THE CHAIRMAN'S POSITION WON'T BE FILLED 9401210005 940121 ELDEC GETS ACQUISITION INQUIRIES LYNNWOOD WASH ELDEC CORP SAID SEVERAL CORPORATIONS HAVE EXPRESSED AN INTEREST IN ACQUIRING IT THE MAKER OF ELECTRONIC SYSTEMS FOR THE AEROSPACE INDUSTRY SAID IT HIRED A UNIT OF MORGAN STANLEY GROUP INC TO HELP ANALYZE THE INQUIRIES NO FURTHER DETAILS WERE AVAILABLE 9401210004 940121 WORLD MARKETS TOKYO PRICES FINISH HIGHER IN VOLATILE SESSION LONDON'S BULL RUN CORRALLED BY PROFITTAKING A WALL STREET JOURNAL ROUNDUP EQUITIES ENDED HIGHER THURSDAY IN A VOLATILE TOKYO SESSION WITH HEAVY TRADING LONDON'S RECENT BULL RUN ENDED AS STOCKS WERE SENT LOWER ON PROFITTAKING AND CORPORATE DEVELOPMENTS THOUGH A LATE RECOVERY HELPED LIFT PRICES FROM THE DAY'S LOWS THE GERMAN CENTRAL BANK'S DECISION TO LEAVE ITS INTEREST RATES UNCHANGED HELPED PUSH PRICES DOWN ON SEVERAL EUROPEAN BOURSES AROUND THE PACIFIC RIM STOCKS HIT ANOTHER SIXYEAR HIGH IN SYDNEY BUT FELL IN HONG KONG FOR THE FIRST TIME IN FIVE SESSIONS AS MOST ASIAN EXCHANGES LOST GROUND MEXICAN STOCKS RACED UP 21 TO A RECORD WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11438 UP 017 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS MINING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13127 UP 273 OR 21 WITH ICA OF MEXICO POSTING A 58 GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 20259 DOWN 826 OR 39 WITH CIRCUS CIRCUS ENTERPRISES OF THE US SLIDING 58 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RALLIED 52485 POINTS WEDNESDAY GAINED 14452 TO 1918392 THE HIGHEST FINISH SINCE NOV 2 IN TRADING FRIDAY THE NIKKEI ROSE 090 POINT TO CLOSE THE MORNING SESSION AT 1918482 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES UP FROM 4133 MILLION SHARES A DAY EARLIER AND THE MOST TURNOVER THIS YEAR GAINERS TOPPED DECLINERS 537486 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SOARED 2976 POINTS WEDNESDAY ADDED 964 TO 155079 STOCKS WERE FIRST LED HIGHER BY GAINS IN NIKKEIINDEX FUTURES COOLED BY A BOND MARKET REBOUND THEN KNOCKED DOWN BY PROFITTAKING IN THE AFTERNOON WHICH LED JAPANESE INVESTORS TO SELL BOTH NIKKEI 225 AND TOPIX INDEX BASKETS THE MARKET WAS BUOYED A BIT BY A JAPANESE PARLIAMENTARY COMMITTEE'S PASSAGE THURSDAY MORNING OF THE GOVERNMENT'S POLITICAL REFORM BILL PUBLIC PENSION FUNDS SOLD SHARES IN THE EARLY AFTERNOON AND JAPANESE INSTITUTIONS SNAPPED UP THOSE STOCKS PROVIDING MOMENTUM FOR THE RUNUP THAT PROMPTED SNAGGING OF PROFITS A LATE BURST OF BUYING PUSHED THE NIKKEI UP ABOUT 100 POINTS IN THE SESSION'S FINAL MINUTES THE SECURITIES SECTOR LED THE ADVANCE WITH CONTINUING SUPPORT FROM HIGHER TRADING VOLUME WHICH REFLECTED OPTIMISM THAT THE MARKET'S RECENT BULL RUN WILL CONTINUE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 51 POINTS TO 34700 AFTER REBOUNDING FROM A 162POINT LOSS THE FT30 INDEX ROSE 50 POINTS TO 26591 THE FTSE 250 INDEX RETREATED FROM RECORD LEVELS SHEDDING 434 POINTS OR 1 TO 41054 VOLUME WAS A HEAVY 11 BILLION SHARES COMPARED WITH 132 BILLION SHARES A DAY EARLIER PROFITTAKING HIT EARLY FOLLOWING THE FT 100 GAUGE'S 100POINT GAIN IN THE PAST FOUR SESSIONS STOCKS ALSO WERE PRESSURED BY BEARISH STATEMENTS BY BRITISH COMPANIES ABOUT THEIR BUSINESS OUTLOOK BUT THE MARKET REGAINED SOME COMPOSURE LATE IN THE SESSION AS THE FOCUS RETURNED TO THE COUNTRY'S ECONOMIC FUNDAMENTALS IN FRANKFURT PRICES FELL IN A DIRECTIONLESS SESSION THE DAX 30STOCK INDEX LOST 1792 POINTS TO 211646 MANY INVESTORS WERE ON THE SIDELINES AND OTHERS SOLD POSITIONS AT PEAKS IN VOLATILITY IN PARIS STOCKS LOST GROUND FROM HEAVY SELLING IN THE MEDIA AND LUXURY RETAILING SECTORS WHICH COULD BE AFFECTED BY REPOSITIONING PLANS AND DISAPPOINTING EARNINGS IN AMSTERDAM SHARES DECLINED PARTLY BECAUSE OF A WEAKER DOLLAR IN FOREIGNEXCHANGE DEALINGS THE GERMAN DECISION TO MAINTAIN CURRENT INTERESTRATE LEVELS ADDED TO NEGATIVE SENTIMENT ON THE DUTCH BOURSE THOUGH A RATE CUT WASN'T WIDELY EXPECTED IN MILAN THE BROADEST MEASURE OF SHARES DROPPED ATTRIBUTED TO THE RETICENCE BY BOTH GERMANY AND ITALY TO REDUCE RATES IN MADRID STOCKS FELL BECAUSE OF PROFITTAKING FOLLOWING THE RECENT RALLY AND BECAUSE SENTIMENT WAS DAMPED BY THE GERMAN RATE INACTION IN STOCKHOLM PRICES DROPPED BROADLY FROM RECORD LEVELS AS HIGHER SWEDISH MONEY MARKET RATES AND UNCHANGED GERMAN LENDING RATES SPARKED A SELLING WAVE DESPITE POSITIVE ECONOMIC INDICATORS IN SYDNEY SHARES FINISHED WITH STRONG GAINS AT THEIR HIGHEST LEVEL SINCE SEPTEMBER 1987 AS FOREIGN ESPECIALLY ASIAN INVESTORS SCRAMBLED TO BUY THOUGH PROFITTAKING DID PULL PRICES DOWN TOWARD THE CLOSE THE MARKET IS UP 43 THIS YEAR IN HONG KONG SHARES GAVE UP EARLY GAINS TO FINISH WITH DEEP LOSSES NEAR THE DAY'S LOWS AFTER A 12 TOTAL GAIN IN THE PREVIOUS FOUR SESSIONS THE MARKET WAS CONSIDERED TOO HIGH FROM A TECHNICAL PERSPECTIVE WHICH SPURRED PROFITTAKING IN SINGAPORE SHARES ENDED SHARPLY LOWER WITH THE MAIN INDEX'S 19 DROP EXAGGERATED BY THIN DEALINGS IN KUALA LUMPUR PRICES DIVED 29 IN BRISK TRADING EXTENDING THE PREVIOUS DAY'S SLIDE IN TAIPEI EQUITIES FELL 17 IN A CONTINUING BROAD CONSOLIDATION IN SEOUL STOCKS FELL AFTER SWINGING WIDELY AMID UNSUBSTANTIATED RUMORS INCLUDING ANOTHER SOUTH KOREAN GOVERNMENT INTERVENTION TO CURB SPECULATIVE INVESTMENT FERVOR AND IN BANGKOK PRICES THUDDED 42 IN CHOPPY TRADING BUT IN MANILA STOCKS ADVANCED 16 PACED BY THE TELEPHONE SECTOR AND WELLINGTON SHARES RALLIED 16 EVEN AFTER MILD PROFITTAKING IN MEXICO CITY STOCKS SOARED TO A NEW HIGH AS NERVOUSNESS ABOUT FRESH REBEL ATTACKS IN A SOUTHERN STATE SUBSIDED AND HOPES FOR A SETTLEMENT INCREASED FOREIGN INVESTORS POURED CASH INTO THE MARKET WHICH SOME ANALYSTS CONSIDER A BARGAIN IN TERMS OF SHARE PRICES IN RELATION TO ESTIMATED 1994 EARNINGS AMONG CORPORATE DEVELOPMENTS IN TOKYO HANWA FELL 100 YEN THE MAXIMUM DAILY LIMIT TO 677 YEN 608 SHARES OF THE TRADING COMPANY WHICH SPECIALIZES IN STEEL PRODUCTS HAD BEEN SUSPENDED WEDNESDAY WHEN HANWA SAID IT WOULD TAKE A SPECIAL CHARGE FOR HUGE SPECULATIVE TRADING LOSSES IN LONDON BASS SLUMPED 16 PENCE OR 26 TO 592 PENCE 884 ON A DOWNBEAT STATEMENT AT THE ANNUAL MEETING THE BREWER AND HOTEL OPERATOR SAID THAT BRITAIN'S GENTLE ECONOMIC RECOVERY IS PROVIDING LITTLE BENEFIT FOR THE COMPANY AND THAT IT MUST SEEK IMPROVEMENTS BY MANAGEMENT ACTION RATHER THAN TRADING CONDITIONS IN FRANKFURT METALLGESELLSCHAFT PLUNGED 75 MARKS OR 31 TO 23750 MARKS 13602 AFTER THE SESSION ENDED METALLGESELLSCHAFT WHICH WAS APPARENTLY RESCUED FROM A BANKRUPTCYLAW FILING LAST WEEKEND BY A 34 BILLIONMARK 19 BILLION LIQUIDITY PACKAGE UNVEILED A RESTRUCTURING PLAN TO BECOME A MANAGEMENT HOLDING CONCERN WITH OPERATIONS IN TRADING PLANT CONSTRUCTION AND CHEMICALS AND TO SHED MANY ACTIVITIES IN GERMANY AND ABROAD 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 9401210003 940121 LEISURE & ARTS OPERA BARBER'S RARE VANESSA' BY WILLARD SPIEGELMAN DALLAS WHEN SAMUEL BARBER'S VANESSA PREMIERED AT THE MET IN 1958 IT WAS ALREADY A PERIOD PIECE LAST WEEK THE DALLAS OPERA IN A COPRODUCTION WITH THE WASHINGTON OPERA GAVE THE PULITZER PRIZEWINNING WORK A NEW HEARING UNDER THE SUPERB MUSICAL DIRECTION OF STEVEN MERCURIO AND A VISUAL FACELIFT AT THE HANDS OF STAGE DIRECTOR MICHAEL KAHN AND SET DESIGNER MICHAEL YEARGAN PARADOXICALLY VANESSA NOW SEEMS BOTH MORE DATED AND MORE POWERFUL WITH A LIBRETTO BY GIAN CARLO MENOTTI BARBER'S TALE OF REPRESSION ENDURANCE AND SACRIFICE IS A DRAMATIC AND MUSICAL HODGEPODGE WHICH MUST HAVE TITILLATED AND COMFORTED ITS ORIGINAL AUDIENCE IN EQUAL MEASURE ITS PLOT REDUCES TO A FAIRYTALE NUGGET AN ABANDONED WOMAN LOCKS HERSELF INTO A 20YEAR SECLUSION BUT FINDS HAPPINESS WHEN HER FORMER LOVER'S SON COMES AND TAKES HER AWAY VANESSA LIVES IN ISOLATION WITH HER MOTHER THE OLD BARONESS WHO HAS NOT SPOKEN TO HER DAUGHTER SINCE SHE RUINED HER LIFE BY SHUTTING HERSELF OFF FROM THE WORLD AND WITH HER 20YEAROLD NIECE ERIKA WHO MYSTERIOUSLY BUT CONVENIENTLY SEEMS TO HAVE NO PARENTS OF HER OWN THE YOUNG MAN NAMED ANATOL LIKE HIS LATE FATHER COMES TO VISIT THE FABLED WOMAN HE HAS HEARD HIS FATHER SPEAK OF ON HIS FIRST NIGHT HE SEDUCES AND INEVITABLY IMPREGNATES THE NIECE BUT WHEN SHE DEMANDS TO KNOW WHETHER HE LOVES HER HE REPLIES IN THE MODERN WAY THAT HE CANNOT PROMISE ANYTHING ETERNAL IN A GESTURE OF SACRIFICE SHE ALLOWS HER ENAMORED AUNT TO MARRY ANATOL AND TO GO OFF WITH HIM TO PARIS HAVING SUCCESSFULLY ABORTED HER CHILD BY RUSHING OUT INTO THE WINTRY WEATHER ERIKA WILL REMAIN IN THE COUNTRY HOUSE TAKING HER AUNT'S PLACE IN THE DARKENING HALL NOW SHE ANNOUNCES STOICALLY IT IS MY TURN TO WAIT AS THE CURTAIN FALLS DRAMATICALLY AND MUSICALLY THE OPERA LIVES LIKE ITS HEROINE IN THE PAST SET IN A NAMELESS NORTHERN COUNTRY IN 1905 VAGUE WITH REGARD TO SPECIFICS OF CHARACTER MOTIVATION AND PLOT VANESSA ALSO RINGS WITH THE HARMONIES AND MELODIC IMPULSES OF PUCCINI AND STRAUSS THE TWO GREATEST 20THCENTURY COMPOSERS OF MUSIC FOR THE FEMALE VOICE WHATEVER ITS DRAMATIC FLAWS AND INCONSISTENCIES THE OPERA REMAINS A SINGER'S DREAM WORK WITH FAMOUS SET PIECES INCLUDING ERIKA'S FIRSTSCENE ARIA MUST THE WINTER COME SO SOON VANESSA'S GREAT GREETING TO HER MYSTERIOUS SUITOR DO NOT UTTER A WORD ANATOL AND THE OPERA'S CONCLUDING QUINTET EACH OF THE FOUR MAIN CHARACTERS GETS SEVERAL CHANCES TO SHINE INDIVIDUALLY AND IN ENSEMBLE BARBER WROTE THE TITLE ROLE WITH CALLAS IN MIND BUT THE SOPRANO SENSING THAT ERIKA WAS THE GREATER PART DECLINED AND AT THE PREMIERE THE CAST HEARD ON THE ONLY RECORDING OF THE OPERA INCLUDED ELEANOR STEBER AS VANESSA ROSALIND ELIAS AS THE NIECE NICOLAI GEDDA AS ANATOL AND GIORGIO TOZZI AS THE FATHERLY LOCAL DOCTOR STEBER SET THE STANDARD FOR ALL SUBSEQUENT PERFORMANCES IN DALLAS ASHLEY PUTNAM HAD GLAMOUR AND VOCAL POWER BUT SHE LACKED THE TENDERNESS THAT MUST BE PART OF VANESSA'S CHARACTER DICTION WAS A PROBLEM THROUGHOUT MUCH OF THE PERFORMANCE WHETHER THIS WAS DUE TO THE SINGERS THE ACOUSTICAL INEQUITIES OF DALLAS'S GROTESQUE MUSIC HALL OR TO THE OCCASIONAL LINGUISTIC PECULIARITIES OF MENOTTI'S LIBRETTO IS UNCERTAIN THANK GOODNESS FOR SUPERTITLES CALLAS WAS AS OFTEN RIGHT ERIKA CAN THREATEN TO WALK AWAY WITH THE SHOW SHE IS THE ONE CHARACTER WHO CHANGES DURING THE COURSE OF THE DRAMA THE YOUNG MEZZO MELANIE SONNENBERG CONVINCINGLY PORTRAYED ERIKA'S GROWTH FROM INGENUE TO WOUNDED WOMAN TO THE REINCARNATION OF HER AUNT WITH CONSIDERABLE PERSUASIVENESS MICHAEL REES DAVIS NO MATCH FOR NICOLAI GEDDA OFTEN MANIFESTED A STRIDENT TONE BUT IN HIS LOVE DUET WITH VANESSA MANAGED TO PERSUADE US AS WELL AS HER OF HIS PASSION VETERAN RICHARD STILWELL SANG THE OLD DOCTOR WITH TENDER MELLOWNESS SINCE ONE THEME OF THE OPERA IS HISTORICAL REPETITION IT WAS APPROPRIATE THAT ROSALIND ELIAS RETURNED TO DO THE OLD BARONESS THAT STERN SILENT WOMAN WHO SPENDS MOST OF THE OPERA SITTING IMPASSIVELY AND GLARING MENACINGLY AT HER YOUNGER RELATIVES IN SOME WAYS THE MOST IMPRESSIVE PERFORMANCE WAS THAT OF THE AMERICAN CONDUCTOR STEVEN MERCURIO WHO TRANSFORMED HIS ORCHESTRA INTO A STRONG SYMPHONIC ENSEMBLE AND BROUGHT OUT THOSE COLORS IN THE SCORE THAT MAKE IT SOUND LIKE A GREAT TONE POEM MICHAEL KAHN ARTISTIC DIRECTOR OF WASHINGTON'S SHAKESPEARE THEATRE DEVISED A PRODUCTION THAT SUCCEEDED DRAMATICALLY AT EVERY MOMENT EXCEPT ONE ERIKA UNCOVERING A PORTRAIT OF THE YOUNG BEAUTIFUL VANESSA SEEING THE PICTURE STEELS ERIKA IN HER DECISION TO CEDE ANATOL TO HER AUNT WHO HAS FOR SO LITTLE HAD TO WAIT FOR SO LONG BUT POORLY PLACED THE PICTURE WAS INVISIBLE TO HALF THE AUDIENCE WHO HAD TO GUESS AT ERIKA'S PROVOCATION FOR HER CLIMACTIC DECISION EXACTLY FOUR YEARS AGO IT LOOKED AS THOUGH THE DALLAS OPERA WAS SUFFERING FROM MORE THAN THE ECONOMIC DOLDRUMS WROUGHT IN THE LOCAL ECONOMY WITH THE RETIREMENT OF LONGTIME MUSIC DIRECTOR AND COFOUNDER NICOLA RESCIGNO THE COMPANY FOUND ITSELF MUSICALLY AS WELL AS FINANCIALLY IN THE RED TEXANS THRIVE ON ADVERSITY TODAY UNDER PLATO KARAYANIS THE OPERA IS FINANCIALLY SOLVENT AND IN THE MIDST OF AN ARTISTIC REBIRTH GRAEME JENKINS ASSUMES THE POSITION OF MUSIC DIRECTOR NEXT YEAR VANESSA COMES TOWARD THE END OF AN IMAGINATIVELY DARING SEASON FLYING DUTCHMAN ROUNDS IT OUT FROM JAN 27 TO FEB 5 THE HIGHLIGHTS OF WHICH INCLUDED CECILIA BARTOLI IN A CLEVER MAGRITTEINSPIRED STAGING OF THE THE BARBER OF SEVILLE CONDUCTED BY RICHARD BONYNGE AND FRANCESCA ZAMBELLO'S STUNNING PRODUCTION OF LEOS JANACEK'S JENUFA WITH THE RADIANTLY EXPRESSIVE RENEE FLEMING MR SPIEGELMAN WRITES ABOUT THE ARTS FROM DALLAS 9401210002 940121 ABREAST OF THE MARKET INDUSTRIALS SET ANOTHER RECORD FUELED BY BULLISH LATE TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS GOT BULLISH IN THE FINAL MINUTES OF TRADING AND PUSHED THE STOCK MARKET UP AS THE DOW JONES INDUSTRIAL AVERAGE MOVED FURTHER INTO RECORD TERRITORY STOCK PRICES HAD BEEN MIXED FOR MOST OF THE DAY BUT OBSERVERS SAID CONTINUED OPTIMISM ABOUT EARNINGS REPORTS STRONG BONDS AND GOOD ECONOMIC DATA IGNITED ACROSSTHEBOARD BUYING RIGHT BEFORE THE CLOSE THE DOW INDUSTRIALS FINISHED 759 POINTS OR 020 HIGHER AT 389196 ITS SECONDSTRAIGHT RECORD THE INDEX ALSO FINISHED AT A RECORD LEVEL MONDAY AND TIED THAT RECORD TUESDAY YESTERDAY'S ALLTIME HIGH IS THE EIGHTH RECORD FINISH THIS YEAR NEWS OF A JUMP IN DECEMBER HOUSING STARTS BOOSTED CYCLICAL ISSUES BETHLEHEM STEEL ROSE 1/4 TO 22 1/2 AND ALLIEDSIGNAL ROSE 7/8 TO 79 1/4 MEANWHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 028 POINT TO 26323 ITS SECONDCONSECUTIVE RECORD CLOSE THE STANDARD & POOR'S 500STOCK INDEX GAINED 068 POINT TO END AT 47498 BOTH INDEXES HAD SPENT MOST OF THE DAY LOWER BIG BOARD VOLUME TOTALED 3104 MILLION SHARES COMPARED WITH 3108 MILLION SHARES WEDNESDAY ADVANCING ISSUES LED DECLINING BY 1110 TO 960 THE 30YEAR TREASURY BOND WAS HIT EARLY ON BY THE ENCOURAGING ECONOMIC DATA BUT QUICKLY REVERSED COURSE AND GAINED 3/8 POINT ITS YIELD FELL TO 626 WITH THE DOW INDUSTRIALS TESTING NEW HEIGHTS EVERY DAY ANALYSTS SUGGESTED 3900 AND PERHAPS 4000 ON THE BLUE CHIP AVERAGE MAY BE WITHIN REACH OVER THE NEXT FEW WEEKS TOMORROW'S DOUBLE WITCHING SESSION COULD MAKE FOR A LITTLE VOLATILITY SOME OBSERVERS SAID THOUGH THEY AREN'T EXPECTING ANY FIREWORKS OPTIONS ON INDIVIDUAL STOCKS AND SOME STOCK INDEXES ARE DUE TO EXPIRE THE NASDAQ COMPOSITE INDEX RECOUPED WHAT IT LOST WEDNESDAYRISING 374 POINTS TO END AT A RECORD 79302 TECHNOLOGY STOCKS POWERED THE MOVE DURING BOTH SESSIONS NASDAQTRADED INTEL OF SANTA CLARA CALIF ROSE 1 1/4 TO 63 3/4 AFTER STUMBLING 4 3/4 WEDNESDAY FOLLOWING EARNINGS RESULTS THAT WERE BELOW EXPECTATIONS ALEX BROWN & SONS INC LOWERED ITS RATING ON THE CHIP MAKER TO BUY FROM STRONG BUY YESTERDAY MORNING MICROSOFT ROSE 3 TO 86 1/4 IN NASDAQ TRADING ON IMPROVED FISCAL SECONDQUARTER NET INCOME REPORTED LATE WEDNESDAY OF 95 CENTS A SHARE UP FROM 78 CENTS A YEAR EARLIER SEVERAL BROKERAGE FIRMS UPGRADED THE REDMOND WASH COMPANY'S SHARES THOUGH COWEN & CO LOWERED ITS RECOMMENDATION TO NEUTRAL FROM BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 153 TO 48481 AN ALLTIME HIGH TANDEM COMPUTERS MOVED 1 5/8 HIGHER TO 13 3/4 ON A GOOD EARNINGS REPORT APPLE COMPUTER CUPERTINO CALIF GAINED 5/8 TO 29 7/8 ON NASDAQ BUT AFTERHOURS TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEMS SHOWS THE LAST TRADE AT 31 1/8 ON SIGNIFICANT VOLUME AFTER THE MARKET CLOSED THE COMPUTER COMPANY REPORTED FISCAL FIRSTQUARTER EARNINGS OF 34 CENTS A SHARE ONE CENT ABOVE ANALYSTS' ESTIMATES THOUGH BELOW THE 133 EARNED A YEAR AGO THE COMPUTER MAKER ALSO SAID OPERATING EXPENSES FELL AND MACINTOSH PERSONALCOMPUTER SALES ROSE BUT COMPUTER ASSOCIATES INTERNATIONAL TOPPLED 3 1/2 TO 41 A 50 JUMP IN FISCAL THIRDQUARTER EARNINGS REPORTED WEDNESDAY WASN'T ENOUGH TO PLEASE INVESTORS WHO CLING TO MEMORIES OF THE PREVIOUS QUARTER'S 82 LEAP ANALYSTS SAID ELSEWHERE ON THE EARNINGS FRONT KIMBERLYCLARK SURGED 3 5/8 TO 56 1/8 THE CONSUMER PRODUCTS CONCERN SAID FOURTHQUARTER EARNINGS CAME IN AT 88 CENTS A SHARE COMPARED WITH A LOSS OF 35 CENTS ON A CHARGE A YEAR EARLIER WALL STREET EXPECTATIONS WERE FOR NET INCOME OF 79 CENTS DURING THE LATEST QUARTER BOMBAY DECLINED 2 1/2 TO 29 1/2 THE FORT WORTH TEXAS OPERATOR OF HOMEFURNISHINGS RETAIL STORES POSTED FISCAL SECONDQUARTER EARNINGS OF 40 CENTS A SHARE WHICH REFLECT A 2FOR1 STOCK SPLIT PAID DEC 31 1993 ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN 39 CENTS A SHARE AMONG NEW ISSUES PLANTRONICS ZOOMED TO 15 ABOVE ITS INITIAL OFFERING PRICE OF 1250 A SHARE LATE WEDNESDAY PLANTRONICS A DESIGNER AND MAKER OF LIGHTWEIGHT TELEPHONE HEADSETS SAID IT WILL USE PROCEEDS TO FUND A RECAPITALIZATION PLAN THAT WILL REDUCE THE COMPANY'S DEBT AND INTEREST EXPENSES AMERICAN DEPOSITARY RECEIPTS OF SOME MEXICAN STOCKS ROSE TELEFONOS DE MEXICO CLIMBED 1 5/8 TO 69 3/8 AFTER IT SAID IT WILL EXPAND ITS LINE NETWORK 12 OR ABOUT 900000 LINES THIS YEAR TO 83 MILLION LINES OTHERS GAINED GROUND AS INVESTORS DISMISSED EXPECTED REBEL ACTIVITY IN MEXICO AS A THREAT TO LATIN AMERICAN MARKETS VITRO ADDED 1 3/8 TO 24 GRUPO FINANCIERO SERFIN INCREASED 2 1/8 TO 32 1/2 GRUPO TRIBASA GAINED 1 1/4 TO 34 AND EMPRESAS ICA SOCIEDAD CONTROLADORA JUMPED 2 TO 30 CHILEAN CHEMICALFERTILIZER CONCERN SOCIEDAD QUIMICA Y MINERA ADDED 7/8 TO 31 7/8 AND ARGENTINA'S BANCO DE GALICIA EDGED UP 1/2 TO 41 1/8 IN NASDAQ TRADING BUT TRANSPORTATION STOCKS ENDED WEAK CSX FELL 2 3/8 TO 86 1/2 ON LOWER FOURTHQUARTER EARNINGS OF 146 A SHARE DOWN FROM 147 A YEAR EARLIER UNION PACIFIC DROPPED 2 1/2 TO 63 7/8 DESPITE POSTING IMPROVED FOURTHQUARTER EARNINGS TIME WARNER GAINED 7/8 TO 40 THE MEDIA GIANT SAID ITS BOARD HAS ADOPTED A SHAREHOLDERRIGHTS PLAN THAT DOES NOT PRECLUDE A BONA FIDE ALLCASH OFFER FOR ALL TIME WARNER'S OUTSTANDING STOCK BEAR STEARNS & CO RAISED ITS RATING ON TIME WARNER TO STRONG BUY FROM BUY 9401210001 940121 BUSINESS BRIEF UNION PACIFIC CORP FOURTHPERIOD NET ROSE 22 ON 3 INCREASE IN REVENUE UNION PACIFIC CORP SAID FOURTHQUARTER PROFIT JUMPED 22 DUE TO RECORD TRAFFIC LEVELS AT THE COMPANY'S RAILROAD AND TRUCKING UNITS AND STRONG SALES BY ITS NATURALRESOURCES UNIT THE BETHLEHEM PA TRANSPORTATION COMPANY SAID NET INCOME ROSE TO 235 MILLION OR 114 A SHARE FROM 192 MILLION OR 94 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 3 TO 198 BILLION THE COMPANY SAID THAT ALTHOUGH IT'S CONCERNED ABUT ENERGY PRICES RECENT MOMENTUM IN THE ECONOMY MAKES IT 'CAUTIOUSLY OPTIMISTIC ABOUT THE OUTLOOK FOR THIS YEAR FOR ALL OF 1993 NET FELL 27 TO 530 MILLION OR 258 A SHARE FROM 728 MILLION OR 357 A SHARE IN 1992 RESULTS FOR 1993 INCLUDED A 175 MILLION CHARGE FOR RETIREE BENEFITS AND A 61 MILLION ONETIME TAX ADJUSTMENT WITHOUT THOSE CHARGES THE COMPANY SAID IT WOULD HAVE EARNED 766 MILLION UP 5 FROM 1992 REVENUE FOR ALL OF 1993 ROSE 4 TO 756 BILLION 9401200182 940120 GENENTECH EARNINGS TRIPLED IN 4TH PERIOD SPARKED BY ACTIVASE SOUTH SAN FRANCISCO CALIF GENENTECH INC RIDING THE RESURGENCE OF ITS HEART ATTACK DRUG ACTIVASE SAID FOURTHQUARTER EARNINGS TRIPLED TO 187 MILLION OR 16 CENTS A SHARE FROM 62 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER THE BIOTECH COMPANY'S PERFORMANCE WHICH HIT THE HIGH END OF WALL STREET FORECASTS DID LITTLE TO STIR ITS STOCK THOUGH GENENTECH WAS QUOTED IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 5050 UP 25 CENTS REVENUE ROSE 14 TO 1615 MILLION FROM 142 MILLION FOR THE FULL YEAR GENENTECH'S PROFIT SURGED TO 589 MILLION OR 50 CENTS A SHARE FROM 208 MILLION OR 18 CENTS A SHARE REVENUE ROSE 19 TO 6497 MILLION FROM 5443 MILLION THE COMPANY CITED ACTIVASE'S 30 SALES GROWTH WHICH PROPELLED THE DRUG TO A TWOTHIRDS MARKET SHARE AFTER ITS PERFORMANCE IN A LARGE CLINICAL TRIAL BY HEART ATTACK PATIENTS LAST YEAR GENENTECH PRESIDENT G KIRK RAAB SAID HE EXPECTS PROFIT GROWTH TO CONTINUE IN 1994 AS THE COMPANY BEGINS TO REALIZE SALES FROM TWO NEW PRODUCTS RECENTLY GRANTED MARKET APPROVAL BY THE FOOD AND DRUG ADMINISTRATION PULMOZYME FOR CYSTIC FIBROSIS AND NUTROPIN FOR GROWTH PROBLEMS DUE TO KIDNEY FAILURE SEPARATELY GENENTECH SAID A FEDERAL COURT IN SAN FRANCISCO DISMISSED A LONGSTANDING PATENT LAWSUIT BY RHONEPOULENC RORER INC AGAINST GENENTECH AND ITS LICENSEE MILES INC IN A 1983 LAWSUIT RHONEPOULENC'S PREDECESSOR RORER GROUP INC CHARGED GENENTECH'S GENESPLICED VERSION OF A BLOODCLOTTING SUBSTANCE KNOWN AS FACTOR VIII VIOLATED A SCRIPPS INSTITUTE PATENT COVERING NATURAL PLASMADERIVED FACTOR VIII WHICH WAS LICENSED TO RORER THE LAWSUIT'S DISMISSAL CLEARING THE WAY FOR GENENTECH TO RECEIVE ROYALTIES ON FACTOR VIII SALES FOLLOWS A RECENTLY REPORTED SETTLEMENT OF THE DISPUTE WITH RORER AND SCRIPPS BY GENENTECH AND MILES A UNIT OF GERMANY'S FARBENFABRIKEN BAYER GMBH 9401200178 940120 AMR POSTS WIDENED FOURTHPERIOD LOSS LARGELY ON EFFECTS OF ATTENDANTS' STRIKE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP POSTED A WIDENED FOURTHQUARTER LOSS LARGELY DUE TO A FIVEDAY STRIKE BY FLIGHT ATTENDANTS AT ITS AMERICAN AIRLINES UNIT THAT WAS MORE COSTLY THAN INITIALLY FORECAST AMR SAID IT HAD A LOSS OF 253 MILLION OR 355 A SHARE COMPARED WITH A YEAREARLIER 200 MILLION OR 266 A SHARE THE STRIKE CUT AFTERTAX EARNINGS BY ABOUT 190 MILLION INSTEAD OF THE 160 MILLION AMR FORECAST WIPING OUT AMR'S PROFIT FOR THE YEAR AND RESULTING IN ITS FOURTH CONSECUTIVE ANNUAL LOSS BUT AMERICAN'S CHIEF FINANCIAL OFFICER MICHAEL J DURHAM SAID AMR IS FAIRLY OPTIMISTIC ABOUT TRENDS FOR AIRLINES IN 1994 CITING A SLIGHT STRENGTHENING IN THE ECONOMY AS WELL AS CAPACITY CUTBACKS BY THE NATION'S AIRLINES WITHOUT LOSSES FROM THE STRIKE AND OTHER SPECIAL CHARGES AMERICAN WOULD HAVE COME CLOSE TO BREAKING EVEN IN THE FOURTH QUARTER HE SAID WHILE THE COMPANY DOESN'T CONSIDER THAT SATISFACTORY HE SAID IN A BUSINESS AS CYCLICAL AS OURS BREAKEVEN IS NOT A BAD MOVEMENT IT'S A SIGNIFICANT IMPROVEMENT IN FOURTHQUARTER EARNINGS OF RECENT YEARS FOURTHQUARTER REVENUE WAS 359 BILLION UP ONLY 04 FROM A YEAREARLIER 358 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMR CLOSED AT 7125 A SHARE UP 1375 THE FINANCIAL COMMUNITY ALSO APPEARS TO BE CAUTIOUSLY UPBEAT ABOUT THE AIRLINE INDUSTRY THIS YEAR CHASE MANHATTAN BANK SAID YESTERDAY THAT IT EXPECTS THE INDUSTRY TO SHOW SIGNIFICANT IMPROVEMENT THIS YEAR FROM COSTCUTTING CAPACITY REDUCTIONS AND ROUTE REALIGNMENTS IN A PRIVATE BRIEFING TO SELECTED CLIENTS PORTIONS OF WHICH WERE RELEASED YESTERDAY CHASE SAID THE INDUSTRY SHOULD SEE OPERATING EARNINGS IN THE RANGE OF 4 BILLION TO 5 BILLION HOWEVER SOME ANALYSTS WERE MORE CAUTIOUS THAN OPTIMISTIC I DON'T THINK WE'LL SEE ANYTHING LIKE LOSSES OF THE PAST FOUR YEARS SAID VIVIAN LEE AN ANALYST WITH SMITH BARNEY SHEARSON BUT I CAN'T SIT HERE IN JANUARY AFTER AN EARTHQUAKE AND THE WORST TRAVEL WEATHER IN YEARS AND SAY WE'RE HAVING A PROFIT IN '94 BUT I CAN'T SEE WHAT ELSE CAN GO WRONG AMERICAN HAS BEEN CUTTING UNPROFITABLE ROUTES AND OPERATIONS TO SAVE MONEY AND THIS YEAR FOR THE FIRST TIME SINCE 1981 WILL HAVE LESS CAPACITY THAN IN THE PRECEDING YEAR AMERICAN WILL CUT CAPACITY OVERALL BY 48 WITH A 7 CUT IN DOMESTIC ROUTES BALANCED BY A SLIGHT INCREASE IN INTERNATIONAL FLIGHTS THE COMPANY ALSO PLANS TO LAY OFF UP TO 5000 EMPLOYEES THIS YEAR AND NEXT HOWEVER BECAUSE THE WORKERS WHO WILL REMAIN WILL HAVE GREATER SENIORITY AND THUS HIGHER PAY AMR'S SALARY AND BENEFIT COSTS PER WORKER THIS YEAR WILL JUMP 7 AMR'S EFFORTS TO CUT COSTS MAY BE AIDED SOMEWHAT BY LOWER FUEL PRICES AMERICAN PAID 8 TO 9 LESS FOR JET FUEL IN THE FOURTH QUARTER WHICH COULD TRANSLATE INTO SAVINGS THIS YEAR OF UP TO 150 MILLION IF FUEL PRICES REMAIN LOW MR DURHAM SAID AMR HAD SOME SPECIAL CHARGES IN THE FOURTH QUARTER INCLUDING 46 MILLION IN LEGAL COSTS AND FOR THE SETTLEMENT OF LITIGATION REGARDING THE SUSPENSION LAST YEAR OF ITS CONFIRM HOTELCOMPUTER RESERVATION SYSTEM CHARGES ALSO STEMMED FROM PREVIOUSLY ANNOUNCED EMPLOYEE LAYOFFS PLANNED FOR THIS YEAR TOGETHER THOSE CHARGES AMOUNTED TO 62 MILLION AFTER TAXES OR 82 CENTS A SHARE FOR THE YEAR AMR HAD A NET LOSS OF 110 MILLION OR 223 A SHARE ON REVENUE OF 1582 BILLION IN 1992 AMR'S NET LOSS WAS 935 MILLION OR 1249 A SHARE ON REVENUE OF 144 BILLION LAST YEAR'S LOSS INCLUDES A 79 MILLION AFTERTAX CHARGE FOR RETIREMENT OF AIRCRAFT AND A POSITIVE ADJUSTMENT FOR A CHANGE IN AN ESTIMATE RELATED TO PASSENGER REVENUE THE 1992 RESULTS INCLUDE THE EFFECT OF TWO ACCOUNTING CHANGES AS WELL AS A 109 MILLION AFTERTAX PROVISION RELATED TO THE SUSPENSION OF THE CONFIRM PROJECT 9401200177 940120 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 2 LOW 2 1/2 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 309 60 TO 89 DAYS 312 90 TO 119 DAYS 314 120 TO 149 DAYS 315 150 TO 179 DAYS 323 180 TO 259 DAYS 332 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 270 SIX MONTHS 296 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 302 ONE MONTH 309 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 302 60 DAYS 305 90 DAYS 308 120 DAYS 313 150 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 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 589 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 18 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 299 13 WEEKS 315 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 693 60 DAYS 7 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 690 60 DAYS 7 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9401200176 940120 CONFUCIUS SAYS REACH THE PEOPLE WHO GET SNACKS AT COMMERCIALS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL CONFUCIUS IS BRANCHING OUT OR MAYBE IT'S JUST RHONDA LASHEN OF GAHANNA OHIO WITH HER TWOYEAROLD COMPANY FORTUNATELY YOURS MS LASHEN COOKS UP FORTUNE COOKIES AND SELLS THEM TO BUSINESSES AND INDIVIDUALS THAT HOPE A NEW MARKETING GIMMICK WILL BRING FORTUNE TO THEIR CAUSE CONSIDER SCHERINGPLOUGH CORP THE COMPANY MAILED 250000 COOKIES TO PHYSICIANS TO PROMOTE AN ANTIFUNGAL DRUG THAT IS PRIMARILY USED TO TREAT ATHLETE'S FOOT JOCK ITCH AND BODY RINGWORMS CONFUCIUS SAY PATIENTS BENEFIT TWICE FROM DUALACTION LOTRISONE READS THE MESSAGE A COLUMBUS OHIO BRANCH OF BANC ONE CORP USED GREEN MINTFLAVORED COOKIES TO MARKET ITS SECURITIES AND TRUSTS ITS ENTRY WHEN IS 5 BETTER THAN 6 ASK US SAYS AMY PRATER A BANC ONE SENIOR TELLER IT GETS DULL GOING TO THE BANK EVERY DAY WE PUT THESE ON THE COUNTER LIKE LOLLIPOPS AND PEOPLE ASKED A LOT OF QUESTIONS LANE BRYANT CLOTHING STORES PASSED OUT COOKIES AT STORE ENTRANCES OFFERING KIND WORDS AND DISCOUNTS WE THINK YOU'RE SENSATIONAL SAVE 20 OFF YOUR ENTIRE PURCHASE AT LANE BRYANT COMPANIES ACCOUNTED FOR THE BULK OF MS LASHEN'S 180000 IN SALES LAST YEAR BUT SHE DID A LITTLE SOOTHSAYING ON THE SIDE FOR LOVERS WHO APPARENTLY REALLY LIKE HER PINK STRAWBERRY COOKIES FAVORITES INCLUDE THE PASSION IN YOUR MIND IS GOING TO BE MATCHED BY THE PASSION IN YOUR BODY AND HOT KISSES WILL COVER YOUR BODY SOON MS LASHEN ASSURES THAT THERE'S NOTHING XRATED SOME DOCTORS USE THE COOKIES FOR THANKYOUS A COLUMBUS UROLOGIST AMUSED COLLEAGUES WITH A COOKIE BUSINESS CARD SAYING URINE GOOD HANDS AND A NEARBY OPHTHALMOLOGIST MAILED COOKIE BOXES TO 2500 PATIENTS AND REFERRAL SOURCES AT CHRISTMAS THE FORTUNES READ CONFUCIUS SAY FOCUS ON THE NEW YEAR WITH GOOD VISION AN EAGER JOB CANDIDATE USED A GIANT CHOCOLATECOVERED COOKIE AS A FOLLOWUP AT A COLUMBUS RADIO STATION INCREASE YOUR FORTUNE HIRE DANA NAY THE LUCKY MS NAY GOT THE JOB NOT SO FORTUNATE WERE THE LOT WHO BOUGHT MS LASHEN'S LOTTERY COOKIES WHICH PROFESSED TO CONTAIN LUCKY WINNING NUMBERS NO ONE EVER WON IT'S TOO BAD SHE SAYS I WOULD'VE LIKED THAT 9401200173 940120 BUSINESS BRIEF WITCO CORP FIRM IS PLANNING TO REPORT A CHARGE OF 601 MILLION WITCO CORP SAID IT WILL POST A FOURTHQUARTER CHARGE OF 601 MILLION OR 110 A SHARE TO COVER ENVIRONMENTAL CLEANUP AND COMPLIANCE EXPECTED LOSSES FROM DISPOSING OF SOME OPERATIONS AND A 4 REDUCTION IN ITS WORK FORCE THE CHARGE WHICH TOTALS 926 MILLION BEFORE TAXES SHOULD RESULT IN A LOSS FOR THE QUARTER BUT OPERATING PROFIT AT WITCO SHOULD BE CLOSE TO MEETING ANALYSTS' ESTIMATES FOR THE QUARTER OF 40 CENTS TO 45 CENTS A SHARE OR A TOTAL OF 22 MILLION TO 248 MILLION C R SODERLIND SENIOR VICE PRESIDENT SAID THE COMPANY WHICH ESTIMATES 1993 REVENUE AT ABOUT 22 BILLION PLANS TO REPORT EARNINGS TOWARD THE END OF NEXT WEEK THE MOVES ARE PART OF A RESTRUCTURING BEGUN ABOUT A YEAR AGO BY THE NEW YORK SPECIALTYCHEMICALS CONCERN 9401200172 940120 P&G SUBSIDIARY REVISES PLAN TO BUY GERMAN COMPANY AMID CONCERNS BY EU BRUSSELS THE GERMAN UNIT OF PROCTER & GAMBLE CO REVISED ITS PLAN TO ACQUIRE GERMAN HOUSEHOLD PAPER GROUP VPSCHICKEDANZ AG AFTER THE EUROPEAN UNION COMMISSION SAID AN INITIAL PROPOSAL COULD POSE COMPETITION PROBLEMS IN THE FEMININEPROTECTION PRODUCTS MARKET A REVISED PROPOSAL SUBMITTED BY PROCTER & GAMBLE GMBH TO EU COMPETITION AUTHORITIES CALLS FOR THE SIMULTANEOUS DIVESTMENT OF VPS'S DIAPER BUSINESS AND ITS FEMININEHYGIENE BUSINESS ASSOCIATED WITH ITS BLUMIA FEMINA AND TAMPONA BRANDS AND ITS PRIVATELABEL ACTIVITY THE INITIAL PLAN SUBMITTED LAST MONTH CALLED ONLY FOR DIVESTMENT OF THE DIAPER BUSINESS OF VPS A UNIT OF GUSTAV & GRETE SCHICKEDANZ HOLDING KGAA THE DEAL FOR THE CINCINNATI CONSUMER PRODUCTS COMPANY TO ACQUIRE ALL VPS SHARES WAS BEING CONSIDERED UNDER THE FIRST STAGE OF THE EU'S MERGERINVESTIGATION PROCESS AND THE COMMISSION HADN'T YET INDICATED WHETHER IT WOULD LAUNCH A MORE DETAILED PROBE BUT CONCERNS WERE EXPRESSED TO P&G SOURCES SAID THAT THE ACQUISITION WOULD GRANT IT TOO LARGE A SHARE IN THE FEMININEPRODUCTS SECTOR SO P&G WITHDREW ITS INITIAL NOTIFICATION AND SUBMITTED THE REVISED PROPOSAL THIS WEEK THE COMMISSION FELT THAT THEY WEREN'T COMPLETELY CONFIDENT THAT THIS WOULDN'T RESTRICT COMPETITION SO WE HAVE MADE A SIGNIFICANT CHANGE IN THE PROPOSAL SAID A P&G SPOKESMAN IN BRUSSELS OTHER PRINCIPAL PLAYERS IN EUROPE'S FEMININEPROTECTION MARKET INCLUDE SCOTT PAPER CO KIMBERLYCLARK CORP AND JOHNSON & JOHNSON ALTHOUGH SEVERAL MERGERS HAVE BEEN APPROVED WITH MODIFICATIONS DURING THE INITIAL STAGE OF AN EU INVESTIGATION THE WITHDRAWAL AND RESUBMISSION OF A REVISED PROPOSAL IS RARE THE COMMISSION NOW WILL EXAMINE THE REFORMULATED DEAL ANEW 9401200171 940120 WHO'S NEWS LANDS' END INC LANDS' END INC DODGEVILLE WIS JANE M MCANDREW 39 YEARS OLD FORMERLY VICE PRESIDENT MERCHANDISING FOR THE CHILDREN'S DIVISION OF THIS CATALOG CONCERN WAS NAMED TO THE NEW POST OF VICE PRESIDENT INTERNATIONAL MERCHANDISING 9401200170 940120 INTERNATIONAL JAPAN'S HANWA CO ONCE A HIGHFLIER SLATES BIG WRITEOFF PRESIDENT QUITS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SHIGERU KITA WHO TURNED STEEL TRADER HANWA CO INTO A HIGHFINANCE COMPANY ONCE WAS AN EMBLEM OF JAPAN'S FINANCIAL MIGHT YESTERDAY HE AND HIS COMPANY BECAME A SYMBOL OF JAPAN'S FINANCIAL PLIGHT VICE PRESIDENT TAKASHI IWAMI TOLD A NEWS CONFERENCE THAT HANWA WILL WRITE OFF 120 BILLION YEN 109 BILLION IN PREVIOUSLY UNREALIZED LOSSES ON STOCK AND OTHER INVESTMENTS IN THE YEAR ENDING MARCH 31 HE ALSO SAID THAT MR KITA WAS RESIGNING AS PRESIDENT MR KITA WAS ABSENT FROM THE CONFERENCE HE WAS FEELING UNDER THE WEATHER ACCORDING TO MR IWAMI HANWA HAD HOPED THE STOCK MARKET WOULD IMPROVE ENOUGH TO RESCUE ITS INVESTMENTS MR IWAMI SAID THAT'S WHY THE COMPANY DIDN'T MENTION ITS LOOMING DISASTER WHEN IT DISCLOSED RESULTS FOR THE SIX MONTHS ENDED LAST SEPTEMBER BUT NOVEMBER'S MARKET PLUNGE MADE HANWA THROW IN THE TOWEL WE APOLOGIZE FOR THE LOSSES WE HAVE TO POST MR IWAMI SAID HIS HEAD BOWED AS HE READ FROM A STATEMENT HANWA HAS BEEN THE SUBJECT OF RUMOR AND PRESS SPECULATION FOR YEARS AND BY THE START OF THIS YEAR THE COMPANY'S STOCK HAD FALLEN TO ABOUT ONETENTH OF ITS 1990 ALLTIME HIGH OF 4460 YEN A SHARE LATE WEDNESDAY THE TOKYO STOCK EXCHANGE ANNOUNCED IT WAS LAUNCHING AN INSIDERTRADING INVESTIGATION INTO HANWA'S RECENT SHAREPRICE MOVEMENTS THE STOCK HAS BEEN ODDLY BULLISH RISING 68 TO 777 YEN A SHARE SINCE THE BEGINNING OF THE YEAR HANWA'S LONG WAIT BEFORE DEALING WITH ITS PROBLEMS IS COMMON IN JAPAN COMPANIES RESIST TAKING PAINFUL STEPS SUCH AS LAYING OFF WORKERS OR DECLARING SPECIAL LOSSES THEIR LENDERS OBLIGE LOANS AREN'T CONSIDERED DELINQUENT UNTIL SIX MONTHS WITHOUT A PAYMENT AND EVEN THEN A BANK MAY ACCEPT A TOKEN PAYMENT SO THE TROUBLED DEBT MAY RIDE ANOTHER SIX MONTHS THAT'S ONE REASON WHY WESTERN ANALYSTS IN TOKYO SAY THAT BY US ACCOUNTING STANDARDS JAPAN'S BIG BANKS HAVE BAD LOANS OF PERHAPS 30 TRILLION YEN NOT THE 15 TRILLION YEN FIGURE BANKERS HERE CITE THOUGH HANWA ANNOUNCED A BIG WRITEOFF ITS FINANCIAL PROBLEMS MAY NOT BE OVER WE STILL HAVE ANOTHER 150 BILLION YEN IN SPECIFIED STOCK FUNDS MR IWAMI SAID AS OF SEPTEMBER THESE WERE SHOWING A 40 LOSS THOSE FUNDS PROBABLY WON'T BE LIQUIDATED FOR A FEW MORE YEARS THE DECISION TO EASE THE LOSSES OVER A LONG PERIOD OF TIME RATHER THAN TAKING THE ENTIRE HIT AT ONCE IS COMMON AMONG JAPANESE COMPANIES IT MAY COST MORE THAT WAY BUT THE LONGER IT TAKES THE THEORY RUNS THE MORE A COMPANY AND ITS LENDERS CAN AVOID THE SHOCK OF A SUDDEN DEFAULT OR A BANKRUPTCY FILING SHUNTING UNWANTED ASSETS ONTO AN AFFILIATE IS ANOTHER MOVE IN THE JAPAN INC RESTRUCTURING PLAY BOOK HANWA PLANS TO RECORD A LOSS OF 472 BILLION YEN IN THE YEAR ENDING IN MARCH THE LOSS WOULD BE GREATER EXCEPT HANWA WILL EARN A PROFIT OF 65 BILLION YEN BY SELLING LAND TO A NEW SUBSIDIARY HANWA OFFICIALS ACKNOWLEDGED THAT THE SALE PRICE MAY BE MORE THAN THE PROPERTY'S ACTUAL VALUE ON JAPAN'S DEPRESSED REALESTATE MARKET MR KITA IS GONE FROM HANWA'S PRESIDENCY BUT HE WILL KEEP A HAND IN RUNNING THE FIRM HIS FAMILY FOUNDED AS AN ADVISER HE ALSO WILL BE ADVISING HIS OLDER BROTHER JIRO KITA HANWA'S TEMPORARY PRESIDENT THE ELDER MR KITA WILL EVENTUALLY BE REPLACED BY HIS SON SHUJI KITA A RECENTLY RETIRED OFFICIAL OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY 9401200168 940119 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 9401200167 940120 DIVIDEND NEWS DOW JONES & CO DOW JONES & CO INCREASED ITS QUARTERLY DIVIDEND TO 21 CENTS A SHARE FROM 20 CENTS PAYABLE MARCH 1 TO SHARES OF RECORD FEB 1 DOW JONES BASED IN NEW YORK PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9401200166 940120 CANADIAN TRADE SURPLUS OTTAWA CANADA'S MERCHANDISE TRADE SURPLUS NARROWED TO 736 MILLION CANADIAN DOLLARS US5602 MILLION IN NOVEMBER FROM C162 BILLION IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN THE SURPLUS WAS ATTRIBUTED PARTLY TO A DROP IN AUTO EXPORTS TO THE US IN NOVEMBER AS A RESULT OF TEMPORARY PLANT SHUTDOWNS 9401200165 940120 CANADA SELLS LONGTERM BONDS THE AVERAGE BID WAS 709 FOR A PRICEEQUIVALENT OF 111156 PROCEEDS OF THE ISSUE WILL BE APPLIED TOWARD THE REDEMPTION OF C26 BILLION OF GOVERNMENT BONDS MATURING FEB 1 9401200164 940120 TECHNOLOGY SOUTHERN CALIFORNIA EARTHQUAKE ENGINEERS WANT NEW BUILDINGS TO BEHAVE LIKE HUMAN BEINGS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AS LOS ANGELES PICKS UP ITS PIECES CIVIL ENGINEERS ARE WORKING ON THE NEXT GENERATION OF QUAKEPROOFING FOR BUILDINGS AND BRIDGES IN A RELATIVELY NEW APPROACH TO EARTHQUAKERESISTANCE ENGINEERING RESEARCHERS ARE DEVELOPING SYSTEMS THAT WOULD ALLOW A STRUCTURE TO REACT TO THE FORCE OF A QUAKE VERY MUCH AS A HUMAN WOULD THE STRUCTURE WOULD INSTANTLY YIELD TO THE FORCE BUT ONLY SO MUCH BEFORE MUSTERING STRENGTH TO PUSH BACK THESE ACTIVE TECHNOLOGIES ARE DIFFERENT FROM THE PASSIVE QUAKERESISTANT SYSTEMS USED SINCE THE 1971 EARTHQUAKE IN CALIFORNIA'S SAN FERNANDO VALLEY THE PASSIVE SYSTEMS INCLUDE SPECIALLY ENGINEERED CONNECTING JOINTS REINFORCED SUPPORTS AND ISOLATION MECHANISMS THAT ABSORB THE ENERGY OF A QUAKE'S VIBRATIONS PASSIVE SYSTEMS DO IN FACT MINIMIZE DAMAGE RESEARCHERS POINT TO THE 1989 QUAKE IN SAN FRANCISCO AND TO MONDAY'S IN LOS ANGELES TO ILLUSTRATE HOW BUILDINGS AND BRIDGES BUILT OR RETROFITTED WITH THESE MECHANISMS HELD UP WELL COMPARED WITH THOSE THAT DIDN'T HAVE THEM STILL THE PASSIVE SYSTEMS ARE DESIGNED TO MAKE STRUCTURES SIMPLY TOLERATE THE BLOWS OF AN EARTHQUAKE WE ARE NO LONGER LOOKING AT BUILDINGS AS PASSIVE STRUCTURES THEY SHOULD HAVE SOME RESPONSIVENESS SAYS TSU SOONG PROFESSOR OF CIVIL ENGINEERING AT THE STATE UNIVERSITY OF NEW YORK IN BUFFALO WHICH IS THE HEADQUARTERS FOR THE NATIONAL CENTER FOR EARTHQUAKE RESEARCH MAJOR EARTHQUAKE ENGINEERINGRESEARCH CENTERS AT SUNY BUFFALO ON THE EAST COAST AND CALIFORNIA INSTITUTE OF TECHNOLOGY IN PASADENA ON THE WEST ARE PURSUING SEVERAL APPROACHES TO MAKING STRUCTURES PLAY AN ACTIVE ROLE IN AN EARTHQUAKE ONE APPROACH INCLUDES THE USE OF AUTOMATIC HYDRAULIC SYSTEMS AND STEEL TENSION WIRES TO PRODUCE REPELLING FORCES IN ANOTHER A HEAVY WEIGHT STRATEGICALLY LOCATED ON A STRUCTURE IS MANIPULATED BY A COMPUTERCONTROLLED SYSTEM TO COUNTERBALANCE THE STRUCTURE AGAINST THE JOLTS OF AN EARTHQUAKE ENGINEERS ARE ALSO TESTING FLUIDS THAT CHANGE THEIR MECHANICAL PROPERTIES TO COUNTER THE QUAKE FORCES MOST OF THESE TECHNOLOGIES ARE STILL IN THE DEVELOPMENT STAGE IN THE US BUT SOME HAVE BEEN INSTALLED IN SEVERAL BUILDINGS IN JAPAN WHICH HAS INSTALLED MORE EARTHQUAKERESISTANT DEVICES THAN ANY OTHER COUNTRY ALTHOUGH THESE ACTIVE SYSTEMS ARE CONSIDERABLY MORE EXPENSIVE THAN PASSIVE TECHNOLOGIES THEY OFFER SIGNIFICANTLY BETTER PROTECTION AGAINST EARTHQUAKES MAKING THEM A SYSTEM OF CHOICE IN IMPORTANT BRIDGES NATURALGAS PIPELINES AND OTHER STRATEGIC STRUCTURES RESEARCHERS SAY ROBERT HANSON PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY OF MICHIGAN SAYS THAT SOME OF THESE ACTIVE SYSTEMS CAN HELP STRUCTURES WITHSTAND THE MOST SEVERE OF EARTHQUAKES AS DESTRUCTIVE AS 82 ON THE RICHTER SCALE MONDAY'S EARTHQUAKE IN LOS ANGELES MEASURED 66 ON THE SCALE SUNY BUFFALO'S RESEARCH INCLUDES A TECHNOLOGY THAT USES HYDRAULIC SYSTEMS AND SPECIAL BRACES TO GENERATE FORCES TO OPPOSE THOSE IMPARTED BY A QUAKE STEEL BRACES AND PISTONS OR ACTUATORS ARE LOCATED INSIDE THE WALLS IN THE LOWER PART OF THE STRUCTURE PUMPS AND OTHER PARTS OF THE HYDRAULIC SYSTEMS ARE LOCATED IN THE BASE OF THE BUILDING SPECIAL SENSORS MOUNTED ON DIFFERENT FLOORS MEASURE VIBRATIONS CAUSED BY THE QUAKE AND RELAY THE INFORMATION TO A COMPUTER THE COMPUTER THEN CALCULATES THE NECESSARY OPPOSING FORCES AND TRIGGERS MOVEMENTS OF THE PISTONS TO APPLY THEM RESEARCHERS ARE USING THE SAME PRINCIPLE IN ANOTHER MECHANISM IN WHICH A MASSIVE WEIGHT ATOP THE STRUCTURE REPLACES THE HYDRAULIC SYSTEM AND PISTONS THE WEIGHT USUALLY ABOUT 1 TO 2 OF THE WEIGHT OF THE BUILDING MOVES IN RESPONSE TO COMPUTER COMMANDS GENERATING COUNTERFORCES ON THE STRUCTURE THE MOTION OF THE WEIGHT IS COMPLETELY AUTOMATIC PROF SOONG SAYS HE SAYS CHOICE OF THE WEIGHT SYSTEM OR THE HYDRAULIC ACTUATORS WILL DEPEND ON THE AVAILABLE SPACE AND NATURE OF THE STRUCTURE AT THE UNIVERSITY OF MICHIGAN PROF HANSON'S GROUP IS WORKING ON AN ACTIVE SYSTEM THAT DOESN'T DEPLOY MANY MOVING PARTS THE KEY TO THE TECHNOLOGY IS A FLUID A MIXTURE OF MINERAL OIL AND ALUMINUM OXIDE WHEN ELECTRICITY IS PASSED THROUGH THE FLUID ITS MECHANICAL PROPERTY CHANGES IT TURNS VISCOUS THE HIGHER THE VOLTAGE THE GREATER THE VISCOSITY THE CHANGE IS SIMILAR TO MILK TURNING INTO COTTAGE CHEESE PROF HANSON SAYS THE FLUID DEVICE IS PLACED BETWEEN THE STRUCTURE AND ITS BASE BY INCREASING ITS VISCOSITY WHEN CURRENT IS AUTOMATICALLY TRANSMITTED BY THE VIBRATIONS FROM AN EARTHQUAKE THE FLUID ALLOWS THE STRUCTURE TO FIX ITSELF TO THE BASE BY LOWERING ITS VISCOSITY THE FLUID ALLOWS THE STRUCTURE TO FREE ITSELF IF THE QUAKE WANTS TO PUT THE STRUCTURE IN MOTION YOU WANT TO FREE IT FROM THE BASE DR HANSON SAYS THEN WHEN THE BUILDING IS SETTLING BACK ON THE GROUND YOU WANT IT TO BE REFIXED TO THE BASE SO THAT IT TRANSMITS THE QUAKE ENERGY BACK INTO THE GROUND HE EXPLAINS SINCE THE STRUCTURE WOULDN'T TAKE ONE BIG BLOW SUDDENLY BUT INSTEAD WOULD SLOWLY YIELD DAMAGE CAN BE MINIMIZED AND EVEN ELIMINATED HE SAYS THE USE OF SUCH SMART MATERIAL IN BRIDGES IS THE SUBJECT OF RESEARCH AT THE UNIVERSITY OF NEVADA IN RENO SAIID SAIIDI PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY SAYS CERTAIN VISCOUS MATERIALS THAT CHANGE THEIR MECHANICAL PROPERTIES HAVE DEMONSTRATED THAT THEY CAN ABSORB A GREAT DEAL OF ENERGY HE SAYS SUCH MATERIALS CAN ALLOW BRIDGES TO SWAY WITHOUT COLLAPSING HOWEVER THE TECHNOLOGY IS STILL THREE TO FOUR YEARS AWAY FROM APPLICATION THE PROFESSOR SAYS THE EARTHQUAKERESISTANT TECHNOLOGIES HAVE COME A LONG WAY IN THE LAST 40 YEARS IN THE 1930S THE PREVAILING ENGINEERING PRONOUNCEMENT WAS THAT NOTHING CAN BE DONE ABOUT EARTHQUAKES SAYS THEODOR KRAUTHAMMER PROFESSOR OF CIVIL ENGINEERING AT PENNSYLVANIA STATE UNIVERSITY THAT VIEW CHANGED AFTER WORLD WAR II WHEN MONEY BECAME AVAILABLE FOR NEW RESEARCH AND WHEN SEISMOLOGY AND STRUCTURAL ENGINEERING BEGAN TO GET SOME ATTENTION BECAUSE EARTHQUAKES KEPT COMING BACK HE SAYS INDEED PRACTICALLY EVERY CIVIL ENGINEER RESEARCHING EARTHQUAKEPROOF DESIGNS IS IN LOS ANGELES THIS WEEK SURVEYING RUINS AS WELL AS STRUCTURES THAT HELD UP WELL IN THE QUAKE FOR CLUES TO BETTER ENGINEERING MEANWHILE NEW SEISMOLOGICAL STUDIES ARE UNDER WAY THAT WOULD HELP ENGINEERS PERFECT THE SYSTEMS THEY ARE DEVELOPING IN DECEMBER 1993 CIVIL ENGINEERS AND COMPUTER SCIENTISTS AT CARNEGIE MELLON UNIVERSITY IN PITTSBURGH RECEIVED A 215 MILLION GRANT FROM THE NATIONAL SCIENCE FOUNDATION TO DEVELOP MODELS OF HOW THE GROUND MOVES DURING AN EARTHQUAKE THE GOAL SAYS JACOBO BIELAK A PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY IS TO USE THE MODELS TO DETERMINE HOW STRUCTURES CAN BE MADE SAFER IN AN EARTHQUAKE 9401200163 940120 TECHNOLOGY HHS SECRETARY SAYS COMPUTER WILL SAVE MEDICARE PLAN MONEY WASHINGTON A NEW 19 MILLION COMPUTER SYSTEM IS EXPECTED TO IMPROVE MEDICARE SERVICE AND EVENTUALLY SAVE THE FEDERAL PROGRAM MORE THAN 200 MILLION A YEAR IN ADMINISTRATIVE COSTS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ANNOUNCED THE MEDICARE TRANSACTION SYSTEM IS TO BEGIN OPERATING IN LATE 1996 AND BE FULLY PHASED IN BY 1998 WHEN FULLY PHASED IN DATA REGARDING ELIGIBILITY OTHER INSURANCE COVERAGE AND PRIOR CLAIMS WILL BE AVAILABLE TO HEALTHCARE PROVIDERS INSTANTANEOUSLY MS SHALALA SAID MEDICARE IS THE FEDERAL HEALTHCARE INSURANCE PROGRAM FOR THE ELDERLY AND THE DISABLED AND SERVES 36 MILLION BENEFICIARIES GTE GOVERNMENT SYSTEMS CORP OF CHANTILLY VA A UNIT OF GTE CORP WAS AWARDED A SIXYEAR CONTRACT TO DESIGN AND DEVELOP THE NEW SYSTEM MS SHALALA SAID AT A NEWS CONFERENCE UNDER THE NEW SYSTEM MEDICARE RECIPIENTS WOULD PRESENT A MEDICARE CARD FOR THEIR CARE THE CARD WOULD ALLOW A DOCTOR TO ELECTRONICALLY SUBMIT THE CLAIM TO MEDICARE AND BE PAID AUTOMATICALLY MS SHALALA SAID MEDICARE BENEFICIARIES WILL RECEIVE A COPY OF THEIR BILL AND A CENTRAL NUMBER TO CALL FOR QUESTIONS IN ADDITION A PATIENT'S MEDIGAP INSURER WOULD BE BILLED INSTANTANEOUSLY AS WELL MEDIGAP POLICIES COVER MEDICAL COSTS NOT COVERED BY MEDICARE BRUCE VLADECK ADMINISTRATOR OF THE HEALTH CARE FINANCING ADMINISTRATION SAID THE NEW COMPUTER NETWORK ALSO MAY HELP FEDERAL OFFICIALS DETECT FRAUD AND ABUSE IN THE MEDICARE SYSTEM CURRENTLY 79 DIFFERENT CONTRACTORS ACROSS THE COUNTRY USE 14 DIFFERENT PROCESSING SYSTEMS AT 62 DIFFERENT LOCATIONS TO PROCESS MEDICARE CLAIMS ONCE THE NEW SYSTEM IS IN FULL OPERATION THOSE CONTRACTORS WILL FOCUS ON OTHER ISSUES WITH MEDICARE RECIPIENTS SUCH AS CUSTOMER SERVICE MS SHALALA SAID 9401200162 940120 INTERNATIONAL CADBURY TO BUY FRENCH FIRM LONDON BRITISH FOOD AND BEVERAGE CONCERN CADBURY SCHWEPPES PLC SAID IT'S BUYING BOUQUET D'OR OF FRANCE A SPECIALTYCHOCOLATES COMPANY CADBURY SAID IT WILL PAY 18 MILLION 269 MILLION INCLUDING ACQUIRED DEBT SUBJECT TO ADJUSTMENT BASED ON THE COMPLETION BALANCE SHEET CADBURY WILL PAY IN CASH CADBURY SAID THAT BOUQUET D'OR'S SALES FOR THE YEAR TO APRIL 30 1993 WERE 29 MILLION CADBURY SAID THAT THE MANAGEMENT OF CHOCOLAT POULAIN ITS ESTABLISHED CONFECTIONARY BUSINESS IN FRANCE WILL MANAGE AND DEVELOP THE BOUQUET D'OR BUSINESS 9401200161 940120 FREEPORTMCMORAN COPPER NEW ORLEANS LA FREEPORTMCMORAN COPPER & GOLD INC SAID IT REDEEMED 1186 MILLION IN LIQUID YIELD OPTION NOTES OUTSTANDING DUE 2001 THE MINING CONCERN SAID 1183 MILLION OF THE NOTES WERE CONVERTED INTO 6695444 SHARES OF ITS CLASS A COMMON STOCK AND THE BALANCE OF THE NOTES WERE REDEEMED FOR CASH THE COMPANY IS AN AFFILIATE OF FREEPORTMCMORAN INC 9401200160 940120 CANADA WAGE PACTS GIVE RAISES OTTAWA MAJOR CANADIAN WAGE SETTLEMENTS REACHED IN NOVEMBER PROVIDED INCREASES AVERAGING 01 ANNUALLY THE FEDERAL LABOR DEPARTMENT SAID THE FIGURE WAS THE SMALLEST RECORDED SINCE 1978 WHEN THE LABOR DEPARTMENT BEGAN COLLECTING THE DATA MORE THAN 90 OF EMPLOYEES COVERED BY THE NOVEMBER SETTLEMENTS WERE SUBJECT TO WAGE FREEZES SETTLEMENTS IN OCTOBER PROVIDED AN AVERAGE ANNUAL INCREASE OF 23 AND SEPTEMBER SETTLEMENTS PROVIDED FOR AN AVERAGE 02 INCREASE 9401200159 940120 DIVIDEND NEWS REPUBLIC NEW YORK CORP REPUBLIC NEW YORK CORP NEW YORK RAISED ITS QUARTERLY DIVIDEND 22 TO 33 CENTS A SHARE FROM 27 CENTS A SHARE PAYABLE APRIL 1 TO SHARES OF RECORD MARCH 15 THE BANKING COMPANY SAID FOURTHQUARTER NET INCOME ROSE 20 TO 799 MILLION OR 138 A SHARE FROM A YEAREARLIER 668 MILLION OR 114 A SHARE THE PROVISION FOR LOAN LOSSES WAS 15 MILLION IN THE FOURTH QUARTER COMPARED WITH 35 MILLION A YEAR EARLIER TOTAL ASSETS AT YEAR'S END ROSE TO 3949 BILLION FROM A YEAREARLIER 3715 BILLION REPUBLIC REAFFIRMED ITS INTENTION TO PURCHASE UP TO 500000 OF THE COMPANY'S COMMON SHARES TO LESSEN THE EFFECT ON PERSHARE EARNINGS OF CHARGES FOR EMPLOYEEBENEFIT PLANS 9401200158 940120 BELFAST CITY COUNCIL UTTERLY POINTLESS HAS DEBATES THAT STING IT IS CATHOLIC VS PROTESTANT ALL OTHER ISSUES ASIDE SPEECHIFYING FOR THE PRESS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL BELFAST NORTHERN IRELAND IN THE GOTHIC CHAMBER OF THE BELFAST CITY COUNCIL MARIE MOORE INTRODUCES A MOTION STRESSING THE IMPORTANCE OF ADEQUATE HEALTH CARE ANYWHERE ELSE NO POLITICIAN WITH A LICK OF SENSE WOULD OPPOSE SUCH A PROPOSITION BUT WHAT GOVERNS OTHERS DOESN'T APPLY IN BELFAST ELECTED OFFICIALS ELSEWHERE MIGHT CALL ONE ANOTHER COLLEAGUE SIR OR MADAM BUT HERE THEY OFTEN REFER TO THEIR FELLOWS AS SCUM OTHER COUNCILS OVERSEE POLICE BUT HERE LEST FISTFIGHTS BREAK OUT POLICE OVERSEE THE COUNCIL AND AS TO THE MERITS OF LEGISLATION HERE THE GREATER ISSUE IS WHICH TRIBE PROPOSED IT CATHOLIC OR PROTESTANT INDEED AT THIS MOMENT AND ON THEIR SIDE OF THE CHAMBER PROTESTANTS ARE OUTRAGED THAT IS BECAUSE THE SPONSOR OF THE HEALTHCARE MOTION IS MRS MOORE WHO BELONGS TO SINN FEIN POLITICAL PARTY OF THE OUTLAWED IRISH REPUBLICAN ARMY NOTING THAT IRA VIOLENCE TAXES CITY HEALTHCARE FACILITIES PROTESTANT COUNCILOR SAMMY WILSON RISES TO CRY FOUL JABBING A FINGER AT THE CATHOLIC SIDE HE SAYS YOU CAN PLEAD ALL YOU WANT BUT YOU WON'T FIND READY EARS OR WEAK MINDS SUPPORTING YOUR HYPOCRISY CATHOLICS WHO ARE OUTNUMBERED 26 TO 19 BECAUSE OF NORTHERN IRELAND'S PROTESTANT MAJORITY SNEER SCENES OF THIS KIND DON'T BODE WELL FOR THE CURRENT EFFORT TO BRING PEACE TO NORTHERN IRELAND IN A CITY WHERE TERROR GANGS ARE MURDERING PEOPLE ON A DAILY BASIS AN EXAMPLE SHOULD BE SHOWN BY THE PEOPLE ON THE CITY COUNCIL SAYS SEAMUS LYNCH A MEMBER UNTIL LAST MAY INSTEAD HE SAYS IT'S MEDIEVAL POLITICS WITH EVEN CHILDREN IN THE STREETS TELLING STORIES ABOUT CITY COUNCILORS KICKING PUNCHING AND SHOVING EACH OTHER CERTAIN MOMENTS IN COUNCIL HISTORY ARE NOTORIOUS A PROTESTANT COUNCILOR ONCE SPRAYED INSECTICIDE AT CATHOLICS A CATHOLIC COUNCILOR ASSAULTED A POLICEMAN WHO WAS TRYING TO BREAK UP A FIGHT A PROTESTANT COUNCILOR BLEW A TRUMPET TO KEEP A CATHOLIC FROM BEING HEARD SOME CATHOLIC VISITORS HURLED PROTEST LEAFLETS AND SHOUTED OBSCENITIES FROM THE PUBLIC GALLERY PRECIPITATING A MELEE BETWEEN THEMSELVES AND PROTESTANT COUNCILORS MR LYNCH SOLE REPRESENTATIVE OF THE NONSECTARIAN WORKERS PARTY UNTIL HE LOST LAST MAY'S ELECTION SAYS HIS MOST VIVID IMAGE AFTER 12 YEARS ON THE COUNCIL IS THAT OF A SINN FEIN COUNCILOR STANDING AMID A MOB OF 20 BRAWLING COUNCILORS A CHAIR RAISED OVER HIS HEAD PREPARED TO COME DOWN ON SOMEONE SUCH DUSTUPS ARISE PARTLY FROM A SHORTAGE OF LEGITIMATE BUSINESS TO CONDUCT THE DEBATE OVER THE HEALTHCARE MOTION FOR INSTANCE IS UTTERLY IRRELEVANT BECAUSE THE BELFAST CITY COUNCIL HAS NO SAY ABOUT HEALTH CARE JUST AS IT HAS NO SAY ABOUT OTHER ISSUES INCLUDING HOUSING LAW ENFORCEMENT AND EDUCATION THAT TYPICALLY ARE THE PROVINCE OF LOCAL GOVERNMENTS IN THE INTEREST OF KEEPING PEACE BRITAIN IN 1972 BEGAN DICTATING VIRTUALLY ALL ASPECTS OF LOCAL RULE FROM LONDON WHAT REMAINS OF LOCAL GOVERNMENT HERE ISN'T A DEMOCRACY SAY CRITICS IN BOTH CAMPS WE CAN'T EVEN FILL POTHOLES IN OUR STREETS OR TRIM WEEDS FROM FOOTPATHS GRUMBLES PROTESTANT COUNCILOR JIM KIRKPATRICK CALLING IT AN INSULT TO THE INTELLIGENCE OF CATHOLICS AND PROTESTANTS ALIKE TO LIMIT THE COUNCIL TO REMOVAL OF TRASH AND BURIAL OF THE DEAD BY ALL ACCOUNTS THE COUNCIL DOES A FINE JOB OF TENDING WHAT RESPONSIBILITIES IT HAS CEMETERIES TRASH AND PARKS BUT THESE DUTIES HARDLY KEEP THE COUNCIL BUSY IT MEETS JUST ONCE A MONTH AND EVEN THEN ITS MEETINGS SOMETIMES ADJOURN WITHIN FIVE MINUTES FOR LACK OF BUSINESS TO CONDUCT THAT IS AN ESPECIALLY GOOD QUESTION CONSIDERING THE PAY ABOUT 100 A MONTH AND THE RISKS CATHOLIC TERRORISTS HAVE SHOT AND WOUNDED SUCH PROTESTANT COUNCILORS AS BILLY DICKSON AND SAMMY MILLAR WHILE PROTESTANT TERRORISTS HAVE ATTACKED THE HOMES OF SEVERAL CATHOLIC COUNCILORS IN ONE CASE KILLING A VISITOR AND IN ANOTHER KILLING A COUNCILOR'S 21YEAROLD SON DESPITE ALL THAT BELFAST CITY COUNCIL RACES ARE HOTLY CONTESTED VOTER TURNOUT SLIGHTLY EXCEEDS THE UK AVERAGE AND THERE ARE HARD FEELINGS WHENEVER A SEAT SHIFTS FROM ONE PARTY TO ANOTHER WHEN SINN FEIN WON A LONGTIME OPPOSITION SEAT IN 1991 FOR INSTANCE PROTESTANT COUNCILOR SAMMY WILSON CALLED THE WINNING VOTERS 5000 SUBHUMAN ANIMALS FOR EXTREMISTS IN BOTH CAMPS A SEAT ON THE COUNCIL REPRESENTS A PLATFORM NOT FOR RUNNING THE CITY BUT FOR SPEECHIFYING ON NORTHERN IRELAND POLITICS A LOT OF WHAT THEY DO IS FOR THE BENEFIT OF US HACKS SAYS JIM MCDOWELL AUTHOR OF A LONGRUNNING CITYHALL COLUMN CALLED THE DOME OF DELIGHT SOME PROTESTANT COUNCILORS TAKE EVERY OPPORTUNITY TO CONDEMN THEIR SINN FEIN COUNTERPARTS FOR CONDONING IRA VIOLENCE ONCE PROTESTANT COUNCILORS EVEN PASSED A LAW LATER OVERTURNED BY THE COURTS PROHIBITING SINN FEIN COUNCIL MEMBERS FROM ATTENDING CIVIC FUNCTIONS AT CITY HALL PROTESTANT COUNCILORS ALSO TAKE EVERY OPPORTUNITY TO BASH THE CATHOLIC DREAM OF A UNITED IRELAND THEY PASSED ONE LAW BANNING IRISH PRESIDENT MARY ROBINSON FROM SETTING FOOT IN BELFAST CITY HALL AND ANOTHER BANNING USE OF THE IRISH LANGUAGE IN CITY HALL WHEN CATHOLIC MEMBERS SUBSEQUENTLY PROPOSED LIFTING THE LANGUAGE BAN PROTESTANT MEMBERS NOT ONLY REAFFIRMED IT BUT PASSED A MOTION EXPRESSING AN OFFICIAL INTEREST IN CHINESE HINDI AND THE VARIOUS LANGUAGES OF THE INDIAN SUBCONTINENT FOR THEIR PART SINN FEIN COUNCILORS ROUTINELY DECLINE TO VOTE FOR MOTIONS EXPRESSING SYMPATHY FOR INNOCENT VICTIMS OF IRA VIOLENCE THEY CHALLENGE NEARLY EVERY COUNCIL EXPENDITURE AS EXTRAVAGANT AND PROFESS TO SEE BIAS AGAINST CATHOLICS IN VIRTUALLY EVERY ACTION THE COUNCIL TAKES STILL SOME SEE REASON FOR OPTIMISM IN LAST MAY'S ELECTION SEVERAL OF THE MOST RADICAL PROTESTANTS GOT REPLACED BY MOREMODERATE NEWCOMERS AND INCREASINGLY MEMBERS OF THE CATHOLIC SOCIAL DEMOCRATIC LABOR PARTY ARE LOUDLY CONDEMNING SINN FEIN CATHOLICS FOR REFUSING TO EMBRACE THE CAMPAIGN FOR PEACE FOLLOWING THIS MONTH'S MEETING ABOUT TWO DOZEN COUNCILORS CHEERFULLY CONGREGATED IN THE MAYOR'S OFFICE FOR THE TRADITIONAL POSTBUSINESS ROUND OF DRINKS WE'RE ALL GETTING ALONG BETTER SAID PROTESTANT COUNCILOR SANDY BLAIR WHEN ASKED HOW MANY GATHERED HERE ARE CATHOLIC HOWEVER HE HAD TO STUDY THE CROWD THERE'S ONE HE SAID POINTING HIS PINT OF ALE 9401200157 940120 LAW HIGH COURT MAKES IT HARDER TO EXCLUDE UNIONS FROM NONUNION MINE INSPECTIONS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT HARDER FOR MINING COMPANIES TO EXCLUDE UNION REPRESENTATIVES FROM SAFETY INSPECTIONS AT NONUNION MINES THE UNANIMOUS DECISION WAS A PROCEDURAL VICTORY FOR THE UNITED MINE WORKERS AND THE CLINTON ADMINISTRATION WHICH SUPPORTED THE UNION POSITION BEFORE THE SUPREME COURT THE CASE AROSE WHEN A WYOMING MINING COMPANY WHOSE 500 EMPLOYEES WEREN'T UNION MEMBERS OBJECTED TO THE PARTICIPATION IN 1990 OF TWO UMW REPRESENTATIVES IN FEDERALLY MANDATED SAFETY INSPECTIONS THE FEDERAL MINESAFETY LAW ALLOWS WORKERS TO BE REPRESENTED DURING GOVERNMENT INSPECTIONS AND THE EMPLOYEES IN THIS INSTANCE PROPOSED THE UMW OFFICIALS THE FIRM THUNDER BASIN COAL CO COUNTERED THAT IT HAD A RIGHT UNDER US LABOR LAW TO EXCLUDE UNION ORGANIZERS FROM ITS PROPERTY GIVING THE UNION OFFICIALS ACCESS TO WORKERS AND RECORDS WOULD PROVIDE THE UMW WITH AN UNFAIR ADVANTAGE IN FUTURE ORGANIZING EFFORTS THE COMPANY COMPLAINED THUNDER BASIN A UNIT OF ATLANTIC RICHFIELD CO SAID THAT FEDERAL REGULATORS WHO BACKED THE WORKERS TRIED TO DENY THE COMPANY ITS LEGAL RIGHTS BY THREATENING TO IMPOSE FINES THE COMPANY FILED A LAWSUIT IN FEDERAL COURT AND PERSUADED A JUDGE TO BLOCK THE UNION INVOLVEMENT BUT THE FEDERAL APPEALS COURT IN DENVER REVERSED THAT RULING SAYING THE MINESAFETY ACT PRECLUDED THUNDER BASIN FROM GOING TO COURT AT SUCH AN EARLY STAGE IN THE DISPUTE THE SUPREME COURT AFFIRMED THAT DECISION THUNDER BASIN SHOULD HAVE FIRST FILED A PROTEST WITH AN ADMINISTRATIVE BODY THE FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION THE HIGH COURT SAID IF THUNDER BASIN LOST BEFORE THE COMMISSION IT COULD THEN TAKE THE CASE DIRECTLY TO A FEDERAL APPEALS COURT AMENDMENTS ENACTED IN 1977 TO THE MINESAFETY STATUTE WERE INTENDED TO STREAMLINE ENFORCEMENT AND PREVENT COMPANIES FROM USING LITIGATION TO DELAY NEEDED IMPROVEMENTS THE HIGH COURT DETERMINED JUSTICE HARRY BLACKMUN WROTE THE MAIN OPINION JUSTICES ANTONIN SCALIA AND CLARENCE THOMAS AGREED WITH THE RESULT BUT NOT ALL OF THE MAIN OPINION'S REASONING THE HIGH COURT UPHELD THE CONGRESSIONALLY ESTABLISHED METHOD FOR SELECTING MILITARY JUDGES WHICH TWO CONVICTED MARINES HAD CHALLENGED AS UNCONSTITUTIONAL THE JUSTICES UNANIMOUSLY CONCLUDED THAT EXISTING SELECTION PRACTICES COMPLY WITH CONSTITUTIONAL REQUIREMENTS FOR FEDERAL APPOINTMENTS AND DON'T VIOLATE THE DUEPROCESS RIGHTS OF SERVICE MEMBERS AMONG THE CONTENTIONS THE SUPREME COURT REJECTED WAS THE CLAIM THAT BECAUSE MILITARY JUDGES AREN'T APPOINTED FOR LIFE OR FOR FIXED TERMS THEY LACK THE INDEPENDENCE NEEDED TO ENSURE IMPARTIALITY THE COURT STRESSED THAT TEMPORARY APPOINTMENTS ARE PART OF THE MILITARY JUSTICE TRADITION A FACT THAT IN ITSELF SUGGESTS THE ABSENCE OF A FUNDAMENTAL FAIRNESS PROBLEM IN ANY CASE CHIEF JUSTICE WILLIAM REHNQUIST WROTE ON BEHALF OF THE COURT THE JUDICIARY GENERALLY SHOULDN'T SECONDGUESS CONGRESSIONAL DECISIONS ON HOW TO ORGANIZE THE MILITARY ONE OF THE MORE STRIKING ASPECTS OF THE DECISION WAS A BRIEF CONCURRING OPINION IN WHICH JUSTICE RUTH BADER GINSBURG SAID THAT THE CARE THE COURT HAS TAKEN TO ANALYZE THE TWO MARINES' CLAIMS DEMONSTRATES ONCE AGAIN THAT MEN AND WOMEN IN THE ARMED FORCES DO NOT LEAVE CONSTITUTIONAL SAFEGUARDS AND JUDICIAL PROTECTION BEHIND WHEN THEY ENTER MILITARY SERVICE SEEMINGLY AT ODDS WITH THE THRUST OF THE REHNQUIST OPINION JUSTICE GINSBURG'S COMMENT APPEARED TO ENCOURAGE CHALLENGES TO OTHER ALLEGEDLY UNCONSTITUTIONAL CONDITIONS OF MILITARY LIFE SUCH AS THE BAN ON GAYS THAT IS CURRENTLY IN LITIGATION IN THE LOWER FEDERAL COURTS WEISS VS US 9401200156 940120 MITCHELL ENERGY REDEMPTION THE WOODLANDS TEXAS MITCHELL ENERGY & DEVELOPMENT CORP SAID IT WILL REDEEM ITS 200 MILLION AGGREGATE PRINCIPAL AMOUNT OF 1125 SENIOR NOTES DUE 1999 WITH THE PROCEEDS FROM ITS OFFERING OF 250 MILLION OF 675 SENIOR NOTES MITCHELL SAID IT WILL CALL FOR REDEMPTION OF THE 1125 NOTES IN LATE FEBRUARY AFTER THE OFFERING OF THE 675 NOTES SCHEDULED TO CLOSE JAN 25 THE COMPANY SAID IT WILL REDEEM THE 1125 NOTES AT THE AGGREGATE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST AND A 64 MILLION PREPAYMENT PREMIUM MITCHELL SAID IT WILL REALIZE 9 MILLION IN ANNUAL INTEREST SAVINGS AS A RESULT OF THE SENIOR NOTE REFINANCING AND IT ALSO WILL USE PROCEEDS FROM THE OFFERING TO PAY DOWN BANK DEBT CS FIRST BOSTON AND GOLDMAN SACHS & CO ARE MANAGING THE OFFERING 9401200155 940120 POLITICS & POLICY HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1009 ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE SEX AND OWING TO THE EFFECTS OF THE LOS ANGELES EARTHQUAKE BY REGION TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 31 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR IS 45 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP 9401200154 940120 TECHNOLOGY & HEALTH EU OFFICIAL SEEKS TO BAR MORE FRENCH AID TO BULL BRUSSELS THE EUROPEAN UNION'S TOP COMPETITION OFFICIAL IS SEEKING AN EXTRAORDINARY ORDER TO BAR THE INJECTION OF ADDITIONAL FRENCH STATE AID INTO THE AILING STATEOWNED COMPUTER COMPANY CIE DES MACHINES BULL OFFICIALS SAID THE EU COMPETITION COMMISSIONER KAREL VAN MIERT IS URGING THE FULL EU COMMISSION TO EXTEND AN EARLIER PROBE INTO 25 BILLION FRANCS 4215 MILLION OF STATE AID PROVIDED TO BULL LAST FEBRUARY TO COVER AN ADDITIONAL 86 BILLION FRANCS RECENTLY ANNOUNCED BY THE FRENCH GOVERNMENT PEOPLE CLOSE TO THE EU SAID ABOUT THREEFOURTHS OF THE 86 BILLION FRANCS ALREADY HAS BEEN DISBURSED BUT MR VAN MIERT SEEKS THE ORDER TO PREVENT THE REMAINDER FROM BEING TRANSFERRED PENDING COMPLETION OF THE PROBE THE NEW STEPS ON BULL REFLECT GROWING IMPATIENCE IN BRUSSELS OVER THE FAILURE OF THE FRENCH GOVERNMENT AND STATEOWNED FRENCH TELECOM WHICH OWN 90 OF BULL TO SUBMIT A RESTRUCTURING PLAN TO THE COMMISSION EU OFFICIALS INSIST THE STATE AID TO BULL IS ILLEGAL UNLESS THE FUNDS ARE USED TO MAKE THE COMPANY VIABLE THROUGH A RESTRUCTURING BLUEPRINT BULL SHOWED A LOSS OF NEARLY FIVE BILLION FRANCS IN 1992 AND HAD A FURTHER DEFICIT OF TWO BILLION FRANCS IN THE FIRST HALF OF 1993 9401200153 940120 MARKETING & MEDIA TIME WARNER DIVISION NAMES NEW PUBLISHERS AT FORTUNE MONEY NEW YORK TIME INC THE PUBLISHING DIVISION OF TIME WARNER INC NAMED NEW PUBLISHERS AT TWO OF ITS MAGAZINES FORTUNE AND MONEY AT FORTUNE STUART ARNOLD 42 YEARS OLD WAS PROMOTED TO PUBLISHER FROM HIS PREVIOUS POST OF ADVERTISING SALES DIRECTOR MR ARNOLD SUCCEEDS JAMES B HAYES 55 YEARS OLD WHO IS RETIRING AFTER 35 YEARS AT TIME INC MR HAYES WHO HAS BEEN ACTIVE IN EDUCATION ISSUES WILL BE ANNOUNCING A NEW EDUCATION INITIATIVE NEXT WEEK THAT HE WILL HEAD THE COMPANY SAID THE BUSINESS MAGAZINE IS CONSIDERED QUITE HEALTHY HAVING OUTPERFORMED COMPETING MAGAZINES IN ADVERTISING GAINS LAST YEAR IN A DIFFICULT ADVERTISING CLIMATE ACCORDING TO PUBLISHERS INFORMATION BUREAU FORTUNE SOLD 2794 AD PAGES IN 1993 A HEALTHY 95 GAIN FROM THE PREVIOUS YEAR THE COMPANY'S RATE BASE THE NUMBER OF SUBSCRIBERS GUARANTEED TO ADVERTISERS ROSE 11 IN 1993 TO 870000 IN FACT THE PUBLICATION CONSISTENTLY DELIVERS MORE THAN 900000 SAYS A SPOKESWOMAN THE NEW PUBLISHER OF MONEY IS ADVERTISING SALES DIRECTOR BETSY MARTIN 50 MS MARTIN SUCCEEDS WILLIAM MYERS 59 WHO IS RETIRING AFTER 32 YEARS AT TIME INC MONEY ISN'T FLOURISHING TO THE SAME DEGREE AS FORTUNE ALTHOUGH CIRCULATION ROSE MODESTLY LAST YEAR MONEY'S AD PAGES DECLINED 75 IN 1993 TO 1227 PAGES REPORTS PUBLISHERS INFORMATION BUREAU MONEY IS STILL THE LEADER OF THE PERSONAL FINANCE CATEGORY WITH NEARLY TWO MILLION SUBSCRIBERS SAYS MAGAZINE CONSULTANT MARTIN WALKER BUT THE CATEGORY HAS BECOME MUCH MORE COMPETITIVE IN RECENT YEARS AT THE MIDDLEINCOME END OF THE MARKET KIPLINGER'S PERSONAL FINANCE WAS REPOSITIONED ABOUT A YEAR AND A HALF AGO ITS AD PAGES ROSE NEARLY 11 IN 1993 AND AT THE UPPERINCOME END SMARTMONEY AND WORTH ARE ATTRACTING READERS A SPOKESWOMAN FOR MONEY SAID THE FACT THAT THE TWO PROMOTIONS OCCURRED SIMULTANEOUSLY IS COINCIDENTAL AND HAS NOTHING TO DO WITH THE RESTRUCTURING ANNOUNCED LAST FALL OF TIME WARNER'S PUBLISHING GROUP MONEY MAGAZINE WHICH IS PART OF TIME WARNER INC'S PUBLISHING UNIT RECORDED A 33 DROP IN ITS ADVERTISING PAGES IN 1993 AN ARTICLE THURSDAY INCORRECTLY STATED THAT MONEY'S AD PAGES DECLINED 75 LAST YEAR BASED ON FIGURES FROM PUBLISHERS INFORMATION BUREAU THAT DIDN'T INCLUDE MONEY'S EXTRA YEAREND EDITION 9401200152 940120 JAPAN CLEARS TRADE PLAN US LIFTS SANCTION THREAT WASHINGTON THE US WITHDREW ITS THREAT OF TRADE SANCTIONS AFTER JAPAN'S CABINET ENDORSED A BROAD PLAN TO OPEN THE NATION'S PUBLICWORKS MARKET TO FOREIGN CONSTRUCTION COMPANIES US TRADE REPRESENTATIVE MICKEY KANTOR PRAISED THE JAPANESE PLAN AS AN HISTORIC STEP FORWARD BECAUSE IT MAKES THE BIDDING PROCESS MORE TRANSPARENT AND OBJECTIVE THE US ACTION HAD BEEN EXPECTED THE TWO SIDES HAVE BEEN WORKING TO DEVISE A MUTUALLY AGREEABLE SYSTEM THE US ALSO REALIZES THAT A SANCTIONS BATTLE WOULD WRECK OTHER TRADE NEGOTIATIONS WITH JAPAN THAT ARE MOVING TOWARD THEIR CONCLUSION IN THOSE FRAMEWORK TALKS THE US IS PRESSING JAPAN TO ACCEPT TARGETS FOR FOREIGN IMPORTS TREASURY SECRETARY LLOYD BENSTEN WHO IS TRAVELING IN ASIA PLANS TO MEET WITH JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND FINANCE MINISTER HIROHISA FUJII SUNDAY TO STRESS THE IMPORTANCE THE US PLACES ON THOSE TALKS BOTH SIDES ARE LOOKING FOR AN AGREEMENT BY FEB 11 WHEN MR HOSOKAWA COMES TO WASHINGTON TO MEET PRESIDENT CLINTON IN THE CONSTRUCTION NEGOTIATIONS THE US SETTLED FOR MUCH LESS THAN IT HAS BEEN SEEKING IN THE BROADER FRAMEWORK TALKS THE TWO SIDES WILL TRACK HOW WELL FOREIGN CONSTRUCTION COMPANIES DO BUT THE JAPANESE WON'T HAVE TO MEET ANY NUMERICAL GOAL PROCEDURAL CHANGES IN THE PUBLICWORKS AREA IS A BETTER WAY TO PROCEED MR KANTOR SAID 9401200151 940120 MARKETING & MEDIA CBS WINS US TV RIGHTS FOR 1998 WINTER OLYMPICS NEW YORK CBS INC AS EXPECTED WON THE US TELEVISION RIGHTS TO THE 1998 WINTER OLYMPICS IN NAGANO JAPAN FOR 375 MILLION THE RIGHTS FEE A WINTER OLYMPICS RECORD IS 27 MORE THAN THE 295 MILLION THAT CBS PAID FOR THE GAMES THIS YEAR IN LILLEHAMMER NORWAY AT A NEW YORK NEWS CONFERENCE CBS CHAIRMAN LAURENCE TISCH SAID THE PRICE REACHED IN NEGOTIATION WITH THE INTERNATIONAL OLYMPICS COMMITTEE IS A NUMBER WE'RE VERY HAPPY WITH HE SAID CBS WILL JUST ABOUT BREAK EVEN ALTHOUGH THERE WERE NO OTHER BIDDERS FOR THE GAMES MR TISCH DISMISSED SUGGESTIONS THAT CBS HAD OVERPAID WE'RE BIG BOYS HE SAID WE KNOW WHEN TO FOLD OUR CARDS AND LEAVE THE GAME 9401200150 940120 QVC NETWORK EXTENDS BID FOR PARAMOUNT TO JAN 31 WEST CHESTER PA QVC NETWORK INC EXTENDED ITS 101 BILLION TAKEOVER OFFER FOR PARAMOUNT COMMUNICATIONS INC FOR 10 DAYS UNTIL JAN 31 MATCHING THE EXPIRATION OF THE LATEST OFFER BY VIACOM INC QVC ABIDED BY THE BIDDING RULES SET BY NEW YORKBASED PARAMOUNT IN EXTENDING THE OFFER EVEN THOUGH PEOPLE CLOSE TO QVC HAD THREATENED THAT THE HOMESHOPPING COMPANY MIGHT CONTEST THE BIDDING PROCEDURES QVC HAS OBJECTED TO EXTENDING ITS OFFER BECAUSE VIACOM WITH ITS LATEST OFFER HASN'T TOPPED THE VALUE OF QVC'S BID ALTHOUGH VIACOM'S OFFER VALUED AT ABOUT 98 BILLION IS LESS THAN QVC'S BID ON A MARKETVALUE BASIS MOST TRADERS SAID THEY PREFER THE VIACOM BID BECAUSE IT PROVIDES PROTECTION AGAINST A DOWNTURN IN VIACOM'S STOCK PRICE VIACOM IS BASED IN DEDHAM MASS PARAMOUNT'S BOARD IS SET TO MEET TOMORROW AFTERNOON TO REVIEW THE LATEST VIACOM BID AND DECIDE WHETHER TO CONTINUE ENDORSING QVC'S OFFER QVC SAID HOLDERS OF 187 MILLION OR 16 OF PARAMOUNT'S SHARES OUTSTANDING HAVE TENDERED THEIR SHARES TO QVC 9401200149 940120 A CALIFORNIA INSURER SETS UP AN OFFICE IN ITS PARKING LOT POLICYHOLDERS OF 20TH CENTURY FILE EARTHQUAKE CLAIMS OUTSIDE CRIPPLED TOWER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL WOODLAND HILLS CALIF WHAT DOES A SOUTHERN CALIFORNIA INSURANCE COMPANY DO WHEN AN EARTHQUAKE CRIPPLES ITS HOME OFFICE BUT DOESN'T STOP NEARBY POLICYHOLDERS FROM KNOCKING ON THE DOOR FOR MONEY FOR 20TH CENTURY INDUSTRIES THIS WEEK THE ANSWER WAS TO CAPITALIZE ON PERFECT WEATHER IT SET UP TENTS AND TABLES IN THE PARKING LOT ITS AD HOC CLAIMS OFFICE WAS ASSEMBLED HOURS AFTER MONDAY MORNING'S QUAKE TO HELP THE NEEDY CUSTOMERS WHO BEGAN SHOWING UP IN CARS AND ON FOOT THE TEMBLOR CENTERED JUST EIGHT MILES NORTHEAST OF THE INSURANCE HOLDING COMPANY'S HIGHRISE HEADQUARTERS IN A SUBURBAN OFFICE PARK HERE KNOCKED OUT ITS COMPUTER SYSTEMS ALONG WITH ALL POWER AND WATER WHILE THERE WASN'T ANY MAJOR STRUCTURAL DAMAGE TO THE OFFICE TOWER SMASHED WINDOW GLASS AND TOPPLED FILE CABINETS LITTERED THE BUILDING'S INTERIOR EVEN THOUGH OUR PHONES WERE REROUTED TO REMOTE LOCATIONS SOME PEOPLE COULDN'T ACCESS THEM SO THEY TOOK THE ROUTE OF WALKING IN THEIR CLAIMS SAYS RICK DINON SENIOR VICE PRESIDENT FAX MACHINES AND MANUAL FILES WERE BROUGHT DOWN TO AID CLAIMS PROCESSING WE BORROWED A TENT FROM ONE OF OUR EMPLOYEES TO KEEP PEOPLE OUT OF THE SUN SOME POLICYHOLDERS LUCKY ENOUGH TO HAVE EARTHQUAKE INSURANCE BUT UNLUCKY ENOUGH TO HAVE SUSTAINED THE CATASTROPHIC DAMAGE NEEDED TO TRIGGER COVERAGE ARE WALKING AWAY FROM THE PARKING LOT WITH CHECKS IN HAND MR DINON SAID SOME CUSTOMERS HAVE BROUGHT WATER AND REFRESHMENTS TO OUR EMPLOYEES HE ADDED SO FAR HUNDREDS OF 20TH CENTURY CUSTOMERS WHO NORMALLY TAKE UP MOST CLAIMS BUSINESS WITH THE INSURER BY TELEPHONE HAVE TAKEN ADVANTAGE OF THE SPECIAL PARKINGLOT CLAIMS OFFICE MR DINON WOULDN'T ESTIMATE THE TOTAL NUMBER OF CLAIMS HIS COMPANY IS EXPECTING FROM THE EARTHQUAKE OR THEIR DOLLAR VALUE EXCEPT IN THE BROADEST SENSE IT IS LIKELY THE LOSS WILL BE OVER 10 MILLION BUT WITHIN OUR REINSURANCE LIMIT OF 100 MILLION HE SAID UNDER ITS REINSURANCE ARRANGEMENTS 20TH CENTURY WILL RECOVER 75 OF PAYMENTS BETWEEN 10 MILLION AND 100 MILLION HE SAID SUBSIDIARIES OF 20TH CENTURY INSURE ABOUT 200000 HOMES AND CONDOMINIUMS IN CALIFORNIA OF WHICH 100000 TO 150000 ARE IN THE GENERAL QUAKE AREA MR DINON SAID OF THOSE HE ESTIMATES THAT 40 HAVE EARTHQUAKE INSURANCE MANY POLICYHOLDERS WITH EARTHQUAKE COVERAGE WON'T RECEIVE BENEFITS HOWEVER BECAUSE SUCH POLICIES CARRY A DEDUCTIBLE OF 10 OF THE POLICY AMOUNT COVERAGE FOR PERSONAL PROPERTY ALSO HAS A 10 DEDUCTIBLE BASED ON 70 OF THE POLICY AMOUNT FOR EXAMPLE A HOME INSURED FOR 100000 WOULD HAVE TO SUSTAIN DAMAGE OF MORE THAN 10000 FOR A POLICY TO PAY OUT ANY BENEFITS FOR DAMAGE TO THE STRUCTURE PERSONAL PROPERTY LOSSES WOULD HAVE TO EXCEED 10 OF 70000 OR 7000 MR DINON SAID 9401200148 940120 WHO'S NEWS BIOGEN NAMES FORMER BAXTER PRESIDENT TO LEAD ITS MOVE INTO PRODUCTION SALES BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL BIOGEN INC NAMED JAMES R TOBIN PRESIDENT AND CHIEF OPERATING OFFICER IN A MOVE TO STRENGTHEN MANAGEMENT AS THE COMPANY PLANS A TRANSITION FROM RESEARCH TO PRODUCTION AND SALES OF BIOLOGICALLY ENGINEERED DRUGS MR TOBIN 49 YEARS OLD UNTIL RECENTLY HELD THE SAME POSTS AT A COMPANY WITH 60 TIMES BIOGEN'S REVENUE BAXTER INTERNATIONAL INC DEERFIELD ILL HIS POSTS AT BIOGEN WERE FORMERLY HELD BY JAMES L VINCENT 54 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR TOBIN'S APPOINTMENT COMPLETES AN EIGHTPERSON MANAGEMENT TEAM INSTALLED BY MR VINCENT WHO WAS HIRED IN 1985 TO TURN AROUND A MONEYLOSING VENTURE WHICH HE HAS DONE BIOGEN CAMBRIDGE MASS HAS AMASSED 300 MILLION IN CASH FROM ROYALTIES ON PHARMACEUTICALS BASED ON ITS BIOTECHNOLOGY DISCOVERIES IT NOW WANTS TO BECOME A PHARMACEUTICAL CONCERN ITSELF MAKING AND SELLING PRODUCTS BASED ON ITS RESEARCH BIOGEN IS COUNTING ON THE MEDICALINDUSTRY EXPERIENCE OF MR TOBIN WHO RESIGNED LAST MONTH FROM BAXTER IN A DISAGREEMENT OVER CORPORATE STRATEGY TO MAKE THE TRANSITION A SUCCESS AT BAXTER I'VE WORKED MY WAY UP FROM FLUNKY TO THE TOP SAID MR TOBIN WHO REPORTS TO HIS NEW JOB NEXT MONTH I'VE STARTED UP NEW PRODUCTS WORRIED ABOUT FDA APPROVAL AND DONE JUST ABOUT EVERY ASPECT OF THINGS THAT NEED TO HAPPEN AT BIOGEN THE COMPANY HAS TENTATIVE PLANS TO SET UP A SALES STAFF NEXT YEAR OF 150 TO 200 TO MARKET NEW DRUGS TO HOSPITALS MR TOBIN SAID BIOGEN'S REVENUE NOW COMES FROM ROYALTIES FROM COMPANIES THAT MAKE AND SELL ITS DRUGS UNDER LICENSE ITS TWO MAINSTAYS A HEPATITIS B VACCINE AND ALPHA INTERFERON USED AGAINST CANCER AND HEPATITIS HAVE BEEN WINDFALLS FOR LICENSEES SMITHKLINE BEECHAM PLC AND SCHERINGPLOUGH CORP MR VINCENT ESTIMATED THAT THE TWO DRUGS HAD COMBINED SALES OF MORE THAN 15 BILLION LAST YEAR ARMED WITH A HEALTHY BALANCE SHEET AND WITH TWO PROMISING DRUGS IN CLINICAL TRIALS BIOGEN HOPES TO JOIN BIOTECH COMPANIES SUCH AS AMGEN INC AND GENENTECH INC THAT MANUFACTURE AND SELL PRODUCTS THAT THEY HAVE DEVELOPED BIOGEN HAS SAID IT EXPECTS EARNINGS OF ABOUT 90 CENTS A SHARE FOR 1993 A DROP OF 20 FROM A YEAREARLIER 112 A SHARE IT ATTRIBUTES THE DECLINE TO THE COSTS OF CLINICAL TESTS REVENUE IS EXPECTED TO CLIMB TO 150 MILLION HE SAID UP 11 FROM A YEAREARLIER 1351 MILLION WHILE BIOGEN'S LICENSING AGREEMENTS WITH SMITHKLINE AND SCHERING CONTINUE INTO THE NEXT DECADE MR VINCENT SAID THE COMPANY WILL MAKE AND MARKET ITS NEXT TWO PRODUCTS EXPECTED TO REACH THE MARKET IN THE NEXT TWO YEARS THE DRUGS BETA INTERFERON FOR THE TREATMENT OF MULTIPLE SCLEROSIS AND HIRULOG A BLOODCLOT DISSOLVER ARE IN THE FINAL PHASES OF CLINICAL TESTS MR TOBIN WILL BE IN CHARGE OF THE COMPANY'S PRODUCTS FROM R&D TO CLINICAL TRIALS TO SALES AND DISTRIBUTION MR VINCENT SAID POTENTIAL MARKETS ANALYSTS SAY ARE SUBSTANTIAL ABOUT 500 MILLION IN ANTICOAGULANTS ARE SOLD ANNUALLY WHILE ANALYSTS THINK SALES OF BETA INTERFERON FOR MULTIPLE SCLEROSIS COULD HIT 1 BILLION BUT BIOGEN WILL HAVE TO DISPLACE DRUGS CURRENTLY IN USE AND NEW COMPETITORS IN EACH CATEGORY CHIRON CORP EMERYVILLE CALIF RECEIVED FDA APPROVAL LATE LAST YEAR TO MARKET ITS VERSION OF BETA INTERFERON AGAINST MULTIPLE SCLEROSIS AND HIRULOG WILL COMPETE WITH A SIMILAR DRUG FROM SWITZERLAND'S CIBAGEIGY EARNINGS IN THE NEXT FEW YEARS ARE LIKELY TO BE VOLATILE AS A RESULT OF COSTS OF NEWPRODUCT INTRODUCTIONS WHICH INCLUDE 5A8 AN AIDS ANTIBODY AGENT ALREADY BIOGEN HAS WARNED ANALYSTS THAT IT EXPECTS EARNINGS THIS YEAR TO BE FLAT OR DOWN FROM 1993 THE SOFTTOOTH NATURE OF FUTURE EARNINGS IS DUE TO AN AGGRESSIVE MARKETING PLAN MR VINCENT SAID BUT WE'RE A REVENUEDRIVEN COMPANY MOST OF OUR INVESTORS WANT US TO SWING FOR THE FENCE 9401200147 940120 ECONOMY MERCHANDISETRADE DEFICIT NARROWED IN NOVEMBER AS IMPORTS EXPORTS FELL BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US MERCHANDISETRADE DEFICIT NARROWED IN NOVEMBER AS IMPORTS AND EXPORTS DROPPED FROM OCTOBER'S RECORD HIGHS THE DEFICIT FELL TO 1017 BILLION FROM OCTOBER'S REVISED 1090 BILLION THE COMMERCE DEPARTMENT SAID EXPORTS FELL LESS THAN 01 TO 4007 BILLION AND IMPORTS FELL 15 TO 5024 BILLION ALTHOUGH SMALLER THAN THE PREVIOUS MONTH NOVEMBER'S GAP CONTINUED THE TREND OF MONTHLY DEFICITS EXCEEDING 10 BILLION FOR THE FIRST 11 MONTHS OF 1993 THE MERCHANDISE TRADE DEFICIT TOTALED 10880 BILLION EXCEEDING THE 8450 BILLION FOR ALL OF 1992 THE 11MONTH DEFICIT WAS THE LARGEST SINCE 1987 WHICH ENDED WITH A RECORD GAP OF 15212 BILLION THE FIGURES DON'T INCLUDE THE US TRADE SURPLUS IN SERVICES LARGE TRADE DEFICITS ARE THE PRICE THE US PAYS FOR HAVING A RELATIVELY STRONGER ECONOMY THAN OTHER INDUSTRIALIZED COUNTRIES THE US ECONOMY HAS BEEN STEADILY GROWING AND IMPORTS INCREASING SINCE THE BOTTOM OF THE RECESSION NEARLY THREE YEARS AGO THE WORSENING ECONOMIC TROUBLES OF JAPAN AND EUROPE IN THE SAME PERIOD HAVE LED THEM TO BUY FEWER US GOODS BRIAN HORRIGAN AN ECONOMIST WITH LOOMIS & SAYLES A BOSTON MONEYMANAGEMENT FIRM POINTED OUT THAT THE TRADE BALANCE WOULD BE MUCH WORSE IF IT WEREN'T OFFSET BY THE DROP IN IMPORTED OIL PRICES TO 1369 A BARREL IN NOVEMBER FROM 1460 IN OCTOBER DESPITE THE WOEFUL ECONOMIC CONDITION OF EUROPE AND JAPAN US EXPORTS GREW 6 IN THE 12 MONTHS ENDED IN NOVEMBER AND CONTINUED IN THE LATEST MONTH NEAR THE RECORD HIGHS SET IN OCTOBER JOSEPH LIRO OF SG WARBURG & CO SAID THIS INDICATES US MANUFACTURERS HAVE IMPROVED QUALITY AND REDUCED UNITLABOR COSTS TO REEMERGE AS TOUGH GLOBAL COMPETITORS THE POLITICALLY EXPLOSIVE TRADE DEFICIT WITH JAPAN SHRANK IN NOVEMBER TO 572 BILLION FROM 609 BILLION IN OCTOBER THE DEFICIT WITH CHINA DECREASED TO 212 BILLION FROM 266 BILLION THE TRADE POSITION WITH WESTERN EUROPE TOOK THE HARDEST HIT WITH THE DEFICIT INCREASING TO 119 BILLION IN NOVEMBER FROM 170 MILLION IN OCTOBER DR LIRO SAID THIS WAS MAINLY BECAUSE EUROPEANS CUT BACK ON PURCHASES OF CAPITAL GOODS SUCH AS MACHINE TOOLS AND COMMUNICATIONS EQUIPMENT BIG EXPORT GAINS WERE REPORTED BY CIVILIAN AIRCRAFT ENGINES AND TOBACCO BIG EXPORT DECLINES WERE RECORDED IN NONMONETARY GOLD WHICH HAS BEEN UNUSUALLY HIGH ALL YEAR AND CIVILIAN AIRCRAFT WHICH HAS SUFFERED FROM THE WEAK GLOBAL ECONOMY AND COMPETITION FROM EUROPE'S SUBSIDIZED AIRBUS INDUSTRIE BEGINNING WITH JANUARY STATISTICS THE COMMERCE DEPARTMENT WILL BEGIN REPORTING MONTHLY ON TRADE IN BOTH GOODS AND SERVICES CURRENTLY DATA ON SERVICES ARE AVAILABLE ONLY ON A QUARTERLY BASIS FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS EXCEPT THOSE GIVEN FOR INDIVIDUAL COUNTRIES OR REGIONS 9401200146 940120 DOW JONES WORLD STOCK INDEX NEW YORK A DATA ERROR INVOLVING A NEW ZEALAND COMPANY WAS CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE CHANGES AFFECT INDEXES FOR NEW ZEALAND IN BOTH LOCAL CURRENCY AND US DOLLARS THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED TUESDAY IN US DOLLAR TERMS AT 11344 RATHER THAN 11343 AS ORIGINALLY REPORTED 9401200145 940120 COMMODITIES OIL FUTURES PRICES JUMP AS SUBZERO WEATHER KEEPS GRIPPING MUCH OF THE EASTERN SEABOARD BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES WHICH HAVE BEEN IN A SLUMP JUMPED YESTERDAY AS SUBZERO WEATHER CONTINUED TO GRIP MUCH OF THE EASTERN SEABOARD THE EXTREME COLD CAUSED ELECTRIC UTILITIES IN PENNSYLVANIA MARYLAND NEW JERSEY NEW YORK AND NORTH CAROLINA TO REDUCE POWER TO CUSTOMERS AS DEMAND FOR POWER ESCALATED ROLLING BLACKOUTS AS FAR SOUTH AS WASHINGTON DC WERE THREATENED AS THE CALL ON POWER GREW GOVERNMENT OFFICES IN SOME OF THE STATES CLOSED DOWN EARLY TO REDUCE THEIR DRAW ON VOLTAGE AND AMTRAK SHARPLY CUT ITS TRAIN SERVICE IN THE AREA SOME POWER PLANTS WERE REPORTEDLY RUNNING SHORT OF THE PETROLEUM NEEDED TO RUN THEM CLOSURE OF A MAJOR TEXACO INC PIPELINE CARRYING CRUDE FROM CUSHING OKLA TO MIDLAND TEXAS ALSO CAUSED A SPIKE IN PRICES THE PIPELINE CARRIES WEST TEXAS INTERMEDIATE CRUDE OIL ONE OF THE PRIMARY CRUDES DELIVERED AGAINST FUTURES CONTRACTS TRADED AT THE NEW YORK MERCANTILE EXCHANGE A TEXACO SPOKESMAN SAID THAT THE PIPELINE IS UNDERGOING REPAIRS AFTER A SUPPORT TOWER COLLAPSED CAUSING A PORTION OF THE PIPELINE TO SAG TRADERS WERE CONCERNED THAT THERE MIGHT NOT BE ENOUGH CRUDE IN STORAGE TO SATISFY DELIVERY ON FUTURES CONTRACT COMMITMENTS DURING FEBRUARY CRUDE OIL FOR FEBRUARY DELIVERY SETTLED AT 1522 A BARREL UP 35 CENTS HEATING OIL AND GASOLINE PRICES ROSE AS WELL BUT TRADERS YESTERDAY WERE UNSURE HOW LONG BUYING EUPHORIA WOULD CONTINUE STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER THE MARKET CLOSED WERE GREETED WITH MIXED REACTION ALSO BEARISH WAS A REPORT FROM THE SECRETARIAT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT DEMAND FOR OPEC CRUDE DURING THE FOURTH QUARTER OF 1993 WAS ACTUALLY 330000 BARRELS A DAY LESS THAN ANTICIPATED THE SECRETARIAT ALSO REPORTED THAT THE GROUP'S OUTPUT IN DECEMBER INCREASED TO 24730000 BARRELS DAILY UP FROM 24630000 BARRELS DURING NOVEMBER BUT NEWS FROM OPEC HAS BEEN TAKING A BACKSEAT TO THE WEATHER LATELY SAID ANDY LEBOW ANALYST FOR ED & F MAN INTERNATIONAL FUTURES INC IN NEW YORK IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF WHEAT AND CORN FUTURES CONTRACTS FELL FOR THE SECOND CONSECUTIVE DAY WHEAT PRICES ARE UNDER PRESSURE FROM SIGNS THE US AGRICULTURE DEPARTMENT PLANS TO TRIM ITS EXPORT SUBSIDY BUDGET MUCH OF THE WHEAT EXPORTED FROM THE US MOVES UNDER THE EXPORT ENHANCEMENT PROGRAM THE DEPARTMENT COMPENSATES EXPORTERS THAT SELL US WHEAT AT A DISCOUNT TO TARGETED NATIONS SUCH AS CHINA AND RUSSIA CORN PRICES FELL AS COMMODITY FUND MANAGERS CONTINUED TO TAKE PROFITS ON A RALLY THAT HAS LASTED SINCE OCTOBER SOYBEAN PRICES SETTLED MIXED ANALYSTS ARE FOLLOWING REPORTS THAT A MAJOR GRAIN MERCHANT IS ARRANGING THE IMPORT INTO THE US OF 20000 METRIC TONS OF BRAZILIAN SOYBEAN OIL A METRIC TON IS 220462 POUNDS THE MOVE IS UNUSUAL BECAUSE THE US IS USUALLY A MAJOR SOYBEAN EXPORTER THE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST YEAR REDUCED BOTH THE SIZE AND QUALITY OF THE US SOYBEAN CROP BRAZIL MEANWHILE IS PREPARING FOR A LARGE SOYBEAN HARVEST IN A FEW MONTHS SOYBEANS ARE CRUSHED TO MAKE OIL AND MEAL COFFEE FUTURES PRICES SLUMPED AS TRADERS SKEPTICALLY VIEWED THE EXPORTLIMITING AGREEMENT OF LATIN AMERICAN COFFEE PRODUCERS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS DOWN 215 CENTS TO 7250 CENTS AN OUNCE LATIN AMERICAN AND AFRICAN COFFEEPRODUCING NATIONS HAVE JOINED FORCES TO LIMIT EXPORTS AT TIMES THAT PRICES ARE BELOW 80 CENTS A POUND BUT SOME LATIN AMERICAN COUNTRIES NOTABLY BRAZIL HAVE HAD A HARD TIME HONORING THEIR OBLIGATIONS UNDER THE AGREEMENT ANALYSTS SAID YESTERDAY'S PRICE DROP IN PART REFLECTED DOUBT AMONG FUTURES TRADERS THAT THE EXPORTLIMITING AGREEMENT WILL LAST AMERICAN PETROLEUM INSTITUTE INVENTORY STATISTICS RELEASED WEDNESDAY SHOWED THAT CRUDE OIL STOCKS DECREASED BY 505000 BARRELS TO 333540000 BARRELS LAST WEEK DISTILLATE OR HEATING OIL AND DIESEL FUEL INVENTORIES DECREASED BY 4773000 BARRELS TO 137079000 BARRELS GASOLINE INVENTORIES ROSE IN THURSDAY'S COMMODITIES COLUMN THE FIGURES WERE MISSTATED 9401200144 940120 WORLD AIRWAYS SEEKS NEW ROUTE HERNDON VA WORLD AIRWAYS INC FILED WITH THE DEPARTMENT OF TRANSPORTATION SEEKING TRAFFIC RIGHTS TO OPERATE FLIGHTS BETWEEN THE US AND SOUTH AFRICA THE CARRIER A UNIT OF WORLDCORP INC SAID ITS PLANS CALL FOR A MARKETING AGREEMENT WITH A MAJOR US AIRLINE TO PROVIDE CONNECTING SERVICE AMONG OTHER THINGS WORLD AIRWAYS SAID IT WANTS TO BEGIN FLYING TO SOUTH AFRICA JULY 1 IN ITS FILING WITH THE TRANSPORTATION DEPARTMENT WORLD AIRWAYS ESTIMATED THAT ITS PROPOSED SERVICE WOULD GENERATE A PROFIT OF 49 MILLION IN THE FIRST YEAR 9401200143 940120 SHAKEN FAITH SMALLBUSINESS OWNERS SAY LA IS MURDER EVEN WITHOUT QUAKES CONSIDERING CRIME RECESSION RIOTS AND SCAM ARTISTS IT ISN'T FUN ANYMORE' FACING A 10000 DEDUCTIBLE BY JOHN R EMSHWILLER AND SARAH LUBMAN STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES AMID THE WRECKAGE OF LINDA RAE'S HIS SAN FERNANDO VALLEY KNICKKNACK SHOP DENNIS BLACK SAYS MONDAY'S EARTHQUAKE DELIVERED A SHARP EXCLAMATION POINT TO AN INCREASINGLY GRIM REALITY OPERATING A SMALL BUSINESS IN A REGION ALREADY WRACKED BY RIOTS AND RECESSION IS A SHAKY PROPOSITION MR BLACK SAYS THE DOWNHILL SLIDE OF HIS BUSINESS HAS BEEN UNDER WAY FOR YEARS AND INVOLVES MANY FORCES OTHER THAN GEOLOGY CHANGING DEMOGRAPHICS LINGERING RECESSION THE 1992 RIOTS AND RISING CRIME HAVE ALL TAKEN THEIR TOLL ON HIS FINANCES AS WELL AS HIS OUTLOOK HE STILL VIVIDLY RECALLS THE BULLET FIRED FROM A PASSING CAR THAT GRAZED HIS SCALP FOUR YEARS AGO AS HE STOOD OUTSIDE HIS STORE THIS BUSINESS USED TO BE FUN SAYS MR BLACK OF HIS SHOP IN RESEDA A FEW MINUTES DRIVE FROM THE QUAKE'S EPICENTER BUT IT ISN'T FUN ANYMORE HE ADDS PICKING UP A SHATTERED GLASS PITCHER ONE OF HUNDREDS OF ITEMS THROWN ABOUT BY THE QUAKE MR BLACK HAS LOTS OF COMPANY AS RESIDENTS HERE DIG OUT FROM UNDER THE WRECKAGE OF THE AREA'S WORST EARTHQUAKE THIS CENTURY MANY OF THE BIGGEST ECONOMIC VICTIMS WILL BE SMALLBUSINESS OWNERS THOUSANDS LIKE MR BLACK FIND THEMSELVES UNINSURED AND WITHOUT THE RESERVES TO QUICKLY RECOVER FOR UNLIKE LARGER COMPANIES MANY SMALL BUSINESSES OPERATE IN AN ENVIRONMENT IN WHICH MAKING ENOUGH MONEY TO GET TO THE END OF EACH MONTH IS A SIGNIFICANT ACCOMPLISHMENT SMALL BUSINESS BY ITS NATURE HAS LESS INSULATION IT IS A TENUOUS EXISTENCE SAYS CRAIG ARONOFF DIRECTOR OF THE FAMILY ENTERPRISE CENTER AT KENNESAW STATE COLLEGE IN MARIETTA GA DISASTERS SUCH AS THE QUAKE CAN BE THE ULTIMATE TEST FOR AN ENTREPRENEUR HE ADDS IT IS A TIME WHEN THE SKIN IS RIPPED AWAY AND YOU SEE THE HEART OF A SMALL BUSINESS SINCE MONDAY THE HEART OF THE SMITH BROS COFFEE CAFE NEAR SOUTH CENTRAL LOS ANGELES HAS BEEN SOGGY ITS FUTURE BRITTLE THE FLOOR IS COVERED WITH BROKEN GLASS AND CHINA SPILLED SODA AND SUGAR AND SODDEN BISCOTTI THE CAFE WAS FLOODED WHEN A WATER PIPE BROKE DURING THE QUAKE OWNER GREGORY D SMITH DOESN'T HAVE INSURANCE AND ISN'T SURE WHERE HE CAN TURN FOR HELP TO REPLACE MY INVENTORY WILL BE DIFFICULT IF NOT IMPOSSIBLE HE SAYS IF PAST DISASTERS ARE ANY GUIDE MANY SMALL BUSINESSES IN THIS REGION WON'T SURVIVE THE QUAKE OF '94 OF 170 KOREANAMERICANOWNED STORES DAMAGED AND CLOSED AFTER THE 1992 LOS ANGELES RIOTS ONLY SIX HAVE BEEN ABLE TO REOPEN SAYS THE KOREANAMERICAN GROCER'S ASSOCIATION A TRADE GROUP SUCH DIRECT ASSAULTS ON SMALL BUSINESSES HAVE BEEN MAGNIFIED BY EXTRANEOUS FACTORS NOT THE LEAST OF WHICH HAVE BEEN A LINGERING RECESSION THAT BEGAN IN 1990 AND A SUBSEQUENT SHAKEOUT IN THE REGION'S IMPORTANT DEFENSE SECTOR WHICH HAS COST TENS OF THOUSANDS OF JOBS MR SMITH'S COFFEE CONCERN IS A TEXTBOOK CASE OF HOW LITTLE COMPANIES WITHER UNDER THESE REPEATED BLOWS THOUGH HE SUFFERED NO DIRECT PHYSICAL DAMAGE IN THE RIOTS MANY OF THE CUSTOMERS PROPELLING HIS BRISK MAILORDER BUSINESS WITH SMITH BROS COFFEE WERE WIPED OUT SOME MOVED AWAY AND OTHERS NEVER REBUILT MY WHOLE DISTRIBUTION NETWORK WAS SEVERED MR SMITH SAYS LIKE HUNDREDS OF OTHER SMALLBUSINESS OWNERS MR SMITH APPLIED FOR A FEDERAL DISASTER LOAN THROUGH THE SMALL BUSINESS ADMINISTRATION ALTHOUGH SUCH LOANS HELP MANY SMALLBUSINESS OPERATORS MORE THAN A THIRD OF THOSE WHO APPLY HISTORICALLY ARE TURNED DOWN USUALLY BECAUSE OF INADEQUATE FINANCES MR SMITH SAYS HE WAS REJECTED BECAUSE HE LACKED A FIVEYEAR BUSINESS PLAN SO HE SCRAMBLED TO SURVIVE SWITCHING HIS EFFORTS FROM WHOLESALE TO A POTENTIALLY HIGHERMARGIN CAFE TO RAISE THE 4000 HE NEEDED TO OPEN A NEW LOCATION HE HUSTLED ODD JOBS IN HIS SIDELINE AS AN ACTOR SHAKEN BY THE RIOTS MR SMITH TRIED TO BUY SOME BUSINESS INSURANCE WARY OF FLYBYNIGHT FIRMS HE CONTACTED ONLY MAJOR INSURERS BUT HIS INNERCITY LOCATION WORKED AGAINST HIM WHEN HE CALLED LARGE COMPANIES WOULDN'T EVEN ENTERTAIN THE THOUGHT OF SELLING HIM A POLICY MR SMITH SAYS SO HE REMAINED UNINSURED SCORES OF OTHER SMALLBUSINESS OWNERS DISCOVERED AFTER THE RIOTS THAT HAVING AN INSURANCE POLICY ISN'T NECESSARILY THE SAME AS BEING INSURED MANY WERE SCAMMED BY CROOKED INSURERS WHO TOOK THEIR PREMIUMS BUT DISAPPEARED WHEN DISASTER STRUCK THE OPERATOR OF ONE SUCH FIRM RECENTLY WAS SENTENCED TO 17 YEARS IN FEDERAL PRISON FOR VARIOUS INSURANCE FRAUDS EVEN SOME OF THE FEW SOUTHERN CALIFORNIA SMALLBUSINESS OWNERS WHO BOUGHT EARTHQUAKE INSURANCE ARE WONDERING HOW MUCH IT WILL HELP THEM IN ADDITION TO BEING COSTLY SUCH POLICIES GENERALLY HAVE HIGH DEDUCTIBLES JANE KENNEDY WHO DOES HAVE EARTHQUAKE INSURANCE SAYS MONDAY'S TREMOR DID ABOUT 15000 IN DAMAGE TO THE CONTENTS OF HER BEAUTYPRODUCTS SHOP CALLED PALMETTO IN SANTA MONICA IT SENT THREE GLASS WINDOW DISPLAYS LOADED WITH MERCHANDISE CRASHING TO THE GROUND BREAKING SCORES OF BOTTLES AND DAMAGING NEW CARPETING MS KENNEDY BOUGHT HER POLICY THREE YEARS AGO AFTER A FEW MINOR QUAKES RATTLED HER SHOP BUT HER DEDUCTIBLE IS ABOUT 10000 MAKING UP THAT LOSS HERSELF WILL SET ME BACK ONE OR TWO YEARS MS KENNEDY SAYS WITH ITS THREE FULLTIME EMPLOYEES AND 4200 IN MONTHLY RENT PALMETTO ALREADY WAS STRUGGLING TO COVER COSTS IN THE WEAK LOCAL ECONOMY DESPITE GOING TO A SEVENDAY WORKWEEK EARLY LAST YEAR THE SHOP'S WEEKLY SALES OF ABOUT 10000 ARE STILL 10 BELOW 1991 LEVELS FOR MR BLACK THE OWNER OF LINDA RAE'S EARTHQUAKE INSURANCE WAS SIMPLY A LUXURY HE COULDN'T AFFORD WITH SIX CHILDREN YOU OFTEN HAVE TO CHOOSE BETWEEN PUTTING FOOD ON THE TABLE OR MONEY INTO THE BUSINESS HE SAYS THE BUSINESS HAS NEVER BEEN HIGHLY PROFITABLE SELLING USED KNICKKNACKS ISN'T THE KIND OF BUSINESS WHERE YOU DRIVE A MERCEDES THE ONETIME ACCOUNTANT SAYS BUT FOR YEARS THE 16YEAROLD SHOP DID ALLOW HIM AND HIS FAMILY TO MOTOR ALONG IN A MODEST BUT ACCEPTABLE STYLE A DECENT THOUGH RENTED HOUSE TWO CARS AND AN OCCASIONAL NIGHT OUT AT A NEARBY SIZZLER RESTAURANT BACK IN 1978 MR BLACK RECALLS RESEDA WAS LIKE MUCH OF THE SAN FERNANDO VALLEY STILL A LARGELY WHITE WORKINGCLASS AREA HIS LOWPRICED COLLECTIBLE ITEMS WHICH HE DESCRIBES AS RANGING FROM JUNK TO SOME NICE OLD STUFF FOUND A READY MARKET AMONG THE LOCALS HIS BUSINESS WAS HELPED BY SURROUNDING THRIFT SHOPS AND A LOCAL PIZZA PARLOR WHICH ATTRACTED CUSTOMERS AND HELPED GENERATE FOOT TRAFFIC IN THE AREA MR BLACK WISTFULLY RECALLS THE SATURDAYS JUST A FEW YEARS BACK WHEN HIS STORE WOULD BE JAMMED WITH CUSTOMERS FROM MORNING TO WELL AFTER DARK BUT THEN THE NEIGHBORHOOD STARTED CHANGING FOR THE WORSE FROM MR BLACK'S PERSPECTIVE A FLOOD OF IMMIGRANTS FROM LATIN AMERICA ASIA AND THE MIDDLE EAST FLOWED INTO LOS ANGELES IN THE 1980S MANY SETTLED IN THE SAN FERNANDO VALLEY DRAMATICALLY CHANGING THE DEMOGRAPHICS AND SPENDING HABITS OF THE AREA THE PIZZA PARLOR NEAR LINDA RAE'S IS NOW AN IRANIAN SHISHKEBAB RESTAURANT SEVERAL STORES ACROSS THE STREET NOW SPORT SIGNS PARTLY WRITTEN IN VIETNAMESE THE 52YEAROLD MR BLACK A LIFELONG RESIDENT OF THE AREA CONCEDES THAT HE ISN'T IN TUNE WITH THE TASTES OF HIS NEW NEIGHBORS AND THEY DON'T SEEM INTERESTED IN BUYING WHAT HE HAS TO SELL BUT FAR WORSE HE SAYS IS THE PROBLEM PLAGUING MUCH OF URBAN AMERICA RISING CRIME BESIDES THE UNEXPECTED HAIR TRIM BY GUNSHOT MR BLACK SAYS SHOTS HAVE BEEN FIRED THROUGH THE FRONT WINDOW OF HIS STORE THREE TIMES TO PROTECT HIS BACK ENTRANCE AFTER REPEATED BREAKIN ATTEMPTS MR BLACK PUT UP A CHAINLINK FENCE THEN TOPPED IT WITH BARBED WIRE AND LATER REPLACED THAT WITH MUCH SHARPER RAZOR WIRE I'VE PUT MORE MONEY INTO KEEPING PEOPLE OUT OF THE STORE THAN BRINGING THEM IN HE SAYS FEAR OF CRIME HAS LED TO A PRECIPITOUS DROP IN FOOT TRAFFIC IN THE AREA AND THE STORE RARELY STAYS OPEN AFTER DARK ANYMORE CRIME IS SO BAD THAT I'M AFRAID TO SAY HELLO TO ANYONE I DON'T FEEL LIKE I BELONG HERE ANYMORE MR BLACK SAYS BUSINESS IS DOWN MORE THAN 50 FROM ITS PEAK SEVERAL YEARS AGO HE ESTIMATES THE BLACKS HAVE THOUGHT ABOUT LEAVING THE VALLEY AND MOVING TO ARKANSAS WHERE MR BLACK LIVED FOR A TIME BUT HIS WIFE LINDA WHO IS COOWNER OF THE STORE AS WELL AS ITS NAMESAKE WORKS FOR THE LOS ANGELES SCHOOL DISTRICT THAT JOB PROVIDES THE FAMILY WITH HEALTH INSURANCE THEY OTHERWISE COULDN'T AFFORD UNLESS SHE FINDS A JOB WITH SIMILAR COVERAGE ELSEWHERE WE'RE TRAPPED IN LOS ANGELES MR BLACK SAYS SO LIKE OTHER SMALLBUSINESS QUAKE VICTIMS MR BLACK IS TURNING HIS ATTENTION TO CLEANING UP AND REBUILDING MORE THAN 75 OF HIS STOCK HAS BEEN DAMAGED OR DESTROYED THE PHYSICAL CLEANUP WITH SHARDS OF BROKEN GLASS AND TUMBLED SHELVES EVERYWHERE WILL TAKE DAYS IF NOT WEEKS CRACKS IN THE BUILDING WILL ALSO HAVE TO BE INSPECTED FOR SIGNS OF STRUCTURAL DAMAGE PSYCHOLOGICAL DAMAGE MAY BE HARDER TO REPAIR RIGHT NOW I AM NUMB SAYS MR BLACK AS HE AND HIS WIFE PICK THEIR WAY THROUGH THE JUMBLE ON THE STORE'S FLOOR SOMETIMES THINKING ABOUT THE WORK AND SWEAT THAT WENT INTO BUILDING THE STORE'S COLLECTION HE SAYS I JUST WANT TO CRY STILL IN THE PAST FEW DAYS AS SCORES OF AFTERSHOCKS HAVE ROLLED THROUGH THE AREA MR BLACK HAS MANAGED TO MAINTAIN A SURPRISINGLY GOOD HUMOR AND A CERTAIN RESOLUTENESS ABOUT THE FUTURE HE SAYS HE WILL TRY TO AVOID APPLYING FOR DISASTER LOANS AS A MATTER OF PRINCIPLE I'VE NEVER ASKED FOR ANYTHING HE SAYS AND HE DOESN'T SEE WHY A QUAKE SHOULD CHANGE THAT HE DOES HAVE SOME NASCENT REVENUERAISING IDEAS EVEN THOUGH MOST ARE MORE TONGUE IN CHEEK THAN REAL POINTING TO BOXES OF SMASHED OBJETS D'ART THAT HE AND HIS WIFE HAVE HAULED OUTSIDE MR BLACK JOKINGLY INVITES A VISITOR TO BROWSE WE'RE HAVING A BROKENGLASS SALE HE ANNOUNCES 9401200142 940120 TECHNOLOGY & HEALTH SINGLE GENE IS LINKED TO OSTEOPOROSIS HINDERS DELIVERY OF CALCIUM TO BONES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS HAVE MADE THE SURPRISING DISCOVERY THAT INHERITING A SINGLE GENE CAN INCREASE THE RISK OF DEVELOPING OSTEOPOROSIS THE SEVERE BONETHINNING PROBLEM AFFLICTS ABOUT 25 MILLION ELDERLY US WOMEN AND COSTS ABOUT 10 BILLION A YEAR IN MEDICAL BILLS NATIONWIDE SHOULD THE FINDING STAND UP UNDER SCRUTINY RESEARCHERS SAID THEY EXPECT IT TO LEAD QUICKLY TO A BLOOD TEST THAT COULD PREDICT EARLY IN LIFE WHETHER A PERSON IS AT HIGH RISK OF DEVELOPING OSTEOPOROSIS DOCTORS WHO TREAT THE DISORDER SAID SUCH A PREDICTIVE TEST MIGHT ENCOURAGE A LIFETIME USE OF NUTRITIONAL AND HORMONAL SUPPLEMENTS KNOWN TO REDUCE THE PROBLEMS SUCH AS FRACTURES COMMONLY ASSOCIATED WITH THE DISEASE IF THIS GENE IS THE REAL CULPRIT AND THE DATA SO FAR LOOK EXCELLENT THEN WE HAVE A VERY POWERFUL WAY OF HELPING TO PREVENT OSTEOPOROSIS SAID GREG MUNDY A BONE BIOLOGIST AT UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER IN SAN ANTONIO OSTEOPOROSIS CAUSES ABOUT 13 MILLION BONE FRACTURES A YEAR IN THE ELDERLY AND ACCOUNTS FOR BETWEEN 25000 AND 35000 DEATHS ANNUALLY ACCORDING TO DISEASE EXPERTS AMERICANS SPEND ABOUT 1 BILLION A YEAR ON PRESCRIPTION AND NONPRESCRIPTION MEDICINES BELIEVED TO COUNTER THE DISEASE'S IMPACT PREVENTING OSTEOPOROSIS IS ONE OF THE MAJOR REASONS BEHIND THE BOOMING SALES OF ESTROGEN PRODUCTS IN THE US AND ABROAD DR MUNDY SAID THE LINKING OF OSTEOPOROSIS TO A SINGLE GENE IS CERTAIN TO RAISE EYEBROWS AND AT FIRST GLANCE MAY SEEM UNLIKELY MAINLY BECAUSE SCIENTISTS THINK LOSS OF BONE DENSITY IN AGING PEOPLE IS DUE TO A COMPLEX INTERPLAY OF NUMEROUS GENETIC AND ENVIRONMENTAL FACTORS ONE GENE DR MUNDY SAID IT'S VERY UNEXPECTED THE GENE PINPOINTED BY A TEAM OF AUSTRALIAN SCIENTISTS PRODUCES A PROTEIN IN THE BODY THAT HELPS VITAMIN D TRANSPORT BONEENRICHING CALCIUM INTO BONE CELLS THE AUSTRALIAN RESEARCHERS FOUND THAT PEOPLE WITH A VERSION OF THE PROTEIN PRODUCED BY A SPECIFIC VARIATION OF THE GENE HAD SIGNIFICANTLY LOWER BONE DENSITIES THAN PEOPLE BORN WITH ANOTHER VERSION OF THE GENE IN A REPORT OF THE RESEARCH PUBLISHED IN THE BRITISH SCIENTIFIC JOURNAL NATURE SCIENTISTS AT GARVAN INSTITUTE OF MEDICAL RESEARCH IN SYDNEY SAID THAT OF 311 WOMEN OVER AGE 60 61 WITH THE IDENTIFIED GENE HAD A LOW BONEDENSITY LEVEL THAT PUT THEM AT RISK OF HAVING A FRACTURE CONVERSELY THE RESEARCHERS FOUND 74 OF THOSE WOMEN WITH A DIFFERENT VERSION OF THE SAME GENE HAD BONETHICKNESS LEVELS THAT PUT THEM AT LOW RISK OF FRACTURES IN RECENT YEARS RESEARCH HAS SHOWN THAT WOMEN WHO EXERCISE AND TAKE CALCIUM SUPPLEMENTS AND THE HORMONE ESTROGEN ARE LESS LIKELY TO SUFFER SEVERE BONE THINNING AND RESULTANT FRACTURES THAT OFTEN WORSEN AFTER MENOPAUSE MANY WOMEN STILL SHY AWAY FROM ESTROGEN THERAPY WORRIED BY REPORTS THAT ESTROGEN USE MAY RAISE THEIR RISK OF BREAST CANCER EVEN SO SALES OF AMERICAN HOME PRODUCTS CORP'S PREMARIN THE COUNTRY'S LEADING PRESCRIPTION ESTROGEN PRODUCT ROSE 32 IN 1992 TO 642 MILLION BUT SOME SCIENTISTS INCLUDING JOHN EISMAN AT THE GARVAN INSTITUTE IN AUSTRALIA HAVE SUSPECTED THAT GENETICS ALSO PLAYS A ROLE IN BONE DENSITY DR EISMAN DECIDED TO LOOK AT THE GENETICS UNDERLYING THE VITAMIN D RECEPTOR BECAUSE A HORMONE MADE FROM THE VITAMIN HELPS FERRY CALCIUM TO BONE CELLS SEVERAL YEARS AGO HE AND OTHERS FOUND VARIATIONS IN THE STRUCTURE OF THE PROTEIN RECEPTOR FOR VITAMIN D THAT SITS ON THE SURFACE OF BONE CELLS THE RESEARCHERS FOUND THAT THE RECEPTOR CAN VARY AMONG INDIVIDUALS BASED ON WHICH VERSION THEY HAVE OF THE GENE THAT MAKES THE RECEPTOR DR EISMAN'S TEAM DECIDED TO SEE WHETHER THE GENETIC VARIATION AFFECTS BONE DENSITY BY STUDYING NUMEROUS SETS OF TWINS IN THE NEW STUDY THE RESEARCHERS REPORT THAT IDENTICAL TWINS WHO HAVE THE SAME VERSION OF THE GENE ALMOST ALWAYS HAD SIMILAR BONE DENSITIES BUT IN NONIDENTICAL TWINS WHOSE GENES DIFFER BONE DENSITY LEVELS VARIED DEPENDING ON WHICH OF SEVERAL FORMS OF THE RECEPTOR GENE WERE INHERITED IN PARTICULAR PEOPLE WITH THE SOCALLED BB VERSION OF THE VITAMIN D RECEPTOR GENE CONSISTENTLY HAD MUCH LOWER BONE DENSITY THAN PEOPLE WITH ANOTHER VERSION DUBBED BB OSTEOPOROSIS IS DEVASTATING BUT IT CAN BE PREVENTED SAID LAWRENCE E SHULMAN DIRECTOR OF THE NATIONAL INSTITUTE OF ARTHRITIS MUSCULOSKELETAL AND SKIN DISEASES WHICH FUNDED DR EISMAN'S STUDY WE HOPE THIS RESEARCH WILL ENCOURAGE THOSE AT VERY HIGH RISK TO TAKE ACTION HE SAID WOMEN SHOULD CONTINUE TAKING PREVENTIVE THERAPIES NO MATTER WHAT GENE FORM THEY INHERIT BECAUSE ALL AGING WOMEN EXPERIENCE SOME DEGREE OF BONE LOSS IN THE NATURE ARTICLE DR EISMAN AND HIS COLLEAGUES CONCEDE THAT THE EXACT BIOLOGY UNDERLYING THIS DIFFERENCE IS UNCERTAIN STILL THEY WRITE A BLOOD TEST TO IDENTIFY THE GENE VARIATION SHOULD ALLOW FOR EARLIER INTERVENTION IN THOSE AT INCREASED RISK OF OSTEOPOROSIS PROVIDE INSIGHT INTO THE PHYSIOLOGICAL MECHANISMS OF THE WIDE POPULATION VARIANCE IN BONE DENSITY AND OPEN THE WAY TO DEVELOPMENT OF SPECIFIC TARGETED THERAPY 9401200141 940120 DIGICON IN GEOPHYSICAL VENTURE HOUSTON DIGICON INC SAID IT WILL ISSUE STOCK AND PROVIDE CAPITAL FOR PART OWNERSHIP OF THREE NEW COMPANIES THAT WILL PROVIDE GEOPHYSICAL SERVICES IN THE FORMER SOVIET UNION THE VALUE OF THE TRANSACTION IS ABOUT 16 MILLION DIGICON SAID IT PLANS TO ISSUE BETWEEN 51 MILLION AND 54 MILLION SHARES OF COMMON STOCK TO MD SEIS A GEOPHYSICAL AND PETROLEUM CONSULTING FIRM WITH OFFICES IN HOUSTON AND MOSCOW MD SEIS IN TURN WILL CREATE THREE NEW COMPANIES DG SEIS OVERSEAS LTD SEISMIC TECHNOLOGY INC AND MD SEIS GEOPHYSICAL CO RUSSIA WHICH WILL RECORD AND PROCESS DATA USED TO LOCATE OIL RESERVES DIGICON SAID IT WILL OWN 50 OF THE COMPANIES AND IT WILL ALSO PROVIDE UP TO 3 MILLION IN WORKING CAPITAL 9401200140 940120 SMALL STOCK FOCUS TRADERS SEND INDEX TO YET ANOTHER HIGH IN MARKET DRIVEN BY EARNINGS REPORTS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS SENT A KEY INDEX TO ITS SIXTH HIGH IN AS MANY SESSIONS DESPITE WEAK EARNINGS FROM SEVERAL TECHNOLOGY LEADERS THAT PUMMELED THEIR SHARE PRICES THE RUSSELL 2000 INDEX SET ITS SIXTH STRAIGHT RECORD CLOSE BUT WEAK EARNINGS FROM TECHNOLOGY CONCERNS PULLED THE NASDAQ COMPOSITE INDEX LOWER AFTER TUESDAY'S RECORD THE RUSSELL 2000 INCHED UP 02 POINT OR 008 TO END AT 2626 A SIXTH STRAIGHT RECORD THE INDEX WHICH SHOWED LOSSES EARLIER IN THE DAY TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES BUT THE NASDAQ COMPOSITE INDEX WHICH IS HEAVILY WEIGHTED WITH LARGE TECHNOLOGY ISSUES DROPPED 374 POINTS OR 047 TO 78928 AFTER SETTING A NEW HIGH TUESDAY AMONG THE STOCKS THAT FELL AFTER POSTING DISAPPOINTING RESULTS WERE INTEL DOWN 4 3/4 TO 62 1/2 BORLAND INTERNATIONAL DOWN 1 1/2 TO 13 7/8 AND SYNOPTICS COMMUNICATIONS DOWN 3 1/2 TO 27 3/4 ADVANCING NASDAQ ISSUES TRAILED DECLINERS 1477 TO 1542 ON NASDAQ NATIONAL MARKET VOLUME OF 2809 MILLION SHARES COMPARED WITH TUESDAY'S 2754 MILLION OVERALL VOLUME ROSE TO 3362 MILLION SHARES FROM THE PREVIOUS DAY'S 3194 MILLION THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1408 POINTS OR 036 TO 388437 PAST ITS MONDAY RECORD CLOSE YESTERDAY THE INDEX FINISHED UNCHANGED NEWS FROM INDIVIDUAL COMPANIES WAS THE BIGGEST IMPETUS BEHIND STOCK MOVEMENT AND EARNINGS REPORTS PROVIDED MUCH OF THE PUSH HAGGAR JUMPED 4 TO 32 1/4 FOLLOWING IMPROVED FISCAL FIRSTQUARTER EARNINGS THE DALLAS DESIGNER AND MAKER OF MEN'S APPAREL SAID NET INCOME FOR THE PERIOD ROSE TO 51 CENTS A SHARE FROM A YEAREARLIER EIGHT CENTS A SHARE NUCLEAR SUPPORT SERVICES INC ROSE 7/8 TO 5 AFTER REPORTING THAT FISCAL FIRSTQUARTER EARNINGS ROSE TO 13 CENTS A SHARE FROM A YEAREARLIER SIX CENTS A SHARE THE CAMPBELLTOWN PA COMPANY PROVIDES TECHNICAL PERSONNEL TO ELECTRIC UTILITIES TETRA TECH PASADENA CALIF IMPROVED 1 TO 19 3/4 THE PROVIDER OF ENVIRONMENTAL ENGINEERING AND CONSULTING SERVICES REPORTED FISCAL FIRSTQUARTER PERSHARE EARNINGS OF 17 CENTS UP FROM A YEAREARLIER 13 CENTS BUT SANTA CRUZ OPERATION A SANTA CRUZ CALIF NETWORKING AND SOFTWARE CONCERN DROPPED 3/4 TO 5 1/8 AFTER SAYING LATE TUESDAY THAT ITS FISCAL FIRSTQUARTER PERSHARE NET INCOME FELL TO FIVE CENTS FROM 13 CENTS GOLDMAN SACHS DOWNGRADED SANTA CRUZ TO MARKET PERFORMER FROM MODERATE OUTPERFORMER AND LOWERED ITS FISCAL1994 EARNINGS ESTIMATE KERR GROUP LOS ANGELES JUMPED 7/8 TO 9 1/2 ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IT PLANS TO RELOCATE ITS HOMECANNING LIDMANUFACTURING OPERATIONS TO JACKSON TENN PERMANENTLY CEASING OPERATIONS IN ITS LEASED FACILITY IN CHICAGO KERR SAID IT WILL RECORD A 1993 FOURTHQUARTER RESERVE OF 75 CENTS A SHARE RELATED TO THE RELOCATION IMPROVED EFFICIENCY DUE TO THE MOVE SHOULD RESULT IN PRETAX PERYEAR COST REDUCTIONS OF ABOUT 50 CENTS A SHARE ORTHOLOGIC GAINED 1 TO 5 7/8 THE PHOENIX COMPANY SAID IT HAS RECEIVED AN APPROVABLE LETTER FROM THE FOOD AND DRUG ADMINISTRATION REGARDING ITS PREMARKET APPROVAL APPLICATION FOR ORTHOLOGIC 1000 A NONINVASIVE ELECTRONIC BONEGROWTH STIMULATOR FOR TREATMENT OF FRACTURES DECKERS OUTDOOR CARPINTERIA CALIF CLIMBED 2 TO 17 THE COMPANY SAID IT FORMED A JOINT VENTURE WITH ROBERT EASON OWNER OF THE US DISTRIBUTION RIGHTS FOR HEIRLOOMS A LINE OF CASUAL APPAREL TO SELL THE LINE THROUGH DECKERS' DISTRIBUTION CHANNELS TERMS WEREN'T DISCLOSED SMITH BARNEY SHEARSON UPGRADED DECKERS TO OUTPERFORM FROM NEUTRAL RECOTON ADVANCED 1 1/8 TO 24 3/8 FOLLOWING AN INITIAL BUY RECOMMENDATION FROM FURMAN SELZ THE LONG ISLAND CITY NY COMPANY MAKES AND MARKETS A LINE OF ACCESSORIES FOR CONSUMER ELECTRONICS EQUIPMENT TRANS LEASING INTERNATIONAL FELL 1 3/16 TO 4 3/16 AFTER SAYING ITS TALKS ENDED ON A PROPOSED BUSINESS COMBINATION WITH AN UNIDENTIFIED PUBLICLY TRADED FINANCIALSERVICES COMPANY TRANS LEASING NORTHBROOK ILL LEASES MEDICAL SCIENTIFIC AND OTHER EQUIPMENT TO HEALTHCARE PROVIDERS LCS INDUSTRIES GAINED 1 TO 8 THE CLIFTON NJ COMPANY SAID IT REACHED A 55 MILLION AGREEMENT TO DESIGN DEVELOP AND IMPLEMENT A MARKETING DATABASE FOR A MAJOR NONUS TELECOMMUNICATIONS COMPANY EXTENDING THROUGH FEBRUARY 1995 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 106 WHILE 18 HIT NEW LOWS EXPECTATIONS OF GOOD EARNINGS FOR SMALLER ISSUES HELPED THEM TO ADVANCE AS DID THE BIG BOARD'S LATE MOVE INTO RECORD TERRITORY SAID PAUL STANTON HEAD OF OVERTHECOUNTER TRADING AT JOHNSON LEMON MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER ADDED THAT MARKET PLAYERS ARE BEGINNING TO TAKE MUCH MORE OF A CASEBYCASE APPROACH TO INVESTING RATHER THAN LETTING BIGGER STOCKS DICTATE ATTITUDES TOWARD AN ENTIRE GROUP IN PAST QUARTERS FARRELL SAID ONE EARNINGS DISASTER IN A GROUP COULD HUMBLE THE WHOLE SECTOR HOWEVER IF YOU LOOK AT THE COMPANIES THAT GOT HIT TODAY SUCH AS INTEL INCREASINGLY AS THE LARGECAP STOCKS FALL BY THE WAYSIDE THE SMALLCAPS LOOK BETTER EARNINGS FORECASTS FOR SMALLER COMPANIES HAVE BEEN MORE MODEST FARRELL SAID WHILE WALL STREET HAS HAD VERY HIGH EXPECTATIONS FOR THE LARGER COMPANIES BECAUSE OF THE ECONOMIC RECOVERY THE COMBINATION OF STRONG EARNINGS GROWTH WITHOUT TREMENDOUS PRICETOEARNINGS EXPANSION SHOULD KEEP THE SMALLER ISSUES THAT SHOW SUPERIOR EARNINGS GROWTH AHEAD OF THE GAME THIS YEAR FARRELL SAID 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 9401200139 940120 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY'S BIG METALWORKERS UNION THREATENED WIDESPREAD WALKOUTS IF EMPLOYERS CONTINUED TO INSIST ON LOWER LABOR COSTS IN DEADLOCKED TALKS IG METALL'S CONTRACT WITH EMPLOYERS EXPIRED DEC 31 IN NEGOTIATIONS APPLYING TO MOST OF GERMANY'S 38 MILLION METAL WORKERS THE GESAMTMETALL EMPLOYERS GROUP REJECTED UNION DEMANDS FOR A 6 WAGE INCREASE OR 2 WITH JOB GUARANTEES GESAMTMETALL WANTS TO SECURE JOBS BY CUTTING COSTS THROUGH WAGE FREEZES MORE FLEXIBLE SHIFTS AND CUTS IN VACATION DAYS AND BONUSES THE UNION VOWED TO STRIKE ONCE THE GRACE PERIOD FOR THE TALKS EXPIRES JAN 28 BUT ANALYSTS TERMED THE UNION WARNING HOLLOW GIVEN GERMANY'S WORSENING UNEMPLOYMENT AND ITS AILING AUTOMOTIVE AND MACHINERY SECTORS AS WELL AS THE CHEMICAL WORKERS UNION'S AGREEMENT THIS MONTH TO A SUBINFLATION 2 WAGE INCREASE FOR 1994 CHANCELLOR HELMUT KOHL WAS SAID TO BACK A WAGE FREEZE FOR MILLIONS OF GERMAN PUBLIC SERVANTS WHOSE OETV UNION WILL SEEK A 4 RAISE IN TALKS THAT START TOMORROW IN THE CZECH REPUBLIC'S FIRST MAJOR CASE OF COMPUTER FRAUD AN EMPLOYEE OF THE CZECH SAVINGS BANK IN SOKOLOV WAS CONVICTED OF STEALING ABOUT 12 MILLION AND SENTENCED TO EIGHT YEARS IN PRISON A CZECH NEWSPAPER REPORTED MARTIN JANKU APPEALED SAYING HE ONLY MEANT TO EXPOSE THE BANK'S INADEQUATE SECURITY SYSTEM AFTER MOVING THE MONEY BY COMPUTER TO HIS OWN ACCOUNT IN THE BANK OVER NINE MONTHS HE WAS DETAINED WHEN HE TRIED TO MAKE A BIG WITHDRAWAL FROM A BRANCH AND WAS RECOGNIZED BY A TELLER WHO HAD MET HIM IN COMPUTER TRAINING HE RETURNED 1 MILLION BUT SAID 166666 WAS STOLEN FROM HIS CAR CITING CUTS IN RUSSIAN GOVERNMENT GRANTS THE MOSCOW LAB THAT HAS PRESERVED LENIN'S BODY FOR 70 YEARS IS OFFERING COMMERCIAL MORTUARY SERVICES INCLUDING MUMMIFICATION IN A VENTURE WITH AN UNDERTAKER THE CENTER FOR BIOLOGICAL STRUCTURES WILL PERFORM LONGTERM EMBALMING A SIXMONTH JOB FOR AT LEAST 250000 A BREATHTAKING SUM IN RUSSIA EVEN WITH THE CENTER'S FULL GUARANTEE AND POSTSALE INSPECTIONS EVERY TWO YEARS FORMER CLIENTS INCLUDED NOTABLE COMMUNISTS SUCH AS HO CHI MINH OF NORTH VIETNAM NOW THE CENTER SEES ITS MARKET AS RICH PEOPLE IN THE WEST AND THE US WHO WOULD LIKE TO PRESERVE THEMSELVES FOR THE FUTURE THE CHAIRMAN OF THE ITALIAN STATEOWNED ELECTRIC UTILITY ENTE NAZIONALE PER L'ENERGIA ELETTRICA FRANCO VIEZZOLI WAS ARRESTED IN A CRACKDOWN ON MOB INFILTRATION OF CONSTRUCTION PROJECTS IN THE SOUTHERN REGION OF CALABRIA THE COMPANY KNOWN AS ENEL IS ONE OF THE LARGEST IMPLICATED IN ITALY'S INVESTIGATION OF ORGANIZED CRIME MR VIEZZOLI WAS DETAINED IN ROME IN CONNECTION WITH ALLEGED RIGGING OF BIDS FOR A POWER PLANT AND 30 OTHER PEOPLE WERE ARRESTED INCLUDING ENEL OFFICIALS AND SUSPECTED UNDERWORLD FIGURES THE EUROPEAN UNION COMMISSION ADOPTED GUIDELINES FOR ENERGY INVESTMENT THROUGH THE YEAR 2000 AIMED AT EXPANDING OR IMPROVING DISTRIBUTION OF ELECTRICITY AND NATURAL GAS THROUGHOUT THE 12COUNTRY BLOC THE EU FORMERLY CALLED THE EUROPEAN COMMUNITY IS TRYING TO IMPROVE COMPETITIVENESS AND EMPLOYMENT IN THE ENERGY SECTOR AMONG PRIORITIES THE COMMISSION SAID SPENDING SHOULD FOCUS ON CONNECTIONS OF ISOLATED ELECTRICITY NETWORKS AND LINKS AMONG EU AND NONEU GRIDS IT ALSO CALLED FOR DELIVERING GAS TO UNSERVED REGIONS AND EXPANDING PIPELINE CAPACITIES SPENDING ON BASIC PUBLICWORKS PROJECTS IN MEXICO THIS YEAR WILL TOTAL ABOUT 16 BILLION UP 20 FROM LAST YEAR'S OUTLAYS THE INFRASTRUCTURE TOTAL INCLUDES 1115 BILLION IN PRIVATE INVESTMENT A 17 INCREASE FROM 1993 AND GOVERNMENT SPENDING OF 487 BILLION UP 24 OF THE PRIVATE SUM 40 WILL BE INVESTED IN TERMINALS BUSES AND CARGO TRUCKS OTHER PLANS INCLUDE NEW TOLL HIGHWAYS SEAPORT INSTALLATIONS AND IMPROVEMENTS IN AIRPORTS RAILWAYS AND TELECOMMUNICATIONS HIGHWAYS WILL GET ALMOST TWOTHIRDS OF THE PUBLICWORKS FUNDING TO MEET THIS YEAR'S ROADBUILDING GOAL OF 1488 MILES THE GOVERNMENT ALSO UNVEILED A MARCH BOND ISSUE OF 500 MILLION FOR INTERNATIONAL INVESTORS WITH PROCEEDS TO FINANCE MORE HIGHWAY WORK SWEDEN SAID THE NUMBER OF BUSINESS BANKRUPTCIES LAST YEAR DECREASED 12 TO 18731 FROM A YEAR EARLIER THE TOTAL REPRESENTS ONE FAILURE FOR EVERY 26 SWEDISH COMPANIES SECTORS HIT HARDEST WERE RESTAURANTS HOTELS REAL ESTATE AND CONSTRUCTION AN AIRPORT UPGRADE TO MEET GLOBAL STANDARDS AND AN INTERNATIONAL COMMERCIAL CENTER ARE PLANNED FOR BACAU ROMANIA 185 MILES NORTHEAST OF BUCHAREST GREAT WALL INDUSTRIAL CORP OF CHINA IS THE GENERAL CONTRACTOR ON THE 330 MILLION PROJECT WHICH COULD GENERATE 12000 JOBS 9401200138 940120 TECHNOLOGY & HEALTH FCC PLAN FAVORS ORBITING SATELLITES FOR DATA SERVICE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION PROPOSED RULES THAT CALL FOR LOWORBITING SATELLITES TO PROVIDE WORLDWIDE DATA AND TELEPHONE SERVICE THROUGH HANDHELD DEVICES THE FCC'S CHOICE FAVORED FIVE OF THE SIX COMPANIES THAT HAD APPLIED TO PROVIDE THE NEW SERVICE THEY ARE IRIDIUM INC A WASHINGTONBASED INTERNATIONAL CONSORTIUM OF COMPANIES LED BY MOTOROLA INC OF SCHAUMBURG ILL A UNIT OF CLEVELANDBASED TRW INC LORAL QUALCOMM SATELLITE SERVICES INC SEABROOK MD AND ELLIPSAT CORP AND CONSTELLATION COMMUNICATIONS INC BOTH BASED IN WASHINGTON DC THE COMMISSION'S DECISION WAS A BLOW TO THE SIXTH COMPANY AMERICAN MOBILE SATELLITE CORP OF RESTON VA WHICH PROPOSED USING A STATIONARY SATELLITE FOR THE SYSTEM THE COMPANY WHICH WAS PREVIOUSLY AWARDED RADIO SPECTRUM FOR SATELLITE SERVICES IS OWNED BY MCCAW CELLULAR COUMMUNICATIONS INC GENERAL MOTORS CORP'S HUGHES COMMUNICATIONS INC AND PAGING GIANT MTEL CORP COMMISSION OFFICIALS COMPARED THE NEW SYSTEM TO A GLOBAL CELLULAR PHONE SYSTEM THAT COULD REACH ANYWHERE AND PROVIDE SUCH SERVICES AS DISASTER MANAGEMENT AND ENVIRONMENTAL MONITORING AS WELL AS PAGING FACSIMILE TRANSMISSION AND CARGO TRACKING BY ITS ACTION THE AGENCY DECIDED TO USE SATELLITES THAT WILL ORBIT THE EARTH AT A LOW ALTITUDE OF ABOUT 600 MILES MOST COMMERCIAL COMMUNICATIONS SATELLITES CURRENTLY IN USE ARE IN FIXED POSITIONS ABOUT 22000 MILES FROM THE EARTH THE FCC WILL TAKE PUBLIC COMMENTS ON THE PROPOSED RULES UNTIL MAY 5 AND WILL THEN ISSUE FINAL TECHNICAL FINANCIAL AND CONSTRUCTION REQUIREMENTS THE COMMISSION SAID IT EXPECTS TO LICENSE AT LEAST TWO SYSTEMS WHICH WOULD HAVE TO MEET THOSE REQUIREMENTS THE PROPOSED RULES ALSO INCLUDED SUGGESTED WAYS OF APPORTIONING THE RADIO SPECTRUM FOR COMPANIES TO OFFER THESE SERVICES THE MOBILE SATELLITE SYSTEMS ARE EXPECTED TO BECOME PART OF THE NATIONAL INFORMATION SUPERHIGHWAY IN THE US THE FCC SAID THE NEW SYSTEM WHICH WOULD INTERCONNECT WITH LANDBASED TELEPHONE AND CELLULAR SYSTEMS WOULD ENHANCE COMPETITION IN CURRENT CELLULAR TELEPHONE MARKETS COMMISSION OFFICIALS ALSO PREDICTED THEY WOULD GIVE AMERICANS IN RURAL AREAS THAT AREN'T LINKED TO A BROAD COMMUNICATIONS INFRASTRUCTURE ACCESS TO ONE SYSTEMS LIKE IRIDIUM'S WILL BRING COMMUNICATIONS TO PLACES WHERE COMMUNICATIONS NEVER EXISTED BEFORE ALLOWING COUNTRIES TO LEAPFROG INTO THE 21ST CENTURY SAID JOHN WINDOLPH A SPOKESMAN FOR MOTOROLA ALTHOUGH MOBILE SATELLITE SYSTEMS WILL MAKE EVERYTHING FROM TELEPHONE SERVICE TO BUSINESS COMMUNICATIONS SERVICES AVAILABLE IN OTHER COUNTRIES THEY'LL REQUIRE THE US TO COORDINATE WITH OTHER COUNTRIES ON WHAT THEY WANT LICENSED WITHIN THEIR BORDERS 9401200137 940120 WHO'S NEWS CHIA CITICORP'S HEAD OF CONSUMER BANKING MADE A VICE CHAIRMAN NEW YORK CITICORP NAMED PEIYUAN CHIA 54 YEARS OLD A VICE CHAIRMAN OF THE BANKING COMPANY BRINGING THE NUMBER OF VICE CHAIRMEN TO FOUR THE MOVE WAS NOT SURPRISING GIVEN MR CHIA'S ROLE AS THE BANK'S SENIOR EXECUTIVE RESPONSIBLE FOR CONSUMER BANKING MR CHIA A DIRECTOR OF CITICORP AND CITIBANK SINCE APRIL 1993 IS ONE OF SIX MEMBERS OF THE MANAGEMENT COMMITTEE THE COMPANY'S SENIOR POLICY BODY HE HAS BEEN WITH THE COMPANY FOR 20 YEARS AND WAS ONE OF A GROUP OF MARKETING EXECUTIVES HIRED FROM GENERAL FOODS CORP TO HELP BUILD A CONSUMER/CREDIT CARD OPERATION THE HONG KONG NATIVE WHO COMES FROM A PROMINENT SHANGHAI BANKING FAMILY HAS OVERSIGHT RESPONSIBILITY FOR CITIBANK'S GLOBAL CONSUMER BUSINESSES IN MORE THAN 40 COUNTRIES AND FOR CITIBANK'S CORPORATE BANKING ACTIVITIES IN ASIA CITICORP SAID MR CHIA EARNED HIS BACHELOR'S DEGREE IN ECONOMICS FROM TAIWAN'S TUNGHAI UNIVERSITY AND A MASTER'S IN BUSINESS ADMINISTRATION FROM THE WHARTON SCHOOL UNIVERSITY OF PENNSYLVANIA 9401200136 940120 WHO'S NEWS CIRCUIT CITY STORES INC CIRCUIT CITY STORES INC RICHMOND VA RICHARD S BIRNBAUM 40 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF OPERATIONS AND MARKETING MR BIRNBAUM FORMERLY SENIOR VICE PRESIDENT MARKETING SUCCEEDS BERNARD W ANDREWS 52 WHO LEFT TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF MONTGOMERY WARD & CO'S FLAGSHIP RETAIL DIVISION 9401200135 940120 HEALTH NURSES DECRY COSTCUTTING PLAN THAT USES AIDES TO DO MORE JOBS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN HOSPITAL EXECUTIVES WANT COSTCUTTING ADVICE THEY INCREASINGLY TURN TO THE CONSULTING FIRM OF APM INC BUT TO MANY NURSES APM IS AN ENEMY AT ISSUE IS ONE OF APM'S MOST FREQUENT RECOMMENDATIONS THAT HOSPITALS CHANGE THEIR NURSING SKILLS MIX TO RELY LESS ON HIGHERPAID AND BETTERTRAINED NURSES AND MORE ON LOWERPAID AIDES TO PERFORM ROUTINE TASKS APM CLAIMS IT CAN SAVE MONEY WITHOUT AFFECTING PATIENT CARE MANY NURSES DISAGREE WE VIEW APM AS THE NEMESIS OF HEALTH CARE SAYS ROSE ANN DEMORO PRESIDENT OF THE CALIFORNIA NURSES ASSOCIATION THEY'RE OUT SELLING COSTSAVINGS MODELS THAT HAVE BEEN USED IN THE INDUSTRIAL SECTOR THE PROBLEM IS THEY LOOK AT THE PATIENT AS A BUNCH OF PARTS RATHER THAN AS A WHOLE HUMAN BEING APM CALLS THE CRITICISM UNFAIR IF DONE PROPERLY DECREASING RELIANCE ON NURSES SHOULDN'T HURT PATIENT CARE SAYS JAMES KAGEN MANAGING PARTNER OF APM'S NEW YORK OFFICE THIS IS A TOUGH ISSUE HE CONCEDES WE ARE TAKING OUT LAYERS AND WE GET NOISE FROM PEOPLE ABOUT IT BUT IF YOU DON'T HAVE NOISE YOU AREN'T DOING THE JOB THE SHOWDOWN TYPIFIES THE TURMOIL ASSOCIATED WITH HOSPITALS' EFFICIENCY CAMPAIGNS MANY OF AMERICA'S 5300 HOSPITALS SAY THEY MUST TRIM EXPENSES AS THEY LOSE BUSINESS TO OUTPATIENT SERVICES AND COPE WITH INSURERS' DEMANDS FOR DISCOUNTS TO HOSPITALS' PRICES BUT COST CUTTING CAN BRING LABOR CLASHES AND A HAIL OF QUESTIONS ABOUT WHETHER PATIENT CARE IS AT RISK THE AMERICAN NURSES ASSOCIATION SAYS RECENT STUDIES HAVE FOUND THAT PATIENTS FARE BEST AT HOSPITALS WITH THE MOST NURSES SUGGESTING THAT CARE MIGHT SUFFER IF NURSES' JOBS ARE CUT BUT MR KAGEN SAYS THAT FACILITIES IMPLEMENTING APM'S CUTS USUALLY SEE IMPROVEMENTS IN SUCH QUALITY MEASURES AS WAITING TIMES OR PATIENT SATISFACTION HE SAYS MOST JOBS CAN BE CUT THROUGH ATTRITION WITHOUT LAYOFFS BASED IN NEW YORK APM HAS BECOME ONE OF THE HEAVYWEIGHTS IN THE CROWDED HOSPITALCONSULTING FIELD SINCE 1987 APM SAYS IT HAS HELPED MORE THAN 80 HOSPITALS TRIM A TOTAL OF AT LEAST 1 BILLION IN EXPENSES TYPICALLY AN APM CONSULTING TEAM SPENDS NINE MONTHS OR SO AT A HOSPITAL DEVELOPING COSTCUTTING RECOMMENDATIONS IN AREAS RANGING FROM BILLCOLLECTING TO COMPUTER OPERATIONS APM'S BIGGEST TARGET IS USUALLY LABOR COSTS NOTABLY NURSING AT MANY HOSPITALS 75 OR MORE OF PATIENT CARE IS PROVIDED BY REGISTERED NURSES WHO HAVE AT LEAST TWO TO FOUR YEARS OF TRAINING THEY MAKE APPRECIABLY MORE THAN LICENSED PRACTICAL NURSES WHO GENERALLY HAVE 12 TO 14 MONTHS OF TRAINING AND OFTEN MAKE DOUBLE THE PAY OF UNLICENSED AIDES OR ORDERLIES BECAUSE OF THE COST DIFFERENTIALS APM ADVISES HOSPITALS TO REDESIGN WORK TEAMS TO RELY MORE ON LOWERPAID AIDES FOR SIMPLE DUTIES LIKE MAKING BEDS THIS WORKPLACE REENGINEERING CAN MEAN BIG SAVINGS IN CALIFORNIA HOSPITALS CAN SAVE AS MUCH AS 25000 A YEAR FOR EACH NURSE'S JOB CONVERTED TO AN AIDE'S JOB STANFORD UNIVERSITY HOSPITAL IN CALIFORNIA ESTIMATES THAT IT HAS SAVED 25 MILLION IN NURSING COSTS SINCE IT HIRED APM IN 1989 SHARON FLYNN HOLLANDER DIRECTOR OF NURSING SAYS THAT BEFORE APM SHOWED UP 80 TO 90 OF THE HOSPITAL'S PATIENTCARE EMPLOYEES WERE NURSES THE FIGURE IS NOW LESS THAN 60 SHE SAYS AT MANY HOSPITALS NURSES' TIME CAN BE CHEWED UP BY SUCH LOWSKILL JOBS AS GIVING BATHS OR FEEDING PATIENTS APM SAYS IT ADVOCATES PUTTING FEWER NURSES ON A PATIENT WARD AND HAVING THEM FOCUS ON HIGHSKILL CARE SUCH AS INSERTING CATHETERS OR ADMINISTERING DRUGS LOWSKILL TASKS WOULD BE SWITCHED TO UNLICENSED AIDES UNDER THE NURSES' SUPERVISION USING THIS TEAM APPROACH VANDERBILT UNIVERSITY HOSPITAL IN NASHVILLE TENN CUT ITS NURSING STAFF BY 21 TO 627 FULLTIME JOBS IN THE PAST FIVE YEARS IT HAS HIRED DOZENS OF PATIENTCARE ASSISTANTS TYPICALLY HIGH SCHOOL GRADUATES WHO HAVE WORKED IN A HOSPITAL AFTER SEVERAL WEEKS OF TRAINING THEY ARE ASSIGNED SIMPLE DUTIES CHANGES LIKE THESE LET NURSES SPEND MORE TIME DOING WHAT THEY ARE TRAINED BEST TO DO SAYS MR KAGEN A LOT OF OUR REENGINEERING COMES ABOUT BECAUSE WE ASK NURSES WHAT THEY WANT BUT SOME NURSING GROUPS SAY EVEN BASIC TASKS SHOULDN'T BE ASSIGNED TO UNLICENSED HELP WHEN YOU'RE GIVING A BATH TO A PATIENT YOU CAN CHECK THEIR SKIN FOR ULCERS OR SEE IF THEY ARE DEHYDRATED SAYS MARGARET BERRY PRESIDENT OF THE MASSACHUSETTS NURSES ASSOCIATION THAT'S WHERE CLINICAL JUDGMENTS ARE MADE YOU CAN'T JUST HAVE AN RN GO IN TO SPEND TWO MINUTES WITH A PATIENT AND MAKE AN ASSESSMENT IN BOSTON CARNEY HOSPITAL HIRED APM IN 1992 TO CREATE A COSTCUTTING PROGRAM USING THE TEAM APPROACH BUT DELAYED CHANGES AFTER NURSES PROTESTED EILEEN NORTON A NURSE AT CARNEY SAYS SHE WAS CONCERNED ABOUT PATIENT CARE BUT ADDS IT'S ALSO ABOUT JOBS MORE CONTROVERSY MAY LIE AHEAD AS SOME HOSPITALS TRY TO EXPAND THE WORK THAT LOWERPAID AIDES CAN PERFORM AMONG THOSE TASKS ARE DRAWING BLOOD GATHERING DATA FOR MEDICAL CHARTS OR BANDAGING INCISIONS AFTER SURGERY DUTIES THAT NURSES MAY NOT WANT TO LEAVE IN THE HANDS OF LESSTRAINED PERSONNEL WE'VE LEARNED THAT GOING VERY SLOWLY WORKED WELL SAYS MARY BOOSALIS SENIOR VICE PRESIDENT OPERATIONS AT MIAMI VALLEY HOSPITAL IN DAYTON OHIO HER HOSPITAL HAS BEEN PHASING IN SKILLMIX CHANGES FOR TWO YEARS AND EXPECTS TO FINISH THIS SUMMER THERE'S A MASSIVE AMOUNT OF EDUCATION INVOLVED MS BOOSALIS SAYS 9401200134 940120 WHO'S NEWS MUTUAL OF NEW YORK ELECTS FOTI PRESIDENT NEW YORK MUTUAL OF NEW YORK SAID ITS BOARD ELECTED SAMUEL J FOTI PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1991 MR FOTI HAS BEEN EXECUTIVE VICE PRESIDENT AND HEAD OF MONY'S INSURANCE OPERATIONS HE WAS ELECTED TO THE COMPANY'S BOARD OF TRUSTEES IN 1993 MR FOTI WAS NAMED SENIOR VICE PRESIDENT IN MAY 1989 AND CHIEF MARKETING OFFICER SOON AFTER HE JOINED MONY IN 1988 AS NATIONAL DIRECTOR OF AGENCY OPERATIONS FROM 1974 TO 1988 MR FOTI WAS WITH METROPOLITAN LIFE INSURANCE CO MR FOTI WILL BE RESPONSIBLE FOR MONY'S LIFE INSURANCE DISABILITY INCOME AND ASSET ACCUMULATION BUSINESSES CORPORATE STRATEGY AND A NEW INTERNATIONAL DEVELOPMENT AND OPERATIONS BUSINESS 9401200133 940120 WHO'S NEWS FIRST BANK SYSTEM INC FIRST BANK SYSTEM INC MINNEAPOLIS DELBERT W JOHNSON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PIONEER METAL FINISHING CO A DIVISION OF SAFEGUARD SCIENTIFICS INC WAS NAMED A DIRECTOR OF THIS REGIONAL BANK HOLDING COMPANY INCREASING THE BOARD TO 17 MEMBERS 9401200132 940120 FDA WANTS AN AUDIT OF SOME APPLICATIONS MADE BY CR BARD MURRAY HILL NJ CR BARD INC ON ITS WAY TO RESOLVING REMAINING FOOD AND DRUG ADMINISTRATION SANCTIONS STEMMING FROM PROBLEMS WITH ITS HEARTSURGERY INSTRUMENTS SAID THE FDA WANTS NEW INTERNAL AUDITS OF CERTAIN MEDICALPRODUCT APPLICATIONS ONLY AFTER THE INTERNAL REVIEW WILL THE FDA CONSIDER THE PENDING APPROVALS OF PRODUCTS MADE BY BARD'S USCI DIVISION THE COMPANY SAID THE USCI DIVISION MAKES THE BALLOON ANGIOPLASTY DEVICES WIRES WITH BALLOONLIKE TOPS USED TO OPEN CLOGGED ARTERIES BARD AGREED IN OCTOBER TO PAY 61 MILLION TO SETTLE CRIMINAL CHARGES RELATED TO THE SALE OF DEFECTIVE HEART CATHETERS AMONG OTHER ALLEGATIONS BARD WAS CHARGED WITH MAKING FALSE STATEMENTS TO REGULATORS ABOUT THE SAFETY OF ITS PRODUCTS BARD'S CHIEF FINANCIAL OFFICER WILLIAM C BOPP SAID THE COMPANY MUST ENSURE THAT INFORMATION IN USCI'S APPLICATIONS ACCURATELY REFLECTS THE COMPANY'S DATA THE AUDIT WILL APPLY TO SEVERAL BALLOONANGIOPLASTY CATHETERS AND RELATED PRODUCTS AND SHOULD TAKE LESS THAN 60 DAYS HE SAID THE DELAY HE ADDED SHOULDN'T MATERIALLY AFFECT THE COMPANY'S EARNINGS THIS YEAR OR NEXT NOTING THAT THE FDA APPROVED TWO NEW BARD HEART CATHETERS THIS MONTH ANALYSTS FREDERICK A WISE OF BEAR STEARNS & CO AND DAVID LOTHSON OF PAINEWEBBER CO AGREED THAT THE LATEST ACTION SHOULDN'T SIGNIFICANTLY HURT THE COMPANY'S OUTLOOK IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BARD'S SHARES CLOSED AT 2950 OFF 875 CENTS 9401200131 940120 FORD'S BID TO REVAMP POWERTRAINS IS VISIBLE IN NEW TRANSMISSION STERLING HEIGHTS MICH FORD MOTOR CO UNVEILED A HIGHTECH FRONTDRIVE TRANSMISSION MOVING CLOSER TO SOLVING ONE OF ITS PROFITABILITY PROBLEMS THE TRANSMISSION WILL BE USED IN CERTAIN FORD TAURUS AND MERCURY SABLE MODELS AND IN THE NEXTGENERATION LINCOLN CONTINENTAL THE AX4N TRANSMISSION WHICH COST 680 MILLION TO DEVELOP INCLUDING COSTS OF RETOOLING THE FACTORY HERE WILL APPEAR IN VEHICLES LATER THIS YEAR AND FORD WILL EVENTUALLY BUILD 550000 OF THEM A YEAR THE TRANSMISSION IS PART OF A 5 BILLION OVERHAUL LAUNCHED IN 1989 THE REVAMPING INVOLVES FIVE ENGINES AND FIVE TRANSMISSIONS INCLUDING A NEW 25LITER V6 TO BE UNVEILED NEXT MONTH AND A FAMILY OF TRUCK ENGINES TO DEBUT NEXT YEAR FORD HAS BEEN ONE OF THE LAST OF THE WORLD'S MAJOR AUTO MAKERS TO OVERHAUL ITS ENGINES AND TRANSMISSIONS AND INDUSTRY ANALYSTS AND CONSULTANTS SAY THAT'S ONE REASON FORD HAS HAD TO SPEND MUCH MORE THAN ITS RIVALS ON MARKETING ITS CARS IN THE 1980S FORD WASN'T VERY RIGOROUS IN INVESTING IN POWERTRAINS AND THEY BEGAN TO FALL BEHIND SAYS CHRISTOPHER CEDERGREN AUTOPACIFIC GROUP INC'S AUTO ANALYST IT HURT THEIR CREDIBILITY AND IMAGE IN CERTAIN PRODUCT LINES BUT THE NEW ENGINES AND TRANSMISSIONS ARE EXPECTED TO CHANGE ALL THAT INDUSTRY EXPERTS SAY BY THE END OF THE DECADE THEIR POWERTRAINS WILL BE AT PARITY WITH THE BEST IN THE INDUSTRY SAYS JEFF SINCLAIR A MCKINSEY & CO CONSULTANT TO THE AUTO INDUSTRY HE SAYS THIS WILL ALLOW FORD TO CUT BACK ON PROMOTION EXPENSES AND REAP HIGHER REVENUES PER VEHICLE FORD'S AUTOMATIC TRANSMISSIONS PARTICULARLY HAVE BEEN A WEAK SPOT THEY TENDED TO BE CLUNKY LOUD AND JERKY WHEN SHIFTING SOME INDUSTRY EXPERTS RATE FORD'S POWERTRAINS AMONG THE WORST IN THE INDUSTRY 9401200130 940120 WHO'S NEWS NEW YORK FED ELECTS JOHNSON AND FELDMAN TO TERMS ON BOARD NEW YORK THE FEDERAL RESERVE BANK OF NEW YORK ELECTED J WILLIAM JOHNSON AND SANDRA FELDMAN TO SERVE THREEYEAR TERMS ON THE NINEMEMBER BOARD OF THIS BANK THE NEW YORK ARM OF THE NATION'S CENTRAL BANK MR JOHNSON 52 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIRST NATIONAL BANK OF LONG ISLAND IN GLEN HEAD NY MS FELDMAN 54 IS PRESIDENT OF THE UNITED FEDERATION OF TEACHERS IN NEW YORK THEY WERE ELECTED BY THE MEMBER BANKS IN THE SECOND FEDERAL RESERVE DISTRICT TO SERVE THROUGH DEC 31 1996 MR JOHNSON SUCCEEDS BARBARA HARDING CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PHILLIPSBURG NATIONAL BANK & TRUST CO IN PHILLIPSBURG NJ MS FELDMAN SUCCEEDS RAND V ARASKOG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITT CORP MR JOHNSON WILL SERVE AS A CLASS A DIRECTOR REPRESENTING THE BANKING COMMUNITY AND MS FELDMAN A CLASS B DIRECTOR REPRESENTING THE GENERAL PUBLIC SEPARATELY MAURICE R GREENBERG 68 WAS NAMED CHAIRMAN FOR 1994 BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MR GREENBERG CHAIRMAN OF AMERICAN INTERNATIONAL GROUP INC IN NEW YORK SUCCEEDS ELLEN V FUTTER WHO COMPLETED TWO THREEYEAR TERMS ON THE BOARD ALSO DAVID A HAMBURG 68 WAS APPOINTED BY THE BOARD OF GOVERNORS AS A CLASS C DIRECTOR DR HAMBURG SUCCEEDS MS FUTTER AS A DIRECTOR DR HAMBURG IS PRESIDENT OF CARNEGIE CORP IN NEW YORK AND WILL SERVE A THREEYEAR TERM ON THE BOARD 9401200129 940120 PEPSICO PLANS TO INVEST IN CZECH REPUBLIC SLOVAKIA PRAGUE VOWING TO BECOME THE BEVERAGE LEADER OF EASTERN EUROPE BY THE TURN OF THE CENTURY PEPSICOLA INTERNATIONAL ANNOUNCED PLANS TO INVEST MORE THAN 115 MILLION IN CZECH REPUBLIC AND SLOVAKIA OVER THE NEXT FIVE YEARS THE MOVE COMES IN THE WAKE OF SIMILAR EXPANSIONS THAT THE UNIT'S PARENT COMPANY PEPSICO INC HAS LAUNCHED OVER RECENT YEARS IN POLAND HUNGARY AND PARTS OF RUSSIA PUTTING THE COMPANY'S TOTAL COMMITMENT TO THE REGION AT WELL OVER 1 BILLION ABOUT HALF OF THE 85 MILLION PEPSICO HAS EARMARKED FOR EXPANSION IN CZECH REPUBLIC WILL BE SPENT TO OVERHAUL A MANUFACTURING AND BOTTLING PLANT HERE WORK ON THE BUILDING BEGAN EARLY THIS MONTH AND IS EXPECTED TO BE COMPLETED BY YEAR END THE REST OF THE MONEY WILL GO TOWARD BUILDING A NEW SALES AND DISTRIBUTION NETWORK AND WILL INCLUDE THE HIRING AND TRAINING OF 500 NEW EMPLOYEES IN SLOVAKIA PEPSICO SAID IT PLANS TO SPEND ABOUT 30 MILLION OVER FIVE YEARS MOST OF IT ON 200 NEW JOBS AND ON A NETWORK OF SIX REGIONAL DISTRIBUTION CENTERS AND WAREHOUSES 9401200128 940120 WHO'S NEWS ARGENTBANK ARGENTBANK THIBODAUX LA JAMES R PELTIER 63 YEARS OLD WAS NAMED CHAIRMAN OF THIS BANK DR PELTIER AN ORAL AND MAXILLOFACIAL SURGEON SUCCEEDS HIS BROTHER DONALD L PELTIER 67 WHO IS RETIRING BUT WILL REMAIN A DIRECTOR 9401200127 940120 HEARD ON THE STREET CALIFORNIA STOCKS ARE BEGINNING TO GAIN MORE ATTENTION BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL MONDAY'S EARTHQUAKE DID ONLY MODEST DAMAGE TO STOCK PRICES OF COMPANIES DOING BUSINESS IN CALIFORNIA MARKET LORE SAYS THAT'S A GOOD OMEN WHEN A DEPRESSED STOCK GROUP NO LONGER PLUNGES ON BAD NEWS A RALLY IS AT HAND EVEN BEFORE THE QUAKE CALIFORNIADEPENDENT STOCKS WERE ON THEIR KNEES THE GOLDEN STATE GOT HIT HARDER THAN MOST BY THE RECESSION OF 19901991 AND ITS ECONOMY STAYED FLABBY WHILE MOST OF THE COUNTRY GAINED STRENGTH BUT NOW SOME RESPECTED MARKET VETERANS SAY CALIFORNIA IS BEGINNING TO RECOVER AND INVESTORS SHOULD CONSIDER PUTTING SOME MONEY THERE CALIFORNIA IS NOT DEAD FOREVER SAYS JOHN ROGERS PRESIDENT OF ARIEL CAPITAL MANAGEMENT IN CHICAGO INVESTORS HAVE BEEN BEHAVING AS IF EVERYONE IS GOING TO FLEE AND LEAVE THE PLACE AN EMPTY BEACH THE CHICAGOAN'S FAVORITE CALIFORNIA STOCK IS LONGS DRUG STORES WHICH HAS A HEAVY CONCENTRATION OF STORES IN CALIFORNIA AND HAWAII LONGS HAS VERY GOOD LOCATIONS AND OWNS A LOT OF THE REAL ESTATE UNDER ITS STORES MR ROGERS SAYS IT HAS A ROCKSOLID BALANCE SHEET WITH NO LONGTERM DEBT I'VE BEEN BUYING MORE AND MORE AS IT GETS CHEAPER AND CHEAPER THIS MONTH GOLDMAN SACHS ISSUED A MAJOR REPORT CALLED CALIFORNIA DREAMIN' SALOMON BROTHERS ISSUED ONE CALLED CALIFORNIA IS TURNING BOTH BROKERAGE HOUSES SAY THEY SEE EARLY SIGNS OF A RECOVERY THEY HINT THAT PEOPLE WHO AGREE CAN SCOOP UP BARGAINS BEFORE IT BECOMES OBVIOUS TO THE VAST HERD OF INVESTORS THAT CALIFORNIA IS MAKING A COMEBACK THE STOCKS THEY RECOMMEND AREN'T NECESSARILY BASED IN CALIFORNIA BUT DO GET A SIGNIFICANT PORTION OF THEIR REVENUE THERE ACCORDING TO GOLDMAN'S REPORT WRITTEN BY ABBY JOSEPH COHEN AND EDWARD F MCKELVEY CALIFORNIABASED RETAILERS ARE REPORTING AN UPTURN IN SALES AND SOME HOME BUILDERS AND SERVICE PROVIDERS SEE GLIMMERS OF IMPROVEMENT YET MOST BROADBASED INDICATORS SHOW LITTLE LIFE YET SO CALIFORNIA INVESTMENTS ARE NOT FOR THE SHORTSIGHTED OR FAINT OF HEART NINE CALIFORNIARECOVERY PLAYS MAKE GOLDMAN'S OFFICIAL RECOMMENDED LIST ALASKA AIR GROUP BASED IN SEATTLE GETS ABOUT HALF ITS REVENUE IN CALIFORNIA THE FIRM NOTES AND WE EXPECT AIR TRAVEL IN GENERAL TO STRENGTHEN IN 1994 AMONG RETAILERS GOLDMAN RECOMMENDS ROSS STORES GOOD GUYS AND UTAHBASED SMITH'S FOOD & DRUG CENTERS IN BANKING GOLDMAN SAYS BANKAMERICA IS EXPECTED TO GENERATE EARNINGS GROWTH ON PAR WITH OTHER BANKS AND ABOVE THE S&P 500 YET TRADES AT A 40 DISCOUNT TO THE MARKET ON A P/E BASIS GOLDMAN ALSO LIKES HF AHMANSON A SAVINGS AND LOAN THAT MAKES COMMERCIAL AS WELL AS RESIDENTIAL LOANS ROUNDING OUT GOLDMAN'S TOP PICKS ARE BUILDER KAUFMAN & BROAD HOME REFINER ULTRAMAR BASED IN GREENWICH CONN AND MINIMILL OPERATOR BIRMINGHAM STEEL OF BIRMINGHAM ALA SALOMON'S REPORT BY DAVID HENSLEY AND DAVID SHULMAN POINTS TO A LITTLENOTICED DROPOFF IN LAYOFF ANNOUNCEMENTS BY CALIFORNIA AEROSPACE CONTRACTORS SINCE APRIL IT ALSO CITES A SLEW OF OTHER ECONOMIC INDICATORS TO SUPPORT ITS CONTENTION THAT THE STATE WILL EMERGE FROM ITS LONG RECESSION BY THE SECOND HALF OF 1994 SALOMON SUGGESTS A BASKET OF SOME TWO DOZEN CALIFORNIA STOCKS TO CONSIDER ONLY TWO OF THEM BANKAMERICA AND ENERGY PRODUCER UNOCAL MAKE THE FIRM'S OFFICIAL RECOMMENDED LIST AMONG SALOMON'S OTHER BUYRATED STOCKS THAT GET A SIGNIFICANT PORTION OF REVENUE FROM CALIFORNIA ARE THE AIRLINE SKYWEST OF UTAH HEALTHSERVICES PROVIDERS FOUNDATION HEALTH AND NATIONAL MEDICAL ENTERPRISES RETAILERS CARTER HAWLEY HALE DAYTON HUDSON OF MINNEAPOLIS AND MAY DEPARTMENT STORES OF ST LOUIS RESTAURANT OPERATOR CARL KARCHER ENTERPRISES AND THRIFTS GOLDEN WEST FINANCIAL GREAT WESTERN FINANCIAL AND SFFED LIKE GOLDMAN SACHS IT FAVORS KAUFMAN & BROAD HOME AND GOOD GUYS MR HENSLEY A SALOMON ECONOMIST SAYS THE EARTHQUAKE TERRIBLE AS ITS HUMAN CONSEQUENCES ARE PROBABLY WON'T HAVE A MAJOR EFFECT ON CALIFORNIA'S ECONOMY DISRUPTIONS OF COMMUTING AND TRUCKING AND SOME LOSS OF TOURISM WILL OCCUR HE SAYS BUT THERE WILL BE A LOT OF CONSTRUCTION AND REFURBISHING SALOMON BANK ANALYST JOHN LEONARD SAYS THAT AMONG MAJOR BANKS WELLS FARGO OFFERS THE PUREST PLAY ON THE CALIFORNIA ECONOMY BUT HE CONSIDERS WELLS FARGO'S STOCK A BIT PRICEY COMPARED WITH THAT OF BANKAMERICA THE LATTER BANK ALSO HAS MORE ROOM TO IMPROVE PROFIT THROUGH COST CUTTING HE SAYS OF COURSE NOT EVERYONE WANTS TO CLIMB ON CALIFORNIA'S BANDWAGON I DON'T SENSE THAT THINGS HAVE IMPROVED AT ALL SAYS JOHN CLELAND CHIEF INVESTMENT OFFICER AT SECURITY MANAGEMENT IN TOPEKA KAN MR CLELAND JUST RETURNED FROM A TRIP TO SAN DIEGO WHERE HE SAYS HE TALKED WITH PEOPLE FROM CLARINET PLAYERS TO CAB DRIVERS THEY CONTINUE TO BE CONCERNED ABOUT LOSING THEIR JOBS NOT PLANNING BIG PURCHASES OR LAUNCHING NEW VENTURES HE SAYS I WALKED THROUGH BALBOA PARK TO TRY TO GET A FEELING FOR THE NUMBER OF HOMELESS MY FEELING WAS THAT THERE WERE MORE THIS TIME THAN THERE WERE THE LAST TIME BUT SPRINGFIELD NJ ECONOMIST A GARY SHILLING THINKS CALIFORNIA IS GETTING BETTER HIS REALESTATE CLIENTS SAY THAT IN CALIFORNIA PROPERTY MARKETS THINGS HAVE FINALLY STABILIZED HE REPORTS THIS IS THE FIRST TIME IN TWO YEARS THAT THEY'VE BEEN ANYTHING BUT CREPEHANGERS AND CHARLES BIDERMAN A CALIFORNIA INVESTMENTNEWSLETTER WRITER WHO FOR THE PAST TWO YEARS HAD ADVOCATED SHORTSELLING BETTING AGAINST CALIFORNIA STOCKS HAS CHANGED HIS TUNE DECEMBER WAS THE FIRST POSITIVE MONTH IN QUITE A WHILE FOR CALIFORNIA RETAIL SALES HE SAYS UNFORTUNATELY MR BIDERMAN SAYS I DON'T KNOW WHAT YOU WOULD BUY THAT IS CHEAP THAT IS A CALIFORNIA PLAY THE BUILDERS ARE NOT UNDISCOVERED CERTAINLY WELLS FARGO YOU CAN'T SAY IS UNDISCOVERED BUT HE DOES LIKE UNILAB A BIG CLINICAL LABORATORY WITH A STRONGHOLD IN THE CALIFORNIA MARKET THE INSIDERS HAVE BEEN BUYING A TON OF STOCK HE SAYS THESE 10 STOCKS GET A LARGE PERCENTAGE OF THEIR REVENUES IN CALIFORNIA IF THE LONGDEPRESSED STATE REBOUNDS AS SOME ANALYSTS PREDICT THE STOCKS COULD ACHIEVE STRONG GAINS IF RIP VAN WINKLE SLEPT THROUGH 1994 HE WOULD WAKE UP TO FIND THE DOW JONES INDUSTRIAL AVERAGE NEARLY UNCHANGED ACCORDING TO A POLL OF 100 MONEY MANAGERS THE POLL WAS CONDUCTED DEC 15 TO JAN 4 BY ROPER FOR THE CONSULTING GROUP OF SMITH BARNEY SHEARSON ON AVERAGE THE MANAGERS EXPECT THE INDUSTRIAL AVERAGE TO END THIS YEAR AT 3797 WHICH WOULD CONSTITUTE A GAIN OF 11 FROM YEAR END BUT THE MANAGERS DON'T EXPECT A QUIET YEAR TWO THIRDS OF THEM ANTICIPATE A STOCKMARKET DECLINE SOME TIME DURING 1994 WHENEVER THE NEXT DECLINE COMES 46 OF MANAGERS EXPECT IT TO BE MILD A 10 DROP OR LESS 35 EXPECT IT TO BE MODERATE A 10 TO 15 DECLINE AND ONLY 8 EXPECT IT TO BE SEVERE MORE THAN A 15 FALL THE REST HAD NO OPINION 9401200126 940120 CHRYSLER WORKERS RECEIVE BOOST IN PROFIT SHARING HIGHLAND PARK MICH CHRYSLER CORP WILL PAY ITS MORE THAN 65000 UNITED AUTO WORKERS EMPLOYEES 4300 EACH IN PROFIT SHARING A RECORD FOR A US AUTO MAKER CHRYSLER SAID THE AUTO MAKER ALSO POSTED SHARP SALES GAINS IN EUROPE THE CHRYSLER PAYMENTS TO BE MADE FEB 11 ARE MORE THAN 10 TIMES LAST YEAR'S 421 PAYMENTS CHRYSLER'S 16000 NONUNION SALARIED EMPLOYEES ALSO WILL RECEIVE PROFITSHARING PAYMENTS CHRYSLER SAID FORD MOTOR CO ALSO IS EXPECTED TO MAKE A PROFITSHARING PAYMENT AS WORKERS BEGIN TO REAP THE BENEFITS OF THE AUTOMOTIVE INDUSTRY UPTURN SEPARATELY THE EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID CHRYSLER WAS ONE OF TWO MANUFACTURERS TO POST AN INCREASE IN EUROPEAN SALES IN 1993 THE EUROPEAN VEHICLE MARKET PLUNGED 151 TO 115 MILLION VEHICLES BUT CHRYSLER ALTHOUGH A MINUSCULE PLAYER INCREASED ITS SALES 394 TO 52610 VEHICLES CHRYSLER'S MARKET SHARE ROSE TO 05 FROM 03 THE YEAR BEFORE THE ROVER GROUP ALSO POSTED A SALES INCREASE FOR THE YEAR UP 97 FORD OF EUROPE AND GENERAL MOTORS CO BOTH POSTED DECREASES IN SALES FOR THE YEAR BUT INCREASES IN MARKET SHARE FORD'S MARKET SHARE ROSE TO 115 FROM 112 IN 1992 AND GM'S ROSE TO 13 FROM 125 9401200125 940120 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN MELVIN A ETTINGER 52 YEARS OLD WAS NAMED PRESIDENT OF VERDEPRINT TECHNOLOGIES A UNIT OF THIS BUSINESS MACHINES MAKER EFFECTIVE JAN 31 THE UNIT DEVELOPS AND MARKETS SILVERLESS DRY PROCESSING FILM FOR THE GRAPHIC ARTS AND PRINTING INDUSTRIES MR ETTINGER IS CURRENTLY CHIEF EXECUTIVE OFFICER OF POLYCHROME CORP A UNIT OF DIC AMERICAS INC 9401200124 940120 WHO'S NEWS PETROCORP INC PETROCORP INC HOUSTON JOHN A HILL CHAIRMAN OF FIRST RESERVE CORP AND DAVID H KENNEDY MANAGING DIRECTOR AT FIRST RESERVE WERE ELECTED TO THE BOARD OF THIS OIL AND GAS COMPANY THE ELECTION OF MR HILL 51 YEARS OLD AND MR KENNEDY 44 INCREASES THE BOARD TO 10 MEMBERS PETROCORP SAID THAT ITS USF&G CORP AND CIGNA CORP UNITS COMPLETED THEIR PREVIOUSLY ANNOUNCED SALE OF 1650000 PETROCORP COMMON SHARES TO FIRST RESERVE AT 1050 A SHARE GIVING FIRST RESERVE A 247 EQUITY INTEREST IN PETROCORP 9401200123 940120 WHO'S NEWS ROCKWELL INTERNATIONAL CORP ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF DON H DAVIS WAS NAMED AN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR DAVIS WILL SHARE THAT TITLE WITH KENT M BLACK WHO HAS SERVED IN THE POST SINCE 1989 MR DAVIS 54 YEARS OLD WAS PRESIDENT OF ROCKWELL'S ALLENBRADLEY INDUSTRIAL AUTOMATION UNIT IN MILWAUKEE HE WILL BE SUCCEEDED AS PRESIDENT BY JODIE K GLORE 46 THE UNIT'S SENIOR VICE PRESIDENT ROCKWELL ALSO HAS INTERESTS IN THE SPACE INDUSTRY ELECTRONICS AND PRINTING 9401200122 940120 CREDIT MARKETS JUNK BOND MARKET HEATS UP DESPITE COLD WAVE YIELD ON TREASURY'S LONG BOND CLIMBS TO 629 BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MUCH OF THE NATION WAS LOCKED IN A COLD WAVE YESTERDAY BUT THE JUNK BOND MARKET WAS HOT INVESTORS SNAPPED UP BONDS OFFERED BY FAMILY RESTAURANTS INC AND MFS COMMUNICATIONS CORP ONE SIGN OF INVESTOR WILLINGNESS TO TAKE GREATER RISKS IN THE JUNK BOND MARKET WAS THE WAY THEY SCRAMBLED TO BUY ZERO COUPON BONDS WHICH ACCOUNTED FOR PART OF BOTH OFFERINGS ZERO COUPON BONDS PAY NO INTEREST AND ARE SOLD AT A STEEP DISCOUNT TO FACE VALUE THEY ARE SENSITIVE TO INTEREST RATE MOVES AND ARE CONSIDERED A RISKIER BET THAN COUPONPAYING CORPORATE BONDS MFS RAISED 500 MILLION BY SELLING 10YEAR ZERO COUPON SENIOR NOTES FAMILY RESTAURANTS RAISED 450 MILLION BY SELLING 300 MILLION OF EIGHTYEAR SENIOR NOTES AND THE REMAINDER IN 10YEAR ZERO COUPON SENIOR NOTES MEANWHILE THE PRICE OF THE 30YEAR TREASURY BOND DROPPED 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 99 10/32 TO YIELD 629 COMPARED WITH 626 TUESDAY OTHER TREASURY MATURITIES WERE SLIGHTLY LOWER TO UNCHANGED BOTH OF THE JUNK DEALS WERE EXTREMELY WELLRECEIVED AND ONLY BEGAN TO TAP THE LARGE INVESTOR DEMAND WAITING TO POUNCE ON NEW ISSUES SYNDICATE OFFICIALS AND TRADERS SAID ONE SIGN OF STRONG DEMAND WAS SHARP PRICE INCREASES SHORTLY AFTER THE FAMILY RESTAURANT BONDS WERE PRICED ACCORDING TO KINGMAN PENNIMAN HEAD OF HIGHYIELD RESEARCH AT DUFF & PHELPS INVESTMENT RESEARCH CORP OF CHICAGO THE PRICE OF FAMILY'S EIGHTYEAR SENIOR NOTES JUMPED TWO POINTS TO 102 A GAIN OF 20 FOR A BOND WITH 1000 FACE VALUE THE PRICE OF THE FAMILY'S ZERO COUPON NOTES ROSE ABOUT 1 1/4 POINTS HE SAID THE EIGHTYEAR NOTES HAD BEEN SOLD AT PAR TO YIELD 975 BY THE END OF THE DAY THE NOTES WERE YIELDING 952 SINCE YIELDS DROP AS PRICES RISE THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE COMPANY ALSO RAISED 150 MILLION BY SELLING 10YEAR SENIOR SUBORDINATED DISCOUNT NOTES PRICED AT 72697 TO YIELD 10875 THE YIELD HAD DROPPED TO 10608 BY DAY'S END THE NOTES WHICH PAY NO COUPON FOR FOUR YEARS AND AREN'T CALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE DEBT WAS SOLD BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FAMILY RESTAURANTS IS THE FORMER RESTAURANT ENTERPRISES GROUP INC WHICH IS IN BANKRUPTCYCOURT PROCEEDINGS THE DEBT OFFERING IS PART OF THE COMPANY'S REORGANIZATION PLAN WHICH IS EXPECTED TO BE COMPLETED BY THE END OF THE MONTH AS PART OF THE REORGANIZATION APOLLO ADVISORS LP AND ITS AFFILIATES WILL PURCHASE A 406 STAKE FOR 65 MILLION AND GREEN EQUITY INVESTORS LP AND ITS AFFILIATES WILL PURCHASE A 188 STAKE FOR 30 MILLION FOODMAKER WILL RECEIVE A 406 STAKE AND CASH IN RETURN FOR THE SALE OF ITS CHICHI'S INC PART OF THE PROCEEDS FROM THIS OFFERING WILL GO TOWARDS PAYING FOODMAKER FOR THE SALE APPARENTLY THE SUCCESS OF THE SALE OF THE FAMILY RESTAURANT BONDS SPILLED OVER INTO THE OFFERING BY MFS COMMUNICATIONS A DIGITAL FIBER OPTIC COMMUNICATIONS COMPANY ACCORDING TO MR PENNIMAN MFS WAS ABLE TO INCREASE THE SIZE OF ITS OFFERING TO 500 MILLION AND REDUCE THE YIELD ON ITS ZERO COUPON NOTES THANKS TO THE STRONG DEMAND MFS SOLD THE SENIOR DISCOUNT NOTES AT 63426 TO YIELD 9375 THE NOTES WON'T PAY A COUPON FOR FIVE YEARS AND ARE NONCALLABLE FOR FIVE YEARS THEY ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC IT WAS THE COMPANY'S FIRST FORAY INTO THE JUNK BOND MARKET MFS COMMUNICATIONS IS THE NATION'S LARGEST PROVIDER OF LOCAL COMPETITIVE ACCESS TELECOMMUNICATIONS THROUGH DIGITAL FIBER OPTIC NETWORKS THE OMAHA NEBBASED COMPANY HAS FOCUSED ITS SERVICE IN THE LARGER BUSINESSTOBUSINESS SECTOR AND PLANS TO EXPAND TO 60 MARKETS IN THE NEXT FIVE YEARS THROUGH A 1 BILLION EXPANSION A COMPANY SPOKESMAN SAID ACCORDING TO THE PROSPECTUS PROCEEDS MAY BE USED TO FUND THE EXPANSION MFS COMMUNICATIONS IS A GREAT COMPANY THEY HAVE FOUND A NICHE IN THE FIBER OPTICS BUSINESS SAID MARION BOUCHER A MANAGING DIRECTOR AND SENIOR TELECOMMUNICATIONS ANALYST WHO JOINED BEAR STEARNS & CO TODAY AFTER LEAVING DLJ THEY ARE IN THE RIGHT SPOT AT THE RIGHT TIME SHE ADDED UNLIKE TRADITIONAL TELEPHONE COMPANIES WHICH USE COPPER WIRES FOR TRANSMISSION MFS PROVIDES STATEOFTHEART FIBER OPTIC LINKS IN MAJOR METROPOLITAN AREAS SAID MS BOUCHER COPPER WIRES AREN'T ALWAYS TOTALLY RELIABLE WHILE FIBER OPTICS ARE VIRTUALLY FAULT FREE SHE SAID WHILE YESTERDAY MARKED MFS COMMUNICATIONS' FIRST DEBT ISSUANCE MS BOUCHER SAID SHE HAS BEEN RECOMMENDING THE COMPANY'S STOCK FOR THE PAST YEAR IT'S BEEN QUITE AWHILE SINCE WE'VE SEEN A NUMBER OF ISSUERS LIKE THIS SELLING ZERO COUPON BONDS SAID MR PENNIMAN OF DUFF & PHELPS WE'RE BEGINNING TO WONDER IF PEOPLE ARE MAKING INTEREST RATE CALLS IN ADDITION TO CREDIT CALLS HE ADDED THAT'S BECAUSE IF INTEREST RATES DROP INVESTORS IN ZERO COUPON BONDS STAND TO EARN MORE THAN INVESTORS IN PLAIN VANILLA CORPORATE BONDS MR PENNIMAN SAID HE THOUGHT THE FINAL YIELD ON THE MFS DEAL WAS A BIT TOO LOW FOR HIS TASTES WE WOULD HAVE LIKED TO SEE IT COMING 1/4 TO 1/2 POINT HIGHER HE SAID THERE ARE A NUMBER OF OTHER ZERO COUPON JUNK BOND OFFERINGS IN THE WORKS ACCORDING TO MCM CORPORATEWATCH INCLUDING A 200 MILLION OFFERING OF FIVEYEAR ZERO COUPON NOTES FROM ACF INDUSTRIES HOLDINGS CORP ACCORDING TO EVAN STEEN MANAGER OF THE PAINEWEBBER HIGH INCOME FUND PART OF THE REASON FOR SUCH STRONG DEMAND MAY ALSO BE GREAT CONFIDENCE OF INVESTORS IN SOCALLED GROWTH STORIES OR COMPANIES EXPECTED TO FLOURISH IN THE NEXT FEW YEARS IN THE INVESTMENTGRADE MARKET 804 MILLION OF DEBT WAS PRICED FROM ISSUERS INCLUDING AON CORP FIRST CHICAGO CORP AND PRIVATE EXPORT FUNDING CORP NEWS THAT ECONOMIC GROWTH IS NOT ONLY EXPANDING BUT ACCELERATING DID LITTLE TO AFFECT A THINLY TRADED TREASURY MARKET BECAUSE THE NEWS WAS ANTICIPATED NONETHELESS THE FEDERAL RESERVE'S REPORT ON REGIONAL ECONOMIC CONDITIONS GAVE TRADERS A SENSE THAT THE ECONOMY CONTINUES TO STRENGTHEN THE DATA COVERS A PERIOD OF MIDDECEMBER TO JAN 10 PRICES OF MANY TREASURY SECURITIES MATURING IN FIVE YEARS OR LESS WERE LITTLE CHANGED WHILE THOSE WITH LONGER MATURITIES POSTED LOSSES WHILE THE 30YEAR TREASURY BOND DROPPED 3/8 POINT THE 10YEAR NOTE DROPPED JUST 1/8 POINT TO 100 6/32 TO YIELD 571 COMPARED WITH 569 ON TUESDAY A BIGGER STORY WAS THE BITTERLY COLD WEATHER GRIPPING MUCH OF THE NATION SOME TRADERS ATTRIBUTED THE LACKLUSTER STATE OF THE MARKET AS MUCH TO FRIGID TEMPERATURES AS THE LACK OF COMPELLING ECONOMIC DATA THE MARKET'S ATTENTION TURNED TO WHAT EFFECT THE COLD WEATHER MIGHT HAVE ON THE ECONOMY FORD MOTOR CO FOR INSTANCE CLOSED TWO PLANTS IN LOUISVILLE KY AND REDUCED PRODUCTION AT 11 OTHER PLANTS AS A RESULT OF SEVERE WEATHER CONDITIONS IN MUCH OF THE US AND CANADA ANALYSTS BELIEVE THE COLD WEATHER WILL AFFECT CONSUMER SPENDING AND THE HOUSING SECTOR AS WELL AS MANUFACTURING FAR MORE THAN THE LOS ANGELES EARTHQUAKE THE TREASURY ANNOUNCED PLANS TO SELL 17 BILLION IN TWOYEAR NOTES TUESDAY AND 12 BILLION IN FIVEYEAR NOTES WEDNESDAY ON TARGET WITH EXPECTATIONS THE FIVEYEAR NOTE OFFERING WAS INCREASED FROM 16 BILLION LAST MONTH TO FINANCE THE PREVIOUSLY ANNOUNCED CALL OF A BOND IN WHENISSUED TRADING THE FIVEYEAR NOTE YIELDED 510 AND THE TWOYEAR NOTE YIELDED 415 ISSUERS PRICED MORE THAN 1 BILLION OF MUNICIPAL DEBT WITH MAJOR OFFERING FROM WASHINGTON SUBURBAN SANITARY DISTRICT AND NORTH CAROLINA A MORGAN STANLEY & CO GROUP WON THE WASHINGTON SUBURBAN SANITARY DISTRICT'S 4353 MILLION VARIOUS 1994 REFUNDING BONDS THE ISSUE WAS PRICED TO YIELD FROM 240 IN 1994 TO 520 IN 201315 THE SESSION'S SECONDLARGEST ISSUE NORTH CAROLINA'S 400 MILLION CAPITALIMPROVEMENT BONDS WAS WON BY A CS FIRST BOSTON GROUP YIELDS RANGE FROM 230 IN 1995 TO 500 IN 2012 AND 2013 IN LOS ANGELES MUNI DEALINGS REMAINED SLOW FOLLOWING THE SEVERE EARTHQUAKE MONDAY TRADERS SAID CALIFORNIA GOV PETE WILSON SAID DAMAGE MAY RANGE BETWEEN 15 BILLION AND 30 BILLION THE FEDERAL EMERGENCY MANAGEMENT AGENCY SAID IT MAY SPEND 500 MILLION ON REPAIRS AND RELIEF BACKING OFF FROM AN EARLIER ESTIMATE OF 1 BILLION PRICES OF MORTGAGE SECURITIES SHOWED LITTLE IF ANY MOVEMENT THE 6 1/2 SECURITIES FOR FEBRUARY DELIVERY FINISHED UNCHANGED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ENDED AT 99 23/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS WERE AT 99 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WAS AT 99 23/32 JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9401200121 940120 WHO'S NEWS CABLE & WIRELESS PLC CABLE & WIRELESS PLC LONDON STEPHEN PETTIT WAS NAMED TO THE NEWLY CREATED POST OF MANAGING DIRECTOR EUROPE EFFECTIVE MARCH 1 MR PETTIT JOINS THE TELECOMMUNICATIONS COMPANY FROM BRITISH PETROLEUM CO WHERE HE WAS CHIEF EXECUTIVE OFFICER PETROCHEMICALS WITH BP CHEMICALS CABLE & WIRELESS ALSO SAID LINUS CHEUNG WAS NAMED CHIEF EXECUTIVE OF ITS 57OWNED HONG KONG TELECOMMUNICATIONS SUCCEEDING MIKE GALE WHO DIED TUESDAY MR CHEUNG WILL JOIN HONG KONG TELECOM FROM THE CATHAY PACIFIC AIRWAYS 9401200120 940120 INTERNATIONAL RUBLE'S SLIDE SPOTLIGHTS POWER OF OLDSTYLE CENTRAL BANK CHIEF GERASHCHENKO IS DEFINING HIS ROLE AS SUBSIDIZING MANY FAILING INDUSTRIES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE RECORD SLIDE OF THE RUBLE AND CONFLICTING REPORTS THAT PROREFORM FINANCE MINISTER BORIS FYODOROV IS ABOUT TO DEFECT FROM PRESIDENT YELTSIN'S CABINET SPOTLIGHT THE POWER OF THE CENTRAL BANK AND ITS SOVIETSTYLE CHAIRMAN VIKTOR GERASHCHENKO FOR THE PAST YEAR MESSRS GERASHCHENKO AND FYODOROV HAVE SPARRED OVER FUNDAMENTALLY OPPOSED VISIONS OF WHAT ROLE THE CENTRAL BANK OF RUSSIA SHOULD PLAY MR FYODOROV HAS INSISTED THAT THE BANK'S MAIN TASK SHOULD BE TO DEFEND THE STABILITY OF THE RUBLE AND LET CREDIT FLOW VIA MARKET FORCES TO WHERE IT WILL BE MOST USEFUL MR GERASHCHENKO HAS FAVORED PUMPING OUT CHEAP CREDIT TO SUBSIDIZE FAILING RUSSIAN INDUSTRIES COLLECTIVE FARMS AND FORMER SOVIET STATES THAT IN TURN CAN SERVE AS CUSTOMERS FOR RUSSIAN PRODUCTS THE RESULT OF THIS EASY MONEY HAS BEEN DOUBLEDIGIT MONTHLY INFLATION AND A RADICALLY DEVALUED RUBLE SINCE HE TOOK CHARGE OF THE CENTRAL BANK IN JULY 1992 THE 185 PLUNGE OF THE RUBLE AGAINST THE DOLLAR DURING THE PAST THREE DAYS LARGELY REFLECTS MARKET FEARS THAT MR GERASHCHENKO AND HIS CENTRALPLANNING INFLATIONARY WAYS ARE ABOUT TO PREVAIL FEEDING THESE FEARS IS MR GERASHCHENKO'S LATEST COUP AGAINST REFORM A DEAL HE SIGNED JAN 5 WITH THE FORMER SOVIET STATE OF BELARUS FOR A NEW RUBLE ZONE MONETARY UNION IT'S AN AGREEMENT LIKELY TO CARRY A HIGH COST FOR RUSSIA AND MORE IMPORTANT IT REPRESENTS A TREND BACK TOWARD CENTRAL PLANNING THIS PLAN FOR A MOSCOWMINSK RUBLE ZONE WAS ONE OF THE TWO AFFRONTS TO REFORM POLICIES SPECIFIED BY FORMER REFORM CZAR YEGOR GAIDAR WHEN HE RESIGNED AS FIRST DEPUTY PRIME MINISTER SUNDAY AND THE RECENT TURN OF THE POLICY TIDE IN MR GERASHCHENKO'S FAVOR IS ONE REASON WHY MR FYODOROV AS A CONDITION FOR STAYING ON IN MR YELTSIN'S NEW CABINET AS FINANCE MINISTER HAS BEEN DEMANDING THE RESIGNATION OF MR GERASHCHENKO UNRUFFLED AND SO FAR UNREMOVED FROM HIS JOB MR GERASHCHENKO IN A TELEVISION INTERVIEW SUNDAY DEFENDED HIS INFLATIONARY CENTRALPLANNING WAYS MR GERASHCHENKO TOLD VIEWERS FRANKLY I CAN SEE NO REASONS FOR PANIC BUT MANY RUSSIANS ARE SCARED SINCE SUNDAY THE RUBLE HAS LOST ABOUT 100 POINTS DAILY AGAINST THE DOLLAR CLOSING WEDNESDAY AT A RECORD LOW OF 1607 YESTERDAY MR FYODOROV WAS QUOTED BY THE INDEPENDENT INTERFAX NEWS AGENCY AS SAYING HE'S WILLING TO BET 100000 RUBLES THAT IF HE INDEED QUITS THE CABINET THE RUBLE BY THE END OF THE WEEK WILL FALL TO 2000 TO THE DOLLAR THE AIM OF THE NEW RUBLE ZONE DEAL IS THAT THE NATIONAL BANK OF BELARUS WILL EFFECTIVELY BECOME A RUBLEEMITTING BRANCH OF THE CENTRAL BANK OF RUSSIA THIS WOULD CREATE A NEW CHANNEL FOR THE RUSSIAN CENTRAL BANK TO ISSUE SUBSIDIZED CREDITS WHICH COULD BE TARGETED ROUGHLY WHERE IT MIGHT CHOOSE SO BELARUS WILL BE CEDING ITS ECONOMIC SOVEREIGNTY NOT SIMPLY TO RUSSIA BUT TO THE DIRECTIVES OF THE RUSSIAN CENTRAL BANK IN EXCHANGE BELARUS WILL GET TO CASH IN ITS FASTDEPRECIATING CURRENCY THE ZAICHIK OR RABBIT FOR RUBLES AND THEN START ISSUING RUBLES IN THE FORM OF BOTH CASH AND CREDIT THE IMPLICIT UNDERSTANDING IS THAT BELARUS WILL USE THESE RUBLES TO BUY GOODS FROM RUSSIA INCLUDING DESPERATELY NEEDED OIL AT RUSSIA'S BELOW WORLDMARKET DOMESTIC PRICES MUCH ABOUT THE DEAL REMAINS TO BE FIRMED UP INCLUDING THE RATE AT WHICH THE INITIAL SWAP WILL TAKE PLACE BUT ONCE THIS NEW RUBLE ZONE SWINGS INTO ACTION MR GERASHCHENKO WILL HAVE EXPANDED HIS POWER BASE BEYOND RUSSIA'S BORDERS AT A COST OF SUBSIDIES TO BELARUS THAT WILL ULTIMATELY COME FROM THE POCKETS OF ALREADY STRAPPED RUSSIANS THIS IS EXACTLY THE KIND OF POLICY THAT MR FYODOROV IN PARTICULAR HAS BEEN LABORING FOR THE PAST YEAR TO PREVENT UNDER PRESSURE FROM THE FINANCE MINISTRY MR GERASHCHENKO RAISED CENTRAL BANK LENDING RATES TO A LEVEL THAT BY THE END OF THE YEAR WAS BEGINNING TO MESH WITH NORMAL MARKET RATES THE RUBLE BEGAN TO STABILIZE AT ABOUT 1200 TO THE DOLLAR AND INFLATION IN DECEMBER DROPPED TO 12 ITS LOWEST RATE IN MONTHS WHILE THIS WAS GOING ON HOWEVER MR GERASHCHENKO WAS TRYING TO OUTFLANK MR FYODOROV'S DISCIPLINARY EFFORTS BY SETTING UP WHAT WAS BILLED LAST OCTOBER AS A RUBLE ZONE OF A NEW TYPE A WEAKER VERSION OF THIS MONTH'S BELARUS RUBLEZONE DEAL THIS PREVIOUS SCHEME WOULD HAVE ALLOWED FIVE OTHER FORMER SOVIET STATES KAZAKHSTAN TAJIKISTAN ARMENIA UZBEKISTAN AND BELARUS ACCESS TO MR GERASHCHENKO'S RUBLE LARGESSE MEANWHILE MR GERASHCHENKO ALSO FIRED ONE OF THE TWO MOST REFORMMINDED DEPUTY GOVERNORS OF THE CENTRAL BANK'S BOARD SERGEI IGNATIEV REMOVING MR IGNATIEV ALLOWED MR GERASHCHENKO MORE ROOM TO MANEUVER TOWARD ISSUING MORE CREDITS AND ACCORDING TO A SWEDISH ADVISER TO THE RUSSIAN FINANCE MINISTRY ECONOMIST ANDERS ASLUND MR GERASHCHENKO LAST FALL ALSO REQUISITIONED THE PRINTING OF SUFFICIENT CASH RUBLES TO FULLY COVER A SURPRISE SWAP OF THE OTHER FIVE COUNTRIES' CURRENCIES FOR NEW RUSSIAN RUBLES THE DEAL COLLAPSED WHEN DEPUTY PRIME MINISTER ALEXANDER SHOKHIN ADDED THE CONDITION THAT THESE REPUBLICS HAD TO DEPOSIT GOLD OR HARD CURRENCY RESERVES WITH RUSSIA'S CENTRAL BANK AS COLLATERAL FOR RUBLE CREDITS THE RECENT BELARUS RUBLE DEAL SAYS MR ASLUND IS MUCH WORSE THAN THE RUBLEZONE PLAN MR GERASHCHENKO WAS AIMING FOR LAST FALL AMONG OTHER THINGS ITS ASSUMPTION OF ECONOMIC CONTROL OVER A NEIGHBORING COUNTRY FITS NEATLY IN TANDEM WITH THE PAST YEAR'S TREND TOWARD RUSSIAN MILITARY INTERVENTION IN WHAT MR YELTSIN'S GOVERNMENT HAS BEEN CALLING THE NEAR ABROAD AND IT IS THE CONSTANT SEESAW STRUGGLE TO PRODUCE A COHERENT REFORM POLICY THAT IS FRUSTRATING REFORMERS THIS IS WHY RUSSIANS ARE FRANTICALLY UNLOADING THEIR RUBLES FEARING THAT MR FYODOROV MAY CLEAR OUT OF THE FINANCE MINISTRY LEAVING MR GERASHCHENKO A CLEAR FIELD TO FURTHER EXPAND THE ZONE OF THE DEPRECIATING RUBLE 9401200119 940120 WHO'S NEWS HARTMARX CORP HARTMARX CORP CHICAGO HOMI B PATEL 44YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS APPAREL MANUFACTURER WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO 13 9401200118 940120 ABREAST OF THE MARKET INDUSTRIAL ISSUES RISE TO RECORD DESPITE CONCERNS ABOUT EARNINGS BY DAVE PETTIT AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE A DAY OF WORRYING ABOUT EARNINGS STOCK PRICES MOVED HIGHER LATE IN THE SESSION PUSHING THE DOW JONES INDUSTRIAL AVERAGE TO ANOTHER RECORD LOWERTHANEXPECTED PROFIT REPORTS FROM BELLWETHER COMPANIES INCLUDING CHIP MAKER INTEL AND DRUG MANUFACTURER PFIZER BATTERED TECHNOLOGY AND PHARMACEUTICAL STOCKS AND PUSHED MARKET AVERAGES LOWER MUCH OF THE DAY A ROUND OF BUYING THOUGH CARRIED MUCH OF THE MARKET HIGHER BEFORE THE CLOSE COMPUTERDRIVEN PROGRAM BUYING AIDED THE LATE RECOVERY ACCORDING TO MARKET RESEARCH FIRM BIRINYI ASSOCIATES THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A GAIN OF 1408 OR 036 TO 388437 ITS SEVENTH HIGH OF THE YEAR THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ALSO EDGED TO A HIGH GAINING 019 OR 007 TO 26295 TOPPING ITS PREVIOUS RECORD BY LESS THAN 1/10 OF A POINT OTHER BROADBASED INDEXES WERE MIXED WHILE ADVANCERS LED DECLINERS BY A SLIM 1144 TO 983 ON THE BIG BOARD VOLUME WAS HEAVY AT ABOUT 3108 MILLION SHARES JUST ABOVE TUESDAY'S 3086 MILLION THE LATE RECOVERY COULDN'T REVIVE THE NASDAQ STOCK MARKET TECHNOLOGY ISSUES WITH WHICH THE MARKET IS HEAVILY WEIGHTED REMAINED DEPRESSED THROUGH THE CLOSE THE NASDAQ COMPOSITE INDEX WHICH SET A RECORD TUESDAY LOST 374 OR 047 TO 78928 INTEL TUMBLED 4 3/4 OR 71 TO 62 1/2 ON NASDAQLEADING VOLUME OF 236 MILLION SHARES THE SANTA CLARA CALIF COMPANY REPORTED FOURTHQUARTER EARNINGS OF 135 A SHARE UP FROM 99 CENTS LAST YEAR BUT BELOW THE 139 FORECAST BY ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM DISAPPOINTING REPORTS ALSO CAME FROM COMPUTERWORKSTATION MAKER SUN MICROSYSTEMS SOFTWAREDEVELOPER BORLAND INTERNATIONAL AND COMPUTERMAKER DIGITAL EQUIPMENT SUN MICRO FELL 3/4 TO 27 1/4 AND BORLAND LOST 1 1/2 TO 13 7/8 BOTH ON NASDAQ DIGITAL SKIDDED 3 3/4 TO 32 3/4 ELSEWHERE THE STANDARD & POOR'S 500 STOCK INDEX INCHED UP 005 OR 001 TO 47430 THE DOW JONES EQUITY MARKET INDEX SLIPPED 011 OR 002 TO 44860 AND THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 134 OR 028 TO 48328 THOMAS GALLAGHER DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER & CO SAID THE MIXED NATURE OF YESTERDAY'S ACTION LEFT HIM UNIMPRESSED THIS IS A WARNING SIGN THAT THE MARKET IS RUNNING OUT OF BUYING POWER HE SAID PFIZER MEANWHILE TUMBLED 5 OR 74 TO 62 7/8 ON BIG BOARD LEADING VOLUME OF 58 MILLION SHARES AFTER IT REPORTED FOURTHQUARTER NET INCOME OF 90 CENTS A SHARE COMPARED WITH 83 CENTS LAST YEAR ANALYSTS HAD EXPECTED THE NEW YORK CONCERN TO EARN ABOUT 98 CENTS ACCORDING TO I/B/E/S AMONG OTHER DRUG STOCKS JOHNSON & JOHNSON EASED 3/4 TO 42 7/8 MERCK & CO LOST 3/4 TO 35 7/8 AMERICAN HOME PRODUCTS DECLINED 7/8 TO 64 1/4 AND SCHERINGPLOUGH FELL 1 7/8 TO 64 3/8 BORLAND'S PLUNGE CAME AFTER THE COMPANY LATE TUESDAY REPORTED THIRDQUARTER EARNINGS OF TWO CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF 11 CENTS DIGITAL'S FALLOFF WAS ALSO RELATED TO ITS LATEST FINANCIAL RESULTS THE COMPANY POSTED A LOSS OF 53 CENTS A SHARE WELL BELOW ANALYSTS' EXPECTATIONS FOR NET INCOME OF SIX CENTS A SHARE SUN MICROSYSTEMS ALSO SUFFERED DESPITE EARNING 46 CENTS A SHARE IN THE SECOND QUARTER THAT FIGURE FELL TWO CENTS BELOW ANALYSTS' VIEWS SHARES OF COLUMBIA GAS SYSTEM JUMPED 3 1/8 OR 135 TO 26 1/4 AFTER THE COMPANY ANNOUNCED ITS COLUMBIA GAS TRANSMISSION UNIT FILED ITS CHAPTER 11 REORGANIZATION PLAN IN US BANKRUPTCY COURT COLUMBIA GAS SYSTEMS' REORGANIZATION PLAN IS TO BE FILED AT A LATER DATE BOTH COLUMBIA GAS TRANSMISSION AND ITS PARENT HAVE BEEN OPERATING AS DEBTORSINPOSSESION SINCE JULY 31 1991 ARMSTRONG WORLD INDUSTRIES GAINED 4 OR 75 TO 57 1/8 THE MANUFACTURER OF INTERIOR FURNISHINGS IN LANCASTER PA SAID 1993 FOURTHQUARTER SALES WERE UP 4 FROM THE YEARAGO PERIOD AND WILL BE THE HIGHEST FOR ANY FOURTH QUARTER IN THE COMPANY'S HISTORY ARMSTRONG ALSO SAID EARNINGS FOR THE PERIOD SHOULD BE BETWEEN 80 CENTS AND 85 CENTS A FULLY DILUTED SHARE WELL ABOVE EXPECTATIONS TWO STOCKS WERE POSITIVELY AFFECTED BY BROKERAGE FIRMS INITIATING COVERAGE WESTCOAST ENERGY IMPROVED 1 1/8 TO 18 1/4 AFTER SMITH BARNEY SHEARSON BEGAN COVERAGE WITH A BUY RATING AND J&L SPECIALTY STEEL GAINED 7/8 TO 17 ON THE HEELS OF A UBS SECURITIES INITIAL BUY RATING MICROSOFT FELL 1 3/8 TO 83 1/4 ON NASDAQ BUT RECOVERED TO 84 1/8 AFTER THE MARKET CLOSED IN TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEM THE SOFTWARE COMPANY IN REDMOND WASH LATE TODAY REPORTED EARNINGS OF 95 CENTS A SHARE FOR THE SECOND QUARTER ENDED DEC 31 UP FROM 78 CENTS A YEAR AGO HOUGHTON MIFFLIN PLUNGED 13 OR 6 7/8 TO 46 AFTER THE COMPANY SAID 1994 EARNINGS ARE EXPECTED TO BE ABOUT 10 LESS THAN ORIGINALLY EXPECTED THE COMPANY ALSO REPORTED FOURTHQUARTER EARNINGS OF TWO CENTS A SHARE SLIGHTLY HIGHER THAN ANALYSTS HAD ESTIMATED SHARES OF SMITH CORONA WERE OFF 5/8 OR 96 AT 5 7/8 THE TYPEWRITER AND WORDPROCESSOR MANUFACTURER REPORTED SECONDQUARTER EARNINGS OF FIVE CENTS A SHARE COMPARED WITH 13 CENTS A YEAR EARLIER THE COMPANY ALSO SAID IT REMAINS CAUTIOUS ABOUT THE BALANCE OF THE YEAR ALZA CORP SLIPPED 1 3/4 TO 26 1/4 ON NEWS LATE TUESDAY THAT CYGNUS THERAPEUTIC SYSTEMS SAID IT SUED ALZA FOR VIOLATION OF ANTITRUST LAWS AND FOR DECLARATION OF UNENFORCEABILITY AND INVALIDITY OF PATENT SHAW INDUSTRIES FELL 1 TO 20 THE COMPANY REPORTED DISAPPOINTING SECONDQUARTER RESULTS TUESDAY AND SPECULATION WAS THAT THE COMPANY INTENTIONALLY DEFERRED SALES IN THE SECOND QUARTER A SPOKESMAN FOR THE COMPANY SAID SALES WEREN'T DEFERRED TO THE MARCH QUARTER SHAW ALSO BOOSTED ITS QUARTERLY DIVIDEND TO 55 CENTS FROM 45 CENTS CITY NATIONAL CORP SLIPPED 3/8 TO 8 DESPITE REPORTING FOURTHQUARTER NET INCOME OF 10 CENTS A SHARE COMPARED WITH INCOME FROM CONTINUING OPERATIONS OF TWO CENTS A SHARE IN THE YEARAGO PERIOD 9401200117 940120 WHO'S NEWS BEAR STEARNS COS BEAR STEARNS COS NEW YORK MARION BOUCHER 38 WAS NAMED MANAGING DIRECTOR AND SENIOR TELECOMMUNICATIONS ANALYST IN THE HIGHGRADE FIXEDINCOME RESEARCH DEPARTMENT OF BEAR STEARNS & CO THE BROKERAGE UNIT OF THIS INVESTMENT BANKING COMPANY MS BOUCHER FORMERLY A VICE PRESIDENT WITH EQUITABLE COS' DONALDSON LUFKIN & JENRETTE INC WILL REPORT TO DANIEL SCOTTO WHO LEFT DLJ LAST WEEK TO HEAD THE BEAR STEARNS HIGHGRADE FIXEDINCOME RESEARCH DEPARTMENT 9401200116 940120 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI WAYNE M MINCEY 37 YEARS OLD WAS ELECTED TO THE NEW POST OF AREA VICE PRESIDENTCENTRAL AREA OF RYDER CONSUMER TRUCK RENTAL A DIVISION OF THIS TRANSPORTATION SERVICES CONCERN MR MINCEY HAD BEEN VICE PRESIDENTDEVELOPMENT AND CENTRAL OPERATIONS FOR THE DIVISION HE IS SUCCEEDED BY DAVID S RUSSELL 35 WHO HAD BEEN DISTRICT MANAGER IN THE NEW YORK/NEW JERSEY AREA 9401200115 940120 WHO'S NEWS FIRST WESTERN BANCORP FIRST WESTERN BANCORP NEW CASTLE PA JOHN A ZERCHER 41 YEARS OLD WAS PROMOTED TO SENIOR VICE PRESIDENT IN CHARGE OF INFORMATION SYSTEMS AND DONALD D WEHN 39 WAS PROMOTED TO SENIOR VICE PRESIDENT FOR MORTGAGE LENDING STRATEGIC PLANNING AND SPECIAL PROJECTS FUNCTIONS AT THIS BANK HOLDING COMPANY BOTH WERE PREVIOUSLY VICE PRESIDENTS IN CHARGE OF THEIR RESPECTIVE AREAS 9401200114 940120 CHASE MANHATTAN LIFTS PAYOUT 10 UNVEILS STOCKOPTION PLAN NEW YORK CHASE MANHATTAN CORP SAID ITS BOARD RAISED THE REGULAR QUARTERLY DIVIDEND 10 TO 33 CENTS A SHARE IT ALSO ANNOUNCED IT WILL GIVE ALL FULLTIME EMPLOYEES STOCK OPTIONS WITH CERTAIN INCENTIVE PROVISIONS THE BANK HOLDING COMPANY SAID THE DIVIDEND INCREASE IS THE FIRST CHANGE SINCE 1990 AND REFLECTS ITS SIGNIFICANTLY IMPROVED PERFORMANCE THE DIVIDEND IS PAYABLE FEB 15 TO HOLDERS OF RECORD JAN 31 UNDER THE STOCKOPTION PLAN EACH FULLTIME EMPLOYEE WILL RECEIVE 400 STOCK OPTIONS WITH AN EXERCISE PRICE BASED ON YESTERDAY'S AVERAGE SELLING PRICE THE OPTIONS CARRY VESTING PROVISIONS TIED TO FUTURE INCREASES IN CHASE'S STOCK PRICE THE HIGHER THE STOCK PRICE THE SOONER THE EMPLOYEES BECOME VESTED FULL VESTING COULD COME IN AS SOON AS THREE YEARS IF THE STOCK TRADES AT AN AVERAGE OF 60 PER SHARE IF THE PERFORMANCEBASED VESTING CONDITIONS AREN'T MET THE OPTIONS VEST AFTER NINE YEARS THE COMPANY SAID THE PROGRAM WOULDN'T CAUSE A CHARGE TO EARNINGS AND THAT DILUTION OF PERSHARE EARNINGS ISN'T EXPECTED TO BE SIGNIFICANT EARLIER THIS WEEK CHASE REPORTED EARNINGS UP MORE THAN 50 FOR THE YEAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CHASE CLOSED AT 35375 DOWN 375 CENTS 9401200113 940120 CALIFORNIA TAX POLICY ON MULTINATIONALS IS BACKED BY CLINTON IN HIGH COURT CASE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SEEKING TO GAIN POLITICAL FAVOR WITH CALIFORNIA OFFICIALS URGED THE SUPREME COURT TO UPHOLD THE STATE'S AGGRESSIVE POLICY ON TAXING MULTINATIONAL CORPORATIONS UNDER PRESSURE FROM THE WHITE HOUSE THE JUSTICE DEPARTMENT FILED A FRIENDOFTHECOURT BRIEF LATE YESTERDAY SUPPORTING CALIFORNIA IN ONE OF THE MOST CLOSELY WATCHED BUSINESS CASES OF THE 19931994 TERM OF THE SUPREME COURT AT STAKE ARE BILLIONS OF DOLLARS IN TAX REVENUE THAT CALIFORNIA SAYS IT MIGHT HAVE TO REFUND TO MULTINATIONALS IF THE SUPREME COURT RULES AGAINST IT FOLLOWING THROUGH ON A CAMPAIGN PROMISE BY MR CLINTON TO OFFICIALS IN THE FINANCIALLY STRAPPED STATE THE ADMINISTRATION REVERSED LONGSTANDING FEDERAL OPPOSITION TO THE TYPE OF TAX CALIFORNIA IMPOSES THROUGHOUT PROTRACTED LOWERCOURT PROCEEDINGS IN THE CASE THE JUSTICE DEPARTMENT HAD FILED BRIEFS WARNING THAT CALIFORNIA'S AGGRESSIVE TAX POLICY HAS ANGERED US TRADING PARTNERS AND COULD CAUSE RETALIATORY ACTIONS BY FOREIGN GOVERNMENTS THAT WOULD HURT US COMPANIES AS RECENTLY AS THE FALL OF 1992 THE DEPARTMENT FILED A BRIEF WITH THE SUPREME COURT SUPPORTING A CHALLENGE TO THE CALIFORNIA TAXING METHOD BY BARCLAYS BANK PLC YESTERDAY HOWEVER THE JUSTICE DEPARTMENT TOLD THE SUPREME COURT THAT BARCLAYS' CLAIM MUST FAIL THE ADMINISTRATION SAID THAT AN ANALOGOUS CLAIM BY A US BASED MULTINATIONAL COLGATEPALMOLIVE CO ALSO SHOULD BE DENIED THE CENTRAL ISSUE IN THE CASE IS CALIFORNIA'S POLICY OF TAXING A PORTION OF THE WORLDWIDE INCOME OF MULTINATIONAL COMPANIES INCLUDING PARENT COMPANIES AND OTHER AFFILIATES BASED ON A FORMULA REFLECTING THE AMOUNT OF BUSINESS THE FIRMS DO IN CALIFORNIA IN CONTRAST THE FEDERAL GOVERNMENT AND MOST OTHER STATES TREAT THE US OPERATIONS OF MULTINATIONALS AS SEPARATE FROM THEIR AFFILIATES OVERSEAS IN AN EARLIER BRIEF ATTACKING THE CALIFORNIA TAX THE JUSTICE DEPARTMENT SAID THE SOCALLED WORLDWIDE UNITARY APPROACH HAS CREATED AN IRRITANT IN THE COMMERCIAL RELATIONS OF THE UNITED STATES AND ITS MAJOR TRADING PARTNERS IN YESTERDAY'S BRIEF THE JUSTICE DEPARTMENT SAID THAT AS OF 1977 THE TAX YEAR IN QUESTION IN THE BARCLAYS PORTION OF THE CASE EXECUTIVEBRANCH OFFICIALS HAD EXPRESSED A PREFERENCE FOR TREATING US OPERATIONS SEPARATELY FOR TAX PURPOSES BUT IT SAID FEDERAL OFFICIALS HADN'T INDICATED THAT STATE USE OF THE WORLDWIDE UNITARY APPROACH WOULD BE INCOMPATIBLE WITH US INTERNATIONAL AGREEMENTS OR THAT THERE NECESSARILY OUGHT TO BE UNIFORM TAX POLICIES ON THE PART OF INDIVIDUAL STATES 9401200112 940120 WHO'S NEWS IEC ELECTRONICS INC IEC ELECTRONICS INC NEWARK NY RONNIE COSPER 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF MANUFACTURING OPERATIONS MR COSPER MOST RECENTLY WAS DIRECTOR OF OPERATIONS AT THIS MAKER OF PRINTED CIRCUITBOARD ASSEMBLIES AND ELECTRONIC PRODUCTS AND SYSTEMS 9401200111 940120 WHO'S NEWS DIED ROBERT F CORROON 71 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CORROON & BLACK CORP WHICH MERGED WITH WILLIS FABER OF LONDON IN 1990 TO BECOME WILLIS CORROON GROUP PLC MONDAY IN GREENWICH CONN 9401200110 940120 WHO'S NEWS APPLE COMPUTER INC NAMES BUCKLEY HEAD OF US MARKETING CUPERTINO CALIF APPLE COMPUTER INC SAID IT NAMED JAMES J BUCKLEY PRESIDENT OF ITS US MARKETING ARM APPLE USA TO SUCCEED ROBERT PUETTE WHO WAS FORCED OUT LAST OCTOBER MR BUCKLEY 43 YEARS OLD WHO HAS BEEN WITH APPLE FOR NINE YEARS AND MOST RECENTLY RAN APPLE USA'S HIGHEREDUCATION DIVISION FACES DAUNTING CHALLENGES APPLE IS SUFFERING FROM A PAINFUL PRICE WAR WITH OTHER PERSONALCOMPUTER MAKERS AND ITS FLAGSHIP MACINTOSH LINE SEEMS TO HAVE LOST SOME OF ITS MARKET APPEAL ITS RECENTLY INTRODUCED PERSONAL DIGITAL ASSISTANT THE NEWTON MESSAGEPAD HASN'T SOLD AS WELL AS EXPECTED APPLE HOPES TO IGNITE SALES THIS SUMMER WHEN IT UNVEILS A NEW GENERATION OF PERSONAL COMPUTERS CONTAINING THE HIGHCAPACITY POWERPC CHIP MEANWHILE MR BUCKLEY MUST FIND WAYS TO PERSUADE CUSTOMERS TO BUY THE EXISTING QUADRA LINE OF MACINTOSH PRODUCTS RATHER THAN AWAIT ITS MORE POTENT SUCCESSORS MR BUCKLEY WILL REPORT TO IAN DIERY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF APPLE'S PERSONALCOMPUTER DIVISION BEFORE JOINING APPLE HE HELD MARKETING POSITIONS AT THE OFFICE SYSTEMS DIVISIONS OF EXXON CORP AND XEROX CORP MR PUETTE 52 WAS THE VICTIM OF A HOUSECLEANING BY MICHAEL SPINDLER WHO BECAME CHIEF EXECUTIVE OFFICER LAST JUNE AFTER JOHN SCULLEY LEFT THE COMPANY UNDER PRESSURE FROM APPLE'S BOARD 9401200109 940120 WHO'S NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY WILLIAM H WILLIS WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND PRESIDENT OF THE SPECIAL MARKETS GROUP OF THIS PUBLISHER AND DIRECTMAIL MARKETER MR WILLIS 42 YEARS OLD WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER AT THE OGDEN INDUSTRIAL SERVICES UNIT OF OGDEN SERVICES CORP 9401200108 940120 CHICAGO BOARD OF TRADE VOTES TO FUND EXPANSION CHICAGO BY A MARGIN OF MORE THAN 2TO1 MEMBERS OF THE CHICAGO BOARD OF TRADE VOTED TO PAY 26 MILLION FOR AN ADJOINING BUILDING THAT THE EXCHANGE PLANS TO USE TO EXPAND ITS FACILITIES THE BADLY NEEDED EXPANSION WHICH WILL INCLUDE A NEW 60000SQUAREFOOT TRADING FLOOR THAT SPANS A CHICAGO STREET IS EXPECTED TO COST 1715 MILLION THIS HAS BEEN A HOTLY CONTESTED ISSUE AND I AM DELIGHTED THAT OUR MEMBERSHIP HAD THE CONFIDENCE TO SUPPORT THIS PROPOSAL SAID CBOT CHAIRMAN PATRICK H ARBOR 9401200107 940120 INDUSTRY FOCUS OIL CONCERNS ARE FEELING PINCH OF LOWER CRUDE PRICES S&P MAY CUT CREDIT RATINGS OF 11 FIRMS EARNINGS AND DRILLING ARE DOWN BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THE SLIDE IN CRUDE OIL PRICES TO FIVEYEAR LOWS HAS CAUSED INDUSTRY EARNINGS TO PLUNGE DRILLING PLANS TO BE CUT AND IMPAIRED THE BORROWING ABILITY OF A HOST OF COMPANIES THE TURMOIL WAS HIGHLIGHTED YESTERDAY WHEN STANDARD & POOR'S CORP A UNIT OF MCGRAWHILL INC OF NEW YORK SAID THAT OVER THE NEXT 90 DAYS IT WOULD CONSIDER REDUCING THE DEBT AND PREFERRED SECURITIES RATINGS OF 11 OF THE 100 OR SO OIL COMPANIES THAT IT FOLLOWS UNDER REVIEW AND PLACED ON WHAT THE RATINGS CONCERN CALLS CREDITWATCH IS ROUGHLY 20 BILLION OF SECURITIES THE LIST INCLUDES LARGE US OIL COMPANIES SUCH AS ATLANTIC RICHFIELD CO OF LOS ANGELES BIG OVERSEAS COMPANIES SUCH AS NORSK HYDRO SA OF OSLO AND SMALL OIL PRODUCTION COMPANIES SUCH AS GERRITY OIL & GAS CORP OF DENVER BEYOND THAT S&P NEGATIVELY REVISED ITS OUTLOOK ON ANOTHER 25 BILLION OF SECURITIES OF EIGHT OIL COMPANIES AN ACTION LESS DRASTIC THAN PLACING THESE COMPANIES ON CREDITWATCH BUT ONE THAT NEVETHELESS MEANS THAT IF THE RATING CHANGES IT IS LIKELY TO BE LOWER THE LIST INCLUDED SOME OILSERVICE COMPANIES THAT WOULD BE HURT BY REDUCED DRILLING SUCH AS HALLIBURTON CO OF DALLAS AND NOBLE DRILLING CORP OF HOUSTON S&P SAID THE INDUSTRYWIDE REVIEW WAS PROMPTED BY A CUT IN S&P'S OILPRICE FORECAST THROUGH 1995 ANDREA ESPOSITO A DIRECTOR IN THE RATINGS CONCERN'S OIL AND GAS GROUP SAID PRICES WILL RUN IN A 14 TO 18 A BARREL RANGE DOWN FROM AN EARLIER ESTIMATE OF 18 TO 22 THROUGH 1994 AND POSSIBLY THROUGH 1995 THE AVERAGE WILL HOVER IN THE LOWER END SHE SAYS ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR FEBRUARY DELIVERY YESTERDAY SETTLED AT 1540 A BARREL UP 35 CENTS BY SOME MEASURES THE OIL INDUSTRY HASN'T HAD A TRULY GOOD YEAR SINCE THE EARLY 1980S WHEN PRICES WITHOUT ADJUSTING FOR INFLATION WERE 30 AND HIGHER COMPANIES HAVE GONE THROUGH ONE PAINFUL RESTRUCTURING AFTER ANOTHER EVER SINCE AND COMMENTS FROM THE GRITTY OIL FIELDS AROUND THE COUNTRY TO THIS CITY'S SKYSCRAPERS REFLECT A MIX OF EMOTIONS RANGING FROM EXASPERATION TO FORCED PRAGMATISM WE HAVE REALLY TURNED THIS COMPANY AROUND IN THE PAST 18 MONTHS SAYS JAMES PAYNE CHIEF EXECUTIVE OF SANTA FE ENERGY RESOURCES INC IN HOUSTON NOTING THAT HE HAD ENGINEERED THE COMPANY TO RECORD DOUBLEDIGIT GROWTH IN CASH FLOW AND EARNINGS WHEN OIL WAS AT 18 A BARREL HERE WE WAKE UP WITH 15 OIL AND AT 15 WE HUNKER DOWN AND MAKE SURE THE COMPANY WILL BE HERE ANOTHER DAY HE SAYS OIL PRICES HAVE FALLEN ABOUT ONETHIRD SINCE MARCH 1993 WITH HALF THE DECLINE COMING AFTER OCTOBER THE SLUGGISH WORLD ECONOMY HAS KEPT DEMAND FAIRLY FLAT WHILE SUPPLIES HAVE INCREASED THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS NOT CURBED ITS OIL PRODUCTION WHILE OIL OUTPUT HAS INCREASED IN OTHER PARTS OF THE WORLD SUCH AS THE NORTH SEA AND LATIN AMERICA BEYOND THAT IRAQ'S EVENTUAL REENTRY INTO THE WORLD'S CRUDE OIL MARKETS IS BOUND TO FURTHER FLOOD ALREADY BRIMMING SUPPLIES AND WILL MAKE OPEC PRODUCTION CUTBACKS ALWAYS DIFFICULT FOR THE CARTEL TO AGREE ON AND MAINTAIN FOR ANY PERIOD OF TIME ALL THE MORE IMPORTANT TO THE INDUSTRY WITHOUT CUTBACKS PRICES COULD PLUNGE FURTHER MOST INDUSTRY EXECUTIVES AGREE WHAT'S CHANGED ONLY RECENTLY HAS BEEN THE PERCEPTION AMONG MANY COMPANIES A FEW MONTHS AGO THAT THE PRICE PLUNGE WAS TEMPORARY TO A MOROSE BELIEF THAT AN UGLY PRICE ENVIRONMENT WILL BE HERE FOR SOME TIME FOR INSTANCE A SURVEY TAKEN IN NOVEMBER AND DECEMBER BY THE NEW YORK SECURITIES FIRM SALOMON BROTHERS INC OF 280 OIL COMPANIES FOUND THAT THE INDUSTRY PLANNED TO BOOST ITS WORLDWIDE EXPLORATION AND PRODUCTION SPENDING TO 5484 BILLION UP 41 FROM 1993 SOMEWHAT SKEPTICAL OF ITS OWN SURVEY RESULTS AT THE TIME SALOMON NOW SAYS IT EXPECTS THAT SPENDING THIS YEAR WILL DROP 5 EARLIER THIS WEEK ORYX ENERGY CO OF DALLAS SAID IT SUSPENDED ITS QUARTERLY DIVIDEND AND WAS CUTTING ITS CAPITAL SPENDING 20 BECAUSE OF WEAK CRUDE PRICES ORYX SAID THAT AT LEAST 70 OF ITS OUTLAYS WILL GO TO DEVELOPMENT RATHER THAN EXPLORATION PROJECTS THAT WILL BRING IN REVENUE FASTER WITH LONGTERM DEBT OF 177 BILLION THE COMPANY WAS ONE OF THE 11 CITED BY S&P FOR A POSSIBLE RATINGS DOWNGRADE OUTSIDE OF THE OIL INDUSTRY OF COURSE LOW PRICES ARE WELCOME NEWS GASOLINE PRICES HAVE PLUNGED TO THEIR LOWEST LEVEL IN NEARLY TWO YEARS AND REGULAR UNLEADED CAN BE FOUND AT MANY STATIONS FOR LESS THAN 1 A GALLON DESPITE LAST YEAR'S 43CENT INCREASE IN THE FEDERAL GASOLINE TAX IN ITS MONTHLY SURVEY THE AMERICAN AUTOMOBILE ASSOCIATION SAYS THE AVERAGE PRICE NATIONWIDE IS DOWN TO 106 A GALLON 31 CENTS BELOW DECEMBER IN ADDITION THE COMMERCE DEPARTMENT SAID THE US TRADE DEFICIT NARROWED TO 1017 BILLION IN NOVEMBER FROM 109 BILLION IN OCTOBER IN LARGE PART BECAUSE OF THE PLUNGE IN ENERGY PRICES THE VOLUME OF PETROLEUM AND RELATED PRODUCTS IMPORTED IN NOVEMBER FELL 41 THE AGENCY SAID SANTA FE ENERGY WITH DEBT OF ABOUT 560 MILLION WAS ALSO PLACED ON CREDITWATCH AND ITS REACTION TO LOWER OIL PRICES WHILE MORE EXTREME THAN OTHER COMPANIES IS FAIRLY TYPICAL MR PAYNE THE CHIEF EXECUTIVE SAID THE COMPANY WOULD HAVE SPENT ABOUT 250 MILLION THIS YEAR DRILLING OIL WELLS AT 18 OIL BUT WITH REDUCED CASH FLOW FROM LOWER PRICES SANTA FE EXPECTS TO SPEND 90 MILLION TO 130 MILLION HE SAYS THE FIRST PRIORITY WILL BE TO PAY PRINCIPAL AND INTEREST ON ITS DEBT MR PAYNE SAYS WHAT'S LEFT OVER WE'LL SPEND ON THE VERY BEST PROJECTS WE HAVE HE SAYS ADDING THAT THE COMPANY HAS A NUMBER OF PROSPECTS IT CAN DRILL WHERE IT EXPECTS TO GET A 15 RATE OF RETURN EVEN AT 15 OIL THE REST HE SAYS WE'LL SAVE THEM AND WE'LL GO GET THEM WHEN PRICES GO UP ABOUT THREE WEEKS AGO SANTA FE BROUGHT IN CONSULTANTS MCKINSEY & CO FOR ADVICE ON HOW TO RUN ITS ADMINISTRATIVE FUNCTIONS MORE EFFICIENTLY SANTA FE ALSO HIRED ANDERSEN CONSULTING GROUP TO LOOK FOR WAYS TO IMPROVE ITS COMPUTER INFORMATION SYSTEMS THE PLUNGE IN OIL PRICES HAS REDUCED ENERGYCOMPANY EARNINGS ALMOST ACROSS THE BOARD EUGENE NOWAK AN OILSTOCK ANALYST AT DEAN WITTER REYNOLDS INC IN NEW YORK PREDICTS THAT OPERATING PROFITS OF THE DOZEN OR SO LARGEST USBASED OIL COMPANIES WILL DROP ABOUT 20 IN THE FOURTH QUARTER FROM A YEAR EARLIER MOBIL CORP OF FAIRFAX VA HAS ALREADY SAID IT WILL RECORD A 250 MILLION NONCASH CHARGE TO REFLECT THE DECLINE IN THE VALUE OF ITS PETROLEUM INVENTORIES IN THE PERIOD THE LARGEST OF THE WORLD'S OIL COMPANIES TEND TO OWN REFINERIES AND SERVICE STATIONS IN ADDITION TO OIL FIELDS AS A RESULT THEIR PROFIT DECLINES ARE SOMEWHAT TEMPERED BECAUSE OIL IS THE FEEDSTOCK FOR THE REFINERIES AND MARKETING NETWORKS AND THERE'S USUALLY A DELAY BETWEEN A DROP IN THE CRUDE PRICE AND A DECLINE IN THE PRICE OF END PRODUCTS SUCH AS GASOLINE ONE OF THE FEW INDUSTRY BRIGHT SPOTS IN RECENT MONTHS HAS BEEN THE PRICE OF NATURAL GAS STRONG DEMAND ACCELERATED BY THE CURRENT ARCTIC TEMPERATURES IN MUCH OF THE US HAS KEPT GAS PRICES STRONG RELATIVE TO OIL S&P FOR INSTANCE DIDN'T LOWER ITS GAS PRICE FORECAST FOR THE NEXT TWO YEARS LIKE IT DID OIL EXPECTING PRICES TO RUN IN THE RANGE OF 180 TO 220 A THOUSAND CUBIC FEET 9401200106 940120 INTERNATIONAL RIO BANS MANUFACTURE SALE OF GUNS AMMUNITION RIO DE JANEIRO REUTER IN A DESPERATE ATTEMPT TO CONTROL ESCALATING VIOLENCE HERE MAYOR CESAR MAIA ISSUED A DECREE PROHIBITING THE MANUFACTURE AND SALE OF GUNS AND AMMUNITION WE MUST DISARM THE POPULATION OF RIO DE JANEIRO WHAT WE HAVE MOST IN RIO ARE ARMS HE TOLD A NEWS CONFERENCE WE HOPE STATE AND FEDERAL GOVERNMENTS WILL TAKE SIMILAR MEASURES TO SUPPRESS THE SALE AND CIRCULATION OF ARMS CITY OFFICIALS WILL MEET WITH MAYORS OF NEIGHBORING TOWNS TOMORROW TO URGE THEM TO ADOPT SIMILAR MEASURES POLICE HAVE FOUGHT A SERIES OF BLOODY BATTLES WITH DRUG TRAFFICKERS IN RIO'S SHANTYTOWNS IN RECENT MONTHS UNCOVERING ARSENALS OF SOPHISTICATED WEAPONS MANY SMUGGLED IN FROM THE US AND OTHER COUNTRIES TO PROTECT THEMSELVES AGAINST CRIME MORE AND MORE RIO RESIDENTS ARE BUYING GUNS STUDIES SHOW ACCORDING TO THE POLICE SALES OF FIREARMS ROSE TO 15645 IN 1993 FROM 14768 IN 1992 THE O DIA NEWSPAPER REPORTED THE CITY ISSUED 757 LICENSES LAST YEAR UP FROM 404 IN 1992 9401200105 940120 FINANCING BUSINESS PI PARENT CORP PI PARENT CORP TO BE RENAMED PLANTRONICS INC SAID IT WOULD ISSUE 3588000 COMMON SHARES IN AN INITIAL PUBLIC OFFERING AT 1250 A SHARE PROCEEDS FROM THE STOCK SALE AND A CONCURRENT 85 MILLION OFFERING OF SENIOR NOTES WILL BE USED TO REPAY THE SANTA CRUZ CALIF COMPANY'S INDEBTEDNESS CITICORP VENTURE CAPITAL LTD WILL BECOME THE COMPANY'S BIGGEST STOCKHOLDER WITH A 36 STAKE THE COMPANY MAKES TELEPHONE HEADSETS COMANAGERS OF THE OFFERING ARE SMITH BARNEY SHEARSON INC AND PRUDENTIAL SECURITIES INC 9401200104 940120 REVIEW & OUTLOOK EDITORIAL ASIDES TERMLIMIT DODGE FOILED INCUMBENTS ARE ENDLESSLY CREATIVE IN TRYING TO AVOID THE TERMLIMIT LAWS THAT PASS EVERYWHERE THEY'RE ON THE BALLOT BUT SAVVY VOTERS AREN'T LETTING THEM GET AWAY WITH IT WHEN HOUSTON VOTERS APPROVED LOCAL TERM LIMITS IN 1991 CITY COUNCIL MEMBERS CREATED A LOOPHOLE THAT ALLOWED THEM TO RUN AGAIN IF THEY COLLECTED A CERTAIN NUMBER OF VOTER SIGNATURES CITIZEN GROUPS PUT A MEASURE ON LAST SATURDAY'S BALLOT TO CLOSE THAT ESCAPE HATCH THE CITY COUNCIL THEN PUT A COMPETING PROPOSAL ON THE BALLOT TO SIMPLY REPEAL THE TERMLIMIT LAW THE RESULTS WERE UNAMBIGUOUS 73 OF VOTERS FAVORED CLOSING THE TERMLIMIT LOOPHOLE AN EVEN LARGER 79 MAJORITY OPPOSED ENDING TERM LIMITS IT'S BECOMING CLEAR VOTERS DON'T JUST FAVOR LIMITS ON POLITICAL TENURE BECAUSE THEY'RE MAD AT CONGRESS THEY BELIEVE TERM LIMITS ARE A NECESSARY CHECK ON AN ENTRENCHED POLITICAL CLASS AT ALL LEVELS OF GOVERNMENT 9401200103 940120 BUSINESS BRIEF D&B WILL TAKE FOURTHQUARTER CHARGE OF 167 MILLION TO TRIM ITS OPERATIONS DUN & BRADSTREET CORP SAID IT WILL TAKE A 167 MILLION CHARGE FOR THE 1993 FOURTHQUARTER TO CLOSE OFFICES AND CONSOLIDATE SEVERAL FUNCTIONS AS A RESULT THE BIG WESTPORT CONN INFORMATION SERVICES COMPANY SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 26 MILLION OR 15 CENTS A SHARE SHARPLY LOWER THAN THE 176 MILLION OR 99 CENTS A SHARE IT EARNED A YEAR EARLIER BUT THE COMPANY SAID THAT EXCLUDING THE CHARGE EARNINGS FOR THE QUARTER WOULD HAVE RISEN 93 TO 193 MILLION OR 110 A SHARE REVENUE INCREASED 24 TO 132 BILLION FROM 129 BILLION D&B SAID THE STEPS SHOULD PRODUCE ANNUAL SAVINGS OF ABOUT 100 MILLION WITHIN THE NEXT FEW YEARS THE CHANGES INCLUDE REDUCING THE NUMBER OF D&B DATA CENTERS FROM 27 LARGELY INDEPENDENT CENTERS WORLDWIDE TO SEVERAL INTEGRATED PROCESSING SITES ABLE TO HANDLE THE COMPANY'S NEEDS AT LOWER COST REDUCING REAL ESTATE COSTS BY SHARING FACILITIES IN MAJOR CITIES IN THE US AND EUROPE CONSOLIDATING BACKOFFICE ACCOUNTING FUNCTIONS INTO ONE CENTER CONSOLIDATING INTERNATIONAL ACCOUNTING OPERATIONS INTO SEVERAL CENTERS AND CONVERTING TO A SINGLE ACCOUNTING SYSTEM ROBERT E WEISSMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID SAVINGS FROM THESE MEASURES WILL BE USED TO ACCELERATE REVENUE GROWTH WITH DEVELOPMENT OF NEW PRODUCTS ACQUISITIONS AND OTHER EXPANSION MOVES THE CHARGE 256 MILLION ON A PRETAX BASIS REFLECTED 303 MILLION FOR RESTRUCTURING PARTIALLY OFFSET BY ONETIME GAINS OF 26 MILLION FROM A DIVESTITURE AND 21 MILLION FROM THE INITIAL PUBLIC OFFERING OF ITS MAJORITYOWNED GARTNER GROUP D&B SAID THE NEWEST ROUND OF RESTRUCTURINGS WOULDN'T INCLUDE ANY NEW WORKFORCE REDUCTIONS LAST YEAR THE COMPANY SAID IT WOULD CUT SEVERAL THOUSAND JOBS AS PART OF A COSTCUTTING EFFORT THE COMPANY SAID THE CONTINUING EFFORT TO CUT COSTS AND IMPROVE PERFORMANCE IS BEGINNING TO IMPROVE OPERATING MARGINS FOR 1994 THE COMPANY ANTICIPATES PERSHARE EARNINGS WILL INCREASE MORE THAN 84 FROM 1993'S PRELIMINARY OPERATING PROFIT OF 336 A SHARE THE OPERATING PROFIT EXCLUDES ACCOUNTING CHARGES AND THE FOURTHQUARTER RESTRUCTURING CHARGE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY D&B SHARES DROPPED 125 CENTS TO 61625 9401200102 940120 PENNZOIL GETS 9565 MILLION IRS DEMAND AGENCY SEEKS BACK TAXES ON FIRM'S SETTLEMENT FROM TEXACO DISPUTE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON PENNZOIL CO SAID THE INTERNAL REVENUE SERVICE WILL SEEK 9565 MILLION IN TAXES AND INTEREST ON THE 3 BILLION SETTLEMENT PENNZOIL RECEIVED FROM TEXACO INC IN 1988 THE LONGAWAITED IRS POSITION ON PENNZOIL'S 1988 TAXES CAME AFTER A LENGTHY AUDIT THAT BASICALLY REJECTED PENNZOIL'S POSITION ON HOW THE PROCEEDS OF ITS TEXACO SETTLEMENT SHOULD BE TAXED THE IRS DECISION IN ESSENCE REQUIRES PENNZOIL TO RESTATE ITS 1988 RESULTS TO INCLUDE A LARGE PORTION OF THE SETTLEMENT AS TAXABLE INCOME FOR THAT YEAR TEXACO PAID PENNZOIL TO SETTLE BITTER LITIGATION THAT HAD RESULTED IN AN HISTORIC 11 BILLION JURY AWARD TO PENNZOIL AND A FILING FOR TEXACO UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE JAMES PATE PENNZOIL'S CHIEF EXECUTIVE OFFICER SAID PENNZOIL HAS THE FINANCIAL FLEXIBILITY TO DEAL WITH ANY EVENTUALITY THAT MAY OCCUR IN CONNECTION WITH THIS DISPUTE INCLUDING THE POSSIBILITY OF PAYING ANY TAX ASSESSMENT AND SUING FOR A REFUND IF PENNZOIL IS NOT ABLE TO RESOLVE THE MATTER THROUGH DISCUSSIONS WITH THE IRS PENNZOIL STRESSED THAT IT DOESN'T HAVE TO MAKE ANY PAYMENTS AT THE MOMENT AND THAT IT PLANS TO FORMALLY PROTEST THE PROPOSED TAX DEFICIENCY WITHIN 30 DAYS THE COMPANY SAID THE APPEALS PROCESS WITHIN THE IRS COULD TAKE AS LONG AS SIX MONTHS A PENNZOIL SPOKESMAN SAID THAT ALTHOUGH THE COMPANY HAS HAD CONTACT WITH IRS AGENTS DURING THE AUDIT THE APPEAL WILL BE PENNZOIL'S FIRST OPPORTUNITY TO FULLY PRESENT THE LEGAL BASIS FOR THE COMPANY'S TAX POSITION THE SPOKESMAN SAID PENNZOIL WOULD CHALLENGE THE IRS POSITION IN COURT IF NECESSARY ADDING WE FEEL CONFIDENT ABOUT OUR LEGAL POSITION AND FEEL THE MATTER CAN BE RESOLVED IN AN ACCEPTABLE MANNER IRS OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY PENNZOIL DISCLOSED THE IRS'S POSITION AFTER THE MARKETS CLOSED ITS SHARES ENDED AT 5550 UP 75 CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE AMOUNT OF THE PROPOSED IRS LEVY IS HUGE FOR A COMPANY PENNZOIL'S SIZE IN THE FIRST NINE MONTHS OF 1993 PENNZOIL HAD NET INCOME OF 494 MILLION OR 121 A SHARE ON REVENUE OF 2 BILLION THE DISPUTE STEMS FROM PENNZOIL'S 1984 AGREEMENT TO ACQUIRE A PORTION OF GETTY OIL CO WHICH TEXACO ENDED UP BUYING IN ITS ENTIRETY PENNZOIL SUED FOR TORTIOUS INTERFERENCE WON ITS HISTORIC JUDGMENT AND IN 1988 RECEIVED THE 3 BILLION SETTLEMENT FROM TEXACO OVER THE NEXT THREE YEARS PENNZOIL PAID TAXES ON 800 MILLION OF THE SETTLEMENT AND USED THE REST 22 BILLION TO BUY CHEVRON CORP STOCK PENNZOIL SAID IT WILL ARGUE TO THE IRS THAT ITS INVESTMENT IN CHEVRON STOCK IS IN EFFECT AN INVESTMENT IN REPLACEMENT PROPERTY SIMILAR TO THE PROPERTY LOST TO TEXACO PENNZOIL MAINTAINS THAT A PIECE OF THE IRS TAX CODE CALLED SECTION 1033 ALLOWS PENNZOIL TO RECEIVE CASH FOR ITS LOST PROPERTY AND NOT HAVE TO TREAT IT AS TAXABLE INCOME IF THE COMPANY REINVESTS THE PROCEEDS IN A SIMILAR PROPERTY PENNZOIL IS EXPECTED TO ARGUE THAT SINCE CHEVRON LIKE GETTY IS A LARGE OIL COMPANY WITH SIZABLE ASSETS IN CALIFORNIA THE PURCHASE OF CHEVRON STOCK FITS THE DEFINITION IN ITS FIRST SALVO THE IRS DISAGREED THE AGENCY SAID THAT PENNZOIL SHOULD INCREASE ITS 1988 INCOME BY 22 BILLION AND THAT IT OWES TAXES ON THAT SUM OF 5509 MILLION PENNZOIL ESTIMATED THAT INTEREST ON THE PROPOSED TAX WOULD BE ABOUT 2343 MILLION IN ADDITION THE IRS SEEKS TO DISALLOW ABOUT 366 MILLION OF DEDUCTIONS THAT PENNZOIL TOOK FOR LITIGATION AND RELATED EXPENSES ON ITS 1988 TAX RETURN IN CONNECTION WITH THE TEXACO SUIT PENNZOIL SAID THAT ADDS ANOTHER 1246 MILLION IN DEFICIENT TAXES PENNZOIL SAID WITH INTEREST OF 467 MILLION ON THAT DEFICIENCY PENNZOIL HAS SOLD AND EXCHANGED MORE THAN TWOTHIRDS OF ITS STAKE IN CHEVRON WHICH AT ONE POINT AMOUNTED TO A 94 INTEREST IN THE COMPANY THE LAST TRANSACTION WAS A SALE LAST NOVEMBER OF CHEVRON STOCK THAT RESULTED IN PROCEEDS TO PENNZOIL OF 721 MILLION AT THE TIME A NUMBER OF ANALYSTS SPECULATED THAT PENNZOIL SOLD THE SHARES BECAUSE IT FEARED AN ADVERSE IRS RULING 9401200101 940120 OFFERINGS OF STOCK PLANNED FOR UNITED TECHNOLOGIES UNIT BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP SAID IT WILL ISSUE TWO SEPARATE CLASSES OF STOCK IN ITS AUTOMOTIVE UNIT IN A MOVE THAT WOULD HELP IT RAISE GROSS PROCEEDS OF 791 MILLION TO 830 MILLION THE HARTFORD CONN COMPANY SAID IT WILL USE THE MONEY TO REDUCE DEBT INCREASE ITS DIVIDEND AND EXPAND ITS OTHER BUSINESSES THE OFFERING WILL CONSIST OF AS MANY AS 196 MILLION SHARES OF UTA CLASS A COMMON STOCK THE COMPANY SAID THE CLASS A SHARES ARE EXPECTED TO GIVE IT BETWEEN 40 AND 44 EQUITY INTEREST IN THE AUTOMOTIVE UNIT UNITED TECHNOLOGIES AUTOMOTIVE OR UTA BUT UNITED TECHNOLOGIES WILL RETAIN CONTROL THROUGH AN ISSUE OF CLASS B COMMON STOCK WHICH WILL REPRESENT BETWEEN 56 AND 60 OF THE EQUITY INTEREST OF UTA UNITED TECHNOLOGIES WILL HAVE THE POWER TO ELECT 80 OF THE DIRECTORS OF UTA UNITED TECHNOLOGIES' AUTOMOTIVE UNIT BASED IN DEARBORN MICH HAD AN OPERATING PROFIT OF 111 MILLION ON SALES OF 238 BILLION IN 1992 THE DIVISION MAKES ELECTRICAL AND INTERIORTRIM COMPONENTS ROBERT F DANIELL CHAIRMAN OF UNITED TECHNOLOGIES SAID THE MARKETS CUSTOMERS AND PRODUCT OFFERINGS OF THE AUTOMOTIVE DIVISION ARE OUTSIDE OF THE CORE AEROSPACE AND BUILDINGSYSTEMS BUSINESSES OF THE PARENT COMPANY HE SAID THE STOCK OFFERING PROVIDES UNITED TECHNOLOGIES WITH AN OPPORTUNITY GIVEN CURRENT MARKET CONDITIONS TO UNLOCK A PORTION OF ITS INVESTMENT IN UT AUTOMOTIVE THE OFFERING WILL CONSIST OF 17800000 SHARES OF UTA CLASS A COMMON STOCK AND AN OVERALLOTMENT OPTION FOR THE UNDERWRITERS TO BUY AS MUCH AS AN ADDED 1780000 SHARES THE COMPANY SAID IT HAS APPLIED FOR LISTING THE STOCK ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID THE OFFERING PRICE IS EXPECTED TO BE BETWEEN 22 AND 24 A SHARE AT THOSE PRICES PROCEEDS TO THE COMPANY WOULD BE BETWEEN 431 MILLION AND 470 MILLION LESS EXPENSES RELATED TO THE OFFERING IN ADDITION UTA WILL PAY 360 MILLION IN DIVIDENDS TO THE PARENT COMPANY PRIOR TO THE STOCK OFFERING THE COMPANY SAID THE CLASS B STOCK PROVIDES IT THE FLEXIBILITY TO RETAIN A CONTROLLING INTEREST IN UTA OR TO DISTRIBUTE ALL OR A PORTION OF ITS REMAINING SHARES IN THE UNIT THE COMPANY SAID THAT IF IT DECIDES TO DIVEST ITSELF OF ITS EQUITY IN THE UNIT THAT IT WOULD DO SO THROUGH PUBLIC OFFERINGS OR PRIVATE PLACEMENTS OR POSSIBLY THROUGH A TAXFREE DIVIDEND TO UNITED TECHNOLOGIES' SHAREHOLDERS THE COMPANY SAID THE CURRENT MANAGEMENT WILL CONTINUE TO OPERATE AT THE AUTOMOTIVE UNIT AND THAT THE OFFERING WON'T AFFECT EMPLOYEE BENEFITS AND CONTRACTS THE COMPANY SAID IT HAS FILED A REGISTRATION STATEMENT GOVERNING THE OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION AND THAT IT WOULD OFFER THE STOCK AFTER IT BECOMES EFFECTIVE LEHMAN BROTHERS SALOMON BROTHERS AND LAZARD FRERES WILL ACT AS MANAGING UNDERWRITERS FOR THE OFFERING UNITED TECHNOLOGIES CLOSED AT 6550 UP 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9401200100 940120 DIVIDEND NEWS WASHINGTON FEDERAL SAVINGS WASHINGTON FEDERAL SAVINGS SEATTLE SAID IT DECLARED A 10 COMMON STOCK DIVIDEND PAYABLE FEB 18 TO STOCK OF RECORD FEB 1 THE PAYOUT OF THE HIGHLY PROFITABLE THRIFT WILL INCREASE SHARES OUTSTANDING TO 398 MILLION FROM 362 MILLION 9401200099 940120 TECHNOLOGY & HEALTH COLUMBIAHCA MERGER BACKED BY FTC STAFF BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE STAFF OF THE FEDERAL TRADE COMMISSION HAS RECOMMENDED THAT THE AGENCY APPROVE THE MERGER OF COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA ACCORDING TO PEOPLE FAMILIAR WITH THE FTC'S REVIEW ALTHOUGH ESSENTIALLY ENDORSING THE MERGER THE STAFF'S RECOMMENDATION RAISES MINOR CONCERNS ABOUT THE MERGED COMPANIES' COMBINED MARKET POWER IN TWO SOUTHEASTERN MARKETS AN INDIVIDUAL FAMILIAR WITH THE CASE SAID BEFORE GIVING FINAL AUTHORIZATION FOR THE DEAL THE FTC IS LIKELY TO REQUIRE THE COMPANIES TO SELL AT LEAST ONE HOSPITAL IN EACH OF THESE MARKETS THE FTC'S FIVE COMMISSIONERS WHO GENERALLY FOLLOW STAFF RECOMMENDATIONS TO APPROVE MERGERS ARE EXPECTED TO VOTE WITHIN THE NEXT TWO WEEKS THE STAFF'S OPINION IN THE CASE SUGGESTS THAT ANTITRUST OFFICIALS WILL PROBABLY SMILE ON EVEN THE BIGGEST MERGERS IN THE CURRENT WAVE OF HOSPITAL CONSOLIDATION COLUMBIA'S 57 BILLION ACQUISITION OF NASHVILLE TENNBASED HCA WOULD COMBINE THE NATION'S TWO LARGEST FORPROFIT HOSPITAL CHAINS INTO A GIANT THAT HAS SIGNALED ITS INTENTION TO CONTINUE BUYING HOSPITALS COLUMBIA IS BASED IN LOUISVILLE KY THE STAFF RECOMMENDATION ALSO SHOWS THAT ANTITRUST HURDLES MAY NOT BE AS BIG A PROBLEM AS SOME IN THE INDUSTRY HAVE SUGGESTED THE AMERICAN HOSPITAL ASSOCIATION AND OTHER INDUSTRY GROUPS HAVE BEEN PUSHING HARD FOR RELAXATION OF THE ANTITRUST LAWS ON HOSPITAL MERGERS AND JOINT VENTURES SOME LAWYERS SAID THE RECOMMENDATION WOULD BE CONTROVERSIAL BECAUSE IT APPEARS TO CONFLICT WITH PREVIOUS DECISIONS TO BLOCK MERGERS OF HOSPITAL COMPANIES THAT WERE MUCH SMALLER THAN THESE LETTING THIS TRANSACTION CLEAR IS A RELAXATION OF ENFORCEMENT AS WE'VE UNDERSTOOD IT SAID TOM CAMPBELL AN ANTITRUST LAWYER AT GARDNER CARTON & DOUGLAS IN CHICAGO OTHER LAWYERS DISAGREED HOWEVER ABOUT HOW MUCH THE DECISION DIVERGED FROM PRECEDENT SPOKESPERSONS FOR COLUMBIA AND HCA SAID THE COMPANY IS IN DISCUSSIONS WITH THE FTC BUT DECLINED TO ELABORATE OTHER THAN TO SAY THE MERGER SHOULD BE COMPLETED BY FEB 10 OR SHORTLY THEREAFTER AS SCHEDULED AN FTC SPOKEWOMAN SAID IT IS AGENCY POLICY NOT TO COMMENT ON MERGERS UNDER REVIEW 9401200098 940120 SCOTT PAPER SEEKS DEBENTURES PHILADELPHIA SCOTT PAPER CO SAID IT MADE A TENDER OFFER FOR ITS 721 MILLION OF 11 1/2 DEBENTURES DUE 2015 THE MAKER OF PAPER PRODUCTS SAID THE PURCHASE WOULD REDUCE INTEREST COSTS A SPOKESMAN SAID THE OFFER PRICED IN RELATION TO CERTAIN TREASURY NOTES WOULD AMOUNT TO ABOUT 118 FOR EACH 100 OF DEBENTURES WHEREAS THE COMPANY WOULD HAVE TO PAY ONLY ABOUT 105 AT DEC 1 1995 THE FIRST DATE THE DEBENTURES COULD BE CALLED BY SCOTT 9401200097 940120 SEAGRAM RAISES ITS STAKE IN TIME WARNER TO 117 MONTREAL SEAGRAM CO RAISED ITS STAKE IN TIME WARNER INC NEW YORK TO 117 FROM 104 MAKING SEAGRAM THE LARGEST SHAREHOLDER IN TIME WARNER SEAGRAM'S HOLDINGS SURPASSED THE CAPITAL GROUP INC WHICH HAS 11 OF TIME WARNER STOCK ACCORDING TO TIME WARNER'S LATEST PROXY SEAGRAM A SPIRITS MAKER CURRENTLY HOLDS 44230000 SHARES OF TIME WARNER ACCORDING TO A FILING BY SEAGRAM YESTERDAY WITH THE SECURITIES AND EXCHANGE COMMISSION SEAGRAM TOOK ADVANTAGE OF A RECENT DECLINE IN TIME WARNER'S STOCK PRICE TO STEP UP ITS BUYING SEAGRAM ACQUIRED ABOUT 514 MILLION SHARES SINCE DEC 31 1993 FOR ABOUT 2072 MILLION SEAGRAM PAID BETWEEN 39 A SHARE AND 4437 A SHARE FOR ITS LATEST PURCHASES TIME WARNER CLOSED AT 39125 A SHARE YESTERDAY DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEAGRAM SAID IT PLANS TO ACQUIRE AS MUCH AS 15 OF TIME WARNER SEAGRAM AND TIME WARNER DECLINED TO COMMENT 9401200096 940120 WEDNESDAY'S MARKETS INDUSTRIALS HIT RECORD BONDS FALL POOR PROFIT REPORTS KEPT STOCKS LOWER FOR MOST OF THE DAY BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE PLOWED TO YET ANOTHER HIGH DESPITE A FLURRY OF DOWNBEAT PROFIT REPORTS THAT KEPT STOCKS LOWER MOST OF THE DAY BOND PRICES FELL AND THE DOLLAR WAS MIXED HITTING ITS SEVENTH RECORD OF THE YEAR THE INDUSTRIAL AVERAGE CLIMBED 1408 POINTS TO 388437 STANDARD & POOR'S 500STOCK INDEX EDGED UP 005 TO 47430 BUT THE NASDAQ COMPOSITE INDEX HURT BY HEAVY SELLING IN THE TECHNOLOGY ARENA SLUMPED 374 TO 78928 YOU HAD A COUPLE OF BAD EARNINGS REPORTS IN THE DRUG AND TECHNOLOGY SECTORS AND THAT SPARKED SOME CONCERNS ABOUT PROFITS FOR THE QUARTER SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS STOCKS STARTED THE DAY LOWER AS INVESTORS UNIMPRESSED BY FINANCIAL RESULTS FROM INTEL AND DIGITAL EQUIPMENT BEGAN HAMMERING AWAY AT THE STOCKS DIGITAL FELL 3 TO 32 AND INTEL SANK 4 TO 62 DESPITE REPORTING A 38 JUMP IN FOURTHQUARTER PROFITS LATE TUESDAY ADDING TO STOCK MARKET WOES WAS NEWS THAT PFIZER CONSIDERED BY MANY TO BE THE STRONGEST DRUG COMPANY HAD A DISCOURAGING FOURTHQUARTER PFIZER TUMBLED 5 TO 62 7/8 OTHER DRUG STOCKS WERE PUMMELED SCHERINGPLOUGH LOST 1 7/8 TO 64 3/8 ELI LILLY 1 5/8 TO 59 7/8 AND MERCK 3/4 TO 35 7/8 BUT DESPITE THE BARRAGE OF BAD NEWS STOCK INVESTORS HARDLY FLINCHED I THINK PEOPLE WERE ENCOURAGED BY THE FACT THAT THE MARKET DIDN'T CRACK SAYS LASZLO BIRINYI WHO HEADS A FINANCIAL SERVICES COMPANY THAT BEARS HIS NAME EVEN THOUGH YOU HAD A BOND MARKET WHICH WAS A LIABILITY AND A NUMBER OF KEY NAMES WHICH TRADED POORLY THE MARKET DIDN'T BREAK MEANWHILE IN EUROPE SIGNS OF RENEWED ECONOMIC GROWTH AND EXPECTATIONS OF LOWER INTEREST RATES PROPELLED STOCK MARKETS IN LONDON ZURICH AMSTERDAM MADRID STOCKHOLM OSLO AND HELSINKI TO RECORD HIGHS BRITISH FRENCH AND GERMAN STOCK MARKETS EACH ROSE 1 TO 12 WILD GYRATIONS CONTINUED TO PLAY HAVOC WITH STOCK MARKETS IN ASIA MANILA SOARED 52 HONG KONG CLIMBED 31 AND TOKYO ROSE 28 BUT STOCKS IN KUALA LUMPUR FELL 26 AND THOSE IN BANGKOK WERE OFF 12 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 077 TO 11421 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3108 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1144 ISSUES ROSE AND 983 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 629 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17460 MARKS AND 11135 YEN COMPARED WITH 17465 MARKS AND 11075 YEN LATE TUESDAY 9401200095 940120 BUSINESS BRIEFS PRICE/COSTCO INC IS CLOSING FOUR OF ITS WAREHOUSE STORES IN CALIFORNIA AND CONNECTICUT TO ELIMINATE OVERLAP RESULTING FROM THE OCTOBER MERGER OF PRICE CO AND COSTCO WHOLESALE CORP THE CLOSINGS WERE ANTICIPATED AND THEIR COSTS INCLUDED IN A 120 MILLION MERGER AND RESTRUCTURING RESERVE SET ASIDE DURING THE FISCAL FIRST QUARTER ENDED NOV 21 VF CORP IS COMPLETING ITS ACQUISITION OF NUTMEG INDUSTRIES INC TAMPA FLA FOR 309 MILLION LAST MONTH VF OFFERED 1750 A SHARE TO THE STOCKHOLDERS OF NUTMEG NEARLY 18 MILLION SHARES OR ROUGHLY 95 OF NUTMEG'S COMMON STOCK WERE TENDERED AS OF TUESDAY ALLOWING VF TO COMPLETE ACQUISITION BY THE END OF THE MONTH NOBLE DRILLING CORP HOUSTON WILL ACQUIRE TRITON ENGINEERING SERVICES CO HOUSTON TERMS WEREN'T DISCLOSED CROWN RESOURCES CORP'S 86OWNED UNIT SOLITARIO RESOURCES CORP ACQUIRED AN OPTION TO PURCHASE SEVEN EXPLORATION PROPERTIES IN ARGENTINA CONTAINING COPPER GOLD AND SILVER THE SELLER AND TERMS WEREN'T DISCLOSED 9401200094 940120 REMEDIAL TEACHING OFTEN IS PERFORMED BY UNTRAINED AIDES MOST SUCH INSTRUCTORS LACK DEGREES A REPORT SAYS GROUP URGES CERTIFICATION BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEARLY HALF OF ALL INSTRUCTORS WHO DO REMEDIAL WORK WITH DISADVANTAGED CHILDREN ARE UNTRAINED AIDES A STUDY BY THE INTERNATIONAL READING ASSOCIATION FOUND MORE THAN 80 OF THESE AIDES HAVE ONLY HIGHSCHOOL DIPLOMAS YET THEY TEACH AN AVERAGE OF 31 STUDENTS EACH DAY ACCORDING TO THE REPORT ONEFIFTH OF THE AIDES DO THEIR JOBS WITHOUT REGULAR SUPERVISION FROM LICENSED TEACHERS IT SAID WHERE THE POVERTY OF SCHOOLS IS GREATEST THE NUMBER OF AIDES IS HIGHEST SAID RICHARD LONG THE ASSOCIATION'S LOBBYIST WHO ARGUED THAT THE MOST DISADVANTAGED CHILDREN NEED THE BEST INSTRUCTION AVAILABLE THE ASSOCIATION A NONPROFIT GROUP OF READING TEACHERS WANTS THE CLINTON ADMINISTRATION TO HELP TRAIN TEACHERS' AIDES BY ESTABLISHING A CERTIFICATION PROGRAM SIMILAR TO ONE USED BY HEAD START PRESCHOOL PROGRAMS TRAINING WITH CLASSES ON LEARNING CHILD DEVELOPMENT AND READING INSTRUCTION WOULD COST ABOUT 950 A PERSON OR 579 MILLION FOR ALL 65000 AIDES MR LONG ESTIMATED THE EDUCATION DEPARTMENT HAS PROPOSED THAT CONGRESS SET ASIDE MONEY FOR AIDES' AND TEACHERS' PROFESSIONAL DEVELOPMENT WHEN IT REAUTHORIZES THE CHAPTER 1 PROGRAM FOR DISADVANTAGED CHILDREN CONGRESS WILL CONSIDER THE CHAPTER 1 LEGISLATION LATER THIS YEAR THE CHAPTER 1 PROGRAM HAS BEEN RECEIVING 7 BILLION ANNUALLY AND IS EXPECTED TO GET AN INCREASE OF ABOUT 700 MILLION A YEAR DURING THE LAST DECADE FINANCIALLY STRAPPED SCHOOLS HAVE BEEN HIRING AIDES AT MORE THAN TWICE THE PACE THEY HIRE TEACHERS BY USING AIDES THEY CAN REDUCE PUPILTEACHER RATIOS AT HALF THE COST OF ADDING ADDITIONAL TEACHERS BUT THE ASSOCIATION REPORT SAID THERE IS NO EVIDENCE THAT AIDES HAVE A POSITIVE EFFECT ON CHILDREN'S LEARNING SOME STUDIES SHOW THAT AIDES CAN BE COUNTERPRODUCTIVE FOSTERING CHILDREN'S DEPENDENCY BY THE WAY THEY TEACH AIDES ARE MORE LIKELY THAN TEACHERS TO SIMPLY ANSWER CHILDREN'S QUESTIONS RATHER THAN SHOW STUDENTS HOW TO FIGURE OUT ANSWERS FOR THEMSELVES MR LONG SAID AIDES ALSO ARE MORE LIKELY TO TEACH READING THROUGH WORKBOOK EXERCISES THAN THROUGH DISCUSSING TEXTS EVEN THOUGH SUCH EXERCISES HAVE BEEN SHOWN TO HAVE LESS EDUCATIONAL VALUE MR LONG ADDED 9401200093 940120 TIME WARNER AND SONY PUSH GLOBAL VENTURE RECORD GIANTS LEAD TALKS ON MUSICVIDEO SERVICE RIVALING VIACOM'S MTV BY LAURA LANDRO AND MEG COX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE WORLD'S LARGEST RECORD COMPANIES LED BY SONY CORP'S SONY MUSIC AND TIME WARNER INC'S WARNER MUSIC GROUP ARE DISCUSSING THE FORMATION OF A WORLDWIDE TELEVISED MUSICVIDEO SERVICE THAT COULD BE THE FIRST SIGNIFICANT COMPETITOR TO VIACOM INC'S MTV NETWORKS OTHER RECORD COMPANIES INVOLVED IN THE DISCUSSIONS ARE EMI MUSIC A UNIT OF THORN EMI PLC AND POLYGRAM 80OWNED BY PHILIPS ELECTRONICS NV NEITHER COULD BE REACHED FOR COMMENT SONY DECLINED TO COMMENT AND TIME WARNER SAID WE DON'T COMMENT ON TRANSACTIONS THAT HAVEN'T BEEN CONSUMMATED ACCORDING TO PEOPLE INVOLVED IN THE TALKS THE PARTNERS INITIALLY PLAN TO LAUNCH A NUMBER OF LOCAL MUSICVIDEO SERVICES IN DIFFERENT LANGUAGES OVERSEAS IN SOME OF MTV'S FASTESTGROWING EUROPEAN AND ASIAN MARKETS EVENTUALLY HOWEVER AS CHANNEL CAPACITY INCREASES IN US CABLE SYSTEMS A NEW VIDEO CHANNEL WILL BE LAUNCHED IN THE US ALL THE CHANNELS WOULD PLAY MUSIC VIDEOS AND POSSIBLY SELL TAPES COMPACT DISKS AND OTHER MERCHANDISE THE TIME WARNERSONY PLAN IS BOLD AND RISKY IT WOULD TAKE HUNDREDS OF MILLIONS OF DOLLARS TO MATCH MTV'S FORMIDABLE REACH AND REPLICATE ITS GLOBALLY RECOGNIZED TRADEMARK ITS PRIMARY 24HOUR MUSIC CHANNEL MTV REACHES 57 MILLION HOMES IN THE US AND A SISTER SERVICE VH1 IS RECEIVED IN 47 MILLION HOMES IN EUROPE MTV ALREADY IS IN 58 MILLION HOMES THE COMPANY ESTIMATES TOTAL WORLDWIDE VIEWERSHIP AT 251 MILLION HOMES IN THE US MTV SOON WILL BEGIN TESTING THE SALE OF MUSIC AND RELATED MERCHANDISE ON TV THERE IS WIDESPREAD SPECULATION IN THE MUSIC INDUSTRY THAT THE PARTNERS IN THE TIME WARNERSONY VENTURE MAY ATTEMPT TO PROVIDE THEIR VIDEOS EXCLUSIVELY TO THEIR STARTUP SERVICE OVERSEAS REFUSING TO SUPPLY THEM TO MTV SUCH A MOVE COULD RAISE MAJOR ANTITRUST PROBLEMS IN THE US AND PROBABLY IN EUROPE AS WELL BUT PEOPLE INVOLVED IN THE SONYTIME WARNER VENTURE SAID THE TWO COMPANIES HAVEN'T ANY PLANS TO WITHHOLD THEIR MUSIC VIDEOS FROM MTV VIACOM OFFICIALS SAID THAT THEY ARE AWARE OF THE TIME WARNERSONY PLAN AND AREN'T WORRIED ABOUT IT UNLESS THE RECORD COMPANIES DO INTEND TO WITHHOLD THEIR PRODUCT FROM MTV TOM FRESTON MTV NETWORKS PRESIDENT SAID IF IT'S FAIR COMPETITION THAT'S FAIR AND IT'S GOOD RECORD INDUSTRY EXECUTIVES SAY THEY HAVE BECOME INCREASINGLY FRUSTRATED THAT MTV IS THE ONLY OUTLET FOR THEIR MUSIC VIDEOS VIDEOS ARE THE PRIMARY MARKETING TOOL USED TO SELL RECORDS AND MTV HAS LIMITED PLAYLISTS OR VIDEOS THAT IT REGULARLY AIRS IF MTV DECIDES NOT TO AIR A VIDEO THE RECORD COMPANIES HAVE LITTLE CHANCE OF SPURRING SALES CURRENTLY MTV IS THE ONLY SERVICE THAT PAYS RECORD COMPANIES TO USE MUSIC VIDEOS BUT RECORD COMPANIES OFTEN COMPLAIN THAT IT PAYS TOO LITTLE TIME WARNER AND SONY ARE SAID TO BE USING AN EXISTING PARTNERSHIP IN GERMANY CALLED VIVA AS THE PROTOTYPE FOR MUSICCABLE CHANNELS AROUND THE WORLD AND EVENTUALLY IN THE US THAT SERVICE ON THE AIR SINCE CHRISTMAS IS AVAILABLE IN 90 OF GERMANY'S CABLE HOUSEHOLDS UNLIKE MTV WHERE ALL THE VIDEO DEEJAYS SPEAK ENGLISH THE TIME WARNERSONY SERVICE ANTICIPATES OFFERING DIFFERENT MUSIC CHANNELS IN THE LOCAL LANGUAGE VIVA USES ONLY GERMANSPEAKING ANNOUNCERS EVEN WHEN PLAYING SONGS IN OTHER LANGUAGES AND 60 OF THE MUSIC IS GERMAN IN CHINA THE SERVICE PROBABLY WOULD BE IN MANDARIN AND IN LATIN AMERICA IN SPANISH THUS PEOPLE INVOLVED IN THE TALKS SAY THE CHANNELS WOULD BE POSITIONED AS ALTERNATIVES TO MTV SONY AND TIME WARNER HAVE BEEN PARTNERS FOR THREE YEARS IN THE COLUMBIA HOUSE RECORD CLUB IN THAT PARTNERSHIP MICHAEL P SCHULHOF SONY CORP OF AMERICA'S CHAIRMAN AND ROBERT MORGADO WARNER MUSIC GROUP CHAIRMAN ALREADY HAVEHATCHED A NUMBER OF JOINT VENTURES INCLUDING A DIGITAL CABLE RADIO SERVICE AND MUSIC CATALOGS THE TIME WARNERSONY VENTURE ISN'T THE FIRST OF ITS KIND TO BE ANNOUNCED ALTHOUGH ITS SCOPE COULD DWARF OTHER WOULDBE COMPETITORS OF MTV LAST SUMMER FOR EXAMPLE CABLE GIANT TELECOMMUNICATIONS INC ANNOUNCED IT WAS TEAMING WITH MIDSIZE RECORD COMPANY BERTELSMANN AG TO LAUNCH A HYBRID MUSICVIDEO HOMESHOPPING CABLE CHANNEL IN THE US THE PARTNERS SAID THE CHANNEL WOULD BE LAUNCHED FIRST IN TCI CABLE HOMES STARTING IN MID1994 ALTHOUGH IT DIDN'T SAY HOW MANY OF TCI'S 10 MILLION CABLE HOMES WOULD RECEIVE THE CHANNEL INITIALLY A TCI SPOKESMAN SAID HE WASN'T AWARE OF THE TIME WARNERSONY VENTURE BUT THE COMPANY HAD EXPECTED OTHER PLAYERS TO ENTER THE MUSIC MARKET SOME IN THE RECORD INDUSTRY HAVE SPECULATED THAT THE TCIBERTELSMANN DEAL HAS TAKEN A BACK SEAT SINCE TCI'S ANNOUNCED MERGER WITH BELL ATLANTIC CORP BUT ROBERT THOMSON A TCI SENIOR VICE PRESIDENT SAID WE'RE STILL WORKING ON A DEFINITIVE AGREEMENT WITH BERTELSMANN WE'RE STILL ON TRACK MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9401200092 940120 REBORN LA IMMIGRANT CITY BY RICHARD RODRIGUEZ FOLLOWING MONDAY'S EARTHQUAKE JOURNALISTS FROM ALL OVER THE COUNTRY HAVE BEEN MAKING WHAT IS BECOMING A REGULAR DISASTER VISIT TO CALIFORNIA FIRES MUD SLIDES UNEMPLOYMENT LINES RACE RIOTS EARTHQUAKES WHAT HAS HAPPENED TO THE STATE THAT ONCE ADVERTISED ITSELF TO THE WORLD AS GOLDEN THERE WAS BRYANT GUMBEL ON TODAY WONDERING TO CALIFORNIA GOV PETE WILSON IF PERHAPS LOS ANGELES IS A CITY CURSED AS IN THE CHARLTON HESTON BIBLE MOVIES COME TO CALIFORNIA AND DISCOVER GOLD COME TO CALIFORNIA AND GET ON WHEEL OF FORTUNE COME TO CALIFORNIA AND BECOME A MOVIE STAR COME TO CALIFORNIA AND BLEACH YOUR HAIR GET A DIVORCE AND CHANGE YOUR NAME FROM ITS AMERICAN BEGINNINGS CALIFORNIA WAS ADVERTISED BY REALESTATE AGENTS AND BUSINESSMEN AS A COMIC DESTINATION IN A NATION THAT REGARDED LAND AS THE METAPHOR FOR POSSIBILITY CALIFORNIA REPRESENTED THE EXTREME POSSIBILITY OF AMERICA THE LAST PLACE TO START ANEW GOLDEN CALIFORNIA WAS THUS NOT CREATED FROM THE DARK DESPAIR OF FOREIGN IMMIGRANTS BUT FROM SOME NATIVE AMERICAN AMBITION TO RECREATE THE MOST FAMOUS CALIFORNIANS HAVE BEEN INTERNAL IMMIGRANTS FROM PLACES LIKE BROOKLYN AND IOWA AND OKLAHOMA LUCILLE BALL WALT DISNEY THE JOAD FAMILY DARYL F ZANUCK HOW COULD TRAGEDY ATTACH TO SUCH A PLACE THERE WERE EARTHQUAKES AND OTHER NATURAL CALAMITIES IN CALIFORNIA BUT CALIFORNIANS CHOSE TO SEE IN THE RICH SOIL AND CLOUDLESS SKY A BENEVOLENT NATURE IF TODAY SOME CALIFORNIANS SENSE A BIBLICAL CURSE IN PAST DECADES CALIFORNIA HAD WRITTEN TRAGEDY OUT OF THE STATE'S SCRIPT THE AMERICAN PROTESTANT VERSION OF THE PLACE HAS BEEN MOST GLAMOROUS FOR ITS COMIC FAITH IN HISTORICAL DISCONTINUITY AND INDIVIDUALISM REGARDLESS OF WHO YOUR PARENTS WERE OR YOUR PAST YOU CAN BE ANYTHING YOU WANT IN CALIFORNIA YET THIS COMIC VISION IS GRADUALLY DARKENING AS EARLY AS THE 1860S WHEN CALIFORNIA WAS STILL MOSTLY SILENT SOME ECCENTRIC CALIFORNIANS WERE SOUNDING A TRAGIC INTUITION JOHN MUIR THE STATE'S FIRST ENVIRONMENTALIST STOOD ON THE MARIN HEADLANDS AMID DRIPPING PINES AND ANNOUNCED THAT THE AMERICAN DREAM HAD REACHED A POINT OF FINITUDE THE COASTLINE HIS MESSAGE TRAVELED WEST TO EAST BACK TO THE CROWDED CITIES OF THE EAST COAST WE HAVE RUN OUT OF LAND IN CALIFORNIA THE AMERICAN DREAM HAS LIMITS BUT WHO WAS WILLING TO LISTEN LATER ODD VOICES IN CALIFORNIA DETECTED A DARKNESS LOS ANGELES CLOTHED IN BRIGHT LIGHT AND DEEP SHADOWS NOIR LA THE MOST DISTINCTIVE LITERARY GENRE OF CALIFORNIA IN THIS CENTURY BECAME THE MYSTERY NOVEL A CRIME HAS BEEN COMMITTED IN PARADISE WHO IS THE CRIMINAL BUT THE GREATER DRAMA OF CALIFORNIA WAS STILL COMIC CALIFORNIANS HAD THE TWOCAR GARAGE AND FOURLANE FREEWAY REQUIRING NO TOLLS THEN LA GOT TOO CROWDED AND PEOPLE STARTED TALKING ABOUT NORTH COUNTY SAN DIEGO OR THEY HEADED INTO THE DESERT FOR SEVERAL GENERATIONS THERE WAS LAND ENOUGH IN CALIFORNIA LAND FOR SEPARATE HOUSES SEPARATE PATCHES OF LAWN WINKING SWIMMING POOLS BIGGER AND NEWER MALLS ONLY RECENTLY HAVE CALIFORNIANS BEGUN TO SPEAK OF THE CROWD EAST COAST JOURNALISTS WHO HAVE BEEN MAKING THEIR DISASTER VISITS HAVE TYPICALLY INTERVIEWED THE BLOND DIVORCEE WHO HAS HAD IT WITH LA THERE'S TOO MUCH CRIME TOO MUCH TRAFFIC TOO MUCH POLLUTION SHE'S LEAVING SHE SAYS THIS BETWEEN DRAGS ON HER CIGARETTE LEAVING FOR COLORADO OR SOME PLACE LIKE THAT THE IRONY OF COURSE IS THAT WHILE NATIVE CALIFORNIANS ARE TALKING ABOUT LEAVING THE STATE REMAINS THE DESTINATION OF CHOICE FOR FOREIGN IMMIGRANTS THE IRONY IS THAT THE FOREIGNBORN ARE BECOMING THE NEW OPTIMISTS NOW THEY HAVE BEEN LURED TO CALIFORNIA AS HAVE AMERICANS BEFORE THEM BY THE LURE OF THE PROTESTANT PROMISE OF NEW BEGINNINGS AS MUCH AS ANYONE THEY ARE BEWILDERED BY THE SHABBINESS OF THE STATE THEY CONFRONT THE KOREAN GROCERY STORE OWNER REMEMBERS HOW IN THE MOVIES EVERYONE WAS BLOND AND DROVE A CONVERTIBLE THE ONLY PEOPLE I'VE SEEN SINCE I CAME TO LOS ANGELES ARE BROWN AND BLACK SHE SAYS BEMUSED BUT STILL THE IMMIGRANTS COME EVEN AS A SADNESS FILLS NATIVEBORN CALIFORNIANS THE NEW SADNESS DO YOU KNOW WHERE I SPENT THE DIA DE LOS MUERTOS THIS PAST NOVEMBER THE DIA DE LOS MUERTOS IS THE NIGHT WHEN TRADITIONALLY INDIAN CATHOLICS IN MEXICO GO TO THE CEMETERY AND DRINK AND EAT AMID FAMILY TOMBSTONES THIS NOVEMBER I WAS AT THE PALM SPRINGS MUSEUM IN THE ANNENBERG AUDITORIUM ON THE DIA DE LOS MUERTOS PALM SPRINGS TRADITIONALLY HAS BEEN A PLACE IN CALIFORNIA WHERE PEOPLE DO NOT DIE THEY PASS AWAY AND PEOPLE DON'T GET OLD IN PALM SPRINGS THEY GET A FACE LIFT BUT THERE WE WERE GOLDEN CALIFORNIANS ON NOV 2 BEHAVING VERY MUCH LIKE MEXICAN PEASANTS BROODING OVER DEATH THE IMMIGRANTS MEANWHILE ARE BECOMING THE NEW PURITANS OF CALIFORNIA THEY WORK ALL THE TIME ASIANS ARE RESENTED FOR WORKING TOO HARD AT UCLA AND AT A TIME WHEN RICHARD GERE HAS BECOME CALIFORNIA'S MOST FAMOUS BUDDHIST SPANISH IS BECOMING THE NEW LANGUAGE OF PROTESTANTISM IN CALIFORNIA THE OTHER DAY IN TIJUANA I MET THREE MEXICAN EVANGELICALS WHO TOLD ME THEY WERE HEADED NORTH TO CONVERT CALIFORNIA BACK TO ITS PROTESTANT ROOTS FORTY YEARS AGO OCTAVIO PAZ THE GREAT POETESSAYIST OF MEXICO REMARKED IN THE LABYRINTH OF SOLITUDE HOW MUCH LOS ANGELES LOOKED LIKE A MEXICAN CITY MR PAZ SAW THE MEXICAN FACE OF LA IN THE CITY'S DELIGHT IN DECORATIONS CARELESSNESS AND POMP NEGLIGENCE PASSION AND RESERVE THE MEXICAN CITY HE THOUGHT MUST BE AT ODDS WITH THE NORTH AMERICAN WORLD OF PRECISION AND EFFICIENCY FORTY YEARS LATER IT SEEMS TO ME RATHER THE OTHER WAY AROUND EVERYWHERE TODAY THERE ARE MEXICANS CROWDED AT BUS STOPS WORKING IN RESTAURANTS IN FACTORIES GARDENING THE MEXICANS ADD A SOBRIETY TO THIS CITY FAMOUS FOR LEISURE THE MEXICANS ARE BUSY LEGALLY OR ILLEGALLY WORKING THERE ARE TIMES INDEED THEY SEEM OUT OF PLACE IN LOS ANGELES FOR WORKING SO HARD IN THE GOLDEN STATE IMMIGRANTS WILL BECOME THE NEW MOVIE STARS OF LOS ANGELES AND THE NEW GANGSTERS AND THE NEW COPS THE GOLDEN STATE WILL GIVE WAY TO SOMETHING MORE DUSTY A PLACE MORE FOREIGN THAN WE HAD EVER IMAGINED CALIFORNIA TO BE THIS WEEK LOS ANGELES SEEMS SO DUSTY AND WORN OLD AS ONLY A CITY OF BUSTED NEW BUILDINGS CAN LOOK THE FREEWAYS ARE BROKEN THE CITY'S FAMOUS FREEDOM IS JEOPARDIZED TWO YEARS AGO WHEN BLACK LA WAS IN A RAGE AFTER THE VERDICTS IN THE RODNEY KING BEATING CASE LATIN AMERICAN IMMIGRANTS JOINED IN THE CHAOS AS THE CROWDS CLIMBED IN AND OUT OF THE BROKEN MINIMALLS I THOUGHT THEN TO MYSELF THAT LA LOOKED LIKE A THIRD WORLD CITY THEN AS NOW AFTER THE MALIBU FIRES AND THE LINES OF UNEMPLOYED ENGINEERS AFTER THE FREEWAYS HAVE BEEN DAMAGED AND THE WATER TURNED IMPURE I THINK A MEXICAN SORT OF REDEMPTION AWAITS THE SHABBY CITY TWO YEARS AGO GOLDEN LA THE CITY FAMOUS AS A NONCITY OF SEPARATE SUBURBS AND DISCRETE FREEWAY EXITS WAS FORCED TO REALIZE IN A NIGHT OF TERROR THAT THE CITY WAS WHOLE THE DANGEROUS PART OF TOWN WAS NOT AFTER ALL SO VERY DISTANT FROM THE SAFE PART OF TOWN WHAT HAPPENED TO BLACK KIDS IN SOUTH CENTRAL IMPLICATED WHITE KIDS IN SANTA MONICA A MEXICAN KNOWLEDGE MEXICANS DRINK DARK BEER MEXICAN MEN SING WHEN THEY GET DRUNK MEXICAN MEN AND WOMEN GET UP IN THE EARLY MORNING AND WORK BECAUSE THEY KNOW THAT LIFE IS WORK AND HARD LA IS BECOMING A WORKING TOWN LIKE CHICAGO OR SEOUL OR MEXICO CITY THE NEW IMMIGRANTS MAY INJECT AN OPTIMISM INTO CALIFORNIA BUT NEVER AGAIN WILL THIS STATE BE ABLE TO RESUME ITS POSTWAR GLIBNESS LOS ANGELES IS DISCOVERING ITS TRAGIC ROLE LA IS DESTINED TO BECOME A CITY AND CALIFORNIA IS DESTINED TO BECOME A STATE WHERE PEOPLE ARE AWARE OF ONE ANOTHER CROWDED TOGETHER AND AWARE OF LIMITS AND AN UNRELIABLE NATURE CALIFORNIA IS BECOMING VERY MUCH THE PLACE THE SPANISH PRIESTS ENVISIONED WHEN AT THE FOUNDING OF THE CITY OF THE ANGELS THEY CAME NORTH FROM MEXICO AND BROUGHT WITH THEM IMAGES OF A BLEEDING CHRIST AND THEIR CONSOLATION COMMUNITY MR RODRIGUEZ AN EDITOR OF THE PACIFIC NEWS SERVICE IS THE AUTHOR OF DAYS OF OBLIGATION AN ARGUMENT WITH MY MEXICAN FATHER VIKINGPENGUIN 9401200091 940120 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE SOFTWARE INDUSTRY IS LEARNING HOW TO ADOPT HOLLYWOOD PRODUCTION VALUES IN ITS LATEST CROP OF MULTIMEDIA SOFTWARE THAT MEANS COMPUTER OWNERS THIS YEAR WILL BE ABLE TO CHOOSE ENTERTAINMENT AND EDUCATION TITLES THAT FINALLY RISE TO TV PRODUCTION QUALITY WHILE OFFERING THE VIEWER A REAL INTERACTIVE ROLE UNFORTUNATELY A FEW SOFTWARE COMPANIES ARE USING THOSE SLICK HOLLYWOOD TECHNIQUES TO PRODUCE STORY LINES FEATURING HOLLYWOOD CULTURAL VALUES AS WELL ESPECIALLY GRATUITOUS VIOLENCE AS A WAY OF SOLVING PROBLEMS AND THAT MEANS RESPONSIBLE PARENTS MAY HAVE TO VETO SOME OF THE MULTIMEDIA TITLES WITH THE BEST VISUAL AND AUDIO EFFECTS ON GROUNDS OF OFFENSIVE CONTENT TO HELP FAMILIES SORT IT ALL OUT HERE'S A BRIEF RUNDOWN ON THREE OF THE EARLIEST COMPUTER TITLES TO DISPLAY REAL TV QUALITIES ONE TUNELAND BY A STARTUP COMPANY CALLED 7TH LEVEL IS A WONDERFUL WHOLESOME INTERACTIVE CARTOON THAT USES THE BEST ANIMATION I'VE EVER SEEN ON A COMPUTER IT MAKES A PRESCHOOLER FEEL AS IF SHE'S CONTROLLING THE ACTION IN A SATURDAYMORNING CARTOON SHOW A SECOND WALLOBEE JACK SOON TO BE MARKETED BY WORDPERFECT IS ANOTHER TVLIKE ANIMATED FEATURE THAT LETS GRADESCHOOLERS SOLVE A MYSTERY THE THIRD CRITICAL PATH BY MEDIAVISION IS AN ACTION TITLE FOR OLDER KIDS AND ADULTS FEATURING A REAL ACTRESS AND REAL VIDEO SCENES THAT WASTES GREAT PRODUCTION TECHNIQUES TO TELL A HACKNEYED TALE FEATURING LITTLE BUT KILLING TUNELAND STARS A SMALL BEAR CALLED LIL' HOWIE WHOSE VOICE IS PROVIDED BY COMEDIAN HOWIE MANDEL THE BEAR PLAYS HIDEANDSEEK IN A SERIES OF RICHLY ILLUSTRATED AND ANIMATED STORYBOOK SETTINGS OLD MACDONALD'S FARMYARD A TRAIN STATION AND MORE THE IMAGES AND ANIMATIONS WERE HANDDRAWN AND THEN TRANSFERRED TO THE COMPUTER USING A TECHNIQUE CALLED ANTIALIASING WHICH ELIMINATES THE JAGGED EDGES FREQUENTLY FOUND IN COMPUTERIZED DRAWINGS THE RESULT IS STUNNING TVQUALITY ANIMATION THE FARM WIFE CHASING AROUND HER KITCHEN AFTER THE THREE BLIND MICE LOOKS JUST LIKE A SCENE OUT OF A WARNER BROTHERS CARTOON CHILDREN CLICKING ON NEARLY ANY OBJECT IN TUNELAND ARE REWARDED WITH ACTION SOUND OR MUSIC THE PROGRAM CONTAINS 40 OR SO FULLLENGTH SONGS BEAUTIFULLY ORCHESTRATED IN TREATMENTS RANGING FROM CLASSICAL TO COUNTRY TO ROCKANDROLL THERE'S EVEN A SEPARATE JUKEBOX PROGRAM THAT LETS KIDS JUST PLAY THE SONGS IF THEY'RE TIRED OF THE ANIMATED ADVENTURE TUNELAND WILL BE AVAILABLE IN STORES WITHIN A MONTH OR SO AT A PRICE OF UNDER 50 UNFORTUNATELY IT ONLY WORKS ON IBMCOMPATIBLES RUNNING MICROSOFT WINDOWS AND EQUIPPED WITH CDROM PLAYERS NO MACINTOSH OR DISKBASED VERSION IS PLANNED WORDPERFECT'S WALLOBEE JACK ALSO IS AN ANIMATED CARTOON THOUGH LESS IMPRESSIVE AND LESS EXTENSIVE THAN TUNELAND AIMED AT OLDER KIDS IT FOLLOWS A KANGAROO NAMED WALLOBEE JACK AS HE SEEKS TO RETRIEVE A FAMOUS AUSTRALIAN ARTIFACT BEFORE THE VILLAIN AN EVIL CROCODILE CAN GET IT THE PLAYER INTERACTS WITH THE GAME BY TRYING TO FIND HIDDEN HOT SPOTS ON THE SCREEN CONTAINING BOMBS THAT FOIL THE VILLAIN OR LIGHT BULBS THAT HELP THE HERO THE GAME HAS A SMARTALECK CARTOONISH QUALITY THE CROCODILE IS AFFLICTED WITH FAMILIAR DEVICES LIKE EXPLODING CIGARS AND INSULTS THE PLAYER IF SHE FAILS TO FOIL HIM UNFORTUNATELY IT GETS A LITTLE TOO CUTE AT TIMES A SLICK HOST INTERRUPTS AT LEAST ONCE TO TRY TO SELL THE USER A 15 WALLOBEE JACK TSHIRT AND IF YOU LOSE AND THE CROCODILE GRABS THE ARTIFACT HE PUNISHES YOU BY REBOOTING YOUR COMPUTER A DANGEROUS FEATURE WORDPERFECT WILL START SELLING WALLOBEE JACK AS PART OF ITS CONSUMER MAIN STREET LINE IN MARCH FOR BOTH PCS AND MACS WITH CDROM DRIVES THE TITLE AND OTHERS IN THE WALLOBEE JACK SERIES WERE DEVELOPED BY TUNE 1000 A CANADIAN COMPANY THAT HAS LICENSED THEM TO WORDPERFECT FINALLY THERE'S CRITICAL PATH BY MEDIAVISION A HIGHLY RESPECTED MAKER OF MULTIMEDIA HARDWARE THAT IS LAUNCHING A NEW SOFTWARE LINE CRITICAL PATH IS THE TALE OF A SORT OF MACHO WOMAN MUSCULAR AND ARMED WHO GETS TRAPPED IN THE FACTORY COMPLEX OF AN EVIL MADMAN IN THE AFTERMATH OF A NUCLEAR WAR SHE IS CONSTANTLY THREATENED WITH DEATH AND IS CONSTANTLY KILLING PEOPLE TO SURVIVE TECHNICALLY THE TITLE IS BRILLIANT FILMED AT A SPECIAL STUDIO USING A REAL ACTRESS AND SKILLFULLY MELDING VIDEO AND ANIMATION BUT IT'S A SHAME THAT A COMPANY WITH A GOOD REPUTATION HAS CHOSEN TO INTRODUCE SUCH GREAT TECHNOLOGY IN A TITLE THAT GLORIFIES VIOLENCE NOT ONLY IS THE THEME TRITE AND BORING IT JUST PILES ON MORE VIOLENT ENTERTAINMENT AT A TIME WHEN PARENTS ARE SAYING THAT ENOUGH IS ENOUGH AND IT ECHOES HOWEVER FAINTLY ANOTHER HOLLYWOOD THEME THAT OF THE STALKED WOMAN EVEN IF SHE IS ARMED SOME ADULTS MAY LIKE CRITICAL PATH WHICH IS FINE IT ISN'T GORY IN THE SENSE OF SHOWING BLOOD AND INTERNAL ORGANS FLYING AROUND AND I'M CERTAINLY NOT SAYING ALL INTERACTIVE COMPUTER TITLES SHOULD BE KIDS' CARTOONS OR EDUCATIONAL DRILLS ADVENTURE STORIES EVEN THOSE WITH A BIT OF VIOLENCE WOULD BE WELCOMED BY MOST REASONABLE PARENTS BUT STORIES LIKE CRITICAL PATH WITH A MAJOR FOCUS ON VIOLENT ACTION ARE A PROBLEM FOR MANY OF US CRITICAL PATH CARRIES A WARNING LABEL AND I'D LIKE TO ADD MY OWN DON'T BUY IT FOR A HOUSEHOLD WITH KIDS IF YOU'RE CONCERNED WITH THE EXCESS OF VIOLENCE IN ENTERTAINMENT I HOPE MEDIAVISION WILL CHOOSE A BETTER THEME THE NEXT TIME IT DECIDES TO USE ITS HOTTEST NEW TECHNOLOGY 9401200090 940120 LEISURE & ARTS BOOKSHELF THE FALL OF THE REICHMANNS BY JOE QUEENAN ONE MORNING IN MAY 1992 CANADIAN JOURNALIST WALTER STEWART WAS ON HIS WAY TO A COURT HEARING IN DOWNTOWN TORONTO WHEN HE RAN ACROSS A BEGGAR CLUTCHING A SIGN SAYING NO JOB THREE CHILDREN MR STEWART NO MOTHER TERESA JUST TOLD THE BEGGAR THAT IF HE WANTED TO SEE PEOPLE WHO HAD REAL MONEY PROBLEMS HE SHOULD FOLLOW HIM OVER TO COURTROOM C1 OF THE COURT OF ONTARIO GENERAL DIVISION THAT'S WHERE THE REICHMANN BROTHERS AT ONE TIME THE LARGEST PRIVATEPROPERTY DEVELOPERS IN THE WORLD NO 4 ON FORTUNE'S LIST OF THE WORLD'S WEALTHIEST FAMILIES WITH A NET WORTH OF 128 BILLION WERE SEEING THEIR HUMONGOUS REALESTATE EMPIRE CARVED INTO TINY PIECES WHAT COULD TURN OUT TO BE THE LARGEST BANKRUPTCY IN THE HISTORY OF MANKIND WAS TRIGGERED BY THE COLLAPSE OF THE REICHMANN'S CANARY WHARF PROJECT A DARING ATTEMPT TO LIFT A FUTURISTIC COMMERCIAL CENTER OUT OF THE SLIME ON AN OUTCROP OF LAND IN THE GROTTY EAST END OF LONDON TODAY TOURISTS CAN HOP ON A DAINTY LITTLE ELECTRIC TRAIN IN DOWNTOWN LONDON AND MAKE THE 23MINUTE TRUNDLE OVER TO THIS OTTAWAONTHETHAMES THERE THEY CAN SIP A CAPPUCCINO IN COMPLETE PRIVACYTHERE ARE VERY FEW TENANTS IN THE SKYSCRAPERS TO COME OUT AND BOTHER THEM THE RISE AND FALL OF THE REICHMANNS IS THE SUBJECT OF MR STEWART'S INTELLIGENT AND UNEXPECTEDLY COMPASSIONATE BOOK TOO BIG TO FAIL MCCLELLAND & STEWART 335 PAGES 2395 UNLIKE MOST OTHER JOURNALISTS WRITING ABOUT HUMBLED TYCOONS MR STEWART RESISTS THE IMPULSE TO GLOAT WHEREAS THE MISFORTUNES OF SUCH SNAKEOIL SALESMEN AS DONALD TRUMP ROBERT CAMPEAU AND ROSS JOHNSON HAVE GENERALLY BEEN GREETED WITH CHEERING BY THE PRESS MR STEWART DOES NOT THINK THE FALL OF THE REICHMANNS JUSTIFIES AN OUTBURST OF SCHADENFREUDE THIS IS THE STORY OF HOW DECENT MEN REMARKABLE BUILDERS OUTSTANDING CITIZENS SCREWED UP HE WRITES ALTHOUGH PAUL AND ALBERT REICHMANN AND TO A LESSER EXTENT RALPH REICHMANN ACHIEVED THEIR GREATEST SUCCESS IN NORTH AMERICA BY BUILDING SUCH COMPLEXES AS THE WORLD FINANCIAL CENTER IN NEW YORK THEIR EMPIRE WAS FOUNDED IN EUROPE THE SAGA THAT WOULD CULMINATE IN THE DEBACLE OF CANARY WHARF IN THE EAST END OF LONDON BEGAN IN THE WEST END OF HUNGARY WHERE THE THREE WERE BORN TO SAMUEL REICHMANN A JEWISH EGG MERCHANT WHO FLED TO FRANCE THEN MOROCCO AS THE NAZIS SEIZED CONTROL OF EUROPE IN 1954 SAMUEL DISPATCHED HIS OLDEST SON EDWARD TO NORTH AMERICA TELLING HIM TO WRITE BACK WHEN HE'D FOUND THE LAND OF MILK AND HONEY EDWARD ARRIVED IN NEW YORK IN THE MIDDLE OF THE XENOPHOBIC MCCARTHY ERA AND QUICKLY HEADED NORTH FOR CANADA SETTING UP AN IMPORTEXPORT BUSINESS IN TORONTO HE SOON SENT FOR THE REST OF THE FAMILY EDWARD THEN PASSES OUT OF THE STORY AS THE THREE YOUNGER BROTHERS DRIFT INTO THE CONSTRUCTION BUSINESS DEVELOPING A REPUTATION FOR ERECTING ATTRACTIVE WELLMAINTAINED OFFICE BUILDINGS IN A TIMELY AND ECONOMICAL FASHION YET BECAUSE OF THEIR ORTHODOX RELIGIOUS PRACTICES THEIR DISDAIN FOR THE MEDIA THEIR REFUSAL TO TAKE THEIR COMPANIES PUBLIC AND THEIR GENERAL LACK OF CHUMMINESS THE REICHMANNS REMAINED A SOMEWHAT SHADOWY FORCE OPERATING OUTSIDE THE CANADIAN FINANCIAL ESTABLISHMENT FOR ROUGHLY A QUARTERCENTURY OF COURSE THERE WAS GOLD IN THEM THERE SHADOWS BUYING UP REAL ESTATE AT BARGAINBASEMENT PRICES DURING GOTHAM'S DARK RECESSION IN THE MID1970S THE REICHMANNS BUILT A WAR CHEST THAT ENABLED THEM TO ERECT THE AWEINSPIRING YET APPEALING WORLD FINANCIAL CENTER ALONG WITH MANY OTHER COMPLEXES IN NORTH AMERICA THEY IMBUED THESE EDIFICES WITH A PRESTIGE AND ALLURE FAR BEYOND THEIR ARCHITECTURAL MERITS BY LURING HIGHPROFILE TENANTS SUCH AS AMERICAN EXPRESS AND MERRILL LYNCH SWEETENING THE POT BY BUYING THE EXISTING HEADQUARTERS OF THEIR NEW TENANTS THEY ALSO SET OUT ON A MAJOR ACQUISITION SPREE OUTSIDE THE REAL ESTATE BUSINESS PURCHASING SUCH REDOUBTABLE ENTERPRISES AS GULF CANADA IN THEIR HEYDAY THE REICHMANNS HAD ALL THE RIGHT MOVES HIRING AWAY CIVIL SERVANTS WHO HAD PREVIOUSLY BEEN THEIR FOES DONATING VAST AMOUNTS OF MONEY TO WORTHY CAUSES AND IN THE CASE OF CANARY WHARF DEFUSING MUCH OF THE LOCAL OPPOSITION BY HIRING PEOPLE WHO LIVED IN THE NEIGHBORHOOD TO ERECT THIS COCKNEY VERSION OF THE TOWER OF BABEL WHAT BROUGHT THEM DOWN MR STEWART BLAMES AMBITION OTHERS WILL CITE GREED STILL OTHERS WILL MENTION THE DREAD WORD STUPIDITY CANARY WHARF NEVER HAD ANY HOPE OF SUCCEEDING UNLESS THE BRITISH GOVERNMENT AGREED TO SHOULDER MOST OF THE COST OF BUILDING A SUBWAY LINK CONNECTING IT WITH THE CITY BUT THAT HOPE VANISHED ONCE THE REICHMANNS' CHAMPION MARGARET THATCHER WAS DETHRONED BY TREASONOUS SUBORDINATES AND EVEN THOUGH THE REICHMANNS WERE GIVEN TO FREE MARKET BLATHER ABOUT THE RUGGED INDIVIDUALISM OF THE ENTREPRENEUR THEY DEPENDED UPON HUGE GOVERNMENT SUBSIDIES AND LIKE THE DEBTBLOATED GOVERNMENTS THEY CRITICIZED WERE BROUGHT LOW PURELY AND SIMPLY BECAUSE THEY BORROWED TOO MUCH MONEY DURING A RECESSION ULTIMATELY LIKE EVERYONE ELSE THE REICHMANNS BLAMED THE MEDIA FOR SCARING BANKS INTO THINKING THEY COULD NOT PAY THEIR BILLS WHO STEALS MY PURSE STEALS TRASH WRITES MR STEWART BUT HE THAT FILCHES FROM ME MY GOOD NAME PLAYS HELL WITH MY BOND RATINGS AND MAY MAKE IT IMPOSSIBLE FOR ME TO BORROW AT ALL THEIR GOOD NAME WAS FILCHED 9401200089 940120 NEW YORK'S BORNAGAIN BIG SPENDER BY HERBERT LONDON AS I SAT IN THE NEW YORK STATE ASSEMBLY LISTENING TO GOV MARIO CUOMO'S STATE OF THE STATE ADDRESS TWO WEEKS AGO I HAD THE IMPRESSION THE GOVERNOR WAS AUDITIONING FOR A PART IN YET ANOTHER REMAKE OF INVASION OF THE BODY SNATCHERS FOR ROUGHLY ONE HOUR IT SEEMED THAT RONALD REAGAN INHABITED THE BODY OF MARIO CUOMO NONETHELESS THIS WEEK MR CUOMO PROPOSED A 625 BILLION BUDGET FOR 1994 THE LARGEST IN THE STATE'S HISTORY AND PROBABLY THE LARGEST IN THE US IN HIS ADDRESS THE NEW IMPROVED CUOMO SAID THE WAY TO CREATE JOBS IS TO LOWER CORPORATE TAXES AND HAVE A MORE HOSPITABLE ENVIRONMENT FOR BUSINESS THIS CLAIM OBVIOUSLY WAS MADE BY THE CUOMO FACSIMILE SINCE THE REAL MARIO CUOMO SPOKE AT THE DEMOCRATIC CONVENTION IN 1992 THAT MAN ARGUED THAT SUPPLYSIDE ECONOMICS LOWERING TAXES TO PROMOTE INVESTMENT WAS VOODOO ECONOMICS FOR 12 YEARS NEW YORK HAS BEEN IN A METAPHORICAL FIRESTORM NEW YORK HAS 72 OF THE NATION'S POPULATION AND 15 OF THE NATION'S ACCUMULATED DEBT IT HAS 185 OF THE MEDICAID EXPENDITURES WITH ONLY 8 OF THE MEDICAID RECIPIENTS IT HAS 34 OF THE NATION'S WELFARE RECIPIENTS 11 MILLION IN NEW YORK CITY ALONE FORTY PERCENT OF ALL THE JOBS LOST IN THIS COUNTRY SINCE 1989 WERE LOST HERE 572000 JOBS WERE RELOCATED OR DISAPPEARED GOV CUOMO RECENTLY HAS PRESENTED HIMSELF AS A LOWTAX GOVERNOR HE AND HIS STAFF HAVE NOTED THAT NEW YORK'S INCOMETAX RATE IS AT ITS LOWEST LEVEL IN 30 YEARS THAT NEW YORK RANKS 24TH AMONG STATES IN THE PERCENTAGE OF INCOME TAX PAID IN STATE TAXES THAT GOVERNMENT JOBS HAVE BEEN REDUCED BY 13 SINCE NOVEMBER 1990 AND THAT NEW YORK HELD THE LINE ON TAXES THROUGH THE PAST FOUR BUDGET YEARS THESE ARGUMENTS REPRESENT THE GOVERNOR'S MANTRA ABOUT HIS PERFORMANCE AND THE BASIS ON WHICH HIS NEXT CAMPAIGN WILL BE ORGANIZED BUT ARE THESE ARGUMENTS ACCURATE SINCE MR CUOMO BECAME GOVERNOR IN 1983 THE TAX RATE HAS INDEED GONE DOWN AS HE REPORTS BUT ACTUAL TAXES FOR EACH INDIVIDUAL HAVE GONE UP DRAMATICALLY IN PART THIS IS DUE TO STATE MANDATES THAT FORCE LOCALITIES TO BEAR THE FINANCIAL BRUNT OF GOVERNMENT REQUIREMENTS IN RESPONSE TO THESE STATE DEMANDS LOCALITIES HAVE TWO OPTIONS RAISE PROPERTY TAXES OR SALES TAXES THIS IS PRECISELY WHAT HAS BEEN DONE IN THE PAST 11 YEARS NEW YORK HAS THE HIGHEST COMBINED STATE AND LOCAL TAXES PER CAPITA IN THE NATION 3267 A RATE THAT IS 62 HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO THIS MONTH'S MONEY MAGAZINE IF ONE CONSIDERS A TWOINCOME FAMILY OF FOUR WITH INCOME OF ROUGHLY 80000 THE TAX BILL IN NEW YORK STATE LEAVING OUT FEDERAL TAXES IS 11020 AS OPPOSED TO A 1694 TAB IN ALASKA NEW YORK'S 7875 INCOME TAX IS 54 ABOVE THE AVERAGE OF CONTIGUOUS STATES THE STATE'S 1035 CORPORATE TAX IS THE SECOND HIGHEST IN THE NATION AFTER CONNECTICUT THE DIFFERENCE BY THE WAY IS NEGLIGIBLE AND 53 ABOVE THE NATIONAL AVERAGE THE STATE DISCOURAGES BUSINESS ACTIVITY WITH ITS HIGH CORPORATE TAXES IT ALSO DOES SO WITH AN EFFECTIVE CAPITALGAINS RATE OF 365 IN NEW YORK CITY CAPITAL GAINS ARE TAXED AT AN ASTONISHING 3975 RATE THE HIGHEST IN THE NATION THOSE NUMBERS SUGGEST WHY PRIVATE CAPITAL IS BEING CROWDED OUT OF EXISTENCE BY THE EXPANSIVE PUBLIC SECTOR AND WHY MANY PEOPLE ARE LEAVING THE STATE THESE STATISTICS ALSO INDICATE WHY NEW YORK LAGS SIGNIFICANTLY BEHIND THE REST OF THE NATION IN JOB PRODUCTION FROM 1983 TO 1993 THE PRIVATESECTOR JOB FORCE INCREASED BY 4 IN NEW YORK AND CLOSE TO 25 NATIONWIDE IN THE 1980S NEW YORK RANKED 47 OUT OF THE 50 STATES IN JOB PRODUCTION HAD NEW YORK BEEN AT THE MEAN IT MIGHT WELL HAVE PAID ITS BILLS DESPITE THE GOVERNOR'S INSATIABLE APPETITE FOR SPENDING OF COURSE THAT WAS MR CUOMO BEFORE HIS RECENT TRANSFORMATION MR CUOMO HAS NOTED ACCURATELY I MIGHT ADD THAT GOVERNMENT JOBS HAVE BEEN REDUCED SINCE NOVEMBER 1990 BUT HE NEGLECTS TO POINT OUT TO UNWARY AUDIENCES THAT HE HAS BEEN GOVERNOR SINCE 1983 SINCE 1990 THE STATE WORK FORCE HAS BEEN REDUCED BY 17414 JOBS MOSTLY THROUGH ATTRITION EVEN AFTER THIS REDUCTION IS CALCULATED THE STATE GOVERNMENT HAS HAD AN INCREASE OF 15256 JOBS OR A 743 INCREASE SINCE 1983 NEW YORK HAS 6219 STATE AND LOCAL EMPLOYEES PER 10000 IN THE POPULATION THE HIGHEST AMONG INDUSTRIAL STATES AND 19 ABOVE THE NATIONAL AVERAGE LAST IS THE CLAIM THAT NEW YORK HELD THE LINE ON TAXES EVEN IF ONE DOESN'T VIEW MANDATES AS AN ENFORCED LOCAL TAX INCREASE THERE IS STILL THE MATTER OF STATE TAXES AND FEES IN THE PAST FOUR YEARS COUNTING THE SUSPENSION OF THE LAST YEAR OF THE PROMISED TAX CUT TAXES HAVE GONE UP MORE THAN 1 BILLION EACH YEAR OF COURSE MR CUOMO CLAIMS THAT FEES AREN'T TAXES IF HE ACCEPTS THAT PREMISE THEN HE CAN DISCUSS HOLDING THE LINE ON TAXES WITH A STRAIGHT FACE DESPITE TWO TAX CUTS DURING HIS TENURE AND A REDUCTION IN THE TAX RATE THERE STILL HAS BEEN AN INCREASE OF 137 IN TAXES FOR EVERY TAX DOLLAR CUT ON BALANCE IT'S UNDERSTANDABLE THAT MR CUOMO HAS BEEN TRANSFORMED INTO A BORNAGAIN TAX CUTTER HE ORCHESTRATED THE FAILURE OF NEW YORK AND NOW IS GROPING FOR A REMEDY MR LONDON A REPUBLICAN RAN FOR GOVERNOR OF NEW YORK IN 1990 AND IS A CANDIDATE FOR 1994 HE IS A PROFESSOR OF HUMANITIES AT NEW YORK UNIVERSITY 9401200088 940120 MARKETING & MEDIA ADVERTISING MORE AND MORE BILLBOARDS ARISE POINTING TO INFORMATION HIGHWAY BY KEVIN GOLDMAN THE FOUNDATION HASN'T EVEN BEEN LAID FOR THE MUCH BALLYHOOED INFORMATION SUPERHIGHWAY BUT ALREADY GIANT COMMUNICATIONS COMPANIES ARE PEPPERING THEIR ADVERTISING WITH PROMISES OF NEWFANGLED TECHNOLOGY COMMERCIALS FOR COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH MCI COMMUNICATIONS AND NYNEX ARE FLOODED WITH THE OVERUSED TERM INFORMATION SUPERHIGHWAY MCI TROTS OUT A BEGUILING 11YEAROLD TO TEASE THE AUDIENCE WITH DAZZLING TECHNOLOGICAL POSSIBILITIES WHILE NYNEX HAS HIRED FORMER NETWORK ANCHOR AND CORRESPONDENT MARY ALICE WILLIAMS TO GUIDE ITS CUSTOMERS AND KEEP THEM POSTED ON DEVELOPMENTS NEXT WEEK BELL ATLANTIC WILL WEIGH IN WITH A NEW CAMPAIGN THAT'S MORE GROUNDED IN REALITY IN NEW ADS SCHEDULED TO BEGIN AIRING MONDAY BELL ATLANTIC WILL DISCUSS WHAT SERVICES IT CAN PROVIDE TO ITS 14 MILLION CUSTOMERS IN SEVEN STATES NOW IT IS THE FIRST CORPORATE AD CAMPAIGN FROM BELL ATLANTIC IN FOUR YEARS IN ONE SPOT A BELL ATLANTIC EMPLOYEE SAYS WE'RE NETWORKING BUSINESS COMPUTERS TO HOME COMPUTERS SO PEOPLE CAN TELECOMMUTE ANOTHER SAYS WE'VE ALREADY SET UP DISTANCE TEAMING NETWORKS WHERE ONE TEACHER CAN TEACH STUDENTS IN DIFFERENT LOCATIONS AT THE SAME TIME IT'S AN AMAZING THING ONE OF THE INTENTS OF THIS CAMPAIGN IS NOT TO DEAL WITH APPLICATIONS THAT AREN'T REAL AND AREN'T HAPPENING RIGHT NOW SAYS RICH O'LEARY SENIOR VICE PRESIDENT AT OMNICOM GROUP'S J WALTER THOMPSON BELL ATLANTIC'S AD AGENCY WE'RE NOT SELLING THE FUTURE THAT'S NOT RIGHT WE WANT TO COMMUNICATE THE TYPE OF CHANGE THE COMPANY IS CURRENTLY GOING THROUGH THAT IS WHY THE ADS DON'T MENTION OR HINT AT THE PLANNED ALLIANCE WITH TELECOMMUNICATIONS ANNOUNCED IN OCTOBER IN WHICH THE COMPANIES SAID THEY WOULD SPEND 15 BILLION IN THE NEXT FIVE YEARS TOWARD CONSTRUCTION OF THE INFORMATION SUPERHIGHWAY THAT WOULD BE PREMATURE SAYS MR O'LEARY THE COMMERCIALS ARE PART OF AN AGGRESSIVE CAMPAIGN WITH SEVERAL OBJECTIVES INCLUDING INFORMING CUSTOMERS THAT BELL ATLANTIC'S SEVEN COMPANIES WILL ALL BE KNOWN AS BELL ATLANTIC AS OF MONDAY IN ONE COMMERCIAL AN EMPLOYEE PAINTING A NEW SIGN SAYS I HEARD WE WERE CHANGING OUR NAME BUT I DIDN'T REALIZE I'D BE THE ONE TO ACTUALLY DO IT WE CAN BREAK THROUGH THE CLUTTER WITH A SINGLE BRAND NAME SAYS LISA SHERMAN ASSISTANT VICE PRESIDENT OF ADVERTISING AND PROMOTION AT BELL ATLANTIC A SINGLE BRAND NAME MAKES OUR CUSTOMERS UNDERSTAND THE VISION AND RANGE OF OUR SERVICES THE BELL ATLANTIC SPOTS ARE IN SHARP CONTRAST TO THE MUCH TALKEDABOUT ADS FROM RIVAL MCI WHICH ARE AT BEST ARRESTING AND BEAUTIFULLY FILMED AT WORST THEY ARE CONFUSING THEN AGAIN THE MCI COMMERCIALS AREN'T SELLING SPECIFIC PRODUCTS BUT RATHER THE FUTURE THE FOUR SPOTS FROM MESSNER VETERE BERGER MCNAMEE SCHMETTERER FEATURE ANNA PAQUIN THE 11YEAROLD NEW ZEALAND ACTRESS WHO COSTARRED IN THE FILM THE PIANO WEARING A FLOPPY HAT AND LAURA ASHLEYTYPE CLOTHES MS PAQUIN SAYS THERE WILL BE A ROAD IT WILL NOT CONNECT TWO POINTS IT WILL CONNECT ALL POINTS ITS SPEED LIMIT WILL BE THE SPEED OF LIGHT IT WILL NOT GO FROM HERE TO THERE THERE WILL BE NO THERE THERE WE WILL ALL ONLY BE HERE THEN A SLIDE POPS UP AGAINST A BLACK BACKGROUND WITH THE LOGO NETWORKMCI THIS IS AN INTRODUCTION TO THE STRATEGIC VISION OF MCI SAYS ANGELA DUNLAP PRESIDENT OF MCI CONSUMER MARKETS WE'RE TALKING ABOUT SHAPING THE FUTURE AND NOT HAVING THE FUTURE SHAPE US MS DUNLAP SAYS THE ADS DON'T INCLUDE AN 800TELEPHONE NUMBER WHICH IS A DEPARTURE FROM OUR OTHER ADVERTISING AS THE CAMPAIGN UNFOLDS YOU WILL SEE HOW YOU WILL BE ABLE TO TAKE ADVANTAGE OF THE SERVICES AND VISION FROM MCI WE'RE BRANDING THE VISION TO BE SURE THE ADS BREAK THROUGH THE CLUTTER IT IS UNUSUAL FOR A YOUNG GIRL TO ADDRESS THE AUDIENCE ON A COMPLEX SUBJECT MOREOVER THE NEW ZEALAND ACCENT SETS HER APART AS DO THE SETTINGS WHICH INCLUDE A SEASHORE AND A UTAH SALT FLAT MS DUNLAP SAYS THE COMMERCIALS RECEIVED AN OVERWHELMING RESPONSE FROM CONSUMERS AND BUSINESS CUSTOMERS VIRTUALLY ALL FAVORABLE SHE LIKENS THE SPOTS TO THE INFORMATION SUPERHIGHWAY ITSELF THE MORE YOU SEE IT THE MORE YOU UNDERSTAND IT SOME MARKETING EXPERTS DON'T LIKE WHAT THEY SEE HOWEVER JOHN LISTER CHIEF EXECUTIVE OFFICER OF LISTER BULTER A NEW YORK BRAND IDENTITY CONSULTING FIRM SAYS THAT WHEN HE FIRST SAW THE MCI COMMERCIALS HE THOUGHT THE SERIES WAS AN ABERRATION BECAUSE MCI ADS ARE SO FOCUSED THE CONNECTION TO THE BRAND IN THESE COMMERCIALS IS HIGHLY AMBIGUOUS THE EXECUTION IS PUZZLING EVEN THOUGH IT BREAKS THROUGH THE CLUTTER MR LISTER SAYS THE ADS MISS THE MARK BECAUSE IT IS SOMEWHAT DIFFICULT TO MAKE A MEANINGFUL CONNECTION BETWEEN WHAT IS SAID AND WHAT THE BRAND IS HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON NJ SAYS THAT ALTHOUGH THE MCI ADS ARE DIFFERENT PEOPLE DON'T REMEMBER THEM PEOPLE IN THE AD BUSINESS PAY A LOT OF ATTENTION TO ADS LIKE THESE BUT THE POOR CONSUMER ISN'T SURE WHAT THEY'RE FOR MR ROSS HASN'T CONDUCTED RESEARCH ON THE MCI ADS NYNEX IS USING ADVERTISING TO INFORM ITS CUSTOMERS IN SIX STATES AS WELL AS TWO TOWNS IN CONNECTICUT THAT IT IS CHANGING ITS NAME FROM NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE TO NYNEX OTHER ADS FEATURING MS WILLIAMS AT THE WHEEL OF A FRESHLY PAINTED WHITE NYNEX VAN SHOW THE FORMER REPORTER EXPOUNDING ON WHAT IS YET TO COME SOMETIMES IT IS DONE HUMOROUSLY ONE AD HAS MS WILLIAMS SPEAKING OVER FOOTAGE SHOWING A CHAOTIC HOUSE THE TV IS ON THE KIDS ARE PLAYING A COMPUTER GAME THE PHONE IS RINGING AND SOMEONE IS BEEPING THERE'S LIKELY ENOUGH NOISE IN YOUR HOUSEHOLD RIGHT NOW TO MAKE THE PROSPECT OF AN INFORMATION SUPERHIGHWAY PUT YOU ON OVERLOAD THE AD'S OBJECTIVE IS TO INFORM CONSUMERS THAT NYNEX WILL MAKE THEIR LIVES SIMPLER BELL ATLANTIC'S ADS GO FARTHER SHOWING HOW THE IMPROVED TECHNOLOGY WILL BENEFIT CUSTOMERS WE'RE BEING ATTACKED ON ALL FRONTS SAYS MS SHERMAN FROM BELL ATLANTIC WE NEED TO GET ACROSS THAT WE'RE THE LEADER IN TERMS OF ADVANCING THE INFORMATION SUPERHIGHWAY DHL CORP THE EXPRESS AIRFREIGHT COMPANY FIRED THE SAN FRANCISCO OFFICE OF KETCHUM ADVERTISING AND MOVED ITS ACCOUNT TO OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN AFTER A QUIET REVIEW OF AT LEAST THREE OTHER AGENCIES INDUSTRY EXECUTIVES SAID OFFICIALS AT DHL BASED IN REDWOOD CITY CALIF DIDN'T RETURN CALLS SEEKING COMMENT DHL SPENT 13 MILLION ON ADVERTISING IN 1992 ACCORDING TO COMPETITIVE MEDIA REPORTING AND 6 MILLION IN THE FIRST 10 MONTHS OF 1993 OTHER BAY AREA AGENCIES BELIEVED TO HAVE PITCHED THE ACCOUNT INCLUDE MANDELBAUM MOONEY ASHLEY HOFFMAN/LEWIS AND KATSIN/LOEB J WALTER THOMPSON AN ADVERTISING AGENCY BASED IN NEW YORK IS OWNED BY WPP GROUP YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID IT IS OWNED BY OMNICOM GROUP 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 9401200086 940120 LEISURE & ARTS FILM A WIDOW TRIES TO ESCAPE THE PAST BY JULIE SALAMON A YOUNG WOMAN NAMED JULIE WHO HAS RECENTLY LOST HER HUSBAND AND CHILD IN A CAR ACCIDENT RETURNS TO THE FAMILY MANSION SHE FINDS THE FAMILY'S COOK WAILING IN THE KITCHEN WHY ARE YOU CRYING THE WIDOW WHO IS VERY BEAUTIFUL ASKS THE OLD WOMAN BECAUSE YOU'RE NOT REPLIES THE COOK JULIE'S DECISION NOT TO CRY IS THE SUBJECT OF BLUE A BAFFLING BEAUTIFUL FRENCH AND POLISH COLLABORATION DIRECTED BY KRZYSZTOF KIESLOWSKI UNABLE TO KILL HERSELF AFTER THE DEATH OF HER FAMILY JULIE DECIDES TO LIVE WITHOUT MEMORY SHE SETTLES HER FINANCIAL AFFAIRS PUTS THE HOUSE UP FOR SALE AND MOVES TO AN APARTMENT IN PARIS WHERE SHE PLANS TO LIVE IN ANONYMITY AS PART OF HER BREAK WITH THE PAST SHE MAKES LOVE WITH THE MAN WHO HAS ALWAYS ADORED HER AT A DISTANCE HER DEAD HUSBAND'S COLLABORATOR SHE TELLS HIM SHE HAS DONE THIS SO HE WILL NO LONGER FANTASIZE ABOUT HER SHE WANTS NOTHING ABOUT HER FORMER LIFE TO CONTINUE BUT THIS IS IMPOSSIBLE HER HUSBAND WAS A FAMOUS COMPOSER AND SHE WAS HIS UNOFFICIAL ADVISER SHE CAN'T BLOCK OUT THE MUSIC THEY CREATED NOT ONLY IS SHE UNABLE TO ELIMINATE THE PAST SHE REMEMBERS SHE LEARNS DISTURBING NEW THINGS ABOUT IT ZBIGNIEW PREISNER COMPOSED THE ORIGINAL MUSIC FOR THE FILM STRONG HAUNTING CHORDS THAT GIVE IT A FEELING OF DEPTH THE MUSIC AND THE FACE OF JULIETTE BINOCHE JULIE BEAUTIFULLY PHOTOGRAPHED BY SLAWOMIR IDZIAK HOLD THIS ELLIPTICAL FILM TOGETHER AT TIMES THE MOVIE SEEMS JUST SLIGHTLY MORE DEVELOPED THAN SOPHISTICATED ADVERTISING FULL OF SEDUCTIVE IMAGERY SIGNIFYING A LOT BUT REVEALING LITTLE YET THERE ARE MOMENTS OF SAD HUMOR OF GENUINE HUMANITY WHEN FOR EXAMPLE JULIE VISITS HER MOTHER IN A NURSING HOME THE MOTHER NO LONGER RECOGNIZES HER DAUGHTER DEMENTIA HAS ALLOWED THE MOTHER TO DO WHAT JULIE IS TRYING TO DO BUT CAN'T TO CUT HERSELF OFF FROM HER MEMORIES JULIE STARES AT HER MOTHER STARING AT A TELEVISION SET WATCHING A REPORT ON BUNGEE JUMPERS AS THE BUNGEE JUMPERS BELT THEMSELVES UP AND FLING THEMSELVES OVER THE EDGE OF A CLIFF THE MOTHER SAYS I CAN SEE THE WHOLE WORLD AT THE TIME OF THIS WRITING I AM WEARING A NAVY BLUE SWEATER A BLACK TURTLENECK SLACKS WITH GREEN AND PURPLISH CHECKS AND BROWN BOOTS WHEN I CHOSE THESE CLOTHES IN THE DIM LIGHT OF MY BEDROOM BEFORE PUTTING IN MY CONTACT LENSES THEY SEEMED TO MATCH BUT IN THE COOL FLUORESCENT LIGHT OF THE LADIES ROOM HERE AT THE JOURNAL I COULD SEE I MIGHT HAVE MADE A MISTAKE I OFFER THIS INSIGHT INTO MY SARTORIAL JUDGMENT OR LACK THEREOF AS A PARTIAL EXPLANATION FOR WHAT MY MAILBOX INDICATES IS THE MOST SERIOUS ERROR I'VE EVER MADE AS A FILM CRITIC ON DEC 23 IN THIS NEWSPAPER I DESCRIBED A SCENE IN THE PELICAN BRIEF IN WHICH JULIA ROBERTS PLAYING A BEAUTIFUL LAW STUDENT AND DENZEL WASHINGTON PLAYING A REPORTER ARE RUNNING THROUGH A PARKING GARAGE TRYING TO ELUDE THE PROFESSIONAL KILLERS CHASING THEM THEY RUN RUN RUN I WROTE THEN JUST WHEN IT SEEMS THEY ARE TRAPPED THEY LEAP FROM ONE LEVEL OF THE CAR PARK TO THE LEVEL BELOW LAND ON THE HOOD OF A CAR HOP OFF AND CONTINUE RUNNING WITHOUT MISSING A BEAT OR EVEN BREAKING A HEEL I CAN'T THINK OF A FUNNIER SCENE IN ANY OF THE CURRENT MOVIE RELEASES IF ONLY I'D LET IT GO AT THAT BUT SOME DEMON COMPELLED ME TO SAY MORE I RAN THE SCENE BACK THROUGH MY MIND THERE THEY WERE THE JOURNALIST AND THE LAW STUDENT RUNNING RUNNING RUNNING ON MY INTERNAL MOVIE SCREEN MS ROBERTS WAS WEARING A SLIM SKIRT AND HIGH HEELS I ADDED THIS DETAIL TO THE REVIEW ON EVERY OTHER MOVIE SCREEN HOWEVER MS ROBERTS WORE THE SLIM SKIRT AND HIGH HEELS ELSEWHERE IN THE MOVIE IN THE PARKING GARAGE SHE WAS WEARING A LOOSE SKIRT AND FLATS THIS ERROR WAS POINTED OUT BY MANY MANY READERS YOU CAN REST ASSURED THAT I WILL NEVER READ ANOTHER REVIEW OF YOURS WROTE AD OF IRVINE CALIF I DON'T WANT TO BE MISLED WITH ERRONEOUS FACTS AGAIN I ALWAYS HAD AN IMAGE OF THE WALL STREET JOURNAL AS BEING A PARAGON OF JOURNALISTIC QUALITY AND INTEGRITY WROTE CC OF LAKEWOOD OHIO BUT UNFORTUNATELY JULIE SALAMON'S REVIEW OF THE PELICAN BRIEF' PROVED MY HIGH REGARD OF YOUR NEWSPAPER WAS UNDESERVED AND SO ON CLEARLY MOVIES AWAKE GREAT UNEXPECTED PASSIONS THE HANDSOME JOHN BROADWOOD & SON INSTRUMENT THAT PLAYS THE TITLE ROLE IN THE PIANO' IS SO PUMMELED AND ABUSED IN THE COURSE OF THE MOVIE THAT AFTER AWHILE I WANTED TO SHOUT STOP BATTERING THAT PIANO IT'S INNOCENT' WRITES CRAIG SELIGMAN IN A RECENT ISSUE OF PIANO & KEYBOARD SO I GUESS I SHOULDN'T HAVE BEEN SURPRISED BY THE ARDENT WATCHDOGS WHO RALLY AROUND EVEN A REALLY SILLY MOVIE LIKE THE PELICAN BRIEF MY APOLOGIES TO ALL I AM IMPOSING A MANDATORY SENTENCE ON MYSELF SIX MONTHS OF REMEDIAL READING OF FASHION MAGAZINES VIDEO TIP I'LL ALSO WATCH FUNNY FACE A FEW MORE TIMES THOUGH THAT'S PLEASURE NOT PUNISHMENT IN THIS 1957 MUSICAL FRED ASTAIRE PLAYS A FASHION PHOTOGRAPHER WHO DISCOVERS A BOOKSHOP CLERK AUDREY HEPBURN AND TURNS HER INTO A MODEL FOR A VOGUELIKE MAGAZINE THE GEORGE AND IRA GERSHWIN SCORE IS GREAT AND SO ARE THE CLOTHES BY GIVENCHY 9401200085 940120 PFIZER REPORTS WEAKER PROFIT THAN EXPECTED GAIN OF JUST 36 SHOWS HEALTHCARE UNPHEAVAL HURTS ENTIRE INDUSTRY BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PFIZER INC REPORTED SURPRISINGLY WEAK EARNINGS AND SALES GROWTH FOR THE FOURTH QUARTER AN INDICATION THAT EVEN THE STRONGEST OF DRUG COMPANIES IS BEING OVERPOWERED BY UPHEAVAL IN THE HEALTHCARE INDUSTRY NET INCOME GREW AN ANEMIC 36 TO 2889 MILLION OR 90 CENTS A SHARE FROM 2788 MILLION OR 83 CENTS A SHARE A YEAR EARLIER THE 1992 PERIOD INCLUDED A 153 MILLION NONRECURRING PRETAX GAIN THE EARNINGS GROWTH WAS WELL BELOW ANALYSTS EXPECTATIONS SALES ROSE JUST 22 TO 199 BILLION FROM 195 BILLION PFIZER'S STOCK DROPPED 5 OR 74 TO 62875 MOREOVER THE DISAPPOINTING RESULTS SHOOK THE ENTIRE DRUG GROUP PULLING DOWN SHARE PRICES OF OTHER DRUG COMPANIES ESPECIALLY HARD HIT WAS SCHERINGPLOUGH CORP WHICH WAS ALSO VIEWED AS ONE OF THE COMPANIES BEST POSITIONED TO WEATHER THE INDUSTRY'S TURMOIL ITS STOCK FELL 1875 OR 28 TO 64375 SINCE PFIZER WAS THE FIRST MAJOR DRUG COMPANY TO REPORT ITS RESULTS INVESTORS BEGAN TO QUESTION WHETHER OTHER COMPANIES WOULD GENERATE NEGATIVE SURPRISES SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER NOTING HE DIDN'T BELIEVE THE EARNINGS DISAPPOINTMENT PORTENDED SURPRISES AT OTHER PHARMACEUTICALS COMPANIES UNTIL YESTERDAY ANALYSTS HAD VIEWED PFIZER AS PROTECTED FROM THE MARKET PRESSURE HITTING OTHER DRUG COMPANIES BECAUSE ITS BEVY OF NEW PRODUCTS WAS EXPECTED TO SUSTAIN THE COMPANY'S STRONG REVENUE GROWTH THE THEORY SEEMED TO HOLD UP IN THE PAST YEAR AS PFIZER CONTINUED TO REPORT STRONG EARNINGS GAINS WHILE PROFIT GROWTH OF OTHER DRUG COMPANIES SHARPLY SLOWED HEMANT SHAH AN INDEPENDENT ANALYST SAID THIS IS A JOLT BECAUSE IT SHOWS THE WORST ISN'T BEHIND US THE WORST IS JUST BEGINNING PETER G TOMBROS PFIZER VICE PRESIDENT OF INVESTOR RELATIONS PLAYED DOWN THE RESULTS AS AN ABERRATION CAUSED BY A NEGATIVE CURRENCY IMPACT AND WHOLESALER BUYING PATTERNS WE DON'T THINK IT'S INDICATIVE OF WHAT TO EXPECT FOR THE FUTURE HE SAID SENIOR EXECUTIVES WEREN'T AVAILABLE TO COMMENT OTHER ANALYSTS SAID THEY WERE INCLINED TO BELIEVE THE COMPANY'S ARGUMENT THAT THE QUARTER'S RESULTS DON'T REFLECT THE START OF A DOWNWARD TREND FOR PFIZER BUT BLAMED THE COMPANY FOR FAILING TO PROVIDE BETTER GUIDANCE TO ANALYSTS THEY NOTED THAT PERSHARE EARNINGS FROM ONGOING OPERATIONS GREW A RESPECTABLE 15 ALTHOUGH GROWTH WAS BELOW ANALYSTS' CONSENSUS FORECAST OF 22 MR TOMBROS SAID ANALYSTS DIDN'T APPEAR TO HAVE ANTICIPATED THE CURRENCY EFFECT WHICH REDUCED SALES THREE PERCENTAGE POINTS SALES WERE ALSO HURT BY CHANGES IN A CONSUMER HEALTHCARE TRADE PROMOTION AND LESS BUYING BY WHOLESALERS THINGS THAT ALSO APPARENTLY ESCAPED ANALYSTS' ATTENTION SOME ANALYSTS SAID THEY WERE SURPRISED BY SALES DECLINES IN THE HOSPITAL ANIMAL HEALTH CONSUMER HEALTH CARE AND FOOD SCIENCE BUSINESSES NEW PRODUCT SALES ALSO WERE SOMEHAT BELOW WHAT ANALYSTS EXPECTED BUT THE COMPANY COUNTERED THAT FOUR OF ITS NEWER PHARMACEUTICAL PRODUCTS GENERATED AN AGGREGATE SALES INCREASE OF 71 DRIVING TOTAL PHARMACEUTICAL SALES UP 6 ACCOUNTING FOR MUCH OF THE SHORTFALL IN ANALYST EXPECTATIONS WAS AN 11 DECLINE IN SALES OF THE COMPANY'S BIGGEST PRODUCT PROCARDIA XL A HEART DRUG A PIVOTAL QUESTION SURROUNDING PFIZER'S OUTLOOK IS WHETHER PROCARDIA XL'S DECLINE WAS AN ABERRATION OR MORE PROFOUND CHANGE SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST IN NEW YORK HE NOTED THAT WHILE SALES WERE DOWN PRESCRIPTION TRENDS WERE FLAT BOLSTERING THE COMPANY'S ARGUMENT THAT WHOLESALER BUYING PATTERNS WERE BEHIND THE DECLINE MR NORDMANN OFFERED ANOTHER EXPLANATION FOR PFIZER'S DISAPPOINTING RESULTS I BELIEVE THAT PFIZER INTENTIONALLY MANAGED DOWN EARNINGS BECAUSE THEY WANT TO BE POLITICALLY CORRECT IN FRONT OF THE INITIATION OF CONGRESSIONAL DEBATE ON THE CLINTON HEALTHCARE PACKAGE HE SAID NOTING THAT WILLIAM C STEERE PFIZER CHAIRMAN AND CHIEF EXECUTIVE IS CHAIRMAN OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A PFIZER SPOKESMAN DENIED MR NORDMANN'S THEORY SAYING PFIZER DOESN'T MANAGE ITS EARNINGS PFIZER MANAGES ITS BUSINESS MR SHAH BELIEVES THE PROBLEMS THAT AFFECTED PFIZER IN THE LATEST QUARTER WILL CONTINUE THE PHARMACEUTICAL MARKET IS DETERIORATING ACROSS THE BOARD MR SHAH ADDED THERE'S VERY LITTLE UNIT SALES GROWTH OF PRESCRIPTION DRUGS HE SAID AND DRUG COMPANIES HAVE TO OFFER DISCOUNTS OF 10 TO 25 TO BIG MANAGEDCARE BUYERS WHO CONTROL A LARGE AND GROWING PORTION OF THE MARKET MOREOVER MANY OF PFIZER'S PRODUCTS INCLUDING SOME OF ITS BIGGEST FACE STRONG COMPETITION FROM GENERIC OR OTHER BRANDED DRUGS HE SAID HE PREDICTED WEAK FOURTHQUARTER RESULTS FROM OTHER DRUG COMPANIES FOR THE FULL YEAR PFIZER'S NET INCOME FELL 19 TO 6575 MILLION OR 205 A SHARE ON A SALES INCREASE OF 34 TO 748 BILLION THE RESULTS INCLUDED A 525 MILLION RESTRUCTURING CHARGE REPORTED IN THE THIRD QUARTER 9401200084 940120 DIGITAL EQUIPMENT POSTS SURPRISE LOSS IN LATEST QUARTER AS REVENUE FALLS 12 BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP REPORTED A SURPRISE LOSS IN THE FISCAL SECONDQUARTER ON A STEEP 12 DECLINE IN REVENUE TRIGGERING HEAVY SELLING OF ITS STOCK AND RAISING THE PROSPECT OF MORE COSTCUTTING AND LAYOFFS DIGITAL SAID A SHARP DECLINE IN SALES OF ITS LARGER MORE PROFITABLE COMPUTERS OVERWHELMED RISING SALES OF PERSONAL COMPUTERS AND WORKSTATIONS IT WAS THE SECOND CONSECUTIVE QUARTER OF REVENUE DECLINES FOR DIGITAL WHICH HAS BEEN STRUGGLING LIKE OTHER MAKERS OF LARGE COMPUTERS TO MAKE A TRANSITION TO NEW TECHNOLOGY WILLIAM M STEUL CHIEF FINANCIAL OFFICER SAID DIGITAL IS MOVING AHEAD WITH PREVIOUSLY DISCLOSED PLANS TO CUT ITS WORK FORCE TO 85000 JOBS BY THE END OF ITS FISCAL YEAR ON JUNE 30 A REDUCTION OF 7000 JOBS OR 79 OF THE TOTAL HE WOULDN'T SAY WHETHER THE COMPANY WOULD GO DEEPER THAN THAT LEVEL BUT ANALYSTS PREDICTED YESTERDAY THAT STILL MORE CUTS WOULD BE NECESSARY DIGITAL SHARES TUMBLED 375 OR 10 TO 3275 APIECE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF 28 MILLION SHARES DIGITAL BASED IN MAYNARD MASS POSTED A NET LOSS OF 721 MILLION OR 53 CENTS A SHARE IN THE FISCAL SECOND QUARTER ENDED JAN 1 COMPARED WITH A YEAREARLIER LOSS OF 739 MILLION OR 57 CENTS A SHARE THE RESULTS WERE SHARPLY BELOW MOST ANALYSTS' FORECASTS OF BREAKEVEN RESULTS OR A MODEST PROFIT AND SUGGESTED THAT A SUSTAINED TURNAROUND WAS STILL OUT OF REACH IT'S BEEN ONE STEP FORWARD AND TWO STEPS BACK SAID STEVEN MILUNOVICH AN ANALYST AT MORGAN STANLEY & CO DIGITAL ACHIEVED A PROFIT LAST YEAR IN ITS FISCAL FOURTH QUARTER AFTER TWO YEARS OF LOSSES AND LAYOFFS BUT HAS SLIPPED BACK INTO THE RED IN THE TWO QUARTERS SINCE THEN ANALYSTS ALSO WERE RATTLED BY THE SHARP DECLINE IN REVENUE WHICH SLUMPED TO 325 BILLION FROM 367 BILLION A YEAR AGO DIGITAL SAID ABOUT HALF OF THE DECLINE IN REVENUE WAS BECAUSE OF CURRENCY TRANSLATIONS FROM OVERSEAS MARKETS WHICH ARE ABOUT 63 OF SALES MR STEUL SAID SALES OF THE NEW ALPHA COMPUTER DESIGN ON WHICH THE COMPANY HAS STAKED MUCH OF ITS FUTURE ARE NOW RUNNING AT 10 OF PRODUCT SALES WHILE OLDER VAX SYSTEM SALES ARE SLOWING THE VAX IS DECLINING FASTER THAN THE ALPHA IS RISING AT THIS POINT HE SAID SMALLER SYSTEMS INCLUDING PERSONAL COMPUTERS ALSO ARE SELLING WELL HE SAID BUT THESE YIELD SMALLER PROFIT MARGINS MR STEUL SAID ALPHA SALES HAD BEEN RESTRAINED BY DELAYS IN SOME COMMERCIALSTRENGTH SOFTWARE PACKAGES FOR ALPHA HE SAID IT WOULD BE ANOTHER TWO OR THREE QUARTERS BEFORE ALL OF THE GAPS WERE FILLED DIGITAL IS ALSO SOMEWHAT DEPENDENT ON THE ADOPTION RATE OF WINDOWS NT A NEW SOFTWARE OPERATING SYSTEM FROM MICROSOFT CORP THAT CAN RUN ALPHA MACHINES IT WAS DELAYED LAST YEAR BUT IS NOW WIDELY AVAILABLE THE FIRST ALPHA COMPUTERS WENT ON SALE LATE IN 1992 CUSTOMERS ARE DEFERRING THE CONVERSION TO ALPHA AS LONG AS THEY CAN BECAUSE CONVERTING TO ANY NEW SYSTEM IS COSTLY AND TIMECONSUMING SAID JOHN JONES AN ANALYST WITH SALOMON BROTHERS THAT'S HURTING DIGITAL'S ABILITY TO USE ITS BEST WEAPON WHICH IS ALPHA ALPHA SYSTEMS EMPLOY REDUCED INSTRUCTIONSET OR RISC CHIP DESIGN AND ARE RATED BY INDEPENDENT ANALYSTS AS THE FASTEST CHIPS CURRENTLY ON THE MARKET BUT DIGITAL HAS SO FAR BEEN UNABLE TO PERSUADE OTHER MAJOR COMPUTER MAKERS TO ADOPT IT ALPHA ALSO FACES HEAVY COMPETITION FROM OTHER NEW CHIPS INCLUDING A GROUP OF INTERNATIONAL BUSINESS MACHINES CORP MOTOROLA INC AND APPLE COMPUTER INC WHICH BACK THE RIVAL POWERPC CHIP BARRY WILLMAN AN ANALYST WITH GOLDMAN SACHS & CO ESTIMATED THAT ALPHA SYSTEM SALES ROSE 18 FROM THE PRECEDING QUARTER TO ABOUT 160 MILLION BY CONTRAST HE EXPECTS VAX SALES TO DROP 35 IN FISCAL 1994 FOLLOWING A 15 DECLINE IN FISCAL 1993 MR WILLMAN SAID PERSONALCOMPUTER SALES WERE STRONG RISING TO 250 MILLION IN THE QUARTER OR DOUBLE YEARAGO SALES AFTER THE RESULTS WERE REPORTED YESTERDAY STANDARD & POOR'S CORP DOWNGRADED ITS RATINGS OF DIGITAL'S 1 BILLION OF SENIOR DEBT TO TRIPLEBPLUS FROM SINGLEAMINUS THE COMPANY'S COMMERCIAL PAPER WAS LOWERED TO A2 FROM A1 THE RATING AGENCY SAID THE DOWNGRADE REFLECTED CONTINUING LOSSES THROUGH THE FIRST HALF OF FISCAL 1994 AND GREATER UNCERTAINTY REGARDING THE COMPANY'S PERFORMANCE DIGITAL OPERATES IN A VERY DIFFICULT BUSINESS ENVIRONMENT EXACERBATED BY A WEAK EUROPEAN MARKETPLACE AND A MAJOR PRODUCT TRANSITION S&P SAID CASH BALANCES REMAIN STRONG AT 11 BILLION BUT HAVE DECREASED FROM 16 BILLION AT SEPT 30 THE AGENCY NOTED STILL S&P SAID THE CURRENT RATING REFLECTS DIGITAL'S GOOD OVERALL MARKET POSITION A RELATIVELY STABLE AND PROFITABLE SERVICE REVENUE BASE REPRESENTING ABOUT HALF OF SALES AND A STILLSTRONG CAPITAL STRUCTURE WHILE OVERALL DEBT REMAINS CONSERVATIVE 9401200083 940120 TECHNOLOGY & HEALTH MICROSOFT'S SECONDQUARTER EARNINGS CLIMBED 22 TOPPING EXPECTATIONS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP THE WORLD'S LARGEST SUPPLIER OF COMPUTER SOFTWARE POSTED SHARPLY HIGHER PROFIT FOR ITS SECOND QUARTER ENDED DEC 31 SLIGHTLY BEATING EXPECTATIONS BY EARNING 289 MILLION OR 95 CENTS A SHARE ON SALES OF 113 BILLION NET INCOME FOR THE QUARTER ROSE 22 FROM 236 MILLION OR 78 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FOR THE PERIOD ROSE 20 FROM 938 MILLION IN THE YEARAGO PERIOD ANALYSTS CHEERED THE RESULTS WHICH COME AMID CONCERN OVER MICROSOFT'S SLOWING GROWTH THIS IS AN IMPRESSIVE FEAT SAID DAVID READERMAN AN ANALYST AT LEHMAN BROTHERS SEPARATELY MICROSOFT SAID THE US PATENT & TRADEMARK OFFICE HAS OPENED THE WAY FOR THE COMPANY TO GAIN A TRADEMARK ON THE WORD WINDOWS WHEN USED TO DESCRIBE PERSONALCOMPUTER SOFTWARE PRODUCTS THE RULING REVERSED A DECISION LAST YEAR DENYING MICROSOFT THE POSSIBILITY OF A TRADEMARK ON WINDOWS THE WORLD'S PREMIER GROWTH COMPANY OVER THE PAST DECADE MICROSOFT IS NOW SO DOMINANT IN THE PERSONALCOMPUTER SOFTWARE FIELD THAT ACHIEVING ITS HISTORIC GAINS OF 50 OR MORE APPEAR IMPOSSIBLE YET AS YESTERDAY'S REPORT SHOWED MICROSOFT CONTINUES TO EARN BETTER THAN 25 CENTS ON EVERY DOLLAR OF SALES A STUNNING NETPROFIT MARGIN BY ANY INDUSTRY'S STANDARDS IN A STATEMENT MICROSOFT ATTRIBUTED THE SOLID PERFORMANCE TO THE ONGOING ADOPTION OF ITS WINDOWS OPERATING PROGRAM AND APPLICATIONS SOFTWARE THE COMPANY ALSO CREDITED THE GREAT RESPONSE GIVEN TO ITS OFFICE PACKAGE WHICH CONTAINS A SUITE OF BASIC BUSINESS APPLICATIONS THE RESULTS WERE ANNOUNCED AFTER THE MARKET CLOSE MICROSOFT SHARES CLOSED DOWN 1375 AT 8325 IN NASDAQ STOCK MARKET TRADING TRADEMARK OFFICIALS WERE NOT AVAILABLE FOR COMMENT BUT MICROSOFT SAID THE FEDERAL OFFICE WILL PUBLISH A NOTICE OF ITS INTENT TO ISSUE A WINDOWS TRADEMARK IN THE COMING MONTHS OPPONENTS OF SUCH A MOVE WHO IN THE PAST HAVE EXPRESSED FEARS THAT THE TRADEMARK WOULD BE USED BY MICROSOFT TO BLUDGEON RIVALS CAN CRITICIZE THE PROPOSED ACTION BEFORE IT TAKES EFFECT INDUSTRY EXECUTIVES WHO ASKED NOT TO BE NAMED SAID IT APPEARS UNLIKELY THAT THEY WILL CONVINCE THE TRADEMARK OFFICE TO ONCE AGAIN REVERSE ITS DECISION THEY SAY THAT MICROSOFT'S GARNERING OF A WINDOWS TRADEMARK SEEMS INEVITABLE IN RECENT MONTHS MICROSOFT HAS PAINSTAKINGLY OBTAINED AFFIDAVITS FROM RIVAL SOFTWARE COMPANIES THAT SUPPORT MICROSOFT'S CONTENTION THAT WINDOWS IS NOT A GENERIC SOFTWARE TERM BUT SPECIFICALLY REFERS TO ITS PROPRIETARY OPERATING PROGRAM IN HIGHTECH INDUSTRIES BATTLES OVER TRADEMARKS HAVE TAKEN ON INCREASING IMPORTANCE AS COMPANIES SEEK TO CAPITALIZE IN THE MARKETPLACE ON THEIR INNOVATIONS MICROSOFT ARGUES THAT IT WANTS THE WINDOWS TRADEMARK TO PROTECT CUSTOMERS SO PEOPLE CAN'T CLAIM THINGS ARE WINDOWS COMPATIBLE WHEN THEY AREN'T SAID JONATHAN LAZARUS THE COMPANY'S VICE PRESIDENT OF SYSTEM STRATEGY BUT MR LAZARUS SAID THE TRADEMARK ALSO WILL BOOST MICROSOFT'S EFFORTS TO PROMOTE WINDOWS AS A STANDARD FOR PERSONAL COMPUTERS THE RISING TIDE OF WINDOWS AS A SOFTWARE STANDARD REMAINS THE KEY TO MICROSOFT'S ROBUST HEALTH AS OF DEC 31 THE COMPANY HELD A WHOPPING 28 BILLION IN CASH OR SHORTTERM INVESTMENTS PROFIT FOR THE SIX MONTHS ENDED DEC 31 TOTALED 528 MILLION OR 174 A SHARE COMPARED WITH 445 MILLION OR 148 A SHARE IN THE YEARAGO PERIOD REVENUE TOTALED 21 BILLION FOR THE SIX MONTHS ENDED DEC 31 COMPARED WITH 176 BILLION IN THE YEARAGO PERIOD 9401200082 940120 INTERNATIONAL LONRHO'S ROWLAND HAS INHOUSE RIVAL BOCK WANTS TO PARE EMPIRE TO THREE CORE AREAS BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR 32 YEARS ROLAND TINY ROWLAND DOMINATED LONRHO PLC OVERSEEING ITS GROWTH INTO A CONGLOMERATE WITH INTERESTS IN SUGAR MINING OIL AUTOS PUBLISHING AND HOTELS TO NAME JUST A FEW ALONG THE WAY HIS GLOBETROTTING EXPLOITS WON HIM WIDESPREAD NOTORIETY NOW HIS CONTROVERSIAL REIGN MAY BE NEAR AN END HIS NEMESIS THE MAN HE SELECTED A YEAR AGO TO KEEP LONRHO'S TROUBLED GLOBAL EMPIRE FROM CRUMBLING UNDER DEBT GERMAN INVESTOR DIETER BOCK WITH MR ROWLAND'S BLESSING MR BOCK INVESTED 135 MILLION 202 MILLION IN LONRHO FOR AN 18 STAKE IN DECEMBER 1992 AND BECAME COMANAGING DIRECTOR WITH MR ROWLAND THE MEN AGREED ON A POWERSHARING FORMULA BUT HAVEN'T AGREED ON MUCH ELSE SINCE WHILE MR ROWLAND WANTS TO KEEP THE LONRHO EMPIRE INTACT MR BOCK WANTS TO PARE IT TO THREE CORE BUSINESSES MINING AGRICULTURE AND HOTELS AND POSSIBLY SHED MORE THAN 1 BILLION IN ASSETS FROM THE ROLLSROYCE DEALERSHIPS IN THE UK TO A BEER BREWERY IN ZAMBIA IN AN INTERVIEW MR ROWLAND INSISTS THE COMPANY'S PROBLEMS ARE LARGELY SHORTTERM THE RESULT OF DEPRESSED PRECIOUSMETALS PRICES AND UNFAVORABLE FOREIGNEXCHANGE RATES LONRHO IS FINE HE SAYS NOTING THAT THE COMPANY SOLD MORE THAN 500 MILLION IN ASSETS EVEN BEFORE MR BOCK ARRIVED AND LONRHO'S DEBT IS NOW AT 26 OF EQUITY FROM 70 TWO YEARS AGO MR BOCK 54 YEARS OLD ARGUES THAT LONRHO CAN'T REMAIN IN ITS CURRENT FORM 700 DIVERSIFIED COMPANIES IN 60 COUNTRIES OUR OWN PEOPLE AND OUTSIDERS CAN'T UNDERSTAND LONRHO HE SAYS LONRHO'S PERFORMANCE IN RECENT YEARS PROVES HIS POINT MR BOCK'S BACKERS SAY MR ROWLAND'S HABIT OF BORROWING HEAVILY FOR ACQUISITIONS BY THE END OF 1991 LONRHO'S DEBT WAS 11 BILLION LED TO TROUBLE WHEN THE RECESSION HIT THE COMPANY'S PRETAX PROFIT PLUNGED 61 IN THE FISCAL YEAR ENDED SEPT 30 1992 TO 80 MILLION FROM A RESTATED 205 MILLION LONRHO WHICH OFTEN BOASTED THAT ITS DIVIDENDS HAD INCREASED 100FOLD FROM 1961 TO 1990 SLASHED ITS 1992 DIVIDEND TO 4 PENCE A SHARE FROM 13 PENCE THE COMPANY'S STOCK WHICH WAS AS HIGH AS 353 PENCE A SHARE IN LATE 1988 HAS PLUMMETED WITH ITS FORTUNES THE SHARES WERE TRADING AT 72 PENCE EACH AT THE TIME MR BOCK MADE HIS INVESTMENT SINCE THEN THEY HAVE DOUBLED CLOSING YESTERDAY AT 149 1/2 PENCE UP 3 1/2 IN TRADING ON THE LONDON STOCK EXCHANGE AS THE ASSET SALES HAVE PARED DEBT THE TWO MEN HAVE HAD SOME NASTY OPEN SQUABBLES MR BOCK HAS A FULLTIME LONDON PUBLICRELATIONS CONSULTANT PUSHING HIS CASE MR ROWLAND WHO OWNS A 62 STAKE IN LONRHO IS SAID TO HAVE HIRED A COMPANY TO INVESTIGATE MR BOCK'S PREVIOUS BUSINESS DEALINGS THE CLASH REFLECTS DIFFERENT BUSINESS PHILOSOPHIES AND PERSONALITIES TO THE 77YEAROLD MR ROWLAND NICKNAMED TINY BECAUSE OF HIS TOWERING HEIGHT BIGGER IS BETTER AND LONRHO'S DIVERSITY A STRENGTH BORN IN INDIA UNDER THE BRITISH RAJ HE ADOPTED AFRICA AS HIS HOME AND BUILT A MINOR COMPANY THE LONDON & RHODESIA MINING & LAND CO INTO A MAJOR MULTINATIONAL MR ROWLAND'S EXPLOITS FROM COZYING UP TO LIBYAN RULER COL MOAMMAR GADHAFI TO GETTING INVOLVED IN PEACE NEGOTIATIONS BETWEEN WARRING FACTIONS IN MOZAMBIQUE AND WAGING A COSTLY LOSING BATTLE FOR CONTROL OF HARROD'S DEPARTMENT STORE WON HIM WIDESPREAD NOTORIETY IN CONTRAST MR BOCK IS A SOFTSPOKEN ACCOUNTANT WITH A LAW DEGREE AND A LOVE OF ART BORN IN THE FORMER EAST GERMANY HE MADE HIS FORTUNE IN REAL ESTATE AND STILL IS SUPERVISORY BOARD CHAIRMAN OF ADVANTA MANAGEMENT AG A WESTERN GERMAN COMMERCIALPROPERTY CONCERN SO FAR INVESTORS COMMEND MR BOCK'S EFFORTS THE CHANGE IS THERE FOR ALL TO SEE SAYS PAUL BEAUFRERE A SECURITIES ANALYST AT JAMES CAPEL & CO LONDON MR BOCK PREVAILED IN THE FIRST ROUND OF HIS QUEST TO REORGANIZE LONRHO GETTING THE BOARD TO APPROVE THREE OUTSIDE DIRECTORS THE FIRST SINCE 1974 AT MR BOCK'S URGING LONRHO'S BOARD LAST MONTH ALSO AGREED TO SET A MANDATORY RETIREMENT AGE FOR DIRECTORS THOUGH THEY HAVEN'T DECIDED YET ON THE AGE MR BOCK FAVORS AGE 65 THAT WOULD FORCE OUT FOUR OF MR ROWLAND'S STAUNCHEST SUPPORTERS ON THE 16MEMBER BOARD MR ROWLAND HOWEVER WOULD BE EXEMPT THE ISSUE WAS SO SENSITIVE THAT ONE OF MR ROWLAND'S BOARD SUPPORTERS SARCASTICALLY PROPOSED MAKING RETIREMENT MANDATORY AT 55 WHICH WOULD FORCE MR BOCK OUT SHORTLY IN ANOTHER REBUKE TO MR ROWLAND THE BOARD RECENTLY OVERRULED ONE OF HIS MORE CONTROVERSIAL VENTURES THE BANKROLLING BY LONRHO OF A DOCUMENTARY ABOUT THE 1988 BOMBING OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND THE DOCUMENTARY REPORTEDLY WOULD HAVE SHOWN LIBYANS ARE BEING UNFAIRLY BLAMED FOR THE TRAGEDY THOUGH WESTERN INTELLIGENCE AGENCIES BELIEVE THEM RESPONSIBLE MR ROWLAND HAS HAD A LONG RELATIONSHIP WITH LIBYA IN EARLY 1992 DEFYING INTERNATIONAL SANCTIONS HE SOLD A STAKE IN LONRHO'S METROPOLE HOTEL GROUP TO LIBYAN INVESTORS MEANWHILE MR BOCK IS FORGING AHEAD WITH EFFORTS TO IDENTIFY ADDITIONAL ASSETS THAT CAN BE SOLD HE IS SAID TO BE CONSIDERING SELLING SOME OF LONRHO'S HOTEL PROPERTIES WHILE RETAINING THE RIGHT TO MANAGE THEM ANOTHER POSSIBLE TARGET LONRHO'S 800 OR SO AFRICAN TRADING COMPANIES MR BOCK SAYS FURTHER ASSET SALES WILL LET LONRHO ACQUIRE OTHER COMPANIES RELATED TO ITS CORE BUSINESSES NOT JUST ANY BUSINESS THAT CAN BE CHEAPLY BOUGHT HE ADDS COMPLAINING THIS HAD BEEN LONRHO'S POLICY FOR YEARS ANALYSTS EXPECT LONRHO TO REPORT PRETAX PROFITS FOR THE YEAR ENDED SEPT 30 AT ABOUT 90 MILLION UP 12 FROM THE YEAR BEFORE BUT STILL A LONG WAY FROM THE PROFIT POTENTIAL THIS COMPANY HAS SAYS MR BEAUFRERE THE ANALYST MR BOCK SAYS HE HAS SCRUTINIZED LONRHO'S ACCOUNTS IN THE PAST YEAR AND IS CONVINCED LONRHO DOESN'T CONTAIN THE TYPE OF HIDDEN LOSSES THAT BROUGHT DOWN ROBERT MAXWELL'S PUBLISHING EMPIRE THERE ARE NO BLACK HOLES HE SAYS BUT WITH LONRHO'S INTRICATE WEB OF FINANCIAL DEALINGS THE MARKET HAS LITTLE ELSE BUT MR BOCK'S WORD TO GO ON MR BOCK'S SUPPORTERS SAY THEY EXPECT MR ROWLAND WILL OPT FOR RETIREMENT SOMETIME IN THE NEXT 15 TO 18 MONTHS I EXPECT HE WILL GET A LARGE PREMIUM FOR THE REST OF HIS SHARES AND GO SAYS ONE PERSON CLOSE TO LONRHO'S BOARD BUT MR ROWLAND SAYS THAT WILL HAPPEN ONLY IF I HAVE AN ACCIDENT AND I'M INCAPABLE OF TAKING MYSELF TO THE OFFICE HIS SUPPORTERS NOTE MR ROWLAND HAS BEAT THE ODDS BEFORE HE AND HIS FAMILY WERE INTERNED HERE IN WORLD WAR II BECAUSE HIS FATHER WAS GERMAN HE NEVER GRADUATED FROM COLLEGE AND DIDN'T STRIKE IT RICH UNTIL HE WAS 40 AND THEY POINT OUT THAT MR BOCK HAS NO TRACK RECORD RUNNING A LARGE DIVERSIFIED CORPORATION WHILE MR ROWLAND RETAINS MANY ALLIES WITHIN LONRHO MR BOCK WHO HAS AN OPTION TO INCREASE HIS LONRHO STAKE TO 25 ALSO VOWS TO REMAIN I WILL HANG ON FOR SOME YEARS HE SAYS LONG ENOUGH SO THAT I CAN STEP DOWN WITHOUT ADVERSELY AFFECTING THE SHARE PRICE 9401200081 940120 REVIEW & OUTLOOK EDITORIAL OPPORTUNITY IN ADVERSITY WITH THE LOS ANGELES AREA GRIPPED BY TRAFFIC DELAYS AND FACING HUNDREDS OF MILLIONS OF DOLLARS IN COSTS TO REPAIR ROADS AND OTHER INFRASTRUCTURE MIGHT GOVERNOR PETE WILSON TAKE A CUE FROM THE PRESIDENTIAL RESPONSE TO HURRICANES ANDREW AND INIKI GEORGE BUSH ORDERED THE RELAXATION OF DAVISBACON PREVAILING WAGE STANDARDS TO FACILITATE REPAIRS IN FLORIDA AND HAWAII FROM THOSE NATURAL DISASTERS CALIFORNIA WITH ITS OWN LABOR LAW EXTENDING UNION RULES TO PUBLICWORKS PROJECTS ENJOYS A SIMILAR OPPORTUNITY GOVERNOR WILSON CAN'T EXPECT BILL CLINTON TO FOLLOW IN THE BUSH FOOTSTEPS THE NEW PRESIDENT WAS QUICK TO UNDO HIS PREDECESSOR'S DAVISBACON CHANGES UPON TAKING OFFICE AS A PAYBACK FOR ORGANIZED LABOR'S SUPPORT ON A TRIP TO CALIFORNIA YESTERDAY MR CLINTON DIDN'T OFFER TO RELAX THE RULES AS THEY APPLY MOST SIGNIFICANTLY TO FEDERAL INTERSTATE HIGHWAYS CALIFORNIA HAS PLENTY OF ITS OWN PUBLIC WORKS TO REPAIR HOWEVER AND NONUNION CONTRACTORS ESTIMATE A 15 TO 20 SAVING IF BUILDERS ARE SPARED NOT ONLY THE EXPENSE OF PAYING THE UNION WAGE BUT ALSO OF SHOULDERING THE WORK RULES AND THE PAPERWORK OF ASCERTAINING EXACTLY WHAT IS OWED EACH WORKER UNDER THE COMPLEX PREVAILINGWAGE SCHEDULE EACH CRAFT MAY HAVE SEVERAL CLASSIFICATIONS AND THE RATES CHANGE BY COUNTY IN FACT GOVERNOR WILSON MIGHT USE THIS OCCASION TO INITIATE SOME LONGOVERDUE CHANGES IN THE WAY HIS STATE LIKE MANY OTHERS ASSISTS THE CRAFT UNIONS IN RESTRICTING EMPLOYMENT AND TRAINING OPTIONS MORE THAN 75 OF THE CONSTRUCTION BUSINESS TODAY IS NONUNION BUT WHEN IT COMES TO PUBLIC WORKS THE UNION APPRENTICESHIP GATEKEEPERS HOLD TREMENDOUS SWAY THE RESULT IS THAT HUNDREDS OF THOUSANDS OF BLUECOLLAR JOBS PAYING DECENT WAGES HAVE BEEN STIFLED UNDERREPRESENTED GROUPS IN THE LABOR FORCE HAVE SUFFERED MOST NONUNION TRAINING PROGRAMS ARE OPENING HERE AND THERE BUT UNIONS HAVE BEEN ABLE TO DELAY MOST OF THEM WITH UNENDING PROCEDURAL PLOYS BEFORE SYMPATHETIC STATE REGULATORS THE CALIFORNIA APPRENTICESHIP COUNCIL IS NO EXCEPTION GOVERNOR WILSON WHO APPOINTS THAT BODY MIGHT WISH TO SUGGEST A CONTRARY COURSE PRIOR TO THE COUNCIL'S EARLY FEBRUARY MEETING AT WHICH MORE NONUNION PROPOSALS ARE ON THE TABLE THE CALIFORNIA DISASTER WHICH SEVERAL POLITICIANS SAY WILL REQUIRE YET ANOTHER INCREASE IN THE STATE SALES TAX RAISES OTHER POSSIBILITIES THE EARLY TRACK RECORD OF PRIVATIZED ROAD CONSTRUCTION SUGGESTS WORK COULD BE DONE CHEAPER AND FASTER WHERE ROADWAYS COULD BE TURNED INTO TOLLWAYS THIS WOULD ALSO PERMIT ADOPTION OF CONGESTION PRICING EVEN FOR TRADITIONAL HIGHWAYS THE STATE DEPARTMENT OF TRANSPORTATION HAS BEEN TRYING TO CONTRACT OUT DESIGN ENGINEERING AND LANDSCAPE WORK BUT ITS UNIONIZED STAFF LAST YEAR SUCCEEDED IN A LAWSUIT TO BLOCK MUCH OF THAT EFFORT POLICYMAKERS COULD RIGHT THAT WRONG MEANTIME LEGALIZED JITNEY SERVICE COULD HELP ALLEVIATE TRAFFIC CONGESTION AN EARTHQUAKE IS A DRAMATIC REMINDER OF THE IMPORTANCE OF ROADWAYS AND OTHER MAJOR PUBLIC PROJECTS THE COSTS OF GETTING SUCH FACILITIES BUILT AND NOW REBUILT HAS A LOT TO DO WITH BUSINESS COMPETITIVENESS IN ANY JURISDICTION RECESSIONWEARY CALIFORNIA COULD USE THE MISFORTUNE OF ITS LATEST CALAMITY TO CREATE A BETTER CLIMATE FOR ENTERPRISE AND EMPLOYMENT 9401200080 940120 REVIEW & OUTLOOK EDITORIAL NEW POLITICAL WINDS IT IS WORTH NOTING THAT FRESHER WINDS THAN WHITEWATER DEVELOPMENT ARE BLOWING ACROSS THE AMERICAN POLITICAL LANDSCAPE TODAY THERE'S MUCH WONDERMENT FOR EXAMPLE THAT THE BOOK OF VIRTUES BY WILLIAM BENNETT SUDDENLY APPEARED THIS WEEK AS THE NATION'S NUMBER ONE BOOK OF NONFICTION ON THE NEW YORK TIMES BESTSELLER LIST THAT A BOOK OF MORAL TALES SHOULD OVERTAKE PRIVATE PARTS BY HOWARD STERN SUGGESTS THAT INDEED SOME NEW VOICES ARE FINDING THEIR WAY INTO THE MAINSTREAM OF THE NATION'S DIALOGUES SIMILARLY IN ELECTORAL POLITICS THREE NEW REPUBLICANS TOOK OFFICE THE PAST FEW WEEKS NEW JERSEY'S GOVERNOR CHRISTIE WHITMAN VIRGINIA GOVERNOR GEORGE ALLEN AND NEW YORK CITY'S NEW MAYOR RUDOLPH GIULIANI THESE THREE DESERVE ATTENTION BECAUSE THEIR EARLY STATEMENTS AND ACTIONS SUGGEST THAT US POLITICS MAY BE TAKING A TURN TOWARD CLARITY CLARITY IS THE THEME WE'VE CHOSEN BECAUSE AT THE NATIONAL LEVEL IT ISN'T VERY MUCH IN EVIDENCE WHATEVER THE REASON THE CLINTON PRESIDENCY REFUSES TO COME INTO FOCUS THE NEW PRESIDENT'S AMBIVALENT POLITICAL CHARACTER IS FRUSTRATING BECAUSE HE SUCCEEDED A PRESIDENT WHOSE POLITICS HAD COLLAPSED INTO A MUDDLE THE NEW DEMOCRAT WHO WON THE ELECTION SHOWS UP ONLY INTERMITTENTLY AMID THE CLOUDS NOW OUT IN THE COUNTRY COME NEWLY ELECTED GOP POLITICIANS WHO ARE LETTING VOTERS KNOW PRECISELY WHAT THEY ARE GETTING MRS WHITMAN WHO WAS INAUGURATED TUESDAY DISPENSED WITH THE TRADITIONAL HIGHFLOWN RHETORIC TO STARTLE HER AUDIENCE WITH A SERIES OF POLICY ANNOUNCEMENTS A 5 CUT IN NEW JERSEY'S INCOME TAXES RETROACTIVE TO JANUARY 1 NOTING THAT WHEN SHE ANNOUNCED HER TAXCUT PLAN DURING THE CAMPAIGN THE SKEPTICS GROANED ACTUALLY THEY MOCKED THE IDEA AS DEADANDBURIED REAGANISM SHE SAID IF PRESIDENT CLINTON AND HIS CONGRESS CAN REACH BACKWARD INTO TIME AND RAISE YOUR TAXES RETROACTIVELY YOUR GOVERNOR AND YOUR LEGISLATURE CAN CUT THEM RETROACTIVELY SHE PROPOSED ELIMINATING ALL INCOME TAXES FOR THOSE EARNING LESS THAN 7500 AND A CUT IN THE CORPORATE BUSINESS TAX RETROACTIVE TO JANUARY 1 AND SHE EXPLICITLY ENDORSED JERSEY CITY'S SCHOOL VOUCHER PROPOSAL WE SHOULD GIVE MAYOR BRET SCHUNDLER THE GREEN LIGHT TO TEST SCHOOL VOUCHERS AND INVITE THE TOP SCHOOL EXPERTS IN THE NATION TO MEASURE THE RESULTS THE STATE'S EDUCATION ESTABLISHMENT THE UNIONS THE SCHOOL BOARDS ASSOCIATION EVEN THE NAACP AND NOW OPPOSES THE IDEA MRS WHITMAN SAID SOMETHING ELSE THAT BROUGHT TO MIND THE POLITICS OF A FORMER CALIFORNIA GOVERNOR WHO THEN BECAME PRESIDENT SHE SAID OUR PRINCIPAL PROBLEMS ARE NOT THE PRODUCT OF GREAT ECONOMIC SHIFTS OR OTHER VAST UNSEEN FORCES THEY ARE THE CREATION OF GOVERNMENT INTERESTINGLY VIRGINIA GOVERNOR GEORGE ALLEN WAS MAKING ALMOST PRECISELY THE SAME POINT THE SAME DAY IN HIS STATE OF THE COMMONWEALTH SPEECH GOV ALLEN WANTS TO REQUIRE A SUPERMAJORITY VOTE TO RAISE INCOME OR SALES TAXES TO LIMIT THE EXPANSION OF STATE GOVERNMENT HE WANTS TO REQUIRE AN ECONOMIC IMPACT ANALYSIS BEFORE ANY NEW REGULATIONS ARE ENACTED AND HE RIPPED INTO THE SPENDING MANDATES THAT THE STATE HAS BEEN DUMPING ONTO LOCAL GOVERNMENTS BOTH MR ALLEN AND MRS WHITMAN ENDORSED THE THREE STRIKES AND YOU'RE OUT PLAN FOR CRIMINALS WHO COMMIT THREE MAJOR FELONIES AND MR ALLEN WANTS TO GET INITIATIVES AND REFERENDUMS ON THE BALLOT WHICH NEW JERSEY REPUBLICANS PROMISED TO DO A FEW YEARS AGO THEN RENEGED MEANWHILE IN NEW YORK CITY MAYOR GIULIANI CALLS FOR PRIVATIZATION EFFORTS BRINGING UP THE REAR AFTER RUSSIA BUT BETTER LATE THAN NEVER THE EARLY DAYS OF THE GIULIANI ADMINISTRATION ARE INTRIGUING BECAUSE NEW YORKERS MORE THAN ANY ONE COMPLAINT HAD BECOME PARTICULARLY MOROSE ABOUT THE GENERAL CONDITIONS OF LIFE IN THEIR CITY SO THE MAYOR HAS ORDERED THE POLICE TO MOVE AGAINST AGGRESSIVE PANHANDLERS AND SQUEEGEE MEN AND HE REFUSES TO MEET WITH REIGNING DEMAGOGUE AL SHARPTON AGAIN ALL THIS STANDS IN CONTRAST TO THE GENERAL MUDDLE IN WASHINGTON WHERE SEEMINGLY NO ACTION MAY BE TAKEN THAT IS NOT HEDGED IN FIVE DIRECTIONS TO APPEASE FIVE ENTRENCHED CONSTITUENCIES SO FAR THESE THREE SEEM ABLE TO ACTUALLY THINK FOR THEMSELVES AS TO WHAT COMPASS GUIDES THESE REPUBLICANS GOVERNOR ALLEN EXPLICITLY CONNECTS HIMSELF TO OUR JEFFERSONIAN CONSERVATIVE PRINCIPLES HE CALLS IT CREATIVE CONSERVATISM OBSERVERS PROFESS TO BE SLIGHTLY SURPRISED AT THE SELFASSURED CONFIDENCE WITH WHICH CHRISTIE WHITMAN HAS TAKEN CONTROL OF HER STATE'S AGENDA MAYBE IT'S NOT SO SURPRISING IN 1990 AT THE END OF A DEBATE WITH BILL BRADLEY BOTH WERE ASKED WHICH FIGURE IN PUBLIC LIFE THEY MOST ADMIRED SHE REPLIED MARGARET THATCHER AS WE SAID CLARITY MAY BE RETURNING TO AMERICA'S POLITICS 9401200079 940120 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1994 REED PUBLISHING USA 9401200078 940120 LAZARD MERRILL SPORT NEW FACES FOR MUNI WORK BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LAZARD FRERES & CO AND MERRILL LYNCH & CO HAVE MADE SIGNIFICANT CHANGES IN THE MANAGEMENT OF THEIR MUNICIPALBOND OPERATIONS IN THE WAKE OF A VARIETY OF FEDERAL STATE AND LOCAL INVESTIGATIONS THAT BEGAN LAST MAY LAZARD HAS QUIETLY INSTALLED A NEW HEAD OF ITS PUBLIC FINANCE DEPARTMENT WHILE MERRILL HAS REPLACED TWO OF THE THREE MANAGING DIRECTORS WHO WERE PUT ON ADMINISTRATIVE LEAVE LAST YEAR ACCORDING TO MUNICIPALBONDFINANCE OFFICIALS LAZARD PARTNER MICHAEL DEL GIUDICE WAS REMOVED FROM HIS POST AS CHIEF OF LAZARD'S PUBLIC FINANCE DEPARTMENT LATE LAST YEAR MR DEL GIUDICE A FORMER CHIEF OF STAFF FOR NEW YORK GOV MARIO CUOMO IS SPENDING MUCH OF HIS TIME HELPING LAZARD ATTORNEYS DEFEND AGAINST ALLEGATIONS OF WRONGDOING BY INVESTIGATORS IN LOUISIANA BOSTON NEW YORK CITY AND WASHINGTON DC WHERE MR DEL GIUDICE TESTIFIED BEFORE CITY COUNCIL MEMBERS ON TUESDAY MR DEL GIUDICE WAS SUCCEEDED BY JOHN TAMAGNI THE PARTNER WHO RAN THE DEPARTMENT WHEN MR DEL GIUDICE FIRST JOINED LAZARD IN 1985 A LAZARD SPOKESMAN DECLINED TO COMMENT ON MANAGEMENT CHANGES IN THE FIRM'S MUNICIPALBOND BUSINESS BUT LAZARD INSIDERS SOUGHT TO DOWNPLAY AN INDUSTRY PERCEPTION THAT MR DEL GIUDICE WAS DEMOTED SAYING HE CONTINUES TO FUNCTION AS A PARTTIME INVESTMENT BANKER BUT INDUSTRY EXECUTIVES SAY MR DEL GIUDICE FELL OUT OF FAVOR BECAUSE HE WAS RESPONSIBLE FOR HIRING A NUMBER OF CURRENT AND FORMER LAZARD EMPLOYEES WHOSE ACTIONS IN THE MUNICIPALBOND BUSINESS ARE UNDER INVESTIGATION AMONG THOSE WHOM MR DEL GIUDICE FIRST BROUGHT TO LAZARD WAS MARK FERBER THE FORMER HEAD OF LAZARD'S BOSTON OFFICE THE MASSACHUSETTS INSPECTOR GENERAL HAS ALLEGED THAT LAZARD AND MERRILL HAD A SECRET FEESPLITTING ARRANGEMENT THAT HELPED MERRILL WIN BUSINESS FROM A STATE AGENCY THAT LAZARD'S MR FERBER WAS ADVISING BOTH MERRILL AND MR FERBER HAVE DENIED WRONGDOING THEIR ACTIONS ARE BEING INVESTIGATED BY BOTH THE SECURITIES AND EXCHANGE COMMISSION AND THE US ATTORNEY'S OFFICE IN BOSTON LAZARD IS UNDER CLOSE SCRUTINY BY FEDERAL PROSECUTORS IN BOSTON WHO RECENTLY SENT SUBPOENAS TO ABOUT 50 OTHER CITIES INCLUDING LOS ANGELES CHICAGO AND INDIANAPOLIS WHERE LAZARD HAS ACTED AS AN ADVISER LAZARD ALSO IS BEING INVESTIGATED BY A FEDERAL GRAND JURY IN LOUISIANA IN CONNECTION WITH AN ALLEGEDLY SECRET COMMISSIONSPLITTING ARRANGEMENT THAT BENEFITED FIRST COMMONWEALTH SECURITIES A POLITICALLY CONNECTED FIRM BASED IN NEW ORLEANS LAZARD AND CS FIRST BOSTON INC WHICH COMANAGED A 600 MILLION BOND SALE ALLEGEDLY GAVE FIRST COMMONWEALTH ABOUT 240000 TO GET BUSINESS MR FERBER HAD NO ROLE IN THAT SALE AND LAZARD HAS DECLINED COMMENT ON THE MATTER FIRST COMMONWEALTH REPRESENTATIVES COULDN'T BE REACHED FOR COMMENT MEANWHILE A MERRILL SPOKESMAN CONFIRMED IT HAS REPLACED TWO OF THE THREE EXECUTIVES SUSPENDED PENDING THE COMPLETION OF A FEDERAL INQUIRY INTO THE SALE OF 29 BILLION IN NEW JERSEY TURNPIKE AUTHORITY BONDS THE THIRD EXECUTIVE'S DUTIES HAVE BEEN ASSUMED BY THE HEAD OF MERRILL'S MUNICIPALBOND DEPARTMENT DAVID ANDERSON HAS BEEN NAMED ACTING HEAD OF MERRILL'S MUNICIPALBOND SYNDICATE DESK SUCCEEDING DENNIS BOYLE JEFFREY HUMBER IS HEAD OF MERRILL'S MUNICIPAL BUSINESS IN THE NORTHEAST SUCCEEDING DENNIS BAUMRIN EDWARD SHERIDAN WHO HAS BEEN DIRECTOR OF MERRILL'S MUNICIPALMARKETS DIVISION SINCE MARCH 1992 HAS TAKEN OVER THE DUTIES PREVIOUSLY CARRIED OUT BY MARSHA EISENBERG HEAD OF MERRILL'S PUBLIC FINANCE GROUP MR BOYLE MR BAUMRIN AND MS EISENBERG REMAIN ON LEAVE AND MERRILL IS CONTINUING TO PAY THEIR LEGAL FEES FEDERAL PROSECUTORS IN MANHATTAN HAVE BEEN INVESTIGATING MERRILL'S NEW JERSEY DEALINGS SINCE LAST MAY LAZARD SEEMS TO HAVE BEEN HURT MUCH MORE THAN MERRILL AS A RESULT OF THE MUNICIPALBOND INQUIRIES ACCORDING TO THE BOND BUYER AN INDUSTRY PUBLICATION MERRILL WAS THE TOP SENIOR MANAGER OF TAXEXEMPT BONDS LAST YEAR DESPITE ITS INVOLVEMENT IN SEVERAL INVESTIGATIONS HOWEVER LAZARD ONE OF THE TOP 10 UNDERWRITERS IN 1992 SLIPPED IN RANK TO NO 51 LAST YEAR ACCORDING TO THE BOND BUYER LAZARD ALSO LOST ONE OF ITS MOST IMPORTANT MUNICIPALBOND BANKERS LAST WEEK FRANK STROM A QUANTITATIVE SPECIALIST JOINED AIG FINANCIAL PRODUCTS A UNIT OF NEW YORKBASED AMERICAN INTERNATIONAL GROUP INC THIS WEEK AND SEVERAL LAZARD BANKERS WHO WERE ONCE BIG PRODUCERS INCLUDING RICHARD POIRIER JR HAVE DONE LITTLE BUSINESS SINCE THE INVESTIGATIONS BEGAN ACCORDING TO LAZARD INSIDERS 9401200077 940120 WHO'S NEWS FIRST TENNESSEE NATIONAL CORP FIRST TENNESSEE NATIONAL CORP MEMPHIS TENN RALPH HORN 52 YEARS OLD WILL BECOME CHIEF EXECUTIVE OF THIS BANK HOLDING COMPANY APRIL 19 MR HORN HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER HE WILL RETAIN THE FORMER TITLE HE SUCCEEDS RONALD TERRY 63 WHO WILL REMAIN CHAIRMAN UNTIL DECEMBER 1995 MR TERRY HAS BEEN CHIEF EXECUTIVE FOR THE PAST 20 YEARS 9401200076 940120 LAW LEGAL BEAT INSURER FACING BOMB CLAIMS SEEKS TRADE CENTER'S SECURITY REPORTS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN INSURER FOR A WORLD TRADE CENTER TENANT IS INTENSIFYING EFFORTS TO AVOID LIABILITY ON THE GROUNDS THAT THE BUILDINGS' OPERATOR ALLEGEDLY IGNORED WARNINGS THAT THE COMPLEX WAS VULNERABLE TO TERRORIST ATTACK PHOENIX ASSURANCE CO OF NEW YORK IS SCHEDULED TO GO TO STATE COURT HERE TODAY TO SEEK INTERNAL REPORTS OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OPERATES THE WORLD TRADE CENTER PHOENIX CONTENDS IN A PENDING LAWSUIT THAT THE PORT AUTHORITY NEGLIGENTLY FAILED TO HEED WARNINGS IN SEVERAL SUCH REPORTS GOING BACK TO 1986 THAT LAX SECURITY LEFT IT OPEN TO JUST THE TYPE OF ATTACK THAT WAS CARRIED OUT ON FEB 26 1993 WITH A BOMB HIDDEN IN A VEHICLE IN THE COMPLEX'S UNDERGROUND PARKING GARAGE OVERALL INSURERS FACE AN ESTIMATED 510 MILLION IN PROPERTY CLAIMS STEMMING FROM THE FEBRUARY BOMBING BUT PHOENIX WHICH IS FACING AS MUCH AS 10 MILLION IN CLAIMS HAS MAINTAINED IN ITS LAWSUIT THAT IT SHOULDN'T HAVE TO PAY BECAUSE OF THE ALLEGED NEGLIGENCE OF THE PORT AUTHORITY AND OTHER INSURERS HAVE SAID THEY ARE LOOKING INTO TAKING A SIMILAR POSITION THE INSURERS' ARGUMENTS HOWEVER DEPEND LARGELY ON REPORTS THAT THEY HAVEN'T SEEN ALTHOUGH REPORTS OF THE WARNINGS AND RECOMMENDATIONS CAME TO LIGHT IN PUBLIC HEARINGS SHORTLY AFTER THE BOMBING THE PORT AUTHORITY HAS MAINTAINED THAT THE SECURITY PLANS ARE CONFIDENTIAL AND SHOULDN'T BE TURNED OVER AS PART OF THE LITIGATION NEW YORK STATE JUDGE WALTER M SCHACKMAN HAS SCHEDULED A HEARING FOR TODAY ON PHOENIX'S REQUEST FOR THE SECURITY DOCUMENTS IF THE JUDGE GRANTS PHOENIX'S MOTION TO COMPEL ACCESS TO THE REPORTS HE EFFECTIVELY WOULD CLEAR THE WAY FOR OTHER INSURERS TO USE THE DOCUMENTS IN SIMILAR SUITS THAT ARE EXPECTED AGAINST THE PORT AUTHORITY SAID BLAIR FENSTERSTOCK AN ATTORNEY FOR PHOENIX A UNIT OF SUN ALLIANCE GROUP PLC OF LONDON WE UNDERSTAND THAT THE REPORTS ANALYZED THE EFFECTIVENESS OF EXISTING SECURITY SYSTEMS AT THE WORLD TRADE CENTER AND MADE SPECIFIC RECOMMENDATIONS SAID MR FENSTERSTOCK OF THE NEW YORK OFFICE OF LAW FIRM SUTHERLAND ASBILL & BRENNAN PHOENIX HAD INSURED TELEPORT COMMUNICATIONS GROUP INC A TRADE CENTER TENANT THAT MAINTAINS PHONE SYSTEMS AND EQUIPMENT FOR THE PORT AUTHORITY FOR AS MUCH AS 10 MILLION IN PROPERTY DAMAGE AND LOSSES DUE TO BUSINESS INTERRUPTION THE INSURER IS NOW SEEKING THAT AMOUNT IN DAMAGES FROM THE PORT AUTHORITY MR FENSTERSTOCK SAID THAT THE INTERNAL SECURITY REPORTS WHICH WERE DISCUSSED IN TESTIMONY BEFORE A STATE LEGISLATIVE PANEL INVESTIGATING SECURITY AT THE COMPLEX MADE RECOMMENDATIONS SOME EASY AND INEXPENSIVE THAT COULD HAVE BEEN DONE TO INCREASE SECURITY HE SAID THE REPORTS FLAGGED THE CENTER'S UNDERGROUND PARKING GARAGE AS ONE OF ITS BIGGEST POINTS OF VULNERABILY TO TERRORIST ATTACK KNOWING THE RISK IN GENERAL AND IN SPECIFIC OF A POTENTIAL TERRORIST ATTACK THE PORT AUTHORITY DECLINED TO SPEND MONEY IN WAYS THAT COULD HAVE PROTECTED THE WORLD TRADE CENTER THE LAWYER SAID SEVERAL OTHER INSURERS HAVE FILED SUCH CLAIMS KNOWN AS SUBROGATION CLAIMS STEMMING FROM THE WORLD TRADE CENTER BOMBING SAID ALLEN MORRISON A SPOKESMAN FOR THE PORT AUTHORITY A QUASIGOVERMENTAL AGENCY INSURERS THAT HAVE NOTIFIED THE PORT AUTHORITY THAT THEY MIGHT MAKE SUCH CLAIMS HAVE UNTIL A YEAR AFTER THE BOMBING TO DO SO MR MORRISON SAID WE MAINTAIN THAT THE DOCUMENTS MUST REMAIN CONFIDENTIAL BECAUSE TO RELEASE THEM WOULD PUBLICLY DISPLAY THE VULNERABILITIES OF THE FACILITY WHICH ARE DISCUSSED IN DETAIL THE PORT AUTHORITY ALSO HAS SAID THAT IT WASN'T NEGLIGENT IN ITS RESPONSE TO THE RECOMMENDATIONS MR MORRISON SAID THE PORT AUTHORITY ADOPTED MOST OF THE SECURITY SUGGESTIONS BUT IT REJECTED A RECOMMENDATION THAT THE PUBLIC PARKING GARAGE BE CLOSED HE SAID THE PORT AUTHORITY BELIEVES THAT IT MADE THE CORRECT DECISION AT THE TIME BUT HAS DECIDED SINCE THE BOMBING THAT IT WON'T REOPEN THE GARAGE TO PUBLIC PARKING IN A RULING LAST MONTH JUDGE SCHACKMAN INSTRUCTED PHOENIX TO NARROW ITS REQUEST FOR THE SECURITY DOCUMENTS BUT DIDN'T ADDRESS WHETHER HE WOULD ORDER THEM TURNED OVER TO THE PORT AUTHORITY THE INSURER HAS SINCE ASKED THE PORT AUTHORITY FOR FOUR SPECIFIC REPORTS PLUS ANALYSES AND MEMOS IN RESPONSE TO THE REPORTS MR FENSTERSTOCK SAID JUDGE SCHACKMAN SAID IN HIS DECISION LAST MONTH THAT THE PORT AUTHORITY'S CONCERNS ABOUT CONFIDENTIALITY COULD BE SATISFIED WITH LESS DRASTIC MEASURES THAN BARRING ALL ACCESS TO THE DOCUMENTS FOR INSTANCE HE SAID PHOENIX COULD BE ORDERED TO KEEP THE DOCUMENTS CONFIDENTIAL ONE MIGHT ASK WHETHER IT IS APPROPRIATE TO OFFER A VICTIM OF A BOMBING A DAY IN COURT TO PROVE THAT A GOVERNMENTAL LANDLORD WAS LAX IN CARRYING OUT ITS DUTIES WHILE DENYING THE TENANT ACCESS TO THE DOCUMENTS AND THE TESTIMONY NEEDED TO ESTABLISH THE LAXITY JUDGE SCHACKMAN SAID IN THE OPINION SEPARATELY THE TRIAL AGAINST THE FOUR MEN ACCUSED OF CONSPIRACY IN THE TRADE CENTER ATTACK IS IN ITS 18TH WEEK IN FEDERAL COURT IN NEW YORK PROSECUTORS ARE EXPECTED TO FINISH PRESENTING EVIDENCE AS EARLY AS NEXT WEEK AND THE JURY IS LIKELY TO BEGIN DELIBERATING AFTER THE DEFENSE CONCLUDES ITS CASE SOMETIME IN FEBRUARY THE NEW YORK LAW FIRM SHEARMAN & STERLING MOVING AGGRESSIVELY TO OPEN A HONG KONG OFFICE HAS HIRED TWO PARTNERS AND AN ASSOCIATE FROM A COMPETING FIRM THE 553ATTORNEY FIRM DREW THE NEW LAWYERS FROM THE HONG KONG OFFICE OF LOS ANGELES LAW FIRM GIBSON DUNN & CRUTCHER MARK KESSEL SHEARMAN'S MANAGING PARTNER SAID THE PARTNERS ALBERT THEODORE POWERS AND CLARK T RANDT JR AND SIX OTHERS DESIGNATED FOR THE HONG KONG OFFICE WILL CONCENTRATE ON CORPORATE FINANCE FOREIGN INVESTMENT AND FINANCING THE COUNTRY'S INFRASTRUCTURE RON BEARD GIBSON DUNN'S MANAGING PARTNER SAID ITS OFFICE IN THE COLONY ALREADY HAS THREE NEW ATTORNEYS WE ARE NOT GOING TO CLOSE OUR HONG KONG OFFICE HE SAID AND THE FIRM MAY SOON ADD ONE OR TWO LAWYERS OTHER FIRMS ARE HASTENING TO HONG KONG AS WELL NEW YORK LAW FIRM DEBEVOISE & PLIMPTON WILL OPEN A SMALL OFFICE THERE THIS SPRING AND ANOTHER LARGE NEW YORK FIRM IS SAID TO HAVE SIMILAR PLANS IF YOU LOOK AT WHERE THE CLIENTS ARE AND WHERE THEY'RE PUTTING THEIR RESOURCES IT'S HONG KONG MR KESSEL SAID IT'S GOT THE INFRASTRUCTURE IT'S GOT THE LANGUAGE AND IT'S GOT THE JURIDICAL STRUCTURE THAT REALLY LENDS ITSELF TO THAT KIND OF BUSINESS SAID NED STILES MANAGING PARTNER OF NEW YORK LAW FIRM CLEARY GOTTLIEB STEEN & HAMILTON HONG KONG IS BECOMING OR HAS BECOME EVERYBODY'S BASE FOR THAT KIND OF WORK TOKYO IS TOO FAR AWAY AND TOO EXPENSIVE AND FOR LAWYERS BASICALLY TOO UNFRIENDLY HIS FIRM HAS TWO PARTNERS AND SEVERAL OTHER ATTORNEYS IN HONG KONG LAW FIRM PARTNERS SAY THEY'RE NOT WORRIED ABOUT WHAT WILL HAPPEN WHEN CHINA ASSUMES SOVEREIGNTY OF HONG KONG IN 1997 WE'RE CERTAINLY EXPECTING TO CONTINUE ON THE SAME SCALE WE HAVE NOW SAID ROBERT L BERNER JR A PARTNER IN THE CHICAGO FIRM BAKER & MCKENZIE WHICH HAS MORE THAN 100 ATTORNEYS THERE JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9401200075 940120 WHO'S NEWS TAPISTRON INTERNATIONAL INC TAPISTRON INTERNATIONAL INC RINGGOLD GA LARRY PIERCE 50 YEARS OLD WAS NAMED PRESIDENT OF THIS MAKER OF MACHINERY FOR THE CARPET INDUSTRY MR PIERCE HAD BEEN CHIEF OPERATING OFFICER THE PRESIDENT'S DUTIES HAD BEEN HANDLED BY LANIER M DAVENPORT CHAIRMAN AND CHIEF EXECUTIVE THE POST WAS MOST RECENTLY FILLED BY JOHN DEERY WHO RETIRED TWO YEARS AGO 9401200073 940120 SEVEN BIG BANKS HAD HIGHER NET IN 4TH QUARTER EARNINGS AT BANKAMERICA ROSE 49 AT PNC 19 NORWEST RESULTS SOARED A WALL STREET JOURNAL ROUNDUP SEVEN MORE LARGE BANKS REPORTED INCREASED FOURTHQUARTER EARNINGS AS LENDING ROSE AT MANY OF THE COMPANIES OFFSETTING A NARROWING OF NET INTEREST MARGINS LOANLOSS PROVISIONS FELL SHARPLY AT MANY BANKS BANKAMERICA CORP THE NATION'S SECOND LARGEST BANK HAD A 49 EARNINGS RISE OTHER PROFIT RISES WERE PNC BANK CORP 19 NORWEST CORP MORE THAN DOUBLE FLEET FINANCIAL GROUP INC 66 NBD BANCORP 63 AND REPUBLIC NEW YORK CORP 20 SHAWMUT NATIONAL CORP'S PROFIT ROSE 13FOLD THE EARNINGS GAINS WERE BASICALLY IN LINE WITH WALL STREET EXPECTATIONS AND THE MARKET AS HAS BEEN TYPICAL RECENTLY FOUND THE NEWS REASON TO TAKE PROFITS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BANKAMERICA COMMON STOCK FELL 1125 OR 24 TO CLOSE AT 4650 A SHARE PNC COMMON FELL 1 OR 34 TO 28125 FLEET PROVIDENCE RI FELL 625 CENTS OR 18 TO 3375 NBD FELL 125 CENTS TO 2925 AND SHAWMUT HARTFORD CONN FELL 75 CENTS OR 32 TO 22875 IN SPITE OF THE MARKET'S UNENTHUSIASTIC RESPONSE WALL STREET ANALYSTS FOUND REASONS TO BE HAPPY ABOUT THE REPORTS PARTICULARLY THE CONTINUED IMPROVEMENT IN ASSET QUALITY CREDIT QUALITY IS IMPROVING TO AN AMAZING EXTENT SAID CHRISTOPH M KOTOWSKI AN ANALYST WITH OPPENHEIMER & CO NONPERFORMING ASSETS AT PITTSBURGHBASED PNC FELL BY 67 MILLION DURING THE QUARTER TO 554 AT YEAR END NORWEST'S NONPERFORMING ASSETS DECLINED TO 235 MILLION FROM 325 MILLION A YEAR EARLIER DETROITBASED NBD'S NONPERFORMING PORTFOLIO WAS 269 MILLION AT YEAR END COMPARED WITH 352 MILLION A YEAR BEFORE THANKS TO CREDIT IMPROVEMENTS SEVERAL BANKS REPORTED SHARPLY LOWER CREDITLOSS PROVISIONS AT SAN FRANCISCOBASED BANKAMERICA THE PROVISION DROPPED TO 150 MILLION FROM 178 MILLION IN THE THIRD QUARTER REFLECTING NEW STABILITY IN THE STATE'S LONGDEPRESSED ECONOMY AND PROPERTY MARKETS AT MINNEAPOLISBASED NORWEST THE PROVISION DECLINED TO 40 MILLION FROM 112 MILLION A YEAR EARLIER MOST OF THE BANKS AS HAVE OTHERS CONTINUED TO REPORT A GRADUAL DECLINE IN NET INTEREST MARGINS OR THE DIFFERENCE BETWEEN A BANK'S COST OF CAPITAL AND THE RATE IT EARNS ON LOANS NORWEST'S MARGIN WAS 545 IN THE FOURTH QUARTER DOWN FROM 570 A YEAR EARLIER BUT FOR MOST BANKS HIGHER LOAN VOLUMES BOOSTED INTEREST INCOME AT PNC FOR EXAMPLE TOTAL LOANS CLIMBED 11 FROM A YEAR EARLIER MARGINS ARE COMING DOWN BUT LOAN GROWTH HAS BEEN BETTER THAN I EXPECTED IT WOULD BE MR KOTOWSKI SAID BANKAMERICA WAS AN EXCEPTION TO THE TREND ALTHOUGH AVERAGE LOANS OUTSTANDING ROSE TO 1248 BILLION FROM 1218 BILLION NET INTEREST INCOME DECLINED TO 186 BILLION DOWN 16 MILLION FROM THE THIRD QUARTER LARGELY BECAUSE OF THE DETERIORATION IN MARGIN WHICH FELL TO 466 DOWN EIGHT BASIS POINTS FROM THE THIRD QUARTER A BASIS POINT IS 1/100TH OF A PERCENTAGE POINT 9401200072 940120 PRESSURE ON SOUTH AFRICAN COMPANIES TO UNBUNDLE' HOLDINGS HAS WANED BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA INVESTMENT BANKERS AND INVESTORS EXPECTING TO REAP HUGE PROFITS AS SOUTH AFRICA'S GIANT CONGLOMERATES BREAK UP INTO SMALLER COMPANIES COULD BE IN FOR A DISAPPOINTMENT THAT'S BECAUSE THE BIG PRESSURE TO FORCE SOUTH AFRICA'S LARGEST COMPANIES TO SLIM DOWN WHICH WAS GAINING STRENGTH JUST A FEW MONTHS AGO HAS ABATED PARTLY BECAUSE OF A RIPROARING STOCK MARKET AMERICAN AND EUROPEAN INVESTMENT BANKERS HAVE BEEN SCRAMBLING TO SET UP SHOP IN SOUTH AFRICA SO THEY COULD AMONG OTHER THINGS MAKE HAY IN A MERGERSANDACQUISITIONS BOOM BUT THE BOOM THEY WERE EXPECTING WILL LIKELY BE POSTPONED UNTIL THE STOCK MARKET LIFTED PRICES OF SOME SOUTH AFRICAN STOCKS BY AS MUCH AS 50 SINCE NOVEMBER SOUTH AFRICA'S LARGEST CORPORATIONS HAD BEEN UNDER PRESSURE TO UNBUNDLE THEIR PYRAMID OF INTERLOCKING CORPORATE HOLDINGS BY SPINNING OFF COMPANIES THAT ARE UNRELATED TO THEIR CORE BUSINESS AND SELLING THEIR LARGE STAKES IN OTHERS MANY POLITICAL LEADERS ESPECIALLY BLACK LEADERS HAVE BEEN STRONG VOCAL ADVOCATES OF UNBUNDLING CONTENDING THAT BREAKING UP SOUTH AFRICA'S CONGLOMERATES WOULD HELP DIVERSIFY THE ECONOMY STIMULATE COMPETITION AND PROMOTE WIDER OWNERSHIP OF SOUTH AFRICAN ASSETS ALTHOUGH THE PRIME MOTIVE FOR UNBUNDLING IS A POLITICAL ONE SOME STOCK ANALYSTS QUICKLY JUMPED ON THE UNBUNDLING BANDWAGON THEY SAY UNBUNDLING WOULD ADD BADLY NEEDED LIQUIDITY TO THE JOHANNESBURG EXCHANGE WHILE BOOSTING STOCK PRICES WHICH FOR MANY COMPANIES WERE TRADING AT HUGE DISCOUNTS TO THEIR NETASSET VALUES SOUTH AFRICA'S 10 LARGEST CORPORATIONS THE UNBUNDLING ADVOCATES FREQUENTLY NOTED CONTROL 80 OF THE NATION'S MAJOR BUSINESS ACTIVITY THROUGH EITHER DIRECT OWNERSHIP OR PYRAMIDLIKE CROSSOWNERSHIP STRUCTURES FOR EXAMPLE GOLDMINING CONCERN ANGLO AMERICAN CORP WITH A MARKET CAPITALIZATION OF ABOUT 483 BILLION RAND 146 BILLION IS NOT ONLY THE BIGGEST COMPANY ON THE JOHANNESBURG STOCK EXCHANGE IT'S ALSO THE CONTROLLING SHAREHOLDER OF DIAMOND CARTEL LEADER DEBEERS CONSOLIDATED MINES LTD THE SECONDLARGEST COMPANY ON THE JOHANNESBURG EXCHANGE IN TURN DEBEERS OWNS SHARES IN FOOD CONCERN PREMIER GROUP HOLDINGS LTD ANOTHER COMPANY THAT IS CONTROLLED BY ANGLO AMERICAN THESE RELATIONSHIPS ARE SO DISLIKED BY POLITICIANS THAT SOME HAVE THREATENED TO INTRODUCE ANTITRUST LAWS TO FORCE THE COMPANIES TO SEPARATE ALTHOUGH POLITICAL LEADERS AND ECONOMISTS WILL LIKELY CONTINUE TO PUSH FOR UNBUNDLING MANY PEOPLE IN THE INVESTMENT COMMUNITY DOUBT THAT MANY COMPANIES WILL FREELY ADOPT THE STRATEGY AS A RESTRUCTURING METHOD THEY SAY THE SHARP RISE IN STOCK PRICES HAS CAUSED THE DISCOUNT THAT EXISTED ON MANY STOCKS TO DISAPPEAR OR NARROW ON THEIR OWN ELIMINATING ONE ARGUMENT FOR UNBUNDLING I THINK THE WHOLE CONCEPT OF UNBUNDLING HAS GONE BY THE WAYSIDE SAID PETER DAVEY DIRECTOR OF RESEARCH AT FRANKEL POLLACK VINDERINE IN JOHANNESBURG MOST ANALYSTS POINT TO THE UNBUNDLING OF GENCOR LTD WHICH HAS BEEN ONLY MODERATELY SUCCESSFUL IN ACHIEVING THE FINANCIAL RESULTS INVESTORS HAD EXPECTED GENCOR IS THE WORLD'S SECONDLARGEST MINING HOUSE AFTER ANGLO AMERICAN WITH A PREUNBUNDLING MARKET CAPITALIZATION OF 21 BILLION RAND LAST SUMMER GENCOR CHAIRMAN BRIAN GILBERTSON SAID THE COMPANY WOULD RELINQUISH CONTROL OF ITS NONMINING ASSETS TO GENCOR SHAREHOLDERS IN AN EFFORT TO UNLOCK SHAREHOLDER WEALTH AND IMPROVE OPERATING EFFICIENCY THE TRANSACTIONS WHICH REDUCED GENCOR'S ASSETS BY MORE THAN 1 BILLION RAND INVOLVED THE CONCERN DIVESTING ITSELF OF SAPPI LTD A PAPER AND PULP COMPANY ENGEN FORMERLY MOBIL OIL CO'S SOUTH AFRICAN OPERATION BEFORE MOBIL CORP WAS PRESSURED BY THE ANTIAPARTHEID MOVEMENT TO DIVEST ITSELF OF HOLDINGS IN 1989 MALBAK A FOOD AND ENGINEERING COMPANY THAT AMONG OTHER THINGS DISTRIBUTES PILLSBURY BRAND FOOD PRODUCTS IN AFRICA AND GENBEL AN INVESTMENT COMPANY PRIOR TO THE UNBUNDLING GENCOR'S STOCK WAS TRADING AT ABOUT 520 RAND A SHARE A DISCOUNT OF ABOUT 35 TO ITS NETASSET VALUE OF 8 RAND A SHARE EXCLUDING THE SUBSIDIARIES IT DIVESTED ITSELF OF INCLUDING THOSE SUBSIDIARIES GENCOR'S NETASSET VALUE WAS 13 RAND A SHARE ONE MONTH AFTER THE UNBUNDLING GENCOR'S STOCK IS TRADING AT ABOUT 860 RAND A SHARE A 14 DISCOUNT TO ITS NEW NETASSET VALUE OF 10 RAND A SHARE WHILE THAT'S A GOOD IMPROVEMENT IT'S NOT AS SIGNIFICANT AS SOME INVESTORS HAD HOPED OWEN RYAN A STOCK ANALYST AT JD ANDERSON & CO HERE SAID THE NARROWING IN GENCOR'S DISCOUNT IS A FUNCTION OF THE MARKET RUNNING HIGHER COMMODITY PRICES MOVING UP FOREIGN INVESTORS COMING IN AND A TURNAROUND IN EUROPE GENCOR'S UNBUNDLING MAY HAVE HAD SOMETHING TO DO WITH THE RISE IN THE STOCK PRICE BUT IT CERTAINLY WAS NOT THE MAJOR FACTOR WHAT ABOUT THE POLITICAL EFFECT OF GENCOR'S UNBUNDLING THE RESULTS HAVE BEEN MIXED THE STOCK OF GENCOR AND ITS FORMER SUBSIDIARIES ARE EASIER TO BUY AND SELL RESULTING IN GREATER TRADING LIQUIDITY FOR INVESTORS AND THE STOCKS ARE SLIGHTLY MORE WIDELY HELD BY THE PUBLIC FOREIGN AND EVEN SOME DOMESTIC INVESTORS ARE FAR MORE INTERESTED IN BUYING ANGLO AMERICAN SHARES THAN THEY ARE IN BUYING GENCOR STOCK ANGLO AMERICAN APPEALS TO A BROAD ARRAY OF INVESTORS WHO LIKE THE FACT THAT ITS INDUSTRY DIVERSITY MAKES IT A GOOD PROXY FOR THE ENTIRE SOUTH AFRICAN ECONOMY INDEED ANGLO AMERICAN STOCK MORE THAN DOUBLED LAST YEAR PARTLY BECAUSE OF A SHARP RISE IN GOLD AND AVID BUYING BY AMERICAN INVESTORS THE SHARP PRICE GAIN CAUSED THE DISCOUNT TO NETASSET VALUE ONCE AS HIGH AS 25 TO DISAPPEAR AS A RESULT IT IS EASIER FOR ANGLO AMERICAN TO DISMISS UNBUNDLING AS A RESTRUCTURING METHOD IT HAS REPEATEDLY ARGUED THAT SOUTH AFRICAN COMPANIES SHOULD NOT BE FORCED TO SLIM DOWN UNTIL THE GOVERNMENT LIFTS MONETARY EXCHANGE CONTROLS WHICH MAKE IT DIFFICULT FOR SOUTH AFRICANS TO INVEST OUTSIDE OF THE COUNTRY AS A RESULT MOST CORPORATIONS HERE HAVE BEEN USING THEIR PROFITS TO BUY OTHER COMPANIES OR TO INVEST IN THE STOCK MARKET RATHER THAN EXPAND INTERNATIONALLY AS MANY WOULD PREFER IT'S NO GOOD RESTRUCTURING IF YOU CAN'T INVEST THE PROCEEDS SAID MICHAEL SPICER AN ANGLO AMERICAN SPOKESMAN IF THE GOVERNMENT ELIMINATES EXCHANGE CONTROLS THEN WE MAY CONSIDER UNBUNDLING 9401200071 940120 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC COMPANY TO CUT 510 JOBS AT WEAPONSMAKING UNIT BRITISH AEROSPACE PLC SAID IT WILL CUT 510 JOBS FROM ITS WEAPONSMAKING UNIT DEFENSESPENDING CUTBACKS BY THE BRITISH AND THE US GOVERNMENTS MADE THE JOB CUTS NECESSARY THE COMPANY SAID VARIOUS ORDERS HAVE BEEN SHRUNK OR CANCELED RECENTLY THE MARKET FOR THE PRODUCTS HAS CONTINUED TO BE CHALLENGING A SPOKESWOMAN SAID SHE ADDED THAT THE DECISION TO TRIM STAFF WASN'T BASED ON THE LOSS OF A PARTICULAR CONTRACT BUT RATHER THE DIMINISHED DEMAND FOR THE MISSILES AND OTHER WEAPONS BRITISH AEROSPACE MAKES BRITISH AEROSPACE'S LOSTOCK PLANT IN ENGLAND WILL BEAR THE BRUNT OF THE CUTBACKS AS 330 OF THE 510 JOBS TO BE CUT ARE IN THAT PLANT 9401200070 940120 MARKETING & MEDIA MARKETSCAN M&M'S OVER ASPIRIN BY KATHLEEN DEVENY WAITING AROUND FOR YOUR PRESCRIPTION TO BE FILLED HOW ABOUT A CANDY BAR OR A NEW SHADE OF LIPSTICK DRUGSTORE SHOPPERS SPEND 40 MORE ON CANDY THAN THEY DO ON ANALGESICS ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THEY ALSO SPEND 45 MORE ON COSMETICS THAN THEY DO ON COLD OR FLU REMEDIES PURCHASES OF SUCH IMPULSE ITEMS ARE HIGH IN DRUGSTORES ACCORDING TO HEMANT K SHAH A DRUG ANALYST WITH HKS & CO AND A FORMER PHARMACIST BECAUSE SHOPPERS OFTEN WAIT 30 MINUTES FOR THEIR PRESCRIPTION CANDY IS AN ALLOCCASION PURCHASE MR SHAH SAYS YOU DON'T NEED TO WAIT UNTIL YOU HAVE A HEADACHE INFORMATION RESOURCES RANKED PRODUCT CATEGORIES IN US DRUGSTORES BY TOTAL DOLLAR SALES DURING THE 52 WEEKS ENDED DEC 5 COMPARED WITH THE YEAREARLIER PERIOD TOGETHER THE TOP 10 CATEGORIES ACCOUNT FOR 372 OF OVERTHECOUNTER DRUG AND GENERAL MERCHANDISE SALES INFORMATION RESOURCES DOESN'T TRACK PRESCRIPTION DRUG SALES WHICH ACCOUNT FOR 40 TO 50 OF TOTAL STORE REVENUE ALTHOUGH THE ROSTER OF TOPSELLING OVERTHECOUNTER DRUG AND GENERAL MERCHANDISE CATEGORIES CHANGES LITTLE FROM YEAR TO YEAR A FEW SHIFTS ARE NOTABLE SALES OF VITAMINS SOARED 106 COMPARED WITH THE PREVIOUS YEAR AFTER SEVERAL MEDICAL STUDIES LINKED CERTAIN VITAMINS TO LOWER INCIDENCE OF CANCER AND OTHER DISEASES SALES OF HOME DIAGNOSTIC KITS AND OTHER FIRSTAID PRODUCTS JUMPED 111 THANKS TO IMPROVING TECHNOLOGY AND AMERICANS' GROWING DESIRE TO GAIN MORE CONTROL OF THEIR OWN HEALTH CARE SOME OF THE DECLINES REFLECT A SHIFT IN SHOPPING HABITS BARGAINHUNTING CONSUMERS ARE BUYING MORE COSMETICS AT DEEPDISCOUNT DRUGSTORES AND MASS MERCHANDISERS HURTING DRUGSTORE SALES OF CONTACT LENS SOLUTIONS THE GROWING POPULARITY OF DISPOSABLE LENSES AND FIERCE PRICE COMPETITION FROM PRIVATELABEL RIVALS 9401200069 940120 WHAT'S NEWS BUSINESS AND FINANCE PFIZER REPORTED SURPRISINGLY WEAK EARNINGS AND SALES GROWTH FOR THE FOURTH QUARTER AN INDICATION THAT EVEN THE STRONGEST OF DRUG COMPANIES IS BEING OVERPOWERED BY UPHEAVAL IN THE HEALTHCARE INDUSTRY PROFIT GREW 36 AND SALES JUST 22 THE RESULTS SENT PFIZER'S SHARES DOWN 5 OR 74 TO 62875 AND SHOOK THE STOCKS OF THE ENTIRE PHARMACEUTICAL SECTOR SONY AND TIME WARNER'S RECORDING UNITS ARE LEADING TALKS AMONG THE INDUSTRY'S LARGEST PLAYERS ABOUT FORMING A WORLDWIDE TV MUSICVIDEO SERVICE DIGITAL EQUIPMENT POSTED A SURPRISE LOSS FOR ITS SECOND QUARTER ON A 12 REVENUE DECLINE RAISING THE PROSPECT OF MORE COSTCUTTING AND LAYOFFS THE FRAUD AT RETAILER PHARMOR WAS MORE ELABORATE THAN FIRST THOUGHT AND LOSSES FROM THE SCHEME TOTALED 1 BILLION DOUBLE PREVIOUS ESTIMATES A COURTAPPOINTED EXAMINER REPORTED THE FEDERAL RESERVE'S REGIONAL ECONOMIC SURVEY WAS MOSTLY OPTIMISTIC CITING STRONGER MANUFACTURING HOME CONSTRUCTION AND CONSUMER SPENDING ON BIGTICKET PURCHASES THE MERCHANDISE TRADE DEFICIT NARROWED IN NOVEMBER TO 1017 BILLION FROM OCTOBER'S RECORD 1090 BILLION AS IMPORTS AND EXPORTS DECLINED THE DOW INDUSTRIALS ROSE 1408 TO 388437 YET ANOTHER HIGH DESPITE A FLURRY OF DOWNBEAT PROFIT REPORTS THAT KEPT STOCKS LOWER MOST OF THE DAY AMR SAID ITS FOURTHQUARTER LOSS WIDENED MOSTLY BECAUSE THE FIVEDAY STRIKE BY FLIGHT ATTENDANTS AT ITS AMERICAN AIRLINES UNIT WAS MORE COSTLY THAN IT HAD INITIALLY FORECAST PENNZOIL SAID THE IRS PLANS TO SEEK 9565 MILLION IN TAXES AND INTEREST ON THE 3 BILLION SETTLEMENT THE COMPANY RECEIVED FROM TEXACO IN 1988 LAZARD FRERES AND MERRILL LYNCH HAVE MADE SIGNIFICANT CHANGES IN THE MANAGEMENT OF THEIR MUNICIPALBOND OPERATIONS IN THE WAKE OF A SERIES OF FEDERAL STATE AND LOCAL INQUIRIES ELEVEN OIL COMPANIES WERE PLACED UNDER REVIEW BY S&P FOR POSSIBLE RATINGS DOWNGRADES THE SLIDE IN CRUDE OIL PRICES TO FIVEYEAR LOWS HAS CAUSED INDUSTRY EARNINGS TO PLUNGE COLUMBIA GAS'S MAIN PIPELINE UNIT FILED A REORGANIZATION PLAN PROPOSING TO PAY 900 MILLION TO SETTLE CLAIMS BY NATURALGAS SUPPLIERS WHICH HAVE VALUED THE CLAIMS AT UP TO 13 BILLION UNITED TECHNOLOGIES PLANS TO ISSUE TWO SEPARATE CLASSES OF STOCK IN ITS AUTOMOTIVE UNIT HELPING IT TO RAISE GROSS PROCEEDS OF AS MUCH AS 830 MILLION BANKAMERICA PNC BANK NORWEST AND SEVERAL OTHER BIG BANKS POSTED FOURTHQUARTER EARNINGS INCREASES MICROSOFT POSTED SHARPLY HIGHER PROFIT FOR ITS SECOND QUARTER SEPARATELY IT SAID THE US PATENT OFFICE HAS OPENED THE WAY FOR THE COMPANY TO GAIN A TRADEMARK ON THE WORD WINDOWS WHEN USED TO DESCRIBE PERSONALCOMPUTER SOFTWARE PRODUCTS JAPANESE STOCKS RALLIED 28 AFTER OPTIMISM ABOUT IMMINENT APPROVAL OF POLITICAL REFORM PULLED GIANT INSTITUTIONAL INVESTORS INTO THE MARKET BUT AFTER TRADING ENDED WEDNESDAY TALKS BETWEEN JAPAN'S RULING COALITION AND THE OPPOSITION FELL APART BONDS LEHMAN BROTHERS TREASURY INDEX 558715 OFF 839 COMMODITIES OIL 1522 A BARREL UP 35 CENTS DOW JONES FUTURES INDEX 14208 OFF 010 SPOT INDEX 12960 OFF 066 DOLLAR 11135 YEN UP 060 17460 MARKS OFF 00005 9401200068 940120 GREAT BAY BANKSHARES BUYBACK DOVER NH GREAT BAY BANKSHARES INC BOUGHT BACK 5000 COMMON SHARES UNDER THE STOCK BUYBACK PROGRAM AUTHORIZED BY ITS BOARD IN OCTOBER IN A NEWS RELEASE THE COMPANY SAID A TOTAL OF 75000 SHARES HAS BEEN BOUGHT UNDER THE CURRENT PROGRAM AT A WEIGHTED AVERAGE PRICE OF 1211 A SHARE A SPOKESMAN SAID THE COMPANY MAY BUY BACK AN ADDITIONAL 196255 COMMON SHARES ACCORDING TO THE STOCK BUYBACK PROGRAM GREAT BAY'S STOCK CLOSED YESTERDAY AT 12625 A SHARE UP 375 CENTS ON THE NASDAQ STOCK MARKET 9401200067 940120 3COM AGREES TO BUY CENTRUM SANTA CLARA CALIF COMPUTER CONCERN 3COM CORP SAID IT AGREED TO ACQUIRE CENTRUM COMMUNICATIONS INC FOR 36 MILLION CENTRUM BASED IN SAN JOSE CALIF MAKES REMOTE ACCESS SERVERS THAT ENABLE USERS TO TAP INTO THEIR OFFICE COMPUTERS FROM OTHER LOCATIONS THROUGH PERSONAL COMPUTERS CENTRUM'S PRODUCTS COMPRISE HARDWARE INSTALLED IN THE OFFICE AND SOFTWARE INSTALLED IN THE USER'S PC AND 3COM MAKES DEVICES FOR COMPUTERDATA NETWORKS 9401200066 940120 CHICAGO MERCANTILE EXCHANGE CHICAGO CHICAGO MERCANTILE EXCHANGE'S CHAIRMAN JOHN F SANDNER WAS ELECTED TO A NEW TWOYEAR TERM MR SANDNER WHO RAN UNOPPOSED FOR THE ELECTED POST OF CHAIRMAN HAS NOW SERVED LONGER THAN ANY OTHER CHAIRMAN OF THE CME I INTEND TO DO EVERYTHING POSSIBLE TO CREATE NEW GROWTH AND PROFIT OPPORTUNITIES FOR THE MEMBERS OF THE CME MR SANDNER SAID MR SANDNER ALSO IS CHAIRMAN OF GLOBEX CORP WHICH RUNS A 24HOUR FUTURES TRADING NETWORK IN A PARTNERSHIP WITH REUTERS HOLDINGS PLC AND THE CHICAGO BOARD OF TRADE 9401200065 940120 PRU'S LATEST OFFER OF SETTLEMENT SEEN WINNING CLEARANCE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL THE ONCE VOCAL OPPOSITION TO A PROPOSED ENERGYPARTNERSHIP SETTLEMENT BY PRUDENTIAL SECURITIES INC HAS PETERED OUT AT A FAIRNESS HEARING IN A NEW ORLEANS FEDERAL COURT YESTERDAY EVEN PLAINTIFFS' LAWYERS WHO HAD STAUNCHLY OPPOSED AN EARLIER PROPOSED SETTLEMENT IN THE CLASSACTION CASE RALLIED BEHIND PRUDENTIAL'S LATEST SETTLEMENT OFFER OF 120 MILLION IN CASH PRUDENTIAL'S ORIGINAL SETTLEMENT PLAN FOR 37 MILLION IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM WAS WITHDRAWN WE CONCUR WITH PRUDENTIAL ATTORNEYS NOW THAT THIS IS A FAIR ADEQUATE AND REASONABLE SETTLEMENT GEORGE RIESS A PLAINTIFFS' LAWYER TOLD FEDERAL JUDGE MARCEL LIVAUDAIS JR MR RIESS WHO REPRESENTS ABOUT 150 INVESTORS HAD BEEN A LEADING OBJECTOR TO THE PREVIOUS SETTLEMENT OFFER BY PRUDENTIAL IN THE CASE ABOUT 130000 INVESTORS HAVE ACCUSED THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT OF MISLEADING THEM ON THE RISKS AND RETURNS OF ABOUT 145 BILLION IN 35 ENERGY PARTNERSHIPS WHICH HAVE LOST ABOUT HALF THEIR VALUE THANKS TO THE INCREASING SUPPORT OF THE ACCORD IT'S WIDELY EXPECTED THAT JUDGE LIVAUDAIS WILL APPROVE THE SETTLEMENT AFTER THE THREEDAY FAIRNESS HEARING WHICH ENDS TOMORROW EVEN LAWYERS WITH MANY CLIENTS WHO HAVE CHOSEN TO OPT OUT OF THE SETTLEMENT AREN'T OPENLY OPPOSING THE PRUDENTIAL ACCORD SOME OF THE PEOPLE WE COUNSELED JUST FLAT WANT IT OVER THEY'RE WILLING TO TAKE WHAT WE VIEW AS A CUT TO CONCLUDE IT SAYS GEORGE FLEMING OF FLEMING HOVENKAMP & GRAYSON 2000 OF THE HOUSTON LAW FIRM'S 7000 CLIENTS IN THE CASE HAVE DECIDED TO REMAIN PART OF THE CLASS NEARLY 16000 OF THE 130000 ENERGYPARTNERSHIP INVESTORS HAVE DECIDED TO OPT OUT OF THE SETTLEMENT ACCORDING TO EDWARD GROSSMAN A LAWYER IN NEW YORK FOR THE CLASS THOSE WHO OPT OUT CAN FILE A PRIVATE ARBITRATION OR COURT CASE OR FILE A CLAIM TO TAP INTO A 330 MILLION REPARATIONS FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS ONE PROMINENT OBJECTOR TO THE ACCORD REMAINS STEADFAST STUART GOLDBERG A LAWYER IN AUSTIN TEXAS SAID INVESTORS OUGHT TO RECEIVE 780 MILLION THE CENTRAL ISSUE IS THAT THE PROSPECTUSES FAILED TO DISCLOSE THAT THIS IS A COMMODITY FUNDNOT AN INCOME FUND SAID MR GOLDBERG WHO REPRESENTS MORE THAN 100 INVESTORS MR GOLDBERG DID A VERY CAPABLE JOB BUT HE DIDN'T GIVE A REASON WHY THIS SETTLEMENT SHOULD BE KNOCKED OUT SAID CLINTON KRISLOV A LAWYER IN CHICAGO WHO HAD OPPOSED THE EARLIER PRUDENTIAL SETTLEMENT OFFER BUT ENDORSES THE CURRENT ONE 9401200064 940120 INTERNATIONAL COLIN ENERGY WELL CALGARY ALBERTA INTERNATIONAL COLIN ENERGY CORP SAID A RECENT GAS DISCOVERY IN NORTHEASTERN BRITISH COLUMBIA TESTED AT 16 MILLION CUBIC FEET A DAY THE OIL AND GAS PRODUCER SAID THE DISCOVERY WELL IN WHICH IT HOLDS A 73 INTEREST COST 16 MILLION CANADIAN DOLLARS US12 MILLION TO DRILL THE COMPANY SAID IT HAS APPLIED FOR A PIPELINE PERMIT AND HOPES TO BEGIN CONSTRUCTION WITHIN TWO WEEKS AND THAT IT PLANS TO CONNECT THE WELL TO BRITISH COLUMBIA'S GAS TRANSPORTATION NETWORK BY THE END OF MARCH INTERNATIONAL COLIN SAID IT PLANS TO DRILL AS MANY AS THREE MORE WELLS IN THE ADSETT AREA OF BRITISH COLUMBIA NEAR THE NEW DISCOVERY WELL AND THAT IT PLANS TO BUY MORE LAND THERE 9401200062 940120 INTERNATIONAL US CHINA SEEM CLOSE TO ACCORD ON HUMAN RIGHTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING THE US AND CHINA APPEAR CLOSE TO RESOLVING A HUMANRIGHTS DISPUTE WITH AN AGREEMENT THAT WILL MAKE IT EASIER FOR AMERICAN INSPECTORS TO VISIT SUSPECTED PRISONLABOR SITES IN CHINA THE AGREEMENT DETAILS OF WHICH ARE STILL BEING NEGOTIATED WOULD MEET ONE OF THE US CONDITIONS THAT CHINA MUST SATISFY TO WIN A CONTINUATION OF ITS MOST FAVORED NATION TRADE STATUS TREASURY SECRETARY LLOYD BENTSEN HOPES TO BE ABLE TO ANNOUNCE A SATISFACTORY CONCLUSION OF THE TALKS BEFORE HE LEAVES HERE TOMORROW I'M MAKING IT CLEAR THAT PROGRESS ON HUMAN RIGHTS IS BASIC TO OUR RELATIONSHIP MR BENTSEN SAID AFTER A MEETING WITH CHINESE PREMIER LI PENG YESTERDAY MR BENTSEN THE HIGHESTRANKING CLINTON ADMINISTRATION OFFICIAL TO VISIT CHINA IS HERE TO IMPROVE TRADE AND ECONOMIC RELATIONS WITH THE RAPIDLY DEVELOPING COUNTRY THE EXPECTED ACCORD DEMONSTRATES THAT BOTH WASHINGTON AND BEIJING ARE DETERMINED TO EXPAND THEIR BENEFICIAL AND PROFITABLE DEALINGS MR BENTSEN ANNOUNCED THAT THE US WILL REVIVE THE JOINT ECONOMIC COMMITTEE A FORUM THAT WASHINGTON STOPPED AFTER THE CHINESE MILITARY SUPPRESSED A PRODEMOCRACY DEMONSTRATION IN TIANANMEN SQUARE IN 1989 THROUGH THE COMMITTEE THE US WILL PROVIDE CHINA WITH TECHNICAL ASSISTANCE IN FISCAL MONETARY AND OTHER ISSUES WHILE CONTINUING DISCUSSIONS ON INVESTMENT TRADE AND INCREASED US ACCESS TO CHINESE MARKETS IN PARTICULAR THE US WANTS TO WIN GREATER OPPORTUNITIES FOR US BANKS AND BROKERS IN CHINA LAST YEAR PRESIDENT CLINTON ISSUED AN EXECUTIVE ORDER MAKING THE CONTINUATION OF CHINA'S MOST FAVORED NATION STATUS WHICH GIVES IT THE SAME TRADE TERMS THAT MOST OTHER NATIONS HAVE WITH THE US CONTINGENT ON IMPROVEMENT IN ITS HUMANRIGHTS RECORD THE TWO FIRM CONDITIONS FOR EXTENDING MFN BEYOND JULY 3 INVOLVE FREE EMIGRATION AND US INSPECTIONS OF SUSPECTED PRISONLABOR CAMPS IN ADDITION CHINA MUST SHOW SIGNIFICANT PROGRESS ON SUCH ISSUES AS THE HUMANE TREATMENT OF PRISONERS RELEASING CERTAIN POLITICAL AND RELIGIOUS PRISONERS AND PROTECTING TIBET'S RELIGIOUS HERITAGE IN SEPTEMBER CUSTOMS COMMISSIONER GEORGE WEISE TOLD CONGRESS THAT CHINA HAS GRANTED ONLY ONE IN FIVE US REQUESTS TO INSPECT SUSPECTED PRISONLABOR FACILITIES THE EXPECTED AGREEMENT WOULD ALLOW INCREASED ACCESS BY US CUSTOMS OFFICIALS THE US DOESN'T ALLOW THE IMPORT OF PRODUCTS MADE WITH PRISON LABOR RELATIONS BETWEEN THE CLINTON ADMINISTRATION AND CHINA GOT OFF TO A FROSTY START BECAUSE OF MR CLINTON'S FOCUS ON HUMAN RIGHTS DURING HIS PRESIDENTIAL CAMPAIGN IN THE LAST YEAR OR SO HOWEVER THE ADMINISTRATION HAS MADE A CONCERTED EFFORT TO ENGAGE CHINA ON A RANGE OF ISSUES OPERATING ON THE THEORY THAT IT'S EASIER TO INFLUENCE A FRIEND THAN AN ADVERSARY 9401200061 940120 BUSINESS BRIEF FRANKLIN RESOURCES INC PROFIT EXCEEDING ESTIMATE TO BE REPORTED FOR QUARTER FRANKLIN RESOURCES INC SAID IT EXPECTS TO REPORT EARNINGS OF BETWEEN 56 MILLION AND 575 MILLION FOR THE QUARTER ENDED DEC 31 OUTSTRIPPING WALL STREET'S CONSENSUS ESTIMATE THE MONEYMANAGEMENT FIRM IN SAN MATEO CALIF RELEASED THE FISCAL FIRSTQUARTER EARNINGS RANGE WHICH IS EQUAL TO BETWEEN 68 CENTS A SHARE AND 70 CENTS A SHARE AT ITS ANNUAL SHAREHOLDERS' MEETING YESTERDAY IN THE YEARAGO PERIOD IT EARNED 348 MILLION OR 43 CENTS A SHARE ON REVENUE OF 1367 MILLION ANALYSTS HAD EXPECTED THE COMPANY TO EARN 61 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN NEW YORK STOCK EXCHANGE LATE TRADING THE COMPANY'S STOCK CLOSED AT 42875 A SHARE UP 2625 OR 65 9401200060 940120 POLITICS & PEOPLE STAKES WILL BE HUGE IN THE HOUSE ELECTIONS BY ALBERT R HUNT AT AN OFTDELAYED WHITE HOUSE MEETING RIGHT BEFORE CHRISTMAS THE HOUSE DEMOCRATIC LEADERS WERE DIRECT WITH PRESIDENT CLINTON WORKING CONTROL OF CONGRESS MAY WELL DISAPPEAR WITH THIS YEAR'S ELECTIONS THEY CITED MORE THAN A HALFDOZEN MAJOR VOTES DURING 1993 INCLUDING CRITICAL BUDGET AND SPENDING TALLIES AS WELL AS OTHER KEY MEASURES SUCH AS OVERHAULING THE CAMPAIGN FINANCE LAWS A SWITCH OF LESS THAN 10 VOTES WOULD HAVE CHANGED THE OUTCOME IN EACH THEY THEN TOSSED IN A FEW MORE BILLS AND A SWITCH OF 18 VOTES WOULD HAVE WIPED OUT MOST OF THE PRESIDENT'S LEGISLATIVE ACHIEVEMENTS BILL CLINTON WHO TOOK COPIOUS NOTES WAS IMPRESSED AT THE END HE AGREED TO RAISE 2 MILLION FOR HOUSE DEMOCRATIC CANDIDATES THIS YEAR THIS IS ALMOST FOUR TIMES AS MUCH AS THE CLINTONGORE TEAM RAISED FOR THESE CANDIDATES IN 1992 IN 1994 THE STAKES IN THE HOUSE ELECTIONS ARE HUGE AN EVEN AVERAGE SHOWING BY REPUBLICANS COULD REVIVE THE DOMINANCE OF THE OLD GOPCONSERVATIVE DEMOCRATIC COALITION MORE IMPORTANT IF THE REPUBLICANS ADD TWODOZEN SEATS IT WILL MAKE ACTUAL GOP CONTROL OF THE HOUSE A DISTINCT POSSIBILITY EITHER TWO OR FOUR YEARS LATER MANY OF THE 34 SENATE RACES AND 36 GUBERNATORIAL ELECTIONS AS USUAL WILL CAPTURE MOST OF THE POLITICAL ATTENTION BUT THE CLASH FOR THE HOUSE IS THE MOST CRITICAL BATTLEFIELD IN 1994 THE DIFFERENCE BETWEEN A MEDIOCRE AND A SPECTACULAR SHOWING MAY REST IN PART ON HOW THE CURRENT HOUSE REPUBLICANS PRESENT THEMSELVES IN THIS SURETOBETURBULENT POLITICAL YEAR ACCORDINGLY THE MOST PIVOTAL REPUBLICAN IN THE LAND TODAY IS NOT BOB DOLE OR ANY GOP PRESIDENTIAL HOPEFUL IT IS THE HOUSE WHIP AND NEXT HOUSE GOP LEADER NEWT GINGRICH NEWT IS THE MOST IMPORTANT REPUBLICAN IN THE COUNTRY FOR THE NEXT 18 MONTHS SAYS FORMER HOUSE REPUBLICAN VIN WEBER WE'LL PICK UP SOMEWHERE BETWEEN 10 AND 50 SEATS REP GINGRICH PREDICTS THAT WILL DEPEND HE BELIEVES ON HOW BILL CLINTON DOES THIS YEAR AND WHETHER THE ECONOMY STAYS IN GOOD SHAPE FACTORS BEYOND HIS CONTROL AND HOW THE CONGRESSIONAL REPUBLICANS PERFORM WHICH DECIDEDLY IS IN HIS CONTROL THE GEORGIA REPUBLICAN MAKES NO SECRET THAT HE'LL BE A NOHOLDSBARRED FOE TOMORROW HE PLANS TO CHALLENGE THE PRESIDENT TO CONVENE A SPECIAL 60DAY CONGRESSIONAL SESSION TO DEAL SERIOUSLY WITH CRIME BEFORE EVEN CONSIDERING HEALTH CARE AND OTHER LEGISLATION MR GINGRICH AND HIS COLLEAGUES HAVE A WAY TO GO WITH THE PUBLIC VOTERS IN THIS WEEK'S WALL STREET JOURNAL/NBC NEWS POLL BY 34 TO 29 SAY THEY'RE MORE LIKELY TO VOTE FOR DEMOCRATIC CONGRESSIONAL CANDIDATES BUT THE POLL ALSO SHOWS OPPORTUNITIES BY 56 TO 33 THE PUBLIC NOW THINKS IT'S BETTER IF CONGRESS AND THE PRESIDENCY ARE CONTROLLED BY DIFFERENT PARTIES TRADITIONALLY THE PARTY CONTROLLING THE WHITE HOUSE SUFFERS SETBACKS IN MIDTERM ELECTIONS DATING BACK TO HARRY TRUMAN IN THE FIRST OFFYEAR ELECTIONS OF A PRESIDENT'S TERM THE OPPOSITION PARTY HAS GAINED AN AVERAGE OF MORE THAN TWODOZEN SEATS THE DEMOCRATS CURRENTLY ENJOY A 259TO176 MARGIN SO IF THE GOP GAINS TWODOZEN SEATS THAT WOULD BRING THEM TO 200 OR MORE SEATS THAN ANYTIME SINCE 1956 THE REPUBLICANS SEEMINGLY HAVE TWO OTHER ADVANTAGES THE HUGE 114MEMBER FRESHMAN CLASS ABOUT 60 DEMOCRATIC HAS HAD LESS TIME TO SOLIDIFY THE ADVANTAGES OF INCUMBENCY THIRTYONE OF THOSE DEMOCRATIC NEWCOMERS WON BY 55 OR LESS IN 1992 INDICATING THOSE DISTRICTS ARE VERY COMPETITIVE MOREOVER ALREADY 31 HOUSE MEMBERS HAVE RETIRED THIS YEAR AND THERE MAY BE A DOZEN OR TWO MORE ALSO GIVING THE GOP DISPROPORTIONATE OPPORTUNITIES IN THESE OPEN SEATS REP GINGRICH AND OTHER REPUBLICANS ALSO BELIEVE SOME KEY ISSUES WILL CUT THEIR WAY SOME LEADING PARTY STRATEGISTS THINK THAT WHILE HEALTH CARE MAY END UP A POLITICAL PLUS FOR THE PRESIDENT IT'S MORE LIKELY TO HELP REPUBLICAN CONGRESSIONAL CANDIDATES THIS YEAR AS VOTERS ANGRY ABOUT ANY CHANGES WILL TURN OUT BUT ANY BENEFITS WON'T BE APPARENT UNTIL LATER BUT MAJOR REPUBLICAN STRIDES WON'T BE EASY GOP POLLSTER ROBERT TEETER REMEMBERS HOW TOUGH IT WAS TO DEFEAT FRESHMAN DEMOCRATS FROM THE HUGE WATERGATE CLASS OF 1974 SOMETIMES FIRSTTERMERS ARE ACTUALLY SAFER BECAUSE THEY WORK HARDER AND DREAMS THAT THE DIVISIVE FIGHT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD CAUSE SIZABLE PROBLEMS WITH UNIONS ARE FADING LABOR HAS TOLD DEMOCRATIC POLITICIANS PRIVATELY THAT WHILE IT WILL PROBABLY OPPOSE A COUPLE OF PRONAFTA DEMOCRATS IT WANTS TO NORMALIZE ITS CLOSE TIES TO MOST OF THE PARTY FURTHER THE SINGLE MOST IMPORTANT ISSUE IN MOST NONPRESIDENTIAL ELECTIONS IS NOT SURPRISINGLY THE ECONOMY AND TODAY THAT LOOKS LIKE A WINNER FOR THE DEMOCRATS THIS IS ONE OF THE FEW TIMES THAT AN OFFYEAR ELECTION WILL BE HELD IN A RECOVERING ECONOMY NOTES DEMOCRATIC POLLSTER PETER HART THE POLITICALLY ASTUTE NEWT GINGRICH REALIZES THIS AND KNOWS HE MUST POSITION REPUBLICANS ARTFULLY THIS YEAR IF IT'S REPUBLICANS OPPOSING WE WILL ONLY GAIN THE MINIMUM SEATS HE ACKNOWLEDGES IF IT'S REPUBLICAN ALTERNATIVES WE'LL DOUBLE OR TRIPLE THAT HE THEREFORE HAS LITTLE USE FOR ASSERTIONS BY SOME PROMINENT REPUBLICANS THAT THE GOP LINE ON HEALTH CARE SHOULD BE THAT THERE IS NO CRISIS I WISH PEOPLE WHO SAY THAT WOULD GO TALK AT RANDOM TO ANY 10 SMALLBUSINESS PEOPLE IN AMERICA THAT DOESN'T MEAN HOWEVER THAT MR GINGRICH WILL HELP THE PRESIDENT GET A HEALTH CARE OVERHAUL PASSED THE ONLY QUESTION IS HOW BEST TO FRAME ALTERNATIVES THAT WILL KILL OR EVEN BETTER EMBARRASS THE CLINTON INITIATIVE ALMOST EVERYONE WHO SPENDS ANY TIME WITH MR GINGRICH APPRECIATES HIS BRILLIANT MIND AND POLITICAL DEXTERITY EVEN SOME FRIENDS HOWEVER WORRY ABOUT PERSONAL FLAWS CHARACTER ASSASSINATION LINKING DEMOCRATS TO WOODY ALLEN IN 1992 FOR INSTANCE HAS BEEN A TOOFREQUENT GINGRICH TACTIC AND HIS PLANS TO TARGET HOUSE SPEAKER TOM FOLEY'S OPPOSITION TO TERM LIMITS ARE DISINGENUOUS THE EIGHTTERM GEORGIA REPUBLICAN HAS NO INTEREST IN TERM LIMITS FOR HIMSELF IT'S REALLY A REACH WHEN HE SUGGESTS THAT THE CLINTONS' ETHICS ARE NIXONISH BUT THE GEORGIA REPUBLICAN CAN TASTE THE PROSPECTS OF EXERCISING REAL POWER IN THE HOUSE AND HE DOESN'T PLAN TO BLOW IT AND HE HAS A CATCHY CAMPAIGN THEME THAT SHOULD GIVE THE DEMOCRATS FITS DO YOU THINK 40 YEARS IS LONG ENOUGH 9401200059 940120 MCDONNELL REPORTS FOURTHQUARTER LOSS OF 132 MILLION CHARGE FOR C17 CITED BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP REPORTED A FOURTHQUARTER NET LOSS AFTER A 450 MILLION PRETAX CHARGE RELATING TO ITS C17 MILITARYTRANSPORT JET BUT THE COMPANY SAID OPERATING RESULTS IMPROVED THE LOSS REFLECTING A CHARGE THAT HAD BEEN EXPECTED UNDER TERMS OF A RECENT PENTAGON SETTLEMENT ALLOWING PRODUCTION OF THE PLANE TO PROCEED AMOUNTED TO 132 MILLION OR 366 A SHARE A YEAR EARLIER PROFIT TOTALED 762 MILLION OR 1946 A SHARE AFTER A RETIREE HEALTHCARERELATED GAIN EXCLUDING THE C17 CHARGE AND THE YEAREARLIER GAIN ONCETROUBLED MCDONNELL DOUGLAS'S FOURTHQUARTER EARNINGS WOULD HAVE TOTALED 143 MILLION OR 363 A SHARE COMPARED WITH 86 MILLION OR 220 PER SHARE A YEAR EARLIER HOWEVER THE ST LOUIS COMPANY'S COMMERCIALAIRPLANE BUSINESS IS STILL MIRED IN THE INDUSTRY'S CURRENT DOWNTURN REVENUE IN THE QUARTER PLUNGED 21 TO 363 BILLION FROM 462 BILLION FOR ALL OF 1993 MCDONNELL DOUGLAS HAD NET INCOME OF 396 MILLION OR 1010 A SHARE VS A YEAREARLIER LOSS OF 781 MILLION OR 2010 A SHARE ANNUAL REVENUE FELL 17 TO 1449 BILLION FROM 1737 BILLION THE COMPANY'S STOCK FELL 1125 OR 1 TO CLOSE AT 112375 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HERBERT LANESE THE COMPANY'S CHIEF FINANCIAL OFFICER TOLD REPORTERS AFTER THE RESULTS WERE ANNOUNCED THAT ACCOMPLISHMENTS OF THE LAST YEAR REESTABLISHED OURSELVES AND GIVE US TIME TO GROW WITH THE COMPANY STABILIZED MR LANESE SAID DIRECTORS WILL CONTEMPLATE RAISING THE 35CENT QUARTERLY DIVIDEND AT A MEETING LATER THIS MONTH HE ALSO SAID THE COMPANY WILL LOOK SERIOUSLY AT A STOCK BUYBACK ALTHOUGH IT MAY PROVE MORE WORTHWHILE TO SHAREHOLDERS FOR THE COMPANY TO REINVEST IN BUSINESSES THAT OFFER STRONG PROSPECTS FOR TRADE SUCH AS FIGHTER JETS AND THE C17 MILITARY TRANSPORT MCDONNELL DOUGLAS HAD SAID IN LATE OCTOBER THAT IT MIGHT INCUR THE C17 CHARGE WHICH IN AFTERTAX TERMS WAS 275 MILLION OR 699 A SHARE THE CHARGE RESULTED FROM A SETTLEMENT WITH THE GOVERNMENT THAT ALLOWED 40 C17S TO CONTINUE TO BE BUILT AS A RESULT MCDONNELL DROPPED MORE THAN 16 BILLION IN CLAIMS FOR COSTS RELATED TO THE PROGRAM SOME OF WHICH IT HAD COUNTED ON RECOVERING FROM THE GOVERNMENT IN LARGE PART THE CHARGE COVERS NEW INVESTMENT THAT MCDONNELL HAS AGREED TO MAKE IN THE C17 PROGRAM FOR EXAMPLE THE COMPANY HAS AGREED TO PAY FOR ITS SHARE OF A FLIGHTTEST EXTENSION NEW DESIGN SYSTEMS COSTMONITORING PROGRAMS AND A COSTREDUCTION PROGRAM MR LANESE SAID THE CHARGE WAS PARTIALLY OFFSET BY GAINS IN 1993 OF 220 MILLION OR 561 A SHARE FROM THE SALE OF AN INFORMATIONSYSTEMS UNIT RESOLUTION OF A TAX MATTER AND REVERSAL OF PART OF A ONETIME CHARGE TAKEN IN 1992 TO MEET NEW HEALTHCARE ACCOUNTING STANDARDS A YEAR AGO AFTER SEVERAL YEARS OF DISAPPOINTING FINANCIAL PERFORMANCE BY THE COMPANY MR LANESE VOWED TO MEET A SERIES OF AGGRESSIVE FINANCIAL TARGETS FOR IMPROVING PROFITS AND CASH FLOW CUTTING DEBT AND RESURRECTING MCDONNELL DOUGLAS'S LOWERED CREDIT RATINGS AMONG THE GAINS IN THE PAST YEAR HAS BEEN A REDUCTION OF CORPORATE AEROSPACERELATED DEBT TO 163 BILLION AT YEAR END FROM 277 BILLION AT THE END OF 1992 STRENGTHENED OPERATIONS INCLUDE THOSE MAKING F/A18 AND F15 FIGHTER AIRCRAFT THE COMPANY HOPES TO WIN A COMPETITION WITHIN THE NEXT MONTH IN WHICH IT IS TRYING TO GET A 2 BILLION ORDER FOR F15S FROM ISRAEL FOR NOW THE OUTLOOK IS BLEAK FOR THE COMPANY'S DOUGLAS AIRCRAFT CO COMMERCIALAIRPLANE BUSINESS IN LONG BEACH CALIF WHILE THE UNIT HAS BEEN SLIGHTLY PROFITABLE MR LANESE SAID IT IS LIKELY TO DELIVER ONLY THREE OR FOUR JETLINERS IN THE FIRST QUARTER THE REST OF 1994 WILL SHOW IMPROVEMENT HE SAID BUT 1995 AND 1996 COULD PROVE VERY DIFFICULT YEARS FOR THE OPERATION IF ORDERS DON'T IMPROVE ONE BRIGHT PROSPECT FOR THE COMMERCIALAIRPLANE UNIT COMES FROM WIDESPREAD REPORTS THAT IT IS FAVORED TO WIN ORDERS FOR MORE THAN 20 SMALLER MD90 MODELS WHEN THE SAUDI ARABIAN STATERUN CARRIER SAUDIA PLACES A LARGE ORDER FOR MANY SIZES OF JETLINERS 9401200058 940120 BUSINESS BRIEF HAGGAR CORP WRINKLERESISTANT CLOTHING SPURS SURGE IN QUARTERLY NET HAGGAR CORP BENEFITING FROM STRONG DEMAND FOR ITS WRINKLERESISTANT ALLCOTTON CLOTHING REPORTED THAT ITS FISCAL FIRSTQUARTER PROFIT SOARED EIGHTFOLD WHILE ITS SALES JUMPED 34 THE DALLAS MENSWEAR MAKER'S STOCK JUMPED ON THE RESULTS AS DID SHARES OF RIVAL FARAH INC AN EL PASO TEXAS APPAREL CONCERN THAT ALSO MAKES WRINKLERESISTANT CLOTHING HAGGAR SAID NET INCOME IN THE PERIOD WHICH ENDED DEC 31 WAS 45 MILLION OR 51 CENTS A SHARE COMPARED WITH 529000 OR EIGHT CENTS A SHARE A YEAR EARLIER THE MENSWEAR CONCERN SAID IT SHIPPED MORE THAN 21 MILLION PAIRS OF ITS WRINKLERESISTANT COTTON PANTS IN THE LATEST QUARTER UP FROM 250000 IN THE YEAREARLIER PERIOD IT PREDICTED CONTINUED STRONG DEMAND FOR THE PRODUCT IN THE REST OF THE FISCAL YEAR AS WELL AS FOR TWO NEW WRINKLERESISTANT PRODUCTS SPORT SHIRTS AND BOY'S PANTS IN NASDAQ STOCK MARKET TRADING HAGGAR CLIMBED 4 OR 14 TO 3225 FARAH ROSE 875 CENTS OR 68 TO 1375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401200057 940120 PEPPERAND SALT ONLY THE INTELLIGENT ARE MAKING MONEY A TECHNICAL REBOUND WAS IT MOVED LEFT OR RIGHT 9401200056 940120 BUSINESS BRIEF KEYSTONE FINANCIAL INC BANKING COMPANY AGREES TO ACQUIRE FRANKFORD CORP KEYSTONE FINANCIAL INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FRANKFORD CORP A SOUTHEASTERN PENNSYLVANIA BANKING COMPANY WITH ABOUT 661 MILLION IN ASSETS KEYSTONE A BANK HOLDING COMPANY BASED IN HARRISBURG PA WILL PAY ABOUT 1315 MILLION IN STOCK OR 1333 KEYSTONE SHARES FOR EACH FRANKFORD SHARE KEYSTONE SAID THE ACQUISITION WOULD COMPLEMENT ITS SUBURBAN PHILADELPHIA OPERATIONS THE ACQUISITION TOGETHER WITH ANOTHER PENDING PURCHASE WILL BOOST KEYSTONE'S ASSETS TO ABOUT 45 BILLION IN NASDAQ STOCK MARKET TRADING KEYSTONE SHARES CLOSED AT 2975 DOWN 25 CENTS WHILE FRANKFORD SHARES SLIPPED 375 CENTS TO 37125 9401200055 940120 BITTER COLD FREEZES BUSINESS OTHER ACTIVITIES A WALL STREET JOURNAL NEWS ROUNDUP THE ARCTIC COLD FRONT SWEEPING ACROSS MUCH OF THE COUNTRY PUT A FREEZE ON BUSINESS AND CONSUMERS CLOSING OFFICES CRIPPLING MASSTRANSIT SYSTEMS AND CAUSING WIDESPREAD ELECTRICAL BLACKOUTS AND BROWNOUTS THE HUGE HIGHPRESSURE SYSTEM HOVERING OVER MUCH OF THE NATION WHICH HAS BROUGHT RECORD SUBZERO TEMPERATURES HAS HELD THE MIDWEST IN ITS GRIP FOR SEVERAL DAYS PROMPTING EVEN RUGGED MINNESOTANS TO CLOSE DOWN MOST STATE OFFICES AND MANY BUSINESSES RESIDENTS IN OTHER REGIONS LESS PREPARED FOR THE FRIGID CONDITIONS FACED POWER CUTBACKS NATURAL GAS CURTAILMENTS AND MANY SCHOOL PUBLIC OFFICE AND BUSINESS CLOSINGS IN ATLANTA THE COLD CRACKED AGING WATER MAINS AND NEARLY A MILLION RESIDENTS WERE ASKED NOT TO WASH CLOTHES OR TAKE SHOWERS OR BATHS UNTIL THE LINE WAS FIXED PENNSYLVANIA AND WASHINGTON DC DECLARED A STATE OF EMERGENCY WHILE KENTUCKY EXTENDED A STATE OF EMERGENCY INTO A THIRD DAY TRANSPORTATION PROBLEMS AFFECTED MANY BUSINESSES PARTICULARLY IN KENTUCKY WHERE ICE AND SNOW SHUT DOWN THE ENTIRE INTERSTATE HIGHWAY SYSTEM HUNDREDS OF RIGS JAMMED THE PARKING LOT OF A MALL IN FLORENCE KY AWAITING THE HIGHWAYS' REOPENINGS WHILE OTHERS CAMPED IN RESTAURANTS SERVICE STATIONS AND EMERGENCY NATIONAL GUARD CENTERS PEOPLE ARE GETTING PRETTY TESTY SAID MAJOR JOHN WITT OF THE STATE POLICE MEANWHILE UNITED PARCEL SERVICE OF AMERICA INC'S LOUISVILLE KY HUB WHICH SORTS MORE THAN 60 OF UPS DELIVERIES WAS SHUT DOWN EARLY IN THE WEEK HOLDING UP MORE THAN 400000 PACKAGES WITH MANY OF ITS LOUISVILLE EMPLOYEES STRANDED UPS REROUTED THOUSANDS OF PACKAGES ON TRAINS AND TRUCKS AND RENTED A FLEET OF LEAR JETS TO HANDLE OVERNIGHT DELIVERIES THE WEATHERRELATED PROBLEMS ARE EXPECTED TO COST THE SHIPPING GIANT MORE THAN 100 MILLION IN ADDITIONAL EXPENSES AND LOST BUSINESS BEFORE THE SYSTEM IS RUNNING FULL BLAST TODAY SAID KENT C OZ NELSON THE COMPANY'S CHIEF EXECUTIVE OFFICER NOT EVERY BUSINESS WAS UPSET ABOUT THE COLD WE ABSOLUTELY LOVE THIS WEATHER SAID A SPOKESMAN FOR JOHNSON CONTROLS INC OF MILWAUKEE ONE OF THE LARGEST MAKERS OF AUTOMOTIVE BATTERIES INCLUDING THE DIEHARD LINE WHEN THE TEMPERATURE DROPS OUR BATTERY SALES GO UP JAMES KEYES JOHNSON CONTROLS' CHIEF EXECUTIVE OFFICER HAS INSTRUCTED THE RECEPTIONIST AT CORPORATE HEADQUARTERS TO REMIND EMPLOYEES WHO COME IN COMPLAINING ABOUT THE COLD WHAT BUSINESS WE'RE IN THE SPOKESMAN SAID SIMILARLY QUAKER OATS CO SAID ITS HOT OATMEAL WAS ENJOYING HUGE SALES THIS WEEK BUT SUCH UPBEAT REACTION WAS RARE FOR SOME INSURANCE COMPANIES CLAIMS FROM COLLAPSED ROOFS AND FALLEN GUTTERS COULD EXCEED THE LOSSES FROM MONDAY'S EARTHQUAKE IN LOS ANGELES DEDUCTIBLES FOR SUCH CLAIMS ARE ONLY A FEW HUNDRED DOLLARS RATHER THAN SEVERAL THOUSAND DOLLARS FOR EARTHQUAKE COVERAGE IF PIPES BURST THAT'S COVERED SAID SEAN MOONEY ECONOMIST FOR THE INSURANCE INFORMATION INSTITUTE UTILITIES WERE HARD PRESSED TO COPE WITH THE WEATHER PROBLEMS GAS AND ELECTRICITY USE SURGED TO RECORDS FORCING UTILITIES TO RESORT TO UNUSUAL METHODS OF MAINTAINING BALANCE ON THEIR SYSTEMS OFFICIALS WITH PJM INTERCONNECTION ASSOCIATION A POWERSHARING SYSTEM FOR MANY MIDATLANTIC ELECTRIC UTILITIES SAID THE SITUATION WAS THE WORST IN MORE THAN 20 YEARS POWER COMPANIES IN MANY EASTERN STATES REDUCED VOLTAGE TO CUSTOMERS IMPOSED CONTROLLED OUTAGES AND URGED CUSTOMERS TO TURN THEIR THERMOSTATS DOWN TO REDUCE THE DRAIN ON ENERGY SUPPLIES GAS UTILITIES TOOK INTERRUPTIBLE BUSINESS CUSTOMERS OFF THEIR SYSTEMS TO ENSURE RESIDENTIAL USERS COULD REMAIN WARM AND AS ROADS SIDEWALKS STEPS AND OVERPASSES ICED UP SUPPLY PROBLEMS MADE ROCK SALT MORE AND MORE SCARCE AKZO SALT INC A UNIT OF AKZO NV OF THE NETHERLANDS SAID IT HAS ENOUGH SALT BUT IT WAS HAVING TROUBLE GETTING PORTIONS OF ITS TWO MILLION TONS OF SALT ON THE GROUND TO MUNICIPALITIES IN THE NORTHEAST IT'S BEEN DIFFICULT BUT WE'RE NOT READY TO CALL UNCLE YET SAID CATHERINE BOLTON A SPOKESWOMAN FOR AKZO PATHMARK STORES INC HAS FREQUENTLY BEEN OUT OF STOCK OF SEVERAL COLDFIGHTING ITEMS ROCK SALT WINDSHIELDWIPER FLUID AND FLUIDS TO KEEP AUTO GAS LINES FROM FREEZING UP MANY OF THE COMPANY'S STORES HAVE ALSO SEEN A RUN ON CAT LITTER USED TO HELP GIVE CARS TRACTION COLD MEDICINES AND PRESCRIPTIONS FOR ANTIBIOTICS CONRAIL INC SAID THE SEVERE COLD IS CAUSING WIDESPREAD BREAKDOWNS AND DELAYS THROUGHOUT ITS 14STATE RAIL SYSTEM IN THE NORTHEAST AND MIDWEST AMONG THE PROBLEMS CRACKED RAILS SIGNAL FAILURES LOCOMOTIVE BREAKDOWNS AND AN INABILITY OF CREWS TO DRIVE TO WORK THE RAILROAD IS RUNNING SHORTER TRAINS BECAUSE AIR BRAKES DON'T WORK PROPERLY IN THE EXTREME COLD THE RAILROAD ALSO WAS EXPERIENCING SOME SHORTAGES OF CREWS YOU WOULD HAVE TO GO BACK TO THE WINTER OF 19771978 TO EQUAL THE EFFECTS OF THE CURRENT WEATHER SAID A CONRAIL SPOKESMAN IT IS AFFECTING US EVERYWHERE WE GO HE ADDED WE'RE GETTING THE FREIGHT THROUGH BUT IT IS TAKING LONGER MANY FREIGHT AND RAIL SHIPMENTS WERE DELAYED 12 TO 36 HOURS MANUFACTURERS THAT HAVE ADOPTED JUSTINTIME PRODUCTION SCHEDULES ARE BEING HURT AS A RESULT SAID J SCOTT HAMILTON SENIOR ASSOCIATE OF ARTHUR D LITTLE INC A CONSULTING FIRM IN CAMBRIDGE MASS SOME MANUFACTURERS HAVE SHUT DOWN FOR A SHIFT OR TWO WHEN SHIPMENTS OF CRITICAL PARTS WERE DELAYED HOWEVER MR HAMILTON SAYS THE SLOWDOWNS WILL BE IMPERCEPTIBLE TO MOST CONSUMERS FORD MOTOR CO WAS AMONG THE HARDEST HIT AMONG MANUFACTURERS CLOSING TWO PLANTS IN LOUISVILLE KY AND 11 OTHER PLANTS IN FOUR STATES AND ONTARIO OTHER MAJOR AUTO MAKERS ALSO SHUT PLANTS IN WASHINGTON MANY FEDERAL GOVERNMENT OFFICES CLOSED AND EVEN THE ENERGY DEPARTMENT LOST ENERGY A STEAM PLANT THAT SUPPLIES HEAT TO SEVERAL FEDERAL OFFICES BROKE DOWN AND BY LATE YESTERDAY MORNING SHIVERING EMPLOYEES AT THE ENERGY AGRICULTURE AND COMMERCE DEPARTMENTS WERE HEADED HOME BUT BY YESTERDAY THERE WERE SIGNS THAT NEARLY A WEEK OF PUNISHING COLD WAS RELENTING IN THE UPPER MIDWEST IN CHICAGO WINDS DECLINED AND TEMPERATURES INCHED ABOVE ZERO AFTER HITTING A LOW OF 21 BELOW ZERO AND A HIGH FOR THE DAY ON TUESDAY OF 11 BELOW A SPOKESWOMAN FOR THE CITY OF CHICAGO NOTED THAT ON TUESDAY MORE THAN 500 O'HARE FLIGHTS WERE CANCELED INCLUDING MORE THAN 400 BY UAL CORP'S UNITED AIRLINES ALONE BECAUSE OF THE RELATIVELY LOW NUMBER OF SEATS THAT HAD BEEN SOLD SHE NOTED CARRIERS FREQUENTLY CHOSE TO CONSOLIDATE A NUMBER OF FLIGHTS TO CERTAIN DESTINATIONS BUT WE'RE BACK ON TRACK NOW SHE ADDED LATE YESTERDAY 9401200054 940120 BUSINESS BRIEF TAKECARE INC SHAREHOLDERS FILE LAWSUIT TO BLOCK PURCHASE BY FHP TAKECARE INC CONCORD CALIF SAID SOME OF ITS SHAREHOLDERS HAVE FILED A LAWSUIT IN DELAWARE CHANCERY COURT TO BLOCK ITS PROPOSED 829 MILLION ACQUISITION BY FHP INTERNATIONAL CORP THE HOLDERS WHO COLLECTIVELY OWN 22 OF TAKECARE'S STOCK ALLEGE THAT THE COMPANY'S BOARD NEGLECTED ITS FIDUCIARY DUTIES IN AGREEING TO SELL THE COMPANY THAT AGREEMENT WAS ANNOUNCED JAN 10 TAKECARE AND FHP BASED IN FOUNTAIN VALLEY CALIF ARE BOTH HEALTHMAINTENANCE ORGANIZATIONS THEIR PLANNED COMBINATION WOULD CREATE ONE OF THE THREE LARGEST PUBLICLY TRADED HMOS IN THE COUNTRY TAKECARE SAID THE SUIT IS WITHOUT MERIT AND THAT IT IS PROCEEDING WITH PLANS TO CLOSE THE DEAL 9401200053 940120 BUSINESS BRIEF CANADIAN IMPERIAL BANK TAL INVESTMENT COUNSEL AGREES TO MERGE WITH UNIT CANADIAN IMPERIAL BANK OF COMMERCE MONTREAL AGREED TO MERGE ITS INVESTMENT MANAGEMENT UNIT WITH TAL INVESTMENT COUNSEL LTD ONE OF CANADA'S BIGGEST PENSIONFUND MANAGEMENT FIRMS THE BANK WILL PAY 65 MILLION TO 70 MILLION CANADIAN DOLLARS US495 MILLION TO US533 MILLION IN CASH OR SHARES FOR A 55 OWNERSHIP INTEREST IN THE MERGED COMPANY BUT TAL WILL RETAIN MANAGEMENT CONTROL AND MAJORITY BOARD REPRESENTATION TAL AND CIBC WILL EXERCISE EQUAL VOTING RIGHTS IN THE COMPANY WHICH WILL OPERATE UNDER THE TAL NAME THE AGREEMENT FITS WITH A TREND AMONG CANADIAN BANKS TO EXPAND INTO INVESTMENT MANAGEMENT FOLLOWING RECENT DEREGULATION THE MERGED COMPANY WILL HAVE ABOUT C20 BILLION IN ASSETS UNDER ADMINISTRATION THE MERGER SUBJECT TO DUE DILIGENCE AND REGULATORY APPROVAL IS EXPECTED TO CLOSE AROUND FEB 28 9401200052 940120 CORRECTIONS & AMPLIFICATIONS UAL CORP'S UNITED AIRLINES SAYS ITS NONRESTRICTED ROUNDTRIP FARE BETWEEN CHICAGO AND NEWARK NJ IS 682 FOR MOST TRAVELERS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THE FARE WAS 1120 WHICH IS THE HIGHEST PUBLISHED FARE BUT NOT WHAT MOST TRAVELERS PAY GRUPO MEXICANO DE DESARROLLO'S INITIAL PUBLIC OFFERING WAS PRICED AT 34 A UNIT ON DEC 14 1993 EACH UNIT CONSISTED OF A SERIES L SHARE AND A SERIES B SHARE WHICH IMMEDIATELY BEGAN TRADING SEPARATELY AT 19 FOR THE L SHARES AND 18875 FOR THE B SHARES THE L SHARES CLOSED AT 2450 ON JAN 14 1994 UP 29 FROM THE OPENING PRICE THE B SHARES CLOSED AT 2425 UP 28 FROM THE OPENING PRICE THESE FIGURES WERE MISSTATED IN YESTERDAY'S INVESTMENT INSIGHT TABLE WHICH REFLECTED THE ENTIRE UNIT PRICE AS THE OFFERING PRICE BUT ONLY THE L SHARE CLOSING PRICE 9401200051 940120 BUSINESS BRIEF MCKESSON CORP FISCAL THIRDQUARTER PROFIT ROSE 14 ON 8 SALES GAIN MCKESSON CORP SAID NET INCOME CLIMBED 14 TO 317 MILLION IN ITS THIRD QUARTER ON AN 8 SALES GAIN BUOYED BY RAPID GROWTH OF ITS MANAGED PRESCRIPTIONCARE SERVICE THE RESULTS FOR THE FISCAL THIRD QUARTER ENDED DEC 31 EQUIVALENT TO 69 CENTS A SHARE COMPARED WITH 278 MILLION OR 60 CENTS A SHARE A YEAR AGO SALES WERE 325 BILLION UP 8 FROM 301 BILLION ANALYSTS FIGURED THE SAN FRANCISCOBASED COMPANY WHOSE RAZORTHIN PROFIT MARGINS ARE TYPICAL OF A DISTRIBUTION CONCERN WOULD DO SLIGHTLY BETTER EARNING 72 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MCKESSON SHARES CLOSED AT 54875 DOWN 875 CENTS THE DRUG DISTRIBUTOR AND HEALTHCARE SERVICES CONCERN NOTED THAT REVENUE AT ITS PCS HEALTH SYSTEMS DIVISION WHICH PROVIDES PRESCRIPTION SERVICES FOR 45 MILLION PEOPLE ROSE 67 IN THE QUARTER 9401200050 940120 LETTERS TO THE EDITOR IN DEFENSE OF MUTUAL BANKS IN RESPONSE TO JONATHAN MACEY'S DEC 29 EDITORIALPAGE PIECE MUTUAL BANKS TAKE YOUR MONEY AND RUN MR MACEY IS CONFUSED AND WRONG ABOUT THE DIFFERENCE BETWEEN PROPERTY RIGHTS EITHER IN RUSSIA OR THE US AND THE RIGHTS OF DEPOSITORS IN MUTUAL SAVINGS BANKS MUTUAL DEPOSITORS RECEIVE A GUARANTEED RETURN OF PRINCIPAL AND EARNED INTEREST UP TO THE LIMITS SET FORTH UNDER THE FEDERAL DEPOSIT INSURANCE ACT THEY ARE NOT AT RISK AND THUS THEY ARE NEITHER OWNERS NOR HAVE PROPERTY RIGHTS EXCEPT ARGUABLY IN A SOLVENT LIQUIDATION AS THOSE TERMS ARE TRADITIONALLY UNDERSTOOD UNDER US LAW NONETHELESS A THRIFT DESIRING TO CONVERT TO STOCK FORM MUST RECEIVE THE APPROVAL OF DEPOSITORS UNDER NEW YORK LAW AND IF ITS CONVERSION IS APPROVED DEPOSITORS MAY INVEST IN THE STOCK TO BE OFFERED MR MACEY WRONGLY CLAIMS THAT A DECISION TO CONVERT IS LEFT SOLELY TO MANAGEMENT THAT EXPLAINS HIS ERRONEOUS THESIS THAT CONTROL OF MUTUAL BANKS SHOULD BE DETERMINED BY MARKET FORCES STATE AND FEDERAL LAWS DO NOT REQUIRE MUTUAL THRIFTS TO CONVERT TO STOCK FORM NOR CAN THEY BE COMPELLED TO DO SO MARKET FORCES ARE THUS LESS IMPORTANT IN THE CONTEXT OF A MUTUAL TO STOCK CONVERSION THAN THEY WOULD BE IN A SALE OF A STOCK INSTITUTION IF MUTUALS CANNOT BE FORCED TO CONVERT SUBJECTING THEM TO HOSTILE CHANGES IN CONTROL IF THEY TRY TO CONVERT WOULD DISCOURAGE MOST FROM TRYING THUS STATE AND FEDERAL LAWS LEAVE THE DECISION WHETHER TO INITIATE A CONVERSION TO MANAGEMENT BUT THE ULTIMATE DECISION WHETHER TO CONVERT IS NOT LEFT TO MANAGEMENT IN NEW YORK THE SUPERINTENDENT OF BANKS MUST APPROVE A CONVERSION PLAN BASED UPON EXACTING REQUIREMENTS DESIGNED TO PROTECT THE PUBLIC INTEREST AND THE INTERESTS OF DEPOSITORS THEN DEPOSITORS MUST APPROVE THE ACTUAL CONVERSION PROPOSAL BY AT LEAST 75 OF THE VOTES CAST ON THE ISSUE MR MACEY'S FEAR THAT AN UNDERPRICED CONVERSION CAN LEAD TO UNDERCAPITALIZATION IS REAL HE OMITS TO STATE HOWEVER THAT THAT IS AN ISSUE INTO WHICH THE SUPERINTENDENT CURRENTLY IS INQUIRING AND THAT GREEN POINT SAVING BANK'S CONVERSION PLAN IS DEFERRED PENDING A DETERMINATION OF THE FACTS SURROUNDING THE APPRAISAL PROCESS EMPLOYED MR MACEY'S STATEMENT THAT THE SUPERINTENDENT OF BANKS SENT A LETTER TO REPUBLIC NEW YORK CORP SAYING THAT ITS PROPOSED SPECIAL INTEREST PAYMENT WOULD NOT BE LEGAL IF OFFERED TO INFLUENCE THE VOTES OF DEPOSITORS IS INACCURATE THE SUPERINTENDENT DID NOT SEND A LETTER TO REPUBLIC A LEGAL OPINION ON THE SUBJECT WAS REQUESTED BY REPUBLIC MR MACEY ALSO DOES NOT DISCLOSE THAT UNLIKE OUR UNDERSTANDING OF THE RULE IN OTHER STATES AND UNDER FEDERAL LAW THE SUPERINTENDENT OUTLINED CIRCUMSTANCES IN WHICH A SPECIAL INTEREST PAYMENT TO DEPOSITORS COULD BE MADE I IF THERE IS A LEGITIMATE BUSINESS PURPOSE FOR THE PAYMENT II IF THE PRIMARY PURPOSE OF THE PAYMENT IS NOT TO INDUCE A FAVORABLE VOTE OF DEPOSITORS AND III IF THE PAYMENT DOES NOT RAISE SAFETY OR SOUNDNESS CONCERNS THE IMPACT OF THE LETTER WAS TO ALLOW A PAYMENT TO DEPOSITORS THAT HERETOFORE MIGHT HAVE BEEN IMPERMISSIBLE NOT TO PROHIBIT OR LIMIT SUCH A PAYMENT AS MR MACEY IMPLIES UNDER FEDERAL LAW AND UNDER THE LAWS OF THE STATES OF WHICH WE ARE FAMILIAR NO SUCH PAYMENT IS PERMISSIBLE UNDER ANY CIRCUMSTANCES REPUBLIC NEVER DEIGNED TO MEET ANY OF THESE STANDARDS SO IT IS UNCLEAR ON WHAT BASIS IF ANY MR MACEY STATES THAT THE PAYMENT WAS NOT MADE SOLELY TO INFLUENCE VOTES INDEED CONTRARY TO MR MACEY'S ASSERTION THE PAYMENT WAS NEVER MADE MR MACEY STATES THAT THE SUPERINTENDENT'S PRESS RELEASE ADVISING THAT REPUBLIC'S OFFER WAS ILLEGAL AND IMPROPER WAS ISSUED WITHOUT PRIOR NOTICE TO REPUBLIC OF THE SUPERINTENDENT'S VIEWS AND WAS NOT ACCOMPANIED BY ANY CITATION OF LEGAL AUTHORITY BOTH ASSERTIONS ARE FALSE REPUBLIC'S REPRESENTATIVES WERE INFORMED OF THE SUPERINTENDENT'S VIEWS BEFORE THEY TOOK THE ACTION THAT PROMPTED HIS RELEASE MOREOVER THE BASIS FOR THE SUPERINTENDENT'S POSITION WAS DISCLOSED TO REPUBLIC MR MACEY ASSERTS THAT THE SUPERINTENDENT THEN LAUNCHED AN INVESTIGATION OF REPUBLIC THIS IS UNTRUE ON NOV 18 THE SUPERINTENDENT MERELY REQUESTED OF BOTH REPUBLIC AND GREEN POINT THAT THEY PROVIDE THE DEPARTMENT WITH CERTAIN ADDITIONAL BACKGROUND MATERIAL AND INFORMATION 9401200049 940120 CREDIT RATINGS CONSOLIDATED EDISON CO OF NEW YORK NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING FOR A POSSIBLE DOWNGRADE ITS RATINGS ON 37 BILLION OF DEBT ISSUED BY CON EDISON MOODY'S SAID THE REVIEW REFLECTS CONCERNS ABOUT THE COMPANY'S ABILITY TO MAKE ITS INTEREST PAYMENTS ON DEBT IN VIEW OF COMPETITIVE PRESSURES AND UNCERTAINTY ABOUT FUTURE RATE INCREASES MOODY'S ALSO SAID IT IS CONCERNED ABOUT CON EDISON'S FUTURE OBLIGATIONS TO PAY INDEPENDENT POWER PRODUCERS UNDER LONGTERM CONTRACTS THAT DON'T APPEAR ON ITS BALANCE SHEET A CON EDISON SPOKESMAN SAID THE COMPANY PLANS TO DEMONSTRATE THAT IT HAS CONSIDERABLE FINANCIAL STRENGTH A VERY SOUND BALANCE SHEET AND VERY GOOD FINANCIAL FLEXIBILITY AMONG THE RATINGS UNDER REVIEW ARE THE DOUBLEAONE RATING OF CON EDISON'S FIRST AND REFUNDING MORTGAGE BONDS 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 9401200048 940120 LETTERS TO THE EDITOR SNEAKERWHIFFING ADS NOT FUNNY TO EVERYONE IN RESPONSE TO YOUR DEC 16 ADVERTISING COLUMN CRITICS CRY FOUL AT NIKE SPOTS WITH ACTOR AS THE MOTHER OF A WONDERFUL YOUNG MAN WITH SCHIZOPHRENIA I AGREE WITH SHADRACH STANLEIGH OF THE NATIONAL STIGMA CLEARINGHOUSE WHAT IS THE POINT OF NIKE'S AD CAMPAIGN SHOWING A SLEEPLESS TICRIDDEN SNEAKERWHIFFING MENTALLY ILL EXREFEREE I FAIL TO SEE HOW THIS AD CONCEPT HELPS SELL SHOES THE ADS ARE NOT FUNNY TO THOSE OF US WHO KNOW THE TORMENTS OF SLEEPLESS NIGHTS I AM AFRAID TO CLOSE MY EYES MY SON HAS TOLD ME WHAT MONSTERS ARE GOING TO BE MY COMPANIONS I LIE AWAKE AT NIGHT KEEPING MY OWN MONSTERS AT BAY WHO WILL WATCH OVER MY ONLY SON AFTER I A WIDOW AM GONE WATCHING THE ADS AN INEXPRESSIBLE SORROW COMES OVER US MY SON WAS STRICKEN AT AGE 17 HE COULD HAVE BEEN ANYTHING BUT NIKE DREAMS ARE ONLY DREAMS NOW AND HE DOESN'T BUY NIKES ANY MORE MRS VILLAMIL WAS CHOSEN TO BE ONE OF 50 FACES OF HOPE BY PRESIDENT CLINTON FOR HER ADVOCACY ON BEHALF OF PEOPLE WITH MENTAL ILLNESS NIKE IS INDEED STRETCHING THE ENVELOPE OF ADVERTISING CREATIVITY AND DOING SO WITH THE IDEALS OF HUMOR AND INGENUITY AT THE EXPENSE OF NO SPECIAL INTEREST GROUPS THE NATIONAL STIGMA CLEARINGHOUSE AND OTHER GRIMFACED POLITICALLY CORRECT WATCHDOG GROUPS SEEM INTENT ON IMPOSING THEIR NARROWMINDED INTERPRETATIONS ON THE MAJORITY OF OUR SOCIETY UPTIGHT SPECIAL INTEREST ORGANIZATIONS THAT EFFECTIVELY BULLY CORPORATE AMERICA INTO ACQUIESCENCE SERVE TO LIMIT FREEDOM OF EXPRESSION AND MORE IMPORTANTLY THE FREEDOM TO ACHIEVE MEDIOCRITY IS SYNONYMOUS WITH THE POLITICALLY CORRECT CROWD IT ALSO SEEMS RATHER CLEAR TO ME WHY STEVEN LEVITT PRESIDENT OF MARKETING EVALUATIONS AND CITED IN YOUR ARTICLE WAS NOT CONSULTED BY NIKE FOR THIS AD CAMPAIGN I'M AN IVY LEAGUE GRADUATE WITH A FAMILY AND SUCCESSFUL BUSINESS ALL OF MY FRIENDS ON THE POLITICAL RIGHT AND LEFT KNOW DENNIS HOPPER AND THOROUGHLY ENJOY THE CAMPAIGN DON'T HAMSTRING CREATIVE AGENCIES LIKE WEIDEN & KENNEDY WITH ABSTRACT INTERPRETATIONS BY JOYLESS GROUPS WITH GIANT CHIPS ON THEIR POLITICALLY CORRECT SHOULDERS 9401200047 940120 INTERNATIONAL BRIEF AB VOLVO NEW CHAIRMAN IS SVANHOLM OF ABB ASEA BROWN BOVERI AN EXTRAORDINARY SHAREHOLDERS MEETING OF AB VOLVO IN GOTHENBURG SWEDEN ELECTED BERTOLOF SVANHOLM CHAIRMAN OF THE SWEDISH AUTOMOTIVE GROUP IN LINE WITH AN EARLIER PROPOSAL MR SVANHOLM IS PRESIDENT OF ABB ASEA BROWN BOVERI LTD AN ENGINEERING CONCERN JOINTLY OWNED BY ASEA AB OF SWEDEN AND BBC BROWN BOVERI AG OF SWITZERLAND HE SUCCEEDS PEHR G GYLLENHAMMAR WHO RESIGNED IN DECEMBER AFTER THE COLLAPSE OF A PLAN TO MERGE VOLVO'S VEHICLE OPERATIONS WITH THOSE OF FRENCH PARTNER RENAULT SA IT WAS NOT CLEAR WHO WOULD SUCCEED MR SVANHOLM AT ABB ASEA BROWN BOVERI MEANWHILE IN A SPEECH TO SHAREHOLDERS VOLVO PRESIDENT SOEREN GYLL DIDN'T GIVE ANY CLEAR INDICATION OF VOLVO'S STRATEGY OR THE FUTURE OF THE RENAULT ALLIANCE HE ALSO SAID 1993 CAR SALES ROSE TO 311000 CARS THE FIRST ANNUAL INCREASE SINCE 1986 THE UPSWING WAS MAINLY IN JAPAN SOUTHEAST ASIA AND NORTH AMERICA 9401200046 940120 BUSINESS BRIEF NATIONAL SEMICONDUCTOR CORP MITSUBISHI ELECTRIC SETTLES PATENTINFRINGEMENT LAWSUIT NATIONAL SEMICONDUCTOR CORP SAID THE PATENTINFRINGEMENT LAWSUIT IT FILED LAST JULY AGAINST MITSUBISHI ELECTRIC CORP IN LOS ANGELES AND DURHAM NC FEDERAL COURTS HAS BEEN SETTLED NATIONAL SEMICONDUCTOR BASED IN SANTA CLARA CALIF HAD ALLEGED THAT TOKYOBASED MITSUBISHI ILLEGALLY USED SOME OF ITS PROPRIETARY CHIP TECHNOLOGIES IN MITSUBISHI PRODUCTS BEFORE THE SUIT WAS FILED THE TWO COMPANIES HAD ENGAGED IN CROSSLICENSING TALKS FOR TWO YEARS BUT REACHED NO AGREEMENTS TERMS OF THE SETTLEMENT WERE NOT DISCLOSED NATIONAL SEMICONDUCTOR SAID THE TWO COMPANIES ALSO RESOLVED A RELATED COMPLAINT IT LODGED WITH THE US INTERNATIONAL TRADE COMMISSION 9401200045 940120 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 AON CORP 100 MILLION OF NOTES DUE JAN 15 2004 PRICED AS 63S AT 99697 TO YIELD 6341 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 63 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FAMILY RESTAURANTS INC 450 MILLION OF DEBT PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF SENIOR NOTES DUE FEB 1 2002 WAS PRICED AT PAR TO YIELD 975 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE SECOND TRANCHE 150 MILLION FACE OF SENIOR SUBORDINATED DISCOUNT NOTES DUE FEB 1 2004 WAS PRICED AT 72697 TO YIELD 10875 THE NOTES WILL PAY NO COUPON FOR FOUR YEARS THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF NOTES DUE JAN 26 1996 PRICED AT PAR TO YIELD 4125 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF NOTES DUE JAN 27 2004 PRICED INITIALLY AT PAR TO YIELD 627 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST CHICAGO CORP 200 MILLION OF NOTES DUE JAN 30 2009 PRICED AS 6375S AT 98886 TO YIELD 6492 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC MFS COMMUNICATIONS CORP 500 MILLION PROCEEDS OF SENIOR DISCOUNT NOTES DUE JAN 15 2004 PRICED AT 63426 TO YIELD 9375 THE NOTES WON'T PAY A COUPON FOR FIVE YEARS THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PRIVATE EXPORT FUNDING CORP 125 MILLION OF SENIOR SECURED NOTES DUE FEB 1 2004 PRICED AS 58S AT 99853 TO YIELD 5825 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND TRIPLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP PLANTRONICS INC INITIAL OFFERING OF 36 MILLION COMMON SHARES PRICED AT 1250 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC REYNOLDS METALS CO 10 MILLION SHARES OF 7 CONVERTIBLE PREFERRED STOCK PRICED AT 4725 EACH ACCORDING TO THE COMPANY THE ISSUE CALLED PREFERRED REDEEMABLE INCREASEDDIVIDEND EQUITY SECURITIES WILL PAY AN ANNUAL DIVIDEND OF 331 A SHARE EACH SHARE WILL CONVERT INTO A SHARE OF COMMON STOCK DEC 31 1997 UNLESS REDEEMED OR CONVERTED EARLIER THE COMPANY CAN REDEEM THE SHARES BEGINNING DEC 31 1996 UNLESS REDEEMED BEFORE DEC 31 1997 EACH SHARE IS CONVERTIBLE AT THE HOLDER'S OPTION INTO 082 COMMON SHARE MERRILL LYNCH & CO IS THE LEAD UNDERWRITER SOUTHEASTERN MICHIGAN GAS ENTERPRISES INC 650000 COMMON SHARES PRICED AT 2050 EACH THROUGH UNDERWRITER DEAN WITTER REYNOLDS INC ACCORDING TO THE COMPANY EQUITY RESIDENTIAL PROPERTIES TRUST FIVE MILLION COMMON SHARES PRICED AT 29 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GABLES PROPERTIES TRUST INITIAL OFFERING OF 82 MILLION SHARES OF BENEFICIAL INTEREST PRICED AT 2250 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GLIMCHER REALTY TRUST INITIAL OFFERING OF 158 MILLION SHARES OF BENEFICIAL INTEREST PRICED AT 2025 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC MASSACHUSETTS 200 MILLION OF SERIES A CONSOLIDATED LOAN OF 1994 GENERALOBLIGATION BONDS APPARENTLY WON BY A BEAR STEARNS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1996 TO 535 IN 2014 BONDS DUE IN 200508 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE BONDS HAVE A SINGLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P NORTH CAROLINA 400 MILLION OF CAPITALIMPROVEMENT BONDS APPARENTLY WON BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 23 IN 1995 TO 5 IN 2012 AND 2013 THE BONDS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P WASHINGTON SUBURBAN SANITARY DISTRICT MARYLAND 4353 MILLION OF VARIOUS 1994 IMPROVEMENT WATERSUPPLY SEWAGEDISPOSAL AND GENERALCONSTRUCTION REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 29 IN 1995 TO 52 IN 201315 MOODY'S RATED THE ISSUE DOUBLEA1 AND S&P ASSIGNED A DOUBLEA RATING WISCONSIN 1198 MILLION OF 1994 SERIES A IMPROVEMENT BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP YIELDS RANGE FROM 275 IN 1995 TO 52 IN 2013 AND 2014 MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1682 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1681 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 199422 IS BACKED BY THE AGENCY'S STRIPS TRUST 254 WHICH IN TURN IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES FEDERAL NATIONAL MORTAGE ASSOCIATION 200 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199425 IS BACKED BY THE AGENCY'S STRIPS TRUST 252 WHICH IN TURN IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES DANSK NATURGAS AS DENMARK 500 MILLION DANISH KRONER OF 6 EUROBONDS DUE FEB 23 2004 AT ISSUE PRICE 10142 VIA DEUTSCHE BANK AG LONDON AT RECOMMENDED REOFFER PRICE 9962 BONDS YIELD 605 A MARGIN OF 15 BASIS POINTS ABOVE COMPARABLE DANISH GOVERNMENT BOND GUARANTOR DENMARK FEES TWO EXPORT DEVELOPMENT CORP CANADIAN AGENCY 150 MILLION OF FLOATINGRATE GLOBAL NOTES DUE FEB 15 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA SWISS BANK CORP INTEREST PAID QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 075 INTEREST ACCRUES ONLY ON DAYS WHEN THE THREEMONTH LIBOR RATE FALLS WITHIN FOLLOWING RANGES 25 TO 4 FOR FIRST SIX MONTHS 25 TO 475 IN SECOND SIX MONTHS 25 TO 55 IN THIRD SIX MONTHS 25 TO 6 IN LAST SIX MONTHS FEES 015 FRANKFURTER HYPOTHEKEN BANK AG GERMANY 125 MILLION MARKS OF FIXED AND FLOATINGRATE BONDS THAT QUALIFY AS OEFFENTLICHER PFANDBRIEF R 642 OR MORTGAGEBACKED BONDS DUE FEB 2 2004 AT ISSUE PRICE 1017 VIA DEUTSCHE BANK AG BONDS SECURED ON MORTGAGES FROM FRANKFURTER HYPOTHEKEN BANK AG AND FOR FIRST TWO YEARS BONDS PAY INTEREST ANNUALLY WITH A 525 COUPON FOR YEARS THREE TO SIX INTEREST PAID SEMIANNUALLY FLAT AT LIBOR FOR YEARS SEVEN TO 10 COUPON FIXED AT 7 AND INTEREST PAID ANNUALLY FEES 23 LONG TERM CREDIT BANK OF JAPAN LTD JAPAN 50 MILLION OF REVERSECOUPON FLOATINGRATE EURONOTES DUE FEB 18 2004 AT ISSUE PRICE 1016 VIA LTCB INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AT SIXMONTH LIBOR PLUS 05 POINT UNTIL FEB 18 1997 WHEN BONDS CALLABLE AT PAR THEREAFTER COUPON 8 ANNUALLY FEES TWO NEDERLANDSE INVESTERINGSBANK VOOR ONTWIKKELINGSLANDEN DUTCH AGENCY 250 MILLION DUTCH GUILDERS OF 5625 EUROBONDS DUE FEB 11 2004 AT ISSUE PRICE 10005 VIA ABN AMRO BANK NV REOFFERED AT 993 TO YIELD 572 A MARGIN OF 12 BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN GUARANTOR NETHERLANDS FEES ONE OESTERREICHISCHE POSTSPARKASSE AUSTRIA 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 15 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA SWISS BANK CORP INTEREST PAID QUARTERLY AT THREEMONTH LIBOR PLUS 75 BASIS POINTS SUBJECT TO FOLLOWING RANGES FOR FIRST SIX MONTHS 25 TO 4 SECOND SIXMONTHS 25 TO 475 THIRD SIX MONTHS 25 TO 55 AND LAST SIX MONTHS 25 TO 6 GUARANTOR AUSTRIA FEES 015 PIV INVESTMENT FINANCE CAYMAN LTD HONG KONG PARENT 175 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 1 2000 AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL AND PEREGRINE CAPITAL LTD COUPON INDICATED AT 45 TO 5 SEMIANNUALLY CONVERTIBLE INTO ORDINARY SHARES OF PARENT COMPANY AT INDICATED PREMIUM OF 18 TO 22 WEDNESDAY'S CLOSING SHARE PRICE 1870 HONG KONG DOLLARS FINAL TERMS FIXED NEXT WEEK CALLABLE AT PAR PLUS ACCRUED INTEREST DURING FIRST THREE YEARS IF SHARE PRICE EXCEEDS 150 OF CONVERSION PRICE FOR 30 CONSECUTIVE DAYS CALLABLE AFTER THREE YEARS AT PAR PLUS ACCRUED INTEREST GUARANTOR AND PARENT PEREGRINE INVESTMENTS HOLDINGS LTD FEES 25 RABOBANK NEDERLAND NETHERLANDS 75 MILLION OF FLOATINGRATE EURONOTES DUE FEB 23 1995 AT ISSUE AND FIXED REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS PAY INTEREST AT 45 TIMES RANGE FACTOR SEMIANNUALLY RANGE FACTOR IS NUMBER OF DAYS THAT THREEMONTH LIBOR IS WITHIN RANGE DURING THE COUPON PERIOD DIVIDED BY UMBER OF DAYS IN COUPON PERIOD LIBOR RANGES ARE ZERO TO 4 IN FIRST SIX MONTHS AND ZERO TO 45 IN SECOND SIX MONTHS FEES 01 REMY COINTREAU SA FRANCE 700 MILLION FRENCH FRANCS OF 5875 EUROBONDS DUE FEB 15 1999 AT ISSUE AND FIXED REOFFER PRICE 9956 VIA CREDIT LYONNAIS BONDS PRICED TO YIELD 598 A MARGIN OF 85 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 0325 SAMSUNG ELECTROMECHANICS CO KOREA 70 MILLION SWISS FRANCS OF 025 PRIVATELY PLACED CONVERTIBLE NOTES DUE DEC 31 2000 AND REPAYABLE IN US DOLLARS AT ISSUE PRICE PAR VIA UNION BANK OF SWITZERLAND EACH NOTE CONVERTIBLE FROM FEB 28 TO NOV 30 2000 AT APPROXIMATE PREMIUM OF 33 OVER CLOSING SHARE PRICE TERMS FIXED JAN 19 FEES TWO SOUTH AUSTRALIAN FINANCING AUTHORITY AUSTRALIAN AGENCY 250 MILLION AUSTRALIAN DOLLARS OF 625 EUROBONDS DUE FEB 25 1999 AT ISSUE PRICE 10095 VIA HAMBROS BANK LTD BONDS PRICED TO YIELD 647 AT 99075 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR TREASURER OF SOUTH AUSTRALIA FEES TWO SWEDISH EXPORT CREDIT LTD SWEDISH AGENCY 25 BILLION SWEDISH KRONOR OF 65 GLOBAL BONDS DUE JUNE 5 2001 AT ISSUE AND FIXED REOFFER PRICE 99359 VIA MERRILL LYNCH INTERNATIONAL LTD AT FIXED REOFFER PRICE BONDS YIELD A MARGIN OF 11 BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES 05 UBS FINANCE NV SWISS PARENT 150 MILLION OF CORRIDOR FLOATINGRATE EURONOTES DUE FEBRUARY 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA UBS LTD COUPON IS ONE POINT OVER THE THREEMONTH LIBOR AND INTEREST IS PAID ONLY ON DAYS WHEN LIBOR FALLS WITHIN FOLLOWING RANGES FOR MONTHS ONE TO SIX 3 TO 4 MONTHS SEVEN TO 12 325 TO 45 MONTHS 13 TO 18 35 TO 55 MONTHS 19 TO 24 35 TO 6 GUARANTOR UNION BANK OF SWITZERLAND FEES 015 INTEREST PAYABLE QUARTERLY WORLD BANK SUPRANATIONAL 100 MILLION OF LIBOR CORRIDOR FLOATINGRATE NOTES DUE FEB 22 1996 AT ISSUE PRICE 100975 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT PAR INTEREST ACCRUED DAILY AT THREEMONTH LIBOR FOR ACCRUAL DATE FALLS WITHIN RANGE OF 3 TO 4 FOR FIRST THREE MONTHS WITH MAXIMUM RISING BY 025 EVERY THREE MONTHS TO 6 FOR EIGHTH THREEMONTH PERIOD FROM FEB 1 MORGAN STANLEY & CO INTERNATIONAL LTD WILL ASSUME ALL RESPONSIBILIES AND OBLIGATIONS OF MORGAN STANLEY INTERNATIONAL FEES 1125 INTEREST PAYABLE QUARTERLY WORLD BANK SUPRANATIONAL 50 BILLION YEN OF FLOATINGRATE EURONOTES DUE FEB 9 2001 AT ISSUE PRICE 1064 VIA NIKKO EUROPE PLC INTEREST PAID SEMIANNUALLY AT SIXMONTH LIBOR PLUS 30 BASIS POINTS FEES UNDISCLOSED 9401200044 940120 ENTERPRISE HOW AN OBSCURE SKI HILL CARVED A NICHE AMONG RESORTS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL CRESTED BUTTE COLO THE SMALL FAMILYOWNED SKIING RESORT HERE SPORTS JUST 1100 ACRES OF SKI TRAILS MANY OF THEM SKIABLE ONLY BY EXPERTS IT HAS ANTIQUATED LIFTS AND VERY LITTLE CAPITAL AND IT'S JUST 16 MILES AS THE CROW FLIES FROM ASPEN WITH ITS FOUR MOUNTAINS TRENDY INTERNATIONAL REPUTATION AND 3700 ACRES OF SKIING BUT THANKS TO A PIONEERING SPIRIT AND AGGRESSIVE MARKETING CRESTED BUTTE MOUNTAIN RESORT IS DOING JUST FINE THE RESORT'S OWNERS HAVE BEEN VERY GUTSY SAYS JERRY JONES A SKIAREA CONSULTANT BASED IN VAIL COLO THEY'VE TAKEN RISKS AND BEEN AHEAD OF THEIR TIME IN AN INDUSTRY IN THE THROES OF CONSOLIDATION SMALL FAMILYOWNED RESORTS SUCH AS CRESTED BUTTE ARE ENDANGERED SPECIES BIG RESORT OPERATORS SUCH AS VAIL ASSOCIATES INC ASPEN SKIING CO SKI LTD AND RALSTON PURINA CORP CONTINUE TO BUY UP RESORTS MEANWHILE MORE THAN 200 SMALL SKI AREAS OR ABOUT 25 OF ALL AREAS HAVE CLOSED IN THE PAST DECADE AND INDUSTRY EXPERTS EXPECT THE TREND TO CONTINUE TEN YEARS AGO CRESTED BUTTE SEEMED AN IDEAL CANDIDATE FOR EXTINCTION IT WAS A LITTLEKNOWN SKI HILL WITH ONLY 450 ACRES OF ROUTINE SKI TRAILS AND AN ANNUAL DEFICIT OF 2 MILLION CRESTED BUTTE'S SURVIVAL SHOWS THAT EVEN A SMALL RESORT ON A SHOESTRING BUDGET CAN HIRE TALENTED PEOPLE AND CAPTURE NATIONAL ATTENTION WITH INNOVATIVE MARKETING GEORGIANS HOWARD BO CALLAWAY AND RALPH O WALTON WHO ARE RELATED BY MARRIAGE BOUGHT CRESTED BUTTE IN 1970 AFTER BOTH WERE CHEWED OUT IN SEPARATE INCIDENTS BY ASPEN LIFTTICKET SALESPEOPLE THIS IS NO WAY TO RUN A RAILROAD MR WALTON REMEMBERS THINKING SOON MR WALTON HAD QUIT HIS JOB AT WESTINGHOUSE TO RUN CRESTED BUTTE WITH ADVICE FROM MR CALLAWAY WHO ALREADY OWNED A GARDEN RESORT IN GEORGIA FOR THE NEXT 14 YEARS THE COMPANY LOST MONEY ON SKIING BUT SURVIVED THROUGH LAND SALES THEN IN 1984 LAND SALES PLUMMETED LOSSES MUSHROOMED TO 15 MILLION AND MR WALTON NEEDED SOLUTIONS FIRST HE HIRED A PROFESSIONAL MANAGER FOR THE RESORT TURNING TO MR CALLAWAY'S SON EDWARD A MCKINSEY & CO CONSULTANT THEN STUDYING A REPORT ABOUT SIMILAR PROBLEMS AT SUN VALLEY SKI RESORT IN IDAHO HE ZEROED IN ON CRESTED BUTTE'S BIGGEST SHORTCOMING ACCESS CRESTED BUTTE WASN'T LIKELY TO MAKE A FORTUNE OFF SURROUNDING GUNNISON COUNTY A RUGGED RANCHING AND MINING AREA WITH ONLY 10000 RESIDENTS AND THE REMOTE RESORT IS A FIVEHOUR DRIVE FROM DENVER SO IN MID1985 CRESTED BUTTE WENT TO AMERICAN AIRLINES AND BEGGED FOR DIRECT AIR SERVICE FROM MAJOR CITIES TO GET IT THE RESORT HAD TO GUARANTEE AMERICAN A 15 PROFIT WE WERE CONFIDENT SAYS EDWARD CALLAWAY WE WERE ALSO WRONG BY JANUARY 1986 AMERICAN WAS LOSING MONEY ON THE FLIGHTS MR CALLAWAY PROMPTLY CANCELED MONEYLOSING ROUTES FROM LOS ANGELES AND HOUSTON EVEN THOUGH HIS WIFE AND CHILDREN WERE BOOKED ON ONE OF THEM THAT DAY TO FILL FLIGHTS FROM DALLAS AND CHICAGO HE SENT A LETTER TO PAST CUSTOMERS THERE THAT STARTED HELP THE LETTER OFFERED ONEWEEK PACKAGES WITH AIRFARE LODGING AND LIFT TICKETS FOR ONLY 199 MOST OF THE MONEY WENT DIRECTLY TO THE AIRLINE FOR THE SEATS BUT THE OFFER BROUGHT IN ENOUGH RESPONSES A 10 ACCEPTANCE RATE TO KEEP AMERICAN INTERESTED IN FLIGHTS FOR THE NEXT SEASON THAT FIRST YEAR THE RESORT LOST ABOUT 1 MILLION ON THE FLIGHT GUARANTEES INCREASING THE RESORT'S TOTAL LOSSES TO ABOUT 2 MILLION BUT IT PLUNGED AHEAD SIGNING UP WITH AMERICAN FOR ANOTHER YEAR IN THE MEANTIME MR CALLAWAY CREATED A SYSTEM TO TRACK RESERVATIONS FOR 12 DIFFERENT PERIODS OF THE YEAR IN 64 SEPARATE MARKETS IF RESERVATIONS FROM TULSA FOR THE WEEK BEFORE CHRISTMAS FELL BELOW EXPECTATIONS A PROMOTION COULD BE TARGETED AT TULSA SKIERS THROUGH DIRECT MAIL AND RADIO ADS IF SALES WERE UP THE RESORT COULD RAISE PACKAGE PRICES IN THAT MARKET MR CALLAWAY ALSO STRENGTHENED THE RESORT'S MARKETING EFFORTS BY HIRING JOHN NORTON AN OLD SCHOOL BUDDY AWAY FROM PROCTOR & GAMBLE TO RUN MARKETING FORMING A GROUP SALES UNIT AND SENDING SALESMEN TO TALK TO TRAVEL AGENCIES THE NEW MARKETING EFFORT FOCUSED ON CRESTED BUTTE'S FUNKY CHARACTER AND REAL WESTERN SETTING HEAVEN FORBID WE SHOULD EVER BECOME LIKE ASPEN OR VAIL THE ADS SAID AND CRESTED BUTTE WHAT ASPEN USED TO BE AND VAIL NEVER WAS BUT LACK OF CAPITAL STILL STRAINED THE RESORT'S ABILITY TO ATTRACT NEW SKIERS WHILE VAIL ASPEN AND KEYSTONE OPENED THEIR SEASONS BRAGGING ABOUT NEW LIFTS NEW RESTAURANTS AND NEW TERRAIN BOB GILLEN CRESTED BUTTE'S NEW PUBLIC RELATIONS DIRECTOR SAYS HE HAD NOTHING TO TALK ABOUT BUT A NEW HOBART CHEESE SLICER FOR THE KITCHEN IN 1987 HE WENT TO EDWARD CALLAWAY AND BEGGED FOR NEW TERRAIN THE ONLY LAND AVAILABLE HAD SEVERE ROCKY SLOPES THAT WERE CLASSIFIED AS EXTREME AND COULD BE NAVIGATED BY ONLY ABOUT 10 OF SKIERS BUT MR GILLEN OFFERED TO USE HIS OWN MARKETING BUDGET TO PAY FOR A NEW CHEAPTOBUILD SURFACE LIFT FOR THE NEW 400ACRE AREA AND HE GOT IT THE NEW TERRAIN GAVE THE RESORT CACHET HUGE SIGNS WERE PUT UP WARNING OF THE SLOPE'S TOUGHNESS IN FIVE LANGUAGES NEW ADS COMPARED CRESTED BUTTE'S HUGE EXTREME TERRITORY WITH MUCH SMALLER EXTREME OFFERINGS AT ASPEN SNOWMASS AND VAIL ADDING A NOTATION THAT ASPEN'S AREAS ALL HAD EXTREME PRICING BY THE 198889 SEASON THE RESORT WAS MAKING A 250000 PROFIT AND BY 199091 THE PROFIT WAS 13 MILLION BUT CRESTED BUTTE WAS STILL LOSING MONEY BETWEEN THANKSGIVING AND CHRISTMAS SO MR NORTON MADE AN UNUSUAL OFFER FREE SKIING BETWEEN THE HOLIDAYS IF LODGING AND RESTAURANT OWNERS IN CRESTED BUTTE WOULD VOLUNTARILY GIVE THE RESORT SOME REVENUE FROM CUSTOMERS WHO CAME TO SKI FREE THE SKI AREA MIGHT COME OUT AHEAD MANAGEMENT REASONED SKIERS RESPONDED IN DROVES LODGING FROM THANKSGIVING WEEKEND TO CHRISTMAS IS NOW BOOKED SOLID WITH 9000 SKIERS JAMMING SLOPES DESIGNED FOR ABOUT 6500 ON THE BUSIEST DAYS THE RESORT NO LONGER LOSES MONEY THROUGH THE PERIOD AND OVERALL IT MADE ABOUT 15 MILLION IN THE 19921993 SEASON MOREOVER SAYS STEPHEN SCOTT THE MARKETING VICE PRESIDENT THE PROGRAM HAS INCREASED AWARENESS OF CRESTED BUTTE AMONG SKIERS TO 90 FROM 10 ACCORDING TO THE RESORT'S SURVEYS THE PROGRAM HAS ALSO HELPED PAY FOR A NEW FOURPERSON CHAIRLIFT THE FIRST OF THREE OR FOUR NEW LIFTS THE RESORT HAS PLANNED WE'LL HAVE A MODERN MOUNTAIN IN TWO YEARS MR CALLAWAY PROMISES NOW IN SPITE OF ITS SIZE CRESTED BUTTE HAS BECOME ONE OF THE NATION'S MOST COPIED SKI RESORTS SAYS MR JONES THE CONSULTANT JACKSON HOLE AND STEAMBOAT MIMICKED ITS AIRLINE GUARANTEE PROGRAM SEVERAL RESORTS ADDED EXTREME TERRITORY MUCH OF IT RATHER SEDATE COMPARED WITH CRESTED BUTTE'S AND WHILE SKI FREE ISN'T CATCHING ON SEVERAL RESORTS NOW OFFER HALFPRICE TICKETS FROM THANKSGIVING TO CHRISTMAS MEANWHILE CRESTED BUTTE'S NEW PUSH WILL IMPROVE SERVICE MR CALLAWAY SAYS HE PLANS TO USE NEW CARDBASED LIFTTICKET TECHNOLOGY TO TRACK CUSTOMERS AS THEY SKI CHECK INTO THEIR ROOMS AND BUY DINNER THAT WILL LEAD TO THE KIND OF SERVICE ONLY A SMALL AREA CAN GIVE HE SAYS WE HAVE TO SURVIVE AS A NICHE PLAYER EXPLAINS MR SCOTT THE MARKETING VICE PRESIDENT WITH THE MERGERS THE BIG ARE GETTING BIGGER WE CAN MARKET OURSELVES AGAINST THE SIZE OF THEIR RESORTS 9401200043 940120 BUSINESS BRIEF MATHSOFT INC FISCAL SECONDQUARTER LOSS OF 17 MILLION TO BE POSTED MATHSOFT INC WILL POST A WIDERTHANEXPECTED LOSS ON A 14 INCREASE IN SALES FOR ITS SECOND QUARTER ENDED DEC 30 ACCORDING TO PRESIDENT DAVID A BLOHM MR BLOHM ALSO GAVE DETAILS ABOUT MAJOR PRODUCT AND PRICING CHANGES AND SAID THAT THE CAMBRIDGE MASS SOFTWARE MAKER IS EXAMINING COSTS IN EVERY AREA OF THE BUSINESS TO RESTORE PROFITABILITY MATHSOFT WILL REPORT A LOSS OF ABOUT 17 MILLION OR 24 CENTS TO 26 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 317000 OR FIVE CENTS A SHARE ON FEWER SHARES ANALYSTS HAD EXPECTED A SECONDQUARTER LOSS OF 16 CENTS TO 17 CENTS A SHARE REVENUE CLIMBED TO ABOUT 64 MILLION FROM 56 MILLION IN THE YEAREARLIER PERIOD MR BLOHM SAID THE RISE MAY DISAPPOINT INVESTORS WHO'VE BEEN ACCUSTOMED TO SHARPLY HIGHER GROWTH RATES RECENTLY MATHSOFT'S CORE PRODUCT IS MATHCAD A POWERFUL SOFTWARE PROGRAM FOR ENGINEERS SCIENTISTS AND STUDENTS 9401200042 940120 INTERNATIONAL BRIEF FIAT SPA FORMER PREMIER QUESTIONED IN PROBE OF ALFA ROMEO SALE ROME PROSECUTORS HAVE QUESTIONED FORMER PRIME MINISTER GIULIANO AMATO IN AN INVESTIGATION INTO FIAT SPA'S 1987 ACQUISITION OF ALFA ROMEO FROM FINMECCANICA SPA ACCORDING TO ITALIAN NEWS REPORTS PROSECUTORS ARE LOOKING INTO WHETHER POLITICIANS MAY HAVE UNFAIRLY FAVORED THE FIAT BID OVER FORD MOTOR CO'S RIVAL BID FORMER PRIME MINISTER BETTINO CRAXI WHO WAS PRIME MINISTER AT THE TIME OF THE ALFA ROMEO SALE WAS ALSO QUESTIONED BY ROME MAGISTRATES LAST WEEK THE NEWS REPORTS SAID MR AMATO WAS A SENIOR OFFICIAL IN MR CRAXI'S GOVERNMENT REPRESENTATIVES OF ONE AUTO WORKERS' UNION RECENTLY ALLEGED THAT FORD'S 1986 OFFER WAS MORE FAVORABLE BUT THAT FIAT WAS CHOSEN INSTEAD IN A POLITICAL DEAL ALFA ROMEO IS INVOLVED IN LABOR NEGOTIATIONS OVER LAYOFFS AND WORKERS HAVE TAKEN TO THE STREETS IN PROTEST MR AMATO REPORTEDLY TOLD PROSECUTORS THAT THE ALFA ROMEO BIDS WEREN'T DISCUSSED BY THE CABINET ACCORDING TO REPORTS PROSECUTORS HAVE ASKED THE COURT FOR PERMISSION TO QUESTION FORD EXECUTIVES 9401200041 940120 BUSINESS BRIEF MICHIGAN NATIONAL CORP FOURTHQUARTER NET ROSE TO 326 MILLION CUTS SET MICHIGAN NATIONAL CORP REPORTED NET INCOME FOR THE FOURTH QUARTER OF 326 MILLION OR 213 A SHARE AND ANNOUNCED A COSTCUTTING DRIVE THAT INCLUDES SHUTTING BANK BRANCHES AND ELIMINATING JOBS THE BANK HOLDING CONCERN'S PROFIT INCLUDED A 78 MILLION GAIN FROM THE SALE OF MORTGAGE SERVICING RIGHTS A YEAR EARLIER IT EARNED 119 MILLION OR 78 CENTS A SHARE WE'VE GOT A COST BASE HERE WE CAN'T AFFORD AND WE'VE GOT TO CHANGE IT SAID DOUGLAS E EBERT MICHIGAN NATIONAL'S PRESIDENT AND CHIEF OPERATING OFFICER THE CONCERN BASED IN FARMINGTON HILLS MICH PLANS TO REDUCE ITS OPERATING EXPENSES BY 20 MILLION THIS YEAR IT WILL ELIMINATE 80 JOBS AND CLOSE ABOUT 12 BANK BRANCHES IN MICHIGAN IT WILL ALSO DECIDE WHETHER TO SHED OPERATIONS IN CALIFORNIA AND TEXAS SAID ROBERT J MYLOD CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR THE FULL YEAR NET FELL TO 238 MILLION OR 156 A SHARE FROM 598 MILLION OR 396 A SHARE A YEAR EARLIER 9401200040 940120 SOUTHERN CALIFORNIA EARTHQUAKE GOV WILSON PUTS COST OF EARTHQUAKE IN LOS ANGELES AS HIGH AS 30 BILLION BY THOMAS R KING AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES CALIFORNIA DISASTER AUTHORITIES SAID DAMAGES FROM MONDAY'S EARTHQUAKE CONSERVATIVELY COULD RANGE FROM 15 BILLION TO 30 BILLION AN ESTIMATE FAR HIGHER THAN MOST EXPERTS HAD SUGGESTED IF DAMAGES REACH THE HIGHER END OF THE FIRST OFFICIAL ESTIMATE FROM GOV PETE WILSON'S OFFICE THEY WOULD APPROACH THE 30 BILLION COST OF HURRICANE ANDREW THE 1992 DISASTER IN FLORIDA AND LOUISIANA THAT RANKS AS THE NATION'S COSTLIEST SO FAR THE STAGGERING CALIFORNIA ESTIMATE COMING EVEN AS A SENSE OF NORMALCY BEGAN TO RETURN DESPITE THE CONTINUING AFTERSHOCKS HERE WAS CONTAINED IN AN APPEAL BY GOV WILSON TO PRESIDENT CLINTON THE PRESIDENT TOURED THE QUAKEHIT REGION YESTERDAY AND CONDUCTED A TOWN MEETING IN BURBANK JUST SOUTHEAST OF THE TEMBLOR'S NORTHRIDGE EPICENTER IN THE SAN FERNANDO VALLEY AT THE MEETING PRESIDENT CLINTON ANNOUNCED 140 MILLION IN FEDERAL FUNDS AS THE FIRST INSTALLMENT OF RELIEF MONEY THIS INCLUDED 45 MILLION TO CLEAN UP DEBRISFILLED STREETS AND START REPAIRS AND 95 MILLION IN LOANS TO SMALL BUSINESSES DAMAGED BY THE EARTHQUAKE BUT THE PRESIDENT WARNED THAT KEY WAIVERS OF REQUIREMENTS FOR LOCAL MATCHING FUNDS COULDN'T BE DECIDED UNTIL BETTER DAMAGECOST ESTIMATES WERE AVAILABLE HOUSING SECRETARY HENRY CISNEROS CAUTIONED THAT IT SEEMS TO US THAT THE CRESTING OF THE HOUSING PROBLEM IS STILL AHEAD PRELIMINARY ESTIMATES INDICATED THAT MORE THAN 4000 DWELLINGS WERE DAMAGED OR DESTROYED PRESIDENT CLINTON HAD THIS PROMISE FOR QUAKE VICTIMS WE WILL STAY WITH YOU UNTIL THIS JOB IS FINISHED THE QUAKE WHICH MEASURED 66 ON THE RICHTER SCALE WAS THE WORST DISASTER IN LOS ANGELES HISTORY BASED ON CASUALTIES WHICH TOTALED MORE THAN 4300 DEAD AND INJURED LOCAL AUTHORITIES SAID THE DEATH TOLL YESTERDAY ROSE TO 46 STILL BELOW THE 58 KILLED IN THE 1971 QUAKE IN SYLMAR JUST NORTHEAST OF NORTHRIDGE ABOUT 52000 INDIVIDUALS AND BUSINESSES STILL WERE WITHOUT ELECTRICITY YESTERDAY WITH 40000 LACKING WATER AND 35000 LACKING NATURAL GAS THE STATE DAMAGE ESTIMATE WAS BASED ON A COMPUTER MODEL DEVISED BY EQE INTERNATIONAL INC A SAN FRANCISCO CONSULTING FIRM EQE IN A SEPARATE STATEMENT ESTIMATED OVERALL DAMAGES AT 151 BILLION THE LOWER END OF THE STATE'S RANGE OF THE TOTAL RESIDENTIAL DAMAGE WAS ESTIMATED TO BE 58 BILLION WITH COMMERCIAL DAMAGE 37 BILLION INDUSTRIAL DAMAGE 15 BILLION AND THE REST IN OTHER DAMAGES EQE SAID IT ESTIMATED INSURED LOSSES AT 15 BILLION TO 19 BILLION KEVIN ECKERY THE GOVERNOR'S DEPUTY PRESS SECRETARY SAID THE UPPER END OF THE RANGE CAME FROM THE STATE OFFICE OF EMERGENCY SERVICES WHICH HAS LONG EXPERIENCE IN CALCULATING DISASTER COSTS HE SAID THE RANGE IS A VERY VERY ROUGH ESTIMATE EQE'S MODEL RELIES ON SUCH FACTORS AS KNOWN FAULT LINES AND THE SEISMIC HISTORY OF THE REGION BUT DOESN'T REFLECT ACTUAL INSPECTION OF THE DEVASTATED AREA IN HIS PLEA GOV WILSON ASKED PRESIDENT CLINTON TO FOLLOW THE PRECEDENT ESTABLISHED AFTER HURRICANE ANDREW AND HAWAII'S 1992 HURRICANE INIKI IN THOSE DISASTERS HE SAID 100 OF THE PUBLIC ASSISTANCE COSTS WERE COVERED BY FEDERAL DISASTER AID WITHOUT FULL FUNDING STATE AND LOCAL GOVERNMENTS WOULD BE REQUIRED TO PAY 25 OF THE COSTS LOS ANGELESAREA COMMUTERS YESTERDAY STRUGGLED TO GET TO WORK AS MOST LARGE BUSINESSES OPENED FOR THE FIRST TIME SINCE THE QUAKE WITH SIX MAJOR BREAKS IN THE AREA'S SPRAWLING FREEWAY SYSTEM MANY DRIVERS WERE FORCED TO USE CAR POOLS TRAINS OR BUSES ONE MAN SAID A COMMUTE THAT LAST WEEK TOOK 45 MINUTES YESTERDAY TOOK FOUR HOURS THE CITY'S NEW METROLINK TRAIN SERVICE CONNECTING AREAS NORTH OF THE QUAKE ZONE TO DOWNTOWN LOS ANGELES OPERATED AT CAPACITY EVEN AFTER ADDING FIVE CARS TO ITS USUAL THREECAR TRAINS THE SUPERINTENDENT OF THE LOS ANGELES UNIFIED SCHOOL DISTRICT ANNOUNCED THAT SCHOOLS WILL REMAIN CLOSED THROUGH THE END OF THIS WEEK BUT DOZENS OF SCHOOLS IN THE SAN FERNANDO VALLEY MAY NOT REOPEN FOR SEVERAL WEEKS THE SUPERINTENDENT SAID AS SEISMOLOGISTS AND ENGINEERS REVIEWED UPDATED MEASUREMENTS OF THE QUAKE MANY WERE AMAZED AT THE VIOLENCE OF THE VERTICAL SHAKING OF AREA HIGHWAYS ACCORDING TO THE US GEOLOGICAL SURVEY MEASUREMENTS OF STRESS ON ONE COLLAPSED OVERPASS NEAR THE EPICENTER REACHED AN INDICATED 23 TIMES THE FORCE OF GRAVITY EVEN MORE THAN 15 MILES TO THE SOUTH INSTRUMENTS EMBEDDED IN A PORTION OF THE SANTA MONICA FREEWAY MEASURED THE UPWARD ACCELERATION OF THE ROADBED AT 18 TIMES THE FORCE OF GRAVITY SUCH GFORCES AS THEY ARE CALLED ARE COMPARABLE TO THE ACCELERATION EXPERIENCED BY FIGHTER PILOTS MAKING VIOLENT MANUEVERS THE VIOLENCE OF THE QUAKE COULD PROMPT MANY OWNERS OF PLANTS SHOPPING CENTERS AND OTHER COMMERCIAL BUILDINGS TO INVEST IN UPGRADING FACILITIES TO BETTER WITHSTAND SUCH FORCES SINCE EARTHQUAKE INSURANCE RATES ARE EXPECTED TO CONTINUE TO RISE SOME BUSINESSES MAY FIND SUCH LONGTERM INVESTMENTS MORE ECONOMICAL 9401200039 940120 BUSINESS BRIEF SMITH CORONA CORP EARNINGS TUMBLED BY 63 IN THE FISCAL SECOND QUARTER SMITH CORONA CORP SAID EARNINGS DECLINED 63 IN THE FISCAL SECOND QUARTER TO 15 MILLION OR FIVE CENTS A SHARE FROM 4 MILLION OR 13 CENTS A SHARE REVENUE IN THE QUARTER WHICH ENDED DEC 31 ROSE 8 THE COMPANY SAID THE COMPANY'S STOCK PRICE TUMBLED 625 CENTS OR 96 TO CLOSE AT 5875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SMITH CORONA THE NEW CANAAN CONN MANUFACTURER OF TYPEWRITERS AND PERSONAL WORD PROCESSORS SAID INCREASED PRESSURE ON WHOLESALE SELLING PRICES AND UNFAVORABLE FOREIGN CURRENCY EXCHANGE CONTRIBUTED TO THE DECLINE IN PROFIT EVEN THOUGH SALES AND UNIT SHIPMENTS WERE UP FROM THE PREVIOUS YEAR SALES WERE 936 MILLION COMPARED WITH 867 MILLION A YEAR EARLIER THE COMPANY SAID IT WILL RELOCATE ITS MANUFACTURING OPERATIONS FROM CORTLAND NY TO MEXICO BY THE END OF MARCH BUT IT DOESN'T EXPECT TO REALIZE COST SAVINGS DURING THIS FISCAL YEAR ENDING IN JUNE 9401200038 940120 POLITICS & POLICY SENATE SUBCOMMITTEE LEADERS CRITICIZE ADMINISTRATION HANDLING OF RUSSIA AID BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN EARLY SIGN OF CONGRESSIONAL DISCONTENT WITH PRESIDENT CLINTON'S RUSSIA POLICY TWO KEY SENATORS ARE CRITICIZING THE ADMINISTRATION'S MANAGEMENT OF THE MULTIBILLIONDOLLAR RUSSIAN AID PROGRAM IN A LATEDECEMBER LETTER TO SECRETARY OF STATE WARREN CHRISTOPHER SEN PATRICK LEAHY D VT CHAIRMAN OF THE SENATE FOREIGN OPERATIONS SUBCOMMITTEE AND THE PANEL'S RANKING REPUBLICAN KENTUCKY SEN MITCH MCCONNELL CHARGED THAT THE AID PROGRAM LACKS A COHERENT STRATEGY OR CONCEPTUAL FRAMEWORK AND THEY CALLED ON THE ADMINISTRATION TO MAKE NO NEW COMMITMENTS OF FUNDS UNTIL IT DEFENDS THE PROGRAM IN HEARINGS SCHEDULED FOR EARLY NEXT WEEK THE HEARINGS ARE ALSO EXPECTED TO RAISE QUESTIONS ABOUT THE WORKINGS OF SPECIFIC AID PROJECTS SEN MCCONNELL HAS PRIVATELY CHARGED THAT ONE A 190 MILLION HOUSINGRESETTLEMENT PROGRAM FOR RUSSIAN MILITARY OFFICERS REFLECTED POTENTIALLY ILLEGAL ACTIONS IN AN EARLIER LETTER TO SEN LEAHY MR MCCONNELL CHARGED THAT ADMINISTRATION AIDES TOLD THE SUBCOMMITTEE THAT THEY PLANNED TO GO ALONG WITH THE DEMANDS OF RUSSIAN MUNICIPAL OFFICIALS IN EIGHT CITIES THAT A PERCENTAGE OF ALL HOUSES BUILT FOR OFFICERS RETURNING FROM THE BALTIC REPUBLICS BE GIVEN TO THEIR OWN POLITICAL CRONIES OR CONSTITUENTS SOME MIGHT ARGUE THIS AMOUNTS TO EXTORTION MR MCCONNELL WROTE IN THE LETTER PRESIDENT CLINTON ACCORDING TO AIDES RAISED THE ISSUE IN HIS RECENT SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN THE SENATORS ARE ALSO EXPECTED TO QUESTION WHY A HALFDOZEN HIGHPOWERED US CONSULTING FIRMS ARE GETTING THE LION'S SHARE OF TECHNICALASSISTANCE CONTRACTS VALUED AT MILLIONS OF DOLLARS UNTIL NOW THE ADMINISTRATION'S REQUESTS FOR RUSSIAN AID HAVE BREEZED THROUGH CONGRESS THESE QUESTIONS COME AT A PARTICULARLY TOUGH TIME FOR THE ADMINISTRATION AND STROBE TALBOTT WHO IS MR CLINTON'S TOP ADVISER ON RUSSIAN AFFAIRS AND WAS RECENTLY NOMINATED TO THE NO 2 JOB AT THE STATE DEPARTMENT MR TALBOTT HAS BEEN CRITICIZED FOR FAILING TO PREDICT THE STRONG SHOWING OF RUSSIAN FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS AND ANY PERCEIVED PROBLEMS WITH THE RUSSIAN AID PROGRAM COULD CLOUD HIS CONFIRMATION HEARINGS THE FOREIGN OPERATIONS SUBCOMMITTEE IS ONE OF FOUR CONGRESSIONAL COMMITTEES THAT MUST SIGN OFF ON SPECIFIC AID PROJECTS BEFORE ANY MONEY IS COMMITTED THE FOUR COMMITTEES HAVE ALREADY CLEARED ABOUT 1 BILLION IN NEW BILATERAL AID PROJECTS OF A TOTAL 25 BILLION PREVIOUSLY APPROPRIATED FOR RUSSIA AND THE FORMER SOVIET UNION IN FISCAL 1994 THE SUBCOMMITTEE'S OBJECTIONS AREN'T EXPECTED TO SLOW DOWN ANY DISBURSEMENTS IN THEIR LETTER HOWEVER SENS LEAHY AND MCCONNELL SUGGESTED THAT THEIR RECENT APPROVAL OF THE FIRST SET OF PROJECTS WAS GIVEN IN RECOGNITION OF THE URGENCY OF SOME OF THE PROGRAMS AS WELL AS OUR DESIRE NOT TO CAUSE DIFFICULTIES DURING MR CLINTON'S SUMMIT MEETING RATHER THAN ANY SATISFACTION WITH THE DESIGN OR MANAGEMENT OF THE PROJECT MR TALBOTT SAID HE WILL TRY TO CONVINCE THE SENATORS THAT THE POLICY IS POINTED IN THE RIGHT DIRECTION MR TALBOTT AND MR CHRISTOPHER HAVE SPENT SEVERAL HOURS THIS WEEK IN MEETINGS WITH SEN LEAHY TRYING TO HEAD OFF ANY CONFRONTATION AT THE HEARING MR LEAHY SAID WE HAVEN'T RAISED THESE ISSUES TO BEAT UP ON ANYBODY I JUST WANT TO MAKE SURE THAT SOMEBODY'S GOT THE LONGTERM GOALS IN VIEW PRESIDENT CLINTON'S STRONG PERSONAL COMMITMENT TO PRESIDENT YELTSIN MAY ALSO BE CRITICIZED AT THE HEARINGS MR LEAHY IS ALSO EXPECTED TO URGE ADMINISTRATION OFFICIALS TO REFOCUS AID PROGRAMS TO TAKE INTO ACCOUNT THE RISING HUMAN COST TO ORDINARY RUSSIANS SQUEEZED BY ECONOMIC REFORMS ADMINISTRATION OFFICIALS AGREE THAT MORE EMPHASIS SHOULD BE PUT INTO CRAFTING A SOCIAL SAFETY NET IN RUSSIA BUT THEY INSIST THAT US BILATERAL AID CANNOT PAY FOR SUCH A PROGRAM INSTEAD THE ADMINISTRATION IS LOBBYING STILLSKEPTICAL INTERNATIONAL LENDING AGENCIES TO COME UP WITH MORE SOCIAL SPENDING FOR RUSSIA 9401200037 940120 COLUMBIA GAS UNIT FILES TO REORGANIZE CREDITORS GRUMBLE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COLUMBIA GAS SYSTEM INC'S MAIN PIPELINE SUBSIDIARY FILED A LONGAWAITED REORGANIZATION PLAN BUT CREDITOR GROUPS INCLUDING CRUCIAL NATURAL GAS SUPPLIERS SAID THE PLAN FELL WOEFULLY SHORT OF THEIR DEMANDS UNDER THE CHAPTER 11 REORGANIZATION PLAN FILED IN US BANKRUPTCY COURT IN WILMINGTON DEL COLUMBIA GAS SYSTEM'S MAIN PIPELINE UNIT COLUMBIA GAS TRANSMISSION CORP IS PROPOSING TO PAY 900 MILLION TO SETTLE CLAIMS BY GAS SUPPLIERS THE COMPANY'S HUGE OBLIGATIONS FROM ABOVEMARKETPRICED GAS SUPPLY CONTRACTS DROVE IT TO MAKE THE CHAPTER 11 FILING IN MID1991 TO FORCE A RENEGOTIATION OF THE CONTRACTS COLUMBIA GAS SAYS IT EXPECTS A COURTAPPOINTED MEDIATOR WILL RECOMMEND VALUING THE CONTRACT CLAIMS AT ABOUT 113 BILLION HOWEVER NATURAL GAS PRODUCERS INCLUDING SOME OF THE NATION'S LARGEST OIL AND GAS COMPANIES HAVE VALUED THE CLAIMS AT 10 BILLION TO 13 BILLION THUS COLUMBIA'S REORGANIZATION PROPOSAL IS FAR SHORT OF THEIR ESTIMATES AND IS LIKELY TO LEAD TO FURTHER LEGAL DELAYS IN RESOLVING THE CHAPTER 11 PROCEEDING THE STOCK MARKET NONETHELESS VIEWED THE PROPOSAL POSITIVELY COLUMBIA GAS SHARES ROSE 3125 OR 14 TO 2625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PROPOSAL AS IT RELATES TO PRODUCERS IS SIMPLY NOT CLOSE TO REALITY SAID JOHN AIREY AN ATTORNEY REPRESENTING A COMMITTEE COMPRISED OF HUNDREDS OF GAS PRODUCERS IN THE APPALACHIAN AREA WHO PUT THEIR CLAIMS AGAINST COLUMBIA AT MORE THAN 7 BILLION IT'S SIMPLY A CONTINUING EFFORT BY COLUMBIA TO NOT PAY THE VALUE OF THE CLAIMS IN ITS FILING COLUMBIA GAS TRANSMISSION PROPOSED PAYING 100 CENTS ON THE DOLLAR FOR ABOUT 175 BILLION IN SECURED CLAIMS AND INTEREST HELD BY THE PARENT COMPANY AND 28 MILLION IN TAX TO THE INTERNAL REVENUE SERVICE AMONG UNSECURED CREDITORS THE COMPANY PROPOSES PAYING 900 MILLION IN SETTLEMENT OF GAS SUPPLIER CONTRACTS PLUS ABOUT 650 MILLION FOR OTHER UNSECURED CLAIMS INCLUDING 300 MILLION OWED TO THE PARENT THE 33 BILLION DISTRIBUTION IS BASED ON AN ESTIMATED VALUE FOR THE COMPANY OF 31 BILLION AS WELL AS A PROPOSAL BY THE PARENT TO INJECT 200 MILLION IN CASH OR STOCK INTO THE UNIT THE UNSECURED CREDITORS COMMITTEE WHICH ALSO OPPOSES THE PLAN WANTS ABOUT 175 BILLION IN DEBT OWED BY THE UNIT TO THE PARENT CONVERTED INTO EQUITY WHICH WOULD MAKE IT SUBORDINATE TO THE UNSECURED CREDITORS' DEBT THE COMMITTEE ALSO WANTS THE PARENT TO RETURN 500 MILLION IN VARIOUS PAYMENTS MADE BY THE UNIT AND RETURN MILLIONS OF DOLLARS OF OIL AND GAS PROPERTIES WHICH HAD BEEN TRANSFERRED OUT OF COLUMBIA GAS TRANSMISSION ALTHOUGH THE PRODUCER CLAIMS HAVE BEEN THE KEY TO THE BANKRUPTCYLAW PROCEEDING THE UNSECURED CREDITORS CLAIMS HAVE PROVED A SERIOUS STICKING POINT COLUMBIA HAS PROPOSED TO SETTLE THEM FOR ABOUT 200 MILLION AND HAS ALSO AGREED TO DISCHARGE CERTAIN POTENTIALLY EXPENSIVE ENVIRONMENTAL CLAIMS THE FILING ASSUMES THE CHAPTER 11 PROCEEDING WILL WIND UP JUNE 30 BUT COLUMBIA SAID THE ACTUAL DATE WILL DEPEND ON A NUMBER OF PENDING LEGAL STEPS AND REQUIRED APPROVALS REORGANIZATION EXPENSES ARE EXPECTED TO TOTAL ABOUT 66 MILLION BY MID1994 COLUMBIA SAID THE PARENT'S REORGANIZATION PLAN WILL BE FILED AT A LATER DATE AND THE COMPANIES EXPECT TO EMERGE FROM CHAPTER 11 PROTECTION SIMULTANEOUSLY 9401200036 940120 FOREIGN EXCHANGE DOLLAR GAINS AGAINST YEN AND EASES IN RELATION TO MARK ON RATECUT OUTLOOK BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAINED AGAINST THE YEN YESTERDAY AS PROMISING TRADE FIGURES AND A FRESH TRADE AGREEMENT KINDLED OPTIMISM THAT THE US WOULD ACCEPT A SOFTER YEN IN RETURN FOR JAPAN OPENING ITS DOMESTIC MARKET TO US PRODUCTS HOWEVER THE DOLLAR EASED AGAINST THE MARK AS TRADERS BET THAT THE BUNDESBANK WON'T CUT ITS KEY INTEREST RATES AT ITS POLICYMAKING MEETING TODAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17460 MARKS OFF FROM 17465 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11135 YEN UP FROM 11075 YEN STERLING WAS TRADING AT 14925 DOWN FROM 14960 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11143 YEN AND AT 17466 MARKS THE DOLLAR DROPPED IN ASIAN TRADING TO AN INTRADAY LOW OF 11028 YEN FOLLOWING COMMENTS BY US TREASURY SECRETARY LLOYD BENTSEN CRITICAL OF THE SLOW PACE OF USJAPAN TRADE TALKS BUT THE US CURRENCY THEN BEGAN TO TAKE OFF AFTER US COMMERCE DEPARTMENT DATA SHOWED NOVEMBER'S TRADE GAP WITH JAPAN NARROWED TO 572 BILLION FROM 609 BILLION IN OCTOBER IN ADDITION THE OVERALL NOVEMBER MERCHANDISE TRADE DEFICIT WAS 1017 BILLION A CUT BENEATH THE MARKET FORECAST OF 1051 BILLION TRADERS SAID THE DOLLAR GAINED MORE MUSCLE AFTER THE CLINTON ADMINISTRATION EXTOLLED A JAPANESE PLAN TO OPEN ITS CONSTRUCTION MARKET TO US COMPANIES THE GOVERNMENT OF JAPAN HAS ADDRESSED ALL THE MAJOR US CONCERNS SAID US TRADE REPRESENTATIVE MICKEY KANTOR IN VOICING APPROVAL OF THE PACT THE STATEMENT PROVED NOTEWORTHY BECAUSE MUCH OF THE DOLLAR'S RECENT SLIDE AGAINST THE YEN WAS PREDICATED ON TOUGH US TALK OVER THE STATE OF THE TRADE TALKS WHICH TRIGGERED FEARS THAT THE US WOULD AGAIN PRESS FOR A STRONGER YEN AS A WAY TO NARROW THE TRADE GAP TRADERS TOOK FURTHER COMFORT ON REPORTS OF MR BENTSEN'S SCHEDULED WEEKEND MEETING WITH JAPANESE FINANCE MINISTER HIROHISA FUJII AGREEING IT COULD EASE THE WAY FOR THE REMAINING UNRESOLVED TRADE ISSUES THE MARKET IS NOW BEGINNING TO REALIZE THAT THERE ARE SIGNS OF IMPROVING US TRADE RELATIONS WITH JAPAN SAID RICH SHIMOKAWA VICE PRESIDENT FOREIGN EXCHANGE FOR SUMITOMO BANK LTD IN NEW YORK BUT MR SHIMOKAWA ALSO NOTED PRESSURE STILL REMAINS FOR A COMPLETE RESOLUTION BY THE FEB 11 DEADLINE WHEN PRIME MINISTER MORIHIRO HOSOKAWA IS SCHEDULED TO VISIT THE US FOR TALKS WITH PRESIDENT CLINTON THERE IS STILL TOO MUCH DISTANCE MR SHIMOKAWA SAID THE CONSTRUCTION AGREEMENT SIGNIFIES PROGRESS BUT THE MAIN FOCUS SHOULD BE ON SEMICONDUCTORS AND CARS INDEED US NEGOTIATORS DEMANDED THAT JAPAN TAKE EMERGENCY STEPS TO INCREASE FOREIGNERS' SHARE IN THE JAPANESE SEMICONDUCTOR MARKET ADDING THAT JAPAN IS FAILING TO MEET THE GOALS AGREED IN A 1991 PACT BUT TOKYO SAID NO ACTION IS NECESSARY INSISTING THAT US CHIP MAKERS ARE GENERALLY SATISFIED WITH THEIR ACCESS TO JAPAN TRADERS NEVERTHELESS SAW THE PROGRESS IN USJAPAN TRADE ISSUES AS A REASON TO RETURN TO MORE BASIC MARKET FACTORS SUCH AS THE WEAKNESS OF JAPAN'S ECONOMY IN DETERMINING THE DOLLAR'S DIRECTION AGAINST THE YEN THE DOLLAR HAD BEEN IN A MEDIUMTERM UPTREND AGAINST THE YEN SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK NOTING THE PROBLEMS FACING THE JAPANESE ECONOMY 9401200035 940120 INTERNATIONAL BRIEF THYSSEN AG STEEL UNIT'S FISCALYEAR LOSS QUADRUPLED TO 7044 MILLION GERMANY'S THYSSEN STAHL AG REPORTED CATASTROPHIC RESULTS FOR ITS YEAR ENDED SEPT 30 BUT SAID IT WOULD RETURN TO PROFITABILITY IN TWO YEARS THE STEELMAKING UNIT OF GERMAN INDUSTRIAL GROUP THYSSEN AG REPORTED A LOSS OF 123 BILLION MARKS 7044 MILLION ITS LARGEST EVER AND FOUR TIMES THE PREVIOUS YEAR'S LOSS ONE CAN ONLY DESCRIBE THE RESULTS AS CATASTROPHIC SAID EKKEHARD SCHULZ THYSSEN STAHL'S CHAIRMAN THE GROUP ADJUSTED FISCAL 1992 RESULTS FOLLOWING THE OCT 1 1992 MERGER OF THYSSEN STAHL AND SPECIALTYSTEEL MANUFACTURER THYSSEN EDELSTAHL PLACING THE COMBINED LOSS AT 306 MILLION MARKS 1752 MILLION SALES IN THE RECENTLY ENDED YEAR DROPPED 15 TO 106 BILLION MARKS FROM A YEAREARLIER ADJUSTED 125 BILLION MARKS REFLECTING BOTH LOWER PRICES AND LOWER VOLUME SALES THE UNIT SAID IN THE FIRST THREE MONTHS OF THE CURRENT FISCAL YEAR SALES DECLINED 7 FROM YEAREARLIER FIGURES TO 25 BILLION MARKS 9401200034 940120 BUSINESS BRIEF AMERITECH CORP FOURTHQUARTER NET JUMPED BY 19 ON INCREASED DEMAND AMERITECH CORP SAID FOURTHQUARTER PROFIT JUMPED 19 FROM THE PRIOR YEAR PARTLY BECAUSE OF THE IMPROVING ECONOMY AND GROWING DEMAND FOR ITS SERVICES THE CHICAGO TELECOMMUNICATIONS COMPANY SAID NET INCOME ROSE TO 3982 MILLION OR 73 CENTS A SHARE FROM 3355 MILLION OR 62 CENTS A SHARE A YEAR EARLIER SALES ROSE 6 TO 302 BILLION FOR THE YEAR NET WAS 151 BILLION OR 278 A SHARE COMPARED WITH A PREVIOUS YEAR'S LOSS OF 4004 MILLION OR 75 CENTS A SHARE THE LOSS INCLUDED A 175 BILLION ACCOUNTING CHARGE FOR RETIREE HEALTH BENEFITS BOTH THE QUARTER AND YEAR PERSHARE EARNINGS WERE ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE DEC 31 THE COMPANY SAID TELEPHONE LINES GREW 33 LAST YEAR TOTALING 176 MILLION LINES WHILE CELLULARSERVICE SALES ROSE 47 TO 860000 CUSTOMERS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AMERITECH SHARES WERE QUOTED AT 78875 UP 375 9401200033 940120 ANTITRUST CHARGE IS USED TO ENFORCE DEFENSEFIRM CODE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BY PRESSING A RARE ANTITRUST CHARGE AGAINST TWO DEFENSE CONTRACTORS THE JUSTICE AND DEFENSE DEPARTMENTS SAID THEY ARE TRYING TO ENFORCE A NEW CODE OF BEHAVIOR FOR COMPANIES COMPETING IN A SHRINKING MARKET FOR WEAPONS IN A NEWS CONFERENCE AT THE PENTAGON YESTERDAY OFFICIALS SAID THE ACTION AGAINST ALLIANT TECHSYSTEMS INC AND AEROJET GENERAL CORP A SUBSIDIARY OF GENCORP INC WAS INTENDED TO SEND A MESSAGE TO DEFENSE CONTRACTORS THAT SOME SOCALLED TEAMING ARRANGEMENTS TO BID ON DEFENSE CONTRACTS ARE ILLEGAL THE TWO COMPANIES WHICH HAD TEAMED UP TO MANUFACTURE CLUSTER BOMBS FOR THE MILITARY AGREED TO A CONSENT DECREE UNDER WHICH THEY WOULD LOWER THE GOVERNMENT'S COST FOR THE 133 MILLION CONTRACT BY A TOTAL OF 12 MILLION REFERRING TO TEAMING ARRANGEMENTS ROBERT LITAN A DEPUTY ASSISTANT ATTORNEY GENERAL FOR THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION EXPLAINED THEY WERE ALLOWABLE AND SOMETIMES NECESSARY FOR COMPANIES TO HANG ON IN A DECLINING MARKET THE ONE BETWEEN ALLIANT AND AEROJET HOWEVER VIOLATED THE SHERMAN ACT BECAUSE IT DIVIDED UP THE MARKET AND CAUSED A DRAMATIC INCREASE IN PRICE HE CHARGED IN A STATEMENT AFTER THE PENTAGON'S NEWS CONFERENCE AEROJET'S PRESIDENT ROGER RAMSEIER OBJECTED TO MR LITAN'S REMARKS THE AGREEMENT BETWEEN THE TWO COMPANIES HE ASSERTED WAS NOT ANTICOMPETITIVE AND IT DID NOT COST THE GOVERNMENT OR THE TAXPAYERS A SINGLE PENNY AEROJET BASED IN SACRAMENTO CALIF AGREED TO THE CONSENT AGREEMENT ACCORDING TO THE COMPANY'S STATEMENT TO AVOID A LENGTHY AND COSTLY LITIGATION WITH THE GOVERNMENT ON THIS MATTER IN A RELEASE LATE YESTERDAY ALLIANT BASED IN EDINA MINN SAID IT REMAINS FIRMLY CONVINCED THAT THE TEAMING ARRANGEMENT WAS AND IS LEGAL AND COMPLIANT WITH GOVERNMENT CONTRACTING AND ANTITRUST LAW AND POLICY THE COMPANY AGREED TO THE CONSENT DECREE ALLIANT ASSERTED ONLY IN ORDER TO AVOID COSTLY LITIGATION UNTIL 1992 THE TWO COMPANIES COMPETED IN SUPPLYING CLUSTER BOMBS TO THE MILITARY IN THE SUMMER OF 1992 HOWEVER THEY TEAMED UP TO PROVIDE A JOINT BID ACCORDING TO JAMIE GORELICK THE PENTAGON'S GENERAL COUNSEL THE BID ACCORDING TO THE US OFFICIALS RAISED THE PRICE OF CLUSTER BOMBS BY MORE THAN 1000 APIECE USED HEAVILY DURING THE GULF WAR CLUSTER BOMBS DAMAGE VEHICLES AND TROOPS OVER A WIDE AREA BY SCATTERING SMALL BOMBLETS PREVIOUSLY THEY HAD COST THE PENTAGON 13600 APIECE MR LITAN SAID THERE HAD BEEN ONLY FOUR ANTITRUST CHALLENGES TO DEFENSE COMPANY MERGERS IN RECENT YEARS THIS IS AN UNUSUAL EVENT HE EXPLAINED MS GORELICK CALLED THE CASE WHICH WAS INSTIGATED BY CHARGES FROM THE ARMY AND PREPARED BY THE JUSTICE DEPARTMENT'S OFFICE IN SAN FRANCISCO A PERFECT EXAMPLE OF HOW DOD AND DOJ CAN AND WILL PARTICIPATE TO PREVENT THE GOVERNMENT FROM BEING OVERCHARGED 9401200032 940120 POLITICS & POLICY WHITE HOUSE APPROACHES RUDMAN ON PENTAGON POST WASHINGTON THE WHITE HOUSE CONTACTED FORMER NEW HAMPSHIRE SEN WARREN RUDMAN YESTERDAY TO GAUGE HIS INTEREST IN BECOMING DEFENSE SECRETARY AN ADMINISTRATION OFFICIAL SAID IT ISN'T CLEAR WHETHER MR RUDMAN A REPUBLICAN IS INTERESTED IN THE JOB HE COULDN'T BE REACHED FOR A COMMENT LAST NIGHT SEPARATELY OTHER ADMINISTRATION AIDES SAID THE WHITE HOUSE SOUNDED OUT SEN SAM NUNN RECENTLY ABOUT WHETHER HE WAS INTERESTED IN TAKING THE PENTAGON POST AFTER BOBBY INMAN TOLD THE WHITE HOUSE ON JAN 6 THAT HE WANTED TO WITHDRAW HIS NAME FROM CONSIDERATION FOR THE DEFENSE POST ONE AIDE SAID VICE PRESIDENT AL GORE BEGAN THE PROCESS OF LOOKING FOR A NEW NOMINEE AS PART OF THAT PROCESS MR GORE TALKED TO SEN NUNN THE CHAIRMAN OF THE ARMED SERVICES COMMITTEE BUT THE GEORGIA DEMOCRAT EXPRESSED NO INTEREST IN THE JOB THE AIDE SAID AIDES TO SEN NUNN DECLINED TO COMMENT 9401200031 940120 BUSINESS BRIEF US BANKNOTE CORP SHAREHOLDER SUIT CITES LOSS OF POSTAL SERVICE CONTRACT US BANKNOTE CORP NEW YORK WAS NAMED IN A SHAREHOLDER SUIT IN THE WAKE OF ITS LOSS OF US POSTAL SERVICE PRINTING WORK A LAWSUIT IN FEDERAL COURT IN MANHATTAN ALLEGES THAT THE NEW YORK COMPANY FAILED TO WARN SHAREHOLDERS THAT ITS POSTAL SERVICE CONTRACT WAS AT RISK US BANKNOTE NORTH AMERICA'S LARGEST PRIVATE SECURITYPRINTING COMPANY RECEIVED NO ORDERS IN THE MOST RECENT ROUND OF CONTRACTS VALUED AT AS MUCH AS 330 MILLION OVER FIVE YEARS THE LAWSUIT SEEKS CLASSACTION STATUS FOR THOSE WHO BOUGHT US BANKNOTE COMMON STOCK BETWEEN APRIL 1993 AND JAN 6 1994 THE DAY THE COMPANY ANNOUNCED THAT THE POSTAL SERVICE CONTRACT WOULD BE SPLIT AMONG FOUR COMPETITORS THE NEWS HAMMERED THE COMPANY'S STOCK PRICE THE COMPANY DECLINED TO COMMENT ON THE LAWSUIT THE SUIT ALSO ALLEGES THAT MORRIS WEISSMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD AN INCENTIVE TO KEEP US BANKNOTE'S STOCK PRICE ARTIFICIALLY HIGH BECAUSE OF TERMS ON AN EMPLOYMENT CONTRACT TIED TO THE STOCK PRICE 9401200030 940120 BUSINESS BRIEF DRESSER INDUSTRIES INC PLAN TO BUY BAROID WINS BACKING OF FIRMS' HOLDERS SHAREHOLDERS OF DRESSER INDUSTRIES INC AND BAROID CORP APPROVED DRESSER'S PROPOSED ACQUISITION OF BAROID PROMPTING STANDARD & POOR'S CORP TO RAISE ITS RATING ON BAROID'S 150 MILLION OF 8 SENIOR NOTES DUE APRIL 15 2003 AS PREVIOUSLY ANNOUNCED DRESSER WILL ACQUIRE BAROID IN A STOCK TRANSACTION VALUED AT ABOUT 850 MILLION DRESSER BASED IN DALLAS AND BAROID HOUSTON ARE BOTH ENERGY SERVICES COMPANIES S&P RAISED ITS RATING ON BAROID'S NOTES TO SINGLEAMINUS FROM DOUBLEBPLUS AND REMOVED THE NOTES FROM CREDITWATCH WHERE THEY WERE PLACED LAST SEPTEMBER S&P SAID THE UPGRADE REFLECTS THE CREDIT QUALITY OF DRESSER WHICH INTENDS TO GUARANTEE BAROID'S DEBT 9401200029 940120 POLITICS & POLICY RENO IS EXPECTED TO NAME ROBERT FISKE AN EXPROSECUTOR TO PROBE WHITEWATER BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTORNEY GENERAL JANET RENO IS EXPECTED TO APPOINT A FORMER US ATTORNEY IN NEW YORK AS THE INDEPENDENT COUNSEL TO INVESTIGATE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENTS IN WHITEWATER DEVELOPMENT CORP THE APPOINTMENT OF ROBERT FISKE JR A 63YEAROLD BROOKLYN NATIVE AND PARTNER IN THE NEW YORK LAW FIRM DAVIS POLK & WARDWELL COULD COME AS EARLY AS TODAY ACCORDING TO A LAW ENFORCEMENT OFFICIAL A GRADUATE OF YALE UNIVERSITY AND THE UNIVERSITY OF MICHIGAN LAW SCHOOL MR FISKE WAS A US ATTORNEY FROM 1976 TO 1980 MORE RECENTLY HE REPRESENTED FORMER DEFENSE SECRETARY CLARK CLIFFORD AND WASHINGTON LAWYER ROBERT ALTMAN IN A CRIMINAL CASE INVOLVING BCCI HOLDINGS LUXEMBOURG SA MS RENO HAD CONSISTENTLY RESISTED CALLS TO APPOINT AN INDEPENDENT COUNSEL ARGUING THAT ANYONE SHE CHOSE WOULDN'T BE CONSIDERED TRULY INDEPENDENT BUT SHE DROPPED HER OPPOSITION LAST WEEK AFTER MR CLINTON REQUESTED THE APPOINTMENT WHITE HOUSE AIDES EXPLAINED THAT MR CLINTON HAD DECIDED THE WHITEWATER FUROR WAS INTERFERING WITH HIS ADMINISTRATION'S WORK REPUBLICANS AND DEMOCRATS HAD DEMANDED THE APPOINTMENT OF A SPECIAL COUNSEL TO LOOK AT SEVERAL QUESTIONS CONCERNING WHITEWATER INCLUDING WAS MONEY FROM A NOWDEFUNCT LITTLE ROCK ARK THRIFT MADISON GUARANTY SAVINGS & LOAN IMPROPERLY USED TO PAY OFF MR CLINTON'S ARKANSAS GUBERNATORIAL CAMPAIGN DEBT DID THE CLINTONS GET A SWEETHEART DEAL ON THEIR WHITEWATER INVESTMENT THEY WERE EQUAL PARTNERS WITH JAMES AND SUSAN MCDOUGAL IN WHITEWATER BUT PUT UP MUCH LESS MONEY MR MCDOUGAL OWNED MADISON GUARANTY AND HILLARY RODHAM CLINTON WAS ITS LAWYER BECAUSE OF THE CLINTONMCDOUGAL RELATIONSHIP DID STATE REGULATORS INAPPROPRIATELY HELP MADISON BY APPROVING AN UNUSUAL STOCK SALE TO BOLSTER THE THRIFT CAREER OFFICIALS FROM THE FRAUD SECTION OF THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION AS WELL AS THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY AND OFFICE OF PUBLIC INTEGRITY HAD BEEN PROBING MATTERS RELATED TO WHITEWATER THOSE INVESTIGATIONS WOULD BE TAKEN OVER BY MR FISKE HE WOULD BE APPOINTED UNDER REGULATIONS THAT GIVE HIM FULL POWER AND INDEPENDENT AUTHORITY TO EXERCISE ALL INVESTIGATIVE AND PROSECUTORIAL FUNCTIONS HE WOULD HAVE THE POWER TO HIRE ATTORNEYS INVESTIGATORS AND OTHER STAFF FROM OUTSIDE THE CIVILSERVICE RANKS AN INDEPENDENT COUNSEL MAY BE FIRED ONLY BY THE PERSONAL ACTION OF THE ATTORNEY GENERAL AND ONLY FOR GOOD CAUSE PHYSICAL DISABILITY MENTAL INCAPACITY OR ANY OTHER CONDITION THAT SUBSTANTIALLY IMPAIRS THE PERFORMANCE OF THE INDEPENDENT COUNSEL'S DUTIES ACCORDING TO THE REGULATIONS 9401200028 940120 BUSINESS BRIEF UNITED ILLUMINATING CO COMPANY TO TAKE A CHARGE AGAINST 4THQUARTER PROFIT UNITED ILLUMINATING CO SAID IT WILL TAKE A ONETIME CHARGE OF 78 MILLION OR 56 CENTS A SHARE AGAINST FOURTHQUARTER EARNINGS AS PART OF ITS ONGOING ORGANIZATION REVIEW THE ELECTRIC UTILITY COMPANY NEW HAVEN CONN SAID THE CHARGE REFLECTS THE COST OF A VOLUNTARY EARLYRETIREMENT PROGRAM AND OTHER RESTRUCTURING COSTS THE COMPANY ALSO LOWERED ITS FOURTHQUARTER OPERATING EARNINGS ESTIMATE PREVIOUSLY BETWEEN 15 CENTS AND 25 CENTS A SHARE FINAL EARNINGS WILL BE RELEASED NEXT WEEK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UNITED ILLUMINATING CLOSED AT 3725 A SHARE DOWN 125 9401200027 940120 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALANTEC CORP AN OFFERING OF TWO MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND KIDDER PEABODY & CO CIDCO INC AN OFFERING OF 335 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES COLE NATIONAL CORP AN INITIAL OFFERING OF FIVE MILLION CLASS A COMMON SHARES VIA MERRILL LYNCH & CO CS FIRST BOSTON AND SMITH BARNEY SHEARSON INC HEALTH POWER INC AN OFFERING OF 900000 COMMON SHARES VIA RONEY & CO STORAGE USA INC AN OFFERING OF 55 MILLION COMMON SHARES VIA MORGAN KEEGAN & CO AND KEMPER SECURITIES INC 9401200026 940120 INTERNATIONAL BRIEF KLM ROYAL DUTCH AIRLINES STAKE IN NORTHWEST AIRLINES TO REMAIN AT CURRENT LEVEL KLM ROYAL DUTCH AIRLINES SAID IT WILL HOLD THE STAKE IN ITS US AFFILIATE NORTHWEST AIRLINES CORP AT AROUND 20 FOLLOWING NORTHWEST'S INITIAL PUBLIC OFFERING OF 20 MILLION CLASS A COMMON SHARES KLM HAS A 75 VOTING STAKE IN NORTHWEST NORTHWEST ON TUESDAY SAID IT EXPECTS TO RAISE ABOUT 400 MILLION IN EQUITY THROUGH THE OFFERING WHICH IT EXPECTS TO OCCUR IN THE FIRST QUARTER THE DUTCH CARRIER SAID IT WILL MAINTAIN ITS STAKE IN NORTHWEST VIA AN EXCHANGE OF PREFERRED SHARES FOR COMMON STOCK AMONG EXISTING SHAREHOLDERS KLM'S LOANS TO NORTHWEST HAVE BEEN CARRIED ON NORTHWEST'S BOOKS AS PREFERRED STOCK A KLM SPOKESMAN SAID KLM IN 1991 AND 1992 WROTE OFF THE ENTIRE VALUE OF ITS ORIGINAL 400 MILLION INVESTMENT IN NORTHWEST DESPITE THE FACT THAT KLM HAS CONSIDERED THE LOANS AS SUBORDINATED DEBT 9401200025 940120 BUSINESS BRIEF SYMANTEC CORP NARROWER LOSS IS REPORTED FOR THE FISCAL THIRD QUARTER SYMANTEC CORP REPORTED A NARROWED LOSS OF 92 MILLION OR 31 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER INCLUDING ONETIME CHARGES OF 215 MILLION OR 49 CENTS A SHARE FOR ACQUISITIONS AND LITIGATION THE CUPERTINO CALIF SOFTWARE CONCERN HAD A LOSS OF 115 MILLION OR 40 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FOR THE PERIOD ENDED DEC 31 WAS 67 MILLION UP 9 FROM 616 MILLION A YEAR AGO SEPARATELY THE COMPANY ANNOUNCED A 19 MILLION TENTATIVE SETTLEMENT OF THREE SHAREHOLDER LAWSUITS FILED AGAINST IT IN SAN JOSE FEDERAL COURT IN DECEMBER 1992 THE SUITS ALLEGED THAT THE COMPANY PROVIDED FALSE AND MISLEADING FINANCIAL DATA IN VIOLATION OF FEDERALSECURITIES LAWS BETWEEN JUNE 1991 AND OCTOBER 1992 SYMANTEC HAS DENIED ANY WRONGDOING THE SETTLEMENT ALL BUT 65 MILLION OF WHICH WILL BE PAID BY THE COMPANY'S INSURERS IS INCLUDED IN THE QUARTERLY RESULTS ALSO INCLUDED IS A CHARGE OF 15 MILLION FOR THE PURCHASE OF SOFTWARE MAKER FIFTH GENERATION SYSTEMS INC 9401200024 940120 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN FRIGID WEATHER MAY WARM UP THE OUTLOOK A BIT FOR SOME UTILITIES DEFLATED UTILITY STOCKS MAY BENEFIT FROM THE RECENT COLD SNAP SAYS DEAN WITTER ANALYST WILLIAM TILLES STILL HE CAUTIONS THAT THE 1993 FIRST QUARTER WAS A COLD ONE TOO WHICH MAY TEMPER ANY YEARTOYEAR GAINS UTILITIES THAT SUPPLY NATURAL GAS FOR HEAT STAND THE BEST CHANCE OF A LIFT BUT ELECTRICITY USE ALSO RISES THE EDISON ELECTRIC INSTITUTE SAYS USAGE IN THE FIRST TWO WEEKS OF JANUARY IS 8 ABOVE A YEAR EARLIER AND MORE THAN TWICE THE RATE OF GAIN EDISON SEES FOR '94 THE AMERICAN GAS ASSOCIATION SAYS MANY NATURALGAS PIPELINES ARE RUNNING AT OR NEAR CAPACITY AND UTILITIES HAVE BEGUN TO DIP INTO VAST SUPPLIES BUT THE UTILITIES' EXPENSES RISE IN A FREEZE TOO BROOKLYN UNION GAS CO TRANSPORTS RECORD VOLUME SO FAR THIS MONTH BUT THE UTILITY NOTES THAT ANY POSSIBLE EARNINGS GAIN IS MODERATED BY REGULATORY CAPS ON RATES STILL THIS WILL BE BETTER FOR US THAN A MILD WINTER WOULD HAVE SAYS A BROOKLYN GAS OFFICIAL NO QUESTION WE'LL GET A REVENUE KICK FROM THIS SAYS WISCONSIN PUBLIC SERVICE IN GREEN BAY WHERE IT HITS 20 BELOW QUAKE AID AND OTHER DISASTER RELIEF FROM CORPORATIONS GROW MORE ORGANIZED AFTER HURRICANE ANDREW KMART CORP SENT ALL SORTS OF GOODS TO HELP VICTIMS AND FOUND THERE WERE SOME TREMENDOUS MISMATCHES NOW TO HELP OUT IN LA IT GIVES CASH AND BOTTLED WATER SOME COMPANIES TEAM UP WITH GIFTS IN KIND AMERICA AN ALEXANDRIA VA NONPROFIT GROUP THAT MATCHES AND TRANSPORTS DONATED GOODS ABOUT 20 FIRMS INCLUDING AVON PRODUCTS NEW YORK AND RECREATIONAL EQUIPMENT INC SEATTLE GIVE GOODS IN ADVANCE THAT ARE STORED BY GIFTS IN KIND AVON WHICH LAST YEAR GAVE AWAY SOME 9 MILLION WORTH OF PERSONALCARE ITEMS THIS YEAR TURNS OVER THE WHOLE DONATEDGOODS JOB TO THE GOBETWEEN GROUP IT'S EFFICIENT AND TIMELY SAYS GLENN S CLARKE HEAD OF THE AVON PRODUCTS FOUNDATION AVON PAYS UNDER 50000 FOR THE SERVICE ABOUT ONETHIRD OF WHAT IT WOULD COST US TO RUN IT SAYS MR CLARKE RECREATIONAL EQUIPMENT LETS THE GROUP PICK ITEMS SUCH AS FIRSTAID KITS AND LANTERNS FROM ITS CATALOG NIBBLING THE EAR OF THE AUDIO MARKET ROMANCE NOVELS COURT LISTENERS SOME 46 OF ALL PAPERBACKS SOLD ARE ROMANCES YET SUCH TITLES ACCOUNT FOR ONLY A TINY PART OF THE AUDIOBOOK MARKET SAYS DCC COMPACT CLASSICS LOS ANGELES BUT THAT MAY CHANGE AS DCC'S NEW ROMANCE AUDIO UNIT AND OTHERS WOO FANS OF THE FORMULA TALES IT'S A MARKET THAT HASN'T BEEN FULLY EXPLORED SAYS AN AVON BOOKS OFFICIAL JOHANNA LINDSEY A TOP AVON AUTHOR IS ONE OF 15 WRITERS SIGNED BY DCC WHICH SELLS TAPES FOR 599 IN GROCERY AND BOOK STORES THE ROMANCE GENRE TRIED THE LISTENING MARKET IN THE EARLY 1980S WITHOUT MUCH SUCCESS SAYS JIM BRANNIGAN OF THE AUDIO PUBLISHERS ASSOCIATION WALLINGFORD CONN HE ADDS I SUSPECT IT WAS TOO EARLY PRICING AND DISTRIBUTION STRATEGIES DIFFER AUDIO ENTERTAINMENT IN DENVER STARTED WITH A 499 TAPE IN STORES BUT NOW FOCUSES ON MAILORDER SALES AT 699 PER TAPE THE DENVER FIRM RECORDS ORIGINAL TALES TOLD ONLY ON TAPE NOT PUBLISHED NOVELS AUDIO ENTERTAINMENT RECENTLY HELD A TAPE SIGNING FOR TWO OF ITS AUTHORS AT THE TATTERED COVER BOOK STORE IN DENVER CASH FLOW IN THE FIRST QUARTER COULD RISE NEARLY 12 FROM A YEAR EARLIER SAY CHIEF FINANCIAL OFFICERS SURVEYED BY AT KEARNEY CHICAGO CONSULTANTS EXECUTIVES SAID THEY EXPECT MODEST SALES INCREASES BUT STRONGER OPERATING PROFITS FROM RUSSIA WITH GUNS ORGANIZED CRIMINAL GANGS FROM THE FORMER SOVIET UNION HAVE SET UP SHOP IN 30 COUNTRIES SAYS CONTROL RISKS GROUP A MCLEAN VA INTERNATIONAL SECURITY CONSULTANT IT ADDS NORDIC LANDS ARE MOST AT RISK DUE TO PROXIMITY TO THE FORMER SOVIET UNION GOODBYE LAPTOP HELLO PENBASED MOBILE COMPUTER FIELD REPS FOR SMITHKLINE BEECHAM CONSUMER HEALTHCARE TORONTO USE TABLETSIZED PCS WITH ELECTRONIC PENS TO CALL UP PRODUCT INFORMATION TRANSMIT ORDERS AND STAY IN TOUCH WITH THE MAIN OFFICE THE CANADIAN UNIT SAYS US AND UK OPERATIONS ARE MONITORING THE FIELD PROGRAM ANNUAL REPORTS DOUBLE AS MARKETING MATERIAL AT MORE COMPANIES GENERIC DRUG MAKER BARR LABORATORIES PRODUCED EXTRA ANNUAL REPORTS FOR FISCAL 1993 IN ORDER TO SEND COPIES TO PROSPECTIVE SHAREHOLDERS AND CLIENTS IN DALLAS MESA INC BOONE PICKENS'S ENERGY COMPANY PLANS TO USE ITS ANNUAL REPORT AS A MARKETING TOOL WHEN IT PITCHES WALL STREET AND THE FINANCIALCONFERENCE CIRCUIT THIS YEAR SAYS A MESA EXECUTIVE IN NEW YORK CONSULTANT ADDISON CORPORATE ANNUAL REPORTS ADVISES MORE FIRMS TO USE THE REPORTS TO ACTUALLY SELL ITS CLIENT DURACELL INTERNATIONAL ADDED A FOURPAGE FOLDOUT MEANT FOR CURRENT AND POTENTIAL INVESTORS MANY FIRMS STILL PLAN TO STRESS THEIR COMPETITIVENESS THIS YEAR SEQUENT COMPUTER SYSTEMS BEAVERTON ORE WANTS ITS ANNUAL REPORT TO CONVEY A PERMANENT WHITEWATER ATTITUDE TOWARD ITS FLUID MARKET SAYS CASEY POWELL CEO IN THE VOLATILE COMPUTER FIELD ASTUTE SHAREHOLDERS KNOW THEY SHOULD BE HEARING A LOT ABOUT CHANGE ADDS MR POWELL BRIEFS TTTTAXI A CABFARE INCREASE TOOK HOLD IN CHICAGO THIS WEEK AS SUBZERO COLD GRIPS THE STREETS OVERLOOK HOSPITAL IN SUMMIT NJ RESPONDS TO A PATIENTSATISFACTION SURVEY BY SLASHING ITS PARKING RATES AND LETTING OUTPATIENTS SENIOR CITIZENS AND BLOOD DONORS PARK FREE 9401200023 940120 BUSINESS BRIEF PANHANDLE EASTERN CORP PRETAX CHARGE FOR 4TH PERIOD IS SCHEDULED AT 100 MILLION PANHANDLE EASTERN CORP SAID IT WILL TAKE A FOURTHQUARTER 100 MILLION PRETAX CHARGE WHICH WILL BE PARTLY OFFSET BY A 48 MILLION PRETAX GAIN NEVERTHELESS THE HOUSTONBASED NATURALGAS PIPELINE COMPANY SAID EARNINGS ARE EXPECTED TO REFLECT AN IMPROVEMENT FROM A YEAR EARLIER THE COMPANY SAID THAT DESPITE THE CHARGE AND THE GAIN IT EXPECTS EARNINGS TO BE IN LINE WITH ANALYSTS EXPECTATIONS OF ABOUT 49 MILLION OR 37 CENTS A SHARE PERSHARE FIGURES REFLECT AN INCREASE IN COMMON SHARES OUTSTANDING TO 119 MILLION FROM 113 MILLION A YEAR BEFORE IN 1992'S FOURTH PERIOD THE COMPANY HAD NET INCOME OF 43 MILLION OR 40 CENTS A SHARE RESTATED FOR AN ACCOUNTING CHANGE ON REVENUE OF 6973 MILLION PANHANDLE SAID THE CHARGE IS RELATED TO CERTAIN REGULATORY ISSUES AFFECTING ITS TEXAS EASTERN TRANSMISSION CORP SUBSIDIARY WHICH DEREGULATED CERTAIN PIPELINE OPERATIONS THE GAIN IS FROM THE SALE OF CERTAIN PIPELINE ASSETS TO INVESTORS 9401200022 940120 BUSINESS BRIEF SANTA FE PACIFIC CORP NET FELL 60 IN 4TH QUARTER BUT OPERATING PROFIT ROSE SANTA FE PACIFIC CORP SAID FOURTHQUARTER NET INCOME FELL 60 BECAUSE YEAREARLIER EARNINGS INCLUDED A 2049 MILLION GAIN FROM SALE OF RAIL LINES NET FOR THE QUARTER WAS 67 MILLION OR 36 CENTS A SHARE DOWN FROM 1689 MILLION OR 91 CENTS A SHARE OPERATING PROFIT ROSE 32 TO 1435 MILLION FROM 1086 MILLION REVENUE ROSE 16 TO 7326 MILLION THE SCHAUMBURG ILL TRANSPORTATION ENERGY AND MINING COMPANY SAID RESULTS WERE BOOSTED BY RECORD OPERATING PROFIT AT ITS RAILWAY UNIT HIGHER PROFIT AT ITS GOLDMINING UNIT AND LOWER INTEREST EXPENSE FOR THE YEAR NET ROSE TO 3388 MILLION OR 181 A SHARE AGAINST A LOSS OF 1045 MILLION OR 57 CENTS A SHARE IN 1992 THE 1993 EARNINGS INCLUDE A NONRECURRING PRETAX GAIN OF 3629 MILLION THE YEAREARLIER RESULTS INCLUDE A ONETIME CHARGE OF 3204 MILLION FOR CENTRALIZING OPERATIONS AND INCREASED ENVIRONMENTAL ACCRUALS AND A CHARGE OF 163 MILLION FOR RETIREE AND INACTIVEEMPLOYEE BENEFITS 9401200021 940120 BUSINESS BRIEF APPLIED EXTRUSION TECHNOLOGIES INC COMPANY AGREES TO PURCHASE HERCULES INC FILM GROUP APPLIED EXTRUSION TECHNOLOGIES INC SAID IT ENTERED INTO A LETTER OF INTENT TO ACQUIRE THE PACKAGING FILM GROUP OF HERCULES INC FOR MORE THAN 160 MILLION APPLIED EXTRUSION A SALEM MASSBASED PLASTICS PRODUCTS MAKER SAID IT PLANS TO FINANCE THE TRANSACTION WITH A COMBINATION OF DEBT AND EQUITY SECURITIES IT WASN'T MORE SPECIFIC HERCULES WILMINGTON DEL IS A CHEMICAL CONCERN THE PACKAGING FILM GROUP HAS ANNUAL SALES OF MORE THAN 160 MILLION APPLIED EXTRUSION SAID 9401200020 940120 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC RESTRUCTURING CAUSES CHARGE OF 60 MILLION IN 4TH QUARTER ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA SAID IT WILL TAKE A FOURTHQUARTER RESTRUCTURING CHARGE OF 60 MILLION LARGELY RELATED TO CONTINUED JOB CUTS RESULTING IN A LOSS ARMSTRONG SAID THAT EXCLUDING THE RESTRUCTURING CHARGES OF 159 A SHARE WOULD BE BETWEEN 80 CENTS AND 85 CENTS A SHARE FULLY DILUTED THAT WOULD FAR EXCEED THE 13 CENTS A SHARE IN OPERATING PROFIT IN THE 1992 FOURTH QUARTER AND THE 58 CENTS A SHARE ANALYSTS EXPECT FOR THE QUARTER THE NEWS SENT ARMSTRONG'S SHARES SHARPLY HIGHER TO CLOSE AT 57125 UP 4 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ARMSTRONG SAID SALES ROSE 4 FROM THE 6001 MILLION OF A YEAR AGO AND WERE A RECORD FOR ANY FOURTH QUARTER ARMSTRONG EXPECTS TO POST ITS RESULTS NEXT WEEK THE MAKER AND MARKETER OF FLOOR COVERINGS AND INDOOR FURNISHINGS SAID ITS FUTURE LOWER COST STRUCTURE WILL HAVE A CONTINUING POSITIVE EFFECT ON EARNINGS AND CASH FLOW BEGINNING THIS YEAR 9401200019 940120 BUSINESS BRIEF KERRMCGEE CORP RESULTS FOR FOURTH QUARTER AT BREAKEVEN LEVEL SEEN KERRMCGEE CORP SAID IT EXPECTS BREAKEVEN RESULTS FOR THE FOURTH QUARTER COMPARED WITH A YEARAGO LOSS OF 102 MILLION OR 212 A SHARE AFTER CHARGES FOR THE YEAR THE OKLAHOMA CITY ENERGY AND CHEMICAL CONCERN EXPECTS TO REPORT NET INCOME OF 75 MILLION TO 80 MILLION COMPARED WITH YEARAGO LOSS OF 1005 MILLION WHICH INCLUDED 2045 MILLION IN CHARGES KERRMCGEE SAID ITS LOWER YEAREND PROFITS WERE DUE TO DEPRESSED OIL PRICES AND HIGHER EXPLORATION EXPENSES 9401200018 940120 BUSINESS BRIEF SPI HOLDING INC UNIT TO SHIFT MANUFACTURING TO CERPLEX ELECTRONICS FIRM SPI HOLDING INC RICHARDSON TEXAS SAID ITS SPECTRADYNE UNIT AGREED TO TRANSFER ITS MANUFACTURING OPERATIONS TO CERPLEX GROUP INC OF ANAHEIM CALIF SPECTRADYNE PROVIDES PAYPERVIEW MOVIES AND OTHER PROGRAMMING TO HOTEL ROOMS ITS MANUFACTURING OPERATIONS PRODUCE THE EQUIPMENT THAT ALLOWS THE HOTELS TO RECEIVE THE PROGRAMMING UNDER THE ACCORD CERPLEX A CLOSELY HELD ELECTRONICS CONCERN WILL LEASE SPECTRADYNE'S MANUFACTURING SPACE FOR FIVE YEARS SPECTRADYNE WILL PURCHASE EQUIPMENT FROM CERPLEX FOR AT LEAST ONE YEAR AFTER THAT SPECTRADYNE WILL BE FREE TO BUY EQUIPMENT OFF THE SHELF FROM OTHER MANUFACTURERS A SPOKESWOMAN SAID NO OTHER TERMS OF THE ACCORD WERE DISCLOSED THE OPERATIONS INVOLVED EMPLOY ALMOST 100 PEOPLE 9401200017 940120 BUSINESS BRIEF DEFIANCE INC CONCERN SEES PERSHARE NET OF OVER 70 CENTS FOR YEAR DEFIANCE INC CITING THE STRONG DOMESTIC AUTOMOTIVE INDUSTRY SAID IT EXPECTS PERSHARE EARNINGS FOR THE FISCAL YEAR ENDING JUNE 30 TO BE IN THE RANGE OF THE MID70 CENTS BEFORE ACCOUNTING CHARGES THE CLEVELAND COMPANY ALSO SAID SALES FOR THE YEAR SHOULD APPROACH 81 MILLION IN FISCAL 1993 DEFIANCE EARNED 34 MILLION OR 54 CENTS A SHARE ON 792 MILLION IN SALES DEFIANCE A SUPPLIER OF PRODUCTS ENGINEERING AND DESIGN SERVICES SAID IT RECEIVED TWO CONTRACTS TO SUPPLY CAMFOLLOWER ROLLERS DEVICES USED IN ENGINES A CONTRACT WITH EATON CORP WILL ADD ABOUT 17 MILLION IN ANNUAL SALES STARTING THIS SUMMER A CONTRACT WITH GENERAL MOTORS CORP'S AC ROCHESTER UNIT WILL ADD ABOUT 73 MILLION A YEAR IN SALES STARTING IN THE SUMMER OF 1995 THESE CONTRACTS EXTEND CURRENT PACTS WITH THE TWO COMPANIES DEFIANCE INC EXPECTS PERSHARE EARNINGS IN THE MID70 CENTS AREA BEFORE ACCOUNTING CHANGES FOR THE YEAR ENDING JUNE 30 AN ARTICLE YESTERDAY INCORRECTLY CALLED THE ACCOUNTING CHANGES CHARGES 9401200016 940120 BUSINESS BRIEF NET OF WEYERHAEUSER WILLAMETTE INDUSTRIES ROSE IN 4TH QUARTER TWO FORESTPRODUCTS COMPANIES WEYERHAEUSER CO AND WILLAMETTE INDUSTRIES INC SAID HIGH PRICES AND STRONG DEMAND FOR LUMBER FUELED FOURTHQUARTER RESULTS THAT TOPPED ANALYSTS' EXPECTATIONS TACOMA WASHBASED WEYERHAEUSER SAID IT EARNED 1017 MILLION OR 50 CENTS A SHARE COMPARED WITH 853 MILLION OR 42 CENTS A SHARE IN THE YEARAGO QUARTER SALES ROSE 10 TO 259 BILLION ANALYSTS HAD EXPECTED WEYERHAEUSER TO REPORT PERSHARE NET OF 47 CENTS FOR THE QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH FOR 1993 WEYERHAEUSER'S NET INCOME SURGED 58 TO 5793 MILLION OR 283 A SHARE FROM 372 MILLION OR 183 A SHARE SALES INCHED UP 3 TO 954 BILLION RESULTS IN 1993 INCLUDED NONRECURRING GAINS OF 132 MILLION OR 65 CENTS A SHARE FROM ASSET DISPOSITION AND DEBT EXTINGUISHMENT PLUS A CHARGE OF 20 MILLION OR 10 CENTS A SHARE FOR DEFERRED TAXES WILLAMETTE OF PORTLAND ORE SAID NET INCOME FOR THE FOURTH QUARTER WAS 321 MILLION OR 59 CENTS A SHARE COMPARED WITH 132 MILLION OR 24 CENTS A SHARE IN 1992'S FOURTH QUARTER SALES GAINED 10 TO 658 MILLION ANALYSTS ESTIMATED WILLIAMETTE WOULD POST PERSHARE EARNINGS OF 49 CENTS FOR THE YEAR WILLAMETTE EARNED 137 MILLION OR 250 A SHARE INCLUDING A NONRECURRING ACCOUNTINGRELATED GAIN OF 263 MILLION OR 48 CENTS A SHARE AND A CHARGE OF ABOUT 6 MILLION OR 11 CENTS A SHARE FOR DEFERRED TAXES IN 1992 THE COMPANY HAD NET OF 815 MILLION OR 152 A SHARE SALES GAINED 11 TO 262 BILLION PAPER AND PULP OPERATIONS AT BOTH COMPANIES CONTINUED TO BE WEAK REFLECTING RECESSIONARY EFFECTS OF WEAK DEMAND AND LOW PRICES BUT DEMAND FOR LUMBER AND OTHER BUILDING PRODUCTS STRENGTHENED AS THE NATION'S CONSTRUCTION SECTOR REVIVED 9401200015 940120 ECONOMY RISING ECONOMY IS FOUND BY FED IN LATEST SURVEY STRENGTH IN MANUFACTURING SPENDING BY CONSUMERS AND HOUSING ARE CITED BY PAULETTE THOMAS AND DIANA YIN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON STRONGER MANUFACTURING HOME CONSTRUCTION AND CONSUMER SPENDING ON BIGTICKET PURCHASES ARE BUTTRESSING ECONOMIC GROWTH A MOSTLY OPTIMISTIC FEDERAL RESERVE SAID IN ITS PERIODIC REGIONAL SURVEY ECONOMIC ACTIVITY CONTINUED TO EXPAND WITH SIGNS OF ACCELERATION IN SOME SECTORS SAID THE REPORT ON THE ECONOMY'S PERFORMANCE OVER THE PAST SIX WEEKS THE REPORT ISSUED IN ADVANCE OF A MEETING OF THE FED'S MONETARY POLICY MAKERS EARLY NEXT MONTH ALSO INDICATED THAT INFLATION REMAINED TAME LITTLE UPWARD PRESSURE ON WAGES AND PRICES WAS INDICATED BY ALMOST ALL DISTRICTS IT SAID WITH RISING LUMBER PRICES THE LONE EXCEPTION SOUTHERN CALIFORNIA BATTERED BY THE DEPRESSED REALESTATE AND DEFENSE INDUSTRIES WAS THE ONLY AREA OF THE COUNTRY NOTED FOR CONTINUED WEAKNESS THE SURVEY WAS MADE BEFORE MONDAY'S EARTHQUAKE BUT OTHER PARTS OF THE STATE SHOW SIGNS OF BOTTOMING OUT OR OF MODEST IMPROVEMENT THE REPORT SAID HOLIDAY SPENDING WAS GENERALLY AS GOOD OR BETTER THAN EXPECTED WITH MOST OF THE SPARK COMING FROM SALES OF ELECTRONICS APPLIANCES AND OTHER HOMERELATED DURABLES AUTO SALES WERE PARTICULARLY STRONG IN THE DALLAS MINNEAPOLIS ST LOUIS AND SAN FRANCISCO DISTRICTS ONLY IN THE BOSTON DISTRICT DID RETAILERS REPORT DISAPPOINTINGLY MODEST GAINS FROM YEAREARLIER HOLIDAY SALES APPAREL SALES WERE WEAKER WITH PURCHASES OF ROSE BOWL ITEMS IN WISCONSIN ONE DRAMATIC EXCEPTION MOREOVER RETAILERS RELIED ON HEAVY ADVERTISING AND DISCOUNTING TO SPUR THE SALES DESPITE THE DISAPPOINTING HOLIDAY SALES RETAILERS IN BOSTON AS WELL AS THOSE IN KANSAS CITY PHILADELPHIA RICHMOND AND ST LOUIS REGIONS EXPECT CONTINUED ECONOMIC GROWTH TO BOOST RETAIL SALES MODERATELY THIS SPRING AFTER SEVERAL HARSH YEARS SALES AND CONSTRUCTION OF HOMES SHOWED SUBSTANTIAL GAINS IN MOST DISTRICTS EVEN NEW ENGLAND IS EXHIBITING SIGNS OF LIFE WITH HARDHIT CONNECTICUT'S RESIDENTIAL MARKET STABILIZING SOME OF THE BUSINESSES THAT WERE POLLED SPECULATED THAT THE RECENT UPTICK IN LONGTERM INTEREST RATES MAY BE PROMPTING SOME BUYERS TO MOVE AS THEY STOP WAITING FOR RATES TO BOTTOM OUT COMMERCIAL REAL ESTATE REMAINED WEAK IN MOST BIG MARKETS VACANCY RATES ROSE IN MANHATTAN DURING THE PERIOD MANUFACTURING STRENGTHENED IN MOST DISTRICTS WITH SOME PICKUP IN EMPLOYMENT EXPECTED TO FOLLOW ORDERS FOR HEAVYDUTY TRUCKS FOR INSTANCE HAVE STRETCHED SOME INDUSTRY SUPPLIERS TO THEIR LIMITS THE CHICAGO REGION SAID VIGOROUS HOME SALES HAVE BOLSTERED DEMAND FOR CONSTRUCTION PRODUCTS IN THE BOSTON DALLAS MINNEAPOLIS AND ATLANTA DISTRICTS WHILE ATLANTA ALSO REPORTED A JUMP IN TEXTILE ORDERS RESULTING FROM HOME REFURBISHING THREEQUARTERS OF THE PHILADELPHIA DISTRICT MANUFACTURERS SURVEYED REPORTED SHIPMENTS AT A STEADY PACE OR MOVING UP AND MANY PLAN TO HIRE MORE WORKERS OVER THE NEXT SIX MONTHS THE BOSTON DISTRICT ESTIMATED THAT FOURFIFTHS OF ITS MANUFACTURERS HAVE REDUCED EMPLOYMENT IN THE PAST YEAR BUT NOW EXPECT EMPLOYMENT TO STABILIZE THE NEW YORK REGION ALSO NOTED LAYOFFS FROM SOME LARGE MANUFACTURERS HERE IS A SUMMARY OF THE REPORT BY THE 12 FEDERAL RESERVE DISTRICT BANKS BOSTON STRONG SALES OF EXISTING HOMES AND SIZABLE GAINS IN NEWHOME CONSTRUCTION BOLSTERED THE ECONOMIC EXPANSION RETAIL MANUFACTURING AND RESIDENTIAL REALESTATE SECTORS ARE MODERATELY OPTIMISTIC ABOUT 1994 WHILE INSURANCE COMPANIES ARE STILL WARY RETAILERS ESPECIALLY IN SPECIALTY NICHES PLAN TO EXPAND STORES WHICH COULD LEAD TO MORE JOBS MIXED SALES MARKED MANUFACTURED GOODS EMPLOYMENT REMAINS STEADY OVERALL BUT SOME AIRLINES EXPECT FURTHER REDUCTIONS NEW YORK PLANNED LAYOFFS IN NEW YORK COULD DAMP OVERALL ECONOMIC IMPROVEMENT BUT THE OUTLOOK IS STILL SOMEWHAT MORE FAVORABLE AS VOLATILE UNEMPLOYMENT LEVELS IN NEW YORK AND NEW JERSEY HAVE LEVELED OFF RETAIL SALES SURGED IN DECEMBER OVERCOMING EARLIER SLUGGISHNESS THOUGH SLIM PROFIT MARGINS ARE EXPECTED DUE TO MASSIVE DISCOUNTING HIGH PRIMARY VACANCY RATES IN MANHATTAN ANCHORED OTHERWISE STABLE LEASING ACTIVITY IN OTHER PARTS OF THE CITY LENDING LEVELS WERE MIXED AS WAS OVERALL LOAN DEMAND PHILADELPHIA DESPITE INCREASED DEMAND FOR MANUFACTURED GOODS AND HIGHERTHANEXPECTED HOLIDAY RETAIL SALES BUSINESSES REMAIN CAUTIOUS FOR 1994 BANKERS ATTRIBUTED LENDING INCREASES TO SEASONAL ACTIVITY BUT ARE UPBEAT THAT GROWING CONSUMER CONFIDENCE WILL LEAD TO GREATER PERSONAL BORROWING CLEVELAND RETAIL SALES CONTINUE TO OUTPERFORM THE NATION UNEMPLOYMENT FELL JUST BELOW THE NATIONAL AVERAGE MODEST BUT CONSISTENT GAINS IN MANUFACTURING HAS STABILIZED CUTBACKS IN DEFENSERELATED INDUSTRIES AS WELL AS WEAK EUROPEAN EXPORT MARKETS DOUBLEDIGIT DOMESTICAUTO SALES LED JAPANESE MODELS SPURRED BY CONSUMER OPTIMISM MODEST PRICE INCREASES ON DOMESTIC MODELS AND FAVORABLE INTEREST RATES DEMAND FOR LOANS PARTICULARLY AUTO LOANS ROSE RICHMOND BAD WEATHER HURT CROPS BUT DIDN'T DETRACT FROM TOURISM AS HOTELS MOTELS AND RESORTS POSTED HIGHER WINTER BOOKINGS THAN IN 1992 MANUFACTURING RETAIL AND HOME SALES IMPROVED THOUGH SOME PRICES FOR RAW MATERIALS WERE BEGINNING TO RISE RENEWED COMMERCIAL CONSTRUCTION MAY NOT LAST ATLANTA DESPITE FLAT APPAREL SALES RETAILERS REPORTED STRONG GAINS OVERALL LIFTED BY LASTMINUTE HOLIDAY VOLUME TOURISM ALSO INCREASED EXCEPT IN MIAMI WHERE IT IS SAID TO HAVE FALLEN BECAUSE OF CRIME DEFENSE CUTBACKS MAY BE MITIGATED BY CONVERSIONS OF OUTPUT TO CIVILIAN USE BUILDERS SCRAMBLED TO MATCH HIGHER DEMAND FOR NEW HOMES BUT THE SHORT SUPPLY OF SUBCONTRACTORS PUSHED UP WAGES PRICES FOR FINISHED GOODS REMAIN FLAT BUT MAY SOON RISE AS WAGE PRESSURES INCREASED LAST MONTH MIXED DEMAND FOR LOANS IS EXPECTED TO PICK UP AT THE END OF THE QUARTER CHICAGO RETAIL SALES IN LINE WITH EXPECTATIONS EXCEEDED THE NATIONAL AVERAGE AIDED IN PART BY INCREASED CREDITCARD AND CHECK PURCHASES HOUSEWARES ELECTRONICS AND OTHER BIGTICKET ITEMS LED OVERALL SALES WHILE APPAREL SALES CONTINUED TO SAP GROWTH CONSISTENT GROWTH IN MANUFACTURING OVER THE PAST QUARTER HAS LED TO OPTIMISM FOR 1994 EVEN WITH TIGHT JAPANESE AND EUROPEAN COMPETITION IN DURABLE GOODS PRESSURE FROM SHARP RISES IN CORN AND SOYBEAN PRICES HAVE SHIELDED FARMERS FROM FLOOD LOSSES ST LOUIS ECONOMIC ACTIVITY CONTINUES TO PICK UP BOOSTED BY UNSEASONABLY STRONG HOUSING STARTS MANUFACTURERS OF KITCHEN AND BATH FIXTURES CONSEQUENTLY POSTED INCREASED SALES AND EMPLOYMENT ADVERTISING AND GENERAL ECONOMIC GROWTH NOT DEEP DISCOUNTING PUSHED UP NONAPPAREL SALES WITH STRONG SALES GROWTH EXPECTED TO CONTINUE INTO 1994 JOB CREATION OUTPACED JOB LOSS EXPECTED TO BE A CONTINUING TREND A SHARP UPTURN IN CROP PRICES ESPECIALLY NEW RICE EXPORTS WILL INCREASE PLANTING MINNEAPOLIS CONSTRUCTION BOOMED IN THE REGION'S GROWING ECONOMY UNEMPLOYMENT HAS REMAINED LOWER THAN THE NATIONAL RATE WITH LITTLE PRESSURE ON WAGES WHILE THE MANUFACTURING RETAIL AND FORESTPRODUCTS SECTORS CONTINUE TO GROW AGRICULTURE REMAINS FLAT DUE TO POOR WEATHER KANSAS CITY STRONG HOUSING STARTS AND HOME SALES COMBINED WITH MODERATELY HIGHER RETAIL SALES CONTRIBUTE TO OVERALL MODERATE GROWTH OFFSETTING EFFECTS INCLUDE FLAT FARM INCOME AND A RECEDING ENERGY SECTOR FROM FALLING OIL PRICES WHILE BANK DEPOSITS WERE MIXED OVERALL LOAN DEMAND INCREASED DALLAS THE ECONOMY EXPANDED WITH GROWTH IN MANUFACTURING ORDERS PARTICULARLY CONSTRUCTIONRELATED GOODS DUE TO INCREASED HOUSING CONSTRUCTION HIGHER DEMAND FOR COMPUTERRELATED ELECTRONICS OPENED THE DOOR FOR RECENT HIRING OVERDISCOUNTING IN DECEMBER LED TO MODERATE RETAIL SALES BUT ALSO LOWERTHANDESIRED INVENTORIES FALLING OIL PRICES HAVE REDUCED DRILLING DRY WEATHER DAMAGED WHEAT CROPS AND WEAKENED AGRICULTURAL CONDITIONS SAN FRANCISCO SIGNS OF SOLID ECONOMIC GROWTH IN THE REGION MISSED CALIFORNIA AGAIN DESPITE INDICATIONS OF MODEST IMPROVEMENT IN ITS BANKING INDUSTRY AND THE CENTRAL VALLEY'S SOLID HOLIDAY SALES THE AEROSPACE INDUSTRY CONTINUES TO SAP WESTERN WASHINGTON'S ECONOMY AS DOES LAGGING TOURISM IN HAWAII ELSEWHERE IN THE REGION RETAIL SALES ARE STRONG AND THE AGRICULTURAL OUTLOOK IS FAVORABLE REALESTATE AND MANUFACTURING ACTIVITY IS MIXED AND DECIDEDLY POOR IN CALIFORNIA DUE TO CONTINUING DEFENSERELATED LAYOFFS AND WEAK COMMERCIAL LEASING 9401200014 940120 LEISURE & ARTS RHYME AND REASON EDITING THE POET OF THE CENTURY BY AMY GAMERMAN NEW YORK WH AUDEN HAD IT EASY ALL HE HAD TO DO WAS WRITE SOME OF THE GREATEST VERSE OF THE 20TH CENTURY EDWARD MENDELSON HAS THE JOB OF FIGURING OUT HOW TO PASS THOSE POEMS ON TO POSTERITY ACCURATELY IN IDEAL TEXTS CHOSEN FROM THE POET'S MANY VERSIONS EVEN THE SIMPLE MATTER OF A SEMICOLON CAN KEEP HIM UP NIGHTS AUDEN SAID I LET MY FRIENDS DO MY PUNCTUATION FOR ME' THEN HE GOT ANNOYED WHEN HIS FRIENDS CHANGED IT SAYS MR MENDELSON WHO IS AUDEN'S LITERARY EXECUTOR YOU LOSE SLEEP OVER IT BUT YOU HAVE TO DECIDE ONE WAY OR ANOTHER LET ME REPHRASE THAT YOU HAVE TO USE YOUR JUDGMENT SINCE MR MENDELSON HAS DEVOTED MOST OF HIS ADULT LIFE TO GETTING SOMEONE ELSE'S WORDS RIGHT IT'S NOT SURPRISING THAT HE TAKES A LOT OF CARE WITH HIS OWN TAPPED TO BE AUDEN'S LITERARY EXECUTOR AT THE TENDER AGE OF 26 HE HAS SPENT HIS CAREER WRITING ABOUT AUDEN TEACHING AUDEN AND EDITING AUDEN NOW MR MENDELSON IS IN THE MIDST OF EDITING A MASSIVE EIGHTVOLUME SERIES FOR PRINCETON UNIVERSITY PRESS THAT WILL BE THE DEFINITIVE EDITION OF AUDEN'S HUGE AND MULTIFARIOUS BODY OF WORK SO FAR MR MENDELSON HAS EDITED AUDEN'S PLAYS 680 PAGES 55 AND LIBRETTI 758 PAGES 4950 THEY RETRIEVE MANY RARE AND PREVIOUSLY UNPUBLISHED FRAGMENTS OF AUDEN'S WRITING LYRICAL VERSE WRITTEN FOR BRITISH DOCUMENTARIES OF THE '30S DRAMATIC COLLABORATIONS WITH CHRISTOPHER ISHERWOOD RADIO PLAYS AND FULLBLOWN LIBRETTI FOR BENJAMIN BRITTEN'S PAUL BUNYAN AND IGOR STRAVINSKY'S THE RAKE'S PROGRESS FEW IF ANY AUDEN FANS HAD READ OR EVEN KNEW ABOUT MUCH OF THIS MATERIAL UNTIL MR MENDELSON DREDGED IT UP FROM DOZENS OF DARK LITERARY CORNERS HE FERRETED OUT NO LESS THAN SEVEN SOURCES FOR THE AUDENISHERWOOD DRAMA OF METAPHYSICAL ALPINISM THE ASCENT OF F6 INCLUDING A DOGEARED PROMPTBOOK FROM THE OLD VIC BRITTEN'S ORIGINAL MUSIC FOR AUDEN'S 1941 RADIO PLAY THE ROCKING HORSE WINNER WAS LOST LOST THAT IS UNTIL MR MENDELSON MANAGED TO LOCATE A BOOTLEGGED RECORDING THROUGH SEMICLANDESTINE CONNECTIONS BACKING UP HIS CRAFTY DETECTIVE WORK WITH LUCID SCHOLARSHIP HE PRESENTS READERS WITH TEXTS THAT ARE VERY CLOSE TO WHAT AUDEN'S ORIGINAL AUDIENCES HEARD RIGHT DOWN TO INAUDIBLE BUT INSOMNIAINDUCING MISTAKES IN PUNCTUATION AND SPELLING REASONING THAT THEY ARE ESSENTIAL TO AUDEN'S VERBAL RHYTHMS AND A COMPONENT OF HIS STYLE MR MENDELSON HAS LEFT MANY OF THOSE MISTAKES INTACT HE HAS EVEN RESTORED SOME AUTHORIAL MISSPELLINGS AUDEN WAS ALSO AN OBSESSIVE REVISER MR MENDELSON EVER A RESPECTER OF THE POET'S INTENTIONS AND QUIDDITIES HAS PUBLISHED EVERY KNOWN VARIATION ON THE TEXTS IN THE BACK OF EACH VOLUME ALONG WITH ESSAYS NOTES AND LETTERS LEAFING THROUGH THESE HANDSOMELY PRODUCED BOOKS A READER SEES WHAT AUDEN MEANT WHEN HE SAID OF MR MENDELSON HE KNOWS MORE ABOUT ME THAN I KNOW MYSELF THAT WAS A LONG TIME AGO MR MENDELSON HAS SPENT MORE THAN TWO DECADES DEEPENING THAT ACQUAINTANCE MAKING A LIFE FOR HIMSELF OUT OF AUDEN'S LIFE'S WORK IN HIS COMFORTABLE UPPER WEST SIDE APARTMENT NEAR COLUMBIA UNIVERSITY WHERE HE IS A PROFESSOR OF ENGLISH AND COMPARATIVE LITERATURE MR MENDELSON RECENTLY TOOK A BREAK FROM EDITING THE THIRD PRINCETON VOLUME PROSE 192638 TO EXPLAIN HOW HE FELL DOWN THIS SCHOLARLY RABBIT HOLE WHEN I WAS AN UNDERGRADUATE AND WROTE POEMS A TEACHER SAID YOU OUGHT TO TAKE A LOOK AT THE EARLY AUDEN' HE RECALLS STILL LOOKING TRIM AND BOYISH AT 47 WITH MORE THAN A GLIMMER OF THE BRAINY FORMER UNIVERSITY OF ROCHESTER STUDENT AND THAT WAS PRETTY MUCH THE END OF MY WRITING POETRY I WAS SO IMPRESSED NOT ONLY BY THE VERBAL POWER BUT THE INTELLIGENCE WITH WHICH HE UNDERSTOOD THE WORLD AS A COLLEGE SENIOR MR MENDELSON PAID A VISIT TO AUDEN WHO HELD AFTERNOON OFFICE HOURS IN HIS EAST VILLAGE APARTMENT ALTHOUGH THE FUTURE AUDENOLOGIST WAS TOO TONGUETIED TO SAY MUCH THE POET KINDLY TALKED AT HIM UNTIL THE VISIT WAS OVER HE HAD NO RECOLLECTION OF ME AFTERWARD BUT AUDEN WAS TO BECOME AN EVERMOREDOMINANT FIGURE IN MR MENDELSON'S LIFE HE WROTE HIS DOCTORAL THESIS ON AUDEN'S POETRY AND AS A 24YEAROLD TEACHER AT YALE BEGAN COMPILING A BIBLIOGRAPHY OF AUDEN'S WORK WITH BC BLOOMFIELD A BRITISH SCHOLAR I HAD HEARD FROM OTHER PEOPLE THAT HE WANTED TO PUT TOGETHER A BOOK OF ESSAYS BUT CLAIMED HE DIDN'T REMEMBER WHAT HE'D WRITTEN MR MENDELSON SAYS PEOPLE TOLD HIM ABOUT A GRADUATE STUDENT WHO WAS GOING AROUND XEROXING EVERYTHING WHEN AUDEN VISITED YALE MR MENDELSON WAS ASSIGNED TO BE HIS CHAPERONE ON CAMPUS HE STEERED THE POET TO HIS COMPLETE COLLECTION OF THE ESSAYS LEAVING HIM IN HIS APARTMENT FOR SEVERAL HOURS TO BROWSE IN HIS FILES THE TWO BEGAN EXCHANGING LETTERS AND ABOUT A YEAR LATER AUDEN SENT HIM A CHECK FOR 150 DEAR MR MENDELSON HE WROTE I'VE COME TO THE CONCLUSION YOU SHOULD SELECT MY ARTICLES AND NOT I HERE IS A CHECK FOR XEROXING WHEN MR MENDELSON WAS WRAPPING UP WORK ON THE BOOK A FEW MONTHS LATER ANOTHER LETTER ARRIVED AT THE END AUDEN HAD WRITTEN PS WOULD YOU BE MY LITERARY EXECUTOR ON THE FACE OF IT THE TWO MEN COULDN'T HAVE BEEN MORE DIFFERENT AUDEN WAS A GAY MAN WHO BECAME A COMMITTED CHRISTIAN MR MENDELSON A NATIVE NEW YORKER IS JEWISH AND HETEROSEXUAL HE IS NOW MARRIED AND HAS A 2 1/2YEAROLD SON THEY NEVER SOCIALIZED MUCH IN ONE OF THEIR MORE INTIMATE EXCHANGES THE POET SUGGESTED THAT MR MENDELSON TRY A BRAND OF DAIRY CREAMER HE LIKED BUT AUDEN SAW IN THE YOUNGER MAN SOMEONE HE COULD TRUST TO DO THE RIGHT THING BY HIS WORK IN 1972 A YEAR BEFORE AUDEN'S DEATH MR MENDELSON PAID HIM A VISIT THEY DISCUSSED A NEW EDITION OF COLLECTED POEMS AUDEN WANTED TO PUBLISH FOR THE PAST 21 YEARS MR MENDELSON HAS DONE EXACTLY THAT ON AUDEN'S DEATH HIS FIRST TASK WAS TO PUBLISH A NOTICE ON BOTH SIDES OF THE ATLANTIC REQUESTING ANY FRIENDS WHO HAVE LETTERS FROM ME TO BURN THEM WHEN THEY'RE DONE WITH THEM AND ON NO ACCOUNT TO SHOW THEM TO ANYONE ELSE HE DID SO BUT DID HE BURN HIS OWN LETTERS FROM AUDEN NO OF COURSE NOT HE DECLARES IT'S SAFE TO ASSUME HE WILL NEVER BE DONE WITH THEM THE JOB OF EXECUTOR HAS DOVETAILED NEATLY WITH MR MENDELSON'S OWN SCHOLARSHIP THE AUTHOR OF THE RESPECTED CRITICAL BOOK EARLY AUDEN HE IS NOW AT WORK ON LATER AUDEN THE TITLE OF EXECUTOR HAS BEEN THE KIND OF PASSPORT SCHOLARS DREAM OF EVEN WINNING HIM ENTREE TO LONDON'S ST JAMES PALACE WHERE GOVERNMENT FILES ABOUT AUDEN'S PLAYS VIEWED SUSPICIOUSLY IN THE MID1930S FOR THEIR MOCKERY OF HITLER WERE KEPT I WENT UP IN MY RATTY SUIT HE SAYS IT WAS CERTAINLY THE NICEST FURNITURE ON WHICH I'VE EVER DONE RESEARCH TO PAY FOR HIS PLANE TICKETS TO AUDENRELATED SITES HE REVIEWS COMPUTERS AND SOFTWARE FOR PC MAGAZINE WHERE HE IS A CONTRIBUTING EDITOR AND FOR VARIOUS LITERARY PUBLICATIONS IT HAS NO MORAL INTELLIGENCE HE SHRUGS OF THE WORK UNLIKE HIS NONCYBERNETIC RESEARCH ON AUDEN'S PROSE WHICH WILL FILL THE NEXT FOUR VOLUMES HE HAS SAVED THE HARDEST PART OF THE PRINCETON EDITION TWO VOLUMES OF POETRY WHICH WILL APPEAR EARLY IN THE NEXT MILLENNIUM FOR LAST AUDEN HEAVILY REVISED AND IN SOME CASES REPUDIATED POEMS AS DISHONEST YEARS AFTER HE HAD WRITTEN THEM ONE OF HIS MOST FAMOUS POEMS SEPTEMBER 1 1939 THE DATE HITLER INVADED POLAND ORIGINALLY ENDED WITH THE LINE WE MUST LOVE ONE ANOTHER OR DIE AUDEN CAME TO VIEW THAT LINE AS A PIECE OF FALSE RHETORIC AND DROPPED THE LAST STANZA IN THE '60S HE DISOWNED THE POEM ALTOGETHER FOR THE FORTHCOMING EDITION MR MENDELSON HAS DECIDED TO PRINT ALL THE POEMS IN THE VERSIONS THAT READERS FIRST ENCOUNTERED OR THE REVISED VERSIONS PUBLISHED SOON AFTER LATER REVISIONS WILL BE PRINTED IN THE BACK OF THE VOLUME THE VOLUMES WILL INCLUDE EVERYTHING FROM AUDEN'S JUVENILIA TO A FAMOUS PIECE OF NEVERACKNOWLEDGED PORNOGRAPHY AS EVER THE CHALLENGE FOR MR MENDELSON WILL BE TO CREATE THE BOOK THAT AUDEN HIMSELF AN ETERNAL AUDEN STANDING OUTSIDE OF TIME WOULD HAVE WANTED 9401200013 940120 WHO'S NEWS MUNSINGWEAR INC MUNSINGWEAR INC MINNEAPOLIS LOWELL M FISHER A BOARD MEMBER SINCE 1990 WHO HAS BEEN SERVING AS INTERIM CHIEF EXECUTIVE OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF MEN'S AND BOYS' APPAREL HE SUCCEEDS CHARLES CAMPBELL WHO RESIGNED IN JULY 9401200012 940120 TAXABLEFUND YIELDS WERE GENERALLY OFF IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE GENERALLY DOWN IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS DECLINED TO 272 FROM 275 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 269 FROM 271 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 272 THE 30DAY COMPOUND YIELD SLID TO 275 FROM 276 ASSETS OF 637 TAXABLE FUNDS TWO MORE THAN THE PREVIOUS WEEK ROSE BY 475 BILLION TO 49393 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 284 BILLION OF THE INFLOW INDIVIDUAL INVESTORS PUT IN 190 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE CHANGES IN YIELDS AND ASSETS TO SEASONAL ADJUSTMENTS THIS SHOULD BE THE LAST WEEK FOR THESE SEASONAL CHANGES BRINGING THINGS BACK TO NORMAL MR FRANK SAID AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 59 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD EASED TO 168 FROM 174 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 263 FOR SOMEONE PAYING 36 IN TAXES AND TO 278 FOR THOSE PAYING 396 MR FRANK SAID THAT THE SCARCITY OF NEW ISSUES WAS RESPONSIBLE FOR THE DECLINE IN TAXEXEMPT YIELDS ASSETS OF 340 TAXEXEMPT FUNDS ONE MORE THAN LAST WEEK DECREASED BY 332 MILLION TO 11168 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 58 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9401200011 940120 POLITICS & POLICY POLL FINDS CLINTON'S POPULARITY IS ON THE RISE DESPITE MEDIA FOCUS ON WHITEWATER PRIVATE LIFE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THOUGH THERE ARE CLEAR HINTS OF TROUBLE FOR HIM OVER THE LONG HAUL PRESIDENT CLINTON AT THE MOMENT IS DEFYING THE POLITICAL LAWS OF GRAVITY AFTER A MONTH OF NEGATIVE STORIES ABOUT HIS BUSINESS DEALINGS AND PERSONAL LIFE THAT SEEMED SURE TO DRAG DOWN HIS STANDING WITH THE PUBLIC MR CLINTON'S APPROVAL RATING IS RISING IN A NEW WALL STREET JOURNAL/NBC NEWS POLL 60 OF THOSE SURVEYED APPROVE OF THE JOB MR CLINTON IS DOING AS PRESIDENT THAT'S UP FROM 56 IN A SURVEY TAKEN LAST MONTH JUST BEFORE A SPATE OF STORIES THAT RAISED QUESTIONS ABOUT MR CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CO AND HIS PERSONAL LIFE AS GOVERNOR OF ARKANSAS AND THE APPROVAL RATING IS A FULL 10 POINTS HIGHER THAN IT WAS JUST FOUR MONTHS AGO BY CONTRAST 31 SAY THEY DISAPPROVE OF MR CLINTON'S JOB PERFORMANCE THE FINDINGS SUGGEST TWO IMPORTANT CHARACTERISTICS OF MR CLINTON'S RELATIONSHIP WITH THE AMERICAN PEOPLE FIRST AMERICANS ARE BASING THEIR PERCEPTION OF THE PRESIDENT BY AND LARGE ON GENERAL ECONOMIC TRENDS AND AN OVERALL PERCEPTION OF HIS FOREIGNPOLICY COMPETENCE AND SECOND THE PUBLIC SEEMS TO THINK STORIES ABOUT MR CLINTON'S PAST LIFE HAVE ONLY LIMITED RELEVANCE TO HIS CURRENT PERFORMANCE CLINTON IS DOING SIGNIFICANTLY BETTER SAYS REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE JOURNAL/NBC SURVEY ALONG WITH DEMOCRATIC POLLSTER PETER HART WHAT HAS CAUSED THAT ARE A BETTER ECONOMY AND SOME FOREIGNPOLICY SUCCESS BUT BOTH MESSRS TEETER AND HART POINT OUT THAT THE POLL SHOWS A CLOUD FLOATING ABOVE MR CLINTON THOUGH THE BATTERING OF NEGATIVE STORIES HASN'T HURT PUBLIC VIEWS OF THE PRESIDENT'S JOB PERFORMANCE THEY CLEARLY HAVE ERODED AMERICANS' CONFIDENCE IN HIS TRUTHFULNESS AND HIS PERSONAL VALUES MOREOVER THOSE FEELINGS OPEN MR CLINTON TO CRITICISM ON THE CHARACTER ISSUE WHICH FIGURED SO PROMINENTLY IN THE 1992 PRESIDENTIAL CAMPAIGN AND SEEMS LIKELY TO CONTINUE TO DOG HIM WHEN ASKED TO RATE MR CLINTON'S ETHICAL AND MORAL VALUES 33 OF THOSE SURVEYED NOW GIVE THE PRESIDENT GOOD MARKS THAT'S DOWN FROM 43 JUST THREE MONTHS AGO AND 50 AT THE OUTSET OF HIS ADMINISTRATION REPUBLICANS HAVE HINTED IN THE LAST FEW WEEKS THAT THEY EXPECT TO DIRECT THEIR CRITICISM OF THE PRESIDENT IN PRECISELY THIS AREA THE GENERAL QUESTION OF PERSONAL CREDIBILITY RATHER THAN AT THE DETAILS OF THE WHITEWATER CONTROVERSY REPUBLICAN NATIONAL COMMITTEE CHAIRMAN HALEY BARBOUR ASSERTED TO A GROUP OF REPORTERS LAST WEEK THAT CREDIBILITY IS THE LINCHPIN OF ANY OFFICE OF AUTHORITY AND REPUBLICAN NATIONAL COMMITTEE SPOKESMAN CHUCK GREENER REASSERTED YESTERDAY THAT THIS IS THE THING THAT WILL BE AN UNDERLYING CONCERN FOR QUITE SOME TIME FOR NOW THOUGH MR CLINTON CAN BE CHEERED BY THE FACT THAT AMERICANS ARE GIVING HIM HIGHER MARKS ON HANDLING BOTH THE ECONOMY AND FOREIGN AFFAIRS PRECISELY HALF THOSE SURVEYED SAY THEY APPROVE OF HIS HANDLING OF ECONOMIC AFFAIRS A SIGN THAT PEOPLE ARE FEELING PRETTY GOOD ABOUT THE ECONOMY SAYS MR HART BY CONTRAST JUST 40 APPROVED OF HIS HANDLING OF THE ECONOMY BACK IN OCTOBER AND THE PERCEPTION OF MR CLINTON'S FOREIGNPOLICY SKILLS CLEARLY WERE ENHANCED BY LAST WEEK'S TRIP TO WESTERN EUROPE AND RUSSIA THE SURVEY BEGUN JUST AS THAT WEEKLONG TRIP WAS ENDING FOUND THAT 53 APPROVE OF HIS HANDLING OF FOREIGN POLICY UP SHARPLY FROM 33 IN OCTOBER IN GENERAL THE SURVEY SUGGESTS THAT AMERICANS ARE MODERATELY CONCERNED WITH THE WHITEWATER AFFAIR IN WHICH QUESTIONS HAVE BEEN RAISED ABOUT THE CLINTONS' INVESTMENT IN THE REALESTATE DEVELOPMENT COMPANY AND THEIR INVOLVEMENT WITH A RELATED SAVINGS AND LOAN THAT WENT UNDER BUT IT SHOWS SIGNIFICANTLY LESS PUBLIC CONCERN ABOUT ALLEGATIONS LEVELED BY ARKANSAS STATE TROOPERS OF SEXUAL MISCONDUCT BY MR CLINTON WHILE HE WAS GOVERNOR BY A SLIGHT MARGIN A PLURALITY OF AMERICANS SEEM INCLINED TO BELIEVE MR CLINTON'S EXPLANATIONS OF HIS ROLE IN THE WHITEWATER FLAP THOSE SURVEYED WERE ASKED WHETHER THEY BELIEVE THE PRESIDENT'S CRITICS WHO SAY HE IS CONCEALING INFORMATION ABOUT HIS AND HIS WIFE'S INVOLVEMENT WITH WHITEWATER TO HIDE EMBARRASSING OR EVEN ILLEGAL BEHAVIOR OR MR CLINTON WHO SAYS THAT HE SIMPLY LOST MONEY ON THE DEAL AND THAT ALL IMPORTANT FACTS ARE KNOWN BY A 43 TO 36 MARGIN THOSE SURVEYED SAY THEY BELIEVE THE PRESIDENT IN FACT THERE ARE SIGNS IN THE SURVEY THAT THE PARAMOUNT ISSUE TO THE PUBLIC IS WHETHER MR CLINTON IS TELLING THE TRUTH RATHER THAN THE DETAILS OF HIS INVOLVEMENT WITH WHITEWATER AMONG THOSE WHO CALL WHITEWATER AN IMPORTANT ISSUE 59 SAY THEY BELIEVE MR CLINTON'S CRITICS WHILE JUST 21 SAY THEY BELIEVE THE PRESIDENT BUT OVERALL THREEQUARTERS OF THOSE SURVEYED SAY THE WHITEWATER STORY HASN'T AFFECTED THEIR OPINION OF MR CLINTON WHILE 21 SAY IT HAS MADE THEIR OPINION OF HIM LESS FAVORABLE AND 61 SAY THAT IT IS UNNECESSARY TO FORM A SPECIAL CONGRESSIONAL PANEL TO LOOK INTO WHITEWATER NOW THAT MR CLINTON HAS ASKED FOR A SPECIAL COUNSEL TO INVESTIGATE AMONG OTHER THINGS FINDINGS SUCH AS THOSE IN THE NEW SURVEY ARE BOUND TO RAISE QUESTIONS ABOUT THE MEDIA WHICH HAVE DEVOTED GREAT ATTENTION TO THE WHITEWATER AND STATETROOPER STORIES WHICH THE PUBLIC SEEMS TO CONSIDER OF ONLY MODEST IMPORTANCE THERE REALLY IS AN INSIDETHEBELTWAY MENTALITY AND IT DOES AFFECT THE PRESS JUST AS IT AFFECTS MEMBERS OF CONGRESS AND POLITICAL APPOINTEES IN THE EXECUTIVE BRANCH SAYS STEPHEN HESS AN ANALYST OF POLITICS AND THE PRESS AT THE BROOKINGS INSTITUTION AND WE GET TERRIBLY INVOLVED IN TALKING TO EACH OTHER 9401200010 940120 LETTERS TO THE EDITOR BULLY BEAT US BUT WE SURVIVED YOUR JAN 4 EDITORIAL POSTAL BULLY STRUCK HOME BOYD'S CITY DISPATCH FOUNDED IN NEW YORK CITY IN THE 1840S AS ONE OF THE NATION'S FIRST PRIVATE POSTAL DELIVERY SERVICES WAS DRIVEN OUT OF THE POSTAL DELIVERY BUSINESS AS A RESULT OF THE PRIVATE EXPRESS STATUTES OF 1872 BOYD'S ISSUED ITS OWN STAMPS HAD UNIFORMED EMPLOYEES AND INSTALLED POSTAL BOXES IN RETAIL BUSINESSES AROUND MANHATTAN FOR ONE PENNY YOU COULD BE ASSURED OF NEXTDAY DELIVERY BOYD'S CONNECTED WITH OTHER PRIVATE DELIVERY SERVICES UP AND DOWN THE EAST COAST AND WAS A HIGHLY REGARDED COMPETITOR TO THE POSTAL SERVICE SO OF COURSE IT WAS FORCED OUT OF THE POSTALDELIVERY BUSINESS FORTUNATELY BOYD'S HAD DEVELOPED A SIDELINE OF PROVIDING MAILING LISTS TO FINANCIALSERVICES COMPANIES AND FUNDRAISING ORGANIZATIONS WHICH IT CONTINUES TO THIS DAY AS ONE OF THE OLDEST CONTINUOUSLY OPERATED COMPANIES IN AMERICA THE PUBLIC'S SHIFT TO USE OF FEDERAL EXPRESS UPS FAXING EMAIL ETC RATHER THAN THE US POSTAL SERVICE IS BORN OF NECESSITY THE USPS WILL NOT BE ABLE TO FORCE BULLY THREATEN OR FINE THE PUBLIC INTO RETURNING TO THE POSTAL SERVICE'S FRUSTRATING INEFFICIENCIES NOW THAT THEY'VE EXPERIENCED THE CONSISTENTLY GOOD AND RELIABLE SERVICE OF THE PRIVATE CARRIERS THE USPS WOULD BE BETTER ADVISED TO CONCENTRATE ITS ENERGY ON IMPROVING THE QUALITY OF ITS SERVICE RATHER THAN INTIMIDATING MAIL CLERKS 9401200009 940120 BUSINESS BRIEF UST INC FOURTHQUARTER PROFIT ROSE 86 ON STRONG SALES GAINS UST INC REPORTED AN 86 INCREASE IN FOURTHQUARTER EARNINGS CITING SALES GAINS IN ITS MOIST SMOKELESS TOBACCO BUSINESS NET INCOME ROSE TO 868 MILLION OR 41 CENTS A SHARE FROM 799 MILLION OR 36 CENTS A SHARE A YEAR EARLIER SALES ROSE 6 TO 2867 MILLION FROM 2711 MILLION UST GREENWICH CONN SAID DOMESTIC UNIT VOLUME FOR THE QUARTER WHICH INCLUDED ONE LESS SHIPPING DAY THAN LAST YEAR WAS DOWN SLIGHTLY MOIST TOBACCO PRODUCT SHIPMENTS WOULD HAVE INCREASED 3 ON AN EQUIVALENT SHIPPING DAY BASIS FOR THE QUARTER THE COMPANY SAID FOR THE YEAR VOLUME INCREASED 23 OR 31 ON A SHIPPING EQUIVALENT BASIS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE UST SHARES CLOSED AT 28125 DOWN 50 CENTS EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE STOCK DROPPED BECAUSE OF A SLOWDOWN IN UNIT VOLUME FOR THE YEAR ACCORDING TO GARY BLACK AN ANALYST AT SANFORD C BERNSTEIN & CO IN NEW YORK 9401200008 940120 JAYARK TO BUY BACK SHARES HOUSTON JAYARK CORP APPROVED A BUYBACK OF 500000 COMMON SHARES THE COMPANY SAID IT MAY USE THE REPURCHASED STOCK IN CONNECTION WITH ITS EMPLOYEE STOCK OPTION PLAN OR OTHER USES JAYARK SAID THERE ARE 6704848 SHARES OUTSTANDING AND AN ADDITIONAL 128400 SHARES PREVIOUSLY REPURCHASED AND RETAINED IN THE TREASURY 9401200007 940120 ONE MESSY STORE CHICANERY AT PHARMOR RAN DEEP CLOSE LOOK AT DISCOUNTER SHOWS MASSAGING OF BOOKS MASKED LOSSES WHILE CONFLICTS OF INTEREST PROLIFERATED EARLY WARNINGS UNHEEDED BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL YOUNGSTOWN OHIO DRY GOODS WERE PHARMOR'S BUSINESS BUT SOME OF ITS BOSSES HAD A TASTE FOR RAISIN COOKIES SCHEMERS IN THE RETAILER'S EXECUTIVE SUITE KEPT TWO SETS OF RECORDS AN OFFICIAL LEDGER THAT THEY SOMETIMES MANIPULATED WITH FALSE ENTRIES AND ANOTHER NICKNAMED THE COOKIES WHERE THEY KEPT TRACK OF THE FALSE ENTRIES CALLED RAISINS THEY WOULD REFER TO THEIR LEGERDEMAIN AS PUTTING RAISINS IN THE COOKIES IT'S BEEN KNOWN THAT PHARMOR INC HAD A SCANDAL BUT FEW SUSPECTED IT WAS QUITE THIS ELABORATE THE ONCESOARING MIDWESTERN DISCOUNT RETAILER IS OPERATING IN BANKRUPTCY PROTECTION THESE DAYS AFTER DISCLOSING 18 MONTHS AGO THAT IT WAS THE TARGET OF A FRAUD AND EMBEZZLEMENT SCHEME BY SOME OF ITS TOP EXECUTIVES AMID THREE INDICTMENTS AND TWO GUILTY PLEAS BY FORMER EXECUTIVES PHARMOR HAS SLIMMED DOWN AND CONTINUED OPERATING WITH ITS UNCONVENTIONAL STRATEGY OF ULTRALOW PRICES ON A JUMBLE OF MIXANDMATCH GOODS OFTEN HEAPED TO THE CEILING BUT NOW IT APPEARS THAT LOSSES TO PHARMOR STEMMING FROM THE INTERNAL FRAUD TOTALED 1 BILLION DOUBLE PREVIOUS ESTIMATES IN FACT PHARMOR A PRIVATE COMPANY THAT DREW SEVERAL BIGNAME INVESTORS THAT INVESTMENT BANKERS WERE CLAMORING TO TAKE PUBLIC AND THAT SAM WALTON ONCE CALLED THE RIVAL THAT MOST WORRIED HIM NEVER EARNED A PENNY OF PROFIT IN THE FIVE YEARS BEFORE IT FILED FOR CHAPTER 11 IN AUGUST 1992 MOREOVER CHAIRMAN AND COFOUNDER DAVID SHAPIRA WHO HAS PORTRAYED HIMSELF AS UNAWARE OF A FRAUD LED BY HIS NOWINDICTED COFOUNDER WAS HANDED REDFLAG WARNINGS OF CHICANERY YEARS BEFORE IT CAME TO LIGHT IN ONE CASE WHEN HIS GENERAL COUNSEL GAVE HIM A MEMO WARNING OF INADEQUATE FINANCIAL CONTROLS AND CONFLICTS OF INTEREST INVOLVING A TOP EXECUTIVE AND A DIRECTOR MR SHAPIRA TOLD HER TO RIP IT UP ALL IN ALL A PICTURE EMERGES FROM INTERVIEWS INDICTMENTS AND NOW A COURTORDERED REPORT OF PHARMOR AS A THICKET OF CONFLICTS OF INTEREST CORPORATE NEGLIGENCE AND OUTRIGHT CORRUPTION FOR SIX YEARS SOME OFFICIALS SEEMINGLY USED THE COMPANY AS THEIR PERSONAL PLAYTHING FALSIFYING FINANCIAL LEDGERS AND ALLEGEDLY RAIDING COMPANY COFFERS THEIR EXCESSES EXTENDED TO HIRING CHEERLEADERS IN HOT PANTS TO ESCORT THEM AROUND LAS VEGAS ACCORDING TO ALLEGATIONS IN THE REPORT BY COURTAPPOINTED EXAMINER JAY ALIX WHO ALONG WITH LAWYERS TOOK DEPOSITIONS AND SUBPOENAED DOCUMENTS FOR NEARLY A YEAR AMONG OTHER THINGS HIS TWOVOLUME REPORT SAYS THAT SEVERAL DIRECTORS INCLUDING CHAIRMAN SHAPIRA EXERCISED STOCK OPTIONS AFTER THEIR EXPIRATION DATE BY SIGNING BACKDATED PROMISSORY NOTES SOME OF THOSE SHARES THEY SOLD BACK TO THE COMPANY 11 MONTHS LATER AT A SUBSTANTIAL PROFIT ACCORDING TO THE REPORT WHICH WAS SUBMITTED YESTERDAY TO US BANKRUPTCY JUDGE WILLIAM T BODOH IN YOUNGSTOWN CHAIRMAN SHAPIRA ASKED IF HE DIDN'T HAVE REASON TO SUSPECT FRAUD WELL BEFORE IT WAS REVEALED IN MID1992 SAYS THAT ALL ALONG WE GOT CONSISTENT AUDITS AND UNQUALIFIED FINANCIAL STATEMENTS FROM EXTREMELY QUALIFIED ACCOUNTANTS THERE WERE NUMEROUS DUE DILIGENCES BY SOME OF THE MOST SOPHISTICATED INVESTORS EVERYONE CAME TO THE SAME CONCLUSION THAT THIS WAS A SOUND COMPANY GROWING QUICKLY HE ADDS THAT OBVIOUSLY THIS IS A DISASTER BUT I NEVER SAW ANYTHING TAKEN IN CONTEXT OF ALL THE POSITIVE INFORMATION THAT GAVE ME THE SLIGHTEST HINT THE OPTIONS MANEUVER HE SAYS WAS PROPERLY DONE IN CONSULTATION WITH LAWYERS AND ACCOUNTANTS THE FACT IS THAT WHAT WE WERE DOING WAS INVESTING MONEY DIRECTLY INTO PHARMOR WE HAD NO IDEA WHATSOEVER THAT WE COULD SELL THE STOCK BACK TO THE COMPANY LATER PHARMOR'S TAILSPIN BEGAN 18 MONTHS AGO WHEN THE GROWING RETAILER DISCLOSED THAT IT APPARENTLY WAS THE TARGET OF FRAUD AND EMBEZZLEMENT MASTERMINDED BY THE COMPANY'S THEN PRESIDENT MICHAEL I MICKEY MONUS PHARMOR'S COFOUNDER MR MONUS HAS SINCE BEEN INDICTED ON 129 FEDERAL COUNTS PLEADED NOT GUILTY AND FACES TRIAL FEB 14 IN CLEVELAND A FOUNDER OF THE NOWDEFUNCT WORLD BASKETBALL LEAGUE AND ONETIME INVESTOR IN THE COLORADO ROCKIES BASEBALL TEAM HE IS ACCUSED AMONG OTHER THINGS OF DIVERTING ABOUT 15 MILLION FROM PHARMOR MUCH OF IT TO PROP UP THE FAILING LEAGUE FORMER CHIEF FINANCIAL OFFICER PATRICK FINN AND JEFFREY WALLEY WHO WAS VICE PRESIDENT OF FINANCE ARE COOPERATING WITH AUTHORITIES AND HAVE PLEADED GUILTY TO FEDERAL CHARGES JOHN D SAMMON AN ASSISTANT US ATTORNEY IN CLEVELAND SAYS THAT THE INVESTIGATION IS CONTINUING MR MONUS'S POSITION IS THAT THE FRAUD WAS COMMITTED UNBEKNOWNST TO HIM BY MR FINN AND PEOPLE WHO REPORTED TO MR FINN SAYS HIS ATTORNEY RICHARD GOLDBERG WHEN MR MONUS STARTED FINDING IRREGULARITIES AROUND JUNE 1992 HE COMMENCED HIS OWN INVESTIGATION MR GOLDBERG SAYS AND WAS CONDUCTING THAT PROBE WHEN MR SHAPIRA HELD A NEWS CONFERENCE TO DISCLOSE THE FRAUD AND ACCUSED MR MONUS OF SPEARHEADING IT PHARMOR DIRECTORS AND OFFICERS FACE LAWSUITS AS DOES GIANT EAGLE INC A SUPERMARKET CHAIN PARTLY OWNED BY MR SHAPIRA AND SEVERAL DIRECTORS GIANT EAGLE HAD A 383 STAKE IN PHARMOR WHEN THE DISCOUNT CHAIN FILED FOR CHAPTER 11 ACCORDING TO THE ALIX REPORT CERTAIN PHARMOR EXECUTIVES USED FINANCIAL STATEMENTS SHOWING HEALTHY MARGINS AND PROFITS TO OBTAIN MORE THAN 1 BILLION OF CREDIT AS WELL AS CAPITAL FOR THE COMPANY FROM INVESTORS THAT INCLUDED SEARS ROEBUCK & CO WESTINGHOUSE ELECTRIC CORP MALL DEVELOPER EDWARD DEBARTOLO SR AND CORPORATE PARTNERS AN AFFILIATE OF LAZARD FRERES BUT PHARMOR ACTUALLY HAD 238 MILLION IN PRETAX LOSSES IN 1992 ALONE ACCORDING TO THE ALIX REPORT SHORTLY AFTER DISCLOSING THE APPARENT FRAUD PHARMOR DISMISSED ITS AUDITORS COOPERS & LYBRAND COOPERS'S POSITION IS THAT IT TOO WAS A TARGET OF THE FRAUD IT IS SUING PHARMOR AND PHARMOR IS SUING IT MR ALIX SAYS THAT HE DISCOVERED NOTHING WHICH INDICATES DAVID SHAPIRA KNEW OF OR PARTICIPATED IN THE FRAUD STILL WHILE PHARMOR WOWED INVESTORS DONALD ROBINSON A FORMER PHARMOR DIRECTOR RAISED QUESTIONS AS LONG AGO AS 1988 ABOUT POSSIBLE CONFLICTS BETWEEN MICKEY MONUS'S DUTIES AT PHARMOR AND HIS INTERESTS IN SUPPLIERS THE BOARD ASKED ITS OUTSIDE FINANCIAL ADVISER TO LOOK INTO IT MR SHAPIRA SAYS THIS WAS A RED FLAG AND THAT THE BOARD ASKED MR MONUS AND HIS FATHER NATHAN WHO WAS A DIRECTOR TO DISCLOSE ALL OUTSIDE INTERESTS AND SELL ANY THAT POSED CONFLICTS ONLY LATER MR SHAPIRA ADDS DID HE LEARN THAT THE MONUSES HAD DISCLOSED ONLY SOME OF THEIR OUTSIDE INTERESTS ANOTHER FLAG WENT UP IN NOVEMBER 1990 A FINANCE STAFFER WHO WAS APPARENTLY IN ON THE FRAUD ACCIDENTALLY SENT MR SHAPIRA AN ACCURATE FINANCIAL REPORT SHOWING DEEP LOSSES ACCORDING TO FEDERAL INDICTMENTS AND THE ALIX REPORT MR SHAPIRA SUMMONED CFO MR FINN TO PITTSBURGH WHERE THE CHAIRMAN CARRIED OUT HIS OTHER ROLE AS CHIEF EXECUTIVE OF GIANT EAGLE MR FINN TOLD EXAMINER MR ALIX IN A DEPOSITION THAT HE CONVINCED MR SHAPIRA THE REPORT WAS ONLY PRELIMINARY MR SHAPIRA SAYS HE DOESN'T REMEMBER THE INCIDENT BUT SPEAKING HYPOTHETICALLY I GOT REPORTS ABOUT PHARMOR EVERY DAY SAY ONE DAY A REPORT COMES THAT IS INCONSISTENT WITH ALL THE OTHER INFORMATION I'VE GOTTEN I CALL UP THE CHIEF FINANCIAL OFFICER AND SAY WHAT'S THE MATTER AND HE GIVES A REASONABLE EXPLANATION THAT I ACCEPT IS THAT A FLAG THEN IN JUNE 1991 ABOUT A YEAR BEFORE MR SHAPIRA SAYS HE LEARNED OF THE FRAUD HE GOT A MEMO FROM PHARMOR GENERAL COUNSEL CHARITY IMBRIE RAISING SERIOUS QUESTIONS THE MEMO WHICH PHARMOR FOUGHT TO KEEP AWAY FROM THE COURTAPPOINTED EXAMINER WAS FIRST MADE PUBLIC YESTERDAY AS PART OF HIS REPORT MS IMBRIE'S MEMO ASKED WHETHER PHARMOR HAD PAID FOR IMPROVEMENTS TO A VIDEO STUDIO PARTOWNED BY MICKEY MONUS AND WHETHER THE RETAILER WAS USING INADEQUATE TELEPHONE EQUIPMENT BECAUSE OF NATHAN MONUS'S INTEREST IN A PHONELEASING CONCERN THE MEMO QUESTIONED WHY PHARMOR STORES WERE SELLING SPORTS CLOTHES FROM THE WORLD BASKETBALL LEAGUE AND THE COLORADO ROCKIES IT EXPRESSED CONCERN THAT THE COMPANY WAS PRESSURING SUPPLIERS TO SPONSOR THE BASKETBALL LEAGUE AND THAT PHARMOR EMPLOYEES WERE WORKING ON THE MONUSES' PRIVATE VENTURES ON COMPANY TIME MS IMBRIE WROTE THAT PHARMOR LACKED ADEQUATE CONTROLS ON CASH DISTRIBUTION AND EMPLOYEEBUSINESS EXPENSES AND FACED A CONSTANT CASHFLOW PROBLEM THAT HAD VENDORS FURIOUS ABOUT LATE PAYMENT DESCRIBING MICKEY MONUS'S BEHAVIOR AT A REALESTATE CONVENTION IN LAS VEGAS MS IMBRIE WROTE HE IS PUTTING TOGETHER THE ALL AMERICAN CHEERLEADERS FOR THE WBL TWO OF THE CHEERLEADERS SERVED AS OUR HOSTESSES IN LAS VEGAS THEY BOTH WORE HOT PANTS AND ONE SPORTED AN ANKLE TATTOO SHE ALSO SUGGESTED PHARMOR WAS LIVING BEYOND ITS MEANS QUESTIONING WHY THE COMPANY WAS ORDERING 30000 WORTH OF NICOLE MILLER TIES SUPPOSEDLY TO BE GIVEN AWAY AT PHARMOR SPORTING EVENTS SUCH AS THE GOLF AND TENNIS TOURNAMENTS THE MEMO'S LAST PAGE CONTAINS HANDWRITTEN NOTES MS IMBRIE TOLD COURT EXAMINER MR ALIX THAT SHE WROTE AFTER MEETING WITH MR SHAPIRA MET JUNE 4 1991 WITH DAVID GAVE HIM THIS MEMO HE ASKED ME TO RIP UP ALL COPIES HE RIPPED UP THE ONE I GAVE HIM SAID HE WAS AWARE OF MOST OF THE ITEMS LISTED IN THIS MEMO SAID IT WAS PARTICULARLY IMPORTANT TO RIP IT UP NOW BECAUSE OF PENDING FINANCING/STOCK SALE WITH CP CP MEANT CORPORATE PARTNERS THE LAZARD AFFILIATE MS IMBRIE DIDN'T DESTROY HER COPY OF THE MEMO MR SHAPIRA SAYS HE TOLD HER TO RIP THE MEMO UP BECAUSE THERE ARE STATEMENTS IN IT WHICH ARE DEFAMATORY AND BLATANTLY UNTRUE I DON'T THINK DOCUMENTS LIKE THAT SHOULD BE PART OF THE CORPORATE RECORD BUT I TOLD CHARITY TO MAKE SURE CONFLICTS WERE DISCLOSED TO CORPORATE PARTNERS CORPORATE PARTNERS DECLINES TO COMMENT A PERSON CLOSE TO THE INVESTMENT FUND SAYS THAT IT WASN'T TOLD ABOUT MONUS OUTSIDE INTERESTS DETAILED IN THE MEMO AND ABOUT SPORTS APPAREL LINKED TO MR MONUS'S TEAMS BEING SOLD IN PHARMOR STORES AMONG OTHER THINGS HAD THE IMBRIE MEMO OR ITS CONTENTS BEEN DISCLOSED TO CORPORATE PARTNERS IT WOULDN'T HAVE INVESTED IN PHARMOR THIS PERSON CONTENDS MR SHAPIRA SAYS HE WAS TOLD PHARMOR HADN'T PAID FOR RENOVATIONS TO THE MONUS VIDEO STUDIO HE SAYS THERE WAS NOTHING IMPROPER ABOUT USING PHONE EQUIPMENT FROM A LEASING COMPANY PARTLY OWNED BY NATHAN MONUS NOR ABOUT SELLING SPORTS CLOTHES FROM THE WORLD BASKETBALL LEAGUE AND THE COLORADO ROCKIES REGARDING BUSINESS EXPENSES I THOUGHT THAT TO HAVE A SYSTEM WHERE ALL EXPENSES WERE APPROVED BY THE CFO WAS AN EXTRA SAFEGUARD I DO FEEL STUPID ABOUT IT NOW THAT I WAS TAKEN IN BY THESE GUYS AS FOR MR MONUS'S BEHAVIOR IN LAS VEGAS MR SHAPIRA SAYS I FELT MICKEY WAS A TRUE MERCHANDISING GENIUS AS DID EVERYBODY ELSE BUT SOME PEOPLE FELT HE WAS OBNOXIOUS AND HE HAD A VERY HIGH LIFESTYLE SO DO YOU FIRE HIM AND RISK ALL THIS SHAREHOLDER VALUE MEANWHILE FROM 1986 OR 1987 TO 1992 MICKEY MONUS AND SOME UNDERLINGS OVERSTATED INVENTORY LEVELS AND OTHER ASSETS AND UNDERSTATED LIABILITIES AND OTHER EXPENSES ACCORDING TO THE INDICTMENT AND TO PHARMOR THIS ENABLED THEM TO DISGUISE SHRINKING PROFIT MARGINS AND JUSTIFY THEIR CLAIMS TO PERFORMANCEBASED PAY WHILE MAINTAINING VITAL ACCESS TO CAPITAL AND CREDIT MARKETS AND A CHANCE AT SOMEDAY GOING PUBLIC AS PHARMOR'S FINANCES DETERIORATED THEY RELIED ON PAYMENTS FROM SUPPLIERS TO HIDE LOSSES MANUFACTURERS RANGING FROM COCACOLA ENTERPRISES INC TO FUJI PHOTO FILM CO TO GIBSON GREETINGS INC PAID A TOTAL OF 138 MILLION FROM 1988 TO 1992 IN EXCHANGE FOR PHARMOR'S PROMISE NOT TO DEAL WITH RIVAL BRANDS AN UNUSUAL BUT NOT ILLEGAL PRACTICE IN ADDITION PHARMOR FUNDS WERE DIVERTED TO HELP PAY FOR THE CONSTRUCTION OF MICKEY MONUS'S SHOWY YOUNGSTOWN MANSION AND SECURITY NEEDS A TOTAL OF 180925 ACCORDING TO THE ALIX REPORT HIS FATHER THENDIRECTOR NATHAN MONUS RECEIVED 16990 FROM PHARMOR TO PAY FOR MEALS AT THE PALM BEACH COUNTRY CLUB NATHAN MONUS'S ATTORNEYS DECLINE TO COMMENT UNTIL THEY HAVE SEEN A COPY OF THE ALIX REPORT THE PRIVATELY HELD PHARMOR ALSO BOUGHT FROM DOZENS OF VENDORS LINKED TO PHARMOR EXECUTIVES AND DIRECTORS FOR INSTANCE PHARMOR BOUGHT COSTUME JEWELRY FROM A YOUNGSTOWN CONCERN CALLED JEWELRY 90 WHICH HAD PURCHASED THE JEWELRY FROM A NEW YORK WHOLESALER MONUS BUSINESS ASSOCIATE DAVID KARZMER OWNED JEWELRY 90 AND NATHAN MONUS WAS A PAID CONSULTANT TO THE FIRM FOR TWO YEARS RECEIVING 354754 FOR JUST SIX MONTHS IN 1992 THE ALIX REPORT SAYS IF PHARMOR HAD BOUGHT DIRECTLY FROM THE WHOLESALER INSTEAD OF GOING THROUGH JEWELRY 90 IT WOULD HAVE SAVED 21 MILLION THE REPORT NOTES ADDING THAT OTHER DIRECTORS DIDN'T KNOW ABOUT MR MONUS'S CONSULTING ARRANGEMENT WITH JEWELRY 90 AND WITH SEVERAL OTHER FIRMS MR SHAPIRA SAYS HE AND THE COMPANY DIDN'T KNOW ABOUT THE JEWELRY 90 SITUATION UNTIL AFTER THE FRAUD WAS DISCLOSED IN ANOTHER CASE PHARMOR SOLD A STAKE IN A COMPANY PARTOWNED BY MICKEY MONUS STROUSS BUILDING ASSOCIATES TO A NEWLY FORMED FIRM CONTROLLED BY SOME PHARMOR DIRECTORS AND SHAREHOLDERS HAD PHARMOR RETAINED ITS INVESTMENT IN STROUSS IT WOULD HAVE EARNED A SUBSTANTIAL RETURN THE ALIX REPORT SAYS ON THE OTHER HAND CERTAIN PHARMOR SHAREHOLDERS AND KEY EXECUTIVES HAVE PERSONALLY REALIZED EXTRAORDINARY RETURNS ON THEIR INVESTMENT IN STROUSS BUILDING ASSOCIATES MR SHAPIRA SAYS IT IS COMMON FOR COMPANIES TO SET UP SUCH ARRANGEMENTS TO BENEFIT SHAREHOLDERS THE ALIX REPORT ALSO DESCRIBES HOW MR SHAPIRA AND FOUR OTHER DIRECTORS EXERCISED EXPIRED STOCK OPTIONS IN SEPTEMBER 1990 THROUGH THE USE OF PROMISSORY NOTES EXECUTED AFTER THE EXPIRATION DATE BUT DATED PRIOR TO SUCH DATE THE FOLLOWING JUNE CORPORATE PARTNERS INVESTED 200 MILLION IN PHARMOR PART OF IT EARMARKED FOR STOCK BUYBACKS FROM INSIDERS SEVERAL DIRECTORS INCLUDING MR SHAPIRA TENDERED SOME SHARES IN AUGUST MR SHAPIRA FOR INSTANCE RECEIVED 21 MILLION FOR STOCK HE CASHED IN AND NATHAN MONUS RECEIVED 488800 FOR STOCK HE TENDERED AT THE TIME THE ALIX REPORT SAYS MR SHAPIRA SAYS DIRECTORS HAD BEEN TOLD BY ADVISERS THAT THEY COULD EXERCISE THE OPTIONS AND THAT IT WAS PERFECTLY LEGAL IT TOOK AN OUTSIDE SHAREHOLDER MR DEBARTOLO TO RAISE THE QUESTIONS THAT UNCOVERED THE FRAUD ALLEGEDLY LED BY MICKEY MONUS EIGHTEEN MONTHS AGO A YOUNGSTOWN TRAVEL AGENT TOLD MR DEBARTOLO THAT A PHARMOR UNIT HAD MADE AN 80000 PAYMENT TO COVER A DELINQUENT WORLD BASKETBALL LEAGUE ACCOUNT ACCORDING TO THE ALIX REPORT MR DEBARTOLO PASSED THAT INFORMATION TO DANIEL SHAPIRA A BROTHER OF DAVID SHAPIRA AND OUTSIDE COUNSEL TO PHARMOR HE TOLD DAVID WHO BEGAN AN INTERNAL INVESTIGATION AND SOON FIRED MICKEY MONUS AND MR FINN MR MONUS WAS A FRIEND AS WELL AS BUSINESS PARTNER TO THE SHAPIRA BROTHERS DAN AND MICKEY HAD TRAVELED TWICE TO ATLANTIC CITY ONCE TO SEE MIKE TYSON FIGHT ANOTHER TIME TO SEE WRESTLEMANIA ANOTHER SHAPIRA BROTHER RALPH HAD HELPED MR MONUS HIRE WORLD BASKETBALL LEAGUE CHEERLEADERS ACCORDING TO THE ALIX REPORT ONCE MR MONUS WAS ACCUSED OF FRAUD HOWEVER HE BECAME PERSONA NON GRATA AND WAS FIRED THE MONUS FAMILY OWNS ABOUT 29 OF PHARMOR TODAY PHARMOR IS STRIVING TO BUILD A PROFITABLE BUSINESS FROM THE RUBBLE WITH CREDITORS WARRING OVER WHETHER IT IS HEALTHY ENOUGH TO EMERGE FROM BANKRUPTCY THE COMPANY WHICH HAS BEGUN TURNING AN OPERATING PROFIT INTENDS TO SUBMIT A BUSINESS PLAN TO CREDITORS IN JUNE AND SAYS IT COULD EMERGE FROM BANKRUPTCY AS A PUBLIC COMPANY AS EARLY AS SEPTEMBER PHARMOR HAS SLASHED OVERHEAD AND DISTRIBUTION COSTS AND CLOSED ITS WEAKEST STORES LEAVING IT WITH ABOUT HALF OF THE 300 OR SO IT ONCE HAD WE'VE IMPROVED OUR MARGINS BY THREE PERCENTAGE POINTS SAYS ANTONIO ALVAREZ A TURNAROUND EXPERT WHO WAS NAMED CHIEF EXECUTIVE AFTER THE FRAUD CAME TO LIGHT STORES LOOK PRETTY MUCH LIKE IN THE PREBANKRUPTCY DAYS WITH PYRAMIDS OF DEEPLY DISCOUNTED GOODS IN A HYBRID DRUGSTORE AND MASSMERCHANDISE SETTING THIS WORRIES SOME TRADE CREDITORS WHO WONDER IF IT IS WISE TO COUNT ON A STRATEGY THAT APPARENTLY NEVER REALLY WORKED THEY ALSO WORRY ABOUT THE CURRENT HARSH RETAILING ENVIRONMENT IN WHICH EVEN SOME STRONG RETAILERS LIKE RITEAID ARE SHUTTERING STORES MEANWHILE PHARMOR SHAREHOLDERS EXECUTIVES AND DIRECTORS MANY OF THEM RELATIVES OLD FRIENDS AND BUSINESS PARTNERS ARE AT WAR WITH ONE ANOTHER IN THE COURTS AND AT SOCIAL GATHERINGS IN PITTSBURGH AND YOUNGSTOWN THE SITUATION HAS CREATED RIFTS IN ONCE TIGHTKNIT FAMILIES CARDIOLOGIST RICHARD ROSENBLOOM FOR INSTANCE NAMED AN UNCLE PHARMOR DIRECTOR IRWIN PORTER IN A CLASSACTION SHAREHOLDER SUIT DR ROSENBLOOM WHOSE GRANDFATHER COFOUNDED THE GIANT EAGLE CHAIN THAT FORMED PHARMOR ALSO SAW THE VALUE OF HIS GIANT EAGLE SHARE SHRINK AS A RESULT OF PHARMOR'S COLLAPSE WHEN I FIRST REALIZED WHAT HAPPENED SAYS DR ROSENBLOOM I WENT THROUGH INCREDIBLE RAGE AT HAVING THE PEOPLE I LOVED INVOLVED IN THIS NOW I'M JUST LEFT WITH SADNESS MONUS WAS ALSO ON THE BOARD AT THAT TIME 9401200006 940120 WORLD MARKETS TOKYO STOCKS RALLY 28 ON OUTLOOK FOR REFORM LONDON OTHER EUROPEAN BOURSES LOG NEW HIGHS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO GROWING OPTIMISM ABOUT IMMINENT APPROVAL OF POLITICAL REFORM SPARKED A RALLY IN JAPANESE STOCKS WEDNESDAY PULLING THE COUNTRY'S GIANT INSTITUTIONAL INVESTORS INTO THE MARKET THE NIKKEI 225STOCK INDEX WEDNESDAY CLOSED ABOVE THE PSYCHOLOGICALLY IMPORTANT BARRIER OF 19000 FOR THE FIRST TIME SINCE NOV 2 RISING 52485 POINTS OR 28 TO 1903940 IN TRADING THURSDAY THE NIKKEI INDEX ROSE 1451 POINTS TO CLOSE THE MORNING SESISON AT 1905391 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES UP FROM 2855 MILLION SHARES A DAY EARLIER GAINERS OVER WHELMED DECLINERS 933136 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES JUMPED 2976 POINTS OR 2 TO 154115 POLITICAL PARALYSIS HAD DRAGGED STOCKS DOWN IN RECENT MONTHS AS POLITICIANS HAGGLED OVER REFORMS WHILE IGNORING MEASURES TO END JAPAN'S RECESSION BUT HOPES WERE RISING THAT ONE WAY OR ANOTHER PRIME MINISTER MORIHIRO HOSOKAWA WILL COMPLETE POLITICAL REFORM AND CONCENTRATE SOON ON PASSAGE OF MEASURES TO BOOST ECO NOMIC GROWTH IN JAPAN SUCH MEASURES INCLUDING A TAX CUT HAVE BEEN WIDELY ANTICIPATED FOR MONTHS THE BILLS MOVED ONE STEP CLOSER TO PASSAGE THURSDAY WITH APPROVAL BY THE REFORM COMMITTEE OF THE UPPER HOUSE THE NIKKEI THIS YEAR HAS RISEN 93 ON THE GROWING BELIEF THAT JAPAN'S PROLONGED ECONOMIC SLUMP CAN'T GET ANY WORSE AND THAT THE GOVERNMENT WILL LEAK SPECIFIC PUMPPRIMING MEASURES ANY DAY NOW BUT JAPAN'S LARGEST INVESTORS THE NATION'S GIANT BANKS AND INSURERS HAVE BEEN SLOW TO JOIN THE BANDWAGON I THINK WHAT WE SAW THURSDAY IS INSTITUTIONAL INVESTORS COMING IN TO BUY BECAUSE THEY WERE GETTING NERVOUS ABOUT FALLING BEHIND THE RALLY SAID YASUO UEKI HEAD OF STOCK TRADING AT NIKKO SECURITIES CO THURSDAY'S ACTIVITY INTENSIFIED AS THE NIKKEI APPROACHED 19000 WHICH TRADERS TERMED A LEVEL MANY INVESTORS HAVE BEEN AWAITING BEFORE BUYING CHRISTIAN HOWES SENIOR SALESMAN AT SMITH NEW COURT IN TOKYO SAID THIS SHOWS THAT THERE IS A LOT OF MONEY WAITING OUT THERE ALREADY THIS YEAR THE NIKKEI HAS RISEN MORE SHARPLY THAN IT DID DURING ALL OF LAST YEAR WHEN JAPAN'S EQUITY MARKET WAS DOGGED BY FALLING INDUSTRIAL OUTPUT WEAK CONSUMPTION AND GENERALLY DEFLATING ASSET VALUES REPEATED GOVERNMENT ATTEMPTS TO KICKSTART THE ECONOMY THROUGH SPENDING PACKAGES AND INTERESTRATE CUTS FAILED TO LIFT THE ECONOMY OUT OF ITS SLUMP BUT ANALYSTS SAID LAST YEAR'S OUTLOOK WAS TOO PESSIMISTIC MANY EXPECT MR HOSOKAWA TO ANNOUNCE SPECIFIC ECONOMYBOOSTING MEASURES BEFORE HE LEAVES FOR THE US FOR A FEB 11 SUMMIT WITH PRESIDENT CLINTON SOME ANALYSTS SAID EVEN LIMITED MEASURES MAY GIVE STOCK PRICES A BOOST GIVEN LAST YEAR'S PERVASIVE GLUMNESS LONDON EQUITIES SOARED TO RECORD HIGHS AS BRITISH ECONOMIC NEWS RAISED HOPES FURTHER THAT LOWER LENDING RATES ARE COMING SOON THE STOCKHOLM MADRID AND BRUSSELS BOURSES ALSO LOGGED RECORD HIGHS FRANKFURT STOCKS REBOUNDED ALMOST 1 FOR THE MARKET'S FIRST GAIN THIS WEEK HONG KONG SHARES RALLIED 31 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11421 UP 077 REFLECTING HIGHER MARKETS IN ALL REGIONS PIPELINES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14315 UP 365 OR 26 WITH TRANSCANADA PIPELINES OF CANADA POSTING A 44 GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT 19755 DOWN 607 OR 3 WITH INTEL OF THE US SLIDING 7 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SOARED 381 POINTS OR 11 TO A RECORD 34751 THE FT 30STOCK INDEX CLIMBED 308 POINTS OR 12 TO 26541 AND THE FTSE 250 INDEX OF SMALLER STOCKS JUMPED 1355 POINTS OR 34 TO 41488 A SECOND CONSECUTIVE RECORD VOLUME WAS 132 BILLION SHARES UP FROM 9649 MILLION SHARES A DAY EARLIER THE HEAVY TURNOVER STEMMED FROM INTERNATIONAL AND BRITISH BUYERS FLOCKING TO THE SMALLERCAPITALIZATION STOCKS GILTS OR BRITISH GOVERNMENT BONDS RALLIED SHARPLY AND THE INTERESTRATE FUTURES CONTRACT CONTINUED TO FACTOR IN LOWER LENDING RATES WHILE THE POUND SLIPPED IN FOREIGNEXCHANGE DEALINGS STOCK PRICES TOOK OFF WHEN GOVERNMENT FIGURES SHOWED INFLATION SLIGHTLY BELOW EXPECTATIONS AND DECEMBER RETAIL SALES MUCH LOWER THAN ANTICIPATED A SCENARIO THAT SUPPORTS A REDUCTION IN BRITAIN'S BASE LENDING RATE THOUGH A RATE CUT MIGHT NOT COME IMMEDIATELY ANALYSTS SAID STOCKS' RALLY WAS JUSTIFIED BECAUSE THE ECONOMY IS GROWING WELL AND WILL INCREASE CORPORATE EARNINGS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 2054 POINTS TO 213438 THE REBOUND WHICH IGNITED ONLY CAUTIOUS ENTHUSIASM STEMMED FROM AN EASING OF SELLING PRESSURE BY FOREIGN INVESTORS PARTICULARLY US TRADERS FOR NOW RATHER THAN A NEW DIRECTION FOR THE MARKET IN PARIS STOCKS ROSE HELPED PARTLY BY FRENCH INDUSTRIAL PRODUCTION STATISTICS THAT SUPPORTED THE NOTION AN ECONOMIC RECOVERY HAS BEGUN IN STOCKHOLM AFTER THE PREVIOUS DAY'S SETBACK STOCKS RESUMED THEIR RALLY BRINGING MARKET INDEXES TO NEW ALLTIME HIGHS ON RECORD VOLUME DESPITE PROFITTAKING IN THE FORESTRY SECTOR IN MADRID SHARES SCORED A SECOND RECORD HIGH IN A ROW AS EXPECTATIONS FOR A SPANISH INTERESTRATE REDUCTION WERE BOOSTED BY A STRONGER BOND MARKET AND CURRENCY IN BRUSSELS STOCKS SURGED 13 TO A RECORD FINISH WITH BROAD GAINS IN HONG KONG STOCKS' SHARP RISE WERE FUELED BY BULLISHNESS ABOUT STRONG EARNINGS IN THE TELECOMMUNICATIONS SECTOR WHICH ENCOURAGED OVERSEAS BUYING AND IN THE BANKING INDUSTRY INSTITUTIONS BOUGHT BLUE CHIPS ACROSS THE BOARD THE MARKET'S STRENGTH PROVIDED THE IMPETUS FOR THE MANILA BOURSE TO SOAR 52 WITH STRONG GAINS BY BANKS UTILITIES PROPERTY AND ENERGY COMPANIES IN SYDNEY SHARES STAGED A LATE RALLY TO CLOSE AT A NEW SIXYEAR HIGH SPURRED BY STRONG CORPORATE RETAIL SALES FIGURES IN SINGAPORE THOUGH THE MAIN INDEX ROSE 1 THE BROAD MARKET WAS WEAK AND PRICES WERE MIXED AS MANY INVESTORS SAT OUT AWAITING A FURTHER CORRECTION BUT IN KUALA LUMPUR STOCKS PLUMMETED 26 AMID JITTERINESS IN THE WAKE OF RECENT VOLATILITY IN SEOUL THE BENCHMARK INDEX SHOT UP 16 ITS SECOND STRAIGHT RISE ON ACTIVE BUYING BY INDIVIDUALS THOUGH DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES IN WELLINGTON STOCKS ROSE SOLIDLY TO A NEW FOURYEAR HIGH IN MODERATE TRADING AMID BULLISHNESS ABOUT THE MARKET'S SHORTTERM PROSPECTS BUT IN BANGKOK PRICES SLUMPED 11 IN A CONTINUING CONSOLIDATION IN MEXICO CITY STOCKS ADVANCED 18 TO A RECORD AS THE PREVIOUS DAY'S RALLY CONTINUED WHEN BELLWETHER INTEREST RATES FELL TO HISTORIC LOWS AND THE PEASANT INSURGENCY WAS BELIEVED TO BE WINDING DOWN 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 9401200005 940120 BUSINESS BRIEF HOST MARRIOTT CORP COMPANY SIGNS INITIAL PACT TO SELL 26 FAIRFIELD INNS HOST MARRIOTT CORP BETHESDA MD SAID IT SIGNED A NONBINDING LETTER OF INTENT TO SELL 26 FAIRFIELD INNS TO A VENTURE COMPRISING SAGE HOSPITALITY RESOURCES INC AND CARLYLE GROUP LP FOR PROCEEDS OF ABOUT 115 MILLION OF WHICH 27 MILLION WILL BE IN THE FORM OF A NOTE HOST MARRIOTT SAID THE SALE IS EXPECTED TO CLOSE IN JUNE AND IS SUBJECT TO CERTAIN CONDITIONS AND APPROVALS MARRIOTT INTERNATIONAL INC WILL CONTINUE TO OPERATE MORE THAN 50 FAIRFIELD INNS AND WILL REMAIN THE FAIRFIELD INN FRANCHISER LAST OCTOBER MARRIOTT CORP SPLIT ITSELF INTO MARRIOTT INTERNATIONAL A MANAGEMENT COMPANY AND HOST MARRIOTT A REALESTATE AND TRAVELCONCESSIONS CONCERN CLOSELY HELD SAGE HOSPITALITY IS BASED IN DENVER 9401200004 940120 CORESTATES AND SIGNET REPORT STRONG GAINS IN 4THQUARTER PROFIT A WALL STREET JOURNAL ROUNDUP TWO REGIONAL BANKS CORESTATES FINANCIAL CORP OF PHILADELPHIA AND SIGNET BANKING CORP OF RICHMOND VA REPORTED ROBUST GROWTH IN FOURTHQUARTER PROFITS REFLECTING IMPROVED CREDIT QUALITY AND INCREASED LENDING CORESTATES REPORTED A 23 JUMP IN FOURTHQUARTER NET INCOME TO 853 MILLION OR 73 CENTS A SHARE FROM 691 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER QUARTER FOR THE FULL YEAR CORESTATES SAID NET INCOME ROSE 74 TO 3149 MILLION OR 269 A SHARE AFTER A ONETIME ACCOUNTING CHARGE OF 13 MILLION FOR POSTEMPLOYMENT BENEFITS IN 1992 CORESTATES REPORTED NET INCOME OF 1814 MILLION OR 157 A SHARE AFTER AN 81 MILLION ACCOUNTING CHARGE FOR HEALTH BENEFITS FOR RETIREES CORESTATES CHAIRMAN TERRENCE A LARSEN ATTRIBUTED THE YEAR'S RECORD EARNINGS TO BROAD STRENGTH IN ALL OF THE BANK'S BASIC BUSINESSES SIGNET BANKING SAID FOURTHQUARTER NET INCOME JUMPED 57 TO 499 MILLION OR 87 CENTS A SHARE FROM 318 MILLION OR 57 CENTS A SHARE PROFIT FOR THE YEAR ROSE 60 TO 1744 MILLION OR 306 A SHARE FROM 1092 MILLION OR 196 A SHARE THE PER SHARE DATA REFLECTS A 2FOR1 STOCK SPLIT SIGNET SAID NONPERFORMING ASSETS FELL 36 FROM A YEAR AGO AS THE BANK REDUCED ITS EXPOSURE IN COMMERCIAL REAL ESTATE NET INTEREST INCOME ROSE 10 FOR THE QUARTER AND 22 FOR THE YEAR THE COMPANY SAID ASSETS WERE 118 BILLION AS OF DEC 31 THE BANK'S LOAN LOSS PROVISION DECLINED 28 FOR THE QUARTER AND 30 FOR THE YEAR FROM THE CORRESPONDING PERIODS OF 1992 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CORESTATES CLOSED AT 2675 DOWN 375 CENTS SIGNET SLIPPED 375 CENTS TO 3675 9401200003 940120 CREDIT RATINGS S&P LOWERS RATINGS ON BROWNINGFERRIS DEBT OF 11 BILLION NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON ABOUT 11 BILLION OF THE DEBT OF BROWNINGFERRIS INDUSTRIES INC AND REMOVED THE RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED IN OCTOBER THE RATINGS CONCERN CITED THE HOUSTONBASED WASTE DISPOSAL CONCERN'S AGGRESSIVE INVESTMENT STRATEGY WHICH IT SAID IS RESULTING IN INCREASED DEBT USAGE THIS COUPLED WITH LOWER PROFITABILITY DUE TO INDUSTRY CONDITIONS MAKE IT UNLIKELY THAT CASHFLOW PROTECTION MEASURES WILL RETURN TO HISTORICALLY STRONG LEVELS S&P ADDED S&P SAID THE COMPANY'S RISING CAPITAL EXPENDITURES PENDING ACQUISITION OF A 50 STAKE IN OTTO ENTSORGUNGSDIENSTLEISDTUNG GMBH A LEADING SOLIDWASTE FIRM IN GERMANY AND OPPORTUNITIES OVERSEAS WILL REQUIRE SUBSTANTIAL EXTERNAL FINANCING OVER THE NEXT SEVERAL YEARS ALL OF THESE FACTORS PUT PRESSURE ON THE CAPITAL STRUCTURE WHICH AT 53 DEBT TO TOTAL CAPITAL IS MODESTLY AGGRESSIVE S&P SAID BROWNINGFERRIS' SENIOR DEBT WAS LOWERED TO SINGLEA FROM SINGLEAPLUS AND SUBORDINATED DEBT TO SINGLEAMINUS FROM SINGLEA THE INDUSTRIALREVENUE BONDS OF AMERICAN REFFUEL CO A JOINT VENTURE WITH AIR PRODUCTS & CHEMICALS INC WERE LOWERED TO SINGLEA FROM SINGLEAPLUS S&P SAID THE RATINGS REFLECT THE COMPANY'S LEADING POSITION AS THE SECOND LARGEST US WASTESERVICES FIRM STRONG CASH FLOW FROM CORE SOLIDWASTE SERVICES AND EXPECTATIONS THAT MANAGEMENT WILL TAKE APPROPRIATE ACTIONS TO LIMIT DEBT USUAGE A SPOKESMAN FOR BROWINGFERRIS SAID THE COMPANY IS NATURALLY DISAPPOINTED BY S&P'S ACTION BUT THE MOVE WASN'T UNEXPECTED HE ADDED THAT THE RATINGS ARE IN LINE WITH OTHER RATINGS SERVICES 9401200002 940120 INTERNATIONAL BRIEF AJINOMOTO CO SANDOZ UNIT WILL MARKET COMPANY'S DIABETES DRUG AJINOMOTO CO A JAPANESE FOODS SEASONINGS AND PHARMACEUTICALS CONCERN REACHED A WORLDWIDE LICENSING AGREEMENT WITH A UNIT OF SANDOZ AG OF SWITZERLAND FOR WHAT AJINOMOTO SAYS IS ONE OF ITS MOST PROMISING DIABETES DRUGS AJINOMOTO WILL SUPPLY THE MEDICINE IN BULK TO ALLOW SANDOZ PHARMA TO MARKET THE DRUG GLOBALLY EXCEPT IN JAPAN THE UK CHINA SOUTH KOREA AND TAIWAN WHERE AJINOMOTO PLANS TO SELL THE PRODUCT AN AJINOMOTO SPOKESMAN WOULDN'T DISCLOSE THE VALUE OF ROYALTIES AJINOMOTO SAID THE DRUG CALLED A4166 IS EFFECTIVE IN QUICKLY PREVENTING DIABETICS FROM HAVING A HIGH BLOODSUGAR LEVEL AFTER A MEAL BY INCREASING INSULIN PRODUCTION THE COMPANY SAYS THE DRUG HAS FEWER SIDE EFFECTS AND IS SUPERIOR TO SULPHONYLUREAS CURRENTLY USED TO TREAT DIABETES 9401200001 940120 WHAT'S NEWS WORLDWIDE PRESIDENT CLINTON VISITED THE QUAKEHIT LOS ANGELES REGION CALIFORNIA DISASTER AUTHORITIES SAID DAMAGES FROM MONDAY'S EARTHQUAKE CONSERVATIVELY COULD RANGE FROM 15 BILLION TO 30 BILLION THE DEATH TOLL MEANWHILE ROSE TO 46 THE PRESIDENT CONDUCTED A TOWN MEETING IN BURBANK SOUTHEAST OF THE TEMBLOR'S EPICENTER IN THE SAN FERNANDO VALLEY HE ANNOUNCED 140 MILLION IN FEDERAL FUNDS AS THE FIRST INSTALLMENT OF RELIEF MONEY THOUSANDS OF COMMUTERS UNABLE TO USE QUAKECRIPPLED FREEWAYS SPENT HOURS NEGOTIATING CANYON ROADS AND CITY STREETS TO GET TO AND FROM WORK CLINTON'S APPROVAL RATING IS RISING ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL SIXTY PERCENT OF THOSE SURVEYED APPROVE OF THE JOB HE IS DOING UP FROM 56 LAST MONTH DESPITE NEGATIVE NEWS AMERICANS SEEM TO BE BASING THEIR IMPRESSION OF HIM ON ECONOMIC TRENDS AND A PERCEPTION OF FOREIGN POLICY COMPETENCE ATTORNEY GENERAL RENO IS EXPECTED TO APPOINT A FORMER US ATTORNEY IN NEW YORK AS THE INDEPENDENT COUNSEL TO INVESTIGATE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENTS IN WHITEWATER DEVELOPMENT THE APPOINTMENT OF ROBERT FISKE JR COULD COME AS EARLY AS TODAY ACCORDING TO A LAWENFORCEMENT OFFICIAL SUBZERO TEMPERATURES FORCED MANY GOVERNMENT OFFICES BUSINESSES AND SCHOOLS TO CLOSE IN THE MIDWEST AND NORTHEAST THE COLD CRIPPLED TRANSIT SYSTEMS AND CAUSED ELECTRICAL BLACKOUTS AND BROWNOUTS PARTS OF THE SOUTH WERE AFFECTED YELTSIN AND HIS PRIME MINISTER AGREED TO FORM A NEW RUSSIAN CABINET DOMINATED BY CONSERVATIVES WHO FAVOR A GOSLOW APPROACH TO REFORM THE LONGANTICIPATED SHAKEUP CAME AMID THE RUBLE'S RECORD SLIDE AND CONFLICTING REPORTS THAT PROREFORM FINANCE MINISTER FYODOROV IS ABOUT TO DEFECT FROM THE CABINET TWO US SENATORS ARE CRITICIZING THE CLINTON ADMINISTRATION'S MANAGEMENT OF THE MULTIBILLIONDOLLAR RUSSIAN AID PROGRAM SIGNALING THEIR DISCONTENT WITH CLINTON'S RUSSIA POLICY LEAHY AND MCCONNELL URGED THE ADMINISTRATION TO MAKE NO NEW COMMITMENTS OF FUNDS UNTIL IT DEFENDS THE PROGRAM DURING HEARINGS ISRAEL'S RABIN DECLARED THAT DESPITE US ASSURANCES TO THE CONTRARY HE WASN'T CONVINCED SYRIA HAS ACCEPTED THE IDEA OF FULL PEACE THAT THE ISRAELIS DEMAND IN EXCHANGE FOR TERRITORY MEANWHILE IN TABA EGYPT THE CHIEF ISRAELI NEGOTIATOR SAID DISAGREEMENTS OVER BORDER CROSSINGS CONTINUED TO BOG DOWN ISRAELIPLO PEACE TALKS SERBS AND CROATS SIGNED ACCORDS TO START NORMALIZING RELATIONS LEAVING BOSNIA'S MUSLIMS APPARENTLY OUTFLANKED BY THEIR FOES THE PACTS WERE WORKED OUT ON THE SIDELINES OF ANOTHER ROUND OF INCONCLUSIVE PEACE TALKS IN GENEVA IN BOSNIA GUNFIRE HIT A US CARGO PLANE DELIVERING AID TO SARAJEVO AND THE UN SUSPENDED RELIEF FLIGHTS A SINGLE GENE CONTROLS THE TENDENCY TOWARD LOW BONE DENSITY KNOWN AS OSTEOPOROSIS IN OLDER PEOPLE AUSTRALIAN RESEARCHERS SAID THE SCIENTISTS REPORTED THAT IN A STUDY OF 311 WOMEN OLDER THAN 60 61 WITH THE IDENTIFIED GENE HAD A LOW BONEDENSITY LEVEL THAT PUT THEM AT RISK OF HAVING A FRACTURE TREASURY SECRETARY BENTSEN MET WITH CHINA'S PREMIER LI IN BEIJING AND TOLD HIM PROGRESS ON HUMAN RIGHTS IS BASIC TO SINOAMERICAN TIES BENTSEN SAID THE US WANTS TO REVIVE A JOINT ECONOMIC PANEL SUSPENDED AFTER THE 1989 TIANANMEN SQUARE MASSACRE THE SUPREME COURT UPHELD THE CONGRESSIONALLY ESTABLISHED METHOD FOR SELECTING MILITARY JUDGES THE JUSTICES REJECTED THE CLAIM THAT BECAUSE MILITARY JUDGES AREN'T CHOSEN FOR LIFE OR FIXED TERMS THEY LACK THE INDEPENDENCE NEEDED FOR IMPARTIALITY TONYA HARDING'S EXHUSBAND TURNED HIMSELF IN AT THE FBI OFFICE IN PORTLAND ORE AFTER A JUDGE ORDERED HIS ARREST IN THE ALLEGED PLOT TO INJURE HARDING'S SKATING RIVAL NANCY KERRIGAN OFFICIALS RELEASED AN AFFIDAVIT WITH STATEMENTS FROM HARDING'S BODYGUARD LINKING HER TO THE ATTACK SHE HASN'T BEEN CHARGED AND HAS DENIED INVOLVEMENT MANDELA ACCUSED PRESIDENT DE KLERK OF ORCHESTRATING SOUTH AFRICA'S TOWNSHIP VIOLENCE TO SABOTAGE THE CHANCES OF THE AFRICAN NATIONAL CONGRESS BECOMING THE NATION'S FIRST BLACK GOVERNMENT 9401190182 940119 PEPPER ANDSALT NOW THAT I'M GONE I BIODEGRADE IS LEAVING ME COLD A DEEP BREATH MAY PREVENT A SHALLOW COMMENT 9401190181 940119 WHO'S NEWS ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC SPRINGDALE ARK SAL MIWA 37YEAROLD PRESIDENT OF OPTROMECHANICS CORP OF PEARL RIVER NY WAS NAMED TO THE BOARD OF THIS MAKER OF COMPOSITE BUILDING MATERIALS FROM RECYCLED PLASTIC AND WOOD FIBERS THE MOVE INCREASES THE BOARD TO SEVEN MEMBERS 9401190180 940119 LAZARD AND MERRILL DEFEND THEIR TIES AS TOTALLY OPEN BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON LAZARD FRERES & CO AND MERRILL LYNCH & CO DEFENDED THEIR MUNICIPALBOND BUSINESS RELATIONSHIP AS A TOTALLY OPEN ONE THAT PROVIDED FOR DISCLOSURE TO LAZARD'S FINANCIAL ADVISORY CLIENTS BUT ELLEN O'CONNOR THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA TOLD THE DISTRICT'S CITY COUNCIL THAT SHE DIDN'T KNOW THE DETAILS OF THE RELATIONSHIP I WISH I HAD SHE SAID THE DISTRICT LAST WEEK FIRED LAZARD AS ITS FINANCIAL ADVISER CITING A CONTINUING CLOUD OVER THE FIRM AS FEDERAL INVESTIGATORS LOOK INTO WHETHER LAZARD AND MERRILL VIOLATED ANY CONFLICTOFINTEREST DISCLOSURE OR OTHER RULES IN THEIR FINANCIAL DEALINGS WITH VARIOUS JURISDICTIONS THAT ISSUE MUNICIPAL BONDS LAZARD HAD A CONTRACT WITH MERRILL TO HELP DEVELOP THE MARKET FOR INTERESTRATE SWAPS WHICH ENABLE BOND ISSUERS TO CONVERT FIXED INTO FLOATINGRATE DEBT OR VICE VERSA THE CONTRACT PROVIDED FOR A FLAT FEE AS WELL AS FEESPLITTING ON CERTAIN SPECIFIC TRANSACTIONS ON WHICH THE TWO FIRMS WORKED JOINTLY A MERRILL SPOKESMAN SAID HIS FIRM PAID LAZARD 28 MILLION IN FLAT FEES UNDER THE CONTRACT BUT DIDN'T HAVE DETAILS ON MONEY FLOWS UNDER THE FEESPLITTING ARRANGEMENT MERRILL LYNCH EARNED SOME 36 MILLION IN FEES FOR DOING TWO SWAP TRANSACTIONS FOR THE DISTRICT IN 1991 AND 1992 THE DISTRICT IS ONE OF MANY BONDISSUING JURISDICTIONS THAT HAVE BEEN CONTACTED BY THE SECURITIES AND EXCHANGE COMMISSION AND THE US ATTORNEY IN BOSTON IN CONNECTION WITH THEIR INVESTIGATIONS MERRILL LYNCH SAID ITS AGREEMENT WITH LAZARD WAS PREPARED BY THE LAW FIRM OF ROGERS & WELLS IS ENTIRELY LEGAL WASN'T SECRET AND WAS DISCLOSED TO THE DISTRICT LAZARD FRERES SAID THAT THE CONTRACT HAD NO APPLICABILITY WHATSOEVER TO TRANSACTIONS WITH ANY OF ITS FINANCIAL ADVISORY CLIENTS AND THAT IT RECEIVED NO FEES FROM MERRILL IN CONNECTION WITH ANY WASHINGTON TRANSACTIONS MOREOVER LAZARD SAID THAT IT SPECIFICALLY INSTRUCTED MARK FERBER ITS FORMER PARTNER WHO HANDLED THE DISTRICT'S ACCOUNT TO MAKE PRESCRIBED DISCLOSURES TO THE DISTRICT AND THAT MR FERBER ACKNOWLEDGED IN WRITING HE WOULD DO SO MR FERBER COULDN'T BE REACHED FOR COMMENT MS O'CONNOR THE DISTRICT'S DEPUTY MAYOR FOR FINANCE TOLD THE CITY COUNCIL THAT MR FERBER TOLD HER LAZARD HAD AN AGREEMENT WITH MERRILL BUT SHE SAID SHE DIDN'T KNOW THE CONTENTS OF THAT AGREEMENT SHE SAID IT DIDN'T OCCUR TO HER THAT THE AGREEMENT INVOLVED FINANCIAL REMUNERATION HE DIDN'T TELL ME THEY HAD A FEESHARING AGREEMENT SHE SAID IF SHE HAD KNOWN MS O'CONNOR SAID MY INSTINCT IS I WOULD HAVE STEERED CLEAR OF IT 9401190178 940119 MARKETING & MEDIA P&G TO DISCONTINUE CLARION COSMETICS DUE TO WEAK SALES BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PROCTER & GAMBLE CO GAVE UP ON ITS UNPROFITABLE CLARION COSMETICS BRAND AND ANNOUNCED PLANS TO ELIMINATE IT THE MOVE MARKS THE DEMISE OF A MASSMARKETED BRAND THAT HAS BEEN FLOUNDERING FOR MOST OF ITS SEVENYEAR EXISTENCE BECAUSE OF ITS OWNERS' DIFFICULTIES FINDING A CONSUMER BASE CLARION WAS ORIGINALLY AIMED AT AN OLDER CONSUMER WITH SENSITIVE SKIN BUT IT NEVER REACHED THAT MARKET AND HAS GONE THROUGH HALF A DOZEN POSITIONINGS SAID ROBERT HIATT CHIEF EXECUTIVE OFFICER OF RIVAL MAYBELLINE INC CLARION HAS ANNUAL US SALES OF ABOUT 70 MILLION OR LESS THAN 10 OF P&G'S DOMESTIC COSMETICS SALES CLARION IS THE LATEST P&G BRAND TO BE PULLED FROM STORES AND THE MOVE IS PART OF A TREND IN THE FOOD AND CONSUMER GOODS INDUSTRIES TO SLASH COSTS BY CUTTING POORLY PERFORMING PRODUCTS P&G GAINED CLARION AS PART OF ITS 1989 ACQUISITION OF NOXELL CORP WHICH ALSO INCLUDED THE COVER GIRL COSMETICS BRAND NOXELL INTRODUCED CLARION IN LATE 1986 AS A PRODUCT FOR MATURE WOMEN WITH SENSITIVE SKIN IT HAD WIDE DISTRIBUTION BUT SALES WERE DISAPPOINTING AND SUBSEQUENT ATTEMPTS TO REPOSITION IT DIDN'T BOOST SALES SUFFICIENTLY ACCORDING TO ANALYSTS BY THE TIME P&G BOUGHT CLARION IT WAS ALREADY A SOMEWHAT TROUBLED PRODUCT LINE SAID BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS INC CLARION STRUGGLED FOR A FEW YEARS AS P&G FOCUSED ON COVER GIRL WHICH IS GEARED TOWARD YOUNGER WOMEN AND ON MAX FACTOR INTERNATIONAL WHICH IT ACQUIRED FROM REVLON IN 1991 EARLIER THIS YEAR P&G LAUNCHED A NEW ADVERTISING CAMPAIGN FOR CLARION POSITIONING IT AS A PRODUCT FOR OLDER WOMEN WITH CHANGING SKIN NEEDS IN THAT NICHE IT COMPETED WITH MAYBELLINE'S YEAROLD REVITALIZING LINE WHICH ALSO TARGETS WOMEN IN THEIR 30S AND UP WITH SPECIAL SKIN NEEDS IN SEPTEMBER MAYBELLINE TOLD RETAILERS IT WOULD ADD TO THE REVITALIZING LINEUP AND ASKED FOR ADDITIONAL SHELF SPACE WHICH MAY HAVE CUT INTO CLARION'S AVAILABILITY ACCORDING TO A P&G SPOKESWOMAN THE NEW CLARION CAMPAIGN STABILIZED THE BRAND BUT IT STILL WOULD HAVE TAKEN US A SIGNIFICANT AMOUNT OF TIME TO GROW THE BRAND TO A LEVEL WE FOUND SATISFACTORY 9401190177 940119 TEXAS JOURNAL WHO ELSE COULD GET AWAY WITH AN ANKLE BRACELET BY JEFF D OPDYKE SHOULD DALLAS COWBOYS FANS THANK AMERICAN MEDICAL ELECTRONICS INC THE RICHARDSON MAKER OF MEDICAL DEVICES HAS BEEN PROMOTING ITS ROLE IN COWBOY DEFENSIVE TACKLE LEON LETT'S RECOVERY FROM A BROKEN ANKLE THAT DIDN'T LOOK LIKE ANYTHING TO BRAG ABOUT WHEN MR LETT'S BLUNDER ON A BLOCKED FIELD GOAL COST HIS TEAM THE MIAMI GAME BEFORE A NATIONAL TV AUDIENCE ON THANKSGIVING BUT ON SUNDAY HE WAS NAMED A PLAYER OF THE GAME IN DALLAS'S PLAYOFF WIN OVER GREEN BAY AME'S ROLE GOES BACK TO SEPTEMBER WHEN MR LETT REINJURED AN ANKLE HE HAD BROKEN BEFORE THE TEAM'S MEDICAL STAFF HAD HIM TRY AN AME ANKLE BRACELET WHICH EMITS A WEAK ELECTROMAGNETIC FIELD TO STIMULATE BONE GROWTH AFTER WEARING IT 14 TO 16 HOURS A DAY FOR EIGHT WEEKS HE RETURNED TO ACTION WE WEREN'T SURE HE'D BE UP AND RUNNING LET ALONE PLAYING BY THE EIGHTH WEEK SAYS TEAM TRAINER KEVIN O'NEAL NOW IF AME CAN DEVELOP SOMETHING TO HELP STIMULATE RECALL OF NFL RULES ON WHEN NOT TO TOUCH A LIVE FOOTBALL 9401190176 940119 TEXAS JOURNAL ECONOMIC FOCUS TEXAS' APPAREL INDUSTRY IS DEAD RIGHT WRONG BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL THE MYTH THE TEXAS GARMENT INDUSTRY IS JUST ABOUT DEAD WITHIN A FEW YEARS CHEAP IMPORTS FROM MEXICO WILL DELIVER THE KNOCKOUT PUNCH TO AN INDUSTRY THAT'S ALREADY REELING FROM LOWWAGE FOREIGN COMPETITION THE REALITY DON'T START THE EULOGY JUST YET NOT ONLY IS THE TEXAS APPAREL SECTOR ACTUALLY BUCKING THE NATIONAL TREND BY ADDING NEW JOBS THESE DAYS IT'S GROWING FASTER THAN ANY OTHER MANUFACTURING CATEGORY IN THE STATE WHAT'S MORE SOME ECONOMISTS ARGUE THAT THE NORTH AMERICAN FREE TRADE AGREEMENT MAY WIND UP HELPING THE TEXAS INDUSTRY AS MUCH AS IT HURTS LOWERING TARIFF BARRIERS COULD PROVE A WINDFALL FOR MANUFACTURERS SEEKING NEW MARKETS SOUTH OF THE BORDER AND A RECENT STUDY BY THE UNIVERSITY OF TEXAS' LBJ SCHOOL OF PUBLIC AFFAIRS CONTENDS THAT HIGHER WORKER PRODUCTIVITY IN TEXAS ALONG WITH SUPERIOR TRANSPORTATION AND COMMUNICATIONS WILL HELP KEEP THE INDUSTRY VITAL HERE THERE ARE HIGHEND NICHES IN THE APPAREL MARKET THAT ARE VERY FAVORABLE TO TEXAS PRODUCERS SAYS CHANDLER STOLP AN ASSOCIATE PROFESSOR AT THE LBJ SCHOOL WHO WORKED ON THE STUDY OF COURSE NAFTA WILL HURT SOME PEOPLE SMALLER SEWING SHOPS ALONG THE BORDER THAT COMPETE LARGELY ON PRICE HAVE ALREADY LOST GROUND TO MAQUILADORA OPERATIONS IN NORTHERN MEXICO AND NAFTA MAY WELL ACCELERATE THE EXODUS OF LOWERSKILL JOBS AS TARIFFS ARE PHASED OUT OVER THE NEXT SIX YEARS BUT THERE ARE ALSO A HOST OF GARMENT MANUFACTURERS THAT PLAN TO STAY PUT AND EVEN EXPAND HERE IN EL PASO APPAREL JOBS HAVE JUMPED 28 SINCE 1990 TO 4600 FUELED LARGELY BY THE EXPLOSIVE GROWTH OF BIG JEAN MANUFACTURERS FOR INSTANCE WRANGLER A UNIT OF VF CORP READING PA HAS BOUGHT A NEW PLANT AND BUILT NEW WAREHOUSE AND FINISHING FACILITIES ROUGHLY TRIPLING EMPLOYMENT TO 2100 SINCE 1987 ALTHOUGH LABOR COSTS ARE HIGHER IN TEXAS THAN MEXICO THE COMPANY SAYS IT HAS LITTLE CHOICE FOR OUR PARTICULAR PRODUCT LINE THE DEMAND IS ABSOLUTELY MADE IN THE USA' SAYS JOE MAXEY DIVISION MANAGER HE ADDS THAT THE COMPANY'S RESEARCH INDICATES MEXICAN CONSUMERS FEEL THE SAME WAY WRANGLER IS CURRENTLY LOOKING INTO WAYS TO INCREASE ITS PENETRATION OF THAT MARKET LEVI STRAUSS & CO MEANWHILE IS WORKING TO MAKE ITSELF MORE COMPETITIVE BY CONVERTING TO A TEAM MANUFACTURING PROCESS BY CREATING FLEXIBLE GROUPS OF EMPLOYEES TRAINED IN A NUMBER OF DIFFERENT ASSEMBLY STEPS AND BY GIVING THEM MORE RESPONSIBILITY LEVI HOPES TO INCREASE QUALITY SHRINK LEAD TIMES AND IMPROVE INVENTORY MANAGEMENT AND THE IMPACT OF NAFTA NOT MUCH PREDICTS HECTOR VENEGAS A LABORMARKET ANALYST FOR THE TEXAS EMPLOYMENT COMMISSION IN EL PASO NAFTA DIDN'T SUDDENLY GIVE SOMEBODY THE OPPORTUNITY TO MOVE SOUTH OF THE BORDER WE HAD THAT OPPORTUNITY BEFORE HE SAYS WE'RE VERY MUCH ALIVE THRIVING EVEN THE SAME CAN'T BE SAID OF THE DALLAS AREA WHERE APPARELMANUFACTURING EMPLOYMENT HAS FALLEN SHARPLY OVER THE PAST DECADE STILL ACCORDING TO THE LBJ SCHOOL STUDY THE PRESENCE OF THE INTERNATIONAL APPAREL MART THE LARGEST CLOTHINGWHOLESALE FACILITY IN THE COUNTRY GIVES DALLAS SOME COMPETITIVE ADVANTAGES THE MART AMONG OTHER THINGS KEEPS LOCAL MANUFACTURERS MUCH CLOSER TO CUTTINGEDGE FASHION TRENDS AS A RESULT DALLASAREA FACTORIES TEND TO FOCUS ON HIGHERQUALITY MARKET NICHES THAT PLACE A PREMIUM ON FLEXIBILITY AND TIMELINESS A SHORTCOMING OF FOREIGN MANUFACTURERS WHICH REQUIRE LONGER LEAD TIMES MEXICO'S INABILITY TO RESPOND QUICKLY AND TO MEET PRODUCTION SCHEDULES SEVERELY LIMITS ITS COMPETITIVENESS IN AN INDUSTRY WHERE FLEXIBILITY AND RESPONSIVENESS TO CHANGING DEMANDS ARE CRITICAL THE LBJ SCHOOL STUDY SAYS NOTING THAT MEXICO'S APPAREL INDUSTRY IS ATOMIZED WITH SOME 17000 FACTORIES EACH WITH AN AVERAGE OF EIGHT TO 10 WORKERS THAT'S ONE REASON DESIGNER LEONARD STEINBERG DECIDED AGAINST LOCATING IN MEXICO WHEN HE SPLIT OFF FROM VICTOR COSTA TO START HIS OWN LINE OF UPSCALE LADIES DRESSES AND SUITS IN OUR BUSINESS WHEN YOU NEED A BUTTON YOU NEED IT NOW WHEN A STORE NEEDS A DRESS IT NEEDS IT YESTERDAY HE SAYS THE METROPLEX WITH ITS EASY AIRLINE CONNECTIONS ALL OVER THE US AS WELL AS ITS PROXIMITY TO BUYERS SUITED HIS NEEDS MUCH BETTER WHAT'S MORE MR STEINBERG HAS DISCOVERED THAT TEXAS HAS ITS OWN COST ADVANTAGES OVER SOME OTHER GARMENT CENTERS HE SAYS HIS CLOTHING WHICH RETAILS FOR BETWEEN 350 AND 575 WOULD HAVE TO BE PRICED ABOUT 50 HIGHER IF IT WAS MANUFACTURED IN NEW YORK JERELL INC ANOTHER DALLAS CLOTHING COMPANY ALSO PLANS TO CONTINUE CONTRACTING WITH LOCAL SEWING HOUSES TO MANUFACTURE ITS MELISSA LINE OF WOMEN'S DRESS AND ALI MILES SPORTSWEAR OUR ADVANTAGE IS WE CAN RESPOND QUICKLY TO WHAT'S HAPPENING HE SAYS MEANWHILE JERELL IS LICKING ITS CHOPS ABOUT THE OPPORTUNITIES OFFERED BY NAFTA IT RECENTLY CONVERTED ITS LABELS TO ENGLISH FRENCH AND SPANISH TO FACILITATE SALES IN CANADA AND MEXICO BIG GOVERNMENT IN CASE YOU DIDN'T ALREADY KNOW IT THE COMPTROLLER'S OFFICE REPORTS THAT STATE GOVERNMENT ACCOUNTS FOR A BIG CHUNK OF THE TEXAS ECONOMY 73 TO BE EXACT IN SOME MARKETS STATE SPENDING IS BY FAR THE BIGGEST GAME IN TOWN FOR INSTANCE THE STATE ACCOUNTS FOR 357 OF ALL MEDICALSERVICES EXPENDITURES AND 97 OF ALL BUILDING CONSTRUCTION IN MORE THAN HALF OF ALL TEXAS COUNTIES THE PUBLICSCHOOL SYSTEM IS THE BIGGEST SINGLE EMPLOYER 9401190175 940119 TEXAS JOURNAL HEARD IN TEXAS AFTER CLEAR CHANNEL'S RUNUP INVESTORS MIGHT CONSIDER TUNING OUT FOR A WHILE BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL CLEAR CHANNEL COMMUNICATIONS INVESTORS CERTAINLY TUNED INTO THE RIGHT STOCK LAST YEAR IN THE 12 MONTHS ENDED SEPT 30 NET INCOME FOR THE SAN ANTONIO OPERATOR OF RADIO AND TELEVISION STATIONS INCREASED MORE THAN 66 TO NEARLY 6 MILLION REVENUE WAS UP 41 TO 1197 MILLION AND THE STOCK ACCOUNTING FOR A 5FOR4 SPLIT LAST FEBRUARY MORE THAN DOUBLED AND WAS ONE OF THE TOP PERFORMERS ON THE AMERICAN STOCK EXCHANGE NOW HOWEVER MIGHT BE THE TIME TO CHANGE THE CHANNEL OR AT LEAST TAKE A COMMERCIAL BREAK WILLIAM D LYONS EDITOR OF THE ATLANTABASED SHORT ON VALUE NEWSLETTER RECENTLY ADDED CLEAR CHANNEL TO HIS LIST OF OVERPRICED STOCKS NOTING ITS LOFTY EARNINGS MULTIPLE HE CONSIDERS THE STOCK A POTENTIAL CANDIDATE FOR A SHORT SALE WITH A TARGET PRICE NEAR 30 THE STOCK CURRENTLY TRADES IN THE MID40S IN A SHORT SALE INVESTORS SELL SHARES OF BORROWED STOCK HOPING TO REPLACE THEM LATER AT A LOWER PRICE POCKETING THE DIFFERENCE CS FIRST BOSTON ANALYST HARRY J DEMOTT SAYS IT'S HARD TO JUMP ON THE CLEAR CHANNEL BANDWAGON AT CURRENT PRICES ALTHOUGH HE NOTES THAT THE RIDE CERTAINLY ISN'T OVER YET CLEAR CHANNEL WILL PROBABLY HAVE AN UPSIDE SURPRISE IN EARNINGS FOR THE FOURTH QUARTER CLEAR CHANNEL CURRENTLY TRADES AT MORE THAN 84 TIMES THE 53 CENTS A SHARE IT EARNED IN THE 12 MONTHS THROUGH SEPT 30 AND NEARLY 50 TIMES THE MOST ENTHUSIASTIC ESTIMATE FOR 1994 BUT EVEN THE MOST BULLISH ANALYST ONLY EXPECTS THE COMPANY'S EARNINGS TO GROW 37 A YEAR MEANING CLEAR CHANNEL IS TRADING AT MORE THAN DOUBLE ITS EXPECTED EARNINGS GROWTH RATE TYPICALLY INVESTMENT GURUS DON'T LIKE TO SEE A COMPANY'S EARNINGS MULTIPLE RADICALLY EXCEED ITS EXPECTED GROWTH RATE OPTIMISM AMONG SOME ANALYSTS HOWEVER IS BASED ON PERSHARE CASH FLOW A KEY MEASURE OF PERFORMANCE FOR BROADCAST COMPANIES CLEAR CHANNEL CURRENTLY TRADES BETWEEN 18 AND 20 TIMES 1994'S EXPECTED CASH FLOW PRETTY MUCH MATCHING MOST ANALYSTS' ESTIMATES OF ANNUAL CASHFLOW GROWTH BETWEEN 15 AND 20 BUT SOME ANALYSTS ARGUE THAT BECAUSE CLEAR CHANNEL'S CASH FLOW COULD GROW AS MUCH AS 30 ANNUALLY THE COMPANY IS TRADING AT A DISCOUNT THOSE ESTIMATES ASSUME A CONTINUATION OF THE COMPANY'S AGGRESSIVE EXPANSION STRATEGY BUT THAT ASSUMPTION SEEMS FLAWED AND FOR A SIMPLE REASON THE FEDERAL COMMUNICATIONS COMMISSION YES EXPANSION WILL CONTINUE FOR SOME TIME AS CLEAR CHANNEL TAKES ADVANTAGE OF THE FCC'S LIBERAL RULES REGARDING RADIOSTATION OWNERSHIP BUT IT IS CERTAIN TO SLOW AT SOME POINT THE FCC CURRENTLY ALLOWS OWNERSHIP OF 18 AM AND 18 FM STATIONS WITH NO MORE THAN TWO OF EACH IN ANY ONE MARKET THE MAXIMUM WILL INCREASE TO 20 OF EACH IN SEPTEMBER AT PRESENT CLEAR CHANNEL IS RAPIDLY APPROACHING THE FCC'S CURRENT LIMIT THE COMPANY OWNS 32 STATIONS WITH THE PURCHASE OF EIGHT MORE PENDING BECAUSE THOSE PENDING PURCHASES WOULD CAUSE CLEAR CHANNEL TO EXCEED THE FCC LIMIT THE COMPANY IS CURRENTLY SEEKING FCC APPROVAL TO DIVEST ITSELF OF 11 STATIONS TRANSFERRING OWNERSHIP TO SNOWDEN BROADCASTING NEW ORLEANS HOWEVER BECAUSE CLEAR CHANNEL OWNS AN 80 NONVOTING EQUITY INTEREST IN SNOWDEN THE FCC HAS YET TO RULE ON WHETHER THE TRANSFER TRULY TERMINATES CLEAR CHANNEL'S OWNERSHIP IF THE FCC SIGNS OFF ON THE TRANSFER CLEAR CHANNEL WILL BE FREE TO SNAP UP MORE STATIONS IF THE FCC RULES AGAINST THE COMPANY CLEAR CHANNEL WILL BE REQUIRED TO SHED FOUR STATIONS AND THEN WILL BE ABLE TO PICK UP FOUR MORE AFTER SEPTEMBER BUT WHATEVER THE FCC RULES THE COMPANY IS BUMPING UP AGAINST LEGAL LIMITS AND ONCE IT CAN'T GROW BY ACQUISITION MUCH BEYOND ITS CURRENT RATE SHAREHOLDERS ARE GOING TO FOCUS ON ITS EARNINGS MULTIPLE AND THEY WON'T BE PLEASED TO BE SURE CLEAR CHANNEL MANAGEMENT HAS PROVED ITSELF DEFT AT PUMPING PROFITS OUT OF RADIO STATIONS PROFIT MARGINS AT SOME STATIONS ARE HIGHER THAN 40 MOREOVER THE COMPANY SURPRISED ANALYSTS WITH PERSHARE EARNINGS OF 17 CENTS IN THE THIRD QUARTER TRIPLE THE YEARAGO PERSHARE EARNINGS ANALYSTS EXPECT FROM 13 CENTS TO 27 CENTS FOR THE 1993 FOURTH QUARTER RADIO ADVERTISING HAS REBOUNDED STRONGLY PARTICULARLY IN CLEAR CHANNEL'S MOSTLY SOUTHERN MARKETS AND THE COMPANY'S TV PROPERTIES SHOULD CONTINUE TO PROSPER NOW THAT FOX WITH WHICH CLEAR CHANNEL LINKED SEVEN OF ITS EIGHT TELEVISION STATIONS HAS GAINED THE RIGHTS TO THE NATIONAL FOOTBALL LEAGUE'S NFC CONFERENCE GAMES THE STOCK DIDN'T RUN UP IN 1993 BECAUSE THE MARKET DECIDED TO BE KIND TO COMPANIES THAT BEGIN WITH THE LETTER C SAYS PAINEWEBBER ANALYST ALAN J GOTTESMAN INVESTORS BEGAN TO APPRECIATE THAT THIS COMPANY WASN'T JUST LUCKY WITH ITS ACQUISITIONS BUT THAT IT KNEW WHAT IT WAS DOING STILL CLEAR CHANNEL'S STOCK APPEARS TO HAVE MOVED AHEAD OF ITSELF FOR THE TIME BEING LAST JUNE WHEN THE STOCK TRADED IN THE MID20S CS FIRST BOSTON ANTICIPATED A FAIRLY VALUED STOCK PRICE OF 3150 WITHIN 12 MONTHS BASED ON PROJECTIONS FOR CLEAR CHANNEL'S 1994 CASH FLOW REVISED CASHFLOW ESTIMATES PUT CLEAR CHANNEL'S STOCK IN THE LOW 40S A LEHMAN BROTHERS REPORT WRITTEN IN OCTOBER PROJECTED A 43 PRICE WITHIN THE YEAR MR GOTTESMAN CONCEDES THE GAP BETWEEN PRICE AND VALUE CERTAINLY HAS NARROWED IN THE PAST YEAR DR HORTON LED TEXAS STOCKS FOR THE WEEK GAINING 3375 A SHARE OR MORE THAN 21 THE ARLINGTONBASED HOME BUILDER REPORTED EARLY LAST WEEK THAT NET SALES CONTRACTS FOR THE FISCAL FIRST QUARTER ENDED DEC 31 TOTALED 812 MILLION AN 83 INCREASE FROM A YEAR AGO HORTON WHICH HAS SEEN A SURGE IN DEMAND FOR NEW HOMES ALSO NOTED THAT ITS BACKLOG OF HOMES UNDER CONTRACT AT DEC 31 INCREASED 87 TO 1245 MILLION FROM THE YEARAGO PERIOD VTEL SHARES SHED NEARLY 22 TO CLOSE AT 625 AFTER A PIPER JAFFRAY ANALYST DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY ANALYST ROGER REDMOND TOOK THE ACTION ON VTEL THE AUSTIN MAKER OF INTERACTIVE VIDEOCONFERENCING SYSTEMS NOTING THAT LATER THIS MONTH COMPUTER CONCERN INTEL WILL UNVEIL A DESKTOP VIDEOCONFERENCING PRODUCT INCOMPATIBLE WITH CURRENT STANDARDS MR REDMOND PROJECTS A TEMPORARY SLOWDOWN IN VIDEOCONFERENCINGPRODUCT SALES AS COMPANIES WAIT TO SEE WHAT EMERGES AS THE STANDARD HE CUT VTEL'S 1994 EARNINGS ESTIMATE 75 TO FIVE CENTS A SHARE FROM 20 CENTS CYBERONICS DROPPED 175 OR 14 AFTER THE FOOD AND DRUG ADMINISTRATION NOTIFIED THE WEBSTER MEDICALDEVICE COMPANY THAT THERE ARE SIGNIFICANT DEFICIENCIES IN THE COMPANY'S PREMARKETAPPROVAL APPLICATION FOR ITS NEUROCYBERNETIC PROSTHESIS SYSTEM AN IMPLANTABLE DEVICE USED TO TREAT EPILEPSY THE FDA REQUESTED ADDITIONAL CLINICAL AND TECHNICAL INFORMATION 9401190174 940119 TEXAS JOURNAL UNFORTUNATELY THEY STILL ONLY FLY WHEN THEY HIT A BUMP BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL THE OLD DOG OF THE US BUS BUSINESS IS LEARNING SOME NEW TRICKS FROM ITS MEXICAN PEERS IN ANTICIPATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT DALLASBASED GREYHOUND LINES INC SIGNED A RECIPROCAL TICKETING AGREEMENT IN 1992 WITH ESTRELLA BLANCA A MEXICO CITY BUS COMPANY WHILE THE LINK HAS RAISED GREYHOUND RIDERSHIP IN LAREDO EL PASO AND MCALLEN THE GAINS HAVEN'T BEEN BIG ENOUGH TO MERIT ADDING DRIVERS OR SERVICE BUT GREYHOUND THINKS ITS TIE WITH THE MEXICAN INDUSTRY MAY PAY OFF IN ANOTHER WAY IT IS TAKING A CLOSE LOOK AT INTRODUCING IN THE US THE PREMIUM SERVICE OFFERED BY SOME MEXICAN CARRIERS IN ESSENCE A GROUNDBASED VARIANT ON FIRSTCLASS AIR TRAVEL PREMIUM SERVICE INCLUDES SUCH AMENITIES AS WIDER SEATS AND AISLES ONBOARD MOVIES AND BEVERAGE SERVICE MOST GREYHOUND CUSTOMERS IN THE US TEND TO BE LOW TO MIDDLEINCOME PEOPLE WHO PROBABLY WOULDN'T PAY EXTRA FOR THE WHITEGLOVE TREATMENT BUT GREYHOUND EXECUTIVES SAY PREMIUM SERVICE MIGHT GIVE THE BUS LINE AN EDGE AMONG WHITECOLLAR COMMUTERS IN SOME MARKETS SUCH AS THE BOSTONWASHINGTON CORRIDOR IT'S A DIRECTION WE'RE HEADING IN A GREYHOUND SPOKESMAN SAYS 9401190172 940119 TEXAS JOURNAL THEY'RE QUIET AND THEY DON'T SEND OUT RESUMES BY SCOTT MCCARTNEY AMARILLO FROM A DISTANCE IT LOOKS LIKE JUMBO JETS AT THE LOCAL AIRPORT HERE ARE LINED UP THICKER THAN LAGUARDIA AT RUSH HOUR AND WHILE THE PLANES AT THAT BUSY NEW YORK AIRPORT SOMETIMES SEEM TO GO NOWHERE FAST THEY'VE GOT NOTHING ON THE DC10S AND 727S HERE THAT'S BECAUSE AMARILLO INTERNATIONAL AIRPORT HAS BECOME ONE OF THE BUSIEST AIRPLANE PARKING LOTS IN THE COUNTRY AS CARRIERS GROUND AGING AND UNDERUSED JETS THEY HAVE PARKED MANY AT THE THREEYEAROLD STORAGE FACILITY OPERATED BY DYNAIR TECH A UNIT OF THE AIRCRAFTMAINTENANCE COMPANY DYNCORP IN RESTON VA DYNAIR IS CARING FOR 50 AIRCRAFT HERE FROM AMERICAN DELTA AND OTHER AIRLINES AND IT EXPECTS 20 MORE IN THE NEXT SIX MONTHS THAT MAKES AIRCRAFT STORAGE ONE OF THE FEW EXPANDING SEGMENTS OF AVIATION AND EXPLAINS WHY DYNAIR HAS INCREASED ITS WORK FORCE HERE TO 150 FROM THREE IN JUST THREE YEARS OF OPERATION IT'S AN ACTIVE AREA RIGHT NOW BUT I WOULDN'T CALL IT A GROWING BUSINESS SAYS PAUL HANNAK DYNAIR'S SENIOR VICE PRESIDENT FOR BUSINESS DEVELOPMENT IT'S NOT SOMETHING ANY OF US LIKE TO SEE WE'D LIKE TO SEE THE AIRCRAFT OPERATING AMARILLO IS AN IDEAL SPOT FOR SIDELINED AIRLINERS MR HANNAK SAYS ITS DRY MODERATE CLIMATE IS GENTLE ON PLANES MOREOVER THE AMARILLO AIRPORT USED TO BE AN AIR FORCE BASE SO IT HAS A RUNWAY LONG ENOUGH TO ACCOMMODATE JUMBO JETS AND PLENTY OF ROOM FOR EXPANDED STORAGE 9401190171 940119 TEXAS JOURNAL PLEASE DON'T SUE BUT WE CALL THIS A GALLERIA STORY BY BRIDGET O' BRIAN IT SEEMS LOGICAL ENOUGH THE AREA AROUND THE GALLERIA IS THE GALLERIA AREA SO SAYS THE GALLERIA ITSELF THE 300STORE SHOPPING CENTER IN HOUSTON THAT HAS BEEN TAKING OUT ADVERTISEMENTS IN LOCAL NEWSPAPERS EXHORTING THE PUBLIC AND THE MEDIA NOT TO CALL THE ENVIRONS OF THE FAMED MALL THE GALLERIA AREA BUT UPTOWN HOUSTON INSTEAD WHY THE OBJECTION WE'RE PROTECTING THE FACT THAT IT'S OUR NAME SAYS LOIS WILLIAMS ASSISTANT MARKETING DIRECTOR FOR THE GALLERIA WHICH IS OWNED BY HINES INTERESTS LTD HOUSTON WE'RE A SPECIAL PLACE THE GALLERIA HAS LONG BEEN AGGRESSIVE ABOUT PROTECTING ITS NAME WHICH IS REGISTERED WITH THE STATE AS A SERVICE MARK AND THUS SHOULD ONLY BE USED TO DENOTE THE HOUSTON SHOPPING CENTER AND ITS SISTER DEVELOPMENT IN DALLAS ALSO OWNED BY HINES INTERESTS A LOT OF PEOPLE TRY TO RIDE ON OUR COATTAILS MS WILLIAMS COMPLAINS IN DALLAS GALLERIA'S NAME HASN'T CREPT BEYOND THE MALL IN PART BECAUSE THE MALL IS ONLY 11 YEARS OLD HOUSTON'S IS 25 AND IN PART BECAUSE ITS NORTH DALLAS LOCATION WAS WELL KNOWN BEFORE THE SHOPPING CENTER WAS BUILT WE HAVEN'T HAD INSTANCES OF REFERENCES FROM AREA BUSINESSES SAYS JANE ROBERTSON DIRECTOR OF MARKETING BUT IN HOUSTON THE GALLERIA NAME POPS UP ON CAR DEALERSHIPS ELECTROLYSIS OFFICES AND GAS STATIONS IN THE MALL'S VICINITY TO CITE JUST A FEW INSTANCES THERE'S EVEN A GALLERIA AREA CHAMBER OF COMMERCE WHICH MS WILLIAMS NOTES WE DO NOT RECOGNIZE BUT GETTING PEOPLE TO SWITCH TO UPTOWN HOUSTON WILL BE TOUGH JOHN BREEDING PRESIDENT OF THE UPTOWN HOUSTON CIVIC GROUP WHICH THE GALLERIA DOES RECOGNIZE SAYS THAT PEOPLE ARE EVERY BIT AS FAMILIAR WITH UPTOWN HOUSTON AS THEY WERE WITH THE FORMER NAME FOR THE AREA PERHAPS BUT FOR THOSE WHO HAVE SOMEHOW FORGOTTEN THE OLD NAME IT WAS MAGIC CIRCLE THAT MONIKER FADED IN THE 1970S BECAUSE SO FEW PEOPLE USED IT 9401190170 940119 SOUTHERN CALIFORNIA EARTHQUAKE QUAKE PUSHED MANY BUILDINGS' DESIGN LIMITS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE SWAYING OF DOWNTOWN OFFICE TOWERS AND OTHER STRUCTURES DURING MONDAY'S EARTHQUAKE CAME CLOSE TO THE DESIGN LIMITS IMPOSED ON NEW CONSTRUCTION IN 1988 EXPERTS SAY THE EXTENT OF THE GROUND MOVEMENT MORE VIOLENT THAN SOME OF THE SHAKING THAT TOOK PLACE DURING THE DEADLY 1989 SAN FRANCISCO QUAKE SURPRISED SOME OF THESE QUAKE EXPERTS THE STRICTER CONSTRUCTION STANDARDS IMPOSED BY THE STATE OF CALIFORNIA IN THE WAKE OF A QUAKE THAT RAVAGED MEXICO CITY IN 1985 WERE INTENDED TO PROTECT BUILDINGS AGAINST AN EARTHQUAKE EVEN MORE POWERFUL THAN THE ONE THAT STRUCK THE LOS ANGELES AREA MONDAY THE TOUGHER BUILDING STANDARDS ENACTED DURING THE PAST FIVE YEARS ALLOWED HIGHRISE BUILDINGS AND NEWER COMMERCIAL STRUCTURES TO ESCAPE LARGELY UNSCATHED IN THE LATEST LOS ANGELES QUAKE WHICH MEASURED 66 ON THE RICHTER SCALE BUT THE MASSIVE TEMBLOR DISCLOSED STRIKING SHORTCOMINGS IN CALIFORNIA'S EFFORT TO REINFORCE OLDER BUILDINGS AND FREEWAYS THE GROUND MOTION THAT MANY BUILDINGS SAW WAS CLOSE TO THE MAXIMUM THEY WERE DESIGNED TO WITHSTAND SAID RON HAMBURGER A VICE PRESIDENT OF EQE INTERNATIONAL CORP SAN FRANCISCO A LEADING ENGINEERINGCONSULTING FIRM SPECIALIZING IN EARTHQUAKEDAMAGE PREVENTION AND ASSESSMENT THE MOTION WAS CAPTURED BY DEVICES THAT CALIBRATE ACTUAL ACCELERATION RATES OF THE GROUND AS THE TREMORS PASS THROUGH FOR THOUSANDS OF OLDER BUILDINGS THAT SUSTAINED SIGNIFICANT DAMAGE AND SECTIONS OF THE REGION'S HIGHWAY SYSTEM WHICH BUCKLED OR COLLAPSED DESPITE TWO DECADES OF PLANNING TO SHORE THEM UP FOR SUCH SEISMIC ACTIVITY CURRENT RETROFIT EFFORTS CLEARLY PROVED INADEQUATE YESTERDAY AS THE FULL SCOPE OF THE ROADWAY DAMAGE BECAME APPARENT EARTHQUAKE EXPERTS AND EVEN SOME STATE TRANSPORTATION OFFICIALS PREDICTED THAT THE ENTIRE 1 BILLION STATEWIDE HIGHWAY RETROFIT PROGRAM IS LIKELY TO BE REVAMPED GOV PETE WILSON QUICKLY TRIED TO SCOTCH THE IDEA OF INCREASING TAXES TO SPEED UP THE WORK BUT QUESTIONS ABOUT WHY THE PROGRAM IS TAKING SO LONG AND WHAT CRITERIA STATE OFFICIALS RELIED ON TO DETERMINE THE OVERPASSES TO BE UPDATED FIRSTARE LIKELY TO BECOME MAJOR POLITICAL ISSUES IN COMING MONTHS THOMAS HANKS A SEISMOLOGIST WITH THE US GEOLOGICAL SERVICE IN MENLO PARK CALIF SAID THE ROADWAY DAMAGE THIS TIME APPEARED TO EXCEED DAMAGE CAUSED BY THE 1971 SYLMAR QUAKE WHILE NOTING THAT MONDAY'S QUAKE WAS CENTERED CLOSER TO HEAVILYPOPULATED AREAS OF THE SAN FERNANDO VALLEY MR HANKS NEVERTHELESS CHALLENGED THE EFFECTIVENESS OF THE STATE'S HIGHWAYIMPROVEMENT EFFORTS WE'VE HAD 23 YEARS TO GATHER KNOWLEDGE POUR MORE CEMENT AND INSTALL MORE REINFORCING STEEL HE SAID YET MORE BRIDGES CAME DOWN BEGINNING IN 1971 THE STATE SPENT HUNDREDS OF MILLIONS OF DOLLARS INSTALLING DEVICES INTENDED TO PREVENT ROADWAYS FROM BEING KNOCKED OFF THEIR SUPPORTING PILLARS DURING PERIODS OF SEISMIC STRESS THEN AFTER THE 1989 QUAKE THAT HIT SAN FRANCISCO THE STATE INITIATED A SECOND ROUND OF CONSTRUCTION TO REINFORCE PILLARS AND FOUNDATIONS HOLDING UP HIGHWAYS SO FAR ONLY 300 OF THE 900 BRIDGES AND OVERPASSES TARGETED FOR SUCH REINFORCEMENT HAVE BEEN MODERNIZED WORK ON TWO OF THE MOST SERIOUSLY DAMAGED OVERPASSES WAS SCHEDULED TO START IN THE NEXT FEW WEEKS STATE HIGHWAY OFFICIALS SAID THAT THE WORST ROADWAY DAMAGE OCCURRED AT OVERPASSES WHERE THE COLUMNS AND FOUNDATIONS HADN'T YET BEEN REINFORCED WITH EXTRA STEEL OR CONCRETE AT A NEWS CONFERENCE IN SACRAMENTO JAMES ROBERTS CHIEF ENGINEER FOR THE CALIFORNIA DEPARTMENT OF TRANSPORTATION SAID THAT UNEXPECTED VERTICAL JOLTING OF THE HIGHWAYS COUPLED WITH TYPICAL HORIZONTAL SHAKING DURING EARTHQUAKES CAUSED SOME OF THE ROADBEDS TO COLLAPSE ATTRIBUTING RETROFIT DELAYS TO ENVIRONMENTAL AND TECHNICAL PROBLEMS HE ACKNOWLEDGED THAT NOW THE STATE WILL HAVE TO COME UP WITH A REVISED PRIORITY LIST OF VULNERABLE ROADWAYS BASED ON THE LOCATION OF THE LATEST QUAKE AND OTHER FACTORS BRIDGES ALONG THE SIMI VALLEY FREEWAY THAT COLLAPSED FOR INSTANCE WEREN'T NEAR THE TOP OF THE STATE'S LIST BECAUSE THEY WERE RELATIVELY NEW AND CONSIDERED SUFFICIENTLY SOLID TO WITHSTAND A SEVERE QUAKE STATE LAWMAKERS YEARS AGO ADOPTED A SPECIAL EXCISE TAX TO FUND THE HIGHWAY IMPROVEMENTS BUT ANOTHER SENIOR CONSULTANT AT EQE INTERNATIONAL WHICH HAS CONTRACTS FOR SOME OF THE DESIGN WORK BLAMED MUCH OF THE DELAY ON THE STATE'S BUREAUCRACY THE PRIMARY LIMITATION IS THAT THE STATE DEPARTMENT OF TRANSPORTATION CAN HANDLE ONLY A LIMITED NUMBER OF CONTRACTS AT A TIME EARL AURELIUS SAID IT BECOMES A MANAGEMENT PROBLEM THE APARTMENT BUILDINGS RETAIL STORES AND EVEN HEALTH FACILITIES THAT TOOK SEVERE DAMAGE APPARENTLY WERE BUILT UNDER OLDER VERSIONS OF THE BUILDING CODES ACCORDING TO EARTHQUAKE EXPERTS AND RESCUE OFFICIALS ONLY A TINY PORTION OF SUCH OLDER BUILDINGS IN THE REGION THESE PEOPLE ESTIMATED HAVE UNDERGONE OFTEN EXPENSIVE RENOVATIONS NECESSARY TO SHORE UP MASONRY OR CONCRETE WALLS TO MEET TODAY'S STANDARDS THE NORTHRIDGE APARTMENT BUILDING THAT COLLAPSED AND KILLED 16 RESIDENTS FOR EXAMPLE REPORTEDLY HAD A SOCALLED SOFT OR UNREINFORCED FIRST FLOOR THAT WOULD HAVE TO BE STRENGTHENED BY STEEL SUPPORTS IF IT WERE BEING BUILT TODAY BILL IWAN AN EARTHQUAKE EXPERT AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY SAID THIS WEEK'S EARTHQUAKE RAISES QUESTIONS ABOUT WHETHER ENOUGH HAS BEEN DONE TO IMPROVE CONSTRUCTION STANDARDS TO PREVENT FATALITIES DID WE LEARN ENOUGH FROM THE PREVIOUS QUAKES AND DID WE PUT IT INTO PRACTICE HE ASKED REPORTERS MONDAY ANOTHER RESULT OF THE QUAKE COULD BE TO PROMPT MANY OWNERS OF PLANTS SHOPPING CENTERS AND OTHER COMMERCIAL BUILDINGS TO INVEST IN RETROFITS THAT'S BECAUSE EARTHQUAKEINSURANCE RATES ARE EXPECTED TO CONTINUE THEIR UPWARD SPIRAL AND SOME BUSINESSES MAY FIND IT MORE ECONOMICAL TO MAKE LONGTERM INVESTMENTS IN UPGRADING FACILITIES 9401190169 940119 INTERNATIONAL JAPAN AIRLINES PLANS TO CUT 5000 JOBS TRIM CAPITAL OUTLAYS SPECIAL TO THE WALL STREET JOURNAL TOKYO FACING STIFF FOREIGN COMPETITION JAPAN AIRLINES SAID IT WILL CUT 5000 JOBS NEARLY ONEQUARTER OF ITS WORK FORCE AND SHARPLY TRIM CAPITAL INVESTMENT OVER THE NEXT FOUR YEARS JAL SAID ITS CUTBACKS SHOULD SAVE 100 BILLION YEN 9013 MILLION IN THE NEXT FISCAL YEAR WHICH BEGINS APRIL 1 JAL FORMERLY JAPAN'S FLAG CARRIER SAID IT EXPECTS TO REPORT A PRETAX LOSS OF 2704 MILLION FOR THE YEAR ENDING MARCH 31 THE AIRLINE HAS BEEN STRUGGLING IN RECENT YEARS DUE TO THE WORLDWIDE ECONOMIC SLOWDOWN THE RISING YEN AND HIGH OPERATING COSTS IT HAD A LOSS OF 485 MILLION IN THE PREVIOUS FISCAL YEAR JAL AIMS TO BREAK EVEN IN THE COMING TWO FISCAL YEARS AND ATTAIN STABLE PROFITABILITY FROM THE YEAR THAT BEGINS APRIL 1 1996 THE JOB CUTS REPRESENTING ABOUT 23 OF JAL'S WORK FORCE OF 22000 PEOPLE WILL BE IMPLEMENTED THROUGH ATTRITION CURBS ON NEW HIRING AND TRANSFERS TO RELATED COMPANIES JAL SAID THE AIRLINE ALSO SAID IT WILL TRIM CAPITAL INVESTMENT FOR 19941997 BY ABOUT 48 TO 396 BILLION FROM A PLANNED 757 BILLION SOME 747400S AND OTHER AIRCRAFT WILL BE INTRODUCED LATER THAN INITIALLY PLANNED AND THE CARRIER SAID IT IS CONSIDERING INTRODUCING SMALLER PLANES 9401190168 940119 HONEYWELL'S NET ROSE IN 4TH PERIOD BUT SALES DROPPED BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS HONEYWELL INC'S FOURTHQUARTER EARNINGS TOPPED THOSE OF THE YEARAGO PERIOD WHICH WAS CRIMPED BY A BIG CHARGE BUT SALES DROPPED 5 IN THE LATEST QUARTER AND THE BUILDINGCONTROLS COMPANY WARNED THAT 1994 WOULD SEE A DECLINE OF ABOUT 10 IN PERSHARE EARNINGS PRIMARILY BECAUSE OF WEAKNESS IN ITS SPACE AND AVIATION LINES NET WAS 1126 MILLION OR 85 CENTS A SHARE VS NET OF 29 MILLION OR 21 CENTS A SHARE A YEAR EARLIER THE YEARAGO QUARTER INCLUDED 851 MILLION IN RESTRUCTURING CHARGES PARTIALLY OFFSET BY A 74 MILLION GAIN EXCLUDING UNUSUAL ITEMS OPERATING PROFIT WAS 2042 MILLION OFF SLIGHTLY FROM 2082 MILLION A YEAR EARLIER SALES IN THE LATEST QUARTER DIPPED TO 162 BILLION FROM 171 BILLION HONEYWELL SAID IT HAD ACHIEVED ITS 1993 EARNINGS OBJECTIVE DESPITE A SLUGGISH US RECOVERY RECESSIONARY CONDITIONS IN EUROPE AND THE CONTINUED CYCLICAL DOWNTURN IN THE COMMERCIAL AVIATION INDUSTRY PRODUCTIVITY IMPROVEMENTS AND COSTCUTTING PROGRAMS HELPED FIRM PROFIT MARGINS THE COMPANY SAID OPERATING PROFIT AT THE SPACE AND AVIATION CONTROL UNIT DECLINED 39 TO 259 MILLION AND ORDERS DROPPED BY ABOUT 20 IN THE LATEST PERIOD THE COMPANY SAID THE COMPANY SAID IT EXPECTS A SOLID PERFORMANCE FROM ITS HOME AND BUILDINGCONTROL AND INDUSTRIAL BUSINESSES IN 1994 BUT IT CAUTIONED THAT THE ANTICIPATED IMPROVEMENTS AT THOSE OPERATIONS WILL NOT BE ENOUGH TO OFFSET CONTINUED WEAKNESS IN ITS SPACE AND AVIATION LINES AND THE PROJECTED ADVERSE EFFECT OF FOREIGNCURRENCY FLUCTUATIONS THE COMPANY ALSO SAID THAT IT ANTICIPATES A STRONG REBOUND IN PERSHARE EARNINGS BEGINNING IN 1995 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HONEYWELL SHARES SLIPPED 875 CENTS TO 3275 FOR THE YEAR HONEYWELL REPORTED NET OF 3222 MILLION OR 240 A SHARE IN 1992 IT HAD NET OF 2468 MILLION OR 178 A SHARE BUT THE RESULTS WERE HURT BY CHARGES OF 1445 MILLION FOR AN ACCOUNTING CHANGE AND 851 MILLION FOR RESTRUCTURING THE CHARGES WERE PARTIALLY OFFSET BY A 1714 MILLION GAIN FROM LITIGATION SETTLEMENTS SALES IN 1993 SLIPPED 42 TO 596 BILLION FROM 622 BILLION 9401190166 940119 BUSINESS BRIEF GRUMMAN TO CLOSE FIVE PLANTS CUT STAFF IN REGROUPING PLAN BETHPAGE NY DEFENSE CONTRACTOR GRUMMAN CORP ANNOUNCED ITS RESTRUCTURING PLAN TO REDUCE OPERATING COST BY NEARLY 600 MILLION OVER THE NEXT THREE YEARS AS EXPECTED THE COMPANY SAID IT WILL CLOSE FIVE MAJOR LONG ISLAND NY FACILITIES TRIMMING TOTAL MANUFACTURING AND OFFICE SPACE BY ONE THIRD THE CURRENT WORK FORCE OF 17900 PEOPLE ALREADY DOWN FROM A 1987 PEAK OF ABOUT 33000 WILL BE REDUCED BY ABOUT 500 THIS YEAR GRUMMAN SAID IT WILL TAKE A PRETAX CHARGE OF 85 MILLION AGAINST 1993 EARNINGS TO COVER THE RESTRUCTURING COST EXCLUDING THE CHARGE GRUMMAN SAID 1993 EARNINGS WILL BE AT LEAST IN LINE WITH 1992'S 349 A SHARE FROM CONTINUING OPERATIONS AMONG SPECIFIC LOCATIONS AFFECTED AIRCRAFT OPERATIONS IN THE 15 MILLIONSQUAREFOOT FACILITY AT CALVERTON NY WILL BE MOVED TO GRUMMAN'S PLANT IN ST AUGUSTINE FLA ENGINEERING AND TECHNICAL OPERATIONS IN CALVERTON WOODBURY MELVILLE AND HOLTSVILLE NY WILL BE MOVED TO THE COMPANY'S HEADQUARTERS IN BETHPAGE NY AND A DETAIL PARTS FACILITY A MANUFACTURING ENGINERING LAB AND OFFICE BUILDING ALL IN BETHPAGE WILL BE CLOSED MOST BETHPAGE EMPLOYEES WILL BE OFFERED TRANSFERS THE COMPANY SAID 9401190165 940119 INTERNATIONAL BOSNIA OLYMPIC AIDE TACKLES CHALLENGE GATHERING HELPING FARFLUNG ATHLETES BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT FROM HIS NARROW BORROWED OFFICE PREDRAG MEDJESKI IS DOING WHAT HE CAN FOR BOSNIAN NATIONAL PRIDE THE EXECUTIVE DIRECTOR OF THE OLYMPIC COMMITTEE OF BOSNIA AND HERZEGOVINA MR MEDJESKI IS TRYING TO PERSUADE A BOBSLED BUREAUCRAT TO GIVE HIS COUNTRY'S BOB TEAM A STARTING SPOT AT THE WINTER OLYMPICS EVEN THOUGH THE SQUAD WON'T HAVE APPEARED IN THE THREE INTERNATIONAL MEETS REQUIRED THEY HAVE A GOOD EXCUSE HALF THE TEAM IS STUCK IN SARAJEVO AND THE ENTIRE SQUAD HASN'T COMPETED TOGETHER FOR TWO YEARS THE BOBSLEDDERS MR MEDJESKI SAYS ARE DOING DRY TRAINING IN THE WARTORN CITY THOUGH HE CONFESSES HE HAS NO IDEA WHAT THAT ENTAILS MR MEDJESKI A SIXFOOT SEVENINCH FORMER PROFESSIONAL BASKETBALL PLAYER WITH DEEPLY RINGED EYES IS THE ONLY MEMBER OF THE BOSNIAN OLYMPIC COMMITTEE LIVING ABROAD AND THEREFORE THE ONLY ONE ABLE TO DO MUCH FOR HIS COUNTRY'S ATHLETES IN A JOB THAT REQUIRES HIM BY TURNS TO BE NURSEMAID LOBBYIST QUARTERMASTER AND FUNDRAISER HAGGLING WITH SPORTS OFFICIALS IS A NECESSARY PART OF WHAT HE DESCRIBES AS SAVING OUR SECONDBEST ATHLETES FOR THE FUTURE OF OUR SPORT BOSNIA'S FINEST HE SAYS HAVE LONG SINCE BEEN LOST FOR SPORT EITHER THEY'RE IN ARMIES OR THEY HAVE BEEN WOUNDED OR KILLED BOSNIA'S OLYMPIC HOPEFULS ARE ATHLETES WHO WERE TOO YOUNG TO FIGHT MOST WERE 18 OR YOUNGER WHEN THEY SLIPPED OUT OF SARAJEVO LAST YEAR IN ALL THERE ARE 88 OF THEM STREWN AROUND THE WORLD AND MUCH OF MR MEDJESKI'S TIME IS DEVOTED TO ARRANGING THEIR CARE AND TRAINING THERE IS A BASKETBALL TEAM IN SYCAMORE ILL CROSSCOUNTRY SKIERS IN NORWAY BOXERS AND HANDBALL PLAYERS IN TURKEY AND LUGERS IN THE GERMAN ALPS MOST HOST COUNTRIES COVER BASIC EXPENSES BUT MR MEDJESKI WHO HAS BEEN IN HIS JOB FOR A LITTLE MORE THAN A YEAR NONETHELESS MUST SCROUNGE UP EVERYTHING FROM VISAS TO SPORT SHOES FOR HIS CHARGES WHO ARE AS MUCH REFUGEES AS THEY ARE HOPEFUL OLYMPIANS BECAUSE THEY FLED WITHOUT BAGGAGE MR MEDJESKI OFTEN HAS TO FIND THE ATHLETES STREET CLOTHES AS WELL AS TRAINING SUITS IT'S A LOT OF EFFORT FOR WHAT MUST SEEM TO MANY A QUIXOTIC IRRELEVANCE THE SPORTING FORTUNES OF A STATE BATTLING FOR ITS LIFE BUT FOR THE 40YEAROLD MR MEDJESKI SURVIVAL IS EXACTLY WHAT HIS WORK IS ABOUT NOT ONLY SAVING THE LIVES OF ATHLETES BUT ALSO OF A SET OF IDEALS IT GALLS HIM WHEN OTHERS CAN'T GRASP THIS AND HE IS PARTICULARLY PIQUED THAT AN OLYMPICRELATED CHARITY IN LILLEHAMMER NORWAY RAISING MONEY FOR SARAJEVO REFUSES TO GIVE A SMALL PERCENTAGE OF ITS FUNDS TO HIS ORGANIZATION LILLEHAMMER IS THE SITE OF THE OLYMPIC GAMES IN SPORT WE HAVE KEPT THE UNIVERSALITY OF BOSNIAHERZEGOVINA ALIVE MY ORGANIZATION'S PRESIDENT IS A CROAT THE SECRETARYGENERAL IS A MUSLIM AND I'M A SERB AND WE DON'T MAKE ANY DISTINCTION AMONG THE BOYS AND GIRLS ON THE TEAM SAYS MR MEDJESKI THIS IS OUR BASE FOR THE FUTURE HAVING THE ATHLETES OF ALL ETHNIC GROUPS TOGETHER I HOPE SPORTS AFTER THE WAR WILL HELP TO REBUILD BROKEN BRIDGES BETWEEN PEOPLE INDEED THE INTERNATIONALISM OF THE OLYMPICS AND THE MULTICULTURALISM OF SARAJEVO ARE CONNECTED I ALWAYS LOVED OLYMPISM HE RECALLS IT'S WHAT BROUGHT ME TO SARAJEVO BEFORE THE 1984 WINTER GAMES FOR WHICH THE BELGRADE NATIVE WAS AN ORGANIZER HE STAYED ON TO WORK IN THE TOURIST BUSINESS AND MADE SARAJEVO HIS HOME CONVINCING POTENTIAL DONORS THAT HIS WORK IS ABOUT THE FUTURE OF BOSNIAN ETHNIC TOLERANCE IS NONE TOO EASY SO FAR THE JAPANESE OLYMPIC COMMITTEE HAS MADE THE ONLY SIZABLE CASH GIFT 320000 THE GERMAN OLYMPIC COMMITTEE HAS PROVIDED MR MEDJESKI WITH HIS OFFICE HIS PERSONAL EXPENSES ARE BEING COVERED BY THE GERMANS BUT HE HAS NO IDEA HOW THEY WILL BE REPAID HE IS MOST DISTURBED BY THE UNITED NATIONS' REFUSAL TO ALLOW ANY ATHLETES TO LEAVE SARAJEVO ON THE RETURN FLIGHTS OF RELIEF MISSIONS A THICK LOG OF FAXES AND LETTERS TO UN OFFICIALS AND VARIOUS FOREIGN MINISTRIES ATTESTS TO TIRELESS LOBBYING ALL HE HEARS IN RESPONSE HE SAYS IS THAT SPORT IS NOT A PART OF ANY UN RESOLUTIONS CONCERNING WAR IN BOSNIA STILL MR MEDJESKI THINKS LASTMINUTE PRESSURE BY OLYMPIC OFFICIALS MAY YET DO THE TRICK AND GET THE BOBSLEDDERS OUT BEFORE THE START OF THE GAMES NEXT MONTH IF THEY DO HE WILL BE DELIGHTED AND SAYS WE'LL HAVE MORE ATHLETES IN THE OLYMPIC VILLAGE WE BELONG THERE WE HAVE A PLACE THERE 9401190163 940119 AFTER THE QUAKE OLDER PEOPLE TURNED TO COMPUTERS FOR COMFORT EARTHQUAKERELATED DISPATCHES FROM SENIORNET A COMPUTER NETWORK FOR OLDER ADULTS SEEKING INFORMATION AND OFFERING COMFORT IN THE HOURS JUST AFTER THE DISASTER FROM FRANO AS MANY OF YOU KNOW OUR TWO CHILDREN LIVE IN SOUTHERN CALIFORNA WE ARE BOTH GRATEFUL THAT THEY ARE WELL AND WHO CARES ABOUT THE TV'S CHINA AND CRYSTAL ANYWAY A FUNNY THING DID HAPPEN THOUGH SUSIE'S FRIEND IN ENGLAND CALLED HER EARLY THIS MORNING WHEN SHE HEARD ABOUT THE DISASTER AND WAS ABLE TO GET THROUGH SUSIE KNOWING SHE COULD NOT REACH US ASKED HER FRIEND IN ENGLAND TO CALL US SO WE ARE REASSURED VIA LONDON ENGLAND STRANGE BUT WONDERFUL FROM FLIP 2603 GINNY DES THE CAT AND I ARE IN FINE SHAPE JUST MINUS A LOT OF STEMWARE AND CRYSTAL OH BOY WE'RE JUST HAVING A LONG LONG AFTERSHOCK MUST BE IN THE NEIGHBORHOOD OF 5 I'LL RUN OUT IN THE GARDEN IF YOU DON'T MIND FROM FLIP 2603 THIS LAST AFTERSHOCK SOUNDED LIKE A LOCOMOTIVE COMING UP THE STREET I CHICKENED OUT AND RAN OUT INTO THE GARDEN BUT TONIGHT I'LL BE ABLE TO SLEEP THRU THEM I'M SURE FROM GERRIW SOMEONE WHO OBVIOUSLY HAD CALLED THE WRONG NUMBER LEFT A MESSAGE ON MY MACHINE AT 745 AM PST SAYING SHE WAS KIM'S MOTHER AND SHE IS ALRIGHT IF ANYONE KNOWS KIM'S MOTHER PLEASE SEE THAT KIM GETS THE MESSAGE FROM CONNIEACT PLEASE TAKE IT EASY FOR THE NEXT DAY OR TWO WE LEARNED IN THE LOMA PRIETA THAT THE SHOCK CAUSES A DEPRESSION AFTER A DAY OR TWO WHEN THE SHOCK WEARS OFF I WAS WEEPY FOR A DAY OR TWO SO BE GOOD TO YOURSELVES FROM ALICEB8703 WE'VE JUST ABOUT ACCOUNTED FOR ALL OF THE SENIORNET MEMBERS THINK THERE ARE 4/5 WE'VE HAD NO CONTACT WITH KEYWIZ HAD DAMAGE AND LOST AQUARIUM POLLY'S HOUSE DAMAGED & 'PUTERS TV'S DAMAGED LARRY HAS BADLY CUT FOOT THAT REQUIRED 20 STITCHES THEY DO NOT HAVE WATER OR POWER KEEP THINKIN' ABOUT US FROM ALICEB8703 IT'S ABOUT 4 AM TUESDAY AND CAN'T SLEEP STILL HAVE NOT HEARD DIRECTLY FROM KIM ROGER & BABY JOSHUA PHONES ARE A NIGHTMARE HERE KEEP POSTING WE NEED TO KNOW YOU'RE OUT THERE FROM BUDROB BILL YOU AND LINDA ARE INVITED TO BRING GUIDO AND COME CAMP OUT HERE FOR AS LONG AS YOU NEED THIS IS A SERIOUS INVITATION WHAT DOES GUIDO EAT FROM GORDONM678 PRAYERS AND THOUGHTS WITH ALL THE FOLKS IN CALIFORNIA AND THE 49R'S TOO 9401190162 940119 BENTSEN UNVEILS EFFORT TO OPEN CAPITAL MARKETS PROGRAM TARGETS 12 NATIONS TO ACCEPT US FIRMS FOR FINANCIAL SERVICES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK TREASURY SECRETARY LLOYD BENTSEN LAUNCHED A CAMPAIGN TO OPEN FINANCIAL MARKETS IN EMERGING ECONOMIES TO US BROKERS AND BANKS HE ALSO GAVE THE SECOND STRONG HINT IN TWO DAYS THAT THE US MAY BE ON THE VERGE OF LIFTING ITS TRADE EMBARGO AGAINST VIETNAM A STRATEGY OF ENGAGEMENT WITH VIETNAM MAY BE THE MOST EFFECTIVE WAY TO PROMOTE OUR GOAL OF ACCOUNTING FOR MISSING SOLDIERS FROM THE WAR HE SAID IN A SPEECH TUESDAY TO THE THAI BANKERS ASSOCIATION I'M OPTIMISTIC THAT WE'LL FINALLY GET THAT BEHIND US HE SAID DECLINING TO BE MORE PRECISE THE EFFORT TO WIN FULL BUSINESS RIGHTS FOR US FINANCIALSERVICE COMPANIES WILL FOCUS ON ABOUT A DOZEN RAPIDLY GROWING COUNTRIES AROUND THE WORLD WITH HALF THE COUNTRIES IN ASIA THE BIGGEST POTENTIAL PRIZE OF THE PROGRAM WILL BE CHINA WHICH HAS HUGE CAPITAL NEEDS AND MANY COMPANIES AND INDIVIDUALS CLAMORING TO INVEST BUT NO INVESTMENTBANKING SYSTEM TO HELP MATCH INVESTORS WITH OPPORTUNITIES THE NONASIAN COUNTRIES THE US WILL FOCUS ON INCLUDE TURKEY HUNGARY ARGENTINA AND BRAZIL TO HELP IMPROVE MARKET ACCESS IN ASIA THE TREASURY IS CONSIDERING BOOSTING ITS STAFF IN THE AREA TO PUSH MORE EFFECTIVELY FOR CHANGE FINANCIAL SERVICES MAKE A MAJOR CONTRIBUTION TO ECONOMIC GROWTH MR BENTSEN SAID THE SECTOR IS LIKE THE NERVOUS SYSTEM IT SENDS SIGNALS TO THE INDUSTRIAL MUSCLE DIRECTING CAPITAL AND INVESTMENT TO THE PROJECTS THAT PROMISE THE HIGHEST RETURN BECAUSE THE US HAS THE BIGGEST MOST CREATIVE CAPITAL MARKETS IN THE WORLD ITS BANKS BROKERS INSURANCE COMPANIES AND ASSOCIATED ACCOUNTANTS AND LAWYERS HAVE A LARGE ADVANTAGE OVER COMPETITORS FROM OTHER COUNTRIES OR AT LEAST THEY DO WHEN THEY'RE ALLOWED TO COMPETE IN 1992 THE US HAD A 61 BILLION TRADE SURPLUS IN FINANCIAL SERVICES COMPARED WITH A 96 BILLION MERCHANDISE TRADE DEFICIT THE GOAL OF THE US PROGRAM IS THAT ALL COUNTRIES TREAT FOREIGN FINANCIALSERVICE COMPANIES THE SAME WAY THEY REGULATE THEIR OWN COMPANIES FOR INSTANCE INDONESIAN LAW ALLOWS FOREIGN COMPANIES TO BE ONLY MINORITY OWNERS OF BANKS IN INDONESIA THAILAND WHICH IS IN THE PROCESS OF LIBERALIZING ACCESS TO ITS FINANCIAL MARKETS DOESN'T LET FOREIGN FIRMS BE MEMBERS OF THE THAI STOCK EXCHANGE JAPAN RESTRICTS ACCESS TO FOREIGN INSURANCE COMPANIES DURING THE RECENTLY COMPLETED EFFORT TO REWRITE WORLD TRADE RULES THE US TRIED AND FAILED TO OPEN FINANCIAL SERVICES GLOBALLY BUT THE AGREEMENT PROVIDED A TWOYEAR WINDOW TO NEGOTIATE NEW FINANCIALSERVICE RULES IF THAT EFFORT FAILS THE US WILL BE ABLE TO ACT AGAINST COUNTRIES THAT DON'T GIVE EQUITABLE TREATMENT TO US FIRMS CONGRESS IS EXPECTED TO PASS THIS YEAR THE FAIR TRADE IN FINANCIAL SERVICES ACT WHICH EMBODIES THIS APPROACH MR BENTSEN ACKNOWLEDGED THAT OPENING CLOSED FINANCIAL MARKETS CAN BE POLITICALLY AND ECONOMICALLY TRICKY HE SAID THE US WOULDN'T DEMAND IMMEDIATE CHANGE AS LONG AS NATIONS MOVE CONSISTENTLY TOWARD MOREOPEN MARKETS SOUTH KOREA FOR INSTANCE IS ADEPT AT DELAYING THE ENACTMENT OF ANNOUNCED PLANS TO OPEN ITS FINANCIAL MARKETS WHILE IN BANGKOK MR BENTSEN MET WITH A GROUP OF 11 US BANKERS INVESTMENT BANKERS AND INSURERS OPERATING IN ASIA TO HEAR THEIR CONCERNS JOHN WADSWORTH MORGAN STANLEY GROUP INC'S REPRESENTATIVE IN HONG KONG SAID THE GROUP URGED HIM TO ASSIGN A FULLTIME TREASURY ATTACHE IN ASIA TO WORK ON MARKETOPENING MEASURES MR BENTSEN SAID HE WOULD LOOK INTO IT THE STAKES ARE HIGH MR WADSWORTH SAID THE MARKET VALUE OF STOCKS TRADED ON ASIAN STOCK EXCHANGES OUTSIDE OF JAPAN IS 1 TRILLION UP FROM 180 BILLION IN 1988 HE PREDICTED THAT THE MARKET CAPITALIZATION OF STOCKS TRADED ON THE SHANGHAI STOCK EXCHANGE WILL BE 2 TRILLION IN 2000 MR BENTSEN'S NEXT STOP IS CHINA 9401190161 940119 HOME SHOPPING SELECTS MCI ST PETERSBURG FLA HOME SHOPPING NETWORK INC SAID IT SELECTED WASHINGTONBASED MCI COMMUNICATIONS CORP AS ITS PRIMARY 800 SERVICE PROVIDER AN AGREEMENT VALUED AT 38 MILLION UNDER THAT AGREEMENT THE ELECTRONIC RETAILER WILL EXPAND ITS MCI 800 SERVICE HOME SHOPPING SAID IT HANDLES OVER ONE MILLION TOLLFREE CALLS EACH WEEK 9401190160 940119 INTERNATIONAL AEROFLOT TO LEASE FOUR BOEING 767S FROM GPA GROUP BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AEROFLOT RUSSIAN INTERNATIONAL AIRLINES SIGNED A LETTER OF INTENT TO LEASE FOUR BOEING 767S FOR USE ON ITS TRANSATLANTIC ROUTES THE AIRCRAFT WILL BE LEASED FROM GPA GROUP PLC OF SHANNON IRELAND WHILE THE DEAL HASN'T YET BEEN MADE PUBLIC GE CAPITAL AVIATION SERVICES WHICH MANAGES GPA'S ASSETS SIGNED THE LETTER OF INTENT WITH AEROFLOT LATE LAST WEEK THEY'VE GOT TO GET THE VARIOUS APPROVALS AND SO DO WE SAID TREVOR HENDERSON CHIEF MARKETING OFFICER FOR THE UNIT OF GENERAL ELECTRIC CO OF FAIRFIELD CONN BUT I DON'T SEE ANY PROBLEMS THERE IF THE DEAL RECEIVES THE NECESSARY GREEN LIGHTS AEROFLOT WILL TAKE DELIVERY OF THE AIRCRAFT BETWEEN APRIL AND JUNE OF THIS YEAR MR HENDERSON SAYS THE DEAL CALLS FOR A STANDARD FIVEYEAR OPERATING LEASE FOR THE FOUR PLANES THE DEAL REPRESENTS AN IMPORTANT TOEHOLD IN RUSSIA FOR BOTH GPA AND SEATTLEBASED BOEING CO ALTHOUGH THE RUSSIAN ECONOMY IS IN A SHAMBLES MANY ANALYSTS BELIEVE ITS VAST GEOGRAPHY AND HUGE POPULATION PRESENT ENORMOUS OPPORTUNITIES FOR THE AVIATION INDUSTRY MOREOVER AEROFLOT RUSSIAN INTERNATIONAL STANDS OUT AS A CLEAR WINNER IN THE FRACTURED RUSSIAN AIRLINE SECTOR THE ONCE MONOLITHIC AEROFLOT HAS SPLINTERED INTO MORE THAN 100 SEPARATE COMPANIES MANY OF THEM STILL FLYING THE AEROFLOT COLORS BUT THE GOVERNMENT HAS GRANTED AEROFLOT RUSSIAN INTERNATIONAL EXCLUSIVE RIGHTS TO THE AEROFLOT BRAND NAME AND MADE IT THE COUNTRY'S MAIN INTERNATIONAL CARRIER AEROFLOT OFFICIALS IN MOSCOW COULD NOT BE REACHED FOR COMMENT ACCORDING TO MR HENDERSON AEROFLOT WILL USE THE PLANES ON ITS NORTH ATLANTIC ROUTES CURRENTLY AEROFLOT FLIES SOVIETBUILT ILYUSHIN AIRCRAFT ON ITS TRANSATLANTIC SERVICES TO MONTREAL NEW YORK SAN FRANCISCO CHICAGO AND WASHINGTON THE TWINENGINE 767300ER THE MODEL AEROFLOT WILL RECEIVE SEATS AS MANY AS 260 PEOPLE IN A TWOCLASS CONFIGURATION AND IS DESIGNED FOR LONGDISTANCE ROUTES WITH ONLY MODERATE TRAFFIC AEROFLOT DOES OPERATE SOME WESTERN JETLINERS FLYING FIVE AIRBUS INDUSTRIE TWINENGINE A310S FROM MOSCOW TO LONDON TOKYO HONG KONG AND SYDNEY BUT ANALYSTS SAY AEROFLOT WHICH HAS 103 SOVIETBUILT AIRCRAFT HAS BEEN ACTIVELY LOOKING FOR ADDITIONAL WESTERN WIDEBODY PLANES FOR ABOUT A YEAR BECAUSE OF PROBLEMS OBTAINING NEW PLANES FROM RUSSIAN FACTORIES THE STUMBLING BLOCK HAS BEEN HOW THE RUSSIAN CARRIER WOULD PAY FOR THE EXPENSIVE WESTERN EQUIPMENT THE LIST PRICE FOR THE FOUR 767S FOR EXAMPLE WOULD BE 280 MILLION GPA HOWEVER HAS EXTENSIVE EXPERIENCE IN DEALING WITH DIFFICULT CASES GPA HAS DONE DEALS WITH A LOT OF PEOPLE BANKS WOULDN'T TOUCH SAID CHRIS AVERY AVIATION ANALYST FOR PARIBAS CAPITAL MARKETS IN LONDON THE REASONING SEEMS TO BE THEY CAN GET THEIR PLANES BACK PRETTY QUICKLY IN FACT GPA'S PORTFOLIO INCLUDES BOEING PLANES LEASED TO A NUMBER OF STATES FORMERLY IN THE FORMER SOVIET BLOC IN PARTICULAR TWO 737S WITH AIR UKRAINE AND ONE WITH LITHUANIAN AIRLINES GPA USUALLY ENSURES THE CARRIER WILL HAVE ENOUGH HARD CURRENCY TO MAKE THE LEASE PAYMENTS BY REQUIRING THAT THE AIRCRAFT BE USED ON INTERNATIONAL ROUTES CURRENTLY GPA HAS TWO OF THE 767S THAT WILL GO TO AEROFLOT PLACED WITH OTHER AIRLINES AND WILL TAKE DELIVERY OF THE FINAL TWO JETLINERS THIS SPRING 9401190159 940119 GENERAL DYNAMICS GETS CONTRACT STERLING HEIGHTS MICH GENERAL DYNAMICS CORP SAID ITS LAND SYSTEMS DIVISION GOT A CONTRACT FROM THE ARMY'S TANK AUTOMOTIVE COMMAND FOR A KUWAIT PROJECT THE COMPANY SAID THE CONTRACT ISN'T TO EXCEED 157 MILLION AND WILL RUN FROM JANUARY 1994 THROUGH DECEMBER 1998 GENERAL DYNAMICS SAID THE CONTRACT IS FOR CONTRACTOR LOGISTICS SUPPORT FOR THE M1A2 TANK PROGRAM IN KUWAIT 9401190158 940119 NEW GOVERNMENT IN CANADA SAYS JOBS TO BE PRIORITY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT WHICH WON LAST FALL'S ELECTION ON A PROMISE OF JOBS FOR CANADIANS INTENDS TO CARRY THROUGH ON ITS PLEDGE BY GIVING THE HIGHEST PRIORITY TO JOB CREATION AND ECONOMIC GROWTH THE GOVERNMENT'S OBJECTIVES WERE SET OUT IN A SPEECH FROM THE THRONE AT THE OPENING OF A NEW SESSION OF PARLIAMENT THE SPEECH WRITTEN BY THE GOVERNMENT WAS READ TO PARLIAMENT BY GOVERNOR GENERAL RAY HNATYSHYN WITHIN DAYS OF TAKING OFFICE NOV 4 THE GOVERNMENT MOVED TO STRENGTHEN THE JOB MARKET BY LAUNCHING A SIX BILLION CANADIAN DOLLAR US455 BILLION PUBLIC WORKS PROGRAM IN COLLABORATION WITH PROVINCIAL AND MUNICIPAL GOVERNMENTS THE PROGRAM IS DESIGNED TO REDUCE UNEMPLOYMENT CURRENTLY 112 OF THE WORK FORCE THE GOVERNMENT'S DECLARATION TO PARLIAMENT HAD BEEN EXPECTED TO GIVE GREATER EMPHASIS TO ITS SERIOUS DEBT PROBLEM THE FEDERAL GOVERNMENT'S DEBT YESTERDAY REACHED C500 BILLION OR C17389 FOR EACH CANADIAN THE DEBT BURDEN IS PROPORTIONATELY HEAVIER THAN THAT OF MOST OTHER MAJOR INDUSTRIAL COUNTRIES INCLUDING THE US THE THRONE SPEECH SAID THE NEW GOVERNMENT'S FIRST BUDGET TO BE ANNOUNCED IN FEBRUARY WILL INCLUDE MEASURES TO BRING THE FEDERAL DEBT AND DEFICIT UNDER CONTROL IN A MANNER THAT IS COMPATIBLE WITH PUTTING CANADIANS BACK TO WORK BUT THE SPEECH DIDN'T HIGHLIGHT THE SERIOUSNESS OF THE COUNTRY'S DEBT PROBLEM OR SET OUT MEASURES FOR DEALING WITH IT THESE OMISSIONS MADE THE SPEECH SOUND LIKE A TRAVELOGUE ON LOS ANGELES THAT FORGOT TO MENTION THE EARTHQUAKE SAID PRESTON MANNING LEADER OF THE POPULIST REFORM PARTY THE LIBERAL GOVERNMENT REAFFIRMED THAT IT WILL REPLACE AN UNPOPULAR 7 VALUEADDED TAX INTRODUCED IN JANUARY 1991 BY THE PREVIOUS PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT BUT THE STATEMENT DIDN'T GIVE ANY INDICATION OF WHAT FORM THE REPLACEMENT TAX WOULD TAKE THE POLICY DOCUMENT ALSO SAID THE GOVERNMENT PLANS TO UNDERTAKE A MAJOR REFORM OF THE SOCIAL SECURITY SYSTEM TO BE COMPLETED WITHIN TWO YEARS THE REFORMS ARE EXPECTED TO TIGHTEN THE RULES OF THE COUNTRY'S UNEMPLOYMENTINSURANCE SYSTEM WHICH IS MUCH MORE GENEROUS THAN THAT OF THE US STUDIES INDICATE THAT OUR UNEMPLOYMENTINSURANCE SYSTEM CONTAINS IMPORTANT DISINCENTIVES TO WORK A FINANCE DEPARTMENT REPORT SAID THE LIBERALS TOOK OVER THE GOVERNMENT AS THE ECONOMY WAS GAINING MOMENTUM LED BY STRONG EXPORTS TO THE US THE GOVERNMENT HAS PREDICTED THAT THE ECONOMY WILL GROW 3 THIS YEAR 9401190157 940119 SAGE TECHNOLOGIES TO BUY CBM STAMFORD CONN SAGE TECHNOLOGIES INC SAID IT WILL ACQUIRE CBM INC FOR CASH AND STOCK BOTH COMPANIES PROVIDE COMPUTER PRODUCTS AND SERVICES THE VALUE OF THE DEAL WAS NOT DISCLOSED GERALD A POCH SAGE PRESIDENT AND COCHAIRMAN SAID CLOSELY HELD CBM WILL MERGE WITH ITS AMERIDATA UNIT HELPING AMERIDATA EXPAND INTO COMMERCIAL AND GOVERNMENT SALES IN THE SOUTHEAST AND MIDWEST CBM HAS 24 OFFICES IN THOSE REGIONS 9401190156 940119 HEALTH CANCER STUDY FINDS SUNSCREEN IS POOR SHIELD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SUNSCREENS ARE EFFECTIVE IN PREVENTING SUNBURN BUT MAY NOT PROVIDE PROTECTION AGAINST POTENTIALLY DEADLY MELANOMA SKIN CANCER A STUDY INVOLVING LABORATORY MICE SHOWS IN THE STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE RESEARCHERS AT THE UNIVERSITY OF TEXAS SAID THAT DESPITE SUNSCREENS MICE EXPOSED TO ULTRAVIOLET RAYS DEVELOPED MELANOMA TUMORS THE MOST SERIOUS FORM OF SKIN CANCER THIS IS AN IMPORTANT RESULT SAID DR ROBERT LEW A BIOSTATISTICIAN AT BRIGHAM & WOMEN'S HOSPITAL IN BOSTON EVEN THOUGH A STUDY ON MICE IS INCONCLUSIVE REGARDING THE EFFECT ON HUMANS IT SUGGESTS THAT PEOPLE AT HIGH RISK THOSE THAT HAVE LIGHT COMPLEXION OR A FAMILY HISTORY OF MELANOMA SHOULD THINK TWICE ABOUT HOW LONG THEY ARE EXPOSED TO THE SUN EVEN IF THEY HAVE SUNSCREEN ON MOST EXPERTS AGREE THAT SUNSCREENS PLAY A SIGNIFICANT ROLE IN PROTECTING PEOPLE FROM NONMELANOMA SKIN CANCERS BUT THE LATEST STUDY SENDS OUT A STRONG PUBLIC HEALTH MESSAGE ABOUT THE DANGERS OF MELANOMA DR LEW SAID IT'S EASY FOR EVEN ME TO DECEIVE MYSELF INTO THINKING THAT I CAN OVERDO THE AMOUNT OF TIME SPENT IN THE SUN IN THE STUDY RESEARCHERS AT THE MD ANDERSON CANCER CENTER IN HOUSTON ALSO SUGGESTED THAT SINCE SUNSCREENS ALLOW PEOPLE TO ENDURE LONGER SUN EXPOSURE BY REDUCING SWELLING OF THE SKIN THEY MAY ACCELERATE THE ONSET OF MELANOMA BY PROLONGING EXPOSURE TO ULTRAVIOLET RAYS MELANOMA USUALLY STARTS AS A LARGE IRREGULARSHAPED DISCOLORATION ON THE SKIN THAT DOESN'T ORDINARILY ITCH OR HURT AND IS EASY TO IGNORE HOWEVER UNLESS THE TUMOR IS SURGICALLY REMOVED AT AN EARLY STAGE IT CAN SPREAD TO OTHER ORGANS OF THE BODY AND CAN BE FATAL A 1992 FEDERAL STUDY SHOWED THAT THE DEATH RATE FOR MALIGNANT MELANOMA IS RISING SHARPLY IN THE US THE MORTALITY RATE AMONG MEN SHOT UP 50 BETWEEN 1973 AND 1988 TO 33 PER 100000 FROM 22 FOR WOMEN THE MORTALITY RATE IN THE SAME PERIOD ROSE 21 TO 17 FROM 14 PER 100000 THE BIGGEST INCREASE IN MORTALITY OCCURRED AMONG MEN AGE 50 AND OLDER SCHERINGPLOUGH CORP THE LEADING PRODUCER OF SUNSCREEN CALLED THE RESULTS OF THE STUDY QUESTIONABLE NOTING THAT THE RESEARCHERS USED A SUNLAMP INSTEAD OF A SOLAR SIMULATOR TO IRRADIATE THE MICE SCHERING BASED IN MADISON NJ SAID A SUN LAMP PRODUCES CERTAIN ULTRAVIOLET RADIATION THAT COULD SKEW THE RESULTS IT SEEMS THAT JUST ABOUT EVERY YEAR SOME NEW SCARE COMES UP ABOUT SUNSCREENS A COMPANY SPOKESMAN SAID HE NOTED THAT SUNSCREENS HAD BEEN ENDORSED BY VARIOUS MEDICAL GROUPS AS PROVIDING PROTECTION AGAINST VARIOUS SKIN CANCERS SCHERING HAD ESTIMATED SALES OF 1135 MILLION FROM SUNSCREEN PRODUCTS FOR THE 12 MONTHS ENDED MAY 30 1993 ACCORDING TO INFORMATION RESOURCES INC SKIN CANCER FEARS PERHAPS LINKED TO CONCERN THAT OZONE DEPLETION HAS INCREASED THE AMOUNT OF ULTRAVIOLET RADIATION REACHING THE EARTH HAVE HELPED BOOST SUNCARE PRODUCTS DESPITE THE TENTATIVE CONCLUSIONS OF THE STUDY THE RESEARCHERS STRESSED THAT PEOPLE SHOULD USE SUNSCREEN TO PROTECT AGAINST SUNBURN AND VARIOUS SKIN CANCERS ALTHOUGH THEY SAY PROTECTIVE CLOTHING IS PREFERABLE IN A COMMENTARY ACCOMPANYING THE REPORT DR LEW AND A COLLEAGUE DR HOWARD KOH A SKIN ONCOLOGIST AT BOSTON UNIVERSITY NOTE THAT THE REGULAR USE OF SUNSCREEN WITH A SUNPROTECTION FACTOR OF 15 DURING THE FIRST 18 YEARS OF LIFE CAN CUT BY 78 THE LIFETIME INCIDENCE OF NONMELANOMA SKIN CANCER DR CHERRIE K DONAWHO AN ASSISTANT IMMUNOLOGIST AT MD ANDERSON AND ONE OF THE AUTHORS OF THE STUDY SAID THE RESULTS WERE UNEXPECTED SINCE SUNSCREENS ARE KNOWN TO PROTECT AGAINST NONMELANOMA SKIN CANCERS SWELLING AND SUNBURN I REALLY THOUGHT THEY WOULD PROTECT AGAINST MELANOMA IN MICE SHE SAID AMONG HUMANS CHRONIC EXPOSURE TO THE SUN HASN'T GENERALLY BEEN LINKED TO A HIGHER MELANOMA RISK SHE SAID DR PETER WOLF PREVIOUSLY OF MD ANDERSON AND NOW AT THE UNIVERSITY OF GRAZ IN AUSTRIA ALSO AUTHORED THE STUDY THE STUDY WAS CONDUCTED ON LABORATORY MICE WHOSE EARS AND TAILS WERE TREATED WITH COMMONLY USED SUNSCREENS MICE EXPOSED TO ULTRAVIOLET RADIATION FROM SUNLAMPS AND THEN INJECTED WITH MELANOMA SKIN CANCER CELLS DEVELOPED MORE MALIGNANT TUMORS THAN UNEXPOSED MICE 9401190155 940119 WESTERN CO OF NORTH AMERICA HOUSTON WESTERN CO OF NORTH AMERICA SAID IT HAS BEGUN ITS OFFER TO PURCHASE ALL OF ITS 12 7/8 SENIOR NOTES DUE 2002 THE OILFIELD SERVICES COMPANY SAID THE PRICE OFFERED FOR THE SENIOR NOTES IS 1190 FOR EACH 1000 OF PRINCIPAL AMOUNT OUTSTANDING THERE IS 100 MILLION PRINCIPAL AMOUNT OUTSTANDING AND THE SCHEDULED EXPIRATION DATE OF THE OFFER IS FEB 14 9401190154 940119 ARX UNIT BUYS GE OPERATION PLAINVIEW NY ARX INC SAID ITS AEROFLEX LABORATORIES UNIT PAID 57 MILLION FOR ALL OPERATING ASSETS OF GENERAL ELECTRIC CO'S MARCONI CIRCUIT TECHNOLOGY CORP UNIT THE COMPANY MAKES VARIOUS MICROELECTRONICS PRODUCTS 9401190153 940119 CORPORATE FOCUS SHANGHAI PETROCHEMICAL FACES CHALLENGES OF REFORM PROFIT HAS INCREASED BUT MANY KEY DECISIONS REMAIN IN CHINA'S HANDS BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL JINSHAN CHINA FOR ALL THE FUMBLED INITIATIVES AND HALF MEASURES THAT CHINA HAS TAKEN TO REFORM ITS MONEYLOSING STATE ENTERPRISES THE SECOND LIFE OF SHANGHAI PETROCHEMICAL CO OFFERS A RAY OF HOPE FEW OLD FACTORIES ANYWHERE IN THE COMMUNIST OR FORMERLY COMMUNIST WORLD CAN BOAST THE KIND OF TURNAROUND THAT CHINA'S LARGEST PETROCHEMICAL COMPANY AND ITS NINTHLARGEST STATERUN ENTERPRISE EXPERIENCED LAST YEAR WHILE TWOTHIRDS OF CHINA'S 13000 INDUSTRIAL BEHEMOTHS SAW A DEFICIT OR STRUGGLED TO BREAK EVEN SHANGHAI PETROCHEMICAL SPENT MOST OF THE YEAR TRYING TO KEEP TRACK OF ITS BULGING BANK BALANCE AND SOARING MARKET VALUE WE'RE THE DOW CHEMICAL OF CHINA SAID WANG JIMING SHANGHAI PETROCHEMICAL'S EFFUSIVE CHAIRMAN IN A RECENT INTERVIEW I LOVE MY JOB EVERYONE IS PAYING ATTENTION TO US THE COMPANY REVAMPED UNDER THE SUPERVISION OF MERRILL LYNCH & CO LAST YEAR JOINED A CHINESE STEELMAKER AUTO MAKER AND BREWERY IN ISSUING STOCK ABROAD THE COMPANIES BLAZED A REFORM TRAIL FOR CHINA'S AILING STATE SECTOR AND AS MANY AS 20 OTHER STATE COMPANIES WILL FOLLOW SUIT THIS YEAR IN THE US SHANGHAI PETROCHEMICAL IS TRADED IN THE FORM OF AMERICAN DEPOSITARY SHARES ON THE NEW YORK STOCK EXCHANGE THE STOCK'S VALUE HAS MORE THAN DOUBLED SINCE ITS OFFERING IN JULY THE ADRS WERE QUOTED AT 41875 UP 25 CENTS TUESDAY EVEN AFTER ITS RESTRUCTURING HOWEVER SHANGHAI PETROCHEMICAL MUST BALANCE DEMANDS OF ITS NEW INVESTORS WITH THOSE OF BEIJING'S BUREAUCRATS THE COMPANY'S REFORM IS A TEST OF WHETHER CHINA CAN OVERCOME THE LEGACY OF CENTRAL PLANNING BEFORE IT SCRAPS THE CENTRAL PLAN MAJOR BUSINESS DECISIONS INCLUDING THE COMPANY'S PRODUCT LINEUP STAFFING LEVELS AND POSSIBLE JOINT VENTURES WITH FOREIGN CONCERNS DEPEND ON CHINA NATIONAL PETROLEUM CORP OR SINOPEC THE COMPANY'S MAJORITY SHAREHOLDER AND PARENT FOR SHANGHAI PETROCHEMICAL MINISTRYLEVEL SINOPEC IS THE GHOST OF CENTRAL PLANNING IN THE GARB OF A MODERN INVESTOR SINOPEC AND THE CENTRAL GOVERNMENT STILL CONTROL ABOUT 40 OF SHANGHAI PETROCHEMICAL'S OUTPUT AND PROVIDE ALMOST 100 OF ITS PRIMARY RAW MATERIAL CRUDE OIL AT 60 OF WORLDMARKET PRICES THOSE PERCENTAGES WILL INEVITABLY CHANGE COMPANY OFFICIALS SAID BUT DECISIONS ABOUT HOW AND WHEN ARE IN THE HANDS OF BUREAUCRATS IN AN ATTEMPT TO ENSURE STEADY PROFIT GROWTH AMID AN UNCERTAIN ENVIRONMENT THE COMPANY HAS DECIDED TO MOVE AWAY FROM ITS HISTORICAL SPECIALTY INTERMEDIATE PETROCHEMICAL AND PETROLEUM PRODUCTS AND INCREASE PRODUCTION OF DOWNSTREAM AND HIGHERVALUEADDED PRODUCTS SUCH AS POLYPROPYLENE FIBER POLYESTER STAPLES SYNTHETIC FIBERS PLASTICS AND RESINS DOWNSTREAM REFERS TO THE REFINEMENT OF OIL INTO VARIOUS PRODUCTS AS LONG AS A SUBSTANTIAL PROPORTION OF THE COMPANY'S PRODUCT REMAINS CONTROLLED BY THE STATE THE STRATEGY SEEMS TO HAVE PROMISE SINOPEC ON THE WHOLE CONTROLS FEWER DOWNSTREAM PRODUCTS WHICH ALLOWS PROFIT MARGINS OF 25 OR MORE IN CHINA'S HEAVILY PROTECTED MARKET IN 1993 A SHARP REDUCTION IN STATE CONTROL OF OUTPUT PRICES CONTRIBUTED HEAVILY TO SHANGHAI PETROCHEMICAL'S PROFIT GROWTH FIRSTHALF SALES JUMPED TO 4354 MILLION AND PROFITS MORE THAN DOUBLED FROM THE COMPARABLE 1992 PERIOD TO 537 MILLION COMPANY OFFICIALS HOPE THE CONTINUED SHIFT TOWARD DOWNSTREAM PRODUCTS WILL BOOST PROFITS EVEN MORE THE COMPANY HAS STARTED CONSTRUCTION ON AN 800000TON RESIDUAL OIL PROCESSING PLANT THAT WILL ALLOW IT TO PRODUCE HIGHERGRADE PETROLEUM PRODUCTS IT RECENTLY ANNOUNCED A JOINT VENTURE WITH A LOCAL COMPANY TO PRODUCE AND SELL A RANGE OF OTHER PLASTICS PRODUCTS ABOUT TWO WEEKS AGO THE COMPANY INVESTED 6 MILLION TO TAKE CONTROL OF TWO LOCAL COMPANIES INVOLVED IN SUCH BUSINESSES AS GAS STATIONS AND REAL ESTATE MANY ANALYSTS SEE RAPID DIVERSIFICATION AS THE BEST WAY TO ADJUST TO UNPREDICTABLE STATE CONTROLS AND POTENTIAL PRICE RISES OF RAW MATERIALS THIS KIND OF PROBLEM IS UNAVOIDABLE FOR ANY STATE FIRM IN CHINA SHANGHAI PETROCHEMICAL AT LEAST HAS A PLAN TO DEAL WITH IT SAID STANLEY NG AN ANALYST WITH STANDARD CHARTERED SECURITIES IN HONG KONG JOHN CROSSMAN MANAGER OF JARDINE FLEMING'S SHANGHAI OFFICE SAID THE MOVE TO DOWNSTREAM PRODUCTS WILL HELP ABSORB EXCESS LABOR AS WELL BUT SOME FOREIGN PETROCHEMICAL COMPANY EXECUTIVES REMAIN SKEPTICAL THEY SAID FOREIGN COMPANIES SALIVATE AT THE PROSPECT OF GREATER ACCESS TO CHINA'S DOWNSTREAM PETROCHEMICAL MARKET AS THE COUNTRY SEEKS TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE BY THE END OF THIS YEAR A GOAL THAT WOULD REQUIRE DEEP TARIFF REDUCTIONS TARIFFS ON PETROCHEMICAL IMPORTS NOW AVERAGE ABOUT 30 FOREIGNERS POINT TO THEIR EXPERIENCE IN CHINA'S SOUTHERN SPECIAL ECONOMIC ZONES WHERE LOW TARIFF LEVELS HAVE ALLOWED FOREIGN CONCERNS TO TAKE DOMINANT POSITIONS IN SOME PRODUCT AREAS ONE AMERICAN COMPANY EXECUTIVE SAID SHANGHAI PETROCHEMICAL WILL NEVER BECOME A WORLD COMPETITOR UNLESS IT SOLIDIFIES ITS CORE OPERATIONS INSTEAD OF INVESTING IN UNPROVEN AREAS HE PUT THE BLAME HOWEVER ON SINOPEC RATHER THAN ON THE COMPANY ITSELF WHICH HE SAID HAS UNUSUALLY COMPETENT MANAGERS THEY'VE GOT THEIR FEET STUCK IN THE STATE PLAN IN A NUMBER OF WAYS SAID THE AMERICAN COMPANY EXECUTIVE PETROCHEMICALS ARE A LOWPRICED COMMODITY ITEM YOU HAVE TO BE LEAN TO SURVIVE SHANGHAI PETROCHEMICAL WOULD LIKE TO TRIM ITS STAFF IT EMPLOYS ABOUT 40000 A MOVE THAT WOULD ALLOW IT TO DRAW MORE PROFITS FROM ITS LESS LABORINTENSIVE UPSTREAM BUSINESS MR WANG THE COMPANY'S CHAIRMAN DESCRIBED OVERSTAFFING AS HIS NO 1 PROBLEM STILL ONE SHANGHAI PETROCHEMICAL OFFICIAL SAID SINOPEC WOULD NOT TOLERATE LAYOFFS FROM ONE OF ITS PROFITABLE SUBSIDIARIES ESPECIALLY WHEN LAYOFFS WOULD INCREASE THE WELFARE BURDEN OF SINOPEC ITSELF IF WE CATCH SOMEONE STEALING THEN MAYBE WE CAN FIRE HIM THE EXECUTIVE SAID SINOPEC INTERVENES IN BASIC STRATEGY DECISIONS AS WELL WHEN FRENCH PETROCHEMICAL CONCERN SOCIETE NATIONALE ELF AQUITAINE SOUGHT A JOINT VENTURE PARTNER IN CHINA SINOPEC ASSIGNED SHANGHAI PETROCHEMICAL TO PURSUE THE 1 BILLIONPLUS TRANSACTION WHICH IS CURRENTLY IN THE FINAL STAGES OF A FEASIBILITY STUDY MR WANG SAID ONLY THAT HE HAD NO OPINION ABOUT THE PROPOSED ALLIANCE AN ELF AQUITAINE EXECUTIVE BASED IN CHINA SAID THE REAL PLAYER IS SINOPEC SPC IS MANDATED TO STUDY THE PROJECT WITH US THE OFFICIAL SAID WE DON'T HAVE MUCH DIRECT CONTACT MERRILL LYNCH SHANGHAI PETROCHEMICAL'S UNDERWRITER CITED SINOPEC'S MAJORITY CONTROL AND THE UNCERTAINTIES OF STATE PLANNING AS TWO OF THE RISK FACTORS FOR INVESTORS MERRILL LYNCH ANALYSTS SAID THEY REMAIN OPTIMISTIC ABOUT THE COMPANY'S PROSPECTS IN THE LONG TERM BUT THEY HAVE QUESTIONS ABOUT SINOPEC SINOPEC HAS JUST BECOME A HUGE WELFARE STATE IN AND OF ITSELF SAID PAMELA CHENG AN ANALYST FOR MERRILL LYNCH IN HONG KONG IF IT SINOPEC IS NOT EFFICIENT IT MAY BE CAUSE FOR CONCERN DOWN THE ROAD 9401190152 940119 PROFIT SOARED AT CITICORP WELLS FARGO FOUR OTHER BANKS IN FOURTH QUARTER BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL A HALF DOZEN OF THE NATION'S LARGEST BANKS REPORTED SHARPLY HIGHER FOURTHQUARTER EARNINGS AIDED BY CONTINUED WIDE MARGINS BETWEEN LENDING RATES AND THE BANKS' OWN COST OF FUNDS STRONG TRADING RESULTS AND REDUCTIONS IN LOANLOSS PROVISIONS THREE OTHER BANKS' PROFITS ROSE MODESTLY CITICORP REPORTED EARNINGS MORE THAN DOUBLED WHILE WELLS FARGO & CO PROFIT MORE THAN TRIPLED NET INCOME AT CHEMICAL BANKING CORP ROSE 14 NATIONSBANK 59 CHASE MANHATTAN CORP 85 FIRST INTERSTATE BANCORP 78 BANC ONE CORP 39 COMERICA INC 27 AND CONTINENTAL BANK CORP 11 DESPITE THE GOOD NEWS PRICES OF MANY BANK STOCKS FELL OR WERE ESSENTIALLY FLAT CONTINUING A TREND IN WHICH INVESTORS REACT TO HIGHER EARNINGS WITH PROFITTAKING ALSO WELLS FARGO STOCK FELL 250 A SHARE OR 18 TO CLOSE AT 133625 WHILE FIRST INTERSTATE'S SHARES FELL SHARPLY TO 6575 DOWN 3 OR 44 COMERICA STOCK FELL 125 CENTS OR 05 TO CLOSE AT 27125 AND CONTINENTAL COMMON STOCK ROSE 125 CENTS OR 05 TO CLOSE AT 2675 PEOPLE HAVE MADE A LOT OF MONEY ON BANK STOCKS JAMES ROSENBERG A BANK ANALYST AT LEHMAN BROTHERS THEY ARE LOOKING FOR EXCUSES TO SELL THEM FOR THE MONEYCENTER BANKS SECURITIES AND CURRENCYTRADING PROFITS CONTINUED TO BE STRONG ALTHOUGH TRADING REVENUE TYPICALLY DECLINES IN THE FOURTH QUARTER IT REMAINED VIRTUALLY CONSTANT LAST YEAR TRADING WAS SURPRISINGLY STRONG SAID JUDAH KRAUSHAAR A BANKING ANALYST WITH MERRILL LYNCH & CO WHO ALSO OFFERED A POTENTIAL EXPLANATION FOR THE GAINS SOME OF THE BANKS CHANGED THEIR COMPENSATION SCHEMES SO THAT THEIR TRADERS WERE MORE AGGRESSIVE IN DECEMBER CREDIT QUALITY CONTINUED TO IMPROVE DURING THE QUARTER ALLOWING SEVERAL BANKS TO REDUCE THEIR LOSS PROVISIONS NEW YORKBASED CITIBANK'S PROVISION FOR THE QUARTER FELL TO 414 MILLION DOWN SLIGHTLY FROM 419 MILLION IN THE THIRD QUARTER AND 548 MILLION IN THE YEAREARLIER PERIOD THE LOSS PROVISION AT NEW YORKBASED CHEMICAL DROPPED TO 286 MILLION IN THE QUARTER COMPARED WITH 298 MILLION IN THE THIRD QUARTER AND 315 MILLION IN THE FOURTH QUARTER OF LAST YEAR PROVISIONS AT SAN FRANCISCOBASED WELLS FARGO DROPPED TO LEVELS BEFORE THE CRASH IN REALESTATE VALUES ACCORDING TO ROBERT ALBERTSON A BANK ANALYST WITH GOLDMAN SACHS & CO MOST PEOPLE THOUGHT IT WOULD TAKE YEARS FOR WELLS TO GET BACK TO THAT LEVEL MR ALBERTSON SAID BUT THERE HAS BEEN AN ALMOST NOSEDIVING OF PROVISIONS ACROSS THE INDUSTRY WHILE LOAN GROWTH IS LESS IMPORTANT TO THE MONEYCENTER BANKS BECAUSE OF INCREASING EMPHASIS ON NONLENDING ACTIVITIES REGIONAL BANKS BENEFITED FROM AN APPARENT STEADY INCREASE IN LENDING PARTICULARLY TO CONSUMERS AT BANC ONE REPORTING NET INCOME OF MORE THAN 1 BILLION FOR THE FIRST TIME CONSUMER LOANS AT THE COLUMBUS OHIO CONCERN CLIMBED TO AN AVERAGE 155 BILLION UP 22 FROM A YEAR EARLIER CREDITCARD LOANS ROSE 19 TO AN AVERAGE 55 BILLION BUT FOR MANY BANKS NET INTEREST MARGINS WHICH PEAKED IN THE FIRST QUARTER LAST YEAR CONTINUED TO SLIP SLIGHTLY IN THE MOST RECENT PERIOD MARGINS WERE AFFECTED BY LOWER YIELDS FROM BOTH LOANS AND SECURITIES AS WELL AS A DECLINE IN SHORTTERM LOWYIELD DEPOSITS HOWEVER THE TRADING RESULTS LOWER LOANLOSS PROVISIONS AND INCREASED LOANS MORE THAN COMPENSATED FOR THE TIGHTER MARGINS CHASE MANAGED TO BUCK THE TREND OF LOWER MARGINS ALTOGETHER IN PART BECAUSE OF EXTRAORDINARY ITEMS BUT ALSO BECAUSE OF AN INCREASE IN LOAN FEES AND A RISE IN MORTGAGE LOANS SEVERAL BANKS INCLUDING CITICORP CHEMICAL AND CHASE BENEFITED DURING THE QUARTER FROM ARGENTINA'S PAYMENT OF 12 BILLION TO SETTLE OVERDUE BORROWINGS MAINLY IN THE FORM OF FLOATINGRATE BONDS CHASE ALSO EARNED A SPECIAL GAIN FROM ITS SALE OF REALESTATE ASSETS CHEMICAL'S GAIN WAS PARTIALLY OFFSET BY A 53 MILLION SPECIAL CHARGE RESULTING FROM THE LAUNCH OF ITS NEW COBRANDED SHELL OIL MASTERCARD ALONG WITH THE IMPROVED EARNINGS MANY BANKS ANNOUNCED DRAMATIC IMPROVEMENTS IN OVERALL ASSET QUALITY CHASE DECREASED ITS DISPOSITION PORTFOLIO BY 500 MILLION DURING THE QUARTER REDUCING THE BALANCE TO 222 MILLION AT YEAR END CHEMICAL'S NONPERFORMING ASSETS FELL BY 607 MILLION DURING THE QUARTER DOWN TO 35 BILLION AT YEAR END IN RESPONSE TO CITICORP'S IMPROVING BALANCE SHEET MOODY'S INVESTORS SERVICE INC SAID IT IS CONSIDERING A POSSIBLE UPGRADE FOR CITICORP SENIOR DEBT NOW RATED BAA1 A CHANGE WOULD AFFECT ABOUT 34 BILLION IN DEBT CONTINENTAL BANK IS BASED IN CHICAGO FIRST INTERSTATE IN LOS ANGELES NATIONSBANK IN CHARLOTTE NC COMERICA IN DETROIT AND CHASE MANHATTAN IN NEW YORK 9401190151 940119 BUILDERS WAREHOUSE'S NEW STORES CONWAY ARK BUILDERS WAREHOUSE ASSOCIATION INC UNVEILED ITS NEW INTERIORS PLUS CONCEPT STORE WHICH IT HAS BEGUN FRANCHISING THE COMPANY SAID THE STORES WILL OFFER VARIOUS HOME DECORATIONS AND WILL BE DESIGNED PRIMARILY FOR PROFESSIONAL BUILDERS AND REMODELERS THE COMPANY SAID THE FIRST INTERIORS PLUS STORE SHOULD OPEN NEXT WEEK 9401190150 940119 MORRISON KNUDSEN LOCOMOTIVES BOISE IDAHO MORRISON KNUDSEN CORP SAID THE SANTA FE RAILWAY WILL LEASE TWO OF ITS RECENTLY DEVELOPED SWITCHER LOCOMOTIVES WHICH ARE POWERED BY LIQUEFIED NATURAL GAS SANTA FE A UNIT OF SANTA FE PACIFIC CORP SCHAUMBURG ILL WILL LEASE THE LOCOMOTIVES FOR THREE YEARS AFTER DELIVERY THIS SPRING FINANCIAL TERMS WERE NOT DISCLOSED 9401190149 940119 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB SOBERS THE US FOR THE CLINTON ADMINISTRATION THIS WEEK IS TURNING INTO THE WOOZY MORNING AFTER THE BIG RUSSIA PARTY BUT THAT'S NOT ALL BAD BECAUSE IT'S TIME FOR A MORE SOBER LOOK AT WHERE RUSSIA IS HEADED AND HOW THE US CAN USE WHAT LITTLE INFLUENCE IT HAS ALONG THE WAY THE SOBERINGUP IS OCCURRING OF COURSE BECAUSE AS SOON AS PRESIDENT CLINTON FINISHED PLEDGING HIS SUPPORT FOR ECONOMIC REFORMERS IN MOSCOW AND LEFT TOWN THOSE SAME REFORMERS BEGAN BAILING OUT OF THE GOVERNMENT ECONOMICS MINISTER YEGOR GAIDAR THE PERSONIFICATION OF ECONOMIC REFORM RESIGNED IN DISGUST AND IT'S BECOMING CLEAR THAT BORIS FYODOROV THE FINANCE MINISTER AND ANOTHER REFORM CHAMPION WILL EITHER DEPART OR ASSUME A LESS PROMINENT ROLE IN THE NEW RUSSIAN GOVERNMENT ASIDE FROM FRUSTRATING MR CLINTON THOSE DEVELOPMENTS BROUGHT A DOSE OF GLOOM TO THE ADMINISTRATION YESTERDAY GLOOM SEEMS APPROPRIATE PANIC HOWEVER ISN'T IT'S POSSIBLE THAT WHAT'S UNFOLDING IN MOSCOW IS THE END OF MEANINGFUL ECONOMIC REFORM AND THE REEMERGENCE OF AN UNREFORMED CADRE OF OLD COMMUNISTS WITH NO INTEREST IN ECONOMIC REFORM OR COOPERATION WITH THE WEST BUT CLINTONADMINISTRATION OPTIMISTS SEE ANOTHER POSSIBILITY THEY HOPE THAT IN THE AFTERMATH OF THE DECEMBER ELECTIONS AND THE INCREASED POWER GIVEN TO ULTRANATIONALISTS AND OLD COMMUNISTS RUSSIA MAY SIMPLY BE HEADED INTO A TEMPORARY PERIOD OF BAD POLICIES AND DETERIORIATING CONDITIONS ONCE THOSE POLICIES ARE DISCREDITED THAT MAY OPEN UP A NEW CHANCE FOR REFORM AT THAT POINT WITH THE RETROGRADES' CREDIBILITY SHOT THE REFORMERS CAN REGAIN THE UPPER HAND WITH THEIR AUTHORITY ENHANCED ANYBODY WHO HAS WATCHED THE RUSSIAN SAGA OVER THE LAST FIVE YEARS RECOGNIZES THIS CYCLE BOTH MIKHAIL GORBACHEV AND BORIS YELTSIN AT VARIOUS TIMES DRIFTED BETWEEN REFORMERS AND THE OLD GUARD THE FACT IS THAT NOBODY KNOWS WHICH SCENARIO TO BET ON NOW AMID THIS UNCERTAINTY WHAT'S NEEDED IS A MORE CONSISTENT AMERICAN APPROACH ONE THAT BOTH RECOGNIZES THE LIMITS OF AMERICAN ABILITY TO CONTROL EVENTS AND AVOIDS ACTUALLY HURTING THE VERY CAUSE OF ECONOMIC REFORM THIS KIND OF APPROACH BEGINS WITH AN ACKNOWLEDGEMENT THAT THE US CAN'T CONTROL OR FORECAST EVENTS IN RUSSIA THAT WILL REQUIRE THE CLINTON ADMINISTRATION TO RESIST LIBERAL VOICES THAT CALL FOR PULLING THE PLUG ON THE NORTH ATLANTIC TREATY ORGANIZATION OR RADICALLY REDUCING AMERICAN DEFENSE BUDGETS JUST AS THE RUSSIA STORY WILL TAKE YEARS TO UNFOLD SO SHOULD THE ULTIMATE DECISIONS ABOUT PRECISELY WHAT TO DO WITH NATO AND WHAT LEVEL OF DEFENSE SPENDING IS SAFE IN THE LONG RUN THE SECOND STEP IS TO STOP OVERPROMISING THE AMOUNT OF HELP THE US AND ITS ALLIES WILL GIVE TO RUSSIA THE WEST MAY NEVER RECOVER FROM THE BITTERNESS IT ENGENDERED IN MOSCOW BY PROMISING BIG AID PACKAGES IN BOTH 1992 AND 1993 WHICH RUSSIANS LATER DISCOVERED WERE MORE SMOKE THAN SUBSTANCE AND FINALLY THE ADMINISTRATION WOULD DO WELL TO MORE CLEARLY AND CONSISTENTLY SPELL OUT ITS APPROACH TO RUSSIAN ECONOMIC REFORM THE CLINTON ADMINISTRATION SHOT ITSELF IN THE FOOT A FEW WEEKS AGO BY PROCLAIMING THAT RUSSIA'S ECONOMIC SHOCK THERAPY HAD OFFERED THE RUSSIAN PEOPLE TOO MUCH SHOCK AND NOT ENOUGH THERAPY THAT LINE WHICH THE ADMINISTRATION SOON ABANDONED UNDERCUT THE REFORMERS BY SEEMING TO CONFIRM THEIR CRITICS' COMPLAINTS THAT ECONOMIC CHANGES WERE SIMPLY DOLING OUT PAINFUL MEDICINE WITHOUT OFFERING ANY RELIEF TO THE RUSSIAN PEOPLE THE FACT IS THAT SO FAR AT LEAST RUSSIA HASN'T HAD EITHER ENOUGH SHOCK NOR ENOUGH THERAPY THE SENSIBLE APPROACH FOR NOW IS TO KEEP FUNNELING IN PLENTY OF DIRECT AMERICAN AID PARTICULARLY AID THAT WILL REACH BEYOND MR YELTSIN'S CONFUSED GOVERNMENT AND HELP SMALL BUSINESSES BIG COMPANIES THAT ARE STRUGGLING TO PRIVATIZE AND FREEMARKET EXPERIMENTERS OUTSIDE MOSCOW THAT WILL HELP KEEP NOURISHING THE SEEDS OF A FREE MARKET IN RUSSIA EVEN IF THE CENTRAL GOVERNMENT PULLS AWAY FROM A REFORMIST LINE AND IF THE THEORY ABOUT MOSCOW'S POLITICAL CYCLES PROVES CORRECT THE WEST SHOULD PREPARE NOW TO JUMP IN ONCE REFORMERS REGAIN THEIR POLITICAL FOOTING INTERNATIONAL FINANCIAL INSTITUTIONS SHOULD THEN BE READY TO MOVE IN WITH MORE MONEY PROVIDED MORE QUICKLY THAN BEFORE IN PARTICULAR ECONOMIC REFORMERS WILL NEED A BIG DOSE OF WESTERN HELP TO HOLD DOWN THE GOVERNMENT'S BUDGET DEFICIT WHICH IS DRIVING THE NEED TO PRINT MORE RUBLES AND FUELING THE INFLATION THAT ROBS THE AVERAGE RUSSIAN OF THE SENSE THAT ECONOMIC REFORMS ARE OFFERING ANYTHING POSITIVE THE INTERNATIONAL MONETARY FUND HAS BEEN TOO BUREAUCRATIC AND TECHNOCRATIC WHEN IT'S HAD OPENINGS TO HELP IN THE PAST NOW THAT THE ELECTIONS HAVE GIVEN THE WEST A GLIMPSE AT THE DARK SIDE OF CHANGE IN RUSSIA THERE WON'T BE ANY EXCUSE FOR LETTING THAT HAPPEN AGAIN 9401190148 940119 MARKETING & MEDIA CBS WILL BE CROWNED WINNER OF RIGHTS TO TELEVISE JAPAN'S '98 WINTER OYMPICS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE INTERNATIONAL OLYMPICS COMMITTEE IS EXPECTED TO ANNOUNCE TODAY THAT CBS INC HAS WON THE RIGHTS TO TELEVISE THE 1998 WINTER OLYMPICS IN NAGANO JAPAN THE EXPECTED WIN FOR AN ESTIMATED 375 MILLION FOLLOWS CBS'S STUNNING LOSS IN DECEMBER OF THE RIGHTS TO A PACKAGE OF NATIONAL FOOTBALL LEAGUE GAMES THAT THE NETWORK HAD HELD FOR 38 YEARS CBS WAS OUTBID BY NEWS CORP'S FOX NETWORK WHICH BID 158 BILLION OVER FOUR YEARS 400 MILLION MORE THAN CBS WAS WILLING TO OFFER BY CONTRAST CBS WON THE RIGHTS TO THE 1998 NAGANO GAMES THE NETWORK'S THIRD CONSECUTIVE WINTER OLYMPICS WITHOUT A FIGHT GENERAL ELECTRIC CO'S NBC AND CAPITAL CITIES/ABC INC'S ABC DECIDED TO PASS ON THE GAMES BECAUSE THEY WERE TOO EXPENSIVE GIVEN WHAT CBS WAS WILLING TO BID AND THE IOC AND FOX DECIDED MUTUALLY THAT FOX WHICH INITIALLY EXPRESSED AN INTEREST IN THE GAMES WOULD NOT BID SAID RICHARD POUND A MEMBER OF THE IOC'S EXECUTIVE BOARD WE AGREED WITH FOX THAT AT THIS TIME IN THEIR EVOLUTION AND OURS THE BEST THING FOR US WOULD BE TO NEGOTIATE WITH CBS AND SEE IF WE COULD REACH AN AGREEMENT MR POUND SAID ADDING THAT FOX STILL NEEDS TO SHOW THAT IT CAN DO A TERRIFIC JOB WITH THE PROPERTIES THEY HAVE NOW CBS'S WINNING BID OF 375 MILLION IS AN INCREASE OF 27 FROM THE 295 MILLION IT PAID FOR THE 1994 WINTER OLYMPICS IN LILLEHAMMER NORWAY WHICH BEGIN FEB 12 WHILE CBS'S COMPETITORS FELT THEY COULDN'T MAKE MONEY AT THAT LEVEL OF BIDDING CBS BELIEVES OTHER FACTORS CAN MAKE UP FOR POTENTIAL FINANCIAL LOSSES FOR EXAMPLE THE NETWORK IS TRYING TO SUSTAIN A SPORTS DIVISION THAT SUDDENLY IS BEREFT OF SEVERAL TOPFLIGHT EVENTS INCLUDING MAJOR LEAGUE BASEBALL AND THE NFL IN ADDITION THE WINTER GAMES A COMBINATION OF LIVE AND TAPED EVENTS WILL HELP CBS AFFILIATE STATIONS WHICH DEPEND ON FEBRUARY RATINGS TO SET AD RATES THE AFFILIATES AGREED LAST WEEK TO GIVE THE NETWORK SOME FINANCIAL SUPPORT FOR THE GAMES CBS'S SEVEN OWNED TELEVISION STATIONS WILL ALSO BENEFIT FROM HIGHER RATINGS DURING THE OLYMPICS CBS IS ALSO BETTING THAT THE ECONOMY WILL IMPROVE AND THAT IT WILL BE ABLE TO RECOUP FROM ADVERTISERS THE RIGHTS FEES AS WELL AS PRODUCTION EXPENSES THAT ARE EXPECTED TO BE HIGH CONSIDERING THE COST OF DOING BUSINESS IN JAPAN 9401190147 940119 INTERNATIONAL SPANISH BANK'S HEFTY SHORTFALL STIRS DEBATE ON SIZE OF STOCKHOLDERS' BURDEN BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL MADRID AS BANCO ESPANOL DE CREDITO'S NEW MANAGERS WRESTLE WITH THE TASK OF ASSESSING A FINANCIAL SHORTFALL NOW THOUGHT LIKELY TO REACH AT LEAST 700 BILLION PESETAS 485 BILLION A BATTLE IS BEING FOUGHT BEHIND THE SCENES OVER HOW MUCH OF THE BURDEN SHOULD BE BORNE BY THE BANK'S SHAREHOLDERS TO COVER THE SHORTFALL BANESTO'S NEW MANAGEMENT TEAM IS EXPECTED TO PROPOSE A PACKAGE INCLUDING AID FROM A CENTRAL DEPOSITGUARANTEE FUND THE WRITING OFF OF MOST THE BANK'S 330 BILLIONPESETA CAPITAL AND RESERVES AND A SUBSEQUENT CAPITAL INCREASE THIS WOULD INVOLVE AMONG OTHER THINGS A REDUCTION IN THE NOMINAL VALUE OF BANESTO SHARES CURRENTLY 700 PESETAS TO 500 PESETAS AND POSSIBLY SUBSTANTIALLY LOWER STILL UNDECIDED IS JUST HOW LARGE THIS REDUCTION SHOULD BE WHILE PURISTS INCLUDING OFFICIALS AT OTHER SPANISH BANKS ARGUE THAT THE WRITEOFF SHOULD BE TOTAL SHAREHOLDERS ARE TRYING TO PERSUADE THE SPANISH GOVERNMENT TO TAKE A SOFTER LINE REPRESENTATIVES OF SHAREHOLDER ASSOCIATIONS ARGUE THAT A TOTAL WRITEOFF WOULD BE UNFAIR TO THOSE INVESTORS WHO BOUGHT BANESTO SHARES ON THE BASIS OF OPTIMISTIC PREDICTIONS PUBLISHED BY JP MORGAN & CO THE NEW YORKBASED INVESTMENT BANK IN THE CONTEXT OF A BANESTO CAPITAL INCREASE IT LED LAST YEAR JP MORGAN AND THE SPANISH BANK'S DISCREDITED FORMER CHAIRMAN MARIO CONDE HAVE THEIR OWN INTERESTS TO DEFEND IN ADDITION TO LEADING THE CAPITAL INCREASE MORGAN INVESTED 162 MILLION OF ITS OWN AND ITS CLIENTS' MONEY IN A 79 STAKE IN THE BANK MR CONDE PLEDGED MOST OF HIS PERSONAL ASSETS IN RETURN FOR A SEVEN BILLIONPESETA LOAN FROM BANCO CENTRAL HISPANO THAT ENABLED HIM TO PARTICIPATE IN THE CAPITAL INCREASE BANESTO SHARES WERE LAST QUOTED ON THE MADRID STOCK EXCHANGE AT 1995 PESETAS ON DEC 28 THE DAY THE BANK OF SPAIN INTERVENED TO OUST MR CONDE AND HIS ENTIRE BOARD BECAUSE OF FEARS OF A RUN ON DEPOSITS THE SHARES ARE CURRENTLY CHANGING HANDS IN SMALL QUANTITIES OUTSIDE THE OFFICIAL MARKET AT PRICES AVERAGING 550 PESETAS THE 700 BILLIONPESETA SHORTFALL INCLUDES LOSSES FROM NONPERFORMING LOANS AND FROM THE BANK'S LEASING AND MORTGAGE UNITS AND FOREIGN INVESTMENTS AMONG OTHER THINGS HANGING OVER THE DEBATE IS SPAIN'S CREDIBILITY AS A FINANCIAL MARKETPLACE SPANISH AUTHORITIES ARE WORRIED ABOUT THE INVESTOR REACTION TO A REDUCTION IN THE VALUE OF BANESTO'S CAPITAL BUT BANKERS AND FINANCIAL ANALYSTS BELIEVE THAT A FAILURE TO MAKE SHAREHOLDERS PAY THE PRICE OF THE BANK'S MISMANAGEMENT COULD BE INTERPRETED AS A SIGN THAT SPAIN LACKS THE WILL OR THE ABILITY TO IMPOSE EFFECTIVE DISCIPLINE IN ITS FINANCIAL MARKETS ANY BAILOUT OPERATION IN A NATION'S BANKING SYSTEM POSES AN APPALLING DILEMMA IN TERMS OF THE FUTURE BEHAVIOR OF BANKS AND DEPOSITORS IN THAT IT UNDERMINES MARKET DISCIPLINE SAYS RICHARD DALE PROFESSOR OF INTERNATIONAL BANKING AT SOUTHAMPTON UNIVERSITY IN ENGLAND UNLESS SHAREHOLDERS ARE FORCED TO ACCEPT THEIR SHARE OF THE COST OF SUCH A BAILOUT HE OBSERVES YOU END UP UNDERMINING THE WHOLE CONCEPT OF RISK CAPITAL 9401190146 940119 CANADIAN BUILDING PERMITS UP OTTAWA CANADIAN MUNICIPALITIES IN NOVEMBER ISSUED BUILDING PERMITS VALUED AT A SEASONALLY ADJUSTED 214 BILLION CANADIAN DOLLARS US162 BILLION A 66 INCREASE FROM C201 BILLION IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER INCREASE FOLLOWED THREE CONSECUTIVE MONTHS OF DECLINE IN THE VALUE OF BUILDING AUTHORIZATIONS 9401190145 940119 DAW GETS 57 MILLION JOB SALT LAKE CITY DAW TECHNOLOGIES INC SAID IT RECEIVED A CONTRACT VALUED AT MORE THAN 57 MILLION TO BUILD A CLEANROOM FOR A SEMICONDUCTOR MANUFACTURER THE COMPANY WASN'T IDENTIFIED A CLEANROOM IS AN ULTRACLEAN ENVIRONMENTALLY CONTROLLED MANUFACTURING ROOM FREE OF EVEN THE SMALLEST PARTICLES FOR THE PRODUCTION OF HIGHLY SENSITIVE SEMICONDUCTORS DAW SAID IN A NEWS RELEASE THE COMPANY SAID THE NEW FACILITY WILL BE LOCATED IN COLORADO SPRINGS COLO 9401190144 940119 CRANE CO IS SEEKING MARK CONTROLS CORP FOR 566 MILLION STAMFORD CONN CRANE CO A MAKER OF INDUSTRIAL PRODUCTS FOR THE AEROSPACE AND CONSTRUCTION INDUSTRIES SAID IT WANTS TO ACQUIRE ILLINOISBASED MARK CONTROLS CORP FOR ABOUT 566 MILLION CRANE WHICH TWO WEEKS AGO DISCLOSED A 132 STAKE IN MARK CONTROLS SAID IT PLANS TO MEET WITH MANAGEMENT OF THE VALVE AND INSTRUMENT CONTROL MAKER TO DISCUSS A POSSIBLE 13ASHARE CASH OFFER FOR THE SHARES IT DOESN'T ALREADY OWN MARK CONTROLS HAS A LITTLE MORE THAN FIVE MILLION SHARES OUTSTANDING CRANE'S OFFER IS 35 HIGHER THAN A BID FROM AN INVESTOR GROUP REJECTED BY MARK CONTROLS LAST SPRING AND 46 HIGHER THAN ITS STOCK PRICE BEFORE CRANE ANNOUNCED ITS INITIAL STAKE NEWS OF THE MERGER OFFER HELPED PUSH MARK CONTROL'S STOCK UP 2625 A SHARE TO 13875 UP 23 IN NASDAQ STOCK MARKET TRADING ON MORE THAN 10 TIMES AVERAGE VOLUME TWO WEEKS AGO WILLIAM E BENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MARK CONTROLS SAID THE SKOKIE ILL INDUSTRIAL VALVE MANUFACTURER WAS NOT FOR SALE BUT YESTERDAY MR BENDIX SAID HE SPOKE BRIEFLY WITH CRANE'S CHAIRMAN AND CEO ROBERT S EVANS AND SCHEDULED A MEETING WITH CRANE EXECUTIVES FOR NEXT WEDNESDAY TWO DAYS BEFORE MARK CONTROL'S REGULARLY SCHEDULED BOARD MEETING NEXT FRIDAY CRANE SAID THAT IT MAY BE WILLING TO INCREASE ITS PRICE IF A HIGHER BID IS JUSTIFIED BY MARK CONTROL'S BUSINESS PLAN AND OTHER CONFIDENTIAL INFORMATION MR BENDIX SAID THE COMPANY HASN'T YET DECIDED WHETHER TO GIVE CRANE ACCESS TO THE CONFIDENTIAL INFORMATION IT REQUESTED IN 1992 MARK CONTROLS HAD NET INCOME OF 37 MILLION OR 73 CENTS A SHARE ON SALES OF 862 MILLION CRANE HAD 1992 PROFIT OF 243 MILLION OR 79 CENTS A SHARE INCLUDING A NONRECURRING CHARGE OF 394 MILLION ITS SALES WERE 13 BILLION 9401190143 940119 KANEB PIPE LINE PARTNERS LP DALLAS KANEB PIPE LINE PARTNERS LP SAID ITS ST SERVICES PARTNERSHIP ACQUIRED A TERMINAL FROM TOTAL PETROLEUM INC IN SALINA KAN TOTAL PETROLEUM INC IS A UNIT OF TOTAL PETROLEUM NORTH AMERICA LTD KANEB SAID THE TERMINAL HAS 65000 BARRELS OF STORAGE AND IS SUPPLIED BY KANEB PIPE LINE KANEB ALSO SAID ST SERVICES HAD PREVIOUSLY ACQUIRED A 70000BARREL TERMINAL FROM STAR ENTERPRISES IN MONTGOMERY ALA THE TWO TRANSACTIONS COST A COMBINED 25 MILLION KANEB SAID THE COMPANY SAID IT EXPECTS THE TERMINALS TO JOINTLY CONTRIBUTE 500000 OF CASH FLOW TO THE PARTNERSHIP ANNUALLY 9401190142 940119 MERGER OF 2 BANKS IS APPROVED SPRING VALLEY NY SAVINGS BANK OF ROCKLAND SAID ITS SHAREHOLDERS APPROVED A PROPOSED MERGER WITH FIRST FIDELITY BANK NEW YORK A UNIT OF FIRST FIDELITY BANCORP LAWRENCEVILLE NJ SAVINGS BANK OF ROCKLAND SHAREHOLDERS WILL RECEIVE 9 A SHARE FOR A TOTAL OF 59 MILLION PENDING CERTAIN REGULATORY APPROVALS THE MERGER SHOULD BE COMPLETED WITHIN A COUPLE OF MONTHS THE COMPANY SAID SAVINGS BANK OF ROCKLAND HAS ASSETS OF 185 MILLION FIRST FIDELITY HAS ASSETS OF 338 BILLION 9401190141 940119 SONY TO BUILD OREGON PLANT NEW YORK SONY CORP OF AMERICA A UNIT OF SONY CORP PLANS TO BUILD AN OPTICAL DISK MANUFACTURING CENTER IN SPRINGFIELD ORE THE 250000SQUAREFOOT FACILITY WILL MANUFACTURE A FULL LINE OF OPTICAL DISK PRODUCTS TO SERVE THE ENTERTAINMENT AND INFORMATION MARKETS SONY SAID THE INITIAL PHASE OF THE PROJECT WILL HAVE A CAPACITY OF THREE MILLION DISKS A MONTH AND WILL EMPLOY ABOUT 300 PEOPLE THE PLANT WHICH IS SCHEDULED TO OPEN IN THE SECOND HALF OF 1995 IS SONY'S FOURTH PRERECORDED SOFTWARE MEDIA MANUFACTURING FACILITY IN THE US THE COMPANY SAID 9401190140 940119 LEISURE & ARTS BUSINESS BOOKSHELF LOOKING FOR WORK IN THE INFORMATION AGE BY STANLEY W ANGRIST THE UNEMPLOYED ARE CERTAINLY A BOON TO PUBLISHING MY DESK AND FLOOR ARE HIDING UNDER 15 BOOKS ALL PUBLISHED WITHIN THE LAST FEW MONTHS ALL PROMISING TO SPEED YOUR DEPRESSING JOB SEARCH TO A HAPPY CONCLUSION JOBS '94 SIMON & SCHUSTER 683 PAGES 16 BY KATHRYN AND ROSS PETRASES PROMISES TO MAKE LOOKING FOR A JOB QUICK EASY AND EFFICIENT EFFICIENT CERTAINLY THERE'S A LOT OF WELLORGANIZED INFORMATION IN IT FOR EXAMPLE THERE'S A COMPLETE LIST OF ADDRESSES AND PHONE NUMBERS ORGANIZED BY OCCUPATION BROADCASTING FOR INSTANCE INCLUDES TOP TELEVISION NETWORKS AND STATION OWNERS CABLE NETWORKS AND INDUSTRY DIRECTORIES MORE DETAIL ON EACH PROSPECTIVE EMPLOYER IS PROVIDED IN THE ADAMS JOBS ALMANAC 1994 BOB ADAMS INC 916 PAGES 15 THAN IN THE PETRASES' BOOK IT PROVIDES ABOUT A 200WORD DESCRIPTION ON WHAT EACH OF HUNDREDS OF COMPANIES DO HOW MANY PEOPLE THEY EMPLOY AND IN SOME CASES THE PROJECTED NUMBER OF NEW HIRES FOR THE YEAR SUPPOSE YOU ARE LESS INTERESTED IN ADDRESSES PHONE NUMBERS AND GENERAL COMMENTS ABOUT THE OUTLOOK FOR VARIOUS EMPLOYMENT OPPORTUNITIES THAN IN METHODS LIKELY TO PRODUCE JOB OFFERS BOB GERBERG'S AN EASIER WAY TO CHANGE JOBS PRINCETON/MASTERS PRESS 336 PAGES 1495 OFFERS A PLAN HE CLAIMS HAS HAD A HIGH DEGREE OF SUCCESS ONE OF THE BOOK'S GOALS IS TO IMPROVE PEOPLE'S JOBSEARCHING TECHNIQUES MR GERBERG'S STATISTICS SHOW THAT CURRENTLY MOST PEOPLE GET NEW JOBS USING EXISTING PERSONAL CONTACTS AND DIRECT REFERRALS FROM THEM WHILE 22 USE OTHER NETWORKING TECHNIQUES A METHOD HE STRONGLY ADVOCATES FOR PEOPLE WHO COME TO PRINCETON/MASTERS THE CAREER MANAGEMENT AND OUTPLACEMENT FIRM HE WORKS FOR IS A CAREFULLY TARGETED DIRECTMAIL CAMPAIGN MR GERBERG SAYS THAT 29 OF HIS FIRM'S CLIENTS GET THEIR JOBS THAT WAY JOYCE KENNEDY AND THOMAS MORROW WANT TO CHANGE JOB HUNTING IN A DIFFERENT WAY THIS IS NOT A BOOK FOR CYBERPHOBES IN ELECTRONIC JOB SEARCH REVOLUTION WILEY 207 PAGES 2995 HARDBACK 1295 PAPERBACK THEY SHOW YOU HOW TO GET YOUR RESUME TO HUNDREDS OF POTENTIAL EMPLOYERS 24HOURS A DAY SEVEN DAYS A WEEK WITH LITTLE EFFORT AND LOW COST WHAT HAS BROUGHT ABOUT THIS REVOLUTION ARE THE SAME FACTORS THAT HAVE CAUSED SO MANY PEOPLE TO BE LAID OFF COST SAVINGS THE AUTHORS STATE THAT IT COSTS AN EMPLOYER ON AVERAGE 5400 TO HIRE A PROFESSIONAL OR MANAGERIAL PERSON AND 35300 IF A PRIVATE RECRUITING FIRM IS USED BUT IF THE SEARCH IS CARRIED OUT ELECTRONICALLY COSTS DROP TO A FRACTION OF THOSE NUMBERS IT BECOMES EASY FOR AN EMPLOYER TO HAVE A JOB DATABASE FIRM SEARCH THOUSANDS OF RESUMES LOOKING FOR JUST THE RIGHT PERSONA LEFTHANDED VIOLINIST WHO SPEAKS PORTUGUESE AND WANTS TO LIVE IN OMAHA THE BOOK DESCRIBES THE COSTS AND HOW TO FILE YOUR RESUME WITH A NUMBER OF DATABASES IN THEIR COMPANION BOOK ELECTRONIC RESUME REVOLUTION WILEY 233 PAGES 2995 HARDBACK 1295 PAPERBACK MS KENNEDY AND MR MORROW CLAIM RESUMES HAVE TO BE WRITTEN IN A DIFFERENT STYLE WHEN THEY ARE BEING PREPARED TO BE READ BY A COMPUTER FOR INSTANCE IF YOU ARE LOOKING FOR WORK AS AN ACCOUNTANT INSERT BUZZWORDS LIKE COST ACCOUNTING REVENUE ACCOUNTING CPA LEADERSHIP ETC TO CATCH THE COMPUTER'S ELECTRONIC EYE AS OFTEN AS POSSIBLE BUT SUPPOSE YOU'VE HAD IT IN WORKING FOR OTHERS AND WOULD LIKE TO TRY TO MAKE YOUR LIVING WITHOUT A BOSS BY TRADING THE MARKETS TRADERS ARE THEIR OWN BOSSES HAVE UNLIMITED EARNING POTENTIAL AND THEY CAN TAKE TIME OFF ANY TIME THEY LIKE BEFORE YOU ARE COMPLETELY SEDUCED BY THOSE ARGUMENTS PICK UP TWO BOOKS BY ALEXANDER ELDER TRADING FOR A LIVING WILEY 289 PAGES 4995 AND STUDY GUIDE FOR TRADING FOR A LIVING WILEY 194 PAGES 2795 NOW A PROFESSIONAL TRADER AND PRACTICING PSYCHIATRIST DR ELDER JUMPED OFF A SOVIET SHIP IN ABIDJAN IVORY COAST IN 1974 AND WAS GRANTED POLITICAL ASYLUM IN THE US HIS BOOK WHICH EXPLORES BOTH THE PSYCHOLOGICAL AND TECHNICAL ASPECTS OF TRADING IS DESIGNED TO TEST A PERSON'S EMOTIONAL AND PSYCHOLOGICAL MAKEUP FOR THE TRADING LIFE SOME OF THE PSYCHOLOGICAL STRATEGIES HE PROPOSES HAVE THEIR ROOTS IN THE 12 STEPS OF ALCOHOLICS ANONYMOUS MOST OF THE BOOK IS DEVOTED TO EXPLAINING A LARGE NUMBER OF TECHNICAL TRADING TOOLS SOME DEVELOPED BY DR ELDER THAT MAY BE USEFUL IN TRADING STOCKS OPTIONS AND FUTURES THE BOOK'S MOST ENTERTAINING ASPECT ARE QUESTIONS DESIGNED TO SEE HOW WELL YOU'VE ABSORBED YOUR LESSONS HERE'S ONE IT WILL HELP YOU TO UNDERSTAND WHAT HAPPENS IN THE MARKET IF YOU THINK OF THE MARKETPLACE AS A A NUMBER OF RATIONAL INDIVIDUALS ACTING TO MAXIMIZE THEIR GAINS B A CROWD WHOSE MEMBERS TRY TO PICK EACH OTHER'S POCKETS WHILE BEING SWAYED BY WAVES OF GREED AND FEAR C A CONSTANT FLOW OF DATA A MIX OF USEFUL INFORMATION AND CHAOS D A CARNIVAL PACKED WITH DRUNKS OFFERING MONEY TO STRANGERS 9401190139 940119 BUSINESS BRIEF WARNACO GROUP IS TO PAY 64 MILLION FOR RIGHTS TO CALVIN KLEIN TRADEMARKS NEW YORK WARNACO GROUP INC SNARED ONE OF THE BESTKNOWN NAMES IN RETAILING AGREEING TO ACQUIRE THE PROFITABLE UNDERWEAR BUSINESS OF CALVIN KLEIN INC AND THE RIGHTS TO PRODUCE OTHER MERCHANDISE UNDER THE DESIGNER'S NAME IT IS THE FIRST TIME THE DESIGNER HAS SOLD HIS TRADEMARK OUTRIGHT EVEN SO THE DEAL GIVES MR KLEIN GLOBAL REACH THROUGH WARNACO THE FASTGROWING COMPANY THAT MAKES APPAREL UNDER SUCH BRAND NAMES AS HATHAWAY CHRISTIAN DIOR AND CHAPS BY RALPH LAUREN WARNACO SAID IT WILL PAY THE CLOSELY HELD COMPANY 64 MILLION FOR THE CALVIN KLEIN INC WORLDWIDE TRADEMARKS AND BUSINESSES IN MEN'S UNDERWEAR AFTER THE INITIAL PAYMENT MR KLEIN WILL RECEIVE AN ONGOING FEE STARTING IN THE THIRD YEAR BASED ON A PERCENTAGE OF TOTAL SALES THE TRANSACTION SEVERAL MONTHS IN THE MAKING WAS GUIDED PARTLY BY DAVID GEFFEN THE HOLLYWOOD RECORD AND MOVIE MOGUL WHO IS A LONGTIME FRIEND OF MR KLEIN CALVIN KLEIN INC EXECUTIVES SAID CASH FROM THE SALE WOULD ALLOW IT TO PAY OFF OUTSTANDING DEBT INCLUDING A 58 MILLION LOAN THE COMPANY RECEIVED FROM CITIBANK NA LAST YEAR MR KLEIN USED THE LOAN TO BUY BACK JUNKBOND DEBT FROM MR GEFFEN WHO HAD PURCHASED IT TO HELP THE DESIGNER THROUGH FINANCIAL DIFFICULTIES WHILE RETAIL SALES OF CALVIN KLEIN MEN'S UNDERWEAR AT ABOUT 130 MILLION ANNUALLY ARE A SLIVER OF THE ESTIMATED 16 BILLION IN MEN'S UNDERWEAR SALES IN THE US THE BRAND MADE POPULAR BY SEXY ADS IS SAID TO HAVE UNUSUALLY STRONG PROFIT MARGINS LINDA J WACHNER WARNACO'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE DEAL CALLS FOR HER COMPANY TO LICENSE THE TRADEMARKS FOR CALVIN KLEIN'S MEN'S ACCESSORIES WORLDWIDE WARNACO WILL ALSO ACQUIRE WORLDWIDE TRADEMARKS FOR CALVIN KLEIN'S WOMEN'S UNDERWEAR AND INTIMATE APPAREL WHEN THE US LICENSE EXPIRES AT THE END OF THIS YEAR THE WARNACO DEAL IS THE LATEST STEP IN THE GOAL OF MR KLEIN AND PARTNERCHAIRMAN BARRY SCHWARTZ OF TURNING CALVIN KLEIN INC FROM A MANUFACTURER INTO A PURE LICENSING BUSINESS WITH THE EXCEPTION OF MR KLEIN'S HIGHFASHION COLLECTIONS WARNACO HAS ABILITY TO MARKET AND MANUFACTURE THE PRODUCT GLOBALLY AND THIS IS THE TIME FOR ME TO DO THAT SAID MR KLEIN YESTERDAY IN AN INTERVIEW SOME ANALYSTS QUESTIONED WHETHER WARNACO PAID TOO MUCH BUT MS WACHNER SAID THIS IS GOING TO BE MORE THAN ADDITIVE TO OUR EARNINGS 9401190138 940119 INTERNATIONAL ICI SELLS INDIAN FERTILIZER UNIT LONDON IMPERIAL CHEMICAL INDUSTRIES PLC SAID IT SOLD ITS INDIAN FERTILIZER UNIT FOR 25 MILLION 373 MILLION GP GOENKA GROUP OF COS AGREED TO BUY THE DIVISION WHICH IS A UNIT OF ICI INDIA ADDITIONALLY ICI INDIA WILL RECEIVE ABOUT 20 MILLION IN OUTSTANDING SUBSIDY PAYMENTS FROM THE GOVERNMENT OF INDIA THE MONEY WILL BE PAID OVER THE NEXT NINE TO 12 MONTHS ICI SAID THE SALE IS PART OF THE BRITISH CHEMICAL COMPANY'S STRATEGY TO RESTRUCTURE ITS REGIONAL OPERATIONS 9401190137 940119 FINANCING BUSINESS DEVELOPERS DIVERSIFIED REALTY CORP DEVELOPERS DIVERSIFIED REALTY CORP CLEVELAND SAID ITS BOARD PLANS TO INCREASE THE 1994 ANNUAL DIVIDEND BY 20 TO 192 A SHARE OR 48 CENTS A SHARE QUARTERLY THE COMPANY'S MOST RECENT QUARTERLY DIVIDEND WAS 40 CENTS A SHARE PAID ON MONDAY THE REALESTATE INVESTMENT TRUST SAID THE PLANNED INCREASE REFLECTS THE DYNAMIC GROWTH THAT IT HAS EXPERIENCED SINCE IT WENT PUBLIC LAST FEBRUARY 9401190136 940119 CORRECTIONS & AMPLIFICATIONS BRISTOLMYERS SQUIBB CO MARKETS THE HYPERTENSION DRUG CAPTOPRIL THE DRUG'S MARKETER WAS INCORRECTLY IDENTIFIED AS MERCK & CO IN A CHART ACCOMPANYING AN ARTICLE YESTERDAY ABOUT FOURTHQUARTER EARNINGS ESTIMATES FOR PHARMACEUTICAL COMPANIES 9401190135 940119 TECHNOLOGY & ENVIRONMENT HEART RESEARCHER QUESTIONS TREATMENT BY FAMILY DOCTORS SPECIALISTS' CONCERNS SURFACE AMID HEALTH REFORM TILT TO GENERAL PRACTITIONERS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL CLEARWATER BEACH FLA A UNIVERSITY OF COLORADO HEART DOCTOR SAID PATIENTS WITH CONGESTIVE HEART FAILURE MAY NOT BE GETTING THE RIGHT MEDICINE FROM THEIR FAMILY DOCTORS MICHAEL R BRISTOW A TOP RESEARCHER WHO HAS RUN SEVERAL DRUGCOMPANYSPONSORED HUMAN TRIALS OF EXPERIMENTAL HEART MEDICINES SAID DRUGINDUSTRY MARKETING SURVEYS SHOW THAT JUST 20 TO 50 OF HEARTFAILURE PATIENTS ARE PRESCRIBED DRUGS CALLED ACEINHIBITORS DESPITE SEVERAL MAJOR STUDIES THAT SHOW THE MEDICATIONS ARE THE MOST EFFECTIVE AVAILABLE TREATMENT FOR THE SYNDROME THE NUMBER SHOULD BE 90 DR BRISTOW MAINTAINED BUT THE MAJORITY OF HEARTFAILURE PATIENTS ARE MANAGED BY FAMILY PRACTITIONERS AND INTERNISTS AND FOR WHATEVER REASON THE MESSAGE ISN'T GETTING OUT DR BRISTOW'S COMMENTS MADE AT A SCIENCE WRITERS MEETING HERE SPONSORED BY THE AMERICAN HEART ASSOCIATION REFLECT CONCERNS AMONG SPECIALTY PHYSICIANS AS BOTH PRIVATESECTOR COSTCONTAINMENT STRATEGIES AND THE DRIVE FOR NATIONAL HEALTHCARE REFORM CALL FOR MORE AND MORE CARE TO BE MANAGED BY GENERAL PRACTITIONERS MANY DOCTORS CONTINUE TO USE DIURETICS RATHER THAN ACEINHIBITORS AS FIRSTLINE TREATMENT FOR ROUTINE CONGESTIVE HEART FAILURE DOCTORS SAY A VARIETY OF FACTORS RANGING FROM KNOWLEDGE OF THE ILLNESS FAMILIARITY WITH THE MEDICINES TO WORRIES OVER WHETHER PATIENTS CAN AFFORD THEM MAY INFLUENCE PRESCRIBING DECISIONS CONGESTIVE HEART FAILURES A CHRONIC WEAKENING OF THE HEART'S ABILITY TO PUMP BLOOD THROUGH THE BODY COST 40 BILLION TO 50 BILLION A YEAR OR MORE THAN 6 OF TOTAL US HEALTHCARE EXPENDITURES DR BRISTOW SAID DR BRISTOW SAID A CONGESTIVE HEART FAILURE PATIENT SEEING A CARDIOLOGIST IS TWICE AS LIKELY TO GET ACEINHIBITORS AS THOSE SEEING FAMILY DOCTORS JAMES H MOLLER PRESIDENT OF THE HEART ASSOCIATION SAID THE DISCREPANCIES REFLECT A NEED FOR MEDICAL SCHOOLS AND GROUPS SUCH AS HIS TO IMPROVE TRAINING AND EDUCATION OF MEDICAL STUDENTS AND PRACTICING GENERAL DOCTORS BUT WILLIAM COLEMAN PRESIDENT OF THE AMERICAN ACADEMY OF FAMILY PHYSICIANS AND A DOCTOR IN SCOTTSBORO ALA SAID CONGESTIVE HEART FAILURE IS AMONG A BASIC SET OF MEDICAL PROBLEMS THAT ALL PRIMARYCARE DOCTORS ARE TRAINED TO TREAT WELL IT ISN'T NECESSARY TO ELEVATE THE ILLNESS TO ONE ONLY SUPERSPECIALISTS CAN TREAT HE ADDED 9401190134 940119 FINANCING BUSINESS FEDERALMOGUL CORP FEDERALMOGUL CORP A SOUTHFIELD MICH SUPPLIER OF AUTO PARTS SAID IT PLANS TO OFFER FOUR MILLION SHARES OF ITS COMMON STOCK PROCEEDS FROM THE SALE WILL BE USED TO REPAY DEBT THE UNDERWRITERS MAY ISSUE AN ADDITIONAL 600000 SHARES IF THEY EXERCISE THEIR OVERALLOTMENT OPTION ABOUT 34 MILLION SHARES WILL BE SOLD IN THE US WITH THE REMAINDER TO BE SOLD OUTSIDE THE US MANAGERS OF THE PROPOSED OFFERING IN THE US ARE CS FIRST BOSTON AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9401190133 940119 WHO'S NEWS INTERNATIONAL ABSORBENTS INC INTERNATIONAL ABSORBENTS INC VANCOUVER BRITISH COLUMBIA THIS ENVIRONMENTAL CLEANUP COMPANY NAMED DARRYL F JONES 40 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER MR JONES WHO IS CURRENTLY VICE PRESIDENT FINANCE CHIEF FINANCIAL OFFICER AND SECRETARY SUCCEEDS GORDON L ELLIS 46 THE COMPANY SAID MR ELLIS RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE BUT WILL REMAIN CHAIRMAN IT SAID MR JONES WILL CONTINUE AS ITS CHIEF FINANCIAL OFFICER ON AN INTERIM BASIS 9401190132 940119 HEARD ON THE STREET BELL ATLANTIC GETS BYEBYE NOT BUYBUY BY SUSAN PULLIAM AND LESLIE CAULEY STAFF REPORTERS OF THE WALL STREET JOURNAL BELL ATLANTIC'S SHARES HAVE PLUNGED 21 SINCE THE COMPANY ANNOUNCED PLANS TO ACQUIRE TELECOMMUNICATIONS IN A STOCK SWAP SO DOES THIS MEAN BELL ATLANTIC'S SHARES ARE FINALLY A BUY NOT SO FAST WALL STREET SAVANTS ARE CONVINCED THAT BELL ATLANTIC IS ABOUT TO RESTRUCTURE ITS AGREEMENT WITH TCI TO MAKE IT MORE FAVORABLE TO SHAREHOLDERS OF TCI SPECULATION IS ALL OVER THE MAP THERE MIGHT BE AN INCREASE IN THE NUMBER OF BELL ATLANTIC SHARES ISSUED TO TCI HOLDERS AS PART OF THE DEAL SOME BELIEVE OTHERS HAVE BEEN WONDERING IF BELL ATLANTIC MIGHT EVEN CUT ITS DIVIDEND AS A WAY OF LEAVING MORE OF THE PIE FOR TCI HOLDERS IN ANY CASE THE THEORY GOES A RESTRUCTURING WOULD CAUSE BELL ATLANTIC'S SHARES TO TAKE A FALL BUT WHILE WALL STREET WHISPERS BELL ATLANTIC'S CHIEF EXECUTIVE RAYMOND SMITH STRONGLY DENIES MOST OF THE RUMBLINGS THAT TRADERS ARE CHASING WHILE HE SAID IN AN INTERVIEW THAT HE IS MYSTIFIED AT THE DECLINE IN BELL ATLANTIC SHARES SINCE THE DEAL WAS ANNOUNCED HE REITERATED THAT THE COMPANY ISN'T CUTTING THE DIVIDEND AND HASN'T CONSIDERED IT THAT'S NOT GOING TO HAPPEN SAYS MR SMITH WHO MADE RETAINING THE 286ASHARE ANNUAL DIVIDEND FOR AT LEAST FIVE YEARS A CENTRAL PLEDGE WHEN HE ANNOUNCED THE TCI DEAL I'LL DO ALL KINDS OF CRAZY THINGS BUT I'M NOT CUTTING THE DIVIDEND I'D CUT MY THROAT FIRST THE BELL ATLANTIC CHAIRMAN SAID HE ADDED THAT THE STOCK'S SLIDE HAS PROVIDED A BUYING OPPORTUNITY AND THAT HIS FAMILY IS TAKING ADVANTAGE OF IT BELL ATLANTIC CLOSED AT 54 5/8 UP 7/8 TCI'S CLASS A SHARES WERE UNCHANGED AT 26 7/8 HE FURTHER MAINTAINED THAT DESPITE THE DECLINE IN BELL ATLANTIC SHARES SINCE THE NEWS OF THE PLANNED TCI ACQUISITION THERE AREN'T ANY PLANS TO RESTRUCTURE THE DEAL IN ANY WAY AND HE DIRECTLY RULED OUT THE POSSIBILITY THAT THE REGIONAL BELL COMPANY WOULD ISSUE AN EXTRA BATCH OF SHARES TO SWEETEN THE TERMS OF THE TCI DEAL MR SMITH SAID BELL ATLANTIC HAS NO PLANS TO RESTRUCTURE THE DEAL IN ANY MANNER STILL SAVVY INVESTORS ON WALL STREET THINK SOMETHING IS UP AND THEY ARE PLACING BIG BETS THAT ANY RESTRUCTURING OF THE DEAL WOULD BOOST TCI'S STOCK PRICE WE'RE BUYING TCI BECAUSE WE THINK THE TERMS OF A NEW DEAL WILL BE FAVORABLE TO TCI SHAREHOLDERS SAYS JAMES ENGLE A PORTFOLIO MANAGER AT WOOD STRUTHERS & WINTHROP A UNIT OF DONALDSON LUFKIN & JENRETTE TALK ABOUT A RESTRUCTURING OF THE ACQUISITION AGREEMENT MAY BE ONLY WISHFUL THINKING ON THE PART OF TCI HOLDERS INDEED THE VALUE OF THE SHARES IN THE COMBINED COMPANY THAT THEY WOULD RECEIVE UNDER THE ACCORD HAS SUNK ALONG WITH BELL ATLANTIC'S STOCK PRICE SINCE THE DEAL WAS ANNOUNCED BELL ATLANTIC'S SHARES TRADED AT 69 1/8 AROUND THE TIME OF THE MIDOCTOBER ANNOUNCEMENT THEN ZIGZAGGED DOWNWARD HITTING A LOW OF 53 1/2 IN RECENT WEEKS SOME INVESTORS ARE CONVINCED THAT TCI'S CHIEF EXECUTIVE JOHN MALONE HAS BEEN PRESSURING MR SMITH FOR A DIVIDEND CUT OF AT LEAST 50 WHY WOULD A MAN WHO WOULD BE A BIG HOLDER OF BELL ATLANTIC WANT A LOWER DIVIDEND BECAUSE MR MALONE AND TCI SHAREHOLDERS WOULD RECEIVE A NEW CLASS OF STOCK IN THE ACQUISITION AND THAT NEW STOCK DOESN'T PAY A DIVIDEND FOR FIVE YEARS BECAUSE MR MALONE WITH HIS PARTNER TCI FOUNDER ROBERT MAGNESS HOLDS WHAT AMOUNTS TO VOTING CONTROL OF TCI AND ITS LIBERTY MEDIA SPINOFF WHAT HE DEMANDS IN THIS NEGOTIATION WILL BE PARAMOUNT BUT BELL ATLANTIC'S MR SMITH MAINTAINED YESTERDAY THAT WHILE HE IS IN TOUCH WITH MR MALONE EVERY OTHER DAY ON THE MERGER THE NOTION OF RESTRUCTURING THE DEAL SIMPLY HASN'T COME UP A CUT IN THE DIVIDEND OF THE EXISTING BELL ATLANTIC SHARES WOULD MEAN THE NEW CLASS OF STOCK WOULD HAVE A HIGHER VALUE BELL ATLANTIC'S ANNUAL DIVIDEND RATE EQUALS 49 OF YESTERDAY'S STOCK PRICE AN ABOVEMARKET LEVEL THAT APPEALS TO MANY SMALL INVESTORS AT THE VERY LEAST INVESTORS BELIEVE BELL ATLANTIC WILL BE FORCED TO MAKE SOME IMPROVEMENT TO THE AGREEMENT BECAUSE THE VALUE OF THEIR CHUNK OF THE NEW COMPANY HAS FALLEN SO FAR IT WAS OBVIOUS TO ME THAT THEY WOULD RESTRUCTURE THE DEAL AFTER THE FIRST DEADLINE PASSED FOR A DEFINITIVE AGREEMENT ON DEC 15 ONE LARGE INVESTOR SAID YESTERDAY I DON'T THINK THEY WILL CUT THE DIVIDEND THOUGH MALONE WANTS THEM DO THAT TCI DECLINED TO COMMENT THE RUMBLINGS AMONG INVESTORS ARE AN EXAMPLE OF THE INCREASING PRESSURE MR SMITH WILL FACE AS HE TRIES TO KEEP TWO CAMPS HAPPY IN HIS NEW SHAREHOLDER BASE ON THE ONE HAND HE MUST CONSIDER HIS TRADITIONAL SHAREHOLDERS MADE UP OF A LARGE NUMBER OF SMALL INVESTORS WHO OWN THE STOCK CHIEFLY FOR ITS DIVIDEND YIELD WHEN THE PURCHASE GOES THROUGH HOWEVER HE ALSO WILL FACE THE TASK OF KEEPING TCI SHAREHOLDERS SATISFIED AND THEY ARE LIKELY TO DEMAND GROWTH RATHER THAN PREDICTABLE DIVIDENDS FROM THE COMPANY INDEED BELL ATLANTIC'S STOCK HAS FALLEN SINCE THE DEAL WAS ANNOUNCED IN PART BECAUSE ITS TRADITIONAL INVESTORS HAVE RUSHED FOR THE EXITS PART OF THEIR CONCERN WAS THAT DESPITE ASSURANCES OTHERWISE BELL ATLANTIC'S DIVIDEND MIGHT BE CUT TALK OF A DIVIDEND CUT HEATED UP LATE LAST WEEK AFTER A COMPANY EXECUTIVE SPOKE TO ANALYSTS YESTERDAY MICHAEL ELLING AN ANALYST AT OPPENHEIMER & CO SAID IN COMMENTS TO THE FIRM'S CLIENTS THAT HE BELIEVES IT'S WORTH CONSIDERING SELLING BELL ATLANTIC BECAUSE OF THE POSSIBILITY OF A DIVIDEND CUT AND SWAPPING INTO LONGDISTANCE COMPANIES INSTEAD A GROWING NUMBER OF INSTITUTIONAL INVESTORS BELIEVE BELL ATLANTIC WILL CHOOSE A DIFFERENT ROUTE HOWEVER WOOD STRUTHERS' MR ENGLE IS FATTENING THE PORTFOLIO'S TCI HOLDINGS BASED ON HIS BET THAT BELL ATLANTIC WILL ADD TO THE NUMBER OF SHARES THAT GO TO TCI HOLDERS AS PART OF THE ACCORD IF THE DEAL IS RESTRUCTURED AS HE EXPECTS HE PREDICTS TCI STOCK WILL JUMP TO 35 OR EVEN HIGHER BELL ATLANTIC AND TCI HAVE SET A JAN 31 DEADLINE FOR A FINAL AGREEMENT UNDER THE TERMS OF THE INITIAL AGREEMENT IN OCTOBER TCI SHAREHOLDERS WERE TO RECEIVE ROUGHLY 39 OF THE NEW ENTITY OR ABOUT 279 MILLION SHARES OF THE NEW COMPANY SAYS MR ENGLE BECAUSE THE VALUE OF THEIR PROSPECTIVE INTEREST IN THE COMPANY HOWEVER HAS SUNK SOME INVESTORS BELIEVE BELL ATLANTIC WILL BE FORCED TO COME UP WITH A NEW FORMULA THAT WILL GIVE TCI HOLDERS A LARGER STAKE IN THE COMBINED COMPANY 9401190131 940119 CYGNUS'S SUIT AGAINST ALZA REDWOOD CITY CALIF CYGNUS THERAPEUTIC SYSTEMS SAID IT FILED SUIT IN FEDERAL COURT IN SAN FRANCISCO AGAINST ALZA CORP ALLEGING ANTITRUST VIOLATIONS AND PATENT FRAUD THE ALLEGATIONS INVOLVE A SKIN PATCH THAT DELIVERS FENTANYL A PAIN KILLER BOTH COMPANIES HAVE DEVELOPED OR ARE DEVELOPING VERSIONS OF THIS PATCH CYGNUS ALLEGES THAT ALZA USED VARIOUS MISREPRESENTATIONS TO OBTAIN A PATENT FOR ITS PATCH IN 1986 AND THEREBY STIFLED COMPETITION A SPOKESWOMAN FOR ALZA BASED IN PALO ALTO CALIF SAID THE COMPANY HAD NO KNOWLEDGE OF THE SUIT 9401190130 940119 TEXAS BANK FIRM AND FDIC AGREE ON INITIAL PAYMENT BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON FIRST CITY BANCORP OF TEXAS INC SAID THE FEDERAL DEPOSIT INSURANCE CORP AGREED TO MAKE AN INITIAL DISTRIBUTION OF 200 MILLION IN CASH AND ASSETS TO THE COMPANY AS PART OF A SETTLEMENT OF LITIGATION OVER THE SEIZURE OF ITS BANKS FIRST CITY ESTIMATED THAT IT WILL RECEIVE FROM THE FDIC AN ADDITIONAL AMOUNT BRINGING THE TOTAL PAID TO BETWEEN 275 MILLION AND 375 MILLION AN ESTIMATE THE FDIC WOULDN'T CONFIRM THE FINAL AMOUNT WILL DEPEND ON HOW MUCH THE REMAINING FIRST CITY ASSETS SELL FOR AND THE FDIC'S EXPENSES IN SELLING THEM THE COMPANY SAID THE 200 MILLION INITIAL PAYMENT WILL BE 107 MILLION IN CASH AND 93 MILLION IN PROPERTY AND NOTES RECEIVABLE AND WILL MORE THAN COVER THE 80 MILLION TO 120 MILLION IT NEEDS TO FULLY REPAY CREDITORS AND EMERGE FROM BANKRUPTCYLAW PROTECTION FIRST CITY SUED THE FDIC IN SEPTEMBER ALLEGING THAT FEDERAL REGULATORS UNJUSTLY SEIZED THE FIRM'S 20 BANKS IN 1992 WHILE IT WAS TRYING TO RECAPITALIZE ITSELF WITH PRIVATE FUNDS BONDHOLDERS FORCED FIRST CITY INTO BANKRUPTCYLAW PROCEEDINGS A FEW DAYS AFTER THE SEIZURE AT THE TIME THE FDIC ESTIMATED FIRST CITY WOULD COST ITS INSURANCE FUND 500 MILLION BUT AFTER SELLING THE BANKS AND SOME OTHER ASSETS THE FDIC ESTIMATED IT WOULD BE LEFT WITH A 60 MILLION SURPLUS TO BE RETURNED TO THE COMPANY FIRST CITY ON THE OTHER HAND SAID ITS ESTIMATES OF THE SURPLUS OWED WERE MUCH HIGHER BETWEEN 450 MILLION AND 500 MILLION THE DISPARITY LARGELY REVOLVED AROUND PRICES THAT ASSETS IN RECEIVERSHIP WILL EVENTUALLY BRING TRADERS IN FIRST CITY'S THINLY TRADED STOCK AND DEBT SAID THE MARKET VALUED THE ANTICIPATED SETTLEMENT AT ABOUT 300 MILLION LAST MONTH FIRST CITY AND THE FDIC AGREED TO AN OUTLINE OF THE SETTLEMENT INCLUDING THE TWOSTAGE DISTRIBUTION PLAN NO ESTIMATES OF THE SIZE OF DISTRIBUTIONS WERE MADE THEN EXCEPT THAT BOTH SIDES AGREED ALL DEPOSITORS AND CREDITORS WOULD BE REPAID IN FULL AND THAT THE BANK INSURANCE FUND WOULD SUFFER NO LOSS FIRST CITY SAID A TERM SHEET OF THE SETTLEMENT HAS BEEN APPROVED BY ITS BOARD AND THE FDIC BOARD A FINAL SETTLEMENT IS STILL SUBJECT TO DUE DILIGENCE NEGOTIATING AND SIGNING A DEFINITIVE AGREEMENT AS WELL AS BANKRUPTCYCOURT APPROVAL ROBERT BROWN FIRST CITY PRESIDENT SAID A REJUVENATED FIRST CITY IS LIKELY TO BECOME A FINANCIALSERVICES COMPANY AND IS CONSIDERING ALL OPTIONS FOR BUSINESS INCLUDING BANKING 9401190129 940119 TECHNOLOGY & ENVIRONMENT NEW SILICON CELL CAN HALVE COST OF SOLAR ENERGY BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENERGY DEPARTMENT SAID A COOPERATIVE RESEARCH PROGRAM WITH ENERGY CONVERSION DEVICES INC AND CANON INC PRODUCED A NEW SOLAR CELL THAT CAN HALVE THE COST OF SOLAR ENERGY FOR THE HOME THE NEW SOLAR OR PHOTOVOLTAIC CELL IS AN ULTRATHIN SHEET OF SILICON ALLOY THAT CONVERTS SUNLIGHT DIRECTLY INTO ELECTRICITY THE ENERGY DEPARTMENT SAID THAT IF THE NEW MATERIAL WERE INCORPORATED INTO ROOFING SHINGLES OF A SOUTHFACING HOME IT COULD SUPPLY THE HOME WITH ELECTRICITY DURING THE DAY WHEN THE SUN IS SHINING AT A COST OF 16 CENTS PER KILOWATTHOUR THE COST COULD EVENTUALLY DROP TO 12 CENTS IT SAID ELECTRICITY FROM CONVENTIONAL PHOTOVOLTAIC CELLS CURRENTLY COSTS 25 CENTS TO 50 CENTS PER KILOWATTHOUR IT SAID DURING A STANDARD 1000HOURLONG TEST THE NEW PHOTOVOLTAIC CELL CONVERTED SUNLIGHT DIRECTLY INTO ELECTRICITY WITH AN EFFICIENCY OF 102 ACCORDING TO UNITED SOLAR SYSTEMS CORP THE JOINT VENTURE OF ENERGY CONVERSION DEVICES OF TROY MICH AND CANON THE BIG JAPANESE MAKER OF COPYING MACHINES THIS STABLE 102 EFFICIENCY IS A RECORD FOR AN AMORPHOUS SILICON SOLAR CELL THE COMPANY SAID HIGHER CONVERSION EFFICIENCIES HAVE BEEN ACHIEVED BY SOLAR CELLS MADE WITH CRYSTALLINE SILICON OR OTHER CRYSTALLINE MATERIALS BUT THESE MATERIALS ARE MORE EXPENSIVE THAN THE AMORPHOUS MATERIAL UNLIKE CRYSTALLINE SOLAR CELL MATERIALS WHICH MUST BE PRODUCED IN BATCHES THE AMORPHOUS SILICON ALLOYS ORIGINALLY DEVELOPED BY ENERGY CONVERSION DEVICES CAN BE PRODUCED IN A CONTINUOUS SHEET UNITED SOLAR SYSTEMS IS BUILDING A 30 MILLION PLANT FINANCED LARGELY BY CANON IN NEWPORT NEWS VA TO PRODUCE THE NEW AMORPHOUS SILICON ALLOY BEGINNING IN 1995 SHEETS OF THE ALLOY CAN BE FABRICATED INTO ROOF PANELS BATTERYCHARGING PANELS WALLCOATINGS FOR COMMERCIAL BUILDINGS OR ANY OF A HOST OF OTHER DEVICES THE NEW MATERIAL WHICH IS MUCH THINNER AND CONSEQUENTLY CHEAPER THAN PREVIOUS AMORPHOUS SILICON PHOTOVOLTAIC MATERIALS WAS DEVELOPED UNDER A THREEYEAR 63 MILLION COSTSHARING PROGRAM BETWEEN UNITED SOLAR SYSTEMS AND THE ENERGY DEPARTMENT'S NATIONAL RENEWABLE ENERGY LABORATORY THE COMPANY CREDITED A TEAM LED BY SUBHENDU GHUA VICE PRESIDENT OF RESEARCH AND TECHNOLOGY WITH DEVELOPING THE NEW MATERIAL BUT IT ALSO REPRESENTS A TRIUMPH FOR STANFORD OVSHINSKY THE FOUNDER AND CHIEF EXECUTIVE OFFICER OF ENERGY CONVERSION DEVICES MR OVSHINKSY PIONEERED THE DEVELOPMENT OF AMORPHOUS SILICON AS AN ELECTRONIC MATERIAL FOR SEVERAL YEARS HIS ASSERTIONS THAT HE COULD MAKE CHEAP PHOTOVOLTAIC CELLS IN VOLUME USING AMORPHOUS SILICON ALLOYS HAVE MET WITH CONSIDERABLE SKEPTICISM 9401190128 940119 DOCTORS DECLARE CLINTON TO BE IN EXCELLENT HEALTH WASHINGTON PRESIDENT CLINTON WAS PRONOUNCED TO BE IN EXCELLENT HEALTH AFTER A PHYSICAL EXAMINATION AT BETHESDA NAVAL HOSPITAL THE WHITE HOUSE SAID MR CLINTON WHO IS 6 FEET 2 1/2 INCHES TALL WEIGHED IN AT 210 POUNDS 16 POUNDS LIGHTER THAN AT HIS LAST PHYSICAL IN SEPTEMBER 1992 HIS BLOOD PRESSURE WAS UP A BIT TO 132/74 FROM 118/70 BUT STILL WITHIN A HEALTHY RANGE THE PRESIDENT'S CHOLESTEROL LEVEL WAS 204 A LITTLE OVER THE 200 GUIDELINE AND UP FROM 184 AT THE 1992 PHYSICAL ALL OTHER BLOOD TESTS WERE SAID TO BE NORMAL MR CLINTON WAS ADVISED TO CONTINUE HIS ALLERGY DESENSITIZATION INJECTIONS AMONG THE TESTS CONDUCTED WERE CHEST XRAY HEARING TEST EYE EXAMINATION ELECTROCARDIOGRAM TREADMILL TEST ALLERGY EXAMINATION DERMATOLOGY EXAMINATION AND BLOOD ANALYSIS 9401190127 940119 TRUMP CHANGES HIS MIND ON BUYING ALADDIN CASINO NEW YORK NEW JERSEY CASINO OWNER DONALD TRUMP SAID HE HAS CHANGED HIS MIND ABOUT EXPANDING INTO LAS VEGAS BY ACQUIRING THE ALADDIN HOTEL & CASINO MR TRUMP WHO WAS SAID LESS THAN TWO WEEKS AGO TO BE NEAR AN AGREEMENT TO BUY THE CASINO FOR 60 MILLION SAID YESTERDAY HE WAS WILLING TO PAY ONLY 51 MILLION FOR THE ALADDIN HIS DECISION TO WITHDRAW FROM NEGOTIATIONS FOR THE ALADDIN COMES AFTER A NUMBER OF OTHER BIDDERS EMERGED FOR THE 1000ROOM HOTEL AND CASINO LAST WEEK THE CASINO'S OWNER BELL ATLANTIC TRICON LEASING CORP A UNIT OF BELL ATLANTIC CORP SAID IT WILL HOLD A SEALED BID AUCTION ON THE PROPERTY 9401190126 940119 FINANCING BUSINESS ENSERCH CORP ENSERCH CORP DALLAS SAID IT WILL SELL 150 MILLION OF PREVIOUSLY REGISTERED 10YEAR NOTES THE NATURALGAS COMPANY SAID IT WILL USE PART OF THE PROCEEDS TO PURCHASE ITS SERIES D ADJUSTABLERATE PREFERRED STOCK FOR 50 A SHARE A SPOKESWOMAN SAID THE COMPANY HAS 15 MILLION SHARES OUTSTANDING ENSERCH SAID IT ALSO WILL USE PROCEEDS TO REDEEM THE FOLLOWING SINKINGFUND DEBENTURES 75 DUE 1996 765 DUE 1998 895 DUE 1999 875 DUE 2001 AND 85 DUE 2002 PENDING BOARD APPROVAL FEB 8 THE COMPANY SAID REDEMPTIONS WILL BEGIN IN MARCH 9401190125 940119 BUSINESS BRIEF ARKLA INC COMPANY TO POST A CHARGE TO LOOSEN LINK TO SAMSON ARKLA INC SAID IN HOUSTON THAT IT WILL RECORD A STILLTOBEDETERMINED FOURTHQUARTER CHARGE TO SCALE BACK ITS RELATIONSHIP WITH A TULSA OKLA INVESTMENT COMPANY BUT ARKLA SAID IT WOULD STILL RECORD A PROFIT FOR 1993 FOR THE FIRST NINE MONTHS OF THE YEAR ARKLA EARNED 407 MILLION OR 28 CENTS A SHARE THE NATURAL GAS TRANSPORTATION DISTRIBUTION AND MARKETING COMPANY SAID IT HAS TERMINATED MOST OF ITS TIES WITH SUBSIDIARIES OF SAMSON INVESTMENT CO TRANSACTIONS BETWEEN ARKLA AND SAMSON ORIGINATED IN 1991 9401190124 940119 CHRYSLER SAYS PROFIT REACHED 4THPERIOD HIGH NET OF 777 MILLION EXCEEDS ROSIEST EXPECTATIONS STOCK SOARS TO RECORD BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP SAID FOURTHQUARTER EARNINGS MORE THAN DOUBLED TO THEIR HIGHEST LEVEL EVER FOR THE PERIOD SURPASSING ANALYSTS' ESTIMATES AND SENDING THE AUTO MAKER'S STOCK TO AN ALLTIME HIGH CHRYSLER WHICH IS LEADING THE AUTOINDUSTRY RECOVERY BY SELLING MORE CARS AND TRUCKS AT HIGHER PRICES WHILE CUTTING COSTS HAD NET INCOME OF 777 MILLION OR 211 A SHARE UP FROM 356 MILLION OR 112 A SHARE A YEAR EARLIER THAT EXCEEDED THE ESTIMATES OF EVEN THE MOST OPTIMISTIC ANALYSTS WHO HAD EXPECTED CHRYSLER TO EARN 750 MILLION REVENUE FOR THE QUARTER ROSE 18 TO 12 BILLION FROM 102 BILLION A YEAR EARLIER CHRYSLER SHARES JUMPED 75 CENTS TO CLOSE AT 6250 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AFTER RISING MONDAY ON EXPECTATIONS OF STRONG EARNINGS SHARES OF GENERAL MOTORS CORP AND FORD MOTOR CO ALSO ROSE DRIVEN BY INVESTOR EXPECTATIONS OF ADDITIONAL EARNINGS SURPRISES AS RISING DOMESTIC VEHICLE SALES AND HIGHER PRICES PROMISE SOLID PROFITS IN DETROIT GM CLOSED AT 62125 UP 375 CENTS AND FORD CLOSED AT 68625 UP 25 CENTS ALSO IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WITH PRICE INCREASES AND AN ARRAY OF MOREATTRACTIVE NEW PRODUCTS SUCH AS THE DODGE RAM PICKUP AND THE CHRYSLER CONCORDE SEDAN CHRYSLER BOOSTED THE AVERAGE REVENUE GENERATED FROM THE SALE OF A VEHICLE BY 63 TO ABOUT 17000 IN THE FOURTH QUARTER FROM ABOUT 16000 A YEAR AGO THE INCREASE INCLUDES A STEEP CUT IN REBATES OR SALES INCENTIVES WHICH AVERAGED 650 DOWN FROM 1020 A YEAR EARLIER IN ITS AUTOMOTIVE OPERATIONS CHRYSLER'S PERVEHICLE PROFIT FOR THE QUARTER HIT 1727 BEFORE TAXES UP FROM 1059 A YEAR EARLIER THAT MEANS THE ONE TIME SICKDOG OF THE AUTO INDUSTRY IS THE MOST PROFITABLE AUTO MAKER IN THE WORLD ON A PERVEHICLE BASIS SAID JOHN V KIRNAN AN ANALYST WITH SALOMON BROTHERS THESE GUYS ARE AHEAD OF THE REST OF THE INDUSTRY BY A COUNTRY MILE MR KIRNAN SAID TO BE SURE CHRYSLER IS BENEFITING FROM BOTH AN INDUSTRY REBOUND AND JAPANESE PRICE INCREASES WHICH HAVE ENABLED THE NO 3 US AUTO MAKER TO RAISE PRICES REPEATEDLY OVER THE PAST YEAR BUT CHRYSLER ALSO IS DOING A GOOD JOB OF CONTROLLING COSTS AND BUILDING PRODUCTS THAT PEOPLE ARE WILLING TO PAY FULL PRICE TO BUY IN A SIGN THAT THE COMPANY THINKS DEMAND FOR ITS PRODUCTS WILL STRENGTHEN FURTHER CHRYSLER'S BOARD AUTHORIZED SPENDING 1 BILLION TO INCREASE CAPACITY TO 32 MILLION UNITS A YEAR FROM THE CURRENT LEVEL OF ABOUT 26 MILLION THAT INCREASE ALONE COULD ENABLE CHRYSLER TO RAISE ITS 14 SHARE OF THE US VEHICLE MARKET BY FOUR PERCENTAGE POINTS FOR THE YEAR CHRYSLER POSTED A LOSS OF 25 BILLION OR 762 A SHARE COMPARED WITH 1992 EARNINGS OF 723 MILLION OR 221 A SHARE ITS PERFORMANCE WAS DRAGGED DOWN BY A 47 BILLION ACCOUNTING CHARGE FOR RETIREE HEALTH CARE AND A 283 MILLION CHARGE FOR OTHER RETIREMENT BENEFITS THE BIG NONCASH CHARGES MASKED WHAT OTHERWISE WAS CHRYSLER'S BEST YEAR EVER ON A PRETAX OPERATING BASIS CHRYSLER EARNED 38 BILLION FOR THE YEAR UP SHARPLY FROM 1992 PRETAX EARNINGS OF 934 MILLION AND FROM ITS PREVIOUS RECORD OF 24 BILLION IN 1984 REVENUE FOR THE YEAR ROSE 18 TO 436 BILLION FROM 369 BILLION IN 1992 GARY VALADE CHRYSLER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY WAS ABLE TO REDUCE THE VOLUME AT WHICH IT COULD BREAK EVEN IN NORTH AMERICA TO 16 MILLION VEHICLES A YEAR FROM 17 MILLION VEHICLES IN 1992 BY CUTTING COSTS THIS ISN'T A HIGHMARGIN INDUSTRY SO JUST INCREDIBLE THINGS HAPPEN TO THE BOTTOM LINE IF YOU CAN RAISE PRICES AT THE SAME TIME COSTS FALL SAYS RONALD GLANTZ AN ANALYST WITH DEAN WITTER IT WAS AN EXCEPTIONAL YEAR SAID ROBERT J EATON CHRYSLER'S CHAIRMAN WHO NONETHELESS SOUNDED HIS USUAL CAUTIONARY NOTE AND SOUGHT TO EMPHASIZE CHRYSLER'S COMMITMENT TO CONTINUOUS IMPROVEMENT CHRYSLER FINISHED THE YEAR WITH 4 BILLION OF CASH ON HAND UP SHARPLY FROM 23 BILLION LAST YEAR THE IMPROVEMENT IN ITS CASH POSITION CAME EVEN AS CHRYSLER CONTRIBUTED 35 BILLION TO REDUCE ITS UNFUNDED PENSION LIABILITY WHICH STOOD AT 22 BILLION AT YEAR END THE LIABILITY WAS 39 BILLION AT THE BEGINNING OF 1993 A GENEROUS UNION CONTRACT AND LOWER INTEREST RATES OFFSET MUCH OF CHRYSLER'S CONTRIBUTIONS DURING THE YEAR ANALYSTS SAY CHRYSLER COULD FULLY FUND ITS PENSION PLAN IN ABOUT 1 1/2 YEARS AHEAD OF THE TWO YEARS CHRYSLER HAS SAID IT COULD TAKE DESPITE THE TREMENDOUS INCREASE IN CHRYSLER'S PROFITABILITY MANY ANALYSTS EXPECT THE COMPANY TO CONTINUE TO DO BETTER AS IT UPDATES ITS LINEUP AND INCREASES CAPACITY THE COMPANY'S BALANCE SHEET ALSO IMPROVED WHEN IT REDEEMED 769 MILLION IN DEBT IN NOVEMBER DEBT OUTSTANDING WAS 28 BILLION AT THE END OF THE YEAR DOWN FROM 38 BILLION A YEAR EARLIER BECAUSE OF ITS SOLID OPERATING PERFORMANCE IN 1993 CHRYSLER WILL MAKE PROFITSHARING PAYMENTS TO EACH OF ITS UNITED AUTO WORKERS EMPLOYEES THIS YEAR AND PAY BONUSES TO EXECUTIVES IN CALCULATING THE PAYMENTS THE COMPANY WON'T INCLUDE THE ACCOUNTING LOSS 9401190123 940119 MCDONALD'S TO BUY BACK 1 BILLION OF ITS SHARES OAK BROOK ILL MCDONALD'S CORP SAID IT PLANS TO REPURCHASE AS MUCH AS 1 BILLION OF ITS COMMON STOCK WITHIN THE NEXT THREE YEARS IF EXERCISED IN FULL THE BUYBACK PLAN WOULD REPRESENT AT CURRENT PRICES ABOUT 174 MILLION SHARES OR AN INDICATED 49 OF THE COMPANY'S 353 MILLION SHARES OUTSTANDING AT SEPT 30 THE FASTFOOD CONCERN SAID IT WILL FUND THE REPURCHASES PRIMARILY THROUGH EXCESS CASH FLOW WHILE MAINTAINING A STRONG EQUITY BASE TO SUPPORT THE FUTURE GROWTH OF OUR WORLDWIDE BUSINESS THE COMPANY NOTED THAT OVER THE PAST 10 YEARS IT HAS SPENT 22 BILLION TO BUY BACK COMMON STOCK MCDONALD'S ALSO NOTED THAT IT RECENTLY ANNOUNCED PLANS TO ACCELERATE ITS EXPANSION AND WILL ADD BETWEEN 900 AND 1200 RESTAURANTS ANNUALLY IN 1994 AND IN FOLLOWING YEARS WITH ABOUT TWOTHIRDS OUTSIDE OF THE US IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MCDONALD'S SHARES ROSE 625 CENTS TO 5750 9401190122 940119 MARKETING & MEDIA CONDE NAST BUYS INTEREST IN MULTIMEDIA MAGAZINE NEW YORK CONDE NAST PUBLICATIONS INC SAID IT HAS ACQUIRED A MINORITY INTEREST IN WIRED A YEAROLD SAN FRANCISCOBASED MAGAZINE THAT COVERS THE MULTIMEDIA MARKET TERMS WEREN'T DISCLOSED BUT THE MAGAZINE WILL CONTINUE TO BE CONTROLLED FINANCIALLY AND EDITORIALLY BY ITS COFOUNDERS JANE METCALFE AND LOUIS ROSSETTO LAUNCHED LAST JANUARY ON A SHOESTRING WIRED HAS BUILT ITS SUBSCRIBER BASE TO 30000 AND NOW SELLS 60 ADVERTISING PAGES PER ISSUE THE MAGAZINE HAS TRIED TO DO FOR CYBERSPACE WHAT ROLLING STONE DID FOR ROCK MUSIC ILLUSTRATING THE CULTURE SURROUNDING EMERGING MULTIMEDIA TECHNOLOGIES WITHOUT TECHIE JARGON WE LIKE TO THINK WE'RE BECOMING THE VOICE OF THE DIGITAL REVOLUTION SAYS MR ROSSETTO WHO IS EDITOR AND PUBLISHER HE SAID THE INVESTMENT HAS ALREADY ALLOWED WIRED TO HIRE ITS FIRST CIRCULATION DIRECTOR AND THE MAGAZINE PLANS A MAJOR DIRECTMAIL CAMPAIGN TO BOOST CIRCULATION CONDE NAST IS THE MAGAZINE PUBLISHING ARM OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC A SPOKESWOMAN SAID IT WAS THE FIRST TIME CONDE NAST HAS ACQUIRED A MINORITY STAKE IN ANOTHER MAGAZINE IN THIS COUNTRY IT PREFERS TO BUY THEM OUTRIGHT OR START ITS OWN 9401190121 940119 POLITICS & POLICY RENO IS EXPECTED TO PICK WHITEWATER COUNSEL SOON WASHINGTON ATTORNEY GENERAL JANET RENO IS EXPECTED TO ANNOUNCE SOON THE NAME OF THE SPECIAL COUNSEL WHO WILL EXAMINE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CORP A JUSTICE DEPARTMENT OFFICIAL SAID THE ANNOUNCEMENT MAY COME AS EARLY AS TODAY BUT THAT WOULD BE QUITE A PUSH MS RENO WAS TRAVELING BETWEEN FRIDAY AND LAST NIGHT AND PLANNED TO REVIEW NAMES UPON HER RETURN WHILE SHE WAS AWAY A SMALL GROUP OF DEPARTMENT EMPLOYEES INCLUDING DEPUTY ATTORNEY GENERAL PHILIP HEYMANN AND CRIMINALDIVISION CHIEF JO ANN HARRIS HAVE BEEN CONTACTING LAWYERS TO SEE WHETHER THEY WOULD BE AVAILABLE FOR THE POST AMONG THOSE UNDER CONSIDERATION ARE DAN WEBB A FORMER US ATTORNEY WHO WAS A DEPUTY INDEPENDENT COUNSEL DURING THE IRANCONTRA PROBE AND FORMER US ATTORNEY ROBERT FISK 9401190120 940119 ENTERPRISE US DISASTER AID MAY TOTAL 600 MILLION RECIPIENTS BENEFIT FROM TRIPLING OF MAXIMUM SBA LOAN BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SMALL BUSINESS ADMINISTRATION ESTIMATES THAT FEDERAL DISASTER LOANS TO VICTIMS OF THIS WEEK'S LOS ANGELES EARTHQUAKE WILL TOTAL NEARLY 600 MILLION OR ABOUT THE SAME AS THE 581 MILLION MADE AFTER THE 1989 SAN FRANCISCO QUAKE IN THAT DISASTER THE SBA MADE 15000 LOANS RECIPIENTS IN LOS ANGELES WILL BENEFIT HOWEVER FROM A TRIPLING OF THE MAXIMUM AMOUNT ALLOWED FOR SBA LOANS APPROVED BY CONGRESS LAST SUMMER AFTER FLOODING IN THE MIDWEST HOMEOWNERS AND SMALL BUSINESSES CAN BORROW UNDER THE PROGRAM THE MAXIMUM SBA DISASTER LOAN FOR PHYSICAL DAMAGE WAS RAISED TO 15 MILLION FROM 500000 THE LOANS HAVE A BELOWMARKET 4 ANNUAL INTEREST RATE LOANS FOR PHYSICAL DAMAGE ABOVE 10000 REQUIRE SOME FORM OF COLLATERAL USUALLY A LIEN ON THE BORROWER'S HOME OR BUSINESS REAL ESTATE THE SBA BEGAN SENDING DISASTERRELIEF PERSONNEL TO THE LOS ANGELES METROPOLITAN AREA AFTER THE EARTHQUAKE MONDAY THE AGENCY SAYS IT EXPECTS TO HAVE SEVERAL HUNDRED RELIEF WORKERS IN PLACE TODAY WORKING WITH ENTREPRENEURS AND HOMEOWNERS THE SBA ALREADY HAD A DISASTERAID OFFICE OPEN IN ARCADIA NORTH OF LOS ANGELES THAT WAS HELPING PEOPLE HIT BY A STRING OF MISFORTUNES THE AREA SAW FLOODS AND A MAJOR RIOT IN 1992 AND LAST YEAR THERE WERE WILDFIRES AND A SMALL EARTHQUAKE IN THE MOUNTAINS EAST OF THE CITY STRUCTURAL DAMAGE WILL BE THE BIGGEST PROBLEM FOR MOST SMALL COMPANIES AS A RESULT OF THE QUAKE SAID BERNARD KULIK THE SBA'S ASSISTANT ADMINISTRATOR FOR DISASTER RELIEF THERE'S A LOT OF DAMAGE PEOPLE DON'T SEE RIGHT AWAY THEY BEGIN TO NOTICE THE CRACKS IN THE WALLS AND THERE'S ALWAYS A LOT OF CHIMNEY DAMAGE AFTERSHOCKS ARE ALSO A BIG PROBLEM THEY CAN CAUSE A LOT OF NEW DAMAGE AND SOMETIMES THEY'RE THE STRAW THAT BREAKS THE CAMEL'S BACK FOR DAMAGE THAT WAS ALREADY THERE MR KULIK SAID MR KULIK SAID HE SAW A TYPICAL EXAMPLE OF A SMALLBUSINESS PROBLEM ON TELEVISION A SMALL GROCERY STORE SELLING BOTTLED WATER AND BATTERIES FROM ITS FRONT DOOR BECAUSE MUCH OF THE BUILDING'S CEILING HAD COLLAPSED INSIDE BUSINESS OWNERS ALSO FACE THE DANGER AND EXPENSE CAUSED BY BROKEN GAS AND WATER LINES BUSINESSES CAN REQUEST SBA DISASTER AID IMMEDIATELY BY CALLING A TOLLFREE LINE 18004629029 RUN BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY THEY ALSO CAN APPLY AT THE SBA'S ARCADIA OFFICE OR WAIT FOR THE OPENING OF THE FEMA DISASTER ASSISTANCE CENTERS IN THE COMING DAYS FEW BUSINESSES HAVE EARTHQUAKE INSURANCE BECAUSE IT IS COSTLY THE SBA'S MR KULIK SAID THE SBA PROVIDES LOANS FOR FINANCIAL AS WELL AS PHYSICAL LOSSES THAT RESULT FROM DISASTERS FOR INSTANCE BUSINESSES THAT CAN BE REACHED ONLY BY A LOS ANGELES FREEWAY WOULD SUFFER ECONOMICALLY EVEN IF THEY HAD NO PHYSICAL DAMAGE SOME OWNERS WHOSE BUSINESSES WERE DAMAGED IN THE 1992 LOS ANGELES RIOT COMPLAINED ABOUT FEDERAL DISASTER AID BECAUSE THEY WANTED GRANTS OR SOME FORM OF REPARATION INSTEAD OF LOANS FEMA WHICH COORDINATES IMMEDIATE DISASTER RELIEF IS THE ONLY SOURCE OF DIRECT GRANTS HOWEVER THE SBA'S DISASTERRELIEF EFFORTS WAS PRAISED BY THE HOUSE SMALL BUSINESS COMMITTEE LAST YEAR AS ONE OF THE MAIN FEDERAL AGENCIES RESPONSIBLE FOR DISASTER AID THE SBA HAS BEEN STRETCHED BY A STRING OF UPHEAVALS STARTING WITH HURRICANE HUGO IN 1989 TO THE LOS ANGELES RIOTS AND HURRICANE ANDREW IN 1992 TO LAST YEAR'S FLOODS AS A RESULT THE TOTAL AMOUNT OF SBA DISASTER LOANS REACHED A RECORD 168 BILLION IN FISCAL 1993 EXCEEDING THE PREVIOUS 164 BILLION HIGH SET IN 1972 AFTER HURRICANE AGNES 9401190119 940119 CBOT PROPOSAL SEEKS SPACE FOR GROWTH BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO AS A TRADER AMONG THE SCREAMING THRONG AT THE MOST CROWDED FUTURES EXCHANGE IN THE WORLD JIM HEINZ WAS OFTEN SQUEEZED OUT OF PLACE BY BURLY COLLEAGUES AND HURLED BODILY INTO THE TRADING PIT BELOW TODAY MR HEINZ AND THE OTHER 2100 VOTING MEMBERS OF THE BOARD OF TRADE HAVE A CHANCE TO EASE THE CHRONIC CROWDING AT THEIR EXCHANGE TRADERS WILL VOTE ON A PROPOSAL TO DIG DEEP INTO EXCHANGE COFFERS TO BUY AND RAZE AN ADJOINING BUILDING IN DOWNTOWN CHICAGO AND TO CONSTRUCT A HUGE NEW TRADING FLOOR ON THE SITE DESPITE THE OBVIOUS NEED FOR MORE BREATHING ROOM THE PROPOSAL ISN'T GETTING THE WARMEST OF WELCOMES LESLIE ROSENTHAL A FORMER EXCHANGE CHAIRMAN IS WAGING AN AGGRESSIVE CAMPAIGN TO DEFEAT THE PROPOSAL IT'S TOO BIG AND TOO EXPENSIVE MR ROSENTHAL SAYS THE LEADERSHIP OF THE CBOT PRINCIPALLY PATRICK H ARBOR CHAIRMAN OF THE CBOT AND CHAMPION OF THE MOVE IS TRYING TO SELL THE MEMBERSHIP ON A PLAN THAT WOULD BUILD A TRADING FLOOR THE SIZE OF A SUPERTANKER THE PROBLEM IS THAT ONCE WE START WE CAN'T TURN IT AROUND AND ONCE FINISHED WE WILL BE SAILING IT HALFEMPTY NONSENSE SAYS MR ARBOR AT THE CBOT WE'RE CHOKED AND THROTTLED FOR SPACE HE SAYS WE DON'T HAVE BOOTH SPACE FOR THE BIG BROKERAGE FIRMS THAT BRING ORDERS TO THE FLOOR OUR SIGHT LINES ARE INADEQUATE TO BRING ORDERS TO THE PITS IN AN EFFICIENT MANNER AND THE SPACE PROBLEM ISN'T CONFINED TO THE BOARD OF TRADE IN NEW YORK FOUR FUTURES EXCHANGES SHARE THE SAME CRAMPED TRADING FLOOR HAZARDS ABOUND THERE SUCH AS THE ROLLS OF CARPET RIPPED UP BY SLASHING FEET AND PHONE CORDS THAT STRETCH ACROSS AISLES ALONG WHICH PASS HUNDREDS OF TRADERS BASICALLY THE US FUTURES INDUSTRY IS THE VICTIM OF ITS OWN RAPID GROWTH WITH A BOOMING BUSINESS THAT IN MANY CASES HAS OVERTAKEN THE EXCHANGES' PHYSICAL CAPABILITY TO MANAGE IT THREE OF THE FOUR NEW YORK MARKETS ALSO PLAN TO BUILD A NEW TRADING FLOOR AND HAVE SELECTED A SITE IN MANHATTAN THE NEW YORK MERCANTILE EXCHANGE THE BIGGEST OF THE FOUR NEW YORK MARKETS MAY MOVE WITH THEM OR MAY GO ITS OWN WAY WE'RE SEARCHING DESPERATELY FOR NEW SPACE SAYS ALLEN MARX A NYMEX TRADER AND MEMBER OF AN EXCHANGE COMMITTEE CONTEMPLATING POSSIBLE RELOCATION VENUES IN CHICAGO THE PRICE OF EXPANSION IS STEEP THE TOTAL COST OF MR ARBOR'S BUILDING PROPOSAL WHICH INCLUDES A 60000SQUAREFOOT ELEVATED TRADING FLOOR THAT WOULD SPAN A CHICAGO STREET IS ESTIMATED AT 1715 MILLION WHAT MEMBERS WILL VOTE ON TODAY HOWEVER IS MERELY THE 26 MILLION COST OF ACQUIRING THE BUILDING IN 1992 TRADERS DEFEATED A PROPOSAL TO ACQUIRE THE SAME BUILDING FOR 24 MILLION AND DEVELOP IT FOR A RELATIVELY MODEST 100 MILLION SO WHY DOES MR ARBOR THINK HE HAS A BETTER CHANCE THIS TIME THERE'S NO INCREASE IN TRADING FEES BUILT INTO THIS PROPOSAL HE SAYS LAST TIME THERE WAS MR ARBOR'S PLAN CALLS FOR THE COST OF THE PROJECT TO BE PAID OUT OF GENERAL EXCHANGE REVENUES OVER THE NEXT 10 YEARS THE BOARD OF TRADE HAD RECORD TRADING VOLUME OF 178 MILLION FUTURES AND OPTIONS CONTRACTS IN 1993 PRODUCING TOTAL EXCHANGE REVENUE OF 98 MILLION IF GROWTH CONTINUES AT A 3 TO 5 CLIP MR ARBOR SAYS THE EXCHANGE WILL BE ABLE TO PAY FOR THE NEW FACILITY WITHOUT RAISING FEES MR ROSENTHAL ASSERTS THAT MR ARBOR'S REVENUE PROJECTIONS FOR THE COMING DECADE ARE OVERLY OPTIMISTIC HE NOTES THAT A SIMILAR EXPANSION IN THE EARLY 1980S CONSTRUCTION OF A BUILDING THAT IS NOW CALLED THE BOARD OF TRADE ANNEX WAS BUDGETED AT 30 MILLION BUT ENDED UP COSTING ABOUT 120 MILLION NOR DOES MR ROSENTHAL WHO RUNS HIS OWN FUTURES BROKERAGE FIRM QUANTUM FINANCIAL SERVICES BELIEVE CBOT TRADING VOLUME WILL GROW AT THE PACE MR ARBOR PREDICTS YET MR ARBOR'S PLAN HAS GOTTEN A BOOST LATELY FROM THE ENDORSEMENTS OF MANY PROMINENT CBOT TRADERS AMONG THEM ARE L THOMAS BALDWIN ONE OF THE BIGGEST AND MOST INFLUENTIAL TREASURYBOND FUTURES TRADERS AT THE EXCHANGE CONRAD LESLIE A CBOT VETERAN AND THOMAS CUNNINGHAM CHAIRMAN OF THE EXCHANGE COMMITTEE THAT REPRESENTS SOCALLED LOCAL TRADERS WHO TRADE FOR THEIR OWN PROFIT I THINK IT'S GOING TO PASS SAYS MR HEINZ ALTHOUGH HE PROFESSES HIMSELF UNDECIDED ABOUT WHICH WAY TO VOTE AND SAYS MANY OF HIS COLLEAGUES ARE SIMILARLY TORN IT'S VERY EXPENSIVE HE SAYS IT'S A SIZABLE COMMITMENT TO THE OPENOUTCRY SYSTEM OF FLOOR TRADING ELECTRONIC SCREENBASED TRADING IS GAINING A FOOTHOLD AT OTHER FUTURES EXCHANGES AND MAY BE THE WAVE OF THE FUTURE IF IT IS WE MIGHT BE BUILDING A HUGE WHITE ELEPHANT TO EASE CHRONIC CROWDING ON ITS TRADING FLOOR THE CHICAGO BOARD OF TRADE HAS PROPOSED ACQUIRING AN ADJOINING BUILDING AND CONSTRUCTING A HIGHTECH TRADING FLOOR ON THE SITE THE NEW FACILITY WOULD BE CONNECTED TO THE FAMOUS ART DECO BOARD OF TRADE BUILDING BY AN OVERHEAD SPAN HERE ARE SOME DETAILS OF THE PROPOSAL 9401190118 940119 WHO'S NEWS HJ HEINZ CO HJ HEINZ CO PITTSBURGH EDITH E HOLIDAY 41 YEARS OLD AN ATTORNEY AND FORMER ASSISTANT TO PRESIDENT BUSH AND SECRETARY OF HIS CABINET WAS NAMED A NEW DIRECTOR OF THIS FOOD COMPANY INCREASING THE BOARD SIZE TO 18 MEMBERS FROM 17 9401190117 940119 LEISURE & ARTS OPERA SONGS FOR THE SILENT SHEIK BY MANUELA HOELTERHOFF WASHINGTON DC IN 1926 TWO FAMOUS MEN SAT DOWN TO DISCUSS THE MEANING OF LIFE OVER AN INCONGRUOUS DINNER ON A SUMMER NIGHT IN NEW YORK THEY HAD NEVER MET BEFORE AND NEVER WOULD AGAIN WITHIN A WEEK RUDOLPH VALENTINO WAS DEAD AT AGE 31 LEAVING THOUSANDS OF WOMEN TO SOB AT HIS COFFIN AND HL MENCKEN TO REFLECT UPON THEIR STRANGE ENCOUNTER AND THE NATURE OF FAME IN A STORY HE FILED AWAY UNDER ODD FISH IT'S A LOT LIVELIER PERCEPTIVE AND SHORTER THAN THE REVERENTIAL NEW OPERA THE DREAM OF VALENTINO BY THE COMPOSER DOMINICK ARGENTO AND THE LIBRETTIST CHARLES NOLTE THAT JUST PREMIERED AT THE WASHINGTON OPERA AT THE KENNEDY CENTER VALENTINO WAS A SENSITIVE SEARCHING ARTIST DESTROYED BY AVARICIOUS HOLLYWOOD MOGULS IS THE UNSURPRISING MESSAGE OF THIS HIGHMINDED TRIBUTE TO THE SCREEN'S FIRST MALE MEGASTAR WHO WAS NEVERTHELESS PAID A FORTUNE FOR HIS SUFFERING ONE LONGED FOR MENCKEN'S SHARP TONE AS THIS UNDRAMATIC ODE TO SELFPITY PUTTERED ALONG WITH TOO MANY WOMEN AND NO SAGE OF BALTIMORE TO GIVE VOICE TO THE SILENT SHEIK IS A CHALLENGE ONE WOULD HAVE THOUGHT MR ARGENTO EASILY CAPABLE OF MEETING HE'S THE ENGAGINGLY TRADITIONAL TUNESMITH WHO PROBED THE FRACTURED MIND OF VIRGINIA WOOLF IN AN EVOCATIVE SONG CYCLE AND WHO LATER WITH MR NOLTE DREAMED UP THE POETICALLY SURREAL VOYAGE OF EDGAR ALLEN POE WHICH THE LYRIC OPERA OF CHICAGO STAGED SO HANDSOMELY IN THE PHANTASMAGORICAL SETTINGS OF JOHN CONKLIN BUT THIS TIME WITH MR CONKLIN ONCE AGAIN DESIGNING THE RESULT IS AS LEADEN AS POE WAS LIGHT SO MUCH ATTENTION IS SPENT DOTING ON THE BIOGRAPHICAL FACTS THAT THE ELEMENT OF FANTASY THAT LIES AT THE HEART OF ALL OPERA IS GIVEN LITTLE SPACE TO BLOOM VALENTINO STARTS PROMISINGLY ENOUGH IN A SPOOKY ART DECO FUNERAL PARLOR WHERE THE CORPSE LIES COVERED WITH ROSES AND EERILY LIT VALENTINO WE CRY TO THAT LIGHT IN THE SKY SINGS A PLAINTIVE PERIOD VOICE ON AN OLD VICTROLA THE CATCHY TUNE PIERCING A CLASSICAL REQUIEM BUT THEN THE PIECE GOES NOWHERE EXCEPT BACK IN TIME NOT THE FRESHEST CONCEPT THE SEPULCHRAL MOOD ONLY BRIEFLY LIFTS FROM THE UNIT SET TO SHOW THE SAINTED ONE FILMING THE SHEIK VALENTINO FIRST STEPS TO THE STAGE AS A BALLROOM DANCER A LEWD FEMALE HAS MADE ADVANCES AND HE REJECTS THEM FIRMLY I HAVE PRIDE I HAVE DIGNITY HE ANNOUNCES IN A CREDO THAT IS NOT MEMORABLY MELODIC LITTLE OF THE MUSIC IS NEVER MIND MR ARGENTO'S PERIODIC SKILL IN EVOKING THE SOUND OF THE '20S THE TIN PAN ALLEY PIANO OR THE MUSIC HALL TANGO IN THE RESULTING COMMOTION A MOTHERLY SCREENWRITER JUNE MATHIS EXTRICATES HIM FROM THE COPS AND FEEDS HIM HE REWARDS HER NOT WITH THE LOVE SHE YEARNS FOR BUT WITH A CUMBERSOME ARIA ABOUT DESTINY HIS BEFORE FALLING ASLEEP SHE SINGS OF HIS OLIVE SKIN A REFERENCE SO OBSESSIVE AS THE OPERA CONTINUED THAT I LOOKED TO SEE IF KISS MY FACE WAS THE SPONSOR NO THE AT&T FOUNDATION THE LILA WALLACEREADERS DIGEST FUND AND THE NEA GOT THIS SHOW ON THE ROAD JUNE TAKES HIM TO HOLLYWOOD WHERE SHE WRITES THE SHEIK AND MAKES HIM FAMOUS ONLY TO SEE HIM FALL IN THE CLUTCHES OF THE CRASS MOGUL WHO IS MALICIOUSLY TRYING TO FORCE STARDOM ON THE IMPOVERISHED IMMIGRANT AND SOME NUTTY LESBIANS WHO WANT TO MARRY HIM IN ACT I VALENTINO TIES THE KNOT WITH STARLET JEAN ACKER WHO THEN LOCKS HIM OUT OF THE BRIDAL SUITE SCREAMING IT WAS ALL A MISTAKE IN THE SECOND AND LAST ACT HE TAKES OFF FOR MEXICO WITH THE DESIGNER NATACHA RAMBOVA WHO DUMPS HIM QUICKLY ORCHESTRATING THIS SAPPHIC SERAGLIO IS ALLA NAZIMOVA AN AGING ACTRESS AND VIOLINIST AND FILM HISTORY FOOTNOTE SHE ONCE MADE AN ALLGAY SALOME FLICK IN TRIBUTE TO OSCAR WILDE NAZIMOVA WANTS TO PLAY CAMILLE AS HE AUDITIONS IN HER LIVING ROOM PLANTING ARDENT KISSES ON ACKER NAZIMOVA SAWS AWAY SOULFULLY ON HER FIDDLE IS THIS ABSURD OR WHAT BUT ASTONISHINGLY THE SCENE IS NOT PLAYED FOR LAUGHS SO ENAMORED ARE MESSRS ARGENTO AND NOLTE OF THEIR SUBJECT THEY DON'T SEE THE HUMOR OF HIS LIFE HOW MANY LESBIANS WERE THERE ANYWAY IN HOLLYWOOD IN RUDY'S DAY FIVE THREE ONE HUNDRED THOUSAND WHO KNOWS BUT HOW THE HECK DID THE WORLD'S MOST FAMOUS LATIN LOVER END UP MARRYING TWO OF THEM RAMBOVA DID LATER INSIST SHE WAS JUST A STRAIGHT SPIRITUALIST DID HE NOT KNOW MENCKEN THOUGHT HIM A BIT NAIVE DID HE THINK LOVE WOULD FIND A WAY WAS HE HIMSELF EITHER IMPOTENT RUMORED OR HOMOSEXUALLY INCLINED ALSO RUMORED AND THUS HAPPY TO ESCAPE INTO WHAT WAS CALLED A WHITE MARRIAGE WHAT BROUGHT THE DISTRAUGHT STAR TO MENCKEN'S TABLE ASKING FOR ADVICE WAS A CHICAGO TRIBUNE EDITORIAL WHICH FACETIOUSLY SUGGESTED HE SHOULD HAVE BEEN DROWNED FOR THE GOOD OF AMERICA AND ITS MASCULINE MEN THE WRITER HAD COME UPON A PINK POWDER DISPENSER IN A MEN'S ROOM AND BLAMED ITS PRESENCE ON THE SHEIK VALENTINO CHALLENGED HIM TO A DUEL HIS MASCULINE HONOR HAD BEEN OUTRAGED WROTE MENCKEN UNLUCKILY FOR HIM ALL THIS TOOK PLACE IN THE UNITED STATES WHERE THE WORD HONOR SAVE WHEN IT IS APPLIED TO THE STRUCTURAL INTEGRITY OF WOMEN HAS ONLY COMIC SIGNIFICANCE MENCKEN DETECTED IN HIS CLOTHES AND SIMPLE ELOQUENCE A GENTLEMAN RECOILING FROM A LIFE HE FOUND INCREASINGLY VULGAR AND POSSIBLY FUTILE HE DID NOT THINK HE SAW AN ARTIST AND CONCLUDED THAT THE EXPLODING ULCER SAVED THE STAR FROM A BITTER END BUT VALENTINO'S MAKERS THINK OTHERWISE AND SO HE SINGS TWICE OF HOW HE PROMISED HIS MOTHER TO BE A SERIOUS STAGE ACTOR THAT IS THE DREAM OF THE OPERA'S TITLE MORE INTERESTING DREAMS HAVE BEEN DREAMED AND COMPOSED MR ARGENTO MAKES HIS VALENTINO A DRAMATIC TENOR RATHER OVERBURDENING ROBERT BRUBAKER WHOSE HEROIC STRUGGLES FINALLY BROUGHT HIM CLOSER TO THE VOICELESS SHEIK THAN WAS INTENDED IN ANY OTHER ROLE WE MIGHT HAVE ENJOYED HIS THIN BY OPERA STANDARDS APPEARANCE BUT AS VALENTINO THE TENOR LACKED THE EXOTIC CHARM THAT MADE THE ACTOR CATNIP FOR THE GIRLS THOSE GIRLS THEY WERE EITHER HARD ON THE EARS OR HARD TO KEEP APART ESPECIALLY EDRIE MEANS AND JULIA ANNE WOLFE IN THE PALLID ROLES OF JEAN ACKER AND NATACHA RAMBOVA NAZIMOVA'S FLAMBOYANT WARDROBE DESIGNED BY COUTURIER VALENTINO NO RELATION MADE IT HARD TO IGNORE JOYCE CASTLE'S SHRIEKS MAYBE SHE HAD TACKS IN HER NICE PUMPS TWO FINE SINGERS SUZANNE MURPHY AS THE SCREENWRITER AND JULIAN PATRICK AS THE MOGUL MANAGED TO INJECT SOME PATHOS INTO THEIR PLATITUDES CHRISTOPHER KEENE APPEARED TO PRESIDE ATTENTIVELY OVER THE WELLORCHESTRATED SCORE SWEDISH DIRECTOR ANNMARGRET PETTERSSON LIVENED UP THE CROWDS AND CARDBOARD CHARACTERS AS MUCH AS POSSIBLE MAYBE BEFORE THE DREAM OF VALENTINO GOES TO THE COPRODUCING DALLAS OPERA IN 1995 IT CAN BE RETOOLED INTO A COMEDY 9401190114 940119 WHO'S NEWS LOTUS DEVELOPMENT CORP LOTUS DEVELOPMENT CORP CAMBRIDGE MASS WILLIAM H GRAY III PRESIDENT AND CHIEF EXECUTIVE OF THE UNITED NEGRO COLLEGE FUND AND A FORMER US REPRESENTATIVE D PA WAS ELECTED A DIRECTOR OF THIS COMPUTER SOFTWARE MAKER EXPANDING ITS BOARD MEMBERSHIP TO EIGHT 9401190113 940119 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 8 HIGH 3 1/16 LOW 8 NEAR CLOSING BID 10 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 309 60 TO 89 DAYS 312 90 TO 119 DAYS 314 120 TO 149 DAYS 315 150 TO 179 DAYS 323 180 TO 259 DAYS 332 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 315 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 272 SIX MONTHS 295 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 308 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 306 90 DAYS 309 120 DAYS 314 150 DAYS 318 180 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 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS FOREIGN PRIME RATES CANADA 550 GERMANY 589 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 18 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 299 13 WEEKS 315 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 694 60 DAYS 701 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 690 60 DAYS 7 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9401190112 940119 CALPERS SUBMITS PROPOSALS FOR 3 COMPANIES' PROXIES SACRAMENTO CALIF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES IS GEARING UP FOR PROXY FIGHTS WITH THREE BIG COMPANIES THIS SPRING IN A REPORT TO BE RELEASED TODAY CALPERS SAID IT FILED SHAREHOLDER PROPOSALS TO APPEAR ON PROXY STATEMENTS AT ANNUAL MEETINGS AT BOISE CASCADE CORP US SHOE CORP AND ZENITH ELECTRONICS CORP THE PROPOSALS AIM TO GIVE OUTSIDE DIRECTORS MORE CLOUT MAKE MANAGEMENT MORE RESPONSIVE TO SHAREHOLDERS AND IMPROVE THE COMPANIES' OPERATING RESULTS MEANWHILE THE FUND SAYS IT IS POSTPONING DECISIONS ABOUT SIMILAR PROPOSALS AT CPI CORP A PHOTOGRAPHIC HOLDING COMPANY AND FIRST MISSISSIPPI CORP A CHEMICAL CONCERN AT PAPER COMPANY BOISE CASCADE SPOKESMAN ROBERT HAYES SAYS THAT CALPERS'S COMPLAINTS ABOUT THE COMPANY'S FINANCIAL PERFORMANCE ARE WAY OFF THE MARK A SPOKESMAN FOR US SHOE WHICH HAS INTERESTS IN SPECIALTY RETAILING SAID TALKS WOULD CONTINUE WITH CALPERS BEFORE THE COMPANY'S ANNUAL MEETING IN MAY WHILE A ZENITH SPOKESMAN SAID COMPANY OFFICIALS ARE STILL IN DISCUSSIONS WITH CALPERS AND BELIEVE THE FUND WILL WITHDRAW ITS PROPOSAL BEFORE THE COMPANY'S APRIL ANNUAL MEETING 9401190111 940119 LILLY TO TAKE PRETAX CHARGE OF 12 BILLION MOVE WILL RESULT IN LOSS DRUG CONCERN CONFIRMS DEVICEUNIT DIVESTITURE BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ELI LILLY & CO SAID IT WILL TAKE A 12 BILLION PRETAX FOURTHQUARTER CHARGE MOSTLY TO STREAMLINE FOREIGN OPERATIONS AND FUND PREVIOUSLY ANNOUNCED EARLY RETIREMENTS OF SOME 2600 WORKERS THE INDIANAPOLIS PHARMACEUTICAL CONCERN ALSO SAID IT WOULD AS REPORTED SELL OR SPIN OFF ITS ENTIRE 12 BILLIONAYEAR MEDICALDEVICE BUSINESS THE MOVE EXPECTED TO TAKE PLACE THIS YEAR WOULD SIGNIFICANTLY REVAMP LILLY AND COULD ALTER COMPETITION IN THE MEDICALDEVICE FIELD THE CHARGE OF WHICH ABOUT 540 MILLION WILL GO TOWARD LILLY'S PREVIOUSLY ANNOUNCED EARLY RETIREMENT PLAN WILL PRODUCE A FOURTHQUARTER LOSS ASIDE FROM RESTRUCTURING CHARGES HOWEVER LILLY SAID PERSHARE EARNINGS FOR ALL OF 1993 WOULD FALL WITHIN ANALYSTS' EXPECTATIONS 430 A SHARE TO 480 A SHARE LILLY SHARES YESTERDAY TRADED ABOVE THEIR 52WEEK HIGH OF 61 AND CLOSED AT 6150 UP 1625 IN TRADING ON THE NEW YORK STOCK EXCHANGE LILLY'S SECOND MAJOR RESTRUCTURING CHARGE IN TWO YEARS LIKELY WILL INCLUDE OFFICE AND PLANT CLOSINGS IN EUROPE AND PUERTO RICO COMPANY OFFICIALS SAID THE MOVE ALSO WILL PAY TO END CONTRACTS UNDER WHICH OUTSIDE DISTRIBUTORS SELL LILLY MEDICAL DEVICES IN EUROPE THAT EQUIPMENT WILL BE SOLD BY COMPANY EMPLOYEES IN THE FUTURE SAID JAMES M CORNELIUS CHIEF FINANCIAL OFFICER IN 1992'S THIRD QUARTER LILLY TOOK A 245 MILLION PRETAX CHARGE TO WRITE DOWN ASSETS YESTERDAY LILLY CHAIRMAN AND CHIEF EXECUTIVE RANDALL L TOBIAS PLEDGED HE WOULD TRY TO TRANSFER WORKERS TO OTHER JOBS INSTEAD OF FIRING THEM HE SAID IN AN INTERVIEW THAT HE CANNOT GUARANTEE THERE WILL BE NO LAYOFFS BUT INSISTED THAT EVERY POSSIBLE CONSIDERATION WOULD BE GIVEN TO AVOIDING THEM THE ASSURANCE IS EXPECTED TO BOLSTER WORKER MORALE AND LOYALTY AT THE TRADITIONBOUND COMPANY AS PART OF ITS MOVE TO LEAVE THE MEDICALDEVICE BUSINESS LILLY SAID IT INTENDS TO SELL ITS PHYSIOCONTROL CORP UNIT IN REDMOND WASH ALONG WITH HYBRITECH INC AND PACIFIC BIOTECH INC IN SAN DIEGO HYBRITECH SALES REACHED 143 MILLION IN 1992 BUT FELL ABOUT 20 LAST YEAR IN THE FACE OF COMPETITION FROM ABBOTT LABORATORIES WHICH MAKES A COMPETING PROSTATECANCER BLOOD TEST PHYSIOCONTROL ONCE HAD 150 MILLION IN ANNUAL SALES BUT NOW IS MIRED IN REGULATORY DIFFICULTIES WITH THE FOOD AND DRUG ADMINISTRATION PACIFIC BIOTECH WHICH MAKES DIAGNOSTIC TESTS INCLUDING ONE FOR PREGNANCY HAS AN ESTIMATED 20 MILLION IN ANNUAL SALES LILLY'S SIX OTHER MEDICALDEVICE COMPANIES LED IN SALES BY CARDIAC PACEMAKERS INC WILL BE GROUPED TOGETHER INTO A SEPARATE HOLDING COMPANY AND COULD BE SOLD OFF AS A WHOLE OR IN PIECES LILLY SAID BUT LILLY ADDED THAT IT IS CONSIDERING OTHER OPTIONS FOR THE HOLDING COMPANY INCLUDING SPINNING IT OFF TO CURRENT LILLY HOLDERS OR LILLY EXECUTIVES TOLD WALL STREET ANALYSTS YESTERDAY THE COMPANY MAY MAKE AN INITIAL PUBLIC OFFERING OF STOCK IN SOME OF THE NEW CONCERN AS EARLY AS THIS YEAR'S THIRD QUARTER OTHER PARTS OF THE HOLDING COMPANY COULD THEN BE SOLD TO OTHER MEDICALCARE COMPANIES MR TOBIAS THE CHAIRMAN SAID ONE FUNCTION OF SUCH AN IPO WOULD BE TO PLACE A VALUE ON THESE SHARES IN THE MARKETPLACE BEFORE NEGOTIATING FURTHER SALES OF THE DEVICE COMPANIES WE FEEL THE TRUE VALUE OF THESE COMPANIES HAS BEEN MASKED BECAUSE PEOPLE SEE US AS A PHARMACEUTICAL COMPANY HE SAID REGARDLESS OF WHICH OPTION THE COMPANY PICKS IT SAID IT EXPECTS A DIVESTITURE OF THE NEW COMPANY IN THE NEXT YEAR 9401190110 940119 WHO'S NEWS UST INC UST INC GREENWICH CONN ALBERT J TORTORELLA 51 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT RESPONSIBLE FOR COMMUNICATIONS PROGRAMS AT THIS MAKER OF SMOKELESS TOBACCO PRODUCTS THE POSITION IS NEW MR TORTORELLA WAS FORMERLY VICE CHAIRMAN OF BURSONMARSTELLER A NEW YORK PUBLIC RELATIONS FIRM 9401190109 940119 LEISURE & ARTS ON DISK MY EPIPHANY WITH BLUE EYES THOMAS T VOGEL JR NEW YORK SOMETIMES WE GET SO CAUGHT UP WITH THE EXCITEMENT OF BEING PART OF THE GREAT INFORMATION SUPERHIGHWAY ABOUT BUYING A CDROM ABOUT TELLING OUR VCRS TO TAPE A PUBLICTELEVISION PROGRAM ON ONE CHANNEL WHILE WE WATCH THE MENENDEZ BROTHERS ON COURT TV THAT WE DON'T RECOGNIZE THE IMPORTANT MOMENTS IN OUR LIVES THEY'RE NOT ALWAYS SUBTLE BUT FOR ONE REASON OR ANOTHER EVEN IN THIS AGE OF TOTAL RECALL WE MISS THEM BUT MORE AND MORE YOUNG PEOPLE LIKE ME ARE EXPERIENCING WHAT COULD ONLY BE CALLED A FRANK SINATRA MOMENT I WAS STROLLING DOWN 34TH STREET WHICH WAS CROWDED WITH HOLIDAY SHOPPERS I WALKED PAST MACY'S AND WITHOUT THINKING WANDERED INTO A FESTIVELY DECORATED MUSIC STORE IT HAD LUTHER VANDROSS BONO GLORIA ESTEFAN ALL SINGING WITH FRANK SINATRA ON HIS NEW ALBUM DUETS CAPITOL 1299 CURRENTLY NO 16 ON BILLBOARD'S TOP200 ALBUMS CHART INEXPLICABLY I BOUGHT IT I WAS SITTING IN A SUBWAY CAR AND HEADING HOME BEFORE I REALIZED WHAT I HAD DONE IT WAS AN EPIPHANY MUCH LIKE THE MOMENT I FOUND MYSELF SUGGESTING TO A FRIEND THAT SHE BUY A COMPUTER BEFORE THE END OF THE YEAR FOR TAX REASONS YOU MUST UNDERSTAND MY CONFUSION FOR ME FRANK SINATRA REPRESENTED EVERYTHING THAT HAPPENED THIS CENTURY BEFORE I WAS BORN EVERYTHING I NEVER EXPERIENCED AND WOULD NEVER UNDERSTAND LIKE EISENHOWER OR GIRDLES OR THE EXCITEMENT OVER COLOR TELEVISION DIDN'T WE ALWAYS HAVE COLOR TELEVISION FOR THE LONGEST TIME I THOUGHT FRANK SINATRA WAS BLACK AND WHITE NO COLORS NO YOUTH THE KIND OF THING ONLY OLD MEN AT THE LOCAL VETERANS OF FOREIGN WARS CHAPTER AND THEIR BLUEHAIRED WIVES WOULD BUY TICKETS TO SEE WEEKS IN ADVANCE THEY'D STEER THEIR SHIPSIZED GASGUZZLING AUTOMOBILES TO THE SHOW FROM THE CONGESTED SUBURBAN MALL PARKING LOTS WITH NEW YORK NEW YORK BLASTING AT EARPIERCING VOLUMES THEY'D BE WEARING OLD SHINY SUITS AND THEIR BEST TIES THEY'D BE REMINISCING ABOUT BOB HOPE'S PERFORMANCES FOR THE TROOPS SOMEWHERE IN THE SOUTH PACIFIC AND THEY COULD REMEMBER THE DAY JFK WAS KILLED FORGET THAT THEY COULD REMEMBER WHAT THEY WERE DOING THE DAY PEARL HARBOR WAS BOMBED THERE ARE DOZENS OF TIMELIFE BOOKS DEDICATED TO SUMMARIZING THE IMPORTANT HISTORICAL EVENTS IN THE LIVES OF FRANK SINATRA FANS FRANK SINATRA FANS BELONG TO THE ROTARY CLUB AND WEAR TIE CLIPS AT SOME POINT IN THEIR LIVES POLYESTER SUITS WERE ACCEPTABLE BUT FEMALE MANAGERS WERE NOT FOR THEM CIGARETTES MAY HAVE SMELLED BAD BUT THEY DIDN'T KILL YOU AND NEITHER DID NUCLEAR ENERGY ELECTRIC POWER LINES OR FRENCH FRIES THEY DIDN'T GROW UP KNOWING ABOUT COUCH POTATOES OR FOR THAT MATTER SPANDEX SCANDAL FOR THEM WAS A MINISKIRT NOT MADONNA ACTING OUT SEXUAL FANTASIES IN FRONT OF MILLIONS OF STRANGERS I DON'T DRESS LIKE THEM I DON'T ACT LIKE THEM I DON'T DRINK WHAT THEY DRINK FRANK SINATRA FANS AND I HAVE NOTHING IN COMMON MUSIC IS THAT WAY IT IDENTIFIES GENERATIONS YOU ARE WHAT YOU LISTEN TO THAT'S WHY I'M SO TERRIFIED TO BE THE OWNER OF A FRANK SINATRA CD IT'S LIKE LEARNING HOW TO MIX A MARTINI OR PUTT IT'S LIKE GOING TO THE DEALERSHIP AND RECOGNIZING THE PRACTICALITY OF AN OLDSMOBILE OR EVEN WORSE A STATION WAGON IT'S LIKE WEARING TIES EVERY DAY AND BUYING AN APPOINTMENT BOOK IT'S LIKE TRADING IN YOUR BACKPACK FOR A BRIEFCASE IT'S LIKE HAVING JUST ONE DRINK WHEN SOMEONE INVITES YOU TO HAVE A DRINK IT'S LIKE GOING TO WORK EVERY DAY AND ONE DAY FINDING YOURSELF SAYING YOU HAVE TO LEARN HOW TO NETWORK IT'S LIKE FINALLY PAYING OFF ALL OF YOUR STUDENT LOAN IT'S LIKE LEARNING WHAT IRA MEANS WHY POINTS ARE NOT JUST BAD MARKS ON A LICENSE BUT COSTLY FOR A MORTGAGE AS WELL AND WORRYING ABOUT YOUR CREDIT RECORD IT'S DISCOVERING HOW YOU CAN PUT A YEAR'S WORTH OF RELAXATION INTO A TWOWEEK VACATION IT'S GOING TO BED AT THE SAME TIME AND GETTING UP AT THE SAME TIME EVERY DAY OLD BLUE EYES SCARES THE BEJEEZUS OUT OF ME BUT HERE I AM LISTENING TO FRANK SINATRA U2'S BONO SINGS I'VE GOT YOU UNDER MY SKIN WITH THE CHAIRMAN OF THE BOARD IT'S LIKE WATCHING MICK JAGGER DANCING A POLKA WITH A MARTINI IN HIS HAND I CAN'T HELP IT I HAVEN'T EVEN HIT 30 YET AND I AM GETTING OLD I AM TERRIFIED THAT I AM REACHING THE POINT WHERE I MIGHT WITHOUT THINKING MENTION BOB DYLAN AND SINATRA IN THE SAME SENTENCE BUT IT ISN'T ALL BAD ESPECIALLY IF YOU COMPARE IT TO MY FIRST SIP OF SCOTCH A TASTE FOR SCOTCH IS ACQUIRED MY DAD ONCE SAID I THINK THE SAME GOES FOR SINATRA SO I'M NOT BREAKING OUT SCOTCH AND THE SINATRA CD EVERY TIME FRIENDS STOP BY I'M NOT READY FOR THAT BUT I DO SAMPLE THE CD ONCE IN A WHILE I DON'T KNOW HOW TO DANCE TO IT BUT IT'S GOOD BACKGROUND MUSIC WHEN I'M READING THE SUNDAY PAPER WHAT'S MORE IN UNDER MY SKIN SINATRA ACTUALLY SOUNDS BETTER THAN BONO WHO IS ONE OF MY FAVORITE HIPSTERS BUT SOUNDS LIKE HE IS MOANING FOR MOST OF THE SONG BESIDES I UNDERSTAND NONE OF THE ARTISTS ACTUALLY SANG WITH SINATRA IN THE STUDIO THEY SANG OVER SPECIAL PHONE LINES I CAN RELATE TO THAT DUETS ON AN ANSWERING MACHINE COOL MR VOGEL WRITES THE JOURNAL'S CREDIT MARKETS COLUMN 9401190108 940119 RULE OF LAW LAWRENCE WALSH'S FINAL ABUSE OF POWER BY MARK J BREDEMEIER THE PROVERB SAYS A GOOD NAME IS RATHER TO BE CHOSEN THAN GREAT RICHES THIS BELIEF IS EMBEDDED IN ENGLISH AND AMERICAN NOTIONS OF FAIRNESS DEFAMATION DUE PROCESS AND PRESUMPTION OF INNOCENCE IT IS THE PREMISE FOR OUR JUSTICE SYSTEM'S HALLMARK THAT NO INDIVIDUAL CAN BE PRONOUNCED GUILTY OF A CRIME BY HIS GOVERNMENT UNLESS HE IS INDICTED TRIED AND CONVICTED SADLY THIS PRINCIPLE WAS UTTERLY ABANDONED IN YESTERDAY'S RELEASE OF LAWRENCE WALSH'S FINAL REPORT ON IRANCONTRA FOR SEVEN YEARS MR WALSH HAS BEEN INVESTIGATING THE 1985 STRATEGIC INITIATIVE INVOLVING ARMS TRANSFERS TO IRAN AND THE UNAUTHORIZED DIVERSION OF FUNDS FROM THIS INITIATIVE TO SUPPORT NICARAGUAN FREEDOM FIGHTERS YESTERDAY HIS REPORT ACCUSES FALSELY UNFAIRLY AND WITHOUT PROOF RONALD REAGAN GEORGE BUSH FORMER ATTORNEY GENERAL ED MEESE AND OTHER FORMER CABINET OFFICIALS OF A CONVOLUTED CONSPIRACY EVEN THE FEDERAL APPEALS COURT ORDERING RELEASE OF THE REPORT SOUGHT TO DISTANCE ITSELF FROM A MASSIVE DOCUMENT DISCLOSING SECRET GRANDJURY MATERIAL AND RIFE WITH ACCUSATIONS OF GUILT OF CRIMINAL CONDUCT AGAINST PERSONS NEVER INDICTED OR CONVICTED THE COURT AGREED THAT MR MEESE'S AND OTHERS' DUEPROCESS ARGUMENTS WERE POWERFUL AND OF CONSIDERABLE MERIT AND THAT RELEASE OF THIS DEFAMATORY REPORT WOULD COMPROMISE THE RIGHTS OF THESE PUBLIC SERVANTS HOW THEN COULD MR WALSH'S MUSINGS BE GIVEN JUDICIAL SANCTION THE SPECIAL PANEL IN A LENGTHY OPINION CONFESSED THAT THIS INDEPENDENT COUNSEL WAS AN OFFICER PERFORMING AN EXECUTIVE FUNCTION ALMOST ENTIRELY WITHOUT OVERSIGHT FROM THE EXECUTIVE BRANCH OF GOVERNMENT MOREOVER AS A RESULT OF THE SUPREME COURT'S 1988 DECISION IN MORRISON V OLSON UPHOLDING THE CONSTITUTIONALITY OF THE INDEPENDENT COUNSEL MR WALSH COULD NOT BE SUPERVISED BY CONGRESS OR THE JUDICIARY IN OTHER WORDS THIS PROSECUTOR ANSWERS TO NO ONE THE COURT MEEKLY CONCLUDED THAT UNFORTUNATELY FOR THE TRADITION OF FAIRNESS MR WALSH'S FALSE AND UNSUBSTANTIATED CRIMINAL ALLEGATIONS WILL BE AIRED ALL THE COURT COULD DO WAS PROMISE TO REMOVE ITS IMPRIMATUR FROM HIS CHARGES SO AS TO ALLEVIATE ANY MISCONCEPTION THAT THESE UNLITIGATED ACCUSATIONS OBTAINED JUDICIAL APPROVAL BUT FAIRNESS AND THE DUEPROCESS CLAUSE OF THE CONSTITUTION ENTITLE AMERICAN CITIZENS EVEN THOSE POOR SOULS CAUGHT UP IN THE POLITICAL MACHINATIONS OF WASHINGTON TO MORE WE HAVE CLEAR AND LONGSTANDING RULES ENSURING THE SECRECY OF GRANDJURY PROCEEDINGS AND CRIMINAL INVESTIGATIONS WE HAVE PRECEDENTS THAT PROHIBIT HIT AND RUN CRIMINAL REPORTS THAT FAIL TO INDICT AND OFFER NO AUTHORITATIVE FORUM FOR THE VINDICATION OF THE ACCUSED THE SUPREME COURT HELD IN 1971 THAT WHERE A PERSON'S GOOD NAME REPUTATION HONOR OR INTEGRITY IS AT STAKE BECAUSE OF WHAT THE GOVERNMENT IS DOING TO HIM NOTICE AND AN OPPORTUNITY TO BE HEARD ARE ESSENTIAL EARLIER THE COURT INSISTED THAT THIS OPPORTUNITY BE MORE THAN A MERE GESTURE YET THE TARGETS OF MR WALSH'S INVESTIGATION WERE NEVER GIVEN A PROPER OPPORTUNITY TO DEFEND THEIR REPUTATIONS IN THESE STARCHAMBER PROCEEDINGS AS ONE OF A TEAM OF PROBONO LAWYERS WORKING ON BEHALF OF MR MEESE I AM ACUTELY AWARE OF THE INJUSTICE OF THE INVESTIGATION AND ITS PUBLISHED REPORT ALTHOUGH MR MEESE WAS CHARGED WITH MASTERMINDING SOME PERVASIVE COVERUP OF THE ALLEGED IRANCONTRA SCHEME HE WAS NOT ALLOWED TO READ THE ENTIRE REPORT IN ADVANCE OF ITS PUBLICATION OR PHOTOCOPY PAGES OF THE REPORT THAT PERTAINED TO HIM HE WAS DENIED ACCESS TO COURT FILINGS INCLUDING MOTIONS AND PAPERS THAT AFFECTED HIS RIGHTS HE COULD NOT RELY ON GRANDJURY EVIDENCE OR CONFRONT HIS ACCUSERS AND HE WAS TOLD BY THE COURT HE COULDN'T EVEN TALK TO OTHERS WITH WHOM HE WAS ALLEGED TO HAVE CONSPIRED THUS THE INDEPENDENT COUNSEL PRONOUNCED ED MEESE GUILTY OF CRIMES WHILE SKIPPING SUCH INCONVENIENCES AS INDICTMENT AND TRIAL AS THE HIGHESTRANKING LAW OFFICER IN THE COUNTRY THE FORMER ATTORNEY GENERAL COULD NOT HAVE DREAMED OF CARRYING OUT SUCH A BIASED PROSECUTION THE WALSH ACCOUNT IS A BIZARRE BLEND OF FANTASY AND CONTRADICTION IT ADMITS THE INVESTIGATION FAILED TO UNCOVER SUFFICIENT EVIDENCE TO JUSTIFY PROSECUTION OF SOME CLAIMS AND THAT CHARGES AGAINST ED MEESE COULD NOT BE PROVED BEYOND A REASONABLE DOUBT WITH A COST IN EXCESS OF 40 MILLION THIS REPORT REPRESENTS A FEEBLE ATTEMPT TO DIVERT ATTENTION FROM THE INDEPENDENT COUNSEL'S DISMAL IRANCONTRA CONVICTION RECORD AND FROM HIS OWN CULPABILITY FOR VIOLATING RULES OF PROFESSIONAL RESPONSIBILITY AND FEDERAL LAW INCLUDING CRIMINAL PROCEDURAL REQUIREMENTS AND STATUTES PROTECTING CLASSIFIED DOCUMENTS AT THE CONCLUSION OF THE WATERGATE PROCEEDINGS IN 1975 LEON JAWORSKI THE FOREFATHER OF INDEPENDENT COUNSELS ISSUED A WATERGATE PROSECUTION FORCE REPORT IN IT HE WARNED THAT THE MOST IMPORTANT ELEMENT IN TERMS OF OUR CONSTITUTIONAL SYSTEM OF GOVERNMENT IS THE NOTION OF FUNDAMENTAL FAIRNESS FOR THOSE WHO AFTER INVESTIGATION HAVE NOT BEEN CHARGED WITH ANY CRIMINAL MISCONDUCT WHERE NO SUCH CHARGES ARE BROUGHT IT WOULD BE IRRESPONSIBLE UNETHICAL AND AN ABUSE OF POWER TO ISSUE A REPORT SUGGESTING CRIMINAL CONDUCT ON THE PART OF AN INDIVIDUAL WHO HAS NO EFFECTIVE MEANS OF CHALLENGING SUCH ALLEGATIONS BUT THE INDEPENDENT COUNSEL LAW AS DRAFTED IN 1978 AND REENACTED IN THE EARLY 1980S FOOLISHLY PERMITS A FINAL REPORT TO BE ISSUED EVEN WHEN NO INDICTABLE WRONGDOING HAS BEEN DISCOVERED THUS INVITING ACCUSATION AND INNUENDO AND DENYING THOSE ACCUSED A CHANCE TO RESPOND IN AN AUTHORITATIVE FORUM FOR ALL MR WALSH'S EXCESSIVE ZEAL IN THESE INVESTIGATIONS THE LAW ITSELF SHARES PART OF THE BLAME FOR THIS LAST PUBLIC ASSAULT ON HONORABLE MEN THOSE WHO HAVE QUESTIONED MORRISON V OLSON AND THE CONSTITUTIONALITY OF INDEPENDENT COUNSELS AND THOSE WHO NOW DISPUTE THE ADVISABILITY OF RENEWED INDEPENDENT COUNSEL LEGISLATION HAVE BEEN VINDICATED BY THIS REPORT AND THE IRRESPONSIBLE INVESTIGATION LEADING UP TO IT THE WHOLE MESS CONSTITUTES AN ABUSE OF POWER OF THE FIRST ORDER EVEN THE SPECIAL IRANCONTRA COURT ACKNOWLEDGED THAT ITS DECISION TO RELEASE THIS REPORT MAY BE A DANGEROUS PRECEDENT AS JUSTICE SCALIA'S DISSENT IN MORRISON V OLSON POINTED OUT WHILE MANY POLITICAL POWER STRUGGLES WIND THEIR WAY THROUGH THE JUDICIARY CLAD IN SHEEP'S CLOTHING THE INDEPENDENT COUNSEL IS A WOLF THAT COMES AS A WOLF SUCH UNBRIDLED PROSECUTORIAL POWER HAS NO PLACE IN OUR AMERICAN SYSTEM OF SEPARATED AND DIVISIBLE POWERS MR BREDEMEIER IS GENERAL COUNSEL FOR LANDMARK LEGAL FOUNDATION WHICH REPRESENTS FORMER ATTORNEY GENERAL EDWIN MEESE IN THE IRANCONTRA PROCEEDINGS 9401190107 940119 POSTCARD FROM THE EPICENTER BY BEN STEIN HERE ARE SOME THINGS THAT HAPPENED IN AND AROUND THE GREAT EARTHQUAKE OF 1994 CIRCA LOS ANGELES AND MALIBU CALIF MY SON MR PERFECT A SIXYEAROLD ANGEL SLEPT THROUGH THE EARTHQUAKE ON MONDAY MORNING WHEN HE AWOKE HE WAS STUNNED THAT HIS CARTOONS WERE NOT ON AND WANTED TO KNOW WHY IF I LOVED HIM I COULDN'T TURN THE POWER BACK ON G A MADAM WHO'S BEEN UPSET FOR MONTHS AT ALL OF THE ATTENTION THAT HEIDI FLEISS GOT AND WHO SEEMS TO WANT ME TO GHOSTWRITE HER AUTOBIOGRAPHY WHICH I'M NOT GOING TO DO CALLED FOUR TIMES TO TELL ME THAT THE EARTHQUAKE DID NOT SCARE HER AND THAT SHE WAS READY TO BE A MOVIE STAR AND THAT THE PROOF WAS THAT SHE HAD AN EARTHQUAKE PREPAREDNESS KIT IN HER CAR KGB WHICH IS THE REAL NAME OF A ROCK RADIO STATION IN SAN DIEGO THAT I GET CLEARLY IN MALIBU BROADCAST '60S ROCK SONGS FOR TWO HOURS MONDAY MORNING REPORTED ON OUTSTANDING SURF CONDITIONS AND DID NOT ONCE MENTION THE EARTHQUAKE IN ITS SOMEWHAT LARGER NEIGHBOR TO THE NORTH MY ASSISTANT K NOTIFIED ME THAT SHE WAS REALLY ANNOYED BECAUSE A CASTING SESSION FOR LA LAW WHICH WAS SURELY GOING TO MAKE HER INTO A STAR HAD BEEN CANCELED BECAUSE OF THE EARTHQUAKE WHICH REALLY MADE HER WANT TO CRY T A FORMER COLLEAGUE WHO NOW LIVES IN THE SAN FERNANDO VALLEY TOLD ME THAT HER WHOLE APARTMENT HAD BEEN TRASHED AND THAT EVERYTHING SHE HAD WAS RUINED AND SAID THAT SHE WOULD PROBABLY HAVE TO GO TO IDAHO TO SKI TO GET OVER THE PAIN SHE WAS CRYING ON SUNSET STRIP NEAR THE CHATEAU MARMONT HOTEL TWO CONSCIENTIOUS HOOKERS WHO ENDLESSLY PATROL A CERTAIN STRETCH OF THE SIDEWALK WERE ON THE JOB EVEN AFTER A MAJOR EARTHQUAKE AND A DUSKTODAWN CURFEW SEVERAL HOURS AFTER DUSK WINKING AND SMILING AT THE PASSERSBY THE BIG PARTY TO MARK THE REOPENING OF THE TOWN'S PREMIER RESTAURANT MORTON'S A 1000APLATE DINNER TO AID AN ENVIRONMENTAL GROUP WAS CANCELED SAVING YOURS TRULY 2000 MR PERFECT LEARNED THAT HE HAD SOME OLD EPISODES OF SONIC THE HEDGEHOG ON TAPE THAT COULD TIDE HIM OVER ONCE WE DROVE 40 MILES TO OUR HOUSE IN TOWN WHICH HAD POWER BUT NO CABLE HE WAS INTENSELY RELIEVED TODAY AS I WRITE THIS ON THE DAY AFTER THE QUAKE IT IS PAINFULLY HOT JOHN COYNE CALLED ME FROM CHICAGO TO TELL ME THAT I MIGHT FEEL BETTER KNOWING THAT IT WAS 20 BELOW ZERO ON MICHIGAN AVENUE THE FULL COMPLEMENT OF HOOKERS WAS OPERATING ON SUNSET BOULEVARD MY AGENT CALLED TO TELL ME THAT SHE NEEDED MORE DEMO TAPES IT'S HARD TO BELIEVE THAT PEOPLE ACTUALLY HAVE DIED TRAGIC PREMATURE DEATHS IN A PLACE LIKE THIS BUT THEY HAVE MR STEIN IS A WRITER AND ACTOR 9401190106 940119 LETTERS TO THE EDITOR NO WAY TO TREAT A LADY I TAKE EXTREME EXCEPTION TO THE NASTYMINDED COMMENTS MADE BY GLORIA STEINEM CONCERNING THE BEHAVIOR OF TEXAS SEN KAY BAILEY HUTCHISON IN YOUR DEC 14 PAGEONE ARTICLE OTHER NATIONS ELECT WOMEN TO LEAD THEM SO WHY DOESN'T US WHILE SEN HUTCHISON'S POLITICAL PHILOSOPHY AND HER LEGAL DIFFICULTIES TEND TO GIVE ONE PAUSE IT IS MORE ALARMING TO WATCH MS STEINEM A LEADER OF SOCALLED STRONG AND INDEPENDENT WOMEN FULMINATING IN A MOST UNDIGNIFIED FASHION ABOUT ANOTHER STRONG AND INDEPENDENT WOMAN WHOSE ONLY FAULT OTHER THAN THOSE MENTIONED ABOVE IS OF HAVING COMMITTED THE UNPARDONABLE SIN FROM A FEMINIST PERSPECTIVE OF HAVING THE AUDACITY TO POSSESS A DIFFERENT POINT OF VIEW FROM THAT OF MS STEINEM AND HER DEVOTEES BUT IF ONE EXAMINES MS STEINEM'S MALICIOUS DEPICTION OF SEN HUTCHISON AS A FEMALE IMPERSONATOR MORE CLOSELY FOR ITS SEMANTIC IMPLICATIONS A NOTESPECIALLYORIGINAL ASPECT BECOMES FAR MORE EVIDENT NAMELY THE TRACES OF A FAR EARLIER AND MORE PERNICIOUS MINDSET SHARED BY THOSE WHO PARTICIPATED IN THE STRUGGLE FOR WOMEN'S SUFFRAGE THE PUTATIVE MORAL SUPERIORITY OF WOMEN WITH MEN AS BASE SINFUL CREATURES READY TO UNDERMINE ALL THE HARD WORK OF WOMEN AT THE FIRST OPPORTUNITY ALLOWING WOMEN TO VOTE SO THEY SAID WOULD SERVE AS A TEMPERING INFLUENCE UPON MALE EVIL A RATHER QUAINT NOTION SEVERELY UNDERCUT BY THE TENDENCY UNTIL VERY RECENTLY TOWARD VERY SIMILAR VOTING PATTERNS IN BOTH MEN AND WOMEN MS STEINEM AND HER MOVEMENT ARE THE CARRIERS OF THIS FEMINIST ARGUMENT INTO THE PRESENT DAY IN SUGGESTING THAT THERE IS SOMETHING SINISTER IN PRESUMED POLITICAL CROSSDRESSING MS STEINEM PERPETUATES THE VERY MYTHS ABOUT SEPARATE AND APPROPRIATE SPHERES OF BEHAVIOUR BASED SOLELY UPON GENDER THAT HER IDEOLOGICAL ENEMIES MIGHT USE AGAINST HER MORE OUTRAGEOUS HOWEVER IS MS STEINEM'S BELIEF THAT WOMEN CANNOT TRUST ONE OF THEIR OWN WHO LOOKS LIKE US AND THINKS LIKE THEM WHAT CAN ONE MAKE OF THIS STATEMENT COMING AS IT DOES FROM A WOMAN WHO BY HER OWN ADMISSION SPENT FIVE YEARS DATING A MAN WHO TREATED HER BADLY AND WHO WOULD NOT END THE RELATIONSHIP BECAUSE SHE DID NOT WANT TO EXIST WITHOUT A MAN IN HER LIFE WHILE SIMULTANEOUSLY ACTING AS THE SPOKESWOMAN FOR AN ORGANIZATION DEDICATED TO THE LIBERATION OF WOMEN BY ALL ACCOUNTS SEN HUTCHISON APPEARS TO HAVE HER PERSONAL LIFE UNDER CONTROL AT THE VERY LEAST HER IDEOLOGY UNLIKE THAT OF MS STEINEM IS MORE OR LESS CONSISTENT IF MS STEINEM WANTS TO KNOW WHY MANY WOMEN HAVE RECENTLY BEEN REJECTING THE LABEL OF FEMINISM WHILE STILL RETAINING THE DESIRE TO WORK HARD AND TO ACHIEVE SUCCESS BY MASCULINE STANDARDS ONE MIGHT RESPECTFULLY SUGGEST THAT THE REDOUBTABLE MS STEINEM EXAMINE THE NOTSOSUBTLE STENCH OF HYPOCRISY THAT ENVELOPS HER MOVEMENT THE SUGGESTION THAT CLINTON'S FOCUS ON DOMESTIC CONCERNS MAY MEAN THAT WOMEN CAN OVERCOME THE COMMANDER IN CHIEF SYNDROME IS NONSENSE AND THE DEBUNKING OF THE PARLIAMENTARY SYSTEM EXPLANATION OF WHY NATIONS INCLUDING SOME THAT TREAT WOMEN AS CHATTEL HAVE CHOSEN WOMEN AS CHIEF EXECUTIVES IS WISHFUL THINKING THE FINAL ISSUE IS NOT WHETHER WOMEN CAN BE EFFECTIVE MAYORS GOVERNORS OR LEGISLATORS IT IS WHETHER THEY CAN SERVE AS COMMANDER IN CHIEF CAN A WOMAN SEND OTHER WOMEN'S SONS TO DIE IN BATTLE YES DO A WHOLE LOT OF ORDINARY VOTERS THINK SO NO IN A PARLIAMENTARY SYSTEM THE WOMAN SELECTED IS PERSONALLY KNOWN TO THOSE WHO CHOOSE HER DID ANY MEMBER OF THE BRITISH PARLIAMENT DOUBT THAT MAGGIE THATCHER COULD SEND OTHER WOMEN'S SONS OUT TO DIE I THINK NOT IN A PRESIDENTIAL SYSTEM WHERE THE COMMANDER IN CHIEF IS CHOSEN BY ORDINARY FOLK IN THE BEAUTY SHOPS AND BARBERSHOPS IN THE BRIDGE CLUBS AND BARS THERE IS GREAT THOUGH MISTAKEN DOUBT WHEN A WOMAN IS CHOSEN PRESIDENT IT WILL BE A WOMAN WHO UNLIKE BILL CLINTON IS RESPECTED FOR HER FOREIGN NOT HER DOMESTIC POLICY POSITION 9401190105 940119 FINANCING BUSINESS CORNING INC CORNING INC CORNING NY SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER EIGHT MILLION COMMON SHARES UP FROM 67 MILLION THE COMPANY ORIGINALLY PLANNED CORNING WHICH HAS BUSINESSES IN SPECIALTY MATERIALS CONSUMER HOUSEWARES TELECOMMUNICATIONS AND LABORATORY SCIENCES SAID IT DECIDED TO INCREASE THE OFFERING'S SIZE AFTER AN ASSESSMENT OF MARKET CONDITIONS CORNING WILL USE PROCEEDS FROM THE OFFERING TO FINANCE ITS 1085 MILLION PART OF THE PURCHASE OF NORTHERN TELECOM LTD'S OPTICAL FIBER AND CABLE BUSINESSES THE TOTAL PURCHASE PRICE IS 130 MILLION BUT CORNING IS BUYING THE BUSINESSES WITH ITS SIECOR JOINT VENTURE SIEMENS CORP THE JOINT VENTURE PARTNER AND A UNIT OF SIEMENS AG WILL PAY THE REMAINDER CORNING ALSO WILL USE MONEY FROM THE OFFERING TO PAY 131 MILLION FOR ENDING A JOINT VENTURE WITH VITRO SA OF MEXICO GOLDMAN SACHS AND CO IS THE LEAD UNDERWRITER 9401190104 940119 LEGAL BEAT TONYA HARDING WILL HAVE LEGAL PRECEDENT ON HER SIDE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL IT MAY BE IMPOSSIBLE TO KICK TONYA HARDING OFF THE US OLYMPIC TEAM MS HARDING THE US FIGURE SKATING CHAMPION HASN'T BEEN ACCUSED OF WRONGDOING IN THE ATTACK ON RIVAL SKATER NANCY KERRIGAN BUT COMMITTEE OFFICIALS HAVE SAID THAT CONCERNS ABOUT THE IMPACT ON THE COMPETITION COULD BE GROUNDS FOR REMOVING MS HARDING FROM THE TEAM FEAR OF LITIGATION HOWEVER HAS MADE IT MUCH TOUGHER FOR AMATEUR SPORTS ORGANIZATIONS TO BAR WORLDCLASS ATHLETES FROM COMPETING THESE PRECEDENTS ARE LIKELY TO HAVE AN IMPACT ON THE US OLYMPIC COMMITTEE'S REVIEW OF MS HARDING'S STATUS TO COMPETE IN THE WINTER OLYMPICS NEXT MONTH ORDINARILY NONPROFESSIONAL SPORTS GROUPS HAVE PLENTY OF LEEWAY IN SETTING RULES FOR WHO CAN COMPETE SUCH AS SUSPENDING PLAYERS ACCUSED OF GAMBLING OR DRUG VIOLATIONS BUT AS THE WINNERS' STAKES HAVE GROWN A GOLD MEDAL FOR INSTANCE BRINGS SEVENFIGURE ENDORSEMENT FEES SO HAVE THE LEGAL PROTECTIONS FOR ATHLETES FACING PENALTIES THAT COULD JEOPARDIZE THEIR CAREERS EVEN IF MS HARDING WAS CRIMINALLY CHARGED IN CONNECTION WITH THE ATTACK THE OLYMPIC COMMITTEE COULD FACE A TOUGH COURT BATTLE IF IT BARRED HER FROM COMPETING MANY SPORTSLAW SPECIALISTS SAY AS AN ATHLETE DEPRIVED OF PARTICIPATING IN PERHAPS THE GREATEST OPPORTUNITY OF HER CAREER MS HARDING WOULD HAVE STRONG LEGAL CLAIMS THE LAWYERS SAY TO SUE FOR LOST EARNINGS INTERFERENCE WITH FUTURE BUSINESS DEALS AND EVEN CLAIMS OF IRREPARABLE HARM IF THE COMMITTEE SEEKS TO DISQUALIFY MS HARDING THEY'RE JUST BUYING A LAWSUIT SAYS JEFFREY IZENMAN AN ATTORNEY IN THE CHICAGO OFFICE OF KATTEN MUCHIN & ZAVIS SUCH A SUIT COULD PROVE COSTLY IN ONE OF THE FEW SUITS OVER AN OLYMPIC CONTENDER'S RIGHT TO COMPETE TRACK STAR BUTCH REYNOLDS WON A 274 MILLION AWARD IN DECEMBER 1992 FROM THE INTERNATIONAL AMATEUR ATHLETIC FEDERATION THE FEDERAL JUDGE IN THAT CASE RULED THAT WHEN AN ATHLETE'S LIVELIHOOD IS AT STAKE A PRIVATE SPORTS ORGANIZATION MUST FOLLOW THE SAME DUEPROCESS REQUIREMENTS THAT BAR THE GOVERNMENT FROM UNFAIRLY TAKING A PERSON'S PROPERTY MR REYNOLDS WAS SUSPENDED FROM COMPETING AFTER HE ALLEGEDLY TESTED POSITIVE FOR STEROIDS IN 1990 BUT THE COURT FOUND THAT THE TESTS WERE FLAWED AS MR REYNOLDS HAD MAINTAINED AND IT ORDERED THE INTERNATIONAL TRACK ORGANIZATION TO PAY DAMAGES FOR BREACHING ITS CONTRACTUAL OBLIGATIONS TO MR REYNOLDS THE COURT SAID THE ORGANIZATION HAD VIOLATED MR REYNOLDS' RIGHTS BY NOT GRANTING A FULL AND FAIR OPPORTUNITY FOR THE DISPUTED STEROID TESTS TO BE RECONSIDERED THE EVIDENCE BEFORE THE COURT ESTABLISHES THAT THE INTERNATIONAL AMATEUR ATHLETIC FEDERATION'S GOAL THROUGHOUT THESE PROCEEDINGS WAS AND REMAINS SOLELY TO PROTECT ITS REPUTATION SAID US DISTRICT JUDGE JOSEPH KINNEARY IN HIS RULING THE COLUMBUS OHIO JUDGE'S DECISION WHICH HAS BEEN APPEALED CALCULATED COMPENSATORY DAMAGES AT 68 MILLION BASED ON MR REYNOLDS PAST ENDORSEMENT CONTRACTS AND PUNITIVE DAMAGES OF 205 MILLION PAUL WEILER A HARVARD LAW SCHOOL PROFESSOR SPECIALIZING IN SPORTS LAW SAID AFTER THE BUTCH REYNOLDS DECISION THE OLYMPIC COMMITTEE WILL THINK TWICE ABOUT KEEPING MS HARDING FROM COMPETING DAVID YOUNG AN ATTORNEY FOR MR REYNOLDS SAID THE LESSON FOR SPORTS ORGANIZATIONS IN THE REYNOLDS CASE SHOULD BE THAT US COURTS PUT A PREMIUM ON PROTECTING INDIVIDUAL ATHLETES' RIGHTS AMATEUR SPORTS ORGANIZATIONS CAN BAR ATHLETES FROM PARTICIPATING IF THEY PROTECT THE ATHLETES' DUE PROCESS RIGHTS AND FOLLOW FAIR PROCEDURES SAID MR YOUNG IN MS HARDING'S CASE THE MAIN QUESTION FACING OLYMPIC OFFICIALS AT THIS POINT IS WHETHER THE TAINT OF SUSPICION IS ENOUGH TO KEEP HER FROM COMPETING MS HARDING'S BODYGUARD SHAWN ERIC ECKARDT HAS BEEN ARRESTED FOR ALLEGEDLY ARRANGING THE ATTACK AND QUESTIONS HAVE BEEN RAISED ABOUT MS HARDING'S EXHUSBAND'S POSSIBLE LINKS TO THE PLOT THE EXHUSBAND JEFF GILLOOLY HASN'T BEEN CHARGED AND THROUGH HIS ATTORNEY HAS DENIED HAVING ANY ROLE IF THE OLYMPIC COMMITTEE VOTED TO BAR MS HARDING HER FIRST STEP PROCEDURALLY WOULD BE AN ARBITRATION HEARING PROVIDED FOR UNDER A FEDERAL AMATEURSPORTS LAW AT THAT PROCEEDING ARBITRATORS WOULD HAVE TO LOOK CLOSELY AT THE SPECIFIC ALLEGATIONS THAT LED THE COMMITTEE TO ITS DECISION ATTORNEYS SAID THAT EVEN IF ARBITRATORS AGREED WITH THE COMMITTEE MS HARDING WOULD BE ENTITLED TO GO TO COURT TO SEEK IMMEDIATE RECOURSE SUCH AS AN INJUNCTION BLOCKING THE COMMITTEE FROM BARRING HER PARTICIPATION A COURT WOULD HAVE TO WEIGH THE COMMITTEE'S CONCERNS AGAINST THE OPPORTUNITIES MS HARDING WOULD LOSE THE IMAGE PROBLEM RAISED BY THE OLYMPICS COMMITTEE IS VERY SPECULATIVE ON THE OTHER SIDE OF THE COIN IS THE HUGE COST TO THE INDIVIDUAL SAYS PROF WEILER OF HARVARD IN A SITUATION SUCH AS MS HARDING'S A COURT WOULD CONSIDER THE FACT THAT SOMEONE HAS INVESTED YEARS OF THEIR LIFE IN THE SPORT YOU HAVE A RIGHT TO EXPECT A RETURN ON THAT INVESTMENT UNLESS THERE'S SOME VERY GOOD REASON TO TAKE IT AWAY FROM YOU SAYS PROF WEILER IN ADDITION TO ANY POSSIBLE COMMERCIAL ENDORSEMENTS AN OLYMPIC MEDAL WOULD INCREASE HER FUTURE OPPORTUNITIES TO SKATE PROFESSIONALLY AND TO GARNER PERSONAL APPEARANCE FEES ALREADY HOWEVER THE VALUE OF ANY MEDAL MS HARDING MIGHT WIN AT THE OLYMPICS HAS DROPPED AGENTS AND SPORTS LAWYERS SAY SHE IS UNLIKELY TO RECEIVE ANYWHERE NEAR THE LEVEL OF ENDORSEMENT OFFERS SHE MIGHT OTHERWISE HAVE EXPECTED THAT FACT COULD MAKE IT TOUGHER FOR MS HARDING TO PROVE SUBSTANTIAL ECONOMIC HARM THE COMMITTEE'S ATTORNEYS COULD SAY THAT THE VALUE OF ANY OLYMPIC WIN BY HARDING IS ZERO EVEN IF THEY LET HER COMPETE SAYS MR IZENMAN OF KATTEN MUCHIN IN CHICAGO EVEN SO MS HARDING COULD ARGUE THAT A COURT SHOULD CLEAR THE WAY FOR HER TO COMPETE IF ONLY BECAUSE SHE WOULD BE IRREPARABLY HARMED BY NOT BEING ABLE TO PARTICIPATE IN THE OLYMPICS THE CLAIM WOULD BE BASED ON THE ARGUMENT THAT SHE WAS BEING DEPRIVED UNFAIRLY OF A ONCEINALIFETIME OPPORTUNITY NOTED LEGAL ETHICS AUTHORITY GEOFFREY C HAZARD JR WILL JOIN THE FACULTY OF THE UNIVERSITY OF PENNSYLVANIA LAW SCHOOL IN JULY THE 64YEAROLD PROFESSOR WHO HAS TAUGHT AT YALE LAW SCHOOL SINCE 1971 IS EXPECTED TO TEACH PROFESSIONAL RESPONSIBILITY AND CIVIL PROCEDURE AS WELL AS WORK WITH THE LAW SCHOOL'S CENTER ON PROFESSIONALISM HE WILL ALSO REMAIN A DIRECTOR OF THE LEGALREFORMORIENTED AMERICAN LAW INSTITUTE IN PHILADELPHIA WHERE HE CURRENTLY SPENDS SEVERAL DAYS EACH WEEK MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9401190103 940119 BUSINESS BRIEF MAXWELL COMMUNICATION CORP CONTINENTAL BANK IN GROUP BUYING STANDARD RATE UNIT AN INVESTOR GROUP THAT INCLUDES CONTINENTAL BANK'S VENTURECAPITAL AFFILIATE SIGNED A LETTER OF INTENT TO ACQUIRE STANDARD RATE & DATA SERVICE INC FROM THE LATE ROBERT MAXWELL'S BUSINESS EMPIRE STANDARD RATE & DATA A WILMETTE ILL PUBLISHER OF REFERENCE INFORMATION USED BY ADVERTISING AGENCIES IS A UNIT OF LONDONBASED MAXWELL COMMUNICATION CORP WHICH IS IN BANKRUPTCYLAW PROCEEDINGS CONTINENTAL ILLINOIS VENTURE CORP THE CONTINENTAL BANK AFFILIATE SAID THE PURCHASE PRICE IS BETWEEN 50 MILLION AND 70 MILLION THE TRANSACTION IS EXPECTED TO BE COMPLETED BY MARCH 31 PRICE WATERHOUSE THE COURTAPPOINTED ADMINISTRATOR SAID STANDARD RATE & DATA IS THE LAST SIGNIFICANT PIECE OF MAXWELL COMMUNICATION'S US ASSETS TO BE SOLD PRICE WATERHOUSE SAID IT WILL WRITE MAXWELL COMMUNICATION'S CREDITORS BY THE END OF THE MONTH TO ANNOUNCE THE RESULT OF THE ASSET SALES IT ADDED THAT THE STANDARD RATE & DATA DEAL WILL BRING ASSET SALES TO MORE THAN 15 BILLION 9401190102 940119 LETTERS TO THE EDITOR THE MAMMOGRAPHY CONTROVERSY BERNADINE HEALY'S DEC 28 EDITORIALPAGE ARTICLE MAMMOGRAMS YOUR BREASTS YOUR CHOICE BRINGS TO MIND A QUOTE FROM MARK TWAIN A HALFEDUCATED PHYSICIAN IS NOT VALUABLE HE THINKS HE CAN CURE EVERYTHING IT IS IMPORTANT TO CONSIDER THE OTHER HALF OF THE FACTS DR HEALY CITES EIGHT TRIALS THAT FAILED TO SHOW ANY BENEFIT OF MAMMOGRAPHY FOR YOUNGER WOMEN DESPITE THIS LACK OF EVIDENCE SHE STATES THAT THE TEST SHOULD REMAIN PART OF THE CATECHISM OF WOMEN'S HEALTH BECAUSE IT DOES NO HARM SHE FAILED TO MENTION THAT OVER 10 YEARS' TIME A WOMAN WILL HAVE THREEOUTOFEVERY10 MAMMOGRAMS AND EXAMINATIONS INCORRECTLY INTERPRETED AS A POSSIBLE CANCER KNOWN AS THE FALSE POSITIVE RATE AND THAT NEARLY EVERY WOMEN WHO GETS THIS REPORT MUST UNDERGO SURGERY TO ELIMINATE THE DIAGNOSIS OF CANCER REGRETTABLY THE DATA SHE QUOTES CONFIRMS THAT THERE IS NO EVIDENCE THAT EARLY DETECTION BY MAMMOGRAPHY SAVES LIVES FOR WOMEN UNDER THE AGE OF 50 YEARS THE 17 DIFFERENCE IN SURVIVAL QUOTED BY DR HEALY IS NOT STATISTICALLY SIGNIFICANT WHICH MEANS THAT THOSE DIFFERENCES ARE PROBABLY DUE TO CHANCE ALONE DR HEALY WOULD NOT HAVE ALLOWED ONE OF HER SCIENTISTS AT THE NATIONAL INSTITUTES OF HEALTH TO MAKE A CONCLUSION BASED ON SUCH WEAK EVIDENCE IN FACT THE SWEDEN TRIAL SHOWED THAT YOUNGER WOMEN SCREENED WITH MAMMOGRAPHY HAD A HIGHER DEATH RATE FROM BREAST CANCER THAN THOSE WOMEN WHO WERE NOT SCREENED DR HEALY RELIES HEAVILY ON ENDORSEMENTS BY THE AMERICAN CANCER SOCIETY AND OTHER ORGANIZATIONS THEY ARE NOT THE EQUIVALENT OF SCIENTIFIC EVIDENCE DR HEALY ALSO ACCUSED THE ADMINISTRATION OF CREATING A NEW METHOD OF RATIONING BY ELIMINATING COVERAGE FOR A TEST THAT HAS NOT BEEN PROVEN TO BE EFFECTIVE IS FAILURE TO PROVIDE WORTHLESS OR UNPROVEN TESTS RATIONING OR SIMPLY RESPONSIBLE POLICY I CANNOT UNDERSTAND SUPPORTING INEFFECTIVE THERAPIES AND TESTS WHEN THE FEDERAL GOVERNMENT CANNOT FIND ENOUGH MONEY TO PAY FOR TREATMENTS THAT HAVE PROVEN VALUE SHE IS ABSOLUTELY CORRECT THAT A DEFINITIVE STUDY IS NECESSARY IT IS CURIOUS THAT SHE FAILED TO SPONSOR SUCH A STUDY DURING HER TENURE AS DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH ALLOWING PATIENTS AND PHYSICIANS TO BE HALFEDUCATED ON THIS ISSUE AND TO CONTINUE SPONSORING A DETECTION PROGRAM THAT PROBABLY DOESN'T WORK IS THE WRONG PUBLIC AND MEDICAL POLICY DR HEALY HAS EXPOSED THE MAJOR PROBLEM WITH THE CLINTONS' PROPOSAL FOR HEALTH CARE REFORM LACK OF CHOICE WHAT DR HEALY DID NOT MENTION IN HER OPINION WAS THAT IN SPITE OF WHAT THE NATIONAL INSTITUTES OF HEALTH SAYS IF I LOSE MY WIFE TO THE RAVAGES OF BREAST CANCER SHE IS NOT A STATISTIC SHE WAS MY WIFE AND THE MOTHER OF MY CHILDREN IT WOULD BE A LOSS THAT COULD NOT BE MEASURED OR APPRECIATED BY ANY BUREAUCRAT SO AS A FAMILY WE HAVE MADE A CHOICE EVERY YEAR SINCE THE AGE OF 40 MY WIFE HAS HAD A MAMMOGRAM TO EASE HER MIND ABOUT THE LEGITIMATE FEAR OF EVERY WOMAN IN REGARD TO BREAST CANCER WE HAVE MADE A CHOICE THAT THE CLINTONS' HEALTH CARE PLAN WILL EXCLUDE WE HAVE MADE OTHER CHOICES THAT WILL BE LOST IN THE CLINTON HEALTH CARE PROPOSALS WHAT OF THE FAMILY OR INDIVIDUAL WHO OPPOSES ABORTION ON MORAL AND/OR RELIGIOUS GROUNDS WILL THEY HAVE A CHOICE IN THEIR HEALTH CARE PLAN NO THEY WILL BE FORCED TO PAY PREMIUMS INTO THE ONLY PLAN AVAILABLE A HEALTH ALLIANCE THAT WILL PAY FOR ABORTION ON DEMAND WHAT OF THE YOUNG HEALTHY 25YEAROLDS OFF THEIR PARENTS' HEALTH INSURANCE WHO DECIDE NOT TO CARRY HEALTH INSURANCE FOR A FEW YEARS WHILE THEY STRUGGLE MAKING THEIR WAY IN THE TOUGH ECONOMIC CLIMATE OF TODAY WILL THEY HAVE A CHOICE NO THEY WILL BE FORCED INTO A PREMIUM ARRANGEMENT WITH A LOCAL ALLIANCE UNDER THE CLINTON PLAN WILL YOU HAVE A CHOICE OF DOCTORS YOU WILL BE ABLE TO CHOOSE FROM A PANEL OF DOCTORS ASSOCIATED WITH YOUR ALLIANCE IF YOUR PERSONAL PHYSICIAN IS NOT ON THAT PANEL SORRY YOU WILL HAVE TO CHANGE THE STEALTH ISSUE OF CHOICE IN THE CLINTON PLAN WILL BE THE LACK OF THE CHOICE YOUR DOCTOR WILL HAVE IN MAKING THE BEST DECISIONS FOR YOUR PROBLEMS YOUR DOCTOR WILL BE WORKING FOR A HEALTH ALLIANCE AND WILL BE ECONOMICALLY CREDENTIALED SHE OR HE WILL NO LONGER BE ABLE TO BE YOUR ADVOCATE SHE WILL BE TOLD WHAT DRUGS CAN BE ORDERED ONLY GENERIC DRUGS PLEASE AND NOT THE LATEST TREATMENT FOR ALZHEIMERS WHAT TESTS CAN BE DONE NO MAMMOGRAPHY UNDER 50 WHAT TREATMENTS CAN BE APPLIED NO BONE MARROW TRANSPLANTS FOR THE ESTABLISHED BREAST CANCER THAT WAS NOT DETECTED BY MAMMOGRAPHY BECAUSE YOU WERE UNDER 50 THE CLINTONS WILL SEE TO IT THAT YOUR DOCTOR IS NO LONGER YOUR ADVOCATE WHEN COSTS ESCALATE OUT OF CONTROL AS THEY DO IN ALMOST EVERY GOVERNMENTCONTROLLED PROGRAM YOUR DOCTORS' CHOICES WILL BE EVEN FURTHER LIMITED 9401190101 940119 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH RICHARD J HADALA 36 YEARS OLD WAS NAMED VICE PRESIDENT OF STRATEGIC MANAGEMENT OF THIS POWER GENERATION DEFENSE ELECTRONICS AND BROADCASTING CONCERN MR HADALA WILL BE RESPONSIBLE FOR STRATEGIC PLANNING AND BUSINESS DEVELOPMENT AND WILL WORK CLOSELY WITH THE COMPANY'S BUSINESS UNITS TO STRENGTHEN THEIR STRATEGIC PLANS WESTINGHOUSE SAID HE WILL REPORT DIRECTLY TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL H JORDAN WHO TOOK OVER THE TOP POSTS LAST JUNE MR HADALA FORMERLY WAS A PARTNER WITH MCKINSEY & CO THE CONSULTING FIRM WHERE MR JORDAN WORKED FROM 1964 TO 1974 9401190100 940119 INTERNATIONAL BRIEF GRUPO FINANCIERO BANAMEXACCIVAL MEXICAN BANKING FIRM POSTS 35 RISE IN PROFIT FOR 1993 GRUPO FINANCIERO BANAMEXACCIVAL MEXICO'S LARGEST BANK HOLDING COMPANY SAID 1993 EARNINGS ROSE 35 TO 359 BILLION PESOS 116 BILLION FROM 266 BILLION PESOS IN 1992 AS A RESULT OF STRONG TRADING PROFITS AND STRONGER FEE INCOME THE COMPANY'S SERIES L SHARES THOSE TYPICALLY OWNED BY FOREIGN INVESTORS ROSE 32 TO 2540 PESOS YESTERDAY ON MEXICO'S STOCK EXCHANGE EXPENSES CLIMBED FOR THE YEAR IN NEARLY EVERY CATEGORY FOR THE COMPANY KNOWN AS BANACCI BUT HIGHER COSTS WERE MORE THAN OFFSET BY STRONG INCREASES IN FEE AND TRADING INCOME BANACCI SAID NONINTEREST INCOME MORE THAN DOUBLED IN THE FOURTH QUARTER BECAUSE OF THE BIG RALLY IN MEXICAN STOCKS AFTER THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT AMONG OTHER THINGS FOR THE YEAR NONINTEREST INCOME WAS UP 29 FEE INCOME ROSE 26 BUT BANACCI CONTINUES TO HAVE TROUBLE WITH PASTDUE LOANS WHICH ROSE 17 ON A GROSS BASIS DURING THE QUARTER ACCORDING TO CATHERINE MURRAY BANK STOCK ANALYST AT JP MORGAN SECURITIES ASSET QUALITY IS STILL AN ISSUE SHE SAID 9401190099 940119 PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY PHARMACEUTICAL RESOURCES INC SAID ITS PAR PHARMACEUTICALS INC UNIT AGREED TO DEVELOP GENERIC VERSIONS OF PHARMACEUTICAL PRODUCTS WITH 3M PHARMACEUTICALS A DIVISION OF MINNESOTA MINING & MANUFACTURING CO THE COMPANIES DID NOT DISCLOSE TERMS OF THE AGREEMENT OR THE SPECIFIC PRODUCTS INVOLVED 9401190098 940119 BUSINESS BRIEF MBNA CORP CREDITCARD CONCERN SAYS 4THQUARTER NET ROSE 22 MBNA CORP SAID FOURTHQUARTER NET INCOME ROSE 22 AND DIRECTORS APPROVED A 3FOR2 STOCK SPLIT AND A 125 INCREASE IN THE QUARTERLY DIVIDEND THE NEWARK DEL BANK CREDITCARD CONCERN SAID NET INCOME ROSE TO 633 MILLION OR 63 CENTS A SHARE FROM 518 MILLION OR 52 CENTS A SHARE A YEAR EARLIER THE STOCK SPLIT IS EFFECTIVE FEB 14 TO SHARES OF RECORD FEB 2 THE COMPANY DECLARED A QUARTERLY DIVIDEND OF 18 CENTS A SHARE PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 18 THE DIVIDEND IS EQUAL TO 27 CENTS ON A PRESPLIT BASIS THE COMPANY PREVIOUSLY PAID 24 CENTS QUARTERLY MBNA SAID IT ADDED 34 MILLION CREDITCARD CUSTOMERS DURING THE YEAR BOOSTING THE TOTAL TO MORE THAN 10 MILLION CREDITCARD CHARGE VOLUME DURING THE YEAR ROSE 23 TO 179 BILLION TOTAL ASSETS AT YEAREND STOOD AT 695 BILLION UP FROM 598 BILLION AT THE END OF 1992 MANAGED LOANS WHICH INCLUDE LOANS PACKAGED AND SOLD AS SECURITIES ROSE 25 TO 124 BILLION 9401190097 940119 A GOVERNOR'S LESSON ON TAXES BY PETE DU PONT CHRISTIE WHITMAN'S ECONOMIC PROGRAM FOR NEW JERSEY IS STRAIGHTFORWARD CUT TAXES AND RESTRAIN SPENDING SHE PROPOSES PUTTING INTO PLACE THREE ANNUAL 10 PERSONAL INCOMETAX RATE CUTS THE FIRST BEGINNING RETROACTIVELY AS SHE ANNOUNCED YESTERDAY ELIMINATING INCOME TAXES FOR LOWINCOME FAMILIES AND RESTRAINING STATE SPENDING INCREASES TO THE RATE OF INFLATION MRS WHITMAN WHO TAKES OVER AS GOVERNOR THIS WEEK WON HER ELECTION ON THIS PROGRAM NOW SHE HAS THE OPPORTUNITY TO ENACT IT INTO LAW BUT WILL IT WORK THE ANSWER IS YES IT WILL WORK WHEN TAX RATES GO DOWN REVENUE GOES UP WHEN PUBLICSECTOR GROWTH IS RESTRAINED PRIVATESECTOR OPPORTUNITIES INCREASE AND EVERYONE IS HELPED THE POOR THE WEALTHY AND THE MIDDLE CLASS HOW DO WE KNOW BECAUSE 17 YEARS AGO AS THE NEWLY ELECTED GOVERNOR IN THE NEIGHBORING STATE OF DELAWARE I PROPOSED AND ULTIMATELY SIGNED INTO LAW A PROGRAM OF TAX CUTS AND SPENDING RESTRAINTS EVEN MORE DRAMATIC THAN MRS WHITMAN'S PROPOSALS SEVENTEEN YEARS OF EXPERIENCE DEMONSTRATE THAT THEY WORKED AND WORKED AND WORKED TO BORROW A PHRASE IT'S STILL GOING AS THE ACCOMPANYING GRAPH SHOWS SEE ACCOMPANYING ILLUSTRATION WSJ JAN 19 1994 BETWEEN 1979 AND 1988 DELAWARE'S TOP INCOMETAX RATE WAS REDUCED TO 77 FROM 198 A 60 CUT IN RATES SINCE THE PROGRAM BEGAN PERSONAL INCOMETAX REVENUE HAS DOUBLED AND EMPLOYMENT HAS INCREASED 36 AT THE SAME TIME THE LOWESTINCOME 11 OF TAXPAYERS WERE REMOVED FROM THE TAX ROLLS WHAT THE GRAPH DOES NOT SHOW IS THAT WELFARE CASELOADS FELL BY 40 IN THE DECADE FOLLOWING THE FIRST TAX CUT THE STATE'S BOND RATING IN 1979 THE LOWEST IN THE NATION ROSE SIX TIMES AND THE UNEMPLOYMENT RATE FELL TO TWO PERCENTAGE POINTS BELOW THE NATIONAL AVERAGE HAVING BEGUN TWO PERCENTAGE POINTS ABOVE IT IN 1977 DELAWARE DESPERATELY NEEDED A NEW ECONOMIC POLICY FROM 1970 THROUGH 1977 EMPLOYMENT GROWTH WAS 60 SLOWER THAN WHAT IT WAS IN THE AVERAGE STATE PERSONAL INCOME GROWTH OVER THE SAME PERIOD LAGGED THE AVERAGE STATE BY 13 AND SEVERAL MAJOR COMPANIES HEADQUARTERED IN DELAWARE THREATENED TO LEAVE SMALL BUSINESS FORMATION CONSTRUCTION AND HOUSING GROWTH WERE ALL SLUGGISH RELATIVE TO THE REST OF THE COUNTRY THE REASONS WERE OBVIOUS FROM 1970 TO 1977 STATE SPENDING HAD GROWN BY 110 DOUBLE THE RATE OF INFLATION IN FIVE OF THE SEVEN YEARS BEFORE I TOOK OFFICE THE STATE'S BUDGETS SHOWED OPERATING DEFICITS AT THE END OF THE YEAR DELAWARE HAD BEGUN A SERIES OF ANNUAL BORROWINGS AGAINST ANTICIPATED TAX REVENUES FROM THE NEXT YEAR RESULTING IN THE HIGHEST PERCAPITA STATE DEBT BURDEN IN THE COUNTRY NEW JERSEY'S SITUATION IN 1994 IS SIMILAR TO THAT OF DELAWARE 17 YEARS EARLIER OVER THE PAST THREE YEARS REAL PERSONAL INCOME HAS GROWN AT ONLY A 03 ANNUAL RATE REPRESENTING A STAGGERING 22 BILLION LOSS AGAINST THE HISTORIC TREND LINE SINCE 1989 THE STATE HAS EXPERIENCED A 75 RATE OF JOB DECLINE COMPARED WITH A 3 JOBS INCREASE NATIONWIDE IN OTHER WORDS WHILE THE US WAS PRODUCING 32 MILLION JOBS NEW JERSEY WAS LOSING 277000 NEW JERSEY'S BUDGET GREW 25 IN THREE YEARS THREE TIMES THE INFLATION RATE GOV JIM FLORIO'S 28 BILLION TAX INCREASE MIRRORED DELAWARE'S 80 INCREASE IN THE TOP BRACKET INCOMETAX RATES IN THE EARLY 1970S RESULTING IN THE HIGHEST INCOMETAX RATE IN THE NATION BUT INCOMETAX CUTS AND SPENDING RESTRAINTS WILL RAPIDLY TURN THE BLEAKEST OF ECONOMIC TIMES TOWARD PROSPERITY SINCE 1980 EMPLOYMENT IN DELAWARE'S PRIVATE SECTOR HAS GROWN 67 FASTER THAN THAT OF THE AVERAGE STATE AND ITS PERSONAL INCOME ADVANCED 22 MORE RAPIDLY THAN THE US AVERAGE IN 1992 DELAWARE'S POVERTY RATE WAS THE LOWEST OF ALL 50 STATES DELAWARE HAS ENJOYED A SURPLUS CASH POSITION FOR 15 CONSECUTIVE YEARS WERE THERE OTHER FACTORS INVOLVED YES THE DEMOCRATCONTROLLED LEGISLATURE SUPPORTED THE ECONOMIC PROGRAM AND A SUBSEQUENT DEREGULATION OF THE FINANCIAL SERVICES INDUSTRY THAT BROUGHT THOUSANDS OF WELLPAYING NONPOLLUTING JOBS TO THE STATE BUT FIVE ACROSSTHEBOARD TAX CUTS AND SPENDING RESTRAINTS SET THE COURSE AND LED THE STRONGEST ECONOMIC EXPANSION IN THE STATE'S MEMORY SO WILL MRS WHITMAN'S ECONOMIC PROGRAM WORK OF COURSE IT WILL THE ISSUE IS NOT WHETHER IT WILL WORK BUT WHETHER REPUBLICAN LEGISLATORS WILL ENACT IT ECONOMICALLY IT IS A SLAM DUNK POLITICALLY WELL NOW IS THE TIME FOR NEW JERSEY REPUBLICANS TO STAND TALL MR DU PONT GOVERNOR OF DELAWARE FROM 1977 TO 1985 IS CHAIRMAN OF THE COMMITTEE FOR AMERICAN LEADERSHIP A NONPROFIT EDUCATIONAL ORGANIZATION COMMITTED TO FREEMARKET PRINCIPLES 9401190096 940119 WHO'S NEWS WYMANGORDON CO WYMANGORDON CO NORTH GRAFTON MASS DAVID P GRUBER PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TRANSPORTATION AND DEFENSE EQUIPMENT MAKER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER IN HIS NEW POSITION MR GRUBER 52 YEARS OLD SUCCEEDS JOHN M NELSON 62 WHO REMAINS CHAIRMAN MR GRUBER'S NEW APPOINTMENT IS EFFECTIVE IN APRIL FOLLOWING THE ANNUAL MEETING BEFORE JOINING WYMANGORDON AS PRESIDENT AND CHIEF OPERATING OFFICER IN OCTOBER 1991 MR GRUBER WAS VICE PRESIDENT ADVANCED CERAMICS AT COMPAGNIE DE ST GOBAIN/NORTON CO WORCESTER MASS 9401190095 940119 REVIEW & OUTLOOK EDITORIAL MORALITY MUDDLE THE BRITISH GOVERNMENT HAS DONE THE WORLD A FAVOR BY DEMONSTRATING HOW NOT TO CONDUCT A CAMPAIGN TO PROMOTE TRADITIONAL VALUES THE DISASTROUS BRITISH EFFORT BEGAN A FEW MONTHS AGO WHEN JOHN MAJOR AND HIS ADVISERS ATTEMPTED TO RESPOND TO POPULAR PERCEPTIONS OF A DECLINE IN THE NATION'S MORAL STANDARDS WITH SOME FANFARE THEY LAUNCHED A PROGRAM CALLED BACK TO BASICS AT THE SAME TIME THERE IS A SERIOUS DEBATE IN BRITAIN ABOUT THE EXPLOSION OF ILLEGITIMACY AND THE GROWTH OF THE UNDERCLASS THE DEBATE HAS ECHOES HERE IN AMERICA BUT AS OFTEN HAPPENS WITH PROJECTS IMAGINED BY POLITICIANS BRITAIN'S BACK TO BASICS PROGRAM WAS SO VAGUE THAT IT COULD BE WILLFULLY MISUNDERSTOOD BY THE OPPOSITION WITH THE LABOR PARTY MORIBUND THE REAL OPPOSITION IN BRITAIN IS THE MEDIA LED BY THE TRADITIONALLY TORY ORGANS WHEN JUNIOR MINISTER TIM YEO ADMITTED TO COMMITTING ADULTERY AND FATHERING AN ILLEGITIMATE CHILD MEDIA HYSTERIA WAS ALMOST INSTANTANEOUS THE MINISTER WAS FORCED TO RESIGN AMID ACCUSATIONS OF GOVERNMENT HYPOCRISY TRADITIONAL IN PUBLIC LIBERTINE IN PRIVATE SINCE THEN THE PRESS HAS SOUGHT EVER MORE CASES OF TORY PHILANDERING THE IMBROGLIO PASSED THE POINT OF ABSURDITY WITH THE CASE OF A MEMBER OF PARLIAMENT DAVID ASHBY MR ASHBY AND A MALE FRIEND WERE TOURING RURAL FRANCE AND AT THE LAST MOMENT TOOK A HOTEL ROOM THAT HAD ONLY ONE LARGE BED WHICH THEY SHARED THIS SOMEHOW HIT THE FRONT PAGES AMID UNSUBSTANTIATED TALES OF GAY LOVE THE COMMON RESPONSE TO THIS FIASCO IS THAT PUBLIC LIVES AND PRIVATE LIVES SHOULD BE KEPT SEPARATE AND THAT GOVERNMENT SHOULD GET OUT OF THE MORALITY BUSINESS MANY PEOPLE HAVE CITED PRIME MINISTER HAROLD MACMILLAN'S ANSWER TO A QUESTION ABOUT MORAL VALUES HE TOLD THE QUESTIONER NOT TO BOTHER THE PRIME MINISTER BUT TO ASK A BISHOP THERE'S SOME WISDOM IN THIS VIEW BUT THE PROBLEM IS THAT WHEN A RADIO INTERVIEWER ASKS A CHURCH OF ENGLAND BISHOP A QUESTION ABOUT MORALITY HE OR SHE GETS AN ANSWER ON THE EVILS OF THIS OR THAT GOVERNMENT POLICY THE CHURCH OF ENGLAND IS NO LONGER THE MORAL GUIDEPOST FOR THE NATION ONE MAY WONDER IF CHURCHES IN THE US HAVE SIMILARLY FRITTERED AWAY THEIR MORAL AUTHORITY INSTEAD THE STATE HAS LEGISLATED ON ALL MANNER OF PERSONAL BEHAVIOR THE STATE MAY BE RIGHT OR WRONG TO INTERVENE IN THESE MATTERS BUT IF IT IS GOING TO TAKE CONTROL IT HAS TO BEAR RESPONSIBILITY THE STATE IS NOW THE MORAL TONESETTER AND MINISTERS ARE THEREFORE EXPECTED TO ACT WITH THE PROPRIETY THAT WAS DEMANDED OF BISHOPS A CENTURY AGO WE DOUBT THIS IS PROGRESS SO WE DO THINK PUBLIC OFFICIALS SHOULD BE HELD ACCOUNTABLE FOR THEIR CONDUCT AT THE SAME TIME A PURITANICAL OR RADICAL FEMINIST WITCH HUNT DOES NOT APPEAL NONETHELESS PRIME MINISTER MAJOR IS DRAWING THE WRONG LESSON HIS GOVERNMENT NOW SEEMS TO HAVE BEEN SCARED OFF ANY TALK OF MORAL STANDARDS BUT PUBLIC CONCERNS WON'T GO AWAY SO LONG AS CRIME INCREASES AND CHILDREN ARE ABANDONED THE EVIDENCE SHOWING THAT FAMILY BREAKDOWN CAN BE ASSOCIATED WITH TERRIBLE SOCIAL PROBLEMS IS TOO STRONG TO IGNORE THE BETTER COURSE IS EITHER FOR THE STATE TO GET OUT OF PERSONAL REFORM AND LEAVE THIS TO RELIGIOUS AND PHILANTHROPIC ENTITIES OR ELSE TO DEFINE HOW THE STATE CAN ENCOURAGE PEOPLE TO BEHAVE BETTER AND TO RECOGNIZE AND GET RID OF GOVERNMENT POLICIES THAT ENCOURAGE PEOPLE TO BEHAVE WORSE 9401190094 940119 TREASURY PLANS SALE OF 252 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 125 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2532 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS CUSIP 912794K37 MATURING ON APRIL 28 1994 AND 26WEEK BILLS CUSIP 912794L51 MATURING JULY 28 1994 9401190093 940119 BUSINESS BRIEF SYNOPTICS COMMUNICATIONS INC FOURTHQUARTER NET SOARED BY 65 ON 81 REVENUE RISE SYNOPTICS COMMUNICATIONS INC SANTA CLARA CALIF SAID FOURTHQUARTER NET SOARED 65 ON AN 81 SURGE IN REVENUE BUT THE RESULTS WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS NET INCOME FOR THE QUARTER WAS 238 MILLION OR 34 CENTS A SHARE COMPARED WITH WALL STREET'S EXPECTATIONS OF 36 CENTS A SHARE A YEAR EARLIER NET WAS 169 MILLION OR 25 CENTS A SHARE REVENUE WAS 1883 MILLION UP FROM 1305 MILLION A YEAR EARLIER SYNOPTICS ATTRIBUTED THE GROWTH TO ITS STRONG POSITION IN A FASTGROWING MARKET IN A SIGN THAT GROWTH IS SLOWING FOR THE MAKER OF DATASWITCHING DEVICES REVENUE ROSE SLIGHTLY FROM THE PREVIOUS QUARTER'S REVENUE OF 1833 MILLION WHAT'S MORE FOURTHQUARTER BACKLOG PLUNGED TO 46 MILLION FOR THE RECENT QUARTER FROM 118 MILLION A YEAR EARLIER MONTGOMERY SECURITIES ANALYST RICHARD KIMBALL SAID MR KIMBALL ATTRIBUTED THE SLOWDOWN TO SYNOPTICS'S TRANSITION TO ITS NEW SYSTEM 5000 HUB PRODUCT WHICH IS NOW BEING SHIPPED WITH FEW FEATURES NEW PRODUCTS HAVE GOT TO SHIP MORE FULLY FEATURED BEFORE THEY GET REVENUE GROWTH HE SAID 9401190092 940119 BUSINESS BRIEF SPRINT CORP ACCORD WITH POLISH FIRM SET FOR A FIBEROPTIC NETWORK SPRINT CORP SAID IT AGREED WITH RP TELEKOM SA TO DEVELOP A FIBEROPTIC NETWORK FOR LOCAL TELEPHONE AND CABLE TELEVISION SERVICES IN POLAND'S PILA AND KATOWICE DISTRICTS SPRINT A TELECOMMUNICATIONS COMPANY BASED IN KANSAS CITY MO SAID IT WILL INVEST ABOUT 15 MILLION TO OWN A 25 EQUITY INTEREST IN THE NEW COMPANY RP TELEKOM A JOINT VENTURE OF POLISH AND WESTERN INVESTORS THAT DEVELOPS TELECOMMUNICATIONS PROJECTS IN POLAND WILL ALSO INVEST IN THE COMPANY AND CONTRIBUTE ITS MAJORITYOWNERSHIP INTEREST IN TWO LOCAL OPERATING COMPANIES TELEKOM PILA AND TELEKOM SILESIA THE REMAINING OWNERSHIP WILL BE HELD BY INVESTORS AND LOCAL INTERESTS SPRINT SAID TOTAL INVESTMENT IS ABOUT 120 MILLION 9401190091 940119 SOUTHERN CALIFORNIA EARTHQUAKE ORACLE DELAYS UNVEILING OF SOFTWARE DUE TO QUAKE REDWOOD CITY CALIF ORACLE CORP POSTPONED AN ELABORATE PRESS EVENT TO UNVEIL NEW MULTIMEDIA SOFTWARE BECAUSE OF THE LOS ANGELES EARTHQUAKE THE COMPANY HAD ARRANGED LIVE VIDEO HOOKUPS TO BROADCAST THE EVENT TO NEW YORK WASHINGTON TOKYO AND LONDON FROM CBS STUDIOS IN HOLLYWOOD BESIDES ORACLE EXECUTIVES PLANNED PARTICIPANTS WERE TO INCLUDE FORMER NEWSCASTER WALTER CRONKITE PUBLISHER MALCOLM FORBES JR AND RAYMOND SMITH CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC CORP ORACLE REPRESENTATIVES SAID THE QUAKE DIDN'T DAMAGE THE SET IT CONSTRUCTED AT CBS AND COMPUTERS AT THE STUDIO APPEARED TO WORK NORMALLY ONCE ELECTRICAL POWER WAS RESTORED THE COMPANY NEVERTHELESS DECIDED TO POSTPONE THE EVENT OUT OF CONCERN FOR PARTICIPANTS' SAFETY AMID CONTINUING AFTERSHOCKS IN THE AREA AND BECAUSE OF TRANSPORTATION PROBLEMS IT EXPECTS TO SET A NEW DATE FOR THE EVENT IN ABOUT A WEEK