WASHINGTON THE CLINTON ADMINISTRATION ALTERED ITS NEARLY COMPLETE
SUPERFUNDLAW REVISION TO FURTHER REDUCE LIABILITY FOR INDIVIDUAL INSURANCE
COMPANIES AND POLLUTING BUSINESSES

UNDER THE ADMINISTRATION PLAN PROPERTY AND CASUALTY INSURERS WOULD PAY A
NEW TAX TO HELP SETTLE LAWSUITS BROUGHT AGAINST INSURANCE COMPANIES BY
BUSINESSES THAT DUMPED HAZARDOUS WASTES PRIOR TO 1986 THE ADMINISTRATION
PREVIOUSLY FAVORED USING THE FUNDS TO SETTLE LAWSUITS OVER WASTES DUMPED
PRIOR TO 1980

THE CHANGE WAS MADE LARGELY TO ACCOMMODATE THE INSURANCE INDUSTRY INSURERS
ARGUE IT IS DIFFICULT TO ASSIGN BLAME FOR WASTE DUMPED BEFORE 1986 BECAUSE
THE FEDERAL GOVERNMENT DIDN'T REQUIRE COMPANIES TO KEEP DETAILED RECORDS ON
HAZARDOUSWASTE DUMPING UNTIL THEN THEY ALSO PREFER THE LATER DATE BECAUSE
INSURANCE COMPANIES IN 1986 STARTED WRITING BUSINESS POLICIES THAT
EXPLICITLY OMITTED HAZARDOUS WASTE DUMPS

THE ADMINISTRATION ORIGINALLY SOUGHT TO RAISE 500 MILLION WITH THE NEW TAX
BUT THE AMOUNT NOW IS LIKELIER TO BE SOMEWHERE BETWEEN 500 MILLION AND 1
BILLION THE ADMINISTRATION EXPECTS TO SUBMIT ITS SUPERFUND PROPOSAL TO
CONGRESS LATER THIS MONTH

SEPARATELY THE REV BEN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL
ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE SAID HE HAS FORMED A
COALITION OF BUSINESSES AND OTHER GROUPS BEHIND A PLAN TO SCRAP THE CURRENT
SUPERFUNDLIABILITY SCHEME HIS PLAN WOULD PAY FOR CLEANUPS WITH AS MUCH AS
18 BILLION IN NEW BROADBASED BUSINESS TAXES PLUS UP TO 170 MILLION IN
EXTRA SPENDING FROM GENERAL REVENUES THE PLAN WOULD DIVERT SOME SUPERFUND
MONEY TO PROMOTE ECONOMIC DEVELOPMENT IN COMMUNITIES ABUTTING SUPERFUND
SITES WHICH ARE OFTEN LOWINCOME AND MINORITY

AMONG THE BACKERS FOR THE ALTERNATE SCHEME ARE AMERICAN INTERNATIONAL GROUP
INC TEXACO INC SHELL OIL CO PHILLIPS PETROLEUM CO AND OLIN CORP

OFFICIALS FROM SEVERAL ENVIRONMENTAL GROUPS HAVE CRITICIZED MR CHAVIS'S
PLAN AS OVERLY GENEROUS TO POLLUTERS AND UNLIKELY TO WIN CONGRESSIONAL
PASSAGE BECAUSE OF THE SIZABLE NEW TAXES HE PROPOSES BUT MR CHAVIS
CONTENDS THE CHANGES ARE NECESSARY TO SPEED SUPERFUND CLEANUPS AND HIS
STATURE AS A CIVILRIGHTS LEADER IS LIKELY TO LEND WEIGHT TO INDUSTRY GROUPS
SEEKING TO REDUCE THE LIABILITY OF POLLUTERS MORE THAN THE ADMINISTRATION
PROPOSES

AT A NEWS CONFERENCE MR CHAVIS WHO MET WITH PRESIDENT CLINTON ON THE
MATTER LAST MONTH TERMED THE CURRENT ADMINISTRATION PLAN INADEQUATE HE
SAID HE WOULD MEET WITH WHITE HOUSE OFFICIALS ABOUT THE NAACP PLAN LATER
THIS WEEK

THE NAACP PLAN JOINS AN EVERGROWING NUMBER OF RECENT AND OFTENCONFLICTING
CONSENSUS RECOMMENDATIONS ABOUT THE SUPERFUND FROM PRIVATE GROUPS THAT
REPRESENT BOTH BUSINESSES AND ENVIRONMENTALISTS YET ANOTHER SUCH PROPOSAL
FROM CLEAN SITES A NONPROFIT COMPANY THAT PROVIDES VARIOUS SERVICES TO
HAZARDOUSWASTE SITES AND WHOSE BOARD INCLUDES FORMER ENVIRONMENTAL
PROTECTION AGENCY ADMINISTRATORS WILLIAM REILLY AND RUSSELL TRAIN IS
EXPECTED TO BE RELEASED SHORTLY THE PLAN WILL CALL FOR ALLOWING STATES TO
ASSUME CLEANUP RESPONSIBILITY FOR INDIVIDUAL SUPERFUND SITES 9401190089
940119 BROWNINGFERRIS'S EXGENERAL COUNSEL IS ACCUSED OF INSIDER TRADING
BY SEC  BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET
JOURNAL

THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE FORMER GENERAL COUNSEL OF
BROWNINGFERRIS INDUSTRIES INC OF INSIDER TRADING BY SELLING SHARES IN THE
GARBAGEDISPOSAL COMPANY BEFORE IT MADE A DISAPPOINTING EARNINGS PROJECTION

THE SEC SAID HOWARD S HOOVER JR WAS UNJUSTLY ENRICHED BY AT LEAST
97500 BY SELLING 15000 SHARES OF BROWNINGFERRIS STOCK ON AUG 23 1991
ONE WEEK BEFORE THE COMPANY ANNOUNCED LOWER REVISED EARNINGS PROJECTIONS

THE COMMISSION NOTED IN THE SUIT THAT AS GENERAL COUNSEL MR HOOVER WAS
RESPONSIBLE FOR FORMULATING CORPORATE POLICIES AND PROCEDURES TO ENSURE
COMPLIANCE ON INSIDER TRADING LAWS IT IS SEEKING AN ORDER FOR MR HOOVER
TO PAY BACK THE 97500 PLUS A CIVIL PENALTY

MR HOOVER WHO WAS FIRED BY BROWNINGFERRIS WITHIN WEEKS AFTER THE SALE WAS
REVEALED IN SEPTEMBER 1991 WASN'T AVAILABLE FOR COMMENT HIS WASHINGTON
LAWYER MICHAEL R KLEIN SAID IN A STATEMENT THAT THE SEC'S DECISION TO SUE
IS INEXPLICABLE HE SAID HIS CLIENT'S CONDUCT WAS AND WILL BE SHOWN TO
HAVE BEEN ABSOLUTELY PROPER MR HOOVER KNEW OF NO UNDISCLOSED MATERIAL
INFORMATION WHEN HE SOLD HIS BFI SHARES

THE SEC ALLEGES OTHERWISE IN A CIVIL COMPLAINT FILED JAN 10 AGAINST MR
HOOVER IN US DISTRICT COURT IN HOUSTON THE SUIT'S EXISTENCE WAS REVEALED
BY THE COMMISSION YESTERDAY

ACCORDING TO THE SUIT THE BROWNINGFERRIS GENERAL COUNSEL PARTICIPATED IN
AN INTERNAL MEETING AND LATER DISCUSSIONS ABOUT AN EXPECTED SHORTFALL IN THE
COMPANY'S EARNINGS THE SUIT SAYS THE COMPANY'S ASSISTANT COMPTROLLER
ADVISED MR HOOVER ON OR ABOUT AUG 21 THAT PROJECTED EARNINGS WOULD HAVE
TO BE REVISED DOWNWARD AND THAT THE ASSISTANT COMPTROLLER SOUGHT MR
HOOVER'S ADVICE ON WHAT KIND OF PUBLIC DISCLOSURE SHOULD BE MADE

AS A RESULT THE SEC SAID MR HOOVER KNEW BEFORE HE SOLD WHAT AMOUNTED TO
HALF HIS BROWNINGFERRIS SHARES THAT BFI INTENDED TO PUBLICLY CORRECT ITS
PRIOR EARNINGS PROJECTIONS

WHEN BROWNINGFERRIS DID DISCLOSE LOWER PROFIT EXPECTATIONS A WEEK AFTER MR
HOOVER'S AUG 23 STOCK SALE THE COMPANY'S SHARES FELL 4 TO 2175

THE SEC TOOK NO ACTION AGAINST ANOTHER FORMER BROWNINGFERRIS EXECUTIVE WHO
SOLD ABOUT HALF HIS BROWNINGFERRIS SHARES ON AUG 12 1991 AND WAS FIRED
AT THE SAME TIME AS MR HOOVER THE EXECUTIVE R JOHN STANTON JR WHO HAD
BEEN CHIEF FINANCIAL OFFICER HAS SAID HE SOLD THE SHARES BECAUSE IT WASN'T
VERY PRUDENT TO HAVE THAT MANY EGGS IN ONE BASKET

THE SEC MIGHT HAVE HAD A DIFFICULT CASE AGAINST MR STANTON HE SOLD HIS
SHARES THE SAME DAY THE COMPANY MADE A PUBLIC FILING WITH THE COMMISSION AND
BEFORE SOME OF THE ALLEGED DISCUSSIONS ABOUT THE SUBSEQUENT EARNINGS
SHORTFALL

MR STANTON SAID FROM HIS HOME IN HOUSTON THAT THE SEC HAS TOLD HIS LAWYER
IT ISN'T GOING TO FILE A COMPLAINT AGAINST HIM MR STANTON SAYS HE VIEWS
THAT AS A VINDICATION OF MY POSITION

A BROWNINGFERRIS SPOKESMAN SAID THAT THE HOUSTONBASED COMPANY COOPERATED
WITH THE SEC'S INVESTIGATION BUT THAT IT HAD NO FURTHER COMMENT
9401190088 940119 WHO'S NEWS EASEL CORP

EASEL CORP BURLINGTON MASS JOHN P MCDONOUGH WAS NAMED TO THE NEW
POSITION OF CHIEF OPERATING OFFICER OF THIS SOFTWARE DEVELOPMENT TOOLS
SUPPLIER MR MCDONOUGH WHO JOINED THE COMPANY IN 1985 PREVIOUSLY WAS
SENIOR VICE PRESIDENT OF OPERATIONS 9401190087 940119 YIELDS ON CDS SHOW
 LITTLE CHANGE IN WEEK

NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE
FIRMS WERE GENERALLY FLAT IN THE WEEK ENDED YESTERDAY

THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO
273 FROM 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE
AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLID TO 445 FROM 446 THE
WILMINGTON DEL INFORMATION SERVICE SAID

THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 312 WHILE THE
AVERAGE YIELD ON FIVEYEAR BROKERSOLD CDS STAYED AT 448 THE SURVEY SAID

ON LARGEDENOMINATION OR JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF
95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO
278 FROM 279 ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWN TO 463 FROM
466 ACCORDING TO BANXQUOTE 9401190086 940119 NORTHWEST AIRLINES 
PLANS STOCK OFFER OF 460 MILLION  BY MICHAEL J MCCARTHY STAFF
REPORTER OF THE WALL STREET JOURNAL

NORTHWEST AIRLINES CORP FILED FOR AN INITIAL PUBLIC OFFERING OF 23 MILLION
COMMON SHARES AT A PRICE OF AS MUCH AS 20 APIECE OR A TOTAL OF 460
MILLION

THE OFFERING WOULD RETURN NORTHWEST THE NATION'S FOURTHLARGEST AIRLINE TO
THE PUBLIC MARKETPLACE FOR THE FIRST TIME SINCE 1989 WHEN IT WAS TAKEN
PRIVATE IN A 36 BILLION LEVERAGED BUYOUT

A PRELIMINARY PROSPECTUS FOR THE OFFER PROVIDES THE FIRST DETAILED LOOK AT
HOW NORTHWEST HAS REDUCED STAFFING DEFERRED SIZABLE AIRCRAFT ORDERS AND
SLIMMED DOWN HUBS IN THE FOUR YEARS SINCE IT DROPPED OFF INVESTOR RADAR
SCREENS

THE OFFERING PLAN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COMES
AFTER A TUMULTUOUS 1993 FOR THE AIRLINE FACING A CASH SQUEEZE THE COMPANY
NARROWLY AVERTED A BANKRUPTCYLAW FILING LAST SUMMER WHEN EMPLOYEES AGREED
TO 886 MILLION IN WAGE AND WORKRULE CONCESSIONS IN EXCHANGE FOR EQUITY IN
THE COMPANY

PROCEEDS FROM THE OFFERING PLANNED FOR THE FIRST QUARTER WILL BE USED TO
HELP REDUCE NORTHWEST'S DEBT LOAD AS OF SEPT 30 1993 NORTHWEST'S
LONGTERM DEBT TOTALED 453 BILLION

IN THE PAST TWO YEARS NORTHWEST REDUCED ITS STAFF BY ABOUT 4300 POSITIONS
INCLUDING 1200 MANAGEMENT JOBS THE FILING SAID FOR AN ANNUAL SAVING OF
ABOUT 142 MILLION AT THE END OF SEPTEMBER NORTHWEST HAD 43142 EMPLOYEES

LIKE OTHER MAJOR AIRLINES NORTHWEST HAS BEEN SCALING BACK ITS
ONCEAMBITIOUS AIRCRAFTPURCHASE PLANS SINCE LATE 1992 NORTHWEST SAID IT
HAS CANCELED FIRM ORDERS FOR 4 BILLION IN NEW AIRCRAFT AND DEFERRED
DELIVERIES BY AN AVERAGE OF 3 1/2 YEARS ON 38 BILLION OF NEW AIRCRAFT

NORTHWEST SAID THAT IN THE MEANTIME IT IS CONSIDERING A MAJOR REFURBISHING
PROGRAM OF MOST OF ITS DC9 PLANES WHICH COULD COST ABOUT 150 MILLION
WHILE THAT WOULD BE LESS COSTLY THAN BUYING NEW AIRCRAFT THE COMPANY COULD
SUFFER A COMPETITIVE DISADVANTAGE BECAUSE IT WOULD STILL BE FLYING OLDER
PLANES THE FILING NOTES THAT IF NORTHWEST PROCEEDS WITH THE REFURBISHING
PROGRAM THE AGE OF ITS FLEET WILL BE SOMEWHAT HIGHER THAN INDUSTRY
AVERAGES

NORTHWEST ALSO SAID THAT SINCE 1991 IT HAS ELIMINATED UNPROFITABLE
MINIHUBS AT MILWAUKEE AND AT WASHINGTON'S NATIONAL AIRPORT MOVING PLANES
TO BEEF UP SCHEDULES AT ITS BIG HUBS AT MINNEAPOLIS / ST PAUL AND DETROIT

NORTHWEST SAID THAT IT PLANS A BIG EXPANSION OF JOINT OPERATIONS WITH KLM
ROYAL DUTCH AIRLINES WHICH HOLDS A 75 STAKE IN NORTHWEST THE TWO
AIRLINES HAVE JOINT MARKETING AGREEMENTS IN 17 CITIES IN EUROPE AND 44
CITIES IN THE US AND THIS YEAR THE FILING SAID THEY PLAN TO ADD 100
CITIES SUBJECT TO GOVERNMENT APPROVALS

THE TWO AIRLINES ARE ALSO CONSIDERING A FURTHER CONSOLIDATION OF THEIR
OPERATIONS INCLUDING A POSSIBLE MERGER OF THEIR CARGO BUSINESSES IN THE
PROSPECTUS NORTHWEST SAID SUCH A COMBINATION WOULD CREATE THE WORLD'S
SECONDLARGEST CARGO COMPANY

ACCORDING TO THE FILING THE ORIGINAL INVESTORS IN THE 1989 LEVERAGED BUYOUT
OF NORTHWEST WOULD HOLD ABOUT 52 OF THE VOTING EQUITY AND ABOUT 57 OF THE
COMMON EQUITY OF THE AIRLINE ONCE THE OFFERING IS COMPLETED NONE OF THE
ORIGINAL INVESTORS ARE SELLING ANY SHARES IN THE OFFERING THE FILING SAID

NORTHWEST AIRLINES CORP THE PARENT OF THE AIRLINE WAS FORMERLY KNOWN AS
WINGS HOLDINGS INC 9401190085 940119 TAX REPORT A SPECIAL SUMMARY AND
FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS  BY TOM HERMAN

EARTHQUAKE VICTIMS DON'T HAVE TO WAIT UNTIL NEXT YEAR TO DEDUCT LOSSES

BECAUSE PRESIDENT CLINTON HAS SIGNED A FEDERAL DECLARATION OF DISASTER FOR
SOUTHERN CALIFORNIA VICTIMS HAVE AN UNUSUAL CHOICE USUALLY CASUALTY
LOSSES MAY BE DEDUCTED ONLY IN THE YEAR THEY OCCUR BUT ONCE THE PRESIDENT
DECLARES A DISASTER AREA VICTIMS MAY DEDUCT THEIR LOSSES IN THE YEAR THE
DISASTER HIT OR IN THE PRECEDING YEAR

THUS QUAKE VICTIMS MAY DEDUCT CASUALTY LOSSES FOR THE 1993 TAX YEAR SAYS
SIDNEY KESS A NEW YORK LAWYER AND ACCOUNTANT BUT SOME VICTIMS MIGHT BE
BETTER OFF WAITING UNTIL NEXT YEAR ANYWAY HE SAYS THE ANSWER HINGES ON HOW
MUCH INCOME THEY EXPECT IN 1994 HOW MUCH THEY EARNED IN 1993 AND THEIR TAX
BRACKET FOR BOTH YEARS HE SAYS PERSONAL CASUALTY LOSSES ARE DEDUCTIBLE
AFTER SUBTRACTING INSURANCE PROCEEDS AND A 100 THRESHOLD FOR EACH CASUALTY
ONLY TO THE EXTENT THAT THEY EXCEED 10 OF ADJUSTED GROSS INCOME

THE IRS IS EXPECTED TO WAIVE PENALTIES ON VICTIMS WHO ARE LATE WITH ANY
FEDERAL TAX FILINGS

TWO WORDS LEAD TO A COURTROOM BATTLE BETWEEN A TAX PROTESTER AND THE IRS

DO YOU HAVE A RIGHT TO PROTEST WHEN FILING YOUR FEDERALTAX RETURN THAT WAS
THE QUESTION IN A RECENT CASE PITTING LAWRENCE P MCCORMICK OF BROOKLYN
NY AGAINST THE IRS MR MCCORMICK FILED HIS 1991 RETURN ON APRIL 15
1992 BENEATH HIS SIGNATURE HE WROTE UNDER PROTEST THE IRS REFUSED TO
ACCEPT THE RETURN AND CHARGED HIM PENALTIES FOR A FRIVOLOUS FILING AND A
LATE RETURN

BUT US DISTRICT COURT JUDGE JACK B WEINSTEIN SIDED WITH MR MCCORMICK A
TAXPAYER NEED NOT SUFFER IN SILENT ACQUIESCENCE TO A PERCEIVED INJUSTICE
THE JUDGE WROTE MR MCCORMICK DIDN'T CHANGE THE MEANING OF ANYTHING ON THE
RETURN BY ADDING THOSE TWO WORDS OF PROTEST INSTEAD MR MCCORMICK
PROPERLY EXERCISED HIS FIRST AMENDMENT RIGHT TO PROTEST WHILE STILL
COMPLYING WITH HIS OBLIGATION TO FILE A TIMELY TAX RETURN THE JUDGE SAID A
PROTEST IS AN EXPRESSION OF GRIEVANCE SEEKING REDRESS THAT THE INTERNAL
REVENUE SERVICE MAY NOT THROTTLE OR MUTE BY THREATS OF PENALTIES

DECLARATION OF DEPENDENTS THE VALUE OF PERSONAL EXEMPTIONS HAS SHRUNK

TAXPAYERS WITH CHILDREN AND OTHER DEPENDENTS DO NOT GET NEARLY AS BIG A TAX
BREAK AS THEY DID SEVERAL DECADES AGO SAYS EUGENE STEUERLE SENIOR FELLOW
AT THE URBAN INSTITUTE IN WASHINGTON THE INCREASE IN TAX ON HOUSEHOLDS
WITH DEPENDENTS REPRESENTS BY FAR ONE OF THE MOST FUNDAMENTAL TAX CHANGES OF
THE POSTWAR ERA HE WRITES IN TAX NOTES A WEEKLY PUBLICATION

IF THE EXEMPTION HAD BEEN ADJUSTED FOR BOTH INFLATION AND REAL GROWTH IN
INCOME SINCE 1948 IT WOULD HAVE RISEN TO 8652 IN 1993 MR STEUERLE SAYS
THE ACTUAL AMOUNT FOR 1993 WAS 2350 HE NOTES THAT THE AMOUNT OF THE
EXEMPTION HAS BEEN TIED TO THE COST OF LIVING FOR ONLY ABOUT A DECADE AND
WAS INCREASED IN THE 1986 LAW HE FAVORS INCREASING CHILD ALLOWANCES OR
CREDITS TO MAKE UP FOR THIS PAST DECLINE AND TO REPLACE CERTAIN WELFARE
PAYMENTS

THE MAXIMUM AMOUNT YOU MAY CONTRIBUTE TO YOUR TAXDEFERRED 401K RETIREMENT
PLAN THIS YEAR RISES TO 9240 FROM 8994 LAST YEAR IRS OFFICIALS SAY THE
HIGHER 1994 LEVEL REFLECTS ANNUAL COSTOFLIVING ADJUSTMENTS REQUIRED BY
LAW

HIGHINCOME TAXPAYERS TAKE NOTE IRS FORM 8841 NOW IS AVAILABLE IT SHOWS
HOW TO TAKE ADVANTAGE OF A PROVISION IN THE 1993 TAX LAW ALLOWING THOSE HIT
BY THE TWO NEW HIGHER INCOMETAX RATES OF 36 AND 396 TO SPREAD OUT
PAYMENT OF THEIR HIGHER TAXES OVER THREE YEARS

WE SHOULD ALL BE SO LUCKY THE AMERICAN SOCIETY FOR PAYROLL MANAGEMENT
COMPLAINS TO THE IRS THAT ONE BOX ON 1993'S W2 FORM DOESN'T LEAVE ROOM TO
TYPE IN INCOME OF 1 MILLION OR MORE THE SOCIETY WARNS MEMBERS TO USE
TYPEWRITERS THAT TYPE 12 CHARACTERS PER INCH ON THE FORM THIS COULD AFFECT
A LOT OF PEOPLE ON WALL STREET A SPOKESMAN EXPLAINED THE IRS IS LOOKING
INTO IT

DEFERREDPAY PLANS MAY BE MORE ATTRACTIVE BECAUSE OF A RECENT DECISION

ALBERTSON'S INC A LARGE FOOD AND DRUGSTORE CHAIN BASED IN BOISE IDAHO
RECENTLY WON PART OF A US APPEALSCOURT CASE THAT COULD CHANGE THE WAY
MOST EMPLOYERS HANDLE THEIR DEFERREDCOMPENSATION PLANS FOR TAX PURPOSES
SAYS LAURIE KEENAN A TAX LAWYER AT IVINS PHILLIPS & BARKER IN WASHINGTON
ALBERTSON'S AGREED TO DEFER CERTAIN PAYMENTS TO SEVERAL OF ITS TOP
EXECUTIVES AND AN OUTSIDE DIRECTOR THE COMPANY ALSO PROMISED TO PAY
INTEREST ON THOSE DEFERRED PAYMENTS AND IT DEDUCTED THE INTEREST EACH YEAR

THE IRS CHALLENGED THE DEDUCTIONS AND WON IN TAX COURT BUT NOW AN APPEALS
COURT HAS RULED THE COMPANY MAY DEDUCT THE INTEREST CURRENTLY EVEN THOUGH
IT WON'T PAY IT FOR YEARS TO COME THIS IS A GROUNDBREAKING DECISION SAYS
EDWARD J ABAHOONIE OF COOPERS & LYBRAND JERROLD S GATTEGNO OF DELOITTE &
TOUCHE SAYS THE RULING THAT A COMPANY CAN GET AN INTEREST DEDUCTION BEFORE
THE INDIVIDUAL RECEIVES THE INCOME IS PRETTY MONUMENTAL

THE IRS HASN'T SAID YET IF IT WILL APPEAL OR CHALLENGE IT IN OTHER AREAS

BRIEFS A NEW TAX GUIDE FOR JOURNALISTS BY CCH INC OF RIVERWOODS ILL
INCLUDES DETAILS ON STRIKE BENEFITS PARKING TICKETS BRIBES AND KICKBACKS
  A NATURAL VILLAIN A PROFESSIONAL WRESTLER WHO TOTES A BRIEFCASE CALLS
HIMSELF IRS 9401190084 940119 POLITICS & POLICY SOUTHERN CALIFORNIA
EARTHQUAKE CLINTON'S QUICK RESPONSE IN AIDING LOS ANGELES REFLECTS
POLITICAL AS WELL AS OTHER CONSIDERATIONS  BY GERALD F SEIB AND
DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON WHATEVER DEPRIVATIONS LOS ANGELES RESIDENTS MAY FEEL AS THEY
RECOVER FROM THIS WEEK'S EARTHQUAKE THEY WON'T SUFFER FROM ANY SHORTAGE OF
CLINTON ADMINISTRATION OFFICIALS OFFERING ASSISTANCE

PRESIDENT CLINTON HIMSELF CLIMBS ABOARD AIR FORCE ONE TODAY TO HEAD TO LOS
ANGELES TO INSPECT THE EARTHQUAKE DAMAGE BUT HE'LL ONLY BE JOINING A
GROWING CROWD OF HIS AIDES ALREADY ON HAND TO HELP

TWO CABINET MEMBERS TRANSPORTATION SECRETARY FEDERICO PENA AND HOUSING
AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS FLEW TO LOS ANGELES
MONDAY ALSO DISPATCHED WERE HIGHWAY ADMINISTRATOR RODNEY SLATER AND FEDERAL
AVIATION ADMINISTRATOR DAVID HINSON A SENIOR WHITE HOUSE AIDE AND A TOP
ASSISTANT TO COMMERCE SECRETARY RON BROWN WHO HAS SPEARHEADED CONTINUING
ADMINISTRATION EFFORTS TO HELP CALIFORNIA'S WOBBLY ECONOMY ALSO ARE ON
HAND SOME 2000 FEDERAL EMPLOYEES ALREADY ARE WORKING ON THE RELIEF EFFORT
AND FEDERAL ASSISTANCE CHECKS ARE EXPECTED TO START MOVING TO LOS ANGELES
RESIDENTS IN FIVE DAYS

THIS INSTANT ATTENTION SAYS SOMETHING ABOUT THE GRAVE PROBLEMS SOUTHERN
CALIFORNIA NOW FACES IN THE EARTHQUAKE'S AFTERMATH BUT IT ALSO UNDERSCORES
AN IMPORTANT POLITICAL FACT OF LIFE IN MANY WAYS CALIFORNIA IS THE MOST
IMPORTANT STATE IN THE UNION TO THE CLINTON WHITE HOUSE AND IT SIMPLY CAN'T
AFFORD TO DROP THE BALL ON EARTHQUAKE DAMAGE RELIEF

MR CLINTON WAS THE FIRST DEMOCRAT IN 28 YEARS TO CARRY CALIFORNIA IN A
PRESIDENTIAL ELECTION AND HOLDING ONTO THE NATION'S MOST POPULOUS STATE IS
CENTRAL TO DEMOCRATIC STRATEGIES FOR SECURING A NEW LONGTERM BASE OF
SUPPORT IN THE WEST LONG BEFORE THE EARTHQUAKE HIT LOS ANGELES THE
ADMINISTRATION HAD ASSIGNED A TEAM OF OFFICIALS TO LOOK FOR WAYS TO HELP THE
STATE'S ECONOMY RECOVER FROM DEFENSESPENDING CUTBACKS AND A LONGLASTING
RECESSION

OFFICIALS FROM SIX FEDERAL DEPARTMENTS AND AGENCIES MEET DAILY TO DISCUSS
HELPING CALIFORNIA'S ECONOMY AND AMONG OTHER THINGS THEY HAVE HELPED SPEED
DISBURSEMENT OF FUNDS TO HELP CONVERT CALIFORNIA'S DEFENSE INDUSTRY TO
NONDEFENSE APPLICATIONS IN ADDITION TWO FULLTIME COMMERCE DEPARTMENT
OFFICIALS HAVE BEEN STATIONED IN CALIFORNIA TO LOOK FOR WAYS TO HELP

NOW ADMINISTRATION OFFICIALS ARGUE THAT THE NETWORK OF OFFICIALS FOCUSING
ON CALIFORNIA SHOULD HELP IT RESPOND MORE QUICKLY TO THE NEW DISASTER

THE MOST IMPORTANT THING IS THAT THERE IS A MECHANISM NOW COMMERCE
SECRETARY BROWN SAID IN AN INTERVIEW THERE IS A MECHANISM FOR FEELING THE
PULSE

MR BROWN ESTIMATED HE HAS MADE A DOZEN TRIPS TO CALIFORNIA IN THE PAST
YEAR AND MR CLINTON HIMSELF HAS TRAVELED THERE EIGHT TIMES AND NOW THAT
DISASTER HAS STRUCK LOS ANGELES AGAIN THE ADMINISTRATION HAS NO INTENTION
OF REPEATING WHAT THEY PERCEIVED AS A MISTAKE MADE BY PRESIDENT BUSH IN
FAILING TO GO TO THE CITY QUICKLY AFTER RIOTS THERE IN 1992

OF COURSE RESPONDING TO THE EARTHQUAKE IS AN EQUALLY BIG CHALLENGE FOR TWO
REPUBLICANS LOS ANGELES MAYOR RICHARD RIORDAN WHO TOOK OFFICE LAST
SUMMER AND CALIFORNIA GOV PETE WILSON WHO FACES A TOUGH REELECTION
CAMPAIGN THIS YEAR IRONICALLY MANY POLITICAL ANALYSTS THINK THAT IF GOV
WILSON MOUNTS A STRONG AND SUCCESSFUL REELECTION CAMPAIGN THIS YEAR HE
WILL BE IN A POSITION TO CHALLENGE MR CLINTON IN THE 1996 PRESIDENTIAL
RACE

BUT FOR NOW THE TWO POTENTIAL ADVERSARIES WILL BE FORCED TO WORK TOGETHER
AND THE STAKES ARE SO HIGH THAT THERE SEEMS LITTLE LIKELIHOOD OF PARTISAN
BICKERING OVER THE EFFORT TO HELP LOS ANGELES RECOVER FROM THE EARTHQUAKE
ALL THE FEDERAL AGENCIES ARE STANDING READY TO HELP SAID RICHARD KRIMM
THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S SENIOR DISASTERRESPONSE OFFICIAL
WE'RE JUST WAITING FOR REQUESTS TO COME IN FROM THE STATE

MR KRIMM SAYS THAT FOR NOW FEMA IS FINANCIALLY ABLE TO HANDLE THE
DISASTER NOTING THAT A FEDERAL DISASTER RELIEF FUND HAS 15 BILLION
AVAILABLE BUT HE ALSO SAID FEMA MAY HAVE TO ASK FOR SUPPLEMENTAL SPENDING
ALREADY FEMA EMPLOYEES ARE OPERATING TELEREGISTRATION CENTERS WHICH LOS
ANGELES AREA RESIDENTS CAN CALL TO REQUEST GRANTS OF AS MUCH AS 12200 FOR
CLOTHING AND FOOD IF FEMA DOES MANAGE TO START ISSUING CHECKS WITHIN FIVE
DAYS THAT WOULD BE ABOUT TWICE AS FAST AS IT DID AFTER HURRICANE HUGO IN
SOUTH CAROLINA IN 1989

FEMA ALSO HAS MOBILIZED FOUR SEARCHANDRESCUE TEAMS FROM THE MIAMI
SEATTLE PHOENIX AND WASHINGTON DC AREAS BUT FEMA OFFICIALS SAID
YESTERDAY THAT CALIFORNIA SEEMS TO BE DOING FINE WITH ITS OWN EIGHT TEAMS
SO TWO OF THE FEDERAL TEAMS HAVEN'T DEPARTED FOR CALIFORNIA AND THE OTHER
TWO ARE IN THE STATE AWAITING ASSIGNMENTS

THE KEY TO LOS ANGELES DISASTER RELIEF MAY LIE IN THE ABILITY OF THE STATE
AND FEDERAL GOVERNMENTS TO MOVE RAPIDLY IN GETTING THE AREA'S VITAL HIGHWAYS
REBUILT THE TRANSPORTATION DEPARTMENT HAS ORDERED HIGHWAY ENGINEERS FROM
OTHER PARTS OF THE COUNTRY TO LOS ANGELES TO INSPECT FREEWAYS

THERE AREN'T ANY RELIABLE HIGHWAY DAMAGE ESTIMATES YET OVERPASSES ON AT
LEAST THREE FREEWAYS HAVE COLLAPSED THOUGH AND AN AIDE TO GOV WILSON
NOTED THAT AFTERSHOCKS WERE CONTINUING TO THREATEN BRIDGES YESTERDAY
AFTERNOON REPAIRING HIGHWAYS IS CERTAIN TO BE EXPENSIVE ALMOST 1 BILLION
IN FEDERAL FUNDS HAVE BEEN SPENT REBUILDING HIGHWAYS DAMAGED IN THE 1989
EARTHQUAKE IN THE SAN FRANCISCO AREA AND CONSTRUCTION IS CONTINUING

FOR NOW THE TRANSPORTATION DEPARTMENT HAS ABOUT 40 MILLION IN EMERGENCY
FUNDS THAT COULD GO TOWARD HIGHWAY RECONSTRUCTION IN LOS ANGELES AND THE
STATE ALSO COULD BORROW ABOUT 100 MILLION AGAINST INTERSTATEHIGHWAY FUNDS
THAT VARIOUS STATES HAVE LEFT UNSPENT

BEYOND THAT PRESIDENT CLINTON WILL HAVE TO ASK CONGRESS FOR SUPPLEMENTAL
SPENDING AND THAT WILL POSE TRICKY POLITICAL PROBLEMS WHILE MR CLINTON
COULD SEEK AN EXEMPTION FROM BUDGET CAPS ON DOMESTIC SPENDING AS HE DID
WITH MIDWEST FLOOD RELIEF LAST YEAR THAT WOULD MEAN THAT SPENDING ON
CALIFORNIA'S QUAKE RELIEF WOULD INCREASE THE DEFICIT ON THE OTHER HAND
SHIFTING FUNDS FROM OTHER STATES' PROGRAMS TO STAY WITHIN THE BUDGET CAPS
COULD ANGER THE OTHER STATES MANY OF WHICH ARE ALREADY SEEKING TO INCREASE
THEIR SHARE OF TRANSPORTATION OUTLAYS

EVEN BEFORE THE EARTHQUAKE CALIFORNIA OFFICIALS WERE STRUGGLING WITH SEVERE
BUDGET CONSTRAINTS BECAUSE OF THE STATE'S ECONOMIC PROBLEMS AS A RESULT
THEY SAY IT'S PARTICULARLY IMPORTANT TO THEM THAT FULL FEDERAL COVERAGE OF
HIGHWAYREBUILDING COSTS BE EXTENDED BEYOND THE NORMAL 180DAY PERIOD FOR
DISASTERS UNDER EXISTING LAWS NORMALLY AFTER THAT PERIOD THE FEDERAL
GOVERNMENT WOULD COVER AS MUCH AS 90 OF THE COSTS OF BUILDING NEW HIGHWAYS
TRANSPORTATION DEPARTMENT OFFICIALS SAY THEY HAVEN'T YET RECEIVED A FORMAL
REQUEST FOR AN EXTENSION

MEANWHILE THE EARTHQUAKE IS ALMOST CERTAIN TO CAUSE THE CLINTON
ADMINISTRATION TO BACK OFF FROM ITS RECENT THREAT TO WITHHOLD FROM
CALIFORNIA AS MUCH AS 800 MILLION IN FEDERAL HIGHWAY FUNDS BECAUSE OF THE
STATE'S FAILURE TO COMPLY WITH THE 1990 CLEAN AIR ACT THE ENVIRONMENTAL
PROTECTION AGENCY INFORMED THE STATE EARLIER THIS MONTH THAT IT WOULD CUT
OFF THE FUNDS THIS SPRING IF THE STATE DIDN'T BRING ITS AUTOMOBILE
INSPECTION PROGRAM IN LINE WITH NEW FEDERAL REQUIREMENTS BUT EVEN BEFORE
THE EARTHQUAKE MANY QUESTIONED WHETHER THE EPA WOULD CARRY OUT ITS THREAT
AGAINST A FINANCIALLY STRAPPED POLITICALLY IMPORTANT STATE THAT IS
GENERALLY VIEWED AS BEING ON THE CUTTING EDGE OF CLEANAIR REGULATION

MANAGEMENT AGENCY AND DEPARTMENT OF TRANSPORTATION 9401190083 940119
BUSINESS BRIEF IPSCO INC STEELMAKER DECIDES ON IOWA AS SITE OF
PROPOSED MINIMILL

IPSCO INC SAID IT CHOSE MUSCATINE COUNTY IOWA AS THE SITE FOR ITS
PROPOSED 360 MILLION FLATROLLED STEEL MINIMILL

THE STEELMAKER BASED IN REGINA SASKATCHEWAN ANNOUNCED PLANS TO BUILD THE
MILL LAST FALL BUT HADN'T CHOSEN A LOCATION UNTIL NOW THE MILL WOULD
PRODUCE ONE MILLION TONS ANNUALLY AND EMPLOY 300 PEOPLE STARTUP IS
SCHEDULED FOR EARLY 1996

IPSCO SAID CONSTRUCTION OF THE MILL IS CONDITIONED ON A NUMBER OF APPROVALS
FROM THE IOWA STATE GOVERNMENT INCLUDING A CHANGE TO THE LAW TO PERMIT THE
COMPANY TO OWN THE LAND FOR THE MILL

IPSCO WHICH ALSO HAD CONSIDERED A SITE IN KENTUCKY SAID IT CHOSE THE IOWA
LOCATION BECAUSE OF FAVORABLE TRANSPORTATION AND ENERGY COSTS LOCAL TAX
LEVIES AND COUNTY AND STATE SUPPORT FOR INFRASTRUCTURE 9401190082 940119
MADE IN AMERICA BECOMES A BOAST IN EUROPE  BY DANA MILBANK STAFF
REPORTER OF THE WALL STREET JOURNAL

LIKE OTHER US COMPANIES TIFFANY & CO DETECTS A NEW SCENT IN EUROPE CALL
IT EAU D'AMERIQUE

WHEN THE MANHATTAN JEWELER LAUNCHED ITS TIFFANY FRAGRANCE IN PARIS LAST
JUNE IT HELD A BAGEL BREAKFAST AT THE RITZ SHOWED THE FILM THE MAKING OF
AN AMERICAN JEWELER AND PLAYED GERSHWIN IN THE BACKGROUND WE THINK OUR
AMERICAN APPEAL IS AN ASSET TIFFANY'S SPOKESWOMAN EXPLAINS

AFTER HIDING OR AT LEAST NOT FLAUNTING THEIR YANKEE ROOTS FOR YEARS US
COMPANIES IN EUROPE ARE NOW PROUD TO BE AMERICAN THAT'S BECAUSE EUROPEAN
CONSUMERS IT SEEMS ARE PROUD TO BUY AMERICAN AMERICAN CONSUMERGOODS
COMPANIES ARE FINDING THAT MANY EUROPEANS SEE THE USA LABEL AS A STAMP OF
QUALITY

BERNARD BARNETT EDITORIAL DIRECTOR OF CAMPAIGN A UK ADVERTISING
MAGAZINE SAYS THE IDEA OF ASSOCIATING AMERICA WITH HIGH QUALITY IS QUITE A
NEW THING IN THIS MARKET

TO BE SURE EUROPEANS HAVE LONG SHOWED ENTHUSIASM FOR MARLBORO CIGARETTES
LEVI'S JEANS AND COCACOLAPRODUCTS WITH STRONG AMERICAN IDENTIFICATION BUT
NOW USING DOWNHOME AMERICAN IMAGERY IN ADVERTISING AND MARKETING EVEN
LUXURY GOODS CAN TRADE ON BEING AMERICAN JEEP CALLING ITSELF THE AMERICAN
LEGEND IN EUROPE HAS SEEN ITS SALES THERE SURGE TO 25000 LAST YEAR FROM
18000 IN 1991 GOODYEAR SELLS ITS TIRES IN GERMANY WITH IMAGES OF INDY CARS
AND PROMOTIONS FOR TRIPS TO THE STATES BUDWEISER AFTER FLOUNDERING IN
EUROPE HAS MADE A NAME FOR ITSELF AS A PREMIUM BRAND WITH AN EARTHY
AMERICAN AD CAMPAIGN BRITISH PRINT ADS TOUT SCHOTT BOMBER JACKETS AND RED
WING WORK BOOTS

IN THE 70S AND 80S THERE WAS A SHIFT TOWARD MUCH MORE EUROPEANNESS THERE
WAS A BACKLASH AGAINST AMERICAN IMAGERY SAYS GARRY TITTERTON EXECUTIVE
VICE PRESIDENT OF THE ADVERTISING FIRM MCCANN ERICKSON EUROPE NOW THE
AMERICAN IMAGE IS VERY POSITIVE IN SOME SURPRISING PLACES

WHAT'S MORE EUROPEANS ARE PAYING PREMIUM PRICES FOR AMERICAN GOODS A
SIXPACK OF BUDWEISER COSTS ABOUT 7 IN BRITAIN COMPARED TO 4 HERE BOSE
LIFESTYLE HIFI EQUIPMENT COSTS 30 MORE IN THE UK UP TO 3000 FOR A
WHOLE SYSTEM

SOME ATTRIBUTE THE NEW DESIRE FOR THINGS AMERICAN TO WORLDWIDE DISTRIBUTION
OF US FILMS AND INCREASING TRAVEL TO THE STATES EUROPEAN TEENAGERS WEAR
BASEBALL CAPS AND LA RAIDERS JACKETS SURVEYS HAVE SHOWN THAT MANY WANT TO
LEARN ENGLISH AND WOULD HAPPILY MOVE TO AMERICA

WAVING THE FLAG DOESN'T AUTOMATICALLY BRING SUCCESS AS DEMONSTRATED BY
THE EURO DISNEY DEBACLE AND IT'S NOT CLEAR HOW FAR US FIRMS CAN STRETCH
THEIR AMERICAN APPEAL GERMAN IS SYNONYMOUS WITH QUALITY ENGINEERING
ITALIAN IS SYNONYMOUS WITH STYLE AND FRENCH IS SYNONYMOUS WITH CHIC SAYS
ROGER PARRY DEVELOPMENT DIRECTOR FOR AEGIS GROUP A LONDON MARKETING FIRM
BUT I'M NOT EXACTLY SURE WHAT AMERICAN CONVEYS IT ISN'T AS CLEAR A
STATEMENT

STILL AMERICAN COMPANIES ARE SEEING HOW FAR THEY CAN PROMOTE THEIR
NATIONALITY LANDS' END THE WISCONSIN MAILORDER FIRM THAT SET UP SHOP IN
THE UK LAST FALL ANNOUNCED IN ITS CATALOG AND ADS WE'RE LANDS' END
DIRECT MERCHANTS FROM AMERICA ITS CATALOG TALKS ABOUT WISCONSIN AND USES
AMERICAN SPELLINGS THE COMPANY SAYS SALES ARE SOARING

THE RUGGED AMERICAN LOOK APPEALS TO TOM WINDRIDGE A RETIRED CARPET
EXECUTIVE FROM NORTHWEST ENGLAND AFTER VISITING THE STATES FOUR TIMES IN
THE PAST FIVE YEARS HE BECAME HOOKED ON THE UNUSUAL QUALITY OF THE GOODS
HE FOUND SO WHEN HE SPIED THE LANDS' END AD IN A BRITISH MAGAZINE HE
ORDERED THE CATALOG AND GOT HIMSELF A DENIM SHIRT

JEEP LAUNCHED ITS CHEROKEE IN EUROPE IN 1988 WITH AN AMERICAN THEME ITS
BIGGEST SPURT CAME LAST YEAR WITH THE DEBUT OF THE TOPOFTHELINE GRAND
CHEROKEE IT MIGHT SEEM FOOLISH TO TRY TO SELL JEEPS IN THE UK WHERE THE
HOME PRODUCT LAND ROVER ALREADY HAS A SOLID REPUTATION BUT THOMAS L
BERNARDIN PRESIDENT OF BOZELL/NORTH A DETROIT ADVERTISING FIRM THAT
HANDLES JEEP SEES MUCH MORE OPENMINDEDNESS TO AMERICAN PRODUCTS THE
LATEST PRINT AD IN THE UK FEATURES A JEEP WITH ENGLISH PLATES IN FRONT OF
A LOG CABIN WITH AN AMERICAN FLAG

KENTUCKYBASED BROWNFORMAN WHICH MANUFACTURES JACK DANIEL'S AND SOUTHERN
COMFORT HAS BEEN USING A USA THEME SINCE IT STARTED SELLING IN EUROPE
MORE THAN TWO DECADES AGO BUT ONLY RECENTLY HAVE JACK DANIEL'S AND SOUTHERN
COMFORT LIQUORS POSTED DOUBLEDIGIT GROWTH IN EUROPE THERE'S NO QUESTION
JACK DANIEL'S AND SOUTHERN COMFORT HAVE BENEFITED ENORMOUSLY FROM BEING
AMERICAN BRANDS SAYS LYONS BROWN MARKETING DIRECTOR FOR NORTHERN EUROPE
JACK DANIEL'S PRINT ADS THROUGHOUT EUROPE AND THE US CONTAIN SCENES OF
LYNCHBURG TENN JIM BEAM'S UK PRINT ADS WHICH COMPETE WITH JACK
DANIEL'S READ THE AMERICAN SPIRIT SINCE 1795

LIKE BROWNFORMAN ANHEUSERBUSCH INC HAS FOUND THAT BLUECOLLAR AMERICANA
GIVES ITS BUDWEISER BRAND CACHET THE BREWER BEGAN ITS PUSH HERE IN 1984
WITH HIGHGLITZ PUBSCENE ADS INCLUDING A TAKEOFF ON THE TOP GUN MOVIE
AFTER FIVE YEARS OF LACKLUSTER SALES BUDWEISER SWITCHED TO A MORE DOWNHOME
THEME AND A NEW SLOGAN THE GENUINE ARTICLE PRINT ADS INCLUDE MONTANA
LAKE FISHING AND A NEVADA TRUCK STOP A TELEVISION AD RUNNING IN SPAIN
SWEDEN AND ITALY PORTRAYS A CARD PLAYER'S TRAIN RIDE THROUGH UTAH

SEEING OTHERS' SUCCESS SOME US COMPANIES WITH NO CLEAR AMERICAN IMAGE ARE
CREATING ONE A BRITISH AD FOR BLISTEX FOR EXAMPLE IS A TESTIMONIAL FROM A
FICTITIOUS DOPEY BLOND MISS IDAHO LOVELY LIPS WHO DECLARES THE STUFF
AMERICA'S BESTSELLING LIP CREAM

NORDIC TRACK A UNIT OF ACTON MASSBASED CML GROUP INC FOUND THAT MOST
EUROPEAN CONSUMERS THOUGHT NORDIC SPORT SKI MACHINES WERE SCANDINAVIAN SO
IT LAUNCHED AN AD WITH THE HEADLINE NOW FROM THE USA THE WORLD'S BEST
AEROBIC WORKOUT THE AD MENTIONS AMERICAN DOCTORS' ENDORSEMENTS AND ITS
BROCHURE BOASTS THAT IT HAS SOLD TWO MILLION IN AMERICA NORDIC TRACK HAS
SOLD TENS OF THOUSANDS SINCE IT OPENED IN THE UK IN OCTOBER 1992 EVEN
THOUGH ITS PRICE IS 50 HIGHER IN EUROPE IT'S ALSO MOVING INTO GERMANY THE
NETHERLANDS AND FRANCE

BOSE CORP THE AMERICAN MAKER OF LIFESTYLE HIFI SYSTEMS HAS TRIED A
SIMILAR TACK WHEN IT LAUNCHED ITS FULL LINE IN EUROPE IN SEPTEMBER AT A
30 PREMIUM TO THE US IT USED PRINT ADS FEATURING PRAISE FROM THE NEW
YORK TIMES ITS TELEVISION ADS AND SHOWROOM VIDEOS TALK ABOUT ITS FOUNDER'S
AFFILIATION WITH THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND IT BRAGS
THAT ITS SYSTEMS ARE USED IN THE STATES IN GM CARS AND BY NASA

EUROPE'S CUSTOMERS ARE TUNING IN TO THAT MESSAGE MATTHEW OXFORD A YOUNG
CIVIL SERVANT FROM CORNWALL IN SOUTHWEST ENGLAND SPLURGED ON A SYSTEM
JUNKING HIS BRITISH MODEL MR OXFORD SAYS HE USED TO HAVE A TYPICALLY
EUROPEAN ATTITUDE TOWARD THE US RATHER TACKY LACKING IN TASTE BUT
AFTER FOUR AMERICAN VACATIONS HE'S REVISED HIS OPINION AT A FILM STUDIO IN
FLORIDA HE SPIED THE BOSE SYSTEM AT WORK AND DECIDED TO GET ONE FOR
HIMSELF I'M MUCH MORE PREPARED TO ACCEPT AMERICAN GOODS MR OXFORD SAYS
I'M VERY FOND OF AMERICA 9401190081 940119 GUESS WHAT MOVIE 
EARTHQUAKE VICTIMS RUSHED OUT TO RENT  EARTHQUAKE' OF COURSE 
IT IS COUNTERPHOBIC BEHAVIOR' A CITY LOOKS FOR MIRACLES  BY
DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL

LOS ANGELES HERE'S HOW SOME LOS ANGELENOS COPED WITH THE TRAUMA OF THE
WORST EARTHQUAKE TO HIT THE CITY THIS CENTURY THEY RENTED THE MOVIE
EARTHQUAKE

IT'S KIND OF SICK IN A WAY SAYS STEPHEN MARCUS A CLERK AT THE VIDEO WEST
STORE IN WEST HOLLYWOOD WHICH RENTED ALL THREE OF ITS COPIES OF
EARTHQUAKE MONDAY NIGHT AND COULD HAVE RENTED DOZENS MORE

IN THE 1974 FILM THE CITY OF ANGELS IS HELLISHLY LEVELED BY THE BIG ONE

BUT LEAVE IT TO AN EXPERT TO HAVE A GENTLER VIEW THAN MR MARCUS IT'S
COUNTERPHOBIC BEHAVIOR TO MAKE MANAGEABLE FEELINGS THAT ARE PRETTY
UNMANAGEABLE SAYS LOS ANGELES PSYCHOLOGIST MELINDA PETERS WHO HAS FOUND
COMFORT FROM HER OWN POSTQUAKE ANXIETIES BY LISTENING TO HER PATIENTS'
PROBLEMS IF YOU LOOK AT SOMETHING BAD OR WORSE THAN WHAT YOU'RE GOING
THROUGH IT MAKES YOUR SITUATION SEEM LESS SCARY

CALL IT LAUGHING IN THE FACE OF TRAGEDY BUT IN A CITY THAT HAS LURCHED FROM
ONE CALAMITY TO ANOTHER OVER THE PAST 20 MONTHS RESIDENTS HAVE DEVELOPED
UNUSUAL COPING MECHANISMS TO GET THROUGH THIS LATEST DISASTER

CAROL AND JOSEPH OZER MANAGED TO CRACK A FEW JOKES EVEN AS THEY SHOWED A
REPORTER THEIR SHERMAN OAKS APARTMENT WHICH NOW HAS GAPING CRACKS IN THE
WALLS AND GLASS AND DEBRIS STREWN THROUGHOUT DO YOU LIKE WHAT WE'VE DONE
TO THE PLACE WE CALL IT CALIFORNIA EARTHQUAKE MODERN SAYS MR OZER A
PARTTIME MOVIE EXTRA

BY DAYBREAK MONDAY EARLIER SCENES OF TERROR AND DEVASTATION HAD ALREADY
MUTATED INTO TOURIST ATTRACTIONS FOR SQUADS OF ANGELENOS WHO HAD ENDURED
COUNTLESS AFTERSHOCKS OF THE 66 QUAKE JUST OFF LA CIENEGA BOULEVARD WHERE
THE SANTA MONICA FREEWAY PANCAKED INTO A STORAGE WAREHOUSE BELOW GAWKERS
AND EVEN A CADRE OF ONDUTY POLICEMEN CLAMORED TO GET THEIR PICTURES SNAPPED
IN FRONT OF THE WRECKAGE

MICHAEL THOMAS AN ENGINEER AND HIS FRIENDS LEFT WITH POCKETFULS OF
PAVEMENT CHUNKS THAT STILL BORE YELLOW FREEWAY STRIPING SOUVENIRS FOR MY
FRIENDS AND FAMILY HE EXPLAINS JUST LIKE THE BERLIN WALL

AS RESIDENTS GROPED TO MAKE SENSE OF THE RANDOM DESTRUCTION AROUND THEM
FATE'S TINIEST ACTS OF MERCY WERE TAKING ON ALMOST MIRACULOUS SIGNIFICANCE
EUNI BROWN NARROWLY ESCAPED WITH HER LIFE FROM THE BUILDING ADJACENT TO THE
DEVASTATED NORTHRIDGE MEADOWS APARTMENT COMPLEX WHERE AT LEAST 16 PEOPLE
DIED SHE WAS AMAZED TO FIND THAT ALTHOUGH HER APARTMENT WAS DEMOLISHED
HER PRIZED PATIO PLANTS WERE LEFT UNTOUCHED I COULDN'T BELIEVE IT SHE
SAYS THREE OF MY PLANTS WERE STILL SITTING PERFECTLY BALANCED THERE ON THE
BALCONY RAILING

COLEENE KILEY MOPPING UP IN HER SYLMAR HOME MARVELS THAT THE ONLY MEMENTO
THAT DIDN'T COME TUMBLING OFF THE WALLS WAS A CHERISHED ITALIAN CERAMIC DISH
DEPICTING THE HOLY FAMILY AND THAT WAS THE ONLY THING THAT WAS LEFT ON THE
WALLS IN THE 1971 QUAKE TOO SAYS MRS KILEY A DEVOUT CATHOLIC

PARISHIONERS AT THE METROPOLITAN COMMUNITY CHURCH IN CULVER CITY LOCATED
IN A 65YEAROLD TURKISHSTYLED BUILDING THAT WAS ONCE A POPULAR WATERING
HOLE FOR MGM MOGULS WERE AMAZED TO FIND THE ONLY DAMAGE WAS TO A GARISH
BRICK MINARET IN THE BUILDING'S FRONT WE'RE REMODELING ANYWAY AND I GUESS
GOD JUST DIDN'T THINK THE OLD TOWER LOOKED RIGHT SAYS JUDY HOSNER A
CHURCH MEMBER AND ENGINEER

COMMUNITY AND SPIRIT AREN'T WORDS OFTEN USED IN THE SAME SENTENCE HERE
BUT THE EARTHQUAKE HAS HAD THE UNDENIABLE EFFECT OF BRINGING TOGETHER THIS
SPRAWLING CITY OF STRANGERS I WENT OUTSIDE WITH A FLASHLIGHT AFTER THE
QUAKE AND IT WAS A BLOCK PARTY WITH ALL THESE PEOPLE I'D NEVER MET BEFORE
SAYS VICKI GREENLEAF WHO AWOKE TO THE SOUND OF EVERYTHING I OWN AND WORKED
SO HARD FOR CRASHING TO THE GROUND NEIGHBORS HUDDLED AROUND CAR RADIOS FOR
NEWS REPORTS AND SWAPPED SURVIVAL STORIES

LONG AFTER THE INITIAL TREMORS HAD SUBSIDED STRANGERS WERE REACHING OUT TO
ONE ANOTHER FOR SUPPORT PEOPLE IN THE HARDHIT SAN FERNANDO VALLEY 
WITHOUT ELECTRICITY AND WORRIED THAT THEIR TRACT HOMES MIGHT NOT WITHSTAND
THE AFTERSHOCKS PITCHED TENTS ON THEIR FRONT LAWNS AND INVITED ONE
ANOTHER TO IMPROMPTU BARBECUES ON THE MENU ALL THE MEAT IN THEIR FREEZERS
DESTINED TO SPOIL BECAUSE OF POWER OUTAGES

IN WEST HOLLYWOOD ACTRESS ESTELLE HARRIS OF TV'S SEINFELD WHO HAD
ARRIVED FROM NEW YORK TO VISIT HER SON GLEN JUST IN TIME FOR THE QUAKE 
ORGANIZED AN IMPROMPTU POTLUCK DINNER FOR THE NEIGHBORS AT HER SON'S
APARTMENT COMPLEX JUST LIKE THE YENTALIKE MATRIARCH SHE PLAYS ON THE
SITCOM MRS HARRIS SPENT THE EVENING FUSSING OVER THIS RAGTAG BROOD OF
SHAKEN SOULS MAKING SURE THEY ATE PLENTY OF HER BARLEY SOUP AND RUMP ROAST

I'M A MOTHER AND WHEN SOMETHING LIKE THIS HAPPENS I WORRY THAT THERE
WON'T BE ANY MORE FOOD MRS HARRIS SAYS SHE MADE SURE THE GROUP LEFT WITH
HER SOUP RECIPE AND EVEN INTERRUPTED THE NONSTOP EARTHQUAKE COVERAGE ON TV
TO POP IN A VIDEOTAPE OF HERSELF MAKING THE SOUP ON LIVE WITH REGIS &
KATHIE LEE

THIS BEING LOTUSLAND PSYCHICS AS WELL AS PSYCHOLOGISTS HAVE BEEN ON THE
FRONT LINES HELPING TO GET ANGELENOS BACK TO EMOTIONAL EQUILIBRIUM ANNIE
GUY WHO READS PALMS AND TAROT CARDS FROM HER SHOP UP THE STREET FROM THE
COLLAPSED SANTA MONICA FREEWAY SAYS SHE HAS SEEN PLENTY OF NEW CUSTOMERS IN
THE PAST TWO DAYS THEY WANT TO KNOW IF THERE WILL BE A MUCH LARGER
EARTHQUAKE THAN WE'VE ALREADY HAD AND IF WE WILL RECOVER SAYS MS GUY 
ADDING THAT HER PSYCHIC POWERS TELL HER THERE ISN'T GOING TO BE ANYTHING
MAJOR IN THE WAY OF AFTERSHOCKS MY ADVICE  IS TO HAVE FAITH AND
THINK POSITIVE A LOT OF PRAYER AND MEDITATION WILL HELP

MAYBE BUT MR AND MRS OZER AREN'T TAKING ANY CHANCES AND HAVE DECIDED TO
MOVE OUT OF THEIR SHERMAN OAKS APARTMENT FOR SOMEWHERE ELSE IN THE AREA THE
OMENS HAVE BEEN JUST TOO GREAT THE NIGHT AFTER WE MOVED IN IN 1992 THE
LANDERS QUAKE HIT MRS OZER SAYS IT'S TIME TO LEAVE 9401190080
940119 BUSINESS BRIEF USX CORP MINING UNIT IDLES FACILITY PLANS
LAYOFF OF 500 WORKERS

US STEEL MINING CO SAID IT WILL CLOSE ITS MAPLE CREEK COAL MINE AND
PREPARATION PLANT IN WASHINGTON COUNTY PA CITING SEVERE ROCK
CONDITIONS

THE CONDITIONS MAKE CONTINUED MINING OF COAL ECONOMICALLY INFEASIBLE THE
COMPANY SAID CALLING THE PROBLEM UNFORESEEN AND UNPREDICTABLE

THE OPERATIONS WERE IDLED JAN 11 AND US STEEL MINING EXPECTS TO BEGIN
LAYOFFS ON FRIDAY OF THE 500 WORKERS AFFECTED BY THE MOVE US STEEL MINING
HAS 2000 EMPLOYEES

A SPOKESMAN SAID THE COMPANY LIKELY WILL RECORD A CHARGE IN THE FOURTH
QUARTER RELATED TO THE CLOSING THOUGH THE AMOUNT HAS YET TO BE DETERMINED
THE MAPLE CREEK OPERATIONS ARE SCHEDULED TO CLOSE MARCH 31

US STEEL MINING IS A UNIT OF US STEEL GROUP WHICH IN TURN IS OWNED BY
USX CORP ALL ARE BASED IN PITTSBURGH 9401190079 940119 COMMODITIES 
WHEAT FUTURES PRICES DECLINE AS THE PROSPECTS FOR US GRAIN EXPORTS TO
RUSSIA AND CHINA DIM  BY SCOTT KILMAN STAFF REPORTER OF THE WALL
STREET JOURNAL

CHICAGO PRICES OF WHEAT FUTURES CONTRACTS FELL AS PROSPECTS FOR US
GRAIN EXPORTS TO RUSSIA AND CHINA DIMMED

THE ABRUPT RESIGNATION OF YEGOR GAIDAR RUSSIA'S ECONOMICREFORM CZAR
DAMPED SPECULATION THAT MOSCOW MIGHT BE INTERESTED IN IMPORTING AS MUCH AS
735 MILLION BUSHELS OF SUBSIDIZED US WHEAT BY JUNE MR GAIDAR WAS WIDELY
SEEN IN GRAINTRADING CIRCLES AS CENTRAL TO ANY CREDIT AGREEMENT THAT WOULD
CLEAR THE WAY FOR A GRAIN DEAL

WHEAT PRICES WERE ALSO DEPRESSED BY REPORTS THAT THE US AGRICULTURE
DEPARTMENT IS BALKING AT TERMS OF A CHINESE BID TO BUY 105 MILLION BUSHELS
OF SUBSIDIZED WHEAT CHINA HAS ALREADY ARRANGED THE PURCHASE OF 299 MILLION
BUSHELS OF US WHEAT

MEANWHILE SOME US TRADERS EXPECT TO SEE MORE COMPETITION FROM MAJOR WHEAT
EXPORTERS THE AUSTRALIAN WHEAT BOARD RAISED ITS ESTIMATE OF THAT NATION'S
IMPENDING WHEAT HARVEST TO 6687 MILLION BUSHELS FROM 6357 MILLION BUSHELS

THE SUBZERO TEMPERATURES ACROSS THE US FARM BELT IN RECENT DAYS NORMALLY
WOULD LIFT CORN PRICES LIVESTOCK EAT MORE GRAIN IN SUCH COLD CONDITIONS
BECAUSE THEY NEED MORE ENERGY TO STAY WARM BUT CORN PRICES SANK AMID A WAVE
OF PROFITTAKING ACCORDING TO TRADERS THE MANAGERS OF LARGE COMMODITY
FUNDS SOLD FUTURES CONTRACTS REPRESENTING 30 MILLION BUSHELS OF CORN

THE MARCH CORN FUTURES CONTRACT AT THE CHICAGO BOARD OF TRADE FELL SIX CENTS
A BUSHEL TO SETTLE AT 30125 A BUSHEL CORN PRICES HAVE CLIMBED SINCE
OCTOBER BECAUSE US GRAIN STOCKPILES ARE EXPECTED TO SHRINK TO UNUSUALLY
LOW LEVELS THIS YEAR IN THE WAKE OF THE 1993 CROP DISASTER IN THE MIDWEST

SOYBEAN PRICES SETTLED LOWER RICHARD LOEWY PRESIDENT OF AGRESOURCE CO
CHICAGO SAID TRADERS ARE WATCHING TO SEE WHETHER A DRY SPELL DEVELOPS OVER
A SOYBEANGROWING REGION IN BRAZIL WHERE THE CROP IS IN ITS CRITICAL GROWTH
STAGE

BECAUSE OF IDEAL WEATHER EARLIER THIS GROWING SEASON ANALYSTS HAVE BEEN
FORECASTING BRAZIL TO GENERATE RECORD SOYBEAN YIELDS DURING THE APRIL AND
MAY HARVEST BRAZIL IS A MAJOR COMPETITOR OF THE US IN THE WORLD SOYBEAN
MARKET SO A SMALLER HARVEST THERE WOULD TEND TO SUPPORT US PRICES

IN OTHER COMMODITY MARKETS YESTERDAY

ENERGY THE PROMISE OF WARMER WEATHER AND AN APPARENTLY WIDESPREAD BELIEF
THAT HEATING OIL FUTURES WERE TRADING TOO HIGH COMBINED TO PUSH PETROLEUM
FUTURES PRICES LOWER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE
FEBRUARY HEATING OIL LOST 319 CENTS TO SETTLE AT 4949 CENTS A GALLON AND
PULLED CRUDE LOWER AS WELL CRUDE OIL FOR FEBRUARY DELIVERY FELL 23 CENTS
TO SETTLE AT 1487 A BARREL NATURAL GAS ALSO LOST GROUND ON FORECASTS OF A
WARMING TREND FEBRUARY NATURAL GAS FELL 42 CENTS TO 2318 PER MILLION
BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET

PRECIOUS METALS GOLD AND SILVER FUTURES PRICES ROSE ON HEALTHY INVESTOR
DEMAND AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP
140 TO 39360 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES
CONTRACT ROSE 15 CENTS TO 5347 AN OUNCE INVESTOR DEMAND FOR PRECIOUS
METALS REMAINS STRONG BECAUSE OF PERCEPTIONS THAT THE US ECONOMY IS
ENCOUNTERING A SUSTAINED RECOVERY ANALYSTS SAID 9401190078 940119
BUSINESS BRIEF FLEMING COS FOOD FIRM TO CUT WORKERS TAKE BIG
4THPERIOD CHARGE

FLEMING COS UNVEILED A CONSOLIDATION PLAN THAT IS EXPECTED TO SLASH ITS
WORK FORCE BY 2000 PEOPLE OR 9 AND RESULT IN A PRETAX FOURTHQUARTER
CHARGE OF ABOUT 101 MILLION

THE OKLAHOMA CITY FOOD DISTRIBUTOR SAID THE CHARGE WHICH WILL CREATE A
FOURTHQUARTER LOSS WILL REDUCE EARNINGS BY ABOUT 62 MILLION OR 168 A
SHARE LAST MONTH FLEMING WARNED THAT ITS EARNINGS FOR THE PERIOD WOULD BE
BETWEEN 40 CENTS AND 45 CENTS A SHARE MUCH LESS THAN ANALYSTS HAD FORECAST
BEFORE A 27 MILLION CHARGE RELATED TO EARLY RETIREMENT OF DEBT

IN THE FOURTH QUARTER OF 1992 FLEMING EARNED 24 MILLION OR 66 CENTS A
SHARE

THE COMPANY SAID IT EXPECTS ITS STREAMLINING MOVES TO TAKE PLACE OVER THE
NEXT TWO YEARS WILL REDUCE OPERATING COSTS BY AT LEAST 65 MILLION A YEAR
BUT IT SAID IT FORESEES NO IMPROVEMENT IN EARNINGS FROM ITS CORE OPERATIONS
BEFORE 1995

THE COSTCUTTING MOVES INCLUDE CLOSING FIVE REGIONAL STAFF OFFICES AND
CONSOLIDATING SEVERAL OPERATING DIVISIONS 9401190077 940119 WHO'S NEWS 
WATTS INDUSTRIES INC

WATTS INDUSTRIES INC NORTH ANDOVER MASS CHARLES W GRIGG RESIGNED AS
PRESIDENT AND CHIEF OPERATING OFFICER OF THIS VALVE MAKER TO BECOME CHAIRMAN
AND CHIEF EXECUTIVE OF SPS TECHNOLOGIES IN NEW TOWN PENN WATTS INDUSTRIES
SAID TIMOTHY P HORNE ITS CHAIRMAN AND CHIEF EXECUTIVE WILL ASSUME MR
GRIGG'S RESPONSIBILITIES WATTS ALSO NAMED AS DIRECTORS KENNETH J MCAVOY
ITS CHIEF FINANCIAL OFFICER DAVID A BLOSS SR AN EXECUTIVE VICE
PRESIDENT AND WENDY E LANE CHAIRMAN OF LANE HOLDINGS INC A PRIVATE
EQUITY INVESTOR THE APPOINTMENTS EXPAND BOARD MEMBERSHIP TO EIGHT
9401190076 940119 NEWSPRINT PRODUCTION IN CANADA DECLINED BY 32 IN
NOVEMBER

MONTREAL CANADIAN NEWSPRINT PRODUCTION FELL 32 IN NOVEMBER FROM A YEAR
EARLIER WHILE SHIPMENTS ROSE 18 THE CANADIAN PULP AND PAPER ASSOCIATION
SAID

CANADIAN MILLS OPERATED AT 97 OF CAPACITY IN NOVEMBER UNCHANGED FROM A
YEAR EARLIER THE INDUSTRY GROUP SAID

OUTPUT FOR NOVEMBER WAS 769000 METRIC TONS DOWN FROM 794000 METRIC TONS A
YEAR EARLIER TOTAL SHIPMENTS ROSE TO 799000 METRIC TONS FROM 786000
METRIC TONS A YEAR EARLIER A METRIC TON IS EQUAL TO ABOUT 22046 POUNDS

SHIPMENTS TO THE US FELL 88 FROM A YEAR EARLIER TO 489000 METRIC TONS
DOMESTIC SHIPMENTS ROSE 47 TO 99000 METRIC TONS SHIPMENTS TO OFFSHORE
MARKETS ROSE 365 TO 211000 METRIC TONS

CANADIAN MILLS' STOCKS TOTALED 468000 METRIC TONS AT THE END OF NOVEMBER
COMPARED WITH 498000 METRIC TONS AT THE END OF OCTOBER AND 405000 METRIC
TONS AT THE END OF NOVEMBER 1992 9401190074 940119 PENSION FUNDS VENTURE
ABROAD IN SEARCH OF BIG RETURNS  BY LESLIE SCISM STAFF REPORTER OF
THE WALL STREET JOURNAL

US PENSION FUNDS MAY NOT BE GLOBETROTTERS YET BUT THEY'RE MOVING QUICKLY
IN THAT DIRECTION

IN THE NEXT THREE YEARS THE SHARE OF US PENSION ASSETS INVESTED ABROAD
WILL RISE BY AN AVERAGE OF 50 ACCORDING TO THE LATEST ANNUAL SURVEY BY
GREENWICH ASSOCIATES A PENSION CONSULTING FIRM BY 1996 THE FUNDS 
INCLUDING CORPORATE PENSION FUNDS PUBLIC RETIREMENT SYSTEMS ENDOWMENTS AND
FOUNDATIONS EXPECT TO HAVE 379 BILLION OR 12 OF TOTAL ASSETS INVESTED
IN FOREIGN STOCKS AND BONDS UP FROM 210 BILLION OR 8 OF ASSETS TODAY

THE INCREASE IN FOREIGN INVESTMENTS WILL COME MAINLY AT THE EXPENSE OF US
BONDS WHICH ARE EXPECTED TO DROP TO AN AVERAGE OF 30 OF TOTAL ASSETS IN
1996 FROM 33 TODAY US STOCK HOLDINGS MEANWHILE ARE EXPECTED TO REMAIN
STEADY AT SLIGHTLY MORE THAN 44 OF ASSETS ON AVERAGE THE DATA SHOW

IN 1993 THE FOREIGN HOLDINGS OF US PENSION FUNDS INCREASED BY 53 BILLION
 AN AMOUNT EQUIVALENT TO TWOTHIRDS OF THE ENTIRE CAPITALIZATION OF
SINGAPORE'S STOCK EXCHANGE

A SUBSTANTIAL AMOUNT OF THE 1993 INCREASE CAME FROM NEW PURCHASES RATHER
THAN PRICE APPRECIATION OF EXISTING HOLDINGS SAYS PHILLIP MAISANO
PRESIDENT OF EVALUATION ASSOCIATES A PENSION CONSULTANT BASED IN NORWALK
CONN WHILE EMERGING MARKETS DELIVERED STUNNING DOUBLEDIGIT RETURNS LAST
YEAR MR MAISANO FIGURES THAT ABOUT THREEQUARTERS OF PENSION FUNDS'
FOREIGN INVESTMENTS ARE IN THE LARGER MOREDEVELOPED MARKETS OF EUROPE AND
JAPAN AND BECAUSE THE DEVELOPED MARKETS' OVERALL PERFORMANCE HAS LAGGED
BEHIND THAT OF THE US STOCK MARKET FOR SEVERAL YEARS YOU WOULD HAVE LOST
GROUND WITH THESE HOLDINGS AS A PERCENTAGE OF TOTAL ASSETS HE SAYS

THE BIG MOTIVATION FOR THE PENSION FUNDS' GLOBAL PUSH IS THEIR DESIRE TO
BUOY INVESTMENT RETURNS AND THUS LOWER THE AMOUNT OF NEW CASH THAT MUST
BE SET ASIDE FOR RETIREES AT THE EXPENSE OF TAXPAYERS AND COMPANY
SHAREHOLDERS WITH US STOCK VALUATIONS AT LOFTY LEVELS AND INTEREST RATES
ABYSMALLY LOW FUNDS MUST LOOK FARTHER AFIELD AND SHOULDER EXTRA RISK 
TO TRY TO MAINTAIN THE DOUBLEDIGIT GAINS TO WHICH THEY'VE GROWN ACCUSTOMED
CONSULTANTS SAY

THE DIZZYING VOLATILITY OF SOME FOREIGN MARKETS SUCH AS THE MALAYSIAN STOCK
MARKET'S SUDDEN 20 PLUNGE IN RECENT DAYS IS SOMETIMES HARD FOR PENSION
FUNDS TO STOMACH BUT THAT HASN'T DETERRED THE FUNDS FROM WADING DEEPER INTO
INTERNATIONAL WATERS

THE RISKS OF SOME EMERGING MARKETS MAKE ME A LITTLE NERVOUS SAYS RALPH
LAYMAN WHO OVERSEES INTERNATIONAL STOCK INVESTMENTS FOR GENERAL ELECTRIC
CO'S 275 BILLION PENSION PLAN EVEN SO HE SAYS HE FEELS COMFORTABLE
EDGING THE TRUST'S OVERALL FOREIGN STOCK HOLDINGS UP TO 15 THIS YEAR FROM
13 IN 1993 SHORTTERM YOU HAVE TO BE PREPARED FOR VOLATILITY BUT
LONGTERM THE POTENTIAL GROWTH STILL MERITS INTEREST THERE HE ADDS

IN FACT GE EAGER TO BE AMONG THE GLOBAL AVANT GARDE IS LOOKING TO INVEST
IN EMERGING MARKETS THROUGH LESSCONVENTIONAL MEANS THAN EXCHANGELISTED
STOCKS GE HAS HAD SUBSTANTIVE DISCUSSIONS WITH JULIAN ROBERTSON'S TIGER
INTERNATIONAL HEDGE FUND ABOUT PRIVATE INVESTMENT OPPORTUNITIES IN
DEVELOPING COUNTRIES MR LAYMAN SAYS

YOU CANNOT GO AND SIT DOWN WITH ANY PENSIONPLAN SPONSOR TODAY WITHOUT
TALKING ABOUT EMERGING MARKETS SAYS KENNETH ROGERS A MANAGING DIRECTOR AT
PENSION DARIEN CONN CONSULTING FIRM ROGERS CASEY & ASSOCIATES INC
EMERGING MARKETS IS THE FASTEST ASSET CLASS TO BE LEGITIMIZED BY PENSION
FUNDS

EVEN TRADITIONALLY CONSERVATIVE PUBLICSECTOR FUNDS ARE MOVING WITH THE
GLOBAL TREND FOR INSTANCE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S
11 BILLION PENSION FUND WILL RAISE ITS FOREIGNSTOCK HOLDINGS TO 13 OF
ASSETS BY MARCH 31 FROM 8 IN 1993 AND JUST 5 IN 1992 SAYS JOHN
GALLAHUE THE FUND'S EXECUTIVE DIRECTOR GLOBAL BONDS ABSENT BEFORE JUNE
1992 NOW REPRESENT 6 OF THE MBTA'S PORTFOLIO THE FUND ALSO PLANS TO TRADE
FOREIGN STOCKINDEX OPTIONS TO FURTHER TWEAK OUR PERFORMANCE HE ADDS

SUCH MOVES AREN'T ANYTHING RADICAL MR GALLAHUE SAYS BUT THEY AREN'T
FREE FROM RISK EITHER IF SOMETHING GOES WRONG AND IT'S A NEW IDEA YOU'D
BE LOOKING FOR EMPLOYMENT ELSEWHERE HE SAYS

DESPITE THE UPS AND DOWNS OF INDIVIDUAL INVESTMENTS MANY FUNDS EXPECT THAT
LOADING UP ON FOREIGN SECURITIES WILL LOWER NOT RAISE THEIR PORTFOLIOS'
RISK OVER TIME THE REASON RETURNS ON FOREIGN INVESTMENTS HAVE HISTORICALLY
SHOWN LITTLE CORRELATION WITH US INVESTMENTS IN OTHER WORDS BECAUSE THEY
TEND TO ZIG WHEN US MARKETS ZAG SUCH HOLDINGS HELP STABILIZE RETURNS ON A
FUND'S OVERALL PORTFOLIO

HOWEVER ACHIEVING THE BENEFITS OF SUCH DIVERSIFICATION REQUIRES RELATIVELY
HIGH ALLOCATIONS BE MADE TO A GIVEN MARKET FOR IT TO HAVE A MEANINGFUL
IMPACT ON THE OVERALL PORTFOLIO SAYS TIMOTHY CUNNINGHAM EDITOR OF THE
TRUSTEE'S JOURNAL A PUBLICATION FOR PENSION EXECUTIVES WHAT'S MORE THOSE
EXPECTED BENEFITS WILL ONLY MATERIALIZE IF THE OLD CORRELATIONS PERSIST
THERE'S NO GUARANTEE THAT THEY WILL ESPECIALLY WITH US PENSION GIANTS
INCREASINGLY DOMINATING THE BEHAVIOR OF MANY SMALLER FOREIGN MARKETS

MEANWHILE THE GREENWICH SURVEY FIGURES MAY UNDERSTATE THE EXPOSURE OF US
PENSION PLANS TO FOREIGN MARKETS BECAUSE THEY MAY NOT FULLY ACCOUNT FOR
DERIVATIVES FINANCIAL ARRANGEMENTS DESIGNED TO TRACK THE RETURNS OF
INTERNATIONAL STOCKS BONDS AND OTHER ASSETS

FOR INSTANCE THE MICHIGAN RETIREMENT SYSTEM'S 249 BILLION PLAN LAST YEAR
USED EQUITY SWAPS TO GAIN 700 MILLION OF EXPOSURE TO FOREIGN STOCKS
UNDER THE SWAP AGREEMENTS THE PLAN WILL RECEIVE RETURNS LINKED TO THE
PERFORMANCE OF EUROPEAN AND BRITISH STOCK INDEXES IN RETURN FOR A MORE
STABLE STREAM OF PAYMENTS LINKED TO SHORTTERM INTEREST RATES THE
ARRANGEMENT ALLOWS THE MICHIGAN PLAN TO REDUCE TRANSACTION COSTS WHILE
AVOIDING THE HASSLES OF HIRING A FOREIGNSTOCK MANAGER AND WORRYING ABOUT
INTERNATIONAL CUSTODIAL ARRANGEMENTS ACCORDING TO DEPUTY DIRECTOR GORDON
LINSDAY 9401190073 940119 RIGHT IN TUNE COUNTRY MUSIC FINDS NEW
FANS AND A FIRM IN NASHVILLE PROSPERS  GAYLORD'S CABLETV SYSTEMS
 GAIN VIEWERS ADVERTISERS AS US TASTES CHANGE  SURPRISING
SUCCESS IN EUROPE  BY ANITA SHARPE STAFF REPORTER OF THE WALL
STREET JOURNAL

NASHVILLE TENN JUST BEFORE BEING MOBBED AT A GATHERING OF FANS IN
MID1992 NEWLY MINTED SUPERSTAR BILLY RAY CYRUS THREW HIS ARMS AROUND TRACY
STOREY THE PROGRAMMING MANAGER FOR COUNTRY MUSIC TELEVISION THANK YOU
HE GUSHED CMT HAS CHANGED MY LIFE

MERCURY RECORDS HAD RELEASED MR CYRUS'S ACHY BREAKY HEART TO THE 24HOUR
COUNTRYMUSIC CABLE NETWORK WEEKS BEFORE GIVING IT TO RADIO STATIONS THAT
CREATED TREMENDOUS PENTUP DEMAND WHEN THE SONG FINALLY DID HIT THE CHARTS
THE COMPACT DISK THAT CONTAINED IT BECAME THE FASTESTRISING ALBUM DEBUT IN
BILLBOARD MAGAZINE'S HISTORY ECLIPSING EVEN THE BEATLES' 1963 LAUNCH

WE PUT THE BOOSTER ROCKETS UNDER COUNTRY MUSIC SAYS DAVID HALL CMT'S
PRESIDENT IT HAS BEEN SOME LIFTOFF COUNTRY RECORD SALES CLIMBED TO 17 OF
THE TOTAL MARKET IN 1992 FROM ABOUT 9 IN 1990 ACCORDING TO THE RECORDING
INDUSTRY ASSOCIATION OF AMERICA

CMT'S MAJORITY OWNER GAYLORD ENTERTAINMENT CO HAS HAD A SIMILAR SURGE
FOR YEARS THE COMPANY WHICH OWNED NASHVILLE'S GRAND OLE OPRY THE ADJACENT
HOTEL AND THEME PARK AND ASSORTED MEDIA PROPERTIES SEEMED LITTLE MORE THAN
A BACKWATER MEDIA OUTLET CATERING MOSTLY TO A WORKINGCLASS CROWD FROM THE
SOUTH

BUT RECENTLY GAYLORD LIKE A GLITTERY RHINESTONE HAS ATTRACTED ATTENTION IN
BOTH HOLLYWOOD AND WALL STREET IN THE PAST SEVERAL YEARS IT HAS BECOME AN
INFLUENTIAL MEDIA AND ENTERTAINMENT EMPIRE AND VERY PROFITABLE ITS NET
INCOME SOARED TO 29 MILLION IN 1992 FROM NEARLY 2 MILLION IN 1991 ITS
REVENUE ROSE TO 643 MILLION FROM 601 MILLION FOR 1993 ANALYSTS EXPECT A
PROFIT OF ABOUT 38 MILLION BEFORE EXTRAORDINARY ITEMS ON REVENUE OF MORE
THAN 700 MILLION

GAYLORD'S HUGE OPRYLAND HOTEL HAS AN OCCUPANCY RATE RUNNING ABOUT 85 THAT
IS THE ENVY OF THE INDUSTRY ITS THEME PARK IS A MECCA FOR COUNTRYMUSIC
FANS FROM TUSCALOOSA TO TOKYO PARTLY BECAUSE OF GAYLORD'S BUSINESSES
NASHVILLE HAS BECOME AN EVEN MORE POWERFUL MAGNET FOR SUCH STARS AS GARTH
BROOKS DOLLY PARTON AND THE JUDDS AND LARGELY BECAUSE OF THEM THE CITY
HAS BECOME A MAJOR TOURIST DESTINATION

BUT THE PROPERTIES THAT HAVE REALLY PUT GAYLORD ON THE MAP ARE ITS TWO
CABLETELEVISION NETWORKS CMT A KIND OF MTV FOR COUNTRY MUSIC IS ONE OF
THE FASTESTGROWING NETWORKS ON CABLE TV ITS SUBSCRIBERSHIP HAS NEARLY
TRIPLED TO 25 MILLION HOMES SINCE 1991 AND THE NASHVILLE NETWORK IS A
COUNTRYLIFESTYLE STATION WHOSE PRIMETIME RATINGS NOW TOP THOSE OF MTV THE
TWO NETWORKS ARE THE MAIN REASON GAYLORD'S STOCK HAS MORE THAN DOUBLED AND
SPLIT ONCE SINCE ITS INITIAL PUBLIC OFFERING IN 1991 THEY ARE ALSO WHY THE
COMPANY IS RUMORED TO BE A TAKEOVER TARGET IF THE OKLAHOMA BILLIONAIRE
WHO CONTROLS MOST OF ITS STOCK WOULD EVER PART WITH IT

GAYLORD'S SUCCESS MAY BE MOSTLY DUE TO SERENDIPITY AS THE BRAWL FOR
PARAMOUNT COMMUNICATIONS INC ATTESTS THE MARKET FOR CHOICE PROGRAMMING
ASSETS HAS NEVER BEEN HOTTER MOREOVER THE COUNTRYMUSIC AUDIENCE HAS
SWELLED TO 42 OF THE US ADULT POPULATION ROUGHLY TRIPLING IN THE PAST
DECADE ACCORDING TO INDUSTRY ESTIMATES THAT MAY HAVE AS MUCH TO DO WITH
AGING BABY BOOMERS AND THEIR DISENCHANTMENT WITH ROCK MUSIC AS WITH ANY
CLEVER MARKETING MOVES BY GAYLORD

BUT GAYLORD DID PROVIDE THE GENRE WITH THE MEDIA EXPOSURE IT NEEDED TO GET
OUT OF THE BACKWOODS THESE PEOPLE REALLY KNOW WHAT THEY ARE WHETHER THEY
ARE SMART OR LUCKY THEY HAVE ACHIEVED A POSITION IN A MARKET THAT IS
EXPLODING WORLDWIDE SAYS LARRY HAVERTY A MONEY MANAGER AT STATE STREET
RESEARCH A BIG INSTITUTIONAL SHAREHOLDER

THIS MARKS A BIG SWITCH FROM THE EARLY 1980S WHEN COUNTRY MUSIC WAS STILL
CONSIDERED LARGELY REDNECK THEN A MAJOR HIT BY A WELLKNOWN PERFORMER SUCH
AS WILLIE NELSON MIGHT SELL A MILLION RECORDS COMPARED WITH MICHAEL
JACKSON'S THRILLER ALBUM OF 1983 WHICH SOLD 40 TIMES THAT THE GRAND OLE
OPRY AND ITS RADIO SHOW WERE OWNED BY AN INSURANCE COMPANY NLT CORP
PARTLY AS VEHICLES FOR ADVERTISING INSURANCE POLICIES IN THE EARLY 1980S
WHEN THE OPRYLAND HOLDINGS WERE PUT ON THE BLOCK FOLLOWING A BUYOUT OF NLT
WALT DISNEY CO KOHLBERG KRAVIS ROBERTS & CO AND MEMBERS OF THE
ROCKEFELLER FAMILY ALL TOOK A PASS

BUT NOT EDWARD L GAYLORD AN OKLAHOMA BILLIONAIRE WHO HAD MADE A FORTUNE IN
THE NEWSPAPER BUSINESS AND HAPPENED TO BE AN UNABASHED DEVOTEE OF HEE HAW
HE BOUGHT THE OPRYLAND HOLDINGS AND ALSO BOUGHT INTO THE VISION OF ITS
PRESIDENT EW BUD WENDELL FOR A COUNTRY MUSIC AND LIFESTYLE CABLE
NETWORK ALL OF A SUDDEN WE WOKE UP TO THE FACT THAT WE HAD AN OPPORTUNITY
TO PROMOTE COUNTRY MUSIC NATIONALLY AS OPPOSED TO REGIONALLY SAYS MR
WENDELL WHO DESPITE PROPPING AN ACOUSTIC GUITAR NEAR HIS DESK STILL
DRESSES MORE LIKE AN INSURANCE EXECUTIVE THAN A COUNTRYMUSIC MOGUL HE IS
NOW PRESIDENT AND CHIEF EXECUTIVE OF GAYLORD

AT FIRST THE NASHVILLE NETWORK GOT A TEPID RECEPTION FROM ADVERTISERS IT
LOST TENS OF MILLIONS OF DOLLARS BEFORE TURNING A PROFIT IN 1987 BUT
GAYLORD EXECUTIVES KNEW THEY WERE ON TO SOMETHING AS SOON AS THEY WALKED
INTO THE SAVOY HOTEL IN NEW YORK CITY FOR TNN'S ROLLOUT PARTY

THE NEW NETWORK PLAYED TO THE HARDCORE COUNTRY AUDIENCE A CONSERVATIVE
BLUECOLLAR GROUP THAT TENDS TO SPEND WEEKENDS FISHING HUNTING OR CHEERING
ON DRAG RACERS GAYLORD ROLLED OUT COUNTRYMUSIC VARIETY SHOWS SUCH AS
NASHVILLE NOW WHICH MADE ITS HOST RALPH EMERY THE JOHNNY CARSON OF THE
PICKUPTRUCK CIRCUIT AND CATAPULTED MR EMERY'S AUTOBIOGRAPHY TO NO 2 ON
THE NEW YORK TIMES BESTSELLER LIST ON WEEKENDS THE NASHVILLE NETWORK WAS
DOMINATED BY OUTDOORSPORTS SHOWS RANGING FROM SWAMPBUGGY RACING TO MORE
MAINSTREAM ACTIVITIES LIKE BASS FISHING AND AUTO RACING

THE NETWORK BECAME A HIT WITH ADVERTISERS BY DELIVERING THE HEARTLAND
AUDIENCE A HUGE GROUP PARTICULARLY LOYAL TO AMERICANMADE PRODUCTS IT'S
NOT THAT THEY HAVE SOMETHING THAT CAN'T BE GOTTEN ELSEWHERE IT'S THAT THEY
HAVE IT CONCENTRATED SAYS DAVID MARTIN CHIEF EXECUTIVE OFFICER OF
PENTACOM INC A DETROITBASED MEDIA PLANNING AND BUYING AGENCY FOR CHRYSLER
CORP A BIG TNN ADVERTISER

TNN ALSO BEGAN TO CHANGE THE DYNAMICS OF COUNTRY MUSIC BEFORE IT WOULD
TAKE ARTISTS FIVE TO SEVEN YEARS OF PLAYING COUNTY FAIRS AND SCHOOL
AUDITORIUMS BEFORE THEY COULD BREAK NATIONALLY SAYS ED BENSON EXECUTIVE
DIRECTOR OF THE COUNTRY MUSIC ASSOCIATION TNN CONSIDERABLY SHORTENED THAT
TIME FRAME

BUT EVEN AS GAYLORD WAS PLAYING TO THE HEARTLAND COUNTRY MUSIC WAS
BEGINNING TO MOVE WAY BEYOND THAT IT WAS SLOWLY ATTRACTING A MUCH YOUNGER
HIPPER CROWD LURED IN PART BY YOUNGER COUNTRY STARS WHO HAD SHED THE DOLLY
PARTON FLOUNCES AND THE PORTER WAGNER SPANGLES AND WERE BEING GROOMED BY
WARDROBE CONSULTANTS AND MEDIA COACHES

EVEN MORE SURPRISINGLY IT WAS GOING MORE UPSCALE AND MAINSTREAM AS BABY
BOOMERS WITH BABIES OF THEIR OWN TURNED OFF TO GRUNGE ROCK AND HEAVY METAL
IN FAVOR OF COUNTRY'S MORE TRADITIONAL THEMES BETWEEN 1988 AND 1990 SALES
OF COUNTRY RECORDS JUMPED 56 AS SALES OF ROCKANDROLL RECORDS SLUMPED 5

GAYLORD WAS SOMEWHAT AMBIVALENT ABOUT THE NEWCOMERS IT DIDN'T WANT TO DO
ANYTHING TO TURN OFF ITS CORE FOLLOWERS BUT IT WANTED A PIECE OF THE
ACTION IN 1991 IT ACQUIRED A 67 STAKE IN A COUNTRYMUSIC NETWORK THAT HAD
BEEN LAUNCHED BY LOCAL ENTREPRENEURS AND WAS CALLED COUNTRY MUSIC TELEVISION
GROUP W SATELLITE COMMUNICATIONS A WESTINGHOUSE ELECTRIC CORP UNIT OWNS
THE REST GAYLORD QUICKLY TRANSFORMED THE NETWORK INTO CMT WITH SPLASHY
GRAPHICS AND ROUNDTHECLOCK MUSIC VIDEOS OF CHARTTOPPERS SUCH AS REBA
MCENTIRE AND GEORGE STRAIT AND SEXY YOUNG COUNTRY STARS SUCH AS DWIGHT
YOAKAM AND ALAN JACKSON WHO GOT HIS START AS A TNN MAILMAN

THE NEW CHANNEL ATTRACTED A WHOLE NEW CROWD SOME INDUSTRY EXECUTIVES
BELIEVE AS TV VIEWERS SCANNING THE CHANNELS WERE OFTEN FOOLED INTO
THINKING THEY WERE WATCHING MTV SUDDENLY THEY SEE IT'S NOT SO UNHIP TO
LIKE COUNTRY SAYS SCOTT BORCHETTA A VICE PRESIDENT OF MCA RECORDS IN
NASHVILLE

MANY BELIEVE CMT HELPED ACCELERATE THE MARKET'S GROWTH BY 1993 THE
18TO34 AGE GROUP AND PEOPLE EARNING MORE THAN 60000 A YEAR HAD BECOME
THE FASTESTGROWING SEGMENTS OF THE COUNTRYMUSIC AUDIENCE AND THE GENRE WAS
GAINING POPULARITY OUTSIDE THE SOUTH THE COUNTRYMUSIC STRONGHOLD THE
NORTHEAST SHOWED A 48 JUMP LAST YEAR IN COUNTRYMUSIC FANS CMA SAYS WHILE
THE WEST HAD A 19 INCREASE VIDEO HAS PLAYED A HUGE ROLE IN THOSE GAINS
MR BORCHETTA SAYS

THE OVERSEAS MARKET HAS BEEN SURPRISING TOO WHEN GAYLORD LAUNCHED CMT
EUROPE IN OCTOBER 1992 ITS NASHVILLE EXECUTIVES PREPARED A MILLIONDOLLAR
MARKETING CAMPAIGN HOPING TO SLOWLY CULTIVATE A FOLLOWING AND REACH A
MODEST GOAL OF ONE MILLION HOMES BY THE END OF LAST YEAR THEY FOUND TO
THEIR ASTONISHMENT A READYMADE INTERNATIONAL AUDIENCE LONG ENAMORED OF
AMERICA'S COWBOY CULTURE CMT EUROPE HAS SIGNED UP MORE THAN EIGHT MILLION
SUBSCRIBERS WITH SOME IN SUCH UNLIKELY PLACES AS ISRAEL RUSSIA AND
SCANDINAVIA

PERHAPS THE ONLY CLOUD ON THE COMPANY'S HORIZON IS THE FICKLE TASTE OF MOST
CONSUMERS WHO OFTEN DROP FADS AS FAST AS THEY CAN SAY DISCO BUT
COUNTRYMUSIC PROPONENTS CONTEND THAT THE MUSIC WHICH PREDATES VIRTUALLY
ALL OTHER FORMS OF POPULAR MUSIC IS NO PASSING FANCY AND WILL GAIN MOMENTUM
AS CABLE CHANNELS AND RADIO STATIONS PENETRATE MORE MARKETS

ANOTHER QUESTION IS WHAT IS TO BECOME OF AN ENTERPRISE WHOSE LEADERS ARE
GETTING ON IN YEARS MR GAYLORD IS 74 AND MR WENDELL 66 AND PARTLY FOR
THAT REASON THE COMPANY IS FREQUENTLY MENTIONED AS A TAKEOVER CANDIDATE
PARTLY TO PUT SUCH TALK TO REST GAYLORD BROUGHT IN A YOUNGER BUT SEASONED
CHIEF OPERATING OFFICER RICHARD H EVANS WHO HAS RUN BOTH MADISON SQUARE
GARDEN AND RADIO CITY MUSIC HALL THE 49YEAROLD MR EVANS SAYS HIS JOB IS
TO HELP PLAN A CHANGING OF THE GUARD

THE RECLUSIVE MR GAYLORD WHOSE FAMILY CONTROLS 60 OF THE VOTING STOCK AND
45 OF THE EQUITY IN THE COMPANY DECLINED TO BE INTERVIEWED DOW JONES &
CO PUBLISHER OF THE WALL STREET JOURNAL HAS A MINORITY INTEREST IN AN
ELECTRONICPUBLISHING SUBSIDIARY OF ONE OF MR GAYLORD'S PRIVATE COMPANIES
MR WENDELL SAYS HE HIMSELF PLANS TO BE AROUND FOR AT LEAST THREE MORE
YEARS THE COMPANY HAS GIVEN HIM THE FINANCIAL INCENTIVES TO DO SO AND
BESIDES HE SAYS I REALLY WOULD LIKE TO SEE US GET COUNTRY AROUND THE
WORLD

MR WENDELL SAYS THE COMPANY HASN'T ATTRACTED ANY SIGNIFICANT ACQUISITION
ATTENTION I GUESS WE'RE TOO SMALL HE SAYS IF WE ARE A TARGET I'M NOT
AWARE OF IT

SO FOR NOW THE EXECUTIVES SAY THEY PLAN TO CONCENTRATE ON GROWTH AND
GENERATE A 15 AVERAGE ANNUAL INCREASE IN OPERATING CASH FLOW TO DO THAT
GAYLORD WILL FURTHER ITS PUSH OVERSEAS CMT'S INTERNATIONAL ARM COULD
ULTIMATELY BE BIGGER THAN ANYTHING WE'RE DOING HERE SAYS TERRY LONDON
CHIEF FINANCIAL OFFICER

BUT GAYLORD ISN'T IGNORING NASHVILLE IN THE LARGEST CONSTRUCTION PROJECT IN
THE CITY'S HISTORY GAYLORD IS EXPANDING THE OPRYLAND HOTEL WHICH ALREADY
HAS 1891 ROOMS ADDING A THOUSAND MORE ROOMS PLUS CONVENTION SPACE AND
BUILDING A WATERWAY THAT WILL ALLOW WATER TAXIS TO FERRY HOTEL GUESTS
DOWNTOWN GAYLORD IS ALSO TRYING TO BRING NATIONAL BASKETBALL ASSOCIATION
AND NATIONAL HOCKEY LEAGUE TEAMS TO THE CITY

THE COMPANY ALSO INTENDS TO CAPITALIZE ON ITS COUNTRY FRANCHISE IN MANY
WAYS IT WILL CONTINUE TO BOOST MARKETING OF THE ACUFFROSE MUSIC CATALOG IT
BOUGHT IN 1985 WHICH INCLUDES THE WORK OF HANK WILLIAMS SR THE EVERLY
BROTHERS AND ROY ORBISON IT PLANS TO LAUNCH A RESTAURANT/MUSICHALL CHAIN
CALLED THE WILDHORSE SALOON IT HOPES TO EXPAND IN TV HOME SHOPPING AND
WOULD LIKE TO ACQUIRE MORE TOURISM AND SPORTS CONCERNS POSSIBLY INCLUDING
OPERATIONS ON THE SCALE OF RADIO CITY MUSIC HALL OR THE DAYTONA 500 NASCAR
RACES MR EVANS SAYS

IT IS ALSO WORKING TO DEVELOP NEW CABLE NETWORKS POSSIBLY IN THE OUTDOOR
SPORTS AREA TO ROLL OUT WHEN CABLE OPERATORS OPEN UP MORE CHANNELS TO
FINANCE SOME OF THESE PROJECTS THE COMPANY IS TRYING TO SELL THE 27 CABLE
SYSTEMS IT OPERATES IN CALIFORNIA NORTH CAROLINA AND SOUTH CAROLINA A MOVE
THAT IT SAYS COULD RAISE AS MUCH AS 500 MILLION

FOR NOW AT LEAST MR WENDELL DISCLAIMS ANY INTEREST IN DIVERSIFYING
OUTSIDE THE COUNTRYLIFESTYLE MARKET WE'VE PRETTY WELL DEFINED OUR
DIRECTION HE SAYS WE'VE TRIED TO STICK TO OUR KNITTING 9401190072
940118 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 9401190071
940119 TEXAS JOURNAL  LETTERS TO THE EDITOR PANKAU RESPONDS

YOUR ARTICLE ABOUT ME ON JAN 12 PANKAU PI LESS THAN MEETS THE EYE
REFERS TO STATEMENTS ROBERT PACK HAS MADE ABOUT ME I WILL REFUTE THOSE
FALSE INACCURATE AND MISLEADING STATEMENTS

GOVERNMENT RECORDS ALONE DISPROVE SOME OF THE INFORMATION CONTAINED IN THE
ARTICLE FOR EXAMPLE I WILL FURNISH THE COURT AND THE ARBITRATION PANEL
VARIOUS MILITARY RECORDS THAT CONCLUSIVELY SHOW THAT I WAS A MEMBER OF THE
SPECIAL FORCES ALSO KNOWN AS THE GREEN BERETS AND THAT I HAD A
DISTINGUISHED MILITARY SERVICE RECORD CONTRARY TO THE CLAIMS OF ROBERT PACK
AND OTHER SOURCES 9401190070 940119 BUSINESS BRIEF CF INCOME PARTNERS
LP AGREEMENT IS SIGNED FOR SALE OF ASSETS FOR 1665 MILLION

CF INCOME PARTNERS LP SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL THE
ASSETS OF THE PARTNERSHIP TO AN AFFILIATE OF JMB REALTY CORP CHICAGO AND
APOLLO REAL ESTATE ADVISORS LP NEW YORK IN A TRANSACTION THAT AFTER
CERTAIN ADJUSTMENTS IS VALUED AT 1665 MILLION

THE TROUBLED PARTNERSHIP WHOSE INVESTMENT REAL ESTATE INCLUDES SHOPPING
CENTERS AND APARTMENT BUILDINGS SAID IN NOVEMBER THAT A 1825 MILLION PACT
TO SELL MOST OF ITS ASSETS TO AMERICAN CONTINENTAL PROPERTIES GROUP HAD
FALLEN THROUGH

CF INCOME PARTNERS BASED IN LOS ANGELES SAID IT PLANS TO DISSOLVE THE
PARTNERSHIP AND DISTRIBUTE A TOTAL OF ABOUT 132 MILLION OR 1 A UNIT TO
UNIT HOLDERS IF THE DEAL IS COMPLETED

COMPLETION OF THE DEAL IS SUBJECT TO CONDITIONS INCLUDING APPROVAL BY UNIT
HOLDERS AND SETTLEMENT OF LITIGATION 9401190069 940119 SOUTHERN
CALIFORNIA EARTHQUAKE WITH FREEWAYS DOWN DRIVERS FRET ABOUT HOW TO GET
TO WORK  BY RICHARD TURNER AND BENJAMIN A HOLDEN STAFF REPORTERS
OF THE WALL STREET JOURNAL

LOS ANGELES IT'S EVERYBODY'S SECOND QUESTION

WHEN ANY TWO QUAKESHAKEN SOULS ENCOUNTER EACH OTHER IN THE AFTERMATH OF
MONDAY'S EARTHQUAKE HERE ONCE THE PRELIMINARIES ARE OVER HOW ARE YOU
YOUR FAMILY YOUR HOUSE THE NEXT TOPIC IS HOW ARE YOU GOING TO GET TO
WORK

TRAVEL DISRUPTIONS IN A REGION WHOSE CULTURE HAS BEEN DEFINED BY THE
AUTOMOBILE WILL NOT ONLY DRASTICALLY CHANGE PEOPLE'S DAILY LIVES BUT WILL
HAVE LINGERING ECONOMIC CONSEQUENCES AS WELL

THE FREEWAY SYSTEM HAS SIX MAJOR BREAKS IN IT MOST SEVERELY AFFECTING TWO
MAJOR CALIFORNIA LIFELINES THE SANTA MONICA FREEWAY THE MAJOR EASTWEST
ARTERY IN LOS ANGELES AND THE GOLDEN STATE FREEWAY THE STATE'S MAJOR
NORTHSOUTH ROUTE

THE SANTA MONICA IS ONE OF THIS CITY'S BUSIEST COMMUTER FEEDERS LINKING LOS
ANGELES'S AFFLUENT WEST SIDE TO ITS DOWNTOWN THE GOLDEN STATE IS A CRUCIAL
TRUCKFILLED LINK TO THE FRUIT AND VEGETABLE GROWERS OF THE SAN JOAQUIN
VALLEY AND THE HIGHTECHNOLOGY AND OTHER MANUFACTURERS OF NORTHERN
CALIFORNIA

THE GOLDEN STATE IS BUSIER STILL WHEN THOUSANDS OF COMMUTERS WHO LIVE IN THE
SANTA CLARITA AND ANTELOPE VALLEYS HEAD SOUTH TOWARD LOS ANGELES EVEN
BEFORE THE QUAKE THE CONNECTING ANTELOPE VALLEY FREEWAY WHICH CARVES
THROUGH STEEP MOUNTAINS OFTEN WOULD BE BUMPERTOBUMPER BEFORE DAYBREAK

YESTERDAY LARGE CONSTRUCTION EQUIPMENT BEGAN THE TASK OF TEARING DOWN THE
AREA'S FRACTURED ROADWAYS AUTHORITIES SAID THEY HOPED TO PUT THE
CONSTRUCTION PROCESS ON THE FAST TRACK SO THAT REPAIRS WOULD BE COMPLETED BY
THE END OF THE YEAR AT A COST OF ABOUT 100 MILLION ACCORDING TO
PRELIMINARY ESTIMATES

THE MAJOR SANTA MONICA FREEWAY COLLAPSE WILL CLOG ALREADYBUSY COMMERCIAL
STREETS NEARBY THERE'S ONLY ONE REAL ALTERNATE ROAD FOR THE GOLDEN STATE
AND IT WAS JAMMED YESTERDAY EVEN WHEN MOST PEOPLE STAYED HOME FROM WORK
THE ONLY OTHER DRIVING POSSIBILITIES ARE HAIRRAISING ONEHOUR DRIVES
THOUSANDS OF FEET UP INTO THE SAN GABRIEL MOUNTAINS OFTEN ON ICY ROADS OR
WIDE DIVERSIONS TO THE EAST OR TAKING PUBLIC TRANSPORTATION

NICK WALSH AN OFFICIAL WITH THE FEDERAL HIGHWAY ADMINISTRATION SAYS THE
TOPPLED SECTIONS OF HIGHWAY WILL HAVE A SIGNIFICANT IMPACT ON THE
ECONOMICS OF TRUCKING IN SOUTHERN CALIFORNIA

HE SAYS THE CLOSURE OF THE GOLDEN STATE WILL ADD ABOUT THREE HOURS TO THE
TYPICAL 10HOUR TRUCKERS' RUN FROM SAN JOSE TO ANAHEIM MAKING IT ILLEGAL
FOR A SINGLE DRIVER TO MAKE THE TRIP WITHOUT A BREAK THAT'LL BE REFLECTED
IN PRICES TO CONSUMERS HE ADDS

IN THE EARTHQUAKE'S WAKE THERE HAS BEEN MUCH TALK ABOUT INCREASED USE OF
THE CITY'S PUBLIC TRANSPORTATION SYSTEM SUCH AS IT IS OFFICIALS HOPE
EMPLOYERS WILL STAGGER WORKING HOURS TO LESSEN THE RUSHHOUR CRUSH
INCREASED RIDESHARING IS EXPECTED BUT IN A CITY WHERE NIGHTMARISH TRAFFIC
ALREADY IS A MUNICIPAL OBSESSION AS WELL AS A PIECE OF CULTURAL IDENTITY
THE PROSPECT OF A CRIPPLED FREEWAY SYSTEM SEEMS IMPOSSIBLE TO CONTEMPLATE

SOME WILL HAVE TO SEEK RADICAL ANSWERS THERE IS REALLY NO SOLUTION SAYS
ONE COMMUTER BRAD MARKS A LOT OF PEOPLE ARE GOING TO HAVE TO FIND WORK IN
THE OTHER DIRECTION OR JUST PLAIN MOVE

MARY ANN MANDY IS THINKING ABOUT RENTING AN APARTMENT CLOSER TO WORK SHE
COMMUTES WITH 13 OTHERS IN A VAN FOR HER EMPLOYER A HEALTHMAINTENANCE
COMPANY AND THE COMMUTE CURRENTLY TAKES ONEANDAHALF HOURS SHE FIGURES
THAT IT WILL NOW TAKE FOUR THAT'S EACH WAY I HAVE NO IDEA WHAT I'M GOING
TO DO SHE SAYS

THE TRUE TEST MAY NOT COME UNTIL NEXT WEEK YESTERDAY WITH BUSINESSES AND
SCHOOLS HEEDING A MAYORAL CALL TO REMAIN CLOSED MANY FREEWAYS WERE EERILY
EMPTY IT WAS REMINISCENT OF THE 1984 OLYMPICS HERE WHEN PROGNOSTICATIONS
OF NIGHTMARISH TRAFFIC KEPT PEOPLE OFF THE ROADS

THE REST OF THIS WEEK IS GOING TO PLAY LIKE A HOLIDAY WEEK SAYS CHRIS
SIEROTY A PRODUCER FOR METRO TRAFFIC CONTROL WHICH PROVIDES TRAFFIC
REPORTS TO 45 LOCAL RADIO STATIONS EVEN SO THERE WERE LONG DELAYS
YESTERDAY AT SEVERAL SPOTS WHERE FREEWAY TRAFFIC WAS DIVERTED SOMETIMES
BY NATIONAL GUARD TROOPS ONTO SURFACE STREETS

ANGELENOS ALREADY GO TO GREAT LENGTHS TO MAKE THEIR COMMUTES WORK MR
MARKS HEAD OF AN EXECUTIVE SEARCH FIRM LIVES ON A RANCH IN AN AREA OF
SANTA CLARITA KNOWN AS CANYON COUNTRY ON THE OTHER SIDE OF A CRUMBLED
FREEWAY INTERSECTION FOR MR MARKS'S ONEHOUR COMMUTE INTO CENTURY CITY
EVERY DAY HE ALREADY MAKES ADJUSTMENTS TO SAVE TIME SUCH AS BREAKFAST
MEETINGS IN THE SAN FERNANDO VALLEY ON HIS WAY IN SO HE CAN GO OVER THE
HILL INTO WEST LOS ANGELES AT 930 WHEN THE TRAFFIC IS LETTING UP HE HAS
DINNER MEETINGS AT NIGHT TO MISS RUSHHOUR TRAFFIC GOING HOME

NOW HE SAYS I DON'T KNOW HOW I'M GOING TO GET TO WORK IT'S NO WAY TO
RUN A BUSINESS

OLD HABITS WILL DIE HARD FOR SOUTHERN CALIFORNIA DRIVERS ALTHOUGH THE
LINGERING RECESSION HERE HAS REDUCED TRAFFIC JAMS A BIT IN THE PAST FEW
YEARS COMMUTERS STILL AVERAGE MORE THAN 30 MINUTES EACH WAY THE PERCENTAGE
OF THOSE DRIVING SOLO REMAINS STEADY AT ABOUT 80 ONLY 5 RIDESHARE 3
TAKE PUBLIC TRANSPORTATION

IF THERE'S ANYTHING GOOD TO COME OUT OF ALL THIS SAYS STEVE SAVILLE A
SPOKESMAN FOR CALTRANS THE STATE TRANSPORTATION AGENCY IT'S THAT PEOPLE
HERE WILL LEARN THAT THERE'S ANOTHER WAY TO GET AROUND OTHER THAN USING
THEIR CARS OR BEING A SINGLE PERSON IN A CAR

AN OFFICIAL OF THE SAN FRANCISCO BAY AREA'S RAPID TRANSIT SYSTEM SAYS THAT
FOLLOWING THE 1989 LOMA PRIETA EARTHQUAKE RIDERSHIP INCREASED TO AN AVERAGE
OF 335000 A DAY FROM 219000 AFTER DOWNED BRIDGES WERE FIXED RIDERSHIP
STABILIZED AT ABOUT 250000

THE EARTHQUAKE HAD MORE IMPACT ON RIDERSHIP THAN ANY EVENT IN THE LAST 20
YEARS ADDS MICHAEL BURNICK VICE CHAIRMAN OF THE BART REGIONAL TRANSIT
BOARD

CLEARLY COMMUTERS WILL HAVE TO ADAPT MELISSA HARNETT WHO LIVES IN AGUA
DULCE AND WORKS MORE THAN 40 MILES AWAY DOWNTOWN AS A LITIGATION ATTORNEY
IS ADJUSTING HER OWN LIFE I'VE GOT A COURT APPEARANCE LATER THIS WEEK AT
830 IN THE MORNING AND IT LOOKS LIKE I'D HAVE TO LEAVE AT 4 AM SHE
SAYS INSTEAD SHE THINKS THAT THE NIGHT BEFORE SHE'LL JUST STAY IN TOWN
WITH HER FATHER 9401190068 940119 BUSINESS BRIEF GENERAL PUBLIC
UTILITIES CORP COMPANY POSTS 41 DECLINE IN PROFIT FOR FOURTH QUARTER

GENERAL PUBLIC UTILITIES CORP REPORTED A 41 DECLINE IN FOURTHQUARTER NET
INCOME BECAUSE OF INCREASED OPERATING COSTS AND WRITEDOWNS RELATED TO ITS
DEPARTURE FROM A PROJECT IN PENNSYLVANIA

THE PARSIPPANY NJ UTILITY HOLDING COMPANY HAD NET INCOME OF 313
MILLION OR 27 CENTS A SHARE DOWN FROM 527 MILLION OR 47 CENTS A SHARE
A YEAR EARLIER REVENUE INCREASED 25 TO 8615 MILLION FROM 8402
MILLION

GPU TOOK A 25 MILLION WRITEDOWN IN THE QUARTER STEMMING FROM ITS
INVESTMENT IN DUQUESNE LIGHT CO'S PHILLIPS GENERATING STATION IN WESTERN
PENNSYLVANIA GPU ABANDONED THE PROJECT WHEN NEW JERSEY STATE REGULATORS
WOULDN'T PERMIT ITS JERSEY CENTRAL POWER & LIGHT CO UNIT TO PURCHASE A 50
INTEREST IN THE FACILITY

FOR THE YEAR GPU WHICH ALSO OWNS METROPOLITAN EDISON CO AND PENNSYLVANIA
ELECTRIC CO REPORTED NET INCOME OF 2957 MILLION OR 265 A SHARE UP
18 FROM 2516 MILLION OR 227 A SHARE A YEAR EARLIER REVENUE INCREASED
47 TO 36 BILLION FROM 343 BILLION

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GPU SHARES WERE
UNCHANGED AT 29375 9401190067 940119 BUSINESS BRIEF BRUNSWICK CORP
 FIRM TO PAY IRS 55 MILLION TO SETTLE DEDUCTIBILITY CASE

BRUNSWICK CORP SAID IT WILL PAY THE INTERNAL REVENUE SERVICE ABOUT 55
MILLION TO SETTLE A DISPUTE OVER THE DEDUCTIBILITY OF ABOUT 500 MILLION OF
INTANGIBLE ASSETS

THE LAKE FOREST ILL MAKER OF BOATS AND RECREATIONAL PRODUCTS SAID IT HAD
MORE THAN ADEQUATELY RESERVED FOR THE TAX PAYMENT WHICH REPRESENTS TAXES
AND NET INTEREST FOR 1986 THROUGH LAST YEAR BRUNSWICK SAID THE PACT WITH
THE IRS WON'T HAVE ANY IMPACT ON ITS NET INCOME

THE IRS AGREED TO ALLOW DEDUCTIONS FOR THE ACQUIRED AMORTIZABLE INTANGIBLES
AND BRUNSWICK AGREED TO INCREASE THE AMORTIZABLE LIVES OF MOST OF THE
ASSETS 9401190066 940119 ABREAST OF THE MARKET RARE SESSION LEAVES
INDUSTRIALS TRANSPORTATION ISSUES UNCHANGED  BY DAVE PETTIT 
SPECIAL TO THE WALL STREET JOURNAL

NEW YORK IT WASN'T THE MOST EXCITING DAY BUT THE STOCK MARKET WASN'T
NEARLY AS DULL AS DEPICTED BY THE DOW JONES AVERAGES

IN A WALL STREET RARITY BOTH THE DOW JONES INDUSTRIAL AVERAGE AND THE DOW
JONES TRANSPORTATION AVERAGE CLOSED UNCHANGED THE INDUSTRIALS AT 387029
AND THE TRANSPORTATION INDEX AT 182258 IT WAS THE FIRST TIME SINCE JULY
27 1967 THAT THE INDUSTRIAL AND TRANSPORTATION AVERAGES FINISHED FLAT
ACCORDING TO NED DAVIS RESEARCH INC YESTERDAY'S DOUBLE UNCHANGED SESSION
WAS ONLY THE SECOND SINCE 1926 THE FIRST YEAR FOR WHICH NED DAVIS HAS DATA

ELSEWHERE MOST BROADBASED INDEXES MANAGED MODEST GAINS AND THE NASDAQ
COMPOSITE INDEX CREPT UP 084 OR 011 TO 79302 A NEW HIGH TOPPING A
RECORD THAT WAS SET FRIDAY ADVANCING STOCKS LED DECLINERS ABOUT 1210 TO
892 ON THE NEW YORK STOCK EXCHANGE

ANALYSTS TIED MUCH OF THE OPTIMISM TO RECENT ENCOURAGING EARNINGS REPORTS
AND TO THE MODEST STRENGTH IN BONDS THE TREASURY'S 30YEAR ISSUE ADDED 1/4
POINT PUSHING ITS YIELD DOWN TO 626 LOW INTEREST RATES HAVE BEEN ONE OF
THE MARKET'S MOST IMPORTANT PROPS

BIG BOARD VOLUME TOTALED 3086 MILLION SHARES COMPARED WITH 2264 MILLION
SHARES MONDAY

THE BIG BOARD COMPOSITE INDEX WAS 26276 UP 045 THE AVERAGE PRICE PER
SHARE ROSE SIX CENTS

MEANWHILE A SURPRISINGLY STRONG PROFIT READING FROM CHRYSLER AND A SERIES
OF SOLID REPORTS FROM SOME OF THE LARGEST US BANKING COMPANIES HELPED SET
THE POSITIVE TONE YESTERDAY THE MARKET WAS HIGHER MUCH OF THE DAY BUT
PRICES WERE LOCKED IN A NARROW RANGE

CHRYSLER POSTED EARNINGS OF 211 A SHARE FOR THE FOURTH QUARTER ANALYSTS
SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD FORECAST A PROFIT OF
JUST 160 A YEAR AGO CHRYSLER HAD NET INCOME OF 112

AMONG BANKS CITICORP EDGED UP 1/8 TO 41 1/4 WELLS FARGO SLIPPED 2 1/2 TO
133 5/8 CHASE MANHATTAN ADDED 1/4 TO 35 3/4 AND NATIONSBANK LOST 1/2 TO 49
1/4 EACH OF THOSE COMPANIES RELEASED IMPROVED EARNINGS

THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 016 OR 003 TO
48194

PARAMOUNT COMMUNICATIONS CLIMBED 1 1/4 TO 80 AFTER VIACOM SWEETENED ITS BID
FOR THE NEW YORK MEDIA COMPANY VIACOM'S NEW OFFER WAS VALUED AT ABOUT 97
BILLION

VIACOM'S CLASS B STOCK FELL 1 3/8 TO 37 3/4 ON THE AMEX RIVAL BIDDER QVC
NETWORK EASED 1/2 TO 43 ON THE NASDAQ STOCK MARKET ON THE BIG BOARD
BLOCKBUSTER ENTERTAINMENT SLIPPED 1/4 TO 27 7/8 THAT COMPANY HAS AGREED TO
MERGE WITH VIACOM

COTT FELL 2 1/8 TO 24 7/8 ON NASDAQ MABON SECURITIES ANALYST JENNIFER
SOLOMON CUT HER OPINION ON THE STOCK TO SELL FROM BUY SHE CUT HER
ESTIMATE OF THE COMPANY'S FOURTHQUARTER EARNINGS AND SAID SHE WAS
CONCERNED ABOUT INCREASED PRICE COMPETITION FROM OTHER CANADIAN BEVERAGE
COMPANIES

BMC SOFTWARE SLUMPED 2 3/8 TO 60 7/8 ON NASDAQ LATE MONDAY THE SUGAR LAND
TEXAS COMPANY SAID IT ACQUIRED PATROL SOFTWARE OF REDWOOD SHORES CALIF
AND ITS AUSTRALIAN AFFILIATE FOR 337 MILLION IN CASH

SANTA FE PACIFIC ADDED 1 1/8 TO 26 1/8 THE SCHAUMBURG ILL COMPANY'S
SANTA FE PACIFIC GOLD UNIT HAD 141 MILLION OUNCES OF PROVEN AND PROBABLE
GOLD RESERVES AT THE END OF LAST MONTH THAT IS UP 121 FROM THE LEVEL OF
SOCALLED CONTAINED OUNCES IT HAD AT THE END OF 1992

PENN CENTRAL SLUMPED 1 1/2 TO 31 1/2 SALOMON BROTHERS ANALYST MICHAEL
FRINQUELLI DOWNGRADED THE CINCINNATI COMPANY'S STOCK TO HOLD FROM BUY
CITING INCREASING COMPETITION IN THE AUTOMOBILE INSURANCE MARKET HE ALSO
DOWNGRADED HIS RATING ON HORACE MANN EDUCATORS SPRINGFIELD ILL THAT STOCK
EASED 1/4 TO 23 1/8

SARA LEE LOST 7/8 TO 23 3/8 ON HEAVY VOLUME OF TWO MILLION SHARES THE
COMPANY SAID IT REACQUIRED KIWI BRANDS A SHOECARE PRODUCTS COMPANY IN
SOUTH AFRICA THAT IT HAD SOLD IN 1986 BECAUSE OF ECONOMIC SANCTIONS AGAINST
THAT COUNTRY TERMS WEREN'T DISCLOSED SARA LEE IN CHICAGO SAID IT DIDN'T
KNOW OF ANY REASON FOR THE WEAKNESS IN ITS STOCK 9401190065 940119
INTERNATIONAL BRIEF PORSCHE AG COMPANY POSTS WIDER LOSS FOR YEAR
OMITS ITS DIVIDEND

PORSCHE AG POSTED A WIDER LOSS FOR ITS YEAR ENDED JULY 31 OMITTED ITS
DIVIDEND AND FORECAST MORE LOSSES FOR THE CURRENT FISCAL YEAR

FEELING THE DOWNTURN IN THE LUXURYCAR MARKET THE GERMAN AUTO MAKER SAID
ITS NET LOSS WIDENED TO 2388 MILLION MARKS 1365 MILLION FROM 658
MILLION MARKS A YEAR EARLIER

THE DIVIDEND ON COMMON SHARES HAD BEEN OMITTED THE PREVIOUS YEAR AS WELL
BUT FOR THE LATEST YEAR PORSCHE ALSO OMITTED THE PREFERRED DIVIDEND A YEAR
EARLIER IT HAD PAID OUT 250 MARKS A PREFERRED SHARE

FOR THE CURRENT FISCAL YEAR THE COMPANY EXPECTS LOSSES OF 140 MILLION MARKS
TO 150 MILLION MARKS

BUT PORSCHE YESTERDAY CLAIMED IT IS REBOUNDING FROM THE NEXT FISCAL YEAR
AT THE LATEST WE SHALL BE OUT OF THE RED AND SHALL AGAIN BE WRITING BLACK
FIGURES CHAIRMAN WENDELIN WIEDEKING SAID

A SURGE OF NEW ORDERS FOR PORSCHE'S REDESIGNED AND RELAUNCHED 911 CARERRA
MODEL WILL LEAD TO A BREAKEVEN OPERATING PROFIT IN THE FISCAL YEAR
BEGINNING IN AUGUST MR WIEDEKING SAID THE COMPANY WON'T RETURN TO HEALTHY
PROFIT MARGINS HOWEVER UNTIL 1997 WITH THE INTRODUCTION OF ITS NEW
BOXSTER TWOSEATER MODEL WHICH WILL GO INTO PRODUCTION IN 1996 HE ADDED
9401190064 940119 INTERNATIONAL BRIEF HONDA MOTOR CO PRODUCTION IN
CANADA US WILL INCREASE BY 184 IN '94

HONDA MOTOR CO OF JAPAN SAID IT PLANS TO INCREASE ITS PRODUCTION IN THE
US AND CANADA BY 184 THIS YEAR TO A RECORD 597000 VEHICLES

BRISK DEMAND IS EXPECTED IN THE US MARKET AND WE WILL PRODUCE CARS AT
PLACES WHERE WE CAN SELL A HONDA SPOKESMAN SAID

HONDA EXPECTS TO MARKET ABOUT 790000 CARS IN THE US THIS YEAR UP 103
FROM 1993 IT PLANS TO BUILD 494000 CARS MOSTLY ACCORD MODELS IN THE US
IN 1994 UP 223 FROM LAST YEAR AND 103000 CARS IN CANADA UP 24 

MEANWHILE HONDA'S DOMESTIC PRODUCTION WILL BE REDUCED BY 51 FROM A YEAR
EARLIER TO 109 MILLION CARS THIS YEAR THE SPOKESMAN SAID IN 1993 HONDA
SOLD 579127 CARS INCLUDING MINICARS IN JAPAN

HONDA HAS A MARKET SHARE OF 85 IN JAPAN MAKING IT FOURTH BEHIND TOYOTA
MOTOR CORP NISSAN MOTOR CO AND MITSUBISHI MOTORS CORP 9401190063
940119 INTERNATIONAL BRIEF ING C OLIVETTI & CO PACT REACHED WITH
UNIONS ON ELIMINATING 1932 JOBS

ING C OLIVETTI & CO MILAN REACHED AGREEMENT WITH EMPLOYEE GROUPS TO CUT
1932 JOBS IN AN EFFORT TO RESTRUCTURE THE FINANCIALLY AILING COMPANY

THE COMPUTER AND OFFICEEQUIPMENT MAKER'S AGREEMENT WITH LABOR UNIONS
INCLUDES PROVISIONS FOR REDUCED WORKING HOURS WAGE CUTS AND PROFESSIONAL
TRAINING MEASURES

OLIVETTI HAS BEEN MOVING AWAY FROM INCREASINGLY UNPROFITABLE ACTIVITIES SUCH
AS MAKING COMPUTERS TO MORE PROFITABLE BUSINESSES LIKE TELECOMMUNICATIONS
AN OLIVETTILED CONSORTIUM IS SEEN AS A LEADING CANDIDATE TO WIN A SECOND
ITALIAN LICENSE TO OPERATE A CELLULAR TELEPHONE NETWORK 9401190062 940119
RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

ALANTEC CORP AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA
HAMBRECHT & QUIST INC AND KIDDER PEABODY & CO

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

CORNING INC AN AMENDED OFFERING OF EIGHT MILLION COMMON SHARES AN
INCREASE FROM ITS PREVIOUS OFFERING OF 67 MILLION

FEDERALMOGUL CORP AN OFFERING OF 34 MILLION COMMON SHARES VIA CS FIRST
BOSTON AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP

NEUROBIOLOGICAL TECHNOLOGIES INC AN INITIAL OFFERING OF 15 MILLION COMMON
SHARES VIA VAN KASPER & CO

NORTHWEST AIRLINES CORP AN INITIAL OFFERING OF 20 MILLION CLASS A COMMON
SHARES VIA LEHMAN BROTHERS BT SECURITIES CORP CS FIRST BOSTON SALOMON
BROTHERS AND SMITH BARNEY SHEARSON INC 9401190061 940119 SMALL STOCK
FOCUS RUSSELL 2000 POSTS FIFTH STRAIGHT HIGH AS TRADERS RESPOND TO
EARNINGS NEWS  BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET
JOURNAL

NEW YORK EARNINGS NEWS TOOK THE SPOTLIGHT YESTERDAY AS INVESTORS BID UP
SMALLCOMPANY STOCK PRICES PUSHING TWO KEY INDEXES TO NEW HIGHS

THE RUSSELL 2000 INDEX GAINED 044 POINT OR 017 TO END AT 2624 SETTING
ITS FIFTH STRAIGHT CLOSING RECORD THE INDEX MEASURES THE PERFORMANCE OF
SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR
EXCHANGES

AFTER EARLY WEAKNESS THE NASDAQ COMPOSITE INDEX SET A NEW HIGH OF ITS OWN
AT 79302 GAINING 084 POINT OR 011 FROM MONDAY AND OUTPERFORMING
FRIDAY'S RECORD OF 79231 NASDAQ ADVANCERS TRAILED DECLINERS 1466 TO
1492

NASDAQ NATIONAL MARKET VOLUME WAS 2742 MILLION SHARES UP FROM MONDAY'S
2035 MILLION OVERALL VOLUME WAS 3194 MILLION SHARES UP FROM 2435
MILLION

IN EARNINGS NEWS BORDEN CHEMICALS & PLASTICS ROSE 1 5/8 TO 11 5/8 ON THE
NEW YORK STOCK EXCHANGE THE COLUMBUS OHIO COMPANY'S FOURTHQUARTER NET
INCOME WAS 12 CENTS A UNIT UP SHARPLY FROM A YEAREARLIER TWO CENTS A UNIT
ANALYSTS WERE LOOKING FOR EARNINGS OF ONE CENT A UNIT

SHARES OF TRANSTECHNOLOGY ROSE 7/8 OR 69 TO A NEW HIGH OF 13 5/8 IN BIG
BOARD TRADING BOOSTED BY THE COMPANY'S MONDAY REPORT OF THIRDQUARTER
PERSHARE EARNINGS FROM CONTINUING OPERATIONS OF 39 CENTS A SHARE IN THE
YEAREARLIER QUARTER THE UNION NJ DEVELOPER OF TECHNICAL PRODUCTS HAD A
PERSHARE NET FROM CONTINUING OPERATIONS OF 29 CENTS

TELXON ADVANCED 2 TO 12 1/4 AFTER REPORTING THAT ITS FISCAL THIRDQUARTER
LOSS NARROWED TO FOUR CENTS A SHARE FROM A YEAREARLIER 63 CENTS A SHARE
WALL STREET EXPECTED THE AKRON OHIO MICROPROCESSOR DESIGNER TO POST A
PERSHARE LOSS OF FIVE CENTS

FISCAL SECONDQUARTER NET INCOME OF 28 CENTS A SHARE UP FROM A YEAREARLIER
10 CENTS A SHARE SENT CANNON EXPRESS UP 2 TO 14 3/4 CANNON IS A
SPRINGDALE ARK TRUCKING CONCERN

GUPTA MENLO PARK CALIF CLIMBED 3 1/2 TO 24 1/8 AFTER MONDAY'S CLOSE
THE SOFTWARE COMPANY SAID FOURTHQUARTER PERSHARE EARNINGS WERE 23 CENTS
ABOVE LAST YEAR'S NINE CENTS AND ANALYSTS' EXPECTATIONS OF 20 CENTS

ALSO LATE MONDAY POWERSOFT BURLINGTON MASS REPORTED FOURTHQUARTER
OPERATING EARNINGS OF 25 CENTS A SHARE UP FROM A YEAREARLIER 19 CENTS A
SHARE THE NEWS AND A RATING UPGRADE YESTERDAY MORNING FROM PRUDENTIAL
SECURITIES LIFTED THE SOFTWARE DEVELOPER'S STOCK 4 TO 48

BUT JENNY CRAIG DEL MAR CALIF FELL 1 1/4 TO 7 1/2 AFTER SLIDING 1 5/8 ON
MONDAY BEFORE TRADING WAS HALTED AFTER MONDAY'S CLOSE OF MARKETS THE
PROVIDER OF WEIGHTLOSS SERVICES SAID IT EARNED FOUR CENTS A SHARE IN ITS
FISCAL SECOND QUARTER DOWN FROM THE YEAREARLIER PERIOD'S 25 CENTS A SHARE

INNOVEX SLIPPED 1 1/8 TO 10 1/2 AFTER REPORTING THAT FISCAL FIRSTQUARTER
EARNINGS FROM CONTINUING OPERATIONS FELL TO 13 CENTS A SHARE FROM A
YEAREARLIER 19 CENTS A SHARE THE HOPKINS MINN MAKER OF ELECTROMAGNETIC
PRODUCTS SAID SECONDQUARTER EARNINGS WILL LIKELY FALL BELOW LAST YEAR'S 23
CENTS A SHARE FOR THE PERIOD

MARKET WATCHERS SAID A CUT IN AN EARNINGS ESTIMATE FOR OSHKOSH B'GOSH BY A
CLEARY GULL REILAND & MCDEVITT ANALYST MAY HAVE PRESSURED THE STOCK CAUSING
A 2 3/8 SLIDE TO 16 1/4 A DAIN BOSWORTH TRADER SAID CLEARY GULL'S ESTIMATES
WERE HIGH COMPARED WITH OTHERS ON WALL STREET THE CLEARY GULL ANALYST WAS
UNAVAILABLE FOR COMMENT

CIRCA PHARMACEUTICALS CLIMBED 2 1/4 TO 12 7/8 ON THE AMERICAN STOCK
EXCHANGE BEAR STEARNS PUT AN INITIAL BUY RATING ON THE COPIAGUE NY
COMPANY AND SET A 12MONTH TO 18MONTH PRICE TARGET OF 20

AMONG NEW ISSUES PEOPLES BANCORP OF INDIANAPOLIS ROSE TO 26 7/8 FROM
YESTERDAY MORNING'S OFFERING PRICE OF 25 1/2 THE HOLDING COMPANY FOR
PEOPLES BANK & TRUST SAID PROCEEDS ARE EXPECTED TO BE USED FOR GENERAL
CORPORATE PURPOSES

IN OTHER ACTION MARK CONTROLS SKOKIE ILL JUMPED 2 5/8 TO 13 7/8
FOLLOWING NEWS THAT BIG BOARDTRADED CRANE PLANS TO ACQUIRE IT FOR 13 A
SHARE CRANE OWNS 13 OF MARK A MAKER OF VALVES AND OTHER INDUSTRIAL AND
COMMERCIAL PRODUCTS

AN INITIAL BUY RATING FROM OPPENHEIMER PUSHED SAFECARD SERVICES CHEYENNE
WYO UP 1 7/8 TO 20 1/8 ON THE BIG BOARD NED DAVIS A SENIOR VICE
PRESIDENT AT THE BROKERAGE FIRM SAID HE BELIEVES PAUL G KAHN'S APPOINTMENT
DEC 7 AS SAFECARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL STRENGTHEN
THE COMPANY'S MANAGEMENT

NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE
TOTALED 127 WHILE 22 HIT NEW LOWS 9401190060 940119 INTERNATIONAL BRIEF
 SOCIETE NATIONALE ELF AQUITAINE ESTIMATED 1993 NET INCOME PLUNGED
AMID PRIVATIZATION

SOCIETE NATIONALE ELF AQUITAINE THE FRENCH OIL COMPANY PREPARING FOR
PRIVATIZATION REPORTED THAT ESTIMATED NET INCOME PLUNGED IN 1993 TO 11
BILLION FRENCH FRANCS 1852 MILLION FROM 62 BILLION FRANCS A YEAR
EARLIER

SALES EDGED UP TO 210 BILLION FRANCS FROM 2006 BILLION FRANCS

ANALYSTS WEREN'T SURPRISED ELF CHAIRMAN PHILIPPE JAFFRE HAD PREPARED THEM
LAST NOVEMBER WHEN THE COMPANY HAD DISCLOSED THAT 1993 NET INCOME WOULDN'T
BE MUCH OVER ONE BILLION FRANCS AND SOME SAID THE RESULTS WERE A SHADE
BETTER THAN THEY HAD EXPECTED

THE ELF CHAIRMAN EARLIER HAD INDICATED THAT NONRECURRING CHARGES FOR 1993
WOULD AMOUNT TO ABOUT 22 BILLION FRANCS YESTERDAY ELF SAID THESE CHARGES
TOTALED TWO BILLION FRANCS

MR JAFFRE HAS SCHEDULED A NEWS CONFERENCE FOR TOMORROW AND ANALYSTS SAID
INVESTOR MEETINGS HAVE BEEN CALLED FOR NEXT WEEK SUGGESTING THAT DETAILS OF
THE GOVERNMENT'S PLANNED SALE OF MUCH OF ITS 51 INTEREST IN ELF MAY BE
ANNOUNCED 9401190059 940119 MACY'S DEBTOR PARADISE  BY MARK
DICKSTEIN

THE RECENT PURCHASE OF ALMOST 450 MILLION OF RH MACY & CO'S DEBT BY
RIVAL FEDERATED DEPARTMENT STORES HAS SET OFF SPECULATION ABOUT A MERGER
WHEN MACY'S EMERGES FROM BANKRUPTCY MACY'S CHAIRMAN MYRON ULLMAN HAS
ALREADY SAID THAT HE IS NOT INTERESTED IN A MERGER WITH FEDERATED OR
PRESUMABLY WITH ANYONE ELSE IN THE MEANTIME AFTER TWO YEARS OF BANKRUPTCY
MACY'S HAS YET TO PROPOSE ANY PLAN FOR REORGANIZATION

THIS SITUATION BRINGS TO THE FOREFRONT THE BIGGEST FLAW IN OUR BANKRUPTCY
SYSTEM MANY COURTS ARE ALL TOO WILLING TO GIVE THE BANKRUPT COMPANY THE
ABILITY TO MONOPOLIZE THE RIGHT TO PROPOSE A PLAN OF REORGANIZATION SO LONG
AS THE COMPANY HAS THIS MONOPOLY NO ONE EXCEPT THE DEBTOR NO CREDITOR
SHAREHOLDER OR ANYONE ELSE CAN PROPOSE A PLAN AND GET THE COMPANY OUT OF
CHAPTER 11

ALTHOUGH THE BANKRUPTCY CODE GIVES THE COMPANY THIS REORGANIZATION MONOPOLY
FOR ONLY 120 DAYS THE BANKRUPTCY COURT HAS THE ABILITY TO EXTEND THIS
EXCLUSIVE PERIOD OR EXCLUSIVITY INDEFINITELY SUCH EXTENSIONS HAVE
BEEN ROUTINELY GRANTED TO MACY'S

PERPETUAL EXTENSIONS OF EXCLUSIVITY MAKE SENSE PRIMARILY IN THOSE HIGHLY
UNUSUAL SITUATIONS WHERE THE DEBTOR IS ENMESHED IN LITIGATION THAT REQUIRES
RESOLUTION BEFORE THE DEBTOR CAN BEGIN TO REORGANIZE ITS AFFAIRS IN RECENT
YEARS TWO COMPANIES INVOLVED IN THIS TYPE OF CASE WERE MANVILLE CORP
WHICH FACED BILLIONS OF DOLLARS IN JUDGMENTS FROM PARTIES HARMED BY
ASBESTOS AND LTV WHICH FACED A MULTIBILLIONDOLLAR PENSION BENEFIT
GUARANTY CORP CLAIM IN BOTH MANVILLE AND LTV MOST OBSERVERS RECOGNIZED
THAT NO PLAN OF REORGANIZATION COULD BE CONFIRMED WITHOUT THE SUPPORT OF THE
LITIGANTS SO PERPETUAL EXTENSIONS OF EXCLUSIVITY MADE SENSE

BY FAR THE MORE COMMON OCCURRENCE IS A SITUATION LIKE MACY'S MACY'S IS
TYPICAL OF MOST RECENT BANKRUPTCIES IN THAT ALTHOUGH IT MAY HAVE BEEN
UNDERPERFORMING ITS COMPETITORS THE PRIMARY CAUSE OF ITS FILING FOR
BANKRUPTCY WAS THAT IT SIMPLY HAD TOO MUCH DEBT RELATIVE TO ITS ABILITY TO
SERVICE ITS DEBT

THE ARGUMENT MADE BY THIS KIND OF DEBTOR FOR EXTENSIONS OF EXCLUSIVITY IS
FAMILIAR DUE TO THE COMPLEXITY OF ITS CASE THE NEED TO COMPLETE AN
OPERATIONAL TURNAROUND BEFORE EMERGING FROM BANKRUPTCY AND THE CHAOS THAT
WOULD RESULT FROM LETTING ANYONE FILE A PLAN IT IS SUPPOSEDLY IN THE BEST
INTERESTS OF THE ESTATE TO LET THE DEBTOR MONOPOLIZE THE REORGANIZATION
PROCESS

MACY'S HAS THUS PURSUED THE TYPICAL DEBTOR STRATEGY OF PRESERVING
EXCLUSIVITY AS LONG AS POSSIBLE BUT IT HAS ALSO SHOWN NO URGENT DESIRE TO
EXIT BANKRUPTCY AND THAT IS UNUSUAL IN FAILING TO COME FORTH WITH A PLAN
MACY'S MUST HAVE BELIEVED THAT IT COULD NOT OPERATE OUT OF BANKRUPTCY IN
1993 OR 1994 EVEN IF ALL ITS PREBANKRUPTCY DEBTS WERE CONVERTED TO EQUITY

IT IS ILLUSTRATIVE TO COMPARE THE MACY BANKRUPTCY TO THE RECENT BANKRUPTCY
OF ZALE CORP THE NATION'S LARGEST JEWELRY RETAILER THE ZALE BANKRUPTCY
INVOLVED AS COMPLEX A SET OF LEGAL AND VALUATION ISSUES AS HAVE BEEN FACED
IN ANY OTHER MAJOR BANKRUPTCY IN RECENT YEARS IN ADDITION ZALE HAD NO
CHIEF EXECUTIVE AND FACED VIRTUALLY A COMPLETE OPERATIONAL MAKEOVER

NOTWITHSTANDING THESE FACTS THE ZALE BANKRUPTCY COURT SET UP A RIGOROUS
TIMETABLE WITH THE AIM OF SEEING THAT THE BANKRUPTCY LASTED LESS THAN 18
MONTHS IN ADDITION THE ZALE BANKRUPTCY COURT IGNORED THE DEBTOR'S DESIRE
TO KEEP EXCLUSIVITY IN FACT THE COURT MADE REFERENCE TO THE UNEVEN PLAYING
FIELD THAT WOULD RESULT IF ONLY THE COMPANY ITSELF COULD CONTINUE TO FILE A
REORGANIZATION PLAN

ZALE'S BANKRUPTCY COUNSEL WEIL GOTSHAL & MANGES WHICH IS ALSO MACY'S
COUNSEL MADE THE PREDICTABLE ARGUMENT THAT CHAOS WOULD ENSUE IF ANY
INTERESTED PARTY COULD FILE A PLAN FOR ZALE WELL CHAOS OF A SORT DID IN
FACT ENSUE BUT IT LED TO ZALE CONFIRMING A PLAN OF REORGANIZATION WITHIN 18
MONTHS OF ENTERING BANKRUPTCY

ONE REASON THE MACY BANKRUPTCY HAS NOT BEEN HANDLED THIS WAY IS THAT IT IS
BEING HEARD IN THE SOUTHERN DISTRICT OF NEW YORK A LOCATION THAT HAS
SOMETIMES BEEN REFERRED TO AS DEBTOR'S PARADISE THE COURTS THERE ALWAYS
SEEM TO PRESUME THAT THE DEBTOR IS INNOCENT UNTIL PROVEN GUILTY AN
ADMIRABLE STANDARD IN CRIMINAL LAW BUT NOT IN BANKRUPTCY MATTERS THE
SOUTHERN DISTRICT'S COURTS SEEM TO AGREE WITH VIRTUALLY EVERY ARGUMENT A
DEBTOR MAKES SO LONG AS IT SOUNDS REASONABLE

SOME OBSERVERS BELIEVE THAT IF MACY'S HAD PROMPTLY COME UP WITH A
REORGANIZATION PLAN THAT AMONG OTHER THINGS CONVERTED ALL ITS
PREBANKRUPTCY DEBT TO EQUITY IT MIGHT HAVE OBTAINED POSTBANKRUPTCY
FINANCING THAT WOULD HAVE ENABLED IT TO EMERGE FROM BANKRUPTCY IN JANUARY
1993 EVEN IF THAT DATE WAS OVERLY OPTIMISTIC JANUARY 1994 WAS CERTAINLY
POSSIBLE

BUT FOR REASONS THAT ARE DIFFICULT TO COMPREHEND MACY'S HAS DELAYED THERE
IS NO NEED FOR AN OPERATIONAL MAKEOVER TO OCCUR ONLY WHILE A COMPANY IS IN
CHAPTER 11 AND IF AN EQUITY INFUSION WAS NEEDED TO HELP MACY'S MAKE AN
EARLY EXIT FROM CHAPTER 11 IT APPEARS THAT FIDELITY INVESTMENTS AND PERHAPS
OTHERS WOULD HAVE BEEN WILLING TO BUY UP DEBT IN EXCHANGE FOR EQUITY IN
1993 THE MILWAUKEEBASED PA BERGNER DEPARTMENT STORE CHAIN EMERGED FROM
BANKRUPTCY THANKS IN PART TO AN EQUITY INFUSION FROM A GROUP OF DEBTHOLDERS
FOLLOWING A REORGANIZATION PLAN IT WOULD NOT HAVE BEEN UNREASONABLE TO
EXPECT A SIMILAR SOLUTION IN THE CASE OF MACY'S

INSTEAD FOR THE PAST TWO YEARS MACY'S HAS FAILED TO COME UP WITH ANY PLAN
OF REORGANIZATION AND IT HAS PETITIONED THE COURT TO PREVENT ANY OTHER
INTERESTED PARTY FROM FILING ONE OF ITS OWN TO DATE THE COURT HAS
ACQUIESCED

NOW MACY'S IS REAPING THE BITTER HARVEST IT HAS SOWN WHEN MAJOR CREDITORS
SUCH AS PRUDENTIAL AND FIDELITY SEE MACY'S MAKING NO PROGRESS TOWARD EXITING
BANKRUPTCY AND WHEN THE COURT DENIES THESE CREDITORS THE RIGHT TO FILE
THEIR OWN PLANS OF REORGANIZATION IT SHOULD COME AS NO SURPRISE THAT THEY
BEGIN TO LOOK TO MACY'S COMPETITORS TO HELP SPEED UP THE PROCESS

CONGRESS HAS NOT TOTALLY IGNORED WHAT IS HAPPENING IN DEBTOR'S PARADISE THE
PROPOSED BANKRUPTCY REFORM BILL NOW IN CONGRESS WOULD DIRECT THE COURTS NOT
TO EXTEND EXCLUSIVITY BEYOND A YEAR UNLESS THE NEED FOR AN EXTENSION IS
ATTRIBUTABLE TO CIRCUMSTANCES FOR WHICH THE DEBTOR SHOULD NOT JUSTLY BE HELD
ACCOUNTABLE THEORETICALLY THAT PROVISION WOULD HELP BUT MANY OBSERVERS
FEAR THAT GIVEN THE PRODEBTOR BIAS OF MANY BANKRUPTCY COURTS FINDING THE
CIRCUMSTANCES TO JUSTIFY AN EXTENSION OF EXCLUSIVITY WILL BECOME ROUTINE

DURING AN EXCLUSIVITY HEARING IN THE ZALE BANKRUPTCY ONE ATTORNEY MADE THE
FOLLOWING STATEMENT WITH APOLOGIES TO SPIKE LEE MO' PLANS MO' BETTER
IN THE ZALE BANKRUPTCY AT LEAST THE COURT AGREED WITH GOOD RESULTS IN THE
CASE OF MACY'S HOWEVER AN END TO EXCLUSIVITY IS NOWHERE IN SIGHT

MR DICKSTEIN WAS A PARTICIPANT IN THE ZALE BANKRUPTCY AND IS CHAIRMAN OF
CARSON PIRIE SCOTT THE SUCCESSOR CORPORATION TO PA BERGNER SEE RELATED
ARTICLE AND AN ALTERNATIVE TO CHAPTER 11 WSJ JAN 19 1994
9401190058 940119 SOUTHERN CALIFORNIA EARTHQUAKE DAMAGE ASSESSMENTS
RISE SHARPLY AS QUAKE DEATH TOLL REACHES 34  BY RHONDA L RUNDLE
AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL

LOS ANGELES DAMAGE ASSESSMENTS SURGED FROM THE CENTURY'S WORST EARTHQUAKE
HERE AS EMERGENCY TEAMS STUDIED THE WEAKENED STATE OF HIGHWAYS BUILDINGS
AND OTHER STRUCTURES THAT SURVIVED MONDAY MORNING'S INITIAL JOLT

THE HUMAN TOLL ALSO CREPT UP TO 34 DEAD AFTER RESCUE WORKERS FINISHED
COMBING ONE PARTICULARLY DEVASTATED APARTMENT BUILDING NEAR THE SUBURBAN
NORTHRIDGE EPICENTER MORE THAN 2600 WERE INJURED THE QUAKE WHICH
MEASURED 66 ON THE RICHTER SCALE WREAKED HAVOC AT HUNDREDS OF BUSINESSES
AND THOUSANDS OF APARTMENTS AND HOMES ACROSS A WIDE AREA OF THE NATION'S
SECONDMOSTPOPULOUS CITY

THOUGH GOVERNMENT AGENCIES AND INSURANCE AUTHORITIES SAID IT WAS STILL TOO
EARLY FOR MEANINGFUL LOSS ESTIMATES ESPECIALLY WITH POTENTIALLY DAMAGING
AFTERSHOCKS CONTINUING IN THE AREA SOME EARLY ESTIMATES BY INSURANCE
EXPERTS SHARPLY ESCALATED FROM THE ABOUT 1 BILLION SUGGESTED ON THE DAY OF
THE DISASTER

INSURANCE COMPANIES WILL PAY BETWEEN 15 BILLION AND 2 BILLION IN CLAIMS
ON THE EARTHQUAKE KIDDER PEABODY & CO STOCK ANALYST STEVEN GAVIOS SAID
AND THE TOTAL ECONOMIC LOSS MIGHT BE PERHAPS 10 TIMES THE AMOUNT OF CLAIMS
THE FIGURES HE SAID REFLECT STUDIES BY PRIVATE CONSULTING FIRMS THAT USE
COMPUTER MODELS TO MAKE THEIR ESTIMATES CLAIMS AFTER THE 1989 SAN FRANCISCO
QUAKE WERE ABOUT 960 MILLION AND TOTAL DAMAGE THERE WAS ABOUT 7 BILLION

THERE ARE A SIGNIFICANT NUMBER OF STRUCTURES THAT HAVE SUFFERED SERIOUS
DAMAGE SAID DICK ANDREWS DIRECTOR OF GOV PETE WILSON'S OFFICE OF
EMERGENCY SERVICES BUT WE DON'T KNOW YET WHETHER THAT MEANS THEY CAN BE
REPAIRED WITH SOME TIME OR WHETHER THEY ARE A TOTAL LOSS

WHILE THE WORST DEVASTATION WAS TO SHOPPING CENTERS COMMERCIAL BUILDINGS
AND APARTMENTS CONCENTRATED WITHIN A FEW MILES OF NORTHRIDGE A SAN FERNANDO
VALLEY COMMUNITY ABOUT 30 MILES NORTHWEST OF DOWNTOWN SEVERE DAMAGE
EXTENDED INTO SANTA MONICA HOLLYWOOD AND THE EASTERN AND WESTERN EDGES OF
THE VALLEY IN THE VALLEY AND ITS OUTER REACHES REGIONAL POWER SWITCHING
STATIONS WATER PUMPING STATIONS AND OTHER IMPORTANT STRUCTURES WERE KNOCKED
OUT

THOUSANDS OF VALLEY APARTMENTDWELLERS FEARED REENTERING THEIR BUILDINGS
WORRIED THAT A SEEMINGLY RELENTLESS SUCCESSION OF AFTERSHOCKS WOULD SEND
WEAKENED CONCRETE CRASHING DOWN ON THEM ABOUT 3000 PEOPLE SPENT MONDAY
NIGHT IN 22 RED CROSS SHELTERS WITH THOUSANDS MORE CAMPED OUTSIDE AND IN
CITY PARKS LOCAL AUTHORITIES SAID THEY DIDN'T KNOW HOW LONG IT WOULD TAKE
BUILDING INSPECTORS TO DETERMINE THE HABITABILITY OF DAMAGED RESIDENTIAL
BUILDINGS

MANY OF THESE PEOPLE ARE STAYING IN OUR SHELTERS BECAUSE THEIR BUILDINGS
ARE CRACKED AND THEY ARE WAITING FOR AN OFFICIAL TO DETERMINE WHETHER IT
WILL BE SAFE TO GO BACK IN SAID CAROL MILLER A SPOKESWOMAN FOR THE
AMERICAN RED CROSS SHE COULDN'T PREDICT HOW MANY WOULD BE BACK LAST NIGHT
WATER AND POWER WERE BEING RESTORED TO MOST PARTS OF THE CITY AS THE DAY
PASSED

MOST LARGE BUSINESSES AND SCHOOLS HEEDED MAYOR RICHARD RIORDAN'S REQUEST
THAT THEY STAY CLOSED YESTERDAY WHICH TOOK PRESSURE OFF CRIPPLED FREEWAYS
AND CITY SERVICES IT WASN'T CLEAR HOW SOON A SENSE OF NORMALCY WOULD
RETURN CITY OFFICIALS EXTENDED THE DUSKTODAWN CURFEW AT LEAST THROUGH
LAST NIGHT

SCATTERED INSTANCES OF LOOTING RESULTED IN 73 ARRESTS DURING A MONDAY NIGHT
CHARACTERIZED BY A POLICE SPOKESMAN AS RELATIVELY UNEVENTFUL MORE THAN
2000 NATIONAL GUARD SOLDIERS PATROLLED THE STREETS YESTERDAY

AT LOS ANGELES COUNTY'S EMERGENCY OPERATIONS CENTER SQUADS OF ENGINEERS AND
OTHER STAFFERS WERE DEPLOYED TO INSPECT HUNDREDS OF STRUCTURES REDTAGGING
THOSE THAT ARE UNSAFE TO ENTER SO FAR OFFICIALS HAVE IDENTIFIED 40 COUNTY
FACILITIES SUSTAINING SOME STRUCTURAL DAMAGE ALTHOUGH THE ASSESSMENT IS FAR
FROM COMPLETE SAID BOB GARROTT ASSISTANT MANAGER OF THE OFFICE OF
EMERGENCY MANAGEMENT

THE GIANT LOS ANGELES UNIFIED SCHOOL DISTRICT SAID THAT AT LEAST 100 OF ITS
650 SCHOOLS SUSTAINED SIGNIFICANT STRUCTURAL DAMAGE SOME FACILITIES MAY
BE A TOTAL LOSS AND REPAIRS ARE EXPECTED TO COST HUNDREDS OF MILLIONS OF
DOLLARS A SPOKESMAN SAID DAMAGE TO A STATE COURTHOUSE IN VAN NUYS FORCED
SUSPENSION OF DELIBERATIONS IN LYLE MENENDEZ'S HIGHLY PUBLICIZED MURDER
TRIAL THERE

ATLANTIC RICHFIELD CO THE BIG LOS ANGELES OIL COMPANY SAID 20 OF ITS 27
SERVICE STATIONS LOCATED WITHIN A 10MILE RADIUS OF THE EPICENTER SUSTAINED
SOME DAMAGE THE OIL COMPANY ALSO SAID TWO PIPELINES WERE AFFECTED WHILE
OTHERS WERE TEMPORARILY SHUT DOWN AS A PRECAUTION AT ONE LOCATION ABOUT
3500 BARRELS OF CRUDE OIL LEAKED FROM A PIPELINE A CLEANUP EFFORT IS UNDER
WAY SAID AL GREENSTEIN AN ARCO SPOKESMAN BUT NO COST ESTIMATES WERE
IMMEDIATELY AVAILABLE

MANY OTHER BUSINESSES AND GOVERNMENT AGENCIES REPORTED PROBLEMS KENFIL
INC A VAN NUYS SOFTWARE CONCERN SAID IT SUSTAINED MAJOR DAMAGE TO ITS
LOCAL WAREHOUSES NEWHALL LAND & FARMING CO SAID A FOURSTORY OFFICE
BUILDING IN NEARBY VALENCIA WAS HEAVILY DAMAGED ROYCE HALL A CONCERT HALL
AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES WAS ALSO HIT NEARLY TWO DOZEN
POST OFFICES MOSTLY IN THE SAN FERNANDO VALLEY WERE CLOSED FOR REPAIRS

OPERATIONS OF THE LOS ANGELES DEPARTMENT OF WATER AND POWER WHICH PROVIDES
MUCH OF THE REGION'S WATER AND ELECTRICAL SERVICE WERE HIT ESPECIALLY HARD
AS MANY AS 82000 ELECTRIC AND 40000 WATER CUSTOMERS OF DWP REMAINED
WITHOUT SERVICE YESTERDAY AND TROUBLE RANGED FROM SCATTERED WATERMAIN
BREAKS TO RUPTURES IN OTHER MAJOR CITY WATER LINES AND DAMAGE TO TWO
AQUEDUCTS IN THE SAN GABRIEL MOUNTAINS

WE JUST HAVEN'T HAD TIME TO ASSESS THE DOLLAR AMOUNT OF THE DAMAGE BECAUSE
WE'RE FOCUSING ON RESTORING SERVICE SAID SPOKESWOMAN LUCIA ALVELAIS
ADDING THAT REPAIRWORK COSTS WOULD CLEARLY RUN HIGH INTO THE MILLIONS

UTILITIES SAID THAT EVEN AFTER SERVICE IS RESTORED MAJOR REPAIRS WILL BE
NEEDED THROUGH THEIR SYSTEMS SCECORP'S SOUTHERN CALIFORNIA EDISON ELECTRIC
UTILITY FOR INSTANCE SAID A MAJOR SWITCHING STATION AT THE VALLEY'S NORTH
END SUSTAINED CONSIDERABLE DAMAGE WE EXPECT OUR EXPENSES TO BE LESS THAN
100 MILLION BUT IT REALLY WILL BE SOME TIME BEFORE WE KNOW SAID KEVIN
KELLEY AN EDISON SPOKESMAN

BETWEEN 30 AND 35 OF CALIFORNIA HOMEOWNERS CARRY EARTHQUAKE INSURANCE AN
INSURANCEINDUSTRY SPOKESWOMAN SAID SHE ESTIMATED THAT IT WOULD TAKE AT
LEAST A WEEK TO GATHER ESTIMATES ON THE TOTAL INSURED RESIDENTIAL AND
COMMERCIAL LOSS ADDING THAT MOST CARRIERS WILL SUSPEND WRITING NEW
EARTHQUAKE POLICIES UNTIL DAMAGE FROM MONDAY'S QUAKE AND AFTERSHOCKS IS
TALLIED

GREG STEINMETZ IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401190056 940119
INSIDE TRACK GOLD'S ADVANCE TOWARD 400 SPURS INSIDER SELLING AT 2
FIRMS  BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL

AS GOLD STRUGGLES TOWARD 400 AN OUNCE CARRYING GOLDSHARE PRICES HIGHER
INSIDERS AT TWO BIG US GOLDMINING COMPANIES ARE BOWING TO TEMPTATION AND
TAKING PROFITS

AT DENVERBASED ECHO BAY MINES INSIDERS SOLD MORE STOCK IN THE FOURTH
QUARTER THAN IN ANY ENTIRE PRIOR YEAR RECENT SECURITIES AND EXCHANGE
COMMISSION FILINGS SHOW THAT 11 INSIDERS INCLUDING THE CHAIRMAN JETTISONED
AROUND 400000 SHARES AT AN AVERAGE PRICE OF 1250 EACH IN THE
OCTOBERDECEMBER PERIOD

AND AT HOMESTAKE MINING OF SAN FRANCISCO THE LEVEL OF INSIDER SELLING IS
ALSO AT RECORD LEVELS WITH MORE THAN 500000 SHARES BEING DUMPED IN THE
19TO23 RANGE BETWEEN NOV 1 AND DEC 27 SEC DATA INDICATE

IN NEARLY ALL THE MOST RECENT INSTANCES OF INSIDER SELLING THE SHARES SOLD
WERE FIRST ACQUIRED THROUGH THE EXERCISE OF OPTIONS OPTIONRELATED SELLING
IS GENERALLY VIEWED AS A LESS SIGNIFICANT INDICATOR OF INSIDER SENTIMENT
THAN THE SALE OF LONGTERM HOLDINGS THAT'S BECAUSE OPTIONS ARE OFTEN A
LARGE PART OF EXECUTIVECOMPENSATION PACKAGES BUT ANALYSTS WHO FOLLOW
INSIDER TRADING ARGUE NEVERTHELESS THAT RECORD OPTIONRELATED SALES BY
INSIDERS SHOULDN'T BE IGNORED

THE TOP EXECUTIVE AT HOMESTAKE BEGS TO DIFFER THE SALES AT HOMESTAKE WERE
OPTIONRELATED AND DON'T EXPRESS ANY LACK OF FAITH IN THE COMPANY'S
PROSPECTS SAYS HARRY CONGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER

AFTER MORE THAN A DECADE OF WEAK BULLION AND GOLDEQUITY PRICES THESE
INDUSTRY INSIDERS APPEAR TO BE HEDGING THEIR BETS THAT THE 10MONTHOLD GOLD
RALLY FUELED IN PART BY CONCERNS OVER INFLATION WILL BE LONGLIVED
GOLD FOR FEBRUARY DELIVERY CLOSED YESTERDAY AT 39360 UP 140 ON NEW
YORK'S COMMODITY EXCHANGE

WHILE MANY GOLD ANALYSTS THINK BULLION CAN CLIMB INTO THE LOW 400S THIS
YEAR ON SUPPLYANDDEMAND FUNDAMENTALS ALONE THERE'S CONSIDERABLE DOUBT
WHETHER GOLD CAN BREACH STIFF RESISTANCE AT 420 AND ABOVE PARTICULARLY
WHEN OIL PRICES A MAJOR INFLUENCE ON INFLATION HAVE SAGGED TO LOWS BELOW
14 A BARREL

YET RATHER THAN CONCEDE ANY HEIGHTENED LEVEL OF UNCERTAINTY ABOUT GOLD'S
FUTURE COURSE INSIDERS AT GOLDMINING COMPANIES ARGUE THAT GOLDEQUITY
PROFITS IN THE HAND ARE BETTER THAN POTENTIAL GAINS

WE EXPECT OUR EXECUTIVES TO TAKE PROFITS PERIODICALLY SAYS ECHO BAY'S
CHAIRMAN AND CEO ROBERT CALMAN WHO SOLD 65000 SHARES IN DECEMBER AFTER
THE EXERCISE OF OPTIONS PRICED AT 575 A SHARE WE TELL OUR PEOPLE WHEN
YOU GET A CHANCE TO MAKE SOME MONEY ON YOUR OPTION SHARES DO IT AND PUT
THE PROFIT AWAY FOR OLD AGE

LAST YEAR HE ADDS WAS A GOOD YEAR FOR GOLD PRICES AND A GOOD YEAR FOR
OUR STOCK OUR SHARES WERE UP 160 IN 1993 ECHO BAY'S SHARES BEGAN 1993
AT 4938 AND CLOSED AT 12875 YESTERDAY THE STOCK ROSE 125 CENTS TO
CLOSE AT 15 A 52WEEK HIGH IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING
THE STOCK RANKED AS THE MOST ACTIVE ISSUE ON THE AMEX IN 1993

NOT SURPRISINGLY MR CALMAN SAYS ECHO BAY SHARE PRICES TRACK GOLD PRICES
CLOSELY OUR SHARES ARE DOING WELL BECAUSE GOLD IS DOING WELL HE SAYS
WE DID A STUDY THAT SHOWED THERE'S BEEN AN 80 CORRELATION OVER THE PAST
DECADE BETWEEN ECHO BAY'S SHARE PRICE AND THE PRICE OF GOLD

IT HELPS OF COURSE TO HAVE GREATLY REDUCED THE COMPANY'S DEBTSERVICING
COSTS AND TO HAVE SIGNIFICANTLY CUT THE CASHBASED COST OF PRODUCTION TO
AROUND 215 AN OUNCE FROM AN AVERAGE OF 240 IN 1992 HE ADDS

BUT ANALYSTS NOTE THAT ECHO BAY COULD MISS OUT ON ANY MAJOR GOLDPRICE RALLY
THIS YEAR AND IN 1995 BECAUSE IT WON'T HAVE FULL ACCESS TO IMPORTANT
RESERVES IN ALASKA FOR SEVERAL YEARS A LENGTHY CONSTRUCTION SCHEDULE AND A
COMPLEX PERMITTING PROCESS STAND IN THE WAY OF ALASKAN PRODUCTION BEFORE
1997 AT THE EARLIEST THE PROVEN AND PROBABLE RESERVES AT ECHO BAY'S TWO
SITES IN ALASKA ARE PUT BY THE COMPANY AT 44 MILLION OUNCES

BECAUSE ECHO BAY'S PRODUCTION PROFILE IS STABLE FOR THE NEXT SEVERAL YEARS
THEY WON'T BENEFIT AS MUCH FROM A RISING GOLD PRICE AS WOULD A COMPANY WITH
A MORE AGGRESSIVE PRODUCTION CAMPAIGN SAYS LEANNE BAKER A PRECIOUSMETALS
INDUSTRY ANALYST WITH SALOMON BROTHERS SHE IS MAINTAINING A HOLD RATING
ON THE STOCK WITH A TARGET PRICE FOR 1994 OF 1650 A SHARE ASSUMING A
400 GOLDPRICE AVERAGE ON THE YEAR AND A TARGET OF 2050 FOR 1995
ASSUMING A 425 AVERAGE PRICE OF BULLION THAT YEAR SHE EXPECTS ECHO BAY TO
EARN AN OPERATING PROFIT OF 11 CENTS A SHARE IN 1994 AFTER WHAT SHE EXPECTS
TO BE AN OPERATING LOSS OF ABOUT THREE CENTS A SHARE FOR ALL OF 1993

OTHER ANALYSTS ARE LESS ENTHUSIASTIC MARC COHEN AN INDUSTRY ANALYST AT
KIDDER PEABODY RATES THE STOCK AN UNDERPERFORMER OR MORE BLUNTLY A
SELL

I'M NOT EVEN SURE IF THE COMPANY'S CURRENT VALUATION WOULD BE WARRANTED IF
THEY HAD A SPECTACULAR EXPLORATION PROGRAM BUT THEY DON'T HE SAYS ON
TOP OF THAT THEY'RE A HIGHCOST PRODUCER YET PEOPLE DO WANT TO OWN THIS
STOCK IT MYSTIFIES ME

MR CALMAN COUNTERS THAT THE DELAY IN TAPPING THE ALASKAN RESERVES IS
MITIGATED BY THE COMPANY'S ABILITY TO SELL FORWARD UP TO A MILLION OUNCES OF
UNMINED GOLD FROM THOSE ALASKAN RESERVES BEFORE PRODUCTION BEGINS LAST
YEAR HE SAID THE COMPANY SOLD 300000 OUNCES FORWARD FROM THOSE MINES

LAST YEAR ECHO BAY PRODUCED AN ESTIMATED 874000 OUNCES OF GOLD UP FROM
764200 OUNCES IN 1992 ACCORDING TO THE COMPANY'S PRELIMINARY FIGURES

HOMESTAKE SHARES DOUBLED TO 22 LAST YEAR AND THE STOCK RATES A HOLD FROM
MS BAKER SHE SAYS MOST OF THE GOOD NEWS IS ALREADY REFLECTED IN THE
COMPANY'S SHARE PRICE THE STOCK CLOSED YESTERDAY AT 24125 OFF 75 CENTS
AND SHY OF ITS 52WEEK HIGH OF 24875 IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING

THEY'VE MADE TREMENDOUS STRIDES IN IMPROVING THE PROFITABILITY OF THEIR
FLAGSHIP HOMESTAKE MINE IN SOUTH DAKOTA BUT THERE ARE SIMPLY SOME BETTER
VALUES TO BE FOUND WITHIN THE GROUP OF LARGECAPITALIZATION GOLD PRODUCERS
SHE SAYS

MR COHEN THE KIDDER ANALYST RATES HOMESTAKE AN OUTPERFORMER OR A NOTCH
BELOW A BUY THE STOCK HAS HIT HIS NEARTERM PRICE TARGET OF 2324 BUT
THE COMPANY'S ANNOUNCEMENT LATE LAST YEAR THAT IT HAD DISCOVERED A PROMISING
DEPOSIT NEAR EUREKA NEV WAS ENCOURAGING

WE THINK IT'S A PROPERTY WELL WORTH WATCHING HE SAYS THE STOCK NOW
PROVIDES AN EXPLORATION PLAY 9401190054 940119 TEXAS JOURNAL  
LETTERS TO THE EDITOR DEFENDING DMI

I READ WITH INTEREST YOUR ARTICLE ABOUT CRAFTMADE INTERNATIONAL HEARD IN
TEXAS JAN 5

I WAS CEO FOUNDER AND 85OWNER OF DMI PRODUCTS WHICH WAS BOUGHT BY
CRAFTMADE IN 1991 DMI ENJOYED VERY RAPID GROWTH CAUSING IT TO BE NAMED TO
THE INC MAGAZINE 500 LIST OF AMERICA'S FASTESTGROWING COMPANIES IN 1988
THE COMPANY MISSED IN 1989 BY JUST A FEW PERCENTAGE POINTS

UNFORTUNATELY OUR RAPID GROWTH AND THE CRASH OF TEXAS AMERICAN BANK IN 1989
CREATED THE CASHFLOW CRISIS THAT EVERY CEO DREADS ALTHOUGH WE WERE
PERFORMING ON OUR LINE OF CREDIT THE FEDS WHO TOOK OVER TEXAS AMERICAN
BANK FORCED OUR LOAN TO BE CALLED CRAFTMADE BECAME OUR SAVIOUR

CONTRARY TO YOUR ARTICLE OUR ONLY SHORTCOMING WAS A LACK OF CASH TO
CONTINUE OUR GROWTH WE NEEDED A LOT OF CASH TO IMPORT FOR OUR LARGEST
CUSTOMER PIER 1 WE WERE PIER 1'S LARGEST LAMP SUPPLIER SELLING MORE THAN
3 MILLION A YEAR

BOMBAY WAS NOT A CUSTOMER OF DMI'S AT THE TIME OF THE MERGER IN 1990 BUT
THEY WANTED TO BE WE SIMPLY COULDN'T HANDLE THEM WITH OUR BANKING PROBLEMS
UNFORTUNATELY CRAFTMADE LOST THE BULK OF PIER 1'S BUSINESS EARLY ON BECAUSE
OF QUALITY AND DELIVERY PROBLEMS THUS THE 200000 LOSS THAT YOU REFERRED
TO IN THE ARTICLE BOMBAY WAS WAITING IN THE WINGS AND CRAFTMADE DID A
GREAT JOB IN HELPING THEM DEVELOP THEIR LAMP PROGRAM PIER 1 SEEMS TO BE ON
THE WAY BACK NOW AS A LARGE LIGHTING CUSTOMER FOR CRAFTMADE 9401190053
940119 FOREIGN EXCHANGE TRADERS CASH IN RECENT DOLLAR PROFITS AS GERMAN
RATES CUT APPEARS UNLIKELY  BY GARY ROSENBERGER SPECIAL TO THE
WALL STREET JOURNAL

NEW YORK TRADERS CASHING IN RECENT PROFITS SOLD THE DOLLAR YESTERDAY ON
INDICATIONS THAT THE BUNDESBANK ISN'T YET PRIMED TO CUT INTEREST RATES
WHILE THE FEDERAL RESERVE COULD STALL ON A RATE BOOST

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17465 MARKS DOWN FROM 17553
MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
11075 YEN DOWN FROM 11106 YEN STERLING WAS TRADING AT 14960 UP FROM
14932

ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11085 YEN AND AT
17457 MARKS

THE GERMAN CENTRAL BANK ISSUED ITS JANUARY REPORT YESTERDAY STRONGLY
QUESTIONING ANY POLICY OF DEPRECIATING THE MARK BY CUTTING KEY INTEREST
RATES AND STATING THAT IT WASN'T AN OPTION FOR SOLVING GERMANY'S ECONOMIC
WOES

TRADERS SAID THE REPORT SUGGESTED THAT THE BANK'S POLICYMAKING COUNCIL IS
UNLIKELY TO CUT ITS KEY INTEREST RATES WHEN IT MEETS TOMORROW THE DOLLAR'S
STRONG RISE AGAINST THE MARK IN JANUARY WAS LARGELY PREDICATED ON
SPECULATION THAT THE BUNDESBANK HAD TO CUT RATES TO FOSTER AN ECONOMIC
TURNAROUND FOR GERMANY WHILE THE FED WOULD RAISE RATES SOON TO STAVE OFF
US INFLATION PRESSURES

HIGH INTEREST RATES BECAUSE THEY ARE ALLURING TO INVESTORS GENERALLY HELP
PROP UP THE STRENGTH OF A CURRENCY

TRADERS NOTED STATEMENTS YESTERDAY BY TWO FEDERAL RESERVE GOVERNORS WHO
SUGGESTED THAT THE US ECONOMIC RECOVERY IS PROCEEDING AMID SUBDUED
INFLATIONARY PRESSURES THAT INDICATED THE FED IS LESS LIKELY TO INCREASE
INTEREST RATES IN THE SHORT TERM TRADERS SAID

ROBERT FORRESTAL PRESIDENT OF THE FEDERAL RESERVE BANK OF ATLANTA
ESTIMATED FOURTHQUARTER US ECONOMIC GROWTH WAS 5 MAYBE EVEN HIGHER
HE ADDED THAT HE WAS HEARTENED BY THE FACT THAT OVER THE PAST FEW YEARS
WE'VE BEEN ABLE TO BRING INFLATION DOWN FROM THE LEVELS OF THE EARLY 1980S

SIMILARLY ALFRED BROADDUS PRESIDENT OF THE FEDERAL RESERVE BANK OF
RICHMOND VA SAID THAT THE CORE RATE OF CONSUMER PRICES WHICH EXCLUDES
VOLATILE FOOD AND ENERGY PRICES ROSE ONLY 31 IN 1993

TRADERS SAID THE STATEMENTS BY THE TWO FED OFFICIALS DID LITTLE TO SUGGEST
THAT INFLATION IS A NEARTERM THREAT TOGETHER WITH MILD CONSUMER PRICE AND
PRODUCER PRICE DATA RELEASED LAST WEEK THE COMMENTS HELPED OVERCOME MUCH OF
THE RECENT SPECULATION ABOUT A NEARTERM INTERESTRATE INCREASE TRADERS
ADDED

LONG DOLLAR POSITIONS ARE UNRAVELING A LITTLE BIT ON THE INTERESTRATE
ISSUE SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE
AT THE BANK OF BOSTON

THE DIVERGENCE IN INTEREST RATES THAT EVERYONE SAW EARLIER IN JANUARY IS
NOW GOING THE OTHER WAY AND THAT SPOOKED A FEW PEOPLE MR EVANGELISTA
SAID

THERE IS A PERCEPTION THAT THE GERMANS WILL HOLD OFF CUTTING RATES AND
THAT THE FED WON'T RAISE ITS RATES HE ADDED BUT IN THE LONGER RUN MR
EVANGELISTA SUGGESTED BOTH CENTRAL BANKS WILL HAVE TO ADJUST THEIR RATES
THE US ECONOMIC RECOVERY EVENTUALLY WILL FUEL INFLATION AND GERMAN
INTEREST RATES ARE BEING KEPT ARTIFICIALLY HIGH

BY THE END OF THE FIRST QUARTER THE FED WILL HAVE TO JACK UP INTEREST
RATES AT LEAST A QUARTER POINT AND THE BUNDESBANK WILL HAVE TO CUT IN
FEBRUARY HE SAID 9401190052 940119 BUSINESS BRIEFS

OWENSCORNING FIBERGLAS CORP TOLEDO OHIO SOLD ITS 25 INTEREST IN CAE
FIBERGLASS LTD TO ZCL MANUFACTURING CANADA INC OF EDMONTON ALBERTA
TERMS WEREN'T DISCLOSED

CAMPBELL SOUP CO CAMDEN NJ WILL SPEND 57 MILLION FOR IMPROVEMENTS AT
ITS SACRAMENTO CALIF PLANT

PARTECH HOLDINGS CORP COLUMBUS OHIO AGREED TO BUY WMLOFM IN
TALLAHASSEE FLA FROM EDWARD WINTON TERMS WEREN'T DISCLOSED

OHM CORP FINDLAY OHIO FINALIZED A CONTRACT WITH THE US ENVIRONMENTAL
PROTECTION AGENCY FOR EMERGENCY CLEANUPS THE AGENCY PICKED UP THE FIRST OF
FOUR OPTION YEARS THE VALUE OF THE CONTRACT COULD BE AS MUCH AS 100
MILLION OVER FIVE YEARS 9401190051 940119 WHO'S NEWS ALLEGHENY LUDLUM
CORP

ALLEGHENY LUDLUM CORP PITTSBURGH ROBERT P BOZZONE 60 YEARS OLD
ANNOUNCED PLANS TO RETIRE IN JUNE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
OF THIS SPECIALTY STEELMAKER A COMPANY SPOKESMAN SAID MR BOZZONE HAS LONG
SAID HE WANTED TO RETIRE FROM THE CHIEF EXECUTIVE'S POST WHEN HE REACHED 60
MR BOZZONE IS EXPECTED TO BE NAMED VICE CHAIRMAN AND ASSUME A CONSULTING
ROLE WITH THE COMPANY HE ALSO HOLDS ABOUT 9 OF THE COMPANY'S SHARES
OUTSTANDING MR BOZZONE AND CHAIRMAN RICHARD P SIMMONS WILL RECOMMEND THAT
THE BOARD NAME ARTHUR H ARONSON PRESIDENT AND CHIEF EXECUTIVE MR ARONSON
58 IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9401190050
940119 CREDIT MARKETS SOME MUNICIPAL BOND RATINGS MAY BE AFFECTED BY
EARTHQUAKE BUT SWEEPING CHANGES UNLIKELY  BY THOMAS T VOGEL JR 
STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK BESIDES THE DEVASTATION OF PROPERTY AND LIVES THE EARTHQUAKE
WHICH STRUCK LOS ANGELES MONDAY COULD HAVE FINANCIAL REPERCUSSIONS SINCE
CALIFORNIA IS THE NATION'S LARGEST ISSUER OF MUNICIPAL BONDS

BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP SAID IT WAS
TOO SOON TO OFFER OFFICIAL ASSESSMENTS OF THE DAMAGE AND ITS EFFECT ON
BONDHOLDERS BUT OFFICIALS AT BOTH RATING AGENCIES SUGGESTED THAT WHILE THEY
WEREN'T EXPECTING ANY SWEEPING RATING CHANGES CERTAIN TYPES OF BONDS COULD
BE IN FOR SHARP DOWNGRADES

INVESTORS AND MARKET ANALYSTS SAID THE VALUE OF MUNICIPAL BONDS OUTSTANDING
WON'T NECESSARILY DROP BECAUSE OF THE EARTHQUAKE THAT'S BECAUSE THE ABILITY
OF LOCAL ISSUERS TO PAY THEIR BILLS WILL BE HELPED BY DISASTER RELIEF COMING
FROM THE FEDERAL GOVERNMENT

MEANWHILE THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/4 POINT OR
MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 99 22/32 ITS YIELD
WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 626 FROM
629 ON FRIDAY US BOND MARKETS WERE CLOSED MONDAY FOR THE MARTIN LUTHER
KING JR HOLIDAY

LAST YEAR ISSUERS IN CALIFORNIA SOLD 3812 BILLION OF NEW MUNICIPAL BONDS
WITH MATURITIES OF 13 MONTHS OR MORE ACCORDING TO SECURITIES DATA CO
REPESENTING 132 OF ALL ISSUES SOLD IN THE US LOS ANGELES COUNTY AND THE
CITY OF LOS ANGELES ARE TWO OF THE STATE'S BIGGEST ISSUERS

EARLY YESTERDAY GREG HARRINGTON DIRECTOR OF TRADING AND RESEARCH AT
FRANKLIN GROUP OF FUNDS THE NATION'S LEADING INVESTOR IN CALIFORNIA
MUNICIPAL BONDS DIRECTED HIS COLLEAGUES TO CALL ISSUERS IN THE LOS ANGELES
AREA TO GET SOME IDEA OF THE EXTENT OF THE EARTHQUAKE DAMAGE FRANKLIN OWNS
ABOUT 16 BILLION OF CALIFORNIA MUNICIPAL BONDS IN VARIOUS FUNDS IT MANAGES
FOR INVESTORS WE COULDN'T FIND ANYTHING DISTURBING ABOUT OUR PORTFOLIO OF
HOLDINGS HE SAID THOUGH DETAILS OF THE DAMAGE ARE STILL SKETCHY BECAUSE
MANY PUBLIC OFFICIALS COULD NOT BE REACHED

THERE IS EXTENSIVE DAMAGE HE SAID BUT MR HARRINGTON SAID HE EXPECTED
THE DAMAGE TO BE LESS THAN THAT OF THE EARTHQUAKE WHICH HIT SAN FRANCISCO IN
1989

THE MAIN DAMAGE IS TO THE HIGHWAYS HE EXPLAINED MANY OF WHICH ARE
FEDERAL HIGHWAYS WITH PART OF THE EXPENSES TO BE BORNE BY THE US
GOVERNMENT THERE HAS TO BE SOME DAMAGE TO LOCAL AND COUNTY ROADS HE
SAID BUT THAT DIDN'T APPEAR TO BE AS EXTENSIVE

MORE IMPORTANT FOR INVESTORS IT DOESN'T APPEAR THE EARTHQUAKE WILL
JEOPARDIZE THE ABILITY OF MANY ISSUERS TO CONTINUE PAYING THE COUPONS ON
BOND ISSUES

BUT THE ABILITY TO PAY DEPENDS LARGELY ON THE TYPE OF ISSUER INVOLVED
POINTED OUT JOSEPH ROSENBLUM DIRECTOR OF MUNICIPAL RESEARCH AT SANFORD C
BERNSTEIN & CO OF NEW YORK BONDS ISSUED TO BACK SPECIFIC PROJECTS SEEM
MOST VULNERABLE TO RATING CHANGES AND EVEN DEFAULT HE SAID THE PROJECT
MAY HAVE BEEN DESTROYED HE SAID ALSO AT RISK ARE LEASE FINANCING BONDS
WHERE AN ISSUER PAYS OFF A DEBT WITH THE REVENUES OF A PROJECT FINANCED BY
BONDS BONDS BACKED BY REVENUES OF A WATER SEWAGE TRANSPORTATION OR
ELECTRICAL SYSTEM IN THE LOS ANGELES AREA MAY EXPERIENCE SOME SHORTTERM
PRICE DROPS DUE TO A DISRUPTION IN REVENUES BUT WHEN REPAIRS ARE MADE THE
PRICES SHOULD RECOVER HE SAID THE QUESTION IS HOW EXTENSIVE IS THE DAMAGE
TO THE SYSTEM SAID MR ROSENBLUM

ACCORDING TO A REPORT FROM MOODY'S ON THE EFFECT OF THE EARTHQUAKE A MORE
VULNERABLE CLASS OF DEBT IS CERTIFICATES OF PARTICIPATION WHERE DEBTSERVICE
PAYMENTS ARE CONDITIONAL UPON HAVING BENEFICIAL USE OF THE ASSET BEING
LEASED THIS FORM OF BOND IS POPULAR IN THE LOS ANGELES AREA SAID MOODY'S
WITH NEARLY 100 CERTIFICATES OF PARTICIPATION RATED BY MOODY'S IN LOS
ANGELES COUNTY ALONE BUT ABOUT 40 OF THESE CARRY THE SAME RATINGS AS THE
CITY AND COUNTY OF LOS ANGELES WHICH ARE UNLIKELY TO BE SHARPLY DOWNGRADED

ACCORDING TO THE MOODY'S REPORT THE EFFECT OF A NATURAL DISASTER ON DEBT
SECURED BY A GENERAL GOVERNMENT PLEDGE IS INDIRECT THIS TYPE OF DEBT
INCLUDES GENERAL OBLIGATION AND ESSENTIAL PURPOSE REVENUE BONDS AND THE
PLEDGE TO MAKE DEBT SERVICE PAYMENTS IS ABSOLUTE AND UNCONDITIONAL MOODY'S
SAID IT DOES NOT EXPECT ANY RATING ADJUSTMENT OVER THE SHORTTERM TO RESULT
FOR SUCH BONDS

THESE SOCALLED GENERAL OBLIGATION BONDS WHICH ARE ISSUED BY STATE AND
LOCAL ISSUERS ARE UNLIKELY TO BE ADVERSELY AFFECTED BY AN EARTHQUAKE SINCE
THEY ARE NOT BACKED BY ANY SPECIFIC PROJECT BY THE FULL FAITH AND CREDIT OF
THE ISSUER SO EVEN THOUGH THERE IS SEVERE DAMAGE TO CERTAIN SECTORS OF LOS
ANGELES COUNTY THAT DOES NOT TOTALLY HAMPER THE COUNTY'S ABILITY TO PAY OFF
ITS GENERAL OBLIGATION BONDS THE BIG CAVEAT IN THIS EQUATION CONCERNS THE
AREA'S HIGHWAYS AND HOW LONG IT WILL BE BEFORE THEY ARE REPAIRED TOURISM
AND BUSINESS SPENDING IN LOS ANGELES COULD DROP OFF IF REPAIRS ARE LENGTHY
AND OVER TIME THIS COULD MAKE DEBT PAYMENTS DIFFICULT

THE IMPACT OF THE EARTHQUAKE ON CALIFORNIA WILL BE DIFFERENT THAN THAT OF
OTHER RECENT NATURAL DISASTERS INCLUDING HURRICANE ANDREW AND THE SAN
FRANCISCO EARTHQUAKE SAID MR ROSENBLUM OF SANFORD & BERNSTEIN IN THE
PAST SUCH NATURAL DISASTER HAVE HAD LITTLE IMPACT ON MUNICIPAL BONDS HE
SAID BUT CALIFORNIA HAS GONE THROUGH A VERY ROUGH PERIOD LATELY AND THIS
EARTHQUAKE COULD DISCOURAGE MORE INVESTMENTS AND TOURISTS IN THE AREA

THE EARTHQUAKE HAS ALREADY DELAYED AT LEAST ONE MUNICIPAL BOND OFFERING
SLATED FOR PRICING THIS WEEK

A 20 MILLION ANAHEIM PUBLIC FINANCING AUTHORITY WATER REVENUE BOND ISSUE
TO BE SOLD COMPETITIVELY TODAY WAS DELAYED UNTIL JAN 25 DESPITE THE
ABSENCE OF DIRECT DAMAGE TO THE ISSUER'S SYSTEM

MEANWHILE A 2259 MILLION REFUNDING EXPECTED THIS WEEK FROM SOUTHERN
CALIFORNIA PUBLIC POWER AUTHORITY IS BEING POSTPONED MAINLY BECAUSE OF
STRUCTURAL PROBLEMS WITH THE OFFERING ITSELF

SCATTERED BUYING LIFTED PRICES OF TREASURY SECURITIES WITH THE BEST GAINS
POSTED BY ISSUES MATURING IN 10 YEARS OR LESS

THERE WAS NO TRADING IN THE CASH BOND MARKET MONDAY IN OBSERVANCE OF THE
MARTIN LUTHER KING JR HOLIDAY

THE BOND MARKET BEGAN THE DAY LOWER CONTINUING THE SELLOFF SPARKED LATE
LAST WEEK BY REPORTS SHOWING STRONGERTHANEXPECTED BUSINESS ACTIVITY BUT
BY MIDMORNING THE TIDE BEGAN TO TURN

TRADERS SAID THE MARKET GOT A LIFT FROM SWAPRELATED BUYING OF INTERMEDIATE
NOTES AND FROM BUYING RELATED TO MUNICIPAL DEFEASANCE UNDER DEFEASANCE A
STATE OR LOCAL GOVERNMENT PREREFUNDS OLDER HIGHER INTEREST DEBT BY ISSUING
NEW SECURITIES THE PROCEEDS FROM THE NEW ISSUANCE ARE FREQUENTLY INVESTED
IN TREASURY SECURITIES UNTIL THE OLDER DEBT CAN BE CALLED ABOUT 300
MILLION OF MUNICIPAL REFUNDING DEBT WAS ISSUED YESTERDAY

PARTICIPANTS SAID DEALER SHORTCOVERING ALSO HELPED PUSH PRICES HIGHER IN A
SHORT SALE A TRADER BETS PRICES WILL GO LOWER BY SELLING A BORROWED
SECURITY IN HOPES OF BUYING IT BACK AT A LOWER LEVEL AND POCKETING THE
DIFFERENCE

HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND
26WEEK BILLS

RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE
VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER
BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR
WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR

BOTH ISSUES ARE DATED JAN 20 THE 13WEEK BILLS MATURE APRIL 21 1994 AND
THE 26WEEK BILLS MATURE JULY 21 1994

PAPERHUNGRY INVESTORS SNAPPED UP 268 BILLION OF NEW BONDS YESTERDAY IN 15
DIFFERENT OFFERINGS MANY OF THE OFFERINGS WERE BY FIRST TIME OR INFREQUENT
ISSUERS INCLUDING DUTY FREE INTERNATIONAL INC'S 115 MILLION OFFERING TYCO
INTERNATIONAL LTD'S 105 MILLION DEBT OFFERING AND A 250 MILLION DEBT
OFFERING FROM MITCHELL ENERGY & DEVELOPMENT CORP

OTHER DEALS TO HIT THE MARKET WERE SOUTHERN UNION CO'S 475 MILLION DEAL
PUBLIC SERVICE CO OF COLORADO'S 2127 MILLION TWOPART ISSUE AND UNION
PACIFIC CORP'S 150 MILLION NOTE OFFERING

IN COMPETITIVE BIDS EARLY IN THE DAY VIRGINIA ELECTRIC AND POWER CO SOLD
125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS WHILE GTE NORTH INC A
UNIT OF GTE CORP SOLD 250 MILLION OF DEBENTURES

TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT YIELD SPREADS OF CORPORATE
BONDS OVER COMPARABLE TREASURY SECURITIES CONTINUED TO NARROW AS INVESTORS
SEARCHED FOR PLACES TO INVEST CAPITAL SINCE THE NEWISSUE CALENDAR HAS BEEN
SURPRISINGLY LIGHT TRADERS SAID NARROWING YIELD SPREADS ARE OFTEN A SIGN
OF STRENGTHENING DEMAND THERE'S A LOT OF MONEY OUT THERE AND THERE'S NO
PLACE FOR IT TO GO ONE TRADER COMMENTED

IN THE JUNK BOND MARKET TRADING WAS LIGHT WITH THE PRICES OF MANY BONDS
ENDING UNCHANGED

CURRENT COUPON MORTGAGEBACKED SECURITIES FINISHED MODERATELY HIGHER

IN SECONDARY DEALINGS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 1/2S FOR
FEBRUARY DELIVERY WERE UP 5/32 AT 99 22/32 FEDERAL HOME LOAN MORTGAGE CORP
GOLD 6 1/2S WERE UP 6/32 AT 99 28/32 AND FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6 1/2S WERE UP 5/32 AT 99 23/32

SEPARATELY MORTGAGEBACKED PARTICIPANTS WERE SORTING OUT THE EFFECTS OF THE
LOS ANGELES EARTHQUAKE ON MORTGAGE SECURITIES ISSUED BY PRIVATE COMPANIES AS
WELL AS BY THE QUASIFEDERAL AGENCIES

MOST ANALYSTS SAID IT WAS TOO EARLY TO GAUGE THE EXTENT OF THE DESTRUCTION
OR HOW MANY HOMES DAMAGED BY THE EARTHQUAKE WILL RESULT IN HOMEOWNERS
WALKING AWAY FROM THEIR MORTGAGE LOANS

LYNN ADLER CONTRIBUTED TO THIS ARTICLE 9401190049 940119 INTERNATIONAL 
JAPAN'S BIG FOUR BROKERAGE FIRMS DESPITE HIGHER PROFITS ARE DOWNGRADED 
 BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL

TOKYO THESE ARE SWEET TIMES FOR JAPAN'S GIANT SECURITIES COMPANIES AFTER
FOUR YEARS OF SAGGING EARNINGS AND BRUISED SHARE PRICES PROFITS ARE UP AND
BUSINESS IS GROWING

THE BIG FOUR BROKERAGE FIRMS ARE AMONG THE BEST PERFORMERS IN TOKYO
OUTPACING A MARKET THAT IS OFF TO A STRONG 1994

DON'T BET ON THE LUCK LASTING

THE BROKERAGE FIRMS STILL ARE HAMSTRUNG BY EXCESSIVE COSTS AND VULNERABLE TO
A NEW MARKET DOWNTURN ANALYSTS SAY IN THE MIDST OF THIS YEAR'S MINIBULL
RUN STANDARD & POOR'S ASIA DELIVERED ANOTHER BLOW LOWERING ITS RATINGS OF
JAPAN'S FOUR BROKERAGEFIRM GIANTS NOMURA SECURITIES CO DAIWA SECURITIES
CO NIKKO SECURITIES CO AND YAMAICHI SECURITIES CO

THE SECURITIES INDUSTRY IN JAPAN WILL CONTINUE TO BE NEGATIVELY AFFECTED BY
LOW MARKET TURNOVER AND LIMITED NEW EQUITY OFFERINGS S&P SAID IN THIS
KIND OF ENVIRONMENT IT WILL BE DIFFICULT FOR THEM TO RECOVER MUCH OF THEIR
PAST EARNINGS POWER S&P LAST DOWNGRADED NOMURA IN 1991 AND THE OTHER
THREE IN 1992

THE TOKYO MARKET HAS BEEN UNUSUALLY BUOYANT LATELY EVEN WITH A SECOND
STRAIGHT DAY OF LOSSES TUESDAY THE NIKKEI 225STOCK INDEX CLOSED AT
1851455 UP 63 IN THE PAST TWO WEEKS THE BROKERS HAVE DONE EVEN BETTER
NIKKO IS UP 83 NOMURA IS UP 97 DAIWA HAS GAINED 127 AND YAMAICHI
HAS ADVANCED A WHOPPING 227 THE NIHON KEIZAI SHIMBUN NEWSPAPER THIS WEEK
SHARPLY BOOSTED ITS PROJECTIONS FOR THE BIG FOUR'S PROFITS IN THE FISCAL
YEAR ENDING IN MARCH

THE BROKERAGE FIRMS' SUNNIER OUTLOOK REFLECTS A SURGE IN TRADING VOLUME AS
WELL AS THE PRICE RALLY TURNOVER WAS MORE THAN 450 MILLION SHARES A DAY
LAST WEEK COMPARED WITH ABOUT 200 MILLION SHARES A DAY AT THE END OF 1993
THAT MAKES AN ENORMOUS DIFFERENCE TO THE PROFITS OF THESE
COMMISSIONDEPENDENT FIRMS

BUT IT ISN'T SUSTAINABLE THE BEARS SAY VOLUME ALREADY HAS BEEN LOWER THIS
WEEK OVER THE LONGER TERM THE GOVERNMENT'S ARTIFICIAL SUPPORT FOR THE
MARKET WILL CONTINUE TO DAMP TRADING SAYS YOSHIO SHIMA ASSISTANT DIRECTOR
OF S&P ASIA THE MARKET IS BEING KEPT AT QUITE HIGH VALUATIONS HE SAYS
AND THAT WILL RESTRICT MARKET ACTIVITY

ANOTHER DEMON CORPORATE BLOAT THE BIGGEST PROBLEM IS THAT THEIR EXPENSES
ARE WAY TOO HIGH SAYS BETSY DANIELS AN ANALYST AT MORGAN STANLEY IN
TOKYO NOMURA ONE OF THE STRONGEST HAS A RETURNONEQUITY TARGET OF 5
THE AVERAGE TARGET OF A US INVESTMENT BANK IS 20 FOR THE YEAR ENDED
MARCH 31 1993 SHE NOTES NOMURA'S RETURN ON EQUITY WAS JUST 015

OF COURSE TOKYO HAS ITS BULLS THESE DAYS PARTICULARLY AMONG THE FOREIGN
INVESTORS WHO HAVE LED THE RECENT BUYING THEY SEE A MARKET OVERDUE FOR A
RISE AFTER FOUR BAD YEARS THEY THINK THE JAPANESE GOVERNMENT'S
MULTITRILLION YEN PUBLIC WORKS SPLURGE WILL SPARK A BROADER ECONOMIC
RECOVERY

CORPORATE PROFITS WILL DOUBLE OVER TWO YEARS PREDICTS CHRIS MITCHINSON 
A LONGTIME JAPAN STRATEGIST FOR SALOMON BROTHERS ASIA LTD WHO IS NOW A
PRIVATE JAPANESE INVESTMENT CONSULTANT IN LONDON WE THINK THE NIKKEI WILL
BE BETWEEN 25000 AND 30000 BY THE END OF THE YEAR HE SAYS JAPANESE
INVESTORS WILL JOIN THE FOREIGN STOCK BUYERS LATER THIS YEAR AND RECOMMENDS
LOADING UP ON SHARES OF NOMURA AND DAIWA

EVEN SUCH A RALLY HOWEVER MAY NOT BENEFIT THE BROKERAGE FIRMS
FINANCIALMARKET DEREGULATION MR SHIMA NOTES ALREADY HAS JAPAN'S
BELEAGUERED BANKS ENCROACHING ON THE BROKERS' TURF CORPORATEBOND
UNDERWRITING FEES HAVE FALLEN BY TWOTHIRDS IN THE PAST YEAR BECAUSE OF
COMPETITION HE SAYS WE EXPECT THE NEGATIVE IMPACT OF DEREGULATION TO
CONTINUE IF IT'S IN BOND UNDERWRITING NOW WHY NOT EQUITYLINKED
UNDERWRITING IN THE FUTURE

THE BROKERS THEMSELVES OF COURSE ARE MORE OPTIMISTIC OUR CONSOLIDATED
EARNINGS HAVE STARTED TO IMPROVE A NOMURA SPOKESMAN SAYS WE DON'T THINK
FINANCIAL LIBERALIZATION AND INCREASED COMPETITION WILL AFFECT OUR
EARNINGS SAYS A NIKKO OFFICIAL WE HAVE NO NEGATIVE FORECASTS

BESIDES EVEN AFTER THE BAD YEARS JAPAN'S BROKERAGE FIRMS ARE STILL RICH
NOMURA STILL HAS A TON OF CASH MS DANIELS SAYS ADDING THAT THE
COMPANIES CAN CONTINUE TO WEATHER A BEAR MARKET THE CAPITAL THEY BUILT UP
IN THE LATE 1980S RALLY MEANS THAT EVEN WITH YESTERDAY'S DOWNGRADES THE
JAPANESE BROKERAGE FIRMS STILL HAVE HIGHER RATINGS THAN MANY OF THEIR MORE
PROFITABLE US COUNTERPARTS

S&P LOWERED ITS RATINGS OF DEBT ISSUED BY GUARANTEED SUBSIDIARIES OF DAIWA
TO SINGLEA1 FROM SINGLEA1PLUS NIKKO WAS LOWERED TO SINGLEA FROM
SINGLEAPLUS NOMURA'S RATING WAS DROPPED TO DOUBLEA FROM DOUBLEAPLUS
YAMAICHI FELL TO SINGLEAMINUS FROM SINGLEA 9401190048 940119 WHO'S
NEWS MINNESOTA MUTUAL'S CLYMER RESIGNS POSTS OF PRESIDENT AND CEO

ST PAUL MINN MINNESOTA MUTUAL LIFE INSURANCE CO SAID JOHN CLYMER ITS
PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED TO REENTER THE INVESTMENT
MANAGEMENT BUSINESS

MR CLYMER 46 YEARS OLD SAID IN A LETTER THE COMPANY MADE PUBLIC THAT HE
PLANS TO MANAGE EITHER INSTITUTIONAL OR PRIVATE FUNDS FROM A BASE IN ST
PAUL

HE JOINED THE 10 BILLIONASSET MUTUAL INSURANCE CONCERN IN 1972 AS AN
INVESTMENT ANALYST SERVED AS VICE PRESIDENT OF INVESTMENTS AND WAS NAMED
PRESIDENT IN 1991 HE BECAME CHIEF EXECUTIVE LAST YEAR

COLEMAN BLOOMFIELD THE 67YEAROLD CHAIRMAN OF MINNESOTA MUTUAL'S BOARD OF
TRUSTEES WHO RELINQUISHED THE CEO TITLE TO MR CLYMER EIGHT MONTHS AGO
WILL SERVE AS CHIEF EXECUTIVE WHILE THE COMPANY CONDUCTS A SEARCH FOR A
SUCCESSOR 9401190047 940119 WHO'S NEWS UNIT OF CMS ENERGY NAMES
PRESIDENT CEO AS BUCKMAN RESIGNS

DEARBORN MICH FREDERICK W BUCKMAN PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF CMS ENERGY CORP'S PRINCIPAL SUBSIDIARY CONSUMERS POWER CO IS
RESIGNING TO ACCEPT THE SAME POSITIONS AT PACIFICORP A PORTLAND ORE
UTILITY

MICHAEL G MORRIS 47 FORMERLY CHIEF OPERATING OFFICER OF THE CONSUMERS
POWER UNIT WAS NAMED TO SUCCEED MR BUCKMAN AS PRESIDENT AND CHIEF
EXECUTIVE OFFICER

MR MORRIS JOINED CONSUMERS POWER IN 1988 AND LED NEGOTIATIONS SETTLING A
DISPUTE WITH THE MICHIGAN PUBLIC SERVICE COMMISSION OVER CONFLICTS ARISING
FROM THE AMOUNT OF ENERGY IT PURCHASED FROM ITS 49OWNED MIDLAND ENERGY
PLANT

MR BUCKMAN 47 BEGAN HIS CAREER WITH CONSUMERS POWER AS AN INTERN IN 1967
HE HAS BEEN PRESIDENT OF THE SUBSIDIARY SINCE 1988 AND CHIEF EXECUTIVE
OFFICER SINCE 1992 9401190046 940119 BUSINESS BRIEF TRIBUNE CO 
COUNTRY MUSIC TO BE FOCUS OF NEW TV RADIO PROGRAMS

TRIBUNE CO'S TRIBUNE ENTERTAINMENT PLANS AN ASSAULT ON THE COUNTRYMUSIC
ENTERTAINMENT MARKETPLACE WITH A WEEKLY SYNDICATED TELEVISION SHOW CALLED
THE ROAD AND A WEEKLY RADIO PROGRAM NEXT FALL

TRIBUNE ALSO PLANS RELATED VENTURES INCLUDING PAYPERVIEW CABLE SPECIALS
AND HOME VIDEO RELEASES IN ADDITION OVER A PERIOD OF THREE TO FOUR YEARS
THE COMPANY EXPECTS TO DEVELOP A CHAIN OF COUNTRYMUSIC CLUBS CONCERTS AND
A MULTIMEDIA DIRECT MARKETING OPERATION SAID DON HACKER TRIBUNE
ENTERTAINMENT PRESIDENT AND CHIEF EXECUTIVE

THE FIRST YEAR'S INVESTMENT IN THE EVENTS WILL BE ABOUT 10 MILLION MR
HACKER SAID

THE ROAD TO BE PRODUCED BY LOS ANGELESBASED HIGH FIVE PRODUCTIONS WILL
FOLLOW COUNTRY ARTISTS IN CONCERT BACK STAGE AND ON THE ROAD IN A WAY
THAT HASN'T BEEN DONE MR HACKER SAID IT WILL BE CARRIED BY TRIBUNE'S
SEVEN TELEVISION STATIONS 9401190045 940119 WHO'S NEWS LOCKHEED CORP

LOCKHEED CORP CALABASAS CALIF SHERMAN N MULLIN WILL RETIRE AS
PRESIDENT OF LOCKHEED ADVANCED DEVELOPMENT CO KNOWN AS THE SKUNK WORKS
AT THE END OF FEBRUARY HE WILL BE SUCCEEDED BY JACK S GORDON 53 WHO HAS
BEEN EXECUTIVE VICE PRESIDENT OF THE UNIT SINCE 1990 MR MULLIN 58 YEARS
OLD JOINED WHAT WAS THEN CALLED LOCKHEED ELECTRONICS CO IN 1959 AS AN
ELECTRONICS ENGINEER HE HELD A NUMBER OF DIFFERENT POSTS AT LOCKHEED BEFORE
BEING NAMED PRESIDENT OF THE SKUNK WORKS IN DECEMBER 1990 FOUNDED IN 1943
THE UNIT IS THE DESIGNER OF SOME OF THE NATION'S MOST SECRET AND ELABORATE
AIRCRAFT INCLUDING THE U2 AND SR71 SPY PLANES AND THE F117A
RADAREVADING OR STEALTH FIGHTER 9401190044 940105 TEXAS JOURNAL 
 HEARD IN TEXAS CRAFTMADE WINS PRAISE BUT LINGERS IN SHADOW OF
ITS LARGEST CUSTOMER  BY JEFF D OPDYKE STAFF REPORTER OF THE WALL
STREET JOURNAL

GRAND PRAIRIE TINY CRAFTMADE INTERNATIONAL HAS COMPILED THE KIND OF FACTS
AND FIGURES THAT WOULD MAKE MANY COMPANIES COVETOUS

 ANNUAL SALES ARE GROWING BY 20 EARNINGS BY 40

 THE COMPANY'S KEY BUSINESS SELLING MODERATETO HIGHEND CEILING FANS
EXCLUSIVELY THROUGH LIGHTING SHOWROOMS IS GAINING MARKET SHARE

 THERE ISN'T ANY LONGTERM DEBT AND MANAGEMENT HAS A 40 STAKE IN THE
COMPANY

 ITS ROLE AS THE PRIMARY SUPPLIER OF LAMPS TO BOMBAY CO ONE OF THE
HOTTEST RETAILERS IS GROWING

WITH ALL OF THAT YOU'D THINK CRAFTMADE WOULD INSPIRE A WHIRLWIND OF
ACTIVITY AMONG INVESTORS BUT THE STOCK HAS BARELY CREATED A BREEZE IN THE
PAST YEAR IT HAS HOVERED FOR THE MOST PART BETWEEN 9 AND 10 CRAFTMADE'S
EARNINGS MULTIPLE OF 15 BASED ON PROJECTED 1994 EARNINGS IS LESS THAN HALF
OF THE COMPANY'S EXPECTED GROWTH RATE INDICATING THE STOCK MIGHT BE
UNDERVALUED AND THERE AREN'T EVEN ENOUGH ANALYSTS FOLLOWING THE COMPANY TO
PUT TOGETHER A SIGNIFICANT FAN CLUB

THE PROBLEM NOBODY KNOWS THIS COMPANY EXISTS SAYS DICK EDELMAN ANALYST
AT SOUTHWEST SECURITIES IN DALLAS BOMBAY RECEIVES ALL THE RECOGNITION
NOBODY EVER PAYS ATTENTION TO ITS VENDORS

THAT WILL CHANGE FOR CRAFTMADE ANALYSTS SAY IF THE COMPANY'S RESULTS
CONTINUE TO INCREASE AT A HEALTHY PACE AND THERE'S NO REASON TO THINK THAT
WON'T HAPPEN CONTENDS TIM EBRIGHT A PORTFOLIO MANAGER AT EAGLE ASSET
MANAGEMENT A ST PETERSBURG FLA FUND COMPANY THAT HOLDS 315000
CRAFTMADE SHARES

TO BE SURE THERE ARE SOME WELLDEFINED RISKS ALTHOUGH IT IS QUIETLY
PROSPERING IN THE SHADOW OF BOMBAY CO'S GROWTH CRAFTMADE RELIES HEAVILY ON
THE FORT WORTH RETAILER'S ORDERS AS MUCH AS 75 OF CRAFTMADE'S
LAMPDIVISION REVENUE COMES FROM BOMBAY ANY MISSTEP BY BOMBAY OR PROBLEMS
ON CRAFTMADE'S END WITH DELIVERY OR QUALITY COULD HURT EARNINGS

TO DECREASE ITS DEPENDENCE ON BOMBAY THE COMPANY HAS BEEN COURTING NEW
CUSTOMERS THE HORCHOW COLLECTION A CATALOG COMPANY HAS ALREADY SIGNED ON
AND CRAFTMADE OFFICIALS SAY THEY EXPECT DISCOUNT RETAILER TUESDAY MORNING TO
FOLLOW SOON IN ADDITION CRAFTMADE HAS BEGUN SELLING ITS LAMPS IN THE
LIGHTING SHOWROOMS WHERE ITS CEILING FANS HAVE BEEN A HIT AND IN EARLY 1994
WILL INTRODUCE ITS LAMPS IN FURNITURE STORES

ANOTHER POTENTIAL PITFALL IS THAT CRAFTMADE DEPENDS SOLELY ON ONE TAIWANESE
MANUFACTURER FOR ITS SUPPLY OF FANS THAT EXCLUSIVE LONGTERM RELATIONSHIP
PROVIDES FOR AMPLE CAPACITY FOR INCREASED PRODUCTION BUT A MAJOR PROBLEM OR
DISRUPTION AT THE FACILITY WOULD WREAK HAVOC ON CRAFTMADE'S ABILITY TO MEET
CUSTOMER DEMAND AND WOULD DEVASTATE INCOME

STILL SOME ANALYSTS AND MONEY MANAGERS HOLD HIGH EXPECTATIONS FOR THE
COMPANY FOR THE FISCAL YEAR ENDED JUNE 30 REVENUE LEAPED TO 275 MILLION
FROM 600000 IN 1985 WHEN CRAFTMADE WAS FOUNDED REVENUE SHOULD EXCEED 32
MILLION IN 1994 ANALYSTS ESTIMATE THE COMPANY WILL EARN 66 CENTS A SHARE
THIS YEAR A 38 INCREASE FROM THE 48 CENTS POSTED IN 1993

ALSO IMPRESSING ANALYSTS CRAFTMADE MANAGEMENT'S FRUGAL FISCAL PRACTICES
THE COMPANY'S TOP FOUR OFFICERS COMBINED COMMAND JUST 400000 IN SALARY
JAMES RIDINGS THE COMPANY'S FOUNDER AND CHIEF EXECUTIVE OFFICER IS ON
FORBES'S LIST OF THE 10 LOWESTPAID CHIEF EXECUTIVES AMONG THE COUNTRY'S
BEST SMALL COMPANIES ADMINISTRATIVE EXPENSES HAVE DECREASED TO 198 OF
SALES IN THE MOST RECENT QUARTER FROM 258 IN 1991 DESPITE THE HEADY
GROWTH

BACK IN 1991 IT APPEARED THAT EXECUTIVES MAY NOT HAVE BEEN CIRCUMSPECT IN
ONE DECISION THEIR 450000 PURCHASE OF DMI PRODUCTS A STRUGGLING MAKER OF
TABLE AND FLOOR LAMPS IT TURNED OUT THEY HAD UNDERESTIMATED DMI'S
SHORTCOMINGS WHICH INCLUDED LAX QUALITY CONTROL AND PRODUCT SHIPMENT
DELAYS IN THE FIRST YEAR THE LAMP DIVISION LOST 200000 CAUSING A 70
DROP IN OVERALL EARNINGS

BUT DMI HAD ONE ASSET THAT CRAFTMADE WANTED AND THAT PROVED INVALUABLE ITS
CUSTOMER LIST INCLUDED BOMBAY A RETAILER WITH WHICH CRAFTMADE HADN'T YET
CONNECTED BY WHIPPING DMI INTO SHAPE CRAFTMADE WAS ABLE TO EXPAND LAMP
SALES TO BOMBAY CO TO MORE THAN 2 MILLION IN 1993 FROM LESS THAN 50000
IN 1991 SALES ARE EXPECTED TO DOUBLE IN 1994 MORE IMPORTANT THE LAMP
DIVISION CONTRIBUTED MORE THAN 500000 OR 19 TO CRAFTMADE'S PRETAX
PROFIT IN 1993

THAT PURCHASE  HAS PROVEN TO BE A WORTHY BUY SAYS ALAN D BERNSTEIN
ANALYST AT HAMILTON INVESTMENTS CHICAGO WHO FORESEES A 15 STOCK PRICE
THIS YEAR

UNTIL THE DMI PURCHASE 90 OF CRAFTMADE'S BUSINESS WAS IN CEILING FANS AND
ALTHOUGH LAMP SALES ARE EXPECTED TO PROVIDE THE GREATEST GROWTH OPPORTUNITY
 EXPANDING BY AS MUCH AS 40 A YEAR FANS REMAIN THE COMPANY'S STRENGTH
WITH 75 OF THE COMPANY'S SALES SALES IN THAT DIVISION ARE EXPECTED TO GROW
ABOUT 15 A YEAR

CRAFTMADE SELLS ITS FANS IN ABOUT ONEQUARTER OF THE 5400 LIGHTING
SHOWROOMS NATIONWIDE GIVING IT PLENTY OF GROWTH POTENTIAL THE COMPANY IS
SUPPLYING ABOUT EIGHT NEW SHOWROOMS A MONTH A SHARE

NL INDUSTRIES HOUSTON LAST WEEK TRADED AT 55 TIMES ITS AVERAGE DAILY
VOLUME AND DROPPED 20 TO 450 AFTER STANDARD & POOR'S SAID IT WOULD REMOVE
THE COMPANY FROM THE S&P 500STOCK INDEX NL WHICH WAS REMOVED AFTER THE
CLOSE OF TRADING MONDAY WAS PART OF THE CHEMICAL INDUSTRY GROUP WHERE IT
ACCOUNTED FOR LESS THAN 1 OF THE GROUP'S MARKET VALUE IT WAS REPLACED WITH
EASTMAN CHEMICAL THE EASTMAN KODAK SPINOFF

EZCORP THE AUSTIN PAWNSHOP CHAIN RECENTLY PROFILED IN THIS COLUMN GAINED
97 ON NEARLY DOUBLE ITS AVERAGE DAILY VOLUME ANALYSTS AT KIDDER PEABODY
ON THURSDAY INCLUDED EZCORP AS A TOP SMALLCAP PICK FOR 1994

SHARES OF CELEBRITY A TYLER MAKER OF ARTIFICIAL FLOWERS SHED MORE THAN 18
AFTER THE COMPANY SAID IT EXPECTS TO POST A LOSS FOR ITS SECOND QUARTER
ENDED DEC 31 THE COMPANY ATTRIBUTED THE WEAKNESS LARGELY TO POOR
PERFORMANCE AT ITS MAGISILK UNIT CELEBRITY ALSO HAD CONSIDERABLE
NONRECURRING EXPENSES IN THE QUARTER ASSOCIATED WITH ITS ACQUISITION OF
CLUETT CORP A SUPPLIER OF ARTIFICIAL TREES AND PLANTS FOR THE
YEAREARLIER QUARTER CELEBRITY EARNED 11 MILLION OR 27 CENTS A SHARE

BABBAGE'S THE CONSUMER SOFTWARE RETAILER REVIEWED HERE LAST WEEK SAID
MONDAY THAT DECEMBER SALES AT STORES OPEN AT LEAST A YEAR TUMBLED 15 THE
COMPANY BLAMED THE WEAKNESS ON ANEMIC VIDEOGAME SALES AND SAID IT EXPECTS
GROSS MARGINS IN THE QUARTER TO BE HURT BY VIDEOGAME MARKDOWNS TOTAL SALES
FOR DECEMBER WERE 6429 MILLION UP MARGINALLY FROM 6423 MILLION A YEAR
EARLIER SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR
DEFENDING DMI WSJ JAN 5 1994 9401050181 YY94 MM01 9401190043
940119 VIACOM RAISES PARAMOUNT BID TO 97 BILLION  OFFER IS LESS
THAN QVC'S BUT IT PROTECTS INVESTORS FROM STOCK DOWNTURN  BY
RANDALL SMITH AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL

VIACOM INC REGAINED THE INITIATIVE IN THE HIGHSTAKES BATTLE FOR CONTROL OF
PARAMOUNT COMMUNICATIONS INC BY BOOSTING ITS BID TO ABOUT 97 BILLION OR
ABOUT 8122 A SHARE

THE CURRENT MARKET VALUE OF THE NEW OFFER STILL FELL SHORT OF THE 101
BILLION 8401ASHARE BID BY RIVAL QVC NETWORK INC BUT MANY TAKEOVER
STOCK TRADERS SAID THEY PREFER VIACOM'S BID BECAUSE UNLIKE QVC'S IT
CONTAINS A NEW PROVISION TO PROTECT SHAREHOLDERS AGAINST A DOWNTURN IN THE
PRICE OF VIACOM'S STOCK A MAJOR COMPONENT OF ITS CASHANDSTOCK BID

THE TIMING OF VIACOM'S NEW OFFER WHICH EXPIRES JAN 31 MAY SET UP A TENSE
TWODAY FINALE TO THE BIDDING WAR FOR PARAMOUNT THE PUBLISHING AND
ENTERTAINMENT GIANT MANY TRADERS PREDICT THAT QVC WILL HAVE TO REVISE ITS
BID BY JAN 31 TO MAKE SURE VIACOM DOESN'T GAIN THE 501 OF PARAMOUNT
SHARES NEEDED TO WIN THE CONTEST THEN BOTH SIDES HAVE ONE MORE DAY FEB 1
TO MAKE THEIR BEST AND FINAL OFFER UNDER RULES SET BY PARAMOUNT

THE FOURMONTHLONG BIDDING CONTEST FOR PARAMOUNT HAS PITTED TWO DIVERSE
COALITIONS OF CABLETELEVISION AND TELECOMMUNICATIONS GIANTS IN THE RACE TO
ACQUIRE ONE OF THE LAST REMAINING INDEPENDENT MOVIE STUDIOS AND FILM
LIBRARIES

UNDER THE BIDDING TERMS SET BY PARAMOUNT'S BOARD VIACOM'S NEW OFFER MEANS
BOTH SIDES NOW HAVE TO KEEP THEIR OFFERS OPEN FOR 10 BUSINESS DAYS UNTIL
JAN 31 PEOPLE CLOSE TO QVC SAID THE HOMESHOPPING CONCERN IS EXPLORING
WAYS TO FORCE THE BIDDING CONTEST TO A QUICK CONCLUSION WITHOUT BREACHING
THE TERMS OF THE BIDDING PROCEDURES PEOPLE IN THE QVC CAMP INSIST THEIR
OFFER REMAINS CLEARLY SUPERIOR TO VIACOM'S NEW TERMS AND THAT VIACOM
TECHNICALLY STILL HASN'T INCREASED ITS BID

QVC HAS MAINTAINED THAT IT DOESN'T INTEND TO RAISE ITS BID THOUGH SOME
TRADERS THINK THE NEW OFFER BY VIACOM A CABLETV COMPANY FORCES QVC TOO
TO CONSIDER SOME FORM OF PRICE PROTECTION FOR THE STOCK PORTION OF ITS
CASHANDSTOCK OFFER BARRY DILLER CHIEF EXECUTIVE OFFICER OF QVC SAID IN
A TELEPHONE INTERVIEW YESTERDAY THAT HE WILL FORMALLY RESPOND TODAY BUT
QUICKLY ADDED THAT INVESTORS SHOULDN'T LOOK TO QVC TO RAISE ITS OFFER
TODAY

MANY WALL STREET TRADERS YESTERDAY SAID THEY WOULD DEFINITELY TENDER TO
VIACOM UNLESS QVC CHANGES ITS BID CHARLES LEEDS A PARTNER AT OMEGA
ADVISERS INC WHICH OWNS MORE THAN FOUR MILLION PARAMOUNT SHARES OR 33
OF THE SHARES OUTSTANDING SAID I BELIEVE EVERYONE WOULD TENDER TO
VIACOM RICHARD H SCHNEIDER A TAKEOVER STOCK TRADER AGREED THAT VIACOM'S
OFFER IS A BETTER BID NOT BECAUSE OF THE CURRENT MARKET VALUE BUT BECAUSE
OF THE CERTAINTY THAT HAS BEEN CREATED BY THE PRICE PROTECTION IN VIACOM'S
NEW OFFER

VIACOM'S NEW OFFER COMPRISES 107 A SHARE FOR 501 OF PARAMOUNT SHARES UP
FROM 105 IN CASH IN ITS LAST BID PLUS FOUR DIFFERENT SECURITIES FOR THE
REMAINING 499 OF PARAMOUNT SHARES KNOWN AS THE BACK END

THOSE FOUR SECURITIES ARE 093065 VIACOM NONVOTING CLASS B COMMON SHARE
VIACOM PREFERRED STOCK A THREEYEAR WARRANT TO PURCHASE VIACOM STOCK AT 60
A SHARE AND A CONTINGENT VALUE RIGHT OR CVR WHICH PROVIDES EXTRA
COMPENSATION TO PARAMOUNT HOLDERS IF VIACOM B SHARES TRADE BELOW 48 A SHARE
A YEAR AFTER THE ACQUISITION

VIACOM CAN EXTEND THE CVR TIMETABLE TO PROVIDE FOR THE ADDED VALUE IF VIACOM
TRADES BELOW 51 AFTER TWO YEARS OR 55 AFTER THREE YEARS BUT THE
PROTECTION WON'T COVER ANY DROP BELOW 38 A SHARE PROMPTING SNIPING FROM
QVC BECAUSE VIACOM B CLOSED YESTERDAY AT 3775 A SHARE DOWN 1375 ON
THE AMERICAN STOCK EXCHANGE

THE NEW VIACOM BID SENT PARAMOUNT SHARES SURGING 125 A SHARE TO 80 IN
COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ONE OF THE FEW INSTANCES
SINCE A DELAWARE COURT IN DECEMBER ORDERED A NEW ROUND OF BIDDING THAT A NEW
BID HASN'T DISAPPOINTED INVESTORS IN TERMS OF MARKET VALUE ALONE VIACOM'S
BID WAS HIGHER BY ABOUT 370 A SHARE OR 450 MILLION THAN ITS LAST BID
ANNOUNCED JAN 7

PARAMOUNT'S BOARD PLANS TO MEET EITHER FRIDAY OR MONDAY TO REVIEW THE NEW
VIACOM BID AND THE STATUS OF ITS OWN RECOMMENDATION THAT HOLDERS ACCEPT
QVC'S OFFER WHICH COMPRISES 92 A SHARE IN CASH FOR 501 OF PARAMOUNT
STOCK PLUS 143 SHARES OF QVC COMMON STOCK AND A QVC CONVERTIBLE PREFERRED
STOCK FOR THE REMAINING 499

THE TERMS OF THE NEW VIACOM OFFER SENT TRADERS SCURRYING TO THEIR
MATHEMATICAL MODELS FOR PRICING STOCK OPTIONS TO VALUE THE CVR WHICH
INCORPORATES TWO PARTIALLY OFFSETTING PUT OPTIONS ON VIACOM B SHARES A
PUT IS AN OPTION THAT RISES IN VALUE AS THE UNDERLYING SECURITY FALLS

IT IS ONE OF THE FIRST TIMES THAT THESE KINDS OF DERIVATIVES SECURITIES
WHOSE VALUE DEPENDS ON OTHER SECURITIES AND WHICH HAVE SWEPT WALL STREET IN
THE PAST FIVE YEARS HAVE FIGURED IN SUCH A HIGHPROFILE TAKEOVER BATTLE

AS THE VALUES OF THE TWO BIDS CONTINUE TO FLUCTUATE BOTH VIACOM AND QVC ARE
CONTINUING TO MAKE THEIR CASE TO WALL STREET THAT EACH IS THE BETTER
LONGERTERM MATCH FOR PARAMOUNT VIACOM WHICH ANNOUNCED AN ACQUISITION OF
BLOCKBUSTER ENTERTAINMENT CORP LAST WEEK TO GET THE MONEY TO RAISE THE CASH
PORTION OF ITS PARAMOUNT BID IS ARGUING THAT THE VIDEO RETAILING OPERATIONS
OF BLOCKBUSTER VIACOM'S CABLE AND TV OPERATIONS AND PARAMOUNT'S
ENTERTAINMENT OPERATIONS WILL COMBINED PROVIDE MORE LONGTERM VALUE

QVC MEANWHILE SAYS THAT MR DILLER'S EXPERIENCE AS THE FORMER HEAD OF TWO
HOLLYWOOD STUDIOS AND ARCHITECT OF THE FOX BROADCASTING NETWORK MAKES IT
MORE LIKELY THAT A QVCPARAMOUNT MATCH WILL BECOME A PROGRAMMING POWERHOUSE

INSTITUTIONAL INVESTORS WHO WANT TO KEEP A HAND IN PARAMOUNT'S FUTURE ARE
WEIGHING BOTH ARGUMENTS WITH A DIFFERENCE OF JUST A COUPLE OF DOLLARS A
SHARE BETWEEN THE TWO BIDS ONE BIG PARAMOUNT SHAREHOLDER SAYS YOU HAVE TO
DECIDE WHO IS GOING TO DO A BETTER JOB OF RUNNING THE COMBINED COMPANIES AND
HAVE MORE UPSIDE DOWN THE ROAD WHILE VIACOM CHAIRMAN SUMNER REDSTONE AND
BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA ARE STRONG EXECUTIVES NO ONE IN THE
VIACOMBLOCKBUSTERPARAMOUNT MIX KNOWS HOW TO RUN A MOVIE STUDIO WHICH IS
STILL THE CROWN JEWEL OF PARAMOUNT THE WAY BARRY DILLER DOES THIS HOLDER
SAID

HOWEVER AT THIS POINT IN THE BIDDING WAR MANY LONGTIME INSTITUTIONAL
SHAREHOLDERS HAVE SOLD SOME IF NOT ALL OF THEIR PARAMOUNT STOCK LEAVING
THE CONTEST IN THE HANDS OF ARBITRAGERS OR TAKEOVER STOCK TRADERS THESE
SHORTTERM TRADERS ARE PRIMARILY INTERESTED IN SELLING THEIR PARAMOUNT STOCK
FOR THE BEST FINANCIAL TERMS NOW AND ARE LESS INTERESTED IN PROMISES THAT
COULD BE YEARS AWAY AND SOME OF THOSE TRADERS CONTEND THAT VIACOM'S
PROPOSED COMBINATION WITH BLOCKBUSTER WHICH VIACOM PLANS TO ACQUIRE FOR
STOCK COULD ACT TO STABILIZE VIACOM'S STOCK BY CREATING A GREATER BASE OF
CURRENT REVENUES AND PROFITS

QVC COULD ATTEMPT TO CHALLENGE THE BIDDING PROCEDURES ARGUING THAT VIACOM'S
NEW OFFER DOESN'T REQUIRE QVC TO EXTEND ITS OFFER BY 10 DAYS BECAUSE IT
DOESN'T REPRESENT AN INCREASE OVER THE CURRENT MARKET VALUE OF QVC'S OFFER
QVC SAID LAST WEEK THAT IT WOULDN'T NECESSARILY ABIDE BY AMENDMENTS TO THE
BIDDING RULES ANNOUNCED LAST WEEK BY PARAMOUNT

IN A RECENT EXCHANGE OF LETTERS WITH QVC OUTSIDE COUNSEL MARTIN LIPTON
PARAMOUNT'S OUTSIDE COUNSEL RICHARD BEATTIE OF SIMPSON THACHER & BARTLETT
DISAGREED WITH AN ASSERTION BY MR LIPTON THAT ANY NEW BID BY EITHER SIDE
HAD TO TOP THE OTHER SIDE'S OFFER IN MARKET VALUE IN ORDER TO TRIGGER THE
10DAY EXTENSION

MR BEATTIE WROTE THAT SUCH A PROCEDURE WOULD RAISE DIFFICULT VALUATION
ISSUES WITH RESPECT TO THE BACKEND CONSIDERATION THAT DOES NOT HAVE A
READILY ASCERTAINABLE MARKET VALUE AND DEFINITIONAL ISSUES AS TO THE TERM
HIGHER' INDEED VIACOM'S LATEST BID IS AN EXAMPLE OF HOW TRADERS MIGHT
ACTUALLY PREFER A BID WITH A LOWER CURRENT MARKET VALUE 9401190042 940119
ARMS MAKERS TO PAY 12 MILLION TO SETTLE CHARGES OF COLLUSION

WASHINGTON TWO DEFENSE CONTRACTORS WILL PAY 12 MILLION TO SETTLE CHARGES
THAT THEY CHEATED THE PENTAGON ON A CLUSTERBOMB CONTRACT CLINTON
ADMINISTRATION OFFICIALS SAID

ALLIANT TECHSYSTEMS INC EDINA MINN AND GENCORP INC'S AEROJET ORDNANCE
DIVISION DOWNEY CALIF WILL JOINTLY PAY A 4 MILLION FINE AND WILL TAKE
8 MILLION OFF A 1336 MILLION CLUSTERBOMB CONTRACT UNDER A CONSENT DECREE
BEING FILED IN US DISTRICT COURT IN ROCK ISLAND ILL OFFICIALS OF THE
DEFENSE AND JUSTICE DEPARTMENTS SAID

FEDERAL OFFICIALS HAD CHARGED THE COMPANIES WITH COLLUDING TO ELIMINATE
COMPETITION BETWEEN THEM A MEANS OF KEEPING PRICES HIGH WHEN THE
GOVERNMENT DECIDED THAT ONE SUPPLIER WAS ENOUGH DEFENSE OFFICIALS
PREVIOUSLY PURCHASED THE WEAPONS FROM BOTH COMPANIES EXECUTIVES OF THE
COMPANIES COULDN'T BE REACHED TO COMMENT LAST NIGHT

AT A PENTAGON NEWS CONFERENCE SCHEDULED FOR TODAY CLINTON ADMINISTRATION
OFFICIALS ARE EXPECTED TO EMPHASIZE HOW CLOSELY DEFENSE AND JUSTICE
OFFICIALS WORKED TO SOLVE A PENTAGON PROCUREMENT PROBLEM CONCERNING
ANTITRUST ISSUES THERE HAS BEEN CONCERN EXPRESSED BY SEN HOWARD
METZENBAUM D OHIO CHAIRMAN OF THE SENATE'S ANTITRUST SUBCOMMITTEE AND
OTHERS THAT PENTAGON OFFICIALS MAY FAVOR A MORE LENIENT ANTITRUST ATTITUDE
TOWARD DEFENSE SUPPLIERS DURING A PERIOD OF DEFENSE DEPARTMENT CUTBACKS

THE TWO AGENCIES ALONG WITH THE FEDERAL TRADE COMMISSION INDUSTRY
REPRESENTATIVES AND OUTSIDE ANTITRUST EXPERTS PARTICIPATE IN A DEFENSE
DEPARTMENT ANTITRUST TASK FORCE THAT EXAMINES MATTERS REGARDING THE
CONSOLIDATING DEFENSE INDUSTRY PENTAGON NEEDS AND ANTITRUST LAWS

THIS CASE WHICH THE ARMY REFERRED TO THE JUSTICE DEPARTMENT IS A PERFECT
EXAMPLE OF JUSTICE AND DEFENSE SEEING EYE TO EYE ON ANTITRUST ISSUES SAID
ONE GOVERNMENT OFFICIAL WE'RE NOT AT WAR WITH EACH OTHER 9401190041
940119 KEY INTEREST RATES

ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL
RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JANUARY 5 1994
CYIELDS ADJUSTED FOR CONSTANT MATURITY 9401190040 940119 ORYX ENERGY
SUSPENDS QUARTERLY PAYOUT CUTS CAPITAL SPENDING 20

DALLAS ORYX ENERGY CO SAID IT SUSPENDED ITS QUARTERLY DIVIDEND AND
SLASHED CAPITAL SPENDING THIS YEAR BY 20 BECAUSE OF THE PLUNGE IN CRUDEOIL
PRICES

THE OIL EXPLORATION AND PRODUCTION COMPANY SAID IT WILL CUT SPENDING TO 370
MILLION FROM THE 460 MILLION OF EXPENDITURES LAST YEAR ORYX SAID AT LEAST
70 OF THE OUTLAYS WILL BE EARMARKED FOR DEVELOPMENT RATHER THAN
EXPLORATION PROJECTS

SPENDING MONEY ON THE DEVELOPMENT OF OIL RESERVES BRINGS THE COMPANY
MUCHNEEDED CASH MORE SWIFTLY THAN EXPLORATION ORYX HAS LONGTERM DEBT OF
AROUND 177 BILLION AND A HIGH DEBTTOCAPITALIZATION LEVEL OF AROUND 70
A SPOKESMAN SAID THE COMPANY DOESN'T HAVE ANY PLANS TO CHANGE ITS DEBT
LEVEL THIS YEAR HE SAID IN THE FIRST NINE MONTHS OF 1993 ORYX HAD A NET
LOSS OF 48 MILLION OR 54 CENTS A SHARE ON REVENUE OF 825 MILLION

THE COMPANY HAD BEEN PAYING A QUARTERLY DIVIDEND OF 10 CENTS A SHARE ORYX
SAID THE DIVIDEND SUSPENSION WILL SAVE ABOUT 40 MILLION A YEAR WHICH IT
WILL FUNNEL INTO ITS CAPITALSPENDING PROJECTS

ORYX SHARES FELL 625 CENTS TO CLOSE AT 17625 IN COMPOSITE TRADING ON THE
NEW YORK STOCK EXCHANGE

DESPITE THE REDUCED SPENDING ORYX SAID IT EXPECTS ITS PETROLEUM PRODUCTION
WILL RISE THIS YEAR BECAUSE IT BROUGHT SEVERAL NEW FIELDS ON STREAM IN THE
PAST 10 MONTHS AND ACQUIRED A LARGER INTEREST IN A NORTH SEA FIELD
9401190039 940119 IRANCONTRA PROSECUTOR'S REPORT ALLEGES CABINETLEVEL
COVERUP TO PROTECT REAGAN  BY DAVID ROGERS STAFF REPORTER OF THE
WALL STREET JOURNAL

WASHINGTON A SPECIAL PROSECUTOR'S REPORT ALLEGES THAT MEMBERS OF RONALD
REAGAN'S CABINET PROTECTED THE PRESIDENT AND THEMSELVES BY WITHHOLDING
INFORMATION ON THE IRANCONTRA AFFAIR AND PORTRAYING THE SCANDAL AS ONLY A
ROGUE OPERATION BY WHITE HOUSE AIDES

FORMER ATTORNEY GENERAL EDWIN MEESE IS ACCUSED OF LEADING A DAMAGE CONTROL
EFFORT IN LATE 1986 WHEN THE CONTROVERSY FIRST BROKE AND DONALD REGAN THEN
WHITE HOUSE CHIEF OF STAFF FEARED THE PRESIDENT RISKED IMPEACHMENT AND
WHILE FORMER SECRETARY OF STATE GEORGE SHULTZ IS CREDITED WITH RESISTING THE
ALLEGED COVERUP HE IS ACCUSED OF MISLEADING CONGRESS ABOUT HIS OWN
KNOWLEDGE OF ARMSFORHOSTAGE DEALS WITH IRAN IN THE MID80S

PREPARED BY INDEPENDENT COUNSEL LAWRENCE WALSH THE REPORT CAPS A SEVENYEAR
INVESTIGATION OF THE ARMS SHIPMENTS AND DIVERSION OF PROFITS TO
ANTICOMMUNIST GUERRILLAS IN NICARAGUA THEREBY CIRCUMVENTING A
CONGRESSIONAL BAN ON US AID FOR THE SOCALLED CONTRAS WHILE HIS CRIMINAL
PROSECUTIONS FOCUSED ON THOSE WHO WERE MOST INVOLVED IN THE OPERATION MR
WALSH USED HIS FINAL REPORT NOW TO ASSIGN SOME LARGER RESPONSIBILITY TO
THOSE HIGHEST IN THE REAGAN ADMINISTRATION

MR WALSH SAID HE FOUND NO CRIMINAL VIOLATIONS BY EITHER PRESIDENT REAGAN OR
GEORGE BUSH THEN VICE PRESIDENT

STILL HE SAID REGARDLESS OF CRIMINALITY PRESIDENT REAGAN THE SECRETARY
OF STATE THE SECRETARY OF DEFENSE AND DIRECTOR OF CENTRAL INTELLIGENCE AND
THEIR NECESSARY ASSISTANTS COMMITTED THEMSELVES HOWEVER RELUCTANTLY TO TWO
PROGRAMS CONTRARY TO CONGRESSIONAL POLICY AND CONTRARY TO NATIONAL POLICY
THEY SKIRTED THE LAW SOME OF THEM BROKE THE LAW AND ALMOST ALL OF THEM
TRIED TO COVER UP THE PRESIDENT'S WILLFUL ACTIVITIES

TO MAKE HIS CASE THE PROSECUTOR DREW ON A WEALTH OF PREVIOUSLY UNDISCLOSED
GRAND JURY TESTIMONY AND CONTEMPORANEOUS NOTES KEPT BY GOVERNMENT AIDES BUT
THE REPORT HAS PROVOKED ANGRY DENIALS FROM SCORES OF FORMER OFFICIALS WHOSE
WRITTEN RESPONSES FILL AN ACCOMPANYING 1150PAGE VOLUME TWICE THE SIZE OF
THE ONE SUMMARIZING MR WALSH'S FINDINGS

AT A NEWS CONFERENCE YESTERDAY MR WALSH WAS MORE RESTRAINED SAYING HE HAD
NEVER COME NEAR TO CHARGING EITHER MR REAGAN OR MR BUSH FOR THEIR PARTS IN
THE IRANCONTRA AFFAIR AND WHILE BITTER STILL OVER MR BUSH'S SWEEPING
PARDON OF MANY OF THOSE INVOLVED MR WALSH WAS EVEN KINDLY TOWARD MR
REAGAN

HE MAY HAVE BEEN WILLFUL THE FORMER JUDGE SAID BUT HE AT LEAST  
THOUGHT HE WAS SERVING THE COUNTRY IN WHAT HE DID

MR REAGAN WAS HARSHER YESTERDAY DESCRIBING THE REPORT AS A VEHICLE FOR
BASELESS ACCUSATIONS THAT HE MR WALSH COULD NEVER HAVE PROVEN IN COURT
THE FORMER PRESIDENT'S COMMENTS SET THE TONE FOR A DAY OF SHARP ATTACKS ON
THE PROSECUTOR INCLUDING AN ANGRY BLAST FROM MR MEESE WHO LIKENED THE
FINDINGS TO THE OLD SOVIET MODEL OF JUSTICE YOU'RE GUILTY BECAUSE I SAY
YOU'RE GUILTY

THE CRITICISM OF MR MEESE CENTERS ON HIS ROLE IN THE FIRST DAYS AFTER THE
SCANDAL BROKE IN 1986 IN GRAND JURY TESTIMONY MR REGAN TOLD THE
PROSECUTOR THAT IMPEACHMENT WAS A REAL CONCERN IN THE WHITE HOUSE IN THOSE
FIRST WEEKS AND MR WALSH USES THE NOTES AND GRAND JURY TESTIMONY OF FORMER
STATE DEPARTMENT AND WHITE HOUSE AIDES CHARLES HILL AND PETER WALLISON TO
DESCRIBE DELIBERATIONS OVER WHAT TO SAY ABOUT PRESIDENT REAGAN'S KNOWLEDGE
OF AN EARLY SHIPMENT OF ARMS IN 1985 THAT RAISED QUESTIONS OF VIOLATING ARMS
EXPORT LAWS

MR MEESE WAS LEADING THE FACTFINDING INQUIRY BUT THE REPORT SUGGESTS HE
INSTEAD SIGNALED TO OTHER SENIOR ADVISERS THAT THE OFFICIAL POSITION
SHOULD BE TO HIDE THAT THE PRESIDENT KNEW OF THE 1985 SHIPMENT WHEN MR
SHULTZ SAID THE PRESIDENT HAD KNOWN THERE FOLLOWED AN EXCHANGE WITH MR
MEESE IN WHICH MR HILL APPARENTLY SAW THE ATTORNEY GENERAL AS TRYING TO GET
THE SECRETARY TO BACK OFF HILL DESCRIBED MEESE'S STYLE OF QUESTIONING AS
LEADING' AND SAID MEESE STOOD OVER SHULTZ DURING THE INTERVIEW IN A BACK
ON YOUR HEELS' MANNER THE PROSECUTOR'S REPORT READS

ELSEWHERE IN THE REPORT MR HILL'S NOTES HAUNT MR SHULTZ AS WELL AND SHOW
THE STATE DEPARTMENT KEPT ABREAST OF THE IRAN ARMS DEALS EVEN AS OFFICIALS
DISPARAGINGLY REFERRED TO THE CHIEF OPERATIVE MARINE LT COL OLIVER NORTH
AS POLECAT THOUGH THE SECRETARY DENIES HAVING MISLED CONGRESS THE
PROSECUTOR SAYS MR SHULTZ KNEW SIGNIFICANTLY MORE ABOUT ARMS SHIPMENTS TO
IRAN THAN HIS EARLY TESTIMONY REFLECTS SHULTZ'S TESTIMONY WAS INCORRECT
IF NOT FALSE IN SIGNIFICANT RESPECTS AND MISLEADING IF LITERALLY TRUE IN
OTHERS THE REPORT READS

FORMER DEFENSE SECRETARY CASPAR WEINBERGER WHO ESCAPED PROSECUTION UNDER
MR BUSH'S PARDON IS FLATLY DESCRIBED AS HAVING LIED TO INVESTIGATORS
AND THE REPORT ALLEGES THAT TWO WEINBERGER ASSISTANTS RICHARD ARMITAGE AND
GEN COLIN POWELL WERE LESS THAN FORTHRIGHT IN SOME CASES THE CRITICISM OF
GEN POWELL WHO ACCUSED THE PROSECUTOR IN TURN OF USING INNUENDO TO
IMPUGN HIS CHARACTER IS POLITICALLY SIGNIFICANT SINCE THE FORMER CHAIRMAN
OF THE JOINT CHIEFS OF STAFF COULD WELL RETURN TO THE NATIONAL STAGE BUT
THE MORE DETAILED AND EXTENSIVE EVIDENCE FOCUSES ON MR ARMITAGE WHO WAS
PART OF AN INFORMAL NETWORK OF INTELLIGENCE AND DEFENSE OFFICIALS TAPPED ON
OCCASION BY COL NORTH

MR WALSH'S REPORT MARKS THE END OF HIS DUTIES AS SPECIAL PROSECUTOR AND
ITS RELEASE COMES ALMOST PRECISELY 10 YEARS AFTER TWO EVENTS THAT SHAPED
IRANCONTRA ONE WAS THE SECRET MINING OF NICARAGUAN HARBORS BEGUN IN
JANUARY 1984 AN OPERATION THAT FRACTURED BIPARTISAN SUPPORT FOR THE CONTRA
WAR AND FORCED THE WHITE HOUSE INTO A MONEY CHASE THAT LED TO THE DIVERSION
SCHEME THE MINING OPERATION COINCIDED WITH A TOUGHNESS TOWARD IRAN ON
TERRORISM AND A POLICY OF DISCOURAGING ARMS SHIPMENTS TO TEHRAN WHICH WAS
LINKED SOON AFTER TO THE KIDNAPPING OF THE CIA'S BEIRUT STATION CHIEF IN
MARCH 1984

IN TOTAL MR WALSH ESTIMATES THAT AT LEAST 36 MILLION AND PROBABLY
11 MILLION MORE IN ARMS PROFITS WERE ULTIMATELY DIVERTED INTO THE
CONTRA SUPPLY NETWORK RUN FROM THE WHITE HOUSE THE MONEY MOVED THROUGH AN
ELABORATE CORPORATE SCHEME BASED IN SWITZERLAND AND THE REPORT DETAILS HOW
A NEW YORK BANK OFFICER AND HER HUSBAND AND SON WERE USED TO CIRCUMVENT
CURRENCY LAWS SOMETIMES MAKING CASH DROPS AS LARGE AS 100000 AT CITY
HOTELS

SIMILARLY THE REPORT FLESHES OUT THE ROLE OF FORMER AND CURRENT CENTRAL
INTELLIGENCE AGENCY OPERATIVES IN SUPPORT OF THE NETWORK AND HOW RIVAL
ARMS DEALERS TIED TO THE HONDURAN MILITARY RAN THEIR OWN WEAPONS
SUPERMARKET IN THAT COUNTRY MR WALSH DEVOTES A FULL CHAPTER TO A SENIOR
CIA OFFICER IN CENTRAL AMERICA FROM 1984 TO 1987 WHO HAD CONTACTS WITH THE
SUPPLY NETWORK EVEN WHEN THE CONGRESSIONAL BAN WAS IN EFFECT AND THE
REPORT DETAILS HOW A FORMER CIA OPERATIVE TURNED MERCENARY LUIS POSADA WAS
USED TO DISMANTLE THE AIR OPERATION WHEN IT WAS EXPOSED IN OCTOBER 1986
AIRCRAFT WERE FLOWN TO AGUACATE AIR BASE IN HONDURAS WHERE THE MILITARY
THERE TOOK POSSESSION AND HOUSING WAS CLEANED OUT AND EQUIPMENT DISPOSED OF
IN EL SALVADOR

IN HIS INVESTIGATION MR WALSH UNLIKE ANY INDEPENDENT COUNSEL BEFORE HIM
WAS FORCED TO DEAL WITH NATIONAL SECURITY ISSUES THAT MADE PROSECUTION MORE
DIFFICULT HIS COSTS ARE ESTIMATED AT NEARLY 37 MILLION AND THOUGH HE WON
CONVICTIONS OR GUILTY PLEAS FROM 11 DEFENDANTS FOUR OF THEM WERE AMONG
THOSE SUBSEQUENTLY PARDONED BY MR BUSH TWO OTHERS INCLUDING MR NORTH
WHO IS NOW RUNNING FOR THE SENATE IN VIRGINIA HAD THEIR VERDICTS OVERTURNED
ON APPEAL

MR WALSH DECLINED YESTERDAY TO COMMENT ON MR NORTH'S CANDIDACY A JURY OF
PLAIN ORDINARY PEOPLE RETURNED THEIR VERDICTS OF GUILTY ON THREE FELONY
COUNTS AND THE COURT OF APPEALS REVERSED IT HE SAID AND UNDER THE LAW
THERE IS NO BARRIER TO HIS PURSUING WHATEVER CAREER HE MAY SEEK
9401190038 940119 WHO'S NEWS TWO JOBS AT CHAMBERS DEVELOPMENT GIVEN 
TO ALEXANDER RANGOS

PITTSBURGH CHAMBERS DEVELOPMENT CO NAMED ALEXANDER W RANGOS AS
PRESIDENT AND CHIEF OPERATING OFFICER

MR RANGOS 33 YEARS OLD WAS FORMERLY EXECUTIVE VICE PRESIDENT OF
OPERATIONS AND CORPORATE DEVELOPMENT OF THIS WASTEMANAGEMENT CONCERN HE
SUCCEEDS JOHN G RANGOS SR AS PRESIDENT THE CHIEF OPERATING OFFICER'S POST
IS NEW THE ELDER MR RANGOS 64 CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE

THE COMPANY ALSO SAID JOHN G RANGOS JR 35 WAS NAMED VICE CHAIRMAN OF
ADMINISTRATION AND TECHNOLOGY A NEW POSITION HE FORMERLY WAS EXECUTIVE
VICE PRESIDENT OF ADMINISTRATION AND TECHNOLOGY

CHAMBERS ALSO ANNOUNCED SEVERAL OTHER CHANGES IN AN EFFORT TO STREAMLINE
MANAGEMENT AND PUT A GREATER EMPHASIS ON SALES AND MARKETING

PETER V MORSE 46 WAS NAMED SENIOR VICE PRESIDENT OF MARKETING AND
DEVELOPMENT A NEW POSITION HE FORMERLY WAS VICE PRESIDENT OF OPERATIONS
JACK D WEERTMAN 42 WAS TAPPED AS SENIOR VICE PRESIDENT OF OPERATIONS A
NEW POSITION HE PREVIOUSLY WAS VICE PRESIDENT OF THE COMPANY'S SOUTHERN
REGION AND WILLIAM RODGERS JR 43 WAS NAMED A SENIOR VICE PRESIDENT HE
CONTINUES AS CHIEF FINANCIAL OFFICER

IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE CHAMBERS
CLASS A SHARES CLOSED AT 525 UP 125 CENTS AND ITS CLASS B SHARES CLOSED
AT 5 DOWN 125 CENTS 9401190037 940119 MARKETING & MEDIA 
ADVERTISING STRIDE RITE PUTS KEDS ACCOUNT IN REVIEW AS SALES START TO
SLIDE  BY KEVIN GOLDMAN

KEDS THE SNEAKER THAT MADE A COMEBACK WITH BABY BOOMERS IN RECENT YEARS
STUMBLED LAST YEAR AND ITS ADVERTISING ACCOUNT HAS BEEN PLACED IN REVIEW

KEDS HAD SALES IN 1993 OF 360 MILLION DOWN 27 ACCORDING TO SPORTING
GOODS INTELLIGENCE NEWSLETTER IN GLEN MILLS PA LAST YEAR'S DECLINE
REVERSED A TREND OF INCREASED SALES FOR KEDS IN 1989 KEDS HAD SALES OF
230 MILLION WHICH INCREASED EACH YEAR TOPPING OFF IN 1992 WITH 370

THE INCUMBENT AGENCY LEONARD MONAHAN LUBARS & KELLY SAYS IT WAS INVITED TO
PARTICIPATE BUT DECLINED

THE AGENCY CREATED ADS WITH THE SLOGAN KEDS THEY FEEL GOOD THAT
FEATURED HOMESPUN IMAGES OF A MAN TRAINING A PUPPY A THIRTYSOMETHING MOTHER
BOUNCING AN INFANT ON HER KNEE AND A WOMAN TOSSING A PAIR OF KEDS INTO A
WASHING MACHINE THE ACTRESS DEMI MOORE SUPPLIED THE VOICEOVER FOR ALL THE
KEDS SPOTS

THE 8 MILLION KEDS ACCOUNT SWITCH IS ANOTHER BLOW FOR THE PROVIDENCE RI
AGENCY WHICH IN THE PAST YEAR LOST TWO MAJOR CLIENTS AMERICAN TOURISTER
AND SPALDING SPORTS WORLDWIDE WITH COMBINED BILLINGS OF ABOUT 10 MILLION
LEONARD MONAHAN HASN'T FULLY REPLACED THE LOST BUSINESS WINNING ONLY ONE
NEW ACCOUNT IN A YEAR SYLVANIA LIGHTING PRODUCTS WORTH ONLY AS MUCH AS 6
MILLION

IN ADDITION TO THE ACCOUNT DEFECTIONS LEONARD MONAHAN HAS BEEN PLAGUED BY A
SPATE OF RECENT EXECUTIVE DEFECTIONS JUST LAST WEEK FRAN KELLY CHIEF
OPERATING OFFICER AND DIRECTOR OF CLIENT SERVICES LEFT TO JOIN ARNOLD
FORTUNA LAWNER & CABOT IN BOSTON AS EXECUTIVE VICE PRESIDENT AND CHIEF
MARKETING OFFICER IN SEPTEMBER DAVID LUBARS RESIGNED AS EXECUTIVE VICE
PRESIDENT TO JOIN OMNICOM GROUP'S BBDO WORLDWIDE IN LOS ANGELES AND LAST
MARCH TOM MONAHAN A FOUNDING PARTNER RESIGNED BUT RETURNED LAST FALL AS
ACTING CREATIVE DIRECTOR

WE WERE ON A ROLL BUT HIT A STREAK OF BAD LUCK SAYS BRUCE LEONARD THE
AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE HAVEN'T WON ANYTHING NEW
RECENTLY BUT WE HAVE A LOT OF POSITIVE ENERGY RIGHT NOW

MR LEONARD SAYS HE HAS NO APOLOGIES FOR THE AGENCY'S WORK OVER THE PAST
FIVEANDAHALF YEARS FOR KEDS A UNIT OF STRIDE RITE IN CAMBRIDGE MASS

WE MADE A BUSINESS DECISION THAT WE WOULD RATHER WORK TO REPLACE THE
BUSINESS THAN TO PUT OUR CREATIVE AND COLLECTIVE ENERGIES IN TO SAVE IT
SAYS MR LEONARD

STRIDE RITE WASN'T THE EASIEST CLIENT MR LEONARD NOTES THAT IT HAS HAD
FOUR CHAIRMEN SINCE THE AGENCY WON THE BUSINESS LAST MONTH ROBERT SIEGEL
WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SUCCEEDING ERVIN R
SHAMES WHO IS NOW HEADING UP BORDEN

CALLS TO STRIDE RITE WEREN'T RETURNED

ACCORDING TO SPORTING GOODS INTELLIGENCE KEDS IS RANKED NO 3 BEHIND NIKE
AND REEBOK IN SALES OF US BRAND ATHLETIC FOOTWEAR NO 1 NIKE GREW 78 TO
19 BILLION IN 1993 BUT REEBOK DECLINED 105 TO 13 BILLION SALES FOR
THE ENTIRE CATEGORY LAST YEAR GREW 33 TO 62 BILLION

KEDS APPEALS TO THE FEMALE MARKET AND A CUSTOMER WHO IS A LITTLE OLDER
SAYS JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE AND THEY'RE
CHEAP KEDS IS FOR A WOMAN WHO WANTS A COMFORTABLE SNEAKER AND LITTLE
CACHET

HOWEVER MR HORAN ADDS KEDS TRIPPED UP BECAUSE THEY MILKED THE BASIC
BRAND AND HAD NO PRODUCT INNOVATION THERE ARE ONLY SO MANY TIMES YOU CAN GO
BACK TO THE WELL ON THE SAME SHOE

STRIDE RITE ITSELF IS EXPERIENCING SOME TOUGH FINANCIAL TIMES IT IS
EXPECTED TO REPORT EARNINGS OF 20 CENTS A SHARE DOWN 24 FROM 26 CENTS A
SHARE A YEAR AGO ACCORDING TO AN ESTIMATE FROM JOSIE ESQUIVEL AN ANALYST
WITH LEHMAN BROTHERS

IT IS DOUBTFUL THAT GREY ADVERTISING WHICH IS THE AGENCY FOR STRIDE RITE'S
CHILDREN'S SHOE DIVISION WILL BENEFIT FROM THE KEDS REVIEW INDUSTRY
OFFICIALS SAY STRIDE RITE WANTS TWO AGENCIES TO WORK ON ITS BUSINESS

MR LEONARD SAYS NO TEARS WILL BE SHED FOR THE KEDS LOSS WE'RE OVER IT
HE SAYS AND THE AGENCY WILL CONTINUE TO SERVE THE CLIENT UNTIL KEDS SELECTS
A NEW AGENCY WE CAN POINT TO A LOT OF TERRIFIC WORK HE SAYS

MR HORAN SAYS HE DOESN'T BELIEVE THE ADVERTISING IS TO BLAME FOR KEDS'
SALES DECLINE HE COMPARES THE KEDS ACCOUNT SWITCH TO REEBOK INTERNATIONAL
LTD'S FIRING CHIAT/DAY LAST YEAR IT ISN'T THE AD AGENCY'S FAULT THAT
SALES ARE OFF HE SAYS THEY'RE JUST THE ONES THAT GET BLAMED

ROBERT E KENNEDY THE 52YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
NORTH AMERICAN OPERATIONS AT SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI
ADVERTISING IS RETIRING FROM THE AGENCY AFTER JUST A YEAR ON THE JOB

ED WAX SAATCHI'S 57YEAROLD WORLDWIDE CHAIRMAN AND CHIEF EXECUTIVE IS
ASSUMING MR KENNEDY'S DUTIES FOR THE FORESEEABLE FUTURE THE AGENCY SAID

THE NEWS SURPRISED SAATCHI INSIDERS AND OBSERVERS MR KENNEDY ROSE THROUGH
THE AGENCY'S FINANCIAL RANKS AND WAS CONSIDERED THE COMMERCIAL CONSCIENCE
AT THE DEBTLADEN AGENCY EXECUTIVES SAID HE OVERSAW MUCH OF ITS MASSIVE
RETRENCHING IN RECENT YEARS BUT MR KENNEDY DIDN'T HAVE CLOSE TIES WITH ANY
OF SAATCHI'S CLIENTS LIMITING HIS POWER BASE INSIDE THE AGENCY EXECUTIVES
SAID

WE'VE DOWNSIZED RESTRUCTURED AND STREAMLINED THAT'S WHAT I'VE DONE MR
KENNEDY SAID NOW IT'S TIME FOR THE PEOPLE WHO WRITE THE ADS AND SELL THEM
TO DEVELOP MORE REVENUE IT WAS ALL VERY AMICABLE

MR KENNEDY JOINED THE ADVERTISING BUSINESS AS A MESSENGER AT J WALTER
THOMPSON WHEN HE WAS 15

BEFORE BEING NAMED NORTH AMERICAN CHAIRMAN MR KENNEDY HAD BEEN CHIEF
FINANCIAL OFFICER AND THEN PRESIDENT AND CHIEF OPERATING OFFICER AT SAATCHI
& SAATCHI WORLDWIDE HIS RETIREMENT IS EFFECTIVE MARCH 1

FRANK ASSUMMA PRESIDENT OF THE NEW YORK OFFICE OF BACKER SPIELVOGEL BATES
WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF US OPERATIONS AND
ANDREW CRACKNELL WORLDWIDE EXECUTIVE CREATIVE DIRECTOR AND VICE CHAIRMAN
AT THE AGENCY'S UK UNIT WAS NAMED TO THE ADDITIONAL POST OF US VICE
CHAIRMAN

MR ASSUMMA 40 YEARS OLD SUCCEEDS MICHAEL BUNGEY AS US CHIEF EXECUTIVE
MR BUNGEY WHO RETAINS THE TITLE OF US CHAIRMAN REMAINS WORLDWIDE CHIEF
EXECUTIVE AND HEIR TO AGENCY CHAIRMAN AND COFOUNDER CARL SPIELVOGEL THE
APPOINTMENT OF MR CRACKNELL 47 WAS EXPECTED SINCE NOVEMBER WHEN HE WAS
NAMED CREATIVE HEIR TO AGENCY COFOUNDER BILL BACKER

BURGER KING BOSTON AGENCY HILL HOLLIDAY CONNORS COSMOPULOS SAID IT HAS
PULLED OUT OF THE REVIEW FOR BURGER KING'S ESTIMATED 100 MILLION PLUS US
ADVERTISING ACCOUNT THE RESOURCES NEEDED TO HELP BURGER KING ARE SO
ENORMOUS THAT WE SIMPLY DON'T WANT TO PUT OUR CURRENT CLIENT RELATIONSHIPS
IN JEOPARDY THE AGENCY SAID IN A STATEMENT OFFICIALS AT BURGER KING A
SUBSIDIARY OF GRAND METROPOLITAN PLC COULDN'T BE REACHED THE DEPARTURE
LEAVES FIVE OTHER AGENCIES VYING FOR THE ACCOUNT

ACCOUNT PROCTER & GAMBLE'S DECISION TO FOLD ITS CLARION COSMETICS LINE IS
BAD NEWS FOR LEO BURNETT CO CHICAGO WHICH CREATED THE ADVERTISING THE
ACCOUNT BILLED 9 MILLION IN THE FIRST 10 MONTHS OF 1993 ACCORDING TO
COMPETITIVE MEDIA REPORTING  AIRSHIP INTERNATIONAL LTD SAID IT TAPPED
D'ARCY MASIUS BENTON & BOWLES NEW YORK TO CREATE ADVERTISING AND SIGN UP
NEW ADVERTISERS FOR ITS FLEET OF BLIMPS 9401190036 940119 WHAT'S NEWS 
 WORLDWIDE

DAMAGE ESTIMATES ROSE FROM THE CALIFORNIA QUAKE AND THE DEATH TOLL HIT 34

AFTERSHOCKS RUMBLED THROUGH THE LOS ANGELES AREA HAMPERING EFFORTS TO CLEAR
RUBBLE FROM MONDAY'S EARTHQUAKE THAT ALSO LEFT MORE THAN 2600 INJURED AND
20000 HOMELESS UP TO 120000 REMAINED WITHOUT POWER OR WATER AND
OFFICIALS CLOSED PORTIONS OF 11 MAJOR HIGHWAYS AS EMERGENCY TEAMS STUDIED
THE WEAKENED STATE OF ROADS AND BUILDINGS INSURANCE EXPERTS SHARPLY
ESCALATED THEIR DAMAGE ESTIMATES FROM THE 1 BILLION SUGGESTED A DAY BEFORE

HOUSING SECRETARY CISNEROS AND TRANSPORTATION SECRETARY PENA FLEW TO THE
CITY AND PRESIDENT CLINTON WILL GO THERE TODAY TO INSPECT THE DAMAGE

INMAN WITHDREW HIS NAME FROM CONSIDERATION FOR DEFENSE SECRETARY

RETIRED ADM BOBBY INMAN ATTRIBUTED HIS SURPRISE MOVE TO A NEW MCCARTHYISM
IN WASHINGTON SAYING HE WAS DISTRESSED AND DISTRACTED BY ATTACKS ON HIS
CHARACTER AND REPUTATION THE ANNOUNCEMENT BY THE FORMER DEPUTY CIA
DIRECTOR COMING JUST ONE WEEK BEFORE HE WAS EXPECTED TO BE CONFIRMED WAS
AN EMBARRASSING SETBACK FOR CLINTON THE PRESIDENT ACCEPTED INMAN'S
WITHDRAWAL AND BEGAN A NEW SEARCH FOR ASPIN'S SUCCESSOR

AMONG PEOPLE LISTED AS POTENTIAL NOMINEES ARE DEPUTY DEFENSE SECRETARY
PERRY FORMER NEW HAMPSHIRE SEN RUDMAN AND CIA DIRECTOR WOOLSEY

A PROSECUTOR ALLEGED THERE WAS A COVERUP IN THE 1980S IRANCONTRA AFFAIR

INDEPENDENT COUNSEL WALSH CONCLUDED THAT MEMBERS OF REAGAN'S CABINET
PROTECTED THE PRESIDENT AND THEMSELVES BY WITHHOLDING DATA ON
ARMSFORHOSTAGES DEALS WITH IRAN AND PORTRAYING THE AFFAIR AS A ROGUE
OPERATION BY WHITE HOUSE AIDES FORMER ATTORNEY GENERAL MEESE IS ACCUSED OF
LEADING A DAMAGE CONTROL EFFORT WHEN THE CONTROVERSY BROKE IN 1986 WALSH
FOUND NO CRIMINAL VIOLATIONS BY REAGAN OR THENVICE PRESIDENT BUSH

WALSH'S REPORT HAS PROVOKED ANGRY DENIALS FROM SCORES OF FORMER OFFICIALS
WHOSE WRITTEN RESPONSES FILL AN ACCOMPANYING 1150PAGE VOLUME

RUSSIA'S FINANCE MINISTER TURNED DOWN AN OFFER TO REMAIN IN YELTSIN'S
CABINET FYODOROV ANNOUNCED HIS RESIGNATION TWO DAYS AFTER REFORM CZAR
GAIDAR QUIT SEPARATELY FOREIGN MINISTER KOZYREV SAID RUSSIA NEEDS TO
MAINTAIN A MILITARY PRESENCE IN FORMER SOVIET REPUBLICS TO PROTECT RUSSIAN
INTERESTS

SYRIA'S FOREIGN MINISTER CONDEMNED ISRAEL'S COOL RESPONSE TO THE USSYRIAN
SUMMIT AND SAID ISRAELIS HAD NO RIGHT TO HOLD A REFERENDUM CONCERNING THE
FUTURE OF THE OCCUPIED GOLAN HEIGHTS MEANWHILE A NUMBER OF ISRAELI
POLITICIANS ALSO OBJECTED TO PRIME MINISTER RABIN'S PLANS FOR THE VOTE ON A
POSSIBLE LANDFORPEACE SWAP WITH SYRIA

SUNSCREENS PREVENT SUNBURN BUT MAY NOT PROVIDE PROTECTION AGAINST THE
POTENTIALLY DEADLY MELANOMA SKIN CANCER RESEARCHERS SAID THAT MICE EXPOSED
TO ULTRAVIOLET RAYS DEVELOPED MELANOMA TUMORS DESPITE THE USE OF SUNSCREENS
WHICH ARE ACKNOWLEDGED TO BE EFFECTIVE IN PREVENTING NONMELANOMA CANCERS

THE SUPREME COURT REJECTED AN ATTEMPT TO LET STATES LIMIT THE BENEFITS PAID
TO SOME WELFARE RECIPIENTS BASED ON HOW LONG THEY HAVE BEEN RESIDENTS THE
HIGH COURT WITHOUT COMMENT LET STAND RULINGS THAT HAD STRUCK DOWN A
MINNESOTA LAW AS A VIOLATION OF NEW RESIDENTS' EQUALPROTECTION RIGHTS AS
WELL AS THEIR RIGHT TO TRAVEL

FRANCE WILL REPLACE THE COMMANDER OF UN PEACEKEEPING FORCES IN THE FORMER
YUGOSLAVIA AT THE REQUEST OF SECRETARYGENERAL BOUTROSGHALI THE FRENCH
DEFENSE MINISTRY SAID GEN JEAN COT EARLIER THIS MONTH PUBLICLY CRITICIZED
THE UN CHIEF'S REFUSAL TO PERMIT HIM TO ORDER AIR STRIKES THE UN MUST
DEPLOY MORE SOLDIERS IN FUTURE INTERVENTIONS PLACE THEM ALL UNDER UN
CONTROL AND KEEP THE TROOPS IN A COUNTRY EVEN IF SOME GET KILLED THE
OUTGOING UN COMMANDER IN SOMALIA SAID BECAUSE IT FAILED TO DO THOSE
THINGS IN SOMALIA THE UN MAY NEVER BE ABLE TO LEAVE THAT COUNTRY WITH A
LASTING PEACE CEVIK BIR OF TURKEY SAID

REHNQUIST CLEARED THE WAY FOR SHANNON FAULKNER TO BECOME THE FIRST WOMAN TO
ATTEND DAY CLASSES WITH CADETS AT THE CITADEL AN ALLMALE MILITARY ACADEMY
IN CHARLESTON SC THE SUPREME COURT CHIEF JUSTICE SET ASIDE A TEMPORARY
STAY HE HAD IMPOSED LAST WEEK 9401190035 940119 INMAN PULLS OUT AS THE
NOMINEE FOR DEFENSE JOB  CANDIDATE CITES ADVERSITY IN WASHINGTON
ATTACKS BY COLUMNIST SAFIRE  BY THOMAS E RICKS AND MICHAEL K
FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON BOBBY INMAN WITHDREW HIS NOMINATION TO BE DEFENSE SECRETARY
ATTRIBUTING THE SURPRISE MOVE TO HIS DISMAY AT WASHINGTON'S ADVERSARIAL
WAYS SPECIFICALLY A NEW MCCARTHYISM THAT HE CLAIMED WAS AIMED AT HIM BY
NEW YORK TIMES COLUMNIST WILLIAM SAFIRE

THE EXTRAORDINARY WITHDRAWAL BY THE RETIRED ADMIRAL AND INTELLIGENCE CHIEF
 JUST ONE WEEK BEFORE HE WAS EXPECTED TO BE CONFIRMED AND TAKE OFFICE 
IS AN EMBARRASSING SETBACK TO THE CLINTON ADMINISTRATION IN THE WAKE OF MR
INMAN'S UNUSUAL PERFORMANCE AT A NEWS CONFERENCE ANNOUNCING HIS WITHDRAWAL
SOME WHITE HOUSE OFFICIALS EXPRESSED RELIEF THAT HE WAS PULLING OUT

BUT SENIOR ADMINISTRATION OFFICIALS LAST NIGHT SAID THAT WHILE PRESIDENT
CLINTON WAS DISAPPOINTED HE BELIEVED MR INMAN DESERVED RESPECT FOR HIS
30 YEARS OF SERVICE THE PRESIDENT SPECIFICALLY TOLD HIS STAFF NOT TO TAKE
SHOTS AT MR INMAN

WHILE MANY OBSERVERS WERE STUNNED BY MR INMAN'S CHARGES AT THE NEWS
CONFERENCE THE WHITE HOUSE WASN'T OVER THE LAST 12 DAYS HE HAD TOLD THE
WHITE HOUSE OF THOSE CHARGES AS WELL AS DETAILS ABOUT A RUMOR CAMPAIGN
AGAINST HIM INCLUDING ATTACKS ON HIS PERSONAL LIFE DEALING WITH THE
ACCUSATIONS AIDES SAID TOOK A HEAVY TOLL ON MR INMAN'S FAMILY AND WAS A
MAJOR FACTOR IN HIS WITHDRAWAL

IN A TELEPHONE INTERVIEW LAST NIGHT MR INMAN SAID HE DOESN'T HAVE ANY
SKELETONS IN HIS CLOSET AND EXPRESSED FRUSTRATION THAT REPORTERS ASKED
ABOUT SUCH MATTERS RATHER THAN FOCUS ON THE MESSAGE HE GAVE AT HIS NEWS
CONFERENCE ABOUT THE CORROSIVE EFFECTS OF THE ADVERSARIAL MEDIA

A NEW PICK COULD EMERGE SOON BECAUSE THE WHITE HOUSE HAS HAD ALMOST TWO
WEEKS TO REOPEN ITS SEARCH FOR A SUCCESSOR TO MR ASPIN MR INMAN HAD BEEN
CHOSEN FROM A LIST OF ABOUT 12 CANDIDATES AND CLINTON AIDES ARE GOING OVER
THAT LIST ACCORDING TO A SENIOR ADMINISTRATION OFFICIAL THE WHITE HOUSE
HE SAID EXPECTS TO MOVE IN AN ORDERLY AND TIMELY MANNER IT WAS EQUALLY
POSSIBLE SAID A SECOND OFFICIAL THAT MR CLINTON WOULD LOOK BEYOND THE
ORIGINAL LIST

THE WHITE HOUSE HAS ASKED DEFENSE SECRETARY LES ASPIN WHO HAD PLANNED TO
STEP DOWN WITHIN A FEW DAYS TO STAY ON UNTIL A NEW NOMINEE IS FOUND
PENTAGON AIDES SAID AND THE POSSIBILITY WAS RAISED LAST NIGHT THAT HE COULD
EVEN BE ASKED TO KEEP HIS JOB

MR INMAN SAID IN AN INTERVIEW YESTERDAY THAT HE HAD TOLD A WHITE HOUSE AIDE
ON JAN 6 LESS THAN A MONTH AFTER HE WAS NOMINATED THAT HE INTENDED TO
WITHDRAW FROM CONSIDERATION BUT HE DELAYED DELIVERING A FORMAL LETTER OF
WITHDRAWAL HE SAID BECAUSE PRESIDENT CLINTON FIRST HAD TO DEAL WITH THE
FUNERAL OF HIS MOTHER AND THEN A TRIP TO EUROPE

THE PEOPLE MENTIONED MOST FREQUENTLY YESTERDAY AS POTENTIAL NOMINEES ARE
DEPUTY DEFENSE SECRETARY WILLIAM PERRY AND FORMER NEW HAMPSHIRE SEN WARREN
RUDMAN JAMES WOOLSEY THE DIRECTOR OF CENTRAL INTELLIGENCE ALSO HAS BEEN
MENTIONED

MR PERRY IS A MILITARY TECHNOLOGIST AND MATHEMATICIAN WHO HAS WON RESPECT
FOR HIS MANAGEMENT OF THE PENTAGON OVER THE PAST YEAR BUT WHOM SOME
DESCRIBE AS TOO LOWKEY TO LEAD THE DEFENSE ESTABLISHMENT HE COULDN'T BE
REACHED TO COMMENT YESTERDAY

MR RUDMAN IS A KOREAN WAR VETERAN WHO SERVED ON THE SENATE DEFENSE
APPROPRIATIONS SUBCOMMITTEE HE CURRENTLY IS COCHAIRMAN OF THE CONCORD
COALITION AN ANTIDEFICIT GROUP THAT ESPOUSES MUCH THAT PRESIDENT CLINTON
OPPOSES SUCH AS CUTTING FEDERAL BENEFITS FOR THE MIDDLE CLASS MR RUDMAN
A REPUBLICAN HIMSELF DIDN'T DISCLAIM AN INTEREST IN THE PENTAGON JOB HE
SAID THE PRESIDENT HASN'T CONTACTED HIM BUT ALSO SAID I'M NOT GOING TO
ADVERTISE IN THE PAGES OF THE WALL STREET JOURNAL

BUT SENIOR ADMINISTRATION OFFICIALS SAID MESSRS RUDMAN AND WOOLSEY WEREN'T
LIKELY TO BE CHOSEN ACCORDING TO ONE AIDE THE PRESIDENT IS SEEKING A
STAR FOR THE POST

MANY PEOPLE AT THE PENTAGON AND ON CAPITOL HILL WERE TOO STRUCK BY MR
INMAN'S UNUSUAL HOURLONG NEWS CONFERENCE IN AUSTIN TEXAS TO FOCUS ON WHO
MIGHT BE PICKED AS THE NEXT PENTAGON CHIEF WHILE MR INMAN OBSERVED THAT HE
HAS RECEIVED GENERALLY FAVORABLE NEWS COVERAGE HE DWELLED AT LENGTH ON
CRITICISMS OF HIM THAT HAVE APPEARED IN THE MEDIA SOME OF THEM SEEMINGLY
MINOR SEN TRENT LOTT R MISS CALLED MR INMAN'S NEWS CONFERENCE WILD
AND BIZARRE

MR INMAN SAID HE DECIDED TO WITHDRAW EARLY THIS MONTH AFTER BEING TOLD THAT
MR SAFIRE THE NEW YORK TIMES COLUMNIST WAS CONSPIRING AGAINST HIM WITH
SENATE MINORITY LEADER ROBERT DOLE OF KANSAS THERE WERE REPORTS WHICH
BOTH WILL PROBABLY DENY THAT THERE WAS A TRADE BETWEEN MR SAFIRE AND SEN
DOLE THAT IF SEN DOLE WOULD TURN UP THE HEAT ON MY NOMINATION THEN SAFIRE
WOULD TURN UP THE HEAT ON WHITEWATER DEVELOPMENT MR INMAN ALLEGED
REFERRING TO THE ARKANSAS LAND TRANSACTION THAT LATELY HAS PROVED NETTLESOME
TO THE CLINTON WHITE HOUSE

WHEN ASKED ABOUT MR INMAN'S CHARGES MR SAFIRE REACHED AT HIS SUBURBAN
WASHINGTON HOME LAST NIGHT SAID READ MY COLUMN ON THURSDAY I'M NOT
GOING TO SCOOP MYSELF HE REPEATEDLY DECLINED TO ELABORATE MR SAFIRE A
VETERAN OF THE NIXON ADMINISTRATION IS A GENERALLY CONSERVATIVE COLUMNIST
FOR THE NEW YORK TIMES'S GENERALLY LIBERAL OPED PAGE

THE TIMES RELEASED A STATEMENT FROM ITS PUBLISHER ARTHUR SULZBERGER JR
THAT DIDN'T DIRECTLY ADDRESS MR INMAN'S CHARGE BUT DEFENDED MR SAFIRE AS
A MAN OF GREAT DECENCY HONOR AND INTEGRITY THE STATEMENT ALSO QUOTED A
TIMES SPOKESWOMAN NANCY NIELSEN AS SAYING THAT MR SAFIRE'S OPINIONS ARE
HIS OWN BUT THAT AS AN EMPLOYEE OF THE TIMES HE IS EXPECTED TO WORK
WITHIN THE STANDARDS OF THE TIMES AND WE ARE CONFIDENT HE HAS DONE SO

AN ANGRY SEN DOLE WAS LESS RESTRAINED SAYING OF MR INMAN THAT HE'S
PROBABLY NOT QUALIFIED TO BE SECRETARY OF DEFENSE IF HE HAS FANTASIES LIKE
THAT

THE BAD BLOOD BETWEEN MR INMAN AND MR SAFIRE DATES BACK AT LEAST TO 1981
WHEN MR INMAN WAS DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY MR
SAFIRE WAS CLOSE TO WILLIAM CASEY THE CIA DIRECTOR AND MANAGED MR CASEY'S
UNSUCCESSFUL CAMPAIGN FOR CONGRESS IN 1966 MR INMAN IN HIS NEWS
CONFERENCE YESTERDAY RELATED THE STORY OF HOW AFTER THE ISRAELIS BOMBED A
NEARLY OPERATIONAL NUCLEAR REACTOR IN IRAQ HE CURTAILED ISRAELI ACCESS TO
PHOTOGRAPHS TAKEN BY US RECONNAISANCE SATELLITES THE DECISION OUTRAGED
THE ISRAELIS

CASEY HAD BEEN ON A TRIP DOWN TO AUSTRALIA AND NEW ZEALAND MR INMAN SAID
YESTERDAY WHEN HE CAME BACK HIS FAVORITE JOURNALIST AND FORMER CAMPAIGN
MANAGER MR SAFIRE COMPLAINED TO HIM ABOUT THE DECISION

MR INMAN WAS PARTICULARLY PAINED BY A COLUMN BY MR SAFIRE LAST DEC 23
THAT LABELED MR INMAN CLINTON'S WORST CABINET NOMINATION AND ACCUSED THE
NOMINEE OF BEING MANIPULATIVE AND DECEPTIVE MR SAFIRE ALSO WROTE THAT
WHILE AT THE CIA MR INMAN BECAME CONVINCED THAT BILL CASEY AND I WERE
CONSPIRING TO BLOCK HIS ADVANCEMENT

IN THAT COLUMN MR SAFIRE ALSO CRITICIZED MR INMAN'S FAILURE TO PAY TAXES
FOR EMPLOYING A PARTTIME HOUSEKEEPER CALLING HIM A CHEAT MR INMAN SAID
ON DEC 20 THAT HE HAD SENT A 6000 CHECK TO THE INTERNAL REVENUE SERVICE
TO COVER THE BACK TAXES

I WAS FRANKLY VERY SURPRISED AT THE DEPTH OF ANIMOSITY IN THAT INITIAL
COLUMN MR INMAN SAID IN A TELEPHONE INTERVIEW YESTERDAY

DISPLAYING SOME ANIMUS OF HIS OWN HE REPEATED AN ACCUSATION HE MADE AT THE
NEWS CONFERENCE THAT MR SAFIRE IS A MAN WHO HAS HIDDEN HIS OWN PLAGIARISM
BY AN OUTOFCOURT SETTLEMENT WITH SEALED DOCUMENTS MR INMAN DIDN'T
ELABORATE ON HIS ACCUSATION AND THE NEW YORK TIMES STATEMENT DIDN'T ADDRESS
THE ISSUE

WASHINGTON WAS INUNDATED WITH RUMORS YESTERDAY THAT MR INMAN WAS
WITHDRAWING OUT OF FEAR THAT OLD ENEMIES PERHAPS COVERT OPERATORS AT THE
CIA WOULD ATTACK HIM WITH DEROGATORY INFORMATION PERHAPS FUNNELING IT TO
MR SAFIRE BUT MR INMAN DISMISSED THAT THOUGHT SAYING I DON'T KNOW THAT
ANYBODY THERE AT THE AGENCY STILL HAS IT IN FOR ME

MR INMAN ALSO REJECTED SUGGESTIONS THAT OLD ADVERSARIES IN ISRAEL HAD
UNDERMINED HIM NOTING THAT HE HAD LONG SHARED INTELLIGENCE DATA WITH THE
ISRAELI GOVERNMENT HE SAID I HAVE ALWAYS HAD EXCELLENT RELATIONSHIPS WITH
THE LABOR SIDE OF ISRAEL WHICH IS CURRENTLY IN POWER

RATHER HE SAID HE THOUGHT MR SAFIRE WAS OPERATING ON HIS OWN ASKED WHY
HE WOULD LET A SOLE NEWSPAPER COLUMNIST KNOCK HIM OUT OF THE BOX MR INMAN
SAID IF I'D WANTED TO STAY IN THE BOX I WOULD HAVE STAYED

IN THE CURRENT CLIMATE YOU'VE GOT TO WANT ONE OF THOSE JOBS AWFULLY
BADLY HE SAID IN THE INTERVIEW HE SAID THAT HE DIDN'T I LOOKED AT THIS
PROSPECT AS BEING ONE WHERE IT WAS CONSTANTLY NEGATIVE EVERY DAY AND
DECIDED THAT'S NOT HOW I WANT TO SPEND THE NEXT YEARS OF MY LIFE HE SAID
AT HIS NEWS CONFERENCE

IN ADDITION MR INMAN MAY HAVE LEARNED FROM HIS PRECONFIRMATION BRIEFINGS
THAT ONE OF THE BIGGEST PROBLEMS HE WOULD HAVE FACED AS DEFENSE SECRETARY
WOULD BE WRESTLING WITH A DEFENSE ESTABLISHMENT THAT ISN'T SHRINKING AS FAST
AS THE DEFENSE BUDGET

HE BEGAN HIS NEWS CONFERENCE BY DENYING THAT HE HAD ANY DIFFERENCES WITH
PRESIDENT CLINTON ON DEFENSE POLICY BUT HE CONCLUDED THE SESSION BY TOSSING
SOMETHING OF A FAREWELL HAND GRENADE TO MR CLINTON SAYING THAT TWO YEARS
FROM NOW THE PRESIDENT'S GOING TO FIND HIMSELF IN A TERRIBLE CRUNCH OF
EITHER FINDING MORE MONEY OR REDUCING FORCE LEVELS THAT IS EXACTLY THE
CRITICISM THAT MANY OF THE ADMINISTRATION'S CRITICS HAVE LEVELED AT THE
PLANNED DEFENSE BUDGETS AND AT MR ASPIN'S BOTTOMUP REVIEW OF THE US
DEFENSE FORCE STRUCTURE

I'VE READ LARGE VOLUMES NOW OF ISSUE PAPERS ON NATIONAL SECURITY HE SAID
I'VE NOT WHIPPED UP A GREAT APPETITE FOR THOSE ISSUES

JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9401190034 940119 GOFEN &
GLOSSBERG INC AGREES TO PAY 25000 IN SEC ANTIFRAUD CASE

WASHINGTON A CHICAGO INVESTMENTADVISORY FIRM AGREED TO PAY A 25000
PENALTY TO SETTLE ALLEGATIONS THAT THE FIRM VIOLATED ANTIFRAUD STATUTES IN
THE HANDLING OF 8 MILLION IN CUSTOMER ASSETS

THE FIRM GOFEN & GLOSSBERG INC NEITHER ADMITTED NOR DENIED THE VIOLATIONS
ALLEGED BY THE SECURITIES AND EXCHANGE COMMISSION IN AN ADMINISTRATIVE
ACTION THE FIRM FOUNDED IN 1932 HAS ABOUT 2 BILLION UNDER MANAGEMENT

THIS CASE IS SIGNIFICANT BECAUSE MORE AND MORE PEOPLE MAY BE USING
INVESTMENT ADVISERS SAID JOY BODDIE SPECIAL COUNSEL FOR THE SEC IN
CHICAGO

THE SEC CHARGES RELATE TO THE CUSTOMER ASSETS THAT GOFEN & GLOSSBERG HELD
UNDER ITS CONTROL AS TRUSTEE BETWEEN 1983 AND 1991 THE AGENCY ALLEGED THAT
THE FIRM FAILED TO DISCLOSE THE CUSTODY OF THE CUSTOMER ASSETS IN ITS
FILINGS WITH THE SEC FAILED TO FILE AN AUDITED BALANCE SHEET FOR THE
CUSTOMER ASSETS AND FAILED TO HIRE AN INDEPENDENT ACCOUNTANT TO CONDUCT A
SURPRISE ANNUAL EXAMINATION OF THE ACCOUNTS

THE FIRM AGREED TO BE CENSURED BY THE SEC AND SAID IT WILL HIRE A CONSULTANT
TO MONITOR ITS COMPLIANCE WITH SEC RULES FOR FIVE YEARS

THE FIRM'S LAWYER PAUL UHLENHOP OF CHICAGO DECLINED TO COMMENT ON THE SEC
ACTION AND A SPOKESMAN FOR THE FIRM COULDN'T BE REACHED IMMEDIATELY FOR
COMMENT 9401190033 940119 INTERNATIONAL WORLD WIRE  COMPILED
BY RICHARD L HOLMAN

THE US GOVERNMENT HAS BEGUN INITIATIVES DUBBED SHOWCASE GERMANY IN A
DRIVE TO INTEGRATE FOREIGN AND COMMERCIAL POLICY MORE CLOSELY TO SUPPORT
US BUSINESS ABROAD AND SPUR JOB CREATION

THE PROGRAM IN GERMANY TO COORDINATE DIVERSE GOVERNMENT RESOURCES TO SERVE
US BUSINESS INTERESTS AND EXPORTS COULD BECOME A GLOBAL PROTOTYPE FOR US
MISSIONS SAID US OFFICIALS IN FRANKFURT TO OPEN A BUSINESS INFORMATION
CENTER

THE SHOWCASE EFFORT AIMS TO BREAK DOWN TRADITIONAL BUREAUCRATIC BARRIERS
BETWEEN CONSULAR COMMERCIAL AND INFORMATION OFFICERS TO OFFER MORE DIRECT
SERVICES TO BUSINESSES FOR EXAMPLE CONSULAR STAFF HAVE INSTRUCTIONS TO
SPEED HANDLING OF PASSPORTS FOR US BUSINESS PEOPLE AND US VISAS FOR
GERMAN BUSINESS PEOPLE

THE PROGRAM ALSO ENVISIONS A STRATEGIC APPROACH TO TARGET GERMAN COMPANIES
THAT ARE POTENTIAL BUYERS OF US GOODS AND TO HELP US EXHIBITORS AT TRADE
FAIRS

IN A CLAIM FOR AN INJURY BLAMED ON REPETITIVE MOTION A BRITISH WOMAN WAS
AWARDED 118000 HER UNION SAID TERMING THE INLAND REVENUE SETTLEMENT THE
LARGEST YET IN THE COUNTRY THE 47YEAROLD PLAINTIFF WAS A TYPIST AT
BRITAIN'S TAX AGENCY AND DEVELOPED ARM PAINS IN 1990 SHE RETIRED LAST JULY
AND IS REGISTERED AS DISABLED JUST THREE MONTHS AGO BRITAIN'S HIGH COURT
REJECTED ANOTHER INJURY CLAIM LINKED TO REPETITIVE STRAIN RULING THE TERM
MEDICALLY MEANINGLESS LAST YEAR SEVERAL SETTLEMENTS WERE PAID IN BRITAIN
TO KEYBOARD USERS CLAIMING REPETITIVE STRESS INJURIES INCLUDING 67300 TO
A BANK SECRETARY

EASTERN GERMAN INSURANCE WORKERS AGREED TO A CONTRACT THAT WILL RAISE THEIR
WAGES TO 875 OF THEIR WESTERN COUNTERPARTS' PAY BY SEPT 1 HBV UNION AND
INDUSTRY OFFICIALS SAID THE ACCORD ALSO PROVIDES OLDER AND LONGTERM
EMPLOYEES PROTECTION AGAINST BEING FIRED INSURERS SAID THE DEAL IS MORE
GENEROUS THAN INDUSTRY PACTS IN THE WESTERN REGION BECAUSE EASTERN WORKERS
FACE MORE SERIOUS ECONOMIC PROBLEMS SUCH AS HIGHER INFLATION AS
REUNIFICATION EFFORTS CONTINUE

WEST AFRICAN FOOD SUPPLIES ARE BEING THREATENED BY SWARMS OF LOCUSTS THAT
CAN DEVOUR 100 TONS OF VEGETATION A DAY UNITED NATIONS OFFICIALS SAID
SENEGAL MAURITANIA AND SOUTHERN MOROCCO HAVE BEEN HIT HARDEST THE DAMAGE
FROM THE DESERT LOCUSTS ISN'T EXPECTED TO MATCH THAT OF A 1988 INVASION THAT
DEVASTATED CROPS IN PARTS OF NORTHERN AFRICA BUT OFFICIALS OF THE WEST
AFRICAN COUNTRIES DONOR NATIONS AND INTERNATIONAL INSTITUTIONS MEETING IN
ROME WORRIED THAT THE LOCUSTS COULD PUSH NORTH TO ALGERIA AND SOUTH TO
GAMBIA GUINEABISSAU AND GUINEA SEVERAL AFRICAN NATIONS HAVE APPLIED
SPRAYS TO PREVENT SWARMS FROM BREEDING AND ADVANCING

MEXICO COLOMBIA AND VENEZUELA POSTPONED TOMORROW'S SIGNING OF A BROAD
FREETRADE AGREEMENT AS MEXICAN AUTHORITIES SOUGHT TO RESOLVE A REBEL
UPRISING THE ACCORD WHICH MEXICO PURSUED TO DIVERSIFY ITS TRADE FURTHER
BEYOND NORTH AMERICA COVERS FARM GOODS DISPUTE RESOLUTION ILLEGAL
PRACTICES SAFEGUARDS INVESTMENT AND INTELLECTUAL PROPERTY RIGHTS SINCE
MEXICO SIGNED A PACT WITH CHILE IN 1991 BILATERAL TRADE MUSHROOMED 60
SEPARATELY FOREIGN INVESTMENT IN CHILE LAST YEAR SOARED 53 TO 268
BILLION FROM A YEAR EARLIER MAINLY IN INDUSTRIES AND MINING 43 OF THE
TOTAL CAME FROM US INVESTORS

THE BRITISH RETAIL CONSORTIUM SAID SHOPKEEPERS HAD 3 BILLION IN LOSSES LAST
YEAR FROM SHOPLIFTING AND BURGLARIES CRIME SLASHED THE SMALL RETAILERS'
EARNINGS ALMOST 25 THE ORGANIZATION SAID NOTING THE SITUATION PROMPTED
MANY STORES TO GO OUT OF BUSINESS A STUDY OF 54000 STORES IN THE UK
FOUND THAT HALF HAD BEEN VANDALIZED AND THE COST OF SECURITY EQUIPMENT TO
DETER OR COMBAT CRIME SOARED POLICE RECORDED MORE THAN ONE MILLION ARRESTS
INVOLVING SMALL SHOPS LAST YEAR

CORPORATE BANKRUPTCIES IN JAPAN EASED 09 TO 14041 IN 1993 MARKING THE
FIRST DECLINE IN THREE YEARS BUT A RECORD 61 OF THE FAILURES WERE CAUSED
BY RECESSION A CREDIT RESEARCH ORGANIZATION SAID

OF THE TOTAL 8534 CASES RESULTED FROM POOR SALES SLUMPING EXPORTS OR
OTHER CAUSES LINKED TO JAPAN'S THREEYEAROLD RECESSION TEIKOKU DATA BANK
LTD SAID THE PREVIOUS RECORD LEVEL OF RECESSIONLINKED INSOLVENCIES WAS
59 IN 1983 LAST YEAR THEY NUMBERED 6833 OR 48 OF THE TOTAL MEANWHILE
THE NUMBER OF BANKRUPTCIES CAUSED BY FALLING PRICES OF LAND STOCKS AND
DSECURITIES LAST YEAR FELL 30 TO 989

COMPANIES THAT FAILED LAST YEAR HAD TOTAL LIABILITIES OF 6051 BILLION AN
11 DROP FROM A YEAR EARLIER

BRITAIN'S ROYAL MINT WILL ISSUE A 50PENCE COIN TO COMMEMORATE ALLIED
FORCES' DDAY LANDING IN FRANCE ON JUNE 6 1944 DURING WORLD WAR II A
SILVER VERSION OF THE COIN WILL BE PRICED AT 3580 AND A GOLD ONE AT 560 
  SINCE PUBLICSECTOR DOCTORS IN BANGLADESH BEGAN A NATIONWIDE STRIKE A
WEEK AGO OVER PAY AND HEALTHCARE SPENDING HOSPITAL SOURCES SAID MORE THAN
100 PATIENTS HAVE DIED FOR LACK OF TREATMENT 9401190032 940119 CREDIT
RATINGS

CBS INC MOODY'S INVESTORS SERVICE INC UPGRADED 500 MILLION OF SENIOR
DEBT TO SINGLEA3 FROM BAA1 SAYING IT EXPECTS THAT CBS CASH FLOW WILL
CONTINUE TO BENEFIT FROM THE COMPANY'S POSITION AS THE LEADING TELEVISION
NETWORK AN IMPROVING ADVERTISING MARKET AND REDUCED DEBTSERVICE
REQUIREMENTS AFTER A DEBTTOEQUITY CONVERSION EARLIER THIS YEAR MOODY'S
SAID ITS RATING CONTINUES TO RECOGNIZE THE INHERENT VOLATILITY OF THE CBS
TELEVISION NETWORK AND SOME UNCERTAINTIES ABOUT FUTURE FINANCIAL STRATEGIES

RIGGS NATIONAL CORP WASHINGTON DC STANDARD & POOR'S CORP ASSIGNED
A SINGLEB RATING TO THIS BANK HOLDING COMPANY'S NEW 125 MILLION OF
SUBORDINATED DEBT IT ALSO RAISED ITS RATINGS ON AN ADDITIONAL 200 MILLION
OF DEBT INCLUDING AN UPGRADE OF EXISTING SUBORDINATED DEBT TO SINGLEB FROM
TRIPLECPLUS THE RATINGS AGENCY CITED THE COMPANY'S SUCCESS IN REDUCING
NONPERFORMING ASSETS RIGGS NATIONAL'S MAIN HOLDING IS RIGGS NATIONAL BANK
WASHINGTON DC 9401190031 940119 TEXAS JOURNAL  TRACKING TEXAS

THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 11114 IN THE
LATEST WEEK FROM 11108 THE PRIOR WEEK BUT THE ANNUAL GROWTH RATE OF THE
INDEX CONTINUED ITS SHARP DECLINE FALLING TO 258 FROM 277 A WEEK
EARLIER THE YEAROVERYEAR DECLINE SUGGESTS TEXAS' ECONOMIC GROWTH RATE IS
FALLING SLIGHTLY IN THE LATEST WEEK TEXAS REFINERY OUTPUT ROSE SLIGHTLY
9401190030 940119 TEXAS JOURNAL  WINNERS & LOSERS

 CAPPUCINO COWBOYS A DRIVETHROUGH ESPRESSO BAR IN RURAL JOHNSON COUNTY
IS DOING A BOOMING BUSINESS SERVING RANCHERS

 NERVOUS SURGEONS A HOUSTON GROUP RECEIVED FDA APPROVAL FOR AN ELECTRONIC
DEVICE TO WARN DOCTORS IF THEIR SURGICAL GLOVES TEAR

 BOONE PICKENS EVEN THOUGH HIS MESA INC AGREED TO PAY UNOCAL 428
MILLION TO SETTLE A SECURITIES LAWSUIT IT WAS LESS THAN ANALYSTS HAD
FEARED AND MESA'S STOCK JUMPED

 AUSTIN MAYOR BRUCE TODD BLAMED ELEMENTARY ACCOUNTING ERRORS FOR A
FINANCIAL CRISIS AT CITYOWNED BRACKENRIDGE HOSPITAL

 HEMISFAIR ARENA SAN ANTONIO OFFICIALS SAY THE AGING LANDMARK MUST BE
DEMOLISHED TO MAKE WAY FOR EXPANDED CONVENTION FACILITIES

 HISPANIC ACTIVISTS SOUTHWESTERN BELL HALTED CONTRIBUTIONS TO THE MEXICAN
AMERICAN LEGAL DEFENSE AND EDUCATIONAL FUND AFTER THE GROUP HIRED A
PROMINENT CRITIC OF SOUTHWESTERN BELL 9401190029 940119 WHO'S NEWS 
ONCOGENE SCIENCE INC

ONCOGENE SCIENCE INC UNIONDALE NY GARY E FRASHIER 57 YEARS OLD
WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN OF THIS BIOPHARMACEUTICAL
COMPANY MR FRASHIER FORMERLY PRESIDENT CONTINUES AS CHIEF EXECUTIVE
OFFICER STEVEN M PELTZMAN 47 CHIEF OPERATING OFFICER SUCCEEDS MR
FRASHIER AS PRESIDENT 9401190028 940119 WHAT'S NEWS  BUSINESS AND
FINANCE

VIACOM INCREASED ITS BID FOR PARAMOUNT TO ABOUT 97 BILLION ALTHOUGH THE
CURRENT MARKET VALUE STILL FALLS SHORT OF THE 101 BILLION OFFER BY RIVAL
QVC NETWORK MANY TRADERS SAID THEY PREFER VIACOM'S BID BECAUSE IT CONTAINS
A NEW PROVISION TO PROTECT SHAREHOLDERS AGAINST A DOWNTURN IN THE PRICE OF
VIACOM'S STOCK A MAJOR COMPONENT OF ITS CASHANDSTOCK BID

PRUDENTIAL SECURITIES AGREED TO BE TEMPORARILY SUSPENDED FROM OPENING NEW
BROKERAGE ACCOUNTS IN TEXAS AND TO PAY 15 MILLION IN A SETTLEMENT WITH
STATE REGULATORS AFTER AN INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES

CHRYSLER'S FOURTHQUARTER PROFIT MORE THAN DOUBLED TO ITS HIGHEST LEVEL FOR
THAT PERIOD SURPASSING ESTIMATES AND SENDING ITS STOCK TO A RECORD GM AND
FORD SHARES ALSO JUMPED AS RISING US VEHICLE SALES AND HIGHER PRICES
PROMISE SOLID EARNINGS IN DETROIT

CITIBANK CHEMICAL AND SEVERAL OTHER OF THE LARGEST US BANKS REPORTED
SHARPLY HIGHER FOURTHQUARTER EARNINGS INVESTORS TOOK PROFITS SENDING SOME
BANKING STOCKS DOWNWARD

ELI LILLY PLANS A 12 BILLION PRETAX FOURTHQUARTER CHARGE MOSTLY TO
STREAMLINE FOREIGN OPERATIONS AND FUND EARLY RETIREMENT OF 2600 WORKERS
THE PHARMACEUTICAL COMPANY ALSO OUTLINED ITS PROPOSAL TO SELL OR SPIN OFF
ITS ENTIRE MEDICALDEVICE BUSINESS

BROWNINGFERRIS'S FORMER GENERAL COUNSEL WAS ACCUSED BY THE SEC OF INSIDER
TRADING FOR SELLING SHARES IN THE GARBAGEDISPOSAL FIRM BEFORE IT MADE A
DISAPPOINTING EARNINGS PROJECTION

NORTHWEST AIRLINES FILED FOR AN INITIAL PUBLIC OFFERING OF 23 MILLION COMMON
SHARES AT A PRICE OF AS MUCH AS 20 APIECE OR A TOTAL OF 460 MILLION

CBS IS EXPECTED TO BE AWARDED THE TV RIGHTS TO THE 1998 WINTER OLYMPICS IN
JAPAN FOR AN ESTIMATED 375 MILLION THE EXPECTED WIN FOLLOWS CBS'S LOSS
LAST MONTH OF THE RIGHTS TO A PACKAGE OF NFL GAMES IT HAD HELD FOR 38 YEARS

TREASURY SECRETARY BENTSEN LAUNCHED AN EFFORT TO WIN FULL BUSINESS RIGHTS
FOR US FINANCIALSERVICE FIRMS IN EMERGING ECONOMIES HE ALSO HINTED AGAIN
THAT THE US MAY BE CLOSE TO LIFTING ITS TRADE EMBARGO ON VIETNAM

JAPAN'S BIG FOUR BROKERAGE FIRMS RECEIVED RATINGS DOWNGRADES FROM S&P
ALTHOUGH THEIR PROFITS AND STOCK PRICES ARE RISING THE FIRMS ARE STILL
CRIMPED BY HIGH COSTS AND VULNERABLE TO A MARKET DOWNTURN ANALYSTS SAY

WARNACO AGREED TO BUY THE UNDERWEAR UNIT OF CALVIN KLEIN AND THE RIGHTS TO
OTHER MERCHANDISE UNDER THE DESIGNER'S NAME FOR 64 MILLION

PROCTER & GAMBLE PLANS TO DISCONTINUE ITS CLARION COSMETICS BRAND THE
LATEST IN A SERIES OF PRODUCTS P&G HAS ELIMINATED IN ITS EFFORT TO SLASH
COSTS

AEROFLOT SIGNED A PRELIMINARY PACT TO LEASE FOUR BOEING 767S FROM GPA GROUP
FOR ITS TRANSATLANTIC ROUTES THE DEAL REPRESENTS A VITAL TOEHOLD IN RUSSIA
FOR BOTH GPA AND BOEING

BONDS LEHMAN BROTHERS TREASURY INDEX 559554 UP 1896

COMMODITIES OIL 1487 A BARREL OFF 23 CENTS DOW JONES FUTURES INDEX
14218 UP 004 SPOT INDEX 13026 OFF 015

DOLLAR 11075 YEN OFF 031 17465 MARKS OFF 00088 9401190027 940119
TEXAS JOURNAL  WESTERN CO ADAPTS TO A LEAN MEAN ERA  BY
LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL

HOUSTON IN THE HEYDAY OF THE TEXAS OIL BOOM IN THE LATE '70S A BRUNETTE
KNOWN AS THE WESTERN COMPANY GIRL APPEARED ON TELEVISION SPOTS AND
CAPTURED THE MOOD OF THE INDUSTRY WITH THIS SNAPPY ONELINER IF YOU DON'T
HAVE AN OIL WELL GET ONE

A BANKRUPTCYLAW FILING AND SEVERAL DEBT RESTRUCTURINGS LATER WESTERN CO
OF NORTH AMERICA NOW ESCHEWS SUCH FLASHY PROMOTION STICKING TO MORE
ECONOMICAL ADVERTISING IN TRADE JOURNALS

THE COMPANY FOUNDED BY ENTREPRENEUR EDDIE CHILES NOW EMBODIES A NEW
OILINDUSTRY ETHIC OF A LEAN NIMBLE COMPANY PREPARED TO ADAPT QUICKLY TO
DIPS IN ENERGY PRICES AN IMPORTANT SKILL NOW THAT CRUDEOIL PRICES ARE
HITTING FIVEYEAR LOWS MANY ENERGYRELATED COMPANIES HAVE SLASHED DEBT AND
STREAMLINED OPERATIONS BUT WESTERN IS ONE OF THE INDUSTRY'S BIGGEST
TURNAROUND STORIES IN A PROCESS THAT BEGAN SEVEN YEARS AGO AND IS
CONTINUING WESTERN CUT COSTS PARED DEBT AND SOLD OFF DRILLING RIGS TO
CONCENTRATE ON ITS MORE PROFITABLE OILWELL SERVICES BUSINESS

AMID A GENERALLY GLOOMY OUTLOOK FOR ENERGY COMPANIES WESTERN IS NOW A
BRIGHT SPOT COMPARED TO ITS PEERS WESTERN HAS GONE FROM BEING ONE OF THE
MOST LEVERAGED TO ONE OF THE LEAST LEVERAGED IN A PERIOD OF ABOUT A YEAR
SAYS JAMES CARROLL AN OILSERVICE ANALYST AT PAINEWEBBER INC CONSIDERING
THAT SOME INVESTORS WERE CONCERNED ABOUT THE COMPANY'S SURVIVABILITY IN
MID1992 WESTERN MADE A PRETTY SIGNIFICANT SWING

WESTERN'S STOCK MORE THAN DOUBLED DURING 1993 STARTING THE YEAR AT 575 A
SHARE AND ENDING IT AT 12875 ACCORDING TO WILSHIRE ASSOCIATES INC A
SANTA MONICA CALIF FINANCIALCONSULTING FIRM WESTERN WAS THE YEAR'S
THIRDBIGGEST GAINER AMONG TEXAS ENERGY STOCKS AFTER ENERGY SERVICE CO OF
DALLAS AND TEJAS GAS CORP OF HOUSTON

IN FACT THE TURNAROUND HAS COME SO FAR THAT WESTERN'S NEW MANAGEMENT CLAIMS
TO BE UNFAZED BY THE RECENT DROP IN OIL PRICES

SHELDON ERIKSON HIRED IN 1987 AS CHIEF EXECUTIVE OFFICER TO REVERSE THE
COMPANY'S FORTUNES HAS FIVE PROFITABLE QUARTERS UNDER HIS BELT HE VOWS THE
COMPANY WILL BE IN THE BLACK FOR 1994

WESTERN HAS THE ADVANTAGE OF BEING TIED CLOSELY TO NATURALGAS PRICES 
ABOUT 67 OF ITS OILWELLSERVICES BUSINESS IS ON NATURALGAS WELLS AND
NATURALGAS PRICES HAVE REMAINED HEALTHY SO FAR BUT IF GAS PRICES FOLLOW
OIL PRICES ON THEIR DOWNWARD CURVE AS SOME INDUSTRY OBSERVERS BELIEVE THEY
WILL MR ERIKSON SAYS WE'LL JUST ADJUST OUR ORGANIZATION DOWN  WE
HAVE LEARNED TO ALWAYS BE PREPARED TO ADJUST TO CHANGES IN THE MARKET

IF MR ERIKSON SCALES BACK OPERATIONS IT WON'T BE THE FIRST TIME AFTER
TAKING OVER AS CHIEF EXECUTIVE IN 1987 AFTER MR CHILES STEPPED DOWN FROM
THAT POSITION HE REMAINED CHAIRMAN MR ERIKSON CUT OPERATIONS LAID OFF
EMPLOYEES AND FILED FOR BANKRUPTCY PROTECTION MR CHILES'S CORPORATE JET
WAS ONE OF THE FIRST THINGS TO GO WESTERN'S COMFORTABLE OFFICES IN WEST
FORT WORTH WERE SOLD AND THE COMPANY'S ELABORATE CORPORATE MUSEUM WAS GIVEN
AWAY

MANY EXECUTIVES WERE FIRED AND MR CHILES WASN'T REPLACED AFTER HE RETIRED
AS CHAIRMAN IN 1988 HE DIED LAST YEAR AT THE AGE OF 83 NOW THERE ARE FEW
LAYERS OF MANAGEMENT MR ERIKSON HIMSELF HOLDS MULTIPLE TITLES HE'S CHIEF
EXECUTIVE CHAIRMAN AND PRESIDENT AT WESTERN AND HAS ALSO BEEN PRESIDENT OF
WESTERN PETROLEUM SERVICES GROUP SINCE THE PREVIOUS HEAD OF THE SUBSIDIARY
WAS DISMISSED IN 1988

MOREOVER HALF OF WESTERN'S 2000 EMPLOYEES HAVE THEIR SALARIES TIED TO THE
COMPANY'S PROFITABILITY WITH INCENTIVES ACCOUNTING FOR 10 TO 40 OF THEIR
COMPENSATION SAYS MR ERIKSON

THAT MEANS THE SALARY BUDGET AUTOMATICALLY DROPS WHENEVER PROFITS DO OTHER
COMPANIES HAVE INCENTIVE PLANS BUT WESTERN'S IS UNUSUALLY COMPREHENSIVE
WESTERN HAS GOT PLACES WHERE FIELD WORKERS ARE ON INCENTIVE PLANS THAT'S
UNUSUAL SAYS JAMES WICKLUND AN ANALYST AT RAUSCHER PIERCE REFNES INC

WESTERN HAS ADDED TO ITS CUSHION BY VIRTUALLY GETTING RID OF ITS OFFSHORE
DRILLING CONTRACTING BUSINESS IN OCTOBER IT SOLD NINE OF ITS 11 OFFSHORE
RIGS FOR 150 MILLION AND FOCUSING ON ITS OILSERVICE BUSINESS

OF THE TWO SECTORS MR ERIKSON WAS LESS COMFORTABLE WITH CONTRACTING
BECAUSE IT FLUCTUATES MORE RAPIDLY WITH THE PRICE OF GAS AND OIL THAN OIL
SERVICE WHICH IS DONE ON BOTH NEW AND EXISTING WELLS

NOW THE COMPANY IS FREE TO CONCENTRATE ON ITS BIGGEST STRENGTH WELL
STIMULATION WHICH INVOLVES PRESSUREPUMPING ENORMOUS AMOUNTS OF SANDS OR
LIQUIDS INTO THE GROUND TO CREATE CRACKS IN THE EARTH THAT OIL CAN FLOW
THROUGH THAT BUSINESS IS LESS COMPETITIVE THAN CONTRACTING AND PLAYS TO
THE COMPANY'S STRONG RELATIONSHIPS WITH DOMESTIC INDEPENDENT PRODUCERS

WESTERN IS ALSO ON THE WAY TOWARD CLEANING UP A CAPITAL STRUCTURE THAT TWO
YEARS AGO SEEMED ABOUT TO SEND THE COMPANY ON A SECOND TRIP THROUGH
BANKRUPTCY COURT THE PROBLEMS AROSE WHEN GAS PRICES PLUNGED IN EARLY 1992
WESTERN'S STOCK FELL TO ABOUT 3 A SHARE AS INVESTORS WORRIED THE COMPANY
WOULDN'T BE ABLE TO MEET PAYMENTS ON 160 MILLION IN DEBT

BUT WESTERN RESCHEDULED SOME PAYMENTS AND LATER PAID OFF BANK LOANS BY
ISSUING 95 MILLION IN HIGHINTEREST BONDS LAST MONTH WESTERN ANNOUNCED A
PLAN TO PAY OFF THOSE BONDS AT 119 ON THE DOLLAR BY USING SOME OF THE
PROCEEDS FROM THE SALE OF THE DRILLING RIGS

EVEN IF BONDHOLDERS ACCEPT THE OFFER IN A VOTE SCHEDULED TO BEGIN THIS WEEK
AND BE COMPLETED IN ABOUT A MONTH WESTERN WILL HAVE SOME 50 MILLION IN
CASH TO HELP WEATHER HARD TIMES OR EVEN TO TAKE ADVANTAGE OF
BARGAINBASEMENT PRICES TO SNAP UP OTHER OILFIELD SERVICE CONCERNS
9401190026 940119 INTERNATIONAL NESTLE SETS INVESTMENTS IN CHINA

ZURICH NESTLE SA ANNOUNCED PLANS TO INVEST 45 MILLION IN TWO DAIRY
PRODUCT VENTURES IN QINGDAO IN THE PROVINCE OF SHANDONG IN EASTERN CHINA

THE SWISS FOOD AND BEVERAGE CONCERN WILL HOLD A 75 STAKE IN EACH VENTURE
BOTH WITH QINGDAO MILK COURSE CO 9401190025 940119 ROLLSROYCE UNIT GETS
CONTRACT

OTTAWA BRISTOL AEROSPACE LTD A CANADIAN SUBSIDIARY OF ROLLSROYCE PLC
HAS RECEIVED A 36 MILLION CONTRACT TO SUPPLY THE US AIR FORCE WITH
SUPPORT ASSEMBLIES FOR AIRCRAFT ENGINES

THE CONTRACT WAS RECEIVED THROUGH CANADIAN COMMERCIAL CORP A CANADIAN
GOVERNMENT CONTRACTING AGENCY BRISTOL AEROSPACE IS BASED IN WINNIPEG
MANITOBA 9401190024 940119 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE
CORP FOURTHQUARTER NET INCOME JUMPED 32 TO 204 MILLION

FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID THAT FOURTHQUARTER
NET INCOME JUMPED 32 TO 204 MILLION OR 104 A SHARE

THAT COMPARES WITH NET INCOME OF 155 MILLION OR 80 CENTS A SHARE A YEAR
EARLIER THE GOVERNMENTSPONSORED CONCERN SAID REVENUE ROSE 24 TO 521
MILLION FROM 421 MILLION A YEAR EARLIER

THE COMPANY'S PROFIT COMES PRIMARILY FROM FEES EARNED FROM BUYING MORTGAGES
AND PACKAGING THEM AS SECURITIES AND INTEREST COLLECTED ON THE LOANS IT
KEEPS AS INVESTMENT

IN THE QUARTER FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO
INCREASED 41 TO 324 MILLION COMPARED WITH 230 MILLION A YEAR EARLIER

IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY FREDDIE MAC SHARES CLOSED AT
5475 UP 1375

FOR THE YEAR NET GREW 26 TO 786 MILLION OR 407 A SHARE FROM 622
MILLION OR 329 A SHARE THE YEAR BEFORE REVENUE ROSE 19 TO 201
BILLION FROM 169 BILLION 9401190023 940119 TEXAS JOURNAL  REAL
ESTATE  BY TARA PARKERPOPE

THE TEXAS FORECLOSURE PICTURE IS STILL A LONG WAY FROM HEALTHY

THE TOTAL NUMBER OF FORECLOSURES HAS DROPPED BY MORE THAN 56 SINCE 1989
THE LARGEST SUCH DECLINE OF ANY STATE AND FROM 1992 TO 1993 TEXAS
FORECLOSURES DROPPED BY A HEALTHY 15

BUT THE IMPROVEMENT SAYS MORE ABOUT HOW BAD THINGS WERE THAN IT DOES ABOUT
HOW GOOD THINGS ARE IN FACT A TRUER PICTURE CAN BE GLEANED BY LOOKING AT
THE ACTUAL RATE OF FORECLOSURE THE NUMBER OF FORECLOSURES PER 1000
PROPERTIES

IN TEXAS NINE OUT OF EVERY 1000 PROPERTIES WERE FORECLOSED IN 1993
ACCORDING TO TRW REDI PROPERTY DATA IN RIVERSIDE CALIF TWO TEXAS COUNTIES
 DALLAS AND TARRANT WITH RATES OF 11 AND 12 RESPECTIVELY WERE ABOVE THE
STATE AVERAGE

RECESSIONWRACKED SOUTHERN CALIFORNIA HAS A HIGHER RATE BUT NOT MUCH
HIGHER SOUTHERN CALIFORNIA POSTED A FORECLOSURE RATE OF 11 PROPERTIES PER
1000 LAST YEAR COMPARED WITH SEVEN PROPERTIES PER 1000 IN 1992

SO WHAT DO THE NUMBERS MEAN

RESEARCHERS SAY THAT ALTHOUGH THE NUMBER OF FORECLOSURES IN TEXAS CONTINUES
TO DROP THE STATE IS FAR FROM A HEALTHY RATE OF THREE OR FOUR FORECLOSURES
PER 1000

ANYTHING BELOW FIVE IS INDICATIVE OF A MORE HEALTHY MARKET SAYS NIMA
NATTAGH MARKET ANALYST WITH TRW REDI

MOREOVER MR NATTAGH SAYS UNTIL TEXAS' FORECLOSURE RATE REACHES A
HEALTHIER LEVEL RESIDENTIAL AND COMMERCIAL PRICES WILL CONTINUE TO SUFFER
FORECLOSURES TEND TO DRIVE DOWN THE PRICE OF COMPARABLE PROPERTIES THAT ARE
SELLING UNDER NORMAL CONDITIONS MR NATTAGH SAYS

AND THE FUTURE MORE OF THE SAME ANALYSTS SAY FORECLOSURE RATES PROBABLY
WILL DROP ANOTHER 10 TO 20 IN THE NEXT COUPLE OF YEARS BUT THE GLUT OF
TROUBLED PROPERTY STILL LOOMS OVER THE MARKET AND IT'S GOING TO TAKE A LONG
TIME FOR FORECLOSURE RATES TO REACH THE HEALTHY LEVELS OF THE EARLY 1980S
IF THEY EVER DO

THE NUMBER OF FORECLOSURES IN TEXAS COUNTIES IN SEVERAL STATES AND TEXAS
COUNTIES MONTHS FIGURES INCLUDE BOTH RESIDENTIAL AND COMMERCIAL
FORECLOSURES REPORTED IN MAJOR METROPOLITAN COUNTIES 9401190022 940119
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

BLACK & DECKER CORP 250 MILLION OF NOTES DUE FEB 1 2006 PRICED AS 7S
AT 99717 TO YIELD 7035 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE
ISSUE WAS PRICED AT A SPREAD OF 132 BASIS POINTS ABOVE TREASURYS RATED BA1
BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S
CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS
INC

CHEMICAL BANKING CORP 200 MILLION OF SUBORDINATED NOTES DUE JAN 15
2009 PRICED AS 65S AT 99777 TO YIELD 6523 ACCORDING TO MCM
CORPORATEWATCH THE NOTES WERE PRICED AT A SPREAD OF 81 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

DUTY FREE INTERNATIONAL INC 115 MILLION OF NOTES DUE JAN 15 2004
PRICED AS 7S AT 996 TO YIELD 7056 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE
TREASURYS RATED BA1 BY MOODY'S AND TRIPLEB1 BY S&P THE ISSUE WILL BE
SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO

GTE NORTH INC 250 MILLION OF DEBENTURES DUE JAN 15 2004 PRICED AS 6S
AT 99075 TO YIELD 6125 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE
DEBENTURES WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE
ISSUE IS RATED SINGLEA1 BY AND DOUBLEAMINUS BY S&P THE ISSUE WAS SOLD
THROUGH A COMPETITIVE BID WON BY DILLON READ & CO GTE NORTH IS A UNIT OF
GTE CORP

MERCANTILE BANK NA 75 MILLION OF SUBORDINATED NOTES DUE JAN 15 2004
PRICED AS 6375S AT 99501 TO YIELD 6444 ACCORDING TO MCM CORPORATEWATCH
THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE
TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE
WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MERCANTILE
BANK IS A UNIT OF MERCANTILE BANCORPORATION INC

MITCHELL ENERGY DEVELOPMENT CORP 250 MILLION OF SENIOR NOTES DUE FEB
15 2004 PRICED AT PAR TO YIELD 675 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE
TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL
BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC

PUBLIC SERVICE CO OF COLORADO 2127 MILLION OF FIRST COLLATERALIZED
TRUST BONDS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO
MCM CORPORATEWATCH THE FIRST TRANCHE 1027 MILLION OF FIRST
COLLATERALIZED TRUST BONDS DUE JAN 1 2001 WAS PRICED AS 6S AT 99698 TO
YIELD 6053 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 60 BASIS
POINTS ABOVE TREASURYS THE SECOND TRANCHE 110 MILLION OF FIRST
COLLATERALIZED TRUST BONDS DUE JAN 1 2024 WAS PRICED AS 725S AT 98491
TO YIELD 7375 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A
SPREAD OF 97 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED BAA1 BY
MOODY'S AND TRIPLEBPLUS BY S&P

SALOMON INC 150 MILLION OF NOTES DUE JAN 15 2006 PRICED AS 675S AT
99971 TO YIELD 6754 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE
NOTES WERE PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE TREASURYS RATED
SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC

SOUTHERN UNION CO 475 MILLION OF DEBENTURES DUE FEB 1 2024 PRICED
AT PAR TO YIELD 76 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE
DEBENTURES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS
RATED BAA3 BY MOODY'S AND TRIPLEB1 BY S&P THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY MERRILL LYNCH & CO

STUDENT LOAN MARKETING ASSOCIATION 100 MILLION OF FLOATINGRATE NOTES
DUE JAN 21 1997 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE
COUPON ON THE NONCALLABLE NOTES WILL FLOAT DAILY AND PAY QUARTERLY AT 255
BASIS POINTS BELOW THE PRIME RATE THE FIRST COUPON WILL BE SET APRIL 21
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC

TYCO INTERNATIONAL LTD 105 MILLION OF NOTES DUE JAN 15 2004 PRICED
AS 6375S AT 99226 TO YIELD 6482 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE
TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL
BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC

UNION PACIFIC CORP 150 MILLION OF NOTES DUE JAN 15 2004 PRICED AS
6125S AT 9927 TO YIELD 6224 ACCORDING TO MCM CORPORATEWATCH THE NOTES
NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 52 BASIS POINTS
ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA1 BY S&P THE
ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC

VIRGINIA ELECTRIC & POWER CO 125 MILLION OF FIRST AND REFUNDING
MORTGAGE BONDS DUE JAN 1 2024 PRICED AS 7S AT 98637 TO YIELD 711
ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE
PRICED AT A SPREAD OF 685 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED
SINGLEA2 BY MOODY'S AND SINGLEA1 BY S&P THE ISSUE WAS SOLD THROUGH A
COMPETITIVE BID WON BY SALOMON BROTHERS INC VEPCO IS A UNIT OF DOMINION
RESOURCES INC

CONGRESS ROTISSERIE INC INTITIAL PUBLIC OFFERING OF 125000 CLASS A
COMMON SHARES PRICED AT 8 EACH THROUGH COBURN & MEREDITH INC ACCORDING TO
THE COMPANY

PEOPLES BANCORP OF INDIANAPOLIS INITIAL OFFERING OF 392157 NONVOTING
COMMON SHARES PRICED AT 2550 EACH THROUGH UNDERWRITERS LED BY MCDONALD &
CO SECURITIES INC AND RAFFENSPERGER HUGHES & CO

FLORIDA BOARD OF EDUCATION 182 MILLION OF FULLFAITHANDCREDIT
PUBLICEDUCATION CAPITALOUTLAY BONDS APPARENTLY WON BY A MERRILL LYNCH &
CO GROUP THE BONDS RATED DOUBLEA1 BY MOODY'S AND S&P WERE PRICED FOR
REOFFERING TO YIELD FROM 275 IN 1995 TO 535 IN 2024

HOUSTON TEXAS 1027 MILLION OF PUBLICIMPROVEMENT REFUNDING BONDS
SERIES 1994A TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD
FROM 255 IN 1995 TO 525 IN 201112 UNDERWRITERS EXPECT THE BONDS WILL
BE RATED DOUBLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P

NASSAU COUNTY NY 2564 MILLION OF GENERALOBLIGATION REFUNDING SERIAL
BONDS SERIES 1994A AND SERIES 1994B TENTATIVELY PRICED BY A SMITH BARNEY
SHEARSON INC GROUP TO YIELD FROM 22 IN 1994 TO 51 IN 201316 THE
OFFERING IS FGICINSURED AND RATED TRIPLEA1 BY MOODY'S AND S&P THE
OFFERING CONSISTS OF 1725 MILLION OF SERIAL GENERALIMPROVEMENT REFUNDING
BONDS SERIES 1994A AND 839 MILLION OF SERIAL COMBINED SEWER DISTRICTS
REFUNDING BONDS SERIES 1994B

PHILADELPHIA 179 MILLION OF GASWORKS REVENUE BONDS TENTATIVELY PRICED
BY A PAINEWEBBER INC GROUP THERE ARE VARIOUS INSURED AND UNINSURED BONDS
WITH THE HIGHEST YIELD 575 ON UNINSURED BONDS DUE 2015 THERE ARE 44
MILLION OF BONDS INSURED BY AMBAC INDEMNITY CORP PRICED TO YIELD FROM 3
IN 1995 TO 54 IN 2015 THERE ARE 582 MILLION OF BONDS INSURED BY THE
MUNICIPAL BOND INVESTORS ASSURANCE CORP PRICED TO YIELD FROM 34 IN 1996
TO 485 IN 2005 THERE ARE 363 MILLION OF BONDS INSURED BY FINANCIAL
SECURITY ASSURANCE DUE 2021 TO YIELD 55 AND DUE 2024 TO YIELD 555 AND
THERE ARE 406 MILLION OF UNINSURED BONDS PRICED TO YIELD FROM 5 IN 2002
TO 57 IN 2015 INSURED BONDS ARE RATED TRIPLEA1 BY MOODY'S AND BY S&P
THE UNINSURED BONDS ARE RATED BAA1 BY MOODY'S AND TRIPLEB1 BY S&P

PORT AUTHORITY OF NEW YORK AND NEW JERSEY 100 MILLION REVENUE
CONSOLIDATED BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP THE
BONDS WERE PRICED FOR REOFFERING TO YIELD FROM 5 IN 2009 TO 528 IN
202324 BONDS DUE 2029 AREN'T PUBLICLY REOFFERED

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE
OFFERING SERIES 199420 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND
WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES
OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 199423 IS BACKED BY
THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED
AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY
OF 357 MONTHS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 2229 MILLION OF REMIC SECURITIES
OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199421 IS BACKED BY
SEVERAL OF THE AGENCY'S REMIC AND STRIPPED MORTGAGEBACKED SECURITIES

ABBEY NATIONAL TREASURY SERVICES PLC UK THREE BILLION FRENCH FRANCS
OF 6 EUROBONDS DUE FEB 17 2004 AT ISSUE PRICE 101185 VIA SOCIETE BANQUE
SUISSE AND CAISSE DE DEPOT ET CONSIGNATION REOFFERED AT 9956 TO YIELD
606 A MARGIN OF 38 BASIS POINTS OVER THE MID YIELD ON FRENCH TREASURY'S
55 OBLIGATIONS ASSIMABLES DU TRESOR DUE APRIL 2004 GUARANTOR ABBEY
NATIONAL PLC FEES TWO

ABN AMRO BANK NV NETHERLANDS 500 MILLION DUTCH GUILDERS OF 6125
EUROBONDS DUE FEB 16 2007 AT ISSUE PRICE 997 FOR OWN ACCOUNT REOFFERED
AT FIXED PRICE 99 TO YIELD 624 A MARGIN OF 30 BASIS POINTS ABOVE
COMPARABLE DUTCH STATE LOAN FEES ONE

BRITISH GAS PLC UK 200 MILLION OF 7125 EUROBONDS DUE FEBRUARY 2044
AT ISSUE PRICE 100616 VIA LEAD UNDERWRITER CREDIT SUISSE FIRST BOSTON LTD
REOFFERED AT 98741 TO YIELD 731 A MARGIN OF 50 BASIS POINTS OVER 875
UK GILT OF 2017 BONDS HAVE STANDARD SPENS CLAUSE AND CALLABLE AT ANY TIME
AT HIGHER OF PAR OR PRICE TO GIVE YIELD EQUAL TO PREVAILING LONGDATED GILT
FEES 25

COMPAGNIE BANCAIRE FRANCE ONE BILLION FRENCH FRANCS OF ZERO COUPON
EUROBONDS DUE MAR 2 1995 AT ISSUE AND FIXED REOFFER PRICE 998 VIA BANQUE
PARIBAS REDEMPTION FORMULA IS AS FOLLOWS AT PREMIUM OF 8 TIMES NUMBER OF
DAYS FROM PAYMENT DATE DEVIDED BY 360 WHILE THREEMONTH PARIS INTERBANK
OFFERED RATE IS IN DEFINED RANGE RANGE DEFINED AS FOLLOWS LOWER RANGE IS
56 MINUS DIFFERENCE OF J TIMES 56 MINUS 42 DIVIDED BY 365 UPPER
RANGE 66 MINUS DIFFERENCE OF J TIMES 66 MINUS 52 DIVIDED BY 365 J
EQUALS EXACT NUMBER OF DAYS FROM PAYMENT DATE TO MATURITY FEES 0125

CS FIRST BOSTON INC SWISS PARENT 150 MILLION OF FLOATINGRATE NOTES
OFF ITS EURO MEDIUMTERM NOTE PROGRAM PRICED AND REOFFERED AT PAR VIA
CREDIT SUISSE FIRST BOSTON NOTES BEAR COUPON OF SIXMONTH LONDON INTERBANK
OFFERED RATE LESS 0125 TO A MINIMUM OF 5 NO MAXIMUM FEES 0375

DEUTSCHE BANK AUSTRALIA LTD MELBOURNE GERMAN PARENT 100 MILLION
AUSTRALIAN DOLLARS OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT ISSUE AND
FIXED REOFFER PRICE 9992 VIA DEUTSCHE BANK AG LONDON INTEREST PAID
QUARTERLY AT 025 POINT BELOW THE THREEMONTH AUSTRALIAN BANKBILLS RATE
GUARANTOR DEUTSCHE BANK AG FEES 015

DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK GERMANY 250 MILLION OF 45
EUROBONDS DUE FEB 18 1997 AT ISSUE PRICE 100841 VIA ABN AMRO BANK NV
REOFFERED AT 99654 TO YIELD 463 A MARGIN OF 13 BASIS POINTS ABOVE THE
4375 US TREASURY DUE 1996 FEES 1375

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SUPRANATIONAL 200
MILLION OF FLOATINGRATE EURONOTES DUE FEB 21 1995 AT ISSUE AND FIXED
REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAID
QUARTERLY AT THREEMONTH LIBOR PLUS 05 SUBJECT TO FOLLOWING RANGES ZERO
TO 4 IN THE FIRST SIX MONTHS AND ZERO TO 425 IN THE SECOND SIX MONTHS
FEES 015

GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION OF 6 EUROBONDS
DUE FEB 18 2004 AT ISSUE PRICE 101494 VIA DEUTSCHE BANK AG LONDON
REOFFERED AT 99819 TO YIELD 602 A MARGIN OF 21 BASIS POINTS ABOVE
COMPARABLE US TREASURY FEES TWO

GENERAL ELECTRIC CAPITAL CORP US PARENT 500 MILLION SWEDISH KRONOR
OF 65 EUROBONDS DUE FEB 8 1999 AT ISSUE PRICE 101625 VIA DEUTSCHE BANK
AG LONDON REOFFERED AT PAR TO YIELD 65 MARGIN OF 18 BASIS POINTS ABOVE
COMPARABLE SWEDISH GOVERNMENT BOND FEES 1875

HOUSING SECURITIES LTD UK 100 MILLION OF 8375 EUROBONDS DUE JAN
25 2019 AT ISSUE PRICE 100021 VIA HAMBROS BANK LTD AT COMANAGERS'
BREAKEVEN PRICE OF 99271 BONDS YIELD 844 A MARGIN OF 178 BASIS POINTS
OVER 875 UK GILT OF 2017 FEES 075 INTEREST PAYABLE SEMIANNUALLY

KISSEI PHARMACEUTICAL CO JAPAN 100 MILLION OF 1375 EUROBONDS WITH
EQUITY WARRANTS DUE FEB 10 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD
WARRANTS EXERCISABLE TO PURCHASE SHARES IN KISSEI AT INDICATED PREMIUM 25
CONVERSION PERIOD RUNS FROM FEB 24 TO JAN 29 1998 TERMS FIXED JAN 24
FEES 225 POINTS INCLUDING SPECIAL LEAD MANAGER'S FEE 015

KNP BT ANTILLIANA NV NETHERLANDS ONE BILLION AUSTRIAN SCHILLINGS OF
6375 PUBLIC BONDS DUE FEB 3 2001 PRICED AT 101625 VIA CREDITANSTALT
BANKVEREIN FEES 21

NEW ZEALAND DAIRY BOARD FINANCE LTD NEW ZEALAND 50 MILLION NEW ZEALAND
DOLLARS OF 525 EUROBONDS DUE FEB 25 1999 AT ISSUE PRICE 10095 VIA
HAMBROS BANK LTD AT COMANAGERS' BREAKEVEN PRICE 99075 THE BONDS YIELD
547 A MARGIN OF 18 BASIS POINTS ABOVE NEW ZEALAND GOVERNMENT BOND DUE
FEB 1998 FEES TWO

NORDDEUTSCHE LANDESBANK GIROZENTRALE GERMANY 100 MILLION SWISS FRANCS
OF 225 PUBLIC BONDS WITH EQUITYPURCHASE WARRANTS DUE MAR 16 2004
PRICED AT PAR VIA MERRILL LYNCH CAPITAL AG EACH NOTE CARRIES 60 WARRANTS
EXERCISABLE BETWEEN JAN 18 AND JAN 15 1997 INTO REGISTERED SHARES OF
SWISS BANK CORP STRIKE PRICE 248 FRANCS FEES 275

RHEINISCHE HYPOTHEKENBANK AG GERMANY 100 MILLION MARKS OF
REVERSECOUPON FLOATINGRATE EURONOTES DUE FEB 9 2004 AT ISSUE PRICE
1018 VIA TRINKAUS & BURKHARDT KGAA ANNUAL COUPON FOR FIRST TWO YEARS
525 IN YEARS THREE TO SIX COUPON SEMIANNUAL AT SIXMONTH LIBOR FLAT IN
YEARS SEVEN TO 10 COUPON RETURNS TO FIXED ANNUAL RATE 7 FEES 22

SALOMON INC US 100 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY
2004 AT ISSUE AND FIXED REOFFER PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL
LTD INTEREST PAID SEMIANNUALLY AT SIXMONTH LIBOR LESS 0125 POINT SUBJECT
TO MINIMUM 5125 FEES 0375

SWEDEN SOVEREIGN 2 BILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY
2001 AT ISSUE AND FIXED REOFFER PRICE 9975 VIA CREDIT SUISSE FIRST BOSTON
LTD AND UBS LTD INTEREST PAID QUARTERLY AT THE THREEMONTH LIBOR LESS
0125 POINT CALLABLE QUARTERLY FROM THE FIFTH ANNIVERSARY AT PAR FEES
0175

TOHO ZINC CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED
CONVERTIBLE 0625 NOTES DUE MAR 31 2000 AT PAR VIA LEAD MANAGER NIKKO
BANK SWITZERLAND EACH SWISS FRANC NOTE CONVERTIBLE FROM FEB 22 TO MAR
24 2000 AT EXPECTED 25 PREMIUM OVER CLOSING SHARE PRICE JAN 20 WHEN
TERMS FIXED FEES 1875

TONAMI TRANSPORTATION CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY
PLACED NOTES DUE FEB 3 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 075
COUPON AT PAR VIA BANK VON ERNST & CIE EACH NOTE CARRIES 50 WARRANTS
EXERCISABLE FROM FEB 17 TO JAN 27 1998 TO BUY COMPANY SHARES AT EXPECTED
PREMIUM 25 ABOVE CLOSING SHARE PRICE JAN 26 WHEN TERMS FIXED FEES 1625

YIEH LOONG CO TAIWAN 80 MILLION SWISS FRANCS OF PRIVATELY PLACED
CONVERTIBLE 2 NOTES DUE DEC 31 2000 AT PAR VIA SWISS BANK CORP EACH
NOTE CONVERTIBLE FROM FEB 15 TO DEC 15 2000 AT EXPECTED 6 PREMIUM OVER
CLOSING SHARE PRICE JAN 20 WHEN TERMS FIXED FEES 1875 9401190021
940119 AMERICAN AIR PILOTS AGREE TO TIMETABLE FOR CONTRACT TALKS

FORT WORTH TEXAS AMERICAN AIRLINES AND ITS PILOTS UNION AGREED TO SET A
SPECIFIC TIMETABLE FOR CONTRACT TALKS AND TURN TO MEDIATION AND ULTIMATELY
ARBITRATION IF THE TWO SIDES DON'T AGREE ON A NEW CONTRACT PROMPTLY

THE MOVE IS AN ATTEMPT BY THE TWO SIDES TO AVOID THE YEARLONG NEGOTIATIONS
AND MESSY DENOUEMENT OF AMERICAN'S CONTRACT TALKS WITH FLIGHT ATTENDANTS
WHICH CULMINATED IN A FIVEDAY STRIKE JUST BEFORE THANKSGIVING THE UNIT OF
AMR CORP WHICH WILL ANNOUNCE FOURTHQUARTER AND YEAREND RESULTS TODAY
HAS SAID THE WALKOUT WOULD REDUCE AMR'S FOURTHQUARTER AFTERTAX EARNINGS BY
160 MILLION AND THE COMPANY WILL REPORT A SIGNIFICANT LOSS FOR BOTH
PERIODS IN THE NINE MONTHS THE COMPANY HAD NET INCOME OF 143 MILLION OR
130 A SHARE

IN A JOINT STATEMENT AMERICAN PRESIDENT ROBERT CRANDALL AND RICH LAVOY
PRESIDENT OF THE ALLIED PILOTS ASSOCIATION SAID THEY ENDORSED THE NEW
NEGOTIATING STRATEGY WHICH THEY CALLED FRESH APPROACH MR CRANDALL PUT
FORTH THE IDEA FOR THE APPROACH AFTER APA SUGGESTED WAYS TO IMPROVE ITS
RELATIONSHIP WITH MANAGEMENT

THE PLANS CALLS FOR NEGOTIATIONS LIMITED TO 60 TO 90 DAYS IF NO AGREEMENT
HAS BEEN REACHED THE COMPANY AND APA WOULD ENTER MEDIATION FOR THE SAME
PERIOD IF MEDIATION DOESN'T WORK THE TWO SIDES AGREED TO SUBMIT TO
ARBITRATION

APA'S 10000 PILOT MEMBERS AND ITS BOARD MUST RATIFY FRESH APPROACH BEFORE
CONTRACT TALKS BEGIN AMERICAN'S PILOTS CONTRACT BECOMES AMENDABLE AUG 31
UNDER AIRLINE LABOR LAW THE CONTRACT EXPIRES BUT THE TERMS STAY IN EFFECT
UNTIL THE SIDES AGREE ON A NEW ONE OR UNTIL FEDERAL MEDIATORS DECLARE AN
IMPASSE

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AMR FELL 375 CENTS
TO 69875 9401190020 940119 BT'S SYNCORDIA GETS GLAXO JOB

LONDON SYNCORDIA A SUBSIDIARY OF BRITISH TELECOMMUNICATIONS PLC SAID IT
WON A MULTIMILLIONPOUND CONTRACT TO PROVIDE SERVICES TO GLAXO HOLDINGS PLC
THE INTERNATIONAL PHARMACEUTICALS GROUP BASED IN LONDON

BT SAID SYNCORDIA WHICH IS ITS GLOBAL OUTSOURCING SUBSIDIARY WILL SUPPLY
MANAGED PRIVATE NETWORK SERVICES TO CONNECT SITES IN THE UNITED KINGDOM THE
US AND CANADA THE NETWORK WILL PROVIDE VOICE DATA AND VIDEO SERVICES

THE CONTRACT IS INITIALLY FOR A TWOYEAR PERIOD AND GLAXO WILL SEND
COMMERCIAL AND SCIENTIFIC INFORMATION BETWEEN ITS VARIOUS SITES
9401190019 940119 PUBLIC SERVICE OF COLORADO

DENVER PUBLIC SERVICE CO OF COLORADO SAID IT WILL REDEEM ABOUT 190
MILLION OF BONDS AND 226 MILLION OF PROMISSORY NOTES THE REDEMPTIONS
INCLUDE ALL OUTSTANDING 725 FIRSTMORTGAGE BONDS DUE 2001 AT A PRICE OF
10171 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE 750 SERIES DUE
2002 AT A PRICE OF 10237 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST
THE 7625 SERIES DUE 2003 AT A PRICE OF 10237 PLUS ACCRUED INTEREST
AND THE 825 SERIES DUE 2007 AT A PRICE OF 10325 PLUS ACCRUED INTEREST

THE NATURAL GAS AND ELECTRICITY COMPANY ALSO SAID IT INTENDS TO SELL 212
MILLION OF ITS FIRST COLLATERAL TRUST BONDS TO PROVIDE FUNDS FOR THE
REDEMPTIONS 9401190018 940119 BOISE CASCADE REPORTS 4THQUARTER NET
LOSS NARROWED SLIGHTLY

BOISE IDAHO BOISE CASCADE CORP DOGGED BY POOR MARKETS FOR PAPER
PRODUCTS REPORTED A SLIGHTLY NARROWED FOURTHQUARTER NET LOSS OF 237
MILLION OR 98 CENTS A SHARE

THE BIG FORESTPRODUCTS CONCERN'S NET LOSS FOR THE PERIOD WAS LESS THAN LAST
YEAR'S FOURTHQUARTER LOSS OF 296 MILLION BUT THE PERSHARE LOSS IN THE
LATEST QUARTER ECLIPSED LAST YEAR'S PERSHARE LOSS OF 97 CENTS BECAUSE OF
INCREASED PREFERRED DIVIDENDS IN THE LATEST PERIOD SALES IN THE QUARTER
INCREASED 10 TO 997 MILLION FROM 905 MILLION

THE QUARTERLY LOSS WAS TOWARD THE HIGH END OF ANALYSTS' ESTIMATES WHICH HAD
RANGED FROM 60 CENTS A SHARE TO 105 A SHARE ACCORDING TO ZACKS INVESTMENT
RESEARCH INC NONETHELESS BOISE CASCADE'S STOCK ROSE 75 CENTS TO CLOSE AT
2675 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE

FOR ALL OF 1993 BOISE CASCADE'S NET LOSS NARROWED TO 771 MILLION OR
317 A SHARE AS IMPROVED BUILDINGPRODUCTS EARNINGS PARTIALLY OFFSET
CONTINUED HEAVY LOSSES IN PAPER PRODUCTS LAST YEAR THE COMPANY REPORTED A
NET LOSS OF 2275 MILLION OR 673 A SHARE INCLUDING A 73 MILLION CHARGE
REFLECTING AN ACCOUNTING CHANGE

SALES FOR THE FULL YEAR ROSE 7 TO 396 BILLION FROM 372 BILLION A YEAR
AGO

JOHN B FERY CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS THE COMPANY'S
BUILDINGPRODUCTS SEGMENT TO PERFORM WELL IN 1994 MAINLY BECAUSE OF
INCREASED BUILDING ACTIVITY AND STRONG PRICING BUT HE SAID VERY DIFFICULT
MARKET CONDITIONS IN THE PAPER BUSINESS COULD CONTINUE TO CRIMP THE
COMPANY'S OVERALL RESULTS PAPER PRICES HAVE BEEN DEPRESSED FOR YEARS BY
OVERSUPPLY AND THE SLOW ECONOMY 9401190017 940119 WORLD MARKETS TOKYO
STOCK PRICES LOSE 11 TO PROFITTAKING LONDON SHARES CLIMB ON RATECUT
EXPECTATIONS  A WALL STREET JOURNAL ROUNDUP

TOKYO STOCKS ENDED TUESDAY'S SEESAW SESSION WITH A 11 LOSS FOLLOWING
LATE PROFITTAKING BY JAPANESE INSTITUTIONAL INVESTORS LONDON EQUITIES
POSTED STRONG GAINS ON BETS THAT BRITISH INTEREST RATES ARE POISED TO DROP
FRANKFURT PRICES ALSO SLID 11 ON WORRIES ABOUT WEAK CORPORATE CURRENCY
AND BOND MARKET DEVELOPMENTS

HONG KONG STOCKS JUMPED 21 ON BULLISHNESS ABOUT A SINOUS TRADE
AGREEMENT BUT TAIPEI SHARES SKIDDED 29 AS FINANCIAL ISSUES DROPPED
SHARPLY

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11343 UP 040 REFLECTING HIGHER MARKETS IN ALL REGIONS

CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS
CLOSING AT 21716 UP 535 OR 25 WITH RESORTS WORLD OF MALAYSIA POSTING
A 49 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 11549
DOWN 127 OR 11 WITH BREMER VULKAN OF GERMANY SLIDING 5 IN LOCAL
CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 24833 POINTS
MONDAY TUMBLED 21082 TO 1851455 WHICH ALSO WAS THE INTRADAY LOW IN
TRADING WEDNESDAY THE NIKKEI ROSE 32603 POINTS TO CLOSE THE MORNING
SESSION AT 1884058 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280
MILLION SHARES LITTLE CHANGED FROM 2804 MILLION SHARES A DAY EARLIER
RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 583399 THE TOKYO STOCK PRICE
INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 971 POINTS
MONDAY SURRENDERED 452 TO 151139

THE MAIN BUYERS CONTINUED TO BE OVERSEAS INVESTORS THOUGH THEY WERE LESS
AGGRESSIVE DESPITE A SUPPORTIVE NOMURA RESEARCH INSTITUTE REPORT THAT WEAK
JAPANESE BOND PRICES COULD FUEL A RISE BY THE NIKKEI TO 24000 IN THE NEAR
TERM SOME INVESTORS WEREN'T CONVINCED A COLLAPSING BOND MARKET WAS GOOD
NEWS SAYING RISING BOND YIELDS GENERALLY REFLECT A BELIEF INTEREST RATES
WILL RISE WHICH CAN REDUCE STOCKS' ALLURE AS INVESTORS LOCK IN HIGH YIELDS
ON FIXEDINCOME INVESTMENTS MEANWHILE THE STOCK MARKET LACKED DIRECTION
PENDING PARLIAMENTARY ACTION ON POLITICAL REFORM THOUGH SOME COMMUNICATIONS
AND ELECTRONICS SHARES EXTENDED THEIR RALLY ON TALK OF MULTIMEDIA GROWTH

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 292
POINTS TO 34370 THE FT 30STOCK INDEX ROSE 78 POINTS TO 26233 VOLUME
WAS 9649 MILLION SHARES UP FROM 8083 MILLION SHARES A DAY EARLIER
SMALLER STOCKS MEASURED BY THE FTSE 250 INDEX JUMPED 645 POINTS OR
16 CROSSING THE 4000 THRESHOLD TO END AT 40133 ITS THIRD CONSECUTIVE
RECORD FINISH

INTERESTRATE FUTURES AND GILTS OR BRITISH GOVERNMENT BONDS ALSO RALLIED
WHILE THE FOREIGNEXCHANGE MARKET BEGAN PRICING IN LOWER INTEREST RATES
LAST WEEK'S STOCK LOSSES ON PESSIMISM ABOUT HOW SOON BRITAIN'S BASE LENDING
RATE WOULD BE REDUCED WERE CONSIDERED OVERDONE AND THE MARKET EXTENDED THE
REBOUND THAT BEGAN FRIDAY ONE TRIGGER FOR THE BULLISH MOOD WAS THE POUND'S
PERSISTENT STRENGTH WHICH HAS PROMPTED SPECULATION THAT BRITAIN MUST CUT
RATES TO CHECK ITS CURRENCY OR RISK HARMING EXPORTS AND DAMPING ECONOMIC
RECOVERY YESTERDAY'S BIGGESTGAINING SECTORS WERE THOSE SENSITIVE TO RATES
BUILDING AND CONSTRUCTION MERCHANT BANKING AND UTILITIES

IN FRANKFURT THE DAX 30STOCK INDEX SLUMPED 2354 POINTS TO 211384 THE
DROP WAS BLAMED ON THE WEAK GERMAN MARK AND BONDS CORPORATE FINANCIAL
PROBLEMS AND DIMINISHING HOPES FOR GERMAN INTERESTRATE CUTS THIS WEEK
SENTIMENT ALSO WAS DEPRESSED BY TECHNICAL ANALYSES OF MARKET TRENDS THAT
INDICATED AN ONLY SHORTTERM REBOUND FOLLOWED BY A CONSOLIDATION

IN PARIS AFTER LINGERING IN NEGATIVE TERRITORY IN THE MORNING STOCKS WERE
PUSHED UP BY A BARGAINHUNTING RALLY TO END WITH GAINS IN AMSTERDAM SHARES
ROSE LIFTED BY BUOYANT US AND EUROPEAN MARKETS THOUGH A SOFTER DOLLAR
HURT SOME BLUE CHIPS AND INVESTORS TOOK PROFITS ON SOME BANKS AND INSURERS
WHILE BARGAIN HUNTERS SNAPPED UP FOOD AND BEVERAGE COMPANIES BUT IN MILAN
THE BROADER MARKET INCLUDING ELECTRONICALLY TRADED ISSUES FELL ON
PROFITTAKING AND CONSOLIDATION FOLLOWING THE PREVIOUS DAY'S JUMP

IN MADRID PRICES BOUNCED BACK FROM A WEAK START TO SURGE TO A RECORD
SPURRED BY HOPES FOR A CUT IN GERMAN INTEREST RATES WHICH COULD BE FOLLOWED
BY A REDUCTION IN SPANISH RATES IN STOCKHOLM FOLLOWING A 44 RALLY TO
THREE CONSECUTIVE RECORD HIGHS STOCKS FELL ON PROFITTAKING IN BRUSSELS
SHARES ADVANCED 1 ON FOREIGN BUYING AND GOOD EARNINGS EXPECTED BY BLUECHIP
COMPANIES

IN HONG KONG DESPITE LATE PROFITTAKING THE SOLID GAINS THE MARKET'S
THIRD CONSECUTIVE RISE TO THE HIGHEST LEVEL SINCE JAN 10 BEGAN
ACCUMULATING EARLY PARTLY ON POSITIVE BANK EARNINGS AND A BELATED REACTION
TO THE AGREEMENT BETWEEN THE US AND CHINA ON TEXTILE QUOTAS THAT AVERTED A
TRADE WAR HONG KONG MEDIA PLAYED UP BENEFITS OF THE TEXTILE DEAL AND HOPES
FOR SIMILARLY AVOIDING TENSIONS IN PURSUIT OF CHINA'S WINNING US RENEWAL
OF FAVORABLE TRADE STATUS THE FINANCIAL AND PROPERTY SECTORS EACH SURGED
24 AND THE COMMERCIAL AND INDUSTRIAL SUBINDEX GAINED 22

IN TAIPEI THE MARKET'S BROAD PLUNGE WAS LED BY A 35 DECLINE IN FINANCIAL
ISSUES PROMPTED BY THE TAIWAN GOVERNMENT'S CONSERVATIVE STANCE REGARDING
STOCKS A DAY EARLIER THE CENTRAL BANK GOVERNOR REJECTED A PROPOSED
INCREASE IN THE STOCKINVESTMENT CEILING FOR FOREIGN INSTITUTIONS ALL
SECTORS FELL ELECTRONICS LOST 33 CONSTRUCTION SHED 3 AND TEXTILES
DROPPED 27

IN SEOUL SHARES RALLIED 11 FOLLOWING THREE LOSING SESSIONS IN A ROW AMID
FEARS OF POSSIBLE SELLING BY THE GOVERNMENT'S STABILIZATION FUND

IN SYDNEY EQUITIES DECLINED AS AUSTRALIAN AND OVERSEAS INVESTORS
CONSOLIDATED POSITIONS FOLLOWING THE MARKET'S RECENT STRENGTH IN SINGAPORE
PRICES RECOVERED FROM EARLY WEAKNESS TO CLOSE MIXED IN THIN CAUTIOUS
DEALINGS THE CHOPPY ACTIVITY OF THE PAST WEEK BEGAN TO STEADY IN KUALA
LUMPUR STOCKS ROSE REBOUNDING FROM AN EARLY DECLINE ON BROAD PROFITTAKING
THAT ALSO KNOCKED PRICES LOWER THE PREVIOUS DAY THE MARKET RECOVERED WHEN
SUPPORT FOR BLUE CHIPS AND OTHER SOLID STOCKS ENCOURAGED BROADER BUYING

IN MEXICO CITY STOCKS RALLIED 2 AS THE SOUTHERN REBELS SITUATION REMAINED
QUIET AND INVESTORS FOCUSED ON STRONG CORPORATE EARNINGS ESTIMATES

AMONG CORPORATE DEVELOPMENTS IN TOKYO JAPAN AIRLINES JUMPED 10 YEN OR
16 TO 640 YEN 577 THE CARRIER SAID THAT IT WOULD POST A 270 MILLION
PRETAX LOSS FOR THE YEAR ENDING MARCH 31 AND THAT IT PLANNED TO CUT 5000
JOBS OR 23 OF ITS WORK FORCE AND SLASH CAPITAL SPENDING 48 TO 396
BILLION OVER THE NEXT FOUR YEARS IN A BID TO HOLD DOWN FARES AS
COMPETITIVENESS HAS BEEN HURT BY THE JAPANESE YEN'S STRENGTH AGAINST THE
DOLLAR

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
9401190016 940119 SOUTHERN CALIFORNIA EARTHQUAKE  ALTERED
LANDSCAPE EXPERIENCES OF FLORIDA SAN FRANCISCO SUGGEST WHAT LA IS
IN FOR  DISASTERS DO UNLEASH MONEY BUT IN THE LONGER RUN 
ECONOMIES TAKE A BIG HIT  LIKE BEING IN A CAR ACCIDENT'  BY
WALL STREET JOURNAL STAFF REPORTERS AMANDA BENNETT AND FRED R BLEAKLEY IN
NEW YORK RALPH T KING JR IN SAN FRANCISCO AND JOSE DE CORDOBA IN
MIAMI

IT'S INEVITABLE AFTER A TRAGEDY SUCH AS MONDAY'S LOS ANGELES EARTHQUAKE
PEOPLE LOOK FOR A SILVER LINING AND JUST AS INEVITABLY SOME SEE ONE IN THE
ECONOMY

SURE THE DISASTER TOOK A TERRIBLE TOLL THE THINKING GOES BUT THE CLEANUP
WILL PROVE A BOON TO THE LOCAL ECONOMY MORE JOBS LOTS OF INSURANCE MONEY
FOR REBUILDING HOMES AND BUSINESSES A CHANCE TO CONSTRUCT BETTER HIGHWAYS

WITHIN A MONTH THE ECONOMY WILL BE BOOMING IN THE LOS ANGELES AREA
PREDICTS DOUGLAS WOODWARD AN ECONOMIST AT UNIVERSITY OF SOUTH CAROLINA WHO
STUDIED THE EFFECT HURRICANE HUGO HAD ON SOUTH CAROLINA IN 1989 THEY WILL
GET A REAL BOOST OUT OF IT NO QUESTION ABOUT IT

IT IS LIKE A SHOT OF ADRENALINE THAT MOMENTARILY COUNTERS THE TRAGIC LOSS OF
HUMAN LIFE AND PROPERTY BUT THE OPERATIVE WORD IS MOMENTARILY
BUSINESSPEOPLE AND ECONOMISTS MR WOODWARD INCLUDED AGREE THAT THE SHOT
HAS ONLY TEMPORARY AND UNEVENLY DISTRIBUTED EFFECTS YES NATURAL DISASTERS
DO UNLEASH A FLOOD OF MONEY AND INVESTMENT BUT IF THE EXPERIENCES OF SOUTH
FLORIDA AFTER HURRICANE ANDREW IN 1992 AND SAN FRANCISCO AFTER ITS 1989
EARTHQUAKE ARE TYPICAL THE FLOOD SOON EBBS TO A TRICKLE AND THE WEALTH
LOST BY THE REGIONAL AND NATIONAL ECONOMY IS JUST THAT LOST THERE IS
A GOOD REASON THESE EVENTS ARE CALLED DISASTERS

EVENTUALLY THE COST OF REBUILDING BROKEN BRIDGES AND HIGHWAYS TRANSLATES
INTO HIGHER TAXES OR DIMINISHED TAX REVENUES THE COST OF REPLACING ROOFS
AND WALLS AND CARS AND CARPETS SHOWS UP IN HIGHER INSURANCE PREMIUMS FOR
THE UNINSURED DEPLETED SAVINGS MAY TAKE YEARS TO REPLENISH FOR SOME
ESPECIALLY THE POOR PROPERTY LOST MAY NEVER BE REPLACED

THE WEALTH LOSS IS CONSIDERABLE SAYS DAVID HENSLEY A REGIONAL ECONOMIC
ANALYST WITH SALOMON BROTHERS IN NEW YORK

IN FLORIDA ABOUT TWOTHIRDS OF THE PRIVATE REBUILDING COSTS AFTER HURRICANE
ANDREW WERE INSURED ESTIMATES DAVID WYSS OF DRI/MCGRAW HILL A FORECASTING
FIRM IN LEXINGTON MASS THE GOVERNMENT PICKED UP ABOUT HALF OF THE
REMAINDER AND PEOPLE HAD TO DIP INTO THEIR SAVINGS FOR THE REST HE SAYS

THE RESULT IN THE END THE STATE WAS WORSE OFF HE FIGURES THE AVERAGE
OVERALL LOSS IN ASSETS WAS ABOUT 1500 PER HOUSEHOLD BUT REIMBURSEMENTS
ONLY MADE UP FOR ABOUT 750 PER HOUSEHOLD MR WYSS SAYS WHAT'S MORE THE
ADDITIONAL 2 BILLION IN DIRECT GOVERNMENT RELIEF THAT WAS PUMPED INTO THE
FLORIDA ECONOMY DIDN'T PROVIDE MUCH PERMANENT BENEFIT SINCE IT WENT TO
RESTORING SERVICES PEOPLE WERE ALREADY GETTING BEFORE

IN FACT FEW LOCAL ECONOMIES GET A LONGTERM BOOST FROM NATURAL DISASTERS
BECAUSE REPAIRS ESSENTIALLY JUST RETURN THE COMMUNITIES TO WHERE THEY WERE
BEFORE IN LOS ANGELES WHERE ASSESSMENTS OF THE DAMAGE WIDENED YESTERDAY
WITH SOME SUGGESTING IT MIGHT SURPASS THE 7 BILLION FROM THE 1989 SAN
FRANCISCO QUAKE CONSTRUCTION ACTIVITY HAS BEEN SLACK AND THE REBUILDING
EFFORT WILL SURELY PROVIDE EMPLOYMENT FOR MANY BUT WHILE THAT IS A
SHORTTERM STIMULUS THEY WILL GO BACK TO UNEMPLOYMENT IF BROADER ECONOMIC
CONDITIONS DON'T CHANGE SAYS ANTHONY SHORRIS DEPUTY EXECUTIVE DIRECTOR OF
THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH DEALT WITH THE
AFTERSHOCKS OF NEW YORK'S WORLD TRADE CENTER BOMBING 11 MONTHS AGO

MATTHEW DRENNAN A PROFESSOR OF REGIONAL PLANNING AT CORNELL UNIVERSITY IN
ITHACA NY SEES THE MATTER IN SIMPLE TERMS HE RECALLS THAT DURING THE
DEPRESSION THERE WERE CRAZIES WHO SUGGESTED THAT IF EVERYONE WENT OUT AND
THREW A BRICK THROUGH A WINDOW THE ECONOMY WOULD BE STIMULATED HIS
RESPONSE TO THOSE WHO SEE TOO MUCH OF A SILVER LINING IN TODAY'S NATURAL
DISASTERS THINK OF ALL THE OTHER USEFUL THINGS THE MONEY COULD BE SPENT
ON

WHICH IS THE LESSON OF HURRICANE ANDREW AND THE SAN FRANCISCO EARTHQUAKE
HERE IS A LOOK

HURRICANE ANDREW STRUCK SOUTH FLORIDA ON AUG 24 1992 WITH A FURY THAT
MADE IT THE NATION'S COSTLIEST NATURAL DISASTER IN TERMS OF PROPERTY LOSS
IT INFLICTED SOME 16 BILLION IN DAMAGE ACCORDING TO THE INSURANCE
INFORMATION INSTITUTE AN INDUSTRY GROUP IT DESTROYED 28000 HOMES AND MADE
45000 OTHERS UNINHABITABLE AT LEAST 180000 PEOPLE WERE LEFT HOMELESS

THE STORM HAS NOT BEEN BENEFICIAL TO THE AREA ECONOMY SAYS TAD DE MILLY
THE MAYOR OF HOMESTEAD WHICH FELT THE FULL FORCE OF ANDREW'S SUSTAINED
WINDS OF 140 MILES PER HOUR A YEAR AND A HALF LATER HOMESTEAD IS STILL
REBUILDING ONE OF THE BIGGEST CASUALTIES WAS HOMESTEAD AIR FORCE BASE A
VITAL PART OF THE LOCAL ECONOMY BUT A PERENNIAL CANDIDATE ON LISTS OF
POTENTIAL BASE CLOSINGS TORN APART BY THE STORM HOMESTEAD WAS SHUTTERED
WITH IT WENT 12000 JOBS

SOON PEOPLE WERE LEAVING THE AREA THE CITY'S POPULATION SINCE THE STORM
HAS FALLEN BY A THIRD TO 18000 AND ITS STRUCTURES ARE ONLY 60 TO 70
REBUILT SAYS MR DE MILLY REVENUE FROM THE CITY'S AD VALOREM TAX WHICH IS
BASED ON PROPERTY VALUES IS ABOUT HALF OF WHAT IT WAS BEFORE ANDREW BLEW
THROUGH WE ARE 12 TO 18 MONTHS AWAY FROM WHERE WE WANT TO BE SAYS THE
MAYOR

OF COURSE THERE ARE ALWAYS SOME BUSINESSES THAT SEE AN UPTICK IN DEMAND
AFTER A NATURAL DISASTER FULLY 16 BILLION OF INSURANCE MONEY WAS RELEASED
INTO THE BROADER ECONOMY AFTER ANDREW STRUCK SOME FOUND ITS WAY TO SOUTH
FLORIDA CONSTRUCTION COMPANIES ROOFERS AND AUTO DEALERS AMONG OTHERS

WE BENEFITED FROM THE DISASTER SAYS ANTONIO FRAGA A MALL DEVELOPER WHO
OWNS HOMESTEAD PLAZA THE FIRST MAJOR SHOPPING CENTER TO REOPEN IT IS 99
LEASED MR FRAGA SAYS AND AT HIGHER PRICES THAN BEFORE THE HURRICANE BUT
FOR A SAD UNDERLYING REASON HIS COMPETITION WAS WIPED OUT I'M PRETTY MUCH
IT HE SAYS WHERE THERE USED TO BE TWO CLOTHES STORES NOW THERE IS ONLY
ONE

JOSEPH HAYDEN OWNER OF FLAMINGO FORD ONE OF THE LARGEST CAR DEALERSHIPS IN
HOMESTEAD CALLS ANDREW A NET LOSS THE STORM WIPED OUT WHAT SHOULD HAVE
BEEN A GOOD YEAR IN 1992 HE SAYS HIS BUSINESS IMPROVED IN 1993 BUT NOT
BEYOND THE EXPECTATIONS HE HAD BEFORE THE HURRICANE AND MONEY HE GOT FROM
HIS INSURANCE COMPANY WON'T COVER THE COST OF REBUILDING HIS DEALERSHIP
WHICH WAS LEVELED

NOW MR HAYDEN IS WORRIED ABOUT WHAT WILL HAPPEN WHEN WHAT IS LEFT OF THE
POPULATION FINISHES REPLACING THE CARS DESTROYED BY ANDREW WE HAD A
LIFETIME SUPPLY OF BODYWORK BUT NOW THAT BACKLOG IS OVER HE SAYS IT
GIVES YOU AN UNEASY FEELING

THERE IS CONSIDERABLE DISAGREEMENT OVER THE EFFECTS OF THE STORM FARTHER
NORTH IN MIAMI JOHN ANDERSON PRESIDENT OF THE BEACON COUNCIL A
CIVICBUSINESS ORGANIZATION BELIEVES ANDREW HAS BEEN A NET BENEFIT TO THE
MIAMI REGIONAL ECONOMY

WE HAVE HAD 6 GROWTH IN EMPLOYMENT IN THE 15 MONTHS SINCE THE HURRICANE
HE SAYS OF THE 50000 NEW JOBS CREATED SINCE ANDREW STRUCK ABOUT 20000
ARE IN CONSTRUCTION AND RETAIL SALES MOST OF THESE ARE DUE TO THE
POSTDISASTER REBUILDING EFFORT HE SAYS

MR ANDERSON SAYS THE HURRICANE HAS ALLOWED THE REGION TO REPLACE OUTDATED
INFRASTRUCTURE WITH STATEOFTHEART TECHNOLOGY SUCH AS FIBER OPTICS
POSITIONING IT FOR FUTURE GROWTH IN A HISTORICAL PERSPECTIVE HURRICANE
ANDREW WILL APPEAR AS A BLIP ON THE CHARTS HE SAYS

JOHN GODFREY CHIEF ECONOMIST OF BARNETT BANKS INC IN JACKSONVILLE SCOFFS
AT THE IDEA THAT ANDREW BROUGHT ANY LASTING BENEFIT TO EITHER MIAMI OR
FLORIDA AS A WHOLE ALL THE ACTIVITY REFLECTS REPLACEMENT HE SAYS

IT'S LIKE BEING IN A VERY BAD CAR ACCIDENT EXPLAINS MR GODFREY TWO
YEARS AFTER YOU MIGHT RECOVER AND HAVE A NEW CAR BUT DON'T CALL THAT
PERSON A WINNER

IN THE SAN FRANCISCO AREA THE LOMA PRIETA QUAKE THAT STRUCK ON OCT 17
1989 KILLED 67 PEOPLE AND INJURED ABOUT 600 THE QUAKE'S EPICENTER WAS NEAR
SANTA CRUZ AND IT MEASURED 71 ON THE RICHTER SCALE THERE WAS MORE
PROPERTY LOSS IN DOLLAR TERMS THAN FROM ANY OTHER EARTHQUAKE IN THE NATION'S
HISTORY ROAD REPAIR ALONE WILL COST 13 BILLION

DESPITE DIRE EARLY PREDICTIONS MANY BAY AREA BUSINESSES WERE BACK TO NORMAL
ALMOST IMMEDIATELY BUT THE EFFECTS OF THE EARTHQUAKE WERE NONETHELESS
WIDESPREAD AND IN MANY CASES THEY ARE STILL BEING FELT TODAY CITY HALL IS
STILL SHORED UP INSIDE BECAUSE OF DAMAGE SOME BUILDINGS ARE STILL CLOSED
AND THERE ARE BIG HOLES IN THE FINANCIAL DISTRICT WHERE CONDEMNED BUILDINGS
WERE TORN DOWN AND HAVEN'T YET BEEN REBUILT

WITH ROADS STILL UNDER REPAIR DRIVING INTO SAN FRANCISCO IS NOW MORE
DIFFICULT AND BUSINESS IN PARTS OF THE CITY HAS FALTERED

MERCHANTS IN CHINATOWN SAY THEIR SALES ARE DOWN 30 AND MANY STOREFRONTS
ARE VACANT FOR THE FIRST TIME IN YEARS

CHAMBER OF COMMERCE SAYS PEOPLE STILL DON'T COME COMMERCIAL RENTS ONCE
AMONG THE HIGHEST IN THE CITY HAVE DROPPED SHARPLY IN SOME CASES ALMOST
50

COMMUTING INTO SAN FRANCISCO FROM THE SOUTH STILL TAKES LONGER THAN IT USED
TO BECAUSE OFFRAMPS AND INTERCHANGES HAVEN'T BEEN FIXED TRAFFIC HAS BEGUN
TO SNARL BADLY AT A BIG INTERCHANGE CONNECTING HIGHWAY 101 AND INTERSTATE
280 WHEN WORK FINALLY STARTED THERE LAST WEEK IT WILL PARTIALLY REOPEN LATE
THIS YEAR BUT WON'T BE COMPLETED UNTIL 1996 MEANWHILE COMMUTERS ARE BEING
DETOURED ONTO CITY STREETS

PROPERTY SALES AND VALUES DECLINED IN SAN FRANCISCO'S MARINA DISTRICT THE
RESIDENTIAL AREA HARDEST HIT IMAGES OF MARINA APARTMENTS TILTING AND ABLAZE
WERE REPEATEDLY SHOWN ON TELEVISION AT THE TIME REALESTATE PRICES STILL
HAVEN'T RETURNED TO 1989 LEVELS SAYS KIMBERLEE JEANS PRESIDENT OF PACIFIC
UNION RESIDENTIAL BROKERAGE ALTHOUGH SHE SAYS GENERAL ECONOMIC WEAKNESS IS
AS MUCH OR MORE TO BLAME

AT THE TIME YOU FALL APART AT THE SEAMS BECAUSE YOU DON'T KNOW HOW MUCH
DAMAGE WAS DONE SAYS EILEEN DILLON WHOSE MARINA HOME ULTIMATELY REQUIRED
80000 IN FOUNDATION REPAIRS AFTER THE QUAKE SHE FIGURES HER HOME IS STILL
ONLY WORTH 75 OF ITS 1989 VALUE I NEVER THINK ABOUT IT ANYMORE EXCEPT IF
I CAN'T SLEEP SHE SAYS THEN THE FIRST THING I THINK ABOUT IS
EARTHQUAKES BUT I NEVER WOULD HAVE MOVED

THE EARTHQUAKE'S DESTRUCTION LEFT BEHIND A DIFFERENT LANDSCAPE ALONG THE
CITY'S EMBARCADERO WATERFRONT A FREEWAY OVERPASS DAMAGED BY THE QUAKE WAS
ULTIMATELY TORN DOWN LEAVING A SPECTACULAR VIEW OF THE BAY AT SPLENDIDO
RESTAURANT BUSINESS JUMPED 15 SAYS TJ JACOBBERGER GENERAL MANAGER
BEFORE YOU WOULD LOOK OUT AND SEE CARS NOW WE HAVE A VIEW OF THE OCEAN
TOURISTS ALWAYS WANT A VIEW WHEN THEY'RE DINING HE SAYS

THE DEVASTATION WAS MORE COMPLETE IN SANTA CRUZ A COMMUNITY SOUTH OF SAN
FRANCISCO WHEN THENPRESIDENT BUSH TOURED THE AREA IT STUNNED HIM SAYS
JOSEPH FERRARA PRESIDENT OF THE CITY'S DOWNTOWN ASSOCIATION ITS MAIN
COMMERCIAL STRIP PACIFIC AVENUE FINALLY REOPENED JUST THREE MONTHS AGO
DELAYED BY RED TAPE AND FINANCING WOES STILL WEEKEND TRAFFIC REMAINS AT
60 OF WHAT IT WAS BEFORE THE QUAKE

THE SANTA CRUZ AREA HAS LOST AN ESTIMATED 3000 JOBS IN THE INTERVENING FOUR
YEARS ABOUT 5 OF THE WORK FORCE SAYS JOSEPH WAHED ECONOMIST AT WELLS
FARGO & CO HE SAYS VARIOUS LOCAL ECONOMIC INDICATORS SUCH AS PERSONAL
INCOME CONSTRUCTION ACTIVITY AND RETAIL SALES ARE ALL FLAT OR DOWN BY
THE END OF THE DECADE IT MAY GET BACK TO WHERE IT WAS IN 1988 MR WAHED
SAYS

IT TOOK A MONTH TO GET THE BAY BRIDGE REPAIRED CONSIDERED LIGHTENING 
FAST FOR SUCH A BIG ENGINEERING JOB BUT REPAIRS TO THE REST OF SAN
FRANCISCO'S HIGHWAY SYSTEM HAVE GONE AT A SNAIL'S PACE THERE ARE NEW AND
HORRENDOUS TRAFFIC BOTTLENECKS

MANY OF THE MOST IMPORTANT OFFRAMPS INTO DOWNTOWN SAN FRANCISCO ARE STILL
CLOSED HIGHWAY ENGINEERS HAD PLANNED TO REPAIR SEVERAL MAJOR EXIT RAMPS IN
THE FINANCIAL DISTRICT BUT FOUND A YEAR AFTER THE EARTHQUAKE THAT IT WOULD
COST LESS TO TEAR THEM DOWN AND REBUILD THEY HAVE JUST FINISHED TEARING
THEM DOWN AND ARE NOW ONLY IN THE STUDY STAGE ON HOW TO REBUILD THEM

ON THE OTHER HAND THE AREA SOUTH OF MARKET STREET BECAME MORE DESIRABLE
WHEN THE FREEWAY DEMOLITION CHOKED OFF WHAT HAD BEEN A CONTINUOUS STEAM OF
CARS DISGORGED BY AN OFFRAMP FREEWAYS DIVIDE NEIGHBORHOODS AND POLARIZE
SAYS WILLIAM NORK MARKETING DIRECTOR AT CB COMMERCIAL REAL ESTATE GROUP
INC THEIR ABSENCE TENDS TO HAVE A UNIFYING EFFECT

SIDEWALK CAFES HAVE SPROUTED UP IN THE AREA AND CONDOS THAT USED TO LOOK AT
A FREEWAY NOW HAVE EXPANSIVE VIEWS OF THE BAY THAT'S BECOME ONE OF THE
NICEST PLACES IN TOWN MR NORK SAYS

STILL AL KOBAR A SOUTHERN CALIFORNIA REALESTATE CONSULTANT SAYS ALL OF
THE REBUILDING THAT HAS FOLLOWED THE QUAKE IS VERY SMALL CONSOLATION FOR THE
DESTRUCTION THEY'RE NOT PRODUCTIVE JOBS THEY'RE JUST TRYING TO GET US
BACK TO WHERE WE WERE SAYS MR KOBAR

YOU COULD GO BACK TO KEYNES'S IDEA OF HIRING PEOPLE TO BURY MONEY AND
OTHER PEOPLE TO DIG IT UP HE SAYS IT'S KIND OF A SAD WAY TO EMPLOY
PEOPLE 9401190015 940119 TECHNOLOGY & ENVIRONMENT SUN MICROSYSTEMS
NET POSTED JUMP OF 82 FOR FISCAL 2ND QUARTER

MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID FISCAL SECONDQUARTER
PROFIT NEARLY DOUBLED ON AN 8 INCREASE IN REVENUE IN LINE WITH ANALYSTS'
EXPECTATIONS

NET INCOME FOR THE PERIOD ENDED DEC 26 WAS 438 MILLION OR 46 CENTS A
SHARE UP 82 FROM 241 MILLION OR 23 CENTS A SHARE A YEAR EARLIER WHEN
SUN WAS HIT BY PRODUCT STARTUP COSTS AND SHORTAGES

ALTHOUGH THE RESULTS WERE A LITTLE LIGHTER THAN THE 49 CENTS A SHARE HE
HOPED FOR SALOMON BROTHERS ANALYST JEFF CANIN SAID HE WAS PLEASED WITH
SUN'S GROSS MARGINS FOR THE QUARTER WHICH WERE 39 UP SHARPLY FROM 23 A
YEAR EARLIER

REVENUE ROSE TO 113 BILLION FROM 105 BILLION AND BACK ORDERS REACHED
RECORD LEVELS SUN CITED HIGH DEMAND FOR NEW PRODUCTS ESPECIALLY ITS NEW
SERVERS HIGHEND ZX AND SX GRAPHICS WORKSTATIONS AND SOLARIS SOFTWARE

SEPARATELY SUN SAID MICHAEL LEHMAN SUN'S VICE PRESIDENT AND CORPORATE
CONTROLLER WILL ASSUME THE POST OF CHIEF FINANCIAL OFFICER ON MARCH 1

MR LEHMAN SUCCEEDS KEVIN MELIA WHO IS MOVING TO THE EAST COAST FOR PERSONAL
REASONS MR MELIA WILL CONTINUE TO SERVE AS ACTING PRESIDENT OF ITS SUN
MICROSYSTEMS COMPUTER CORP UNIT UNTIL A SUCCESSOR IS NAMED AND AS A MEMBER
OF SUN'S EXECUTIVE MANAGEMENT GROUP

IN AN INTERVIEW MR MELIA 44 YEARS OLD SAID HE RULED OUT CONTINUING AS
CFO FROM BOSTON BECAUSE IT WOULDN'T BE FAIR EVEN IN THIS AGE OF DESKTOP
VIDEO CONFERENCING EXECUTIVES NEED TO MAKE MANY OF THEIR DECISIONS IN REAL
TIME FACETOFACE AND OFTEN INFORMAL MEETINGS HE SAID

SUN CHIEF EXECUTIVE SCOTT MCNEALY SAID HE AND MR MELIA ARE EVALUATING A
NUMBER OF OPPORTUNITIES FOR HIM TO LEAD WHILE LIVING ON THE EAST COAST
9401190014 940119 WSFS FINANCIAL SEEKS TO CONVERT PREFERRED TO COMMON
SHARES

WILMINGTON DEL WSFS FINANCIAL CORP SAID ITS DIRECTORS WILL SEEK
SHAREHOLDER APPROVAL TO CONVERT ITS EXPENSIVE PREFERRED STOCK TO COMMON
STOCK

THE FINANCIAL SERVICES CONCERN SAID IT PLANS TO CONVERT ITS 10 CONVERTIBLE
PREFERRED STOCK SERIES 1 INTO 647 SHARES OF COMMON STOCK THE PREFERRED
STOCK ISSUED IN 1992 CURRENTLY IS CONVERTIBLE AT ANY TIME AND IS CALLABLE
ON JAN 1 1996 A 248 STAKE IS HELD BY QUADC INC A CHARLOTTESVILLE
VA VENTURECAPITAL COMPANY CHIEF FINANCIAL OFFICER WILLIAM ABBOTT SAID

DIVIDENDS ON THE PREFERRED SHARES NORMALLY PAYABLE BEGINNING MARCH 31
WON'T BE PAID AS A RESULT OF THE PROPOSAL THE COMPANY SAID

WSFS SAID THAT UNDER THE TERMS OF A RECENTLY COMPLETED PRIVATE PLACEMENT OF
32 MILLION OF 11 SENIOR NOTES DUE 2005 THE ANNUAL INTEREST RATE ON THE
NOTES WILL RISE TO 115 AFTER JUNE 30 IF MORE THAN 50 OF THE PREFERRED
SHARES ARE OUTSTANDING THE COMPANY SAID ITS ANNUAL INTEREST COSTS COULD
RISE BY 160000 IF THE NUMBER OF PREFERRED SHARES ISN'T REDUCED

THE CONVERSION REQUIRES A MAJORITY VOTE OF BOTH COMMON AND PREFERRED
STOCKHOLDERS OF WHICH 43 ARE OFFICERS DIRECTORS AND QUADC MR ABBOTT
SAID AS OF SEPT 30 THE COMPANY HAD 53 MILLION SHARES OF COMMON STOCK
OUTSTANDING AND ABOUT 14 MILLION SHARES OF THE PREFERRED 9401190013
940119 BUSINESS BRIEF NIAGARA MOHAWK POWER CORP UTILITY SLATES
ACCELERATION OF WORKFORCE REDUCTIONS

NIAGARA MOHAWK POWER CORP SAID IT WILL ACCELERATE PREVIOUSLY ANNOUNCED
PLANS TO REDUCE ITS WORK FORCE AND STREAMLINE OPERATIONS

THE SYRACUSE NY ELECTRIC AND GAS UTILITY SAID IT WILL LAY OFF ABOUT 900
EMPLOYEES INCLUDING 250 MANAGEMENT POSITIONS DURING THE NEXT SEVERAL
MONTHS THE COMPANY SAID THE LAYOFFS WERE PART OF AN OVERALL EFFORT TO
REDUCE COSTS

PREVIOUSLY NIAGARA MOHAWK PLANNED TO ELIMINATE 1400 POSITIONS BY THE END
OF 1995 AT THE END OF 1993 IT HAD CUT 646 JOBS INCLUDING 203 MANAGEMENT
POSITIONS UNDER THE PROGRAM CURRENTLY THE COMPANY HAS ABOUT 11250
EMPLOYEES

YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING NIAGARA MOHAWK STOCK CLOSED
AT 19375 OFF 125 CENTS JUST ABOVE ITS 52WEEK LOW OF 19125 THE
ANNOUNCEMENT OF ACCELERATED WORKFORCE REDUCTIONS CAME AFTER THE MARKET
CLOSED 9401190012 940119 TUESDAY'S MARKETS DOW INDUSTRIALS ARE
UNCHANGED BONDS ADVANCE  BY STEVEN E LEVINGSTON STAFF REPORTER
OF THE WALL STREET JOURNAL

A LATE WAVE OF SELLING LEFT THE DOW JONES INDUSTRIAL AVERAGE UNCHANGED FROM
MONDAY'S RECORD LEVEL BOND PRICES ROSE AND THE DOLLAR FELL

THE DOW JONES INDUSTRIALS FINISHED AT 387029 STANDARD & POOR'S 500STOCK
INDEX ROSE 095 TO 47425 AND THE NASDAQ COMPOSITE INDEX GAINED 084 TO A
RECORD 79302

STOCK PRICES WERE BUOYED BY SOME UPBEAT EARNINGS REPORTS NOTABLY CHRYSLER'S
BETTERTHANEXPECTED FOURTHQUARTER PROFIT THE NEWS HELPED BOOST ALL THREE
AUTO MAKERS SEVERAL BANKS ALSO REPORTED POSITIVE EARNINGS BUT SOME BANK
STOCKS SLUMPED AS INVESTORS TOOK PROFITS ON THE GOOD NEWS

IT TENDS TO BE A BAD SIGN FOR A STOCK GROUP WHEN YOU GET GOOD EARNINGS NEWS
AND THE STOCK PRICES MOVE DOWN SAYS WALTER C REVIS MARKET ANALYST AT
HAMILTON INVESTMENTS IN CHICAGO IT'S SOMETIMES A SIGN THE GROUP MAY BE
OVERBOUGHT

BOND PRICES ROSE AS COMMODITIES PRICES INCLUDING OIL FELL BUT MARY JANE
MATTS DIRECTOR OF INVESTMENT RESEARCH AT SOCIETY ASSET MANAGEMENT IN
CLEVELAND SAYS THE RECENT WEAKNESS IN OIL PRICES MAY BE ENDING SHE ARGUES
OIL PRICES MAY MOVE UP AS MUCH AS 3 TO ABOUT 17 A BARREL BY THE END OF THE
QUARTER IF THAT HAPPENS IT WILL PRECIPITATE A DRAMATIC CHANGE IN THE WAY
THE FINANCIAL MARKETS FEEL ABOUT INFLATION MS MATTS SAID

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 040 TO 11343

IN MAJOR MARKET ACTION

STOCK PRICES ROSE VOLUME TOTALED 3086 MILLION SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1210 ISSUES ROSE AND 892 FELL

BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN
1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 626

THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17465
MARKS AND 11075 YEN COMPARED WITH 17553 MARKS AND 11106 YEN MONDAY
9401190011 940119 WHO'S NEWS SPECTRAN CORP

SPECTRAN CORP STURBRIDGE MASS JOHN E CHAPMAN 38 YEARS OLD WAS
NAMED TO THE NEWLY CREATED POSITIONS OF EXECUTIVE VICE PRESIDENT AND CHIEF
OPERATING OFFICER OF THIS MAKER OF GLASS OPTICAL FIBERS HE WAS ALSO ELECTED
A DIRECTOR EXPANDING THE BOARD TO EIGHT MEMBERS HE WAS PREVIOUSLY SENIOR
VICE PRESIDENT OF MANUFACTURING AND TECHNOLOGY 9401190010 940119
TECHNOLOGY & ENVIRONMENT INTEL PROFIT ROSE 38 IN 4TH PERIOD ON
REVENUE RISE  BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL
STREET JOURNAL

INTEL CORP SAID FOURTHQUARTER NET INCOME WAS UP 38 BUT SLIGHTLY BELOW
FINANCIAL ANALYSTS' MEAN EXPECTATIONS IT CITED GREATERTHANUSUAL COSTS OF
STARTING UP SEVERAL NEW FACTORY LINES THAT WILL MAKE ITS LATEST
MICROPROCESSORS

THE SANTA CLARA CALIF CHIP MAKER SAID NET INCOME IN THE QUARTER ENDED
DEC 25 WAS 594 MILLION OR 135 A SHARE COMPARED WITH 429 MILLION OR
99 CENTS A SHARE A YEAR EARLIER ANALYSTS' MEAN ESTIMATE FOR PERSHARE NET
INCOME WAS 141 ACCORDING TO ZACKS INVESTMENT RESEARCH INC

INTEL'S REVENUE IN THE QUARTER REFLECTED CONTINUING STRONG GROWTH IN SALES
OF ITS MICROPROCESSORS WHICH DOMINATE THE PERSONALCOMPUTER MARKET RISING
29 TO 239 BILLION FROM 186 BILLION

INTEL SAID IN A RELEASE IT IS ON TRACK TO SHIP SEVERAL MILLION OF ITS NEW
PENTIUM MICROPROCESSORS IN 1994 AS PART OF ITS DRIVE TO BEGIN MOVING PC
USERS OVER TO THE NEW CHIP FROM ITS OLDER 486 CHIPS INTEL HAS INVESTED
HEAVILY IN FACTORIES TO PRODUCE THEM IN PARTICULAR COSTS WERE HIGHER THAN
NORMAL FOR STARTING NEW LINES IN CALIFORNIA AND IRELAND TO PRODUCE PENTIUM
CHIPS INTEL SAID

BUT THOSE STARTUP EXPENSES WILL BEGIN PAYING BACK LATER THIS YEAR SAID
ANALYST MILLARD PHELPS OF HAMBRECHT & QUIST WHEN INTEL'S FACTORIES BEGIN
PRODUCING LARGE VOLUMES OF PENTIUM CHIPS AND NEW VERSIONS OF 486S WHICH
WILL PROVIDE HIGHER PROFIT MARGINS THAN INTEL'S EXISTING LINEUP THE
LONGTERM VIEW IS VERY SOLID FOR THEM BECAUSE OF INTEL'S HEAVY CAPITAL
INVESTMENTS MR PHELPS SAID

FOR THE YEAR INTEL REPORTED THAT NET INCOME MORE THAN DOUBLED TO 230
BILLION OR 520 A SHARE FROM 107 BILLION OR 249 A SHARE IN 1992
REVENUE ROSE 50 TO 878 BILLION FROM 584 BILLION THE YEAREARLIER
PERSHARE FIGURES WERE ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID IN JUNE 1993

INTEL'S STOCK CLOSED AT 6725 A SHARE UP 1 IN NASDAQ STOCK MARKET
TRADING THE COMPANY RELEASED ITS EARNINGS AFTER THE CLOSE OF TRADING
9401190009 940119 TRAVEL FARE CUTS TEST TRAVEL AGENTS' RELIABILITY 
 BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL

YOU MAY NEVER HAVE HAD MORE REASON TO MISTRUST YOUR TRAVEL AGENT

WITH LOWCOST AIRLINES CUTTING FARES TRAVEL AGENTS CAN SAVE CUSTOMERS MONEY
 BUT ONLY BY SACRIFICING PART OF THEIR 10 COMMISSION THUS TRAVELERS MUST
BE PARTICULARLY DISCRIMINATING ABOUT WHO PLANS THEIR TRIPS BUT BECAUSE THE
HERMETIC WORKINGS OF COMPUTERRESERVATION SYSTEMS ARE BEYOND THE KEN OF MOST
FLIERS IT IS DIFFICULT FOR CLIENTS TO KNOW IF THEY ARE WELLSERVED

YOU COULD SPEND ALL YOUR LIFE CHECKING YOUR AGENT'S WORK BUT WHY WOULD YOU
HIRE THEM IF YOU DIDN'T TRUST THEM ASKS ROBERT ATCHISON CORPORATETRAVEL
MANAGER FOR APPLE COMPUTER INC IN AUSTIN TEXAS STILL HE CONCEDES YOU
CAN NEVER BE SURE YOU'RE GETTING THE LOWEST FARE

FOR THEIR PART TRAVEL AGENCIES NOTE THAT THEY OPERATE ON RAZORTHIN MARGINS
EVEN IN THE BEST OF TIMES SOME LOWFARE CARRIERS ARE A DOUBLE WHAMMY THEY
GENERATE LESS COMMISSION REVENUE AND THEY REQUIRE MORE WORK BECAUSE THEY
DON'T PARTICIPATE IN COMPUTERRESERVATION SYSTEMS AGENTS MUST CALL THEM
IF FARES ARE CUT IN HALF THAT REPRESENTS A 50 CUT IN COMMISSIONS SAYS
DAVID PERELMAN PRESIDENT OF DMS TRAVEL INC IN NEW YORK IT'S A DISASTER
BUT HIS AGENCY SEEKS OUT THE LOWEST FARES HE SAYS BECAUSE WITHOUT REPEAT
CLIENTS IT COULDN'T STAY IN BUSINESS

A JENKINS & ASSOCIATES MOUNTAINVIEW CALIF AUDITS TRAVEL AGENCIES FOR
COMPANIES WHO WANT TO LEARN AMONG OTHER THINGS HOW OFTEN THEIR AGENCIES
GET THEM THE LOWEST FARES

THE AVERAGE ERROR RATE ON A MONTHLY AUDIT HAS RISEN TO 15 FOR AIRLINE
TRANSACTIONS COMPARED WITH 6 THREE YEARS AGO SAYS ANDRE JENKINS THE
FIRM'S DIRECTOR OF QUALITY THE AUDIT ITSELF PROBABLY UNDERSTATES THE
ERRORS BECAUSE THE AGENCY KNOWS WHEN IT IS BEING REVIEWED AND PRESUMABLY
TRIES TO MINIMIZE MISTAKES

MANY TRAVEL AGENCIES NOW USE SOFTWARE THAT SUPPOSEDLY PLUCKS OUT THE LOWEST
FARES BUT AUTOMATION CAN'T REPLACE TRAINING MR JENKINS SAYS TRAINING IS
PARTICULARLY CRUCIAL NOW BECAUSE COMPUTERRESERVATION SYSTEMS ARE SO COMPLEX
 AND BECOMING EVEN MORE SO DEVELOPED BY AIRLINES THESE SYSTEMS ARE WEBS
OF INTERLOCKING DATABASES THAT CAN SPIN OUT INFORMATION ON FLIGHTS AND
FARES BUT SIFTING THROUGH IT REQUIRES TIME AND SKILL

TRAVELAGENCY MANAGEMENTS TAKE PEOPLE OFF THE STREET PUT THEM IN FRONT OF
A COMPUTERRESERVATION SYSTEM AND TELL THEM TO PUNCH A FEW BUTTONS MR
JENKINS SAYS

AGENCY EXECUTIVES DISMISS SUGGESTIONS THAT THEIR INDUSTRY DENIES TRAVELERS
THE LOWEST PRICES THE PRACTICE WOULD BE SELFDEFEATING THEY SAY BECAUSE
AGENCIES NEED REPEAT BUSINESS TO SURVIVE WITH 32200 RETAIL LOCATIONS
NATIONWIDE TRAVELERS WHO DISCOVER THEY HAVE BEEN GOUGED OR EVEN THINK SO
CAN EASILY GO ELSEWHERE

NO AGENT IS GOING TO SELL HIS CLIENT DOWN THE RIVER FOR A FEW PIECES OF
SILVER IT JUST DOESN'T MAKE BUSINESS SENSE SAYS PAUL RUDEN SENIOR VICE
PRESIDENT OF THE AMERICAN SOCIETY OF TRAVEL AGENTS

AGENTS SELL 85 OF ALL AIRLINE TICKETS AND DEPEND HEAVILY ON AIR TRAVEL FOR
THEIR OWN REVENUE OVER THE YEARS LOWFARE OPPORTUNITIES GENERALLY WEREN'T
AN ISSUE BECAUSE TICKET PRICES AMONG CARRIERS WERE SO SIMILAR

BUT THAT IS CHANGING NOW THAT THE AIRLINE INDUSTRY HAS BEGUN TO SPLINTER
INTO TWO CAMPS FULLSERVICE MAJORS AND LOWCOST DISCOUNTERS WITH
NOFRILLS SOUTHWEST AIRLINES PLUNGING INTO NEW MARKETS NEW REGIONAL
OPERATORS LIKE VALUJET AIRLINES IN ATLANTA AND GRAYBEARDS LIKE CONTINENTAL
AIRLINES INITIATING A LOWFARE SERVICE CALLED CALITE THERE IS MUCH LESS
LOCKSTEP PRICING

CONSIDER THE CHICAGONEWARK NJ ROUTE A ROUNDTRIP FARE COSTS 1120 ON
UAL CORP'S UNITED AIRLINES OR AMR CORP'S AMERICAN AIRLINES BUT KIWI
INTERNATIONAL AIR LINES WHICH BEGAN OPERATIONS TWO YEARS AGO CHARGES 238
WHEN AN EMPLOYEE FROM INTERNATIONAL BUSINESS MACHINES CORP IN CHICAGO ASKED
HIS COMPANY'S TRAVEL AGENCY AMERICAN EXPRESS CO TO BOOK HIM ON KIWI THE
AGENT SAID NO BECAUSE KIWI DOESN'T ACCEPT THE AMERICAN EXPRESS CARD THE
EMPLOYEE FLEW AMERICAN AIRLINES INSTEAD

KIWI DOES ACCEPT THE AMERICAN EXPRESS CARD ROB KULAT A KIWI SPOKESMAN
SAYS SOME TRAVEL AGENTS INCLUDING AMERICAN EXPRESS IN THIS CASE IGNORE
KIWI BECAUSE THE AGENTS GET BONUSES FROM MAJOR CARRIERS THAT REWARD AGENTS
WITH HIGHER COMMISSIONS FOR BOOKING TRAVELERS ON THOSE LARGE AIRLINES
DESPITE KIWI'S LOWFARE PRODUCT MR KULAT SAYS AGENTS ARE STILL THE
GATEKEEPERS TO THE INDUSTRY

CHRISTINE LEVITE A SPOKESWOMAN FOR AMERICAN EXPRESS SAYS IT'S AGAINST
OUR POLICY TO GO OUTSIDE WHAT THE CLIENT REQUESTS IN THIS CASE IT SOUNDS
LIKE THE AGENT MADE AN ERROR AMERICAN EXPRESS THE NATION'S LARGEST TRAVEL
AGENCY WILL ONLY FAVOR PREFERRED SUPPLIERS IF THE CUSTOMER DOES NOT EXPRESS
AN AIRLINE PREFERENCE MS LEVITE SAYS

WHILE LOWCOST CARRIERS HAVE MADE INROADS AVERAGE DOMESTIC ROUNDTRIP AIR
FARES STILL INCREASED BY 5 LAST YEAR TO 555 COMPARED WITH YEARAGO
FIGURES ACCORDING TO TOPAZ ENTERPRISES INC IN PORTLAND ORE WHICH
MONITORS PRICES BUT MANY AGENTS ARE UNDERSTANDABLY WORRIED THEY SAY IT
COSTS THEM 25 TO 30 TO BOOK A TICKET WHICH IS MORE THAN THE COMMISSION
THEY EARN ON LOWFARE FLIGHTS

UNDER 250 FOR A TICKET AND YOU'RE HURTING SAYS ROBERT THALER PRESIDENT
OF SEA AND AIR TRAVEL INC IN FAIRLAWN NJ HE SAYS HE BOOKS CHEAP TICKETS
BUT FINDS WAYS TO PARE SERVICE WHEN THE AGENT RECENTLY BOOKED A TWOFORONE
SPECIAL FOR 125 ON SOUTHWEST FOR A COUPLE IN SAN DIEGO HE TOLD HIS CLIENTS
TO PICK UP THE TICKETS AT THE AIRPORT IT DIDN'T PAY FOR ME TO WRITE THE
TICKETS AND MAIL IT OUT TO THEM MR THALER SAYS

INDEED PASSENGERS WHO HAVE BEEN SPOILED BY THEIR FRIENDLY AGENT SHOULD
BRACE THEMSELVES FOR CHANGES IN SOME CASES AGENT SURCHARGES ARE ALREADY
BEING ADDED ON LOWPRICED TICKETS ALICE LAMBIE OWNER OF APEX TRAVEL
SERVICE IN THE MILWAUKEE AREA CHARGES CUSTOMERS 10 ON TICKETS UNDER 100
WITHOUT SUCH A CHARGE SHE SAYS VOLUME OF LOWPRICE TICKETS WILL DRIVE ME
INTO THE GROUND

AGENTS MAY ALSO START CHARGING FEES TO REBOOK TICKETS AND SOME ARE EVEN
CONSIDERING REFUSING TO BOOK TICKETS ON LOWFARE CARRIERS ALTOGETHER

IF THE AIRLINE CAN FIGURE OUT A WAY TO OFFER A 99 FARE PROFITABLY THAT'S
GOOD NEWS FOR THE AIRLINE AND GOOD NEWS FOR THE TRAVELER SAYS STEVE GLENN
PRESIDENT OF EXECUTIVE TRAVEL INC IN LINCOLN NEB BUT IT'S THE AGENT
WHO'S THE MOST VULNERABLE

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 9401190008 940119 CMS TO BUILD
PLANT IN INDIA

DEARBORN MICH CMS ENERGY CORP'S INDEPENDENT POWER UNIT CMS GENERATION
CO IS BUILDING A 420 MILLION LIGNITEFIRED ENERGY PLANT IN INDIA TO
PROVIDE 250 MEGAWATTS OF ELECTRICAL POWER TO THE STATE OF TAMIL NADU
CONSTRUCTION IS EXPECTED TO BEGIN LATER THIS YEAR WITH COMMERCIAL OPERATION
TO START IN 1997

CMS GENERATION CO WILL BE THE PROJECT MANAGER AND PLANT OPERATOR AND WILL
HOLD A 40 OWNERSHIP INTEREST OTHER PARTNERS IN THE PROJECT INCLUDE ST
POWER SYSTEMS ROCKVILLE MD AND NEYVELI LIGNITE CORP NEYVELI INDIA
THE INTERNATIONAL FINANCE CORP WASHINGTON DC IS ALSO EXPECTED TO
PARTICIPATE IN THE PROJECT 9401190007 940119 BUSINESS BRIEF US
BANCORP AGREEMENT REVISED TO BUY JOHNSTOWN SAVINGS BANK

US BANCORP SAID IT REACHED A REVISED AGREEMENT TO ACQUIRE JOHNSTOWN
SAVINGS BANK IN A CASH AND STOCK DEAL

UNDER A COMPLEX FORMULA USBANCORP IN JOHNSTOWN PA SAID IT WILL PAY
1013 IN CASH AND A FRACTION OF ITS COMMON STOCK FOR EACH JOHNSTOWN
SAVINGS' SHARE THE FRACTION WILL BE BASED ON A FORMULA RELATING TO THE
AVERAGE CLOSING PRICE OF USBANCORP'S STOCK 10 DAYS BEFORE THE TRANSACTION
CLOSES BASED ON THE AVERAGE CLOSING PRICE OVER THE PAST 10 DAYS THE
TRANSACTION'S VALUE WOULD BE 436 MILLION OR 2248 A SHARE

JOHNSTOWN SAVINGS WHICH HAS 355 MILLION IN ASSETS CAN TERMINATE THE
AGREEMENT IF THE AVERAGE CLOSING PRICE OF USBANCORP IN THE 10 DAYS BEFORE
THE CLOSING IS LESS THAN 2050 A SHARE JOHNSTOWN ALSO CAN SOLICIT OTHER
BIDS UNTIL FEB 17

USBANCORP HAS 12 BILLION IN ASSETS 9401190006 940119 BUSINESS BRIEF 
BORLAND INTERNATIONAL INC THIRDQUARTER NET FELL SHORT OF ESTIMATES BY
ANALYSTS

BORLAND INTERNATIONAL INC SCOTTS VALLEY CALIF REPORTED THIRDQUARTER
PROFIT OF 418000 OR TWO CENTS A SHARE FALLING FAR SHORT OF ANALYSTS'
AVERAGE ESTIMATES OF ABOUT 11 CENTS

THE SOFTWARE MAKER ATTRIBUTED THE RESULTS LARGELY TO LOWER SALES IN EUROPE
OF ITS DBASE SOFTWARE AS CUSTOMERS HELD OFF PURCHASES IN ANTICIPATION OF A
FORTHCOMING VERSION TAILORED FOR MICROSOFT CORP'S WINDOWS OPERATING SYSTEM

IN THE YEAREARLIER PERIOD BORLAND HAD A LOSS OF 613 MILLION OR 234 A
SHARE BECAUSE OF COSTS ASSOCIATED WITH LAYOFFS AND OTHER RESTRUCTURING
CHARGES

QUARTERLY SALES ROSE 71 TO 1117 MILLION FROM 1043 MILLION A YEAR
EARLIER PHILIPPE KAHN CHIEF EXECUTIVE OFFICER SAID BORLAND FOCUSED IN THE
QUARTER ON GAINING MARKET SHARE AND HELPING CUSTOMERS UPSIZE THEIR
COMPUTING TASKS FROM INDIVIDUAL PERSONAL COMPUTERS TO MACHINES CONNECTED IN
SOCALLED CLIENTSERVER NETWORKS 9401190005 940119 REVIEW & OUTLOOK
EDITORIAL DISCOMFORT LEVEL

TRYING TO MAKE SENSE OF THE WITHDRAWAL BY DEFENSE NOMINEE BOBBY RAY INMAN
YESTERDAY WE WERE REMINDED OF THE ODD ENCOUNTER THAT CBS'S DAN RATHER HAD
ON THE STREETS OF NEW YORK A FEW YEARS AGO MR RATHER'S ASSAILANT ASKED THE
BIZARRE QUESTION KENNETH WHAT'S THE FREQUENCY MR INMAN'S EXPLANATIONS
ARE SIMILARLY PERPLEXING

BY NOW OF COURSE A CERTAIN LEVEL OF HIGHWIRE WEIRDNESS SEEMS TO BE ROUTINE
IN THE CLINTON PRESIDENCY THIS ADMINISTRATION RARELY DOES A SWAN DIVE WHEN
A TRIPLEBACKWARDSOMERSAULT WITH A TWIST CAN BE TRIED INSTEAD SO WE GET
ATTORNEY GENERAL CANDIDATES WITH NANNY PROBLEMS DEATHDEFYING CONGRESSIONAL
VOTES STONEWALLING ON A SUICIDE BUNGEE JUMPS INTO SOMALIA AND HAITI AND
NOW A DEFENSE NOMINEE WHO ACCEPTS THE JOB BY PUBLICLY CONDESCENDING ABOUT
HIS COMFORT LEVEL WITH THE PRESIDENT AND THEN LEAVES IT A MONTH LATER
DEPLORING MODERN MCCARTHYISM

LET US STIPULATE THAT MR INMAN HAS A POINT THAT SOMETHING ROTTEN HAS
HAPPENED TO THE NOMINATION PROCESS IN WASHINGTON THOUGH IT HARDLY STARTED
WITH THE CLINTON YEARS THESE COLUMNS DEPLORED THE PERSONAL ATTACKS THAT
WERE MADE AGAINST REAGAN NOMINEES AND WE'VE DONE THE SAME WHEN ETHICS
TRIVIA HAS BEEN USED AGAINST CLINTON APPOINTEES THE FEMINISTNADERITE
LIBERALS WERE THE ONES WHO WENT AFTER ZOE BAIRD WHILE WE DEFENDED HER AND
THE SAME CROWD WANTED MR INMAN TO SHED SOME BLOOD FOR HIS OWN NANNY TAX
PROBLEMS MR INMAN IS ALSO SURELY RIGHT THAT THE MEDIA ESPECIALLY WHEN IT
HEADS OFF IN A PACK CAN TOO EASILY DISPARAGE OR DESTROY REPUTATIONS

YET WHAT IS SO STRIKING ABOUT MR INMAN'S COMPLAINT IS HOW MILD WERE THE
CRITICISMS OF HIM COMPARED WITH THE STANDARDS SET OVER THE PAST 12 YEARS
WHILE WE DON'T KNOW WHAT MIGHT HAVE EMERGED FROM CONGRESSIONAL HEARINGS OR
MAY BE HIDDEN IN FBI REPORTS MR INMAN HIMSELF NOTED YESTERDAY THAT HE'D
PROBABLY HAVE BEEN CONFIRMED BY THE SENATE ARMED SERVICES COMMITTEE BY A
UNANIMOUS VOTE HIS REPUBLICAN ENDORSERS INCLUDED BY HIS OWN ACCOUNT
DICK CHENEY AND BOB GATES AND SENATORS JOHN WARNER JOHN MCCAIN AND KAY
HUTCHISON THIS IS A LOT BETTER THAN JOHN TOWER EVER DID AMONG DEMOCRATS

THESE REPUBLICAN ENDORSEMENTS MAKE MR INMAN'S ATTACK ON BOB DOLE ESPECIALLY
PUZZLING MR INMAN SAYS HE HEARD INDICATIONS FROM FRIENDS ON THE
REPUBLICAN SIDE OF THE AISLE THAT MR DOLE HAD TARGETED HIM BUT HE OFFERS
NO EVIDENCE IN PUBLIC MR DOLE HAD ACTUALLY PRAISED HIM AS A VERY GOOD
PERSON FOR THE JOB THOUGH HE DID QUIP THAT MAYBE MR INMAN WAS A GERGEN
REPUBLICAN AND WOULD HAVE TO ANSWER SOME TOUGH QUESTIONS ABOUT HIS
BUSINESS DEALINGS FOR HIS PART MR DOLE RESPONDED YESTERDAY THAT I HAVE
NO IDEA WHAT'S GOTTEN INTO BOBBY INMAN

MR INMAN'S STORY BECOMES 100 WEIRD HOWEVER WHEN IT LINKS MR DOLE TO NEW
YORK TIMES COLUMNIST WILLIAM SAFIRE IN A CONSPIRACY CITING UNSPECIFIED
REPORTS MR INMAN ALLEGES A TRADE BETWEEN MR SAFIRE AND SENATOR DOLE
THAT IF SENATOR DOLE WOULD TURN UP THE HEAT ON MY NOMINATION THAT SAFIRE
WOULD TURN UP THE HEAT ON WHITEWATER DEVELOPMENT BUT MR DOLE HARDLY
NEEDED ANYONE TO RAISE SUSPICIONS SINCE THE WHITE HOUSE HAS BEEN DOING SUCH
A GOOD JOB ALL BY ITSELF INDEED ONE LOGICAL EXPLANATION OF MR INMAN'S
WITHDRAWAL IS THAT HE DECIDED THAT THE CLINTON ADMINISTRATION WAS A SHIP
TAKING ON TOO MUCH WHITEWATER

AND WHILE MR SAFIRE DID GIVE MR INMAN A ROUGH TIME IN PRINT THAT CRITIQUE
WAS BALANCED BY A GENERALLY FAWNING RECEPTION ON CAPITOL HILL AND POSITIVE
ASSESSMENTS ELSEWHERE IN THE PRESS IT IS NOT AS IF REPORTERS SEARCHED HIS
VIDEO RENTALS AS THEY DID ROBERT BORK'S THE SAFIREDOLE CONSPIRACY THEORY
REMINDS US OF WHAT IT WAS LIKE TO BE ACCUSED OF MURDERING VINCENT FOSTER
THIS LOOKS LIKE A SIMILAR ATTEMPT TO DIVERT ATTENTION FROM OTHER POSSIBLE
MOTIVES FOR MR INMAN'S WITHDRAWAL WE DON'T PRETEND TO KNOW WHAT THOSE
MOTIVES MIGHT BE BUT HIS EXPLANATIONS SO FAR ONLY DEEPEN THE MYSTERY

THE PROBLEM FOR THE COUNTRY IS THAT AN IMPORTANT JOB AT DEFENSE REMAINS
UNFILLED AT AN IMPORTANT TIME THE SHAKEOUT IN MR CLINTON'S NATIONAL
SECURITY TEAM HAS BEEN UNPARALLELED FOR ANY RECENT PRESIDENT'S FIRST YEAR A
FACT THAT GETS NOTICED IN DANGEROUS PLACES LIKE NORTH KOREA MR CLINTON
COULD PLUG THIS LEAKING IMAGE WITH A DEFENSE CHOICE LIKE JAMES WOOLSEY WHO
GETS HIGH MARKS AS CIA DIRECTOR BUT SINCE THAT IS THE SIMPLE SENSIBLE
CHOICE WE SUPPOSE IT WOULD BE TOO EASY FOR THIS TANGLED PRESIDENCY
9401190004 940119 AND AN ALTERNATIVE TO CHAPTER 11  BY OLIVER
HART

THE CURRENT ATTEMPT BY FEDERATED DEPARTMENT STORES TO ACQUIRE RH MACY &
CO IN BANKRUPTCY AND THEREBY WIN THE RIGHT TO FILE A REORGANIZATION PLAN
OF ITS OWN HAS HIGHLIGHTED THE INADEQUACIES OF CHAPTER 11 INCUMBENT
MANAGEMENT'S ABILITY TO CONTROL THE AGENDA IN CHAPTER 11 IS A REAL PROBLEM
DISCUSSED IN THE ARTICLE THAT APPEARS ABOVE

BUT CHAPTER 11 HAS OTHER PROBLEMS TOO CHAPTER 11 MIXES TWO DECISIONS
FIRST WHAT SHOULD HAPPEN TO A BANKRUPT COMPANY SHOULD IT BE REORGANIZED
SOLD OR LIQUIDATED SECOND HOW SHOULD THE COMPANY'S VALUE BE DIVIDED AMONG
VARIOUS CREDITOR CLASSES AND SHAREHOLDERS

THIS MIXING OF DECISIONS LEADS TO A GREAT DEAL OF SQUABBLING AND MAKES
CHAPTER 11 VERY SLOW THE LARGEST BANKRUPTCY CASES TAKE AN AVERAGE OF TWO TO
THREE YEARS THIS DELAY IS EXPENSIVE IN LEGAL FEES AND ADMINISTRATIVE COSTS
AND CAN ALSO CAUSE A DECLINE IN A COMPANY'S VALUE EASTERN AIRLINES SUFFERED
LOSSES OF ABOUT 16 BILLION IN CHAPTER 11 BEFORE EVENTUALLY BEING
LIQUIDATED

CHAPTER 11 HAS THE LAUDABLE GOAL OF PRESERVING HEALTHY COMPANIES BUT THERE
IS A WAY TO ACHIEVE THAT GOAL WITHOUT INCURRING CHAPTER 11'S COSTS TOGETHER
WITH PHILIPPE AGHION OF OXFORD AND JOHN MOORE OF THE LONDON SCHOOL OF
ECONOMICS I HAVE PROPOSED THE FOLLOWING MARKETBASED ALTERNATIVE TO CHAPTER
11

ACCORDING TO THIS PROPOSAL WHEN A COMPANY GOES BANKRUPT IT IS PUT UP FOR
AUCTION HOWEVER IN CONTRAST TO A STANDARD AUCTION BIDDERS CAN MAKE
NONCASH BIDS AS WELL AS CASH BIDS WITH A NONCASH BID A BIDDER OFFERS TO
BUY THE COMPANY USING AS PAYMENT SECURITIES IN THE POSTBANKRUPTCY COMPANY
A NONCASH BID THEREFORE ALLOWS FOR THE POSSIBILITY OF REORGANIZATION

SUPPOSE INCUMBENT MANAGEMENT BELIEVES THEY ARE THE BEST PEOPLE TO RUN THE
COMPANY THEY WANT TO RETAIN THEIR JOBS BUT DO NOT HAVE THE CASH TO BUY THE
COMPANY OUTRIGHT UNDER OUR PROPOSAL THEY COULD BID BY OFFERING SHARES IN
THE POSTBANKRUPTCY COMPANY

ANOTHER POSSIBILITY WOULD BE FOR INCUMBENT MANAGEMENT TO MAKE A BID
COMPRISING CASH AND SHARES WHERE THE CASH IS RAISED BY BORROWING AGAINST
THE COMPANY'S FUTURE PROFIT AN OUTSIDE MANAGEMENT TEAM SUCH AS FEDERATED
COULD MAKE THE SAME KINDS OF BIDS AND OF COURSE ANYONE IS FREE TO MAKE A
PURELY CASH BID

THE DIFFICULTY IN EVALUATING THESE BIDS IS THAT THEY ARE APPLES AND ORANGES
HOW DOES ONE COMPARE A CASH BID TO A NONCASH BID OR ONE NONCASH BID TO
ANOTHER THE ANSWER IS TO TRANSFORM THE FORMER CREDITORS INTO SHAREHOLDERS
VIA A DEBTEQUITY SWAP AND THEN LET THEM VOTE ON THE BIDS

ONE WAY TO CARRY OUT THIS SWAP IS TO GIVE ALL THE SHARES INITIALLY TO SENIOR
CREDITORS HOWEVER JUNIOR CREDITORS AND SHAREHOLDERS DON'T GO AWAY
EMPTYHANDED AFTER THE BIDS ARE ANNOUNCED JUNIOR CREDITORS HAVE THE RIGHT
TO BUY OUT THE SENIOR CREDITORS FOR THE PRORATA AMOUNT THE SENIOR CREDITORS
ARE OWED SIMILARLY FORMER SHAREHOLDERS HAVE THE RIGHT TO BUY THEIR SHARES
BACK FOR THE PRORATA AMOUNT ALL CREDITORS ARE OWED THE MERIT OF THIS
SCHEME IS THAT IT PRESERVES THE SENIORITY OF CLAIMS WITHOUT REQUIRING AN
EXTERNAL VALUATION OF THE COMPANY

ONCE THE DEBTEQUITY SWAP HAS BEEN COMPLETED THE NEW SHAREHOLDERS VOTE ON
WHICH BID TO ACCEPT IF THE VOTE GOES IN FAVOR OF A CASH BID THE COMPANY IS
IN EFFECT LIQUIDATED OR SOLD IF A NONCASH BID WINS THEN THE COMPANY IS IN
EFFECT REORGANIZED INDEPENDENT EXPERTS COULD EVALUATE THE BIDS BUT THEIR
RECOMMENDATIONS WOULDN'T BE BINDING THE WHOLE PROCESS MIGHT TAKE AROUND
FOUR MONTHS THREE MONTHS FOR BIDS TO COME IN AND ONE MONTH FOR RIGHTS TO
BE EXERCISED AND THE VOTE TAKEN THIS MAY BE TOO QUICK TO SETTLE ALL CLAIMS
DISPUTES BUT THE REMAINDER CAN BE RESOLVED AFTER THE COMPANY HAS EMERGED
FROM BANKRUPTCY

THE ADVANTAGE OF OUR PROPOSAL IS THAT IT LEAVES THE DECISION OVER THE
COMPANY'S FUTURE WHETHER TO LIQUIDATE SELL OR REORGANIZE AND IF
REORGANIZE WHO THE NEW MANAGEMENT TEAM SHOULD BE IN THE HANDS OF THE
NEW OWNERS AND AT THE MOMENT OF THE VOTE THESE OWNERS' INTERESTS ARE
ALIGNED SINCE THEY ARE ALL SHAREHOLDERS THERE IS NO SQUABBLING OVER THE
DIVISION OF THE COMPANY'S VALUE SINCE THE PROCEDURE DETERMINES THIS
MECHANICALLY THROUGH THE AUTOMATIC DEBTEQUITY SWAP

LIKE CHAPTER 11 OUR PROCEDURE GIVES CLAIMHOLDERS THE OPTION OF MAINTAINING
THE COMPANY AS A GOING CONCERN IF THE COMPANY'S BAD FORTUNES ARE THE RESULT
OF BAD LUCK RATHER THAN BAD MANAGEMENT UNLIKE CHAPTER 11 THE PROCEDURE IS
CHEAP QUICK AND AVOIDS CONFLICTS OF INTEREST ALSO THE PROCEDURE ISN'T
BIASED IN FAVOR OF INCUMBENT MANAGEMENT IT WOULD ALLOW FEDERATED TO MAKE A
BID FOR MACY'S DIRECTLY WITHOUT HAVING TO BUY MACY'S DEBT FIRST MACY'S
NEXT MANAGEMENT TEAM WOULD THEN BE DECIDED BY A SIMPLE VOTE

MR HART IS A PROFESSOR OF ECONOMICS AT HARVARD UNIVERSITY THIS ARTICLE
REFLECTS SOME MATERIAL COVERED IN THE OCTOBER 1992 ISSUE OF JOURNAL OF LAW
ECONOMICS AND ORGANIZATION SEE RELATED ARTICLE MACY'S DEBTOR
PARADISE WSJ JAN 19 1994 9401190003 940119 PRUDENTIAL TO SUSPEND
NEW ACCOUNTS IN TEXAS UNDER ACCORD ON PARTNERSHIPS  BY MICHAEL
SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK IN A SETTLEMENT WITH TEXAS REGULATORS PRUDENTIAL SECURITIES
INC AGREED TO BE TEMPORARILY SUSPENDED FROM OPENING UP NEW BROKERAGE
ACCOUNTS IN TEXAS AND TO PAY THE STATE 15 MILLION

THE UNUSUAL ACCORD WHICH FOLLOWS A SIXMONTH INVESTIGATION BY TEXAS INTO
THE PARTNERSHIPSALES PRACTICES OF PRUDENTIAL'S MOST TROUBLESOME BRANCHES
MARKS ONE OF THE RARE TIMES REGULATORS HAVE SUSPENDED NEWBUSINESS ACTIVITY
OF A MAJOR BROKERAGE FIRM

THE SETTLEMENT CAPS A BROAD INVESTIGATION BY FEDERAL AND STATE REGULATORS
INTO ALLEGATIONS OF IMPROPER PARTNERSHIP SALES AT PRUDENTIAL TEXAS WAS THE
ONLY STATE THAT DIDN'T PARTICIPATE IN PRUDENTIAL'S OCTOBER SETTLEMENT OF
FRAUD CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATE
REGULATORS IN THAT ACCORD PRUDENTIAL AGREED TO PAY EACH OF THE STATES
500000 IN ADDITION TO SETTING UP A REPARATIONS FUND FOR INVESTORS OF AT
LEAST 330 MILLION WITHOUT ADMITTING OR DENYING WRONGDOING

THE KEY MESSAGE HERE IS THAT MAJOR WALL STREET FIRMS WILL BE TREATED IN THE
SAME FASHION AS SMALLER BROKERAGE HOUSES DENISE VOIGT CRAWFORD TEXAS
SECURITIES COMMISSIONER SAID IN AN INTERVIEW

PRUDENTIAL THE NATION'S FOURTHLARGEST SECURITIES FIRM STILL FACES
INVESTIGATIONS OF CURRENT AND FORMER EXECUTIVES BY THE SEC AND THE MANHATTAN
AND DALLAS US ATTORNEYS' OFFICES AS WELL AS TEXAS AND OTHER STATE
SECURITIES REGULATORS

PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA AGREED TO THE
TEXAS SETTLEMENT WITHOUT ADMITTING TO OR DENYING THE ALLEGATIONS THE
SETTLEMENT DISCUSSIONS WERE CONTENTIOUS PARTLY BECAUSE TEXAS REGULATORS
WERE DEMANDING THE TEMPORARY SUSPENSION OF BUSINESS PEOPLE FAMILIAR WITH
THE MATTER SAY THE 15 MILLION PAYMENT INCLUDES 500000 AS PART OF THE
BROADER FEDERAL AND STATE REGULATORY SETTLEMENT

WHILE THIS AGREEMENT IMPOSES SOME STRINGENT SANCTIONS FOR PAST PRACTICES
THE FIRM'S DAYTODAY BUSINESS ACTIVITIES WITH ITS MORE THAN 90000 TEXAS
ACCOUNTS WILL NOT BE AFFECTED HARDWICK SIMMONS PRUDENTIAL SECURITIES
PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MOST IMPORTANTLY THIS
AGREEMENT WITH TEXAS MEANS ALL 50 STATES ARE NOW PARTIES TO OUR GLOBAL
SETTLEMENT AND ALLOWS US TO MOVE FORWARD WITH THE BUSINESS OF THE FIRM

PRUDENTIAL ALSO SAID THAT THE DALLAS DISTRICT ATTORNEY'S OFFICE HAS SAID IT
WILL NOT PURSUE THE FIRM AS PART OF A SEPARATE INVESTIGATION INTO
PRUDENTIAL'S PARTNERSHIP PRACTICES HOWEVER THE FIRM WILL CONTINUE TO WORK
CLOSELY WITH THE DISTRICT ATTORNEY'S OFFICE CONCERNING THAT OFFICE'S
INQUIRIES INTO THE ACTIVITIES OF FORMER EMPLOYEES

UNDER THE SETTLEMENT PRUDENTIAL AGREED TO BE SUSPENDED FROM SOLICITING
OFFERING OR SELLING SECURITIES IN INTO OR FROM THE STATE OF TEXAS TO NEW
CUSTOMERS FOR A PERIOD OF FIVE CONSECUTIVE BUSINESS DAYS THE ACCORD ALSO
PREVENTS PRUDENTIAL'S NORTH DALLAS BRANCH OFFICE FROM ENGAGING IN THE SAME
ACTIVITIES FOR 20 BUSINESS DAYS PRUDENTIAL SAID THE TWO PERIODS WILL RUN
CONCURRENTLY STARTING JAN 31

IT IS EXTREMELY UNUSUAL FOR REGULATORS TO ISSUE ORDERS RESTRICTING CUSTOMER
ACTIVITY AT BROKERAGE FIRMS LAST YEAR FOUR PAINEWEBBER GROUP INC BRANCHES
WEREN'T ALLOWED TO OPEN ANY NEW BROKERAGE ACCOUNTS FOR ONE MONTH UNDER A
SETTLEMENT WITH THE SEC

IT WASN'T SURPRISING THAT TEXAS DECIDED TO PURSUE ITS OWN CASE AGAINST
PRUDENTIAL THE DALLAS BRANCH WAS AMONG THE BIGGEST SELLERS OF PARTNERSHIPS
IN THE NATION BROKERS THERE HAVE BEEN ACCUSED OF AMONG OTHER THINGS
UNAUTHORIZED TRADING UNSUITABLE TRADING AND CHURNING OR TRADING SECURITIES
TO GENERATE EXCESS COMMISSIONS

THE TEXAS SETTLEMENT IS PROBABLY JUSTIFIED BY THE FACT THAT WHAT EXISTED
THERE REPRESENTED A MICROCOSM OF THE ARRAY OF PROBLEMS FACING THE FIRM IN
OTHER PLACES THROUGHOUT THE COUNTRY SAID J BOYD PAGE AN ATTORNEY IN
ATLANTA REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL

IMPROPER ACTIVITIES AT PRUDENTIAL'S NORTH DALLAS OFFICE HAVE COST INVESTORS
MILLIONS OF DOLLARS PEOPLE FAMILIAR WITH THE CASE SAID IN THE OCTOBER
CIVIL COMPLAINT FILED BY THE SEC THE AGENCY ACCUSED PRUDENTIAL OF FAILING
TO REASONABLY SUPERVISE TWO OF THE FIRM'S TOP PRODUCERS EMPLOYED IN THE
DALLAS OFFICE

THE AGENCY'S SETTLEMENT ORDER CITED ONE BROKER IN THE DALLAS BRANCH OFFICE
 IDENTIFIED AS J FREDERIC STORASKA BY PEOPLE FAMILIAR WITH THE MATTER 
FOR OPERATING HIS OWN DEPARTMENT' WITHIN THE OFFICE WHERE HE ENGAGED IN
TRADING IN CUSTOMER ACCOUNTS WITHOUT THEIR AUTHORIZATION ENTERING LARGE
PURCHASE ORDERS FOR  LIMITED PARTNERSHIPS IN THE ACCOUNTS OF CERTAIN
CLIENTS AT THE END OF EACH MONTH MR STORASKA HAS DENIED WRONGDOING

AS PART OF THE TEXAS ACCORD PRUDENTIAL AGREED TO LAUNCH A FORMAL
EDUCATIONAL PROGRAM FOR ITS BROKERS TO PREVENT FURTHER SECURITIES
VIOLATIONS MAKE DETAILED QUARTERLY REPORTS TO THE TEXAS COMMISSIONER ON THE
PROGRAM AND COOPERATE WITH THE STATE IN ITS CONTINUING INVESTIGATION OF
BROKERS

ANY VIOLATION OF THE TEXAS ORDER OR THE BROADER FEDERAL AND STATE
SETTLEMENT WITHIN TWO YEARS WOULD CONSTITUTE GROUNDS FOR THE FILING OF
A CIVIL ADMINISTRATIVE ACTION THAT COULD CAUSE PRUDENTIAL'S BROKER LICENSE
TO BE REVOKED IN TEXAS REGULATORS SAID 9401190002 940119 BUSINESS BRIEF
 UNITED PARCEL SERVICE OF AMERICA PACKAGEDELIVERY CONCERN HANDLES
RECORD VOLUMES

UNITED PARCEL SERVICE OF AMERICA INC SAID IT SET RECORD VOLUMES IN ITS US
AIRDELIVERY BUSINESS IN DECEMBER HANDLING AN AVERAGE OF 1370000 PACKAGES
AND DOCUMENTS A DAY

THE CLOSELY HELD PACKAGEDELIVERY CONCERN ALSO SAID IT EXPECTS TO REPORT
REVENUE OF ABOUT 175 BILLION FOR 1993 COMPARED WITH 165 BILLION IN
1992 A SPOKESMAN ADDED THAT THE COMPANY EXPECTS 1993 PROFIT TO EXCEED
1992'S EARNINGS OF 765 MILLION

ATLANTABASED UPS WHICH HAS BEEN PUSHING AGGRESSIVELY INTO AIREXPRESS
INTERNATIONAL DELIVERY AND CORPORATE ACCOUNTS SAID IT SET A ONEDAY AIR
VOLUME RECORD ON DEC 21 HANDLING 2950000 PACKAGES INTERNATIONAL AIR
VOLUME SHOT UP 34 IN THE FOURTH QUARTER FROM THE YEAREARLIER PERIOD

ALTHOUGH THE COMPANY SAID PRICING WAS ONLY ONE FACTOR IN THE STRONG
PERFORMANCE ANALYSTS SAID UPS'S RECENT DISCOUNTING ON CORPORATE ACCOUNTS
PLAYED A BIG PART IN THE GROWTH 9401190001 940119 INTERNATIONAL 
ANOTHER REFORMER APPEARS SET TO LEAVE RUSSIAN GOVERNMENT  FYODOROV
SAYS HE WON'T SERVE IN NEW CABINET MARKET DRIVE MAY SLOW  BY
ADI IGNATIUS AND ELISABETH RUBINFIEN STAFF REPORTERS OF THE WALL STREET
JOURNAL

MOSCOW A SECOND KEY REFORMER IS CLOSE TO RESIGNING FROM THE RUSSIAN
GOVERNMENT RAISING SERIOUS QUESTIONS ABOUT MOSCOW'S COMMITMENT TO PURSUING
RADICAL FREEMARKET REFORMS

BORIS FYODOROV MINISTER OF FINANCE AND PERHAPS RUSSIA'S MOST EFFECTIVE
REFORM STRATEGIST SAID TUESDAY THAT HE WON'T STAY ON AS FINANCE MINISTER IN
THE NEW CABINET THAT PRIME MINISTER VIKTOR CHERNOMYRDIN NOW IS ASSEMBLING
ACCORDING TO RUSSIAN PRESS REPORTS

SINCE HIS RESIGNATION WASN'T FORMALLY SUBMITTED OR ACCEPTED THERE IS A
CHANCE FOR A LASTMINUTE REVERSAL BUT MR FYODOROV HAS SET CONDITIONS FOR
REMAINING IN THE CABINET THAT MR CHERNOMYRDIN ISN'T LIKELY TO MEET
INCLUDING THE FIRING OF RUSSIA'S CENTRAL BANK CHAIRMAN

INDEED THE FINANCE MINISTER'S RESIGNATION WAS WIDELY VIEWED AS A DONE DEAL
IN THE HALLS OF PARLIAMENT IF HE DOES BOW OUT IT WOULD BE AN EVEN MORE
DAMAGING BLOW TO RUSSIA'S REFORM DRIVE THAN VICE PREMIER YEGOR GAIDAR'S
RESIGNATION ANNOUNCED SUNDAY MR GAIDAR THE ARCHITECT OF RUSSIA'S
FREEMARKET CHANGES HAD SEEN HIS AUTHORITY ECLIPSED IN RECENT MONTHS BUT
MR FYODOROV HAD BEEN MORE ACTIVE OPENLY FIGHTING TO CUT RUSSIA'S BUDGET
DEFICIT SLASH DUBIOUS SUBSIDIES TO STATE INDUSTRIES AND CONTROL INFLATION

GAIDAR WAS MORE OF A DECORATIVE FIGURE SAID GRIGORY YAVLINSKY A
REFORMIST ECONOMIST AND PARLIAMENTARIAN WHO HAS LONG BEEN A CRITIC OF MR
GAIDAR BUT FYODOROV WAS REALLY TRYING TO BUILD A WALL AGAINST INFLATION

THIS MEANS A BIG STEP BACKWARD FOR REFORMS SAID VIKTOR DAVYDKIN A
LIBERAL MEMBER OF PARLIAMENT FROM VORONEZH

IF THE CABINET LINEUP ADDS UP TO A SETBACK FOR REFORM THE VICTOR MAY BE
PRIME MINISTER CHERNOMYRDIN A GOSLOW TECHNOCRAT WHO SUCCEEDED MR GAIDAR
AS PREMIER A YEAR AGO MR CHERNOMYRDIN APPARENTLY WITH PRESIDENT BORIS
YELTSIN'S BACKING IS SETTING A MORE GRADUAL COURSE FOR RUSSIA'S REFORMS
WHICH NEITHER MR GAIDAR NOR MR FYODOROV ARE PREPARED TO SUPPORT

SOME PEOPLE EVEN SEE THE BEGINNING OF THE CHERNOMYRDIN ERA OF RUSSIAN
POLITICS THE JOWLY FORMER HEAD OF THE STATE GAS MONOPOLY IS THOUGHT TO BE
GUNNING FOR MR YELTSIN'S JOB WHEN THE PRESIDENT'S TERM EXPIRES TWO YEARS
FROM NOW

BUT THAT RESPONSIBILITY ALSO CARRIES A RISK NO POLICY INCLUDING MR
CHERNOMYRDIN'S SLOWREFORM APPROACH IS LIKELY TO EASE RUSSIA'S ECONOMIC
SLUMP ANYTIME SOON IF RUSSIANS BECOME FURTHER DISILLUSIONED MR
CHERNOMYRDIN MIGHT HAVE TO PAY WITH HIS JOB

MR YELTSIN'S ROLE IN THE CABINET SHUFFLE IS SOMETHING OF A MYSTERY HE
ACCEPTED MR GAIDAR'S RESIGNATION WITHOUT MUCH OF A FIGHT IT ISN'T CLEAR
WHERE HE STANDS ON MR FYODOROV THE PRESIDENT MET WITH MR CHERNOMYRDIN FOR
MUCH OF YESTERDAY TO HASH OUT THE FINAL COMPOSITION OF THE NEW CABINET BUT
NO ANNOUNCEMENT WAS MADE

YELTSIN BELIEVES THAT CHERNOMYRDIN HAS A MAGIC RECIPE FOR KEEPING THINGS
STABLE SAYS MIKHAIL POLTORANIN A PARLIAMENTARY DEPUTY AND A CLOSE ALLY OF
MR YELTSIN YELTSIN IS DISTANCING HIMSELF FROM THE DEMOCRATIC MOVEMENT AND
REFORMERS

THE ANTIYELTSIN CAMP NOT SURPRISINGLY CHEERED THE DEPARTURES VLADIMIR
ZHIRINOVSKY THE ULTRANATIONALIST WHO ROSE TO PROMINENCE IN LAST MONTH'S
PARLIAMENTARY ELECTIONS CROWED TO JOURNALISTS THAT TWO OF THE FOUR
MINISTERS HE HAS PUBLICLY OPPOSED WERE GONE NOW IF WE GET RID OF CHUBAIS
AND KOZYREV WE'LL HAVE A VERY GOOD GOVERNMENT HE SAID

ANATOLY CHUBAIS IS FROWNED UPON BY THE ZHIRNOVSKY CAMP BECAUSE HE IS THE
PRIVATIZATION CHIEF RUSSIAN NATIONALISTS VIEW ANDREI KOZYREV RUSSIA'S
FOREIGN MINISTER AS TOO PROWEST

IF MR FYODOROV DOES GO MR CHUBAIS WILL BE THE ONLY PROMINENT REFORMER
LEFT IN THE RUSSIAN CABINET HE HAS DECIDED TO REMAIN IN THE GOVERNMENT TO
CONTINUE EFFORTS TO SPEED THE PRIVATIZATION OF STATE INDUSTRIES BUT IT
ISN'T CLEAR HOW EFFECTIVE HE WOULD BE WORKING IN NEAR ISOLATION

WORD OF THE RESIGNATIONS SENT SHOCK WAVES THROUGH RUSSIA'S FINANCIAL
MARKETS AFTER SEVERAL MONTHS OF RELATIVE STABILITY THE RUBLE HAS FALLEN
PRECIPITOUSLY AGAINST THE DOLLAR FOR TWO STRAIGHT DAYS IN TRADING ON THE
OFFICIAL MOSCOW INTERBANK EXCHANGE YESTERDAY THE RUBLE FELL TO 1504 TO THE
DOLLAR FROM 1402 MONDAY ON FRIDAY IT CLOSED AT 1356

ADDING TO THE FINANCIAL JITTERS ARE SIGNS THAT INFLATION IS SPINNING OUT OF
CONTROL RUSSIA BROUGHT INFLATION DOWN TO 12 A MONTH IN DECEMBER FROM 30 A
MONTH EARLIER LAST YEAR BUT WITH THE GOVERNMENT CONTINUING TO HAND OUT
CHEAP CREDITS TO ITS WEAK INDUSTRIAL AND AGRICULTURAL SECTORS FEARS OF
HYPERINFLATION HAVE RETURNED MR YAVLINSKY THE ECONOMIST ESTIMATES THAT
THE INFLATION RATE ALREADY IS BACK UP TO ABOUT 1 A DAY

MESSRS GAIDAR AND FYODOROV ARE EXPECTED TO REMAIN ACTIVE IN POLITICS
PERHAPS AS VOCAL CRITICS OF MR YELTSIN'S GOVERNMENT BOTH ARE MEMBERS OF
PARLIAMENT IN THE STATE DUMA RUSSIA'S NEW LOWER HOUSE WHEN MR GAIDAR
RESIGNED HE TOLD REPORTERS I CANNOT BE IN THE GOVERNMENT AND IN
OPPOSITION TO IT AT THE SAME TIME

MR FYODOROV FOR HIS PART DROPPED OUT OF PUBLIC VIEW YESTERDAY ON MONDAY
HE ANNOUNCED CONDITIONS FOR STAYING IN THE CABINET INCLUDING THE OUSTER OF
CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO AND A CONSERVATIVE VICE PREMIER
ALEXANDER ZAVERYUKHA THE PRIME MINISTER HAS REFUSED TO FIRE THEM ADDING TO
SPECULATION THAT MR FYODOROV WOULD RESIGN

WHILE US OFFICIALS EXPRESSED CONCERN ABOUT THE REFORMERS' THINNING RANKS
THEY WERE PERHAPS MORE SHAKEN BY REMARKS MADE BY FOREIGN MINISTER KOZYREV
SUGGESTING THAT SOME RUSSIAN TROOPS SHOULD REMAIN IN THE BALTIC REPUBLICS

PRESIDENT CLINTON HAS PRESSED MOSCOW TO GET ITS TROOPS OUT OF THE BALTICS
THIS YEAR AND US OFFICIALS BELIEVED THEY'D MADE CONSIDERABLE PROGRESS ON
THE ISSUE DURING LAST WEEK'S SUMMIT MEETING

THE COMMENTS ARE CERTAINLY AT ODDS WITH STATEMENTS SIGNED BY PRESIDENT
YELTSIN IN MOSCOW AND CERTAINLY AT ODDS WITH THINGS THAT WE'VE BEEN TOLD BY
HIGH OFFICIALS OF THE RUSSIAN GOVERNMENT IN OUR MEETINGS IN MOSCOW AND PRIOR
TO MOSCOW STATE DEPARTMENT SPOKESMAN MIKE MCCURRY SAID

ANOTHER SENIOR OFFICIAL SUGGESTED THAT MR KOZYREV A FAVORITE TARGET OF
RUSSIAN NATIONALISTS MIGHT BE PLAYING POLITICS BUT IF SO WE'RE NOT HAPPY
ABOUT IT 9401180137 940118 WHO'S NEWS COMMERCIAL INTERTECH CORP

COMMERCIAL INTERTECH CORP YOUNGSTOWN OHIO KIPTON C KUMLER 53 YEARS
OLD WAS NAMED SENIOR VICE PRESIDENT OF THE COMPANY'S FLUIDPURIFICATION
SYSTEMS GROUP HE WAS PRESIDENT AND CHIEF EXECUTIVE OF LEXINGTON CONSULTING
GROUP INC AND REMAINS A DIRECTOR OF COMMERCIAL INTERTECH WHICH ALSO MAKES
HYDRAULIC COMPONENTS AND METAL PRODUCTS HE SUCCEEDS THOMAS N BIRD 50 WHO
WAS PUT ON SPECIAL ASSIGNMENT WITH CORPORATE STAFF WORKING ON INTERNATIONAL
MARKETING 9401180136 940118 WHO'S NEWS HAYES WHEELS INTERNATIONAL INC

HAYES WHEELS INTERNATIONAL INC ROMULUS MICH WILLIAM LINSKI 47 YEARS
OLD FORMERLY VICE PRESIDENT OF OPERATIONS FOR THE FABRICATED WHEELS
BUSINESS OF THIS AUTO SUPPLIER WAS NAMED TO THE NEWLY CREATED POSITION OF
PRESIDENT OF THE SAME BUSINESS UNIT 9401180135 940118 DEER ELK ARE DYING
 TO GET IN THIS CLUB JUST TO HANG AROUND  BOONE & CROCKETT IS A
SHRINE TO BIGGAME HUNTING IN AN ANIMALRIGHTS ERA  BY BILL
RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL

MISSOULA MONT TERRY SCHOENING SQUEEZES THROUGH THE DOORWAY OF THE BOONE
& CROCKETT CLUB'S HEADQUARTERS HERE WITH AN ENORMOUS RACK OF MULEDEER
ANTLERS AND A QUESTION

MR SCHOENING A 34YEAROLD RANCHER FROM DRUMMOND MONT SAYS HE HAS SPENT
CONSIDERABLE TIME CONTEMPLATING THE ANIMAL'S HEADGEAR AND FINALLY COULDN'T
STAND IT ANY LONGER ARE THESE ANTLERS JUST BIG HE WONDERS OR ARE THEY
BRAGGING BIG

HE HAS COME TO THE RIGHT PLACE TO FIND OUT

TO MOST NONHUNTERS BOONE AND CROCKETT ARE MERELY SURNAMES FOR DANIEL AND
DAVY BUT AMONG THE NATION'S 157 MILLION HUNTERS THEY REPRESENT THE
PINNACLE OF BIGTIME BIGGAME HUNTING BLUE BLOOD THEODORE ROOSEVELT STARTED
THE CLUB IN 1887 AN AVID HUNTER WHO FILLED THE WHITE HOUSE DINING ROOM WITH
STUFFED HEADS DURING HIS PRESIDENCY HE WANTED A GROUP WITH ENOUGH FINANCIAL
AND POLITICAL CLOUT TO MAKE SURE THERE WOULD BE PLENTY OF BIG GAME LEFT TO
HUNT IN THE WEST AFTER THE DEPREDATIONS OF THE BUFFALO SLAUGHTER

BOONE & CROCKETT'S HEADQUARTERS IN AN ELEGANT OLD RAILROAD DEPOT HERE ATTEST
TO THAT AN EIGHTFOOT STUFFED ALASKAN BROWN BEAR REARS ON ITS HIND LEGS
JUST INSIDE THE DOOR STUFFED MOOSE HEADS ELK ANTLERS AND BIGHORN SHEEP ARE
PILED IN ALCOVES AND CLOSETS PART OF THE CLUB'S COLLECTION OF SOME 3000
TROPHIES

THE CLUB ITSELF REMAINS TINY AND ELITE MEMBERSHIP LIMITED TO 100 BY MR
ROOSEVELT HAS INCLUDED A SPRINKLING OF ROCKEFELLERS MELLONS AND OTHER
WEALTHY EASTERNERS BUT THE CLUB HAS BECOME WELL KNOWN AS THE LEADING
ARBITER AND SCOREKEEPER FOR NORTH AMERICAN BIGGAME RECORDS SINCE IT BEGAN
PUBLISHING ITS RECORD BOOK IN 1932

LAST YEAR HUNTERS SUBMITTED SOME 1200 KILLS EVERYTHING FROM MOOSE TO
MUSK OX SEEKING A SPOT IN BOONE & CROCKETT'S 601PAGE RECORD BOOK WE'RE
THE GOLD STANDARD AND THE AUTHORITY ON BIGGAME RECORDS BOASTS CLUB
SPOKESMAN JAMES H RED DUKE A HOUSTON TRAUMA SURGEON AND TV COMMENTATOR
ON THE OUTDOORS

MOST TROPHIES INCLUDING MR SCHOENING'S MULE DEER FALL SHORT OF THE CLUB'S
RIGID SIZE AND CONFIGURATION STANDARDS BUT THAT DOESN'T SEEM TO DETER THE
RANCHER WHO PULLS A WELLTHUMBED SNAPSHOT FROM HIS WALLET OF ANOTHER DEER
HE SHOT TWO YEARS AGO THAT NEARLY QUALIFIED I WANT TO MAKE THAT BOOK SOME
DAY HE SAYS SOLEMNLY

LOTS OF HUNTERS SHARE THAT AIM ANIMALRIGHTS CONCERNS AND POPULATION SHIFTS
HAVE FLATTENED THE GROWTH OF HUNTING IN THE US OVER THE PAST DECADE BUT
THERE ARE PLENTY OF AFFLUENT BABY BOOMERS BLASTING AWAY IN THE WOODS IN
HOPES OF BAGGING A BIGGAME RECORD FEDERAL WILDLIFE OFFICIALS ESTIMATE THAT
51 BILLION WAS SPENT ON BIGGAME HUNTING IN 1992 UP 13 FROM 10 YEARS
AGO YOU TALK ABOUT A BUNCH OF COMPULSIVE PEOPLE SAYS DR DUKE THIS IS
SERIOUS BUSINESS

SUBMISSIONS FOR ENTRY IN BOONE & CROCKETT'S RECORDS OF NORTH AMERICAN BIG
GAME HAVE CLIMBED FOURFOLD IN THE PAST 10 YEARS EVERYBODY WANTS TO BRAG
THEY GOT THE BIGGEST SAYS JERRY JOHNSTON WHO HEADS THE TEXAS TROPHY
HUNTER ASSOCIATION IN SAN ANTONIO FOR SOME OF HIS MEMBERS MR JOHNSTON
SAYS A BOONE & CROCKETT LISTING IS THE ULTIMATE GOAL IN LIFE RECORDS
ARE FALLING FAST AS THE POPULATION AND HEALTH OF SOME WILDLIFE SPECIES
IMPROVE

RANDY HORN GENERAL MANAGER OF JONAS BROTHERS INC A DENVER TAXIDERMIST
SAYS A BIGGAME TROPHY CERTIFIED BY BOONE & CROCKETT IS THE EQUIVALENT OF A
WORK OF FINE ART FOR SOME HUNTERS AND RANKED TROPHIES CAN ALSO COST AS
MUCH AS FINE ART MR HORN'S COMPANY SOLD A SET OF MULEDEER ANTLERS RANKED
NO 18 BY BOONE & CROCKETT FOR 6000 WHITETAILED DEER HAVE FETCHED TWICE
THAT AND A TOPRANKED RACK OF ELK ANTLERS COULD SNAG A SIXFIGURE PRICE
FROM TROPHY COLLECTORS HE SAYS

A HUNTER BID 303000 FOR A STATE PERMIT TO SHOOT A RARE DESERT BIGHORN
SHEEP IN ARIZONA LAST YEAR HUNTING MUSK OX IN THE HIGH ARCTIC CAN COST
30000 AND THE WHITE MOUNTAIN APACHES WHO BOAST TROPHYSIZE ELK ON THEIR
ARIZONA RESERVATION CHARGE HUNTERS 11000 FOR A SPOT ON THEIR FIVEYEAR
WAITING LIST FOR THOSE WHO CAN'T WAIT THE TRIBE HOLDS AN AUCTION FOR AN
IMMEDIATE SLOT TOP BID

RARE SPECIES STAND THE BEST CHANCE OF MAKING THE CLUB'S BOOK ONLY ABOUT 20
HUNTERS SUBMITTED MUSKOX KILLS FOR CONSIDERATION IN 1992 FOR EXAMPLE
WHILE NEARLY A QUARTER OF LAST YEAR'S ENTRIES WERE WHITETAILED DEER GEORGE
COOK A 32YEAROLD POULSBO WASH HUNTER WHOSE BOONE & CROCKETT WHITETAIL
IS RANKED 220 SHOT THE ANIMAL IN 1985 AND HAS BEEN LOOKING FOR A BIGGER ONE
EVER SINCE LAST YEAR HE SPENT MORE THAN 10000 AND 35 DAYS ON WHAT HE
CALLS HIS HOLY GRAIL QUEST

BUT MAKING BOONE & CROCKETT TWICE IS A LONG SHOT IF YOU GET A RECORD IN
BOONE & CROCKETT ONCE YOU'RE A LUCKY SOB SAYS PETER STUDWELL A RETIREE
AND HUNTER IN PORT CHESTER NY IF YOU GET IN MORE THAN ONCE YOU'RE
PROBABLY A POACHER

OVER THE YEARS BOONE & CROCKETT OFFICIALS HAVE TOSSED OUT SEVERAL DOZEN
WOULDBE RECORD HOLDERS WHOSE TROPHIES WERE FOUND TO HAVE BEEN POACHED OR
IN ONE CASE STOLEN CLUB RULES REQUIRE THAT ALL RECORDBOOK ANIMALS BE
TAKEN LEGALLY ONE MAN WOUND UP CONVICTED OF POACHING AFTER SUBMITTING A
BIGHORN SHEEP ILLEGALLY SHOT FROM A HELICOPTER IN THE 1960S

SO FIERCE IS THE COMPETITION FOR A LISTING THAT SOME HUNTERS HAVE THREATENED
TO SUE WHEN THEIR ENTRIES WERE REJECTED OTHERS HAVE TRIED SLIPPING IN FAKE
ANTLERS MADE OF PLASTIC THE CLUB'S 700 VOLUNTEER SCORERS ARE TRAINED TO
WATCH FOR COUNTERFEITS

IN THE LATE1970S CLUB OFFICIALS QUIETLY DETHRONED A PRONGHORN THAT FOR
DECADES HELD THE WORLD RECORD A TAXIDERMIST DISCOVERED DURING A ROUTINE
CLEANING THAT SOMEONE HAD ADDED TWO INCHES TO THE HORNS AND COVERED UP THE
EXTENSION WITH LAMPBLACK AND PAPIERMACHE

CLUB SCORERS ALSO BECAME SUSPICIOUS WHEN A HUNTER SUBMITTED AN UNUSUALLY
LARGE AND ODDSHAPED SKULL IN THE EARLY 1980S THAT HE SAID WAS A COUGAR HE
SHOT IN ARIZONA PHILIP WRIGHT THE CLUB'S SENIOR SCORER SENT IT TO THE
SMITHSONIAN INSTITUTION IT TURNED OUT TO BE A LEOPARD SAYS MR WRIGHT
WHO CHARITABLY ATTRIBUTES THE MIXUP TO A TAXIDERMIST'S MISTAKE

MAKING BOONE & CROCKETT'S MEMBERSHIP ROLLS IS EVEN TOUGHER THAN CRACKING ITS
RECORD BOOK MEMBERS MUST BE INVITED LOBBYING IS FROWNED ON AND THEY
MUST HAVE BAGGED AT LEAST THREE BIGGAME SPECIES CURRENT MEMBERS INCLUDE
TWO ROOSEVELTS THEODORE IV AND KERMIT AND SEN FRANK H MURKOWSKI AND
REP DON YOUNG BOTH ALASKAN REPUBLICANS THE CLUB BEGAN INVITING WOMEN IN
1992 SO FAR TWO BELONG THERE ARE QUITE A NUMBER OF PEOPLE SAYS MR
WRIGHT WHO ARE EITHER NOT SUITABLE TO US OR WE TO THEM

AMONG THE LATTER ARE ANIMALRIGHTS GROUPS WHO SNARL AT BOONE & CROCKETT'S
BOAST THAT THEIRS IS THE NATION'S OLDEST CONSERVATION GROUP BOONE &
CROCKETT IS A REAL ANTIQUE THEY'VE GOT DUST ALL OVER THEM SAYS WAYNE
PACELLE DIRECTOR OF THE FUND FOR ANIMALS WHICH HAS PICKETED THE CLUB'S
ANNUAL MEETINGS SAYS ALLEN RUTBERG A SCIENTIST AT THE HUMANE SOCIETY OF
THE US YOU KILL AN ELK AND YOU GET YOUR NAME IN THE RECORD BOOK THIS IS
NOT GOING TO SAVE THE PLANET

CLUB MEMBERS ARGUE THAT THEY HAVE SPENT MILLIONS ON BIGGAME CONSERVATION
FOR EXAMPLE BOONE & CROCKETT BOUGHT A 6000ACRE RANCH IN MONTANA FOR 2
MILLION TO STUDY WILDLIFE HABITAT AND GAVE 1 MILLION TO ENDOW A CHAIR IN
WILDLIFE STUDIES AT THE UNIVERSITY OF MONTANA

SOME PEOPLE JUST DON'T LIKE HUNTING PERIOD SAYS GEORGE BETTAS A BOONE &
CROCKETT MEMBER WHO IS ASSOCIATE DEAN OF STUDENTS AT WASHINGTON STATE
UNIVERSITY

BIGGAME HUNTING IS A TOTAL EXPERIENCE MR BETTAS SAYS IT'S PUTTING IT
ALL TOGETHER PLANNING WHERE TO GO STUDYING ANIMALS' HABITS LEARNING WHERE
THEY EAT PACKING IN AND SETTING UP CAMP THEN IF I SEE A NICE BULL ELK
I'LL TAKE IT 9401180134 940118 LETTERS TO THE EDITOR A LATKE IS STILL
A LATKE BY ANY OTHER NAME

AS A LATKE LOVER I WAS FASCINATED BY YOUR DEC 14 PAGEONE ARTICLE ABOUT
THE PERFECT POTATO PANCAKE AND WOULD LIKE TO ADD THE FOLLOWING TO THE
SUBJECT ETYMOLOGICALLY THE WORD LATKE PLURAL LATKES COMES FROM THE OLD
SLAVIC WORD OLAD'YA FROM WHICH THE CURRENT POLISH WORD OADKA WAS DERIVED
THUS THE YIDDISH TERM LATKE MOST LIKELY IS THE SYNCOPATED VERSION OF
OLATKA THE BASIC RAW MATERIAL THE PERUVIAN POTATO OCCASIONALLY CALLED
PYRKI IN EASTERN EUROPE APPEARED ON THE EUROPEAN SCENE ONLY IN THE 18TH
CENTURY VIA ENGLAND AND IRELAND THE BYELORUSSIANS ESPECIALLY AROUND MINSK
ALSO HOLD POTATO PANCAKES IN HIGH REGARD AND CALL THEM DRANKI THE SHREDDED
ONES

I FULLY AGREE THAT LATKES O'LATKES TASTE ESPECIALLY GOOD WITH COOL SOUR
CREAM AND A KOSHER DILL PICKLE

YOUR STORY ABOUT THE ANNUAL POTATOPANCAKE SUPPERS HELD AT BOISE'S
CONGREGATION AHAVATH BETH ISRAEL SENT ME TO THE KITCHEN SEVERAL DAYS
STRAIGHT PEELING GRATING FRYING AND FLIPPING AND FOR ALL MY EFFORTS I
HAVE DECIDED THAT THE ONLY WAY TO MAKE POTATO PANCAKES IS TO SIMPLY PEEL THE
POTATOES GRATE THEM CUISINARTING IS OK ADD A PINCH OF SALT AND FRY THEM
IN OIL TURNING ONCE AND NEVER PRESSING DOWN ON THEM AS THEY FRY

PREPARED THIS WAY YOU'LL NOT ONLY HAVE POTATO PANCAKES LIKE THE ONES MY
MOTHER AND OTHER HAUSFRAUS MADE IN BAVARIA BUT ALSO LIKE THE ONES GUNTER
GRASS DESCRIBES AT SOME LENGTH IN THE TIN DRUM THIN DISKS OF HEAVEN
EDGED IN CRISP GOLDEN LACE MAYBE THIS WAS THE MANNA GOD SENT TO THE
ISRAELITES LOST IN THE WILDERNESS IF SO THEY WERE LUCKY INDEED

MY GRANDMOTHER WAS NOT A HIPPIE SHE TAUGHT ME THAT MATZO MEAL IS ADDED TO
LATKE'S BECAUSE IT ABSORBS THE WATER THE POTATOES LEAVE OUT WHILE ALSO
SITTING MORE READILY THAN FLOUR AND BECAUSE ONE NEEDS SO MUCH LESS GIVING A
LIGHTER MORE POTATO FLAVORED LATKE CARROTS IN VEGETABLE PANCAKES
PERHAPS IN LATKE'S NEVER

BISQUICK IN LATKES A SACRILEGE 9401180133 940118 WHO'S NEWS 
MONTGOMERY WARD NAMES ANDREWS TO RETAIL UNIT POST  BY GREGORY A
PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO IN A MOVE TO FILL OUT ITS MANAGEMENT TEAM MONTGOMERY WARD & CO
NAMED BERNARD W ANDREWS PRESIDENT AND CHIEF OPERATING OFFICER OF ITS
FLAGSHIP RETAIL DIVISION

THE MOVE COMES JUST A MONTH AFTER THE BIG RETAILER ANNOUNCED THE RESIGNATION
OF HAROLD KAHN ITS CORPORATE PRESIDENT AND SENIOR MERCHANT MR ANDREWS
TAKES OVER MOST OF MR KAHN'S FORMER RESPONSIBILITIES THOUGH HIS TITLE IS
DIFFERENT

THE MOVE COMES JUST A MONTH AFTER THE BIG RETAILER ANNOUNCED THE RESIGNATION
OF HAROLD KAHN ITS CORPORATE PRESIDENT AND SENIOR MERCHANT THAT POSITION
REMAINS UNFILLED

MR ANDREWS 52 YEARS OLD HAS WORKED AT MONTGOMERY WARD BEFORE AND IN
FACT HAS WORKED WITH BERNARD F BRENNAN MONTGOMERY WARD'S CHAIRMAN FOR 20
YEARS FIRST AT SEARS ROEBUCK & CO AND LATER AT MONTGOMERY WARD MR
ANDREWS LEFT MONTGOMERY WARD IN 1990 TO TAKE THE POSITION OF EXECUTIVE VICE
PRESIDENT AT ELECTRONICS RETAILER CIRCUIT CITY STORES INC HIS POSITIONS AT
MONTGOMERY WARD ARE NEWLY CREATED

IN HIS NEW POSTS MR ANDREWS FACES THE TASK OF REENERGIZING THE COMPANY'S
APPAREL SALES WHICH DIDN'T MEET MR BRENNAN'S TARGETS LAST YEAR

MORE THAN A DOZEN SENIORLEVEL OFFICIALS HAVE RESIGNED FROM MONTGOMERY WARD
SINCE THE COMPANY WAS TAKEN PRIVATE IN A 38 BILLION LEVERAGED BUYOUT IN
1988 ALL THE TURNOVER HAS GIVEN MONTGOMERY WARD AN IMAGE OF INSTABILITY
YESTERDAY MR BRENNAN SAID THAT ISN'T THE CASE MOST OF THE PEOPLE ON OUR
MANAGEMENT TEAM NOW WERE ON OUR MANAGEMENT TEAM YEARS AGO HE SAID

BUT MR BRENNAN ADDED THAT HE HOPED THERE WILL BE FEWER CHANGES IN
MONTGOMERY WARD'S EXECUTIVE RANKS IN THE FUTURE DANIEL LEVY MR KAHN'S
PREDECESSOR LEFT MONTGOMERY WARD EARLIER IN 1993 AND MR KAHN HADN'T
WORKED AT MONTGOMERY WARD OR WITH MR BRENNAN BEFORE HIS 14MONTH STINT AS
THE COMPANY'S NO 2 OFFICER

FOR SOME INDUSTRY OBSERVERS THE TURMOIL IN MONTGOMERY WARD'S TOP RANKS HAS
CLOUDED THE COMPANY'S POTENTIAL FOR GOING PUBLIC MR BRENNAN SAID THAT
THOUGH A COMMON STOCK OFFERING REMAINS A VIABLE OPTION FOR THE NATION'S
SECONDLARGEST CLOSELY HELD RETAILER IT ISN'T ONE HE IS CURRENTLY
CONTEMPLATING

WITH A COMPLETE MANAGEMENT TEAM IN PLACE MR BRENNAN SAID HE SHOULD HAVE
MORE TIME TO FOCUS ON BUILDING THE COMPANY'S NONCORE BUSINESSES SUCH
VENTURES INCLUDE MONTGOMERY WARD'S CATALOG BUSINESS AND A RECENT INITIATIVE
TO BUILD SMALLER STORES IN SMALLER MARKETS

HE ALSO FORECAST THAT MONTGOMERY WARD WILL REPORT 1993 SALES OF ABOUT 6
BILLION IN 1992 THE COMPANY HAD SALES OF 58 BILLION 9401180132 940118
BUSINESS BRIEF FIRST UNION TO ACQUIRE BANCFLORIDA POSTS SHARP INCREASE
IN 4THPERIOD NET

CHARLOTTE NC FIRST UNION CORP CONTINUING TO EXPAND ITS OPERATIONS IN
FLORIDA SAID IT AGREED TO ACQUIRE BANCFLORIDA FINANCIAL CORP IN A STOCK
SWAP VALUED AT ABOUT 168 MILLION

SEPARATELY THE BANKHOLDING COMPANY REPORTED THAT FOURTHQUARTER EARNINGS
JUMPED TO 1953 MILLION OR 112 A SHARE FROM A RESTATED 174 MILLION
OR FIVE CENTS A SHARE A YEAR EARLIER FIRST UNION ORIGINALLY REPORTED 1992
FOURTHPERIOD EARNINGS OF 1348 MILLION OR 95 CENTS A SHARE THE LASTEST
PERIOD'S RESULTS REFLECTED UNUSUALLY STRONG LOAN GROWTH AND HEALTHY
SECURITIES FEES

BANCFLORIDA WITH 37 OFFICES AND ABOUT 15 BILLION IN ASSETS WILL FILL A
CRITICAL GAP FOR FIRST UNION IN THE SOUTHWEST CORNER OF FLORIDA ANALYSTS
SAID THE ONLY HAZARD FOR FIRST UNION IS BANCFLORIDA'S TROUBLED LOAN
PORTFOLIO ITS NONPERFORMING ASSETS ARE ABOUT 4 OF TOTAL ASSETS ROUGHLY
TWICE THE INDUSTRY AVERAGE

STILL FIRST UNION SAID IT IS CONFIDENT IT CAN HELP BANCFLORIDA WHICH IS
BASED IN NAPLES SHORE UP ITS BALANCE SHEET WE THINK THEY HAVE A GOOD
HANDLE ON THEIR CREDIT PROBLEMS SAID MALCOLM MURRAY FIRST UNION'S CHIEF
CREDIT OFFICER FIRST UNION ALSO EXPECTS TO BE ABLE TO SHAVE AS MUCH AS 35
FROM BANCFLORIDA'S ANNUAL NONINTEREST EXPENSES ONCE THE TWO COMPANIES
COMPLETE THEIR CONSOLIDATION

UNDER THE AGREEMENT BANCFLORIDA SHAREHOLDERS WILL RECEIVE 28 TO 30 OF
FIRST UNION COMMON STOCK FOR EACH OF THEIR SHARES BASED ON THE MARKET PRICE
OF FIRST UNION'S STOCK AFTER THE ACQUISITION IS COMPLETED FIRST UNION ALSO
WILL BUY BACK HALF OF THE ISSUED SHARES ON THE OPEN MARKET AFTER THE
TRANSACTION IS CLOSED TO MINIMIZE THE NUMBER OF NEW SHARES ON THE MARKET

IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BANCFLORIDA
SHARES CLOSED AT 26875 UP 3875 OR 17 FIRST UNION SHARES CLOSED AT
42375 UP 50 CENTS

FOR ALL OF 1993 FIRST UNION REPORTED NET INCOME OF 8175 MILLION OR 473
A SHARE COMPARED WITH A RESTATED 3851 MILLION OR 223 A SHARE THE BANK
SAID 1992 RESULTS WERE RESTATED TO ACCOUNT FOR ACQUISITIONS

FIRST UNION SAID TAXEQUIVALENT NET INTEREST INCOME ROSE 12 IN 1993 THE
BANK'S FEE INCOME FROM SECURITIES AND CAPITAL MANAGEMENT JUMPED 13
9401180131 940118 GM AGREES TO ADD LOUISIANA WORKERS IN SETTLING
STRIKE  BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL

DETROIT STRIKING WORKERS AT GENERAL MOTORS CORP'S ASSEMBLY PLANT IN
SHREVEPORT LA RATIFIED A THREEYEAR LABOR CONTRACT THAT WILL REQUIRE THE
COMPANY TO ADD 100 WORKERS AT THE PLANT WIPING OUT SOME OF ITS PRODUCTIVITY
GAINS

THE SETTLEMENT REPRESENTS A SETBACK FOR GM WHICH IS STRUGGLING TO RAISE
PRODUCTIVITY SO IT CAN COMPETE WITH LEANER COMPANIES SUCH AS FORD MOTOR CO
WITH THE ADDED WORKERS THE SHREVEPORT PLANT WILL USE 27 MORE WORKERS YET
ASSEMBLE ONLY 11 MORE VEHICLES THAN A COMPETING FORD TRUCK PLANT IN
MINNESOTA BOTH PLANTS BUILD COMPACT PICKUP TRUCKS

IN ADDITION TO ADDING BACK JOBS AT THE PLANT GM ALSO AGREED TO PROVIDE
EMPLOYMENT FOR AN UNDETERMINED NUMBER OF GM WORKERS IN A NEARBY JOHNSON
CONTROLS INC FACTORY THAT BUILDS SEATS FOR THE SHREVEPORT ASSEMBLY PLANT A
GM SPOKESWOMAN SAID

BY ADDING 100 WORKERS AT SHREVEPORT GM WILL ESSENTIALLY SLOW DOWN CERTAIN
WORK AT THE PLANT HOWEVER THE SPOKESWOMAN SAID ABOUT A THIRD OF THE NEW
WORKERS WILL BE USED TO REPLACE OTHERS WHO HAVE RETIRED OR TRANSFERRED AND
SHE SAID THESE WORKERS WOULD HAVE BEEN REPLACED ANYWAY THE NEW SHREVEPORT
WORKERS WILL COME FROM THE COMPANY'S POOL OF SURPLUS LABOR AT OTHER
FACILITIES

IN RETURN FOR THESE CONCESSIONS GM SAID IT DEFUSED A UNION ATTEMPT TO
CHANGE THE PLANT'S OPERATING AGREEMENT WHICH INCLUDES DEPLOYMENT OF WORKERS
IN TEAMS AND FLEXIBLE CLASSIFICATIONS FOR SKILLED TRADES WORKERS WE WERE
ABLE TO PRESERVE OUR BASIC WORK PHILOSOPHY WHICH WAS CHALLENGED IN THESE
NEGOTIATIONS SAID THE COMPANY SPOKESWOMAN WHO ADDED THAT THE PLANT WILL
STILL BE ABLE TO MEET ITS PRODUCTIVITY GOALS DESPITE THE ADDED WORKERS

PRODUCTION AT SHREVEPORT WHERE 4000 COMPACT PICKUP TRUCKS ARE BUILT
WEEKLY WILL RESUME TODAY ANALYSTS ESTIMATE THAT THE STRIKE WILL HURT GM'S
BOTTOM LINE BY BETWEEN 8 MILLION AND 12 MILLION

MORE IMPORTANT IS THE PRECEDENT THE SHREVEPORT PACT SETS FOR OTHER PLANTS
ALTHOUGH GM AND THE UNITED AUTO WORKERS SIGNED A NATIONAL THREEYEAR PACT IN
NOVEMBER GM STILL HAS ABOUT 50 LOCATIONS WHERE IT AND THE UNION HAVE YET TO
AGREE ON LOCAL CONTRACTS THE UAW HAS VOWED TO FIGHT ANY PRODUCTIVITY
IMPROVEMENT THAT COMES THROUGH A WORK SPEEDUP 9401180130 940118
INTERNATIONAL AN UNEVEN PROSPERITY COMES TO LATVIA  THE RICH CAN
BUY ANYTHING THE REST CAN'T BUY BREAD  BY DANA MILBANK STAFF
REPORTER OF THE WALL STREET JOURNAL

RIGA LATVIA YOU CAN BUY ALMOST ANYTHING ON THE STREETS OF RIGA THESE
DAYS CHIVAS REGAL WHISKEY MERCEDESBENZ SEDANS ELECTROLUX MICROWAVE
OVENS DOWN THE BLOCK FROM THE OLD KGB OFFICE THE PRICEY CLOTHIER HUGO BOSS
JUST OPENED SHOP

SO WHO'S BUYING IT ALL CERTAINLY NOT VOLDAMAR MIESNIEKS AN 80YEAROLD
PENSIONER WHO IS HAWKING NEWSPAPERS IN THE COLD OUTSIDE A DEPARTMENT STORE
HIS PENSION IS ABOUT 35 A MONTH NOT ENOUGH FOR BREAD AND SAUSAGE LET
ALONE LUXURY APPLIANCES THE STORES ARE FULL THE SHELVES ARE FULL THERE'S
A LOT OF STUFF TO BUY HE SAYS THERE'S NOTHING LACKING BUT THE MONEY TO
BUY IT

BUSINESS IS BOOMING IN RIGA RECLAIMING LATVIA'S CENTURIESOLD STATUS AS
GATEWAY BETWEEN RUSSIA AND EUROPE BUT THE FORMER SOVIET REPUBLIC IS HAVING
TROUBLE TRANSLATING THIS FLURRY OF TRADING ACTIVITY INTO PROSPERITY FOR ITS
PEOPLE THE RESULT IS A GILDED AGE IN LATVIA WITH A HANDFUL OF NEWLY MADE
MILLIONAIRE BANKERS TRADERS AND MOBSTERS RUNNING ABOUT WHILE THE BULK OF
LATVIANS STRUGGLE

BY MANY MEASURES LATVIA'S PROGRESS IN THE PAST 18 MONTHS IS DRAMATIC BACK
IN 1992 GROSS DOMESTIC PRODUCT DECLINED AT A RATE OF 37 AMID
HYPERINFLATION OF MORE THAN 1000 AND SHORTAGES OF FOOD AND OIL

BUT THE GOVERNMENT SAYS THE ECONOMY HAS STOPPED CONTRACTING AND NOW
FORECASTS 5 ECONOMIC GROWTH IN 1994 INFLATION HAS DROPPED TO AN ANNUAL
RATE OF 12 AND IS FORECAST TO SLOW TO 6 THIS YEAR LATVIA'S SIXMONTH OLD
CURRENCY THE LAT IS FULLY CONVERTIBLE AND HAS STRENGTHENED AGAINST MAJOR
CURRENCIES

A SURVEY OF 35 ECONOMISTS IN EUROMONEY A FINANCIAL MAGAZINE CONCLUDED THAT
LATVIA WOULD HAVE THE MOST IMPROVED ECONOMY IN EASTERN EUROPE IN 1994 SOME
80 BANKS HAVE SPRUNG UP HERE WITH DEPOSITS SOARING TO 500 MILLION FROM
100 MILLION AT THE BEGINNING OF 1993 TWO FOURSTAR HOTELS HAVE OPENED IN
RIGA AND A 380BED RADISSON IS ON THE WAY THE AIRPORT IS EXPANDING TO
ACCOMMODATE BOEING 747S

IT'S COMING ALIVE ALL OVER THE PLACE SAYS JONATHAN BEMIS COMMERCIAL
OFFICER AT THE US EMBASSY HE FIGURES THE COUNTRY'S GEOGRAPHY IT'S
LOCATED IN THE MIDDLE OF THE THREE BALTIC STATES AND HAS THE BIGGEST PORT
BETWEEN ST PETERSBURG RUSSIA AND GDANSK POLAND AND ITS RELATIVELY
STABLE AND FRIENDLY GOVERNMENT WILL MAKE LATVIA THE REGION'S HONG KONG

LATVIA IS BECOMING A FINANCIAL CENTER FOR THE BALTICS AND THE FORMER SOVIET
UNION AGREES JERRY RALOWSKI A POLE WHO COORDINATES COOPERS & LYBRAND'S
EASTERN EUROPEAN AND BALTIC OPERATIONS MANY THINGS ARE GOING IN THE RIGHT
DIRECTION

BUT NOT EVERYTHING LATVIA STILL RELIES ON THE FORMER SOVIET STATES FOR 55
OF ITS EXPORTS AND IT REMAINS CLOSELY TIED TO THE PRECARIOUS RUSSIAN
ECONOMY IT HAS NO RELIABLE LEGAL SYSTEM AND AS THE RECENT ELECTIONS IN
RUSSIA UNDERSCORE POLITICAL STABILITY ISN'T ASSURED THE RUSSIAN MAFIA HAS
A STRONG FOOTHOLD HERE

THE GOVERNMENT HAS PRIVATIZED ONLY 20 BUSINESSES OF ANY SIZE AND HAS SOME
1000 REPRESENTING NEARLY 75 OF ALL INDUSTRY TO GO

JOHN HINDE WHO OPERATES THE GLOBAL TRADE GROUP COMMODITY BROKERAGE FIRM IN
RIGA SAYS THE LATVIAN PROGRESS SO FAR IS JUST A PAINT JOB ONE PROBLEM
NEW BUSINESSES ARE STOREFRONTS RATHER THAN FACTORIES AT THE FIRST SIGN OF
TROUBLE THEY CAN BE GONE IN A FEW DAYS HE SAYS

WHAT WEALTH HAS COME TO LATVIA SO FAR HAS BEEN VERY CONCENTRATED CREATING A
CLASS DIVISION BETWEEN RICH AND POOR WITH NO MIDDLE CLASS IN SIGHT PRICES
OF EVEN ORDINARY GOODS SUCH AS BREAD AND SALAMI PUT THEM BEYOND THE REACH
OF MANY AS THE AVERAGE SALARY IS LESS THAN 100 A MONTH AND THE GOVERNMENT
ACKNOWLEDGES THAT UNEMPLOYMENT OFFICIALLY 55 COULD REALLY BE 30 OR SO

THE RESULT IS A TENSE MIXTURE BETWEEN HAVES AND HAVENOTS

THESE THINGS WORRY VALERIJS KARGINS PRESIDENT OF PAREX BANK ONE OF
LATVIA'S LARGEST WITH ASSETS OF 196 MILLION THE 32YEAROLD RUSSIAN
MOGUL A FORMER JOURNALIST HAS MADE HIMSELF MANY MILLIONS ALREADY HIS
18MONTHOLD BANK HAS A COMFORTABLE 4400 RETURN ON INVESTMENT THE BANK
WHICH CHARGES INTEREST OF 80 AND PAYS INTEREST OF 60 HAS OFFICES ALL OVER
RUSSIA AND SWISSSTYLE NUMBERED ACCOUNTS BOTH IN DOLLARS AND LATS PAREX'S
SLOGAN WE ARE NEARER THAN SWITZERLAND

BUT THE BANK BUSINESS IS BOOMING BECAUSE OF WESTERN CAPITAL MOVING INTO
RUSSIA TO PAY FOR COMMODITIES BEING SHIPPED OUT WE SEE NO INVESTMENT INTO
THE ECONOMY OF LATVIA SAYS MR KARGINS HIS BODYGUARD NEARBY IN
PRINCIPLE HE SAYS BANKING MUST POSITIVELY INFLUENCE OTHER BRANCHES OF
THE ECONOMY BUT IN PRACTICE MR KARGINS FEARS AN ECONOMIC DROPOFF OF A
CHAOTIC NATURE

STILL THERE ARE HOPEFUL SIGNS THE GOVERNMENT HAS FORMED NEW AGENCIES TO
STREAMLINE FOREIGN INVESTMENT AND PRIVATIZATION IT HAS ALREADY SPUN OFF
ALMOST ALL STATE FARMS TO 54000 FARMERS WESTERN COMPANIES ARE BIDDING SOME
1 BILLION FOR A HALF STAKE IN LATVIA'S TELEPHONE SYSTEM AND THE STATE
SHOULD BE ABLE TO SELL ITS HEALTHY SHIPPING OIL REFINERY TEXTILE AND
TIMBER BUSINESSES KELLOGG CO BUILT A 22 MILLION CEREAL PLANT TO SUPPLY
THE BALTICS AND RUSSIA BEGINNING IN JANUARY

THE INVESTMENT IS BEING MADE VERY CAUTIOUSLY SAYS SOL N BUKINGOLTS A
LATVIANAMERICAN DOING BUSINESS HERE IT WILL TAKE OFF THERE'S NO DOUBT
HIS COMPANY CHICAGOBASED INTERSOURCE INTERNATIONAL INC HAS OPENED SIX
AMERICAN FRIED CHICKEN AND LITTLE JOHNNY'S AMERICAN PIZZA RESTAURANTS SINCE
1991 THE CHAINS DON'T EXIST IN THE US AS WELL AS A PHARMACEUTICAL
BUSINESS

ON A CLEARING BESIDE A LAKE 15 MINUTES OUTSIDE OF TOWN MULTIBAU A
LATVIANOWNED CONSTRUCTION BUSINESS IS BUILDING 27 NEW HOUSES A SIGN OF
THE NEW AND YET EXTREMELY TARGETED INVESTMENT THE HOMES WITH MARBLE
WALLS WHIRLPOOLS SAUNAS ARCHED CEILINGS AND TENNIS COURTS SELL FOR
350000 TO 600000 WE CAN'T BUILD CHEAP HOUSES FOR POOR PEOPLE BECAUSE
THEY HAVE NO MONEY SAYS EDGARS VIGANTS MULTIBAU'S VICE PRESIDENT AND
OWNER OF ONE OF THE HOMES

BUT BY BUILDING FOR LATVIA'S RICH THE THREEYEAROLD COMPANY IS STARTING TO
SPREAD THE WEALTH IT NOW HAS A 12 MILLION BOOK VALUE AND EMPLOYS 600
LATVIANS IT EXPORTS LOCAL CONSTRUCTION MATERIALS TO SWEDEN GERMANY THE
NETHERLANDS AND THE UNITED KINGDOM WHEN LATVIA'S MIDDLE CLASS ARRIVES
MULTIBAU PLANS TO BUILD 80000 HOMES AFTER SOME YEARS THIS NEW LATVIAN
ECONOMY WILL GROW MR VIGANTS SAYS WE HAVE NO WAY TO GO BUT UP
9401180129 940118 POGO COMPLETES THAI WELL

HOUSTON POGO PRODUCING CO SAID IT COMPLETED A DEVELOPMENT WELL IN THE
GULF OF THAILAND

THE OIL AND GAS COMPANY WHICH OWNS A 317 WORKING INTEREST IN THE TANTAWAN
NO 3 WELL SAID THE WELL TESTED AT 407 MILLION CUBIC FEET OF NATURAL GAS
AND 8684 BARRELS OF OIL A DAY FROM FIVE INTERVALS AT DEPTHS RANGING FROM
8942 FEET TO 9683 FEET 9401180128 940118 WHO'S NEWS COGNITRONICS
CORP

COGNITRONICS CORP DANBURY CONN BRIAN J KELLEY 42 YEARS OLD WAS
NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF
VOICEPROCESSING EQUIPMENT THE FORMER EXECUTIVE VICE PRESIDENT OF
TIE/COMMUNICATIONS INC SUCCEEDS MATTHEW J FLANIGAN WHO RESIGNED MR
FLANIGAN 48 WILL REMAIN A DIRECTOR AND ADVISER THE COMPANY AND MR
FLANIGAN DECLINED TO GIVE A REASON FOR THE CHANGE 9401180127 940118
EXPRU MANAGER SAYS FIRM'S LEGAL STAFF APPROVED SALES PITCH ON
PARTNERSHIPS  BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK A FORMER PRUDENTIAL SECURITIES INC MANAGER IMPLICATED THE
FIRM'S LEGAL DEPARTMENT IN POTENTIAL PARTNERSHIP WRONGDOING AS PART OF A
CRIMINAL INVESTIGATION PEOPLE FAMILIAR WITH THE CASE SAID

THE FORMER EXECUTIVE A PARTNERSHIP PRODUCT MANAGER TOLD FEDERAL
PROSECUTORS THAT THE FIRM'S LEGAL DEPARTMENT APPROVED INTERNAL SALES
DOCUMENTS AND OTHER MARKETING MATERIALS PRUDENTIAL BROKERS USED IN SELLING
PARTNERSHIPS THE PEOPLE SAID

THE INFORMATION PROVIDED BY THE PRODUCT MANAGER IS THE FIRST THAT TIES
PRUDENTIAL'S LEGAL DEPARTMENT DIRECTLY TO THE PARTNERSHIP SCANDAL AT THE
FIRM AS REPORTED PROSECUTORS ARE EXAMINING WHAT ROLE THE 87MEMBER LEGAL
DEPARTMENT HAD IN EVALUATING AND SANCTIONING PROSPECTUSES SALES DOCUMENTS
AND OTHER MARKETING MATERIALS INVOLVED IN PEDDLING ABOUT 8 BILLION OF
PARTNERSHIPS IN THE 1980S PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE
FIRM IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA

THE SALES DOCUMENTS HELPED BROKERS SELL THE PARTNERSHIPS MOST OF WHICH HAVE
SOURED MANY OF THE DOCUMENTS URGED BROKERS TO EMPHASIZE HIGH RETURNS AND
LOW RISK TO INVESTORS WHO ACTUALLY WERE SEEKING SAFETY

THE FORMER PRODUCT MANAGER HAS TOLD PROSECUTORS THAT ROBERT BRUNTON A
PRUDENTIAL LAWYER ON STAFF AT THE FIRM REVIEWED AND APPROVED SOME OF THE
SALES MATERIALS THE PEOPLE SAID MR BRUNTON ALSO WAS THE LIAISON BETWEEN
THE LAW DEPARTMENT AND PARTNERSHIP GROUP THESE PEOPLE SAID MR BRUNTON
REPORTED TO LOREN SCHECHTER PRUDENTIAL'S GENERAL COUNSEL WHO WAS RELIEVED
OF HIS LEGAL DUTIES LAST MONTH AMID THE UNFOLDING CRIMINAL INVESTIGATION

MR BRUNTON NOW A REGIONAL PRUDENTIAL COUNSEL REFERRED QUESTIONS TO A
PRUDENTIAL SPOKESMAN WHO DECLINED TO COMMENT KENNETH VIANALE AN ASSISTANT
US ATTORNEY DECLINED TO COMMENT

PRODUCT MANAGERS WERE KEY CONTACTS FOR PRUDENTIAL BROKERS AND OTHERS IN
SELLING THE PARTNERSHIPS THEY WERE THE EXECUTIVES WHO GAVE BROKERS BRANCH
MANAGERS AND REGIONAL DIRECTORS CURRENT MARKETING MATERIALS AND UPDATES ON
THE PARTNERSHIPS

SALES MATERIALS THAT WENT TO INVESTORS PARTICULARLY PROSPECTUSES TYPICALLY
WERE REVIEWED BY OUTSIDE COUNSEL THE PEOPLE SAID SOME INTERNAL SALES
MATERIALS PARTICULARLY NATIONAL SALES SCRIPTS WERE APPROVED BY
PRUDENTIAL'S INTERNAL LAW DEPARTMENT

FEDERAL AND STATE REGULATORS IN OCTOBER ACCUSED PRUDENTIAL IN A CIVIL CASE
OF MISSTATING THE RISKS AND RETURNS OF THE PARTNERSHIPS UNDER A SETTLEMENT
WITH REGULATORS PRUDENTIAL HAS SET UP A 330 MILLION REPARATIONS FUND FOR
INVESTORS AT THE HEART OF MANY IMPROPER SALES WERE INTERNAL DOCUMENTS THAT
URGED BROKERS TO AGGRESSIVELY PUSH RISKY PARTNERSHIPS ON INVESTORS WITH
CERTIFICATES OF DEPOSIT THAT WERE APPROACHING MATURITY AND OTHERS WHO WERE
SEEKING SAFE INVESTMENTS

THE SECURITIES AND EXCHANGE COMMISSION IN A CONTINUING INVESTIGATION OF THE
MATTER IS CONSIDERING FILING CIVIL ADMINISTRATIVE PROCEEDINGS AGAINST AS
MANY AS 15 CURRENT AND FORMER PRUDENTIAL EMPLOYEES SEPARATELY THE US
ATTORNEY'S OFFICE IN MANHATTAN HAS LAUNCHED A BROAD CRIMINAL INVESTIGATION
INTO THE FIRM'S PARTNERSHIP PRACTICES AS REPORTED SEVERAL CURRENT AND
FORMER PRUDENTIAL EMPLOYEES WILL BEGIN RECEIVING SUBPOENAS DURING THE NEXT
FEW DAYS IN THE CRIMINAL CASE

PRUDENTIAL EXECUTIVES FOR THEIR PART BELIEVE THAT THE FIRM ULTIMATELY WILL
BE EXONERATED IN THE CRIMINAL INVESTIGATION

THE US ATTORNEY'S INVESTIGATION RELATES TO EVENTS THAT HAPPENED MANY
YEARS AGO AND THAT HAVE BEEN THE SUBJECT OF NOT ONLY EXTENSIVE LITIGATION
BUT ALSO FORM THE BASIS OF OUR SETTLEMENT WITH THE SEC AND STATES A SENIOR
PRUDENTIAL EXECUTIVE SAID

WE HAVE BEEN FULLY COOPERATING WITH THE INVESTIGATION AND WE'RE CONFIDENT
THAT WHEN IT IS COMPLETED THE US ATTORNEY WILL CONCLUDE THAT NO FURTHER
ACTION CONCERNING THE FIRM IS WARRANTED HE ADDED 9401180126 940118
AMERICAN HEALTH PROPERTIES INC

DENVER AMERICAN HEALTH PROPERTIES INC SAID IT AGREED TO FUND 30 MILLION
OF AN 86 MILLION FIRST MORTGAGE LOAN ON A HOSPITAL AND MEDICAL OFFICE
BUILDING IN AUSTIN TEXAS

THE REALESTATE INVESTMENT TRUST SAID IT ALREADY HAS FUNDED ABOUT 7 MILLION
OF ITS COMMITMENT AND WILL PAY THE BALANCE OVER THE REST OF THE CONSTRUCTION
PERIOD COMPLETION OF THE 670000SQUAREFOOT FACILITY IS EXPECTED IN JUNE
1995

THE LOAN WAS ORIGINATED BY NATIONAL HEALTH INVESTORS INC OF MURFREESBORO
TENN 9401180123 940105 ATTORNEY GENERAL OF SOCIAL WORK  BY ALICIA
MUNDY

AT A TIME WHEN AMERICA IS FOCUSED ON CRIME AND IS READY FOR A SERIOUS LOOK
AT FIRM BUT PRUDENT PUNISHMENT THE US ATTORNEY GENERAL HAS BECOME
DISCONNECTED FROM HER OWN TROOPS THE 4000SOME ASSISTANT US ATTORNEYS
WHO PROSECUTE FEDERAL CRIMES ON BEHALF OF THE JUSTICE DEPARTMENT JANET RENO
MAY HAVE DEFINITE PLANS TO ALTER THE DEPARTMENT'S APPROACH TO CRIME BUT SHE
APPEARS TO BE LIVING IN AN IVORY TOWER

IN A RECENT EFFORT TO COMPREHEND THIS DIVISION I INTERVIEWED SOME 60
ASSISTANT US ATTORNEYS THEIR OVERWHELMING CONCERN WAS THAT MS RENO
DOESN'T UNDERSTAND THE DAILY DIFFICULTIES FACING FEDERAL PROSECUTORS SUMMED
UP ONE VETERAN DRUG PROSECUTOR AM I NOW EMPLOYED BY THE JUSTICE DEPARTMENT
OR THE DEPARTMENT OF SOCIAL WORK

FOR MS RENO THOSE ARE FIGHTING WORDS SOON AFTER A PRICKLY RECENT
INTERVIEW WITH ME DURING WHICH SHE BRISTLED OVER SUGGESTIONS THAT MANY OF
HER CAREER PROSECUTORS WERE ALIENATED AND DISENCHANTED SHE ADDRESSED A
CONFERENCE OF 500 FEDERAL DRUG PROSECUTORS IN NEW ORLEANS A REPORTER TOLD
ME SHE BEGAN HER ADDRESS THAT ONE OF MY PROSECUTORS THINKS I AM MORE
INTERESTED IN BEING A SOCIAL WORKER THAN ATTORNEY GENERAL SHE WENT ON TO
TALK ABOUT THE SOCALLED ROOT CAUSES OF CRIME SHE ENDED BY ASKING FOR
QUESTIONS BUT THEN SIDESTEPPED THE MOST IMPORTANT ONE THROWN AT HER BY A
VETERAN DRUG PROSECUTOR JAY APPERSON FROM VIRGINIA'S EASTERN DISTRICT 
ON HER APPARENT DETERMINATION TO END MANDATORY MINIMUM SENTENCING

WHEN MS RENO SPEAKS PUBLICLY SHE MAKES A POINT OF ADDRESSING THE NAACP
THE AMERICAN CIVIL LIBERTIES UNION AND LOCAL BAR ASSOCIATIONS THE NATIONAL
ASSOCIATION OF CRIMINAL DEFENSE LAWYERS CAN GET ACCESS TO HER OR HER
ASSOCIATES ON SHORT NOTICE BUT SHE GIVES SHORT SHRIFT TO HER OWN CAREER
PROSECUTORS WHO SPEAKS FOR US ONE LOS ANGELES VETERAN ASKED

THIS QUESTION HAS BECOME ESPECIALLY ACUTE LATELY SINCE MS RENO HAS CALLED
FOR A RADICAL REVIEW OF FEDERAL CRIME FIGHTING TACTICS THE REVIEW IS NOW
BEING CONDUCTED BY VARIOUS ADVISORY GROUPS WITHIN THE JUSTICE DEPARTMENT
LED BY MS RENO'S DEPUTIES THE CHANGES THAT MAY EMERGE ARE PROFOUNDLY
TROUBLING TO FIELD PROSECUTORS WHO FEAR THAT THEIR POWERS WILL BE ERODED

MS RENO'S UNDERLYING PHILOSOPHY APPEARS TO BE THAT CRIME SHOULD BE TREATED
AS A HEALTH AND SOCIAL ISSUE AMONG THE POLICIES BEING STUDIED ARE
CUTTING BACK ON MANDATORY MINIMUM SENTENCES IN DRUGRELATED CASES RETURNING
TO THE PLEA BARGAINING PROHIBITED BY THE 1989 THORNBURGH MEMO AND GIVING
JUDGES AND DEFENSE ATTORNEYS MORE INPUT IN SENTENCE REDUCTIONS DROPPING THE
AUTOMATIC CHARGES FOR USING A GUN IN A FEDERAL CRIME REVISING THE RULES ON
DIRECT CONTACT BETWEEN PROSECUTORS AND POTENTIAL WITNESSES IN
INVESTIGATIONS PUBLICIZING INTERNAL INVESTIGATIONS OF PROSECUTORS AND
EMPHASIZING REHABILITATION AND DRUG TREATMENT INSTEAD OF PUNISHMENT

MOST OF THESE PROPOSED CHANGES READ LIKE A WISH LIST FROM THE DEFENSE BAR
VETERAN PROSECUTORS HAVE GOOD REASON TO BE WORRIED

TAKE MANDATORY MINIMUMS EVERY DRUG PROSECUTOR I INTERVIEWED PRAISED THEIR
UTILITY FORMER DRUG ENFORCEMENT AGENCY DIRECTOR AND FEDERAL PROSECUTOR
ROBERT BONNER SAYS MANDATORY MINIMUMS HAVE BEEN THE STRONGEST TOOL IN
GETTING LOW AND MIDLEVEL DEALERS TO COOPERATE WITH THE GOVERNMENT EARLY
ENOUGH IN THE CASE TO HELP THE GOVERNMENT AND YET MS RENO TOLD ME IN OUR
INTERVIEW MANDATORY MINIMUMS SHOULDN'T BE USED AS LEVERAGE

WHAT ARE THEY IF NOT LEVERAGE A NARCOTICS SECTION CHIEF IN WASHINGTON
ASKED ME WHEN I REPEATED MS RENO'S STATEMENT LISTEN WHEN A GUY KNOWS
HE'S GOING TO GET ONLY TWO TO THREE YEARS FOR DISTRIBUTION HE CAN HANDLE
IT HE KNOWS HE'LL GET PAID FOR HIS SILENCE AND COME OUT OF PRISON RICHER
THAN THE PROSECUTOR WHO PUT HIM AWAY BUT HE ADDS WHEN A GUY IS FACING
MANDATORY 10 TO 15 YEARS  HE GIVES UP THE NAMES OF HIS BOSSES

AS TO PLEA BARGAINING YEAH I'D LIKE MORE DISCRETION IN SOME CASES SAYS
A VETERAN IN VIRGINIA BUT THOSE CASES ARE FEW AND FAR BETWEEN HE ADDS
SHE RENO WORRIES ABOUT THE SYSTEM CHEWING UP SOCALLED FIRSTTIME
OFFENDERS REMEMBER BY THE TIME HE WAS TRIED PABLO ESCOBAR WAS A
FIRSTTIME OFFENDER

THEN THERE'S THE RECENT MOVE TO IGNORE THE AUTOMATIC ADDITIONAL FIVE YEARS
FOR USE OF A GUN IN A FEDERAL CRIME SEVERAL PROSECUTORS SAY THEY'VE BEEN
ENCOURAGED BY THE NEW ADMINISTRATION TO IGNORE THE FIREARMS CHARGE FORMER
ATTORNEY GENERAL WILLIAM BARR SAYS WE INSISTED ON THROWING THE BOOK AT
CAREER VIOLENT OFFENDERS AND NOW THAT POLICY IS BEING UNDERMINED MS
RENO'S OFFICE ADMITS THAT ONE OF HER ADVISORY GROUPS IS STUDYING THE
APPLICATION OF THE GUN CHARGE AS PART OF THE SITUATION WITH MANDATORY
MINIMUMS HEY SAYS MR BARR DON'T WHINE ABOUT NEW GUN CONTROL LAWS IF
YOU WON'T ENFORCE THE ONES ALREADY ON THE BOOKS

ANOTHER PROBLEM FOR PROSECUTORS IS MS RENO'S PROPOSAL TO MERGE THE
INSPECTOR GENERAL'S OFFICE WHICH REPORTS TO CONGRESS AND THE OFFICE OF
PROFESSIONAL RESPONSIBILITY WHICH CONDUCTS INTERNAL INVESTIGATIONS OF
PROSECUTORS THIS WILL POLITICIZE THE INTERNAL AFFAIRS UNIT SAYS FORMER
US ATTORNEY HENRY HUDSON OF VIRGINIA WHAT IS MORE HER PROPOSAL TO OPEN
UP OPR COMPLAINTS DURING HIGHPROFILE CASES IS AN INVITATION TO DEFENSE
LAWYERS FOR TARGET PRACTICE ON PROSECUTORS ONE PROSECUTOR WHO WAS
EXONERATED BY OPR LAST YEAR REMARKED IF THEY'D PUBLICLY OPENED THE
INVESTIGATION OF ME WHILE I WAS STILL PROSECUTING THE LARGER CASE I'D HAVE
BEEN HUNG OUT TO DRY

ALSO DISTURBING ARE THE CHANGES BEING STUDIED REGARDING WHETHER A PROSECUTOR
OR HIS AGENT CAN CONTACT THE TARGET OF A CRIMINAL INVESTIGATION SUCH
CONTACTS HELP THE FEDS PURSUE COMPLEX CORPORATE OR ORGANIZED CRIME CASES BY
ALLOWING THEM TO INDUCE MEMBERS OF A CRIMINAL CONSPIRACY TO ASSIST THE
GOVERNMENT SOME STATE BAR ASSOCIATIONS SAY DIRECT CONTACT BETWEEN FEDS
INCLUDING UNDERCOVER AGENTS AND POTENTIAL WITNESSES AND TARGETS WHO ARE
REPRESENTED BY COUNSEL IS AN ETHICAL VIOLATION

ALTHOUGH MS RENO REITERATED THE RIGHT OF FEDS TO CONTACT POTENTIAL
WITNESSES IN JULY DEPUTY ATTORNEY GENERAL PHILIP HEYMANN AND AN ADVISORY
GROUP OF US ATTORNEYS ARE REVIEWING THE GUIDELINES SOURCES INSIDE JUSTICE
COMPLAIN THAT MR HEYMANN'S INITIAL DRAFT SUGGESTED CHANGES THAT WERE
DEFENSE BAR FANTASIES AND WOULD HAVE MADE IT IMPOSSIBLE FOR US TO CONDUCT
UNDERCOVER INVESTIGATIONS OR TALK TO WITNESSES WHO VOLUNTEERED TO HELP MS
RENO SAYS SHE'S BEEN GIVEN ONE REPORT ON THE SUBJECT BUT WON'T DISCUSS
WHERE SHE'S GOING WITH IT

WHAT'S HAPPENING HERE ONE POSSIBLE REASON FOR THE DISCONNECT BETWEEN MS
RENO AND HER TROOPS MAY BE THE LACK OF FEDERAL PROSECUTORIAL EXPERIENCE IN
THE TOP TRIUMVIRATE OF THE JUSTICE DEPARTMENT MS RENO WAS A LOCAL
PROSECUTOR AND THEN AN ELECTED POLITICIAN ASSISTANT ATTORNEY GENERAL
WEBSTER HUBBELL'S PRIVATE FIRM EXPERIENCE DOESN'T LEND ITSELF TO SYMPATHY
WITH FRONTLINE PROSECUTORS AND MR HEYMANN THOUGH ONCE AN OFFICIAL OF THE
CRIMINAL DIVISION HAS HAD LITTLE EXPERIENCE AS A FEDERAL PROSECUTOR AND
HAS SPENT THE LAST DECADE AS AN ACADEMIC

ANOTHER REASON MIGHT BE THE CONFUSION AS TO MS RENO'S CONSTITUENCY HER
POWER BASE IS THE WHITE HOUSE AND ITS SURROGATES MR HUBBELL AND MR
HEYMANN SHE'S BEEN PLAYING TO AN ELITE AUDIENCE BILL AND HILLARY CLINTON
AND ASSORTED CLIENTELE FROM CIVILRIGHTS ORGANIZATIONS THE AMERICAN BAR
ASSOCIATION AND GROUPS LIKE THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA WHO
GAVE HUGE SUMS TO THE CLINTON CAMPAIGN WHEN MS RENO CAME ON BOARD HER
CAREER LAWYERS HOPED THAT THEY'D GOTTEN A PROSECUTOR'S PROSECUTOR BUT NOW
THEY THINK SHE'S TOO SOFT ON CRIME

IT'S ALL VERY TOUCHYFEELY SAYS A PROSECUTOR FROM SAN ANTONIO AFTER HER
CONGRESSIONAL TESTIMONY ON TV VIOLENCE ONE OF HER OWN SPOKEMEN MOANED
NEXT SHE'LL BE TESTIFYING ABOUT SCHOOL LUNCHES

INDEED IN A RECENT LETTER SHE SENT TO PROSECUTORS WITH THEIR PAY SLIPS SHE
OUTLINED A KIND OF ZEN MANAGEMENT STYLE ENCOURAGING THE IMPORTANCE OF
FAMILY TOGETHERNESS AND CITING THE NATIONAL PERFORMANCE REVIEW'S EMPHASIS ON
TOPDOWN SUPPORT FOR BOTTOMUP DECISIONMAKING

BUT A WASHINGTONAREA PROSECUTOR SAYS WE'RE NOT IN SOCIAL SERVICES WE'RE
HERE TO FIGHT CRIME PERHAPS HE ADDS MS RENO SHOULD TAKE ANOTHER JOB 
AT HEALTH AND HUMAN SERVICES OR JANET RENO SURGEON GENERAL

THE ATTORNEY GENERAL SEEMED AFFRONTED THAT HER PROSECUTORS ARE QUESTIONING
HER POLICIES TELL THESE PROSECUTORS TO STICK WITH THEIR JOB WHICH IS
PROSECUTING AND LET ME LOOK AT THE LARGER ISSUES SHE TOLD ME EVEN AT
THIS MOMENT THOUGH SHE MOVES QUICKLY TO HER FAVORITE SOCIAL POLICY THEMES
I HAVE TO DEAL WITH MANY AREAS  SUCH AS JUVENILE DELINQUENCY
PREVENTION

THE TROOPS IN THE TRENCHES SHE INDICATES SHOULD JUST KEEP SHOOTING SHE'LL
TELL THEM WHICH DIRECTION TO POINT AND HOW MUCH FIREPOWER THEY SHOULD USE 
AFTER HER STUDY GROUPS MEET

MS MUNDY WRITES FOR THE WASHINGTONIAN MAGAZINE SEE RELATED LETTER
LETTERS TO THE EDITOR RENO RIGHT TO FOCUS ON THE BIG PICTURE WSJ JAN
18 1994 9401050074 YY94 MM01 9401180122 940118 TECHNOLOGY & MEDICINE 
PHARMACEUTICAL FIRMS' PROFIT RISES EXPECTED TO BE SLIM  ANALYSTS
FORECAST 3 TO 6 GROWTH AS AGGRESSIVE PRICING' ENGINE SPUTTERS  
BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK UNDER PRESSURE TO DISCOUNT PRESCRIPTION DRUG PRICES THE
PHARMACEUTICAL INDUSTRY IS EXPECTED TO POST THE SLIMMEST QUARTERLY PROFIT
GAIN IN MORE THAN A DECADE

SECURITIES ANALYSTS PREDICTED FOURTHQUARTER EARNINGS WILL RISE ON AVERAGE
3 TO 6 COMPARED WITH 15 TO 20 INCREASES GENERATED BY MAJOR DRUG MAKERS
FROM THE MID1980S THROUGH 1992 THE SLOWING IN PROFIT GROWTH IS HAVING
WIDESPREAD EFFECTS COMPANIES ARE RESTRUCTURING REDUCING WORK FORCES AND
FORMING COSTSAVING ALLIANCES THE MOST IMPORTANT REASON DRUG MAKERS HAVE
LOST THE ABILITY TO BOOST PRICES AT WILL IN THE US AND ABROAD

ANALYSTS ANTICIPATE PFIZER INC AND SCHERINGPLOUGH CORP WILL STILL REPORT
EARNINGS RISES OF ABOUT 18 AND 15 RESPECTIVELY MOSTLY BECAUSE BOTH
COMPANIES SELL INNOVATIVE PRODUCTS FOR WHICH THEY CAN DEMAND PREMIUM PRICES

BUT FOR SUCH DRUG MAKERS AS MERCK & CO ELI LILLY & CO WARNERLAMBERT
CO AND BRISTOLMYERS SQUIBB CO THE TORPID PERFORMANCE REFLECTS THE
CHANGES TAKING PLACE IN HEALTH CARE AS COSTSAVING PROGRAMS AT GOVERNMENT
AND PRIVATE HEALTH INSURANCE PLANS SPREAD AND TAKE HOLD

THE LATEST US LABOR DEPARTMENT DATA SHOW THAT PRESCRIPTION DRUG PRICES
ROSE AN AVERAGE 31 IN 1993 COMPARED WITH 8 TO 12 A YEAR IN THE PREVIOUS
DECADE THE INDUSTRY'S ENGINE OF GROWTH IN THE 1980S AGGRESSIVE PRICING
OF ALL PHARMACEUTICALS HAS BEEN EFFECTIVELY ELIMINATED SAID JOSEPH
RICCARDO AN ANALYST WITH BEAR STEARNS & CO

MR RICCARDO SAID HALF OF THE INDUSTRY'S PROFITMARGIN EXPANSION FROM 1980
TO 1993 CAME FROM RAISING PRICES OF EXISTING PRODUCTS ANALYSTS AGREE THAT
THE PRICING MOTOR WILL REMAIN STALLED FOR SEVERAL YEARS MEANING THAT ANNUAL
AVERAGE PROFIT GROWTH WILL BE A MORE MODEST 5 TO 10 THROUGH 1996

ANY COMPANY COUNTING ON PRICE INCREASES SIMPLY IS NOT GOING TO HAVE
SIGNIFICANT REVENUE GROWTH THESE DAYS SAID ROBERT INGRAM PRESIDENT AND
CHIEF OPERATING OFFICER OF GLAXO HOLDING PLC'S US OPERATION

DRUG BUYING SPECIALISTS AT MAJOR MANAGED HEALTH INSURANCE PLANS SAID THAT
EVEN WITHOUT PRESSURE FROM WASHINGTON THEY HAVE BEGUN TO DEMAND PRICE
DISCOUNTS FOR CERTAIN BIGSELLING MEDICINES THESE PLANS WHICH MANAGE
PHARMACEUTICAL BENEFITS FOR MILLIONS OF US EMPLOYEES ARE ENCOURAGING
DOCTORS TO PRESCRIBE THE LEAST COSTLY MEDICINES BY CHOOSING INEXPENSIVE
GENERIC VERSIONS OF BRAND NAME DRUGS OR BRAND NAME DRUGS BOUGHT AT BARGAIN
PRICES

THE WHOLE ARENA OF MANAGEDCARE MEDICINE HAS VERY QUICKLY CHANGED THE
DYNAMICS OF MARKETING PHARMACEUTICALS SAID CAROLINE DORSA A TOP MERCK
MARKETING EXECUTIVE SHE SAID MANAGED CARE PLANS USING THE BARGAINING
POWER OF LARGE EMPLOYEE POOLS ACCOUNTED FOR HALF OF MERCK'S SALES IN 1993
UP FROM 20 SEVERAL YEARS AGO MS DORSA SAID MANAGED CARE WILL CLIMB TO 75
OF MERCK'S SALES BY 1999

THE US'S BIGGEST PHARMACYBENEFITS COMPANY MCKESSON CORP'S PCS PLAN
MANAGES DRUG COVERAGE FOR 40 MILLION PEOPLE AND EXPECTS THAT TO GROW TO 50
MILLION THIS YEAR PCS EXECUTIVES SAID THAT IN THE 1993 FIRST HALF PRICES
IT PAID FOR MEDICINES WERE FLAT COMPARED WITH A YEAR AGO THAT FOLLOWS PRICE
RISES OF 25 IN 1992 43 IN 1991 AND 65 IN 1990

PRICE COMPETITION IS ESPECIALLY STIFF WHERE NUMEROUS CHOICES OF MEDICINES
EXIST SUCH AS FOR TREATING HIGH BLOOD PRESSURE OR ULCERS A PHARMACEUTICAL
BUYER AT ONE LARGE HMO SAID THE PERTABLET PRICE IT PAID FOR MERCK'S
HYPERTENSION DRUG LISINOPRIL FELL ALMOST 6 IN 1993 TO 52 CENTS FROM ITS
PRICE IN 1991 THE DRUG'S PRICE SURGED 25 IN 1991 MERCK DECLINED TO
COMMENT

TO BE SURE CRITICS OF DRUG COMPANY PRICING NOTE THAT THE WHOLESALE LIST
PRICES MANY SMALL OR INDEPENDENT PHARMACIES PAY FOR MEDICINES STILL ARE
RISING FAST PRICES ARE CLIMBING SMARTLY FOR MEDICINES BOUGHT BY THE ELDERLY
WHO MUST PAY FOR DRUGS THEMSELVES MEDICARE DOESN'T NOW COVER OUTPATIENT
DRUG COSTS BUT THE CLINTON HEALTH PLAN PROPOSES TO EXTEND DRUG COVERAGE FOR
MEDICARE RECIPIENTS IN EXCHANGE FOR A 15 REBATE FROM DRUG MAKERS

A REPORT FROM THE SENATE'S SPECIAL COMMITTEE ON AGING WHOSE CHAIRMAN DAVID
PRYOR D ARK HAS LONG ATTACKED DRUG PRICES SHOWS LIST PRICES IN 1993
TYPICALLY ROSE ABOUT 5 TO 8 WE AGREE THAT FOR SOME PEOPLE THE
MARKETPLACE IS WORKING SEN PRYOR SAID BUT FOR THE MANY OUTSIDE THE
MARKETPLACE POLITICAL PRESSURE MAY BE REQUIRED TO KEEP PRICES DOWN

INDEED SOME LARGE PHARMACEUTICAL BUYING PLANS SAID THAT WHILE THE SPECIFIC
PRICES THEY PAY FOR MEDICINES ARE RISING SLOWLY TOTAL COSTS PER PERSON
COVERED IN THE PLAN WERE STILL GROWING WELL ABOVE INFLATION AS A RESULT OF
RISING DRUG USE ESPECIALLY FOR NEW MEDICINES THAT ARE RELEASED WITH HIGHER
PRICE TAGS THAN THE OLDER DRUGS THEY REPLACE GROUP HEALTH COOPERATIVE OF
PUGET SOUND SAID ITS PER ENROLLEE COSTS ROSE ABOUT 7 LAST YEAR ALTHOUGH
THAT IS DOWN FROM 132 IN 1992 AND 182 IN 1991

AS A RESULT THOSE DRUG MAKERS WITH A STEADY FLOW OF MEDICINES THAT PROVIDE
A SIGNIFICANT BENEFIT OVER OTHER DRUGS DID WELL IN THE PAST QUARTER
ANALYSTS SAID PFIZER EARNINGS SHOULD RISE TO ABOUT 98 CENTS A SHARE FROM 84
CENTS A SHARE A YEAR AGO BASED ON SALES OF FIVE DRUGS WITH LITTLE
COMPETITION SCHERINGPLOUGH'S PROFIT SHOULD JUMP TO 97 CENTS A SHARE FROM
84 CENTS BECAUSE OF ITS PREMIUMPRICED MEDICINES ANALYSTS SAID BOTH
COMPANIES WOULDN'T COMMENT

MEANWHILE MERCK'S PROFIT IS EXPECTED TO RISE 10 TO 59 CENTS A SHARE WHILE
BRISTOLMYERS' PROFIT FROM CONTINUING OPERATIONS IS EXPECTED TO GROW 11 TO
112 A SHARE BUT ANALYSTS PREDICTED THAT EARNINGS WILL RISE ONLY 6 AT
AMERICAN HOME PRODUCTS CORP TO 123 A SHARE AND THAT EARNINGS AT ELI LILLY
WOULD BE FLAT OR SLIGHTLY LOWER THAN THE YEAREARLIER PERIOD AT 95 CENTS TO
106 A SHARE THOSE COMPANIES ALSO WOULDN'T COMMENT

ANALYSTS SAID UPJOHN CO AND MARION MERRELL DOW INC WHOSE BIGSELLING
DRUGS NOW HAVE SIGNIFICANT GENERIC DRUG COMPETITION WILL POST EARNINGS
DECLINES UPJOHN'S PROFIT MAY DROP 10 TO AS LOW AS 76 CENTS A SHARE SOME
ANALYSTS SAID WHILE MARION'S PROFIT COULD FALL 20 TO ABOUT 42 CENTS A
SHARE THE COMPANIES SAID THEY WOULDN'T COMMENT

FINALLY ANALYSTS SAID WARNERLAMBERT'S EARNINGS FROM CONTINUING OPERATIONS
MAY DECLINE ABOUT 14 TO 88 CENTS A SHARE AS A RESULT OF PRICING
COMPETITION AND A LOSS OF SALES FOR CERTAIN PRODUCTS BECAUSE OF REGULATORY
PROBLEMS AT A PLANT IN PUERTO RICO A SPOKESMAN SAID IT DIDN'T DISAGREE WITH
ANALYST PROJECTIONS

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 9401180121 940118 WHO'S NEWS SHIFT AT
ALEXANDER & ALEXANDER LEADS TO NEW CHAIRMAN  BY GREG STEINMETZ 
STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE CHAIRMAN OF ALEXANDER & ALEXANDER SERVICES INC RESIGNED
INCREASING THE LIKELIHOOD OF MAJOR CHANGES FOR THE STRUGGLING INSURANCE
BROKER

TH IRVIN 60 YEARS OLD WILL BE SUCCEEDED BY BOARD MEMBER ROBERT BONI 65
FORMER CHAIRMAN OF STEELMAKER ARMCO INC MR IRVIN WILL REMAIN CHIEF
EXECUTIVE OFFICER UNTIL A SUCCESSOR IS FOUND

FOR YEARS ALEXANDER & ALEXANDER THE NATION'S SECONDLARGEST INSURANCE
BROKER HAS REPORTED DISAPPOINTING EARNINGS AND A STEADY STREAM OF SPECIAL
CHARGES MOST RECENTLY THE COMPANY TOOK A WRITEDOWN TO ACKNOWLEDGE
ACCOUNTING IRREGULARITIES IN ITS BENEFITS CONSULTING BUSINESS

MR IRVIN WHO HAS BEEN WITH ALEXANDER FOR 40 YEARS SAID HE AND THE BOARD
DECIDED HE SHOULD STEP DOWN TO ACCELERATE THE PACE OF CHANGE AND EFFECT
IMPROVEMENTS IN OPERATIONS AND EARNINGS THE COMPANY HAS BEGUN WHAT IT
CALLED AN INTERNATIONAL SEARCH FOR A NEW CHIEF EXECUTIVE

NEW MANAGEMENT IS LIKELY TO SPEED UP COST CUTTING THAT IS ALREADY UNDER WAY
WHICH COULD MEAN MORE LAYOFFS ANALYSTS SAY ALEXANDER NOW EMPLOYS 14200
PEOPLE DOWN FROM 18000 IN 1987 THE 1ASHARE ANNUAL DIVIDEND IS ALSO IN
JEOPARDY IN ADDITION ALEXANDER & ALEXANDER MIGHT SEEK TO GET OUT OF
CUSTOMER SEGMENTS THAT DON'T DELIVER STRONG PROFITS IT HAS ALREADY REDUCED
ITS NUMBER OF SMALL CLIENTS BECAUSE OF THE HIGH COSTS OF SERVICING THAT
BUSINESS

THE CHANGES COULD BE DRAMATIC SAID FIRST BOSTON ANALYST VANESSA WILSON
THE BOARD IS CLEARLY THINKING ABOUT SHAREHOLDER VALUE THE FACT THAT
THEY'RE WILLING TO GET TOUGH IS A WHOLE CHANGE IN CULTURE AT THIS FIRM

INSURANCE BROKERS ACT AS MIDDLEMEN BETWEEN INSURANCE BUYERS MOSTLY
CORPORATIONS AND INSURANCE COMPANIES THEY MAKE MONEY ON BROKERAGE FEES AS
WELL AS INTEREST INCOME EARNED ON THE INSURANCE PREMIUMS THEY COLLECT FROM
CUSTOMERS AND PASS TO INSURANCE COMPANIES

DESPITE CONTINUING PROBLEMS FROM PAST ACQUISITIONS ANALYSTS BELIEVE
ALEXANDER & ALEXANDER'S STRENGTHS MAKE IT ATTRACTIVE TO POTENTIAL ACQUIRERS
WITH 500 OFFICES AROUND THE COUNTRY A BLUECHIP CLIENTELE AND REVENUE OF
MORE THAN 1 BILLION A YEAR ANALYSTS THINK AGGRESSIVE MANAGEMENT COULD
RAPIDLY INCREASE PROFITABILITY

SOME OF ALEXANDER'S PROBLEMS HOWEVER ARE BEYOND ITS CONTROL A SIXYEAR
SLUMP IN COMMERCIAL INSURANCE PRICES HAS DAMPED RESULTS AND UNCERTAINTY
OVER HEALTHCARE REFORM HAS BEEN A DRAG ON ITS CONSULTING BUSINESS WHICH
ACCOUNTS FOR ABOUT 16 OF EARNINGS 9401180120 940118 INTERNATIONAL 
WINTERTHUR WILL BUY DBV MAJORITY STAKE FROM COMMERZBANK  SPECIAL
TO THE WALL STREET JOURNAL

WINTERTHUR SWITZERLAND WINTERTHUR INSURANCE CO SAID IT WILL ACQUIRE A
MAJORITY STAKE IN GERMAN INSURER DBVHOLDING AG FROM GERMANY'S COMMERZBANK
AG

WHILE WINTERTHUR DECLINED TO DISCLOSE TOTAL VALUE OF THE TRANSACTION SOME
ANALYSTS SUGGESTED THE MULTISTEP TRANSACTION MIGHT COST AROUND 700 MILLION
SWISS FRANCS 4736 MILLION

WINTERTHUR HAS HAD TROUBLE EXPANDING MARKET SHARE IN GERMANY LAST MONTH
WINTERTHUR SOLD ITS 28STAKE IN THE SWISS MEDIUMSIZED INSURANCE COMPANY
HELVETIA VERSICHERUNGEN WHICH HAS A STRONG MARKET POSITION IN GERMANY
BECAUSE HELVETIA HAD VOWED TO REMAIN INDEPENDENT ALSO WINTERTHUR SWAPPED
ITS 374HOLDING IN GERMANY'S NORDSTERN ALLGEMEINE VERSICHERUNGS AG FOR 3
OF THE SHARE CAPITAL OF FRANCE'S UNION DES ASSURANCES DE PARIS KNOWN AS
UAP AFTER WINTERTHUR FAILED TO OBTAIN A MAJORITY POSITION IN NORDSTERN

WITH THE DBV ACQUISITION THE SWISS COMPANY'S SHARE OF THE GERMAN MARKET
WILL CLIMB TO AROUND 3 FROM 1 BEFORE

WINTERTHUR SAID THAT COMMERZBANK IN A FIRST STEP WILL TRANSFER ITS MAJORITY
STAKE OF 50 PLUS ONE SHARE IN DBVHOLDING TO AN INTERMEDIATE HOLDING
COMPANY TO BE JOINTLY OWNED BY WINTERTHUR AND COMMERZBANK

WINTERTHUR WILL BECOME A MAJORITY SHAREHOLDER IN THAT INTERMEDIATE COMPANY
TO BE CALLED COMMERZBANK/WINTERTHUR HOLDING BY ACQUIRING A 75INTEREST
LESS ONE SHARE IN THE COURSE OF THIS YEAR WHILE COMMERZBANK WILL END UP
WITH A 25HOLDING PLUS ONE SHARE

IN THE FINAL STAGE OF THE TRANSACTION DBVWINTERTHURHOLDING WILL BE
CREATED WITH COMMERZBANK/WINTERTHUR HOLDING OWNING A 50INTEREST PLUS ONE
SHARE PUBLIC SHAREHOLDERS 25 MINUS TWO SHARES AND THE DBV PUBLIC LEGAL
INSTITUTE 25 PLUS ONE SHARE WINTERTHUR SAID 9401180119 940118 YOUR
MONEY MATTERS SOUTHERN CALIFORNIA EARTHQUAKE HOMEOWNERS FACE LONG
COMPLICATED CLAIMS PROCESS  BY EARL C GOTTSCHALK JR STAFF
REPORTER OF THE WALL STREET JOURNAL

LOS ANGELES EVEN AS AFTERSHOCKS CONTINUE TO RUMBLE THROUGH SOUTHERN
CALIFORNIA HOMEOWNERS ARE BEGINNING TO GRAPPLE WITH THE FINANCIAL
CONSEQUENCES OF YESTERDAY'S DAMAGING EARTHQUAKE AND IF THE EXPERIENCES OF
MIDWEST FLOOD VICTIMS LAST SUMMER AND HOMEOWNERS RAVAGED BY HURRICANE ANDREW
IN 1992 ARE ANY GUIDE THE PROCESS OF FILING INSURANCE CLAIMS IS LIKELY TO
BE A LONG COMPLICATED PROCESS

ONLY ABOUT 25 OF CALIFORNIA HOMEOWNERS HAVE EARTHQUAKE INSURANCE BUT THAT
DOESN'T MEAN VICTIMS OF THE QUAKE WITHOUT THIS SPECIAL COVERAGE HAVE NO HOPE
OF GETTING MONEY TO REPAIR SERIOUS DAMAGE

FIRE DAMAGE AND WATER DAMAGE THOUGH CAUSED BY THE EARTHQUAKE WILL BE
COVERED UNDER HOMEOWNERS' INSURANCE POLICIES SAYS DAVID HURST PUBLIC
RELATIONS SUPERINTENDENT FOR STATE FARM INSURANCE COS STRUCTURAL DAMAGE TO
A HOME CAUSED BY AN EARTHQUAKE ISN'T COVERED BY HOMEOWNERS' INSURANCE
POLICIES

STILL INSURANCE PROFESSIONALS SAY HOMEOWNERS SHOULD CALL THEIR INSURANCE
AGENT TO REPORT THEIR DAMAGE AND SHOULDN'T WORRY NOW WHETHER THEY HAVE
EARTHQUAKE INSURANCE MAKING THE RIGHT MOVES EARLY CAN HASTEN THE PROCESS OF
COLLECTING A CLAIM AND IMPROVE YOUR CHANCES OF COMING OUT WHOLE AFTER A
DISASTER

MANY HOMEOWNERS HAVEN'T PURCHASED EARTHQUAKE INSURANCE BECAUSE IT'S
EXPENSIVE AND HAS A HIGH 10 DEDUCTIBLE SAYS SEAN MOONEY A SPOKESMAN FOR
THE INSURANCE INFORMATION INSTITUTE IN NEW YORK IT COSTS ABOUT 300 A
YEAR FOR EARTHQUAKE INSURANCE THAT WOULD COVER 200000 OF REPLACEMENT
COSTS WITH THE DEDUCTIBLE A HOMEOWNER WOULD NEED DAMAGE EXCEEDING 20000
TO COLLECT ANYTHING STATE FARM CALIFORNIA'S LARGEST EARTHQUAKE INSURER
HAS DECLARED A 30DAY MORATORIUM IN WRITING EARTHQUAKEINSURANCE POLICIES IN
AN AREA COVERING A 100MILE RADIUS OF THE EPICENTER IN THE SAN FERNANDO
VALLEY OTHER COMPANIES ARE EXPECTED TO DO THE SAME

AFTER A HOMEOWNER REPORTS THE DAMAGE TO AN AGENT THERE'S STILL PLENTY TO
DO DON'T EXPECT A CLAIMS REPRESENTATIVE TO SHOW UP AT YOUR HOME SOON UNLESS
YOU HAVE SEVERE DAMAGE THE REASON CLAIMS AGENTS TYPICALLY VISIT THE MOST
SERIOUSLY DAMAGED HOMES FIRST AND WORK THEIR WAY DOWN

IT'S A GOOD IDEA TO GO AHEAD AND MAKE TEMPORARY REPAIRS THAT WILL PROTECT
YOUR PROPERTY LIKE PATCHING UP A ROOF OR COVERING AN EXPOSED WALL
INSURANCE PROS SAY DON'T WAIT TO SEE IF YOU'RE COVERED BUT KEEP YOUR
RECEIPTS FOR MATERIALS YOU BUY

THEN GATHER FAMILY MEMBERS AND FRIENDS AND PREPARE A COMPLETE INVENTORY OF
THE DAMAGE TO YOUR HOME AND POSSESSIONS DO ALL YOU CAN TO DOCUMENT THE
LOSSES IF YOU HAVE A VIDEOCAMERA WALK AROUND THE HOME SHOOTING TAPE OF THE
DAMAGE DESCRIBING IT AS YOU WALK

IF YOU WERE FARSIGHTED ENOUGH TO DOCUMENT THE CONTENTS OF YOUR HOME IN A
PREVIOUS VIDEOTAPE YOU'LL HAVE GREAT BEFOREANDAFTER FOOTAGE TO SHOW YOUR
INSURANCECLAIMS ADJUSTER OTHERWISE TAKE STILL PHOTOS AND MAKE LISTS OF
DAMAGED ITEMS

IF YOUR HOME WAS DESTROYED BY FIRE AS MANY SAN FERNANDO VALLEY HOMES WERE
IN YESTERDAY'S EARTHQUAKE MAKE AN INVENTORY BY VISUALIZING THE CONTENTS
ROOM BY ROOM ONE VICTIM OF THE 1991 OAKLAND CALIF FIRE SAID THE KEY WAS
MAKING THE INVENTORY RIGHT AFTER THE DISASTER AND THEN REPEATING IT THREE
WEEKS LATER HE SAID HE AND HIS WIFE WERE ABLE TO REMEMBER 80 TO 85 OF
THEIR BELONGINGS

THE BIGGEST HASSLES WITH INSURANCE COMPANIES OVER THE OAKLAND FIRE CENTERED
ON DOCUMENTATION OF THE COST OF ANTIQUES PAINTINGS AND OTHER EXPENSIVE
ITEMS THAT WERE DIFFICULT TO VALUE SO BEGIN COLLECTING CANCELED CHECKS
INVOICES AND RECEIPTS OR OTHER PAPERS THAT WILL PROVE THE VALUE OF THE
DESTROYED ITEMS OR STRUCTURES ON YOUR PROPERTY

WHEN THE INSURANCECLAIMS ADJUSTER ARRIVES TAKE THE TIME TO EXPLAIN YOUR
LOSSES FULLY SUSAN ROSS A MIAMI RESIDENT WHO WAS A VICTIM OF HURRICANE
ANDREW IN 1992 SAYS IT WAS IMPORTANT TO DESCRIBE TO HER ADJUSTER WATER
DAMAGE THAT WAS HIDDEN BEHIND A COUCH ONE LESSON SHE SAYS SHE LEARNED
DON'T ASSUME YOUR ADJUSTER IS A MIND READER

KEEP GOOD NOTES OF YOUR DISCUSSIONS WITH THE ADJUSTER WRITING DOWN WHO SAID
WHAT WHERE AND WHEN KEEPING A GOOD CHRONOLOGY IF YOU SHOW YOU ARE PAYING
ATTENTION PROS SAY YOUR CHANCES OF GETTING A GOOD SETTLEMENT GO WAY UP

IT'S A GOOD IDEA TO CONFIRM EVERYTHING IN WRITING AND SEND IMPORTANT
DOCUMENTS TO THE INSURER VIA CERTIFIED MAIL WITH RETURN RECEIPT REQUESTED

AS FOR REPAIRS AND REBUILDING BE ON THE ALERT FOR RIPOFFS GET ESTIMATES
FROM LICENSED REPUTABLE CONTRACTORS MANY INSURANCE COMPANIES ALLOW THE
HOMEOWNER TO COME UP WITH ESTIMATES FROM THREE CONTRACTORS TO DO REPAIRS

FINALLY PERSIST WITH YOUR CLAIM UNTIL YOU ARE SATISFIED JANET TAYLOR A
LOAN OFFICER FOR A SAN FRANCISCO CREDIT UNION SAYS SHE WENT THROUGH 14
DIFFERENT ADJUSTERS IN 14 MONTHS AFTER THE LOMA PRIETA CALIF EARTHQUAKE
IN 1989 HER INSURANCE COMPANY ORIGINALLY OFFERED HER 11000 BUT SHE
FINALLY GOT 89000 AFTER SHE HIRED HER OWN STRUCTURAL ENGINEER

CALIFORNIA STATE INSURANCE COMMISSIONER JOHN GARAMENDI TOLD REPORTERS HE
DOESN'T EXPECT THE SAME CLAIM PROBLEMS FROM YESTERDAY'S QUAKE WE'VE
LEARNED A LOT FROM LOMA PRIETA HE SAID

EARTHQUAKE VICTIMS CAN SPEED AN INSURANCE SETTLEMENT AND INCREASE THE AMOUNT
RECOVERED BY FOLLOWING THESE STEPS

 CALL YOUR INSURANCE AGENT LET YOUR INSURANCE COMPANY KNOW THAT YOU'VE
SUFFERED DAMAGE AND WHERE YOU CAN BE REACHED

 MAKE TEMPORARY REPAIRS PROTECT YOUR HOME FROM FURTHER DAMAGE BY MAKING
NECESSARY EMERGENCY REPAIRS KEEP RECEIPTS TAKE PHOTOS OF DAMAGED AREAS

 PREPARE A DETAILED INVENTORY MAKE A LIST OF ALL DAMAGED OR DESTROYED
PERSONAL PROPERTY INCLUDING THE AGE OF THE ITEMS THEIR COST AT THE TIME OF
PURCHASE AND THEIR ESTIMATED REPLACEMENT COST TODAY

 COLLECT YOUR RECORDS GATHER CANCELED CHECKS INVOICES RECEIPTS OR OTHER
PAPERS THAT WILL SHOW THE VALUE OF DESTROYED PROPERTY IF YOU MADE PHOTOS OR
HOME VIDEOS THAT DOCUMENT YOUR BELONGINGS HAVE THEM READY

 TAKE NOTES KEEP GOOD NOTES OF YOUR DISCUSSIONS WITH THE INSURANCE
ADJUSTER

 AVOID REPAIR RIPOFFS HIRE LICENSED REPUTABLE CONTRACTORS TO PROVIDE
REPAIR ESTIMATES AND DO THE WORK 9401180118 940118 BUSINESS BRIEF 
MCKESSON'S PCS UNIT AGREES TO BUY A STAKE IN INTEGRATED MEDICAL

SAN FRANCISCO MCKESSON CORP SAID ITS PCS HEALTH SYSTEMS UNIT HAS AGREED
TO ACQUIRE A SIGNIFICANT MINORITY INTEREST IN INTEGRATED MEDICAL SYSTEMS
INC A CLOSELY HELD CONCERN THAT PROVIDES COMPUTER NETWORKS LINKING
HEALTHCARE PROVIDERS

THE INVESTMENT IN THE GOLDEN COLO COMPANY WILL BE ANNOUNCED TOMORROW
SAID KEVIN MOLEY SENIOR VICE PRESIDENT OF PCS IN AN INTERVIEW

IMS LINKS HEALTHCARE PROVIDERS SUCH AS PHYSICIANS HOSPITALS LABORATORIES
AND PHARMACIES WITH MANAGEDCARE ORGANIZATIONS AND HEALTHPLAN SPONSORS
SWAPPING DATA OVER COMPUTER NETWORKS LIKE IMS'S CAN CUT PAPERWORK AND COSTS
AND IMPROVE HEALTHCARE QUALITY MR MOLEY SAID

A DOCTOR TIED INTO THE SYSTEM COULD FOR EXAMPLE USE A PERSONAL COMPUTER TO
SEE IF A PLANNED PRESCRIPTION MIGHT BE SUBSTITUTED FOR A LOWERCOST
ALTERNATIVE TO CHECK WHETHER THE PATIENT HAS FILLED PREVIOUS PRESCRIPTIONS
OR TO MAKE SURE THE PLANNED PRESCRIPTION DOESN'T CONFLICT WITH OTHER DRUGS
PRESCRIBED TO THE PATIENT A DOCTOR COULD ALSO USE A PERSONAL COMPUTER TO
TAP INTO THE SYSTEM AND RETRIEVE LAB RESULTS AND IMAGES SUCH AS FROM XRAYS
OR ELECTROCARDIOGRAMS

HAVING THE LINK WITH IMS WILL MAKE PCS WHICH SELLS ITS DRUGPAYMENT
SERVICES TO HEALTH ORGANIZATIONS AND SELFINSURED CORPORATIONS MORE
ATTRACTIVE TO CUSTOMERS MR MOLEY SAID EMPLOYERS AND OTHERS WANT TO
PROVIDE HEALTH CARE IN A MORE EFFICIENT LOWER COST MANNER MR MOLEY SAID
AND ELECTRONICS IS ONE WAY TO DO THAT

THE IMS DEAL GIVES PCS A LEG UP ON COMPETITORS MR MOLEY SAID IMS OPERATES
34 COMMUNITY HEALTHINFORMATION NETWORKS INCLUDING 23 IN THE TOP 50 US
MARKETS IMS'S NETWORKS ARE USED BY MORE THAN 7500 DOCTORS UP FROM 3350
IN 1992 MR MOLEY SAID THERE IS NO OTHER COMPANY THAT HAS THIS DEGREE OF
CONNECTIVITY AS THIS SMALL COMPANY IN GOLDEN COLORADO MR MOLEY SAID
9401180117 940118 EUROPE'S RECESSION CONTINUED TO HURT CHEMICAL MAKERS
IN THE FOURTH QUARTER  BY JAMES P MILLER STAFF REPORTER OF THE
WALL STREET JOURNAL

CHEMICAL MAKERS ESPECIALLY THOSE WITH BIG EXPOSURE TO THE RECESSIONWRACKED
EUROPEAN MARKETPLACE ARE EXPECTED TO SHOW SLUGGISH RESULTS FOR THE FOURTH
QUARTER AS THEY ENDURE CONTINUED LOW PRICES ON BULK PLASTICS AND CHEMICALS

WHILE UNIT VOLUME PERKED UP FOR MANY COMMODITY CHEMICAL PRODUCTS
PARTICULARLY IN NORTH AMERICA PRICES REMAIN UNDER PRESSURE BECAUSE OF
EXCESS GLOBAL CAPACITY

PURE COMMODITY CHEMICAL COMPANIES ARE GENERATING RAZORTHIN PROFITS BECAUSE
OF THE LACK OF PRICING POWER SAYS WERTHEIM SCHRODER & CO ANALYST
CHRISTOPHER H WILLIS

ONE BIT OF GOOD NEWS FOR MAKERS OF COMMODITY CHEMICALS AND PLASTICS MANY
OBSERVERS FEEL THAT THE LONG PRICE DOWNTURN MAY HAVE HIT BOTTOM IN THE
LATTER PART OF 1993 IT'S WIDELY EXPECTED HOWEVER THAT THE INDUSTRY COULD
BUMP ALONG AT LOW LEVELS FOR SOME TIME AND THAT THE CLIMB OUT WILL BE SLOW

WHILE EUROPE'S ECONOMY IS EXPECTED TO STRENGTHEN ONLY SLOWLY DOMESTIC
DEMAND IS SHOWING MORE ZIP HELPED BY INCREASED ACTIVITY IN THE US
CONSTRUCTION AND AUTOMOTIVE SECTORS

BOOSTED BY LOWER INTEREST RATES IMPROVEMENT IN THE US HOUSING INDUSTRY
HAS INCREASED DEMAND FOR SUCH PRODUCTS AS PLUMBING PIPES MADE OF POLYVINYL
CHLORIDE COATINGS FOR ELECTRICAL WIRE AND ADHESIVES LEHMAN BROTHERS
ANALYST THEODORE S SEMEGRAN NOTES THAT THE INDUSTRY IS BECOMING MORE
CONSUMERSENSITIVE THE HOUSING UPTURN INCLUDING INCREASED TURNOVER IN
EXISTING HOMES ALSO BOOSTS DEMAND FOR CARPET FIBERS PLASTIC FOR CONSUMER
DURABLES AND THE LIKE HE SAYS WHAT ACTUALLY HAS BECOME THE MARKET FOR
CHEMICALS ARE APPLIANCES HOME FURNISHINGS AS WELL AS WHAT YOU MIGHT CALL
THE SLIGHTLY MORE CYCLICAL AREAS SUCH AS HOUSING OR AUTOS MR SEMEGRAN
SAYS

FOR PETROCHEMICAL MAKERS WHO USE PETROLEUM PRODUCTS AS FEEDSTOCK 
DECLINING OIL PRICES MIGHT BE EXPECTED TO HELP BUT ANALYSTS SAY THAT
CURRENT PRICING FOR SUCH MAINSTAYS AS ETHYLENE AND PROPYLENE MAKES ANY SUCH
BENEFIT MODEST

COSTCUTTING EFFORTS WILL STRENGTHEN MARGINS AT THE INCREASING NUMBER OF
COMPANIES THAT INSTITUTED THEM

DUPONT CO IN WILMINGTON DEL WILL NEED THE MARGIN BOOST WHILE SOME
SEGMENTS OF ITS US OPERATIONS ENJOYED INCREASED VOLUME IN THE JUSTENDED
FOURTH PERIOD EARNINGS AT THE CONOCO ENERGY UNIT ARE UNDER PRESSURE FROM
DECLINING OIL PRICES AND A RECENTLY SETTLED COAL STRIKE ANALYSTS ESTIMATE
THAT DUPONT'S EARNINGS WILL HIT ABOUT 46 CENTS A SHARE

DOW CHEMICAL CO'S COST REDUCTIONS WILL ALSO PROVIDE SOME PAYOFF FOR THE
MIDLAND MICH CONCERN ANALYSTS PREDICT BUT NEGATIVES INCLUDE ITS BIG
EXPOSURE IN THE EUROPEAN MARKETPLACE AND IN THE COMMODITY SECTOR AS WELL AS
CONTINUED SOFTNESS AT ITS 71OWNED MARION MERRELL DOW INC DRUG SUBSIDIARY
ANALYSTS EXPECT DOW TO EARN ABOUT 32 CENTS A SHARE THAT EXCLUDES THE 192
MILLION OR 70CENTASHARE FOURTHQUARTER CHARGE THE CHEMICAL MAKER WILL
TAKE AS ITS PORTION OF A CHARGE PLANNED BY ITS 50OWNED DOW CORNING JOINT
VENTURE DOW CHEMICAL'S LATEST QUARTER IS ALSO EXPECTED TO REFLECT
APPROXIMATELY A 100 MILLION PRETAX GAIN LINKED TO A CANADIAN UNIT'S ASSET
DISPOSITION

GEON CO NOW COMPLETELY INDEPENDENT OF FORMER PARENT BF GOODRICH CO
EXPECTS TO REPORT BETTER THAN BREAKEVEN EARNINGS FOR THE SEASONALLY SLOW
FOURTH QUARTER THAT MARKS A SUBSTANTIAL IMPROVEMENT OVER THE BIG OPERATING
LOSS THE INDEPENDENCE OHIO COMPANY REPORTED AS A GOODRICH UNIT A YEAR AGO
WERTHEIM SCHRODER'S MR WILLIS WHO RECENTLY RAISED HIS EARNINGS PROJECTION
TO FIVE CENTS A SHARE FROM BREAKEVEN NOTED THAT A FOURTHQUARTER PROFIT
FOR GEON SPEAKS VOLUMES FOR THE MAJOR TURNAROUND THAT MANAGEMENT HAS
ENGINEERED IN THE PAST TWO YEARS ANALYSTS ESTIMATE NINE CENTS A SHARE

ANALYSTS HAD EXPECTED UNION CARBIDE CORP TO REPORT PERSHARE EARNINGS OF
ABOUT 18 CENTS BUT YESTERDAY THE COMPANY SAID IT ANTICIPATES EARNINGS OF
ABOUT 25 CENTS THE DANBURY CONN CONCERN SAID THAT WHILE MARGINS FOR SOME
OF ITS MAJOR PRODUCTS WERE DOWN FROM THE YEARAGO PERIOD FOURTHQUARTER
EARNINGS BENEFITED FROM CONTINUED REDUCTIONS IN FIXED COSTS AND INTEREST AS
WELL AS STRONG PERFORMANCE FROM ITS PARTNERSHIPS AND CORPORATE JOINT
VENTURES

MONSANTO CO WHICH BECAUSE OF SEASONAL FACTORS DOESN'T GET THE BIG PUSH
IN THE FOURTH PERIOD FROM ITS AGRICULTURAL DIVISION THAT IT DOES IN SOME
OTHER QUARTERS IS STILL EXPECTED TO SHOW SOLID IMPROVEMENT OVER THE
YEARAGO PERIOD THAT'S IN PART BECAUSE OF STRONGER SALES TO DOMESTIC AUTO
MAKERS MODEST PROFITS FROM THE COMPANY'S SEARLE PHARMACEUTICALS UNIT AND
COST REDUCTIONS ANALYSTS EXPECT EARNINGS OF ABOUT 40 CENTS A SHARE

COMPANIES THAT PRODUCE VALUEADDED OR SPECIALIZED CHEMICALS WILL LIKELY
ENJOY BRIGHTER RESULTS SUCH PRODUCTS WHICH TYPICALLY COMMAND A HIGHER
MARGIN AREN'T AS SUBJECT TO THE OVERSUPPLY THAT IS PLAGUING THE COMMODITIES
SECTOR 9401180116 940118 ECONOMY EUROPEAN RECOVERY APPEARS UNDER WAY 
 BUSINESS WON'T PICK UP IMMEDIATELY BUT WORST IS OVER  BY
DANA MILBANK AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL

WITH ALL THE OMINOUS RUMBLINGS COMING FROM EUROPE'S ECONOMIES IT'S EASY TO
MISS THIS FRAIL WHISPER THE RECOVERY HAS BEGUN

AFTER TWO YEARS OF RECESSION CORPORATE EXECUTIVES AND ECONOMISTS IN EUROPE
AGREE THAT THE WORST IS OVER THOUGH IT COULD BE QUITE A WHILE BEFORE
BUSINESS REALLY PICKS UP

LOWER INTEREST RATES AND DEVALUED CURRENCIES HAVE BOOSTED EXPORTS AND
ENCOURAGED STOCK MARKETS THE EUROPEAN UNION COMMISSION FORECASTS A 13
INFLATIONADJUSTED EXPANSION AMONG ITS MEMBER COUNTRIES THIS YEAR AFTER A
04 CONTRACTION IN 1993 INFLATION MEANWHILE REMAINS SURPRISINGLY LOW
GIVING EUROPE'S CENTRAL BANKS PLENTY OF ROOM TO SPUR THEIR ECONOMIES FURTHER
IN 1994

THE LOWEST POINT HAS BEEN REACHED AND CUSTOMERS ARE COMING BACK AND
SPEEDING ORDERS SAYS WILLY SNAED VICE PRESIDENT OF BELGIUM'S BEKAERT
GROUP A BIG WIRE MAKER BASED IN KORTRIJK ALONG THE FRENCH BORDER THOUGH
NOT EXPECTING SUBSTANTIAL IMPROVEMENT THE COMPANY SAYS THERE MAY BE SOME
LIGHT

CHUPA CHUPS A CLOSELY HELD CANDY MAKER IN SPAIN CAN ALREADY TASTE THE
RECOVERY AFTER A FLAT 1993 IT ANTICIPATES A 20 TO 30 INCREASE IN ITS
200 MILLION IN REVENUE THIS YEAR THE RESULT OF THE DEVALUATION IN THE
PESETA I'M RELIEVED SAYS MIGUEL OTERO HEAD OF THE COMPANY'S
INTERNATIONAL BUSINESS

OVERALL ORDERS ARE A BIT IMPROVED ADDS MANFRED SOEHNLEIN HEAD OF
ECONOMIC RESEARCH AT GERMAN MACHINERY MAKER MANNESMANN AG WHICH SAYS ITS
PRODUCTION WILL RISE 15 TO 25 IN 1994 AFTER DECLINES IN 1992 AND 1993
WITH MOST NEW ORDERS COMING FROM OUTSIDE OF WESTERN EUROPE HOWEVER IT
WILL TAKE A LOT OF TIME TO REACH PREVIOUS LEVELS

THE US ECONOMY MEANWHILE IS PICKING UP MOMENTUM EVEN WITHOUT THE BOOST
IN DEMAND FOR ITS PRODUCTS THAT WOULD ACCOMPANY A EUROPEAN RECOVERY WITH
US MANUFACTURERS INCREASINGLY COMPETITIVE IN GLOBAL MARKETS GROWTH IN
EUROPE COULD ONLY MAKE THINGS BETTER

DESPITE THE SLUMP WESTERN EUROPE STILL ACCOUNTED FOR ABOUT ONEQUARTER OF
ALL US MERCHANDISE EXPORTS LAST YEAR THE OUTLOOK FOR THE US HINGES
CRITICALLY ON EXPORTS SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL
ASSOCIATION OF MANUFACTURERS EXPORTS OF ALL KINDS NOW AMOUNT TO 10 OF
TOTAL OUTPUT IN THE US SMALL BY EUROPEAN STANDARDS BUT SIGNIFICANT

WEFA GROUP A BALA CYNWYD PA FORECASTING FIRM PREDICTS THAT THE US
ECONOMY WILL GROW BY A RESPECTABLE 3 THIS YEAR PARTLY BECAUSE IT
ANTICIPATES MODEST RECOVERIES IN EUROPE AND IN JAPAN

LIKE THE US AND BRITISH RECOVERIES BEFORE IT THE RECOVERY IN CONTINENTAL
EUROPE WON'T BE VERY SATISFYING INITIALLY WITH UNEMPLOYMENT NEAR 12 REAL
INCOME FLAT AND MOST ECONOMIES FORECAST TO GROW AT A RATE OF 1 OR LESS THIS
YEAR NOT EVERYONE WILL SEE MUCH EVIDENCE OF RECOVERY AND WITH BIG
STRUCTURAL PROBLEMS HINDERING EUROPEAN INDUSTRY AND STRETCHED GOVERNMENT
BUDGETS IT COULD BE MORE THAN A YEAR BEFORE GROWTH REACHES RESPECTABLE
LEVELS OF 2 OR 3

SAYS IAN MCCAFFERTY NATIONAL WESTMINSTER'S EUROPEAN ECONOMIST WE'VE
BOTTOMED OUT IN MUCH OF EUROPE AND IN THE FIRST HALF WE'LL SEE THE
RESTORATION OF CONFIDENCE AND THE PICKUP OF ACTIVITY STILL HE CAUTIONS
AS FAR AS THE MAN ON THE STREET IS CONCERNED THAT'S NOT A PERCEPTIVE
RECOVERY

THERE ARE MANY CAVEATS IN FACT GROWTH THROUGHOUT THE CONTINENT WON'T COME
NEAR LEVELS NEEDED TO REDUCE THE RANKS OF EUROPE'S 22 MILLION UNEMPLOYED
AND MUCH OF THE GOOD NEWS SO FAR HAS BEEN CONTRIBUTED BY GOVERNMENTS' FISCAL
STIMULI AND EXPORTS RATHER THAN TRUE IMPROVEMENT THE EUROPEAN CONSUMER IT
SEEMS IS STILL NAPPING

MOREOVER EUROPE'S ECONOMIC RESTRUCTURING HAS ONLY JUST BEGUN IT COULD TAKE
YEARS TO OVERCOME EUROPE'S RIGID LABOR MARKETS HIGH PRODUCTION COSTS
HEAVILY REGULATED MARKETS LONGTERM UNEMPLOYMENT AND PUBLICSECTOR DEBT IF
NOT CORRECTED ECONOMISTS WARN THAT THE STRUCTURAL HANDICAPS COULD STUNT
GROWTH

THERE'S ALSO CONCERN THAT THE GOVERNMENT DEFICIT SPENDING USED TO STIMULATE
THE RECOVERY COULD HAVE THE REVERSE EFFECT IF HEALTHY GROWTH DOESN'T FOLLOW
SOON AT THE EU SUMMIT IN BRUSSELS LAST MONTH EUROPEAN LEADERS AGREED TO
INCREASE ANNUAL SPENDING ON INFRASTRUCTURE PROJECTS TO 20 BILLION EUROPEAN
CURRENCY UNITS 226 BILLION FROM AN ALREADY BUDGETED 12 BILLION ECUS TO
HELP CREATE JOBS BUT IN BELGIUM AND ITALY WHERE GOVERNMENT DEBT EXCEEDS
100 OF GDP INTEREST PAYMENTS ALREADY EAT UP ABOUT A QUARTER AND A THIRD
RESPECTIVELY OF THE GOVERNMENTS' BUDGETS

HIGHER EXPORTS AREN'T ENOUGH BY THEMSELVES TO SPARK RECOVERY THOUGH
SHIPMENTS ARE RISING THE BENEFITS ARE LIMITED BECAUSE WESTERN EUROPEAN
COUNTRIES DO MORE THAN TWOTHIRDS OF THEIR EXPORT TRADING WITH EACH OTHER

BUT WHILE FEW DOUBT THESE FACTORS WILL SLOW THE GROWTH THERE'S AN EQUAL
AMOUNT OF CONFIDENCE THAT THE ECONOMIES ARE GROWING ECONOMISTS AND
GOVERNMENTS HAVE FORECAST GROWTH FOR VIRTUALLY EVERY COUNTRY IN EUROPE IN
1994

EVEN GERMANY THE LARGEST ECONOMY IN EUROPE AND THE WORST HIT BY THE
RECESSION MAY FINALLY BE RECOVERING ALBEIT SLOWER THAN MANY OTHER
COUNTRIES WESTERN GERMANY COULD SHOW A MODEST 05 IMPROVEMENT SOME
ECONOMISTS SAY THE GOVERNMENT'S INDEPENDENT COUNCIL OF ECONOMIC ADVISERS
PERHAPS WEIGHING THE IMPACT OF NEW TAXES THIS YEAR FORECASTS ZERO GROWTH
AFTER A CONTRACTION OF 19 IN 1993 GDP IN BOTH THE SECOND AND
THIRDQUARTERS SHOWED 05 REAL GROWTH FROM THE PRECEDING QUARTER EASTERN
GERMANY'S ECONOMY COULD SHOW ABOUT 7 GDP GROWTH THIS YEAR AFTER EXPANDING
BY 63 IN 1993

THE GOOD NEWS FROM GERMANY IS THAT ANNUAL INFLATION IS SEEN SETTLING TO
AROUND 3 FROM A 1993 AVERAGE OF 35 DESPITE CONTINUED HIGH GOVERNMENT
SPENDING FOR GERMAN UNITY THE FEDERATION OF GERMAN INDUSTRY'S BUSINESS
CLIMATE INDICATOR HAS SHOWN SEVERAL MONTHS OF IMPROVEMENT SAYS ECONOMIST
SIEGFRIED UTZIG WE SEE MORE AND MORE POSITIVE ASPECTS IN THE ECONOMIC
SITUATION

AFTER SHRINKING BY 1 IN 1993 FRANCE'S GDP SHOULD RISE 1 IN 1994
INVENTORIES HAVE BEEN FALLING AND THE FRENCH HOUSING MARKET HAS SHOWN SOME
LIFE

COUNTRIES THAT BROKE FROM THE EUROPEAN MONETARY SYSTEM AND DEVALUED THEIR
CURRENCIES ARE EXPECTED TO SEE EXPORTDRIVEN GROWTH EXCEEDING THAT OF THEIR
NEIGHBORS THE EU COMMISSION EXPECTS THE UK'S ECONOMY TO EXPAND BY 25
THE LONDON BUSINESS SCHOOL'S CENTER FOR ECONOMIC FORECASTING SAYS ITALY'S
ECONOMY COULD GROW BY 25 IN 1994 AFTER SLIPPING 01 LAST YEAR WHILE
NATIONAL WESTMINSTER SEES SPAIN'S ECONOMY GROWING AT 14 AFTER A 12
CONTRACTION 9401180114 940118 TECHNOLOGY ECOGEN PARTNER TO SELL
PRODUCTS

LANGHORN PA ECOGEN INC A BIOLOGICAL PESTCONTROL CONCERN SAID ITS
MARKETING PARTNER IN PARIS RECEIVED PERMISSION TO MARKET TWO BIOINSECTICIDES
IN FRANCE

THE PARTNER PROCIDAROUSSEL UCLAF RECEIVED CLEARANCE FOR BACILLUS
THURINGIENSISBASED PRODUCTS KNOWN AS CUTLASS WHICH WILL BE USED TO FIGHT
GRAPE AND VEGETABLE CROP PESTS UNDER THE NAME ECOTECH BIO AND FOR CONDOR
TO BE SOLD AS ECOTECH PRO AS PROTECTION AGAINST PINE TREE CATERPILLARS
PROCIDA IS THE MARKETING DIVISION OF ROUSSEL UCLAF SA 9401180113 940118
PEOPLE PATTERNS  BY ALAN L OTTEN

MIGRATION PATTERNS GROW EVER MORE COMPLEX AND POTENTIALLY TROUBLESOME

UNIVERSITY OF MICHIGAN DEMOGRAPHER WILLIAM H FREY ANALYZED 1990 CENSUS DATA
TO SEE HOW IMMIGRATION AND MIGRATION FLOWS WITHIN THE US AFFECTED STATES
AND REGIONS BETWEEN 1985 AND 1990

DR FREY FOUND THAT HISPANIC ASIAN AND BLACK IMMIGRANTS FROM ABROAD
PREDICTABLY CLUSTERED IN THE HALFDOZEN EASILY ACCESSIBLE STATES WITH LARGE
MINORITY POPULATIONS CALIFORNIA NEW YORK TEXAS NEW JERSEY ILLINOIS AND
MASSACHUSETTS AT THE SAME TIME HOWEVER RESIDENTS OF THESE STATES WERE
LEAVING IN DROVES AND ALL BUT CALIFORNIA LOST SUBSTANTIALLY MORE PEOPLE TO
OTHER STATES THAN THEY GAINED FROM THEM EVEN CALIFORNIA LONG A MECCA FOR
RESIDENTS FROM OTHER STATES HAD AN UNUSUALLY SMALL INCREASE OF POPULATION
GAIN FROM INTERNAL MIGRATION

THOSE LEAVING THE SIX STATES INCLUDED STRIKINGLY LARGE NUMBERS OF
LESSSKILLED LOWERINCOME WHITES SOME HAD LOST THEIR JOBS OFTEN TO
IMMIGRANTS BUT DR FREY BELIEVES MANY WERE SEEKING TO DISTANCE THEMSELVES
FROM THE NEWCOMERS OFTEN MOVING ONLY TO NEIGHBORING STATES

AT THE OTHER END OF THE SCALE WERE STATES LARGELY IN THE SOUTHEAST AND THE
WEST WHERE PEOPLE COMING IN FROM OTHER STATES FAR OUTNUMBERED THOSE
LEAVING BIGGEST GAINERS WERE FLORIDA GEORGIA NORTH CAROLINA VIRGINIA
WASHINGTON AND ARIZONA STRONG ECONOMIES AND/OR GOOD CLIMATE WERE THE MAIN
ATTRACTIONS

EXCEPT FOR FLORIDA MOST HAD COMPARATIVELY LOW IMMIGRATION FROM ABROAD EVEN
IN FLORIDA THE NET GAIN FROM INTERNAL MIGRATION WAS ALMOST THREE TIMES THAT
FROM ABROAD

AND THE ECONOMICALLY DEPRESSED STATES IN THE UPPER MIDWEST AND OIL PATCH SAW
MINIMAL IMMIGRATION FROM ABROAD AND OTHER STATES BUT HAD LARGE OUTFLOWS OF
RESIDENTS MICHIGAN OHIO IOWA OKLAHOMA AND LOUISIANA WERE AMONG THESE
STATES THE EXODUS INCLUDED SUBSTANTIAL NUMBERS OF BETTEREDUCATED MEN AND
WOMEN HEADING FOR GREENER PASTURES IN THE SOUTHEAST AND PACIFIC COAST

DR FREY WORRIES ABOUT A BALKANIZING PATTERN EMERGING FROM THESE TRENDS
HE WARNS THAT THE CONTINUATION OF THESE PROCESSES A MINORITYDOMINATED
IMMIGRATION COUPLED WITH AN INTERNAL MIGRATION WHITE FLIGHT' COULD LEAD
TO SHARPLY DIVERGENT RACE AND SOCIODEMOGRAPHIC STRUCTURES ACROSS BROAD
REGIONS AND STATES

VIOLENTCRIME VICTIMS HAVE INCREASED SINCE 1973 BUT THE NUMBER OF VICTIMS
OF OTHER CRIMES HAS DECREASED

THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS HAS ANALYZED 20YEAR TRENDS
SHOWN BY THE ANNUAL NATIONAL CRIME VICTIMIZATION SURVEY WHICH SINCE 1973
HAS TRACKED CRIME BY INTERVIEWING LARGE NATIONAL SAMPLES OF HOUSEHOLDS THE
SURVEY COVERS RAPE ROBBERY ASSAULT BURGLARY PERSONAL AND HOUSEHOLD THEFT
AND MOTORVEHICLE THEFT

THE ANALYSIS REVEALS THAT THE NUMBER OF PEOPLE VICTIMIZED BY THE COVERED
CRIMES HAD FALLEN 6 BY 1992 THERE WERE 357 MILLION VICTIMIZATIONS IN
1973 THE NUMBER PEAKED AT 415 MILLION IN 1981 AND THEN DROPPED FAIRLY
STEADILY TO 336 MILLION IN 1992 THE BIGGEST DECLINES CAME IN THEFTS FROM
INDIVIDUALS AND HOMES

VIOLENT CRIMES ROBBERY RAPE AND ASSAULT PRESENTED A DIFFERENT
PICTURE UP 24 BY 1992 THE REPORT NOTED THAT BLACK MEN AND WOMEN
PARTICULARLY TEENAGERS WERE VICTIMIZED BY VIOLENT CRIMES IN 1992 AT THE
HIGHEST RATES EVER RECORDED VICTIMIZATIONS OF WHITE TEENAGERS ALSO ROSE

MALE VICTIMS OF VIOLENT CRIMES ARE FAR MORE LIKELY TO BE VICTIMIZED BY
STRANGERS THAN BY ACQUAINTANCES THE BUREAU REPORTS BUT FEMALE VICTIMS ARE
AS LIKELY TO BE VICTIMIZED BY A HUSBAND BOYFRIEND OR OTHER INTIMATE AS BY A
STRANGER MOST VIOLENTCRIME VICTIMS ARE VICTIMIZED BY PEOPLE OF THE SAME
RACE ABOUT 75 OF WHITE VICTIMS ARE VICTIMIZED BY WHITES AND ABOUT 85 OF
BLACK VICTIMS ARE VICTIMIZED BY BLACKS

HISPANIC OR LATINO IT'S A CONTROVERSIAL QUESTION

THE CENSUS BUREAU AND OTHER FEDERAL AGENCIES USE THE TERM HISPANIC TO
DESCRIBE AMERICANS WHOSE ORIGIN WAS IN THE SPANISHSPEAKING COUNTRIES OF THE
WESTERN WORLD MANY OTHER PUBLIC AND PRIVATE GROUPS FOLLOW THAT LEAD

MOST NEWS MEDIA GENERALLY USE HISPANIC WHEN DISCUSSING BROAD NATIONAL
TRENDS BUT THOSE IN AREAS WITH LARGE POPULATIONS FROM MEXICO AND CENTRAL
AMERICA OFTEN SWITCH TO LATINO WHEN REFERRING TO THE LOCAL COMMUNITY

ACADEMICS AND LIBERAL GROUPS INCREASINGLY FAVOR LATINO THEY CLAIM IT MORE
ACCURATELY DESCRIBES THE ORIGIN OF MOST SPANISHSPEAKING US RESIDENTS
MOREOVER THEY SAY HISPANIC BECAME OFFICIAL GOVERNMENT NOMENCLATURE
DURING THE NIXON ADMINISTRATION AND THAT'S A MARK AGAINST IT

MANY SPANISHSPEAKING GROUPS AREN'T HAPPY WITH EITHER AND PREFER TERMS
INDICATING THEIR COUNTRY OF ORIGIN SUCH AS MEXICANAMERICAN PUERTO RICAN
OR CUBANAMERICAN

SPECIALISTS WHO HAVE DELVED INTO THE ISSUE SAY PREFERENCE TENDS TO VARY BY
REGION AND SOCIOECONOMIC CLASS BUSINESSMEN AND THOSE WHO HAVE BEEN IN THE
US FOR MANY YEARS SEEM TO PREFER HISPANIC WHILE POORER GROUPS OR MORE
RECENT IMMIGRANTS OPT FOR LATINO

ACTUALLY THE SPECIALISTS SAY THE TWO TERMS COVER PRETTY MUCH THE SAME
GROUPS BUT THAT DOESN'T LESSEN THE DEPTH OF FEELING OVER THE ISSUE SAYS
ANDRES JIMINEZ DIRECTOR OF THE CALIFORNIA POLICY SEMINAR OF THE UNIVERSITY
OF CALIFORNIA IT'S A MINEFIELD

THE CENSUS BUREAU HAS CHOSEN THE SITES FOR A 1995 TEST OF SAMPLING AND OTHER
NEW TECHNIQUES TO BE USED IN THE NEXT DECENNIAL CENSUS THEY ARE NEW HAVEN
CONN OAKLAND CALIF PATERSON NJ AND SIX RURAL PARISHES IN
NORTHWESTERN LOUISIANA  ALMOST HALF OF ALL VISITS TO PSYCHIATRISTS ARE
MADE BY PEOPLE BETWEEN 25 AND 44 YEARS OLD ACCORDING TO A STUDY BY THE
NATIONAL CENTER FOR HEALTH STATISTICS 9401180112 940118 AUSTRIAN CONSUMER
PRICE RISE

VIENNA CONSUMER PRICES IN AUSTRIA ROSE 02 IN DECEMBER FROM NOVEMBER AND
WERE UP 35 FROM THE YEAREARLIER PERIOD THE CENTRAL OFFICE OF STATISTICS
SAID

IN NOVEMBER CONSUMER PRICES WERE ALSO UP 35 FROM A YEAR EARLIER THE
STATISTICS OFFICE SAID IN DECEMBER THE CONSUMER PRICE INDEX STOOD AT
1228 PRICES IN 1986 ARE EQUAL TO 100

FOR ALL OF 1993 INFLATION AVERAGED 36 DOWN FROM 42 IN 1992 THE
CONSUMER PRICE INDEX IN 1993 AVERAGED 1219 9401180111 940118 TECHNOLOGY
 LONDON LIBEL TRIAL BEGINS OVER REPORTS ON HALCION

KALAMAZOO MICH UPJOHN CO SAID A TRIAL INVOLVING TWO LIBEL SUITS FILED
IN THE UNITED KINGDOM OVER NEWS REPORTS CRITICAL OF ITS SLEEPING DRUG
HALCION OPENED YESTERDAY IN LONDON

UPJOHN FILED A LIBEL SUIT IN JANUARY 1992 AGAINST THE BRITISH BROADCASTING
CORP AND BBC REPORTER TOM MANGOLD ON OCT 14 1991 THE BBC AIRED A STORY
ENTITLED THE HALCION NIGHTMARE ANOTHER SUIT WAS FILED AGAINST IAN OSWALD
A SCOTTISH PSYCHIATRIST WHO MADE CRITICAL COMMENTS ABOUT UPJOHN AND THE DRUG
IN A JANUARY 1992 NEW YORK TIMES ARTICLE THE TIMES WASN'T SUED

BOTH SUITS SEEK AN UNSPECIFIED AMOUNT OF DAMAGES CRITICS CLAIM HALCION
USERS HAVE A HIGHER INCIDENCE OF ADVERSE REACTIONS INCLUDING ANXIETY
AGGRESSIVE BEHAVIOR AND CONFUSION THAN USERS OF SIMILAR DRUGS UPJOHN HAS
MAINTAINED THAT HALCION IS SAFE

A THIRD SUIT FILED AGAINST LONDON'S SUNDAY EXPRESS NEWSPAPER OVER AN
ARTICLE THAT RAN IN 1991 WAS SETTLED BEFORE TRIAL AN UPJOHN SPOKESWOMAN
SAID 9401180110 940118 WHO'S NEWS LEHMAN BROTHERS INTERNATIONAL

NEW YORK LEHMAN BROTHERS INTERNATIONAL NAMED FREDERICK C APPEL MANAGING
DIRECTOR IN CHARGE OF ITS EQUITY DERIVATIVES BUSINESS FOR EUROPE AND THE
UK A NEWLY CREATED POST

THE COMPANY SAID MR APPEL'S APPOINTMENT EFFECTIVE AT THE END OF THE MONTH
UNDERSCORES LEHMAN BROTHERS COMMITMENT TO DERIVATIVES ESPECIALLY IN THE
INTERNATIONAL MARKETS MR APPEL MOST RECENTLY WORKED FOR SALOMON BROTHERS
INTERNATIONAL A UNIT OF SALOMON INC AS HEAD OF UK EQUITY AND
DERIVATIVES BUSINESS

LEHMAN BROTHERS INTERNATIONAL LONDON IS A UNIT OF AMERICAN EXPRESS CO'S
LEHMAN BROTHERS UNIT 9401180109 940118 INTERNATIONAL RESIGNATION
PUSHES RUBLE TO LOW AGAINST THE DOLLAR  SPECIAL TO THE WALL STREET
JOURNAL

MOSCOW THE RUBLE FELL 34 TO A RECORD LOW AGAINST THE DOLLAR IN MOSCOW
AFTER SUNDAY'S RESIGNATION OF FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR
ARCHITECT OF RUSSIA'S ECONOMIC REFORMS

MR GAIDAR'S ANNOUNCEMENT AGGRAVATED WORRIES ON THE MOSCOW INTERBANK
CURRENCY EXCHANGE THAT FOES OF ECONOMICSTABILIZATION POLICIES WERE GAINING
THE UPPER HAND IN THE GOVERNMENT

THE DOLLAR WAS FIXED AT 1402 RUBLES MONDAY UP FROM FRIDAY'S 1356 RUBLES
THE PREVIOUS RECORD

MONDAY OPENED WITH A 28 MILLION IMBALANCE BETWEEN DEMAND FOR THE DOLLAR AND
SUPPLY THE HUGE VOLUME OF BUY ORDERS DROVE THE RATE HIGHER TRADERS SAID
PARTICIPANTS SAID CENTRALBANK INTERVENTION APPEARED MODEST

ALEXANDER AFONIN CHIEF DEALER AT CREDO BANK SAID THE FLURRY OF DOLLAR
DEMAND SEEN MONDAY ISN'T LIKELY TO BE REPEATED IN THE COMING DAYS THOUGH
BUYING WILL LIKELY REMAIN HEAVY BUT HE PREDICTED THAT IF THE GOVERNMENT
DOESN'T PROVIDE SOME CLEAR SIGN THAT CURRENT FINANCIALSTABILIZATION
POLICIES WILL CONTINUE THE RUBLE WILL DECLINE FURTHER 9401180108 940118
WPI GROUP TO BUY TERMIFLEX

WARNER NH WPI GROUP INC SAID IT WILL ACQUIRE TERMIFLEX CORP IN A
STOCK SWAP

WPI SAID IT EXPECTS A DEFINITIVE AGREEMENT TO BE SIGNED BY WEEK'S END UNDER
WHICH TERMIFLEX SHAREHOLDERS WOULD RECEIVE 12 WPI COMMON SHARES FOR EACH
TERMIFLEX SHARE THE VALUE OF THE PROPOSED TRANSACTION WASN'T GIVEN

TERMIFLEX A MERRIMACK NH MAKER OF COMPUTER TERMINALS CURRENTLY HAS
ABOUT 135 MILLION SHARES OUTSTANDING WPI A WARNER NH POWERCONVERSION
COMPONENTS CONCERN HAS ABOUT 37 MILLION COMMON SHARES OUTSTANDING
9401180107 940118 FIRST CHICAGO CORP REPORTS 27 JUMP IN 4THQUARTER
NET  BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO FIRST CHICAGO CORP REPORTED A 27 INCREASE IN FOURTHQUARTER NET
INCOME DRIVEN BY STRONG CREDITCARD EARNINGS

THE GAIN EXCEEDED ANALYSTS' EXPECTATIONS ON THE NEW YORK STOCK EXCHANGE
YESTERDAY THE BANKING COMPANY'S STOCK CLOSED AT 42375 UP 375 CENTS IN
COMPOSITE TRADING

NET FOR THE QUARTER ROSE TO 1728 MILLION OR 181 A SHARE FROM A
YEAREARLIER 1366 MILLION OR 153 A SHARE PERSHARE EARNINGS ROSE
SLIGHTLY LESS 18 DUE TO 1993'S INCREASED NUMBER OF SHARES OUTSTANDING

FOR THE YEAR NET INCOME WAS 8045 MILLION UP FROM THE PREVIOUS YEAR'S
935 MILLION

IN SPITE OF GROWING COMPETITION AMONG CREDITCARD ISSUERS FIRST CHICAGO'S
CREDITCARD RECEIVABLES GREW BY 11 TO 107 BILLION FROM THE THIRD
QUARTER CREDIT CARDS ARE THE KEY FUNDAMENTAL SAID ART SOTER A BANK
ANALYST WITH MORGAN STANLEY & CO IT'S THE MOST PROFITABLE MAJOR BUSINESS
THEY HAVE AND IT'S THEIR GREATEST GROWTH BUSINESS

FIRST CHICAGO WAS ONE OF THE FIRST ISSUERS TO INTRODUCE NOFEE CARDS THEY
KNOW HOW TO SEGMENT THE MARKET MR SOTER SAID AND THEY HAVE A PRETTY
LOWCOST OPERATION IN AN INTERVIEW RICHARD L THOMAS THE BANK'S
CHAIRMAN SAID WE THINK WE ARE ONE OF THE BEST IN TERMS OF EFFICIENCY

SOME ANALYSTS HOWEVER EXPRESSED CONCERN THAT THE BANK'S EARNINGS ARE
OVERLY DEPENDENT ON THE CARD BUSINESS WHEN VENTURECAPITAL EARNINGS ARE
EXCLUDED JUDAH KRAUSHAAR AN ANALYST WITH MERRILL LYNCH & CO ESTIMATED
THAT THE CARD BUSINESS CONTRIBUTES MORE THAN 40 OF THE COMPANY'S PROFIT
MR THOMAS HOWEVER PLAYED DOWN THE CONCERN THE QUESTION DOES ARISE HOW
BIG A CREDITCARD BUSINESS SHOULD WE HAVE BUT THAT IS A GOOD PROBLEM TO
HAVE IT'S A GOOD BUSINESS

VENTURECAPITAL INVESTMENTS WHICH PROVIDED MORE THAN ONETHIRD OF THE
BANK'S PROFIT IN THE PAST TWO YEARS PRODUCED A MODEST PROFIT IN THE
QUARTERREFLECTING BOTH SALES AND CHANGES IN MARKET VALUE ALTHOUGH THE
BANK'S LARGEST HOLDING 95 MILLION SHARES OF NEXTEL COMMUNICATIONS INC
FELL IN VALUE DURING THE QUARTER PROFIT FROM OTHER INVESTMENTS WAS LARGE
ENOUGH TO PRODUCE AN OVERALL GAIN OF 7 MILLION DOWN FROM 48 MILLION IN
THE YEAREARLIER QUARTER TOTAL EQUITYSECURITIES GAINS WERE 40 MILLION
DOWN FROM A YEAREARLIER 892 MILLION

THE BANK'S ASSET QUALITY CONTINUED TO IMPROVE DURING THE PERIOD AS OF THE
END OF THE YEAR 89 OF THE PORTFOLIO SLATED FOR DISPOSITION HAD BEEN
LIQUIDATED AND NONPERFORMING LOANS WERE 277 MILLION DOWN FROM 351
MILLION AT THE END OF THE PREVIOUS QUARTER THE FOURTHQUARTER LOANLOSS
PROVISION WAS 70 MILLION DOWN FROM A YEAREARLIER 80 MILLION THIS WAS
THE QUARTER WHEN THE BANK REALLY PUT THE ASSETQUALITY PROBLEMS BEHIND IT
SAID HENRY DICKSON AN ANALYST WITH SMITH BARNEY SHEARSON INC

THE BANK'S TOTAL ASSETS WERE 526 BILLION AT THE END OF 1993 UP FROM A
YEAREARLIER 493 BILLION 9401180106 940118 TECHNOLOGY GTE AND AT&T
TO TEST INTERACTIVE VIDEO SERVICE

NEW YORK GTE CORP AND AMERICAN TELEPHONE & TELEGRAPH CO SAID THEY WILL
BEGIN TESTING INTERACTIVE VIDEO SERVICES IN MANASSAS VA IN LATE 1994

THE COMPANIES SAID BY MID1995 THEY WILL OFFER 1000 GTE CUSTOMERS
INTERACTIVE SERVICES SUCH AS HOME SHOPPING AND EDUCATIONAL PROGRAMMING THE
SERVICES WILL RUN ON A VIDEODIALTONE NETWORK THAT COULD PROVIDE MORE THAN
500 CHANNELS OF DIGITAL PROGRAMMING

THE SYSTEM WHICH WOULD USE GTE'S FIBEROPTIC NETWORK AND AT&T
COMPUTERVIDEO SERVERS IS STILL WAITING FOR GOVERNMENT APPROVALS THE
COMPANIES SAID

GTE STAMFORD CONN AND AT&T WHICH IS BASED HERE SAID THEY SELECTED THE
MANASSAS AREA BECAUSE OF A DECISION BY THE US DISTRICT COURT FOR THE
EASTERN DISTRICT OF VIRGINIA LAST YEAR THE COURT DECLARED THE
VIDEOPROGRAMMING SECTION OF THE 1984 CABLE ACT UNCONSTITUTIONAL PAVING THE
WAY FOR SUCH SERVICE OFFERINGS FROM PHONE COMPANIES 9401180105 940118 IN
THE LAB TO FIGHT DISEASE RESEARCHER REFORMS COLD VIRUS'S EVIL WAYS 
 BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE VIRUS THAT BRINGS ON SNEEZES ACHES AND COUGHS IS ABOUT TO
DO A LOT OF GOOD

IN A WARREN OF LABORATORIES TUCKED AWAY IN A NEW YORK HOSPITALCORNELL
MEDICAL CENTER BUILDING OVERLOOKING THE EAST RIVER A SMALL CREW OF
SCIENTISTS IS BREWING UP HUNDREDS OF MILLIONS OF COPIES OF A VIRUS THAT CAN
CAUSE THE COMMON COLD BUT UNLIKE THE WILD VIRUSES THAT CAUSE HEADACHES
FEVER STOMACH ILLS AND THE REST THESE LABORATORY VIRUES HAVE BEEN TAMED
THEIR COLDCAUSING STINGERS SNIPPED OUT

THESE CRIPPLED VIRUSES ARE ABOUT TO BE ENLISTED IN HUMANKIND'S WAR AGAINST
BRAIN CANCER INHERITED DISEASES HEART ATTACKS AND A HOST OF OTHER
LIFETHREATENING AND VEXING AILMENTS THE RESEARCHERS HAVE LEFT INTACT THE
VIRUS'S ABILITY TO DEFTLY WRIGGLE INTO CERTAIN HUMAN CELLS IT IS THIS
CELLINFECTING CHARACTERISTIC THAT SCIENTISTS HERE AND IN A HANDFUL OF OTHER
RESEARCH LABS ARE TRYING TO EXPLOIT THEY HOPE TO USE THE VIRUS TO FERRY
DISEASEFIGHTING GENES INTO REGIONS OF THE HUMAN BODY GENERALLY INACCESSIBLE
TO MODERN MEDICINES

THE COMMONCOLD VIRUS MAY TURN OUT TO BE ONE OF THE MOST EFFECTIVE NEW WAYS
OF DELIVERING MEDICINE THERE IS SAYS RONALD CRYSTAL WHO DIRECTS NEW YORK
HOSPITAL'S VIRUSTINKERING PROGRAM THE MEDICINE IN THIS CASE IS PRODUCED
BY GENES

GENES REPRESENT THE MOLECULAR BLUEPRINT USED BY CELLS TO PRODUCE PROTEINS
SUCH AS ENZYMES AND HORMONES THAT CARRY OUT THE SECONDBYSECOND CHEMICAL
FUNCTIONS OF LIFE BY TRANSPLANTING SPECIFIC GENES DIRECTLY INTO CLUSTERS OF
HUMAN CELLS SCIENTISTS HOPE TO INDUCE THE CELLS TO PRODUCE NEW THERAPEUTIC
PROTEINS THAT ARE EITHER SAFER AND MORE EFFECTIVE THAN MEDICINES PRODUCED IN
DRUG FACTORIES OR CAPABLE OF DOING A JOB THAT CANNOT BE DONE BY ANY MANMADE
MEDICINES

THIS NEW VIRUSAIDED TECHNIQUE IS BEHIND THE SUDDEN EXPLOSION OF
GENETHERAPY EXPERIMENTS AT THE MOMENT THERE ARE 68 GOVERNMENTSANCTIONED
HUMAN EXPERIMENTS INVOLVING GENE THERAPY PLANNED OR UNDER WAY UP FROM 26
LAST YEAR

A PRINCIPAL REASON FOR THIS IS A FLURRY OF NEW FINDINGS MADE BY DR CRYSTAL
AND OTHERS ABOUT THE COMMONCOLD VIRUS KNOWN FORMALLY AS THE ADENOVIRUS
DR CRYSTAL WHO SPENT 20 YEARS AT THE NATIONAL INSTITUTES OF HEALTH COOKING
UP NEW THERAPIES AGAINST POORLY TREATED RESPIRATORY ILLNESSES BEFORE HE
MOVED TO NEW YORK LAST YEAR APPRECIATES THE IRONY OF HARNESSING ONE OF HIS
LONGTIME ARCHENEMIES

IT'S NOT SURPRISING THAT I WAS ATTRACTED TO THE ADENOVIRUS SAYS DR
CRYSTAL LIKE EVERYONE RESEARCHING PULMONARY DISEASE I'VE STUDIED IT
EXTENSIVELY MUCH WAS KNOWN ABOUT THE VIRUS AND HOW IT GETS INSIDE CELLS
WHAT'S BEEN A TRUE SURPRISE IS WHAT AN EXTRAORDINARILY VERSATILE THERAPEUTIC
AGENT IT'S TURNING OUT TO BE

THE DEACTIVATED VIRUS ALSO MAY BE SAFER TO USE IN TRANSPLANTING GENES THAN
ANOTHER VIRUS SCIENTISTS HAVE USED IN EARLY EXPERIMENTS UNLIKE THE OTHER
VIRUS THE ADENOVIRUS DOESN'T THRUST ITS GENES INTO THE CELL'S OWN SENSITIVE
DNA OR GENETIC MATERIAL INSTEAD THE VIRUS DEPOSITS THE GENE ALONGSIDE THE
DNA WHERE IT CHURNS OUT ITS DESIGNATED PROTEINS WITHOUT CHANGING THE CELL'S
OWN GENETICS

SCIENTISTS WORKING WITH THE COLD BUG ALSO LIKE IT BECAUSE INFECTED CELLS
GENERALLY SPIT OUT THE VIRUS WITHIN WEEKS MEANING THE VIRUS AND ITS
TRANSPLANTED GENE HAVE ONLY A TEMPORARY EFFECT

LAST YEAR DR CRYSTAL HELPED MAKE SCIENTIFIC HISTORY WHEN HIS NIH LAB USED
THE ADENOVIRUS FOR THE FIRST HUMAN GENE THERAPY FOR CYSTIC FIBROSIS CYSTIC
FIBROSIS IS AN INHERITED DISEASE INVOLVING A DEFECTIVE GENE IN CELLS THAT
LINE THE LUNG'S TINY AIR PASSAGES BECAUSE OF THE GENETIC DEFECT THE LUNGS
ARE UNABLE TO MAKE A PROTEIN THAT KEEPS THE AIRWAYS CLEAR OF MUCUS AS A
RESULT THE LUNGS OF CYSTICFIBROSIS PATIENTS BECOME CLOGGED WITH A THICK
MUCUSLIKE SUBSTANCE THAT RENDERS THE PATIENTS HIGHLY SUSCEPTIBLE TO
DANGEROUS BACTERIAL INFECTIONS

BACK IN 1989 ABOUT THE TIME SCIENTISTS DISCOVERED THE CYSTICFIBROSIS GENE
DR CRYSTAL GOT THE IDEA OF USING THE COMMONCOLD VIRUS TO REPAIR THE LUNG
CELLS' GENETIC FLAW I WAS JOGGING ONE DAY AND IT HIT ME SAYS DR
CRYSTAL THE ADENOVIRUS TARGETS THE VERY SAME CELLS AS ARE DAMAGED IN
CYSTIC FIBROSIS IT SEEMED LIKE A NATURAL WAY TO DELIVER THE MISSING GENE

IN A SERIES OF TESTTUBE AND ANIMAL EXPERIMENTS OVER THE NEXT FEW YEARS DR
CRYSTAL AND HIS COLLEAGUES FOUND THEY COULD SUCCESSFULLY HITCH A VARIETY OF
HUMAN GENES TO THE ADENOVIRUS IN ANIMAL TESTS ALTERED VIRUS INJECTED INTO
THE LUNGS VIA A LONG CATHETER HOMED IN ON THE AIRWAY CELLS AND TRIGGERED THE
CELLS TO MANUFACTURE THE MISSING AIRWAYCLEARING PROTEIN

IN THE HUMAN TESTS CONDUCTED IN RECENT MONTHS THE RESEARCHERS FOUND
EVIDENCE THAT THE VIRUS INSERTED THE GENE IN ABOUT 5 OF TARGETED LUNG
CELLS ONLY ONE OF THE FOUR TREATED PATIENTS DEVELOPED A DISTURBING FLULIKE
ILLNESS BUT DR CRYSTAL BELIEVES THAT WAS CAUSED BY USING HIGHER DOSES OF
THE VIRUS THAN WAS NECESSARY NEW TESTS PLANNED ON ABOUT A DOZEN MORE
PATIENTS WILL DETERMINE IF THE IMPLANTED GENE PRODUCES ENOUGH PROTEIN TO
KEEP THE LUNGS CLEAR

OF EQUAL IMPORTANCE DR CRYSTAL SAYS RESEARCHERS WERE SURPRISED TO FIND IN
THEIR EXPERIMENTS THAT THE ADENOVIRUS WAS ABLE TO TARGET CELLS THAT LINE
NUMEROUS OTHER ORGANS SUCH AS THE BRAIN THE LIVER AND THE HEART
SUDDENLY WE REALIZED WE HAD THIS PHENOMENAL DELIVERY TOOL SAYS DR
CRYSTAL TO GENERATE THE FUNDS NEEDED TO EXPLOIT THE VIRUS DR CRYSTAL
HELPED FORM A NEW CLOSELY HELD COMPANY CALLED GENVEC INC WHICH IS BASED
IN BETHESDA MD NEAR THE NIH AND IS PARTLY OWNED BY GENENTECH INC OF
SOUTH SAN FRANCISCO CALIF

IN ONE SET OF ANIMAL EXPERIMENTS CONDUCTED AT THE NIH AND NEW YORK LABS DR
CRYSTAL'S TEAM FOUND THE VIRUS CAN INFECT CELLS THAT LINE CORONARY ARTERIES
THE SCIENTISTS HOPE THIS DISCOVERY WILL LEAD TO A WAY TO COUNTER A PROBLEM
THAT OFTEN DEVELOPS AFTER A PROCEDURE CALLED ANGIOPLASTY IN WHICH DOCTORS
INFLATE A TINY BALLOON AT THE TIP OF A CATHETER TO PRY OPEN CORONARY
ARTERIES THAT HAVE BEEN BLOCKED BY THE FATTY DEPOSITS OF HEART DISEASE

THE PROBLEM IS THAT ANGIOPLASTY CAN WOUND THE ARTERY'S SMOOTH INNER LINING
TRIGGERING THE RAPID GROWTH OF SCAR TISSUE THAT IN TURN CAN RECLOG THE
ARTERY DR CRYSTAL'S LAB IS NOW TESTING SEVERAL GENES THAT MIGHT BE
INSERTED INTO THE INNER WALL OF AN ARTERY WHERE THEY WILL TEMPORARILY
PRODUCE PROTEINS TO PREVENT OR SLOW THE SCARRING

IN ANOTHER TEST THE SCIENTISTS BELIEVE THEY CAN IMPROVE THE BENEFITS OF
HEARTBYPASS SURGERY BY INJECTING GENES THAT PROMOTE THE RAPID GROWTH OF NEW
BLOOD VESSELS AROUND DAMAGED ARTERIES THESE NEW VESSELS WOULD CARRY
OXYGENNOURISHING BLOOD TO PARTS OF THE HEART MUSCLE THAT ARE BEYOND THE
HELP OF BYPASS SURGERY

AND IN STILL ANOTHER SET OF EXPERIMENTS SCIENTISTS HAVE FOUND THAT THE
ADENOVIRUS CAN CARRY CANCERFIGHTING PROTEINS TO THE SITE OF A TUMOR IN
EXPLOITING BASIC RESEARCH BY SCIENTISTS AT HARVARD SCHOOL OF MEDICINE AND
THE UNIVERSITY OF CHICAGO GENVEC IS DEVELOPING AN ADENOVIRUS CARRYING A
GENE THAT WILL TURN ON WHEN HIT BY A TINY BURST OF RADITION THE TURNEDON
GENE PRODUCES A PROTEIN THAT KILLS CANCER CELLS SUCH A TRICK COULD LIMIT
EFFECTS CAUSED BY THE PROTEIN AND ALSO REDUCE THE AMOUNT OF RADIATION USED
TO DESTROY A TUMOR AND THEREBY LIMIT DAMAGE TO HEALTHY TISSUE

THE BEST SITE FOR THIS TREATMENT IS BRAIN CANCER FOR WHICH CURRENT
TREATMENTS ARE LIMITED DR CRYSTAL SAYS IF IT WORKS WE HOPE TO TARGET
OTHER CANCERS TOO 9401180104 940118 MINORITIES WITH PHDS ROSE 27
OVER DECADE

WASHINGTON WITH THE EXCEPTION OF BLACKS THE NUMBER OF MINORITIES WHO
RECEIVED DOCTORATES INCREASED SUBSTANTIALLY BETWEEN 1982 AND 1992 ACCORDING
TO THE AMERICAN COUNCIL ON EDUCATION

OVERALL 27 MORE MINORITIES EARNED PHDS IN 1992 THAN 10 YEARS EARLIER
WHILE THE OVERALL NUMBER OF DOCTORATES CLIMBED ABOUT 6 THE GROUP SAID
MINORITIES ACCOUNTED FOR 2682 OF THE 25759 DOCTORATES AWARDED IN 1992
ASIANS HAD AN 83 GAIN RECEIVING 828 DOCTORATES IN 1992 UP FROM 452 IN
1982 WHILE HISPANICS HAD A 41 GAIN TO 755 FROM 535 NATIVE AMERICANS
NEARLY DOUBLED THEIR NUMBERS TO 148 FROM 77 A DECADE EARLIER

BUT BLACKS SAW A 92 DECLINE FINISHING 1992 WITH 951 DEGREES EARNED
COMPARED WITH 1047 IN 1982 THE DROP WAS DUE TO A SHARP FALL IN DEGREES
AWARDED TO BLACK MALES WHO HAD A 20 DECLINE BLACK FEMALES SHOWED MINIMAL
GAINS

PHDS IN EDUCATION CONTINUED TO BE THE MOST POPULAR DOCTORATES AMONG
MINORITIES ACCOUNTING FOR 29 OF MINORITY DOCTORATES THE REPORT SAID

MEANWHILE THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE HAS CONCLUDED THAT
FEWER THAN 5 OF ALL UNDERGRADUATE AND GRADUATE SCHOLARSHIPS WERE TARGETED
TO MINORITIES IN THE 199192 SCHOOL YEAR 9401180103 940118 WHO'S NEWS 
TWO DARKHORSE CANDIDATES SURFACE FOR COOPERS & LYBRAND CHAIRMANSHIP 
 BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK TWO DARKHORSE CANDIDATES HAVE SURFACED AS POSSIBLE SUCCESSORS
TO EUGENE M FREEDMAN WHO WILL RETIRE THIS FALL AS CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF COOPERS & LYBRAND

THE TWO NEW NAMES BEING MENTIONED AT THE FIFTH BIGGEST US ACCOUNTING FIRM
ARE NICHOLAS G MOORE THE 51YEAROLD VICE CHAIRMANCLIENT SERVICE BASED
IN SAN JOSE CALIF AND SAMUEL DI PIAZZA THE 43YEAROLD CLUSTER OR
REGIONAL MANAGING PARTNER IN CHICAGO

THREE VICE CHAIRMEN WILLIAM O'BRIEN JOHN ROBERTS AND STEPHEN MCKESSY HAVE
BEEN MENTIONED AS STRONG CANDIDATES VINCENT O'REILLY CHIEF OPERATING
OFFICER MIGHT ALSO RUN SOME PARTNERS THINK

MR MOORE AND MR DI PIAZZA ARE BOTH LOWERKEYED THAN THE 61YEAROLD MR
FREEDMAN WHO IS CONSIDERED STRONGWILLED AND THRIVES IN A TURBULENT
ATMOSPHERE ACCORDING TO SEVERAL COOPERS PARTNERS

MR FREEDMAN WANTED TO KEEP THE JOB HIMSELF SO HE DID NOT AS IS CUSTOMARY
AT MAJOR ACCOUNTING FIRMS SELECT A SUCCESSOR MR FREEDMAN FAILED TO
RECEIVE STRONG ENOUGH SUPPORT FOR A REELECTION EFFORT FROM THE FIRM'S
PARTNERS

THEREFORE THE RACE FOR CHAIRMAN IS WIDE OPEN AND CANDIDATES WITH
DIFFERENT STYLES THAN GENE FREEDMAN AND WHO HAVEN'T RUN BEFORE LIKE NICK
MOORE AND SAM DI PIAZZA HAVE A GOOD CHANCE FOR THE JOB ACCORDING TO A
MEMBER OF COOPERS' RULING COUNCIL WHO DECLINES TO BE IDENTIFIED

AN ELECTION WILL BE HELD IN MAY AND THIS TIME THE PARTNERS MAY BE ASKED TO
CHOOSE FROM THREE OR FOUR CANDIDATES RATHER THAN ONLY ONE MR MOORE SAID
BIG SIX FIRMS GENERALLY SELECT ONLY ONE CANDIDATE FOR VOTING BY PARTNERS
WE'RE CONSIDERING PUTTING MORE TEETH INTO DEMOCRACY AT THE FIRM AND HAVING
THE PARTNERS INSTEAD OF THE GOVERNING COUNCIL SELECT THE NEXT CHAIRMAN MR
MOORE ADDED

OTHER COOPERS PARTNERS SAY MR MOORE IS QUIET AND POPULAR PARTNERS SAY HE
MADE A BIG CONTRIBUTION TO COOPERS & LYBRAND'S HIGHTECH BUSINESS WHICH HE
HEADED UNTIL LATE 1991 MR MOORE SAID HE PLANS TO RUN FOR CHAIRMAN

COOPERS PARTNERS SAID MR DIPIAZZA ALSO HAS A RELAXED STYLE AND IS
WELLLIKED AT THE FIRM MR DIPIAZZA WAS IN NEW YORK VISITING CLIENTS AND
COULDN'T BE REACHED FOR COMMENT ON WHETHER HE PLANS TO RUN FOR CHAIRMAN

MR MOORE SAID THAT IF HE WERE ELECTED CHAIRMAN HE WOULD CONTINUE TO TRY TO
INCREASE THE FIRM'S MARKET SHARE WITH CLIENTS IN INSURANCE
TELECOMMUNICATIONS HIGH TECHNOLOGY HEALTH CARE AND MANUFACTURING WE ALSO
HAVE TO BOOST OUR BUSINESS SHARE IN THE MIDWEST WHERE WE HAVEN'T YET PUT
MONEY AND TEETH INTO NEW MARKETING PROGRAMS HE ADDED

GAINING BUSINESS WOULD ADDRESS A KEY WORRY OF THE FIRM'S PARTNERS COOPERS
ASKED ABOUT 12 OF ITS PARTNERS OR 160 TO LEAVE OR TAKE EARLY RETIREMENT
LAST YEAR IN THE FACE OF SLOWER GROWTH THAN IN THE EARLY 1980S BUT OTHER
FIRMS HAVE MADE DEEPER CUTS IN PARTNERS

MR MOORE SAID THAT IF HE WERE ELECTED CHAIRMAN HE WOULDN'T CONTINUE
STREAMLINING BUT WOULDN'T BE CARETAKER EITHER HE ADDED WE'RE ABOUT
30 THERE IN THE NEW STATEGY TO BOOST BUSINESS BY FOCUSING ON INDUSTRY
GROUPS SO THERE'S A LOT MORE WORK THAT HAS TO BE DONE

MR FREEDMAN HAD SOUGHT A CHANGE IN THE FIRM'S BYLAWS ALLOWING HIM TO RUN
FOR ANOTHER THREEYEAR TERM AS CHAIRMAN HE WILL SOON REACH THE FIRM'S
MANDATORY RETIREMENT AGE OF 62 BUT WHEN HIS POLL OF 1200 PARTNERS SHOWED
THAT HE HADN'T GATHERED ENOUGH SUPPORT HE CHOOSE RETIREMENT NEXT SEPT 30

NUMEROUS PARTNERS HAVE PRAISED MR FREEDMAN FOR TRYING TO GIVE COOPERS MORE
BUSINESS FOCUS BY REORGANIZING THE FIRM ALONG THE LINES OF INDUSTRIES
SERVED BUT SOME FEEL HE OFTEN TREATED SUBORDINATES HARSHLY GENE SOMETIMES
COMES ON STRONG BUT REALLY HAS THE FIRM'S BEST INTERESTS AT HEART SAYS
HAROLD DANKNER A COOPERS PARTNER

MR FREEDMAN'S SECRETARY SAID HE WAS IN A MEETING AND COULDN'T BE REACHED
FOR COMMENT MESSRS O'BRIEN ROBERTS MCKESSY AND O'REILLY WEREN'T
AVAILABLE FOR COMMENT 9401180102 940118 MONDAY'S MARKETS DOW
INDUSTRIALS ADVANCE 309 TO A RECORD  BY STEVEN E LEVINGSTON 
STAFF REPORTER OF THE WALL STREET JOURNAL

THE DOW JONES INDUSTRIAL AVERAGE EKED OUT A RECORD IN LATE TRADING THE
DOLLAR ROSE AGAINST THE MARK AND WAS UNCHANGED AGAINST THE YEN IN THIN
HOLIDAY TRADING

SOME INSURANCE COMPANY STOCKS FELL ON CONCERNS THAT CLAIMS STEMMING FROM THE
LOS ANGELES EARTHQUAKE WOULD CUT INTO PROFITS BUT AT THE SAME TIME SOME
CONSTRUCTION COMPANIES GAINED ON THE EXPECTED WINDFALL FROM REBUILDING

STOCKMARKET TRADING WAS SUBDUED BECAUSE OF THE HOLIDAY IN HONOR OF MARTIN
LUTHER KING JR THE BOND MARKET WAS CLOSED

WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX LOST 021 TO 11303

IN MAJOR MARKET ACTION

STOCK PRICES WERE MIXED VOLUME TOTALED 2264 MILLION SHARES ON THE NEW YORK
STOCK EXCHANGE WHERE 1071 ISSUES FELL AND 994 ROSE

THE DOLLAR ROSE AGAINST THE MARK IN LATE NEW YORK TRADING THE CURRENCY WAS
AT 17553 MARKS AND 11106 YEN COMPARED WITH 17495 MARKS AND 11106 YEN
FRIDAY 9401180101 940118 LEISURE & ARTS ON SPORTS JOE AND THE KC
D' MOP UP THE OILERS  BY FREDERICK C KLEIN

HOUSTON WHO SAYS LIFE DOESN'T IMITATE ART THEY HAD A SEQUEL TO JOE
VERSUS THE VOLCANO HERE SUNDAY AFTERNOON AND AGAIN JOE WON

THIS JOE WAS QUARTERBACK JOE MONTANA NOW OF THE KANSAS CITY CHIEFS HE'S
THE MOST FAMOUS FOOTBALLING JOE WHOSE MIDDLE NAME ISN'T WILLIE HE'S 37
YEARS OLD NEARANCIENT FOR A JOCK BUT IF HIS BODY ISN'T QUITE WHAT IT WAS
WHILE HE WAS LEADING THE SAN FRANCISCO 49ERS TO A SPATE OF NATIONAL FOOTBALL
LEAGUE CHAMPIONSHIPS IN THE PAST FASTRETREATING DECADE HIS MIND HAS NOT
LOST ITS CUNNING

THE MAIN LESSON OF JOE'S SEASONS PAST 14 OF THEM IS THAT ONE NEEDN'T
SUCCEED ALL THE TIME TO WIN JUST ONCE MORE THAN THE OTHER TEAM WE HAD A
LOT OF MISSED OPPORTUNITIES IN THE FIRST HALF WHILE THE HOMETEAM HOUSTON
OILERS WERE TAKING A 100 LEAD BUT WE WERE JUST A LITTLE OFF AND WE KNEW
THAT IF WE KEPT AT IT WE'D CONNECT HE SAID AFTER HIS TEAM'S 2820 UPSET
PLAYOFF VICTORY PUT IT INTO SUNDAY'S AMERICAN CONFERENCE TITLE GAME AGAINST
THE BUFFALO BILLS HE ADDED THE OILERS BLITZED A LOT YOU KNOW AND THAT
LEFT A WHOLE FIELD TO PASS INTO

THE AUTHOR OF THOSE BLITZES WAS STUMPY CLAUDE BUDDY RYAN THE OILERS'
DEFENSIVE COORDINATOR HE PLAYED THE VOLCANO ON SUNDAY IT'S A ROLE HE'S
USED TO THANKS IN PART TO THE QUARTERBACKSEEKING ERUPTIONS HIS CHARGES
LAUNCH AND IN PART TO HIS OWN PROPENSITY FOR BLOWING HIS TOP HE DID THE
LATTER DURING A REGULARSEASON GAME A COUPLE OF WEEKS BACK THROWING A PUNCH
AT KEVIN GILBRIDE HIS OWN TEAM'S OFFENSIVE COORDINATOR WHEN GILBRIDE'S
PLAY SELECTION DISPLEASED HIM

BEFORE THAT RYAN HAD PUNCTUATED AN UH INTERESTING COACHING CAREER BY
TAKING VERBAL SHOTS AT HEAD COACHES HE'D WORKED FOR VARIOUS OTHER
COLLEAGUES AND THE OWNER OF THE TEAM FOR WHICH HE WAS HEAD COACH THAT'S
WHY HE'S AN ASSISTANT TODAY DESPITE A PROFESSIONAL LIFETIME OF STATEMENTS
THAT ADD UP TO THE SELFDRAWN CONCLUSION THAT HE'S THE ONLY MAN IN AMERICA
WHO REALLY KNOWS HOW TO COACH FOOTBALL

RYAN MAY BE RIGHT ABOUT THAT BUT ON SUNDAY HE MANFULLY ADMITTED THAT SOME
FELLAS BESIDES THE ONES HE OVERSEES KNOW HOW TO PLAY I THOUGHT WE PLAYED
WELL ENOUGH BUT A GUY NAMED MONTANA PLAYED PRETTY WELL TOO SAID HE HE
KEPT GETTING UP LIKE HE ALWAYS DOES

THE GUYS ON THE KC DEFENSE DID ALL RIGHT TOO BETTER IN FACT THAN
BUDDY'S BOYS THEY HELD THE OILERS TO 277 NET YARDS 77 FEWER THAN THE
CHIEFS PRODUCED AND CAUSED HOUSTON QUARTERBACK WARREN MOON TO ARISE AFTER
SACKS NINE TIMES JOE HAD TO DO THAT ONLY TWICE

AND HEY BUDDY ALSO COULD CLAIM SOME CREDIT FOR THE CHIEFS' DEFENSIVE
ACHIEVEMENTS WHEN ALL YOU HEAR FOR A WEEK IS BUDDY BUDDY BUDDY AND HOW
GREAT HIS GUYS ARE IT MAKES YOU ASK HOW ABOUT US' SAID JOE PHILLIPS
THE LARGE KC DEFENSIVE TACKLE I'D SAY THAT HELPED MOTIVATE US

INDEED WHILE MONTANA WHO WAS LURED TO THE CHIEFS THIS SEASON FOR A
REPORTED YEARLY WAGE OF 4 MILLION HAD A FINE DAY COMPLETING 22 OF 38
PASSES FOR 299 YARDS MOST AGREED THAT A DEFENSIVE SERIES TURNED THE TIDE
FOR THE WINNERS IT CAME EARLY IN THE FOURTH QUARTER WHEN WITH HIS TEAM
TRAILING 107 JOE TRIED TO LOB A PASS TO TIGHT END JONATHAN HAYES BUT IT
WAS INTERCEPTED BY TERRY HOAGE AT THE CHIEFS' 25YARD LINE

A TOUCHDOWN THERE WOULD HAVE MADE THE HOUSTON MARGIN FORMIDABLE BUT ON
THIRDDOWNANDONE AT THE 16 SAFETY BENNIE THOMPSON SACKED MOON FOR A
10YARD LOSS AND THE RESULTING OILER SCORE ON AN AL DEL GRECO FIELD GOAL
KEPT THE LEAD WITHIN THE CHIEFS' REACH

JOE QUICKLY GRABBED IT MOVING HIS TEAM 71 YARDS IN THREE PLAYS THE NEXT
TIME IT HAD THE BALL THE TOUCHDOWN CAME ON AN 11YARD PASS TO JJ BIRDEN
AND WHEN CHIEFS PASS RUSHER DERRICK THOMAS SAILED IN TO DUMP POOR MOON ON
THE FIRST PLAY OF THE OILERS' NEXT POSSESSION CAUSING A FUMBLE THAT
TEAMMATE DAN SALEAUMUA RECOVERED MONTANA RESPONDED WITH WHAT PROVED TO BE
THE WINNING POINTS ON AN 18YARD TOUCHDOWN PASS TO A LEAPING WILLIE DAVIS

MOON PULLED HIS TEAM TO WITHIN A POINT 2120 WITH AN 80YARD 10PLAY
ALLPASS DRIVE THAT ENDED WITH 335 LEFT IN THE BUSY FOURTH QUARTER BUT
MONTANA KEPT THE BALL FROM HOUSTON BY CONVERTING A THIRDDOWNANDONE
SITUATION WITH A PASS TO KEITH CASH AND THE VETERAN MARCUS ALLEN SET THE
FINAL SCORE WITH A 21YARD TD RUN

ALL NFL POSTSEASON GAMES ARE FRAUGHT WITH IMPLICATIONS BUT THIS ONE WAS
FRAUGHTER THE OILERS HAVE MADE THE PLAYOFFS FOR SEVEN STRAIGHT YEARS NOW A
CURRENT LEAGUE HIGH BUT HAVEN'T REACHED A CONFERENCE CHAMPIONSHIP GAME IN
THAT STRETCH AND REMAIN ONE OF NINE TEAMS THAT HAVE NEVER APPEARED IN A
SUPER BOWL AFTER BLOWING A 353 LEAD TO LOSE TO BUFFALO 4138 IN A
MEMORABLE QUARTERFINAL MATCH LAST YEAR HOUSTON BROUGHT IN RYAN TO RUN ITS
DEFENSE AFTER THIS ONE RYAN MIGHT BE GONE ALONG WITH SPARRING PARTNER
GILBRIDE AND HEAD COACH JACK PARDEE WHO'S SPENT MUCH OF THE YEAR AS A FIGHT
REF THE HOUSTON SUN MAY ALSO HAVE SET ON QB MOON WHO IS 37 LIKE JOE BUT
WITHOUT THE SUPER BOWL RINGS

THE CHIEFS HAVE ONE SB CROWN TO THEIR CREDIT IN 1970 BUT HAVEN'T BEEN
IN AN AFC TITLE CONTEST SINCE THEIR COACH MARTY SCHOTTENHEIMER TWICE LED
CLEVELAND BROWNS TEAMS TO THAT ROUND BUT LOST BOTH TIMES ALL THIS GIVES
US IS A CHANCE TO PLAY AGAIN TOMORROW HE REMINDED GRIMLY AFTER SUNDAY'S
FRAY

ACTUALLY IT WOULD BE SEVEN DAYS BEFORE THEY PLAY AGAIN AT PROBABLY FRIGID
BUFFALO THEY'LL BE UNDERDOGS THERE DESPITE THE PRAYERS OF THE MANY WHO
DON'T WANT TO SEE THE BILLS LOSERS IN THE THREE SBS PAST QUALIFY FOR NO
4

WHOEVER WINS THAT ONE WILL PLAY THE WINNER OF THE NATIONAL CONFERENCE FINAL
BETWEEN THE DEFENDINGCHAMP DALLAS COWBOYS AND THE 49ERS WHOEVER WINS THAT
ONE WILL BE FAVORED OVER WHOEVER WINS THE OTHER BUT IT'S POSSIBLE JUST
POSSIBLE THAT ON JAN 30 IN ATLANTA WE'LL GET JOE VERSUS HIS OLD NINER
CLUB IT'D BE TOUGH TO CONCOCT A SEQUEL TO THAT 9401180100 940118 HEALTH
 IN HEALTH CARE LOW COST BEATS HIGH QUALITY  BY RON WINSLOW 
STAFF REPORTER OF THE WALL STREET JOURNAL

A NEW SURVEY SHOWS THAT CORPORATE BUYERS OF HEALTHCARE PLANS ARE MORE
CONCERNED WITH LOW PRICES THAN HIGH QUALITY

CONVERSATIONS LIKE THIS ONE CORROBORATE THE FINDINGS OF A RECENT SURVEY BY
FOSTER HIGGINS AN EMPLOYEEBENEFITS CONSULTANT THE SURVEY OF 102
MANAGEDCARE ORGANIZATIONS AND 127 HOSPITALS AND PHYSICIAN PRACTICES AROUND
THE COUNTRY FOUND THAT BY A LARGE MEASURE SUBJECTS RATED PRICE OVER
QUALITY AS THE MAJOR FACTOR FOR SUCCESS IN THEIR MARKETS OVER THE NEXT THREE
TO FIVE YEARS

IN EVERY BUSINESS PRICE IS KING BUT ONE WOULD HAVE EXPECTED TO SEE
QUALITY OR OUTCOMES RATED HIGHER SAID GLENN MEISTER A PRINCIPAL AT
FOSTER HIGGINS

INDEED 69 OF THE MANAGEDCARE GROUPS THAT PARTICIPATED IN THE SURVEY
LISTED PRICE AS EITHER FIRST OR SECOND AMONG SEVEN INGREDIENTS FOR SUCCESS
WHILE ONLY 9 RATED PUBLISHED DATA ON OUTCOMES OF CARE A QUALITY MEASURE
AS THAT IMPORTANT MOST MANAGEDCARE RESPONDENTS RANKED OUTCOMES LAST 
SUGGESTING THAT QUALITY DOESN'T YET PLAY A SIGNIFICANT ROLE IN PURCHASING
DECISIONS

ONE RESULT THE SURVEY SUGGESTS IS THAT ONLY A FEW HEALTH PLANS AND
PROVIDER GROUPS ARE AGGRESSIVELY TRYING TO MEASURE THE QUALITY OF THE CARE
THEY OFFER ONLY 24 OF ALL SURVEY PARTICIPANTS CONSIDERED THEMSELVES VERY
ACTIVE OR EXTREMELY ACTIVE IN RESEARCH PROJECTS THAT STUDY THE IMPACT OF
THEIR CARE ON THE WELLBEING OF THEIR MEMBERS 32 SAID THEY WEREN'T
PARTICIPATING IN SUCH ACTIVITIES

PARTICIPANTS IN THE FOSTER HIGGINS SURVEY CONDUCTED AMONG MEDICAL DIRECTORS
OF THE HEALTHCARE ORGANIZATIONS LAST SUMMER RATED PATIENT SATISFACTION AS
THE SECOND MOST IMPORTANT FACTOR IN MARKETPLACE SUCCESS EMPLOYERS
INCREASINGLY CONSIDER PATIENT SATISFACTION AN IMPORTANT MEASURE OF QUALITY
BUT MR MEISTER MAINTAINED THAT FEW HEALTH PLANS COMPILE SCIENTIFICALLY
VALID DATA ON PATIENT SATISFACTION THAT RELATE DIRECTLY TO QUALITY OF CARE

WHILE 77 OF RESPONDENTS SAID THEY BELIEVE THAT ACCURATE RESEARCH ON THE
OUTCOMES OF TREATMENT AT VARIOUS PLANS WILL IMPROVE QUALITY JUST 30 OF
MANAGEDCARE PLANS AND 46 OF HOSPITALS AND PHYSICIAN PRACTICES SAID IT WILL
SAVE MONEY THAT CONTRASTS WITH THE VIEWS OF MANY QUALITYIMPROVEMENT
ADVOCATES WHO SAY SUCH RESEARCH CAN LEAD BOTH TO BETTER QUALITY AND LOWER
COSTS

SHEILA LEATHERMAN PRESIDENT OF THE CENTER FOR HEALTH CARE POLICY AND
EVALUATION A UNIT OF UNITED HEALTHCARE CORP MINNEAPOLIS SAID THAT WHILE
QUALITY ISSUES SCORED LOW IN THE SURVEY THEY ARE MOVING UP VERY QUICKLY
AS A PUBLIC CONCERN IN THE NATIONAL HEALTHCARE REFORM DEBATE

MEANWHILE STIFF COMPETITION IN SOME MARKETS IS ALREADY BEGINNING TO NARROW
PRICE DIFFERENCES AMONG PROVIDERS OF CARE SAID GROUP HEALTH'S MR BRUMLEVE
A DEVELOPMENT THAT WILL MAKE QUALITY A TOP PRIORITY HOW ARE PLANS GOING TO
DIFFERENTIATE THEMSELVES IN THE MARKET HE ASKED IT'S NOT GOING TO BE ON
PRICE IT'S GOING TO BE ON SERVICE ACCESS TO DOCTORS AND ON OUTCOMES THE
ACTUAL QUALITY OF CARE BEING DELIVERED

HOW 102 MANAGEDCARE ORGANIZATIONS RANKED FACTORS IMPORTANT TO SUCCESS IN
THE MARKETPLACE PERCENTAGE OF PLANS RANKING A FACTOR FIRST OR SECOND
9401180099 940118 ELI LILLY PLANS SALE OR SPINOFF OF DEVICE UNITS 
 MOVE TO SHED SUBSIDIARIES INDICATES FRESH COURSE UNDER NEW
CHAIRMAN  BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET
JOURNAL

ELI LILLY & CO HAS DECIDED TO SELL OR SPIN OFF ITS ENTIRE MEDICALDEVICE
BUSINESS NINE COMPANIES WITH TOTAL ANNUAL SALES OF ABOUT 12 BILLION
ACCORDING TO PEOPLE FAMILIAR WITH THE MOVE

THE INDIANAPOLISBASED DRUG CONCERN IS EXPECTED TO ANNOUNCE THE DECISION AS
EARLY AS TODAY THE PLAN ENDORSED BY THE LILLY BOARD YESTERDAY IS A FIRST
INDICATION OF A CHANGED COURSE FOR LILLY UNDER NEW CHAIRMAN RANDALL L
TOBIAS

LILLY'S RESOLVE TO SELL OR SPIN OFF ALL THE DEVICE COMPANIES WILL SHARPLY
ALTER THE LANDSCAPE IN SEVERAL MEDICAL FIELDS SINCE THE COMPANY IS THE
MARKETSHARE LEADER OR A STRONG NO 2 IN SEVERAL AREAS OF MEDICALEQUIPMENT
SALES

THE COMPANY FOR MONTHS HAS BEEN CONSIDERING WHETHER TO SELL SOME OR ALL OF
THE SUBSIDIARIES DEPENDING ON THE OFFERS IT RECEIVES LILLY WILL EITHER
SELL THE MEDICALDEVICE DIVISION IN WHOLE OR IN PART TO OTHER COMPANIES
SPIN OFF A PORTION OR EVEN ARRANGE AN INITIAL PUBLIC OFFERING OF SHARES
REPRESENTING PART OF THE DIVISION ACCORDING TO A LILLY OFFICIAL FAMILIAR
WITH THE DECISION

THE MOVE IS EXPECTED TO WIN APPROVAL ON WALL STREET BECAUSE OF THE UNEVEN
PERFORMANCE OF THE COMPANIES AND A PERCEPTION THAT LILLY SHOULD FOCUS ON ITS
CORE PHARMACEUTICAL BUSINESS AND BOOST THE NUMBER OF NEW PRODUCTS IN ITS
PIPELINE THE COMPANY WOULD USE THE PROCEEDS TO INVEST IN PHARMACEUTICAL
RESEARCH AND DEVELOPMENT ACCORDING TO THE LILLY OFFICIALS FAMILIAR WITH THE
MOVE

MOST ANALYSTS BELIEVE THE DIVESTITURE OF THE DEVICE DIVISION WOULD BE A
PLUS FOR THE COMPANY SAID PAINEWEBBER ANALYST RONALD NORDMANN OUR
ESTIMATE IS THAT IN THE AGGREGATE THEY COULD BE WORTH MORE THAN 2 BILLION
HE SAID SUCH A MOVE COULD RELIEVE SOME OF THE FINANCIAL PRESSURE ON LILLY
WHICH HAS SEEN LAGGING EARNINGS IN SOME RECENT QUARTERS AFTER YEARS OF
NONSTOP SUCCESSES

CHIEF AMONG THE COMPANIES IN THE DIVISION IS THE CARDIAC PACEMAKERS INC
UNIT IN ST PAUL MINN WHICH BESIDES SELLING PACEMAKERS HAS BEEN A WORLD
LEADER IN DEVELOPING SURGICALLY IMPLANTED CARDIAC DEFIBRILLATORS THESE
MACHINES ADMINISTER ELECTRICAL IMPULSES TO SLOW DOWN RACING HEARTBEATS
WHICH ARE POTENTIALLY FATAL THE UNIT WITH 350 MILLION IN ESTIMATED ANNUAL
SALES MADE THE FIRST SUCH IMPLANTABLE MACHINE TO BE SOLD IN THE US
MARKET IT ALSO IS ONE OF THREE LEADING COMPANIES EXPECTED TO PROFIT
HANDSOMELY IN A BURGEONING DEFIBRILLATOR MARKET THAT COULD REACH 1 BILLION
OR MORE IN ANNUAL SALES IN THE NEXT FEW YEARS

ANOTHER HIGHLY SUCCESSFUL COMPANY INCLUDED IN LILLY'S MOVE IS THE ADVANCED
CARDIOVASCULAR SYSTEMS INC UNIT BASED IN SANTA CLARA CALIF THIS CONCERN
CHIEFLY MAKES BALLOON ANGIOPLASTY CATHETERS IT IS STILL THE LEADING COMPANY
IN THIS FIELD WORLDWIDE ALTHOUGH IT HAS BEEN OVERTAKEN IN RECENT MONTHS IN
THE US BY SCIMED LIFE SYSTEMS INC ANGIOPLASTY CATHETERS ARE AN ASSEMBLAGE
OF WIRES WITH A TINY BALLOON AT THE END USED TO COMPRESS MATERIAL BLOCKING
CORONARY ARTERIES THE UNIT HAS ESTIMATED ANNUAL SALES OF 250 MILLION

SOME OF THE OTHER LILLY DEVICE COMPANIES HAVE HAD RELATIVELY POOR RESULTS
RECENTLY FOR INSTANCE LILLY'S SAN DIEGOBASED HYBRITECH INC UNIT WHICH
MAKES BLOOD TESTS FOR PROSTATE CANCER AND OTHER PRODUCTS HAS LOST MARKET
SHARE IN RECENT YEARS TO ABBOTT LABORATORIES

THE PHYSIOCONTROL CORP UNIT IN REDMOND WASH ALSO AMONG THE NINE
COMPANIES IN THE DEVICE DIVISION HAS BEEN ESPECIALLY PROBLEMPRONE IN THE
PAST TWO YEARS IT ONCE HAD 150 MILLION IN ANNUAL SALES BUT ITS PRODUCTION
WAS SHUT DOWN BY THE FOOD AND DRUG ADMINISTRATION UNTIL RECENTLY THE
FEDERAL AGENCY FOUND A HOST OF PRODUCTION AND RECORDKEEPING DEFICIENCIES AT
PHYSIOCONTROL WHICH MAKES EMERGENCY CARDIAC DEFIBRILLATORS USED BY
PARAMEDICS TO REVIVE PATIENTS WHO ARE NEAR DEATH

THE OTHER COMPANIES IN LILLY'S MEDICALDEVICE DIVISION ARE DEVICES FOR
VASCULAR INTERVENTION INC HEART RHYTHM TECHNOLOGIES INC IVAC CORP
ORIGIN MEDSYSTEMS INC AND PACIFIC BIOTECH INC 9401180098 940118 LITTLE
MICROWARE AIMS TO BE A MULTIMEDIA GIANT  BY JOHN J KELLER STAFF
REPORTER OF THE WALL STREET JOURNAL

A TINY DES MOINES SOFTWARE COMPANY HOPES TO DO FOR MULTIMEDIA SYSTEMS WHAT
MICROSOFT CORP HAS DONE FOR PCS

MICROSOFT CAME TO DOMINATE THE PERSONALCOMPUTER INDUSTRY BY DESIGNING THE
INTERNAL SOFTWARE KNOWN AS THE OPERATING SYSTEM THAT MADE MILLIONS OF PCS
RUN NOW LITTLEKNOWN MICROWARE SYSTEMS CORP IS TRYING TO GET THE SAME HOLD
IN INTERACTIVE SOFTWARE BY DESIGNING THE OPERATING SYSTEM FOR THE TV SETTOP
BOXES EXPECTED TO BE IN MILLIONS OF HOMES

LITTLEKNOWN MICROWARE HAS JUST LANDED A COVETED PIECE OF BUSINESS BELL
ATLANTIC CORP THE REGIONAL BELL COMPANY EXPECTS TO DISTRIBUTE AN
INTERACTIVE SERVICE TO 10 MILLION HOUSEHOLDS BY THE TURN OF THE CENTURY IT
HAS PLACED ORDERS FOR SETTOP BOXES FROM THREE SUPPLIERS ALL THE BOXES IN
TURN RELY ON MICROWARE'S OS/9 SOFTWARE

THE COMPANY'S SOFTWARE IS ALREADY USED IN HUNDREDS OF CRITICAL SYSTEMS
WORLDWIDE THE CALIFORNIA DEPARTMENT OF TRANSPORTATION HAS BEGUN RELYING ON
OS/9 TO RUN TRAFFIC LIGHTS TOLL BOOTHS AND EVEN TO HELP WEIGH TRUCKS
CHRYSLER CORP USES OS/9 IN THE COMPUTER SYSTEMS THAT DESIGN AND BUILD
BRAKING SYSTEMS AT THE UNIVERSITY OF CERN IN SWITZERLAND THE PARTICLE
ACCELERATOR COULDN'T SMASH ATOMS WITHOUT THOUSANDS OF MICROWARE SYSTEMS
CONTROLLING ITS MAGNETS

THE KEY FEATURE AT THE HEART OF THESE MYRIAD APPLICATIONS IS OS/9'S ABILITY
TO HANDLE MULTIPLE REALTIME TASKS SIMULTANEOUSLY WHICH CAN BE TRACED TO
THE SOFTWARE'S ROBOTIC ORIGINS SUCH MULTITASKING POWERS ARE SEEN AS A
CRITICAL FEATURE FOR INTERACTIVE NETWORKS LETTING INTERACTIVISTS SHOP ON
A NETWORK OR RESPOND INSTANTLY TO THE BUTTONPRESSING OF FELLOW
GAMEPLAYERS

THEIR SOFTWARE HAS A LOT OF THE FUNCTIONS THAT EVERYBODY BELIEVES WILL BE
NECESSARY FOR THE FUTURE INTERACTIVE SERVICES SAYS LUCY FJELDSTADT FORMER
VICE PRESIDENT OF MULTIMEDIA AT INTERNATIONAL BUSINESS MACHINES CORP WHO
NOW RUNS A CONSULTING FIRM IN NEW CANAAN CONN

MICROWARE WOULD SEEM TO BE A SURPRISE CONTENDER IN THE HIGHLY COMPETITIVE
MULTIMEDIA SWEEPSTAKES IN WHICH MICROSOFT HAS INVESTED 100 MILLION A YEAR
IT WAS FOUNDED 17 YEARS AGO BY KENNETH KAPLAN A COMPUTER BUFF AT DRAKE
UNIVERSITY IN DES MOINES AND TWO FRIENDS THEY STARTED OUT TRYING TO BUILD
AN EDUCATIONAL ROBOT FOR TEACHING HANDICAPPED CHILDREN A PROJECT THAT WENT
NOWHERE

MICROWARE GOT ITS FIRST BIG BREAK IN 1980 WHEN MOTOROLA INC APPROACHED MR
KAPLAN AND HIS PARTNERS AND ASKED THEM TO DESIGN AN OPERATING SYSTEM FOR A
NEW MICROPROCESSOR TODAY ABOUT 80 OF OUR BUSINESS IS MOTOROLABASED MR
KAPLAN SAYS WE OWE OUR EXISTENCE TO THEM

BY 1982 TANDY CORP CHOSE OS/9 FOR ITS TRS80 COLOR COMPUTER AN EARLY
ENTRY IN HOME COMPUTERS SOON AFTER FUJITSU LTD IN JAPAN FITTED ITS
MACHINES WITH OS/9 BY 1986 WHEN PHILIPS AND SONY CORP BEGAN LOOKING FOR A
REALTIME OPERATING SYSTEM FOR THEIR CDINTERACTIVE PLAYER THEY TURNED TO
MICROWARE BECAUSE OS/9 WAS PROVEN IN LARGE COMMERCIAL AND SCIENTIFIC
PROJECTS

MICROSOFT LAST YEAR ALLIED WITH CHIP MAKER INTEL CORP AND CABLEBOX MAKER
GENERAL INSTRUMENT CORP IN A BID TO DOMINATE THE SETTOP MARKET BUT THE
TRIO HASN'T ANNOUNCED A FINAL PRODUCT AND SEEMS TO BE RUNNING BEHIND
SCHEDULE THE EFFORT ALSO RAN INTO RESISTANCE WHEN CABLE COMPANIES BALKED AT
MICROSOFT'S PLAN TO CHARGE A FEE EACH TIME A CONSUMER CONDUCTED A
TRANSACTION USING ITS SETTOP SOFTWARE

MICROWARE'S FOUNDER MR KAPLAN SAYS MICROSOFT'S EFFORTS TO CONTROL THE
MARKET SIMPLY WON'T WORK THIS TIME ANYBODY IN COMPUTERS ALWAYS TALKS ABOUT
HOW THEY SUPPORT OPEN STANDARDS HE SAYS BUT IN THE DARK RECESSES OF
THEIR GREEDY LITTLE HEARTS THEY WANT THINGS TO BE PROPRIETARY AND USE THAT
EDGE TO THEIR OWN ADVANTAGE

OS/9 BY CONTRAST WILL WORK WITH MYRIAD RIVAL SYSTEMS MR KAPLAN SAYS
INCLUDING GEAR FROM IBM PHILIPS NV AND SEVERAL OTHER SETTOP VENDORS
SELECTED LAST WEEK BY BELL ATLANTIC NOR DOES MICROWARE INTEND TO IMPOSE
ADDITIONAL PERTRANSACTION USER FEES BEYOND WHAT IT CHARGES FOR LICENSING
OS/9 THE COMPANY SAYS

MICROWARE'S OS/9 WENT HEADTOHEAD WITH A PROTOTYPE FROM MICROSOFT CALLED
MODULAR WINDOWS IN A TEST BY BELL ATLANTIC SAYS ARTHUR ORDUNA A MICROWARE
MARKETING MANAGER HE BRAGS THAT OS/9 BEAT ITS RIVAL

A MICROSOFT SPOKESWOMAN DOESN'T DISPUTE THIS ACCOUNT HOWEVER SHE SAID
MICROSOFT IS INTERESTED IN NOT ONLY SUPPLYING REALTIME SOFTWARE FOR SETTOP
BOXES BUT ALSO GRAPHICAL SOFTWARE THAT PRESENTS A PICTURE ON THE TELEVISION
SCREEN THAT COULD ENTICE CONSUMERS TO USE THE SERVICE CHAIRMAN BILL
GATES HAS SAID THAT THE EARLY INTERACTIVE SERVICES TRIALS WILL BE
DISAPPOINTING BECAUSE WE HAVEN'T MADE ENOUGH PROGRESS IN USER INTERFACES AND
THE RICHNESS OF SERVICES DELIVERED SHE ADDED THAT MICROSOFT MAY BE BEHIND
SCHEDULE BECAUSE IT IS TRYING TO DELIVER SOFTWARE FOR SEVERAL SEGMENTS OF
THE MARKET INCLUDING CABLE HEADEND SYSTEMS SETTOP BOXES AND THE PROGRAMS
DELIVERED OVER THE NETWORKS

MR KAPLAN SAYS MICROSOFT IN MARCH 1986 TRIED TO BUY MICROWARE MICROSOFT
HAD BEGUN TRADING PUBLICLY ON THE OVERTHECOUNTER MARKET ACCORDING TO MR
KAPLAN MR GATES SAW THAT MICROWARE WAS CHOSEN AS THE OPERATING SYSTEM FOR
THE PHILIPSSONY CDI MACHINE AND HE WANTED INTO THAT MARKET BADLY RATHER
THAN DESIGN A NEW OPERATING SYSTEM MR GATES FIGURED IT MADE MORE SENSE TO
BUY MICROWARE MR KAPLAN SAYS I REFUSED AND WANTED A JOINT VENTURE
INSTEAD AND THE TALKS FELL APART MR GATES THROUGH A SPOKESWOMAN
CONFIRMED THE ACCOUNT

COMPARED WITH MICROSOFT MICROWARE IS TRULY MICRO THE CLOSELY HELD COMPANY
DOESN'T GIVE OUT NUMBERS MR KAPLAN ITS PRESIDENT WILL SAY ONLY THAT
WE'RE ONE ONEHUNDREDTH THE SIZE OF MICROSOFT WHICH WOULD INDICATE
REVENUE OF ABOUT 25 MILLION OR MORE TONIGHT BELL ATLANTIC'S KEY PARTNER
IN MULTIMEDIA SOFTWARE ORACLE CORP IS STAGING EVENTS IN FOUR CITIES TO
OUTLINE ITS INTERACTIVE AMBITIONS

THE BELL ATLANTIC EFFORT IS A MUCHWATCHED AFFAIR BECAUSE WHILE THE PHONE
COMPANY COULD CHANGE ITS SUPPLIERS IT INTENDS TO DELIVER NEW SERVICES TO
250000 HOMES BY YEAR'S END ADDING ANOTHER MILLION HOMES IN 1995 BELL
ATLANTIC'S PLAN TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC COULD GIVE
IT ACCESS TO MORE THAN 20 MILLION HOMES

TODAY HALF OF MICROWARE'S SALES ARE OVERSEAS AS ARE HALF OF MICROWARE'S 200
EMPLOYEES THEY HAVE A NICE TIGHT SYSTEM THAT OPERATES WELL SAYS BRIAN
SMITH VICE PRESIDENT OF MARKET DEVELOPMENT AT PHILIPS'S DIGITAL VIDEO
COMMUNICATIONS SYSTEMS DIVISION IT'S POWERFUL ENOUGH TO DO REALTIME VIDEO
FUNCTIONS AND YOU CAN STILL LOAD APPLICATIONS SOFTWARE ON TOP
9401180097 940118 FINANCING BUSINESS ONEX CORP

ONEX CORP TORONTO SAID IT EXPECTS TO RAISE 975 MILLION CANADIAN DOLLARS
US736 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF 55 MILLION
SUBORDINATE VOTING SHARES ONEX SAID IT WILL HAVE ABOUT 41 MILLION
SUBORDINATE VOTING SHARES OUTSTANDING AFTER THE ISSUE THE UNDERWRITING
GROUP IS BEING LED BY WOOD GUNDY INC AND RBC DOMINION SECURITIES INC ONEX
AN INDUSTRIAL HOLDING COMPANY SAID PROCEEDS WILL BE USED TO FINANCE FUTURE
ACQUISITIONS 9401180096 940118 FINANCING BUSINESS TRITON ENERGY CORP

TRITON ENERGY CORP DALLAS SAID IT HAS OFFERED TO ACQUIRE THE MINORITY
SHARES OUTSTANDING OF ITS TRITON EUROPE PLC UNIT IN EXCHANGE FOR NEW TRITON
ENERGY CONVERTIBLE PREFERRED SHARES THE OFFER VALUES THE TRITON EUROPE
SHARES WHICH TRADE IN LONDON AT 375 PENCE ABOUT 56 CENTS A SHARE
GIVING THE TRANSACTION AN INDICATED VALUE OF 187 MILLION TRITON ENERGY
AN OIL AND GAS COMPANY CURRENTLY OWNS 595 OF THE SHARES OUTSTANDING OF
TRITON EUROPE TRITON ENERGY INTENDS TO ISSUE THE PREFERRED SHARES IN
EXCHANGE FOR THE APPROXIMATELY 334 MILLION TRITON EUROPE SHARES NOT
CURRENTLY HELD BY THE COMPANY THE CONVERTIBLE PREFERRED SHARES WILL PAY A
FIXED DIVIDEND OF 5 A YEAR AND WILL BE CONVERTIBLE INTO THE COMMON STOCK OF
TRITON ENERGY AT AN APPROXIMATE 20 PREMIUM TO MARKET VALUE AT CLOSING IT
IS ESTIMATED THAT THE CLOSING WILL OCCUR WITHIN THE NEXT 120 DAYS
9401180095 940118 TECHNOLOGY & MEDICINE BMC SOFTWARE INC PAYS 337
MILLION TO ENTER NEW FIELD  BY KYLE POPE STAFF REPORTER OF THE
WALL STREET JOURNAL

HOUSTON BMC SOFTWARE INC ABANDONING ITS RELIANCE ON MAINFRAME
TECHNOLOGY SAID IT ACQUIRED CLOSELY HELD PATROL SOFTWARE WHICH USES SMART
AGENT TECHNOLOGY TO TROLL FOR PROBLEMS ON CORPORATE COMPUTER NETWORKS

BMC SAID IT PAID 337 MILLION FOR PATROL BASED IN REDWOOD SHORES CALIF
AND ITS PATROL SOFTWARE PTY LTD AFFILIATE IN AUSTRALIA

THE PURCHASE MARKS A SHARP TURNABOUT IN STRATEGY FOR BMC WHICH CURRENTLY
DERIVES ALL OF ITS REVENUE FROM MAINFRAMECOMPUTER TECHNOLOGY THE COMPANY
HAS SURPRISED MANY ANALYSTS IN ITS ABILITY TO STAY PROFITABLE DESPITE A
STAMPEDE AWAY FROM MAINFRAMES TO SMALLER MACHINES LIKE WORKSTATIONS AND
SERVERS TIED TO NETWORKS OF PERSONAL COMPUTERS

DURING THE FISCAL SECOND QUARTER ENDED SEPT 30 BMC REPORTED NET INCOME OF
202 MILLION OR 77 CENTS A SHARE ON REVENUE OF 68 MILLION BMC DIDN'T
PROVIDE REVENUE OR EARNINGS FIGURES FOR PATROL

THOUGH BMC SAID IT STILL WILL SELL MAINFRAME SOFTWARE ITS FOCUS NOW WILL BE
ON COMPUTER NETWORKS USED BY COMPANIES TO RUN APPLICATIONS CRITICAL TO THEIR
BUSINESS RUSS CACCAMISI BMC'S EXECUTIVE DIRECTOR OF MARKETING SAID THE
COMPANY EXPECTS ITS NONMAINFRAME REVENUE TO GROW TO DOUBLE DIGIT
PERCENTAGES FROM ZERO OVER THE NEXT SEVERAL QUARTERS AS BMC BEGINS TO MARKET
PATROL'S TECHNOLOGY

PATROL'S SOFTWARE USES KNOWLEDGE MODULES KNOWN ELSEWHERE AS SMART
AGENTS TO PATROL COMPUTER NETWORKS IN SEARCH OF PROBLEMS THAT COULD LEAD
TO LOST TIME OR MANGLED DATA PROBLEMS SPOTTED BY THE AGENTS ARE RELAYED TO
A CENTRAL CONSOLE AND POSSIBLY FIXED BEFORE THE SYSTEM COLLAPSES

MR CACCAMISI SAID THE TECHNOLOGY IS DESIGNED TO APPEAL TO CORPORATE
INFORMATION DIRECTORS WHO STILL FEAR A LOSS IN CONTROL AND OVERSIGHT AS
THEY SEEK TO SHIFT TO SMALLER COMPUTING PLATFORMS IT'S IMPOSSIBLE TO
MANAGE THESE NETWORKS WITH HUMAN BEINGS MR CACCAMISI SAID

IN NASDAQ STOCK MARKET TRADING YESTERDAY BMC STOCK CLOSED AT 6325 UP 3
9401180094 940118 DEAR NAOMI WOMEN OPINIONS AND THE PRESS  
BY AMITY SHLAES

JANUARY THE CALENDAR OVER MY COMPUTER SAYS AND AT THE TOP IN GREEN INK
WOMEN THIS PENNED QUESTION TO MYSELF REPRESENTS THE TINY BYPRODUCT OF A
DEBATE RAGING IN MAGAZINES AND OPINION PAGES LIKE THIS ONE LATE LAST YEAR
THE NEW REPUBLIC ITSELF NO BASTION OF TOWERING FEMALES PUBLISHED A COVER
STORY BY WRITER NAOMI WOLF ARGUING THAT MEN ALONE CONTROL THE WORLD OF
OPINION MAKING

MS WOLF'S ARGUMENT RELIED ON A STUDY THAT SHOWED WOMEN WRITE A MERE 10 TO
20 OF OPED ARTICLES THE GROUP THAT PRODUCED THE STUDY WOMEN MEN &
MEDIA WAS RUMORED TO BE PLANNING ANOTHER THIS TIME FOR JANUARY SO THE
QUESTION HERE WAS SHOULD WE MAKE AN EFFORT THIS MONTH TO LARD OUR PAGE WITH
WOMEN WRITERS

NO IS THE SHORT ANSWER THE MAIN REASON OF COURSE IS THAT OPED PAGES
OR MAGAZINES AREN'T AFFIRMATIVEACTION SCORE CARDS WHEN AN ARTICLE COMES
INTO A PAPER EDITORS MEN AND WOMEN ASK QUESTIONS ABOUT IT IS THE ARTICLE
TIMELY IS IT WELL WRITTEN ON A PAGE LIKE OURS WHICH STANDS FOR INDIVIDUAL
LIBERTY WE MAY ASK WHAT DOES THIS SAY ABOUT FREE MARKETS RARELY IS OUR
QUESTION IS THIS BY A WOMAN

WHAT ELSE IS WEIRD ABOUT THIS DISCUSSION WELL FIRST OF ALL ITS TERMS ARE
WRONG MS WOLF WRITES THAT THE AGORA OF OPINION IS LARGELY A MEN'S CLUB

YET A NUMBER OF WOMEN ARE REGULARS IN WHAT MS WOLF HAS CALLED THE WHITE
BOY ROLODEX ONE IS COLUMNIST MONA CHAREN ANOTHER IS LORETTA MCLOUGHLIN
UNTIL RECENTLY EDITORIAL PAGE EDITOR OF THE BOSTON GLOBE ANNE APPLEBAUM IS
FOREIGN EDITOR OF BRITAIN'S MOST INFLUENTIAL OPINION MAGAZINE THE
SPECTATOR TWO WASHINGTON VOICES ARE NINA TOTENBERG AND COKIE ROBERTS MEG
GREENFIELD RUNS THE WASHINGTON POST'S EDITORIAL PAGE THE JOURNAL'S
EDITORIAL PAGE PRINTS A SLIGHTLY GREATER SHARE OF ARTICLES SUBMITTED BY
WOMEN THAN BY MEN THE ASSISTANT EDITOR HERE IS MELANIE KIRKPATRICK DOROTHY
RABINOWITZ AND MANUELA HOELTERHOFF ALSO WRITE

WHY THEN THOSE PERCENTAGES ONE REASON IS THAT AGE THANK HEAVEN STILL
HAS SOME AUTHORITY AND MANY OLDER WOMEN UNFORTUNATELY DIDN'T GET THE
EXPERIENCE THAT YIELDS A PUNDIT ANOTHER IS ONE THAT MIGHT FIT IN WITH MS
WOLF'S ARGUMENT ALTHOUGH NOT AS SHE MEANS IT TO WOMEN ARE CIVILIZERS THEY
CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON CROSSFIRE BECAUSE THEY FIND
THEM UNDIGNIFIED THE OPED GAME ALTHOUGH IT TAKES PLACE IN THE TAMER PRINT
WORLD CAN ALSO BE BRUTAL NOT EVERYONE LONGS TO SCRAMBLE LIKE A PIT BULL
WITH HIS OR HER FELLOW OPINION MAKERS OVER A PIECE OF WEEKOLD MEAT

UNFORTUNATELY SAYS MS WOLF YOU CAN'T WRITE STRONG ASSERTIVE PROSE IF
YOU ARE TOO ANXIOUS ABOUT PRESERVING CONSENSUS HERE WE GET TO THE NUB OF
THE PROBLEM WHOSE CONSENSUS THE CONSENSUS OF COURSE OF SECONDGENERATION
FEMINISTS LIKE MS WOLF YET THIS IS A COTERIE A SMALL GROUP WHO ARE THE
RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES MS WOLF AND
I ATTENDED THE SAME COLLEGE IN THE SAME YEARS SO HERE I CAN SPEAK WITH
AUTHORITY THE SAD FACT ABOUT THESE WOMEN IS THAT THEIR CONSENSUS IS NOT
ALWAYS INTERESTING

WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX
ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS PASSIVE BUT
INSTITUTIONALIZED DISCRIMINATION IN MS WOLF'S WORDS THEY DO SO BECAUSE
THAT IS WHAT THAT LIMITED CONSENSUS TELLS THEM IS THEIR ISSUE

PRECHILDBEARING WOMANHOOD PER SE IS NOT HOWEVER THE NUMBERONE ISSUE FOR A
LARGE GROUP A GROUP INCLUDING ALL AGES AND BOTH SEXES FOR THOSE PEOPLE WE
DO PRINT ARTICLES ARTICLES THAT INDEED OCCASIONALLY HAVE FEMALE AUTHORS ON
HEALTH CARE ELIZABETH MCCAUGHEY ON NORTH KOREA'S BOMB HEATHER WILSON
ON JUVENILE DELINQUENTS WITH SHOTGUNS RITA KRAMER

WOLFSTYLE REVOLUTIONARY ZEAL SPITS ON SUCH WOMEN'S ACCOMPLISHMENTS FOR IT
VIEWS THEM AS TRAPPED IN A CULTURAL CAGE DOMINATED BY MEN NEVER MIND GATT
OR FOREIGN POLICY DOCTRINES OR PROPERTY PRICES OR WHATEVER ELSE
JOURNALISTS WHO HAPPEN TO BE WOMEN CONCERN THEMSELVES WITH WRITES A WRY
ANNE APPLEBAUM IN A RESPONSE TO MS WOLF WE COULD ALL CALL OURSELVES
FEMINISTS ONE SEEMS TO NEED NO CREDENTIALS AND THEN EARN LOTS OF
MONEY

THE MOST CONCRETE DAMAGE OF WORK LIKE MS WOLF'S IS THE QUOTAIZATION OF
NEWSPAPERS GROUPS LIKE WOMEN MEN & MEDIA QUANTIFY REFERENCES TO WOMEN IN
PAPERS AND FEMALE BYLINES AND THEN USE THOSE FIGURES TO THREATEN THE
RESULT IS LOWER QUALITY ONE OPED EDITOR FROM ANOTHER NEWSPAPER TOLD ME
THAT HE GOT A WATCHDOG CALL FROM A COLLEAGUE WARNING THE PAGE HAD TOO FEW
FEMALE BYLINES THE PAGE INSTANTLY INSTITUTED A 33 QUOTA BEING SURVEILLED
IS UNPLEASANT HE SAID WORSE THOUGH IS THAT THE CONTENT DOESN'T MATTER AT
ALL BUT SIMPLY THE GENDER OF THE BYLINE

LESS DIRECT BUT AS PAINFUL IS THE DISSERVICE NEW REVOLUTIONARY FEMINISTS
DO TO THE OLDER WOMEN WHO WENT BEFORE US THESE WERE THE REAL PIONEERS
WOMEN WHO FOUGHT PALPABLE INJUSTICE IN THE DAYS WHEN A WOMAN'S PLACE REALLY
WAS WIPING GRINDS AT THE COFFEE MACHINE MS WOLF DISDAINS JEANE
KIRKPATRICK WHOSE BATTLE AT THE UN AGAINST SEXIST COMMUNISTS AND THIRD
WORLD JERKS HELPED END THE COLD WAR THE AMBASSADOR'S CRIME WRITING IN AN
OBJECTIVE NO UTERUS STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE
FEMALE BODY

THE UNHAPPY CONSEQUENCE OF ATTACKS ON NO UTERUS WRITING IS A NEW
GHETTOIZATION THUS THE OLD SEXIST NEW YORK TIMES EDITORIAL PAGE FEATURED
FOREIGN AFFAIRS WRITER FLORA LEWIS THE NEW SENSITIVE TIMES GIVES US ANNA
QUINDLEN A DOYENNE OF MATERNAL PROSE BY MS WOLF'S OWN DESCRIPTION IS THIS
PROGRESS

THE TRUTH THOUGH IS THAT NEWSPAPERS WILL PRINT NO UTERUS ARTICLES ALL THE
TIME BECAUSE THEY CONTAIN FACTS BECAUSE THEY EXCITE BECAUSE THEY ARE NOT
MUSINGLY SOLIPSISTIC WELL RATTLE THE BARS ON YOUR CAGE NAOMI MIGHT SAY
WELL I MIGHT RESPOND RATTLE THE BARS ON YOURS

MISS SHLAES THE JOURNAL'S OPED EDITOR HOPES THIS ARTICLE WILL FILL SOME
WOMEN QUOTAS 9401180093 940118 MARKETSCAN MANY CELEBRITY FOODS ENJOY
ONLY 15 MINUTES OF FAME  BY KATHLEEN DEVENY STAFF REPORTER OF THE
WALL STREET JOURNAL

PAUL NEWMAN'S STAR IS FADING AT LEAST AMONG SUPERMARKET SHOPPERS

NOT THAT FRANK SINATRA AND PHYLLIS GEORGE ARE DOING MUCH BETTER MOST
CELEBRITY BRANDS ARE FARING POORLY THESE DAYS BECAUSE OF THE WEAK ECONOMY
SHOPPERS HAVE BECOME MORE PRICE CONSCIOUS AND CELEBRITY PRODUCTS SELL AT
PREMIUM PRICES

BUT THE POOR PERFORMANCE OF MR NEWMAN'S PRODUCTS ONE OF THE RARE CELEBRITY
FOOD LINES TO SUCCEED SINCE ITS INCEPTION IN 1982 MAY SIGNAL A MORE
FUNDAMENTAL SHIFT I THINK WE ARE JUST LESS IMPRESSED THAN WE USED TO BE
SAYS JUDITH LANGER A CONSUMER BEHAVIOR EXPERT IN NEW YORK THERE IS SO
MUCH PRICESHOPPING TODAY PEOPLE ARE MUCH LESS WILLING TO PAY UP UNLESS
THEY FEEL THERE IS A GOOD REASON

AND DEEP BLUE EYES IT SEEMS AREN'T REASON ENOUGH SUPERMARKET SALES OF
NEWMAN'S OWN SALAD DRESSINGS MR NEWMAN'S ORIGINAL PRODUCT DECLINED 41
DURING THE 52 WEEKS ENDED OCT 10 COMPARED WITH THE SAME PERIOD LAST YEAR
ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF
NEWMAN'S OWN SPAGHETTI SAUCES LEMONADE AND POPCORN ALSO DECLINED THE ONE
BRIGHT SPOT IN THE LINE NEWMAN'S OWN ALLNATURAL BANDITO SALSA

FRANK SINATRA'S AND TOMMY LASORDA'S SPAGHETTI SAUCES ARE ALSO HAVING A ROCKY
TIME THE SINATRA PRODUCTS WERE LICENSED BY A NEW COMPANY EARLIER THIS YEAR
AND THE LASORDA PRODUCTS ARE ABOUT TO GET A NEW MARKETING FIRM ALTHOUGH
BOTH CELEBRITIES' SAUCES CAN BE FOUND ON SOME SUPERMARKET SHELVES THEIR
SALES ARE PLUNGING ACCORDING TO INFORMATION RESOURCES

THE HEYDAY FOR CELEBRITY BRANDS IN PACKAGED GOODS WAS THE MID1980S BUT
EVEN THEN THEY BARELY ENJOYED THEIR 15 MINUTES IN THE LIMELIGHT WHO
REMEMBERS GLORIA VANDERBILT SALAD DRESSING OR DIANE VON FURSTENBERG FACIAL
TISSUES HOW ABOUT BILL BLASS CHOCOLATES AND YVES SAINT LAURENT CIGARETTES
MANY CELEBRITY PRODUCTS FAILED SIMPLY BECAUSE THEIR QUALITY WASN'T GOOD
ENOUGH OR BECAUSE THEY WERE SOLD BY TINY COMPANIES WITHOUT MUCH MARKETING
CLOUT

THE STREAM OF NEW CELEBRITY BRANDS HAS SLOWED SINCE THEN BUT MARKETERS
HAVEN'T GIVEN UP NEWMAN'S OWN IS TESTING PRETZELS ON THE WEST COAST AND
TINY TKI FOODS INC BASED IN SPRINGFIELD ILL WHICH RECENTLY ACQUIRED THE
LICENSE FOR THE FRANK SINATRA LINE OF SAUCES IS ROLLING OUT FOUR NEW
PRODUCTS INCLUDING A MARSALA SAUCE

THE NAME GETS CONSUMERS' ATTENTION SAYS BRENDA EDEN MARKETING MANAGER
FOR THE SINATRA LINE AT TKI THERE ARE THOUSANDS OF ITEMS IN THE
SUPERMARKET AND YOU'VE GOT ABOUT THREE SECONDS TO GET SHOPPERS TO TAKE A
SECOND LOOK

MARKETING EXPERTS SAY THERE'S SOMETHING TO THAT THEORY A SMALL COMPANY THAT
CAN'T AFFORD NATIONAL ADVERTISING WOULD FIND IT HARD TO GET SPACE ON
SUPERMARKET SHELVES FOR A NEW SPAGHETTI SAUCE FOR EXAMPLE BUT SNAG A
CELEBRITY THAT HAS SOME CREDIBILITY TO PITCH THE PRODUCT AND IT WILL WIND
UP IN AT LEAST A FEW SHOPPING CARTS ANOTHER MUST A BIG PRODUCT CATEGORY
SUCH AS PASTA SAUCE AND SALAD DRESSINGS WITH PLENTY OF ROOM FOR NICHE
PLAYERS

THERE ARE ONLY A HANDFUL OF CANDIDATES THAT ARE SUCCESSFUL SAYS RICHARD
REISER PRESIDENT OF COGITO A NEWPRODUCT DEVELOPMENT COMPANY IN TARRYTOWN
NY THE CELEBRITY MUST BE A CREDIBLE SPOKESMAN AND THE PRODUCT MUST
DELIVER

COUNTRYWESTERN ENTERTAINER JIMMY DEAN MADE A HIT WITH HIS LINE OF BREAKFAST
SAUSAGES WHICH HAVE BEEN ON THE MARKET SINCE 1968 PARTLY BECAUSE HIS
DOWNHOME IMAGE MESHED NICELY WITH THE IDEA OF BIG HEARTY BREAKFASTS MR
DEAN WHO SOLD HIS COMPANY TO SARA LEE CORP IN 1984 HAS ALSO PLAYED AN
ACTIVE ROLE IN PROMOTING THE PRODUCTS APPEARING IN COMMERCIALS AND ON SOME
OF THE PACKAGING

MR NEWMAN STRUCK A NERVE WITH SHOPPERS PARTLY BECAUSE HE IS LIKED BY BOTH
MEN AND WOMEN AND THE PRODUCTS ARE BILLED AS NATURAL BUT MARKETING EXPERTS
ALSO ATTRIBUTE THE SUCCESS OF NEWMAN'S OWN TO ITS POLICY OF DONATING ITS
AFTERTAX PROFITS TO CHARITY A STRATEGY THAT MAKES SOME SHOPPERS FEEL GOOD
ABOUT THE ITEMS PEOPLE THINK HE IS A GOOD GUY THEY FIND OUT IT'S A DECENT
PRODUCT AND THEY KNOW THE MONEY IS GOING TO CHARITY MR REISER SAYS SO
WHY NOT BUY IT 9401180092 940118 HEARD ON THE STREET 
METALLGESELLSCHAFT RIPPLES ARE ROCKING CASTLE ENERGY  BY WILLIAM
POWER STAFF REPORTER OF THE WALL STREET JOURNAL

HERE'S THE DARK REFLECTION OF ALL THOSE STOCK OFFERINGS THAT SOARED LAST
YEAR CASTLE ENERGY A RADNOR PA OIL AND GAS COMPANY IS FAST TURNING
INTO A NIGHTMARE FOR KIDDER PEABODY & CO

AND THE BAD DREAM MAY NOT BE OVER YET FOR INVESTORS EVEN THOUGH CASTLE
ENERGY SHARES BOUNCED UP 1/4 YESTERDAY TO 10 3/8 ON THE NASDAQ STOCK MARKET

THE STORY STARTS WITH WHAT HAS TO BE ONE OF THE WORSTTIMED SECURITIES
OFFERINGS OF RECENT YEARS THE KIDDERLED NOV 24 SALE OF 28 MILLION
ADDITIONAL SHARES OF CASTLE ENERGY WITHIN DAYS THE STOCK PRICE OF CASTLE
ENERGY'S 40OWNER AND SOLE CUSTOMER METALLGESELLSCHAFT OF GERMANY BEGAN
SLUMPING IN FRANKFURT THE GERMAN COMPANY WAS SOON GRAPPLING WITH
NEARCRIPPLING FINANCIAL PROBLEMS THAT PUSHED IT CLOSE TO A GERMAN
BANKRUPTCYLAW FILING IN RECENT DAYS

MEANWHILE CASTLE ENERGY SHARES SOLD IN THE OFFERING HAVE PLUNGED 31 IN
JUST TWO MONTHS

DURING THE WEEKEND METALLGESELLSCHAFT AGREED TO A 19 BILLION RESCUE
PACKAGE WITH CREDITORS AND CASTLE ENERGY SHARES RALLIED TO AS HIGH AS 12
1/2 YESTERDAY BEFORE EBBING TO 10 3/8 BUT SOME TRADERS BET CASTLE ENERGY
SHARES WILL CONTINUE TO FALL DESPITE THE GERMAN COMPANY'S BAILOUT PACKAGE
EVEN IF THE GERMAN COMPANY SURVIVES IT WILL HAVE TO CUT COSTS THERE ARE
MORE ROCKY ROADS AHEAD FOR CASTLE ENERGY SAYS ANALYST ASHOK VASVANI OF
GRANTCHESTER SECURITIES IN NEW YORK

PAPERS FILED WITH THE US SECURITIES AND EXCHANGE COMMISSION LAST WEEK BY
METALLGESELLSCHAFT SAY THAT IN CONNECTION WITH THE GERMAN COMPANY'S
FINANCIALRESCUE PLAN IT MAY DETERMINE TO RETAIN RESTRUCTURE DISPOSE OF
OR PLEDGE CERTAIN ASSETS INCLUDING ITS CASTLE ENERGY SHARES

WORD OF THE SEC FILING DATED JAN 11 HASN'T YET GOTTEN AROUND ON WALL
STREET AND SOME INVESTORS WILL PROBABLY BE INCLINED TO BRUSH IT ASIDE
FIGURING THE IMMEDIATE CRISIS IS PAST BUT IT'S STILL POSSIBLE THAT
INVESTORS WILL SEE METALLGESELLSCHAFT'S HOLDING AS A BIG BLOCK OF STOCK
OVERHANGING THE MARKET WEIGHING ON THE PRICE WHILE THE GERMAN COMPANY
HASN'T DECIDED TO SELL THE STAKE YET THERE CAN BE NO ASSURANCES THAT IT
WILL NOT DO SO IN THE FUTURE THE SEC FILING SAYS ASKED TO UPDATE THE
FILING YESTERDAY A NEW YORK SPOKESMAN FOR METALLGESELLSCHAFT SAID THERE'S
NO CHANGE IN THAT

MEANWHILE THE QUESTION REMAINS IN INVESTORS' MINDS DID KIDDER OR CASTLE
ENERGY KNOW THERE WAS TROUBLE AFOOT WHEN THEY LAUNCHED THE PUBLIC OFFERING
LAST NOVEMBER KIDDER WON'T COMMENT SAYING IT DOESN'T DISCUSS
INVESTMENTBANKING CLIENTS OTHER INVESTMENT BANKERS SAY THAT KIDDER
PROBABLY WAS AS SURPRISED AS INVESTORS AND THE GERMAN COMPANY'S BOARD WHICH
SACKED SOME METALLGESELLSCHAFT SENIOR MANAGERS INCLUDING THE CHAIRMAN IN
DECEMBER FOR ALLEGEDLY WITHHOLDING INFORMATION

IF LITIGATION ARISES KIDDER HAS SOME PROTECTION LAST WEEK'S SEC FILING
INCLUDES A LETTER FROM METALLGESELLSCHAFT'S US OFFICE TO KIDDER DATED
NOV 24 THE LETTER PROMISES THAT THE GERMAN CONCERN WILL HOLD HARMLESS AND
INDEMNIFY KIDDER AND OTHER UNDERWRITERS FROM LOSS IF THERE PROVES TO BE AN
UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT OF A MATERIAL FACT REGARDING
METALLGESELLSCHAFT IN THE CASTLE ENERGY PROSPECTUS

FOR EXAMPLE CASTLE ENERGY BUYERS WOULD HAVE LIKED TO HAVE KNOWN WHAT CASTLE
ENERGY DIDN'T DISCLOSE UNTIL LAST FRIDAY THAT THE GERMAN COMPANY'S
FINANCIAL WOES COULD HAVE A MATERIAL ADVERSE EFFECT ON CASTLE WHICH
RELIES TOTALLY UPON METALLGESELLSCHAFT

UNDER A CONTRACT METALLGESELLSCHAFT BUYS OIL PRODUCTS FROM CASTLE ENERGY
WHICH PROCESSES AS MUCH AS 126000 BARRELS A DAY AT MUCH HIGHER PRICES THAN
AN INDEPENDENT BUYER WOULD PAY WHY A FEW YEARS AGO THE GERMAN COMPANY WAS
EAGER TO EXPAND IN THE US AND DIDN'T HAGGLE TOO HARD THIS COZY
ARRANGEMENT HAS BEEN JUST FINE FOR CASTLE ENERGY UNTIL NOW BUT IT DOESN'T
LOOK SO HOT NOW THAT METALLGESELLSCHAFT WILL BE LOOKING TO CUT COSTS

MR VASVANI SAYS MY POINT IS I'M SURE NOW THAT METALLGESELLSCHAFT HAS
BEEN SAVED BUT THEY'RE GOING TO BE UNDER TREMENDOUS SCRUTINY EVERY
CONTRACT PARTICULARLY ONE AS SEEMINGLY ONESIDED AS THE CASTLE ENERGY ONE
WILL BE UNDER QUESTION HE SAYS THE BOARD WILL DO EVERYTHING AND ANYTHING
TO GET OUT OF LOSING PROPOSITIONS AND THIS IS A LOSING PROPOSITION IT
MAKES NO SENSE

SO WHAT IS CASTLE ENERGY STOCK WORTH IF THE COMPANY DOESN'T HAVE ITS
CONTRACT WITH METALLGESELLSCHAFT PICK A NUMBER ANYTHING FROM FOUR TO
NINE SAYS MR VASVANI

CASTLE ENERGY'S CHAIRMAN AND CHIEF EXECUTIVE JOSEPH L CASTLE COULDN'T BE
REACHED FOR COMMENT YESTERDAY IN A STATEMENT FRIDAY HOWEVER HE INDICATED
THAT CASTLE ENERGY ISN'T SITTING BACK AND ASSUMING ITS RELATIONSHIP WITH
METALLGESELLSCHAFT WILL CONTINUE AS IT HAS HE SAID HIS COMPANY IS
EXPLORING WITH VARIOUS INVESTMENT BANKING FIRMS STRATEGIES FOR DEALING WITH
THE MG SITUATION AND VARIOUS CONTINGENCIES IT IS UNCERTAIN WHETHER
METALLGESELLSCHAFT WILL HONOR ALL OF ITS CONTRACTUAL OBLIGATIONS ALTHOUGH
IT INTENDS TO THE STATEMENT WARNED

THIS WARNING WAS A MARKED CHANGE FROM JUST A MONTH AGO WHEN CASTLE ENERGY
RESPONDED TO THE GERMAN COMPANY'S FINANCIAL PROBLEMS AND A SUBSEQUENT
DECLINE IN CASTLE ENERGY STOCK BY ASSURING INVESTORS WE HAVE NO REASON TO
BELIEVE MG WILL NOT CONTINUE TO HONOR ALL ITS OBLIGATIONS TO CASTLE ENERGY
CASTLE ENERGY ROSE 1 1/2 THAT DAY

IN FACT SOME ANALYSTS CONTINUE TO BELIEVE THAT CASTLE ENERGY HAS A
PROMISING FUTURE AFTER ITS TWO MONTHS OF TURMOIL

IT'S BEEN THE PERILS OF PAULINE' BUT IT LOOKS LIKE EVERYTHING'S CALMED
DOWN NOW SAYS ERIC PETERSEN OF PENNSYLVANIA MERCHANT GROUP WHO BASES HIS
OPTIMISM ON THE FACT THAT METALLGESELLSCHAFT'S BANK CREDITORS HAVE AGREED TO
THE RESCUE PACKAGE THE ONLY QUESTION HE SAYS HAD BEEN WHETHER
METALLGESELLSCHAFT WOULD SURVIVE OR NOT BUT I THINK THE BIGGEST QUESTIONS
ARE OVER WITH

STILL SMALL INVESTORS SHOULD KEEP IN MIND THAT THIS IS STILL A TENUOUS
SITUATION FOR CASTLE ENERGY AT LEAST ONE PROMINENT INVESTOR APPARENTLY HAS
REALIZED THIS MUTUALFUND MANAGER MICHAEL PRICE HELD 252000 CASTLE ENERGY
SHARES IN HIS 1 BILLION MUTUAL BEACON FUND AS OF LAST YEAR ACCORDING TO
REGULATORY FILINGS MR PRICE WOULDN'T COMMENT YESTERDAY BUT AN ASSOCIATE
SAYS WE SOLD ABOUT THREE WEEKS AGO

EVEN BEFORE THE METALLGESELLSCHAFT FINANCIAL WOES CASTLE ENERGY WAS A RISKY
BET FOR INVESTORS IT IS AN ODDBALL COMPANY SAYS MICHAEL SPOHN HEAD OF
RESEARCH AT JOHN S HEROLD INC AN OIL AND GAS INVESTMENT RESEARCH FIRM
THE VALUE OF THE COMPANY RELIES ON THIS CONTRACT WITH MG AND THERE ARE
OFFICERS OF MG ON THE BOARD OF THIS COMPANY THE SUCCESS OF NOVEMBER'S
STOCK OFFERING SAYS MR SPOHN HIGHLIGHTS THAT IN THIS FROTHY EQUITY
MARKET FOR NEW ISSUES AND SECONDARY OFFERINGS ANY DEAL WILL GO
9401180091 940118 PEPPERAND SALT

YOUR MOTHER'S LOOKING HUNGRY KID

THE PUNISHMENT FITS THE TIME

BRINGS ME TO THE BRINK OF PROFANITY 9401180090 940118 BUSINESS WORLD 
SHRINK INVENTORY LANDS' END LIKES IT LOOSE  BY TIM W FERGUSON

IN THE EVERTURBULENT WORLD OF RETAIL LAST WEEK WAS ANOTHER SERIES OF UPS
AND DOWNS THE SPECIALTY CHAIN MERRYGOROUND CAPSIZED AFTER NAVIGATING THE
TREACHEROUS WATERS OF YOUTH APPAREL AN EARLIER BANKRUPT MACY'S WAS THE
DARLING OF SUITORS AMID SPECULATION OF A COMEBACK BY DEPARTMENT STORES AND
OVERALL SALES IN THE US CLOSED THE YEAR STRONG ENOUGH TO SEND THE BOND
MARKET BACK INTO A FUNK

IN DODGEVILLE WIS MEANWHILE THE BARELY INTERRUPTED CLIMB OF CATALOG
CLOTHIER LANDS' END ACCELERATED TOO ITS NOVEMBERDECEMBER HOLIDAY ORDERS
WERE UP 26 OVER THE PREVIOUS YEAR AND FOR THE FISCAL YEAR TO DATE THE GAIN
IS 19 IF SOMETHING IS GOING RIGHT IN THE LARGER CONSUMER ECONOMY IT IS
DECIDEDLY COPACETIC IN MAIL ORDER MANY OF THE OTHER HOUSES SPIEGEL IS
THE ONLY APPARELSPECIALIZER BIGGER THAN LANDS' END ALSO ARE DOING WELL

DEPARTMENT STORES HERE AND ABROAD ARE CHUCKING BALLAST AS PART OF THEIR
REVIVAL BUT LANDS' END ALONG WITH OTHER DIRECT MARKETERS SET THE LEAN
SCENE SALES PER EACH OF ITS 5681 EMPLOYEES EXCEED THE RETAILINDUSTRY
AVERAGE BY 20

AFTER SOME STUMBLES IN THE EARLY 1990S LANDS' END APPEARS TO BE APPROACHING
ITS TORRID GROWTH OF 198790 WHEN SALES MORE THAN DOUBLED AT THE CURRENT
RATE THE COMPANY WILL EASILY EXCEED 850 MILLION IN ORDERS WHEN FISCAL 1994
ENDS THIS MONTH

IN PURSUING EXPANSION LANDS' END FLOUTS A CARDINAL PRINCIPLE OF THE
CONTEMPORARY MARKETPLACE IT BUILDS INVENTORY THIS SHOWS HOW MARKEDLY
DIFFERENT THE MAILORDER TRADE IS FROM REGULAR RETAILING SAYS WILLIAM T
END WHOSE APPOINTMENT A YEAR AGO CAPPED HIS EMERGENCE AS LEADER OF A NEW
MANAGEMENT TEAM AT THE 30YEAROLD COMPANY DESPITE THE NAME MR END IS NO
SCION HE CAME FROM RIVAL LL BEAN

COMPLETE INVENTORY IS VITAL TO CEMENTING CUSTOMER LOYALTY MR END SAYS AND
AT LANDS' END IF WE DON'T KEEP THE CUSTOMER FOR SEVERAL YEARS WE DON'T
MAKE MONEY WE NEED A LONGTERM PAYBACK FOR THE EXPENSE OF COMING UP WITH A
BUYER HE MOSTLY MEANS THE COST OF FLOODING OUR MAILBOXES WITH CATALOGS
MORE ON THAT IN A BIT

WHEREAS A DEPARTMENTSTORE SHOPPER MAY BE RESIGNED TO MISSING SIZES AND
COLORS THE MAILORDER MARKET ISN'T SO FORGIVING SO LANDS' END MAKES GOOD
ON BACK ORDERS AT ITS OWN MAILING EXPENSE A RAFT OF THOSE THREE YEARS AGO
SHAVED THE CORPORATION'S PROFIT MARGIN TO 41 THE INVENTORY PULLBACK THAT
MAY HAVE SAVED SO MANY SKINS IN THE LAST RECESSION DIDN'T WORK AT LANDS'
END

DETERMINED TO BE IN STOCK 90 OF THE TIME MR END SAYS HE AUTHORIZED MORE
THAN 20 MILLION OR NEARLY 10 EXTRA IN INVENTORY FOR THIS CHRISTMAS
SEASON WITH THE CONSUMER RUSH LANDS' END STILL MISSED THE 90 TARGET BY A
COUPLE OF POINTS

WITH US PRODUCERS ACCOUNTING FOR A SHRINKING SHARE OF LANDS' END
MERCHANDISE ALTHOUGH STILL 80 ACCORDING TO MR END IT IS TOUGHER FOR
SURE TO MAINTAIN SUPPLIES BUT DOABLE WITH THE ALWAYSIMPROVING CONTROL
SYSTEMS AVAILABLE

MR END EXPECTS DEPARTMENT STORES TO CONTINUE TO LOSE A POINT OR TWO A
YEAR OF MARKET SHARE TO COMPETITORS INCLUDING THE CATALOG SELLERS WHICH HE
FIGURES NOW COMMAND 6 TO 7 NOTWITHSTANDING THE DEMISE OF THE SEARS BOOK
AND A GENERAL LULL UNTIL LATELY DIRECT MARKETING IS A LIKELY WINNER IN THE
VALUE DECADE MR END SAYS

THE BIG NEW PRESENCE OF COURSE IS HOMESHOPPING BY TELEVISION NOW ONLY
25 BILLION AGAINST NEARLY 55 BILLION BY MAIL CATALOGS BUT GAINING AND
IF ELECTRONIC SALES ARE THE BIG GROWTH FIELD MR END SUGGESTS LANDS' END
IS READIER THAN MOST IT IS USED TO TAKING ORDERS IN A WAY THAT STORES ARE
NOT AND IT'S TRYING ON SIX DIGITAL VENUES FOR DISPLAYING GOODS RESULTS
THERE ARE NOT EARTHSHATTERING TO DATE MR END ADMITS

THE NEW MARKETING MODE POSES TWO BIG CHALLENGES AS LANDS' END SEES IT THE
FIRST IS GOING FROM FLAT PRINT TO MOTION IN ITS PRESENTATION IT HAS DABBLED
IN TELEVISION ADS BUT INFOMERCIALS OR TRUE INTERACTIVE SELLING IS ANOTHER
MATTER PUTTING TOGETHER 30 MINUTES IS MORE LIKE A DOCUMENTARY COMPARED TO
30 SECONDS IT REQUIRES MORE PROJECTION OF A STORY A MESSAGE MR END
SAYS

THE SECOND DIFFICULTY INVOLVES RETRIEVABLE DATABASE CATALOGS THE WORRY
HERE IS HOW TO TRIGGER A RESPONSE FROM THE TARGET CONSUMER A FULLCOLOR
MAILING IS DIFFICULT TO IGNORE BUT MR END WONDERS HOW TO PROMPT THE
TECHNOPHILE TO CALL UP THAT CRITICAL FIRST LOOK

THE TELECOMMUNICATIONS AGE ALREADY HAS HELPED MAILORDER ENORMOUSLY THE
ONSET OF WIDESPREAD INSTANT CREDIT VIA VISA MASTERCARD ETC AND THE 800
NUMBER REVOLUTIONIZED THE BUSINESS ADD OVERNIGHT DELIVERY SERVICES AND THE
WAIT TO TOUCH THE PRODUCT HAS VIRTUALLY VANISHED

A MORE CONTENTIOUS FACTOR IS INCREASING STATE SALES TAXES WHICH MOST
MAILORDER CUSTOMERS AVOID LIKE MOST IN THE INDUSTRY MR END DISCOUNTS THE
EFFECT THESE LEVIES HAVE PARTICULARLY AFTER HIGHER DELIVERY COSTS NEGATE
MUCH OF THE SAVINGS FROM BUYING TAXFREE CATALOG OPERATIONS ARE ALWAYS
FEARFUL THAT CONGRESS WILL ACCEDE TO STATE REQUESTS FOR NATIONWIDE
COLLECTION BUT THE AMOUNTS INVOLVED ARE NOT TRIVIAL WHEN SEEN
CUMULATIVELY BASED ON A PROJECTION FROM 1988 FIGURES CALIFORNIANS WHO PAY
MORE THAN 8 SALES TAX IN SOME JURISDICTIONS ARE SAVING 500 MILLION A YEAR
BUYING BY MAIL AND FOR SOME INDIVIDUAL PURCHASES SUCH AS JEWELRY OR
COMPUTERS THE DIFFERENCE IS SUBSTANTIAL A 1990 ANALYSIS IN THE JOURNAL OF
RETAILING FOUND THE ABSENCE OF A SALES TAX QUADRUPLES CATALOG MARKET SHARES
FOR EXPENSIVE ITEMS

MR END MAINTAINS THAT VALUE PRICING IS WHAT MATTERS HE CAN SELL A 12
WHOLESALE SHIRT AT 23 AND MAKE HIS MARGIN WHILE A RETAIL STORE MIGHT PRICE
IT AT 45 WHAT HAPPENED OVER THE PAST FIVE YEARS HOWEVER IS THAT THOSE
SHOPS WERE CUTTING THAT FIGURE DEEPLY AND REGULARLY

THAT BLOODLETTING IN THE MALLS COMBINED WITH THE RECESSION AND THE BIG
POSTAL INCREASES THAT BELIEVE IT OR NOT PARED THE NUMBER OF CATALOGS EACH
MAILORDER SELLER COULD AFFORD TO SEND PROBABLY ACCOUNTED FOR THE PAUSE
THAT THE LANDS' ENDS OF AMERICA ENDURED IN A SENSE THEN THE FATES OF THE
STORES AND THE DIRECT MERCHANTS MAY BE LINKED ANY COMEBACK BY THE
DEPARTMENT CHAINS ALONG WITH A THINNING OF THEIR RANKS COULD RESTRAIN THE
REDTAGGING OF MERCHANDISE AND KEEP THE PRICECONSCIOUS COMING TO
DODGEVILLE

IN THE MEANTIME MR END WILL SHORE UP INVENTORY LOOK FOR A WAY TO SELL IN
BITS AND BYTES AND MAYBE JUST MAYBE HOPE THE TAXHUNGRY STATES WILL
KEEP INCHING THEIR SALES LEVIES TOWARD THE DOUBLE DIGITS

LAST WEEK I PUT THE NUMBER OF US CONSTRUCTIONTRADE JOBS AT 38 MILLION
BETTER NUMBERS ARRIVED FROM THE BUREAU OF LABOR STATISTICS MAKE IT 43
MILLION NOT COUNTING SUPERVISORS ALL THE MORE REASON TO EXPECT BIG
EMPLOYMENT GAINS IF THE UNION LOCKHOLD ON TRAINING CAN BE BROKEN
9401180089 940118 INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD
L HOLMAN

VENEZUELA DECIDED TO REVISE ITS NEW UNPOPULAR VALUEADDED TAX WHICH COULD
HAVE RAISED 2 BILLION THIS YEAR AND ELIMINATED HALF THE GOVERNMENT DEFICIT

SHOPKEEPERS NOW MUST GET GOVERNMENT PERMISSION TO COLLECT THE VAT
EFFECTIVELY SUSPENDING IT AT THE RETAIL LEVEL WHERE IT WAS INTRODUCED JAN
1 CRITICS SAID STORES USED THE TAX AS AN EXCUSE FOR BIG PRICE INCREASES
THE GOVERNMENT WANTS TO ENSURE VAT REVENUE GETS TO THE TREASURY VENEZUELA
ADOPTED THE INDIRECT SALES TAX PAID ON PRODUCTS AND SERVICES AT EACH STAGE
OF OUTPUT OR DISTRIBUTION TO WIDEN THE TAX BASE AS OIL REVENUE SHRINKS

THE VAT WAS APPLIED OCT 1 AT THE WHOLESALE LEVEL WHERE IT STAYS IN FORCE

THE REVISION MOVE FOLLOWED THE BOLIVAR STATE GOVERNOR'S REFUSAL TO COLLECT
WHAT HE TERMED AN UNJUST AND BADLY IMPLEMENTED VAT AND HIS PLEA TO WAIT
UNTIL PRESIDENT RAFAEL CALDERA TAKES OFFICE FEB 2 MR CALDERA FAVORS
REPLACING THE VAT WITH HIGHER TAXES ON THE RICH

BRITISH GAS SETTLED FOR 12 MILLION A CASE FILED BY 16 WOMEN WHO CLAIMED
BIAS IN BEING FORCED TO RETIRE IN 1986 AT AGE 60 WHILE MEN WERE ALLOWED TO
WORK UNTIL THEY WERE 65 THE WOMEN WHO HAD HELD CLERICAL OR SALES POSTS AT
THE NATIONAL GAS SUPPLIER HAD COMPLAINED TO THE EUROPEAN COURT OF JUSTICE
THE EUROPEAN UNION'S HIGHEST COURT UNISON THE HEALTH AND PUBLIC SERVICES
UNION SAID THE OUTOFCOURT PACT CLEARED THE WAY FOR MORE THAN 400 OTHER
UNION MEMBERS TO MAKE SIMILAR SEXDISCRIMINATION CLAIMS

CONSUMPTION OF ALCOHOLIC BEVERAGES IN AUSTRALIA BETWEEN 1980 AND 1991 FELL
20 DOUBLE THE WORLDWIDE DROP OF 10 ACCORDING TO THE 31ST WORLD DRINK
TRENDS SURVEY THE DISTILLED SPIRITS INDUSTRY COUNCIL OF AUSTRALIA SAID WE
ARE PORTRAYED AS A COUNTRY OF BEERSWILLING HEAVY DRINKERS YET THE FIGURES
SHOW THAT AUSTRALIANS ARE MODERATE CONSUMERS OF ALCOHOL AUSTRALIA RANKED
17TH IN WORLD ALCOHOL CONSUMPTION THE SURVEY FOUND GERMANS DRANK THE MOST
BEER 143 QUARTS A PERSON IN 1991 WITH AUSTRALIANS 11TH AT 108 QUARTS DOWN
FROM THEIR 1365QUART PEAK IN 197475

CHINESE STATEOWNED ENTERPRISES' EARNINGS AND EFFICIENCY WERE POOR LAST
YEAR THE OFFICIAL CHINA DAILY SAID IN THE FIRST 11 MONTHS 34 OF THE
FIRMS WERE UNPROFITABLE COMPARED WITH 25 OF FOREIGNFUNDED AND PRIVATELY
OWNED INDUSTRIES AND 155 OF INDUSTRIAL COLLECTIVES IN NOVEMBER FOR EVERY
100 YUAN 1150 SPENT ON PRODUCTION STATE FACTORIES GENERATED ONLY 467
YUAN IN PROFITS UNDER MARKET REFORMS BEIJING HAS REDUCED SUBSIDIES TO
STATE FIRMS IN A BID TO MAKE THEM PROFITABLE

THE EUROPEAN UNION AND SEVEN EAST EUROPEAN NATIONS AGREED TO ALIGN THE
EASTERN GOVERNMENTS' STATISTICS WITH NORMS OF THE EU THE FORMER EUROPEAN
COMMUNITY THE 12MEMBER EU WILL HELP STATISTICS AGENCIES IN BULGARIA THE
CZECH REPUBLIC HUNGARY POLAND ROMANIA SLOVAKIA AND SLOVENIA DEVELOP
THEIR DATAGATHERING SYSTEMS AND TRAIN PERSONNEL THE EU CONSIDERS ACCURATE
AND POLITICALLY IMPARTIAL DATA ESSENTIAL TO WINNING PUBLIC CONFIDENCE FOR
REFORMS AND BUILDING DEMOCRACIES

HONG KONG'S GROWING TRADE TIES WITH CHINA HAVE CAUSED A SURGE IN CORRUPTION
THE BRITISH COLONY'S ANTIGRAFT CHIEF TOLD THE AMERICAN CHAMBER OF COMMERCE
LAST YEAR CASES OF ALLEGED CORRUPTION IN THE PRIVATE SECTOR JUMPED 52 AND
INCLUDING THOSE IN THE PUBLIC SECTOR INCREASED 44 THIS WAS ATTRIBUTED TO
MORE WILLINGNESS TO REPORT CORRUPTION AND EAGERNESS TO PROFIT FROM BOOMING
TRADE BEFORE CHINA ASSUMES SOVEREIGNTY IN 1997 AN ANTIGRAFT AGENCY SURVEY
FOUND THAT 70 OF HONG KONG COMPANIES ROUTINELY GAVE GIFTS TO OFFICIALS IN
CHINA WHICH IS CAMPAIGNING TO ELIMINATE BRIBERY AND OTHER CORRUPT
PRACTICES

TURKMENISTAN'S PRESIDENT VOWED TO SPEED UP CAPITALIST REFORMS SAYING
PRIVATIZATIONS MUST BECOME THE BASIS FOR THE FORMER SOVIET REPUBLIC'S
ECONOMY

FOLLOWING HIS WEEKEND REFERENDUM VICTORY EXTENDING HIS TERM FOR FIVE YEARS
UNTIL 2002 SAPARMURAT NIYAZOV ALSO PREDICTED TURKMENISTAN'S GROSS NATIONAL
PRODUCT WOULD TRIPLE BY 2000

SINCE THE USSR COLLAPSED THE ECONOMY OF TURKMENISTAN A DESERT COUNTRY
OF 42 MILLION PEOPLE BORDERING IRAN HAS BOOMED PACED BY NATURALGAS
EXPORTS

THE REFORM PLAN CALLS FOR SELLING OFF ALL SMALL TRADE AND SERVICE FIRMS BY
THE END OF NEXT YEAR LESS THAN 10 OF THEM ARE IN PRIVATE HANDS NOW A
SMALL STOCK EXCHANGE IS TO BE SET UP IN THE CAPITAL OF ASHGABAT IN FEBRUARY
OR MARCH TO HELP PRIVATIZE LARGE ENTERPRISES AND BIG MANUFACTURERS MAY
SWITCH TO JOINT STOCK OWNERSHIP THIS YEAR BANKS WILL BE OPENED TO FOREIGN
JOINT VENTURES AND BY 1996 SOME BANKS ARE TO BE FREED OF STATE CONTROL

PARIS NAMED A STREET IN THE 15TH DISTRICT ALONG THE SEINE RIVER AFTER ERNEST
HEMINGWAY HONORING THE AMERICAN WHO WROTE HIS FIRST NOVELS IN THE FRENCH
CAPITAL IN THE 1920S   COLLECTIVE BARGAINING IN SPAIN LAST YEAR
PRODUCED A 58 AVERAGE WAGE INCREASE MOSTLY OFFSET BY 49 ANNUAL
INFLATION   MOSCOW WILL CHARGE FOREIGN TOURISTS IN THE RUSSIAN CAPITAL
A DAILY TARIFF OF 1 PAYABLE IN HARD CURRENCY THE ITARTASS NEWS AGENCY
SAID IT DIDN'T SAY HOW THE TAX WILL BE COLLECTED THE LEVY WON'T APPLY TO
BUSINESS VISITORS OR CITIZENS OF MOST FORMER SOVIET REPUBLICS 9401180087
940118 CHINA AGREES TO CURB GROWTH IN EXPORTS OF TEXTILES TO US
AVERTING TRADE WAR  BY WALL STREET JOURNAL REPORTERS KATHY CHEN IN
BEIJING AND ASRA Q NOMANI IN WASHINGTON

CHINA BOWED TO US PRESSURE AND AGREED TO LIMIT THE GROWTH IN ITS TEXTILE
EXPORTS TO THE US OVER THE NEXT THREE YEARS

ALTHOUGH OTHER DISPUTES SUCH AS ON HUMANRIGHTS ISSUES REMAIN THE
TEXTILE ACCORD AVERTED A TRADE WAR AND COULD MAKE IT EASIER FOR THE US TO
REWARD CHINA WITH BROADER TRADE BENEFITS LATER SPECIFICALLY IT BOOSTS
CHINA'S CHANCES OF WINNING AN EXTENSION OF FAVORED TRADE STATUS AND GAINING
ENTRY INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GENEVABASED WORLD
ORGANIZATION THAT SETS RULES FOR WORLD TRADE

US TRADE REPRESENTATIVE MICKEY KANTOR SAID THERE WAS NO LINKAGE
WHATSOEVER BETWEEN THE TEXTILE PACT AND OTHER TRADE BENEFITS BUT HE SAID
THE AGREEMENT IS THE BEGINNING OF A HEALTHIER AND MORE PRODUCTIVE
RELATIONSHIP

THE US BELIEVES CHINA HAS SKIRTED QUOTAS BY SHIPPING TEXTILES THROUGH
THIRD COUNTRIES AND PUTTING THOSE COUNTRIES' LABELS ON THE PRODUCTS TO
COMPENSATE THE NEW AGREEMENT WILL FREEZE CHINA'S QUOTA FOR 1994 AT 1993
LEVELS AND LIMIT GROWTH TO 1 IN EACH OF THE NEXT TWO YEARS

A FIVEYEAR PACT THAT EXPIRED AT THE END OF LAST YEAR HAD ALLOWED FOR 44
ANNUAL INCREASES THE NEW AGREEMENT MEANS A REDUCTION OF 700 MILLION OR
13 IN WHAT CHINA'S TOTAL QUOTA WOULD HAVE BEEN FOR THE THREE YEARS HAD
THE PREVIOUS GROWTH RATE BEEN ALLOWED STILL THAT REDUCTION IS CONSIDERABLY
SMALLER THAN THE 25 TO 35 CUT THAT WASHINGTON THREATENED TO IMPOSE IF THE
TWO SIDES FAILED TO REACH A COMPROMISE BY YESTERDAY

WE WOULD LIKE TO SEE THE CHINESE GOVERNMENT BEGIN TO ACT IN TRADE AND OTHER
AREAS AS PART OF A WORLD COMMUNITY IN A WAY THAT WE WOULD ALL FIND TO BE
APPROPRIATE AND HELPFUL SAID MR KANTOR THE US TRADE REPRESENTATIVE
THIS IS A SITUATION IN WHICH THEY HAVE DONE SO  

THE NEW PACT PROVIDES THAT WASHINGTON COULD CUT CHINA'S QUOTA BY THREE TIMES
THE AMOUNT OF ANY FUTURE ILLEGAL SHIPMENTS THIS OPTION WOULD TAKE EFFECT
ONLY AFTER TWO INFRINGEMENTS BY CHINA AND ANY PENALTIES IMPOSED WOULD BE
SPREAD OUT OVER THE THREEYEAR AGREEMENT PERIOD THE US SAYS CHINESE
COMPANIES TRANSSHIP OR EXPORT THROUGH THIRD COUNTRIES ABOUT 2 BILLION OF
GOODS TO THE US EACH YEAR

CHINA ALSO AGREED TO LET US GOVERNMENT OFFICIALS CONDUCT SURPRISE
INSPECTIONS OF CHINESE COMPANIES SUSPECTED OF ENGAGING IN ILLEGAL
TRANSSHIPMENT CHINESE OFFICIALS COULD ACCOMPANY SUCH INSPECTION GROUPS THE
COMPANIES COULD UNDER LOCAL LAW DENY THE GROUPS ENTRY IN THE ABSENCE OF A
SEARCH WARRANT FROM CHINESE AUTHORITIES

MR KANTOR INSISTED THAT THE NEW RESTRICTIONS WOULDN'T HAVE A SIGNIFICANT
IMPACT ON US CONSUMERS AND WERE NECESSARY TO PROTECT JOBS IN THE US THE
ASSERTION COMES AMID CRITICISM THAT CONSUMERS PAY HIGHER PRICES BECAUSE OF
US TARIFFS AND QUOTAS PROTECTING THE TEXTILE AND APPAREL INDUSTRY THE
INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON RESEARCH GROUP CALLED
TEXTILE TRADE BARRIERS THE MOUNT EVEREST OF US TRADE PROTECTION IN A
RECENT STUDY IT SAID THEY COST US CONSUMERS 24 BILLION A YEAR

THE TEXTILE AGREEMENT COMES JUST BEFORE A VISIT TOMORROW TO BEIJING BY US
TREASURY SECRETARY LLOYD BENTSEN WHO WOULD BE THE HIGHESTRANKING OFFICIAL
OF THE CLINTON ADMINISTRATION TO VISIT CHINA CHINA'S FOREIGNTRADE
MINISTER WU YI SAID THE TEXTILE AGREEMENT CAN CREATE A VERY POSITIVE
ATMOSPHERE FOR THE UPCOMING VISIT OF SECRETARY BENTSEN

IN A SECOND DOCUMENT THE TWO SIDES AGREED TO LIMIT THE GROWTH IN CHINESE
EXPORTS OF SILK TO THE US TO 1 EACH YEAR US OFFICIALS SAID THIS WAS
THE FIRST TIME THE TWO COUNTRIES HAVE SIGNED AN AGREEMENT GOVERNING SILK
APPAREL FOLLOWING THE RAPID INCREASE OF CHEAP SILK EXPORTS BY CHINA TO THE
US LAST YEAR CHINA EXPORTED ABOUT 22 BILLION IN SILK GARMENTS TO THE
US COMPARED WITH TOTAL TEXTILE EXPORTS TO THE US OF ABOUT 72 BILLION

BOTH SIDES SHOWED RELIEF AND EXUBERANCE AT A SIGNING CEREMONY FOR THE
TEXTILE AGREEMENT LATE YESTERDAY IN BEIJING THE THREE DAYS OF NEGOTIATIONS
HAD INCLUDED TALKS STRETCHING PAST MIDNIGHT THE US NEGOTIATORS NEARLY
WALKED OUT YESTERDAY AFTERNOON JUST A FEW HOURS BEFORE THEY WERE SCHEDULED
TO BOARD A PLANE AND AFTER REPORTERS HAD ALREADY BEEN GATHERED FOR THE
SIGNING CEREMONY AFTER THE SIGNING MS WU PUT HER ARM AROUND THE CHIEF
US NEGOTIATOR JENNIFER HILLMAN AND THE TWO CLINKED CHAMPAGNE GLASSES
COOPERATION HAS THE BEST FUTURE MS WU SAID LAUGHING

THE CHINESE PLACE GREAT IMPORTANCE ON MR BENTSEN'S VISIT THE US WILL
CONSIDER LATER THIS YEAR WHETHER TO RENEW CHINA'S MOST FAVORED NATION
STATUS WHICH ALLOWS BEIJING TO SHIP PRODUCTS INTO THE US AT THE LOWEST
TARIFF LEVELS THE US IMPOSES MOREOVER BY WINNING ENTRY INTO GATT CHINA
WOULD GAIN SIGNIFICANT BENEFITS FROM A SWEEPING TRADE AGREEMENT THAT 117
MEMBERS OF THE GROUP COMPLETED LAST MONTH REDUCING TRADE BARRIERS AROUND
THE WORLD SUCH MEMBERSHIP ALSO WOULD BOOST CHINA'S STATUS AS A PLAYER IN
THE WORLD ECONOMY

BUT SIGNIFICANT TRADE DISPUTES WITH THE US CONTINUE TO SIMMER FOR ONE
THING THE US IS THREATENING TO CRACK DOWN ON CHINA FOR NOT PROTECTING
COPYRIGHTS NEGOTIATIONS OVER THAT DISPUTE ARE SUPPOSED TO START LATER THIS
MONTH THE US WANTS CHINA TO AGREE TO AN ENFORCEMENT PLAN BY MIDMARCH AND
IS THREATENING TO INITIATE TRADE SANCTIONS IF CHINA DOESN'T COMPLY
9401180086 940118 BUSINESS BRIEF GUPTA CORP EARNINGS MORE THAN
TRIPLED IN 4TH QUARTER STOCK GAINS

GUPTA CORP IN MENLO PARK CALIF SAID IT EARNED 299 MILLION OR 23 CENTS
A SHARE IN THE FOURTH QUARTER MORE THAN TRIPLE THE YEARAGO LEVEL AS
SALES ROSE SHARPLY

NET INCOME FOR THE YEAREARLIER PERIOD WAS 961000 OR NINE CENTS A SHARE

QUARTERLY SALES ROSE 64 TO 18 MILLION FROM 11 MILLION A YEAR EARLIER

THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS FOR EARNINGS OF ABOUT 19 CENTS A
SHARE AND THE FASTGROWING SOFTWARE FIRM'S STOCK ROSE 115 OR 2125 TO
20625 IN TRADING ON THE NASDAQ STOCK MARKET 9401180085 940118 REVIEW &
OUTLOOK EDITORIAL AN INNOCENT ABROAD

WE'VE BEEN FOLLOWING BILL CLINTON'S REMARKABLE TOUR ACROSS THE CAPITALS OF
EUROPE DELIVERING ELOQUENT SPEECHES IN BRUSSELS CAPTURING THE FROZEN
HANDS AND HEARTS OF MUSCOVITES UNBURDENING UKRAINE OF ITS NUCLEAR MISSILES
BONDING WITH TED KOPPEL HOWEVER IT WASN'T UNTIL WE AWOKE YESTERDAY MORNING
TO READ THAT MR CLINTON IN A FIVEHOUR TALK CONVINCED HAFEZ ASSAD OF
SYRIA TO GIVE PEACE A CHANCE THAT WE STARTED TO LOOK FOR SIGNS OF TINKERBELL
DUST

AFTER TALKING TO MR CLINTON PRESIDENT ASSAD EMERGED SMILING LIKE THE CAT
WHO'D SWALLOWED THE CANARY TO DECLARE IN HONOR WE FOUGHT IN HONOR WE
NEGOTIATE AND IN HONOR WE SHALL MAKE PEACE WITH THIS TRIUMPH SECURED AND
PRESS ACCOUNTS ANNOUNCING THAT THE BURDEN NOW LAY UPON ISRAEL MR CLINTON
FLEW HOME

NO DOUBT ANYTHING IS POSSIBLE IN OUR SURPRISING WORLD AND WE DON'T WANT TO
WHOLLY DISMISS THE POSSIBILITY THAT PRESIDENT CLINTON DID IN FACT BAPTIZE
HAFEZ ASSAD INTO THE COMMUNITY OF CIVILIZED NATIONS WE COULD NOT HELP BUT
NOTICE HOWEVER THAT THIS REMARKABLE BREAKTHROUGH WAS SOMETHING OF A PIECE
WITH SIMILAR SUCH REMARKABLE BREAKTHROUGHS ON THE PRESIDENT'S TRIP ABROAD

FOR INSTANCE WE HAVE IN OUR MIND'S EYE THE PICTURE OF UKRAINE'S VOLUBLE BUT
CANNY PRESIDENT LEONID KRAVCHUK CHEERFULLY ALLOWING HIMSELF TO BE WON OVER
TO MR CLINTON'S VIEW THAT UKRAINE SHOULD SHIP ITS NUCLEAR WARHEADS INTO
RUSSIA MR CLINTON DESCRIBED THIS COMMITMENT AS A HISTORIC BREAKTHROUGH
AND IT MADE FRONT PAGES EVERYWHERE

IT DEVELOPS THAT MR KRAVCHUK COULD MERRILY ACCEDE TO THE PLAN DEVISED BY
THE STATE DEPARTMENT'S STROBE TALBOTT BECAUSE THE FINAL CALL ISN'T MR
KRAVCHUK'S TO MAKE UKRAINE'S CABINET AND PARLIAMENT MUST RATIFY THE
AGREEMENT AND IN THE PAST HAVE BALKED AT EXPOSING THE COUNTRY'S SECURITY TO
RUSSIAN GOODWILL BUT AS WITH ISRAEL CLINTON AIDES BELIEVE THE DEAL SHIFTS
THE BURDEN ONTO UKRAINE'S PARLIAMENT

DAYS LATER MR CLINTON WAS IN MOSCOW WHERE PRESIDENT YELTSIN CONFIDENTLY
ASSURED HIS AMERICAN VISITOR THAT THE RUSSIAN REFORM MOVEMENT WAS ON TRACK
NO SOONER HAD MR CLINTON LIFTED OFF FOR GENEVA WHEN YEGOR GAIDAR THE
ARCHITECT OF MR YELTSIN'S ECONOMIC REFORMS HANDED IN HIS RESIGNATION

WE CAN'T HELP BUT MARVEL AND WONDER AT THE AIR OF DETACHED CALM WITH
WHICH MR CLINTON PASSES THROUGH SUCH EVENTS DURING THE YEARS OF THE COLD
WAR ONE COULD WORRY THAT A CREDULOUS WESTERN LEADER WOULD INVEST TOO MUCH
FAITH IN THE ASSURANCES OF AN ASSAD OR SOMEONE LIKE HIM A LONG CONSENSUS
AGAINST NAIVETE IN DOING DANGEROUS DEALS GUARDED AGAINST SUCH INSTINCTS

NOW IN THE YEARS AFTER THE COLD WAR NEW TECHNIQUES ARE EVOLVING MR
CLINTON'S CONTRIBUTION MIGHT BE CALLED THE POWER OF POSITIVE ASSERTION
ASSERT PEACE OR SOME OTHER SUCH HISTORIC BREAKTHROUGH AND LET THE LEADERS
OF AN ISRAEL OR UKRAINE BE SEEN AS STANDING IN THE WAY

YESTERDAY ISRAELI OFFICIALS SUGGESTED A VERY CONTEMPORARY RESPONSE TO THIS
PRESSURE THEY SAID ANY AGREEMENT CONVEYING THE GOLAN HEIGHTS TO MR ASSAD
MOST LIKELY WOULD HAVE TO BE SUBMITTED TO A POPULAR REFERENDUM UKRAINIANS
WILL SELECT A NEW PARLIAMENT IN MARCH WITH MR CLINTON'S NUCLEARWARHEAD
BREAKTHROUGH NO DOUBT AT THE CENTER OF IT

ON BALANCE IT IS REASSURING MR CLINTON GETS HIS FOREIGN TRIUMPHS BORNE
HOME TO A DOMESTIC AUDIENCE LIVING ON A 24HOUR NEWS SCHEDULE BUT THE
PEOPLE WHO WOULD LIVE WITH THOSE TRIUMPHS HERE THE ISRAELIS AND UKRAINIANS
GET TO VOTE THEIR OWN BELIEFS ON NATIONAL SECURITY 9401180084 940118
ONTARIO HYDRO SAYS '93 CHARGES TO TOP FORECAST  BY SUZANNE MCGEE
 STAFF REPORTER OF THE WALL STREET JOURNAL

TORONTO ONTARIO HYDRO NORTH AMERICA'S SECONDLARGEST UTILITY SAID IT
EXPECTS TO RECORD CHARGES OF AS MUCH AS 35 BILLION CANADIAN DOLLARS
US264 BILLION AGAINST ITS 1993 NET INCOME UP FROM EARLIER FORECASTS
THAT THEY WOULD REACH C16 BILLION

THE EXACT SIZE OF THE CHARGE WON'T BE DISCLOSED UNTIL FEBRUARY WHEN THE
STATEOWNED UTILITY EXPECTS TO COMPLETE A STUDY OF ITS SURPLUS GENERATING
CAPACITY SOME OF THE CHARGES WILL BE RELATED TO THE SALE AND/OR CLOSURE OF
SOME GENERATING CAPACITY UTILITY SOURCES SAID

ABOUT C600 MILLION OF THE LOSS WILL COME FROM SEVERANCE COSTS AS HYDRO
SLASHES JOBS THROUGHOUT THE ORGANIZATION WITH THE REMAINDER BEING
WRITEDOWNS ON ASSETS AND CHARGES RELATED TO THE CANCELLATION OF URANIUM
SUPPLY CONTRACTS AND ENERGY PURCHASES FROM OTHER PROVINCIAL UTILITIES IN
CANADA

ELEANOR CLITHEROE CHIEF FINANCIAL OFFICER OF THE UTILITY SAID THE
WRITEOFFS WILL SIGNIFICANTLY IMPROVE HYDRO'S FUTURE NETINCOME PICTURE
THE UTILITY SAID IT EXPECTS TO REPORT A PROFIT OF C600 MILLION IN 1994

MS CLITHEROE SAID THE UTILITY WON'T HAVE AN OPERATING LOSS FOR 1993
DESPITE EARLIER FORECASTS OF A C200 MILLION LOSS AS A RESULT OF FALLING
DEMAND FOR ELECTRICITY

SHE SAID SHE EXPECTS THE UTILITY TO POST NET INCOME OF C600 MILLION IN
1994 RISING TO C885 MILLION BY 1996 THESE FORECASTS ARE BASED ON THERE
BEING NO INCREASE IN DEMAND FOR HYDRO'S ELECTRICITY

OF THE TOTAL ESTIMATED CHARGES AND WRITEOFFS C105 BILLION IS RELATED TO
RESTRUCTURING INCLUDING STAFF CUTS THE REMAINDER RELATES TO ASSET
WRITEDOWNS INCLUDING C595 MILLION TO MARK THE COST OF HYDRO'S NUCLEAR
FUEL INVENTORY TO MARKET THE CHARGES RELATED TO SURPLUS CAPACITY WILL RANGE
FROM C40 MILLION TO C650 MILLION

MS CLITHEROE SAID THE CHARGES DON'T INCLUDE AN AMOUNT YET TO BE AWARDED TO
DENISON MINES LTD A TORONTOBASED URANIUMMINING CONCERN RELATED TO
CANCELED SUPPLY CONTRACTS SHE SAID THAT AMOUNT COULD RANGE FROM C40
MILLION TO AS MUCH AS C400 MILLION BUT THAT THE UTILITY ANTICIPATES THE
FIGURE WILL BE AT THE LOWER END OF THAT RANGE ARBITRATORS ARE EXPECTED TO
REACH THEIR DECISION BY SPRING SHE ADDED

HYDRO HAS RECEIVED SOME EXPRESSIONS OF INTEREST IN PURCHASING SOME
GENERATING ASSETS MS CLITHEROE SAID BUT SHE NOTED THAT IT IS TOO EARLY TO
SAY WHETHER THESE ARE CONCRETE ENOUGH TO PURSUE

MANY QUESTIONS STILL SURROUND THE PROSPECTS OF HYDRO STRUGGLING TO DEAL
WITH A DEBT LOAD OF ABOUT C34 BILLION AND A DEBTTOEQUITY RATIO WHICH
WILL HIT 90 IN THE WAKE OF THE WRITEDOWNS THE UTILITY'S CRITICS
ANTICIPATE ASSET SALES AS WELL AS MORE WRITEDOWNS IN THE COMING YEARS

THERE ARE A LOT OF ASSETS PARTICULARLY ON THE NUCLEARGENERATION FRONT
THAT ARE STILL WILDLY OVERVALUED SAID TOM ADAMS AN ANALYST AT ENERGY
PROBE A TORONTOBASED LOBBY GROUP

MS CLITHEROE DECLINED TO SPECULATE ON THE LIKELIHOOD OF ALL OR PART OF
HYDRO BEING PRIVATIZED IN THE COMING MONTHS NOTING THAT THIS WOULD REQUIRE
SOME PUBLIC DEBATE AND A DECISION BY ONTARIO'S GOVERNMENT 9401180083
940118 PACIFIC TELESIS UNIT IN ITALY

WALNUT CREEK CALIF PACIFIC TELESIS INTERNATIONAL SAID ITS PROTO ITALIA
CONSORTIUM FILED A PREQUALIFICATION APPLICATION TO OPERATE ITALY'S SECOND
DIGITAL CELLULAR NETWORK

COMPANIES WHO PASS THIS STAGE CAN THEN FORMALLY APPLY FOR THE CELLULAR
LICENSE A FINAL DECISION ON THE OPERATOR IS EXPECTED BY THE END OF THE
YEAR THE GOVERNMENTOWNED TELEPHONE OPERATOR SOCIETA ITALIANA PER
L'ESERCIZIO TELEFONI IS CURRENTLY THE ONLY COMPANY PROVIDING CELLULAR
SERVICE

PACIFIC TELESIS A SUBSIDIARY OF PACIFIC TELESIS GROUP A SAN FRANCISCO
TELECOMMUNICATIONS COMPANY OWNS A 33 INTEREST IN THE CONSORTIUM ALONG WITH
GERMAN AND ITALIAN INVESTORS 9401180082 940118 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 CLOSED FOR HOLIDAY

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

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 588 JAPAN 3 SWITZERLAND
750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE MONDAY JANUARY 10 1994 AUCTION OF
SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN
UNITS OF 10000 TO 1 MILLION 302 13 WEEKS 318 26 WEEKS

MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9401180081 940118 LEISURE & ARTS BOOKSHELF BLACKS' DREAM UNFULFILLED
  BY SAM FULWOOD III

NEARLY TWO GENERATIONS FROM THE SUPREME COURT'S LANDMARK 1954 BROWN VS
BOARD OF EDUCATION DECISION AND 30 YEARS AFTER MARTIN LUTHER KING'S 1963 I
HAVE A DREAM SPEECH A CROP OF WELLSPOKEN AFFLUENT HIGHLY EDUCATED AND
PROFESSIONALLY ACCOMPLISHED BLACK AMERICANS BLOOM FULLFLOWER ACROSS THE
NATIONAL LANDSCAPE

IN THE RAGE OF A PRIVILEGED CLASS HARPERCOLLINS 192 PAGES 20 ELLIS
COSE DESCRIBES HOW THIS GROUP IS FINDING THAT INTEGRATION IS NOT WORTH ITS
COST IN SELFESTEEM MANY AFFLUENT BLACKS MR COSE ARGUES ARE ENGAGING IN
PSYCHOLOGICAL SEGREGATION FROM WHITE MAINSTREAM AMERICA

MR COSE A CONTRIBUTING EDITOR AND ESSAYIST FOR NEWSWEEK MAGAZINE AND A
BLACK MAN HIMSELF DETAILS THE OUTRAGES FACED BY MIDDLECLASS BLACKS BECAUSE
OF THEIR SKIN COLOR HIS BOOK IS A CONFESSIONAL CATALOG OF FRUSTRATIONS AND
ANGER THAT MAY SHOCK SOME WHITE AMERICANS

I REMEMBER FOR EXAMPLE HOW SOME WHITES WERE SHOCKED TO HEAR ARTHUR ASHE
TELL AN INTERVIEWER THAT FIGHTING AGAINST RACISM WAS MORE DIFFICULT THAN HIS
FATAL STRUGGLE AGAINST AIDS MANY WHITES VIEW SUCH OMNIPRESENT FIGURES AS
BRYANT GUMBEL AND COLIN POWELL AS POSITIVE PROOF OF THE TRANSCENDENCE OF THE
NATION'S RACIST PAST

SO WHY ARE THESE BLACKS ANGRY MR COSE ATTRIBUTES THE RAGE TO THE HURT
PRIVILEGED BLACKS SUFFERED AS THEY TRIED AND FAILED TO FIT IN AMONG WHITE
PEOPLE WHO OFTEN DON'T TRY PARTICULARLY HARD TO DISTINGUISH BETWEEN A MEDIA
IMAGE OF A BLACK HOOLIGAN AND A COLLEGEEDUCATED BLACK STRIVER THE
RESULTING RAGE IS HIDDEN BY THE MASKS OF ACHIEVEMENT WORN BY PROFESSIONAL
BLACK PEOPLE WHO DO THEIR JOBS WITHOUT GIVING OFF A HINT OF THE ISOLATION
THEY FEEL AMID THEIR WHITE COWORKERS

INTERESTINGLY A GRACIOUS PLENTY OF THE INTERVIEW SUBJECTS COME FROM
HARVARD YALE AND OTHER IVY LEAGUE BASTIONS IMBEDDED IN MR COSE'S SUBJECTS
IS AN IMPLICIT ARGUMENT THAT IF A BLACK HARVARDTRAINED DOCTORLAWYER HAS A
RACE PROBLEM THEN IT MUST BE A SERIOUS PROBLEM

WE LISTEN FOR INSTANCE AS AN EMINENTLY SUCCESSFUL CORPORATE LAWYER DUMPS
A LIFETIME OF FRUSTRATION ON THE AUTHOR THE LAWYER RECALLS HIS HUMILIATION
WHEN A JUNIOR SUBORDINATE REFUSED TO STEP ASIDE AS THEY BOTH ENTERED THEIR
OFFICE BUILDING ONE MORNING THE BLACK MAN WAS REDUCED TO SPITTING OUT HIS
NAME AND IDENTIFYING HIMSELF AS A PARTNER BEFORE GAINING ENTRY

BECAUSE OF HIS COLOR HE FELT HE HAD A RIGHT TO CHECK ME OUT THE LAWYER
SAYS HERE I AM A BLACK MAN WHO HAS DONE ALL THE THINGS I WAS SUPPOSED TO
DO

THEN THERE IS THE STORY OF THE NEW YORK TIMES REPORTER RUSHING TO CATCH A
PLANE ONLY TO BE DETAINED BY AN OVERZEALOUS WHITE SECURITY OFFICIAL WHO HAS
JUMPED TO THE ERRONEOUS CONCLUSION THAT SHE CAN ONLY BE IN SUCH A HURRY IF
SHE IS FERRYING DRUGS AND WE HEAR A PUBLICRELATIONS EXECUTIVE AT A MAJOR
CORPORATION SELFDIAGNOSE AN ACUTE CASE OF COPING FATIGUE HER
PSYCHOLOGICAL AILMENT STEMS SHE THINKS FROM THE FACT THAT HER RACE WAS
NOT SEEN AS AN ASSET BUT AS SOMETHING SHE HAD TO OVERCOME

ANGUISHED VOICES SUCH AS THESE ARE UNITED BY A SHARED SENSE THAT WHITE
AMERICA HAS DISAPPOINTED THEM THE PROBLEM IS A BROKEN CONTRACT IN THE DAYS
WHEN PROMISE OF RACIAL HARMONY FILLED THE AIR AT PUBLIC RALLIES
MIDDLECLASS BLACKS BELIEVED PERHAPS MORE AGGRESSIVELY THAN ANYONE ELSE IN
THE DREAM OF AMERICA THEY WORKED HARD SAVED THEIR MONEY AND PROTESTED
PEACEFULLY THE DEAL WAS THAT IN EXCHANGE THEIR CHILDREN WOULD GROW UP IN
GOOD IE WHITE SCHOOLS SECURE PROFESSIONAL/MANAGERIAL POSITIONS AND
SHARE EQUALLY IN THE OPPORTUNITY PIE

SO WHAT HAPPENED WHITE AMERICANS NEVER BOUGHT THIS VERSION OF THE AMERICAN
DREAM INSTEAD MR COSE SAYS WHITE AMERICANS POINTED TO THE PATHOLOGIES IN
THE UNDERCLASS OF URBAN BLACK LIFE WITHOUT DISTINGUISHING THIS UNDERCLASS
FROM THE BURGEONING UPSCALE END OF BLACK SUBURBIA WHEN THE MIDDLECLASS
BLACKS FINALLY REALIZED THAT BLACK SKIN DEFINED THEM MORE THAN EDUCATION
INCOME OR PROFESSION THEY BEGAN A SILENT ANGRY WITHDRAWAL FROM A PREVIOUS
GENERATION'S EFFORTS AT ASSIMILATION

IF THERE WAS ONE SENTIMENT THAT CONSISTENTLY CAME THROUGH IN INTERVIEW
AFTER INTERVIEW WITH VERY SUCCESSFUL BLACK PEOPLE IN ALL WALKS OF LIFE IT
CAN BE SUMMED UP IN ONE PHRASE WE ARE TIRED OF WAITING MR COSE WRITES

HE LECTURES SOFTLY AS HE COMMUNICATES WHAT IS GOING ON IN THE EMERGING
BUPPIEVILLES THOSE LITTLEKNOWN PLACES TO WHICH AN INCREASING NUMBER OF
AFFLUENT BLACK AMERICANS ARE RETREATING TO AVOID CONTACT WITH WHITE PEOPLE
MR COSE NEITHER ADVOCATES NOR CRITICIZES THIS TREND HE DESCRIBES IT

BUT HE DOES EXPRESS OUTRAGE TOWARD SUCH FIGURES AS SEN DANIEL PATRICK
MOYNIHAN WHO REPEATEDLY APPEARS IN THE BOOK TO RAISE THE ALARM OF AN
ENCROACHING BLACK UNDERCLASS THE PROBLEM AT THE TOP IS JUST AS SERIOUS TO
AMERICA'S FUTURE AS ANYTHING AT THE BOTTOM MR COSE RESPONDS ADDING THAT
A NATION WHICH EMBITTERS THOSE STRUGGLING HARDEST TO BELIEVE IN IT AND TO
WORK WITHIN ITS ESTABLISHED SYSTEMS IS UNDERMINING ANY EFFORT TO PROVIDE
WOULDBE HUSTLERS AND DOPE DEALERS WITH AN ATTRACTIVE ALTERNATIVE TO THE
STREETS

FAILURE TO PAY HEED MR COSE ARGUES VERY PERSUASIVELY WILL GENERATE A
NATION DIVIDED BY RACE AND CLASS THAT MAY RIP APART THE IDEALISM OF THE
BROWN DECISION AND KING'S DREAM

MR FULWOOD IS ON LEAVE AS WASHINGTON CORRESPONDENT OF THE LOS ANGELES
TIMES 9401180080 940118 LEISURE & ARTS BEYOND SOUP' AND NUTS THE NEW
HOST OF LATER'  BY BARBARA D PHILLIPS

BURBANK CALIF GREG KINNEAR DOESN'T TAKE OVER BOB COSTAS'S CHAIR ON
NBC'S LATER UNTIL VALENTINE'S DAY TO BE TECHNICAL 135 AM EST FEB
15 BUT ONE THING IS CERTAIN HIS FIRST GUEST ON THE HALFHOUR SHOW WILL
NOT BE A CROSSDRESSER A SIDESHOW PERFORMER OR TOBY THE NEUTER YOU SEE MR
KINNEAR PRONOUNCED KINNEAR SEES ENOUGH OF THEM ON HIS DAY JOB AND HE'S
NOT GIVING THAT ONE UP ANYTIME SOON

AS THE TALKING HEAD AND HOST OF THE E ENTERTAINMENT CHANNEL'S TALK SOUP
THE HANDSOME 30YEAROLD PROVIDES THE SPICE THAT SEASONS THE DAILY DIGEST OF
THE MOST OUTRAGEOUS CLIPS FROM THE DAYTIMETALKSHOW SUBCULTURE TWENTYSIX
MILLION CABLE HOUSEHOLDS NOW RECEIVE E WHICH RUNS TALK SOUP SEVERAL
TIMES EACH DAY

WHEN I STARTED ON THE SHOW I DIDN'T KNOW WHAT A HERMAPHRODITE WAS OR A
CROSSDRESSER AND THIS TRANSSEXUAL BUSINESS I WASN'T AWARE OF IN THE FIRST
COUPLE OF MONTHS I WAS JUST STUNNED AND AMAZED I'LL COME TO THE OFFICE NOW
AND OUR PRODUCER WILL SAY OK WE'RE GOING TO LEAD OFF THE SHOW TODAY WITH
A CLIP OF A CROSSDRESSING HERMAPHRODITE WITH ONE WOODEN LEG WHO JUGGLES
FIREBALLS WHILE SINGING PHANTOM OF THE OPERA' AND I'LL BE LIKE THAT'S
IT GEEZ WE NEED SOMETHING BIG' SAYS MR KINNEAR WHO PAIRS FACIAL
GYMNASTICS THAT WOULD MAKE SUNSET BOULEVARD'S NORMA DESMOND PROUD WITH A
PLAYFUL VOICE THAT SEEMS BIOENGINEERED FOR RADIO

WHAT STILL SHOCKS MR KINNEAR JOAN RIVERS HAD CIRCUS SIDESHOW PERFORMERS
ON A COUPLE OF WEEKS AGO AND FEATURED A GENTLEMAN BY THE NAME OF MR LIFTO
WHO HAD 200 TATTOOS ON HIS BODY MR LIFTO HOISTED CINDER BLOCKS WITH
CHAINS LOOPED THROUGH HIS NIPPLES WHEN I MENTION MY OWN FAVORITE A GUEST
WHO CLAIMED TO BE BORN WITH NO SEXUAL ORGANS AND SAID HE WAS SHUNNED BY A
TRULY SEXIST SOCIETY MR KINNEAR KNOWS JUST WHO I MEAN AH TOBY THE
NEUTER YES YES YES OH YES TOBY THE NEUTER HAS DONE COUNTLESS SHOWS
I'VE PROBABLY SEEN HIM ON A DOZEN APPEARANCES OVER THE LAST COUPLE OF
YEARS

TOBY ISN'T THE ONLY PROFESSIONAL GUEST MR KINNEAR SAYS AND I'LL SAY THAT
A COUPLE ACTUALLY REDEFINE WHAT THEIR PROBLEM IS FROM SHOW TO SHOW THEY
HAVE THIS PROBLEM BUT SINCE THE PRODUCER HAS ALREADY HEARD OF THAT THE
PROBLEM HAS SINCE EVOLVED INTO SOMETHING WITH A SLIGHTLY DIFFERENT TWIST

TALK SOUP TOO HAS CHANGED SINCE ITS DEBUT IN DECEMBER 1991 AT FIRST
MR KINNEAR WAS JUST A SLIGHTLY SUBVERSIVE ANCHOR CONTRIBUTING A FUNNY FACE
OR A WRYLY INFLECTED COMMENT TO BRIDGE THE SPACE BETWEEN TALKSHOW SNIPPETS
FOR THE PAST SEVERAL MONTHS THOUGH HE HAS BEEN INVOLVING THE CREW ON
CAMERA IN SKETCHES PLAYING WITH THE CLIPS THROUGH SPECIAL EFFECTS AND
GENERALLY PUTTING MORE EMPHASIS ON THE CONNECTIVE MATERIAL

IN THE LAST SIX MONTHS THAT SIDE OF THE SHOW DEFINITELY HAS EVOLVED MORE
THAN ANYTHING I JUST LIKE DOING IT IT JUST MAKES WHAT I THINK COULD
OTHERWISE BE A SOMEWHAT BORING SHOW A LITTLE MORE SPONTANEOUS I THINK IT'S
A HELL OF A LOT MORE INTERESTING TO COME UP WITH A FEW MORE BELLS AND
WHISTLES THAN TO JUST SIT UP THERE AND DO IT STRAIGHT

MOST OF THE DAYTIME HOSTS ENJOY OR AT LEAST TOLERATE THE RIBBING JERRY
SPRINGER AND MO GAFFNEY HAVE EVEN PINCHHIT FOR MR KINNEAR BUT OPRAH'
AND DONAHUE' WE'VE NEVER REALLY HAD MR KINNEAR SAYS THE SHOWS MUST
GRANT PERMISSION FOR THEIR CLIPS TO BE USED TALK SOUP RAN GERALDO
NUGGETS FOR ABOUT A YEAR AND A HALF AND JUST OUT OF NOWHERE THIS SUMMER
ABOUT THE TIME HE HAD THE FATTY TISSUE FROM HIS BUTTOCKS PUT INTO HIS
FOREHEAD TO RELIEVE WRINKLES GERALDO RIVERA DECIDED TO STOP SHARING HIS
STUFF WITH THE AWARDWINNING TALK SOUP' THE HOMERIC EPITHET
AWARDWINNING TALK SOUP' IS DECLAIMED FREQUENTLY ON THE PROGRAM BUT JUST
WHAT AWARD WAS WON IS A MYSTERY

I GO OUT TO ONE OF MY RARE DINNERS LAST NIGHT AT A RESTAURANT AND THE
WAITER IS RECITING THE 20 OR 30 GOATCHEESE PIZZAS AND I'M RIGHT HERE
RIGHT HERE AT THIS TABLE AND BOOM PLOPS DOWN GERALDO AT THE NEXT ONE
WE NEVER MAKE EYE CONTACT AND I REALLY DON'T KNOW WHAT I'M GOING TO SAY
OR DO IF I DO MAKE EYE CONTACT YOU SEE I HAD TRIED TO FIND OUT WHAT THE
PROBLEM WAS IF IT WAS SOMETHING I HAD DONE THAT MADE HIM PULL HIS SHOW
FROM TALK SOUP

LAST NIGHT BEFORE I HAD THE CHANCE TO TAKE ANY SORT OF POSITION OR DEVISE
A STRATEGY THE HOSTESS CAME BACK TO THE BOOTH AND MOVED HIM TO ANOTHER
TABLE I'M STILL WONDERING WHETHER HE MOVED BECAUSE I WAS SITTING THERE OR
IF HE JUST WANTED A BETTER TABLE BUT I HONESTLY DON'T KNOW WHAT THE PROBLEM
WAS OR WHY BECAUSE I THINK HE HAS A GOOD SHOW IT WAS A REAL SHAME TO LOSE
HIM

THIS LAST COMMENT IS MADE IN A TONE OF UTMOST SINCERITY IT IS HERE AND IN
HIS PROFESSIONS OF ADMIRATION FOR THE OTHER DAYTIME HOSTS THAT MR KINNEAR
SHOWS HE IS TRULY THE SON OF A US DIPLOMAT HIS FAMILY WAS IN BEIRUT WHEN
WAR BROKE OUT IN 1975 HE SPENT HIS HIGHSCHOOL YEARS IN ATHENS AS FOR HIS
COMEDIC FOREBEARS MR KINNEAR HAS BEEN CALLED A LETTERMAN BABY BUT HE
FROWNS AT THE LINKAGE

IT'S ALWAYS HARD TO KNOW WHO INFLUENCES YOU AND WHAT EVENTS OR PEOPLE ARE
RESPONSIBLE FOR THE CHARACTERISTICS THAT ARE IN YOU FROM A COMEDY OR
PERFORMANCE STANDPOINT BUT I'VE ALWAYS LIKED JOHNNY CARSON I LIKE ROBIN
WILLIAMS AND STEVE MARTIN THERE'S A WHOLE SLEW OF PERFORMERS I CAN RELATE
TO WHEN IT COMES TO WHO IS RESPONSIBLE FOR THE MONSTER THAT IS GREG
KINNEAR I DON'T KNOW WHO TO BLAME

THE MONSTER HAS HIS FANS AND IF THE COMPUTER BULLETIN BOARDS DEVOTED TO
HIM ON THE PRODIGY AND AMERICA ONLINE COMPUTER NETWORKS ARE ANY GUIDE MOST
OF THESE ADMIRERS ARE FEMALE AND THE ATTRACTION IS NOT ENTIRELY
INTELLECTUAL A REPRESENTATIVE PAEAN TO THE UNMARRIED MR KINNEAR'S WIT AND
NAUGHTYCHOIRBOY GOOD LOOKS IS HEADLINED GREG IS A GOD GORGEOUS HUNK
OF A MAN IS THE MORE EARTHBOUND CHARACTERIZATION OF ANOTHER ADMIRER

THESE DEVOTED FOLLOWERS ARE OILING THEIR VCRS AND READYING VALENTINES FOR
MR KINNEAR'S DEBUT ON LATER AND WHAT WILL THEY ALONG WITH
GARDENVARIETY INSOMNIACS AND SHIFT WORKERS FIND IN THE WEE HOURS OF FEB
15

I KNOW I'LL BE HOSTING AS OPPOSED TO BOB COSTAS I'VE THOUGHT ABOUT THAT
FOR WEEKS THAT'S PRETTY MUCH WHAT I'VE BEEN DOING SINCE THANKSGIVING WHEN
I GOT THE JOB MR KINNEAR SAYS DURING OUR INTERVIEW HELD EARLY THIS
MONTH WE ARE ALSO GOING TO HAVE A LIVE STUDIO AUDIENCE WHICH INSTANTLY
CHANGES THE TONE OF THE SHOW WHILE THE NEW LATER WILL STILL DEVOTE ITS
ENTIRE HALFHOUR TO A SINGLE GUEST THE PROGRAM UNLIKE THE COSTAS VERSION
WILL BE TAPED ONLY A FEW HOURS BEFORE IT AIRS

ANY DREAM GUESTS I WOULD LIKE TO GET JOHNNY CARSON FOR THE PREMIERE SHOW
BUT I HEAR HE'S TOUGHER TO GET THAN THE POPE SO I'M TALKING TO THE POPE
AND I HEAR HE'S TOUGHER TO GET THAN GARY COLEMAN YOU KNOW I THINK
THERE'S A LOT OF PEOPLE I'D LIKE TO TALK TO STEVE MARTIN I'VE HEARD THAT
BARRY GOLDWATER IS A GREAT GUEST THE GUY MIKE LEVEY WHO DOES AMAZING
DISCOVERIES' MAYBE RON POPEIL WHO HAS COME UP WITH THE SPRAYPAINT HAIR
FOR MEN I DON'T KNOW THE LIST OF GUESTS IS SOMETHING I HAVEN'T AT THIS
STAGE GIVEN A GREAT DEAL OF TIME TO

AT WHAT STAGE IS HE

THE PANIC STAGE

MS PHILLIPS IS A JOURNAL ASSISTANT EDITORIAL FEATURES EDITOR 9401180079
940118 ABREAST OF THE MARKET CYCLICAL ISSUES DRIVE INDUSTRIALS TO THE
EIGHTH RECORD THIS YEAR  BY ANITA RAGHAVAN AND DAVE PETTIT STAFF
REPORTERS OF THE WALL STREET JOURNAL

NEW YORK THE DOW JONES INDUSTRIAL AVERAGE PLODDED TO ANOTHER HIGH AS
INVESTORS CONTINUED TO FUNNEL CASH INTO ECONOMICALLY SENSITIVE STOCKS

THE DOW INDUSTRIALS CLIMBED 309 POINTS TO 387029 ITS EIGHTH RECORD THIS
YEAR GAINS IN OIL STOCKS AND A HANDFUL OF INDUSTRIAL STOCKS PROPELLED THE
INDEX OF 30 BLUECHIP STOCKS HIGHER CATERPILLAR JUMPED 2 TO 92 1/2
GOODYEAR TIRE & RUBBER 1 7/8 TO 49 1/8 ALUMINUM CO OF AMERICA 1 1/4 TO 74
1/4 AND UNION CARBIDE 1 1/8 TO 24 1/4

BUT THE STANDARD & POOR'S 500STOCK INDEX LOST 161 POINTS TO 47330 AND THE
NASDAQ COMPOSITE INDEX EASED 013 TO 79218 RETREATING FROM ITS RECORD SET
FRIDAY

DECLINING ISSUES OUTNUMBERED ADVANCERS 1071 TO 994

VOLUME ON THE NEW YORK STOCK EXCHANGE DROPPED TO 2264 MILLION SHARES THE
SLOWEST SINGLE DAY THIS YEAR FROM 305 MILLION SHARES FRIDAY TRADING
ACTIVITY WAS SLUGGISH AS MANY INVESTORS WERE AWAY FOR THE OBSERVANCE OF
MARTIN LUTHER KING JR'S BIRTHDAY

ANALYSTS SAID THAT DESPITE THE LACKLUSTER DAY INVESTORS WERE SNAPPING UP
CYCLICAL STOCKS

WITH THE ECONOMY PICKING UP SPEED AND EARNINGS STARTING TO COME OUT
INVESTORS ARE REALIZING THAT IT'S ECONOMICALLY SENSITIVE STOCKS WHICH ARE
GOING TO PRODUCE THE EARNINGS GAINS SAID THOMAS MCMANUS AN ANALYST AT
MORGAN STANLEY

MR MCMANUS NOTED THAT SINCE THE START OF THE YEAR THE INVESTMENT BANK'S
INDEX OF CYCLICAL STOCKS HAS CLIMBED 352 WHILE ITS BAROMETER OF CONSUMER
STOCKS HAS SUNK 113

STEVEN KROLL A MANAGING DIRECTOR AT MONNESS CRESPI & HARDT SAID AN UPBEAT
EARNINGS FORECAST FROM UNION CARBIDE HELPED TRIGGER THE GAINS IN THE
CYCLICAL GROUP UNION CARBIDE ASTONISHED INVESTORS WHEN IT SAID THAT IT
EXPECTS FOURTHQUARTER 1993 EARNINGS TO BE ABOUT 25 CENTS A SHARE ON A FULLY
DILUTED BASIS UP FROM 12 CENTS LAST YEAR AND ABOVE ANALYSTS' EXPECTATIONS

MEANWHILE FARMMACHINERY STOCKS RALLIED AFTER A TRADE GROUP REPORTED ROBUST
GAINS IN DECEMBER RETAIL SALES DEERE JUMPED 3 1/8 TO 79 5/8 AND TENNECO
ROSE 1 3/8 TO 56 1/2

BUT COCACOLA SLUMPED 7/8 TO 41 5/8 IN AN INTERVIEW IN BARRON'S RENOWNED
MONEY MANAGER JOHN NEFF PANNED THE STOCK SAYING THAT IT COULD BE THE
PHILIP MORRIS OF THIS OR MAYBE NEXT YEAR

MEANWHILE MANY INVESTORS WERE PREOCCUPIED WITH REPORTS FROM SOUTHERN
CALIFORNIA WHERE A SEVERE EARTHQUAKE KILLED AT LEAST 20 PEOPLE AND CAUSED
EXTENSIVE DAMAGE AROUND LOS ANGELES

SHARES OF PROPERTY AND CASUALTY INSURANCE COMPANIES SLIPPED ON CONCERNS
ABOUT THE QUAKE'S COST SAFECO EASED 1/4 TO 53 7/8 ON THE NASDAQ STOCK
MARKET WHILE ON THE BIG BOARD CHUBB FELL 3/8 TO 77 3/8 ALLSTATE SLIPPED 1
TO 28 5/8 AND CNA FINANCIAL DECLINED 1 3/4 TO 76 1/4

PARAMETRIC TECHNOLOGY TUMBLED 5 TO 33 1/4 ON NASDAQ THE SOFTWARE COMPANY IN
WALTHAM MASS REPORTED NET INCOME OF 25 CENTS A SHARE FOR THE FIRST
QUARTER ENDED JAN 1 UP FROM 14 CENTS LAST YEAR AND IN LINE WITH ANALYSTS'
FORECASTS SOME INVESTORS THOUGH WERE DISAPPOINTED WITH ITS REVENUE
GROWTH

QUALCOMM SKIDDED 3 1/8 TO 51 ON NASDAQ THE SAN DIEGO WIRELESS
COMMUNICATIONS COMPANY REPORTED FIRSTQUARTER EARNINGS OF 18 CENTS A SHARE
UP FROM A LOSS OF EIGHT CENTS LAST YEAR BUT SHORT OF THE 21 CENTS MEAN
ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE
SYSTEM

ARCHERDANIELSMIDLAND INCREASED 1 3/8 TO 25 7/8 THE COMPANY REPORTED
EARNINGS OF 44 CENTS A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH VERSUS
45 CENTS A YEAR EARLIER THE EFFECT OF COMMODITY PRICE INCREASES ON
INVENTORY VALUATIONS CUT THE LATEST QUARTER'S INCOME BY SEVEN CENTS A SHARE

INTERNATIONAL BUSINESS MACHINES LOST 1 1/8 TO 57 1/2 KEMPER SECURITIES
ANALYST JOSEPH PAYNE DOWNGRADED HIS RATING ON THE ARMONK NY COMPANY'S
STOCK TO REDUCE FROM HOLD HE SAID THE STOCK IS OVERVALUED BASED ON BIG
BLUE'S EARNINGS PERFORMANCE

ROCKWELL INTERNATIONAL JUMPED 1 1/2 TO 39 1/8 AFTER THE AEROSPACE COMPANY IN
SEAL BEACH CALIF REPORTED FIRSTQUARTER EARNINGS OF 68 CENTS A SHARE UP
FROM 58 CENTS A YEAR AGO AND ABOVE THE 62 CENTS MEAN ESTIMATE REPORTED BY
IBES

CAREMARK JUMPED 1 1/2 TO 21 AFTER THE NORTHBROOK ILL COMPANY AGREED TO
BUY MEDICAL CARE AMERICA'S HOMEINFUSION UNIT FOR 175 MILLION SHARES OF
MEDICAL CARE IN DALLAS EASED 7/8 TO 23 1/8

AMERICAN DEPOSITARY RECEIPTS OF VOLVO SURGED 4 1/4 TO 81 1/8 HEDGE FUND
MANAGER GEORGE NOBLE MADE POSITIVE COMMENTS ABOUT THE SWEDISH AUTO MAKER IN
AN INTERVIEW PUBLISHED IN THIS WEEK'S BARRON'S MAGAZINE

SHARES OF MANY LARGE CONSUMER PRODUCTSORIENTED GROWTH COMPANIES LOST
GROUND PHILIP MORRIS WAS OFF 1 TO 56 5/8 GENERAL MILLS FELL 1 1/8 TO 58
7/8 AND WALT DISNEY EASED 1 TO 46 5/8

PRECIOUSMETALS PRODUCERS ADVANCED WITH THE PRICE OF GOLD AMERICAN BARRICK
GAINED 1/2 TO 30 3/4 HOMESTAKE MINING CLIMBED 7/8 TO 24 7/8 AND ON THE
AMERICAN STOCK EXCHANGE ECHO BAY MINES ROSE 1/2 TO 14 7/8 GOLD FOR
FEBRUARY DELIVERY GAINED 210 TO 39220 AN OUNCE IN NEW YORK 9401180078
940118 LETTERS TO THE EDITOR RENO RIGHT TO FOCUS ON THE BIG PICTURE

IT IS UNDERSTANDABLE THAT SOME CAREER PROSECUTORS SEE PROSECUTION AS THE
PRIME INSTRUMENT OF CRIME CONTROL ATTORNEY GENERAL OF SOCIAL WORK BY
ALICIA MUNDY EDITORIAL PAGE JAN 5 BUT THE PERSON AT THE TOP NEEDS A
LITTLE EXTRA VISION TO EXAMINE THE ENTIRE SYSTEM TO SEE WHETHER IT'S WORKING
THE BEST IT CAN INDIVIDUAL PROSECUTORS MIGHT ENJOY THE LEVERAGE THAT
MANDATORY MINIMUMS GIVE THEM TO MAKE SWEET DEALS WITH DRUG DEALERS WHO NAME
THEIR SUPPLIERS BUT ATTORNEY GENERAL JANET RENO IS RIGHT TO BE CONCERNED
THAT THE DEALERS AND SUPPLIERS OFTEN END UP GETTING LIGHTER PUNISHMENTS THAN
SMALLTIME FIRST OFFENDERS WHO HAVE NO INFORMATION TO BARGAIN WITH AND THAT
NONVIOLENT FIRST OFFENDERS ARE GETTING TOUGHER SENTENCES THAN MOST PEOPLE
CONVICTED OF MURDER AND RAPE

TWELVE YEARS OF SUCH NONSENSE HAS LEFT US WITH A 45 INCREASE IN VIOLENT
CRIME AND A CONSTANTLY INCREASING PORTION OF NONVIOLENT OFFENDERS TAKING UP
COSTLY PRISON SPACE WHILE THE MOST VICIOUS PREDATORS ARE PAROLED EARLY
THREEOUTOFFIVE INMATES TODAY ARE DOING TIME FOR NONVIOLENT OFFENSES
ONEOUTOF10 IS LOCKED UP FOR DRUG POSSESSION ACCORDING TO JUSTICE
DEPARTMENT FIGURES

RESISTANCE TO CHANGE IS A HALLMARK OF CAREER BUREAUCRATS BUT HARDLY A
REASON TO BLOCK GENUINE IMPROVEMENTS THAT MIGHT MAKE THE STREETS SAFER AND
THE JUSTICE SYSTEM MORE RATIONAL 9401180077 940118 POLITICS & POLICY 
CLINTON DIDN'T PROFIT IN 1979 TRANSFER OF LAND TO WHITEWATER ASSOCIATE
SAYS  BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET
JOURNAL

WASHINGTON PRESIDENT CLINTON DIDN'T MAKE A CAPITAL GAIN WHEN HE AND HIS
PARTNERS TRANSFERRED SOME ARKANSAS LAND TO THEIR OWN WHITEWATER DEVELOPMENT
CO IN 1979 ACCORDING TO A PERSON CLOSE TO THE CLINTONS WHO IS FAMILIAR
WITH THE TRANSACTION

THE COMMENT WAS MADE IN RESPONSE TO A TIME MAGAZINE ARTICLE THIS WEEK THE
ARTICLE NOTES THAT THE LAND'S VALUE 882 AN ACRE WHEN IT WAS FIRST
PURCHASED BY MR CLINTON AND HIS PARTNERS IN 1978 WAS PEGGED BY THEM AT A
HIGHER PRICE 1087 AN ACRE WHEN IT WAS TRANSFERRED TO WHITEWATER ABOUT A
YEAR LATER

THE WHITEWATER INVESTMENT IS UNDER FEDERAL SCRUTINY AND AT THE PRESIDENT'S
REQUEST ATTORNEY GENERAL JANET RENO PLANS TO APPOINT A SPECIAL COUNSEL TO
LOOK INTO IT AND RELATED MATTERS AMONG THE ISSUES INVOLVED ARE WHETHER MR
CLINTON EARNED ANY PROFIT ON THE INVESTMENT AND WHETHER HE AND HIS WIFE
ACCURATELY REPORTED ANY PROFITS OR LOSSES TO THE INTERNAL REVENUE SERVICE
AND OTHER AUTHORITIES

THE PERSON CLOSE TO THE CLINTONS WHO DECLINED TO BE IDENTIFIED OTHERWISE
ASSERTED VIGOROUSLY THAT THE ASSET TRANSFER IN 1979 WASN'T A TAXABLE
TRANSACTION FROM WHICH A CAPITAL GAIN OR LOSS COULD BE RECORDED FOUR PEOPLE
 MR CLINTON HILLARY RODHAM CLINTON AND JAMES AND SUSAN MCDOUGAL 
BOUGHT THE LAND IN 1978 AND THOSE SAME FOUR FORMED THE WHITEWATER
PARTNERSHIP INTO WHICH THAT ASSET WAS PLACED IN 1979

THAT KIND OF TRANSACTION IS BETTER CLASSIFIED AS A REORGANIZATION THE
PERSON CLOSE TO THE CLINTONS SAID AND DOES NOT LEAD TO EITHER PROFIT OR
LOSS REGARDLESS OF WHAT VALUE THE OWNERS PLACE ON IT NO MONEY ACTUALLY
CHANGED HANDS AND THE PERSON ASSERTED THE INCREASED VALUATION OF THE LAND
WAS REASONABLE BECAUSE IN THE YEAR OF OWNERSHIP WORK WAS DONE ON THE
PROPERTY INCLUDING THE BUILDING OF A ROAD AND SURVEYING AND MARKETING OF
THE LAND FOR SALE

THE CLINTONS AND MCDOUGALS BOUGHT THE LAND FROM A COMPANY CALLED 101 RIVER
DEVELOPMENT INC THE LAND WAS PART OF A 3600ACRE TRACT FOR WHICH 101 RIVER
DEVELOPMENT HAD PAID ABOUT 400 AN ACRE LESS THAN A MONTH EARLIER THE
PERSON CLOSE TO THE CLINTONS SAID THIS PRICE DISCREPANCY WAS IRRELEVANT
BECAUSE THE CLINTONS AND MCDOUGALS WERE BUYING CHOICE PIECES OF THE LARGER
TRACT THE PERSON ALSO SAID 101 RIVER DEVELOPMENT WAS NOT OWNED BY EITHER
FAMILY

THE WHITE HOUSE DECLINED TO COMMENT ON ANY SPECIFIC ALLEGATIONS RAISED BY
THE TIME ARTICLE THE WHITEWATER MATTER IS IN THE HANDS OF THE SPECIAL
COUNSEL ONCE IT IS APPOINTED SAID GEORGE STEPHANOPOULOS A SENIOR AIDE TO
THE PRESIDENT 9401180076 940118 BIOTECHNOLOGY GENERAL CORP

ISELIN NJ BIOTECHNOLOGY GENERAL CORP SAID IT RECEIVED PERMISSION
FROM THE AUSTRALIAN GOVERNMENT TO MARKET ITS OXANDRIN FOR PEDIATRIC GROWTH
DISORDERS

THE MAKER OF GENETICALLY ENGINEERED HEALTHCARE PRODUCTS SAID AUSTRALIA IS
THE FIRST COUNTRY TO APPROVE THE DRUG WHICH CARRIES THE GENERIC NAME
OXANDROLONE FOR SUCH DISORDERS

THE DRUG WILL BE MARKETED BY BIOPHARMACEUTICAL FIRM CSL LTD OF AUSTRALIA
UNDER THE LONAVAR TRADEMARK BIOTECHNOLOGY SAID TERMS OF THE LICENCING
AGREEMENT WEREN'T DISCLOSED 9401180075 940118 LAW LEGAL BEAT 
ELECTRONIC BULLETIN BOARDS FURNISH LEGAL INFORMATION TO NONLAWYERS 
 BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL

WHEN A NEIGHBOR ASKED WASHINGTON STATE HOMEMAKER DOROTHY BENSON TO TEAR DOWN
HER FENCE LAST SPRING SHE USED A HOME COMPUTER TO SKIM RELEVANT STATE LAWS
THEN SHE KEPT THE FENCE WHERE IT WAS

SHE MADE HER DECISION AFTER SLIPPING INTO A PUBLIC ELECTRONIC LAW LIBRARY
AN INCREASINGLY POPULAR STOP ON THE WASHINGTON INFORMATION HIGHWAY FOR THE
FIRST TIME IN THEIR LIVES NONLAWYERS LIKE MRS BENSON HAVE THE RESOURCES TO
HUNT DOWN STATE LAWS AND REGULATIONS THAT RELATE TO PROBLEMS AT WORK AND
HOME SOME ATTORNEYS WARN THOUGH THAT PEOPLE CAN TRIP THEMSELVES UP BY
PLAYING LAWYER

THOUGH WASHINGTON APPEARS TO HAVE THE MOST COMPREHENSIVE BEST ORGANIZED
COMPUTER LAW LIBRARY USERS OF OTHER ELECTRONIC BULLETIN BOARDS AROUND THE
COUNTRY ARE INCREASINGLY EXCHANGING LEGAL INFORMATION INFORMALLY AND PEOPLE
IN SOME 20 STATES HAVE INQUIRED ABOUT STARTING SYSTEMS SIMILAR TO THE ONE IN
WASHINGTON SAID WILLIAM J SORCINELLI A SPOKANE ATTORNEY WHO RUNS THE
WASHINGTON BULLETIN BOARD CALLED LEGAL EASE

THE LEGAL EASE LIBRARY CONTAINS THE COMPLETE TEXT OF STATE LAWS AND
REGULATIONS AS WELL AS FILLINTHEBLANK LEGAL DOCUMENTS THAT ENTREPRENEURS
HAVE TRANSFERRED INTO COMPUTER FILES CONSUMERS CAN GET THE INFORMATION
OFTEN FREE BY LOGGING ONTO AN ELECTRONIC BULLETIN BOARD

ONE OF THE LIBRARY'S 2000ODD USERS FOUND WASHINGTON LAWS THAT HELPED HIM
QUASH A SCHOOL PROPOSAL TO DROP HIS CHILDREN FROM THE BUS ROUTE ANOTHER
PERSON SHOWED THE LOCAL DOGCATCHERS THAT THEY WEREN'T ALLOWED TO PEEK OVER
FENCES TO FIND UNLICENSED DOGS MRS BENSON LEARNED THAT THE FENCE
SURROUNDING HER SHEEP PASTURE PROBABLY COULD STAY BECAUSE IT HAD BEEN UP SO
LONG THE DISPUTE SEEMED HEADED FOR A COURTROOM BUT THE NEIGHBOR BACKED
DOWN

I'VE TOLD ALL MY FRIENDS THAT IF THEY NEED LEGAL INFORMATION THEN THEY CAN
CALL US AND WE CAN GET IT OFF OF THIS BOARD SHE SAID

CHANCES ARE MRS BENSON'S LOCAL COURTHOUSE HAS BOOKS WITH THE SAME LAWS
THAT SHE DUG UP BY COMPUTER BUT SHE LIVES 30 MILES OUTSIDE OF SPOKANE AND
IT WOULD HAVE TAKEN HOURS FOR A NONLAWYER LIKE HERSELF TO FIND THE
INFORMATION SHE GOT IN 30 MINUTES BY TYPING THE RIGHT SEARCH WORDS I WOULD
NEVER HAVE GONE SOMEWHERE ELSE TO GET THE INFORMATION MOST LIKELY SAID
MRS BENSON OF ELK WASH I WOULD HAVE SAID IT'S OUT OF MY LEAGUE' THIS
GAVE ME THE PRESUMPTION THAT I HAD SOME RIGHTS

BESIDES LOOKING UP LAWS MOST FREQUENTLY THOSE COVERING FAMILY MATTERS AND
TRAFFIC COURTCONSUMERS ALSO SWAP ADVICE SIMILAR LEGALCHAT LINES EXIST ON
NUMEROUS BULLETIN BOARDS AND COMPUTER NETWORKS SUCH AS AMERICA ONLINE INC
OF VIENNA VA THESE LEGAL EXCHANGES ARE PARTICULARLY POPULAR AMONG LAW
STUDENTS AND EVEN AN EXPERT WITNESS STEPHEN HOLLANDER USED SUCH A NETWORK
FOR LEGAL ADVICE ABOUT A YEAR AGO WHEN HE WAS INVOLVED WITH A CLASSACTION
LAWSUIT IN ONTARIO THE CANADIAN PROVINCE DIDN'T ALLOW CLASS ACTIONS UNTIL
1992

WE HAD THE LEGISLATION IN PLACE BUT NOBODY REALLY KNEW WHAT TO DO SAID
MR HOLLANDER OF OTTAWA HOW DO WE GO ABOUT GETTING IN CONTACT WITH CLASS
MEMBERS A WHOLE RAFT OF PRACTICAL QUESTIONS LIKE THAT HE POSTED A QUERY
ON A LEGALCHAT SECTION OF COLUMBUS OHIO'S COMPUSERVE INC A UNIT OF H&R
BLOCK INC AND THE NEXT DAY HAD THE NAME OF A CLASSACTION EXPERT

ATTORNEYS WHO USE SIMILAR NETWORKS THEMSELVES GENERALLY SAY THEY SEE
NOTHING WRONG WITH MAKING STATE AND LOCAL LAWS AVAILABLE ELECTRONICALLY BUT
THEY WARN THAT CONSUMERS MAY NOT BE GETTING THE FULL PICTURE BY JUST READING
A LAW

MRS BENSON FOR INSTANCE HAD FOCUSED ON A STATE LAW THAT SHE READ TO MEAN
THAT SHE COULD KEEP THE FENCE IN PLACE BECAUSE IT HAD BEEN UP LONGER THAN
SEVEN YEARS WHAT SHE DIDN'T KNOW IS THAT COURTS GENERALLY REQUIRE THAT TO
HAVE A CHANCE OF BEING PROTECTED A FENCE MUST BE STANDING FOR 10 YEARS IN
SUCH DISPUTES SAID ELLEN CONEDERA DIAL CHAIRWOMANELECT OF THE WASHINGTON
STATE BAR ASSOCIATION'S REAL PROPERTY SECTION

THAT WOULDN'T HAVE MADE A DIFFERENCE IN MRS BENSON'S CASE SINCE THE FENCE
HAD BEEN UP 15 YEARS BUT IT IS SOMETHING SHE SHOULD HAVE KNOWN BEFORE GOING
TO COURT JUST LOOKING UP THE STATUTE CAN REALLY LEAD ONE TO THE WRONG
CONCLUSIONS SAID MS DIAL

WITH JUST SUCH DANGERS IN MIND SPOKANE COMPUTER CONSULTANT MILES E
CRAWFORD USED LEGAL EASE MAINLY AS A TOOL TO SHAVE ATTORNEY FEES WHEN HE SET
UP HIS CORPORATION HE USED INFORMATION FROM THE BULLETIN BOARD INCLUDING
DOITYOURSELF FORMS TO DRAW UP INCORPORATION PAPERS HIMSELF THEN HE ASKED
AN ATTORNEY TO DOUBLECHECK THE WORK HE WASN'T EXACTLY PLEASED MR
CRAWFORD SAID LAUGHING I THINK HE WAS EXPECTING TO MAKE MORE MONEY
9401180074 940118 TECHNOLOGY COMPUTER BULLETIN BOARDS' HOPPING AFTER
EARTHQUAKE

LOS ANGELES CALIFORNIA'S EARTHQUAKE TEMPORARILY KNOCKED OUT PHONE LINES
AND SOME POWER BUT ELECTRONIC MESSAGES ABOUT THE DISASTER WERE FLYING THICK
AND FAST ONLY MINUTES AFTER THE SHAKING STOPPED

SOUTHERN CALIFORNIA AWASH IN COMPUTER USERS WHO COMMONLY TALK TO EACH OTHER
THROUGH THE INTERNET COMPUTER NETWORK WAS SOON TIED TOGETHER WITH EMAIL
CONVERSATIONS RUMORS AND REASSURANCES

ON THE PRODIGY SERVICES COMPUTER BULLETIN BOARD DOZENS OF USERS FROM AROUND
THE COUNTRY RUSHED IN WITH OFFERS TO CONTACT RELATIVES OF LOS ANGELES
RESIDENTS PRODIGY SAID 500 MESSAGES WERE POSTED WITHIN THE FIRST FEW HOURS

LESS THAN AN HOUR AFTER THE QUAKE PEOPLE WERE BUZZING ON THE EARTHQUAKE
CHANNEL ON INTERNET TRADING NEWS TIDBITS FROM TELEVISION AND RADIO
BROADCASTS AND A PARALLEL QUAKECHAT CHANNEL EMERGED FOR PEOPLE TO DISCUSS
THE EVENTS LEAVING THE OTHER CHANNEL OPEN FOR NEWS

INTERNET THE SUCCESSOR OF A NETWORK BUILT BY THE PENTAGON AND DESIGNED TO
WITHSTAND DISASTER IS REMARKABLY ROBUST SAID VINTON G CERF ONE OF THE
ORIGINAL DESIGNERS OF INTERNET 9401180073 940118 SOUTHERN CALIFORNIA
EARTHQUAKE EXPECTED BIG ONE' HASN'T ARRIVED YET  BY JERRY E
BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL

DESPITE THE CASUALTIES AND PROPERTY DAMAGE THE EARTHQUAKE THAT STRUCK LOS
ANGELES YESTERDAY MORNING WASN'T THE BIG ONE THAT CALIFORNIANS HAVE BEEN
EXPECTING FOR SEVERAL YEARS

GEOPHYSICISTS SAID THE 1992 SOUTHERN CALIFORNIA QUAKE WAS 30 TIMES MORE
POWERFUL THEY ALSO SAID THEY COULDN'T IMMEDIATELY DETERMINE IF YESTERDAY'S
QUAKE WAS DUE TO SLIPPAGE OF A KNOWN OR A PREVIOUSLY UNDISCOVERED GEOLOGICAL
FAULT THAT WON'T BE DETERMINED UNTIL SEISMOLOGICAL DATA FROM SEVERAL
STATIONS HAVE BEEN ANALYZED

PRELIMINARY READINGS OF SEISMOGRAPHS SHOWED THAT YESTERDAY'S EARTHQUAKE
CENTERED UNDER THE LOS ANGELES COMMUNITY OF NORTHRIDGE REGISTERED ABOUT 66
ON THE RICHTER SCALE FOR MEASURING THE ENERGY RELEASED BY EARTHQUAKES IT
WAS FOLLOWED BY MORE THAN A HALFDOZEN AFTERSHOCKS REGISTERING BETWEEN 30
AND 50 ON THE RICHTER SCALE

THERE'LL PROBABLY BE A LOT OF AFTERSHOCKS REGISTERING 40 TO 50 ON THE
SCALE FOR THE NEXT FOUR TO FIVE DAYS SAID GEOPHYSICIST STUART KOYANAGI OF
THE US GEOLOGICAL SURVEY'S EARTHQUAKE INFORMATION CENTER IN GOLDEN COLO

BY COMPARISON WITH YESTERDAY'S QUAKE A MAJOR QUAKE IS ONE THAT REGISTERS
70 OR HIGHER ON THE RICHTER SCALE THE JUNE 1992 EARTHQUAKE CENTERED AT THE
SOUTHERN CALIFORNIA TOWN OF LANDERS NEAR THE MOJAVE DESERT KILLED ONE PERSON
THOUGH IT HAD A RICHTER READING OF 75 THE OCTOBER 1989 QUAKE IN SAN
FRANCISCO WHICH KILLED 63 PEOPLE HIT 71 ON THE SCALE

THE AMOUNT OF DAMAGE AND THE LOSS OF LIFE FROM A QUAKE DEPENDS ON WHERE IT
OCCURS AS MUCH AS ON THE AMOUNT OF ENERGY RELEASED MR KOYANAGI SAID THE
NORTHRIDGE QUAKE HIT IN THE HEAVILY POPULATED SAN FERNANDO VALLEY THAT
STRETCHES FOR 50 MILES NORTH OF DOWNTOWN LOS ANGELES

ONLY EARTHQUAKES REGISTERING 80 OR HIGHER ARE CLASSED AS GREAT QUAKES
EXAMPLES BEING THE 1964 ALASKA EARTHQUAKE 84 AND THE 1906 SAN FRANCISCO
QUAKE ESTIMATED AT 83 ON THE RICHTER SCALE

WE'VE LOOKED AT SOME OF THE SEISMOLOGICAL DATA HERE IN PENNSYLVANIA AND IT
LOOKS LIKE A TYPICAL QUAKE FOR SOUTHERN CALIFORNIA SAID GEOPHYSICIST
CHARLES A LANGSTON AT PENNSYLVANIA STATE UNIVERSITY IN UNIVERSITY PARK

EARTHQUAKE RESEARCHERS HADN'T PREDICTED THE NORTHRIDGE QUAKE AT LEAST NOT
THAT WE KNOW OF SAID MR KOYANAGI OF THE GEOLOGICAL SURVEY NOR WAS THERE
ANY WARNING OF AN IMPENDING QUAKE ALTHOUGH MR KOYANAGI NOTED THAT LAST
WEEK THERE WERE SEVERAL SMALL QUAKES OFF THE COAST OF CALIFORNIA NEAR SANTA
MONICA THAT WERE SUSPICIOUS BUT THEY WEREN'T QUITE IN THE SAME AREA AS
YESTERDAY'S QUAKE

NEVERTHELESS IT WASN'T UNEXPECTED IN THE SENSE THAT SOUTHERN CALIFORNIA
HAS BEEN HAVING A LOT OF QUAKES IN THE LAST FEW YEARS SAID PENN STATE'S
DR LANGSTON THE REPEATED SHAKING OF SOUTHERN CALIFORNIA SEEMS TO HAVE
SOMETHING TO DO WITH THE MOUNTAIN BUILDING THAT'S GOING ON THERE HE SAID
THE SAN FERNANDO VALLEY IS CREATED BY THE SANTA MONICA AND SAN GABRIEL
MOUNTAIN RANGES THAT HAVE BEEN INCHING TOWARD EACH OTHER

ONE QUESTION GEOPHYSICISTS PROBABLY WILL INVESTIGATE IN COMING MONTHS IS
WHETHER THE NORTHRIDGE QUAKE HAS ANY RELATION TO THE LANDERS QUAKE IN JUNE
1992 THE LANDERS QUAKE WAS EXTREMELY UNUSUAL BECAUSE IT SEEMED TO TRIGGER
EARTHQUAKES ACROSS THE WESTERN US FOR WEEKS AFTERWARDS INCLUDING QUAKES
AS FAR AWAY AS YELLOWSTONE NATIONAL PARK AND CASCADE IDAHO AS THOUGH IT
HAD SHAKEN UP THE SUBTERRANEAN GEOLOGY OF THE WHOLE EARTHQUAKEPRONE WEST

 JANUARY 17 1994 NORTHRIDGE AN ESTIMATED 66MAGNITUDE QUAKE CENTERED
NEAR THIS SAN FERNANDO VALLEY TOWN AT LEAST TWO DOZEN DEAD

 JUNE 28 1992 LANDERS A 75 EARTHQUAKE IN THIS TOWN NEAR SAN BERNARDINO
AND A 66 AFTERSHOCK AT BIG BEAR LAKE KILL ONE TODDLER

 OCT 17 1989 LOMA PRIETA SANTA CRUZ MOUNTAINS 71 QUAKE CAUSES
WIDESPREAD DAMAGE IN THE SAN FRANCISCO BAY AREA 63 PEOPLE DIE

 OCT 1 1987 WHITTIER A 59 QUAKE AND A 53 AFTERSHOCK KILL EIGHT
PEOPLE

 JAN 24 1980 LIVERMORE A 58 QUAKE STRIKES THE AREA EAST OF SAN
FRANCISCO AND DAMAGES A NUCLEAR WEAPONS LABORATORY

 FEB 9 1971 SYLMAR A 65 QUAKE IN THE SAN FERNANDO VALLEY KILLS 65
PEOPLE

 JULY 21 1952 BAKERSFIELD A 77 QUAKE IN AN AREA 50 MILES NORTH OF LOS
ANGELES KILLS 12 PEOPLE

 MARCH 10 1933 LONG BEACH A 63 QUAKE KILLS 115 PEOPLE

 APRIL 1819 1906 SAN FRANCISCO EARTHQUAKE AND FIRES LEVEL THE CITY
KILLING AT LEAST 700 PEOPLE SCIENTISTS ESTIMATE THAT THE QUAKE WOULD HAVE
REGISTERED 83 ON THE RICHTER SCALE 9401180072 940118 BUSINESS BRIEF 
QUALCOMM INC FISCAL 1STQUARTER PROFIT DISAPPOINTS WALL STREET

QUALCOMM INC SAN DIEGO REPORTED FISCAL FIRSTQUARTER NET INCOME OF 5
MILLION OR 18 CENTS A SHARE REVERSING A YEAREARLIER LOSS BUT
DISAPPOINTING WALL STREET

IN THE YEAREARLIER PERIOD THE MAKER OF WIRELESS COMMUNICATIONS EQUIPMENT
POSTED A NET LOSS OF 16 MILLION OR EIGHT CENTS A SHARE HOWEVER THE
COMPANY SAW DEMAND FOR ITS PRODUCTS RISE SHARPLY AS REVENUE CLIMBED 79 TO
537 MILLION IN THE LATEST PERIOD ENDED DEC 26 1993 FROM 30 MILLION IN
THE 1992 FOURTH QUARTER

THE COMPANY HAD BEEN EXPECTED TO EARN 25 CENTS A SHARE ACCORDING TO ZACKS
INVESTMENT RESEARCH THE LOWER PERSHARE RESULTS LED TO A SELLOFF OF THE
STOCK

ON THE NASDAQ STOCK MARKET QUALCOMM'S SHARES CLOSED YESTERDAY AT 51 DOWN
3125 OR 58 9401180071 940118 TECHNOLOGY & MEDICINE APPLE SAYS
BATTAT LEAVES TO TAKE JOB AT MOTOROLA INC  BY JIM CARLTON 
STAFF REPORTER OF THE WALL STREET JOURNAL

IN THE LATEST HIGHLEVEL DEPARTURE FROM BELEAGUERED APPLE COMPUTER INC THE
COMPANY SAID AN EXECUTIVE INSTRUMENTAL IN THE SUCCESS OF APPLE'S NEW LINE OF
PORTABLE COMPUTERS IS QUITTING FOR ANOTHER JOB AT MOTOROLA INC

THE CUPERTINO CALIF COMPUTER MAKER SAID RANDY BATTAT VICE PRESIDENT OF
APPLE'S MACINTOSH DESKTOP AND POWERBOOK DIVISION IS LEAVING JAN 31 TO
BECOME VICE PRESIDENT AND GENERAL MANAGER OF MOTOROLA'S WIRELESS DATA GROUP
WHICH IS DEVELOPING PRODUCTS BASED ON THE EMERGING TECHNOLOGY FOR WIRELESS
COMMUNICATIONS

MR BATTAT SAID IT WAS A VERY TOUGH DECISION TO SWITCH TO MOTOROLA BECAUSE
HE HAD WORKED AT APPLE IN VARIOUS POSITIONS SINCE 1981 AN APPLE SPOKESMAN
SAID MR BATTAT LEFT BECAUSE HE FOUND A JOB INCREDIBLY ATTRACTIVE

UNTIL A SUCCESSOR IS APPOINTED APPLE SAID IAN DIERY EXECUTIVE VICE
PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S PERSONAL COMPUTER DIVISION
WOULD ASSUME MR BATTAT'S RESPONSIBILITIES

THE DEPARTURE OF MR BATTAT 34 YEARS OLD IS A BLOW TO APPLE AS HE IS
WIDELY LAUDED FOR HAVING HELPED BUILD THE COMPANY'S POWERBOOK PORTABLE
COMPUTER INTO A 1 BILLIONAYEAR BUSINESS MR BATTAT WAS ALSO A PART OF
APPLE'S INITIAL HUGE SUCCESS IN INTRODUCING THE MACINTOSH COMPUTER

I ALWAYS FELT HE WAS A REAL VISIONARY SAID TIM BAJARIN PRESIDENT OF
CREATIVE STRATEGIES A SAN JOSE CALIF INDUSTRY CONSULTING FIRM IT'S A
REAL LOSS FOR APPLE BUT A REAL WIN FOR MOTOROLA

APPLE LATELY HAS FALLEN ON SOME HARD TIMES BECAUSE ITS MARKETSHARE GROWTH
HAS LAGGED BEHIND BIG COMPETITORS LIKE INTERNATIONAL BUSINESS MACHINES CORP
AND COMPAQ COMPUTER CORP AND IT HAS STUMBLED IN INTRODUCING NEW PRODUCTS
LIKE THE HANDHELD NEWTON MESSAGEPAD APPLE HAS BEEN FRANTICALLY CHOPPING
MACINTOSH PRICES TO BOOST SALES AND IN MARCH WILL LAUNCH A NEW LINE OF
MACINTOSHES BASED ON A POWERFUL NEW MICROPROCESSOR CALLED POWERPC

OTHER RECENT DEPARTURES FROM APPLE INCLUDE MICHAEL PUETTE WHO SOME SAID
WAS FORCED OUT OF HIS JOB AS PRESIDENT OF APPLE'S US MARKETING ARM ALBERT
A EISENSTAT APPLE'S FORMER EXECUTIVE VICE PRESIDENT AND AN INSIDE DIRECTOR
SINCE 1985 WHO CLAIMS HE WAS FORCED OUT LAST YEAR BY MICHAEL SPINDLER THE
NEW CHIEF EXECUTIVE OFFICER AND JOHN SCULLEY THE FORMER CEO WHO MR
EISENSTAT HAS CONTENDED WAS FORCED OUT BY THE BOARD LAST YEAR 9401180070
940118 WORLD MARKETS TOKYO EQUITIES GIVE UP 13 ON PROFITTAKING 
LONDON PRICES GAIN ON OUTLOOK FOR SMALL STOCKS  A WALL STREET
JOURNAL ROUNDUP

TOKYO SHARES DROPPED 13 MONDAY AS JAPANESE CORPORATIONS AND FINANCIAL
INSTITUTIONS UNLOADED POSITIONS TO TAKE PROFITS AFTER THE MARKET'S RECENT
RUNUP LONDON PRICES GAINED LED BY SMALLER ISSUES AS INVESTORS FOCUSED ON
THE ECONOMIC RECOVERY UNDER WAY IN BRITAIN

SYDNEY STOCKS JUMPED TO A SIXYEAR HIGH WHILE MANY ASIAN BOURSES WERE HIT
BY PROFITTAKING

WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11303 DOWN 021 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN
MARKETS AND HIGHER EUROPEAN MARKETS

PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 16297 UP 311 OR 195 WITH GOLD MINES OF KALGOORLIE
OF AUSTRALIA POSTING A 12 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS
TRAILED AT 22725 DOWN 2168 OR 871 WITH HIGHLANDS & LOWLANDS OF
MALAYSIA SLIDING 12 IN LOCAL CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 39644 POINTS FRIDAY
RETREATED 24833 TO 1872537 IN TRADING TUESDAY THE NIKKEI ROSE 3741
POINTS TO CLOSE THE MORNING SESSION AT 1876278 MONDAY'S FIRSTSECTION
VOLUME WAS ESTIMATED AT A THIN 280 MILLION SHARES COMPARED WITH 4687
MILLION SHARES IN THE PREVIOUS SESSION LOSERS OVERWHELMED GAINERS 701333
THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH
CLIMBED 2215 POINTS FRIDAY FELL 971 TO 151591

COMING AFTER TWO WEEKS OF NEARLY UNINTERRUPTED GAINS TOKYO'S DECLINE WAS
VIEWED AS A RELATIVELY POSITIVE CORRECTION OVERSEAS INVESTORS AGAIN WERE
NET BUYERS THOUGH THEIR PURCHASING SLOWED FROM LAST WEEK WHEN THEY WERE
THE DRIVING FORCE BEHIND THE MARKET'S 800POINT RALLY AFTER A SHARP
ARBITRAGERELATED PLUNGE AT MONDAY'S OPENING SHARES STEADIED WITH A BRIEF
BURST OF AFTERNOON BUYING PUSHING THEM HIGHER BEFORE DOMESTIC SALES KNOCKED
THEM BACK AT THE CLOSE BUT PARTICIPANTS SAID SENTIMENT REMAINED POSITIVE
ABOUT PROSPECTS FOR SWIFT PARLIAMENTARY PASSAGE OF JAPANESE POLITICALREFORM
LEGISLATION A PRECURSOR TO MEASURES TO BREATHE LIFE INTO THE STAGGERING
ECONOMY

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 72
POINTS TO 34078 THOUGH THIS WAS DOWN FROM A 205POINT INTRADAY GAIN THE
FT 30STOCK INDEX ROSE 34 POINTS TO 26155L VOLUME WAS 8083 MILLION
SHARES COMPARED WITH 102 BILLION SHARES IN THE PREVIOUS SESSION

THE TRADING TREND WAS LED BY THE FUTURES MARKET WHERE A LATE RETREAT PUSHED
FT100 PRICES DOWN AND ATTENTION SHIFTED TO FTSE 250 STOCKS WHICH HAVE
SMALLER CAPITALIZATIONS THAN THE 100 BIG ISSUES THE 250SHARE INDEX CLOCKED
A 331POINT RISE TO 39488 ITS SECOND CONSECUTIVE RECORD HIGH THE TOP
STOCKS ARE ALREADY HIGHLY VALUED AND INVESTORS AGAIN MOVED TO THE SMALLCAP
ISSUES WHICH WERE HIT HARDEST BY RECESSION AND ARE BELIEVED TO BE
POSITIONED TO BENEFIT THE MOST FROM ECONOMIC RECOVERY FOR THE SMALL STOCKS
LOW INTEREST RATES HAVE SLASHED BORROWING COSTS ALLOWING THEM TO EXPAND TO
MEET GROWING DEMAND AND TO POST SOLID EARNINGS INDEED THE BRITISH
GOVERNMENT YESTERDAY REPORTED THAT INFLATION REMAINED SUBDUED WHILE GROWTH
CONTINUED

IN FRANKFURT PRICES FELL THE DAX 30STOCK INDEX DECLINED 444 POINTS TO
213738 AS BLUE CHIPS WERE STILL AILING FROM DISAPPOINTING CORPORATE NEWS
LAST WEEK BUCKING THE TREND METALLGESELLSCHAFT SOARED 27 MARKS OR 13 TO
241 MARKS 13776 AFTER THE METAL AND ENGINEERING COMPANY WAS RESCUED
FROM A BANKRUPTCY FILING WHEN MAJOR CREDITOR BANKS OVER THE WEEKEND AGREED
TO A PACKAGE OF 34 BILLION MARKS 194 BILLION IN EQUITY AND CREDIT

IN PARIS AFTER CHALKING UP MODERATE EARLY GAINS EQUITIES SHED 12
DRAGGED LOWER BY HEAVY SELLING IN INDEX FUTURES SALES FROM COMPUTERGUIDED
PROGRAMS KICKED IN LATE IN THE SESSION AND HEAVY SELLING ON THE FUTURES SIDE
PUSHED BLUE CHIPS SHARPLY LOWER TRADERS SAID A US INVESTMENT BANK WAS A
MAJOR SELLER IN INDEX FUTURES

IN AMSTERDAM PRICES ROSE THOUGH WITH A WEAK WALL STREET OPENING SOME
GLOBALLY TRADED DUTCH MULTINATIONALS COULDN'T HOLD THEIR EARLY GAINS AND
FINISHED WITH DECLINES IN GENERAL THOUGH THE MARKET WAS UNDERPINNED BY
THE LONDON BOURSE'S RISE THE STEADY DOLLAR AND NEWS SUNDAY THAT THE DUTCH
GOVERNMENT PLANNED TO USE A TAXREVENUE WINDFALL TO REDUCE PERSONAL
INCOMETAX RATES THIS YEAR

IN MILAN SHARES CLIMBED 19 FOLLOWING WEEKEND DECISIONS TO DISBAND ITALY'S
PARLIAMENT AND HOLD ELECTIONS MARCH 27 HELPING TO CLEAR THE SLATE IN THE
COUNTRY'S SCANDALTAINTED POLITICAL ARENA THE MOVE ALLOWED THE BOURSE TO
TURN TO THE ECONOMY WHICH IS EXPECTED TO MANAGE A SLOW RECOVERY THIS YEAR
AS INTEREST RATES EASE

IN STOCKHOLM THE MARKET SURGED BROADLY TO A RECORD FOR THE SECOND SESSION
IN A ROW IN EXTREMELY HEAVY TRADING THE CLIMB WAS PACED BY FORESTRY ISSUES
WHICH ARE TO RAISE PRICES ON SEVERAL PRODUCTS THIS SPRING AND BLUECHIP
INDUSTRIALS WHICH GAINED FROM ROSY PROFIT FORECASTS

IN ZURICH PRICES FIRMED SOLIDLY LED BY CYCLICAL BANKING AND SOME CHEMICAL
ISSUES STILL THE FINISH WAS OFF THE DAY'S HIGHS AFTER FRANKFURT'S WEAK
SHOWING PROMPTED SCATTERED PROFITTAKING ON THE SWISS BOURSE AND THE
INSURANCE SECTOR WAS HURT IN THE FINAL HOUR ON NEWS OF AN EARTHQUAKE IN LOS
ANGELES

IN SYDNEY SHARE PRICES SURGED 14 TO THEIR HIGHEST LEVELS SINCE THE GLOBAL
STOCK MARKET CRASH IN OCTOBER 1987 SUPPORTED BY A RISE IN THE PRICE OF GOLD
AND BUYING BY OFFSHORE INVESTORS IN HONG KONG SHARES ENDED WITH MILD GAINS
IN A THEMELESS SESSION MARKED BY CHOPPY DEALINGS AFTER SPECTACULAR DROPS
LAST WEEK ENDING IN A BIG GAIN FRIDAY

IN SINGAPORE PRICES RECOVERED FROM THE DAY'S LOWS BUT STILL FINISHED WITH A
11 LOSS IN MODERATELY THIN DEALINGS SELLING WAS REINFORCED BY LIMITED
BUYING AS BROKERAGE HOUSES CONTINUED TO PUT A CAP ON TRADES AND MANY
INSTITUTIONAL INVESTORS STAYED SIDELINED BECAUSE OF MARKET VOLATILITY IN
KUALA LUMPUR STOCKS SLUMPED 26 IN BRISK DEALINGS AS EDGY INVESTORS IN A
BID TO REDUCE THEIR EXPOSURE TOOK PROFITS AFTER FRIDAY'S SOARING REBOUND

IN TAIPEI STOCKS SLIPPED IN ACTIVE TURNOVER AS INVESTORS RAKED IN PROFITS
FOLLOWING THE 56 SURGE IN THE PREVIOUS SESSION IN MANILA EQUITIES ALSO
EASED ON PROFITTAKING IN SEOUL SHARES FELL AFTER SWINGING WILDLY IN
REACTION TO CORPORATE NEWS IN BANGKOK STOCKS SANK 28 IN MODERATELY
ACTIVE TRADING AFTER REBOUNDING FRIDAY PARTICIPANTS WERE NERVOUS AFTER
STOCK INDEXES IN THE REGION FELL EARLIER IN THE DAY

AMONG OTHER CORPORATE DEVELOPMENTS IN PARIS EUROTUNNEL LOST 29 FRENCH
FRANCS OR 54 TO 507 FRANCS 854 AFTER TRANSMANCHE LINK THE
FRANCOBRITISH CONSORTIUM OF CONTRACTORS FOR THE TUNNEL UNDER THE ENGLISH
CHANNEL REOPENED THE UNRESOLVED QUESTION OF WHO WILL ABSORB BILLIONS OF
FRANCS IN COST OVERRUNS ON THE PROJECT AGREEMENT MUST BE REACHED IN FIVE
MONTHS BEFORE AN ARBITRATION PANEL TAKES OVER

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
9401180069 940118 TECHNOLOGY BRIEF HEWLETTPACKARD CO COMPANY TO
UNVEIL TODAY LOWER COST WORKSTATION

HEWLETTPACKARD CO AS PART OF ITS STRATEGY TO PUSH INTO LOWEND COMPUTER
MARKETS PLANS TO UNVEIL TODAY A LOWER COST WORKSTATION

THE COMPUTER CALLED THE HP 9000 MODEL 712 IS THE FIRST OF A NEW
WORKSTATION LINE CODENAMED GECKO THAT IS BASED ON A NEW HP MULTIMEDIA CHIP
AND THE HP VERSION OF THE UNIX OPERATING SYSTEM IT CAN DISPLAY FULLMOTION
VIDEO WHICH COULD ALLOW BUSINESS CUSTOMERS TO DO VIDEO CONFERENCING AT
THEIR DESKS LIST PRICES ON THE MACHINE START AT 3995 ONLY SLIGHTLY MORE
THAN LESS POWERFUL PERSONAL COMPUTERS BASED ON INTEL CORP'S NEW PENTIUM
CHIP

HP BASED IN PALO ALTO CALIF AND OTHER MAKERS OF WORKSTATIONS 
POWERFUL COMPUTERS WITH FANCY GRAPHICS FAVORED BY ENGINEERS HAVE BEEN
BATTLING ONE ANOTHER TO WOO CUSTOMERS IN THE LOW END OF THE MARKET USUALLY
THE TURF OF NO 1 WORKSTATION MAKER SUN MICROSYSTEMS INC THEY HAVE ALSO
BEEN LOWERING PRICES TO BE ABLE TO COMPETE BETTER WITH THE MOST POWERFUL
PCS 9401180068 940118 SOUTHERN CALIFORNIA EARTHQUAKE INSURERS GET
READY FOR A FLOOD OF CLAIMS  BY GREG STEINMETZ STAFF REPORTER OF
THE WALL STREET JOURNAL

INSURANCE COMPANIES BRACED FOR AN ONSLAUGHT OF CLAIMS FROM
EARTHQUAKERAVAGED LOS ANGELES THAT SOME EXPERTS SAID COULD REACH 1
BILLION BUT THE INDUSTRY IS EXPECTED TO ESCAPE SERIOUS FINANCIAL DAMAGE
BECAUSE OF THE NATURE OF EARTHQUAKE COVERAGE

EARLY ESTIMATES WERE THAT LOSSES COULD CLIMB ABOVE THE 960 MILLION IN
CLAIMS INSURERS HAD FROM THE 1989 SAN FRANCISCO EARTHQUAKE BECAUSE THE
AFFECTED AREA IS MORE DENSELY POPULATED BUT WHATEVER THE TOTAL IN LOS
ANGELES IT WILL CERTAINLY PALE BESIDE THE 165 BILLION IN CLAIMS PAID OUT
ON HURRICANE ANDREW

EARTHQUAKE INSURANCE IN PLACES LIKE SOUTHERN CALIFORNIA IS SO EXPENSIVE THAT
INDUSTRY EXPERTS ESTIMATE THAT ONLY ABOUT A QUARTER OF CALIFORNIA HOMEOWNERS
HAVE COVERAGE AND FOR THOSE WHO DO MANY POLICIES CARRY HIGH DEDUCTIBLES
THAT HELP MITIGATE THE INSURANCE INDUSTRY'S LOSSES INSURED HOMEOWNERS WHO
LACK EARTHQUAKE COVERAGE ARE STILL COVERED FROM FIRES AND LOOTING THAT
RESULT FROM THE QUAKE

MANY BIG COMPANIES IN THE AREA CARRY EARTHQUAKE INSURANCE WHICH OFTEN
INCLUDES COVERAGE FOR LOST PROFITS IF OPERATIONS ARE FORCED TO SHUT DOWN
SMALL COMPANIES HOWEVER TEND TO AVOID SUCH COVERAGE BECAUSE OF THE COST
INSURANCE EXPERTS ALSO EXPECT FEWERTHANUSUAL CLAIMS FROM BUSINESSES
BECAUSE MANY COMPANIES WERE CLOSED FOR THE MARTIN LUTHER KING JR HOLIDAY

BECAUSE THE INDUSTRY HAS INSULATED ITSELF IT WOULD HAVE TO BE THE SORT OF
QUAKE THAT TOPPLED BUILDINGS BEFORE THERE WOULD BE MAJOR LOSSES SAID
MICHAEL SMITH A STOCK ANALYST WITH LEHMAN BROTHERS I DON'T THINK IT WILL
BE A MAJOR LOSS EVENT FOR THE INDUSTRY

THE SAN FRANCISCO EARTHQUAKE IN 1989 THE COSTLIEST EARTHQUAKE IN US
HISTORY CAUSED 7 BILLION IN TOTAL DAMAGES BUT INSURERS PAID ONLY A
FRACTION OF THAT THIS EARTHQUAKE WILL BE MATERIAL FOR A FEW COMPANIES BUT
IT WON'T BE SOLVENCYTHREATENING SAID AM BEST CO SENIOR VICE PRESIDENT
JOHN SNYDER

SPECIFIC INSURERS SAY IT WILL BE DAYS BEFORE THEY CAN ESTIMATE THEIR LOSSES
I HAVEN'T A CLUE AT THIS MOMENT SAID CHUBB CORP VICE PRESIDENT JAY
MADIGAN IT'S MUCH TOO EARLY

WHATEVER THE TOTAL THE EARTHQUAKE IS THE LATEST IN A SERIES OF EVENTS IN
LOS ANGELES TO HIT THE INSURANCE INDUSTRY IN OCTOBER FIRES THAT WHIPPED
THROUGH THE CITY CAUSED 950 MILLION IN INSURED LOSSES THE RIOTS TWO YEARS
AGO CAUSED 775 MILLION IN LOSSES

THE BIGGEST INSURERS IN THE STATE ARE STATE FARM MUTUAL AUTOMOBILE INSURANCE
CO WITH 257 OF THE CALIFORNIA HOMEOWNERS MARKET FOLLOWED BY ALLSTATE
CORP WITH 156 FARMERS INSURANCE CO A UNIT OF BA T INDUSTRIES PLC
HAS A 135 SHARE

OTHER COMPANIES WITH SIGNIFICANT EXPOSURE ARE THE CALIFORNIA STATE
AUTOMOBILE ASSOCIATION USAA GROUP ALLIANZ AG HOLDINGS' FIREMAN'S FUND
INSURANCE CO SAFECO CORP 20TH CENTURY INDUSTRIES CHUBB AND TIG HOLDINGS
INC ACCORDING TO AM BEST

UNCERTAINTY OVER THE QUAKE DELAYED THE OPENING OF ALLSTATE STOCK AS TRADERS
SORTED OUT AN IMBALANCE IN ORDERS IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING ALLSTATE CLOSED AT 28625 DOWN 1 CHUBB CLOSED AT 77375 DOWN
375 CENTS AND TIG FELL TO 21875 DOWN 375 CENTS ON THE NASDAQ STOCK
MARKET SAFECO CLOSED AT 53875 DOWN 25 CENTS

OUR BIGGEST CONCERN WAS WORKERS COMPENSATION CLAIMS IF IT HAPPENED DURING
THE WORK HOURS SAID LOUIS PAGLIA SENIOR VICE PRESIDENT OF TIG WE WERE
FORTUNATE ABOUT THAT

REINSURANCE IN WHICH INSURANCE COMPANIES BUY PROTECTION FOR THEIR OWN
POTENTIAL LOSSES WILL SOFTEN THE BLOW FOR MANY INSURERS STATE FARM GOES
WITHOUT REINSURANCE BECAUSE ITS SIZE MAKES THE PROTECTION PROHIBITIVELY
EXPENSIVE BUT OTHER INSURERS GENERALLY HAVE COVERAGE SAFECO FOR INSTANCE
PAYS ONLY 10 OF ITS LOSSES AFTER THE FIRST 35 MILLION

IF THE QUAKE HAD BEEN EVEN MORE SEVERE INSURANCE STOCKS MIGHT HAVE RISEN
COMMERCIALINSURANCE PRICES HAVE BEEN SLIDING FOR THE PAST SIX YEARS BECAUSE
OF INTENSE COMPETITION ANALYSTS SAY DEVESTATING DISASTER LOSSES MIGHT
TRIGGER A TURNAROUND IN PRICES AS INSURERS SEEK TO RECOVER THEIR LOSSES

ANYTHING THAT WILL DESTROY CAPITAL IN THIS INDUSTRY IS GOOD FOR PRICES
SAID JOHN FIELDS A SENIOR PORTFOLIO MANAGER WITH DELAWARE MANAGEMENT CO
AN INVESTMENT MANAGEMENT FIRM BASED IN PHILADELPHIA

BUT EVEN THE 165 BILLION PAID IN CLAIMS ON HURRICANE ANDREW WASN'T ENOUGH
TO TURN THE INSURANCE CYCLE PRICES FOR PROPERTY CATASTROPHE REINSURANCE
ROSE SHARPLY AFTER THE STORM AND SOME OTHER SPECIALITY LINES FIRMED BUT
COMMERCIALLIABILITY INSURANCE FOR INSTANCE CONTINUED TO FALL THIS WILL
NOT BE THE KIND OF EVENT THAT TURNS THE CYCLE IN ITSELF SAID LEHMAN
BROTHER'S MR SMITH

INSURANCE COMPANIES DON'T LIKE TO INSURE AGAINST EARTHQUAKES BECAUSE THEY
ARGUE THEY CAN'T SPREAD THE RISKS THAT'S BECAUSE ONLY THE HOMEOWNERS MOST
AT RISK THOSE WHO LIVE ALONG THE FAULT LINES BUY IT

FOR THE PAST FIVE YEARS CALIFORNIA HAS ORDERED THAT INSURERS OFFER IT AS AN
OPTION THE COST FOR EARTHQUAKE PROTECTION ADDS 150 TO 300 A YEAR TO THE
ANNUAL COST OF AN AVERAGE POLICY WHICH WITHOUT EARTHQUAKE PROTECTION COSTS
ABOUT 450 ACCORDING TO THE INSURANCE INFORMATION INSTITUTE

TO KEEP COSTS DOWN THE POLICIES FEATURE DEDUCTIBLES OF UP TO 10 ON THE
AMOUNT COVERED A HOME VALUED AT 300000 WOULD HAVE TO SUSTAIN 30000 IN
DAMAGES BEFORE THE INSURER PAYS

INSURANCE COMPANIES SENT TEAMS OF ADJUSTERS INTO THE AFFECTED AREAS
YESTERDAY BUT THEIR RESPONSE WAS SLOWED BECAUSE OF DAMAGE SUSTAINED AT
THEIR OWN FACILITIES 9401180067 940118 BUSINESS BRIEF AMES DEPARTMENT
STORES INC NET INCOME FELL IN 9 WEEKS BUT OPERATING PROFIT ROSE

AMES DEPARTMENT STORES INC ROCKY HILL CONN SAID EARNINGS FOR THE NINE
WEEKS ENDED JAN 1 FELL 93 TO 622 MILLION BUT ROSE SIGNIFICANTLY ON AN
OPERATING BASIS

FOR THE YEAREARLIER PERIOD THE COMPANY REPORTED NET INCOME OF 8842
MILLION PROPELLED BY A ONETIME GAIN

THE LATEST PERIOD'S RESULTS COMPARE WITH PROFIT BEFORE EXTRAORDINARY ITEMS
OF 261 MILLION FOR THE YEAREARLIER PERIOD ENDED DEC 26 AMES WHICH
EMERGED FROM FEDERAL BANKRUPTCYLAW PROTECTION DEC 30 1992 SAID A 3912
MILLION WRITEDOWN OF ASSETS UNDER NEW REPORTING RULES STEMMING FROM ITS
EMERGENCE FROM CHAPTER 11 WAS OFFSET PARTLY BY A ONETIME 124 BILLION GAIN
FROM THE DISCHARGE OF DEBT

SALES FOR THE NINE WEEKS FELL 5 TO 5684 MILLION FROM 601 MILLION

THE COMPANY SAID IT DOESN'T EXPECT JANUARY TO BE PROFITABLE AND PREDICTED
ONLY MODEST PROFIT FOR THE YEAR ENDING JAN 29 IT PLANS TO PROVIDE
PERSHARE FIGURES WHEN IT REPORTS FOURTHQUARTER AND FULLYEAR RESULTS IN
APRIL 9401180066 940118 CORRECTIONS & AMPLIFICATIONS

SIEMENS AG'S SALES FOR THE FISCAL FIRST QUARTER ENDED DEC 31 ROSE 24 TO
173 BILLION MARKS 989 BILLION FROM 169 BILLION MARKS A YEAR EARLIER
AN ARTICLE FRIDAY INCORRECTLY STATED THAT SALES ROSE TO 13 BILLION MARKS

NAUTICA ENTERPRISES INC BASED IN NEW YORK REPORTED THAT NET INCOME IN ITS
FISCAL THIRD QUARTER ENDED NOV 30 ROSE TO 54 CENTS A SHARE FROM 36 CENTS A
SHARE A YEAR EARLIER AN ARTICLE FRIDAY ABOUT EARNINGS ESTIMATES FOR APPAREL
COMPANIES INCORRECTLY REPORTED THAT THE RESULTS WERE FOR THE COMPANY'S
FOURTH QUARTER 9401180065 940118 BUSINESS BRIEF ICH CORP 
STEPHENS TORCHMARK AGREE TO PURCHASE MAJOR STAKES

ICH CORP IN ANOTHER RESTRUCTURING MOVE SAID TWO COMPANIES AGREED TO
PURCHASE MAJOR CHUNKS OF ITS COMMON STOCK FROM ITS CONTROLLING SHAREHOLDER

STEPHENS INC A LITTLE ROCK ARK INVESTMENT BANK WILL BUY 45 MILLION
SHARES OR ABOUT 9 OF THE SHARES OUTSTANDING AND TORCHMARK CORP A
BIRMINGHAM ALA INSURANCE COMPANY WILL PURCHASE ABOUT 47 MILLION SHARES
OR NEARLY 10 FROM CONSOLIDATED NATIONAL CORP THE TWO WILL PAY 5 A SHARE

CONSOLIDATED IS AN INSURANCE HOLDING COMPANY CONTROLLED BY ROBERT T SHAW
ICH'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SPOKESMAN FOR
ICH LOUISVILLE KY SAID THE ACTIONS ARE PART OF ICH'S
RESTRUCTURING WHICH INCLUDES CUTTING DEBT AND BOLSTERING THE BALANCE SHEET
THEY ALSO STEM FROM MR SHAW'S DESIRE TO REDUCE HIS TIES TO ICH HE SAID

CONSOLIDATED WILL STILL OWN ONE MILLION COMMON SHARES OR ABOUT 2 OF THE
SHARES OUTSTANDING AND 541000 SHARES OF SERIES 1984 CLASS A PREFERRED
STOCK 9401180064 940118 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE 
AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES  BY KEVIN G
SALWEN

EXECUTIVES PUT A PERSONAL STAMP ON SPEECH PREPARATION

FRANK GRATZER HEAD OF BUSINESS MARKETS AT BELL COMMUNICATIONS RESEARCH
CORP BRINGS PEPPERMINTS AND WATER TO EACH SPEECH BUT CONSUMES NEITHER
IT'S IMPORTANT FOR ME TO KNOW THAT THEY'RE THERE HE SAYS PHILIPPE KAHN
HEAD OF BORLAND INTERNATIONAL READS ABOUT GREAT SPEECHES AND ORATORS HIS
ROLE MODEL PHYSICIST RICHARD FEYNMAN WHO TURNED DULL TOPICS INTO
INTERESTING TALKS

WILFRED CORRIGAN CHIEF EXECUTIVE OF LSI LOGIC CORP WRITES HIS SPEECHES ON
YELLOW LEGAL TABLETS BUT RARELY REFERS TO THE TEXT DURING THE TALK HIS
MILPITAS CALIF COMPANY HIRES A CONSULTANT TO HELP EXECUTIVES IRON THE
UMS AND AHS OUT OF THEIR TALKS

HUMOR IS A MUST BUT BE CAREFUL SAYS BRADFORD SMITH III
SECRETARYTREASURER OF AW COMPUTER SYSTEMS INC MOUNT LAUREL NJ POKE
FUN AT YOURSELF HE SAYS BUT NEVER AT THE AUDIENCE

SALES PEOPLE TAKE A VARIETY OF COMPANIONS ON BONUS TRIPS

TOP PRODUCERS LONG HAVE BEEN ENCOURAGED TO TAKE SPOUSES ON TRIPS AWARDED FOR
MEETING SALES GOALS NOW SOME COMPANIES HONE POLICIES TO ACCOUNT FOR
DIFFERENT PARTNERS NEXT YEAR XEROX CORP WILL INCLUDE SIGNIFICANT OTHERS
ON ITS PRESIDENT'S CLUB TRIP UNUM CORP PORTLAND MAINE REQUIRES
COMPANIONS TO BE AT LEAST 21 YEARS OLD AND PARTNERS IN MEANINGFUL
RELATIONSHIPS DEFINED AS PLAYING A SIGNIFICANT ROLE IN EMPLOYEES'
BUSINESS SUCCESS

STILL MOST COMPANIES TAKE A HANDSOFF ATTITUDE AT DIGITAL EQUIPMENT CORP
WHICH HAS NO RESTRICTIONS SOME WINNERS BRING THEIR MOTHERS ABOUT 99 OF
COMPANIONS ON TRIPS SPONSORED BY PREPAID LEGAL SERVICES INC ADA OKLA
ARE SPOUSES AT BEAUTICONTROL INC DALLAS WINNERS CAN BRING WHOMEVER THEY
LIKE

A BATTLE ROYAL BREWS OVER A PLAN TO TIGHTEN WORKPLACE HEALTH AND SAFETY
LAWS

THE LABOR DEPARTMENT BACKS A CAPITOL HILL PLAN THAT WOULD FORCE COMPANIES
WITH 11 OR MORE WORKERS TO SET UP EMPLOYEESAFETY TEAMS THE BILL ALSO WOULD
BOOST CRIMINAL PENALTIES FOR SAFETY VIOLATIONS AND EXTEND SAFETY LAWS TO
PUBLIC EMPLOYEES UNIONS LAUD THE BILL SPONSORED BY SEN EDWARD KENNEDY OF
MASSACHUSETTS AND REP WILLIAM FORD OF MICHIGAN BOTH DEMOCRATS

BUT BUSINESS RAGES THAT IT WAS DUPED BY THE WHITE HOUSE THERE'S BEEN NO
GOOD FAITH ON THEIR PART NO ACKNOWLEDGMENT OF OUR CONCERNS SEETHES PETE
LUNNIE OF THE NATIONAL ASSOCIATION OF MANUFACTURERS AFTER MEETINGS WITH
EXECUTIVES GOVERNMENT OFFICIALS SURE AS HELL IGNORED EVERYTHING WE HAD TO
SAY HE COMPLAINS LABOR POLICY ASSOCIATION PRESIDENT JEFFREY MCGUINESS
SAYS IT LOOKS LIKE CLINTONITES WANT TO GO TO WAR

LABOR SECRETARY ROBERT REICH IS SET TO TESTIFY NEXT MONTH ON THE BILL WHICH
BACKERS HOPE TO MOVE THIS SPRING DESPITE REPUBLICAN OPPOSITION

THINK YOUR JOB'S TOUGH MORE THAN A THIRD OF ALL EMERGENCYROOM NURSES ARE
ASSAULTED ON THE JOB EACH YEAR AND NEARLY 20 HAVE CONSIDERED QUITTING
BECAUSE OF VIOLENCE SAYS PENNSYLVANIA STATE UNIVERSITY ASSISTANT PROFESSOR
BEVERLY SAXTON MAHONEY A FORMER EMERGENCYROOM NURSE HER STUDY OF 1209
REGISTERED NURSES SHOWED THAT 64 REPORTED AT LEAST ONE PHYSICAL ASSAULT IN
THEIR CAREERS

FATTRIMMING SKEPTICS NEARLY TWOTHIRDS OF BENEFITS EXPERTS THINK THE
CLINTON HEALTHCARE PLAN WON'T LOWER ADMINISTRATIVE COSTS ACCORDING TO A
SURVEY BY THE INTERNATIONAL SOCIETY OF CERTIFIED EMPLOYEE BENEFIT
SPECIALISTS THEY SPLIT OVER WHETHER THE WHITE HOUSE PLAN IS TOO GENEROUS
WITH ABOUT 40 SAYING IT IS AND THE SAME NUMBER SAYING IT IS JUST RIGHT

WANTED SERIOUS ADVICE ONLY THE GLASS CEILING COMMISSION A LABOR
DEPARTMENTLED PANEL PLANS HEARINGS IN LOS ANGELES CLEVELAND AND NEW YORK
TO HEAR SUCCESS STORIES OF ADVANCEMENT FOR WOMEN AND MINORITIES WE KNOW
THE SOB STORIES SAYS EXECUTIVE DIRECTOR JOYCE MILLER NOW WE WANT
CONSTRUCTIVE SUGGESTIONS

EMPLOYERS' FINANCIAL HEALTH MAY BE BETTER EXPLAINED IN PENSION REPORTS

THE LABOR DEPARTMENT SEEKS PUBLIC COMMENT ON IMPROVING PENSIONPLAN
DISCLOSURE MOST INFORMATION SENT TO RETIREMENTPLAN PARTICIPANTS HAS NOT
CHANGED SINCE THE 1970S WHEN THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
WAS WRITTEN SAYS OLENA BERG ASSISTANT LABOR SECRETARY ONE HOTBUTTON
WHETHER AN UNDERFUNDED PLAN SHOULD BE FORCED TO TELL EMPLOYEES ALL THE GORY
DETAILS

BUSINESS GROUPS CONCEDE THAT INFORMATION PROVIDED TO CURRENT AND FUTURE
RETIREES COULD USE AN OVERHAUL BUT THE GOVERNMENT COULD REALLY INCREASE
THE BURDENS ON COMPANIES WITHOUT EFFECTIVELY COMMUNICATING WHAT YOU WANT
TO COMMUNICATE SAYS LYNN DUDLEY OF THE ASSOCIATION OF PRIVATE PENSION AND
WELFARE PLANS THERE'S A FINE LINE BETWEEN EDUCATING PEOPLE AND
FRIGHTENING THEM

MUCH INFORMATION ALREADY EXISTS BUT RETIREES DON'T RECEIVE IT PENSION
EXPERTS SAY COMMENTS MUST BE SUBMITTED TO THE LABOR DEPARTMENT BY FEB 25

THE CHECKOFF THE PERFECT VALENTINE'S DAY GIFT NEW YORK BUSINESSMAN SY GRU
CREATES A WALLETSIZED GUIDE OF ACTIONS THAT CONSTITUTE SEXUAL HARASSMENT
AND HOW TO AVOID THEM  WORKING WOMAN MAGAZINE PROPOSES THE HUMILIATION
APPROACH TO FIGHT HARASSMENT INSTALL XRATED SOFTWARE ON OFFENDERS'
COMPUTERS THEN TURN THE MONITORS SO ANYONE LOOKING IN THE DOOR CAN SEE THE
DISPLAY 9401180063 940118 CHICAGO BOARD OF TRADE BLOOMBERG PLAN
PROJECT

CHICAGO THE CHICAGO BOARD OF TRADE WILL ANNOUNCE TODAY THAT IT HOPES TO
JOIN FORCES WITH BLOOMBERG FINANCIAL PRODUCTS TO DEVELOP AN ELECTRONIC
TRADING SYSTEM FOR CASH GOVERNMENT SECURITIES

THE BOARD OF TRADE NOW OFFERS INVESTORS HUGELY POPULAR FUTURES AND OPTIONS
CONTRACTS BASED ON US TREASURY BONDS NOTES AND BILLS AND IT ALSO WANTS
TO TRADE THE SECURITIES THEMSELVES

UNDER THE PROPOSAL FIRMS THAT OWN MEMBERSHIPS AT THE CBOT WOULD BE ABLE TO
TRADE GOVERNMENT SECURITIES BY PUNCHING ORDERS INTO ELECTRONIC COMPUTER
TERMINALS BLOOMBERG WHICH IS BEST KNOWN FOR ITS BLOOMBERG FINANCIAL NEWS
SERVICE WOULD HANDLE THE TECHNICAL END OF THE PROJECT PEOPLE FAMILIAR WITH
THE PROPOSAL SAID

THE CBOT WILL UNVEIL ITS PLAN AT A NEWS CONFERENCE TODAY THE PEOPLE SAID IT
WILL RESEMBLE ELECTRONIC JOINT VENTURE OR EJV A SIMILAR BUT ILLFATED CBOT
PROPOSAL THAT DIED WHEN THE SECURITIES AND EXCHANGE COMMISSION DECLINED TO
GIVE THE SYSTEM ITS BLESSING

TO MAKE THE NEW PROPOSAL A REALITY THE BIG CHICAGO EXCHANGE AND BLOOMBERG
WILL NEED APPROVAL FROM THE SEC 9401180062 940118 SOUTHERN CALIFORNIA
EARTHQUAKE MANY BUSINESSES ARE DISRUPTED BUT MOST DAMAGE IS NEAR
EPICENTER  A WALL STREET JOURNAL ROUNDUP

MANY BUSINESSES WITH OPERATIONS IN LOS ANGELES WERE DISRUPTED BY THE
EARTHQUAKE COMPANIES SHUT PLANTS AND OFFICES RETAILERS REPORTED HEAVY
DAMAGE TO SOME STORES AND AIRLINES CANCELED OR DELAYED FLIGHTS

BUT THE DAMAGE APPARENTLY WASN'T WIDESPREAD WHILE BUSINESSES CLOSE TO THE
QUAKE'S EPICENTER WERE HIT HARD OFFICES JUST 20 MILES AWAY WERE UNTOUCHED
ALSO THE EARTHQUAKE OCCURRED AT 431 AM PST A TIME WHEN TRAFFIC WAS
LIGHT AND ON A DAY WHEN MANY WORKERS WERE OFF FOR THE MARTIN LUTHER KING
JR HOLIDAY

NEVERTHELESS IT WAS DIFFICULT TO ASSESS THE FULL EXTENT OF THE DAMAGE AND
IT WASN'T CLEAR WHEN MANY BUSINESSES WOULD GET BACK TO NORMAL LOS ANGELES'S
CHIEF OF POLICE AT A NEWS CONFERENCE YESTERDAY URGED BUSINESSES TO REMAIN
CLOSED TODAY

THE LOCAL PHONE NETWORK EMERGED FROM THE QUAKE RELATIVELY INTACT BUT
CALLING INTO AND OUT OF THE AREA WAS DIFFICULT TO IMPOSSIBLE THROUGHOUT THE
DAY BECAUSE OF THE HEAVY VOLUME OF CALLING MANY COMPANIES HAD DIFFICULTY
CONTACTING THEIR OPERATIONS IN THE LOS ANGELES AREA

RETAILERS WERE HIT PARTICULARLY HARD RH MACY & CO REPORTED EXTENSIVE
DAMAGE AT ITS STORES IN LOS ANGELES IT SAID EIGHT DEPARTMENT STORES IN ITS
BULLOCKS CHAIN WERE HIT WITH THE NORTHRIDGE MALL STORE AT THE VERY
EPICENTER OF THE QUAKE A MACY SPOKESWOMAN SAID THAT STORE SUFFERED
EXTENSIVE STRUCTURAL DAMAGE AND SPRINKLERS THAT WENT OFF DAMAGED SOME
MERCHANDISE MACY SAID NONE OF ITS EMPLOYEES WERE INJURED THOUGH ALL EIGHT
OF THE STORES REMAINED CLOSED YESTERDAY

DAYTON HUDSON CORP SAID 10 OF ITS MERVYN'S DEPARTMENT STORES AND SIX TO 12
OF ITS TARGET DISCOUNT STORES WERE DAMAGED A SPOKESWOMAN SAID FIVE MERVYN'S
STORES SUSTAINED A GREAT DEAL OF DAMAGE INCLUDING BUCKLED WALLS FALLEN
CEILING TILE AND WATER DAMAGE FROM SPRINKLERS WHILE TWO TARGET STORES HAD
MAJOR STRUCTURAL DAMAGE

TWO EMPLOYEES AT A TARGET STORE IN VALENCIA WERE INJURED WHEN STOCKROOM
SHELVING TOPPLED OVER ON THEM THE SPOKESWOMAN SAID THEY WERE TAKEN TO AN
AREA HOSPITAL BY AMBULANCE BUT SHE DIDN'T KNOW THE EXTENT OF THEIR
INJURIES AT ONE TARGET STORE IN GRANADA HILLS 98 OF THE CEILING TILE HAD
FALLEN THAT WOULD MEAN A LOT OF MERCHANDISE ON THE SHELVES IS ALSO DOWN
THE SPOKESWOMAN ADDED

SEARS ROEBUCK & CO SAID 10 OF ITS 27 LOS ANGELESAREA STORES SUFFERED
DAMAGE AND EIGHT REMAINED CLOSED YESTERDAY IT SAID ANOTHER WAS CLOSED
BECAUSE OF LACK OF POWER A SPOKESMAN FOR CARTER HAWLEY HALE STORES INC
SAID MANY IF NOT ALL OF THE COMPANY'S 11 STORES IN THE AREA WERE CLOSED
AS WAS THE LOS ANGELES HEADQUARTERS

IN THE LOS ANGELES BASIN POWER OUTAGES SWEPT THROUGHOUT MUCH OF THE AREA AS
TRANSMISSION SUBSTATIONS TRANSFORMERS AND POWER LINES WENT DOWN BY SOME
ESTIMATES AS MANY AS 13 MILLION PEOPLE WERE WITHOUT POWER SHORTLY AFTER
THE QUAKE OFFICIALS AT SOUTHERN CALIFORNIA EDISON THE UTILITY OPERATING
UNIT OF SCECORP INITIALLY REPORTED 750000 OF ITS APPROXIMATELY FOUR
MILLION CUSTOMERS WITHOUT POWER

BY MIDAFTERNOON 125000 OF THE UTILITY'S CUSTOMERS HAD REGAINED POWER BUT
A SPOKESWOMAN SAID UNTIL PHYSICAL INSPECTIONS OF DAMAGED AREAS HAD BEEN
COMPLETED IT WOULD BE DIFFICULT TO ESTIMATE WHEN POWER WOULD BE RESTORED TO
ALL ITS CUSTOMERS

THE EARTHQUAKE ALSO RATTLED THE INTERWOVEN ELECTRICITY GRID SYSTEM CAUSING
SCATTERED OUTAGES AS FAR NORTH AS ALBERTA AND BRITISH COLUMBIA IN IDAHO
ABOUT 110000 CUSTOMERS LOST POWER FOR THREE HOURS AS THE GRID SOUGHT TO
CORRECT LOAD PROBLEMS STEMMING FROM THE QUAKE

COMMUNICATIONS COMPANIES WERE BURDENED BY THE HEAVY VOLUME OF CALLERS IN
SOME CASES LOS ANGELES RESIDENTS HAD TO WAIT 30 SECONDS OR MORE TO GET A
DIAL TONE INCOMING CALLERS OFTEN FOUND THEMSELVES LISTENING TO A RECORDING
INDICATING THAT ALL CIRCUITS WERE BUSY THERE WERE REPORTS OF SCATTERED
BREAKS IN THE NETWORK THAT CAUSED SOME AREAS TO LOSE PHONE SERVICE BY LATE
AFTERNOON PACIFIC TELESIS GROUP'S PACIFIC BELL SAID MOST AREAS HAD FULL
PHONE SERVICE RESTORED

PACIFIC BELL WHICH HAS ABOUT 35 MILLION CUSTOMERS IN THE AFFECTED AREA
ASKED LONGDISTANCE COMPANIES AMERICAN TELEPHONE & TELEGRAPH CO MCI
COMMUNICATIONS CORP AND SPRINT CORP TO RESTRICT INCOMING CALLS TO
SOUTHERN CALIFORNIA TO HELP KEEP LINES OPEN FOR EMERGENCY OUTGOING CALLS

AT&T SAID IT LOST SOME LONGDISTANCE SERVICES INTO AND OUT OF PARTS OF LOS
ANGELES BECAUSE OF EQUIPMENT DAMAGE AND POWER FAILURE UNTIL EQUIPMENT WAS
BACK IN SERVICE AT&T WAS ASSISTING CUSTOMERS IN PLACING CALLS AND PROVIDING
ACCESS CODES SO THAT CUSTOMERS COULD PLACE THEIR CALLS OVER THE NETWORKS OF
OTHER COMPANIES INCLUDING RIVALS MCI AND SPRINT WHICH REPORTED NO NETWORK
OUTAGES

TRANSPORTATION COMPANIES ALSO WERE AFFECTED AS THE EARTHQUAKE COLLAPSED
HIGHWAYS AND DAMAGED RAIL LINES THE LOS ANGELES INTERNATIONAL AIRPORT WAS
CLOSED FOR ABOUT TWO HOURS DISRUPTING MANY FLIGHTS OTHER AREA AIRPORTS
ALSO WERE BRIEFLY CLOSED

UAL CORP'S UNITED AIRLINES SAID IT CANCELED AT LEAST 40 FLIGHTS STEMMING
FROM THE EARTHQUAKE USAIR GROUP INC'S USAIR SAID ONE OF ITS JETWAYS AT THE
AIRPORT WAS TWISTED A LITTLE BIT AND ITS TERMINAL LOST A FEW CEILING
TILES BUT BOTH AIRLINES SAID THEY BELIEVED BAD WEATHER ON THE EAST COAST
WOULD RESULT IN EVEN BIGGER DELAYS

THE EARTHQUAKE SHUT INTERSTATE 5 THE PRIMARY TRAFFIC ARTERY BETWEEN
NORTHERN AND SOUTHERN CALIFORNIA WHEN A SECTION OF ROAD COLLAPSED THE
CLOSURE CREATED LENGTHY DETOURS AND DELAYS FOR TRUCKERS WE HAVE TO REROUTE
FREIGHT TO THE EAST AND NORTH A COUPLE HUNDRED MILE DETOUR SAID A
SPOKESMAN FOR CONSOLIDATED FREIGHTWAYS INC WE'LL MOVE THE FREIGHT BUT NOT
WITHOUT EXPENSE AND NOT WITHOUT TROUBLE HE SAID

SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORP SAID A
SUBSTANTIAL SHIFT IN TRACK NEAR THE EPICENTER OF THE EARTHQUAKE DERAILED
ONE TRAIN THE COMPANY SAID THERE WERE NO INJURIES AMONG THE DERAILED CARS
WERE 16 TANK CARS THAT SPILLED 5000 GALLONS OF SULFURIC ACID AND 3000
GALLONS OF DIESEL FUEL THE COMPANY SAID VACUUM TRUCKS WERE DISPATCHED TO
THE SCENE

BUT IMPORTANT EASTWEST TRANSCONTINENTAL RAIL LINKS TO THE AREA ESCAPED THE
EARTHQUAKE WITH ONLY MINOR DELAYS AND ARE EXPECTED TO RETURN TO NORMAL
OPERATIONS TODAY RAILROAD OFFICIALS SAID

COMPUTER COMPANIES BASED IN THE LOS ANGELES AREA ESCAPED RELATIVELY
UNDAMAGED BECAUSE MOST ARE CONCENTRATED FAR SOUTH OF THE QUAKE'S EPICENTER
IN THE SAN FERNANDO VALLEY

THE OILREFINING INDUSTRY OF CALIFORNIA THE NATION'S THIRD LARGEST BEHIND
TEXAS AND LOUISIANA WAS LARGELY UNHARMED ALTHOUGH SEVERAL PLANTS LOST
POWER AND MANY PIPELINES SHUT DOWN 9401180061 940118 WHO'S NEWS 
IMMUNOMEDICS SAYS ORTLIEB IS RESIGNING AS PRESIDENT AND CHIEF

MORRIS PLAINS NJ IMMUNOMEDICS INC SAID DAVID W ORTLIEB PRESIDENT
AND CHIEF EXECUTIVE OFFICER SINCE JULY 1992 IS RESIGNING EFFECTIVE FEB 1

MR ORTLIEB 63 YEARS OLD WAS NOT AVAILABLE FOR COMMENT YESTERDAY A
SPOKESWOMAN SAID HE IS LEAVING THE COMPANY FOR PERSONAL REASONS

DAVID M GOLDENBERG 55 CHAIRMAN OF THE BOARD AND FOUNDER OF THE
BIOPHARMACEUTICAL COMPANY WILL BECOME CHIEF EXECUTIVE A POSITION HE HAS
HELD FOR MOST OF THE COMPANY'S 11YEAR EXISTENCE THE POSITION OF PRESIDENT
WILL NOT BE FILLED THE COMPANY SAID

IN ADDITION AMY FACTOR 36 VICE PRESIDENT OF FINANCE AND ADMINISTRATION
TREASURER AND SECRETARY WILL BECOME EXECUTIVE VICE PRESIDENT A NEW
POSITION MS FACTOR WILL TAKE ON SOME OF MR ORTLIEB'S TASKS IN ADDITION TO
HER CURRENT RESPONSIBILITIES THE SPOKESWOMAN SAID

MR ORTLIEB HAD BEEN A DIRECTOR OF THE COMPANY SINCE NOVEMBER 1991 AND
STEPPED IN TO HELP IMMUNOMEDICS ESTABLISH ITS MANUFACTURING FACILITY AND
LAUNCH THE COMPANY'S FIRST IMAGING AGENT DR GOLDENBERG SAID

ALTHOUGH HE HAD SIGNED A THREEYEAR CONTRACT IT WAS UNDERSTOOD THAT HE
COULD LEAVE EARLIER ONCE HE COMPLETED THE TASK DR GOLDENBERG ADDED HE
CAME IN TO HELP US AS A TEMPORARY MEASURE AND FINISHED THE TASK IN A YEAR
AND A HALF 9401180060 940118 BUSINESS BRIEF WYMANGORDON CO PACT
IS REACHED TO ACQUIRE COOPER INDUSTRIES DIVISION

WYMANGORDON CO NORTH GRAFTON MASS SAID IT AGREED TO BUY COOPER
INDUSTRIES INC'S FORGING DIVISION IN A CASH AND STOCK DEAL WITH AN
INDICATED VALUE OF 875 MILLION

UNDER TERMS WYMANGORDON WILL ISSUE 165 MILLION NEW COMMON SHARES TO
COOPER AND PAY THE HOUSTON ELECTRICAL PRODUCTS AND INDUSTRIAL EQUIPMENT
MAKER 5 MILLION IN CASH

FOLLOWING THE PROPOSED ACQUISITION WHICH IS SUBJECT TO SHAREHOLDER AND
GOVERNMENT REGULATORY APPROVAL COOPER WILL HOLD ABOUT 48 OF WYMANGORDON'S
SHARES OUTSTANDING

IN NASDAQ STOCK MARKET TRADING YESTERDAY WYMANGORDON ROSE 50 CENTS OR
10 TO 5375 IN NEW YORK STOCK EXCHANGE TRADING COOPER FELL 25 CENTS TO
50625 9401180059 940118 BUSINESS BRIEF PITTENCRIEFF COMMUNICATIONS
INC MAJORITY OWNER PLANS TO SELL ITS 54 STAKE TO ITS HOLDERS

PITTENCRIEFF COMMUNICATIONS INC ABILENE TEXAS AND THE COMPANY'S MAJORITY
OWNER PITTENCRIEFF PLC OF SCOTLAND REACHED AN AGREEMENT UNDER WHICH IT
EFFECTIVELY WOULD SPIN OFF TO ITS SHAREHOLDERS ITS 54 STAKE IN THE PUBLICLY
TRADED WIRELESS COMMUNICATIONS CONCERN

AS PART OF THE SPINOFF PITTENCRIEFF PLC SHAREHOLDERS WOULD HAVE THE OPTION
OF RECEIVING AN UNSPECIFIED AMOUNT OF CASH INSTEAD OF SHARES IN PITTENCRIEFF
COMMUNICATIONS

IF THE SPINOFF ISN'T CARRIED OUT PITTENCRIEFF COMMUNICATIONS HAS AGREED TO
BUY BACK THE SCOTTISH COMPANY'S STAKE FOR CASH

PITTENCRIEFF PLC'S MAIN BUSINESS IS OIL AND GAS

IN NASDAQ STOCK MARKET TRADING PITTENCRIEFF COMMUNICATIONS FELL 250 OR
85 TO 2675 9401180058 940118 PRICING HEALTH CARE HIGH PRICE OF
MANAGED CARE  BY STEVE SALERNO

WITH 98 BILLION IN ANNUAL REVENUES AND A SIXTH OF THE NATION'S 40 MILLION
HMO SUBSCRIBERS THE OAKLANDBASED KAISER PERMANENTE FOUNDATION HEALTH PLAN
IS CONSIDERED THE PARADIGM FOR PREPAID HEALTHCARE DELIVERY AND IT WEARS
THE LABEL PROUDLY THE LATEST KAISER ANNUAL REPORT BRIMS WITH REFERENCES TO
TOTAL QUALITY MANAGEMENT AND OTHER INDUSTRIAL BUZZWORDS A LOOK AT KAISER
HOWEVER RAISES CONCERNS ABOUT THE MEDICAL AND ETHICAL UNDERPINNINGS OF
MANAGED CARE A CORNERSTONE OF THE CLINTON HEALTH PLAN AND SEVERAL REFORM
ALTERNATIVES

THE KAISER SYSTEM IS ROOTED IN TWO CORE PRINCIPLES CUT THE FAT AND CONTROL
THE PATIENT THE FATTRIMMING SHOWS UP IN KAISER'S DOCTORPATIENT RATIO
WHICH AT 13 PER 1000 IS ROUGHLY A THIRD THE NATIONAL AVERAGE FOR
HEALTHCARE SYSTEMS AS FOR CONTROLLING THE PATIENT AT KAISER YOU CHECK
YOUR RIGHT TO CHART YOUR OWN MEDICAL COURSE AT THE DOOR THAT PRIVILEGE
FALLS TO THE MEDICAL GROUP TO WHICH YOU ARE ASSIGNED MEMBER PHYSICIANS
WEIGH THE COST OF THE PROPOSED TREATMENT AGAINST ITS PROBABLE LONGTERM
OUTCOME THIS IS THE VERY HEART OF MANAGED HEALTH CARE ENABLING KAISER AND
ITS IMITATORS TO OFFER EMPLOYERS A SUBSTANTIAL SAVINGS IN PREMIUMS IN 1992
US COMPANIES PAID 3313 PER WORKER FOR KAISERTYPE COVERAGE AS AGAINST
4080 FOR FEEFORSERVICE INSURANCE

BUT FOR CONSUMERS SUCH ECONOMIES COME AT A PRICE DESCRIPTIONS OF THE
KAISER SYSTEM ARE UNCOMFORTABLY EVOCATIVE OF A FREE CLINIC WITH ROTATING
CASTS OF DOCTORS OR NURSEPRACTITIONERS IF ONE'S COMPLAINT IS NOT DEEMED
WORTHY OF A DOCTOR'S TIME ENDLESS WAITS FOR APPOINTMENTS AND TALES OF
DOZENS OF PEOPLE STANDING IN LINE TO GIVE BLOOD OR URINE SAMPLES

KAISER'S OWN INHOUSE MAGAZINE COVERAGE REPORTED IN DECEMBER 1992 THAT
TWOTHIRDS OF SUBSCRIBERS WERE DISSATISFIED WITH THE AMOUNT OF TIME ONE MUST
SPEND ON THE PHONE TO MAKE AN APPOINTMENT AND IN FACT A RECORD 62700
SUBSCRIBERS DEFECTED FROM KAISER THAT YEAR THE COVERAGE ARTICLE CONCEDED
THAT THE EXODUS WAS PROMPTED AT LEAST IN PART BY SERVICE ISSUES AND
KAISER OFFICIALS EXPRESSED THEIR COMMITMENT TO ADDRESSING THEM

CRITICS CHARGE KAISER WITH VALUING THRIFT ABOVE THOROUGHNESS WEALTH OVER
HEALTH THERE JUST ISN'T AS MUCH OF AN INCENTIVE FOR YOU TO STAY WELL AS
THERE IS FOR THEM TO STAY PROFITABLE SAYS RICHARD MATTINGLY A SAN DIEGO
BRANCH MANAGER FOR ROBERT F DRIVER CO A GIANT IN THE FIELD OF
EMPLOYEEBENEFITS CONSULTING

CONSIDER THE CASE OF ANGELA FARNUM NOW AGE 38 MRS FARNUM FELT THE FIRST
TWINGE IN HER BREAST IN 1985 SHE PROMPTLY MADE AN APPOINTMENT WITH HER
KAISER PHYSICIAN WHO SHE SAYS DISMISSED THE PROBLEM AS FIBROCYSTIC
DISEASE A BENIGN CONDITION THE SYMPTOMS PERSISTED AND SHE REQUESTED A
MAMMOGRAM BUT ACCORDING TO MRS FARNUM HER DOCTOR SAID THERE WAS NO BASIS
FOR THE TEST EVEN CHASTISING HER FOR HER HYPOCHONDRIA WHEN SHE BECAME
PREGNANT SOON AFTER AND THE SYMPTOMS ABATED MRS FARNUM CONVINCED HERSELF
THAT DOCTOR KNOWS BEST

A FEW SPRINGS LATER WHILE NURSING HER THIRD CHILD MRS FARNUM WAS AGHAST
TO NOTE THAT THE INFANT APPEARED TO BE SPITTING UP BLOOD KAISER PHYSICIANS
AGAIN WERE DISMISSIVE SHE SAYS LATER AFTER SHE COMPLAINED OF PAIN IN THE
PELVIC AREA SHE SAYS KAISER STAFF INSISTED STILL ON THE BASIS OF A
SUPERFICIAL EXAM THAT SHE SUFFERED FROM LINGERING POSTPARTUM SORENESS ONLY
IN 1990 AFTER SHE FOUND DIMPLING IN HER BREAST A CLASSIC SIGN OF
ADVANCING CANCER WAS MS FARNUM ABLE TO OBTAIN AUTHORIZATION FOR MAGNETIC
RESONANCE IMAGING MRI THE RESULTS WERE DEVASTATING A VIRULENT CARCINOMA
HAD METASTASIZED THROUGHOUT HER SYSTEM

KAISER SPOKESMAN DANIEL DANZIG SAYS OUR CONTENTION IS THAT THE CHRONOLOGY
AND PARTICULARS OF THE FARNUM CASE ARE NOT AS DAMNING AS HER ALLEGATIONS
MAKE IT APPEAR STILL IN 1992 MRS FARNUM AND HER ATTORNEY MEREL
NISSENBERG WON A 500000 SETTLEMENT FROM KAISER

ANGELA FARNUM'S STORY IS HARDLY UNIQUE THERE'S THE WELLS FARGO TELLER WHOSE
NAGGING SCIATICA TURNED OUT TO BE A SPINAL TUMOR THAT SPREAD TO HER BRAIN
AND THE COSMETOLOGIST WHOSE CHRONIC FINGER FUNGUS TURNED OUT TO BE A
MELANOMA THESE CASES EPITOMIZE A VERY SPECIFIC TYPE OF PROBLEM ARISING
WITHIN MANAGED CARE THE OFFTHECUFF DIAGNOSIS THAT PROVES GRIEVOUSLY OFF
THE MARK

SAYS ATTORNEY SUSAN FINKELSTEIN ONE OF THE NEARDOZEN MALPRACTICE
SPECIALISTS CONSULTED FOR THIS PIECE CLEARLY WITH KAISER THERE ARE A
DISPROPORTIONATE NUMBER OF CASES RELATING TO CONTINUITY OF MEDICAL CARE OR
INADEQUATE TESTING AND FOLLOWUP

JUST HOW MUCH IS HARD TO SAY PLAN MEMBERSHIP ENTAILS AN IMPLICIT CONSENT TO
BINDING ARBITRATION KAISER'S POLICY OF PRIVATELY ADMINISTERED ARBITRATION
FRUSTRATES ANY ATTEMPTS TO RESEARCH THE TOTAL NUMBER OF MALPRACTICE CLAIMS
OR PERUSE RELEVANT TRANSCRIPTS AFTERWARD NOR FOR THAT MATTER IS THERE AN
APPEAL PROCESS

KAISER PARTISANS BRISTLE AT HAVING THEIR RECORD IMPUGNED ON THE BASIS OF
DAMNING ANECDOTES SAYS HUGH JONES SENIOR VICE PRESIDENT AND GENERAL
MANAGER OF THE SOUTHERN CALIFORNIA HEALTH PLAN IF THERE WERE A WAY TO
COMPARE THE INCIDENCE OF THOSE TYPES OF OCCURRENCES IN OUR POPULATION WITH
THE INCIDENCE IN OTHERS I THINK I'D BE VERY PROUD OF KAISER'S RECORD MR
JONES AND OTHERS CITE SURVEYS BY THE GROUP HEALTH ASSOCIATION OF AMERICA
SHOWING THAT A TYPICAL CONTINGENT OF 1000 HMO ENROLLEES AGE 65 AND OVER
WILL REQUIRE AN AGGREGATE OF ONLY 1543 DAYS OF ANNUAL HOSPITALIZATION AS
AGAINST A NATIONAL AVERAGE OF ALMOST 3000 DAYS

CRITICS THOUGH DENOUNCE SUCH STATISTICS AS TENDENTIOUS SURE IF YOU
DON'T HOSPITALIZE SICK PEOPLE THEY'LL SPEND FEWER DAYS IN THE HOSPITAL
SAYS MS NISSENBERG SOME OF THEM WILL GO STRAIGHT FROM THEIR HOMES TO THE
MORGUE

KAISER INSIDERS DO NOT DENY KEEPING A TIGHT REIN ON THE SCREENING TESTS
COLLECTIVELY REGARDED AS THE HALLMARK OF CONTEMPORARY PREVENTIVE MEDICINE
THERE ARE A LOT OF COMMON MYTHS ABOUT ROUTINE SCREENING ASSERTS KAISER
CEO DAVID LAWRENCE LIKE A PHYSICAL EXAM EVERY YEAR YOU DON'T NEED THAT
FIGURES SPECIFIC TO KAISER ARE HARD TO COME BY BUT DATA COMPILED BY THE
NATIONAL AMBULATORY MEDICAL CARE SURVEY CONFIRM THAT HMOS AND OTHER
MANAGEDCARE PLANS ARE LESS LIKELY TO AUTHORIZE HIGHTECH TESTING IN THE
CASE OF MRIS AND CT SCANS THE DIFFERENCE IS A FACTOR OF AT LEAST TWO TO
ONE

AS JUST ONE EXAMPLE MANAGEDCARE GURUS HAVE DETERMINED THAT WOMEN UNDER AGE
50 DO NOT NEED ROUTINE MAMMOGRAMS AS FOR THE REPUTEDLY SMALL NUMBER OF
WOMEN WHOSE CANCERS SUCH TESTS WOULD FIND THEY BECOME ACCEPTABLE LOSSES IN
A SYSTEM DESIGNED FOR BROADBASED COST CONTAINMENT SAYS DAN NIXON AMERICAN
CANCER SOCIETY VICE PRESIDENT FOR PROFESSIONAL EDUCATION THE LOGIC SEEMS
TO BE THAT IF A CERTAIN THERAPY IS OF DUBIOUS VALUE FOR THE MAJORITY THEN
YOU DON'T OFFER IT TO THE MINORITY IT WILL BENEFIT EITHER

OBTAINING AUTHORIZATION FOR TESTS CAN BE A SISYPHEAN UNDERTAKING EVEN FOR
SOMEONE WHO IS BLEEDING RECTALLY VERNON STORY PRESENTED EVERY CLASSIC
SYMPTOM THAT CRIED OUT FOR EVALUATION FOR COLON CANCER ACCORDING TO
MEDICAL MALPRACTICE ATTORNEY VIRGINIA NELSON MS NELSON CLAIMS THAT MR
STORY HAD PAIN THAT HE HAD THE BLEEDING THAT HE WAS A MALE IN HIS MID40S
AN AGE GROUP WHERE THIS SORT OF CANCER HAS BECOME ALL TOO PREVALENT MOST
OMINOUSLY SHE REPORTS THAT VERNON'S FATHER DIED OF THAT VERY DISEASE WHILE
IN HIS 40S EVEN SO OVER AN EIGHTYEAR PERIOD THE ATTORNEY SAYS MR STORY
WAS UNABLE TO PROD KAISER PHYSICIANS INTO TREATING HIM AS A HIGHRISK CANCER
PATIENT IN EARLY 1990 THE LAWYER SAYS HE WAS DIAGNOSED WITH STAGE 3 COLON
CANCER SAYS ANOTHER MALPRACTICE ATTORNEY I GET 15 OR 20 CALLS A YEAR FROM
PEOPLE REGARDING LATE DIAGNOSIS FOR CANCER  AT KAISER

WHY MIGHT A DOCTOR WITHHOLD TREATMENT THAT COULD BENEFIT THE PATIENT KAISER
MEDICAL GROUPS ARE EXPECTED TO HIT CERTAIN BUDGETARY TARGETS DRUMMED IN
DURING A TWO OR THREEYEAR PROBATION PERIOD GROUPS THAT STAY BENEATH THEIR
ESTABLISHED CEILING ARE REWARDED WITH AN ENDYEAR BONUS AMOUNTING TO 3 OR
4 OF ANNUAL SALARY KNOWN IN MANAGEDCARE PARLANCE AS ATRISK
COMPENSATION THOUGH FRANK MURRAY BOARD CHAIRMAN AND MEDICAL DIRECTOR OF
KAISER'S SOUTHERN CALIFORNIA PLAN CLAIMS THE FEW EXTRA PERCENTAGE POINTS DO
NOT CONSTITUTE A MEANINGFUL INCENTIVE TO ANY PARTICULAR BEHAVIORS MS
NISSENBERG FINDS IT FRIGHTENING TO THINK YOUR DOCTOR'S COURSE OF TREATMENT
MIGHT BE BASED ON HOW MUCH MONEY HE'LL HAVE LEFT OVER FOR HIMSELF AT YEAR'S
END

SAYS WALTER LAWRENCE OF THE AMERICAN CANCER SOCIETY IT'S NOT NECESSARILY
THAT THESE ARE BAD DOCTORS OR BAD PEOPLE IT'S THE CULTURE IN WHICH THEY
OPERATE A CULTURE IN WHICH EVERY DECISION IS ASSESSED IN TERMS OF
STATISTICS AND PROBABILITIES AND DOLLARS AND THEREIN LIES THE CRITICAL
FALLACY IN THIS WHOLE ATTEMPT TO APPLY TO MEDICINE THE LESSONS OF TQM AND
ADVANCED INDUSTRIALMANAGEMENT THEORY ONE DOES NOT WEIGH DECISIONS BEARING
DIRECTLY UPON LIFE AND DEATH AS ONE WOULD SAY A DECISION ON WHETHER TO
INVEST IN A GIVEN COMMODITY WE CANNOT IN GOOD CONSCIENCE REDUCE THE
PRACTICE OF MEDICINE TO THE EQUIVALENT OF A LAS VEGAS ODDS BOARD

MR SALERNO WHO LIVES IN SAN DIEGO WRITES FREQUENTLY ABOUT MEDICAL ISSUES
9401180057 940118 BUSINESS BRIEF HIGH PLAINS CORP COMPANY EXPECTS
TO REPORT FALL IN FISCAL 2NDPERIOD NET

HIGH PLAINS CORP EXPECTS TO REPORT THAT NET INCOME FELL ABOUT 18 IN ITS
FISCAL SECOND QUARTER ENDED DEC 31 SAID RAY G FRIEND CHIEF FINANCIAL
OFFICER

MR FRIEND SAID HE AGREED WITH ANALYSTS' ESTIMATES THAT THE WICHITA KAN
ETHANOL PRODUCER'S NET WOULD BE IN THE RANGE OF 17 MILLION OR 25 CENTS TO
30 CENTS A SHARE COMPARED WITH 17 MILLION OR 57 CENTS A SHARE A YEAR
EARLIER COMMON SHARES OUTSTANDING ROSE TO FIVE MILLION FROM THREE MILLION A
YEAR EARLIER

MR FRIEND BLAMED THE LOWER EARNINGS ON HIGHER GRAIN PRICES WHICH RAISED
THE COST OF PRODUCING ETHANOL ANOTHER FACTOR WAS THE DROP IN ETHANOL PRICES
CAUSED BY LOWER WHOLESALE GASOLINE PRICES HE SAID

HIGH PLAIN EXPECTS TO REPORT THAT SALES ROSE 16 TO 96 MILLION FROM 83
MILLION

FOR THE FISCAL FIRST HALF MR FRIEND EXPECTS TO REPORT THAT NET FELL 17
TO 2 MILLION OR 38 CENTS A SHARE FROM 24 MILLION OR 82 CENTS A SHARE
A YEAR EARLIER ON SALES OF 178 MILLION UP ABOUT 11 FROM 16 MILLION
9401180056 940118 BUSINESS BRIEF US BANCORP NET IN 4TH PERIOD ROSE
15 HIGH PROFIT MARGIN IS CITED

US BANCORP SAID FOURTHQUARTER NET INCOME ROSE 15 TO 671 MILLION
BUOYED BY HIGH PROFIT MARGINS AND MINIMAL CREDIT LOSSES

THE EARNINGS COMPARED WITH A YEAREARLIER 661 MILLION REPRESENT A 126
RETURN ON TOTAL ASSETS A HIGH LEVEL OF PROFITABILITY BY INDUSTRY STANDARDS
THE PORTLAND ORE BANK HAD YEAREND ASSETS OF 214 BILLION PERSHARE
EARNINGS FOR THE QUARTER WERE 64 CENTS UP FROM A YEAREARLIER 63 CENTS

FOR 1993 THE COMPANY EARNED 2579 MILLION OR 247 A SHARE UP FROM THE
PREVIOUS YEAR'S 1482 MILLION OR 145 A SHARE AN ACCOUNTING CHANGE
REDUCED 1992 NET INCOME BY 599 MILLION OR 60 CENTS A SHARE 9401180055
940118 SMALL STOCK FOCUS HOLIDAY STORM AND QUAKE CUT VOLUME BUT INDEX
SETS FOURTH STRAIGHT RECORD  BY CAITLIN MOLLISON SPECIAL TO THE
WALL STREET JOURNAL

NEW YORK RELUCTANT TO ROCK THE BOAT ON A SLOW TRADING DAY INVESTORS
CONTINUED THEIR BUYING TREND PUSHING SMALLCOMPANY STOCKS SLIGHTLY HIGHER
TO ANOTHER RECORD

THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION
ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES GAINED
062 POINT OR 024 TO END AT 26189 ITS FOURTH CONSECUTIVE RECORD

THE NASDAQ COMPOSITE INDEX JUST MISSED ITS THIRD STRAIGHT CLOSING HIGH
SLIPPING 013 POINT TO 79218 HOWEVER IT TRADED IN RECORD TERRITORY JUST
BEFORE THE CLOSE

TRADERS SAID THE COMBINATION OF THE MARTIN LUTHER KING JR HOLIDAY THE EAST
COAST STORM AND A CLOSED BOND MARKET CAUSED MANY MARKET PLAYERS TO STAY HOME
OR REFRAIN FROM MAKING LARGE MOVES

IN ADDITION THE CALIFORNIA EARTHQUAKE SHUT DOWN SOME LOS ANGELES BROKERAGE
OPERATIONS AND DAMPED SPIRIT AT OTHERS ACROSS THE COUNTRY

SOME IMMEDIATE BENEFICIARIES OF THE CALIFORNIA EARTHQUAKE APPEAR TO BE
CONSTRUCTION ISSUES AS INVESTORS PREDICTED THAT THE GROUP COULD PROFIT WHEN
CLEANUP OF THE DISASTER BEGINS

AMONG THOSE MOVING HIGHER ON THE NEW YORK STOCK EXCHANGE WERE KASLER
HOLDING A HIGHLAND CALIF BUILDER OF PUBLIC WORKS UP 1 7/8 TO 10 AND
CALMAT A LOS ANGELES PRODUCER OF CONSTRUCTION MATERIALS UP 2 3/8 TO 24
1/8

GRANITE CONSTRUCTION A WATSONVILLE CALIF CONTRACTOR FOR PUBLIC
INFRASTRUCTURE PROJECTS ROSE 2 1/2 TO 24 3/4

NASDAQ DECLINERS RAN AHEAD OF ADVANCERS 1462 TO 1424 ON NASDAQ NATIONAL
MARKET VOLUME OF 203 MILLION SHARES DOWN FROM FRIDAY'S 2542 MILLION
OVERALL VOLUME SLIPPED TO 2435 MILLION SHARES DOWN FROM 2997 MILLION ON
FRIDAY 9401180054 940118 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT
CORP FIRM USES STOCK TO ACQUIRE 199 OF VIRGIN INTERACTIVE

BLOCKBUSTER ENTERTAINMENT CORP FORT LAUDERDALE FLA SAID IT ACQUIRED A
199 STAKE IN VIRGIN INTERACTIVE ENTERTAINMENT IN EXCHANGE FOR BLOCKBUSTER
STOCK VALUED AT ROUGHLY 30 MILLION

THE ALLIANCE WITH VIRGIN WHICH DEVELOPS AND PUBLISHES VIDEOGAME SOFTWARE
COMPATIBLE WITH NINTENDO AND SEGA SYSTEMS WILL GIVE BLOCKBUSTER ANOTHER
FOOTHOLD IN THE RAPIDLY GROWING WORLD OF VIDEO GAMES

ADDITIONALLY THE MOVE FURTHER CEMENTS AN EXISTING ALLIANCE BETWEEN
BLOCKBUSTER AND VIRGIN WHICH TOGETHER HAVE BEEN DEVELOPING SOCALLED MUSIC
MEGASTORES OVERSEAS AND IN THE US

ANALYSTS AND INDUSTRY EXECUTIVES SAID CLOSELY HELD VIRGIN INTERACTIVE WHICH
IS BASED IN THE UNITED KINGDOM AND CONTROLLED BY BRITISH FINANCIER RICHARD
BRANSON IS PREPARING TO MAKE AN INITIAL PUBLIC OFFERING IN THE US EARLY
THIS YEAR

IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BLOCKBUSTER
CLOSED AT 28125 DOWN 625 CENTS 9401180053 940118 WOODWARD & LOTHROP
SEEKS PROTECTION FROM ITS CREDITORS CHAIRMAN RESIGNS  BY PATRICK
M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL

WOODWARD & LOTHROP INC THE WASHINGTON DC DEPARTMENTSTORE CHAIN OWNED
BY REAL ESTATE MAGNATE A ALFRED TAUBMAN FILED FOR PROTECTION FROM
CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE

SADDLED WITH MORE THAN 500 MILLION IN DEBT STEMMING FROM MR TAUBMAN'S
PURCHASE OF THE COMPANY AND THE LATER ACQUISITION OF JOHN WANAMAKER STORES
THE PRIVATELY HELD CHAIN KNOWN AS WOODIES TO ITS PATRONS AND SUPPLIERS 
HAD STRUGGLED WITH THE THREAT OF BANKRUPTCY FOR SEVERAL YEARS IN
INCREASINGLY COMPETITIVE MARKETS BUT IN RECENT MONTHS WOODWARD & LOTHROP
WAS HAMPERED BY INCREASINGLY NERVOUS SUPPLIERS THAT WEREN'T DELIVERING FULL
SHIPMENTS AND WERE DEMANDING PREPAYMENT FOR GOODS SHIPPED IF THEY SHIPPED
AT ALL

THE 113YEAROLD RETAILER FILED YESTERDAY IN BANKRUPTCY COURT IN NEW YORK
ALONG WITH ITS PARENT COMPANY WOODWARD & LOTHROP HOLDINGS INC IN ITS
FILING THE RETAILER REPORTED TOTAL ASSETS OF 608 MILLION AND TOTAL
LIABILITIES OF 659 MILLION UNDER CHAPTER 11 A COMPANY IS PROTECTED FROM
ITS CREDITORS WHILE IT DEVISES A PLAN TO REPAY DEBT IT CONTINUES TO
OPERATE WOODWARD & LOTHROP OPERATES 16 DEPARTMENT STORES IN THE WASHINGTON
AND BALTIMORE AREAS AND OWNS JOHN WANAMAKER WHICH OPERATES 15 DEPARTMENT
STORES IN THE PHILADELPHIA AREA

WOODWARD & LOTHROP ALSO SAID ARNOLD H ARONSON ITS CHAIRMAN AND CHIEF
EXECUTIVE SINCE 1989 STEPPED DOWN FRIDAY HE WAS SUCCEEDED BY ROBERT B
MANG 48 YEARS OLD WHO WAS PRESIDENT AND CHIEF OPERATING OFFICER MR
ARONSON YESTERDAY SAID HE HAD ATTEMPTED A MANAGEMENTLED BUYOUT OF THE
COMPANY IN RECENT MONTHS WITH UNNAMED FINANCIAL PARTNERS BUT THAT ATTEMPT
WAS UNSUCCESSFUL AT REACHING AN AGREEMENT MR ARONSON A 59YEAROLD
INDUSTRY VETERAN WHO HAS HEADED OTHER RETAIL CHAINS HE WAS FORMER CHIEF
EXECUTIVE OF THE BULLOCK'S AND SAKS FIFTH AVENUE CHAINS SAID IT WAS HIS
PERSONAL DECISION NOT TO RUN THE COMPANY IF IT FILED FOR BANKRUPTCYLAW
PROTECTION

THOUGH INDUSTRY ANALYSTS AND CONSULTANTS HAD SPECULATED WOODWARD & LOTHROP
WOULD MAKE A BANKRUPTCY FILING THE CHAIN AS LATE AS FRIDAY HAD SAID THAT
BANKRUPTCY WAS JUST ONE OF SEVERAL OPTIONS FOR A HIGHLY LEVERAGED CHAIN
THAT HAD BUILT UP BURDENSOME DEBT FROM PAST ACQUISITION COSTS

MR TAUBMAN THE BLOOMFIELD HILLS MICHBASED REAL ESTATE DEVELOPER IS THE
CHAIN'S LARGEST UNSECURED CREDITOR IN BANKRUPTCY THE COMPANY SAID MR
TAUBMAN HAS LOANED THE COMPANY 158 MILLION OVER SEVERAL YEARS IN THE FORM
OF CREDIT LINES AND HAS PARTICIPATED IN BANK CREDIT LINES OF 55 MILLION

WOODWARD & LOTHROP'S DEBT BEGAN BUILDING WHEN MR TAUBMAN ACQUIRED WOODWARD
& LOTHROP IN 1984 FOR 230 MILLION OR 6050 A SHARE TWO YEARS LATER MR
TAUBMAN THROUGH WOODIES ACQUIRED JOHN WANAMAKER FOR 183 MILLION FROM CARTER
HAWLEY HALE IN 1988 THERE WERE PUBLISHED REPORTS MR TAUBMAN HAD PUT
WOODIES UP FOR SALE IN AN ATTEMPT TO REJUVENATE THE CHAIN MR TAUBMAN IN
1989 INSTALLED NEW MANAGEMENT PICKING MR ARONSON TO HEAD THE CHAIN AND
STARTED A CAPITALEXPENDITURE PROGRAM FOR UPGRADING STORES SPENDING 200
MILLION OVER FIVE YEARS ADDING TO THE COMPANY'S DEBT

WOODWARD & LOTHROP IS OWNED BY TAUBMAN INVESTMENT CO A PRIVATE INVESTMENT
COMPANY OWNED BY MR TAUBMAN BUT ISN'T CONNECTED TO HIS TAUBMAN CENTERS
INC WHICH OWNS INTERESTS IN REGIONAL SHOPPING MALLS

IN A STATEMENT YESTERDAY MR TAUBMAN SAID THAT AS THE CHAIN'S OPERATIONS
IMPROVED IN RECENT YEARS HE HAD HOPED THE COMPANY WOULD HAVE BEEN ABLE TO
ATTRACT THE CAPITAL NECESSARY TO RESTRUCTURE ITS DEBT HE SAID HE SUPPORTED
MANAGEMENT'S DECISION TO FILE FOR BANKRUPTCYCOURT PROTECTION AND ITS PLANS
TO EMERGE FROM REORGANIZATION AS SOON AS POSSIBLE MR TAUBMAN CHAIRMAN OF
SOTHEBY'S HOLDINGS INC AND OWNER OF OTHER DIVERSE BUSINESSES ADDED THAT
THE FILING WILL NOT AFFECT MY PERSONAL AND OTHER BUSINESS INTERESTS ALL OF
WHICH ARE DOING WELL

COMPANY EXECUTIVES DESCRIBE THE CHAIN'S OPERATIONS AS HEALTHY ITS STORES
PROFITABLE AND THE COMPANY PRODUCING A POSITIVE CASH FLOW BEFORE INTEREST
PAYMENTS FOR THE FISCAL YEAR ENDED IN JANUARY 1993 WOODWARD & LOTHROP HAD
TOTAL SALES OF 855 MILLION AND EARNINGS BEFORE INTEREST TAXES
DEPRECIATION AND AMORTIZATION OF 38 MILLION A 37 INCREASE FROM A YEAR
EARLIER MANAGEMENT EXPECTS SALES AND EARNINGS IN THE CURRENT FISCAL YEAR TO
BE ABOUT EVEN WITH A YEAR EARLIER WOODWARD'S MR MANG NOTED THAT THE CHAIN
WAS STUCK WITH YEARLY INTEREST EXPENSES OF MORE THAN 50 MILLION

MR MANG SAID THE HIGH INTEREST PAYMENTS AND DIFFICULTY GETTING FULL
SHIPMENTS FROM SKITTISH SUPPLIERS PUT US IN A VERY DIFFICULT POSITION
COMPETITIVELY

THE COMPANY SAID THE BANKRUPTCY FILING WILL ALLOW IT TO RESTRUCTURE ITS
DEBT THE MERCHANT SAID BUSINESS WILL CONTINUE AS USUAL AND THAT NO STORES
WOULD BE CLOSED NOR EMPLOYEES LAID OFF BECAUSE OF THE FILING SEVERAL
SUPPLIERS TOLD THE COMPANY YESTERDAY THAT THEY WILL MAKE SHIPMENTS TO THE
CHAIN WOODWARD & LOTHROP SAID IT RECEIVED COMMITMENTS FOR 300 MILLION IN
DEBTORINPOSSESSION FINANCING FROM NEW YORK BASED CIT GROUP AN ASSETBASED
LENDER DIP FINANCING WHICH RETAILERS TYPICALLY OBTAIN WHEN OPERATING UNDER
BANKRUPTCYLAW PROTECTION SHOULD ALLOW THE CHAIN TO GUARANTEE THE PAYMENT
FOR SHIPMENT OF GOODS 9401180052 940118 TECHNOLOGY BRIEF CR BARD
INC FDA APPROVES MARKETING OF 2 NEW HEART CATHETERS

CR BARD INC WHICH IS STRUGGLING TO RECOVER FROM SCANDAL OVER ITS
HEARTSURGERY INSTRUMENTS SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG
ADMINISTRATION TO MARKET TWO NEW HEART CATHETERS IN THE US

THE MURRAY HILL NJ MEDICALDEVICE MAKER RECEIVED CLEARANCE TO MARKET ITS
AGIL AND SILK BALLOONANGIOPLASTY CATHETERS BOTH OF WHICH HAD BEEN
PENDING BEFORE THE FDA FOR MORE THAN A YEAR THE UPGRADED CATHETERS SHOULD
HELP BARD SUSTAIN ITS ESTIMATED 6 TO 7 SHARE OF THE BALLOONANGIOPLASTY
MARKET BEAR STEARNS & CO ANALYST FREDERICK A WISE SAID A PIONEER OF
BALLOON ANGIOPLASTY BARD HAD NEARLY 40 OF THE MARKET IN 1989 BEFORE
REGULATORY AND OTHER PROBLEMS LED THE COMPANY TO WITHDRAW PRODUCTS

BARD ALSO SAID IT BELIEVES IT IS CLOSE TO RESOLVING REMAINING ADMINISTRATIVE
SANCTIONS THAT MAY BE IMPOSED BY THE FDA THE COMPANY LAST FALL REACHED A
SETTLEMENT WITH THE FDA AND JUSTICE DEPARTMENT AGREEING TO PAY 61 MILLION
IN FINES RELATED TO ITS SALE OF DEFECTIVE HEART CATHETERS

BARD'S SHARES ROSE 150 TO 30 IN LATE NEW YORK STOCK EXCHANGE TRADING ON
FOUR TIMES AVERAGE VOLUME 9401180051 940118 BUSINESS BRIEF ON THE
BORDER CAFES INC FISCAL FOURTHPERIOD CHARGE TAKEN TO SETTLE CRASH
CLAIM

ON THE BORDER CAFES INC SAID IT WILL REPORT A 22 MILLION CHARGE FOR THE
FISCAL FOURTH QUARTER TO SETTLE A CLAIM RELATING TO A PLANE CRASH LAST YEAR
THAT KILLED THE COMPANY'S CHIEF EXECUTIVE

THE RESTAURANT OPERATOR SAID THE CLAIM FILED BY A WOMAN INJURED IN THE
ACCIDENT WILL BE PAID OVER SIX YEARS THE MARCH CRASH KILLED MICHAEL FIORI
THEN PRESIDENT AND CHIEF EXECUTIVE AND HIS SON WILLIAM THE PLANE'S PILOT
AND INJURED THREE OTHER PASSENGERS THE INJURED INCLUDED JULIE SIMPSON WIFE
OF COMPANY HUMANRESOURCE DIRECTOR HANK SIMPSON MRS SIMPSON SUFFERED
BROKEN RIBS AND VERTEBRAE AND LIVER INJURIES AND SUBSEQUENTLY FILED A CLAIM
FOR DAMAGES

STEPHEN D FENSTERMACHER CURRENT CHIEF EXECUTIVE WHO ALSO WAS INJURED IN
THE ACCIDENT SAID THE SETTLEMENT ENDS ALL CLAIMS RELATING TO THE CRASH

ON THE BORDER ALSO EXPECTS TO REPORT AN OPERATING LOSS FOR THE FOURTH
QUARTER ENDED JAN 3

FOR THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 98000 OR
THREE CENTS A SHARE ON REVENUE OF 66 MILLION 9401180050 940118
MARKETING & MEDIA ADVERTISING LIFE SAVERS GRABS HOLD OF TASTE 
ALLOWING NOSTALGIA TO FLOAT AWAY  BY KEVIN GOLDMAN

LIFE SAVERS HAD DUG ITSELF INTO A HOLE

THE VENERABLE CANDY SPENT YEARS SELLING ITSELF WITH WARM FUZZY COMMERCIALS
THAT EMPHASIZED NOSTALGIA AND THE GOOD FEELING OF POPPING A LIFE SAVERS INTO
YOUR MOUTH THE ONE INGREDIENT ALWAYS OMITTED HOW THE SUGARED CANDY TASTED

MEANWHILE RIVALS MENTOS AND STAR BURST HAVE CONTINUOUSLY STRESSED TASTE IN
THEIR COMMERCIALS

NOW NEW ADS FROM LIFE SAVERS AND ITS AGENCY FCB/LEBER KATZ PARTNERS THE
NEW YORK OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS RESEMBLE LUSH MUSIC
VIDEOS AND THE ADS EMPHASIZE ONLY TASTE THE LILTING MUSIC IS SUPPLIED BY
THE SOUTH AFRICAN GROUP LADYSMITH BLACK MAMBAZO WHICH BECAME POPULAR IN
THE US WITH THE PAUL SIMON ALBUM GRACELAND

LIFE SAVERS SHIFTED ITS MARKETING STRATEGY BECAUSE OF INCREASED COMPETITION
ALTHOUGH LIFE SAVERS IS THE NO 1 BRAND IN THE HARDCANDY CATEGORY IT HAS
BEEN AROUND FOR MORE THAN EIGHT DECADES THE CANDY SAYS BOB HIRSCH SENIOR
EXECUTIVE VICE PRESIDENT AT FCB/LEBER KATZ ISN'T TOP OF MIND FOR CONSUMERS
WHEN THEY'RE MAKING A BUYING DECISION

IN SUPERMARKETS LIFE SAVERS SALES FELL 45 TO 421 MILLION FOR THE
52WEEK PERIOD ENDED SEPT 11 ACCORDING TO AC NIELSEN WHILE THE ENTIRE
HARDCANDY CATEGORY HAD SUPERMARKET SALES OF 808 MILLION DOWN 54 FROM
THE YEAREARLIER PERIOD A NUMBER OF HARDCANDY BRANDS GREW SALES OF
MENTOS FOR INSTANCE ROSE 624 TO 34 MILLION IN SUPERMARKETS

WE HAVE BEEN SELLING THE LIFE SAVERS MOMENT SAYS MR HIRSCH WE HAVEN'T
COMPETED ON A FLAVOR LEVEL PAST ADS SHOWED FOUR GENERATIONS OF MEN
WATCHING A BASEBALL GAME EACH PASSING A ROLL OF LIFE SAVERS THE SLOGAN
WAS ISN'T LIFE DELICIOUS NOW MR HIRSCH SAYS HE WANTS CONSUMERS TO
WATCH THE ADS AND TASTE THE FILM

HE VERY NEARLY ACCOMPLISHES THAT TASK THERE IS NO AUTHORITATIVE VOICEOVER
NO CATCHY SLOGAN IN THE NEW ADS INSTEAD THERE ARE BEAUTIFUL SHOTS OF A
WHITE PEPOMINT LIFE SAVERS ATOP A SNOWY MOUNTAIN IN ONE COMMERCIAL THE
CANDY BREAKS LOOSE ROLLS PEACEFULLY DOWN THE MOUNTAIN AND DROPS INTO A
RIVER DISSOLVING INTO TINY CHISELED SNOWFLAKES ALL THE WHILE LILTING
VOICES SING SO REFRESHING SO COLD  SO FULL OF LIFE SAVERS

ANOTHER SPOT FOR THE FIVE FLAVORS ROLL SHOWS SUCH IMAGES AS A GREEN LIFE
SAVERS PLOPPING INTO A RIVER OF THIN LIME SLICES A RED LIFE SAVERS ROLLING
INTO WATER TO BECOME A STEM OF CHERRIES AND SLICES OF PINEAPPLE TURNING
INTO YELLOW CANDIES

THE PEPOMINT SPOT SCHEDULED TO PREMIERE TONIGHT ON CAPITAL CITIES/ABC'S
COACH WILL POP UP LATER THIS WEEK ON MORE SHOWS INCLUDING LATE SHOW
WITH DAVID LETTERMAN ON CBS THE FIVE FLAVOR SPOT WILL BE RELEASED LATER
IN THE FIRST QUARTER

THE CAMPAIGN MARKS THE RETURN OF ADVERTISING FOR LIFE SAVERS' TRADITIONAL
FLAVORS WHICH HAVEN'T BEEN ON THE AIR SINCE THE FIRST QUARTER OF 1993
SOCALLED WILD FLAVORS INCLUDING TANGY FRUITS WERE ADVERTISED LAST YEAR ON
YOUTHORIENTED NETWORKS SUCH AS MTV

LIFE SAVERS A DIVISION OF RJR NABISCO'S FOOD GROUPS DIVISION IS EXPECTED
TO SPEND MORE THAN 15 MILLION THIS YEAR AT LEAST MATCHING THE AMOUNT SPENT
IN 1992 ACCORDING TO COMPETITIVE MEDIA REPORTING WHICH TRACKS AD SPENDING

INTERESTINGLY THE NEW STRATEGY FOR LIFE SAVERS IS THE OPPOSITE OF DIET
COKE'S NEW CAMPAIGN THE COCACOLA PRODUCT INTRODUCED NEW SPOTS LAST WEEK
THAT EMPHASIZED REFRESHMENT A SPECIAL TIME OF THE DAY WHEN A CONSUMER CAN
ENJOY A DIET COKE MOMENT FOR THE PREVIOUS 12 YEARS THE SOFT DRINK
STRESSED TASTE AND FLAVOR NOW BY CONTRAST LIFE SAVERS IS ESCHEWING MAGIC
MOMENTS TO LEAN ON TASTE

FOCUS GROUPS SCREENED TWO VERSIONS OF THE PEPOMINT AD WITH THE SAME SONG
ONE WITH STRONG MUSIC SUNG BY LADYSMITH BLACK MAMBAZO ANOTHER WITH A
NAMELESS BUNCH OF JINGLE SINGERS LADYSMITH'S VARIATION WAS THE SOLID
WINNER SAYS TRISH MCHALE BUSINESS DIRECTOR FOR LIFE SAVERS IT TAKES A
PRODUCT EVERYONE KNOWS AND GIVES IT MORE REVERENCE AND MAKES IT UPLIFTING

MR HIRSCH SAYS THAT WITH THE NEW CAMPAIGN WE FEEL WE'RE INTRODUCING THE
TASTE EXPERIENCE OF LIFE SAVERS TO A WHOLE NEW GENERATION WE DON'T WANT TO
BE THOUGHT OF ONLY AS THE CANDY THEIR PARENTS GAVE THEM WHEN THEY WERE
GOOD

ADDS MS MCHALE WE'RE DOING A LOT OF THINGS TO WAKE UP AMERICA TO LIFE
SAVERS

LIFE SAVERS IS ALSO TRYING LINE EXTENSION IT ALREADY PRODUCES GUMMI SAVERS
TO COMPETE WITH THE POPULAR GUMMY BEARS SOFT CANDY AS WELL AS BREATH SAVERS
TO RIVAL MINTS SUCH AS CERTS AND TIC TAC

MOREOVER LIFE SAVERS IS LICENSING ITS NAME TO BE PLACED ON ICE POPS AND IT
IS TEAMING WITH ANOTHER RJR NABISCO BRAND ROYAL GELATIN TO TEST MARKET SIX
FLAVORS OF LIFE SAVERS GELATIN CAN WE BEAT JELLO ASKS MS MCHALE NO
BUT WE CAN EAT INTO THEIR MARKET SHARE

NOT ALL OF LIFE SAVERS' EFFORTS HAVE MET SUCCESS IN WHAT MUST HAVE SEEMED A
GOOD IDEA AT THE TIME RJR NABISCO DECIDED TO MARKET HOLES MEANT TO BE THE
DISCARDED CENTER OF TRADITIONAL LIFE SAVERS

ACCORDING TO NIELSEN SALES OF HOLES REGISTERED 125 MILLION IN THE 52WEEK
PERIOD ENDED SEPT 11 THAT WAS A DROP OF 327 INDICATING THAT THE
FLEDGING CANDY MAY BE HEADED FOR WELL A BLACK HOLE

WENDY'S INTERNATIONAL IS CRASHING THE OLYMPICS SPONSORSHIP PARTY WITH A NEW
SERIES OF ADS FEATURING COMPANY FOUNDER DAVE THOMAS AND IN A CAMEO ROLE
THE 1992 OLYMPIC FIGURESKATING CHAMPION KRISTI YAMAGUCHI

THE BURGER CHAIN'S SPONSORSHIP OF OLYMPICS COVERAGE MARKS A SHARP INCREASE
IN ITS PRESENCE DURING THE GAMES IN 1992 IF WE HAD ONE OR TWO SPOTS THAT
WOULD HAVE BEEN A LOT SAID A WENDY'S SPOKESMAN PREVIOUSLY THE CHAIN
SPENT ABOUT 50 MILLION A YEAR ON NATIONAL TELEVISION ADVERTISING TOO
LITTLE TO BUY A MAJOR BROADCAST SPONSORHIP THE SPOKESMAN SAID THIS YEAR
THAT FIGURE INCREASED TO 80 MILLION HE SAID THE SPOTS ARE SET TO START
FEB 6 DURING THE CBS NETWORK'S OLYMPICS BROADCAST 9401180049 940118
BUSINESS BRIEF SOUTHERN CO QUARTERLY DIVIDEND BOOSTED 2FOR1
STOCK SPLIT DECLARED

SOUTHERN CO INCREASED ITS QUARTERLY DIVIDEND TO 59 CENTS A SHARE FROM 57
CENTS AND DECLARED A 2FOR1 STOCK SPLIT

THE ATLANTABASED UTILITY ALSO REPORTED THAT FOURTHQUARTER EARNINGS FELL TO
133 MILLION OR 41 CENTS A SHARE FROM 141 MILLION OR 45 CENTS A SHARE A
YEAR EARLIER REVENUE ROSE TO 195 BILLION FROM 187 BILLION

DISCUSSING THE DIVIDEND INCREASE AND THE STOCK SPLIT THE COMPANY NOTED THAT
ITS SHARE PRICE HAS MORE THAN DOUBLED IN THE PAST FIVE YEARS IN COMPOSITE
TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOUTHERN CLOSED AT 42875
A SHARE UP 125 CENTS ON VOLUME OF 255500 SHARES

THE INCREASED DIVIDEND IS PAYABLE MARCH 5 TO STOCK OF RECORD FEB 7 THE
STOCK SPLIT IS SCHEDULED TO TAKE EFFECT FOR STOCK OF RECORD AT THE CLOSE OF
BUSINESS FEB 7 CURRENTLY SOUTHERN HAS ABOUT 320 MILLION COMMON SHARES
OUTSTANDING

FOR ALL OF 1993 THE COMPANY REPORTED EARNINGS OF 1 BILLION OR 314 A
SHARE COMPARED WITH 953 MILLION OR 302 A SHARE A YEAR EARLIER REVENUE
ROSE TO 849 BILLION FROM 807 BILLION 9401180048 940118 GRUMMAN PLANS
 TO CLOSE DOWN SOME FACILITIES  RESTRUCTURING IS EXPECTED TO
RESULT IN A CHARGE OF UP TO 90 MILLION  BY JEFF COLE STAFF
REPORTER OF THE WALL STREET JOURNAL

GRUMMAN CORP WILL CLOSE ABOUT ONETHIRD OF ITS FACTORY SPACE INCLUDING
SOME HISTORIC MILITARY AIRCRAFT PLANTS ON NEW YORK'S LONG ISLAND AS PART OF
A RESTRUCTURING TO BE UNVEILED TODAY

THE RESTRUCTURING IS EXPECTED TO LEAD TO A CHARGE AGAINST 1993
FOURTHQUARTER EARNINGS OF 80 MILLION TO 90 MILLION CHAIRMAN RENSO
CAPORALI SAID IN AN INTERVIEW

THE MOVE WHICH WILL ELIMINATE 45 MILLION SQUARE FEET OF THE COMPANY'S 15
MILLION SQUARE FEET OF CAPACITY WILL CENTER ON LITTLEUSED FACILTIES WITH
THE CLOSINGS MR CAPORALI SAID GRUMMAN HOPES TO SAVE 600 MILLION OVER THE
NEXT THREE YEARS AND REDUCE ITS OVERHEAD COSTS FAILURE TO LOWER OVERHEAD TO
FIT WITH THE TIMES WILL BRING YOU DOWN MR CAPORALI SAID

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GRUMMAN CLOSED AT 41875
DOWN 375 CENTS

THE RESTRUCTURING EXPECTED TO BE COMPLETED BY THE END OF 1995 WILL
ELIMINATE ABOUT 500 JOBS HOWEVER MR CAPORALI SAID MORE JOBS ARE LIKELY TO
BE CUT AS GRUMMAN COPES WITH FUTURE REDUCTIONS IN US MILITARY SPENDING
GRUMMAN'S WORK FORCE PEAKED IN 1987 AT ABOUT 33000 EMPLOYEES BUT HAS
DROPPED SINCE TO ABOUT 18000

DECLINING DEFENSE SPENDING HAS COST GRUMMAN MUCH OF ITS MILITARY AIRCRAFT
BUSINESS INCLUDING THE F14 NAVY FIGHTER WHICH WAS BUILT ON LONG ISLAND

THE COMPANY WHICH HAS DEVELOPED AN EXTENSIVE DATASYSTEMS BUSINESS REMAINS
A PLAYER IN THE DEFENSE INDUSTRY WITH BATTLECOORDINATION AND SURVEILLANCE
AIRCRAFT SUCH AS JSTARS JOINT SURVEILLANCE TARGET ATTACK RECOGNITION
SYSTEM AND THE E2C HAWKEYE WITH THE RESTRUCTURING BOTH PLANES WILL BE
BUILT IN THE FUTURE AT GRUMMAN PLANTS IN FLORIDA AND LOUISIANA

FOREMOST AMONG THE IMPENDING PLANT CLOSINGS IS THE SHUTDOWN OF TWO LONG
ISLAND FACILITIES A 15MILLIONSQUAREFOOT PLANT IN CALVERTON AND A DETAIL
PARTS FACILITY IN BETHPAGE

GRUMMAN WILL KEEP ITS HEADQUARTERS ALONG WITH ITS PRIMARY ENGINEERING AND
TECHNICAL STAFF AT BETHPAGE WHERE IT WILL EMPLOY ABOUT 8000 WORKERS

MR CAPORALI SAID 1993 REVENUE WILL BE DOWN ABOUT 10 FROM 349 BILLION IN
1992 WHEN ASKED ABOUT ANALYSTS' ESTIMATES THAT THE COMPANY WILL POST
EARNINGS FROM CONTINUING OPERATIONS OF 335 TO 340 A SHARE FOR 1993 AND
350 TO 375 A SHARE FOR 1994 HE SAID DOESN'T EXPECT ANY BIG SURPRISES
FOURTHQUARTER AND FULLYEAR RESULTS ARE SCHEDULED TO BE RELEASED NEXT WEEK

IN THE FOURTH QUARTER OF 1992 GRUMMAN HAD A NET LOSS OF 29 MILLION OR
NINE CENTS A SHARE ON SALES OF 9308 MILLION FOR THE FIRST NINE MONTHS OF
1993 THE COMPANY HAD NET INCOME OF 843 MILLION OR 245 A SHARE ON
SALES OF 241 BILLION 9401180047 940118 MARKETING & MEDIA VIACOM
APPEARS READY TO BOOST ITS BID FOR PARAMOUNT BY FRIDAY'S DEADLINE  
BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL

VIACOM INC IS PREPARING TO RAISE ITS 93 BILLION BID FOR PARAMOUNT
COMMUNICATIONS INC TO STAY ALIVE IN THE CONTEST WITH QVC NETWORK INC
ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION

THE NEW BID COULD COME AS EARLY AS TODAY ACCORDING TO ONE OF THE PEOPLE

VIACOM COULD BOOST THE VALUE OF ITS BID BY RAISING THE CASH COMPONENT
CURRENTLY AT 105 A SHARE FOR 501 OF PARAMOUNT SHARES IT COULD ATTEMPT TO
BOLSTER THE VALUE OF SECURITIES BEING OFFERED FOR THE REMAINING 499 OR IT
COULD DO A COMBINATION OF BOTH

IF VIACOM DOESN'T RAISE ITS BID BY 5 PM FRIDAY QVC COULD WIN THE CONTEST
PROVIDED THAT HOLDERS OF 501 OF PARAMOUNT STOCK TENDER THEIR STOCK TO
QVC'S BID CURRENTLY VALUED AT 101 BILLION OR ABOUT 8437 A SHARE

IN CONVERSATIONS WITH INVESTORS AND ANALYSTS LAST WEEK VIACOM EXECUTIVES
AND ADVISERS HINTED THAT THEY WOULD RETURN WITH A HIGHER BID INDICATING
THAT THEY WOULDN'T HAVE GONE TO THE TROUBLE OF PUTTING TOGETHER THE 84
BILLION ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP JUST TO WALK AWAY
FROM THE PARAMOUNT CONTEST THE BLOCKBUSTER DEAL PROVIDES VIACOM WITH 125
BILLION IN CASH TO SWEETEN THE CASH PORTION OF ITS BID

MY BELIEF IS THEY'LL COME BACK WITH A HIGHER BID BY FRIDAY SAID
ENTERTAINMENT INDUSTRY ANALYST LISBETH BARRON OF SG WARBURG & CO IT
WOULD BE SHOCKING IF THEY DIDN'T

VIACOM USED A DEVICE CALLED A VARIABLE COMMON RIGHT IN ITS PROPOSED
ACQUISITION OF BLOCKBUSTER THAT DEVICE IS SUPPOSED TO PROVIDE EXTRA
COMPENSATION TO BLOCKBUSTER HOLDERS IN THE EVENT OF A DECLINE IN VIACOM
SHARES SOME TRADERS HAVE SPECULATED THAT VIACOM COULD OFFER SOMETHING
SIMILAR TO PARAMOUNT HOLDERS

QVC SHARES ROSE 875 CENTS TO 4350 ON THE NASDAQ STOCK MARKET YESTERDAY
AMID CONTINUED SPECULATION THAT VIACOM WOULD COME BACK WITH A HIGHER OFFER
VIACOM CLASS B NONVOTING SHARES FELL 375 CENTS TO 39125 YESTERDAY ON THE
AMERICAN STOCK EXCHANGE EACH BIDDER'S STOCK TENDS TO RISE IF IT APPEARS
THAT IT WILL LOSE THE CONTEST AND TENDS TO FALL IF IT APPEARS THAT IT WILL
WIN QVC'S STOCK HAS RISEN STEADILY FROM 3925 ON JAN 10 AFTER VIACOM
MADE A LOWERTHANEXPECTED BID FOR PARAMOUNT

MARK DICKSTEIN A STOCK TRADER WHO OWNS PARAMOUNT SHARES SAID I EXPECT
VIACOM TO TRY TO GIVE QVC A FALSE SENSE OF SECURITY BY BIDDING JUST ENOUGH
TO KEEP THE PROCESS ALIVE AND THEN COMING BACK WITH A MUCH HIGHER BID ON
THE FINAL DEADLINE OF FEB 1

MS BARRON NOTES THAT THE ACQUISITION OF BLOCKBUSTER WITHOUT THE INCURRENCE
OF EXTRA DEBT GIVES VIACOM MORE FLEXIBILITY TO RAISE ITS PARAMOUNT BID
WITHOUT STRETCHING ITS BALANCE SHEET PAST THE DANGER POINT

MS BARRON ESTIMATES THAT IF BOTH BIDDERS RAISED THEIR DEBT TO THE POINT
WHERE CASH FLOW WOULD COVER INTEREST PAYMENTS TWO TIMES OVER VIACOM COULD
OUTBID QVC BY 9 A PARAMOUNT SHARE OR 11 BILLION BUT SHE NOTES THAT QVC
COULD STRENGTHEN ITS OWN BALANCE SHEET BY OBTAINING MORE CASH FROM PARTNER
BELLSOUTH CORP

PARAMOUNT STOCK ENDED AT 7875 UP 25 CENTS IN COMPOSITE TRADING ON THE
NEW YORK STOCK EXCHANGE

VIACOM KEPT THE FOURMONTHOLD BIDDING WAR ALIVE JAN7 BY ANNOUNCING THE
BLOCKBUSTER MERGER AND RESTRUCTURING ITS OFFER FOR PARAMOUNT TO INCLUDE MORE
CASH WITHOUT CHANGING THE OVERALL VALUE

BUT THAT CHANGE CAME ONLY HOURS BEFORE THE PREVIOUS DEADLINE CONFUSING AND
ANGERING TRADERS WHO DIDN'T IMMEDIATELY REALIZE THAT VIACOM HAD REDUCED THE
VALUE OF SECURITIES BEING OFFERED FOR 499 OF PARAMOUNT IF VIACOM MAKES A
HIGHER BID TODAY THAT COULD BE AN EFFORT TO MAKE ITS TERMS KNOWN WELL IN
ADVANCE OF THE FRIDAY DEADLINE PARAMOUNT HAS SET FEB1 AS ITS DEADLINE FOR
BOTH BIDDERS TO SUBMIT THEIR HIGHEST OFFERS 9401180046 940118 STEEL
PRODUCTION FELL BY 01 LAST WEEK

WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 01 LAST
WEEK TO 1892000 TONS FROM 1894000 TONS THE PREVIOUS WEEK THE AMERICAN
IRON AND STEEL INSTITUTE SAID

LAST WEEK'S OUTPUT ROSE 72 FROM THE 1765000 TONS PRODUCED A YEAR
EARLIER

THE INDUSTRY USED 919 OF ITS CAPABILITY LAST WEEK COMPARED WITH 92 THE
PREVIOUS WEEK AND 835 A YEAR EARLIER THE AMERICAN IRON AND STEEL
INSTITUTE REPORTED

THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT
WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A
GIVEN WEEK 9401180045 940118 SOUTHERN CALIFORNIA EARTHQUAKE JOLTED
AGAIN QUAKE IN LOS ANGELES KILLS DOZENS LEAVES COMMERCE IN CHAOS 
 WITH BUSY HIGHWAYS CUT OFTENBATTERED REGION FACES ANOTHER
CHALLENGE  THE BIG ONE BIG ENOUGH'  A WALL STREET JOURNAL
NEWS ROUNDUP

LOS ANGELES RIOTS WILDFIRES MUDSLIDES NOW A DEADLY EARTHQUAKE HOW
MUCH BAD LUCK CAN LOS ANGELES AND ITS BATTERED ECONOMY STAND

THIS CITY AND ITS SUBURBS WERE SENT REELING AGAIN ON MONDAY WHEN A PREDAWN
EARTHQUAKE SHOOK DOWN FREEWAYS DWELLINGS AND COMMERCIAL BUILDINGS KILLING
MORE THAN TWO DOZEN AND PLUNGING MUCH OF THE CITY INTO FEAR AND DARKNESS
DESPITE THE DEATHS AND THOUGH DAMAGE IS EXPECTED TO RUN INTO THE HUNDREDS
OF MILLIONS OF DOLLARS EARTHQUAKE EXPERTS SAID THE REGION LIKE SAN
FRANCISCO IN 1989 CHEATED A GRIMMER FATE BECAUSE OF THE QUAKE'S TIMING

THE TEMBLOR THE MOST POWERFUL TO STRIKE LOS ANGELES THIS CENTURY AT 66 ON
THE RICHTER SCALE CAME AT 431 AM ON A HOLIDAY WHEN FREEWAYS SHOPPING
CENTERS AND MOST OFFICES WERE VIRTUALLY DESERTED WE ARE EXTREMELY GRATEFUL
THAT THIS DID NOT OCCUR LATER IN THE DAY SAID RITA WALTERS A MEMBER OF
THE CITY COUNCIL THE EPICENTER WAS 16 MILES NORTHWEST OF DOWNTOWN LOS
ANGELES

STILL FOR MILLIONS OF ANGELENOS WHO SURVIVED UNSCATHED THE MINUTE OF
SHAKING AND RUMBLING WAS AN EPISODE OF FEAR FOR SOME RAW TERROR THAT
FEW WILL FORGET SAID TONI MOSTON A STUDIO CITY WOMAN WHO LEAPT TO SAFETY
FROM THE BALCONY OF HER APARTMENT AS IT COLLAPSED I THOUGHT THIS WAS THE
BIG ONE FOR SURE EARTHQUAKE SCIENTISTS HAVE LONG PREDICTED THAT AN
EARTHQUAKE OF 83 OR BETTER THE MAGNITUDE OF THE 1906 SAN FRANCISCO QUAKE
 WILL STRIKE THE REGION IN THE NEXT DECADES

THE QUAKE COMES ATOP A DISCOURAGING AND COSTLY STRING OF DISASTERS TO BEFALL
THE LOS ANGELES REGION IN RECENT YEARS ITS ECONOMY NOSEDIVED INTO
RECESSION IN 1990 A FALL EXACERBATED LATER BY A COLLAPSE IN THE REGION'S
IMPORTANT DEFENSE SECTOR WHICH HAS SHED ALMOST 50000 JOBS IN THREE YEARS

THEN IN 1992 CAME THE LOS ANGELES RIOTS WHICH CAUSED AN ESTIMATED 775
MILLION IN INSURED LOSSES ATOP THAT WINDSWEPT BRUSHFIRES ROARED THROUGH
SOUTHERN CALIFORNIA LAST FALL CAUSING AN ESTIMATED 960 MILLION IN INSURED
LOSSES FOLLOWED BY MUDSLIDES THE 1989 SAN FRANCISCO EARTHQUAKE BY
COMPARISON CAUSED ABOUT 7 BILLION IN DAMAGE ABOUT 950 MILLION OF IT
INSURED

STILL ECONOMISTS WHILE NOT DISMISSING SHORTTERM NEGATIVE EFFECTS TO THE
REGION'S ECONOMY SAY THE QUAKE'S REPERCUSSIONS SHOULDN'T BE CRIPPLING OR
LONG TERM THE IMPACT OF THIS WILL BE SMALLER THAN PEOPLE EXPECT SAID
LARRY KIMBELL DIRECTOR OF THE UNIVERSITY OF CALIFORNIALOS ANGELES
BUSINESSFORECASTING PROJECT DOWN THE ROAD ECONOMISTS WILL NEED A
FINETOOTH COMB TO SEE ANYTHING HE CONTENDED

THE SEVERITY OF NEARTERM EFFECTS WILL DEPEND A LOT ON HOW QUICKLY POWER AND
DISRUPTED TRANSPORTATION SYSTEMS ARE RESTORED BY SOME ESTIMATES AS MANY AS
13 MILLION PEOPLE WERE WITHOUT POWER SHORTLY AFTER THE QUAKE WHILE WATER
SERVICE WAS DISRUPTED TO 600000 CITY OFFICIALS WERE OPTIMISTIC THAT MOST
OF THE WATER AND POWER SERVICE COULD BE RESTORED WITHIN A DAY OR TWO

BUT ROADS ARE A DIFFERENT MATTER INTERSTATE HIGHWAY 10 THE WORLD'S BUSIEST
FREEWAY COLLAPSED IN TWO PLACES WHILE INTERSTATE 5 CRUMBLED IN ONE PLACE
IN ADDITION AT LEAST A DOZEN OTHER SECTIONS OF FREEWAY OR MAJOR HIGHWAYS
ALSO SUFFERED DAMAGE SOME OF IT SERIOUS THOUGH TEMPORARY DETOURS MAY
ALLEVIATE SOME TRAFFIC CONGESTION MOST PEOPLE ARE GIRDING FOR AN EXTENDED
NIGHTMARE OF GRIDLOCK IN A CITY WITH ONLY LIMITED PUBLICTRANSIT FACILITIES

CALIFORNIA HIGHWAY ENGINEERS SAID MERELY SURVEYING AND DESIGNING REPAIRS
COULD TAKE WEEKS AND ACTUAL CONSTRUCTION MONTHS LONGER AND AS STRONG
AFTERSHOCKS CONTINUED THROUGH THE AFTERNOON STATE TRANSPORTATION OFFICIALS
ESTIMATED THAT IT COULD TAKE WEEKS JUST TO CLEAN UP THE DEBRIS ONE OF THE
AFTERSHOCKS WAS MEASURED AT 55 ON THE RICHTER SCALE AND EMERGENCY
OFFICIALS WORRIED ABOUT POSSIBLE LANDSLIDES AND FURTHER STRUCTURAL DAMAGE TO
BUILDINGS OR ROADS

INDEED SAN FRANCISCO'S FREEWAY SYSTEM HAS YET TO FULLY RECOVER FROM THE
71RATED LOMA PRIETA QUAKE IN 1989 THAT QUAKE KNOCKED OUT A SECTION OF THE
BAY BRIDGE AND DESTROYED MILES OF ELEVATED FREEWAY AND NUMEROUS EXIT AND
ENTRY RAMPS REPAIR COSTS ARE ESTIMATED AT 13 BILLION

THUS IF HIGHWAY 10 IS SIGNIFICANTLY DAMAGED AND CLOSED FOR A LONG TIME I
WOULD SEE THAT AS A BIG PROBLEM SAYS DAVID HENSLEY AN ANALYST
SPECIALIZING IN REGIONAL ECONOMIES FOR SALOMON BROTHERS IT WOULD BE
DISRUPTIVE FOR TRUCKING AND FOR PEOPLE TO GET TO WORK

AND HOWEVER SOON TRANSPORTATION LINKS AND POWER ARE RESTORED THE QUAKE WILL
BE ANOTHER NEGATIVE FOR THE REGION TO OVERCOME ECONOMISTS ADD THIS IS
CLEARLY BAD FOR TOURISM HOTEL OCCUPANCY RATES IN SAN FRANCISCO'S HOTELS DID
NOT COME BACK AFTER ITS QUAKE SAID MR HENSLEY

QUAKES ALSO TEND TO GIVE THE PROPERTY MARKET AND BUSINESSES IN GENERAL THE
JITTERS IF WE ARE WAITING FOR A BIGGER ONE  THIS ONE IS BIG ENOUGH
FOR ME SAID LARRY SOLTERS OWNER OF SCOOP MARKETING A PUBLICRELATIONS
CONCERN IF I COULD TAKE MY BUSINESS ELSEWHERE I WOULD SERIOUSLY CONSIDER
MOVING

WITH SCATTERED LOOTING BEING REPORTED IN SOME HARDHIT AREAS AND IN THE
UNDAMAGED CITY CENTER GOV PETE WILSON CALLED UP SOME MEMBERS OF THE
NATIONAL GUARD TO HELP CITY OFFICIALS IMPOSE A DUSKTODAWN CURFEW BY
NIGHTFALL ABOUT HALF A DOZEN LOOTERS HAD BEEN ARRESTED CITY SCHOOLS WERE
ORDERED TO REMAIN CLOSED TODAY AND PRIVATE INDUSTRY WAS ASKED TO KEEP
BUSINESSES SHUTTERED

PRESIDENT CLINTON YESTERDAY AFTERNOON DECLARED SOUTHERN CALIFORNIA A
DISASTER AREA MAKING AVAILABLE VARIOUS KINDS OF FEDERAL AID AMONG THESE
ARE GRANTS TO INDIVIDUALS OF AS MUCH AS 12200 SMALL BUSINESS
ADMINISTRATION LOANS OF UP TO 100000 TO REPAIR DAMAGE TO BUILDINGS THAT
HOUSE SMALL ENTERPRISES AND AS MUCH AS 20000 TO REPLACE DAMAGED CONTENTS
AND TEMPORARY HOUSING FOR AS LONG AS 18 MONTHS FOR THOSE WHO HAVE LOST
THEIR HOMES THE PRESIDENT SAID THAT REPAIRING DAMAGED FREEWAYS WOULD BE THE
MOST URGENT AND MOST EXPENSIVE NEED THAT WE KNOW ABOUT NOW AND THAT HE
WOULD NOT VISIT THE AREA BECAUSE IT'S IMPORTANT THAT I NOT GO OUT THERE AND
GET IN THE WAY

IF LARGE POCKETS OF LOS ANGELES WERE LEFT UNDISTURBED BY THE QUAKE IT SOWED
DEATH CHAOS AND DISASTER IN LESSFORTUNATE AREAS IT SENT WHAT SOME
DISASTER OFFICIALS CALLED A WALL OF WALKING WOUNDED TO AREA HOSPITALS 
MANY OF THEM THROWN OUT OF BED OR CLOBBERED BY FALLING DEBRIS IN THE QUAKE'S
VIOLENT AFTERMATH

FOR RESIDENTS JOLTED AWAKE AND THINKING THE BIG ONE HAD STRUCK NO ONE COULD
BLAME THEM THE VIEW IN SOME QUARTERS WAS APOCALYPTIC IN GRANADA HILLS FOR
EXAMPLE RUPTURED GAS AND WATER LINES SENT BOTH WATER AND FIREBALLS SURGING
ALONG RESIDENTIAL STREETS THE QUAKE THREW A 64CAR TRAIN OFF ITS TRACK
WRECKING CARS THAT THEN BEGAN TO LEAK SULFURIC ACID IN NORTHRIDGE NEAR THE
EPICENTER THE BULLOCKS DEPARTMENT STORE WAS SHAKEN INTO A TWISTED PILE OF
CONCRETE AND STEEL AND A COLLAPSING APARTMENT BUILDING IN THAT TOWN
ACCOUNTED FOR AT LEAST 14 OF THE QUAKE'S DEATHS

NORTHRIDGE IS QUINTESSENTIAL VALLEY IN LOS ANGELES PARLANCE A FLAT
EXPANSE OF FORMER ORANGE GROVES LINED WITH TIDY MIDDLECLASS HOMES WITH
RECENT HISPANIC IMMIGRANTS CLUSTERED IN APARTMENTS NEAR THE MAIN AVENUES

IT WAS RIGHT UNDER MY PILLOW SAID MUSIC PRODUCER DAVID WEISS A MEMBER OF
THE ROCK GROUP WAS NOT WAS WHO LIVES IN NEARBY GRANADA HILLS IT WAS LIKE
HAVING A CRICKET IN YOUR HAND AND SHAKING IT AS VIOLENTLY AS POSSIBLE A
SEVENFOOT ARMOIRE TUMBLED ONTO THE BED WHERE HE AND HIS WIFE WERE SLEEPING
FORTUNATELY WHEN SHE HAD INSTALLED TALL BOOKSHELVES IN THE CHILDREN'S
ROOMS SHE HAD HAD THEM BOLTED TO THE WALL

MR WEISS HAD JUST COMPLETED A MAJOR CHAOS REMOVAL IN HIS GARAGE AND SET
UP AN EXPENSIVE RECORDING STUDIO WITH 7000 RECORD ALBUMS MOST OF IT
SURVIVED THOUGH THE CHAOS RETURNED IN AN INSTANT

OUT ON THE STREET IN THE IMMEDIATE AFTERMATH LOOTING WAS GOING ON NEARBY
AND A NUMBER OF ELDERLY PEOPLE WERE WANDERING THE SIDEWALKS LOOKING
CONFUSED ALONG CORBIN AVENUE IN NORTHRIDGE SHOPPINGCENTER SIDEWALKS WERE
LITTERED WITH BROKEN GLASS PROPRIETORS DEBATED HOW TO SECURE THEIR PROPERTY
FOR NIGHTFALL EVEN AS AFTERSHOCKS CONTINUED INTERMITTENTLY

FOUAD KHOURY AN OWNER OF KING ARTHUR LIQUORS SURVEYED A BROWN STICKY
RIVER OF BEVERAGES RUNNING ALONG HIS FLOOR THE 50000 OR SO OF ESTIMATED
DAMAGE WON'T BE COVERED BY INSURANCE

IT'S IMPOSSIBLE TO GET EARTHQUAKE INSURANCE ON A BUSINESS ESPECIALLY A
LIQUOR STORE HE SAID HE HAS AN EARTHQUAKE RIDER ON COVERAGE OF HIS NEARBY
HOUSE BUT DOESN'T EXPECT IT TO HELP MUCH TO CORRECT THE BADLY CRACKED WALLS
AND OTHER DAMAGE THE DEDUCTIBLE IS VERY HIGH HE SAID

WITHOUT ELECTRICITY SHOP OWNERS IN THE HARDESTHIT AREAS OF NORTHRIDGE AND
OTHER COMMUNITIES WERE PUZZLED ABOUT WHAT AID STATE AND FEDERAL AUTHORITIES
MIGHT PLAN TO PROVIDE MR KHOURY WAS PONDERING WHETHER TO STAY ON TO
PROTECT WHAT WAS LEFT OF KING ARTHUR LIQUORS OR FIND PEOPLE TO WATCH THE
PLACE FOR HIM LAST NIGHT I REALLY DON'T KNOW HE SAID DURING A BRIEF
BREAK FROM HIS CLEANUP EFFORTS

IN HOLLYWOOD SEVERAL DRUGSTORES AND SUPERMARKETS HAD CUSTOMERS LINING UP
BEFORE DAYLIGHT WHILE CLERKS LED THEM IN SMALL GROUPS TO MAKE THEIR
PURCHASES THOSE GASOLINE STATIONS WITH ELECTRICITY HAD LINES OF CARS AT THE
PUMP THE HILLS WERE CLOUDED WITH DUST FROM THE SHAKING BUT HILLDWELLERS
GENERALLY CAME OUT OF IT BETTER THAN THOSE IN THE FLAT AREAS BECAUSE THE
HILLS OFTEN ARE CARVED OF GRANITE AND ACT AS SHOCK ABSORBERS OR SO THE
APOCRYPHA GO

ALONG RODEO DRIVE IN BEVERLY HILLS THE PLATEGLASS WINDOW AT BERTINI AN
EXCLUSIVE WOMEN'SAPPAREL RETAILER SHATTERED AFTER SEVERAL 50POUND STEEL
MANNEQUINS TUMBLED THROUGH TO LIE ON THE SIDEWALK INSIDE VERSACE GOWNS AND
HUGO BOSS OUTFITS WERE STREWN EVERYWHERE AMID FALLEN CEILING PANELS

THERE WERE 5000 OUTFITS JUST SITTING THERE ON THE FLOOR SAID JASON
ELKIN STORE MANAGER

DESPITE THE GROWING DEATH TOLL IT SEEMED REMARKABLE THAT EVEN MORE WEREN'T
KILLED GIVEN THE NUMBER OF APARTMENT COMPLEXES ALL OVER THE SAN FERNANDO
VALLEY THAT WERE SEVERELY DAMAGED TANIA SELLMEYER AWOKE AS THE FLOOR OF HER
SHERMAN OAKS APARTMENT FELL ONTO THE PARKING GARAGE BELOW CRUSHING MY
BRANDNEW JEEP CHEROKEE SHE CRAWLED ON HER KNEES AND JUMPED OUT A BROKEN
WINDOW TO THE GROUND BELOW CUTTING HER ARMS IN THE PROCESS THERE WAS
SMOKE EVERYWHERE I THOUGHT EVERYBODY WAS DEAD SHE SAID SHE WAS AMAZED TO
LEARN LATER THAT THERE HAD BEEN NO FATALITIES IN HER BUILDING

AS DARKNESS APPROACHED THE SAN FERNANDO VALLEY WAS STILL MOSTLY WITHOUT
POWER COMMANDER DAVID GASCON CHIEF SPOKESMAN OF THE LOS ANGELES POLICE
CALLED IT THE WORST UTILITY EMERGENCY IN THE CITY'S HISTORY HE DESCRIBED
THE DECLARATION OF A DUSKTODAWN CURFEW OVER THE WHOLE CITY AS A HEALTH
AND SAFETY ISSUE WE NEED TO PRESERVE CIVIL ORDER AND THIS IS ONE OF THE
WAYS WE CAN DO IT

NUMEROUS BUSINESSES LARGE AND SMALL SUFFERED LOS ANGELESBASED FIRST
INTERSTATE BANCORP WHICH OPERATES ONE OF THE STATE'S LARGEST BRANCH
SYSTEMS SUSTAINED DAMAGE ESTIMATED AT MORE THAN 1 MILLION MAINLY AT ITS
CREDITCARD PROCESSING CENTER IN SIMI VALLEY WHERE WATER PIPES BROKE
AUTOMATEDTELLER MACHINES AT 18 OF THE BANK'S 90 LOS ANGELESAREA BRANCHES
WERE NOT WORKING YESTERDAY BECAUSE OF POWER OUTAGES A BANK SPOKESMAN SAID

KAISER PERMANENTE THE BIG HEALTHMAINTENANCE ORGANIZATION SAID ITS GRANADA
HILLS BUILDING SUFFERED SEVERE STRUCTURAL DAMAGE ITS OUTER WALLS SHEARED
OFF EXPOSING OFFICE SPACES TO THE OPEN AIR LIKE CELLS IN A BEEHIVE SINCE
THE FACILITY OFFERS ONLY OUTPATIENT SERVICES NO ONE WAS THERE WHEN THE
QUAKE STRUCK

MUCH OF SOUTHERN CALIFORNIA'S AEROSPACEMANUFACTURING INFRASTRUCTURE WAS
BADLY RATTLED BUT LITTLE MORE

LOCKHEED CORP'S CORPORATE HEADQUARTERS IN THE WESTERN SAN FERNANDO VALLEY
TOWN OF CALABASAS TOOK A SEVERE EARLYMORNING JOLT DAMAGING THE COMPANY'S
LAW LIBRARY AND AT GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT LOS
ANGELESAREA OPERATIONS WERE CLOSED YESTERDAY FOR AN EVALUATION OF DAMAGES

FOR SOME SMALLBUSINESS PEOPLE WHO SUFFERED IN THE LOS ANGELES RIOTS THE
EARTHQUAKE WAS ANOTHER MAJOR BLOW BROKEN GLASS AND PLASTER LITTERED THE
FLOOR OF HUNG LEE'S ELEGANT LIFESTYLE FURNITURE STORE WOOD BEAMS WERE
EXPOSED WHERE CHUNKS OF PLASTER FELL AND A CRACK RAN THE ENTIRE LENGTH OF
THE BRICK BUILDING ON THE CORNER OF MELROSE AND WESTERN AVENUES IN
HOLLYWOOD

MR LEE ESTIMATES THE DAMAGE AT 10000 HE HAS NO EARTHQUAKE INSURANCE BUT
DOESN'T PLAN TO APPLY FOR EMERGENCY FUNDS DURING THE 1992 RIOTS HIS STORE
WAS STRIPPED BARE BY LOOTERS AND THEN HIS INSURANCE COMPANY DECLARED
BANKRUPTCY HE IS STILL 80000 IN DEBT

THIS TIME I'M NOT EVEN GOING TO APPLY FOR A GOVERNMENT LOAN HE SAID
NOTING THAT AFTER THE RIOTS HE APPLIED FOR A SMALL BUSINESS ADMINISTRATION
LOAN AND WAS TOLD HE DIDN'T QUALIFY ALL IN ALL MR LEE SAID THIS ISN'T
TOO BAD COMPARED TO THE RIOTS 9401180043 940118 INTERNATIONAL BRIEF 
BTR PLC GRAHAM GROUP TO BE FLOATED BY PUBLIC OFFER AND PLACING

UK INDUSTRIAL HOLDING COMPANY BTR PLC SAID IT WILL FLOAT ITS GRAHAM GROUP
SEEKING A LISTING ON THE LONDON STOCK EXCHANGE THROUGH A PUBLIC OFFER AND
PLACING

THE GRAHAM GROUP ENCOMPASSES TWO DISTRIBUTION BUSINESSES GRAHAM BUILDERS
MERCHANTS AND GOODMAN CROGGON IT HAS 2900 EMPLOYEES AND IS THE UK'S
FOURTHLARGEST BUILDERS MERCHANT BY SALES ACCOUNTING FOR AROUND 5 OF THE
MARKET IN 1992 GRAHAM GROUP SALES TOTALED AROUND 350 MILLION BTR SAID

A SPOKESMAN SAID IT WAS TOO EARLY TO DIVULGE WHAT PRICE IT EXPECTS TO
RECEIVE IN THE FLOTATION HE SAID A PROSPECTUS WILL BE RELEASED IN FEBRUARY

IN LONDON STOCK EXCHANGE TRADING YESTERDAY BTR GAINED 45 PENCE TO 3645
PENCE 9401180042 940118 WHAT'S NEWS  BUSINESS AND FINANCE

ELI LILLY PLANS TO SELL OR SPIN OFF ITS ENTIRE MEDICALDEVICE BUSINESS
ACCORDING TO PEOPLE FAMILIAR WITH THE DECISION THE MOVE TO SHED THE NINE
COMPANIES WITH TOTAL ANNUAL SALES OF ABOUT 12 BILLION IS THE FIRST
INDICATION OF A CHANGE IN COURSE FOR LILLY UNDER ITS NEW CHAIRMAN RANDALL
TOBIAS THE LANDSCAPE OF VARIOUS MEDICAL FIELDS WOULD BE ALTERED BY THE
PLAN SINCE LILLY OWNS THE MARKET LEADER OR A STRONG NO 2 PLAYER IN SEVERAL
AREAS

INSURANCE COMPANIES BRACED FOR AN ONSLAUGHT OF CLAIMS FROM EARTHQUAKERAVAGED
LOS ANGELES THAT SOME EXPERTS SAID COULD REACH 1 BILLION BUT THE INDUSTRY
IS EXPECTED TO ESCAPE SERIOUS FINANCIAL DAMAGE BECAUSE OF THE NATURE OF
EARTHQUAKE COVERAGE SUCH AS HIGH PREMIUMS AND DEDUCTIBLES

CHINA AGREED TO LIMIT GROWTH IN ITS TEXTILE EXPORTS TO THE US OVER THREE
YEARS US TRADE REPRESENTATIVE KANTOR SAID THERE WAS NO LINKAGE BETWEEN
THE PACT AND OTHER BENEFITS SUCH AS AN EXTENSION OF FAVORED TRADE STATUS
BUT SAID THAT IT MARKS THE BEGINNING OF A HEALTHIER RELATIONSHIP

THE US IS PUSHING JAPAN TO AGREE TO INCREASE ITS PURCHASES OF USMADE
AUTO PARTS BY ABOUT 20 A YEAR AS THE WHITE HOUSE BROADENS ITS PRESSURE ON
JAPAN TO MOVE ON STALLED TRADE TALKS

JAPAN'S CABINET ENDORSED A PLAN TO OPEN THE NATION'S PUBLICWORKS MARKET TO
FOREIGN CONSTRUCTION COMPANIES IN A BID TO CLEAR AWAY ONE OF ITS MOST
NETTLESOME TRADE DISPUTES WITH THE US

GRUMMAN PLANS TO CLOSE ONETHIRD OF ITS FACTORY SPACE AND TRIM ABOUT 400
JOBS AS PART OF A SUBSTANTIAL RESTRUCTURING WHICH INCLUDES A FOURTHQUARTER
CHARGE OF AS MUCH AS 90 MILLION THE FIRM SAID MORE CUTS ARE LIKELY FROM
ITS 8000MEMBER FORCE AS IT FACES FUTURE MILITARYSPENDING REDUCTIONS

A RECOVERY IN EUROPE APPEARS TO HAVE BEGUN THOUGH IT COULD BE QUITE A WHILE
BEFORE BUSINESS REALLY PICKS UP A EUROPEAN UNION PANEL PREDICTS 13 GROWTH
AMONG ITS MEMBER STATES THIS YEAR AFTER A 04 CONTRACTION IN 1993

VIACOM IS PREPARING TO RAISE ITS 93 BILLION BID FOR PARAMOUNT TO STAY IN
THE CONTEST WITH QVC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION

WOODWARD & LOTHROP FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF
THE FEDERAL BANKRUPTCY CODE

MICROWARE SYSTEMS LANDED A BIG MULTIMEDIAINDUSTRY COUP IT DESIGNS THE
OPERATING SYSTEM USED IN THE TV SETTOP BOXES OF ALL THREE SUPPLIERS NAMED
BY BELL ATLANTIC FOR ITS AGGRESSIVE ROLLOUT OF INTERACTIVETV SERVICE

A FORMER PRUDENTIAL SECURITIES PRODUCT MANAGER TIED THE FIRM'S LEGAL
DEPARTMENT DIRECTLY TO ITS LIMITEDPARTNERSHIP SCANDAL FOR THE FIRST TIME
PEOPLE FAMILIAR WITH THE INQUIRY SAID

FIRST CHICAGO REPORTED A 27 INCREASE IN FOURTHQUARTER PROFIT DRIVEN BY
STRONG CREDITCARD EARNINGS

DUN & BRADSTREET SAID THE CHAIRMAN OF ITS AC NIELSEN MARKETRESEARCH UNIT
JOHN C HOLT RESIGNED

AN APPLE EXECUTIVE INSTRUMENTAL IN LAUNCHING A LINE OF PORTABLE COMPUTERS IS
LEAVING FOR MOTOROLA THE LATEST IN A STRING OF HIGHLEVEL DEPARTURES

ALEXANDER & ALEXANDER'S CHAIRMAN QUIT INCREASING THE LIKELIHOOD OF AN
OVERHAUL AT THE INSURANCE BROKER

COMMODITIES OIL 1510 A BARREL UP 32 CENTS DOW JONES FUTURES INDEX
14214 OFF 051 SPOT INDEX 13041 UP 013

DOLLAR 11106 YEN UNCHANGED 17553 MARKS UP 00058 9401180041 940118
CREDIT RATINGS PSEG OPERATING UNITS GET S&P RATINGS CUT ON LONGTERM
DEBT

NEW YORK STANDARD & POOR'S CORP LOWERED ITS LONGTERM DEBT RATINGS FOR
THE OPERATING UNITS OF PUBLIC SERVICE ENTERPRISE GROUP INC CITING SLUGGISH
SALES GROWTH AND INTENSIFYING COMPETITION

ABOUT 56 BILLION OF DEBT IS AFFECTED

PUBLIC SERVICE ELECTRIC & GAS CO THE NEWARK NJ UTILITY HOLDING
COMPANY'S PRIMARY OPERATING UNIT HAD ITS SENIOR SECURED DEBT RATING DROPPED
TO SINGLEAMINUS FROM SINGLEA S&P SAID DESPITE AMPLE GENERATING RESERVES
AND ONLY LIMITED FINANCING PRESSURES DURING THE NEXT SEVERAL YEARS PSE&G'S
FINANCIAL IMPROVEMENT LIKELY WILL BE LIMITED BY THE WEAK LOCAL ECONOMY AND A
HIGH DIVIDEND PAYOUT

WE ARE DISAPPOINTED WITH S&P'S DECISION TO DOWNGRADE A SPOKESMAN FOR
PSE&G SAID WE AGREE THAT THE INDUSTRY IS BEING CHALLENGED BY COMPETITION
BUT WE FEEL THAT THE COMPANY HAS IS AND WILL CONTINUE TO TAKE MEASURES TO
COMPETE SUCCESSFULLY IN THIS BUSINESS THE COMPANY ADDED THAT IT HAS NO
PLANS TO REDUCE ITS DIVIDEND

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PUBLIC SERVICE
ENTERPRISE GROUP FELL 375 CENTS TO 3050 9401180040 940118 BUSINESS
BRIEFS

BOMBARDIER INC SOLD THE ITALIAN GOVERNMENT FOUR CANADAIR CL415
FIREFIGHTING AMPHIBIOUS AIRCRAFT FOR A TOTAL OF ABOUT 100 MILLION CANADIAN
DOLLARS US755 MILLION

AT&T CAPITAL CORP ACQUIRED AVIS INC'S AVIS LEASING UNIT IN TORONTO WHICH
LEASES AUTOMOBILES TO SMALL AND MIDSIZE BUSINESS CLIENTS IN CANADA THE
TRANSACTION DOESN'T INCLUDE AVIS'S CONSUMER CARRENTAL BUSINESS TERMS
WEREN'T DISCLOSED AT&T CAPITAL IS A UNIT OF AMERICAN TELEPHONE & TELEGRAPH
CO

VARITY CORP'S MASSEY FERGUSON UNIT IS DISCUSSING FORMING A JOINT VENTURE
WITH RENAULT SA'S RENAULT AGRICULTURE SA UNIT IN FRANCE TO RESEARCH
DEVELOP AND MANUFACTURE TRACTOR TRANSAXLES AND RELATED COMPONENTS AT MASSEY
FERGUSON'S OPERATIONS IN BEAUVAIS FRANCE TERMS WEREN'T DISCLOSED

SCHULLER INTERNATIONAL INC A UNIT OF MANVILLE CORP AND OWENSCORNING
FIBERGLAS CORP TOLEDO OHIO HAVE COMPLETED THE SWAP OF PART OF THEIR
ROOFING BUSINESSES THE TRANSACTION GIVES SCHULLER THE COMMERCIAL AND
INDUSTRIAL ROOFING BUSINESS OF OWENSCORNING AND OWENSCORNING WILL PICK UP
THE RESIDENTIAL ROOFING BUSINESS OF SCHULLER 9401180039 940118 WHAT'S
NEWS  WORLDWIDE

A MAJOR EARTHQUAKE STRUCK LOS ANGELES KILLING OVER TWO DOZEN PEOPLE

THE QUAKE HIT BEFORE DAWN DAMAGING UP TO 1000 BUILDINGS CRUMPLING FREEWAY
OVERPASSES AND SPARKING MORE THAN 100 FIRES IT CAUSED POWER OUTAGES
AFFECTING AS MANY AS 13 MILLION PEOPLE AND SNARLED AIR RAIL AND HIGHWAY
TRAFFIC THE TEMBLOR REGISTERING 66 ON THE RICHTER SCALE AND FELT AS FAR
AWAY AS LAS VEGAS WAS THE LATEST IN A SERIES OF BLOWS TO THE REGION'S
ECONOMY THE EPICENTER WAS THE SAN FERNANDO VALLEY AND THE HARDESTHIT TOWN
WAS NORTHRIDGE WHERE 14 PEOPLE DIED IN THE COLLAPSE OF AN APARTMENT HOUSE
LATE YESTERDAY LOS ANGELES MAYOR RIORDAN IMPOSED A DUSKTODAWN CURFEW IN
THE CITY

PRESIDENT CLINTON SIGNED A FEDERAL DECLARATION OF DISASTER FOR SOUTHERN
CALIFORNIA CLEARING THE WAY FOR MASSIVE GOVERNMENT RELIEF AID

ISRAEL IS STRONG ENOUGH TO TAKE A CALCULATED RISK FOR PEACE EVEN IF THAT
MEANS RETURNING THE GOLAN HEIGHTS TO SYRIA ISRAEL'S DEPUTY DEFENSE MINISTER
SAID BUT HE SAID THE RABIN GOVERNMENT WOULD HOLD A REFERENDUM ON ANY
EXTENSIVE PULLBACK FROM THE GOLAN HE STRESSED THAT THE PRICE OF A
SETTLEMENT WITH SYRIA WAS FULL WITHDRAWAL

MEXICO'S PEACE COMMISSIONER SAID HE RECEIVED AN OFFICIAL COMMUNIQUE FROM THE
REBEL ZAPATISTA NATIONAL LIBERATION ARMY HE WOULDN'T DISCLOSE ANY DEMANDS
OUTLINED IN THE COMMUNIQUE WHICH MARKED THE FIRST OFFICIAL CONTACT BETWEEN
THE GOVERNMENT AND THE REBELS SINCE A PEASANT UPRISING BROKE OUT JAN 1 IN
SOUTHERN MEXICO

YELTSIN TRIED TO RALLY HIS DIVIDED GOVERNMENT AND VOWED TO FORGE AHEAD WITH
REFORM THE RUSSIAN LEADER ACCEPTED THE RESIGNATION OF HIS REFORM CZAR
GAIDAR WHO QUIT BECAUSE OF CONSERVATIVE RESISTANCE TO HIS POLICIES FINANCE
MINISTER FYODOROV SAID HE WOULD STAY ON ONLY IF THE CENTRAL BANK CHIEF AND
DEPUTY PREMIER BOTH STEPPED DOWN

A SPECIAL PROSECUTOR'S REPORT IS DUE TO BE ISSUED TODAY ON THE IRANCONTRA
SCANDAL AND THE DOCUMENT REPORTEDLY WILL CRITICIZE EXPRESIDENT REAGAN AND
HIS AIDES THE REPORT BY INDEPENDENT COUNSEL WALSH COMPLETED IN AUGUST BUT
SEALED IN COURT FILES SINCE THEN CHRONICLES THE SEVENYEAR CRIMINAL PROBE
OF ARMSFORHOSTAGES DEALS WITH IRAN

BOSNIAN SERB LEADERS THREATENED TO UNLEASH ALLOUT WAR AGAINST THE
MUSLIMLED GOVERNMENT IF THERE IS NO AGREEMENT AT GENEVA TALKS THAT START
TODAY SEPARATELY UN SECRETARYGENERAL BOUTROSGHALI ORDERED UN
PEACEKEEPERS TO FORMULATE CONCRETE PLANS FOR TWO POSSIBLE MILITARY
OPERATIONS THAT COULD REQUIRE NATO AIR STRIKES

BRITAIN'S MAJOR TESTIFIED THAT HE WASN'T INFORMED ABOUT A 1988 GOVERNMENT
DECISION TO EASE RESTRICTIONS ON ARMS SALES TO IRAQ THE PRIME MINISTER
APPEARED BEFORE A TRIBUNAL HE SET UP IN 1992 FOLLOWING REVELATIONS THAT THE
UK GOVERNMENT SECRETLY APPROVED THE EXPORT TO IRAQ OF EQUIPMENT USED TO
MAKE WEAPONS

FIFTEEN THOUSAND ZULUS RALLIED OUTSIDE THE SOUTH AFRICAN PRESIDENT'S OFFICE
IN PRETORIA TO PRESS THEIR AUTONOMY DEMANDS THE ZULUS BRANDISHING SPEARS
AND GUNS DEMONSTRATED AS DE KLERK MET WITH ZULU KING ZWELETHINI AND ZULU
LEADER BUTHELEZI WHO WANT GUARANTEES OF ZULU AUTONOMY AS A CONDITION FOR
TAKING PART IN AN APRIL VOTE

TWO GERMAN NEONAZIS WERE JAILED FOR ASSAULTING A US OLYMPIC ATHLETE WHO
WENT TO THE AID OF A BLACK COLLEAGUE AFTER HE WAS INSULTED BY SKINHEADS
SHOUTING RACIAL EPITHETS A COURT IN THE EASTERN GERMAN TOWN OF SUHL FOUND
THE TWO DEFENDANTS GUILTY OF THE OCT 29 BEATING OUTSIDE A DISCO IN THE
WINTER SPORTS RESORT OF OBERHOF

US KOREAN WAR POWS WERE TAKEN SECRETLY TO THE SOVIET UNION AND NEVER
RETURNED ACCORDING TO A STUDY ORDERED BY THE PENTAGON THE REPORT CONCLUDED
THAT 50 US SERVICEMEN MISSING FROM THE 195053 WAR WERE TRANSFERRED TO THE
SOVIET UNION

COLOMBIA'S FINANCE MINISTER ESCAPED ASSASSINATION IN BOGOTA WHEN A
REMOTECONTROL BOMB HIDDEN IN A LAMPPOST EXPLODED NEAR HIS MOTORCADE
GUERRILLAS CLAIMED RESPONSIBILITY FOR THE ATTACK IN WHICH A BODYGUARD WAS
INJURED SEPARATELY REBELS KIDNAPPED TWO US MISSIONARIES IN A TOWN
SOUTHEAST OF THE CAPITAL ON SUNDAY

THE UN HAS ORDERED THE RELEASE OF EIGHT SUPPORTERS OF SOMALI CLAN LEADER
AIDID THE DETAINEES HELD IN CONNECTION WITH ATTACKS ON UN PEACEKEEPERS
WERE THE LAST OF ABOUT 750 SOMALI DETAINEES ORDERED FREED 9401180038
940118 POLITICS & POLICY AN OLD FRIEND OF THE CLINTONS STAYS LOYAL
SPENDS SPARE TIME DOING DAMAGE CONTROL FOR PRESIDENT  BY JAMES M
PERRY STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON POOR BETSEY WRIGHT CAPITAL INSIDERS SAID WITH A HINT OF
CONDESCENSION HER OLD ARKANSAS BOSS BILL CLINTON DIDN'T OFFER HER A JOB
IN THE WHITE HOUSE OR ANYWHERE ELSE IN HIS NEW GOVERNMENT AND SO THEY
SAID THE BEST SHE COULD DO WAS ACCEPT A KINDLY BENEFICE AN EMPTY DESK IN
A DOWNTOWN LOBBYIST'S OFFICE

POOR BETSEY WRIGHT INDEED

ALL SHE'S DONE SINCE SHE CAME TO TOWN LAST MARCH IS MAKE A SPLASH LOBBYING
FOR EVERYTHING FROM THE NORTH AMERICAN FREE TRADE AGREEMENT TO AMERICAN
AIRLINES TO HEALTH CARE AND WHEN SHE WASN'T DOING THAT SHE WAS FLYING DOWN
TO LITTLE ROCK ON HER OWN TIME TO WORK SOME DEXTROUS DAMAGE CONTROL OVER
ALLEGATIONS BY ARKANSAS STATE TROOPERS THAT THEY HAD SEEN MR CLINTON IN
SOME PRETTY COMPROMISING SITUATIONS

I'M HAVING THE TIME OF MY LIFE SHE SAYS IN AN INTERVIEW IN HER
COMFORTABLE OFFICE ON THE SIXTH FLOOR OF WASHINGTON'S FIRST STEELBEAMED
OFFICE TOWER THIS IS WONDERFUL

SHE'S A GREAT STRATEGIST AND SHE'S DOING WONDERFUL THINGS FOR US SAYS HER
BOSS ANNE WEXLER A PROMINENT DEMOCRAT AND CHAIRMAN OF WEXLER GROUP A
GOVERNMENT RELATIONS AND PUBLIC AFFAIRS CONSULTING UNIT OF HILL & KNOWLTON
INC ITSELF A UNIT OF WPP GROUP PLC ITS CLIENT LIST RUNS FROM AMERICAN
AIRLINES TO GENERAL MOTORS CORP TO JP MORGAN & CO

MS WRIGHT WON'T EVEN DISCUSS WHO HER CLIENTS ARE LET ALONE HOW MUCH SHE IS
PAID AS ONE OF WEXLER GROUP'S SEVEN EXECUTIVE VICE PRESIDENTS BUT IT'S A
FAIR BET THAT IT IS A LOT MORE THAN SHE MADE IN HER YEARS AS ONE OF MR
CLINTON'S TOP AIDES AND POLITICAL OPERATIVES IN LITTLE ROCK FOR THE FIRST
TIME IN MY LIFE I CAN SAY IT'S NO ONE ELSE'S BUSINESS SHE SAYS

WHAT MAKES THE 49YEAROLD MS WRIGHT SO SPECIAL IS HER RELATIONSHIP TO BILL
AND HILLARY RODHAM CLINTON SHE'S SO CLOSE TO THE FIRST COUPLE THAT SHE CAN
AFFORD TO TURN DOWN AN INVITATION TO DROP BY THE WHITE HOUSE FOR AN INFORMAL
DINNER AND A MOVIE AN OPPORTUNITY MOST LOBBYISTS AND WHEELERDEALERS HERE
WOULD DIE FOR I DIDN'T WANT TO SEE THE MOVIE SHE SAYS

SO CLOSE TOO THAT MS WRIGHT EXPECTS TO BE SUBPOEANED BY A FEDERAL GRAND
JURY IN LITTLE ROCK LOOKING INTO MR AND MRS CLINTON'S ROLE IN THE
CONTROVERSY SURROUNDING THEIR WHITEWATER DEVELOPMENT CO REALESTATE
INVESTMENT MS WRIGHT SAYS THE FEDERAL BUREAU OF INVESTIGATION TOLD HER TO
EXPECT SUCH A SUBPOENA BUT SHE SAYS SHE HAS NOW BEEN TOLD TO DISREGARD THAT
WARNING IN ANY EVENT SHE SAYS SHE EXPECTS TO BE SUBPOENAED EVENTUALLY
BECAUSE SHE KNOWS SO MUCH ABOUT MR CLINTON'S ARKANSAS CAMPAIGN RECORDS SHE
SAYS SHE WILL COOPERATE WITH INVESTIGATORS

MS WRIGHT COMES FROM RURAL TEXAS SHE WAS REARED IN LITTLE ALPINE JUST
DOWN THE ROAD FROM MARATHON IN THE SOUTHWESTERN BIG BEND CORNER OF THE
STATE AND HONED HER POLITICAL SKILLS AT THE UNIVERSITY OF TEXAS SHE MET
BILL CLINTON IN 1972 WHEN THEY BOTH WORKED IN TEXAS IN GEORGE MCGOVERN'S
FORLORN PRESIDENTIAL CAMPAIGN SHE CAME TO LITTLE ROCK IN 1980 AFTER MR
CLINTON HAD BEEN DEFEATED FOR REELECTION AS GOVERNOR AND THEN SERVED AS
HIS CHIEF OF STAFF AFTER HE WAS RETURNED TO OFFICE IN 1982 SHE RAN HIS
SUCCESSFUL REELECTION CAMPAIGNS IN 1982 1984 AND 1986

THERE IS NO PERSON IN THE ENTIRE UNIVERSE WHO IS MORE LOYAL TO BILL AND
HILLARY CLINTON THAN BETSEY SAYS MS WEXLER

MS WRIGHT IS ALMOST AS PROTECTIVE OF THE STATE OF ARKANSAS SHE LOVES THE
PLACE WHEN MR CLINTON DECIDED TO RUN FOR PRESIDENT MS WRIGHT SAW THAT
EACH OF THE HARDEDGED HANDLERS HE HIRED WAS GIVEN A COPY OF DIANE BLAIR'S
BOOK ABOUT ARKANSAS GOVERNMENT AND THE STATE'S RICH AND SOMETIMES GAMEY
POLITICAL HISTORY SHE WANTED THEM TO READ THE BOOK AND LEARN TO APPRECIATE
ARKANSAS'S RURAL CHARMS

THE FACT THAT NONE OF MR CLINTON'S HIRED GUNS SHE CALLS THEM THE WHITE
BOYS READ THE BOOK OR TRIED TO GIVE ARKANSAS A FAIR SHAKE STILL RILES
HER THEY SHOWED SO MUCH DISDAIN TOWARDS THE STATE I FELT IT WAS VERY
OFFENSIVE SHE SAYS

AT A CAMPAIGNMANAGERS' SEMINAR AT HARVARD UNIVERSITY'S INSTITUTE OF
POLITICS AFTER THE ELECTION SHE UNLOADED ON THE ATTITUDES OF A NUMBER OF
MR CLINTON'S HANDLERS FINGERING POLLSTER STANLEY GREENBERG AS BEING
PARTICULARLY NASTY ABOUT ARKANSAS AND WHAT MR CLINTON HAD DONE FOR THE
STATE DURING THE 12 YEARS HE WAS ITS GOVERNOR I DON'T KNOW WHY I SINGLED
HIM MR GREENBERG OUT SHE SAYS HE WASN'T ANY WORSE THAN THE REST OF
THEM

SHE IS INTENSE ABOUT HER CLINTONARKANSAS CONNECTION AND IT WAS THIS
INTENSITY THAT OFTEN LED THE CAMPAIGN HANDLERS TO WORK AROUND HER DURING THE
CAMPAIGN IN WHICH SHE WAS OFFICIALLY LISTED AS DEPUTY CHAIRMAN THE
HANDLERS WON'T SOON FORGET THE TIME SHE SET OUT TO REBUT CHARGES THAT MR
CLINTON HAD RAISED TAXES AND FEES IN ARKANSAS SOMETHING LIKE 128 TIMES NOT
SO SHE TOLD REPORTERS IT WAS ONLY ABOUT 110 TIMES AN ADMISSION THAT
LEFT SENIOR STRATEGIST JAMES CARVILLE SPEECHLESS

SHE CONTINUES TO VIEW THE WHITE BOYS LEFT OVER FROM THE CAMPAIGN AND STILL
WORKING FOR MR CLINTON WITH DEEP SUSPICION SHE LAYS THE WHITE HOUSE'S
PROBLEMS IN DEALING WITH THE WHITEWATER CONTROVERSY TO THE FACT THAT NONE
OF THEM KNEW ANYTHING ABOUT THE ISSUE THERE WAS NO CONTINUITY THEY
COULDN'T CONNECT THE DOTS LEFT UNSAID WAS THE THOUGHT THAT SHE DID KNOW
SOMETHING ABOUT WHITEWATER AND COULD HAVE DONE A BETTER JOB CONNECTING THE
DOTS

AND SO WHEN IT COMES TO LOBBYING THE WHITE HOUSE NOT EVERYONE WORKING
THERE IS HER FRIEND SHE PREFERS TO DEAL WITH OLD FRIENDS AND COLLEAGUES
FROM ARKANSAS WHOSE CONNECTIONS TO THE CLINTONS GO BACK BEYOND THE CAMPAIGN
FORTUNATELY WASHINGTON SWARMS WITH THEM IT'S NICE SHE SAYS I CAN'T
WALK MUCH MORE THAN A BLOCK OR SO WITHOUT BUMPING INTO SOMEONE FROM
ARKANSAS

SHE WAS FIRST USED AT WEXLER GROUP TO LOBBY FOR NAFTA WORKING MOSTLY TO
DRUM UP SUPPORT FROM GOVERNORS AND MAYORS I MUST SAY I WAS IMPRESSED
SAYS CRAIG FULLER A FORMER HIGHRANKING AIDE TO GEORGE BUSH AND NOW SENIOR
VICE PRESIDENT OF PHILIP MORRIS COS WHO WORKED WITH MS WRIGHT ON THE
NAFTA CAMPAIGN WE WERE AT THE WHITE HOUSE ALMOST EVERY DAY AND SHE WON
THE RESPECT OF A LOT OF PEOPLE

SHE HAS ALSO USED HER CONNECTIONS TO SET UP WHITE HOUSE MEETINGS FOR
REPRESENTATIVES OF THE PAPER INDUSTRY IN THEIR EFFORTS TO WATER DOWN FEDERAL
PROVISIONS ON HOW MUCH RECYCLED WASTE SHOULD BE CONTAINED IN PAPER BOUGHT BY
THE FEDERAL GOVERNMENT THE WEXLER FIRM'S CLIENT IS THE AMERICAN FOREST AND
PAPER ASSOCIATION

MS WRIGHT ALSO HAS PUT IN A LOT OF TIME WITH AN OBSCURE CONGRESSIONALLY
SPONSORED AGENCY CALLED THE COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
BETTER KNOWN TO ITS FRIENDS AS CONNIE LEE CONGRESS SET UP CONNIE LEE IN
1987 TO GUARANTEE LOWRATED BONDS FOR BUILDING PROGRAMS AT COLLEGES AND
UNIVERSITIES THE CONGRESSIONAL THINKING WAS THAT THE PRIVATE MARKET WOULD
COVER THE INSURANCE FOR THE HIGHERRATED BONDS

BUT WITH SUCH RESTRICTIONS IN ITS OPERATING CHARTER PROFITSEEKING CONNIE
LEE HASN'T HAD MUCH OF A CHANCE TO SPREAD ITS WINGS AND SO IT HAS TURNED TO
MS WRIGHT AND WEXLER GROUP TO LOBBY THE WHITE HOUSE AND CONGRESS FOR
PERMISSION TO EXPAND ITS INSURANCE BUSINESS TO BOND ISSUES FOR SECONDARY AND
ELEMENTARY SCHOOLS AND POSSIBLY TO BOND ISSUES FOR INFRASTRUCTURE WORK 
EVERYTHING FROM BRIDGES TO SEWERS

MS WRIGHT SAYS SHE KNOWS A LOT ABOUT THIS LINE OF BUSINESS FROM HER DAYS IN
LITTLE ROCK PEOPLE KEEP SAYING IF YOU COME FROM LOCAL GOVERNMENT YOU DON'T
KNOW ANYTHING ABOUT WASHINGTON THAT'S A CROCK WE'VE BEEN THE ONES DEALING
FOR YEARS WITH ALL THESE PROGRAMS DUMPED ON US BY THE FEDERAL GOVERNMENT

BETSEY WRIGHT HAS BEEN VERY EFFECTIVE SAYS OLIVER SOCKWELL CONNIE LEE'S
AMBITIOUS PRESIDENT SHE HAS AN ALMOST UNIQUE SKILL TO TRANSLATE HIGHLY
COMPLEX ISSUES INTO WORDS THAT EVERYONE CAN UNDERSTAND

MS WRIGHT HAS NOW REACHED THE POINT WHERE SHE GETS CREDIT FOR PULLING OFF
LOBBYING COUPS IN SITUATIONS WHERE SHE HAS BARELY BEEN INVOLVED IT WAS
RUMORED FOR EXAMPLE THAT SHE WAS A PIVOTAL FACTOR IN GETTING PRESIDENT
CLINTON TO INTERVENE IN THE AMERICAN AIRLINES STRIKE JUST BEFORE
THANKSGIVING AND THAT A GRATEFUL AIRLINE HAD PAID OUT 1 MILLION TO THE
WEXLER FIRM IN ACKNOWLEDGEMENT RIDICULOUS SAYS MS WEXLER MS WRIGHT
WAS BARELY INVOLVED WITH THE STRIKE ACCORDING TO SEVERAL PEOPLE FAMILIAR
WITH THE SITUATION

MS WRIGHT SEE NOTHING WRONG IN BLENDING PERSONAL RESCUE MISSIONS FOR THE
PRESIDENT WITH HER LOBBYING EFFORTS INSIDE THE ADMINISTRATION I'M VERY
CAREFUL NOT TO ABUSE THE RELATIONSHIP SHE SAYS WHEN I CALL PEOPLE I
ALWAYS MENTION THE SUBJECT I WANT TO TALK ABOUT AND I ALWAYS IDENTIFY MY
CLIENT 9401180037 940118 CREDIT MARKETS S&P UNVEILS ITS RATINGS OF
BOND FUND VOLATILITY BUT ONLY 19 FUNDS AGREE TO DISCLOSE RANKINGS  
BY BARBARA DONNELLY GRANITO AND GENE COLTER STAFF REPORTERS OF THE WALL
STREET JOURNAL

NEW YORK STANDARD & POOR'S CORP'S RISK RATINGS FOR BOND FUNDS HAD A
FRUSTRATING START YESTERDAY AS ONLY 19 FUNDS OUT OF ROUGHLY 100 CANDIDATES
AGREED TO MAKE THEIR NEW GRADES PUBLIC

THE RATINGS WHICH ATTEMPT TO GAUGE THE FUTURE VOLATILITY OF BOND FUNDS'
RETURNS ARE USEFUL FOR COMPARING FUNDS WITH SIMILAR INVESTMENT OBJECTIVES
THEY'RE INTENDED TO HELP INVESTORS SPOT HIDDEN MARKET RISKS AMONG FUNDS THAT
OTHERWISE LOOK LIKE SAFE BETS

FOR INSTANCE AMONG FUNDS RATED TRIPLEA FOR CREDITWORTHINESS ONLY THE AIM
LIMITED MATURITY FUND ALSO CARRIES A TRIPLEA RATING FOR MARKET RISK
ACCORDING TO S&P'S LIST BY CONTRAST THE SMITH BREEDEN SHORT DURATION US
GOVERNMENT FUND RATES A DOUBLEAPLUS FOR MARKET RISK WHILE THE TNE
GOVERNMENT SECURITIES FUND RATES JUST A SINGLEAPLUS FOR MARKET RISK

UNLIKE CREDIT RATINGS WHICH MEASURE THE ABILITY OF BOND ISSUERS TO REPAY
DEBT THE MARKETRISK RATINGS ARE SUPPOSED TO GAUGE HOW WELL A BOND FUND
MIGHT DO UNDER A VARIETY OF MARKET CHANGES SUCH AS A SWING IN INTEREST
RATES OR HOW LIKELY IT IS THE FUND MIGHT GET HIT BY ITS RELIANCE ON
DERIVATIVES

ALSO LIQUIDITY AND CREDIT ANALYSIS AND EVEN ASSESSMENTS OF MANAGERS'
PERFORMANCES WILL BE CONSIDERED IN THE RISK RATINGS S&P SAID THE AGENCY
WILL USE STRESS TEST MODELS TO ANTICIPATE THESE VARIABLES

THE 19 FUNDS THAT HAVE BEEN RATED BY S&P FOR MARKET RISK HAVE A TOTAL OF
NEARLY 4 BILLION IN ASSETS

THE ONLY ACTIVE SECTOR OF THE US BOND MARKET YESTERDAY WAS THE BOND
FUTURES MARKET AT THE CHICAGO BOARD OF TRADE WHERE PRICES DROPPED SLIGHTLY
MOST OTHER SECTORS OF THE MARKET WERE CLOSED IN OBSERVANCE OF THE MARTIN
LUTHER KING JR HOLIDAY BOND FUTURES CONTRACTS ARE AGREEMENTS TO BUY OR
SELL A TREASURY SECURITY AT A SET PRICE AT A SPECIFIED DATE

IN GAUGING THE PROSPECTIVE FUTURE PERFORMANCE OF A FUND S&P'S RATINGS WILL
DIFFER FROM THOSE OF MORNINGSTAR INC THE CHICAGO NEWSLETTER SERVICE
BECAUSE THE MORNINGSTAR RATINGS RELY ONLY ON PAST PERFORMANCE

WHILE INVESTORS SHOULD LOOK AT PAST PERFORMANCE THEY SHOULD BE AWARE THAT
MORE THAN HALF OF THE BOND FUNDS MARKETED TODAY HAVE BEEN IN EXISTENCE LESS
THAN FIVE YEARS UNDER FAVORABLE FALLING INTERESTRATE CONDITIONS
ACCORDING TO SANFORD BRAGG S&P MANAGING DIRECTOR

S&P SAID IT WILL RATE FUNDS USING A LOWERCASE LETTER SCALE RANGING FROM
TRIPLEA THE LEAST VOLATILE TO TRIPLEC THE MOST VOLATILE THE RATINGS
WILL BE UPDATED EVERY MONTH

INVESTORS CAN RECEIVE A FREE COPY OF S&P'S GUIDE TO BOND FUND SAFETY
WHICH PROVIDES AN UPTODATE LISTING OF RATED FUNDS WITH DETAILS OF WHAT'S
BEHIND THE RATINGS BY CALLING 1800424FUND

MEANWHILE THE MARCH 30YEAR TREASURY BOND FUTURE CONTRACT DROPPED A BIT
MORE THAN 1/8 POINT TO 115 9/32 AFTER TRADING BETWEEN 115 8/32 AND 115
17/32 THE MARCH 10YEAR NOTE FUTURE CONTRACT DROPPED 1/8 POINT TO 113 7/32

TRADERS AT THE CHICAGO BOARD OF TRADE AND CHICAGO MERCANTILE EXCHANGE SAID
VOLUME WAS LIGHT AND ACTIVITY FEATURELESS THE BOND FUTURES MARKET CLOSED AT
1 PM EST IN OBSERVANCE OF THE HOLIDAY

A RALLY IN CRUDE OIL AND GOLD PRICES WERE CITED AS CONTRIBUTING FACTORS TO
THE SLIGHT BEARISH TONE IN THE INTERESTRATE FUTURES FEBRUARY CRUDE OIL
FUTURES ROSE 32 CENTS A BARREL TO 1510 AFTER TRADING BETWEEN 1478 AND
1529 FEBRUARY GOLD FUTURES ROSE 210 AN OUNCE HIGHER TO 39220

BOND FUTURES TRADERS SAID THEY DIDN'T SEE ANY REACTION TO THE NEWS OF THE
LOS ANGELES EARTHQUAKE TRADERS SAID THEY WOULD EXPECT TO SEE A SELLOFF AS
INSURANCE COMPANIES LIQUIDATE THEIR INVESTMENTS IN ORDER TO MAKE PAYMENTS

IN OVERSEAS TRADING TREASURY BOND PRICES DROPPED SLIGHTLY THE BENCHMARK
30YEAR BOND DROPPED NEARLY 1/4 POINT FROM LATE FRIDAY IN NEW YORK OR
NEARLY 250 FOR A BOND WITH 1000 FACE VALUE TO 99 7/32 TO YIELD 631
UP FROM 629

THE TREASURY IS TO ANNOUNCE TOMORROW DETAILS OF ITS TWOYEAR AND FIVEYEAR
NOTE AUCTIONS WHICH ARE SET FOR NEXT WEEK

THE TREASURY'S WEEKLY AUCTION OF THREEMONTH AND SIXMONTH BILLS USUALLY
HELD ON MONDAY WILL BE HELD TODAY BECAUSE OF THE MARTIN LUTHER KING
HOLIDAY 9401180036 940118 INTERNATIONAL BRIEF NISSAN MOTOR CO MORE
FURLOUGHS ARE PLANNED FOR FISCAL YEAR'S FIRST HALF

JAPAN'S NISSAN MOTOR CO SAID IT WILL CONTINUE TO FURLOUGH WORKERS AT ITS
DOMESTIC PLANTS IN THE FIRST HALF OF THE FISCAL YEAR STARTING APRIL 1 AND
THAT IT PLANS SEVERAL TEMPORARY SHUTDOWNS IN SOME OR ALL OF ITS FIVE MAIN
PLANTS IN THE CURRENT HALF

A SPOKESWOMAN SAID THAT DURING THE CURRENT HALF NISSAN ON SEVEN DAYS CLOSED
SOME OR ALL OF ITS FOUR ASSEMBLY PLANTS AND ONE ENGINE PLANT SHE SAID THE
COMPANY PLANS TO IDLE THEM AGAIN FOR TWO TO FIVE DAYS IN JANUARY AND
FEBRUARY

THE SPOKESWOMAN ADDED THAT THE NUMBER AND EFFECTS OF THE FURLOUGHS IN NEXT
FISCAL YEAR'S FIRST HALF WILL BE SIMILAR TO THOSE IN THE CURRENT HALF

MEANWHILE AT A NEWS CONFERENCE NISSAN PRESIDENT YOSHIFUMI TSUJI SAID THAT
FREEZING WORKERS' PAY AT THIS YEAR'S LEVELS IS ONE OF THE OPTIONS FOR THE
COMPANY 9401180035 940118 WHO'S NEWS PANHANDLE EASTERN CORP

PANHANDLE EASTERN CORP HOUSTON WILLIAM L THACKER JR PRESIDENT OF
THIS NATURAL GAS PIPELINE COMPANY'S TEXAS EASTERN PRODUCTS PIPELINE UNIT
WAS NAMED CHIEF EXECUTIVE OF THE UNIT MR THACKER 48 SUCCEEDS CLIFFORD W
RACKLEY 70 WHO REMAINS CHAIRMAN OF THE UNIT 9401180034 940118 BUSINESS
BRIEF ICC TECHNOLOGIES INC TRANSFER OF ALMOST ALL ASSETS TO JOINT
VENTURE APPROVED

ICC TECHNOLOGIES INC SAID ITS SHAREHOLDERS APPROVED THE TRANSFER OF
SUBSTANTIALLY ALL OF THE COMPANY'S ASSETS TO A JOINT VENTURE WITH ENGELHARD
CORP IN RETURN FOR A 50 STAKE IN THE VENTURE WHICH WILL DEVELOP
AIRCONDITIONING SYSTEMS

ICC TECHNOLOGIES A PHILADELPHIA MAKER OF AIRCONDITIONING SYSTEMS SAID
ENGELHARD WILL CONTRIBUTE 10 MILLION AND PROVIDE CREDIT SUPPORT OF 3
MILLION ALONG WITH CERTAIN TECHNOLOGY RIGHTS TO THE JOINT VENTURE
ENGELHARD OF ISELIN NJ MAKES SPECIALTYCHEMICAL PRODUCTS AND OTHER
MATERIALS AND ITS ABSORPTION MATERIALS WILL BE USED IN THE COOLING AND
DEHUMIDIFICATION SYSTEMS DEVELOPED BY THE JOINT VENTURE

WHEN THE TRANSACTION IS COMPLETED ICC TECHNOLOGIES WILL BECOME PRINCIPALLY
A HOLDING COMPANY WITH THE VENTURE STAKE AS ITS PRIMARY ASSET ITS STOCK
WILL CONTINUE TO TRADE ON THE NASDAQ STOCK MARKET AS A SMALLCAPITALIZATION
ISSUE 9401180033 940118 WHO'S NEWS BIRMINGHAM STEEL CORP

BIRMINGHAM STEEL CORP BIRMINGHAM ALA THOMAS N TYRRELL WAS NAMED A
DIRECTOR OF THIS STEELMAKER MR TYRRELL 48 YEARS OLD IS PRESIDENT OF
AMERICAN STEEL & WIRE CORP WHICH BIRMINGHAM STEEL ACQUIRED IN NOVEMBER HE
SUCCEEDS CHARLES M PIGOTT 64 WHO DIDN'T STAND FOR REELECTION AT THE
OCTOBER ANNUAL MEETING MR PIGOTT IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER
OF PACCAR INC 9401180032 940118 INTERNATIONAL BRIEF JAPAN AIRLINES 
PURCHASE OF SMALLER PLANES PLANNED FOR DOMESTIC PUSH

JAPAN AIRLINES THE LARGEST AIRLINE IN JAPAN IS CONSIDERING BUYING SMALLER
AIRPLANES FOR USE IN DOMESTIC AIRLINE ROUTES IN AN ATTEMPT TO GRAB A BIGGER
MARKET SHARE IN JAPAN

A SPOKESMAN SAID JAL INTENDS TO BUY SMALLER AIRPLANES WITH 100 TO 200 SEATS
TO IMPROVE PROFITABILITY ON DOMESTIC ROUTES WHERE DEMAND ISN'T SO STRONG

HOWEVER THE SPOKESMAN SAID SUCH DETAILS AS WHAT TYPE OF AIRCRAFT WHEN THE
AIRCRAFT WILL BE INTRODUCED AND THE TOTAL PURCHASING COSTS HAVEN'T BEEN
DECIDED

CURRENTLY JAL OPERATES THREE TYPES OF AIRCRAFT ON 31 DOMESTIC ROUTES
BOEING 747S WHICH HAVE 568 SEATS EACH DC10S WITH 318 SEATS AND BOEING
767S WITH 270 SEATS

INTERNATIONAL FLIGHTS ACCOUNT FOR 70 OF JAL'S REVENUE BUT PLANS DEPEND ON
INCREASING DOMESTIC OPERATIONS TO 40 FROM THE CURRENT 30 TO OFFSET LOSSES
DUE TO CURRENCY MOVEMENTS

AT THE SAME TIME THE COMPANY IS PLANNING TO EXPAND DOMESTIC MARKET SHARE TO
33 FROM THE CURRENT 22 9401180031 940118 WHO'S NEWS TELXON CORP

TELXON CORP AKRON OHIO WALTER J SALMON 63 YEARS OLD WAS ELECTED A
DIRECTOR OF THIS MAKER OF HANDHELD PORTABLE COMPUTER SYSTEMS DR SALMON IS
A PROFESSOR OF RETAILING AT THE HARVARD GRADUATE SCHOOL OF BUSINESS
ADMINISTRATION HIS SELECTION RAISES THE NUMBER OF BOARD MEMBERS TO SEVEN
9401180030 940118 INTERNATIONAL BRIEF MAZDA MOTOR CORP SALES IN
JAPAN ARE EXPECTED TO GAIN 78 DURING 1994

MAZDA MOTOR CORP SAID IT EXPECTS DOMESTIC SALES FOR 1994 TO REBOUND 78
FROM LAST YEAR BUT EXPORTS TO EDGE DOWN 16

DOMESTIC SALES WOULD BE 440000 UP FROM LAST YEAR'S 408000 WHICH WAS OFF
16 FROM THE YEAR BEFORE EXPORTS WOULD BE 670000 DOWN FROM 681000 WHICH
WAS OFF 15 FROM THE YEAR BEFORE

MAZDA WHICH IS 25OWNED BY FORD MOTOR CO ALSO FORECAST THAT TOTAL
PRODUCTION WILL INCREASE 73 TO 11 MILLION UNITS LAST YEAR PRODUCTION
WAS DOWN 20

FUMIHIKO ARAKAWA MAZDA'S SENIOR MANAGING DIRECTOR IN CHARGE OF DOMESTIC
MARKETING AND SALES SAID THE COMPANY EXPECTS DEMAND FOR AUTOS IN JAPAN WILL
PICK UP IN THE SECOND HALF WITH HELP FROM PROSPECTIVE FURTHER FISCAL
STIMULUS BY THE GOVERNMENT

MR ARAKAWA ALSO BELIEVES THAT CONSUMERS AFTER HOLDING BACK ON PURCHASES
WILL SOON NEED TO REPLACE OLDER CARS 9401180029 940118 SOUTHERN
CALIFORNIA EARTHQUAKE MANY BUSINESSES ARE DISRUPTED BUT MOST DAMAGE IS
NEAR EPICENTER  A WALL STREET JOURNAL ROUNDUP

MANY BUSINESSES WITH OPERATIONS IN LOS ANGELES WERE DISRUPTED BY THE
EARTHQUAKE COMPANIES SHUT PLANTS AND OFFICES RETAILERS REPORTED HEAVY
DAMAGE TO SOME STORES AND AIRLINES CANCELED OR DELAYED FLIGHTS

BUT THE DAMAGE APPARENTLY WASN'T WIDESPREAD WHILE BUSINESSES CLOSE TO THE
QUAKE'S EPICENTER WERE HIT HARD OFFICES JUST 20 MILES AWAY WERE UNTOUCHED
ALSO THE EARTHQUAKE OCCURRED AT 431 AM PST A TIME WHEN TRAFFIC WAS
LIGHT AND ON A DAY WHEN MANY WORKERS WERE OFF FOR THE MARTIN LUTHER KING
JR HOLIDAY

NEVERTHELESS IT WAS DIFFICULT TO ASSESS THE FULL EXTENT OF THE DAMAGE AND
IT WASN'T CLEAR WHEN MANY BUSINESSES WOULD GET BACK TO NORMAL THE LOCAL
PHONE NETWORK EMERGED FROM THE QUAKE RELATIVELY INTACT BUT CALLING INTO AND
OUT OF THE AREA WAS DIFFICULT TO IMPOSSIBLE THROUGHOUT THE DAY BECAUSE OF
THE HEAVY VOLUME OF CALLING MANY COMPANIES HAD DIFFICULTY CONTACTING THEIR
OPERATIONS IN THE LOS ANGELES AREA

RETAILERS WERE HIT PARTICULARLY HARD RH MACY & CO REPORTED EXTENSIVE
DAMAGE AT ITS STORES IN LOS ANGELES IT SAID EIGHT DEPARTMENT STORES IN ITS
BULLOCK'S CHAIN WERE HIT WITH THE NORTHRIDGE MALL STORE AT THE VERY
EPICENTER OF THE QUAKE A MACY SPOKESWOMAN SAID THAT STORE SUFFERED
EXTENSIVE STRUCTURAL DAMAGE AND SPRINKLERS THAT WENT OFF IN THE STORE
DAMAGED SOME MERCHANDISE MACY SAID NONE OF ITS EMPLOYEES WERE INJURED
THOUGH ALL EIGHT OF THE STORES REMAINED CLOSED YESTERDAY

DAYTON HUDSON CORP SAID 10 OF ITS MERVYN'S DEPARTMENT STORES AND FROM SIX
TO 12 OF ITS TARGET DISCOUNT STORES WERE DAMAGED A SPOKESWOMAN SAID FIVE
MERVYN'S STORES SUSTAINED A GREAT DEAL OF DAMAGE INCLUDING BUCKLED WALLS
FALLEN CEILING TILE AND WATER DAMAGE FROM SPRINKLERS WHILE TWO TARGET
STORES HAD MAJOR STRUCTURAL DAMAGE

TWO EMPLOYEES AT A TARGET STORE IN VALENCIA WERE INJURED WHEN STOCKROOM
SHELVING TOPPLED OVER ON THEM THE SPOKESWOMAN SAID THEY WERE TAKEN TO AN
AREA HOSPITAL BY AMBULANCE BUT THAT SHE DIDN'T KNOW THE EXTENT OF THEIR
INJURIES AT ONE TARGET STORE IN GRANADA HILLS 98 OF THE CEILING TILE HAD
FALLEN THAT WOULD MEAN A LOT OF MERCHANDISE ON THE SHELVES IS ALSO DOWN
THE SPOKESWOMAN ADDED

SEARS ROEBUCK & CO SAID 10 OF ITS 27 LOS ANGELESAREA STORES SUFFERED
DAMAGE AND EIGHT REMAINED CLOSED YESTERDAY IT SAID ANOTHER WAS CLOSED
BECAUSE OF LACK OF POWER A SPOKESMAN FOR CARTER HAWLEY HALE STORES INC
SAID MANY IF NOT ALL OF THE COMPANY'S 11 STORES IN THE AREA WERE CLOSED
AS WAS THE LOS ANGELES HEADQUARTERS

IN THE LOS ANGELES BASIN POWER OUTAGES SWEPT THROUGHOUT MUCH OF THE AREA AS
TRANSMISSION SUBSTATIONS TRANSFORMERS AND POWER LINES WENT DOWN OFFICIALS
AT SOUTHERN CALIFORNIA EDISON THE UTILITY OPERATING UNIT OF SCECORP
INITIALLY REPORTED 750000 OF ITS APPROXIMATELY FOUR MILLION CUSTOMERS
WITHOUT POWER SCE'S SERVICE TERRITORY SURROUNDS LOS ANGELES STRETCHING TO
THE NEVADA AND ARIZONA BORDERS THE COMPANY SAID ITS KEY PARDEE SUBSTATION
WHICH SERVES SEVERAL HUNDRED THOUSAND CUSTOMERS HAD BEEN HIT VERY HARD

BY MIDAFTERNOON 125000 OF THE UTILITY'S CUSTOMERS HAD REGAINED POWER BUT
A SPOKESWOMAN SAID UNTIL PHYSICAL INSPECTIONS OF DAMAGED AREAS HAD BEEN
COMPLETED IT WOULD BE DIFFICULT TO ESTIMATE WHEN POWER WOULD BE RESTORED TO
ALL ITS CUSTOMERS

SOUTHERN CALIFORNIA GAS SAID OUTAGES AND DAMAGES CENTERED ON THE NORTHWEST
SECTOR OF LOS ANGELES COUNTY WITH ABOUT 800 TO 1200 HOMES WITHOUT SERVICE
AT MIDDAY THE GAS UTILITY SAID FOUR TRANSMISSION PIPELINES AND 20
DISTRIBUTION LINES AND NUMEROUS SERVICE LINES HAD SUSTAINED DAMAGE THE
COMPANY SAID ALL GAS BREAKS WERE UNDER CONTROL BY EARLY AFTERNOON

THE EARTHQUAKE ALSO RATTLED THE INTERWOVEN ELECTRICITY GRID SYSTEM CAUSING
SCATTERED OUTAGES AS FAR NORTH AS ALBERTA AND BRITISH COLUMBIA IN IDAHO
ABOUT 110000 CUSTOMERS LOST POWER FOR THREE HOURS AS THE GRID SOUGHT TO
CORRECT LOAD PROBLEMS STEMMING FROM THE QUAKE

COMMUNICATIONS COMPANIES WERE BURDENED BY THE HEAVY VOLUME OF CALLERS IN
SOME CASES LOS ANGELES RESIDENTS HAD TO WAIT 30 SECONDS OR MORE TO GET A
DIAL TONE INCOMING CALLERS OFTEN FOUND THEMSELVES LISTENING TO A RECORDING
INDICATING THAT ALL CIRCUITS WERE BUSY THERE WERE REPORTS OF SOME SCATTERED
BREAKS IN THE NETWORK THAT CAUSED SOME AREAS TO LOSE PHONE SERVICE BY LATE
AFTERNOON PACIFIC BELL SAID MOST AREAS HAD FULL PHONE SERVICE RESTORED

PACIFIC BELL WHICH HAS ABOUT 35 MILLION CUSTOMERS IN THE AFFECTED AREA
ASKED THE LONGDISTANCE COMPANIES AMERICAN TELEPHONE & TELEGRAPH CO MCI
COMMUNICATIONS CORP AND SPRINT CORP TO RESTRICT INCOMING CALLING INTO
SOUTHERN CALIFORNIA TO HELP KEEP LINES OPEN FOR EMERGENCY OUTGOING CALLS

AT&T SAID IT LOST SOME LONGDISTANCE SERVICES INTO AND OUT OF PARTS OF LOS
ANGELES DUE TO EQUIPMENT DAMAGE AND POWER FAILURE CAUSED BY THE QUAKE UNTIL
EQUIPMENT WAS BACK IN SERVICE AT&T WAS ASSISTING CUSTOMERS IN PLACING CALLS
AND PROVIDING ACCESS CODES SO THAT CUSTOMERS COULD PLACE THEIR CALLS OVER
THE NETWORKS OF OTHER COMPANIES INCLUDING RIVALS MCI AND SPRINT WHICH
REPORTED NO NETWORK OUTAGES

TRANSPORTATION COMPANIES ALSO WERE AFFECTED AS THE EARTHQUAKE COLLAPSED
HIGHWAYS AND DAMAGED RAIL LINES THE LOS ANGELES INTERNATIONAL AIRPORT WAS
CLOSED FOR ABOUT TWO HOURS DISRUPTING MANY FLIGHTS OTHER AREA AIRPORTS
ALSO WERE BRIEFLY CLOSED

UAL CORP'S UNITED AIRLINES SAID IT CANCELED AT LEAST 40 FLIGHTS STEMMING
FROM THE EARTHQUAKE USAIR GROUP INC'S USAIR SAID ONE OF ITS JETWAYS AT THE
AIRPORT WAS TWISTED A LITTLE BIT AND ITS TERMINAL LOST A FEW CEILING
TILES BUT BOTH AIRLINES SAID THEY BELIEVED BAD WEATHER ON THE EAST COAST
WOULD RESULT IN EVEN BIGGER DELAYS

THE EARTHQUAKE SHUT INTERSTATE HIGHWAY 5 THE PRIMARY TRAFFIC ARTERY BETWEEN
NORTHERN AND SOUTHERN CALIFORNIA WHEN A SECTION OF ROAD COLLAPSED AT AN
INTERSECTION THE CLOSURE CREATED LENGTHY DETOURS AND DELAYS FOR TRUCKERS
WE HAVE TO REROUTE FREIGHT TO THE EAST AND NORTH A COUPLE HUNDRED MILE
DETOUR SAID A SPOKESMAN FOR CONSOLIDATED FREIGHTWAYS INC WE'LL MOVE THE
FREIGHT BUT NOT WITHOUT EXPENSE AND NOT WITHOUT TROUBLE HE SAID

SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORP SAID A
SUBSTANTIAL SHIFT IN TRACK NEAR THE EPICENTER OF THE EARTHQUAKE DERAILED
ONE TRAIN THE COMPANY SAID THERE WERE NO INJURIES AMONG THE DERAILED CARS
WERE 16 TANK CARS THAT SPILLED 5000 GALLONS OF SPILLED SULFURIC ACID AND
3000 GALLONS OF SPILLED DIESEL FUEL THE COMPANY SAID VACUUM TRUCKS WERE
DISPATCHED TO THE SCENE

BUT IMPORTANT EASTWEST TRANSCONTINENTAL RAIL LINKS TO THE AREA ESCAPED THE
EARTHQUAKE WITH ONLY MINOR DELAYS AND ARE EXPECTED TO RETURN TO NORMAL
OPERATIONS TODAY RAILROAD OFFICIALS SAID

THE OILREFINING INDUSTRY OF CALIFORNIA THE NATION'S THIRDLARGEST BEHIND
TEXAS AND LOUISIANA WAS LARGELY UNHARMED ALTHOUGH SEVERAL PLANTS LOST
POWER AND MANY PIPELINES SHUT DOWN 9401180028 940118 EMPOWERMENT ZONE
PICKS ARE PLANNED BY EARLY FALL

WASHINGTON THE WHITE HOUSE SAID THE GOVERNMENT WILL DECIDE IN LATE SUMMER
OR EARLY FALL WHICH CITIES AND RURAL AREAS WILL GET 35 BILLION IN FEDERAL
TAX CREDITS AND GRANTS AS PART OF A PLAN TO REVIVE ECONOMICALLY BLIGHTED
AREAS VICE PRESIDENT AL GORE SAID

THE SELECTIONS COMING JUST IN TIME FOR MIDTERM ELECTIONS WILL GRACE FIVE
LARGE CITIES ONE MIDSIZED CITY AND THREE RURAL AREAS AS PART OF
LEGISLATION PASSED IN LAST YEAR'S DEFICITREDUCTION PACKAGE

THE SOCALLED EMPOWERMENT ZONES WILL SHARE 25 BILLION IN TAX INCENTIVES
MOSTLY WAGE CREDITS TO THOSE WHO HIRE RESIDENTS OF THE ZONES AND SOCIAL
SERVICE GRANTS TOTALING 720 MILLION THEY ALSO WILL GET AUTHORITY TO
FINANCE A VARIETY OF BUSINESSES WITH SPECIAL TAXEXEMPT BONDS ANOTHER 95
ENTERPRISE COMMUNITIES WILL SHARE 280 MILLION IN GRANTS AND AUTHORITY TO
USE THE SPECIAL BOND RULES

PRESIDENT CLINTON IN ANNOUNCING THE AVAILABILITY OF APPLICATIONS FOR THE
AID PROGRAM CALLED IT A NEW COMPACT TO HELP DISTRESSED COMMUNITIES

THE PROGRAM DIFFERS FROM LONGSTANDING REPUBLICAN MODELS FOR ENTERPRISE
ZONES WHICH RELIED ON TAX BREAKS FOR HUNDREDS OF AREAS AND CAPITALGAINS
TAX RELIEF TO INVESTORS IN THE ZONES 9401180027 940118 LETTERS TO THE
EDITOR HEALTH REFORM FINANCING IS SOUND

I AM VERY CONCERNED THAT THE ARTICLE BY THE HERITAGE FOUNDATION'S DANIEL J
MITCHELL DISTORTS THE POSITION OF OFFICE OF MANAGEMENT AND BUDGET ANALYSTS
WITH REGARD TO THE PRESIDENT'S HEALTHREFORM PLAN PRESIDENT'S COSTLY
BUDGETBUSTER EDITORIAL PAGE DEC 23 OMB ANALYSTS HELPED DEVELOP THE
PLAN'S FINANCING AND HAVE CONFIRMED ITS SOUNDNESS MOREOVER THE MOST
AUTHORITATIVE OUTSIDE STUDY OF THE HEALTH SECURITY ACT CONDUCTED BY
LEWINVHI AN INDEPENDENT CONSULTING GROUP WITH SPECIFIC EXPERTISE ON HEALTH
CARE ISSUES HAS VERIFIED THAT THE PLAN'S FINANCING WORKS AND WILL REDUCE
THE DEFICIT OVER THE PERIOD FROM 19952000

THE SECRET TABLES ON WHICH MR MITCHELL BASES HIS ARTICLE WERE NOTHING
MORE THAN SPECULATIVE COMPUTER SPREADSHEETS PREPARED BY AN ANALYST AT AN
EARLY STAGE IN THE DRAFTING OF THE HEALTH SECURITY ACT PURELY THEORETICAL
THEY APPLIED WHATIF SCENARIOS TO SOME OF THE ELEMENTS OF EARLY VERSIONS
OF THE HEALTHREFORM PLAN UNDER DISCUSSION LAST SUMMER ESSENTIALLY THE
TABLES ANSWERED A SERIES OF HYPOTHETICAL QUESTIONS WHAT IF WE CHOOSE THIS
OR THAT POLICY WHAT IF OUR ESTIMATES ARE TOO HIGH OR TOO LOW

UNCERTAINTIES IDENTIFIED BY THIS EXERCISE WERE THEN THOROUGHLY ADDRESSED IN
THE FINAL DRAFTING OF THE LEGISLATION THEREFORE THE TABLES DO NOT APPLY TO
THE LEGISLATION NOW BEFORE THE CONGRESS AND ARE NOT RELEVANT TO ANY
DISCUSSION OF THAT PLAN

INTERESTINGLY MR MITCHELL DOES NOT MENTION THE FACT THAT THE WHATIF
SCENARIOS IN THE TABLE INCLUDED ASSUMPTIONS THAT RESULTED IN LOWER COSTS AND
MUCH GREATER DEFICIT REDUCTION THOSE SCENARIOS WERE CLEARLY DELINEATED IN
THE TABLES BUT MR MITCHELL CHOSE TO IGNORE THEM APPARENTLY THEY DID NOT
FIT INTO HIS AGENDA

THE HEALTH SECURITY ACT CONTAINS A NUMBER OF SPECIFIC MEASURES TO ADDRESS
COST UNCERTAINTIES FOR EXAMPLE A 15 CUSHION WAS ADDED TO THE ESTIMATES
OF THE DISCOUNTS TO BE PROVIDED TO SMALL LOWWAGE FIRMS AND LOWINCOME
WORKERS BEYOND THAT WHATEVER FISCAL RISK REMAINS IS CONTAINED BY SPECIFIC
LANGUAGE IN THE ACT CAPPING FEDERAL EXPENDITURES IN THE UNLIKELY EVENT THAT
THOSE CAPS ARE BREACHED A FUTURE ACT OF CONGRESS WOULD BE NECESSARY TO
SPEND MORE MONEY MR MITCHELL DISMISSES THIS IMPLYING THAT CONGRESS MIGHT
NOT ENACT THE DISCIPLINES PROPOSED BY THE PRESIDENT BUT THAT IS NO GROUND
FOR CRITICIZING THE PLAN ITSELF ANY LEGISLATIVE PROPOSAL EVEN ONE
ENDORSED BY THE HERITAGE FOUNDATION CAN BE ALTERED BY CONGRESS IN A WAY
THE AUTHOR MIGHT DISAPPROVE 9401180026 940118 BUSINESS BRIEF SOUTHDOWN
INC DEFICIT FOR FOURTH QUARTER BEFORE CHARGES IS ESTIMATED

SOUTHDOWN INC SAID IT EXPECTS TO REPORT THAT IT BROKE EVEN IN THE FOURTH
QUARTER BEFORE ONETIME CHARGES TOTALING ABOUT 4 MILLION

THE HOUSTONBASED CEMENT AND CONCRETE COMPANY SAID THAT AFTER PROVIDING FOR
THE PAYMENT OF PREFERRED STOCK DIVIDENDS THE COMPANY WOULD REPORT A LOSS OF
FIVE TO 10 CENTS A SHARE BEFORE THE CHARGES

FOR 1992'S FOURTH QUARTER SOUTHDOWN HAD A LOSS OF 265 MILLION OR 164 A
SHARE AFTER A 214 MILLION CHARGE RELATED TO THE WRITEDOWN OF THE
COMPANY'S ENVIRONMENTALSERVICES ASSETS

YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SOUTHDOWN CLOSED AT
24875 UP 1125 OR 47 ON VOLUME OF 251700 SHARES 9401180025
940118 ECONOMY JAPAN IS PUSHED TO PROMISE 20 RISE IN PURCHASES OF
USMADE AUTO PARTS  BY WALL STREET JOURNAL REPORTERS BOB DAVIS
IN WASHINGTON AND KENNETH H BACON IN JAKARTA INDONESIA

THE US IS PUSHING JAPAN TO AGREE TO INCREASE ITS PURCHASES OF USMADE
AUTO PARTS BY ABOUT 20 A YEAR AS THE ADMINISTRATION BROADENS ITS PRESSURE
ON JAPAN TO MOVE ON STALLED TRADE TALKS

THE US POSITION UNDERSCORES A HARDLINE STRATEGY FOR GETTING JAPAN TO AGREE
TO TARGETS FOR INCREASING US IMPORTS MAKING JAPAN CHOOSE BETWEEN AN
AGREEMENT OR A BLOWUP IN RELATIONS WITH ITS MOST IMPORTANT ALLY JAPAN HAS
RESISTED THE CALL FOR TARGETS SO FAR LEAVING THE TALKS STALEMATED THE US
HAS INDICATED IT WOULD COMPROMISE ON ISSUES IT CONSIDERS OF SECONDARY
IMPORTANCE

PART OF THE US STRATEGY CALLS FOR GOING OVER THE HEADS OF JAPANESE
BUREAUCRATS WHOM THE US BLAMES FOR BLOCKING PROGRESS ON THE SOCALLED
FRAMEWORK NEGOTIATIONS TO THAT END TREASURY SECRETARY LLOYD BENTSEN IS
PLANNING TO MEET WITH JAPANESE FINANCE MINISTER HIROHISA FUJII ON SUNDAY
THE US WANTS THE JAPANESE GOVERNMENT WHICH NOW IS CONSUMED WITH A BATTLE
OVER POLITICAL REFORM TO FOCUS ON TRADE ISSUES AS WELL AND TO FOLLOW
THROUGH ON EARLIER PLEDGES TO STIMULATE THE ECONOMY THE US WANTS
AGREEMENT ON THESE ISSUES BEFORE PRIME MINISTER MORIHIRO HOSOKAWA VISITS
PRESIDENT CLINTON IN WASHINGTON ON FEB 11

THE MESSAGE THAT SECRETARY BENTSEN WILL BE CARRYING IS THE FRAMEWORK TALKS
ARE IMPORTANT TO OUR RELATIONSHIP AND NEED TO BE SUCCESSFUL SAID US
TRADE REPRESENTATIVE MICKEY KANTOR SPEAKING IN WASHINGTON

JEFFREY GARTEN UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE SAID THE
US HAD INFORMED JAPAN THAT IT EXPECTS THE RECENT GROWTH IN AUTOPARTS
PURCHASES BY JAPANESE COMPANIES TO CONTINUE ON ITS UPWARD SLANT FOR THE
YEAR ENDING MARCH 31 1995 JAPANESE CAR MAKERS HAVE PLEDGED TO BUY 19
BILLION OF US AUTO PARTS UP FROM 9 BILLION FOR THE YEAR ENDED MARCH 31
1991 THE TREND LINE IS ABOUT 20 HE SAID ALTHOUGH THE US EXPECTED
THAT THE ACTUAL RESULTS WOULD VARY FROM THAT FIGURE DEPENDING ON THE STATE
OF THE JAPANESE AUTO INDUSTRY THE US IS PRESSING JAPAN TO AGREE TO ANNUAL
INCREASES OF ABOUT 20 OVER THE NEXT THREE OR FOUR YEARS

THE FRAMEWORK TALKS HAVE DEADLOCKED OVER THE US INSISTENCE THAT JAPAN
AGREE TO TARGETS FOR ITS PURCHASES OF US GOODS JAPANESE NEGOTIATORS
MAINTAIN THAT THE US POSITION SMACKS OF MANAGED TRADE AND THEY SAY THAT
THE US AUTOPARTS INDUSTRY HAS PROBLEMS IN JAPAN BECAUSE OF POORQUALITY
GOODS THE US ARGUES THAT CLEARLY STATED TARGETS ARE NECESSARY OTHERWISE
THE US AND JAPAN WILL ENDLESSLY DEBATE THEIR TRADE DIFFERENCES WITHOUT
MAKING ANY REAL PROGRESS

AT THE SAME TIME MR GARTEN SIGNALED THAT THE US IS BACKING OFF FROM
SEVERAL OF THE MOST CONTROVERSIAL DEMANDS IT HAS MADE OF JAPAN IN THE AUTO
TALKS IN AN OCTOBER PROPOSAL TO JAPAN THE US URGED THAT SPECIAL
CONSIDERATION BE GIVEN BY JAPANESE CAR MAKERS TO NONJAPANESE US AUTO
PARTS MR GARTEN WHO ENTERED OFFICE AFTER THE PROPOSAL WAS MADE SAYS THE
US MERELY WANTS TO COLLECT SEPARATE DATA ON USOWNED AND JAPANESEOWNED
AUTOPARTS MAKERS IN THE US BUT NOT FAVOR THE USOWNED ONES

A NUMBER OF US LAWMAKERS FROM STATES WITH JAPANESEOWNED AUTOPARTS
PLANTS INCLUDING REPS BUTLER DERRICK D SC JOHN DUNCAN R TENN
PHILIP CRANE R ILL JOE KNOLLENBERG R MICH AND JOHN TANNER D
TENN HAVE WRITTEN PRESIDENT CLINTON COMPLAINING THAT THE ORIGINAL
PROPOSAL JEOPARDIZES THE EXISTING EMPLOYMENT OF US WORKERS IN JAPANESE
FACTORIES

IN ADDITION MR GARTEN SAID THAT THE US WASN'T LOOKING FOR THE JAPANESE
GOVERNMENT TO ORDER MANUFACTURERS TO BUY MORE US PARTS THE OCTOBER
PROPOSAL HAD CALLED FOR JAPANESE BUREAUCRATS TO ISSUE GUIDANCE TO CAR
MAKERS CONCERNING THEIR PURCHASES MR GARTEN NOW SAYS HE IS INVOLVED IN
INTENSIVE NEGOTIATIONS WITH JAPAN'S LEADING CAR MAKERS AND AUTO TRADE GROUPS
 AS WELL AS JAPAN'S TRADE NEGOTIATORS TO GET THE COMPANIES TO COMMIT TO
GREATER PURCHASES HE CALLED THOSE TALKS EXTREMELY CONSTRUCTIVE ALTHOUGH
HE ADDED THAT THE COMPANIES HADN'T COMMITTED TO ANYTHING YET

MR BENTSEN IS IN THE MIDST OF VISITING INDONESIA THAILAND AND CHINA TO
PROMOTE FREER TRADE THE TREASURY SECRETARY WANTS TO OFFER ASIA AN
ALTERNATIVE TO REGIONAL ECONOMIC HEGEMONY BY JAPAN AND PERHAPS CHINA IN
THE FUTURE THIS ADMINISTRATION RECOGNIZES THAT THERE IS MORE TO ASIA THAN
JAPAN MR BENTSEN TOLD THE INDONESIA ECONOMISTS ASSOCIATION BUT MR
BENTSEN'S LIKELY VISIT WITH MR FUJII SHOWS THAT THE US REMAINS
PREOCCUPIED WITH JAPAN THE US HAS A TRADE DEFICIT WITH JAPAN OF ABOUT 52
BILLION A YEAR

APART FROM JAPAN THE US IS TRYING TO BUILD STRONGER RELATIONS WITH THE
FASTGROWING ASIAN COUNTRIES THAT COULD BE LARGE CUSTOMERS OF US PRODUCTS
AND SERVICES FOR EXAMPLE INDONESIA ESTIMATES THAT IT WILL SPEND 113
BILLION ON INFRASTRUCTURE BEFORE THE END OF THIS DECADE US BANKS AND
BROKERS WANT TO HELP FINANCE THE PROJECTS AND US MANUFACTURERS WANT TO
COMPETE TO PROVIDE THE NEW TELECOMMUNICATIONS TRANSPORTATION AND OTHER
IMPROVEMENTS INDONESIA NEEDS BUT INDONESIA AND MANY OTHER EMERGING MARKETS
RESTRICT ACCESS BY US FIRMS

THE EMERGING MARKETS OF ASIA ARE PARTICULARLY IMPORTANT TARGETS OF US
ECONOMIC DIPLOMACY BECAUSE RAPID GROWTH AND HIGH INVESTMENT NEEDS MAKE THEM
GOOD TARGETS FOR US EXPORTS EXPORT EXPANSION HAS ACCOUNTED FOR ALMOST ALL
THE GROWTH IN US MANUFACTURING JOBS IN THE LAST DECADE AS ONE SIGN OF
EXPANDING INTEREST IN ASIAN TRADE MR BENTSEN SUGGESTED THAT THE US MAY
BE ABOUT TO LIFT ITS TRADE EMBARGO AGAINST VIETNAM I THINK YOU'LL SEE
SOMETHING FORTHCOMING SOON HE TOLD THE AMERICAN CHAMBER OF COMMERCE IN
INDONESIA 9401180024 940118 GEORGE WESTON DEBENTURE SALE

TORONTO GEORGE WESTON LTD SAID IT AGREED TO SELL TO UNDERWRITERS 200
MILLION CANADIAN DOLLARS US151 MILLION OF 10YEAR 745 UNSECURED
DEBENTURES

THE DEBENTURES WILL BE RESOLD TO THE PUBLIC BY THE UNDERWRITING GROUP LED
BY BURNS FRY LTD

GEORGE WESTON A FOODPROCESSING CONCERN SAID IT WILL USE THE PROCEEDS TO
RETIRE COMMERCIAL PAPER OUTSTANDING 9401180023 940118 INTERNATIONAL 
ERICSSON THAI UNIT'S GSM ORDER

STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID
ITS ERICSSON COMMUNICATIONS THAILAND LTD SUBSIDIARY HAS BEEN SELECTED BY
THAILAND'S ADVANCED INFO SERVICES LTD AS ITS MAJOR SUPPLIER OF GSM
EQUIPMENT GSM STANDS FOR GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS

THE INITIAL ORDER IS VALUED AT 100 MILLION KRONOR 122 MILLION ERICSSON
SAID ADDING THAT IT INCLUDES SWITCHING EQUIPMENT BASE TRANSCEIVER
STATIONS AND A NETWORK MANAGEMENT SYSTEM

THE COMMUNICATIONS SYSTEM IN BANGKOK WILL BE IN OPERATION IN MARCH AND AIS
IS PLANNING TO COVER ALL MAJOR PARTS OF THAILAND BY YEAR'S END ERICSSON
SAID 9401180022 940118 REDEMPTION NOTICES

THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE
REDEMPTION DURING THE WEEK ENDED JAN 14 1994 THE NOTICES ARE TAKEN FROM
ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT
MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE
DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER

GARFIELD COUNTY COLO WILL OPTIONALLY REDEEM ON FEB 15 1994 ITS
RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1980 A CONTINENTAL BANK
CHICAGO IS TRUSTEE

LAKEWOOD TOWNSHIP MUNICIPAL UTILITIES AUTHORITY WILL REDEEM ON FEB 15
1994 ITS 610 REVENUE BONDS SERIES A DUE NOV 1 2006 UNITED JERSEY
BANK HACKENSACK NJ IS ESCROW AGENT

MOFFAT COUNTY COLO WILL REDEEM ON FEB 15 1994 670000 PRINCIPAL
AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES A DUE FEB 15
1995 2001 AND 2012 CONTINENTAL BANK CHICAGO IS TRUSTEE

NEWARK HOUSING FINANCE CORP WILL REDEEM ON FEB 15 1994 15000 PRINCIPAL
AMOUNT OF ITS 12 MORTGAGE REVENUE BONDS DUE FEB 15 2024 UNITED JERSEY
BANK HACKENSACK NJ IS SUCCESSOR TRUSTEE

NEW YORK STATE ATOMIC & SPACE DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH 1
1994 440000 PRINCIPAL AMOUNT OF ITS 6125 GENERAL FACILITIES BONDS
SERIES A DUE MARCH 1 2002 MANUFACTURERS & TRADERS TRUST CO BUFFALO
NY IS TRUSTEE

PALM BEACH COUNTY HEALTH FACILITIES AUTHORITY WILL REDEEM ON FEB 16 1994
ITS FIRST MORTGAGE HOSPITAL REVENUE BONDS SERIES 1978 DUE JULY 1 OF THE
INDICATED YEARS 705 DUE 1994 AND 1995 710 DUE 1996 AND 1997 AND 750
DUE 2008 CHEMICAL BANK NEW YORK IS TRUSTEE

INDIANA MICHIGAN POWER CO WILL REDEEM ON FEB 13 1994 ITS 776
CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO OF NEW YORK IS
REDEMPTION AGENT

PUGET SOUND POWER & LIGHT CO WILL REDEEM ON FEB 14 1994 ITS 4 3/4
SERIES FIRST MORTGAGE BONDS DUE MAY 1 1994 PUGET SOUND POWER & LIGHT
BELLEVUE WASH AND BANCBOSTON TRUST CO OF NEW YORK ARE PAYING AGENTS
9401180021 940118 JAPAN'S CABINET ENDORSES PLAN TO OPEN PUBLICWORKS
MARKET TO FOREIGN BIDDERS  BY JACOB M SCHLESINGER AND JATHON
SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL

TOKYO JAPAN'S CABINET MOVED TO CLEAR AWAY ONE OF THE MOST NETTLESOME
TRADE DISPUTES WITH THE US ENDORSING A BROADRANGING PLAN TO OPEN THE
NATION'S PUBLICWORKS MARKET TO FOREIGN CONSTRUCTION COMPANIES

THE NEW GOVERNMENT PLAN REPLACES JAPAN'S UNIQUE CLOSED BIDDING PROCEDURES ON
LARGESCALE PROJECTS WITH A MORE USSTYLE OPEN BIDDING

IN WASHINGTON US OFFICIALS SAID THAT THEY HAD BEGUN A PRELIMINARY REVIEW
OF THE CONSTRUCTION PLAN AND THAT IT APPEARED TO ADDRESS MOST MAJOR US
CONCERNS THE CLINTON ADMINISTRATION HAD THREATENED TO IMPOSE SANCTIONS
AGAINST JAPAN IF IT DIDN'T MAKE REQUESTED CHANGES IN BIDDING PROCEDURES BY
THURSDAY

IT IS HIGHLY UNLIKELY THAT THE US WILL IMPOSE SANCTIONS NOW US
NEGOTIATORS HAVE BEEN WORKING WITH THEIR JAPANESE COUNTERPARTS SINCE OCTOBER
TO REACH A MUTUALLY AGREEABLE SYSTEM IN ADDITION THE US REALIZES THAT A
SANCTIONS BATTLE WOULD WRECK EFFORTS TO PERSUADE JAPAN TO REACH AGREEMENT IN
A BROADER SET OF TRADE NEGOTIATIONS CALLED THE FRAMEWORK TALKS

THE NEW JAPANESE PLAN SHOWS THAT AT LEAST IN SOME AREAS JAPAN'S POLITICAL
TRANSFORMATION CAN BENEFIT US INDUSTRY JAPAN'S CONSTRUCTION INDUSTRY WAS
THE MAJOR CONTRIBUTOR TO THE LIBERAL DEMOCRATIC PARTY WHICH HAD RULED JAPAN
FOR 38 YEARS UNTIL LAST SUMMER AND WHICH ACTIVELY PROTECTED CONTRACTORS
THE PARTY'S FALL STEMMED IN PART FROM A WAVE OF CONSTRUCTIONRELATED MONEY
SCANDALS

A MONTH AGO PRIME MINISTER MORIHIRO HOSOKAWA ALSO TOOK ON ANOTHER
LDPRELATED SPECIAL INTEREST JAPAN'S FARMERS AND AGREED TO END THE
COUNTRY'S BAN ON RICE IMPORTS

THE US IS ALSO HOPING THAT MR HOSOKAWA WILL ULTIMATELY SIDE WITH ITS
DEMANDS IN THE WIDERANGING FRAMEWORK TALKS THE TWO COUNTRIES ARE AIMING TO
REACH AN AGREEMENT BY FEB 11 WHEN MR HOSOKAWA IS SCHEDULED TO MEET WITH
MR CLINTON IN WASHINGTON BUT SO FAR US OFFICIALS SAY MAJOR
PHILOSOPHICAL DIFFERENCES REMAIN

THE CONSTRUCTION DISPUTE HAS BEEN ONE OF THE MOST TENSE BILATERAL TRADE
SPATS OVER THE PAST DECADE WITH US OFFICIALS CLAIMING THAT THE INDUSTRY
HAS BEEN A MICROCOSM OF THE CLOSED COZY NATURE OF THE JAPANESE SYSTEM

US CONSTRUCTION ENGINEERING AND DESIGN COMPANIES SAY IT HAS BEEN ALMOST
IMPOSSIBLE TO GET BUSINESS IN JAPAN WHERE FORMAL AND INFORMAL POLICIES
DISCOURAGE NEWCOMERS BIDRIGGING HAS BEEN RAMPANT AND PROJECTS ARE OFTEN
ASSIGNED YEARS BEFORE A FORMAL BID IS ANNOUNCED THE JAPANESE IN TURN HAVE
ARGUED THAT US COMPANIES HAVEN'T TRIED HARD ENOUGH TO GAIN BUSINESS HERE

UNDER A 1988 AFFIRMATIVEACTIONTYPE AGREEMENT US COMPANIES DID WIN SOME
BUSINESS ON SOME SPECIALLY DESIGNATED MAJOR PROJECTS BUT THEY SOON
COMPLAINED THAT PROGRESS WAS SLOW LEADING TO THE CLINTON ADMINISTRATION'S
LATEST DEMANDS FOR MORE SWEEPING CHANGES

THE NEW PLAN WHICH GOES INTO EFFECT APRIL 1 WILL INTRODUCE AN OPENBIDDING
PROGRAM FOR PUBLICWORKS PROJECTS ORDERED BY THE CENTRAL AND LOCAL
GOVERNMENTS AS WELL AS FOR 84 PUBLIC CORPORATIONS UNTIL NOW MOST JAPANESE
PUBLICWORKS PROJECTS WERE AWARDED THROUGH DESIGNATED BIDDING A MURKY
SYSTEM THROUGH WHICH COMPANIES HAD TO MEET UNCLEAR SPECIFICATIONS BEFORE
THEY COULD EVEN SUBMIT A BID

REPRESENTATIVES OF FOREIGN CONSTRUCTION COMPANIES IN JAPAN WERE GUARDEDLY
OPTIMISTIC ABOUT THE PROGRAM IN PRINCIPLE IT SOUNDS FINE SAID JOHN
DICKISON GENERAL MANAGER AT SCHAL BOVIS IN JAPAN BUT IT REMAINS TO BE
SEEN WHETHER THIS IS ANYTHING MORE THAN JUST AN UNDERTAKING ON PAPER

THE NEW PLAN WILL THROW OPEN TO COMPETITION CENTRALGOVERNMENT PROJECTS THAT
ARE WORTH MORE THAN A THRESHOLD OF 64 MILLION AT CURRENT EXCHANGE RATES
FOR PROJECTS COMMISSIONED BY REGIONAL GOVERNMENTS AND PUBLIC CORPORATIONS
THE NEW PLAN WILL APPLY TO PROJECTS OF MORE THAN 214 MILLION

US OFFICIALS HAD SAID EARLIER THAT THEY WANTED THE THRESHOLD TO BE LOW
ENOUGH TO ALLOW A MEANINGFUL INCREASE IN FOREIGN BUSINESS IT WASN'T CLEAR
WHETHER THE CABINET'S PLAN MET US EXPECTATIONS THE US OFFICIALS HAD
ALSO BEEN PRESSING JAPAN TO MAKE CLEAR THAT THE MARKET WOULD BE MORE OPEN TO
FOREIGN CONSTRUCTION MATERIALS SUCH AS GLASS IT ISN'T YET CERTAIN HOW THAT
WILL BE ADDRESSED 9401180020 940118 FLORIDA POWER TO CUT 300 JOBS

ST PETERSBURG FLA FLORIDA POWER CORP A UNIT OF FLORIDA PROGRESS
CORP SAID IT WILL ELIMINATE ABOUT 300 POSITIONS

THE COMPANY SAID THE POSITIONS ARE PART OF ENERGY DISTRIBUTION THE
COMPANY'S LARGEST OPERATING UNIT THIS AREA OF FLORIDA POWER'S OPERATIONS
INCLUDES ALL FUNCTIONS RELATED TO CUSTOMER SERVICE

FLORIDA POWER SAID THE AFFECTED WORK FORCE IS EMPLOYED THROUGHOUT THE
COMPANY'S 32COUNTY AREA OF SERVICE AND INCLUDES OFFICE TECHNICAL AND
FIELDSUPPORT POSITIONS 9401180019 940118 INTERNATIONAL ABB ASEA BROWN
WINS CONTRACT

ZURICH ABB ASEA BROWN BOVERI AG THE SWEDISHSWISS HEAVYENGINEERING
GROUP SAID IT RECEIVED AN ORDER VALUED AT MORE THAN 100 MILLION FOR A
COMBINED HEATING AND POWER PLANT COMPLEX AT GERA NEAR LEIPZIG IN EASTERN
GERMANY

THE ORDER FROM KRAFTWERKE GERA GMBH REPRESENTS THE SEVENTH FROM EASTERN
GERMANY FOR ABB TO BUILD OR REFURBISH POWER PLANTS THE COMPANY SAID

THE CONTRACT COVERS THE PLANNING OF A COMBINED HEATING AND POWER PLANT AT
GERA NORTH AND TWO ADDITIONAL PLANTS ONE FOR GERA CENTRAL AND THE OTHER
FOR GERA SOUTH ABB SAID

THE COMPANY SAID THE CONTRACT ALSO INCLUDES AN OPTION TO GO AHEAD WITH
CONSTRUCTION OF THE THREE PLANTS WHICH ARE SCHEDULED TO BEGIN OPERATION BY
MID1996

ABB ASEA BROWN BOVERI IS OWNED JOINTLY BY ASEA AB OF SWEDEN AND BBC BROWN
BOVERI AG OF SWITZERLAND 9401180018 940118 REVIEW & OUTLOOK EDITORIAL
 ASIDES DOUBLE FOUL

AMID THE LARGER HOOPLA OF A NEW GOVERNOR IN NEW JERSEY WE MUST NOTE AN
INITIAL POSITIVE DECISION BY CHRISTIE WHITMAN SHE'S DECIDED AGAINST USING
THE PUBLIC'S TAX DOLLARS TO BRIBE THE PROBASKETBALL 76ERS TO MOVE ACROSS
THE RIVER TO CAMDEN FROM PHILADELPHIA SHOULD HAVE BEEN A SLAM DUNK ANYWAY
HER STATE ENDURES ONE NBA LOSER ALREADY IN THE NETS 9401180017 940118
FOREIGN EXCHANGE DOLLAR DRIFTS HIGHER AGAINST THE MARK ON GERMAN
ECONOMY POLITICS IN RUSSIA  BY GARY ROSENBERGER SPECIAL TO THE
WALL STREET JOURNAL

NEW YORK THE DOLLAR DRIFTED HIGHER AGAINST THE MARK IN LIGHT HOLIDAY
TRADING AS THE MARK AGAIN FELL VICTIM TO THE ANEMIC GERMAN ECONOMY AND TO
POLITICAL INSTABILITY IN RUSSIA

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17553 MARKS UP FROM 17495
MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
11106 YEN UNCHANGED FROM FRIDAY STERLING WAS TRADING AT 14932 LITTLE
CHANGED FROM 14934

ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11093 YEN AND AT
17525 MARKS

TRADERS NOTED EARLY MARK SELLING IN FAVOR OF THE DOLLAR ON THE WEEKEND
RESIGNATION OF FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR THE ARCHITECT OF
RUSSIA'S ECONOMIC REFORMS

MR GAIDAR SAID HE COULDN'T CONTINUE TO SERVE IN HIS POST BECAUSE HE NO
LONGER HAD THE INFLUENCE NECESSARY TO PUSH THROUGH HIS PROGRAM

POLITICAL AND ECONOMIC INSTABILITY IN RUSSIA TENDS TO PUSH THE MARK LOWER
BECAUSE OF GERMANY'S CLOSE ECONOMIC TIES AND LARGE INVESTMENTS THERE

BUT PERHAPS MORE SIGNIFICANTLY TRADERS SAID THE MARK HAS FALLEN PREY TO A
MARKETWIDE PERCEPTION THAT THE DOLLAR'S RISE AGAINST THE MARK IS UNSTOPPABLE
 AS THE US ECONOMY CONTINUES TO STEAMROLL TOWARD RECOVERY WHILE THE
GERMAN ECONOMY HAS YET TO HIT BOTTOM

THERE IS A DIVERGENCE IN THE DIRECTION OF THE TWO ECONOMIES SAID ANDREW
BUSCH A SENIOR TRADER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO AND WHILE
THERE ARE NO IMMEDIATE CHANGES SEEN IN INTEREST RATES THERE IS A DEFINITE
DIRECTION EVENTUALLY INTEREST RATES WILL HAVE TO GO DOWN IN GERMANY WHILE
THEY GO UP IN THE US

MR BUSCH SAID HE BELIEVES THE BUNDESBANK WILL CONTINUE TO TRY TO SHORE UP
THE FALLING MARK BY HOLDING ITS KEY INTEREST RATES STEADY AT ITS
POLICYMAKING MEETING THURSDAY

BUT THE MARKET WILL DEFINITELY NOT REWARD THEM FOR THAT DECISION MR
BUSCH PREDICTED IF THEY WAIT AND THE DOLLAR CONTINUES TO GO HIGHER
THEY'RE IN TROUBLE BECAUSE THE MARKET WILL REALLY FEED ON THE FACT THAT THE
BUNDESBANK WILL HAVE TO CUT LATER HE SAID

MARK SCHWARTZ VICE PRESIDENT OF FOREIGN EXCHANGE AT LEHMAN BROS AGREES
THAT THE MARK MAY CONTINUE TO WEAKEN EVEN IF THE BUNDESBANK FAILS TO CUT ITS
KEY INTEREST RATES THURSDAY

THE INTEREST RATE CUTS HAVE BECOME A NONISSUE MR SCHWARTZ SAID THE
MARK WILL CONTINUE TO WEAKEN WHETHER THEY CUT OR NOT AT THIS POINT TRADERS
ARE JUST OUT TO TRASH THE MARK

THE DOLLAR HAS CLIMBED MORE THAN FIVE PFENNIG FROM 16990 MARKS ON DEC 28
WHEN ITS RECENT POWERFUL RALLY BEGAN

BUT MR SCHWARTZ ALSO SOUNDED A WORD OF CAUTION SAYING THE DOLLAR'S STRONG
GAINS AGAINST THE MARK COULD BE VULNERABLE TO A CORRECTION SHORTING THE
GERMAN CURRENCY HAS BECOME TOO MUCH LIKE A ONEWAY BET HE SAID

WHEN IT STARTS TO GET TOO EASY TO MAKE MONEY IN THIS BUSINESS LOOK OUT
THAT'S WHEN THE MARKET PUNISHES YOU MR SCHWARTZ SAID

HE ADDED THAT A CUT IN GERMAN INTEREST RATES HAS BEEN SO HEAVILY DISCOUNTED
BY THE MARKET THAT WHEN ANY SUCH RATE CUT ARRIVES IT MAY EVEN BE SEEN AS AN
EXCUSE TO SELL DOLLARS FOR MARKS AND TAKE PROFITS 9401180016 940118 JC
PENNEY MEXICAN PROJECT

PLANO TEXAS JC PENNEY CO SAID IT WILL SET UP AN IMPORT/EXPORT TRADING
BRANCH IN MEXICO CITY NEXT MONTH TO SERVE ITS RETAIL OPERATIONS IN MEXICO
AND THE US 9401180015 940118 URS GETS AIR FORCE CONTRACT

SAN FRANCISCO URS CONSULTANTS INC A UNIT OF URS CORP SAID IT RECEIVED
A CONTRACT TO PROVIDE ENVIRONMENTAL SERVICES FOR THE US AIR FORCE CENTER
FOR ENVIRONMENTAL EXCELLENCE

THE COMPANY SAID THE SERVICE IS FOR ONE YEAR WITH FOUR ADDITIONAL ONEYEAR
OPTIONS THE POTENTIAL TOTAL VALUE OF THE CONTRACT IS ABOUT 50 MILLION IT
SAID

URS SAID IT WILL PROVIDE PRELIMINARY ASSESSMENT AND SITE INSPECTIONS
REMEDIAL INVESTIGATIONS AND FEASIBILITY STUDIES REMEDIAL DESIGNS AND TITLE
II INSPECTION SERVICES AT AIR FORCE INSTALLATIONS 9401180014 940118
UNSTOPPABLE REFORM IN RUSSIA  BY THERESE RAPHAEL

MOSCOW FROM THE REACTION TO YEGOR GAIDAR'S RESIGNATION SUNDAY IT'S EASY
TO BELIEVE THAT RUSSIA'S REFORM PROCESS WILL NOW EVAPORATE INTO THE FRIGID
MOSCOW ETHER THE RUBLE SANK 36 MONDAY AND REFORM OBITUARIES ARE ALREADY
APPEARING IN WESTERN AND RUSSIAN PAPERS BUT NEWS REPORTS OF THE DEATH OF
REFORM IN RUSSIA ARE MUCH EXAGGERATED AND OVERLOOK THE THRIVING BUSINESS
ACTIVITY TAKING PLACE OUTSIDE THE CONFINES OF GOVERNMENT

THERE'S NO DENYING THAT MR GAIDAR'S RESIGNATION IS A SETBACK TO THE REFORM
PROGRAM BORIS YELTSIN PROMISED BILL CLINTON LAST WEEK INDEED IT WOULD
APPEAR THAT MR YELTSIN IS GIVING IN TO THE GRADUALISTS WHO LATELY HAVE
BEEN DROWNING OUT REFORMERS LIKE MR GAIDAR FINANCE MINISTER BORIS FYODOROV
AND PRIVATIZATION MINISTER ANATOLY CHUBAIS YET THE OUTWARD SIGNS OF
RETROGRESSION MAY BE MISLEADING HERE ARE A FEW THINGS TO BEAR IN MIND

MR GAIDAR IS A REFORMER BUT HE IS NOT THE REFORM A BRILLIANT ECONOMIST
WITH DUBIOUS POLITICAL SKILLS MR GAIDAR HAS ADVOCATED BOLD STROKES TO
STABILIZE AND RESTRUCTURE THE ECONOMY BUT HAS OFTEN BEEN STYMIED IN HIS
PLANS

MESSRS GAIDAR AND FYODOROV STARTED OUT ON THE RIGHT FOOT WHEN PRICES WERE
LIBERALIZED PRIVATIZATION SOARED AHEAD PUTTING SOME 82000 ENTERPRISES
INTO PRIVATE HANDS IN 199293 ALONE BUT RUSSIA'S INDUSTRIAL DINOSAURS MADE
NO ATTEMPT TO ADAPT TO THE NEW PRICE SIGNALS OR TO THE INCREASING INFLUX OF
WESTERN GOODS AND THEY SOON DEMANDED TO BE FED BY THE STATE THE CENTRAL
BANK WAS GIVEN LICENSE TO KEEP THEM AFLOAT BY PUTTING THE PRINTING PRESSES
ON OVERTIME

NOW MR YELTSIN MAY HAVE IN MR GAIDAR THE SORT OF LOYAL OPPOSITION RUSSIA'S
POLITICAL SYSTEM HAS LACKED IF MR GAIDAR CAN USE HIS FORUM IN RUSSIA'S
DUMA TO CONSOLIDATE SOME OF THE DEMOCRATIC REFORMIST FORCES WHICH HAVE
SO FAR BEEN UNABLE TO UNITE EVEN OVER ISSUES THEY AGREE ON THEN HE WILL
PERFORM A POWERFUL ROLE AS MR YELTSIN'S CRITIC AND CONSCIENCE

REAL REFORM IN RUSSIA HAS HAPPENED MORE DESPITE THE GOVERNMENT THAN BECAUSE
OF IT THE STATE OF RUSSIA'S GOVERNMENT DEVOID OF FOCUS FULL OF FACTIONS
 IS DISHEARTENING BUT REFORMING RUSSIA'S INSTITUTIONS BUILDING VIABLE
DEMOCRATIC STRUCTURES AND REAL POLITICAL PARTIES IS GOING TO TAKE LONGER
THAN A FEW YEARS THE REAL PROGRESS HAS BEEN MADE OUTSIDE THE GOVERNMENT'S
REALM

A VISIT TO A MOSCOW METRO STATION IS TELLING HERE TABLES DISPLAYING BOOKS
SUCH AS THE RUSSIANENGLISH FOREIGN TRADE DICTIONARY AND OTHER BUSINESS
TOMES REFLECT AN EXPLOSION OF PRIVATESECTOR ACTIVITY NOT SHOWN IN THE
OFFICIAL STATISTICS ABOVE GROUND RUSSIANS SPORTING FUR COATS AND CARTING
2000 TV SETS IN BOXES BEARING THE NAMES SONY AND PANASONIC ARE NOT
UNCOMMON HARDCURRENCY SHOPS NOW ACCEPTING RUBLES AND CREDIT CARDS ARE
FULL INCREASINGLY AVERAGE RUSSIANS ARE BUYING

OF COURSE MOST RUSSIANS AREN'T RICH AND THE DISPLAYS OF EVEN MODEST WEALTH
THAT ONE SEES IN MOSCOW AND ST PETERSBURG ARE LESS EVIDENT IN THE
COUNTRYSIDE STILL THERE IS CLEARLY A GROWING CLASS OF RUSSIANS ABLE TO
AFFORD ITEMS THAT WERE PREVIOUSLY BEYOND THEIR REACH

AND NOT ONLY THE ECONOMY HAS IMPROVED THE NEW POLITICAL ORDER IS BETTER
THAN THE OLD FOR ONE IT IS LEGITIMATE RUSSIA NOW HAS A CONSTITUTION AND A
DEMOCRATICALLY ELECTED PARLIAMENT THAT HOWEVER UNPREDICTABLE IS
REPRESENTATIVE

OPERATING LAST YEAR IN SOMETHING OF A LEGAL AND CONSTITUTIONAL VACUUM THE
PRESIDENT HAD GREAT DIFFICULTY PREVENTING THE OLD PARLIAMENT FROM THWARTING
EVEN THE MOST OBVIOUS REFORMS TO HIS CREDIT MR YELTSIN PUSHED THROUGH
PRIVATIZATION EVEN WHILE GIVING IN TO PRESSURE TO KEEP THE MONETARY FAUCET
OPEN FULL BLAST AND HE HAS PROMISED TO KEEP MR CHUBAIS ON AS PRIVATIZATION
MINISTER

THE MAKEUP OF THE NEW LEGISLATURE MEANS THAT EXECUTIVELEGISLATIVE CONFLICT
AND GRIDLOCK WILL CONTINUE IN THIS PARLIAMENT PERHAPS AS VICIOUSLY AS IN
THE OLD SUPREME SOVIET DISSOLVED LAST YEAR THE FORCES IN THE DUMA WILL
NEED TO FORGE COALITIONS AND BECAUSE SO MANY MEMBERS ARE NEWCOMERS THEIR
ALLIANCES ARE LIKELY TO BE VOLATILE THIS WILL GIVE MR YELTSIN WITH HIS
STRONG CONSTITUTIONAL POWERS AN ADVANTAGE OVER PARLIAMENT IN PRESSING HIS
PROGRAMS AN ADVANTAGE NOT AVAILABLE TO HIM LAST YEAR MEANWHILE THE
EXISTENCE OF A LOYAL OPPOSITION IN THE DUMA MADE UP OF MR GAIDAR GRIGORY
YAVLINSKY SERGEI SHAKHRAI AND OTHER REFORMERS WILL SERVE AS A POWERFUL
CAMP OF PROREFORM CRITICS PROVIDED THEY CAN FIND SOME WAY TO UNITE

THOUGH MANY IN THE WEST HAVE COMPLAINED THAT THE NEW CONSTITUTION GRANTS THE
PRESIDENT TOO MUCH POWER THIS GAULLIST MODEL IS JUST WHAT RUSSIA NEEDS
RIGHT NOW BORIS YELTSIN'S STRENGTH LIES NOT SO MUCH IN HIS ABILITY TO
CREATE A NEW ECONOMIC ORDER THAT WILL LARGELY BE LEFT TO HIS SUCCESSORS
BUT IN HIS POWER TO DESTROY THE NOXIOUS REMNANTS OF THE OLD SYSTEM PRISTINE
WESTERN DEMOCRATS MAY FIND HIM HEAVYHANDED BUT A LEADER WITH A SOFTER
TOUCH WOULDN'T LAST A NANOSECOND IN THE KREMLIN HIS JOB NOW IS TO PAVE THE
WAY FOR THE ALREADY EMERGING POSTYELTSIN ERA AND THE NEW CLASS OF
POLITICIANS

ALEXANDER VLADIMIROV A RETIRED MAJOR GENERAL WHO HAS ADVOCATED REFORM IN
THE MILITARY FOR MORE THAN A DECADE SAYS RUSSIA IS A POOR AND CRAZY
COUNTRY BUT PUT IN CONTEXT THERE HAS BEEN PROGRESS ATTACHED TO HIS LAPEL
GEN VLADIMIROV WEARS A SMALL PIN GIVEN TO HIM BY FORMER US DEFENSE
SECRETARY DONALD RUMSFELD BEARING THE WORDS THERE'S HOPE WE HAVE ONLY
ONE REAL ENEMY NOW AND THAT IS OUR PSYCHOLOGY HE SAYS ONLY YELTSIN HAS
THE POWER TO GET RID OF THE OLD PLAYERS AND MAKE REFORM A REALITY

THE GENERAL IS RIGHT THOUGH FEW ARE LISTENING MR GAIDAR'S DEPARTURE WILL
NOT BY ANY MEANS BE THE END OF REFORM MR YELTSIN FOR ALL HIS MISTAKES
HAS UNLEASHED A PROCESS THAT WILL CONTINUE LONG AFTER HE AND MR GAIDAR
HAVE LEFT THE KREMLIN

MS RAPHAEL IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL EUROPE
9401180013 940118 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS
JAN 1831

THIS IS THE FIRST EXHIBIT IN MORE THAN A CENTURY TO FOCUS ON THE FRENCH
PAINTER'S LANDSCAPES AMONG THE MORE THAN 75 PASTELS PRINTS AND DRAWINGS
ARE TWO OF HIS EARLIEST LANDSCAPES ITALIAN LANDSCAPE SEEN THROUGH AN ARCH
1856 AND VIEW OF MT VESUVIUS CIRCA 1856 IN THE FALL OF 1869 DURING
A VISIT TO THE NORMANDY COAST DEGAS COMPLETED MORE THAN 40 PASTELS
INCLUDED FROM THIS PERIOD ARE HIS BESIDE THE SEA BEACH AT LOW TIDE AND
SEASCAPE AT SUNSET

 METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT 82ND STREET JAN 21APRIL 3
212 8795500

TO COMMEMORATE THE 100TH ANNIVERSARY OF THE MIDWINTER INTERNATIONAL
EXHIBITION HELD IN GOLDEN GATE PARK THIS EXHIBIT WILL FEATURE PHOTOGRAPHS
MEDALS AND BANNERS FROM THAT FESTIVAL WHICH LED TO THE FOUNDING OF THE MH
DE YOUNG MEMORIAL MUSEUM ALSO ON VIEW WILL BE WORKS FROM THE MUSEUM'S FINE
ARTS BUILDING WHICH WAS BUILT FOR THE 1894 EXPOSITION THAT ARE PART OF THE
MUSEUM'S CHARTER COLLECTION OBJECTS FROM THE MUSEUM'S AFRICA OCEANIA AND
AMERICAS COLLECTIONS AND ITS TROUBETZKOY BRONZES WILL BE ON DISPLAY AS WELL

THIS SHOWING IN CONJUNCTION WITH THE PINACOTECA NAZIONALE IN BOLOGNA
ITALY AND THE FIRST DEVOTED SOLELY TO THIS CARRACCI HIS COUSINS THE
BROTHERS ANNIBALE AND AGOSTINO WERE ALSO BOLOGNABORN PIONEERS OF BAROQUE
MONUMENTAL PAINTING IN ROME FEATURES 45 PAINTINGS FROM ALL PHASES OF THE
BOLOGNESE MASTER'S CAREER BROUGHT TOGETHER FROM MUSEUMS AND PRIVATE
COLLECTIONS IN EUROPE AND THE US

THE PRIVATE COLLECTION OF PENTHOUSE MAGAZINE FOUNDER BOB GUCCIONE AND HIS
WIFE KATHY KEETON JUST OPENED AT LONG ISLAND'S NASSAU COUNTY MUSEUM OF
ART THE 75 WORKS INCLUDE DESCENT FROM THE CROSS A 15THCENTURY TRIPTYCH
FROM THE ROGER VAN DER WEYDEN SCHOOL THAT WAS ORIGINALLY INTENDED AS AN
ALTARPIECE AND BOTTICELLI'S BIRTH OF VENUS ALSO WORKS BY EL GRECO
CHAGALL DALI DURER AND PICASSO

A RARE STAGING OF KURT WEILL'S STREET SCENE OPENS HERE JAN 28 COMPOSED
DURING HIS POSTBERLIN YEARS IN AMERICA AFTER HAVING FLED FROM THE NAZIS
THIS PRODUCTION FEATURES SHERI GREENAWALD AS ANNA ROBERT MCFARLAND AS
FRANK LEE MERRILL AS ROSE AND KIP WILBORN AS SAM KAPLAN FRANCESCA ZAMBELLO
DIRECTS AND WARD HOLMQUIST CONDUCTS WITH SETS DESIGNED BY ADRIANNE LOBEL
CONTINUING JAN 30 FEB 2 5 8 11 AND 13 ALSO ON THE WINTER SCHEDULE IS
DONIZETTI'S LUCIA DI LAMMERMOOR STARRING TIZIANA FABBRICINI JAN 20 23
26 AND 29 FEB 1 AND 4

 WORTHAM THEATER CENTER'S BROWN THEATER TEXAS STREET AT SMITH LOCALLY
713 227ARTS ELSEWHERE 1800828ARTS

THE ORCHESTRA CELEBRATES THE 100TH ANNIVERSARY OF THE PREMIERE OF DVORAK'S
SYMPHONY NO 9 FROM THE NEW WORLD WITH PERFORMANCES JAN 28 AND 29 PART
OF THE BROOKLYN ACADEMY OF MUSIC'S SOUNDWAVE FESTIVAL THE CONCERTS WILL
FEATURE IN ADDITION TO THE DVORAK PIECE EDWARD MACDOWELL'S DIRGE FROM
HIS INDIAN SUITE AND AMY BEACH'S GAELIC SYMPHONY BOTH INFLUENCED BY DVORAK
9401180012 940118 COMMODITIES PETROLEUM PRICES INCREASE ON FREEZING
WEATHER IN NORTHERN HALF OF US REACTION TO EARTHQUAKE  BY CALEB
SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL

HOUSTON FREEZING WEATHER IN MUCH OF THE NORTHERN HALF OF THE US AND
REACTION TO THE LOS ANGELESAREA EARTHQUAKE HELPED PUSH OIL PRICES UP

INITIAL ASSESSMENTS BY OIL COMPANIES WERE THAT THEIR SOUTHERN CALIFORNIA
REFINERIES AND PIPELINES WERE LARGELY UNDAMAGED BY THE EARTHQUAKE BUT
SEVERAL PLANTS AND NUMEROUS PIPELINES SHUT DOWN EITHER BECAUSE THEY LOST
POWER OR AS PART OF PRECAUTIONARY MEASURES THAT KICKED IN UNDER EMERGENCY
PLANS

MARKET PARTICIPANTS SAID THE POSSIBILITY THAT SEVERAL MAIN PIPELINES WILL
REMAIN CLOSED FOR MORE THAN A FEW DAYS ADDED SOMEWHAT TO THEIR BULLISHNESS
YESTERDAY BUT MOST WERE WAITING FOR MORE COMPLETE DAMAGE REPORTS BEFORE
INITIATING MUCH QUAKERELATED TRADING

THE UNUSUALLY COLD WEATHER SPURRED MOST OF THE ACTIVITY IN PARTICULAR
DEMAND FOR HEATING OIL SURGED WHICH ALSO LIFTED CRUDE OIL PRICES THE ICY
TEMPERATURES ALSO SHARPLY BOOSTED NATURAL GAS PRICES THE WEATHER HAS BEEN
SO EXTREME THAT TECHNICALLY ORIENTED TRADERS HAVE HAD TO GIVE UP ON THEIR
CHARTS IN RECENT DAYS

LIGHT SWEET CRUDE OIL ON THE NEW YORK MERCANTILE EXCHANGE CLIMBED BACK
ABOVE 15 A BARREL THE FEBRUARY CONTRACT SURGED 32 CENTS A BARREL TO
1510 IT TRADED AS HIGH AS 1529 A BARREL A NUMBER OF US OIL COMPANIES
RAISED THE PRICE THEY PAY FOR CRUDE AT REFINERIES BY 50 CENTS A BARREL

HEATINGOIL FUTURES HAVE GAINED NEARLY SIX CENTS A GALLON IN THE PAST WEEK
HEATING OIL FOR FEBRUARY DELIVERY SETTLED YESTERDAY AT 5267 CENTS A GALLON
UP 141 CENTS

ALSO PROVIDING SUPPORT TO PETROLEUM PRICES WAS AN AGREEMENT AMONG THE
CREDITOR BANKS OF THE TROUBLED GERMAN COMPANY METALLGESELLSCHAFT AG OVER A
BAILOUT PACKAGE FEARS EASED THAT THE COMPANY'S US UNIT MG CORP A MAJOR
PLAYER ON THE NEW YORK MERC WOULD BE FORCED TO LIQUIDATE LARGE POSITIONS

THE NATURAL GAS FUTURES CONTRACT FOR FEBRUARY DELIVERY SURGED 92 CENTS TO
SETTLE AT 236 PER MILLION BRITISH THERMAL UNITS

IN OTHER COMMODITY MARKETS YESTERDAY

ORANGE JUICE FUTURES PRICES FELL AS TEMPERATURES FAILED TO REACH LEVELS
THAT COULD DAMAGE FLORIDA'S ORANGE CROP AT NEW YORK'S COTTON EXCHANGE
ORANGE JUICE FOR MARCH DELIVERY WAS DOWN 555 CENTS TO 10815 A POUND
AFTER THIS WEEK THE FROST SEASON IS BASICALLY PAST SAID JUDITH GANES
ANALYST FOR MERRILL LYNCH THE MAJORITY OF FREEZES HAVE OCCURRED BETWEEN
CHRISTMAS WEEK AND THE THIRD WEEK OF JANUARY FROM HERE ON OUT ANY LOSSES
TO THE CROP WOULDN'T BE THAT GREAT THIS IS THE BEGINNING OF THE BIG
SELLOFF THE ANNUAL EVENT IN NONFREEZE YEARS SANDRA KAUL ANALYST FOR
SMITH BARNEY SHEARSON SAID THE MARKET ALSO IS BEING PRESSURED LOWER BY
CONCERNS THAT BRAZIL'S ORANGEJUICE CROP MAY NOT HAVE BEEN DAMAGED AS BADLY
BY DRY WEATHER AND DISEASE AS HAD PREVIOUSLY BEEN THOUGHT

PRECIOUS METALS BUYING BY DEALERS AND COMMODITY FUNDS IN A THIN HOLIDAY
MARKET PRESSURED GOLD FUTURES PRICES HIGHER AT NEW YORK'S COMMODITY
EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP 210 TO 39220 AN OUNCE
ANALYSTS SAID HEALTHY DEMAND FOR GOLD FUTURES CONTRACTS CONTINUES DESPITE
THE FACT THAT GOLD IS NOW TRADING AT THE UPPER END OF ITS RECENT
365TO390 TRADING RANGE MANY ANALYSTS HAVE PREDICTED THAT GOLD SOON WILL
TEST THE 400ANOUNCE LEVEL BUT EACH TIME PRICES HAVE NEARED THAT LEVEL
RECENTLY GOLD PRODUCERS HAVE BID PRICES DOWN BY AGGRESSIVELY SELLING GOLD
FUTURES CONTRACTS 9401180011 940118 WHO'S NEWS KEMPER CORP

KEMPER CORP CHICAGO STANLEY R FALLIS 53 YEARS OLD WAS NAMED SENIOR
VICE PRESIDENT OF PLANNING FOR THIS FINANCIALSERVICES HOLDING COMPANY HE
SUCCEEDS STEPHEN MCCONAHEY WHO RECENTLY WAS NAMED PRESIDENT OF THE KEMPER
SECURITIES UNIT MR FALLIS PREVIOUSLY WAS SENIOR EXECUTIVE VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER AT KEMPER SECURITIES JOSEPH R SITAR 48 WAS
NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF ACCOUNTING
OFFICER OF KEMPER CORP HE FORMERLY WAS A VICE PRESIDENT AND COMPTROLLER AT
THE AMERICAN LIFE INSURANCE UNIT OF AMERICAN INTERNATIONAL GROUP
9401180010 940118 ENTERPRISE GOVERNMENT WATCH SOME SMALL FIRMS FACE
MEDICARE TAX IN HEALTH PLAN  BY JEANNE SADDLER STAFF REPORTER OF
THE WALL STREET JOURNAL

A SLEEPER IN CLINTON'S HEALTH PLAN MAY BE A NIGHTMARE FOR SOME FIRMS

A LITTLENOTED PROVISION WOULD CREATE A BIG TAX INCREASE FOR MANY BUSINESSES
ORGANIZED AS SUBCHAPTER S CORPORATIONS IN A SUBCHAPTER S CORPORATION
EARNINGS ARE TAXED AS PART OF INDIVIDUAL SHAREHOLDERS' PERSONAL INCOME SUCH
SMALL AND MIDSIZE BUSINESSES ALREADY FACE HIGHER TAX RATES AS A RESULT OF
THE 1993 BUDGET LAW S CORPORATION OWNERS NOW HAVE A TOP TAX RATE OF 396
COMPARED WITH THE 35 RATE PAID BY LARGER CORPORATIONS

UNDER PRESIDENT CLINTON'S HEALTHCARE REFORM BILL S CORPORATIONS IN SERVICE
INDUSTRIES WOULD ALSO PAY THE 29 EMPLOYMENT TAX FOR MEDICARE ON ALL OF
THEIR REPORTED EARNINGS CURRENTLY THESE FIRMS MUST PAY THE TAX ONLY ON
REVENUE PAID AS SALARIES THE ADMINISTRATION IS TARGETING SERVICEORIENTED
BUSINESSES FROM CONSULTING COMPANIES TO THEATER TROUPES BECAUSE THEIR
EARNINGS RESULT MAINLY FROM HUMAN LABOR RATHER THAN A MIX OF LABOR AND
EQUIPMENT

S CORPORATIONS ARE BEING PENALIZED CONTENDS ROBERT BLAIR CHAIRMAN OF THE
S CORPORATION REFORM PROJECT A WASHINGTON DC GROUP THAT WANTS CONGRESS
TO SIMPLIFY TAX RULES AFFECTING S CORPORATIONS IT'S EVEN MORE DAMAGING
THAN THE 1993 TAX BILL HE ADDS

AN ADDITIONAL TAX WOULD REPRESENT A MARKED CHANGE FOR MANY SMALL BUSINESSES
SAYS SAM STARR WHO HEADS THE S CORPORATION TAXATION COMMITTEE FOR THE
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IT GETS DOWN TO THE
MOST BASIC QUESTION YOU ASK ABOUT A TAX DO I HAVE THE WHEREWITHAL TO
PAY' BUSINESS OWNERS WILL ANSWER NO IF THEY REINVEST EARNINGS IN THEIR S
CORPORATIONS HE CONTINUES

A SOCALLED ANTIABUSE PROVISION OF THE CLINTON HEALTHCARE PLAN PROBABLY
WOULD BE ENFORCED VIGOROUSLY TAX EXPERTS SAY THE PROVISION AIMS TO PREVENT
S CORPORATION OWNERS FROM AVOIDING EMPLOYMENT TAXES BY PAYING THEMSELVES
ARTIFICIALLY LOW SALARIES

RESTAURATEURS SERVE UP A LOBBYING BLITZ ON HEALTHCARE REFORM

LAST MONTH THE NATIONAL RESTAURANT ASSOCIATION BEGAN SEMINARS AROUND THE
COUNTRY TO TELL RESTAURANT OWNERS WHY THEY SHOULD OPPOSE PRESIDENT CLINTON'S
HEALTHCARE PLAN THE TRADE GROUP DISLIKES THE CLINTON PROPOSAL REQUIRING
ALL EMPLOYERS TO HELP PAY FOR EMPLOYEES' HEALTH INSURANCE AT THE SEMINARS
RESTAURANT OWNERS COMPLETE WORK SHEETS TO COMPUTE HOW THE CLINTON PLAN WOULD
AFFECT THEIR BOTTOM LINES OWNERS ARE THEN URGED TO CITE THE DATA IN THEIR
CALLS AND LETTERS TO MEMBERS OF CONGRESS THE ASSOCIATION WANTS OWNERS TO
SUPPORT A BILL SPONSORED BY DEMOCRATIC REP JAMES COOPER OF TENNESSEE THAT
WOULD SIMPLY REQUIRE EMPLOYERS TO OFFER WORKERS HEALTH INSURANCE

HERMAN CAIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GODFATHER'S PIZZA INC
IN OMAHA NEB IS THE LEAD SPEAKER AT THE SEMINARS WHICH WILL BE HELD
THROUGH NEXT MONTH WHAT PROMPTED ME TO GET EMOTIONAL ABOUT THIS IS WHEN I
DID THE CALCULATION FOR MY OWN COMPANY SAYS MR CAIN ALSO A VICE
PRESIDENT OF THE ASSOCIATION IT SHOWED A 250 INCREASE IN MY
HEALTHINSURANCE COSTS THAT WOULD GET ANYONE'S ATTENTION

MR CAIN SAYS MOST OF THE INCREASE WOULD OCCUR BECAUSE THE CLINTON PLAN
EXTENDS COVERAGE TO PARTTIME WORKERS THAT HE DOESN'T NOW COVER THE CHAIN
WHICH EMPLOYS ABOUT 4000 PEOPLE OWNS 142 RESTAURANTS AND FRANCHISES MANY
OTHERS

DESPITE HEAVY LOBBYING BY THE RESTAURANT ASSOCIATION AND OTHER
SMALLBUSINESS ADVOCATES HOWEVER NUMEROUS OWNERS NOW BACK THE CLINTON
PLAN WHICH WOULD SUBSIDIZE HEALTHINSURANCE COSTS FOR THE SMALLEST
LOWESTWAGE EMPLOYERS RICHARD GROSS PRESIDENT OF GROSS ELECTRIC INC A
TOLEDO OHIO WHOLESALE SUPPLY BUSINESS ESTIMATES THAT THE PRESIDENT'S PLAN
WOULD SAVE HIS SMALL COMPANY 131000 ANNUALLY IN HEALTHINSURANCE COSTS
THE COMPANY CURRENTLY SPENDS ABOUT 268000 A YEAR ON HEALTH INSURANCE FOR
ITS 64 EMPLOYEES

BIG LOBBYING GROUPS TRY TO PUT ALL SMALL BUSINESSES IN THE SAME POT MR
GROSS COMPLAINS

SMALLBUSINESS INCENTIVES IN THE 1993 BUDGET ACT ARE ATTRACTING LITTLE
INTEREST DESPITE HIGH HOPES INITIALLY A PROVISION INCREASING THE VALUE OF
EQUIPMENT THAT CAN BE WRITTEN OFF IN THE FIRST YEAR TO 17500 FROM 10000
ISN'T ENOUGH TO CAUSE MOST COMPANIES TO CHANGE THEIR PURCHASING PLANS SAYS
JOHN EVANS DEPUTY DIRECTOR OF ARTHUR ANDERSEN ENTERPRISE GROUP A CHICAGO
UNIT OF ARTHUR ANDERSEN & CO AND THE CAPITALGAINS TAX CUT FOR ASSETS HELD
FOR FIVE YEARS MAY NOT SURVIVE FUTURE CHANGES IN THE TAX LAW VENTURE
CAPITALISTS SAY FROM A SOPHISTICATED INVESTORS' POINT OF VIEW THESE MIGHT
BE THINGS THAT PUSH A DEAL FORWARD BUT THEY DON'T GENERATE ACTIVITY ON
THEIR OWN MR EVANS CONCLUDES

INVESTMENT BOOST SMALL BUSINESS ADMINISTRATION CHIEF ERSKINE BOWLES PLANS
TO REVAMP THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM BY LICENSING AS MANY
AS 200 NEW INVESTMENT COMPANIES WITH PRIVATE CAPITAL RANGING FROM 10
MILLION TO 15 MILLION APIECE THE 280 CURRENT SBICS HAVE AN AVERAGE OF
115 MILLION IN CAPITAL AN SBIC IS A GOVERNMENTLICENSED COMPANY THAT
INVESTS A MIX OF ITS FUNDS AND UNCLE SAM'S MONEY IN HIGHRISK FIRMS WITH
HIGHGROWTH POTENTIAL SBA OFFICIALS BELIEVE BIGGER AND BETTERCAPITALIZED
SBICS WOULD BETTER SURVIVE ECONOMIC SWINGS UNDER THE REFORM PLAN THE
GOVERNMENT WOULD HOLD PREFERRED STOCK IN SBICS RATHER THAN LEND THEM MONEY

ENVIRONMENTAL OMBUDSMEN SMALLBUSINESS GROUPS PUSH TO EXPAND THE
ENVIRONMENTAL PROTECTION AGENCY'S NEW OMBUDSMEN PROGRAM THE EPA IS PLACING
OMBUDSMEN IN EVERY STATE CAPITAL TO HELP SMALL COMPANIES COMPLY WITH THE
CLEAN AIR ACT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS AND THE
PRINTING INDUSTRIES OF AMERICA WANT CONGRESS TO BROADEN THE OMBUDSMEN'S ROLE
SO THEY COVER ALL FEDERAL ENVIRONMENTAL LEGISLATION DEMOCRATIC REPS
BLANCHE LAMBERT OF ARKANSAS AND RON WYDEN OF OREGON CONSIDER SPONSORING THE
MEASURE

SMALL TALK THE SBA DROPS ITS MUCH BALLYHOOED PLANS FOR A TOLLFREE NUMBER
ENABLING BUSINESS OWNERS TO CALL AND CALCULATE THE EFFECT OF THE CLINTON
HEALTHCARE PLAN ON THEIR COMPANIES OFFICIALS DECIDED THE PHONE LINE WOULD
COST TOO MUCH  SO FAR FIVE BILLS HAVE BEEN INTRODUCED IN CONGRESS TO
RESTORE THE TAX DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT TO 80 IT
WAS REDUCED TO 50 IN LAST YEAR'S BUDGET ACT 9401180009 940118 LETTERS TO
THE EDITOR RUSSIAN REFORMATION AND CURRENCY BOARDS

PROF JEFFREY SACHS BEGINS HIS DEC 30 EDITORIALPAGE PIECE IN DEFENSE OF
RUSSIA'S REFORMERS WITH A CURIOUS INACCURATE AND GRATUITOUS REMARK IT IS
DIRECTED TOWARD THOSE WHO ADVOCATE CURRENCY BOARDS AS A MEANS TO STABILIZE
AND MAKE CONVERTIBLE THE RUBLE HE ASSERTS THAT RIGHTOFCENTER PUNDITS HAVE
ATTACKED REFORMERS FOR REJECTING CURRENCY BOARDS

CURRENCY BOARDS ARE HARDLY THE EXCLUSIVE DOMAIN OF THE RIGHT INDEED
CURRENCY BOARDS ENJOY THE SUPPORT OF THOSE FROM ALL PARTS OF THE IDEOLOGICAL
SPECTRUM INCLUDING IDEOLOGICALLY NEUTRAL INSTITUTIONS SUCH AS THE
INTERNATIONAL MONETARY FUND IF THAT WEREN'T ENOUGH THE ONLY CURRENCY BOARD
TO EVER OPERATE IN RUSSIA 19181920 WAS FATHERED BY NONE OTHER THAN JOHN
MAYNARD KEYNES HARDLY A RIGHTWINGER

AS FOR THE REFORMERS' REJECTION OF CURRENCY BOARDS WHAT MAKES PROF SACHS'S
REMARK EVEN MORE CURIOUS IS THE FACT THAT IN SOME OF HIS OTHER WRITINGS HE
HAS WAXED LYRICAL ABOUT EMPLOYING CURRENCY BOARDS IN THE FORMER SOVIET UNION
FSU FOR EXAMPLE AN ARTICLE HE COAUTHORED WITH ARDO HANSSON CROWNING
THE ESTONIAN KROON TRANSITION OCTOBER 1992 CONCLUDED THAT

THE ESTONIAN MONETARY REFORM CLEARLY POINTS THE WAY FOR THE NEW STATES OF
THE FSU MOST OR ALL WILL HAVE THEIR OWN NATIONAL CURRENCIES ESTONIA'S
EXPERIENCE DEMONSTRATES THAT IT IS POSSIBLE TO MOVE TO A STABLE AND
CONVERTIBLE CURRENCY RIGHT FROM THE START IF THE POLICIES ARE SUPPORTED BY
A SOUND INSTITUTIONAL BULWARK SUCH AS A CURRENCY BOARD ARRANGEMENT AND BY
SOUND FISCAL POLICY

PROF SACHS'S DEFENSE OF RUSSIA'S OMNISCIENT REFORMERS WOULD BE A GOOD DEAL
MORE CREDIBLE IF HE WOULD GET THE FACTS STRAIGHT AND STOP CHANGING HIS OWN
TUNE 9401180008 940118 ELSIE'S BOSSES A DEFECTIVE STRATEGY OF HEATED
ACQUISITIONS SPOILS BORDEN NAME  TWO OLD FRIENDS LED RISE FALL
 NOW THEY'RE OUT RESULTS KEEP SLIPPING  TURNING CHIPS INTO
CRUMBS  BY KATHLEEN DEVENY AND SUEIN L HWANG STAFF REPORTERS OF
THE WALL STREET JOURNAL

ROMEO J VENTRES AND ANTHONY S D'AMATO HAD BEEN GOOD FRIENDS AND
PROFESSIONAL ALLIES FOR MORE THAN THREE DECADES AS THEY HELPED EACH OTHER
CLIMB THE EXECUTIVE RANKS AT BORDEN INC

OF DISPARATE PERSONALITIES AND MANAGEMENT STYLES THE TWO ENGINEERS JOINED
BORDEN IN THE LATE 1950S AND WORKED TOGETHER IN THE COMPANY'S CHEMICAL
DIVISION WHEN MR VENTRES WAS OUT OF WORK IN 1979 MR D'AMATO WAS
INSTRUMENTAL IN BRINGING HIM BACK WHEN MR VENTRES PREPARED TO RETIRE AS
BORDEN'S CHIEF EXECUTIVE IN 1991 HE CONVINCED THE BOARD THAT HIS PROTEGE
WAS THE IDEAL SUCCESSOR

NOW BOTH MEN ARE GONE AND THE COMPANY HAS NEVER BEEN IN WORSE SHAPE

MR VENTRES 69 YEARS OLD QUIETLY RESIGNED EARLIER THIS MONTH FROM THE
COMPANY'S BOARD AMID MOUNTING CRITICISM OF HIS TENURE FOUR WEEKS EARLIER
MR D'AMATO 63 HAD BEEN OUSTED AS CHIEF EXECUTIVE AFTER CLASHING WITH SOME
DIRECTORS WHO WANTED TO SELL THE ENTIRE COMPANY IN LESS THAN TWO MONTHS
THE TWO MEN WHO SHAPED THE COMPANY OVER THE PAST DECADE AND WERE AT THE
HELM DURING ITS DECLINE HAVE LEFT

ONCE PROMINENT BORDEN IS SEEMINGLY INVISIBLE THESE DAYS WITH LITTLE
ADVERTISING AND MARKETING AND A HODGEPODGE OF SMALL PRODUCTS SALES AND
PROFITS IN EVERY MAJOR DIVISION ARE DECLINING IT HAS SHED THOUSANDS OF
WORKERS SLASHED ITS DIVIDEND BY 75 AND SINCE 1989 TAKEN 15 BILLION IN
RESTRUCTURING CHARGES A HUGE SUM FOR A COMPANY WITH 714 BILLION IN 1992
SALES IN THE THIRDQUARTER THE COMPANY POSTED ITS NINTH CONSECUTIVE
QUARTERLY DECLINE IN OPERATING EARNINGS BORDEN'S STOCK WHICH PEAKED IN
1991 AT 3875 CLOSED YESTERDAY AT 15

BORDEN WON'T COMMENT ON ITS PAST STRATEGY OR ON THE DEPARTED EXECUTIVES A
NEW MANAGEMENT TEAM IS IN PLACE LED BY ERVIN R SHAMES 53 WHO IS A FORMER
EXECUTIVE OF PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT AND BORDEN'S FIRST
CEO WITH A BROAD FOODMARKETING BACKGROUND BUT WITH MORE THAN 2 BILLION IN
DEBT 900 MILLION COMING DUE WITHIN A YEAR BORDEN FINDS ITS OPTIONS
LIMITED AS IT SEEKS TO UNWIND ITS PAST STRATEGY

ALTHOUGH MR D'AMATO HAS COME UNDER PUBLIC FIRE RECENTLY MR VENTRES WAS
LARGELY RESPONSIBLE FOR THAT STRATEGY HE DREAMED OF TRANSFORMING BORDEN
FROM A SLEEPY CONGLOMERATE INTO A MAJOR FOOD MARKETER HE PURSUED HIS VISION
RELENTLESSLY SPENDING NEARLY 2 BILLION ON 91 ACQUISITIONS BETWEEN 1986 AND
1991 TO ACCUMULATE SUCH BRANDS AS LAURA SCUDDER'S POTATO CHIPS STEERO
BOUILLON AND KRAZY GLUE BY THE TIME MR D'AMATO TOOK OVER IN 1991 THE
COMPANY WAS HAVING PROBLEMS DIGESTING THEM ALL

ALTHOUGH MR VENTRES AND MR D'AMATO HAD DEVELOPED A COLLEGIAL FRIENDSHIP
OVER THE YEARS THEIR STYLES DIFFERED SHARPLY A SHY MAN WITH A
GRANDFATHERLY DEMEANOR MR VENTRES HAD AN ABIDING FAITH IN BORDEN'S TOP
MANAGERS AND GAVE THEM FREE REIN FORMER COLLEAGUES SAY MR D'AMATO WHO IS
BLUNT AND PEPPERS HIS CONVERSATION WITH PROFANITY PRIDED HIMSELF ON HIS
DEEP INVOLVEMENT IN BORDEN'S OPERATIONS AN APPROACH THAT ALIENATED SOME TOP
MANAGERS AND RANKLED HIS FORMER MENTOR

VENTRES WAS A DREAMER SAYS JOHN CASEY VICE CHAIRMAN OF WENDY'S
INTERNATIONAL INC WHO WORKED FOR 11 YEARS IN BORDEN'S CHEMICAL BUSINESS
HE HAS AN ABILITY TO DREAM UP THINGS BUT HE RELIED ON OTHER PEOPLE TO PUT
THEM INTO EFFECT

NEITHER MR VENTRES NOR MR D'AMATO WILL COMMENT ON THEIR YEARS AT BORDEN
THEIR RELATIONSHIP OR THEIR FUTURE PLANS

UNDER MR D'AMATO'S CONTRACT WHICH WAS AMENDED BY THE BOARD JUST SIX MONTHS
BEFORE HE WAS ASKED TO RESIGN THE FORMER CEO WILL RECEIVE 900000 ANNUALLY
THROUGH 1997 AS FOR MR VENTRES BORDEN PAID HIM ANNUAL CONSULTING FEES OF
250000 AFTER HIS RETIREMENT IN ADDITION TO HIS 28000 ANNUAL
COMPENSATION AS A DIRECTOR

ALTHOUGH BORDEN WAS NEVER A HIGHFLYING COMPANY IT WAS FAR MORE PROFITABLE
BEFORE MR VENTRES'S TENURE FOUNDED IN 1857 BY GAIL BORDEN JR A FORMER
TEXAS NEWSPAPERMAN THE COMPANY SOLD CONDENSED MILK DURING THE CIVIL WAR IT
LATER DIVERSIFIED INTO CHEMICALS AND ACQUIRED FOOD BRANDS SUCH AS CRACKER
JACK AND REALEMON IN THE 1960S TO EASE THE EARNINGS SWINGS CAUSED BY
SHIFTING CHEMICAL PRICES EUGENE J SULLIVAN A FORMER CHEMICAL SALESMAN AND
MR VENTRES'S PREDECESSOR BEGAN MOVING BORDEN FURTHER INTO CONSUMER
PRODUCTS

IT WASN'T A GREAT COMPANY BUT IT WAS A VERY PROFITABLE COMPANY SAYS NOMI
GHEZ A GOLDMAN SACHS & CO ANALYST THEY HAD NO PRETENSIONS AT THE TIME

SOON AFTER HE BECAME CEO IN NOVEMBER 1986 MR VENTRES SPED UP THE
ACQUISITION PROGRAM FORMER BORDEN EXECUTIVES SAY HE PRESSED SENIOR MANAGERS
TO MOVE QUICKLY THEY SAY THE COMPANY SOMETIMES SPENT AS LITTLE AS TWO WEEKS
CONDUCTING DUE DILIGENCE BEFORE AGREEING TO ACQUISITIONS

WE WERE HURRIEDLY BUYING COMPANIES FOR THE SAKE OF BUYING COMPANIES SAYS
HAN KIM A 20YEAR BORDEN VETERAN WHO RESIGNED LAST MONTH MR KIM SAYS HE
RECOMMENDED AGAINST THE COMPANY'S 1986 PURCHASE OF FISHER CHEESE CO MAKER
OF ARTIFICIALCHEESE PRODUCTS BUT IN BORDEN'S RUSH TO BOOST ITS GROCERY
BUSINESS TOP EXECUTIVES IGNORED HIS ADVICE SAYS MR KIM TODAY
SUPERMARKET SALES OF MANY FISHER BRANDS ARE DECLINING RAPIDLY

BY DESIGN MOST OF THE ACQUISITIONS WERE SMALL TO MEDIUMSIZE BRANDS SUCH
AS QUINLAN PRETZELS AND AMERICAN ORIGINAL CLAM PRODUCTS THE STRATEGY
GROWTH WOULD COME BY SIMPLY MARKETING THE REGIONAL BRANDS BEYOND THEIR HOME
TURF CONSOLIDATING MANUFACTURING AND DISTRIBUTION WOULD MAKE BORDEN THE
LOWCOST PRODUCER OF ITS FARFLUNG PRODUCT LINES AND GIVE IT MORE CLOUT IN
THE MARKETPLACE LARGE ACQUISITIONS DIDN'T PAY MR VENTRES SAID AT THE
TIME BECAUSE THEY OFTEN INCLUDED BUSINESSES BORDEN DIDN'T WANT AND
CONSOLIDATING THEM COULD HURT MORALE

FOR THE MOST PART WALL STREET AND THE FINANCIAL PRESS BOUGHT INTO MR
VENTRES'S DREAM LARGELY BECAUSE OF THE MANY ACQUISITIONS THE COMPANY'S
SALES GREW 54 BETWEEN 1985 AND 1988 EARNINGS INCREASED 61 THE MOST RAPID
GROWTH IN THE COMPANY'S HISTORY WHAT'S MORE REGIONAL MARKETING 
TAILORING PRODUCTS TO LOCAL TASTES WAS A HOT STRATEGY AMONG MAJOR FOOD
COMPANIES IN SPEECHES MR VENTRES LIKED TO QUOTE A 1987 ARTICLE IN FORTUNE
MAGAZINE THAT REFERRED TO BORDEN AS A CONSUMER PRODUCTS BRUTE

BUT WHILE MR VENTRES RACED TO EXPAND BORDEN'S FOOD PORTFOLIO CRITICS SAY
THE COMPANY IGNORED SOME OF THE WELLKNOWN NAMES IT ALREADY OWNED THE
COMPANY SOLD FANCY ICE CREAM UNDER ITS LADY BORDEN BRAND FOR DECADES BUT
MISSED OUT ON THE 1980S BOOM IN SUPERPREMIUM ICECREAM AND WHILE
FOODINDUSTRY RIVALS SPUN OUT A HOST OF LINE EXTENSIONS BORDEN NEVER
SUCCESSFULLY DEVELOPED NEW PRODUCTS UNDER MANY OF ITS STRONGEST BRAND NAMES

MR VENTRES WAS ALSO CONSIDERED TOO HANDSOFF BY SOME CRITICS WHO THOUGHT
HE SHOULD HAVE BROUGHT IN MORE AGGRESSIVE MANAGERS FORMER EXECUTIVES SAY HE
LEFT THE EXECUTION OF HIS AMBITIOUS STRATEGY LARGELY TO BORDEN'S TOP
MANAGERS MANY OF WHOM HAD BEEN AT THE COMPANY FOR MORE THAN 20 YEARS HE
RARELY GOT INVOLVED IN DAYTODAY OPERATIONS SPENDING MOST OF HIS TIME IN
BORDEN'S SMALL PARK AVENUE OFFICES IN NEW YORK FAR FROM THE HUB OF THE
COMPANY'S OPERATIONS IN COLUMBUS OHIO

YET MR VENTRES THOUGHT BORDEN'S SENIOR MANAGEMENT WAS SO INDISPENSABLE THAT
IN 1989 HE COOKED UP A QUIRKY ANTITAKEOVER STRATEGY THE PLAN WHICH HAS
SINCE BEEN REPEALED BY THE BOARD CALLED FOR BORDEN'S TOP 25 EXECUTIVES TO
QUIT IF SHAREHOLDERS DIDN'T RECEIVE FAIR MARKET VALUE IN A TAKEOVER OR
IF ANY MEMBER OF THE TOP MANAGEMENT TEAM WAS FIRED OR DEMOTED

EXECUTIVE RECRUITERS WERE LESS THAN IMPRESSED WITH MR VENTRES'S NEWFANGLED
IDEA IT WAS A JOKE SAYS TONY REYNES PARTNER AT TESARREYNES INC IN
CHICAGO I DON'T THINK MOST PEOPLE REGARDED SOME OF BORDEN'S PEOPLE IN HIGH
ESTEEM

AS THE ECONOMY BEGAN TO SLOW IN THE LATE 1980S THE CRACKS IN BORDEN'S
STRATEGY BEGAN TO SHOW MOUNTING COMPETITION FROM PRIVATELABEL PRODUCTS AND
A CONSUMER FOCUS ON PRICE HAVE MADE IT DIFFICULT FOR MANY MARKETERS OF
NATIONAL BRANDS TO RAISE PRICES AND BORDEN'S VAST COLLECTION OF TINY BRAND
NAMES IN DISPARATE CATEGORIES MADE ANY COHESIVE MARKETING PROGRAM DIFFICULT
AND EXPENSIVE

THE WORLD WAS GOING GLOBAL AND BORDEN WAS STILL A LONG WAY FROM BEING
NATIONAL SAYS JOHN MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES INC
IN RETROSPECT THEY BOUGHT THE JUNK

BY THE TIME MR D'AMATO BECAME CHIEF EXECUTIVE IN NOVEMBER 1991 THE COMPANY
WAS AILING BY THE END OF 1991 BORDEN'S SALES HAD DECLINED 5 FROM THE
PREVIOUS YEAR AND NET INCOME HAD FALLEN 19 MR D'AMATO BEGAN SCRAMBLING
TO CONSOLIDATE THE FARFLUNG PURCHASING DISTRIBUTION AND MANUFACTURING
SYSTEMS THE STRATEGY ALSO MEANT A GREATER CENTRALIZATION OF MANAGEMENT

MR D'AMATO ASSOCIATES SAY WAS PROUD OF HIS INVOLVEMENT IN THE DAYTODAY
OPERATIONS ALTHOUGH HIS HOME IS IN MASSACHUSETTS AND BORDEN'S CORPORATE
OFFICES ARE IN NEW YORK MR D'AMATO OFTEN SPENT SEVERAL DAYS EACH WEEK AT
THE COLUMBUS OPERATIONS HUB REVIEWING EVERYTHING FROM THE STRATEGY FOR
MARKETING CHEESE PRODUCTS TO MANAGERS' PROGRESS IN MESHING THE COMPUTER
SYSTEMS

TONY WENT INTO THE FIELD SAYS PETER CUSACK AN EXECUTIVE RECRUITER WHO
SPENT SIX YEARS AT BORDEN HE KEPT VERY CLOSE TABS ON WHAT WAS GOING ON
EVERYWHERE

HE ALSO BECAME DEEPLY INVOLVED IN EFFORTS TO BETTER MARKET THE COMPANY'S
MANY BRANDS MR D'AMATO LED A WIDELY PANNED MOVE TO REVIVE THE COMPANY'S
BESTKNOWN BUT FADED SYMBOL ELSIE THE COW AS THE CENTERPIECE OF AN
AMBITIOUS ADVERTISING CAMPAIGN FOR DAIRY PRODUCTS HE ALSO HOPED TO UNITE
SOME OF THE COMPANY'S DIVERSE PRODUCTS UNDER THE COMPANY'S TEPID SLOGAN IF
IT'S BORDEN IT'S GOT TO BE GOOD FORMER EXECUTIVES SAY MR VENTRES
CONSIDERED THE EFFORTS A WASTE OF MONEY

MR D'AMATO'S CLOSE SCRUTINY QUICKLY RUFFLED THE FEATHERS OF SENIOR MANAGERS
AT COLUMBUS OPERATIONS WHO HAD OPERATED WITH A FREE HAND FOR YEARS
EXECUTIVES IN FOOD DIVISIONS COMPLAIN THAT HE SHOWED LITTLE FAITH IN THEIR
EXPERIENCE OR ABILITIES RELYING INSTEAD ON OUTSIDE CONSULTANTS OR
MANAGERS FROM BORDEN'S CHEMICAL BUSINESS

PEOPLE CLOSE TO THE TWO MEN SAY MR D'AMATO ALSO BEGAN TO ALIENATE MR
VENTRES SOON AFTER SUCCEEDING HIM THOSE CLOSE TO MR VENTRES SAY HE
DISAPPROVED OF MR D'AMATO'S PUBLIC CRITICISM OF THE COMPANY MR D'AMATO
DIDN'T HOLD BACK DURING A SPEECH TO ANALYSTS IN SEPTEMBER 1992 HE SAID
BORDEN GOES TO MARKET EVERY DAY WITH A FRAGMENTED OUTOFDATE ORGANIZATION
THAT IS NOT UP TO THE INCREASING PRESSURES OF TODAY'S ECONOMY

IT WASN'T UNTIL THE FIRSTQUARTER OF 1993 THAT MR D'AMATO REALIZING THE
MAGNITUDE OF BORDEN'S PROBLEMS BEGAN TO CONSIDER GETTING RID OF SOME OF THE
BUSINESSES HE HAD BEEN TRYING TO CONSOLIDATE HE ALSO BEGAN LOOKING OUTSIDE
FOR EXPERIENCED FOOD MARKETERS IN FEBRUARY JON G HETTINGER PRESIDENT OF
BORDEN'S GROCERYPRODUCTS DIVISION RESIGNED QUICKLY FOLLOWED BY THE HEADS
OF BORDEN'S DAIRY AND PASTA BUSINESSES

MR D'AMATO ALSO BEGAN TO WRESTLE WITH BORDEN'S LAURA SCUDDER'S SNACKFOOD
LINE WHICH REMAINS THE MOST STRIKING EXAMPLE OF HOW BORDEN SPIRALED OUT OF
CONTROL ACQUIRED IN 1987 FOR NEARLY 100 MILLION IT WAS ONE OF THE
STRONGEST REGIONAL POTATOCHIP BRANDS IN THE COUNTRY WITH THE NO 2 SPOT IN
THE HUGE CALIFORNIA MARKET

BUT SOME CURRENT AND FORMER EXECUTIVES SAY LAURA SCUDDER'S WAS A DISASTER
FROM THE START IN BORDEN'S EAGERNESS TO MAKE THE ACQUISITION ITS DUE
DILIGENCE HAD FAILED TO UNCOVER MAJOR UNION PROBLEMS THAT PROMPTED BORDEN TO
CLOSE ALL OF LAURA SCUDDER'S CALIFORNIA PLANTS ABOUT A YEAR AFTER THE
PURCHASE BORDEN BEGAN USING A MORE EFFICIENT PLANT IN SALT LAKE CITY ONLY
TO FIND THAT IT COULDN'T DELIVER THE PRODUCT OVER THE SIERRA NEVADA WITHOUT
INCURRING HIGH COSTS AND A LOT OF BROKEN POTATO CHIPS

THE QUALITY PROBLEMS COUPLED WITH GROWING COMPETITION ERODED LAURA
SCUDDER'S MARKET SHARE SO MUCH THAT EVEN HEAVY DISCOUNTING COULDN'T ERASE
THE DECLINE IN MAY BORDEN SOLD LAURA SCUDDER'S TO ANOTHER REGIONAL COMPANY
FOR ABOUT 15 MILLION ALL TOLD THE FIASCO COST BORDEN NEARLY 150 MILLION

SHAREHOLDERS GREW RESTIVE AT THE ANNUAL MEETING LAST APRIL DIRECTORS FOUND
THEMSELVES UNDER ATTACK WHILE MR VENTRES SAT MUTE STARING AT THE TABLE IN
FRONT OF HIM A STEADY STREAM OF SHAREHOLDERS WENT TO THE MICROPHONE AND
ACCUSED HIM OF AS AT LEAST ONE PUT IT DESTROYING THE COMPANY SOME URGED
HIM TO RESIGN

THIS IS A CASEBOOK EXAMPLE OF A TAME INCOMPETENT BOARD OF DIRECTORS
FAILING TO DO ITS JOB PROPERLY WILLIAM STEINER AN INVESTOR WHO BOUGHT
BORDEN STOCK AT 33 RECALLS SAYING THESE RUINOUS POLICIES AND ROTTEN
ACQUISITIONS SHOULD HAVE BEEN PREVENTED

DESPITE THE CRITICISM OF MR VENTRES'S ACQUISITION SPREE AND MR D'AMATO'S
SLOWMOVING CONSOLIDATION EFFORTS THE BOARD IN JUNE AMENDED MR D'AMATO'S
EMPLOYMENT CONTRACT FOR FIVE YEARS AND PROMISED TO PAY HIM 900000 A YEAR
IF HE WAS DISMISSED ABOUT THAT TIME BORDEN RECRUITED MR SHAMES TO HEAD
ITS FOOD OPERATIONS IN ADDITION TO MAKING MR SHAMES PRESIDENT MR D'AMATO
OFFERED HIM A COMPENSATION PACKAGE THAT EXCEEDED THOSE OF BORDEN'S OTHER TOP
EXECUTIVES INCLUDING HIS OWN

WITH MR SHAMES MR D'AMATO ACCELERATED HIS EXAMINATION OF BORDEN'S MYRIAD
BUSINESSES MR D'AMATO ALSO BROUGHT IN TEAMS OF MANAGEMENT CONSULTANTS AND
FINANCIAL ADVISERS INCLUDING BOOZ ALLEN & HAMILTON INC NEW ENGLAND
CONSULTING GROUP AND FIRST BOSTON CORP TO HELP HIM EVALUATE THE
BUSINESSES

BUT THE INCURSION OF CONSULTANTS ALONG WITH FEARS ABOUT CHANGES IN THE
EXECUTIVE SUITE ALL BUT PARALYZED BORDEN'S MANAGEMENT MORALE REACHED NEW
LOWS AT COLUMBUS RUMORS CIRCULATED SOME MANAGERS SAY THEY WERE TOO
DISTRACTED TO FOCUS ON RUNNING THEIR BUSINESSES

THE LAST STRAW MAY HAVE BEEN THE DETERIORATION OF BORDEN'S 125 BILLION
PASTA BUSINESS ONCE THE GEM OF ITS FOOD PORTFOLIO THE COMPANY HAD
ASSEMBLED A NUMBER OF STRONG REGIONAL BRANDS SUCH AS PRINCE AND PENNSYLVANIA
DUTCH BRANDS BECOMING THE NO 1 MARKETER OF BRANDNAME PASTAS IN THE US
YET BY LAST NOVEMBER THE PASTA BUSINESS WAS LOSING MARKET SHARE AND
HERSHEY FOODS CORP WAS THREATENING TO BECOME THE MARKET LEADER PARTLY TO
BLAME A FLAWED STRATEGY BEGUN UNDER MR VENTRES TO TRANSFORM BORDEN'S
BESTSELLING CREAMETTE PASTA INTO A NATIONAL BRAND BY DOING SO BORDEN
UNDERCUT ITS OWN STRONG REGIONAL BRANDS AND ALSO PLACED CREAMETTE IN DIRECT
COMPETITION WITH POPULAR LOCAL BRANDS

IN OCTOBER THE BOARD'S INDEPENDENT DIRECTORS BEGAN TO MEET WITH MERGER
LAWYER MARTIN LIPTON TO TRY TO DEVISE A SOLUTION FOR BORDEN'S DIFFICULTIES
MR LIPTON WHO WAS ORIGINALLY RETAINED BY BORDEN PRESENTED THE IDEA OF
SELLING THE ENTIRE COMPANY ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION
MR D'AMATO SAID IT WASN'T THE RIGHT TIME GIVEN BORDEN'S WEAK CONDITION

ON NOV 30 MR D'AMATO PRESENTED TO THE BOARD THE RECOMMENDATIONS OF HIS
MONTHSLONG ANALYSIS SELL OFF THE FLAGGING US SNACKFOOD BUSINESS AND
SOME NICHE GROCERY BRANDS AND TAKE A 650 MILLION AFTERTAX CHARGE AGAINST
FOURTHQUARTER EARNINGS PEOPLE CLOSE TO THE BOARD SAY SOME DIRECTORS BECAME
CONVINCED HE WOULD TRY TO BLOCK EFFORTS TO SELL THE COMPANY

THE DIRECTORS WHO HAD BEEN HORRIFIED BY PRESENTATIONS MADE BY BOOZ ALLEN
DESCRIBING THE CONDITION OF BORDEN'S BUSINESSES ALSO FOUND MR D'AMATO'S
PLAN UNPALATABLE BECAUSE IT FELL FAR SHORT OF WHAT WALL STREET WAS EXPECTING
AND INCLUDED WHAT WOULD BE THE FOURTH RESTRUCTURING CHARGE IN FIVE YEARS ON
DEC 9 THE INDEPENDENT DIRECTORS MET AND VOTED TO REQUEST MR D'AMATO'S
RESIGNATION

ASSOCIATES SAY MR D'AMATO WAS SORELY DISAPPOINTED THAT MR VENTRES DIDN'T
DEFEND HIM WHILE HE STILL SAT ON THE BOARD MR VENTRES MEANWHILE SPEAKS
BITTERLY OF HIS FORMER PROTEGE THESE DAYS THE FORMER FRIENDS DON'T TALK TO
EACH OTHER

IN THE END THE EFFORTS TO SELL THE COMPANY PROVED FUTILE HANSON PLC AND
RJR NABISCO HOLDINGS CORP EMERGED BRIEFLY AS POSSIBLE BIDDERS BUT TALKS
BROKE DOWN BEFORE CHRISTMAS A NUMBER OF OTHER POSSIBLE BUYERS INCLUDING
KOHLBERG KRAVIS ROBERTS & CO AND NESTLE SA LOOKED OVER BORDEN'S PORTFOLIO
BUT PASSED ACCORDING TO PEOPLE CLOSE TO THE COMPANY

ON JAN 5 BORDEN'S BOARD REALIZING ITS LIMITED OPTIONS AFTER THE
POSSIBILITY OF SELLING THE COMPANY APPEARED DISTANT APPROVED A
RESTRUCTURING PLAN IT WAS ALMOST IDENTICAL TO THE ONE MR D'AMATO HAD
PRESENTED JUST A MONTH EARLIER

THE COMPANY'S BYLAWS PROVIDE FOR A BOARD OF NINE DIRECTORS MESSRS D'AMATO
AND VENTRES LEFT THE COMPANY IN THE PAST TWO MONTHS ANOTHER DIRECTOR
THEODORE COOPER CHAIRMAN AND CHIEF EXECUTIVE OF UPJOHN CO DIED IN APRIL
MR SHAMES WAS ELECTED TO THE BOARD IN JUNE

 ROBERT P LUCIANO DIRECTOR SINCE 1989 CHAIRMAN AND CHIEF EXECUTIVE OF
SCHERINGPLOUGH CORP

 FREDERICK E HENNIG DIRECTOR SINCE 1990 PRESIDENT AND CHIEF OPERATING
OFFICER OF WOOLWORTH CORP

 WILBERT J LEMELLE DIRECTOR SINCE 1987 PRESIDENT OF PHELPSSTOKES FUND
AN EDUCATIONAL FOUNDATION

 H BARCLAY MORLEY DIRECTOR SINCE 1992 FORMER CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF STAUFFER CHEMICAL CO

 PATRICIA CARRY STEWART DIRECTOR SINCE 1976 FORMER VICE PRESIDENT OF THE
EDNA MCCONNELL CLARK FOUNDATION A CHARITABLE ORGANIZATION

 FRANK J TASCO DIRECTOR SINCE 1988 BORDEN'S CHAIRMAN SINCE MR
D'AMATO'S DEPARTURE FORMER CHAIRMAN AND CHIEF EXECUTIVE OF MARSH & MCLENNAN
COS

 ERVIN R SHAMES DIRECTOR SINCE 1993 BORDEN'S PRESIDENT AND CHIEF
EXECUTIVE OFFICER

 RJ VENTRES DIRECTOR SINCE 1985 FORMER BORDEN CHAIRMAN AND CHIEF
EXECUTIVE RESIGNED JAN 7

 ANTHONY S D'AMATO DIRECTOR SINCE 1990 FORMER BORDEN CHAIRMAN AND CHIEF
EXECUTIVE RESIGNED DEC 9 9401180007 940118 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

ALCATEL ALSTHOM SA FRANCE TWO BILLION FRENCH FRANCS OF 575 EUROBONDS
DUE FEB 17 2004 AT ISSUE PRICE 9949 VIA SOCIETE GENERALE AND JOINT LEAD
UNDERWRITER CREDIT COMMERCIAL DE FRANCE REOFFERED AT 97865 TO YIELD 604
A MARGIN OF 36 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES TWO

CASSA DI RISPARMIO DI VERONA VICENZA BELLUMO E ANCONA SPA LONDON BRANCH
ITALY 100 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT
ISSUE AND FIXED REOFFER PRICE 997 VIA CITIBANK INTERNATIONAL PLC INTEREST
PAID QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 025
BASIS POINT AT REOFFER PRICE YIELD IS 315 BASIS POINTS ABOVE LIBOR FEES
025

COMMERZBANK INTERNATIONAL SA LUXEMBOURG GERMAN PARENT 75 MILLION OF
FLOATINGRATE EURONOTES DUE FEB 16 1996 AT ISSUE AND FIXED REOFFER PRICE
PAR VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAID QUARTERLY AT 125
BASIS POINTS OVER THREEMONTH LIBOR SUBJECT TO TIMERANGE FACTOR SET TWO
DAYS BEFORE PAYMENT DATE RANGES AS FOLLOWS FOR FIRST TWO QUARTERS RANGE 3
TO 4 FOR SECOND TWO QUARTERS RANGE 3125 TO 4625 THIRD TWO QUARTERS
RANGE 325 TO 5375 AND FOR LAST TWO QUARTERS RANGE 35 TO 6 FEES 015

DIXONS GROUP TREASURY PLC UK PARENT 100 MILLION OF 775 EUROBONDS
DUE FEB 16 2004 AT ISSUE PRICE 100876 VIA SAMUEL MONTAGU & CO REOFFERED
AT 99301 TO YIELD 785 A MARGIN 140 BASIS POINTS ABOVE COMPARABLE UK
GILT GUARANTOR DIXONS GROUP PLC FEES TWO

TOYOBO CO JAPAN FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE APRIL
28 1998 AT ISSUE PRICE PAR VIA SUMITOMO FINANCE INTERNATIONAL PLC
INTEREST PAID QUARTERLY AND FLOATS AT 275 BASIS POINTS OVER THREEMONTH
LIBOR FEES 02 9401180005 940118 FIRST STOP BOISE NEXT STOP MARS 
FIRMS TUTOR FUTURE SPACE TOURISTS  BY JACQUELINE SIMMONS STAFF
REPORTER OF THE WALL STREET JOURNAL

BOISE IDAHO HERE'S A CLASS THAT WILL SWEEP YOU OFF YOUR FEET

THRILL SEEKERS CAN NOW SIGN UP FOR A CRASH COURSE JOINTLY OFFERED BY
INTERGLOBAL SPACE LINES INC AND THE WEAVER AEROSPACE CORP THE TOPIC
FLOATING THROUGH SPACE THEORY AND PRACTICAL APPLICATION THE COST 2000
FOR A ONEDAY FLOAT AND 3000 FOR A TWODAY COURSE

DRIFTING AROUND SPACE SHOULDN'T BE LIMITED TO ASTRONAUTS AND SPACE
ENGINEERS SAYS RAND SIMBERG PRESIDENT OF INTERGLOBAL A COMPANY FORMED
LAST YEAR AS ITS FIRST VENTURE TO PREPARE AVERAGE CITIZENS FOR SPACE
INTERGLOBAL ARRANGED WITH WEAVER TO GIVE STUDENTS THE RIDES OF THEIR LIVES
WEAVER HAS BEEN PROVIDING WEIGHTLESS FLIGHTS FOR RESEARCHERS SINCE 1987

THE COMPANIES BEGAN OFFERING CLASSES TO THE GENERAL PUBLIC THIS WEEK SO
FAR THERE ARE NO TAKERS

FUTURE PARTICIPANTS WOULD FLY TO WEAVER'S TESTFLIGHT CENTER IN BOISE WHERE
THEY UNDERGO A FOURHOUR LECTURE ON SUCH THINGS AS WORK STATIONS AND
WEIGHTLESS OPERATIONS AFTER A BREAK FOR LUNCH STAY AWAY FROM THE GREASY
STUFF MR SIMBERG RECOMMENDS THE FUN BEGINS STUDENTS BOARD A NORTH
AMERICAN SABRELINER EXECUTIVE JET WHICH FIRST SOARS TO ABOUT 20000 FEET
BEFORE GOING INTO A GENTLE DIVE THEN THE PILOT SHOOTS UP AT A 45DEGREE
ANGLE FOR ABOUT 10 SECONDS

NEXT THE PILOT THROTTLES THE ENGINES CAUSING THE AIRPLANE TO LAUNCH INTO A
SUBORBITAL TRAJECTORY THAT PROVIDES 20 TO 25 SECONDS OF TOTAL
WEIGHTLESSNESS THIS MANEUVER IS REPEATED ABOUT A DOZEN TIMES

AT FIRST PARTICIPANTS ARE ENCOURAGED NOT TO MOVE AROUND TOO MUCH MR
SIMBERG SAYS BUT THEY DO LEARN TO PERFORM SUCH ACTIVITIES AS MOVING ALONG A
HANDRAIL AND POURING LIQUID WITHOUT GRAVITY WE WANT TO GIVE THE FEELING OF
WHAT IT WOULD BE LIKE TO WALK ON THE MOON OR WALK ON MARS MR SIMBERG
SAYS

JEFFREY SMITH A SEASONED PARAGLIDER AND ROCK CLIMBER AGREED TO PARTICIPATE
IN A FLIGHT AFTER HE WAS HIRED TO DESIGN THE LIGHTING FOR A WEAVER PROJECT
I DON'T DO DRUGS BUT FOR ME IT WAS LIKE AN ENDORPHIN RUSH SAYS MR
SMITH 34 YEARS OLD HE CALLS THE EXPERIENCE INCREDIBLE THOUGH HE GOT
SICK ABOUT 10 TIMES DURING THE FLIGHT

AS FOR GREATER HAZARDS THE COMPANIES SAY THEY ARE COVERED BY STANDARD
AIRCRAFT INSURANCE BUT THERE IS REALLY NO RATIONAL REASON TO BE
CONCERNED MR SIMBERG SAYS REASSURINGLY 9401180004 940118
INTERNATIONAL BRITAIN'S MAJOR DENIES KNOWING OF IRAQ ARMS SALES 
 BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL

LONDON IN THE FIRST APPEARANCE OF A BRITISH PRIME MINISTER BEFORE AN
INVESTIGATIVE TRIBUNAL JOHN MAJOR TESTIFIED YESTERDAY THAT HE WASN'T
INFORMED ABOUT A 1988 GOVERNMENT DECISION TO EASE RESTRICTIONS ON ARMS SALES
TO IRAQ

THE TESTIMONY CAME BEFORE A TRIBUNAL THAT THE PRIME MINISTER HIMSELF SET UP
IN 1992 FOLLOWING REVELATIONS THAT THE BRITISH GOVERNMENT HAD SECRETLY
APPROVED THE EXPORT TO IRAQ OF SOPHISTICATED EQUIPMENT USED TO MAKE WEAPONS
THE BRITISH MANUFACTURER OF THE EXPORTS WHICH IRAQ USED TO HELPED CONSTRUCT
ITS WAR MACHINE FACED CRIMINAL CHARGES UNTIL PROVING DURING TRIAL THAT THE
SALES HAD THE APPROVAL OF MARGARET THATCHER'S GOVERNMENT

IN CONTRAST WITH MRS THATCHER'S COMBATIVE APPEARANCE LAST MONTH MR MAJOR
WAS CALM AND COOPERATIVE HE ALSO TOOK EVERY OPPORTUNITY TO REMIND HIS
INQUISITORS WHO HIRED THEM WHEN THEY ASKED MR MAJOR TO TRY EXPLAINING THE
DECISION OF THOSE WHO RELAXED THE ARMS RESTRICTIONS IN 1988 HE SAID IT IS
NOT FOR ME TO REACH THE CONCLUSION THAT I HAVE INVITED THIS INQUIRY TO
REACH

ALTHOUGH THE SCANDAL LARGELY OCCURRED ON LADY THATCHER'S WATCH MR MAJOR
BECAME FOREIGN SECRETARY IN 1989 AND PRIME MINISTER IN 1990 HE HAD MADE
HIMSELF VULNERABLE BY INITIALLY DENYING THAT THE GOVERNMENT EVER RELAXED ITS
POLICY OF EXPORTS TO IRAQ WHEN THE OPPOSITE PROVED TO BE TRUE CRITICS
ACCUSED HIM OF A COVERUP AND IT WAS THAT CHARGE THAT HE TOOK PAINS
YESTERDAY TO DENY

BUT PLEADING IGNORANCE LEFT HIM OPEN TO CRITICISM TOO AFTER LISTENING TO
MR MAJOR'S TESTIMONY ROBIN COOK THE LABOR PARTY'S SHADOW TRADE AND
INDUSTRY SECRETARY SAID HIS ALIBI IS THAT HE DID NOT KNOW WHAT WAS GOING
ON IN THE DEPARTMENT FOR WHICH HE WAS RESPONSIBLE THE DEPARTMENTS THROUGH
WHICH HE PASSED APPEAR STUFFED WITH DOCUMENTS HE NEVER SAW OR WHICH HE SAW
BUT DID NOT READ TO THE END OR WHICH HE READ BUT DID NOT ACT ON

THE IRAQI ARMS SCANDAL HAS PROMPTED CRITICS TO CONTEND THAT MRS THATCHER'S
GOVERNMENT PRIVATELY CATERED TO THE WISHES OF BRITAIN'S DEFENSE INDUSTRY TO
EARN BIG PROFITS FROM EXPORTS TO IRAQ IN HER APPEARANCE LAST MONTH SHE
HAUGHTILY DISMISSED SUCH ACCUSATIONS

WHEN IT IS COMPLETED THE INQUIRY WILL CULMINATE IN A REPORT TO THE
GOVERNMENT THE INQUIRY HAS NO PROSECUTORIAL POWERS AND MOST WITNESS
TESTIMONY ISN'T USEABLE IN ANY CRIMINAL COURT 9401180003 940118 WHO'S
NEWS D&B EXECUTIVE RESIGNS POST AT NIELSEN UNIT  BY LAURA
BIRD STAFF REPORTER OF THE WALL STREET JOURNAL

WESTPORT CONN DUN & BRADSTREET CORP SAID JOHN C HOLT RESIGNED AS AN
EXECUTIVE VICE PRESIDENT AND CHAIRMAN OF ITS AC NIELSEN MARKET RESEARCH
UNIT

MR HOLT 53 YEARS OLD TOOK A POST AS PRESIDENT AND CHIEF EXECUTIVE OF
ANALYTIC SCIENCES CORP A MAJOR UNIT OF PRIMARK CORP WHICH PROVIDES
INFORMATION SERVICES MR HOLT HAS BEEN A DIRECTOR OF PRIMARK BASED IN
MCLEAN VA SINCE 1985

MR HOLT LOST HIS OPERATIONAL DUTIES LAST JULY IN A SHAKEUP OF D&B'S KEY
MARKETING INFORMATION BUSINESSES ALTHOUGH HE REMAINED NIELSEN CHAIRMAN AT
THAT TIME HE WAS NAMED EXECUTIVE VICE PRESIDENT GLOBAL RESOURCES A STAFF
POSITION INVOLVED IN HUMAN RESOURCES ISSUES AND IN CHARGE OF COMPANY
COMMUNICATIONS

A D&B SPOKESMAN SAID THE COMPANY HAD NO IMMEDIATE PLANS TO NAME A SUCCESSOR
TO MR HOLT AS NIELSEN CHAIRMAN MR HOLT HAD BEEN AN EXECUTIVE VICE
PRESIDENT OF D&B SINCE 1982 AND A CORPORATE DIRECTOR SINCE 1985 A POSITION
HE ALSO RESIGNED HE HAD BEEN NIELSEN CHAIRMAN SINCE 1987

D&B'S NIELSEN AND IMS INTERNATIONAL MARKETINGDATA SERVICES HAVE FACED
INTENSE COMPETITION IN RECENT YEARS PARTICULARLY FROM INFORMATION RESOURCES
INC CHICAGO THE TWO COMPANIES COLLECT SALES DATA AROUND THE CLOCK FROM
SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS USING CHECKOUT SCANNER
INFORMATION AND SELL IT TO THE WIDE VARIETY OF PACKAGEDGOODS MANUFACTURERS
AND OTHER COMPANIES EAGER TO KNOW AS SOON AS POSSIBLE WHAT CUSTOMERS ARE
BUYING

THE TWO COMPANIES' BATTLE INTENSIFIED LAST YEAR WHEN GEORGE R GARRICK A
TOP IRI EXECUTIVE WAS LURED AWAY TO NIELSEN HE STAYED FOUR MONTHS ONLY TO
REJOIN IRI MR HOLT FAILED TO TURN AROUND THE NIELSEN SITUATION WHERE
IRI IS GAINING MARKET SHARE AND DECIDED HIS OPPORTUNITIES WERE ELSEWHERE
SUGGESTED ONE PERSON FAMILIAR WITH D&B

LAST JULY SERGE OKUN 47 A SENIOR VICE PRESIDENT AT D&B AND PRESIDENT OF
ITS IMS INTERNATIONAL PHARMACEUTICAL RESEARCH UNIT WAS NAMED AN EXECUTIVE
VICE PRESIDENT AND ASSUMED A NEW POSITION AS NIELSEN PRESIDENT AND CHIEF
EXECUTIVE HE HAS HAD OPERATING RESPONSIBILITY FOR NIELSEN SINCE THEN

D&B A LEADING MARKETER OF BUSINESS INFORMATION SOFTWARE AND SERVICES HAD
REVENUE IN 1992 OF 48 BILLION

IN SEPTEMBER 1992 PRIMARK PURCHASED DATASTREAM INTERNATIONAL LTD A UNIT
OF D&B FOR 191 MILLION IN CASH AND NOTES DATASTREAM INTERNATIONAL A
FINANCIALINFORMATION PROVIDER HAD 1991 REVENUE OF 946 MILLION AND
EXCELLENT MARGINS ACCORDING TO PRIMARK AT THE TIME PRIMARK HAD 3097
MILLION IN REVENUE IN 1992

MR HOLT ALSO WAS ELECTED AN EXECUTIVE VICE PRESIDENT OF PRIMARK AND WILL
CONTINUE TO SERVE ON THAT COMPANY'S BOARD

JOSEPH E KASPUTYS PRIMARK CHAIRMAN AND CHIEF EXECUTIVE SAID MR HOLT IS
AN EXPERIENCED INFORMATIONINDUSTRY EXECUTIVE WHO WILL HELP ANALYTIC
SCIENCES GROW 9401180002 940118 CORPORATE FOCUS TYSON FOODS ISN'T
CHICKENHEARTED ABOUT EXPANSION  FOUR NEW POULTRY PLANTS PLANNED TO
MEET DEMAND ESPECIALLY IN RESTAURANTS  BY ARTHUR BUCKLER STAFF
REPORTER OF THE WALL STREET JOURNAL

THE CHICKEN KING IS ON THE MOVE AGAIN

IN THE PAST TWO YEARS TYSON FOODS INC BY FAR THE NATION'S LARGEST POULTRY
PROCESSOR HAS SPENT MUCH OF ITS TIME DIVERSIFYING INTO SEAFOOD PROCESSING
 WITH ITS ACQUISITIONS OF ARCTIC ALASKA FISHERIES CORP AND LOUIS KEMP
SEAFOOD CO AS WELL AS BEEF AND PORK

BUT 75 OF TYSON'S BUSINESS IS STILL POULTRY AND THE CONTINUING BOOM IN
CHICKEN CONSUMPTION HAS PROMPTED A RETURN TO THE COOP IN A BIG WAY THIS
MONTH IN ITS BIGGEST EXPANSION SINCE NEARLY DOUBLING IN SIZE IN 1989 BY
ACQUIRING HOLLY FARMS CORP FOR 129 BILLION TYSON ANNOUNCED PLANS TO
BUILD OVER THE NEXT THREE YEARS FOUR POULTRY PLANTS THAT WILL EACH PROCESS
13 MILLION CHICKENS A WEEK COUNTING ONE OTHER PLANT ALREADY UNDER
CONSTRUCTION AND SOME ENLARGEMENT OF EXISTING FACILITIES TYSON'S PLANS WILL
COST ABOUT 400 MILLION AND INCREASE ITS WEEKLY PROCESSING CAPACITY BY AT
LEAST 30 THE OVERALL EXPANSION IS EXPECTED TO ADD AT LEAST 8500 JOBS TO
TYSON'S PAYROLL THE COMPANY NOW EMPLOYS ABOUT 50000 WORKERS

EXECUTIVES AT THE COMPANY BASED IN SPRINGDALE ARK SAY THEY ARE MERELY
ACTING TO MEET GROWING DEMAND DOMESTIC AND FOREIGN ESPECIALLY IN
RESTAURANTS WHERE TYSON IS ESPECIALLY STRONG WE DON'T SEE IT AS A HUGE
RISK SAYS DONALD BUDDY WRAY TYSON'S CHIEF OPERATING OFFICER

NEITHER DO INVESTORS THE STOCK DIDN'T MOVE MUCH AFTER THE ANNOUNCEMENT AND
CLOSED AT 23875 A SHARE DOWN 375 CENTS YESTERDAY IN NASDAQ STOCK MARKET
TRADING I GUESS I'D BE CONCERNED ABOUT FOUR NEW PLANTS GOING INTO THE PORK
BUSINESS OR BEEF SAYS ERIC J LARSON ANALYST AT MORGAN STANLEY GROUP
INC BUT THIS IS A BUSINESS THEY KNOW STILL HE ADDS THIS IS A BIG
NUMBER A BIG BIG NUMBER

BUT WITH THE NATION IN A LOVE AFFAIR WITH THE CHICKEN THAT BIG NUMBER MAY
BE JUSTIFIED WITH THE HELP OF EXPORTS US CHICKEN PRODUCTION HAS GROWN AT
AN ANNUAL RATE EXCEEDING 6 IN THE PAST FIVE YEARS AND IS PROJECTED TO GROW
5 THIS YEAR AND WHILE PER CAPITA US CONSUMPTION OF BEEF PORK AND
SEAFOOD HAS BEEN LARGELY STAGNANT OR DECLINING DURING THAT PERIOD PER
CAPITA CHICKEN CONSUMPTION HAS GROWN AT A RATE OF ABOUT 4 A YEAR WITH
AMERICANS PROJECTED TO EAT ON AVERAGE ABOUT 70 POUNDS OF CHICKEN EACH IN
1994

MUCH OF THAT CONSUMPTION IS TAKING PLACE IN RESTAURANTS MOST OF THE BIG
HAMBURGER CHAINS HAVE INTRODUCED NEW CHICKEN OFFERINGS IN RECENT YEARS AS
HAVE FULLSERVICE RESTAURANT CHAINS AND THE GROWING POPULARITY OF ROASTED
CHICKEN HAS YIELDED A NUMBER OF RAPIDLY GROWING FASTFOOD CHICKEN CHAINS 
ALONG WITH A SWIFT RESPONSE FROM PEPSICO INC'S KFC UNIT THE NATION'S
DOMINANT FASTFOOD CHICKEN PURVEYOR LAST YEAR THE CHAIN INTRODUCED THE
COLONEL'S ROTISSERIE GOLD A MARINATED AND ROASTED PRODUCT AND THE PUBLIC
GOBBLED IT UP ALREADY THE MENU ITEM GENERATES 25 OF KFC'S SALES MUCH OF
THAT REVENUE THE CHAIN SAYS IT WOULDN'T OTHERWISE HAVE

WE ALL USED TO GO OUT FOR A HAMBURGER SAYS JOHN M MCMILLIN AN ANALYST
AT PRUDENTIAL SECURITIES INC WE ALL NOW GO OUT FOR ROTISSERIE CHICKEN

ROTISSERIE GOLD ALSO HAS BEEN GOLDEN FOR TYSON WHICH SUPPLIES MUCH OF THE
RAW MATERIAL FOR THE HOT NEW PRODUCT AND TYSON HAS STRENGTHENED ITS HOLD ON
THE REST OF THE RESTAURANT CHICKEN BUSINESS AS WELL THE COMPANY SAYS IT
SELLS CHICKEN TO 90 OF THE 100 TOP RESTAURANT CHAINS ITS FOOD SERVICE
CUSTOMERS WHICH INCLUDE SCHOOLS HOSPITALS AND HOTELS AS WELL AS
RESTAURANTS ACCOUNT FOR 55 OF THE COMPANY'S TOTAL POULTRY SALES UP FROM
40 TO 45 FIVE YEARS AGO

BUT TYSON'S EXPANSION ISN'T WITHOUT RISK WILLIAM P ROENIGK SENIOR VICE
PRESIDENT OF THE NATIONAL BROILER COUNCIL A WASHINGTON GROUP REPRESENTING
CHICKEN PRODUCERS EXPRESSES CONCERN ABOUT OVERPRODUCTION THAT COULD DEPRESS
CHICKEN PRICES ONE OF THESE DAYS WE'RE GOING TO HAVE TO START TO SLOW
DOWN HE SAYS

BUT IN ANNOUNCING ITS EXPANSION TYSON INSISTS THAT CHICKEN CONSUMPTION WILL
CONTINUE TO RISE THOUGH NOT QUITE AS FAST AS IN RECENT YEARS ANALYSTS
AGREE CITING POULTRY'S NUTRITIONAL VALUE AND ADAPTABILITY TO DIFFERENT
SEASONINGS FLAVORINGS AND COOKING METHODS IT'S A VERY VERSATILE SOURCE OF
PROTEIN SAYS RON PAUL A RESTAURANT CONSULTANT AT TECHNOMIC INC IN
CHICAGO

EVEN IF WEAKENED DEMAND DEPRESSES THE INDUSTRY TYSON IS RELATIVELY
INSULATED FROM THE MARKET'S VOLATILITY BECAUSE ONLY 10 OF ITS POULTRY IS
BASIC FRESH CHICKEN SOLD IN SUPERMARKET MEAT CASES

THE BULK OF TYSON'S POULTRY PRODUCTS ARE PROCESSED IN SOME ADDITIONAL WAY
FOR EXAMPLE BY DEBONING MARINATING BREADING OR PARTLY OR FULLY COOKING
IT THE PROFIT MARGINS ON THIS VALUE ADDED CHICKEN ARE HIGHER AND ITS
PRICES ARE LESS SUBJECT TO MARKET PRICE SWINGS THAN UNADORNED POULTRY IS

FOR EXAMPLE TYSON MARINATES ROTISSERIE GOLD CHICKENS BEFORE DELIVERING THEM
TO KFC RESTAURANTS WHICH THEN ROAST THEM OTHER PRODUCTS SHIPPED TO
RESTAURANTS NEED ONLY BE HEATED UP

TYSON EVEN LENDS FOOD TECHNOLOGISTS FROM ITS 75PERSON
RESEARCHANDDEVELOPMENT DEPARTMENT TO RESTAURANTS TO HELP DEVELOP NEW
PRODUCTS KFC SAYS TYSON WAS INSTRUMENTAL IN DEVELOPING ITS HOT WINGS MENU
ITEM AND ALSO WORKED ON ROTISSERIE GOLD

TYSON ALSO SEES CONTINUED GROWTH OUTSIDE THE US THOUGH THE COMPANY DOESN'T
BREAK OUT FIGURES ON SALES TO INDIVIDUAL COUNTRIES ITS TOTAL EXPORTS
DOUBLED TO 8 OF OVERALL SALES IN THE YEAR ENDED OCT 2 FROM 4 IN FISCAL
1990 A NUMBER OF TYSON CUSTOMERS SUCH AS KFC MCDONALD'S CORP AND THE
SAM'S CLUB WHOLESALE OUTLETS OF WALMART STORES INC ARE EXPANDING
RAPIDLY IN MEXICO I THINK MEXICO HAS HUGE POTENTIAL FOR THEM MORGAN
STANLEY'S MR LARSON SAYS

THE DECISION TO BUILD PROCESSING PLANTS FROM SCRATCH IS A DEPARTURE FOR
TYSON OF ITS ROUGHLY 65 FACILITIES ALL BUT THREE WERE ACQUIRED INCLUDING
TWO BEEF PLANTS IN TEXAS WHOSE PURCHASE WAS ANNOUNCED THIS MONTH

MR WRAY SAYS TYSON WOULD HAVE BOUGHT EXISTING FACILITIES THIS TIME TOO BUT
THE PRICES BEING ASKED WERE TOO HIGH NONETHELESS TYSON OFFICIALS SAY THE
COMPANY CAN EASILY ABSORB THE ADDED CAPITAL COSTS WITHOUT TAKING ON MUCH IF
ANY NEW DEBT MR WRAY ESTIMATES THE COMPANY'S TOTAL CAPITAL OUTLAYS WILL
INCREASE TO 300 MILLION IN EACH OF THE NEXT THREE YEARS FROM 225 MILLION
LAST YEAR

BUT TYSON'S ACCELERATING EXPANSION COULD CAUSE SOME GROWING PAINS JUST AS
IT NO LONGER COULD FIND SUITABLE EXISTING PROCESSING FACILITIES FOR SALE AT
THE RIGHT PRICE THE COMPANY MAY FIND IT INCREASINGLY HARD TO RECRUIT
FARMERS WILLING TO WORK UNDER CONTRACT TO RAISE TYSON'S CHICKENS IN FACT
THE COMPANY HAS ALREADY RULED OUT ITS HOME BASE OF NORTHWESTERN ARKANSAS AS
A LOCATION FOR ANY OF THE NEW PLANTS CITING A LABOR SHORTAGE THERE
9401180001 940118 ABBOTT LABS NET ROSE BY 12 IN 4TH PERIOD DOMESTIC
SALES STRONG

NORTH CHICAGO ILL ABBOTT LABORATORIES HELPED BY STRENGTHENING DOMESTIC
SALES REPORTED A 12 INCREASE IN FOURTHQUARTER EARNINGS ON A 63 RISE IN
SALES

THE HEALTHCAREPRODUCTS CONCERN SAID NET INCOME ROSE TO 3913 MILLION OR
48 CENTS A SHARE FROM 3489 MILLION OR 42 CENTS A SHARE IN THE
YEAREARLIER QUARTER THE EARNINGS GAIN CAME AS SALES INCREASED TO 223
BILLION FROM 210 BILLION PERSHARE EARNINGS REFLECT A DECREASE IN THE
NUMBER OF SHARES OUTSTANDING TO 8233 MILLION FROM 8369 MILLION

WORLDWIDE SALES OF PHARMACEUTICAL AND NUTRITIONAL PRODUCTS ROSE 107 TO
118 BILLION THE COMPANY SAID WHILE SALES OF HOSPITAL AND LABORATORY
PRODUCTS RECORDED A LESSROBUST 17 UPTURN TO 105 BILLION THE SLOWER
GROWTH IN HOSPITAL AND LAB PRODUCTS REFLECTS THE NEGATIVE IMPACT OF FOREIGN
CURRENCY TRANSLATIONS AND NEW PRODUCT INTRODUCTIONS IN THE YEAREARLIER
PERIOD A SPOKESMAN SAID

ABBOTT ALSO NOTED THAT DOMESTIC SALES CLIMBED 92 TO 141 BILLION
INTERNATIONAL SALES HURT IN PART BY THE STRONGER US DOLLAR AS WELL AS
WEAKNESS IN THE EUROPEAN ECONOMY ROSE JUST 16 TO 821 MILLION THE LATEST
PERIOD INCLUDED NET LOSSES ON FOREIGN EXCHANGE OF 103 MILLION COMPARED
WITH A NET FOREIGNEXCHANGE GAIN OF 6 MILLION IN THE YEAREARLIER PERIOD

IN A REFERENCE TO ABBOTT'S RESULTS FOR THE YEAR DUANE L BURNHAM CHAIRMAN
AND CHIEF EXECUTIVE SAID HE WAS PLEASED BY OUR STRONG PERFORMANCE IN 1993
PARTICULARLY IN LIGHT OF THE MANY CHANGES OCCURRING IN THE HEALTH CARE
INDUSTRY HE SAID IN EACH OF OUR FOUR BUSINESSESPHARMACEUTICAL
NUTRITIONAL HOSPITAL AND DIAGNOSTIC PRODUCTSGROWTH WAS DRIVEN BY NEW
PRODUCT INTRODUCTIONS AND VOLUME GAINS

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ABBOTT ROSE 125 CENTS TO
2975 9401170162 940117 INTERNATIONAL FORMER GOVERNOR KIDNAPPED BY
REBELS IN MEXICO IS KNOWN FOR REPRESSIVENESS  BY DIANNE SOLIS 
STAFF REPORTER OF THE WALL STREET JOURNAL

SAN CRISTOBAL DE LAS CASAS MEXICO SHORTLY AFTER MIDNIGHT 70YEAROLD
ABSALON CASTELLANOS HAD JUST FINISHED MILKING THE COWS ON HIS SPRAWLING
RANCHO SAN JOAQUIN WHEN HIS WIFE ANSWERED A KNOCK ON THE DOOR DON'T BE
AFRAID THE VISITOR SAID WE DON'T COME TO KILL

THE INTRUDER AND HIS COMRADES IN THE EMILIANO ZAPATA NATIONAL LIBERATION
ARMY THEN WHISKED AWAY MR CASTELLANOS AND TWO OF HIS COWS IT APPEARS
THAT THE REBELS IN THE STATE OF CHIAPAS PLAN TO USE THE WEALTHY FORMER
GOVERNOR IN THEIR EFFORT TO WIN CONCESSIONS FROM THE MEXICAN GOVERNMENT

SCORES OF PEOPLE FROM INDIANS TO ACADEMICS TO PRIESTS REFER TO MR
CASTELLANOS AS A LEADING SYMBOL OF THE REPRESSION OF INDIANS IN CHIAPAS

MR CASTELLANOS WHO SERVED AS GOVERNOR FROM 1982 UNTIL 1988 AND WAS AN ARMY
GENERAL IN ONE OF THE STATE'S TWO MILITARY ZONES WAS BORN INTO A FAMILY
WITH HUGE LAND HOLDINGS HE MADE HIS MARK IN THE MILITARY BECOMING A TOP
OFFICIAL IN THE MILITARY COLLEGE AND A CHIAPAS ZONE COMMANDER WHICH GAVE
HIM THE RANK OF GENERAL BECAUSE OF HIS MILITARY BEARING MR CASTELLANOS IS
STILL REFERRED TO AS THE GENERAL BY MOST PEOPLE IN CHIAPAS

IN 1982 HE BECAME GOVERNOR OF CHIAPAS A STATE OF 32 MILLION PEOPLE THAT
HAS MUCH MORE IN COMMON WITH NEIGHBORING GUATEMALA THAN IT DOES WITH MEXICO
SOON MR CASTELLANOS WAS BEING CALLED EL BIKINI BY THE NEWS MAGAZINE
PROCESO LIKE A BIKINI PROCESO SAID NO ONE COULD QUITE UNDERSTAND HOW HE
WAS SUPPORTED AND EVERYONE HOPED HE WOULD FALL

ARACELI BURGUETE A HUMANRIGHTS WORKER SAYS THAT DURING MR CASTELLANOS'S
GOVERNORSHIP ON AVERAGE THERE WAS ONE SUSPICIOUS KILLING OF A CHIAPAN
INDIAN EACH MONTH SHE THINKS SHE WAS A VICTIM TOO IN DECEMBER 1986 WHILE
SHE WAS EIGHT MONTHS PREGNANT SHE SAYS SOMEONE SHOT AT HER AND WOUNDED HER
IN THE HAND BELIEVING THE GOVERNOR'S POLICE FORCES WERE BEHIND THE
SHOOTING MS BURGUETE FLED TO MEXICO CITY WHERE SHE NOW FIGHTS FOR INDIAN
CAUSES

MS BURGUETE SAYS THAT WHILE MR CASTELLANOS HELD OFFICE POLICE AND
MILITARY FORCES KILLED NEARLY A DOZEN INDIANS INVOLVED IN PRESSING FOR LEGAL
LAND RIGHTS NEAR HIS ESTATE INDIAN LEADERS CLAIM THAT THE CASTELLANOS
CATTLE RANCH BELONGS TO THEM THEY ARE PARTICULARLY ANGRY THAT IT INCLUDES A
SPRING WHICH THEY SAY IN MANY MAYAN CULTURES IS A SACRED GIFT FROM THE
LORDS OF THE EARTH

DURING MR CASTELLANOS'S GUBERNATORIAL TENURE AMNESTY INTERNATIONAL ISSUED
SEVERAL CONDEMNATIONS ABOUT THE MURDER TORTURE AND ARRESTS OF PEASANT
FARMERS AND INDIAN LEADERS IN ONE AMNESTY CASE AN ORGANIZER OF THE
NATIONAL FRONT AGAINST REPRESSION WAS INVITED TO A MEETING BETWEEN HIS GROUP
AND THE GOVERNOR THEN WAS ARRESTED WHILE WAITING FOR THE MEETING TO
BEGIN

THE MEXICAN ACADEMY OF HUMAN RIGHTS RELEASED A REPORT DURING THAT TIME
RAISING QUESTIONS ABOUT NEARLY TWO DOZEN DEATHS OF PEASANT AND INDIAN
LEADERS AT A NEWS CONFERENCE AFTER HIS JAN 2 ABDUCTION MR CASTELLANOS'S
WIFE ELSY AND HIS TWO SONS SAID THAT DURING HIS TENURE AS GOVERNOR NO
PEASANT OR INDIGENOUS PERSON WAS THE VICTIM OF ANY FORM OF REPRESSION

UNTIL THIS WEEKEND PRESIDENT CARLOS SALINAS DE GORTARI AND HIS STAFF
GENERALLY HAD KEPT QUIET ABOUT MR CASTELLANOS LAST FRIDAY MR SALINAS
ASKED THE HEAD OF THE NATIONAL HUMAN RIGHTS COMMISSION TO INTERVENE ON
BEHALF OF THE FIVE HOSTAGES HELD BY THE GUERRILLAS UP TO THAT POINT ONE OF
THE FEW TO COME TO MR CASTELLANOS' DEFENSE WAS HUMAN RIGHTS WATCH/AMERICAS
WHICH CALLED SPECIFICALLY FOR THE RELEASE OF THE FORMER GOVERNOR
HOSTAGETAKING IS A VIOLATION OF INTERNATIONALLY RECOGNIZED RULES OF
WARFARE THE GROUP SAYS

CASTELLANOS BELONGS TO A POLITICAL CLASS THAT HAS BEEN CONDEMNED BY
SALINAS SAYS FEDERICO REYES HEROLES THE EDITOR OF A MAGAZINE ON MEXICAN
POLITICS

GABRIEL GUERRA CASTELLANOS PRESIDENT SALINAS'S PRESS SPOKESMAN FOR FOREIGN
MEDIA IS A COUSIN OF THE KIDNAPPED FORMER GOVERNOR OF HIS RELATIVE HE
OFFERS ONLY THAT HE WAS VERY CONTROVERSIAL 9401170161 940117
INTERNATIONAL BRITISH AEROSPACE TO CUT JOBS

LONDON BRITISH AEROSPACE PLC THE UK ENGINEERING AND AVIATION GROUP
SAID 580 JOBS WOULD BE CUT AT ITS AVRO INTERNATIONAL DIVISION IN 1994

THE COMPANY SAID THAT THE AVRO REGIONALJETS BUSINESS IS STILL UNDERGOING
REORGANIZATION AND THAT THE JOB LOSSES ARE A RESULT OF THIS THE
INTERNATIONAL MARKETPLACE FOR JETS CONTINUES TO BE IN RECESSION BRITISH
AEROSPACE SAID 9401170160 940117 POLITICS & POLICY CLINTONS MADE
PROFIT IN SERIES OF LAND SALES MAGAZINE REPORT SAYS

WASHINGTON THE PRICE OF A PARCEL OF LAND RELATED TO THE WHITEWATER
CONTROVERSY ROSE ALMOST 172 IN A LITTLE MORE THAN A YEAR THANKS TO A
SERIES OF SALES INCLUDING ONE IN WHICH BILL CLINTON AND HIS BUSINESS
PARTNERS SOLD THE PROPERTY TO THE COMPANY THEY CONTROLLED TIME MAGAZINE
REPORTS

TIME SAID IT WAS UNABLE TO OBTAIN THE CLINTONS' 1979 INCOMETAX RETURN TO
LEARN WHETHER THE COUPLE PAID CAPITALGAINS TAXES ON WHAT APPEARS TO BE A
PAPER PROFIT ON THEIR SALE OF THE LAND TO WHITEWATER DEVELOPMENT CO A WHITE
HOUSE SPOKESWOMAN SAID SHE COULDN'T COMMENT ON THE TIME REPORT SAYING ALL
WHITEWATER MATTERS ARE BEING EXAMINED BY THE JUSTICE DEPARTMENT AND WILL
SOON BE THE PURVIEW OF A SPECIAL COUNSEL

CITING DEED RECORDS ON FILE IN MARION COUNTY ARK THE MAGAZINE TRACED THE
WHITEWATER ACREAGE FROM ITS ORIGINAL SALE AS PART OF A 3600ACRE TRACT SOLD
BY ARKLA LAND CO IN JULY 1978 TO A COMPANY CALLED 101 RIVER DEVELOPMENT
INC THE SALE PRICE WAS ABOUT 400 AN ACRE

IN EARLY AUGUST 1978 ACCORDING TO TIME BILL AND HILLARY RODHAM CLINTON AND
THEIR PARTNERS JAMES AND SUSAN MCDOUGAL PURCHASED A 230ACRE PARCEL FROM
101 RIVER DEVELOPMENT FOR 203000 OR ABOUT 882 AN ACRE THAT PARCEL WAS
SOLD IN LATE SEPTEMBER 1979 TO WHITEWATER DEVELOPMENT THE COMPANY NEWLY
FORMED BY THE CLINTONS AND MCDOUGALS

THE TRANSFER FROM THE CLINTONS' AND MCDOUGALS' INDIVIDUAL OWNERSHIP TO THEIR
CORPORATE OWNERSHIP WAS ACCOMPLISHED AT 250000 OR ABOUT 1087 AN ACRE
ACCORDING TO TIME THE PRESIDENT OF THE BANK THAT PROVIDED A LOAN TO
WHITEWATER FOR THAT PURCHASE JAMES PATTERSON JR OF CITZENS BANK & TRUST
IN FLIPPIN ARK SAID THE FINAL PERACRE PRICE WAS HIGHER THAN THE
ORIGINAL BECAUSE THE PROPERTY HAD A LARGE AMOUNT OF RIVER FRONTAGE
9401170159 940117 BUSINESS BRIEF UHAUL RAISES BID TO 3575 MILLION 
FOR PARTNERSHIPS WITH STORAGE CENTERS

PHOENIX UHAUL INTERNATIONAL INC HEATING UP A BIDDING WAR SAID IT
INCREASED ITS CASH OFFER TO 3575 MILLION FROM 3095 MILLION FOR
PARTNERSHIPS THAT OWN 139 SELFSERVICE STORAGE CENTERS

THE PRIVATELY HELD TRUCK AND TRAILER RENTAL COMPANY WHICH HAS ITS OWN
SELFSERVE STORAGE BUSINESS IS COMPETING WITH A PROPOSAL BY SHURGARD INC
A CLOSELY HELD SEATTLE FIRM THAT OPERATES THE CENTERS UNDER MANAGEMENT
AGREEMENTS WITH THE PARTNERSHIPS SHURGARD'S PLAN WOULD CONSOLIDATE OR
ROLL UP THE PARTNERSHIPS AND CONVERT THEM INTO A PUBLICLY TRADED
REALESTATE INVESTMENT TRUST

OUR RESEARCH INDICATED THE SHURGARD LIMITED PARTNERS WANT THEIR ORIGINAL
INVESTMENT BACK SAID HARRY DESHONG UHAUL EXECUTIVE VICE PRESIDENT IN
ADDITION TO THE INCREASED CASH OFFER UHAUL OFFERED AS OPTIONS TWO
ANNUITIES STRUCTURED THROUGH TRANSAMERICA OCCIDENTAL LIFE INSURANCE CO
THAT THE COMPANY SAID WOULD RETURN TO THE PARTNERSHIPS' HOLDERS THEIR
ORIGINAL COST OR HIGHER RETURNS WITHIN CERTAIN TIME FRAMES

THE PROSPECTUS FOR SHURGARD'S PROPOSAL VALUES THE ASSETS OF THE PARTNERSHIP
AT 3874 MILLION STILL ABOVE THE REVISED UHAUL BID RATHER THAN CASH
SHURGARD'S PROPOSAL GIVES INVESTORS THE CHOICE OF STOCK IN THE NEW REIT OR
NOTES THAT MATURE IN 2000

IF UHAUL SUCCEEDS SHURGARD LIKELY WOULD FACE THE LOSS OF FEES FROM ITS
CONTRACTS TO MANAGE THE PARTNERSHIPS SHURGARD'S CONTROLLING SHAREHOLDER AND
CHIEF EXECUTIVE OFFICER CHARLES K BARBO IS A GENERAL PARTNER OF ALL THE
PARTNERSHIPS LAST MONTH THE GENERAL PARTNERS SUED IN FEDERAL COURT IN
SEATTLE TO BLOCK UHAUL'S OFFER AND UHAUL SUED THE GENERAL PARTNERS
ALLEGING THAT THEY ATTEMPTED TO IMPROPERLY AMEND THE PARTNERSHIP AGREEMENTS
TO MAKE IT HARDER TO REMOVE THE GENERAL PARTNERS

FRIDAY THE GENERAL PARTNERS SAID THEY WERE REVIEWING UHAUL'S INCREASED
OFFER WHICH EXPIRES JAN 28 LATE LAST MONTH THE GENERAL PARTNERS ALSO
REJECTED A 136 MILLION BID BY ANOTHER COMPANY STORAGE EQUITIES INC OF
GLENDALE CALIF FOR ASSETS OF SEVEN OUT OF THE 17 PARTNERSHIPS ACCORDING
TO A SHURGARD PROSPECTUS STORAGE EQUITIES HAS EXPRESSED INTEREST IN
INCREASING ITS OFFER BUT HADN'T DONE SO AS OF FRIDAY 9401170158 940117
WHO'S NEWS MONSANTO CO

MONSANTO CO ST LOUIS STEVEN L ENGELBERG PARTNER IN CHARGE OF THE
WASHINGTON OFFICE OF THE KECK MAHIN & CATE LAW FIRM WAS NAMED TO THE NEW
POST OF VICE PRESIDENT WORLDWIDE GOVERNMENT AFFAIRS OF THIS CHEMICAL
COMPANY HE IS 51 YEARS OLD 9401170157 940117 AMCOR UNIT TO ACQUIRE
WESTRA

MONTREAL TWINPAK INC A UNIT OF AMCOR LTD OF AUSTRALIA SAID IT AGREED
IN PRINCIPLE TO BUY THE ASSETS OF WESTRA PLASTICS INC A PLASTICBOTTLE
MAKER IN PLATTSBURGH NY TERMS OF THE PACT WEREN'T DISCLOSED

A TWINPAK SPOKESMAN SAID CLOSELY HELD WESTRA HAS ABOUT 50 EMPLOYEES AND
SALES OF BETWEEN 2 MILLION AND 10 MILLION TWINPAK SAID THE PLATTSBURGH
PLANT WILL BE ITS FIRST IN THE US 9401170156 940117 PIEDMONT NATURAL
UNIT MERGES

CHARLOTTE NC PIEDMONT NATURAL GAS CO SAID ITS PIEDMONT ENERGY
SERVICES CO UNIT MERGED WITH GMI ENERGY INC AND COMMERCIAL NATURAL GAS
INC TO FORM RESOURCE ENERGY SERVICES CO

THE COMPANY SAID RESOURCE ENERGY WILL ACQUIRE TRANSPORT AND STORE NATURAL
GAS FOR INDUSTRIAL ENERGY USERS

GMI ENERGY AND COMMERCIAL NATURAL GAS ARE HOUSTONBASED ENERGY MARKETING
COMPANIES PIEDMONT NATURAL SAID 9401170155 940117 BUNNY FANS MAY PREFER
THIS SPOT BUT WHAT ABOUT THE DOG LOVERS  BY LARRY M GREENBERG 
STAFF REPORTER OF THE WALL STREET JOURNAL

TORONTO IN US TELEVISION ADS THE ENERGIZER BUNNY IS THREATENED BY THE
FICTIONAL LIKES OF KING KONG AND ERNST BLOFELD THE EVIL GENIUS OF JAMES
BOND SPY NOVEL FAME

CANADIAN COMMERCIALS MENACE THE MECHANICAL HARE WITH SOMETHING THAT'S REALLY
DANGEROUS THE COUNTRY'S AWFUL WINTER

THE US KILL THE BUNNY ADS DIDN'T GO OVER WELL IN CANADA SAYS BRENT
PULFORD A CANADIAN AD EXECUTIVE AT BACKER SPEILVOGEL BATES SO ENERGIZER'S
CANADIAN MARKETING TEAM SLOGGED UP TO CHURCHILL MANITOBA KNOWN AS THE
POLAR BEAR CAPITAL OF THE WORLD TO SHOOT AN AD THAT WOULD HAVE MORE APPEAL

THE CANADIAN SPOT WHICH BEGAN AIRING IN CANADA LAST MONTH FEATURES THE
DRUMTHUMPING COTTONTAIL VYING WITH A DOGSLED TEAM IN A RACE ACROSS THE
FROZEN TUNDRA NO PRIZES FOR GUESSING THE WINNER

PRODUCTION TEAM MEMBERS SAY THE WEATHER WAS BRUTAL DURING THE SHOOT THE
TEMPERATURE HOVERED NEAR 30 DEGREES BELOW ZERO WITH THE WIND CHILL MAKING
IT FEEL LIKE MINUS 90 CAMERAS HAD TO BE WRAPPED IN ELECTRIC BLANKETS TO
KEEP THEM FROM SEIZING UP

THE ENERGIZER BUNNY GOT STAR TREATMENT THE CREATURES COST A COOL 70000
EACH SO ENERGIZER WAS LOATH TO SEE ONE FROSTBITTEN THE BUNNY HAD HIS OWN
TRUCK WHERE ALL HIS GEAR IS IN BETWEEN TAKES HE WAS RUSHED BACK TO THE
TRUCK TO KEEP WARM SAYS MR PULFORD WHO WROTE THE SPOT

TWO HANDLERS LOOKED AFTER THE HARE WHILE THE COMMERCIAL WAS BEING FILMED
THEY PUT HIM TOGETHER FOR SHOOTS THE BUNNY'S HEAD COMES OFF WHEN HE'S NOT
ON A JOB BRUSHED HIS FUR AND KEPT HIS BATTERIES CHARGED NO THE BUNNY
DOESN'T RUN ON ENERGIZER FLASHLIGHT BATTERIES AS THE ADS IMPLY BUT THE
COMPANY SAYS IT DOES MAKE THE BATTERY PACK THAT POWERS THE CREATURE'S
MOTOR

TRUE TO THE ENERGIZER HYPE THE BUNNY KEPT GOING LITTLE WONDER WITH ALL
HIS INTERNAL MECHANISMS THE BUNNY WEIGHS IN AT 40 POUNDS AND STANDS NEARLY
2 1/2 FEET TALL HE RUNS BY REMOTE CONTROL ON A TRACK LIKE A TANK WHEN THE
WINDS PEAKED ON THE THIRD AND FINAL DAY OF THE SHOOT EVERYTHING ELSE WAS
BLOWING DOWN EXCEPT THE RABBIT MR PULFORD SAYS

PS THE BUNNY DIDN'T JUST CROSS THE FINISH LINE FIRST IN THE CANADIAN
COMMERCIAL HE ARRIVED TOWING THE SLED WITH THE POOPED CANINES STRETCHED OUT
ON TOP 9401170154 940117 POSTAL SERVICE SNUBS US BANKNOTE IN CONTRACT
AWARDS FOR STAMP PRINTING  BY DAVE KANSAS STAFF REPORTER OF THE
WALL STREET JOURNAL

NEW YORK THE LATEST ROUND OF BIDDING FOR US POSTAL SERVICE POSTAGE
STAMP PRINTING CONTRACTS HAS SHAKEN UP THE SECURITY PRINTING INDUSTRY
PARTICULARLY NORTH AMERICA'S LARGEST PRIVATE SECURITY PRINTING COMPANY US
BANKNOTE CORP

THE POSTAL SERVICE BIDDING BATTLE LEFT US BANKNOTE WHICH HAS MORE THAN
200 MILLION IN ANNUAL REVENUE IN AN UNFAMILIAR POSITION LEFT OUT AFTER
WORKING WITH THE POSTAL SERVICE FOR THE PAST SEVERAL YEARS US BANKNOTE
RECEIVED NO ORDERS IN THE RECENT ROUND OF CONTRACTS VALUED AT AS MUCH AS
330 MILLION OVER FIVE YEARS

INSTEAD THE POSTAL SERVICE GAVE POSTAGESTAMP PRINTING CONTRACTS TO BANKNOTE
CORP OF AMERICA NEW YORK FOR 1167 MILLION STAMP VENTURES CENTREVILLE
VA 746 MILLION ASHTON POTTER AMHERST NY 1257 MILLION AND AVERY
DENNISON CORP CLINTON SC 14 MILLION ASHTON POTTER IS A UNIT OF MDC
CORP TORONTO AND BANKNOTE CORP OF AMERICA IS A UNIT OF FRANCOISCHARLES
OBERTHUR GROUP PARIS ALL OF THE AWARDS REPRESENT THREEYEAR CONTRACTS WITH
TWO ONEYEAR OPTIONS

WITH MORE THAN 30 OF THE POSTAL SERVICE'S STAMPS NOW PRINTED IN THE PRIVATE
SECTOR POSTAGE STAMP CONTRACTS ARE CONSIDERED AN IMPORTANT SOURCE OF
REVENUE FOR DOMESTIC SECURITY PRINTING FIRMS AND TECHNOLOGICAL ADVANCES
SUCH AS SELFADHESIVE STAMPS COUPLED WITH THE GROWING COMPLEXITY OF
PRINTING STAMPS IN SPECIFIC FORMATS ARE LIKELY TO FORCE THE POSTAL SERVICE
TO RELY EVEN MORE HEAVILY ON THE PRIVATE SECTOR IN THE FUTURE THE BULK OF
US STAMPS ARE STILL PRINTED BY THE BUREAU OF PRINTING AND ENGRAVING

US BANKNOTE WHICH HAD BEEN DOING ABOUT 24 MILLION A YEAR OF WORK FOR THE
POSTAL SERVICE BEFORE THE RECENT ROUND OF AWARDS SAID THE LOST REVENUE
WOULD TRIM PERSHARE EARNINGS BY ABOUT 15 CENTS IN 1994 THE COMPANY WHICH
BID FOR THE POSTAL SERVICE CONTRACT THROUGH ITS AMERICAN BANKNOTE UNIT SAID
IT WOULD FOCUS ON ITS GROWING INTERNATIONAL BUSINESS

SINCE THE AWARDS US BANKNOTE STOCK HAS SUNK THE SHARES WHICH TRADED AS
HIGH AS 6375 JUST BEFORE THE POSTAL SERVICE ANNOUNCEMENT WERE QUOTED AT
425 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY

REPRESENTATIVES OF THE POSTAL SERVICE DEFENDED THE CONTRACT PROCUREMENT
PROCESS THE AGENCY TOOK BIDS ON EIGHT PRODUCT LINES AND WE HAD COMPETITION
FOR ALL OF THOSE ITEMS SAID DAVID PAGE CONTRACT OFFICER FOR THE POSTAL
SERVICE AND THEY US BANKNOTE JUST WEREN'T A BEST VALUE OFFERER IN ANY OF
THOSE ITEMS THEIR PRICE WAS TOO HIGH OR THEY PERFORMED TOO POORLY IN
TECHNICAL EVALUATIONS IT'S REALLY JUST THAT SIMPLE

US BANKNOTE SAYING IT WAS DEEPLY DISAPPOINTED BY THE POSTAL SERVICE'S
AWARD PLANS TO FILE A FORMAL APPEAL THE COMPANY ALSO EXPRESSED SOME
SKEPTICISM ABOUT ITS SMALLER COMPETITORS

SMALL MAY BE BEAUTIFUL BUT THIS IS A REAL TASK AHEAD OF THEM SAID A US
BANKNOTE SPOKESMAN THEY HAVE DONE VERY MINIMAL AMOUNTS OF SECURITY
PRINTING WORK COMPARED TO US AND NOW THEY ARE BEING ASKED TO DO THINGS THEY
HAVEN'T DONE BEFORE

THE POSTAL SERVICE DISMISSED US BANKNOTE'S COMPLAINTS SAYING THAT IT
FULLY ANALYZED ALL BIDDERS AND IS CONFIDENT THAT NONE OF ITS CONTRACTORS
WILL HAVE TROUBLE FULFILLING ORDERS IT'S NOT EASY FOR ME TO SEE A COMPANY
LOSE THIS KIND OF BUSINESS SAID MR PAGE IT WOULD HAVE BEEN NICE IF THEY
COULD HAVE SCORED BETTER TECHNICALLY OR OFFERED A LOWER PRICE

THE OMISSION OF US BANKNOTE FROM THE POSTAL SERVICE'S PRIVATESECTOR
SUPPLIERS STRUCK EVEN SOME OF THE WINNERS AS ODD I WAS SOMEWHAT SURPRISED
MYSELF OF THE RESULTS OF THE BIDDING SAID MARTIN FERENCZI PRESIDENT OF
BANKNOTE CORP OF AMERICA

MR FERENCZI SAID HIS COMPANY HAS A INTENSIVE CAPITALEXPENDITURE PROGRAM
UNDER WAY TO MEET THE ADDED DEMAND THE COMPANY HOWEVER SAID IT WOULD NOT
NEED TO ADD TO ITS 93000SQUAREFOOT FACILITY IN ROCKLAND COUNTY NY TO
MEET THE REQUIREMENTS OF THE NEW STAMP CONTRACT IT'S CURRENTLY
UNDERUTILIZED HE SAID

TO RECEIVE APPROVAL FOR ITS 1990 MERGER WITH INTERNATIONAL BANKNOTE CO
US BANKNOTE SOLD ONE OF ITS PRINTING FACILITIES TO BANKNOTE CORP OF
AMERICA AND GUARANTEED THE COMPANY THREE YEARS OF BUSINESS BANKNOTE CORP
OF AMERICA WAS SUBSEQUENTLY BOUGHT BY THE FRENCH COMPANY 9401170153
940117 TECHNOLOGY TWO MEDIA CONCERNS ORACLE CORP TO WORK ON
ELECTRONIC SERVICES

REDWOOD CITY CALIF CAPITAL CITIES/ABC INC AND WASHINGTON POST CO SAID
THEY WILL WORK WITH ORACLE CORP TO DEVELOP ELECTRONIC SERVICES THAT INCLUDE
NEWS ON DEMAND

THE TWO MEDIA COMPANIES PLAN TO DEVELOP THE SERVICES USING ORACLE DATABASE
SOFTWARE THAT ALLOWS LARGE COMPUTERS TO STORE AND RETRIEVE STILL PICTURES
VIDEO AND SOUND AS WELL AS TEXT THEY DIDN'T DISCLOSE A TIMETABLE FOR
INTRODUCING THE SERVICES BUT SAID THEY HOPE TO PARTICIPATE IN INTERACTIVE
TV TRIALS PLANNED THIS YEAR FOR SEVERAL CITIES

CAPITAL CITIES/ABC WHOSE PROPERTIES INCLUDE ABC TELEVISION AS WELL AS
NEWSPAPERS AND RADIO STATIONS PLANS TO COMBINE VIDEO FOOTAGE AND TEXT
INFORMATION TO CREATE NEWS SERVICES THAT CAN BE CUSTOMIZED FOR EXAMPLE A
VIEWER WATCHING A NIGHTLY NEWS BROADCAST ON BOSNIA MIGHT USE HER TV REMOTE
CONTROL TO CALL UP RELATED NEWS FOOTAGE TEXT AND MAPS THAT WOULD HELP
EXPLAIN THE CONFLICT SAID BRUCE MAGGIN EXECUTIVE VICE PRESIDENT IN CHARGE
OF THE NEW YORKBASED COMPANY'S MULTIMEDIA GROUP

SIMILARLY WASHINGTON POST SAID IT HOPES TO DEVELOP NEW FORMS OF ELECTRONIC
PUBLICATIONS AND ADVERTISING THAT COULD ALLOW USERS TO PICK AND CHOOSE
INFORMATION THEY RECEIVE IT HAS AGREED TO WORK WITH ORACLE TO MARKET
WHATEVER SERVICES ARE DEVELOPED DONALD BRAZEAL EDITOR AND PUBLISHER OF A
NEW MULTIMEDIA SUBSIDIARY CALLED DIGITAL INK SAID TEXT AND VISUAL MATERIAL
WILL COME FROM ITS FLAGSHIP NEWSPAPER NEWSWEEK MAGAZINE AND OTHER POST
PROPERTIES AS WELL AS OTHER SOURCES OF VIDEO PROGRAMMING

ORACLE WHICH PLANS A FORMAL ANNOUNCEMENT OF ITS SOCALLED SERVER SOFTWARE
TOMORROW IS AGGRESSIVELY COURTING CUSTOMERS TO DELIVER COMPUTERIZED VIDEO
MUSIC AND OTHER MULTIMEDIA MATERIAL BELL ATLANTIC CORP CHOSE ORACLE'S
SOFTWARE LAST WEEK TO BEGIN DELIVERING INTERACTIVE VIDEO SERVICES OVER
TELEPHONE NETWORKS 9401170152 940117 US IS SAID TO READY CASE 
AGAINST LUCAS  UK DEFENSE GIANT TO FACE CHARGES FOR GEAR USED 
IN THE PERSIAN GULF WAR  BY ANDY PASZTOR STAFF REPORTER OF THE
WALL STREET JOURNAL

FEDERAL PROSECUTORS HAVE DECIDED TO SEEK CRIMINAL CHARGES AGAINST A US
UNIT OF BRITAIN'S LUCAS INDUSTRIES PLC FOR SELLING THE PENTAGON ALLEGEDLY
DEFECTIVE MISSILE HARDWARE THAT FAILED DURING THE PERSIAN GULF WAR
ACCORDING TO INDUSTRY AND LAWENFORCEMENT OFFICIALS

THE BRITISH AEROSPACE AND INDUSTRIAL GIANT ALSO IS THE TARGET OF A SEPARATE
CRIMINAL INVESTIGATION THESE PERSONS SAID FOCUSING ON ALLEGATIONS ITS US
OPERATIONS SOLD THE ARMY THOUSANDS OF SUBSTANDARD HANDHELD RADIOS OVER THE
YEARS THE JUSTICE DEPARTMENT INVESTIGATIONS IN WHICH PROSECUTORS ARE
BELIEVED TO BE SEEKING WELL OVER 20 MILLION IN PENALTIES FROM LUCAS
THREATEN TO DERAIL THE COMPANY'S DRIVE TO SNARE MORE PENTAGON BUSINESS

MORE BROADLY THE PROBES UNDERSCORE A GROWING PROBLEM FACING MAJOR US AND
FOREIGN DEFENSE COMPANIES AS THE INDUSTRY CONSOLIDATES LUCAS ACQUIRED BOTH
OF THE BUSINESSES NOW UNDER INVESTIGATION IN THE LATE 1980S WITH MANY OF
THE QUESTIONABLE PRODUCTION PROCEDURES ALREADY IN PLACE WITH MERGERS AND
ACQUISITIONS AMONG DEFENSE FIRMS ACCELERATING SURVIVING COMPANIES
INCREASINGLY ARE LIKELY TO INHERIT POTENTIAL LEGAL LIABILITIES LIKE THOSE
CONFRONTING LUCAS

ROBERT COHEN A NEW YORK LAWYER REPRESENTING LUCAS DECLINED TO COMMENT AS
DID JUSTICE DEPARTMENT SPOKESMEN BUT OTHERS FAMILIAR WITH THE MATTER SAID
THAT IN THE NEXT FEW WEEKS LUCAS WILL HAVE TO DECIDE WHETHER TO PLEAD
GUILTY UNDER A PLEA BARGAIN OR FACE THE PROSPECT OF BEING INDICTED ON FRAUD
AND OTHER CHARGES

LUCAS AUL INC GARDEN CITY NY MAKES CLASSIFIED MISSILE DEVICES 
CALLED LAUNCH ELECTRONIC UNITS THAT PILOTS RELY ON TO FIRE MISSILES THE
BROOKLYN US ATTORNEY'S OFFICE ACCORDING TO THESE PERSONS RECENTLY TOLD
DEFENSE LAWYERS THAT PROSECUTORS INTEND TO SEEK FALSE TESTING CHARGES
AGAINST THE SUBSIDIARY FOR SHIPPING ALLEGEDLY FAULTY OR INOPERATIVE DEVICES
USED FOR MAVERICK AIRTOGROUND MISSILES CARRIED BY AIR FORCE A10 JETS

THE CRIMINAL PROBE WAS SPARKED MORE THAN TWO YEARS AGO BY SUSPICIONS THAT
FAULTY LAUNCH UNITS WERE RESPONSIBLE FOR AN INCIDENT IN WHICH A MAVERICK
MISSILE FIRED BY AN A10 PILOT MISTAKENLY KILLED SEVEN MARINES ON THE
KUWATISAUDI ARABIAN BORDER DURING THE 1991 WAR WITH IRAQ THOSE INITIAL
ALLEGATIONS LINKING THE LAUNCH UNITS TO THE DEADLIEST SUCH FRIENDLY FIRE
INCIDENT OF THE PERSIAN GULF CONFLICT HAVEN'T BEEN SUBSTANTIATED
LAWENFORCEMENT AND INDUSTRY OFFICIALS SAID

NEVERTHELESS PROSECUTORS AND PENTAGON CRIMINAL AGENTS SOON DISCOVERED THAT
SOME OF THE LUCAS DEVICES DIDN'T OPERATE PROPERLY ACCORDING TO ONE
OFFICIAL SOME UNITS DIDN'T OPERATE AT ALL WHEN PILOTS PUSHED THE FIRE
BUTTON AND INVESTIGATORS UNCOVERED ALLEGEDLY WIDESPREAD TESTING
IRREGULARITIES AT THE NEW YORK PLANT

THE INVESTIGATION WAS FIRST REPORTED IN THE LONG ISLAND NEWSPAPER NEWSDAY IN
AUGUST 1992 AFTER FEDERAL AGENTS RAIDED LUCAS AUL'S FACILITIES BUT THE
JUSTICE DEPARTMENT'S DECISION TO PROCEED WITH CHARGES HADN'T BEEN KNOWN

THE SEPARATE INVESTIGATION INVOLVING COMMUNICATIONS GEAR SUPPLIED BY LUCAS
WHICH NEITHER THE COMPANY NOR THE GOVERNMENT HAS DISCLOSED ISN'T BELIEVED
TO BE AS FAR ALONG IN THAT CASE FEDERAL PROSECUTORS CONTEND THAT A
HAZLETON PA FIRM WHOSE RADIO BUSINESS LUCAS ACQUIRED IN 1989
SYSTEMATICALLY USED SMALLER AMOUNTS OF CORROSIONRESISTANT GOLD OR OTHER
PRECIOUS METALS THAN REQUIRED IN ASSEMBLING MILITARY RADIOS

WITH WORLDWIDE REVENUE OF NEARLY 5 BILLION LUCAS HAS INCREASED ITS US
AEROSPACE SALES MORE THAN 10FOLD SINCE 1987 LARGELY THROUGH A STRATEGY OF
ACQUIRING SMALLER OUTFITS LUCAS AUL AND OTHER UNITS ARE IMPORTANT
SUBCONTRACTORS IN VARIOUS MISSILE AND COMMUNICATIONS PROGRAMS FOR THE NAVY
AND THE ARMY THE PROBES COULD RESULT IN SOME PARTS OF THE COMPANY BEING
BARRED FROM RECEIVING ADDITIONAL GOVERNMENT CONTRACTS 9401170151 940117
CLOSED END FUNDS

CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN
SECURITIES UNLIKE OPENENDED FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR
SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND
SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER
ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN
C CHICAGO NNYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN
EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS
CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE
DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR
DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED
ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE
PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET
PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE
EX DIVIDEND B THE NAV IS FULLY DILUTEDC NAV MARKET PRICE AND PREMIUM OR
DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR
DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS
FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV
AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO
UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT
THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE
OR NOT APPLICABLE 9401170150 940117 MUTUAL FUNDS A PRIMER ON QUESTIONS
SURROUNDING PERSONAL TRADING BY FUND MANAGERS  BY ROBERT MCGOUGH 
STAFF REPORTER OF THE WALL STREET JOURNAL

ALL OF A SUDDEN THE MUTUALFUND INDUSTRY IS REELING OVER PERSONAL STOCK
TRADING BY FUND MANAGERS WHAT'S ALLOWED AND WHAT'S NOT HERE ARE ANSWERS
TO SOME QUESTIONS ON INVESTORS' MINDS

IS IT LEGAL FOR FUND MANAGERS TO TRADE STOCKS FOR THEIR OWN ACCOUNT

YES AS LONG AS THEY DON'T VIOLATE FEDERAL RULES AGAINST INSIDER TRADING OR
ENRICH THEMSELVES AT FUND HOLDERS' EXPENSE

HOW LONG HAS SUCH TRADING GONE ON

FOR YEARS BUT THE ISSUE EXPLODED INTO PUBLIC CONSCIOUSNESS ONLY AFTER
INVESCO FUNDS GROUP FIRED SUCCESSFUL MUTUALFUND MANAGER JOHN KAWESKE JAN 4
FOR ALLEGEDLY FAILING TO REPORT 10 TO 20 PERSONAL TRADES THE FIRING DREW
MORE SCRUTINY THAN IT MIGHT HAVE AT A PENSION FUND BECAUSE MUTUAL FUNDS ARE
THE SMALL INVESTOR'S DOMAIN

WHY DO MANAGERS TRADE STOCKS AT ALL WHEN THEY COULD JUST BUY MUTUAL FUNDS

YOU COULD WORK FOR A FUND GROUP THAT DIDN'T HAVE A FUND THAT MET YOUR
INVESTMENT OBJECTIVES SAYS JON FOSSEL PRESIDENT OF OPPENHEIMER MANAGEMENT
CORP OTHERS SAY EGO PLAYS A ROLE SOME MANAGERS BRAG ABOUT THEIR TRADING
PROWESS

WHY DON'T FUND COMPANIES JUST BAN PERSONAL TRADING

YOU'RE USUALLY DEALING WITH VERY TALENTED MONEY MANAGERS SAYS ROY ADAMS
A LAWYER AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO YOU MAY
HAVE TROUBLE HOLDING ON TO THEM IF YOU RESTRICT THEM UNDULY

ARE THERE ANY BENEFITS FOR FUND SHAREHOLDERS

TRACY GORDON A SPOKESWOMAN FOR FIDELITY INVESTMENTS BOSTON SAYS WE
STRONGLY BELIEVE THAT ALLOWING OUR MANAGERS TO TRADE INDIVIDUAL STOCKS
SHARPENS THEIR SKILLS EDUCATES THEM ABOUT THE MARKETS AND ULTIMATELY
PRODUCES EVEN BETTER PERFORMANCE FOR OUR SHAREHOLDERS

WHY HAS FIDELITY CAUGHT THE SECURITIES AND EXCHANGE COMMISSION'S EYE

FIDELITY MANAGERS' TRADES ARE BEING EXAMINED BY THE SEC BECAUSE FIDELITY IS
THE BIGGEST FUND COMPANY AND BECAUSE OF ITS UNUSUAL CORPORATE CULTURE
FIDELITY CULTIVATES A CLIMATE OF NEAROBSESSION WITH STOCK MARKETS
STOCKPICKING AND PERFORMANCE AND IT ENCOURAGES STOCK TRADING BY ITS
ANALYSTS AND FUND MANAGERS

WHAT STEPS IS FIDELITY TAKING

FIDELITY TIGHTENED ITS RULES ON PERSONAL TRADES IN NOVEMBER A MOVE THAT THE
FIRM SAID WASN'T RELATED TO ANY IMPROPER OR SUSPECT TRADING MOST MANAGERS
SEEM TO ACCEPT THE NEW RULES ALBEIT WITH SOME BEEFING LAWRENCE D
GREENBERG MANAGER OF FIDELITY EMERGING GROWTH FUND IS SAID BY FIDELITY
INSIDERS TO HAVE PUBLICLY OBJECTED IN A MEETING AT THE TIME THAT THE RULE
CHANGES INFRINGED ON INDIVIDUAL RIGHTS FIDELITY WON'T COMMENT ON THAT AND
MR GREENBERG DIDN'T RETURN CALLS

HOW IS MORALE AT FIDELITY

SOME MANAGERS WHO DON'T WANT TO BE IDENTIFIED ARE UPSET THAT ACTIONS BY
ANYONE AT THE FIRM MIGHT THREATEN FIDELITY'S REPUTATION SOME FEAR THE FREE
FLOW OF INFORMATION AT FIDELITY MAY BE HINDERED A FEW WONDER IF SOME
FIDELITY MANAGERS ESPECIALLY YOUNGER ONES MAY HAVE BENEFITED BY BUYING
STOCKS FOR THEMSELVES TALKING UP THE STOCKS AROUND THE OFFICE WATER COOLER
AND THEN SELLING PERSONAL HOLDINGS AFTER OTHER FIDELITY FUNDS HAD BOUGHT THE
STOCKS WHICH CAN PUSH UP PRICES PEOPLE WHO HAVE HEARD SUCH TALK WITHIN
FIDELITY SAY THESE FUND MANAGERS MAY HAVE ERRED UNWITTINGLY

HOW MIGHT FUND MANAGERS TAKE UNFAIR ADVANTAGE OF THEIR STATUS

ONE WAY WOULD BE TO BUY A STOCK FOR A PERSONAL ACCOUNT SHORTLY BEFORE A FUND
DIRECTS A TORRENT OF BUY ORDERS AT THE STOCK AND DRIVES UP ITS PRICE THE
MANAGER COULD SELL AT A QUICK PROFIT AN ILLEGAL PRACTICE CALLED
FRONTRUNNING ANOTHER ILLEGALITY IS ACCEPTING COMPENSATION IN RETURN FOR
BUYING A PARTICULAR STOCK FOR A FUND

HOW IS TRADING MONITORED

FUND COMPANIES ARE REQUIRED TO HAVE A SYSTEM AT SOME CODES OF ETHICS
REQUIRE MOREFREQUENT CONFIRMATIONS OF MANAGER TRADES THAN THE QUARTERLY
REPORTING THE SEC MANDATES SOME REQUIRE PORTFOLIO MANAGERS TO GET PRIOR
APPROVAL FOR TRADES OTHERS PRINT RESTRICTED LISTS OF STOCKS THAT CAN'T BE
BOUGHT OR SOLD BECAUSE FUNDS ARE TRADING IN THEM OR INSIST THAT A
PERSONAL TRADE CAN'T OCCUR WITHIN A CERTAIN NUMBER OF DAYS OF A FUND'S
TRADE

WHAT'S AT STAKE FOR THE FUND INDUSTRY HERE

ITS STERLING REPUTATION SEC COMMISSIONER J CARTER BEESE JR POINTS OUT
THAT UNLIKE BANKS WHICH HAVE DEPOSIT INSURANCE MUTUAL FUNDS HAVE NO
FEDERAL SAFETY NET  THE ENTIRE MUTUALFUND INDUSTRY DEPENDS ON THE
TRUST AND CONFIDENCE OF THE INVESTING PUBLIC 9401170149 940117 AT&T TO
TAKE SPECIAL CHARGE OF 13 BILLION  COMPANY SEPARATELY PLANS 
TO TRIM UNIT'S STAFF BY UP TO 1500 POSTS  BY JOHN J KELLER 
STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL TAKE A 13
BILLION CHARGE TO COMPLY WITH NEW ACCOUNTING RULES AND COMPANY INSIDERS
SAID THE TELECOMMUNICATIONS GIANT WILL CUT AS MANY AS 1500 JOBS IN ITS
INTERNAL COMPUTEROPERATIONS UNIT

AN AT&T SPOKESMAN WHILE CONFIRMING THAT CUTS WERE PLANNED AT ITS
INFORMATION MANAGEMENT SERVICES UNIT DECLINED TO SPECIFY HOW MANY YOU
COULD SAY IT WILL BE SUBSTANTIAL HE SAID

THE CHARGE AGAINST FOURTHQUARTER EARNINGS ANNOUNCED ON FRIDAY WILL AMOUNT
TO 21 BILLION BEFORE TAXES AT&T SAID AND REFLECTS NEW ACCOUNTING RULES
ON POSTEMPLOYMENT BENEFITS AND PAYMENTS ON AN AFTERTAX PERSHARE BASIS
THE CHARGE WILL BE 96 CENTS THE COSTS OF THE JOB CUTS AREN'T INCLUDED IN
THE CHARGE

EXCLUDING THE CHARGE EARNINGS WOULD HAVE BEEN ABOUT 115 BILLION OR 85
CENTS A SHARE FOR THE FOURTH QUARTER IN LINE WITH ANALYSTS' EXPECTATIONS
AT&T SAID THE COMPANY WILL REPORT ITS FOURTHQUARTER RESULTS BY THE END OF
JANUARY

ALL COMPANIES ARE REQUIRED TO ADOPT THE NEW ACCOUNTING RULE KNOWN AS
FINANCIAL ACCOUNTING STANDARD 112 BY THEIR FISCAL 1994 FIRST QUARTER IT
REQUIRES THAT EMPLOYERS ACCRUE FOR THE ESTIMATED COSTS OF BENEFITS SUCH AS
WORKERS' COMPENSATION AND DISABILITY BENEFITS PROVIDED TO FORMER OR
INACTIVE EMPLOYEES WHO AREN'T ELIGIBLE FOR RETIREMENT

IN AT&T'S CASE ABOUT 11 BILLION OF THE AFTERTAX CHARGE REFLECTS
ACCUMULATED LIABILITIES IN 1992 AND PRIOR YEARS AN ADDITIONAL 200 MILLION
COVERS 1993 GOING FORWARD WE EXPECT ON AVERAGE THAT WE WILL HAVE TO BOOK
EXPENSES OF ABOUT 200 MILLION A YEAR BASED ON THE NEW RULE AN AT&T
SPOKESMAN SAID

BUT AT&T SAID THE 200 MILLION IN ADDITIONAL ANNUAL EXPENSES WON'T HAMPER
ITS GOAL TO SHOW AT LEAST 10 EARNINGS GROWTH ANNUALLY

AT&T SAID ITS RESULTS ALSO WILL REFLECT CHARGES OF ABOUT 120 MILLION FOR
PREVIOUSLY ANNOUNCED RESTRUCTURING AND WORKFORCE REDUCTIONS AT ITS COMPUTER
SUBSIDIARY NCR CORP

THE CHANGE IN ACCOUNTING IS A NONEVENT SAID STEVEN R YANIS AN ANALYST
AT KIDDER PEABODY & CO A LOT OF COMPANIES ARE DOING THIS U S WEST INC
FOR EXAMPLE RECENTLY SAID IT WOULD SHOW A LOSS FOR 1993 AFTER TAKING A 18
BILLION CHARGE IN PART TO COMPLY WITH THE NEW ACCOUNTING RULE

THE CUTS OF BETWEEN 1200 AND 1500 JOBS AT AT&T IMS WHICH EMPLOYS ABOUT
8000 WORKERS WAS DISCLOSED IN A NOV 18 INTERNAL AT&T MEMO OBTAINED BY THE
WALL STREET JOURNAL IT INFORMED EMPLOYEES THAT IMS MANAGERS WERE WORKING
AGRESSIVELY ON PLANS TO DELIVER DRAMATIC IMPROVEMENTS IN OUR COST STRUCTURE
QUALITY AND EFFICIENCY IN 1994

THE NOTICE SENT BY IMS CHIEF RON J PONDER THROUGH AT&T'S ELECTRONIC MAIL
SYSTEM SAID THE UNIT'S RESIZING COULD LEAD TO A SIGNIFICANT NUMBER OF
BOTH MANAGEMENT AND OCCUPATIONAL EMPLOYEES LEAVING IMS/PROFESSIONAL
SERVICES EITHER VOLUNTARILY OR INVOLUNTARILY HE ADDED THAT AT&T IS
ENCOURAGING PEOPLE TO PROACTIVELY PURSUE CAREER OPTIONS AT&T'S SPOKESMAN
SAID THE COMPANY WILL SEND NOTICES TO IMS EMPLOYEES THIS WEEK ABOUT THE
CUTBACKS

MR PONDER ISN'T THE ONLY MANAGER CONTEMPLATING CUTBACKS IN HIS FORCE AS
ALREADY REPORTED AT&T'S GIANT LONGDISTANCE UNIT IS PREPARING THOUSANDS OF
JOB CUTS AS IT RESIZES ITSELF TO COMPETE ON A COSTBASIS WITH LEANER
CARRIERS SUCH AS MCI COMMUNICATIONS CORP

MR SMITH'S COMPANY WORDSMITH COMMUNICATIONS GROUP INC PUBLISHES THE AT&T
ALUMNI DIRECTORY WE'RE ADDING NAMES ALL THE TIME HE SAID 9401170148
940117 INTERNATIONAL FRENCH BUSINESS FAILURES

PARIS THE NUMBER OF FRENCH CORPORATE BANKRUPTCIES LIQUIDATIONS AND LEGAL
SETTLEMENTS ROSE TO 6021 IN NOVEMBER 1993 FROM 4597 IN NOVEMBER 1992
ACCORDING TO SEASONALLY ADJUSTED STATISTICS PUBLISHED BY THE NATIONAL
STATISTICS INSTITUTE

THE INSTITUTE SAID THAT FOR THE 12MONTH PERIOD FROM DECEMBER 1992 THROUGH
NOVEMBER 1993 BUSINESS FAILURES WERE UP 125 FROM THE PRIOR PERIOD
REPRESENTING A FAILURE RATE OF 33 AMONG ALL FRENCH BUSINESSES
9401170147 940117 RYLAND GROUP TO SHIFT FOCUS

COLUMBIA MD RYLAND GROUP INC SAID IT PLANS TO CHANGE ITS FOCUS IN
CALIFORNIA BY BUILDING HOMES TARGETED AT THE ENTRYLEVEL HOME BUYER TO TAKE
ADVANTAGE OF LOW INTEREST RATES

THE HOMEBUILDER WHICH MARKETS UNDER THE BROCK AND LARCHMONT NAMES IN
CALIFORNIA HAS FOCUSED ON MORE EXPENSIVE HOUSING IN THE THIRD QUARTER
RYLAND DECIDED TO TAKE A 40 MILLION RESERVE ON ITS HOMEBUILDING
INVENTORIES IN SOUTHERN CALIFORNIA REFLECTING WITHDRAWAL FROM HIGHEREND
BUILDING WHICH HAS BEEN HIT HARD BY HIGH LAND COSTS 9401170146 940117
ECONOMISTS DISAGREE ON JAPAN'S OUTLOOK  NATIONAL PESSIMISM MEETS 
BULLISHNESS FROM THE WEST  BY MICHAEL WILLIAMS STAFF REPORTER OF
THE WALL STREET JOURNAL

TOKYO THERE'S A WIDENING CULTURAL GAP IN JAPAN THESE DAYS BETWEEN BULLISH
FOREIGN ECONOMISTS AND THEIR PESSIMISTIC JAPANESE COUNTERPARTS

THE DISAGREEMENT OVER THE OUTLOOK FOR JAPAN'S AILING ECONOMY HAS REACHED
REMARKABLE LEVELS PARTICULARLY IN FORECASTS OF CORPORATE PRETAX EARNINGS
FOR THE YEAR THAT STARTS APRIL 1 THE EXPLANATION STEMS FROM A DIFFERING
VIEW OF JAPAN'S RISING JOBLESSNESS AND ITS IMPACT ON CONSUMER SPENDING AND
BUSINESS SALES

SOME WESTERN ANALYSTS WHO HAVE SEEN EARNINGS RECOVER AMID CORPORATE
BLOODLETTING ARE RELATIVELY CONFIDENT ABOUT JAPAN'S SHORTTERM PROSPECTS
THEY SEE CONSUMER SPENDING IMPROVING OR HOLDING STEADY DESPITE JOB CUTS AND
REDUCED OVERTIME AND ARE UPBEAT ABOUT THE PROSPECTS FOR HEALTHIER CORPORATE
BOTTOM LINES

BARING SECURITIES JAPAN LTD ECONOMIST GEOFFREY BARKER SAYS JAPANESE
PRETAX PROFIT MAY REBOUND AS MUCH AS 40 NEXT FISCAL YEAR IF THE US CAN
DO IT IN '92 JAPAN CAN DO IT IN '94 SAYS MR BARKER

THE JAPANESE ON THE WHOLE DISAGREE AND THE DEBATE SAYS A GREAT DEAL ABOUT
THE DIFFERENCES IN MENTALITY AMONG THE TWO GROUPS AMONG THE BIGGEST BEARS
IS INDUSTRIAL BANK OF JAPAN ECONOMIST KOZO KOIDE WHO SEES AN 11 PLUNGE IN
EARNINGS THOUGH JAPANESE COMPANIES LARGELY HAVE AVOIDED LARGESCALE LAYOFFS
AND OTHER JARRING WESTERNSTYLE RESTRUCTURING MOVES MORE WORKERS ARE
CONCERNED ABOUT THEIR JOBS MR KOIDE AND OTHERS BELIEVE IT WILL TAKE SOME
TIME FOR CONSUMER SENTIMENT TO RECOVER IN A LAND WHERE LIFETIME EMPLOYMENT
IS THE IDEAL

THE LABOR SITUATION IS GOING TO WORSEN IN 1994 MAKING IT HARD TO LOOSEN
THE PURSE STRINGS SAYS MR KOIDE JAPAN IS ALL BUT CERTAIN TO SEE A FOURTH
CONSECUTIVE YEAR OF DECLINING PRETAX PROFIT FOR THE YEAR ENDING MARCH 31
MEANWHILE JAPAN'S UNEMPLOYMENT RATE HAS RISEN TO 28 A SIXYEAR HIGH AND
OBSERVERS ON BOTH SIDES BELIEVE THE RATE COULD TOP THE RECORD 31 THIS
CALENDAR YEAR

THE DIFFERING SCHOOLS OF THOUGHT DON'T SPLIT PURELY ALONG ETHNIC LINES ONE
OF THE PESSIMISTS IS LEHMAN BROTHERS ANALYST PAUL SUMMERVILLE WHO EXPECTS
EARNINGS TO FALL BETWEEN 10 AND 15 NEXT FISCAL YEAR AND THE WIDE RANGE IN
FORECASTS IS UNDERSTANDABLE GIVEN THE UNCERTAINTY OVER VARIABLES SUCH AS
THE YENDOLLAR EXCHANGE RATE WHICH SWAYS EXPORTERS' EARNINGS MANY JAPANESE
COMPANIES EXPECT THE RATE TO FLUCTUATE BETWEEN 100 YEN AND 120 YEN TO THE
DOLLAR

BUT MANY ECONOMISTS DO EMPHASIZE THE CULTURAL SPLIT AND NOTE THAT LAST
YEAR THE ROLES LARGELY WERE REVERSED JAPANESE ECONOMISTS PARTICULARLY AT
JAPANESE INSTITUTIONS ON THE WHOLE WERE SLOWER THAN FOREIGN ECONOMISTS TO
FORECAST THE WEAKER GROWTH THAT SINCE HAS PLAGUED THE NATION MOST OF THE
JAPANESE INSTITUTIONS IN THE PAST COUPLE OF YEARS WERE TOO OPTIMISTIC SAYS
DONALD KIMBALL AN AMERICAN ECONOMIST AT MITSUBISHI BANK LTD

THE PESSIMISTS CAN CITE PLENTY OF GRIST FOR THEIR MILL BECAUSE OF THE
WORSENING LABOR SITUATION PEOPLE'S EXPECTED LIFETIME EARNINGS HAVE FALLEN
IN THE LAST YEAR SAYS IBJ'S MR KOIDE WHO HAS BEEN BEARISH FOR SOME TIME
THAT DASHING OF HOPES HE BELIEVES WILL SUPPRESS THE SPURT IN CONSUMER
SPENDING NEEDED TO BUOY CORPORATE SALES HE RECKONS THAT WILL BE THE CASE
EVEN IF JAPAN'S GOVERNMENT SLASHES INCOME TAXES WHICH MANY PEOPLE AND
THE US ADMINISTRATION ARE PUSHING FOR

SOME BEARS NOTE THAT DESPITE THE ANXIETY OVER JOBS JAPANESE COMPANIES
AREN'T CUTTING LABOR COSTS FAST ENOUGH TO WIDEN THEIR MARGINS WHICH HAVE
SHRUNK TO AN 18YEAR LOW OF 14 OF SALES THAT IS BECAUSE MOST BIG JAPANESE
COMPANIES STILL FOLLOW TRADITIONAL LABOR PRACTICES SUCH AS LIFETIME JOBS
AND ANNUAL WAGE INCREASES

SUSUMU KATO ECONOMIST AT CS FIRST BOSTON JAPAN LTD BELIEVES THE COST OF
LABOR WILL GROW 2 OR 3 NEXT FISCAL YEAR OUTWEIGHING LOWER DEPRECIATION
COSTS THAT WILL HELP DRAG DOWN CORPORATE EARNINGS 5 OR MORE HE PREDICTS

SOME WESTERN ANALYSTS IN TOKYO ARGUE THAT THE PESSIMISTS OVEREMPHASIZE THE
LABOR SITUATION IN JAPAN WHERE YOU HAVE A FULLEMPLOYMENT TRADITION IT'S
NOT OBVIOUS THAT YOU CAN HAVE GROWTH WITHOUT FULL EMPLOYMENT SAYS SG
WARBURG STRATEGIST TOM HILL IN MY VIEW RISING UNEMPLOYMENT SHOULD BE
ASSOCIATED WITH RISING PROFIT SINCE JOB LOSS SIGNALS THAT COMPANIES ARE
PARING COSTS

MR HILL PLACES GREATER WEIGHT ON OTHER FACTORS JAPAN'S RECORDLOW INTEREST
RATES HE SAYS PUT MONEY IN CORPORATE COFFERS BY SLASHING INTEREST PAYMENTS
TO CREDITORS THE YEN SHOULD WEAKEN TO 120 OR 125 TO THE DOLLAR HE
BELIEVES A SHIFT THAT WOULD BOOST THE COMPETITIVENESS OF EXPORTERS THE
JAPANESE CURRENCY HAS WEAKENED TO 11173 AGAINST THE DOLLAR SINCE NEARING
PARITY WITH THE PENNY IN AUGUST SO DESPITE WEAK GROSS DOMESTIC PRODUCT
GROWTH OF 1 NEXT BUSINESS YEAR EARNINGS SHOULD ADVANCE 30 HE ARGUES

BARING'S MR BARKER IS EVEN MORE UPBEAT BOOMING MARKETS IN COUNTRIES LIKE
THE US WILL BUTTRESS EXPORTERS' SALES HE SAYS MOREOVER HE SAYS THE
CURRENT PRICE SLASHING IN JAPAN'S NEW DISCOUNT STORES WILL LURE CONSUMERS
INTO SHOPS DESPITE JOB ANXIETIES

WHO'S RIGHT CONSUMER SPENDING HASN'T COLLAPSED SAY THE BULLS DESPITE THE
JUMP IN UNEMPLOYMENT BUT THE BEARS ARGUE THAT THE WORST IS YET TO COME
WE'RE FACING A VERY INTERESTING TEST POINT FOR BOTH CAMPS IN THE COMING
MONTHS SAYS MR HILL

ONE BIG TEST SHOULD COME THIS MONTH WHEN JAPAN'S GOVERNMENT PROMISES TO
DELIVER DETAILS ON NEW MEASURES TO SPUR THE ECONOMY JAPANESE LEADERS HAVE
MISSED DEADLINES FOR ACTION ON THE ECONOMY IN RECENT MONTHS HOWEVER

THE LATEST SIGNALS FROM POLITICIANS SUGGEST LEADERS MAY BE CONSIDERING A
PACKAGE OF ADDITIONAL STIMULATIVE SPENDING FOR THE REMAINDER OF THE FISCAL
YEAR INCLUDING AS MUCH AS FOUR TRILLION YEN 3558 BILLION IN PUBLIC
WORKS BUSINESS LEADERS ALSO ARE AWAITING AN EXPECTED INCOMETAX CUT RECENT
NUMBERS REPORTED IN THE MEDIA PUT ITS SIZE AT AS MUCH AS SEVEN TRILLION YEN
FINANCE MINISTRY OFFICIALS SAY TAXCUT DETAILS HAVEN'T BEEN WORKED OUT
9401170145 940117 SUPERCUTS FOURTHQUARTER SALES

SAN FRANCISCO SUPERCUTS INC SAID SALES AT STORES OPEN A YEAR OR LONGER
GREW MORE THAN 5 IN 1993'S FOURTH QUARTER FULL RESULTS WILL BE ANNOUNCED
IN EARLY MARCH

FOR THE CURRENT YEAR THE HAIRCARE CHAIN SAID IT EXPECTS SALES OVERALL TO
INCREASE 12 TO 15 WHILE IT EXPECTS SALES IN STORES OPEN A YEAR OR MORE TO
INCREASE BY 45 TO 55

SUPERCUTS ALSO SAID IT WILL OPEN 150 STORES THIS YEAR INCLUDING 50 IN
METROPOLITAN NEW YORK 9401170144 940117 WHO'S NEWS DETROIT DIESEL
CORP

DETROIT DIESEL CORP DETROIT JOHN DODDRIDGE VICE CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF MAGNA INTERNATIONAL GARY JACOBS PRESIDENT AND CHIEF
EXECUTIVE OFFICER OF LAREDO NATIONAL BANCSHARES INC AND LAREDO NATIONAL
BANK AND JOSEPH WELCH OWNER AND CHIEF EXECUTIVE OFFICER OF JF WELCH
INTERESTS INC WERE NAMED DIRECTORS OF THIS MAKER OF HEAVYDUTY DIESEL
ENGINES AND ENGINE PARTS INCREASING THE BOARD'S SIZE TO NINE 9401170143
940117 SHOREWOOD BUYS PAPER ASSETS

NEW YORK SHOREWOOD PACKAGING CORP SAID IT COMPLETED ACQUISITION OF THE
ASSETS OF SOMERVILLE PACKAGING'S PREMIUM PACKAGING GROUP FROM CASCADES
PAPERBOARD INTERNATIONAL INC FOR 100 MILLION AND A POSSIBLE CONTINGENT 5
MILLION PAYMENT

SOMERVILLE A MANUFACTURER OF FOLDING CARTONS FOR THE TOBACCO COSMETICS
TOILETRIES AND GENERALCONSUMER INDUSTRIES REPORTED 139 MILLION IN SALES
FOR THE YEAR ENDED AUG 31 SHOREWOOD SAID IT HAD ABOUT 184 MILLION IN
SALES FOR THE YEAR ENDED APRIL 30 9401170142 940117 CREDIT RATINGS

BORDEN INC NEW YORK STANDARD & POOR'S CORP DOWNGRADED THIS FOOD
CONCERN'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS TO REFLECT THE
COMPANY'S WEAK OPERATING PERFORMANCE AND RELATED FINANCIAL DETERIORATION
ABOUT 22 BILLION OF TOTAL DEBT IS OUTSTANDING BORDEN'S COMMERCIALPAPER
RATING WAS AFFIRMED THE COMPANY HAD NO COMMENT S&P SAID BORDEN IS IN A
TRANSITION PERIOD AND RATINGS ARE DEPENDENT UPON THE CREDIBILITY OF THE NEW
MANAGEMENT TEAM IN ACHIEVING ITS STATED 1994 GOALS IT ADDED THE NEGATIVE
RATINGS OUTLOOK REFLECTS THE POTENTIAL THAT BORDEN MAY NOT REACH ITS DESIRED
RESULTS GIVEN THE VERY COMPETITIVE INDUSTRY CONDITIONS S&P DID NOTE
BORDEN'S LATEST RESTRUCTURING PROGRAM ANNOUNCED EARLIER THIS MONTH WHICH
IS EXPECTED TO IMPROVE OVERALL PERFORMANCE

FIRST BANK SYSTEM MINNEAPOLIS MOODY'S INVESTORS SERVICE INC SAID IT
UPGRADED THE LONGTERM DEBT OF THIS BANKING COMPANY AND RAISED
SUBORDINATEDDEBT RATINGS ON OF ONE OF ITS SUBSIDIARIES THE ACTIONS WHICH
MOODY'S ATTRIBUTED TO SUSTAINED IMPROVEMENT IN ASSET QUALITY EARNINGS AND
CAPITAL AFFECTED ABOUT 14 BILLION IN SECURITIES MOODY'S SAID THE
RATING COMPANY RAISED FIRST BANK SYSTEM'S SENIOR DEBT TO SINGLEA2 FROM
SINGLEA3 ITS SUBORDINATED DEBT TO SINGLEA3 FROM BAA1 AND ITS
PREFERRED STOCK TO SINGLEA3 FROM BAA1 IT ALSO UPGRADED THE SUBORDINATED
DEBT OF FIRST BANK NATIONAL ASSOCIATION TO SINGLEA2 FROM SINGLEA3

FIRST FIDELITY BANCORP STANDARD & POOR'S CORP RAISED ITS RATINGS ON
ABOUT 600 MILLION OF LONGTERM DEBT OF THIS HOLDING COMPANY AND ITS FIRST
FIDELITY BANKS INC UNIT INCLUDING UPGRADES OF SUBORDINATE DEBT TO
TRIPLEBPLUS FROM TRIPLEB IT ALSO RAISED THE RATING ON THE HOLDING
COMPANY'S PREFERRED STOCK TO TRIPLEB FROM TRIPLEBMINUS S&P SAID THE
UPGRADES REFLECT THE BANK'S SOLID FINANCIAL CONDITION AND FAVORABLE
OPERATING TRENDS

SHERRITT INC FORD SASKATCHEWAN ALBERTA STANDARD & POOR'S CORP PUT
THE SENIOR UNSECURED DEBT ON THIS FERTILIZER ENERGY AND METALS CONCERN ON
CREDITWATCH WITH NEGATIVE IMPLICATIONS BECAUSE OF SHERRITT'S NEGOTIATIONS TO
BUY THE FERTILIZER BUSINESS OF IMPERIAL OIL LTD THE MOVE AFFECTS ABOUT 200
MILLION US OF DEBT CURRENTLY RATED DOUBLEBMINUS THE RATING AGENCY
SAID THAT DEPENDING ON THE PURCHASE PRICE AND METHOD OF FINANCING THE
ACQUISITION COULD RESULT IN GREATER FINANCIAL RISK FOR SHERRITT
9401170141 940117 CHINESE INSTITUTIONS QUIETLY EMERGE AS INVESTORS OF
FOREIGN DEBT SECURITIES  BY JULIA LEUNG STAFF REPORTER OF THE WALL
STREET JOURNAL

HONG KONG WHEN GENERAL ELECTRIC CAPITAL CORP WENT ON THE ROAD TO PROMOTE
A 300 MILLION NOTE ISSUE LAST OCTOBER IT MADE SOME UNUSUAL STOPS ALONG
WITH THE TRADITIONAL TRIP TO HONG KONG THE US COMPANY VISITED SHANGHAI
AND BEIJING

THE DETOUR PAID OFF ROUGHLY 30 OF THE OFFERING AIMED AT NONJAPANESE
INVESTORS IN ASIA WAS SNAPPED UP BY CHINESE FINANCIAL INSTITUTIONS
THERE ARE CLEARLY A LOT OF INTERNATIONAL INVESTORS IN CHINA SAYS JEFFREY
WERNER TREASURER OF GE CAPITAL THE FINANCE UNIT OF USBASED GENERAL
ELECTRIC CO

GE ISN'T ALONE IN MAKING THAT DISCOVERY MOST PEOPLE THINK OF CHINA AS A
MAJOR IMPORTER OF CAPITAL ITS STATEOWNED COMPANIES RAISED A RECORD 17
BILLION THROUGH OVERSEAS SALES OF DEBT SECURITIES LAST YEAR BUT CHINESE
INSTITUTIONS ALSO ARE EMERGING AS EXPORTERS OF FUNDS IN THE PAST FEW YEARS
THEY HAVE QUIETLY BECOME ASIA'S FASTESTGROWING INVESTOR BASE FOR FOREIGN
GOVERNMENT AND CORPORATE BONDS

AS THE CHINESE ECONOMY ROARS AHEAD AT AN ANNUAL CLIP OF 12 TO 13 THE
COUNTRY'S FINANCIAL INSTITUTIONS ARE FLUSH WITH FOREIGN FUNDS GENERATED BY
EXPORTS AND THE INFLOW OF FOREIGN INVESTMENT WHILE THE BANKS PLOW SOME OF
THOSE FUNDS INTO THE DOMESTIC ECONOMY TO FINANCE INFRASTRUCTURE AND OTHER
PROJECTS THEY ARE EAGER TO INVEST MUCH OF THE CASH ABROAD

THE CAPITAL FLOW IS NO LONGER A ONEWAY STREET SAYS TOMOO HAYAKAWA
PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ASIAN FINANCE & INVESTMENT CORP A
SINGAPOREBASED AFFILIATE OF ASIAN DEVELOPMENT BANK

HONG KONG TAIWAN AND SINGAPORE REMAIN THE REGION'S BIGGEST INVESTORS
OUTSIDE JAPAN IN FOREIGN DEBT SECURITIES BUT CHINA IS GAINING GROUND ON
THEM ALTHOUGH NO PRECISE FIGURES ARE AVAILABLE BANKERS SAY ROUGHLY A DOZEN
CHINESE INSTITUTIONS REGULARLY TAKE UP 15 TO 20 OF OFFERINGS OF HONG KONG
DOLLARDENOMINATED BONDS AND SOCALLED DRAGON BONDS WHICH ARE DEBT
SECURITIES AIMED AT BUYERS IN ASIA OUTSIDE OF JAPAN THE PORTION RISES TO
25 OR 30 WHEN THE DRAGON BONDS ARE FROM A CHINESE ISSUER JUST FIVE YEARS
AGO BANKERS SAY CHINA'S ROLE IN THE MARKET WAS NEGLIGIBLE

CHINESE DEMAND FOR SUCH INVESTMENTS HAS GROWN WITH ITS FOREIGNEXCHANGE
RESERVES THE RESERVES HELD BOTH BY PEOPLE'S BANK OF CHINA AND
STATEOWNED BANK OF CHINA STOOD AT 414 BILLION AS OF SEPT 30 THAT'S
UP 50 FROM THE END OF 1990 THOUGH IT IS BELOW THE PEAK OF 45 BILLION
RECORDED IN DECEMBER 1992

BOND TRADERS SAY CHINESE INVESTORS ARE HIGHLY PROFESSIONAL AND IN MANY CASES
MORE AGGRESSIVE THAN THEIR COUNTERPARTS IN OTHER ASIAN COUNTRIES TAIWAN'S
CENTRAL BANK OF CHINA FOR EXAMPLE IS THE BIGGEST FOREIGN BUYER OF US
TREASURY SECURITIES BUT IT TENDS TO STICK TO THE CAUTIOUS STRATEGY OF
HOLDING THE PAPER UNTIL MATURITY

INVESTORS IN CHINA TRADE IN AND OUT OF THE MARKET A LOT FOR SHORTTERM
TRADING GAINS SAYS BRYAN CHAN ASSISTANT MANAGER AT YAMAICHI INTERNATIONAL
HK LTD'S INTERNATIONAL BOND DIVISION ON A DAY OF ACTIVE TRADING
TRANSACTIONS FROM CHINESE INVESTORS ACCOUNT FOR ROUGHLY 30 OF TOTAL TRADING
VOLUME OF HIS OFFICE IN HONG KONG MR CHAN SAYS THE OFFICE ALSO DEALS WITH
INVESTORS IN HONG KONG TAIWAN AND THE PHILIPPINES

MUCH OF CHINA'S BONDMARKET SAVVY COMES FROM BANK OF CHINA WHOSE EXTENSIVE
INTERNATIONAL BRANCH NETWORK HAS GIVEN IT EXPERIENCE IN FOREIGN MARKETS
UNTIL ABOUT TWO YEARS AGO BANK OF CHINA MANAGED THE COUNTRY'S FOREIGN
RESERVES PEOPLE'S BANK CHINA'S CENTRAL BANK IS GRADUALLY TAKING OVER THAT
DUTY BUT BANK OF CHINA STILL MANAGES THE BULK OF THE RESERVES

UNLIKE TAIWAN WHERE THE CENTRAL BANK IS VERY BUREAUCRATIC CHINA'S
RESERVES ARE MANAGED BY PEOPLE WHO ARE MORE OR LESS COMMERCIAL BANKERS
SAYS A BOND TRADER WITH A EUROPEAN BANK

MOST AGGRESSIVE ARE THE NEWCOMERS SUCH AS THE SHANGHAI BRANCH OF INDUSTRIAL
& COMMERCIAL BANK OF CHINA AND BANK OF COMMUNICATIONS IN SHANGHAI MANY OF
THE BANKS' CORPORATE AND INDIVIDUAL DEPOSITORS WORRIED ABOUT INFLATION AND
THE RISK OF DEVALUATION INSIST ON HOLDING FOREIGN CURRENCY RATHER THAN THE
YUAN SOME OF THOSE DEPOSITS ARE INVESTED IN INTERNATIONAL DEBT SECURITIES

CHINESE INVESTORS SEEM MOST EAGER TO BUY PAPER WITH TRIPLEA RATINGS AND
HIGH NAME RECOGNITION HENCE THE POPULARITY OF GE CAPITAL'S NOTES A COMPANY
OFFICIAL SAYS GE CAPITAL DECIDED TO TAKE ITS ROADSHOW TO CHINA AFTER
NOTICING THAT A SIGNIFICANT PORTION OF ITS HONG KONG DOLLARDENOMINATED
NOTES ISSUED IN THE PAST YEAR HAD BEEN BOUGHT BY CHINESE FINANCIAL
INSTITUTIONS 9401170140 940117 BOMBARDIER PLANS STOCK OFFERING

MONTREAL BOMBARDIER INC SAID IT WILL ISSUE THROUGH A PUBLIC OFFERING 10
MILLION CLASS B COMMON SHARES AT 21875 CANADIAN DOLLARS US1655 EACH

BOMBARDIER CURRENTLY HAS 155 MILLION COMMON SHARES OUTSTANDING INCLUDING
110 MILLION CLASS B SHARES IN TRADING ON THE MONTREAL EXCHANGE FRIDAY THE
CLASS B SHARES CLOSED AT C2175 DOWN 375 CENTS

SCOTIAMCLEOD INC IS LEAD UNDERWRITER FOR THE OFFERING BOMBARDIER A
TRANSPORTATION EQUIPMENT MAKER SAID IT WILL USE THE NET PROCEEDS OF ABOUT
C210 MILLION TO INCREASE WORKING CAPITAL 9401170139 940117 ADOLPH COORS
UNIT SALES VOLUME

GOLDEN COLO ADOLPH COORS CO SAID ITS COORS BREWING CO SUBSIDIARY
REACHED RECORD BEVERAGE SALES VOLUME FOR THE YEAR ENDED DEC 26 1993 OF
198 MILLION BARRELS UP 13 FROM THE PREVIOUS YEAR'S 196 MILLION BARRELS

THE COMPANY SAID HOWEVER THAT BEER SALES FOR ITS FOURTH QUARTER DECLINED
36 TO 42 MILLION BARRELS FROM 44 MILLION BARRELS A YEAR EARLIER THE
BREWER BLAMED THE DROP ON AN ANTICIPATED REDUCTION IN DISTRIBUTOR
INVENTORIES IN THE QUARTER AND AN INCREASE IN DISTRIBUTOR INVENTORIES IN THE
YEAREARLIER PERIOD

OFFICIALS SAID COORS BREWING'S SALES VOLUME ISN'T NECESSARILY INDICATIVE OF
THE FINANCIAL PERFORMANCE OF ADOLPH COORS 9401170138 940117 FINANCING
BUSINESS PAGING NETWORK INC

PAGING NETWORK INC DALLAS SAID IT SOLD 300 MILLION OF SENIOR
SUBORDINATED NOTES DUE 2006 PRICED AT 8 7/8 FOR SALE AT PAR THE SALE WAS
AN INCREASE FROM 200 MILLION OF NOTES ORIGINALLY OFFERED THE
PAGINGSERVICES CONCERN SAID THE NOTES ARE RATED SINGLEB2 AND SINGLEB BY
MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP RESPECTIVELY
THE NOTES WERE DRAWN FROM THE COMPANY'S RECENTLY FILED 600 MILLION SHELF
REGISTRATION PAGING NETWORK SAID IT WILL USE NET PROCEEDS OF THE SALE TO
REPAY THE DEBT UNDER ITS REVOLVING CREDIT AGREEMENT AND FOR GENERAL
CORPORATE PURPOSES GOLDMAN SACHS & CO LED THE UNDERWRITING 9401170137
940117 INTERNATIONAL WASHINGTON INSIGHT US CUTTING SALVADOR AID
MAY REGRET LOSS OF LEVERAGE IN FRAGILE PEACE PROCESS  BY CARLA
ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON WITH FEW APOLOGIES AND EVEN FEWER REGRETS THE CLINTON
ADMINISTRATION IS WALKING AWAY FROM EL SALVADOR SLASHING AID ALMOST 60
FROM 230 MILLION IN 1993 TO WHAT OFFICIALS SAY WILL BE 94 MILLION THIS
YEAR

THE ADMINISTRATION'S BIGPICTURE PLANNERS ARGUE THAT WITH A PEACE SETTLEMENT
HOLDING IN EL SALVADOR AND ITS ECONOMY REBOUNDING US AID CAN BE BETTER
SPENT ELSEWHERE MOST NOTABLY IN RUSSIA A FLURRY OF RECENT NEWS REPORTS
DETAILING THE REAGAN AND BUSH ADMINISTRATIONS' MISALLIANCES WITH DEATH
SQUADS AND OTHER ASSORTED THUGS IN EL SALVADOR HAS ONLY REINFORCED THEIR
DECISION TO DECLARE VICTORY AND RETREAT

THAT VICTORY MAY PROVE FRAGILE AND THE US MAY QUICKLY REGRET THE LOSS OF
LEVERAGE A RECENT SPATE OF KILLINGS HAS RAISED FEARS THAT THE DEATH SQUADS
MAY BE CONTEMPLATING A COMEBACK AND SOME US ANALYSTS WORRY THAT THE
FRONTRUNNER IN THE MARCH PRESIDENTIAL ELECTIONS RIGHTIST SAN SALVADOR
MAYOR ARMANDO CALDERON SOL MAY BE UNWILLING OR UNABLE TO RESTRAIN EXTREME
ELEMENTS OF HIS CONSERVATIVE ARENA PARTY

US OFFICIALS SAY THEY AREN'T SURE WHO IS BEHIND THE KILLINGS LAST YEAR OF
FOUR GUERRILLACOMMANDERSTURNEDPOLITICIANS DEATHS ORIGINALLY DISMISSED BY
THE SALVADORAN GOVERNMENT AS COMMON CRIMES BUT THEY WERE WORRIED ENOUGH
TO DISPATCH ASSISTANT SECRETARY OF STATE ALEXANDER WATSON IN NOVEMBER TO
WARN AGAINST A RENEWAL OF POLITICAL VIOLENCE AND TO HINT AT A CUTOFF OF AID

LAST AUGUST WHEN IT LOOKED LIKE TENS OF THOUSANDS OF SALVADORAN VOTERS
MIGHT NOT BE REGISTERED IN TIME FOR THE MARCH 20 ELECTIONS A TEMPORARY
FREEZE ON 70 MILLION IN US AID HELPED PERSUADE SALVADORAN OFFICIALS TO
SPEED UP THE PROCESS WHILE US OFFICIALS SAY THEY NOW BELIEVE THE
ELECTIONS WILL BE FAIR AND COMPARATIVELY PEACEFUL THEY CLEARLY ARE NERVOUS
THAT THE EXPECTED VICTOR MR CALDERON SOL WILL BE EVEN LESS AMENABLE TO
US PERSUASION THAN HIS PREDECESSORS

US ANALYSTS GIVE MR CALDERON SOL GOOD MARKS FOR HIS TENURE AS MAYOR AND
SAY HE HAS RUN A MODERATE AND RESPECTABLE CAMPAIGN FOR THE PRESIDENCY
THEY ALSO SAY THEY HAVE NO HARD EVIDENCE THAT MR CALDERON SOL WAS EVER
PERSONALLY INVOLVED WITH THE DEATH SQUADS

AT THE SAME TIME THEY DESCRIBE HIM AS AN ENTHUSIASTIC ACOLYTE OF THE
ARENA PARTY'S LATE FOUNDER AND ALLEGED DEATHSQUAD LEADER CASHIERED MAJ
ROBERTO D'AUBUISSON MOREOVER UNLIKE THE CURRENT PRESIDENT ALFREDO
CRISTIANI MR CALDERON SOL HAS VERY LITTLE AFFECTION FOR THE US AND FAR
LESS SOPHISTICATION WHEN IT COMES TO THE WORKINGS OF AMERICAN POLITICS THE
US OFFICIALS SAY

MR CALDERON SOL WAS FURIOUS WHEN THE STATE DEPARTMENT RECENTLY DECLASSIFIED
A DIPLOMATIC CABLE ONE OF THOUSANDS MADE PUBLIC ALLEGING THAT HIS HOME HAD
BEEN USED TO PLOT A RIGHTWING KIDNAPPING MORE THAN A DECADE AGO HE SAW IT
AS A PLOT BY WASHINGTON TO GET HIM SAYS ONE AMERICAN ANALYST

WHOEVER WINS THE ELECTION LEFTIST LEADER RUBEN ZAMORA IS RUNNING A
DISTANT SECOND IN THE POLLS WITH CHRISTIAN DEMOCRAT FIDEL CHAVEZ MENA EVEN
FURTHER BEHIND WILL NEED BOTH GOADING AND SUPPORT FROM THE US TO
SOLIDIFY THE PEACE

A PROMISED LAND REFORM THAT WAS AT THE HEART OF THE 1992 PEACE ACCORD HAS
LAGGED BADLY WHILE JUDICIAL REFORM HAS GONE NOWHERE AT ALL ACCORDING TO
US ANALYSTS EFFORTS TO CREATE AN IMPARTIAL POLICE FORCE ANOTHER KEY
PORTION OF THE PEACE AGREEMENT HAVE BEEN MIXED THE NOTORIOUS TREASURY
POLICE AND NATIONAL GUARD HAVE BEEN ABOLISHED WHILE NEW UNITS OF A
LESSPOLITICIZED HUMANRIGHTSCONSCIOUS NATIONAL CIVILIAN POLICE HAVE BEEN
PLACED IN FIVE OF EL SALVADOR'S 14 DEPARTMENTS AT THE SAME TIME THE
GOVERNMENT CONTINUES TO FUND AND TRAIN THE OLD POLICE FORCE AND IT HAS
TRANSFERRED MEMBERS OF THE OLD SECURITY FORCES TO KEY POSITIONS IN THE NEW
POLICE LAST WEEK MR ZAMORA CHARGED THAT RIGHTWING DEATH SQUADS ARE AGAIN
OPERATING FROM INSIDE BOTH THE ARMY AND THE POLICE ALBEIT WITH LESS
INSTITUTIONAL SUPPORT THAN IN THE PAST

STRUGGLING TO PUT THE BEST FACE ON A BAD SITUATION ONE US OFFICIAL POINTS
OUT THAT WITH A RELATIVELY STRONG ECONOMY GROWTH LAST YEAR WAS 5 WITH
THE SAME LEVEL EXPECTED IN 1994 EL SALVADOR MAY BE BETTER PREPARED THAN
OTHER COUNTRIES TO WEATHER WHAT WILL BE ACROSSTHEBOARD CUTBACKS IN AID TO
LATIN AMERICA THIS YEAR OVERALL AID TO THE REGION IS EXPECTED TO DROP BY
MORE THAN A THIRD

IF YOU REALLY WANT TROUBLE LOOK AT NICARAGUA SAYS THE OFFICIAL WHO ADDS
THAT NICARAGUA'S FOREIGN RESERVES ARE NEXT TO NOTHING AND THEIR ECONOMY IS
GOING NOWHERE US AID TO NICARAGUA WILL BE HALVED THIS YEAR TO 52
MILLION FROM 101 MILLION IN 1993 9401170136 940117 WESTERN GERMAN
TEXTILE SALES

FRANKFURT WHOLESALE SALES OF WESTERN GERMAN HOME TEXTILES FELL AN
INFLATIONADJUSTED 4 IN THE 11MONTH SPAN FROM JANUARY THROUGH NOVEMBER
COMPARED WITH THE SAME PERIOD IN 1992

THE FEDERAL STATISTICS OFFICE WHICH RELEASED THE FIGURES IN A SPECIAL
REPORT ON THE SECTOR DIDN'T GIVE A REPORT FOR ALL 12 MONTHS OF 1993 HOME
TEXTILES ARE ONE BRANCH WITHIN THE WESTERN GERMAN WHOLESALE SECTOR

FROM 1987 THROUGH 1991 THE WESTERN GERMAN TEXTILE BRANCH POSTED A REAL GAIN
OF 6 THE AGENCY SAID IN 1992 THE SAME BRANCH IN WESTERN GERMANY HAD A
57 REAL DROP IN WHOLESALE SALES 9401170135 940117 FINANCING BUSINESS 
EATON CORP

EATON CORP CLEVELAND SAID IT SOLD 21 MILLION COMMON SHARES IN A PRIVATE
SALE RAISING 999 MILLION IN NET PROCEEDS EATON A MAKER OF
VEHICLEPOWERTRAIN COMPONENTS AND CONTROLS FOR INDUSTRIES INCLUDING
TRANSPORTATION SAID IT IS USING THE MONEY TO REDEEM 893 MILLION
OUTSTANDING OF 8 1/2 DEBENTURES DUE JAN 15 2017 CUTTING ITS INTEREST
COST THE STOCK SALE ALSO IS PART OF THE COMPANY'S FINANCING FOR ITS PENDING
11 BILLION ACQUISITION OF WESTINGHOUSE ELECTRIC CORP'S DISTRIBUTION AND
CONTROLS UNIT EATON PLANS TO SELL AN ADDITIONAL 200 MILLION OF COMMON
STOCK TO HELP FINANCE THE ACQUISITION WHICH THE COMPANY HOPES TO CLOSE BY
MIDFEBRUARY AT DEC 31 EATON HAD 713 MILLION COMMON SHARES OUTSTANDING
9401170134 940117 DSC TO REDEEM DEBENTURES

DALLAS DSC COMMUNICATIONS CORP CALLED FOR REDEMPTION ALL ITS 364
MILLION IN OUTSTANDING 8 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003

THE TELECOMMUNICATIONPRODUCT MAKER SAID THE REDEMPTION PRICE FOR EACH
DEBENTURE IS 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST OF 20 FROM NOV
15 TO THE FEB 15 REDEMPTION DATE

ALTERNATIVELY DEBENTURE HOLDERS CAN UP TO THE CLOSE OF BUSINESS FEB 14
CONVERT THE DEBENTURES INTO SHARES OF DSC'S COMMON STOCK AT THE RATE OF
5450 A SHARE OR 1835 SHARES OF COMMON STOCK FOR EACH 1000 PRINCIPAL
AMOUNT OF DEBENTURES ACCRUED INTEREST FROM NOV 15 TO THE DATE OF
CONVERSION WON'T BE PAID ON CONVERTED DEBENTURES THE COMPANY SAID

THE 364 MILLION OF OUTSTANDING DEBENTURES WOULD CONVERT INTO APPROXIMATELY
668183 COMMON SHARES OF DSC IF ALL HOLDERS ELECT TO CONVERT 9401170133
940117 PEARSON'S SALE OF CAMCO SHARES

LONDON UNITED KINGDOM PUBLISHER PEARSON PLC SAID THE UNDERWRITERS OF ITS
RECENT FLOTATION OF 55 OF CAMCO INTERNATIONAL ITS OILSERVICES UNIT HAVE
EXERCISED THEIR OPTION TO BUY 36 OF CAMCO'S ISSUED SHARE CAPITAL

PEARSON SAID IT WILL RECEIVE ANOTHER 85 MILLION 127 MILLION THROUGH
THE UNDERWRITERS' PURCHASE

IN NOVEMBER PEARSON ANNOUNCED IT WOULD SELL 55 OF CAMCO AS A FIRST STEP IN
SELLING ALL OF THE COMPANY IT RECEIVED 15 A SHARE

CAMCO IS TRADED ON THE NEW YORK STOCK EXCHANGE PEARSON OWNS 414 OF CAMCO
9401170132 940117 DLC SAYS CUT AND INVEST  BY ROBERT J SHAPIRO

THE IMPENDING FEDERAL BUDGET DEBATE WILL TEST WASHINGTON'S TRUE GRASP OF THE
WORLD ECONOMY THE CHALLENGE FOR PRESIDENT CLINTON AND CONGRESS IS TO FIGURE
OUT HOW TO USE FISCAL POLICY TO PROMOTE NATIONAL GROWTH IN A GLOBAL ECONOMY

IT WON'T BE EASY BECAUSE WASHINGTON DEBATES OVER THE BUDGET ARE USUALLY
DISENGAGED FROM THE ECONOMICS OF GROWTH BOTH POLITICAL PARTIES HAVE BEEN
CONSUMED WITH QUESTIONS OF WHO WILL PAY MORE TAXES AND WHO LESS AND WHO
SHOULD GAIN NEW BENEFITS AND WHO SHOULD RECEIVE LESS THESE OPPOSING
VERSIONS OF A PRIMITIVE TAXANDSPEND PARADIGM INFORM MOST ECONOMIC THINKING
IN POLITICAL CIRCLES LIBERALS SIMPLY FOCUS ON INCREASING SPENDING AND WHEN
NECESSARY TAXES TOO CONSERVATIVES CONCENTRATE ONLY ON CUTTING TAX RATES
AND WHEN POSSIBLE SPENDING AS WELL

FOR THE NEW BUDGET TO BE A GENUINE INSTRUMENT OF GROWTH POLICY IT SHOULD BE
REORGANIZED AROUND A NEW STRATEGY BASED ON THE REAL TERMS OF COMPETITION IN
THE GLOBAL ECONOMY THIS STRATEGY WHICH I CALL CUT AND INVEST PROPOSES
THAT GOVERNMENT USE THE BUDGET BOTH TO PROMOTE HIGHER LEVELS OF PUBLIC AND
PRIVATE INVESTMENT AND TO ACTIVELY ENCOURAGE VIGOROUS MARKET COMPETITION TO
DRIVE PRIVATESECTOR INNOVATION AND PRODUCTIVITY

THE STRATEGY RELIES FIRST ON CUTTING FEDERAL SPENDING AND TAX SUBSIDIES THAT
INSULATE CERTAIN INDUSTRIES FROM COMPETITION BUT IT ALSO REQUIRES US TO
DEFINE WHAT TRULY ARE PUBLIC INVESTMENTS AND THEN TO DIRECT PUBLIC
RESOURCES TOWARD THEM IN EFFECT CUT AND INVEST IS A WAY FOR THE PROPONENTS
OF INVESTMENT AND THE PROPONENTS OF DEFICIT REDUCTION TO PUT THEIR MONEY
WHERE THEIR MOUTH IS AND IMPROVE AMERICA'S COMPETITIVENESS

THE NEW BUDGET ALSO SHOULD RECOGNIZE AS ADAM SMITH DID THAT IN CERTAIN
AREAS OF EDUCATION AND TRAINING BASIC RESEARCH AND ECONOMIC
INFRASTRUCTURE MARKETS NORMALLY GENERATE LESS INVESTMENT THAN THE ECONOMY
COULD PROFITABLY USE GENUINE PUBLIC INVESTMENT IS DIFFERENT FROM OTHER
SPENDING IT IS CALLED FOR ONLY IN THOSE SPECIFIC AREAS WHERE MARKETS
INVARIABLY FAIL TO GENERATE APPROPRIATE LEVELS OF PRIVATE INVESTMENT AND
ITS ONLY PURPOSE IS TO EXPAND THE PRIVATE ECONOMY'S CAPACITY TO CREATE
WEALTH

A PROGROWTH BUDGET ALSO MUST ACTIVELY STRENGTHEN DOMESTIC COMPETITION
BECAUSE ONLY COMPETITIVE PRESSURES WILL DRIVE FIRMS AND WORKERS TO MAKE THE
MOST OF PRIVATE AND PUBLIC INVESTMENT THE TASK FACING BUSINESSES IN THE
GLOBAL ECONOMY INVOLVES ORGANIZING PRODUCTIVE FACTORS FROM AROUND THE WORLD
 RESEARCH AND DEVELOPMENT MATERIALS LABOR PRODUCT AND PROCESS DESIGN
FINANCING MARKETING PACKAGING AND DISTRIBUTION TO PRODUCE THE GOODS AND
SERVICES DEMANDED BY MARKET SEGMENTS AROUND THE WORLD GLOBAL COMPETITION
IN SHORT REQUIRES THAT FIRMS LEARN TO INNOVATE EFFICIENTLY IN EVERY ASPECT
OF PRODUCTION

TO THIS END THE NEW BUDGET SHOULD PHASE OUT MANY TENS OF BILLIONS OF
DOLLARS OF SPECIFIC SPENDING AND TAX SUBSIDIES THAT INSULATE PARTICULAR
AMERICAN INDUSTRIES FROM HEALTHY MARKET PRESSURES TRADE PROTECTIONS AND
CERTAIN KINDS OF ECONOMIC REGULATION HAVE A SIMILAR EFFECT ON AN INDUSTRY'S
INCENTIVES TO INNOVATE AND BECOME MORE EFFICIENT

THESE DOMESTIC SUBSIDIES COST THE US JOBS BUSINESS FORMATION AND OVERALL
GROWTH NOT ONLY DO THEY REDUCE NORMAL COMPETITIVE PRESSURES TO INNOVATE FOR
FOREIGN COMPETITION BUT THEY ALSO PLACE INDUSTRIES NOT RECEIVING FAVORED
TREATMENT AT A DISADVANTAGE BY EFFECTIVELY RAISING THEIR COSTS OF CAPITAL
AND LABOR RELATIVE TO SUBSIDIZED SECTORS THE RESULT INDUSTRIES RECEIVING
SUBSIDIES BECOME LESS COMPETITIVE AND THOSE DENIED THEM HAVE INCENTIVES TO
TAKE ADVANTAGE OF GLOBALIZATION AND MOVE SOME OF THEIR OPERATIONS ABROAD
WHERE LABOR COSTS ARE LOWER OR SPECIAL SUBSIDIES ARE AVAILABLE

GROWTH POLICY DOES NOT DICTATE AS ORTHODOX CONSERVATIVES OFTEN SUGGEST
THAT THE NEW BUDGET SHOULD END EVERY INSTANCE OF SPECIALSECTOR SPENDING AND
TAX TREATMENT IN SOME CASES THERE ARE LEGITIMATE SOCIAL PURPOSES SUCH AS
HEALTHCARE SPENDING FOR THE POOR OR INCENTIVES FOR MIDDLECLASS HOME
OWNERSHIP IN ADDITION SOME SUBSIDIES OFFSET GENUINE MARKET FAILURES SUCH
AS SPENDING TO PROTECT BANK DEPOSITORS AND TAX INCENTIVES FOR R&D GLOBAL
MARKETS REQUIRE THAT THE PRESIDENT AND CONGRESS CUT THOSE PROGRAMS AND TAX
PROVISIONS THAT ARTIFICIALLY RAISE THE RATE OF RETURN FOR PARTICULAR
INDUSTRIES FOR NO OVERRIDING SOCIAL OR ECONOMIC PURPOSE

BUT AS BOTH RONALD REAGAN AND BILL CLINTON QUICKLY DISCOVERED SPECIAL
INTERESTS USUALLY CAN BLOCK SERIOUS CONGRESSIONAL ACTION TO PHASE OUT THEIR
SUBSIDIES A NEW WAY HAS TO BE FOUND TO UNRAVEL THIS WEB OF POLITICAL
INFLUENCE

CONGRESS AND THE PRESIDENT SHOULD CREATE A COMMISSION ON NATIONAL
COMPETITIVENESS AND INDUSTRY SUBSIDIES MODELED ON THE BASE CLOSING
COMMISSION THIS INDEPENDENT BODY WOULD IDENTIFY AND EVALUATE SPENDING
PROGRAMS AND TAX PROVISIONS THAT PROVIDE ANTICOMPETITIVE TRANSFERS TO
PARTICULAR INDUSTRIES AND RECOMMEND TO THE PRESIDENT AN ANNUAL PACKAGE OF
REFORMS THE PRESIDENT WOULD SUBMIT THE PACKAGE TO CONGRESS WHICH WOULD
HAVE TO VOTE ON THE PACKAGE WITHOUT AMENDMENT

THIS COMMISSION COULD START WITH THE 68 SPECIFIC SPENDING AND TAX SUBSIDIES
LISTED IN THE ACCOMPANYING TABLE TOTALING 225 BILLION OVER FIVE YEARS
THESE SAVINGS PLAINLY COULD FINANCE SUBSTANTIAL NEW PUBLIC INVESTMENT AND AN
ADDED MEASURE OF DEFICIT REDUCTION AS WELL AS PRESSING SOCIAL REFORMS IN
WELFARE AND LAW ENFORCEMENT IN EVERY WAY A CUTANDINVEST STRATEGY WOULD
LEAVE THE US MORE PRODUCTIVE AND COMPETITIVE IN THE WORLD ECONOMY

MR SHAPIRO IS VICE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE A THINK
TANK AFFILIATED WITH THE DEMOCRATIC LEADERSHIP COUNCIL AND WAS A PRINCIPAL
ECONOMIC ADVISER TO PRESIDENT CLINTON IN THE 1992 CAMPAIGN THIS ARTICLE IS
ADAPTED FROM A REPORT BEING ISSUED THIS WEEK BY PPI 9401170131 940117
ABREAST OF THE MARKET INDUSTRIALS' LOW DIVIDEND YIELD SPARKS WORRIES
OVER VALUATION  BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK THE NEW YEAR'S RALLY IN STOCKS HAS A DARK SIDE THE VALUATION
PICTURE IS GETTING UGLIER AND UGLIER

ANALYSTS IN A BEARISH MOOD ARE ESPECIALLY FOND OF CITING ONE OF THE POPULAR
VALUATION MEASURES THE STOCK MARKET'S DIVIDEND YIELD OR THE AMOUNT OF
MONEY PAID AS DIVIDENDS AS A PERCENTAGE OF SHARE PRICES THAT MEASURE
CALCULATED ON THE PAST YEAR'S DIVIDENDS HAS BEEN IN WHAT MANY TECHNICAL
ANALYSTS CONSIDER THE DANGER ZONE FOR TWO YEARS BUT AS STOCK PRICES MOVE
EVER HIGHER THE ALARM IS RINGING LOUDER

THE MARKET AT THESE LEVELS RESEMBLES MORE OF A GAMBLING CASINO THAN AN
INVESTMENT ARENA SAYS GERALDINE WEISS EDITOR OF INVESTMENT QUALITY
TRENDS A LA JOLLA CALIF NEWSLETTER

AT FRIDAY'S RECORD CLOSE OF 386720 FOR THE DOW JONES INDUSTRIAL AVERAGE
THE DIVIDEND YIELD ON THAT INDEX OF 30 BLUECHIP STOCKS FELL TO 262 FROM
AN ALREADY MEAGER 27 AT THE START OF THE NEW YEAR AND FAR BELOW THE
AVERAGE 44 OF THE PAST FEW DECADES

MANY ANALYSTS BELIEVE THAT WHEN THE INDUSTRIAL AVERAGE OR STANDARD & POOR'S
500STOCK INDEX IS YIELDING LESS THAN 3 STOCKS ARE DANGEROUSLY PRICEY
EVENTUALLY THEY ARGUE YIELDS WILL RISE TO THE LONGTERM AVERAGE EITHER
THROUGH FALLING PRICES OR RISING DIVIDENDS ALTHOUGH THE DIVIDEND YIELD HAS
BEEN FLASHING DANGER SIGNALS FOR MORE THAN TWO YEARS SOME STRATEGISTS ARE
PAYING MORE ATTENTION TO IT TODAY BECAUSE THE ENVIRONMENT INVESTORS ARE
FACING IS DIFFERENT

FOR STARTERS THE BULL MARKET IS ALREADY 40 MONTHS OLD AND WAY PAST
RETIREMENT AGE WHAT'S MORE INTEREST RATES WHICH WERE FALLING FAST AND
FURIOUSLY FOR THE PAST TWO YEARS APPEAR TO BE BOTTOMING THEY'RE MORE
LIKELY TO RISE THAN DROP IN THE COMING MONTHS

THOUGH LOW INTEREST RATES HAVE MANAGED TO PROLONG THE BULL MARKET
STRATEGISTS SAY IT'S ONLY LOGICAL THAT WHEN INTEREST RATES BEGIN TO TICK UP
INVESTORS WILL START FOCUSING AGAIN ON TRADITIONAL VALUATION MEASURES AND
WHEN THEY DO THEY MAY BE IN FOR A RUDE AWAKENING

MS WEISS SAYS THAT WHILE SHE EXPECTS DIVIDENDS TO RISE AT A VIGOROUS 6
PACE THIS YEAR EVEN THAT WON'T BE ENOUGH TO SUPPORT TODAY'S LOFTY STOCK
PRICES

ARNOLD KAUFMAN EDITOR OF STANDARD & POOR'S OUTLOOK NEWSLETTER ADDS THAT
EVEN IF STOCK PRICES MADE NO FURTHER GAINS AND DIVIDENDS GREW 10 THE
DIVIDEND YIELD ON STOCKS WOULD RISE TO ONLY 294 BY THE END OF 1994

IT'S EXTREMELY WORRISOME HE SAYS IF THE S&P 500 MOVES UP ANOTHER FIVE
TO SEVEN POINTS WE WILL BE AT THE LOWEST DIVIDEND YIELD IN MODERN HISTORY

TO BE SURE STOCK MARKET BULLS DON'T DISMISS THE DIVIDEND YIELD AS A
VALUATION TOOL BUT THEY CONTEND THAT IT HAS TO BE LOOKED AT IN THE CONTEXT
OF INTEREST RATES

IT'S NOT THE ABSOLUTE LEVEL OF 3 THAT IS KEY SAYS ELAINE GARZARELLI
STOCK STRATEGIST AT LEHMAN BROTHERS IT'S THE RELATIONSHIP OF THE DIVIDEND
YIELD ON STOCKS WITH OTHER INVESTMENT ALTERNATIVES THAT IS IMPORTANT

MS GARZARELLI SAYS HER STUDIES HAVE SHOWN THAT THE DIVIDEND YIELD HAS
HISTORICALLY RUN AT 43 OF THE AVERAGE OF THE TREASURY'S THREEMONTH BILL
RATE AND THE 30YEAR BOND YIELD AS LONG AS HER OTHER STOCK MARKET
INDICATORS ARE FLASHING BULLISH SIGNALS THAT WOULD SUGGEST THE DIVIDEND
YIELD ON STOCKS COULD GO AS LOW AS 2 BEFORE IT'S COMPARABLE TO PAST BULL
MARKET PEAKS SHE SAYS

WHAT'S MORE CORRECTIONS GENERALLY DON'T OCCUR WHEN THE SPREAD BETWEEN THE
DIVIDEND YIELD ON STOCKS AND THE TREASURY'S THREEMONTH BILL RATE IS AS
SMALL AS IT IS NOW MS GARZARELLI SAYS THAT THE SPREAD BETWEEN THE TWO
BAROMETERS WOULD HAVE TO WIDEN TO 100 BASIS POINTS BEFORE SHE STARTED
CALLING FOR A 10 TO 15 CORRECTION IN STOCK PRICES RIGHT NOW THE GAP
BETWEEN THE TWO IS 40 BASIS POINTS

OTHER ANALYSTS SUCH AS LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT
BEARS HIS NAME SAY SENTIMENT WILL BE MORE CRITICAL TO THE DEMISE OF THE
BULL MARKET THAN THE DIVIDEND YIELD

WHEN EVERYBODY SAYS THE 3 DIVIDEND YIELD DOESN'T MATTER ANYMORE THAT WILL
SET MY ALARM OFF SAYS MR BIRINYI HE ARGUES THAT THERE ARE TOO MANY
INVESTORS FRETTING ABOUT VALUATION TOOLS LIKE DIVIDEND YIELD AND
PRICEEARNINGS FOR THERE TO BE A SIGNIFICANT CORRECTION IN THE MARKET TODAY

NONE OF THIS IS TO SAY THAT ALL STOCKS ARE EXPENSIVE GEORGE SHIRK RESEARCH
ANALYST AT THE FORT LAUDERDALE FLABASED INSTITUTE FOR ECONOMETRIC
RESEARCH IS BEARISH ON THE OVERALL STOCK MARKET BUT NEVERTHELESS FINDS
POCKETS OF CHEAP STOCKS ONE FAVORITE SHOPPING AREA IS BANK STOCKS MR
SHIRK NOTES THAT THE AVERAGE BANK STOCK SPORTS A DIVIDEND YIELD OF AROUND
3 THE KEY HE SAYS IS TO SNAP UP BANK ISSUES ON SMALL PRICE RETREATS THAT
BOOST THEIR DIVIDEND YIELDS HOPEFULLY TEMPORARILY

MR SHIRK FINDS AN ATTRACTIVE INVESTMENT OPPORTUNITY IN STORAGE EQUITIES A
REALESTATE INVESTMENT TRUST THAT BUYS MINISTORAGE WAREHOUSES THE STOCK
WHICH GAINED 1/8 ON FRIDAY TO 14 5/8 HAS A GENEROUS YIELD OF 57

THIS PAYS A YIELD SIMILAR TO LONGTERM BONDS SAYS MR SHIRK BUT IT'S
NOT GOING TO BE INTEREST RATESENSITIVE BECAUSE THE COMPANY HAS PAID DOWN A
LOT OF DEBT OVER THE PAST YEAR

THE DOW JONES INDUSTRIAL AVERAGE CLIMBED TO ITS SEVENTH RECORD OF THE YEAR
AMID POSITIVE ECONOMIC NEWS

THE AVERAGE JUMPED 2477 TO 386720 BREAKING THE PREVIOUS HIGH OF 386551
SET MONDAY STANDARD & POOR'S 500STOCK INDEX ROSE 244 TO 47491 AND THE
NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 117 TO 26290 THE NASDAQ
COMPOSITE SURGED 450 TO 79231 ITS SECOND STRAIGHT RECORD THE DOW JONES
TRANSPORTATION AVERAGE ALSO HIT A RECORD GAINING 1073 POINTS TO 183481

VOLUME ON THE BIG BOARD CLIMBED TO 305 MILLION SHARES FROM 2779 MILLION
THURSDAY RISING ISSUES OUTNUMBERED DECLINERS 1245 TO 871

FOR THE WEEK THE INDUSTRIAL AVERAGE ROSE 4643 POINTS OR 120 THE NYSE
COMPOSITE GAINED 256 POINTS OR 098 AND THE S&P 500 ADDED 501 OR
107

WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD
STOCK INDEX GAINED 142 TO 11324

STOCK MARKET INVESTORS WERE ENCOURAGED BY A RISE IN DECEMBER INDUSTRIAL
PRODUCTION AND A JUMP IN THE UNIVERSITY OF MICHIGAN CONSUMER CONFIDENCE
INDEX BUT BONDS SUFFERED WITH THE TREASURY'S BENCHMARK 30YEAR ISSUE
SINKING 1/2 POINT ITS YIELD ROSE TO 629 THE BOND MARKET WILL BE CLOSED
TODAY IN OBSERVANCE OF DR MARTIN LUTHER KING JR'S BIRTHDAY

AUTODESK LEAPED 2 1/4 TO 44 3/4 AND CISCO SYSTEMS JUMPED 1 3/4 TO 69 IN
NASDAQ TRADING HEWLETTPACKARD ROSE 2 TO 87 1/2 ON THE BIG BOARD

INVESTORS SOUGHT OUT TECHNOLOGY STOCKS AFTER MOTOROLA REPORTED STRONG
FOURTHQUARTER EARNINGS LATE THURSDAY MOTOROLA GAINED 1 TO 99 FRIDAY THE
COMPANY SAID ITS NET INCOME ROSE TO 115 A SHARE FOR THE QUARTER FROM 64
CENTS A YEAR EARLIER KIDDER PEABODY AND GRUNTAL BOOSTED THEIR RATINGS ON
THE STOCK

SEMICONDUCTOR STOCKS ROSE TOO TEXAS INSTRUMENTS JUMPED 3 TO 72 1/2 AND
MICRON TECHNOLOGY CLIMBED 2 3/8 TO 55 1/4 INTEL ROSE 1/2 TO 68 1/2 IN
NASDAQ TRADING

ORACLE ADDED 7/8 TO 33 1/8 TOPPING THE NASDAQ MOSTACTIVE LIST FOR THE
SECOND STRAIGHT DAY ON VOLUME OF 46 MILLION SHARES COMPARED WITH AVERAGE
DAILY TURNOVER OF 33 MILLION ORACLE AND WASHINGTON POST CO SAID THEY
EXECUTED A LETTER OF INTENT TO JOINTLY DEVELOP AND MARKET MULTIMEDIA
SOFTWARE AND SERVICES FOR ELECTRONIC PUBLISHING TERMS WEREN'T DISCLOSED
WASHINGTON POST DROPPED 1 7/8 TO 267

WELLFLEET COMMUNICATIONS SURGED 2 3/8 TO 70 1/8 IN NASDAQ TRADING ON STRONG
SECONDQUARTER EARNINGS THE COMPANY'S NET INCOME WAS 43 CENTS A SHARE
ABOVE THE 19 CENTS REPORTED LAST YEAR AND ANALYSTS' ESTIMATES OF 39 CENTS

SWEDEN'S LM ERICSSON TELEPHONE INCREASED 3 3/8 TO 45 1/2 THE COMPANY'S
ERICSSON NETWORK SYSTEMS SUBSIDIARY SAID IT FORMED A JOINT TEAM WITH
RELIANCE COMM/TEC TO DEFINE DEVELOP AND IMPLEMENT VIDEOONDEMAND FIELD
TRIALS FOR THE US MARKET RELIANCE COMM/TEC IS A UNIT OF RELIANCE
ELECTRIC WHICH GAINED 5/8 TO 19 7/8

XILINX SHOT UP 1 1/2 TO 49 3/4 ON NASDAQ WERTHEIM SCHRODER RAISED ITS
RATING ON THE STOCK TO OUTPERFORM FROM NEUTRAL CITING THURSDAY'S
RELEASE OF STRONG THIRDQUARTER EARNINGS XILINX SAID NET INCOME JUMPED TO
44 CENTS A SHARE FROM 30 CENTS LAST YEAR AND EXCEEDED ANALYSTS' ESTIMATES
OF 42 CENTS 9401170130 940117 SMALL STOCK FOCUS RALLY IS SAID TO GO
BEYOND JANUARY EFFECT'  BY WARREN GETLER STAFF REPORTER OF THE
WALL STREET JOURNAL

THE GOOD TIMES IN SMALL STOCKS JUST KEEP ON ROLLING

SMALLCAPITALIZATION STOCKS AS MEASURED BY THE RUSSELL 2000 INDEX PUSHED
INTO RECORD TERRITORY LAST WEEK LED BY ROBUST SHOWINGS FROM SEMICONDUCTOR
SHARES AND OTHER TECHNOLOGY ISSUES

FOLLOWING THIS YEAR'S STRONG START AND 1993'S IMPRESSIVE 17 GAIN IN THE
RUSSELL 2000 ANALYSTS ARE INCREASINGLY CONVINCED THAT THE SMALLSTOCK RALLY
THAT BEGAN IN EARNEST IN NOVEMBER 1990 HAS LONG LEGS FRIDAY THE RUSSELL
2000 INDEX GAINED 063 POINT TO 26127 FOR THE WEEK THE INDEX WAS UP 209
POINTS

TYPICALLY SMALL STOCKS TEND TO FALL ON TAXRELATED SELLING LATE IN ONE YEAR
AND THEN REBOUND IN JANUARY HENCE THE OFTCITED JANUARY EFFECT BUT MANY
ANALYSTS ARE CONVINCED THAT THE MARKET'S CURRENT MOMENTUM REFLECTS MORE THAN
JUST THE TRADITIONAL EARLYJANUARY BOUNCE IN SMALLCAP PERFORMANCE

THE LONGTERM BULLISH CASE FOR SMALL CAPS IS STILL VERY SOLID SAYS DAVID
BOSTIAN CHIEF ECONOMIST AND MARKET STRATEGIST AT BROKERS HERZOG HEINE
GEDULD IN NEW YORK SMALL CAPS HAVE BEEN DOING MUCH BETTER RELATIVE TO THE
S&P 500 SINCE LATE 1990 WITH A FEW PERIODS OF MINOR LAGGARD BEHAVIOR I
THINK WE'LL SEE A LOT OF NEW MONEY GOING INTO THE SECTOR

CONVENTIONAL WISDOM HOLDS THAT BULL MARKET CYCLES IN SMALL STOCKS LAST FIVE
TO SEVEN YEARS HENCE THE CURRENT RALLY SHOULD BE SECURELY IN MIDSTRIDE
BUT THAT'S SCANT COMFORT TO THOSE WORRIED ABOUT A SUDDEN ABOUTFACE IN WHAT
IS OFTEN A VOLATILE MARKET SUCH WORRIES HAVE BEEN JUSTIFIED IN PREVIOUS
CYCLES INDEED SMALL CAPS HISTORICALLY HAVE OUTSHONE THEIR BIGGER BRETHREN
ONLY WHEN MIDCAP AND LARGECAP STOCKS WERE ON AN UPWARD TREND WHEN THE BIG
GUYS HAVE STUMBLED SMALLCAP STOCKS WITH THEIR THINNER MARKETS 
TRADITIONALLY HAVE FALLEN HARDER AND FOR LONGER PERIODS OF TIME IF AND WHEN
THE BROAD MARKET STUMBLES ANALYSTS SUCH AS MR BOSTIAN ARE GOING TO KEEP A
CLOSE EYE ON SMALL STOCKS FOR CLUES ABOUT HOW STRONG THE MARKET FOR THOSE
ISSUES IS

MY GUESS IS THAT WE'RE VERY CLOSE TO AN INTERMEDIATE CORRECTION IN THE
BROADER MARKET HE SAYS ONE IMPORTANT CLUE TO THE CONTINUATION OF
SMALLCAP LEADERSHIP WILL BE SUPERIOR PERFORMANCE BY THE RUSSELL 2000 DURING
THIS FORTHCOMING DECLINE HE'S LOOKING FOR SMALLCAP STOCKS TO RETREAT LESS
THAN BIG ISSUES THAT WOULD SHOW REAL MARKET STRENGTH FOR THE LONG TERM
HE SAYS

THE RUSSELL 2000 TRACKS THE PERFORMANCE OF SOME 2000 SMALLCAP STOCKS WITH
MARKET VALUATIONS BETWEEN ROUGHLY 60 MILLION AND 590 MILLION TRADED ON
THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES

FOR THOSE LOOKING FOR REASSURANCE THAT THE GOOD TIMES IN SMALL CAPS ARE HERE
TO STAY HERE ARE SOME POINTS THAT SHOULD BE KEPT IN MIND

 SMALLSTOCK VALUATIONS IN RELATION TO PROJECTED EARNINGS GROWTH ARE
WELL BELOW HISTORIC HIGHS A KEY FACTOR IN A MARKET THAT HAS BEEN DRIVEN
LARGELY BY EARNINGS MOMENTUM

 SMALLCAP MARKET LEADERS INCLUDING TECHNOLOGY BIOTECH AND SELECTIVE
HEALTHCARE STOCKS SEEM SET TO POWER AHEAD AFTER A YEAR OF INTERMITTENT
JITTERS WHILE SOME PROMISING BUT HIGHLY SPECULATIVE SECTORS LIKE WIRELESS
COMMUNICATIONS WILL NEED TO PROVE THEY CAN DELIVER

TECHNOLOGY STOCKS WHICH TOOK A BEATING IN NOVEMBER WHEN THE OVERALL RUSSELL
2000 DROPPED 34 SEEM TO HAVE WEATHERED A LONGAWAITED CORRECTION WHILE
BEATENUP HEALTH STOCKS APPEAR TO BE MAKING A COMEBACK ON A GROWING SENSE
THAT A HEALTHCARE REFORM PACKAGE IS STILL A LONG WAY OFF AND SAY SOME
THE MILD CORRECTION IN THE HOT TECHNOLOGY SECTOR WAS JUST WHAT THE MARKET
NEEDED

IF A SHORT SHARP CORRECTION IS ENOUGH TO BLOW THE FLUFF OUT OF THE MARKET
I'D RATHER HAVE THAT THAN A LONG DRAWNOUT ONE SAYS CLAUDIA MOTT
DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES IN NEW YORK

OVERALL MS MOTT THINKS SMALL STOCKS ARE RELATIVELY CHEAP AND ARE GOING TO
CONTINUE TO OUTPERFORM THE MARKET SPECIFICALLY SHE NOTES THAT SMALLCAP
STOCKS ARE TRADING AT A LOWER PRICEEARNINGS MULTIPLE IN RELATION TO
ESTIMATED LONGTERM EARNINGS GROWTH RATES THAN LARGECAP COMPANIES

VALUATIONS ARE STILL VERY ATTRACTIVE BUT I DON'T THINK VALUATIONS ALONE
CAN CARRY THIS CYCLE MS MOTT SAYS FUNDAMENTALS SHOULD ALSO PROVE
SUPPORTIVE THIS YEAR SHE ADDS IN TERMS OF FIRSTHALF EARNINGS REPORTS
PEOPLE WILL BE LOOKING FOR GOOD FIRST AND SECOND QUARTERS BECAUSE WE HAD
SUCH A STRONG ECONOMY IN THE FOURTH QUARTER WHAT'S MORE WE HAVEN'T GOTTEN
ANY DAMAGING INTEREST RATE NEWS

PERSHARE EARNINGS OF THE RUSSELL 2000 COMPANIES ARE EXPECTED TO GROW 23
THIS YEAR WELL ABOVE THE 16 PROJECTED GROWTH FOR BIGCAP COMPANIES
ACCORDING TO ESTIMATES BY FRANK RUSSELL CO OF TACOMA WASH BUT ANY FAILURE
TO MEET EARNINGS EXPECTATIONS WILL RESULT IN DRUBBINGS OF INDIVIDUAL STOCKS
AS HAS BEEN THE CASE IN RECENT WEEKS MS MOTT AND OTHERS EMPHASIZE

JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST FOR CS FIRST BOSTON IS
LOOKING FOR THE WIDENED MARGIN BETWEEN CAPITAL GAINS TAXES AND ORDINARY
INCOME TAXES TO GIVE SMALL STOCKS A POWERFUL BOOST THIS YEAR CERTAINLY
THAT'S BEEN THE CASE IN THE PAST WHEN ORDINARY INCOME HAS BEEN TAXED MORE
HEAVILY THAN CAPITAL GAINS AND MR APPLEGATE SUGGESTS THAT TAX POLICY MAY
BE A MORE POTENT INFLUENCE ON THE PERFORMANCE OF SMALL STOCKS THAN ANY OTHER
SINGLE FACTOR

SMALL CAPS ONLY BEGAN OUTPERFORMING IN LATE 1990 HE SAYS AND THAT'S
BECAUSE THE CAPITAL GAINS TAX RATE WAS RISING UNTIL 1990

STILL MR BOSTIAN THE HERZOG HEINE GEDULD ECONOMIST SAYS GOVERNMENT
POLICY MIGHT BE A MIXED BAG IN THE END FOR SMALLCAP STOCKS THIS YEAR

THE QUESTION IS WHETHER BENEFITS TO SMALLCAP INVESTORS FROM CAPITAL GAINS
WILL MORE THAN OFFSET THE POTENTIAL DAMAGE TO THE EARNINGS OF SMALLCAP
COMPANIES THAT WILL RESULT FROM THE HEALTHCARE REFORMS HE SAYS NOBODY
KNOWS EXACTLY HOW SUCCESSFUL THE ADMINISTRATION WILL BE IN GETTING ITS
HEALTHCARE COSTCUTTING MANDATES THROUGH CONGRESS

PROPELLED BY THE OUTLOOK FOR HEALTHY FOURTHQUARTER EARNINGS SMALLCOMPANY
STOCKS CONTINUED TO RALLY WITH KEY INDEXES AGAIN CLOSING AT RECORD LEVELS

THE RUSSELL 2000 INDEX OF SMALLCAP STOCKS TRADED ON THE NASDAQ STOCK MARKET
AND THE MAJOR EXCHANGES ROSE 063 OR 02 TO 26127 ITS THIRD STRAIGHT
RECORD CLOSE THE NASDAQ COMPOSITE INDEX WAS UP 450 OR 06 AT 79231
ITS SECOND CONSECUTIVE RECORD CLOSE

ON NASDAQ GAINERS FINISHED AHEAD OF DECLINERS 1723 TO 1365 TOTAL NASDAQ
VOLUME WAS 298 MILLION SHARES COMPARED WITH 290 MILLION ON THURSDAY WHILE
NATIONAL MARKET VOLUME WAS 258 MILLION SHARES COMPARED WITH 247 MILLION

AMONG THE MOST ACTIVE OF THE TOP SMALLCOMPANY GAINERS WAS SKOLNIKS WHICH
WAS UP 1 1/8 OR 88 TO 13 7/8 ON NEWS THAT THE COMPANY REACHED AGREEMENTS
WITH TWO DISTRIBUTORS THAT MORE THAN DOUBLE THE NUMBER OF SUPERMARKETS AND
CONVENIENCE STORES TO WHICH ITS BAGELS WILL BE DELIVERED THE COMPANY SAID
2400 LOCATIONS ARE BEING ADDED THROUGH AN AGREEMENT WITH WALMART'S MCLANE
DISTRIBUTION DIVISION AND 1200 MORE LOCATIONS THROUGH COREMARK
INTERNATIONAL A CLOSELY HELD DISTRIBUTOR BASED IN SAN FRANCISCO

PRECISION SYSTEMS WAS ONE OF THE BIGGEST SMALLCAP LOSERS OF THE DAY
DROPPING 1/4 OR 62 TO 3 3/4 THE DECLINE CAME AFTER THE COMPANY REPORTED
A LOSS OF 41 CENTS A SHARE FOR ITS FIRST QUARTER ENDED NOV 30 COMPARED
WITH THE YEAREARLIER NET OF THREE CENTS A SHARE

NATIONAL MEDIA ROSE 2 OR 24 TO 10 1/4 AFTER IT CONFIRMED THAT IT RECEIVED
A 10ASHARE PROPOSAL FROM VALUEVISION INTERNATIONAL FOR STOCK THAT WOULD
GIVE VALUEVISION A 501 STAKE IN THE COMPANY

BALTIMORE BANCORP ROSE 1 3/4 OR 11 TO 17 3/8 AFTER THE COMPANY CONFIRMED
IT IS IN TALKS WITH SEVERAL BANK HOLDING COMPANIES REGARDING THE POSSIBLE
SALE OF THE COMPANY THE GAIN FOLLOWED THURSDAY'S 12 INCREASE

LARRY BAUMAN CONTRIBUTED TO THIS ARTICLE 9401170129 940117 WALMART
AGREES TO BUY WOOLCO STORES IN CANADA FROM WOOLWORTH CORP UNIT  
BY WALL STREET JOURNAL REPORTERS BOB ORTEGA IN DALLAS PATRICK M REILLY
IN NEW YORK AND LARRY M GREENBERG IN TORONTO

WALMART STORES INC EVER ON THE PROWL FOR GROWTH ENTERED THE CANADIAN
MARKET BY AGREEING TO ACQUIRE ABOUT 120 WOOLCO STORES IN THAT COUNTRY FROM
WOOLWORTH CORP'S CANADIAN SUBSIDIARY

TERMS WEREN'T DISCLOSED ALTHOUGH WOOLWORTH SAID IT EXPECTS THE SALE TO
GENERATE ABOUT 300 MILLION IN CASH

ANALYSTS GREETED THE MOVE AS GOOD NEWS FOR BOTH COMPANIES SAYING IT GIVES
WALMART MORE THAN 14 MILLION SQUARE FEET OF RETAIL SPACE IN AN IMPORTANT
NEW MARKET AND ACCELERATES NEW YORKBASED WOOLWORTH'S PLAN TO FLEE
MASSMARKET RETAILING FOR THE RELATIVELY MORE PROFITABLE AREA OF SPECIALTY
RETAILING

IN CANADA THE NEWS IGNITED FEARS OF A PRICE WAR IN AN INDUSTRY ALREADY
BATTERED BY THE WEAK ECONOMY INVESTORS RAVAGED THE STOCKS OF CANADIAN
RETAILERS THAT WILL COMPETE DIRECTLY WITH WALMART THE LARGEST RETAILER IN
THE US HUDSON'S BAY CO WHICH OWNS CANADA'S BIGGEST DISCOUNTSTORE CHAIN
ZELLERS LOST 4875 CANADIAN DOLLARS US369 OR 12 TO C35 ON THE
TORONTO STOCK EXCHANGE ON FRIDAY CANADIAN TIRE CORP WHICH SELLS HARDWARE
SPORTING GOODS AND AUTOMOTIVE REPAIR SERVICES FELL 10 TO C14625 DOWN
C1625 WISE STORES INC FELL 175 TO C5 DOWN 875 CANADIAN CENTS ON THE
MONTREAL EXCHANGE

WHILE SOME ANALYSTS CALLED THE DECLINES AN OVERREACTION SEVERAL SAID THEY
WILL TRIM EARNINGS FORECASTS FOR A NUMBER OF CANADIAN RETAILERS IT'S
DIRECT COMPETITION TO ZELLERS THERE IS GOING TO BE MARKET SHARE LOSS
ACROSSTHEBOARD SAID MARILYN BROPHY ANALYST AT LEVESQUE BEAUBIEN
GEOFFRION INC

FOR WALMART THE MOVE INTO CANADA COMES ON THE HEELS OF ITS SUCCESSFUL
ENTRY INTO THE MEXICAN MARKET ANALYSTS ESTIMATE THAT SOME OF WALMART'S
MEXICAN STORES ARE EXCEEDING 100 MILLION A YEAR EACH IN SALES WELL ABOVE
THE COMPANY'S US AVERAGE IT'S EXTREMELY IMPORTANT WE POSITION OURSELVES
TO BE THE DOMINANT RETAILER IN NORTH AMERICA NOT JUST IN THE UNITED STATES
AND THAT'S WHAT WE'RE DOING SAID DAVID GLASS WALMART CHAIRMAN AND CHIEF
EXECUTIVE OFFICER

MR GLASS SAID THE COMPANY EXPECTS TO MODERNIZE THE UNITS WHICH AVERAGE
118000 SQUARE FEET AND CONVERT THEM INTO WALMART STORES WITHIN A YEAR AS
A RESULT OF THE CANADIAN ACQUISITION MR GLASS SAID WALMART WILL SCALE
BACK 1994 US STORE OPENINGS TO ABOUT 125 FROM THE PREVIOUSLY PLANNED 150

WALMART SAID IT WILL HIRE SUBSTANTIALLY ALL OF THE WOOLCO EMPLOYEES IN
THE ACQUIRED STORES AND EXPECTS TO HIRE OTHER WOOLWORTH CANADA EMPLOYEES
R BRUCE WEST PRESIDENT AND CHIEF OPERATING OFFICER OF WOOLWORTH CANADA'S
WOOLCO DIVISION WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF WALMART'S
CANADIAN OPERATIONS

JEFFREY FEINER AN ANALYST AT SALOMON BROS INC SAID THE WOOLCO STORES
POSTED ABOUT 13 BILLION IN SALES LAST YEAR AND PREDICTED THAT WALMART
WILL BE ABLE TO SIGNIFICANTLY IMPROVE THOSE RESULTS HOWEVER WALMART
SAID THAT BECAUSE OF THE TIME AND EXPENSE OF CONVERSION IT DOESN'T EXPECT
THE ACQUISITION TO ADD TO EARNINGS FOR THE YEAR ENDING JAN 31 1995

WILLIAM K LAVIN WOOLWORTH'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE SALE OF
THE CANADIAN WOOLCO STORES WOULD ALLOW THE RETAILER TO FOCUS OUR RESOURCES
ON THE SPECIALTY BUSINESSES THAT PROVIDE THE HIGHEST RETURNS TO OUR
SHAREHOLDERS LAST YEAR THE COMPANY SAID IT WOULD CLOSE ABOUT 450 OF ITS
FW WOOLWORTH VARIETY STORES AND ABOUT 300 KINNEY SHOE STORES WHILE
CONTINUING TO EXPAND ITS SPECIALTY FORMATS WOOLWORTH SAID IT WOULD CLOSE
SELL OR CONVERT TO OTHER FORMATS THE 22 WOOLCO STORES WALMART DECIDED NOT
TO ACQUIRE AND WILL CONTINUE TO OPERATE MORE THAN 1400 STORES IN CANADA
INCLUDING SPECIALTY STORES UNDER SUCH NAMES AS FOOT LOCKER NORTHERN
REFLECTIONS AND BARGAIN SHOP

FOR THE THIRD QUARTER ENDED OCT 30 WOOLWORTH REPORTED A LOSS OF 452
MILLION OR 343 A SHARE AFTER A 480 MILLION CHARGE FOR CLOSING OR
CHANGING THE FORMATS OF ABOUT 970 LARGELY UNPROFITABLE STORES

WOOLWORTH SAID THE SALE TO WALMART WILL RESULT IN A NONCASH CHARGE TO NET
INCOME OF ABOUT 45 MILLION OR 34 CENTS A SHARE BECAUSE OF THE RECOGNITION
OF FOREIGN CURRENCY TRANSLATION LOSSES THAT HAD PREVIOUSLY BEEN CHARGED TO
THE FOREIGN CURRENCY ACCOUNT IN SHAREHOLDERS' EQUITY THE COMPANY SAID IT
HADN'T DECIDED YET TO WHICH QUARTER THE CHARGE WOULD BE APPLIED WALMART
SAID THAT SUBJECT TO CANADIAN REGULATORY APPROVAL IT EXPECTS TO COMPLETE
THE ACQUISITION BY THE BEGINNING OF MARCH

WALMART'S MAJOR COMPETITORS IN CANADA WILL INCLUDE THE ZELLERS CHAIN AS
WELL AS KMART CORP WHICH RECENTLY ANNOUNCED PLANS TO ENLARGE ITS 127 KMART
STORES IN CANADA MOST OF WHICH ARE DECADES OLD AND RELATIVELY SMALL BY
THE END OF 1996

BECAUSE OF CANADA'S HIGHER WAGES AND TAXES INDUSTRY OBSERVERS DON'T EXPECT
WALMART TO PRICE ITS GOODS AS LOW AS IT DOES IN THE US ALTHOUGH THEY
EXPECT AGGRESSIVE PRICING EARLY ON AS WALMART ATTEMPTS TO BUILD ITS
CUSTOMER BASE

IN NEW YORK STOCK EXCHANGE TRADING FRIDAY WOOLWORTH ROSE 50 CENTS TO
25625 AND WALMART SHARES ROSE 125 CENTS TO 25625 9401170128 940117
NESTLE DENIES RUMORS IT PLANS TO QUIT MEXICO  SPECIAL TO THE WALL
STREET JOURNAL

VEVEY SWITZERLAND NESTLE SA THE BIG SWISS FOODS CONCERN DENIED RUMORS
CIRCULATING IN MEXICO THAT IT PLANS TO PULL OUT OF THAT COUNTRY

UTTER BALONEY SAID A SPOKESMAN FRIDAY THE RUMOR OF A PULLBACK IS
RIDICULOUS THE COMPANY OPERATES 15 FACTORIES IN MEXICO AND HAD TOTAL 1992
SALES OF THE EQUIVALENT OF 17 BILLION SWISS FRANCS 115 BILLION THERE

THE PULLBACK RUMOR IS RELATED TO A STRIKE BY 2000 NESTLE WORKERS IN MEXICO

THE ISSUE CENTERS ON STRUCTURING OUR STAFF IN A MORE COMPETITIVE WAY IT
HAS NOTHING TO DO WITH MAJOR LAYOFFS THE SPOKESMAN SAID HE ADDED THAT THE
SITUATION HAD TO DO PARTLY WITH CHANGING WORK RULES MORE FLEXIBLE
FACTORIES MAKING THEM MORE ADAPTABLE

ACCORDING TO THE NESTLE SPOKESMAN THE LABOR DISPUTE ALSO HAS NOTHING TO DO
WITH SALARIES OR SOCIAL BENEFITS NESTLE'S EMPLOYEES ARE THE BEST PAID IN
THE MEXICAN FOOD INDUSTRY AND RECEIVE PAY AND BENEFITS THAT RANK THEM IN
THE TOP LEVEL GENERALLY IN THE COUNTRY ONE MUSTN'T FORGET THAT IN MEXICO
THERE IS NOW A CERTAIN CLIMATE OF UNCERTAINTY AND WE DON'T EXCLUDE THAT THIS
PLAYED A ROLE IN THE DECISION OF UNIONS TO GO ON STRIKE HE ADDED

THE LABOR DISPUTE BEGAN DEC 7 AND NESTLE CONCEDES IT COULD CREATE PROBLEMS
IF IT BECOMES DRAWN OUT IF WE CAN'T PRODUCE INEVITABLY WE WILL HAVE
PROBLEMS PUTTING STUFF ON THE SHELVES THE SPOKESMAN SAID

NESTLE SAID IT HAS ASKED FEDERAL MEDIATORS IN MEXICO TO LOOK AT THE MATTER
AND THE COMPANY IS HOPEFUL A SOLUTION CAN BE FOUND 9401170127 940117
MANAGER'S JOURNAL REDUCING HEALTH CARE LITIGATION COSTS  BY JAMES
F HENRY

LAST SPRING TWO MAJOR MEDICALEQUIPMENT MANUFACTURERS WERE LOCKED IN A 30
MILLION PATENT INFRINGEMENT BATTLE OVER A TESTING DEVICE ALREADY THEY HAD
SPENT ONE YEAR AND SEVERAL HUNDRED THOUSAND DOLLARS IN PRETRIAL WORK TO
RESOLVE THE ISSUE THROUGH THE COURTS THE PARTIES FACED THE PROSPECT OF AN
ADDITIONAL 18 MONTHS AND AT LEAST 5 MILLION IN LITIGATION COSTS A FEDERAL
JUDGE SUGGESTED MEDIATION WITH THE HELP OF A HIGHLY QUALIFIED NEUTRAL THEY
RESOLVED THE MATTER IN LESS THAN TWO DAYS

MANAGERS OF HEALTHRELATED COMPANIES MUST CONTEND WITH THE SAME BROAD RANGE
OF BUSINESS DISPUTES THAT CONFRONT THEIR COUNTERPARTS IN OTHER INDUSTRIES 
INCLUDING INTELLECTUAL PROPERTY CONSTRUCTION PRODUCT LIABILITY AND
EMPLOYMENT ISSUES HOWEVER AN OVERHAUL OF THE HEALTH SYSTEM INVITES A FLOOD
OF NEW LITIGATION IF THE CLINTON PLAN PASSES IN ANYTHING LIKE ITS CURRENT
FORM THESE SUITS MIGHT INCLUDE NEW INSURER CHALLENGES TO THE REGULATION OF
PREMIUMS AND OBJECTIONS BY DRUG COMPANIES AND PHYSICIANS TO PRICING LIMITS
PRIVATE ANTITRUST ACTIONS WOULD UNDOUBTEDLY INCREASE IF HEALTH CARE BECOMES
A FEDERALLY PROTECTED RIGHT CONSUMERS AND REGIONAL ALLIANCES MIGHT BRING
CLAIMS AGAINST FEDERAL AND STATE AGENCIES

THE COURTS LIMITED IN CAPACITY AND FUNDING ARE ILL PREPARED FOR THE
INCREASED BURDEN IN SOME PARTS OF THE NATION CIVIL COURT DOCKETS ALREADY
ARE DELAYED BY AS MUCH AS FIVE YEARS WHILE CRITICAL POLICY AND
CONSTITUTIONAL ISSUES SHOULD BE RESOLVED THROUGH THE COURTS ALTERNATIVE
DISPUTE RESOLUTION ADR IS A BETTER LOWERCOST WAY TO HANDLE MANY ISSUES
THAT ARE EMERGING FROM HEALTH CARE REFORM

THE USE OF NONBINDING ADR PROCESSES HAS ADVANTAGES NOT AVAILABLE IN THE
COURTS FOR INSTANCE HIGHLY QUALIFIED SCIENTIFIC OR TECHNICAL EXPERTS CAN
HELP RESOLVE TECHNICALLY DIFFICULT MEDICAL DISPUTES OR RENDER EXPERT
NONBINDING OPINIONS DISPUTES CAN BE RESOLVED PROMPTLY OFTEN IN A MATTER
OF DAYS OR WEEKS RATHER THAN MONTHS OR YEARS A HIGHLY SKILLED INNOVATIVE
MEDIATOR CAN HELP PARTIES ACHIEVE ADVANTAGEOUS BUSINESS RESULTS AND
FREQUENTLY RETAIN IMPORTANT BUSINESS RELATIONSHIPS

IN COLLABORATION WITH A COMMITTEE OF HEALTH LAW SPECIALISTS REPRESENTING
MANAGED CARE ORGANIZATIONS HOSPITALS PHYSICIANS AND MEDICAL PRODUCT
MANUFACTURERS THE CENTER FOR PUBLIC RESOURCES HEALTH DISPUTES PROJECT
RECENTLY EXAMINED 59 CATEGORIES OF DISPUTES THAT HAVE BOTH LARGE EXCESS
COSTS AND THE POTENTIAL FOR RESOLUTION THROUGH ADR A RESULTING PUBLICATION
GIVES HEALTH INDUSTRY COUNSEL A BROAD RANGE OF MODEL ADR PROCEDURES THAT CAN
BE USED TO ADDRESS INDUSTRY CONFLICTS INCLUDING MODELS SPECIALLY DESIGNED
FOR MANAGED CARE AND DISAFFILIATION DISPUTES

WHILE NONBINDING ADR IS LARGELY UNTAPPED IN THE HEALTH INDUSTRY AS A DISPUTE
RESOLUTION MECHANISM A FEW HEALTH INSTITUTIONS ARE LEADING THE WAY

 BOSTON UNIVERSITY'S SCHOOL OF PUBLIC HEALTH IS TRAINING DOCTORS NURSES
AND ADMINISTRATORS IN NEGOTIATION AND MEDIATION SKILLS TO BETTER HANDLE
CONFLICTS WITHIN HOSPITAL SETTINGS

 A NATIONWIDE GROUP OF HEALTH INSURERS HAS AGREED TO RESOLVE THROUGH
MEDIATION OR ARBITRATION INSTEAD OF LITIGATION ANY TERRITORY OR LICENSING
DISPUTES THAT MAY ARISE AMONG ITS MEMBERS

 THE NATION'S BLOOD BANKS ARE ADOPTING ADR TO MINIMIZE THE COSTS AND
DISRUPTION OF LITIGATION FOR PEOPLE INFECTED WITH TRANSFUSIONASSOCIATED HIV
AND THEIR FAMILIES

 STANFORD UNIVERSITY HOSPITAL USES AN OMBUDSMAN'S OFFICE THAT COMBINES
IMPROVED COMMUNICATION AND MEDIATION TO RESOLVE DISPUTES AMICABLY BETWEEN
STUDENTS OR EMPLOYEES AND THE HOSPITAL

 A MEDICAL COOPERATIVE IN THE NORTHWESTERN US USES A PRIVATE MEDIATION
PROCESS FOR PATIENT MALPRACTICE CLAIMS WHILE MEDIATION IS NOT OFFERED IN
EVERY CASE AT LEAST 40 OF THE CLAIMS ARE BEING SUBMITTED TO THE SYSTEM
WITH A 50 SETTLEMENT SUCCESS RATE

 A LARGE PHARMACEUTICAL COMPANY ENGAGES HIGHLY QUALIFIED NEUTRAL PARTIES
TO HELP RESOLVE CONTRACT AND PATENT DISPUTES VARIOUS DRUG MANUFACTURERS
HAVE EMPLOYED MEDIATION AND ADVISORY ARBITRATION IN CONSUMER INJURY CASES
AND SEVERAL HAVE INCORPORATED ADR CLAUSES IN SUPPLY CONTRACTS AND LIABILITY
INSURANCE POLICIES

 NEW YORK CITY'S COMMISSION ON HUMAN RIGHTS HANDLED 80 OF ITS 1700
AIDSRELATED COMPLAINTS IN THE 1980S THROUGH EARLY INTERVENTION NEGOTIATION
AND MEDIATION

USE OF ADR BY HEALTH INDUSTRY ORGANIZATIONS NEED NOT WAIT FOR HEALTH CARE
REFORM OR CONGRESSIONAL ACTION HEALTH MANAGERS AND COUNSEL HAVE A UNIQUE
OPPORTUNITY TO HELP BRING ABOUT MEANINGFUL COST REDUCTIONS WITHIN THEIR OWN
ORGANIZATIONS IN THE PROCESS THEY CAN PLAY A ROLE IN REFORMING NATIONAL
HEALTH CARE

MR HENRY IS PRESIDENT OF THE NEW YORKBASED CPR LEGAL PROGRAM A NONPROFIT
ALLIANCE OF LAWYERS AND ACADEMICS DEVELOPING ALTERNATIVES TO LITIGATION
9401170126 940117 THYSSEN STAHL TO CUT 1250 ADDITIONAL JOBS  
SPECIAL TO THE WALL STREET JOURNAL

DUISBURG GERMANY THYSSEN STAHL THE STEELMAKING DIVISION OF THYSSEN AG
SAID IT WOULD CUT A FURTHER 1250 JOBS IN 1994 CITING 1993 FOURTHQUARTER
LOSSES

THE COMPANY ANNOUNCED PREVIOUSLY THAT IT WOULD CUT 10000 OF A TOTAL OF
35000 JOBS IN ITS STEEL OPERATIONS

THYSSEN STAHL BLAMED CATASTROPHIC LOSSES IN THE LAST QUARTER OF 1993 AND
THE DECISION BY THE EUROPEAN UNION TO ALLOW CONTINUED SUBSIDIES TO STATE
STEEL COMPANIES FOR THE DECISION TO SLASH JOBS

A SPOKESMAN FOR THYSSEN STAHL WOULDN'T SUPPLY SPECIFIC LOSS FIGURES FOR THE
FOURTH QUARTER OR THE YEAR

THE COMPANY SAID ITS DIRE FISCAL SITUATION WOULD PREVENT IT FROM EASING THE
BLOW FROM THE LAYOFFS THROUGH VOLUNTARY EARLY RETIREMENT PROGRAMS

WE JUST DON'T HAVE THE MONEY ANYMORE THE SPOKESMAN SAID HOWEVER HE
ADDED THAT THE COMPANY WAS IN TALKS WITH THE GERMAN STATE OF NORTH
RHINEWESTPHALIA ON WHAT COULD BE DONE FOR THE STEELWORKERS WHO LOSE THEIR
JOBS

THYSSEN AG'S LARGEST SINGLE AREA IS STEEL BUT IT ALSO HAS EXTENSIVE
OPERATIONS IN TRADING AND SERVICES STAMPING AND CASTING MACHINE ELEVATOR
AND ESCALATORBUILDING AND OTHER ENGINEERING PRODUCTS 9401170125 940117
ITALY'S IRI ANNOUNCES SALE OF STAKE IN BANCA COMMERCIALE ITALIANA 
 SPECIAL TO THE WALL STREET JOURNAL

MILAN ITALIAN STATEOWNED HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE
INDUSTRIALE ANNOUNCED IT WOULD SELL 500 MILLION SHARES IN BANCA COMMERCIALE
ITALIANA

THE PRICE WILL BE ANNOUNCED CLOSER TO THE TIME OF FLOTATION ON FEB 28 IRI
SAID IT IS EXPECTED THE SELLOFF WILL RAISE ABOUT 24 TRILLION LIRE 141
BILLION FOR IRI BEFORE FEES

IRI SAID 40 OF THE OFFERING OR ABOUT 200 MILLION SHARES WILL GO TO
ITALIAN RETAIL INVESTORS WITH A CORRESPONDING NUMBER ALLOTTED TO
INSTITUTIONS

IT ALSO WILL OFFER 40 MILLION SHARES TO BCI EMPLOYEES AND 40 MILLION SHARES
WILL GO TOWARD AN OVERALLOTTMENT OPTION IF THE OFFER IS OVERSUBSCRIBED

THE REST WILL GO IN A BONUSSHARE OPTION WORTH ONE SHARE FOR EVERY 10 HELD
IF SHAREHOLDERS RETAIN THEIR STOCK FOR AT LEAST THREE YEARS

THE BCI SALE HAD BEEN BROUGHT FORWARD AFTER A SUCCESSFUL SELLOFF LAST MONTH
OF CREDITO ITALIANO ANOTHER ITALIAN RETAIL BANK FOLLOWING STRONG DOMESTIC
DEMAND

A SINGLE SHAREHOLDING IN BCI WILL BE LIMITED TO 1 OF THE BANK OR 105
MILLION SHARES WHILE INSTITUTIONS CAN TAKE AS MUCH AS 2 OF THE ISSUE

IRI ITALY'S LARGEST EMPLOYER CURRENTLY OWNS 459 OF BCI WHILE THE REST IS
FLOATED ON THE MILAN STOCK EXCHANGE BCI SHARES CLOSED AT 4775 LIRE OFF 65
LIRE 9401170124 940117 WHO'S NEWS EASTMAN KODAK CO

EASTMAN KODAK CO ROCHESTER NY STEVEN G STAVES FORMERLY VICE
PRESIDENT OF MARKETING FOR THE CONSUMER HEALTH GROUP OF THIS COMPANY'S
STERLING WINTHROP INC UNIT WAS NAMED PRESIDENT OF STERLING HEALTH USA THE
US CONSUMER HEALTH PRODUCTS DIVISION OF STERLING WINTHROP HE SUCCEEDS
DOUGLAS L MEYER WHO RESIGNED FROM THE COMPANY TO PURSUE OTHER INTERESTS
STERLING WINTHROP DEVELOPS MAKES AND MARKETS PHARMACEUTICALS AND CONSUMER
HEALTH PRODUCTS EASTMAN KODAK IS A PHOTOGRAPHY HEALTHCARE PRODUCTS AND
CHEMICALS CONCERN 9401170123 940117 BUSINESS BRIEF INTERNATIONAL
BUSINESS MACHINES FEDERAL SYSTEMS UNIT GETS CONTRACT FOR MAIL SORTERS

IBM FEDERAL SYSTEMS CO SAID IT WON A 1548 MILLION CONTRACT TO BUILD AND
INSTALL 3144 AUTOMATED MAIL SORTERS FOR THE US POSTAL SERVICE

THE INTERNATIONAL BUSINESS MACHINES CORP SUBSIDIARY WHICH SPECIALIZES IN
SOFTWARE FOR SENSORS AND COMMUNICATIONS DEVICES WILL INSTALL THE DEVICES IN
POST OFFICES THROUGHOUT THE COUNTRY OVER THE NEXT 28 MONTHS

IBM RECENTLY SIGNED A DEFINITIVE AGREEMENT TO SELL ITS FEDERAL SYSTEMS
DIVISION TO LORAL CORP FOR 156 BILLION 9401170122 940117 BUSINESS
BRIEF GENESCO INC EXPECTS FOURTHQUARTER LOSS STOCK PRICE FALLS 15

NASHVILLE TENN GENESCO INC IN THE WAKE OF WEAKERTHANEXPECTED
HOLIDAY SALES SAID IT EXPECTS TO REPORT A LOSS FOR ITS FISCAL FOURTH
QUARTER

THE NEWS HELPED PUSH THE COMPANY'S STOCK DOWN 15 IN COMPOSITE TRADING
FRIDAY ON THE NEW YORK STOCK EXCHANGE GENESCO CLOSED AT 4375 OFF 75
CENTS A SHARE

IN THE YEAREARLIER FOURTH QUARTER ENDED JAN 31 1993 THE FOOTWEAR AND
CLOTHING CONCERN HAD NET INCOME OF 36 MILLION OR 15 CENTS A SHARE ON
REVENUE OF 1508 MILLION THAT INCLUDED A CHARGE OF 583000 OR TWO CENTS
A SHARE FOR EARLY RETIREMENT OF DEBT

GENESCO HAD INDICATED IT WOULD POST A LOSS FOR FISCAL 1994 IN FISCAL 1993
IT REPORTED EARNINGS OF 91 MILLION OR 38 CENTS A SHARE ON REVENUE OF
5399 MILLION

GENESCO SAID THE SALES SHORTFALL DURING THE HOLIDAYS RESULTED IN DEEP PRICE
CUTS AND UNDERUTILIZATION OF THE COMPANY'S MANUFACTURING CAPACITY AS A
RESULT IT SAID IT IS CONSIDERING CLOSING UNPROFITABLE RETAIL STORES
CUTTING BACK MANUFACTURING CAPACITY AND REDUCING OVERHEAD EXPENSES

THE SIZE OF ITS FOURTHQUARTER LOSS WILL DEPEND ON THOSE ACTIONS THE
COMPANY SAID

SEPARATELY GENESCO NAMED HARRY D GARBER 64 YEARS OLD CHAIRMAN OF THE
BOARD EFFECTIVE JAN 31 MR GARBER SERVED AS VICE CHAIRMAN OF EQUITABLE
LIFE ASSURANCE SOCIETY OF THE US A UNIT OF EQUITABLE COS UNTIL LAST
YEAR HE HAS BEEN A GENESCO DIRECTOR SINCE 1976 HE SUCCEEDS WILLIAM S WIRE
II 62 WHOSE TERM AS CHAIRMAN EXPIRES JAN 31 MR WIRE WILL REMAIN A
DIRECTOR AND CONSULTANT TO GENESCO 9401170121 940117 INTERNATIONAL BRIEF
 GENERAL MOTORS CORP ADAM OPEL UNIT TO SHORTEN WORK SHIFTS IN FIRST
PERIOD

ADAM OPEL AG THE GERMAN SUBSIDIARY OF GENERAL MOTORS CORP PLANS SHORTENED
WORK SHIFTS IN THE FIRST QUARTER TO REDUCE PRODUCTION

THE SHORT SHIFTS WILL APPLY TO THREE PLANTS BUT NOT TO THE FLAGSHIP PLANT
IN RUESSELSHEIM WHERE THE OMEGA VECTRA AND CALIBRA MODELS ARE BUILT

IN BOCHUM WHERE THE COMPANY BUILDS ITS POPULAR ASTRA MODEL SIX DAYS OF
SHORT SHIFTS IN THE FIRST QUARTER ARE PLANNED IN THE PARTS PLANT AT
KAISERSLAUTERN SEVEN DAYS ARE PLANNED OPEL SAID IN THE EASTERN GERMAN
PLANT IN EISENACH WHERE OPEL MANUFACTURES CORSA AND ASTRA THREE DAYS ARE
PLANNED 9401170120 940117 BUSINESS BRIEF SPX CORP SEALED POWER
TECHNOLOGIES HOLDING WILL BE INCREASED

SPX CORP MUSKEGON MICH SAID IT AGREED TO ACQUIRE AN ADDITIONAL 49
INTEREST IN SEALED POWER TECHNOLOGIES LTD PARTNERSHIP FROM RIKEN CORP
TOKYO IN A TRANSACTION VALUED AT 239 MILLION

SPX AN AUTOPARTS SUPPLIER ALREADY HOLDS A 49 INTEREST IN SEALED POWER
TECHNOLOGIES WHICH MAKES VEHICLE REPLACEMENT PARTS THE LATEST ACQUISITION
WILL RESULT IN A 100 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS SPX
SAID

THAT CHARGE WILL BE PARTIALLY OFFSET BY AN ESTIMATED 65 MILLION GAIN FROM
THE PREVIOUSLY REPORTED SALE OF SPX'S SEALED POWER REPLACEMENT AND TRUTH
DIVISIONS 9401170119 940117 FROSTY MUGS WINTER OLYMPICS HOSTS ARE
KNOWN FOR SKIING NOT SUNNY DISPOSITION  NORWAY VALLEY PEOPLE'S
IDEA OF FUN IS A HUGE TROLL WITH A WART ON ITS HEAD  NOTHING
EVER HAPPENS HERE'  BY ROGER THUROW AND LEE LESCAZE STAFF
REPORTERS OF THE WALL STREET JOURNAL

LILLEHAMMER NORWAY ONE DAY SEVERAL YEARS AGO DEEP IN RECESSION THE
PEOPLE OF THE GUDBRANDSDALEN VALLEY UNCORKED A BOTTLE OF THEIR
POTATOANDCARAWAY LIBATION CALLED AQUAVIT AND TOOK A HARD LOOK AT
THEMSELVES IT WASN'T A PRETTY SIGHT

WHAT DID THEY SEE THEY SAW LONELY TROLLS THEIR MYTHOLOGICAL MASCOTS WHICH
EVEN THE MOST CHARITABLE NORWEGIANS WOULD DESCRIBE AS UGLY EVIL AND A
LITTLE BIT STUPID THE VALLEY'S RESIDENTS HAD SCULPTED A HUGE CONCRETE TROLL
WITH A HUGE WART ON ITS HEAD THE LARGEST TROLL AND WART IN THE WORLD 
TO ATTRACT TOURISTS TO THE AREA THE BIG TROLL ALAS WASN'T WORKING

THEY SAW AN OMINOUS OIL SHADOW EXTENDING FROM THE NORTH SEA THE OFFSHORE
OIL BOOM WAS ENRICHING COASTAL COUNTIES AND SUCKING THE LIFE OUT OF THE
NORWEGIAN INTERIOR YOUNG WOMEN WERE FLEEING THE VALLEY IN DROVES THE LONG
WINTER NIGHTS WERE NOT ONLY COLD THEY WERE BORING

THEY SAW A RIGID INSULAR CITIZENRY APPROACHING THE 21ST CENTURY WITH ALL
THE ZEST OF A POACHED SALMON ONE OF THE VALLEY'S PROMINENT BUSINESSMEN
STOOD UP AT A TOWN MEETING AND CALLED HIS NEIGHBORS NOSY CHEAP AND
ENVIOUS EVEN THE BUMMEDOUT BREWERY TURNED OFF ITS TAP AND LEFT TOWN

WHAT TO DO GET THE WINTER OLYMPICS SOMEONE SUGGESTED AFTER ALL
LILLEHAMMER IS THE ONLY CITY IN THE WORLD WITH A SKIER IN ITS COAT OF ARMS
THE OLYMPICS WOULD ATTRACT LOTS OF TOURISTS GIVE THE LOCALS SOMETHING TO
LOOK FORWARD TO AND SAVE THE REGION FROM ARCTIC OBLIVION SO GET THE WINTER
OLYMPICS THEY DID

AND THE GUDBRANDSDALEN VALLEY HOST TO THE GAMES AND THE WORLD BEGINNING
FEB 12 HASN'T BEEN THE SAME SINCE

IT'S BEEN A CULTURAL REVOLUTION SAYS TORILL BROCH SEEBERG DIRECTOR OF
PUBLIC RELATIONS FOR THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE OR LOOC
A COMICALLOOKING GIZMO A RED PLASTIC HOOK CONNECTED BY A STRETCH OF
ELASTIC TO A BLUE HOOK DANGLES FROM HER COLLAR MS SEEBERG WRAPS THE
STRING BEHIND HER HEAD AND PLACES THE HOOKS IN THE CORNERS OF HER MOUTH
PULLING HER LIPS INTO A GRIN THE LOOK LOOC WANTS THE WORLD TO SEE IT'S TO
TEACH US TO SMILE SHE SAYS

ONE DAY THE OLYMPICS WILL FACE A TRULY COLOSSAL IMAGEMAKEOVER CHALLENGE
LIKE SAY CHINA BUT FOR THE MOMENT NORWAY AND THE NORWEGIANS
PARTICULARLY THE DOUR DENIZENS OF THE SLEEPY GUDBRANDSDALEN VALLEY ARE
CHALLENGE ENOUGH

THE OLYMPICS ARE A CONTRADICTION FOR THIS REGION SAYS HANS HAGENE
OLYMPIC COORDINATOR FOR THE TOWN OF GJOVIK WHICH WILL HOST SOME OF THE
HOCKEY GAMES WE'RE NOT USED TO WELCOMING FOREIGNERS AND NOW THE WORLD IS
COMING

THE OLYMPICS ARE SUCH A JOLT EACH DAY MORE THAN 100000 TOURISTS FROM
AROUND THE WORLD WILL FLOCK TO A REGION WITH A TOTAL POPULATION OF 250000
 THAT THE EASTERN NORWAY RESEARCH INSTITUTE BASED HERE HAS ASSIGNED AN
ANTHROPOLOGIST TO STUDY THE REACTION OF THE LOCALS

NOTHING EVER HAPPENS HERE SAYS LOCAL POET OYVIND BERG HE RECALLS MOVING
TO LILLEHAMMER SEVERAL YEARS AGO FROM THE MORE COSMOPOLITAN TOWN OF BERGEN
AND HEADING OUT TO THE GREEN MARKET THE VENDORS HE SAYS TRIED TO TALK HIM
OUT OF BUYING THEIR FRUIT

THEY DIDN'T EVEN WANT TO SELL THE APPLES ARE YOU SURE' THEY WOULD ASK
THESE APPLES WELL OK' THE POET SAYS THE PEOPLE HERE ARE SAID TO BE
THE SLOWEST IN NORWAY THAT SAYS A LOT PRIZE MISFIT IT DOES THIS IS A
COUNTRY AFTER ALL THAT BESTOWS THE PEER GYNT PRIZE AS ONE OF ITS HIGHEST
NATIONAL ACCOLADES EVEN THOUGH PEER GYNT A CHARACTER CREATED BY NORWEGIAN
PLAYWRIGHT HENRIK IBSEN IS ONE OF THE GREAT MISFITS AND LIARS IN LITERARY
ANNALS NORWAY IS ALSO THE INSPIRATION FOR HUMORIST GARRISON KEILLOR'S LAKE
WOBEGON A DOZY SETTLEMENT WHERE PEOPLE PAY HOMAGE TO A STATUE OF THE
UNKNOWN NORWEGIAN

NORWAY NEEDS THE EXPOSURE LAMENTS LOOC CHAIRMAN GERHARD HEIBERG IN GRAND
NORDIC UNDERSTATEMENT

TO BE SURE NORWAY HAS BEEN ON A GEOPOLITICAL ROLL OF LATE SHAKING OFF THE
ANONYMITY THAT COMES FROM BEING A COUNTRY OF ONLY FOUR MILLION PEOPLE ON THE
NORTHERN RIM OF EUROPE WHERE THE WINTER SUN SETS ON THE CAPITAL CITY BY
MIDAFTERNOON NORWAY HAS HOSTED THE BREAKTHROUGH PEACE TALKS BETWEEN ISRAEL
AND THE PALESTINE LIBERATION ORGANIZATION IT IS CAMPAIGNING FOR MEMBERSHIP
IN THE EUROPEAN UNION FORMERLY KNOWN AS THE EUROPEAN COMMUNITY AND ITS
SOCCER TEAM HAS MADE THE FINALS OF THIS SUMMER'S WORLD CUP THE MOSTWATCHED
SPORTING EVENT IN THE WORLD

STILL SAYS EINI DUEDAHL HOLMEN OF LOOC PEOPLE OVERSEAS THINK OF NORWAY AS
A PLACE WHERE REINDEER RUN IN THE STREETS AND PEOPLE GO FISHING ALL THE
TIME WHICH IS WHERE THE OLYMPICS COME IN THE GAMES TO BE PLAYED OUT OVER
16 DAYS IN THE GUDBRANDSDALEN VALLEY 100 MILES NORTH OF OSLO ARE SHOVING
THE NORWEGIANS SQUARELY ONTO THE WORLD'S CENTER STAGE AND THERE THEY STAND
AWED AND SQUINTING INTO THE BRIGHT LIGHTS LIKE TROLLS EMERGING FROM THEIR
SUBTERRANEAN HIDEAWAYS BUT DETERMINED TO SQUEEZE THE GAMES FOR EVERYTHING
THEY ARE WORTH

THE NORWEGIANS WHO GAVE US THE WORDS SKI AND SLALOM HAVE ALWAYS USED THE
WINTER GAMES TO DISPLAY THEIR SPORTING SKILLS DESPITE ITS TINY POPULATION
NORWAY HAS WON MORE GOLD MEDALS THAN ANY OTHER NATION EXCEPT THE FORMER
SOVIET UNION BUT THE LILLEHAMMER OLYMPICS ARE DESIGNED TO SHOW OFF NORWAY'S
PROWESS IN OTHER DISCIPLINES PARTICULARLY MANUFACTURING TOURISM AND
TECHNOLOGY

THE ALPINE EVENTS WILL UNVEIL THE HAUNTINGLY BEAUTIFUL SCENERY ON THE RIM OF
THE ARCTIC CIRCLE THE HOCKEY GAMES WILL SHOWCASE A MINDBOGGLING ARENA
CARVED INTO A MOUNTAINSIDE WITH THE CUTTING EDGE OF CONSTRUCTION TECHNOLOGY
THE SPEED SKATING RACES WILL SPOTLIGHT A WOODDOMED STADIUM THAT PUSHES THE
ENVELOPE ON THE USE OF TIMBER IN TURN THE PARADE OF VISITORS FROM AROUND
THE WORLD WILL SHOW THE LOCALS THAT WITH A LITTLE INITIATIVE AND A
WELLTIMED SMILE THERE IS A HUGE MARKET RIPE FOR THE PICKING

MS HOLMEN BEGINS THE HARVEST BY CHEERILY LEADING A TOUR AROUND
LILLEHAMMER'S OLYMPIC BUSINESS CENTER WHERE FOR THE FIRST TIME EVER
COMPANIES FROM THE NEIGHBORING AND BICKERING COUNTIES OF OPPLAND AND HEDMARK
THE ONLY TWO NORWEGIAN COUNTIES WITHOUT A COASTLINE HAVE COME TOGETHER
UNDER ONE ROOF TO PROMOTE THEIR WELFARE THERE IS A COMPANY THAT MAKES
12000 DIFFERENT KINDS OF FISH HOOKS AND AN AMBITIOUS SNOWPLOW MAKER WHOSE
BLADES ARE WORKING AS FAR AWAY AS THE SOUTH POLE MS HOLMEN PAUSES IN FRONT
OF A MINIATURE REPLICA OF ONE OF THE COUNTRY'S ARCHITECTURAL WONDERS AN
OFFSHORE OIL PLATFORM WHICH TOWERS OVER SCALE REPLICAS OF THE EMPIRE STATE
BUILDING THE EIFFEL TOWER AND AN EGYPTIAN PYRAMID SHE FLASHES A TRULY
GENUINE SMILE

IT WAS BUILT BY STATOIL OUR NATIONAL OIL COMPANY SHE SAYS PROUDLY IN
LAKE WOBEGON STYLE THEY NAMED IT THE TROLL PLATFORM

NOT EVERYONE AS COULD BE EXPECTED HAS JUMPED ON THE PROMOTIONAL BANDWAGON
AS THE COSTS OF STAGING THE OLYMPICS SUPPORTED BY THE STATE TREASURY HAVE
RISEN FROM JUST UNDER 200 MILLION TO JUST OVER 1 BILLION SOME NORWEGIANS
HAVE WONDERED WHAT THEY HAVE GOTTEN THEMSELVES INTO I'M HAPPY LILLEHAMMER
DIDN'T KNOW ALL THE OLYMPICS INVOLVE OR THEY WOULD NEVER HAVE APPLIED SAYS
MR HEIBERG THE CHAIRMAN WHO COMES FROM OSLO

TO SPEND ALL THAT MONEY IN THIS LITTLE DISTRICT FOR THAT SHORT OF TIME IS A
WASTE OF MONEY SAYS MR BERG THE POET I'VE WRITTEN A POEM WHERE I'VE
CANCELED THE OLYMPICS JUST CALLED THE WHOLE THING OFF SOMEONE HAD TO DO
IT

BUT MOSTLY THERE IS GREAT EXPECTATION THAT ALL THIS WILL LEAD TO FUTURE
PROSPERITY FOR NORWAY IN GENERAL AND THE LILLEHAMMER REGION IN PARTICULAR
EVEN MR BERG IS GETTING HIS SHARE GAINING AN ASSIGNMENT TO COVER THE GAMES
FROM AN ODDBALL PERSPECTIVE FOR A NORWEGIAN PAPER

THE OLYMPICS WILL BEQUEATH A STATEOFTHEART TELEVISIONBROADCAST CENTER
THAT LILLEHAMMER WILL CONVERT INTO A DISTRICT COLLEGE WITH ROOM FOR 3000
STUDENTS SPECIALIZING IN FILM AND COMMUNICATIONS TECHNOLOGY THE ULTERIOR
MOTIVE IS TO GIVE THE YOUNG PEOPLE OF THE VALLEY INCENTIVE TO STAY AT HOME
TO STUDY AND WORK ESPECIALLY THE WOMEN IN ONE AREA OF OPPLAND COUNTY
WHICH HAS THE LOWEST BIRTHRATE IN NORWAY THERE ARE CURRENTLY ONLY 70 WOMEN
TO EVERY 100 MEN IN THE 20 TO 40 AGE RANGE

THE OLYMPICS AS A MARKETING TOOL CAN'T BE BEAT MOELVEN LIMTRE AS COULD HAVE
BUILT A CONVENTIONAL SPEEDSKATING ARENA IN THE TOWN OF HAMAR INSTEAD IT
ERECTED A 12000SEAT STRUCTURE THAT LOOKS LIKE THE UPTURNED HULL OF A
VIKING SHIP OR VIEWED WITH THE AID OF A SHOT OF AQUAVIT AN UPSIDE DOWN
TACO SHELL EITHER WAY THE WONDROUS ROOF IS SUPPORTED BY THE LONGEST WOOD
SPAN IN THE WORLD STRETCHING NEARLY 100 YARDS A TECHNOLOGICAL MILESTONE
MADE POSSIBLE BY MOELVEN'S LAMINATEDGLUE PROCESS THAT MAKES THE WOOD
STRONGER AND MORE FIRE RESISTANT THAN STEEL

MOELVEN IS READY TO GO AROUND THE WORLD SAYS ODD OLAV SOLBAKKEN THE
COMPANY'S EXPORT SALES DIRECTOR HE ENVISIONS CONSTRUCTING WOODEN
INDOORSOCCER STADIUMS ACROSS THE NORTHERN TUNDRA THROUGHOUT THE EQUATORIAL
RAIN FORESTS AND IN THE DESERTS OF THE MIDDLE EAST WHERE NORWAY ALREADY HAS
A FOOT IN THE DOOR WITH THE PEACE TALKS WITH THE OLYMPICS AND THE MIDDLE
EAST TALKS EYES ARE ON NORWAY WE'D BE VERY STUPID IF WE WOULDN'T
CAPITALIZE ON THIS

ON THE OTHER SIDE OF LAKE MJOSA THE TOWN OF GJOVIK IS ALREADY TAKING THE
NOTORIETY OF ITS CAVERN HALL HOCKEY ARENA TO THE BANK RATHER THAN BUILD A
NORMAL RINK THE TOWN DECIDED TO PUT ONE WITH SOME 6000 SEATS IN THE SIDE
OF A MOUNTAIN NOW IT HAS THE LARGEST UNDERGROUND SPACE FOR PUBLIC USE IN
THE WORLD SO FAR MORE THAN TWO DOZEN DELEGATIONS FROM JAPAN AND KOREA 
COUNTRIES RUNNING OUT OF FLAT LAND FOR HOUSING AND COMMERCIAL DEVELOPMENTS
 HAVE COME TO GJOVIK TO PORE OVER FOR A PRICE THE HIGHTECH RESEARCH
STUDIES

THESE TECHNOLOGICAL ACHIEVEMENTS HAVE GIVEN NORWEGIAN MANUFACTURING A
SELLING POINT ABROAD TRUMPETED BY EVERYONE FROM KING HARALD TO SNOWPLOW
KING OVERAASEN AS WE KNOW IT IS GETTING NORWAY A LOT OF ATTENTION SAYS
THOR OVERAASEN IN HIS CASE ALL THE WAY TO CHINA WHICH HAS JUST ORDERED A
BATCH OF PLOWS

THE OLYMPICS ARE ALSO THE WORLD'S BEST WEAPON FOR CONQUERING THE TOURISM
MARKET WHICH HAS GEORG KAMFORD DROOLING IN ANTICIPATION A VISITING
PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS WHEN LILLEHAMMER WAS AWARDED
THE OLYMPICS MR KAMFORD RETURNED HOME WITH DISNEYESQUE PLANS TO TURN THE
REGION INTO A TOURIST MECCA HE IS TALKING AMUSEMENT PARKS NATUREBASED
THEME PARKS ECOTOURISM AND THERE IS STILL THE BIG TROLL IN FACT THE
WHOLE OLYMPIC REGION IS BEING PACKAGED UNDER THE NAME TROLL PARK

THIS ATTITUDE IF IT STICKS MAY BE THE MOST VALUABLE LEGACY OF THE
OLYMPICS WE'RE VERY OLD FASHIONED WE'RE TAUGHT TO STAND BEHIND AND NOT
SAY THINGS OUT FRONT WE'RE LEARNING A NEW CULTURE SAYS ANNIKI EJINDAR A
TOUR GUIDE IN HAMAR'S VIKING SHIP HALL SHE IS CATCHING ON FAST WE'RE
PROUD OF OUR HALL IT HAS PLACED HAMAR ON THE MAP OF THE WHOLE WORLD

IN LILLEHAMMER WHERE THE BIGGEST RISK MOST PEOPLE TAKE IS STRAPPING ON
SKIS THE RESIDENTS ARE GETTING POSITIVELY ADVENTUROUS OWNERS OF FURNITURE
STORES AND JEANS SHOPS ARE CONVERTING THEIR ESTABLISHMENTS INTO BARS AND
RESTAURANTS TO CAPITALIZE ON THE WAVE OF FREESPENDING VISITORS

EVEN IF THEY FAIL THEY LEARN SOMETHING SAYS OLAV SPILLING RESEARCH
DIRECTOR AT THE EASTERN NORWAY RESEARCH INSTITUTE THE OLYMPICS IS A
PROCESS OF LEARNING COMPETENCE PEOPLE SEE NEW WAYS OF THINKING NEW ROLE
MODELS NEW OPPORTUNITIES THERE MUST BE SOMETHING LASTING FROM THIS

LIKE LILLEHAMMER'S PLACE IN THE 21ST CENTURY NORWAY ISN'T WHAT IT WAS 20
YEARS AGO WE CAN SIT UP IN THE MOUNTAINS AND WATCH CNN AND SEE WHAT HAPPENS
IN ROMANIA AS IT HAPPENS SAYS RANDI DEY OLYMPIC HOSPITALITY COORDINATOR
FOR OPPLAND COUNTY WE HAVE TO MAKE THE PEOPLE HERE AWARE THAT THEY ARE ALL
HOSTS

WHICH IS WHAT THE SMILESHAPING GIZMO WAS ALL ABOUT A LIGHTHEARTED
MOTIVATIONAL MESSAGE TO REMIND THE LOCALS TO BE FRIENDLY TO THE VISITORS SO
THAT ONE DAY THEY WILL COME BACK AND SPEND MORE MONEY

BUT THE OLYMPICS CAN'T CHANGE EVERYTHING OVERNIGHT WHEN WORD LEAKED THAT
LOOC PLANNED TO DISTRIBUTE 100000 OF THE GIZMOS THE GOOD BUT CONSERVATIVE
FOLKS OF THE VALLEY REACTED WITH A DECIDED FROWN THE PROJECT WAS PUT ON
ICE

PEOPLE HERE ACTUALLY THOUGHT THEY WOULD HAVE TO USE THEM MAYBE WEAR THEM
TO BED AT NIGHT AND THEY COMPLAINED THAT WE WERE SPENDING TAX MONEY FOR
SUCH THINGS SAYS MS DEY THEY DIDN'T GET THE JOKE 9401170118 940117
COSTEEL PLACES NOTES IN US

TORONTO COSTEEL INC SAID IT COMPLETED A US100 MILLION PRIVATE
PLACEMENT OF 10YEAR NOTES WITH A US FINANCIAL INSTITUTION PROCEEDS WILL
BE USED TO FUND A MINIMILL THAT COSTEEL IS BUILDING IN KENTUCKY UNDER A
JOINT VENTURE COSTEEL IS A TORONTO STEEL PRODUCER 9401170117 940117
TONEN CHIEF STEPS DOWN IN POSSIBLE CULTURE CLASH

TOKYO THE TOP EXECUTIVE OF A LEADING JAPANESE OIL REFINER WITH CLOSE TIES
TO TWO AMERICAN OIL GIANTS IS RESIGNING IN AN APPARENT CLASH BETWEEN THE
TWO NATIONS' CORPORATE CULTURES

TONEN CORP 50 OF WHICH IS OWNED BY EXXON CORP AND MOBIL CORP SAID
FRIDAY THAT COMPANY PRESIDENT NOBUYUKI NAKAHARA WOULD LEAVE OFFICE ON MARCH
30 TONEN OFFICIALS SAID MR NAKAHARA WHO OVERSAW TONEN'S GROWTH AS A
TECHNOLOGICALLY ADVANCED AND FINANCIALLY CONSERVATIVE REFINER WAS LEAVING
BECAUSE HE ALREADY HAD BEEN PRESIDENT FOR EIGHT YEARS ACCORDING TO JAPANESE
PRESS REPORTS

INDUSTRY OBSERVERS HOWEVER WIDELY BELIEVE MR NAKAHARA A 34YEAR COMPANY
VETERAN WHOSE FATHER WAS ONE OF TONEN'S ORIGINAL MANAGING DIRECTORS WAS
OUSTED AS PART OF A LONGSTANDING CAMPAIGN BY EXXON AND MOBIL FOR MORE SAY IN
THE MANAGEMENT OF TONEN

FOR YEARS THE TWO US COMPANIES HAVE PRESSED FOR A GREATER RETURN ON THEIR
INVESTMENT INCLUDING A HIGHER DIVIDEND PAY OUT ON THEIR SHARES

NEITHER MR NAKAHARA NOR EXECUTIVES OF THE US COMPANIES WERE AVAILABLE FOR
COMMENT 9401170116 940117 WHO'S NEWS DIGITAL EQUIPMENT'S SHIRE 
SHOWN IN FORTUNE TO QUIT

MAYNARD MASS WILLOW B SHIRE A CORPORATE VICE PRESIDENT AT DIGITAL
EQUIPMENT CORP WILL RESIGN AT THE END OF MONTH ACCORDING TO COMPANY
EXECUTIVES

THE COMPUTER MAKER DIDN'T ANNOUNCE MS SHIRE'S DECISION TO RESIGN WHICH
INSIDERS SAID CAME LAST MONTH FOLLOWING A REORGANIZATION THAT CHANGED HER
RESPONSIBILITIES SHE IS A 16YEAR VETERAN OF THE COMPANY AND HAD BEEN CHIEF
OF DIGITAL'S HEALTHCAREBUSINESS UNIT REPORTING TO DIGITAL'S CHIEF
EXECUTIVE OFFICER ROBERT PALMER

THE 45YEAROLD EXECUTIVE ONE OF DIGITAL'S TOPRANKING FEMALE OFFICIALS
WAS PICTURED ON THE COVER OF FORTUNE MAGAZINE LAST YEAR IN AN ARTICLE ABOUT
MANAGING AMID CHAOS SHE CANDIDLY DESCRIBED MORALE AS VERY LOW PEOPLE
ARE TIRED FRUSTRATED AND FRIGHTENED A DIGITAL SPOKESMAN SAID THAT HER
DEPARTURE HAD NOTHING TO DO WITH HER PUBLIC COMMENTS AND NOTED HER LONG
RECORD OF SERVICE TO THE COMPANY SHE'S RESIGNING TO PURSUE OTHER BUSINESS
INTERESTS THE SPOKESMAN SAID

MS SHIRE SAID FRIDAY THAT HER DEPARTURE WASN'T RELATED TO ORGANIZATIONAL
CHANGES AND THAT SHE EXPECTS TO TAKE A POSITION SOON WORKING ON HEALTHCARE
REFORM ISSUES 9401170115 940117 PRODUCERS OF STEEL PLATE INCREASE
PRICES 2 TO 4

PITTSBURGH STEEL PLATE PRODUCERS CITING RISING DEMAND LAST WEEK
ANNOUNCED PRICE INCREASES OF 2 TO 4 FOR SHIPMENTS BEGINNING IN EARLY
APRIL

THE INCREASES WERE LED BY USX CORP'S US STEEL UNIT BETHLEHEM STEEL CORP
AND LUKENS INC AMONG OTHER PRODUCERS FOLLOWED OREGON STEEL MILLS INC
SAID IT WOULD MATCH THE INCREASE IN MARKETS WHERE IT COMPETES WITH THOSE
PRODUCERS

WE THINK THERE IS SUFFICIENT STRENGTH IN THE MARKET FOR THIS ONE TO STICK
SAID A US STEEL SPOKESMAN BETHLEHEM STEEL SAID THE MOVE WAS TO PARTIALLY
RESTORE FAIR VALUE TO PLATE PRODUCTS

I'M SURPRISED THE PRICE INCREASE HASN'T HAPPENED BEFORE NOW SAID CHARLES
A BRADFORD AN ANALYST WITH UBS SECURITIES DEMAND IS CLIMBING AND US
MARKETS ARE TIGHTENING IN PART BECAUSE GENEVA STEEL CO IS REVAMPING ITS
OPERATIONS WHICH IS KEEPING IT OUT OF MANY SECTORS OF THE PLATE MARKET
GENEVA'S PROJECT IS SCHEDULED FOR COMPLETION IN MARCH

STEEL PLATE IS USED IN BRIDGES POLLUTIONCONTROL SYSTEMS PRESSURE VESSELS
SHIPS AND CONSTRUCTION EQUIPMENT 9401170114 940117 CREDIT MARKETS 
HEFTY RETURNS LURE JUNK FUNDS INTO DEVELOPINGNATION MINEFIELD  BY
THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL

MOM AND POP MAY NOT REALIZE THAT THEIR HIGHYIELD JUNKBOND MUTUAL FUND IS
INVESTING NOT ONLY IN DONALD TRUMP'S CASINOS BUT ALSO IN ARGENTINA

IT WAS A GRAND IDEA IN 1993 WHEN DEVELOPINGCOUNTRY DEBT HELPED TO
TURBOCHARGE SOME JUNK FUNDS' TOTAL RETURNS WHICH AVERAGED 20 OVERALL
THAT SUCCESS HAS ENTICED SEVERAL OTHER JUNK FUNDS TO STRAY BEYOND THE
FAMILIAR TURF OF US CORPORATE DEBT SOME HAVE PUT 10 TO 30 OF THEIR
MONEY IN THE NOTES AND BONDS OF DEVELOPINGCOUNTRY GOVERNMENTS AND
COMPANIES THE FOREIGNERS NATURALLY ARE HAPPY TO HAVE SUCH INVESTORS CHINA
ON FRIDAY ANNOUNCED PLANS FOR A 1 BILLION GLOBAL BOND OFFERING ITS FIRST
EVER

BUT THE FUTURE MAY BE LESS ROSY FOR INVESTORS

BUYERS OF DEVELOPINGCOUNTRY DEBT WHICH MAY INCLUDE SOME UNWITTING
JUNKFUND INVESTORS FACE A WHOLE NEW LIST OF WORRIES THIRD WORLD
POLITICAL UPHEAVAL HIGH INFLATION A LONG HISTORY OF DEFAULTS AND CURRENCY
ZIGZAGS SO THIS IS A GOOD TIME FOR INVESTORS TO CONSIDER WHETHER THE
HIGHYIELD FUNDS THEY OWN ARE TURNING INTO FREQUENT GLOBETROTTERS AND
WHETHER THEY WANT TO GO ALONG FOR THE RIDE

CURTISS BARROWS HAS A WARM SPOT IN HIS HEART FOR ARGENTINA INDONESIA
HUNGARY AND THE PHILIPPINES JUST A FEW OF THE COUNTRIES THAT HELPED STEER
HIS PHOENIX HIGH YIELD FUND TO A 2148 TOTAL RETURN PRICE CHANGE PLUS
INCOME FOR 1993 IF IT WEREN'T FOR THAT 25 OF MY PORTFOLIO INVESTED IN
DEVELOPINGNATION BONDS MY TOTAL RETURNS WOULD HAVE BEEN MEDIOCRE HE SAYS
WHEN I STARTED BUYING THIS STUFF THREE YEARS AGO MY BOSSES THOUGHT I WAS
NUTS NOW THEY LOVE ME

MR BARROWS ISN'T ALONE MANAGERS OF SEVERAL TOPPERFORMING JUNK FUNDS SAY
THEY HAVE INCREASED OR PLAN TO INCREASE HOLDINGS OF DEVELOPINGNATION NOTES
AND BONDS ESPECIALLY IN LATIN AMERICA ECONOMIC REFORMS AND NEW TRADE
AGREEMENTS HAVE SPARKED A REBIRTH OF INVESTING IN DEVELOPING NATIONS MANY
OF WHICH WERE IN DEFAULT JUST A FEW YEARS AGO US FUND MANAGERS ARE
WILLING TO TAKE ON THE OFTEN MURKY POLITICAL AND ECONOMIC RISKS IN EXCHANGE
FOR A SHOT AT HUGE RETURNS PRICES FOR SOME OF PERU'S DEFAULTED LOAN PAPER
FOR EXAMPLE HAVE JUMPED FROM LESS THAN A DIME ON THE DOLLAR TO ABOUT 70
CENTS IN THREE YEARS

AMONG THE MOST POPULAR NATIONS ARE MEXICO ARGENTINA AND VENEZUELA SOME
MANAGERS SUCH AS MR BARROWS ARE LOOKING AT EASTERN EUROPEAN AND ASIAN
NATIONS AS WELL

NOT EVERY MANAGER IS JUMPING ON THE BANDWAGON DAVID GLANCY MANAGES THE
FIDELITY SPARTAN HIGH INCOME FUND AT FIDELITY INVESTMENTS WHICH HAS AN ARMY
OF RESEARCHERS FOR DEVELOPINGNATION STOCKS AND BONDS YET MR GLANCY SAYS
HIS FUND WHICH HAD A 1993 RETURN OF 2104 IS PROBABLY ONE OF THE MOST
UNDERREPRESENTED IN EMERGING MARKETS AMONG JUNKBOND FUNDS IF PEOPLE WANT
TO OWN EMERGINGMARKETS FUNDS THEY CAN OWN THEM HE SAYS PEOPLE ARE
GOING TO BE REALLY TICKED OFF IF THEY LOSE MONEY IN A JUNKBOND FUND BECAUSE
THE MANAGER WAS PUTTING MONEY INTO THE DEBT OF SRI LANKA

BUT MANY MANAGERS ARE ENTHUSIASTIC KEYSTONE GROUP INC FOR EXAMPLE PLACED
TWO FUNDS AMONG THE TOP 10 JUNKBOND FUNDS LAST YEAR KEYSTONE AMERICA
STRATEGIC INCOME FUND UP 3169 AND KEYSTONE CUSTODIAN FUND SERIES B4 UP
2622 DONALD KELLER A SENIOR PORTFOLIO MANAGER SAYS STRATEGIC INCOME HAS
30 OF ITS ASSETS IN DEVELOPINGNATION BONDS AND THE FIGURE COULD GO AS
HIGH AS 50 THIS YEAR TWO YEARS AGO IT HAD NONE AND CUSTODIAN FUND HAS 25
IN DEVELOPING NATIONS

OPPENHEIMER HIGH YIELD FUND WHICH HAD A TOTAL RETURN OF 2137 IN 1993 HAS
ABOUT 11 OF ASSETS IN DEVELOPINGNATION BONDS SAYS PORTFOLIO MANAGER RALPH
STELLMACHER PAINEWEBBER HIGH INCOME FUND A WHICH RETURNED 2279 IN 1993
IS CONSIDERING BUYING DEVELOPINGCOUNTRY BONDS SAYS MANAGER EVAN STEEN BUT
IS UNLIKELY TO REACH THE HOLDING LEVELS OF KEYSTONE'S HIGHFLYING FUNDS AND
JIN HO MANAGER OF PUTNAM HIGH YIELD ADVANTAGE FUND WHICH HAD A 2104
RETURN IN 1993 AND ALREADY OWNS A FEW DEVELOPINGNATION BONDS IS
CONSIDERING EVEN GREATER COMMITMENTS TO THE SECTOR

THE LINE BETWEEN THE FOREIGNBOND MARKET AND US JUNK BONDS IS BLURRING
MR HO OF PUTNAM SAYS THE TREND YOU WILL BE SEEING GOING FORWARD IS THE
MERGING OF HIGHYIELD AND EMERGINGMARKET DEBT RESOURCES

SALOMON BROTHERS INC FOR EXAMPLE IS TRYING HARD TO PERSUADE JUNKBOND
MANAGERS THAT THE LEAP FROM US JUNK BONDS TO FOREIGN BONDS IS MORE LIKE A
BABY STEP LAST SPRING THE SECURITIES FIRM A UNIT OF SALOMON INC SENT A
MUCHTALKEDABOUT GUIDE TO ITS CLIENTS TITLED EVALUATING SOVEREIGN CREDIT
RISK A HIGHYIELD ANALYSTS' GUIDE THE GUIDE DISMISSES MANAGERS' FEARS
CALLING ATTENTION TO THE REVOLUTIONARY POLITICAL AND ECONOMIC CHANGES OF
THE 1980S WHICH PROVIDE AN OPPORTUNITY FOR THE HIGHYIELD INVESTOR IN THE
AREA OF SOVEREIGN BONDS THE GUIDE MAKES THE ARGUMENT THAT WITH SOME
TRAINING A JUNKFUND MANAGER CAN DO HIS OWN ANALYSIS OF FOREIGN GOVERNMENT
BONDS JUST AS HE WOULD WITH US CORPORATE JUNK BONDS

MR BARROWS HAS BEEN AMONG THE MOST RECEPTIVE SOME OF HIS COMPETITORS
WONDER HOW HE CAN DO ALL THE NECESSARY ANALYSIS WITHOUT A FULLY STAFFED
RESEARCH DEPARTMENT SPECIALIZING IN FOREIGN BONDS THEY WANT ME TO HAVE
PILES OF CHARTS AND STUFF FROM MY OWN RESEARCH DEPARTMENT AND I THINK
THAT'S A BUNCH OF BALONEY HE RETORTS I ALREADY HAVE PILES OF RESEARCH
FROM THE FIRMS THAT SELL THE BONDS SUCH AS JP MORGAN GOLDMAN SACHS &
CO AND SALOMON BROTHERS HE SAYS

UNTIL RECENTLY BOND MARKETS SUCH AS MEXICO'S WERE VERY ILLIQUID 
DIFFICULT TO BUY AND SELL IN EASILY BECAUSE THERE WERE FEW MARKET MAKERS AND
WILLING INVESTORS BUT THE SITUATION HAS CHANGED MANY MANAGERS NO LONGER
FEEL COMPELLED TO TREAT MANY DEVELOPINGNATIONS BONDS AS ILLIQUID CREDITS
MANY US FUNDS ARE LIMITED TO HOLDING JUST 15 OF THEIR ASSETS IN SUCH
CREDITS CERTAIN DEVELOPINGNATION BOND MARKETS OFFER AS MUCH AND PERHAPS
IN SOME INSTANCES MORE LIQUIDITY THAN YOU CAN FIND IN US JUNK BONDS SAYS
MR STELLMACHER OF OPPENHEIMER

THOMAS OLE DIAL A PORTFOLIO MANAGER AT THE RECENTLY LAUNCHED NORTHSTAR HIGH
YIELD FUND SAYS THAT IF A SECURITY IS TRADED BY THREE OR MORE MARKET
MAKERS HE MIGHT COUNT IT AS LIQUID BUT TRUE LIQUIDITY MEANS YOU CAN EASILY
SELL A BOND INTO A BEAR MARKET MOST DEVELOPINGNATION BONDS HAVE YET TO
EXPERIENCE THAT

STRATOSPHERIC RETURNS AREN'T NECESSARILY PROOF THAT A FUND IS BINGING ON
DEVELOPINGNATION DEBT DEAN WITTER'S HIGH YIELD FUND WAS WITHIN SPITTING
DISTANCE OF BEING LAST YEAR'S TOPPERFORMING JUNKBOND FUND WITH A TOTAL
RETURN OF 3159 THE DEAN WITTER FUND DOESN'T OWN ANY DEVELOPINGNATION
BONDS NOR DOES IT PLAN TO BUY ANY THE FIRM SAYS

CHINA AND MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR SNC EACH ARE
SCHEDULED TO SELL 1 BILLION OF GLOBAL BONDS BY THE END OF THIS MONTH

CHINA ANNOUNCED ON FRIDAY THAT IT FILED A REGISTRATION STATEMENT WITH THE
SECURITIES AND EXCHANGE COMMISSION TO SELL 1 BILLION OF NONCALLABLE 10YEAR
NOTES THROUGH A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH & CO THE
OFFERING WILL BE CHINA'S FIRST DOLLARDENOMINATED GLOBAL OFFERING

BANCOMEXT ALSO PLANS TO SELL 1 BILLION OF NONCALLABLE 10YEAR NOTES THROUGH
LEAD MANAGERS GOLDMAN SACHS & CO AND MERRILL LYNCH

MEANWHILE US TREASURY SECURITIES TOOK ANOTHER BEATING FRIDAY AND ENDED A
ROLLERCOASTER WEEK LOWER

BEHIND FRIDAY'S DECLINE WAS MORE ECONOMIC NEWS CASTING DOUBT ON THE BELIEF
THAT THE ECONOMIC RECOVERY MIGHT HAVE BEEN LOSING STRENGTH AT THE END OF
1993 IN FACT TRADERS SAID THERE ARE SIGNS THAT SOME OF THE ECONOMIC VIGOR
HAS BEEN SPILLING OVER INTO 1994 STRONG ECONOMIC INDICATORS ARE GENERALLY
BEARISH FOR THE BOND MARKET BECAUSE THEY POSE THE THREAT OF HIGHER
INFLATION WHICH ERODES THE VALUE OF FIXEDINCOME INVESTMENTS

THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/2 POINT OR 5
FOR A BOND WITH A FACE VALUE OF 1000 TO 99 13/32 THE YIELD CLIMBED TO
629 FROM 625 ON THURSDAY

THE BOND MARKET'S TROUBLES BEGAN IN EARLY TRADING AFTER THE FEDERAL RESERVE
BOARD REPORTED THAT INDUSTRIAL PRODUCTION JUMPED 07 IN DECEMBER TRADERS
HAD ANTICIPATED A SMALLER RISE OF ABOUT 04 AND THE NEWS IMMEDIATELY SENT
PRICES LOWER

THEN AT MIDMORNING THE MARKET TOOK ANOTHER HIT FROM NEWS OF A
GREATERTHANEXPECTED INCREASE IN CONSUMER CONFIDENCE THE UNIVERSITY OF
MICHIGAN'S CONFIDENCE INDEX WAS SAID TO HAVE RISEN TO 958 FOR THE FIRST
HALF OF JANUARY FROM 882 IN DECEMBER THE REPORT IS MADE AVAILABLE ONLY TO
SUBSCRIBERS AT THE SAME TIME BUSINESS INVENTORIES WERE REPORTED UP 06 IN
NOVEMBER

THE DATA ONLY SERVED TO DEEPEN THE BEARISH SENTIMENT THAT WAS SPARKED
THURSDAY BY A LARGERTHANEXPECTED RISE IN RETAIL SALES AND ALL THE DATA
TAKEN TOGETHER HAVE PROMPTED ENOUGH INVESTOR SELLING TO ERODE MUCH OF THE
IMPROVEMENT IN BOND PRICES FOLLOWING WEEK'S EMPLOYMENT REPORT

IT LOOKS LIKE WE CAME OUT OF THE FOURTH QUARTER STRONGER THAN THE MARKET
HAD THOUGHT SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK
GOVERNMENT SECURITIES IN RESPONSE TO THAT SHIFT IN SENTIMENT THERE HAS
BEEN RETAIL SELLING MR BRIGGS SAID

THIS WEEK WILL BE A SHORTENED WEEK FOR CASH BOND TRADING THE MARKET IS
CLOSED TODAY IN OBSERVANCE OF MARTIN LUTHER KING DAY 9401170113 940117
WORLD MARKETS ASIAN STOCKS CAN ANTICIPATE SUSTAINED REBOUND BECAUSE OF
REGION'S HOT ECONOMY SAY ANALYSTS  BY ROBERT STEINER STAFF
REPORTER OF THE WALL STREET JOURNAL

HONG KONG SINCE ASIAN SHARE PRICES TUMBLED ALMOST TWO WEEKS AGO THE
INVESTOR HOTLINE AT FIDELITY INVESTMENTS MANAGEMENT LTD'S OFFICE HERE HAS
BEEN GETTING FAR MORE CALLS THAN USUAL FEW CUSTOMERS WANT TO SELL MUTUAL
FUND SHARES SAYS RICHARD WASTCOAT REGIONAL MARKETING DIRECTOR FOR THE FUND
MANAGEMENT FIRM RATHER HE SAYS MOST ARE CALLING TO ASK WHAT EVERYONE
ELSE IS DOING

FIDELITY'S ANSWER ON THE PHONE AND IN A NEWSPAPER ADVERTISEMENT HONG
KONG'S WEAKNESS MAY PRESENT A BUYING OPPORTUNITY AS IF TO PROVE THE
POINT STOCKS REBOUNDED 59 FRIDAY

SIMILAR BOUNCES BROUGHT THE MAIN INDEXES BACK UP AT THE END OF A LOSING
WEEK STOCKS CLIMBED 81 IN MALAYSIA 52 IN THAILAND AND 49 IN
SINGAPORE

MOST ANALYSTS AGREED WITH FIDELITY THAT ASIA'S CONTINUED ECONOMIC STRENGTH
WOULD FOSTER A SUSTAINED REBOUND SOMETIME BUT IT IS TOUGHER TO KNOW IF THAT
BOUNCE HAS ALREADY BEGUN AND HOW TO RIDE THE RECOVERY WHEN IT DOES COME
SOUTHEAST ASIA'S MARKETS HAVE CORRECTED THEIR SIMILAR RALLIES IN SUBTLY
DIFFERENT WAYS

TARGETING REBOUND PLAYS BY DISSECTING EACH MARKET'S OWN CORRECTION MEANS
IGNORING MANY ANALYSTS' ATTEMPTS TO EXPLAIN ALL THE CORRECTIONS IN ONE BLOW
BY SIMPLY REVERSING 1993'S LOGIC CONVENTIONAL WISDOM ARGUES THAT STOCKS
FELL ACROSS THE REGION BECAUSE A TIDE OF US MONEY WHICH HAD LIFTED THEM
IN LATE 1993 IS BEING SUCKED BACK INTO THE DEVELOPED WORLD BUT SOME HONG
KONGBASED ANALYSTS ADMIT US CLIENTS AREN'T SELLING HEAVILY THESE DAYS

OTHER ANALYSTS SAID THE REGION'S MASS CORRECTION HAS BEEN TECHNICAL
IMPLYING THAT THE MARKETS ARE RETURNING TO HISTORICAL BEHAVIOR PATTERNS
AFTER SOARING ABOVE NORMAL LEVELS IN RECENT MONTHS BUT ONE FUND MANAGER
SAID US AND JAPANESE INVESTORS' SUDDEN POWER IN ASIAN MARKETS MAKES
TRADITIONAL BEHAVIOR IRRELEVANT

IN CONSIDERING REASONS FOR EACH MARKET'S DROP THOUGH THE SEEDS OF ASIA'S
IMPENDING REBOUNDS BECOME CLEARER KUALA LUMPUR'S DECLINE FOR EXAMPLE HAD
LITTLE TO DO WITH FOREIGN INVESTORS RATHER IT WAS TRIGGERED LARGELY BY A
MESSAGE THE MALAYSIAN GOVERNMENT WAS SAID TO BE SENDING SPECULATORS EARLY
THIS MONTH AS AN ELECTION IS EXPECTED THIS YEAR SOME ANALYSTS SUGGESTED
THE RULING PARTY WANTS AN INEVITABLE STOCKMARKET CORRECTION OUT OF THE WAY
FIRST SO MALAYSIA'S TOP OFFICIALS WARNED THAT STOCKS HAD REACHED
UNREASONABLY HIGH LEVELS AN INFLUENTIAL FORMER FINANCE MINISTER SAID HE HAD
MOSTLY BAILED OUT OF STOCKS AND THE CENTRAL BANK ACTED TO SOP UP CASH FROM
THE FINANCIAL SYSTEM SURE ENOUGH THE KUALA LUMPUR INDEX TUMBLED 21
BETWEEN JAN 5 AND LAST THURSDAY AND MANY SPECULATORS SOLD LOSERS TO REPAY
MARGIN LOANS

IN THE THAI MARKET THE RECENT ROUT ALSO HAD MORE TO DO WITH LOCAL
SPECULATORS THAN FOREIGN INVESTORS AFTER BANGKOK'S INDEX STARTED SLIDING ON
FEARS THAT FOREIGN INVESTORS WERE CASHING OUT OF ASIA BROKERS SAID CLIENTS
FELT FORCED TO REPAY MARGIN LOANS WHILE THEY COULD SELL STOCKS AT A PROFIT
GROWING FEARS THAT SPECULATORS MIGHT DEFAULT ON MARGIN LOANS IN TURN
WEAKENED FINANCIAL SHARES THAT HAD LED THE MARKET IN LATE 1993 NOW
BANGKOK'S STRONGEST SIGNS OF A REBOUND COME FROM RESILIENT DEMAND FOR MUTUAL
FUND SHARES

THE CONVENTIONAL WISDOM ABOUT ASIA THAT FOREIGN INVESTORS SPARKED TUMBLES
AND WILL UNLEASH REBOUNDS APPLIES MOST READILY IN HONG KONG CONSIDERED THE
EASIEST MARKET OUTSIDE JAPAN FOR FOREIGN PARTICIPATION ESPECIALLY BY
INSTITUTIONS THAT CAN JUMP IN AND OUT OF STOCKS QUICKLY WHEN OPPORTUNITIES
POP UP ELSEWHERE HONG KONG OFTEN GETS HIT HARD

TOKYO STOCKS RALLIED 21 FRIDAY ON EXPECTATIONS OF JAPANESE POLITICAL
STABILITY AND A NEW ECONOMIC STIMULUS LONDON SHARES ALSO SURGED 12 IN A
SHORTCOVERING SCRAMBLE ON THE FINAL DAY OF A TRADING ACCOUNT BUT FRANKFURT
PRICES TUMBLED 11 IN A CONTINUING CORRECTION

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11324 UP 142 OR 127 REFLECTING INCREASES IN MARKETS IN
ALL REGIONS

PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 24893 UP 3842 OR 1825 WITH UNITED PLANTATIONS OF
MALAYSIA POSTING A 3061 GAIN IN ITS LOCAL CURRENCY ADVERTISING STOCKS
TRAILED AT 13225 DOWN 048 OR 036 WITH INTERPUBLIC GROUP OF THE US
SLIDING 192 IN LOCAL CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX JUMPED 39644 TO 1897370 AFTER EDGING
ABOVE 19000 IN INTRADAY TRADING FOR THE FIRST TIME SINCE EARLY NOVEMBER IN
TRADING MONDAY THE NIKKEI INDEX FELL 21762 POINTS TO CLOSE THE MORNING
SESSION AT 1875608

FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 450 MILLION SHARES UP FROM
4224 MILLION SHARES A DAY EARLIER BUT 36 OF THE TURNOVER CAME IN THE
FIRST HOUR MUCH OF IT TIED TO SETTLEMENT OF NIKKEI OPTIONS FOR JANUARY
GAINERS SWAMPED LOSERS 828219 THE TOKYO STOCK PRICE INDEX OR TOPIX OF
ALL FIRSTSECTION ISSUES SURGED 2215 OR 15 TO 152562 FOREIGN
INVESTORS REMAINED STRONG BUYERS AND INDIVIDUALS MADE A RETURN APPEARANCE
ON INCREASING CERTAINTY THAT POLITICAL REFORM LEGISLATION WOULD BE PASSED BY
JAPAN'S DIET OR PARLIAMENT SMOOTHING ECONOMICSTIMULUS MEASURES

IN LONDON THE FINANCIAL TIMESSTOCK INDEX 100SHARE INDEX SURGED 406
POINTS TO 34006 THE FT 30STOCK INDEX RALLIED 347 POINTS OR 13 TO
26121 VOLUME WAS 102 BILLION SHARES UP FROM 8962 MILLION SHARES A DAY
EARLIER MANY INVESTORS SCRAMBLED TO BUY STOCKS SOLD SHORT BORROWED STOCK
SOLD IN HOPES OF PROFITING BY REPLACING THE POSITIONS AT A LOWER PRICE 
AND DUE FOR DELIVERY ON THE TRADING ACCOUNT'S FINAL DAY LATER THE GERMAN
CENTRAL BANK CHIEF SAID INTEREST RATES SHOULDN'T STAY AT CURRENT LEVELS ANY
LONGER THAN NECESSARY HELPING TO SPUR LONDON STOCKS BROADLY

IN FRANKFURT THE DAX 30STOCK INDEX SANK 2284 POINTS TO 214182 BRINGING
LAST WEEK'S LOSS TO 32 THE GAUGE HAS LOST 12616 POINTS OR 56 FROM A
RECORD HIGH SET JAN 3 INVESTORS WERE DISAPPOINTED ABOUT EARNINGS PROSPECTS
AND OTHER CORPORATE DEVELOPMENTS SWISS AND US INVESTORS HAVE BEEN NET
SELLERS THIS YEAR

IN PARIS AFTER A TWODAY PROFITTAKING LOSS OF 35 STOCKS ROSE IN
AMSTERDAM PRICES RECOVERED SMARTLY AFTER LAST WEEK'S DECLINES AROUSED
BARGAIN HUNTING AND SHORTCOVERING IN MADRID STOCKS CLIMBED TO A RECORD
BOOSTED BY RECOVERIES IN OTHER EUROPEAN MARKETS EARLY STRENGTH ON WALL
STREET AND BUYING BY SPANISH AND US INSTITUTIONAL INVESTORS IN
STOCKHOLM PRICES ALSO ADVANCED TO A RECORD LIFTED BY RALLIES IN THE AUTO
AND FORESTRY SECTORS INSTITUTIONAL DEMAND WAS HEAVY AMID SPECULATION ABOUT
SWEDISH INTERESTRATE CUTS

IN SYDNEY SHARES SURGED 14 AS INVESTORS RETURNED TO THE MARKET IN FORCE
AFTER SEVERAL DAYS OF PROFITTAKING BUT IN SEOUL STOCKS LOST 22 AFTER
THE GOVERNMENT UNVEILED STEPS TO COOL WHAT IT TERMED AN OVERHEATED MARKET
URGING INSTITUTIONS TO REFRAIN FROM BUYING AND REQUIRING THEM TO PAY CASH
DEPOSITS AND ALLOWING SHORT SALES IN MEXICO CITY EQUITIES TUMBLED 19 ON
PROFITTAKING AS REBEL PEASANTS' CHALLENGE TO THE GOVERNMENT REMAINED
UNSETTLED

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
9401170112 940117 SOUTHMOUNTAIN 2 OFFICIALS INDICTED IN '92 MINE BLAST

WASHINGTON A FEDERAL GRAND JURY INDICTED SOUTHMOUNTAIN COAL CO AND TWO
COMPANY OFFICIALS IN CONNECTION WITH AN ACCIDENT THAT KILLED EIGHT MINERS IN
LATE 1992

THE COMPANY BASED IN NORTON VA WAS CHARGED WITH SIX FELONY COUNTS AND 11
MISDEMEANORS INCLUDING VIOLATIONS OF VENTILATION STANDARDS AND FAILURE TO
CONDUCT SAFETY CHECKS IN ADDITION THE COMPANY IS ACCUSED OF FALSIFYING
RECORDS

IF CONVICTED ON ALL COUNTS THE COMPANY COULD FACE AS MUCH AS 85 MILLION
IN CRIMINAL PENALTIES

LAST YEAR THE FEDERAL MINE SAFETY AND HEALTH ADMINISTRATION FINED THE
COMPANY 439172 THE MAXIMUM POSSIBLE FOR THE EIGHT VIOLATIONS UNCOVERED
AFTER THE EXPLOSION

IN ITS REPORT IN MAY ON THE ACCIDENT THE AGENCY'S INVESTIGATORS FOUND THAT
INSUFFICIENT VENTILATION IN THE MINE LED TO A BUILDUP OF METHANE GAS
COMPANY OFFICIALS FAILED TO DETECT THE BUILDUP BECAUSE OF INADEQUATE
EXAMINATIONS THE REPORT SAID AND A CIGARETTE LIGHTER SET OFF THE
EXPLOSION

SOUTHMOUNTAIN'S LAWYERS COULDN'T BE REACHED TO COMMENT 9401170111 940117
EXWESTERN S&L PRESIDENT DRIGGS INDICTED FOR FRAUD

PHOENIX THE FORMER PRESIDENT OF WESTERN SAVINGS & LOAN ASSOCIATION A
DEFUNCT ARIZONA THRIFT ASSOCIATED WITH CONVICTED FINANCIER CHARLES W KNAPP
WAS INDICTED ON CHARGES OF FRAUD CONSPIRACY MISAPPLICATION OF FUNDS AND
MAKING FALSE STATEMENTS TO REGULATORS

THE 25COUNT INDICTMENT OF GARY DRIGGS BY A FEDERAL GRAND JURY HERE LAST
WEEK CAME MORE THAN TWO YEARS AFTER HE AND ABOUT 50 OTHER OFFICERS AND
ASSOCIATES OF THE THRIFT WERE NAMED IN A CIVIL LAWSUIT FILED BY THE
GOVERNMENT SEEKING MORE THAN 1 BILLION IN DAMAGES ONCE ARIZONA'S
SECONDLARGEST THRIFT WESTERN SAVINGS WAS SEIZED BY REGULATORS IN JUNE 1989
AT AN ESTIMATED 17 BILLION LOSS TO TAXPAYERS

MICHAEL HAWKINS AN ATTORNEY FOR MR DRIGGS SAID THE CRIMINAL CHARGES ARE
A REHASH OF THE CIVIL SUIT THAT'S STILL PENDING ADDING THAT HIS CLIENT
INTENDS TO FIGHT THE INDICTMENT 9401170110 940117 MISSED SIGNAL 
PITTSBURGH'S WQED FAILED TO SEE CHANGE IN PUBLICTV INDUSTRY  
LAVISH SPENDING CONTINUED AS SPONSORSHIP FADED LEFT STATION WITH
DEFICIT  BOARD FACES ANGRY VIEWERS  BY VALERIE REITMAN 
STAFF REPORTER OF THE WALL STREET JOURNAL

PITTSBURGH ITS FINANCES ARE IN SHAMBLES LOCAL SUBSCRIBERS ARE FURIOUS
BOARD MEMBERS ARE EMBARRASSED AND THE STATION MANAGEMENT IS ON THE
DEFENSIVE WQED THE FIRST COMMUNITYSPONSORED EDUCATIONALTELEVISION
STATION IN AMERICA HAS SUFFERED FROM PUBLIC TV'S MODERN AILMENTS DWINDLING
CORPORATE AND GOVERNMENT FUNDING AMID GROWING COMPETITION FOR VIEWERS AND
SPONSORS FROM THE CABLE NETWORKS

BUT WQED'S GREATEST PROBLEM HAS BEEN INSOUCIANCE FOR ITS STATION EXECUTIVES
 ACCUSTOMED TO FLUSH TIMES MISSED THE INDUSTRY DANGER SIGNS IN SOME
CASES AND IGNORED THEM IN OTHERS THEY SPENT LAVISHLY AND WHEN THEIR STRONG
CORPORATE FUNDING DRIED UP THEY FAILED TO SCALE BACK AND LIVE WITHIN THEIR
MEANS

AS RECENTLY AS LAST YEAR THE STATION RAN MYRIAD TELETHONS EXHORTING VIEWERS
TO SEND IN MONEY WHILE ITS CHIEF EXECUTIVES COLLECTED HANDSOME SALARY AND
BENEFIT PACKAGES MEANWHILE WQED HAD RACKED UP A 48 MILLION DEFICIT AND
HAD NO PROSPECTS OF SIGNIFICANT NEW SPONSORSHIP

LLOYD KAISER THE STATION'S CHIEF EXECUTIVE WHO RETIRED IN JUNE SAYS HIS
23YEAR REGIME AT WQED ISN'T AT FAULT THE PRECARIOUS POSITION OF PUBLIC TV
NATIONALLY SPEAKS FOR ITSELF

THESE DAYS MANY VIEWERS CAN TUNE IN TO CABLE NETWORKS LIKE THE DISCOVERY
CHANNEL TO SEE THE KIND OF PROGRAMMING ONCE EXCLUSIVE TO PUBLIC TELEVISION
IN ADDITION LOCAL COMPANIES THAT PUT UP MONEY TO SPONSOR NATIONALLY
PRODUCED PUBLIC TV SHOWS SUCH AS MACNEIL/LEHRER NEWSHOUR ON LOCAL PBS
STATIONS HAVE FOUND SUCH PLUGS TO BE COSTLY IT'S A VERY EXPENSIVE FORM
OF ADVERTISING SAYS KARL SMREKAR FINANCIAL ADVISER FOR ALLEGHENY
FINANCIAL GROUP WHICH NO LONGER SPONSORS THE SHOWING OF WALL STREET WEEK
ON WQED IT COST ABOUT 13000 A YEAR TO SPONSOR THE FRIDAY NIGHT SHOW AND
THE FIRM NOW ADVERTISES ON RADIO FOR ABOUT HALF THAT AMOUNT MR SMREKAR
SAYS

INDEED PUBLIC STATIONS ACROSS THE COUNTRY ARE FINDING BUSINESS AND VIEWER
SUPPORT ISN'T TAKING UP THE SLACK AS BIG CORPORATE UNDERWRITERS AND STATE
AND LOCAL GOVERNMENTS REALLOCATE MONEY THEY USED TO GIVE TO PUBLIC TV AS A
RESULT THEY ALL TAKE TURNS RUNNING DEFICITS SAYS STEVE BEHRENS EDITOR
OF CURRENT THE PUBLICBROADCASTING NEWS JOURNAL

STATIONS NATIONWIDE HAVE BEEN CUTTING BACK THEIR STAFFS AND THEIR EXECUTIVE
SALARIES AS THEY GRAPPLE WITH THE HARSH NEW REALITY FOR EXAMPLE KCET IN
LOS ANGELES HAD ROUNDS OF LAYOFFS IN 1991 AND 1993 AS DID KQED IN SAN
FRANCISCO AND WNET IN NEW YORK WNET REDUCED ITS CHIEF EXECUTIVE'S SALARY
FROM 290000 TO ABOUT 246000 IN SALARY AND ALLOWANCES

BUT IN WQED'S CASE THOMAS ALLEN A FORMER BOARD MEMBER WHO RETIRED ABOUT
THREE YEARS AGO SAYS I'M NOT SURE HOW MUCH ANY BOARD MEMBER EVEN THE
OFFICERS WAS AWARE OF THE NUTS AND BOLTS OF WHAT WAS GOING ON OVER THERE
IT WAS A BIG OPERATION WITH A BIG BOARD AND AUTHORITY GETS A LITTLE BIT
FRAGMENTED

WHAT WAS GOING ON WAS THIS WQED LOST GULF OIL ITS PRINCIPAL CORPORATE
SPONSOR AND NATIONAL GEOGRAPHIC ITS MAIN COPRODUCER AND HAD NO PROSPECTS
TO REPLACE THEM NEVERTHELESS THE STATION CONTINUED TO GIVE ITS TOP FOUR
EXECUTIVES HANDSOME SALARIES AND BENEFIT PACKAGES WHICH IN THE FISCAL YEAR
ENDED JUNE 30 1992 RANGED FROM 205000 TO 325995 THE LATEST NUMBERS
AVAILABLE THE PACKAGES INCLUDED ANNUAL CAR ALLOWANCES RANGING FROM 15000
TO 22000 AND THE EXECUTIVES WERE ABLE TO CASH IN INSURANCE POLICIES FOR
AMOUNTS RANGING FROM 34000 TO 68191 THE POLICIES WERE BOUGHT SOME YEARS
BEFORE WITHOUT BOARD KNOWLEDGE SAYS ELSIE HILLMAN WQED BOARD CHAIRWOMAN
WHO IS A PITTSBURGH CIVIC LEADER

NEWS OF THESE PAY AND ACCOUNTING ANOMALIES BEGAN TO SURFACE IN PITTSBURGH
CREATING A PUBLICRELATIONS STORM IN A COMMUNITY GROWN ACCUSTOMED TO STEADY
TELEVISED APPEALS FOR DONATIONS TO THE HOME OF MISTER ROGERS'
NEIGHBORHOOD THE BOARD WAS EMBARRASSED IT WASN'T THAT THE WOOL WAS
PULLED OVER OUR EYES BUT THAT I WASN'T LOOKING AT THE RIGHT THINGS SAYS
MRS HILLMAN

ONCELOYAL WQED VIEWERS FELT BETRAYED AND SOME HAVE CUT DONATIONS I PUT
IT IN THE CONTEXT OF PEOPLE AT THE UNITED WAY AND THE BLOOD BANK USING THEIR
POSITION FOR PERSONAL GAIN WHEN THEY'RE SUPPOSED TO BE DOING GOD'S WORK
LAMENTS HARRY M CORBETT A LONGTIME WQED SUBSCRIBER WHO NO LONGER PLEDGES
150 A YEAR

PLEDGES AND DONATIONS GAVE WQED ITS START 40 YEARS AGO WHEN 60000
PITTSBURGHERS CONTRIBUTED 2 EACH FOR COMMUNITY TELEVISION WQED IS AMONG
THE HANDFUL OF PUBLICTV STATIONS THAT PRODUCE PROGRAMS SHOWN NATIONWIDE FOR
THE PUBLIC BROADCASTING SERVICE THE CORPORATION FOR PUBLIC BROADCASTING'S
PROGRAMMING ARM THE STATION NOT ONLY LAUNCHED LEGENDARY BROADCASTER FRED
ROGERS AND HIS ACCLAIMED CHILDREN'S SERIES BUT TEAMED UP WITH NATIONAL
GEOGRAPHIC FOR 15 YEARS OF SPECTACULAR DOCUMENTARIES TWELVE OF WQED'S
NATIONAL GEOGRAPHIC SPECIALS ARE IN THE TOP 25 MOSTWATCHED INDIVIDUAL SHOWS
EVER BROADCAST ON PBS AND THE STATION'S 28 EMMY AWARDS LIFTED IT TO THE
SAME CONSTELLATION AS BETTERKNOWN BIGGER PBS STATIONS IN BOSTON AND NEW
YORK

CURRENT AND FORMER STAFFERS CREDIT THE FORMER TOP EXECUTIVES MR KAISER AND
THOMAS SKINNER WITH BOTH WQED'S RISE AND FALL THE PAIR ARRIVED IN 1970
FROM PUBLICTV STATION WITF IN HERSHEY PA AND BUILT WQED FROM A SMALL
STATION WITH 2 MILLION IN ANNUAL REVENUE TO A 36 MILLION OPERATION WITH TV
CHANNELS WQED AND WQEX A CLASSICALMUSIC RADIO STATION AND A MONTHLY CITY
MAGAZINE

FOR 15 YEARS WQED RODE HIGH ON SPONSORSHIP FROM GULF OIL WHICH PROVIDED AS
MUCH AS 3 MILLION ANNUALLY FOR NATIONAL GEOGRAPHIC DOCUMENTARIES ON
SUBJECTS RANGING FROM SHARKS AND GRIZZLY BEARS TO THE LIVES OF BAKA PYGMIES
IN THE RAIN FOREST OF SOUTHEASTERN CAMEROON

NATIONAL GEOGRAPHIC'S EXECUTIVE PRODUCER DENNIS B KANE FORGED A FAST BOND
WITH WQED'S EXECUTIVE PRODUCER MR SKINNER TOGETHER THEY TRAVELED FROM
JERUSALEM TO THE SERENGETI IN AFRICA SCOPING OUT POTENTIAL SITES AND DINING
AT FINE RESTAURANTS ACCORDING TO MR KANE

BECAUSE GULF BANKROLLED THE DOCUMENTARIES WITH MONEY UPFRONT CASH FLOW
WASN'T A PROBLEM BACK IN PITTSBURGH EACH CHRISTMAS THERE WERE POINSETTIAS
ON ALL THE SECRETARIES' DESKS AND FANCY PARTIES MANAGERS GATHERED EACH YEAR
FOR A FEW DAYS' WORKING RETREAT AT A NEARBY SKI LODGE ACCORDING TO SOME OF
THOSE WHO PARTICIPATED

THINGS BEGAN TO UNRAVEL IN 1989 WHEN NATIONAL GEOGRAPHIC'S MR KANE DECIDED
TO STRIKE OUT ON HIS OWN TO FORM ABCKANE A SMALL DIVISION OF CAPITAL
CITIES AND NATIONAL GEOGRAPHIC DECIDED TO PRODUCE ITS SHOWS INHOUSE
THOUGH WQED HAD TWO YEARS' NOTICE BEFORE ITS FINAL PRODUCTION OF THE
NATIONAL GEOGRAPHIC SPECIALS IT SEEMED OBLIVIOUS TO WHAT OTHERS IN PUBLIC
TELEVISION SAW BIG CORPORATE OUTLAYS FOR NATIONAL PUBLICTELEVISION
PRODUCTIONS WERE DRYING UP ACROSS THE COUNTRY

WE ALL HAD ROSYCOLORED GLASSES ON THINKING THINGS WOULD COME ALONG TO
REPLACE NATIONAL GEOGRAPHIC ACKNOWLEDGES MRS HILLMAN THE WQED BOARD
CHAIRWOMAN BUT NOTHING DID

PEOPLE WHO WORKED AT THE STATION AT THAT TIME SAY MR SKINNER WENT INTO
MOURNING AFTER LOSING NATIONAL GEOGRAPHIC AND HIS DEPUTIES SAY HE HAD
DIFFICULTY ADJUSTING TO MORE MUNDANE PROGRAMMING PROSPECTS MR SKINNER
DENIES THIS SAYING HE PLUNGED INTO WORKING ON INFINITE VOYAGE A SCIENCE
PROGRAM FUNDED WITH ABOUT 3 MILLION A YEAR FROM DIGITAL EQUIPMENT CO BUT
IN 1991 AFTER FOUR SEASONS DEC ANNOUNCED IT WAS GIVING THE PROGRAM A FINAL
YEAR BEFORE PULLING THE PLUG

WQED BEGAN EXPERIENCING DIFFICULTY RAISING MONEY FOR NEW PRODUCTIONS AND
WENT AHEAD WITH PRODUCTIONS THAT WEREN'T FULLY FUNDED IT WAS LIKE WRITING
A BOOK NOT KNOWING THE NUMBER OF CHAPTERS OR WHETHER THERE WOULD BE CERTAIN
CHAPTERS ON CERTAIN THINGS SAYS THEODORE BOGOSIAN MR BOGOSIAN A FORMER
PRODUCER AT WQED WORKED ON THE PROGRAM SPACE AGE WHICH FIZZLED AFTER SIX
EPISODES

BY THE TIME MR KAISER RETIRED LAST JUNE AT AGE 65 THE STATION WAS HANGING
BY A THREAD PASSED OVER FOR THE TOP JOB MR SKINNER QUIT SHORTLY
THEREAFTER BOTH MEN RECEIVE PENSIONS OF MORE THAN 100000 A YEAR

DONALD KORB A RETIRED WESTINGHOUSE ELECTRIC CORP TREASURER AND THE FORMER
HEAD OF WQED'S FINANCE COMMITTEE TOOK OVER AS ACTING CHIEF EXECUTIVE
OFFICER AND NOTES HE INITIALLY SPENT 70 TO 80 HOURS A WEEK WORKING JUST TO
STABILIZE THE SITUATION HE HAS SLASHED STAFF BY 25 CUT TOP SALARIES AND
AMENDED PAST ACCOUNTING PRACTICES HE ACKNOWLEDGES WERE VERY SHODDY

SHOCKED BY THE FERVOR OF PUBLIC OUTCRY AGAINST WQED MR KORB ALSO TURNED
OVER THE STATION'S FINANCIAL RECORDS TO J ALAN JOHNSON A FORMER US
ATTORNEY TO INVESTIGATE THE STATION'S PAST PRACTICES AND DISPEL THE CLOUD
THAT HANGS OVER ITS OPERATIONS A FINAL REPORT IS PENDING

THE STATION SAYS ITS LATEST FINANCIAL FIGURES SHOW WQED RAISED 52 MILLION
OR ABOUT 18 OF ITS REVENUE FROM SUBSCRIBERS IN THE YEAR ENDED JUNE 30
1993 ABOUT 179 MILLION OR 63 OF ITS REVENUE STEMMED LARGELY FROM
GOVERNMENT SOURCES INCLUDING PBS THE NATIONAL ENDOWMENT FOR THE ARTS AND
FEDERAL AND STATE GRANTS ANOTHER 1 MILLION CAME FROM CORPORATE
UNDERWRITING WHILE THE REST CAME FROM MAGAZINE AD SALES AND OTHER SOURCES

WITH WQED'S CURRENT DEFICIT AND PROJECTED REVENUE OF 26 MILLION FOR THE
NEXT FISCAL YEAR A TURNAROUND ISN'T GOING TO BE EASY MR KORB CONCEDES
WE NEED A LOT OF SKILL AND A LITTLE BIT OF LUCK TO SURVIVE HE SAYS

WQED STILL COPRODUCES WHERE IN THE WORLD IS CARMEN SANDIEGO A POPULAR
CHILDREN'S GEOGRAPHYGAME SERIES WITH WGBH IN BOSTON FRED ROGERS LONG AGO
SET UP AN INDEPENDENT PRODUCTION COMPANY FOR MISTER ROGERS' NEIGHBORHOOD
THOUGH HE STILL RENTS WQED STUDIO SPACE WQED PRODUCED JUST TWO PROGRAMS
BROADCAST NATIONALLY LAST YEAR QUITE A COMEDOWN FROM ITS PAST GLORY DAYS
WQED PRODUCED A PROGRAM ON BREAST CANCER THAT WAS UNDERWRITTEN WITH 750000
FROM AVON AND ANOTHER ON NURSES WAS SPONSORED BY A PITTSBURGH AREA
HOSPITAL

IT HAS PRODUCED SEVERAL NOSTALGIC AND POPULAR SHOWS ON PITTSBURGH'S HISTORY
BOTH NOW AND UNDER MR KAISER THOUGH IT HAS DONE LITTLE TO REFLECT WHAT IS
HAPPENING IN THE CITY TODAY

WQED IS SEARCHING FOR A PERMANENT CHIEF EXECUTIVE WHOM MR KORB SAYS WILL
BE PAID SOMETHING LESS THAN 200000 SOME PEOPLE ARE MORE WILLING TO DO
GOD'S WORK THAN OTHERS SAYS MR KORB WHO IS BEING PAID 10000 A MONTH
I'D SUBMIT THAT IF YOU WERE TO PAY SAY 120000 YOU'RE NOT GOING TO FIND
SOMEONE WHO WOULD DO THAT JOB AND IF YOU DID THEY'D PROBABLY FAIL
9401170109 940117 INTERNATIONAL PARLIAMENT IS DISSOLVED ELECTION
DATE SET IN ITALY

MILAN NEARLY A YEAR AFTER ITALIANS VOTED OVERWHELMINGLY IN FAVOR OF A
REFERENDUM CHANGING THEIR SCANDALPLAGUED POLITICAL SYSTEM A DATE FOR EARLY
PARLIAMENTARY ELECTIONS HAS BEEN SET FOR MARCH 27

PRESIDENT OSCAR LUIGI SCALFARO YESTERDAY DISSOLVED PARLIAMENT AND REJECTED
PREMIER CARLO A CIAMPI'S RESIGNATION ASKING HIM TO REMAIN AS HEAD OF A
CARETAKER GOVERNMENT UNTIL ELECTIONS ARE HELD MR CIAMPI OFFERED HIS
RESIGNATION THURSDAY DURING A NOCONFIDENCE VOTE IN PARLIAMENT ON HIS
EIGHTMONTHOLD GOVERNMENT

THE MARCH VOTE IS LIKELY TO MARK THE END OF AN ERA IN ITALY FOLLOWING
TUMULTUOUS CORRUPTION SCANDALS THAT DEVASTED ITS IMAGE THE GOVERNING
COALITION LED BY THE CHRISTIAN DEMOCRATIC PARTY IS ALMOST SURE TO BE OUSTED
FROM ITS NEAR HALFCENTURY DOMINATION OF ITALIAN POLITICS NEW ELECTORAL
RULES WHICH CHANGE THE WAY PARLIAMENT IS ELECTED ALSO WILL MARKEDLY ALTER
THE COUNTRY'S POLITICAL MAP

IN A LETTER TO THE HEADS OF PARLIAMENT MR SCALFARO CITED THE SUCCESS OF
THE APRIL REFERENDUM THE EFFECTS OF CORRUPTION SCANDALS AND THE RESULTS OF
LOCAL ELECTIONS AS REASONS FOR THE EARLY DISSOLUTION OF PARLIAMENT THE
REFERENDUM CALLED FOR A SUBSTANTIAL AND PROFOUND MODIFICATION OF THE
POLITICAL ELECTION SYSTEM MR SCALFARO SAID 9401170108 940117 KIDNAPPER
READS FIRM'S FINANCIAL DATA TO PICK VICTIM BUT ATTEMPT IS FOILED  
BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL

KENNETH FAY NEAL HAD DONE HIS HOMEWORK

THE 43YEAROLD DRIFTER HAD STUDIED MOBILE TELECOMMUNICATIONS TECHNOLOGIES
CORP'S FINANCIAL FILINGS HE KNEW THAT JAI BHAGAT WAS THE TELECOMMUNICATION
COMPANY'S EXECUTIVE VICE PRESIDENT AND A DIRECTOR HE KNEW ROUGHLY WHAT MR
BHAGAT WAS PAID AND HOW MUCH HE WAS WORTH

AND HE KNEW APPARENTLY THAT MR BHAGAT WAS IN CALIFORNIA ON BUSINESS AND
WOULDN'T RETURN TO HIS HOME IN JACKSON MISS UNTIL LATE IN THE EVENING
LAST WEDNESDAY

THUS THAT NIGHT AT ABOUT 730 PM MR NEAL WEARING A SKI MASK AND
BRANDISHING A PISTOL BROKE INTO MR BHAGAT'S HOUSE BOUND AND GAGGED THE
EXECUTIVE'S WIFE AND 17YEAROLD DAUGHTER AND WAITED

THE NEXT 24 HOURS ACCORDING TO LAWENFORCEMENT OFFICIALS WOULD SEE THE
KIDNAPPING OF MR BHAGAT HIMSELF THE UNFOLDING OF AN ELABORATE SCHEME BY
MR NEAL TO MAKE OFF WITH 750000 AND THE FATAL WOUNDING OF THE KIDNAPPER
IN A GUNFIGHT WITH POLICE IN A GROCERYSTORE PARKING LOT MR BHAGAT HIS
WIFE AND DAUGHTER ALL SURVIVED UNHARMED

ONLY ON FRIDAY DID JACKSON WHERE MTEL IS BASED AND A PATRICIAN TOWN OF THE
DEEP SOUTH LEARN OF THE FAMILY'S ABDUCTION OVER THE WEEKEND POLICE
CONTINUED TO PIECE TOGETHER A PORTRAIT OF MR NEAL AS WELL AS ANSWERS TO
HOW AND WHY HE CHOSE MR BHAGAT AS A TARGET

IT DOESN'T APPEAR THAT MR NEAL HAD ANY CONNECTION TO MTEL SAID MC
OVERTON A SPECIAL AGENT OF THE FEDERAL BUREAU OF INVESTIGATION RATHER MR
NEAL HAD KNOWLEDGE OF MR BHAGAT'S POSITION AT THE COMPANY AND HIS STATUS
IN THE COMMUNITY IT WAS STRICTLY MONETARY

INDEED IN AN INTERVIEW FRIDAY MR BHAGAT 47 DESCRIBED THE EVENTS OF THE
PREVIOUS DAY NOTING THAT HIS ABDUCTOR WAS AMAZINGLY FRANK AT TIMES IN
EXPLAINING HOW HE HAD COME TO BE STANDING IN THE BHAGATS' HOUSE WITH A GUN
POINTED TOWARD THEIR HEADS

WHEN MR BHAGAT OPENED THE DOOR TO HIS HOME AT ABOUT 1040 PM ON
WEDNESDAY HE FOUND HIS WIFE JACKIE WITH HER HANDS TIED AND HER MOUTH
TAPED SHUT HIS DAUGHTER MELANIE SIMILARLY GAGGED WAS BOUND TO A CHAIR
AND BLINDFOLDED STANDING OFF TO THEIR SIDE WAS A MAN WITH A MASK

HE TOLD ME MISTER I HAVE A GUN IF YOU COOPERATE YOU WON'T GET
HURT' MR BHAGAT RECALLED I THOUGHT IT WAS A JOKE

THE ABDUCTOR WHOM LAWENFORCEMENT OFFICIALS IDENTIFIED FRIDAY AS KENNETH
NEAL A DRIFTER WITH TIES TO JACKSON REMAINED AWAKE THROUGH WEDNESDAY
NIGHT HOLDING THE FAMILY HOSTAGE HE OBVIOUSLY HAD DONE SOME RESEARCH
MR BHAGAT SAID FRIDAY HE SEEMED TO KNOW A LOT ABOUT MTEL HE KNEW WHAT MY
SALARY WAS HE SAID HE HAD READ MTEL'S REPORTS APPARENTLY MR NEAL HAD
ALSO CONSIDERED A SECOND MTEL EXECUTIVE AS A POSSIBLE QUARRY BUT HE SAID I
WAS AN EASIER TARGET MR BHAGAT RECALLED HE SAID THE OTHER FELLOW HAD
MORE SECURITY AT HIS HOME

ON THURSDAY MR NEAL ORDERED MRS BHAGAT AND HER DAUGHTER TO DRIVE TO THEIR
LOCAL BANK AND WITHDRAW 750000 MR NEAL MEANWHILE DROVE AWAY WITH MR
BHAGAT WHO WAS BLINDFOLDED IN A SECOND FAMILY VEHICLE THE TWO GROUPS
STAYED IN CONTACT BY MEANS OF CELLULAR PHONES BANK OFFICIALS QUESTIONING
THE LARGE AMOUNT OF MONEY THAT MRS BHAGAT ASKED TO WITHDRAW CONTACTED THE
FBI MRS BHAGAT THEN REVEALED THE SITUATION TO LAWENFORCEMENT OFFICIALS
WHO BEGAN MONITORING HER MOVEMENTS

AFTER LEAVING THE BANK MRS BHAGAT WAS ORDERED BY PHONE TO MEET MR NEAL
AT A PARKING LOT ON THE NORTH SIDE OF THE CITY THERE SHE HANDED THE MONEY
TO MR NEAL WHO DROVE OFF WITH MR BHAGAT FOLLOWED AT A DISTANCE BY
POLICE FINALLY AT ABOUT 9 PM MR NEAL PARKED AT A GROCERY STORE GOT
OUT OF THE CAR WITH THE RANSOM IN HIS HANDS AND HEADED TOWARD A SECOND
PARKED CAR AT THAT POINT POLICE ORDERED MR NEAL TO HALT INSTEAD HE
OPENED FIRE

MY FIRST INSTINCT WAS THAT HE HAD SHOT AT ME BUT MISSED SAID MR BHAGAT
WHO WAS STILL SITTING IN THE CAR BLINDFOLDED WHEN THE GUNFIRE ERUPTED MR
NEAL WAS HIT SEVERAL TIMES AND TAKEN TO A LOCAL HOSPITAL WHERE HE DIED FROM
HIS WOUNDS NO ONE ELSE WAS INJURED

OVER THE WEEKEND RESIDENTS OF JACKSON RECALLED A SIMILAR INCIDENT IN 1988
WHEN THE WIFE OF ONE OF THE STATE'S MOST PROMINENT BUSINESSMEN ROBERT
HEARIN WAS KIDNAPPED IN A CASE THAT DREW NATIONWIDE ATTENTION MR HEARIN
PAID AN ESTIMATED 1 MILLION IN RANSOM BUT HIS WIFE WAS NEVER FOUND
FRIDAY EXECUTIVES AT MTEL SAID THEY WERE STUNNED BY THE INCIDENT BUT THE
COMPANY DECLINED TO DISCUSS WHAT PROTECTIVE MEASURES IF ANY WERE PROVIDED
FOR EXECUTIVES OR WHAT MEASURES MIGHT BE ADDED IN THE FUTURE

FOR HIS PART MR BHAGAT SAID FRIDAY THAT HE WAS JUST GLAD MY FAMILY AND I
ARE ALIVE BUT HE PROFESSED TO BE MYSTIFIED BY THE STRANGER IN HIS HOME

HE WAS ACTUALLY VERY NICE VERY RESPECTFUL MR BHAGAT SAID HE SEEMED TO
ADMIRE WHAT I DID 9401170107 940117 AMERICAN ELECTRIC POWER UNIT

COLUMBUS OHIO AMERICAN ELECTRIC POWER CO'S COLUMBUS SOUTHERN POWER CO
UNIT SAID IT WILL REDEEM ON FEB 12 THE ENTIRE 100 MILLION PRINCIPAL AMOUNT
OUTSTANDING OF ITS 8 5/8 FIRSTMORTGAGE BONDS DUE 1996 AND THE ENTIRE 20
MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 9 FIRSTMORTGAGE BONDS DUE 1999

THE REDEMPTION PRICE FOR THE 8 5/8 BONDS WILL BE 100 OF THE PRINCIPAL
AMOUNT OF EACH BOND PLUS ACCRUED INTEREST FROM FEB 1 TO FEB 12 TO BE
PAID UPON PRESENTATION OF THE BONDS INTEREST PAYABLE FEB 1 TO RECORD
HOLDERS OF THE BONDS WILL BE PAID AS USUAL

THE REDEMPTION PRICE FOR THE 9 BONDS WILL BE 10174 OF THE PRINCIPAL
AMOUNT OF EACH BOND PLUS ACCRUED INTEREST FROM LAST DEC 1 TO FEB 12 TO
BE PAID UPON PRESENTATION OF THE BONDS

COLUMBUS SOUTHERN ALSO SAID IT WILL REDEEM THE 1 MILLION PRINCIPAL AMOUNT
OF ITS 9 FIRST MORTGAGE BONDS DUE 2017 ON MARCH 1 THE PRINCIPAL AMOUNT CAN
BE REDEEMED AT THE SPECIAL REDEMPTION PRICE OF 100 OF THE PRINCIPAL AMOUNT
OF EACH BOND TO BE PAID UPON PRESENTATION OF THE BONDS CALLED FOR
REDEMPTION INTEREST PAYABLE MARCH 1 WILL BE PAID AS USUAL 9401170106
940117 INTERNATIONAL JAPAN PROBES ILLEGAL EXPORTS TO NORTH KOREA 
 BY JATHON SAPSFORD AND DAVID P HAMILTON STAFF REPORTERS OF THE
WALL STREET JOURNAL

TOKYO JAPANESE AUTHORITIES ARE CONDUCTING A WIDESPREAD PROBE INTO THE
FLOW OF HIGH TECHNOLOGY FROM JAPANESE COMPANIES TO NORTH KOREA THE ISOLATED
COMMUNIST NATION WIDELY SUSPECTED OF DEVELOPING NUCLEAR WEAPONS

TOKYO METROPOLITAN POLICE SAID FRIDAY THEY ARE MAKING SEARCHES AND
QUESTIONING OFFICIALS AT NEARLY A DOZEN DIFFERENT COMPANIES IN AND AROUND
TOKYO POLICE SUSPECT THE COMPANIES MAY HAVE USED A COMPLICATED PIPELINE TO
EXPORT AN ELECTRONICS DEVICE THAT CAN IMPROVE THE ACCURACY OF MISSILES

JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WHICH ENFORCES THE
NATION'S EXPORT CONTROL LAWS ALSO HAS LAUNCHED AN INVESTIGATION MINISTRY
OFFICIALS SAID

JAPAN'S MOVES MARK THE FIRST TIME THAT ANY NATION HAS CONDUCTED SUCH A
PUBLIC INVESTIGATION SINCE NORTH KOREA'S NUCLEAR PROGRAM TRIGGERED
INTERNATIONAL TENSIONS OVER THE PAST YEAR PYONGYANG INSISTS ITS NUCLEAR
REACTORS ARE PURELY FOR CIVILIAN ENERGY USE BUT ITS PERSISTENT REFUSAL TO
ALLOW INTERNATIONAL INSPECTION HAS FUELED SUSPICION IT IS DEVELOPING ATOMIC
WEAPONS AFTER MONTHS OF DIFFICULT NEGOTIATIONS NORTH KOREA AGREED EARLIER
THIS MONTH TO ALLOW INSPECTIONS OF ITS DECLARED NUCLEAR RESEARCH SITES BUT
THE US IS CONTINUING TO PRESS FOR FURTHER INSPECTIONS OF ADDITIONAL SITES
AND IS STILL SEEKING TO HAVE NORTH KOREA REAFFIRM ITS OBLIGATIONS UNDER THE
NUCLEAR NONPROLIFERATION TREATY

SOME US EXPERTS CLAIM PYONGYANG ALREADY HAS BUILT ONE OR MORE BOMBS NORTH
KOREA ALSO RECENTLY TESTED A HEAVY MISSILE CALLED THE RODONG1 WHICH IS
THOUGHT TO BE CAPABLE OF DELIVERING A NUCLEAR WARHEAD TO PARTS OF JAPAN

IT SEEMS INCREDIBLE THAT JAPANESE WOULD HELP THE NORTH KOREAN MISSILE
PROGRAM SINCE THE RODONG1 IS AIMED AT THEM SAID GARY MILHOLLIN HEAD OF
THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL IN WASHINGTON DC BUT IT
WOULDN'T BE THE FIRST TIME THAT FIRMS UNDERMINED THEIR OWN COUNTRY FOR
MONEY

JAPAN IN PARTICULAR HAS A COMPLEX RELATIONSHIP WITH NORTH KOREA AND
TECHNOLOGY EXPORTERS MAY HAVE HAD POLITICAL AS WELL AS PROFIT MOTIVES
JAPAN IS HOME TO ROUGHLY 700000 ETHNIC KOREANS 150000 OF WHOM ARE LOYAL
SUPPORTERS OF NORTH KOREA'S KIM IL SUNG ANALYSTS SAY TOKYO IS AFRAID OF
OFFENDING PYONGYANG SUPPORTERS LEST THEY CAUSE UNREST IN JAPAN

NORTH KOREA IS UNDERSTOOD TO BE HIGHLY DEPENDENT ON THE SUPPORT OF ETHNIC
KOREAN SYMPATHIZERS RESIDING IN JAPAN AN ORGANIZATION OF NORTH KOREAN
SUPPORTERS IN JAPAN REPORTEDLY CHANNELS ABOUT 600 MILLION A YEAR TO NORTH
KOREA

THE JAPANESE COMPANIES ARE SUSPECTED OF SHIPPING SPECTRUM ANALYZERS WHICH
ARE WIDELY USED IN INDUSTRY TO STUDY AND IMPROVE RADIO AND TELEVISION
BROADCASTING METHODS DEFENSE ANALYSTS SAID MORE SOPHISTICATED SPECTRUM
ANALYZERS HOWEVER CAN BE USED TO FINETUNE RADAR SIGNALS AS WELL MORE
ACCURATE RADAR WOULD ALLOW WEAPON DEVELOPERS TO IMPROVE MISSILE ACCURACY

THE LEADING INDUSTRIALIZED NATIONS INCLUDING JAPAN PROHIBIT THE EXPORT OF
TECHNOLOGY WITH POTENTIAL MILITARY APPLICATIONS TO COMMUNIST NATIONS
JAPANESE OFFICIALS INSIST THEY HAVE BEEN ESPECIALLY CAREFUL TO CURB SUCH
SALES SINCE A TOSHIBA CORP AFFILIATE CAUSED A STIR FOR SELLING EQUIPMENT IN
THE EARLY 1980S THAT WAS USED TO MAKE QUIET PROPELLERS FOR SOVIET
SUBMARINES

POLICE ON FRIDAY DECLINED TO IDENTIFY WHICH COMPANIES ARE SUSPECTED OF THE
ILLEGAL EXPORTS TO NORTH KOREA JAPANESE MEDIA HOWEVER WIDELY REPORTED
THAT SEVERAL YEARS AGO A SMALL TRADING COMPANY CALLED YOKOHAMA MACHINERY
TRADING CORP EXPORTED SPECTRUM ANALYZERS TO NORTH KOREA THROUGH CHINA
OFFICIALS AT THE COMPANY WHICH IS REGISTERED AS HAVING ONLY THREE
EMPLOYEES WERE NOT AVAILABLE FOR COMMENT

SEVERAL JAPANESE COMPANIES MAKE SPECTRUM ANALYZERS ON THE TOKYO STOCK
MARKET SHARES IN ELECTRONIC EQUIPMENT MAKER ANRITSU CORP FELL 11 IN HEAVY
TRADING ON FRIDAY ON RUMORS THAT AN ANRITSU SUBSIDIARY HAD DELIVERED THE
TECHNOLOGY TO THE EXPORTERS ANRITSU OFFICIALS AFTER REFUSING TO RETURN
REPEATED TELEPHONE CALLS HELD A NEWS CONFERENCE FRIDAY WITHOUT INVITING
FOREIGN JOURNALISTS ON SATURDAY MAJOR JAPANESE NEWSPAPERS CARRIED ARTICLES
QUOTING OFFICIALS AT AN UNIDENTIFIED ELECTRONICS COMPANY ADMITTING TO THE
SALE OF THE SPECTRUM ANALYZERS

JENNIFER CODY CONTRIBUTED TO THIS ARTICLE 9401170105 940117 FOREIGN
EXCHANGE STRONG US ECONOMY EXPECTED DROP IN RATES ELSEWHERE LIKELY
TO LIFT DOLLAR  BY TRACY SACCO AND JOHN P HUGHES SPECIAL TO THE
WALL STREET JOURNAL

NEW YORK DOLLAR SENTIMENT LIKELY WILL REMAIN BULLISH THIS WEEK AS THE
CURRENCY BENEFITS FROM MORE SIGNS OF A STRENGTHENING US ECONOMY AND
EXPECTATIONS OF DECLINING INTEREST RATES IN OTHER MAJOR NATIONS

THE US CURRENCY IS EXPECTED TO GAIN MORE GROUND AGAINST THE MARK 
ESPECIALLY IF THE BUNDESBANK'S POLICYMAKING PANEL TRIMS IMPORTANT INTEREST
RATES AT ITS SCHEDULED MEETING THURSDAY

SOME ECONOMISTS ALSO EXPECT THE DOLLAR TO CLIMB AGAINST THE YEN CITING
POSSIBLE DISAPPOINTMENT OVER ECONOMIC STIMULUS MEASURES TO BE UNVEILED BY
THE JAPANESE GOVERNMENT AND THE POTENTIAL FOR A DECLINE IN INTEREST RATES

THE US ECONOMY WILL CONTINUE TO EXPERIENCE STRONG GROWTH AND DESPITE
THE MODEST RECOVERY THE YEN STAGED FROM ITS EXTREME LOWS A FURTHER EASING
IS STILL LIKELY IN JAPAN SAYS JOHN LIPSKY CHIEF ECONOMIST AT SALOMON
BROTHERS INC

LATE FRIDAY IN NEW YORK THE DOLLAR WAS TRADING AT 17495 MARKS AND 11106
YEN COMPARED WITH 17505 MARKS AND 11176 YEN LATE THURSDAY

ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11135 YEN AND AT
17505 MARKS

MR LIPSKY AND OTHERS SAY THE DOMINANT FACTOR IN CURRENCIES TRADING IN THE
WEEKS AHEAD WILL BE THE CONTINUED STRENGTH OF THE US ECONOMY

LAST WEEK A BARRAGE OF POSITIVE ECONOMIC DATA CONFIRMED WHAT MANY
ECONOMISTS HAVE BEEN SAYING THAT US GROSS DOMESTIC PRODUCT GROWTH MAY
HAVE TOPPED 5 IN THE FOURTH QUARTER AND THAT A SIGNIFICANT SLOWING OF
ACTIVITY IN THE FIRST QUARTER ISN'T NECESSARILY IN THE CARDS

MANUFACTURING ACTIVITY IN PARTICULAR SEEMS POISED FOR SUSTAINABLE GAINS

MOST ECONOMISTS SEE US INTEREST RATES AS STABLE OR CLIMBING WHILE RATE
CUTS ARE PROBABLE IN MANY STAGNATING EUROPEAN ECONOMIES RISING RATES MAKE
DOLLARDENOMINATED DEPOSITS MORE ATTRACTIVE TO INVESTORS

THE US ECONOMY ALSO APPEARS TO BE DRAWING MOMENTUM FROM A REBOUND IN THE
HOUSING INDUSTRY THE PACE OF HOUSING STARTS IN DECEMBER IS SCHEDULED TO BE
RELEASED THURSDAY

DEVELOPMENTS IN EUROPE ALSO WILL BE IMPORTANT

MARKET WATCHERS CONTINUE TO PLAY THE GUESSING GAME OF WHEN NOT IF CUTS IN
IMPORTANT INTEREST RATES WILL TAKE PLACE IN GERMANY MOST DOUBT THAT THE
BUNDESBANK WILL ALTER POLICY AT THURSDAY'S MEETING ALTHOUGH AN EASING DOES
SEEM LIKELY BEFORE THE END OF FEBRUARY THEY ADD

HOWEVER THE BUNDESBANK'S HAND COULD BE FORCED SOONER SHOULD THE MARK
DECLINE SHARPLY SAYS SALOMON'S MR LIPSKY THE RECENT WEAKNESS OF THE
DEUTSCHE MARK AGAINST THE DOLLAR REFLECTS GROWING PESSIMISM ABOUT THE
OUTLOOK FOR GERMANY'S RECOVERY HE NOTES

WITH THE RECENT STRENGTH OF THE DOLLAR AND IN THE FACE OF A WEAKENING MARK
THE BUNDESBANK DOESN'T WANT TO EASE MONETARY POLICY NOW SAYS SANDY BATTEN
SENIOR ECONOMIST WITH CITIBANK WITH THE MARKETS ANTICIPATING INTEREST RATES
TO FALL NO ONE WILL HOLD THE MARK IN ANTICIPATION OF A CUT THEY'LL HOLD
IT AFTER

ANALYSTS BELIEVE CUTS COULD TAKE PLACE AT THE COUNCIL'S FEB 3 SESSION
AFTER RELEASE OF JANUARY INFLATIONARY DATA

EARL JOHNSON VICE PRESIDENT OF HARRIS TRUST & SAVINGS BANK EXPECTS GERMAN
CENTRAL BANKERS TO CUT THE DISCOUNT AND LOMBARD RATES BY AS MUCH AS 50 BASIS
POINTS OR 1/2 A PERCENTAGE POINT A CUT IN THESE RATES WOULD BOLSTER THE
DOLLAR AGAINST THE MARK HE SAYS

AFTER A RATE CUT BY THE BUNDESBANK AUSTRIA BELGIUM AND FRANCE WILL LIKELY
FOLLOW SUIT ANALYSTS ADD THE BANK OF ENGLAND ALSO IS EXPECTED TO CUT ITS
BASE RATE BY 1/2 PERCENTAGE POINT THOUGH NOT IMMEDIATELY 9401170104
940117 POLITICS & POLICY SYRIA'S ASSAD AFTER TALKS WITH CLINTON SAYS
HE SEEKS NORMAL' TIES WITH ISRAEL  BY MICHAEL K FRISBY STAFF
REPORTER OF THE WALL STREET JOURNAL

GENEVA SYRIAN PRESIDENT HAFEZ ALASSAD AGREED TO SEEK NORMAL PEACEFUL
RELATIONS WITH ISRAEL UNDER CERTAIN CONDITIONS MARKING WHAT US OFFICIALS
CALLED A BREAKING OF SIGNIFICANT NEW GROUND IN MIDEAST PEACE TALKS

MR ASSAD AND PRESIDENT CLINTON MET YESTERDAY FOR FOUR HOURS AND 20 MINUTES
WITH AIDES BEFORE A ONEONONE ENCOUNTER LASTING 50 MINUTES THE TWO
SESSIONS RESULTED IN STATEMENTS INDICATING PROGRESS IN RESOLVING A MAJOR
STUMBLING BLOCK IN PEACE NEGOTIATIONS HOW SYRIA WOULD DEFINE ITS PEACE WITH
ISRAEL

ASKED IF MR ASSAD'S DEFINITION OF PEACE WOULD MEAN OPEN BORDERS FREE TRADE
AND DIPLOMATIC RELATIONS TERMS THAT ISRAEL HAS SOUGHT FROM A RELUCTANT
SYRIA MR CLINTON SAID AT A NEWS CONFERENCE AFTER THE MEETING THE SHORT
ANSWER IS YES I BELIEVE THAT PRESIDENT ASSAD HAS MADE A CLEAR FORTHRIGHT
AND VERY IMPORTANT STATEMENT ON NORMAL PEACEFUL RELATIONS

WHEN ASKED THE SAME QUESTION MR ASSAD A VETERAN OF WAR WITH ISRAEL AND A
CRAFTY NEGOTIATOR WOULDN'T ELABORATE BUT HE STRESSED THE NEED FOR A
COMPREHENSIVE PEACE

IN HONOR WE FOUGHT SAID MR ASSAD SOUNDING THE CRY OF A WARRIOR LAYING
DOWN HIS SWORD IN HONOR WE NEGOTIATE AND IN HONOR WE SHALL MAKE PEACE
IF ISRAELI LEADERS RESPOND IN KIND THE SYRIAN LEADER SAID A NEW ERA OF
SECURITY AND STABILITY IN WHICH NORMAL PEACEFUL RELATIONS AMONG ALL SHALL
DAWN ON THE REGION

IN THE PAST WHEN MR ASSAD HAS SPOKEN ABOUT COMPREHENSIVE PEACE HE HAS
MEANT A PEACE BETWEEN ISRAEL AND ALL ITS ARAB NEIGHBORS AND NEGOTIATING
PARTNERS THAT INCLUDES JORDAN SYRIA LEBANON AND THE PALESTINIANS
FURTHER WHEN MR ASSAD HAS USED THE TERM JUST PEACE AS HE DID YESTERDAY
HE WAS REFERRING TO A PEACE IN WHICH ARABS WIN BACK THE LANDS OCCUPIED BY
ISRAEL

THIS ISSUE IS IMPORTANT BECAUSE THIS DIRECTLY TOUCHES ON THE CURRENT
STALEMATE IN SYRIANISRAELI TALKS ISRAEL WANTS MR ASSAD TO DESCRIBE THE
TYPE OF PEACE HE IS WILLING TO HAVE BEFORE ISRAEL ANSWERS MR ASSAD'S
QUESTION ABOUT WHETHER IT WILL RETURN ALL OF THE GOLAN HEIGHTS MR ASSAD
WANTS IT THE OTHER WAY AROUND

US OFFICIALS STRESSED THE FACT THAT MR ASSAD FOR THE FIRST TIME TALKED
ABOUT NORMAL RELATIONS WITH ISRAEL A MOVE THEY HOPE WILL SPUR TALKS
BETWEEN THE TWO NATIONS TWO SENIOR US OFFICIALS DENNIS ROSS THE STATE
DEPARTMENT'S MIDDLE EAST COORDINATOR AND MARTY INDYK OF THE NATIONAL
SECURITY COUNCIL LEFT LAST NIGHT TO BRIEF ISRAELI LEADERS ON THE TALKS

NEITHER MR CLINTON NOR HIS AIDES WOULD STATE PUBLICLY WHETHER MR ASSAD HAD
DETAILED IN THE TALKS EXACTLY WHAT HE MEANT BY NORMAL RELATIONS BUT
OFFICIALS SAID PRIVATELY THAT THE SYRIAN LEADER CLEARLY UNDERSTANDS WHAT IS
BEING ASKED OF HIM AT ONE POINT MR ASSAD TOLD REPORTERS THAT HE AND MR
CLINTON AGREED ON THESE ISSUES THE REQUIREMENTS FOR PEACE WE WILL RESPOND
TO THESE REQUIREMENTS HE CAUTIONED HOWEVER THAT THE RESULTS WOULD HINGE
ON THE PEACE NEGOTIATIONS

MORE BROADLY THE SUBSTANCE OF THE TALKS SIGNALED THAT MR ASSAD IS READY TO
PLAY BALL AGAIN IN THE PEACE PROCESS THE SYRIAN LEADER LONG A HARDLINER
IN DEALING WITH ISRAEL WAS PEEVED THAT ISRAEL HAD STRUCK A SEPARATE PEACE
DEAL WITH THE PALESTINE LIBERATION ORGANIZATION FEEDING HIS SUSPICIONS THAT
ISRAEL WAS TRYING TO ISOLATE HIM THE US THIS WEEKEND WAS GIVING HIM THE
CHANCE TO GET BACK INTO THE THICK OF THE PEACE PROCESS

CLEARLY MR ASSAD AGREED BUT ON HIS OWN TERMS FOR INSTANCE HE STILL
FROWNED ON SEPARATE PEACE AGREEMENTS WITH ISRAEL HISTORICAL EVIDENCE BOTH
PAST AND PRESENT MR ASSAD SAID HAVE PROVED THAT SEPARATE PEACE AND
PARTIAL SOLUTIONS WERE NOT CONDUCIVE TO THE ESTABLISHMENT OF REAL PEACE IN
THE REGION IN THIS REGARD I WOULD LIKE TO EXPRESS MY SATISFACTION THAT
PRESIDENT CLINTON HIMSELF HAS COMMITTED TO THE OBJECTIVE OF COMPREHENSIVE
PEACE

IN TURN AIDES SAID THAT MR CLINTON PRESSED IN THE TALKS ON THE ISSUE OF
TERRORISM SPECIFICALLY THE 1988 BOMBING OF PAN AMERICAN FLIGHT 103 KILLING
ALL 259 PEOPLE ABOARD AND 11 ON THE GROUND IN LOCKERBIE SCOTLAND TWO
SUSPECTS IN THE BOMBING ARE BELIEVED TO BE IN LIBYA WHICH WON'T EXTRADITE
THEM FOR PROSECUTION MR ASSAD SAID CLINTON AIDES INDICATED THAT HE
DIDN'T HAVE ANY ADDITIONAL INFORMATION ON THE BOMBING BUT SHOWED
WILLINGNESS TO COOPERATE

US OFFICIALS SAID THEY LEFT THE TALKS HOPEFUL THERE MAY ALSO BE A
BREAKTHROUGH ON THE WIDER TERRORISM QUESTION SYRIA HAS BEEN ACCUSED OF
SUPPORTING TERRORISM BUT IT OFTEN HAS INSISTED THAT WHAT OTHER NATIONS SEE
AS TERRORISTS ARE FREEDOM FIGHTERS MR CLINTON AND MR ASSAD TALKED ABOUT
ESTABLISHING A MECHANISM THAT COULD RESOLVE THESE TWO VIEWPOINTS

AIDES WERE UPBEAT THAT THE SYRIANS ALSO WANTED TO RESOLVE THE QUESTION
HOPING PERHAPS THAT IT COULD LEAD TO THEIR REMOVAL FROM THE STATE
DEPARTMENT'S LIST OF TERRORIST NATIONS SYRIA HAS BEEN ON THE LIST SINCE
1979 AND THAT STATUS RESTRICTS US TRADE WITH SYRIA

IF MR CLINTON'S FIRST FACETOFACE MEETING WITH MR ASSAD RESULTS IN A
BREAKTHROUGH IN THE STALLED PEACE TALKS IT COULD WIND UP AS THE MOST
SIGNIFICANT OF THE INITIATIVES ON HIS NINEDAY TREK THROUGH EUROPE AND
RUSSIA A JOURNEY THAT HAS LARGELY BEEN LONG ON IMAGERY BUT SHORT ON LASTING
RESULTS

THE PRESIDENT FOR INSTANCE RECEIVED A SETBACK IN HIS RUSSIAN POLICY WHEN
FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR ANNOUNCED THAT HE WAS LEAVING THE
GOVERNMENT BECAUSE OF HIS FEARS THAT HE WON'T HAVE MUCH INFLUENCE ON
ECONOMIC DECISIONS ALSO MR CLINTON MADE A DEAL WITH UKRAINE TO DISARM ITS
NUCLEAR WEAPONS BUT THE DEAL HAS RUN INTO OPPOSITION IN THE PARLIAMENT AND
FIGHTING IN BOSNIA HAS CONTINUED DESPITE NEW THREATS FROM THE NORTH
ATLANTIC TREATY ORGANIZATION

THE HISTORY OF MIDEAST POLITICS IS THAT WHATEVER PROGRESS WAS MADE YESTERDAY
MAY NOT BE SEEN FOR WEEKS OR EVEN MONTHS NEXT WEEK HOWEVER OBSERVERS WILL
LOOK FOR CONCRETE SIGNS OF PROGRESS WHEN THE NEXT ROUND OF OFFICIAL TALKS
RESUME IN WASHINGTON 9401170103 940117 MARKETING & MEDIA NETHERLANDS
FIRM IN ACCORD TO BUY ADWEEK'S PUBLISHER  BY LAURA BIRD STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK DUTCH PUBLISHER VERENIGDE NEDERLANDSE UITGEVERSBEDRIJVEN BV
AGREED TO BUY BPI COMMUNICATIONS LP THE PUBLISHER OF ADWEEK BILLBOARD
AND 17 OTHER SPECIALTY MAGAZINES FOR 220 MILLION

BPI BASED IN NEW YORK IS ONETHIRD OWNED BY NEW YORK TIMES CO THE VENTURE
CAPITAL FIRM BOSTON VENTURES AND BPI MANAGEMENT OWN THE OTHER TWOTHIRDS

NEW YORK TIMES SAID IT EXPECTS TO RECEIVE 55 MILLION WHEN THE TRANSACTION
IS COMPLETED THE COMPANY ACQUIRED ITS INTEREST IN BPI AS PART OF ITS
ACQUISITION LAST YEAR OF AFFILIATED PUBLICATIONS INC PUBLISHER OF THE
BOSTON GLOBE A NEW YORK TIMES SPOKESWOMAN SAID THE DECISION TO SELL ITS BPI
INTEREST DIDN'T REFLECT SOME BIGGER STRATEGY IT WAS THE MAJORITY HOLDER'S
MAIN DECISION SHE SAID

CLOSELY HELD BPI SAID IT IS PROFITABLE WITH 1993 REVENUE OF 130 MILLION
AND 800 EMPLOYEES THE COMPANY DECLINED TO ESTIMATE PROFITS

VNU WANTS A PLATFORM TO EXPAND IN THE US SAID JERRY HOBBS BPI'S CHIEF
EXECUTIVE BPI IS GOING TO BE THEIR PLATFORM MR HOBBS ADDED THAT BPI'S
MANAGEMENT TEAM WILL REMAIN IN PLACE

IN ADDITION TO ITS SPECIALTY PUBLICATIONS BPI OPERATES A MEDIA MONITORING
SERVICE AND A SPECIALTY BOOK PUBLISHER

THE BPI ACQUISITION WILL NEARLY DOUBLE VNU'S US PRESENCE VNU HAS US
REVENUE OF ABOUT 155 MILLION FROM FINANCIAL DATA PUBLISHING AND MARKETING
INFORMATION SERVICES VNU'S DISCLOSURE INC COLLECTS AND PUBLISHES FINANCIAL
DATA ON NEW YORK AND AMERICAN STOCK EXCHANGE COMPANIES VNU ALSO OWNS
CLARITAS CORP A DATABASE MARKETING RESEARCH COMPANY AND OPERATES
COMPETITIVE MEDIA REPORTING A JOINT VENTURE WITH ARBITRON CO THAT TRACKS
ADVERTISING SPENDING

LOUT SCHOLVINCK VNU DIRECTOR OF GENERAL AFFAIRS SAID VNU IS RUNNING OUT OF
ROOM TO GROW IN THE NETHERLANDS OPPORTUNITIES ARE VERY SELDOM AND VERY
RARE HE SAID WE WANT TO INTERNATIONALIZE OUR ACTIVITIES FROM HOLLAND
ABROAD BPI'S SPECIALIZED PUBLISHING AND INFORMATION SERVICES FIT WELL WITH
VNU'S US ACTIVITIES HE SAID

WITH WORLDWIDE REVENUE OF 12 BILLION VNU IS A LEADING PUBLISHER IN THE
NETHERLANDS IT PUBLISHES WOMEN'S MAGAZINES AND REGIONAL NEWSPAPERS IN THE
NETHERLANDS AND BELGIUM AND BUSINESS AND CONSUMER PERIODICALS IN SEVERAL
OTHER EUROPEAN COUNTRIES THE COMPANY ALSO HAS INTERESTS IN SEVERAL
COMMERCIAL TELEVISION STATIONS IN EUROPE 9401170102 940117 INDUSTRY
FOCUS HMOS ARE EXPECTED TO DELIVER STRONG PROFIT GROWTH  NATION'S
FOCUS ON HEALTH COST CONTAINMENT HELPS TO INCREASE ENROLLMENT  BY
RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL

PRIVATESECTOR HEALTH COST STRATEGIES AND THE DEBATE OVER PRESIDENT
CLINTON'S HEALTHCARE REFORM PLAN ARE FUELING ROBUST EARNINGS GROWTH AT THE
NATION'S HEALTH MAINTENANCE ORGANIZATIONS

ANALYSTS EXPECT HMOS TO REPORT EARNINGS GAINS WELL OVER 20 AND IN ONE
CASE A 73 JUMP FOR THE QUARTER ENDED DEC 31 THE RESULT OF SURGING
ENROLLMENTS AND MODERATING HEALTHCARE COSTS

THE INDUSTRY IS POISED FOR A CONTINUED STELLAR PERFORMANCE ANALYSTS ARGUE
AS IT PLAYS A MAJOR ROLE IN CHANGING HOW HEALTH CARE IS DELIVERED IN THE
US EVEN BEFORE CONGRESS PASSES REFORM LEGISLATION HMOS ARE IN THE
FOREFRONT OF ECONOMICALLY BASED HEALTH REFORM SAID KENNETH S ABRAMOWITZ
ANALYST AT SANFORD C BERNSTEIN & CO THEY ARE DELIVERING
COSTEFFECTIVENESS AND EMPLOYERS AND EMPLOYEES WANT TO BUY INTO THAT
THAT'S WHY THEIR MEMBERSHIP IS GROWING AT 10

BUT THE MEASURE OF THAT SUCCESS ALSO POSES A NEW CHALLENGE AN INDUSTRY THAT
ONCE DEPENDED HEAVILY ON PREMIUM INCREASES FOR PROFIT GROWTH NOW FACES A
CLIMATE WHERE THE ABILITY TO MANAGE COSTS WILL SEPARATE WINNERS FROM LOSERS
PREMIUMS THE MONTHLY MEMBERSHIP CHARGES THAT ARE AN HMO'S REVENUE WILL
RISE NATIONALLY BY 5 TO 6 FOR 1994 AND JUST 3 TO 4 IN CALIFORNIA
ACCORDING TO ELEANOR KERNS ANALYST AT ALEX BROWN & SONS BOSTON THAT'S
DOWN FROM ABOUT 8 NATIONALLY LAST YEAR AND 16 IN 1990 WHILE GROWING
ENROLLMENTS WILL INCREASE REVENUE PROFITS WILL DEPEND ON AMONG OTHER
THINGS HOW SKILLFULLY HMOS WORK WITH DOCTORS AND HOSPITALS TO CONTROL USE
OF SERVICES

WITH BURGEONING MEMBERSHIPS MS KERNS ADDED MANY HMOS HAVE AMASSED ENOUGH
PURCHASING POWER TO NEGOTIATE FAVORABLE CONTRACTS WITH DOCTORS AND
HOSPITALS SEVERAL COMPANIES ARE ALSO GROWING THROUGH ACQUISITION A TREND
REFLECTED IN FHP INTERNATIONAL CORP'S RECENT AGREEMENT TO ACQUIRE TAKECARE
INC A MOVE THAT WOULD DOUBLE ITS ENROLLMENT TO MORE THAN 16 MILLION
MEMBERS

THE MAJOR DRIVER OF HMO PERFORMANCE IS INCREASING ACCEPTANCE AMONG
EMPLOYERS AND CONSUMERS OF MANAGEDCARE EFFORTS TO CONTAIN COSTS
CORPORATIONS ARE FINALLY GETTING MORE SERIOUS ABOUT CONTROLLING HEALTHCARE
COSTS SAID BERNARD F MCDONAGH MANAGING DIRECTOR AT PIPER JAFFRAY INC
MINNEAPOLIS THEY'RE FORCING EMPLOYEES INTO MANAGEDCARE SYSTEMS WITH A
SENSE OF URGENCY THAT THEY DIDN'T HAVE BEFORE

IN ADDITION THE DEBATE OVER PRESIDENT CLINTON'S HEALTH PLAN HAS PUT A
SPOTLIGHT ON HMOS WHICH ARE PART OF THE UNDERPINNINGS OF THE PROGRAM THE
ATTENTION HAS PUT HMO STOCKS ON A ROLLERCOASTER IN RECENT MONTHS BUT SOME
ANALYSTS SUGGEST IT HAS BEEN A BOON TO THE COMPANIES IT HAS INCREASED
AWARENESS OF WHAT MANAGED CARE IS AND THAT AWARENESS HAS STIMULATED
ENROLLMENT MS KERNS SAID

MEANWHILE MANY HMOS ARE USING STATEOFTHEART TECHNOLOGY TO TRACK COSTS
AND THE USE OF SERVICES AND WHAT SOME ANALYSTS CALL THE HILLARY FACTOR A
REFERENCE TO FIRST LADY HILLARY RODHAM CLINTON'S ATTACK ON RUNAWAY COSTS IN
THE SYSTEM HAS PROMPTED MANY PROVIDERS OF SERVICES TO HOLD DOWN PRICES
ALL OF THOSE FACTORS ARE COMING TOGETHER TO GIVE A VERY GOOD COST PICTURE
MS KERNS SAID

THE EXPECTATION THAT THE FEDERAL MEDICARE PROGRAM FOR THE ELDERLY WILL
ENCOURAGE MORE BENEFICIARIES TO JOIN HMOS COULD POSE A PROBLEM FOR SOME
COMPANIES MR MCDONAGH WARNED THE GOVERNMENT IS STILL AN UNRELIABLE PAYER
IN THE MEDICARE BUSINESS HE SAID ADDING THAT FEW HMOS WILL BE ABLE TO
AVOID MEDICARE PATIENTS

SOME HMOS HOWEVER ACTIVELY RECRUIT THEM PACIFICARE HEALTH SYSTEMS INC
CYPRESS CALIF GETS ABOUT 50 OF ITS REVENUE FROM MEDICARE WHICH SET A
RATE INCREASE FOR 1994 OF JUST 25 THE COMPANY WAS EXPECTING ABOUT 5 BUT
PACIFICARE SHARES THE RISK OF SUCH DECISIONS WITH ITS DOCTORS AND HOSPITALS
AND MS KERNS SAID THE LOWER RATE ISN'T LIKELY TO AFFECT 1994 PROFIT

SHE EXPECTS PACIFICARE TO REPORT EARNINGS OF 50 CENTS A SHARE FOR ITS FISCAL
FIRST QUARTER UP 28 FROM 107 MILLION OR 39 CENTS A SHARE A YEAR EARLIER
ON REVENUE OF 4848 MILLION THE ESTIMATE EXCLUDES A TAX GAIN OF 10 CENTS
TO 12 CENTS A SHARE COMMERCIAL ENROLLMENT IS GROWING AT ABOUT 10 ANNUALLY
WHILE ENROLLMENT BY MEDICARE RECIPIENTS IS GROWING AT A 30 CLIP PACIFICARE
DIDN'T COMMENT ON THE FORECAST

UNITED HEALTHCARE CORP MINNEAPOLIS IS EXPECTED TO REPORT A 43 JUMP IN
FOURTHQUARTER EARNINGS TO 66 CENTS OR 67 CENTS A SHARE FROM 322 MILLION
OR 46 CENTS A SHARE A YEAR EARLIER REVENUE WAS 3884 MILLION MS KERNS
EXPECTS THE COMPANY TO REPORT AT LEAST A 20 GROWTH IN ENROLLMENT FOR HMOS
IT HAS OWNED OR MANAGED FOR MORE THAN ONE YEAR ACQUISITIONS OVER THE PAST
YEAR WILL BOOST MEMBERSHIP BY NEARLY 40 SHE SAID THE COMPANY IS ALSO
REAPING BENEFITS FROM SPECIALTY SERVICES INCLUDING ITS DIVERSIFIED
PHARMACEUTICAL SERVICES UNIT WHICH MANAGES PRESCRIPTIONDRUG BENEFIT
PROGRAMS FOR HMOS AND EMPLOYERS UNITED HEALTHCARE DECLINED TO COMMENT ON
THE PREDICTIONS

ANALYSTS EXPECT US HEALTHCARE INC BLUE BELL PA TO POST A 33 EARNINGS
INCREASE TO 73 CENTS OR 74 CENTS A SHARE FROM 55 CENTS A SHARE A YEAR
EARLIER ON REVENUE OF 5733 MILLION MS KERNS SAID THAT THE HMO HAS BEEN
PARTICULARLY EFFECTIVE IN CONTAINING COSTS THROUGH CASE MANAGEMENT AND OTHER
METHODS AND THAT FOURTHQUARTER RESULTS ALSO BENEFITED FROM THE ELIMINATION
OF STATE GOVERNMENTIMPOSED SURCHARGES FOR UNCOMPENSATED CARE IN NEW JERSEY
US HEALTHCARE DECLINED TO COMMENT

FOUNDATION HEALTH CORP RANCHO CORDOVA CALIF IS EXPECTED TO REPORT
EARNINGS FOR ITS FISCAL SECOND PERIOD OF 75 CENTS TO 80 CENTS A SHARE OR AT
LEAST 21 MORE THAN THE 96 MILLION OR 62 CENTS A SHARE A YEAR EARLIER ON
REVENUE OF 3341 MILLION FOUNDATION'S IMMEDIATE FUTURE HOWEVER IS
CLOUDED BY ITS RECENT LOSS OF A 35 BILLION FIVEYEAR CONTRACT TO AETNA
LIFE & CASUALTY CO TO PROVIDE CARE FOR MILITARY RETIREES AND DEPENDENTS
FOUNDATION HAS HAD THE BUSINESS SINCE 1988

THE PENTAGON ORDERED THE CONTRACT REBID AFTER THE US GENERAL ACCOUNTING
OFFICE DETERMINED THAT THE AWARD TO AETNA WAS IMPROPER

EVEN IF FOUNDATION ULTIMATELY FAILS TO WIN THE CONTRACT MR MCDONAGH SAID
ITS COMMERCIAL BUSINESS IS GROWING RAPIDLY AND THE RECENT ACQUISITION OF
CALIFORNIA COMPENSATION INSURANCE CO A WORKER'SCOMPENSATION INSURER WILL
HELP REPLACE LOST REVENUE THE COMPANY DIDN'T HAVE ANY COMMENT ON WALL
STREET EXPECTATIONS

FHP BASED IN FOUNTAIN VALLEY CALIF IS EXPECTED TO POST PROFIT OF 28
CENTS A SHARE FOR ITS FISCAL SECOND QUARTER A 47 JUMP FROM 62 MILLION
OR 19 CENTS A SHARE A YEAR EARLIER ON 4645 MILLION OF REVENUE FHP
DECLINED TO COMMENT

MS KERNS ANTICIPATES THAT OXFORD HEALTH PLANS INC DARIEN CONN WILL
REPORT A 73 JUMP IN EARNINGS FOR THE FOURTH PERIOD TO 26 CENTS A SHARE FROM
24 MILLION OR 15 CENTS A SHARE ADJUSTED FOR A 2FOR1 STOCK SPLIT
OXFORD DIDN'T COMMENT 9401170101 940117 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

GTE NORTH INC A UNIT OF GTE CORP AN OFFERING OF UP TO 300 MILLION OF
DEBENTURES SERIES B

MARCUS CABLE CO AND MARCUS CABLE CAPITAL CORP A SHELF OFFERING OF SENIOR
DISCOUNT DEBENTURES VIA GOLDMAN SACHS & CO

MESA INC MESA OPERATING CO AND MESA CAPITAL CORP A SHELF OFFERING FOR
51 MILLION OF 12 3/4 SECURED DISCOUNT NOTES 9401170100 940117
TECHNOLOGY & ENVIRONMENT DOW CORNING TO TAKE AFTERTAX CHARGE OF 415
MILLION FOR BREASTIMPLANT SUITS  BY JAMES P MILLER STAFF
REPORTER OF THE WALL STREET JOURNAL

DOW CORNING CORP SAID IT WILL RECORD A FOURTHQUARTER PRETAX CHARGE OF 640
MILLION REPRESENTING ITS BEST CURRENT ESTIMATE OF THE COMPANY'S POTENTIAL
LIABILITY UNDER A PROPOSED 475 BILLION SETTLEMENT OF ALL BREASTIMPLANT
LITIGATION

THE 5050 JOINT VENTURE BETWEEN DOW CHEMICAL CO AND CORNING INC SAID THE
AFTERTAX EFFECT OF THE CHARGE WILL BE 415 MILLION TO BE ABSORBED EQUALLY
BY ITS TWO CORPORATE PARENTS

THE FOOD AND DRUG ADMINISTRATION HALTED COSMETIC SILICONE BREAST IMPLANTS IN
1992 AFTER A NUMBER OF LAWSUITS AND COMPLAINTS SURFACED ALLEGING HEALTH
PROBLEMS CAUSED BY SILICONE LEAKING FROM IMPLANTS

IN SEPTEMBER DOW CORNING ONCE THE WORLD'S BIGGEST MAKER OF SILICONE
BREAST IMPLANTS DISCLOSED THAT IT AND OTHER IMPLANT MAKERS WERE IN
SETTLEMENT TALKS WITH ATTORNEYS REPRESENTING SEVERAL THOUSAND WOMEN WHO HAD
FILED SUIT CLAIMING TO HAVE BEEN HARMED BY THE DEVICES UNDER THAT PLAN
MANUFACTURERS RAWMATERIAL SUPPLIERS HEALTHCARE SUPPLIERS AND INSURERS
WOULD FUND PAYMENTS TO THE CLAIMANTS OVER 30 YEARS

THE SPECIFIC SIZE OF THE CHARGE DOW CORNING WOULD HAVE TO TAKE TO COVER THE
PROPOSED SETTLEMENT HADN'T PREVIOUSLY BEEN MADE PUBLIC BUT THE FIGURE THE
COMPANY PROVIDED FRIDAY WAS GENERALLY IN LINE WITH OBSERVERS' EARLIER
ESTIMATES

THE VENTURE CALCULATED ITS TOTAL IMPLANT LIABILITY INCLUDING LEGAL
ADMINISTRATIVE AND RESEARCH COSTS AT 124 BILLION IT SAID IT EXPECTS THAT
FIGURE TO BE REDUCED BY INSURANCE PAYMENTS OF 600 MILLION

BUT DOW CORNING CAUTIONED THAT THE BIG CHARGE ISN'T NECESSARILY THE FINAL
WORD OF THE FISCAL PUNISHMENT IMPLANTS REPRESENT AS SETTLEMENT NEGOTIATIONS
CONTINUE THE COMPANY SAID ADDITIONAL FACTS AND CIRCUMSTANCES MAY DEVELOP
THAT COULD REQUIRE ADDITIONAL PROVISIONS

WE ARE ENCOURAGED BY THE PROGRESS BEING MADE IN THE SETTLEMENT
NEGOTIATIONS A DOW CORNING OFFICIAL SAID WHILE NO SETTLEMENT AGREEMENT
HAS BEEN REACHED YET WE BELIEVE THAT A RESOLUTION CAN BE FOUND

DOW CORNING TOOK PAINS TO POINT OUT THAT BASED ON ITS CURRENT EVALUATION OF
WHAT IT WILL RECEIVE FROM INSURERS AND FROM ITS OWN OPERATIONS IT EXPECTS
TO GENERATE THE FINANCIAL LIQUIDITY REQUIRED TO MEET ITS CONTINUING
OPERATIONAL NEEDS AND PARTICIPATE IN THE PROPOSED SETTLEMENT

IN THE WAKE OF THE ANNOUNCEMENT STANDARD & POOR'S CORP AFFIRMED ITS
CURRENT RATINGS ON DOW CORNING'S DEBT OF ABOUT 560 MILLION NOTING THAT THE
EXPECTED FINANCIAL IMPACT IS ALREADY RECOGNIZED IN THE CURRENT RATING BUT
IT SAID THAT THE VENTURE'S RATING OUTLOOK REMAINS NEGATIVE AS THERE IS
STILL UNCERTAINTY AS TO WHETHER THE SETTLEMENT WILL BE FINALIZED TERMS OF
THE FINAL AGREEMENT AND THE EXTENT OF DOW CORNING'S ULTIMATE INSURANCE
RECOVERIES ARE ALSO UNCERTAIN IT ALSO NOTED THAT IT'S NOT CLEAR HOW MANY
CLAIMANTS MAY OPT OUT OF THE SETTLEMENT AND PURSUE THEIR CLAIMS
SEPARATELY

WHEN THE PROPOSED SETTLEMENT WAS INITIALLY DISCLOSED SOME LAWYERS
REPRESENTING WOMEN WHO CLAIM TO HAVE SUFFERED AUTOIMMUNE ILLNESSES AND OTHER
AILMENTS FROM SILICONE IMPLANTS CONTENDED THAT THE PAYMENTS WERE INADEQUATE

IN SEPARATE RELEASES DOW CHEMICAL IN MIDLAND MICH SAID ITS SHARE OF THE
VENTURE'S CHARGE WILL REQUIRE A FOURTHQUARTER CHARGE OF 192 MILLION OR 70
CENTS A SHARE CORNING OF CORNING NY SAID ITS HALF WOULD REQUIRE A
FOURTHQUARTER CHARGE OF 203 MILLION OR 106 A SHARE

IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY DOW SHARES MOVED UP 50
CENTS TO 58875 A SHARE CORNING SHARES ROSE 25 CENTS TO 31 A SHARE