SOME EARPHONES CAN ELIMINATE ANNOYING NOISE PILOT HEADSETS THAT USE ONE NOISE TO MUTE ANOTHER ARE SLIMMING DOWN AND SIMPLIFYING FOR THE CONSUMER MARKET MAKING LIFE QUIETER FOR TRAVELERS ELECTRICLAWNMOWER USERS JOGGERS AND ANYONE WHO LIVES OR WORKS IN A NOISY PLACE AIRPLANE PILOTS AND SOME FACTORY WORKERS HAVE LONG USED HEADSETS THAT REDUCE HIGHFREQUENCY NOISE PASSIVELY WITH INSULATION AND LOWFREQUENCIES ACTIVELY BY EMITTING ANTINOISE SOUND WAVES THESE HEADSETS ARE BIG AND BULKY AND COST UP TO 1000 NOISEBUSTER THE FIRST CONSUMER HEADSET WITH ACTIVE NOISE REDUCTION COMES FROM NOISE CANCELLATION TECHNOLOGIES STAMFORD CONN IT HAS NO PASSIVE INSULATION HIGH FREQUENCIES INCLUDING SPEECH MUSIC AND CAR HORNS GET THROUGH BUT VIA BATTERY IT GENERATES ANTINOISE IN THE FATIGUEPRODUCING LOW FREQUENCIES NOISEBUSTER RETAILS FOR 149 USERS SEEM PLEASED LARRY SCHATZ A DIVORCE LAWYER SAYS NOISEBUSTER CUT THE SOUND OF A JACKHAMMER NEAR HIS MANHATTAN OFFICE TO SOMETHING VERY TOLERABLE JERRY MILL AN INVESTMENT ANALYST IN DENVER SAYS THAT WHEN HE FLIES NOISEBUSTER GETS RID OF THAT CONSTANT DRONE THAT WEARS YOU OUT ACTIVE NOISE AND VIBRATION TECHNOLOGIES PHOENIX SELLS A COMPETING HEADSET FOR 190 THE COMPANY SAYS ITS NQ100 CANCELS MORE NOISE AND HAS A LONGER BATTERY LIFE THAN NOISEBUSTER A THIRD COMPANY SENNHEISER ELECTRONICS OLD LYME CONN CLAIMS SUBSTANTIALLY MORE NOISE REDUCTION AND BATTERY LIFE FROM ITS NOISGARD HEADSET WHICH RETAILS FOR 990 TO PARAPHRASE TALLEYRAND ON WAR SCHOOLS ARE MUCH TOO SERIOUS A MATTER TO BE ENTRUSTED ONLY TO THE PRINCIPAL TEACHERS AND STUDENTS SO A GROWING NUMBER OF ARCHITECTS AND PLANNERS ARE DESIGNING SCHOOLS TO PROVIDE SPACE FOR THE PUBLIC BEFORE AFTER AND EVEN DURING THE SCHOOL DAY PENN HIGH SCHOOL IN MISHAWAKA IND HAS A PUBLIC SWIMMING POOL ONE END OF WHICH INCLUDES FEATURES FOR YOUNG CHILDREN AND THE HANDICAPPED THE BUILDER GREINER ENGINEERING IRVING TEXAS ADDED A DAYCARE CENTER FOR CHILDREN OF STUDENTS TEACHERS AND THE PUBLIC THE NEW ELEMENTARY SCHOOL IN CHELSEA MASS DESIGNED BY HMFH ARCHITECTS CAMBRIDGE IS MEANT TO SERVE THE PUBLIC 24 HOURS A DAY SEVEN DAYS A WEEK 12 MONTHS A YEAR SAYS STEPHEN FRIEDLAENDER ONE OF THE ARCHITECTS ON THE PROJECT IT HOUSES HEALTH CLINICS FOR THE NEIGHBORHOOD AND A POLICE SUBSTATION IN NEW YORK A NEW ELEMENTARY SCHOOL IN WASHINGTON HEIGHTS WAS PLANNED JOINTLY BY THE SCHOOL BOARD AND THE CHILDREN'S AID SOCIETY THE SCHOOL HAS MEDICAL AND DENTAL CLINICS FOR STUDENTS AND THEIR FAMILIES AND OUTDOOR LIGHTING SO THE PLAYGROUND CAN BE USED UNTIL LATE AT NIGHT NEW YORK ARCHITECTS GRUZEN SAMPTON ARRANGED THE GYM AUDITORIUM AND LUNCH ROOM SO THEY CAN BE USED DURING NONSCHOOL HOURS WITHOUT OPENING THE WHOLE SCHOOL ONCE IN A WHILE A SIMPLE PRODUCT APPEARS IN THIS WORLD OF HIGHTECH COMPLEXITY DRUMWIC IS AN EIGHTINCH PIECE OF STAINLESS STEEL BENT INTO A HOOK AND LINED WITH FELT WHEN DRAPED OVER THE RIM OF A STEEL DRUM OR BARREL THE DEVICE USES CAPILLARY ATTRACTION AND GRAVITY TO DRAIN WATER NEARLY ONE QUART AN HOUR OFF THE LID WHEN BARRELS ARE RAINED ON THEIR CONTENTS CAN BECOME CONTAMINATED WITH WATER SUCKED IN BY PRESSURE CHANGES OR LEAKED IN THROUGH RUST SOME 75 MILLION 55GALLON STEEL DRUMS ARE IN USE IN THE US MOST HOLD CHEMICALS OR PETROLEUM PRODUCTS SOME DRUM OWNERS CHOOSE TO STORE THEM INDOORS AT A HIGH PRICE DRUMWIC WHICH COSTS 275 A PIECE IS MADE BY LEE TECHNOLOGY HUNTINGTON WVA LESAC CORP MICHIGAN CITY IND SELLS ITS OWN DRUM WICK A PLAIN PIECE OF FELT WITHOUT METAL BACKING THAT'S GLUED TO THE TOP AND SIDE OF A BARREL THIS DRUM WICK COSTS ONLY 15 CENTS BUT IT DOESN'T LAST AS LONG AS DRUMWIC AND IT ISN'T REUSEABLE BY FAR THE MOST POPULAR BARREL PROTECTION IS THE PLASTIC OR RUBBER LID WHICH SNAPS OVER THE STEEL DRUM LID LIKE A TUPPERWARE TOP BUT PLASTIC LIDS WHICH COST ABOUT THE SAME AS DRUMWICS ARE UNRELIABLE THE SUN BREAKS THEM DOWN AND THE WINDS SHRED THEM SAYS ED KEIL ENVIRONMENTAL COORDINATOR FOR EG&G INC A ROCKY FLATS COLO COMPANY THAT CLEANS UP POLLUTED PLACES MR KEIL IS USING 1200 DRUMWICS AND HAS ORDERED 400 MORE DRUM PAL A RUBBER LID MADE BY UNIROYAL STANDS UP BETTER THAN PLASTIC BUT COSTS 750 EACH AND PREVENTS EASY VIEWING OF THE BARREL LABEL IN THE BRAWNY WORLD OF STEEL DRUMS MACHO IMAGE COUNTS FOR A LOT RON MARTINKUS IS PRODUCT MANAGER AT BASCO AN INDUSTRIAL CATALOG HOUSE BASED IN UNIVERSITY PARK ILL WHILE BASCO WILL SOON BEGIN SELLING DRUMWIC MR MARTINKUS REMAINS UNCONVINCED A LITTLE PIECE OF FELT DOESN'T APPEAR TO HAVE THE MEAT BEHIND IT HE SAYS 9401170098 940117 REVIEW & OUTLOOK EDITORIAL ASIDES PARTING THOUGHTS ALMOST NOBODY PAYS ATTENTION TO THE EDITORIAL WRITERS OF THE WALL STREET JOURNAL THIS WAS THE OPINION OF SENATOR DON RIEGLE THE BANKING CHAIRMAN RESPONDING ON CNN TO OUR SUGGESTION LAST WEEK THAT HIS KEATING FIVE PAST MADE IT DOUBTFUL HE COULD HOLD USEFUL HEARINGS INTO WHITEWATER OR MADISON GUARANTY MR RIEGLE RECENTLY ANNOUNCED THAT HE WOULD NOT SEEK ANOTHER TERM IN THE SENATE 9401170097 940117 INTERNATIONAL US MAY ALLOW JAPAN TO LIFT CURBS ON ITS CAR EXPORTS BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A NEWLY CONFIDENT US IS SHIFTING GEARS IN ITS STRATEGY FOR CUTTING ITS AUTOTRADE DEFICIT WITH JAPAN INSTEAD OF CURBING IMPORTS FROM A MIGHTY JAPANESE INDUSTRY AMERICA IS CHAMPIONING THE EXPORTS OF A RESURGENT DETROIT WASHINGTON'S NEW APPROACH TO HANDLING THE MOST SERIOUS ECONOMIC IRRITANT BETWEEN THE TWO NATIONS WAS ON FULL DISPLAY HERE LAST WEEK VISITING CLINTON ADMINISTRATION OFFICIALS SAID THEY WOULD CONSIDER LETTING JAPAN END ITS DECADEOLD VOLUNTARY QUOTAS ON CAR EXPORTS TO THE US INSTEAD THE US WOULD FOCUS ON DEMANDING BENCHMARKS OF IMPROVED ACCESS TO JAPAN'S MARKET I HAVE A FEELING IT WOULD NOT BE A BIG DEAL IF JAPAN SCUTTLED THE QUOTAS US COMMERCE UNDERSECRETARY JEFFREY E GARTEN SAID IN AN INTERVIEW OVER THE WEEKEND THE PREOCCUPATION OF THE ADMINISTRATION RIGHT NOW IS HOW TO SELL MORE PARTS AND AUTOS HOW TO GENERATE MORE JOBS IN THE AUTO SECTOR AS A RESULT OF BETTER ACCESS TO THE JAPANESE MARKET JAPANESE OFFICIALS SAID LAST MONTH THEY PLAN TO DROP THE EXPORT QUOTAS THOUGH IT ISN'T CLEAR WHEN THEY WILL DO SO IN A SEPARATE TRADE MATTER US OFFICIALS SAID THEY ARE OPTIMISTIC ABOUT SETTLING A LONGSTANDING DISPUTE OVER ACCESS TO JAPAN'S CONSTRUCTION MARKET BY THE JAN 20 DEADLINE THE JAPANESE CABINET IS EXPECTED TO APPROVE A SWEEPING NEW PLAN TO OPEN UP THE BIDDING PROCESS FOR PUBLIC WORKS AS SOON AS TUESDAY THERE ARE STILL SOME THINGS THAT NEED TO BE WORKED OUT BUT FROM WHAT I UNDERSTAND ABOUT THE PLAN IT'S GOING TO BE FAIRLY GOOD A SENIOR US GOVERNMENT OFFICIAL SAID SUNDAY SCUTTLING THE CAREXPORT LIMITS WOULDN'T BE MUCH OF A CONCESSION ON WASHINGTON'S PART JAPANESE AUTO MAKERS LAST FILLED THEIR QUOTA IN 1986 WHAT'S MORE THE US STILL PLAYS AGGRESSIVE DEFENSE IN TRADE RETAINING THE RIGHT TO PROTECT INDUSTRIES WITH ANTIDUMPING TARIFFS AND MANIPULATING CURRENCY RATES TO MAKE JAPANESE GOODS MORE EXPENSIVE IN THE US STILL THE MOOD HAS CLEARLY CHANGED JUST TWO YEARS AGO PRESIDENT BUSH AND DETROIT EXECUTIVES CAME TO JAPAN IN WHAT WAS WIDELY PORTRAYED AS A HUMILIATING MISSION TO BEG FOR MERCY FROM UNSTOPPABLE COMPETITORS THE TONE WAS RADICALLY DIFFERENT LAST WEEK WHEN MR GARTEN AND UNDERSECRETARY OF STATE JOAN SPERO CAME TO NEGOTIATE GREATER US ACCESS TO JAPAN'S MARKETS FOR AUTOS MEDICAL AND TELECOMMUNICATIONS EQUIPMENT AND INSURANCE IN ONE SPEECH MS SPERO CALLED THE US THE WORLD'S GREATEST EXPORT MACHINE AND COMPARED AMERICA'S ROBUST GROWTH WITH THE SLUGGISH JAPANESE AND EUROPEAN ECONOMIES SHE ADVISED JAPAN TO FOLLOW THE US LEAD IN DEREGULATION WILL YOU SHE ASKED JAPAN AND EUROPE BE ABLE TO COMPETE IN THE FUTURE WITH THE NEW AMERICAN ECONOMY' WE ARE CREATING IF YOU DO NOT MAKE STRUCTURAL CHANGES WASHINGTON'S CONFIDENCE DOESN'T HOWEVER MEAN THAT TRADE TENSIONS HAVE EVAPORATED THE US AND JAPAN ARE TRYING TO HAMMER OUT A BROAD NEW FRAMEWORK FOR CUTTING THE BILATERAL TRADE IMBALANCE THE TWO SIDES ARE COMMITTED TO REACHING AN AGREEMENT BY FEB 11 WHEN PRIME MINISTER MORIHIRO HOSOKAWA IS SCHEDULED TO MEET WITH PRESIDENT CLINTON IN WASHINGTON BUT NEGOTIATORS FROM BOTH SIDES SAY THEY ARE STILL FAR APART ON BASIC PHILOSOPHICAL ISSUES THE US WANTS NUMERICAL BENCHMARKS TO PROMOTE US EXPORTS TO JAPAN THE JAPANESE OBJECT TO THAT AS MANAGED TRADE DESPITE THE IMPASSE JAPAN IS MAKING SOME CONCILIATORY GESTURES ON FRIDAY A NISSAN MOTOR CO SALES AFFILIATE SAID IT INTENDS TO BEGIN MARKETING FORD MOTOR CO VEHICLES THIS SPRING ON SATURDAY THE LOCAL PRESS REPORTED THAT TOYOTA DEALERS ALSO ARE THINKING ABOUT SELLING FORD CARS IN JAPAN GREATER ACCESS TO JAPANESE DEALERSHIPS FOR BIG THREE CARS IS A KEY US DEMAND IN RECENT YEARS THE BIG THREE HAVE BEEN SEEN IN JAPAN AS SYMBOLS OF US ECONOMIC DECLINE LATELY HOWEVER DETROIT'S IMAGE HAS IMPROVED THE CLEAREST EVIDENCE OF A NEW JAPANESE RESPECT FOR US INDUSTRY IS A PUBLIC FASCINATION WITH CHRYSLER CORP'S NEON A PUNCHY BARGAINPRICED COMPACT CAR THAT JUST WENT ON SALE IN THE US THE JAPANESE PRESS HAS DUBBED THE NEON THE JAPANCAR KILLER NEON'S CELEBRITY IS PART OF A WIDER POPULAR REASSESSMENT OF US POWER THE COVER OF THIS WEEK'S NIKKEI BUSINESS MAGAZINE DEPICTS A LEANANDMEAN UNCLE SAM TOWERING OVER ASIA THE DRAWING ILLUSTRATES A STORY TITLED RISING SAM ABOUT US POLICY OF CONTAINING JAPAN AND OPENING MARKETS IN ASIA LAST YEAR FORD CHRYSLER AND GENERAL MOTORS CORP HAD A COMBINED 29 SHARE OF THE JAPANESE VEHICLE MARKET JAPANESE AUTO MAKERS' SHARE OF THE US MARKET IS ABOUT 10 TIMES THAT LARGE TRADE IN AUTOS AND AUTO PARTS ACCOUNTS FOR ROUGHLY TWOTHIRDS OF THE US 50 BILLION TRADE DEFICIT WITH JAPAN JACOB M SCHLESINGER CONTRIBUTED TO THIS ARTICLE 9401170096 940117 COMMODITIES MOST DEALERS DOUBT GOLD WILL TOP 500 AN OUNCE BUT SOME SAY EXCESS LIQUIDITY WILL PUSH PRICE UP BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON COULD GOLD RACE PAST 500 AN OUNCE THIS YEAR MOST BULLION DEALERS AND ANALYSTS DOUBT IT AND ARE EXPECTING A 1994 TRADING RANGE OF 360 TO 450 BUT A FEW ANALYSTS CONTEND THAT THE PRECIOUS METALS MARKET IS MISJUDGING THE POTENTIAL FIREPOWER OF INVESTORS GOLD FOR FEBRUARY DELIVERY SETTLED FRIDAY AT NEW YORK'S COMMODITY EXCHANGE AT 39010 AN OUNCE DOWN 50 CENTS EXCESS LIQUIDITY IN WORLD FINANCIAL MARKETS WILL CONTINUE TO DRIVE GOLD HIGHER PREDICTS MICHAEL HOWELL HEAD OF THE GLOBAL STRATEGY UNIT AT BARING SECURITIES MR HOWELL WHO PREVIOUSLY STUDIED LIQUIDITY TRENDS FOR SALOMON BROTHERS ISN'T A SPECIALIST ON GOLD INSTEAD HE ANALYZES GLOBAL FINANCIAL FLOWS ALMOST ALL THE MAJOR CENTRAL BANKS NOW HAVE LOOSE MONETARY POLICIES MR HOWELL SAYS SWIRLING MONEY FIRST INFLATES THE PRICES OF STOCKS AND BONDS THEN PRICES OF GOODS FOLLOW SUIT HE SAYS THE GOLD PRICE TREND IS DETERMINED BY WORLD INFLATION BUT THE EXTENT OF THE CYCLE IS DETERMINED BY FLOWS OF FUNDS MR HOWELL SAYS AND EXCESS LIQUIDITY IS ALREADY DRIVING GOLD HIGHER HE SAYS IN PREVIOUS GOLD BULLMARKET CYCLES BUOYANT LIQUIDITY PUSHED GOLD WAY ABOVE ITS REAL WORTH MR HOWELL SAYS OTHER ANALYSTS CONTEND THAT SPECULATIVE FLOWS INTO GOLD AND OTHER COMMODITIES CAN AT BEST ONLY DRIVE PRICES UP TEMPORARILY HIGH PRICES THEN CRIMP PURCHASES OF MANUFACTURERS THAT USE THE COMMODITIES AS RAW MATERIALS MEANWHILE PRODUCERS AND HOLDERS OF SURPLUS INVENTORIES RAPIDLY TAKE ADVANTAGE OF HIGHER PRICES BY SELLING ANALYSTS SAY AND ALL THIS EXERTS DOWNWARD PRESSURE ON PRICES A MASSIVE GOLD PRICE SURGE SIMILAR TO THE EARLY '80S WOULD DAMAGE THE DEMAND FOR PHYSICAL GOLD FROM JEWELERS AND HOARDERS SAYS TED ARNOLD METALS ANALYST AT MERRILL LYNCH AND THESE BUYERS HE SAYS ACCOUNT FOR THE BULK OF GOLD PURCHASES FOLLOWING THE GOLD PRICE RISE OF RECENT MONTHS PHYSICAL DEMAND IS ALREADY DROPPING LIKE A STONE MR ARNOLD SAYS DEMAND IS SLUMPING IN CHINA JAPAN AND THE REST OF THE FAR EAST HE SAYS HIGHER PRICES AND RECESSION ARE ALSO CURBING ORDERS OF THE HUGE ITALIAN JEWELRY INDUSTRY A SWISS BULLION MANAGER SAYS MOREOVER CURRENCY WEAKNESS IS MAKING GOLD EVEN MORE EXPENSIVE FOR EUROPEAN CONSUMERS WHO ARE STILL CAUGHT IN RECESSION HE SAYS ADDS FRITZ PLASS DIRECTOR IN CHARGE OF DEUTSCHE BANK AG'S PRECIOUS METALS OPERATIONS PRODUCER INVENTORIES ARE HIGH AND IF THE PRICE SURGED ABOVE 400 THEY WOULD SELL MORE GOLD CENTRAL BANKS ARE ALSO LIKELY TO BE SELLERS AT HIGHER PRICES HE SAYS TO BE SURE A STUDY BY GOLD FIELDS MINERALS SERVICES A CONSULTANCY OWNED BY US SOUTH AFRICAN AND AUSTRALIAN MINES ESTIMATES THAT NET GOLD SALES OF CENTRAL BANKS TOTALED 440 METRIC TONS LAST YEAR A METRIC TON IS 220462 POUNDS THIS IS EQUIVALENT TO 13 OF TOTAL 1993 SUPPLIES SAYS THE REPORT SALES WERE BELOW AN EXCEPTIONALLY HIGH 582 TONS IN 1992 BUT THEY ILLUSTRATE THAT CENTRAL BANKS REMAIN ACTIVE IN THE MARKET SAYS THE CONSULTANCY NEVERTHELESS THE ABILITY OF GOLD CONSUMERS AND INVESTORS TO ABSORB MORE THAN 1000 TONS OF CENTRAL BANK GOLD IN THE PAST TWO YEARS SUGGESTS THAT THE MARKET IS ROBUST SAYS STEWART MURRAY CHIEF EXECUTIVE OF GOLD FIELDS HE SAYS THAT GOLD'S INFLATIONADJUSTED VALUE SINCE 1935 SHOULD BE BASED ON US PRICE FIGURES ON THIS BASIS THE REAL WORTH OF GOLD IS 377 BELOW PRESENT PRICES OF 389 ALL THE SAME MR MURRAY AGREES THAT THE WEIGHT OF FUNDS FROM FINANCIAL MARKETS COULD EASILY PUSH GOLD UP THE PRICE CAN MOVE RAPIDLY BECAUSE THE MARKET IS TINY WHEN COMPARED TO BOND AND EQUITY MARKETS MR MURRAY SAYS INVESTMENT DEMAND IN 1993 WAS THE HIGHEST SINCE THE PERSIAN GULF WAR MR MURRAY SAYS YET GOLD PRODUCTS SUCH AS WARRANTS MUST BE DEVELOPED TO ATTRACT PENSION AND MUTUAL FUNDS HE SAYS OTHERWISE LAST YEAR'S INVESTMENT BUYING MIGHT TURN OUT TO BE JUST A PASSING FASHION FOR SHORTTERM SPECULATIVE CASH HE SAYS UNTIL NOW THE LARGER PENSION AND MUTUAL FUNDS PREFERRED TO LIMIT THEIR EXPOSURE TO GOLD STOCKS MR MURRAY SAYS YET GOLD STOCKS SOARED BY A FAR GREATER EXTENT THAN THE METAL LAST YEAR SO ON A RELATIVE BASIS GOLD METAL REPRESENTS BETTER VALUE HE ASSERTS 9401170095 940117 TAKE A BITE DO SOME WORK TAKE A BITE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL FOR BETTER OR WORSE THE WORKPLACE HAS BECOME THE EATPLACE THAT'S MADE LIFE INTERESTING FOR THE COLLEAGUES OF DAVID MORRIS MARKETING DIRECTOR OF A REALESTATE DEVELOPER IN NEW JERSEY MR MORRIS LIKES COLD SPAGHETTI TOPPED WITH SLICED RAW ONION OR A TUNA SANDWICH DOUSED WITH HOT SAUCE FOR BREAKFAST THAT WOULD BE FINE IF HE WERE CHOMPING IN PRIVACY BUT MR MORRIS EATS THE STUFF IN THE OPEN THE SMELL GROSSES ME OUT IN THE MORNING WHEN HE EATS TUNA FISH OR CHILI WITH HOT SAUCE COMPLAINS JULIE HOFFMAN A BOOKKEEPER WHO ASKED THAT HER DESK BE MOVED OUT OF NOSESHOT MANY EMPLOYEES ON TIGHT BUDGETS AND WORKING LONGER HOURS AS A RESULT OF CORPORATE CUTBACKS ARE HAVING BREAKFAST LUNCH AND DINNER AT THEIR DESKS NATIONAL EATING TRENDS A SURVEY CONDUCTED BY NPD GROUP A CHICAGO MARKET RESEARCH CONCERN SAYS THE NUMBER OF MEALS TAKEN TO OFFICES FROM RESTAURANTS HAS RISEN 29 IN THE PAST DECADE AND IT'S NOT JUST SANDWICHES IN LOS ANGELES A DELIVERY SERVICE CALLED WHY COOK RECENTLY TRANSPORTED 480 OF SUSHI TO 15 INVESTMENT BANKERS WORKING LATE ONE NIGHT MANAGERS ARE OF TWO MINDS ABOUT THE PHENOMENON ON THE ONE HAND EATING IN IS SUPPOSEDLY MORE EFFICIENT BECAUSE EMPLOYEES CAN WORK AS THEY DINE BUT CLIENTS WHO DROP BY ARE GREETED BETWEEN BITES MEMOS ARE CIRCULATED WITH PHOTOCOPIED MUSTARD SMUDGES LEFTOVERS ROT IN THE REFRIGERATOR TRASH CANS LEAK SAUCES THE OTHER DAY WE HAD THAI FOOD AND THE TRASH WASN'T REMOVED THE NEXT DAY IT WAS HARD TO WALK IN THE OFFICE IT SMELLED SO BAD SAYS KRISTIN HAHN AN INDEPENDENT PRODUCER IN LOS ANGELES SOME COMPANIES HAVE GONE SO FAR AS TO FORBID EMPLOYEES TO EAT IN THE OFFICE WHITE & CASE A NEW YORK LAW FIRM ESTABLISHED A NODESKEATING POLICY FOR A VARIETY OF DIFFERENT REASONS BOTH OFFICE APPEARANCE AND INSECTS AND RODENT PROBLEMS WE'D PREFER NOT TO HAVE THEM EAT AT THEIR DESKS BUT WE HAVE A CAFETERIA SAYS TIM GOODELL ADMINISTRATIVE PARTNER JANITORS WOULDN'T MIND A UNIVERSAL NOOFFICE EATING EDICT INFESTATION BY MICE AND BUGS IS BAD ENOUGH BUT ALMOST AS TROUBLESOME ARE THE DAILY MESSES LIKE THE POPCORN AND MUFFIN CRUMBS GROUND INTO THE CARPET HOLIDAYS ARE THE WORST WITH ENDLESS COOKIE TRAYS AND CATERED OFFICE PARTIES PEOPLE EAT A PAPER PLATE OF RIGATONI OR CHICKEN WINGS AT THEIR DESK THROW IT IN THE GARBAGE CAN AND HIT THE RIM IT BOUNCES ON THE FLOOR AND THEY LEAVE IT LAMENTS RICHARD SEIGFREID OF ARCADE MAINTENANCE INC IN PITTSBURGH THEN THERE ARE LEFTOVERS OFTEN STASHED IN THE OFFICE REFRIGERATOR FOR A FUTURE LUNCH BUT INVARIABLY THEY ARE FORGOTTEN FOR DAYS EVEN WEEKS RESULTING IN A GREEN MOLDY SLIMY SMELLY MESS SAYS MR SEIGFREID EMPLOYEES CONCEDE THAT SPENDING HOURS AGONIZING OVER TAKEOUT DECISIONS CAN ACTUALLY CUT INTO THEIR PRODUCTIVITY DAVID BENNETT A SENIOR ACCOUNTANT WITH A NEW JERSEY TOY MANUFACTURER SAYS HE AND HIS COWORKERS START DEBATING RESTAURANT CHOICES AROUND 11 AM PLACE THEIR ORDERS AFTER NOON AND WAIT UNTIL 230 FOR THE FOOD BY THAT TIME WE'RE DYING OF HUNGER HE SAYS BUT PROPONENTS SAY THAT WHEN DONE PROPERLY EATING IN THE OFFICE ADDS TO CAMARADERIE AND MORALE SUSAN ZIGOURAS A NUTRITIONIST AND PSYCHOTHERAPIST IN NEW YORK SAYS THAT IN MANY HOUSEHOLDS MEALTIME IS STILL ASSOCIATED WITH FAMILY AND TOGETHERNESS THUS SHARING TAKEOUT WITH COLLEAGUES AND BOSSES CAN FEEL LIKE A WAY OF BEING NURTURED SHE SAYS THAT'S ONE REASON WHY ANN MARIE SABATH OF AT EASE INC A CINCINNATI BUSINESS ETIQUETTE TRAINING COMPANY SAYS IT'S VERY IMPORTANT WHEN GOING OUT FOR FOOD TO MAKE SURE YOU ASK COWORKERS IF YOU CAN BRING SOMETHING BACK MS SABATH HAS MORE ATDESK EATING TIPS IF YOU HAVE AN OFFICE CLOSE THE DOOR IF YOU HAVE A CUBICLE TURN YOUR BACK TO THE OPENING AND STOP EATING IF SOMEONE COMES BY AND NEVER CHEW ON THE PHONE NOT EVERYONE LIVES BY THOSE RULES OF COURSE ESPECIALLY THOSE WHO LIVE ON THE PHONE OR ON THE AIR GARY MOORE WHO DOES THE MORNING RUSHHOUR SHOW FOR A LOS ANGELES ROCK STATION SAYS WHEN HE WANTS TO CHOW DOWN HE PLAYS EXTRALONG SONGS LIKE LED ZEPPELIN'S STAIRWAY TO HEAVEN I KNOW THE SONGS WELL ENOUGH THAT I FINISH UP BUT A COUPLE TIMES I'VE HAD TO SWALLOW PRETTY FAST SAYS MR MOORE WHO USUALLY DRINKS COKE AND EATS FRUIT DURING HIS FOURHOUR DAILY STINT LINDA SWARTZ A TAX ATTORNEY WITH MILBANK TWEED HADLEY & MCCLOY NEW YORK HAS HER OWN TECHNIQUE FOR HIDING THE FACT THAT SHE'S EATING ON THE PHONE YOU LIFT THE MOUTHPIECE OF YOUR PHONE YOU PIVOT IT ON YOUR EAR SO THE MOUTHPIECE IS NEAR THE HAIRLINE WHILE YOU CHEW AND YOU PIVOT IT BACK DOWN TO SPEAK SHE SAYS IF YOU'RE ON A SPEAKERPHONE HIT THE MUTE BUTTON WHILE YOU CHEW ACTUALLY SHE CONFESSES SHE LEARNED HER NOSHING TECHNIQUES FROM A COLLEAGUE I WATCHED A TAX PARTNER DO THAT WHEN I WAS A JUNIOR AND THOUGHT THAT WAS A GOOD IDEA SHE SAYS ERIC HASSERJIAN A MARKETING DIRECTOR OF A SANTA MONICA CALIF OFFICE DEVELOPMENT CALLED THE WATER GARDEN TAKES THIS APPROACH IF I'M ON HOLD I'LL TAKE A SMALL BITE SO IF THEY COME BACK ON I CAN GET AWAY WITH HAVING FOOD IN MY MOUTH THE 29YEAROLD NIBBLES COOKIES CHEESE AND CRACKERS ALL DAY ON TOP OF MY THREE MEALS POSITIONING HIS TRASH CAN BETWEEN HIS KNEES TO CATCH CRUMBS PREVENTING MESSY SOUPS AND SALAD DRESSINGS FROM SPOILING IMPORTANT DOCUMENTS TAKES EXTRA THOUGHT MR HASSERJIAN SPREADS A NEWSPAPER ON MY DESK COVERING THE PAPERWORK THEN I USE THAT AS MY PLACEMAT IT ALSO ENTERTAINS ME BECAUSE I CAN READ IT WHILE EATING FOR SOME A CERTAIN LEVEL OF SLOPPINESS IS UNAVOIDABLE I HAVE A FEW DOCUMENTS SMEARED WITH FOOD HERE ADMITS PRODUCER MS HAHN ADDING QUICKLY BUT THEY AREN'T GOING OUT OF THE OFFICE COMPUTER KEYBOARDS ARE ALSO NOT EATERFRIENDLY CRUMBS COFFEE AND SOFT DRINKS CAN MAKE KEYS STICK AND GUM UP COMMANDS WE COULD OPEN UP A KEYBOARD AND LIVE FOR A WEEK OFF WHAT WE FIND IN THAT THING SAYS STEVE GRAY MANAGER OF THE ELECTRONICS DEPARTMENT AT THE OMAHA WORLDHERALD MR GRAY SAYS EMPLOYEES RARELY CONFESS TO SPILLING BREAKFAST ON THEIR KEYBOARDS THEY'LL BRING IT IN TO BE FIXED AND WE'LL ASK THEM DID YOU SPILL SOMETHING INTO IT' OH NO' THEY'LL SAY NOT THAT I KNOW OF' WE'LL OPEN IT UP AND YOU COULD PLANT POTATOES IN SOME OF THEM A BIGGER PROBLEM MAY BE WHAT'S CREEPING INTO THE OFFICE THE PLASTIC BAGS IN THE TRASH CANS LEAK AND FOOD IS LEFT ON THE BOTTOM SAYS DAVE DUFFY PRESIDENT OF PITTSBURGH'S CENTRAL MAINTENANCE & SERVICE CO YOU GET AN ODOR AND FLIES COME AND EVENTUALLY THE JANITOR HAS TO CLEAN OUT THE CONTAINER SOMETIMES YOU HAVE TO TREAT THE SPACE WITH AN EXTERMINATOR BUT MR MORRIS OF THE SPAGHETTI AND ONION BREAKFASTS SAYS HE ISN'T ABOUT TO CHANGE HIS EATING HABITS EVEN THOUGH HE RECENTLY HAD SUCH SEVERE HEARTBURN FROM A PUNGENT SPAGHETTI BREAKFAST THAT HE FEARED HE WAS HAVING A HEART ATTACK AND DASHED TO THE HOSPITAL IT WAS JUST INDIGESTION MR MORRIS SAYS THE DOCTOR ADVISED ME AGAINST EATING SPAGHETTI IN THE MORNING BUT I KEEP EATING IT FOR BREAKFAST IN MY OFFICE I'M HOPELESS 9401170094 940117 GERMAN FIRM'S BAILOUT PACKAGE GETS APPROVAL METALLGESELLSCHAFT CREDITORS AGREE TO PLAN TO AVOID BANKRUPTCYLAW FILING BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT METALLGESELLSCHAFT AG'S 120 BANK CREDITORS PULLED THE BIG GERMAN COMPANY BACK FROM AN IMMINENT BANKRUPTCYLAW FILING BY AGREEING TO A RESCUE PACKAGE TOTALING ABOUT 19 BILLION THE 34 BILLION MARK ACCORD REACHED ON SATURDAY INCLUDES A BIGGER CASH CONTRIBUTION TO THE PLAN FROM DEUTSCHE BANK AG AND DRESDNER BANK AG IN ORDER TO OVERCOME OPPOSITION FROM FRENCH BANKS METALLGESELLSCHAFT SAID THAT A FEW FINAL APPROVALS WERE STILL FORTHCOMING INCLUDING FROM SOME US CREDITORS BUT IT DECLARED THAT AN AGREEMENT HAD BEEN REACHED WITH THE SUPPORT OF THE BANKS METALLGESELLSCHAFT HAS A FINANCIAL FOOTING WHICH OPENS UP NEW PERSPECTIVES FOR US SAID KAJO NEUKIRCHEN THE NEW CHAIRMAN OF THE METALS ENGINEERING AND TRADING COMPANY HE SAID THE ACCORD CLEARS THE WAY FOR A SWEEPING RESTRUCTURING OF METALLGESELLSCHAFT WHICH IS GERMANY'S 14THLARGEST INDUSTRIAL GROUP WITH 58000 EMPLOYEES WORLDWIDE BANKERS SAID SUPPORT FOR THE PLAN WAS IN PART A VOTE OF CONFIDENCE IN MR NEUKIRCHEN A CORPORATE TURNAROUND SPECIALIST WHO WAS APPOINTED LAST MONTH TO SUCCEED THE COMPANY'S OUSTED CHAIRMAN HEINZ SCHIMMELBUSCH THE REORGANIZATION IS TO INCLUDE THE SALE OF METALLGESELLSCHAFT'S 49 INTEREST IN KOLBENSCHMIDT AG AN AUTOPARTS SUPPLIER AS WELL AS A DUTCH TRADING COMPANY AND SOME OF ITS INTERNATIONAL MINING ACTIVITIES INCLUDING TORONTO'S METALL MINING CORP IN THE FISCAL YEAR ENDED LAST SEPT 30 THE GERMAN COMPANY INCURRED 18 BILLION MARKS IN LOSSES FROM OPERATIONS AND A FURTHER 15 BILLION MARKS IN LOSSES FROM ITS EXPOSURE IN THE OIL MARKETS SALES TOTALED ABOUT 26 BILLION MARKS THE OILRELATED LOSSES CAME FROM METALLGESELLSCHAFT'S INVOLVEMENT IN ENERGY DERIVATIVES FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM THE PRICE OF CRUDE OIL AND OTHER ENERGY PRODUCTS THE LOSSES APPARENTLY STEMMED FROM AN ILLFATED ATTEMPT BY MG CORP METALLGESELLSCHAFT'S US TRADING UNIT TO HEDGE ITS BUSINESS RISKS AS A WHOLESALER OF OIL PRODUCTS THE BAILOUT PLAN FOR MG'S PARENT COMPANY IS EXPECTED TO ALLEVIATE CONCERNS ON THE ENERGYFUTURES MARKET THAT MG MIGHT HAVE TO LIQUIDATE LARGE FUTURES POSITIONS ON THE NEW YORK MERCANTILE EXCHANGE AS THE BANKS NEGOTIATED THE RESCUE PLAN A US AFFILIATE OF METALLGESELLSCHAFT CASTLE ENERGY CORP WARNED FRIDAY THAT THE GERMAN COMPANY'S FINANCIAL DIFFICULTIES COULD HAVE A MATERIAL ADVERSE EFFECT ON CASTLE THE RADNOR PA ENERGY COMPANY RECEIVES FINANCING AND CREDIT SUPPORT FROM METALLGESELLSCHAFT SATURDAY'S REFINANCING AGREEMENT FORESEES A NEW SHARE OFFERING THAT WOULD RAISE 14 BILLION MARKS THE OFFERING PLAN ALREADY HAS BEEN TENTATIVELY ACCEPTED BY METALLGESELLSCHAFT SHAREHOLDERS CONTROLLING 62 OF THE COMPANY'S STOCK THOSE SHAREHOLDERS INCLUDE DEUTSCHE BANK DRESDNER BANK THE AUTO MAKER DAIMLERBENZ AG THE INSURANCE COMPANY ALLIANZ AG AND THE GOVERNMENT OF KUWAIT UNTIL SATURDAY THE STICKING POINT IN THE BAILOUT HAD BEEN GETTING BANKS TO APPROVE THE CREDITRESTRUCTURING PART OF THE PACKAGE UNDER THE COMPANY'S PROPOSAL BANKS WERE ASKED TO CONVERT 13 BILLION MARKS IN METALLGESELLSCHAFT BANK DEBT INTO CONVERTIBLE PROFITSHARING CERTIFICATES THEY ALSO WILL EXTEND A NEW 700 MILLION MARK CREDIT LINE THE WHOLE CONCEPT AS IT WAS PRESENTED IS INTACT IT'S JUST THAT THE DISTRIBUTION HAS CHANGED A LITTLE BIT SAID A DEUTSCHE BANK OFFICIAL WHO ATTENDED THE SATURDAY MEETING TO MAKE IT WORK DEUTSCHE BANK AND DRESDNER BANK HAD TO REACH DEEPER INTO THEIR POCKETS AFTER A GROUP OF GERMAN AND FOREIGN BANKS LAST WEEK THREATENED TO REJECT THE PLAN UNLESS THE TWO BIG FRANKFURT BANKS PICKED UP A BIGGER SHARE OF THE BILL AFTER PROVIDING METALLGESELLSCHAFT WITH A 15 BILLION MARK STANDBY CREDIT IN DECEMBER DEUTSCHE BANK AND DRESDNER BANK PREVIOUSLY HAD HELD THAT IT WAS UP TO THE OTHER BANKS TO PUT UP THE 700 MILLION MARKS FOR THE NEW CREDIT LINE BUT MANY OF THEM INCLUDING FRENCH CREDITORS REFUSED TO LET DEUTSCHE BANK AND DRESDNER BANK OFF THE HOOK SATURDAY DEUTSCHE BANK AND DRESDNER BANK BACKED DOWN AND AGREED TO PROVIDE NEARLY ONE HALF OF THE 700 MILLION MARK TOTAL ACCORDING TO A PARTICIPANT AMONG OTHER CONCESSIONS DEUTSCHE BANK AND DRESDNER BANK ALSO HAD TO STEP IN AND FILL GAPS IN THE PROPOSED DEBTFOREQUITY SWAP LEFT BY SOME OF THE FOREIGN BANKS WHICH DISAGREED WITH THE ARRANGEMENT IN ADDITION THE NEW RIGHTS ISSUE IS TO BE GUARANTEED BY A GROUP OF MAJOR BANK CREDITORS IN THE END EVEN THOSE WHO INITIALLY DIDN'T WANT TO PLAY ALONG REALIZED WHAT THE MAIN POINT WAS THAT WE WERE TALKING ABOUT METALLGESELLSCHAFT WHICH WAS TOO GOOD A COMPANY TO GO UNDER MAYBE IT WILL TAKE TWO YEARS OR MORE BUT IT CAN MAKE MONEY AGAIN SAID A DEUTSCHE BANK OFFICIAL 9401170092 940117 GM BOOSTS SPENDING IN LATIN AMERICA AIMING TO UNSEAT MARKET LEADER VW BY ROBERT L SIMISON AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT AFTER POSTING RECORD SALES AND PROFITS IN LATIN AMERICA FOR 1993 GENERAL MOTORS CORP IS DOUBLING CAPITAL SPENDING THERE IN A BID TO SEIZE MARKET LEADERSHIP FROM VOLKSWAGEN AG WE HAD AN ELEPHANT OF A YEAR SAID RICHARD C NEROD GM VICE PRESIDENT FOR LATIN AMERICA WITHOUT DISCLOSING FIGURES MR NEROD SAID IN AN INTERVIEW THAT GM'S NET INCOME IN LATIN AMERICA FOR 1993 SUBSTANTIALLY SURPASSED 1992'S RECORD OF 2095 MILLION THE FIGURES EXCLUDE MEXICO WHICH GM CONSIDERS PART OF ITS NORTH AMERICAN OPERATIONS THANKS TO ECONOMIC RECOVERY TRADE LIBERALIZATION AND OTHER FACTORS THE REGION HAS BEEN A BRIGHT SPOT IN THE WORLD AUTO INDUSTRY WITH THE US MARKET IN A SLOW RECOVERY AND EUROPE IN DEEP RECESSION IN THE FIRST HALF GM ATTRIBUTED A 30 GAIN IN OVERSEAS AUTOOPERATIONS EARNINGS TO SPECTACULAR RESULTS IN LATIN AMERICA GM'S VEHICLE SALES IN LATIN AMERICA SOARED 39 LAST YEAR TO 406000 UNITS MR NEROD SAID HE ADDED THAT DOLLAR SALES WERE UP SUBSTANTIALLY MORE THAN THAT BECAUSE GM WAS ABLE TO SELL MORE HIGHERPRICED VEHICLES THAN IN 1992 MR NEROD ALSO ATTRIBUTED HIGHER PROFITABILITY LAST YEAR IN LATIN AMERICA TO TIGHT COST CONTROLS HIGHER PLANT PRODUCTIVITY EFFICIENT NEWMODEL LAUNCHES AND MODEST INVESTMENT IN NEWVEHICLE PROGRAMS THE 1993 RESULTS STILL LEFT GM NO 2 IN THE REGION WITH ABOUT 18 OF THE MARKET COMPARED WITH VW'S 21 OR SO IN OUTLINING HIS PLANS FOR THE NEXT FIVE YEARS MR NEROD SAID WE WANT TO BECOME NO 1 BY THE END OF THAT PERIOD THOUGH HE CAUTIONED THAT WE WON'T DO ANYTHING CRAZY TO DO THAT MR NEROD SAID GM PLANS TO MORE THAN DOUBLE CAPITAL SPENDING IN THE REGION OVER THE NEXT FIVE YEARS TO ABOUT 2 BILLION HE SAID THOSE FUNDS WILL BE INTERNALLY GENERATED COMING ON TOP OF EXPECTED DIVIDENDS BACK TO THE PARENT COMPANY THE MONEY WILL GO INTO MODERNIZED PRODUCT LINES AND ADDITIONAL ASSEMBLY CAPACITY IN ARGENTINA BRAZIL AND ELSEWHERE HE SAID THE INVESTMENT WE ARE LOOKING AT IS TO SUSTAIN OUR POSITION IN THE FACE OF EXPECTED NEW COMPETITION MR NEROD SAID SUCH JAPANESE CAR MAKERS AS TOYOTA MOTOR CORP NISSAN MOTOR CO AND HONDA MOTOR CO ARE EXPECTED TO BEEF UP THEIR LATIN AMERICAN OPERATIONS HE SAID ADDING THAT NEW COMPETITION FROM LOWCOST KOREAN IMPORTS IS ALSO LIKELY CONSEQUENTLY GM'S LATIN AMERICAN OPERATION WILL HAVE TO OFFER FRESHER PRODUCTS MORE FREQUENTLY THAN IN THE PAST MR NEROD SAID LATIN AMERICAN UNITS OF THE WORLD'S CAR MAKERS HAVE OFTEN CONTINUED SELLING SOME MODELS SUCH AS THE CHEVROLET CHEVETTE AND THE VW BEETLELONG AFTER DISCONTINUING THEM ELSEWHERE WITH STIFFER COMPETITION WE CAN'T DO THAT ANYMORE MR NEROD SAID FOR THIS YEAR MR NEROD IS FORECASTING A SLIGHT EASING OF THE TOTAL LATIN AMERICAN MARKET INCLUDING MEXICO TO 25 MILLION OR 26 MILLION VEHICLES COMPARED WITH LAST YEAR'S RECORD 28 MILLION SALES BUT HE PREDICTED THAT THE MARKET WOULD RESUME ITS EXPANSION AND HIT 32 MILLION UNITS BY 2000 9401170091 940117 WHO'S NEWS TOYOTA'S TOYODA RECEIVES OFFER TO LEAD KEY LOBBY TOKYO JAPAN INC IS ABOUT TO GET A NEW FACE SHOICHIRO TOYODA CHAIRMAN OF TOYOTA MOTOR CO HAS BEEN OFFERED THE CHAIRMANSHIP OF KEIDANREN JAPAN'S LEADING BIGBUSINESS LOBBY MR TOYODA 68 YEARS OLD SAID IN A STATEMENT FRIDAY THAT HE IS CONSIDERING THE OFFER AND HE IS WIDELY EXPECTED TO ACCEPT MR TOYODA NOW VICE CHAIRMAN OF KEIDANREN WOULD SUCCEED GAISHI HIRAIWA 79 WHO HAS SERVED IN THE POST FOR THREE YEARS MR TOYODA'S APPOINTMENT MARKS A SYMBOLIC CHANGING OF THE GUARD FOR JAPAN'S STODGY BUSINESS COMMUNITY ALTHOUGH JAPAN'S AUTO INDUSTRY HAS RISEN TO INTERNATIONAL PROMINENCE OVER THE PAST TWO DECADES THE INTERNATIONALLY ORIENTED CAR MAKERS EVEN CONSERVATIVE TOYOTA WERE A BIT TOO INDEPENDENT FOR JAPAN INC'S BLOOD SO KEIDANREN CHOSE ITS LEADERS FROM GRAYING INDUSTRIES LIKE STEEL MR HIRAIWA FOR EXAMPLE HAILS FROM TOKYO ELECTRIC POWER CO AN ELECTRIC UTILITY MR TOYODA WILL TAKE OVER KEIDANREN AT A CRITICAL POINT IN THE LOBBY'S HISTORY BIG BUSINESS IS STRUGGLING TO OVERCOME JAPAN'S STUBBORN RECESSION THE WORST SINCE WORLD WAR II 9401170090 940117 GLOBAL VIEW CLINTON LOOKED GOOD BUT WHAT OF THE SUBSTANCE BY GEORGE MELLOAN PRESIDENT CLINTON HAD A GOOD TOUR OF EUROPE HE MADE JOLLY BIG MAN TALK WITH HELMUT KOHL WORKED THE CROWDS WELL AND DID NOTHING TO DISTRACT THE NEW RUSSIAN DUMA FROM ITS FISTICUFFS AND TABLE BANGING THUS AIDING BORIS YELTSIN'S PLAN TO TREAT THE MEMBERS LIKE CHILDREN CLEARLY MR CLINTON IS A PRESIDENT WITH A KNACK FOR POLITICKING AS HIS FANS SAY HE HAS AN AGILE MIND AND SEEMS ALMOST INCAPABLE OF THE VERBAL GAFFES THAT HAVE PLAGUED MANY PAST PRESIDENTS INCLUDING TWO EISENHOWER AND FORD WHOSE SUBSTANTIVE PERFORMANCE IN OFFICE WAS QUITE GOOD AS A GOODWILL AMBASSADOR MR CLINTON EXCELS SUCH SKILL IS NOT NOTHING AN AMERICAN PRESIDENT WHO CAN PRESENT AN ATTRACTIVE IMAGE TO THE PEOPLES OF OTHER NATIONS BROADENS THE POLITICAL DIMENSIONS OF HIS FOREIGN POLICY JOHN F KENNEDY HAD THAT ABILITY SOMEHOW TRANSCENDING SOVIET THOUGHTCONTROL TO PROJECT A WHOLESOME PRESENCE INTO RUSSIAN HOMES AT THE HEIGHT OF THE COLD WAR THIS TALENT MAY BE EVEN MORE IMPORTANT TODAY BECAUSE THE IMAGE OF AMERICA COULD INFLUENCE THE POLITICS OF EMERGING DEMOCRACIES MR CLINTON SET THE RIGHT TONE IN MOSCOW WHEN HE URGED RUSSIANS TO LOOK TO THE FUTURE NOT TO THE PAST AND CONTINUE MOVING TOWARD POLITICAL AND ECONOMIC REFORM BUT OF COURSE THERE IS MORE TO LEADERSHIP THAN MERELY THE PROJECTION OF PERSONALITY EVEN IN THIS AGE OF NASCENT DEMOCRACIES AN AMERICAN PRESIDENT IS NOT DEALING DIRECTLY WITH NATIONAL ELECTORATES HE IS TREATING WITH OTHER LEADERS THEY ARE ON THE WHOLE INDIVIDUALS WHO WOULD NOT BE WHERE THEY ARE WERE THEY NOT POSSESSED OF STRONG WILLS IN THE NATURAL ORDER OF THINGS THEY SET ABOUT TO TEST THE WILLS OF OTHER POLITICIANS NIKITA KHRUSHCHEV SENSED THAT THERE MIGHT BE INDECISION LURKING BEHIND JFK'S CHARISMA TESTED THE YOUNG PRESIDENT'S WILL AND ALMOST PROVOKED WORLD WAR III SOMETIMES AN IMAGE OF CHEERFUL AMIABILITY CAN CREATE THE WRONG IMPRESSION AMONG PEOPLE WHO HAVE THE POWER TO MAKE A PRESIDENT'S LIFE NOT TO MENTION THE COURSE OF WORLD EVENTS DIFFICULT POLITICAL ANALYSTS WHO DABBLE IN PSYCHOLOGY SAY THAT BILL CLINTON IS A MAN WITH A STRONG NEED TO BE LOVED THAT THEORY EVEN HAS SOME SPECIFIC ANECDOTAL SUPPORT BUT IT COULD BE ARGUED THAT ANYONE WILLING TO ENDURE THE SLINGS AND ARROWS OF PUBLIC LIFE MUST HAVE A STRONG THIRST FOR THE PUBLIC ADULATION THAT RELIEVES THE RIGORS OF SUCH A LIFE IT IS HARDLY AN ORIGINAL OBSERVATION THAT POLITICIANS AS WITH ACTORS TRY TO MAKE PEOPLE LIKE THEM THE QUESTION IS NOT WHETHER BUT HOW MUCH A PRESIDENT'S POLICIES MAY TELL MORE THAN HIS PERSONALITY ABOUT HOW MUCH HE NEEDS TO BE LIKED IF THE NEED IS TOO STRONG IT CAN BE A PROBLEM ESPECIALLY IN THE CONDUCT OF FOREIGN POLICY THE BOOK ON MR CLINTON AFTER HIS EIGHTDAY SWING AROUND EUROPE IS THAT YES HE POSSIBLY WANTS TOO MUCH TO BE LIKED BLESSED ARE THE PEACEMAKERS BUT AN AMERICAN PRESIDENT WHO SEEMS TOO COMPLIANT MAY WELL FIND HIS PATH STREWN WITH LAND MINES MR CLINTON'S FIRST BIG FOREIGN POLICY MISTAKE WAS TO TELL THE WORLD THAT HIS ADMINISTRATION WOULD FOCUS PRIMARILY ON DOMESTIC POLICY IT WAS A TACTICAL MISTAKE IN THAT IT SUGGESTED THAT THIS PRESIDENT WAS DEFAULTING ON AMERICA'S WORLD LEADERSHIP IT WAS AN ERROR OF PRINCIPLE IN THAT IT BETRAYED A MISUNDERSTANDING OF THE ROLE OF THE PRESIDENT IN THE AMERICAN FEDERAL SYSTEM NATIONAL SECURITY IS THE PRESIDENT'S MOST IMPORTANT JOB GOVERNORS CAN HANDLE WELFARE OR HEALTH POLICY BUT ONLY A PRESIDENT'S DECISIONS WILL DETERMINE WHETHER THE NATION ENJOYS PEACE OR SUFFERS WAR OR FOR THAT MATTER FALLS VICTIM TO A FATAL ASSAULT FROM ITS ENEMIES MR CLINTON TRIED TO SHUCK OFF FOREIGN POLICY TO THE UNITED NATIONS AND GOT SOMALIA FOR HIS TROUBLES IT IS NOT YET CLEAR THAT HE HAS LEARNED MUCH ABOUT THE POSSIBLE CONSEQUENCES OF SHIRKING HIS MOST IMPORTANT RESPONSIBILITY THE EUROPEAN TOUR ALSO BETRAYED A TENDENCY TO FOLLOW THE COURSE OF LEAST RESISTANCE AT THE NATO SUMMIT HE LAUNCHED PARTNERSHIP FOR PEACE AN ILLDEFINED PLAN THAT WILL GIVE THE FORMER SOVIET SATELLITES OF CENTRAL EUROPE A LITTLE BUT NOT MUCH COMFORT ABOUT THEIR OWN SECURITY HIS ALTERNATIVE WOULD HAVE BEEN TO START PULLING POLAND THE CZECH REPUBLIC AND HUNGARY UNDER NATO'S SECURITY UMBRELLA RELIEVING THEIR VERY PALPABLE FEARS OF ONCE AGAIN BEING THROWN TO THE WOLVES OF ABSOLUTISM MR CLINTON ALSO TALKED LEONID KRAVCHUK OF UKRAINE INTO DOING SOMETHING DETAILS WERE NOT REVEALED TO RID HIS COUNTRY OF NUCLEAR WEAPONS EVEN THOUGH MR KRAVCHUK'S PARLIAMENT STRONGLY OPPOSES THIS CONCESSION TO RUSSIA PUTTING IT IN NUMERICAL TERMS THE PRESIDENT DIDN'T WANT TO DO ANYTHING FORCEFUL FOR THE 200 MILLION PEOPLE WHO INHABIT THE NONRUSSIAN FORMER COMMUNIST STATES OF EUROPE HE FEARED THAT IT MIGHT ANTAGONIZE THE 150 MILLION WHO INHABIT THE RUSSIAN FEDERATION HE SURRENDERED TO THE LIKES OF VLADIMIR ZHIRINOVSKY EVEN BEFORE HE GOT TO RUSSIA EARNING FOR HIS TROUBLE ONLY VITUPERATION FROM THAT WORTHY AT THE NATO SUMMIT AS WELL THE PRESIDENT SHUCKED OFF SOME US RESPONSIBILITIES IN WESTERN EUROPE ACCEDING TO FRENCH DEMANDS THAT THE WESTERN EUROPEAN UNION SHARE COMMAND OVER NATO FORCES IF NATO HAS BEEN POWERLESS IN THE BOSNIAN CRISIS IT WILL BE EVEN MORE HELPLESS NOW WITH A DIVIDED COMMAND OF COURSE THAT COULD BECOME IMMATERIAL IN A FEW MORE YEARS BECAUSE IT IS NOT CERTAIN THAT THERE WILL BE ANY SIGNIFICANT NUMBERS OF TROOPS LEFT TO COMMAND IF THE US AND EUROPE CONTINUE DISARMING AT THE PRESENT RATE AS TO BOSNIA THAT WAS BRUSHED OFF WITH YET A THIRD THREAT OF AIR STRIKES BUT TO BE CARRIED OUT ONLY IF UN SECRETARY GENERAL BOUTROS BOUTROSGHALI ORDERS THEM THE NATO SUMMIT ENDED WITH CHEERFUL QUOTES FOR THE PRESS ABOUT HARMONY BUT IT IS RELATIVELY EASY TO HAVE HARMONY IF YOU AGREE IN ESSENCE TO DO NOTHING NATO INSIDERS FEAR THAT THE ALLIANCE IS UNRAVELING FINALLY THERE WAS YESTERDAY'S LONGWINDED MEETING IN GENEVA WITH THE MURDEROUS HAFEZ ASSAD OF SYRIA WHICH ENDED WITH MR ASSAD'S PROTESTATIONS OF PEACEFUL INTENT MR CLINTON'S STATE DEPARTMENT SEEMS TO HAVE DECIDED THAT ASSAD HOLDS THE KEY TO MIDEAST PEACE IF THAT IS TRUE AND IT IS DOUBTFUL ANYONE UNWARY ENOUGH TO TRUST HIM TO USE IT CONSTRUCTIVELY DESERVES TO HAVE THE DOOR SLAMMED ON HIS FOOT WHICH WOULD BE THE LIKELY RESULT SOME MIGHT SAY THAT WHAT SEEMS LIKE WEAKNESS IN MR CLINTON IS MERELY THE WORK OF AN ADROIT POLITICIAN MANEUVERING IN A WORLD WHERE ALL THE CUSTOMARY SIGNPOSTS HAVE BEEN TOPPLED MAYBE SO BUT BEWARE THE LIKES OF KIM IL SUNG OR SADDAM OR RAFSANJANI MANEUVER CERTAINLY SMILE FOR THE CAMERAS BUT NEVER FORGET TO BE TOUGH WHEN TOUGHNESS IS DEMANDED 9401170089 940117 LAW BANKER PLEADS INNOCENT TO LAUNDERING CHARGES BROWNSVILLE TEXAS AP A CURRENT EXECUTIVE OF AN AMERICAN EXPRESS CO UNIT AND ONE OF THE UNIT'S FORMER EMPLOYEES PLEADED INNOCENT TO CHARGES OF HELPING A REPUTED MEXICAN DRUG KINGPIN LAUNDER 30 MILLION ANTONIO GIRALDI AND MARIA LOURDES REATEGUI ARE ACCUSED OF SEVERAL COUNTS OF LAUNDERING PROFITS FROM THE ALLEGED DRUG ORGANIZATION OF JUAN GARCIA ABREGO A MEXICAN FUGITIVE MR GIRALDI IS A SENIOR VICE PRESIDENT FOR AMERICAN EXPRESS BANK INTERNATIONAL'S MIAMI OFFICE AND MS REATEGUI IS A FORMER EMPLOYEE OF THE BANK'S LOS ANGELES OFFICE US MAGISTRATE JOHN WILLIAM BLACK TENTATIVELY SCHEDULED TRIAL FOR THE TWO TO BEGIN MARCH 4 THE 18COUNT FEDERAL INDICTMENT ISSUED LAST MONTH ACCUSES THE TWO OF SETTING UP INTERNATIONAL BANK ACCOUNTS FOR RICARDO AGUIRRE VILLAGOMEZ A GASSTATION OWNER FROM MATAMOROS MEXICO WHO IS NAMED AS A KEY MONEY LAUNDERER FOR THE DRUG RING MR GARCIA ABREGO WHO IS WANTED IN BOTH THE US AND MEXICO WAS ACCUSED IN A 1990 US INDICTMENT OF RUNNING A MATAMOROSBASED ORGANIZATION THAT SMUGGLED MULTITON QUANTITIES OF COCAINE INTO THE US THROUGH TIES TO COLOMBIAN DRUG LORDS 9401170088 940117 LITTON UNIT ENTERS GUILTY PLEA IN FINALE OF CORRUPTION PROBE ALEXANDRIA VA A LITTON INDUSTRIES INC UNIT PLEADED GUILTY TO FRAUD AND CONSPIRACY CHARGES AND AGREED TO PAY 39 MILLION IN THE FINALE OF THE MOST SUCCESSFUL MILITARY CORRUPTION PROBE IN MODERN TIMES AS PART OF THE PLEA AGREEMENT FILED IN FEDERAL COURT HERE OFFICIALLY ENDING THE SIXYEAR OPERATION ILL WIND INVESTIGATION LITTON CONCEDED THAT IT CONSPIRED WITH A CONSULTANT TO TRY ILLEGALLY TO OBTAIN BIDRELATED INFORMATION ON THREE NAVY CONTRACTS BY PAYING CRIMINAL AND CIVIL PENALTIES THE COMPANY SAID IT WAS ASSURED THAT NONE OF ITS UNITS WILL BE SUSPENDED OR BARRED FROM RECEIVING ADDITIONAL GOVERNMENT BUSINESS RELYING ON EXTENSIVE USE OF WIRETAPS AND PLEA AGREEMENTS THE NATIONWIDE PROBE HAS RESULTED IN THE CONVICTION OF MORE THAN 60 INDIVIDUALS AND COMPANIES AS WELL AS MORE THAN 250 MILLION IN RECOVERIES FOR THE US TREASURY ATTORNEY GENERAL JANET RENO CALLING THE PROBE ONE OF THE MOST SUCCESSFUL WHITECOLLAR CRIME INVESTIGATIONS EVER PURSUED BY THE GOVERNMENT SAID IT WILL SERVE AS A PROTOTYPE FOR FUTURE INVESTIGATIONS INTO ENVIRONMENTAL CRIMES HEALTHCARE FRAUD INSURANCE FRAUD AND OTHER SCHEMES AGAINST THE GOVERNMENT JOE ARONICA THE ASSISTANT US ATTORNEY WHO PROSECUTED ALL OF THE ILL WIND DEFENDANTS SAID OVER THE WEEKEND THAT THE INVESTIGATION PROMPTED THE PENTAGON TO CRACK DOWN ON THE USE OF CONSULTANTS AS A RESULT OF THE SCANDAL MR ARONICA SAID DEFENSE CONCERNS ALSO WERE FORCED TO STEP UP INTERNAL ETHICS COMPLIANCE PROGRAMS AND GIVE THE GOVERNMENT GREATER ACCESS TO SUCH AUDITS AS PREVIOUSLY REPORTED LITTON REMAINS THE SUBJECT OF TWO OTHER CRIMINAL INVESTIGATIONS INVOLVING ALLEGEDLY IMPROPER PAYMENTS TO A MARKETING CONSULTANT IN TAIWAN AND CLAIMS BY A WHISTLEBLOWER THAT ONE OF THE COMPANY'S UNITS OVERCHARGED MILITARY AND COMMERCIAL CUSTOMERS FOR GYROSCOPE REPAIRS 9401170087 940117 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SOUTH KOREA'S ECONOMIC PLANNING BOARD UNVEILED INCENTIVES INCLUDING TAX BREAKS TO ENCOURAGE PRIVATE PARTICIPATION IN PUBLICWORKS CONSTRUCTION SUCH AS ROADS AND PORTS COMPANIES COULD EVEN OWN PART OF WHAT THEY BUILD MOST ECONOMISTS AGREE ON THE NEED TO IMPROVE THE INADEQUATE INFRASTRUCTURE THAT HAMPERS THE ECONOMY BUT THE GOVERNMENT HAS BEEN STINGY AMID WARINESS ABOUT BUDGET DEFICITS AND INFLATIONARY EFFECTS OF EXPANDED PUBLIC PROJECTS THE NEW MEASURE ASSUMING IT IS APPROVED BY PARLIAMENT WOULD LET COMPANIES CHARGE TOLLS AND RENTS FROM PUBLICSECTOR PROJECTS AND BUILD LEISURE AND TOURIST FACILITIES BY ROADS OR RAILWAYS TO ATTRACT MORE USERS PARTICIPANTS WOULD BE EXEMPT FROM PAYING SOME TAXES AND FEES AND COULD BORROW ABROAD NOW TIGHTLY RESTRICTED BECAUSE OF RULES THAT REPEL INVESTORS PRIVATE FIRMS PARTICIPATE IN LESS THAN 5 OF SOUTH KOREA'S PUBLIC WORKS TO HELP DEFRAY ITS TRAINING COSTS SWISSAIR IS OFFERING RIDES IN FLIGHT SIMULATORS WHEN PILOTS AREN'T USING THE 20 MILLION MACHINES RENTAL PRICES RANGE FROM 338 TO 575 AN HOUR DEPENDING ON THE MODEL THE SWISS FLAG CARRIER HAS SEVEN REPRESENTING FIVE TYPES OF JETS THE AIRLINE WHICH USES THE DEVICES BETWEEN 4000 AND 5000 HOURS A YEAR HOPES TO RENT ABOUT 1000 HOURS TO THE PUBLIC SWISSAIR STAFF WILL EXPLAIN COCKPIT CONTROLS AND GUIDE FLYING BUFFS THROUGH A TAKEOFF FLIGHT MANEUVERS AND LANDING BRITAIN'S OFFICE OF FAIR TRADING ASKED THE MERGERS AND MONOPOLIES COMMISSION TO INVESTIGATE THE VIDEOGAME INDUSTRY FOR ANY UNCOMPETITIVE TRADE PRACTICES THE MARKET FOR VIDEOGAMES EQUIPMENT AND SOFTWARE IN BRITAIN TOTALS 105 BILLION ANNUALLY THE INQUIRY WAS RECOMMENDED FOLLOWING PUBLIC COMPLAINTS THAT PRICES WERE TOO HIGH AND FAR MORE THAN IN THE US RETAILERS SAY DISTRIBUTION PRACTICES HINDER THEIR PRICING FREEDOM AND SOFTWARE PUBLISHERS FAULT LICENSING DEALS THAT CONTROL PRODUCTION OF GAMES FOR USE ON CERTAIN EQUIPMENT A GOVERNMENT OFFICIAL SAID IN AN EFFORT TO INCREASE ACCEPTANCE OF FOREIGNERS GERMANY'S BIGGEST TELEVISION NETWORK SAID IT PLANNED TO HIRE MORE NONGERMANS AS ANCHORS WESTDEUTSCHE RUNDFUNK KNOWN AS WDR ALSO WILL SHOW MORE PROGRAMS DEPICTING DAILY LIVES OF FOREIGNERS IN GERMANY AND EDUCATIONAL SPOTS TO COUNTER NEONAZI ATTACKS AND OTHER RACIST VIOLENCE THAT HAVE REARED UP SINCE GERMAN REUNIFICATION IN 1990 WDR SAID ITS TV AND RADIO NETWORK WOULD TRY TO COMBAT THE SPREAD OF RIGHTIST IDEOLOGY THROUGH PROGRAMS THAT ENCOURAGE UNDERSTANDING AND DISPEL PREJUDICE PAKISTAN'S GOVERNMENT AIMS TO TAX WEALTHY LANDOWNERS A POWERFUL GROUP THAT DOMINATES THE ECONOMY AND HAS LEGALLY AVOIDED TAXES FOR DECADES THE PLAN WHICH WOULD RAISE 230 MILLION A YEAR AND HELP RELIEVE THE COUNTRY'S CHRONIC FINANCIAL PROBLEMS WAS DEVISED BY PRIME MINISTER BENAZIR BHUTTO IN RESPONSE TO PRESSURE FROM THE INTERNATIONAL MONETARY FUND WHICH WANTS THE LEVY IMPOSED BEFORE APPROVING A 13 BILLION LOAN THE TAX PROPOSAL WAS VIEWED AS A TEST OF THE GOVERNMENT'S SERIOUSNESS ABOUT ECONOMIC REFORMS MRS BHUTTO'S COALITION GOVERNMENT IS EXPECTED TO APPROVE THE MEASURE SOON RESIDENTS IN AND AROUND PUSAN SOUTH KOREA'S SECONDLARGEST CITY BOUGHT BOTTLED WATER OR LINED UP AT MINERALWATER SPRINGS AFTER THE ENVIRONMENT AGENCY SAID THEIR TAP WATER HAD BEEN CONTAMINATED BY CHEMICAL WASTE THAT CAN CAUSE CANCER AND OTHER ILLNESSES IN TESTS AFTER COMPLAINTS ABOUT FOUL ODORS BENZENE AND TOLUENE WERE FOUND IN THE NAKDONG RIVER THE MAIN WATER SUPPLY FOR ABOUT 10 MILLION RESIDENTS OF THE SOUTHERN AREA THE LEVELS DETECTED WERE WITHIN PERMISSIBLE LIMITS FOR DRINKING WATER AND THE CONTAMINATION WAS PRESUMED TEMPORARY CAUSED BY ILLEGAL INDUSTRIAL DUMPING ARREST WARRANTS WERE ISSUED FOR A CHEMICAL COMPANY'S OFFICIALS IN THE FIRST AUCTION OF A NATURALGAS PRODUCER IN ITS PRIVATIZATION PROGRAM RUSSIA NEXT MONDAY WILL OPEN A MONTHLONG OFFERING OF NORILSKGAZPROM STOCK RUSSIAN INVESTORS MAY USE PRIVATIZATION VOUCHERS TO BID FOR A 6 STAKE IN THE MIDSIZE GAS COMPANY THE GOVERNMENT THROUGH ITS GAZPROM GASMONOPOLY HOLDING COMPANY WILL RETAIN A 38 HOLDING AND A MAJORITY OF VOTING SHARES FOR AS LONG AS THREE YEARS IN A STRATEGY TO KEEP INITIAL CONTROL AS THE FIRMS ARE SOLD OFF WORKERS AT THE COMPANY IN NORTHERN RUSSIA NEAR THE TOWN OF NORILSK OWN 51 OF THE SHARES AND 5 IS RESERVED FOR RESIDENTS OF THE REGIONS AROUND NORILSKGAZPROM'S FIELDS IN LAST YEAR'S FIRST 11 MONTHS NORILSKGAZPROM'S OUTPUT TOTALED 43 BILLION CUBIC METERS DOWN 57 FROM A YEAR EARLIER GERMAN POLITICAL LEADERS AGREED TO MOVE PARLIAMENT TO BERLIN FROM BONN ALONG WITH GOVERNMENT AGENCIES BY THE YEAR 2000 THE GOVERNMENT COULDN'T RELOCATE THE 662MEMBER LEGISLATURE WITHOUT LAWMAKERS' APPROVAL RUSSIA'S PARLIAMENT IS WEIGHING A PLAN TO SLASH THE COUNTRY'S ENERGY USE 30 THIS YEAR THROUGH EFFICIENCY IMPROVEMENTS AND FURTHER INCREASES IN PRICES PREVIOUSLY KEPT ARTIFICIALLY LOW THROUGH SUBSIDIES 9401170086 940117 WHAT'S NEWS WORLDWIDE RUSSIA'S REFORM CZAR RESIGNED ONE DAY AFTER CLINTON'S DEPARTURE THE RIFT IN THE RUSSIAN GOVERNMENT BROKE INTO THE OPEN AS ITS ARCHITECT OF ECONOMIC REFORM GAIDAR SAID HE WAS STEPPING DOWN IN A LETTER TO PRESIDENT YELTSIN GAIDAR CITED UNCEASING PRESSURE ON THE PART OF CONSERVATIVE POLITICAL CIRCLES AGAINST REFORM HIS ABRUPT MOVE CAME DESPITE YELTSIN'S PLEDGE MADE AT THE JUSTCOMPLETED SUMMIT WITH CLINTON THAT RUSSIA WOULD PRESS AHEAD WITH MARKET REFORMS WITH GAIDAR OUT OF THE CABINET REFORMS ARE LIKELY TO PROCEED MORE GRADUALLY THERE WAS SPECULATION THAT TWO OTHER RADICAL REFORMERS ALSO WOULD RESIGN FINANCE MINISTER FYODOROV AND RUSSIA'S PRIVATIZATION CHIEF CHUBAIS SYRIAN LEADER ASSAD AGREED TO SEEK NORMAL RELATIONS WITH ISRAEL DURING TALKS WITH CLINTON THE SYRIAN PRESIDENT OFFERED ISRAEL NORMAL PEACEFUL RELATIONS UNDER CERTAIN CONDITIONS CLINTON HAILED THE OVERTURE AND SAID ASSAD HAD DECIDED TO TAKE THE RISKS NEEDED FOR PEACE ASKED IF ASSAD'S DEFINITION OF PEACE WOULD MEAN OPEN BORDERS FREE TRADE AND DIPLOMATIC RELATIONS AS ISRAEL HAS SOUGHT CLINTON SAID THE SHORT ANSWER IS YES ISRAEL'S RABIN WITHHELD COMMENT UNTIL HE IS BRIEFED BY US OFFICIALS HUNDREDS OF ISRAELI SETTLERS LIVING IN THE GOLAN HEIGHTS CLASHED WITH POLICE BURNED TIRES AND BLOCKED A ROAD TO PROTEST THE USSYRIA SUMMIT MEXICO'S PRESIDENT STEPPED UP PRESSURE ON MEXICAN REBELS TO NEGOTIATE PEACE ANNOUNCING THAT AN AMNESTY COVERING THEIR REBELLION WOULD EXPIRE SALINAS SAID THAT THE FOURDAYOLD AMNESTY OFFER FOR ALL THE PARTICIPANTS IN THE VIOLENT ACTS THAT BEGAN ON JAN 1 WAS ENDING EFFECTIVE YESTERDAY SECRETARY OF STATE CHRISTOPHER CAST DOUBT ON EXILED HAITIAN PRESIDENT ARISTIDE'S FEB 7 TARGET DATE FOR RESUMING POWER SAYING IT PROBABLY IS NOT WORKABLE ARISTIDE HOSTING A WEEKEND CONFERENCE IN MIAMI URGED FOREIGN GOVERNMENTS TO HELP RESTORE HIM TO OFFICE BY EARLY NEXT MONTH THE FOREST SERVICE SAID IT INTENDS TO CANCEL A CONTRACT THAT PROVIDES LARGE AMOUNTS OF CHEAP TIMBER TO ALASKA PULP CO THE CONTRACT IS ONE OF TWO 50YEAR PACTS THAT ENVIRONMENTALISTS AND MANY US FOREST MANAGERS SAY HAVE PROMOTED SEVERE OVERCUTTING IN THE TONGASS NATIONAL FOREST IN SOUTHEAST ALASKA JAPANESE OFFICIALS ARE CONDUCTING AN INVESTIGATION INTO THE FLOW OF HIGH TECHNOLOGY FROM JAPANESE COMPANIES TO NORTH KOREA WHICH IS WIDELY SUSPECTED OF DEVELOPING NUCLEAR WEAPONS TOKYO POLICE SAID THEY ARE MAKING SEARCHES AND QUESTIONING OFFICIALS AT NEARLY A DOZEN DIFFERENT COMPANIES ELDERS OF SOMALIA'S RIVAL CLANS SIGNED A PEACE ACCORD MEDIATED BY ISLAMIC LEADERS BUT IT WAS UNCERTAIN WHETHER THE TWO MAIN FACTION LEADERS IN MOGADISHU WOULD HEED CALLS TO LAY DOWN THEIR ARMS THE TWO LEADERS AIDID AND ALI MAHDI DIDN'T SEND REPRESENTATIVES TO THE CONFERENCE FIGURE SKATER TONYA HARDING INSISTED IN A WRITTEN STATEMENT THAT SHE HAD NOTHING TO DO WITH A JAN 6 ATTACK ON RIVAL NANCY KERRIGAN AND HARDING'S COACH SAID SHE DESERVES TO COMPETE IN THE OLYMPICS NEXT MONTH HARDING'S BODYGUARD AND TWO OTHER MEN HAVE BEEN CHARGED WITH CONSPIRACY TO ASSAULT KERRIGAN ITALY'S PRESIDENT DISSOLVED PARLIAMENT AND REJECTED PREMIER CIAMPI'S RESIGNATION ASKING HIM TO REMAIN AS HEAD OF A CARETAKER GOVERNMENT UNTIL ELECTIONS ARE HELD THE EARLY PARLIAMENTARY ELECTIONS WERE SCHEDULED FOR MARCH 27 CIAMPI HAD OFFERED HIS RESIGNATION LAST WEEK DURING A NOCONFIDENCE VOTE IN PARLIAMENT REBEL JETS DROPPED CLUSTER BOMBS ON THE AFGHAN CAPITAL KILLING AND WOUNDING MANY PEOPLE THE OFFICIAL KABUL RADIO SAID AIR STRIKES WERE CARRIED OUT BOTH BY FORCES LOYAL TO PRESIDENT RABBANI AND BY HIS OPPONENTS LED BY PRIME MINISTER HEKMATYAR AND NORTHERN WARLORD DOSTUM ACCORDING TO AFGHAN SOURCES IN NEIGHBORING PAKISTAN A MILITANT BLACK GROUP SUSPENDED ITS ARMED STRUGGLE IN SOUTH AFRICA SAYING IT WANTED TO ENSURE PEACE FOR THE COUNTRY'S FIRST MULTIRACIAL ELECTION IN APRIL THE HEAD OF THE PAN AFRICANIST CONGRESS ALSO SAID HIS GROUP WAS NEGOTIATING WITH THE GOVERNMENT ON JOINING A NATIONAL PEACEKEEPING FORCE AND A TRANSITIONAL ADMINISTRATIVE BODY 9401170085 940117 TOO LITTLE TOO LATE FOR CENTRAL EUROPE BY RADEK SIKORSKI WITH PRESIDENT CLINTON'S EUROPEAN VISIT AT AN END NO DOUBT THE AMERICAN PUBLIC'S ATTENTION HAS BEGUN TO DRIFT TO MATTERS DOMESTIC WE IN CENTRAL EUROPE HAVE NO SUCH LUXURY TWO YEARS AGO CENTRAL EUROPE WOULD HAVE WELCOMED NATO'S PARTNERSHIP FOR PEACE THE PROPOSALS FOR JOINT EXERCISES TRAINING AND CONSULTATIONS WERE EXACTLY WHAT THE NEW DEMOCRACIES EXPECTED THE WEST TO OFFER TODAY WITH RUSSIAN NATIONALISM ON THE RISE IT IS TOO LITTLE TOO LATE NATURALLY CENTRAL EUROPEAN STATES SHOULD MAKE THE BEST OF WHAT IS ON OFFER SOME NATO SPOKESMEN HAVE MADE THE ARGUMENT THAT PARTNERSHIP FOR PEACE IS CANDIDATE MEMBERSHIP IN ALL BUT NAME A LITMUS TEST OF THIS WILL BE WHETHER CENTRAL EUROPEAN ARMIES ARE OFFERED THE KINDS OF ADJUSTMENT PROGRAMS ONCE OFFERED TO OTHER ASPIRING MEMBERS SUCH AS SPAIN OR PORTUGAL CENTRAL EUROPEAN OFFICERS ARE ALREADY BEING TRAINED AT WESTERN ACADEMIES NOW WHOLE STAFFS SHOULD BE INVITED TO JOIN IN PLANNING SESSIONS AND EXERCISES THE WEST SHOULD ALSO HELP BRING CENTRAL EUROPEAN MILITARY COMMUNICATIONS AND COMMANDANDCONTROL SYSTEMS INTO LINE WITH NATO SPECIFICATIONS TO EASE COMMUNICATION IN CASE OF EMERGENCIES MOREOVER IT SHOULD ADVISE THE CENTRAL EUROPEANS ON HOW TO SPEND THEIR DEFENSE BUDGETS MORE RATIONALLY PERHAPS BY SUGGESTING WHICH WARSAW PACTERA SITES SHOULD BE MAINTAINED FOR POSSIBLE NATO USE CENTRAL EUROPEAN ARMIES WOULD ALSO JUMP AT THE CHANCE TO CONDUCT PEACEKEEPING ON NATO'S BEHALF PROVIDED THE WEST FOOTS THE BILL THROUGH ITS 20 YEARS OF EXPERIENCE IN UNITED NATIONS MISSIONS THE POLISH ARMY FOR EXAMPLE IS WELL QUALIFIED TO DO THIS POORER COUNTRIES HAVE ALWAYS SUPPLIED MERCENARIES TO RICHER ONES AND THERE IS NO NEED TO BE SHY ABOUT IT EVEN IF THESE POLICIES ARE ALL CARRIED OUT OVER THE NEXT FEW YEARS AND EVEN IF THE INTENTIONS BEHIND THE PARTNERSHIP FOR PEACE ARE HONEST WE CENTRAL EUROPEANS CAN BE FORGIVEN FOR FEELING NEVERTHELESS A CERTAIN DISAPPOINTMENT THIS IS NOT JUST BECAUSE WE WERE EXCLUDED FROM THE NATO SECURITY GUARANTEE WE WERE ALSO DISMAYED BY SOME OF THE ARGUMENTS IN FAVOR OF OUR EXCLUSION AND THE TONE ADOPTED BY SOME WESTERN LEADERS FOR EXAMPLE LORD CARRINGTON NATO'S FORMER SECRETARYGENERAL ARGUED AGAINST THE ALLIANCE'S ENLARGEMENT BECAUSE FIRST THIS WOULD LEAD TO CONSIDERABLE DISQUIET BY THE RUSSIANS SECOND A NUMBER OF THE EXISTING NATO MEMBERS WOULD NOT BE VERY HAPPY TO GUARANTEE THE SOCALLED INTEGRITY OF POLAND AND SOME OF THE OTHER COUNTRIES THE SOCALLED TELLS US A LOT ABOUT THE WEST'S RESOLVE TO COME TO THE AID OF EUROPE'S NEW DEMOCRACIES THE MOST ELOQUENT EXPRESSION OF THE WESTERN ATTITUDE WAS A NEWSWEEK COVER OF A FEW WEEKS AGO THAT SHOWED A FRIGHTENED LITTLE RUSSIAN BEAR A MASCOT FROM THE MOSCOW OLYMPICS STANDING AMID DOZENS OF NASTY BLACK GUNS AIMED AT HIM FROM ALL DIRECTIONS WHO THREATENS HIM THE WEST CENTRAL EUROPE ESTONIA THE COVER DIDN'T SAY THE COMPASSION FOR THE LITTLE BEAR IS LACED WITH FEAR HE DOES WE ARE TOLD STILL OWN 30000 NUCLEAR WARHEADS SO WE MUSTN'T DO ANYTHING THAT MIGHT ANNOY HIM BETTER TO TALK TO HIM GENTLY AND FEED HIM LOTS OF HONEY THIS MIX OF SENTIMENTALITY NAIVETE AND FEAR IS EXACTLY WHAT DROVE APPEASEMENT IN THE 1930S THE DISCUSSIONS ABOUT ENLARGEMENT IGNORE ONE OF THE 20TH CENTURY'S MOST PAINFUL LESSONS SO FAR AS SECURITY IS CONCERNED WESTERN EUROPE CANNOT INSULATE ITSELF FROM THE EAST IT IS NO COINCIDENCE THAT WORLD WAR I WORLD WAR II AND THE COLD WAR WERE LARGELY FOUGHT IN AND ABOUT CENTRAL EUROPE IF HITLER HAD SUCCEEDED IN DOMINATING CENTRAL EUROPE UNOPPOSED WITH CZECH INDUSTRY ROMANIAN OIL FIELDS AND POLISH SLAVE LABOR HE COULD HAVE DOMINATED THE REST OF EUROPE AND ALMOST DID THE COLD WAR OF 194589 REINFORCES THE LESSON THAT WHOEVER CONTROLS CENTRAL EUROPE IS A THREAT TO WESTERN EUROPE AS WELL IT WAS ONLY BY OCCUPYING CENTRAL EUROPE AFTER ALL THAT THE SOVIET UNION POSED A DIRECT CHALLENGE TO THE WEST THE OLD JOKE ABOUT NATO SAYS THAT THE ALLIANCE WAS DESIGNED TO KEEP THE RUSSIANS OUT THE AMERICANS IN AND THE GERMANS DOWN UNDIPLOMATIC LANGUAGE EXCEPTED THESE ARE STILL VALID GOALS REASSURED THAT THEY ARE PROTECTED FROM BOTH GERMANY AND RUSSIA THE CENTRAL EUROPEANS THE POLES HUNGARIANS CZECHS AND SLOVAKS COULD BECOME CATALYSTS FOR DEMOCRATIC REFORM IN NATIONS FARTHER EAST IN PARTICULAR UKRAINE WHICH HAS YET TO REAFFIRM ITS PLEDGE TO GIVE UP NUCLEAR WEAPONS WOULD BE MORE LIKELY TO LIVE UP TO ITS COMMITMENT IF IT BORDERED ON NATO AREA CONTRARY TO RECEIVED WISDOM NATO'S VACILLATION ISN'T HELPING THE CAUSE OF REFORM IN THE EAST IN CENTRAL EUROPE NATO'S DECISION IS ALREADY MATERIALLY HARMING REFORM PROSPECTS THE CZECH REPUBLIC HAS CANCELED ITS PLANNED ARMY REDUCTION POLAND ALSO IS LIKELY TO STOP CUTTING ITS DEFENSE BUDGET MONEY THAT SHOULD BE ALLOCATED TO CREDITS FOR EMERGING PRIVATE COMPANIES INSTEAD WILL BE SPENT ON RESTARTING OLD WARSAW PACT ARMS FACTORIES PARTNERSHIP FOR PEACE WAS A GOOD IDEA WHEN IT WAS CONCEIVED BUT WITH RUSSIAN CHAUVINISM ON THE MARCH IT IS NOW TIME TO GO FURTHER 9401170084 940117 ECONOMY US INDUSTRIAL OUTPUT GAINED 07 IN MONTH RECENT ECONOMIC REPORTS SHOWING STRENGTH BOOST CONSUMERS' CONFIDENCE BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY'S RECENT STRENGTHENING SEEMS TO BE PUTTING AMERICANS IN A MUCH BETTER MOOD BUT ECONOMISTS STILL DOUBT THE GROWTH IN THE LAST PART OF THE YEAR WILL CONTINUE SO STRONGLY THROUGHOUT 1994 THE LATEST SIGN THAT THE YEAR FINISHED WITH A BANG WAS A FEDERAL RESERVE REPORT FRIDAY THAT INDUSTRIAL PRODUCTION ROSE 07 IN DECEMBER THE RISE DRIVEN BY HIGH PRODUCTION AT AUTO PLANTS WAS THE SEVENTH IN A ROW AND IT FOLLOWED A 09 GAIN IN NOVEMBER FOR THE YEAR INDUSTRIAL PRODUCTION WAS UP 42 COMPARED WITH A 23 RISE IN 1992 AND A 18 DECLINE IN 1991 SUCH GOOD ECONOMIC NEWS APPARENTLY IS AFFECTING PEOPLE'S ATTITUDES THE UNIVERSITY OF MICHIGAN'S INDEX ON CONSUMER SENTIMENT SHOT UP TO A HEALTHY 958 IN EARLY JANUARY FROM 882 IN DECEMBER ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT CONSUMER EXPECTATIONS ONE COMPONENT OF THE INDEX JUMPED TO 876 FROM 788 WHILE THE OUTLOOK ON CURRENT CONDITIONS PRESSED AHEAD TO 1086 UP FROM 1029 THE MICHIGAN INDEX IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS CONSUMERS HAVE MORE WIDELY RECOGNIZED THE IMPROVEMENT IN THE ECONOMY DURING THE FOURTH QUARTER ESPECIALLY IN EMPLOYMENT SAID RICHARD CURTIN DIRECTOR OF THE MICHIGAN SURVEY THE JANUARY FIGURE IS NO LONGER HOLIDAY CHEER SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER WHICH CONDUCTS ITS OWN STUDY ON CONFIDENCE LEVELS THIS IS THE REAL MCCOY AS LONG AS THE ECONOMY CONTINUES TO CREATE A MODERATE NUMBER OF NEW JOBS AND INFLATION REMAINS FLAT CONSUMERS WILL REMAIN HOPEFUL MR LINDEN SAID ACCORDING TO THE FEDERAL RESERVE REPORT PRODUCTION OF CONSUMER DURABLE GOODS EXCLUDING AUTOS ROSE 14 BUT NONDURABLES SUCH AS PAPER PRODUCTS AND GASOLINE DECLINED 02 THE BIG QUESTION IS THE SUSTAINABILITY OF THIS GROWTH RATE INTO THE FIRST QUARTER SAID DOUG HANDLER AN ECONOMIST WITH DUN & BRADSTREET I THINK THE AUTOPRODUCTION CYCLE HAS RUN ITS COURSE GOVERNMENT ECONOMISTS ARE OPTIMISTIC ROBERT RUBIN CHAIRMAN OF THE NATIONAL ECONOMIC COUNCIL SAID THE PIECES ARE FALLING INTO PLACE FOR A ROBUST ECONOMY FOR A LONG LONG LONG TIME THE FED SAID CAPACITY UTILIZATION WHICH ECONOMISTS CONSIDER AN INDICATOR OF FUTURE INFLATION JUMPED 05 PERCENTAGE POINT TO 835 LAST MONTH THE ADVANCE FOLLOWED A 07PERCENTAGEPOINT RISE IN NOVEMBER BUT ECONOMISTS THINK THE RISE DOESN'T INDICATE A THREAT OF INFLATION BECAUSE MANY FACTORIES HAVE BECOME EXTREMELY AUTOMATED AND ARE ABLE TO HANDLE BIG INCREASES IN PRODUCTION WITHOUT BOTTLENECKS THERE ALSO IS STILL A LOT OF EXCESS CAPACITY AT FACTORIES OVERSEAS REFLECTING A SLUGGISH WORLDWIDE ECONOMY BUT THERE ARE SIGNS THAT TIGHT CAPACITY IN SOME INDUSTRIES MAY BE CAUSING PRICE PRESSURES SPURRED BY GROWING DEMAND AND TIGHTER PLANT CAPACITY PRICES OF INDUSTRIAL RAW MATERIALS ARE ON THE RISE GEORGIAPACIFIC CORP FOR INSTANCE SUDDENLY IS FINDING ITSELF WITH CRIMPED CAPACITY FOR THE PRODUCTION OF PULP FOR PAPER SO AFTER THREE YEARS OF DEPRESSED PRICES IT FINALLY RAISED PRICES ON JAN 1 BY 10 MOREOVER WE'RE NOW THINKING ABOUT ANOTHER PRICE INCREASE PROBABLY FOR 10 AS WELL IN A FEW MONTHS SAYS CLINT KENNEDY A GROUP VICE PRESIDENT THE PROSPECTS FOR THAT ONE STICKING ARE EQUALLY GOOD HE ADDED NOTING THAT THE SUPPLYDEMAND BALANCE HAS TILTED IN GEORGIAPACIFIC'S FAVOR OVERALL THOUGH ECONOMISTS FEEL THAT INFLATION IS WELLBEHAVED REFERRING TO THE FED'S FIGURES ON CAPACITY UTILIZATION MR HANDLER SAID THIS IS NOT THE REPORT THAT WILL SEND THE FED OVER THE THRESHOLD TO RAISE INTEREST RATES SEPARATELY THE COMMERCE DEPARTMENT REPORTED MANUFACTURERS' INVENTORIES ROSE 06 IN NOVEMBER WHILE SALES INCREASED 11 DURING THE MONTH THE STRONG SALES FIGURES HELPED PUSH THE INVENTORYTOSALES RATIO WHICH MEASURES HOW MANY MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE DOWN TO 144 FROM 145 IN OCTOBER ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN DECEMBER THE FIGURES ARE SEASONALLY ADJUSTED THE 1987 AVERAGE 9401170083 940117 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 59 DAYS 307 60 TO 89 DAYS 310 90 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 321 180 TO 259 DAYS 330 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 314 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 272 SIX MONTHS 294 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 307 90 DAYS 309 120 DAYS 314 150 DAYS 318 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS 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 FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 697 60 DAYS 705 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401170081 940117 MARKETING & MEDIA ADVERTISING BMW PURSUES CHANGE OF IMAGE TOWARD AFFORDABILITY AND SAFETY BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW COMMERCIAL FOR BMW SCHEDULED TO BEGIN AIRING THIS EVENING SHOWS THE LUXURY CAR MANEUVERING EFFORTLESSLY ON A RURAL LAKE OF SOLID ICE THE CAR EASILY HANDLES CURVES WHILE VIRTUALLY CARVING A FIGUREEIGHT INTO THE ICE THE BMW CAN HELP YOU SLIP AWAY WITHOUT SLIPPING THE ANNOUNCER DECLARES THE PLANNED FOR THIS YEAR IN A CONTINUING EFFORT TO REPOSITION BMW AS A SAFE AFFORDABLE VEHICLE FOR THE ENTIRE FAMILY AND STEER IT FURTHER AWAY FROM ITS IMAGE AS THE LOVE BUG FOR YUPPIES THE ADVERTISING ALSO MARKS THE SECOND EFFORT BY BMW'S NEW AGENCY MULLEN ADVERTISING WHICH REPLACED AMMIRATI & PURIS LAST FEBRUARY AFTER THEIR 18YEAR RELATIONSHIP SOURED MULLEN'S FIRST ADS CAME IN FOR CRITICISM AND AUTO ANALYSTS DON'T GIVE THEM MUCH CREDIT FOR BMW'S SALES RESURGENCE IN 1993 BMW OF NORTH AMERICA THE US UNIT OF BAYERISCHE MOTOREN WERKE AG SOLD 78010 UNITS LAST YEAR A 19 INCREASE FROM 1992 SALES IN COMPARISON INFINITI HAD SALES OF 50547 UP 14 LEXUS SOLD 94677 UNITS UP 2 AND MERCEDESBENZ DIPPED 2 TO SELL 61899 UNITS INFINITI LEXUS AND MERCEDESBENZ ARE BMW'S DIRECT COMPETITORS FOR ITS PART BMW SAYS MULLEN ADVERTISING HAS HAD A VERY POSITIVE EFFECT ON SALES BUT AUTO ANALYSTS CITE OTHER REASONS FOR BMW'S BOOM THE VALUEPRICE POSITIONING AND THE PRODUCT CHANGES ARE THE REASONS SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTO FORECASTING AND CONSULTING FIRM ITS MARKETING AND ADVERTISING EFFORTS AREN'T THE CORE REASONS FOR THE SUCCESS I DON'T THINK ADVERTISING IS RESPONSIBLE FOR BMW'S INCREASE SAYS CHRIS CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP IN SANTA ANA CALIF HE SAYS BMW'S JAPANESE COMPETITORS RAISED PRICES TO BE CLOSER TO BMW'S STICKER PRICE THE LEXUS USED TO BE UNDER 37500 NOW IT'S 51000 A BMW COULD BE 55000 FOR ITS SEVEN SERIES THAT ADDS UP TO BASICALLY NO PRICE DIFFERENCE MULLEN'S FIRST TELEVISION COMMERCIALS FOR BMW WHICH PREMIERED IN MAY WERE PANNED BY MANY ON MADISON AVENUE THEY SHOWED PECULIAR FOOTAGE OF COWS AND DAISIES IN SLOW MOTION WHILE A BMW ZOOMED BY THE ADS ALSO POKED FUN AT THE COMPETITION THE WINE GLASS TEST HAS BEEN A LITTLE OVERDONE SO HAS THE BALL BEARING TEST THE REFERENCES TARGETED ADS FOR TOYOTA MOTOR'S LEXUS AND NISSAN MOTOR'S ALTIMA THE BMW AD CONTINUED BUT IN REAL LIFE WHAT COUNTS IS THE CORKSCREW TEST HAIRPIN AND STOPONADIME TESTS WHAT FOLLOWED WERE THE USUAL SHOTS OF A CAR HANDLING CURVES ALONG A WINDING MOUNTAIN ROAD I DIDN'T MUCH LIKE THE ADS SAYS BOB GARFIELD THE CRITIC FOR ADVERTISING AGE I FOUND THEM AWKWARD AND CONFUSING INDEED THE AD WORLD HAS BEEN BUZZING WITH RUMORS ABOUT DISPLEASURE AMONG BMW EXECUTIVES OVER MULLEN'S CREATIVE WORK THERE WAS TALK THAT MULLEN REACHED OUTSIDE ITS AGENCY WHICH IS BASED IN SUBURBAN BOSTON TO HIRE ADDITIONAL CREATIVE TALENT TO QUELL THE UNHAPPINESS AND ENSURE THAT THE 80 MILLION BMW ACCOUNT WOULD STAY PARKED AT THE AGENCY IN DECEMBER JACK FUND FORMERLY WITH RUBIN POSTAER & ASSOCIATES IN SANTA MONICA CALIF AND KEITH WEINMAN FROM FOOTE CONE & BELDING IN SAN FRANCISCO JOINED MULLEN AS A CREATIVE TEAM FOR BMW BOTH HAD WORKED ON HONDA ADS IT WAS ALWAYS OUR INTENTION TO HIRE A THIRD CREATIVE TEAM TO WORK ON BMW SAYS JAMES X MULLEN THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BMW AND MULLEN DENY ANY DISSATISFACTION THE RELATIONSHIP WAS NEVER IN JEOPARDY SAYS MR MULLEN INSTEAD YOU HAD A BUNCH OF PEOPLE FROM MULLEN AND BMW GETTING TO KNOW ONE ANOTHER MR MULLEN CONCEDES THERE WAS SOME ROUGHNESS WITH WHAT WAS PUT OUT ORIGINALLY CONCEPTUALLY WE WEREN'T AS TIGHT AS WE COULD HAVE BEEN DESPITE THE SELFCRITICISM MR MULLEN SAYS CONSUMER RESEARCH SHOWED PEOPLE GOT THE RIGHT MESSAGE BMW IS DYNAMIC COMFORTABLE AND AFFORDABLE THIS YEAR BMW ADS WILL CONCENTRATE ON FEATURES SUCH AS TRACTION CONTROL AND SUPERIOR ENGINEERING SAYS MR MULLEN AS WELL AS NEW MODELS ALSO IN THE WORKS IS A VIDEO SALES TAPE ON BMW'S TRACTION CONTROL THAT MR MULLEN SAYS COULD POTENTIALLY ALSO BE USED AS AN INFOMERCIAL TO HIT THE AIRWAVES IN FEBRUARY WE'RE LOOKING AT ALTERNATIVE WAYS TO GET ACROSS OUR MESSAGE IT COULD RUN ON CABLE IN NONTRADITIONAL PROGRAMMING HE SAYS BUT NOTHING IS DECIDED IF BMW INDEED PRODUCES AN INFOMERCIAL IT WILL JOIN OTHER MAJOR AUTO MAKERS INCLUDING VOLVO FORD AND GENERAL MOTORS' SATURN UNIT IN USING THE MEDIUM ACCORDING TO THE NATIONAL INFOMERCIAL MARKETING ASSOCIATION IN WASHINGTON DC BMW SAYS MULLEN ADVERTISING WILL BE INSTRUMENTAL IN THESE MARKETING PLANS AND MR MULLEN HOPES TO HEAR BETTER THINGS ABOUT SUBSEQUENT CAMPAIGNS SO FAR HE ADMITS FROM AN ADVERTISING PEER POINT OF VIEW THE ADS WERE CONSIDERED DISAPPOINTING PHILIP MORRIS'S KRAFT GENERAL FOODS AND MILLER BREWING CO CONSOLIDATED SOME OF THEIR MEDIA BUYING WITH D'ARCY MASIUS BENTON & BOWLES'S TELEVEST MEDIA UNIT EXACT BILLINGS INVOLVED IN THE CONSOLIDATION COULDN'T BE DETERMINED BUT EXECUTIVES ESTIMATE THEM AT MORE THAN 60 MILLION THE NEW ACCOUNT INCLUDES MILLER BREWING'S NATIONAL NONSPORTS ADVERTISING TIME PREVIOUSLY PURCHASED BY SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES AND KGF'S TIME IN ADULTSYNDICATION PROGRAMMING PREVIOUSLY SPLIT BETWEEN DMB&B AND LEO BURNETT CHICAGO THE NEW ARRANGEMENT MAKES STRANGE BEDFELLOWS OUT OF DMB&B AND MILLER DMB&B'S ST LOUIS OFFICE CREATES ADS FOR MILLER RIVAL ANHEUSERBUSCH BUT DMB&B OFFICIALS SAID THE ARRANGEMENT WASN'T A CONFLICT THIS IS A KGF ASSIGNMENT GIVEN TO US BY A LONGSTANDING CLIENT SAID MICHAEL MOORE DMB&B EXECUTIVE VICE PRESIDENT IF THEY CHOOSE TO USE THEIR TIME FOR MILLER WE'RE NOT GOING TO KNOW IT UNTIL VERY LATE IN THE DAY AN ANHEUSER SPOKESMAN DECLINED TO COMMENT MILLER BREWING ALSO SAID IT HAS ASSIGNED CREATIVE DUTIES ON THE SHARP'S AND MILLER RESERVE BRANDS TO BACKER THE ACCOUNTS PREVIOUSLY AT LAUGHLIN/CONSTABLE MILWAUKEE BILL ABOUT 17 MILLION EXECUTIVES ESTIMATED IN ADDITION D'ARCY MASIUS BENTON & BOWLES WON NEW CREATIVE DUTIES FROM KGF FOR THE FRIEHOFER COOKIE ACCOUNT BILLINGS COULDN'T BE DETERMINED ALBANY NY SHOP PARTNERS MEANY PREVIOUSLY HANDLED THE ACCOUNT LABATT LABATT BREWERIES A UNIT OF JOHN LABATT LTD OF TORONTO CHANGED AGENCIES FOR SEVERAL BEER ACCOUNTS IN CANADA THE BREWER MOVED ADVERTISING FOR ITS CANADIAN BEERS INCLUDING LABATT BLUE AND BLUE LIGHT TO THE TORONTO OFFICE OF AMMIRATI & PURIS BOZELL PALMER BONNER A BOZELL JACOBS KENYON & ECKHARDT UNIT WON NEW ASSIGNMENTS FOR BUDWEISER AND CARLSBERG BOTH OF WHICH LABATT DISTRIBUTES IN CANADA THE BUSINESS WAS PREVIOUSLY SPLIT AMONG AGENCIES INCLUDING WPP GROUP'S J WALTER THOMPSON YOUNG & RUBICAM AND D'ARCY MASIUS BENTON & BOWLES LABATT BILLS ABOUT 40 MILLION CANADIAN DOLLARS US303 MILLION A YEAR IN CANADA ACCOUNT RUSSELL CORP ALEXANDER CITY ALA TAPPED OMNICOM GROUP'S BBDO FOR SPORTSWEAR AND TEAMUNIFORM ADVERTISING AN ESTIMATED 10 MILLION ACCOUNT PREVIOUSLY AT GILLIS ADVERTISING BIRMINGHAM ALA 9401170080 940117 TRACTEBEL IS EXPECTED TO INCREASE ITS STAKE IN DISTRIGAZ MONOPOLY BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS BELGIAN UTILITY AND ENGINEERING COMPANY TRACTEBEL SA APPEARS POISED TO ACQUIRE AN ADDITIONAL 50 STAKE IN DISTRIGAZ A GASDISTRIBUTION MONOPOLY THE BELGIAN GOVERNMENT FRIDAY TOOK THE LONGAWAITED DECISION TO PRIVATIZE THE STATE HOLDING CONCERN SOCIETE NATIONALE D'INVESTISSEMENT WHOSE CROWN JEWEL IS A 50 STAKE IN DISTRIGAZ OFFICIALLY KNOWN AS SOCIETE DE DISTRIBUTION DE GAZ SOCIETE NATIONALE HAS MOSTLY MINORITY HOLDINGS IN DOZENS OF BELGIAN COMPANIES AND THE SALE IS EXPECTED TO RAISE AROUND 20 BILLION BELGIAN FRANCS ABOUT 555 MILLION BUT WHILE THE FINANCE MINISTRY IS PRIVATIZING DISTRIGAZ WHICH SUPPLIES NATURAL GAS TO BELGIUM'S INDUSTRIAL USERS AT THE SAME TIME IT SAID IT PLANS TO REINFORCE THE ROLE OF PUBLIC AUTHORITIES IN REGULATING THE BELGIAN ENERGY MARKET GOVERNMENT OFFICIALS DECLINED TO ELABORATE BUT THE DECLARATION UNDERLINES BELGIAN OPPOSITION TO PLANS TO LIBERALIZE PROTECTED ENERGY MARKETS IN THE 12NATION EUROPEAN UNION TRACTEBEL AN INDIRECT SUBSIDIARY OF FRANCE'S CIE FINANCIERE DE SUEZ ALREADY OWNS 33 OF DISTRIGAZ SO THE EXPECTED TRANSACTION WOULD BOOST ITS STAKE TO 83 THE GOVERNMENT HOWEVER SAID IT WOULD RETAIN A GOLDEN SHARE IN DISTRIGAZ WHICH IT SAID WOULD GIVE IT THE RIGHT TO VETO ANY CHANGES IN DISTRIGAZ'S OWNERSHIP AND ANY COMPANY DECISIONS THAT CONTRADICT GOVERNMENT ENERGY POLICY OR THE GENERAL INTEREST 9401170079 940104 LETTERS TO THE EDITOR ALL DENMARK CONSPIRED TO SAVE ITS JEWS THE DEC 22 EDITORIALPAGE ESSAY BY DOROTHY RABINOWITZ AN ARMY OF SCHINDLERS FROM ITALY PROPERLY RECOGNIZES THE EXTRAORDINARY EFFORTS OF THE ITALIAN NATION GENERALLY AND ITALY'S MILITARY IN PARTICULAR TO SAVE JEWS FROM EXTERMINATION IN A WORLD WHERE THE DEMOCRACIES DID PRECIOUS LITTLE TO PROVIDE A HAVEN FOR THOSE DESTINED TO DIE IN NAZI DEATH CAMPS THE INSPIRED COURAGE AND RESOURCEFULNESS OF GERMANY'S ITALIAN ALLY IN DEFYING HITLER DESERVES OUR ADMIRATION AND RESPECT AT THE SAME TIME LET US NOT FORGET TO ADD TO THE LIST OF SCHINDLERTYPE HEROES THE NATION OF DENMARK WHICH IN THE MIDST OF A BRUTAL NAZI OCCUPATION MANAGED TO SAVE ITS ENTIRE JEWISH POPULATION OF 8000 FROM THE GAS CHAMBERS IN 1943 AIDED AND ABETTED BY GERMAN OFFICERS WHO DEFIED BERLIN BY TIPPING OFF DANISH OFFICIALS TO NAZI PLANS TO ROUND UP ALL DANISH JEWS AND SHIP THEM TO CONCENTRATION CAMPS DENMARK'S TOTAL POPULATION LED BY KING CHRISTIAN X ORGANIZED A MASSIVE UNDERGROUND EFFORT TO HIDE THE JEWS AND SMUGGLE THEM TO SWEDEN ACROSS THE SUND WATERWAY WHILE MUCH OF THE OCCUPYING GERMAN ARMY OBSTRUCTED GESTAPO PLANS BY LOOKING THE OTHER WAY WHAT MOTIVATES HEROES LIKE OSKAR SCHINDLER IS A SUBJECT FOR ENDLESS DEBATE WHAT IS IMPORTANT IS TO RECOGNIZE THEIR SELFLESS ACTS AND HOLD THEM UP AS EXAMPLES OF CONSCIENCE COMPASSION AND COURAGE FOR OTHERS TO FOLLOW ON JAN 11 IN OBSERVANCE OF THE 50TH ANNIVERSARY OF THE DANISH RESCUE OF THE JEWS 15000 HANDWRITTEN LETTERS OF THANKS FROM AMERICAN JEWISH CHILDREN TO THE PEOPLE OF DENMARK WILL BE PRESENTED BY A GROUP OF YOUNGSTERS TO LEIF DONDE CONSULGENERAL OF DENMARK IN NEW YORK WHO WILL ACCEPT THEM ON BEHALF OF QUEEN MARGARETHE II GRANDDAUGHTER OF KING CHRISTIAN X THE LETTERS WILL BE DISPLAYED AT THE DANISH RESISTANCE MUSEUM IN COPENHAGEN MR DONDE WAS ONE OF THE 8000 JEWS WHO WERE SAVED BY HIS FELLOW DANES HALF A CENTURY AGO SEE RELATED LETTERS LETTERS TO THE EDITOR HOW HIMMLER'S DOCTOR SAVED THE LIVES OF JEWS WSJ JAN 17 1994 9401040144 YY94 MM01 9401170078 940117 PRUDENTIAL CONTEST REWARDS BROKERS FOR GATHERING ASSETS SOME ANALYSTS SEE NO HARM IN PERKS DESPITE SCANDAL OVER PUSHING PARTNERSHIPS BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC REELING FROM THE INVESTIGATION OF QUESTIONABLE SALES PRACTICES OF LIMITED PARTNERSHIPS HAS LAUNCHED A CONTEST THAT REWARDS BROKERS FOR ACCUMULATING ASSETS PRUDENTIAL'S SECOND FIRMWIDE ASSETGATHERING CONTEST A TRIBUTE TO EXCELLENCE BEGAN DEC 1 AND ENDS APRIL 29 THROUGH A COMPLEX POINTS SYSTEM THE 75 TOPSELLING BROKERS ARE ELIGIBLE TO WIN A LUXURIOUS SIXDAY FIVENIGHT FIRSTCLASS TRIP FOR TWO TO LONDON AND PARIS THE NEXT 150 TOP BROKERS CAN CLAIM A FOURDAY TRIP TO A COLORADO SPRINGS COLO RESORT POINTS ARE ACCUMULATED BY BROKERS WHO SELL RETIREMENT PLANS AND COMMAND ACCOUNTS WHICH ARE MONEYMARKET ACCOUNTS THAT PAY FLUCTUATING INTEREST RATES AND PROVIDE CHECKWRITING PRIVILEGES NO ONE IS SUGGESTING PRUDENTIAL IS PEDDLING QUESTIONABLE PRODUCTS SUCH AS LIMITED PARTNERSHIPS FOR HIGHER COMMISSION RATES IN FACT BECAUSE THE PRODUCTS CARRY LESS RISK SOME ANALYSTS SEE NO HARM IN THE CONTEST AND THERE IS NOTHING IMPROPER ABOUT REWARDING PRODUCERS WHO ROUTINELY RECEIVE TRIPS AND BEEFEDUP COMMISSIONS FOR PUSHING THE PRODUCT OF THE MONTH HOWEVER WITH PRUDENTIAL ENTRENCHED IN THE PARTNERSHIP CONTROVERSY THE CAMPAIGN CALLS INTO QUESTION THE PROPRIETY OF A CONTEST BASED MORE ON FINANCIAL INCENTIVES FOR BROKERS THAN ON SUITABILITY FOR CLIENTS GIVEN THE ADVERSE PUBLICITY THE FIRM IS GETTING IT IS SOMEWHAT INAPPROPRIATE TO HOLD A CONTEST TO REWARD BROKERS FOR GATHERING ASSETS SAID FIRST OF MICHIGAN ANALYST PERRIN LONG A PRUDENTIAL SPOKESMAN SAID THAT DESPITE THE TIMING THE FIRM SEES NOTHING WRONG WITH A CAMPAIGN THAT ENCOURAGES ASSET GATHERING THIS IS A HIGHLY FAVORABLE THING FOR CLIENTS SAID THE SPOKESMAN WILLIAM AHEARN IT'S NOT A TRANSACTIONORIENTED CONTEST AS IS THE CASE IN MOST SALES CONTESTS ON WALL STREET CLIENTS AREN'T TOLD ABOUT THE BROKERINCENTIVE PROGRAM SHOULD PRUDENTIAL HAVE SCRAPPED THE CONTEST GIVEN THE CURRENT CLIMATE IF THEY WANTED TO THEY COULD'VE CALLED IT OFF FIRST OF MICHIGAN'S MR LONG SAID BUT OBVIOUSLY THEY DIDN'T WANT TO THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT IS THE NATION'S FOURTHLARGEST SECURITIES FIRM WITH ABOUT 6000 BROKERS BUT WITH DEVELOPMENTS IN THE PARTNERSHIP SCANDAL CROPPING UP REGULARLY THERE IS CONCERN ABOUT ITS ABILITY TO RETAIN BROKERS ESPECIALLY IF THE FIRM CUTS OUT FINANCIAL INCENTIVES ANALYSTS SAY PERHAPS MINDFUL OF ITS PRESENT PARTNERSHIP TROUBLES HOWEVER THE PAMPHLET ALSO CARRIES A BLUNT WARNING TO BROKERS ALL SALES EFFORTS IN THE PROGRAM MUST BE IN ACCORDANCE AND CONSISTENT WITH PRUDENTIAL SECURITIES' HIGH PROFESSIONAL STANDARDS AND MUST BE IN THE BEST INTEREST OF THE CLIENT 9401170077 940117 OLIVETTI TO SEEK SHAREHOLDER APPROVAL FOR CAPITAL INCREASE SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN COMPUTER MAKER ING C OLIVETTI & C SPA SAID ITS BOARD RESOLVED TO SUBMIT TO AN EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS A PROPOSAL TO ALLOW THE COMPANY TO RAISE UP TO ONE TRILLION LIRE 585 MILLION IN ONE OR MORE OPERATIONS OVER A FIVEYEAR PERIOD AT THE SAME TIME THE BOARD WILL SUBMIT TO SHAREHOLDERS A PROPOSAL TO ISSUE BONDS IF NEEDED FOR UP TO THE SAME AMOUNT FOR THE SAME TIME PERIOD THE INFORMATION TECHNOLOGY INDUSTRY IS CURRENTLY UNDERGOING SWEEPING CHANGES WHICH WILL LEAD TO A NEW PERIOD OF MARKET GROWTH COMPANIES TODAY MUST THEREFORE BE ABLE TO RESPOND VERY RAPIDLY AS REGARDS BOTH CHANGES IN THEIR OFFERS AND INVESTMENTS OLIVETTI CHAIRMAN CARLO DE BENEDETTI SAID THIS APPLIES IN PARTICULAR TO MULTIMEDIA AN IMPORTANT NEW MARKET WHERE INNOVATIVE COMPUTER AND TELECOMMUNICATIONS TECHNOLOGIES CONVERGE WHICH AFFECTS EACH OF THE SECTORS IN WHICH WE OPERATE OLIVETTI INTENDS TO EXTEND ITS EUROPEAN LEADERSHIP TO THIS FIELD TOO HE SAID OLIVETTI ALSO ANNOUNCED THAT THE COMPANY'S SALES IN 1993 REACHED 8610 TRILLION LIRE UP FROM 8025 TRILLION LIRE IN 1992 NO EARNINGS FIGURES WERE RELEASED MR DE BENEDETTI SAID THE GAIN IN SALES AFTER TWO YEARS OF ZERO GROWTH REFLECTS THE MARKET'S APPRECIATION OF OLIVETTI'S NEW PRODUCT LINE AND IS AN INDICATION OF THE VITALITY WITH WHICH THE GROUP OPERATES 9401170076 940114 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 9401170075 940117 TECHNOLOGY & ENVIRONMENT ALASKA PULP MAY LOSE 50YEAR CONTRACT FOR FOREST SERVICE'S TONGASS TIMBER BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE US FOREST SERVICE TAKING AIM AT A LONGSTANDING POLICY THAT HEAVILY SUBSIDIZES CLEARCUTTING IN ALASKA'S ANCIENT FORESTS SAID IT INTENDS TO CANCEL A CONTRACT THAT PROVIDES HUGE AMOUNTS OF CHEAP TIMBER TO ALASKA PULP CO THE CONTRACT IS ONE OF TWO UNUSUAL 50YEAR PACTS THAT ENVIRONMENTALISTS AND MANY US FOREST MANAGERS SAY HAVE PROMOTED SEVERE OVERCUTTING IN THE TONGASS NATIONAL FOREST A 17 MILLIONACRE SEA OF GIANT SITKA SPRUCE AND OTHER OLD TREES THAT PROVIDE HABITAT FOR BEAR EAGLES SALMON AND MANY OTHER SPECIES IN SOUTHEAST ALASKA THE OTHER CONTRACT ALSO DATING FROM THE 1950S IS HELD BY KETCHIKAN PULP CO A UNIT OF LOUISIANAPACIFIC CO BECAUSE OF THE CONTRACTS' HEAVY SUBSIDIES WHICH UNTIL 1990 MADE A GIANT 500YEAROLD TREE ABOUT THE SAME PRICE AS A SIXPACK OF BEER THE TONGASS IS PERENIALLY ONE OF THE BIGGEST MONEYLOSERS IN THE DEFICITWRACKED FEDERAL FOREST SYSTEM ON FRIDAY THE FOREST SERVICE SAID ALASKA PULP WHICH IS OWNED BY JAPANESE INVESTORS BREACHED ITS CONTRACT BY CLOSING A PULP MILL AT SITKA IN SEPTEMBER THE SERVICE SAID THE CONTRACT WHICH ORIGINALLY WAS INTENDED TO SPUR DEVELOPMENT OF A TIMBER INDUSTRY IN ALASKA AND PROVIDE PERMANENT JOBS REQUIRED ALASKA PULP TO KEEP THE MILL OPEN HOWEVER BECAUSE OF A GLOBAL GLUT IN DISSOLVABLE PULP USED TO MAKE DISPOSABLE DIAPERS AND TOOTHBRUSH BRISTLES AMONG OTHER THINGS ALASKA PULP WAS LOSING MONEY ON THE OPERATION DESPITE THE SUBSIDIES IT HAS SHIFTED MUCH OF THE TIMBER TO A SAWMILL WHERE IT PRODUCES LUMBER FOR WHICH PRICES ARE NEAR RECORD HIGHS ALASKA PULP HAS 30 DAYS FROM THURSDAY TO COME UP WITH A PROPOSAL FOR RESOLVING ITS BREACH OF THE CONTRACT THE COMPANY SAID IT DOESN'T BELIEVE THE CONTRACT HAS BEEN BREACHED AND SAID IT HAS PROVIDED INFORMATION TO THE FOREST SERVICE THAT WILL RESOLVE DIFFERENCES ON THE MATTER BUT ENVIRONMENTAL ATTORNEYS DOUBT ALASKA PULP CAN DO THAT AND THEY HAILED THE FOREST SERVICE MOVE IT'S A GREAT DAY FOR THE TONGASS AND THE BEGINNING OF THE END FOR A LUNATIC POLICY SAID TOM CASSIDY AN OFFICIAL WITH AMERICAN RIVERS AN ENVIRONMENTAL GROUP WE NEED TO RETURN LOGGING IN THE TONGASS TO SUSTAINABLE LEVELS THE FOREST SERVICE'S MOVE MARKS A CHANGE OF COURSE FOR THE AGENCY WHICH HAD LONG RESISTED CALLS TO REVIEW THE TONGASS CONTRACTS ENVIRONMENTALISTS CREDITED THE CLINTON ADMINISTRATION AND IN PARTICULAR JACK WARD THOMAS A VETERAN WILDLIFE BIOLOGIST AND SPOTTEDOWL EXPERT WHO RECENTLY WAS NAMED TO HEAD THE AGENCY MR THOMAS PRESENTLY IS REVIEWING A BIG SALE OF TONGASS TIMBER TO KETCHIKAN PULP ON REMOTE CROWN PRINCE WILLIAM ISLAND AFTER A FOREST SERVICE SCIENTIST INVOLVED IN THE SALE FILED A WHISTLEBLOWER COMPLAINT ALLEGING THAT THE SALE IGNORES SCIENTIFIC EVIDENCE THAT IT WILL SEVERELY DAMAGE WILDLIFE 9401170074 940117 LETTERS TO THE EDITOR THE HARMONY OF NATURAL LAW IN HER DEC 15 LETTER RESPONDING TO MY DEC 6 EDITORIALPAGE PIECE A SCOPES TRIAL FOR THE '90S EUGENIE SCOTT CLAIMS THAT PROF DEAN KENYON AND I MISUNDERSTAND THE NATURE OF SCIENCE WHAT SHE MEANS OF COURSE IS THAT WE UNDERSTAND IT AND ITS CURRENT ARBITRARY PROHIBITIONS ALL TOO WELL THE KENYON CASE UNDERSCORES A FACT THAT DR SCOTT AND OTHERS IN THE FULLTIME EVOLUTION LOBBY WOULD PREFER NOT TO FACE HIGHLY QUALIFIED COLLEAGUES NOW CONTEST HER RIGIDLY MATERIALISTIC VIEW OF SCIENCE INSTEAD OF RESPONDING TO THIS CHALLENGE DR SCOTT SIMPLY REASSERTS HER METHODOLOGICAL CREDO ALL SCIENTIFIC EXPLANATIONS MUST BE MATERIALISTIC AS IF THAT SHOULD SETTLE THE MATTER YET QUESTIONS OF APPROPRIATE METHOD MUST BE DEBATED EVERY BIT AS MUCH AS COMPETING THEORIES ORIGINOFLIFE SCIENTISTS MUST NOW DECIDE WHETHER THEORISTS ARE FREE TO FOLLOW EVIDENCE WHEREVER IT MIGHT LEAD OR WHETHER THEY MAY CONSIDER ONLY CERTAIN KINDS OF EXPLANATIONS AS DR SCOTT INSISTS THIS DEBATE WILL NOT GO AWAY WITH RECENT DEVELOPMENTS IN PROBABILITY AND COMPLEXITY THEORY THE DETECTION OF INTELLIGENT DESIGN HAS ALREADY ENTERED SCIENCE PROPER NASA'S 100 MILLION SEARCH FOR EXTRATERRESTRIAL INTELLIGENCE SETI IS BASED UPON THE ABILITY TO DETECT THE STATISTICAL AND MATHEMATICAL SIGNATURE OF INTELLIGENTLY ENCODED MESSAGES TO PROF KENYON THE PRESENCE OF BIOCHEMICAL MESSAGES AND A CORRESPONDING MOLECULAR GRAMMAR IN THE CELL STRONGLY SUGGEST A PRIOR INTELLIGENT DESIGN HE MAY BE WRONG OR HE MAY BE RIGHT WHAT IS CERTAIN IS THAT HIS ARGUMENT IS BASED NEITHER ON IGNORANCE NOR RELIGIOUS AUTHORITY INSTEAD HE HAS MADE AN INFERENCE FROM BIOLOGICAL DATA INFORMED BY A SOPHISTICATED CONSIDERATION OF THE INFORMATIONAL SCIENCES IT NO DOUBT SERVES THE PURPOSES OF DR SCOTT AND DR HAFERNICK AT SFSU TO PORTRAY PROF KENYON AS A RELIGIOUS FUNDAMENTALIST UNWILLING TO REVISE DOGMA IN THE FACE OF NEW EVIDENCE BY NOW IT MUST BE CLEAR THAT IT IS THEIR FUNDAMENTALISM NOT PROF KENYON'S THAT IS ON TRIAL DR SCOTT MENTIONS THAT THEORETICIANS RELY ON MATERIALIST EXPLANATIONS THEY ARE DOING SCIENCE HER CASE AGAINST PROF KENYON IF PUT INTO SYLLOGISTIC FORM GOES LIKE THIS WHAT THEN DO THESE GUYS DO WHO TELL US THAT MATTER IS ENERGY DO THESE GUYS A EINSTEIN & CO PAVE THE WAY FOR MATERIALIST EXPLANATIONS OR DO THEY LEAVE BEHIND MATERIALIST EXPLANATIONS AS IF THEY WERE 19THCENTURY FOSSILS THOMAS JUKES IN HIS LETTER TO THE EDITOR WRITES THAT DR KENYON'S ARGUMENTS FOR INTELLIGENT DESIGN PRESUPPOSE THE EXISTENCE OF A CREATOR AND ARE THEREFORE RELIGIOUSLY BIASED THIS SOUNDS GOOD BUT IT DOESN'T DO JUSTICE TO PROF KENYON'S EXPERIENCE DR KENYON MR JUKES CONCEDES WAS ONCE AN ACKNOWLEDGED EXPERT ON EVOLUTIONARY THEORY AND A WORLD CLASS SCIENTIST BUT THESE ENCOMIUMS ARE LONG OUT OF DATE FOR ABOUT 16 YEARS AGO KENYON BECAME PREOCCUPIED WITH RELIGIOUS CONCEPTS OF BIOLOGY INTELLIGENT DESIGN IT IS CLEAR THAT DR KENYON COULD NOT HAVE EARNED HIS PRIOR REPUTATION WITH THIS CROWD HAD HE NOT PRESUPPOSED A MATERIALIST EXPLANATION NOTE THE CHRONOLOGY DR KENYON'S MATERIALIST PRESUPPOSITIONS ANTEDATED HIS SUDDEN SPONTANEOUSLY GENERATED PREOCCUPATION WITH INTELLIGENT DESIGN THIS SUGGESTS THAT DR KENYON DID NOT COME TO RELIGIOUS CONCEPTS BY WAY OF RELIGIOUS PRESUPPOSITIONS HE CAME TO INTELLIGENT DESIGN BY EXAMINING HIS MATERIALIST BIAS WHILE DOING SCIENCE IN A PIECE ENTITLED THE RELIGIOUS SPIRIT OF SCIENCE ALBERT EINSTEIN WROTE THAT THE SCIENTIST'S RELIGIOUS FEELING TAKES THE FORM OF A RAPTUROUS AMAZEMENT AT THE HARMONY OF NATURAL LAW WHICH REVEALS AN INTELLIGENCE OF SUCH SUPERIORITY THAT COMPARED WITH IT ALL THE SYSTEMATIC THINKING AND ACTING OF HUMAN BEINGS IS AN UTTERLY INSIGNIFICANT REFLECTION INCLUDED IN DR SCOTT'S CRITICISM OF PROF KENYON IS ONE OF HIS BOOKS OF PANDAS AND PEOPLE DR SCOTT SAYS PROF KENYON CLAIMS IN PANDAS' THAT TWO COMPLETELY HYBRID SIC INDIVIDUALS COULD PRODUCE OFFSPRING EXHIBITING THE COMPLETE RANGE OF POSSIBLE SKIN COLORS' A STATEMENT BREATHTAKINGLY IGNORANT OF GENETICS THE BOOK'S STATEMENT IS CORRECT AND NO MORE CONTROVERSIAL THAN SAYING TWO MUTTS COULD HAVE LIGHTFURRED DARKFURRED AND SPOTTED PUPPIES DR SCOTT FURTHER CHARGES THAT THE STATEMENT EXPLAINS FOR THE READER HOW THE GREAT RANGE OF HUMAN SKIN COLORS COULD ARISE FROM NOAH AND HIS FAMILY THIS ASSERTION IS FALSE THE BOOK HAS NOTHING TO SAY ABOUT NOAH HIS FLOOD OR ANY OTHER BIBLICAL MATTER 9401170073 940117 WHO'S NEWS XRITE INC XRITE INC GRANDVILLE MICH BRUCE JORGENSEN 50 YEARS OLD FORMERLY DIRECTORPOLYOLEFINS SALES AND MARKETING WITH EXXON CORP IN HONG KONG WAS NAMED VICE PRESIDENT OF SALES AND MARKETING AT THIS MANUFACTURER OF COLOR MEASUREMENT INSTRUMENTS 9401170072 940117 WHO'S NEWS COOPERS & LYBRAND SAYS FREEDMAN TO RETIRE AS CHAIRMAN IN LATE OCTOBER BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BIG SIX ACCOUNTING FIRM COOPERS & LYBRAND SAID EUGENE M FREEDMAN WILL RETIRE AS CHAIRMAN TOWARD THE END OF THE YEAR THERE HAD BEEN SPECULATION THAT MR FREEDMAN 61 YEARS OLD WOULD SEEK A VOTE TO CHANGE THE FIRM'S BYLAWS REGARDING RETIREMENT AGE THEREBY ENABLING HIM TO RUN FOR A SECOND THREEYEAR TERM WHEN HIS CURRENT TERM ENDS IN THE FALL MR FREEDMAN SAID HE HAD CIRCULATED A CONFIDENTIAL POLL AMONG THE FIRM'S 1250 PARTNERS AND HAD RECEIVED VERY SUBSTANTIAL BUT NOT OVERWHELMING SUPPORT FOR A POSSIBLE REELECTION BID MR FREEDMAN WILL RETIRE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE US UNIT ON SEPT 30 AND AS CHAIRMAN OF THE PARENT COMPANY IN LATE OCTOBER THE FOUR PARTNERS WHO RAN AGAINST MR FREEDMAN THREE YEARS AGO ARE SAID TO BE LEADING CONTENDERS TO SUCCEED HIM TWO VICE CHAIRMEN JOHN ROBERTS 48 AND STEPHEN MCKESSY 56 ARE CONSIDERED BY SOME TO BE THE FAVORITES ANOTHER VICE CHAIRMAN WILLIAM O'BRIEN 49 AND VINCENT O'REILLY CHIEF OPERATING OFFICER 56 ALSO ARE LIKELY TO BE IN THE RUNNING MR FREEDMAN IS CREDITED WITH ATTRACTING A LOT OF BUSINESS FOR COOPERS & LYBRAND AS WELL STEERING IT TOWARD MORE PROFITABLE BUSINESS OPPORTUNITES FOR INSTANCE HE URGED THAT THE FIRM ENTER THE BUSINESS OF PROVIDING OUTSOURCING SERVICES FOR INTERNAL AUDITS AND TAXATION FOR CORPORATIONS HE ALSO STARTED A 10 MILLION ADVERTISING AND PROMOTIONAL CAMPAIGN AND HELPED REDEFINE OUR LINES OF BUSINESS ONE PARTNER SAID FOR THE YEAR ENDED SEPT 30 COOPERS & LYBRAND HAD WORLDWIDE REVENUE OF 522 BILLION MR FREEDMAN HAD A REPUTATION FOR PUSHING EMPLOYEES HARD TO LURE NEW CLIENTS GENE IS ENTREPRENEURIAL ONE PARTNER SAID SOME PARTNERS HAD A FEAR OF CHANGE AND WONDERED ABOUT THE CHALLENGES MR FREEDMAN BROUGHT TO THE FIRM PEOPLE FAMILIAR WITH THE SITUATION SUGGESTED THAT MR FREEEDMAN FAILED TO RECEIVE UNANIMOUS SUPPORT FOR A REELECTION EFFORT BECAUSE SOME PARTNERS WERE RELUCTANT TO CHANGE THE FIRM'S LONGSTANDING BYLAWS COOPERS & LYBRAND'S PARTNERSHIP AGREEMENT REQUIRES THAT PARTNERS RETIRE FROM THE FIRM AT THE END OF THE FISCAL YEAR IN WHICH THEY TURN 62 MR FREEDMAN SAID HE RESPECTS THE OPPOSITION OF SOME PARTNERS TO NOT CHANGE THE BYLAWS WHILE NOTING THAT HE PLANNED TO PURSUE OTHER BUSINESS OPPORTUNITIES HE WAS ALSO UPBEAT ABOUT COOPERS & LYBRAND'S PROSPECTS THE FIRM IS ON A ROLL HE SAID IT'S LEANER WE'VE BROUGHT IN NEW WORK AND IT'S INCREASINGLY PROFITABLE HE SAID THE FIRM WILL NAME A NEW CHAIRMAN IN MAY OR JUNE 9401170070 940117 LUFTHANSA HALVES OPERATING LOSS FRANKFURT DEUTSCHE LUFTHANSA THE STATECONTROLLED GERMAN AIRLINE ACHIEVED ITS 1993 GOAL OF HALVING ITS 1992 OPERATING LOSS JUERGEN WEBER CHAIRMAN OF THE AIRLINE'S MANAGEMENT BOARD SAID AT A CONFERENCE IN BONN THAT THE GOAL HAS BEEN REACHED AND POSSIBLY EXCEEDED HE WASN'T MORE SPECIFIC LUFTHANSA'S 1992 OPERATING LOSS TOPPED ONE BILLION MARKS 5713 MILLION THE COMPANY'S 1994 GOAL IS TO BREAK EVEN MR WEBER SAID 9401170069 940117 ANC PROPOSES HELP FOR VICTIMS OF APARTHEID LIKELY VICTOR IN APRIL VOTE CALLS FOR STATE TO TAKE LEAD ROLE IN ECONOMY JOHANNESBURG REUTER NELSON MANDELA'S AFRICAN NATIONAL CONGRESS WITH AN EYE ON SOUTH AFRICA'S FIRST FREE ELECTIONS IN APRIL UNVEILED FARREACHING PROPOSALS AIMED AT HELPING THE VICTIMS OF APARTHEID AN ELECTION VICTORY IS ONLY A FIRST STEP DECLARED THE ANC WHICH IS WIDELY EXPECTED TO DOMINATE THE GOVERNMENT THAT WILL TAKE OFFICE AFTER THE ELECTIONS SCHEDULED FOR APRIL 27 NO POLITICAL DEMOCRACY CAN SURVIVE AND FLOURISH IF THE MASS OF OUR PEOPLE REMAIN IN POVERTY WITHOUT LAND WITHOUT TANGIBLE PROSPECTS FOR A BETTER LIFE IT SAID IN A DRAFT OF ITS RECONSTRUCTION AND DEVELOPMENT PROGRAM THE PROPOSALS HAVE CAUSED CONCERN AMONG INVESTORS THAT THEY COULD LEAD TO NATIONALIZATION OF SOME INDUSTRIES IN A DRAFT DOCUMENT RELEASED LAST WEEK THE ANC CALLED FOR REVAMPING THE MINING INDUSTRY TO ENSURE ASSETS ARE SHARED BY ALL AMONG OTHER THINGS THE DOCUMENT SUGGESTS MOVING AWAY FROM PRIVATE MINE OWNERSHIP BY INSTITUTING A TAX ON MINERAL RIGHTS AND EXPROPRIATING MINES WHOSE OWNERS ARE WILLING WITHOUT CITING SPECIFIC INDUSTRIES THE ANC ON FRIDAY RESERVED THE RIGHT TO EXPAND THE PUBLIC SECTOR IN STRATEGIC AREAS THROUGH STATE TAKEOVER OF INDUSTRY NEW VENTURES OR JOINT VENTURES WITH THE PRIVATE SECTOR ANC ECONOMIC CHIEF TREVOR MANUEL DECLINED TO ELABORATE ON POSSIBLE NATIONALIZATIONS STRESSING THAT THE DOCUMENT WAS A FRAMEWORK ON WHICH OTHER KEY PLAYERS WOULD BE CONSULTED THE STATE COULD IN SOME CIRCUMSTANCES ENLARGE OR REDUCE HE TOLD REPORTERS THERE IS NO IDELOGICAL WEDDING TO NATIONALIZATIONS THE ANC HAS DENIED THAT IT PLANS TO NATIONALIZE PROPERTY CALLING INSTEAD FOR A SPECIAL COURT THAT WOULD SETTLE OWNERSHIP CLAIMS AND SET PRICES FOR WHITEOWNED LAND SLATED FOR REDISTRIBUTION THE PROGRAM FAVORS A MIXED ECONOMY IN WHICH THE GOVERNMENT WOULD PLAY A LEADING BUT FLEXIBLE ROLE IN WHAT IT CALLED A BALANCE BETWEEN STATE PRIVATESECTOR AND CIVIC INTERESTS THE DOCUMENT OUTLINES PUBLICWORKS PROJECTS TO CREATE JOBS BUILD MORE THAN ONE MILLION HOUSES ELECTRIFY 25 MILLION HOMES AND EXTEND AFFORDABLE HEALTH CARE CLEAN WATER AND SANITATION TO ALL IT CALLED THE PROGRAMS ACHIEVABLE OVER FIVE YEARS IT ALSO SAID ITS POLICIES WOULD SEEK TO FOSTER FOREIGN INVESTMENT IN SOUTH AFRICA STABLE CONSISTENT AND PREDICTABLE POLICIES AS WELL AS A DYNAMIC ECONOMY SHOULD CREATE A CLIMATE CONDUCIVE TO FOREIGN INVESTMENT THE DOCUMENT SAID THE DOCUMENT SAID SOUTH AFRICA'S MINING INDUSTRY THE BACKBONE OF THE ECONOMY AND CURRENTLY DOMINATED BY SIX CONGLOMERATES SHOULD BE REFORMED THROUGH APPROPRIATE ANTITRUST LEGISLATION THE PLAN WILL BE SUBMITTED TO A POLICYMAKING CONFERENCE ON JAN 22 AND 23 OF THE ANC AND ITS ALLIED SOUTH AFRICAN COMMUNIST PARTY AND CONFEDERATION OF SOUTH AFRICAN TRADE UNIONS THE MEASURES WOULD INCLUDE AFFIRMATIVE ACTION TO ADDRESS GAPS IN WEALTH OPPORTUNITIES AND SKILLS IN AN ECONOMY THAT MR MANUEL SAID WAS RAVAGED BY APARTHEID HE DID NOT RULE OUT QUOTAS MR MANUEL DECLINED TO ESTIMATE TOTAL FUNDING NEEDS FOR RECONSTRUCTION WHICH THE DEVELOPMENT BANK OF SOUTHERN AFRICA HAS SAID COULD COST 25 BILLION OVER 10 YEARS SEPARATELY IN PRETORIA RIGHTWING LEADERS AGREED FRIDAY TO RESUME NEGOTIATIONS WITH THE GOVERNMENT AND ANC ON THE TRANSITION TO A POSTAPARTHEID DEMOCRACY 9401170068 940117 PITTSTON COMPLETES ACQUISITION STAMFORD CONN PITTSTON CO SAID IT COMPLETED THE ACQUISITION OF MOST OF THE COALMINING ASSETS AND COALSALES CONTRACTS OF ADDINGTON RESOURCES INC WHEN IT REACHED A DEFINITIVE AGREEMENT IN SEPTEMBER PITTSTON SAID THE 157 MILLION ACQUISITION WOULD INCREASE ITS PITTSTON MINERALS GROUP'S TOTAL COAL PRODUCTION 50 PITTSTON SAID IT INTENDS TO ISSUE CONVERTIBLE PREFERRED STOCK TO HELP PAY FOR THE ACQUISITION PITTSTON HAS BUSINESSES IN COAL GOLD MINING SECURITY SERVICES AND AIR FREIGHT ADDINGTON RESOURCES IS BASED IN ASHLAND KY 9401170067 940117 POLITICS & POLICY LAWYERS ARGUING CASES BEFORE SUPREME COURT FIND EXPERIENCE CAN BE LESS THAN APPEALING BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR MANY ATTORNEYS IT IS THE ULTIMATE EXPERIENCE IN LEGAL ADVOCACY ARGUING A CASE BEFORE THE US SUPREME COURT YOU WALK INTO THE BUILDING AND YOU SEE THE COURTROOM IS FOUR MILES HIGH SAYS PHILADELPHIA LAWYER STEPHEN LACHEEN IT'S THE BIGS IT'S THE TOPS AND IT TAKES YOUR BREATH AWAY BUT WITH NINE JUSTICES IN BLACK ROBES LOOMING DOWN FROM A MAHOGANY BENCH JUST A FEW FEET FROM THE LAWYERS' LECTERN THE ENCOUNTERS CAN ALSO BE BRUISING ONLY A MINUTE INTO HIS ARGUMENT ALFREDO PARRISH OF DES MOINES IOWA IS ABRUPTLY TOLD BY THE CHIEF JUSTICE OF THE US THAT HE HAS FLATLY MISINTERPRETED A MAJOR PRECEDENT IT FEELS MR PARRISH SAYS LIKE SOMEONE PUNCHED ME DIRECTLY IN THE FACE THE HIGH COURT'S ORAL ARGUMENTS THERE WILL BE ABOUT 100 OF THEM THIS TERM ARE ITS ONLY SUBSTANTIAL PUBLIC ACTIVITY IN A SURPRISING NUMBER OF CASES THE ARGUMENTS ARE A BUST ONE EXPLANATION MAY BE A CHANGE IN WHO IS DOING THE ARGUING IN SOME PERIODS IN THE PAST SMALL ELITE GROUPS OF LAWYERS DOMINATED SUPREME COURT ADVOCACY BUT THESE DAYS IF LAWYERS PERSUADE THE HIGHEST COURT IN THE LAND TO HEAR THEIR CASE MANY CAN'T RESIST THE ONCEINALIFETIME CHANCE TO ARGUE BEFORE THE JUSTICES THEMSELVES THE RESULT SAYS HARVARD LAW PROFESSOR CHARLES FRIED IS GREATER VARIABILITY IN THE QUALITY OF ARGUMENT THAN IS MERITED BY THE IMPORTANCE OF THE HIGH COURT'S BUSINESS THAT'S LAWYER TALK FOR THE ARGUMENTS OFTEN AREN'T AS GOOD AS THEY USED TO BE PRIVATELY JUSTICES ANTONIN SCALIA AND CLARENCE THOMAS HAVE TOLD FRIENDS THEY NOTICED A DROP IN THE QUALITY OF ADVOCACY WHEN THEY MOVED TO THE TOP COURT FROM THE FEDERAL APPEALS COURT IN WASHINGTON THE MOST COMMON REASON ATTORNEYS RUN INTO TROUBLE IS THAT THEY ARRIVE SEEMINGLY OBLIVIOUS TO WHAT THE JUSTICES EXPECT FROM THEM MANY NEWCOMERS GET HERE THINKING THE COURT WORRIES ONLY ABOUT FAIRNESS SAYS SUPREME COURT CLERK WILLIAM SUTER BUT THIS ISN'T A BIG JUDGE WAPNER'S PEOPLE'S COURT' YOU HAVE TO ARGUE THE SPECIFIC JURISPRUDENTIAL QUESTION THE JUSTICES AGREED TO DECIDE LAWYER JOHN BISBEE DISCOVERS THIS WHEN HE INSISTS ON COMPLAINING ABOUT HOW AN ILLINOIS HOSPITAL WRONGLY FIRED HIS CLIENT A NURSE JUST BECAUSE SHE COMPLAINED TO COLLEAGUES ABOUT MANAGEMENT UNFORTUNATELY FOR MR BISBEE THE JUSTICES HAD ASKED HIM AND OPPOSING COUNSEL TO DISCUSS THE CASE'S FIRST AMENDMENT IMPLICATIONS AMONG OTHER THORNY LEGAL QUESTIONS WE DIDN'T TAKE THIS CASE TO DETERMINE WHO SAID WHAT TO WHOM IN THE CAFETERIA LECTURES JUSTICE ANTHONY KENNEDY CARL LUNDBERG THE CHIEF COUNSEL FOR SOUTH CAROLINA'S PAROLE BOARD GETS EVEN TOUGHER TREATMENT HE HAS SHOWN UP FOR AN ORAL ARGUMENT WITH THE SHEEPISH ADMISSION THAT HE HAD NEGLECTED UNTIL THE DAY BEFORE TO INFORM THE JUSTICES OF A LEGISLATIVE CHANGE THAT POSSIBLY MADE HIS APPEAL MOOT YOU COME IN HERE WITH A FOURANDAHALFMONTHOLD STATUTE AND PRESENT IT TO US THE EVE OF ARGUMENT SNAPS JUSTICE HARRY BLACKMUN YOU SURELY DON'T PRACTICE LAW THAT WAY IN SOUTH CAROLINA DO YOU NO YOUR HONOR THE LAWYER REPLIES APOLOGIZING THAT HE SIMPLY HADN'T NOTICED THE AMENDMENT EARLIER THE JUSTICES GO THROUGH THE MOTIONS OF HEARING MR LUNDBERG'S APPEAL THEN DISMISS IT A FEW WEEKS LATER WITHOUT EVEN WRITING AN OPINION JUSTICE SANDRA DAY O'CONNOR ISN'T AMUSED SHE NOTES TARTLY THAT SINCE THE SUPREME COURT ITSELF MIGHT LIKE TO ANALYZE THE CASE PERHAPS MR SENECA OUGHT TO OFFER SOME THOUGHTS ON THE LEGAL MERITS BUT DESPITE FURTHER PRODDING FROM OTHER JUSTICES HE RESISTS THE JUSTICES HE CONCEDES AFTERWARD WEREN'T HAPPY ABOUT HIS APPROACH THEY BEAT UP ON ME SOME JUSTICES HARDLY EVER ASK QUESTIONS AT ORAL HEARINGS JUSTICE BLACKMUN WORRIED IN A RECENT INTERVIEW ON ABCTV'S NIGHTLINE THAT PEOPLE PERCEIVE HIM AS JUST SITTING THERE LIKE A BUMP ON A LOG BUT HE QUICKLY ADDED AT LEAST I'M A LITTLE MORE TALKATIVE THAN JUSTICE THOMAS WHO ALMOST NEVER SAYS A WORD BACK AND FORTH GOES THE EXCHANGE ON THE BENCH UNTIL THE RED LIGHT ON THE LECTERN FLASHES ON SIGNALING THAT AN ATTORNEY'S 30 MINUTES ARE UP THANK YOU MS FOSTER CHIEF JUSTICE WILLIAM REHNQUIST INTONES THEN HE ADDS I THINK YOU DID VERY WELL IN THE FOUR MINUTES THAT THE COURT ALLOWED YOU MS FOSTER LEAVES A BIT PUZZLED SINCE THE COURT ITSELF APPOINTED HER TO ARGUE THE CASE THEY WANTED ME TO COME TO WASHINGTON SHE SAYS BUT THEN THEY DIDN'T SEEM TO LISTEN VERY MUCH ORAL ARGUMENTS DON'T NECESSARILY DETERMINE RESULTS OF COURSE SOME LAWYERS EVEN SAY THAT THE ARGUMENTS DON'T MATTER AT ALL BECAUSE THE JUSTICES HAVE ALREADY MADE UP THEIR MINDS BASED ON WRITTEN BRIEFS THAT'S WRONG ACCORDING TO PRIVATE COMMENTS BY SEVERAL JUSTICES CHIEF JUSTICE REHNQUIST HAS WRITTEN THAT IN A SIGNIFICANT MINORITY OF CASES HE LEAVES ORAL ARGUMENTS FEELING DIFFERENT ABOUT THE CASE IF RARELY CHANGING HIS VIEWS COMPLETELY MR SUTER THE COURT CLERK A FEW YEARS BACK BEGAN OFFERING GROUP TUTORIALS ON BASIC ETIQUETTE FOR THE UNINITIATED AMONG HIS TIPS WHEN THE JUSTICES ASK FOR A YES' OR NO' ANSWER GIVE IT TO THEM YET MANY LAWYERS ARRIVE UNPREPARED EVEN FOR PREDICTABLE QUERIES ONE OF CHIEF JUSTICE REHNQUIST'S FAVORITES IS WHAT AUTHORITY DO YOU HAVE FOR THAT PROPOSITION COUNSEL OFTEN COUNSEL HAS NONE ONE CONSOLATION FOR THE HARRIED ADVOCATE IS THAT ROUGH TREATMENT AT ORAL ARGUMENTS DOESN'T ALWAYS FORESHADOW DEFEAT MR LACHEEN THE LAWYER FROM PHILADELPHIA TAKES A LOT OF FLAK WHEN HE PASSIONATELY INSISTS THAT EVEN THOUGH HIS CLIENTS AN OREGON COUPLE CONVICTED OF MONEYLAUNDERING EVADED FEDERAL CURRENCYREPORTING REQUIREMENTS THEY DID SO WITH NONCRIMINAL MOTIVES SEEMINGLY MOST SKEPTICAL IS JUSTICE SCALIA WHO NOTES THAT CONGRESS CAN PASS CRIMINAL LAWS WITHOUT REQUIRING A BAD MOTIVE ESPECIALLY IF IN THE VAST MAJORITY OF CASES IT'S GOING TO BE PICKING UP PEOPLE WHO DO HAVE SOME NEFARIOUS MOTIVE THUNDERING WITH INDIGNATION MR LACHEEN DECLARES I DON'T THINK THAT WE'VE GOTTEN TO THE POINT WHERE WE DON'T MIND CONVICTING INNOCENT PEOPLE BECAUSE WE'RE GOING TO GET SOME GUILTY PEOPLE WITH THE SAME ACT WHAT INNOCENT JUSTICE SCALIA FIRES BACK THEY VIOLATED THE LAW THEY DIDN'T KNOWINGLY VIOLATE THE LAW THE ATTORNEY INSISTS LAST MONDAY THE COURT RULED 54 IN FAVOR OF MR LACHEEN'S CLIENTS BECAUSE THEY HADN'T BEEN FOUND TO HAVE KNOWINGLY VIOLATED THE LAW JUSTICE SCALIA JOINED THE MAJORITY OPINION WRITTEN BY JUSTICE GINSBURG 9401170066 940117 MOVIES PHILADELPHIA' IS NO 1 FILM OVER WEEKEND BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WHILE MOST MAJORSTUDIO EXECUTIVES HAVE AVOIDED PUTTING THE SUBJECT OF AIDS ON THE BIG SCREEN CONVINCED IT WOULD AMOUNT TO BOXOFFICE POISON TRISTAR PICTURES TOOK THE RISK AND STELLAR RETURNS ARE POURING IN PHILADELPHIA A DRAMA IN WHICH TOM HANKS PLAYS A GAY LAWYER WHO IS FIRED BECAUSE HE HAS AIDS WAS THE NO 1 MOVIE AT THE NATION'S THEATERS OVER THE WEEKEND CHARTING AN ESTIMATED THREEDAY GROSS OF 121 MILLION EVERYONE INVOLVED WITH PHILADELPHIA' WANTED VERY MUCH TO MAKE A FILM THAT WOULD PLAY IN EVERY CITY AND EVERY TOWN ACROSS AMERICA SAYS MARC PLATT PRESIDENT OF TRISTAR A UNIT OF SONY CORP'S SONY PICTURES ENTERTAINMENT IT SEEMS AS THOUGH THAT GOAL HAS BEEN ACHIEVED THE MOVIE RECEIVED MIXED CRITICAL REVIEWS EVEN IN THE GAY COMMUNITY WHICH HAS CRITICIZED HOLLYWOOD FOR FAILING TO DO A FILM ON AIDS SOME HAVE ATTACKED PHILADELPHIA AS TOO TIMID THE FILM HAD BEEN PLAYING AT JUST FOUR THEATERS IN NEW YORK LOS ANGELES AND TORONTO SINCE DEC 22 IN A DISTRIBUTION STRATEGY CALLED PLATFORMING STUDIOS TYPICALLY PLATFORM TOUGHSELL FILMS BY OPENING THEM IN A HANDFUL OF BIG CITIES THEY HOPE THE BUZZ CREATED IN THE BIGGER MARKETS THEN TRAVELS TO THE REST OF THE COUNTRY AND BUILDS ANTICIPATION IN THIS CASE IT WORKED AND EVEN FRIGID TEMPERATURES IN MUCH OF THE COUNTRY DIDN'T DAMP TICKET SALES PHILADELPHIA JUMPED TO 1245 THEATERS ON FRIDAY AND POSTED AN IMPRESSIVE PERSCREEN AVERAGE OF 9735 TRISTAR SAID THE BOXOFFICE TAKE WAS THE LARGESTEVER JANUARY MOVIE OPENING TOPPING BORN ON THE FOURTH OF JULY THAT FILM HAD OPENED IN A FEW THEATERS AT THE END OF 1988 BEFORE EXPANDING SCREENS EARLY IN 1989 ANOTHER TOUGHSELL MOVIE STEVEN SPIELBERG'S HOLOCAUST EPIC SCHINDLER'S LIST ALSO IS FINDING SUCCESS WITH A PLATFORM RELEASE BUT UNIVERSAL PICTURES IS TAKING A SLOWER APPROACH SCHINDLER'S LIST OPENED DEC 13 IN 25 THEATERS EXPANDED TO 172 ON JAN 7 AND ON FRIDAY WIDENED TO 253 THEATERS SCHINDLER'S LIST WAS THE NO 10 MOVIE AT THE BOX OFFICE THIS PAST WEEKEND SELLING ABOUT 3 MILLION IN TICKETS OR A PERSCREEN AVERAGE OF 11800 THAT'S A VERY HEALTHY GROSS CONSIDERING THE SMALL NUMBER OF THEATERS PLAYING IT THE PICTURE'S LENGTH WELL OVER THREE HOURS ALSO MEANS THAT MOST THEATERS CAN SCHEDULE ONLY THREE SHOWINGS A DAY FRED MOUND PRESIDENT OF DISTRIBUTION AT UNIVERSAL SAYS HE DOESN'T KNOW HOW MANY THEATERS WILL PLAY SCHINDLER'S LIST AT ITS WIDEST RELEASE HE SAYS THE PLAN IS TO ADD 75 THEATERS FRIDAY AND PERHAPS BE UP TO 500 OR 600 THEATERS BY FEB 4 THE BIG DAY FOR SCHINDLER'S LIST WILL BE FEB 9 THE DAY ACADEMY AWARD NOMINATIONS ARE ANNOUNCED THE FILM IS EXPECTED TO GARNER MANY NOMINATIONS AND THE STUDIO LIKELY WILL WIDEN ITS RELEASE SOON AFTER BUT UNIVERSAL HAS A MAJOR TECHNICAL CONSTRAINT WHERE STUDIOS USUALLY CAN GET AS MANY AS 200 TO 300 PRINTS OF A FILM MADE IN A SINGLE DAY UNIVERSAL ONLY HAS BEEN ABLE TO GET EIGHT TO 10 PRINTS OF SCHINDLER'S LIST A DAY THE REASON THE MOVIE WAS SHOT IN BLACK AND WHITE BUT THERE ARE BRIEF SCENES SHOT IN COLOR WHICH MUST BE INSERTED BY HAND INTO EACH PRINT UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC IS TAKING ANOTHER PICTURE ON A SLOW ROUTE IN THE NAME OF THE FATHER STARRING DANIEL DAYLEWIS AND EMMA THOMPSON THE MOVIE ABOUT A FATHER AND SON WRONGLY CONVICTED OF AN IRISH REPUBLICAN ARMY BOMBING IS PLAYING AT 67 THEATERS AND HAD THE HIGHEST PERSCREEN AVERAGE OF ANY CURRENT FILM THIS PAST WEEKEND AT 12500 THESE WERE THE FIVE HIGHESTGROSSING MOVIES THIS PAST WEEKEND ACCORDING TO INDUSTRY ESTIMATES 9401170064 940117 PEPPERAND SALT THEY DWELL ON HOPES AND AIMS IT'S RETIREMENT AND AGING 9401170063 940117 WHO'S NEWS PNC'S GRONBACHER NAMED TO NEW POST PITTSBURGH PNC BANK CORP SAID FREDERICK J GRONBACHER 51 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF OPERATIONS AND DATA PROCESSING WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT AND DEPUTY MANAGER OF RETAIL BANKING AT THE BANK HOLDING COMPANY IN HIS NEW POST HE WILL BE RESPONSIBLE FOR CONSUMER CREDIT ELECTRONIC BANKING TELEPHONE BANKING SMALL BUSINESS PRIVATE BANKING INTEGRATION OF NEWLY ACQUIRED UNITS AND MASSACHUSETTS CO'S ACTIVITIES HE IS SUCCEEDED BY TIMOTHY G SHACK 43 WHO HAS BEEN A SENIOR VICE PRESIDENT OF DATA PROCESSING SINCE 1991 IN ADDITION RICHARD C GRACE 52 FORMERLY VICE PRESIDENT AND MANAGER OF PROGRAM DEVELOPMENT WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT CORPORATE HUMAN RESOURCES MR GRACE WILL BE RESPONSIBLE FOR COORDINATING HUMANRESOURCES ACTIVITIES THROUGHOUT THE COMPANY FOR PNC BANK'S MAJOR BUSINESSES WHICH INCLUDE RETAIL BANKING CORPORATE BANKING INVESTMENT MANAGEMENT AND TRUST SERVICES AND INVESTMENT BANKING 9401170062 940117 WHO'S NEWS ALUMINUM CO OF AMERICA ALUMINUM CO OF AMERICA PITTSBURGH MARINA V N WHITMAN 58 YEARS OLD DISTINGUISHED PROFESSOR OF BUSINESS ADMINISTRATION AND PUBLIC POLICY AT THE UNIVERSITY OF MICHIGAN WAS NAMED A DIRECTOR OF THIS ALUMINUM PRODUCER INCREASING THE BOARD'S SIZE TO 10 9401170061 940117 TECHNOLOGY MOBILE TELECOM FACES FIVE SHAREHOLDER SUITS OVER POTENTIAL LOSSES JACKSON MISS MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP IN THE WAKE OF RECENT DISCLOSURES REGARDING POSSIBLE OPERATING LOSSES IN 1994 SAID FIVE SHAREHOLDER SUITS HAVE BEEN FILED AGAINST THE COMPANY THE COMPLAINTS FILED IN US DISTRICT COURT HERE ALLEGE VIOLATIONS OF FEDERAL SECURITIES LAWS THE PLAINTIFFS ACCORDING TO MOBILE TELECOMMUNICATIONS ARE SEEKING TO HAVE THE PROCEEDINGS CERTIFIED AS CLASS ACTIONS ON JAN 5 THE TELECOMMUNICATIONS COMPANY SAID IT WILL REDUCE PRICING AT ITS SKYTEL CORP UNIT THE EFFECT OF REDUCED SKYTEL PROFIT TOGETHER WITH STARTUP LOSSES FROM INTERNATIONAL JOINT VENTURES ARE EXPECTED TO RESULT IN LOSSES FROM OPERATIONS IN 1994 NEWS OF THE POSSIBLE LOSSES HELPED PUSH DOWN THE COMPANY'S SHARE PRICE TO 1650 OFF 9625 ON THE DAY THE PLANS WERE ANNOUNCED IN TRADING ON THE NASDAQ STOCK MARKET FRIDAY MOBILE TELECOMMUNICATIONS CLOSED AT 17875 A SHARE DOWN 125 CENTS FRIDAY IN A STATEMENT THE COMPANY SAID IT BELIEVES IT HAS ALWAYS OBSERVED AND ACTED IN ACCORDANCE WITH ALL SECURITIES LAWS AND THAT THESE CLAIMS ARE UNFOUNDED AND WITHOUT MERIT THE COMPANY ADDED THAT IT INTENDS TO DEFEND AGAINST THESE LAWSUITS VIGOROUSLY MOBILE TELECOMMUNICATIONS ALSO SAID THAT WHILE IT WAS DISAPPOINTED WITH THE DROP IN ITS STOCK PRICE THE NEW STRATEGY IS DESIGNED TO POSITION THE COMPANY FOR FUTURE GROWTH 9401170060 940117 BROWNFORMAN CORP COMPLETES TENDER BID TO PURCHASE ITS STOCK LOUISVILLE KY BROWNFORMAN CORP SAID IT COMPLETED ITS DUTCHAUCTION TENDER OFFER TO PURCHASE CLASS A AND CLASS B COMMON STOCK BROWNFORMAN SAID IT ACCEPTED FOR PURCHASE ABOUT 911000 SHARES OF ITS CLASS A STOCK AT A PRICE OF 90 A SHARE THE COMPANY SAID THAT A PRELIMINARY COUNT FOR THE TENDER OFFER INDICATED THAT ABOUT 930000 SHARES OF CLASS A STOCK WERE TENDERED BEFORE THE OFFER'S EXPIRATION JAN 13 HOLDERS OF ODD LOTS OF SHARES TENDERED 2785 SHARES OF CLASS A STOCK ALL OF WHICH WERE ACCEPTED THE PRELIMINARY PRORATION FACTOR FOR ALL OTHER CLASS A SHARES TENDERED IS APPROXIMATELY 98 BROWNFORMAN ALSO SAID IT ACCEPTED FOR PURCHASE ABOUT 36 MILLION SHARES OF ITS CLASS B STOCK AT 89 A SHARE CONSISTING OF ALL CLASS B SHARES PROPERLY TENDERED AT OR BELOW 89 A SHARE BROWNFORMAN HAD OFFERED TO PURCHASE AS MUCH AS 700000 SHARES OF ITS CLASS A STOCK AND 35 MILLION SHARES OF ITS CLASS B STOCK THE COMPANY SAID IT IS EXERCISING ITS RIGHT TO INCREASE THE NUMBER OF SHARES THE COMPANY'S TOTAL INVESTMENT IN ACQUIRING THE SHARES WILL BE APPROXIMATELY 403 MILLION AND WILL BE FUNDED FROM AVAILABLE CASH AND SHORTTERM BORROWINGS 9401170059 940117 TECHNOLOGY MOTOROLA'S IRIDIUM IS SELLING 5 HOLDING TO INDIAN CONSORTIUM NEW DELHI INDIA'S FOREIGN INVESTMENT PROMOTION BOARD CLEARED THE ACQUISITION BY THE COUNTRY OF A 5 STAKE IN MOTOROLA INC'S IRIDIUM PROJECT WHICH PLANS TO CIRCLE THE GLOBE WITH SATELLITES FOR A WORLDWIDE CELLULARPHONE SYSTEM ONE OR TWO ROUTINE BUREAUCRATIC CLEARANCES REMAIN BEFORE THE INDIAN STAKE IS FULLY APPROVED AS PART OF THE TRANSACTION A CONSORTIUM OF INDIAN PUBLICSECTOR FINANCIAL INSTITUTIONS LED BY INDUSTRIAL DEVELOPMENT BANK OF INDIA WHICH WILL PUT UP THE 40 MILLION FOR THE STAKE WILL OBTAIN A SEAT ON THE IRIDIUM BOARD OTHERS IN THE INDIAN CONSORTIUM INCLUDE THE INFRASTRUCTURE LEASING AND FINANCIAL SERVICES AND THE EXPORTIMPORT BANK MOTOROLA ESTABLISHED IRIDIUM INC AN INTERNATIONAL GROUP THAT PLANS TO BUILD BY 1998 A 34 BILLION SATELLITE SYSTEM PROVIDING PHONE DATA FAX AND LOCATION SERVICES WORLDWIDE VIA SMALL HANDHELD RECEIVERS MOTOROLA HAS BEEN SELLING OFF EQUITY INTERESTS IN IRIDIUM AND NOW OWNS A MINORITY STAKE IT HAS SAID IT INTENDS TO REDUCE ITS STAKE TO ABOUT 15 9401170058 940117 INDIA'S UNIONS RESIST PLANS OF GOVERNMENT PUBLICSECTOR WORKERS FEAR THAT ECONOMIC CHANGE WILL MEAN LOSS OF JOBS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIA'S PUBLICSECTOR TRADE UNIONS WORRIED THAT THE COUNTRY'S ECONOMIC REFORM PROGRAM WILL LEAD TO JOB LOSSES AND PRIVATIZATION ARE BEGINNING TO FLEX THEIR MUSCLES BECAUSE THE GOVERNMENT IS FIRMLY COMMITTED TO ITS PROGRAM THE UNIONS AREN'T LIKELY TO DERAIL REFORM BUT THEY HAVE BEEN ABLE TO SLOW IT DOWN AND PROLONGED PROTESTS COULD FURTHER SET BACK LABOR LEGISLATION THAT WOULD GIVE COMPANIES MORE FLEXIBILITY TO SHED WORKERS THE UNIONS PROMISE A LONG STRUGGLE WE ARE DETERMINED TO AGITATE SAYS R RAMANATHAN THE BOMBAYBASED GENERAL SECRETARY OF THE AIR CORPORATION EMPLOYEES UNION WORKERS WENT ON SYMBOLIC STRIKES LAST MONTH IN SEVERAL KEY GOVERNMENTOWNED BUSINESSES PROTESTING MOVES TO OPEN THEM UP TO PRIVATE INVESTMENT AND COMPETITION ON DEC 31 MOST OF THE COUNTRY'S 450000 TELECOMMUNICATIONS WORKERS STAYED AWAY FROM WORK OBJECTING TO THE PROPOSED ENTRY OF PRIVATE INDIAN AND FOREIGN COMPANIES INTO BASIC TELECOM SERVICES SO FAR A GOVERNMENT PRESERVE MORE THAN HALF THE 22000 EMPLOYEES OF INDIAN AIRLINES THE STATEOWNED DOMESTIC AIRLINE STAYED AWAY FROM WORK DEC 17 THEY WERE PROTESTING A GOVERNMENT PLAN TO REPEAL THE 41YEAROLD STATE MONOPOLY ON DOMESTIC FLIGHTS A MONOPOLY THAT ALREADY HAS BEEN BREACHED IN RECENT YEARS AS PRIVATE CARRIERS HAVE EXPLOITED A LEGAL LOOPHOLE TO GRAB A FIFTH OF THE MARKET POSTAL SERVICES WERE DISRUPTED FOR FOUR DAYS IN EARLY DECEMBER AS THE DEPARTMENT'S 600000 WORKERS STRUCK FOR HIGHER WAGES AND PROTESTED MOVES TO SHIFT SOME PERIPHERAL SERVICES SUCH AS BULK MAIL TO THE PRIVATE SECTOR FEARFUL OF A LABOR BACKLASH SUPPORTED BY OPPOSITION PARTIES THE GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO HAS IN RECENT MONTHS SLOWED DOWN ON SOME OF THE MORE CONTROVERSIAL ASPECTS OF LIBERALIZATION LEGISLATION TO AMEND LABOR LAWS AND PERMIT EASIER CLOSURE OF FACTORIES AND BUSINESSES WAS PROMISED IN 1993 BUT THE RAO GOVERNMENT WAS WEAKENED BY THE COMMUNAL VIOLENCE AND POLITICAL TURMOIL THAT FOLLOWED THE DESTRUCTION OF A MOSQUE IN AYODHYA IN DECEMBER 1992 AND HAS YET TO INTRODUCE THE LEGISLATION IN PARLIAMENT MEANWHILE THE GOVERNMENT HAS PUT ON HOLD AN AMBITIOUS PROPOSAL FROM U S WEST INC TO SET UP A TELECOM NETWORK IN AN INDUSTRIAL AREA OF THE SOUTHERN STATE OF TAMIL NADU IN COMPETITION WITH THE STATEOWNED NETWORK ALSO DELAYED ARE DECISIONS ON SEVERAL SIMILAR TELECOM PROPOSALS AIMED AT OTHER REGIONS FOR MORE THAN A YEAR POLITICAL UNCERTAINTY HELD UP LEGISLATION THAT WOULD REPEAL A BAN ON PRIVATESECTOR AIRLINES AT PRESENT SOME PRIVATE CARRIERS SKIRT THE BAN BY OPERATING AS AIR TAXIS MAKING REGULAR FLIGHTS BUT REFRAINING FROM PUBLISHING SCHEDULES THE LEGISLATION WAS FINALLY BROUGHT TO PARLIAMENT LAST MONTH AND IS DUE TO BE DISCUSSED IN THE SESSION STARTING IN FEBRUARY THE ONLY GENUINE PRIVATIZATION BEING CONSIDERED BY THE RAO ADMINISTRATION THE SALE OF A DILAPIDATED STEEL PLANT TO MUKAND LTD HAS BEEN REFERRED TO A MULTIPARTY PARLIAMENTARY COMMITTEE THE COMMITTEE IS EXPECTED TO ENDORSE THE PROPOSAL UNION SPOKESMEN ARGUE THAT THE REFORMS EVENTUALLY WILL LEAD TO BROAD PRIVATIZATION WHICH THEY OPPOSE ON IDEOLOGICAL GROUNDS THE GOVERNMENT IS HANDING IT OVER TO THE PRIVATE SECTOR SAYS MK PANDHE GENERAL SECRETARY OF THE CENTRE OF INDIAN TRADE UNIONS A MARXIST ORGANIZATION THE SOLUTION LIES IN CHANGING THE PUBLIC SECTOR NOT DISMANTLING THE PUBLIC SECTOR THE GOVERNMENT'S STATED POLICIES HOWEVER FALL WELL SHORT OF FULL PRIVATIZATION WITH RARE EXCEPTIONS GOVERNMENT PLANS ARE LIMITED TO SELLING AS MUCH AS 49 OF THE EQUITY OF CERTAIN STATEOWNED FIRMS TO FINANCIAL INSTITUTIONS AND INDIVIDUAL INVESTORS THE GOVERNMENT ARGUES THAT SUCH SALES WOULD PUT PRESSURE ON PUBLICSECTOR MANAGEMENTS TO BE MORE EFFICIENT WHILE RETAINING GOVERNMENT CONTROL THE UNIONS SUPPORTED MAINLY BY SOCIALIST AND COMMUNIST LAWMAKERS AREN'T BUYING THAT THEY'RE MAKING A STAND AGAINST PLANS TO CONVERT GOVERNMENT TELECOM DEPARTMENTS INTO CORPORATIONS THE GOVERNMENT WANTS TO CREATE COMPANIES THAT COULD FINANCE BETTER TELECOM NETWORKS THROUGH SALES OF EQUITY AS VIDESH SANCHAR NIGAM LTD INDIA'S OVERSEAS TELECOM CONCERN IS PLANNING TO DO EARLY THIS YEAR WITH AN OFFERING OF GLOBAL DEPOSITARY RECEIPTS A TYPE OF SHARE GEARED FOR FOREIGNERS IF FOREIGN INVESTMENT COMES INTO THESE SHARES IT WON'T BE IN INDIA'S INTEREST BECAUSE THE FOREIGNERS WILL COME TO DOMINATE ARGUES BRIJESH UPADHYAYA A GENERAL SECRETARY OF THE BHARATIYA TELECOM EMPLOYEES FEDERATION A TRADE UNION RELATED TO THE OPPOSITION BHARATIYA JANATA PARTY WE'LL DEFINITELY OPPOSE THIS TO THE LAST EXTENT FOR THE SAME REASON UNIONS HAVE DENOUNCED RECOMMENDATIONS BY A GOVERNMENTAPPOINTED COMMITTEE OF EXPERTS THAT HALF OF THE EQUITY OF STATEOWNED LIFE INSURANCE CORP BE SOLD AND THAT PRIVATE INDIAN AND FOREIGN COMPANIES BE ALLOWED INTO THE INSURANCE BUSINESS THE MAJOR UNIONS WHICH ARE AFFILIATED WITH POLITICAL PARTIES AND THUS HAVE CONSIDERABLE CLOUT ALSO FEAR THAT COMPETITION WITH PRIVATE COMPANIES WILL MEAN A LOSS OF JOBS THE GOVERNMENT REPLIES THAT RATHER THAN FIRING WORKERS IT WILL RETRAIN THEM 9401170057 940117 KAWESKE SCORED ON CANADA PLAY LONG BEFORE FUNDS DID BY SARA CALIAN AND SUZANNE MCGEE STAFF REPORTERS OF THE WALL STREET JOURNAL LONG BEFORE INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR ALLEGEDLY FAILING TO REPORT PERSONAL STOCK TRADES HE WAS REAPING PERSONAL REWARDS FROM A COMPANY IN WHICH HIS FUNDS LATER INVESTED REGULATORY FILINGS SHOW HE GOT IN ON THE GROUND FLOOR OF TINY ID BIOMEDICAL CORP OF VANCOUVER BRITISH COLUMBIA JOINING ITS BOARD AND BUYING CHEAP PRIVATE STOCK FOR HIMSELF A YEAR BEFORE THIS HIGHFLIER WENT PUBLIC AND EVENTUALLY WOUND UP IN INVESCO MUTUAL FUNDS AND IN ANOTHER SIGN OF THE OVERLAP THAT OFTEN DEVELOPS BETWEEN FUND MANAGERS AND COMPANIES HELD IN THEIR FUNDS HIS SON WORKED FOR A TIME AT IVAX CORP A MIAMI PHARMACEUTICAL COMPANY WHOSE SHARES ARE STILL IN INVESCO MUTUAL FUNDS THE ID BIOMEDICAL CASE SHOWS HOW CLOSE TIES BETWEEN A FUND MANAGER AND A COMPANY IN THE MANAGER'S REALM OF EXPERTISE CAN BRING PERSONAL PERKS THAT A SMALL INVESTOR WOULDN'T GET AND IT ILLUMINATES THE QUESTION HAUNTING THE FUND INDUSTRY NOW ARE THE BENEFITS TO MANAGERS OF PERSONAL DEALINGS OUTWEIGHED BY POTENTIAL CONFLICTOFINTEREST PROBLEMS ID BIOMEDICAL DID ULTIMATELY PROVE PROFITABLE FOR INVESCO FUNDS AND IT'S NOT ILLEGAL FOR FUND MANAGERS TO TRADE FOR THEMSELVES OR SIT ON CORPORATE BOARDS BUT IT IS ILLEGAL FOR THEM TO ACCEPT PERSONAL COMPENSATION IN RETURN FOR MAKING A FUND BUY A PARTICULAR STOCK THE SEC AS REPORTED LAST WEEK IS SCRUTINIZING MR KAWESKE'S DEALINGS TO SEE IF HE VIOLATED FEDERAL SECURITIES LAWS MR KAWESKE HAS LONG SPECIALIZED IN HEALTH AND BIOTECHNOLOGY COMPANIES AND HIS SON HAS WORKED IN THE FIELD JOHN KAWESKE JR 24 YEARS OLD WAS EMPLOYED BY IVAX FROM JANUARY 1990 TO NOVEMBER 1992 HOLDING A JUNIOR POSITION AT THE COMPANY DURING A PERIOD WHEN INVESCO FUNDS HELD A CHUNK OF THE STOCK ACCORDING TO REGULATORY FILINGS THE SON MOVED ON FROM THERE TO BE A VICE PRESIDENT OF INVESTMENTS FOR NEW YORK'S D BLECH & CO WHERE CHAIRMAN DAVID BLECH IS A STOCK PROMOTER SPECIALIZING IN BIOTECH STOCKS SEVERAL OF WHICH WOUND UP IN INVESCO PORTFOLIOS THE ELDER MR KAWESKE PREVIOUSLY SUGGESTED THAT INVESCO MAY HAVE FIRED HIM BECAUSE IT SUSPECTED HE WAS ABOUT TO QUIT OVER THE WEEKEND THE FIRED MANAGER'S LAWYER ANDREW LEVANDER SAID MR KAWESKE COULDN'T BE REACHED TO COMMENT BECAUSE HE HAD GONE AWAY TO GET SOME REST DENVERBASED INVESCO HAS DISTANCED ITSELF FROM MR KAWESKE WHO MANAGED 46 BILLION OF ASSETS NEARLY HALF OF THE 10 BILLION INVESCO MANAGES ITS PARENT IS INVESCO PLC OF THE UNITED KINGDOM INVESCO ASSERTS IT DIDN'T EVEN KNOW MR KAWESKE WAS A DIRECTOR OF ID BIOMEDICAL JOHN ZESCHIN INVESCO EXECUTIVE VICE PRESIDENT SAID IN AN INTERVIEW FRIDAY THAT MR KAWESKE FAILED TO REPORT THAT HE IS A DIRECTOR OF A PUBLIC COMPANY AS REQUIRED BY INVESCO'S CODE OF CONDUCT MR LEVANDER DIFFERS HE SAID ONE OR MORE PERSONS AT INVESCO KNEW OF THE MANAGER'S POSITION AT ID BIOMEDICAL ID BIOMEDICAL SAID INVESCO FUND MANAGER BARRY KUROKAWA DID SOME WORK SCRUTINIZING ITS ID VACCINE CORP SUBSIDIARY BEFORE THAT SUBSIDIARY RAISED MONEY IN A JUNE 1993 PRIVATE PLACEMENT THE KAWESKEMANAGED GLOBAL HEALTH SCIENCES FUND INVESTED IN THAT OFFERING BARRY DID THE DUE DILIGENCE ON THE VACCINE SAID DAVID HALL ID BIOMEDICAL'S MANAGER OF CORPORATE DEVELOPMENT HE ADDED THAT THE DUEDILIGENCE WORK WAS ABOUT THE SCIENCE AND TECHNOLOGY NOT ABOUT MR KAWESKE'S PERSONAL POSITION MR KUROKAWA DIDN'T RETURN PHONE CALLS LAST WEEK HE ASSUMED EXPANDED RESPONSIBILITY FOR THE GLOBAL HEALTH SCIENCES FUND AND TOOK ON OTHER DUTIES IN THE WAKE OF MR KAWESKE'S FIRING MR KAWESKE'S CONNECTION TO THE CANADIAN COMPANY AROSE AFTER HE HEARD ABOUT A PROBEBASED TEST TO DIAGNOSE TUBERCULOSIS THAT IS BEING DEVELOPED BY SCIENTISTS AT THE UNIVERSITY OF BRITISH COLUMBIA IN VANCOUVER MR HALL SAID HE WAS INTERESTED IN THE PROBE FOR BUSINESS REASONS AND WE WERE ALSO INTERESTED THAT'S HOW WE MET THROUGH MUTUAL INTERESTS MR KAWESKE BECAME A DIRECTOR OF ID BIOMEDICAL IN MARCH 1991 AND IN JUNE OF THAT YEAR BOUGHT 20000 SHARES FOR HIMSELF AT 50 CANADIAN CENTS EACH ACCORDING TO FILINGS WITH THE BRITISH COLUMBIA SECURITIES COMMISSION THE FILINGS WERE NOTED IN CANADA STOCKWATCH AN INDUSTRY NEWSLETTER BASED IN VANCOUVER LESS THAN A YEAR LATER MR KAWESKE'S C10000 US7564 INITIAL INVESTMENT BLOSSOMED WHEN THE COMPANY WENT PUBLIC IN MARCH 1992 AT C250 A SHARE US189 ABOUT SIX MONTHS AFTER THAT MR KAWESKE POCKETED HIS FIRST GAIN ON HIS ID BIOMEDICAL POSITION SELLING 10000 SHARES IN TWO SEPARATE TRADES AT ABOUT 170 A SHARE THE STOCK WENT ON TO SOAR GETTING AS HIGH AS C31 IN NOVEMBER 1993 AND EMERGING AS ONE OF THE HOTTEST STOCKS ON THE VANCOUVER EXCHANGE ALTHOUGH SEVERAL MAJOR INVESTORS IN THE VANCOUVER STOCKBROKER COMMUNITY SAY ID BIOMEDICAL IS A HIGHTECH COMPANY POISED FOR GROWTH THEY DOUBT THAT A STILLUNPROFITABLE FLEDGLING COMPANY WOULD HAVE BEEN AS SUCCESSFUL WITHOUT MR KAWESKE THERE ARE SOME VERY REAL COMPANIES ON THE VSE AND ID BIOMED IS A CASE IN POINT RICHARD GROOME MANAGING DIRECTOR OF THE VANCOUVER OFFICE OF MARLEAU LEMIRE SECURITIES INC SAID IN AN INTERVIEW LAST YEAR YOU JUST HAVE TO LOOK AT ID BIOMEDICAL'S CLOSE TIES TO INVESCO AND JOHN KAWESKE A VERY RESPECTED DENVER FUND MANAGER AND INVESTOR ID BIOMEDICAL'S MR HALL SAID THAT ALTHOUGH MR KAWESKE HAS CONTRIBUTED GREATLY TO THE COMPANY AS A DIRECTOR ANY SUGGESTION THAT THE STOCK HAS BEEN MOVED BY PROMOTION OF JOHN KAWESKE IS ABSURD THE STOCK DROPPED C2 IN CANADA LAST WEEK TO CLOSE AT C17 ID BIOMEDICAL STARTED TRADING SIX MONTHS AGO ON THE NASDAQ STOCK MARKET AT ABOUT US4 IT ENDED AT 1275 FRIDAY IN SEPTEMBER AMID WILD SWINGS IN ID BIOMEDICAL'S STOCK PRICE MR KAWESKE EXERCISED OPTIONS BUYING 35000 SHARES AT 250 APIECE WHEN THE STOCK WAS AT ABOUT C24 HIS LAWYER SAYS OTHER COMPANY INSIDERS WERE ALSO EXERCISING OPTIONS THEN AT THAT TIME MR KAWESKE GOT OPTIONS TO BUY 35000 MORE SHARES AT C2015 EACH ON SEPT 30 MR KAWESKE SOLD 5000 SHARES TO HIS WIFE PAM AT C26 EACH CANADIAN FILINGS SHOW THIS SALE WAS CONSIDERED A GIFT TRANSFER FOR ESTATEPLANNING PURPOSES ACCORDING TO MR LEVANDER WHO SAID NONE OF THE TRADES INVOLVE ANY IMPROPRIETIES MR KAWESKE ACQUIRED HIS STOCK YEARS BEFORE ANY FUND BOUGHT STOCKI DON'T BELIEVE HE HAS COMMITTED ANY WRONGDOING THE LAWYER ADDED CURRENTLY MR KAWESKE HOLDS 123333 SHARES ID BIOMEDICAL SAID MEANWHILE MR KAWESKE WAS ALSO BUYING THE STOCK AND MAKING A PROFIT FOR THE FUNDS HE MANAGED ACCORDING TO SEC FILINGS ADMAX GLOBAL HEALTH SCIENCE FUND MANAGED BY INVESCO UNDER CONTRACT AND DISTRIBUTED IN CANADA BOUGHT 25000 SHARES OF ID BIOMEDICAL BETWEEN NOVEMBER 1992 AND AUGUST 1993 AT 550 TO 7875 IT SOLD 10000 SHARES IN LATE NOVEMBER AT ABOUT 2 1/2 TIMES THAT AMOUNT KEEPING THE REST ALSO FILINGS SHOW INVESCO'S HEALTH SCIENCES JAPAN FUND BOUGHT 50000 SHARES AT 755 EACH AUG 20 SELLING SOME AT A PROFIT CLOSE TO YEAR END AND RETAINING ABOUT 15000 SHARES MR KAWESKE'S OTHER LINKS INCLUDE CALIFORNIA STOCK PROMOTER RAFI KHAN FUNDS MANAGED BY MR KAWESKE WERE BUYERS OF A NUMBER OF STOCKS PROMOTED BY MR KHAN WITH WHOM INVESCO HAS SAID IT SEVERED TIES SEVERAL MONTHS AGO MR KAWESKE INVESTED PERSONALLY IN CARDIAC SCIENCE INC WHICH MR KHAN WAS PUSHING BEFORE IT WENT PUBLIC BUT THAT STOCK UNLIKE ID BIOMEDICAL ISN'T IN INVESCO FUNDS ACCORDING TO RECENT 13F FILINGS WITH THE SEC 9401170056 940117 TRACKING THE ECONOMY BY ALAN YONAN JR LOW MORTGAGE RATES SPARKED A WAVE OF NEW HOME CONSTRUCTION LAST YEAR BUT IT WILL TAKE MORE THAN THAT TO KEEP THE INDUSTRY GROWING IN 1994 HOUSING STARTS GREW STEADILY IN 1993 REACHING AN ANNUAL RATE OF 1432000 UNITS IN NOVEMBER THAT WAS THE HIGHEST LEVEL SINCE BEFORE THE 199091 RECESSION MUCH OF THE BOOM WAS ATTRIBUTED TO MORTGAGE RATES WHICH FELL TO 25YEAR LOWS LAST FALL A COMMERCE DEPARTMENT REPORT THIS WEEK WILL PROBABLY SHOW A SLIGHT INCREASE IN DECEMBER HOUSING STARTS TO A 1450000UNIT RATE SAID ROBERT BRUSCA ECONOMIST AT NIKKO SECURITIES ATTRACTIVE MORTGAGE RATES ARE STILL DRAWING PROSPECTIVE HOME BUYERS INTO THE MARKET BUT THAT PHENOMENON HAS JUST ABOUT RUN ITS COURSE HE SAID MR BRUSCA SAID THE EFFECT OF VERY LOW INTEREST RATES IS BEGINNING TO WEAR OFF NOW WE'RE GOING TO HAVE TO DO IT WITH THE ECONOMY WITH MORE JOBS AND BETTER INCOME GROWTH HE SAID AND THE ECONOMY WHICH HAS BEEN GROWING SLOWLY BUT STEADILY SHOULD PROVIDE SOME HELP MR BRUSCA SAID HE EXPECTS HOUSING STARTS IN 1994 TO IMPROVE SLIGHTLY TO 1500000 UNITS ADDITIONALLY THE FACT THAT BUILDING PERMITS CONTINUE TO BE ISSUED AT A HIGH RATE BODES WELL FOR FUTURE CONSTRUCTION ACTIVITY HE SAID 9401170055 940117 LEISURE & ARTS BOOKSHELF STALIN'S GREAT ENGINE OF TREASON BY DAVID PRYCEJONES SECRECY AND DECEPTION GAVE THE FORMER SOVIET UNION AN UNDOUBTED EDGE DURING ITS PROTRACTED STRUGGLE WITH THE REST OF THE WORLD NOBODY IS YET SURE HOW DEEPLY THE VARIOUS SPY RINGS PENETRATED NOR THE EXTENT TO WHICH EACH COUNTRY'S COMMUNIST PARTY WAS AN INSTRUMENT OF SABOTAGE AND TREASON IN DOUBLE LIVES FREE PRESS 419 PAGES 2495 STEPHEN KOCH TREATS THE PARTICULAR CAREER OF WILLI MUNZENBERG AS A GENERAL ILLUMINATION OF SOVIET DECEPTION RISING FROM A HUMBLE GERMAN BACKGROUND MUNZENBERG BECAME THE FOREMOST OPERATOR OF THE COMINTERN STALIN'S AGENCY FOR SUBVERSION ABROAD MUNZENBERG HAS BEEN WRITTEN UP SEVERAL TIMES BUT MR KOCH WAS ABLE TO CHECK THESE ACCOUNTS AND MUCH ACCOMPANYING RUMOR WITH MUNZENBERG'S WIDOW BABETTE DEUTSCH A FORMIDABLE WITNESS OF THE TIMES WHO HAS SINCE DIED THE RESULT IS A LIVELY READABLE BOOK ONCE HITLER TOOK POWER MUNZENBERG MOVED TO PARIS WHERE HE GATHERED ROUND HIM WHAT MR KOCH CALLS MUNZENBERGMEN HIS PRINCIPAL LIEUTENANT WAS CZECHBORN OTTO KATZ HALF PLAYBOY AND HALF MONSTER AND WELLCAST FOR THE ROLE BETWEEN THEM MUNZENBERG AND KATZ MANAGED TO CROSS THE PATHS OF AN IMMENSE RANGE OF THE CELEBRITIES ROGUES AND WILLING DUPES WHO MADE UP PUBLIC OPINION THEY WERE THE RECRUITING OFFICERS OF THE ARMY OF FELLOW TRAVELERS WHO TURNED THE SOVIET UNION INTO THE MOST FASHIONABLE OF CAUSES BETWEEN THE WARS MUNZENBERG SHREWDLY PERCEIVED THAT IF THE SOVIET UNION WAS TO BE WIDELY ADMIRED THE TERROR OF ITS SYSTEM HAD TO BE MADE INVISIBLE THE BEST MEANS FOR ACHIEVING THIS LAY IN CONCENTRATING ON THE MISTAKES AND FAILINGS OF COMMUNISM'S ENEMIES IN THE FIRST INSTANCE NAZISM AND THEN CAPITALISM OR AMERICA WHERE HITLER WAS CONCERNED IT WAS EASY FOR MUNZENBERG OR ANYONE ELSE TO CLAIM THE HIGH MORAL GROUND THE TRIAL OF COMINTERN LEADER DIMITROV ON THE PHONY CHARGE OF SETTING FIRE TO THE GERMAN REICHSTAG THE WHOLE COURSE OF THE SPANISH CIVIL WAR THE POPULAR FRONT THE PERSECUTION OF JEWS THESE WERE FOR MUNZENBERG OPPORTUNITIES TO CONTRIVE COMMUNIST VIRTUE OUT OF NAZI VICE MR KOCH DESCRIBES HOW THE LIKES OF MALRAUX HEMINGWAY SINCLAIR LEWIS AND PICASSO SO BADLY WANTED TO BELIEVE THIS SIMPLE SCHEME THAT MUNZENBERG HARDLY HAD TO DO MORE THAN TELEPHONE THEM IT IS MR KOCH'S CONTENTION THAT MUNZENBERG'S TENTACLES SPREAD THROUGH BLOOMSBURY AND INTO PHILBY'S CAMBRIDGE CORRUPTING INTELLECTUALS EVERYWHERE REACHING INTO THE WASHINGTON OF NOEL FIELD AND ALGER HISS EVEN CATCHING HOLD OF HOLLYWOOD CERTAINLY MUNZENBERG PROVED AN IMPRESARIO OF GENIUS OUT OF HIS IMAGINATION POURED THE SETUPS AND PROCEDURES NOW TAKEN FOR GRANTED IN MANIPULATING OPINION FRONT ORGANIZATIONS CULTURAL CONGRESSES PUBLICATIONS SPONSORED TO SPREAD SLANTED NEWS PEACE RALLIES ORGANIZED LETTERS IN THE PRESS BY PRESTIGIOUS ARTISTS AND WRITERS NOBODY KNEW BETTER HOW TO AROUSE INDIGNATION AND NOBODY KNEW BETTER HOW TO CONCEAL THE ENDS TO WHICH THAT INDIGNATION WAS TO BE PUT THE ESSENTIAL TRICK WAS NEVER TO DEFINE THE POINT AT WHICH INDIGNATION HAD SLIPPED INTO FELLOW TRAVELING ONCE PEOPLE WERE PERSUADED THAT FELLOW TRAVELING WAS MORALLY JUSTIFIED THEN THEY HAD ALREADY BECOME THE HUMAN MATERIAL OUT OF WHICH DOWNRIGHT TRAITORS AND SPIES COULD BE SHAPED IF MR KOCH IS RIGHT WHAT LOOKED LIKE SEPARATE RINGS OF AGENTS IN THE DEMOCRACIES WERE REALLY UNDER CENTRAL CONTROL IN ORWELLIAN FASHION BIG BROTHER STALIN WAS DICTATING POLICY AND MANIPULATION ALIKE ONCE STALIN HAD ABSOLUTE CONTROL AT HOME HITLER WAS THE ONLY MAN IN THE WORLD WHO COULD STILL THREATEN HIM BEHIND THE DIMITROV TRIAL MR KOCH ARGUES CAN BE DETECTED THE EARLY ELEMENTS OF THE COLLABORATION WITH HITLER IN WHICH STALIN THOUGHT HIS SAFETY LAY LIKEWISE STALIN TOOK AN INTEREST IN SPAIN ONLY TO ACQUIRE SOMETHING HE COULD TRADE OFF WITH HITLER THE POPULAR FRONT AND THE MUNZENBERGMEN WERE USEFUL COVERS FOR THE PURGES AND GREAT TERROR OF 1937 BUT POLICIES SO DECEPTIVE AND TERRORISTIC WERE BOUND TO RENDER EXPENDABLE THOSE WHO CARRIED THEM OUT WHEN MUNZENBERG WAS FOUND MYSTERIOUSLY DEAD IN 1940 APPARENTLY AS HE TRIED TO ESCAPE ACROSS FRANCE FROM THE INVADING GERMANS SOME THOUGHT THE SOVIETS HAD LIQUIDATED HIM FOR HITLER'S SAKE STALIN MAY HAVE DECIDED TO BETRAY HIS OWN GREAT ENGINE OF TREASON MR KOCH'S DETAILED ACCOUNT OF MUNZENBERG'S LAST DAYS MAKES THE ASSUMPTION OF SOVIET MURDER A VIRTUAL CERTAINTY AS FOR OTTO KATZ HE WAS DEPORTED FROM THE US IN 1940 ONCE THE COMMUNISTS STAGED THEIR COUP IN CZECHOSLOVAKIA IN 1948 HE RETURNED HOME AND CAME INTO HIS OWN BUT ANOTHER CHANGE OF STALIN'S LINE BROUGHT SHOW TRIALS ARRESTED KATZ CONFESSED THAT ALL ALONG HE HAD BEEN A WESTERN AGENT AND HE WAS HANGED THE SOVIET WORLD IS NO MORE BUT IT IS STILL A CHALLENGE TO COMPREHEND THE TWISTS AND TURNS OF ITS DEFILEMENTS INCLUDING LIVES LIKE THESE MR PRYCEJONES IS AUTHOR OF THE CLOSED CIRCLE AN INTERPRETATION OF THE ARABS 9401170054 940117 BUSINESS BRIEF OWENSCORNING FIBERGLAS CORP JURY AWARDS 107 MILLION IN ASBESTOSPRODUCT LAWSUIT A JURY AWARDED DAMAGES OF 107 MILLION AGAINST OWENSCORNING FIBERGLAS CORP AFTER FINDING THAT ASBESTOS PIPE INSULATION IT ONCE MANUFACTURED CAUSED CANCER IN A DECEASED SHIP RIGGER THE TOLEDO OHIO COMPANY IS RESPONSIBLE FOR 42 MILLION IN COMPENSATORY DAMAGES AND 65 MILLION IN PUNITIVE DAMAGES ACCORDING TO THE VERDICT OF A JURY IN NEW YORK SUPREME COURT THE JURY IN THE CASE AWARDED A TOTAL OF 126 MILLION TO THE ESTATE OF JOHN SCANLON WITH OTHER PARTIES RESPONSIBLE FOR THE ADDITIONAL 19 MILLION MR SCANLON WHO FITTED SHIPS WITH PIPES FROM 1952 TO 1959 AT THE BROOKLYN NAVY YARD DIED IN 1993 TWO YEARS AFTER BEING DIAGNOSED WITH MESOTHELIOMA A CANCER OF THE LINING OF THE LUNG SAID RICHARD NEMEROFF ONE OF THE ESTATE'S ATTORNEYS AN OWENSCORNING SPOKESMAN SAID THE COMPANY WILL APPEAL THE DECISION OWENSCORNING MADE THE ASBESTOS PIPE INSULATION KAYLO FROM 1958 TO 1972 HE SAID 9401170053 940117 BUSINESS BRIEF RUBBERMAID INC JOINT VENTURE WITH RICHELL TO SELL TO JAPANESE MARKET RUBBERMAID INC WOOSTER OHIO SAID IT INTENDS TO FORM A JOINT VENTURE WITH JAPAN'S RICHELL CORP TO SELL MARKET AND DEVELOP HOUSEWARES LEISURE AND SPECIALTY PRODUCTS FOR THE JAPANESE MARKET THE VENTURE IS SCHEDULED TO BEGIN OPERATIONS IN APRIL RUBBERMAID WILL HOLD A 40 EQUITY INTEREST AND WILL HAVE THE OPPORTUNITY TO INCREASE ITS HOLDING TO A MAJORITY POSITION BY THE END OF THE YEAR RUBBERMAID MAKES AND MARKETS PLASTIC AND RUBBER PRODUCTS INCLUDING KITCHENWARE LAUNDRY AND BATH ACCESSORIES MICROWAVE OVENWARE OFFICE PRODUCTS AND CHILDREN'S TOYS RICHELL MAKES HOME AND LEISURE PRODUCTS 9401170052 940117 LAW JUSTICES AGREE TO HEAR HONDA APPEAL FOR CAP ON PUNITIVEDAMAGE AWARDS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO CONSIDER AGAIN DEMANDS FOR CONSTITUTIONAL LIMITS ON PUNITIVEDAMAGE AWARDS IN CIVIL LAWSUITS THE JUSTICES SAID FRIDAY THEY WOULD HEAR AN APPEAL BY HONDA MOTOR CO OF A 5 MILLION PUNITIVE AWARD THAT AN OREGON JURY HANDED A PLAINTIFF WHO WAS BADLY INJURED WHEN HIS THREEWHEEL ALLTERRAIN VEHICLE OVERTURNED THE JAPANESE CAR MAKER STRESSED IN ITS APPEAL THAT OREGON APPARENTLY ALONE AMONG THE STATES BARS ANY OVERSIGHT BY TRIAL AND APPELLATE JUDGES OF PUNITIVE OR COMPENSATORY DAMAGE AWARDS FEW LEGAL ISSUES SPARK GREATER INDIGNATION IN BUSINESS AND INSURANCE CIRCLES THAN LARGE PUNITIVEDAMAGE AWARDS WHICH ARE DESIGNED TO PUNISH DEFENDANTS AND DETER FUTURE WRONGDOING COMPENSATORY AWARDS REPAY PLAINTIFFS FOR THEIR LOSSES CONSUMER ADVOCATES DEFEND LARGE PUNITIVE AWARDS AS NECESSARY TO DISCIPLINE CORPORATIONS DOCTORS AND OTHER DEFENDANTS THEY ALSO ARGUE THAT PUNITIVE AWARDS PROVIDE AN INCENTIVE FOR PLAINTIFFS' LAWYERS TO FILE LEGITIMATE SUITS THAT ARE EXPENSIVE TO PURSUE IN A SERIES OF CASES IN RECENT YEARS THE SUPREME COURT HAS REJECTED APPEALS BY BUSINESS INTERESTS FOR DISTINCT CONSTITUTIONAL GUIDELINES THAT WOULD CURB PUNITIVE DAMAGES THE HIGH COURT HAS SEEMED TO ASSUME THOUGH THAT WHEN SUCH AWARDS ARE CHALLENGED AS EXCESSIVE THEY OUGHT BE REVIEWED BY TRIAL AND APPELLATE JUDGES THE OREGON SUPREME COURT IN CONTRAST HAS INTERPRETED THE STATE'S CONSTITUTION AS PROHIBITING JUDGES FROM SECONDGUESSING THE AMOUNT OF COMPENSATORY OR PUNITIVE DAMAGES AWARDED BY JURIES IN THE CASE THE JUSTICES AGREED TO HEAR THE JURY FOUND THAT THE HONDA VEHICLE WAS UNSAFE AND AWARDED THE PLAINTIFF 19390 FOR MEDICAL EXPENSES AND 900000 FOR PAIN AND SUFFERING IN ADDITION TO THE 5 MILLION IN PUNITIVE DAMAGES THE COMPENSATORY PART WAS REDUCED BY 184000 BE CAUSE THE JURY HAD FOUND THE PLAINTIFF 20 AT FAULT FOR THE ACCIDENT WHICH OCCURRED WHEN HE TRIED TO RIDE UP A STEEP EMBANKMENT FOLLOWING STATE JUDICIAL PRECEDENTS THE TRIAL JUDGE REFUSED TO CONSIDER WHETHER THE PUNITIVE DAMAGE AWARD WAS EXCESSIVE THE OREGON SUPREME COURT AFFIRMED THE TRIAL RESULTS IT REJECTED HONDA'S ARGUMENT THAT US SUPREME COURT DECISIONS LAST YEAR AND IN 1991 SAID AT LEAST SOME JUDICIAL REVIEW OF PUNITIVE AWARDS IS NEEDED TO MEET THE US CONSTITUTION'S GUARANTEE OF DUE PROCESS ALL THAT IS NEEDED TO FULFILL THE DUEPROCESS REQUIRE MENT THE STATE'S TOP COURT SAID WAS JUDICIAL REVIEW OF THE INSTRUCTIONS GIVEN TO THE JURY AND OF WHETHER THE EVIDENCE WAS SUFFICIENT TO JUSTIFY ANY PUNITIVE DAMAGES AT ALL 9401170051 940117 LEISURE & ARTS OPERA A NEW NORMA' BY HEIDI WALESON SEATTLE THE DRUIDS MUST HAVE PUT A CURSE ON THE SEATTLE OPERA'S NEW PRODUCTION OF BELLINI'S NORMA FIRST SOPRANO CAROL VANESS THE SHOW'S STAR AND REASON FOR BEING HURT HER BACK AND PULLED OUT OF THE PRODUCTION A FEW DAYS INTO REHEARSALS A FRANTIC SEARCH AROUND THE OPERA GLOBE PRODUCED A REPLACEMENT ENGLISH SOPRANO JANE EAGLEN SHE ARRIVED A WEEK LATER TO TAKE ON THE ROLE OF THE DRUID PRIESTESS AND WAS PROMPTLY FELLED BY THE FLU SO MS EAGLEN MADE HER AMERICAN OPERA DEBUT IN ONE OF THE MOST DEMANDING ROLES OF THE REPERTOIRE WITH NO STAGE OR ORCHESTRA REHEARSALS IT WOULD BE NICE TO REPORT THAT THIS MUCHJINXED NORMA TURNED OUT TO BE AN UNQUALIFIED TRIUMPH BUT ALAS TO PARAPHRASE BERTOLT BRECHT THIS IS LIFE NOT OPERA FIRST HOWEVER THE GOOD NEWS MS EAGLEN CAN CERTAINLY SING NORMA AND NOT MANY PEOPLE CAN SHE HAS THE NECESSARY RANGE AND VOCAL CONTROL THE POWER FOR THE ROLE'S STENTORIAN PARTS AND THE STAMINA FOR ITS LENGTH HER SOUND IS ROUND FULL AND HANDSOME HER COLORATURA FLEXIBLE IF A LITTLE WEIGHTIER THAN IS DESIRABLE AND SHE SINGS VERY BEAUTIFUL PIANISSIMOS HER VOICE SHOWED SOME STRAIN IN ACT II OCCASIONAL PITCH PROBLEMS CLIPPED OUTOFBREATH PHRASES AND A PINCHED HIGH NOTE BUT SHE DID SOME OF HER BEST SINGING IN THE DIFFICULT SOPRANOTENOR DUET OF THE OPERA'S HOME STRETCH BUT MS EAGLEN HAD MORE TO CONTEND WITH THAN JUST THE LASTMINUTE CIRCUMSTANCES OF HER DEBUT DIRECTOR NICHOLAS MUNI APPARENTLY HAD OTHER THINGS ON HIS MIND THAN HELPING HIS LEADING LADY INHABIT NORMA'S EMOTIONAL ROLLER COASTER IN A BELIEVABLE WAY INSTEAD MR MUNI AND HIS DESIGNER JOHN CONKLIN STAGED A NORMA STUFFED WITH UNCONVINCING IDEAS AND BIZARRE GESTURES AND LEFT MS EAGLEN WHO IS A BIG WOMAN HIGH AND DRY THERE WASN'T MUCH SPARKLE TO THIS NORMA EVEN HER FIRST BIG SHOWPIECE THE DEATHDEFYING CABALETTA TO CASTA DIVA JUST LAY THERE IT WAS CLEAR WE WERE IN TROUBLE WHEN THE CURTAIN WENT UP ON A PILE OF BROKEN STATUARY WITH THE ROMAN EAGLE PLANTED IN ITS MIDST NO SIGN OF THE DRUIDS' SACRED FOREST THAT ONLY SHOWED UP AT THE END AS A PROJECTION OF BURNT TREE TRUNKS EVEN MORE OMINOUS WERE THE DRUIDS THEMSELVES LOOKING LIKE A BUNCH OF MALNOURISHED HARE KRISHNAS COMPLETE WITH ORANGE ROBES SHAVED PATES AND UNKEMPT FRINGES OF HAIR NORMA MONUMENTAL IN A TRAILING BLACK GOWN THAT SHE KEPT NERVOUSLY FLICKING AWAY HAD CLEARLY BEEN GETTING MOST OF THE RATIONS NOT THAT IT WAS DOING HER MUCH GOOD THE DRUIDS KEPT FALLING DOWN NO DOUBT TO DEMONSTRATE THEIR TOTAL SUBJUGATION AT THE HANDS OF THE ROMANS DURING THE SACRED RITES THEY LAY ON THEIR BACKS AND WAVED THEIR LEGS IN THE AIR AS THOUGH ATTACKED BY ROACH SPRAY AND DURING THE GUERRA GUERRA CHORUS OF ACT II THEY INDULGED IN AN ORGY OF SELF AND MUTUAL FLAGELLATION BLOOD AND ALL THIS BUNCH OF DRUIDS WOULDN'T GET FAR IN A FIGHT WITH THE ROMANS WHICH WAS PROBABLY THE POINT BUT BEATING THE AUDIENCE MEMBERS OVER THE HEAD WITH A CONCEPT IS NOT NECESSARILY THE WAY TO MAKE THEM FEEL IT THE LIGHTING BY DUANE SCHULER WAS EQUALLY OBVIOUS GUESS WHAT COLOR IT TURNED WHEN NORMA STARTED IN ON MY BURNING FURY AFTER SHE FOUND OUT THAT HER LOVER POLLIONE HAD BETRAYED HER WITH NOVICE PRIESTESS ADALGISA ALL EYES ARE SUPPOSED TO BE ON NORMA WHEN SHE APPEARS BUT MR MUNI KEPT UPSTAGING HER FIRST BY GIVING POLLIONE VISITATION RIGHTS BEFORE NORMA'S FIRST SCENE WITH THEIR CHILDREN AND LATER IN THE FINALE BY HAVING SECOND BANANA SOPRANO ADALGISA SUSANNE MENTZER REACH UP AND TAKE THE SACRED SICKLE OUT OF NORMA'S HAND AS THE HEAD PRIESTESS CONFESSES THAT SHE HAS BROKEN HER VOWS MS EAGLEN SEEMED PERPLEXED NORMA'S OUTBURSTS AND LIGHTNING SHIFTS FROM TENDERNESS TO RAGE CAME OUT OF NOWHERE WHEN SHE DID LET LOOSE IT WAS SOMETIMES JUST RIGHT AS WHEN SHE PRACTICALLY SPIT AT POLLIONE NOW YOU ARE BEGGING SOMETIMES SHE WENT OVER THE TOP AS IN HER SCENERYCHEWING PLEA TO OROVESO TO RESCUE HER CHILDREN AMONG MS EAGLEN'S BEST MOMENTS WERE HER DUETS WITH MS MENTZER WHO MADE A PASSIONATE CASE FOR ADALGISA WITH HER ATTRACTIVE MEZZO VOICE SHE AND MS EAGLEN MAY HAVE SUCCEEDED AS A TWOSOME IN PART BECAUSE THEY WERE ALLOWED TO STAND STILL ALBEIT IN THE SAME FACETOFACE PROFILE POSE BOTH TIMES UNFORTUNATELY MS MENTZER'S ADALGISA BECAME EVER MORE TURBULENTLY FLAILINGLY DEMENTED FIRST SHE HACKED OFF HER HAIR WITH NORMA'S DAGGER IN A GESTURE OF SISTERHOOD THEN SHE OFFERED HERSELF ZOMBIELIKE AS THE WAR SACRIFICE AND FINALLY SHE COLLAPSED FRONT AND CENTER LIKE THE BRIDE OF FRANKENSTEIN RUN OUT OF JUICE AS POLLIONE THE ROMAN PROCONSUL WITH A TASTE FOR YOUNG DRUID PRIESTESSES TENOR CRAIG SIRIANNI LOOKED TOO CALLOW TO SEDUCE ANYBODY HE BELLOWED HIS WAY THROUGH THE MUSIC AND WHEN HE NEEDED TO SHOW EMOTION INSERTED A FEW SOBS WHEN HE WASN'T COLLAPSING BASS KENNETH COX DID SOLID WORK AS OROVESO THE HEAD MALE DRUID AND NORMA'S DAD THE CONDUCTOR EDUARDO MULLER SET THE TONE FOR THE SHOW WITH HIS BREAKNECK RENDITION OF ITS PRELUDE AND THEREAFTER COULDN'T OR DIDN'T DO MUCH TO PULL TOGETHER THE DRAMATIC LINE SO BRUTALLY FRACTURED BY THE PRODUCTION MS EAGLEN IS SCHEDULED TO SING BRUNNHILDE IN CHICAGO'S RING CYCLE IN A FEW SEASONS' TIME PERHAPS A MIDWESTERN VALHALLA WILL BE A HAPPIER SHOWCASE FOR HER THAN THIS PACIFIC RIM GAUL MS WALESON IS A MUSIC WRITER IN NEW YORK 9401170050 940117 THE OUTLOOK IN FACTORIES A NEW DAY DAWNS A LONGER ONE BY AMANDA BENNETT NEW YORK THE LENGTH OF THE WORKWEEK IN US FACTORIES HIT A POST1945 RECORD AT THE END OF LAST YEAR 417 HOURS THE LONGEST SINCE AMERICA WAS PUMPING OUT SHIPS AND PLANES FOR THE WAR EFFORT EXTRA OVERTIME ISN'T UNCOMMON FOR A SHORT PERIOD AFTER A RECESSION BUT THIS RECOVERY IS DIFFERENT THE LONGER WORKWEEK AT LEAST IN SOME MEASURE MAY BE HERE TO STAY HELPING KEEP THE UNEMPLOYMENT RATE STUBBORNLY HIGH FOR SOME TIME TO COME DURING THE EARLY MONTHS OF A RECOVERY WHEN ORDERS INCREASE CAUTIOUS EMPLOYERS TRADITIONALLY LOADED UP WORKERS WITH OVERTIME RATHER THAN RISK THE EXPENSE OF HIRING FULLTIME EMPLOYEES THEN AFTER THE RECOVERY TOOK HOLD THEY THROTTLED BACK ON OVERTIME ADDING MORE WORKERS AND SHORTENING THE AVERAGE NUMBER OF HOURS A PERSON SPENT ON THE JOB EACH WEEK THAT SHOULD HAVE HAPPENED THIS TIME TOO THE WORKWEEK SHOULD HAVE STARTED DECLINING SHORTLY AFTER THE CURRENT RECOVERY BEGAN IN APRIL 1991 INSTEAD AVERAGE WEEKLY OVERTIME SURGED ONE MORE HOUR TO 44 HOURS BY THE END OF 1993 THE FUNDAMENTALS HAVE EVIDENTLY CHANGED FROM WHERE THEY WERE FIVE OR 10 YEARS AGO SAYS PAUL C BISHOP A SENIOR ECONOMIST AT WEFA GROUP A FORECASTING FIRM BASED IN BALA CYNWYD PA THERE APPEARS TO BE SOMETHING MUCH DEEPER GOING ON HERE IN TERMS OF WHEN FIRMS DO THEIR HIRING IT'S CALLED BENEFITS THE RISING EXPENSE OF BENEFITS IS DRIVING EMPLOYERS TO WAIT TILL THE LAST POSSIBLE MOMENT TO HIRE NEW WORKERS SINCE 1987 ALONE THE COST OF BENEFITS FOR MANUFACTURING WORKERS HAS RISEN 42 WHILE WAGES HAVE CLIMBED 24 THE COST OF HEALTH BENEFITS HAS BEEN THE BIGGEST CULPRIT JUMPING 78 IN THE SAME PERIOD EMPLOYERS EXPECT THAT TO GET EVEN WORSE UNDER THE CLINTON HEALTH PLAN GIVEN THAT WE SPENT THREE YEARS BRINGING DOWN OUR COST STRUCTURE WE AREN'T GOING TO TURN AROUND AND REVERSE THAT REAL QUICK BY GIVING OUT BENEFITS LEFT AND RIGHT SAYS KEN GOLDSTEIN A CONFERENCE BOARD ECONOMIST MANY EMPLOYERS LABOR LEADERS AND ECONOMISTS BELIEVE OVERTIME HAS SIMPLY BECOME ONE MORE TOOL IN A COMPANY'S FIGHT AGAINST MAJOR COSTS SUCH AS BENEFITS MR BISHOP OF WEFA GROUP SAYS HE EXPECTED OVERTIME TO PEAK AT ABOUT 37 TO 4 HOURS DURING THIS RECOVERY NOT SO WE ARE SEARCHING FOR THE NEW PEAK RIGHT NOW HE SAYS HIS GUESS OVERTIME IN MANUFACTURING MAY CONTINUE TO CLIMB TO 45 OR 46 HOURS PER WEEK THIS PHENOMENON IS QUITE DIFFERENT IN THE SERVICE SECTOR WHICH MAKES UP THE BULK OF THE ECONOMY THERE EMPLOYERS TEND TO ADD PARTTIMERS TO FILL PRODUCTION GAPS THUS ACTUALLY SHORTENING THE AVERAGE WORKWEEK OF COURSE NOT EVERYONE BELIEVES THAT THE LONGER WORKWEEK WILL STAY THAT WAY THE JURY IS STILL OUT SAYS LARRY KATZ CHIEF ECONOMIST AT THE LABOR DEPARTMENT THE ONAGAIN OFFAGAIN NATURE OF THIS RECOVERY HAS SPOOKED EMPLOYERS INTO HOLDING BACK FROM SUBSTITUTING NEW HIRES FOR OVERTIME BUT HE BELIEVES THAT'S JUST TEMPORARY GIVE EMPLOYERS A FEW MORE MONTHS OF SOLID GROWTH UNDER THEIR BELTS HE SAYS AND THEY MAY BEGIN BEHAVING THE WAY THEY HAVE IN PAST RECOVERIES ADDING TO PAYROLLS INDEED SOME ECONOMISTS BELIEVE THE LONG WORKWEEK IS A VERY GOOD SIGN THAT HIRING IS ABOUT TO RAPIDLY PICK UP ONE REASON THAT MIGHT HAPPEN LOTS OF WORKERS ARE GETTING TIRED OF THE NEW MARATHON HOURS TAKE ALVA LEWIS FOR EXAMPLE A MILLWRIGHT AT A GENERAL MOTORS CORP PLANT IN OHIO HE JUMPED AT THE CHANCE TO EARN OVERTIME PAY LAST YEAR AND ENDED UP TAKING ONLY THREE DAYS OFF IN ALL OF 1993 BUT HE'S LESS INCLINED TO WORK THAT HARD AGAIN THIS YEAR A LOT OF US ARE GETTING TIRED OF IT HE SAYS I HAVE A BOAT ON LAKE ERIE AND I ONLY GOT INTO IT ONE TIME LAST YEAR BUT FOR EVERY ALVA LEWIS THERE'S ALSO AN AJ LAWLS FOR EIGHT MONTHS LAST YEAR MR LAWLS EARNED OVERTIME AND HE LIKED IT WHEN FORD MOTOR CO CUT OUT THE OVERTIME WE WERE KIND OF DISAPPOINTED HE SAYS MOST OF US FEEL IT WAS EXTRA MONEY IN OUR POCKETS HE SAYS THAT IF HE WERE OFFERED OVERTIME AGAIN HE WOULD GRAB IT THUS WHATEVER HIRING THAT IS DONE IN THE NEARTERM WILL PROBABLY BE DONE AT THE MARGINS ARGUES LEO TROY A LABOR ECONOMIST AT RUTGERS UNIVERSITY BUSINESSES WILL BE FORCED TO HIRE NEW PEOPLE BUT IT WILL BE AS SMALL AN INCREASE AS POSSIBLE HE PREDICTS THERE WON'T BE A SHARP DROP IN WORK HOURS ORGANIZED LABOR DOESN'T LIKE THAT OF COURSE IT'S FINE THAT THERE'S MORE WORK TO DO BUT UNIONS NATURALLY PREFER SPREADING IT OVER MORE WORKERS ONE REASON THERE HASN'T BEEN GREATER HIRING LABOR LEADERS SAY IS THAT THE OVERTIME RATE THE PENALTY TO EMPLOYERS IS TOO LOW WHEN THE FEDERAL GOVERNMENT MANDATED IN 1938 THAT EMPLOYERS PAY WORKERS TIMEANDAHALF FOR ANY HOUR WORKED PAST 40 THE MOVE WAS INTENDED TO HELP PREVENT THE SORT OF SUBSTITUTION OF OVERTIME FOR NEW HIRES THAT'S GOING ON NOW BUT WITH THE COST OF BENEFITS THEMSELVES NOW EQUAL TO 50 OF THE WAGES OF MANUFACTURING WORKERS A 50 OVERTIME PENALTY DOESN'T SEEM NEARLY AS ONEROUS AS IN THE MID1960S WHEN THE COST OF BENEFITS EQUALED LESS THAN 25 OF WAGES TO DISCOURAGE THE USE OF OVERTIME SAYS JOHN ZALUSKY HEAD OF THE OFFICE OF WAGES AND INDUSTRIAL RELATIONS FOR THE AFLCIO WE'D LIKE DOUBLE TIME OR TRIPLE TIME INSTEAD OF TIMEANDAHALF BUT THAT ISN'T LIKELY TO HAPPEN SOON WHAT THEN MIGHT CAUSE A NOTABLE DROP IN THE LENGTH OF THE WORKWEEK THAT'S EASY ASSERTS GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS THE NEXT RECESSION THE FIRST THING EMPLOYERS DO IN A DOWNTURN IS SLASH OVERTIME 9401170049 940117 BUSINESS BRIEF THORN EMI PLC QUARTERLY STATEMENTS SLATED FIRST IS SCHEDULED FOR FEB 22 UNITED KINGDOM LEISURE AND ENTERTAINMENT CONCERN THORN EMI PLC SAID IN LONDON THAT IT WILL AUGMENT ITS CURRENT TWICEANNUAL RESULTS ANNOUNCEMENTS WITH QUARTERLY STATEMENTS THE COMPANY WILL MAKE ITS FIRST QUARTERLY ANNOUNCEMENT FEB 22 WITH A STATEMENT ON THE GROUP'S RESULTS FOR THE NINEMONTH PERIOD ENDING IN DECEMBER 1993 THORN WHICH HAS INTERESTS IN MUSIC RENTALS AND ELECTRONICS SAID IT WILL ANNOUNCE ON MAY 24 RESULTS FOR ITS FINANCIAL YEAR ENDING MARCH 31 THE COMPANY SAID IT DECIDED TO STEP UP THE NUMBER OF STATEMENTS IN LIGHT OF A LONDON STOCK EXCHANGE'S CONSULTIVE DOCUMENT ON THE DISSEMINATION OF PRICESENSITIVE INFORMATION ALTHOUGH THE EXCHANGE DIDN'T GIVE COMPANIES REPORTING GUIDELINES IT URGED THEM TO FORMALLY DISCLOSE PRICESENSITIVE INFORMATION IN PART TO PREVENT SELECTIVE LEAKS TO THE PRESS 9401170048 940117 COMCAST CORP ACQUISITION PHILADELPHIA COMCAST CORP SAID IT FORMALLY ADOPTED A PLAN TO BUY THE 8 OF COMCAST CABLEVISION OF PHILADELPHIA THAT IT DOESN'T ALREADY OWN COMCAST A CABLE COMMUNICATIONS SYSTEMS CONCERN SAID IN OCTOBER THAT IT PLANNED TO PAY SHAREHOLDERS OF COMCAST CABLEVISION OF PHILADELPHIA 95 A SHARE OR A TOTAL OF ABOUT 14 MILLION FOR THE 150000 COMCAST CABLEVISION SHARES IT SAID IT EXPECTS THE MERGER TO BE COMPLETED IN ABOUT 60 DAYS COMCAST CABLEVISION OF PHILADELPHIA IS THE PARTNERSHIP THAT OWNS A CABLE TELEVISION SYSTEM SERVING PARTS OF PHILADELPHIA 9401170047 940117 BUSINESS BRIEF BAROID CORP FIRM TO POST PROFIT GREATER THAN 4THQUARTER FORECASTS BAROID CORP HOUSTON SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME IN THE RANGE OF 15 MILLION OR 16 CENTS A SHARE TO 19 MILLION OR 20 CENTS A SHARE BETTER THAN ANALYSTS GENERALLY FORECAST THE SUPPLIER OF PETROLEUM SERVICES AND EQUIPMENT WHICH AGREED TO BE ACQUIRED BY DRESSER INDUSTRIES INC IN A STOCK PURCHASE WITH AN INDICATED VALUE OF ABOUT 850 MILLION ALSO SAID IT EXPECTS TO REPORT A FOURTHQUARTER CHARGE OF 30 MILLION OR 32 CENTS A SHARE RELATED TO THE ACQUISITION IN THE FOURTH QUARTER OF 1992 BAROID HAD NET INCOME OF 56 MILLION OR EIGHT CENTS A SHARE ON SALES OF 170 MILLION BAROID SAID THE LATEST QUARTER'S CHARGE INCLUDES SEVERANCE COSTS FROM THE PROPOSED DRESSER PURCHASE HOLDERS OF BOTH COMPANIES ARE SCHEDULED TO VOTE ON THE PURCHASE WEDNESDAY DRESSER MAKES EQUIPMENT FOR REFINERIES PETROCHEMICALS AND LIQUEFIED NATURALGAS PRODUCTS 9401170046 940117 WHO'S NEWS WELLCOME PLC WELLCOME PLC LONDON THIS BRITISH PHARMACEUTICAL COMPANY CONFIRMED JOHN ROBB AS CHAIRMAN AND CHIEF EXECUTIVE MR ROBB WAS APPOINTED TEMPORARILY TO THE JOBS IN AUGUST AFTER SIR ALISTAIR FRAME RETIRED AS CHAIRMAN MEANWHILE SIR ANTHONY TENNANT JOINED THE WELLCOME BOARD AS DEPUTY CHAIRMAN SIR ANTHONY ALSO IS CHAIRMAN OF THE UNITED KINGDOM AUCTION HOUSE CHRISTIE'S INTERNATIONAL AS WELL AS A NONEXECUTIVE DIRECTOR AT LEISURE COMPANY FORTE PLC AND INSURANCE CONCERN GUARDIAN ROYAL EXCHANGE PLC 9401170045 940117 BUSINESS BRIEF BELDEN & BLAKE CORP MOST NEW YORK OHIO ASSETS OF TGX CORP ARE ACQUIRED BELDEN & BLAKE CORP SAID IT PURCHASED SUBSTANTIALLY ALL OF TGX CORP'S NEW YORK AND OHIO ASSETS FOR 155 MILLION BELDEN SAID THE TRANSACTION WAS EFFECTIVE DEC 1 1993 TGX IS AN OIL AND GAS EXPLORATION COMPANY BASED IN HOUSTON BELDEN NORTH CANTON OHIO SAID THE ASSETS ACQUIRED INCLUDE AN AVERAGE WORKING INTEREST OF 88 IN 1034 OIL AND GAS WELLS ON ABOUT 121000 LEASEHOLD ACRES IN NORTHEASTERN OHIO AND SOUTHWESTERN NEW YORK ABOUT 15000 UNDEVELOPED LEASEHOLD ACRES IN THE PROXIMITY OF THE EXISTING PRODUCTION AND RELATED PRODUCTION EQUIPMENT AND SUPPLIES THE COMPANY ALSO SAID TGX HAS RETAINED THE RIGHT TO PARTICIPATE IN THE DEVELOPMENT OF THE UNDEVELOPED ACREAGE BELDEN ACQUIRES PRODUCES AND DEVELOPS OIL AND GAS PROPERTIES AND GATHERS AND MARKETS NATURAL GAS IN THE APPALACHIAN BASIN 9401170044 940117 WHO'S NEWS GYMBOREE CORP GYMBOREE CORP BURLINGAME CALIF NANCY J PEDOT 42 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND STUART G MOLDAW 66 WAS NAMED CHAIRMAN OF THIS SPECIALTY RETAILER MS PEDOT WHO RETAINS HER POST AS GYMBOREE PRESIDENT AND MR MOLDAW A GYMBOREE DIRECTOR SUCCEED DONALD S COHN 49 WHO RESIGNED FROM HIS POSTS AS CHAIRMAN DIRECTOR AND CHIEF EXECUTIVE THE MOVES LEAVE A VACANCY ON THE SEVENMEMBER BOARD 9401170043 940117 INTERNATIONAL BRIEF UNION BANK OF SWITZERLAND STOCK AND CASH ACQUISITION OF SMALL SWISS BANK PLANNED UNION BANK OF SWITZERLAND ZURICH ANNOUNCED OVER THE WEEKEND THAT IT INTENDS TO ACQUIRE A SMALL SWISS REGIONAL BANK IN A CASH AND STOCK TRANSACTION THE BOARD OF THE BANK TO BE ACQUIRED SOLOTHURNER HANDELSBANK HAS APPROVED THE TAKEOVER OFFER HANDELSBANK HAS TWO BILLION SWISS FRANCS 135 BILLION IN ASSETS SEVEN OUTLETS AND 146 EMPLOYEES THE TAKEOVER MARKS THE LATEST IN A STRING OF ACQUISITIONS AND MERGERS OF SMALL SWISS BANKS MANY OF WHICH HAVE FACED DIFFICULTIES FROM THE SLUGGISH SWISS ECONOMY AND REAL ESTATE MARKET UNION BANK OF SWITZERLAND IS THE LARGEST OF SWITZERLAND'S BIG THREE COMMERCIAL BANKS 9401170042 940117 BUSINESS BRIEF QUIDEL CORP LOSS OR BREAKEVEN RESULTS ESTIMATED FOR ITS 3RD PERIOD QUIDEL CORP SAN DIEGO EXPECTS TO REPORT RESULTS BETWEEN BREAKEVEN AND A TWOCENTASHARE LOSS FOR ITS THIRD QUARTER ENDED DEC 31 SAID SCOTT L GLENN CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN THE YEARAGO QUARTER QUIDEL EARNED 285000 OR TWO CENTS A SHARE ON SALES OF 75 MILLION ANALYSTS HAD FORECAST EARNINGS OF BETWEEN TWO CENTS AND THREE CENTS A SHARE FOR THE LATEST QUARTER MR GLENN SAID THE LOWERTHANEXPECTED EARNINGS ARE DUE IN PART TO DISAPPOINTING SALES OF ITS STREPTHROAT DIAGNOSTIC PRODUCT QTEST STREP ITS TOPSELLING ITEM HE SAID THE LATE AND MILD WINTER IN THE EAST DEPRESSED SALES IN ADDITION THE EXECUTIVE SAID THAT BECAUSE CHAIN RETAIL DRUGSTORES ENJOYED A STRONG CHRISTMAS SEASON QUIDEL'S ONESTEP TEST INTRODUCED JUST SIX MONTHS AGO WASN'T ALLOTTED SHELF SPACE AT MANY DRUGSTORES QUIDEL DEVELOPS AND PRODUCES NONINSTRUMENTAL DIAGNOSTIC TESTS FOR PHYSICIANS CLINICAL LABORATORIES AND THE HOMETESTING MARKET 9401170041 940117 WHO'S NEWS GREYHOUND LINES INC GREYHOUND LINES INC DALLAS BRADLEY T HARSLEM 41 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THE COUNTRY'S LARGEST INTERCITY BUS COMPANY HE WILL BE RESPONSIBLE FOR GREYHOUND'S INFORMATIONSYSTEMS DEVELOPMENT AND OPERATION MR HARSLEM JOINS GREYHOUND FROM AMR CORP'S AMERICAN AIRLINES UNIT WHERE HE HELPED DEVELOP PARTS OF THE SABRE RESERVATIONS SYSTEM 9401170040 940117 WHAT'S NEWS BUSINESS AND FINANCE METALLGESELLSCHAFT'S 120 BANK CREDITORS PULLED THE BIG GERMAN INDUSTRIAL GROUP BACK FROM AN IMMINENT BANKRUPTCYLAW FILING BY AGREEING TO A RESCUE PACKAGE OF ABOUT 19 BILLION THE ACCORD CALLS FOR BIGGER CASH CONTRIBUTIONS FROM DEUTSCHE BANK AND DRESDNER BANK TO OVERCOME OPPOSITION FROM FRENCH CREDITORS AND CLEARS THE WAY FOR A RESTRUCTURING THAT INCLUDES SELLING SEVERAL BUSINESSES MEDICAL CARE SIGNED AN AGREEMENT TO SELL ITS HOMEINFUSION UNIT TO CAREMARK FOR ABOUT 175 MILLION PROCEEDS WILL BE USED TO BUY BACK SHARES IN A MODIFIED DUTCH AUCTION US PROSECUTORS PLAN TO SEEK CRIMINAL CHARGES AGAINST A US UNIT OF LUCAS INDUSTRIES FOR SELLING THE PENTAGON ALLEGEDLY DEFECTIVE MISSILE HARDWARE LAWENFORCEMENT OFFICIALS SAID INDUSTRIAL PRODUCTION ROSE 07 IN DECEMBER DRIVEN BY HIGH AUTO PRODUCTION AN INDEX OF CONSUMER SENTIMENT FOR EARLY JANUARY ALSO JUMPED GM AND THE UAW REACHED A TENTATIVE ACCORD TO END A STRIKE AT GM'S SHREVEPORT LA PICKUP TRUCK PLANT THAT WAS CALLED TO PROTEST THE AUTO MAKER'S EFFORT TO BOOST PRODUCTIVITY INVESCO FUNDS MANAGER KAWESKE WAS REAPING PERSONAL REWARDS FROM A COMPANY IN WHICH HIS FUNDS LATER INVESTED LONG BEFORE HE WAS FIRED FOR ALLEGEDLY FAILING TO REPORT PERSONAL STOCK TRADES REGULATORY FILINGS SHOW PRUDENTIAL SECURITIES WAS ORDERED TO PAY A TOTAL OF 37 MILLION TO FIVE FORMER EXECUTIVES WHO HAD OPERATED A SUBSIDIARY IN PUERTO RICO AND ACCUSED THE FIRM OF WRONGFUL TERMINATION WALMART AGREED TO ACQUIRE ABOUT 120 WOOLCO STORES IN CANADA FROM WOOLWORTH'S CANADIAN SUBSIDIARY AT&T PLANS A 13 BILLION FOURTHQUARTER CHARGE TO COMPLY WITH NEW ACCOUNTING RULES AND IS EXPECTED TO CUT UP TO 1500 JOBS OR 19 OF PERSONNEL IN ITS INTERNAL COMPUTEROPERATIONS UNIT SEGA ENTERPRISES SAID MICROSOFT AGREED TO DEVELOP SOFTWARE FOR ITS NEXTGENERATION VIDEOGAME MACHINES COOPERS & LYBRAND'S CHAIRMAN PLANS TO RETIRE IN OCTOBER FREEDMAN HAD SURVEYED PARTNERS ABOUT A REELECTION BID BUT DECIDED TO STEP DOWN THE US WOULD CONSIDER LETTING JAPAN END ITS VOLUNTARY QUOTAS ON CAR EXPORTS TO THE US INSTEAD THE US WOULD FOCUS ON DEMANDING BENCHMARKS OF IMPROVED ACCESS TO JAPAN'S MARKET WHITE HOUSE OFFICIALS SAID DOW CORNING PLANS A FOURTHQUARTER PRETAX CHARGE OF 640 MILLION BASED ON ITS ESTIMATE OF POTENTIAL LIABILITY UNDER A PROPOSED 475 BILLION SETTLEMENT OF ALL BREASTIMPLANT SUITS THE HIGH COURT AGREED TO WEIGH DEMANDS FOR CONSTITUTIONAL LIMITS ON PUNITIVEDAMAGE AWARDS IN CIVIL SUITS A DUTCH PUBLISHER AGREED TO BUY BPI COMMUNICATIONS THE PUBLISHER OF ADWEEK BILLBOARD AND 17 OTHER SPECIALTY MAGAZINES FOR 220 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 557658 OFF 1903 COMMODITIES OIL 1478 A BARREL UP 27 CENTS DOW JONES FUTURES INDEX 14265 OFF 007 SPOT INDEX 13028 UP 035 DOLLAR 11106 YEN OFF 070 17495 MARKS OFF 00010 9401170039 940117 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK STEPHEN PROSTANO 36 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THE US OPERATIONS OF THE CHASE MANHATTAN PRIVATE BANK WHICH SERVES THE BANK'S WEALTHY CUSTOMERS WORLDWIDE MR PROSTANO FORMERLY A FIRST VICE PRESIDENT FOR MELLON BANK CORP WILL BE FILLING A NEWLY CREATED POSITION 9401170038 940117 TECHNOLOGY & ENVIRONMENT JAPAN'S SEGA SAYS MICROSOFT TO DEVELOP OPERATING SYSTEMS FOR GAME MACHINES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO VIDEOGAME MAKER SEGA ENTERPRISES LTD SAID MICROSOFT CORP WILL DEVELOP SOFTWARE FOR ITS NEXTGENERATION GAME MACHINES AN ALLIANCE BRINGING CLOSER TO REALITY THE MUCHHERALDED CONVERGENCE OF PERSONAL COMPUTERS AND VIDEOGAME MACHINES MICROSOFT WILL DEVELOP AN ORIGINAL OPERATING SYSTEM FOR A PLANNED SEGA GAME MACHINE CALLED THE SATURN A SEGA SPOKESWOMAN IN TOKYO SAID MICROSOFT OFFICIALS COULDN'T BE REACHED FOR COMMENT OPERATING SYSTEMS CONTROL THE BASIC FUNCTIONS OF COMPUTERS MAKING THEM EASIER TO USE AND TO PROGRAM BY PROVIDING A LAYER OF USERFRIENDLY COMMANDS BETWEEN A COMPUTER'S HARDWARE AND THE USER MICROSOFT BUILT ITS CURRENT EMPIRE LARGELY ON DOS ITS HUGELY SUCCESSFUL OPERATING SYSTEM FOR PERSONAL COMPUTERS THAT ARE COMPATIBLE WITH INTERNATIONAL BUSINESS MACHINES CORP EQUIPMENT SEGA'S DECISION TO ADD AN OPERATING SYSTEM TO ITS GAME COMPUTERS IS THE CLEAREST SIGN YET THAT GAME MACHINES AND PERSONAL COMPUTERS ARE STARTING TO JOSTLE OVER THE SAME TURF ADDING AN OPERATING SYSTEM TO THE SATURN MAY MAKE IT EASIER FOR GAME DEVELOPERS TO WRITE SOFTWARE FOR THE MACHINE IT ALSO MIGHT GIVE THE SATURN THE ABILITY TO SERVE AS A SOCALLED SETTOP BOX A PIECE OF HARDWARE THAT SOMEDAY MAY SERVE AS A CONTROL FOR SUCH MULTIMEDIA FUNCTIONS AS INTERACTIVE TELEVISION THE MOVE ALSO IS MICROSOFT'S FIRST MAJOR STEP INTO THE LUCRATIVE GAMECOMPUTER MARKET DOMINATED BY SEGA AND ARCHRIVAL NINTENDO CO WHILE IT HASN'T PREVIOUSLY ENTERED THE HOME GAMECOMPUTER MARKET MICROSOFT HAS AGGRESSIVELY PUSHED ITS WINDOWS PC OPERATING SOFTWARE AS A STANDARD NOT JUST FOR PERSONAL COMPUTERS BUT ALSO FOR A VARIETY OF OTHER HARDWARE SUCH AS PHOTOCOPIERS AND FAX MACHINES SEGA DECLINED TO SAY WHETHER MICROSOFT'S OPERATING SYSTEM FOR THE SATURN WOULD BE COMPATIBLE WITH PC SOFTWARE BY SIGNING UP MICROSOFT SEGA IS CONTINUING TO SET THE PACE IN PUSHING NEW TECHNOLOGIES FOR THE GAMECOMPUTER MARKET THE COMPANY FIRST RELEASED A CDROM PLAYER A DEVICE THAT PLAYS GAME SOFTWARE FROM COMPACT DISKS SEVERAL YEARS AGO A MOVE THAT OTHER GAME MAKERS ARE ONLY NOW STARTING TO COPY NINTENDO HAS YET TO ANNOUNCE PLANS FOR A CDROM DEVICE SEGA ALSO PLANS TO INTRODUCE THE FIRST CABLETV VIDEOGAME CHANNEL LATER THIS YEAR IN THE US ANALYSTS SAID THE DEAL ISN'T LIKELY TO HAVE MUCH EFFECT ON SEGA'S INTRODUCTION OF THE SATURN LATER THIS YEAR THE SIGNIFICANT FACTORS AFFECTING SALES THEY SAID WILL BE HARDWARE PRICING AND THE AVAILABILITY OF HOT NEW GAMES NOT WHETHER THE GAME COMPUTER CAN FUNCTION AS A SETTOP BOX THE NEW ALLIANCE ALSO COULD POSE LONGERTERM RISKS FOR SEGA BY ALLOWING MICROSOFT TO CONTROL ITS OPERATING SYSTEM SEGA MAY BE OPENING THE DOOR TO EROSION OF ITS PROPRIETARY GAMEHARDWARE STANDARD THE MAIN SOURCE OF ITS HUGE PROFITS YOU CAN'T KEEP MICROSOFT FROM GOING OUT AND SIGNING CONTRACTS WITH ALL SEGA'S COMPETITORS AS WELL SAID JOSEPH OSHA AN ANALYST WITH BARING SECURITIES JAPAN LTD IF THAT HAPPENS THE DIFFERENCES BETWEEN DIFFERENT GAME MACHINES SUCH AS THOSE FROM NINTENDO AND SEGA COULD VANISH OVER TIME WITH THEM WOULD GO MUCH OF THE REVENUE THOSE COMPANIES CURRENTLY ATTRACT 9401170037 940117 INTERNATIONAL BRIEF WINTERTHUR SWISS INSURANCE CO COMPANY PLANS TO ANNOUNCE A MAJOR EXPANSION TODAY WINTERTHUR SWISS INSURANCE CO SAID IT PLANS TO ANNOUNCE A MAJOR EXPANSION AT A NEWS CONFERENCE TODAY THE COMPANY DIDN'T PROVIDE ANY MORE DETAILS WINTERTHUR SHARES ROSE 14 SWISS FRANCS TO 820 FRANCS 554 IN TRADING IN ZURICH FRIDAY THERE WAS SPECULATION THAT WINTERTHUR MAY ANNOUNCE PLANS TO BUY COMMERZBANK AG'S CONTROLLING STAKE IN GERMAN INSURER DEUTSCHEN BEAMTENVERSICHERUNGSKASSE OR DBV COMMERZBANK HAS ALSO CALLED A NEWS CONFERENCE FOR TODAY COMMERZBANK HOLDS A STAKE OF 50 PLUS ONE SHARE IN THE GERMAN INSURER WHICH HAS 34 BILLION MARKS 194 BILLION IN ANNUAL PREMIUMS WINTERTHUR DECLINED TO COMMENT ON THE SPECULATION LAST MONTH WINTERTHUR SOLD ITS 28 STAKE IN SWITZERLAND'S MEDIUMSIZE HELVETIA VERSICHERUNGEGEN INSURANCE GROUP WHICH HAS A STRONG MARKET POSITION IN GERMANY 9401170036 940117 BUSINESS BRIEF CURTISSWRIGHT CORP UNIT SETTLES CIVIL FRAUD CASE BROUGHT BY THE GOVERNMENT A CURTISSWRIGHT CORP UNIT SETTLED FOR 175 MILLION A CIVIL FRAUD CASE IN WHICH THE US GOVERNMENT HAD CHARGED THE DEFENSE CONTRACTING CONCERN WITH DEFRAUDING AND OVERCHARGING IT THE CIVIL ACTION RESULTED FROM A RELATED CRIMINAL PROSECUTION IN WHICH 10 EMPLOYEES OF THE UNIT TARGET ROCK CORP EAST FARMINGDALE NY WERE CONVICTED BROOKLYN US ATTORNEY ZACHARY CARTER SAID TARGET ROCK WHICH MAKES VALVES USED BY THE NAVY IN ITS NUCLEAR FLEET ALLEGEDLY MISCHARGED LABOR HOURS TO NAVY CONTRACTS AND SUBMITTED FALSE INVOICES AND EXPENSE REPORTS CURTISSWRIGHT SAID THE SETTLEMENT WHICH WASN'T AN ADMISSION OF LIABILITY WOULD REDUCE NET EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR 1993 BY ABOUT 84 MILLION OR 167 A SHARE AND RESULT IN A LOSS FOR THOSE PERIODS FOR THE FIRST NINE MONTHS THE COMPANY HAD NET INCOME OF 81 MILLION OR 161 SHARE 9401170035 940117 BUSINESS BRIEF ALLTEL CORP HIBERNIA NATIONAL BANK SIGNS CONTRACT FOR DATA PROCESSING ALLTEL CORP LITTLE ROCK ARK SAID HIBERNIA NATIONAL BANK OF NEW ORLEANS SIGNED A SEVENYEAR CONTRACT UNDER WHICH AN ALLTEL SUBSIDIARY WILL PROVIDE COMPLETE DATA PROCESSING SERVICES TO THE BANK TERMS WEREN'T DISCLOSED THE TELECOMMUNICATIONS AND INFORMATION SERVICES COMPANY SAID THE PROCESSING WILL BE HANDLED AT ITS SYSTEMATICS FINANCIAL SERVICES DIVISION'S LITTLE ROCK CENTER HIBERNIA WHICH HAS SIGNED MERGER AGREEMENTS WITH FOUR LOUISIANA FINANCIAL INSTITUTIONS WILL RELY ON SYSTEMATICS FOR CONVERSION OF THE BANKS TO THE COMMON SOFTWARE PLATFORM HIBERNIA ESTIMATED THE CONTRACT WILL CUT ITS DATA PROCESSING COSTS BY 40 MILLION OVER THE LIFE OF THE CONTRACT ALLTEL SAID 9401170034 940117 BUSINESS BRIEF OHIO CASUALTY CORP FOURTHQUARTER PROFIT CUT BY LIABILITY IN NEW JERSEY OHIO CASUALTY CORP SAID ITS FOURTHQUARTER PROFIT WAS REDUCED BY ABOUT 62 CENTS A SHARE BECAUSE OF A 172 MILLION CONTINGENT LIABILITY FOR THE COMPANY'S SHARE OF THE NEW JERSEY MARKET TRANSITION FACILITY OPERATING LOSSES OHIO EARNED 321 MILLION OR 179 A SHARE IN THE YEAREARLIER QUARTER THE MTF RECORDED NET LOSSES OF ABOUT 400 MILLION IN BOTH 1991 AND 1992 OHIO CASUALTY HAD AN APPROXIMATE 2 MARKET SHARE FOR THE ASSESSMENT PERIOD THE FIRST PAYMENT IS DUE IN FEBRUARY 1994 TO COVER 1991 MTF OPERATING LOSSES AND THE SECOND PAYMENT WILL BE DUE IN FEBRUARY 1995 TO COVER 1992 MTF OPERATING LOSSES THE MTF WAS ESTABLISHED IN OCTOBER 1990 TO REPLACE THE NEW JERSEY JOINT UNDERWRITING ASSOCIATION IN PROVIDING AUTOMOBILE INSURANCE POLICIES FOR INDIVIDUALS WHO COULDN'T OBTAIN INSURANCE ELSEWHERE 9401170033 940117 BUSINESS BRIEF ALIAS RESEARCH INC SEC STARTS FORMAL STUDY OF DISCLOSURES STOCK TRADES ALIAS RESEARCH INC SAID IN TORONTO THAT IT IS BEING FORMALLY INVESTIGATED BY THE US SECURITIES AND EXCHANGE COMMISSION ALIAS DISCLOSED IN NOVEMBER 1992 THAT AN INFORMAL SEC INVESTIGATION WAS UNDER WAY NOW THE PROBE HAS BEEN MADE FORMAL WHICH ALLOWS THE SEC TO SUBPOENA PARTIES INVOLVED IN THE CASE ALIAS SAID IT SAID THE INVESTIGATION IS BEING CONDUCTED PRIVATELY THE SOFTWARE DESIGN CONCERN SAID THE SEC'S FORMAL ORDER CONFIRMED WHAT THE COMPANY HAD BELIEVED WAS THE FOCUS OF THE INVESTIGATION IT SAID THE FOCUS IS THE COMPANY'S PUBLIC DISCLOSURES DURING AND RELATED TO ITS FISCAL YEAR ENDED JAN 31 1992 AND THE UNDERLYING FINANCIAL RECORDS AND RESULTS FOR THIS PERIOD THE PROBE ALSO FOCUSES ON TRADING IN ALIAS SECURITIES BY CERTAIN FORMER OFFICERS AND DIRECTORS DURING 1991 THE COMPANY SAID IT DIDN'T ELABORATE ALIAS SAID IT HAS BEEN COOPERATING FULLY WITH THE SEC 9401170032 940117 WHO'S NEWS WASHINGTON POST CO WASHINGTON POST CO WASHINGTON PATRICK BUTLER 44 YEARS OLD WAS ELECTED A VICE PRESIDENT WITH RESPONSIBILITY FOR PUBLIC POLICY NEW BUSINESS AND SPECIAL CORPORATE PROJECTS THE POSITION IS NEW HE WAS MOST RECENTLY A VICE PRESIDENT AT THIS MEDIA COMPANY'S NEWSWEEK MAGAZINE AND VICE PRESIDENT OF LEGISLATE THE COMPANY'S INFORMATION SERVICES UNIT 9401170031 940117 BUSINESS BRIEF SUN SPORTSWEAR INC EARNINGS FOR FOURTH QUARTER ESTIMATED AT UP TO 400000 SUN SPORTSWEAR INC KENT WASH SAID IT EXPECTS TO REPORT 1993 EARNINGS WERE 25 MILLION TO 29 MILLION IMPLYING FOURTHQUARTER EARNINGS OF 100000 TO 400000 THE CLOTHING CONCERN ESTIMATED 1993 SALES OF 107 MILLION TO 108 MILLION IMPLYING FOURTHQUARTER SALES OF 284 MILLION TO 254 MILLION IN THE YEAREARLIER FOURTH QUARTER SUN EARNED 119000 OR TWO CENTS A SHARE ON 204 MILLION IN SALES IN A STATEMENT THE CASUAL SPORTSWEAR MAKER SAID 46 OF LAST YEAR'S SALES CAME FROM PRODUCTS BEARING LICENSED DESIGNS INCLUDING LOONEY TUNES CHARACTERS SUN ADDED THAT IT HOPES TO FATTEN PROFIT MARGINS AND LOWER COSTS THROUGH RECENT INVESTMENTS IN NEW TECHNOLOGY INCLUDING A COMPUTERAIDED DESIGN SYSTEM FOR ART PRODUCTION 9401170030 940117 BUSINESS BRIEF HALLIBURTON CO CONCERN TO REPORT CHARGE OF 62 MILLION FOR 4TH PERIOD HALLIBURTON CO DALLAS SAID IT EXPECTS TO REPORT A PRETAX CHARGE OF 62 MILLION RELATED TO THE PREVIOUS SALE OF ASSETS FOR THE FOURTH QUARTER HALLIBURTON SAID THE CHARGE RELATES TO THE SALE OF ITS SEISMICRELATED BUSINESS TO WESTERN ATLAS INTERNATIONAL INC THE OILFIELD SUBSIDIARY OF LITTON INDUSTRIES INC HALLIBURTON AN ENERGYSERVICES COMPANY SAID THE CHARGE INVOLVES COSTS ASSOCIATED WITH THE SALE SUCH AS INCREASED EXPENSES FOR SEVERANCE OF EMPLOYEES TERMINATION OF CONTRACTS REVALUATION OF ASSETS AND EXPECTED LOSSES ON SOME EXISTING CONTRACTS IN THE YEAREARLIER FOURTH QUARTER HALLIBURTON HAD A NET LOSS OF 1782 MILLION OR 166 A SHARE AFTER RESTRUCTURING CHARGES OF 1858 MILLION REVENUE WAS 169 BILLION THE COMPANY ALSO SAID IT COMPLETED THE SALE OF ITS SEISMIC BUSINESS TO WESTERN ATLAS FOR 190 MILLION IN CASH AND SENIOR NOTES 9401170029 940117 WHO'S NEWS EL PASO NATURAL GAS CO EL PASO NATURAL GAS CO EL PASO TEXAS JAMES F GIBBONS DEAN OF STANFORD UNIVERSITY'S SCHOOL OF ENGINEERING WAS ELECTED A DIRECTOR OF THIS NATURALGAS PIPELINE COMPANY EXPANDING THE BOARD TO SEVEN MEMBERS 9401170028 940117 BUSINESS BRIEF STORAGE EQUITIES INC ACQUISITION OFFER IS PLANNED FOR A SELFSTORAGE COMPANY STORAGE EQUITIES INC GLENDALE CALIF SAID IT PLANS TO MAKE A PROPOSAL TO PUBLIC STORAGE PROPERTIES VIII INC TO ACQUIRE THE COMPANY FOR CASH OR STOCK TERMS WEREN'T DISCLOSED STORAGE EQUITIES A REALESTATE INVESTMENT PARTNERSHIP SAID PUBLIC STORAGE PROPERTIES VIII SHAREHOLDERS WOULD RECEIVE CASH OR COMMON STOCK BASED ON THE APPRAISED VALUE OF THE COMPANY'S PROPERTIES PUBLIC STORAGE PROPERTIES VIII A GLENDALE REALESTATE INVESTMENT TRUST THAT OWNS MINIWAREHOUSE SELFSTORAGE FACILITIES SAID THAT THERE IS NO AGREEMENT YET AND THAT ANY MERGER WOULD BE CONDITIONED ON VARIOUS APPROVALS AND APPRAISALS HARVEY LENKIN PRESIDENT OF BOTH STORAGE EQUITIES AND PUBLIC STORAGE PROPERTIES VIII SAID PUBLIC STORAGE PROPERTIES VIII AWAITS WITH GREAT INTEREST NUMBERS OF THE OFFER HE DECLINED TO COMMENT ON WHY STORAGE EQUITIES WANTS TO ACQUIRE THE COMPANY STORAGE EQUITIES OWNS OR HAS INTERESTS IN 280 SELFSTORAGE PROPERTIES 9401170027 940117 BUSINESS BRIEF GANDALF TECHNOLOGIES INC ANTICIPATED LOSS TO SPARK LAYOFFS AT NEW JERSEY UNIT GANDALF TECHNOLOGIES INC SAID IT WILL PERMANENTLY LAY OFF 60 PEOPLE AT ITS CHERRY HILL NJ DIVISION BECAUSE OF AN EXPECTED LOSS IN ITS THIRD QUARTER ENDED DEC 26 GANDALF CHIEF EXECUTIVE BRIAN HEDGES SAID THE RESULTS WHICH ARE TO BE REPORTED IN FEBRUARY ARE WELL BELOW EXPECTATIONS HE SAID GANDALF EXPECTS TO REPORT A SIGNIFICANT LOSS ON REVENUE OF 30 MILLION IN THE FIRST SIX MONTHS OF FISCAL 1994 GANDALF HAD A NET LOSS OF 43 MILLION ON REVENUE OF 692 MILLION THE OTTAWA TELECOMMUNICATIONS EQUIPMENT CONCERN ALSO SAID THAT SEVERAL OFFICERS HAD RESIGNED FROM THE COMPANY INCLUDING JAMES HAHN FORMER VICE PRESIDENT OF MARKETING JOHN WANDELL FORMER PRESIDENT OF GANDALF CANADA LTD AND MICHAEL MCGRAIL FORMER PRESIDENT OF GANDALF INTERNATIONAL LTD GANDALF HAD 1366 EMPLOYEES AS OF LAST MARCH 31 9401170026 940117 BUSINESS BRIEF ALEXANDER & ALEXANDER SERVICES INC US UNIT TO PAY 99 MILLION IN BREACHOFCONTRACT SUIT ALEXANDER & ALEXANDER INC NEW YORK WAS FOUND LIABLE FOR BREACH OF CONTRACT RESULTING IN A 99 MILLION JUDGMENT IN A LAWSUIT BROUGHT AGAINST IT BY PREFERRED EMPLOYERS GROUP INC IN ITS CIVIL SUIT IN US DISTRICT COURT IN BALTIMORE PREFERRED ALLEGED THAT ALEXANDER & ALEXANDER USURPED ITS PLAN TO SELL A WORKERS COMPENSATION PROGRAM AIMED AT FASTFOOD RESTAURANT CHAINS PREFERRED A MIAMIBASED INSURANCE COMPANY SAID IT HAD ENTERED AN AGREEMENT WITH ALEXANDER TO IMPLEMENT ITS PROGRAM FOR BURGER KING AND OTHER FRANCHISES ALEXANDER OBTAINED PROPERTY AND CASUALTY INSURANCE PACKAGES BUT INSTEAD OF GIVING IT TO PREFERRED IT GAVE IT TO ONE OF ITS OWN SUBSIDIARIES PREFERRED'S ATTORNEYS SAID FUTHERMORE IT BEGAN A SCHEME TO PIRATE THE PREFERRED PROGRAM AND MARKET IT A SPOKESWOMAN FOR ALEXANDER & ALEXANDER THE US UNIT OF INSURANCE BROKERAGE FIRM ALEXANDER & ALEXANDER SERVICES INC SAID THE UNIT WAS DISAPPOINTED WITH THE JURY'S DECISION AND PLANNED TO APPEAL A SPOKESWOMAN ADDED THAT THE DECISION WOULD HAVE NO MATERIAL IMPACT ON THE FINANCES OF THE FIRM 9401170025 940117 BUSINESS BRIEF TSX CORP PACT REACHED WITH LENDER TO RESTRUCTURE FIRM'S DEBT TSX CORP SAID IT REACHED AGREEMENT WITH ITS LONGTERM LENDER SUBJECT TO CONDITIONS TO RESTRUCTURE ITS EXISTING DEBT TERMS CALL FOR THE EL PASO TEXAS ELECTRONICS CONCERN TO PAY ITS LENDER 10 MILLION IN CASH AND ISSUE 69 MILLION IN PAR VALUE NONCONVERTIBLE PREFERRED STOCK THE PREFERRED WILL BE REDEEMABLE ON THE NINTH ANNIVERSARY OF ITS ISSUE AND WON'T PAY OR ACCRUE DIVIDENDS TSX ALSO WILL ISSUE ABOUT 80000 SHARES OF COMMON STOCK TO THE LENDER TO FUND THE 10 MILLION PAYMENT TSX SAID IT REACHED AGREEMENT FOR A 10 MILLION BRIDGE LOAN SUBJECT TO CERTAIN CONDITIONS FROM MAGTEN ASSET MANAGEMENT CORP THE LOAN BEARS INTEREST AT A VARIABLE RATE PAYABLE QUARTERLY AND MATURING ONE YEAR FROM DATE OF ISSUE THE MAGTEN CLIENT ACCOUNTS PROVIDING THE LOAN WILL RECEIVE 300000 SHARES OF COMMON STOCK AND 300000 SERIES A WARRANTS SUBJECT TO VARIOUS APPROVALS TSX SAID IT EXPECTS TO COMPLETE ALL TRANSACTIONS BY MIDFEBRUARY HAROLD C TAMBURRO CHIEF FINANCIAL OFFICER SAID THE RESTRUCTURING WILL IMMEDIATELY REDUCE INTEREST COSTS BY 1 MILLION A YEAR AND REDUCE CASH OUTLAYS BY 45 MILLION A YEAR 9401170024 940117 LETTERS TO THE EDITOR HOW HIMMLER'S DOCTOR SAVED THE LIVES OF JEWS THERE HAS BEEN MUCH EMPHASIS RECENTLY ON SCHINDLER'S LIST THE MOVIE BY STEVEN SPIELBERG ON DEC 22 YOUR DOROTHY RABINOWITZ WROTE A LEISURE & ARTS PIECE ABOUT THE ITALIAN ARMY'S REFUSAL TO SHIP JEWS TO HITLER'S EXTERMINATION CAMPS ALL THIS PROMPTED ME TO REREAD THE MAN WITH THE MIRACULOUS HANDS BY JOSEPH KESSEL 1961 FARRAR STRAUS & CUDAHY IT IS THE FANTASTIC STORY OF FELIX KERSTEN HIMMLER'S PRIVATE DOCTOR WHOSE INFLUENCE SAVED THE LIVES OF THOUSANDS OF VICTIMS MARKED FOR EXTERMINATING BY THE NAZIS KERSTEN WAS SO ABLE TO CURE HIMMLER'S PAINS THAT HE COULD INFLUENCE THE REICHSFUEHRER TO SAVE MANY LIVES ALMOST DAILY DURING THE WAR HIMMLER ONCE SAID WITH EVERY ONE OF HIS MESSAGES DR KERSTEN DEPRIVES ME OF A LIFE HE STOPPED THE DEPORTATION OF THE ENTIRE POPULATION OF HOLLAND TO POLAND IN 1941 BY CONVINCING HIMMLER THAT STRESS OF OVERWORK WAS RUINING HIS HEALTH AND PREVENTING KERSTEN FROM CURING HIS PAIN WITH HIS CURING HANDS HE CONVINCED HIS PATIENT TO DIVERT A TRAINLOAD OF 2700 CONDEMNED JEWS TO SWITZERLAND AND FREEDOM PERHAPS HIS GREATEST ACCOMPLISHMENT OCCURRED NEAR THE END OF THE WAR WHEN HIMMLER WAS PREPARING TO OBEY ONE OF HITLER'S MOST HEINOUS ORDERS TO DYNAMITE THE CONCENTRATION CAMPS WHEN THE ALLIED ARMIES CAME WITHIN A FEW MILES KERSTEN CONTINUED HIS DAILY MESSAGES WHILE WORKING TO OVERCOME HIMMLER'S BLIND ALLEGIANCE TO HITLER CONVINCING HIM OF HIS GREATER ROLE IN HISTORY THAN THE INSANE HITLER AND HIMMLER FINALLY CONSENTED TO COUNTERMAND THE ORDER AND 800000 LIVES WERE SPARED RABBI ALEXANDER SCHINDLER'S JAN 4 LETTER TO THE EDITOR RIGHTLY EXTOLS THE EXTRAORDINARY EFFORT MADE BY THE DANISH PEOPLE IN SAVING THE 8000 DANISH JEWS FROM EXTERMINATION IT IS IMPORTANT TO REMEMBER THAT ANOTHER EUROPEAN COUNTRY UNDER GERMAN CONTROL BULGARIA WAS ABLE TO SAVE ALL ITS JEWISH CITIZENS IN 1939 THERE WERE SLIGHTLY MORE THAN 40000 JEWS IN BULGARIA AT THE END OF THE WAR THERE WERE CLOSE TO 50000 IT IS THE ONLY EUROPEAN COUNTRY EXCEPT FOR SWITZERLAND WHERE THE JEWISH POPULATION ACTUALLY GREW DURING THE WAR SOMEHOW THIS REMARKABLE EVENT HAS ESCAPED THE ATTENTION IT DESERVES WITHOUT DIMINISHING THE ASTOUNDING AND HEROIC DEED OF THE DANISH PEOPLE ONE SHOULD NOT FORGET THE EQUALLY MOMENTOUS DEED OF THE BULGARIAN PEOPLE I FOR ONE OWE THEM MY LIFE 9401170023 940117 MEDICAL CARE AMERICA PLANNING TO SELL ITS HOMEINFUSION BUSINESS TO CAREMARK BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS MEDICAL CARE AMERICA INC SIGNED A DEFINITIVE AGREEMENT TO SELL ITS STRUGGLING HOMEINFUSION UNIT TO CAREMARK INTERNATIONAL INC FOR 175 MILLION SAID JONATHAN BOND MEDICAL CARE'S EXECUTIVE VICE PRESIDENT MEDICAL CARE OPENED ITS BOOKS TO ACQUISITIONMINDED COMPETITORS LAST MONTH AMID SHAREHOLDERS' PROTESTS OVER ITS REJECTION OF AN EARLIER TAKEOVER BID MR BOND SAID THAT IN RESPONSE TO THOSE CONCERNS AND TO ENHANCE SHAREHOLDER VALUE MEDICAL CARE WOULD USE THE PROCEEDS OF THE UNIT'S SALE ALONG WITH EXISTING RESERVES TO BUY AS MANY AS SEVEN MILLION OF ITS 366 MILLION COMMON SHARES OUTSTANDING FOR BETWEEN 26 AND 29 A SHARE IN A MODIFIED DUTCH AUCTION IN A DUTCH AUCTION THE BUYER SETS A PRICE RANGE AND HOLDERS GIVE A PRICE AT WHICH THEY ARE WILLING TO SELL SHARES THE BUYER THEN PICKS A PRICE AND BUYS SHARES AT THAT PRICE FROM HOLDERS WHO OFFERED TO SELL AT THAT PRICE OR LOWER MR BOND SAID THAT THE BOARDS OF EACH COMPANY THE TWO LARGEST COMPETITORS IN THE 4 BILLION HOMEINFUSION INDUSTRY HAD APPROVED THE TRANSACTION AND THAT MEDICAL CARE HOPES TO COMPLETE THE SALE IN EARLY APRIL BUT THE AGREEMENT WITH CAREMARK NORTHBROOK ILL WON'T GUARANTEE THAT MEDICAL CARE'S RECENT TROUBLES ARE ENDED THE FEDERAL TRADE COMMISSION MUST STILL EXAMINE THE PROPOSED TRANSACTION FOR POSSIBLE ANTITRUST IMPLICATIONS AND MEDICAL CARE'S BOARD'S STOCKBUYBACK PLAN STILL MUST SATISFY PREVIOUSLY DISGRUNTLED SHAREHOLDERS MEDICAL CARE'S BOARD VOTED UNANIMOUSLY TO SELL ITS INFUSION UNIT DURING A MEETING HERE LAST THURSDAY ACCORDING TO PEOPLE CLOSE TO THE SITUATION IT CHOSE CAREMARK'S ALLCASH BID OVER ONE SUBMITTED BY WR GRACE & CO THE BOCA RATON FLA SPECIALTY CHEMICAL AND HEALTHCARESERVICES CONCERN DETAILS OF GRACE'S BID COULDN'T BE LEARNED AT THURSDAY'S MEETING THE BOARD ALSO REJECTED BIDS FOR THE ENTIRE COMPANY FROM AMERICAN MEDICAL HOLDINGS INC A DALLASBASED HOSPITAL CONCERN AND SURGICAL CARE AFFILIATES INC NASHVILLE TENN OPERATOR OF OUTPATIENTSURGERY CENTERS WHICH OFFERED TO ACQUIRE MEDICAL CARE FOR ALMOST 1 BILLION IN STOCK LAST OCTOBER MEDICAL CARE'S REBUFF OF SURGICAL CARE'S EARLIER OFFER TRIGGERED A REVOLT BY MAJOR SHAREHOLDERS LED BY MEMBERS OF THE BASS FAMILY OF FORT WORTH TEXAS IN DECEMBER THEIR LOBBYING FORCED THE COMPANY TO OPEN ITS BOOKS TO COMPETITORS INTERESTED IN ACQUIRING PART OR ALL OF MEDICAL CARE THE COMBINATION OF THE TWO INFUSION NETWORKS WOULD CREATE BROAD COSTCUTTING OPPORTUNITIES FOR CAREMARK A PRIMARY MEDICAL CARE COMPETITOR IN MANY MARKETS IT ALSO WOULD FREE MEDICAL CARE FROM A LINE OF BUSINESS THAT IT HASN'T BEEN ABLE TO OPERATE SUCCESSFULLY THE 175 MILLION SELLING PRICE IS FAR BELOW THE PROJECTIONS OF SOME INDUSTRY ANALYSTS WHO HAD ESTIMATED THE BUSINESS COULD FETCH AS MUCH AS 250 MILLION BUT IN RECENT MONTHS THE INFUSION INDUSTRY HAS FACED INTENSE COSTCUTTING PRESSURES FROM MANAGEDCARE PROVIDERS AND INSURERS AND MEDICAL CARE'S INFUSION BUSINESS WHICH IT ACQUIRED IN LATE 1992 HAS BEEN PLAGUED BY A HIGHCOST STRUCTURE AND ITS FAILURE TO MARKET EFFECTIVELY TO MANAGEDCARE PROVIDERS MEDICAL CARE IS THE NATION'S LARGEST OPERATOR OF OUTPATIENTSURGERY CENTERS AND BEHIND CAREMARK THE SECONDLARGEST PROVIDER OF HOMEINFUSION SERVICES WHICH ALLOW PATIENTS TO GIVE THEMSELVES INTRAVENOUS MEDICATIONS AT HOME MR BOND SAID THAT THE HOMEINFUSION BUSINESS ACCOUNTED FOR ABOUT 35 OF MEDICAL CARE'S REVENUE FOR THE FIRST NINE MONTHS OF 1993 BUT ONLY ABOUT 7 OF ITS OPERATING PROFIT IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE CAREMARK STOCK CLOSED AT 1950 UP 50 CENTS MEDICAL CARE STOCK ALSO LISTED ON THE BIG BOARD FELL 125 CENTS TO 24 ORIGINALLY SURGICAL CARE OFFERED TO TRADE 135 SHARES OF ITS COMMON STOCK FOR EACH MEDICAL CARE SHARE IN ITS LATEST BID SURGICAL CARE IS SAID TO HAVE INCREASED THE NUMBER OF SHARES IT WAS OFFERING BUT NOT SUFFICIENTLY TO MAKE UP FOR RECENT DECLINES IN ITS STOCK PRICE ON FRIDAY SURGICAL CARE CLOSED AT 15375 OFF 125 CENTS IN COMPOSITE TRADING ON THE BIG BOARD SURGICAL CARE WAS TRADING AT ABOUT 19 WHEN ITS OCTOBER BID WAS MADE A SURGICAL CARE SPOKESMAN DECLINED TO COMMENT ON THE SITUATION PEOPLE CLOSE TO MEDICAL CARE'S RECENT DELIBERATIONS SAID THAT AMERICAN MEDICAL'S BID WASN'T SUFFICIENTLY LARGE TO RATE SERIOUS CONSIDERATION BY THE BOARD SHRINKING PROFIT MARGINS IN THE HOMEINFUSION INDUSTRY LED CAREMARK SPUN OFF BY BAXTER INTERNATIONAL IN 1992 TO DIVERSIFY BROADLY INTO OTHER AREAS OF BUSINESS IT EXPANDED ITS PRESCRIPTIONDRUG SERVICES AND ACQUIRED ADDITIONAL PHYSICIAN PRACTICES AND FREESTANDING DIALYSIS CENTERS STILL HOME CARE WHICH INCLUDES INFUSION REPRESENTS ABOUT 25 OF CAREMARK'S BUSINESS IN 1992 IT HAD REVENUE OF ABOUT 15 BILLION AND SOME INDUSTRY OBSERVERS SAID THAT THE ADDITIONAL MEDICAL CARE OUTLETS COULD BE FOLDED INTO THE CAREMARK NETWORK AT A MINIMAL COST FOR THE NINE MONTHS MEDICAL CARE REPORTED A NET LOSS OF 1122 MILLION OR 307 A SHARE COMPARED WITH NET INCOME OF 314 MILLION OR 84 CENTS A SHARE THE YEAR EARLIER REVENUE INCREASED 55 TO 4688 MILLION FROM 4443 MILLION FOR ITS 1993 NINE MONTHS CAREMARK REPORTED A 31 INCREASE IN NET PROFIT TO 555 MILLION FROM 425 MILLION THE YEAR EARLIER REVENUE ROSE 23 TO 13 BILLION FROM 11 BILLION 9401170022 940117 PRUDENTIAL ORDERED TO PAY 37 MILLION TO EXEXECUTIVES OF PUERTO RICAN UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL INVESTORS AREN'T THE ONLY CLAIMANTS WINNING BIG LEGAL BATTLES AGAINST PRUDENTIAL SECURITIES INC A NEW YORK STOCK EXCHANGE ARBITRATION PANEL ORDERED PRUDENTIAL TO PAY A TOTAL OF 37 MILLION TO FIVE FORMER EXECUTIVES WHO HAD RUN PRUDENTIAL'S INSTITUTIONAL SALES AND TRADING SUBSIDIARY IN PUERTO RICO THE AWARD IS AMONG THE LARGEST WON BY EMPLOYEES IN AN ARBITRATION CASE FILED AGAINST A WALL STREET BROKERAGE FIRM THE EXECUTIVES OF PRUDENTIALBACHE CAPITAL FUNDING PUERTO RICO INC HAD ACCUSED THE FIRM OF WRONGFUL TERMINATION AFTER PRUDENTIAL SHUTTERED THE TRADING SUBSIDIARY IN JANUARY 1990 PRUDENTIAL COUNTERED THAT IT CLOSED THE UNIT FOR BUSINESS REASONS AFTER A TRADING POSITION LEFT THE FIRM AT RISK FOR 100 MILLION THE AWARD COMES AS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT BRACES FOR AN ONSLAUGHT OF LEGAL CLAIMS BY INDIVIDUAL INVESTORS WHO SAY THEY WERE MISLED INTO BUYING LIMITED PARTNERSHIPS IN THE 1980S INVESTORS ARE LOOKING TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS TO BOLSTER ITS OPERATIONS PRUDENTIAL ON FRIDAY NAMED ROBERT GOLDEN ITS OPERATIONS DIRECTOR TO HEAD UP THE PARTNERSHIP SETTLEMENT PROCESS ACCORDING TO AN INTERNAL MEMORANDUM PRUDENTIAL THE US'S FOURTHLARGEST BROKERAGE FIRM ALREADY HAS SET ASIDE ABOUT 800 MILLION IN THE PAST FEW YEARS TO PAY OUT LEGAL CLAIMS BY SMALL INVESTORS MANY INVOLVING THE PARTNERSHIPS MR GOLDEN'S APPOINTMENT APPEARS TO BE A BID TO ENSURE THAT THE FIRM HAS AN EFFECTIVE GAME PLAN FOR THE SETTLEMENTS TEAMWORK COMMUNICATION AND COOPERATION ARE ESSENTIAL AS WE DEVOTE OUR ENERGIES TO WHAT MUST BE A SUCCESSFUL ENDEAVOR HARDWICK SIMMONS PRUDENTIAL SECURITIES'S CHIEF EXECUTIVE WROTE IN THE MEMO THOUGH THE PUERTO RICAN CASE HAD NOTHING TO DO WITH PARTNERSHIPS OR INDIVIDUAL INVESTORS THE UNIT DEALT EXCLUSIVELY WITH LARGE INSTITUTIONAL CLIENTS THE AWARD STUNNED PRUDENTIAL EXECUTIVES WE THINK IT'S AN OUTRAGEOUS RESULT BASED ON THE FACTS PRUDENTIAL SAID IN A STATEMENT WE FIRED AN INDIVIDUAL IN THAT OPERATION BECAUSE OF HIS FAILURE TO DISCLOSE TERMS OF A VERY LARGE TRADE AND WE SHUT DOWN THE MERCHANTBANKING BUSINESS THERE FOR BUSINESS REASONS WE THINK WE'RE BEING PENALIZED FOR HAVING DONE THE RIGHT THING PRUDENTIAL HASN'T YET DECIDED WHETHER TO APPEAL THE CASE WHICH DRAGGED ON FOR 56 HEARINGS WAS UNUSUAL THE PLAINTIFFS INCLUDING JOSE RODRIGUEZ PRESIDENT AND ROBERT TANNER EXECUTIVE VICE PRESIDENT AND HEAD TRADER SAID THEY WERE EMOTIONALLY AND PROFESSIONALLY HARMED BECAUSE AMONG OTHER THINGS ARMED GUARDS ORDERED EMPLOYEES OUT OF THE BUILDING WHEN PRUDENTIAL SHUT THE UNIT YOU CAN'T COME IN AND CLOSE DOWN A SHOP WITH UTTER DISREGARD FOR PEOPLE WHO INVESTED YEARS OF THEIR LIFE BEING PRODUCTIVE SAID HAROLD VICENTE A LAWYER FOR THE PLAINTIFFS IN SANTURCE PUERTO RICO THAT'S NOT THE WAY YOU FINISH A RELATIONSHIP IN A COUNTERCLAIM PRUDENTIAL ACCUSED MR TANNER OF TAKING PART IN AN UNAUTHORIZED 100 MILLION OFFEXCHANGE TRADE AS PART OF THE TRANSACTION PRUDENTIAL ALLEGED MR TANNER IMPROPERLY TOLD THE TRADE'S COUNTERPARTY PHARMACEUTICAL GIANT SCHERINGPLOUGH CORP THAT IT COULD PUT BACK OR CANCEL THE TRADE IF IT WISHED THAT CLAIM WAS DISMISSED BY BIG BOARD ARBITRATORS THE PUT WAS MADE IN A LETTER TO SCHERINGPLOUGH IT WAS ALL MADE IN THE OPEN SAYS MR VICENTE MR TANNER'S LAWYER IN PAPERS FILED WITH ARBITRATORS MR TANNER ASSERTS THAT THE TRADE WAS PROFITABLE AS A WHOLE FOR PRUDENTIAL OF THE FIVE EXECUTIVES MR TANNER RECEIVED THE BIGGEST AWARD 102 MILLION PLUS NEARLY 300000 IN COSTS AND ATTORNEY'S FEES MR RODRIGUEZ RECEIVED 1 MILLION PLUS 266000 IN COSTS AND ATTORNEY'S FEES THE OTHER PLAINTIFFS WERE WOLFRAM PIETRI A SENIOR VICE PRESIDENT INVESTMENT BANKING JOSE CIMADEVILLA AN INVESTMENTBANKING OFFICER AND GARLAND HEDGES A SENIOR VICE PRESIDENT FUNDING THE TURNING POINT IN THE EXECUTIVES' CASE CAME WHEN PLAINTIFFS' LAWYERS DISCOVERED THAT PRUDENTIAL'S STAR WITNESS A FORMER FIRM OPERATIONS MANAGER WHO NOW IS CHIEF FINANCIAL OFFICER AT KIDDER PEABODY GROUP INC'S PUERTO RICAN UNIT WAS STILL ON PRUDENTIAL'S PAYROLL AND DIDN'T DISCLOSE IT PEOPLE FAMILIAR WITH THE CASE SAY PRUDENTIAL DECLINED TO COMMENT ON THE WITNESS CESAR GANDIAGA MR GANDIAGA COULDN'T BE REACHED PRUDENTIAL HAD BEEN PAYING MR GANDIAGA ABOUT 2500 A MONTH AS A CONSULTANT TO UNWIND TRADING POSITIONS AFTER THE SUBSIDIARY WAS CLOSED WITHOUT KIDDER'S KNOWLEDGE PEOPLE FAMILIAR WITH THE MATTER SAID KIDDER DECLINED TO COMMENT BUT THE PEOPLE SAID THAT WHEN THE GENERAL ELECTRIC CO UNIT FOUND OUT ABOUT MR GANDIAGA'S ARRANGEMENT WITH PRUDENTIAL IT ORDERED AN END TO THE PAYMENTS 9401170020 940117 HEARD ON THE STREET ST JUDE MEDICAL SHARES WILL REAP REWARDS FOR LONGTERM INVESTORS SOME MANAGERS SAY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL BUYING A GREAT COMPANY WHEN ITS INDUSTRY IS ON THE ROCKS IS A TIMEHONORED MONEYMAKING STRATEGY FOR LONGTERM INVESTORS THEY HAVE A CHANCE TO DO IT NOW IN ST JUDE MEDICAL A FEW BOLD MONEY MANAGERS AND ANALYSTS SAY ST JUDE IS THE COUNTRY'S LEADING MAKER OF MECHANICAL HEART VALVES IT HAS SUPERB PROFIT MARGINS RECENTLY 43 OF SALES OVER THE YEARS IT HAS SHOWN TERRIFIC EARNINGS GROWTH OF ABOUT 40 A YEAR THAT HAS SLOWED TO ABOUT 10 LATELY THE ST PAUL MINN COMPANY HAS A BIG HOARD OF CASH ABOUT 350 MILLION AND NO DEBT YET INVESTORS APPARENTLY ASSUME THAT ST JUDE'S GLORIES ARE IN THE PAST THE STOCK SELLS FOR A MERE 12 TIMES THE PAST FOUR QUARTERS' EARNINGS IT CLOSED FRIDAY AT 27 3/4 UNCHANGED ON THE NASDAQ STOCK MARKET THAT'S QUITE A COMEDOWN FOR A STOCK THAT HAD SOARED CLOSE TO 700 IN FOUR YEARS TO REACH A PEAK OF 55 1/2 TWO YEARS AGO THE 50 FALL IN TWO YEARS ISN'T UNUSUAL FOR MEDICAL STOCKS MANY OF WHICH PEAKED IN JANUARY 1992 COST CUTTING BY CORPORATIONS AND INSURANCE COMPANIES HAS BRUISED THE GROUP SO HAS PRESIDENT CLINTON'S PROPOSAL TO CHANGE THE NATION'S HEALTHCARE SYSTEM I THINK PEOPLE ARE REALLY TERRIFIED OF ANYTHING WITH THE WORD MEDICAL' IN IT SAYS JOHN BUCKINGHAM RESEARCH DIRECTOR AT AL FRANK ASSET MANAGEMENT IN SANTA MONICA CALIF BY SCOOPING THESE STOCKS UP NOW AND SITTING ON THEM FOR THREE TO FIVE YEARS WE THINK WE'LL BE AMPLY REWARDED CHICAGO MONEY MANAGER HARRIS ASSOCIATES WHICH HAS ONE OF THE BEST STOCKPICKING RECORDS IN THE BUSINESS OVER THE PAST FIVE YEARS HAS BOUGHT THE STOCK HEAVILY THIS IS A VERY WELLRUN COMPANY WITH A SUPERB PRODUCT SAYS JOHN RAITT AN ANALYST AND PARTNER AT HARRIS THEY HAVE LOTS OF CASH AND LOTS OF FREE CASH FLOW DETRACTORS ARGUE THAT ST JUDE MAY HAVE BEEN A GREAT GROWTH STOCK IN THE PAST BUT THAT THE BIG GROWTH IS BEHIND IT OF 23 ANALYSTS WHO FOLLOW THE STOCK 17 RATE IT NEUTRAL ACCORDING TO ZACKS INVESTMENT RESEARCH ON WALL STREET NEUTRAL IS OFTEN A CODE WORD FOR SELL THEY'VE KIND OF RUN INTO A BUZZ SAW SAYS DAVID J LOTHSON OF PAINEWEBBER I THINK THERE CLEARLY HAS BEEN A SLOWDOWN IN UTILIZATION OF VALVES IT'S A JUDGMENT CALL ON WHEN THE PROCEDURE NEEDS TO BE DONE WITH COST CUTTING IN VOGUE HE ANTICIPATES FEWER ELECTIVE HEARTVALVE REPLACEMENTS AND IF SOME VERSION OF THE CLINTON HEALTHCARE PLAN PASSES HE THINKS THE BODIES THAT WILL CONTROL HEALTHCARE SPENDING MAY WEIGH VALVE REPLACEMENTS AGAINST OTHER HEALTH NEEDS SUCH AS MALNUTRITION AIDS AND TRAUMA CARE MOREOVER MR LOTHSON SAYS ST JUDE'S TAX RATE WILL GO UP NEARLY FIVE PERCENTAGE POINTS THROUGH THE LOSS OF TAX BENEFITS FROM MANUFACTURING IN PUERTO RICO AND ONE OF ITS RIVALS CARBOMEDICS WON APPROVAL IN SEPTEMBER TO SELL HEART VALVES IN THE US JOEL ZIMMERMAN OF LEHMAN BROTHERS ALSO IS NEUTRAL WE WOULD EXPECT TO SEE THE NUMBER OF PROCEDURES STABILIZE OR EVEN DECLINE IN THE US HE SAYS ABROAD GROWTH RATE IS BETTER BUT THE PRICE PER VALVE ABOUT 3800 IN THE US IS SOMETIMES LOWER ANALYSTS FRET TOO ABOUT ST JUDE'S STATED INTENTION TO MAKE A MAJOR ACQUISITION ANY COMPANY ACQUIRED WOULD NATURALLY BE IN THE MEDICAL FIELD WHICH ANALYSTS VIEW AS A MINE FIELD OF EXPLOSIVE UNCERTAINTIES BUT EDWARD L MUTCH OF PIPER JAFFRAY ONE OF THE FEW BROKERAGEHOUSE BULLS ON ST JUDE SAYS INVESTORS HAVE LET THEIR FEARS BALLOON OUT OF PROPORTION THE WHOLE MEDICALDEVICE SECTOR IS OVERSOLD HE SAYS I SUSPECT ONE YEAR FROM NOW WE'LL BE LOOKING BACK AND SAYING INVESTORS REALLY MADE SOME GOOD MONEY IN ST JUDE AND OTHER MEDICALDEVICE STOCKS STEPHEN L WILSON CHIEF FINANCIAL OFFICER AT ST JUDE SAYS THE WORLDWIDE MARKET FOR HEART VALUES ABOUT 490 MILLION ANNUALLY IS GROWING PERHAPS 8 A YEAR 5 IN UNITS AND 3 IN PRICE INCREASES CLEARLY IN THE US THERE IS PRESSURE ON BOTH THOSE NUMBERS HE SAYS THE COMPANY HOPES TO SUPPLEMENT ITS HIGHLY REGARDED MECHANICAL VALVES WITH AN IMPROVED ANIMALTISSUE VALVE SOON BUT IT IS ALSO COUNTING ON AN ACQUISITION PROBABLY THIS YEAR TO REKINDLE GROWTH WE WANT TO TAKE ALL THE CASH GENERATED BY THE HEART VALVE BUSINESS AND PUT IT TO A BETTER USE THAN INVESTING IN TWOYEAR MUNICIPAL BONDS SAYS MR WILSON HEALTH CARE HAS BEEN SO BADLY MALIGNED IT IS AN ABSOLUTELY MARVELOUS INDUSTRY ARNOLD DOUVILLE A PORTFOLIO MANAGER AT MUNDER CAPITAL MANAGEMENT IN BIRMINGHAM MICH THINKS ST JUDE MIGHT ACQUIRE THE MEDICALDEVICE BUSINESS OF ELI LILLY MR WILSON SAYS THERE WOULD CERTAINLY BE A LEVEL OF INTEREST IN THE LILLY UNITS BUT HE HAS HAD NO INDICATION THAT THOSE BUSINESSES ARE FOR SALE 9401170019 940117 LETTERS TO THE EDITOR SUPERFUND CLEANUPS GIVE THEM TO STATES AS EPA'S SUPERFUND MANAGER FROM 1985 TO 1989 I READ TIM NOAH'S DEC 2 POLITICS & POLICY ARTICLE WITH INTEREST HE DESCRIBES WELL THE COMPETING INTERESTS ATTEMPTING TO FIX SUPERFUND ALL THE OLD FAVORITE ISSUES ARE THERE HOW CLEAN IS CLEAN EXCESSIVE COSTS RETROACTIVITY INSURANCE AND LIABILITY RATHER THAN DEBATE ALL THIS FINETUNING OF AN ILLCONCEIVED STATUTE LET ME PROPOSE A BETTER APPROACH TURN SUPERFUND OVER TO THE STATES EVERY DAY THE STATES ARE PROVING THEY CAN CLEAN UP SITES FASTER AND AT LOWER COST THAN THE FEDERAL SUPERFUND PROGRAM THE TYPICAL FEDERAL CLEANUP TAKES 10 YEARS AND COSTS ABOUT 30 MILLION BY CONTRAST MINNESOTA CLEANUPS TAKE TWO TO THREE YEARS AND AVERAGE LESS THAN 5 MILLION WISCONSIN ALREADY HAS CLEANED UP 227 SITES MORE THAN THE ENTIRE FEDERAL PROGRAM NEW YORK HAS COMPLETED ABOUT 140 SITES THE REASONS ARE INCREASINGLY APPARENT THE STATES ARE MUCH CLOSER TO THE SITE PROBLEMS AND LANDUSE ISSUES THE FEDERAL PROGRAM IS BUILT ON NATIONAL CONSISTENCY IN SITE REMEDIES WHICH IGNORES THE FACT THAT EACH SITE IS A UNIQUE LOCAL PROBLEM SITES DIFFER WIDELY IN TERMS OF POLLUTANTS INVOLVED HYDROLOGY AND GEOLOGY SITE AREA ACRES TO SQUARE MILES AND LANDUSE PATTERNS ANOTHER COMPLICATION IS THE COTTAGE INDUSTRY FINANCED BY TAXPAYERS TO MICROMANAGE SUPERFUND EPA FUNDS ALMOST 100 PEOPLE IN THE INSPECTOR GENERAL'S OFFICE TO FIND FRAUD WASTE AND ABUSE WHICH OF COURSE THEY ALWAYS DO CONGRESS HAS TASKED AN ALPHABET SOUP OF AGENCIES TO FINETUNE EVERY ASPECT OF SUPERFUND OPERATING AWAY FROM THE GLARE OF THIS NATIONAL SPOTLIGHT HAS ALLOWED THE STATES TO QUIETLY CLEAN UP THEIR SITES EPA ON THE OTHER HAND SPENDS MOST OF ITS TIME DEFENDING THE PROGRAM BEFORE REP DINGELL SEN LAUTENBERG AND OTHERS EPA SHOULD SET MINIMUM STANDARDS FOR STATE PROGRAMS BUT WITHOUT DEMANDING EXACT CONSISTENCY AND SHOULD MAINTAIN ITS LEAD IN CLEANING UP FEDERAL FACILITIES OTHERWISE THE STATES SHOULD TAKE OVER 9401170018 940117 CRYSTAL OIL CO PREFERRED SHREVEPORT LA CRYSTAL OIL CO SAID SHAREHOLDERS APPROVED AN AMENDMENT TO THE TERMS OF ITS SERIES A CONVERTIBLE VOTING PREFERRED STOCK THE COMPANY SAID THE AMENDMENT INCREASES THE CONVERSION RATE ON THE PREFERRED STOCK TO 00031 COMMON SHARE FOR EACH PREFERRED FROM 0002 COMMON SHARE FOR EACH PREFERRED THE AMENDMENT ALSO REQUIRES CRYSTAL TO REDEEM FOR SIX CENTS A SHARE ALL THE SERIES A PREFERRED SHARES OUTSTANDING AS OF THE CLOSE OF BUSINESS ON THE FIRST BUSINESS DAY FOLLOWING THE 90TH DAY AFTER THE EFFECTIVE DATE OF AMENDMENT 9401170017 940117 WHO'S NEWS FORD NAMES MAGEE GENERAL MANAGER AT LINCOLNMERCURY BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS SHAKING UP ITS MARKETING SALES AND CUSTOMER SERVICE OPERATIONS BY NAMING A NEW HEAD TO ITS LINCOLNMERCURY DIVISION AND CREATING A NEW VICE PRESIDENCY TO OVERSEE ITS CUSTOMER SATISFACTION UNIT LEE MISKOWSKI 61 YEARS OLD SAID HE IS RETIRING AS VICE PRESIDENT AND GENERAL MANAGER OF FORD'S LINCOLNMERCURY DIVISION ON APRIL 1 HIS SUCCESSOR KEITH MAGEE IS FACED WITH THE CHALLENGE OF MAKING THE DIVISION MORE ATTRACTIVE TO YOUNGER BUYERS STRENGTHENING MERCURY'S BRAND IDENTITY AND REGAINING LINCOLN'S PRESTIGE AS A LUXURY MARQUE MR MAGEE 47 IS VICE PRESIDENT OF INTERNATIONAL FINANCING OPERATIONS AT FORD MOTOR CREDIT CO HE ASSUMES HIS DUTIES ON FEB 1 WHEN MR MISKOWSKI BEGINS A SPECIAL ASSIGNMENT FORD ALSO NAMED TOM WAGNER FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF FORD CUSTOMER SERVICE TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF CUSTOMER COMMUNICATION AND SATISFACTION HE WILL BE RESPONSIBLE FOR THE FORD CUSTOMER SERVICE DIVISION MARKETING AND SALES OPERATIONS SYSTEMS AND COMMUNICATIONS AND MARKETING RESEARCH RONALD E GOLDSBERRY 51 GENERAL SALES AND MARKETING MANAGER OF FORD CUSTOMER SERVICE DIVISION REPLACES MR WAGNER AS VICE PRESIDENT AND GENERAL MANAGER OF THE CUSTOMER SERVICE DIVISION THIS NEW POSITION RECOGNIZES THAT SATISFYING ITS CUSTOMERS IS FORD'S NO 1 OBJECTIVE SAID ALEXANDER J TROTMAN FORD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PURSUIT OF TOTALLY SATISFIED CUSTOMERS PERMEATES VIRTUALLY EVERY ASPECT OF OUR BUSINESS AND WE'RE SEEKING TO BRING EVEN MORE FOCUS TO OUR EFFORTS MR WAGNER 55 WILL REPORT TO ROBERT REWEY WHO CONTINUES AS FORD'S GROUP VICE PRESIDENT FOR MARKETING AND SALES OPERATIONS IN OTHER CHANGES BASIL COUGHLAN 53 RETIRES AS VICE PRESIDENT OF NORTH AMERICAN MARKETING PLANS AND OPERATIONS TO PURSUE PERSONAL INTERESTS HE IS SUCCEEDED BY JAMES G O'CONNOR 50 FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FORD OF CANADA SUCCEEDING MR O'CONNOR IS MARK W HUTCHINS 48 FORMERLY FORD'S EXECUTIVE DIRECTOR OF MARKETING STRATEGIES 9401170016 940117 BUSINESS BRIEFS CLEAR CHANNEL COMMUNICATIONS SAN ANTONIO TEXAS SAID IT CLOSED THE PREVIOUSLY REPORTED PURCHASE OF AN OKLAHOMA CITY RADIO STATION KEBCFM FOR 75 MILLION THE BROADCASTING CONCERN ALSO OWNS TWO OTHER RADIO STATIONS IN THAT MARKET KTOKAM AND KJYOFM LIBERTE INVESTORS DALLAS HAS VOTED TO APPROVE THE COMPANY'S PLAN OF CHAPTER 11 REORGANIZATION PENDING CONFIRMATION ON WEDNESDAY BY A BANKRUPTCY COURT JUDGE LIBERTE FORMERLY KNOWN AS LOMAS & NETTLETON MORTGAGE INVESTORS FILED FOR CHAPTER 11 PROTECTION FROM ITS CREDITORS IN OCTOBER CAPPING TWO YEARS OF TALKS WITH ITS DEBT HOLDERS RENTWAY INC ERIE PA SAID IT OPENED TWO STORES IN ROCHESTER NY BRINGING THE NUMBER OF STORES IN OPERATION TO 22 RENTWAY RENTS OFTEN WITH AN OPTION TO BUY HOUSEHOLD PRODUCTS SUCH AS HOMEENTERTAINMENT EQUIPMENT MAJOR APPLIANCES AND FURNITURE NOVA CORP OF ALBERTA SAID IT HAS COMPLETED A SERIES OF TRANSACTIONS THAT WILL RESULT IN IT OWNING ABOUT A 24 INTEREST OR ABOUT 47 MILLION COMMON SHARES IN METHANEX CORP MAKING IT THE LARGEST SINGLE SHAREHOLDER THE SHARES WERE ACQUIRED FROM METHANEX IN EXCHANGE FOR NOVA'S METHANOL ASSETS AND PURCHASED FROM A HOLDING OF FLETCHER CHALLENGE LTD ADVACARE INC DALLAS RECEIVED CONTRACTS FROM FOUR HEALTHCARE PROVIDERS THAT COULD PROVIDE IT WITH AN ESTIMATED 75 MILLION ANNUALLY PROVIDERS ARE LMC LABORATORIES LAS VEGAS HOME OFFICE REFERENCE LABORATORY LEXENA KAN IRVING ANESTHESIA IRVING TEXAS AND NORTHEAST PATHOLOGY HOUSTON THE COMPANY ALSO SAID IT ENTERED INTO AN AGREEMENT WITH THE VETERANS DEPARTMENT TO ENHANCE THE DEPARTMENT'S HEALTHCARE COSTRECOVERY SERVICES ON A NATIONAL BASIS 9401170015 940117 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS GT GLOBAL DEVELOPING MARKETS FUND INC SAN FRANCISCO A CLOSEDEND FUND UNDER GTD AND JP REALTY INC SALT LAKE CITY A REAL ESTATE INVESTMENT TRUST JPR THE BIG BOARD ALSO BEGAN TRADING OSMONICS INC MINNETONKA MINN A MAKER OF TECHNOLOGY EQUIPMENT OSM WHICH PREVIOUSLY TRADED ON THE NASDAQ SYSTEM THE NASDAQ NATIONAL MARKET BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS FIDELITY FEDERAL SAVINGS BANK OF FLORIDA WEST PALM BEACH FLA A CHARTERED SAVINGS BANK FFFL CRESCENT AIRWAYS CORP LAWRENCEVILLE GA A PROVIDER OF HELICOPTER CONTRACT SERVICES AND AIR CHARTER SERVICES CRAR AND WARRENTS UNDER CRARW AND WESTERFED FINANCIAL CORP MISSOULA MONT A CHARTERED SAVINGS BANK WSTR THE NASDAQ ALSO BEGAN TRADING NOBILITY HOMES INC OCALA FLA A HOUSING PRODUCER WHICH PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET THE AMEX BEGAN TRADING COLONIAL DATA TECHNOLOGIES CORP NEW MILFORD CONN A SUPPLIER OF CALLER IDENTIFICATION DISPLAYS CDT THE COMPANY PREVIOUSLY TRADED ON THE EMERGING COMPANY MARKETPLACE THE AMEX ALSO LISTED SERIES A COMMON STOCK OF FRANKLIN REAL ESTATE INCOME FUND UNDER FIN FRANKLIN ADVANTAGE REAL ESTATE INCOME FUND FAD AND FRANKLIN SELECT REAL ESTATE INCOME FUND FSN EACH FUND IS A REAL ESTATE INVESTMENT TRUST THE AMEX LISTED A SECOND OFFERING OF PAINEWEBBER GROUP INC WARRANTS ON THE AMEX HONG KONG 30 INDEX AND AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING PYROCAP INTERNATIONAL CORP SPRINGFIELD VA A CHEMICAL MANUFACTURER PYREC CLASS A WARRANTS UNDER PYRWSAEC CLASS B WARRANTS UNDER PYRWSBEC AND CLASS C WARRANTS PYRWSCEC THE COMPANY PREVIOUSLY TRADED OVERTHECOUNTER THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT WILL BEGIN TRADING OPTIONS ON THE NASDAQ100 INDEX ON JAN 28 THE CBOE ALSO BEGAN TRADING OPTIONS ON THE AMERICAN DEPOSITORY RECEIPTS OF SHANGHAI PETROCHEMICAL COMPANY LTD 9401170014 940117 ENTERPRISE NEW CYBERSPACE STORES MARKET THEIR SOFTWARE ONLINE BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL THE CORNER STORE A SOFTWARE RETAILER BASED IN THE ROLLING HILLS OF LITCHFIELD CONN ISN'T ON A CORNER NOR IS IT REALLY A STORE IT'S A CYBERSPACE STORE LOCATED IN THE ELECTRONIC UNIVERSE OF COMPUTER ONLINE SERVICES BY SPECIALIZING IN SOFTWARE PRODUCTS THAT TRADITIONAL RETAILERS HESITATED TO STOCK AND BY SELLING THEM THROUGH A MEDIUM THE RETAILERS HAD OVERLOOKED THE CORNER STORE AND ANOTHER COMPANY INDELIBLE BLUE INC OF RALEIGH NC HAVE MADE MILLIONS OF DOLLARS COMPUTER INDUSTRY ANALYSTS SAY THE COMPANIES' FOUNDERS ARE AT THE FOREFRONT OF CHANGES THAT WILL EVENTUALLY REVOLUTIONIZE THE WAY SOFTWARE IS SOLD OUR VIEW IS THAT OVER TIME YOU WILL SEE MANY MORE COMMERCIAL TRANSACTIONS OCCUR ONLINE SAYS WILLIAM BLUESTEIN A RESEARCH DIRECTOR AT FORRESTER RESEARCH INC A COMPUTER CONSULTING CONCERN BASED IN CAMBRIDGE MASS AND WE FEEL THAT WILL HAPPEN FIRST WITH SOFTWARE BECAUSE A LOT OF SOFTWARE USERS ARE ONLINE THESE ARE FOLKS WHO ALREADY LIVE IN A DIGITAL WORLD PAOLO PIGNATELLI OWNER OF THE CORNER STORE AND KATHERINE ANSARDI AND BUCK BOHAC COOWNERS OF INDELIBLE BLUE BEGAN THEIR VENTURES BECAUSE OF THEIR FAMILIARITY WITH THE NEEDS OF THE INHABITANTS OF CYBERSPACE A TERM COMPUTER BUFFS USE TO DESCRIBE THE ELECTRONIC REALM OF ONLINE COMPUTING BOTH COMPANIES SPECIALIZE IN SELLING OS/2 A COMPUTER SOFTWARE SYSTEM DESIGNED BY INTERNATIONAL BUSINESS MACHINES CORP AND OS/2 APPLICATIONS DESIGNED BY OTHERS OS/2 FIRST OFFERED IN 1987 AND REINTRODUCED LAST YEAR IN A SUBSTANTIALLY REVISED VERSION IS IBM'S CHALLENGE TO THE MARKET DOMINANCE OF MICROSOFT CORP'S WINDOWS OPERATING SYSTEM OPERATING SYSTEMS CONTROL COMPUTERS' BASIC HOUSEKEEPING FUNCTIONS AND OFTEN DETERMINE HOW OTHER SOFTWARE PROGRAMS LOOK AND FEEL TO THE USER LONG DISMISSED AS AN INFERIOR OPERATING SYSTEM OS/2 HAS HAD STRONG SALES OVER THE LAST YEAR ALTHOUGH STILL MUCH LESS POPULAR THAN WINDOWS AMONG AVERAGE COMPUTER USERS IT IS OFTEN THE FIRST CHOICE OF SOFTWARE DEVELOPERS MATHEMATICIANS TECHIES AND OTHERS WHO DESIRE AN OPERATING SYSTEM MORE POWERFUL THAN WINDOWS MR BOHAC A GRADUATE STUDENT IN PHYSICAL CHEMISTRY AND AN OS/2 USER HIMSELF WAS COMMUNICATING ON THE INTERNET AND PRODIGY A POPULAR ONLINE SERVICE TWO YEARS AGO WHEN HE DISCOVERED THE FRUSTRATION OF OTHER OS/2 USERS WHO COULDN'T FIND APPLICATIONS FOR THE PRODUCT NOT PREPARED TO LEAVE THE RALEIGH AREA WHEN HE FINISHED GRADUATE SCHOOL LAST YEAR MR BOHAC DECIDED TO LAUNCH INDELIBLE BLUE A CATALOG THAT WOULD SELL OS/2 AND ITS APPLICATIONS HE AND HIS WIFE MS ANSARDI PLANNED AN ADVERTISING CAMPAIGN FOR THE SPRING BUT THEY BEGAN LETTING ONLINE USERS KNOW THEY WOULD BE SELLING OS/2 BY WAY OF DISCUSSION GROUPS ON PRODIGY OR THE INTERNET THE COUPLE WHO THOUGHT THEY WOULD MAKE A DECENT LIVING FROM THE CATALOG WERE SHOCKED BY THE HUGE DEMAND BY THE TIME OUR FIRST PRINT ADS APPEARED IN APRIL OF LAST YEAR WE WERE ALREADY OUT OF OUR FIRST 3000 CATALOGS AND HAD TO REPRINT MS ANSARDI RECALLS EVERYBODY ALREADY KNEW ABOUT US FROM THE INTERNET AND ONLINE SERVICES THE COUPLE GOT A BOOST FROM A JUNE RELEASE OF OS/2 THAT WAS POPULAR AND A LATER RELEASE OF WINDOWS NT THAT PROVED DISAPPOINTING THEY DID A JUNE RUN OF 5000 CATALOGS THAT ALSO DISAPPEARED QUICKLY SINCE THEN THEY HAVE MERELY BEEN PRINTING PRODUCT LISTS IN RUNS OF 10000 TO KEEP UP WITH DEMAND THEY CAME OUT WITH 25000 NEW CATALOGS THIS MONTH THAT ARE ALSO MOVING QUICKLY MS ANSARDI SAYS AVERAGE MONTHLY SALES SINCE LAST MARCH HAVE BEEN ABOUT 250000 SHE ADDS THAT INDELIBLE BLUE SHOULD EASILY HAVE REVENUE OF BETWEEN 5 MILLION AND 10 MILLION IN 1994 INDELIBLE BLUE STILL USES SOME PRINT ADS BUT MOSTLY RELIES ON ONLINE WORDOFMOUTH TO GENERATE SALES THE CYBERSPACE COMMUNITY FROWNS ON ACTUAL ONLINE ADVERTISING OVER THE INTERNET USUALLY GREETING IT WITH HOSTILITY MR PIGNATELLI HASN'T RUN A SINGLE PRINT AD SINCE SHORTLY AFTER HE OPENED THE CORNER STORE IN 1988 LIKE INDELIBLE BLUE THE CORNER STORE GENERATES SALES THROUGH MESSAGES AND CONVERSATIONS TRANSMITTED ONLINE IN THE CORNER STORE'S CASE MAINLY VIA COMPUSERVE MR PIGNATELLI WHO DESCRIBES HIMSELF AS AN EXPERT ON ARTIFICIAL INTELLIGENCE STARTED WITH AN ACTUAL STOREFRONT ON A LOCAL CORNER BUT SOON CLOSED IT ABOUT 95 OF OUR WALKIN SOFTWARE SALES WERE ONLINE HE SAYS LAST YEAR MR PIGNATELLI SAYS HE HAD SALES OF 1 MILLION UP FROM ABOUT 100000 IN 1989 HE SAYS SALES SKYROCKETED LAST JUNE AFTER THE NEW VERSION OF OS/2 WAS RELEASED AND HAVE BEEN INCREASING 10 TO 15 A MONTH SINCE THEN MY PROFIT MARGIN WENT WAY UP BECAUSE I STOPPED PAYING FOR ADVERTISING AND JUST WENT ONLINE AND ANSWERED PEOPLE'S QUESTIONS WHEN THEY WERE HAVING PROBLEMS WITH OS/2 SAYS MR PIGNATELLI THAT'S HOW I GET CUSTOMERS COMPUTER SPECIALISTS SAY THE CORNER STORE AND INDELIBLE BLUE HAVE TWO ADVANTAGES OVER TRADITIONAL SOFTWARE RETAILERS BECAUSE THEY OPERATE IN AN ELECTRONIC MILIEU THEY ARE ABLE TO RESPOND VERY QUICKLY TO DEMAND AND THEY HAVE THEIR FINGERS ON THE PULSE OF THEIR MARKET THEY ARE ALSO THE FIRST TRUE CYBERSPACE STORES THAT I'M AWARE OF SAYS JOHN SOYRING A SPOKESMAN FOR IBM'S PERSONAL SOFTWARE PRODUCTS DIVISION BASED IN AUSTIN TEXAS WE ARE LEARNING A LOT FROM THEM BECAUSE THEY ESTABLISHED THESE NEW CHANNELS ADDS MR SOYRING CYBERSPACE CHANNELS ARE GROWING SO RAPIDLY THAT I THINK IT WOULD BE A MISTAKE FOR OTHER COMPANIES NOT TO LOOK CLOSELY AT THEM THE TRADITIONAL SOFTWARE STORE WON'T DISAPPEAR ANYTIME SOON OF COURSE MANY COMPUTER USERS STILL AREN'T COMFORTABLE USING ONLINE SERVICES ANALYSTS SAY IT WILL BE FIVE TO 10 YEARS BEFORE ONLINE RETAILING DOMINATES THE SOFTWARE MARKET MANY TRADITIONAL RETAILERS ARE COOL TO THE IDEA OF ONLINE VENDING IT'S NOT OUR NATURE TO SELL PRODUCTS IN A DIRECT MAIL OR ONLINE ENVIRONMENT SAYS MARK DOBBERSTEIN A SENIOR BUYER FOR SOFTWARE ETC STORES INC A LARGE RETAIL CHAIN BASED IN EDINA MINN NONETHELESS MR PIGNATELLI THINKS TRADITIONAL SOFTWARE RETAILERS IGNORE CYBERSPACE AT THEIR PERIL SOFTWARE CONSUMERS ARE VERY WILY AND COMPANIES CONTINUALLY UNDERESTIMATE THEM HE SAYS THE BIG COMPANIES WILL ALL HAVE TO PAY ATTENTION TO THIS BECAUSE THE SOFTWARE INDUSTRY WILL END UP LOOKING LIKE THE BANKING INDUSTRY EVERY TRANSACTION WILL OCCUR ELECTRONICALLY 9401170013 940117 SHANGHAI IS AIRING ITS DIRTY LAUNDRY ON TALK RADIO HOSTS TAKE CALLS AND OFFER ADVICE EVEN ABOUT SEX BUT POLITICS IS A NASTY WORD BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA A COMMUNIST PARTY CADRE NAMED XU HAS BEEN DIVORCED THREE TIMES THE REASON HE TELLS SHANGHAI ON A CALLIN RADIO SHOW IS THAT HIS PENIS IS TOO SMALL I'M A VERY POOR MAN I SPENT 2300 ALMOST ALL OF MY SAVINGS TO KEEP THEM HAPPY MR XU EXPLAINS TO THE SHOW'S HOSTESS WEI LAN BUT HE SAYS OF HIS ANATOMICAL DEFICIENCY THEY CAN'T BE SATISFIED STILL I'M THINKING OF MARRYING A FOURTH WOMAN I CAN'T GO A DAY WITHOUT SEX WEI LAN OFFERS SOME OF HER TRADEMARK ADVICE YOU ABSOLUTELY MUST NOT MARRY A FOURTH WOMAN SHE SAYS YOU THINK YOU'RE A POOR MAN THINK OF THE POOR WOMEN WHO MARRY MEN LIKE YOU SO GOES THE ALLDAY ALLNIGHT OUTPOURING OF NEUROSES ON EAST RADIO WHERE CHINA'S LARGEST CITY AIRS ITS DIRTY LAUNDRY IN A SOCIETY KNOWN FOR PURITANICAL SQUEAMISHNESS WHERE LOVERS STILL SHY AWAY FROM USING THE WORD LOVE AND A RECENT NATIONAL SURVEY SHOWED THAT 60 OF THE POPULATION IS OFTEN OR SOMETIMES NAKED DURING SEX THE PUBLIC AIRWAVES NOW OFFER AN OUTLET FOR YEARS PERHAPS CENTURIES OF PENTUP ANGST SHANGHAI TALK RADIO 792 AM HAS BECOME PSYCHIATRIST INTERNIST AND PRIEST TO THE TROUBLED AND A CONTINUOUS SOAP OPERA FOR EVERYBODY ELSE TUNE IN AT NIGHT TO HEAR CRIMINALS CONFESSING THEIR CRIMES CONCUBINES CURSING THEIR RIVALS AND STUDENTS PONDERING SUICIDE BEFORE FINAL EXAMS NOBODY CAN LAY A VERBAL FINGER ON DENG XIAOPING DISCUSSIONS OF DEMOCRACY REMAIN OFFLIMITS BUT TALK RADIO OPENS A WINDOW ON CHINA'S SOCIAL CHANGE CALLERS RANGE FROM THE MERELY SELFINDULGENT TO BLATANTLY IDDRIVEN SO MUCH FOR CHINA'S PAST EFFORTS TO CREATE SELFLESS SOCIALISTS ONE WOMAN A SECRETARY CALLS IN TO DESCRIBE HER ANGER AT HER BOSS WITH WHOM SHE IS SLEEPING HE SPENDS ALMOST ALL HIS NIGHTS AND WEEKENDS AT HOME WITH HIS WIFE AND CHILDREN SHE COMPLAINS I'M ALSO HIS LOVER BUT I SEE HIM ONLY DURING THE DAY WHY WON'T HE SPEND MORE TIME WITH ME THERE TO MULL SUCH QUESTIONS IS A GROUP OF GOVERNMENTAPPOINTED TALKSHOW HOSTS AT THE TOP OF THE RATINGS THE ACERBIC WEI LAN HER SHOW RUNS BACK TO BACK WITH THE PROGRAM HOSTED BY THE ALSO POPULAR WANG WEI WHO BY HIS ACCOUNT HAS NEVER MET A PROBLEM HE COULDN'T SOLVE THEY BOTH SEEM ACUTELY SENSITIVE THAT TALKRADIO HOSTS ENJOY UNCERTAIN JOB TENURE PARTICULARLY IF THEIR PROGRAMS ATTRACT TOO MUCH ATTENTION THUS THEY ARE CAREFUL TO MELD POP PSYCHOLOGY WITH DEMANDS FOR FILIAL PIETY AND LENINIST COMMON SENSE PUT ANOTHER WAY THEIRS IS A PARTY LINE MR WANG HAS A SHOWBUSINESS PEDIGREE DATING BACK TO HIS SERVICE IN THE PEOPLE'S LIBERATION ARMY WHERE HE ACTED IN A TROUPE AND STAGED PLAYS ABOUT REAL PEOPLE IN REALLIFE SITUATIONS CURRENTLY ON THE SIDE HE APPEARS WEEKLY ON A LAWANDORDER TELEVISION PROGRAM CALLED TOPICS IN PUBLIC SECURITY THIS PARTICULAR NIGHT HE SHUFFLES INTO THE EAST RADIO OFFICE AT 945 JUST IN TIME FOR HIS 10 PM RADIO GIG HE SCURRIES AROUND IN HIS MILITARY BOOTS AND BLACK LEATHER BELLBOTTOMS IN SEARCH OF A PACK OF DOUBLE HAPPINESS CIGARETTES HE ISN'T ALLOWED TO SMOKE IN THE STUDIO BUT HE LIKES TO DANGLE THEM FROM HIS LIPS THEN HE SETTLES HIMSELF IN FRONT OF THE MICROPHONE WE CAN ALL HAVE A SOLITARY FEELING IN THE BIG CITY HE BEGINS IN A BARONIAL RADIOVOICE LIGHT JAZZ TRAILING AWAY IN THE BACKGROUND WE SOMETIMES DON'T NEED MUCH TO FEEL WELCOMED A FLOWER A LEAF A LETTER YOU CAN ALSO CALL SOMEONE AND THAT'S WHY MY LINES ARE OPEN THE SWITCHBOARD LIGHTS UP A 21YEAROLD IDENTIFIES HIMSELF AS ZHOU AND TELLS WANG WEI OF HIS LOST CHILDHOOD AT AGE 10 HE WAS KICKED OUT OF THE HOUSE BY HIS MOTHER AFTER HE PAWNED HER FOOD RATION COUPONS IN THE DEAD OF WINTER BY 15 HE WAS STEALING BICYCLES I WAS ARRESTED ONCE HE SAYS BREATHING HEAVILY BUT THEY LET ME GO WHEN I TRIED TO CUT MY OWN VEINS WHEN I GOT OUT I DID VERY BAD THINGS I CUT PEOPLE LITTLE ZHOU YOU DID WHAT WANG WEI ASKS I CUT PEOPLE I STABBED THEM LITTLE ZHOU WHY ARE YOU CALLING TO TELL ME THIS TODAY I'M TIRED OF LIFE HE SAYS NOW SOBBING WHEN I SAW THE BLOOD FROM MY VEINS I WAS RELIEVED I GOT PLEASURE FROM SEEING BLOOD TODAY I WANTED TO KILL A MAN WHO GAVE ME FIVE APPLES INSTEAD OF SIX AT THE MARKET I PAID FOR SIX LITTLE ZHOU IT'S IMPORTANT NOT TO HAVE SUCH IMPULSES YOU NEED TO CONTROL YOURSELF BUT I'M A MADMAN YOU'RE JUST CONFUSED TRY TO BE A GOOD MAN GO LISTEN TO KARAOKE GET A GOOD DINNER THE NEXT TIME YOU GET SUCH AN IMPULSE COUNT TO 10 AND THINK ABOUT THE RESULT ON HER SHOW NIGHT TALK WEI LAN TAKES THE MIKE A MISS CHEN CALLS TO EXPRESS CONCERN ABOUT HER FIANCE WHO WAS ARRESTED THREE WEEKS BEFORE SHE DIDN'T BELIEVE HE HAD DONE ANYTHING WRONG AND SHE HASN'T BEEN INFORMED ABOUT ANY INDICTMENT I MISS HIM VERY MUCH AND I WANT HIM BACK SHE SAYS WHY DON'T YOU GO TO THE PUBLIC SECURITY BUREAU AND ASK WHY HE WAS PUT IN JAIL MS WEI SAYS THAT'S RIGHT MS WEI REPLIES IF HE WAS ARRESTED THEN OF COURSE HE VIOLATED CHINESE LAWS MAYBE YOU SHOULD LOOK FOR ANOTHER HUSBAND NOT ALL OF EAST RADIO'S PROGRAMMING SENDS CALLERS TO THE PHONES ONE AFTERNOON SHOW TODAY'S NEW TOPIC RECENTLY DELVED INTO THE PROBLEM OF TRAFFIC CONGESTION FOR THE 30TH TIME IN THREE MONTHS TRAFFIC POLICE LED A TWOHOUR DISCUSSION ON HOW TO KEEP SIDEWALKS FREE OF CLUTTER MORE COMMON HOWEVER ARE THE LENGTHY DIALOGUES ABOUT FAMILY SPATS THIS IS ALSO REFERRED TO AS THE ONE BED TWO QUILT PHENOMENON OR WIVES WHO WON'T SLEEP WITH THEIR HUSBANDS A MR QIAN PHONES WANG WEI TO TELL OF HIS AND HIS WIFE'S PLANS TO MOVE INTO A NEW HOME AND LEAVE HIS NAGGING MOTHER BEHIND MY WIFE AND MY MOTHER FIGHT EVERY DAY MY WIFE TAKES IT OUT ON ME HE SAYS MY WIFE TOLD ME THAT WE MOVE OUT TOGETHER OR SHE MOVES OUT ALONE I'M NOW 40 YEARS OLD SO I THINK I CAN LIVE OUTSIDE MY MOTHER'S HOUSE MR WANG CAUTIONS AGAINST IT THERE'S AN OLD CHINESE SAYING THE PRIME MINISTER'S HEART IS BIG ENOUGH TO SAIL A SHIP IN' HE SAYS YOUR MOTHER IS YOUR PRIME MINISTER SHE'S THE ONLY ONE WHO HAS THE WHOLE FAMILY IN HER HEART NOT ALL CALLERS ARE SATISFIED WITH SUCH ADVICE SO PAMELA PAK A HONG KONG AUTHOR AND TALKSHOW HOSTESS IN THE BRITISH COLONY TRIED A DIFFERENT APPROACH WHEN BEIJING BROADCASTING STATION OFFERED HER A NIGHTTIME SLOT LAST SUMMER HOSTS MS PAK SAYS ALWAYS SAY KIDS SHOULD LISTEN TO THE PARENTS WIVES SHOULD MAKE THE MARRIAGE WORK BUT IF YOU JUST ANSWER ACCORDING TO CHINESE VALUES AND GOVERNMENT GUIDANCE PEOPLE WILL GO CRAZY THEY HAVE NO VALUES AFTER MAO CHINA REALLY NEEDS PSYCHOTHERAPY MAYBE SO BUT SHE WON'T BE THE ONE TO GIVE IT BEFORE SHE HAD FINISHED HER SECOND MONTH ON THE AIR THE MINISTRY OF RADIO FILM AND TELEVISION CANCELED HER SHOW MS PAK CAN BUT SPECULATE ON THE CAUSE IT MAY HAVE BEEN THE ARMY OFFICER WHO CALLED TO COMPLAIN THAT SINCE THE 1989 ARMY CRACKDOWN ON PROTESTERS IN BEIJING HE HASN'T BEEN ABLE TO GET A DATE OR MAYBE IT WAS THE CONVICT WHO MANAGED TO PHONE FROM PRISON TO SAY THAT HE STILL STANDS FIRM ON HUMAN RIGHTS WHATEVER IT WAS THE GOVERNMENT DECIDED THEY JUST DIDN'T LIKE ME WANG WEI MAY HAVE HAD THAT LESSON IN MIND WHEN ASKED TO ANALYZE THE PENIS ENVY UNREQUITED LOVE AND JUVENILE DELINQUENCY THAT FILLS HIS AIR TIME I REFER YOU TO THE SELECTED WORKS' OF COMRADE DENG XIAOPING HE TELLS AN INTERVIEWER TAKING A PHANTOM DRAG ON HIS DOUBLE HAPPINESS WE'RE ALL CONCERNED WITH SPIRITUAL CIVILIZATION MATERIAL CIVILIZATION AND THE CARRYING OUT OF SOCIALIST CONSTRUCTION 9401170012 940117 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT GTE NORTH INC 250 MILLION OF 10YEAR NONCALLABLE PAPER VIA COMPETITIVE BIDS VIRGINIA ELECTRIC AND POWER CO 125 MILLION OF 30YEAR BONDS WITH A 10YEAR CALL OPTION VIA COMPETITIVE BID ADVANCED TISSUE SCIENCES INC 25 MILLION SHARES VIA MONTGOMERY SECURITIES ALLIED WASTE INDUSTRIES INC 75 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA CS FIRST BOSTON BANCO NACIONAL DE COMERCIO EXTERIOR SNC 1 BILLION OF 10YEAR GLOBAL BONDS VIA GOLDMAN SACHS & CO AND MERRILL LYNCH & CO CELESTIAL SEASONINGS INC 425000 SHARES VIA PAINEWEBBER INC CMG INFORMATION SERVICES INITIAL 13 MILLION SHARES VIA PIPER JAFFRAY INC CHEESECAKE FACTORY INC 18 MILLION SHARES VIA MONTGOMERY SECURITIES AND ALEX BROWN & SONS INC EASTGROUP PROPERTIES TWO MILLION SHARES VIA KIDDER PEABODY & CO EQUITY RESIDENTIAL PROPERTIES TRUST FOUR MILLION COMMON SHARES VIA MERRILL LYNCH ESMOR CORRECTIONAL SERVICES INITIAL 833333 SHARES VIA JANNEY MONTGOMERY SCOTT FAMILY RESTAURANTS INC 400 MILLION TWOPART OFFERING VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP GABLES PROPERTIES TRUST INITIAL 76 MILLION COMMON SHARES VIA MERRILL LYNCH GAMETEK INC INITIAL 21 MILLION SHARES VIA OPPENHEIMER GLIMCHER REALTY TRUST INITIAL 158 MILLION SHARES OF BENEFICIAL INTEREST VIA PAINEWEBBER INC GREAT LAKES AVIATION LTD INITIAL 25 MILLION SHARES VIA ALEX BROWN & SONS HOST MARRIOTT CORP 175 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE LA T SPORTSWEAR INC INITIAL 12 MILLION SHARES VIA ROBINSONHUMPHREY MFS COMMUNICATIONS CO 400 MILLION OF 10YEAR SENIOR DISCOUNT NOTES VIA SALOMON BROTHERS INC PLANTRONICS INC INITIAL 36 MILLION SHARES VIA SMITH BARNEY SHEARSON INC SOUTHDOWN INC 13 MILLION SHARES VIA MERRILL LYNCH STANFORD TELECOMMUNICATIONS INC 13 MILLION SHARES VIA OPPENHEIMER & CO MASSACHUSETTS 200 MILLION OF SERIES A CONSOLIDATED LOAN OF 1994 GENERAL OBLIGATION BONDS VIA COMPETITIVE BID NORTH CAROLINA 400 MILLION OF SERIES 1994 CAPITALIMPROVEMENT BONDS VIA COMPETITIVE BID WASHINGTON SUBURBAN SANITARY DISTRICT MARYLAND 4355 MILLION OF VARIOUS 1994 IMPROVEMENT WATER SUPPLY SEWAGE DISPOSAL AND GENERAL CONSTRUCTION REFUNDING BONDS DUE 19942015 VIA COMPETITIVE BID PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCE AUTHORITY205 MILLION OF BONDS CONSISTING OF 180 MILLION OF TAXEXEMPT RESOURCE RECOVERY REVENUE BONDS AND 25 MILLION OF TAXABLE BONDS VIA GOLDMAN SACHS PHILADELPHIA PA 179035000 OF GAS WORKS REVENUE AND REFUNDING BONDS VIA A PAINEWEBBER INC GROUP NASSAU COUNTY NY 250 MILLION OF FGICINSURED GENERAL OBLIGATION BONDS DUE 19942016 VIA A SMITH BARNEY SHEARSON GROUP NEW YORK STATE DORMITORY AUTHORITY 180 MILLION OF BONDS FOR COLUMBIA UNIVERSITY DUE 19962010 2012 AND 2014 VIA A JP MORGAN SECURITIES INC GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 105375000 OF CATAWBA ELECTRIC REVENUE BONDS VIA A GOLDMAN SACHS GROUP SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 225940000 OF BONDS DUE 19972009 CONSISTING OF 173 MILLION FOR MEADADELANTO AND 52 MILLION FOR MEADPHOENIX VIA A CS FIRST BOSTON GROUP 9401170010 940117 CHOICE DRUG SEEKS SETTLEMENT TO STAY IN MEDICARE PROGRAM INWOOD NY CHOICE DRUG SYSTEMS INC SAID IT IS NEGOTIATING A SETTLEMENT WITH THE US ATTORNEY'S OFFICE IN PHILADELPHIA TO ALLOW THE COMPANY TO STAY IN THE MEDICARE PROGRAM DESPITE PAST CLAIMS PROBLEMS CHOICE DRUG SAID AN INTERNAL INVESTIGATION OF ITS FLORIDA UNIT IDENTIFIED ABOUT 19 MILLION OF REIMBURSEMENTS AFFECTED BY DOCUMENTATION PROBLEMS SUCH AS FALSE AUTHORIZATION SIGNATURES ON MEDICARE CLAIM FORMS IN AUGUST THE COMPANY SAID IT DISCOVERED IN THE INTERNAL PROBE THAT A FORMER OFFICIAL SIGNED SOME CLAIMS WITHOUT PROPER AUTHORIZATION MEDICARE REIMBURSEMENTS MAKE UP ABOUT 10 TO 15 OF CHOICE DRUG'S BUSINESS CHOICE PROVIDES PHARMACEUTICALS AND MEDICAL EQUIPMENT AND DISPOSABLE PRODUCTS TO HEALTHCARE FACILITIES AND THROUGH MAIL ORDER IT ALSO MANAGES HOSPITAL PHARMACIES FRANK MANDELBAUM CHOICE PRESIDENT SAID HE BELIEVES AN AGREEMENT WITH THE GOVERNMENT WILL COST THE COMPANY AN UNDETERMINED AMOUNT OF MONEY BUT HE SAID HE DIDN'T KNOW WHETHER THE AMOUNT WOULD AFFECT EARNINGS A PAYMENT MAY BE COVERED UNDER THE COMPANY'S INSURANCE POLICY HE SAID MR MANDELBAUM SAID NO SENIOR MANAGEMENT KNEW OF THE DOCUMENTATION PROBLEMS AND THE OFFICIAL AT THE UNIT WHO WAS INVOLVED HAS BEEN FIRED THIS WASN'T A CASE OF TRYING TO DEFRAUD THE GOVERNMENT OF MONEY MR MANDELBAUM SAID THE FORMER OFFICIAL TOOK A SHORTCUT WHICH CREATED A PROBLEM HE SAID SEPARATELY CHOICE REPORTED ITS NET LOSS FOR THE THIRD QUARTER ENDED NOV 30 NARROWED TO 212594 OR THREE CENTS A SHARE FROM 11 MILLION OR 17 CENTS A SHARE A YEAR EARLIER SALES ROSE 12 TO 137 MILLION FROM 122 MILLION 9401170009 940117 GM SETTLES STRIKE AT LOUISIANA PLANT SPARKED BY EFFORT TO BOOST PRODUCTIVITY BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP AND THE UNITED AUTO WORKERS REACHED A TENTATIVE SETTLEMENT TO END A STRIKE AT GM'S SHREVEPORT LA PICKUPTRUCK PLANT THAT WAS CALLED TO PROTEST THE AUTO MAKER'S EFFORT TO BOOST PRODUCTIVITY BUT THE SHREVEPORT SETTLEMENT DOESN'T NECESSARILY MEAN AN END TO GM'S LATEST ROUND OF LABOR TROUBLES UAW VICE PRESIDENT STEPHEN P YOKICH THE UNION'S TOP BARGAINER AT GM SAID LAST WEEK THAT ONCE THE SHREVEPORT STRIKE WAS SETTLED HE WOULD TURN UP PRESSURE ON GM'S PARTS OPERATIONS TO BACK AWAY FROM THEIR DEMANDS TO GET MORE OUTPUT WITH FEWER WORKERS GM WOULDN'T RELEASE DETAILS OF THE SETTLEMENT REACHED AT 145 AM SUNDAY THE UAW LOCAL THAT REPRESENTS ABOUT 2300 WORKERS AT SHREVEPORT HAD CALLED THE WALKOUT LAST TUESDAY TO PROTEST GM'S MOVE TO BOOST PRODUCTION OF COMPACT CHEVROLET S10 AND GMC SONOMA PICKUPS WORKERS NOW ARE EXPECTED TO RETURN TO THEIR JOBS TOMORROW AFTER A RATIFICATION VOTE SCHEDULED FOR TODAY ALL OF GM'S US PLANTS ARE SHUT TODAY IN OBSERVANCE OF MARTIN LUTHER KING'S BIRTHDAY THE TERMS OF THE SHREVEPORT SETTLEMENT PROMISE TO BE A BENCHMARK FOR GM IN FUTURE DISPUTES WITH THE UAW OVER PRODUCTIVITY AND MANY SUCH DISPUTES ARE LIKELY AS PRESIDENT JOHN F SMITH JR PUSHES TO MAKE NORTH AMERICAN OPERATIONS PROFITABLE THIS YEAR GM SPENDS NEARLY 800 MORE TO ASSEMBLE A VEHICLE THAN RIVAL FORD MOTOR CO ACCORDING TO A STUDY BY THE CONSULTING FIRM HARBOUR & ASSOCIATES MR SMITH HAS VOWED TO CLOSE THAT GAP BY 1996 AS GM'S US FACTORIES GET NEW BETTERDESIGNED PRODUCTS DURING THE NEXT TWO TO THREE YEARS SUCH AS THE REDESIGNED S10 PICKUPS BUILT AT SHREVEPORT LOCAL MANAGERS ARE EXPECTED TO USE THE MODEL CHANGE TO MAKE BIG STRIDES TOWARD MATCHING FORD PRODUCTIVITY LEVELS BUT UAW LEADERS SAID THE SHREVEPORT STRIKE WAS A WARNING TO GM NOT TO PUSH TOO FAR TOO FAST WITH PLANTLEVEL EFFORTS TO SPEED PRODUCTION WHILE SIMULTANEOUSLY TRIMMING THE HOURLY WORK FORCE A GM SPOKESWOMAN WOULDN'T SAY YESTERDAY WHETHER GM AGREED TO HIRE MORE WORKERS OR SLOW THE PRODUCTION SPEED AS PART OF THE SHREVEPORT AGREEMENT BUT SHE INSISTED THE AGREEMENT ALLOWS US TO BE MORE EFFICIENT AND PRODUCE THE VOLUME OF TRUCKS WE NEED ANALYSTS HAD ESTIMATED THAT THE SHREVEPORT STRIKE WOULD COST GM ABOUT 2 MILLION TO 3 MILLION A DAY IN LOST PRODUCTION OR ABOUT 8 MILLION TO 10 MILLION FOR THE DURATION OF THE WALKOUT BUT THE COSTS COULD BE GREATER IF THE UAW DECIDES TO SHUT DOWN A PARTS PLANT A STRIKE AT A KEY PARTS FACTORY COULD QUICKLY IDLE SEVERAL ASSEMBLY PLANTS THE POTENTIAL FOR CONFLICT OVER PRODUCTIVITY IN GM'S PARTS OPERATIONS HAS LOOMED GREATER IN RECENT WEEKS SINCE JT BATTENBERG III THE GROUP VICE PRESIDENT IN CHARGE OF GM'S AUTOMOTIVE COMPONENTS GROUP WORLDWIDE BEGAN BLUNTLY AND PUBLICLY STATING THAT ROUGHLY 20 OF GM'S REMAINING US PARTS OPERATIONS COULD FACE SHUTDOWN OR SALE IF THEY DON'T ACHIEVE COMPETITIVE PROFIT AND PRODUCTIVITY TARGETS BY THE END OF THIS YEAR MANAGERS AT GM PARTS PLANTS HAVE ANGERED UAW LEADERS BY PUSHING HARD TO GET PRODUCTIVITY CONCESSIONS IN LOCAL CONTRACT TALKS MR YOKICH HIMSELF UNLEASHED AN ANGRY TIRADE AT MR SMITH LAST MONTH DURING THE SIGNING CEREMONY FOR THE UAWGM NATIONAL AGREEMENT IN PART TO VENT HIS DISPLEASURE WITH MANAGEMENT BARGAINING TACTICS AT A BIG GM PARTS OPERATION IN SANDUSKY OHIO 9401170008 940117 CORRECTIONS & AMPLIFICATIONS LANCIT MEDIA PRODUCTIONS LTD THE PRODUCER OF THE READING RAINBOW SERIES ON PUBLIC BROADCASTING SERVICE WENT PUBLIC IN 1991 A PAGEONE ARTICLE THURSDAY SAID INCORRECTLY THAT AT THE TIME OF THE INITIAL PUBLIC OFFERING LANCIT HAD A PBS COMMITMENT FOR ANOTHER SERIES THE PUZZLEWORKS LANCIT DIDN'T RECEIVE THE COMMITMENT FOR THE PUZZLEWORKS UNTIL AFTER THE INITIAL PUBLIC OFFERING VICE PRESIDENT AL GORE'S TYPING IN AN ONLINE FORUM WAS MISCHARACTERIZED IN AN ARTICLE FRIDAY BASED ON A PARTIAL TRANSCRIPT A REVIEW OF THE ENTIRE TRANSCRIPT SHOWS RELATIVELY FEW TYPOGRAPHICAL ERRORS FORD MOTOR CO'S 40 OWNERSHIP IN EXCEL INDUSTRIES INC WAS DILUTED OVER TIME TO A 24 STAKE AS EXCEL SOLD NEW EQUITY AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT FORD SOLD EXCEL SHARES 9401170007 940117 CROSS TIMBERS OIL PURCHASES FORT WORTH TEXAS CROSS TIMBERS OIL CO SAID IT COMPLETED 284 MILLION IN ACQUISITIONS INCREASING ITS WORKING INTEREST IN AN OIL AND GASPRODUCING FIELD IN WEST TEXAS THE OIL AND NATURAL GAS COMPANY SAID IT NOW OWNS A 915 WORKING INTEREST IN THE PRENTICE NORTHEAST UNIT WHICH IT WILL OPERATE CROSS TIMBERS SAID IT ACQUIRED A 294 WORKING INTEREST FROM A UNIT OF AMOCO CORP AND A 132 WORKING INTEREST FROM A CLOSELY HELD COMPANY DIDN'T IDENTIFY 9401170006 940117 FOOTWEAR FIRMS LIKELY TO POST LACKLUSTER NET SOME MAJOR MANUFACTURERS HURT BY FASHION MOVE SMALLER FIRMS PROSPER BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL MAJOR ATHLETIC FOOTWEAR MANUFACTURERS STUNG BY THE RECENT FASHION SWITCH FROM SNEAKERS TO BOOTS WILL REPORT DISAPPOINTING EARNINGS FOR THE LATEST QUARTER ANALYSTS PREDICT BUT THE FASHION CHANGE BUOYED PROFITS FOR THE MAKERS OF RUGGED OUTDOOR GEAR THEY ADD ANALYSTS ESTIMATE EARNINGS FELL 9 AT REEBOK INTERNATIONAL INC AND 24 AT STRIDE RITE CORP NIKE INC HAS ALREADY REPORTED A 31 EARNINGS DECLINE AND LA GEAR INC SIGNALED LAST WEEK THAT IT WOULD REPORT A LOSS MEANWHILE PROFITS CLIMBED AN ESTIMATED 43 AT TIMBERLAND CO WHICH SPECIALIZES IN OUTDOOR WEAR AND 24 AT NINE WEST GROUP INC A CASUAL LEATHER SHOE CONCERN THE FASHION CHANGE CAUGHT MANY SNEAKER MAKERS FLATFOOTED SAY ANALYSTS FOR A LONG TIME THE NEED FOR CASUAL WEAR WAS SATISFIED BY THE TECHNICALLY ADVANCED SNEAKER SAYS LEE ALLEN PRESIDENT OF ALLEN FINANCIAL ADVISORS AN INVESTMENT CONSULTING FIRM IN BOSTON BUT TAKING A CLUE FROM THEIR EUROPEAN COUNTERPARTS A NUMBER OF US LEATHER SHOE MAKERS GOT MORE CREATIVE IN DESIGNING AND ADDING SUCH HIGHTECH FEATURES AS WATERPROOFING TO FOOTWEAR AND APPAREL HE SAYS THE NEW FASHION WIDELY EMBRACED BY YOUNGER CONSUMERS HIT MANY OF THE BIG SNEAKER MANUFACTURERS IN BREADANDBUTTER CATEGORIES SUCH AS BASKETBALL SHOES NOTES JOSIE ESQUIVEL ANALYST FOR LEHMAN BROTHERS INC IN ANNOUNCING A 31 DROP IN NET INCOME FOR THE SECOND QUARTER ENDED NOV 30 NIKE SAID LAST MONTH THAT US SALES OF ITS CORE BASKETBALL SHOES FELL 25 THE BEAVERTON ORE COMPANY REPORTED PROFIT OF 523 MILLION OR 69 CENTS A SHARE DOWN FROM 76 MILLION OR 98 CENTS A SHARE A YEAR EARLIER REVENUE SLID 8 TO 8058 MILLION FROM 8758 MILLION LIKEWISE REEBOK IS EXPECTED TO REPORT THAT FOURTHQUARTER EARNINGS FELL TO 54 CENTS A SHARE FROM 59 CENTS A SHARE A YEAR EARLIER RECKONS MS ESQUIVEL SALES SHE PROJECTS SLIPPED 5 TO 616 MILLION FROM 642 MILLION SALES OF REEBOK'S BASKETBALL SHOES DESPITE A CADRE OF PROFESSIONAL ATHLETE ENDORSEMENTS IS EXPECTED TO BE DOWN SIGNIFICANTLY AS WELL SHE SAYS THE CATEGORY TO SOME EXTENT HAS ALSO LOST ZIP AS SALES OF THE COMPANY'S CROSSTRAINING SHOES HAVE GAINED MOMENTUM SHE ADDS ATTEMPTING TO REGROUP IN THE WAKE OF A SHIFT IN CONSUMER PREFERENCE REEBOK OF STOUGHTON MASS EARLIER THIS MONTH RESHUFFLED ITS MANAGEMENT ANOTHER ATHLETIC SHOE MANUFACTURER THAT HAS BLAMED SHIFTING CONSUMER TASTES IS LA GEAR BASED IN SANTA MONICA CALIF THE COMPANY LAST WEEK ESTIMATED ITS FISCAL FOURTHQUARTER LOSS FROM CONTINUING OPERATIONS AT UP TO 16 MILLION NOTING AMONG OTHER THINGS THAT EXCESS INVENTORIES CONTINUE TO DEPRESS EARNINGS THE COMPANY DIDN'T PROVIDE A NET LOSS ESTIMATE BUT GARY JACOBSON AN ANALYST FOR KIDDER PEABODY INC ESTIMATES A LOSS OF 75 CENTS A SHARE FOR THE PERIOD ENDED NOV 30 BUT THE LOSS WOULD BE NARROWER THAN THE 114 A SHARE IN THE YEAREARLIER QUARTER THANKS IN PART TO STRONG SALES OF CHILDREN'S SHOES LA GEAR'S SALES ARE EXPECTED TO HAVE CLIMBED 20 TO 95 MILLION FROM 70 MILLION IN THE YEAREARLIER QUARTER WHILE THE SWEEPING SHIFT TOWARD OUTDOOR FOOTWEAR IMPACTED MANY ATHLETIC FOOTWEAR MAKERS AN UNDERCURRENT OF SMALLER FASHION SHIFTS AFFECTED SALES OF SOME OTHER FIRMS STRIDE RITE CAMBRIDGE MASS WHOSE PLAINVANILLA KEDS SNEAKERS HAVE LOST SOME OF THEIR POPULARITY IS EXPECTED TO REPORT EARNINGS OF 20 CENTS A SHARE DOWN 24 FROM 26 CENTS A SHARE A YEAR AGO ESTIMATES LEHMAN BROTHERS' MS ESQUIVEL SALES HELPED BY THE ADDITION OF A LOONIE TOONS LOGO ON SOME OF THE COMPANY'S CHILDREN'S SHOES SHOULD CLIMB 2 TO 110 MILLION FROM 1076 MILLION SHE SAYS EVEN THOUGH IMPROVING SALES OF STRIDE RITE'S SPERRY TOPSIDER BOAT SHOES HAS BEEN A BIG CORPORATE GOAL THE BOAT SHOE DIVISION HAS BEEN A DRAG ON THE COMPANY'S PROFITS MS ESQUIVEL SAYS THE ISSUE IS WHAT THE OVERALL ATHLETIC FOOTWEAR INDUSTRY IS GOING TO DO AS A RESULT OF THE CONSUMER SHIFT SAID MR JACOBSON THE KIDDER PEABODY ANALYST MY GUESS IS THAT 1994 WILL BE A YEAR OF STABILIZATION AND 1995 WILL BE A YEAR OF VERY MODEST GROWTH FOR ATHLETIC SHOE MANUFACTURERS MEANWHILE OUTDOOR FOOTWEAR FIRMS CONTINUE TO MAKE STRIDES ALLEN FINANCIAL'S MR ALLEN PROJECTS THAT TIMBERLAND BASED IN HAMPTON NH WILL REPORT PERSHARE EARNINGS OF 63 CENTS UP 43 FROM 44 CENTS IN THE YEAREARLIER QUARTER HE PREDICTS SALES CLIMBED 41 TO 125 MILLION FROM 886 MILLION MR ALLEN PEGS PART OF THE TIMBERLAND'S SUCCESS TO THE FACT THAT CONSUMERS NOW CAN BUY THE COMPANY'S TIMBERLAND SHOES AT TWO BIG RETAIL CHAINS NORDSTROM AND DILLARD DEPARTMENT STORES THE TIMBERLAND BRAND ALSO GOT A BOOST FROM A MAJOR ADVERTISING CAMPAIGN LAUNCHED IN THE SECOND HALF OF 1993 ALTHOUGH THE COMPANY DOESN'T DISCLOSE ITS ADVERTISING BUDGET MR ALLEN ESTIMATES TIMBERLAND SPENT 18 MILLION ON ADS 50 MORE THAN IN 1992 AS IT EXPANDED ITS MARKETING EFFORTS TO 30 REGIONS IN 1993 FROM THREE THE PREVIOUS YEAR SALES GAINS ALSO CAME AS A RESULT OF A PRICE CUT ON SOME SHOE LINES DUE TO IMPROVED MANUFACTURING EFFICIENCIES HE SAYS THE PREFERENCE FOR LEATHER SHOES PARTICULARLY AMONG WOMEN HAS BOOSTED NINE WEST GROUP'S RESULTS THE MANUFACTURER AND RETAILER BASED IN ST LOUIS AND STAMFORD CONN IS EXPECTED TO REPORT FOURTHQUARTER NET INCOME OF 36 CENTS A SHARE A 24 INCREASE FROM LAST YEAR'S 29 CENTS A SHARE SAYS MS ESQUIVEL FOURTHQUARTER SALES SHE SAYS SHOULD CLIMB 20 TO 142 MILLION FROM 1183 MILLION LAST YEAR THE REASON WOMEN STARTED WEARING SNEAKERS TO WORK WAS BECAUSE LEATHER SHOES WERE SO UNCOMFORTABLE SAYS MS ESQUIVEL BUT AS LEATHER SHOES HAVE BECOME MORE COMFORTABLE MORE WOMEN ARE COMMUTING TO WORK IN NINE WEST TYPE SHOES AMONG SMALLER ATHLETIC SHOE MAKERS KSWISS INC BASED IN CHATSWORTH CALIF IS EXPECTED TO REPORT FOURTHQUARTER EARNINGS OF 22 CENTS A SHARE COMPARED WITH 20 CENTS A YEAR AGO SAYS MARK FRIEDMAN AN ANALYST FOR GOLDMAN SACHS & CO MR FRIEDMAN SAYS THE EARNINGS GAIN CAME ON THE HEELS OF A SLIGHT INCREASE IN FOURTHQUARTER SALES ALTHOUGH THE FOURTH QUARTER ISN'T ITS BIGGEST SALES PERIOD KSWISS GOT A BOOST WHEN POPE JOHN PAUL II PURCHASED A PAIR OF KSWISS SHOES DURING HIS VISIT TO DENVER LAST AUGUST THE POPE WHO WORE THE SHOES DUE TO THE UNEVEN TERRAIN OF THE ROCKY MOUNTAINS ONLY STIPULATED THAT THE STANDARD WHITE LACINGS BE REPLACED WITH GOLD LACES 9401170005 940117 LEGAL BEAT CALLING US LAWYERS EXPLOITERS RUSSIANS SEEK TO REIN THEM IN BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SUCCESS HAS ITS PRICE ASK ANY AMERICAN LAWYER IN RUSSIA FEW WESTERN INTERESTS HAVE BEEN AS AGGRESSIVE AS US LAW FIRMS IN TRYING TO CAPITALIZE ON RUSSIA'S ECONOMIC REFORMS SINCE THE LATE 1980S A NUMBER OF LARGE US FIRMS HAVE OPENED OFFICES IN MOSCOW AND THEY HAVE BEEN HIGHLY SUCCESSFUL PARTLY BECAUSE THEY ARE STAFFED BY LOCAL RUSSIAN LAWYERS HIRED AT A FRACTION OF WHAT US LAWYERS MAKE NOW AMID GROWING ULTRANATIONALISM RUSSIAN LAW FIRMS HAVE BEEN COMPLAINING THAT THEY ARE INCREASINGLY GETTING CUT OUT OF THE ACTION AND WHILE NO ONE IS SUGGESTING TOTAL BANISHMENT THERE ARE PROPOSALS TO SHARPLY CURTAIL WHAT US FIRMS CAN DO TO HALT WHAT SOME VIEW AS THE EXPLOITATION OF THE RUSSIAN BAR RECENTLY YURI KALMYKOV RUSSIAN MINISTER OF JUSTICE ACCUSED WESTERN FIRMS OF RENTING PRESTIGIOUS OFFICES IN CENTRAL MOSCOW AND ST PETERSBURG AT MINIMAL RATES AND PAYING LOCAL LAWYERS MISERABLE WAGES ACCORDING TO A LETTER HE SENT TO THE INFLUENTIAL RUSSIAN COUNCIL OF MINISTRIES SPOKESMEN FOR US FIRMS DENY THOSE CHARGES NONETHELESS MR KALMYKOV A FORMER COMMUNIST PARTY MEMBER HAS CALLED ON RUSSIAN PRESIDENT BORIS YELTSIN TO ISSUE A SPECIAL DECREE THAT WILL CRACK DOWN ON MAJOR WESTERN LAW FIRMS THIS ISN'T THE FIRST TIME THAT US FIRMS HAVE HAD TROUBLE WHEN TRYING TO HANG OUT THEIR SHINGLES OVERSEAS UNTIL 1986 US FIRMS WERE FORBIDDEN FROM EVEN HAVING OFFICES IN JAPAN FOR INSTANCE AND THEY STILL CAN'T HIRE JAPANESE LAWYERS AS ASSOCIATES OR PARTNERS RECENTLY FRANCE APPROVED CHANGES THAT REQUIRE ALL FOREIGN LAWYERS TO TAKE ITS BAR EXAMINATION INCLUDING THOSE WHO DON'T EVEN PRACTICE BEFORE THE LOCAL COURTS IN THE US A FEW BIG STATES INCLUDING NEW YORK AND CALIFORNIA IMPOSE CERTAIN LIMITED RESTRICTIONS ON FOREIGN LAW FIRMS MOST STATES HOWEVER HAVE NO REGULATIONS CONCERNING LAWYERS FROM ABROAD US LAWYERS WITH OVERSEAS INTERESTS SEE A COMMON THREAD OF PROTECTIONISM RUNNING THROUGH THE COMPLAINTS FROM RUSSIA AND ELSEWHERE THE LOCAL BAR LIKE ANY OTHER LOCAL BAR DOESN'T WANT TO HAVE THE GOOD BUSINESS CREAMED OFF BY THE FOREIGNERS SAYS SARAH CAREY OF STEPTOE & JOHNSON A WASHINGTON FIRM WITH A MOSCOW OFFICE IN RUSSIA LAW IN GENERAL AND LAWYERS IN PARTICULAR HAVE HISTORICALLY GARNERED EVEN LESS RESPECT THAN IN THE US FOR ONE THING COMMERCIAL LAW DIDN'T EXIST UNDER A CENTRALLY PLANNED ECONOMY AND UNDER THE STALINIST REGIME LAWS WERE MORE LIKELY TO BE MADE AFTER THE FACT TO FIT THE CRIME AS A CAREER LAW WAS POORLY PAID AND POORLY RESPECTED BEFORE PEOPLE WERE SHOCKED WHEN GORBACHEV BECAME A LAWYER SAYS MARSHALL I GOLDMAN ASSOCIATE DIRECTOR OF THE RUSSIAN RESEARCH CENTER AT HARVARD UNIVERSITY BUT NOW US LAWYERS HAVE APPARENTLY TAUGHT THE RUSSIANS A VALUABLE LESSON SUDDENLY THEY SEE WHAT THEY COULD BE DOING AND THEIR REASONING IS IF WE ONLY COULD THROW OUT THE WESTERN LAWYERS SOME OF THAT BUSINESS WILL COME OUR WAY' SAYS MR GOLDMAN CERTAINLY SOME US LAWYERS WENT TO RUSSIA WITH ALTRUISTIC INTENTIONS MANY HAVE SPENT TIME TRAINING JUDGES HELPING FRAME A NEW CONSTITUTION OR DEVELOPING A NEW COMMERCIAL CODE US JUDGES ARE TEACHING RUSSIANS THAT BANKRUPTCY IS NOT NECESSARILY A BAD THING MUCH OF THE WORK IS BEING COORDINATED THROUGH A NONPROFIT AMERICAN BAR ASSOCIATION PROJECT IN CONJUNCTION WITH A GRANT FROM THE AGENCY FOR INTERNATIONAL DEVELOPMENT AMONG THE DOZEN OR SO PROFITSEEKING US FIRMS WITH OFFICES IN RUSSIA ARE BAKER & MCKENZIE AND COUDERT BROTHERS AND SEVERAL TEXAS FIRMS INCLUDING BAKER & BOTTS AND VINSON & ELKINS WITH ENERGY CLIENTS WHO HOPE TO HELP REVITALIZE THE HUGE RUSSIAN OIL AND GAS INDUSTRY ANOTHER US FIRM AKIN GUMP STRAUSS HAUER & FELD PLANS TO OPEN A RUSSIAN OFFICE THIS SUMMER PARTNER ROBERT STRAUSS A FORMER US AMBASSADOR TO MOSCOW VOICES CONCERN ABOUT RESTRICTIONS THE RUSSIANS HE SAYS NEED TO BE ENCOURAGING ANYTHING THAT ASSISTS IN OUTSIDE CAPITAL COMING INTO THAT COUNTRY AND LAW FIRMS ARE AN INTEGRAL PART OF THAT THE US FIRMS ACKNOWLEDGE THAT THEIR WAGES ARE LOW BY US STANDARDS ALTHOUGH ESTIMATES VARY WIDELY THE MEDIAN WAGE FOR RUSSIAN LAWYERS WORKING FOR BIG US FIRMS IS BELIEVED BY SOME OBSERVERS TO BE ABOUT 2000 A MONTH NOT MUCH MORE THAN WHAT A STARTING LAWYER AT A TOP NEW YORK FIRM MAKES IN A WEEK ALTHOUGH NO PRECISE FIGURES ARE AVAILABLE IT IS BELIEVED THAT US FIRMS IN RUSSIA BILL AT A SLIGHTLY LOWER RATE THERE THAN AT HOME THE DISPARITY ISN'T GREATER ONE US LAWYER SAYS BECAUSE THE COSTS OF OPENING AND OPERATING AN OFFICE IN RUSSIA ARE HIGH AS FOR WAGES PAID TO LOCAL LAWYERS THE AMERICANS GENERALLY CALL THE COMPENSATION GENEROUS THE LEVEL AT WHICH THE RUSSIAN LAWYERS ARE COMPENSATED PUTS ALL OF THEM IN THE TOP 1 OF RUSSIANS BY LOCAL STANDARDS SAYS JOHN HUHS A RUSSIA EXPERT AT THE NEW YORK FIRM OF LEBOEUF LAMB GREENE & MACRAE THEY ARE EXTRAORDINARILY WELLCOMPENSATED LEBOEUF LAMB HAS A POLICY OF PAYING PREVAILING WAGES REGARDLESS OF LOCATION ACCORDING TO MR HUHS WHEN RUSSIAN LAWYERS SPEND SUMMERS WORKING FOR THE FIRM IN NEW YORK HE SAYS THEY ARE PAID THE SAME AS THE AMERICANS UNDER MR KALMYKOV'S PROPOSED DECREE US LAWYERS WOULD BE BARRED FROM PROVIDING CONSULTING SERVICES ON RUSSIAN LAW AND FROM DOING WORK ON CERTAIN KINDS OF ARBITRATION CASES STILL OTHER TALK HAS BEEN OF A SYSTEM OF REGISTERING OR ACCREDITING FOREIGN LAWYERS THE PROPOSALS ARE NOW EXPECTED TO BE CONSIDERED BY THE NEW RUSSIAN PARLIAMANT AMERICANS SAY SUCH CURBS COULD HURT THE CONSULTING BAN COULD PREVENT ATTORNEYS FROM ADVISING ON CERTAIN ASPECTS OF MAJOR INTERNATIONAL TRANSACTIONS LIMITS ON ARBITRATION AN INCREASINGLY POPULAR WAY OF RESOLVING BUSINESS DISPUTES ALSO COULD BE DAMAGING SAYS EUGENE LAWSON PRESIDENT OF THE USRUSSIA BUSINESS COUNCIL AN UMBRELLA GROUP FOR US COMPANIES AND LAW FIRMS OPERATING IN RUSSIA ARBITRATION IS NEAR AND DEAR TO THE HEARTS OF A LOT OF LAW FIRMS HE SAYS A STATE JUDGE IN CALIFORNIA THREW OUT A 75 MILLION LIBEL AWARD AGAINST NEW YORK TIMES CO ON GROUNDS THAT THE JURY'S VERDICT IN OCTOBER WAS FACTUALLY INCONSISTENT AND EXCESSIVE THE CASE INVOLVED LEONARD M ROSS A BEVERLY HILLS BUSINESSMAN WHO CLAIMED HE WAS LIBELED IN 1988 ARTICLES PUBLISHED IN THE SANTA BARBARA NEWSPRESS OWNED BY THE TIMES CO THE JURY AWARDED 5 MILLION FOR DAMAGE TO MR ROSS'S REPUTATION AND 25 MILLION FOR EMOTIONAL DISTRESS MR ROSS CONTENDED THAT THE NEWSPAPER WRONGLY LINKED HIM IN TWO ARTICLES TO A FEDERAL INVESTORFRAUD INVESTIGATION OF A FORMER BUSINESS PARTNER LOS ANGELES SUPERIOR COURT JUDGE HARVEY A SCHNEIDER FOUND FOUR RESPONSES BY THE JURY ON A MULTIQUESTION VERDICT FORM TO BE FACTUALLY INCONSISTENT HE ALSO RULED THAT 25 MILLION FOR EMOTIONAL DAMAGE WAS UNWARRANTED BECAUSE MR ROSS NEVER SOUGHT PROFESSIONAL CARE AND THERE WAS NO EVIDENCE OR TESTIMONY ALLEGING PERMANENT INJURY HOWEVER JUDGE SCHNEIDER SAID HE AGREED IN SOME RESPECTS THAT THE PAPER WAS NEGLIGENT IN PREPARING THE ARTICLES THE UNWILLINGNESS OF THE INDIVIDUAL DEFENDANTS AT TRIAL TO CONCEDE EVEN THE POSSIBILITY THAT A MISTAKE HAD BEEN MADE BY THEM UNDOUBTEDLY CONTRIBUTED TO THE EXCESSIVE JURY AWARD HE WROTE REX HEINKE THE LAWYER FOR THE TIMES CO IN LOS ANGELES SAID THAT WHILE THE COMPANY WAS GRATIFIED BY THE JUDGE'S DECISION HE DISAGREED WITH THE FINDING OF PARTIAL FAULT SINCE THE JUDGE DOESN'T SAY WHY HE THINKS WE WERE NEGLIGENT I DON'T KNOW HOW TO RESPOND OTHER THAN WE DISAGREE SAID MR HEINKE LAWYERS FOR MR ROSS COULD NOT BE REACHED MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9401170004 940117 INTERNATIONAL RUSSIAN GOVERNMENT'S RIFT OPENS AS CLINTON'S UPBEAT VISIT ENDS GAIDAR RESIGNS INDICATING FRUSTRATION OF REFORMERS WITH CENTRIST POLICIES BY ADI IGNATIUS AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW AS PRESIDENT CLINTON'S UPBEAT ENTOURAGE PULLED OUT OF TOWN THE RIFT IN RUSSIA'S GOVERNMENT SUDDENLY BROKE INTO THE OPEN AS ECONOMICREFORM CZAR YEGOR GAIDAR ANNOUNCED HIS RESIGNATION FOLLOWING TWO DAYS OF MEETINGS WITH TOP RUSSIAN OFFICIALS MR CLINTON HAD WAXED CONFIDENT THAT RUSSIA'S TEAM OF FREEMARKET REFORMERS WOULD STEAM FORWARD BUT MR GAIDAR'S ANNOUNCEMENT YESTERDAY THAT HE WON'T SERVE IN PRIME MINISTER VIKTOR CHERNOMYRDIN'S CABINET REVEALS THE FRUSTRATION RUSSIA'S RADICAL REFORMERS ARE FEELING AS THE GOVERNMENT PURSUES A MORE CENTRIST TACK GAIDAR DIDN'T WANT TO SERVE AS WINDOW DRESSING FOR THE CHERNOMYRDIN GOVERNMENT SAYS A FOREIGN ADVISER WHO WORKS CLOSELY WITH MR GAIDAR IT'S A TRAGEDY FOR RUSSIA'S REFORMS IN A RESIGNATION LETTER TO RUSSIAN PRESIDENT BORIS YELTSIN THE TEXT OF WHICH WAS PUBLISHED BY RUSSIA'S INTERFAX NEWS AGENCY MR GAIDAR COMPLAINED OF UNCEASING PRESSURE ON THE PART OF CONSERVATIVE POLITICAL CIRCLES AGAINST REFORMS I CANNOT BE RESPONSIBLE FOR REFORMS WITHOUT HAVING LEVERS FOR IMPLEMENTING AN ECONOMIC POLICY WHICH I AM SURE IS CORRECT HE WROTE MR GAIDAR SINGLED OUT TWO RECENT GOVERNMENT DECISIONS THAT HE PARTICULARLY OPPOSES ONE WAS THE POTENTIALLY INFLATIONARY AGREEMENT TO ALLOW THE NEWLY INDEPENDENT REPUBLIC OF BELARUS TO USE AND EVEN ISSUE RUSSIAN RUBLES THE OTHER WAS A DECISION TO SPEND 500 MILLION ON A NEW PARLIAMENT CENTER SINCE THEATRICS ARE A PART OF RUSSIAN POLITICAL LIFE IT IS POSSIBLE THAT MR GAIDAR WHO IS CURRENTLY A VICE PREMIER WILL RECONSIDER HIS DECISION AND STAY ON ESPECIALLY IF HIS ECONOMIC PORTFOLIO IS STRENGTHENED AT THE SAME TIME EVEN IF MR GAIDAR STICKS TO HIS DECISION TO QUIT IT WON'T MEAN AN END TO RUSSIA'S REFORMS OR THAT THE ECONOMY WILL RETURN TO STATE CONTROL EVEN WITHOUT MR GAIDAR THERE APPEARS TO BE A CONSENSUS IN FAVOR OF BOTH PRIVATIZATION AND THE MOVE TO A MARKET ECONOMY BUT THE PACE OF THAT SHIFT IS CRITICAL WITH MR GAIDAR OUT REFORMS ARE LIKELY TO PROCEED MORE GRADUALLY INFLATION WHICH FELL TO 12 A MONTH IN DECEMBER FROM 30 A MONTH EARLIER LAST YEAR COULD SPURT UPWARD AGAIN IN SHORT RUSSIA'S GOVERNMENT SEEMS TO HAVE LOST ITS WAY MR YELTSIN CONTINUES TO CALL FOR FREEMARKET REFORM BUT HE IS SURROUNDED BY A CABINET MADE UP OF AN UNWIELDY COALITION OF RADICAL REFORMERS AND CAUTIOUS STATE TECHNOCRATS THERE WAS SPECULATION YESTERDAY THAT TWO OTHER RADICAL REFORMERS WOULD ALSO RESIGN BORIS FYODOROV THE FINANCE MINISTER AND ANATOLY CHUBAIS RUSSIA'S PRIVATIZATION CZAR THAT WAS TEMPERED SOMEWHAT BY COUNTERSPECULATION THAT MESSRS YELTSIN AND CHERNOMYRDIN MIGHT DECLINE TO ACCEPT THE RESIGNATIONS OF MR GAIDAR OR ANY OTHER REFORMERS MR CHERNOMYRDIN IS SCHEDULED TO NAME A NEW CABINET TOMORROW THE GOVERNMENT RESHUFFLING IS TAKING PLACE AS RUSSIA'S NEWLY ELECTED PARLIAMENT BEGINS TO FIND ITS PLACE IN THE POLITICAL ORDER THE LEGISLATURE WHICH CONVENED LAST WEEK IS CERTAIN TO GIVE MR YELTSIN FITS ON FRIDAY THE STATE DUMA PARLIAMENT'S MORE POWERFUL LOWER HOUSE ELECTED AS ITS CHAIRMAN IVAN RYBKIN A 47YEAROLD ENGINEER AND FORMER COMMUNIST BUREAUCRAT FROM VOLGOGRAD PARLIAMENT'S UPPER HOUSE THE FEDERATION COUNCIL APPEARS MORE SUPPORTIVE OF MR YELTSIN'S REFORMS ITS NEWLY ELECTED CHAIRMAN IS A YELTSIN ALLY VLADIMIR SHUMEIKO BUT THE GAP BETWEEN THE TWO HOUSES AND SPLITS WITHIN THE GOVERNMENT ARE LIKELY TO MEAN LONGTERM POLITICAL PARALYSIS SOME DEPUTIES ALREADY ARE WONDERING ALOUD WHEN MR YELTSIN WILL TRY TO DISSOLVE THE LEGISLATURE HE DISSOLVED THE PREVIOUS ONE IN SEPTEMBER BUT NEEDED THE MILITARY TO BACK UP THE ACTION TURMOIL IN THE GOVERNMENT COMPLICATES THE CLINTON ADMINISTRATION'S EFFORTS TO PROVIDE TANGIBLE ASSISTANCE TO RUSSIA MR CLINTON ANNOUNCED THAT HE PLANS TO ASK CONGRESS FOR 900 MILLION IN AID FOR RUSSIA IN THE BUDGET HE WILL SEND TO CONGRESS FOR FISCAL 1995 WHICH WILL BEGIN OCT 1 THIS WOULD BE ON TOP OF THE ROUGHLY 3 BILLION THAT CONGRESS HAS ALREADY VOTED TO HELP RUSSIA AND OTHER FORMER SOVIET REPUBLICS FINANCE THE TRANSITION TO A FREEMARKET ECONOMY THIS YEAR MR CLINTON AND HIS AIDES ALSO REVEALED A SERIES OF OTHER INITIATIVES INVOLVING ENERGY TRADE AND DEBT RESTRUCTURING TO HELP RUSSIA CUSHION THE UNEMPLOYMENT AND OTHER PAIN THAT THE TRANSITION TO A MODERN ECONOMY IS CAUSING FOR EXAMPLE IN A TELEVISED ADDRESS AND QUESTIONANDANSWER PERIOD WITH RUSSIAN PEOPLE FRIDAY MR CLINTON REVEALED THAT WE ARE WORKING HARD TO GET ASSISTANCE TO THE NATIONS WHICH BUY YOUR ENERGY BECAUSE SO MANY OF THEM CANNOT AFFORD TO PAY FOR IT UNDER COMMUNISM MOSCOW SOLD OIL AND COAL TO SOVIET BLOC COUNTRIES AT LESS THAN MARKET PRICES NOW THAT MOSCOW IS SELLING RESOURCES AT MARKET PRICES THE FORMERLY SUBSIDIZED CUSTOMERS CAN'T AFFORD THE FUEL ONE WAY THE WEST HELPED RUSSIA LAST YEAR WAS TO RESTRUCTURE 15 BILLION OF REQUIRED DEBT PAYMENTS SO THAT MOSCOW DIDN'T HAVE TO DIVERT MONEY FROM DOMESTIC PURPOSES IT'S ALMOST CERTAIN THAT THE NATIONS THAT HAVE LENT RUSSIA BILLIONS OF DOLLARS WILL AGAIN AGREE TO DELAYED PAYMENTS ALTHOUGH MOSCOW'S CURRENT 19 BILLION PAYMENT OF INTEREST AND PRINCIPAL MAY RISE THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MAY BEGIN TO WORK OUT THE TERMS OF A RESTRUCTURING NEXT MONTH MR CLINTON AND HIS AIDES STRESSED THAT THEY WANT TO LAUNCH PROGRAMS THAT PROVIDE RELATIVELY QUICK CONCRETE EVIDENCE OF THE BENEFITS OF MARKET REFORM IN A RAPID FOLLOWUP TO MR CLINTON'S VISIT THE US WILL ANNOUNCE TODAY THE INAUGURATION OF THE RUSSIANAMERICAN ENTERPRISE FUND THE PRIVATE NONPROFIT FUND PLANS TO DIRECTLY INVEST IN AND RAISE FINANCING FOR SMALL AND MEDIUMSIZED RUSSIAN ENTERPRISES THAT HAVE RECENTLY BEEN PRIVATIZED BASED ON SIMILAR FUNDS SET UP IN CENTRAL EUROPE THE AGENCY HAS INITIAL CAPITAL OF 340 MILLION PROVIDED BY THE US GOVERNMENT AND HOPES TO RAISE ADDITIONAL PRIVATESECTOR FUNDING HEADING THE FUND IS ROBERT TOWBIN AN INVESTMENT BANKER AND A MANAGING DIRECTOR OF LEHMAN BROTHERS INC WHO WILL LOOK FOR PROFITABLE LONGTERM INVESTMENTS ESPECIALLY IN RUSSIAN PRODUCERS WHO ARE ABLE TO EXPORT OUR OBJECTIVE IS TO PROVE TO THE OUTSIDE WORLD WHICH IS RATHER CAUTIOUS THAT INVESTMENT CAN BE DONE EFFECTIVELY IN RUSSIA MR TOWBIN SAID IN AN INTERVIEW IN MOSCOW 9401170002 940117 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CAPITAL RE LIMITED LIFE CO 75 MILLION OF CUMULATIVE MONTHLY INCOME PREFERRED SHARES PRICED WITH A 765 DIVIDEND YIELD THE THREE MILLION SHARES WERE PRICED AT 25 EACH ACCORDING TO MCM CORPORATEWATCH THE PREFERRED SHARES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CAPITAL RE LIMITED LIFE CO IS A UNIT OF CAPITAL RE CORP FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE JAN 25 1999 PRICED AT PAR TO YIELD 534 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 23 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PAGING NETWORK INC 300 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 15 2006 PRICED AT PAR TO YIELD 8875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB1 BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO WR BERKLEY CORP 150 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 7375 DIVIDEND YIELD THE SHARES WERE PRICES AT 25 EACH ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEA1 BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO LINCOLN SNACKS CO INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 450 EACH THROUGH UNDERWRITERS LED BY ALLEN & CO PAPA JOHN'S INTERNATIONAL INC 12 MILLION COMMON SHARES PRICED AT 2625 EACH ACCORDING TO THE COMPANY THE LEAD UNDERWRITER IS MONTGOMERY SECURITIES JP REALTY INC INITIAL OFFERING OF 113 MILLION COMMON SHARES PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1678 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 179 MONTHS GOLDLION CAPITAL LTD HONG KONG PARENT 50 MILLION OF CONVERTIBLE EUROBONDS DUE FEB 1 1999 AT ISSUE PRICE PAR WITH COUPON INDICATED BETWEEN 475 AND 525 VIA CS FIRST BOSTON TERMS FIXED ON OR BEFORE JAN 20 CONVERTIBLE INTO ORDINARY SHARES OF GOLDLION HOLDINGS AT INDICATED PREMIUM 15 TO 18 AND CONVERSION PERIOD RUNS FROM MARCH 1 TO JAN 15 1999 CALLABLE FROM SECOND YEAR AT 103 DECLINING 1 PER ANNUM SUBJECT TO SHARE PRICE BEING AT LEAST 150 OF CONVERSION PRICE FEES 25 INTEREST PAYABLE SEMIANNUALLY SWEDEN SOVEREIGN 500 MILLION DUTCH GUILDERS OF 575 EUROBONDS DUE FEB 11 2004 AT ISSUE PRICE 10025 VIA RABOBANK NEDERLAND REOFFERED AT 9955 TO YIELD 5811 A MARGIN OF 20 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE TOYOBO CO JAPAN FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 20 1998 AT ISSUE PRICE PAR VIA MITSUBISHI FINANCE INTERNATIONAL PLC INTEREST PAYABLE QUARTERLY AND FLOATS AT 275 BASIS POINTS OVER THREEMONTH YEN LONDON INTERBANK OFFERED RATE FEES 02 9401170001 940117 LEISURE & ARTS TELEVISION THE MOST DYSFUNCTIONAL FAMILY OF ALL BY ROBERT GOLDBERG EVERYBODY'S GOT SOMEBODY WHO DON'T LIKE 'EM SAYS A TV DETECTIVE EVERY FAMILY'S GOT A DARK CLOUD JUDGING BY THIS WEEK'S TV FARE SOME FAMILIES SEEM TO CARRY AROUND THEIR OWN PRIVATE THUNDERSTORM THAT'S RIGHT IT'S DYSFUNCTIONALFAMILIES WEEK ON TELEVISION A QUIET SUNDAY AFTERNOON IN A SLEEPY SOUTHERN TOWN THE BIRDS ARE CHIRPING IN THE TREES CHURCH HAS JUST LET OUT AND IT'S TIME FOR A MANIACAL SNIPER TO LINE UP A MOTHER AND DAUGHTER IN THE CROSS HAIRS OF HIS RIFLE AND BLOW THEM AWAY GANGLANDSTYLE THESE ARE THE OPENING MOMENTS OF THE MINISERIES IN THE BEST OF FAMILIES MARRIAGE PRIDE AND MADNESS CBS PART II TUESDAY 911 PM EST A SAGA OF ROMANCE GONE REALLY REALLY SOUR FLASHING BACK TO 1970 A FLIRTATIOUS SOUTHERN BELLE FROM THE RIGHT KIND OF FAMILY SUSIE SHARP NEWSOM KELLY MCGILLIS IS ABOUT TO MARRY THE STAR OF THE BASKETBALL TEAM TOM LEARY KEITH CARRADINE BY THE WAY THEY SMOOCH IN HIS CONVERTIBLE ROARING DOWN THE HIGHWAY WE CONCLUDE THEY ARE DEEPLY IN LOVE AND DESTINED FOR A LIFETIME OF HAPPINESS IF THEY CAN KEEP THEIR EYES ON THE ROAD BUT RIGHT FROM THE START THERE ARE HINTS FOREBODINGS UNDERCURRENTS OF TENSION TOM'S STERN CRAB APPLE OF A MOTHER LOOKS SUSIE UP AND DOWN AND FROWNS I'M HIS MOTHER I KNOW WHAT'S BEST FOR HIM THE SIMPLE FACT IS TOM'S NOT READY TO GET MARRIED THE WEDDING DAY BRINGS A REAL SIGN OF TROUBLE A BRIDESMAID'S DRESS IS WRINKLED AND THE HIGHSTRUNG SUSIE FLIPS OUT WHY ARE YOU DETERMINED TO RUIN EVERYTHING SHE SCREAMS AT HER OWN MOTHER TOM'S MOM KNOCKS BACK ANOTHER DRINK AND SHAKES HER HEAD I'VE LOST MY SON SHE SAYS I CURSE THE DAY I EVER MET THAT GIRL A DECADE OF MARRIED LIFE FLIES BY AND TOM AND SUSIE NOW HAVE TWO KIDS CONVENIENT PINTSIZED PUNCHING BAGS FOR SUSIE'S INCREASINGLY FREQUENT OUTBURSTS OF FRUSTRATION AND ANGER SHE'S NOT HAPPY WITH THEIR NEW HOME IN NEW MEXICO SHE'S NOT HAPPY WITH THEIR MARRIAGE IN ONE EXCRUCIATING SCENE SHE SHOVES HER SCREAMING LITTLE BOY FULLY DRESSED UNDER AN ICECOLD SHOWER AS THE WATER POUNDS DOWN ON HIM AND HE CRIES PITEOUSLY SHE ASKS WHY DO YOU MAKE ME DO THIS CLEARLY DIVORCE IS JUST A FEW PLOT TWISTS AWAY RIGHT AFTER SUSIE GOES ON A RAMPAGE AND TRASHES THEIR HOUSE YELLING I HATE YOU AT THE TOP OF HER LUNGS SHE UPENDS FURNITURE EMPTIES BOOKCASES AND GENERALLY MAKES A SHAMBLES OF HER LIFE BY THIS POINT YOU FEEL SURE YOU'VE EXPERIENCED ALL THE MISERY AND MET ALL THE UNPLEASANT CHARACTERS THAT ANY ONE MINISERIES CAN THROW AT YOU BUT NO IN THE BEST OF FAMILIES IS JUST GETTING GOING BACK HOME IN NORTH CAROLINA SUSIE GETS MORE AND MORE BITTER AND LAUNCHES A NASTY CUSTODY BATTLE TO KEEP TOM AWAY FROM THEIR KIDS THEN SHE TAKES UP WITH HER FIRST COUSIN FRITZ HARRY HAMLIN FRITZ IS WELL A LITTLE ODD WHICH IS SAYING SOMETHING IN THIS COLLECTION OF SOCIOPATHS SPORTING PARAMILITARY GEAR A BUSHY BEARD AND A FAKE MEDICAL DEGREE HE TURNS SUSIE ON TO STRESS CAPSULES AND THE STATEOFTHEART BUNKER THAT HE'S JUST BUILT YOU KNOW WHAT'S HAPPENING IN THE WORLD TODAY FRITZ MUTTERS IT COULD BLOW AT ANY TIME I WANT TO BE READY IN ONE TWISTED SCENE THE BEARDED SURVIVALIST SEDUCES HIS FIRST COUSIN OVER THE BARREL OF HIS RIFLE FROM HERE ON OUT THINGS GET MESSY FRITZ AND SUSIE WILL RETREAT INTO THEIR OWN PRIVATE BUNKER TOM WILL FRANTICALLY TRY TO GET CUSTODY OF THE KIDS THROUGH ALL THE LEGAL CHANNELS SUSIE WILL SNARL LINES SUCH AS I'LL DIE BEFORE I LET HIM TAKE MY BOYS FRITZ WILL BRING HER OUT TARGET SHOOTING YOU'LL BE READY FOR COMBAT BEFORE YOU KNOW IT AND THE BOYS WILL WAIL TO THEIR FATHER DADDY DADDY DON'T MAKE US GO BACK IT'S ONLY A MATTER OF TIME BEFORE THE BLOODBATH BEGINS PARENTS AND RELATIVES TOM'S AND SUSIE'S ALL SHOT TO DEATH IN THEIR HOMES ONE AFTER ANOTHER A STRING OF VIOLENT SENSELESS MURDERS THE GRAND FINALE WILL RAISE THE BODY COUNT TO NINE CBS SAYS THIS PROGRAM RIVALS ANY GREEK TRAGEDY AND MAYBE IT'S RIGHT IF YOU'RE COUNTING THE NUMBER OF CORPSES THAT LITTER THE SCENE AT THE END BUT OTHER THAN THAT THE SOLE TRAGEDY IS THAT THIS MINISERIES GOT MADE AN UNINTERESTING STORY PACKED WITH UNHAPPY UNATTRACTIVE CHARACTERS IN THE BEST OF FAMILIES GETS MY VOTE FOR THE WORST FILM OF THE SEASON IT'S NOT JUST POORLY WRITTEN AND POORLY CONCEIVED IT'S A LURID FREAK SHOW OF A PROGRAM WHICH AIMS TO TITILLATE VIEWERS BY PLUNGING THEM HEADFIRST INTO THE MUCK TO WALLOW WITH THE PSYCHOTICS NORMALLY ONE DOESN'T GIVE AWAY THE CONCLUSION BUT LET ME SPARE YOU THE VIEWING OF THIS AFTER HOURS OF WATCHING THESE POOR INNOCENT CHILDREN CRYING THEIR EYES OUT WE'RE TREATED TO A FASTPACED FINALE IN WHICH TOM RACES TO GET HIS KIDS BACK THE POLICE CLOSE IN ON FRITZ AND SUSIE THE CRAZED PAIR LOAD THE CHILDREN INTO A CAR PACKED WITH EXPLOSIVES AND BOOM THEY SPLATTER THEMSELVES AND THE KIDS ALL OVER THE COUNTRYSIDE THAT'S IT LOOK OUT FOR THOSE FLYING HUNKS OF FLESH AT A TIME WHEN WASHINGTON IS EXAMINING NETWORK TV PROGRAMMING MORE AND MORE CLOSELY IN THE BEST OF FAMILIES IS EXACTLY THE KIND OF SHOW THAT WILL DRAW THE IRE OF CONGRESS NOT JUST BECAUSE IT'S BRUTISH AND VIOLENT BUT BECAUSE THAT VIOLENCE HAS NO ARTISTIC PURPOSE OTHER THAN SENSATIONALISM LEGISLATORS REALLY DON'T BELONG IN THE TVCRITIC BUSINESS THERE'S ENOUGH COMPETITION ALREADY BUT YOU COULDN'T BLAME THEM IF A SHOW LIKE THIS PULLAD THEM IN BEYOND THE BULLET HOLES THE BUCKETS OF BLOOD AND THE BARRAGE OF SICK EMOTIONS THIS MINISERIES RACKS UP ITS CASUALTIES OFFSCREEN AS WELL AS ON AFTER FOUR HOURS OF WATCHING IN THE BEST OF FAMILIES THE VIEWER IS LEFT FEELING STAINED SOILED JUST PLAIN YUCKY AND IT MAKES YOU WONDER IF THERE ISN'T SOMETHING DYSFUNCTIONAL AT THE CBS FAMILY THAT MADE IT CHOOSE TO AIR THIS PROGRAM 9401140176 940114 FINANCING BUSINESS FREEPORTMCMORAN COPPER & GOLD INC FREEPORTMCMORAN COPPER & GOLD INC NEW ORLEANS SAID IT'S MAKING A PUBLIC OFFERING OF 3750000 OF ITS NEW DEPOSITARY SHARES SERIES II THE SHARES ARE PRICED AT 38875 APIECE AND ARE EXPECTED TO BRING PROCEEDS OF 1385 MILLION PROCEEDS WILL BE USED BY THE MINING COMPANY TO FINANCE CAPITAL EXPENDITURES BY ITS PT FREEPORT INDONESIA CO SUBSIDIARY THE OFFERING IS BEING MANAGED BY LEHMAN BROTHERS INC 9401140175 940114 WHO'S NEWS TEXACO INC TEXACO INC WHITE PLAINS NY DR CECIL M CHOPIN 52 YEARS OLD FORMERLY GENERAL MANAGER OF THE EXPLORATION AND PRODUCTION TECHNOLOGY DEPARTMENT OF THIS ENERGY COMPANY WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF THE MIDDLE EASTFAR EAST DIVISION 9401140174 940114 WHO'S NEWS BRADLEES INC BRADLEES INC BRAINTREE MASS JOHN A CURRY PRESIDENT OF NORTHEASTERN UNIVERSITY IN BOSTON WAS ELECTED A DIRECTOR OF THIS DISCOUNT DEPARTMENT STORE CONCERN GIVING THE BOARD SIX MEMBERS 9401140173 940114 WHO'S NEWS KANEB PIPE LINE CO KANEB PIPE LINE CO DALLAS LEON E HUTCHENS WAS NAMED PRESIDENT OF THIS PETROLEUM PRODUCTS PIPELINE COMPANY SUCCEEDING MR BILES 63 YEARS OLD WHO RETIRED LAST MONTH MR HUTCHENS 59 WAS EXECUTIVE VICE PRESIDENT EDWARD D DOHERTY 58 REMAINS CHAIRMAN 9401140172 940114 WHO'S NEWS NOBLE AFFILIATES INC NOBLE AFFILIATES INC ARDMORE OKLA GUY C SPENCE WAS NAMED PRESIDENT OF THE NEWLY FORMED NOBLE GAS MARKETING INC SUBSIDIARY OF THIS OIL AND NATURALGAS EXPLORATION COMPANY MR SPENCE 46 YEARS OLD WAS FORMERLY A CONSULTANT TO THE PARENT COMPANY 9401140171 940114 WHO'S NEWS BRIDGESTONE CORP BRIDGESTONE CORP TOKYO ROBERT J MCNALLY 47 YEARS OLD FORMERLY CONTROLLER OF BRIDGESTONE/FIRESTONE TIRE SALES WAS NAMED PRESIDENT OF BRIDGESTONE/FIRESTONE OFF ROAD TIRE CO A NEW UNIT OF TIRE MAKER BRIDGESTONE/FIRESTONE INC OF NASHVILLE TENN THE NEW UNIT WILL MAKE AND MARKET OFFTHEROAD TIRES 9401140170 940114 WHO'S NEWS POSSIS MEDICAL INC POSSIS MEDICAL INC MINNEAPOLIS ANN MARIE POSSIS A DEVELOPMENT ASSOCIATE FOR PLANNED PARENTHOOD OF MINNESOTA AND DAUGHTER OF THE COMPANY'S FOUNDER AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER ZINON C POSSIS WHO DIED LAST YEAR WAS NAMED A DIRECTOR OF THE MEDICALDEVICE CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN 9401140169 940114 MANUFACTURERS BUILDERS EXPECT IMPROVED BUSINESS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEARTENED BY RECENT IMPROVEMENTS IN BUSINESS CONDITIONS MANUFACTURERS AND CONSTRUCTION EXECUTIVES EXPECT MODEST INCREASES IN ORDERS AND EMPLOYMENT OVER THE NEXT THREE MONTHS ACCORDING TO TWO SURVEYS BY DUN & BRADSTREET CORP THE MONTHLY SURVEY OF 1000 MANUFACTURERS NATIONWIDE INDICATED THAT THE INDUSTRY'S GLOOMY OUTLOOK HAS BEGUN TO LIFT UNTIL NOW THE MANUFACTURERS SAID THEY NOTICED BUSINESS WAS IMPROVING BUT WERE WARY OF MAKING ANY CHANGES IN OPERATIONS SAID DOUGLAS HANDLER MANAGER OF ECONOMIC ANALYSIS FOR THE BUSINESS INFORMATION SERVICES COMPANY FINALLY MANUFACTURERS ARE BEGINNING TO FACTOR THIS GROWTH INTO THEIR EARLY PRODUCTION PLANS FOR 1994 MANUFACTURING CONDITIONS AS MEASURED OVER THE PAST THREE MONTHS REACHED THEIR HIGHEST LEVEL SINCE THE SURVEY BEGAN IN 1990 WITH OUTPUT NEW ORDERS AND EXPORT ORDERS EACH HITTING RECORD LEVELS EXPECTATIONS FOR THE COMING THREE MONTHS FOR PRODUCTION NEW ORDERS UNFILLED ORDERS FINISHEDGOODS INVENTORIES AND EXPORT ORDERS ALL CLIMBED FROM NOVEMBER LEVELS D&B'S INDUSTRIALSENTIMENT INDEX WHICH PROVIDES A COMPOSITE PICTURE OF THESE THREEMONTH EXPECTATIONS CLIMBED FOUR POINTS TO 20 THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING FIRMS EXPECTING INCREASES IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES THE ONLY DOWN SIDE TO THE SURVEY IS THAT MANY MANUFACTURERS FORESEE AN INCREASE IN THEIR FINISHEDGOODS INVENTORIES SAID MR HANDLER IF THE DEMAND FOR THESE GOODS DOES NOT MATERIALIZE WE MAY SEE SOME CUTBACKS IN THE SECOND QUARTER CONSTRUCTION FIRMS REPORTED THEY ARE IN THE BEST SHAPE SINCE THE END OF THE RECESSION ALMOST THREE YEARS AGO SAID MR HANDLER EXPECTATIONS FOR ADDITIONAL IMPROVEMENTS SUGGEST THAT THIS BOOM WILL CONTINUE THROUGH THE FIRST QUARTER THE CONSTRUCTION SURVEY INCLUDES INDEXES OF NEW ORDERS EMPLOYMENT AND PRICES INDEXES OF CURRENT CONDITIONS IMPROVED FOR BOTH NEW ORDERS AND EMPLOYMENT WHILE REMAINING UNCHANGED FROM THE MONTHAGO FIGURES FOR PRICES ALL SHOWED SIZABLE IMPROVEMENTS FROM A YEAR AGO THE INDEXES OF EXPECTATIONS FOR THE COMING THREE MONTHS ALSO LOGGED IMPROVEMENTS ACROSS THE BOARD WITH MODEST IMPROVEMENTS EXPECTED IN EMPLOYMENT MOST OF THIS GROWTH IS FUELED BY NEW SINGLEFAMILY HOUSING CONSTRUCTION EXPLAINED MR HANDLER GROWTH IN THE OTHER AREAS STILL REMAINS FLAT 9401140168 940114 WHO'S NEWS BROWN BROTHERS HARRIMAN & CO BROWN BROTHERS HARRIMAN & CO NEW YORK THE PRIVATE BANKING COMPANY NAMED TWO FORMER SENIOR MANAGERS AS GENERAL PARTNERS HAMPTON S LYNCH JR 42 YEARS OLD DEPARTMENT HEAD OF INTERNATIONAL BANKING AND INVESTMENT SERVICES IN NEW YORK AND A HEATON ROBERTSON 50 RESPONSIBLE FOR THE COMMERCIAL BANKING AND CORPORATE FINANCE IN BOSTON 9401140167 940114 WHO'S NEWS INLAND STEEL INDUSTRIES INC INLAND STEEL INDUSTRIES INC CHICAGO ROBERT B MCKERSIE 64 YEARS OLD DEPUTY DEAN AND SOCIETY OF SLOAN FELLOWS PROFESSOR AT THE SLOAN SCHOOL OF MANAGEMENT AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY WAS NAMED A NEW DIRECTOR OF THIS STEEL HOLDING CONCERN AND OF ITS INLAND STEEL CO UNIT THE MOVE INCREASES THE SIZE OF BOTH BOARDS TO 11 MEMBERS 9401140166 940114 WHO'S NEWS MAGMA POWER CO MAGMA POWER CO SAN DIEGO JOHN D ROACH WAS ELECTED A DIRECTOR OF THIS GEOTHERMAL POWER PLANT OPERATOR SUCCEEDING ARNOLD L JOHNSON 60 WHO RESIGNED MR ROACH 50 IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF FIBREBOARD CORP 9401140165 940114 BUSINESS BRIEF P&G DETAILS PLANS TO CLOSE FACTORIES LAY OFF 12 OF WORK FORCE BY 1995 CINCINNATI PROCTER & GAMBLE CO DISCLOSING SOME SPECIFICS OF THE RESTRUCTURING PROGRAM ANNOUNCED LAST SUMMER SAID IT WILL CLOSE FOUR PLANTS AND ELIMINATE PRODUCTION LINES AT SIX OTHERS ABOUT 1800 EMPLOYEES WILL BE AFFECTED THROUGH LAYOFFS EARLY RETIREMENTS OR TRANSFERS THE CONSUMERPRODUCTS COMPANY SAID THE CUTS REPRESENT ABOUT HALF OF THE NORTH AMERICAN MANUFACTURING POSITIONS THE COMPANY SAID ULTIMATELY WILL BE ELIMINATED AS PART OF ITS PLAN TO SHUT 30 PLANTS AND CUT 13000 JOBS OR 12 OF ITS WORK FORCE WORLDWIDE THE PLANTS TO BE CLOSED ARE A DISHWASHINGDETERGENT AND GLYCERIN PLANT IN BALTIMORE TO BE SHUT BY JULY 1995 A SOAP AND FATTY ACID PLANT IN QUINCY MASS TO BE SHUT BY JANUARY 1995 A FOLGERS COFFEE PLANT IN SOUTH SAN FRANCISCO CALIF TO CLOSE BY JULY 1994 AND A HEALTHANDBEAUTY CARE PRODUCTS PLANT IN POINTE CLAIRE QUEBEC TO BE PHASED OUT BY JANUARY 1995 PRODUCTION LINES WILL BE SHUT WITHIN OTHER PLANTS THAT WILL REMAIN OPEN A LAUNDRYANDHOUSEHOLDCLEANING PRODUCTS LINE WILL BE PHASED OUT BY YEAR END AT THE SACRAMENTO CALIF PLANT WHICH STILL WILL PRODUCE INDUSTRIAL CHEMICALS MEANWHILE HEALTHANDBEAUTY CARE PRODUCTS AND FABRIC SOFTENERS WILL BE ELIMINATED AT THE HAMILTON ONTARIO PLANT WHICH WILL CONTINUE TO PRODUCE TOILET SOAP LIQUID DETERGENTS AND HOUSEHOLDCLEANING PRODUCTS INCONTINENCE PRODUCTS WILL BE TRANSFERRED FROM THE MODESTO CALIF PLANT WHERE PRODUCTION OF PAMPERS AND LUVS DIAPERS WILL BE STREAMLINED OVER THE NEXT 18 MONTHS UNDISCLOSED LINES WILL BE ELIMINATED THOUGH NO JOBS WILL BE CUT AT THREE ADDITIONAL LOCATIONS IOWA CITY IOWA WHICH MAKES HEALTHANDBEAUTY CARE PRODUCTS KANSAS CITY KAN WHICH MAKES SOAP AND GREENSBORO NC WHICH MAKES HEALTHCARE PRODUCTS THE COST OF THE MOVES WAS INCORPORATED IN THE 15 BILLION RESERVE P&G ESTABLISHED IN JULY 1993 TO COVER PLANT CONSOLIDATIONS AND ORGANIZATIONAL RESTRUCTURING AT THAT TIME THE COMPANY NOTED THAT 12 BILLION OF THAT RESERVE WOULD FUND CHANGES TO ITS WORLDWIDE MANUFACTURING OPERATIONS INCLUDING THE CLOSURE OF 20 OF ITS MANUFACTURING OPERATIONS OVER A PERIOD OF THREE TO FOUR YEARS 9401140164 940114 WHO'S NEWS GENESEE CORP GENESEE CORP ROCHESTER NY CHARLES S WEHLE 46 YEARS OLD EXECUTIVE VICE PRESIDENT SALES AND MARKETING OF THE GENESEE BREWING CO UNIT WAS NAMED TO THE ADDITIONAL AND NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF THIS HOLDING COMPANY WITH INTERESTS IN BEER AND ALE DEHYDRATED FOOD PRODUCTS REAL ESTATE INVESTMENT AND EQUIPMENT LEASING 9401140163 940114 APPAREL FIRMS LIKELY TO POST SOFT EARNINGS RETAILERS' ORDER CUTBACK LAST AUTUMN IS LINKED TO CAUTION BY SHOPPERS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK APPAREL COMPANIES PROBABLY WILL REPORT WEAKERTHANEXPECTED FOURTHQUARTER EARNINGS BECAUSE OF CONSERVATIVE RETAIL ORDERS OF FALL AND CHRISTMAS MERCHANDISE ANALYSTS NOTED THAT RETAILERS CUT BACK ON THEIR WHOLESALE ORDERS FROM CLOTHING MAKERS LAST FALL AS SHOPPERS CONTINUED TO SPEND CAUTIOUSLY ON CLOTHES THEY ALSO SAID THAT SPOTTY RETAIL SALES THROUGHOUT 1993 FORCED APPAREL COMPANIES TO LIQUIDATE EXCESS INVENTORIES AT LOWERTHANEXPECTED PROFIT MARGINS WHICH DRAGGED DOWN FOURTHQUARTER EARNINGS SALES OF WOMEN'S APPAREL ARE STILL WEAK AND OVERALL THE FOURTH QUARTER IS GOING TO BE DISAPPOINTING FOR APPAREL SAID JOSIE ESQUIVEL AN APPAREL ANALYST AT LEHMAN BROTHERS INC WHO ESTIMATES THAT MOST APPAREL COMPANIES WILL REPORT FOURTHQUARTER EARNINGS LOWER THAN A YEAR AGO AFTER MONTHS OF STEADY GROWTH MAKERS OF TSHIRTS SWEATS AND OTHER BASIC APPAREL EXPERIENCED A SALES SLOWDOWN IN THE FOURTH QUARTER IN THE COMMODITY APPAREL BUSINESS WHERE EVERYBODY IS MAKING VIRTUALLY THE SAME THING AND THERE IS AN OVERSUPPLY OF INVENTORY STORES ARE GOING TO PICK THE PRODUCTS THAT COST LESS AND THAT WEAKENS MARGINS FOR APPAREL COMPANIES SAID TODD SLATER AN APPAREL ANALYST AT UBS SECURITIES DEBORAH BRONSTON OF PRUDENTIAL SECURITIES IS PREDICTING LOWER FOURTHQUARTER EARNINGS AT JEANSWEAR MAKER VF CORP ABOUT 92 CENTS A SHARE DOWN FROM 114 A SHARE A YEAR AGO WHEN THE COMPANY HAD A NONRECURRING GAIN OF 17 CENTS A SHARE AT FRUIT OF THE LOOM INC ANALYSTS EXPECT EARNINGS TO FALL TO ABOUT 26 CENTS A SHARE FROM 64 CENTS IN THE 1992 FOURTH QUARTER AND AT RUSSELL CORP NET INCOME IS EXPECTED TO DROP TO 59 CENTS A SHARE FROM 74 CENTS A YEAR AGO AMONG WOMEN'S APPAREL MAKERS LIZ CLAIBORNE INC CONTINUES TO BE SADDLED WITH HIGH INVENTORIES AND IS EXPECTED TO REPORT FOURTHQUARTER NET INCOME OF 15 CENTS TO 22 CENTS A SHARE DOWN FROM 63 CENTS THERE ARE SOME EXCEPTIONS TAKING ADVANTAGE OF CLAIBORNE'S WEAKNESS IN THE MARKETPLACE AND BENEFITING FROM ADDITIONAL BUSINESS FROM ITS NEW DIVISIONS JONES APPAREL GROUP INC HAS GAINED MARKET SHARE AND INCREASED ITS EARNINGS ALICE RUTH AN ANALYST AT MONTGOMERY SECURITIES PREDICTS THAT JONES WILL REPORT NET INCOME OF ABOUT 28 CENTS A SHARE UP FROM 24 CENTS A YEAR AGO SEVERAL MENSWEAR FIRMS HAD A STRONGER FOURTHQUARTER THAN IN 1992 TAILORED CLOTHING GIANT HARTMARX CORP YESTERDAY RECORDED FOURTHQUARTER EARNINGS OF 29 CENTS A SHARE UP FROM 22 CENTS A SHARE A YEAR AGO WHILE NAUTICA ENTERPRISES INC REPORTED THAT FOURTHQUARTER NET INCREASED TO 55 CENTS A SHARE FROM 36 CENTS A YEAR EARLIER THE INTRODUCTION OF MEN'S WRINKLEFREE COTTON PANTS LAST YEAR SPARKED EARNINGS GAINS AT FARAH INC WHICH REPORTED NET INCOME OF 42 CENTS A SHARE IN THE LATEST QUARTER UP FROM 17 CENTS A SHARE A YEAR AGO WITH ABOUT 500 INSTORE SHOPS IN DEPARTMENT STORES THE FASTGROWING TOMMY HILFIGER CORP IS EXPECTED TO POST NET INCOME OF 40 CENTS A SHARE VS 28 CENTS A YEAR EARLIER ON A HIGHER NUMBER OF SHARES BRISK SALES IN ITS RETAIL DIVISIONS GENERATED EARNINGS GAINS AT PHILLIPSVAN HEUSEN CORP WHICH WALL STREET EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 50 CENTS A SHARE COMPARED WITH 36 CENTS A YEAR AGO INDUSTRY OBSERVERS DON'T EXPECT DEMAND FOR WOMEN'S APPAREL TO REBOUND IN THE FIRST QUARTER OF 1994 NOTING THAT MANY SHOPPERS ARE STILL RECOVERING FROM HOLIDAY SPENDING AND CONSUMERS CONTINUE TO BE WARY ABOUT THE ECONOMY WHAT'S MORE WITHOUT MAJOR NEW FASHION TRENDS SALES ARE LIKELY TO STAY DEPRESSED WHEN RETAIL DEMAND FALLS INTO A SLUMP MANUFACTURERS PLAN CONSERVATIVELY AND DEFENSIVELY AND THEY DON'T PRODUCE A LOT OF NEW IDEAS' SAYS MR SLATER OF UBS SECURITIES BUT IT'S THE NEWNESS THAT EXCITES APPAREL CUSTOMERS AND CREATES DEMAND 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 9401140162 940114 GTE TO TRIM 13 OF WORKERS POST BIG CHARGE FOURTHPERIOD PRETAX ITEM LINKED TO RESTRUCTURING IS PUT AT 18 BILLION BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GTE CORP RACING TO SLIM DOWN FAST FOR THE MULTIMEDIA AGE ANNOUNCED A 18 BILLION PRETAX CHARGE TO RESTRUCTURE AND CUT 17000 JOBS OR 13 OF ITS WORK FORCE THE COMPANY SAID THE CHARGE SHOULD HURT FOURTHQUARTER RESULTS BY ABOUT 12 BILLION OR 122 A SHARE WHICH WILL TRIGGER A NET LOSS GTE EARNED 417 MILLION OR 44 CENTS A SHARE IN THE 1992 FOURTH QUARTER AND THE COMPANY SAID THAT WITHOUT THE CHARGE EARNINGS WOULD HAVE MET ANALYSTS' EXPECTATIONS OF ABOUT 62 CENTS A SHARE AS PART OF THE PLAN GTE SAID IT WOULD MELD ITS SPACENET SATELLITE COMMUNICATIONS OPERATIONS WITH ITS GOVERNMENT SYSTEMS UNIT THE REPORTED PRETAX CHARGES SHOULD INCLUDE A 340 MILLION WRITEDOWN TO ACCOUNT FOR LOWER REVENUE IN THE SATELLITE UNIT IN OUR INDUSTRY YOU CAN ONLY COMPETE IF YOU HAVE A COMPETITIVE COST STRUCTURE CHARLES R LEE GTE'S CHAIRMAN SAID IN AN INTERVIEW OTHERWISE THE COMPANY IS GOING TO BLOW UP THE STREAMLINING WHICH INCLUDES ABOUT 12500 HOURLY WORKERS AND 4500 MANAGEMENT AND SALARIED EMPLOYEES IS THE STAMFORD CONN COMPANY'S LATEST EFFORT TO BURY ITS IMAGE AS THE CHUBBY COMPADRE OF THE SLIMMER REGIONAL BELL PHONE COMPANIES SUCH COMPANIES AS PACIFIC TELESIS GROUP AND NYNEX CORP HAVE ANNOUNCED SIMILAR PLANS TO SCALE BACK STAFF AS THEY PREPARE FOR COMPETITION FROM CABLE AND OTHER CARRIERS IN THEIR MARKETS GTE SAID THE THREEYEAR STREAMLINING PLAN WILL SAVE 1 BILLION A YEAR AS THE COMPANY SEEKS TO TRANSFORM ITSELF INTO A SVELTE LOWPRICED CARRIER OF VOICE DATA AND ENTERTAINMENT SERVICES GTE OPERATES A NATIONWIDE SYSTEM OF LOCAL PHONE COMPANIES WITH 17 MILLION PHONE LINES AND HAS THE NATION'S SECONDLARGEST CELLULAR PHONE COMPANY TODAY MANY OF GTE'S SERVICE AREAS ARE RURAL THIS LARGER GEOGRAPHICAL DISPERSION HAS TRADITIONALLY REQUIRED GTE TO EMPLOY MORE WORKERS THAN THE SEVEN BABY BELLS 42 WORKERS PER 10000 PHONE LINES FOR GTE COMPARED WITH AN AVERAGE OF 37 WORKERS FOR THE BELLS BUT GTE HAS BEEN REENGINEERING ITSELF REPLACING EMPLOYEES WITH FASTER MORE EFFICIENT COMPUTERIZED MAINTENANCE EQUIPMENT THE NEW CUTS ANNOUNCED YESTERDAY WILL TRIM 23 OF GTE'S 73000 LOCAL PHONE WORKERS ON TOP OF 28000 JOB CUTS THE COMPANY HAS MADE SINCE 1988 GTE EMPLOYS 130000 PEOPLE WORLDWIDE IN LOCAL PHONE CELLULAR INTERNATIONAL AND SATELLITECOMMUNICATION SERVICES WHILE MR LEE SAID GTE WAS STILL TRYING TO DETERMINE HOW BEST TO CARRY OUT THE NEW WORKFORCE REDUCTIONS HE NOTED THAT IN PAST CUTBACKS 98 OF THE WORKERS WHO LEFT GTE DID SO EITHER VOLUNTARILY OR THROUGH NORMAL ATTRITION A SPOKESMAN LATER SAID THE MAJORITY OF CUTS WILL BE MOSTLY INVOLUNTARY SEPARATIONS GTE'S CHIEF UNION WASN'T PLEASED THE COMMUNICATIONS WORKERS OF AMERICA SAID GTE'S PLAN WAS YET ANOTHER EXAMPLE OF A HIGHLY PROFITABLE COMPANY ELIMINATING THE PEOPLE WHO BUILT THE COMPANY AND CREATED ITS TECHNOLOGY TO FURTHER ENHANCE THE BOTTOM LINE THE UNION CALLED ON THE WHITE HOUSE AND CONGRESS TO LOOK CLOSELY AT JOB CREATION AND EMPLOYMENT STABILITY AS THE COMPETITIVE RULES FOR MULTIMEDIA COMMUNICATIONS ARE REWRITTEN THE NEW CUTS SHOULD BRING GTE INTO THE LOW 30S IN TERMS OF WORKERS PER 10000 PHONE LINES MAKING GTE COMPETITIVE WITH THE BABY BELLS SAID ANALYST JACK B GRUBMAN OF PAINEWEBBER INC THIS WILL IMPROVE GTE'S PRODUCTIVITY BY 20 OVER THREE YEARS A GTE SPOKESMAN SAID IT CURRENTLY TAKES 12 HOURS AND EIGHT WORKERS TO RESOLVE A ROUTINE REPAIR PROBLEM UNDER THE NEW PROCESS THAT USES ADVANCED NETWORK DIAGNOSTIC SYSTEMS A SINGLE WORKER COULD RESOLVE CUSTOMERS' PHONELINE COMPLAINTS IN 70 OF CASES THE BIGGEST PART OF THE CHARGE ABOUT 13 BILLION WILL COVER CLOSING FACILITIES WRITING OFF OUTDATED EQUIPMENT AND SEVERING EMPLOYEES THAT INCLUDES 680 MILLION IN EQUIPMENT WRITEOFFS AS GTE UPGRADES TO NEW GEAR AND NETWORK SOFTWARE AND 160 MILLION FOR CONSOLIDATING FACILITIES AND OPERATIONS CUSTOMER CENTERS WILL BE CUT TO 11 FROM 171 BILLING CENTERS WILL BE REDUCED TO ONE FROM FIVE AND NETWORKMANAGEMENT SITES WILL BE CUT TO ONE FROM 19 ABOUT 410 MILLION WILL COVER LAYOFFS AND AN ADDITIONAL 50 MILLION WILL BE APPLIED TO RETRAINING GTE SAID AT SPACENET REVENUES HAVE BEEN DECLINING STEADILY BECAUSE OF COMPETITION FROM HIGHCAPACITY TERRESTRIAL TRANSMISSION NETWORKS TO CUT ITS LOSSES GTE DECIDED IT WAS BETTER TO JOIN THE UNIT WITH GOVERNMENT SYSTEMS SINCE THE TWO BUSINESSES WERE ALREADY INTIMATELY INVOLVED A SPOKESMAN SAID THEY ALREADY SHARE SOME CUSTOMERS SOME TECHNOLOGIES AND MANY TIMES THEY BID TOGETHER ON SERVICE CONTRACTS HE SAID THE REMAINING 160 MILLION IN CHARGES WILL COVER REALESTATE ASSETS THAT GTE IS ABANDONING AS IT STREAMLINES A SPOKESMAN ADDED GTE SHARES FELL 25 CENTS OR 07 TO CLOSE AT 34625 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY RECENTLY MR LEE SAID GTE WOULD AMASS MULTIMEDIA ASSETS AS IT PREPARES TO OFFER CUSTOMERS VIDEO AND DATA SERVICES THROUGH ITS PHONE LINES PART OF THIS PLAN MAY INCLUDE SEEKING PARTNERS OR ACQUISITIONS IN CABLE AND ENTERTAINMENT PROGRAMMING HE SAID YESTERDAY HE MADE IT CLEAR THAT GTE IS STILL IN THE HUNT WE'LL DELIVER VIDEO DIALTONE SERVICES TO UP TO SEVEN MILLION HOMES IN SIX OR SEVEN YEARS MR LEE SAID WE'RE HAVING DISCUSSIONS WITH ALL THE KEY PEOPLE IN THE INDUSTRY ABOUT ALLIANCES PARTNERSHIPS COMBINATIONS NOTHING IS RULED OUT SEPARATELY A FEDERAL JUDGE IN LOS ANGELES RULED THAT GTE'S FORMER SYLVANIA LIGHTING UNIT NOW OWNED BY A UNIT OF GERMANY'S SIEMENS AG MUST PAY ALMOST 7 MILLION IN DAMAGES FOR PRICE DISCRIMINATION THE SUIT FILED IN US DISTRICT COURT CHARGED GTESYLVANIA WITH PROVIDING LIGHTING PRODUCTS TO CERTAIN KEY DISTRIBUTORS AT PRICES BELOW PUBLISHED PRICE LISTS AND WITH OFFERING SECRET REBATES THE COMPLAINT WAS FILED BY CHARLES VON DER AHE A FORMER LIGHTING DISTRIBUTOR WHO CLAIMED THAT GTESYLVANIA RAN A PRICEDISCRIMINATION SCHEME GTESYLVANIA RESPONDED THAT IT WAS MATCHING PRICES OFFERED TO CUSTOMERS BY COMPETITORS A SPOKESMAN AT SIEMENS CITING A CONFIDENTIALITY AGREEMENT BETWEEN HIS COMPANY AND GTE DECLINED TO SAY WHETHER GTE OR SIEMENS'S OSRAM UNIT WHICH NOW OWNS SYLVANIA IS LIABLE FOR THE DAMAGES HE DID SAY OSRAM WILL APPEAL THE RULING 9401140161 940114 INTERNATIONAL WORLD ECONOMY CIA FINDS A NEW FOCUS ESPIONAGE AND BRIBERY THAT HURT US BUSINESS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTENTION US BUSINESSMEN HAVING TROUBLE GUARDING YOUR SECRETS LOSING OVERSEAS CONTRACTS TO FOREIGN RIVALS WHO PAY BIG BRIBES THE CIA WANTS TO LEND YOU A HELPING HAND THERE'S A BIG JOB TO BE DONE ACCORDING TO JAMES WOOLSEY WHO BECAME DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY LAST YEAR AND THE CIA WANTS TO DO IT BECAUSE AMERICANS WERE LESS CONCERNED ABOUT EXPORTS WHILE BUSILY WAGING THE COLD WAR THE US OFTEN HASN'T BEEN PARTICULARLY STRICT ABOUT SUCH INDUSTRIAL ESPIONAGE AND BRIBERY TARGETED AGAINST AMERICAN COMPANIES IN THE PAST MR WOOLSEY TOLD A BUSINESS GROUP RECENTLY WELL NO MORE MR NICE GUY MICHAEL HERSHMAN OF THE FAIRFAX GROUP A PRIVATE INTELLIGENCE COMPANY WITH CORPORATE CLIENTS SAYS HE WELCOMES THIS SIGNIFICANT CHANGE OF DIRECTION FOR THE CIA WE HAVE TO START BRINGING OURSELVES ONTO AN EQUAL FOOTING WITH THE COMPETITION THE US SPIES MAY BE LOOKING OUT FOR THEMSELVES AS WELL THE COLLAPSE OF THE SOVIET UNION MEANS THE CIA LIKE THE DEFENSE DEPARTMENT AND OTHERS CONCERNED WITH NATIONAL SECURITY MUST SLIM DOWN THIS INTENSIFIED INTEREST IN BUSINESS MATTERS MAY BE PARTLY AN EFFORT TO KEEP THE SLIMMING UNDER CONTROL THAT COULD BE A HARD SELL THERE IS NO DESIRE ON THIS COMMITTEE'S PART TO HELP THEM CAST ABOUT FOR NEW WORK WHEN THE NEED DOESN'T DEMONSTRABLY EXIST WARNS MICHAEL SHEEHY CHIEF COUNSEL FOR THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE AN OVERSIGHT BODY BUT THE CIA CLAIMS THE NEED IS THERE THOUGH AGENCY OFFICIALS AND SKEPTICS AGREE THERE'S A DANGER OF GOING TOO FAR THAT'S WHY THE CIA INSISTS IT WON'T TRY AND OTHERS SAY THE GOVERNMENT WOULD NEVER PERMIT SPYING ON FOREIGN COMPANIES OR STEALING PROPRIETARY SECRETS FOR THE DIRECT BENEFIT OF AMERICAN BUSINESS THE LEGAL AND FOREIGN POLICY RAMIFICATIONS OF THIS WOULD BE COUNTERPRODUCTIVE AND DAMAGING IN A NUMBER OF WAYS MR WOOLSEY SAYS THE CIA HAS LONG WATCHED OTHER COUNTRIES' SPY AGENCIES AND TRIED TO KEEP TRACK OF MEDDLING THAT HURTS US COMPANIES BUT MR WOOLSEY IS PUSHING DEEPER INTO COMMERCIAL MATTERS WE WILL DO SO WITH SPECIAL ENTHUSIASM AND RELISH THOUGH THE TOPIC REMAINS CONTROVERSIAL BOTH WITHIN THE CIA AND THE ADMINISTRATION AS A WHOLE SOME EXPERTS CONTEND THAT THESE AREN'T PROPER DUTIES FOR THE NATION'S CHIEF INTELLIGENCE BUREAU WHAT IS CIA SUPPOSED TO STAND FOR THE CENTRAL INTELLIGENCE ANTIBRIBERY AGENCY ASKS A SKEPTICAL FORMER US OFFICIAL FAMILIAR WITH ITS OPERATIONS BUT AGENCY OFFICIALS SAY THE BUSINESS ROLE CAN BE TWOFOLD ONE TASK IS TO MONITOR MORE CLOSELY THOSE FOREIGN SPY AGENCIES THAT TRY TO STEAL AMERICAN BUSINESS OR TECHNICAL SECRETS FRANCE IS WIDELY CONSIDERED THE MOST BLATANT TRANSGRESSOR BUT SPIES FROM BRITAIN ISRAEL CHINA JAPAN AND SOUTH KOREA ALLEGEDLY ALSO ARE MAJOR PLAYERS IN THIS GAME FOREIGN INTELLIGENCE AGENCIES GENERALLY WORK CLOSELY WITH THEIR BUSINESSMEN SAYS A SENIOR CIA OFFICIAL THE SECOND TASK IS TO FIGHT BRIBERY AND OTHER UNFAIR PRACTICES STRICT US LAWS INHIBIT AMERICAN COMPANIES ON THE PAYOFF FRONT IT WOULD PUT MORE OFFICERS CAREER EMPLOYEES AGENTS OUTSIDE RECRUITS AND OTHER ASSETS INTO THE FRAY TO GATHER DATA ABOUT PRACTICES THAT HARM US BUSINESS INTERESTS ANY USEFUL INFORMATION WOULD BE SENT ELSEWHERE FOR ACTION TO THE STATE OR COMMERCE DEPARTMENTS FOR EXAMPLE OR THE LOCAL US AMBASSADOR THE AGENCY HAS NO PLANS TO ACT DIRECTLY FOR AMERICAN BUSINESS JUST HOW MUCH BIGTIME BRIBERY TAKES PLACE IS UNCLEAR ONE SECRET US TALLY FINDS FEWER THAN 100 CASES IN RECENT YEARS YET STRANGE THINGS DO OCCUR A CURRENT EXAMPLE AN AMERICAN COMPANY IN SOUTHEAST ASIA THOUGHT IT HAD WON A MAJOR GOVERNMENT CONTRACT ONLY TO SEE THE DEADLINE EXTENDED AT THE LAST MINUTE THEN AN OBSCURE GROUP ENTERED AN ALMOST IDENTICAL COMPLEX BID AT A SLIGHTLY LOWER PRICE THE US AMBASSADOR HAS PROTESTED HEATEDLY TO HIS HOST GOVERNMENT ON GROUNDS THAT SECRET TERMS WERE STOLEN FOR THE RIVAL'S BENEFIT THE OUTCOME IS STILL PENDING BUSINESSES AREN'T UNIFORMLY ENTHUSIASTIC ABOUT GETTING HELP AND GUIDANCE FROM THE CIA ONE AGENCY OFFICIAL CONCEDES THERE'S HISTORICAL ANIMOSITY BETWEEN GOVERNMENT AND BUSINESS AND MANY EXECUTIVES DON'T WANT TO BE TAINTED BY ASSOCIATION WITH SPIES PERHAPS THAT'S WHY AMERICAN TELEPHONE & TELEGRAPH CO SAYS WE DON'T NEED THE CIA'S HELP IN THESE KIND OF MATTERS THANK YOU VERY MUCH 9401140160 940114 WHO'S NEWS RYKOFFSEXTON INC RYKOFFSEXTON INC LOS ANGELES DONALD E WILLIS JR 42 YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER A NEWLY CREATED POSITION WITH THIS MAKER AND DISTRIBUTOR OF FOOD AND RELATED PRODUCTS FOR RESTAURANTS INSTITUTIONS AND OTHER LOCATIONS HE PREVIOUSLY WAS SENIOR VICE PRESIDENT INFORMATION SYSTEMS AT HOMEBASE 9401140159 940114 LETTERS TO THE EDITOR WHITHER TRUTH AND JUSTICE I COMMEND PAUL GIGOT ON HIS EXCELLENT DEC 31 POTOMAC WATCH COLUMN JOHN & BILL ANITA & GENNIFER SEX & STANDARDS AMERICANS MUST BE REMINDED OF THE DOUBLE STANDARD LIBERALS USE ABOUT MORALITY AND SEX LAST YEAR NEWS REPORTERS CALLED ME FOR HOW HAS YOUR LIFE BEEN CHANGED SINCE YOU WERE A WITNESS AT THE CLARENCE THOMAS HEARINGS STORIES AS WE APPROACHED THE ANNIVERSARY OF THE THOMAS HEARINGS AND THE LEFT'S ATTACK VIA ANITA HILL ON HIS VERY ESSENCE I WILL NEVER FORGET THE CONVERSATION I HAD WITH A YOUNG WOMAN FROM THE GANNET NEW SERVICE SHE WAS OBSESSED WITH TRYING TO FIND DIRT ON MR THOMAS BUT TOTALLY UNINTERESTED IN LOOKING AT MS HILL I ASKED HER WHY THE PRESS WAS STILL GOING AFTER CLARENCE BUT HAD TOTALLY IGNORED THE EVIDENCE PRESENTED BY DAVID BROCK'S BOOK THE REAL ANITA HILL SHE TOLD ME THAT ANITA'S NOT IMPORTANT BECAUSE SHE DOES NOT HAVE A LIFETIME SUPREME COURT APPOINTMENT I SAID BUT ANITA IS GOING AROUND THE COUNTRY MAKING TENS OF THOUSANDS OF DOLLARS GIVING SPEECHES AND TRYING TO INFLUENCE PUBLIC POLICY WHAT IF ANITA HILL LIED ON THE STAND WHAT IF SHE COMMITTED PERJURY BEFORE A NATIONAL AUDIENCE WOULDN'T THAT BE NEWS THE REPORTER SAID NO IT DOES NOT MAKE ANY DIFFERENCE WHETHER ANITA WAS TELLING THE TRUTH OR NOT THE KEY IS THAT SHE BROUGHT THE ISSUE OF SEXUAL HARASSMENT TO THE PUBLIC'S ATTENTION WELL SO MUCH FOR TRUTH JUSTICE FAIRNESS OR A MAN'S REPUTATION THANKS AGAIN MR GIGOT FOR LETTING US KNOW THAT THERE STILL ARE SOME PEOPLE WHO DESERVE THE TITLE JOURNALIST THREE CHEERS FOR PAUL GIGOT AS A LONGAGO REPORTER FOR THE DETROIT FREE PRESS AND THE LOS ANGELES TIMES IT IS REFRESHING TO READ SOMEONE IN THE MEDIA TODAY WHO ISN'T AN APOLOGIST FOR THE DEMOCRATIC PARTY WHEN IT COMES TO AGGRESSIVE REPORTING OF POLITICAL PECCADILLOS WE HAVE HAD A DOUBLE STANDARD FOR TOO MANY YEARS SEN PACKWOOD'S CONSTITUTIONAL RIGHTS WOULD NOT BE SO GROSSLY VIOLATED TODAY IF HE WERE A DEMOCRAT CONVERSELY YOU CAN IMAGINE THE WHIPPING WANDERING WILLY WOULD BE GETTING TODAY FROM THE WASHINGTON POST AND NEW YORK TIMES CROWD IF HE WERE A REPUBLICAN 9401140158 940114 INTERNATIONAL METALLGESELLSCHAFT SETS SHAREHOLDER VOTE DESPITE WORRIES OVER FINANCIAL PACKAGE BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT METALLGESELLSCHAFT AG SET A PROVISIONAL EXTRAORDINARY SHAREHOLDER'S MEETING FOR FEB 24 TO SEEK APPROVAL OF A PROPOSED SHARE OFFERING IMPLIED IN SETTING THE DATE IS THE BELIEF THAT THE FINANCIALLY STRAPPED GERMAN METALS AND TRADING COMPANY WON'T FILE FOR BANKRUPTCY PROTECTION NEXT WEEK A CRUCIAL DECISION ON A 34 BILLION MARK 196 BILLION FINANCIAL RESCUE PLAN HAD BEEN EXPECTED FROM BANKS YESTERDAY BUT WAS PUSHED BACK TO TOMORROW BECAUSE OF DELAYED RESPONSES AND LASTMINUTE OPPOSITION FROM A GROUP OF FRENCH BANKS METALLGESELLSCHAFT WHICH SAID IT RECEIVED A POSITIVE RESPONSE FROM BANKS AT THE PROPOSAL'S FIRST HEARING LAST WEEK HAS SAID IT WILL FILE FOR BANKRUPTCY IF THE PLAN IS REJECTED UNDER THE PROPOSAL SHAREHOLDERS WILL BE ASKED TO APPROVE THE ISSUANCE OF 56 MILLION NEW SHARES AT 250 MARKS EACH TO RAISE 14 BILLION MARKS THE PLAN ALSO CALLS FOR BANK CREDITORS TO ARRANGE A 700 MILLIONMARK CREDIT LINE AND TO CONVERT 13 BILLION MARKS IN METALLGESELLSCHAFT BANK DEBT INTO CONVERTIBLE PROFITSHARING CERTIFICATES THE COMPANY SAID YESTERDAY IT REMAINED CONFIDENT THAT BANKS AND SHAREHOLDERS WOULD APPROVE THE PACKAGE MAJOR SHAREHOLDERS WHICH ACCOUNT FOR 62 OF METALLGESELLSCHAFT'S EQUITY INCLUDE DEUTSCHE BANK AG DRESDNER BANK AG DAIMLERBENZ AG INSURER ALLIANZ AG AND THE GOVERNMENT OF KUWAIT EACH HAS SIGNALED ACCEPTANCE OF THE NEW SHARE ISSUE AS LONG AS THE BANKS DID THEIR PART BUT THAT WAS FAR FROM CERTAIN YESTERDAY THE CREDIT RESTRUCTURING PLAN WHICH THE COMPANY SAID WEDNESDAY MUST BE UNCONDITIONALLY ACCEPTED AS A PACKAGE BY ALL OF ITS 120 BANK CREDITORS FOR LEGAL REASONS WAS THREATENED WITH UNRAVELING AS SEVERAL BANKS WITHHELD APPROVAL BANKING SOURCES SAID SIX FRENCH BANKS INCLUDING SOCIETE GENERALE CIE STATED THEY WOULD REJECT THE PLAN UNLESS CHANGES WERE MADE CLAIMING THAT SHAREHOLDERS SHOULD BEAR MORE OF THE BURDEN FRENCH BANKERS ALSO CITED INADEQUATE INFORMATION ON THE STATUS OF METALLGESELLSCHAFT'S LOSSES DEUTSCHE BANK AND DRESDNER BANK WERE STILL FIGHTING YESTERDAY TO KEEP THE DEAL FROM UNRAVELING THE TWO BIG FRANKFURT BANKS RUSHED A DELEGATION ONTO A PLANE TO PARIS TO TRY TO PERSUADE FRENCH BANKS TO STAY ABOARD DEUTSCHE BANK WHICH HEADS THE STEERING COMMITTEE OF METALLGESELLSCHAFT BANK CREDITORS ALSO EXTENDED THE DEADLINE FOR RESPONSES FROM US BANKS UNTIL LATE YESTERDAY NORDDEUTSCHE LANDESBANK THE MOST STRIDENT OPPONENT OF THE PLAN AMONG GERMAN BANKS THIS WEEK APPARENTLY WAS BROUGHT BACK INTO THE FOLD AFTER ACHIEVING UNDISCLOSED MODIFICATIONS IN TALKS WITH DEUTSCHE BANK AND DRESDNER BANK OFFICIALS WE WERE ABLE GET AGREEMENT SAID A DEUTSCHE BANK SPOKESMAN WHO ALSO CONFIRMED THE HURRIED TALKS WITH FRENCH BANKS WE STILL HAVE WORK TO DO TO GET EVERYBODY INTO THE BOAT HE SAID AS RECENTLY AS NOVEMBER FEW OUTSIDE THE COMPANY HAD A NOTION ANYTHING WAS WRONG LAST MONTH ITS BOARD SACKED SENIOR MANAGEMENT FOR ALLEGEDLY WITHHOLDING INFORMATION ON THE COMPANY'S FINANCIAL CONDITION IT WENT ON TO DISCOVER THAT THE COMPANY'S EXISTING AND POTENTIAL LOSSES FOR THE PAST FISCAL YEAR TOTALED 18 BILLION MARKS PLUS ANOTHER 15 BILLION MARKS IN POTENTIAL OIL TRADING LOSSES METALLGESELLSCHAFT SHARES WHICH WERE SUSPENDED FROM TRADING YESTERDAY IN ANTICIPATION OF A DECISION FROM THE BANKS HAD BEEN SUPPORTED BY SPECULATION OF AN APPROVED FINANCIAL PLAN IT CLOSED WEDNESDAY AT 226 MARKS A SHARE UP FROM LESS THAN 200 MARKS LATE LAST WEEK 9401140157 940114 KNIGHTRIDDER BUYS COMPANY MIAMI KNIGHTRIDDER INC A MEDIA CONCERN ACQUIRED TECHNIMETRICS INC FINANCIAL TERMS WERE NOT DISCLOSED TECHNIMETRICS IS A NEW YORK INFORMATIONSERVICES COMPANY SPECIALIZING IN FINANCIAL DATABASES 9401140156 940114 BUSINESS BRIEF SKOLNIKS INC BOOST IN BAGEL DISTRIBUTION TO RESULT FROM AGREEMENTS SKOLNIKS INC SAID IT REACHED AGREEMENTS WITH TWO DISTRIBUTORS THAT MORE THAN DOUBLES THE NUMBER OF SUPERMARKETS AND CONVENIENCE STORES TO WHICH ITS BAGELS WILL BE DELIVERED THE BAGEL AND SPREAD MAKER SAID 2400 NEW LOCATIONS ARE ADDED THROUGH WALMART STORES INC'S MCLANE DISTRIBUTION DIVISION AND 1200 MORE LOCATIONS THROUGH COREMARK INTERNATIONAL INC A CLOSELY HELD DISTRIBUTOR BASED IN SAN FRANCISCO SKOLNIKS SAID IT ALSO HAS COMMITMENTS FROM 7000 ADDITIONAL LOCATIONS THAT WILL BEGIN RECEIVING DELIVERIES WITHIN 90 DAYS EITHER THROUGH MCLANE COREMARK FLEMING COS OR SCRIVNER INC SKOLNIKS BASED IN OKLAHOMA CITY QUADRUPLED ITS BAGELMAKING CAPACITY TO 25 MILLION BAGELS A WEEK LAST MONTH WITH THE OPENING OF A NEW PLANT IN NEW JERSEY 9401140155 940114 WARNACO TO BUY UNDERWEAR UNIT FROM CALVIN KLEIN BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WARNACO GROUP INC PLANS TO ACQUIRE THE LUCRATIVE UNDERWEAR BUSINESS OF CALVIN KLEIN INC IN A TRANSACTION VALUED AT CLOSE TO 70 MILLION ACCORDING TO PEOPLE INVOLVED IN THE TALKS WARNACO AN APPAREL MANUFACTURER DECLINED COMMENT AND CALVIN KLEIN EXECUTIVES COULD NOT BE REACHED FOR COMMENT LATE YESTERDAY BUT THE PEOPLE INVOLVED IN THE TALKS SAID WARNACO HAS COMPLETED NEGOTIATIONS ON THE TRANSACTION AND COULD ANNOUNCE IT EARLY NEXT WEEK UNDER THE AGREEMENT WARNACO WOULD PURCHASE THE UNDERWEAR BUSINESS OF CLOSELY HELD CALVIN KLEIN EXACT TERMS OF THE ACQUISITION COULD NOT BE LEARNED YESTERDAY CALVIN KLEIN UNDERWEAR MAKES PRODUCTS FOR BOTH MEN AND WOMEN AND IS BEST KNOWN FOR ITS SLICK BLACKANDWHITE PRINT ADS FEATURING SCANTILY CLAD MALE AND FEMALE MODELS FOR WARNACO THE PURCHASE FITS WITH CHAIRMAN AND CHIEF EXECUTIVE LINDA WACHNER'S STRATEGY OF EXPANDING INTO HIGHPROFILE BRANDS WARNACO IS ALREADY A MARKET LEADER IN WOMEN'S INTIMATE APPAREL SUCH AS BRAS AND UNDERWEAR WHICH IT SELLS UNDER THE WARNER AND OLGA BRAND NAMES IT ALSO SELLS MENSWEAR SUCH AS HATHAWAY SHIRTS CHRISTIAN DIOR TIES AND CASUAL WEAR FROM PURITAN AND CHAPS BY RALPH LAUREN CASH FROM THE PURCHASE WOULD ALLOW CALVIN KLEIN TO RETIRE ITS DEBT PRIMARILY CONSISTING OF APPROXIMATELY 55 MILLION IN JUNKBOND DEBT WHICH THE COMPANY REPURCHASED FROM HOLLYWOOD FIGURE DAVID GEFFEN LAST SUMMER MR GEFFEN A LONGTIME FRIEND OF THE DESIGNER MR KLEIN HAD PURCHASED THE DEBT IN 1992 AND SAID AT THE TIME HE WAIVED REPAYMENT OF THE PRINCIPAL FOR SEVERAL YEARS TO HELP GIVE THE DESIGNER BREATHING ROOM DURING A DIFFICULT PERIOD THE JUNKBOND DEBT STEMMED FROM CALVIN KLEIN'S 1983 PURCHASE OF PURITAN FASHIONS INC CALVIN KLEIN SOLD THE DEBT TO MR GEFFEN BECAUSE IT WAS HAVING TROUBLE MEETING DEBT PAYMENTS DUE TO SETBACKS IN ITS BASIC SPORTSWEAR BUSINESS WHICH IN 1990 ACCOUNTED FOR ABOUT 80 OF ITS ANNUAL SALES OF ABOUT 200 MILLION BUT PEOPLE FAMILIAR WITH THE COMPANY SAY ITS BUSINESS IS IN MUCH BETTER SHAPE NOW AND RETIRING THE DEBT WILL FREE IT TO MAKE OTHER SIGNIFICANT MOVES 9401140154 940114 DIVIDEND NEWS STATESMAN GROUP INC STATESMAN GROUP INC DES MOINES IOWA DECLARED A DIVIDEND OF 10 CENTS ON COMMON STOCK PAY FEB 14 TO RECORD JAN 31 THE FINANCIAL SERVICES HOLDING COMPANY WHICH DOESN'T HAVE A REGULAR DIVIDEND SAID THE SPECIAL PAYOUT RECOGNIZES THE COMPANY'S ACCOMPLISHMENTS AND REFLECTS THE CONFIDENCE OF OUR BOARD OF DIRECTORS IN THE COMPANY'S FINANCIAL CONDITION AND FUTURE EARNINGS PROSPECTS THE COMPANY'S LAST DIVIDEND WAS 5 IN STOCK PAID IN DECEMBER STATESMAN ALSO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION COMMON SHARES OR ABOUT 75 OF ITS APPROXIMATELY 134 MILLION SHARES OUTSTANDING THE COMPANY SAID THE PURCHASE PROGRAM WILL BE IN EFFECT FOR THE REMAINDER OF 1994 SHARES ACQUIRED UNDER THE PROGRAM WILL BE USED FOR GENERAL CORPORATE PURPOSES THE COMPANY SAID 9401140153 940114 THEY DESERVE AN A FOR ENTERPRISE BUT THEY COULD FLUNK FLEXIBILITY BY MARJORIE NEEDHAM STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AT THEIR MOST CREATIVE THE DOGATEMYHOMEWORK CROWD PROBABLY COULDN'T COME UP WITH THE EXCUSE EL PASO TEXAS SCHOOL OFFICIALS ARE USING TO REQUEST RESCHEDULING OF A MAY 10 STATEWIDE TEST THERE'S A SOLAR ECLIPSE THAT DAY AFTER AN EXCITING MORNING OF VIEWING THE ECLIPSE IT IS DOUBTFUL THAT THE AFTERNOON WOULD BE AN OPTIMUM TIME FOR OUR CHILDREN TO TEST IS HOW EL PASO INDEPENDENT SCHOOL DISTRICT SUPERINTENDENT STAN PAZ PUT IT IN A LETTER TO THE TEXAS EDUCATION AGENCY HE ASKED THE AGENCY TO RESCHEDULE THE READING PORTION OF THE ANNUAL TEXAS ASSESSMENT OF ACADEMIC SKILLS TEST TO MAY 12 DR PAZ HAS SCIENCE ON HIS SIDE ON MAY 10 EL PASO WILL BE IN THE DIRECT PATH OF AN ANNULAR SOLAR ECLIPSE MEANING THE MOON'S SHADOW WILL ALMOST BLOCK OUT THE SUN IT WILL LOOK AS THOUGH A BIG BLACK DOT IS COVERING THE SUN SAYS JOHN PETERSON WHO RUNS THE SCHOOL DISTRICT'S PLANETARIUM AND BROUGHT THE ECLIPSE/TEST CONFLICT TO LIGHT THE PARENTS IN EL PASO BACK DR PAZ THIS IS AN EDUCATIONAL EXPERIENCE WELL WORTH RESCHEDULING THE TAAS TESTS OVER SAYS FRANCIE MCINTOSH PRESIDENT OF A PARENTS ASSOCIATION AND MOTHER OF TWO CHILDREN IN EL PASO SCHOOLS IT'S NOT LIKE WE PLANNED THE SOLAR ECLIPSE SHE ADDS HARDLY EL PASO WAS LAST IN THE DIRECT PATH OF A SOLAR ECLIPSE IN 1821 AND WON'T BE AGAIN UNTIL 2165 MR PETERSON SAYS SO THE RARE ECLIPSE JUST MIGHT RATTLE SOME OF THE THIRDTOEIGHTH GRADERS WHO HAVE TO BE TESTED AND LOW TAAS TEST SCORES WOULD RATTLE THEIR TEACHERS SCORES BECOME PUBLIC KNOWLEDGE IN TEXAS AND CHRONICALLY LOW ONES CAN LEAD TO A SCHOOL'S CLOSING NONE OF WHICH SEEMS TO BE SWAYING THE TEA THE ECLIPSE IS ONLY FOR ABOUT 7 1/2 MINUTES AT 1045 SAYS TEA SPOKESWOMAN DELLA MAE MOORE THE TEA HAS OFFERED TO LET THE SCHOOL DISTRICT START THE TEST EARLY BREAK FOR THE ECLIPSE THEN RESUME OR THE AGENCY SAYS POSTPONE THE TEST UNTIL AFTERNOON THOUGH THE TEA HAS BEEN KNOWN TO CHANGE TEST DATES MISS MOORE SAYS YOU HAVE TO LOOK AT THE OVERALL EFFECTS ON TEST SECURITY FOR THE 22 MILLION TEST TAKERS WHILE EL PASO HAS A FRONTROW SEAT THE ECLIPSE WILL BE EVIDENT ALL OVER THE US IT'S WORTH A MONTH OF REGULAR ASTRONOMY INSTRUCTION TO SEE AN ECLIPSE SAYS CAROLYN SUMNERS DIRECTOR OF ASTRONOMY AT THE HOUSTON MUSEUM OF NATURAL SCIENCE IN FACT SHE NOTES A TAAS SAMPLE TEST LAST YEAR HAD A QUESTION ABOUT THE ALIGNMENT OF THE EARTH MOON AND SUN IN AN ECLIPSE 9401140152 940114 INTERNATIONAL EU'S BRITTAN URGES SHIFT IN AID FOR EASTERN EUROPE BRUSSELS THE EUROPEAN UNION'S TOP TRADE OFFICIAL IS CALLING FOR A SHIFT IN EU AID FOR EASTERN EUROPE TOWARD MORE PROJECTS THAT WOULD MEET THE REAL NEEDS OF AVERAGE CITIZENS SIR LEON BRITTAN THE EU COMMISSIONER FOR EXTERNAL ECONOMIC RELATIONS PLANS TO PUSH IN A SPEECH IN SCOTLAND TODAY THE NEED TO BROADEN THE EU'S AID EFFORTS BEYOND THE LARGELY TECHNICAL ASSISTANCE IT HAS PROVIDED SINCE COMMUNISM'S COLLAPSE SOURCES SAID THE NEW INITIATIVE HAS BEEN UNDER DEVELOPMENT FOR SOME TIME BUT ITS UNVEILING IS TIMED TO COINCIDE WITH PRESIDENT CLINTON'S TRIP TO EUROPE SIR LEON PLANS TO HIGHLIGHT THE EU'S LEADING ROLE IN PROVIDING AID FOR THE FORMER EAST BLOC BUT TO ADVOCATE NEW DIRECTIONS IN A PROGRAM OFTEN CRITICIZED FOR A BLOATED BUREAUCRACY AND FOR PROVIDING FEW TANGIBLE BENEFITS FOR THE REGION'S CITIZENS IT'S IMPORTANT THAT PEOPLE IN RUSSIA AND THE OTHER COUNTRIES OF EASTERN EUROPE SEE THE ACTUAL BENEFITS OF OUR AID PROGRAMS ONE BRITTAN AIDE SAID SIR LEON PLANS TO HIGHLIGHT THE NEED FOR EU AID PROGRAMS TO PROVIDE SOME OF THE SOCIAL SERVICES THAT FORMERLY FLOWED FROM STATEOWNED INDUSTRIES PEOPLE FAMILIAR WITH THE SPEECH SAID 9401140151 940114 INTERNATIONAL EURO DISNEY STOCK JUMPS ON STRONG OUTLOOK FOR PARK PARIS EURO DISNEY SCA STOCK JUMPED 43 THANKS TO A STRONG OUTLOOK FOR ATTENDANCE AT THE COMPANY'S THEME PARK ON THE OUTSKIRTS OF PARIS SHARES IN THE PARK AND HOTEL OPERATOR CLOSED AT 362 FRANCS 614 UP 15 FRANCS TRADERS IN PARIS SAID THE STOCK RECEIVED A BOOST FROM A REPORT YESTERDAY MORNING IN THE WALL STREET JOURNAL EUROPE THAT THE PARK IS ENJOYING STRONG ATTENDANCE AND THAT TOUR OPERATORS PREDICT GROWING SALES OF EURO DISNEY HOLIDAY PACKAGES BUT ANALYSTS EXPRESSED SKEPTICISM ABOUT THE SHARES SAYING BUYERS MAY BE MISLED IF THEY VIEW STRONG ATTENDANCE AS A PANACEA FOR THE PARK'S PROBLEMS IT'S A BIT LIKE A THEATER SHOW SOMETIMES PEOPLE GO IN TO SEE IT WHEN THEY HEAR IT'S ABOUT TO CLOSE SAID NIGEL REED OF PARIBAS CAPITAL MARKETS IN LONDON INSTEAD MR REED SAID INVESTORS SHOULD AWAIT NEWS ON THE RESTRUCTURING OF EURO DISNEY'S TROUBLED FINANCES EURO DISNEY IS IN TALKS WITH ITS BANKERS AND WALT DISNEY CO WHICH OWNS 49 OF THE EUROPEAN COMPANY'S SHARES ALMOST ANY REORGANIZATION PLAN POSSIBLE WOULD DILUTE THE STOCK DRAMATICALLY NOTED JACK HERSCH RESEARCH DIRECTOR AT MJ WHITMAN IN NEW YORK EURO DISNEY REPORTED A LOSS OF 53 BILLION FRANCS FOR THE YEAR ENDED SEPT 30 INCLUDING A ONETIME CHARGE OF 36 BILLION FRANCS TO WRITE OFF THE PARK'S STARTUP COSTS 9401140150 940114 AMERICANS STILL GO SOUTH QUIT NORTHEAST US FINDS WASHINGTON AMERICANS ARE STILL MOVING TO THE SOUTH AND OUT OF THE NORTHEAST BUT HAVE SLOWED THEIR OVERALL MOVING AROUND OVERALL MOBILITY IN 1991 AND 1992 DECLINED SIGNIFICANTLY FROM THE SIX PRIOR YEARS A REPORT FROM THE US CENSUS BUREAU SHOWS BETWEEN MARCH 1991 AND MARCH 1992 428 MILLION PEOPLE CHANGED RESIDENCES OR 17 OF THE TOTAL POPULATION THE PEAK PERCENTAGE OF MOVES OCCURRED IN 196061 WHEN 206 OF THE POPULATION CHANGED RESIDENCES CLOSELY FOLLOWED BY 198485 WHEN 202 OF THE POPULATION MOVED IN THE LATEST SURVEY MOST OF THE MOVERS PACKED UP FOR HOMES OR APARTMENTS ACROSS TOWN 266 MILLION PEOPLE OR 107 OF THE TOTAL POPULATION MOVED WITHIN THE SAME COUNTY MOST OF THESE MOVES THE CENSUS BUREAU SAID WERE PROBABLY PROMPTED BY MARRIAGES DIVORCES BIRTHS OR OTHER EVENTS THAT ALTER HOUSING NEEDS IN CONTRAST 6 OF THE POPULATION MOVED TO A DIFFERENT COUNTY AND 29 MOVED TO A DIFFERENT STATE NOT SURPRISINGLY YOUNG ADULTS MOVED AROUND THE MOST ONETHIRD OF ALL PEOPLE IN THEIR TWENTIES CHANGED ADDRESSES THE SOUTH WHICH BEGAN EXPERIENCING NET NEW RESIDENTS DURING THE 1960S SAW A NET GAIN OF 224000 NEW RESIDENTS IN 199192 THE NORTHEAST MEANWHILE EXPERIENCED A NET LOSS OF 292000 ROUGHLY THE SAME AMOUNT OF PEOPLE MOVED INTO AND OUT OF THE MIDWEST AND THE WEST 9401140149 940114 INTERNATIONAL U S WEST IN UNUSUAL MANEUVER RAISES 125 MILLION FOR ITS RUSSIAN VENTURES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON U S WEST INC HAS FIGURED OUT A WAY TO HAVE ITS CAKE IN RUSSIA AND EAT IT TOO IN AN UNUSUAL FINANCIAL GAMBIT ANNOUNCED YESTERDAY THE ENGLEWOOD COLOBASED TELECOMMUNICATIONS COMPANY RAISED 125 MILLION FOR ITS FASTGROWING RUSSIAN VENTURES WITHOUT SUBSTANTIALLY INCREASING ITS OWN RISKS OF DOING BUSINESS THERE OVER THE PAST FIVE YEARS U S WEST HAS EMERGED AS ONE OF THE MOSTACTIVE PLAYERS IN EAST EUROPEAN TELECOMMUNICATIONS BUT ALSO HAS BEEN FINANCIALLY ASTUTE COMMITTING JUST 80 MILLION OF ITS OWN CAPITAL TO AMASS MORE CELLULARTELEPHONE FRANCHISES IN THE REGION THAN ANY OTHER COMPANY IN RUSSIA WHERE THE COMPANY IS EAGER TO GROW FASTER BUT IS CAUTIOUS ABOUT RISKING TOO MUCH CASH ITS NEW GAMBIT IS TO PUT ALL OF ITS FASTGROWING HOLDINGS INTO A SEPARATE NEWLY CREATED COMPANY WHICH IT CALLS RUSSIAN TELECOMMUNICATIONS DEVELOPMENT CORP IT RETAINED A 71 STAKE IN THE NEW COMPANY AND HIRED INVESTMENT BANK CS FIRST BOSTON TO PEDDLE THE REMAINING 29 TO BIG INVESTORS AROUND THE WORLD SEVEN WESTERN FIRMS BARING INTERNATIONAL INVESTMENT CAPITAL RESEARCH INTERNATIONAL EMERGING MARKETS INVESTORS GT CAPITAL INVESCO CEAM MONTGOMERY ASSET MANAGEMENT AND MORGAN STANLEY ASSET MANAGEMENT PLEDGED A TOTAL OF 40 MILLION TO BUY THE SHARES A US GOVERNMENT LENDING ARM THE OVERSEAS PRIVATE INVESTMENT CORP OFFERED TO LOAN THE VENTURE 75 MILLION AND PROVIDE 10 MILLION IN DEBT SECURITIES CONVERTIBLE INTO EQUITY U S WEST SAID THE VENTURE WILL RAISE MORE CASH UP TO 500 MILLION BY BORROWING MORE MONEY AND REINVESTING ALL OF ITS PROFITS OF COURSE IN THE WEST SUCH PRIVATE PLACEMENTS OF STOCK TO INSTITUTIONAL INVESTORS HAPPEN ALL THE TIME BUT BUSINESS CONSULTANTS DESCRIBED THE VENTURE AS NOVEL FOR RUSSIA IT SOUNDS SUPER SAID DAVID PITTWATSON A DIRECTOR OF BRAXTON ASSOCIATES A CONSULTING UNIT OF ACCOUNTANTS DELOITTE & TOUCHE I'VE HEARD OF LOTS OF REASONABLY CREATIVE FINANCING BUT I'VE NEVER HEARD OF ANYTHING LIKE THAT IN RUSSIA HE SAID IN A RISKY ENVIRONMENT IT'S A RELATIVELY LOWRISK PROPOSITION OBSERVED MICHAEL OBERMAYER SENIOR PARTNER IN CHARGE OF EASTERN EUROPE FOR MCKINSEY & CO AN INTERNATIONAL MANAGEMENT CONSULTING FIRM THAT ISN'T INVOLVED IN THE VENTURE TO RAISE THE MONEY A COMPANY SPOKESMAN SAID U S WEST DIDN'T TAKE ON ANY SUBSTANTIAL EXTRA RISK ONLY ITS EXISTING RUSSIAN ASSETS AND THEIR FUTURE PROFITS WHICH U S WEST HAS PLEDGED TO REINVEST IN THE VENTURE ARE AT RISK U S WEST'S BOOKS WILL RECORD A GAIN ON THE TRANSFER WHICH IT WILL SPREAD OUT OVER A FEW YEARS THE SPOKESMAN SAID U S WEST HAS INVESTED ABOUT 50 MILLION IN RUSSIA BUT IN THE PAST FEW YEARS OF OPERATION THERE ITS ASSETS HAVE GROWN IN VALUE TO A LITTLE MORE THAN 100 MILLION THE SPOKESMAN SAID THEY INCLUDE CELLULARTELEPHONE FRANCHISES IN EIGHT RUSSIAN CITIES PLUS A VENTURE WITH RUSSIA'S LONGDISTANCE PHONE COMPANY ROSTELECOM THAT CONNECTS MOST OF THE COUNTRY'S TELEPHONE CALLS TO THE WEST OVERSEAS PRIVATE INVESTMENT'S INVOLVEMENT MAY HAVE BEEN KEY TO ATTRACTING THE PRIVATE INVESTORS THE US GOVERNMENT AGENCY HAS SAID IT WILL CONSIDER INSURING THE U S WEST VENTURE AGAINST CERTAIN POLITICAL RISKS IN RUSSIA THE U S WEST SPOKESMAN SAID AFTER NATURAL RESOURCES TELECOMMUNICATIONS IS ONE OF THE MOSTPROMISING INDUSTRIES IN RUSSIA MOSCOW HAS LAUNCHED A MASSIVE DRIVE TO YANK THE COUNTRY'S PHONE SYSTEM OUT OF ITS ABYSMAL STATE OF POOR CONNECTIONS OVERLOADED EXCHANGES AND JUST 153 PHONE LINES PER 100 INHABITANTS ABOUT THE LEVEL OF URUGUAY OR DOMINICA UPGRADING THE SYSTEM TO A EUROPEAN AVERAGE LEVEL COULD COST AS MUCH AS 120 BILLION AND SCORES OF WESTERN COMPANIES ARE HUSTLING FOR THE WORK TO START THE MODERNIZATION MOSCOW HAS HATCHED A BOLD PLAN TO RAISE AND SPEND 40 BILLION OVER TEN YEARS IT CALLS THE PROJECT 50X50 FOR THE 50 LONGDISTANCE TELEPHONE EXCHANGES AND 50000 KILOMETERS OF LONGDISTANCE LINES ENVISIONED AND U S WEST IS AMONG THREE WESTERN COMPANIES THAT MOSCOW HAS SELECTED TO ADVISE ON THE PROJECT THE OTHERS ARE DEUTSCHE BUNDESPOST TELEKOM AND FRANCE TELECOM VICTOR PAVLENKO PRESIDENT OF U S WEST'S OPERATIONS IN RUSSIA AND ALSO PRESIDENT OF THE NEW VENTURE CONFIRMED THAT 50X50 IS ONE OF THE PROJECTS IN WHICH THE VENTURE IS INTERESTED IN INVESTING 9401140148 940114 WHO'S NEWS KENFIL INC KENFIL INC VAN NUYS CALIF PETER SH GRUBSTEIN 38 YEARS OLD A DIRECTOR WAS APPOINTED TO ACT AS INTERIM CHIEF OPERATING OFFICER OF THIS MICROCOMPUTER SOFTWARE CONCERN ALEXANDER PAPAKYRIAKOU 39 RESIGNED AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER TO PURSUE OTHER INTERESTS 9401140147 940114 NEWSPAPERS SAW REBOUND BEGIN IN 4TH QUARTER DOUBLEDIGIT PROFIT GAINS FOR MOST PUBLISHERS PREDICTED BY ANALYSTS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE LONGAWAITED TURNAROUND IN THE NEWSPAPER INDUSTRY FINALLY OCCURRED IN THE FOURTH QUARTER MANY ANALYSTS AGREE WITH MOST PREDICTING HEALTHY DOUBLEDIGIT EARNINGS INCREASES FOR MOST OF THE MAJOR PUBLISHERS FOR THE NEWSPAPER INDUSTRY THE TURN IS DEFINITELY HERE THE QUESTION REMAINING IS HOW BIG OF A TURN IT WILL BE SAYS KENNETH BERENTS MANAGING DIRECTOR AND MEDIA ANALYST FOR WHEAT FIRST BUTCHER & SINGER BASED IN RICHMOND VA THIS IS THE BEST OUTLOOK I'VE SEEN FOR A NUMBER OF YEARS JOHN MORTON MEDIA ANALYST FOR LYNCH JONES & RYAN IN NEW YORK CONCURS THE CHRISTMAS SEASON IS WHEN NEWSPAPERS MAKE A LOT OF THEIR MONEY AND IT WAS A GOOD SHOPPING SEASON MOST PLACES AROUND THE COUNTRY SAID MR MORTON IN ADDITION HE SAYS CLASSIFIED ADVERTISING FINALLY BEGAN PICKING UP AT PAPERS AROUND THE COUNTRY DURING THE FOURTH QUARTER WHICH IS WHY MOST PEOPLE ARE CONFIDENT THE RECOVERY IS REALLY HERE KEVIN GRUNEICH A MANAGING DIRECTOR OF FIRST BOSTON CORP SAID THAT IN THE AREA OF CLASSIFIED ADS HELPWANTED ADS WERE UP FOR THE FIRST THREE QUARTERS OF 1993 BUT IN THE LAST QUARTER THE ADDITIONAL CLASSIFIED CATEGORIES OF REAL ESTATE AND AUTOMOBILES WERE ALSO PICKING UP IN MANY PARTS OF THE COUNTRY WHEN YOU COMBINE RISING ADVERTISING WITH THE COSTCUTTING THAT'S BEEN DONE AND THE FACT THAT NEWSPRINT PRICES HAVEN'T RISEN MUCH YOU GET SOME PRETTY DECENT PROFIT COMPARISONS SAID MR GRUNEICH MR MORTON OF LYNCH JONES EXPECTS MIAMIBASED KNIGHTRIDDER INC TO REPORT FOURTHQUARTER PERSHARE EARNINGS OF 90 CENTS A SHARE UP FROM 79 CENTS HE ALSO EXPECTS AH BELO CORP OF DALLAS TO REPORT 73 CENTS A SHARE UP FROM 56 CENTS AND PROFITS AT CHICAGO'S TRIBUNE CO TO RISE TO 70 CENTS FROM 53 CENTS LIKE MANY ANALYSTS MR MORTON IS BULLISH ON ARLINGTON VABASED GANNETT CO WHOSE EARNINGS HE EXPECTS TO RISE TO 85 CENTS A SHARE FROM 79 CENTS SOME FORECASTS FOR GANNETT ARE MORE BULLISH SUCH AS THAT OF DORLAINE MCLAUGHLIN OF JP MORGAN SECURITIES INC WHO EXPECTS GANNETT TO RISE TO 90 CENTS A SHARE GANNETT HAS A LOT OF SMALL PAPERS THAT ARE GEOGRAPHICALLY DIVERSIFIED AND WILL GET A BOOST FROM THE IMPROVING ECONOMY SAID MS MCLAUGHLIN SECONDLY USA TODAY FINALLY BECAME PROFITABLE IN 1993 IN SOME PARTS OF THE COUNTRY THE ECONOMY ISN'T REBOUNDING AS BRISKLY AND THUS SOME NEWSPAPERS ARE STILL SUFFERING FROM SLUGGISH AD SALES BUT EVEN IN CASES SUCH AS TIMES MIRROR CO BASED IN LOS ANGELES AND AFFECTED GREATLY BY THE TORPID CALIFORNIA ECONOMY MOST ANALYSTS AREN'T AS BEARISH AS THEY HAVE BEEN MICHAEL KUPINSKI A MEDIA ANALYST FOR AG EDWARDS & SONS INC EXPECTS TIMES MIRROR TO REPORT FOURTHQUARTER PROFIT OF 40 CENTS A SHARE VS YEARAGO PROFIT OF 33 CENTS A SHARE FROM CONTINUING OPERATIONS THE COMPANY REPORTED A NET LOSS OF 50 CENTS INCLUDING WRITEOFFS FROM DISCONTINUED BUSINESSES IT IS STILL LAGGING BEHIND THE GROUP BUT IT IS STARTING TO SHOW SOME SIGNS OF IMPROVEMENT SAYS MR KUPINSKI HE IS RECOMMENDING THE STOCK BECAUSE HE BELIEVES THE COMPANY'S SITUATION WILL IMPROVE CONSIDERABLY BY THE END OF THIS YEAR HELPED BY THE OVERALL ECONOMY AND THE FACT THAT THE COMPANY IS A GOODSIZE CABLE OPERATOR THE COMPANY HAS SAID IT MAY SELL OR SPIN OFF ITS CABLE ASSETS DESPITE THEIR GENERAL BULLISHNESS SOME ANALYSTS WORRY THAT THE STOCK MARKET HAS DRIVEN UP TOO RAPIDLY THOSE NEWSPAPER COMPANIES WITH CABLE TELEVISION HOLDINGS AMONG THOSE WITH CABLE DIVISIONS ARE TIMES MIRROR EW SCRIPPS CO MEDIA GENERAL INC WASHINGTON POST CO AND KNIGHTRIDDER IN A RECENT INDUSTRY REPORT MR MCLAUGHLIN OF JP MORGAN WARNED WE BELIEVE THE MARKET HAS OVERVALUED NEWSPAPER COMPANIES WITH CABLE SUBSIDIARIES BECAUSE IT WILL BE MORE DIFFICULT FOR THOSE COMPANIES VS PURE PLAY CABLE OPERATORS TO SELL CABLE ASSETS IN A TAXEFFICIENT MANNER NONETHELESS MOST ANALYSTS PROJECT GOOD EARNINGS GAINS FOR THE NEWSPAPER COMPANIES IN 1994 IT WON'T BE AS SPECTACULAR AS IN PAST ECONOMIC RECOVERIES BUT WE EXPECT CONTINUED MODEST GROWTH THIS YEAR SAID MR MORTON OF LYNCH JONES WE EXPECT OVERALL ADVERTISING LINAGE TO GROW ABOUT 4 OR 5 AND NEWSPAPER REVENUES TO RISE ABOUT 9 OR 10 9401140146 940114 ECONOMY RETAIL SALES ROSE IN LATEST MONTH AT HEALTHY CLIP FULL YEAR'S 62 GROWTH IS BEST IN FOUR YEARS INTEREST RATES ARE CITED BY DAVID WALL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RETAIL SALES CONTINUED TO RISE IN DECEMBER AND SALES FOR ALL OF 1993 SHOWED THE STRONGEST ANNUAL INCREASE IN FOUR YEARS THE COMMERCE DEPARTMENT SAID SPURRED BY A JUMP IN DEMAND FOR BUILDING MATERIALS AND APPLIANCES SALES LAST MONTH CLIMBED 08 AFTER RISING 03 THE MONTH BEFORE SALES FOR ALL 1993 ROSE 62 SALES OF DURABLE GOODS ROSE 17 LAST MONTH AS CONSUMERS TOOK ADVANTAGE OF LOW INTEREST RATES TO IMPROVE OR FURNISH THEIR HOMES SALES OF BUILDING MATERIALS ROSE 27 AND FURNITURE SALES INCREASED 18 AUTO SALES WERE UP 12 FROM NOVEMBER THE CONSUMER'S WALLET IS STILL OPEN SAID ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST CO IN CHICAGO ADDING THAT DESPITE CONCERNS ABOUT A SLOWING IN DECEMBER WE DIDN'T GET IT HE PREDICTED CONTINUED STRONG SALES OF BUILDING SUPPLIES AND APPLIANCES AS THE ECONOMY FEELS THE EFFECTS OF THE HOUSINGSTARTS INCREASE OF SEVERAL MONTHS AGO BUT HE SAID RETAIL SALES COULD SUFFER IN THIS YEAR'S FIRST QUARTER BECAUSE OF BAD WEATHER OR OTHER REASONS PEOPLE THIS CHRISTMAS WERE MORE INTERESTED IN THE HARD GOODS SAID RON PIENCYKOSKI CHIEF OF THE COMMERCE DEPARTMENT'S RETAILSALES AND INVENTORIES BRANCH CONSUMERS' SPENDING ON BIGTICKET ITEMS CAME AT THE EXPENSE OF SPENDING ON OTHER GOODS RETAIL SALES OF NONDURABLE GOODS INCREASED ONLY 03 FROM NOVEMBER'S FIGURE REFLECTING SHARP DECLINES IN RETAIL SALES OF CLOTHING WHICH FELL 09 AND GENERAL MERCHANDISE WHICH WAS DOWN 03 YOU DON'T BUY APPAREL IN THE SAME MONTH YOU BUY A NEW CAR SAID MR DEDERICK THERE'S A LIMIT ON WHAT PEOPLE CAN SPEND SO YOU SEE A CROWDING OUT OF SOFT GOODS ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATION BEFORE SEASONAL ADJUSTMENT RETAIL SALES TOTALED 21826 BILLION LAST MONTH UP FROM 18113 BILLION IN NOVEMBER SALES FOR ALL OF 1993 TOTALED 2084 TRILLION UP FROM 1955 TRILLION IN 1992 WHEN SALES ROSE 48 9401140145 940114 LETTERS TO THE EDITOR STABLE MONEY IS A MORAL COMMITMENT ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE BOARD IS RIGHT TO RESIST THE CLINTON ADMINISTRATION'S PLAN TO IMPOSE A SINGLE BANK REGULATOR ABOVE THE FED THE FDIC THE COMPTROLLER OF THE CURRENCY AND THE OTS NO SINGLE REGULATOR FOR BANKS EDITORIAL PAGE DEC 15 THE PRETENSE THAT AN INEFFICIENT REGULATORY REGIMEN CAN BE IMPROVED BY ADDING ONE MORE LAYER OF REGULATION IS WRONG SUBORDINATING THE FED TO AN OVERARCHING REGULATORY APPARATUS FOR NARROW SHORTTERM POLITICAL PURPOSES WOULD BE HARMFUL NOT ONLY TO THE NATIONAL ECONOMY BUT TO THE URBAN AND RURAL POOR SINGLE MOTHERS AND MINORITIES ON THE ECONOMIC MARGINS WHO HAVE THE MOST TO LOSE FROM INFLATION AND HIGH LONGTERM INTEREST RATES FROM DE TOCQUEVILLE TO HAYEK THE GREATEST OBSERVERS OF POLITICAL ECONOMY HAVE ARGUED THAT THE MORE CENTRALIZED ADMINISTRATIVE REGULATION BECOMES THE LESS RESPONSIVE IT IS TO THE VITAL NEEDS OF SOCIETY OVERREGULATION MAKES FINANCIAL INSTITUTIONS MORE CONSERVATIVE TIMID AND UNWILLING TO TAKE RISKS OF INNOVATION EITHER IN THE FORMS OF SAVINGS AND CREDIT OR IN THEIR OWN INVESTMENT STRATEGIES NUMEROUS STUDIES SHOW A LACK OF AVAILABLE CREDIT IN MINORITY COMMUNITIES THE AUTOMATIC EXPLANATION OF THIS OUTCOME IS THAT IT IS PRODUCED BY RACIAL BIAS WHAT IS UNEXAMINED HOWEVER IS THE ROLE OF EXCESSIVE REGULATION IN DISCOURAGING INSTITUTIONS FROM PROVIDING CREDIT TO MINORITY ENTERPRISES AND HOME OWNERS ESPECIALLY IN HIGH RISK URBAN AREAS JUST AS THE ADMINISTRATION'S EFFORT TO CENTRALIZE BANKING REGULATION IS MISGUIDED SO ITS MONETARY POLICIES ARE MISCHIEVOUS MONEY AFTER ALL REPRESENTS ONE OF THE MOST SOLEMN MORAL COMMITMENTS A GOVERNMENT CAN MAKE THE PROMISE THAT THE NATION'S MONEY WILL HOLD THE SAME VALUE AS FAR INTO THE FUTURE AS THE EYE CAN SEE ANYTHING LESS OR MORE THAN THAT FOR EXAMPLE POLICIES THAT CAUSE PRICE LEVEL INFLATION OR DEFLATION UNJUSTLY REVOKES THAT PROMISE AND DEFRAUDS THE PUBLIC OF EXPECTATIONS ON WHICH BY VIRTUE OF THEIR LABOR SAVINGS AND INVESTMENT THEY HAVE A NATURAL RIGHT TO EXPECT WHEN THE CENTRAL BANK FOR WHATEVER REASON ADOPTS POLICIES AIMED AT ANY GOAL OTHER THAN LONGTERM PRICE STABILITY IT BREAKS THAT TRUST IN THE FUTURE VALUE OF MONEY UNDERMINING FAITH IN THE MOST SOLEMN GOVERNMENT COMMITMENTS PEOPLE ARE THEN COMPELLED TO ADAPT TO CHANGING MONETARY VALUES AND UNCERTAINTY BY RAISING LONGTERM INTEREST RATES THE INEFFICIENCY AND MISCOORDINATION CAUSED BY MONETARY UNCERTAINTY REVERSES ALL THE BENEFITS WE HAVE SEEN OVER THE PAST YEAR SUCH AS MORE AFFORDABLE HOUSING 18 MILLION NEW JOBS AND INCREASED CONFIDENCE IN OUR ECONOMIC FUTURE THOSE WHO HAVE WEALTH WILL BE ABLE TO ADJUST AND PROTECT THEIR ASSETS THE FULL IMPACT OF THIS WILL BE BORNE BY THOSE WHO DO NOT OWN HOMES FARMS BUSINESSES OR OTHER ASSETS THAT COULD HOLD VALUE WHILE MONETARY VALUES ARE BEING MANIPULATED THIS WILL HAVE A DISPARATE IMPACT ON MINORITIES AND THE POOR KEEPING THE COMMITMENT TO A STABLE CURRENCY IS A TASK THAT CAN BE DISCHARGED BY FOLLOWING A PRICE RULE SUCH AS LINKING THE DOLLAR TO GOLD WHICH THE US DID UNTIL 1971 THERE IS REASON TO BELIEVE THAT THE FEDERAL RESERVE BOARD HAS BEEN SILENTLY TARGETING PRICE LEVELS FOR SOME TIME NOW PRODUCING THE DECLINE IN INTEREST RATES THAT HAS BEEN THE CURRENT ECONOMIC EXPANSION IF THIS POLICY WERE MADE EXPLICIT EITHER BY THE FED OR BY STATUTE WE ARE CONFIDENT THAT FURTHER RATE REDUCTIONS TO THE 34 AREA COULD BE FORTHCOMING AS PEOPLE REGAIN TRUST IN THE DOLLAR'S LONGTERM VALUE A PHENOMENAL OUTPOURING OF CAPITAL FOR LONGTERM PRIVATE AND PUBLIC INVESTMENT COULD MAKE FEASIBLE ALL KINDS OF PROJECTS INCLUDING THE URBAN INFRASTRUCTURE IMPROVEMENTS WE NEED BUT ONLY DREAM ABOUT TODAY COMMISSIONERS ROBERT P GEORGE AND CARL A ANDERSON ALSO SIGNED THIS LETTER 9401140144 940114 DEATH THREAT KILLER DISEASE BORNE BY RODENTS IS FOUND IN WIDER AREAS OF US HANTAVIRUS FIRST DISCOVERED AMONG NAVAJOS STRIKES A MECHANIC IN MIAMI SURVIVOR I AM A MIRACLE' BY ERIK LARSON AND ERIC MORGENTHALER STAFF REPORTERS OF THE WALL STREET JOURNAL MIAMI WHEN KENNETH SPENCE A 33YEAROLD MECHANIC ENTERED JACKSON MEMORIAL HOSPITAL LAST OCTOBER HE BELIEVED ALL HE HAD WAS A BAD CASE OF THE FLU BY THE TIME RICHARD GREENMAN AN INFECTIOUSDISEASE SPECIALIST WAS CALLED IN TWO DAYS LATER MR SPENCE WAS UNCONSCIOUS AND ON A RESPIRATOR FLUID HAD BEGUN SEEPING INTO HIS LUNGS TO THE POINT WHERE HE WOULD SOON STAND A GOOD CHANCE OF SUFFOCATING HIS DOCTORS AT JACKSON WHICH IS AFFILIATED WITH THE UNIVERSITY OF MIAMI'S MEDICAL SCHOOL WERE BAFFLED HAD THIS BEEN THE SOUTHWEST DR GREENMAN OBSERVED MR SPENCE MIGHT HAVE BEEN DIAGNOSED AS HAVING A CLASSIC CASE OF HANTAVIRUS PULMONARY SYNDROME THAT IS THE DEADLY RODENTBORN DISEASE FIRST IDENTIFIED AFTER AN OUTBREAK AMONG NAVAJO INDIANS LAST MAY IN THE SOCALLED FOUR CORNERS REGION OF THE COUNTRY WHERE ARIZONA UTAH COLORADO AND NEW MEXICO MEET BUT THE MOUSE BLAMED FOR THE DISEASE THE DEER MOUSE OR PEROMYSCUS MANICULATUS WASN'T THOUGHT TO LIVE IN SOUTH FLORIDA SO I SAID WE'RE THEREFORE GOING TO CALL THIS A CASE OF HANTAVIRUS PULMONARY SYNDROME HAHA BECAUSE IT DOESN'T EXIST HERE YET DR GREENMAN RECALLS AND WE'LL SEND OFF ALL THE DIAGNOSTIC STUFF TO SEE IF ANYONE COMES UP WITH ANOTHER ANSWER AFTER NEARLY A MONTH IN INTENSIVE CARE MR SPENCE RECOVERED AND LEFT THE HOSPITAL STILL UNAWARE OF WHAT HAD ALMOST KILLED HIM ON TUESDAY THE CENTERS FOR DISEASE CONTROL IN ATLANTA CONFIRMED THAT MR SPENCE HAD INDEED BEEN INFECTED BY HANTAVIRUS AND IN THE PROCESS RAISED FRESH CONCERNS THAT THE VIRUS AND ITS KILLER SYNDROME MAY OCCUR OVER A FAR WIDER RANGE THAN ONCE THOUGHT MR SPENCE HAD BECOME THE 54TH VICTIM OF THE NEW DISEASE AND ONLY ITS 22ND SURVIVOR THE NEWS OF HIS INFECTION FOLLOWED ON THE HEELS OF OTHER EVIDENCE OF THE VIRUS'S LONG GEOGRAPHIC REACH JUST THE WEEK BEFORE KANSAS HEALTH OFFICIALS BEGAN INVESTIGATING THE JAN 3 DEATH OF AN 18YEAROLD GIRL IN GARDEN CITY KAN WHO THEY SUSPECT MAY BE THE STATE'S SECOND HANTAVIRUS VICTIM THAT SAME WEEK THE CDC CONFIRMED THAT THE DEATH OF A 14YEAROLD BOY IN COEUR D'ALENE IDAHO WAS THE STATE'S THIRD CASE OF THE VIRUS ONE OF THE NATION'S FOREMOST HANTAVIRUS INVESTIGATORS GREGORY GURRI GLASS OF THE JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH SPENT THIS WEEK TRAPPING RODENTS IN KANSAS AND IDAHO AND WAS BOUND NEXT FOR FLORIDA THE DISEASE IS STILL RELATIVELY RARE ESPECIALLY WHEN COMPARED WITH THE THOUSANDS OF CASES OF LYME DISEASE DIAGNOSED EACH YEAR NONETHELESS THE VIRUS HAS NOW TURNED UP IN 15 STATES RANGING FROM FLORIDA TO NORTH DAKOTA TO CALIFORNIA ONE DEATH OF A 22YEAROLD MAN TOOK PLACE IN SAN FRANCISCO ACCORDING TO THE CDC RESEARCHERS NOW SUSPECT THE VIRUS MAY BE PRESENT IN DEER MICE AND OTHER RODENT SPECIES THROUGHOUT THE US PROMPTING WIDESPREAD CALLS FOR RESTORATION OF FEDERAL RODENTCONTROL PROGRAMS AND WARNINGS FROM STATE HEALTH DEPARTMENTS ABOUT THE NEW HAZARDS OF MICE IN THE HOME INCLUDING ADVICE TO WEAR GLOVES WHENEVER REMOVING A MOUSE FROM A TRAP AND TO USE HOUSEHOLD DISINFECTANTS ON AREAS WHERE MICE ARE THOUGHT TO TREAD WE'RE JUST TELLING EVERYONE TO TREAT EVERY MOUSE AS IF IT'S INFECTED SAYS LORI RICHARDSON ADMINISTRATOR OF THE HEALTH DEPARTMENT IN MORTON COUNTY KAN HOME OF THE STATE'S ONLY CONFIRMED HANTAVIRUS VICTIM THE VICTIM A 34YEAROLD PREGNANT WOMAN DIED LAST FALL THE RECENT CASES AND OTHERS LAST YEAR DEMONSTRATE BEYOND DOUBT THAT THE VIRUS IS ANYTHING BUT A NAVAJO DISEASE AS EARLY PRESS REPORTS SUGGESTED ITS VICTIMS RANGE IN AGE FROM 12 TO 69 AND INCLUDE A 27YEAROLD WILDLIFE RESEARCHER WHO DIED LAST YEAR IN CALIFORNIA AND A 58YEAROLD LOUISIANA BRIDGE WORKER WHO ALSO DIED THE HANTAVIRUS IN QUESTION IS ACTUALLY ONE OF A FAMILY OF SIMILAR VIRUSES KNOWN TO CAUSE HEMORRHAGIC FEVER IN EUROPE AND ASIA AND TO HAVE SICKENED THOUSANDS OF SOLDIERS DURING THE KOREAN WAR OTHER MORE BENIGN STRAINS OF HANTAVIRUS HAVE LONG BEEN KNOWN TO RESIDE IN US RATS AND MICE BUT UNTIL THE FOUR CORNERS OUTBREAK LAST SUMMER RESEARCHERS HAD FOUND ONLY LIMITED EVIDENCE THAT THE VIRUSES CAUSED DISEASE RESEARCH IN BALTIMORE PUBLISHED JUST TWO MONTHS BEFORE THE OUTBREAK FOUND EVIDENCE ONLY THAT ONE STRAIN SEEMED TO BE IMPLICATED IN CAUSING A FORM OF HYPERTENSION IN RESIDENTS WHO HAD BEEN EXPOSED TO RATS THE NEWLY RECOGNIZED VIRUS WHEN AT ITS WORST IS A GROTESQUE KILLER THE SYNDROME IT TRIGGERS BEGINS INNOCENTLY ENOUGH WITH SYMPTOMS OF A SEVERE COLD OR FLU SOME PATIENTS EVEN BEGIN TO FEEL BETTER WITH STUNNING SPEED HOWEVER THE LUNGS FILL WITH FLUIDS THAT LEAK FROM CAPILLARIES LINING THE LUNGS THREE OF FIVE PATIENTS DIE THEY LITERALLY DROWN SAYS RIMA KHABBAZ MEDICAL EPIDEMIOLOGIST ON THE CDC'S HANTAVIRUS TASK FORCE NO CURE EXISTS ALL DOCTORS CAN DO SHE SAYS IS PROVIDE SUPPORTIVE CARE AS OMINOUS AS THE NEWS OF NEW CASES MAY BE RESEARCHERS SAY THE BIG MYSTERY OF THE DISEASE IS WHY MORE PEOPLE DON'T GET INFECTED DEER MICE ARE COMMON ANYONE WHO LIVES IN THE COUNTRY HAS HAD THEM IN THEIR HOUSE WHETHER THEY'D ADMIT IT OR NOT OR IF THEY EVEN KNEW IT OR NOT SAYS HOPKINS'S MR GLASS BUT HE AND OTHER HANTAVIRUS RESEARCHERS NOW THINK IT IS FAIRLY DIFFICULT TO CONTRACT THE VIRUS PEOPLE GET IT THROUGH SOME FORM OF DIRECT CONTACT WITH THE MICE OR THEIR WASTES AS BY BREATHING RESIDUES OF FECES AND URINE BUT THE VIRUS DOESN'T READILY SKIP TO HUMANS AND WHILE IT IS READILY TRANSFERRED FROM RODENT TO RODENT IT APPARENTLY CAN'T BE PASSED FROM PERSON TO PERSON THE VIRUS DOESN'T DO WELL ENOUGH IN HUMANS SAYS MR GLASS INDEED ONE THEORY HOLDS THAT THE LETHAL DAMAGE IS NOT DONE BY THE RAPID GROWTH OF THE VIRUS IN THE BODY BUT BY THE BODY'S IMMUNE RESPONSE TO A RELATIVELY LIMITED INFECTION THOSE WHO DIE MAY HAVE EXPERIENCED AN ESPECIALLY POWERFUL IMMUNE RESPONSE AND THIS ADDS UP TO GOOD NEWS SAYS MR GLASS YOU DON'T HAVE THE POTENTIAL FOR AN INCREDIBLY EXPLOSIVE OUTBREAK THE REALLY SCARY PLAGUETYPE THING WE OFTEN THINK OF NONETHELESS THE POTENTIAL FOR PANIC IS HIGH ESPECIALLY IN COMMUNITIES WHERE A SUSPECTED INFECTION HAS OCCURRED IN GARDEN CITY KAN FOR EXAMPLE IT'S FLU SEASON HOW DO YOU SORT OUT WHETHER YOU'VE GOT THE FLU FROM WHETHER YOU'RE GOING TO BE DEAD SAYS MR GLASS THERE'S A TREMENDOUS COST IN TERMS OF THE UNEASE AND PANIC AND UNCERTAINTY IT PRODUCES IN A COMMUNITY WHEN YOUR NEXT DOOR NEIGHBOR DROPS DEAD FROM SOMETHING THAT YOU CAN'T SEE AND CAN'T DO MUCH ABOUT PEOPLE FIND THAT VERY SCARY AND THREATENING WHEN THE VIRUS STRUCK THE NAVAJO RESERVATION LAST YEAR SOME NONINDIANS IN THE AREA CAME TO TREAT NAVAJOS AS DISEASE VECTORS GEORGE BRENNEMAN ASSOCIATE DIRECTOR OF THE HOPKINS CENTER FOR AMERICAN INDIAN AND ALASKAN NATIVE HEALTH HEARD REPORTS OF NAVAJO CHILDREN AT SCHOOL BEING EXCLUDED FROM SOME ACTIVITIES PSYCHOLOGICALLY IT HAD A VERY POWERFUL IMPACT BECAUSE THE DISEASE LOOKED LIKE A VERY BAD THING COMING FROM THE NAVAJO INDIANS HE SAYS IT TURNED INTO KIND OF A LEPROSY THING THE SENSITIVITY LINGERS THE CDC WANTED TO NAME THE NEW HANTA STRAIN FOUR CORNERS VIRUS IN KEEPING WITH THE PRACTICE OF NAMING OTHER STRAINS FOR THE PLACES WHERE THEY WERE IDENTIFIED SUCH AS SEOUL VIRUS AND HANTAAN VIRUS NAMED FOR A RIVER IN SOUTH KOREA FROM WHICH THE ENTIRE FAMILY TAKES ITS NAME NAVAJO TRIBAL OFFICIALS OBJECTED BALKING AT ANY NAME THAT MIGHT FOREVER LINK THE DISEASE TO THE NAVAJO NATION THE CDC RECENTLY SUBMITTED A NEW NAME MUERTO CANYON OR DEATH CANYON AFTER A SITE IN THE FOUR CORNERS AREA A FINAL NAME WON'T BE CHOSEN UNTIL THE 1996 MEETING IN ISRAEL OF THE INTERNATIONAL COMMITTEE ON TAXONOMY OF VIRUSES WHICH DECIDES SUCH THINGS ALTHOUGH THE FOUR CORNERS OUTBREAK LED TO DISCOVERY OF THE NEW STRAIN RESEARCHERS NOW BELIEVE THE VIRUS HAS EXISTED A VERY LONG TIME HANTAVIRUS PULMONARY SYNDROME SIMPLY WAS NEVER RECOGNIZED PAST DEATHS MAY HAVE BEEN LEFT UNDIAGNOSED OR ATTRIBUTED TO ADULT RESPIRATORY DISTRESS SYNDROME ARDS A KIND OF CATCHALL CATEGORY FOR ILLNESS INVOLVING SEVERE EDEMA OF THE LUNGS INDEED FOLLOWING THE FOUR CORNERS OUTBREAK EPIDEMIOLOGISTS AND VIROLOGISTS BEGAN LOOKING FOR THE VIRUS IN LONGPAST CASES TYPICALLY BY ANALYZING PRESERVED BLOOD AND TISSUE SAMPLES ANALYSIS OF TISSUE FOR EXAMPLE IDENTIFIED THE SAN FRANCISCO CASE THE YOUNG MAN HAD DIED OF THE DISEASE IN 1980 THE REASON SO MANY CASES HAVE BEGUN APPEARING NOW 12 NEW ONES SINCE THE CDC'S LAST COMPREHENSIVE REPORT IN OCTOBER IS BECAUSE NOW RESEARCHERS KNOW WHAT TO LOOK FOR THE FIRST KANSAS CASE FOR EXAMPLE WAS DIAGNOSED AFTER THE WOMAN'S DEATH WHEN A COUNTY PATHOLOGIST INTRIGUED BY THE CASE SENT TISSUE SAMPLES TO THE CDC AT FIRST INVESTIGATORS BELIEVED SHE HAD CONTRACTED THE VIRUS DURING AN INTENSIVE TWOWEEK PERIOD OF HOUSECLEANING AFTER SHE AND HER FAMILY MOVED INTO A FARM HOUSE THAT HAD BEEN EMPTY FOR ABOUT TWO YEARS BUT THE MOVE TOOK PLACE IN MAY SHE DIDN'T GET SICK UNTIL SEPTEMBER HER HUSBAND HOWEVER LATER TOLD INVESTIGATORS THAT HIS WIFE A FASTIDIOUS HOUSEKEEPER ROUTINELY SET OUT TRAPS TO CATCH MICE AND DISPOSED OF ONE OR TWO A WEEK THE DISEASE WAS SELECTIVE USING TESTS FOR HANTAVIRUS ANTIBODIES INVESTIGATORS FOUND THAT HER HUSBAND AND TWO CHILDREN HAD NEVER EVEN BEEN EXPOSED TO THE VIRUS IT TELLS US THERE'S NO PERSONTOPERSON TRANSMISSION AND THAT IT'S NOT QUITE THE SCARE IT SHOULD HAVE BEEN SAYS LORI RICHARDSON THE COUNTY HEALTH ADMINISTRATOR SCARY ENOUGH HOWEVER FOR SURROUNDING RESIDENTS I'M REALLY QUITE AFRAID SAYS TOMMIE HENNEBERRY COOK AND WAITRESS AT SPANGLES RESTAURANT IN THE EL RANCHO MOTEL IN ELKHART I DON'T PARTICULARLY WANT TO DIE EXPERTS AT THE CDC AND ELSEWHERE SAY THE DISEASE IS DIRECTLY RELATED TO THE DEGREE OF CONTACT BETWEEN HUMANS AND RODENTS AND THAT THE MOST DANGEROUS TIME IS DURING SEASONAL SHIFTS OR OTHER ECOLOGICAL UPHEAVALS THAT INCREASE SUCH CONTACT THEY BELIEVE THE FOUR CORNERS OUTBREAK OCCURRED WHEN IT DID BECAUSE THE POPULATION OF DEER MICE HAD EXPLODED AFTER A SINGULARLY HOSPITABLE WINTER WHEN SUMMER ARRIVED AND THE LAND BEGAN TO DRY OUT AND FOOD SUPPLIES TO WITHER THE MICE BEGAN LOOKING FOR NEW SOURCES OF FOOD AND SHELTER SO THEY ENDED UP IN PEOPLE'S HOUSES SAYS HOPKINS'S MR GLASS IN TEMPERATE NORTHERN REGIONS HE SAYS THE SAME KIND OF THING OCCURS IN WINTER BASICALLY HE SAYS THESE MICE ARE LOOKING FOR SOME PLACE TO STAY WARM AND MAKE IT THROUGH THE WINTER ALIVE INDEED SOME FLORIDA OFFICIALS SUSPECT KENNETH SPENCE CONTRACTED HANTAVIRUS BECAUSE OF CHANGES IN THE AREA'S RODENT POPULATION IN THE WAKE OF HURRICANE ANDREW WHICH RAVAGED MUCH OF SOUTH FLORIDA IN AUGUST 1992 THE DEER MOUSE MAY NOT LIVE HERE BUT RODENT EXPERTS SAY ITS CLOSE RELATIVES DO ANITA BOCK THE TOP LOCAL OFFICIAL OF THE STATE'S HEALTH AND REHABILITATIVE SERVICES DEPARTMENT CITES A VERY SIGNIFICANT RODENT PROBLEM IN THE SOUTH PART OF THE COUNTY THE AREA HARDEST HIT BY THE HURRICANE EVEN BEFORE ANDREW SHE SAYS RODENT CONTROL WAS BEING HAMPERED BY FUNDING CUTBACKS SHE STRESSES HOWEVER THAT HANTAVIRUS PULMONARY SYNDROME IS AN EXTREMELY RARE DISEASE AND ADDS WE DON'T HAVE ANY CONCERNS OF AN OUTBREAK IN DADE COUNTY AND OTHERS CAUTION AGAINST MAKING TOO MUCH OF THE ANDREW CONNECTION WE HAVE VERY LITTLE OBJECTIVE EVIDENCE TO SUPPORT THAT SAYS GARY HLADY THE STATE'S DIRECTOR OF COMMUNICABLEDISEASE EPIDEMIOLOGY MR SPENCE'S PROBLEMS BEGAN LAST OCT 20 WHEN HE DEVELOPED A FEVER CHILLS AND BODY ACHES I THOUGHT I WAS COMING DOWN WITH THE FLU HE SAYS SO I TOOK A COUPLE OF TYLENOL AND WENT TO BED AT THE TIME HE WAS LIVING IN A COUNTYRUN DRUGTREATMENT FACILITY IN SOUTH DADE AS HIS CONDITION WORSENED HE SOUGHT OUT THE FACILITY'S DOCTOR ON OCT 22 A FRIDAY SHE SENT HIM TO THE EMERGENCY ROOM AT JACKSON MEMORIAL DOCTORS QUICKLY TRANSFERRED HIM TO THE INTENSIVECARE UNIT ON SATURDAY SAYS MR SPENCE ALL HELL BROKE LOOSE HE BEGAN HAVING SEVERE PROBLEMS BREATHING ALONG WITH EXCRUCIATING ABDOMINAL PAIN THE DOCTORS PLACED HIM ON A RESPIRATOR HE DOESN'T REMEMBER THAT HOWEVER HE HAD ALREADY LOST CONSCIOUSNESS TWO WEEKS LATER HE SAYS I CAME TO HE RECOVERED GRADUALLY AND LEFT THE HOSPITAL NOV 13 HE IS HE SAYS SIMPLY GLAD TO BE ALIVE THE DOCTORS AND NURSES TELL ME I SHOULD THANK GOD EVERY DAY HE SAYS BECAUSE I AM A MIRACLE RESEARCHERS SAY THEY NOW UNDERSTAND THE DYNAMICS OF THE NEW HANTAVIRUS ENOUGH TO PROJECT ITS BEHAVIOR YOU'RE GOING TO SEE CASES HERE AND THERE SORT OF LIKE WHAT'S HAPPENING NOW SAYS MR GLASS BUT SUPERIMPOSED ON THAT HE SAYS WILL BE AN OCCASIONAL LARGER OUTBREAK LIKE THE ONE IN FOUR CORNERS CAUSED BY SUDDEN ENVIRONMENTAL PRESSURE ON BOOMING RODENT POPULATIONS RESEARCHERS CAUTION HOWEVER THAT IT WOULD BE A MISTAKE TO UNDERESTIMATE THIS OR ANY OTHER EMERGING VIRUS THE ADVENT OF HIV THE VIRUS THAT CAUSES AIDS TAUGHT THAT LESSON THE HARD WAY SAYS STEPHEN MORSE A VIROLOGIST AT ROCKEFELLER UNIVERSITY IN NEW YORK CITY AND AN EXPERT ON EMERGING VIRUSES UNTIL THEN HE AND OTHER RESEARCHERS AGREE MEDICINE HAD BEGUN TO VIEW INFECTIOUS DISEASE AS A THING OF THE PAST WE HAD GOTTEN COMPLACENT HE SAYS THE NEW HANTAVIRUS AND THE EXPANSION OF OTHER NEW OR ASCENDANT INFECTIONS SUCH AS AIDS AND LYME DISEASE CONSTITUTE A WARNING HE SAYS IT REMINDS US THAT WE WILL CONTINUE TO SEE OUTBREAKS OF INFECTIOUS DISEASES CAUSED IN SOME CASES BY FAMILIAR THINGS LIKE INFLUENZA AND IN SOME CASES BY UNFAMILIAR THINGS LIKE THE HANTAVIRUSES THE MESSAGE IS THESE VIRUSES AND INFECTIONS DO HAVE A FUTURE THERE ARE LOTS OF THEM OUT THERE IT'S IMPORTANT FOR US TO KEEP ON TOP OF THEM IF WE WANT TO HAVE A FUTURE 9401140143 940114 BUSINESS BRIEFS COMPUTER OUTSOURCING SERVICES INC A PROVIDER OF DATAPROCESSING AND PAYROLLOUTSOURCING SERVICES COMPLETED THE ACQUISITION OF TRUCHECK COMPUTER SYSTEMS INC AN INFORMATIONPROCESSING COMPANY AMERICAN MEDICAL HOLDINGS INC'S OPERATING COMPANY AMERICAN MEDICAL INTERNATIONAL INC SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF ST FRANCIS HOSPITAL MEMPHIS TENN TERMS WEREN'T DISCLOSED REHABILITY CORP ACQUIRED THREE REHABILITATION CENTERS NEAR ORLANDO FLA TERMS WEREN'T DISCLOSED CORRPRO COS MEDINA OHIO COMPLETED THE ACQUISITION OF THE OPERATING ASSETS OF GOODALL ELECTRIC INC FORT COLLINS COLO FROM VALMONT INDUSTRIES INC VALLEY NEB TERMS WEREN'T DISCLOSED PARKOHIO INDUSTRIES INC COMPLETED THE SWAP OF ITS PEOTONE ILL STEEL CONTAINER PLANT IN RETURN FOR CLEVELAND STEEL CONTAINER'S PLASTIC CONTAINER FACILITY IN CLEVELAND PARKOHIO ADDED 3 MILLION CASH TO THE EXCHANGE 9401140142 940114 LAW COOPER COS AND A FORMER COCHAIRMAN CONVICTED IN JUNKBOND TRADING SCAM BY WADE LAMBERT AND MARGARET A JACOBS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK COOPER COS AND FORMER COCHAIRMAN GARY SINGER WERE CONVICTED OF PARTICIPATING IN AN ILLEGAL JUNKBOND TRADING SCHEME THAT GENERATED 35 MILLION IN PROFITS MR SINGER COCHAIRMAN OF THE HEALTHPRODUCTS COMPANY FROM 1988 UNTIL 1992 WAS CONVICTED OF 21 COUNTS INCLUDING RACKETEERING CHARGES CONSPIRACY AND FRAUD THE COMPANY WAS CONVICTED OF SEVEN COUNTS OF FRAUD BUT WAS ACQUITTED OF CONSPIRACY UNLIKE MR SINGER THE COMPANY WASN'T CHARGED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW IN US DISTRICT COURT HERE PROSECUTORS ALLEGED THAT MR SINGER PAID 700000 IN CORPORATE FUNDS TO TWO FORMER JUNKBOND ANALYSTS IN RETURN FOR INFORMATION ABOUT PLANNED JUNKBOND PURCHASES THAT INFORMATION ENABLED THE COOPER EXECUTIVE TO BUY THE BONDS BOTH FOR THE COMPANY'S AND HIS FAMILY'S ACCOUNTS AHEAD OF THE TRANSACTIONS PROSECUTORS ALLEGED MR SINGER THEN RESOLD THE BONDS MAKING 35 MILLION IN ILLEGAL PROFITS PROSECUTORS CHARGED SENTENCING WAS SET FOR MARCH 25 FOR BOTH MR SINGER AND THE FORT LEE NJBASED COMPANY BECAUSE HE WAS CONVICTED UNDER RICO MR SINGER COULD FACE FORFEITURE PROCEEDINGS TO RECOVER THE ILLEGAL PROFITS HE ALLEGEDLY MADE MR SINGER ALSO FACES THE POSSIBILITY OF A STIFF PRISON SENTENCE AND BOTH DEFENDANTS FACE POSSIBLE FINES OF SEVERAL HUNDRED THOUSAND DOLLARS CHARLES STILLMAN AN ATTORNEY FOR MR SINGER SAID THE VERDICT WILL BE APPEALED THEODORE V WELLS JR AN ATTORNEY FOR COOPER SAID THE COMPANY IS CONSIDERING WHETHER TO APPEAL BOTH MESSRS STILLMAN AND WELLS SAID THE JURY'S DECISION APPEARED TO BE INCONSISTENT ON SOME POINTS FOR INSTANCE THE SAME ACTS WERE INVOLVED IN SEVERAL OF THE CHARGES BUT THE JURY DIDN'T CONVICT ON ALL THOSE COUNTS THE POTENTIAL INCONSISTENCY IS SOMETHING WE NEED TO EXPLORE TO SEE WHAT IMPACT IF ANY IT WILL HAVE ON THE FUTURE OF THIS CASE MR STILLMAN SAID COOPER'S SUPPORTIVE STANCE TOWARD MR SINGER HAS DRAWN THE IRE OF THE SECURITIES AND EXCHANGE COMMISSION WHICH MAINTAINS THE COMPANY AT THE EXPENSE OF PROTECTING SHAREHOLDERS BACKED MR SINGER AFTER THE ALLEGATIONS AGAINST HIM WERE DISCLOSED THE SEC HAS A SEPARATE CIVIL LAWSUIT PENDING AGAINST COOPER MR SINGER AND MR SINGER'S BROTHER STEVEN ALSO AN EXECUTIVE AT THE COMPANY THE SINGER FAMILY CONTROLS ABOUT 10 OF THE COMPANY'S STOCK SAID WILLIAM MCLUCAS THE SEC'S DIRECTOR OF ENFORCEMENT THE SEC'S SUIT MAKES SOME OF THE SAME ALLEGATIONS THAT WERE IN THE CRIMINAL CASE AND ADDS SOME OTHER ALLEGED VIOLATIONS THE SEC SUIT ASKS THAT THE DEFENDANTS BE ORDERED TO TURN OVER MORE THAN 3 MILLION IN ALLEGED ILLEGAL PROFITS AND PAY ADDITIONAL CIVIL PENALTIES COOPER WHICH HAS REPORTED LOSSES OVER SEVERAL QUARTERS AS A RESULT OF BREASTIMPLANT LITIGATION AND HAS RECENTLY ANNOUNCED A DEBT RESTRUCTURING MAKES CONTACT LENSES SURGICAL EQUIPMENT AND RUNS PSYCHIATRIC HOSPITALS IT WAS TAKEN OVER BY THE SINGERS WHO HAD PREVIOUSLY RUN A WESTCHESTER NY CONSTRUCTION BUSINESS AND ANOTHER FAMILY IN 1988 BUT WITHIN A YEAR OF THE TAKEOVER MOST OF THE COMPANY'S DIVISIONS INCLUDING ITS BREASTIMPLANT DIVISION WERE SOLD IN A SERIES OF CONTROVERSIAL DEALS AND ITS STOCK PRICE TUMBLED ABOUT 70 THE ALLEGED WRONGDOING OCCURRED IN 1991 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COOPER CLOSED AT 625 CENTS DOWN 125 CENTS 9401140141 940114 POLITICS & POLICY NEW HIGHTECH COSTLY SENATE SUBWAY PROVOKES AMUSEMENT EMBARRASSMENT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TIME IS MONEY EVEN IN THE SENATE AND THE CHAMPIONS OF THE FILIBUSTER ARE DEVOTING MILLIONS TO SAVE MINUTES OF COOLING THEIR HEELS ALONG THE CAPITOL SUBWAY FOR 18 MILLION IN TAXPAYER MONEY THEY'RE BUILDING A HIGHTECH DISNEYERA PEOPLE MOVER FOR VERY IMPORTANT PEOPLE THAT FIGURE TRANSLATES INTO ABOUT 15 MILLION FOR EVERY 100 YARDS THE THOUSANDS OF TOURISTS WHO VENTURE DOWN INTO THE CAPITOL BASEMENT CAN HITCH A RIDE AS WELL BUT THE DRIVING FORCE BEHIND THE PROJECT IS THE NEED TO SPEED SENATORS TO THE CAPITOL FROM THEIR NEWEST OFFICE BUILDING ABOUT A QUARTERMILE AWAY AS THE NEW RAIL LINE AND CARS HAVE BEGUN TO GO INTO PLACE THIS WINTER THE VERY GRANDEUR OF THE SCHEME IS BEGINNING TO PROVOKE AMUSEMENT AND SOME EMBARRASSMENT IT DOESN'T HELP THAT THE COSTPERROUTE MILE EXCEEDS SOME CONVENTIONAL LIGHTRAIL SYSTEMS BUILT BY THE GOVERNMENT NOR THAT THE CLINTON ADMINISTRATION CHOSE THIS YEAR TO CUT FEDERAL OPERATING SUBSIDIES FOR URBANTRANSIT SYSTEMS AND THEN THERE IS THE PRESIDENT'S COUNCIL ON PHYSICAL FITNESS AND SPORTS WHICH HAS PAID FOR BROCHURES THAT CELEBRATE WALKING AS AN EXERCISE FOR ALL AGES AND THE SLOWER SURER WAY TO FITNESS THE PAMPHLET ALSO NOTES THAT WALKING DOESN'T COST ANYTHING THE CURRENT SENATE SUBWAY SYSTEM ABOUT 35 YEARS OLD FACES REPAIR COSTS OF ITS OWN AND SORELY NEEDS REPLACEMENT ACCORDING TO THE CAPITOL ARCHITECT'S OFFICE WHOSE SURVEYS SUGGEST THAT MORE THAN A HALFMILLION PEOPLE RIDE THE TRAINS EACH YEAR WITH NEW REQUIREMENTS TO MAKE THE CAPITOL MORE ACCESSIBLE TO THE HANDICAPPED IMPROVEMENTS WERE INEVITABLE SEN HARRY REID D NEV WHO HAS HAD TO CARRY THE PROJECT AS CHAIRMAN OF THE LEGISLATIVE APPROPRIATIONS SUBCOMMITTEE SAYS IT'S NOT THE SENATE'S SUBWAY IT'S THE PUBLIC'S SUBWAY NONETHELESS THE EXPENDITURE IS DRIVEN BY THE FACT THAT HALF THE SENATORS TODAY OPERATE FROM THE HART OFFICE BUILDING IN 1984 WITHIN YEARS OF THE BUILDING'S OPENING AND LONG BEFORE THE RECENT DISABILITY LEGISLATION A CONSULTINGFIRM CONTRACT WENT OUT TO EVALUATE THE SUBWAY AND THE SCHEDULED COMPLETION THIS SUMMER CAPS A DECADE OF PRODDING BY HART SENATORS WITH INFLUENCE ON THE RULES AND APPROPRIATIONS COMMITTEES HART SENATORS OFTEN COMPLAIN OF DELAYS IN GETTING TO THE FLOOR ON BUSY DAYS OF VOTING THE CURRENT SHUTTLE BACKANDFORTH TO THE CAPITOL TAKES ABOUT FIVE MINUTES OR MORE WHILE THIS DELAY IS NOTHING TO YOUR AVERAGE SUBWAY RIDER IT CAN SEEM AN ETERNITY FOR A SENATOR WHO HAS JUST MISSED A RIDE THE DIRKSEN BUILDING WHICH HOUSES ANOTHER 36 OFFICE SUITES AND CURRENTLY IS SERVED BY ITS OWN RAIL LINE WILL BECOME PART OF THE NEW LOOP THE NEW ELECTRIC COMPUTERCONTROLLED SYSTEM WILL FEATURE FOUR TRAINS WITH THREE CARS EACH FOLLOWING ONE ANOTHER AT ONEMINUTE INTERVALS WITH EACH TRAIN ABLE TO SEAT 25 PASSENGERS TWO ALONE WOULD BE ENOUGH TO TRANSPORT ALL THE HART SENATORS IN A FEW MINUTES IN ANOTHER TWO MINUTES AIDES COULD FOLLOW IN TIME TO ADVISE THEIR MEMBERS ON HOW TO VOTE ALLOWING 17 MINUTES FOR TRAVEL TIME AT TODAY'S SPEED OF 17 MILES AN HOUR EVERYONE COULD BE BACK TO HART BEFORE THE 15MINUTE ROLL CALL ENDS WHAT WILL HAPPEN WHEN THE SENATE ISN'T VOTING AND THE TRAINS KEEP GOING AROUND IS LESS CLEAR BUT THE ARCHITECT'S OFFICE SAYS CARS CAN BE PULLED OUT OF SERVICE WHEN NOT NEEDED OR WHEN SENATORS CHOOSE TO WALK THE DISTANCES AREN'T LONG FROM HART TO THE CAPITOL IS ABOUT 1657 FEET THE DISTANCE FROM DIRKSEN TO THE CAPITOL IS JUST 1108 FEET THE BULK OF THE PROJECT IS COVERED BY A 158 MILLION CONTRACT WITH TRANSPORTATION GROUP INC A FLORIDA SUBSIDIARY OF BOMBARDIER INC THE CANADIAN COMPANY THAT BUILDS WATER JETSKIS AND SNOWMOBILES AS WELL AS CORPORATE JETS AND TRANSIT CARS THE MONORAIL TECHNOLOGY DUBBED WEDWAY FOR WALT E DISNEY OWES ITS NAME AND ROOTS TO EXPERIENCES AT DISNEY WORLD TRANSPORTATION GROUP WHICH DID WORK FOR DISNEY ALSO LIKENS THE SYSTEM TO ONE IT BUILT FOR THE HOUSTON INTERCONTINENTAL AIRPORT THE NARROW CAPITOL TUNNEL AND THE NEED TO MAINTAIN SERVICE WHILE INSTALLING THE NEW SYSTEM HAVE LIMITED COMPETITION AND ADDED TO COSTS BUT WHEN MEASURED AGAINST TODAY'S HIGHCAPACITY AIRPORT SYSTEMS THE COMPANY INSISTS THE SENATE SCHEME IS EXTREMELY COSTEFFECTIVE 9401140140 940114 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES MICHAEL LIEBHOLD 49 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT TECHNOLOGY WITH THIS MEDIA AND INFORMATION CONCERN HE PREVIOUSLY WAS SENIOR SCIENTIST MEDIA ARCHITECTURES RESEARCH ADVANCED TECHNOLOGY GROUP AT APPLE COMPUTER INC 9401140138 940114 PEUGEOT CITROEN EXPECTS INCREASE IN MARKET SHARE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS JACQUES CALVET CHAIRMAN OF PSA PEUGEOT CITROEN SA SAYS HE IS CONFIDENT THE FRENCH AUTO GROUP WILL BE ABLE TO INCREASE ITS MARKET SHARE TO 13 IN 1994 FROM JUST 122 LAST YEAR MR CALVET SAID THOSE PREDICTIONS WERE BASED ON HIS BELIEF THAT THE FRENCH AND UK MARKETS WHERE PEUGEOT CITROEN IS WELL REPRESENTED WILL PERFORM BETTER THAN THE EUROPEAN AVERAGE IN ADDITION NEW MODELS WILL HELP THE GROUP ATTRACT CONSUMER INTEREST HE SAID ACCORDING TO MR CALVET THE WESTERN EUROPEAN CAR MARKET WILL INCREASE 3 IN 1994 AFTER LAST YEAR'S DISASTROUS 15 CRASH ALTHOUGH MANY OF EUROPE'S MAIN MARKETS WILL REMAIN STAGNANT AND GERMANY EUROPE'S LARGEST MARKET WILL FALL BETWEEN 2 TO 3 FRANCE WILL RISE 7 AND THE UK BY 5 MR CALVET PREDICTED HIS ESTIMATES DIFFER SIGNIFICANTLY FROM THOSE OF THE EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION WHICH HAS FORECAST ONLY A 1 TO 2 INCREASE IN THE OVERALL EUROPEAN MARKET AND WHICH PREDICTS THAT THE UK WILL BE THE ONLY MARKET TO SHOW GROWTH THIS YEAR PEUGEOT CITROEN HOWEVER IS VIRTUALLY THE ONLY MAJOR CAR MAKER THAT ISN'T A MEMBER OF THE EUROPEAN ASSOCIATION MR CALVET SAID THAT BEYOND THE GOOD FORTUNE OF HAVING ITS SALES HEAVILY WEIGHTED IN THE MARKETS WITH BRIGHTER OUTLOOKS NEW MODELS INTRODUCED BY THE GROUP WOULD PLAY A KEY ROLE IN THE ADVANCE THE RECENTLY RELEASED XANTIA WILL CONTINUE TO BE SUCCESSFUL HE PREDICTED MEANWHILE CITROEN THIS YEAR WILL BRING OUT A FIVEDOOR HATCHBACK VERSION OF ITS ZX MODEL IN ADDITION THE GROUP WILL BRING ITS MONOSPACE VAN ONTO THE MARKET BEFORE EITHER VW OR FORD CAN GET COMPETING MODELS ON SHOWROOM FLOORS MR CALVET SAID ALTHOUGH PREDICTING A POSITIVE YEAR FOR PEUGEOT CITROEN NEXT YEAR MR CALVET WARNED THAT THE EUROPEAN MARKET AS A WHOLE IS SHOWING ONLY THE SLIGHTEST UPWARD TILT AND THAT IT WILL BE THE END OF 1994 BEFORE THE INDUSTRY STARTS SEEING A MORE FUNDAMENTAL IMPROVEMENT SEPARATELY MR CALVET ON WEDNESDAY URGED EUROPEAN POLITICIANS TO PUT INCREASED PRESSURE ON JAPANESE CAR MAKERS TO LIMIT THEIR IMPORTS INTO THE EUROPEAN MARKET BEYOND JUST CALLING FOR A FREEZE ON JAPANESE IMPORTS MR CALVET SAID THAT THE JAPANESE OUGHT TO ACTUALLY REDUCE THEIR IMPORTS IN 1994 BECAUSE IN 1993 THEY UNFAIRLY INCREASED THEIR MARKET SHARE OF THE EURPEAN MARKET DESPITE THE 15 COLLAPSE IN THE MARKET 9401140137 940114 CHRYSLER MAY INCREASE PRODUCTION CAPACITY FOR ITS PICKUP TRUCKS DETROIT CHRYSLER CORP SAID IT IS CONSIDERING INCREASING PRODUCTION CAPACITY OF ITS PICKUP TRUCKS BECAUSE OF GROWING DEMAND FOR SEVERAL REDESIGNED MODELS UNTIL NOW CHRYSLER HAS BEEN RELYING HEAVILY ON OVERTIME TO MEET DEMAND FOR SUCH HOTSELLING MODELS AS THE DODGE RAM AND DAKOTA PICKUPS AND CHEROKEE SPORT UTILITY VEHICLES THE AUTO MAKER SAID IT IS STILL STUDYING OPTIONS IN THE MEANTIME CHRYSLER SAID IT SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT ITS ASSEMBLY PLANT IN DETROIT THAT MAKES THE GRAND CHEROKEE SPORT UTILITY VEHICLE SEPARATELY CHRYSLER SAID IT HAS RECEIVED 57000 ORDERS SO FAR FOR ITS NEW NEON SUBCOMPACT AUTOMOBILE IT WILL TAKE UNTIL EARLY MARCH TO FILL THE BACKLOG OF ORDERS CHRYSLER SAID CHRYSLER GENERAL MOTORS CORP AND FORD MOTOR CO ALL PLANNED OVERTIME THIS WEEK AND NEXT WEEK AT SEVERAL US AND CANADIAN ASSEMBLY PLANTS AUTO PLANTS WILL BE CLOSED MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY THE DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD 225507 CARS AND TRUCKS THIS WEEK UP 32 FROM THE 170733 VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER 9401140136 940114 MANDARIN ORIENTAL HOTEL GROUP POISED TO INVEST IN CHINA BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG DEFLECTING CRITICISM THAT THE MANDARIN ORIENTAL HOTEL GROUP IS LOSING TIME BY TAKING A CONSERVATIVE APPROACH TO CHINA MANAGING DIRECTOR ROBERT RILEY SAID THE LUXURY CHAIN IS KEEN TO ENTER THE MAINLAND IF CONDITIONS ARE RIGHT WE HAVE MADE IT PLAIN WE ARE INTERESTED IN DOING HOTELS IN CHINA WHEN WE FIND OPPORTUNITIES FIT FOR SHAREHOLDERS AND CUSTOMERS HE SAID IN AN INTERVIEW MANDARIN ORIENTAL'S NETWORK INCLUDES A MIX OF 10 HOTELS IT OWNS OR OPERATES IN HONG KONG AND SOUTHEAST ASIA AND A HOTEL IT MANAGES IN SAN FRANCISCO ANALYSTS HAVE BLAMED THE COMPANY'S LACKLUSTER EARNINGS PERFORMANCE ON THE CAUTIOUS STYLE OF HONG KONG'S JARDINE STRATEGIC HOLDINGS LTD WHICH OWNS 50 OF THE HOTEL COMPANY MR RILEY TERMED THE MANDARIN ORIENTAL GROUP'S STYLE A VERY DELIBERATE GROWTH STRATEGY HE SAID IT IS A STRATEGY MEANT TO ENSURE THAT EVERY NEW PROJECT'S FINANCIAL STRUCTURE WILL BRING LONGTERM VALUE WHETHER IT BE IN CHINA OR INDONESIA HE ADDED OUR RECORD STANDS FOR ITSELF WE ARE RUNNING BUSINESS IN A WAY THAT BRINGS VALUE TO ITS SHAREHOLDERS THE HOTEL COMPANY IS INVESTIGATING INVESTMENT OPPORTUNITIES IN VIETNAM AND JAPAN PARTICULARLY TOKYO THOUGH IT HASN'T MADE ANY DEALS MR RILEY SAID THE COMPANY IS EXPECTED TO RELEASE ITS 1993 EARNINGS IN MARCH AND MR RILEY DECLINED TO SUPPLY PROJECTIONS FOR 1994 BUT HE SAID THE HONG KONG MANDARIN ORIENTAL AND THE EXCELSIOR HOTEL WOULD BE THE GROUP'S MAIN GROWTH CONTRIBUTORS BECAUSE THE HONG KONG MARKET IS CLEARLY THE STRONGEST MARKET IN ASIA HE SAID THE AVERAGE OCCUPANCY RATE AT THE MANDARIN ORIENTAL FOR THE 11 MONTHS ENDED NOVEMBER 1993 WAS 66 WHILE AT THE EXCELSIOR IT WAS 88 MR RILEY SAID HE EXPECTS ROOM RATES TO RISE IN THE TERRITORY THIS YEAR THOUGH HE DIDN'T SPECIFY HOW MUCH FOR 1993 THE AVERAGE ROOM RATE WAS 21250 AT THE MANDARIN ORIENTAL AND 8350 AT THE EXCELSIOR NEXT MONTH MANDARIN IS EXPECTED TO BEGIN MANAGING A NEW RESORT IN KOH SAMUI THAILAND IT ALREADY MANAGES THE PHUKET YACHT CLUB IN THAT COUNTRY THE COMPANY HAS ALSO SECURED THE MANAGEMENT CONTRACT FOR A HOTEL IN SURABAYA INDONESIA DUE TO OPEN IN THE SECOND QUARTER OF 1995 IN WHICH IT WILL HAVE A 25 EQUITY STAKE THE COMPANY HAS SECURED LAND FOR A 630ROOM HOTEL IN KUALA LUMPUR BUT MR RILEY SAID IT STILL ISN'T CLEAR WHEN THE GROUNDBREAKING FOR THE PROJECT WILL OCCUR 9401140135 940114 TECHNOLOGY & HEALTH EVALUATION OF QUALITY OF PRENATAL CARE GIVES SIX HMOS GENERALLY HIGH MARKS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL HEALTHMAINTENANCE ORGANIZATIONS RECEIVED GENERALLY HIGH MARKS IN A NEW STUDY EVALUATING THE QUALITY OF PRENATAL CARE AT HEALTH PLANS THE REPORT BASED ON MORE THAN 24000 BIRTHS COVERED BY SIX LARGE HMOS AROUND THE US FOUND FOR INSTANCE THAT 87 OF EXPECTANT MOTHERS IN THE PARTICIPATING PLANS HAD THEIR FIRST VISIT WITH A DOCTOR IN THEIR FIRST TRIMESTER AN IMPORTANT STEP IN PREVENTING DELIVERY OF LOWBIRTHWEIGHT BABIES THE NATIONAL RATE IS 76 BUT RESEARCHERS ALSO FOUND SIGNIFICANT VARIATION IN THE OVERALL PERFORMANCE OF THE PARTICIPATING PLANS THE STUDY IS THE LATEST EXAMPLE OF A BURGEONING EFFORT TO DEVELOP VALID TOOLS FOR COMPARING HEALTH PLANS BASED ON THE QUALITY OF THEIR SERVICES KAISER PERMANENTE THE BIG OAKLAND CALIF HMO UNITED HEALTHCARE CORP MINNEAPOLIS AND US HEALTHCARE INC BLUE BELL PA FOR INSTANCE EACH RECENTLY RELEASED REPORT CARDS ON ITS PERFORMANCE ACROSS A VARIETY OF MEASURES THE EFFORTS REFLECT GROWING DEMANDS FROM EMPLOYERS FOR COMPARATIVE DATA TO GUIDE THEIR HEALTHBENEFITS PURCHASING DECISIONS THE CLINTON ADMINISTRATION'S HEALTHREFORM PLAN AS WELL AS SEVERAL COMPETING PROPOSALS INTRODUCED IN CONGRESS CALL FOR SUCH DATA TO HELP CONSUMERS CHOOSE PLANS WITH INCREASING COMPETITION AMONG HEALTH PLANS PEOPLE ARE REALLY FOCUSED ON BOTTOMLINE PREMIUM COSTS SAID ELIZABETH A MCGLYNN HEALTHPOLICY ANALYST AT RAND CORP A SANTA MONICA CALIF THINK TANK AND AN AUTHOR OF THE CURRENT STUDY IF YOU DON'T HAVE SYSTEMATIC COUNTERVAILING INFORMATION ON QUALITY YOU MIGHT DRIVE THE WRONG PROVIDERS OUT OF THE MARKET BUT MOST REPORTING EFFORTS ARE IN THEIR INFANCY AND MANY QUESTIONS REMAIN OVER WHAT DATA AND MEASURES TRULY REFLECT QUALITY THE CURRENT STUDY LOOKED AT HOW WELL HMOS PERFORMED IN PROVIDING ROUTINE SCREENING TESTS AND OTHER MEASURES OF THE PROCESS OF PRENATAL CARE SUCH AS WHETHER AN EXPECTANT MOTHER'S BLOOD PRESSURE WAS TAKEN ON EACH VISIT DONE BY RAND AND PARTLY FUNDED BY A GROUP OF HMOS CALLED THE HMO QUALITY OF CARE CONSORTIUM THE STUDY APPEARS IN THE JANUARY ISSUE OF ARCHIVES OF FAMILY MEDICINE A JOURNAL PUBLISHED BY THE AMERICAN MEDICAL ASSOCIATION WE FOUND QUITE GOOD QUALITY OF CARE IN THESE HMOS BUT THERE WAS VARIATION DR MCGLYNN SAID AGGREGATE COMPLIANCE WITH MOST OF THE CRITERIA WAS OVER 75 IN THE SIX PLANS BUT THERE WAS WIDE VARIATION IN SOME INDIVIDUAL CASES FOR INSTANCE ONE PLAN SCREENED ONLY 7 OF PATIENTS FOR GONORRHEA ON THE FIRST VISIT WHILE ANOTHER TESTED FOR THE DISEASE ON 96 HMOS WEREN'T COMPARED WITH TRADITIONAL FEEFORSERVICE CARE IN THE STUDY BUT RESEARCHERS SAID 5 OF BIRTHS IN THE STUDY WERE CONSIDERED LOWBIRTHWEIGHT COMPARED WITH A NATIONAL AVERAGE OF 7 AND JUST ONE INFANT WAS BORN AT A VERY LOW BIRTH WEIGHT AT THE SIX HMOS WELL UNDER A NATIONAL AVERAGE OF 1 THE STUDY SAID THE HMOS ALSO BETTERED THE NATIONAL AVERAGE ON BLOODPRESSURE TESTING AND MATCHED NATIONAL RATES FOR TESTING FOR ANEMIA MANY HMOS OFFER COMPREHENSIVE PRENATAL PROGRAMS IN PART TO ATTRACT YOUNG ADULT MEMBERS WHO VALUE SUCH SERVICES AND IN PART BECAUSE THE BENEFITS BOTH IN QUALITY OF LIFE AND IN COSTSAVINGS ARE WELLDOCUMENTED LEAD AUTHOR OF THE STUDY IS PAUL J MURATA A DOCTOR NOW IN PRIVATE PRACTICE IN TORRANCE CALIF 9401140134 940114 BUSINESS BRIEF CONNER PERIPHERALS INC SOFTWARE UNIT TO ACQUIRE QUEST DEVELOPMENT CORP CONNER PERIPHERALS INC SAID ITS NEW SOFTWARE UNIT HAS AGREED TO ACQUIRE QUEST DEVELOPMENT CORP A CLOSELY HELD SOFTWARE CONCERN IN SAN LUIS OBISPO CALIF CONNER A MAKER OF COMPUTER DISK DRIVES CREATED THE UNIT CALLED ARCADA SOFTWARE INC IN NOVEMBER AND TRANSFERRED ITS SOFTWARE ASSETS INTO THE UNIT LATE LAST YEAR UNDER THE AGREEMENT QUEST SHAREHOLDERS WILL RECEIVE CASH AND ARCADA SHARES IN EXCHANGE FOR ALL QUEST STOCK CONNER WHICH IS BASED IN SAN JOSE CALIF WOULDN'T PLACE A VALUE ON THE ACQUISITION CONNER INTENDS TO USE ARCADA AS AN ACQUISITION VEHICLE TO GAIN MUSCLE IN THE MARKET FOR SOFTWARE THAT MANAGES MASS STORAGE OF COMPUTER DATA SAID WILLIAM J SCHROEDER ARCADA'S CHIEF EXECUTIVE CONNER TRADITIONALLY A HARDWARE COMPANY SPIED WHAT IS AN OPENING MARKET OPPORTUNITY IN STORAGEMANAGEMENT SOFTWARE HE SAID ADDING THAT THIS IS THE FIRST CLEAR STEP THAT SHOWS WE'RE SERIOUS ABOUT IT 9401140133 940114 WESTERN GERMAN PRICES STEADY WIESBADEN WESTERN GERMAN WHOLESALE PRICES WERE UNCHANGED IN DECEMBER AND WERE UP 01 FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID FOR THE YEAR WHOLESALE PRICES DECLINED AN AVERAGE OF 11 IT SAID THE STATISTICS OFFICE SAID DECEMBER WAS THE FIRST MONTH SINCE MID1992 IN WHICH WHOLESALE PRICES DIDN'T DECLINE ON A YEARONYEAR BASIS 9401140132 940114 TECHNOLOGY & HEALTH HUBBLE TELESCOPE'S FIRST PICTURES SHOW REPAIRS WENT WELL BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HUBBLE SPACE TELESCOPE'S DAYS AS A NATIONAL LAUGHINGSTOCK ARE OVER THE FIRST PICTURES TAKEN BY THE 16 BILLION TELESCOPE SINCE SPACEWALKING ASTRONAUTS REPAIRED IT LAST MONTH OFFER PROOF THE INSTRUMENT IS AS GOOD AS NEW PERHAPS EVEN BETTER SCIENTISTS FROM THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SAID YESTERDAY THE TELESCOPE HAS BEEN THE BUTT OF JOKES SINCE IT WAS LAUNCHED IN 1990 WITH A MISSHAPEN MIRROR THAT MADE IT NEARSIGHTED THE HUBBLE IS FIXED DECLARED ED WEILER THE HUBBLE PROGRAM'S TOP SCIENTIST IT'S FIXED BEYOND OUR WILDEST EXPECTATIONS AND IT WAS DONE ON TIME AND WITHIN BUDGET THE TELESCOPE'S VISION IS NOW SO GOOD IT COULD READ A NEWSPAPER'S NAMEPLATE FROM 12 MILES AWAY AND DETECT A GLOW NO STRONGER THAN A FIREFLY'S FROM A DISTANCE OF 8500 MILES ROUGHLY WASHINGTON TO TOKYO ACCORDING TO JAMES CROCKER OF THE SPACE TELESCOPE SCIENCE INSTITUTE IN BALTIMORE ASTRONAUTS ON THE SPACE SHUTTLE ENDEAVOUR SUCCESSFULLY INSTALLED PRESCRIPTION LENSES ON THE ORBITING TELESCOPE IN DECEMBER BUT NO ONE KNEW WHETHER THEY WOULD WORK UNTIL GROUNDBASED SCIENTISTS COULD TURN ON AND FINETUNE THE INSTRUMENT'S CAMERAS OVER SEVERAL WEEKS IN THE END EVEN LESS FINETUNING THAN EXPECTED WAS NEEDED AND NASA RELEASED THE HUBBLE'S FIRST PICTURES WEEKS AHEAD OF SCHEDULE A BATCH OF COLOR AND BLACKANDWHITE PICTURES CLEARLY SHOW THE BEFOREANDAFTER EFFECTS FUZZY HALOS AROUND A STAR IN AN IMAGE TAKEN BEFORE THE REPAIR MISSION ARE GONE ALLOWING ASTRONOMERS NOT ONLY TO SEE A CLEARER POINT OF LIGHT BUT ALSO TO MEASURE THE STAR'S ENERGY A VIEW OF A SPIRAL GALAXY TENS OF MILLIONS OF LIGHT YEARS AWAY IS NOT ONLY CLEARER BUT REVEALS PREVIOUSLY UNSEEN STARS THE FIRST IMAGES WERE TAKEN ONLY TO TEST THE INSTRUMENT OVER THE NEXT 15 MONTHS NASA SCIENTISTS AND ASTRONOMERS AROUND THE WORLD WILL BEGIN MAKING SCIENTIFIC OBSERVATIONS THAT WILL ALLOW THEM TO SEE DEEPER INTO THE UNIVERSE THAN EVER BEFORE HUBBLE IS NOW EXPECTED TO LIVE UP TO ITS ORIGINAL GOALS TO HELP ASTRONOMERS FIND THE EDGE OF THE UNIVERSE MEASURE ITS SIZE REFINE ESTIMATES OF ITS AGE AND GAIN FURTHER EVIDENCE OF BLACK HOLES DESPITE THE TOTAL LOSS OF NASA'S MARS OBSERVER SPACE PROBE LAST SUMMER THE SUCCESS OF THE HUBBLE REPAIR MISSION IS EXPECTED TO HELP THE SPACE AGENCY WEATHER EFFORTS IN CONGRESS TO CUT ITS BUDGET 9401140129 940114 APACHE FINDS OIL IN NEW FIELD HOUSTON APACHE CORP SAID IT DISCOVERED OIL IN A NEW FIELD NEAR ELY NEV THE OIL AND GAS COMPANY WHICH OWNS A 384 WORKING INTEREST IN THE GRANT CANYON 2221 WELL SAID THE WELL TESTED AT 4500 BARRELS OF OIL A DAY FROM DEPTHS OF 4035 FEET TO 4065 FEET AND IS PRODUCING AT A RATE OF 2500 BARRELS A DAY APACHE OPERATOR OF THIS WELL SHARES OWNERSHIP WITH NUMEROUS MINORITY OWNERS 9401140128 940114 WHO'S NEWS FRANKLIN RESOURCES SETS SEVERANCE PACKAGE SAN MATEO CALIF FRANKLIN RESOURCES INC AGREED TO PAY ABOUT 9 MILLION IN STOCK AND CASH TO A DEPARTING EXECUTIVE WHO JOINED THE MUTUAL FUND COMPANY WHEN IT ACQUIRED TEMPLETON GALBRAITH & HANSBERGER LTD IN 1992 FRANKLIN RESOURCES AGREED TO THE SEVERANCE PACKAGE FOR THOMAS HANSBERGER WHO RESIGNED IN OCTOBER AS A FRANKLIN RESOURCES DIRECTOR AND AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS TEMPLETON WORLDWIDE INC UNIT ACCORDING TO A FRANKLIN RESOURCES PROXY STATEMENT DATED DEC 30 THE PACKAGE INCLUDES 829 MILLION IN CASH AND SHARES VALUED AT 581000 MR HANSBERGER WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TEMPLETON BEFORE ITS ACQUISITION BY FRANKLIN RESOURCES 9401140126 940114 WHO'S NEWS HOME HOLDINGS INC HOME HOLDINGS INC NEW YORK LAURENCE W CHENG ROBERT R DOUGLASS AND ZAID PEDERSEN WERE ELECTED DIRECTORS OF THIS INSURANCE HOLDING COMPANY INCREASING THE SIZE OF THE BOARD TO 13 MR CHENG 46 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ZURICH INTERNATIONAL BERMUDA LTD AND CHIEF OPERATING OFFICER OF CENTRE REINSURANCE BERMUDA LTD MR DOUGLASS 62 IS AN ATTORNEY AT THE LAW FIRM OF MILBANK TWEED HADLEY & MCCLOY AND CHAIRMANELECT OF THE BOARD AT CEDEL IN LUXEMBOURG MR PEDERSEN IS EXECUTIVE VICE PRESIDENT AND CONTROLLER OF TRYGGHANSA SPP IN STOCKHOLM 9401140125 940114 S&P INDEX TO DROP BAROID NEW YORK STANDARD & POOR'S CORP SAID BAROID CORP WILL BE REMOVED FROM ITS S&P MIDCAP 400 INDEX AFTER THE CLOSE OF TRADING WEDNESDAY BECAUSE OF DRESSER INDUSTRIES INC'S PLANNED ACQUISITION OF THE DRILLING SERVICES AND EQUIPMENT COMPANY PARKER & PARSLEY PETROLEUM CO A MIDLAND TEXAS OIL AND GAS COMPANY WILL REPLACE BAROID 9401140124 940114 GENTRA REPAYS LOAN TO TRILON TORONTO GENTRA INC SAID IT REPAID TO TRILON FINANCIAL CORP A LOAN OF 100 MILLION CANADIAN DOLLARS US756 MILLION GENTRA FORMERLY NAMED ROYAL TRUSTCO LTD SAID THE LOAN WAS RELATED TO THE ACQUISITION OF ROYAL TRUSTCO ASSETS BY ROYAL BANK OF CANADA LAST YEAR TRILON IS A FINANCIAL SERVICES HOLDING COMPANY 9401140123 940114 FORD EXPORTS SET RECORD DEARBORN MICH FORD MOTOR CO SAID ITS EXPORTS OF NORTH AMERICANBUILT VEHICLES REACHED A RECORD LAST YEAR RISING 42 FROM THE PREVIOUS YEAR FORD SAID IT SHIPPED 70999 CARS AND LIGHT TRUCKS TO EXPORT MARKETS UP FROM 50000 VEHICLES IN 1992 THE TOP FIVE EXPORTED MODELS WERE THE FORD PROBE TEMPO EXPLORER SPORTUTILITY TAURUS AND RANGER PICKUP FORD'S LARGEST EXPORT MARKET IS LATIN AMERICA WHICH ACCOUNTED FOR 30 OR 21038 EXPORTED VEHICLES 9401140122 940114 TECHNOLOGY & HEALTH TUBERCULOSIS RESEARCHERS' DISCOVERY AIDS DRIVE TO TREAT DRUGRESISTANT TB BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RESEARCHERS SAY THEY HAVE DISCOVERED A SECRET TO THE TUBERCULOSIS BACTERIA'S ALARMING ABILITY TO DEVELOP RESISTANCE TO ONE OF THE MOST WIDELY USED ANTITB DRUGS ISONIAZID THE DISCOVERY CREATES A POWERFUL TOOL IN THE SEARCH FOR NEW DRUGS TO TREAT DRUGRESISTANT TUBERCULOSIS WHICH AFFECTS A QUARTER OF TB CASES IN SOME CITIES SAID WILLIAM R JACOBS JR WHO HEADED THE RESEARCH TEAM THAT MADE THE DISCOVERY PHARMACEUTICAL COMPANIES ALREADY HAVE EXPRESSED INTEREST IN GAINING ACCESS TO THE RESEARCHERS' WORK SAID DR JACOBS A HOWARD HUGHES MEDICAL INSTITUTE RESEARCHER AT THE ALBERT EINSTEIN COLLEGE OF MEDICINE IN THE BRONX THE DRUG ISONIAZID HAS BEEN USED SINCE 1952 WHEN IT WAS HAILED AS A MILESTONE IN THE FIGHT AGAINST TB BECAUSE IT WASN'T AS TOXIC AND WAS MUCH MORE EFFECTIVE THAN OTHER DRUGS DR JACOBS SAID WITHIN A FEW YEARS HOWEVER TB BACTERIA BEGAN TO SHOW RESISTANCE TO THE DRUG AND ADDITIONAL DRUGS WERE ADDED TO THE STANDARD THERAPY WHICH PROVED EFFECTIVE FOR DECADES BUT NEW STRAINS HAVE EMERGED THAT DEFY THE STANDARD THERAPY MAKING TREATMENT FAR MORE COSTLY AND DIFFICULT THE STANDARD DRUG THERAPY COSTS ABOUT 300 BUT THE COST OF DRUGS TO TREAT RESISTANT STRAINS IS 10 TIMES HIGHER DR JACOBS NOTED BUT THE BRONX RESEARCHERS THINK THEY HAVE FOUND THE GENE MUTATION THAT ENABLES THE TB BACTERIA TO RESIST THE KILLING ACTION OF ISONIAZID IN A PAPER PUBLISHED IN TODAY'S ISSUE OF SCIENCE THE BRONX RESEARCHERS AND COLLABORATORS IN NEW ZEALAND REPORT THE IDENTIFICATION OF THE GENE INHA WHICH PRODUCES AN ENZYME THAT THEY BELIEVE IS INVOLVED IN THE BACTERIA'S ABILITY TO BUILD CELL WALLS AND MULTIPLY THE RESEARCHERS HYPOTHESIZE ISONIAZID BINDS TO THE ENZYME AND PREVENTS THE BACTERIA FROM MULTIPLYING THE MUTATED GENE HOWEVER MAKES A SLIGHTLY ALTERED ENZYME THAT DOESN'T ALLOW THE DRUG TO BIND THEY THEORIZED THE RESEARCHERS INITIALLY FOUND THE GENE MUTATIONS IN TWO RELATED BACTERIA CALLED M SMEGMATIS AND M BOVIS AND RECENTLY IN THE TB BACTERIA ITSELF TB RESEARCHERS OFTEN WORK WITH M SMEGMATIS BECAUSE IT DOESN'T CAUSE ANY DISEASE BUT IS VERY SIMILAR TO THE TB BACTERIA AND GROWS MUCH FASTER M BOVIS IS ALSO GENETICALLY SIMILAR TO THE TB GENE AND CAUSES TUBERCULOSIS IN CATTLE WHICH CAN BE TRANSMITTED TO HUMANS THROUGH MILK OR MEAT CONSUMPTION THE RESEARCHERS TRANSFERRED COPIES OF THE MUTANT INHA GENE INTO NORMAL STRAINS OF M SMEGMATIS AND M BOVIS AND FOUND THE ALTERED BACTERIA WERE RESISTANT TO ISONIAZID PURSUING A SECOND HYPOTHESIS THE RESEARCHERS ALSO INSERTED MULTIPLE COPIES OF THE NORMAL INHA GENE INTO NORMAL STRAINS OF M SMEGMATIS AND FOUND THE BACTERIA BECAME RESISTANT TO ISONIAZID BECAUSE THERE'S SO MUCH OF THE ENZYME BEING PRODUCED THE DRUG MAY BIND TO SOME OF IT BUT MISS ENOUGH TO ALLOW THE BACTERIA TO REPLICATE AND CAUSE DISEASE DR JACOBS THEORIZED THE RESEARCHERS ARE CONTINUING RESEARCH TO UNDERSTAND EXACTLY HOW THE DRUGRESISTANCE PROCESS WORKS IN THE TB BACTERIA BUT THE DISCOVERY OF THE GENE AND THE MUTATION ALLOWS WORK TO BEGIN RIGHT AWAY ON FINDING DRUGS THAT WILL WORK AGAINST THE ENZYME DR JACOBS SAID NEGOTIATIONS ARE ALREADY UNDER WAY TO LICENSE THE GENETIC INFORMATION HE SAID BUT HE DECLINED TO IDENTIFY THE INTERESTED COMPANY 9401140121 940114 DIEBOLD BUYS STAKE IN CONCERN CANTON OHIO DIEBOLD INC SAID IT BOUGHT 50 OF A VENEZUELAN CONCERN OLTP ATM SYSTEMS CA OF CARACAS TO DISTRIBUTE AND SERVICE DIEBOLD'S AUTOMATEDTELLER MACHINES AND ELECTRONICSECURITY SYSTEMS IN VENEZUELA TERMS WEREN'T DISCLOSED DIEBOLD HAS MORE THAN 40 OF THE 2700 ATMS IN VENEZUELA THROUGH INTERBOLD ITS ATM JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORP 9401140120 940114 EXXON NORTH SEA VENTURE IRVING TEXAS EXXON CORP SAID IT HAS BRITISH GOVERNMENT APPROVAL FOR A 260 MILLION DEVELOPMENT OF NATURALGAS RESERVES IN TWO FIELDS IN THE SOLE PIT AREA OF THE SOUTHERN NORTH SEA EXXON AND SHELL OIL CO A UNIT OF ROYAL DUTCH/SHELL GROUP EACH OWN A 50 INTEREST IN THE PROJECT EXXON SAID INITIAL PRODUCTION FROM THE PROJECT WILL BEGIN IN OCTOBER 1994 9401140119 940114 TECHNOLOGY & HEALTH MOTOROLA PROFIT ROSE BY 88 IN 4TH QUARTER ON 35 SURGE IN SALES SCHAUMBURG ILL MOTOROLA INC CITING GROWING SALES ACROSS ITS MAJOR PRODUCT LINES DUE TO INCREASED INTERNATIONAL INVESTMENT AS THE ECONOMIES EXPAND REPORTED AN 88 INCREASE IN FOURTHQUARTER NET INCOME PROFIT WAS 340 MILLION OR 115 A SHARE COMPARED WITH 181 MILLION OR 64 CENTS A SHARE A YEAR EARLIER THE EARNINGS WERE AT THE HIGH END OF FINANCIAL ANALYSTS' EXPECTATIONS WHICH RANGED FROM 93 CENTS TO 115 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC MOTOROLA ATTRIBUTED THE RESULTS TO A 35 GROWTH IN TOTAL SALES FOR THE QUARTER TO 499 BILLION FROM 371 BILLION A YEAR EARLIER SEMICONDUCTOR SALES FOR 1993 ROSE 28 TO 570 BILLION FROM 448 BILLION WITH STRONG GROWTH IN THE ASIAPACIFIC REGION SALES IN ITS GENERALSYSTEMS SECTOR WHICH INCLUDES CELLULAR PHONES GREW 43 TO 524 BILLION FROM 366 BILLION SALES IN MOTOROLA'S COMMUNICATIONS SECTOR WHICH INCLUDES SUCH PRODUCTS AS MOBILERADIO EQUIPMENT AND PAGERS GREW 24 TO 483 BILLION IN 1993 FROM 391 BILLION A YEAR EARLIER SALES IN ITS GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP GREW 32 TO 858 MILLION FROM 650 MILLION IN A STATEMENT GARY TOOKER MOTOROLA'S CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS STEADY GROWTH IN NORTH AMERICA AS WELL AS GROWTH IN NEW MARKETS SUCH AS CHINA AND IN EUROPE AND JAPAN 9401140118 940114 REPUBLIC NEW YORK CORP NEW YORK REPUBLIC NEW YORK CORP RECEIVED APPROVAL FROM THE FEDERAL RESERVE SYSTEM'S BOARD OF GOVERNORS TO UNDERWRITE AND TRADE IN EQUITY AND DEBT SECURITIES THROUGH ITS REPUBLIC NEW YORK SECURITIES CORP SUBSIDIARY THE UNIT WHICH BEGAN OPERATIONS IN NOVEMBER 1992 IS A BROKERDEALER REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION REPUBLIC NEW YORK IS THE HOLDING COMPANY OF REPUBLIC NATIONAL BANK OF NEW YORK AND REPUBLIC BANK FOR SAVINGS 9401140117 940114 FIDELITY DRAWS SEC INQUIRIES ON FUND CHIEFS AGENCY EXAMINES TRADING FOR PERSONAL ACCOUNTS BY PORTFOLIO MANAGERS BY GARY PUTKA AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS EXAMINING PERSONAL TRADING RECORDS OF FIDELITY INVESTMENTS' PORTFOLIO MANAGERS TO DETERMINE WHETHER THEY PROFITED FROM TRADING IN ADVANCE OF BIG MUTUALFUND TRANSACTIONS ACCORDING TO PEOPLE FAMILIAR WITH THE SEC'S INQUIRIES THE COMMISSION'S INTEREST HAS BEEN SPURRED BY FIDELITY'S RECENT STATEMENTS THAT IT TIGHTENED ITS TRADING RULES IN NOVEMBER AND HAS TAKEN DISCIPLINARY ACTION AGAINST SOME EMPLOYEES IN ADDITION FORMER FIDELITY EMPLOYEES SAY THREE PORTFOLIO MANAGERS CAME UNDER SCRUTINY INTERNALLY IN LATE 1993 FOR AGGRESSIVE TRADING IN THEIR PERSONAL ACCOUNTS THAT RAISED ETHICAL ISSUES FIDELITY DECLINED TO COMMENT ON WHETHER THE SEC HAD MADE ANY INQUIRIES BUT IT SAID IT WOULD COOPERATE FULLY WITH ANY INQUIRY FROM THE AGENCY PEOPLE WITH KNOWLEDGE OF THE SEC'S INQUIRIES SAY THE COMMISSION WANTS TO DETERMINE WHETHER THESE OR ANY OTHER EMPLOYEES PROFITED BY FRONT RUNNING BUYING SHARES IN ADVANCE OF BIG FUND ORDERS THEN SELLING THEM AFTER THE FUNDS' BUYING LIFTS THE SHARE PRICE THE SEC INVESTIGATION WAS FIRST REPORTED BY THE WASHINGTON POST IN THE PAST FEW DAYS THE SEC HAS REQUESTED TRADING RECORDS FROM THE BIG BOSTONBASED MUTUALFUND CONCERN WHICH HAS MORE THAN 260 BILLION UNDER MANAGEMENT SEC RULES REQUIRE THAT PORTFOLIO MANAGERS REPORT ALL PERSONAL SECURITIES TRANSACTIONS TO THEIR EMPLOYERS QUARTERLY AND FIDELITY DICTATES SUCH REPORTING MONTHLY THE COMMISSION'S INQUIRIES OF FIDELITY ARE PRELIMINARY AND ARE PART OF A RISING CONCERN ABOUT FUND MANAGERS' PERSONAL TRADING LAST WEEK INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR HIS ALLEGED FAILURE TO TELL HIS EMPLOYERS ABOUT HIS TRADING FIDELITY HAS NO RULE AGAINST ITS PORTFOLIO MANAGERS HOLDING THE SAME STOCKS OWNED BY THE FUNDS THEY MANAGE BUT ITS ETHICS CODE FORBIDS PERSONAL BUYING THAT TAKES PLACE WITH KNOWLEDGE THAT A FIDELITY FUND IS ABOUT TO BUY ACCORDING TO FIDELITY'S HOUSE RULES FUND MANAGERS MAY BUY A STOCK PURCHASED BY A FIDELITY FUND FIVE DAYS AFTER THE FUND BUYS SOME FIDELITY INSIDERS SAY THAT THE FIRM HAS BECOME CONCERNED ABOUT THE PERSONAL TRADING OF SOME YOUNGER FUND MANAGERS THEY SAY THE PERSONAL TRADING UNDER QUESTION DIDN'T APPEAR TO OVERTLY VIOLATE FIDELITY'S CODE OF ETHICS BUT MAY HAVE VIOLATED ITS SPIRIT SUCH HOUSE RULES ARE DESIGNED NOT JUST TO MAINTAIN COMPLIANCE WITH SECURITIES LAWS BUT TO ENSURE THAT EMPLOYEES DON'T TAKE ADVANTAGE OF THEIR POSITIONS AND THAT FUND SHAREHOLDERS AREN'T HARMED FINANCIALLY BY ANY PERSONAL DEALINGS BY MUTUALFUND EMPLOYEES FORMER FIDELITY EMPLOYEES SAY PERSONAL STOCK TRADING BY SOME FIDELITY FUND MANAGERS IS CONSIDERABLE AND HAS GROWN DURING THE BULL MARKET SOMETIMES TOTALING HUNDREDS OF TRANSACTIONS A YEAR THE SIZE AND COMPLEXITY OF THESE TRADES HAS ALSO GROWN ACCORDING TO RECENT FIDELITY DEPARTURES FIDELITY IS RESPONDING TO THE INCREASINGLY ACTIVE TRADING OF SOME OF THE YOUNG TURKS OVER THERE SAID ONE EXFIDELITY FUND MANAGER IN BOSTON THERE IS WAY MORE ACTION OVER THERE NOW THAN THERE WAS 10 YEARS AGO FIDELITY IN THE PAST HAS HAD SERIOUS PROBLEMS WITH A FUND MANAGER'S PERSONAL DEALINGS IN JULY 1993 THE US SECOND CIRCUIT COURT OF APPEALS UPHELD THE CONVICTION OF PATRICIA OSTRANDER A FORMER FIDELITY INVESTMENTS FUND MANAGER FOR ACCEPTING AN ILLEGAL GRATUITY FROM MICHAEL MILKEN IN RETURN FOR STEERING BUSINESS TO DREXEL BURNHAM LAMBERT INC ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE 9401140116 940114 YOUR MONEY MATTERS WEEKEND REPORT TEN QUESTIONS MUTUALFUND INVESTORS SHOULD ASK BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL HERO TODAY GOAT TOMORROW THAT'S A FAMILIAR PATTERN IN THE MUTUALFUND INDUSTRY A FUND CLIMBS TO THE TOP OF THE FIVEYEAR OR 10YEAR PERFORMANCE CHARTS PROMPTING A DELUGE OF MONEY FROM NEW INVESTORS THE FUND'S INVESTMENT RETURNS THEN SLIDE INTO MEDIOCRITY OR WORSE CONSIDER THE 44 WALL STREET FUND WHICH WAS MERGED OUT OF EXISTENCE LAST YEAR IT SOARED 3921 IN THE 1970S MAKING IT THE DECADE'S THIRDBEST MUTUALFUND PERFORMER ACCORDING TO LIPPER ANALYTICAL SERVICES BUT IN THE 1980S IT PLUNGED TO THE BOTTOM OF THE MUTUALFUND RANKINGS WITH A LOSS OF 731 EVEN IF A TOPRANKED FUND CONTINUES TO PERFORM WELL IT MAY NOT BE THE RIGHT INVESTMENT FOR YOU TO AVOID OWNING THE WRONG FUND HERE ARE 10 QUESTIONS TO ASK BEFORE YOU BUY A FUND WITH A STRONG TRACK RECORD YOU CAN BUY THE BESTPERFORMING MONEYMARKET FUND OR THE BESTPERFORMING BOND FUND AND IT ISN'T GOING TO DO YOU ANY GOOD IF YOU NEED GROWTH SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER CONVERSELY IF YOU GET SEDUCED INTO A STOCK FUND THAT SUDDENLY DROPS 20 AND YOU CAN'T STAND ANY LOSS OF PRINCIPAL YOU'VE OBVIOUSLY MADE A BIG MISTAKE BEFORE BUYING A TOPPERFORMING STOCK FUND LOOK AT HOW IT PERFORMED IN PERIODS WHEN STOCK PRICES FELL DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SUGGESTS CHECKING THE FUND'S PERFORMANCE IN THE FOURTH QUARTER OF 1987 AND THE THIRD QUARTER OF 1990 THAT WAY HE SAYS YOU KNOW WHAT THE WORSTCASE SCENARIO IS IF THE LOSS THAT'S BEEN DEMONSTRATED IS MORE THAN YOU CAN TAKE YOU SHOULD MOVE ON AND LOOK AT OTHER OFFERINGS FUND ANALYSTS SAY MOST STOCKFUND INVESTORS SHOULD OWN A DIVERSIFIED PORTFOLIO THAT INCLUDES LARGECOMPANY STOCK FUNDS SMALLCOMPANY STOCK FUNDS AND FOREIGN FUNDS TO ENSURE YOU DON'T HAVE TOO MUCH MONEY RIDING ON ONE SECTOR OF THE MARKET YOU MAY WANT TO IGNORE A WELLRUN FUND IF YOU OWN ANOTHER TOPPERFORMING FUND WITH A SIMILAR INVESTMENT STYLE A LOT OF PEOPLE HAVE THIS ILLUSION OF DIVERSIFICATION SAYS MR PHILLIPS BUT ACTUALLY THEY OWN FIVE STOCK FUNDS THAT HAVE SHADINGS OF THE SAME INVESTMENT STYLE IT'S IMPORTANT TO COMPARE APPLES WITH APPLES AND ORANGES WITH ORANGES FOR INSTANCE PUTNAM HEALTH SCIENCES TRUST RETURNED 1182 OVER THE FIVE YEARS ENDED 1993 EASILY AHEAD OF THE 981 AVERAGE GAIN FOR DIVERSIFIED US STOCKMUTUAL FUNDS BUT IS THE PUTNAM FUND A GOOD CHOICE NOT IF YOU COMPARE ITS RECORD WITH THAT OF OTHER HEALTHCARE FUNDS THE PUTNAM FUND HAS HAD THE POOREST PERFORMANCE OF THE EIGHT HEALTHCARE FUNDS THAT WERE AROUND FOR THE PAST FIVE YEARS MIM STOCK APPRECIATION FUND SURGED 1478 OVER THE PAST SIX CALENDAR YEARS EASILY OUTPACING THE 1296 RETURN FOR THE STANDARD & POOR'S 500STOCK INDEX BUT THE CORNERSTONE OF MIM'S RECORD WAS AN ASTOUNDING 77 GAIN IN 1991 IT'S BEEN A FINE RETURN IF YOU WERE IN FOR THE WHOLE RIDE SAYS MORNINGSTAR'S MR PHILLIPS BUT IF YOU MISSED CALENDAR 1991 YOU GOT UNINSPIRED RETURNS CONSISTENCY OF PERFORMANCE IS VERY IMPORTANT IT INCREASES THE LIKELIHOOD THAT YOU'RE GOING TO STAY ON BOARD AND REALIZE THE BENEFITS OF OWNING THAT FUND FUND ANALYSTS ARGUE THAT A FUND'S STRONG PERFORMANCE IS MORE LIKELY TO CONTINUE IF IT'S THE RESULT OF INVESTING IN A BROAD SELECTION OF STOCKS THEY SAY YOU SHOULD BE LEERY OF STOCK FUNDS THAT DO WELL BECAUSE THEY ARE INVESTED HEAVILY IN A SINGLE STOCK OR INDUSTRY SECTOR IT'S NOT JUST SECTOR FUNDS THAT FALL INTO THAT CATEGORY THERE'S A CLOSEDEND FUND CALLED BERGSTROM CAPITAL WHICH HAS HAD TREMENDOUS PERFORMANCE SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER BUT A THIRD OF ITS ASSETS WAS IN ONE STOCK AMGEN LAST YEAR BERGSTROM HAD POOR PERFORMANCE AMGEN DIDN'T DO TOO WELL EITHER ANALYSTS SAY YOU ALSO SHOULD BE WARY OF BOND FUNDS AND MONEYMARKET FUNDS THAT PROPEL THEMSELVES TO THE TOP OF THE PERFORMANCE CHARTS BY DECIDING TO WAIVE PART OR ALL OF THEIR ANNUAL EXPENSES BEFORE YOU BUY THOSE FUNDS MAKE SURE THE FEE WAIVER IS LIKELY TO CONTINUE MICHAEL STOLPER PUBLISHER OF MUTUAL FUND MONTHLY A SAN DIEGO NEWSLETTER CURRENTLY RECOMMENDS INVESCO INDUSTRIAL INCOME FUND FOR ONE OF HIS NEWSLETTER'S MODEL PORTFOLIOS EARLIER THIS MONTH ONE OF THE INVESCO FUND'S THREE COMANAGERS JOHN KAWESKE WAS FIRED FOR ALLEGEDLY TRADING SECURITIES FOR HIS OWN ACCOUNT WITHOUT INFORMING HIS EMPLOYER EVEN THOUGH THE FUND'S OTHER TWO MANAGERS REMAIN MR STOLPER SAYS HE'S GOING TO ADVISE SUBSCRIBERS TO SELL THE FUND IT'S JUST GONE FROM A KNOWN TO AN UNKNOWN HE SAYS FROM EXPERIENCE I'VE FOUND THAT THE BEST WAY TO DEAL WITH THAT IS FROM A DISTANCE STEPHEN SAVAGE EDITOR OF THE VALUE LINE MUTUAL FUND SURVEY A NEW YORK NEWSLETTER SAYS SIZE IS CRITICAL WITH FUNDS THAT BUY SMALLERCOMPANY STOCKS HE SAYS HE WOULD BE LEERY OF SMALLSTOCK FUNDS WITH ASSETS OVER 250 MILLION BUT MR SAVAGE RECKONS CONCERNS ABOUT FUND SIZE ARE OVERRATED WHEN IT COMES TO LARGERCOMPANY STOCK FUNDS EVERYBODY'S BEEN TALKING ABOUT FIDELITY MAGELLAN FOR YEARS HE SAYS THEY SAID MAGELLAN WAS TOO BIG AT 10 BILLION BUT THE FUND HAS NOW GOT 30 BILLION AND IT'S COMING OFF A GREAT YEAR CONSIDERABLE GIRTH IS A BENEFIT FOR BOND FUNDS HE ADDS IN EVALUATING BOND FUNDS EXPENSES ARE THE MOST IMPORTANT THING MR SAVAGE SAYS SIZE IS NICE BECAUSE YOU GET THE ECONOMIES OF SCALE IF YOU'RE A RETIREE LOOKING TO TAP YOUR MUTUAL FUNDS FOR SPENDING MONEY YOU MAY WANT TO BUY STOCK FUNDS THAT MAKE BIG INCOME DISTRIBUTIONS EACH YEAR THIS OFTEN IS THE CASE WITH EQUITYINCOME FUNDS AND GROWTHANDINCOME FUNDS BUT THESE FUNDS EVEN IF THEY ARE RUN WELL COULD BE A LOUSY INVESTMENT FOR SOMEBODY TRYING TO HOLD DOWN THEIR TAX BILL IF YOU'RE IN A TAXABLE ACCOUNT THE MORE OF THE GAINS YOU GET IN CAPITAL GAINS AND ESPECIALLY UNREALIZED CAPITAL GAINS THE BETTER OFF YOU ARE SAYS MORNINGSTAR'S MR PHILLIPS ALL TOTAL RETURNS AREN'T EQUAL IF YOU BUY A TOPPERFORMING FUND THAT TURNS INTO A DOG THE PAIN IS EVEN MORE EXCRUCIATING IF YOU PAID A SALES COMMISSION OR IF THE FUND HAS HIGH ANNUAL EXPENSES YOU NOT ONLY GET LOUSY PERFORMANCE BUT YOU ALSO END UP EATING THE SALES COMMISSION AND THE HIGH EXPENSES SAYS MR BROUWER THE SAN FRANCISCO INVESTMENT ADVISER 9401140115 940114 MANILA EXCHANGES MAY MEET DEADLINE TO COMPLETE MERGER MANILA ALMOST A YEAR AFTER MANILA'S TWO STOCK EXCHANGES AGREED TO MERGE THE GOVERNMENTBROKERED MARRIAGE IS FINALLY NEARING CONSUMMATION EXCHANGE OFFICIALS SAY THEY HOPE TO LINK THE TWO TRADING FLOORS BY COMPUTER THIS MONTH CREATING A SINGLEPRICE MARKET THAT WILL LIKELY DRIVE ALREADYSOARING TRADING VOLUMES EVEN HIGHER EDUARDO DE LOS ANGELES PRESIDENT OF THE UNIFIED PHILIPPINE STOCK EXCHANGE SAID TRIAL RUNS WILL CONTINUE NEXT WEEK AND THAT HE WAS HOPEFUL OF MEETING THE JANUARY DEADLINE FOR LINKING THE MANILA AND MAKATI BOURSES A TECHNICIAN'S ERROR AND AN INTERNAL SYSTEM ERROR HAD SCUTTLED TESTS OVER THE PAST FEW DAYS HE SAID AT A NEWS CONFERENCE TO ANNOUNCE A SERIES OF AMBITIOUS PLANS FOR THE MERGED EXCHANGE AMONG THE PROJECTS PLANNED ARE A COMPUTERIZED CLEARING HOUSE AND DEPOSITORY SYSTEM WHICH WOULD LEAD EVENTUALLY TO PAPERLESS TRADING TOUGHER LISTING REQUIREMENTS AND RULES TO PROMOTE FAIRER ALLOCATION OF NEW ISSUES THE INTRODUCTION OF OPTIONS AND BOND TRADING AND THE ESTABLISHMENT OF A FUND TO REIMBURSE INVESTORS WHEN BROKERS GO BUST SO FAR UNIFICATION HAS BEEN SLOW GOING ALTHOUGH TECHNICALLY PART OF A SINGLE EXCHANGE SINCE LAST MARCH THE MANILA AND MAKATI FLOORS HAVE CONTINUED TO TRADE INDEPENDENTLY THE SAME STOCKS ARE LISTED ON BOTH EXCHANGES BUT PRICES OCCASIONALLY VARY BETWEEN THE TWO BICKERING BETWEEN THE TWO BOURSES OVER ISSUES SUCH AS THE SITE OF A UNIFIED EXCHANGE AND ITS BYLAWS HAS HAMPERED THE COUPLING ALTHOUGH BROKERS SAY THE INFIGHTING APPEARS TO HAVE SIMMERED DOWN LATELY DUE TO PRESSURE FROM THE GOVERNMENT THE DELAYED UNION DIDN'T DETER INVESTORS LAST YEAR A FLOOD OF FOREIGN FUNDS COUPLED WITH A GENERAL OPTIMISM ABOUT PHILIPPINE ECONOMIC RECOVERY THIS YEAR PUSHED THE MANILA COMPOSITE INDEX UP 154 IN 1993 THE BEST PERFORMANCE IN ASIA WHILE AVERAGE TRADING VOLUME JUMPED THREEFOLD TO ONE BILLION PHILIPPINE PESOS 368 MILLION A DAY AT EACH FLOOR 9401140114 940114 ORBIT COMPLETES STOCK BUYBACK HAUPPAUGE NY ORBIT INTERNATIONAL CORP HAS COMPLETED THE BUYBACK OF 250000 COMMON SHARES OR ABOUT 4 OF THE COMPANY'S SHARES OUTSTANDING THE REPURCHASED SHARES WERE BOUGHT DURING THE PAST THREE MONTHS AT 456 TO 530 EACH THE COMPANY SAID AS A RESULT OF THE BUYBACK PROGRAM ORBIT NOW HAS 6350000 SHARES OUTSTANDING THE COMPANY WHICH MAKES ELECTRONIC COMPONENTS AS WELL AS WOMEN'S AND CHILDREN'S APPAREL SAID MANAGEMENT MAY CONSIDER BUYING BACK ADDITIONAL SHARES FROM TIME TO TIME IN THE FUTURE DEPENDING ON THE PRICE AND OTHER FACTORS 9401140113 940114 CENCALL COMMUNICATIONS OFFER DENVER CENCALL COMMUNICATIONS CORP SAID IT COMPLETED AN OFFERING OF SENIOR REDEEMABLE DISCOUNT NOTES DUE 2004 AND WILL USE NET PROCEEDS OF 2412 MILLION TO FUND CAPITAL EXPENDITURES AND WORKING CAPITAL REQUIREMENTS RELATED TO ITS HIGHCAPACITY DIGITAL MOBILE NETWORKS AS WELL AS FOR FUTURE ACQUISITIONS THE BONDS NONCALLABLE FOR FIVE YEARS PAY NO INTEREST FOR THE FIRST FIVE YEARS AND THEREAFTER CARRY A 10 1/8 COUPON THE OFFERING WAS MANAGED BY MERRILL LYNCH & CO 9401140112 940114 INTERNATIONAL YELTSIN TELLS CLINTON HIS REFORMS WILL PROCEED DESPITE OPPOSITION NEW CABINET IS EXPECTED TO REFLECT THIS RESOLVE CHUBAIS IS TO STAY ON BY KENNETH H BACON AND ADI IGNATIUS STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN TOLD PRESIDENT CLINTON THAT HE INTENDS TO CONTINUE HIS MARCH TOWARD A MARKET ECONOMY DESPITE EXPECTED ROADBLOCKS FROM A NEW MORE CONSERVATIVE PARLIAMENT PRESIDENT YELTSIN EMPHASIZED THERE IS NO TURNING BACK FROM FIGHTING INFLATION AND CONTINUING TO PRIVATIZE TREASURY SECRETARY LLOYD BENTSEN SAID AFTER A TWOHOUR MEETING BETWEEN THE TWO CHIEFS OF STATE AND THEIR ECONOMIC TEAMS IN FACT THE YELTSIN GOVERNMENT WANTS TO ACCELERATE SOME OF ITS REFORMS MR BENTSEN SAID TO DRIVE HOME THE POINT MR YELTSIN HAD TOLD MR CLINTON IN AN EARLIER PRIVATE MEETING THAT ANATOLY CHUBAIS THE ARCHITECT OF RUSSIA'S PRIVATIZATION PROGRAM WILL REMAIN IN HIS CABINET AS DEPUTY PRIME MINISTER THERE HAD BEEN SPECULATION THAT MR CHUBAIS WOULDN'T BE REAPPOINTED MR YELTSIN IS EXPECTED TO NAME A NEW CABINET MONDAY AND US OFFICIALS ARE HOPING THAT HE'LL STICK WITH HIS REFORM TEAM INCLUDING FINANCE MINISTER BORIS FYODOROV MR YELTSIN GAVE NO HINTS ABOUT THE FATE OF OTHER OFFICIALS BUT ONE US PARTICIPANT IN THE MEETINGS SAID MR FYODOROV PROJECTED A SENSE OF CONTINUITY BUT MR CLINTON ALSO GOT A FIRSTHAND TASTE OF SOME OF THE DIFFICULTIES MR YELTSIN AND HIS REFORM TEAM MAY ENCOUNTER FROM PARLIAMENT AT A RECEPTION FOR PROMINENT RUSSIANS AT SPASSO HOUSE THE US AMBASSADOR'S RESIDENCE SERGEI BABURIN A PARLIAMENTARIAN FROM THE ANTIYELTSIN ULTRANATIONALIST PARTY THAT SCORED STRONGLY IN THE DEC 12 ELECTIONS LOUDLY WARNED MR CLINTON NOT TO FORGET THE ROLE OF PARLIAMENT IN MAKING POLICY ONE OF THE ADMINISTRATION'S FEARS IS THAT PARLIAMENT WILL OPPOSE YELTSIN ANTIINFLATION POLICIES IN REMARKS AT THE RECEPTION MR CLINTON NOTED THAT US SUPPORT SHAPES EVENTS IN RUSSIA BUT STATED THAT IN THE END YOU WILL HAVE TO DECIDE YOUR FUTURE ALTHOUGH THE MEETINGS YESTERDAY MORNING DEALT MAINLY WITH THE PACE AND IMPORTANCE OF RUSSIA'S ECONOMIC CHANGES US OFFICIALS SAID THAT PRESIDENTS CLINTON AND YELTSIN AGREED IN THEIR PRIVATE MEETING THAT THE TWO FORMER ADVERSARIES WILL STOP AIMING THEIR NUCLEAR WEAPONS AT EACH OTHER INSTEAD THE MISSILES WILL BE RETARGETED TOWARD THE OCEANS THE CHANGE IS MOSTLY SYMBOLIC BECAUSE THE MISSILES CAN BE REDIRECTED VERY QUICKLY BUT IT DOES REDUCE THE CHANCE OF A NUCLEAR ACCIDENT THIS CHANGE WILL BE ANNOUNCED TODAY WHEN THE LEADERS SIGN A DISARMAMENT AGREEMENT UNDER WHICH THE US WILL PAY RUSSIA AND THREE OTHER FORMER SOVIET REPUBLICS FOR DISMANTLING NUCLEAR WEAPONS US OFFICIALS WERE CLEARLY UPBEAT AFTER THE MEETINGS THEY SAID THERE WAS A STRONG SENSE OF RAPPORT WE'VE BEEN REASSURED ABOUT THE RUSSIANS' COMMITMENT TO REFORM AND I THINK THAT RUSSIANS HAVE BEEN REASSURED ABOUT OUR COMMITMENT TO REFORM SAID ONE PARTICIPANT IN THE MEETINGS THERE WAS A SENSE OF SHARED STRATEGY SECRETARY BENTSEN SAID THE PRESIDENTS AGREED THAT MORE ATTENTION HAS TO BE PAID TO EASING THE HARDSHIPS OF REFORM SUCH AS UNEMPLOYMENT INFLATION AND UNCERTAINTY MR CLINTON OUTLINED SEVERAL STEPS TO SPEED AID TO MOSCOW AS REFORM CONTINUES HE SAID THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND THE GROUP OF SEVEN MAJOR INDUSTRIAL NATIONS ARE PREPARED TO CARRY THROUGH ON EARLIER PROMISES OF AID AS QUICKLY AS THE REFORMS PERMIT MR CLINTON GAVE SOME DETAILS OF PREVIOUSLY ANNOUNCED PLANS TO SUPPORT EQUITY INVESTMENTS IN NEWLY PRIVATIZED RUSSIAN BUSINESSES SINCE THE ELECTIONS BOTH WASHINGTON AND MOSCOW HAVE BEGUN TO PAY MORE ATTENTION TO BOLSTERING SOCIALSUPPORT PROGRAMS PARTICULARLY UNEMPLOYMENT AND RETRAINING BENEFITS FOR WORKERS IN INEFFICIENT INDUSTRIES THAT MUST BE CLOSED MR CLINTON SAID THE DISCUSSIONS FOCUSED ON THE SPECIFIC THINGS WE CAN DO TO KEEP THE ECONOMIC REFORM GOING IN RUSSIA AND TO HELP THE RUSSIAN PEOPLE TO REALIZE THE BENEFITS OF THE COURAGEOUS CHANGES THAT HAVE BEEN GOING ON THE US EMBRACE OF BORIS YELTSIN AND HIS POLICIES IS BASED ON THE CALCULATION THAT HE HAS THE BEST CHANCE OF LEADING RUSSIA TOWARD FREE MARKETS AND ULTIMATELY STRONG DEMOCRATIC INSTITUTIONS THAT'S ONE OF THE REASONS US OFFICIALS WERE SO PLEASED BY THE REAPPOINTMENT OF MR CHUBAIS AS PRIVATIZATION CHIEF UNDER HIS LEADERSHIP ABOUT 70 OF THE NATION'S SHOPS HOTELS AND OTHER SMALL ENTERPRISES HAVE BEEN TAKEN OVER BY PRIVATE OWNERS ABOUT 40 OF THE WORKERS IN HEAVIER INDUSTRIES ALSO WORK FOR PRIVATE COMPANIES NOW US OFFICIALS BELIEVE THESE CHANGES ARE IRREVERSIBLE BOTH US AND RUSSIAN OFFICIALS HOPE THAT THE POLICIES WILL ATTRACT MORE FOREIGN INVESTMENT TO THE FORMER SOVIET UNION YESTERDAY MR BENTSEN AND SECRETARY OF STATE WARREN CHRISTOPHER ATTENDED THE FIRST MEETING OF THE NEWLY FORMED AMERICAN CHAMBER OF COMMERCE IN MOSCOW SEVERAL OF THE BANKERS OIL EXECUTIVES AND OTHERS WHO SPOKE AT THE MEETING STRESSED HOW HARD IT WAS TO DO BUSINESS IN RUSSIA LAWS CHANGE BUREAUCRATS ARE RIGID AND UNCERTAINTY REIGNS THEY SAID THE US PASTOR WHO SAID GRACE EVEN HIT THE THEME DO NOT LET US LOSE HOPE HE PRAYED 9401140111 940107 QUARTERLY MUTUAL FUNDS REVIEW MONEY MARKET YIELDS ARE LIKELY TO RISE BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL THINGS FINALLY MAY BE LOOKING UP FOR INVESTORS IN MONEY MARKET MUTUAL FUNDS YIELDS ARE EXPECTED TO RISE OVER THE NEXT FEW MONTHS REVERSING A SLIDE THAT HAS LASTED NEARLY FIVE YEARS ALTHOUGH THE INCREASE IS LIKELY TO BE SMALL FUND MANAGERS EXPECT TO ONCE AGAIN SEE BIG INFLOWS OF CASH AS INVESTORS SEEK THE SAFETY AND LIQUIDITY OF MONEY FUNDS THE MONEY MARKET'S DAY IN THE SUN IS RETURNING SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF BOSTONBASED MUTUALFUND GIANT FIDELITY INVESTMENTS IT'S NOT A YIELD PLAY IT'S AN UNCERTAINTY PLAY MR LITVACK AND OTHERS IN THE FUND INDUSTRY REASON THAT INVESTORS WILL GET NERVOUS AS RISING INTEREST RATES PUSH DOWN BOND PRICES AND THE NET ASSET VALUE OF THEIR BONDFUND SHARES THERE'S ALSO THE POSSIBILITY OF A DECLINE IN THE STOCK MARKET WHICH REACHED RECORD HIGHS IN 1993 COMPETITIVELY MONEY FUNDS WILL LOOK A LITTLE BETTER SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER SECURITY WILL ONCE MORE BE AN ISSUE MONEY FUNDS ARE CONSIDERED AMONG THE MOST STABLE INVESTMENTS THEY'RE DESIGNED SO NET ASSET VALUE REMAINS AT 1 PER SHARE AND ONLY THE YIELD FLUCTUATES FUNDS GENERALLY PERMIT CHECK WRITING SO ASSETS ARE COMPLETELY LIQUID WHEN AND IF THERE IS A STOCK MARKET CORRECTION YOU'LL HAVE OPPORTUNITIES YOU CAN TAKE ADVANTAGE OF SAYS JOSEPH DIMARTINO PRESIDENT OF DREYFUS CORP IN NEW YORK SOME CASH STARTED TRICKLING INTO MONEY FUNDS AT THE END OF THE FOURTH QUARTER ASSETS OF TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS WERE 30713 BILLION AT YEAR END ACCORDING TO MONEY FUND REPORT COMPARED WITH 30549 BILLION THREE MONTHS EARLIER ASSETS WERE 30931 BILLION AT THE END OF 1992 WHEN FEWER FUNDS REPORTED TO THE WEEKLY NEWSLETTER YIELDS INCHED UP DURING THE LATEST QUARTER THE AVERAGE YIELD ON TAXABLE FUNDS OPEN TO INDIVIDUALS WAS 258 IN THE FOURTH QUARTER UP FROM 255 IN THE THIRD QUARTER PORTFOLIO MANAGERS INDICATED THEY EXPECT FURTHER INCREASES THE AVERAGE MATURITY OF ALL TAXABLE FUNDS' INVESTMENTS SHORTENED TO 57 DAYS IN THE LAST WEEK OF DECEMBER FROM 63 DAYS IN SEPTEMBER STILL THEY DON'T EXPECT SIGNIFICANT MOVES SOON ROBERT F AUWAERTER VICE PRESIDENT OF VANGUARD GROUP IN VALLEY FORGE PA FOR INSTANCE THINKS THE FEDERAL RESERVE WILL PUSH UP SHORTTERM INTEREST RATES A QUARTER TO HALF A PERCENTAGE POINT IN THE NEXT SIX MONTHS AND MONEY FUND YIELDS WILL FOLLOW WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT THINKS AN INCREASE OF A QUARTER PERCENTAGE POINT IS POSSIBLE DURING THE FIRST THREE MONTHS OF THIS YEAR STILL THAT STILL LEAVES RATES VERY LOW HE NOTES IT DOESN'T DO MUCH FOR INVESTORS FOR NOW INVESTORS CAN DO BETTER WITH TAXEXEMPT MONEY MARKET FUNDS THE AVERAGE COMPOUND YIELD ON TAXFREE FUNDS WHICH ASSUMES REINVESTMENT OF DIVIDENDS WAS 236 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT FOR AN INVESTOR IN THE TOP 396 FEDERAL TAX BRACKET THAT'S EQUIVALENT TO A TAXABLE 391 MEANWHILE THE COMPARABLE AVERAGE ON ALL TAXABLE FUNDS WHICH INCLUDES FUNDS OPEN TO INSTITUTIONS WAS 278 THE SPREAD OR DIFFERENCE IS EVEN GREATER FOR INVESTORS IN HIGHTAX STATES SUCH AS NEW YORK AND CALIFORNIA WHO INVEST IN TAXEXEMPT FUNDS THAT BUY SECURITIES ONLY FROM THAT STATE IT'S AN OBVIOUS PLACE TO PICK UP INCOME THAT A LOT OF PEOPLE DON'T TAKE ADVANTAGE OF SAYS MR LITVACK HE ESTIMATES THAT ONLY 25 OF THE PEOPLE WHO COULD BENEFIT FROM TAXFREE HOLDINGS BUY TAXEXEMPT INVESTMENTS THE SECURITIES AND EXCHANGE COMMISSION HAS MOVED TO TIGHTEN RESTRICTIONS ON TAXFREE MONEY FUNDS TO MATCH THE TOUGH RESTRICTIONS IT IMPOSED ON TAXABLE FUNDS IN JUNE 1991 UNDER PROPOSED RULES NATIONAL TAXEXEMPT FUNDS WOULD BE LIMITED TO A MAXIMUM 5 OF THEIR ASSETS IN SECURITIES OF A SINGLE ISSUER THE SAME LIMIT IMPOSED ON TAXABLE FUNDS STATESPECIFIC FUNDS WOULDN'T BE SUBJECT TO THE 5 LIMIT BUT WOULD BE REQUIRED TO MAKE ADDITIONAL DISCLOSURES IN THEIR PROSPECTUSES ABOUT RISKS ASSOCIATED WITH LACK OF DIVERSIFICATION STATESPECIFIC FUNDS ALSO WOULDN'T BE ALLOWED TO BUY LESS THAN TOPRATED SECURITIES THE SEC PROPOSAL ALSO FORMALIZES SOME RESTRICTIONS PREVIOUSLY ISSUED IN A LETTER FROM THE DIRECTOR OF THE DIVISION OF INVESTMENT MANAGEMENT AND INCLUDES A NUMBER OF TECHNICAL PROVISIONS IT IS OPEN FOR PUBLIC COMMENT UNTIL APRIL 6 AFTER WHICH THE STAFF WILL DRAFT A FINAL PROPOSAL FOR CONSIDERATION BY THE FULL COMMISSION ALTHOUGH NO TAXFREE FUND HAS EVER BROKEN THE BUCK OR HAD ITS NET ASSET VALUE FALL BELOW 1 A SHARE WE WANT TO REDUCE THE LIKELIHOOD THAT THERE WILL BE A PROBLEM SAYS ROBERT PLAZE ASSISTANT DIRECTOR OF THE SEC'S DIVISION OF INVESTMENT MANAGEMENT A LOOK AT CONSUMERORIENTED MONEY FUNDS SOME OF THEIR HOLDINGS AND THE AVERAGE MATURITY OF THEIR INVESTMENTS AT THE END OF THE FOURTH QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUND'S INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIALPURPOSE FUNDS AND TAXEXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES 9401140110 940114 NEWS CORP'S STAR REPORTS GROWING PANASIA AUDIENCE BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG NEWS CORP'S STAR TV REPORTED A BIG INCREASE IN HOUSEHOLDS RECEIVING ITS PANASIA SATELLITETELEVISION SERVICE GARY DAVEY THE NEWLY APPOINTED CHIEF EXECUTIVE OF STAR SAID THE RESULTS OF THE NETWORK'S LATEST VIEWER STUDY SHOW THE NUMBER OF HOMES RECEIVING AT LEAST ONE OF STAR'S CHANNELS IN A 13COUNTRY SAMPLING OF ITS VIEWERS MORE THAN TRIPLED ACCORDING TO THE SURVEY CONDUCTED FOR STAR BY MARKET RESEARCH FIRM FRANK SMALL & ASSOCIATES ONE OR MORE STAR CHANNELS COULD BE SEEN IN 42 MILLION HOMES AS OF NOVEMBER UP FROM 112 MILLION IN JANUARY THE LATEST STUDY WAS CARRIED OUT IN 13 OF THE 53 COUNTRIES IN THE NETWORK'S BROADCAST REACH FROM ISRAEL TO JAPAN THE RESULTS WERE WELCOME NEWS FOR STAR WHICH PEOPLE CLOSE TO NEWS CORP SAY HAS BEEN THE OBJECT OF A POWER STRUGGLE BETWEEN FOX INC AND BRITISH SKY BROADCASTING BOTH CONTROLLED BY NEWS CORP LAST MONTH JAMES F GRIFFITHS CHOSEN TO RUN STAR BY NEWS CORP CHAIRMAN RUPERT MURDOCH WAS REMOVED FROM HIS POST BY BSKYB CHAIRMAN SAM CHISHOLM AFTER FIVE MONTHS ON THE JOB MR GRIFFITHS SINCE WAS NAMED A SENIOR VICE PRESIDENT AT FOX INC LAST WEEKEND MR DAVEY A PROTEGE OF MR CHISHOLM WHO IS CREDITED WIDELY WITH HELPING TURN AROUND BSKYB SUCCEEDED MR GRIFFITH THE SURVEY RESULTS SHOW THE NUMBER OF STAR'S VIEWERS IN CHINA GREW DRAMATICALLY OVER THE 10 MONTHS DESPITE AN EDICT ISSUED IN OCTOBER BY BEIJING THAT SOUGHT TO LIMIT THE RECEPTION BY CHINESE CITIZENS OF UNCENSORED FOREIGN BROADCASTS THAT DIRECTIVE WAS INTERPRETED WIDELY AS A SLAP AT NEWS CORP ACCORDING TO THE SURVEY THE NUMBER OF HOMES ABLE TO RECEIVE STAR IN CHINA STANDS AT 305 MILLION MORE THAN A SIXFOLD INCREASE STAR'S LATEST STUDY WAS SCHEDULED TO BE RELEASED IN EARLY DECEMBER BUT STAR SUSPENDED THE FIELD WORK IN CHINA FOR ABOUT A MONTH FOLLOWING BEIJING'S EDICT THE FIELD WORK WAS CONDUCTED BY THE CHINESE STATE STATISTICAL BUREAU UNDER CONTRACT FROM FRANK SMALL THE NEW FIGURES DON'T OFFER A DETAILED LOOK AT STAR'S VIEWER HABITS SUCH AS HOW LONG THEY WATCH OR WHAT PROGRAMS THEY FAVOR MR DAVEY SAID STUDIES LATER IN THE YEAR WOULD OFFER MORE PRECISE DATA IN INDIA STAR'S SECONDLARGEST MARKET THE BROADCASTER'S PENETRATION MORE THAN DOUBLED TO 73 MILLION TAIWAN WHERE THE NUMBER OF VIEWER HOMES ROSE 20 TO 230000 REMAINS STAR'S THIRDLARGEST MARKET THAI VIEWER HOMES MORE THAN QUADRUPLED TO 142000 IN THE MIDDLE EAST WHERE STAR IS RECEIVED IN MORE THAN ONE MILLION HOMES PENETRATION MORE THAN DOUBLED GROWTH IN PERCENTAGE TERMS WAS GREATEST IN SOUTH KOREA WHICH JUMPED MORE THAN NINE TIMES TO 183838 HOMES BUT VIEWERSHIP THERE WAS MEASURED OVER A LONGER PERIOD JUNE 1992 THROUGH NOVEMBER 9401140109 940114 SURVEY SKETCHES NEW PORTRAIT OF THE MENTALLY ILL BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MENTAL ILLNESS IN AMERICA IS HEAVILY CONCENTRATED AMONG 14 OF THE NATION'S POPULATION WHO HAVE THREE OR MORE LIFETIME BRUSHES WITH DEPRESSION ALCOHOLISM OR OTHER PSYCHIATRIC DISORDERS THAT FINDING CENTRAL TO THE BATTLE OVER HEALTHCARE REFORM COMES FROM A LANDMARK GOVERNMENT CENSUS OF THE NATION'S MENTAL HEALTH THE GOVERNMENT SENT A TEAM OF RESEARCHERS TO DO SOMETHING NO ONE HAD EVER DONE BEFORE INTERVIEW A LARGE NATIONAL SAMPLE OF AMERICANS ABOUT THEIR EXPERIENCE WITH EVERY MAJOR MENTAL DISORDER THE SURVEY ALSO FOUND THAT NEARLY HALF OF ALL AMERICANS EXPERIENCE A PSYCHIATRIC DISORDER AT LEAST ONCE IN THEIR LIFETIME FAR HIGHER THAN PREVIOUS ESTIMATES BUT THE SURVEY USING THE AMERICAN PSYCHIATRIC ASSOCIATION'S DEFINITIONS OF DISORDER INCLUDES FUNCTIONAL CASES OF MILD DEPRESSION ANXIETY AND OTHER CONDITIONS THAT OFTEN DO NOT REQUIRE PROFESSIONAL CARE THE 14 GROUP NEVER BEFORE IDENTIFIED OR DESCRIBED COULD OFFER A MIDDLE GROUND IN THE POLICY DEBATE BETWEEN ADVOCATES WHO BRANDISH FAR HIGHER NUMBERS AND CYNICS WHO DISMISS MUCH MENTAL ILLNESS AS LATE20THCENTURY MALAISE THE PEOPLE THAT CLEARLY NEED HELP ARE THOSE WHO HAVE THAT PILEUP OF PROBLEMS SAYS RONALD KESSLER THE UNIVERSITY OF MICHIGAN SURVEY RESEARCHER WHO LED THE THREEYEAR STUDY THE TRICK FOR THE FUTURE IS TO FIGURE OUT WHO ARE THE PEOPLE AT RISK FOR THAT PILEUP AND TO DEVELOP EARLY INTERVENTION THE SURVEY FUNDED BY THE US GOVERNMENT OFFERS A VIVID PICTURE OF THE PEOPLE IN THE ILLSTARRED 14 GROUP THEY ARE MOST LIKELY TO BE LOWINCOME LOWEDUCATED CITYDWELLING WHITE WOMEN IN THEIR 20S AND 30S IN AN INTERVIEW MR KESSLER OUTLINES ONE COMMON LIFE STORY OF THE PILEUP GROUP A SCHOOLGIRL WITH ANXIETY DISORDER SEEKS TO EASE HER PAIN BY ABUSING DRUGS IN HER 20S HER LIFE IN GROWING DISARRAY SHE PLUNGES INTO DEPRESSION THE SCENARIO'S DETAILS VARY BUT BY THE TIME YOU'RE IN EARLY MIDLIFE YOU HAVE SOMETHING HAVING TO DO WITH ANXIETY SOMETHING HAVING TO DO WITH DEPRESSION AND SOMETHING HAVING TO DO WITH SUBSTANCE ABUSE HE SAYS ONE EYEPOPPING STATISTIC IN THE SURVEY IN A GIVEN YEAR THE 14 GROUP ACCOUNTS FOR 89 OF ALL CASES OF THE MOST SEVERE PSYCHIATRIC DISORDERS SUCH AS SCHIZOPHRENIA AND MANIC DEPRESSION THE REPORT PUBLISHED IN THE JANUARY ISSUE OF THE ARCHIVES OF GENERAL PSYCHIATRY CONFIRMS SEVERAL FACTS ABOUT MENTAL ILLNESS LONG SUSPECTED OR ESTIMATED BASED ON WEAKER DATA DEPRESSION AND OTHER MOOD DISORDERS ARE MORE COMMON AMONG WOMEN 24 HAVE AT LEAST ONE LIFETIME EPISODE COMPARED WITH 15 FOR MEN THE SAME IS TRUE OF ANXIETY DISORDERS A 31 RATE FOR WOMEN COMPARED WITH 19 FOR MEN BUT MEN ARE FAR MORE LIKELY TO ABUSE OR BECOME ADDICTED TO DRUGS OR ALCOHOL AT LEAST ONCE IN THEIR LIFETIME 35 COMPARED WITH 18 FOR WOMEN MEN ARE ALSO MUCH MORE LIKELY TO HAVE ANTISOCIAL PERSONALITIES A DIAGNOSIS DESCRIBING PERSISTENT CRIMINAL OR DESTRUCTIVE BEHAVIOR 5 COMPARED WITH 1 FOR WOMEN THE REPORT PAINTS A BLEAK PICTURE OF SUBSTANCE ABUSE IN AMERICA WITH SHARPLY HIGHER RATES THAN EARLIER SURVEYS MR KESSLER CAUTIONS THAT THE REPORTS OF ABUSE INCLUDE RAMBUNCTIOUS TEENAGERS WHO GO ON TO LEAD HEALTHY ADULT LIVES BUT 11 OF ALL MEN REPORTED A DEPENDENCE ON ALCOHOL IN THE YEAR PRECEDING THE SURVEY FOUR PERCENT REPORTED DRUG DEPENDENCE MR KESSLER SAYS THE TWO GROUPS HAVE A BIG OVERLAP THE NEW DATA SUPPORT THE BELIEF THAT MENTAL ILLNESS BECOMES MORE COMMON AS INCOME AND EDUCATION LEVELS DROP A MORE SURPRISING FINDING AMERICANS BETWEEN THE AGES OF 25 AND 34 ARE MORE LIKELY THAN ANY OTHER AGE GROUP TO HAVE SUFFERED A PSYCHIATRIC DISORDER SOMETIME IN THEIR LIVES MR KESSLER SAYS OTHER SURVEYS HAVE FOUND SIMILAR RESULTS IN PART BECAUSE MODERN YOUNG PEOPLE FACE INORDINATE STRESSES FROM DRUGS ALCOHOL AND FEARS ABOUT THE FUTURE THE SCARINESS OF WHAT MIGHT BE BAD IS A LOT WORSE THAN THE REALITY OF WHAT DID GO WRONG HE SAYS THE DATA ALSO FOUND MANY DIAGNOSES ARE SIGNIFICANTLY MORE WIDESPREAD AMONG WHITES THAN BLACKS BLACKS WERE 63 LESS LIKELY TO HAVE DEPRESSION OR ANOTHER MOOD DISORDER AND 35 LESS LIKELY TO HAVE A SUBSTANCEABUSE PROBLEM THOSE FINDINGS ECHO EARLIER SURVEYS THOUGH THE GAPS BETWEEN WHITES AND BLACKS DIDN'T PREVIOUSLY APPEAR TO BE SO WIDE OF PARTICULAR IMPORTANCE FOR HEALTHPOLICY MAKERS THE STUDY LOOKED AT HOW COMMONLY AMERICANS SEEK PROFESSIONAL HELP FOR MENTAL DISORDERS ONLY ABOUT 40 OF ALL THOSE WHO REPORTED ANY DISORDER SAID THEY OBTAINED PROFESSIONAL HELP OF COURSE WITH ANY MEDICAL PROBLEM ONLY A FRACTION OF PEOPLE WITH A COMPLAINT ACTUALLY TAKE THE TROUBLE TO CALL A DOCTOR MORE DISTURBINGLY ONLY SIX OUT OF 10 PEOPLE IN THE CRUCIAL 14 PILEUP GROUP WITH THREE OR MORE LIFETIME DISORDERS EVER RECEIVED TREATMENT AND OF ALL THE PEOPLE WITH THREE OR MORE DISORDERS DURING THE YEAR PRECEDING THE SURVEY ONLY A THIRD RECEIVED TREATMENT DURING THAT YEAR THESE RESULTS ARGUE FOR THE IMPORTANCE OF MORE OUTREACH AND MORE RESEARCH ON BARRIERS TO PROFESSIONAL HELPSEEKING MR KESSLER AND HIS COAUTHORS WRITE AN IMPORTANT UNANSWERED QUESTION IS THE EXTENT OF THOSE BARRIERS IN OTHER BRANCHES OF MEDICINE THE CLINTON ADMINISTRATION'S NATIONAL HEALTH PLAN HAS DRAWN CONTROVERSY BY SINGLING OUT MENTAL HEALTH FOR SPECIAL LIMITS IMPOSING CEILINGS ON HOSPITAL DAYS AND OUTPATIENT VISITS THAT DON'T APPLY TO ANY OTHER KIND OF CARE THUS FAR THE DEBATE OVER MENTALHEALTH CARE HAS DRAWN HEAVILY ON A SINGLE EPIDEMIOLOGICAL STUDY IN WHICH FIVE BIG UNIVERSITIES SENT RESEARCHERS INTO THEIR LOCAL NEIGHBORHOODS BETWEEN 1980 AND 1985 THE FEDERAL GOVERNMENT ADJUSTED THE FINDINGS TO TRY TO REFLECT THE ENTIRE NATIONAL POPULATION IN THE NEW STUDY MR KESSLER'S TEAM AT THE UNIVERSITY OF MICHIGAN SENT SURVEYORS ACROSS THE COUNTRY TO INTERVIEW A SAMPLE OF 8098 AMERICANS IN 34 STATES BETWEEN 1990 AND 1992 THE SURVEY GREW OUT OF A MANDATE BY CONGRESS TO STUDY THE CONCURRENCE OF SUBSTANCE ABUSE AND PSYCHIATRIC DISORDERS 9401140108 940114 SPORTS THE NHL PLOTS TO REJOIN THE BIG LEAGUES BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL HOCKEY LEAGUE IS COMING OUT OF THE ICE AGE WHILE OTHER PROFESSIONAL SPORTS LEAGUES GOT MULTIBILLIONDOLLAR TELEVISION CONTRACTS THE NHL WENT 14 YEARS BETWEEN GAMES ON NETWORK TV OTHER LEAGUES GENERATED 1 BILLIONPLUS IN ANNUAL LICENSING SALES THE NHL DID 10 OF THAT OTHER LEAGUES FOLLOWED US POPULATION GROWTH INTO THE SUN BELT THE NHL AS OF 1990 HAD ONE TEAM OUTSIDE THE FROST BELT BUT AS IT PREPARES FOR ITS BIG ALLSTAR GAME IN NEW YORK NEXT WEEK THE LEAGUE IS WELL INTO AN AGGRESSIVE NEW CAMPAIGN TO ATTRACT FANS AND CORPORATE SPONSORS THERE'S MORE UPSIDE TO HOCKEY RELATIVELY THAN ANY OTHER SPORT SAYS JOHN MCMULLEN OWNER OF THE NEW JERSEY DEVILS WE JUST NEEDED A MORE PROGRESSIVE TYPE OF LEADERSHIP THAT ARRIVED LAST FEBRUARY WHEN GARY BETTMAN MOVED ACROSS NEW YORK'S FIFTH AVENUE FROM THE NATIONAL BASKETBALL ASSOCIATION TO BECOME NHL COMMISSIONER A LONGTIME AIDE TO NBA COMMISSIONER DAVID STERN HE IS NOW TRYING TO INJECT SOME OF THE MARKETING SAVVY THAT DROVE THE BASKEBALL LEAGUE'S DRAMATIC RISE THE ALLSTAR GAME FESTIVITIES STARTING TODAY WITH THE OPENING OF A HALLOFFAME EXHIBIT IN GRAND CENTRAL STATION ILLUSTRATE IN A NUTSHELL THE NEWAGE NHL THE LEAGUE WILL PRESENT A WEEKLONG BLITZ OF HOCKEY ACTIVITIES IN AN EFFORT THAT MIRRORS ITS NATIONAL PROGRAM TO BROADEN PARTICIPATION AND INTEREST IN THE SPORT IT WILL ALSO SHOWCASE HOCKEY FOR A RARE NATIONAL TV AUDIENCE THIS IS A MISUNDERSTOOD GAME SAYS MR BETTMAN THESE ARE LIKABLE GOODLOOKING ATHLETES AND A FAST HARDHITTING SPORT IT'S JUST SUFFERED FROM UNDEREXPOSURE IT'S A PROBLEM OF THE NHL'S OWN MAKING FOR YEARS IT MAINLY CATERED TO RABID FANS IN THE HOCKEY HOTBEDS OF CANADA AND THE NORTHERN US THE TEAMS' CONSERVATIVE OWNERS WERE CONTENT TO PLAY TO 95 CAPACITY IN THEIR ARENAS AND TURN A MODEST PROFIT LEAGUE EFFORTS TO PUT EXPANSION TEAMS IN OTHER REGIONS WERE MOSTLY ABANDONED AS THE NHL REVERTED TO FAMILIAR TURF HOCKEY WAS TAGGED AS A REGIONAL SPORT AND COULDN'T GET A NETWORK TV CONTRACT THE SPORT MOSTLY RECEIVED NOTICE FOR ITS SPECTACULAR PLAYER BRAWLS REINFORCING ITS IMAGE AS A GAME PLAYED BY GAPTOOTHED GOONS FOR BLUECOLLAR BEER GUZZLERS I WENT TO A FIGHT THE JOKE WENT AND A HOCKEY GAME BROKE OUT IN 1985 THE NHL DID GET A THREEYEAR DEAL WITH ESPN THE ABC/CAPITAL CITIES INC UNIT BUT IN 1988 IT ABANDONED ESPN FOR SPORTSCHANNEL THE CABLEVISION SYSTEMS INC UNIT THE LEAGUE GOT MORE MONEY BUT SPORTSCHANNEL'S PROJECTED GROWTH DIDN'T MATERIALIZE AND IT HAD TO CRAWL BACK TO ESPN IN 1992 FOR A FIVESEASON 80 MILLION CONTRACT THE LEAGUE'S TROGLODYTES FINALLY STIRRED TV AND OTHER NONGATE REVENUE STARTED TO MATTER WHEN STARS LIKE WAYNE GRETZKY AND MARIO LEMIEUX STARTED GETTING BIG CONTRACTS 43 MILLION OVER SEVEN YEARS FOR LEMIEUX AND THE AVERAGE PLAYER'S SALARY ROSE TOO ABOUT DOUBLING TO MORE THAN 500000 OVER THE PAST FOUR SEASONS HOCKEY WAS THE LAST SPORT TO SEE ITS SALARY STRUCTURE EXPLODE SAYS NEIL SMITH THE NEW YORK RANGERS' PRESIDENT IT NEEDED A PERSON WHO'S SHARP IN MARKETING WHO COULD GET SOURCES OF REVENUE TO KEEP PACE WITH THE PAY MR BETTMAN HAS AUGMENTED HIS OWN KNOWHOW WITH KEY HIRES STEPHEN J SOLOMON RECRUITED FROM ABC SPORTS AS THE NHL'S CHIEF OPERATING OFFICER IS IN TURN RECRUITING NEW CORPORATE SPONSORS HIS EMPHASIS THE BIG AUDIENCE OF 18TO34YEAROLDS WHO ARE DRAWN TO HOCKEY ACCORDING TO NIELSEN RATINGS FOR HOCKEY'S RARE NATIONAL TV APPEARANCES THE NHL HAS ALSO HIRED RICHARD DUDLEY FROM MAJOR LEAGUE BASEBALL PROPERTIES PRO SPORTS' TOPGROSSING LICENSING OUTLET TO HEAD NHL ENTERPRISES THE LOWEST AS RECENTLY AS 1990 WHEN BASEBALL GENERATED 15 BILLION IN LICENSED MERCHANDISE HOCKEY PRODUCED ONLY 150 MILLION THE NHL'S DRIVE TO DO MORE WITH LICENSING ACTUALLY PRECEDED MR BETTMAN IN 1992 AND 1993 THE HOTTEST LOGOS IN SPORTS LICENSING BELONGED TO THE SAN JOSE CALIF SHARKS AND THE ANAHEIM CALIF MIGHTY DUCKS RESPECTIVELY THE NHL'S LICENSEDGOODS SALES ROSE TO 800 MILLION IN 1993 ACCORDING TO SPORTING GOODS DEALER A TRADE PUBLICATION THE NHL'S BREAKOUT FROM THE FROST BELT ALSO PRECEDED MR BETTMAN THE SHARKS ARRIVED IN 1991 THE TAMPA BAY LIGHTNING IN 1992 AND THE MIGHTY DUCKS OWNED BY WALT DISNEY CO AND THE FLORIDA PANTHERS OWNED BY BLOCKBUSTER VIDEO CHIEF H WAYNE HUIZENGA IN 1993 BUT IT HAS BEEN LEFT TO MR BETTMAN TO TURN THOSE TOEHOLDS INTO WHAT HE CALLS A LASTING NATIONAL FOOTPRINT FOR THE NHL ONE PRIORITY IS A GRASSROOTS EFFORT TO CREATE YOUNG HOCKEY ENTHUSIASTS IN THE NEW TERRITORIES THE NHL IS SPONSORING STREETHOCKEY AND ROLLERHOCKEY LEAGUES IN EIGHT MARKETS AND PLANS TO ADD MORE YOU HAVE A HOOP IN EVERY DRIVEWAY BUT NOT ENOUGH KIDS PLAYING HOCKEY MR BETTMAN SAYS THE LEAGUE'S ALLSTAR WEEK BLITZ CALLED NEW YORK SKATES WILL ALSO BE BIG ON PARTICIPATION THE LEAGUE WILL STAGE FREE HOCKEY CLINICS IN ALL FIVE BOROUGHS ONE DAY IT WILL CLOSE OFF A BLOCK JUST OUTSIDE MADISON SQUARE GARDEN FOR A STREETHOCKEY FESTIVAL IT WILL ALLOW AVERAGE SKATERS ONTO A CENTRAL PARK RINK TO CRUISE THE ICE WITH RETIRED NHL GREATS AND IT WILL HAVE A LUNCHHOUR SHOOTOUT AT ROCKEFELLER CENTER ALLOWING ALL COMERS TO TEST THEIR SLAPSHOT SPEED THE ALLSTAR GAME ITSELF TO BE SHOWN ON NBC WILL BE PRODUCED BY THE NHL THE LEAGUE HAS IMPORTED CRAIG JANOFF THE DIRECTOR OF ABC'S MONDAY NIGHT FOOTBALL AND AN ALLSTAR CREW OF TECHNICIANS TO PUT TOGETHER A SLICK SHOW THERE WILL BE LOTS OF ICELEVEL CAMERAS TO ALLOW CLOSEUP SHOTS LOTS OF RINKSIDE MICROPHONES TO ENHANCE THE SOUNDS OF SHOTS AND SLAMS AND SOME BETWEENPERIOD FEATURES TO INTRODUCE TOPNOTCH BUT LITTLEKNOWN PLAYERS WE WANT TO STRIP AWAY THE HELMETS SAYS NHL BROADCAST CHIEF GLENN ADAMO 9401140107 940114 HOME BUILDERS SHOWED VIGOR IN 4TH QUARTER WITH ORDERS UP ANALYSTS SEE CONTRACTORS POSTING INCREASES IN EARNINGS BY CHRISTOPHER C WILLIAMS SPECIAL TO THE WALL STREET JOURNAL HOME BUILDERS ARE EXPECTED TO POST HIGHER EARNINGS FOR THE FOURTH QUARTER AS LARGE CONTRACTORS ENJOYING EASIER ACCESS TO CREDIT CONTINUED TO GAIN MARKET SHARE NEW ORDERS AND BACKLOG SHOULD BE UNIFORMLY HEALTHY AS WE BEGIN 1994 WITH FAVORABLE INTEREST RATES AND IMPROVING CONSUMER CONFIDENCE ANALYST BARBARA ALLEN OF DONALDSON LUFKIN & JENRETTE SECURITIES SAID A PERENNIAL BULL ON HOME BUILDERS SHE PREDICTED POWERFUL EARNINGS GAINS FROM BUILDERS AND SUPPLIERS MONTGOMERY SECURITIES ANALYST JAMES F WILSON SAID THAT ON AVERAGE QUARTERLY EARNINGS FOR THE COMPANIES HE COVERS SHOULD INCREASE 347 AND RECOMMENDS THAT INVESTORS STAY WEIGHTED IN THE HOUSING SECTOR WE MAY SEE STRONGERTHANEXPECTED ORDER RESULTS FROM A LOT OF COMPANIES MR WILSON SAID NOTING THAT RYLAND GROUP INC AND DR HORTON INC IN PARTICULAR ARE LIKELY TO REPORT STRONG ORDERS OPERATINGPROFIT MARGINS HOWEVER AREN'T EXPECTED TO BE MUCH BETTER THAN A YEAR EARLIER WITH THE RISING LUMBER COSTS EARNINGS FOR MANUFACTUREDHOUSING COMPANIES WHICH ACCORDING TO MERRILL LYNCH ANALYST ROBERT CURRAN CONTINUE IN A CYCLICAL UPSWING ALSO SHOULD BE STRONG MONTGOMERY'S MR WILSON SEES THE MANUFACTUREDHOUSING COMPANIES HE COVERS POSTING QUARTERLY EARNINGS UP 183 ACCORDING TO DONALDSON LUFKIN & JENRETTE'S MS ALLEN HOMECONSTRUCTION EARNINGS STRENGTH IN THE RECENT QUARTER SHOULD BE LED BY LENNAR CORP WITH AN ESTIMATED 80 GAIN AND PULTE CORP WITH AN ESTIMATED 40 TO 50 GAIN LENNAR SHOULD REPORT PROFIT BETWEEN 85 CENTS A SHARE AND 95 CENTS A SHARE FOR ITS FOURTH QUARTER ENDED NOV 30 COMPARED WITH 50 CENTS A YEAR EARLIER MS ALLEN SAID SHE NOTED THAT LENNAR'S ORDERS REMAINED COMFORTABLY AHEAD OF 1992 PULTE A NATIONAL BUILDER OF SINGLEFAMILY HOMES AND CONDOMINIUMS IS EXPECTED TO REPORT NET INCOME BETWEEN 80 CENTS A SHARE AND 90 CENTS A SHARE FOR THE FINAL QUARTER COMPARED WITH 61 CENTS A SHARE A YEAR EARLIER MS ALLEN SAID DALLASBASED CENTEX CORP IS EXPECTED TO REPORT EARNINGS ROSE TO AROUND 69 CENTS A SHARE FROM 55 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED DECEMBER DONALDSON LUFKIN & JENRETTE'S MS ALLEN PROJECTS EARNINGS BETWEEN 60 CENTS A SHARE AND 70 CENTS A SHARE CITING THE CONTINUED STRONG PERFORMANCE OF CENTEX'S MORTGAGEBANKING BUSINESS A SPOKESWOMAN SAID THE COMPANY EXPECTS TO REPORT EARNINGS AROUND 69 CENTS A SHARE FOR THE QUARTER ANALYSTS INCLUDING PAINEWEBBER INC'S JEFFREY SPRAGUE NOTED KAUFMAN & BROAD HOME CORP'S DECEMBER ORDERS WERE STRONGER THAN ANTICIPATED FOR THE FOURTH QUARTER ENDED NOV 30 ORDERS INCREASED 50 FROM A YEAR EARLIER MONTGOMERY SECURITIES' MR WILSON ESTIMATES ANALYSTS EXPECT THE LOS ANGELES HOME BUILDER TO REPORT EARNINGS AROUND 45 CENTS A SHARE FOR THE FINAL PERIOD THE COMPANY REPORTED PROFIT OF 41 CENTS A SHARE IN THE YEAREARLIER QUARTER DONALDSON LUFKIN & JENRETTE'S MS ALLEN SAID STANDARD PACIFIC CORP ANOTHER CALIFORNIA COMPANY CAN REPORT PROFIT OF FIVE CENTS A SHARE TO 10 CENTS A SHARE FOR THE FINAL QUARTER STANDARD PACIFIC REPORTED EARNINGS OF THREE CENTS A SHARE IN THE YEAREARLIER QUARTER AND 15 CENTS A SHARE FOR 1992 SHE SAID STANDARD PACIFIC'S ORDERS ROSE 50 IN OCTOBER AND 54 IN NOVEMBER WITH ONE LESS WEEK IN THE YEAROVERYEAR COMPARISON MONTGOMERY'S MR WILSON SEES RYLAND GROUP REPORTING A 53 EARNINGS INCREASE TO 40 CENTS A SHARE ORDERS FOR THE COMPANY MAY EXCEED HIS PROJECTION OF A 25 INCREASE FROM A YEAR EARLIER HE SAID MS ALLEN SAID SHE SEES THE COMPANY EARNING BETWEEN 30 CENTS AND 40 CENTS A SHARE FOR THE PERIOD AMONG SMALLERCAPITALIZATION COMPANIES DR HORTON IS EXPECTED TO SHOW A 50 INCREASE IN ORDERS FOR THE RECENTLY ENDED FISCAL FIRST QUARTER MR WILSON SAID AND A 95 INCREASE IN EARNINGS TO 23 CENTS A SHARE MS ALLEN SAID EARNINGS FOR HORTON ARE LIKELY TO BE FLAT WHILE OCTOBER AND NOVEMBER ORDERS WERE STRONG SHE SAID DELIVERIES WERE SLOWER THAN EXPECTED HORTON CITING STRONG SALES CONTRACTS IN OCTOBER AND NOVEMBER SAID IT WAS CONFIDENT IT COULD EXCEED ANALYSTS' ESTIMATES FOR FISCAL 1994 ENDING SEPTEMBER A ZACKS INVESTMENT RESEARCH POLL OF FIVE ANALYSTS PROJECTS YEAREND PROFIT OF 107 A SHARE ON THE MANUFACTUREDHOUSING SIDE MONTGOMERY'S MR WILSON SEES CLAYTON HOMES INC REPORTING A 333 INCREASE IN EARNINGS TO 23 CENTS A SHARE FOR THE FISCAL SECOND QUARTER ENDED DECEMBER OAKWOOD HOMES INC SHOULD REPORT 27 CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED DECEMBER A 29 INCREASE FROM THE YEAREARLIER 21 CENTS A SHARE HE SAID MS ALLEN SEES THE COMPANY REPORTING EARNINGS BETWEEN 24 CENTS A SHARE AND 27 CENTS A SHARE ONE REPORT SHOWS THE STRENGTH ANALYSTS EXPECTED HOVNANIAN ENTERPRISES INC POSTED EARNINGS OF 21 CENTS A SHARE FOR THE THIRD QUARTER ENDED NOV 30 COMPARED WITH NINE CENTS A SHARE A YEAR EARLIER THE MEAN ANALYSTS' ESTIMATE SURVEYED BY ZACKS WAS 29 CENTS A SHARE 9401140106 940114 MONEY MARKET MUTUAL FUNDS' ASSETS SURGED IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS JUMPED 1059 BILLION TO 59840 BILLION FROM A REVISED 58781 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS INCREASED BY 264 BILLION TO 40064 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 404 TAXABLE MONEY MARKET FUNDS ROSE BY 109 BILLION TO 30911 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS INCREASED BY 155 BILLION TO 9153 BILLION ASSETS OF THE 279 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 794 BILLION TO 19776 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 225 TAXABLE MONEY MARKET FUNDS INCREASED BY 794 BILLION TO 17455 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE 17 MILLION TO 2321 BILLION 9401140105 940114 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN IN A VICTORY FOR LUXURYGOODS MAKERS THE EUROPEAN UNION'S HIGHEST COURT SAID CARTIER SA COULD LIMIT GUARANTEES ON ITS WATCHES TO THOSE PURCHASED FROM ITS APPROVED DEALERS THE RULING ALSO BOOSTS OTHER SECTORS SUCH AS AUTO MAKERS IN MAINTAINING THE INTEGRITY OF THEIR DEALERSHIP SYSTEMS IN THE EU FORMERLY THE EUROPEAN COMMUNITY THE EUROPEAN COURT OF JUSTICE SAID GUARANTEES ARE INTEGRAL TO A SELECTIVE DISTRIBUTION SYSTEM FOR LUXURY GOODS THUS IT DECIDED CARTIER DIDN'T VIOLATE EU COMPETITION LAW BY REFUSING TO HONOR GUARANTEES ON WATCHES SOLD BY A GERMAN RETAILER OUTSIDE THE DEALERSHIP NETWORK BECAUSE THE NETWORK ITSELF DIDN'T VIOLATE EU ANTITRUST RULES RESIDENTIAL LAND PRICES IN JAPAN FELL IN 1993 MARKING THE THIRD CONSECUTIVE ANNUAL DECLINE BUT THE PACE OF THE DROP IN CITIES SLOWED MISAWA HOMES CO'S RESEARCH ARM SAID FOR EXAMPLE TOKYO AREA PRICES DECREASED 75 LAST DEC 1 COMPARED WITH A YEAREARLIER 145 DROP PRICES STILL REMAIN WELL ABOVE LEVELS PRIOR TO A SPECULATIVE SURGE IN THE LATE 1980S THE COMMERCIAL REAL ESTATE SUPPLY INCREASINGLY EXCEEDS DEMAND BUT RESIDENTIAL PRICES HAVE BENEFITED FROM LOW INTEREST RATES IN THE PAST 2 1/2 YEARS THAT ENCOURAGED PURCHASES ESPECIALLY BY FIRSTTIME BUYERS ATTACKS ON FOREIGNERS IN GERMANY LAST YEAR DROPPED 42 TO 1322 FROM A YEAR EARLIER THE GOVERNMENT SAID IN A PRELIMINARY REPORT OVERALL 1814 VIOLENT ATTACKS SUCH AS BY NEONAZIS WERE REGISTERED DOWN 30 FROM 1992 BUT UP 22 FROM 1991 DEATHS FROM EXTREMIST VIOLENCE IN 1993 DECLINED TO EIGHT FROM THE PREVIOUS YEAR'S 17 THOUGH EXTREMISM HAS BEEN BLAMED ON ROOTLESS YOUTHS FROM THE FORMERLY COMMUNIST EAST WESTERN GERMAN STATES HAD THE MOST ATTACKS REPORTED IN THE WAVE OF VIOLENCE THAT BEGAN AFTER REUNIFICATION IN OCTOBER 1990 RUSSIA'S LIBERALIZATION OF PRICES HELPED RAISE THEM TO 30 OF WORLD LEVELS AT THE END OF LAST YEAR FROM 13 A YEAR EARLIER GOVERNMENT PRICE CONTROLS AND HEAVY SUBSIDIES HAD KEPT PRICES WELL BELOW WORLD MARKET LEVELS THE REPORT BY THE GOVERNMENT'S WORKING CENTER FOR ECONOMIC REFORM USED US PRICES AS A BENCHMARK FOR WORLD LEVELS RUSSIA'S GRADUAL LIFTING OF MANY OF ITS CONTROLS HAS ALLOWED THE MARKET TO ADJUST THIS HAS WON PRAISE FROM MANY ECONOMISTS BUT ALSO HAS CONTRIBUTED TO WORRISOME INFLATION IN RUSSIA SINGAPORE'S GROSS DOMESTIC PRODUCT EXPANDED A PRELIMINARY 98 LAST YEAR A BLISTERING PACE COMPARED WITH 58 GROWTH IN 1992 THE CITYSTATE'S ECONOMIC PERFORMANCE ONE OF THE BEST IN ASIA WAS DRIVEN BY FINANCIAL SERVICES AND MANUFACTURING SINGAPORE'S STOCK EXCHANGE RALLIED LAST YEAR THE FUTURES EXCHANGE POSTED RECORD VOLUMES AND THE FOREIGNEXCHANGE TRADING CENTER IS THE WORLD'S FOURTH LARGEST MANUFACTURING IS DOMINATED BY COMPUTER PERIPHERALS AND OIL PROCESSING ELECTRONICS OUTPUT GREW AT LEAST 25 A QUARTER IN THE PAST YEAR THE CZECH GOVERNMENT DRAFTED LEGISLATION TO RETURN CONFISCATED JEWISH PROPERTY SUCH AS SYNAGOGUES AND CEMETERIES TO THE REPUBLIC'S JEWISH COMMUNITY WHICH HAS SHRUNK TO ABOUT 3000 MEMBERS FROM 118000 BEFORE WORLD WAR II JEWISH LEADERS HAVE COMPLAINED OF GOVERNMENT INDIFFERENCE TO THEIR DEMANDS FOR THE PROPERTY SEIZED BY NAZI GERMANY AND FORMER CZECHOSLOVAKIA'S POSTWAR COMMUNIST GOVERNMENTS NAZI SEIZURES BEGAN IN 1939 AND CZECH RESTITUTION LAWS COVER ONLY THE PERIOD FROM THE 1948 TAKEOVER THE GOVERNMENT SAID IT DOESN'T CONSIDER THE BILL TO BE INTRODUCED IN PARLIAMENT AS RESTITUTION CHINA BLOCKED CONSTRUCTION OF GOLF COURSES HORSERACING TRACKS AND OTHER LUXURY LEISURE PROJECTS THAT CATER TO INCREASINGLY CONSPICUOUS AFFLUENCE IN CHINA'S LATEST BID TO CURB FRENZIED DEVELOPMENT THE CHINA DAILY SAID THE FOUR NO'S CAMPAIGN DENIES PERMITS PLANNING LICENSES LAND ALLOCATION AND LENDING THIS INDICATED THAT A GOVERNMENT MORATORIUM LAST SPRING AND A FREEZE ON LUXURYPROJECT LENDING IN A FINANCIAL CLAMPDOWN LAST SUMMER HAVE FAILED TO COOL DEVELOPERS' ARDOR TO CASH IN ON NEWLY LAVISH LIFE STYLES SCORNED BY COMMUNIST HARDLINERS GOLF COURSES WERE ALLOWED IN THE 1980S TO WOO FOREIGN INVESTORS BUT THE GOVERNMENT UNDERESTIMATED THEIR ALLURE AT LEAST 20 ARE UNDER CONSTRUCTION THE LUXURYPROPERTY BOOM ALSO HAS BEEN TARGETED IN CHINA'S ANTICORRUPTION CAMPAIGN OFFICIALS SAID MANY PROJECTS HAVE BEEN FINANCED ILLEGALLY FROM LOCAL GOVERNMENT REVENUES CHINA CITING AN ACUTE SHORTAGE OF ARABLE LAND AND LIMITED FINANCIAL RESOURCES SAID THAT EVERY INCH OF LAND SHOULD GUARANTEE THE INTERESTS OF THE STATE JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA PLANS TO APPOINT HISAKO TAKAHASHI 66 YEARS OLD TO THE SUPREME COURT NEXT MONTH MAKING THE FORMER LABOR MINISTRY OFFICIAL THE FIRST WOMAN EVER TO SERVE ON THE 15MEMBER COURT A STRIKE BY BANGLADESH'S 8000 GOVERNMENT DOCTORS CRIPPLED SUBSIDIZED MEDICAL SERVICES RELIED UPON BY MOST PEOPLE IN THE COUNTRY THE PHYSICIANS WANT INCREASES IN PAY AND HEALTHCARE SPENDING 9401140104 940114 SCHWAB STOCK FALLS 56 AMID CONCERNS OVER 4THQUARTER NET SAN FRANCISCO DISCOUNT BROKERAGE FIRM CHARLES SCHWAB CORP REPORTED STRONG REVENUE GAINS BUT SLOWER NETINCOME GROWTH RAISED CONCERN AMONG SOME INVESTORS AND THE FIRM'S STOCK DECLINED 56 FOR THE FOURTH QUARTER SCHWAB'S NET INCOME ROSE 13 TO 29 MILLION OR 48 CENTS A SHARE COMPARED WITH NET INCOME OF 25 MILLION OR 44 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 33 TO 258 MILLION FROM 194 MILLION WHILE THE COMPANY'S EARNINGS CAME NEAR OR JUST BELOW EXPECTATIONS ANALYSTS ARE CONCERNED THAT RISING EXPENSES ARE SAPPING NET INCOME GROWTH NANCY ZAMBELL AN ANALYST WITH JW CHARLES/CSG SAID SCHWAB HAD A 42 INCREASE IN COMPENSATION AND A 43 INCREASE IN OVERALL EXPENSES IN THE FOURTH QUARTER MORE WORRISOME SHE ADDED WAS SCHWAB'S DECLINE IN EARNINGS BEFORE INCOME TAXES WHICH DIPPED TO 452 MILLION FROM 453 MILLION IN THE YEAREARLIER PERIOD I'M NOT SURPRISED MS ZAMBELL SAID OF THE DECLINE IN SCHWAB'S STOCK THIS IS JUST A PICTURE OF WHAT'S GOING TO HAPPEN TO THE BROKERAGE HOUSES SHORTLY SINCE SCHWAB ISN'T AS DIVERSIFIED AS OTHER FIRMS THEY'RE MORE LIKELY TO GET HIT FIRST IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SCHWAB FELL 175 OR 56 TO 2975 A SHARE FOR THE YEAR SCHWAB'S NET INCOME ROSE 45 TO 118 MILLION OR 198 A SHARE COMPARED WITH 81 MILLION OR 139 A SHARE IN 1992 REVENUE INCREASED 29 IN 1993 TO 965 MILLION FROM 750 MILLION A YEAR EARLIER SCHWAB'S TRADING VOLUME DECLINED 11 IN DECEMBER COMPARED WITH AN UNUSUALLY STRONG PERFORMANCE IN NOVEMBER SCHWAB MADE AN AVERAGE 386 THOUSAND TRADES A DAY IN DECEMBER DOWN FROM 431 THOUSAND TRADES A DAY IN NOVEMBER MEANWHILE COMBINED TRADING VOLUME ON THE BIG BOARD AND THE NASDAQ STOCK MARKET DECLINED ABOUT 5 FOR THE YEAR SCHWAB REPORTED A 29 JUMP IN DAILY TRADING VOLUME SCHWAB ALSO INCREASED ITS QUARTERLY CASH DIVIDEND TO SEVEN CENTS A SHARE FROM FIVE CENTS A SHARE PAYABLE FEB 15 TO SHAREHOLDERS OF RECORD FEB 1 9401140103 940114 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 244812 METRIC TONS IN THE WEEK ENDED SATURDAY AN 11 INCREASE FROM 221558 TONS THE PREVIOUS WEEK AND A 53 INCREASE FROM 232493 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS 9401140102 940114 THE AMERICAS PUERTO RICO LEADING THE WAY IN SCHOOL CHOICE BY CLINT BOLICK TWO YEARS AGO ERWIN DUCHENSE FELT COMPELLED TO MAKE THE FINANCIAL SACRIFICE TO SEND HIS SON THEN AGE 12 TO A CATHOLIC SCHOOL IN SAN JUAN PUERTO RICO LIKE MANY OTHER LOWINCOME FAMILIES IN THE COMMONWEALTH THE DUCHENSES COULD NO LONGER RISK CHRISTIAN'S SAFETY BY SENDING HIM TO A VIOLENCEPRONE NEIGHBORHOOD PUBLIC SCHOOL EVEN IF THAT MEANT DRAINING THEIR PRECIOUS SAVINGS THIS SCHOOL YEAR HOWEVER CHRISTIAN'S FAMILY WAS SPARED AN EXPENSE THEY COULD ILL AFFORD AS CHRISTIAN SWITCHED TO A MUCH SAFER PUBLIC SCHOOL LAST YEAR 13YEAROLD OLGA RODRIGUEZMORALES WAS ARBITRARILY ASSIGNED TO A NEIGHBORHOOD PUBLIC SCHOOL UNABLE TO ACCOMMODATE HER SPECIAL EDUCATION NEEDS BUT INSTEAD OF BEING FORCED TO ACCEPT THE BUREAUCRATIC EDICT OLGA'S MOTHER WAS ABLE TO ENROLL THE GIRL IN A DIFFERENT PUBLIC SCHOOL THAT HAS PRECISELY THE PROGRAM SHE NEEDS WHAT MADE OUTCOMES SUCH AS THESE POSSIBLE FOR HUNDREDS OF LOWINCOME PUERTO RICAN YOUNGSTERS WERE SCHOOL VOUCHERS FULFILLING A CAMPAIGN PLEDGE THAT HELPED PROPEL HIM TO OFFICE IN 1992 PUERTO RICO GOV PEDRO ROSSELLO LAST SEPTEMBER SIGNED A LAW CREATING THE SECOND SCHOOL VOUCHER PROGRAM COVERING US CITIZENS LIKE THE FIRST VOUCHER SYSTEM IN MILWAUKEE PUERTO RICO'S IS DESIGNED TO EXPAND EDUCATIONAL OPPORTUNITIES FOR LOWINCOME YOUNGSTERS BUT AS PART OF A MORE COMPREHENSIVE EFFORT THE PUERTO RICAN PROGRAM MAY PROVIDE A NATIONWIDE MODEL FOR US EDUCATIONAL REFORM FUNDED WITH 10 MILLION ALLOCATED FROM PRIVATIZATION OF THE ISLAND'S TELEPHONE COMPANY THE PROGRAM MAKES 1500 VOUCHERS AVAILABLE TO CHILDREN FROM FAMILIES WITH ANNUAL INCOMES OF LESS THAN 18000 WHO APPLY FOR THEM THIS YEAR THERE WERE ENOUGH VOUCHERS FOR ALL WHO APPLIED OVERWHELMINGLY FROM LOWERINCOME FAMILIES IN SUBSEQUENT YEARS THERE WILL BE A LOTTERY SYSTEM IF THE NUMBER OF APPLICANTS EXCEEDS THE NUMBER OF VOUCHERS AVAILABLE PUBLIC SCHOOL STUDENTS MAY APPLY THEIR VOUCHERS TOWARD PRIVATE SCHOOL TUITION THE MEDIAN COST OF WHICH IS LESS THAN 1700 BUT WHEREAS THE MILWAUKEE PROGRAM PROVIDES VOUCHERS ONLY TO STUDENTS TRANSFERRING FROM PUBLIC TO PRIVATE SCHOOLS PUERTO RICO MAKES ITS VOUCHERS TRANSPORTABLE BETWEEN PUBLIC SCHOOLS AND FROM PRIVATE TO PUBLIC SCHOOLS FOR STUDENTS USING THEM IN PUBLIC SCHOOLS THE VOUCHERS PROVIDE RESOURCES ON TOP OF THE FUNDS THE COMMONWEALTH ALREADY PROVIDES FOR EACH PUPIL THIS INNOVATION MARKS A MILESTONE IN EDUCATIONAL REFORM INSTEAD OF MERELY FUNNELING EXTRA MONEY TO SCHOOLS WITH HIGH CONCENTRATIONS OF LOWINCOME STUDENTS THE VOUCHER GIVES SUCH YOUNGSTERS GREATER MOBILITY WHILE MAKING THEM ECONOMICALLY ATTRACTIVE TO SCHOOLS NO LONGER ABLE TO IGNORE LOWINCOME KIDS WHO PREVIOUSLY HAD NOWHERE ELSE TO GO SCHOOLS NOW COMPETE FOR THEM AND THE EXTRA RESOURCES THEY BRING MOTIVATIONS VARY WIDELY FOR THE CHOICES MADE BY PARENTS PUBLIC SCHOOL PARENTS ARE ATTRACTED TO DIFFERENT PUBLIC SCHOOLS' SPECIALIZED EDUCATIONAL OFFERINGS OR SAFER ENVIRONMENTS SOME PARENTS ARE SENDING THEIR CHILDREN TO PRIVATE SCHOOLS BECAUSE THEY HAVE STRONGER ACADEMIC OR DISCIPLINARY STANDARDS OR PLACE AN EMPHASIS ON VALUES STILL OTHERS ARE LEAVING PRIVATE FOR PUBLIC SCHOOLS NOW THAT THE VOUCHER ENABLES THEM TO CHOOSE OUTSIDE THEIR NEIGHBORHOODS ALL SCHOOLS NOW MUST TAKE THESE MOTIVATIONS INTO ACCOUNT IF THEY WANT TO SURVIVE ALREADY SOME ARE MAKING NECESSARY CHANGES AT GAETAN ELEMENTARY SCHOOL IN SAN JUAN FOR INSTANCE THE TEACHERPARENT COUNCIL PLANS TO OFFER FREE EXTRACURRICULAR COURSES IN MUSIC AND ART AND HOPES TO RAISE FUNDS FOR COMPUTER CLASSES THE SCHOOL'S PRINCIPAL SAYS THAT IF THE SCHOOL ATTRACTS VOUCHER STUDENTS THE ADDED FUNDS WILL BE USED TO PURCHASE MORE BOOKS AND EQUIPMENT BUT COMPETITION CAN'T WORK IF PUBLIC SCHOOLS LACK FREEDOM TO RESPOND THE MAIN PROBLEM IN PUERTO RICO EVEN MORE THAN ELSEWHERE IS A HUGE BUREAUCRACY ONE ADMINISTRATOR FOR EVERY TWO TEACHERS WHICH SIPHONS OFF PRECIOUS EDUCATION RESOURCES AND IS MORE RESPONSIVE TO POLITICAL AND SPECIALINTEREST PRESSURES THAN PARENTS' CONCERNS SO THE ROSSELLO ADMINISTRATION HAS MOVED TO DECENTRALIZE AND DEREGULATE PUBLIC SCHOOLS IT IS DOWNSIZING THE DEPARTMENT OF EDUCATION DISPATCHING BUREAUCRATS FROM THE MASSIVE 12STORY CENTRAL HEADQUARTERS TO CLASSROOM TEACHING POSITIONS TRIMMING THE ADMINISTRATIVE FAT WILL SAVE ENOUGH MONEY TO FUND THE CHOICE PROGRAM IN FUTURE YEARS AND THIS YEAR IT HAS TRANSFORMED 40 PUBLIC SCHOOLS INTO SELFGOVERNING COMMUNITY SCHOOLS AS A FIRST STEP IN WHAT EDUCATION SECRETARY JOSE ARSENIO TORRES CALLS THE GRINDING PROCESS OF BECOMING FREE MR TORRES PLANS TO CONVERT 200 MORE SCHOOLS OVER THE NEXT YEAR THE NEW COMMUNITY SCHOOLS ARE SO ATTRACTIVE THAT IN THE FIRST YEAR OF THE CHOICE PROGRAM MORE VOUCHER STUDENTS TRANSFERRED FROM PRIVATE TO PUBLIC SCHOOLS THAN FROM PUBLIC TO PRIVATE OF 1809 VOUCHERS AWARDED 1181 WERE USED TO TRANSFER FROM ONE PUBLIC SCHOOL TO ANOTHER 317 WERE USED TO MOVE FROM PRIVATE TO PUBLIC SCHOOLS AND ONLY 311 TO SHIFT FROM PUBLIC TO PRIVATE SCHOOLS THESE STATISTICS DEBUNK A PRIME FALLACY PERPETRATED IN CALIFORNIA AND ELSEWHERE BY THE EDUCATION ESTABLISHMENT THAT VOUCHERS ARE THE DEATH KNELL FOR PUBLIC SCHOOLS ON THE CONTRARY PUBLIC SCHOOLS WILL SURVIVE AND THRIVE IF THEY OFFER A GOOD PRODUCT AND COMPETITION PROVIDES AN INCENTIVE TO DO JUST THAT PREDICTABLY ALTHOUGH PARENTS AND MANY TEACHERS ARE HAPPY WITH THE CHANGED ENVIRONMENT THE EDUCATION ESTABLISHMENT IS BITTERLY OPPOSED THE OPENING SALVO WAS A STRIKE BY THE TEACHER UNIONS PROTESTING THE ELIMINATION OF TENURE PROTECTIONS WITHIN COMMUNITY SCHOOLS WHICH ARE FREE TO HIRE AND FIRE THEIR OWN PERSONNEL THE STRIKE WAS SHUT DOWN BY LEGAL ACTION AFTER ONE DAY PARTICULARLY ANNOYING TO THE ANTIVOUCHER BLOCK IS THAT UNLIKE THE MILWAUKEE PROGRAM PUERTO RICO'S VOUCHER CAN BE USED IN RELIGIOUSLY AFFILIATED SCHOOLS A FEATURE THE PLAINTIFFS CONTEND RENDERS IT UNCONSTITUTIONAL A LAWSUIT FILED BY ONE OF THE TEACHER ASSOCIATIONS SUPPORTED BY THE AMERICAN CIVIL LIBERTIES UNION CLAIMS THAT THE PROGRAM INVOLVES THE COMMONWEALTH IN AN ENTERPRISE THAT PROMOTES RELIGIOUS ACTIVITY DOING VIOLENCE IN THIS WAY TO THE CONSTITUTIONAL SEPARATION OF CHURCH AND STATE WHILE THE LAWYERS BATTLE OVER THE PROGRAM'S FATE THE ROSSELLO ADMINISTRATION IS BUSILY APPLYING THE TONIC IT HOPES WILL IMPROVE A SCHOOL SYSTEM IN WHICH CURRENTLY LESS THAN HALF THE STUDENTS GRADUATE FOR A FEW THOUSAND LOWINCOME KIDS WHO BADLY NEED A DECENT EDUCATION THIS IS THE FIRST TONIC THAT'S NOT SNAKE OIL MR BOLICK IS LITIGATION DIRECTOR FOR THE INSTITUTE FOR JUSTICE IN WASHINGTON DC WHICH REPRESENTS PARENTS DEFENDING THE PUERTO RICO SCHOOL CHOICE PROGRAM 9401140101 940114 ECONOMY ALCAN ALUMINIUM CUTS PRODUCTION 9 IN THE FACE OF A GLUT IN WORLD MARKETS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL ALCAN ALUMINIUM LTD REACTING TO THE WORLDWIDE ALUMINUM GLUT SAID IT TEMPORARILY WILL CUT ABOUT 9 OF ITS PRODUCTION CAPACITY REDUCING ANNUAL OUTPUT BY 156000 METRIC TONS THE MOVE COMES AS US AND WESTERN EUROPEAN GOVERNMENTS CONTINUE TO PRESS RUSSIA TO CURB ALUMINUM EXPORTS THE LATEST ROUND OF MULTILATERAL TALKS IS TO TAKE PLACE IN BRUSSELS NEXT WEEK ALCAN'S MOVE FOLLOWS CUTBACKS DURING THE PAST SEVERAL MONTHS BY OTHER COMPANIES INCLUDING ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO BUT GLOBAL INVENTORIES HAVE CONTINUED TO MOUNT AS PRODUCERS IN THE FORMER SOVIET UNION FLOOD WORLD MARKETS THE SITUATION HAS REACHED CRISIS LEVELS AN ALCAN SPOKESMAN SAID IT'S TIME FOR US TO ACT ALCAN HAD RESISTED CUTTING CAPACITY SINCE 1992 THE MONTREALBASED COMPANY CLOSED 102000 METRIC TONS 112200 SHORT TONS OF CAPACITY IN 1991 AND 1992 TOGETHER WITH THOSE CUTBACKS ALCAN'S LATEST REDUCTION IN PRIMARY ALUMINUM OUTPUT WILL LOWER ITS OPERATING RATE TO 85 OF CAPACITY CHARLES BRADFORD AN ANALYST WITH UBS SECURITIES IN NEW YORK SAID ALCAN'S MOVE SEEMS LIKE AN ACT OF GOOD FAITH TOWARD RUSSIA BUT HE QUESTIONED THE TIMING NOTING THAT ALCAN APPEARS TO BE SHOWING ITS HAND BEFORE THE RUSSIANS MAKE COMMITMENTS AMY P GASSMAN OF GOLDMAN SACHS SAID IT COULD ALSO BE ARGUED THAT BECAUSE THE RUSSIANS DON'T WANT TO APPEAR TO BE MAKING ALL THE CUTBACKS GIVEN THE SOCIAL IMPLICATIONS OF SUCH MEASURES THE ALCAN DECISION WILL BOLSTER CHANCES FOR AN AGREEMENT IN BRUSSELS BUT SHE WARNED THAT AN ACCORD COULD PROVE VERY DIFFICULT TO IMPLEMENT GIVEN THE NEED FOR HARD CURRENCY IN RUSSIA AN ALCAN SPOKESMAN SAID THE COMPANY'S DECISION ISN'T LINKED TO THE BRUSSELS TALKS OF ALCAN'S PRODUCTION CUTS 60000 METRIC TONS WILL COME FROM ITS PLANT IN SEBREE KY 70000 FROM CANADIAN PLANTS AND THE REST FROM UK AND BRAZILIAN OPERATIONS THE MEASURES SHOULD BE IMPLEMENTED WITHIN TWO MONTHS ALCAN SAID AS MANY AS 300 EMPLOYEES ARE EXPECTED TO BE LAID OFF ALCAN SAID COSTS ASSOCIATED WITH THE CLOSURES PROBABLY WILL BE REFLECTED IN THE COMPANY'S FIRSTQUARTER RESULTS IT DIDN'T ESTIMATE THE AMOUNT OF SUCH COSTS FOR THE NINE MONTHS ENDED SEPT 30 ALCAN HAD A LOSS OF 68 MILLION OR 37 CENTS A SHARE COMPARED WITH A LOSS OF 56 MILLION OR 31 CENTS A SHARE A YEAR EARLIER ALCAN SHARES ROSE 125 CENTS APIECE TO CLOSED AT 2225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401140100 940114 CORRECTIONS & AMPLIFICATIONS CAMDEN PROPERTY TRUST SAID THE ESTIMATED COST FOR ACQUIRING LAND AND DEVELOPING AN APARTMENT COMPLEX IN AUSTIN TEXAS IS 178 MILLION AN ITEM WEDNESDAY INCORRECTLY STATED THAT THE COST OF THE LAND ALONE WAS 178 MILLION 9401140099 940114 PRUDENTIAL SECURITIES AGREES TO PAY FORMER BROKER IN PARTNERSHIP CASE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC QUIETLY AGREED TO PAY A FORMER STAR PARTNERSHIP BROKER 250000 TO SETTLE AN ARBITRATION CASE HE FILED AGAINST THE FIRM PEOPLE FAMILIAR WITH THE CASE SAID THE SETTLEMENT REACHED WITH WILLIAM WEBB WHO SOLD MORE THAN 25 MILLION OF ENERGY PARTNERSHIPS IN HIS SIXYEAR CAREER AT THE FIRM CAME ON THE EVE OF A HEARING BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN TAMPA FLA THE PEOPLE SAID MR WEBB HAD ACCUSED PRUDENTIAL OF AMONG OTHER THINGS PRESSURING BROKERS TO PEDDLE THE PARTNERSHIPS WITHOUT ADEQUATELY DISCLOSING THE RISKS AND WRONGFUL TERMINATION THE ACCORD WHICH CONTAINS A CONFIDENTIALITY CLAUSE IS BELIEVED TO BE THE LARGEST AMOUNT PAID TO A FORMER BROKER BY PRUDENTIAL THE NATION'S FOURTHLARGEST SECURITIES FIRM THE CONFIDENTIALITY PROVISION MEANS MR WEBB CAN'T PUBLICLY DISCUSS THE CASE BUT THE CLAUSE DOESN'T PRECLUDE MR WEBB FROM BEING SUBPOENAED BY PROSECUTORS WHO ARE SEEKING EVIDENCE OF WRONGDOING BY SENIOR PRUDENTIAL SECURITIES MANAGEMENT FROM FORMER BROKERS WHO HAVE ACCUSED THE FIRM OF MISLEADING INVESTORS THE WEBB CASE WAS AMONG THE MOST CLOSELY WATCHED IN A HANDFUL OF CASES FORMER PRUDENTIAL BROKERS HAVE FILED AGAINST THE FIRM SECURITIES LAWYERS SAID PRUDENTIAL HAD BEEN SAYING THAT THE WEBB CASE WOULD NOT BE SETTLED THAT IT WOULD BE THE CASE WHERE PRUDENTIAL WOULD SET AN EXAMPLE AND ESTABLISH THAT BROKERS DO NOT HAVE VALID CLAIMS AGAINST THE FIRM ASSERTED THOMAS R GRADY A NAPLES FLA LAWYER REPRESENTING A FORMER BROKER AND INVESTORS WITH CLAIMS AGAINST PRUDENTIAL THAT'S NOT THE WAY IT WORKED OUT MR WEBB'S SAGA PROVIDES A WINDOW INTO HOW SOME PRUDENTIAL BROKERS PEDDLED LIMITED PARTNERSHIPS IN THE 1980S MR WEBB ASSERTS IN PAPERS FILED WITH ARBITRATORS THAT THE FIRM AGGRESSIVELY PRODDED HIM TO SELL PARTNERSHIPS TO SAFETYCONSCIOUS INVESTORS OFTEN PROMISING ANNUAL RETURNS OF 15 OR MORE AND TO RELY SOLELY ON SALES MATERIALS PROVIDED BY THE FIRM NOT THE TELLALL DOCUMENT KNOWN AS THE PROSPECTUS IN AN UNRELATED ARBITRATION CASE FILED BY PARTNERSHIP INVESTORS AGAINST PRUDENTIAL MR WEBB WAS ASKED IF HE RELIED ON THE PROSPECTUS TO SELL PARTNERSHIPS WELL I WOULD DISCLOSE IT AND HAND IT TO THE CLIENT NORMALLY AFTER THEY LEFT HE TESTIFIED IN TERMS OF GOING OVER THE PROSPECTUS IN A DETAILED FASHION NO I DID NOT DO THAT THE WEBB CASE COULD HAVE GOTTEN MESSY FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ON THE ONE HAND MR WEBB WAS ONE OF THE FIRST WHISTLEBLOWERS IN THE PRUDENTIAL PARTNERSHIP MATTER IN HIS CASE AGAINST THE FIRM HE ACCUSED PRUDENTIAL OF MISLEADING BROKERS INTO SELLING THE PARTNERSHIPS AND HIS TESTIMONY COULD POTENTIALLY HAVE BEEN DAMAGING FOR PRUDENTIAL MR WEBB LEFT PRUDENTIAL IN NOVEMBER 1990 HE HAS TESTIFIED IN OTHER CASES THAT PRUDENTIAL SAYS IT FIRED HIM FOR BUYING STOCK IN AN OUTSIDE ACCOUNT MAINTAINED AT A SECURITIESTRADING UNIT OF BARNETT BANK IN THIS TESTIMONY MR WEBB SAYS HE EARLIER HAD TOLD PRUDENTIAL ABOUT THE ACCOUNT ON THE OTHER HAND MR WEBB WAS VULNERABLE TO ATTACK BY HIS FORMER FIRM INDEED HE HAS CONCEDED IN SEPARATE ARBITRATION CASES THAT INVESTORS HAVE FILED MORE THAN 100 LEGAL CLAIMS INVOLVING PARTNERSHIPS THAT HE SOLD IN SOME CASES INVESTORS HAVE ACCUSED MR WEBB OF CONCENTRATING THE BULK OF THEIR PORTFOLIOS IN HIGHRISK PARTNERSHIPS AND PENNY STOCKS PRUDENTIAL DECLINED TO COMMENT ON THE SETTLEMENT BOTH MR WEBB WHO NOW IS A BROKER FOR ADVEST INC AND MICHAEL CRIDEN HIS ATTORNEY IN MIAMI DECLINED TO COMMENT ON ANY ASPECT OF THE CASE CITING THE CONFIDENTIALITY CLAUSE PRUDENTIAL HASN'T YET PAID THE MONEY FROM THE SETTLEMENT WHICH WAS REACHED LATE LAST WEEK THE PEOPLE FAMILIAR WITH THE CASE SAID IN CASES IN WHICH HE HAS TESTIFIED MR WEBB PAINTED A PICTURE OF A FIRM DRIVEN TO PUSH BROKERS TO AGGRESSIVELY SELL THE PARTNERSHIPS IN AN UNRELATED ARBITRATION CASE MR WEBB TESTIFIED THAT THE FIRM URGED BROKERS TO PLAY OFF INVESTORS' FEAR OF STOCKS FOLLOWING THE 1987 STOCKMARKET CRASH AFTER THE CRASH IN '87 THE PARTNERSHIP DEPARTMENT USED THAT METHOD AS A SELLING TECHNIQUE QUITE A BIT YOU KNOW IN TERMS OF LIMITED PARTNERSHIPS MR WEBB TESTIFIED IN THAT EARLIER CASE IF YOU WERE IN THE LIMITED PARTNERSHIPS AS OPPOSED TO THE MARKET YOU WOULDN'T HAVE SEEN A LOSS IN VALUE LIKE YOU HAD IN THE STOCK MARKET THIS IS NOT THE FIRST LEGAL CLAIM FILED BY FORMER PRUDENTIAL BROKERS THAT THE SECURITIES FIRM HAS SETTLED PRUDENTIAL LAST YEAR SETTLED CASES WITH FOUR FORMER BROKERS PAYING A LAW FIRM REPRESENTING THE BROKERS A TOTAL OF 700000 PEOPLE FAMILIAR WITH THE CASE SAID THOSE BROKERS HAD CONTENDED THAT PRUDENTIAL DELIBERATELY LAUNCHED A SALES CAMPAIGN TO DECEIVE INVESTORS INTO BUYING THE PARTNERSHIPS SEPARATELY SEVERAL CURRENT AND FORMER PRUDENTIAL EMPLOYEES WILL BEGIN RECEIVING SUBPOENAS IN THE NEXT FEW DAYS IN A FEDERAL INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE SUBPOENAS WHICH WERE EXPECTED COME AS THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION INVESTIGATE WHAT ROLE CURRENT AND FORMER PRUDENTIAL EMPLOYEES PLAYED IN THE FIRM'S PARTNERSHIP PRACTICES 9401140098 940114 ABREAST OF THE MARKET INDUSTRIALS DECLINE BY 620 POINTS ON DROP IN BONDS PROFITTAKING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARPLY LOWER BOND PRICES AND PROFITTAKING TRIMMED MORE OF THE GAINS MADE BY STOCKS THIS YEAR IN FAIRLY QUIET TRADING YESTERDAY'S SESSION WAS THE THIRD STRAIGHT DAY OF GIVEBACKS AFTER EQUITIES RALLIED FOR SIX CONSECUTIVE SESSIONS TO START OFF 1994 CRUISING TO RECORDS FOUR TIMES MEANWHILE ON THE NASDAQ STOCK MARKET ITS COMPOSITE INDEX REVERSED MILD WEAKNESS AND CLIMBED 094 POINT TO 78781 BREAKING THROUGH ITS PREVIOUS RECORD OF 78742 SET OCT 15 BIG BOARD DECLINERS LED ADVANCERS 1142 TO 936 VOLUME WAS A SLIM 277886000 SHARES COMPARED WITH 309893000 WEDNESDAY JOHN J SCHRAFF AN EQUITY TRADER AT DAIWA SECURITIES AMERICA SAID INVESTORS WERE THROWN A BIT BY THE BOND MARKET DECLINES AS THEY TRIED TO FIGURE OUT WHICH WAY THEY'RE GOING TO GO FROM HERE BUT HE SAID BUYERS ARE BEGINNING TO TRICKLE BACK INTO THE MARKET AFTER DISAPPEARING IN THE PREVIOUS THREE DAYS LIKEWISE JOSEPH J MCALINDEN DIRECTOR OF RESEARCH AT DILLON READ & CO SAID HE THINKS THE PROFITTAKING HAS JUST ABOUT RUN ITS COURSE AND THE DOW JONES INDUSTRIALS WILL REACH A RECORD AGAIN BEFORE THE END OF THE MONTH MR MCALINDEN ADDED THAT THE STEADY STREAM OF GOOD ECONOMIC NEWS AND THE FOCUS ON FOURTHQUARTER CORPORATE EARNINGS REPORTS WHICH ARE EXPECTED TO BE STRONG WILL CATAPULT TWO GROUPS INTO FAVOR OVER THE COMING WEEKS CYCLICAL STOCKS OF ALL CAPITALIZATION LEVELS AND SMALLCOMPANY ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX CONTINUED ITS STRING OF HIGHER MOVES RISING 019 POINT TO 48006 THE DOW JONES TRANSPORTATION AVERAGE ROSE TO A HIGH CLIMBING 257 TO 182408 AMR CORP INCREASED 1 3/4 TO 71 3/4 DELTA AIR LINES GAINED 1 TO 57 3/8 AND ROADWAY SERVICES INC TACKED ON 1 TO 63 1/2 ON NASDAQ THE BIG THREE US AUTO MAKERS GOT A BOOST FROM NEWS THAT ANALYSTS FORECAST FOURTHQUARTER PROFITS FOR THE TRIO FORD MOTOR INCHED UP 3/8 TO 67 7/8 GENERAL MOTORS ADDED 1 TO 60 1/4 AND CHRYSLER WHICH IS EXPECTED TO LEAD THE PACK IMPROVED 1 TO 60 BANK STOCKS WERE ALSO IN THE LIMELIGHT CITICORP TOPPED THE BIG BOARD MOST ACTIVES LIST WITH ABOUT 56 MILLION SHARES TRADED UP FROM AVERAGE DAILY VOLUME OF 18 MILLION THE STOCK CLIMBED 2 1/8 TO 40 3/4 FOLLOWING A POSITIVE FOURTHQUARTER AND FULLYEAR EARNINGS OUTLOOK AS WELL AS RESTRUCTURING NEWS IN ADDITION CITICORP SAID IT AGREED IN PRINCIPLE TO SELL ITS QUOTRON MARKET DATA SERVICES BUSINESS TO REUTERS HOLDINGS INC WHICH ADDED 7/8 TO 83 JP MORGAN & CO GAINED 3/4 TO 70 3/8 THE COMPANY SAID FOURTHQUARTER NET INCOME OF 192 A SHARE SURPASSED ANALYSTS' EXPECTATIONS OF 170 AND THE 110 EARNED IN THE YEAREARLIER PERIOD MELLON BANK AND BALTIMORE BANCORP ROSE ON SPECULATION THAT MELLON IS CONSIDERING BUYING THE BANK HOLDING COMPANY MELLON DECLINED TO COMMENT THOUGH PEOPLE CLOSE TO MELLON SAID THEY DON'T KNOW WHERE THE RUMORS ARE COMING FROM LATE YESTERDAY BALTIMORE BANCORP SAID IT IS IN PRELIMINARY DISCUSSIONS WITH SEVERAL MAJOR BANK HOLDING COMPANIES REGARDING A POSSIBLE SALE OF THE COMPANY BUT SAID MELLON ISN'T ONE OF THOSE COMPANIES GREEN TREE FINANCIAL JUMPED 2 TO 54 1/4 AFTER A RATING UPGRADE FROM ALEX BROWN & SONS INC TO STRONG BUY FROM BUY THE BROKERAGE FIRM ALSO RAISED ITS 1994 EARNINGS ESTIMATE TO 455 A SHARE FROM 430 BEAR STEARNS COS GAINED 3/4 TO 23 7/8 THE FINANCIALSERVICES FIRM SAID SECONDQUARTER EARNINGS ROSE TO 105 A SHARE FROM 52 CENTS A YEAR EARLIER WALL STREET HAD EXPECTED NET INCOME TO COME IN AT 78 CENTS HEALTH CARE PROPERTY INVESTORS ADDED 1 1/2 TO 28 3/4 THE COMPANY SAID FOURTHQUARTER NET INCOME INCREASED TO 45 CENTS A SHARE FROM 35 CENTS IN THE YEAREARLIER QUARTER AMONG LOSERS QUAKER OATS SAGGED 3 3/8 TO 66 AFTER PROJECTING A 15 TO 20 DECLINE IN FISCAL SECONDQUARTER EARNINGS FROM THE 77 CENTS A SHARE IN THE YEAREARLIER PERIOD ALSO GOLDMAN SACHS DOWNGRADED QUAKER TO MARKET PERFORMER FROM MODERATE OUTPERFORMER CITING THE DISAPPOINTING FORECAST NOMI GHEZ AN ANALYST AT THE BROKERAGE FIRM CUT HER FISCAL 1994 AND 1995 EARNINGS ESTIMATES ON NASDAQ ORACLE CORP SLID 2 3/4 TO 32 1/4 REPORTEDLY AMID PROFITTAKING THE REDUCTION OF INVESTMENT RATINGS AND EARNINGS ESTIMATES AS WELL AS POSSIBLE INVESTOR DISAPPOINTMENT WITH THE REVENUE STREAM FROM THE COMPANY'S MULTIMEDIA PACT WITH BELL ATLANTIC CORP WHICH FELL 1/4 TO 56 1/4 ON THE BIG BOARD ORACLE WAS THE MOSTACTIVE NASDAQ STOCK WITH VOLUME OF 104 MILLION SHARES UP FROM AVERAGE DAILY TURNOVER OF 31 MILLION 9401140097 940114 POLITICS & POLICY DEBATE OVER UNIVERSAL ACCESS RIGHTS WILL SHAPE RULES GOVERNING THE FUTURE OF COMMUNICATIONS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DO AMERICANS HAVE AN INALIENABLE RIGHT OF ACCESS TO FANCY NEW TELEPHONE TEXT AND VIDEO SERVICES THAT DON'T YET EXIST THE QUESTION ISN'T MERELY ACADEMIC HOW IT IS ANSWERED WILL HELP SHAPE THE GROUND RULES FOR THE ADMINISTRATION AND CONGRESS AS THEY STRIVE TO ELIMINATE BARRIERS TO COMPETITION AMONG CABLETELEVISION AND TELEPHONE COMPANIES BATTLE LINES ARE ALREADY STARTING TO FORM ON ONE SIDE IS AN EMERGING COALITION OF SOCIALJUSTICE GROUPS RURAL INTERESTS AND SOME CLINTON ADMINISTRATION ADVISERS WHO WARN OF THE CREATION OF AN INFORMATION UNDERCLASS IF POOR OR RURAL RESIDENTS CAN'T AFFORD OR CAN'T HOOK UP TO SERVICES SUCH AS ELECTRONIC JOB LISTINGS AND VIDEO HEALTH HOTLINES SOME SUCH AS THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE ARE ORGANIZING LOBBYING EFFORTS TO ENSURE THAT THE NOTION OF UNIVERSAL TELEPHONE SERVICE IS EXTENDED TO THE DIGITAL TWOWAY COMMUNICATIONS OF THE FUTURE WE CANNOT TOLERATE NOR IN THE LONG RUN CAN THIS NATION AFFORD A SOCIETY IN WHICH SOME CHILDREN BECOME FULLY EDUCATED AND OTHERS DO NOT IN WHICH SOME ADULTS HAVE ACCESS TO TRAINING AND LIFETIME EDUCATION AND OTHERS DO NOT VICE PRESIDENT AL GORE TOLD A TELECOMMUNICATIONS CONFERENCE TUESDAY NOR CAN WE PERMIT GEOGRAPHIC LOCATION TO DETERMINE WHETHER THE INFORMATION HIGHWAY PASSES BY YOUR DOOR BUT OTHERS SAY THERE'S NO GUARANTEE THE SERVICES WILL RISE BEYOND MULTIPLECHOICE MOVIES HOME SHOPPING AND GLORIFIED VIDEO GAMES AND THAT ASSURING ACCESS WOULD AMOUNT TO A HUGE NEW ENTITLEMENT PROGRAM BASED ON A SHAKY HYPOTHESIS THIS SPECTER OF HAVES AND HAVENOTS I THINK IS MORE A SPECTER TODAY THAN A REAL DANGER SAYS PETER HUBER SENIOR FELLOW AT THE MANHATTAN INSTITUTE IT SEEMS TO ME BEFORE ONE SOLVES THE PROBLEM ONE SHOULD MAKE SURE THE PROBLEM IS THERE THE BEST WAY TO ASSURE ACCESS OTHERS SAY ISN'T THROUGH GOVERNMENT MANDATES BUT THROUGH THE LOWER PRICES THAT WILL RESULT FROM INCREASED COMPETITION IT IS A THORNY ISSUE IT IS A DIFFICULT ISSUE BUT IT IS A KEY ISSUE AS WE MOVE INTO THE NEW ERA SAYS ASSISTANT COMMERCE SECRETARY LARRY IRVING MR GORE WAS ASKED ABOUT IT DURING AN ONLINE DISCUSSION WITH MEMBERS OF THE COMPUSERVE INFORMATION SERVICE SOME STATES ARE POINTING TO UNIVERSAL SERVICE AS A REASON TO MAINTAIN LOCALTELEPHONE MONOPOLIES INNERCITY RESIDENTS ARE EXPECTED TO ADDRESS THE SUBJECT DURING A HEARING WITH MR IRVING IN LOS ANGELES NEXT THURSDAY THE ADMINISTRATION IS CURRENTLY TRYING TO COME UP WITH A PLAN FOR ALL CARRIERS INCLUDING LONGDISTANCE AND CABLE COMPANIES TO CONTRIBUTE TO UNIVERSAL SERVICE BUT MR GORE DIDN'T SAY HOW THE ADMINISTRATION WOULD STRUCTURE A SUBSIDY PLAN OR HOW POLICY MAKERS SHOULD DECIDE WHETHER A SERVICE IS WORTHY OF SUBSIDY THOSE DETAILS WOULD LARGELY BE LEFT TO THE STATES AND THE FEDERAL COMMUNICATIONS COMMISSION FOR ADVOCATES OF GOVERNMENTGUARANTEED UNIVERSAL ACCESS TO THE INFORMATION SERVICES OF THE FUTURE THE CURRENT APPROACH TO TELEPHONE SERVICE PROVIDES A ROUGH ANALOGY A HODGEPODGE OF SUBSIDIES SOME OPEN AND SOME HIDDEN KEEPS RURAL AND RESIDENTIAL CUSTOMERS FROM PAYING HIGH TELEPHONE BILLS FOR EXAMPLE FEDERAL SURCHARGES ON LONGDISTANCE COMPANIES HELP FUND A POOL FOR PHONE COMPANIES IN HIGHCOST RURAL AREAS THUS LOWERING THE AVERAGE RURAL BILL BY MORE THAN 300 A YEAR BUT RAISING THE AVERAGE URBAN BILL BY ALMOST 80 A YEAR ACCORDING TO ONE INDUSTRY STUDY LOCAL PHONE COMPANIES ALSO CLAIM THEY SHIFT 20 BILLION A YEAR TO REDUCE RESIDENTIAL RATES AT THE EXPENSE OF HIGHVOLUME BUSINESS CUSTOMERS THOUGH MANY PEOPLE DISPUTE THE FIGURE THEY ACKNOWLEDGE THAT RESIDENTIAL RATES ARE ARTIFICIALLY LOW BUT WITH FREER COMPETITION THE SOURCES OF THOSE TELEPHONE SUBSIDIES ARE STARTING TO DEFECT IN SUCH BIG CITIES AS NEW YORK WIRELESS COMPANIES AND CABLE OPERATORS ARE POACHING LUCRATIVE BUSINESS USERS AND LONGDISTANCE CARRIERS SUCH AS MCI COMMUNICATIONS CORP ARE STRIVING TO SET UP THEIR OWN LOCAL PHONE NETWORKS FIGURING OUT HOW TO SUBSIDIZE RURAL AND INNERCITY RESIDENTS WITHOUT CREATING A CUMBERSOME NEW ENTITLEMENT SYSTEM WON'T BE EASY PARTICULARLY IF REGULATORS ADD FANCIER TECHNOLOGIES TO THE LIST OF GUARANTEED SERVICES ALREADY MANY STATES REQUIRE TOUCHTONE CAPABILITY FOR BASIC PHONE SERVICE AND SOME ARE CONSIDERING REQUIRING LINES CLEAR ENOUGH TO CARRY ELECTRONIC INFORMATION SOME ADMINISTRATION ADVISERS INCLUDING COLUMBIA UNIVERSITY PROFESSOR ELI NOAM HAVE ARGUED FOR A SORT OF VALUEADDED TAX ON TELECOMMUNICATIONS SUPPLIERS WITH THE FUNDS DISTRIBUTED TO COMPANIES THAT SIGN UP SUBSIDIZED CUSTOMERS OTHERS INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO FAVOR PAYING THE SUBSIDY DIRECTLY TO CONSUMERS PERHAPS THROUGH TELEPHONE STAMPS SO THAT BENEFITS ONLY GO TO POOR PEOPLE AND NOT SAY WEALTHY HORSEFARM OWNERS IN RURAL AREAS HOWEVER CONVINCING ESTABLISHED COMPANIES TO FUND A SUBSIDY PROGRAM WON'T BE EASY AND MR GORE HAS ALREADY SAID NEW COMMUNICATIONS COMPANIES WOULD BEAR A SMALLER SHARE OF THE BURDEN ALSO DECIDING WHETHER A SERVICE IS WORTHY OF SUBSIDY IS TRICKY ALONG WITH THE EDUCATIONAL AND HEALTH PROGRAMS THAT WILL PRESUMABLY BE CARRIED ON THE TWOWAY VIDEO SERVICES OF TOMORROW THERE IS SURE TO BE MUCH OF DUBIOUS SOCIAL VALUE FOR EXAMPLE CABLETV GIANT TELECOMMUNICATIONS INC RECENTLY SHOWED A TRADE SHOW A VIDEO OF ITS VISION OF THE MULTIMEDIA FUTURE FEATURING TWO BOYS IN SEPARATE LIVING ROOMS HOOKING UP FOR A GAME OF SEWER SHARK I DON'T WANT TO BE FORCED TO PAY FOR THE INTERACTIVE VIDEO GAMES OR MOVIES ON DEMAND OF MY NEIGHBOR DOWN THE STREET SAYS BRADLEY STILLMAN LEGISLATIVE COUNSEL OF THE CONSUMER FEDERATION OF AMERICA HE SAYS TELEPHONE COMPANIES PROMOTE A BROAD DEFINITION OF UNIVERSAL SERVICE BECAUSE IT ALLOWS THEM TO LAY MILES OF FIBEROPTIC WIRE AT CUSTOMERS' EXPENSE HIS GROUP HAS THE SUPPORT OF THE POWERFUL AMERICAN ASSOCIATION OF RETIRED PERSONS WHICH WANTS TO ENSURE THAT RATES FOR BASIC TELEPHONE SERVICE AREN'T RAISED TO SUBSIDIZE MORE SPECULATIVE SERVICES BUT BARBARA O'CONNOR DIRECTOR OF ALLIANCE FOR PUBLIC TECHNOLOGY A GROUP THAT BACKS A STRONG UNIVERSALSERVICE POLICY SAYS COURTS WON'T LET LOCAL GOVERNMENTS LAUNCH SERVICES SUCH AS ELECTRONIC VOTING VEHICLE REGISTRATION AND LIBRARIES UNLESS THE SERVICES CAN REACH A BROAD SWATH OF THE POPULATION ONE COMPROMISE COULD BE USING PUBLIC INSTITUTIONS AS A WAY TO SPREAD DIGITAL SERVICES INTO MOST NEIGHBORHOODS MR GORE IS ASKING COMPANIES TO WIRE ALL SCHOOLS LIBRARIES HOSPITALS AND CLINICS BY THE YEAR 2000 AND DURING LAST NIGHT'S COMPUSERVE SESSION HE SAID THE COMPANIES SHOULD PROVIDE FREE ACCESS TO EVERY CLASSROOM IN THEIR SERVICE AREA ON WEDNESDAY MORNING MR GORE WATCHED AS STUDENTS IN A CUPERTINO CALIF HIGH SCHOOL USED APPLE COMPUTER INC MACINTOSH COMPUTERS WIRED TO THE INTERNET TO SEND ELECTRONIC MESSAGES TO SCIENTISTS AND GERMAN PEN PALS AND TO RETRIEVE THE SOUND AND VIDEO OF ANOTHER RECENT GORE SPEECH THE TIME IS NOT FAR OFF WHEN EVERY TEACHER AND EVERY SCHOOL WILL BE DOING THIS ON A REGULAR BASIS MR GORE TOLD THE STUDENTS 9401140096 940114 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GREAT PACIFIC REAL ESTATE INVESTMENT TRUST AN AMENDED OFFERING OF TWO MILLION UNITS EACH CONSISTING OF ONE COMMON SHARE AND ONE WARRANT TO PURCHASE ONE COMMON SHARE VIA BARABAN SECURITIES OF LOS ANGELES INFOSOFT INTERNATIONAL INC AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA CS FIRST BOSTON AND ADAMS HARKNESS & HILL INC LEVEL ONE COMMUNICATIONS INC AN OFFERING OF 28 MILLION COMMON SHARES OLYMPIC STEEL INC AN INITIAL OFFERING OF FOUR MILLION COMMON SHARES VIA SALOMON BROTHERS INC GOLDMAN SACHS & CO AND MCDONALD & CO SECURITIES INC SWEETWATER INC AN INITIAL OFFERING OF 625000 COMMON SHARES AT 7 A SHARE XLI CORP AN OFFERING OF UP TO 862500 UNITS EACH CONSISTING OF ONE CONVERTIBLE PREFERRED SHARE AND ONE COMMON STOCK PURCHASE WARRANT VIA THOMAS JAMES ASSOCIATES EACH CONVERTIBLE PREFERRED SHARE WILL BE CONVERTIBLE INTO TWO XLI COMMON SHARES 9401140095 940114 FOREIGN EXCHANGE DOLLAR POSTS SURGE TO A 28MONTH HIGH AGAINST MARK BUT SLIPS VERSUS THE YEN BY GARY ROSENBERGER AND TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SURGED TO ITS HIGHEST LEVEL AGAINST THE MARK SINCE AUGUST 1991 AS SOME SURPRISINGLY STRONG US RETAILSALES DATA FOR DECEMBER PROVIDED RENEWED EVIDENCE OF A BOISTEROUS US ECONOMY THE DOLLAR SLIPPED VERSUS THE YEN HOWEVER AS TRADERS SOLD MARKS FOR YEN AND US OFFICIALS VOICED CONCERNS ABOUT A LACK OF PROGRESS IN THE USJAPAN TRADE TALKS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17505 MARKS UP FROM 17337 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11176 YEN DOWN FROM 11220 YEN STERLING WAS TRADING AT 14970 DOWN FROM 15035 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11173 YEN AND AT 17500 MARKS THE DOLLAR BEGAN ITS CLIMB AGAINST THE MARK DURING THE ASIAN DAY AS TRADERS DUMPED THE GERMAN CURRENCY ON WORD OF A CBS NEWS POLL SHOWING THAT SUPPORT FOR RUSSIAN PRESIDENT BORIS YELTSIN HAS PLUNGED TO 38 CURRENTLY FROM 50 IN OCTOBER THE MARK OFTEN SUFFERS ON SIGNS OF POLITICAL TENSION IN RUSSIA BECAUSE OF GERMANY'S CLOSE POLITICAL AND ECONOMIC LINKS TO EASTERN EUROPE BY EARLY NORTH AMERICAN TRADING THE MARK SELLOFF HAD LIFTED THE DOLLAR TO JUST UNDER A KEY PSYCHOLOGICAL LEVEL AT 17480 MARKS THE HIGHEST LEVEL REACHED BY THE DOLLAR DURING 1993 AND FROM THERE THE DOLLAR TOOK OFF AFTER A BULLISH US RETAIL SALES REPORT PERSUADED TRADERS THAT THE US ECONOMY IS STILL RACING AHEAD ON ALL CYLINDERS THE MARKET HAD BEEN LOOKING TO TAKE OUT LAST YEAR'S HIGH FOR SOME TIME SAID BILL BERTHA A VICE PRESIDENT AT MELLON BANK IN PITTSBURGH THE RETAILSALES DATA WAS A CATALYST TO DO JUST THAT IT JUST FINALLY SPRUNG HE ADDED THE US COMMERCE DEPARTMENT SAID US RETAIL SALES INCREASED 08 IN DECEMBER WELL ABOVE ECONOMISTS' EXPECTATIONS OF A 04 GAIN AS THE DOLLAR SLICED THROUGH THE 1993 HIGH IT CONTINUED TO CLIMB TO AN INTRADAY HIGH OF 17553 MARKS A LEVEL UNSEEN SINCE AUG 31 1991 IN THE AFTERMATH OF THE COUP AGAINST THENSOVIET PRESIDENT MIKHAIL GORBACHEV AND THE US CURRENCY MANAGED TO HOLD ABOVE THE 17500MARKS LEVEL DESPITE REPORTS OF DOLLAR SALES BY THE BUNDESBANK GERMANY'S CENTRAL BANK AS THE DOLLAR CLIMBED PAST THAT LEVEL FEARS OF BUNDESBANK INTERVENTION HAVE RECENTLY HELPED TO CAP THE DOLLAR'S RISE AGAINST THE MARK BUT THOSE FEARS WERE ASSUAGED AFTER TRADERS REPORTED ONLY RELATIVELY LIGHT INTERVENTION WHICH WASN'T SUFFICIENT TO REVERSE THE RALLY THE DOLLAR BROKE THROUGH CRITICAL LEVELS AND EVIDENTLY THE BUNDESBANK DID SELL THE DOLLAR BUT NOT WITH A TRUMPET BLARING SAID JOHN MCCARTHY MANAGER OF FOREIGN EXCHANGE AT ING CAPITAL MARKETS INC PERHAPS THEY CAME IN TO ENSURE THAT THE RISE DIDN'T GET OUT OF HAND SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK I THINK THEY'RE SMART ENOUGH TO KNOW THEY DON'T HAVE ENOUGH RESOURCES TO BUCK THE ENTIRE FOREIGNEXCHANGE MARKET HE SAID MEANWHILE THE YEN GAINED AGAINST BOTH THE DOLLAR AND THE MARK BOOSTED BY A TREMENDOUS AMOUNT OF STOPLOSSES WHEN TRADERS LONG ON THE MARK AGAINST THE YEN WERE CAUGHT OFF GUARD BY THE GERMAN CURRENCY'S SUDDEN DECLINE VERSUS THE DOLLAR SAID MELLON BANK'S MR BERTHA THE YEN ALSO WAS HELPED BY MORE TOUGH TALK BY US OFFICIALS RILED BY THE SLOW PACE OF JAPANUS TRADE TALKS 9401140094 940114 BUSINESS BRIEF BROWN GROUP INC CHARGE OF 50 MILLION COVERS PAYROLL CUTS CONSOLIDATIONS BROWN GROUP INC ST LOUIS SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF 50 MILLION TO COVER COSTS TO REDUCE ITS WORKFORCE AND TO CLOSE OR CONSOLIDATE OPERATIONS THE SHOE AND SPECIALTYRETAILING COMPANY SAID IT PLANS TO CONSOLIDATE ITS BROWN SHOE CO AND PAGODA UNITS CLOSE MORE THAN 100 COMPANYOWNED REGAL AND CONNIE SHOE STORES NATIONWIDE AND SHUT FIVE SHOE FACTORIES IN MISSOURI AND TENNESSEE THE MOVES ARE PART OF A RESTRUCTURING PLAN THAT WILL CUT EMPLOYMENT BY 5660 POSITIONS OR ABOUT 20 BROWN GROUP SAID WHEN THE MOVES ARE COMPLETED NEXT YEAR THE COMPANY SAID IT WILL HAVE REDUCED COSTS BY 40 MILLION WHILE ALLOWING IT TO FOCUS ON ITS MOSTPROMISING BUSINESSES FOR THE FOURTH QUARTER ENDED JAN 30 1993 BROWN GROUP POSTED NET INCOME OF 91 MILLION OR 53 CENTS A SHARE ON SALES OF 4498 MILLION 9401140093 940114 COLUMBUS SOUTHERN POWER CO COLUMBUS OHIO COLUMBUS SOUTHERN POWER CO A UNIT OF AMERICAN ELECTRIC POWER CO SAID ON FEB 12 IT WILL REDEEM THE ENTIRE PRINCIPAL AMOUNT OUTSTANDING OF ITS 8 5/8 FIRST MORTGAGE BONDS DUE 1996 AND THE ENTIRE PRINCIPAL AMOUNT OF ITS 9 FIRST MORTGAGE BONDS DUE 1999 THE REDEMPTION PRICE FOR THE 8 5/8 BONDS WILL BE 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM FEB 1 REDEMPTION PRICE FOR THE 9 BONDS WILL BE 10174 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM DEC 1 ALSO THE COMPANY SAID THAT ON MARCH 1 IT WILL REDEEM 1 MILLION PRINCIPAL AMOUNT OF ITS 9 FIRST MORTGAGE BONDS DUE 2017 THE COMPANY WILL REDEEM THOSE BONDS AT THE SPECIAL REDEMPTION PRICE OF 100 OF THE PRINCIPAL AMOUNT CITIBANK NEW YORK IS THE REDEMPTION AGENT COLUMBUS SOUTHERN POWER SAID 9401140092 940114 BUY HIGH SELL LOW IS MARCHING ORDER OF FIRM PURCHASING EXSOVIET URANIUM BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PRESIDENT CLINTON'S NUCLEARDISARMAMENT AGREEMENT WITH RUSSIA AND UKRAINE IS A DIPLOMATIC SUCCESS THAT'S ABOUT TO BECOME A HUGE BUSINESS CHALLENGE FOR WILLIAM TIMBERS HE IS THE HEAD OF UNITED STATES ENRICHMENT CORP THE CONGRESSIONALLY CHARTERED COMPANY THAT'S IN THE MIDDLE OF THE 119 BILLION AGREEMENT TO PURCHASE URANIUM USED IN WARHEADS OF THE FORMER SOVIET UNION AND TURN IT INTO FUEL FOR NUCLEAR POWER PLANTS THE BASIC MEGATONSTOMEGAWATTS AGREEMENT REACHED BY PRESIDENT CLINTON RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK WILL BE FOLLOWED BY THE SIGNING TODAY OF AN IMPLEMENTING CONTRACT BY MR TIMBERS AND VIKTOR MIKHAILOV THE RUSSIAN ATOMIC ENERGY COMMISSIONER THEY'LL SIGN THE AGREEMENT IN A BUILDING WHERE THE FORMER SOVIET UNION DESIGNED THE NUCLEAR ARSENAL IT DEPLOYED AGAINST THE US NOW MR MIKHAILOV DESCRIBES THE ARSENAL IN ECONOMIC RATHER THAN MILITARY TERMS IN AN INTERVIEW WITH NUKEM MARKET REPORT A GERMAN PUBLICATION HE CALLS THE HIGHLY ENRICHED URANIUM THAT POWERS MISSILES AND BOMBS A VERY IMPORTANT RESERVE OF RUSSIA BECAUSE THE CORE OF THE WARHEADS REPRESENTS A SOURCE OF HARD CURRENCY FOR THE CASHSTRAPPED COUNTRY AS IT REDUCES ITS MILITARY THREAT RUSSIA WILL USE SOME OF THE REVENUE TO CONVERT ITS DEFENSE INDUSTRIES TO OTHER USES IMPROVE THE SAFETY OF ITS NUCLEAR POWER PLANTS AND CLEAN UP POLLUTED AREAS THAT'S WHERE MR TIMBERS COMES IN US ENRICHMENT THE COMPANY HE HAS RUN SINCE MARCH IS IN CHARGE OF SUPERVISING THE TRANSFORMATION OF THE WARHEADS' HIGHLY ENRICHED URANIUM TO LOW ENRICHED URANIUM FOR USE IN POWER PLANTS RUSSIAN FACILITIES WILL DO THE CONVERSION AND US ENRICHMENT WILL BUY THE FINISHED PRODUCT FROM THE RUSSIANS FOR SALE ON THE WORLD MARKET THE CONCEPT IS SIMPLE BUT EXECUTION OF THE PLAN WILL CREATE TWO PROBLEMS FOR MR TIMBERS FIRST THE CONTRACT REQUIRES US ENRICHMENT TO PAY MUCH MORE FOR THE FUEL THAN IT CAN BE SOLD FOR MR TIMBERS CALLS THE DIFFERENCE A NATIONAL SECURITY PREMIUM THAT HE EVENTUALLY HOPES TO GET BACK FROM THE US GOVERNMENT SECOND US ENRICHMENT WILL BECOME BOTH A CUSTOMER OF THE RUSSIAN NUCLEAR INDUSTRY AND A COMPETITOR CURRENTLY US ENRICHMENT SELLS ABOUT 46 OF THE LOW ENRICHED URANIUM USED ON THE WORLD MARKET THE REST IS SOLD BY COGEMA A CONSORTIUM LED BY THE FRENCH GOVERNMENT URENCO A BRITISHLED GROUP AND THE RUSSIAN GOVERNMENT ONE PART OF THE AGREEMENT MAKES IT EASIER FOR RUSSIA TO SELL LOW ENRICHED URANIUM TO NUCLEAR POWER PLANTS IN THE US MR TIMBERS DOESN'T SEEM TOO WORRIED ABOUT THE ADDITIONAL COMPETITION THE RUSSIANS HAVE GOOD TECHNOLOGY BUT THEY DON'T KNOW WHAT THEIR PRICING IS HE SAYS MR TIMBERS A FORMER INVESTMENT BANKER GOT INVOLVED IN THE PROGRAM WHEN THE US ENERGY DEPARTMENT HIRED HIM TO STUDY WAYS TO PRIVATIZE COMMERCIAL ASPECTS OF ITS NUCLEARPROCESSING BUSINESS BASED ON HIS ANALYSIS CONGRESS CREATED US ENRICHMENT LAST YEAR WITH THE IDEA THAT IT WILL EVENTUALLY BECOME PRIVATELY OWNED RIGHT NOW THE TREASURY IS MY ONLY SHAREHOLDER SAYS MR TIMBERS WHO CAME TO MOSCOW ON TREASURY SECRETARY LLOYD BENTSEN'S PLANE FOR THE CLINTONYELTSIN SUMMIT US ENRICHMENT HAS ASSETS OF ABOUT 3 BILLION ANNUAL REVENUE OF 15 BILLION AND A PROFIT OF ABOUT 400 MILLION WHICH IT TURNS OVER TO THE TREASURY UNDER THE AGREEMENT THE US WILL PAY RUSSIA 119 BILLION OVER 20 YEARS FOR 500 METRIC TONS OF URANIUM BUT THE CONTRACT WHICH ALSO INCLUDES BELARUS AND KAZAKHSTAN COULD TURN OUT TO BE MUCH LARGER THE INCLUSION OF UKRAINE WILL ADD 50 METRIC TONS WHICH RUSSIA WILL PURCHASE IN RETURN FOR DEBT RELIEF AND FUEL FOR POWER PLANTS MORE SIGNIFICANTLY THE RUSSIAN ARSENAL CURRENTLY CONTAINS 1250 METRIC TONS OF HIGHLY ENRICHED URANIUM THE CONTRACT COULD BE MUCH LARGER IF RUSSIA TAKES THE OPTION TO SELL MORE FUEL BY DISMANTLING MORE WARHEADS THE AGREEMENT WILL FLOOD THE MARKET WITH NEW FUEL AT A TIME WHEN PRICES ALREADY ARE SOFT THE PROBLEM US ENRICHMENT FACES IS THAT UNDER THE CONTRACT IT MUST PAY RUSSIA 82 FOR EACH UNIT OF LOW ENRICHED URANIUM IT PURCHASES AT A TIME WHEN THE WORLD PRICE IS 50 AND LIKELY TO DROP ONCE THE SWORDSTOPLOWSHARES PROGRAM STARTS MR TIMBERS HOPES THAT THE US GOVERNMENT WILL DECIDE TO PAY THAT DIFFERENCE TO US ENRICHMENT IN URANIUM WHICH IT CAN THEN SELL I'D RATHER HAVE A HARD ASSET ON THE BALANCE SHEET AS THE COMPANY WORKS TO BECOME PRIVATELY OWNED HE SAYS 9401140091 940114 BUSINESS BRIEF STATE STREET BOSTON CORP FOURTHQUARTER PROFIT ROSE ON INCREASE IN FEE REVENUE STATE STREET BOSTON CORP SAID ITS FOURTHQUARTER NET INCOME ROSE 93 TO 477 MILLION OR 62 CENTS A SHARE FROM 436 MILLION OR 56 CENTS A SHARE THE BOSTON BANK MAKES MOST OF ITS MONEY FROM FEES FOR SERVICING MUTUAL FUNDS AND INSTITUTIONAL MONEY MANAGEMENT IT SAID THAT HIGHER OPERATING EXPENSES FOR SALARIES COMPUTERS AND PRODUCT DEVELOPMENT OFFSET A 21 INCREASE IN FEE REVENUE TO 2227 MILLION FOR THE YEAR STATE STREET SAID NET ROSE 12 TO 1798 MILLION OR 236 A SHARE FROM 1604 MILLION OR 210 A SHARE DURING THE YEAR ASSETS UNDER CUSTODY ROSE 21 TO 16 TRILLION 9401140090 940114 LEGAL BEAT SOME STATES TRY TAXING DOCTORS TO COVER THE HIGH COST OF HEALTH CARE FOR THE POOR BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL FORTUNATO A WEST VIRGINIA DOCTOR OPENED A NEW OFFICE FIVE MILES ACROSS THE OHIO RIVER LAST SUMMER JUST FAR ENOUGH TO SHIELD PART OF HIS INCOME FROM WEST VIRGINIA'S NEW 2 TAX ON DOCTORS' REVENUES WHILE AN EXTREME REACTION DR FORTUNATO'S MOVE TO OHIO REFLECTS GROWING CONCERN WITHIN THE MEDICAL COMMUNITY ABOUT MANY STATES' NEW RELIANCE ON DOCTORS AND HOSPITALS TO HELP DEFRAY THE COST OF MEDICAL CARE FOR THE POOR WITHIN THE PAST YEAR LAWMAKERS IN MINNESOTA AND KENTUCKY ALSO HAVE IMPLEMENTED 2 REVENUE TAXES WHICH DOCTORS ARE CHALLENGING IN COURT NEBRASKA TENNESSEE MINNESOTA AND WASHINGTON DC HAVE PLACED NEW LICENSING FEES ON PHYSICIANS AND PHYSICIAN TAXES ARE ON THE AGENDA IN ABOUT A DOZEN STATES MEANWHILE ABOUT 25 STATES HAVE PLACED LEVIES ON HOSPITALS TO HELP CARRY THE BURDEN THESE NEW FINANCING EFFORTS SPRING FROM MANY STATES' INCREASING DESPERATION OVER THE COSTS OF THE FEDERAL MEDICAID PROGRAM FOR THE POOR WHICH IS PARTLY FUNDED BY THE STATES THE ASSESSMENTS HAVE RENEWED THE QUESTION OF WHETHER IT IS FAIR TO TAX ONE GROUP OF PEOPLE TO PAY FOR SERVICES THAT BENEFIT SOCIETY SIMILAR TAXES ON LAWYERS THAT HAVE BEEN PROPOSED IN SOME STATES FOR VARIOUS PURPOSES ALSO HAVE AROUSED CONTROVERSY BECAUSE SUCH TAXES OFTEN TARGET HIGHLY PAID AND SOMETIMES UNPOPULAR PROFESSIONS THEY HAVE BECOME POLITICALLY FASHIONABLE IN AN ERA OF PUBLIC HOSTILITY TO BROAD TAX HIKES STATES TYPICALLY JUSTIFY THE PHYSICIAN ASSESSMENT FOR INSTANCE AS A WAY OF REQUIRING DOCTORS TO FULFILL THEIR ETHICAL RESPONSIBILITY TO CARE FOR THE POOR IN ADDITION SOME STATE OFFICIALS POINT OUT BECAUSE THE STATE GIVES DOCTORS A VALUABLE AND EXCLUSIVE LICENSE TO PRACTICE MEDICINE IT HAS A RIGHT TO COLLECT A SMALL TAX FOR THE PUBLIC GOOD BUT THE TAXES HAVE TRIGGERED FIERCE RESISTANCE FROM THE AMERICAN MEDICAL ASSOCIATION AND ITS AFFILIATED STATE ORGANIZATIONS TAXING DOCTORS TO COVER HEALTH CARE FOR THE POOR IS LIKE BUILDING CONTRACTORS HAVING TO BUILD HOMES FOR THE HOMELESS OR LAWYERS HAVING TO PAY TAXES TO FUND THE BUILDING OF PRISON SYSTEMS SAYS ARDIS HOVEN THE PRESIDENT OF THE KENTUCKY MEDICAL ASSOCIATION THIS WAS BASICALLY A SPECIAL PROFESSIONAL TAX THAT WAS BENEFITING ONLY ONE SEGMENT OF SOCIETY THE INDIGENT IN KENTUCKY A GROUP OF PHYSICIANS THE STATE MEDICAL ASSOCIATION AND SOME HEALTHMAINTENANCE ORGANIZATIONS HAVE ARGUED THAT THE STATE'S NEW TAX WHICH ALSO ASSESSES HOSPITALS AND HMOS 25 OF THEIR REVENUES VIOLATES KENTUCKY'S CONSTITUTION IN NOVEMBER A JUDGE AGREED HIS RULING IS UNDER APPEAL THERE IS NO REASONABLE BASIS TO SINGLE OUT THESE HEALTHCARE PROVIDERS TO PAY SPECIAL TAXES TO SUPPORT THE MEDICAID PROGRAM WROTE STATE JUDGE ROGER CRITTENDEN IN HIS RULING THIS PROGRAM BENEFITS THE STATE'S RESIDENTS AS A WHOLE AND THERE ARE NO JUSTIFIABLE REASONS FOR ARBITRARILY DESIGNATING PHYSICIANS TO PAY FOR IT BUT LAST MONTH THE CHIEF JUSTICE OF THE KENTUCKY SUPREME COURT SAID THE STATE COULD CONTINUE COLLECTING THE TAX UNTIL THE APPEAL IS DECIDED STATES HAVE FOUND THEMSELVES SQUEEZED FINANCIALLY FROM SEVERAL DIRECTIONS ABOVE ALL THE PRICE OF MEDICAL CARE HAS SOARED THE FEDERAL GOVERNMENT HAS EXPANDED THE SERVICES COVERED BY MEDICAID AND HAS MADE MORE PEOPLE ELIGIBLE FOR IT AND THE RECESSION HAS DRIVEN MORE PEOPLE ONTO THE PROGRAM'S ROLLS CONGRESS HASN'T INCREASED THE FEDERAL SHARE OF MEDICAID FUNDING IN YEARS LEAVING THE STATES TO PICK UP THE SLACK MEDICAID HAS BECOME THE PACMAN OF STATE GOVERNMENT SAYS RICHARD HEGNER A MEDICAID SPECIALIST AT GEORGE WASHINGTON UNIVERSITY'S INTERGOVERNMENTAL HEALTH POLICY PROJECT PRESIDENT CLINTON'S HEALTH PLAN AS WRITTEN WOULD HELP RELIEVE THE STATES' FINANCIAL CRUNCH BY ELIMINATING MAJOR PARTS OF THE MEDICAID PROGRAM INSTEAD POOR AND UNEMPLOYED PEOPLE WOULD BE POOLED INTO THE SAME GIANT HEALTHCARE ALLIANCES AS THE GENERAL PUBLIC AND THE COST OF THEIR HEALTH COVERAGE WOULD BE PAID MOSTLY BY THE FEDERAL GOVERNMENT MEANWHILE LEGISLATURES THAT TAX PHYSICIANS ARE IN EFFECT ENCOURAGING THEM TO MAINTAIN THEIR INCOME BY REACHING OUT FOR NEW PATIENTS INCLUDING THOSE COVERED BY MEDICAID SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST YOU CAN STILL KEEP YOUR MERCEDES BUT INSTEAD OF GOING HOME AT 5 O'CLOCK YOU GO HOME AT 530 HE SAYS THE OTHER OPTION SAYS DR FORTUNATO OF WEST VIRGINIA IS TO MOVE OUT OF STATE DR FORTUNATO SEES ABOUT 20 OF HIS PATIENTS IN RENTED OFFICE SPACE IN MARTINS FERRY OHIO AND IS CONSIDERING MOVING HIS ENTIRE PRACTICE THERE IF THE TAX RATE IS RAISED ANTICIPATING SUCH A RESPONSE MINNESOTA HAS EXTENDED ITS TAX TO OUTOFSTATE PHYSICIANS WHO TREAT MINNESOTA PATIENTS PHYSICIANS IN NEIGHBORING NORTH DAKOTA SOUTH DAKOTA IOWA AND WISCONSIN HAVE FILED A LAWSUIT LARGELY FUNDED BY THE AMA CHALLENGING THE MINNESOTA BORDERSTATE TAX AS UNCONSTITUTIONAL THE FORMER GREENFIELD & CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS CONTINUES TO BE ROCKED BY DEFECTIONS LAST SUMMER NAME PARTNER RICHARD GREENFIELD LEFT THE HAVERFORD PA FIRM AMID A NEW JERSEY FEDERALCOURT INQUIRY INTO ALLEGATIONS OF ETHICAL IMPROPRIETIES IN A SECURITIES CLASS ACTION THAT HE HANDLED INVOLVING INVESTOR DONALD TRUMP MR GREENFIELD ULTIMATELY ACCEPTED A 5000 FINE AND A ONEYEAR SUSPENSION FROM THE PRACTICE OF LAW IN FEDERAL COURTS THAT STARTED JAN 1 THIS WEEK THE SURVIVING FIRM CHIMICLES BURT & JACOBSEN ANNOUNCED THAT TWO OTHER LAWYERS INCLUDING NAME PARTNER C OLIVER BURT AND PARTNER MICHAEL J PUCILLO WERE LEAVING TO FORM BURT & PUCILLO THE NEW FIRM WILL HAVE OFFICES IN HAVERFORD AND WILL ASSUME CONTROL OF THE FORMER CHIMICLES BURT OFFICE IN WEST PALM BEACH FLA A TOTAL OF FIVE LAWYERS INCLUDING PARTTIME LAWYERS ARE INVOLVED IN THE LATEST MOVE I THINK IT IS JUST A NATURAL EVOLUTION IN THE PRACTICE OF LAW THAT YOUNG LAWYERS WANT TO START THEIR OWN FIRM SAID MR PUCILLO 40 YEARS OLD MR BURT COULDN'T BE REACHED FOR COMMENT MR PUCILLO SAID THAT AMONG THE CASES THAT THE TWO LAWYERS WOULD BE TAKING WITH THEM WERE CLASSACTION SUITS AGAINST AMERIFIRST BANK AND SOUTHEAST BANKING CORP TWO FAILED FLORIDA LENDING INSTITUTIONS NICHOLAS CHIMICLES SAID THE DEPARTURES HAD NOTHING TO DO WITH THE TERMINATION OF GREENFIELD & CHIMICLES AND DIDN'T SUGGEST ANY MAJOR PROBLEMS AT THE FIRM THE FIRM WAS RENAMED CHIMICLES JACOBSEN & TIKELLIS AND MAINTAINS 32 LAWYERS WITH OFFICES IN LOS ANGELES WILMINGTON DEL AND HAVERFORD I FEEL VERY BAD ABOUT IT MR GREENFIELD SAID OF HIS OLD FIRM A BUNCH OF THESE GUYS ARE MY FRIENDS AND IT IS A SHAME THAT IT IS NOT HOLDING TOGETHER HE SAID THE FIRM HAD ABOUT 45 ATTORNEYS JUST BEFORE HE DEPARTED LAST YEAR TWO OLDLINE FLORIDA FIRMS MACFARLANE FERGUSON BASED IN TAMPA AND AUSLEY MCMULLEN MCGEEHEE CAROTHERS & PROCTOR BASED IN TALLAHASSEE ARE JOINING FORCES LITIGATIONORIENTED AUSLEY MCMULLEN WITH 32 LAWYERS IN TALLAHASSEE IS THE OLDEST AND BIGGEST LAW FIRM IN THE STATE CAPITAL ITS CLIENTS INCLUDE SPRINT CORP TECO ENERGY INC AND CSX CORP MACFARLANE FERGUSON IS BEST KNOWN FOR REPRESENTING LYKES BROS INC A CLOSELY HELD COMPANY IN TAMPA WITH VAST INTERESTS IN FLORIDA AGRICULTURE MEAT PACKING SHIPPING AND ENERGY THE MERGER WHICH TAKES EFFECT FEB 1 IS EXPECTED TO BOOST MACFARLANE FERGUSON'S STATEWIDE PRESENCE BEFORE THE PACT THE FIRM HAD ONLY FOUR LAWYERS IN TALLAHASSEE THE COMBINED FIRMS TO BE KNOWN AS MACFARLANE AUSLEY FERGUSON & MCMULLEN WILL HAVE 110 LAWYERS WITH 32 IN TALLAHASSEE 14 IN CLEARWATER AND 64 IN TAMPA RICHARD B SCHMITT AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9401140089 940114 CITICORP PLANS 604 MILLION IN CHARGES FOR CUTBACKS 4THPERIOD NET JUMPED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP HOPING TO ACCELERATE ITS RECENT RECOVERY SAID IT WOULD TAKE 604 MILLION IN FOURTHQUARTER CHARGES TO SLASH OPERATIONS AND PERSONNEL FURTHER THE BANK ALSO SAID ITS NET INCOME FOR THE QUARTER MORE THAN DOUBLED THE NATION'S BIGGEST BANKING COMPANY WHICH WILL POST RECORD EARNINGS FOR 1993 AFTER INCURRING BILLIONS OF DOLLARS OF WRITEOFFS FOR BAD LOANS IS MAKING FURTHER CUTS NOW AMID GROWING COMPETITION IN THE BANKING INDUSTRY FOR EVERYTHING FROM CORPORATE LOANS TO CREDIT CARDS CITICORP GILDED THE CHARGE ANNOUNCEMENT BY SAYING IT WILL REPORT FOURTHQUARTER EARNINGS NEXT WEEK OF ABOUT 575 MILLION AFTER CHARGES AND ONETIME GAINS UP FROM 280 MILLION A YEAR EARLIER TOGETHER THE ANNOUNCEMENTS TRIGGERED A SHARP RALLY IN CITICORP SHARES WHICH CLIMBED 2125 TO 4075 A RECORD HIGH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THAT COMPARES WITH 850 A SHARE IN LATE 1991 WHEN THE BANK WAS IN THE MIDDLE OF WRITING OFF MOUNTAINS OF BAD DEBT PRIMARILY IN REAL ESTATE IN THE PAST TWO YEARS THE BANK HAS SHED 14000 EMPLOYEES AND 13 BILLION IN EXPENSES WHICH HAS HELPED RESTORE PROFITABILITY BUT IN THE THIRD QUARTER OF LAST YEAR EXPENSES BEGAN CREEPING HIGHER AS CITICORP FOUGHT TO DEFEND ITS SHARE OF THE HOTLY COMPETITIVE CREDITCARD MARKET THAT ALONG WITH LACKLUSTER REVENUE HAS PROMPTED THE COMPANY TO CUT COSTS AGAIN THE BANK SAID IT WOULD RECOUP THE 425 MILLION RESTRUCTURING CHARGE BY THE END OF NEXT YEAR THROUGH LOWER EXPENSES SOME EXECUTIVES BELIEVE AS MUCH AS 1 BILLION IN ANNUAL COSTS COULD EVENTUALLY BE CUT THEY NEED ROUND TWO OF COST SAVINGS SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO THOUGH CITICORP DIDN'T SAY WHERE THE CUTS WILL COME FROM THE BANK IS REACTING TO A SLOWGROWING ECONOMY AND A MATURE INDUSTRY RATHER THAN ANY IMPENDING CRISIS WHETHER IT'S CONSOLIDATING CUSTOMER SERVICE OPERATIONS OR CUTTING STAFF AT ITS BRANCHES CITICORP HOPES TO FEND OFF INCREASING COMPETITION FROM BOTH INSIDE AND OUTSIDE THE BANKING INDUSTRY OTHER BANKS SUCH AS FLEET FINANCIAL GROUP INC ARE TAKING SIMILAR MEASURES NOBODY'S EXPECTING A DRAMATIC TURNAROUND IN REVENUE GROWTH SO THEY'RE FINDING MORE WAYS TO STREAMLINE MR KRAUSHAAR SAID BECAUSE CITICORP DOESN'T HAVE A LONG HISTORY OF EXPENSE MANAGEMENT SOME ANALYSTS ARE HOPING MR STEFFEN CAN INSTILL MORE DISCIPLINE THE JOB NOW IS TO INSTITUTIONALIZE AN ATTITUDE TOWARD COSTS MR STEFFEN TOLD A MEETING OF CITIBANK'S NEW MANAGEMENT ASSOCIATES LATE LAST YEAR THE BANK NEEDS TO BE DOING MORE WITH WHAT WE HAVE THE RESTRUCTURINGS PROBABLY WILL RESULT IN THOUSANDS OF LAYOFFS AROUND THE COUNTRY OVER THE NEXT TWO YEARS ANALYSTS SAY THE BANK'S TOTAL WORK FORCE WAS ABOUT 81000 EMPLOYEES AS OF A YEAR AGO THE LAST TIME THE BANK DISCLOSED THE FIGURE IT'S MOST LIKELY THAT THE LAYOFFS WILL LARGELY BE AT THE US OPERATIONS PRIMARILY IN RETAIL BANKING BUT GLOBAL FINANCE WILL ALSO BE ASKED FOR ITS SHARE OF COST REDUCTIONS THE BANK HAS MORE THAN 1500 OFFICES AND BRANCHES IN THE US SOME OF WHICH COULD BE CONSOLIDATED WHILE THE SALE OF QUOTRON'S STOCKPRICE DATA BUSINESS TO REUTERS WASN'T PARTICULARLY SURPRISING CITICORP HAD BEEN LOSING MONEY ON THE FINANCIALINFORMATION SERVICE SINCE IT WAS PURCHASED IN 1986 THE 179 MILLION CHARGE RELATED TO THE SALE WAS UNEXPECTED CITICORP HAD ALREADY TAKEN SUBSTANTIAL CHARGES THAT ANALYSTS FIGURED HAD REDUCED THE VALUE OF QUOTRON ON CITICORP'S BOOKS TO VIRTUALLY NOTHING IN 1992 QUOTRON HAD A LOSS OF 40 MILLION COMPARED WITH A 503 MILLION LOSS A YEAR EARLIER QUOTRON HAD BEEN A BAD DECISION IT'S AN HONORABLE EXIT SAID BRENT ERENSEL BANKING ANALYST AT UBS SECURITIES IT'S A PROPITIOUS TIME TO PART WITH PAST MISTAKES CITICORP ALSO HAS THE CASH TO PAY FOR WRITEDOWNS GIVEN THE IMPROVED EARNINGS OUTLOOK WITHOUT GIVING DETAILS CITICORP SAID FOURTHQUARTER EARNINGS WOULD BE 106 A SHARE WELL ABOVE ANALYSTS' CONSENSUS ESTIMATES OF 94 CENTS A SHARE THE BANK'S PROFIT OF 280 MILLION A YEAR EARLIER AMOUNTED TO 53 CENTS A SHARE FOR THE YEAR CITICORP EXPECTS TO POST RECORD NET INCOME OF 22 BILLION OR 411 A SHARE INCLUDING A 300 MILLION ONETIME ACCOUNTING GAIN ASIDE FROM 107 MILLION IN GAINS FROM THE SALE OF BRAZILIAN DEBT THE BANKING COMPANY RECOGNIZED 200 MILLION IN DEFERRED TAX BENEFITS IN THE FOURTH QUARTER 9401140088 940114 RETAILING HOME SHOPPERS TO BE GIVEN YET ANOTHER SERVICE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL HOME SHOPPING NETWORK INC SAID IT WILL LAUNCH ANOTHER CHANNEL THIS SUMMER TO SELL MERCHANDISE FROM NAMEBRAND RETAILERS CATALOGERS AND CONSUMER PRODUCT COMPANIES HOME SHOPPING'S SERVICE CALLED THE TELEVISION SHOPPING MALL IS THE LATEST ENTRY IN THE INCREASINGLY CROWDED FIELD OF ELECTRONIC RETAILERS TRYING TO APPEAL TO AFFLUENT AUDIENCES QVC NETWORK INC OF WEST CHESTER PA IS LAUNCHING AN UPSCALE NETWORK CALLED Q2 IN MAY RETAILERS R H MACY & CO AND NORDSTROM INC ARE PLANNING TV AND INTERACTIVE SHOPPING SERVICES AND ON MONDAY CATALOG POWERHOUSE SPIEGEL INC IN PARTNERSHIP WITH ENTERTAINMENT AND CABLE GIANT TIME WARNER INC WILL UNVEIL DETAILS OF ITS CATALOGBASED HOMESHOPPING CHANNEL CATALOG 1 THEY WILL ANNOUNCE DEALS TO SELL MERCHANDISE FROM SHARPER IMAGE NEIMAN MARCUS CRATE & BARREL NATURE CO AND WILLIAMSSONOMA INC AS WELL AS SPIEGEL SUBSIDIARY EDDIE BAUER THE SPORTS AND OUTERWEAR MARKETER THE NEW SERVICES ALL FACE AN UPHILL CLIMB IN SELLING MERCHANDISE TO THE AFFLUENT SO FAR SERVICES HAVE MADE THEIR REVENUE FROM SELLING BARGAINPRICED ITEMS AIMED AT LOW TO MODERATEINCOME HOUSEHOLDS THERE HAVE BEEN BRIEF FORAYS FROM DESIGNER DIANE VON FURSTENBURG RETAILER SAKS FIFTH AVENUE AND THE MAKERS OF CITIZEN WATCHES BUT IT'S STILL A MEDIUM DOMINATED BY JEWELRY AND CLOTHING FROM LARGELY UNKNOWN VENDORS AND MANUFACTURERS HOME SHOPPING'S NATIONAL NETWORK TO BE LAUNCHED THIS SUMMER INITIALLY WILL REACH THREE MILLION CABLE HOMES AND 20 MILLION BROADCASTTV HOMES IT WILL PROVIDE A TELEVISED STAGE ON WHICH MARKETERS CAN CONTROL AND DESIGN TWOHOUR SHOWS FEATURING THEIR MERCHANDISE HOME SHOPPING BASED IN ST PETERSBURG FLA REACHES 60 MILLION TELEVISION HOUSEHOLDS QVC IS AVAILABLE IN 50 MILLION HOMES AFTER 10 YEARS ON THE AIR THE MAJOR HOMESHOPPING CHANNELS HAVE ABOUT 3 BILLION IN COMBINED SALES SOME OPTIMISTIC PROJECTIONS SAY THE BUSINESS COULD GROW TO 25 BILLION BY THE END OF THE DECADE BUT CRITICS CONTEND THAT PEOPLE WON'T ABANDON THE EXPERIENCE OF SHOPPING PARTICULARLY TO BUY BIGTICKET MERCHANDISE AND DESPITE BRISK SALES TV SHOPPING CHANNELS ARE PLAGUED BY HIGH RETURN RATES THE FIRST HURDLE FOR THE NEW SHOPPING CHANNELS WILL BE ACQUIRING SPACE ON CABLE SYSTEMS ALTHOUGH CABLESYSTEM OWNERS PLAN TO UPGRADE CHANNEL CAPACITY IN THE NEXT TWO TO FIVE YEARS THERE MAY NOT BE ENOUGH SLOTS ON THE TV CHANNEL LINEUP JUST HOW MANY SHOPPING CHANNELS WILL CABLE OPERATORS FEEL THEY NEED SAYS KIM HENDRIX SENIOR MANAGER AT THE MANAGEMENT HORIZONS DIVISION OF PRICE WATERHOUSE OPERATORS FACE THE ISSUE OF PROGRAMMING MIX ON THEIR SYSTEMS THEY MAY TAKE TWO OR THREE SHOPPING CHANNELS BUT I DOUBT THEY TAKE MORE THAN THAT BUT MS HENDRIX LIKE OTHER INDUSTRY ANALYSTS BELIEVES THE NEW UPSCALE SHOPPING CHANNELS CAN SIGNIFICANTLY EXPAND THE AUDIENCE FOR ELECTRONIC RETAILING OUR DATA SHOW A GOOD PERCENTAGE OF AFFLUENT CUSTOMERS AREN'T FREQUENT SHOPPERS ON TV BUT ONCE YOU PUT SOMETHING OUT THERE THEY FIND WORTH BUYING YOU WILL SEE NUMBERS GROW MS HENDRIX SAYS A NEW SHOPPING CHANNEL COULD RESTORE SOME LUSTER TO HOME SHOPPING NETWORK WHOSE FOUNDER AND CHAIRMAN ROY SPEER RESIGNED LAST YEAR AMID CHARGES OF RECEIVING KICKBACKS FROM VENDORS THE NEW PRESIDENT AND CHIEF EXECUTIVE FORMER TURNER BROADCASTING SYSTEM INC EXECUTIVE GERALD F HOGAN HAS HIRED RETAILING AND MERCHANDISING EXPERTS FROM SEVERAL INDUSTRIES CUT COSTS AND STREAMLINED OPERATIONS AND IMPROVED THE MIX OF MERCHANDISE ON ITS BASIC SHOPPING CHANNELS THE TELEVISION SHOPPING MALL WILL HAVE A DIFFERENT LOOK FROM HSN'S PRIMARY SERVICE HOME SHOPPING CLUB MR HOGAN SAID THE TELEVISED MALL WILL ALLOW MARKETERS TO CREATE THEIR OWN STORES ON AIR EACH WITH A DISTINCT LOOK AND SENSIBILITY IN CONTRAST TO THE INSTUDIO 24HOUR SHOPPING CLUB THE HSN MALL COULD PERMIT MORE ELABORATE PRODUCTION AND VISUAL EFFECTS SINCE THE SHOW COULD BE LIVE TAPED OR BOTH EACH OF THE 35 MERCHANTS WILL BE ABLE TO CRAFT THE LOOK AND FEEL OF THEIR STORE TO REPRESENT THE IMAGE THEY WANT HE SAID MR HOGAN SAID HSN HAS HAD INFORMAL TALKS ABOUT THE TELEVISION SHOPPING MALL WITH MARKETERS INCLUDING CATALOGER HANOVER DIRECT INC OFFPRICE RETAILER MARSHALLS AND MACY OVER TIME THE COMPETING UPSCALE CHANNELS COULD FIND THEMSELVES IN A BATTLE FOR EXCLUSIVE RIGHTS TO CERTAIN RETAILERS OR MARKETERS WHILE MR HOGAN'S ELECTRONIC MALL ISN'T SIGNING COMPANIES TO EXCLUSIVE ARRANGEMENTS SPIEGEL SAYS IT IS SIGNING MARKETERS TO APPEAR ONLY ON ITS CATALOG 1 FOR THE TEST PERIOD CATALOG 1 WILL DEBUT AS A TEST ON VARIOUS TIME WARNEROWNED CABLE SYSTEMS NATIONWIDE WITH A NATIONAL ROLLOUT PLANNED FOR FALL JOHN J SHEA SPIEGEL PRESIDENT AND CHIEF EXECUTIVE ALSO PLANS TO HAVE HIS SHOPPING CHANNEL LOOK DIFFERENT FROM TYPICAL HOMESHOPPING CHANNELS SPIEGEL PLANS TO FEATURE MODELS ON RUNWAYS OR EVEN SWIMSUITS MODELED ON LOCATION IN HAWAII THERE DEFINITELY WON'T BE ANY TALKING HEADS MR SHEA SAYS THIS WILL BE VERY DIFFERENT 9401140087 940114 CANADIAN GOVERNMENT BOND SALE OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 15 BILLION CANADIAN DOLLARS US113 BILLION OF NONCALLABLE 8 BONDS DUE JUNE 1 2023 PROCEEDS WILL BE APPLIED TOWARD THE REDEMPTION OF C26 BILLION OF GOVERNMENT BONDS MATURING FEB 1 9401140086 940114 CORPORATE FOCUS AETNA MULLS ANOTHER REVAMPING AMID SLUGGISH PROFITS BIG INSURER MAY UNLOAD BUSINESSES AND LAY OFF MORE WORKERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL IS THE OTHER SHOE ABOUT TO DROP AT AETNA LIFE & CASUALTY CO FOUR YEARS AGO THE COMPANY SPLIT ITSELF INTO 15 BUSINESS UNITS THAT REPORT PROFITS INDEPENDENTLY INSIDE THE COMPANY AT THE TIME AETNA SAID IT WOULD KEEP THE OPERATIONS THAT PERFORMED WELL AND EITHER FIX OR DISPOSE OF THE ONES THAT DIDN'T NOW IT LOOKS AS IF AETNA WHICH HAS TURNED IN SLUGGISH PROFITS FOR YEARS IS GETTING READY TO MAKE SOME MOVES EARLIER THIS WEEK AETNA'S BOARD MET IN A SPECIAL SESSION TO DISCUSS A STUDY PREPARED BY A CONSULTING FIRM THE BOSTON CONSULTING GROUP WHICH RECOMMENDED WHAT AETNA SHOULD DO AETNA BASED IN HARTFORD CONN SAID NO DECISIONS HAVE BEEN MADE AND DECLINED TO COMMENT FURTHER BUT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS OPTIONS INCLUDE DECENTRALIZING ITS ORGANIZATION AND SPINNING OFF BUSINESSES IT WOULD NOT BE SURPRISING TO SEE THEM GET OUT OF ONE OR TWO BUSINESSES IN THE NEXT YEAR OR TWO SAID ALAN ZIMMERMAN A PRUDENTIAL SECURITIES ANALYST ANOTHER LIKELY OUTCOME IS LAYING OFF EMPLOYEES ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS ONE FIGURE THAT AETNA IS SAID TO BE CONSIDERING IS 4000 LAYOFFS THE COMPANY CURRENTLY HAS 42300 EMPLOYEES ANALYSTS EXPECT AETNA TO ANNOUNCE SOME SORT OF MOVE AROUND THE TIME IT REPORTS YEAREND EARNINGS ON FEB 9 ANY LAYOFFS AT AETNA WOULD BE SURPRISING GIVEN ITS EARLIER STAFF CUTS IN OCTOBER 1990 AETNA LAID OFF 3000 WORKERS WHEN IT CREATED THE BUSINESS UNITS IN JUNE 1992 FOUR MONTHS AFTER THE INSTALLING OF AETNA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD COMPTON THE COMPANY ANNOUNCED AN ADDITIONAL 4800 LAYOFFS THE CUTS HAVE IMPROVED AETNA'S PROFIT BUT ITS 7 RETURN ON EQUITY PROFITS DIVIDED BY NET WORTH IS WELL BELOW THE 12 TO 15 DEMANDED BY INVESTORS NOT SURPRISINGLY THE COMPANY'S STOCK PRICE HAS BEEN A DISAPPOINTMENT ALTHOUGH AETNA STOCK ROSE 298 LAST YEAR COMPARED WITH A 193 RISE IN THE DOW JONES INSURANCE INDEX IN THE PRECEDING FIVE YEARS AETNA STOCK ROSE ONLY 39 COMPARED WITH A 101 RISE IN THE INDEX A MAJOR PROBLEM FOR AETNA IN ADDITION TO HIGH COSTS IS ITS PORTFOLIO OF BAD REALESTATE LOANS AETNA HAS 157 BILLION OF REALESTATE LOANS WHICH REPRESENT ABOUT A QUARTER OF ITS INVESTED ASSETS OF THOSE MORTGAGES 15 BILLION ARE 60 DAYS PAST DUE OR IN THE PROCESS OF FORECLOSURE THE INABILITY OF THE MORTGAGE PORTFOLIO TO EARN A DECENT RETURN HAS BEEN A DRAG ON AETNA'S PROFITS FOR YEARS ANALYSTS SAY AETNA COULD FIX THE PROBLEM BY TAKING A LUMPSUM WRITEOFF AND BY ACCOUNTING FOR ITS PENSION BUSINESS AS A DISCONTINUED OPERATION WHICH IS WHAT EQUITABLE COS DID BEFORE GOING PUBLIC IN 1992 BUT THEY ADD THAT AETNA IS UNLIKELY TO DO THAT BECAUSE LIKE OTHER INSURERS IT STILL HOPES FOR A TURNAROUND IN THE COMMERCIAL REALESTATE MARKET ANOTHER PROBLEM IS LOSSES ON POLLUTION CLAIMS LIKE OTHER INSURERS AETNA IS PLAGUED BY POLLUTION LOSSES ON COMMERCIAL LIABILITY POLICIES WRITTEN IN THE 1950S 1960S AND 1970S SUCH CLAIMS AGAINST INSURERS USUALLY END UP IN COURT BUT AS WITH OTHER INSURERS AETNA HAS HAD ONLY LIMITED SUCCESS IN AVOIDING PAYMENT IN 1992'S FOURTH QUARTER AETNA POSTED A 180 MILLION CHARGE TO ESTABLISH RESERVES FOR CERTAIN ASBESTOS AND OTHER ENVIRONMENTAL EXPOSURES MORE CHARGES ARE EXPECTED ANALYSTS AND INVESTMENT BANKERS SAY THE BEST THING FOR THAT BUSINESS WOULD BE A REVISION IN THE FEDERAL SUPERFUND LAW THAT GOVERNS POLLUTION LIABILITY THE CLINTON ADMINISTRATION IS READYING A COMPROMISE SOLUTION THAT PROMISES INSURERS SOME RELIEF IN RETURN FOR IMPOSING A 500 MILLION ANNUAL TAX ON THE PROPERTY AND CASUALTY INSURANCE INDUSTRY WITHOUT SOME CHANGE IN THE LAW INSURERS COULD BE OVERWHELMED ACCORDING TO A REPORT LAST YEAR BY THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS TILLINGHAST AN ACTUARIAL CONSULTING FIRM ESTIMATES THE POTENTIAL INSURANCE LOSSES IN THE NEXT FEW DECADES COULD AMOUNT TO AN EYEPOPPING 100 BILLION ONE OPTION FOR AETNA IN PROPERTY AND CASUALTY IS TO GET OUT OF SOME LINES OF INSURANCE FOR INSTANCE IT COULD FURTHER DOWNSIZE ITS HOMEOWNERS AND AUTOMOBILE BUSINESS IT IS NOW IN THE PROCESS OF WITHDRAWING FROM THE AUTOMOBILE INSURANCE BUSINESS IN CALIFORNIA SPECULATION ABOUT AETNA SLIMMING DOWN EVEN FURTHER IN PROPERTY AND CASUALTY HEIGHTENED LAST MONTH AFTER THE RESIGINATION OF DAVID KOCHER WHO RAN THE BUSINESS I WOULDN'T BE SURPRISED TO SEE SOME MAJOR CHANGES IN PROPERTY AND CASUALTY BUSINESS SAID NORTHINGTON PARTNERS ANALYST ALICE CORNISH AETNA'S BIGGEST STRENGTH IS ITS INDIVIDUAL LIFE INSURANCE AND ANNUITY OPERATION INCLUDING ITS OVERSEAS BUSINESSES AND ITS HEALTHCARE BUSINESS FOR EXAMPLE THE LIFE AND HEALTH OPERATION EARNED 92 MILLION IN THE THIRD QUARTER UP FROM 88 MILLION A YEAR EARLIER AETNA IS RUMORED TO BE CONSIDERING SPINNING OFF THE BUSINESS TO STOCKHOLDERS IN ORDER TO LET SHAREHOLDERS REALIZE THE FULL VALUE BUT PEOPLE FAMILIAR WITH THE SITUATION SAY AETNA IS UNLIKELY TO MAKE SUCH A MAJOR MOVE A REORGANIZATION AT AETNA WOULD COME JUST WEEKS AFTER MR COMPTON SET UP A HORSE RACE TO DECIDE WHO WILL SUCCEED HIM WHEN HE RETIRES IN 1997 THE CONTENDERS ARE GARY BENANAV WHO HEADS THE COMPANY'S LIFE INSURANCE BUSINESS AND SUCCEEDED MR KOCHER AS HEAD OF PROPERTY AND CASUALTY INSURANCE DANIEL KEARNEY CHIEF OF INVESTMENTS AND PENSION PRODUCTS AND JAMES MCLANE WHO RUNS AETNA'S HEALTHCARE OPERATION MR BENANAV 48 YEARS OLD IS BELIEVED TO BE THE FRONTRUNNER CITING MR COMPTON'S RETIREMENT DATE SANFORD C BERNSTEIN ANALYST WESTON HICKS SAID MR COMPTON IS FIGHTING AGAINST THE CLOCK IF HE'S GOING TO DO SOMETHING HE BETTER DO IT QUICK HE SAID AETNA'S PROBLEMS ARE SIMILAR TO THOSE FACED BY THE OTHER MAJOR MULTILINE INSURERS SUCH AS CIGNA CORP TRAVELERSINC'S TRAVELERS INSURANCE UNIT AND ITT CORP'S HARTFORD INSURANCE GROUP EACH COMPANY HAS SEVERAL STRENGTHS BUT EACH HAS EXPOSURE TO PROBLEMS PARTICULARLY THE OPENENDED QUESTION ABOUT HOW BIG ARE THE ULTIMATE LOSSES ON POLLUTION CLAIMS ANALYSTS POINT OUT THAT EACH OF THE COMPANIES HAS A HISTORY OF TRYING TO BE ALL THINGS TO ALL PEOPLE OFFERING EVERY TYPE OF INSURANCE THAT A CUSTOMER COULD POSSIBLY WANT THEY ALSO WORK THROUGH INDEPENDENT AGENTS WHICH GIVES THEM LESS CONTROL AND HIGHER EXPENSES THAN COMPANIES THAT SELL INSURANCE DIRECTLY TO CUSTOMERS SUCH AS STATE FARM MUTUAL AUTOMOBILE INSURANCE CO AND ALLSTATE CORP A UNIT OF SEARS ROEBUCK & CO NOWDAYS THE MOST SUCCESSFUL COMPANIES ANALYSTS SAY ARE THOSE THAT SPECIALIZE AND PAY STRICT ATTENTION TO COSTS AMERICAN INTERNATIONAL GROUP INC AND CHUBB CORP ARE TWO COMPANIES THAT FIT THE DESCRIPTION CONSULTANTS SAY COMPANIES SUCH AS AETNA NOT TO MENTION THE BIG MUTUAL LIFE INSURERS SUCH AS METROPOLITAN LIFE INSURANCE CO AND PRUDENTIAL INSURANCE CO OF AMERICA TEND TO RESPOND SLOWLY TO COMPETITIVE PRESSURES BECAUSE THEY ARE RICH IN CAPITAL CAPITAL GIVES THEM FLEXIBILITY BUT ALSO MAKES THEM SLOWER TO RESPOND TO CHANGE IF THEY HAVE A TREMENDOUS AMOUNT IN CAPITAL IT MIGHT TAKE 50 YEARS TO SHAKE THEM UP SAID ONE INVESTMENT BANKER WHO ASKED NOT TO BE IDENTIFIED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AETNA SHARES CLOSED AT 5550 DOWN 625 CENTS 9401140085 940114 INTERNATIONAL BODY SHOP INTERNATIONAL SALES LONDON BODY SHOP INTERNATIONAL PLC SAID SAMESTORE UK SALES ROSE 4 AND TOTAL SALES ROSE 6 IN THE NINEWEEK PERIOD ENDED DEC THE UK RETAILER SAID ITS US SHOPS PRODUCED SAMESTORE SALES GROWTH OF 10 WITH TOTAL SALES UP 47 IN THE YEARTODATE US SAMESTORE SALES HAVE RISEN 6 AND TOTAL SALES HAVE GROWN 46 9401140084 940114 POTOMAC WATCH AS ANGELL LEAVES WILL OLD DEVIL INFLATION RETURN BY PAUL A GIGOT THE ECONOMY IS ROCKING INFLATION SEEMS TO BE REELING AND PRESIDENT CLINTON IS CROWING THAT'S POLITICS BUT IT'S ALSO A REASON TO HEED WAYNE ANGELL AS HE RIDES INTO THE BELTWAY SUNSET MR CLINTON WILL MISS THIS REAGAN APPOINTEE MORE THAN HE KNOWS FOR EIGHT YEARS MR ANGELL HAS HELD ONE OF THOSE RARE JOBS THAT MATTER HERE AS A GOVERNOR OF THE FEDERAL RESERVE ALONG THE WAY HE BECAME THE CONSCIENCE OF THE INFLATION HAWKS WHO'VE PRODUCED THE LOW INTEREST RATES NOW SPURRING ECONOMIC GROWTH THEY'VE BEEN SO SUCCESSFUL THAT THE BEAVIS & BUTTHEAD GENERATION HAS NO IDEA THAT INFLATION DROVE JIMMY CARTER FROM POWER ASSUMING IT'S EVER HEARD OF JIMMY CARTER WE'RE SHOWING THE FRUITS OF PURSUING PRICELEVEL STABILITY DECLARES MR ANGELL IN A FAREWELL INTERVIEW BEFORE HIS TERM EXPIRES NEXT MONTH WE'RE SEEING GAINS IN LABOR PRODUCTIVITY WE HAVEN'T SEEN SINCE THE 1950S AND '60S THOSE GAINS IN TURN HERALD REAL WAGE INCREASES THAT CAN GET PRESIDENTS REELECTED AT LEAST IN ECONOMICS BILL CLINTON MAY YET PROVE WOODY ALLEN'S MAXIM THAT 90 OF LIFE IS JUST SHOWING UP MR ANGELL CALLS THE REDUCTION OF CORE INFLATION TO 3 TODAY FROM 12 THE FED'S MAIN ACHIEVEMENT SINCE 1980 BACK IN 1986 HE TOLD AUDIENCES HIS GOAL WAS TO SEE 30YEAR HOME MORTGAGES REACH 7 BY THE END OF HIS TENURE THEY THOUGHT THAT WAS UNBELIEVABLE THE FORMER KANSAS WHEAT FARMER RECALLS AFTER CLIMBING TO ALMOST 12 IN 1987 MORTGAGES HIT 674 LAST OCTOBER OF COURSE CLINTONIANS ATTRIBUTE THIS DECLINE TO DR BILL'S MIRACLE TAX POTION MR ANGELL DOESN'T SIP THAT MOONSHINE LET'S SEE HE SAYS THE FEDERAL DEBT IS ABOUT 45 TRILLION AND THE 1993 BUDGET CLAIMED TO CUT GROWTH IN THAT DEBT BY A MERE 400 BILLION OVER FIVE YEARS HOW MUCH DOES IT AFFECT THE INTEREST RATE ON THAT DEBT HE ASKS SARDONICALLY IF THE DEBT WILL GROW ONLY BY 1 TRILLION OVER FIVE YEARS INSTEAD OF 14 TRILLION NOT MUCH AT ALL WHAT REALLY AFFECTS INTEREST RATES HE ADDS IS THE CREDIBILITY OF THE FEDERAL RESERVE IN PROMISING NOT TO INFLATE THAT DEBT AWAY ON THIS POINT MR ANGELL DOES GIVE MR CLINTON CREDIT UNLIKE GEORGE BUSH MR CLINTON HAS MOSTLY REFRAINED FROM PRODDING THE FED TO GUN THE MONEY SUPPLY THUS INVESTORS FEAR INFLATION LESS AND SO ARE WILLING TO ACCEPT A LOWER INTEREST RATE AS AN INFLATION PREMIUM SO THERE WAS MORE CONTRIBUTION BY THE PRESENT ADMINISTRATION BY WHAT IT DIDN'T DO THAN BY WHAT IT DID DO HE SAYS MR ANGELL HAS MADE HIS OWN FED MARK BY PROMOTING A WAY OF SETTING MONETARY POLICY THAT LOOKS MAINLY AT MARKET PRICES HE CALLS IT PRICELEVEL TARGETING THIS MEANS MORE THAN LOOKING OUT THE REARVIEW MIRROR AT LAST YEAR'S 27 INFLATION RATE INSTEAD MR ANGELL LOOKS AT INDICATORS THAT WARN OF FUTURE INFLATIONCOMMODITY PRICES EXCHANGE RATES AND ESPECIALLY GOLD THE KANSAN ADMITS THAT AT FIRST THESE IDEAS WERE THOUGHT OF AS A HAREBRAINED SCHEME BUT OVER TIME OTHER FED GOVERNORS BEGAN TO NOTICE CHAIRMAN ALAN GREENSPAN IN PARTICULAR IS KNOWN TO KEEP A BEADY EYE ON GOLD YOU DON'T WANT TO PUT ALL YOUR EGGS IN THE COMMODITY BASKET SAYS FED VICE CHAIRMAN DAVID MULLINS BUT IT'S FAIR TO SAY WE ALL NOW LOOK AT A NUMBER OF THOSE THINGS INCLUDING COMMODITIES AND GOLD JUST HOW MUCH THIS ANGELL LEGACY WILL SURVIVE HIS DEPARTURE IS HARD TO READ I'M OPTIMISTIC MR ANGELL SAYS BUT I'M NOT AS CONFIDENT AS I WOULD LIKE TO BE PERHAPS THIS IS BECAUSE MOST OF LAST YEAR HE FLASHED A WARNING ABOUT FUTURE INFLATION YET THE FED HASN'T TRIED TO HEAD IT OFF BY RAISING INTEREST RATES EVEN A BLIP MR ANGELL THINKS LOW OIL PRICES MAY BE SENDING BETTER INFLATION SIGNALS THAN ARE WARRANTED BY OTHER PRICES SO MR ANGELL DISSENTED FOUR TIMES FROM FED POLICY LAST YEAR INCLUDING A CLARION CALL AT HIS FINAL MEETING IN LATE DECEMBER MR ANGELL WON'T CONFIRM THIS STILLSECRET DECEMBER VOTE BUT HE DOES SAY HE'S WORRIED THAT THE 1995 PRICE LEVEL IS INCREASINGLY GETTING OUT OF OUR CONTROL HE OFFERS A LAYMAN'S INFLATION GUIDE IF SHORTTERM RATES RISE NO HIGHER THAN 5 FROM 3 NOW AT THE PEAK OF THIS ECONOMIC EXPANSION THEN THAT'S AN A GRADE FOR THE FED BUT IF HIS WORRIES PROVE TRUE THEN INTEREST RATES COULD RISE MUCH HIGHER IN 1995 THE WORST POSSIBLE TIME FOR BILL CLINTON'S REELECTION ANOTHER REASON TO WORRY IS MR ANGELL'S APPARENT REPLACEMENT GEORGE PERRY OF THE BROOKINGS INSTITUTION IF MR ANGELL IS A HAWK THEN MR PERRY IS A DOVE MR ANGELL WATCHES GOLD MR PERRY SCOFFS AT IT MR ANGELL HAS BEEN A BANKER AND FARMER MR PERRY IS A LIFETIME ACADEMIC MR PERRY BELIEVES IN THE OLD ELIXIR OF TIGHT FISCAL POLICY TAX INCREASES OFFSET BY EASIER WHICH CAN BECOME INFLATIONARY MONEY THIS IS WHAT GAVE US THE 1970S IN POLITICS IT PAYS TO BE LUCKY AND BILL CLINTON'S BEST BLINDEST LUCK HAS BEEN TO INHERIT A CONSERVATIVE FEDERAL RESERVE THE FED'S CREDIBILITY HARD WON SINCE THE DEBACLE OF THE 1970S HAS HELPED TO BLUNT FEARS THAT MR CLINTON WOULD BE ANOTHER JIMMY CARTER BUT THE PERRY CHOICE SUGGESTS MR CLINTON DOESN'T KNOW HOW GOOD HE'S HAD IT LET'S HOPE THE OTHER FED GOVERNORS HAVE ABSORBED ENOUGH OF MR ANGELL'S ANTIINFLATION CHARACTER TO REMIND THE PRESIDENT 9401140083 940114 REVIEW & OUTLOOK EDITORIAL ON ETHICS THE FOSTER TEST IN AN INDEPENDENT INVESTIGATION OF THE WHITEWATER MESS THE PURPOSE HAS TO BE REASSURANCE THAT NO MAJOR SCANDAL LIES HIDDEN AUDITING FINANCIAL DEALS FROM 1985 WILL NOT BE ENOUGH THE TEST OF A SERIOUS PROBE WILL BE DOES IT ILLUMINATE EVENTS SURROUNDING VINCENT FOSTER'S DEATH LAST JULY 20 WE SUGGESTED THIS SAME INVESTIGATION IMMEDIATELY AFTER THE APPARENT SUICIDE OF THE DEPUTY WHITE HOUSE COUNSEL AND CLINTON FRIEND OF COURSE AND WERE CASTIGATED FOR CRUELTY TOWARD THE DECEASED AND THE PRESIDENCY EVEN LAST WEEK WHITE HOUSE STONEWALLER PAUL BEGALA COMPLAINED ABOUT TRYING TO POLITICIZE THE TRAGIC DEATH OF A TALENTED PUBLIC SERVANT AS NIGHT FOLLOWS DAY THIS MEANS THE FOSTER TRAGEDY DEMANDS INVESTIGATION ABOVE ALL REVELATIONS ABOUT THE HANDLING OF MR FOSTER'S OFFICE PAPERS REMEMBER IS WHAT BROUGHT WHITEWATER TO A BOIL THE SHIFTING EXPLANATIONS OF THE FOSTER EVENTS DISPLAY THE SAME GAMES WITH THE TRUTH THAT IS THE HEART OF THE PRESENT WIDESPREAD CONCERN UNTIL THE FOSTER DEATH IS SERIOUSLY STUDIED A BANQUO'S GHOST WILL STALK NOT ONLY THE INDEPENDENT INVESTIGATION BUT THE NEXT THREE YEARS OF THE CLINTON ADMINISTRATION BY NOW OF COURSE WE KNOW THAT MR FOSTER WAS WORKING ON WHITEWATER SHORTLY BEFORE HIS DEATH HE HAD SERVED AS THE CLINTONS' LAWYER WHEN IN DECEMBER 1992 THEY SEVERED THEIR TIES WITH WHITEWATER DEVELOPMENT CO BY SELLING THEIR INTEREST TO JAMES MCDOUGAL FOR 1000 MR FOSTER ALSO DIRECTED THE PREPARATION OF DELINQUENT TAX RETURNS FOR WHITEWATER ITSELF WHICH HE DELIVERED TO MR MCDOUGAL'S LAWYER LAST JUNE 21 THIS WAS PART OF MR FOSTER'S MORE GENERAL WORK ON THE CLINTON FINANCES HE WAS PREPARING A BLIND TRUST FOR THEIR ASSETS A TRUST AGREEMENT WAS FINALIZED THREE DAYS AFTER HIS DEATH SINCE OTHER RECENT PRESIDENTS HAVE COMPLETED SUCH TRUSTS PRIOR TO INAUGURATION THIS DELAY WAS THE SUBJECT OF EDITORIAL CRITICISM BY A NUMBER OF PUBLICATIONS THE DES MOINES REGISTER FOR EXAMPLE WROTE THAT MRS CLINTON'S HEALTHCARE STOCKS SHOULD HAVE BEEN PUT IN TRUST DENNIS RYERSON EDITOR OF THE REGISTER'S EDITORIAL PAGES TELLS US HE RECEIVED A POLITE PHONE CALL FROM MR FOSTER ELABORATING REASONS FOR DELAY IT'S DOUBTFUL THAT THE FOSTER FILES WILL BE A ROSETTA STONE FOR WHITEWATER IF ONLY BECAUSE MANY ESSENTIAL FILES WERE KNOWN TO BE MISSING AS EARLY AS THE FIRST STORIES BY JEFF GERTH OF THE NEW YORK TIMES DURING THE 1992 CAMPAIGN MR MCDOUGAL SAYS AND THE CLINTONS DENY THAT THE MISSING FILES WERE DELIVERED TO THE ARKANSAS GOVERNOR'S MANSION STILL THE HANDLING OF THE FOSTER FILES WOULD EXCITE THE INTEREST OF ANY RESPONSIBLE INVESTIGATOR THE WHITE HOUSE SAYS THAT AFTER A JULY 22 REVIEW BY WHITE HOUSE COUNSEL BERNARD NUSSBAUM FILES ON THE FIRST COUPLE WERE SENT TO THEIR PRIVATE LAWYER FOSTER'S PERSONAL PAPERS TO HIS FAMILY'S LAWYER AND ITEMS PERTAINING TO HIS OFFICIAL DUTIES WERE SHOWN TO INVESTIGATORS PROBING HIS DEATH BUT IT'S BEEN WIDELY REPORTED MOST RECENTLY IN YESTERDAY'S NEW YORK TIMES THAT THE WHITEWATER PAPERS WERE REMOVED ON JULY 20 NOT JULY 22 ROBERT LANGSTON CHIEF OF THE PARK POLICE INVESTIGATING THE DEATH WAS QUOTED TO THIS EFFECT AS EARLY AS AUGUST 10 HIS PRESS SPOKESMAN TOLD THE TIMES THAT EITHER MR NUSSBAUM OR AN ASSISTANT HAD REMOVED A CARTON OF FILES AND LATER RETURNED IT I DON'T HAVE ANY IDEA WHETHER THEY WERE ALL BROUGHT BACK OR NOT I COULD ONLY TRUST THAT THEY WERE BUT I WOULD NEVER BET MONEY ON IT OR SAY FOR SURE THE WHITE HOUSE HAS NOW CONFIRMED THAT CONTRARY TO INITIAL SUGGESTIONS AT LEAST THREE PEOPLE VISITED MR FOSTER'S OFFICE WITHIN HOURS OF HIS DEATH MR NUSSBAUM MAGGIE WILLIAMS AND PATSY THOMASSON MS WILLIAMS IS CHIEF OF STAFF TO MRS CLINTON WHO WAS AT THE TIME IN LITTLE ROCK AND MISS THOMASSON IS A SPECIAL ASSISTANT TO THE PRESIDENT THE ACCOUNTS DO NOT MAKE CLEAR WHETHER THE VISITS WERE SEPARATE OR IN CONJUNCTION THE WASHINGTON TIMES HAS DETAILED THE BACKGROUNDS OF THE TWO ADDITIONAL AIDES MS WILLIAMS HAD BEEN COMMUNICATIONS DIRECTOR AT THE CHILDREN'S DEFENSE FUND AND PRESS DEPUTY AT THE DEMOCRATIC NATIONAL COMMITTEE MISS THOMASSON A LONGTIME ARKANSAS POLITICAL FIGURE WAS ONCE EXECUTIVE VICE PRESIDENT AT LASATER & CO WHICH EARNED SOME 16 MILLION IN COMMISSIONS FOR HANDLING ARKANSAS STATE BOND ISSUES THE STATE CONTRACTS WERE AWARDED WHILE DAN R LASATER HEAD OF THE FIRM AND A HEAVY FINANCIAL CONTRIBUTOR TO CLINTON CAMPAIGNS WAS UNDER INVESTIGATION FOR COCAINE DISTRIBUTION HE WAS CONVICTED AND SENTENCED TO 30 MONTHS IN PRISON IN 1986 AN UNINDICTED COCONSPIRATOR WAS ROGER CLINTON THE PRESIDENT'S BROTHER AND A LASATER EMPLOYEE WHO PLEADED GUILTY IN AN EARLIER COCAINE CASE MISS THOMASSON WASN'T IMPLICATED IN THE DRUG CASES AND GOVERNOR CLINTON NAMED HER TO THE POLITICALLY POWERFUL POST OF CHAIRMAN OF THE ARKANSAS HIGHWAY COMMISSION AS THE EARLIEST REPORTS CONCEDED THE OFFICE WAS ALSO VISITED THE NEXT MORNING BY A SECRETARY EITHER MR FOSTER'S OR MR NUSSBAUM'S THERE IS ALSO CONTROVERSY OVER OTHER FOSTER PAPERS INCLUDING A DIARY INVESTIGATORS INITIALLY EXAMINED BRIEFLY AND WOULD LIKE TO STUDY IN MORE DETAIL MR FOSTER'S DEATH AND ACCOMPANYING EVENTS CAME AT A CURIOUS JUNCTURE IN THE CLINTON ADMINISTRATION THE ZOE BAIRD AND KIMBA WOOD NOMINATIONS HAD COLLAPSED DAVID GERGEN HAD JOINED THE ADMINISTRATION ON MAY 29 MR FOSTER WAS INVOLVED IN LITIGATION OVER THE SECRECY OF THE FIRST LADY'S HEALTH TASK FORCE THE WHITE HOUSE REPORT ON THE TRAVEL OFFICE FIASCO WAS ISSUED JULY 2 IN THE HOLIDAY LULL BUT CONGRESSMAN JACK BROOKS SUGGESTED AN INVESTIGATION MR FOSTER SOUGHT A PERSONAL LAWYER AND A LENGTHY NEW YORK TIMES REPORT SAID HE TOLD HIS WIFE THEY MIGHT BE BETTER OFF IN LITTLE ROCK ON HIS WAY BACK FROM A VACATION IN HAWAII PRESIDENT CLINTON SPENT THE JULY 1718 WEEKEND IN LITTLE ROCK HIS ITINERARY THERE SO CURIOUS IT WAS RECORDED IN A PAGEONE STORY IN THE NEW YORK TIMES ON MONDAY JULY 19 INCLUDED A FOURHOUR DINNER WITH DAVID EDWARDS A FRIEND FROM HIS TIME IN ENGLAND AND NOW A LITTLE ROCK INVESTMENT ADVISER MR EDWARDS IS KNOWN FOR HIS GOURMET COOKING AND ARAB CONNECTIONS HAVING BEEN INSTRUMENTAL IN A 23 MILLION CONTRIBUTION FROM THE KING OF SAUDI ARABIA TO ESTABLISH A MIDDLE EASTERN STUDIES PROGRAM AT THE UNIVERSITY OF ARKANSAS BEFORE SETTING UP HIS OWN FIRM WITH HIS BROTHER HE'D WORKED FOR STEPHENS INC AND BEFORE THAT HAD BEEN A CONTROVERSIAL JUNIOR EXECUTIVE IN THE EUROPEAN OPERATIONS OF CITIBANK THAT MONDAY THE PRESIDENT SPOKE TO MR FOSTER FOR 20 MINUTES THE WHITE HOUSE SAYS THE DEPUTY COUNSEL DECLINED THE PRESIDENT'S INVITATION TO A MOVIE IN THE FAMILY QUARTERS THE PRESIDENT HAS SAID THAT AT THE TIME OF THE CALL HE WAS NOT REALLY AWARE THAT SOME OF MR FOSTER'S ASSOCIATES HAD COME TO CONSIDER HIM QUITE DISTRESSED MR FOSTER HAD SPENT THE WEEKEND AT THE MARYLAND SHORE WITH HIS WIFE FOR MOST OF SATURDAY AND SUNDAY THEY JOINED WITH TWO OTHER COUPLES ASSOCIATE ATTORNEY GENERAL AND FORMER ROSE PARTNER WEBSTER HUBBELL AND FORMER DEPUTY WHITE HOUSE COUNSEL MICHAEL CARDOZO AND THEIR WIVES MR HUBBELL JOINED THE GATHERING AFTER A SATURDAY MORNING MEETING TO FIRE WILLIAM SESSIONS AS DIRECTOR OF THE FBI ON TUESDAY THE DAY OF MR FOSTER'S DEATH THE WHITE HOUSE ANNOUNCED THE APPOINTMENT OF LOUIS FREEH AS FBI DIRECTOR THE SAME DAY BACK IN LITTLE ROCK THE CHICAGO TRIBUNE REPORTED A FEDERAL MAGISTRATE ISSUED A SEARCH WARRANT FOR THE OFFICES OF DAVID HALE WHO LATER TRIED TO PLEA BARGAIN BY IMPLICATING THE PRESIDENT IN A SUSPECT LOAN THUS REOPENING THE WHITEWATER ISSUE DENVER LAWYER JAMES LYONS WHOSE REPORT PUT THE ISSUE TO REST DURING THE CAMPAIGN TOLD THE TRIBUNE HE'D TALKED SEVERAL TIMES TO MR FOSTER SHORTLY BEFORE HIS DEATH BUT DENIED IT WAS ABOUT WHITEWATER THE WASHINGTON TIMES HAS REPORTED THAT MR FOSTER'S PHONE LOGS ON THE MORNING OF HIS DEATH INCLUDE CALLS FROM MR LYONS AND FROM SOMEONE AT THE ROSE LAW FIRM IN LITTLE ROCK ON JULY 26 NEARLY A WEEK AFTER THE DEATH A MEMBER OF THE COUNSEL'S OFFICE FOUND TORNUP SCRAPS APPARENTLY OVERLOOKED IN AN EARLIER SEARCH AT THE BOTTOM OF MR FOSTER'S BRIEFCASE THEY ARE PIECED TOGETHER INTO A NOTE LISTING A SERIES OF THINGS TROUBLING MR FOSTER ONLY ONE SMUDGED PALMPRINT WAS FOUND ON THE PAPER AND IT WAS HELD 30 HOURS BY THE WHITE HOUSE BEFORE OFFICIAL INVESTIGATORS WERE NOTIFIED THE NOTE COMPLAINED THAT WSJ EDITORS LIE WITHOUT CONSEQUENCE AND SPECIFIED CONTROVERSIES SUCH AS EXPENSES FOR REDECORATING THE WHITE HOUSE BUT CONTAINED NO ALLUSION TO WHITEWATER LET US SPECIFY LEST COMPILING THESE FACTS GETS US ACCUSED OF THE DREAD CRIME OF INNUENDO THAT WE DO NOT KNOW WHAT TO MAKE OF ALL THIS BUT WE DO THINK IT'S HIGH TIME SOMEONE FOUND OUT WE ALSO THINK THAT BACK ON JULY 21 WHEN PRESIDENT CLINTON SAID WE'LL JUST HAVE TO LIVE WITH SOMETHING ELSE WE CAN'T UNDERSTAND HE ALREADY KNEW A GREAT DEAL THAT YOU PROBABLY HAVE JUST LEARNED 9401140082 940114 BOARD ACTS TO END PAYTOPLAY' GIFTS BY MUNI DEALERS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD FINALLY UNVEILED ITS PROPOSED RULE TO END PAYTOPLAY POLITICAL GIFTS BY MUNICIPAL BOND DEALERS AND DEPICTED THE CONTROVERSIAL RULE AS IMMUNE FROM CONSTITUTIONAL CHALLENGE THE BOARD WISHES TO SEVER ANY CONNECTION BETWEEN CONTRIBUTIONS AND MUNICIPAL SECURITIES BUSINESS THE MSRB SAID IN ITS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IT SAID PROBLEMS ASSOCIATED WITH POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS UNDERMINE INVESTOR CONFIDENCE IN THE MUNICIPAL SECURITIES MARKET THE MSRB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT SAID IT BELIEVES THERE HAVE BEEN NUMEROUS INSTANCES WHERE DEALERS HAVE WON BUSINESS BASED ON THEIR POLITICAL CONTRIBUTIONS THE SEC WHICH MUST APPROVE THE RULE BEFORE IT GOES INTO EFFECT WILL ASK FOR PUBLIC COMMENTS FOR 21 DAYS AFTER THE PROPOSAL IS PUBLISHED IN THE FEDERAL REGISTER AN SEC SPOKESWOMAN SAID SEC CHAIRMAN ARTHUR LEVITT COMMENDED THE BOARD FOR ITS WORK AND SAID HE LOOKS FORWARD TO REVIEWING THE RULE AND PUBLIC RESPONSE TO IT THE SEC'S FASTTRACK COMMENT PERIOD ANGERED CRITICS OF THE PROPOSED RULE MILTON WELLS DIRECTOR OF FEDERAL RELATIONS FOR THE NATIONAL ASSOCIATION OF STATE TREASURERS CALLED A 21DAY COMMENT PERIOD TOTALLY INSUFFICIENT GIVEN THE SERIOUSNESS OF THE CONSTITUTIONAL AND OTHER QUESTIONS POSED BY THE PROPOSED RULE THE RULE WOULD BAR A DEALER FROM DOING BUSINESS WITH A BONDISSUING JURISDICTION WITHIN TWO YEARS AFTER ANY CONTRIBUTION IS MADE TO OFFICIALS OF THE JURISDICTION THE RULE COVERS CONTRIBUTIONS BY THE DEALER BY ANY OF ITS MUNICIPAL FINANCE PROFESSIONALS OR BY ANY POLITICAL ACTION COMMITTEE CONTROLLED BY THE DEALER OR ITS MUNI PROFESSIONALS AN EXCEPTION WOULD ALLOW MUNI PROFESSIONALS TO CONTRIBUTE UP TO 250 TO CANDIDATES IN RACES WHERE THEY CAN VOTE IT WOULD COVER GIFTS MADE ON OR AFTER APRIL 1 1994 9401140081 940114 INTERNATIONAL ITALIAN PREMIER OFFERS RESIGNATION SETS STAGE FOR VOTE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ITALY'S LONG MARCH TOWARD POLITICAL RENEWAL APPEARED TO CLEAR ITS LAST HURDLE AS PRIME MINISTER CARLO CIAMPI OFFERED HIS RESIGNATION YESTERDAY PAVING THE WAY FOR EARLY GENERAL ELECTIONS MR CIAMPI FORMER GOVERNOR OF THE BANK OF ITALY AND THE COUNTRY'S FIRST NONPOLITICAL PREMIER SUBMITTED HIS RESIGNATION TO PRESIDENT OSCAR LUIGI SCALFARO A DAY AFTER PARLIAMENT BEGAN DEBATE ON A NOCONFIDENCE MOTION ON HIS EIGHTMONTHOLD GOVERNMENT THE PRIME MINISTER 73 YEARS OLD WAS APPOINTED IN APRIL AS A CRISIS MANAGER TO OVERSEE POLITICAL AND ECONOMIC REFORM AFTER THE COUNTRY'S DRAMATIC CORRUPTION SCANDAL CRIPPLED THE NEARLY HALFCENTURY RULE OF THE GOVERNING COALITION LED BY THE CHRISTIAN DEMOCRATS MR CIAMPI TOLD THE CHAMBER OF DEPUTIES ON WEDNESDAY THAT HE WAS READY TO STEP ASIDE NOW THAT HIS GOVERNMENT HAD ACCOMPLISHED ITS ORIGINAL GOALS OF COMPLETING ELECTORAL REFORM AND PASSING THIS YEAR'S BUDGET POLITICAL COMMENTATORS SAID MR SCALFARO IS LIKELY TO DISSOLVE PARLIAMENT OVER THE WEEKEND AND ASK MR CIAMPI TO CONTINUE AS CARETAKER PREMIER UNTIL ELECTIONS WHICH COULD COME AS EARLY AS MARCH 27 ALTHOUGH THE PRESIDENT ALSO COULD REJECT MR CIAMPI'S RESIGNATION OFFER MR SCALFARO REPEATEDLY HAS STRESSED THAT NEW ELECTIONS WOULD BE CALLED ONCE LEGISLATION REFORMING THE ELECTORAL SYSTEM WAS COMPLETED PARLIAMENT APPROVED SUCH A MEASURE IN LATE DECEMBER MR CIAMPI WHO CONSIDERED HIS JOB TRANSITIONAL FROM THE OUTSET WAS CONSIDERED A FIGURE OF STABILITY DURING ITALY'S CONVULSIVE POLITICAL SCANDALS AND REVELED IN HIS ROLE AS THE COUNTRY'S FIRST TECHNOCRAT PREMIER I WORK HERE IN THE SAME MANNER I WORKED AT THE BANK OF ITALY WITHOUT THE DISTRACTIONS OF POLITICAL ALCHEMY HE SAID IN AN INTERVIEW LAST YEAR HE HAD BEEN APPLAUDED BY THE INTERNATIONAL FINANCIAL COMMUNITY FOR HIS EFFORTS TO TRIM THE COUNTRY'S BALLOONING BUDGET DEFICIT ACCELERATE ITS LONGSTALLED PRIVATIZATION PROGRAM AND COMPLETE VITAL ELECTORAL REFORM LEGISLATION OPPOSITION PARTIES LED BY RADICAL MARCO PANELLA HAD PROPOSED THE NOCONFIDENCE MOTION AS A MEANS OF SPEEDING THE PROCESS OF DISSOLVING PARLIAMENT AND CALLING NEW ELECTIONS MR PANELLA WITHDREW THE MOTION YESTERDAY BUT MR CIAMPI NEVERTHELESS DECIDED TO OFFER HIS RESIGNATION THE OPPOSITION PARTIES THE FORMER COMMUNISTS NOW KNOWN AS THE DEMOCRATIC PARTY OF THE LEFT THE FEDERALIST NORTHERN LEAGUE AND THE NEOFASCIST ITALIAN SOCIAL MOVEMENT HAVE BEEN CLAMORING FOR EARLY ELECTIONS AFTER MUNICIPAL VOTING LAST MONTH DEMONSTRATED A TOTAL COLLAPSE OF SUPPORT FOR THE FORMER RULING PARTIES ALL ITALIANS WANT ELECTIONS AS QUICKLY AS POSSIBLE NORTHERN LEAGUE LEADER UMBERTO BOSSI SAID THURSDAY TO DRAG ALONG THE PRESENT LEGISLATURE WOULD MEAN GOING TOWARD A QUARRELSOME AGONY SAID MASSIMO D'ALEMA A LEADER OF THE FORMER COMMUNISTS MIRED IN THE CORRUPTION SCANDAL THE CENTRIST CHRISTIAN DEMOCRATS AND THEIR COALITION PARTNERS ARE EXPECTED TO SUFFER SIGNIFICANT LOSSES IN THE NATIONAL VOTE BUT THE POLITICAL LANDSCAPE REMAINS HIGHLY CONFUSED NEW ELECTORAL LAWS PASSED AFTER THE SUCCESS OF A POPULAR REFERENDUM LAST APRIL CALL FOR 75 OF PARLIAMENT TO BE ELECTED THROUGH DIRECT ELECTIONS WHILE THE REMAINING QUARTER WILL BE ELECTED THROUGH THE OLD PROPORTIONAL REPRESENTATION SYSTEM IN WHICH A PARTY IS ALLOCATED SEATS BASED ON ITS TALLY AS A RESULT POLITICAL PARTIES HAVE BEEN MADLY JOCKEYING TO FORM NEW ALLIANCES ABLE TO REACH A MAJORITY UNDER THE NEW SYSTEM 9401140080 940114 ECONOMY HEALTH OUTLAYS ARE MODERATING NEW DATA SHOW MEDICARE MEDICAID TO COST LESS THAN PROJECTIONS OVER NEXT FIVE YEARS BY HILARY STOUT AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THERE'S MORE GOOD NEWS ON HEALTH COSTS BOTH PRIVATE AND PUBLIC MEDICAL SPENDING APPEARS TO BE MODERATING FEDERAL OFFICIALS NOW CALCULATE THAT THE GOVERNMENT'S TWO BIG BUDGETBUSTING HEALTH PROGRAMS MEDICARE AND MEDICAID WILL COST ABOUT 45 BILLION LESS OVER THE NEXT FIVE FISCAL YEARS THAN THEY PROJECTED IN THE FALL AND THE BUREAU OF LABOR STATISTICS SAYS MEDICALCARE PRICES ROSE JUST 54 LAST YEAR THE SMALLEST INCREASE SINCE 1973 THOUGH STILL TWICE THE OVERALL INFLATION RATE WHILE THE TEMPERING OF HEATH SPENDING IS WELCOME SOME PEOPLE IN THE CLINTON ADMINISTRATION AND ON CAPITOL HILL WORRY THAT IT COULD TAKE AWAY SOME OF THE POLITICAL MOMENTUM FOR OVERHAULING THE US HEALTH SYSTEM ALREADY SOME REPUBLICANS ARE ARGUING THAT THERE ISN'T A HEALTH CRISIS IN THE US A VIEW ECHOED LAST WEEKEND BY SEN DANIEL PATRICK MOYNIHAN THE NEW YORK DEMOCRAT WHO HEADS THE SENATE FINANCE COMMITTEE THE GOVERNMENT NOW EXPECTS TO SPEND ABOUT 20 BILLION LESS ON MEDICARE BETWEEN FISCAL 1995 AND 2000 ACCORDING TO AN ADMINISTRATION OFFICIAL SPENDING FOR MEDICARE THE FEDERAL HEALTH INSURANCE PROGRAM FOR ELDERLY AND DISABLED AMERICANS CURRENTLY TOTALS ABOUT 150 BILLION A YEAR THE REDUCTION IS LARGELY DUE TO LOWERTHANEXPECTED PAYMENTS TO PHYSICIANS TWO YEARS AGO WHEN MEDICARE STARTED SETTING FEES FOR DOCTORS FEDERAL HEALTH OFFICIALS PROJECTED MANY PHYSICIANS WOULD INCREASE THEIR VOLUME OF SERVICES IN ORDER TO MAKE UP FOR LOWER REIMBURSEMENT RATES BUT MEDICARE OFFICIALS NOW SAY VOLUME HASN'T INCREASED NEARLY AS MUCH AS THEY ANTICIPATED ADMINISTRATION OFFICIALS ALSO PROJECT THAT FEDERAL SPENDING ON MEDICAID THE FEDERALSTATE HEALTH INSURANCE PROGRAM FOR THE POOR WILL BE ABOUT 25 BILLION LOWER THAN PROJECTED FOR THE PERIOD THE FEDERAL GOVERNMENT SPENDS ABOUT 90 BILLION ON MEDICAID EACH YEAR OFFICIALS ATTRIBUTE THE SAVINGS LARGELY TO STATE EFFORTS TO REIN IN MEDICAID COSTS AND ALSO TO A LEVELING OF MEDICAID ENROLLMENT DUE TO A PICKUP IN THE ECONOMY THE NEW COST PROJECTIONS WILL BE CONTAINED IN THE FISCAL 1995 BUDGET PRESIDENT CLINTON PLANS TO SUBMIT TO CONGRESS IN EARLY FEBRUARY THE LABOR DEPARTMENT SAID MEDICALCARE PRICES ROSE AT A 44 ANNUAL PACE IN THE FOURTH QUARTER MEDICALCARE PRICE INFLATION AS MEASURED BY THE GOVERNMENT HAS FALLEN FROM 96 IN 1990 TO 79 IN 1991 TO 66 IN 1992 ALTHOUGH SOME ECONOMISTS SAY THE BUREAU'S MEASURE OF HEALTH PRICES IS FLAWED CORPORATE HEALTHCARE OFFICIALS AND ANALYSTS AGREE THAT PRICE INCREASES HAVE SLOWED BY FOCUSING ATTENTION ON HEALTHCARE COSTS ANALYSTS SAY PRESIDENT AND MRS CLINTON MAY BE DISCOURAGING THE INDUSTRY FROM PUSHING UP PRICES AT THE SAME TIME CORPORATE AND GOVERNMENT EFFORTS TO RESTRAIN HEALTHCARE COST INCREASES FINALLY MAY BE BEARING FRUIT THE GOVERNMENT'S INDEX OF MEDICALCARE COMMODITIES WHICH INCLUDES PRESCRIPTION DRUGS AND SUPPLIES ROSE 31 IN 1993 COMPARED WITH 52 IN 1992 CHARGES FOR DOCTORS' AND OTHER PROFESSIONAL SERVICES WERE UP 45 COMPARED WITH 57 IN 1992 AND HOSPITAL CHARGES WERE UP 76 COMPARED WITH 88 IN 1992 9401140078 940114 LIKE OLD TIMES AN ERA OF LOW INFLATION CHANGES THE CALCULUS FOR BUYERS AND SELLERS PRICES ROSE 27 LAST YEAR ACCELERATION IS UNLIKELY BUT THERE IS A DOWNSIDE THE EFFECT ON CAPITAL GAINS BY LUCINDA HARPER AND FRED R BLEAKLEY STAFF REPORTERS OF THE WALL STREET JOURNAL IF A NEW AGE OF LOW INFLATION IS AT HAND AND IT APPEARS TO BE IT MAY TAKE SOME GETTING USED TO FOR THE PAST QUARTERCENTURY AMERICAN ECONOMIC DECISIONMAKING HAS HINGED ON A BELIEF THAT INFLATION JUST HAPPENS BUSINESSES DEPENDED ON PRICE INCREASES TO KEEP PROFIT MARGINS GROWING YOUNG FAMILIES BOUGHT HOUSES THEY COULDN'T AFFORD WITH THE SURE KNOWLEDGE THAT THEY COULD GROW INTO THE MONTHLY MORTGAGE PAYMENTS AS INFLATION LIFTED THEIR WAGES SOME INVESTORS HELD ONTO ASSETS BECAUSE SELLING THEM MEANT PAYING TAXES ON PROFITS THAT WHEN CORRECTED FOR INFLATION DIDN'T EXIST WORKERS FELT RICHER BECAUSE THEIR PAYCHECKS LOOKED LARGER EVERY YEAR EVEN IF THEY DIDN'T ALWAYS KEEP UP WITH PRICES NO LONGER FURNITURE MAKER ETHAN ALLEN INC HASN'T RAISED PRICES IN THREE YEARS AND HASN'T ANY PLANS TO DO SO DESPITE GROWING DEMAND FOR ITS PRODUCTS WE HAVE GONE THE OTHER WAY OUR AVERAGE PRICE IS DOWN ABOUT 15 FROM THREE TO FIVE YEARS AGO SAYS CHAIRMAN M FAROOQ KATHWARI THE DANBURY CONN COMPANY HASN'T ANY CHOICE BECAUSE OF COMPETITION AND TO KEEP PROFIT MARGINS GROWING HE SAYS THE COMPANY HAS TURNED TO SIMPLER DESIGNS AND TECHNOLOGY EFFICIENCIES WITH LOW INFLATION RATES FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN OBSERVES HOPEFULLY BUSINESSES SEEKING TO INCREASE THEIR PROFIT MARGINS CAN DO SO ONLY BY ENHANCING EFFICIENCY THE US INFLATION OUTLOOK IS AS PROMISING AS IT HAS BEEN IN DECADES AND THAT IS GOING TO CHANGE THE CALCULUS OF ECONOMIC LIFE FOR WORKERS HOME BUYERS AND OTHER CONSUMERS WITH INFLATION RUNNING BELOW 3 A YEAR A 35 RAISE MAY ACTUALLY BE WORTH MORE BUT FEEL WORSE THAN THE 45 RAISES OF YESTERYEAR WHEN INFLATION WAS HIGHER PSYCHOLOGICALLY THERE IS A DEPRESSING EFFECT ON WORKERS WHEN THEY GET ONLY A SMALL INCREASE SAYS GORDON BREHM EXECUTIVE ASSISTANT AT THE UNITED PAPERWORKERS INTERNATIONAL UNION THE ECONOMY HAS BEEN RECOVERING FROM RECESSION FOR ALMOST THREE YEARS AND APPEARS TO HAVE GROWN AT BETTER THAN A 4 ANNUAL RATE IN THE FOURTH QUARTER YET PRESSURE TO PUSH UP PRICES IS NEGLIGIBLE THE BUREAU OF LABOR STATISTICS SAID YESTERDAY THAT CONSUMER PRICES INCREASED JUST 27 LAST YEAR THE SMALLEST INCREASE SINCE SLUMPING OIL PRICES DROVE DOWN INFLATION IN 1986 EXCLUDING OFTENVOLATILE FOOD AND ENERGY PRICES AS ECONOMISTS FREQUENTLY DO TO GAUGE THE UNDERLYING RATE OF INFLATION CONSUMER PRICES WERE UP 32 THE LAST TIME THIS MEASURE OF INFLATION WAS SO LOW RICHARD NIXON WAS PRESIDENT EVEN HEALTHCARE PRICES THE INFLATIONARY BUGABOO FOR DECADES ARE BEHAVING BETTER RISING 54 LAST YEAR LESS THAN ANY YEAR SINCE 1973 THE LABOR DEPARTMENT ALSO SAID CONSUMER PRICES INCHED UP 02 IN DECEMBER THE SAME AS IN NOVEMBER A 11 TUMBLE IN ENERGY PRICES HELPED KEEP OVERALL INFLATION IN CHECK BUT EVEN EXCLUDING THE FOOD AND ENERGY SECTORS PRICES ROSE JUST 03 LAST MONTH APPAREL PRICES DIPPED 07 SUGGESTING MORE THAN THE USUAL HOLIDAY DISCOUNTING AND TRANSPORTATION PRICES FELL 02 MAINLY BECAUSE OF BIG CUTS IN GASOLINE PRICES MEDICAL AND ENTERTAINMENT PRICES POSTED MODEST GAINS GROSS WEEKLY EARNINGS OF US WORKERS WERE UNCHANGED IN DECEMBER AFTER ADJUSTING FOR INFLATION AFTER RISING 02 IN NOVEMBER WHILE HOURLY EARNINGS WENT UP 02 THE PREVAILING WISDOM AMONG ECONOMISTS IS THAT THE ECONOMY WILL GROW AT ABOUT A 3 PACE THIS YEAR BUT THAT INFLATION WON'T ACCELERATE IN THE PAST PEOPLE HAVE TENDED TO ASSUME THAT A PICKUP IN GROWTH INEVITABLY BROUGHT WITH IT A PICKUP IN INFLATION THE LATEST SURVEY OF 51 ECONOMISTS BY THE BLUE CHIP ECONOMIC INDICATORS SHOWS THAT THEY EXPECT CONSUMER PRICES TO RISE ONLY 28 THIS YEAR THE MOST PESSIMISTIC PREDICTION IS FOR 35 THE OPTIMISM IS BASED ON SEVERAL ARGUMENTS UNEMPLOYMENT IN THE US IS FALLING AND BUSINESSES ARE OPERATING CLOSER TO FULL CAPACITY SO IT SHOULD GET EASIER FOR FIRMS TO RAISE PRICES BUT THERE REMAINS SO MUCH SLACK SO MANY JOBLESS WORKERS AND IDLE FACTORIES IN AN INCREASINGLY GLOBAL ECONOMY THAT US FIRMS WILL FIND IT TOUGH TO PUSH UP PRICES SIGNIFICANTLY WE THOUGHT ABOUT PRICE INCREASES SAYS JOHN BALLARD CHIEF EXECUTIVE OF TCI INTERNATIONAL INC A SUNNYVALE CALIF ENGINEERING COMPANY BUT OUR RESEARCH OF COMPETITORS AND WHAT THE MARKET WOULD BEAR TOLD US IT WAS NOT WORTH PURSUING AT THE SAME TIME AN IMPROVING PRODUCTIVITY TREND IF IT LASTS GIVES THE ECONOMY MORE ROOM TO GROW BEFORE BOTTLENECKS MAKE IT EASY FOR PRODUCERS TO RAISE PRICES GROWTH IN MONEY AND CREDIT BROADLY DEFINED IS UP A BIT BUT STILL QUITE SUBDUED THE PRICES FOR OIL AND MANY OTHER COMMODITIES ARE IN A SLUMP AND THE BOND MARKET EVER VIGILANT ABOUT INFLATION HAS RISEN DRAMATICALLY A SUGGESTION THAT INVESTORS ARE SIDING WITH THE OPTIMISTS THERE IS EVEN A MARKET FOR 50YEAR BONDS AGAIN EDWARD YARDENI OF CJ LAWRENCE/ DEUTSCHE BANK SECURITIES AN OPTIMIST'S OPTIMIST WHO PREDICTS A 2 INFLATION RATE THIS YEAR FIGURES THE END OF THE COLD WAR HELPS TOO IT DRAMATICALLY INCREASED THE ABILITY TO ACCESS CHEAP LABOR IN RUSSIA EAST EUROPE AND CHINA HE SAYS PLUS LOWER TRADE BARRIERS AND INCREASED INDUSTRIALIZATION IN COUNTRIES SUCH AS INDONESIA TEND TO KEEP WAGE LEVELS LOW BUT AS ALWAYS THERE ARE DOUBTERS AFTER ALL THE PAST COUPLE OF YEARS PROVE ONLY THAT INFLATION WILL BEHAVE WHEN THE ECONOMY STILL HAS SUBSTANTIAL SLACK MY INFLATION NUMBERS FOR THE FIRST TIME PUT PRICING POWER BACK IN THE HANDS OF SUPPLIERS INSTEAD OF PURCHASERS SAYS GAIL FOSLER CHIEF ECONOMIST OF THE CONFERENCE BOARD A NEW YORK RESEARCH GROUP SHE SEES CONSUMER PRICES RISING AT A 4 CLIP BY YEAR'S END AND PREDICTS THEY WILL RISE 44 IN 1995 MAKING HER THE MOST PESSIMISTIC OF THE BLUE CHIP ECONOMISTS MANY COMPANIES RAISED PRICES EARLY LAST YEAR ONLY TO REVERSE COURSE IN WHOLE OR PART AFTER BOTH THE US AND OVERSEAS ECONOMIES FALTERED COMPETITORS DIDN'T FOLLOW OR BIG CUSTOMERS BALKED AS THE ECONOMY IMPROVES IT WILL BE EASIER FOR COMPANIES TO MAKE PRICE INCREASES STICK STEEL COMPANIES AND TRUCKERS STARTED THE YEAR INCREASING PRICES FOR THEIR PRODUCTS AND SERVICES AS DID SOME BROKERAGE FIRMS JAPANESE CAR COMPANIES AND THE UNITED PARCEL SERVICE DUPONT SAYS IT WILL BE PUSHING FOR HIGHER CHEMICAL PRICES AS YEARLY NEGOTIATIONS ON NEW CONTRACTS BEGIN WITH CUSTOMERS LATER THIS MONTH GOVERNMENT INFLATION REPORTS FOR THE FIRST FEW MONTHS OF THE YEAR MAY SEND A FALSE SIGNAL THAT INFLATION IS RISING A RESULT ECONOMISTS SAY OF FLAWS IN THE BUREAU OF LABOR STATISTICS' CALCULATION METHODS THE PREVAILING CONSENSUS IS THAT INFLATION WON'T INCREASE MUCH FROM ITS CURRENT PACE AND MIGHT EVEN INCH DOWN TOWARD 25 WHICH IS PRETTY CLOSE TO NO INFLATION AT ALL ONCE THE VAGARIES OF MEASURING PRICE INCREASES ARE CONSIDERED THAT MEANS THE FED WON'T BE UNDER IMMEDIATE PRESSURE TO RAISE INTEREST RATES TO SLOW THE ECONOMY DOWN THAT GIVES THE ECONOMY MORE RUNNING SPACE BUT BEYOND THAT HAPPY CONSEQUENCE THE LOWINFLATION WORLD WILL ALSO REQUIRE SOME PAINFUL ADJUSTMENTS WAGE INCREASES WILL LOOK SMALLER WORKERS RECEIVING A 4 PAY RAISE IN TIMES OF 5 INFLATION MAY HAVE BEEN FALLING BEHIND BUT THEY ENJOYED A HEFTIER PAYCHECK IN THE CURRENT LOWINFLATION WORLD WAGE INCREASES WILL SEEM SKIMPIER EVEN THOUGH THEY MIGHT BE PUTTING WORKERS AHEAD OF THE INFLATION CURVE ECONOMISTS ALSO WORRY THAT IT WILL BE HARDER FOR EMPLOYERS TO CUT WAGES FOR WORKERS WHOSE SKILLS AREN'T IN DEMAND IN THE PAST A PAY FREEZE OR SLIGHT INCREASE AMOUNTED TO A REAL CUT THE ECONOMICS OF BUYING A HOUSE ARE CHANGING HOUSING PRICES OF COURSE ARE DRIVEN BY DEMOGRAPHICS SUPPLY AND DEMAND AND OTHER FACTORS BUT ONE FACTOR BEHIND THE HUGE RUNUP IN HOUSING PRICES IN THE 1980S WAS INFLATION FOR MANY MIDDLECLASS FAMILIES WITH MORTGAGES AND MODEST SAVINGS HOUSES WERE THE PERFECT HEDGE AGAINST INFLATION EVEN IF THE APPRECIATION WASN'T MUCH BETTER THAN THE INFLATION RATE IT CREATED A SENSE OF WEALTH THAT ISN'T LIKELY TO RECUR ANY TIME SOON DENNIS DUGAN AN ARCHITECT ON MANHATTAN'S WEST SIDE SAYS LOW INFLATION MEANS TO HIM THAT I'M EXCITED ABOUT GETTING RID OF REAL ESTATE WHEREAS IN THE '70S AND '80S I WAS DOING ALL I COULD TO ACCUMULATE IT OVER THE PAST 20 YEARS HE HAS HELD ONTO EVERY APARTMENT OR CONDO HE HAS LIVED IN RENTING OUT THE PROPERTIES AFTER HE MOVED OUT NOW HE SAYS WHEN I WANT TO BUY A NEW APARTMENT I SELL TWO OF THE OLD ONES THAT'S A DIRECT RESULT OF MY ASSUMPTION THAT LOW INFLATION WILL LAST AND REALESTATE VALUES ARE GOING TO BE FLAT STICKER SHOCK MAY OCCUR IN OTHER REALMS AS WELL AT LEAST UNTIL THE PUBLIC GETS ACCUSTOMED TO A LOW INFLATION RATE AND A LOW INTERESTRATE ENVIRONMENT LOW INFLATION MEANS SMALLER INCREASES IN THE COSTOFLIVING ADJUSTMENTS IN SOCIAL SECURITY CHECKS THAT CAN ANGER THE BENEFICIARIES EVEN THOUGH THE PRICES THEY PAY RISE SLOWLY SIMILARLY A 4 YIELD ON A CERTIFICATE OF DEPOSIT SEEMS PUNY EVEN THOUGH IT IS ACTUALLY WORTH MORE THAN A 6 YIELD WAS IN A TIME OF HIGHER INFLATION AS A RESULT MANY PEOPLE HAVE HAULED MONEY OUT OF LOWYIELDING MONEYMARKET FUNDS AND INTO RISKIER MUTUAL FUNDS BUSINESSES WILL DEVOTE LESS TIME TO HEDGING AGAINST PRICE INCREASES MOVING CASH AROUND TO AVOID THE COST OF IDLE BALANCES IN NONINTERESTBEARING ACCOUNTS AND OTHER LARGELY UNPRODUCTIVE ACTIVITY IT FREES YOU UP TO DO OTHER THINGS SAYS ROGER HEINS WHO MANAGES MONEY FOR MILES INC A 65 BILLIONAYEAR PHARMACEUTICAL AND CHEMICAL COMPANY IN PITTSBURGH ECONOMIST STANLEY FISCHER OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY HAS ESTIMATED THAT AT AN INFLATION RATE OF 5 THE US WASTES ABOUT 18 BILLION 03 OF ITS TOTAL OUTPUT ON SUCH ACTIVITIES THE TAX INCENTIVES FOR SAVING AND INVESTING MAY IMPROVE THE TAX CODE UNFAIRLY IN THE EYES OF MANY ECONOMISTS TAXES PROFITS EVEN IF THEY AREN'T TRULY PROFITS ONCE ONE ADJUSTS FOR INFLATION THE NET EFFECT OF OUR TAX SYSTEM COUPLED WITH CURRENT LEVELS OF INFLATION IS TO MAKE THE EFFECTIVE TAX RATE ON REAL OR INFLATIONADJUSTED CAPITAL GAINS WELL OVER 50 SAYS FED GOVERNOR LAWRENCE LINDSEY FOR YEARS THERE HAS BEEN TALK IN CONGRESS BUT ONLY TALK OF ALTERING THE CAPITALGAINS TAX TO CORRECT FOR THIS A LOW INFLATION RATE MAKES THE ISSUE MOOT IMAGINE BUYING A SHARE OF STOCK FOR 100 THAT INCREASES 5 A YEAR IN AN ERA OF 4 ANNUAL INFLATION AFTER 18 YEARS THE STOCK IS WORTH 241 SELL IT AND AFTER THE GOVERNMENT CLAIMS ITS 28 CAPITALGAINS TAX YOU ARE LEFT WITH AN AFTERTAX PROFIT OF 102 DOESN'T SOUND TOO BAD UNTIL YOU FIGURE IN INFLATION WITH 4 INFLATION A STOCK HAS TO DOUBLE IN VALUE IN 18 YEARS JUST TO KEEP UP WITH INFLATION ADJUST FOR INFLATION AND THE AFTERTAX RETURN AFTER 18 YEARS AMOUNTS TO A MEASLY 2 CONSIDER THE SAME SCENARIO WITH 2 INFLATION AND A STOCK THAT CLIMBS 3 A YEAR THE SAME 1 MARGIN ABOVE INFLATION AFTER 18 YEARS THE STOCK IS WORTH 170 AND THE AFTERTAX PROFIT AMOUNTS TO 50 ADJUST FOR INFLATION AGAIN AND THE RETURN TURNS OUT TO BE A MUCH MORE PLEASANT 8 THE SAME LOGIC APPLIES TO THE REWARDS FOR SAVING BECAUSE THE GOVERNMENT TAXES INTEREST AS IT IS PAID EVEN IF IT IS JUST ENOUGH TO COMPENSATE FOR INFLATION BUSINESSES SHOULD BE MORE WILLING TO INVEST FED VICE CHAIRMAN DAVID MULLINS FIGURES THAT LOW STABLE INFLATION RATES SHOULD KEEP DOWN WHAT ECONOMISTS CALL REAL LONGTERM INTEREST RATES THAT IS INTEREST RATES ADJUSTED FOR INFLATION LOW INFLATION HE REASONS WILL REDUCE WHAT IS KNOWN AS THE INFLATION PREMIUM THAT EXTRA MARGIN THAT LENDERS AND INVESTORS DEMAND TO PROTECT AGAINST THE RISK OF INFLATION AND LOW INTEREST RATES ENCOURAGE BUSINESSES TO BUY NEW EQUIPMENT AND COMPUTERS AND BUILD NEW PLANTS AND BUILDINGS THE KEY TO GROWTH IN INCOMES IS GROWTH IN PRODUCTIVITY MR MULLINS SAYS AND THE KEY TO GROWTH IN PRODUCTIVITY IS INVESTMENT AND THE KEY TO INVESTMENT IS LOW LOW REAL INTEREST RATES AND THE KEY TO LOW REAL RATES IS LOW INFLATION THE PECULIARITIES OF THE TAX CODE SHOULD REINFORCE THIS INCENTIVE TO INVESTMENT A BUSINESS THAT BUYS A MACHINE CAN'T DEDUCT ITS COST ALL AT ONCE WHEN IT COMPUTES ITS TAXES INSTEAD IT DEDUCTS THE COST OVER A PERIOD OF YEARS THE MORE INFLATION THE LESS VALUABLE THESE DEPRECIATION DEDUCTIONS IN THE LATER YEARS THE LOWER THE INFLATION RATE THEREFORE THE GREATER THEIR VALUE AND THE MORE ATTRACTIVE AN INVESTMENT SHOULD BE HERE ARE THE PRICE INDEXES 19821984=100 AND PERCENTAGE CHANGES FOR THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR DECEMBER THE PERCENTAGE CHANGES FROM THE PREVIOUS MONTH ARE SEASONALLY ADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM DECEMBER 1992 WERE 9401140076 940114 FLOSUN NEGOTIATES CLEANUP OF RUNOFF FROM EVERGLADES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERIOR DEPARTMENT REACHED AN AGREEMENT WITH ONE OF TWO LARGE SUGAR COMPANIES ON CLEANING AGRICULTURAL RUNOFF FROM THE FLORIDA EVERGLADES IN THE AGREEMENT FLOSUN INC WEST PALM BEACH FLA WILL DROP A LAWSUIT AGAINST THE DEPARTMENT AND THE FLORIDA STATE GOVERNMENT OVER ENVIRONMENTAL REGULATION OF THE EVERGLADES IT ALSO PLEDGED TO PAY OVER 20 YEARS AS MUCH AS 100 MILLION TO FINANCE CLEANUP OF PHOSPHOROUS THAT HAS WASHED OFF FARMLAND AND INTO THE AREA'S WATERWAYS THE AREA'S OTHER MAJOR SUGAR COMPANY US SUGAR CORP DECLINED TO JOIN THE AGREEMENT AND WILL PROCEED WITH PLANS TO FIGHT GOVERNMENT REGULATIONS ON THE MATTER IN COURT US SUGAR AND FLOSUN EACH OWN ROUGHLY 30 OF THE FARMLAND IN THE EVERGLADES AREA THE INTERIOR DEPARTMENT LAST JULY ANNOUNCED THAT IT REACHED AN OUTLINE AGREEMENT WITH BOTH US SUGAR AND FLOSUN THAT INTERIOR SECRETARY BRUCE BABBITT SAID WOULD RESULT IN THE LARGEST MOST AMBITIOUS ECOSYSTEMRESTORATION PROJECT EVER UNDERTAKEN IN THIS COUNTRY BUT TALKS WITH US SUGAR BROKE DOWN IN DECEMBER OVER AN EVERGLADES LANDUSE STUDY PREPARED FOR THE ARMY CORPS OF ENGINEERS BY AN INTERIOR DEPARTMENT SCIENCE PANEL AT THE TIME US SUGAR SAID THE STUDY PREPARED INDEPENDENTLY OF THE TALKS PROPOSED SWEEPING ADDITIONAL LIMITS ON FARMLAND IN THE EVERGLADES AREA THE COMPANY SAID NEGOTIATIONS COULDN'T CONTINUE UNLESS THE INTERIOR DEPARTMENT PLEDGED NOT TO IMPLEMENT THEM FOR 20 YEARS THE INTERIOR DEPARTMENT REFUSED BUT FLOSUN WHICH IS PRIVATELY HELD BY MEMBERS OF THE FANJUL FAMILY QUIETLY KEPT NEGOTIATING WITH THE DEPARTMENT AN EFFORT THAT CULMINATED IN YESTERDAY'S AGREEMENT GEORGE FRAMPTON ASSISTANT SECRETARY FOR FISH WILDLIFE AND PARKS SAID IT WAS ACTUALLY QUITE A BIT BETTER DEAL FOR THE GOVERNMENT THAN WHAT WE'VE BEEN NEGOTIATING FOR THE LAST SIX MONTHS HE ADDED THAT NOW THAT FLOSUN HAS DROPPED OUT OF THE LAWSUIT US SUGAR'S LITIGATION EXPENSES HAVE JUST DOUBLED WE'RE GOING TO INCREASE THE PRESSURE ON ANYBODY WHO DOESN'T SIGN ROBERT BUKER SENIOR VICE PRESIDENT FOR US SUGAR SAID THE COMPANY DIDN'T SIGN ON TO THE AGREEMENT BECAUSE THERE WAS NO GUARANTEE THAT THE SCIENCE PANEL'S PLAN WOULDN'T BE IMPLEMENTED AND BECAUSE THE STATE OF FLORIDA HASN'T YET SIGNED ON WE'RE AN EMPLOYEEOWNED COMPANY HE SAID WE DON'T HAVE THE LUXURY OF PICKING UP OUR CAPITAL AND MOVING IT OVERSEAS BUT DONALD CARSON EXECUTIVE VICE PRESIDENT OF FLOSUN SAID WE ARE CONVINCED WE'RE DOING THE RIGHT THING AND WE HOPE THE OTHER FARMERS WILL JOIN US IN ADDITION TO US SUGAR SEVERAL SMALLER FARMERS ARE PRESSING THE LAWSUIT IT IS DUE TO COME TO TRIAL APRIL 25 IN FEDERAL DISTRICT COURT IN TALLAHASSEE FLA 9401140075 940114 RAILROADS' PROFIT EXPECTED TO RISE AVERAGE OF 10 FREIGHT SHIPMENT PICKUP TIGHTER COST CONTROLS AIDED EARNINGS BOOST BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR RAILROADS BOOSTED FOURTHQUARTER EARNINGS AN AVERAGE OF MORE THAN 10 HELPED BY TIGHT COST CONTROLS AND A PICKUP IN SOME FREIGHT SHIPMENTS ANALYSTS SAID THE IMPROVED EARNINGS WERE ACHIEVED DESPITE DISAPPOINTING SHIPMENTS OF TWO IMPORTANT RAILHAULED COMMODITIES COAL TRAFFIC WAS HAMPERED BY A MINERS STRIKE IN THE EAST AND WEAK EXPORT DEMAND WHILE GRAIN SHIPMENTS WERE STYMIED BY WEAK EXPORTS AND SEVERE MIDWEST FLOODING LAST SUMMER HOWEVER THE WEAKNESS IN COAL AND GRAIN TRAFFIC WAS MORE THAN OFFSET BY BIG TRAFFIC GAINS IN METALS FINISHED AUTOMOBILES AND INTERMODAL TRAFFIC FREIGHT MOVED BY A COMBINATION OF ROAD AND RAIL ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS INTERMODAL SHIPMENTS CLIMBED 10 IN THE FOURTH QUARTER REFLECTING THE IMPROVING ECONOMY AND INCREASED USE OF THE RAILS BY MOTOR CARRIERS TRYING TO CUT COSTS AND EASE A SHORTAGE OF LONGHAUL TRUCK DRIVERS ALTHOUGH COAL TRAFFIC DECLINED 27 AND GRAIN TRAFFIC WAS OFF 10 INDUSTRIAL SHIPMENTS IMPROVED WITH METALS INCREASING 176 MOTOR VEHICLES 143 CHEMICALS 65 AND LUMBER 63 IF YOU EXCLUDE COAL AND GRAIN RAIL TRAFFIC WOULD HAVE BEEN UP 6 IN OCTOBER 8 IN NOVEMBER AND 11 IN DECEMBER SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP THE RAIL TRAFFIC NUMBERS TELL US THE ECONOMY WAS SOARING AS THE FOURTH QUARTER ENDED MR LLOYD ESTIMATED THE GROUP BOOSTED FOURTHQUARTER EARNINGS ABOUT 11 THOMAS GALVIN AN ANALYST AT CJ LAWRENCE/DEUTSCHE BANK SECURITIES CORP ESTIMATED RAIL EARNINGS ROSE AS MUCH AS 17 WITH COSTCUTTING DISCIPLINE CONTRIBUTING AS MUCH TO THE GAIN AS THE SURGE IN TRAFFIC RAILROADS REMAIN FOCUSED ALMOST OBSESSED WITH STREAMLINING THEIR COST STRUCTURE AND DRIVING SERVICE STANDARDS AND ASSET UTILIZATION LEVELS HIGHER MR GALVIN SAID ANALYSTS ESTIMATED HIGHER FOURTHQUARTER EARNINGS AT CONRAIL INC NORFOLK SOUTHERN CORP UNION PACIFIC CORP BURLINGTON NORTHERN INC AND SANTA FE PACIFIC CORP BUT THEY FORECAST EARNINGS DECLINED AT CSX CORP WHOSE RAIL UNIT WAS HURT BY THE COAL MINERS STRIKE THAT ENDED LATE IN THE FOURTH QUARTER A CSX SPOKESWOMAN DIDN'T PRECISELY ESTIMATE FOURTHQUARTER EARNINGS FOR THE PARENT COMPANY WHICH HAD NET INCOME OF 152 MILLION OR 147 A SHARE IN THE YEAREARLIER PERIOD BUT SHE SAID FOURTHQUARTER NET INCOME EXCEEDED THE 137 A SHARE MEAN OF ANALYSTS' ESTIMATES AND FELL AT THE TOP END OF ESTIMATES THAT RANGE FROM 125 TO 147 A SHARE THE SPOKESWOMAN SAID COAL TRAFFIC DECLINED CLOSE TO 15 AT THE CSX'S RAIL UNIT BUT THAT TRAFFIC GAINS IN AUTOMOBILES METALS AND CHEMICALS WERE VERY REFLECTIVE OF THE STRENGTH OF THE US DOMESTIC ECONOMY SHE SAID OPERATING PROFIT AT THE COMPANY'S OCEAN SHIPPING UNIT ROSE SUBSTANTIALLY IN THE FOURTH QUARTER WHILE PROFIT OF THE INLAND BARGE UNIT WILL BE RELATIVELY CLOSE TO MEETING A VERY STRONG PERFORMANCE IN FOURTH QUARTER 1992 A BURLINGTON NORTHERN SPOKESMAN SAID THE COMPANY IS GENERALLY COMFORTABLE WITH THE CONSENSUS OF ANALYST ESTIMATES THAT BURLINGTON NORTHERN EARNED 120 A SHARE IN THE FOURTH QUARTER THE COMPANY EARNED 104 A SHARE IN THE YEAREARLIER QUARTER EXCLUDING A FAVORABLE TAX ADJUSTMENT OF 19 CENTS A SHARE THE SPOKESMAN SAID BURLINGTON NORTHERN BENEFITED FROM A REDUCTION IN PERSONAL INJURY COSTS AND AN AGREEMENT TO EXTEND SMALLER FREIGHT TRAIN CREWS TO THE NORTHERN THIRD OF ITS RAIL SYSTEM COAL TRAFFIC SOARED 9 IN THE QUARTER HE SAID REFLECTING THE COMPANY'S EFFORT TO HELP UTILITIES REBUILD STOCKPILES THAT WERE DEPLETED WHEN THE MIDWEST FLOODS DISRUPTED RAIL SERVICE HOWEVER THE MOVE DIVERTED RAIL CAPACITY WE DIDN'T HAVE AS MANY LOCOMOTIVES AND CREWS TO HAUL OTHER FREIGHT THE BURLINGTON NORTHERN SPOKESMAN SAID ROBERT KREBS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SANTA FE PACIFIC SAID WE WILL CERTAINLY MEET ANALYSTS' EXPECTATIONS FOR FOURTHQUARTER PROFIT OF ABOUT 29 CENTS OR 30 CENTS A SHARE THE COMPANY EARNED 439 MILLION OR 24 CENTS A SHARE IN THE YEAREARLIER QUARTER EXCLUDING GAINS FROM TRANSIT LINE SALES THAT BOOSTED NET INCOME TO 1689 MILLION OR 91 CENTS A SHARE MR KREBS SAID SANTA FE HAS CUT COSTS BY CENTRALIZING SOME RAIL OPERATIONS AND FOURTHQUARTER RAIL TRAFFIC INCREASED SHARPLY WITH THE STRONGEST GAINS IN INTERMODAL UP 12 AND AUTOMOBILES AND AUTO PARTS UP 35 ANDRAS PETERY AN ANALYST AT MORGAN STANLEY & CO ESTIMATED UNION PACIFIC EARNED 120 A SHARE IN THE LATEST QUARTER COMPARED WITH 94 CENTS IN THE YEAREARLIER PERIOD MR PETERY SAID THE COMPANY'S RAIL AND TRUCKING UNITS PERFORMED WELL BUT THAT UNION PACIFIC'S RESOURCES UNIT WAS HURT BY LOWER OIL PRICES UNION PACIFIC DECLINED TO COMMENT AMONG EASTERN RAILROADS CONRAIL BENEFITED FROM PRODUCTIVITY AND TRAFFIC GAINS WE HAVE GOTTEN OUR COSTS DOWN AND CAN PRICE TO ATTRACT SHORTERHAUL FREIGHT AND STILL MAKE SOME MONEY SAID A CONRAIL SPOKESMAN BUT THE SPOKESMAN DECLINED TO COMMENT ON ANALYST ESTIMATES THAT THE COMPANY HAD EARNINGS OF ABOUT 111 A FULLY DILUTED SHARE COMPARED WITH 99 CENTS A SHARE A YEAR AGO BURTON STRAUSS JR AN ANALYST AT LEHMAN BROTHERS INC ESTIMATED NORFOLK SOUTHERN'S FOURTHQUARTER EARNINGS AT 113 A SHARE SCOTT FLOWER AN ANALYST AT KIDDER PEABODY & CO WAS SLIGHTLY HIGHER AT 116 A SHARE NORFOLK SOUTHERN REPORTED NET INCOME OF 128 MILLION OR 91 CENTS A SHARE FOR THE 1992 FOURTH QUARTER NORFOLK SOUTHERN DECLINED TO COMMENT ON THE ESTIMATES OTHER THAN TO SAY THAT STRONG INDUSTRIAL FREIGHT AND INTERMODAL TRAFFIC OFFSET A WEAKNESS IN COAL WE HAVE MORE DEMAND THAN WE CAN HANDLE SAID TOM FINKBINER NORFOLK SOUTHERN'S VICE PRESIDENT INTERMODAL TO HANDLE THE INCREASING DEMAND FOR INTERMODAL FREIGHT NORFOLK SOUTHERN IS EXPANDING SOME TERMINALS AND RECENTLY ANNOUNCED PLANS TO BUILD AN INTERMODAL TERMINAL ON 800 ACRES OUTSIDE ATLANTA 9401140074 940114 LEISURE & ARTS ON SPORTS CRITIC'S CHOICE RACQUETBALL BY FREDERICK C KLEIN EVANSTON ILL RACQUETBALL IS A WONDERFUL GAME AND I PRIDE MYSELF ON BEING ONE OF ITS EARLIEST PARTICIPANTS I'VE BEEN PLAYING FOR 23 OR 24 YEARS LONG ENOUGH TO HAVE BEEN ASKED BY HANDBALL PLAYERS WHEN HEADED COURTWARD WHY I WAS CARRYING THAT RACQUET I RECALL THE MID1970S WHEN THE SPORT WAS THE RAGE AND LARGE SPIFFY CLUBS WERE SPRINGING UP EVERYWHERE YOU SAY YOU'D LIKE TO JOIN THE YOUNG MAN IN SWEAT CLOTHES BEHIND THE COUNTER WOULD SAY WELL I THINK WE MAY HAVE AN OPENING WHAT DO YOU CHARGE FOR COURT TIME I WOULD ASK YOU MEAN BY THE SEASON OF COURSE THE GUY WOULD ANSWER BUT AFTER A FEW YEARS YOU DIDN'T HAVE TO RESERVE COURT TIME BY THE SEASON A PHONE CALL A WEEK IN ADVANCE WOULD DO AFTER A COUPLE YEARS MORE YOU COULD CALL THE DAY BEFORE AND ARRANGE TO PLAY THEN ALL YOU HAD TO DO WAS SHOW UP ONE DAY AROUND 1985 I SHOWED UP AND THE PLACE WAS CLOSED IT'S A WAREHOUSE NOW I THINK ALONG WITH RACQUETBALLERS DISPLACED BY THAT AND OTHER CLUB CLOSINGS THERE USED TO BE SEVERAL IN MY VICINITY I JOINED THE LOCAL YMCA IT HAD A FAIR AMOUNT OF TRAFFIC ON ITS FOUR COURTS FOR A WHILE BUT THAT HAS PETERED OUT TOO JON LAING WHO WRITES FOR BARRON'S AND I PLAY A COUPLE WEEKDAY MORNINGS STARTING AT 745 AND I CAN THINK OF ONLY ONE DAY THIS WINTER IN WHICH ANOTHER COURT WAS OCCUPIED WHILE WE WERE THERE THIS WEEK OUT OF CURIOSITY I ASKED THE Y DESKMAN WHAT THE WEEKEND SITUATION WAS LIKE HE SHOWED ME THE ADVANCE SIGNUP SHEETS FOR TOMORROW AND SUNDAY THEY WERE BLANK WE GET SOME EARLY EVENING PLAY ON WEEKDAYS BUT NOT MUCH AT OTHER TIMES SAID HE I'D LONG SUSPECTED THAT RACQUETBALL WOULDN'T HOLD ITS EARLY POPULARITY THE FIRST TIPOFF WAS THE FACT THAT PROFESSIONAL ATHLETES WERE AMONG THE MOST VISIBLE COURTCLUB INVESTORS BUT ITS RECENT DECLINE HAS SEEMED PRECIPITOUS FOR DOCUMENTATION I PHONED THE AMERICAN AMATEUR RACQUETBALL ASSOCIATION THE SPORT'S US GOVERNING BODY I WAS TOLD THAT WHILE IT HAD NO CURRENT FIGURES ITS LATEST ESTIMATE WAS THAT US PARTICIPATION WAS HOLDING STEADY AT ABOUT 95 MILLION PLAYERS GIVEN THE INGRAINED BOOSTERISM OF SUCH ORGANIZATIONS I EXPECTED ABOUT AS MUCH THE NATIONAL SPORTING GOODS ASSOCIATION WHICH ANNUALLY SURVEYS SPORTS PARTICIPATION SAYS THERE WERE ABOUT 66 MILLION AMERICAN RACQUETBALLERS AT ITS LAST PUBLISHED CHECK IN 1992 DOWN FROM 99 MILLION IN 1984 IN A LAND OF 250 MILLION THERE PROBABLY ARE 66 MILLION PEOPLE WITH LOWERLIP COLD SORES AT ANY GIVEN TIME BUT EVEN THAT NUMBER SEEMS HIGH RACQUETBALL'S PROFESSIONAL SIDE REFLECTS THE HARSHER REALITIES A PRO TOUR FLOURISHED IN THE EARLY '80S AND HAD A STAR IN YOUNG MARTY HOGAN BUT BY THE LATE '80S IT DWINDLED TO ONLY FOUR STOPS BEFORE IT DIED THERE'S A NEW ONE NOW CALLED THE TRANSCOASTAL INTERNATIONAL TOUR IT ALSO VISITS CANADA AND MEXICO BUT IT'S SANS HOGAN HE'S RETIRED AND THE TOTAL PRIZE MONEY AVAILABLE AT EACH OF ITS 20 STOPS IS IN THE 15000TO20000 RANGE AGAINST AS MUCH AS 50000 IN THE GOOD OLD DAYS OUR VENUES NEVER HAD THE SEATING CAPACITY TO PRODUCE MUCH OF A LIVE GATE AND THE BALL MOVES TOO FAST FOR TELEVISION SAYS HANK MARCUS THE 32YEAROLD FORMER PLAYING PRO WHO'S COMMISSIONER OF THE TRANSCOASTAL TOUR WE'VE HAD TO SCALE DOWN OUR EXPECTATIONS THE PROS HAVE REDUCED THEIR GAME'S NUMBER OF SERVES TO ONE FROM TWO TO PROMOTE RALLIES AND HAVE CHANGED THE COLOR OF THEIR BALL TO GREEN FROM BLUE IN THE NAME OF GREATER VISIBILITY THE SERVICE CHANGE CAME BECAUSE OF ALL THE ACES PRODUCED BY THE 170MPH DELIVERIES OF THE TOP PLAYERS BUT MARCUS THINKS THE RECREATIONAL GAME ALSO WOULD BENEFIT FROM SUCH A SWITCH ANOTHER FELLOW WHO BELIEVES A ONESERVE RULE MIGHT HELP BRING PLAYERS BACK TO RACQUETBALL IS JOE SOBEK HE'S WORTH LISTENING TO BECAUSE HE INVENTED THE GAME IN 1949 HE WAS A TENNIS PRO IN GREENWICH CONN WHO WANTED A WINTER OUTLET FOR HIS ENERGIES REJECTING HANDBALL BECAUSE IT REQUIRES AMBIDEXTERITY AND SQUASH BECAUSE COURTS WERE TOO FEW HE DEVELOPED A SHORTHANDLED RACQUET WITH STRINGS AND FOUND A LIGHT SEAMLESS DIMESTORE BALL TO WHACK AROUND WITH IT INSIDE A HANDBALL COURT THE GAME TOOK NO TIME TO LEARN AND SOON HE AND HIS FRIENDS WERE HOT AT IT THE RUB WAS IN FINDING A MASSPRODUCED RUBBER BALL THAT WAS BOTH RELIABLE AND PLAYABLE THE ONES THAT WERE LIVELY ENOUGH BROKE AND THE ONES THAT WERE STURDY DIDN'T PLAY WELL SOBEK SAYS THE QUEST TOOK NEARLY 20 YEARS BUT ONCE IT WAS SUCCESSFUL THE GAME SOARED SOBEK NOW 75 YEARS OLD SAYS HE'S DISAPPOINTED BUT NOT TERRIBLY SURPRISED THAT RACQUETBALL HAS FALLEN INTO ECLIPSE HE AGREES WITH THE PROPOSITION THAT EASYTODO EXERCISE PUSHES OUT ACTIVITIES THAT REQUIRE SOME TALENT AND APPLICATION AND NOTES THAT AS SIMPLE AS RACQUETBALL IS TO LEARN IT STILL FALLS SHORT OF THE INSTANT MASTERY OFFERED BY SUCH CURRENTLY INVOGUE WORKOUT GADGETS AS THE TREADMILL LIFECYCLE OR STAIRMASTER I OFFERED HIM MY THEORY THAT RACQUETBALL HAS FALTERED IN PART BECAUSE UNLIKE SOME OTHER SPORTS VERY SMALL DIFFERENCES IN SKILL BETWEEN PLAYERS TRANSLATE INTO VERY LARGE DIFFERENCES IN GAME SCORES THIS MEANS THAT TO KEEP INTERESTED PLAYERS MUST FIND OPPONENTS WHO PERFORM AT ALMOST EXACTLY THEIR LEVEL NO SMALL FEAT I ATTRIBUTE MY CONTINUED ALLEGIANCE TO THE GAME TO THE AVAILABILITY OF THE ABOVEMENTIONED LAING HE AND I SHARE A B LEVEL OF EXPERTISE AND PRETTY MUCH TAKE TURNS WINNING ALTHOUGH I MUST ADMIT THAT HIS WIMPY KILL SHOTS ARE BECOMING MORE EFFECTIVE AS MY LEGS AGE SOBEK SAID HE THOUGHT I HAD A POINT BUT HE HAD A FURTHER ONE RACQUETBALL'S DECLINE WAS PROBABLY INEVITABLE BECAUSE THE SPORT GREW SO FAST HE OPINES IT CAUGHT RIGHT ON THE COURT CLUBS MUSHROOMED AND ALL THE OPERATORS HAD TO DO TO GET BUSINESS WAS OPEN THEIR DOORS BUT MOST OF THEM DIDN'T DO MUCH PROMOTION OR OFFER INSTRUCTION AND WHEN PEOPLE REACHED THEIR LIMITS THEY GOT BORED AND QUIT IT'S BEEN A CASE OF EASY COME EASY GO AND I'M AFRAID THAT COMING BACK WON'T BE EASY 9401140073 940114 MARKETING & MEDIA ADVERTISING PUBLIC RADIO'S NEW ADS ENGAGE THEIR TARGET WITH ECCENTRICITY BY KEVIN GOLDMAN A READER PERUSING A RECENT ISSUE OF THE NEW YORKER COULD HAVE EASILY MISTAKEN A FULLPAGE COLOR ADVERTISEMENT FOR ONE OF THE MAGAZINE'S MANY QUIRKY CARTOONS A RUNDOWN CADILLAC LIES ON A COUNTRY ROAD THE HANDWRITTEN TEXT DATED 8 JULY BORDERS ON GIBBERISH THE JUNE BUG JACKSON POLLOCKED MY WINDSHIELD AND AS I LOOKED AT ITS INNARDS I SAW SUBSTANCE WHICH MADE ME THINK IS THERE STILL SOME ROOM IN A SOCIETY OF DISPOSABLE RAZORS DISPOSABLE CARS AND DISPOSABLE MARRIAGES FOR SOMETHING WITH SUBSTANCE WHAT COULD POSSIBLY BE ON SALE NOTHING ZANY IT TURNS OUT INSTEAD MORNING EDITION AND ALL THINGS CONSIDERED HIGHLY RESPECTED DAILY OFFERINGS FROM NATIONAL PUBLIC RADIO IN WASHINGTON THE ADS ARE A DEPARTURE FROM PREVIOUS CAMPAIGNS FOR THE NETWORK WHICH RELIED ON SLOGANS THAT TRIED TO BE CUTE TO ELEVEN MILLION COMMUTERS THIS IS A THINK TANK SAID ONE AD WITH A PHOTOGRAPH OF A DRIVER IN A CAR TWICE A DAY WE EXPLAIN THE FACTS OF LIFE SAID ANOTHER THE NEW ADS ARE TRYING TO BREAK THROUGH THE CLUTTER OF OTHER HIGHERPROFILE RADIO STATIONS FOR EXAMPLE WABC IN NEW YORK THE TOPRATED AM STATION WITH A FORMAT OF CONFRONTATIONAL TALK PROMOTES ITSELF VIA POSTERS PLASTERED ALL OVER THE CITY OF A MUSIC NOTE WITH A RED SLASH THROUGH IT BY CONTRAST NATIONAL PUBLIC RADIO'S APPROACH IS QUIET AND PERCEIVED AS DISTINGUISHED WE WANT TO ENGAGE THE READER SAYS TIM WILLIAMS PRESIDENT OF WILLIAMS & ROCKWOOD THE SALT LAKE CITY AGENCY THAT HAS BEEN PRODUCING NPR'S ADS FOR FOUR YEARS THE NEED FOR A NEW CAMPAIGN AROSE BECAUSE AS GOVERNMENT FUNDS AND OTHER RESOURCES DRY UP NPR HAS HAD TO GET MORE AGGRESSIVE IN TERMS OF PROMOTING ITSELF ANOTHER AD FOR TALK OF THE NATION AN NPR CALLIN PROGRAM SHOWS A THICK SLICE OF PIE AND A PIPINGHOT MUG OF COFFEE THE TEXT DATED 12 AUGUST BEGINS HEROIC NUDES WATCHED WITH ENVY FROM THE WALL AND AS THE SMELL OF RICH COFFEE FILLED THE AIR IT HAPPENED CONCEPTUAL IMPROV EVERYONE EXCHANGING IDEAS IN ADDITION TO THE NEW YORKER THE NEW CAMPAIGN WILL BE SEEN IN OMNI FORBES UTNE READER HEALTH AND ARCHAEOLOGY MAGAZINES THEY DON'T CHARGE NPR A CENT NOR DOES ITS AD AGENCY IN EXCHANGE FOR THE ADS THE MAGAZINES ARE MENTIONED AT THE CONCLUSION OF NPR BROADCASTS NOT A BAD DEAL FOR NPR WHICH RELIES LARGELY ON FEDERAL FUNDING AND CONTRIBUTIONS FROM LISTENERS FOR EXAMPLE NPR SAYS THE NEW YORKER IS GIVING IT 208000 WORTH OF ADS FOUR COLOR ADS AND SIX BLACK AND WHITE FULLPAGE EXPOSURES IN EXCHANGE THE WEEKLY MAGAZINE RECEIVES MORE THAN 200 ONAIR MENTIONS THAT IS FAR FROM A COMMERCIAL FOR THE NEW YORKER INSTEAD IT IS LUMPED WITH THREE OTHER MAJOR CONTRIBUTORS IN A HOHUM ANNOUNCEMENT SUPPORT FOR THIS PROGRAM IS PROVIDED BY THIS AND OTHER NPR RADIO MEMBER STATIONS CONTRIBUTORS INCLUDE AND THEN A TINY PLUG FOR THE MAGAZINE OMNI'S FOR INSTANCE IS A TOOL FOR THE 21ST CENTURY THE NEW YORKER IS WAITING TO SELECT A NEW AD AGENCY BEFORE GOING ON THE AIR WITH A SLOGAN INTERESTINGLY AN NPR SPOKESWOMAN SAYS IT IS THE MAGAZINES THAT APPROACH NPR WITH THE IDEA OF TRADING AD SPACE FOR A 10WORD MENTION ON THE AIR NPR'S AUDIENCE AND OUR READERSHIP HAVE SIMILAR QUALITIES SAYS A SPOKESWOMAN FOR THE NEW YORKER IT IS A WAY FOR US TO GAIN AWARENESS AMONG THEIR AUDIENCE THE ADS FROM NEW YORK ARTIST BOB CONGE ARE REMINISCENT OF THE ZANY ILLUSTRATIONS OF RALPH STEADMAN WHO PROVIDED THE ART WORK FOR BOOKS BY GONZO JOURNALIST HUNTER S THOMPSON INCLUDING FEAR AND LOATHING IN LAS VEGAS THE NEW YORKER ORIGINALLY OBJECTED TO THE TWO ADS FROM MR CONGE BECAUSE THEY LOOKED TOO MUCH LIKE ACTUAL NEW YORKER CARTOONS MR WILLIAMS SAYS SUBSEQUENT ADS WILL PROBABLY BE LABELED AS ADVERTISEMENTS AT THE TOP OF EACH PAGE ALTHOUGH DETAILS HAVE YET TO BE WORKED OUT MR WILLIAMS SAYS THE AGENCY CREATES THE CAMPAIGNS ON A PRO BONO BASIS WE LIKE WORKING ON CAUSES WE BELIEVE IN HE SAYS ADDING THAT THE AGENCY ALSO CREATES PRO BONO ADS FOR THE UTAH SYMPHONY I SENT A LETTER TO NPR FOUR YEARS AGO HE SAYS WE GET SOMETHING OUT OF THIS WE GET EXPOSURE AND AN EXCEPTIONAL DEGREE OF CREATIVE LATITUDE IT HELPS ADDS MR WILLIAMS THAT THE AGENCY'S THREE PARTNERS ARE ALL FANS OF NPR THE ILLUSTRATED ADS MAY SEEM PUZZLING AT FIRST IN FACT ONE HAS TO READ UNTIL THE END OF THE JACKSON POLLOCKED AD TO SEE HOW AND IF IT ALL MAKES SENSE THAT AD CONCLUDES WITH AND AS ANOTHER JUNE BUG ADDS TO THE PAINTING ON THE WINDSHIELD I GLANCE AT THE RADIO DIAL AND THINK YES THERE ARE A FEW PLACES WHERE SUBSTANCE STILL MATTERS THE ADS' EFFECTIVENESS HASN'T BEEN TESTED YET BECAUSE THEY'RE SO NEW ALREADY HOWEVER THE AGENCY IS AT WORK TO CREATE MORE PUZZLING ADS FOR NPR TWIN PEAKS ANYONE TBWA OMNICOM GROUP'S TBWA INTERNATIONAL OPENED AN OFFICE IN ATHENS GREECE PRODUCTATBWA SA WAS FORMED BY TWO TINY AGENCIES TBWA ACQUIRED AND MERGED PRODUCTA SA AND OXYGEN SA THE AGENCY'S BILLINGS ARE ESTIMATED AT 15 MILLION CLIENTS INCLUDE BAYER ASPIRIN AND LONGINES WATCHES WHO'S NEWS LES MOUSER 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MINNEAPOLIS OFFICE OF CME KHBB A UNIT OF SAATCHI & SAATCHI CO HE SUCCEEDS HOWARD LISZT WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE SAATCHI'S CME NETWORK EARLIER THIS MONTH PETER BACH 39 WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE CME NETWORK BOZELL A UNIT OF BOZELL JACOBS KENYON & ECKHARDT NAMED ANDREW P TUCK 41 TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND DIRECTOR OF STRATEGIC PLANNING DR TUCK WAS EXECUTIVE VICE PRESIDENT AT BOZELL'S KRC RESEARCH & CONSULTING 9401140072 940114 LEISURE & ARTS BOOKSHELF OSTPOLITIK AND GERMAN UNIFICATION BY DAVID GRESS THE UNIFICATION OF GERMANY IN 19891990 WAS THE CRUCIAL POLITICAL EVENT OF THE LATE 20TH CENTURY IN CENTRAL EUROPE IT WAS ALSO A DEEPLY IRONIC MOMENT IT WAS IRONIC FIRST BECAUSE FEW WEST GERMANS HAD EXPECTED IT YET WHEN IT BEGAN TO HAPPEN EVERY POLITICAL PARTY CLAIMED THAT ITS POLICIES HAD PREPARED THE WAY AND THAT IT ALONE HAD THE RIGHT STRATEGY FOR MAKING IT WORK GERMAN UNIFICATION WAS IRONIC SECONDLY IN THE MORE PROFOUND SENSE THAT WHILE UNEXPECTED IT DID HAPPEN EXACTLY AS WEST GERMAN LEADERS SINCE THE MID1950S HAD PREDICTED IT WOULD BY THE GRACE OF MOSCOW YET THOSE SAME LEADERS ALSO BELIEVED THAT MOSCOW WOULD NEVER GRANT THIS GRACE WHO OPENED THE BERLIN WALL THE COMMUNIST AUTHORITIES OF EAST BERLIN WHY BECAUSE THE COMMUNIST AUTHORITIES OF MOSCOW THAT IS MIKHAIL GORBACHEV HAD DECIDED THAT CONTROL OF EAST GERMANY WAS NO LONGER IN THE INTERESTS OF THE SOVIET UNION THAT IN FACT THE USSR STOOD TO GAIN FAR MORE IN AID GOODWILL AND PRESTIGE BY GIVING IT UP WHY DID MR GORBACHEV THINK THIS IN PART BECAUSE COMMUNISM AS AN ECONOMIC SYSTEM WAS FAILING AND HE NEEDED TO RETRENCH BUT ALSO BECAUSE HE FACED THE CONSEQUENCES OF WHAT SOVIET LEADERS HAD LONG KNOWN ABOUT THE WEST THAT IT WAS NO THREAT TO THE SOVIET UNION THE THIRD IRONY IS THAT ALL THE GOODWILL AND AID IN THE WORLD DID NOT SAVE MR GORBACHEV AND HIS BELOVED SOVIET UNION FROM COLLAPSE YET THIS COLLAPSE WAS NEITHER HIS INTENTION NOR THAT OF THE WEST GERMAN LEADERS WHO NEGOTIATED WITH HIM TO SECURE UNIFICATION THEY CAME TO HIM AS SUITORS NOT AS COLD WAR VICTORS THE STORY OF HOW DEMOCRATIC WEST GERMANY FOUNDED IN 1949 BY THE WESTERN DEMOCRACIES AND THEIR GERMAN FRIENDS EVOLVED A SET OF POLICIES FOR DEALING WITH THE DIVISION OF GERMANY IS A VITAL PART OF THE HISTORICAL RECORD THE KEY TO THIS STORYAND WHAT HOLDS PERMANENT LESSONS FOR HOW DEMOCRACIES REACT TO THREATS HOW THEY APPROACH THEIR ENEMIES AND HOW THEY FIND A PATH THAT LEADS NEITHER TO APPEASEMENT NOR TO NEEDLESS PROVOCATION IS THE OSTPOLITIK EASTERN POLICY OF THE 19691982 SOCIAL DEMOCRATIC GOVERNMENT OF WILLY BRANDT AND HELMUT SCHMIDT AN INTELLECTUAL AND POLITICAL HISTORY OF THIS POLICY IS SORELY NEEDED ESPECIALLY IN THIS TIME OF POSTUNIFICATION DEPRESSION IN A GERMANY THAT SEEMS DETERMINED TO BECOME THE SICK MAN OF EUROPE IN THE NEXT CENTURY AS BRITAIN WAS IN THE '60S AND '70S THE BRITISH WRITER TIMOTHY GARTON ASH JUSTLY WELLKNOWN FOR HIS ELEGANT LEARNED AND INFORMATIVE ESSAYS ON THE DEMOCRATIC TRANSFORMATIONS IN EASTERN EUROPE IN THE '80S AND ON THE PEOPLE IDEAS PASSIONS AND ASPIRATIONS THAT LAY BEHIND THOSE TRANSFORMATIONS HAS ATTEMPTED THIS TASK IN IN EUROPE'S NAME RANDOM HOUSE 688 PAGES 2750 THE RESULT IS ABSOLUTELY INDISPENSABLE FOR ANYONE TRYING TO UNDERSTAND OSTPOLITIK AND THE FATE OF GERMANY AND EUROPE AS A WHOLE IN THE TWO DECADES LEADING UP TO UNIFICATION BUT IT IS NOT THE DECISIVE INTERPRETATION THAT WE NEED MR GARTON ASH HAS PUT GREAT CARE AND EFFORT INTO HIS WORK HE HAS INTERVIEWED AT LENGTH ALL THE LEADING ACTORS INCLUDING THE COMMUNIST RULERS OF EAST GERMANY HE HAS REFLECTED ON THE AMBIGUITIES OF WEST GERMAN LEADERS OBLIGED BOTH TO REASSURE THE SOVIETS THAT THEY WERE NO THREAT AND THE AMERICANS THAT THEY WERE NOT SLIPPING INTO NEUTRALITY OR APPEASEMENT HIS CHAPTERS OSTPOLITIK BONNMOSCOWBERLIN AND SECOND OSTPOLITIK CONSTITUTE A REFLECTIVE ACCOUNT OF EVENTS THAT SETS A STANDARD HOWEVER THIS IS NOT ENOUGH THE PROBLEM LIES IN THE AMBIVALENCE OF THE WEST GERMAN LEADERS THEMSELVES SEEING BY THE LATE '60S THAT THE SOVIETS WERE NOT GOING TO PERMIT PEACEFUL UNIFICATION THEY SOUGHT DETENTE WITH THE COMMUNISTS IN THE INTERESTS OF STABILITY IN DOING SO THEY KNOWINGLY REJECTED THE CLAIMS OF THE PEOPLE OF EASTERN EUROPE INCLUDING EAST GERMANY FOR DEMOCRACY AND CIVIL RIGHTS AT WHAT POINT DID THIS GERMAN OBSESSION WITH STABILITY AND THE TENDER FEELINGS OF COMMUNIST RULERS BECOME COLLUSION WITH TYRANTS DID OSTPOLITIK DELAY OR BRING ABOUT DEMOCRACY AND UNIFICATION THE GERMANS THEMSELVES REFUSE TO SAY BUT THE HISTORIAN HAS AN OBLIGATION TO JUDGE MR GARTON ASH SHIRKS THAT OBLIGATION IN HIS PRESENTATION OF ALL VIEWS THE RECORD I BELIEVE WILL SHOW THAT FOR ALL THE GOODWILL EVIDENT IN ITS BEGINNINGS OSTPOLITIK BECAME A STRATEGY FOR BUTTRESSING UNDEMOCRATIC REGIMES AGAINST THEIR OWN PEOPLE IN THE NAME OF THAT GREAT GERMAN IDOL STABILITY THE COMMUNIST RULERS WERE UNDER NO ILLUSION THAT WEST GERMANY WAS A THREAT THEY KNEW WHERE THEY HAD THE GERMANS THE FINAL IRONY OF HISTORY IS THAT THE GERMANS SOUGHT UNIFICATION AS SUPPLICANTS BUT IN VAIN THE SOVIET UNION HAS PERISHED IF NOT ALL ITS WORKS GERMANY REMAINS THE QUESTION FOR ALL OF US IS WHETHER IT WILL FACE THE CHALLENGE OF THE FUTURE TO ANSWER THE QUESTION WE HAVE MUCH INFORMATION IN THIS VALUABLE BOOK BUT PRECIOUS FEW REAL JUDGMENTS MR GRESS IS COAUTHOR WITH DENNIS L BARK OF A HISTORY OF WEST GERMANY BLACKWELL 9401140071 940114 LEISURE & ARTS DANCE TCHAIKOVSKY IN BACK SEAT BY DALE HARRIS COSTA MESA CALIF WITH HIS STAGING OF THE NUTCRACKER FOR AMERICAN BALLET THEATRE KEVIN MCKENZIE JOINS THE RANKS OF THOSE DIRECTORS OF DANCE TROUPES WHO CANNOT CHOREOGRAPH BUT FEEL COMPELLED TO DO SO ANYWAY BETWEEN 1989 AND 1992 WHEN ABT WAS LED BY JANE HERMAN THE COMPANY GOT BY WITHOUT A RESIDENT CHOREOGRAPHER MS HERMAN INVITED GUEST ARTISTS TO CREATE NEW WORKS AND RESTAGE THE CLASSICS WHENEVER THE BOX OFFICE NEEDED STIMULATION TO THIS POLICY OF FREELANCE CHOREOGRAPHY MR MCKENZIE MS HERMAN'S SUCCESSOR HAS LARGELY HEWED FOR ABT'S FORTHCOMING SEASON AT THE METROPOLITAN OPERA HOUSE IN NEW YORK HE HAS COMMISSIONED PIECES FROM LAR LUBOVICH AND JAMES KUDELKA FOR THE NUTCRACKER HOWEVER HE TURNED NOT TO AN OUTSIDER BUT TO HIMSELF A SURPRISING CHOICE GIVEN HIS LACK OF EXPERIENCE AS A CHOREOGRAPHER AND THE NATURE OF THE BALLET IN QUESTION THE NUTCRACKER TCHAIKOVSKY'S FINAL BALLET IS THE ONLY FULLLENGTH 19THCENTURY CLASSIC IN THE INTERNATIONAL REPERTOIRE TO SURVIVE WITHOUT A GENERALLY ACCEPTED CHOREOGRAPHIC TEXT AS A RESULT ANYONE WHO HAS EVER STAGED THE WORK IN THIS COUNTRY WHETHER GEORGE BALANCHINE OR MARK MORRIS HAS NECESSARILY BEEN INVOLVED IN A COMPLEX CREATIVE TASK MR MCKENZIE'S DETERMINATION TO UNDERTAKE THE ASSIGNMENT SUGGESTS EITHER THAT HE HAS A VERY HIGH OPINION OF HIS TALENT OR A VERY LOW OPINION OF THE BALLET A LOW OPINION OF IT THAT IS AS A WORK OF ART NO ONE COULD QUESTION ITS COMMERCIAL IMPORTANCE FOR ABT WHICH IS STILL TRYING TO RECOVER FROM THE FINANCIAL AS WELL AS ARTISTIC DAMAGE IT SUSTAINED UNDER MS HERMAN VIRTUALLY ANY PRODUCTION OF THE BALLET CAN BE GUARANTEED TO ATTRACT LARGE AUDIENCES AND WHEN MR MCKENZIE TOOK CHARGE OF ABT HE HAD NO NUTCRACKER TO PRESENT MIKHAIL BARYSHNIKOV HAD WITHDRAWN HIS VERSION OF THE WORK FROM THE COMPANY'S REPERTOIRE IN 1989 WHEN HE WAS REPLACED AS DIRECTOR BY MS HERMAN THOUGH MR MCKENZIE'S PRODUCTION WAS LAUNCHED AT THE ORANGE COUNTY PERFORMING ARTS CENTER IN DECEMBER AT THE VERY HEIGHT THAT IS OF THE ANNUAL NUTCRACKER MANIA IT WAS EVIDENTLY DESIGNED TO BE PART OF ABT'S YEARROUND OFFERINGS AND WILL FIGURE PROMINENTLY IN THE COMPANY'S LINCOLN CENTER SEASON NO DOUBT IT IS FOR THIS REASON THAT IN ACT TWO WINTER GIVES WAY TO SPRING ALBEIT ARBITRARILY AND IN VIOLATION OF THE BALLET'S OVERALL MOOD THOUGH IT IS HARD TO TALK OF AN OVERALL MOOD IN A PRODUCTION SO MARKED BY DISARRAY CONFUSINGLY NARRATED MUSICALLY BARBAROUS VULGARLY DESIGNED AND SO CHOREOGRAPHICALLY INEPT THAT EVEN FINE DANCERS SUCH AS JULIE KENT AND PALOMA HERRERA LOOKED LOST THIS NUTCRACKER IS AS ARTISTICALLY NULL AS ANYTHING PRESENTED BY ABT DURING ITS ERRATIC 54YEAR HISTORY BASIC TO THIS MISADVENTURE IS MR MCKENZIE'S FAILURE TO UNDERSTAND THAT THE BALLET'S ESSENTIAL SUBJECT IS TCHAIKOVSKY'S MUSIC THE ORIGINAL SCENARIO THOUGH IMPLICITLY A FABLE OF MATURATION IS SLIGHT UNRESONANT SHORTBREATHED BY THE END OF ACT ONE THE STORY SUCH AS IT IS IS OVER ACT TWO SET IN CANDY LAND CONSISTS OF A DIVERTISSEMENT GIVEN TO HONOR CLARA AND THE NUTCRACKER FOR HAVING SURVIVED WITH COURAGE AND GRACE THE ONSLAUGHT OF THE MICE IN ACT ONE BUT THE ENTERTAINMENT PROVIDED FOR THEM IS IRRELEVANT TO THEIR DEEDS INSTEAD OF AMPLIFYING THE DEEDS' SIGNIFICANCE IT REDUCES IT SEATED THROUGHOUT THE ACT AT A TABLE PILED WITH SWEETMEATS THEY ARE NOT SO MUCH GUESTS OF HONOR AS COUCH POTATOES EVEN IN ACT ONE NARRATIVE IS LESS IMPORTANT THAN ATMOSPHERE AND SITUATION WHAT AFFECTS US MOST ARE SUCH THINGS AS THE PARTY GAMES THE CHILDREN'S EXCITEMENT THE MACABRE MOOD INTRODUCED BY CLARA'S GODFATHER DROSSELMEYER THROUGH WHOM WE ENCOUNTER THE TERRORS THAT LURK BEHIND THE SECURITY OF A BOURGEOIS HOUSEHOLD THE SUDDEN ENLARGEMENT OF THE MILIEU OF CHILDHOOD THE MAGICAL JOURNEY OF CLARA AND THE NUTCRACKER PRINCE THROUGH THE LAND OF SNOW ALL THIS TCHAIKOVSKY BODIES FORTH IN MUSIC OF SUCH POETIC VIVIDNESS THAT IT CARRIES THE ENTIRE EVENING THE EPISODE OF THE CHRISTMAS TREE IN PARTICULAR IS ONE OF THE MIRACLES OF LYRIC THEATER IN 48 BARS OF SURGING MELODY THE TREE BECOMES COLOSSAL AND CLARA'S WORLD IS TRANSFORMED FROM THE FAMILIAL TO THE HEROIC THE EPISODE IS SO RICH IN MEANING SO FULL OF PASSIONATE INTENSITY THAT MATCHED WITH APPROPRIATE STAGE ACTION IT REAWAKENS ONE'S LONGLOST SENSE OF CHILDHOOD WONDER BUT APPROPRIATE STAGE ACTION IS PRECISELY WHAT MR MCKENZIE FAILS TO SUPPLY INSTEAD OF ENSURING THAT THE TREE REACHES ITS FULL ASTONISHING HEIGHT AS THE MUSIC RISES TO A CLIMAX THE CHOREOGRAPHER CONCLUDES ITS GROWTH HALFWAY THROUGH THE PASSAGE FOR THE GLORIOUS CRESCENDO WITH WHICH TCHAIKOVSKY BRINGS THIS EXTRAORDINARY SCENE TO A CLOSE MR MCKENZIE HAS DEVISED SOME INCONSEQUENTIAL ACTION INVOLVING THE RATS WHO HAVE CONGREGATED AT THE FOOT OF THE TREE THE PRODUCTION AS A WHOLE IS MARKED BY MUSICAL INSENSITIVITY THE SOLEMN ADAGIO OF THE GRAND PAS DE DEUX FOR THE SUGAR PLUM FAIRY AND HER CAVALIER COMES AFTERAND NOT AS TCHAIKOVSKY INTENDED BEFORE THEIR SOLOS MR MCKENZIE HAS ALSO MADE CUTS THROUGHOUT THE SCORE AS WELL AS TRANSPOSITIONS THE MOST STARTLING OF WHICH IS THE USE OF THE MUSIC FOR MOTHER GINGER AND HER CHILDREN FOR THE FINAL ENSEMBLE OF ACT TWO IT IS THE GENIUS OF TCHAIKOVSKY THAT MITIGATES THE WEAKNESS OF PETIPA'S SCENARIO AND GIVES THIS BALLET THE BLEND OF FEELING AND ENCHANTMENT THAT HAS MADE IT A CLASSIC UNFORTUNATELY MR MCKENZIE HAS USED THE MUSIC NOT AS AN EMOTIONAL RESOURCE OR A GUIDE TO ATMOSPHERE AND MOOD BUT AS A BACKGROUND FOR SITUATIONS THAT MOSTLY HAVE NOTHING TO DO WITH ITS CHARACTER AND STYLE INSTEAD OF LISTENING TO TCHAIKOVSKY MR MCKENZIE HAS LISTENED TO WENDY WASSERSTEIN AUTHOR OF THE SISTERS ROSENSWEIG WHOM HE INVITED TO ENDOW PETIPA'S SIMPLE NARRATIVE WITH GREATER COMPLEXITY OF THEME AND WITH WHAT SEEMS TO HAVE BEEN INTENDED AS PSYCHOLOGICAL PLAUSIBILITY BUT WHICH COMES OVER AS UNNECESSARY COMPLICATION THUS CLARA IS INVOLVED IN NOT ONE BUT TWO BATTLES WITH THE RATS IN THE FIRST SHE SAVES THE NUTCRACKER AND IN THE SECOND SHE ENSURES HIS TRANSFORMATION INTO THE PRINCE BY SHOWING HIM COMPASSION IN THE EPILOGUE HE IS AGAIN TRANSFORMED THIS TIME INTO DROSSELMEYER'S SON WHO HANDS HER A BOUQUET AS THE CURTAIN FALLS LIKE MOST OF WHAT COMES BEFORE THIS IS NOT MERELY CONFUSING IT IS ALSO PEDESTRIAN 9401140070 940114 TAIWAN'S ACER ATTRACTS FOREIGN INVESTORS BUT IT ISN'T CORE PCS THAT ARE GETTING THE ATTENTION BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL THE FOREIGN MONEY FLOODING INTO TAIWAN'S STOCK MARKET HAS HELPED LIFT THE SHARES OF ACER INC THE COUNTRY'S LARGEST COMPUTER MAKER MORE THAN 40 SINCE EARLY DECEMBER BUT IT ISN'T ACER'S CORE PERSONALCOMPUTER BUSINESS THAT IS ATTRACTING FOREIGN AS WELL AS DOMESTIC INVESTORS INSTEAD IT IS THE BIG EARNINGS GAINS FROM ACER'S RECENT LAND SALES AND ITS MAJORITY STAKE IN TI/ACER INC A LUCRATIVE JOINT VENTURE WITH TEXAS INSTRUMENTS INC OF THE US THAT IS TAIWAN'S ONLY MAKER OF DYNAMIC RANDOM ACCESS MEMORY CHIPS OR DRAMS THE MEMORIES OF COMPUTERS AS A RESULT FOREIGN INVESTORS HAVE SNAPPED UP NEARLY ALL OF THE 10 OF ACER SHARES OUTSTANDING THAT THEY ARE ALLOWED TO BUY UNDER TAIWANESE REGULATIONS THE COMPANY'S SHARES CLOSED THURSDAY AT 4830 NEW TAIWAN DOLLARS US184 DOWN FROM NT5150 THE DAY BEFORE INVESTORS VIEW ACER'S CORE PC BUSINESS WITH SKEPTICISM PARTICULARLY AFTER WATCHING THE COMPANY LEAP FROM STRATEGY TO STRATEGY OVER THE PAST FEW YEARS AMID VICIOUS GLOBAL COMPETITION DEFINITELY PCS ARE NOT THE REASON TO BUY ACER SAYS JONATHAN ROSS TAIWAN COUNTRY MANAGER FOR HG ASIA SECURITIES TAIWAN LTD YOU'RE BUYING 58 OF A DRAM MANUFACTURER ESSENTIALLY BEN LEE AN ANALYST WITH WARDLEY JAMES CAPEL TAIWAN LTD ADDS MAYBE IT IS A SHORTTERM SPECULATIVE BUY BASED ON ASSET SALES BUT FROM A LONGTERM PERSPECTIVE I STILL HOLD MANY DOUBTS ABOUT THE COMPANY'S FUTURE ACER CHAIRMAN STAN SHIH DOESN'T SEE IT THAT WAY WHILE ACKNOWLEDGING THAT THE COMPANY HAS RELIED ON LAND SALES AND CHIPS TO BOOST EARNINGS IN THE PAST FEW YEARS HE SAYS ACER'S MAINSTREAM BUSINESS WILL COME BACK STRONG THIS YEAR AS FOR THE VIEW THAT INVESTORS DON'T BUY ACER FOR ITS COMPUTERS HE SAYS I DON'T THINK THIS WILL BE TRUE IN THE FUTURE MAYBE WE STILL HAVE SOME LAND TO SELL BUT THE REAL POTENTIAL IS IN ALL OUR CORE BUSINESSES IN AN INTERVIEW AT ACER'S NEW DOWNTOWN TAIPEI OFFICES OCCUPIED AFTER THE SALE OF THE COMPANY'S SUBURBAN HEADQUARTERS MR SHIH SAYS ACER EXPECTS ITS PRODUCTION OF MOTHERBOARDS THE COMBINATIONS OF INTEGRATED CIRCUITS THAT SERVE AS THE BRAIN OF A PC TO INCREASE 50 THIS YEAR AFTER TRIPLING LAST YEAR OUTPUT OF NOTEBOOK COMPUTERS WITH ACER'S BRAND NAME AND FOR OTHER COMPANIES IS EXPECTED TO DOUBLE AFTER ALSO TRIPLING LAST YEAR HE SAYS THESE MASSPRODUCED GOODS ALONG WITH SUCH SPECIALIZED PRODUCTS AS MULTIMEDIA PCS AND COMPUTERS BASED ON REDUCED INSTRUCTION SET COMPUTING OR RISC CHIPS WILL DRIVE ACER'S EARNINGS TO A RECORD NT15 BILLION THIS YEAR MR SHIH SAYS TUESDAY ACER ANNOUNCED THAT PARENTCOMPANY EARNINGS IN 1993 ROSE 1829 FROM A YEAR EARLIER TO NT108 BILLION ON A 565 GAIN IN SALES TO NT194 BILLION THE COMPANY PROJECTS THAT SALES THIS YEAR WILL RISE ABOUT 25 TO NT20 BILLION THE 49YEAROLD MR SHIH WHO STILL LOOKS LIKE THE YOUNG ELECTRICAL ENGINEER HE WAS WHEN HE STARTED ACER IN A GARAGE IN THE 1970S INSISTS THAT THE COMPANY'S EARNINGS WILL CLIMB NEARLY 40 THIS YEAR SOME OF THE INCREASE HE SAYS WILL COME FROM EVERIMPROVING ECONOMIES OF SCALE AND THE ELIMINATION OF HEAVY LOSSES IN THE COMPANY'S US AND EUROPEAN OPERATIONS LAST YEAR THOSE TWO REGIONS INCURRED LOSSES OF SOME NT800 MILLION LARGELY THE LEGACY OF ACER'S EFFORTS TO BREAK INTO THE US MARKET THROUGH TAKEOVERS AND ILLADVISED EXPANSION MR SHIH SAYS ACER'S OVERALL MANUFACTURING OPERATIONS EXCLUDING PERIPHERALS TURNED A PROFIT OF NT20 MILLION LAST YEAR ANALYSTS TAKE A LESSROSY VIEW OF THE PROSPECTS FOR ACER'S COMPUTER BUSINESS THEY NOTE THAT COMPUTER MAKERS WORLDWIDE HAVE BEEN BUFFETED BY FIERCE COMPETITION FOR THE PAST THREE YEARS AND THAT EVEN WITH A SOLID INCREASE IN COMPUTER AND RELATED SALES LAST YEAR INDUSTRY EARNINGS GROWTH HAS BEEN SLIM BECAUSE OF TIGHT PROFIT MARGINS MANY ANALYSTS WORRY THAT ANOTHER ROUND OF PRICECUTTING COULD BE COMING THIS YEAR WHICH COULD CUT INTO PROFIT EVEN MORE MOST OF MY CLIENTS AREN'T TOO ENTHUSIASTIC ABOUT PC MANUFACTURERS IN GENERAL SAYS MR ROSS OF HG ASIA MR LEE OF WARDLEY JAMES CAPEL SAYS ACER'S PROFIT MARGINS HAVE DECLINED STEADILY IN THE PAST THREE YEARS TO 199 IN THE FIRST NINE MONTHS OF 1993 FROM 47 IN 1991 BUT MR SHIH SAYS THE COMPANY HAS OFFSET THAT TREND BY MASSPRODUCING COMPUTER PRODUCTS MEANWHILE THE FACTORS THAT HAVE LURED INVESTORS TO ACER'S STOCK WILL LOSE SOME OF THEIR APPEAL THIS YEAR IN THE PAST TWO YEARS LAND SALES NETTED THE COMPANY NEARLY NT1 BILLION IN EXTRAORDINARY INCOME BUT ACER PLANS TO HOLD ON TO MOST OF WHAT REMAINS IN ITS LAND BANK AT THE SAME TIME MR SHIH EXPECTS THAT THE RAPID INCREASE IN PROFIT FROM TI/ACER LIKELY WILL LEVEL OFF EARNINGS FROM THAT VENTURE LAST YEAR CONTRIBUTED NEARLY NT800 MILLION TO ACER'S PROFIT THE FIRST TIME THAT TI/ACER HAS TURNED A PROFIT SINCE IT BEGAN OPERATIONS IN 1991 MR SHIH SAYS THE COMPANY IS PROJECTING SIMILAR RETURNS THIS YEAR HE SAYS AN EXPECTED INCREASE IN OUTPUT TO ABOUT THREE MILLION CHIPS A MONTH FROM THE CURRENT LEVEL OF ABOUT TWO MILLION SHOULD BE OFFSET BY A PROJECTED SECONDHALF DECLINE IN DRAM PRICES HE ADDS HOWEVER THAT THE COMPANY'S PROJECTION MAY BE TOO CONSERVATIVE MR LEE OF WARDLEY JAMES CAPEL SAYS INVESTORS SEE ANOTHER BENEFIT TO HOLDING ACER SHARES IN COMING YEARS THE PROSPECT OF THE COMPANY LISTING SUBSIDIARIES ON THE TAIWAN STOCK EXCHANGE MR SHIH CONFIRMS THAT THE COMPANY PLANS TO SUBMIT APPLICATIONS TO TAIWAN'S SECURITIES AND EXCHANGE COMMISSION DURING THE SECOND QUARTER OF THE YEAR TO LIST TWO UNITS ONE IS ACER PERIPHERALS INC A 49OWNED SUBSIDIARY THAT MAKES MONITORS KEYBOARDS FAX MACHINES AND OTHER PRODUCTS SOME 20 OF ACER PERIPHERAL'S SHARES WOULD BE SOLD TO THE PUBLIC THE UNIT LAST YEAR EARNED NT470 MILLION AND MR SHIH SAYS ITS PROFIT THIS YEAR IS PROJECTED AT NT540 MILLION THE SECOND SUBSIDIARY THAT ACER WOULD LIKE TO SEE LISTED IS ACER SERTEK INC A 49OWNED TRADING COMPANY THAT MARKETS ACER PRODUCTS AND MANY IMPORTED HIGHTECHNOLOGY PRODUCTS IN TAIWAN BOTH SPINOFFS WOULD ADD BIG ONETIME GAINS TO ACER'S 1994 EARNINGS AND THE COMPANIES WOULD CONTINUE TO CONTRIBUTE OPERATING EARNINGS ONE REASON ACER PROJECTS THAT ITS SALES WILL INCREASE ONLY 25 THIS YEAR IS THAT IF THE TWO SUBSIDIARIES ARE LISTED THEIR REVENUE WOULD NO LONGER BE REFLECTED IN THE PARENT COMPANY'S SALES TOTALS SUCH REVENUE WOULD HOWEVER FALL UNDER TOTAL ACER GROUP SALES WHICH ARE PROJECTED TO RISE 25 THIS YEAR TO NT625 BILLION FROM NT50 BILLION IN 1993 MANY ANALYSTS SAY THEY LOOK FORWARD TO THE DAY THAT TI/ACER IS LISTED BUT MR SHIH SAYS THAT THAT STEP PROBABLY WON'T COME UNTIL AFTER 1997 9401140069 940114 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF STEPUP NOTES DUE JAN 27 1997 PRICED AT PAR TO YIELD 415 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS THE COUPON WILL RISE AFTER ONE YEAR TO 482 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF NOTES DUE JAN 24 1997 PRICED AT PAR TO YIELD 453 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE JAN 21 2004 PRICED AT PAR TO YIELD 619 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HEILEMAN ACQUISITION CO 160 MILLION OF SENIOR SUBORDINATED NOTES DUE JAN 31 2004 PRICED AT PAR TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS WERE PRICED AT A SPREAD OF 400 BASIS POINTS ABOVE TREASURYS THE NOTES HAVE A THREEYEAR INITIALPUBLICOFFERING CALL OPTION FOR UP TO 35 OF THE ISSUE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP HEILEMAN ACQUISITION CO IS AN AFFILIATE OF HICKS MUSE & CO JP MORGAN & CO 300 MILLION OF NOTES DUE JAN 15 2009 PRICED AT 99888 TO YIELD 6262 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 59 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN & CO MERRILL LYNCH & CO 200 MILLION OF NOTES DUE JAN 15 2006 PRICED AS 625S AT 9934 TO YIELD 633 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWS AMERICA HOLDINGS INC 200 MILLION OF DEBENTURES DUE JAN 20 2024 PRICED AT PAR TO YIELD 775 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 147 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP PROVIDENT BANK 100 MILLION OF SUBORDINATED BANK NOTES DUE JAN 15 2004 PRICED AS 6375S AT 9935 TO YIELD 6464 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PROVIDENT BANK IS A UNIT OF PROVIDENT BANCORP STUDENT LOAN MARKETING CORP 100 MILLION OF FLOATINGRATE NOTES PRICED WITH A COUPON 75 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE OR 4 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FEDERAL HOME LOAN MORTGAGE CORP 510 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1679 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1675 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1676 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS GENERAL MOTORS ACCEPTANCE CORP 138 BILLION TWOPART OFFERING BACKED BY WHOLESALE AUTO RECEIVABLES CORP DEALER FLOORPLAN RECEIVABLES PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INC THE SECURITIES ACCORDING TO MCM CORPORATEWATCH ARE BEING OFFERED THROUGH A SPECIALPURPOSE TRUST SUPERIOR WHOLESALE INVENTORY FINANCING TRUST I THERE ARE 125 BILLION 1994A OF TERM NOTES RATED TRIPLEA1 BY MOODY'S AND S&P PRICED AT 100 TO FLOAT 15 BASIS POINTS ABOVE THE ONEMONTH LIBOR INITIAL COUPON IS 3275 THE NOTES HAVE A 307YEAR AVERAGE LIFE AN EXPECTED FINAL MATURITY OF MARCH 15 1997 AND LEGAL FINAL MATURITY OF JAN 15 1999 ADDED CREDIT ENHANCEMENT INCLUDES A 132 MILLION SUBCLASS AND 23688 MILLION RESERVE ACCOUNT THERE ALSO ARE 132 MILLION OF SUBORDINATED CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA1 BY S&P THEY ARE PRICED AT 100 WITH AN INITIAL COUPON OF 3575 TO FLOAT 45 BASIS POINTS ABOVE ONEMONTH LIBOR THESE CERTIFICATES HAVE AN EXPECTED BULLET MATURITY OF MARCH 1 1997 AND LEGAL FINAL MATURITY OF JAN 15 1999 THERE ALSO IS A RESERVE ACCOUNT ENHANCING THE CERTIFICATES GENERAL MOTORS ACCEPTANCE IS A UNIT OF GENERAL MOTORS CORP ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 500 MILLION OF 6 EUROBONDS DUE AUG 10 1999 AT ISSUE AND REOFFER PRICE 9919 VIA JP MORGAN SECURITIES LTD AND SAMUEL MONTAGU & CO BONDS YIELD 618 A MARGIN OF 30 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR ABBEY NATIONAL PLC FEES 0275 BANCO ABCROMA BRAZIL 50 MILLION OF 9125 EUROBONDS DUE JAN 20 1997 AT ISSUE AND REOFFER PRICE 99756 VIA BEAR STEARNS INTERNATIONAL BONDS YIELD 922 A MARGIN OF 485 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY BARINGS PLC UK 100 MILLION OF UNDATED 925 EUROBONDS AT ISSUE AND REOFFER PRICE 99598 VIA BARING BROTHERS & CO AND HOARE GOVETT SECURITIES LTD BONDS YIELD 9295 ANNUALLY A MARGIN OF ABOUT 255 BASIS POINTS OVER 875 UK GILT DUE 2017 BONDS CALLABLE ON DEC 15 2024 AND EVERY 15 YEARS THEREAFTER FEES UNDISCLOSED CANADA SOVEREIGN 2 BILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT ISSUE AND REOFFER PRICE 9977 VIA CS FIRST BOSTON GOLDMAN SACHS INTERNATIONAL LTD AND UBS LTD PAYABLE QUARTERLY AT 025 POINT BELOW THREEMONTH DOLLAR LIBOR CALLABLE QUARTERLY AT PAR FROM FEBRUARY 1995 FEES 015 DE NATIONALE INVESTERINGSBANK NV DUTCH AGENCY 150 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE FEB 9 1995 AT ISSUE PRICE 100775 VIA DE NATIONALE INVESTERINGSBANK NV AND MORGAN STANLEY INTERNATIONAL LTD REOFFERED AT PAR TO YIELD 6 REPAYMENT BASED ON FORMULA 100 PLUS TOTAL OF 20 TIMES DIFFERENCE BETWEEN 514 MINUS FIVEYEAR GUILDER OFFER SWAP MINIMUM ZERO FEES 0875 DEUTSCHE BAUUND BODEN BANK AG GERMANY 100 MILLION MARKS OF FLOATINGRATE EURONOTES DUE FEB 2 2004 AT ISSUE PRICE 10005 VIA TRINKAUS & BURKHARDT KGAA PAYABLE SEMIANNUALLY AT SIXMONTH MARK LIBOR PLUS 00625 POINT FEES 02 DEUTSCHE AUSGLEICHBANK GERMANY 100 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE FEB 2 2004 AT ISSUE PRICE 10175 VIA TRINKAUS & BURKHARDT KGAA ANNUAL COUPON 5125 FIRST TWO YEARS SEMIANNUAL COUPON SIXMONTH LONDON MARK LIBOR FLAT YEARS THREE TO SIX ANNUAL COUPON 7 THEREAFTER FEES 22 FRANCE TELECOM FRANCE 200 MILLION SWISS FRANCS OF 4125 PUBLIC BONDS DUE OCT 19 1999 AT ISSUE PRICE 104125 VIA CREDIT SUISSE FEES 225 GASCART SA ARGENTINA 50 MILLION OF 9 EUROBONDS DUE JAN 20 1999 AT ISSUE REOFFER PRICE PAR VIA OPPENHEIMER INTERNATIONAL BONDS YIELD MARGIN OF 428 BASIS POINTS OVER COMPARABLE US TREASURY BONDS BEGIN TO AMORTIZE IN 1996 FEES 125 PAYABLE SEMIANNUALLY GOLDMAN SACHS GROUP LP US PARENT 200 MILLION OF FLOATINGRATE EURONOTES DUE FEB 1 1999 AT ISSUE AND REOFFER PRICE 999 VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY AT 0375 POINT ABOVE THREEMONTH DOLLAR LIBOR BONDS CALLABLE QUARTERLY FROM FEB 1 1996 FEES 02 INDUSTRIAS UNIDAS SA MEXICO 50 MILLION OF 85 EUROBONDS DUE JAN 27 1999 AT ISSUE AND REOFFER PRICE 9993 VIA PRUDENTIALBACHE SECURITIES UK INC BONDS YIELD 852 A MARGIN OF 350 BASIS POINTS OVER COMPARABLE US TREASURY GUARANTOR COBRA DE PASTJE AND TUBO DE PASTJE FEES ONE PAYABLE SEMIANNUALLY INVESTOR AB SWEDEN 200 MILLION OF 6125 EUROBONDS DUE JAN 27 1999 AT ISSUE PRICE 10096 VIA CS FIRST BOSTON REOFFERED AT 9946 TO YIELD 625 A MARGIN OF 113 BASIS POINTS OVER COMPARABLE US TREASURY FEES 1875 IMI BANK INTERNATIONAL CAYMAN ISLANDS ITALIAN PARENT 300 BILLION ITALIAN LIRE OF 8 EUROBONDS DUE MARCH 1 1999 AT ISSUE PRICE 1014 VIA IMI BANK LUXEMBOURG SA REOFFERED AT 9985 TO YIELD 804 GUARANTOR ISTITUTO MOBILIARE ITALIANO SPA FEES 1875 INTER AMERICAN DEVELOPMENT BANK SUPRANATIONAL 250 BILLION LIRE 77 EUROBONDS DUE FEB 3 2004 AT ISSUE PRICE 10185 VIA JP MORGAN SECURITIES LTD BONDS YIELD 772 AFTER FEES OF TWO IRISH PERMANENT BUILDING SOCIETY IRELAND 60 MILLION IRISH PUNTS OF 65 EUROBONDS DUE FEB 10 1999 AT ISSUE AND REOFFER PRICE 9966 VIA RIADA STOCKBROKERS BONDS YIELD 658 A MARGIN OF 80 BASIS POINTS OVER COMPARABLE IRISH GILT FEES UNDISCLOSED NEW ZEALAND SOVEREIGN 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 26 2001 AT ISSUE PRICE 1087 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS ONE FEES UNDISCLOSED 9401140068 940114 BUSINESS BRIEF HASBRO INC TOY MAKER EXPECTS TO POST ALMOST FLAT 4THQUARTER NET HASBRO INC SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF ABOUT 75 CENTS A SHARE AFTER TAKING A ONETIME 15 MILLION CHARGE OR NINE CENTS A SHARE AS A RESULT OF CLOSING ONE OF ITS PLANTS IN THE NETHERLANDS THAT COMPARES WITH EARNINGS OF 73 CENTS A SHARE FOR THE 1992 FOURTH QUARTER THE PAWTUCKET RI TOY MAKER ALSO SAID IT EXPECTS TO REPORT ITS FOURTHQUARTER REVENUE CLIMBED MORE THAN 10 FROM 1992 FOURTHQUARTER REVENUE OF 8313 MILLION THE COMPANY SAID IT DECIDED TO CLOSE THE NETHERLANDS FACILITY WHICH EMPLOYS 162 PEOPLE TO CONSOLIDATE ITS EUROPEAN OPERATIONS JILL KRUTICK A SALOMON BROTHERS INC ANALYST SAID THE PLANT CLOSURE SHOULD GENERATE SAVINGS FOR HASBRO BY THE END OF 1995 9401140067 940114 BUSINESS BRIEF IMPERIAL OIL LTD SHERRITT INC REACHES PACT TO ACQUIRE FERTILIZER ASSETS IMPERIAL OIL LTD SAID IT PLANS TO QUIT THE FERTILIZER MANUFACTURING BUSINESS BY SELLING MOST OF ITS FERTILIZER ASSETS TO SHERRITT INC IN A TRANSACTION THAT WOULD MORE THAN DOUBLE SHERRITT'S ANNUAL REVENUE FROM CHEMICALS AND FERTILIZERS IMPERIAL A TORONTO PETROLEUM AND CHEMICALS COMPANY 696OWNED BY EXXON CORP SAID IT PLANS TO SELL A PROFITABLE ALBERTA FERTILIZER PLANT AND CANADIAN PRAIRIES DISTRIBUTION TERMINALS TO SHERRITT A FORT SASKATCHEWAN ALBERTA RESOURCES AND ADVANCED MATERIALS MANUFACTURING COMPANY IMPERIAL SAID IT EXPECTS THE TRANSACTION TO CLOSE AT THE EARLIEST BY THE END OF FEBRUARY THE COMPANIES DIDN'T DISCLOSE THE PROPOSED TRANSACTION'S VALUE SHERRITT SAID IMPERIAL'S FERTILIZER OPERATIONS HAVE GENERATED ANNUAL REVENUE OF ABOUT 250 MILLION CANADIAN DOLLARS US189 MILLION OVER THE PAST FIVE YEARS IT SAID ITS OWN EXISTING FERTILIZER AND CHEMICALS OPERATIONS HAVE GENERATED AVERAGE ANNUAL REVENUE OF ABOUT C150 MILLION 1134 MILLION OVER THAT PERIOD 9401140066 940114 BUSINESS BRIEF RIGGS NATIONAL CORP PROFIT FOR FOURTH QUARTER REVERSES YEAREARLIER LOSS RIGGS NATIONAL CORP REPORTED A SMALL PROFIT FOR THE FOURTH QUARTER COMPARED WITH A LARGE YEAREARLIER LOSS REFLECTING AGGRESSIVE MOVES BY THE COMPANY TO CLEAN UP ITS PORTFOLIO OF NONPERFORMING LOANS RIGGS SAID NET INCOME FOR THE QUARTER WAS 31 MILLION OR NINE CENTS A SHARE COMPARED WITH A LOSS OF 241 MILLION OR 97 CENTS A SHARE A YEAR EARLIER THE BANK HOLDING COMPANY BASED IN WASHINGTON DC SAID ITS NONPERFORMING ASSETS FELL 60 MILLION FOR THE QUARTER TO THE LOWEST LEVEL IN MORE THAN THREE YEARS THE BANK HAD TOTAL ASSETS OF 478 BILLION ON DEC 31 THE LOAN LOSS PROVISION FELL TO 21 MILLION FROM 273 MILLION NET INTEREST INCOME ROSE TO 352 MILLION FROM 321 MILLION FOR 1993 RIGGS HAD A LOSS OF 942 MILLION OR 365 A SHARE COMPARED WITH A 1992 LOSS OF 211 MILLION OR 87 CENTS A SHARE THE FULLYEAR LOAN LOSS PROVISION WAS 693 MILLION UP FROM 521 MILLION 9401140065 940114 BUSINESS BRIEF INTERNATIONAL FAMILY ENTERTAINMENT OFFER FOR NOSTALGIA NETWORK CALLED OFF BY MEDIA CONCERN INTERNATIONAL FAMILY ENTERTAINMENT INC TERMINATED ITS TENDER OFFER FOR THE SHARES OF NOSTALGIA NETWORK INC THE TENDER OFFER WAS PRICED AT 2 A SHARE FOR COMMON STOCK AND AT 200 A SHARE FOR ALL PREFERRED SHARES OUTSTANDING BUT IFE'S OFFER WHICH HAD BEEN EXTENDED TWICE BEFORE WAS REJECTED BECAUSE THE NOSTALGIA BOARD CONSIDERED IT TO BE TOO LOW AMONG OTHER REASONS IFE COULD HAVE COME BACK WITH A HIGHER BID BUT THE COMPANY DECLINED TO COMMENT YESTERDAY IFE WHICH OWNS THE FAMILY CABLE CHANNEL IS A VIRGINIA BEACH VA MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON IFE SAID IT WAS INFORMED BY THE DEPOSITARY THAT ABOUT 56 MILLION OF THE APPROXIMATELY 20 MILLION COMMON SHARES OUTSTANDING HAD BEEN TENDERED AS OF YESTERDAY BUT NO PREFERRED SHARES 9401140064 940114 BUSINESS BRIEF BASF CORP POLYESTERFILAMENT OUTPUT TO END AT TENNESSEE PLANT BASF CORP CHARLOTTE NC SAID IT WILL END POLYESTERFILAMENT PRODUCTION AT ITS LOWLAND TENN PLANT BY JUNE 1 RESULTING IN LAYOFFS FOR 450 WORKERS THE COMPANY HAS DISCUSSED TERMS OF SALE FOR THE LOWLAND PLANT BUT FAILED TO REACH AN AGREEMENT WITH WELLMAN INC SHREWSBURY NJ BASF A UNIT OF BASF AG HAD ANNOUNCED INTENTIONS ABOUT A YEAR AGO TO PULL OUT OF THE POLYESTER CHIP AND FILAMENT BUSINESS WHILE BASF CONTINUES TO SEEK A BUYER FOR THE POLYESTERCHIP OPERATION ABOUT 100 WORKERS WILL REMAIN IN MANUFACTURING AND SUPPORT WORK ANOTHER 630 WORKERS WILL BE EMPLOYED AT THE NYLON OPERATIONS A CORE BUSINESS FOR THE COMPANY 9401140063 940114 UNHEALTHY SALES AFFLICT MANY SUPPLIERS OF MEDICAL GOODS AS HOSPITALS CUT COSTS BY FELICIA PAIK STAFF REPORTER OF THE WALL STREET JOURNAL KATHERINE LEBLANC USED TO STOCK THE SHELVES AT TRINITY VALLEY MEDICAL CENTER WITH HOSPITAL SUPPLIES THAT WOULD LAST BETWEEN 45 AND 60 DAYS NOW MS LEBLANC WHO IS DIRECTOR OF MATERIALSMANAGEMENT AT THE PALESTINE TEXAS HOSPITAL STRIVES TO KEEP ENOUGH SUPPLIES ON HAND FOR JUST THREE DAYS SO WHEN THE TRUCK DRIVES UP TO OUR DOORS WE REALLY NEED THE STUFF SHE SAYS MS LEBLANC'S HOSPITAL OPERATED BY ORNDA HEALTHCORP IS NOT ALONE IN THE MIDST OF DEBATE OVER NATIONAL HEALTHCARE REFORM HEALTHCARE PROVIDERS GREW THRIFTY IN 1993 HOSPITALS REDUCED THEIR COSTS FOR EXAMPLE BY CUTTING MONEY AND SPACE ALLOTTED FOR SCALPELS AND OTHER SUPPLIES THE SPACE WAS THEN UTILIZED FOR OTHER PURPOSES MAINTAINING LOW INVENTORY IS A TOOL TO CONTROL COSTS SAYS MICHAEL NEELY DIRECTOR OF MATERIALSMANAGEMENT AT EGLESTON CHILDREN'S HOSPITAL IN ATLANTA IF HOSPITALS MANAGE THEIR INVENTORY EFFICIENTLY OVERALL COSTS COME DOWN AND THAT WILL ULTIMATELY BENEFIT THE PATIENT ALTHOUGH PATIENTS MAY NOT SUFFER THE MAKERS OF BILLIONS OF DOLLARS IN GOODS THAT USED TO STOCK THOSE SHELVES ALREADY FEEL THE EFFECTS IT'S CREATED A SLOWDOWN IN BUSINESS WHICH ACCELERATED DURING THE FIRST QUARTER OF 1993 AND CONTINUED FORWARD SAYS A US SURGICAL CORP SPOKESMAN SALES OF US SURGICAL WHICH MAKES SURGICAL STAPLES AND OTHER PRODUCTS SLIPPED 19 IN THE 1993 THIRD QUARTER TO 238 MILLION FROM 293 MILLION A YEAR AGO AT ACUSON CORP A MAKER OF ULTRASOUND IMAGING SYSTEMS THIRDQUARTER SALES FELL 26 TO 67 MILLION SALES WERE DOWN ALSO AT BECTONDICKINSON & CO AND WERE MOSTLY FLAT AT LARGER MEDICAL SUPPLIERS SUCH AS BAXTER INTERNATIONAL INC AND ST JUDE MEDICAL INC ANALYST SAM NAVARRO OF FURMAN SELZ INC WHO CALLS 1993 A TOUGH YEAR FOR THE INDUSTRY EXPECTS MOST COMPANIES TO SHOW FINANCIAL PERFORMANCES BELOW PROJECTED NUMBERS MR NAVARRO BLAMES THE POOR PERFORMANCES ON PENDING HEALTHCARE REFORMS WHICH CAUSED MANY HOSPITALS TO FREEZE THEIR BUDGETS AT ST LUKE MEDICAL CENTER IN PASADENA CALIF ONE OF 12 HOSPITALS OPERATED BY SUMMIT HEALTH LTD WORKERS NOW MAKE EVERY ATTEMPT TO USE EXISTING SUPPLIES BEFORE ANY NEW PURCHASING IS ALLOWED ACCORDING TO JEFFREY GALL ST LUKE'S DIRECTOR OF MATERIALSMANAGEMENT WE USED TO STOCK ALL DIFFERENT SIZES OF GRAFTS BUT NOW WE DON'T MR GALL SAYS WE USED TO DO A LOT OF HIP CASES AND NEUROSURGERY AND HAD CUSTOM PACKS OF INSTRUMENTS FOR THEM BUT NOW WE TEND TO KEEP ONLY ONE SET AND THEN ORDER MORE MR GALL SAYS SUMMIT SIGNED A JOINT CONTRACT AT THE BEGINNING OF 1993 REDUCING PURCHASING COSTS BY 9 TO 12 ANNUALLY THAT CONTRACT IS EVIDENCE OF ANOTHER PHENEMENON CHANGING MEDICALSUPPLY SALES HOSPITALS ARE COMBINING FORCES TO CUT COSTS FOR THE PERIOD ENDED SEPT 30 1993 THE JUSTICE DEPARTMENT REPORTED 56 FILINGS OF HOSPITAL MERGERS MORE THAN DOUBLE THE 21 FOR FISCAL 1992 IN EARLY DECEMBER ORNDA ANNOUNCED THAT IT'S ACQUIRING SUMMIT CITING THE SINGLE BIGGEST ADVANTAGE OF THE CONSOLIDATION SAVING MONEY THE PREVIOUS MONTH ORNDA ANNOUNCED PLANS TO MERGE WITH AMERICAN HEALTHCARE MANAGEMENT INC BEFORE SUMMIT'S ONEYEAROLD CONTRACT WAS SIGNED MR GALL SAYS HE WAS PAYING BIGTIME DOLLARS TO KEEP UP HIS INVENTORY FOR EXAMPLE HE SAYS THAT BEFORE THE PURCHASING AGREEMENT SUTURES COST BETWEEN 100 AND 500 DEPENDING ON THE SIZE OF THE BOX UNDER THE CONTRACT PRICES DROPPED TO BETWEEN 50 AND 300 OVER THE NEXT SEVERAL YEARS MORE MERGERS WILL HAPPEN SO HOSPITALS CAN GRAB ON TO THESE KINDS OF CONTRACTS MR GALL SAYS I'M IN AWE WATCHING MY SPENDING BEING REDUCED 9401140062 940114 THE BUSINESS OF LAW MISTRIAL IS DECLARED IN ERIK MENENDEZ MURDER CASE JURY STILL OUT ON BROTHER BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL THE LOS ANGELES JURY IN THE CLOSELY WATCHED MURDER TRIAL OF ERIK MENENDEZ WAS DISMISSED LATE YESTERDAY AFTER FAILING TO REACH A VERDICT PROSECUTORS HAVE SAID THEY WOULD SEEK A RETRIAL MR MENENDEZ 23 YEARS OLD WAS ACCUSED WITH HIS OLDER BROTHER OF MURDERING THEIR WEALTHY PARENTS FOUR YEARS AGO A SEPARATE JURY CONSIDERING THE CHARGES AGAINST LYLE MENENDEZ 26 CONTINUED TO DELIBERATE THE BROTHERS TESTIFIED THAT THEY HAD FEARED FOR THEIR LIVES AFTER YEARS OF SEXUAL ABUSE BY THEIR FATHER THE INABILITY OF ERIK'S JURY TO REACH A UNANIMOUS DECISION AFTER FIVE MONTHS OF TRIAL AND 20 DAYS OF DELIBERATIONS SHOWS HOW COMPLEX QUESTIONS OF GUILT AND JUSTIFICATION CAN POLARIZE JURORS EVEN IN CASES WHERE CONFESSED KILLERS SHOT AT POINTBLANK RANGE A GUILTY VERDICT ON THE TOUGHEST CHARGE OF FIRSTDEGREE MURDER COULD HAVE BROUGHT THE DEATH PENALTY TWO JURIES WERE USED IN THE CASE BECAUSE SOME EVIDENCE WAS PRESENTED AGAINST ONLY ONE BROTHER THOUGH BOTH WERE CHARGED WITH THE SAME CRIMES ARISING FROM THE SAME BASIC FACTS AFTER DECLARING A MISTRIAL JUDGE STANLEY WEISBERG TOLD MEMBERS OF ERIK'S JURY THEY COULD SPEAK TO LAWYERS BUT INSTRUCTED THEM NOT TO SPEAK TO THE PRESS UNTIL THE SECOND JURY RETURNS SOME OBSERVERS SUGGESTED THAT THE DEADLOCK MEANT SOME JURORS IN ERIK'S CASE GAVE CREDENCE TO CLAIMS BY HIS LAWYER LESLIE ABRAMSON THAT THE OLDER BROTHER HAD BEEN THE INSTIGATOR AND ERIK FOLLOWED OUT OF PANIC AND CONFUSION BUT LACKED THE INTENT TO KILL REQUIRED FOR A MURDER CONVICTION THE CASE STEMMED FROM THE AUG 20 1989 SHOTGUN SLAYINGS OF JOSE MENENDEZ AND HIS WIFE KITTY IN THEIR BEVERLY HILLS CALIF HOME THE KILLINGS ATTRACTED IMMEDIATE ATTENTION NOT ONLY FOR THEIR BRUTALITY BUT ALSO BECAUSE THE SENIOR MR MENENDEZ CHAIRMAN OF THE LOS ANGELES VIDEOCASSETTE RETAILER LIVE ENTERTAINMENT INC WAS WELL KNOWN IN HOLLYWOOD SOCIAL AND BUSINESS CIRCLES AFTER INITIAL SPECULATION THAT THE COUPLE HAD BEEN TARGETS OF ORGANIZED CRIME THEIR CHILDREN WHO STOOD TO INHERIT A 14 MILLION ESTATE WERE ARRESTED A FEW MONTHS LATER WHEN THEY CONCEDED A FEW MONTHS BEFORE TRIAL THAT THEY HAD FIRED THE SHOTS IT SEEMED AN OPENANDSHUT MATTER BUT OVER THE COURSE OF THE FIVEMONTH TRIAL A CASE THAT HAD BEEN BILLED BY PROSECUTORS AS CLASSIC COLDBLOODED MURDER WAS SHAPED BY DEFENSE LAWYERS INTO A WRENCHING CHRONICLE OF SUFFERING AND DESPERATION THEIR LAWYERS ARGUED THAT LYLE'S AND ERIK'S LIFELONG EXPERIENCE OF SEXUAL AND EMOTIONAL ABUSE HAD TRAUMATIZED THEM INTO BELIEVING THAT THEIR FATHER WITH THEIR MOTHER'S TACIT ASSENT WAS PREPARED TO KILL THEM BOTH BROTHERS TOOK THE STAND TEARFULLY CLAIMING THAT THEY LASHED OUT AFTER THEIR FATHER THREATENED THEM NOT TO REVEAL THE FAMILY'S HORRIFYING SECRET THE PROSECUTION ARGUED THAT THE ALLEGATIONS OF ABUSE WERE FABRICATED AND THAT THE BROTHERS WERE SPOILED RICH KIDS WHO HAD ACTED MERELY OUT OF HATRED AND GREED ALTHOUGH THE LOS ANGELES SUPERIOR COURT TRIAL ISN'T LIKELY TO BREAK LEGAL GROUND IT SERVED AS AN IMPORTANT TESTING ARENA FOR NEWER THEORIES JUSTIFYING THE USE OF VIOLENCE UNDER TRADITIONAL SELFDEFENSE DOCTRINE PEOPLE MAY KILL ONLY WHEN THEY HAVE A REASONABLE FEAR THAT THEIR LIVES ARE IN IMMINENT DANGER IN SUCH CASES THEY ARE GUILTY OF NO CRIME BUT COURTS IN CALIFORNIA AND A GROWING MINORITY OF STATES HAVE RULED THAT PEOPLE MAY BE PARTIALLY JUSTIFIED IN KILLING WHEN THEY HAVE A FEAR OF BEING KILLED THAT IS UNREASONABLE SUCH IMPERFECT SELFDEFENSE CASES DON'T RESULT IN ACQUITTALS BUT THE CRIME IS MANSLAUGHTER NOT MURDER LAST MONTH JUDGE WEISBERG RULED THAT THE MENENDEZ BROTHERS COULDN'T POSSIBLY HAVE HAD A REASONABLE FEAR THEY WOULD BE IMMINENTLY KILLED AND THAT MANSLAUGHTER WOULD BE THEIR BEST HOPE BY THEIR OWN TESTIMONY THEY HAD OTHER MEANS TO DEAL WITH THE THREAT THE JUDGE SAID CITING THE BROTHERS' ADMISSION THAT THEY WERE ABLE TO LEAVE THEIR HOME ON THE FATEFUL NIGHT TO GO TO THEIR CAR AND LOAD THEIR GUNS BEFORE TRIAL THE MENENDEZ CASE HAD ALSO RAISED QUESTIONS ABOUT THE LEGAL PRIVILEGE ACCORDED TO CONVERSATIONS BETWEEN PSYCHOTHERAPISTS AND PATIENTS IN A 1992 RULING THE CALIFORNIA SUPREME COURT BROADLY INTERPRETED PRECEDENT TO PROTECT TAPES OF THERAPY SESSIONS THAT HAD BEEN OVERHEARD BY A THIRD PARTY IN THIS CASE THE MISTRESS OF THE BROTHERS' THERAPIST HOWEVER SOME TAPES WERE RULED ADMISSIBLE UNDER A DANGEROUS PATIENT EXCEPTION TO CONFIDENTIALITY RULES ON THEM THE BROTHERS CONFESSED TO THE KILLINGS AND ALLEGEDLY THREATENED THE THERAPIST'S MISTRESS AND WIFE BUT DIDN'T MENTION SEXUAL ABUSE LAST YEAR JUDGE WEISBERG ADMITTED ANOTHER TAPE ON THE THEORY THAT THE DEFENDANTS HAD WAIVED THE PRIVILEGE BY MAKING THEIR OWN EMOTIONAL STATE AN ISSUE AT TRIAL PERHAPS MORE THAN ANY OTHER COURT CASE IN RECENT MEMORY THE MENENDEZ TRIAL TAPPED INTO A DEEP VEIN OF NATIONAL ANXIETY ABOUT SUCH CURRENT ISSUES AS THE PERVASIVENESS OF CHILD ABUSE THE DEGREE TO WHICH CLAIMS OF VICTIMHOOD CAN DIMINISH PERSONAL RESPONSIBILITY AND EVEN THE LEGACY OF THE MONEY CULTURE OF THE 1980S INDEED AS THE CASE PROGRESSED MENENDEZ TRIALWATCHING BECAME SOMETHING OF A NATIONAL OBSESSION COURT TV WHICH CARRIED THE ONLY GAVELTOGAVEL COVERAGE REPORTED THAT IT RECEIVED THE FOURTHHIGHEST NIELSEN RATING AMONG CABLE NETWORKS DURING THE DAY WHEN THE TRIAL WAS GENERALLY AIRED CELEBRITIES SUCH AS HOLLY HUNTER AND STEVEN SPIELBERG TALKED PUBLICLY ABOUT FOLLOWING THE CASE 9401140061 940114 INTERNATIONAL BRIEF ASKO DEUTSCHE KAUFHAUS AG GERMAN RETAILER SELLS 10 OF CHAIN TO PRIVATE CONCERN ASKO DEUTSCHE KAUFHAUS AG A GERMAN RETAILER SAID IT SOLD 10 OF ITS HOMEIMPROVEMENT CHAIN PRAKTIKER BAUUND HEIMWERKERMAERKTE AG TO THE HIRSCH GROUP A PRIVATE COMPANY AN ASKO SPOKESMAN DECLINED TO COMMENT ON THE PURCHASE PRICE ASKO STILL OWNS 75 OF PRAKTIKER AND SAID IT INTENDS TO SEEK A STOCKEXCHANGE LISTING FOR IT IN THE SUMMER OF 1995 THE REMAINING 15 OF PRAKTIKER WAS ACQUIRED LAST YEAR BY A BANKING CONSORTIUM LED BY DEUTSCHE BANK AG AND BERLINER BANK THE COMPANY HAD SAID AT ITS SHAREHOLDERS MEETING LAST YEAR THAT IT PLANNED TO SELL PART OF PRAKTIKER IN A STATEMENT YESTERDAY KLAUS WIEGANDT CHAIRMAN OF ASKO'S MANAGEMENT BOARD SAID THIS REPRESENTS A FURTHER IMPORTANT STEP IN THE IMPLEMENTATION OF OUR MEDIUMTERM STRATEGY TO CONCENTRATE ON CORE BUSINESS AND MAKE OPERATIONS MORE INDEPENDENT THE DUESSELDORFBASED HIRSCH GROUP IS INVOLVED IN REAL ESTATE AND INVESTMENTS IT ISN'T PART OF THE HIRSCH AG TEXTILE FIRM ALSO BASED IN DUESSELDORF 9401140060 940114 ANALYSTS SAY PETROFINA IS STILL HURT BY PRICE OF OIL AND ECONOMY BRUSSELS EUROPE'S WEAK ECONOMY AND LOW OIL PRICES WILL CONTINUE TO DEPRESS PROFIT AT BELGIAN OIL AND GAS GROUP PETROFINA SA IN 1994 ANALYSTS SAID HOWEVER THERE COULD BE A MARKED INCREASE IN 1995 ONCE INVESTMENTS IN UPGRADING ITS ANTWERP REFINERY START TO YIELD WIDER PROFIT MARGINS THEY ADDED A PETROFINA SPOKESWOMAN DECLINED TO COMMENT ON PROFIT EXPECTATIONS FOR 1993 AND 1994 AHEAD OF THE ANNOUNCEMENT OF RESULTS IN EARLY FEBRUARY OTHER THAN TO SAY THAT OF COURSE 1993 WAS DIFFICULT SHE SAID HOWEVER THAT ONCE THE ANTWERP INVESTMENT IS COMPLETED AND COSTEFFICIENCY MEASURES IMPLEMENTED PETROFINA BELIEVES IT WILL IN 1995 BE BETTER PREPARED TO BENEFIT FROM ALL OPPORTUNITIES ANALYSTS MOSTLY FORECAST THAT 1993 PROFIT WILL DECLINE BY AROUND 20 FROM 352 BELGIAN FRANCS 976 A SHARE IN 1992 HOWEVER ONE POINTED OUT THAT NET PROFIT WOULD BE BOLSTERED BY ONETIME GAINS FROM THE SALES OF NORTH SEA OIL FIELDS AND A STAKE IN ENERGY HOLDING COMPANY TRACTEBEL SA WHILE FORECASTING A SLIGHT UPTURN IN 1994 PROFIT MOST ANALYSTS SAID THEIR FORECASTS WERE LIKELY A BIT OPTIMISTIC PETROFINA POSTED A PROFIT OF 46 BILLION FRANCS 1276 MILLION IN 1992 DOWN 72 FROM A YEAR EARLIER RECURRING PROFIT FELL 50 TO 79 BILLION FRANCS 9401140059 940114 BUSINESS BRIEF COUNTRY STAR RESTAURANTS INC CONCERN PAYS 16 MILLION FOR LAND PARCEL IN LAS VEGAS COUNTRY STAR RESTAURANTS INC SAID IT PURCHASED A VACANT PARCEL OF LAND IN LAS VEGAS FOR ABOUT 16 MILLION ON WHICH IT PLANS TO BUILD A RESTAURANT THE SANTA MONICA CALIF COMPANY SAID IT PAID HALF OF THE PURCHASE PRICE IN CASH AND RECEIVED A ONEYEAR 8 MORTGAGE FOR THE BALANCE OF THE PURCHASE PRICE THE COMPANY ALSO SAID IT MADE A 50000 NONREFUNDABLE PAYMENT TO SECURE AN EXTENSION TO OBTAIN THE NECESSARY APPROVALS TO ACQUIRE A LEASE FOR A COUNTRY STAR RESTAURANT TO BE LOCATED ADJACENT TO THE MAIN ENTRANCE TO THE UNIVERSAL STUDIOS THEME PARK AND UNIVERSAL CITYWALK DEVELOPMENT IN UNIVERSAL CITY CALIF COUNTRY STAR RESTAURANTS SAID IT CLOSED ITS INITIAL PUBLIC OFFERING ON DEC 22 1993 IN WHICH IT SOLD INCLUDING OVERALLOTMENTS 16 MILLION SHARES AT 5 A SHARE AND ABOUT 24 MILLION REDEEMABLE WARRANTS 9401140058 940114 WHAT'S NEWS WORLDWIDE YELTSIN ASSURED CLINTON HE'LL PRESS AHEAD WITH REFORMS DESPITE OPPOSITION THE RUSSIAN PRESIDENT EMPHASIZED THAT THERE IS NO TURNING BACK FROM FIGHTING INFLATION AND CONTINUING TO PRIVATIZE TREASURY SECRETARY BENTSEN SAID AFTER A MOSCOW MEETING IN FACT THE YELTSIN GOVERNMENT WANTS TO ACCELERATE SOME OF ITS MARKET REFORMS BENTSEN SAID CLINTON AND YELTSIN ALSO AGREED THAT THE US AND RUSSIA WILL STOP AIMING THEIR NUCLEAR WEAPONS AT EACH OTHER WITH THE MISSILES RETARGETED TOWARD OCEANS YELTSIN PREDICTED THE THREEDAY SUMMIT WOULD PRODUCE PROFOUND RESULTS AS UKRAINE'S KRAVCHUK PREPARED TO FLY TO MOSCOW TO SIGN AN ACCORD TODAY FOR DISMANTLING THE UKRAINIAN NUCLEAR ARSENAL CRITICISM OF THE PLAN WAS MOUNTING IN THAT NATION'S PARLIAMENT RENO AND HER AIDES BEGAN CONTACTING PROSPECTIVE CANDIDATES TO INVESTIGATE CLINTON'S INVESTMENT IN A FAILED ARKANSAS REALESTATE COMPANY THE US ATTORNEY GENERAL ASKED BY THE PRESIDENT WEDNESDAY TO NAME A SPECIAL COUNSEL OFFERED NO CLUES AS TO WHEN SHE MIGHT ANNOUNCE HER CHOICE SARAJEVO'S MAIN HOSPITAL TOOK A DIRECT HIT IN THE LATEST ROUND OF SHELLING IN BOSNIA'S CAPITAL AND ONE PERSON DIED MEANWHILE BOSNIAN OFFICIALS THREATENED TO URGE CONSUMERS IN FRIENDLY COUNTRIES TO BOYCOTT GOODS FROM NATO STATES THAT OBSTRUCT BOSNIA'S DEFENSE WHETHER IN THE CONTEXT OF AIR STRIKES OR THE ARMS EMBARGO ITALY'S PREMIER RESIGNED OPENING THE WAY FOR GENERAL ELECTIONS THAT ARE EXPECTED TO OUST THE SCANDALSCARRED PARTIES THAT HAVE DOMINATED THE COUNTRY FOR FIVE DECADES CIAMPI 73 WAS APPOINTED IN APRIL TO OVERSEE REFORM TWO MEN WERE ARRESTED AND CHARGED WITH CONSPIRACY IN LAST WEEK'S ATTACK ON FIGURE SKATER NANCY KERRIGAN THE BODYGUARD FOR A RIVAL SKATER TONYA HARDING AND ANOTHER MAN WERE ARRESTED IN CONNECTION WITH THE CROWBAR ATTACK IN DETROIT A JUDGE IN LOS ANGELES DECLARED A MISTRIAL IN THE MURDER CASE AGAINST ERIK MENENDEZ ONE OF TWO BROTHERS WHO ADMITTED KILLING THEIR PARENTS AFTER JURORS COULDN'T REACH A VERDICT A SEPARATE JURY WAS DELIBERATING CHARGES AGAINST THE OTHER BROTHER LYLE BOTH CLAIM THE SLAYINGS WERE IN SELFDEFENSE AFTER YEARS OF ABUSE MENTAL ILLNESS IS CONCENTRATED AMONG 14 OF THE US POPULATION WHO HAVE THREE OR MORE EXPERIENCES WITH ALCOHOLISM DEPRESSION OR OTHER PSYCHIATRIC DISORDERS IN THEIR LIFE A SURVEY FOUND NEARLY HALF OF ALL AMERICANS HAVE A PSYCHIATRIC DISORDER AT LEAST ONCE BUT THAT INCLUDES MILD DEPRESSION AND ANXIETY TB RESEARCHERS SAID THEY HAVE DISCOVERED THE GENE MUTATION THAT ENABLES THE TUBERCULOSIS BACTERIA TO DEVELOP RESISTANCE TO A WIDELY USED ANTITB DRUG THE FINDING IS EXPECTED TO HELP IN THE SEARCH FOR DRUGS TO TREAT DRUGRESISTANT TUBERCULOSIS WHICH REPRESENTS ONEQUARTER OF TB CASES IN SOME CITIES MEXICO'S OFFICIAL PEACE ENVOY ACCEPTED AN INDIAN GUERRILLA MOVEMENT AS A POLITICAL AND MILITARY FORCE TAKING A SECOND STEP TOWARD MEETING REBEL DEMANDS FOR TALKS HE ALSO SAID HE HAD RECEIVED MESSAGES THAT APPEAR TO SIGNAL THE BEGINNING OF A NEGOTIATING PROCESS BUT IT WASN'T CLEAR IF HE HAD HEARD DIRECTLY FROM REBEL LEADERS NASA ANNOUNCED THAT THE HUBBLE SPACE TELESCOPE HAS BEEN REPAIRED AND SAID THE ORBITING OBSERVATORY CAN NOW TAKE THE SHARPEST PHOTOS IN HISTORY OF DISTANT STARS THE 16 BILLION TELESCOPE WAS LAUNCHED IN 1990 WITH A FLAWED MIRROR A SHUTTLE CREW INSTALLED CORRECTIVE OPTICS AND A NEW CAMERA ASPIN ORDERED THE ARMY AND MARINE CORPS TO OPEN COMBAT SUPPORT UNITS TO WOMEN TROOPS WHILE CONTINUING TO BAR THEM FROM FRONTLINE INFANTRY SERVICE THE OUTGOING DEFENSE SECRETARY SAID THE CURRENT RISK RULE KEEPING WOMEN OUT OF DANGEROUS JOBS WOULD BE LIFTED OCT 1 AND THAT THE TERM DIRECT COMBAT WOULD BE REDEFINED ISRAELI OFFICIALS SAID THEY HOPE THAT CLINTON WILL OBTAIN A PLEDGE FROM SYRIA'S ASSAD AT A GENEVA SUMMIT SUNDAY TO SET UP EMBASSIES AND OPEN THE ISRAELISYRIAN BORDERS TO TOURISM AND TRADE ISRAEL HAS BEEN WAITING FOR SYRIA TO DEFINE ITS PEACE TERMS BEFORE ISRAEL SAYS HOW MUCH OF THE GOLAN HEIGHTS IT IS WILLING TO RETURN 9401140057 940114 BUSINESS BRIEF CRESTAR FINANCIAL CORP FOURTHPERIOD NET ROSE 39 ON HIGHER INTEREST INCOME CRESTAR FINANCIAL CORP A RICHMOND VA BANK HOLDING COMPANY SAID FOURTHQUARTER NET INCOME ROSE 39 BECAUSE OF HIGHER INTEREST INCOME AND LOWER PROVISIONS FOR LOAN LOSSES A FOCUS ON CONSUMER AND MIDDLEMARKET LENDING ALSO HELPED TO BOOST EARNINGS A SPOKESMAN SAID NET INCOME TOTALED 387 MILLION OR 101 A SHARE COMPARED WITH 279 MILLION OR 78 CENTS A SHARE A YEAR AGO NET INTEREST INCOME TOTALED 138 MILLION UP 6 FROM 1296 MILLION A YEAR AGO THE PROVISION FOR LOAN LOSSES WAS 135 MILLION DOWN FROM 187 MILLION IN THE 1992 FOURTH QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CRESTAR WAS UNCHANGED AT 41875 9401140056 940114 CREDIT RATINGS REPUBLIC OF TURKEY MOODY'S INVESTOR SERVICE INC SAID IT DOWNGRADED THE NATION'S LONGTERM DEBT RATING BECAUSE OF DETERIORATION OF TURKEY'S PUBLIC FINANCES THE DOWNGRADE TO BA1 FROM BAA3 AFFECTS 85 BILLION IN DEBT SECURITIES MOODY'S SAID THAT IT EXPECTS TURKEY'S HIGH FISCAL DEFICITS TO PERSIST DESPITE THE GOVERNMENT'S EFFORTS TO INCREASE REVENUE SPENDING PRESSURES ARE LIKELY TO REMAIN STRONG AND THE GOVERNMENT MAY HAVE TO MOVE CAUTIOUSLY SO AS NOT TO CAUSE EXCESSIVE SOCIAL DISRUPTION THE RATING AGENCY SAID TURKEY'S STRONG DOMESTIC DEMAND AND THE DECLINE IN THE COUNTRY'S TRADE BARRIERS THROUGH 1995 ARE LIKELY TO KEEP THE CURRENTACCOUNT DEFICIT HIGHER THAN IN RECENT YEARS THE COMPANY SAID BUT THE REMOVAL OF TRADE BARRIERS MOODY'S SAID WILL REQUIRE SIGNIFICANT ECONOMIC RESTRUCTURING IN ENSUING YEARS 9401140055 940114 BUSINESS BRIEF SOUTHERN NEW ENGLAND TELECOM SPENDING OF 45 BILLION SET DURING THE NEXT 15 YEARS SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP NEW HAVEN CONN SAID IT WOULD SPEND 45 BILLION DURING THE NEXT 15 YEARS TO ENHANCE THE STATE'S TELECOMMUNICATIONS SYSTEM THE COMPANY WHICH OWNS SOUTHERN NEW ENGLAND TELEPHONE SAID THE SPENDING PROGRAM WILL SEEK TO CREATE A STATEWIDE INFORMATION SUPERHIGHWAY REACHING ABOUT 500000 HOMES AND BUSINESSES WITHIN THREE YEARS BY 2009 SOUTHERN NEW ENGLAND TELEPHONE SAID ALL ITS CUSTOMERS WILL HAVE ACCESS TO THE NEW TELECOMMUNICATIONS SYSTEM IN JULY 1993 THE COMPANY WAS ENCOURAGED BY STATE REGULATORS TO MORE AGGRESSIVELY PURSUE INVESTMENT IN CONNECTICUT'S TELECOMMUNICATIONS INFRASTRUCTURE AT THE TIME REGULATORS SAID SOUTHERN NEW ENGLAND'S PROPOSED MODERNIZATION PLANS DIDN'T GO FAR ENOUGH YESTERDAY REGULATORS WELCOMED THE COMPANY'S STEPPEDUP TELECOMMUNICATIONS PROGRAM 9401140054 940114 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC COMPANY IS EXPECTED TO FILE REORGANIZATION THIS MONTH COLUMBIA GAS SYSTEM INC IS EXPECTED TO FILE A PLAN OF REORGANIZATION SOMETIME THIS MONTH IN US BANKRUPTCY COURT IN WILMINGTON DEL ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN THE NATURALGAS COMPANY BASED IN WILMINGTON WHOSE MAIN UNIT IS COLUMBIA GAS TRANSMISSION CORP HAS RECEIVED SEVERAL EXTENSIONS OF ITS EXCLUSIVE PERIOD TO FILE A PLAN OF REORGANIZATION THE LATEST EXTENSION IS TO EXPIRE MARCH 22 COLUMBIA SAID LAST YEAR THAT ITS PROJECTED TIMETABLE FOR EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS HAD BEEN SEVERELY DISRUPTED BY LEGAL AND OTHER ISSUES THE COMPANY WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION UNDER THE US BANKRUPTCY CODE IN MID1991 HAD BEEN DEVASTATED WHEN SPOT GAS PRICES PLUNGED WHILE IT REMAINED OBLIGATED TO THOUSANDS OF RESTRICTIVE ABOVEMARKETPRICE GAS CONTRACTS THE DISPUTED CLAIMS OVER ITS CANCELLATION OF NATURALGAS CONTRACTS COULD EXCEED 10 BILLION 9401140053 940114 BUSINESS BRIEF OPTICAL RADIATION CORP SHARE PRICE JUMPS ON NEWS A GROUP HAS ACQUIRED 62 OPTICAL RADIATION CORP'S SHARE PRICE ROSE NEARLY 10 IN HEAVY TRADING AFTER AN INVESTMENT GROUP LED BY BENSON EYECARE CORP SAID IT HAS ACQUIRED A 62 STAKE IN THE AZUSA CALIF COMPANY BENSON A RYE NY MARKETER OF READYTOWEAR GLASSES SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT APPROACHED OPTICAL ABOUT A POSSIBLE FRIENDLY BUSINESS COMBINATION IN JULY BUT AFTER SEVERAL DISCUSSIONS OPTICAL INDICATED THAT IT WASN'T IN A POSITION TO CONSIDER AN OFFER FOR THE COMPANY AT THIS TIME THE FILING SAID OPTICAL RADIATION PRODUCES PRECISION OPTICAL SURGICAL PRODUCTS AND IS AN EYEGLASS WHOLESALER IN NASDAQ STOCK MARKET TRADING OPTICAL'S STOCK ROSE 150 OR 97 TO CLOSE AT 17 A SHARE IN HEAVY TRADING GARY PATTEN OPTICAL RADIATION'S CHIEF FINANCIAL OFFICER SAID WE DON'T WANT TO COMMENT UNTIL WE'VE READ THE SEC FILING THE COMPANY ALSO SAID LATE YESTERDAY IN A STATEMENT THAT IT HASN'T HELD MERGER NEGOTIATIONS WITH BENSON 9401140052 940114 IS PI PANKAU LESS THAN MEETS THE EYE VERACITY OF DETECTIVE'S EXPLOITS ARE QUESTIONED BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON PRIVATE EYE EDMUND J PANKAU CLAIMS TO HAVE PULLED OFF EXPLOITS THAT WOULD MAKE SAM SPADE ENVIOUS IN HIS TWODECADE CAREER THE 48YEAROLD INVESTIGATOR ACCORDING TO PUBLISHED REPORTS HELPED NAB A NOTORIOUS GANG OF JEWEL THIEVES VIDEOTAPED DONNA RICE AND FORMER US SEN GARY HART TOGETHER AND RUSHED INTO A BURNING BUILDING TO SNATCH A COMPUTER PRINTOUT OF THE FINANCIAL HOLDINGS OF DEPOSED PANAMANIAN LEADER MANUEL NORIEGA MR PANKAU HAS GAINED A COLORFUL NOTORIETY PARTICULARLY IN TEXAS NEARLY ALL MAJOR NEWSPAPERS IN THE US INCLUDING THIS ONE HAVE QUOTED HIM PHIL DONAHUE LARRY KING AND JOAN RIVERS HAVE ALL INTERVIEWED HIM THE HEADLINE OF A 1992 NEW YORK TIMES PAGEONE ARTICLE BILLED HIM AS A NEW BREED OF SAM SPADE THAT STORY WAS FOLLOWED BY A BOOK DEAL WITH MACMILLAN INC FOR HIS AUTOBIOGRAPHY BUT WHETHER MR PANKAU'S LARGERTHANLIFE IMAGE IS JUSTIFIED IS AN OPEN QUESTION WRITER ROBERT PACK WHO SIGNED TO WORK ON THE AUTOBIOGRAPHY SPENT SIX MONTHS RESEARCHING HIS SUBJECT'S CLAIMS AND HE BEGAN TO WORRY THAT THE DETECTIVE WHO BUILT HIS CAREER ON SNIFFING OUT UNTRUTHS MIGHT BE TELLING A FEW HIMSELF I DO NOT BELIEVE IT IS POSSIBLE TO PRODUCE A TRUE LIBELFREE ORIGINAL BOOK ABOUT YOUR LIFE AND CAREER MR PACK WROTE MR PANKAU LAST APRIL IN AN ACCOMPANYING 15PAGE STATEMENT WHICH BECAME PUBLIC LAST WEEK AS PART OF A LAWSUIT MR PACK ARGUES THAT THE SLEUTH COULDN'T DOCUMENT CLAIMS HE MADE BEFORE SIGNING THE BOOK DEAL MR PACK SAYS MR PANKAU PROMISED BUT NEVER DELIVERED NEW INFORMATION ON THE IRANCONTRA SCANDAL AND DETAILS OF BIG FIGURES IN WHITECOLLAR CRIME ACCORDING TO MR PACK'S STATEMENT MR PANKAU'S PROMISES MAY CONSTITUTE FRAUD AGAINST HIM AND MACMILLAN THE PUBLISHER DECLINES TO COMMENT THE STATEMENT BECAME PUBLIC WHEN MR PANKAU FILED A DEFAMATION SUIT AGAINST MR PACK IN STATE DISTRICT COURT IN HOUSTON LAST MONTH THE SUIT SEEKING MORE THAN 5 MILLION IN DAMAGES CHARGES THAT MR PACK IS SPREADING VICIOUS AND UNSUBSTANTIATED STATEMENTS ABOUT ED PANKAU'S VERACITY MORAL CHARACTER AND HONOR MR PANKAU'S ATTORNEYS IN ATTACHING MR PACK'S STATEMENT AS EVIDENCE FILED A MOTION TO SEAL IT FROM PUBLIC VIEW DISTRICT COURT JUDGE MICHAEL SCHNEIDER INITIALLY LEFT IT OPEN PENDING A HEARING ON THE MOTION AT MR PACK'S REQUEST THE CASE WAS MOVED TO US DISTRICT COURT IN HOUSTON WHERE A MOTION BY MR PANKAU'S LAWYERS TO SEAL PARTS OF THE FILES IS PENDING MR PACK WHO COLLABORATED WITH FORMER WHITE HOUSE SPOKESMAN LARRY SPEAKES ON A BESTSELLER ABOUT THE REAGAN ADMINISTRATION DECLINES TO COMMENT HE IS UNDER AN ORDER PROHIBITING HIM FROM COMMENTING ACCORDING TO THE LAWSUIT AS PART OF A CASE HE HAS PENDING AGAINST MR PANKAU WITH THE AMERICAN ARBITRATION ASSOCIATION IN AN INTERVIEW MR PANKAU WHO HEADS HIS OWN HOUSTON FIRM INTERTECT INC DISPUTES MR PACK'S VERSION HE SAYS SEVERAL OF THE APPARENT CONTRADICTIONS ABOUT HIM RESULTED FROM MISQUOTES BY OTHERS SOME FORMER CLIENTS DEFEND MR PANKAU'S COMPETENCE MONTY E PENDLETON A HOUSTON CONSULTANT SAYS MR PANKAU TRACKED DOWN REALESTATE HOLDINGS OF ONE OF HIS DEBTORS HE'S GOT A BIG EGO AND LIKES TO BRAG MR PENDLETON SAYS BUT HE ALSO DELIVERS MR PANKAU WORKED FOR CLIENTS RANGING FROM BANKS TO THE FEDERAL GOVERNMENT SINCE 1989 HE HAS DONE 32 JOBS FOR THE RESOLUTION TRUST CORP MOSTLY SEARCHES OF PUBLIC RECORDS AND COLLECTED ABOUT 150000 IN FEES SAYS AN AGENCY SPOKESMAN ADDING HE WAS AN AVERAGE PERFORMER IN MR PANKAU'S 1992 BOOK CHECK IT OUT A HOWTO ON FINDING OUT ABOUT THE PEOPLE IN YOUR LIFE HE ADVISES WOULDBE PRIVATE EYES NOT TO BE SHY ABOUT TELLING A FIB THE TRUE SECRET OF THE SUPERSLEUTHS IS OFTEN A GLIBTONGUED SMOOTHTALKING LITTLE PRETEXT A WHITE LIE ONE OF MR PACK'S BIGGEST COMPLAINTS ACCORDING TO HIS STATEMENT IS THAT IN HIS INTERVIEWS WITH MR PANKAU SOME OF THEM TAPED THE DETECTIVE CONTRADICTED HIMSELF REPEATEDLY BUSINESS WEEK SAID THAT MR PANKAU WAS A GREEN BERET IN VIETNAM ONE ARTICLE IN A 1992 ISSUE OF FLORIDA STATE MAGAZINE SAID HE WAS WOUNDED IN COMBAT BUT MR PANKAU TOLD HIS BIOGRAPHER HE WAS NEVER IN VIETNAM ACCORDING TO MR PACK'S STATEMENT WHEN PRESSED BY MR PACK TO EXPLAIN HE ALLEGEDLY GAVE SEVERAL STORIES ONCE SAYING HE HAD FLOWN OVER VIETNAM AND LANDED BRIEFLY NEVER LEAVING THE PLANE AND ANOTHER CLAIMING HE HAD BEEN IN VIETNAM FOR A COUPLE OF DAYS BUT WASN'T ALLOWED TO TALK ABOUT IT ARMY FILES FROM THE GOVERNMENT'S NATIONAL PERSONNEL RECORDS CENTER IN ST LOUIS SHOW MR PANKAU SPENT TWO WEEKS IN OKINAWA BUT OTHERWISE SERVED ENTIRELY IN THE US HIS FILES DON'T INDICATE THAT HE WAS A GREEN BERET OR THAT HE WAS WOUNDED DATA NORMALLY INCLUDED IN MILITARY RECORDS SAYS A SPOKESWOMAN FOR THE CENTER MR PANKAU SAYS IN AN INTERVIEW THAT HE WAS A GREEN BERET FOR SEVERAL WEEKS IN OKINAWA TEACHING NATIVE FORCES HOW TO PACK AND MAINTAIN PARACHUTES HE ALSO SAYS HE WAS INJURED ONCE BUT CAN'T TALK ABOUT IT ADDING THAT MR PACK'S VERSION OF THEIR CONVERSATIONS IS INACCURATE MR PANKAU HAS BUILT HIS IMAGE PARTLY ON HIS EXPERIENCE WITH THE INTERNAL REVENUE SERVICE CHECK IT OUT RECOUNTS HOW MR PANKAU'S BOSS AT THE IRS TRACKED NOTORIOUS JEWELRY THIEVES BY SCREENING SUBSCRIPTION LISTS OF JEWELRY MAGAZINES FOR PEOPLE WITH CRIMINAL RECORDS MURPH THE SURF' AND HIS GANG NEVER DID FIGURE OUT THAT WE NAILED THEM BY FINDING THEIR ADDRESS ON A JEWELRY MAGAZINE SUBSCRIPTION LIST MR PANKAU WRITES BUT WHEN MR PACK TOLD MR PANKAU THAT MURPH THE SURF WAS JAILED BEFORE MR PANKAU BEGAN WORKING FOR THE IRS THE PRIVATE EYE SAID HE HAD FORGOTTEN THAT AND CHANGED HIS STORY TO SAY THE UNIT HAD INVESTIGATED OTHER MEMBERS OF THE GANG ACCORDING TO MR PACK'S STATEMENT MR MCRAE SAYS MR PANKAU WAS A TRAINEE NOT A FULLFLEDGED AGENT AND STAYED LESS THAN A YEAR MR MCRAE SAYS HE REMEMBERS MR PANKAU ONLY BECAUSE HE FAILED THE BACKGROUND CHECK THAT'S VERY RARE MR MCRAE SAYS ADDING THAT HE DOESN'T REMEMBER WHY MR PANKAU THEN IN HIS MID20S FAILED THE IRS'S FLORIDA OFFICES SAY THEIR RECORDS DON'T GO BACK FAR ENOUGH TO HAVE THAT INFORMATION MR PANKAU NOW SAYS HE WASN'T THERE WHEN THE IRS INVESTIGATED MURPH THE SURF AS FOR THE BACKGROUND CHECK MR PANKAU SAYS I DO NOT FEEL I FAILED THE BACKGROUND CHECK I NEVER PERSONALLY GOT THE RESULTS AND HE ADDS THAT HE RESIGNED HIS POSITION ONE OF MR PANKAU'S MOST RENOWNED FEATS WAS THE TIME HE SUPPOSEDLY SNATCHED A LIST OF GEN NORIEGA'S HOLDINGS FROM A BURNING BUILDING NEW YORK TIMES REPORTER STEVE LOHR WROTE IN THE PAPER'S FEB 20 1992 EDITION MR PANKAU WAS IN PANAMA ON AN INSURANCE INVESTIGATION DURING THE AMERICAN INVASION IN THE CONFUSION HE SLIPPED INTO A BUILDING AND MADE OFF WITH A COMPUTER PRINTOUT LISTING MORE THAN 800 MILLION IN ASSETS HELD IN 18 COUNTRIES ASSETS HE IS CONVINCED ARE GENERAL NORIEGA'S A SIMILAR VERSION APPEARS IN CHECK IT OUT MR PANKAU BEGINS I JUST HAPPENED TO BE IN PANAMA DURING THE 1989 INVASION SITTING IN A BAR BUT MR PANKAU NOW SAYS HE WASN'T IN PANAMA WHEN FIGHTING BROKE OUT IN AN INTERVIEW HE SAYS THAT THE TIMES STORY WAS A MISQUOTE AND THAT HIS EMPLOYEES NOT HE WERE IN PANAMA MR LOHR THE TIMES REPORTER WAS TRAVELING AND COULDN'T BE REACHED THE US ATTORNEY'S MIAMI OFFICE WHICH IN 1992 SUCCESSFULLY PROSECUTED MR NORIEGA ON DRUG TRAFFICKING CHARGES CONSIDERED USING THE DOCUMENT THAT MR PANKAU CLAIMS LISTS GEN NORIEGA'S HOLDINGS BUT DIDN'T BECAUSE IT WAS NOT POSSIBLE TO VERIFY ITS AUTHENTICITY SAYS ASSISTANT US ATTORNEY MICHAEL P SULLIVAN MR PANKAU SAYS HE HAS BEEN RETAINED BY THE PANAMANIAN GOVERNMENT TO TRACK DOWN MR NORIEGA'S ASSETS A CONTENTION DISPUTED BY EUSEBIO MARCHOSKY WHO HEADS PANAMA'S EFFORT TO RECOVER THE ASSETS WORLDWIDE ONE OF MR PANKAU'S MOST NOTED ESCAPADES IS THE STORY HE TOLD ABOUT VIDEOTAPING MS RICE AND SEN HART TOGETHER WHICH HE RECOUNTED IN A 1992 ARTICLE IN THE WASHINGTON POST THE VERSION HE GAVE MR PACK WAS EVEN MORE DETAILED CLAIMING ACCORDING TO MR PACK'S STATEMENT IT WAS HE WHO CAUGHT GARY HART WITH DONNA RICE AND THAT HE TIPPED OFF THE MIAMI HERALD WHICH RESULTED IN 1987 NEWS STORIES THAT KNOCKED HART THE LEADING CONTENDER FOR THE 1988 DEMOCRATIC PRESIDENTIAL NOMINATION OUT OF THE RACE JAMES SAVAGE ASSOCIATE EDITOR FOR INVESTIGATIVE REPORTING AT THE MIAMI HERALD SAYS MR PANKAU NEVER INFORMED THE HERALD OR GAVE IT ANY PICTURES BEFORE ITS STORY ON SEN HART'S RELATIONSHIP WITH MS RICE I WAS THE EDITOR ON THE STORY I WOULD HAVE KNOWN MR SAVAGE SAYS IN AN INTERVIEW MR PANKAU SAYS HIS INVESTIGATORS GAVE INFORMATION TO THE MIAMI HERALD WHEN TOLD OF MR SAVAGE'S DENIAL MR PANKAU SAYS THE PHOTOS WENT TO A CLIENT WHOSE IDENTITY HE DOESN'T KNOW AND HE SUSPECTS THE CLIENT TIPPED OFF THE HERALD 9401140051 940114 BUSINESS BRIEF NISSAN MOTOR CO SALES AFFILIATE SAYS IT PLANS TO SELL FORD MOTOR VEHICLES A NISSAN MOTOR CO SALES AFFILIATE SAID IN TOKYO THAT IT INTENDS TO BEGIN MARKETING FORD MOTOR CO VEHICLES THIS SPRING IN THE LATEST EFFORT BY JAPAN'S AUTO INDUSTRY TO GIVE AMERICA'S BIG THREE CAR MAKERS A FOOTHOLD IN THE JAPANESE MARKET WORD OF THE AGREEMENT COMES AS US TRADE NEGOTIATORS ARE IN TOKYO TO SEEK A BIGGER SLICE OF THE JAPANESE MARKET FOR US CARS AND AUTO PARTS DETROIT'S LACK OF ACCESS TO JAPANESE DEALERSHIPS HAS BEEN ONE OF THE BIG THREE'S MAIN COMPLAINTS ABOUT JAPAN'S AUTO INDUSTRY TOKYO NISSAN AUTO SALES CO WILL SELL THE FORD VEHICLES AT DEALERSHIPS IN THE TOKYO AREA SAID SPOKESMAN ATSUSHI HORIGOME MR HIROGOME SAID THE MODELS AND SALES VOLUME HAVEN'T BEEN DECIDED A FORD SPOKESMAN IN TOKYO SAID FORD IS STILL STUDYING THE PROPOSAL FORD ALREADY SHARES A DEALERSHIP NETWORK WITH ITS JAPANESE AFFILIATE MAZDA MOTOR CO AND STRENGTHENING THOSE EXISTING DEALERSHIPS IS A PRIORITY HE SAID FORD AND NISSAN ALREADY JOINTLY PRODUCE MINIVANS THE DEAL FOLLOWS OTHER RECENT JAPANUS SALES ARRANGEMENTS INCLUDING A PLEDGE BY TOYOTA MOTOR CORP TO SELL 20000 GENERAL MOTORS CORP COMPACT CARS A YEAR IN JAPAN 9401140050 940114 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTONITES RUSH TO DIVERT PUBLIC ATTENTION FROM THE WHITEWATER FLAP HAVING CAVED IN TO CALLS TO NAME A SPECIAL COUNSEL WHITE HOUSE OFFICIALS PLAN TO QUIT TALKING ABOUT THE ISSUE THEY WILL FOCUS ON CLINTON'S EUROPEAN TRIP AND ESPECIALLY HIS STATE OF THE UNION ADDRESS JAN 25 AIDES PLAN TO GIVE CLINTON HIS THIRD DRAFT OF THE SPEECH WHEN HE RETURNS FROM MOSCOW HEALTH CARE AND CRIME WILL BE STRESSED REPUBLICANS WILL FOCUS ON CLINTON'S CREDIBILITY AS THE CENTRAL THREAD THROUGH HIS TROUBLES WITH TAX PROPOSALS WHITEWATER AND PERSONAL ALLEGATIONS CREDIBILITY IS THE LINCHPIN OF ANY OFFICE OF AUTHORITY SAYS GOP CHAIRMAN HALEY BARBOUR THOUGH SIMILAR THEMES COULDN'T SAVE BUSH IN HIS RACE AGAINST CLINTON ONE CLINTON ADVISER SAYS THAT WITH A SPECIAL COUNSEL DOLE'S CALL FOR A SPECIAL CONGRESSIONAL COMMITTEE TO INVESTIGATE WHITEWATER IS DEAD ON ARRIVAL HEALTHCARE REFORM WILL GET A RENEWED PUSH FROM THE FIRST LADY HILLARY RODHAM CLINTON PLANS TO GO TO PENNSYLVANIA CALIFORNIA MAINE AND NORTH CAROLINA SOON AFTER RUSSIA DEMOCRATIC LAWMAKERS ARE FRIENDLY HOSTS BUT REPUBLICANS ALSO ARE TARGETED MAINE SEN COHEN IS IMPORTANT ON MEDICARE ISSUES REP GREENWOOD IN SUBURBAN PHILADELPHIA AND REP MCMILLAN IN CHARLOTTE ARE SWING GOP VOTES ON THE HOUSE COMMERCE COMMITTEE WHITE HOUSE ADVISERS TRY TO FIND WAYS TO CONVINCE LAWMAKERS THAT THE PUBLIC AS SHOWN IN POLLS PREFERS CLINTON'S PLAN TO ALTERNATIVE BILLS BUT SENATE FINANCE CHAIRMAN MOYNIHAN'S LENGTHY HEARING SCHEDULE SUGGESTS NO ACTION ON HEALTHCARE LEGISLATION BEFORE LATE SPRING SOME REPUBLICANS INCLUDING WOULDBE PRESIDENTIAL CONTENDER CHENEY PRESS THE CONSERVATIVE THEME THAT THERE IS NO HEALTH CRISIS TRADE TALKS BETWEEN THE US AND JAPAN HEAD FOR MORE TROUBLE BOTH SIDES GIVE UP HOPE OF REACHING A PRELIMINARY AGREEMENT AT A TWODAY CONFERENCE IN WASHINGTON SLATED TO BEGIN JAN 24 INSTEAD US NEGOTIATORS PLAN AN EMERGENCY TRIP TO TOKYO BEFORE PRIME MINISTER HOSOKAWA VISITS CLINTON FEB 11 THE MAIN HANGUP US INSISTENCE THAT JAPAN AGREE TO TARGETS TO INCREASE PURCHASES OF US GOODS JAPANESE NEGOTIATORS SAY THEY WILL NEVER DO THAT US TRADE OFFICIAL CHARLENE BARSHEFSKY SAYS THE US IF PUSHED WILL SET TARGETS ITSELF US NEGOTIATORS COMPLAIN THAT JAPANESE BUREAUCRATS ARE BLOCKING A DEAL HOPING THAT POLITICAL LEADERS WILL OVERRULE THEM AND MAKE CONCESSIONS CONCERN GROWS THAT THE DOLLAR WHICH HAS SURGED PAST THE 110YEN MARK IN GLOBAL TRADING WILL EXACERBATE THE USJAPAN TRADE DEFICIT SPECULATION BEGINS ON THE SPECIAL COUNSEL TO PROBE WHITEWATER SOME SUGGEST A GOP LAWYER WHO MIGHT BE SEEN AS TRULY INDEPENDENT SUCH AS FORMER NEW HAMPSHIRE SEN RUDMAN OR IRANCONTRA PROSECUTOR DAN WEBB ALSO MENTIONED FORMER JUSTICE BYRON WHITE CHINA BRAWL THE US CLAIMING THAT CHINA HAS LICENSED 26 FACTORIES TO PRODUCE PIRATED COMPACT DISKS THREATENS TRADE SANCTIONS IF THE CHINESE DON'T IMPROVE PROTECTION OF COPYRIGHTS THE FACTORIES ARE SAID TO EXPORT 54 MILLION DISKS A YEAR NOW OVERHEAR THIS THE FED QUIETLY AGREED TO LET THE HOUSE BANKING COMMITTEE STAFF LISTEN YESTERDAY TO A TAPE OF AN OCT 15 CONFERENCE CALL IN WHICH FED OFFICIALS DISCUSSED STRATEGY FOR A HEARING BEFORE THE PANEL THE GOAL TO DEFUSE CHAIRMAN GONZALEZ'S CHARGES THAT HE WAS MISLED ABOUT THE EXISTENCE OF FED TRANSCRIPTS CIVIL RIGHTS LEADER BEN CHAVIS OF THE NAACP WILL ANNOUNCE A COALITION WITH BUSINESSES TO PUSH HIS PLAN FOR REDOING THE SUPERFUND TOXICWASTE CLEANUP LAW THE PLAN WOULD REDUCE BUSINESS LIABILITY MORE THAN CLINTON'S EXPECTED PROPOSAL AND WOULD HELP FUND ECONOMIC DEVELOPMENT IN LOWINCOME AREAS NEAR WASTE SITES HOUSE DEPARTURES PROMISE TO MAKE THIS YEAR'S RACES UNUSUALLY VOLATILE HOUSE MEMBERS WHO WILL RETIRE OR RUN FOR A DIFFERENT OFFICE NOW NUMBER 30 MORE DEPARTURES ARE SURE TO COME BUT NO BIG SHIFT IS EXPECTED BY PARTY REPUBLICANS NOW ARE EXPECTED TO PICK UP 15 TO 20 SEATS WELL BELOW FORECASTS MADE LAST YEAR POTENTIAL GOP CANDIDATES INCLUDE 21 PHYSICIANS WHO COULD BOLSTER ATTACKS ON CLINTON'S HEALTH PLAN FOR THEIR PART DEMOCRATS SEE A POTENTIAL STAR IN OHIO BUSINESSWOMAN CYNTHIA RUCCIA WHO WILL FACE GOP BUDGET CRUNCHER REP KASICH DEMOCRATS ALSO ARE HIGH ON GREENCASTLE IND MAYOR MIKE HARMLESS WHO IS RUNNING AGAINST LONGTIME GOP REP MYERS ONE BIG UNCERTAINTY WHETHER AN INCREASINGLY UNPOPULAR ROSS PEROT WILL FIELD OR BACK INDEPENDENT CANDIDATES IN HOUSE RACES KENNEDYS MAY RUN FOR HOUSE SEATS IN TWO MORE STATES SEN KENNEDY'S SON PATRICK IN RHODE ISLAND AND ROBERT KENNEDY'S DAUGHTER KATHLEEN TOWNSEND IN MARYLAND MINOR MEMOS IN MOSCOW A RUSSIAN SHOUTING EDDIE BAUER CHASES DOWN WHITE HOUSE STENOGRAPHER SUSAN LEANDER AND TRADES A NEW FUR HAT FOR HER 6 NECKWARMER MADE BY EDDIE BAUER A HOT BRAND NAME THERE INFORMATIONHIGHWAY POTHOLE NEEDING TO DISCUSS LASTMINUTE CHANGES TO GORE'S TELECOMMUNICATIONS SPEECH AIDE GREG SIMON PICKED UP A SPECIAL WHITE HOUSE PHONE AT THE KENNEDY CENTER MONDAY NIGHT IT DIDN'T WORK AN AFLCIO TRAINING MANUAL COACHES INSTRUCTORS TO SAY IN YOUR OWN WORDS THAT A US HEALTHCARE CRISIS IS SOMETHING ON WHICH WE ALL AGREE EXCEPT PERHAPS THE INSURANCE INDUSTRY 9401140049 940114 BUSINESS BRIEF SOFAMOR/DANEK GROUP INC SUIT CHARGES FIRM ACROMED USED MEDICAL DEVICE ILLEGALLY FIVE PATIENTS AND THEIR SPOUSES FILED A LAWSUIT AGAINST SOFAMOR/DANEK GROUP INC AND CLOSELY HELD ACROMED CORP ALLEGING THE COMPANIES' SURGICAL SCREWS WERE IMPLANTED ILLEGALLY IN PATIENTS' SPINES THE SUIT FILED IN US DISTRICT COURT IN PHILADELPHIA CHARGES THE SCREWS WEREN'T APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR USE IN CERTAIN SPINAL SURGERIES DESPITE WARNINGS BY THE FDA ACCORDING TO THE PLAINTIFFS SOFAMOR/DANEK AND ACROMED CONTINUED TO PROMOTE THE DEVICES TO DOCTORS AND SURGEONS THE PRESIDENT AND CHIEF EXECUTIVE OF MEMPHIS TENNBASED SOFAMOR/DANEK RON PICKARD SAID THE SUIT IS WITHOUT MERIT AND THE COMPANY WOULD MOVE QUICKLY TO HAVE IT DISMISSED ACROMED BASED IN CLEVELAND DECLINED TO COMMENT THE SUIT ALSO ALLEGES THAT SOME SCREWS WERE DEFECTIVE LEAVING PATIENTS CRIPPLED AND IN SEVERE PAIN ACCORDING TO THE COMPLAINT FILED LATE WEDNESDAY THE PEDICLE SCREWS NAMED FOR A PART OF THE SPINE WERE USED IMPROPERLY IN MORE THAN 300000 PATIENTS THE CLAIM WHICH SEEKS CLASSACTION STATUS DOESN'T ASK FOR SPECIFIC DAMAGES 9401140048 940114 BUSINESS BRIEF AMR CORP FIRM SEEKS TO BUILD RUN TURKISH PASSENGER TERMINAL AMR CORP CONTINUING ITS STRATEGY TO EXPAND INTO NONAIRLINE BUSINESSES SAID IT IS BIDDING TO DESIGN BUILD FINANCE AND OPERATE A PASSENGER TERMINAL AT ATATURK INTERNATIONAL AIRPORT IN ISTANBUL TURKEY AMR WHOSE AIRLINE UNIT IS AMERICAN AIRLINES SAID IN FORT WORTH TEXAS THAT ITS PARTNERS IN THE PROPOSED PROJECT INCLUDE TWO MAJOR TURKISH CONSTRUCTION COMPANIES THE AMR UNIT INVOLVED IN THE TURKISH VENTURE IS AMR TRAINING & CONSULTING GROUP WHICH PROVIDES AIRPORT DEVELOPMENT AND OTHER TRANSPORTATION SERVICES AMR TRAINING RECENTLY AGREED TO PROVIDE TURKISH AIRLINES WITH ENGLISH INSTRUCTION ANOTHER AMR UNIT AMR SERVICES CORP PROVIDES TURKISH AIRLINES WITH GROUNDHANDLING SERVICES AT NEWARK INTERNATIONAL AIRPORT IN NEW JERSEY 9401140046 940114 BUSINESS BRIEF CIT GROUP HOLDINGS INC EARNINGS IN FOURTH QUARTER ROSE 57 ON ASSET GROWTH CIT GROUP HOLDINGS INC SAID FOURTHQUARTER NET INCOME ROSE 57 ON GROWTH IN ASSETS THE ASSETBASED LENDER SAID NET IN THE QUARTER ROSE TO 447 MILLION FROM 423 MILLION A YEAR EARLIER CIT SAID THE QUARTER INCLUDED A CHARGE OF 28 MILLION RELATED TO STARTUP COSTS OF A SECOND MORTGAGE CONSUMER LENDING BUSINESS WITHOUT THOSE COSTS EARNINGS WOULD HAVE RISEN 95 AN OFFICIAL SAID FOR THE YEAR NET ROSE 12 TO 1823 MILLION FROM 1623 MILLION THE COMPANY WHICH IS 60OWNED BY DAIICHI KANGYO BANK LTD OF JAPAN AND 40OWNED BY CHEMICAL BANKING CORP SAID ASSET GROWTH FOR THE YEAR WAS STRONG 9401140045 940114 BUSINESS BRIEF CONTINENTAL AIRLINES BUSINESSFIRST PROMOTION OFFERS 2FOR1 DISCOUNT CONTINENTAL AIRLINES HOUSTON SAID IT WILL OFFER A FREE COMPANION TICKET TO CUSTOMERS PURCHASING ROUNDTRIP SEATS IN ITS BUSINESSFIRST SECTION ITS HIGHESTPRICED TRANSATLANTIC SEATS AS WELL AS CERTAIN ECONOMY TICKETS WHEN FLYING TO PARIS FROM SIX SOUTHERN AND WESTERN STATES THE AIRLINE SAID THE TICKETS MUST BE BOUGHT BY MARCH 15 TRAVEL WITH THE FREE COMPANION TICKET CAN BEGIN IMMEDIATELY AND MUST BE COMPLETED BY APRIL 15 A SPOKESMAN SAID THE DISCOUNT MATCHES A SIMILAR RECENT OFFERING BY AIR FRANCE 9401140044 940114 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED JAN 7 ACCOUNTED FOR 121 OR AN AVERAGE 409 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 261 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 215 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 28 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 522 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 323 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 155 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES ALL FIVE OF THE MOSTACTIVE FIRMSLEHMAN BROTHERS MORGAN STANLEY CS FIRST BOSTON BEAR STEARNS AND KIDDER PEABODYEXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9401140043 940114 TECHNOLOGY & HEALTH BRIEF BELL ATLANTIC CORP COMPANY SELECTS VENDORS TO DEVELOP DEVICES FOR TVS BELL ATLANTIC CORP SAID IT SELECTED THREE VENDORS TO DEVELOP DEVICES THAT CONNECT TO A TV SET AND ALLOW A VIEWER TO ORDER VIDEO PROGRAMMING OVER A TELEPHONE LINE THE DEVICES INITIALLY PART OF A MARKET TRIAL WILL BE USED IN THE COMMERCIAL ROLLOUT OF THE BABY BELL'S STARGAZER PROGRAMMING SERVICE TO HOUSEHOLDS IN THE WASHINGTON DC AREA PENDING CERTAIN REGULATORY APPROVALS THE COMPANY HOPES TO PROVIDE THE SERVICES TO ABOUT 4000 TO 5000 HOUSEHOLDS BY THE END OF THE YEAR TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR THE REGIONAL PHONE COMPANY SAID THE CONTRACTS WERE POTENTIALLY WORTH HUNDREDS OF MILLIONS DOLLARS THE VENDORS FOR THE DEVICES ALSO KNOWN AS DIGITAL ENTERTAINMENT TERMINALS INCLUDE INTERNATIONAL BUSINESS MACHINES CORP A PARTNERSHIP OF PHILIPS DIGITAL VIDEOCOMMUNICATIONS AND COMPRESSION LABS INC BASED IN SAN JOSE CALIF AND A CONSORTIUM OF DIVICOM INC MILPITAS CALIF ADAPTIVE MICROWARE INC FORT WAYNE IND AND EURODEC IN PARIS PHILIPS DIGITAL IS A UNIT OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS EURODEC IS A UNIT OF PARISBASED SAGEM GROUP 9401140042 940114 BUSINESS BRIEF GENERAL MOTORS CORP EDS TO BUY MAJORITY STAKE IN ITALIAN COMPUTER CONCERN ELECTRONIC DATA SYSTEMS CORP SAID IT AGREED TO ACQUIRE A MAJORITY INTEREST IN ITALY'S CLOSELY HELD GRUPPO S&M A COMPUTER SERVICES AND SOFTWARE CONCERN IN ROME TERMS WERE NOT DISCLOSED BUT DALLASBASED EDS A UNIT OF GENERAL MOTORS CORP DETROIT SAID THE AGREEMENT INCLUDES AN OPTION FOR IT TO TAKE FULL OWNERSHIP OF GRUPPO IN THE FUTURE GRUPPO WHICH PROVIDES SOFTWARE DESIGN SERVICES PRIMARILY FOR FINANCIAL AND MANUFACTURING CONCERNS REPORTED 1992 REVENUE OF 565 MILLION EDS SAID THE AGREEMENT GIVES IT ENTRY INTO THE ITALIAN INFORMATION TECHNOLOGY MARKET THE FOURTH LARGEST IN EUROPE EDS SAID IT PLANS TO TARGET THE RELATIVELY UNDEVELOPED MARKET IN ITALY FOR OUTSOURCING INFORMATIONTECHNOLOGY SERVICES 9401140041 940114 BUSINESS BRIEF NATIONAL WESTMINSTER BANK PLC FOURTHQUARTER NET INCOME NEARLY DOUBLED AT US UNIT NATIONAL WESTMINSTER BANCORP INC SAID FOURTHQUARTER NET INCOME NEARLY DOUBLED TO 961 MILLION FROM 50 MILLION A YEAR EARLIER THE JERSEY CITY NJBASED US UNIT OF NATIONAL WESTMINSTER BANK PLC OF THE UNITED KINGDOM SAID THE STRONG IMPROVEMENTS REFLECT SMALLER PROVISION FOR LOAN LOSSES AND GAINS IN INTEREST INCOME NET INTEREST INCOME FOR THE FOURTH QUARTER WAS 2075 MILLION COMPARED WITH 1972 MILLION A YEAR EARLIER PROVISIONS FOR LOAN LOSSES WERE 19 MILLION DOWN FROM 305 MILLION A YEAR AGO FOR THE YEAR ENDED DEC 31 NET WAS 2981 MILLION UP 92 FROM THE PREVIOUS PERIOD'S 1552 MILLION NONACCRUAL LOANS FELL TO 32 OF TOTAL LOANS AS OF DEC 31 DOWN FROM 71 A YEAR EARLIER TOTAL ASSETS WERE 2366 BILLION UP FROM 2273 BILLION 9401140040 940114 BUSINESS BRIEF FEDERAL EXPRESS CORP EXPRESS SHIPMENTS ROSE 8 IN DECEMBER FROM '92 LEVEL FEDERAL EXPRESS CORP MEMPHIS TENN SAID AVERAGE DAILY VOLUME OF EXPRESS PACKAGES AND DOCUMENTS ROSE 8 IN DECEMBER FROM A YEAR EARLIER WHILE THE COMPANY AND SOME ANALYSTS SAID THE GROWTH WAS IN LINE WITH EXPECTATIONS THE INCREASE WAS LESS THAN HALF THAT REPORTED FOR 1992'S DECEMBEROVERDECEMBER COMPARISON SOME ANALYSTS HAD BEEN PROJECTING GROWTH OF MORE THAN 20 FOR DECEMBER 1993 BECAUSE OF THE COMPANY'S NEW EXCLUSIVE CONTRACT WITH CATALOG GIANT LL BEAN THIS IS SOMEWHAT DISAPPOINTING SAID PAUL R SCHLESINGER AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL EXPRESS SAID IT IS MISLEADING TO COMPARE THE DECEMBER 19921993 GROWTH RATE WITH THE DECEMBER 19911992 RATE BECAUSE OF THE WAY THE HOLIDAYS FELL THIS PAST DECEMBER AND BECAUSE PRICES WERE FIRMER THIS PAST DECEMBER SOME ANALYSTS ADDED THAT THE 1992 CHRISTMAS WAS STRONGER THAN USUAL AND THAT 1991 WAS UNUSUALLY WEAK 9401140039 940114 BUSINESS BRIEF AZTEC ENERGY CORP LOSS FOR FISCAL 1993 IS LESS THAN FIRM HAD ESTIMATED AZTEC ENERGY CORP DALLAS REPORTED A LOSS FOR THE FISCAL YEAR ENDED SEPT 30 1993 OF 1017000 OR 49 CENTS A SHARE THE LOSS WAS NEARLY 200000 LESS THAN THE COMPANY SAID IT EXPECTED EARLIER THIS MONTH THE COMPANY SAID THE NARROWER LOSS IS ATTRIBUTABLE TO CERTAIN ACCOUNTING CHANGES MADE RECENTLY AND TO THE HIRING OF A NEW ACCOUNTING FIRM AZTEC A NATURALGAS EXPLORATION AND PRODUCTION COMPANY ALSO SAID THAT CERTAIN OF THE ACCOUNTING CHANGES PREVENT IT FROM RELEASING ITS FINAL FISCAL FOURTHQUARTER EARNINGS YET THE COMPANY SAID IT PLANS TO RELEASE THEM WHEN POSSIBLE REVENUE FOR THE FULLYEAR ENDED SEPT 30 WAS 777721 FOR THE FISCAL YEAR ENDED SEPT 30 1992 AZTEC POSTED A NET RESTATED NET LOSS OF 179000 OR NINE CENTS A SHARE ON REVENUE OF 3426 AZTEC WHICH WENT PUBLIC IN AUGUST 1991 RESTATED ITS 1992 EARNINGS TO REFLECT THE ACCOUNTING CHANGES 9401140038 940114 BUSINESS BRIEF DOLLAR TIME GROUP INC COMPANY ENDS PACT TO BUY A REAL NEW YORK BARGAIN DOLLAR TIME GROUP INC SAID IT ENDED ITS AGREEMENT TO ACQUIRE A REAL NEW YORK BARGAIN A PRIVATELY HELD RETAILER BASED IN NEW YORK IN A TRANSACTION ORIGINALLY VALUED AT 436 MILLION DOLLAR TIME A HOLLYWOOD FLA OPERATOR OF 55 VARIETY STORES SAID THE TWO COMPANIES DISAGREED ON THE DIRECTION OF DOLLAR TIME'S OPERATIONS MOREOVER DOLLAR TIME IN A STATEMENT SAID IT HAD BECOME CONCERNED ABOUT THE PROFITABILITY OF A REAL NEW YORK BARGAIN SINCE THE TWO SIDES AGREED TO JOIN FORCES IN NOVEMBER AS PART OF THE ORIGINAL AGREEMENT JOSEPH SASSON CHIEF EXECUTIVE OFFICER OF A REAL NEW YORK BARGAIN AND JEFFREY KLANSKY PRESIDENT OF THE RETAILER BECAME CHIEF EXECUTIVE AND PRESIDENT RESPECTIVELY OF DOLLAR TIME AS WELL AS DIRECTORS YESTERDAY THE TWO MEN RESIGNED THEIR POSITIONS AT DOLLAR TIME DOLLAR TIME SAID GARY DE LUCA 40 YEARS OLD THE COMPANY'S CHIEF OPERATING OFFICER WAS NAMED PRESIDENT 9401140037 940114 BUSINESS BRIEF FORD MOTOR CO CAR MAKER PLANS TO SELL REST OF STAKE IN EXCEL INDUSTRIES FORD MOTOR CO SAID IT PLANS TO SELL ALL OF ITS SHARES OF EXCEL INDUSTRIES INC ENDING THE AUTO MAKER'S MINORITY OWNERSHIP OF THE COMPANY EXCEL BASED IN ELKHART IND DESIGNS AND MAKES AUTOMOTIVE WINDOW SYSTEMS FORD AND FORD MOTOR CO FUND A NONPROFIT CHARITABLE ORGANIZATION OWN 2557128 SHARES OF EXCEL COMMON STOCK OR ROUGHLY 24 OF THE TOTAL SHARES OUTSTANDING BASED ON EXCEL'S CLOSING PRICE YESTERDAY OF 18375 ON THE AMERICAN STOCK EXCHANGE THE SHARES ARE VALUED AT 47 MILLION FORD INITIALLY SPENT 19 MILLION IN 1986 TO ACQUIRE A 40 STAKE IN EXCEL BUT SOLD SOME OF THOSE SHARES IN 1992 AND LAST YEAR THE LATEST SALE WON'T DILUTE FORD'S PERSHARE EARNINGS THE COMPANY SAID FORD MOTOR CO'S 40 OWNERSHIP IN EXCEL INDUSTRIES INC WAS DILUTED OVER TIME TO A 24 STAKE AS EXCEL SOLD NEW EQUITY AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT FORD SOLD EXCEL SHARES 9401140036 940114 ATTORNEY IN MASSIVE FRAUD SENTENCED TO OVER 12 YEARS SAN DIEGO LOS ANGELES ATTORNEY LYNN BOYD STITES MASTERMIND OF A MASSIVE FRAUD AND LEGALCORRUPTION SCHEME THAT BILKED INSURANCE FIRMS OF TENS OF MILLIONS OF DOLLARS WAS SENTENCED TO MORE THAN 12 YEARS IN PRISON A FEDERAL DISTRICT COURT JUDGE HERE ALSO ORDERED HIM TO FORFEIT 50 MILLION PROSECUTORS DESCRIBED MR STITES AS THE CENTRAL PLAYER IN A SECRET NETWORK OF ALMOST TWO DOZEN LAWYERS AND LAW FIRM EMPLOYEES DUBBED THE ALLIANCE WHICH DEFRAUDED INSURERS BY RESISTING SETTLEMENTS PROLONGING LITIGATION INVENTING NEW LEGAL CONTROVERSIES AND EVEN REPRESENTING BOTH SIDES OF THE SAME LAWSUIT THE RING BLED BETWEEN 50 MILLION AND 200 MILLION FROM INSURANCE COMPANY CLIENTS LAST OCTOBER MR STITES WAS CONVICTED OF RACKETEERING AND MAILFRAUD CHARGES EIGHTEEN OTHER INDIVIDUALS PREVIOUSLY WERE CONVICTED OF PARTICIPATING IN THE SCHEME 9401140035 940114 PARAMOUNT MOVES TO TIGHTEN RULES FOR TAKEOVER BIDS BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL PARAMOUNT COMMUNICATIONS INC ATTEMPTED TO TIGHTEN THE BIDDING RULES IN ITS TAKEOVER CONTEST TO PREVENT QVC NETWORK INC AND VIACOM INC FROM CHANGING THEIR BIDS AFTER FEB 1 PARAMOUNT ALSO PROPOSED RULE CHANGES AIMED AT REDUCING THE CHANCES OF LASTMINUTE GAMESMANSHIP THAT COULD CONFUSE INVESTORS OR NEEDLESSLY PROLONG THE FOURMONTH CONTEST THE ENTERTAINMENT GIANT TOOK THE STEPS AFTER BEING CRITICIZED BY SOME TRADERS AS HAVING ADOPTED A LAISSEZFAIRE ATTITUDE IN REFEREEING THE CONTEST THE CRITICISM FOLLOWED A RESTRUCTURED BID BY VIACOM A WEEK AGO THAT BOOSTED THE AMOUNT OF CASH BEING OFFERED WHILE LEAVING THE BID'S TOTAL VALUE LARGELY UNCHANGED BOTH BIDDERS ARE OFFERING CASH FOR 501 OF PARAMOUNT AND SECURITIES FOR THE REMAINING 499 PARTLY BECAUSE VIACOM ANNOUNCED ITS REVISED 93 BILLION OFFER LATE FRIDAY AMID SPECULATION OF A MUCH HIGHER BID AND BECAUSE COMPLETE TERMS OF THE VIACOM OFFER WEREN'T DISSEMINATED IMMEDIATELY QVC LOST THE CHANCE TO GAIN 51 OF PARAMOUNT STOCK AND CLOSE OUT THE CONTEST DESPITE ITS HIGHER OFFER NOW VALUED AT 10 BILLION PARAMOUNT SAID IT WAS ONLY CLARIFYING OR REFINING BIDDERS' EXISTING OBLIGATIONS RATHER THAN MAKING OUTRIGHT CHANGES IT ASKED THE BIDDERS TO FILE ANY CHANGES IN THEIR OFFERS WITH THE SECURITIES AND EXCHANGE COMMISSION BY 5 PM ON THE DAY THEIR OFFERS WOULD OTHERWISE EXPIRE AND IT SAID EACH BIDDER SHOULD BE BARRED FROM CHANGING ITS OFFER OF SECURITIES FOR A MINORITY OF PARAMOUNT SHARES PRIMARILY TO FORCE ITS OPPONENT TO EXTEND ITS OFFER IN DECLARING THAT THE BIDDERS CAN'T CHANGE THEIR OFFERS AFTER FEB 1 PARAMOUNT WAS ADDRESSING AN AMBIGUITY THAT MIGHT HAVE ALLOWED VIACOM OR QVC TO CHANGE THE SECURITIES BEING OFFERED FOR A MINORITY OF PARAMOUNT'S STOCK KNOWN AS THE BACK END UP UNTIL FEB 7 BECAUSE NEW OFFERS MUST BE KEPT OPEN FOR 10 BUSINESS DAYS AND THE CONTEST IS SUPPOSED TO END FEB 14 PARAMOUNT HAS SAID THAT THE DEADLINE FOR HIGHEST AND FINAL BIDS IS FEB 1 BUT SECURITIES LAWS ALLOW CHANGES IN THE SECURITIES BEING OFFERED FOR A MINORITY OF SHARES TO REMAIN OPEN FOR ONLY FIVE DAYS WHICH MIGHT HAVE LEFT THE DOOR OPEN FOR CHANGES IN THE FIRST WEEK OF FEBRUARY SPOKESMEN FOR QVC AND VIACOM SAID THEY WEREN'T YET AWARE OF THE PROPOSED BIDDINGRULE CHANGES AND COULDN'T COMMENT 9401140034 940114 TECHNOLOGY BRIEF SHARP CORP ELECTRONICS CONCERN PLANS TO BUILD BIG PLANT FOR LCDS SHARP CORP OF JAPAN SAID IT PLANS TO BUILD A MASSIVE 470 MILLION PLANT FOR LIQUID CRYSTAL DISPLAYS IN ORDER TO MEET AN EXPECTED INCREASE IN DEMAND THE PLANT IN TAKICHO JAPAN WILL MAKE ADVANCED LCDS FOR USE IN SUCH PRODUCTS AS AUDIO AND VIDEO EQUIPMENT PERSONAL COMPUTERS AND MULTIMEDIA EQUIPMENT THE PLANT'S FLAGSHIP PRODUCTS WILL BE 10INCH AND LARGER LCDS WITH THE WIDE VIEWING ANGLE AND HIGH RESOLUTION THAT ARE EXPECTED TO BE IN GREAT DEMAND IN THE ELECTRONICS INDUSTRY IN THE NEAR FUTURE SHARP SAID THE COMPANY SAID IT WOULD START CONSTRUCTION IN JANUARY 1995 AND BEGIN PRODUCTION IN JULY SHARP EXPECTS TO PRODUCE 440 MILLION OF LCDS IN FISCAL 1995 THE TOTAL FLOOR AREA OF THE TAKICHO PLANT WILL BE NEARLY 25 MORE THAN THAT OF SHARP'S PLANT AT TENRI ONE OF THE LARGEST LCD PLANTS IN THE WORLD SHARP A MAJOR ELECTRONICS MANUFACTURER BASED IN OSAKA JAPAN HAS MORE THAN A 40 SHARE OF THE WORLDWIDE LCD MARKET A SPOKESWOMAN SAID 9401140033 940114 BUSINESS BRIEF GENCORP INC FISCAL 1993 NET INCOME MET EXPECTATIONS ON LOWER SALES GENCORP INC FAIRLAWN OHIO SAID WHILE ITS 1993 FINANCIAL PERFORMANCE MET ITS EXPECTATIONS IT EXPECTS SALES FOR FISCAL 1994 TO BE DOWN FROM 1993 LEVELS BUT DECLINED TO GIVE SPECIFIC NUMBERS THE COMPANY HAS A MORE OPTIMISTIC OUTLOOK REGARDING PROFIT FOR THE YEAR BUT CAUTIONS THAT PROFIT IMPROVEMENT WILL DEPEND ON THE RATE OF ECONOMIC GROWTH AND THE SUCCESS OF ITS COSTREDUCTION PROGRAMS FOR THE FISCAL YEAR ENDED NOV 30 GENCORP REPORTED NET INCOME ROSE 94 TO 428 MILLION OR 135 A SHARE COMPARED WITH 221 MILLION OR 70 CENTS A SHARE A YEAR EARLIER SALES FELL SLIGHTLY TO 19 BILLION THE AEROSPACE AUTOMOTIVE AND POLYMERPRODUCTS CONCERN SAID FOR FISCAL 1994 IT EXPECTS TO SEE GROWTH IN ITS COMMERCIAL BUSINESSES NAMELY POLYMER PRODUCTS AND AUTOMOTIVE OPERATIONS BUT EXPECTS A SUBSTANTIAL DECLINE IN DEFENSE AND AEROSPACE BUSINESSES 9401140032 940114 TECHNOLOGY & HEALTH GORE MISTYPES HIS WAY THROUGH ONLINE FORUM WASHINGTON ONLY TWO DAYS AFTER DELIVERING A SPEECH ABOUT THE SOCALLED INFORMATION SUPERHIGHWAY VICE PRESIDENT AL GORE LAST NIGHT BECAME ONE OF ITS ROADSIDE ATTRACTIONS COMPUSERVE THE COMPUTER ONLINE SERVICE RUN BY H&R BLOCK INC AND US NEWS & WORLD REPORT MAGAZINE SPONSORED AN ONLINE DISCUSSION WITH THE VICE PRESIDENT WHO FIELDED ABOUT 20 QUESTIONS RANGING FROM THE SUPERHIGHWAY'S IMPACT ON INDUSTRY TO THE WAR IN BOSNIA NINE HUNDRED PEOPLE PARTICIPATED IN THE 45MINUTE FORUM THIS IS BELIEVED TO BE THE FIRST TIME A MAJOR POLITICAL FIGURE PARTICIPATED IN A LIVE ONLINE DISCUSSION WHICH ALLOWS SUBSCRIBERS TO TYPE IN A QUESTION AND RECEIVE AN IMMEDIATE TYPED RESPONSE TYPING APPARENTLY IS NOT ONE OF THE VICE PRESIDENT'S FORTES SAID JOSH HARRIS AN ONLINE SERVICES ANALYST AT JUPITER COMMUNICATIONS CO HE SAID MR GORE TYPED ABOUT SIX ACCURATE WORDS PER MINUTE MR HARRIS SAID IN FAIRNESS THAT THE BACKSPACE KEY WASN'T WORKING FOR TECHNICAL REASONS BUT ADDED HE'S NOT READY FOR THE SECRETARIAL POOL WHILE A COMPUSERVE SPOKESMAN SAID LINE NOISE INTRODUCED SOME EXTRANEOUS SCREEN CHARACTERS THE VICE PRESIDENT SEEMED TO MAKE A FEW TYPOS OF HIS OWN FOR EXAMPLE HE SPELLED HIS OWN FORMER TITLE SENATOR WITH A K VICE PRESIDENT AL GORE'S TYPING IN AN ONLINE FORUM WAS MISCHARACTERIZED IN AN ARTICLE FRIDAY BASED ON A PARTIAL TRANSCRIPT A REVIEW OF THE ENTIRE TRANSCRIPT SHOWS RELATIVELY FEW TYPOGRAPHICAL ERRORS 9401140031 940114 HEARD ON THE STREET SHARES OF LEWIS GALOOB TOYS ARE RIDING HIGH ON HOPES THAT BIKER MICE SALES WILL TAKE OFF BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL ARE THE BIKER MICE FROM MARS ABOUT TO TAKE OVER THE PLANET IF NOT PERHAPS THE STOCK PRICE OF LEWIS GALOOB TOYS WILL RETREAT FROM OUTER SPACE BIG HOPES FOR GALOOB'S LATEST TOY AND A TIEIN TV CARTOON HAVE BOOSTED THE STOCK WHILE GENERATING A SHOWER OF UPBEAT WALL STREET OPINIONS ON GALOOB AT 9 5/8 OFF 1/8 YESTERDAY THE STOCK IS MORE THAN TRIPLE THE PAST YEAR'S LOW GALOOB IS RIGHT ON TRACK ACCORDING TO CHIEF EXECUTIVE OFFICER MARK GOLDMAN HAVING MET ITS SALES TARGET OF 2 MILLION OF BIKER MICE IN 1993 AND GALOOB HAS CONSISTENTLY SAID IT WOULDN'T REALLY RAMP UP THE LINE UNTIL 1994 SO WHAT'S THE PROBLEM SOME BIG RETAILERS SAY THEY HAVE NO PLANS TO CARRY BIKER MICE AT THIS TIME PERHAPS BECAUSE THE MUCHADMIRED MICE ARE BEING OVERSHADOWED BY A RIVAL PRODUCT THE MIGHTY MORPHIN POWER RANGERS FROM BANDAI OF JAPAN FOR GALOOB A LOT IS RIDING ON BIKER MICE THE COMPANY IS EXPECTED TO REPORT NEXT MONTH AN ANNUAL LOSS OF ROUGHLY 1 A SHARE ABOUT 90 CENTS A SHARE WIDER THAN SOME ANALYSTS ESTIMATED THREE MONTHS AGO GALOOB CAN'T RIDE ALONG FOREVER ON SALES OF ITS MAJOR PRODUCTS MICRO MACHINES A LINE OF MINIATURE VEHICLES AND GAME GENIE A VIDEOGAME ACCESSORY THAT MAKES IT EASIER TO SCORE POINTS GALOOB'S SHARE PRICE MAKES SENSE ONLY IF BIKER MICE IS A HUGE HIT SAYS PAUL VALENTINE TOY ANALYST FOR STANDARD & POOR'S CORP BUT AFTER THE SUCCESS OF POWER RANGERS YOU HAVE TO BE SKEPTICAL THAT ANOTHER MALE ACTION FIGURE IS GOING TO COME IN AND CONTROL THE CATEGORY NEW ENGLANDBASED RETAILER BRADLEES INC WITH 126 STORES HAS THIS TO SAY ABOUT BIKER MICE BASED ON SALES TRENDS THIS CHRISTMAS BRADLEES HAS MADE A DECISION NOT TO CARRY IT IN 1994 SOME RETAILERS SAY BIKER MICE WERE SLOW GETTING TO MARKET THEY SAY THEY DIDN'T GET THE TOYS UNTIL THE SECOND WEEK OF DECEMBER AT REDUCED ALLOTMENTS FOR INSTANCE A GROUP OF 57 TOYS R US STORES IN SOUTHERN CALIFORNIA ORDERED AND WERE PROMISED 16000 UNITS BY CHRISTMAS ACCORDING TO PEOPLE FAMILIAR WITH THE ORDER BUT THE STORES GOT ONLY 2300 PIECES IN NEW ENGLAND STEPHEN SANDBERG A TOY BUYER FOR SMALLER STORES SAYS HE WAS TO HAVE RECEIVED 4800 PIECES BUT GOT LESS THAN ONETENTH OF THAT TWO DAYS AFTER CHRISTMAS SOME RETAILERS SUSPECTED PRODUCTION PROBLEMS OR EVEN THAT GALOOB MIGHT HAVE BEEN HOARDING THE MUSCULARLOOKING MICE MR GOLDMAN DENIES BOTH NOTIONS SAYING WE DID NOT WANT TO TAKE BIKER MICE AND PUT IT INTO THE CHRISTMAS CHAOS LAST WEEK GALOOB TOOK THE UNUSUAL AND COSTLY STEP OF MAKING BIKER MICE DELIVERIES TO EACH OF MELVILLE'S 1200 KAYBEE TOY & HOBBY STORES DID THE MOVE SUGGEST THAT NOT EVERY RETAILER WAS CLAMORING FOR THE LINE MR GOLDMAN SAYS THE GOAL WAS TO ENSURE KAYBEE HAD SUPPLIES WHEN A BIKER MICE TV AD CAMPAIGN STARTED THIS WEEK AT KMART WE'RE TAKING A LOOK AT THE LINE AND SEEING WHAT'S HAPPENING WITH BIKER MICE MERCHANDISE THAT'S AS MUCH AS I CAN SAY RIGHT NOW A SPOKESWOMAN SAYS KMART DOESN'T CURRENTLY CARRY THE TOY BIKER MICE CARTOONS HAVE SLIPPED TO A 21 RATING FROM OCTOBER'S 25 PEAK ACCORDING TO A C NIELSEN THAT MEANS 21 OF ALL HOUSEHOLDS WITH TVS WATCHED SABAN ENTERTAINMENT'S MIGHTY MORPHIN POWER RANGERS SHOW HAS A 56 RATING MR GOLDMAN SAYS EARLY BIKER MICE SALES BEAT EXPECTATIONS THE CHALLENGE FOR US IS TO CONTINUE TO MARKET THE LINE WHICH HAS THE POTENTIAL TO GENERATE 100 MILLION IN ANNUAL SALES SOMETIME AFTER 1994 HE SAYS SEAN MCGOWAN AT GERARD KLAUER MATTISON RECOMMENDS GALOOB BUT SAYS HE URGES INVESTORS NOT TO BUY IF THEY DON'T THINK BIKER MICE WILL BE A HIT HE ENVISIONS ABOUT 45 MILLION IN BIKER MICE SALES THIS YEAR SEIDLER CO'S LAURIE SMITH EXPECTS 25 MILLION AT MOST BY CONTRAST THE YEAR'S SALES FOR POWER RANGERS COULD TOP 100 MILLION MR MCGOWAN FIGURES THE FACTORY MAKING BIKER MICE IN GUANGZHOU CHINA IS OWNED BY JETTA CO OF HONG KONG GALOOB TOLD ME THIS IS THE NEXT TEENAGE MUTANT NINJA TURTLES SO MAKE MANY BIKER MICE SAYS PATRICK LUKE JETTA'S DIRECTOR OF COST AND APPRAISAL FROM WHAT I HEAR IT'S NOT SELLING THAT WELL BY THE SKIN OF THEIR TEETH PROFESSIONAL BEARS POSTED AN ANNUAL PROFIT THEIR FIRST IN THREE YEARS THE BEARS KNOWN AS SHORTSELLERS BET ON SELECTED STOCKS TO DECLINE DROPS IN EAGLE HARDWARE DELL COMPUTER AND KENDALL SQUARE RESEARCH AMONG OTHERS HELPED THE SHORTS' CAUSE IN 1993 THE ROCKBRIDGE SHORTSELLERS' INDEX WHICH MEASURES PERFORMANCE FOR 20 LEADING SHORTSELLING FIRMS INCHED UP 02 FOR THE YEAR THANKS TO A 2 GAIN IN THE FOURTH QUARTER THE INDEX IS COMPILED BY ROCKBRIDGE PARTNERS IN CHARLOTTE NC 9401140030 940114 CREDIT MARKETS TREASURY ISSUES TUMBLE ON RETAIL SALES REPORT PUSHING UP YIELD ON BENCHMARK BOND TO 625 BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK FIGURES SHOWING THAT CONSUMER SPENDING WAS STRONGER THAN EXPECTED LAST MONTH SENT THE PRICES OF US TREASURY SECURITIES INTO A NOSEDIVE THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY A POINT OR NEARLY 10 FOR A BOND WITH 1000 FACE VALUE TO 99 29/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 625 FROM 618 ON WEDNESDAY TODAY'S PRICE ACTION HIGHLIGHTED HOW VULNERABLE THE MARKET REMAINS DESPITE ITS RECENTLY GOOD TONE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS THE MARKET PROVED TO BE VULNERABLE TO JUST MILDLY UNCOMFORTABLE ECONOMIC NUMBERS TRADERS REACTED TO NEWS FROM THE COMMERCE DEPARTMENT THAT RETAIL SALES ROSE 08 DURING DECEMBER MOST WALL STREET ECONOMISTS WERE LOOKING FOR A 04 GAIN ON THE INFLATION FRONT HOWEVER THE NEWS WAS NOT A SURPRISE THE LABOR DEPARTMENT REPORTED CONSUMER PRICES ROSE 02 IN DECEMBER WHILE THE SOCALLED CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS ROSE 03 LAST MONTH THE CPI DATA HAD LITTLE IMPACT ON TRADING BUT THE RETAIL SALES DATA IMMEDIATELY PROMPTED TRADERS TO UNLOAD SECURITIES THERE WAS SOME HEDGEFUND SELLING AFTER THE NUMBERS MOSTLY BY PEOPLE WHO HAD PROFITS FROM THE RALLY SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE SELLING PRESSURE CONTINUED VIRTUALLY UNABATED THROUGHOUT THE SESSION DEALERS SAID AND AS PRICES MOVED LOWER TECHNICAL LEVELS WERE BROKEN DRAWING IN EVEN MORE SELLING AS TRADING DREW TO A CLOSE THE MARKET WAS AT ITS SESSION LOWS YESTERDAY'S SELLOFF HALTED A RALLY THAT WAS TRIGGERED BY LAST WEEK'S WEAKERTHANFORECAST EMPLOYMENT FIGURES THAT REPORT SET OFF A BUYING FLURRY AMONG INVESTORS WHO HAD BEEN FEARING THAT ECONOMIC GROWTH MIGHT CONTINUE TO ACCELERATE INTO 1994 THOSE INVESTORS HAD BEEN UNDERINVESTED AND FOUND THEMSELVES CHASING PRICES HIGHER BUT BY YESTERDAY MORNING BOND PRICES WERE AT THE TOP END OF A RANGE THAT HAS BEEN INTACT SINCE EARLY NOVEMBER USING THE RETAIL SALES DATA AS AN EXCUSE INVESTORS REVERSED COURSE AND BEGAN SELLING IN ORDER TO BOOK PROFITS ACCORDING TO DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THE SELLOFF SHOWED THE MARKET IS STILL IN A RANGE CENTERED ON A 6 1/4 YIELD ON THE 30YEAR BOND WE'VE BEEN IN A RANGE FOR SOME TIME AND UNTIL WE SEE WHAT THE FIRST QUARTER LOOKS LIKE WE'LL REMAIN IN A RANGE MR FINE SAID THAT DOESN'T MEAN NOTE AND BOND PRICES ARE ABOUT TO HEAD BACK TOWARD THE LOWS REACHED DURING THE FIRST FEW DAYS OF JANUARY ANALYSTS SAID EARLY LAST WEEK THE 30YEAR BOND HIT A HIGH YIELD OF 642 AND THE FIVEYEAR NOTE YIELDED 530 THE RALLY OF THE PAST WEEK HOWEVER TOOK THE BOND YIELD DOWN TO 618 AND THE YIELD ON THE FIVEYEAR NOTE TO 495 I WOULD BE SURPRISED IF WE RETRACED ALL THE WAY TO A 642 YIELD ON THE BOND SAID MS CAMILLI OF RAMIREZ THERE IS STILL A LOT OF CASH UNDER THE MARKET THAT NEEDS TO BE PUT TO WORK AND IS SLOWLY GOING TO BE WORKED INTO BOTH THE TREASURYS AND CORPORATE BOND MARKETS THAT INVESTMENT DEMAND WILL IN FACT GRADUALLY PUSH YIELDS LOWER MS CAMILLI SAID ALL THAT MONEY IS CHASING TOO FEW SECURITIES AND THAT WILL ULTIMATELY PULL LONGTERM INTEREST RATES LOWER SHE SAID MR KARYDAKIS OF FIRST CHICAGO ALSO ARGUED THAT YESTERDAY'S SELLOFF WOULD TURN OUT TO BE ONLY A PAUSE FOR THE BOND MARKET I DON'T THINK THIS ELIMINATED THE BOND'S PROSPECTS OF TESTING 6 MR KARYDAKIS SAID BUT IT DID SHOW THE PROCESS TOWARD HIGHER PRICE LEVELS WILL BE A PAINFULLY SLOW ONE THE BOND MARKET WILL HAVE MORE ECONOMIC DATA TO CONTEND WITH THIS MORNING WHEN THE FEDERAL RESERVE WILL BE RELEASING DECEMBER INDUSTRIAL PRODUCTION AND CAPACITY FIGURES MOST ECONOMISTS BELIEVE THE NATION'S FACTORIES MINES AND UTILITIES PRODUCED 04 MORE IN DECEMBER THAN THEY DID IN NOVEMBER AND THAT THE UTILIZATION RATE ROSE TO 832 THEN AT MIDMORNING TRADERS WILL BE AWAITING WORD ON THE MIDMONTH CONSUMER CONFIDENCE REPORT FROM THE UNIVERSITY OF MICHIGAN LATE YESTERDAY THE FEDERAL RESERVE REPORTED THAT ITS WIDELY WATCHED M2 A MEASURE OF MONEY SUPPLY ROSE 74 BILLION IN THE WEEK ENDED JAN 3 THAT PUTS M2 GROWTH RATE AT 16 COMPARED WITH THE FOURTH QUARTER BASE OF 1992 WHICH IS JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 NEXT WEEK WILL BE A SHORTENED ONE FOR THE CASH BOND MARKET THE PUBLIC SECURITIES ASSOCIATION HAS RECOMMENDED THAT THE MARKET BE CLOSED MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY MORE THAN 1 BILLION OF CORPORATE DEBT WAS SOLD YESTERDAY INCLUDING OFFERINGS FROM HEILEMAN ACQUISITION CO AND NEWS AMERICA HOLDINGS INC MEANWHILE TRADING IN THE INVESTMENTGRADE SECTOR WAS EXTEMELY LIGHT WITH PRICES FOLLOWING TREASURYS LOWER MOST JUNK BOND PRICES ENDED UNCHANGED WITH ACTIVITY TAILING OFF AFTER A MODERATE AMOUNT OF TRADING DURING THE MORNING HEILEMAN ACQUISITION WHICH WAS EXPECTED TO COME TO MARKET WEDNESDAY SOLD 160 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES AT PAR TO YIELD 9625 THE NOTES ARE NONCALLABLE FOR FOUR YEARS AND RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP BT SECURITIES CORP WAS LEAD MANAGER OF THE OFFERING THE NOTES HAVE A THREEYEAR INITIAL PUBLIC OFFERING CALL OPTION FOR UP TO 35 OF THE ISSUE HEILEMAN ACQUISITION WAS ESTABLISHED BY LEVERAGE BUYOUT SPECIALISTS HICKS MUSE & CO TO ACQUIRE G HEILEMAN BREWING CO THE FIFTHLARGEST US BREWER AND PRODUCER OF BRANDS SUCH AS COLT 45 AND OLD STYLE PROCEEDS FROM YESTERDAY'S OFFERING WILL BE USED TO FINALIZE THE TRANSACTION WHICH IS SCHEDULED TO CLOSE ON JAN 21 ACCORDING TO A SPOKESMAN FROM HICKS MUSE & CO THE SPOKESMAN SAID HEILEMAN ALSO PLANS TO REFINANCE ITS 250 MILLION OF OUTSTANDING DEBT OTHER NEW ISSUES YESTERDAY INCLUDED NEWS AMERICA HOLDINGS' 200 MILLION OF 30YEAR DEBENTURES PRICED AT PAR TO YIELD 775 THE BONDS HAVE A 7 3/4 COUPON NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP LTD THE NOTES ARE RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WHILE MOST OF THE BONDS ISSUED YESTERDAY CAME FROM GOVERNMENT AGENCIES TWO INVESTMENTBANKING FIRMS JP MORGAN & CO AND MERRILL LYNCH & CO ALSO SOLD SECURITIES JP MORGAN ISSUED 300 MILLION OF 15YEAR NOTES WITH 6 1/4 COUPONS PRICED AT 99888 TO YIELD 6262 THE NONCALLABLE NOTES ARE RATED AA2 BY MOODY'S AND DOUBLEAPLUS BY S&P AND WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN MERRILL ISSUED 200 MILLION OF 12YEAR NONCALLABLE NOTES WITH 6 1/4 COUPONS PRICED AT 9934 TO YIELD 633 THE NOTES WHICH WERE LEADMANAGED BY MERRILL ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P MUNICIPAL SECURITIES SHOWED BROAD LOSSES SELLING PRESSURE FROM DEALERS AND INSTITUTIONAL ACCOUNTS CAUSED A PRETTY UGLY DAY IN WHICH PRICES GENERALLY SLUMPED AT LEAST 1/2 TO 3/4 POINT SAID GREG GIZZI SENIOR VICE PRESIDENT AT DILLON READ & CO THE ONLY ACTIVITY I SAW WAS SELLING MEANWHILE NEW MUNICIPAL SUPPLY HAS BEEN PLENTIFUL THIS WEEK TOTALING ROUGHLY 3 BILLION WITH NUMEROUS NEW DEALS FROM WHICH TO PICK AND CHOOSE MR GIZZI SAID INSTITUTIONAL INVESTORS ARE FINDING THEIR VALUE IN THE NEW DEALS AND SELLING INTO THE SECONDARY MARKET THERE IS ALSO DEALER SELLING ON TOP OF THAT HE SAID ADDING THAT UNLESS TREASURYS TURN AROUND THE TONE WILL STAY FAIRLY NEGATIVE BEAR STEARNS & CO PRICED THE 1337 MILLION PLANO INDEPENDENT SCHOOL DISTRICT COLLIN COUNTY TEXAS REFUNDING ISSUE TO YIELD FROM 265 IN 1995 TO 510 IN 2011 MORTGAGE SECURITIES DECLINED BUT NOT AS SHARPLY AS COMPARABLE TREASURY ISSUES NEAR THE CLOSE OF TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 1/2 S FOR FEBRUARY DELIVERY WERE OFF 16/32 AT 99 22/32 AMONG OTHER 6 1/2 S FOR FEBRUARY DELIVERY FEDERAL HOME LOAN MORTGAGE CORP GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE BOTH DOWN 16/32 AT 99 26/32 AND 99 22/32 RESPECTIVELY 9401140029 940114 ENTERPRISE FIRMS BACKED BY VENTURE CAPITALISTS DO WELL IN IPOS LAST YEAR'S RECORD TALLY WAS BOOSTED BY RENEWED TECHNOLOGY INTEREST BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL THE LITTLE GUYS RAKED IN BIG BUCKS FROM THE INVESTING PUBLIC LAST YEAR SMALL COMPANIES BACKED BY VENTURE CAPITALISTS RAISED A RECORD 69 BILLION IN INITIAL PUBLIC OFFERINGS LAST YEAR CONCLUDES AN ANNUAL SURVEY BY VENTUREONE A SAN FRANCISCO RESEARCH CONCERN THE FIGURE BOOSTED BY INVESTORS' REVIVED INTEREST IN HIGHTECHNOLOGY INDUSTRY SURPASSED THE 1992 RECORD OF 55 BILLION THE FIRM REPORTS THOUGH MANY COMPANIES OUTSIDE THE STUDY'S SCOPE ALSO WENT PUBLIC LAST YEAR THE VENTUREONE SURVEY SHEDS LIGHT ON A PARTICULARLY ENTREPRENEURIAL AND FASTGROWING GROUP CONCERNS THAT HAVE WON SUPPORT FROM VENTURE CAPITALISTS FOR MANY ENTREPRENEURS WHO TURN TO VENTURE CAPITAL EARNING BIG PROFITS ON PAPER AT LEAST IS THE ULTIMATE GOAL IN GOING PUBLIC THE AVERAGE ANNUAL REVENUE OF SURVEYED COMPANIES RANGED BETWEEN 32 MILLION FOR MEDICALCOMPOUNDS PRODUCERS AND 87 MILLION FOR ELECTRONICS AND COMPUTER CONCERNS THE AVERAGE NUMBER OF EMPLOYEES RANGED FROM 53 AT MEDICALCOMPOUNDS CONCERNS TO 1418 AT HEALTHCARE SERVICES DEPENDING ON THE INDUSTRY THE AVERAGE AMOUNT RAISED FROM VENTURE CAPITALISTS BEFORE THE CONCERNS WENT PUBLIC RANGED FROM 11 MILLION TO 24 MILLION AVERAGE AGE OF THE COMPANIES RANGED FROM 54 YEARS TO 107 YEARS COMPUTER STARTUPS DOMINATED THE PUBLIC OFFERINGS LAST YEAR VENTUREONE SAYS THESE BUSINESSES RAISED ABOUT 25 BILLION IN 1993 THAT'S ALMOST 1 BILLION MORE THAN IN 1992 IN THE ELECTRONICS AREA FOR EXAMPLE THERE WERE 24 IPOS UP FROM 14 IN 1992 ON AVERAGE SUCH STARTUPS WERE 10 YEARS OLD HAD 359 EMPLOYEES AND HAD PREVIOUSLY RAISED 146 MILLION FROM VENTURECAPITAL INVESTORS THE TYPICAL CONCERN HAD ANNUAL REVENUE OF 873 MILLION AND NET INCOME OF 1 MILLION HIGHTECH COMPANIES MANY THAT HADN'T BEEN ABLE TO GO PUBLIC PREVIOUSLY FINALLY CAME INTO MATURITY IN 1993 SAYS INVESTMENT BANKER SANFORD ROBERTSON OF ROBERTSON STEPHENS & CO IN SAN FRANCISCO THEY BECAME MATURE AT A TIME WHEN TECHNOLOGY STOCKS WERE GETTING MORE OF AN AUDIENCE IN THE PUBLIC MARKET YET THERE WAS A PAUCITY OF OFFERINGS LAST YEAR AMONG BIOTECHNOLOGY AND HEALTHCARE COMPANIES THE DARLINGS OF THE NEWISSUES MARKET IN 1992 UNCERTAINTY OVER PRESIDENT CLINTON'S HEALTHCARE REFORM PROPOSALS AND THE BIOTECHNOLOGY INDUSTRY'S FAILURE TO COME UP WITH A BLOCKBUSTER PRODUCT STIFLED INTEREST IN THOSE INDUSTRIES THE VENTUREONE REPORT SAYS TOTAL HEALTHCARE OFFERINGS SLID 56 TO 740 MILLION FROM 17 BILLION IN 1992 SO FAR AT LEAST THE OVERALL BOOM IN PUBLIC OFFERINGS SHOWS LITTLE SIGNS OF ABATING IN 1994 MR ROBERTSON SAYS THAT HIS FIRM PLANS TO UNDERWRITE 12 NEW ISSUES DURING THIS YEAR'S FIRST QUARTER ROBERTSON STEPHENS PARTICIPATED IN 24 IPOS IN ALL OF 1993 NONETHELESS DAVID GLEBA PRESIDENT OF VENTUREONE DOESN'T EXPECT 1993'S FAVORITE INDUSTRY SEGMENTS WILL MAINTAIN THEIR POPULARITY THIS YEAR THE PUBLIC MARKET HAS A FASHION STREAK HE SAYS IT IS WILLING TO INVEST IN HIGHRISK DEVELOPMENT CONCEPTS BUT JUST AS WILLING TO DUMP THEM BECAUSE COMPANIES HAVEN'T DELIVERED RESULTS FAST ENOUGH HE EXPLAINS IN 1993 INVESTOR INTEREST IN THESE YOUNG COMPANIES OFTEN FOCUSED ON THE NEW MEDIA AND COMMUNICATIONS INDUSTRY SEGMENTS THE SPOTLIGHT ON INTERACTIVE MEDIA AND THE EMERGING INFORMATION SUPERHIGHWAY HELPED EARLYSTAGE COMPANIES SUCH AS 3DO CORP AND BROADBAND TECHNOLOGIES INC 3DO IN SAN MATEO CALIF RAISED 44 MILLION TO DEVELOP INTERACTIVE MULTIMEDIA GAMES BROADBAND A RESEARCH TRIANGLE NC COMPANY THAT IS DEVELOPING TECHNOLOGY TO ENABLE PHONE COMPANIES TO DELIVER VIDEOONDEMAND SERVICES TO THE HOME RAISED 63 MILLION THE HIGHTECH REVIVAL ALSO BENEFITED A WIDE SPECTRUM OF COMPUTER TECHNOLOGY COMPANIES AMONG THEM INTUIT INC WHICH MAKES QUICKEN ACCOUNTING SOFTWARE POWERSOFT CORP AND GUPTA CORP PROVIDERS OF CLIENTSERVER SOFTWARE AND AUSPEX SYSTEMS INC A PROVIDER OF NETWORK SERVERS AND ADVANCED NETWORK SERVICES BUT COMPANIES OUTSIDE THE COMPUTERS AND NEW MEDIA FIELDS MADE THREE OF THE LARGEST OFFERINGS AMERICAN MOBILE SATELLITE CORP A WASHINGTON DC SATELLITE OPERATOR RAISED 178 MILLION THE COMPANY PARTLY OWNED BY MTEL CORP MCCAW CELLULAR COMMUNICATIONS INC AND GENERAL MOTORS CORP'S HUGHES COMMUNICATIONS UNIT PLANS TO LAUNCH ITS FIRST SATELLITE THIS YEAR PETSMART INC A CHAIN OF PETFOOD SUPERMARKETS BASED IN PHOENIX RAISED 130 MILLION SAN FRANCISCO'S KENETECH CORP WHICH OWNS US WINDPOWER INC A LARGE DEVELOPER OF WINDPOWER ENERGY TECHNOLOGY RAISED 99 MILLION KENETECH ALSO HAD ONE OF THE HIGHEST VALUATIONS WHEN IT WENT PUBLIC LAST SEPTEMBER 487 MILLION 9401140028 940114 INTERNATIONAL SIEMENS SEES LOWER PROFIT FOR FISCAL YEAR BY ROGER MALONE SPECIAL TO THE WALL STREET JOURNAL MUNICH SIEMENS AG THE BIG GERMAN ELECTRONICS CONCERN SHOCKED THE EQUITIES MARKET BY ANNOUNCING IT EXPECTS PROFIT TO FALL BY 10 TO 15 IN THE CURRENT FISCAL YEAR THE DISCLOSURE CAME DURING A GENERALLY DOWNBEAT NEWS CONFERENCE IN WHICH SIEMENS CHAIRMAN HEINRICH VON PIERER SAID PROFIT FROM THE COMPANY'S WIDERANGING INVESTMENT PORTFOLIO WHICH IN THE PAST HAS HELPED OFFSET DEPRESSED OPERATING RESULTS COULD NOT BE COUNTED ON FOR THE FISCAL YEAR ENDING SEPT 30 IF THE FORECAST IS REALIZED IT WOULD REPRESENT THE FIRST TIME IN SEVEN YEARS THAT SIEMENS' NET INCOME HASN'T INCREASED REACTING TO THE NEWS SIEMENS'S SHARES FELL 48 TO 726 MARKS 41868 DOWN 3650 MARKS ON THE FRANKFURT STOCK EXCHANGE THE FORECAST WAS MADE DESPITE HIGHER SALES AND NET INCOME FOR THE FISCAL FIRST QUARTER RESULTS OF WHICH WERE ANNOUNCED DURING THE NEWS CONFERENCE FOR THE QUARTER ENDED DEC 31 NET ROSE 22 TO 415 MILLION MARKS 2393 MILLION FROM 406 MILLION A YEAR EARLIER SALES FOR THE PERIOD WERE UP 24 TO 13 BILLION WHILE NEW ORDERS WERE UP 15 TO 214 BILLION MARKS BUT KARLHERMANN BAUMANN CHIEF FINANCIAL OFFICER SAID NEW ORDERS AND SALES FOR THE GROUP ARE EXPECTED TO STAGNATE FOR THE YEAR AS A WHOLE WHILE PRICE PRESSURES INCREASE I THINK PEOPLE ARE GENUINELY SURPRISED SAID IAN MACLEOD PARISBASED EUROPEAN TECHNOLOGY ANALYST FOR COUNTY NATWEST RESEARCH NATWEST HAD PROJECTED AN 8 INCREASE IN SIEMENS NET FOR THE CURRENT YEAR HE SAID BUT QUICKLY REDUCED THE FORECAST TO MATCH MR BAUMANN'S STATEMENTS NATWEST ALSO SWITCHED ITS RECOMMENDATION FOR SIEMENS SHARES FROM BUY TO SELL FOLLOWING THE NEWS MR MACLEOD SAID AN ANALYST FOR A FRANKFURT BANK SUGGESTED THAT SIEMENS' SURPRISING ANNOUNCEMENT COULD BE AN ATTEMPT TO SET THE STAGE FOR DRASTIC JOB CUTS DURING THIS FISCAL YEAR INDEED MR VON PIERER ANNOUNCED YESTERDAY THAT THE COMPANY WILL BRING ITS WORK FORCE TO FEWER THAN 390000 EMPLOYEES DURING THE FISCAL YEAR A NET REDUCTION OF MORE THAN 15000 OF THESE JOB CUTS ABOUT 5000 POSTS WERE SLICED DURING THE FIRST QUARTER OF THE 15000 ABOUT A THIRD WILL BE FROM THE MONEYLOSING COMPUTER UNIT SIEMENS NIXDORF INFORMATIONSSYSTEME AG MR BAUMANN ADDED LATER MR VON PIERER CONFIRMED REPORTS THAT THE COMPANY IS NAMING GERHARD SCHULMEYER PREVIOUSLY HEAD OF THE US OPERATIONS OF SWEDISHSWISS ENGINEERING CONCERN ABB ASEA BROWN BOVERI LTD TO TRY TO TURN SIEMENS NIXDORF AROUND 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 9401140027 940114 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 59 DAYS 308 60 TO 89 DAYS 310 90 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 321 180 TO 264 DAYS 330 265 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 313 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 270 SIX MONTHS 291 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 303 ONE MONTH 310 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 301 60 DAYS 303 90 DAYS 306 120 DAYS 309 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/8 3 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 690 60 DAYS 697 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 689 60 DAYS 699 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401140026 940114 PAPER CONCERNS EXPECTED TO GET RELIEF THIS YEAR US RECOVERY PRICE RISE ARE SEEN CONTRIBUTING TO SOLID PROFIT GROWTH BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL NORTH AMERICAN PAPER PRODUCERS BATTERED BY A FOURYEAR SLUMP MAY FINALLY GET SOME RELIEF THIS YEAR FOURTHQUARTER RESULTS ARE EXPECTED TO SHOW ONLY MODEST IMPROVEMENT FROM THE PREVIOUS YEAR'S DEPRESSED LEVELS FOR THE INDUSTRY AS A WHOLE BUT THE US ECONOMIC RECOVERY AND HIGHER PRICES FOR CERTAIN PAPER PRODUCTS SHOULD LEAD TO STRONGER EARNINGS GROWTH IN THE YEAR AHEAD ANALYSTS AND SOME INDUSTRY OFFICIALS SAY AND WOOD PRODUCTS THE MAINSTAY FOR MANY COMPANIES LAST YEAR CONTINUE TO BENEFIT FROM BUOYANT DEMAND AND TIGHT SUPPLIES IT HAS BEEN A VERY LONG DOWN CYCLE AND BOTTOM SAYS LOWELL MOHOLT INVESTOR RELATIONS DIRECTOR AT WEYERHAEUSER CO BUT WE'RE CONFIDENT THAT WE'RE ON THE UPLEG CHIP DILLON AN ANALYST WITH SALOMON BROTHERS SAYS ANNUAL EARNINGS FOR THE US PAPER AND FORESTPRODUCTS INDUSTRY COULD RISE BY MORE THAN 30 IN 1994 MARK DIVERIO OF UBS SECURITIES SAYS THE FIRST QUARTER WILL LOOK A LOT LIKE THE FOURTH QUARTER OF 1993 BUT HE PREDICTS EARNINGS WILL GAIN MOMENTUM AS THE YEAR GOES ON SOME INDUSTRY OBSERVERS CAUTION THAT VARIOUS FACTORS COULD STILL SLOW THE PACE OF RECOVERY WHILE THE US ECONOMY IS PERKING UP EUROPE AND JAPAN ARE STILL MIRED IN MUD NOTES VINCENT HANNITY AN INVESTOR RELATIONS OFFICIAL WITH BOISE CASCADE CORP UNTIL CONSUMPTION OF PAPERS IN THOSE REGIONS STRENGTHENS YOU WON'T SEE A FULL ROBUST RECOVERY FOR SOME PAPER GRADES HE SAYS MEANWHILE MAKERS OF PACKAGING MATERIALS ARE STARTING TO BENEFIT FROM US INDUSTRIAL GROWTH PRICES FOR LINERBOARD USED IN CORRUGATED CONTAINERS ROSE 25 A TON DURING THE FOURTH QUARTER TO ABOUT 315 A TON AND UNION CAMP CORP AND STONE CONTAINER CORP HAVE ANNOUNCED A FURTHER 30 PRICE INCREASE FOR FEB 1 THE FIRMING MARKET FOR CONTAINERBOARD IS INDICATIVE OF THE ECONOMIC RECOVERY TAKING PLACE SAYS WEYERHAEUSER'S MR MOHOLT CORRUGATED BOXES TYPICALLY LEAD THE WAY AS SHIPMENTS OF INDUSTRIAL GOODS PICK UP HE SAYS PRICES FOR WHITE PAPERS USED IN OFFICES TEND TO FOLLOW MAKERS OF UNCOATED WHITE PAPER FOR PHOTOCOPYING HAVE ANNOUNCED PRICE INCREASES FOR JANUARY ANALYSTS SAY THOSE INCREASES MAY NOT STICK HOWEVER PARTLY BECAUSE TWO NEW BUSINESSPAPER MACHINES ARE DUE TO START PRODUCING IN THE US THIS SPRING POTENTIALLY INCREASING SUPPLY NEWSPRINT PRODUCERS WHO PUSHED PRICES UP LAST SPRING ONLY TO WATCH THEM ROLL BACK LATER HAVE ANNOUNCED A MARCH INCREASE OF 48 A METRIC TON OR ABOUT 11 IN EASTERN NORTH AMERICA SOME HAVE CURBED PRODUCTION TO SOAK UP EXCESS SUPPLY AND IMPROVE PROSPECTS FOR IMPLEMENTING THE INCREASE PULP PRICES WHICH WERE DRIVEN BELOW HALF THEIR 1989 LEVELS LATE LAST YEAR ARE STARTING TO EDGE UP BUT THE BUSINESS REMAINS WEAK WE THINK WE'LL GET INCREASES IN THE FIRST QUARTER BUT IT'S BASICALLY SUPPLYDRIVEN BECAUSE COMPANIES ARE TAKING DOWN TIME SAYS VAL SHARP INVESTOR RELATIONS MANAGER AT MACMILLAN BLOEDEL LTD IN VANCOUVER BRITISH COLUMBIA PRICES FOR WOOD PRODUCTS BUTTRESSED BY ENVIRONMENTAL RESTRICTIONS ON TIMBER HARVESTING SHOULD STAY STRONG IN 1994 ANALYSTS SAY LATENT DEMAND FOR NEW HOMES IS BEING UNLEASHED AS PEOPLE SENSE THAT US INTEREST RATES HAVE BOTTOMED OUT SAYS WEYERHAEUSER'S MR MOHOLT EVEN LAST NOVEMBER'S PROPOSAL BY THE US ENVIRONMENTAL PROTECTION AGENCY FOR MORE STRINGENT POLLUTION REGULATIONS COULD ULTIMATELY ENHANCE THE PAPER INDUSTRY'S FORTUNES DESPITE EXPECTED COMPLAINTS FROM PAPER PRODUCERS SOME ANALYSTS SAY MARK ROGERS AN ANALYST WITH PRUDENTIAL SECURITIES SAYS IMPLEMENTATION OF THE PROPOSALS IN 1995 COULD CAUSE COMPANIES TO SPEND CAPITAL ON ENVIRONMENTAL EQUIPMENT INSTEAD OF NEW CAPACITY RESTRICTING SUPPLY AND SUPPORTING PRICES IN THE FOLLOWING YEARS 9401140025 940114 LETTERS TO THE EDITOR YOU CALL IT CULTURE' WE SAY IT'S PRODUCT' INVESTORS IN EURO DISNEY SCA WILL NO DOUBT THANK RAYMOND SOKOLOV AUTHOR OF FRENCH SPANISH KILL ART WITH KINDNESS LEISURE & ARTS DEC 29 FOR GETTING A BIT OF THEIR OWN BACK AT THE OLD WORLD INGRATES WHO HAVE SHUNNED THEIR FINE THEME PARK HOWEVER ONE WONDERS IF THE REST OF YOUR READERS WOULDN'T PREFER A CANDID VIEW OF EUROPEAN CULTURAL POLICY TO THE RATHER TENDENTIOUS PICTURE MR SOKOLOV PRESENTS THEY MIGHT FOR INSTANCE BE INTERESTED TO LEARN THAT UNLIKE AMERICANS PERHAPS THE FRENCH ARE BY AND LARGE UNDER NO ILLUSIONS ABOUT YANKEE JUNK ART BEING ART AT ALL OR FOR THAT MATTER US POPULAR CULTURE BEING CULTURE ON THE WHOLE FRENCH PEOPLE RECOGNIZE THAT WHAT CULTURAL CONSUMERS AND ART PROLES PAY FOR IS NEITHER CULTURE NOR ART BUT MERELY PRODUCT THE SIMPLE FACT THAT A FRENCH NEWSPAPER LISTS SHOWTIMES FOR GERMINAL AND JURASSIC PARK UNDER THE SINGLE RUBRIC ARS ET SPECTACLES DOESN'T LEAVE MANY READERS WONDERING WHICH IS ART AND WHICH SPECTACLE MOREOVER IT IS PRECISELY TO ENSURE THERE IS AN ADEQUATE SUPPLY OF BOTH ON OFFER THAT THE FRENCH GOVERNMENT HAS BEEN RATCHETING UP RESTRICTIONS ON AUDIOVISUAL IMPORTS NOR IN SO DOING IS IT BY ANY MEANS ACTING TO CONSTRAIN DEMOCRATIC FREEDOM OF CHOICE ON THE CONTRARY IT IS TRYING TO MAINTAIN THE FAR BROADER FREE CHOICE AFFORDED BY THE SOCALLED CULTURAL EXCEPTION AS COMPARED WITH THAT PREVAILING IN UNBRIDLED FREE MARKETS AFTER ALL AS MR SOKOLOV HIMSELF ADMITS IN ADDITION TO EUROPEANMADE FILMS MARIEYVONNE AND THIERRY CAN STILL SEE JURASSIC PARK' IF THEY WANT YES AND AS MANY MORE WILDLY POPULAR AMERICAN MOVIES AS THEY PLEASE BUT WHAT ABOUT THEIR AMERICAN COUNTERPARTS OF THE VARIOUS OSCAR NOMINEES FOR BEST FOREIGN FILM HOW MANY AMERICANS LIVING OUTSIDE NEW YORK OR SAN FRANCISCO WILL HAVE HAD A CHANCE TO SEE MORE THAN A SINGLE PROBABLY DUBBED SPECIMEN LAISSEZFAIRE HAS EFFECTIVELY LEFT THEM WITH LITTLE CHOICE BUT TO TAKE WHAT HOLLYWOOD DISHES UP 9401140024 940114 WHITE HOUSE BACKS BROAD INTERPRETATION OF STOCKFRAUD LAW WASHINGTON THE CLINTON ADMINISTRATION ASKED THE SUPREME COURT TO RULE THAT A FEDERAL LAW BARRING FRAUD IN INITIAL PUBLIC SALES OF STOCK ALSO APPLIES TO RESALES OF THE SHARES THE ADMINISTRATION MADE THE REQUEST IN A BRIEF URGING THE HIGH COURT TO REVIEW A DISPUTE BETWEEN A NEW YORK INVESTMENT BANKING FIRM ALLEN & CO AND AN AUSTRALIAN HOLDING COMPANY PACIFIC DUNLOP LTD THE JUSTICES HAD ASKED THE ADMINISTRATION FOR ADVICE ON WHETHER TO HEAR THE PRIVATE DISPUTE THE PROVISION AT ISSUE SECTION 122 OF THE SECURITIES ACT OF 1933 BARS FALSE STATEMENTS OR OMISSIONS OF MATERIAL FACTS IN SECURITIES SALES INVOLVING A PROSPECTUS OR ORAL COMMUNICATION THE PROVISION IS A POTENT WEAPON BECAUSE UNLIKE ANOTHER MAJOR ANTIFRAUD PROVISION SECTION 10B OF THE 1934 SECURITIES EXCHANGE ACT SECTION 122 DOESN'T REQUIRE INVESTORS TO PROVE THAT THEY ACTUALLY RELIED ON FRAUDULENT STATEMENTS OR OMISSIONS IN DECIDING WHETHER TO BUY STOCK SECTION 122 ALSO ALLOWS FOR BIGGER DAMAGE AWARDS CONFLICTING LOWERCOURT RULINGS HAVE LED TO CONFUSION OVER WHETHER SECTION 122 APPLIES TO SECURITIES TRANSACTIONS OTHER THAN INITIAL PUBLIC OFFERINGS THE JUSTICES ARE EXPECTED TO ANNOUNCE IN COMING WEEKS WHETHER THEY WILL CLARIFY THE CONFUSION BY HEARING ALLEN & CO'S APPEAL OF A RULING BY THE FEDERAL APPEALS COURT IN CHICAGO THE APPEALS COURT SAID THAT SECTION 122 MAY BE APPLIED TO TRANSACTIONS OTHER THAN INITIAL OFFERINGS THE CASE BEGAN WHEN A UNIT OF PACIFIC DUNLOP SUED ALLEN & CO UNDER SECTION 122 THE UNIT ALLEGED THAT THE INVESTMENT BANKING FIRM HAD SOLD PACIFIC DUNLOP STOCK IN A BATTERYMANUFACTURING COMPANY WITHOUT REVEALING THAT THE COMPANY FACED EXTENSIVE ENVIRONMENTAL CLAIMS A FEDERAL TRIAL JUDGE IN CHICAGO DISMISSED THE SUIT BUT THE APPEALS COURT REVERSED THAT RULING ALLEN & CO THEN APPEALED TO THE SUPREME COURT IF THE HIGH COURT AFFIRMS THE APPELLATE COURT'S BROAD INTERPRETATION OF SECTION 122 IT WOULD GIVE PLAINTIFFS AN ADVANTAGE IN LAWSUITS ALLEGING DISHONESTY IN SECURITIES DEALS ALLEN & CO VS PACIFIC DUNLOP HOLDINGS INC 9401140023 940114 TECHNOLOGY BY JIM CARLTON SILICON VALLEY PUNDITS HAVE LONG PROPHESIED THAT DIGITAL ELECTRONICS WOULD ECLIPSE TRADITIONAL CONSUMER ELECTRONICS AND THEY MAY BE RIGHT THIS YEAR DESPITE A REVIVED ECONOMY SALES OF OLDLINE ELECTRONICS LIKE TELEVISION SETS AND STEREOS ARE EXPECTED TO SLOW SHARPLY AT ITS CONSUMER ELECTRONICS SHOW LAST WEEKEND IN LAS VEGAS THE ELECTRONIC INDUSTRIES ASSOCIATION FORECAST THAT US GROWTH IN COLORTV SALES WILL BE LESS THAN 3 THIS YEAR DOWN FROM 10 LAST YEAR GROWTH IN AUDIOSYSTEM SALES IS EXPECTED TO BE 17 DOWN FROM 65 THE FORECAST DRAWN FROM A CONSENSUS OF MAJOR MANUFACTURERS IS FOR CONSUMER ELECTRONICS SALES IN THE US TO RISE TO 4141 BILLION OR 44 FROM AN ESTIMATED 3966 BILLION LAST YEAR WHICH WAS UP 63 FROM 1992 MANUFACTURERS EXPECT A SLOWDOWN IN PART BECAUSE CONSUMERS MAY FIND THEY HAVE LESS SPENDING MONEY AFTER THIS YEAR'S NEW TAX BITE MANUFACTURERS HOPE THEIR FORECAST WILL PROVE WRONG NOTING THEY HAVE UNDERESTIMATED SALES IN THE PAST BUT INDUSTRY ANALYSTS SAY CONVENTIONAL CONSUMER ELECTRONICS ARE OLD NEWS TELEVISION AND SOUND PRODUCTS WHICH ACCOUNT FOR TWOTHIRDS OF CONSUMER ELECTRONICS SALES ARE IN SO MANY HOMES THAT WHEN MONEY IS TIGHT CONSUMERS WILL SPEND IT ELSEWHERE IN CONTRAST SALES OF CONSUMER COMPUTER PRODUCTS A RELATIVELY NEW CATEGORY IN CONSUMER ELECTRONICS ARE EXPECTED TO SOAR THIS YEAR WITH PCS IN FEWER THAN A THIRD OF AMERICAN HOMES THE ELECTRONIC INDUSTRIES ASSOCIATION FORECASTS HOME COMPUTER SALES WILL JUMP NEARLY 12 TO 544 BILLION FROM 486 BILLION LAST YEAR WHEN SALES ROSE 74 AT THE LAS VEGAS SHOW SOME OF THE LARGEST CROWDS SWARMED AROUND COMPUTINGSECTION BOOTHS EVEN AROUND THOSE WITH RELATIVELY MUNDANE TECHNOLOGY WHILE MANY BOOTHS WITH MORE CONVENTIONAL CONSUMER FARE DREW SPARSE TRAFFIC ONE ATTENTIONGETTER WAS A PROGRAM FOR INTERNATIONAL BUSINESS MACHINES' VALUEPOINT COMPUTER THAT CAN TAKE VERBAL DICTATION THE SPEECH RECOGNITION TECHNOLOGY IS STILL PRIMITIVE THOUGH IBM SAYS THE MACHINE CAN BOG DOWN IF THERE IS MUCH BACKGROUND NOISE LIKE THAT AT A TRADE SHOW CROWDS ALSO FLOCKED COMPAQ COMPUTER'S BOOTH WHERE THE COMPANY SHOWED ITS HOTSELLING LINE OF PRESARIO COMPUTERS INTRODUCED LAST SUMMER WITH AN ACTING ENSEMBLE PERFORMING TARZANANDJANE SKITS TO THE THEME OF IT'S A JUNGLE OUT THERE REFERRING TO THE PC COMPETITION COMPAQ DEMONSTRATED SUCH PRESARIO FEATURES AS BUILTIN VOICE MAIL AND INTERNAL FAX ABILITY AS WELL AS MULTIMEDIA CAPABILITY TO PROVIDE FULLMOTION VIDEO AND SOUND ALSO DRAWING CROWDS WAS A PRODUCT CALLED EDGE 16 WHICH LETS TWO PEOPLE IN DIFFERENT CITIES PLAY A VIDEO GAME ON SEGA ENTERPRISES PLAYERS THE PRODUCT DEVELOPED BY SAN FRANCISCOBASED PF MAGIC WITH AMERICAN TELEPHONE & TELEGRAPH AND AVAILABLE THIS FALL FOR UNDER 150 USES NEW AT&T TECHNOLOGY IT LETS PLAYERS CONVERSE OVER THE PHONE LINE THE GAME COMPUTERS ARE USING SOFTWARE VENDORS LIKE MICROSOFT EAGER FOR A SHARE OF CONSUMERS' DISCRETIONARY DOLLARS WERE PROMOTING CHILDREN'S PROGRAMS AMONG THE FASTESTGROWING SOFTWARE MARKETS WORDPERFECT SHOWED NEW PROGRAMS LIKE KAP'N KARAOKE WHICH FEATURES SINGALONG TUNES FOR CHILDREN AND WALLOBEE JACK AN INTERACTIVE ADVENTURE CARTOON NEWCOMERS LIKE WORDPERFECT SEE CHILDREN AS A BIG FORCE BEHIND CONSUMERS' SHIFT TOWARD SPENDING ON COMPUTERS INSTEAD OF TV SETS I CALL IT THE TUG' FACTOR KIDS WANT COMPUTERS SAYS A MARKETING DIRECTOR FOR WORDPERFECT WHICH SET UP SHOP AT THE CONSUMER SHOW FOR THE FIRST TIME THIS YEAR OLDLINE CONSUMER ELECTRONICS MAKERS DO HAVE A FEW TRICKS IN THEIR BAGS PANASONIC DISPLAYED A PORTABLE COMPACTDISK PLAYER WITH A THREEINCH VIDEO SCREEN FOR VIEWING MOVIES AND MUSIC VIDEOS THE VIDEO CD PLAYER SHOWN FOR THE FIRST TIME IN THE US CAN PLAY DISKS HOLDING UP TO 74 MINUTES OF PICTURES AND SOUND BUT PANASONIC OFFICIALS SHOWED ONLY A CRUDE PROTOTYPE THAT WAS SO UNRELIABLE IT FAILED TO SHOW A TRAILER TO THE FILM JURASSIC PARK DURING A PRESENTATION PANASONIC HOPES TO GET THE PLAYER TO THE US MARKET BY 1995 SANYO FISHER DEMONSTRATED ITS NEW MINICD PLAYERS FOR CARS THE PLAYERS WHICH ARE TO HIT THE US MARKET THIS SUMMER AT AN UNDISCLOSED PRICE POP INTO THE DASHBOARD AND PLAY 2 1/2INCH COMPACT DISKS RATHER THAN THE CONVENTIONAL FIVEINCH CDS PANASONIC ALSO DISPLAYED A STANDARD 14INCH FLAT TV SET THAT IS LESS THAN FOUR INCHES DEEP INSTEAD OF 14 INCHES DEEP THE FLAT SETS INTRODUCED IN JAPAN LAST FALL FOR ABOUT 3000 SHOULD BE POPULAR RETAIL BUYERS SAY BECAUSE THEY TAKE UP LESS SPACE PANASONIC EXPECTS TO SHIP THE SETS TO THE US BY EARLY NEXT YEAR BUYERS SAY THEY SHOULD SELL WELL FOR UNDER 2000 THE FABLED 500CHANNEL CABLE SYSTEM MAY BE SOME YEARS OFF BUT THOMSON CONSUMER ELECTRONICS IS OFFERING 150 CHANNELS THROUGH SPACE ITS RCA DIGITAL SATELLITE SYSTEM AN 18INCH DISH STARTING AT 699 RETRIEVES TV CHANNELS FROM SATELLITES BUYERS SAY THE DISH SHOULD SELL WELL BECAUSE IT IS SO SMALL STILL DICK DICERCHIO EXECUTIVE VICE PRESIDENT OF PRICE COSTCO OBSERVED I STILL CAN'T FIGURE OUT HOW YOU INSTALL IT THOMSON ACKNOWLEDGING IT WOULD REQUIRE HANDYMAN SKILLS RECOMMENDED PROFESSIONAL INSTALLATION DIRECTOR STEVEN SPIELBERG ARRIVED AT THE SHOW WITH SIX BODYGUARDS TO PLAY THE VIDEOGAME VERSION OF HIS MOVIE JURASSIC PARK ON PLAYERS FROM NINTENDO SEGA AND 3DO PLAYERS TELEVISIONS FINALLY UPSTAGED COMPUTERS DURING THE FOOTBALL PLAYOFF MATCH BETWEEN THE KANSAS CITY CHIEFS AND PITTSBURGH STEELERS AS LARGE CROWDS GATHERED AT PANELS OF TV SCREENS TO WATCH THE CHIEFS SNATCH A VICTORY 9401140021 940114 COMMODITIES GOLD SILVER FUTURES RALLY AMID INFLATION FEARS FUELED BY RETAIL PRICES WIDE COMMODITY GAINS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES ROSE ON POSITIVE RETAIL SALES FIGURES AND BROAD COMMODITYPRICE GAINS THAT FUELED INFLATION FEARS ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY CLIMBED 370 TO 39060 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT WAS UP 105 CENTS TO SETTLE AT 5205 AN OUNCE THE COMMERCE DEPARTMENT YESTERDAY REPORTED RETAIL SALES FOR DECEMBER UP 08 OR ROUGHLY DOUBLE THE LEVEL OF INCREASE THAT MOST ANALYSTS HAD EXPECTED THAT GAVE A BOOST TO THE ENTIRE METALS COMPLEX SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH MEANWHILE HUGE GAINS IN GRAIN FUTURES PRICES DROVE A SURGE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF COMMODITY PRICES WHICH SETTLED AT 22797 UP 254 FOR THE DAY STRENGTH IN THIS WIDELY WATCHED INDEX OFTEN IS INTERPRETED AS AN EARLY HINT OF AN UPTURN IN INFLATION ACCORDING TO SOME NEWS REPORTS AN ECONOMIC POLICY DOCUMENT OF THE AFRICAN NATIONAL CONGRESS HAS CALLED FOR REVERTING SOUTH AFRICA'S VAST MINERAL WEALTH TO NATIONAL CONTROL THE ANC IS WIDELY EXPECTED TO WIN CONCLUSIVE VICTORIES WHEN BLACK SOUTH AFRICANS GO TO THE POLLS ON APRIL 27 TO ELECT A NEW GOVERNMENT SOUTH AFRICA IS THE SOURCE OF MUCH OF THE WORLD'S GOLD SUPPLY ANALYSTS ACKNOWLEDGED YESTERDAY THAT THE REPORTS ABOUT POSSIBLE NATIONALIZATION OF THE COUNTRY'S GOLD MINES MAY HAVE PRESSURED GOLD PRICES UPWARD BUT THEY SAID THE RALLY WAS DRIVEN PRIMARILY BY OTHER FACTORS NOBODY WAS TALKING ABOUT THIS ANC THING IN THE MARKETS SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC PROBABLY MORE INFLUENTIAL ON SILVER PRICES YESTERDAY WERE INDICATIONS THAT SUPPLIES OF SILVER ARE DECLINING IN COMEXAPPROVED WAREHOUSES COMEX STOCKS WERE REPORTED TO HAVE DECLINED BY 14 MILLION OUNCES ON WEDNESDAY AND 500000 YESTERDAY LEAVING STOCKS AT AN UNUSUALLY LOW 2573 MILLION OUNCES THIS CONVEYS IDEAS THAT PHYSICAL DEMAND FOR SILVER IS PICKING UP MR SAVAIKO SAID COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY HELPED DRIVE YESTERDAY'S RALLY IN PRECIOUSMETALS MARKETS BUYING FUTURES CONTRACTS AS PRICES ROSE THROUGH SIGNIFICANT LEVELS THE RALLY WAS HIGHLY TECHNICAL IN NATURE MR O'NEILL SAID WE HAD A SPURT OF BUYING THAT CAME INTO THE SILVER LATE IN THE DAY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS GRAIN FUTURES PRICES LEAPED HIGHER AS EXPECTED IN THE WAKE OF THE US AGRICULTURE DEPARTMENT'S GLOOMY FINAL REPORT ON THE 199394 US CROP AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR MARCH DELIVERY WERE UP 2575 CENTS TO 7195 A BUSHEL MARCH CORN ROSE 525 CENTS TO 310 A BUSHEL AND MARCH WHEAT CLIMBED 425 CENTS TO 392 A BUSHEL THE USDA ESTIMATED LAST SUMMER'S GRAIN CROPS AT AN ANEMIC 634 BILLION BUSHELS OF CORN 18 BILLION BUSHELS OF SOYBEANS AND 24 BILLION BUSHELS OF WHEAT IN THE NEXT FEW WEEKS TRADERS WILL MONITOR FEED USAGE OF GRAIN WHICH NEEDS TO DROP IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION ENERGY NEWS REPORTS THAT IRAQ CONTINUES TO REFUSE A UNITED NATIONS OFFER OF A ONETIME SALE OF 16 BILLION OF OIL LIFTED FEBRUARY CRUDEOIL FUTURES PRICES BY 18 CENTS A BARREL IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY CRUDE SETTLED AT 1451 A BARREL IRAQ HAS BEEN BANNED FROM WORLD OIL MARKETS SINCE IT INVADED KUWAIT IN AUGUST 1990 BUT THE UN HAS FOR SOME TIME HELD OUT THE POSSIBILITY OF A ONETIME OIL SALE FOR HUMANITARIAN REASONS IRAQ GENERALLY HAS BEEN HOLDING OUT FOR SANCTIONS TO BE LIFTED COMPLETELY OIL MARKETS ALSO CONTINUED TO BE AFFECTED BY THE THREAT THAT MG CORP A BIG FUTURES PLAYER WILL HAVE TO LIQUIDATE LARGE POSITIONS IF A BANK GROUP FAILS TO AGREE TO RESCUE MG'S PARENT METALLGESELLSCHAFT THE GERMAN COMPANY HAS SAID IT COULD LEARN THIS WEEKEND WHETHER IT HAS THE BANK GROUP'S AGREEMENT MEANWHILE US DEPARTMENT OF ENERGY DATA ECHOED AN EARLIER BULLISH INDUSTRY REPORT ON CRUDE INVENTORIES 9401140020 940114 MORGAN GRENFELL TAPS STUART COOK TO HEAD ASIA SECURITIES UNIT SINGAPORE MORGAN GRENFELL GROUP PLC'S ASIAN SUBSIDIARY SAID IT LURED A SENIOR STOCK ANALYST FROM BARINGS PLC'S BARING SECURITIES UNIT TO HEAD ITS REGIONAL SECURITIES OPERATIONS SIGNALING THAT THE HEATED GAME OF MUSICAL CHAIRS IN ASIA'S SECURITIES INDUSTRY CONTINUES MORGAN GRENFELL A UNIT OF DEUTSCHE BANK AG SAID STUART COOK 39 YEARS OLD WILL JOIN THE MORGAN GRENFELL ASIA SECURITIES ARM OF MORGAN GRENFELL ASIA HOLDINGS ON JAN 24 AS CHIEF EXECUTIVE OFFICER THE BRITISH MERCHANT BANK'S ASIAN OPERATIONS IN SINGAPORE INCLUDE INVESTMENT BANKING FUND MANAGEMENT AND SECURITIES RESEARCH AND TRADING MORGAN GRENFELL'S ASIAN SECURITIES OPERATION IS ACTIVE IN SIX MARKETS SINGAPORE HONG KONG MALAYSIA INDONESIA THAILAND AND THE PHILIPPINES THE SECURITIES OPERATION HAS SALES TEAMS IN ASIA AND NEW YORK AND IS SETTING UP AN ASIAN SALES TEAM IN LONDON COLIN BERRY CHIEF EXECUTIVE OF MORGAN GRENFELL ASIA HOLDINGS SAID MR COOK WILL BE RESPONSIBLE FOR ALL SECURITIES OPERATIONS AT MORGAN GRENFELL ASIA MR COOK SAID HE WAS ATTRACTED TO MORGAN GRENFELL BY THE OPPORTUNITY TO TAKE ON BROADER RESPONSIBILITIES AND THE CHANCE TO HELP BUILD MORGAN GRENFELL'S ASIAN SECURITIES BUSINESS I DIDN'T THINK THERE WAS ANY PLACE TO GO AT BARINGS MR COOK SAID NOTING THAT BARINGS WAS ALREADY RANKED NO 1 IN THE REGION MR COOK WAS ASIAN REGIONAL RESEARCH DIRECTOR AT BARING SECURITIES IN HONG KONG BARING SECURITIES RANKED NO 1 OVERALL IN 1993 FOR THE THIRD CONSECUTIVE YEAR AMONG ASIAN STOCK BROKERAGE FIRMS IN ASIAMONEY MAGAZINE'S ANNUAL POLL OF INSTITUTIONAL INVESTORS MR COOK DECLINED TO COMMENT IN DETAIL ON HIS SALARY AT MORGAN GRENFELL I THINK IT'S A VERY REASONABLE PACKAGE HE SAID MORGAN GRENFELL IS WELLESTABLISHED IN SINGAPORE AND HAS BEEN EXPANDING IN HONG KONG BUT IT ISN'T AS BIG A PLAYER ACROSS THE REGION AS SOME OTHER FIRMS INCLUDING BARING SECURITIES 9401140019 940114 PEPPERAND SALT AS A MINOR EDUCATIONAL CORRECTION BY PLAYERS SIXFEETSIX PUT ALL YOUR FAITH IN APPEARANCES AND YOU'LL SOMEDAY FIND YOUR WORLD IS COMING APART AT THE SEAMS 9401140018 940114 PRUDENTIAL INSURANCE IS SEEN AS SOLID AS A ROCK DESPITE CONTINUING SCANDAL AT BROKERAGE UNIT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE MONTHS OF LITIGATION AND A BARRAGE OF DAMAGING HEADLINES ABOUT ITS BROKERAGE ARM FINANCIAL EXPERTS SAY PRUDENTIAL INSURANCE CO OF AMERICA ONE OF THE LARGEST FINANCIAL INSTITUTIONS IN THE COUNTRY IS STRONG ENOUGH TO ABSORB THE DRUBBING ANALYSTS SAY THAT ON A PURELY FINANCIAL BASIS IT'S HARD TO CONCEIVE OF A SCENARIO RELATED TO THE CONTINUING SCANDAL AT PRUDENTIAL SECURITIES INC THAT WOULD TOPPLE PRUDENTIAL INSURANCE THE COMPANY IS SIMPLY TOO STRONG AND TOO IMPORTANT PRUDENTIAL INSURANCE HAS 200 BILLION IN ASSETS AND ANNUAL REVENUE OF ABOUT 45 BILLION OF WHICH PRUDENTIAL SECURITIES ACCOUNTS FOR ABOUT 8 IT HAS CAPITAL AS MEASURED BY INSURANCE REGULATORS OF NEARLY 13 BILLION IN THE INSURANCE WORLD ONLY THE ARGUABLY OVERCAPITALIZED STATE FARM MUTUAL AUTOMOBILE INSURANCE CO HAS MORE AS FOR EARNINGS THE COMPANY A MUTUAL INSURER THAT IS OWNED BY ITS POLICYHOLDERS RATHER THAN STOCKHOLDERS MADE ABOUT 1 BILLION LAST YEAR SAID PRUDENTIAL INSURANCE CHIEF FINANCIAL OFFICER EUGENE O'HARA DESPITE NEWS REPORTS ABOUT POSSIBLE FRAUD AT PRUDENTIAL SECURITIES LIFEINSURANCE SALES AT PRUDENTIAL INSURANCE ROSE 26 LAST YEAR AND ANNUITY SALES ROSE 17 THE COMPANY SAYS OF COURSE THE MAJOR RATINGS AGENCIES ARE KEEPING A CLOSE WATCH ON DEVELOPMENTS AT PRUDENTIAL SECURITIES AND TRYING TO ASSESS HOW THEY WILL AFFECT THE INSURANCE COMPANY AM BEST CO HAS PUT PRUDENTIAL INSURANCE'S RATING ON REVIEW PARTLY BECAUSE OF THE SCANDAL THE AGENCY NOW RATES PRUDENTIAL DOUBLEAPLUS ITS HIGHEST RATING BUT IS TRYING TO DETERMINE WHAT EFFECT THE CONTINUING LEGAL ACTIONS AND NEGATIVE PUBLICITY WILL HAVE ON FUTURE MARKETING ACTIVITIES AND EXISTING BUSINESS MOODY'S INVESTORS SERVICE INC SAYS THAT IT IS WATCHING THE REPERCUSSIONS AND THAT IT LIKE PRUDENTIAL INSURANCE ITSELF IS ALSO REVIEWING MONTHLY SALES FIGURES MOODY'S NOW RATES PRUDENTIAL DOUBLEA2 ONE OF ITS HIGHEST RATINGS VIRTUALLY ALL PARTS OF THE COMPANY HAD THE BEST YEAR THEY'VE EVER HAD SAID MOODY'S ANALYST ROBERT RIEGEL HE SAID THE TOTAL LOSSES FOR PRUDENTIAL SECURITIES NOW ABOUT 800 MILLION WOULD HAVE TO GO CONSIDERABLY HIGHER BEFORE MOODY'S EVEN CONSIDERED LOWERING ITS RATING IN ANY EVENT PRUDENTIAL INSURANCE CUSTOMERS INTERVIEWED FOR THIS ARTICLE SAY THEY AREN'T WORRIED FOR EXAMPLE SUZANNE BOWMAN INSURANCE ADMINISTRATOR FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS ONE OF PRUDENTIAL'S LARGEST HEALTHINSURANCE CLIENTS SAYS SHE IS MORE INTERESTED IN THE INSURER'S FINANCIAL STRENGTH AND ITS ABILITY TO SERVICE CLAIMS I'VE HAD ONLY ONE CLIENT WHO WAS ACTUALLY INFLUENCED BY THIS SAID MURRAY BECKER A TEANECK NJ CONSULTANT WHO ADVISES INVESTORS ON GUARANTEED INVESTMENT CONTRACTS BECAUSE OF PRUDENTIAL INSURANCE'S EARNINGS POWER AS WELL AS THE EARNINGS POWER OF PRUDENTIAL SECURITIES ITSELF THE FINANCIAL IMPACT OF THE AFFAIR ON THE INSURANCE COMPANY HAS SO FAR BEEN NEGLIGIBLE INDEED THE BROKERAGE UNIT HAS FOOTED THE BILL ITSELF IN 1991 PRUDENTIAL INSURANCE PUMPED 215 MILLION INTO PRUDENTIAL SECURITIES TO HELP SETTLE INVESTOR CLAIMS BUT PRUDENTIAL SECURITIES PAID IT BACK THREE MONTHS LATER IN THE FORM OF A DIVIDEND MR O'HARA SAID LAST YEAR PRUDENTIAL SECURITIES AGREED TO SETTLE STATE AND FEDERAL SECURITIESLAW VIOLATIONS BY PAYING 371 MILLION THE SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS CALLED FOR MOST OF THE MONEY TO GO TO INVESTORS AGAIN PRUDENTIAL SECURITIES PAID THE BILL ITSELF PRUDENTIAL SECURITIES SHOULD HAVE RESOURCES TO MEET NEW OBLIGATIONS DESPITE LOSSES TO SETTLE FRAUD ALLEGATIONS PRUDENTIAL SECURITIES SAID YESTERDAY THAT IT EARNED 145 MILLION IN 1993 OF COURSE MATTERS COULD ALWAYS GET WORSE FOR PRUDENTIAL INSURANCE FOR ONE THING LAST YEAR'S AGREEMENT WITH SECURITIES REGULATORS IS OPENENDED IF INVESTORS PROVE THEY DESERVE MORE MONEY COURTS COULD FORCE PRUDENTIAL SECURITIES TO ANTE UP AGAIN AND IF THE SECURITIES FIRM DIDN'T HAVE THE MONEY IT COULD TURN TO PRUDENTIAL INSURANCE FOR AN INVESTMENT BUT ANY INFUSIONS FROM THE INSURANCE COMPANY WOULD BE VOLUNTARY PRUDENTIAL INSURANCE IS TECHNICALLY SHIELDED FROM LIABILITY BECAUSE IT OWNS PRUDENTIAL SECURITIES AS A STOCKHOLDER ALBEIT THE ONLY ONE IF THE LOSSES AT PRUDENTIAL SECURITIES EVER BECAME OVERWHELMING PRUDENTIAL INSURANCE COULD SIMPLY REFUSE TO MAKE A CAPITAL INVESTMENT AND LET THE BROKERAGE UNIT FAIL TO GET AT THE DEEP POCKETS OF PRUDENTIAL INSURANCE INVESTORS WOULD HAVE TO PROVE THE INSURANCE COMPANY NOT JUST ITS BROKERAGE HOUSE PARTICIPATED IN FRAUD PLAINTIFF LAWYERS HAVE TURNED UP ONLY THE SCANTIEST EVIDENCE OF THAT SHOULD WORSE COME TO WORST AND PRUDENTIAL SECURITIES FAIL EVEN THAT WOULDN'T BRING DOWN PRUDENTIAL INSURANCE EXPERTS SAY IT WOULD BE AN EMBARRASSMENT FOR PRUDENTIAL INSURANCE BUT ONE IT COULD SURVIVE THE INSURER PAID ABOUT 385 MILLION WHEN IT BOUGHT THE BROKERAGE HOUSE IN 1981 THE COMPANY NOW VALUES ITS INVESTMENT IN THE UNIT AT 850 MILLION WRITING OFF THE ENTIRE AMOUNT WOULD EQUAL LESS THAN A YEAR'S PROFIT PRUDENTIAL INSURANCE HAS SURVIVED WORSE IN 1992 THE COMPANY LOST 940 MILLION ON HURRICANE ANDREW AND STILL MADE MONEY FOR THE YEAR A FINAL QUESTION HANGING OVER PRUDENTIAL INSURANCE HOWEVER IS WHAT HAPPENS IF THE COMPANY IS NAMED IN A CRIMINAL INDICTMENT THE US ATTORNEY'S OFFICE IN MANHATTAN IS INVESTIGATING NOT ONLY PRUDENTIAL SECURITIES BUT ALSO THE ROLE IN THE AFFAIR PLAYED BY THE INSURANCE COMPANY ALTHOUGH PRUDENTIAL INSURANCE AND PRUDENTIAL SECURITIES DISCOUNT THE LIKELIHOOD OF AN INDICTMENT IF IT WERE TO HAPPEN STATE REGULATORS COULD SUSPEND OR EVEN REVOKE THE COMPANY'S ABILITY TO SELL INSURANCE AN EVENT THAT COULD PUT PRUDENTIAL INSURANCE OUT OF BUSINESS BUT REGULATORS ARE UNLIKELY TO TAKE SUCH HARSH ACTION BECAUSE THEY HAVE THEIR OWN INTERESTS IN KEEPING PRUDENTIAL INSURANCE ALIVE NOT ONLY WOULD A FAILURE OF THE INSURER PUT 102000 EMPLOYEES ON THE STREET BUT IT WOULD DISRUPT THE LIVES OF THE COMPANY'S 50 MILLION CUSTOMERS ONE IN FIVE AMERICANS INSURANCE REGULATORS ARE INTERESTED 99 IN INSURANCECOMPANY SOLVENCY AND ONLY 1 IN INSURANCECOMPANY INTEGRITY SAID EUGENE ANDERSON AN INSURANCE ATTORNEY WITH ANDERSON KILL OLICK & OLSHINKY 9401140017 940114 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS SO SAYS TED LEVINE ONCE THE NO 2 ENFORCER AT THE SECURITIES AND EXCHANGE COMMISSION AND NOW THE TOP LAWYER INSIDE PAINEWEBBER GROUP INC MR LEVINE IS ONE OF A NEW BREED OF LAWYER SIGNING UP AT WALL STREET FIRMS AS CONTINUING SCANDALS AND REGULATORY CRACKDOWNS FORCE THE INDUSTRY TO RECOGNIZE THAT IT NEEDS TO POLICE ITSELF BETTER IN THE SIX MONTHS SINCE HIS ARRIVAL IN PAINEWEBBER'S EXECUTIVE OFFICES MR LEVINE ALREADY HAS IMPLEMENTED A SERIES OF MEASURES DESIGNED TO KEEP THE BIG BROKERAGE HOUSE HIT SOMEWHAT WORSE THAN COMPETITORS BY RECENT CUSTOMER LAWSUITS OUT OF FURTHER TROUBLE AMONG HIS BIGGEST CHANGES SO FAR ESTABLISHING A DISPUTERESOLUTION SYSTEM TO SETTLE TOUGH CASES EARLY AND PLACING THE LEGAL DEPARTMENT IN CHARGE OF THE EMPLOYEE GROUP THAT HANDLES SALESPRACTICE COMPLAINTS IN THE PAST THE COMPLAINT STAFF CONSULTED WITH LAWYERS ONLY ON AN ADHOC BASIS TO MAKE THE NEW SYSTEM WORK MR LEVINE HAS SOUGHT AND RECEIVED AUTHORIZATION TO ADD AS MANY AS 20 LAWYERS TO HIS STAFF WHICH CURRENTLY NUMBERS ABOUT 40 HE ALSO IS PLANNING TO ESTABLISH A CONFIDENTIAL HOT LINE TO THE LEGAL DEPARTMENT FOR EMPLOYEES WHO SEEK TO REPORT SUSPICIOUS ACTIVITY SECURITIES FIRMS ROUTINELY ARE SUED BY CUSTOMERS WITH COMPLAINTS OF VARYING MERIT AND SERIOUSNESS MR LEVINE'S GOAL IS AN ENVIRONMENT IN WHICH ANY WRONGED CUSTOMERS ARE READILY COMPENSATED THIS APPROACH HE HOPES WILL CUT THE NUMBER OF PAINEWEBBER CASES GOING TO ARBITRATION BY ROUGHLY 30 OVER THE NEXT YEAR AND REDUCE LONGTERM LEGAL COSTS THE MOVES MARK A BOLD DEPARTURE FROM THE TRADITIONAL IMAGE OF A BROKERAGE FIRM'S TOP LEGAL OFFICER AS A MOSTLY PASSIVE CLERK AT WORST WALL STREET'S INHOUSE LAWYERS HAVE BEEN WATERCARRIERS FOR MANAGEMENT RATHER THAN DEFENDERS OF THEIR TRUE CLIENT THE FIRMS THEMSELVES AT BEST THEY HAVE BEEN WELLMEANING BUT GENERALLY POWERLESS FUNCTIONARIES BROUGHT INTO THE LOOP ONLY AFTER A CRISIS HAS DEVELOPED TYPICALLY SECURITIESINDUSTRY STAFF LAWYERS HAVE COME UP THROUGH COMPANY RANKS WHICH CAN GIVE THEM A PROVINCIAL OUTLOOK BY CONTRAST THE 49YEAROLD MR LEVINE HAS BEEN SOMETHING OF A WORLD CITIZEN AS LEAST AS FAR AS SECURITIES ARE CONCERNED AFTER DEPARTING HIS POST AS ASSOCIATE DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION IN 1984 HE SPENT NEARLY A DECADE AS A PARTNER AT THE ELITE WASHINGTON LAW FIRM WILMER CUTLER & PICKERING IN ADDITION TO NEARLY ALL OF THE BIGGEST BROKERAGE HOUSES BUT NOT PAINEWEBBER AS IT HAPPENS HIS CLIENTS INCLUDED IVAN BOESKY MR LEVINE'S ARRIVAL AT PAINEWEBBER COMES AS THE SECURITIES INDUSTRY IS EXPERIENCING GROWTH ON THE BOTTOM LINE BUT TURMOIL IN THE EXECUTIVE SUITE AND ESPECIALLY IN THE LAW DEPARTMENT JUST OVER A YEAR AGO THE SEC'S REPORT ON THE SALOMON INC TREASURYAUCTION SCANDAL SOUNDED A WAKEUP CALL TO INHOUSE ATTORNEYS AMONG OTHER THINGS THE REPORT SINGLED OUT DONALD M FEUERSTEIN SALOMON'S CHIEF LEGAL COUNSEL FOR FAILING TO ORDER AN INTERNAL INVESTIGATION INTO THE FIRM'S SUBMISSION OF FALSE TREASURY BIDS MR FEUERSTEIN FORCED TO RESIGN AFTER THE 1991 SCANDAL FACED NO LEGAL ACTION BY THE AGENCY AND IN A SUDDEN SHIFT TWO WEEKS AGO PRUDENTIAL SECURITIES INC RELIEVED ITS GENERAL COUNSEL LOREN SCHECHTER OF HIS LEGAL DUTIES CIVIL AND CRIMINAL AUTHORITIES ARE INVESTIGATING WHAT ROLE THE FIRM'S LEGAL DEPARTMENT PLAYED IN REVIEWING AND APPROVING DOCUMENTS USED IN SELLING LIMITED PARTNERSHIPS PEOPLE FAMILIAR WITH THE SITUATION SAY THE SEC IS LOOKING INTO WHETHER PRUDENTIAL MISLED INVESTORS ABOUT THE RISKS AND RETURNS ON 8 BILLION OF THE PARTNERSHIPS IN THE 1980S BOTH FIRMS HAVE REACHED OUTSIDE OF WALL STREET IN THEIR SEARCH FOR NEW LEGAL OFFICERS SALOMON PICKED ROBERT MUNDHEIM FORMERLY COCHAIRMAN OF FRIED FRANK HARRIS SHRIVER & JACOBSON AND BRIEFLY A SPECIAL COUNSEL TO THE SEC PRUDENTIAL TEMPORARILY FILLED ITS VACANCY WITH LEE SPENCER WHO LIKE MR LEVINE IS A FORMER SEC OFFICIAL WHO HAS RECENTLY PRACTICED IN A LAW FIRM MR LEVINE IS KNOWN NOT ONLY FOR DEFENDING HIS BROKERAGEFIRM CLIENTS IN ADVERSARY SETTINGS BUT ALSO FOR COUNSELING THEM ON HOW TO AVOID PROBLEMS SOME CRITICS SAY HE CAN BE AGGRESSIVE AND EVEN ABRASIVE BUT OTHERS SEE HIS BULLDOG TENACITY AS A VIRTUE WILLIAM MCLUCAS CHIEF OF THE SEC'S ENFORCEMENT DIVISION SAYS MR LEVINE IS CONSIDERED TOUGH COMPETITION BY THOSE AT THE AGENCY AND HARVEY PITT A LEADING MEMBER OF THE SECURITIES BAR AND A PARTNER AT FRIED FRANK SAYS MR LEVINE HAS MORE PRACTICAL SKILLS IN DEALING WITH THE SECURITIES INDUSTRY THAN ANY OTHER LAWYER HE WILL NEED THEM ABOUT TWO YEARS AGO PAINEWEBBER BEGAN DEVELOPING A REPUTATION FOR HAVING MESSIER SALES PRACTICES THAN MANY OTHER FIRMS ACCORDING TO THE SECURITIES ARBITRATION COMMENTATOR A NEWSLETTER THAT TRACKS CASES AGAINST BROKERDEALERS PAINEWEBBER LOST 61 OF CUSTOMERDISPUTE ARBITRATIONS IN THE FIRST HALF OF 1992 THE WORST OF ANY TOP10 BROKERAGE HOUSE A SERIES OF HIGHPROFILE DISPUTES WITH CUSTOMERS THEN TOOK A FINANCIAL AND PUBLICRELATIONS TOLL FROM JULY 1992 TO JULY 1993 PAINEWEBBER WAS ORDERED TO PAY A TOTAL OF 164 MILLION IN ITS FOUR LARGEST ARBITRATION AWARDS ALONE REPORTEDLY MORE THAN ANY OTHER TOP10 FIRM WAS ORDERED TO PAY IN TOTAL ARBITRATION AWARDS DURING THE SAME PERIOD IN PART PAINEWEBBER'S TROUBLE MAY HAVE BEEN THAT IT PURSUED MORE HARDTODEFEND CASES TO ARBITRATION INSTEAD OF SETTLING BEFOREHAND THE FIRM'S CHAIRMAN AND CHIEF EXECUTIVE DONALD MARRON WAS SAID TO HATE GIVING UP WITHOUT A FIGHT BUT MR MARRON PRIVATELY HAS TOLD COLLEAGUES HE WANTS TO CUT THE FIRM'S DOCKET OF CUSTOMER ARBITRATIONS AT DINNER ABOUT A YEAR AGO MR MARRON'S FRIEND MARTIN LIPTON THE TAKEOVER LAWYER SUGGESTED THE EXECUTIVE CALL ON MR LEVINE THE MANDATE WAS CLEAR MR LEVINE SAYS WE WANT TO HAVE THE BEST LEGAL AND COMPLIANCE SYSTEM ON WALL STREET 9401140016 940114 MARKETING & MEDIA REUTERS TO EXPAND IN US BY BUYING QUOTRON STOCKDATA UNIT FROM CITICORP BY WALL STREET JOURNAL REPORTERS GLENN WHITNEY IN LONDON AND STEVEN LIPIN AND MEG COX IN NEW YORK REUTERS HOLDINGS PLC IS MOVING TO EXPAND DRAMATICALLY IN THE US WITH ITS AGREEMENT IN PRINCIPLE TO ACQUIRE QUOTRON'S ELECTRONIC STOCKPRICE DATA BUSINESS FROM CITICORP REUTERS WHICH SELLS ELECTRONIC NEWS AND FINANCIALTRADING SERVICES IS ALREADY THE LARGEST GLOBAL PROVIDER OF FOREIGNEXCHANGE DATA AND AUTOMATED CURRENCY DEALING THE QUOTRON ACQUISITION WOULD MAKE IT THE WORLD'S LEADER IN PROVIDING STOCKPRICE DATA AS WELL ANALYSTS SAY AND COULD PUT PRESSURE ON REUTERS RIVALS IN THE ELECTRONIC FINANCIALINFORMATION BUSINESS ALTHOUGH QUOTRON HAS LONG BEEN A FINANCIAL HEADACHE FOR CITICORP WHICH HAS BEEN SEEKING TO SELL IT THE BUSINESS WILL STRENGTHEN LONDONBASED REUTERS IN A REGION WHERE IT HAS TRADITIONALLY BEEN WEAK THIS ACQUISITION LOOKS SET TO TURN REUTERS FROM AN ALSORAN IN THE US TO A CLEAR MARKET LEADER IN STOCKPRICE DATA SAID ALISTAIR SMELLIE AN ANALYST AT LEHMAN BROTHERS INTERNATIONAL LTD IN LONDON THEY'VE LONG TARGETED THE US EQUITY MARKET FOR GROWTH AND NOW THEY'VE FINALLY DONE SOMETHING DEFINITIVE ABOUT IT ALTHOUGH CITICORP AND REUTERS WOULD NOT DISCLOSE THE PRICE REUTERS WILL PAY FOR QUOTRON'S MARKETDATA SERVICES IT IS BELIEVED TO BE MINIMAL IN FACT REUTERS SAID CITICORP WOULD PAY FOR CERTAIN OPERATING COSTS ASSOCIATED WITH CLOSING THE DEAL CITICORP HAS BEEN TRYING FOR SOME TIME TO SELL QUOTRON WHICH HAS ABOUT 45000 INFORMATION SCREENS IN THE US DESPITE ITS WELLKNOWN NAME IN THE SECURITIES INDUSTRY QUOTRON HAS BEEN AN ALBATROSS SINCE CITICORP BOUGHT IT WITH MUCH FANFARE IN 1986 FOR ABOUT 630 MILLION IT WAS A COMPONENT OF CHAIRMAN JOHN S REED'S PLAN TO TURN CITICORP INTO A FULLSERVICE GLOBAL FINANCIALSERVICES COMPANY A PLAN LONG SINCE JETTISONED A QUOTRON SPOKESMAN ACKNOWLEDGED THAT THE BUSINESS HAS BEEN LOSING MARKET SHARE IN THE PAST TWO TO THREE YEARS BUT HE WOULDN'T GIVE DETAILS THE PRESENCE OF REUTERS SEEMS LIKELY TO REASSURE CURRENT CUSTOMERS FUNDAMENTALLY IT MAKES QUOTRON STRONG AGAIN SAID DAVID LONGOBARDI AN EXECUTIVE EDITOR OF INSIDE MARKET DATA A NEW YORK NEWSLETTER COVERING THE MARKET DATA INDUSTRY IT GIVES THEM A DEEPPOCKETED PARENT THE DEAL WHICH IS SUBJECT TO REGULATORY APPROVAL AND THE SIGNING OF A DEFINITIVE AGREEMENT WOULD INCREASE REUTERS'S SHARE OF US MARKET FOR STOCKPRICE DATA TO ABOUT 30 FROM ONLY 3 THE PURCHASE WOULD ALSO GIVE REUTERS THE TOP POSITION GLOBALLY IN STOCKPRICE DATA WITH ABOUT ONEQUARTER OF THE MARKET AHEAD OF AUTOMATIC DATA PROCESSING INC ROSELAND NJ WHICH HAS AN ESTIMATED 20 SHARE ANALYSTS SPECULATED THAT REUTERS COULD USE QUOTRON TO SELL ITS OTHER INFORMATION AND AUTOMATEDTRADING SERVICES TO US STOCK BROKERAGE FIRMS A MARKET IT HASN'T PENETRATED AS MUCH AS IT WOULD LIKE ERIC PHILO AN ANALYST WITH GOLDMAN SACHS & CO IN NEW YORK SAID THE OTHER PLAYERS IN THE MARKET MUST BE WATCHING THIS DEAL VERY CLOSELY ESPECIALLY ADP ONE OF THE BIGGEST COMPETITORS THIS IS ALREADY A MATURE COMPETITIVE BUSINESS AND THIS WILL MAKE IT TOUGHER YET MR PHILO SAID HE BELIEVES ADP CURRENTLY HAS OPERATING MARGINS OF ABOUT 6 OR 7 LESS AFFECTED ANALYSTS SAY WILL BE SUCH FINANCIALINFORMATION PROVIDERS AS BLOOMBERG LP'S BLOOMBERG FINANCIAL MARKETS AND DOW JONES & CO'S TELERATE BLOOMBERG'S TERMINALS PROVIDE NOT ONLY RAW QUOTES BUT ALSO INTERPRETATIONS AND NEWS WHILE TELERATE IS A MUCH BIGGER SUPPLIER OF BONDMARKET INFORMATION THAN STOCK DATA BLOOMBERG EXECUTIVES DECLINED TO COMMENT ON THE REUTERSQUOTRON DEAL A SPOKESMAN FOR DOW JONES SAID WE AREN'T IN THIS BUSINESS OF SELLING EQUITIES QUOTES TO THE BROKERAGE INDUSTRY AND WE WEREN'T INTERESTED IN BUYING QUOTRON WHICH WAS SHOPPED TO US AND EVERYBODY ELSE FOR A LONG TIME DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL AND BARRON'S QUOTRON WAS A CLEAR LEADER IN THIS BUSINESS JUST A FEW YEARS BACK BUT WE'VE PASSED THEM TO BECOME THE MARKET LEADER SAID ARTHUR WEINBACH EXECUTIVE VICE PRESIDENT OF ADP WE WERE THE FIRST TO ADD INTELLIGENT WORKSTATIONS TERMINALS THAT DO EVERYTHING A PC DOES WHEN QUOTRON WAS STILL SELLING DUMB TERMINALS THAT ONLY LIST STOCK QUOTES WE BELIEVE WE ARE STILL MORE SOPHISTICATED AND OUR SERVICE IS BETTER HE ADDED ADP WHICH ALSO IS A MAJOR PLAYER IN THE MARKET FOR BUSINESS PAYROLL SERVICES SAYS IT HAS ABOUT 84000 TERMINALS INSTALLED IN BROKERAGE HOUSES MR PHILO THE GOLDMAN SACHS ANALYST ESTIMATES THAT SOME 180000 SUCH TERMINALS ARE CURRENTLY INSTALLED IN THE US MARKET OVERALL INCLUDING BROKERAGE HOUSES CHRIS MUNRO AN ANALYST AT HOARE GOVETT INVESTMENT RESEARCH LTD SAID THE QUOTRON ACQUISITION SHOULD HELP REUTERS FURTHER PENETRATE THE MARKET FOR AUTOMATED EQUITIES DEALING THROUGH ITS INSTINET SUBSIDIARY WHICH SERVES INSTITUTIONAL INVESTORS INSTINET WAS BOUGHT BY REUTERS IN 1986 AND REPORTED REVENUE OF 731 MILLION FOR THE FIRST HALF OF 1993 COMPARED WITH 42 MILLION A YEAR EARLIER THE REUTERS MOVE WAS MADE THROUGH THE COMPANY'S WHOLLY OWNED REUTERS AMERICA HOLDINGS INC UNIT A REUTERS SPOKESMAN DECLINED TO DISCUSS THE COMPANY'S STRATEGY FOR THE QUOTRON BUSINESS UNTIL THE DEAL IS FINAL IN TRADING IN LONDON REUTERS SHARES CLOSED AT 1855 2789 UP 30 PENCE THE SALE DOESN'T INCLUDE QUOTRON'S FOREIGNEXCHANGE BUSINESS KNOW AS FX TRADER WHICH CITICORP SAID IT WILL RETAIN ADP ACQUIRED QUOTRON'S INTERNATIONAL EQUITIES BUSINESS IN EUROPE AND THE FAR EAST AND ITS SECURITIES INDUSTRY SOFTWARE CORP UNIT A YEAR AGO REUTERS HAS BEEN CASHRICH FOR THE PAST SEVERAL YEARS AT THE END OF JULY IT REPURCHASED 584 OF ITS SHARES USING ABOUT HALF THE ROUGHLY 700 MILLION 105 BILLION IT HAD IN SURPLUS CASH 9401140015 940114 BUSINESS BRIEF BEAR STEARNS EARNINGS MORE THAN DOUBLED IN FISCAL 2ND QUARTER NEW YORK DRIVEN BY TREMENDOUS GROWTH IN ITS UNDERWRITING BUSINESS BEAR STEARNS COS' FISCAL SECONDQUARTER EARNINGS MORE THAN DOUBLED FOR THE QUARTER ENDED DEC 31 THE PARENT OF BROKERAGE FIRM BEAR STEARNS & CO REPORTED NET INCOME OF 1348 MILLION OR 105 A SHARE UP FROM 643 MILLION OR 52 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 58 TO 1 BILLION FROM 6326 MILLION BEAR STEARNS'S SECONDQUARTER PERFORMANCE OUTSTRIPPED THE AVERAGE ANALYST'S ESTIMATE OF ABOUT 78 CENTS A SHARE INDICATING THAT THE THREEYEAROLD BROKERAGE INDUSTRY EARNINGS BINGE ISN'T OVER YET BEAR STEARNS BOLSTERED THAT POINT BY SHOWING STRONG GAINS AGAINST ITS MOST RECENT QUARTER IN THE FISCAL FIRST QUARTER ENDED SEPT 30 THE COMPANY HAD NET INCOME OF 1043 MILLION OR 81 CENTS A SHARE ON REVENUE OF 7717 MILLION BEAR STEARNS'S STRONGEST SECONDQUARTER GAINS CAME IN INVESTMENT BANKING WHERE REVENUE SURGED BY 180 ANALYSTS SAID MORE THAN 80 OF THE INVESTMENT BANKING REVENUE STEMMED FROM A FLURRY OF DEBT AND EQUITY OFFERINGS THEIR UNDERWRITING PERFORMANCE WAS STRONG BUT MORE IMPORTANTLY THEY ARE ALSO GAINING MARKET SHARE IN THAT AREA SAID JOAN S SOLOTAR A DONALDSON LUFKIN & JENRETTE ANALYST BEAR STEARNS REPORTED REVENUE GAINS FROM MOST BUSINESS AREAS IN THE LATEST QUARTER WITH REVENUE FROM TRADING ACTIVITY RISING 58 FROM A YEAR EARLIER THE COMPANY ALSO HIRED ABOUT 250 NEW EMPLOYEES IN THE LATEST QUARTER PRIMARILY FOR NEW OFFICES IN BEIJING AND HONG KONG BEAR STEARNS HAS ABOUT 6800 EMPLOYEES IN LATE NEW YORK STOCK EXCHANGE TRADING BEAR STEARNS WAS QUOTED AT 23875 UP 75 CENTS 9401140014 940114 TORONTO FIRM OFFERS JUNKRATED NOTES IN CANADIAN DOLLARS TORONTO IN WHAT COULD BE THE INITIAL STEP TOWARD CREATING A CANADIAN JUNKBOND MARKET ROGERS CABLESYSTEMS LTD SOLD WHAT IT SAID WAS THE FIRST ISSUE OF HIGHYIELD NOTES DENOMINATED IN CANADIAN DOLLARS THE 300 MILLION CANADIAN DOLLARS US2268 MILION OF 20YEAR 965 NOTES WERE SNAPPED UP QUICKLY BUT MOSTLY BY US RATHER THAN CANADIAN BUYERS ROGERS CABLESYSTEMS BASED IN TORONTO IS CANADA'S LARGEST CABLETELEVISION COMPANY IT IS WHOLLY OWNED BY ROGERS COMMUNICATIONS INC PROCEEDS FROM THE OFFERING WILL BE USED TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES WE HOPE THAT THIS FINANCING WILL MARK THE FIRST STEP IN DEVELOPING A CANADIANDOLLAR HIGHYIELD MARKET SAID GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS COMMUNICATIONS BUT HE SAID IT WILL TAKE TIME TO WIN OVER CANADIAN INSTITUTIONAL INVESTORS JUNK BONDS ARE A TOUGH SELL WITH CANADIAN PENSION FUNDS AND LIFE INSURERS MOST OF WHICH HAVE INTERNAL GUIDELINES THAT PRECLUDE THEM FROM HOLDING DEBT RATED LOWER THAN TRIPLEB ROGERS'S NEW SECURITIES WERE RATED DOUBLEBPLUS BY STANDARD & POOR'S CORP AND BA1 BY MOODY'S INVESTORS SERVICE INC UNDERWRITERS INTEND TO PUSH FOR MORE CANADIAN DOLLAR JUNKBOND ISSUES ROBERT GEMMELL A MANAGING DIRECTOR OF THE CANADIAN SUBSIDIARY OF MERRILL LYNCH & CO SAID THERE ARE AT LEAST 20 CANADIAN ISSUERS THAT COULD BE TEMPTED BY THE SUCCESS OF THE ROGERS ISSUE WHICH MERRILL LYNCH MANAGED FOR CANADIAN COMPANIES ISSUING HIGHYIELD DEBT IN CANADIAN DOLLARS ELIMINATES THE PROBLEMS AND EXPENSE THAT COME WITH SWAPPING US DOLLARDENOMINATED DEBT BACK TO CANADIAN CURRENCY SAID MR SAVAGE ROGERS HAS BEEN A BIG BORROWER IN USDENOMINATED ISSUES IN THE PAST 9401140013 940114 LA GEAR EXPECTS TO POST NARROWER LOSS FOR FISCAL 4TH QUARTER SANTA MONICA CALIF LA GEAR INC ESTIMATED A LOSS FROM CONTINUING OPERATIONS OF AS MUCH AS 16 MILLION FOR THE FOURTH QUARTER ENDED NOV 30 ADDING THAT EXCESS INVENTORIES CONTINUE TO DEPRESS EARNINGS FOR FISCAL 1993 THE FOOTWEAR COMPANY SAID IT EXPECTS TO REPORT AN OVERALL LOSS OF AS MUCH AS 412 MILLION OR 180 A SHARE DESPITE A ONETIME CREDIT OF 27 MILLION AND CONTINUING RESTRUCTURING EFFORTS DESIGNED TO CUT COSTS IMPROVE MARGINS AND REDUCE EMPLOYEES IN FISCAL 1992 LA GEAR HAD A LOSS OF 72 MILLION OR 376 A SHARE INCLUDING A CHARGE OF MORE THAN 35 MILLION FOR RESTRUCTURING AND SETTLEMENT OF THREE SHAREHOLDER LAWSUITS FOR THE 1992 FOURTH QUARTER LA GEAR HAD A LOSS OF 298 MILLION OR 139 A SHARE THE ANTICIPATED 1993 LOSS COMES DESPITE VARIOUS EFFORTS BY THE COMPANY TO IMPROVE INTERNATIONAL RESULTS LA GEAR ACQUIRED ITS PREVIOUSLY INDEPENDENT DISTRIBUTORS IN SEVERAL EUROPEAN COUNTRIES AND LAST MONTH IT MOVED TO SET UP ITS OWN DISTRIBUTION SYSTEM IN THE FAR EAST IN OCTOBER THE COMPANY POSTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS BUT IT INDICATED AT THE TIME THAT LOWERTHANEXPECTED PROFIT MARGINS AND CHANGING CONSUMER PREFERENCES WERE LIKELY TO AFFECT FUTURE FINANCIAL RESULTS THE COMPANY ATTRIBUTED ITS SMALLER ANTICIPATED LOSS FOR FISCAL 1993 TO STRONG CHILDREN'S SHOE SALES IMPROVED AVERAGE PRICES AND REDUCED ADMINISTRATIVE COSTS TO TRIM EXCESS INVENTORY OF ABOUT 106 MILLION AT FISCAL YEAR END THE COMPANY SAID IT MAY INCREASE SALES THROUGH DISCOUNT OUTLETS EVEN THOUGH THAT WOULD REDUCE GROSS PROFIT MARGINS INVENTORY WAS 62 MILLION A YEAR EARLIER 9401140012 940114 HAGGAR WILL MAKE BOYS' PANTS IN COTTON RESISTANT TO WRINKLES DALLAS HAGGAR CORP RIDING ONE OF THE HOTTEST TRENDS IN APPAREL SAID IT WILL MANUFACTURE A NEW LINE OF BOYS' PANTS IN ITS WRINKLERESISTANT COTTON MATERIAL THE NEW LINE WHICH HAGGAR EXPECTS TO HAVE IN STORES FOR THE BACKTOSCHOOL MARKET THIS SUMMER MARKS THE COMPANY'S RETURN TO BOYS' WEAR AFTER A THREEDECADE ABSENCE THE MEN'S APPAREL MAKER ALSO SAID IT IS LAUNCHING A LINE OF WRINKLERESISTANT COTTON SPORTS SHIRTS TO SUPPLEMENT ITS PANTS HAGGAR SHARES CLOSED YESTERDAY AT 2650 UNCHANGED IN NASDAQ STOCK MARKET TRADING ANALYSTS SAID HAGGAR IS A LEADER IN THIS APPAREL NICHE AND THAT MANY RIVALS SUCH AS LEVI STRAUSS & CO ARE SCRAMBLING TO CATCH UP IT'S GOING TO MOVE INTO EVERY CATEGORY SAID BRENDA GALL AN ANALYST AT MERRILL LYNCH & CO BUT HAGGAR IS AHEAD OF THE GAME FRANK BRACKEN EXECUTIVE VICE PRESIDENT OF THE APPAREL MAKER SAID WE KNOW HOW LONG IT TOOK US TO GET THE TECHNOLOGY STRAIGHT AND THE PRODUCTION UP AND WE THINK WE HAVE AN 18MONTHTOTWOYEAR LEAD HAGGAR AND TO A LESSER EXTENT ITS SMALLER COMPETITOR FARAH INC HAVE ENJOYED SUCCESS MARKETING MEN'S COTTON PANTS THAT ARE TREATED TO RESIST WRINKLING MR BRACKEN SAID THAT SINCE OCTOBER 1992 HAGGAR'S SHARE OF THE MEN'S PANTS MARKET INCREASED TO 15 FROM 2 BASED ENTIRELY ON ITS WRINKLERESISTANT LINE MR BRACKEN SAID HAGGAR SPENT 23 MILLION ADVERTISING THE PANTS IN ITS 1993 FISCAL YEAR WHICH ENDED OCT 1 TREBLING THE COMPANY'S AD SPENDING FROM THE PREVIOUS YEAR WHILE FARAH HAD A PRODUCT ON THE MARKET FIRST IT DIDN'T HAVE THE FINANCIAL ABILITY TO MARKET IT AS AGGRESSIVELY AS HAGGAR SAID EDWARD F JOHNSON DIRECTOR OF JOHNSON REDBOOK SERVICE 9401140011 940114 LABORLED PLAN TO BUY OUT UNITED AIR IS OPPOSED BY SOME PILOT UNION MEMBERS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO AS ONE VITAL RATIFICATION VOTE NEARS IN THE PROPOSED LABORLED BUYOUT OF UNITED AIRLINES EFFORTS OF THE PILOT UNION'S LEADERSHIP TO SELL THE DEAL TO MEMBERS ARE RUNNING INTO SOME UNEXPECTED GRASSROOTS RESISTANCE LEADERS OF THE PILOTS' AND THE MACHINISTS' UNIONS NEGOTIATED THE 5 BILLION BUYOUT AGREEMENT LATE LAST YEAR WITH UAL CORP THE CARRIER'S PARENT COMPANY IN EXCHANGE FOR AN INITIAL STAKE OF 53 OF UAL THE TWO UNIONS AND THOUSANDS OF NONCONTRACT WORKERS OFFERED MORE THAN 45 BILLION IN WAGE AND WORKRULE CONCESSIONS AND AN ADDITIONAL PACKAGE OF CASH PREFERRED STOCK AND NOTES BUT AS PILOT UNION OFFICIALS FANNED OUT ACROSS THE COUNTRY THIS WEEK TO EXPLAIN THE PROPOSAL TO UNITED'S 8000 PILOTS SEVERAL PILOTS RAISED SERIOUS CONCERNS ABOUT THE PROPOSED TRANSACTION IN LETTERS THAT ARE BEING WIDELY CIRCULATED THE AIRLINE'S PILOTS STAND TO GAIN THE LARGEST PROPORTION OF EMPLOYEEOWNED STOCK 462 BUT ALSO FACE THE LARGEST PAY CUT AS A GROUP 157 IT HASN'T BEEN SMOOTH SAILING IN PILOTLAND THIS WEEK SAID ONE UNION ADVISER ONE LETTER FROM A LEADING OFFICIAL OF THE PILOTS' UNION GAVE THE FIRST INDICATION THAT RATIFICATION MIGHT NOT BE A SHOOIN WRITTEN BY DAVE LANDRY THE CHAIRMAN OF UNITED'S PILOTS' LOCAL IN LOS ANGELES THE LETTER ASSAILED SEVERAL PARTS OF THE AGREEMENT AND NOTED THAT RATIFICATION IS BY NO MEANS ASSURED MEANWHILE THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH WILL PUT A VOTE TO ITS MEMBERS LATE THIS MONTH SEEMS MORE SOLIDLY IN FAVOR OF THE PROPOSED DEAL FOR ONE THING ROUGHLY ONEFIFTH OF THE MACHINISTS' MEMBERSHIP 5000 EMPLOYEES WHO WORK FOR A FLIGHT KITCHEN DIVISION THAT IS BEING SOLD ARE LIKELY TO VOTE FOR THE BUYOUT THEY STAND TO RECEIVE SEVERANCE PACKAGES IF THE TRANSACTION IS COMPLETED ALSO THE LEADERS OF THE MACHINISTS UNION LAST WEEK VOTED TO STRONGLY RECOMMEND THAT MEMBERS APPROVE THE DEAL MEMBERS OF THE AIR LINE PILOTS ASSOCIATION DON'T ACTUALLY GET TO RATIFY THE AGREEMENT RATHER IT IS THE UNION'S NATIONAL LEADERS CALLED THE MASTER EXECUTIVE COUNCIL WHO WILL VOTE ON THE DEAL LATE THIS MONTH HOWEVER ONE PURPOSE OF THIS WEEK'S ROADSHOWS IS TO SOUND OUT THE WISHES OF UNITED'S PILOTS THE COUNCIL THEN IS SUPPOSED TO VOTE ACCORDINGLY THE LACK OF DIRECT VOTING STANDARD ALPA PROCEDURE HAS BEGUN TO RANKLE SOME UNITED PILOTS BEFORE NEGOTIATING THE UAL BUYOUT THE MASTER EXECUTIVE COUNCIL NEVER QUIZZED THE RANKANDFILE ABOUT OUR FEELINGS SAID ONE UNITED PILOT IN SEATTLE THE BUYOUT ISN'T VERY POPULAR AND WE'D LIKE TO BE ABLE TO VOTE INDIVIDUALLY IT'S HARD TO SAY JUST HOW WIDESPREAD IS THE OPPOSITION AMONG THE PILOTS UNION OFFICIALS WHO HAVE ATTENDED MEETINGS IN SEVERAL CITIES THIS WEEK SAY THEY HAVE SEEN POCKETS OF RESISTANCE BUT BELIEVE MOST PILOTS GENERALLY ARE SUPPORTIVE THERE ARE A LOT OF MIXED FEELINGS AMONG PILOTS CONCEDED A PILOTS' UNION SPOKESMAN SOME ARE HAPPY WITH THE DEAL SOME AREN'T MR LANDRY THE UNION LEADER IN LOS ANGELES WOULDN'T BE INTERVIEWED BUT HIS LETTER CRITICIZED THE PROPOSED BUYOUT FOR FAILING TO PROVIDE SOCALLED WAGE SNAPBACKS AT THE END OF THE ALMOST SIXYEAR PERIOD COVERED IN THE AGREEMENT PILOTS WOULD HAVE TO RETURN TO THE NEGOTIATING TABLE TO BARGAIN FOR A PAY RAISE OF MORE THAN 157 JUST TO RETURN TO TODAY'S RATES HIS LETTER SAID LAST YEAR UNITED'S PILOTS EARNED AN AVERAGE SALARY OF 114000 ACCORDING TO THE COMPANY HE ALSO WROTE THAT BECAUSE THE AGREEMENT ALLOWS RETIRING EMPLOYEES TO SELL THEIR STOCK TO THE PUBLIC THE TOTAL EMPLOYEES' SHARE OF STOCK WOULD BE DILUTED OVER TIME IN OTHER WORDS THE LETTER SAID THE ESOP SELFDESTRUCTS IN ADDITION TO APPROVALS FROM THE PILOTS AND MACHINISTS UNIONS THE UAL BUYOUT REQUIRES SHAREHOLDER CONSENT A DEFINITIVE AGREEMENT IS SET TO BE COMPLETED BY MARCH 15 AND PROXY MATERIALS WILL BE MAILED SOON AFTER MEANWHILE THE ASSOCIATION OF FLIGHT ATTENDANTS THE OTHER BIG UNION AT UNITED SAID IT RECENTLY RECEIVED A PROPOSAL FROM UAL SUGGESTING HOW THE GROUP COULD JOIN THE EMPLOYEE BUYOUT THE FLIGHT ATTENDANTS WHOSE PARTICIPATION ISN'T NECESSARY FOR THE CURRENT TRANSACTION TO CLOSE HAVE BEEN REVIEWING THE PROPOSAL IN MEETINGS THIS WEEK LAST SUMMER THE FLIGHT ATTENDANTS LEFT THE UNION GROUP TRYING TO ACQUIRE MAJORITY CONTROL OF UAL IN A DISPUTE OVER THE AIRLINE'S DECISION TO OPEN A CABINATTENDANT BASE OVERSEAS 9401140010 940114 TECHNOLOGY & HEALTH FDA URGED TO ISSUE WARNING OVER VALVE FOR HEART PATIENTS A WALL STREET JOURNAL NEWS ROUNDUP A CONSUMER HEALTH GROUP URGED THE FOOD AND DRUG ADMINISTRATION TO WARN PATIENTS WITH THE FRACTUREPRONE BJORKSHILEY ARTIFICIAL HEART VALVE THAT THE DEVICE MAY BE FAR MORE DANGEROUS THAN PREVIOUSLY BELIEVED SIDNEY M WOLFE DIRECTOR OF THE PUBLIC CITIZEN HEALTH RESEARCH GROUP WROTE TO FDA COMMISSIONER DAVID KESSLER HIS LETTER CITED FINDINGS BY DUTCH PHYSICIANS THAT THERE ARE EXTREMELY HIGH FAILURE RATES OF THE BJORKSHILEY CONVEXOCONCAVE OR CC VALVES ABOUT 50000 PEOPLE ARE BELIEVED TO HAVE THE VALVE THE DUTCH STUDY DESCRIBED IN A RECENT ISSUE OF THE BRITISH MEDICAL JOURNAL LANCET INVOLVED ONLY 24 VALVES BUT RESEARCHERS SAID PATIENTS WERE RANDOMLY SELECTED IN AN UNBIASED WAY AFTER IT WAS FOUND THAT FOR VARIOUS REASONS THE VALVE SHOULD BE REMOVED THERE HAVE BEEN ALMOST 400 TOTAL FAILURES OF THE DEVICE REPORTED TO THE FDA OF WHICH ABOUT TWOTHIRDS OF THE PATIENTS DIED FINDINGS OF THE STUDY SUGGEST THE POSSIBILITY THAT THE VALVES MAY FRACTURE AT A SIGNIFICANTLY HIGHER RATE THAN REPORTED IN EARLIER STUDIES THIS COULD ALTER CARDIOLOGISTS' VIEWS ABOUT WHETHER THE RISKS OF THE DEVICE OUTWEIGH THE RISKS OF SURGERY TO REMOVE THEM NEW YORKBASED PFIZER INC MAKER OF THE VALVE SAID IN A STATEMENT THAT IT HAS DISCUSSED THE DUTCH FINDINGS WITH THE FDA AND THAT NO CHANGES IN PATIENT CARE WERE RECOMMENDED THE COMPANY WITHDREW THE VALVE FROM THE MARKET IN 1986 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PFIZER COMMON CLOSED AT 6825 OFF 375 CENTS THE LANCET ARTICLE SAID DUTCH DOCTORS SURGICALLY REMOVED 24 VALVES SUBJECTED THEM TO METALLURGICAL ANALYSIS AND FOUND THAT SEVEN HAD A FRACTURE IN ONE OF TWO WIRELIKE LEGS THAT COMPRISE A VALVE PART CALLED A STRUT RESEARCHERS HAVE CONCLUDED THAT SUCH A FAILURE COULD CURTAIL THE FLOW OF BLOOD 9401140009 940114 WORLD MARKETS ASIAN STOCKS FALL FURTHER WITH DEEPEST DIVES IN TAIPEI HONG KONG EUROPE LOGS MORE SLIDES BY CRAIG S SMITH AND JEREMY MARK STAFF REPORTERS OF THE WALL STREET JOURNAL MOST ASIAN STOCK MARKETS CONTINUED TO FALL THURSDAY WITH THE BRUNT OF THE SELLING HITTING TAIPEI WHERE PRICES PLUNGED 59 AND HONG KONG WHERE EQUITIES LOST 5 MANY EUROPEAN MARKETS ALSO TOOK A DRUBBING LONDON STOCKS' DECLINE EXTENDED INTO A SECOND DAY SHARES SLUMPED 2 IN FRANKFURT AND 13 IN PARIS BUT ACROSS ASIA BARGAIN HUNTERS TEMPERED THE DECLINES IN SEVERAL MARKETS AND ANALYSTS PREDICTED SOME WOULD REBOUND TODAY WHEN YOU SEE MARKETS FALL SO FAST YOU EXPECT THEM TO BOUNCE AND BOUNCE HARD SAID PAUL SCHULTE VICE PRESIDENT AT CS FIRST BOSTON HK LTD ANALYSTS AGREED ASIAN MARKETS HAVE BEEN RIPE FOR A SELLOFF AFTER SURGING LAST MONTH BUT BLAMED EMOTION FOR THE SLUMP'S ACCELERATION MR SCHULTE SAID THE HEAVY SELLING ISN'T A FUNCTION OF FUNDAMENTALS IT'S A FUNCTION OF THE HERD MENTALITY TAIPEI SUCCUMBED THURSDAY IN WHAT WAS CONSIDERED A DELAYED REACTION AFTER RESISTING THE SELLING STAMPEDE FOR SEVERAL DAYS THE MARKET IS OFF 88 FROM THE CURRENT RALLY'S PEAK ON JAN 5 MORE THAN 100 STOCKS FELL 7 THE DAILY LIMIT FOR PRICE MOVEMENTS PERMITTED BY THE TAIWAN EXCHANGE THE PANIC SELLING WAS SPURRED FURTHER BY THE RUMORED DEATH LATER DENIED OF THE CHAIRMAN OF FORMOSA PLASTICS GROUP AN INDUSTRIAL CONGLOMERATE SHIPPING STOCKS WERE BADLY HIT WHEN THE TAIWAN GOVERNMENT WOULDN'T BUDGE FROM ITS REFUSAL TO ALLOW DIRECT SHIPPING LINKS WITH CHINA WHICH A TAIWAN OFFICIAL PROPOSED LAST MONTH HELPING TO FUEL BUYING IN THE LATEST RALLY BUT THE TAIPEI MARKET COULD GET A LIFT LATE THURSDAY TAIWAN'S FINANCE MINISTRY SAID 16 BANKS THAT HAVE SET UP IN THE PAST THREE YEARS MAY TRADE SHARES STARTING TOMORROW AND MOST COMPANIES ARE ABOUT TO PAY BONUSES FOR THE LUNAR NEW YEAR A TRADITIONAL MARKETBOOSTING HOLIDAY SOME INTERNATIONAL INVESTORS ALREADY HAVE BEGUN BUYING BACK INTO HONG KONG'S MARKET AND LONDONTRADED SHARES OF HONG KONG COMPANIES THURSDAY'S SELLOFF THE THIRD IN A ROW PUSHED HONG KONG'S LOSS TO ALMOST 17 FROM A JAN 4 PEAK BLUE CHIPS ARE OFF 20 OR MORE FROM THEIR HIGHS CONTINUED RUMORS THAT HONG KONG BANKS WILL TIGHTEN RESIDENTIAL MORTGAGE LENDING KEPT PRESSURE ON PROPERTY STOCKS THE MARKET'S LARGEST SECTOR BUT ANALYSTS DISMISSED THE EFFECT SUCH AN ACTION WOULD HAVE ON THE PROFITABILITY OF PROPERTY COMPANIES INVESTORS ARE SIMPLY LOOKING FOR AN EXCUSE TO UNLOAD SHARES ANALYSTS SAID CS FIRST BOSTON'S MR SCHULTE SAID THE HONG KONG MARKET'S PRICE/EARNINGS RATIO HAS COLLAPSED TO AROUND 15 FROM 18 BEFORE THE SELLING BEGAN THAT MAKES HONG KONG LOOK INEXPENSIVE COMPARED WITH OTHER MARKETS IN THE REGION AND PUTS HONG KONG ON PAR WITH THE US WHERE THE ECONOMY IS GROWING MUCH MORE SLOWLY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 30863 POINTS WEDNESDAY SKIDDED 21662 OR 12 TO 1857726 AS PROFITTAKING SNAPPED A SIXSESSION STREAK OF GAINS IN TRADING FRIDAY THE NIKKEI INDEX ROSE 7851 POINTS TO CLOSE THE MORNING SESSION AT 1865577 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 430 MILLION SHARES DOWN FROM 4511 MILLION SHARES A DAY EARLIER THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1059 POINTS WEDNESDAY SLIPPED 796 TO 150347 SINGAPORE SHARES SKIDDED 29 AS WEAK BUYING TO CORRECT THE EXCESSIVELY OVERSOLD MARKET FAILED AGAIN AND AGAIN AND A FREEFALL WAS PROMPTED BY BOUTS OF FORCED SALES SUCH AS MARGIN CALLS ON POSITIONS BOUGHT ON CREDIT IN KUALA LUMPUR THE MAIN INDEX DIVED 35 FOR THE THIRD CONSECUTIVE LOSS EVEN AFTER A REBOUND FROM THE DAY'S LOWS WHEN BARGAIN HUNTERS DID SOME BUYING IN MANILA SHARES STUMBLED 23 THAT MARKET'S FIFTH STRAIGHT DECLINE IN BANGKOK PRICES RETREATED FOR THE SECOND DAY PLUMMETING 33 IN SYDNEY SHARES FELL HEAVILY ON CONTINUED PROFITTAKING IN SEOUL STOCKS ADVANCED 14 ON RALLIES BY BLUE CHIPS AND ISSUES WITH LOW PRICE/EARNINGS RATIOS THOUGH ONCE AGAIN MORE STOCKS FELL THAN ROSE AS FOR REPORTS THAT FOREIGN FUND MANAGERS HAVE SOURED ON ASIA MR SCHULTE SAID THERE ARE STILL BILLIONS OF DOLLARS IN THE US AND EUROPE WAITING TO GET INTO THESE MARKETS LONDON SHARES ENDED NEAR THE DAY'S LOWS AS THE BRITISH GOVERNMENT WAS EXPECTED TO TEND ECONOMIC RECOVERY CAUTIOUSLY AND STAY TOUGH ON INFLATION DELAYING CUTS IN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11182 DOWN 089 REFLECTING DECREASES IN MARKETS IN ALL THREE REGIONS AMERICAS EUROPE AND ASIA/PACIFIC INDUSTRIAL TECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 99 UP 099 OR 1 WITH ADVANTEST CORP OF JAPAN POSTING A 10 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT 21051 DOWN 2751 OR 12 WITH ASIATIC DEVELOPMENT BHD OF MALAYSIA SLIDING 18 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SHED 120 POINTS TO 33600 NEAR THE SESSION LOW THE FT 30STOCK INDEX ADDED 32 POINTS TO 25774 VOLUME WAS 8962 MILLION SHARES UP FROM 8089 MILLION SHARES A DAY EARLER THE FT 100 HAS LOST 86 POINTS THIS WEEK YESTERDAY STOCKS OPENED STRONGLY ON REPORTS OF GOOD CORPORATE EARNINGS AND CHRISTMAS BUSINESS BUT THE BRITISH POUND'S STRENGTH IN CURRENCY DEALINGS SUGGESTED A LENDINGRATE CUT ISN'T LIKELY SOON WEAKNESS ON WALL STREET ALSO ADDED TO THE GLOOM IN LONDON WHERE THE CURRENT TRADING ACCOUNT CLOSES FRIDAY TIMING THAT GENERALLY PROMPTS PRICE DECLINES FROM SELLING OF HOLDINGS TO SETTLE NEW PURCHASES IN FRANKFURT THE DAX 30STOCK INDEX SANK 4452 POINTS OR 2 TO 216466 THE PLUNGE CAME ON CORPORATE NEWS INCLUDING GROWING UNCERTAINTY ABOUT A MAJOR RESCUE PLAN AND A POOR EARNINGS OUTLOOK IN PARIS THE MARKET TUMBLED 13 AS PRICES CONTINUED THEIR CORRECTION WITH THE DECLINE GAINING SPEED AND BREADTH AS THE FRENCH CENTRAL BANK DECIDED AGAINST CUTTING INTEREST RATES IN STOCKHOLM AFTER A WEAK OPENING STOCKS RALLIED TO END WITH SMALL GAINS IN HEAVY TRADING THE RECOVERY WAS ATTRIBUTED TO A BOOST FOR THE REAL ESTATE AND CONSTRUCTION SECTOR FROM SWEDISH GOVERNMENT ACTION INDICATING A BRIDGE LINKING SWEDEN AND DENMARK WOULD BE APPROVED BUT IN ZURICH EQUITIES TUMBLED 17 ON PROFITTAKING AND IN BRUSSELS SHARES WERE DRIVEN DOWN 11 BY PROFITTAKING JITTERS ABOUT A POTENTIAL BELGIAN POLITICAL CRISIS IN CONNECTION WITH A BRIBERY SCANDAL AND HIGHER INTEREST RATES IN MEXICO CITY STOCKS DROPPED 12 ON PROFITTAKING FOLLOWING THE PREVIOUS DAY'S RISE UP NEAR RECORD TERRITORY THE THREAT OF A DRAWNOUT CONFRONTATION WITH ANTIGOVERNMENT REBELS ALSO PRESSURED STOCKS 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 9401140008 940114 THURSDAY'S MARKETS BOND PRICES SLIDE ON REPORT OF RETAIL SALES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES PLUNGED ON A STRONGERTHANEXPECTED RETAIL SALES REPORT STOCKS AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 620 POINTS TO 384243 STANDARD & POOR'S 500STOCK INDEX FELL 170 TO 47247 BUT THE NASDAQ COMPOSITE INDEX INCHED UP 094 TO A RECORD 78781 BOND TRADERS IGNORED POSITIVE INFLATION NEWS AND FOCUSED INSTEAD ON EVIDENCE OF ROBUST RETAIL SALES FOR DECEMBER ROBERT GOODMAN SENIOR ECONOMIC ADVISER AT PUTNAM INVESTMENTS SAID THE STRONG RETAIL SALES FIGURES KEPT FEARS OF INFLATION ALIVE BOND TRADERS ARE ASSOCIATING ECONOMIC GROWTH AND INFLATION PRESSURES AND THEY'RE DEAD WRONG MR GOODMAN SAID A RECENT SLUMP IN THE DOW JONES UTILITY AVERAGE OFTEN AN INDICATOR OF INTERESTRATE TRENDS SUGGESTS A FURTHER CLIMB IN INTEREST RATES SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS THE UTILITY AVERAGE IS FLASHING A BIG YELLOW WARNING SIGN THAT THE BOND MARKET MAY HAVE SOME TROUBLE AHEAD MR SHULMAN SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 089 TO 11182 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2779 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1142 ISSUES FELL AND 936 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE SLID NEARLY ONE POINT OR ALMOST 10 FOR EACH 1000 FACE AMOUNT TO YIELD 625 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17505 MARKS AND 11176 YEN COMPARED WITH 17337 MARKS AND 11220 YEN WEDNESDAY 9401140007 940114 SMALL STOCK FOCUS SMALLSTOCK INDEXES SET RECORD HIGHS AFTER FIRST FALLING IN RESPONSE TO BONDS BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER SPENDING ALMOST THE ENTIRE SESSION IN NEGATIVE TERRITORY SMALLCOMPANY STOCKS ENDED THE DAY MOSTLY HIGHER WITH TWO KEY INDEXES CLOSING AT RECORD LEVELS SMALLCOMPANY STOCKS FELL AT THE OPENING ON THE WEAKNESS OF THE BOND MARKET BUT THOUGH BOND PRICES CONTINUED TO DETERIORATE THROUGH THE DAY WITH THE TREASURY LONG BOND POSTING A LOSS OF MORE THAN A FULL POINT SMALLCAPITALIZATION STOCKS HIT THEIR LOWS AT MIDDAY AND SPENT THE AFTERNOON EDGING BACK TOWARD POSITIVE TERRITORY THE RESILIENCE OF SMALLCAP STOCKS IS SEEN BY TRADERS AND ANALYSTS AS AN INDICATION THAT THE MARKET MIGHT PUSH HIGHER BEFORE A WIDELY ANTICIPATED CORRECTION THE SMALLCOMPANY MARKET IS TRYING TO CORRECT TRYING TO CONSOLIDATE SAID PATRICK DAVIS HEAD OF OVERTHECOUNTER TRADING AT SALOMON BROTHERS INC HE POINTED OUT HOWEVER THAT WHENEVER THE MARKET HAS COME UNDER PRESSURE RECENTLY PEOPLE SEEM TO STEP BACK IN THE RUSSELL 2000 INDEX A MEASURE OF SMALLCAP STOCKS TRADED ON THE MAJOR STOCK EXCHANGES AND ON THE NASDAQ STOCK MARKET WAS UP 041 OR 016 TO CLOSE AT A RECORD 26064 HAVING TRADED AS LOW AS 2596 THE NASDAQ COMPOSITE INDEX ENDED UP 094 OR 012 AT A RECORD 78781 SURPASSING A HIGH SET IN OCTOBER 1993 EARLIER THE COMPOSITE FELL AS LOW AS 78374 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 064 OR 024 TO 26173 AND THE DOW JONES INDUSTRIAL AVERAGE AT 384243 WAS DOWN 62 OR 016 ON NASDAQ ADVANCERS LED DECLINERS 1587 TO 1406 ON TOTAL VOLUME OF 289 MILLION SHARES DOWN FROM WEDNESDAY'S 323 MILLION SHARES NATIONAL MARKET VOLUME WAS 245 MILLION SHARES DOWN FROM 274 MILLION THE DAY BEFORE AFTER REPORTING FOURTHQUARTER EARNINGS OF 11 CENTS A SHARE COMPARED WITH A YEAREARLIER EIGHT CENTS SPECIAL DEVICES ROSE 1 3/4 OR 23 TO 9 3/4 TRICORD SYSTEMS GAINED 2 3/8 OR 12 TO 22 1/8 AFTER CS FIRST BOSTON RAISED ITS RATING ON THE COMPANY'S STOCK TO STRONG BUY FROM BUY BALTIMORE BANCORP NYSE ROSE 1 5/8 OR 12 TO 15 5/8 ON SPECULATION THAT MELLON BANK MIGHT BE CONSIDERING A 21ASHARE OFFER TO BUY THE COMPANY AFTER THE STOCK'S INITIAL SURGE WHICH PUSHED IT TO 16 1/4 BALTIMORE BANCORP SAID IT DOESN'T EXPECT TO RECEIVE A BID FROM MELLON AND ISN'T IN NEGOTIATIONS WITH IT REGARDING A SALE MELLON DECLINED TO COMMENT ALSO ON THE BIG BOARD PUBLIC SERVICE CO OF NEW MEXICO ROSE 1 3/8 OR 12 TO 13 1/8 AFTER THE COMPANY LATE WEDNESDAY SAID IT WILL TAKE A FOURTHQUARTER WRITEDOWN OF 112 MILLION OR 269 A SHARE IN A MOVE TO REGAIN FINANCIAL HEALTH THE COMPANY ALSO SAID IT WILL SEEK A 30 MILLION IMMEDIATE RATE REDUCTION AND WILL CUT NET OPERATING COSTS BY 10 MILLION SPAGHETTI WAREHOUSE NYSE SAID IT PLANS TO BUY BACK UP TO 500000 COMMON SHARES FOR INVESTMENT PURPOSES ITS STOCK PRICE ROSE 3/4 OR 98 TO 8 3/8 AMONG THE MOST ACTIVE AMONG SMALLCAP GAINERS WAS SPECIALTY RETAIL GROUP WHICH SAID SALES AT ITS BUILDING BLOCKS SUBSIDIARY ROSE 167 IN THE QUARTER ENDED JAN 2 FROM THE YEAREARLIER PERIOD WHILE SAMESTORE SALES WERE UP 9 FOR THE QUARTER SPECIALTY RETAIL SHARES ROSE 1/8 OR 18 AT 2 1/4 BIOMAGNETIC TECHNOLOGIES FELL 3/8 OR 94 TO 3 5/8 AFTER THE COMPANY REPORTED A LOSS FOR THE YEAR OF 111 A SHARE COMPARED WITH A YEAREARLIER PERSHARE LOSS OF 98 CENTS THE COMPANY SAID IT WILL NEED ADDITIONAL FINANCING TO REMAIN A GOING CONCERN LA GEAR NYSE FELL 1 1/4 OR 13 TO 8 3/4 AFTER THE COMPANY SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS FROM CONTINUING OPERATIONS OF 14 MILLION TO 16 MILLION AND THAT ITS FULLYEAR CONTINUINGOPERATIONS LOSS WILL BE 315 MILLION TO 335 MILLION 9401140006 940114 ECONOMY JP MORGAN 4THPERIOD NET SURGED FOUR OTHER BANKS ALSO REPORT GAINS BY BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL PROPELLED BY RECORD TRADING REVENUE JP MORGAN & CO YESTERDAY ANNOUNCED SHARPLY HIGHER FOURTHQUARTER EARNINGS FOUR OTHER BANKS BANK OF NEW YORK CO WACHOVIA CORP FIRST FIDELITY BANCORP AND MELLON BANK CORP ALSO ANNOUNCED IMPROVED RESULTS MORGAN'S RESULTS WERE DRIVEN BY TRADING REVENUE OF 606 MILLION UP FROM 200 MILLION IN THE YEAREARLIER PERIOD DRIVING PROFITS FOR THE FOUR OTHER BANKS WERE CONTINUED WIDE PROFIT MARGINS BETWEEN BORROWING COSTS AND RATES EARNED ON LOANS AS WELL AS UPTICKS IN REVENUE FROM LENDING AND CREDIT CARDS THE IMPROVED RESULTS DID LITTLE FOR THE BANKS' STOCK PRICES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MORGAN CLOSED AT 70375 UP 75 CENTS BANK OF NEW YORK CLOSED UNCHANGED AT 5875 WACHOVIA GAINED 125 CENTS TO 33875 FIRST FIDELITY CLOSED AT 4450 UP 125 CENTS AND MELLON CLOSED AT 54875 UP 50 CENTS MORGAN HAD A GREAT TRADING RESULT AND THE STOCK DID NOT REACT VERY POSITIVELY SAID ROBERT ALBERTSON THE CHIEF BANK ANALYST AT GOLDMAN SACHS & CO THE RESULTS FOR THE REGIONALS WERE PRETTY MUCH WHAT WE EXPECTED SO THEY WERE ALSO BASICALLY NEUTRAL THE STRONGERTHANEXPECTED TRADING RESULTS WERE A VERY BIG SURPRISE SAID JAMES ROSENBERG A BANK ANALYST WITH LEHMAN BROTHERS INC WHO SAID THAT A LARGE CHUNK OF THE EARNINGS CAME FROM LATIN AMERICAN DEBT INSTRUMENTS ALTHOUGH THE STOCK MARKET HAS TENDED TO TREAT THE NEW YORK BANK'S MASSIVE TRADING PROFITS SOMEWHAT SKEPTICALLY OUT OF A CONCERN THAT THEY ARE ONETIME GAINS ANALYSTS ARE BEGINNING TO VIEW TRADING EARNINGS MORE FAVORABLY MORGAN IS SHOWING US THAT THEY HAVE THE CAPACITY TO SURPRISE US OVER AND OVER MR ROSENBERG SAID IN ADDITION TO ITS SPECTACULAR TRADING INCOME MORGAN HAD STRONG REVENUE GROWTH IN VIRTUALLY ALL OF ITS OTHER BUSINESS SEGMENTS FEES FROM INVESTMENT MANAGEMENT AS WELL AS CUSTODY CLEARING AND BROKERAGE SERVICES ALL ROSE SIGNIFICANTLY IN THE QUARTER CORPORATE FINANCE WAS A PARTICULAR STANDOUT JUMPING BY 45 TO 158 MILLION THE BIG NEW YORK BANK BENEFITED FROM INCREASED FEE INCOME REDUCED CREDIT AND OPERATING COSTS AND SLIGHTLY ENHANCED NET INTEREST MARGINS HOWEVER WHILE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS CHRISTOPH KOTOWSKI A SENIOR VICE PRESIDENT AT OPPENHEIMER & CO SAID THEY WOULD HAVE FALLEN SHORT IF IT WEREN'T FOR A REDUCTION IN ITS RATE OF TAXATION ALTHOUGH THE NUMBERS ARE WHAT WE EXPECTED THAT'S ONLY BECAUSE THEIR TAX RATE DROPPED A COUPLE POINTS HE SAID IT WAS A DISAPPOINTING QUARTER THEIR SPREAD IS STAYING STABLE BECAUSE THEY ARE GROWING THE CREDITCARD BUSINESS SAID DAVID BERRY THE RESEARCH DIRECTOR AT KEEFE BRUYETTE & WOODS MICHAEL PASCALE A VICE PRESIDENT OF THE BANK SAID CARDS CONTRIBUTED ABOUT 23 OF EARNINGS THROUGHOUT 1993 THE PITTSBURGHBASED COMPANY POSTED NET INCOME OF 114 MILLION OR 150 A SHARE THAT COMPARES WITH YEAREARLIER NET OF 105 MILLION OR 162 A SHARE WHICH INCLUDED A TAX BENEFIT OF 29 MILLION FOR 1993 EARNINGS DECLINED 17 A REFLECTION MELLON SAID OF A 130 MILLION TAX BENEFIT A YEAR EARLIER THE BANK POSTED NET INCOME OF 361 MILLION OR 463 A SHARE FOR 1993 INCLUDING THE NET IMPACT OF A RESTRUCTURING CHARGE RELATED TO BOSTON CO AND SECURITIES GAINS THAT COMPARES WITH YEARAGO NET OF 437 MILLION OR 696 A SHARE INCLUDING THE TAX BENEFIT MELLON RETURNED TO FULLY TAXED STATUS IN 1993 AFTER EXHAUSTING TAXBENEFIT CARRYFOWARD IN LATE 1992 THE BANK EMPHASIZED THAT OPERATING EARNINGS WERE UP IN 1993 ON A FULLY TAXED BASIS YEAREARLIER FIGURES WERE 307 MILLION OR 463 A SHARE IN THE FOURTH QUARTER OF 1993 MELLON AGREED TO ACQUIRE DREYFUS CORP A MUTUALFUND COMPANY FOR 185 BILLION MELLON'S PROVISION FOR CREDIT LOSSES WAS 25 MILLION IN THE FOURTH QUARTER DOWN FROM 35 MILLION A YEAR EARLIER NONPERFORMING ASSETS DECLINED 13 AT DEC 31 COMPARED WITH SEPT 30 NET INTEREST MARGIN WAS 439 AT THE END OF 1993 COMPARED WITH 444 A YEAR EARLIER WACHOVIA CONTINUED TO BENEFIT FROM GROWING INTEREST INCOME AND REDUCTIONS IN BOTH EXPENSES AND PROVISIONS FOR CREDIT LOSSES THE COMPANY WITH JOINT HEADQUARTERS IN WINSTONSALEM NC AND ATLANTA SAW A 76 INCREASE IN LOANS IN THE FOURTH QUARTER TO 157 BILLION TOTAL AVERAGE INTERESTEARNING ASSETS INCREASED ALMOST 10 TO 281 BILLION FROM A YEAR EARLIER WACHOVIA'S ALREADY STRONG CREDIT QUALITY CONTINUED TO IMPROVE WITH NONPERFORMING ASSETS TOTALING 1549 MILLION AT THE END OF THE FOURTH QUARTER COMPARED WITH 1881 MILLION IN THE THIRD QUARTER THE RESULTS WHICH WERE IN LINE WITH EXPECTATIONS REFLECTED A PROVISION FOR CREDIT LOSSES OF 18 MILLION FOR THE JUSTCOMPLETED QUARTER COMPARED WITH 286 MILLION A YEAR EARLIER FOR THE YEAR THE PROVISION FOR LOAN LOSSES WAS 927 MILLION COMPARED WITH 1194 MILLION IN 1992 FIRST FIDELITY'S 16 INCREASE IN FOURTHQUARTER NET INCOME RESULTED IN PERSHARE EARNINGS THAT WERE SLIGHTLY HIGHER THAN THE CONSENSUS ESTIMATE OF ANALYSTS THE IMPROVED PERFORMANCE PARTLY REFLECTED THE LAWRENCEVILLE NJ BANKING COMPANY'S ACQUISITIONS IN 1993 FIRST FIDELITY ACQUIRED FIVE BANKS AND IT ANNOUNCED THREE ADDITIONAL ACQUISITIONS THAT IT EXPECTS TO CLOSE IN THE 1994 FIRST HALF THE RESULTS ALSO REFLECTED AN INCREASE IN NET INTEREST INCOME IMPROVING ASSET QUALITY AND SOME INCREASES IN CERTAIN NONINTEREST INCOME FIRST FIDELITY ALSO CITED CONTINUING CONTROL OF OPERATING EXPENSES AT YEAR END FIRST FIDELITY'S TOTAL ASSETS WERE UP TO 3227 BILLION FROM 3089 BILLION A YEAR EARLIER TONY TERRACCIANO CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY'S GEOGRAPHIC EXPANSION THROUGH ACQUISITIONS SHOULD PROVIDE OPPORTUNITIES FOR CONTINUED COSTEFFECTIVE GROWTH IN THE NOWSTRONGER ECONOMY 9401140005 940114 MURDER SHE WRITES A MAGAZINE EDITOR HANDLES GRISLY COPY TRUE DETECTIVE'S ODD APPEAL IS NO MYSTERY TO READERS MOST OF THEM WOMEN BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN ONE OF HER WRITERS FAILS TO PERSUADE A HOMICIDE INVESTIGATOR TO GIVE UP A PHOTO OF A BLUDGEONED CORPSE ROSE MANDELSBERG EDITOR OF TRUE DETECTIVE MAGAZINE GETS THE COP ON THE PHONE LOWERING HER VOICE PROVOCATIVELY THE REDHAIRED 37YEAROLD MS MANDELSBERG PURRS OF COURSE SERGEANT WE'LL NEED A GOOD PICTURE OF YOU TOO WE APPRECIATE EXCELLENT POLICE WORK THUS DISARMED THE OFFICER STILL PROTESTS THAT HIS PHOTOS ARE TOO GRUESOME FOR PUBLICATION BUT AFTER HE GRILLS MS MANDELSBERG ABOUT HER JOURNALISTIC ETHICS SHE RESPONDS NO SIR I DON'T WANT TO PUT THE CREATURE FROM THE BLACK LAGOON' ON MY COVER WE WANT TO TASTEFULLY KEEP OUR READERS INFORMED THE PHOTOS LAND ON HER DESK THE NEXT DAY THE WORLD OF DETECTIVE MAGAZINES IS JUST BRUTAL THESE DAYS THE BREATHLESS WHODUNIT GAZETTES ARE GRUDGINGLY BEING TRANSFORMED INTO A WHO'S WHO OF GORE THE OLD FORMULA OF GUMSHOEGETSBADGUY ISN'T ENOUGH TO ATTRACT CRIME BUFFS ANYMORE AS READERS HAVE BECOME JADED BY THE STEADY STREAM OF MOTIVELESS BLOODBATHS ON THE EVENING NEWS THE LOVE TRIANGLE STILL HAPPENS BUT THERE ARE MORE ATROCITIES NOW AND PEOPLE ARE REALLY INTO THEM MS MANDELSBERG SAYS WISTFULLY SQUEEZED BY COMPETITION FROM SUPERMARKET TABLOIDS AND A WAVE OF TRUECRIME TV SHOWS SUCH AS AMERICA'S MOST WANTED MS MANDELSBERG FEELS COMPELLED TO RUN EVERMORE SENSATIONAL COVERS AND HEADLINES HER EDITORS RECENTLY CRAFTED SUCH GEMS AS FOR A MEASLY 15 BUCKS HE RIPPED HER BODY APART OVER AND OVER WHO TORCHED GRANDPA AT THE RODEO AND STRANGLED NUDE IN A FLYING HEARSE ALONG WITH THE BLOOD AND GORE A SENSE OF PRIDE COMES WITH THE CRIME WRITER'S JOB EVERY WORD IS FACT SAYS MS MANDELSBERG AND WE AREN'T HACKS WE KNOW THAT THE WORD DUMPSTER IS A CAPITALIZED TRADEMARK WHEN SO MANY PEOPLE YOU WRITE ABOUT END UP STUFFED IN THE GARBAGE YOU HAVE TO KNOW THINGS LIKE THAT BESIDES EDITING TRUE DETECTIVE SHE IS ALSO EDITOR IN CHIEF OF FOUR OTHER CRIME MAGAZINES PLUS SOME SPECIAL YEARBOOKS FRONT PAGE DETECTIVE INSIDE DETECTIVE MASTER DETECTIVE AND OFFICIAL DETECTIVE THE MAGAZINES OWNED BY REESE COMMUNICATIONS INC IN MANHATTAN HAVE A COMBINED CIRCULATION OF 500000 WHICH IS HOLDING STEADY BUT GRIMLY SO SINGLECOPY SALES AT 250 EACH REPRESENT 80 OF THE CIRCULATION BUT THE PROLIFERATION OF NEW MAGAZINES WHICH HAVE GROWN 83 TO 3300 TITLES SINCE 1982 HAS PUSHED CRIME PERIODICALS OFF MANY DOWNTOWN NEWSSTANDS SO THE GENRE NOW SURVIVES MAINLY IN SUBURBAN CONVENIENCE STORES SUPERMARKETS AND DRUGSTORES ESPECIALLY IN THE SOUTH THAT'S A FAR CRY FROM WHEN THE FIRST ISSUE OF TRUE DETECTIVE APPEARED IN 1924 IT WAS THE GUMSHOE'S GOLDEN AGE CRIME WRITERS WERE ABLE TO IMPOSE A CERTAIN RHYME REASON AND ROMANCE ON THEIR STORIES BEFORE AUTOMATIC PISTOLS AND RANDOM SLAUGHTER BECAME COMMON A YELLOWED PAGE IN AN EARLY EDITION CARRIES A BYLINE THAT WOULD LATER BECOME FAMOUS FOR FICTIONALIZED MYSTERIES DASHIELL HAMMETT THE CREATOR OF SAM SPADE BUT THE MAGAZINES' DEPICTION OF GLAMOUR IN DETECTIVE WORK IS MORE AND MORE LOST IN THE BLOODANDGUTS OF TODAY'S CRIMES SAYS ARTHUR LURIGIO ASSOCIATE PROFESSOR OF CRIMINOLOGY AT LOYOLA UNIVERSITY IN CHICAGO PEOPLE NOW READ ABOUT CRIME TO BE PSYCHOLOGICALLY INOCULATED TO SEE THAT THOSE WHO COMMIT HORRORS ARE CAUGHT HE SAYS SOME CRIME BUFFS FIND TODAY'S CRIMINALS LESS INTERESTING THAN YESTERYEAR'S CRIME NOVELIST ELMORE LEONARD SAYS MOST MODERN FELONS ARE TOO SENSELESS TO INSPIRE HIS FICTION WHEN I WAS A KID IN THE 1930S I HAD A PICTURE TAKEN WITH A TOY GUN IN A POSE MIMICKING BONNIE AND CLYDE WHO WERE ON A ROBBERY SPREE BUT THEY WEREN'T SHOOTING THEIR VICTIMS DOWN LIKE DOGS THE WAY SO MANY ROBBERS DO NOW WHERE'S THE DRAMA IN THAT KIND OF CRAZINESS I CAN'T GET INTERESTING CRIMINALS OUT OF THE NEWS I HAVE TO MAKE THEM UP BUT MS MANDELSBERG HAS TO STICK TO THE FACTS RIGHT DOWN TO THE MOST GRISLY PARTICULARS WE HAVE A CORE OF LOYALISTS OUT THERE WHO WANT EVERY DETAIL FROM WHAT BRAND OF CIGARETTE THE PERP WAS SMOKING TO SEEING THE BALLISTICS EXPERT DIG THE SLUG OUT OF A BODY TO THE JUDGE METING OUT THE SENTENCE ACCORDING TO A RECENT SURVEY 54 OF TRUE DETECTIVE READERS ARE WOMEN ONE IS GAIL JENSEN OF VADNAIS HEIGHTS MINN WHO SELLS INDUSTRIAL PRODUCTS AND SAYS HER MAIN HOBBY IS KNITTING I ABHOR VIOLENCE SHE SAYS I READ THESE MAGAZINES TO SEE CRIMINALS BROUGHT TO JUSTICE CATHERINE HAAS AN OMAHA NEB INVESTMENT COUNSELOR SAYS SHE LIKES READING STORIES ABOUT MURDERERS OF OLD LADIES REALLY VICIOUS TYPES BUT SHE WON'T LET HER 11 AND 13YEAROLD CHILDREN LOOK AT THE MAGAZINE AND SHE SAYS SHE IS PRAYING THAT NYPD BLUE IS TAKEN OFF TELEVISION BECAUSE OF ITS VIOLENCE JOE SCHWARZ A CHICAGO DENTIST SAYS OFFICIAL DETECTIVE MAGAZINE LETS HIM LIVE VICARIOUSLY IN A WORLD OF CATCHING RAPISTS AND KILLERS IT'S ESCAPISM BUT HE DOESN'T LEAVE COPIES IN HIS PATIENT WAITING AREA PEOPLE HAVING THEIR TEETH CARED FOR DON'T NEED TO READ ABOUT CHAINSAW MASSACRES HE SAYS TRUE DETECTIVE ALSO REACHES PEOPLE ON THE OTHER SIDE OF THE LAW EACH MONTH THE PUBLICATION RECEIVES A FEW LETTERS FROM PRISON INMATES MANY OF THEM PRAISE THE MAGAZINE'S UBIQUITOUS ADS FOR SCHOOLS AND CORRESPONDENCE COURSES TO BECOME PRIVATE EYES AND LOCKSMITHS SAYING THEY INSPIRED THEM TO TURN THEIR LIVES AROUND ADS COST 500 A PAGE A JOB AT TRUE DETECTIVE CAN BE UNSETTLING FOR THE SQUEAMISH GARY KRYSTOFIAK WHO WAS HIRED AS PRODUCTION MANAGER FROM CLASSICAL A MUSIC MAGAZINE LAST YEAR SAYS HE BECAME NAUSEATED OVER LUNCH AFTER VIEWING SOME PHOTOS FOR HIS NEW EMPLOYER WHAT WE CALL ART HE EXCLAIMS PUTTING ONE HAND ON HIS STOMACH BUT PEOPLE WANT DIRT BEN HIRSCH ART DIRECTOR FOR THE MAGAZINES SAYS DEFENSIVELY LEARNING THE CRAFT MS MANDELSBERG SEEMS AN UNLIKELY PERSON TO EDIT THESE BLOODCURDLING PUBLICATIONS A FORMER PRIVATESCHOOL ENGLISH TEACHER SHE SAYS HER FAVORITE WRITER IS CHAUCER SHE SAYS SHE TOOK A SECRETARIAL JOB AT TRUE DETECTIVE IN 1977 SIMPLY TO DO SOMETHING MORE CREATIVE SHE BEGAN LEARNING ABOUT CRIME WRITING WHILE TYPING EDITORS' LETTERS TO FREELANCERS INSTRUCTING THEM ON IMPROVING THEIR STORIES WHEN ASSIGNED TO FACTCHECK ARTICLES SHE LEARNED TO UNCOVER AND CORROBORATE EVIDENCE SHE ALSO DEVELOPED A SKILL FOR GETTING PHOTOS OF CRIME VICTIMS FROM RELUCTANT SOURCES SOME OF WHOM WORRY ABOUT BEING SUED FOR HANDING THEM OVER IF THE DETECTIVES WON'T COOPERATE I GO TO THE DISTRICT ATTORNEY THEN THE CORONER UNTIL SOMEONE COMES THROUGH SINCE TAKING OVER MS MANDELSBERG HAS DONE AWAY WITH ONE STAPLE OF THE TRADE STAGED COVER PHOTOS SHOWING SCANTILY CLAD WOMEN UNDER ATTACK BY MEN THE COVERS WERE SEXIST SHE SAYS BUT WOMEN STILL TURN UP MOST OFTEN AS VICTIMS IN STORIES AND THE COPY AND GRAPHICS HAVE BECOME INCREASINGLY GRAPHIC I PUSH FOR EXCELLENCE IN WRITING BUT WHEN A KILLER REMOVES THE VICTIM'S INTESTINES IT'S FASCINATING SAYS MS MANDELSBERG CHRISTOS MIRTSOPOULOS A STORY EDITOR AT TRUE DETECTIVE SAYS THE EDITING AT THE MAGAZINE IS FIRM BY NECESSITY WE HAVE TO SAVE THE READER FROM SOME WRITERS WHO THINK THEY'RE MICKEY SPILLANE HE SAYS THE MAGAZINE PAYS JUST 250 FOR A 6000WORD STORY 200 FOR COVER PHOTOS CHARLES SASSER A FORMER HOMICIDESQUAD DETECTIVE IN TULSA OKLA HAS WRITTEN ABOUT 400 SUCH PIECES SINCE QUITTING THE FORCE HE SAYS I ENJOY REPORTING ON DETECTIVES BUT BEING ONE GAVE ME NIGHTMARES 9401140004 940114 TECHNOLOGY & HEALTH COMPUSERVE A UNIT OF H&R BLOCK CUTS ITS ONLINE PRICES COLUMBUS OHIO COMPUSERVE INC THE NATIONS OLDEST LARGEST AND COSTLIEST ONLINE COMPUTER SERVICE TO SUBSCRIBE TO SAID IT WILL CUT ITS SUBSCRIBER FEES BY AS MUCH AS 40 CITING CHEAPER TECHNOLOGY AND LOWER OPERATING COSTS THE H&R BLOCK INC UNIT SAID IT WILL SLASH ITS HOURLY CHARGES FEB 6 BY AS MUCH AS 40 DEPENDING ON THE MODEM SPEED SUBSCRIBERS USE TO ACCESS THE SYSTEM SUBSCRIBERS ACCESSING THE SYSTEM WITH 300 BITSPERSECOND OR 1200 TO 2400 BITSPERSECOND MODEMS WILL SEE THE HOURLY FEE DROP TO 480 FROM 6 AND 8 RESPECTIVELY USERS OF HIGHERSPEED MODEMS WILL SEE THEIR HOURLY RATES DROP TO 960 FROM 16 COMPUSERVE'S MONTHLY FEE REMAINS UNCHANGED AT 895 WHILE COMPUSERVE HAS BEEN INTEGRATING LESS EXPENSIVE MICROPROCESSORS INDUSTRY INSIDERS SAY THE PRICE CUT REFLECTS A MORE COMPETITIVE MARKET BOTH APPLE COMPUTER INC AND MICROSOFT CORP RECENTLY ANNOUNCED THEIR ENTRY INTO THE ONLINE SERVICES MARKET WITH MORE COMPANIES EXPECTED TO JUMP INTO THE FRAY IN THE COMING MONTHS COMPUSERVE'S MAIN COMPETITORS PRODIGY SERVICES CO AND AMERICA ONLINE INC AREN'T PLANNING TO WAGE ANY PRICE WARS FEE STRUCTURES OF THESE SERVICES VARY SO WIDELY THAT IT IS A NIGHTMARE TO COMPARE THEM SAYS JOSH HARRIS AN ANALYST WITH JUPITER COMMUNICATIONS MR HARRIS THINKS THE CUT IS TOO LITTLE THEY'RE GOING TO HAVE TO CUT MORE TO STAY COMPETITIVE HE SAID NEWS OF THE CUTS CAUSED STOCK OF AMERICA ONLINE TO FALL 250 OR 48 TO 50 IN NASDAQ STOCK MARKET TRADING H&R BLOCK SHARES CLOSED AT 41875 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING PRODIGY IS A PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO 9401140003 940114 PEPSICO COCACOLA PREPARE FOR CHANCE TO SELL TO VIETNAM HONG KONG AMERICA'S SOFTDRINK GIANTS ARE WASTING NO TIME PREPARING FOR THE END OF THE US ECONOMIC EMBARGO AGAINST VIETNAM PEPSICOLA INTERNATIONAL PEPSICO INC'S INTERNATIONAL SOFTDRINKS ARM HAS SIGNED A PRELIMINARY AGREEMENT WITH ONE OF VIETNAM'S LARGEST BEVERAGE COMPANIES TO BOTTLE SOFT DRINKS IN THAT COUNTRY FOR THE PAST FEW MONTHS PEPSICOLA INTERNATIONAL HAS HAD A SHIP LOADED WITH PEPSI CONCENTRATE BOTTLE CAPS CANS AND BOTTLES ANCHORED IN SINGAPORE AND AWAITING WORD IT CAN HEAD FOR VIETNAM ACCORDING TO BARRY SHEA A VICE PRESIDENT OF PEPSICOLA INTERNATIONAL ALREADY PREPARED IS PEPSI'S FIRST TV COMMERCIAL AIMED AT THE VIETNAMESE MARKET PRODUCED BY OGILVY & MATHER AND FEATURING MISS VIETNAM IN MARCH OF 1993 PEPSI GAVE THE FRANCHISE IN VIETNAM TO A JOINT VENTURE IN HO CHI MINH CITY PEPSI HAS NO EQUITY STAKE IN THE VENTURE CALLED INTERNATIONAL BEVERAGES CO WHICH IS BETWEEN A VIETNAMESE COMPANY CALLED SP CO AND A SINGAPORE COMPANY NAMED MACONDRAY & CO MEANWHILE ARCHRIVAL COCACOLA CO IS ALSO BUSY PREPARING ITS FORMAL ENTRY INTO VIETNAM WHERE IT ALREADY ENJOYS WIDE DISTRIBUTION ON THE BLACK MARKET COKE AND SINGAPORE SOFTDRINKS COMPANY FRASER & NEAVE LTD FORMED A JOINT VENTURE LAST MARCH WITH THAI PURE SOFT DRINKS LTD AS PART OF A STRATEGY TO TAP THE INDOCHINESE MARKET THE VENTURE WILL PRODUCE COKE AND OTHER SOFT DRINKS IN A RETOOLED HO CHI MINH CITY PLANT THAT COKE BUILT BEFORE THE VIETNAM WAR AND IN A NEW BOTTLING PLANT IN HANOI COKE ALSO HAS AN INTEREST IN A CAMBODIAN SOFTDRINKS COMPANY BASED IN PHNOM PENH 9401140002 940114 VALUEVISION MAKES CASHANDSTOCK BID FOR NATIONAL MEDIA MINNEAPOLIS VALUEVISION INTERNATIONAL INC SEEKING TO CREATE WHAT IT SAID WOULD BE A LEADER IN THE INTERACTIVE VIDEO SHOPPING MARKETPLACE OF THE FUTURE LAUNCHED AN UNSOLICITED 10ASHARE STOCKANDCASH BID FOR NATIONAL MEDIA CORP THE BID BY THE NATION'S THIRDLARGEST HOMESHOPPING NETWORK HAS AN INDICATED VALUE OF ABOUT 1175 MILLION NATIONAL MEDIA A PHILADELPHIABASED TELEVISION MARKETER HAD NO IMMEDIATE COMMENT VALUEVISION ALSO DISCLOSED THAT IT HAS COMPILED A 98 NATIONAL MEDIA STAKE SINCE MIDDECEMBER WHILE IT SAID IT SEEKS A FRIENDLY MERGER THE COMPANY HINTED IT ISN'T AVERSE TO MAKING A HOSTILE EFFORT VALUEVISION SAID IT HAD MORE THAN 50 MILLION IN CASH AND A DEBTFREE BALANCE SHEET AND IS CONFIDENT FINANCING COULD BE ARRANGED PROMPTLY UNDER TERMS OF THE PROPOSAL VALUEVISION WOULD PAY CASH FOR A 501 STAKE IN NATIONAL MEDIA THE REMAINDER OF THE PURCHASE WOULD BE IN VALUEVISION CLASS A STOCK THE PROPOSAL IS SET TO EXPIRE AT 501 PM EASTERN TIME ON JAN 21 THE DISCLOSURE CAME AFTER THE MARKET'S CLOSE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONAL MEDIA SHARES CLOSED AT 825 UP 50 CENTS OR 65 VALUEVISION'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT L JOHANDER SAID IN A LETTER TO NATIONAL MEDIA'S BOARD THAT BASED UPON THE OPPORTUNITIES FOR GROWTH IN THE TELEVISION HOMESHOPPING MARKET IN WHICH VALUEVISION OPERATES AND IN THE TELEVISION DIRECTRESPONSE INDUSTRY IN WHICH YOU COMPETE WE HAVE CONCLUDED THAT A COMBINATION WOULD BE IN THE BEST INTERESTS OF STOCKHOLDERS OF BOTH COMPANIES NATIONAL MEDIA OFFICIALS COULDN'T BE REACHED FOR COMMENT 9401140001 940114 WHAT'S NEWS BUSINESS AND FINANCE GTE ANNOUNCED A 18 BILLION PRETAX CHARGE TO RESTRUCTURE AND CUT 17000 JOBS OR 13 OF ITS WORK FORCE THE COMPANY SAID THE CHARGE SHOULD TRIM FOURTHQUARTER RESULTS BY ABOUT 12 BILLION AND TRIGGER A NET LOSS THE THREEYEAR STREAMLINING PLAN IS EXPECTED TO SAVE 1 BILLION ANNUALLY AS GTE SLIMS DOWN AND PREPARES FOR COMPETITION IN THE MULTIMEDIA ARENA CITICORP PLANS TO TAKE 604 MILLION IN CHARGES TO REDUCE OPERATIONS AND PERSONNEL FURTHER AND TO SELL PART OF ITS QUOTRON UNIT TO REUTERS THE BANKING COMPANY ALSO SAID ITS NET INCOME MORE THAN DOUBLED IN THE FOURTH QUARTER CONSUMER PRICES ROSE 02 IN DECEMBER AND GAINED 27 FOR 1993 THE US INFLATION OUTLOOK IS AS PROMISING AS IT HAS BEEN IN DECADES HOLDING BIG IMPLICATIONS FOR ECONOMIC DECISIONMAKING BY INDIVIDUALS AND CORPORATE AMERICA THAT HAS IN THE PAST HINGED ON A BELIEF THAT INFLATION IS INEVITABLE RETAIL SALES INCREASED 08 IN DECEMBER AND 1993 SALES JUMPED 62 THE STRONGEST ANNUAL GAIN IN FOUR YEARS SALES OF DURABLE GOODS ROSE 17 LAST MONTH AS MANY CONSUMERS TOOK ADVANTAGE OF LOW INTEREST RATES TO IMPROVE OR FURNISH THEIR HOMES BOND PRICES FELL ON THE STRONGERTHANEXPECTED RETAIL SALES REPORT THE TREASURY'S 30YEAR ISSUE FELL ALMOST ONE POINT ITS YIELD WAS 625 THE DOW INDUSTRIALS DECLINED 620 TO 384243 PRUDENTIAL SECURITIES AGREED TO PAY A FORMER TOP PARTNERSHIP BROKER 250000 TO SETTLE AN ARBITRATION CASE PEOPLE FAMILIAR WITH THE CASE SAY PRUDENTIAL WAS ACCUSED OF PRESSURING BROKERS TO SELL THE PARTNERSHIPS WITHOUT ADEQUATELY DISCLOSING THE RISKS AETNA'S BOARD IS WEIGHING POSSIBLE STEPS INCLUDING DECENTRALIZING ITS ORGANIZATION SPINNING OFF BUSINESSES AND LAYING OFF EMPLOYEES ACCORDING TO PEOPLE CLOSE TO THE TALKS ANALYSTS EXPECT A MOVE EARLY NEXT MONTH UAL'S LABORLED BUYOUT PROPOSAL IS OPPOSED BY SOME PILOT UNION MEMBERS THE AIRLINE'S PILOTS STAND TO GAIN THE LARGEST PROPORTION OF EMPLOYEEOWNED STOCK 462 BUT ALSO FACE THE LARGEST REDUCTION IN PAY AS A GROUP 157 THE SEC IS EXAMINING PERSONAL TRADING RECORDS OF FIDELITY INVESTMENTS' PORTFOLIO MANAGERS TO DETERMINE IF THEY PROFITED FROM TRADING IN ADVANCE OF MUTUALFUND TRANSACTIONS JP MORGAN'S FOURTHQUARTER EARNINGS WERE SHARPLY HIGHER PROPELLED BY RECORD TRADING REVENUES BANK OF NEW YORK WACHOVIA FIRST FIDELITY AND MELLON ALSO POSTED IMPROVED RESULTS WARNACO PLANS TO ACQUIRE CALVIN KLEIN'S UNDERWEAR BUSINESS IN A TRANSACTION VALUED AT CLOSE TO 70 MILLION COOPER AND ITS FORMER COCHAIRMAN WERE CONVICTED OF PARTICIPATING IN AN ILLEGAL JUNKBOND TRADING SCHEME THAT GENERATED 35 MILLION IN PROFITS PROCTER & GAMBLE DISCLOSED SOME OF THE DETAILS OF ITS RESTRUCTURING PROGRAM SAYING IT WOULD CLOSE FOUR PLANTS AND HALT PRODUCTION LINES AT SIX OTHERS THE MOVES ARE PART OF ITS PLAN TO SHUT 30 PLANTS AND CUT 13000 JOBS WORLDWIDE ABOUT 12 OF ITS WORK FORCE ALCAN ALUMINIUM SAID IT WILL TEMPORARILY CUT ABOUT 9 OF ITS PRODUCTION CAPACITY REACTING TO THE GLOBAL GLUT THE MOVE COMES AS US AND WESTERN EUROPEAN GOVERNMENTS PRESS RUSSIA FURTHER TO CURB ALUMINUM EXPORTS U S WEST RAISED 125 MILLION FOR ITS RUSSIAN VENTURES AND CAME UP WITH A WAY TO REDUCE THE RISK OF DOING BUSINESS THERE BY PUTTING ALL OF ITS RUSSIAN OPERATIONS INTO A SEPARATE COMPANY AND THEN SELLING A MINORITY STAKE BONDS LEHMAN BROTHERS TREASURY INDEX 559561 OFF 4854 COMMODITIES OIL 1451 A BARREL UP 18 CENTS DOW JONES FUTURES INDEX 14272 UP 181 SPOT INDEX 12993 UP 108 DOLLAR 11176 YEN OFF 044 17505 MARKS UP 00168 9401130175 940113 THE KEYS TO SUCCESSFUL FLEXIBILITY BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL FEW CHANGES UNNERVE MANAGERS MORE THAN THROWING OUT THE TRADITIONAL 9TO5 WORK SCHEDULE OTHERS FEAR FLEXIBILITY WILL ROB THEM OF CONTROL THE WHOLE IDEA OF FLEXIBILITY IS THAT YOU DON'T MAKE RIGID SCHEDULES SAYS ANGELA PARSONS A STRIDE RITE CORP CUSTOMERSERVICE MANAGER WHOSE DEPARTMENT IS ON FLEXIBLE SCHEDULES YOU HAVE TO GO WITH THE FLOW AND THAT'S SCARY BUT AS A GROWING NUMBER OF COMPANIES EXPERIMENT WITH BROAD MOVES TOWARD FLEXIBILITY THEY ARE DISCOVERING SOME KEY INGREDIENTS TO MAKING IT WORK FIRST WORK GOALS AND CRITERIA FOR SUCCESS MUST BE MADE CLEAR RESPONSIBILITY FOR PERFORMANCE AND TEAM EFFORT MUST BE SHIFTED TO EMPLOYEES AND THERE CAN BE NO TABOOS ON TALKING ABOUT PERSONAL OR FAMILY NEEDS IN THE WORKPLACE SINCE THESE ISSUES PLAY A BIG ROLE IN EMPLOYEES' ABILITY TO PITCH IN WHEN FLEXIBLE SCHEDULING SITUATIONS DEMAND IT SHORTLY AFTER HARRIS BANK SET A SWEEPING NEW ALTERNATIVESCHEDULING POLICY MINERVA SOLANO GOT THE KIND OF FLEXTIME REQUEST EVERY MANAGER DREADS ONE EMPLOYEE A CLERICAL WORKER WHO PROCESSES BANKRUPTCY DOCUMENTS WANTED TO START HER EIGHTHOUR WORKDAY AT 530 AM CONCERNED ABOUT SAFETY MS SOLANO A VICE PRESIDENT AND COLLECTION MANAGER DENIED THE REQUEST I THOUGHT IF THERE WAS AN EMERGENCY WHO WOULD BE HERE TO HELP HER' MS SOLANO SAYS BUT THE EMPLOYEE REBOUNDED WITH AN ARGUMENT OF HER OWN A FEW OTHER WORKERS INCLUDING SECURITY GUARDS ARE ALREADY AT THE BANK AT THAT HOUR SHE SAID BESIDES SHE COULD SAVE AN HOUR OF WORK TIME BY GAINING QUICKER ACCESS TO THE PRINTERS SHE NEEDED HER ARGUMENTS WERE VERY CREATIVE SAYS MS SOLANO WHO AGREED TO TRY THE NEW SCHEDULE FLEXIBLE SCHEDULING WORKS BEST WHEN EMPLOYEES TAKE RESPONSIBILITY FOR MEETING THEIR OWN WORK GOALS AND SET THEIR OWN CRITERIA FOR SUCCESS TO HELP IMPLEMENT HARRIS'S POLICY KIMETHA WALTHER FIRPO A VICE PRESIDENT AND WORKANDLIFE PROGRAM COORDINATOR CREATED A NEW FORM THAT REQUIRES EMPLOYEES ASKING FOR FLEXTIME JOB SHARING COMPRESSED WORK WEEKS PARTTIME OR WORKATHOME ARRANGEMENTS TO EXPLAIN HOW THE CHANGE WOULD HELP THE COMPANY AND HOW THEIR WORK SHOULD BE EVALUATED THE THREEPAGE FORM IS SAVING MANAGERS TIME BY FORCING EMPLOYEES TO THINK THROUGH THEIR ROLE IN MEETING COMPANY OBJECTIVES OF 83 EMPLOYEE REQUESTS IN THE PAST FOUR MONTHS MANAGERS HAVE TURNED DOWN ONLY THREE SHIFTING RESPONSIBILITY TO EMPLOYEES ON FLEXIBLE SCHEDULES CAN ACTUALLY MAKE A MANAGER'S JOB EASIER WHEN MS PARSONS' BOSS ASKED HER TO PUT HER DEPARTMENT ON FLEXIBLE SCHEDULES I WAS VERY NERVOUS SHE SAYS CONCERNED THAT HER GROUP'S NEW HOURS WOULD MAKE IT HARD TO COVER ABSENCES SHE POSTED ALPHABETICAL LISTS ASSIGNING EMPLOYEES TO BACK EACH OTHER UP IT WASN'T WORKING VERY WELL SHE SAYS THEN EMPLOYEES CAME TO ME AND SAID ANGIE WHY DON'T WE JUST ASK WHO NEEDS THE EXTRA CASH' SHE SAYS THEIR PLAN WORKED OTHER COMMON FEARS EVAPORATE IN TIME THE WORRY THAT FLEXIBLE SCHEDULING WOULD TOUCH OFF A STAMPEDE FOR THE EXITS FOR INSTANCE WAS COMMON AT US BANCORP SAYS TENORA GRIGSBY A CONSULTANT WHO IS WORKING WITH THE THE PORTLAND ORE BANK HOLDING COMPANY BUT WHEN US BANCORP MADE ALTERNATIVE SCHEDULES AVAILABLE TO ALL 200 EMPLOYEES IN ONE CUSTOMERSERVICE DEPARTMENT ONLY ABOUT 25 SOUGHT TO CHANGE THEIR SCHEDULES MS GRIGSBY SAYS AND FEARS OF SCHEDULING NIGHTMARES EVAPORATED SEE RELATED ARTICLE WORKPLACE MORE COMPANIES EXPERIMENT WITH WORKERS' SCHEDULES WSJ JAN 13 1994 9401130174 940113 INTERNATIONAL JAPAN'S SHIMANO PROSPERS AMID GLOOM WITH LINE OF HIGHTECH BICYCLE GEAR BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SHIMANO INC IS EXPORTING ITS WAY TO RECORD PROFITS JUST AS JAPAN'S BLUECHIP MANUFACTURERS ARE REELING FROM A STRONG YEN THROUGH ITS AGGRESSIVELY INDEPENDENT STRATEGY SHIMANO WHICH IS BEST KNOWN FOR ITS BICYCLE GEAR SYSTEMS HAS SUCCESSFULLY TARGETED AND EXPLOITED A NICHE IN THE BOOMING GLOBAL MOUNTAINBIKE BUSINESS IN THE PROCESS SHIMANO HAS OVERCOME AN ECONOMIC DOWNTURN THAT HAS HAMMERED SOME OF JAPAN'S BIGGEST MANUFACTURERS SHIMANO'S LEAN FAMILYRUN OPERATION HAS GOBBLED UP AN ESTIMATED 70 TO 80 OF THE GLOBAL MARKET FOR HIGHTECHNOLOGY BICYCLE PARTS AND THE STRONG YEN HASN'T EATEN INTO SHIMANO'S BUSINESS BECAUSE THERE ISN'T A WHOLE LOT OF COMPETITION IN ITS NICHE SHIMANO ON WEDNESDAY REPORTED THAT CONSOLIDATED PRETAX EARNINGS ROSE 48 TO A RECORD 2357 BILLION YEN 2094 MILLION FOR THE YEAR ENDED NOV 20 GLOBAL SALES ROSE 18 TO 16798 BILLION YEN AND EVEN IN THE GROUP'S SELFDESCRIBED CONSERVATIVE FORECAST PRETAX PROFIT IS EXPECTED TO CLIMB 10 TO 26 BILLION YEN IN THE NEW FISCAL YEAR ON SLIGHTLY HIGHER SALES OF ROUGHLY 1685 BILLION YEN SHIMANO SHARES HAVE BEEN GAINING GROUND BUT STILL TRADE AT ROUGHLY HALF THEIR RECORD HIGHS OF A FEW YEARS AGO WITH SHIMANO'S SHARES AT 2920 YEN UP 40 YEN IN WEDNESDAY'S TRADING IN TOKYO MANY ANALYSTS BELIEVE THE STOCK IS CHEAP CONSIDERING A GROWING GLOBAL INTEREST IN MOUNTAIN BIKING AS A HEALTHY POLLUTIONFREE WAY OF HAVING A GOOD TIME SHIMANO IS PRODUCING A PRODUCT THAT IS RIGHT ON THE CURRENT OF A STRENGTHENING GLOBAL TREND TOWARD LEISURE AND HEALTH SAID HIROSHI YAMASHITA MANAGING DIRECTOR OF FIDELITY INVESTMENTS JAPAN LTD WHICH HOLDS AN UNDISCLOSED STAKE IN THE BIKEPARTS MAKER FOREIGN INVESTORS ARE TAKING NOTICE THE STAKE IN SHIMANO OWNED BY NONJAPANESE INVESTORS HAS GROWN TO BETWEEN 14 AND 15 ESTIMATES JONATHAN DOBSON AN ANALYST WITH JARDINE FLEMING SECURITIES IN TOKYO SHIMANO OFFICIALS ATTRIBUTE THEIR SUCCESS TO LESSONS LEARNED SEVERAL DECADES AGO WHEN THE THREE SHIMANO BROTHERS CURRENTLY CHAIRMAN PRESIDENT AND EXECUTIVE VICEPRESIDENT INHERITED THE COMPANY FROM THEIR FATHER IN THE EARLY 1960S BICYCLES WERE QUICKLY BECOMING AN OUTDATED MEANS OF TRANSPORTATION AS THE BROTHERS SOUGHT NEW MARKETS THEY FOUND IN THE US A WHOLE GENERATION OF BIKERS PEDDLING FOR THE SAKE OF PEDDLING NOT AS A METHOD OF GETTING TO WORK OR THE MARKET SHIMANO HEADQUARTERS IN AN AREA OF OSAKA KNOWN FOR ITS BLACKSMITHS SOON TURNED INTO A HIGHLY EFFICIENT CENTER FOR RESEARCH AND DEVELOPMENT IN AN EFFORT TO KEEP THE COMPANY AHEAD IN THE MARKET FOR EVERIMPROVING GEARS BRAKES AND DERAILLEURS TODAY SHIMANO IS CASHING IN THE VAST MAJORITY OF MOUNTAIN BIKES SOLD IN EUROPE AND THE US NOW COME FITTED WITH INCREASINGLY SOPHISTICATED SHIMANO BRAKES AND GEARS THAT OFFER THE PRECISION OF TOURING BIKES BUT CAN WITHSTAND THE POUNDING OF MOUNTAIN ROADS RECENTLY SHIMANO DEVELOPED INDEX GEAR CHANGERS THAT ALLOW THE BIKER TO SWITCH BETWEEN DOZENS OF GEAR CHOICES BY PUSHING A BUTTON MOUNTED ON THE HANDLE BARS THE NEXT TARGET IS CHINA WHERE SHIMANO RACKED UP 11 BILLION YEN OR ROUGHLY 6 OF WORLDWIDE SALES IN THE MOST RECENT FISCAL YEAR THE COMPANY ALREADY IS BUILDING A PARTS FACTORY OUTSIDE SHANGHAI THERE IS TREMENDOUS MOMENTUM NOW SAYS YOSHIZO SHIMANO EXECUTIVE VICE PRESIDENT AND ONE OF THE THREE BROTHERS WHO RUN THE FIRM KEN MARUYAMA AN ANALYST WITH UBS SECURITIES LTD SAYS DEMAND FOR SHIMANO'S CUTTINGEDGE SPEEDREGULATING PRODUCTS ALREADY IS GROWING STRONGLY IN CHINA WHERE ONLY 10 OR SO OF BIKES HAVE SOPHISTICATED GEARS AS NATIONAL WEALTH INCREASES CHINA WILL INCREASINGLY LOOM LARGE AS A MARKET MOREOVER MR MARUYAMA SAYS THAT THE START OF CHINESE PRODUCTION WILL HELP SHIMANO'S COSTCUTTING EFFORTS BECAUSE CHINESE LABOR COSTS ARE ONLY 1/20TH THAT OF JAPAN 9401130173 940113 WHO'S NEWS MAGMA POWER CO MAGMA POWER CO SAN DIEGO THE GEOTHERMAL POWERPLANT OPERATOR'S PRESIDENT RALPH BOEKER 60 YEARS OLD WAS APPOINTED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING PAUL PANKRATZ WHO CONTINUES AS CHAIRMAN 9401130172 940113 WHO'S NEWS LONDON EXCHANGE NAMES KEMPWELCH TO BE NEW CHAIRMAN LONDON THE LONDON STOCK EXCHANGE SELECTED JOHN KEMPWELCH AS ITS NEXT CHAIRMAN HOPING TO END A PERIOD OF UNCERTAINTY THAT BEGAN LAST SPRING WHEN ITS COMPUTERIZED SETTLEMENTSYSTEM PROJECT COLLAPSED MR KEMPWELCH 57 YEARS OLD CURRENTLY SENIOR PARTNER AT STOCKBROKERS CAZENOVE & CO WILL TAKE OVER JULY 14 FROM THE EXCHANGE'S CURRENT CHAIRMAN SIR ANDREW HUGH SMITH 63 WHO IS RETIRING MR KEMPWELCH HAS SERVED AS A DIRECTOR OF THE EXCHANGE SINCE 1991 HE BEGAN HIS CAREER WITH HOARE & CO IN 1954 MOVING TO CAZENOVE & CO IN 1959 WHERE HE HAS BEEN EVER SINCE SIR ANDREW ALSO HAS BEEN ACTING CHIEF EXECUTIVE SINCE FORMER CHIEF EXECUTIVE PETER RAWLINS RESIGNED MARCH 11 AFTER THE EXCHANGE PULLED THE PLUG ON A 350 MILLION 520 MILLION DECADELONG PROJECT TO CREATE AN AUTOMATED SETTLEMENT SYSTEM CALLED TAURUS MOST OF THE WORK WAS UNSALVAGEABLE AND THE EXCHANGE POSTED A PRETAX LOSS OF 119 MILLION FOR THE YEAR ENDED IN MARCH COMPARED WITH A YEAREARLIER PRETAX PROFIT OF 15 MILLION THE EXCHANGE LAST FALL APPOINTED MICHAEL LAWRENCE AS CHIEF EXECUTIVE EFFECTIVE FEB 1 AMID HOPES HE WOULD SPUR THE BOURSE'S MODERNIZATION EFFORTS MR LAWRENCE 53 IS FINANCE DIRECTOR OF PRUDENTIAL CORP BRITAIN'S LARGEST INSURER FOLLOWING THE TAURUS DEBACLE THE BANK OF ENGLAND TOOK OVER PRIMARY RESPONSIBILITY FOR THE CREATION OF A REPLACEMENT FOR THE SETTLEMENT SYSTEM BEFORE THE NEW SETTLEMENT SYSTEM DUBBED CREST BEGINS FUNCTIONING THE EXCHANGE PLANS TO MOVE IN JULY TO A 10DAY ROLLING SETTLEMENT THIS CHANGE IS CONSIDERED A MAJOR IMPROVEMENT FROM THE CURRENT 14DAY ACCOUNT PERIOD UNDER THE NEW SYSTEM TRADES WILL BE SETTLED CONTINUALLY ALBEIT WITH A 10DAY DELAY INSTEAD OF BEING GROUPED TOGETHER AND SETTLED EVERY 14 DAYS 9401130171 940113 MARKETING & MEDIA ADVERTISING REFRESHMENT BEARS MORE WEIGHT IN NEW CAMPAIGN FOR DIET COKE BY KEVIN GOLDMAN COCACOLA UNVEILED ITS LONGAWAITED NEW DIET COKE ADVERTISING CAMPAIGN AND IT APPEARS THE SOFT DRINK MAKER BORROWED A CREATIVE PAGE FROM RIVAL DIET PEPSI THE APPROACH IS A RADICAL DEPARTURE FROM DIET COKE'S EARLIER ADVERTISING WHICH WAS INTRODUCED IN 1982 WITH THE SUCCESSFUL JUST FOR THE TASTE OF IT SLOGAN SOME OF THE NEW DIET COKE SPOTS RELY ON SEX APPEAL ALBEIT WITH A WINK AND A NOD NOT UNLIKE COMMERCIALS FOR PEPSICO'S FLAGSHIP DIET BRAND PERHAPS NOT COINCIDENTALLY LEE GARFINKEL WHO WAS THE CREATIVE PERSONA BEHIND THE DIET PEPSI SPOTS IS NOW THE CREATIVE DIRECTOR AT DIET COKE'S NEW AGENCY THE ADS ARE THE FIRST CREATIVE WORK SINCE DIET COKE'S INEFFECTIVE TASTE IT ALL CAMPAIGN WAS INTRODUCED ON NEW YEAR'S DAY 1993 THAT SERIES WHICH FEATURED MONTAGES OF MINISTERS WHO SURF SURGEONS WHO SCULPT INSURANCE AGENTS WHO SPEED ON MOTORCYCLES WAS YANKED AFTER ONLY SIX WEEKS THE 60 MILLION ACCOUNT WAS LATER PLACED IN REVIEW AND INTERPUBLIC GROUP'S LINTASNEW YORK DIET COKE'S ONLY AD AGENCY SINCE THE BEVERAGE WAS INTRODUCED IN 1982 WAS FIRED THE NEW AGENCY LOWE & PARTNERS ANOTHER INTERPUBLIC AGENCY FACES THE CHALLENGE OF REVIVING THE BRAND'S SALES AS CONSUMERS ARE TURNING AWAY FROM DIET COLAS THE NEW DIET COKE SPOTS DON'T FOCUS ON CALORIES WHAT'S MORE THEY DON'T EVEN MENTION THE WORD TASTE WHICH WAS THE BACKBONE OF ALL PREVIOUS CAMPAIGNS WE USED TASTE' AS A PLANK VERY EFFECTIVELY SAYS NANCY GIBSON DIET COKE'S WORLDWIDE BRAND DIRECTOR WE WANTED A NEW MESSAGE THE SPOTS ARE MEANT TO BE AMUSING VIGNETTES EACH FEATURES AN OLD POPULAR SONG RANGING FROM LOUIS ARMSTRONG'S KISS TO BUILD A DREAM ON TO THE BAND'S ROCK CLASSIC THE WEIGHT TO ETTA JAMES'S I JUST WANNA MAKE LOVE TO YOU THE SPOTS ARE SIMILAR TO THE APPROACH TAKEN BY CREATIVE ARTISTS AGENCY THE HOLLYWOOD TALENT AGENCY THAT PRODUCED VIRTUALLY ALL OF THE ALWAYS ADS FOR COCACOLA CLASSIC THAT IS THERE ISN'T ONE JINGLE OR STORY LINE MOREOVER THE ADS SEEM UNRELATED TO EACH OTHER IN ONE A GAGGLE OF FEMALE SECRETARIES WHISPER TO ONE ANOTHER THAT IT IS 1130 AM TIME FOR THEIR DIET COKE BREAK THEY RUSH TO A WINDOW WHERE THEY CAN STARE AT A WELLCHISELED CONSTRUCTION WORKER TAKING OFF HIS SHIRT HE'S ON A BREAK GUZZLING DOWN THE SOFT DRINK THE WOMEN ARE PANTING THEY PROMISE TO LOOK AGAIN TOMORROW ANOTHER AD SHOWS A WOMAN PULLING UP TO A BILLIARD HALL IN A SLEEPY DUSTY RURAL TOWN SHE UNLOADS HER BOYFRIEND'S POSSESSIONS THROWING THEM AT HIM WHILE PUZZLED SENIOR CITIZENS LOOK ON THEN SHE CHUGS A DIET COKE TRIUMPHANTLY SPEEDING AWAY A THIRD SPOT SHOWS A BELLHOP KNOCKING ON THE DOOR OF A HONEYMOON SUITE WITH A DELIVERY OF TWO CANS OF THE SOFT DRINK ON ICE HE MAKES THE TRIP FOUR TIMES EACH TIME TO BE GREETED JUST BY THE HANDS OF A MAN GRABBING THE SODA UNLIKE PREVIOUS DIET COKE SPOTS WITH CELEBRITIES THAT INCLUDED ELTON JOHN AND PAULA ABDUL THE NEW COMMERCIALS ARE DECIDEDLY FREE OF WELLKNOWN PERSONALITIES WITH ONE EXCEPTION BOXER EVANDER HOLYFIELD APPEARS IN ONE AD TO THE UNLIKELY TUNE OF MAMA CASS ELLIOT CROONING DREAM A LITTLE DREAM OF ME EACH SPOT ENDS WITH THE SLOGAN THIS IS REFRESHMENT THE NEW CAMPAIGN RESULTED FROM EXTENSIVE RESEARCH WITH CONSUMERS WHO FELT THAT DIET COKE DOESN'T MEAN FAME AND FORTUNE SAYS MS GIBSON INSTEAD THE BEVERAGE IS A BRIEF IMPORTANT REFRESHING MOMENT TO THEIR DAY FAME AND FORTUNE WERE THE LINCHPINS OF PREVIOUS DIET COKE ADS TASTE IT ALL WAS BUILT ON WANTING IT ALL SAYS MS GIBSON THIS IS BUILT ON WHAT WE HAVE SHE SAYS THAT TASTE IT ALL WASN'T AS EFFECTIVE AS WE WANTED IT TO BE IN FACT COKE BOTTLERS DISTINCTLY DISLIKED THE CAMPAIGN DIET COKE SAYS MS GIBSON NOW EXISTS IN A DIFFERENT WORLD FROM WHEN IT WAS INTRODUCED THE FOCUS NOW IS ON THE SIMPLER PLEASURES WITH FAMILIES AND FRIENDS SHE SAYS CONSUMERS DRINK DIET COKE WHEN THEY WANT TO PUSH THE HOLD BUTTON ON THE WORLD TO TAKE A MENTAL BREAK THE IDEA OF DIET COKE IS THAT IT IS AN IMPORTANT MOMENT OF REFRESHMENT IN THE COURSE OF A HECTIC DAY AN INDUSTRY OFFICIAL WHO DIDN'T WANT TO BE QUOTED BY NAME SAYS THESE NEW ADS ARE BEING MET WITH LITTLE ENTHUSIASM FROM BOTTLERS MS GIBSON SAYS SHE VIGOROUSLY OBJECTS TO THAT ALLEGATION THE RESPONSE IS STRONG SHE SAYS FROM THE BOTTLER TO THE ROUTE DRIVERS IT WILL BE HARD TO AVOID THE NEW SPOTS WHICH WILL BEGIN AIRING ON TURNER BROADCASTING SYSTEM'S TBS SUPER CHANNEL JAN 22 DURING THE GOLDEN GLOBE AWARDS SOME OF THE PRIMETIME SHOWS FOR WHICH DIET COKE BOUGHT TIME ARE NORTHERN EXPOSURE MURPHY BROWN SEINFELD AND MELROSE PLACE ALTHOUGH MS GIBSON DECLINES TO COMMENT ON THE AD BUDGET IT IS EXPECTED TO BE AN INCREASE FROM THE PREVIOUS 60 MILLION IN THE WINTER OLYMPICS ALONE DIET COKE PURCHASED 115 SPOTS DIET COKE PRODUCED A WHIMSICAL SPOT ESPECIALLY FOR THE OLYMPICS WHICH SHOWS A VIDEOTAPE OF A FOURMEMBER LUGE TEAM SPEEDING DOWN THE COURSE WHEN THE TAPE IS SHOWN IN SLOW MOTION THE TEAM IS SEEN CHUGGING DOWN DIET COKES AND MUGGING TO THE CAMERA SALES OF BOTH DIET COKE AND DIET PEPSI HAVE SLIPPED RECENTLY SUPERMARKET SALES OF DIET COKE FELL 14 TO 8835 MILLION IN THE 40WEEK PERIOD ENDED OCT 3 1993 ACCORDING TO INFORMATION RESOURCES' INFOSCAN SERVICE DIET PEPSI FARED WORSE SLIPPING 6 TO 6146 MILLION WHAT WE'RE SEEING IS MASSIVE FLOOR DROPPING OUT OF THE DIET MARKET AND THE MARKET DRYING UP SAYS JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST IN OLD GREENWICH CONN AS THE BABY BOOMER GENERATION HAS GROWN IT HAS GONE FROM BEVERAGE TO BEVERAGE WITH NO LOYALTY THEY HAVE GONE FROM TEAS WATERS SPORTS DRINKS AND JUICEADDED BEVERAGES BUT THE GENERATION HASN'T LANDED TO ONE OF THESE THE MARKET SPLINTERED AND THE DIET SOFT DRINK CATEGORY SUFFERED THE MOST ADVERTISING ISN'T THE ONLY MARKETING TOOL THAT'S CHANGING AT DIET COKE THE BEVERAGE'S BOTTLES AND CANS ARE UNDERGOING A REDESIGN BY YET ANOTHER AD AGENCY FALLON MCELLIGOTT NO DATE HAS BEEN GIVEN FOR WHEN THE FACELIFT WILL BE READY THERE AREN'T ANY PLANS TO PLASTER DIET COKE'S NEW SLOGAN ON THE CANS THE WAY TASTE IT ALL WAS FOR A SHORT TIME LAST YEAR MS GIBSON SAYS DIET COKE TESTED THE NEW COMMERCIALS WITH AUDIENCES INCLUDING ONAIR TESTING IN TWO CITIES AND RECEIVED FAVORABLE RESPONSE THE NEW CAMPAIGN WILL BE IN ALL ENGLISHSPEAKING COUNTRIES IN NONENGLISH SPEAKING REGIONS THE DIET PRODUCT IS CALLED COKE LIGHT MAGAZINE ADVERTISING PAGES INCREASED 1 IN 1993 ACCORDING TO THE PUBLISHERS INFORMATION BUREAU A YEAR IN WHICH MANY PUBLISHERS BELIEVED TOTAL ADVERTISING WOULD SHRINK THE TINY BUT WELCOME GAIN INCLUDED TWO CONSECUTIVE QUARTERS OF DECLINE ADVERTISING PAGES WHICH HAD SLUMPED IN THE SECOND AND THIRD QUARTERS REBOUNDED IN THE FOURTH REVENUE FROM ADVERTISING IN 1993 WAS UP 6 TO 762 BILLION THE 1993 PACE WAS SLOWER THAN IN 1992 WHEN AD PAGES HAD INCREASED 24 AND AD REVENUE HAD RISEN 81 THE BIGGEST REVENUE GAINS CAME FROM ADVERTISERS IN DRUGS AND REMEDIES 229 BUSINESS AND CONSUMER SERVICES 205 DIRECT RESPONSE 166 AND RETAIL 163 THE SMALLEST GAINS CAME FROM AUTOMOTIVE ADVERTISERS 18 FOOD 18 AND APPAREL 3 SUPER BOWL SPOT NORWEGIAN CRUISE LINE JOINS THE LIST OF ADVERTISERS WHO HAVE PLUNKED DOWN 900000 FOR 30 SECONDS OF AD TIME DURING THE SUPER BOWL BROADCAST NORWEGIAN A UNIT OF KLOSTER CRUISE LTD IS BROADCASTING TWO 30SECOND SPOTS FROM OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN PART OF A 30 MILLION CAMPAIGN CALLED IT'S DIFFERENT OUT HERE 9401130170 940113 PEPPERAND SALT TO MAKE SURE NO SUCKER IS SPARED BECOMES A MENTAL BLOCK 9401130169 940113 WHO'S NEWS AMGEN INC AMGEN INC THOUSAND OAKS CALIF LINDA R WUDL DIRECTOR OF QUALITY CONTROL WAS NAMED TO THE POST OF VICE PRESIDENT QUALITY ASSURANCE WITH THIS BIOTECHNOLOGY CONCERN DR WUDL 48 YEARS OLD SUCCEEDS DARYL HILL WHO EARLIER WAS APPOINTED SENIOR VICE PRESIDENT ASIA PACIFIC 9401130168 940113 WHO'S NEWS WINSTAR COMMUNICATIONS INC WINSTAR COMMUNICATIONS INC NEW YORK STEVEN G CHRUST 43 YEARS OLD WAS ELECTED A DIRECTOR OF THIS LONGDISTANCE CARRIER EXPANDING THE BOARD TO SIX MEMBERS MR CHRUST IS PRESIDENT OF SGC ADVISORY SERVICES INC A STAMFORD CONN MONEYMANAGEMENT COMPANY 9401130167 940113 WHO'S NEWS CIRCA PHARMACEUTICALS INC CIRCA PHARMACEUTICALS INC COPIAGUE NY STUART DEITEL 45 YEARS OLD WAS NAMED VICE PRESIDENT BUSINESS DEVELOPMENT AT THIS PHARMACEUTICAL PRODUCTS MANUFACTURER MR DEITEL SUCCEEDS WILLIAM TAAFFE WHO LEFT THE COMPANY TO BECOME PRESIDENT OF ICON CLINICAL RESEARCH INC A DRUG RESEARCH COMPANY BASED IN LIMERICK PA 9401130166 940113 WHO'S NEWS CYPRESS SEMICONDUCTOR CORP CYPRESS SEMICONDUCTOR CORP SAN JOSE CALIF EMMANUEL HERNANDEZ 38 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MICROCHIP MAKER MR HERNANDEZ PREVIOUSLY CYPRESS'S CONTROLLER SUCCEEDS PATRICK VERDERICO 49 WHO IS LEAVING CYPRESS TO BECOME CHIEF FINANCIAL OFFICER OF CREATIVE TECHNOLOGY LTD MILPITAS CALIF AS PREVIOUSLY ANNOUNCED 9401130165 940113 WHO'S NEWS NORTHERN TELECOM PRESIDENT FOR US TAKES AT&T POST BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NORTHERN TELECOM LTD STRUGGLING TO SHORE UP ITS US BUSINESS LOST A KEY EXECUTIVE TO ARCHRIVAL AMERICAN TELEPHONE & TELEGRAPH CO GERRY J BUTTERS 50 YEARS OLD THE PRESIDENT OF THE CANADIAN COMPANY'S US UNIT NORTHERN TELECOM INC WAS NAMED VICE PRESIDENT OF BUSINESS DEVELOPMENT AT AT&T'S NETWORK SYSTEMS UNIT A NEW POSITION THE AT&T UNIT IS NORTHERN TELECOM'S MAIN RIVAL IN THE US MARKET FOR SWITCHING AND TRANSMISSION EQUIPMENT GERRY'S A LOSS A NORTHERN TELECOM SPOKESMAN ACKNOWLEDGED BUT NORTHERN'S TURNAROUND ISN'T GOING TO DEPEND ON ONE INDIVIDUAL NORTHERN TELECOM ALSO NAMED ONE OF ITS BOARD MEMBERS DONALD J SCHUENKE CHAIRMAN OF THE US UNIT THE TORONTOBASED TELECOMMUNICATIONS EQUIPMENT MAKER SAID MR SCHUENKE'S APPOINTMENT WILL BECOME EFFECTIVE FEB 1 PREVIOUSLY CHIEF EXECUTIVE OFFICER OF NORTHWESTERN MUTUAL LIFE INSURANCE CO OF MILWAUKEE MR SCHUENKE REMAINS CHAIRMAN OF THE INSURANCE COMPANY UNTIL THE END OF THIS MONTH HE SUCCEEDS ROY MERRILLS 59 WHO WILL RETIRE IN MARCH MR SCHUENKE HAS BEEN A MEMBER OF NORTHERN TELECOM'S BOARD FOR A DECADE AND WILL BE RESPONSIBLE FOR PLANNING THE US UNIT'S STRATEGY NORTHERN TELECOM PLAGUED BY SOFTWARE PROBLEMS AND DELIVERY DELAYS TO THE BABY BELLS HAS LOST MARKET SHARE TO AT&T IN THE HOTLY COMPETITIVE 6 BILLION US MARKET FOR DIGITAL SWITCHING SYSTEMS NORTHERN HAS CUT BACK MANUFACTURING AND CLOSED OR CONSOLIDATED SEVERAL PLANTS THE PARENT NORTHERN TELECOM LTD RECENTLY CONSOLIDATED INTO TWO GROUPS UNDER ITS NEW CHIEF EXECUTIVE JEAN MONTY THE COMPANY'S US UNIT IS PART OF ONE OF THE GROUPS NORTEL NORTH AMERICA THE OTHER GROUP IS NORTEL WORLD TRADE THE COMPANY ALSO NAMED DAVID A TWYVER 47 PRESIDENT OF WIRELESS SYSTEMS SUCCEEDING JOHN A ROTH 51 NOW PRESIDENT OF NORTEL NORTH AMERICA MR TWYVER WAS PREVIOUSLY GROUP VICE PRESIDENT WIRELESS SYSTEMS 9401130164 940113 INTERNATIONAL SWISS BANKRUPTCY FILINGS ZURICH BANKRUPTCY FILINGS IN 1993 BY BUSINESSES AND INDIVIDUALS IN SWITZERLAND EXCEEDED 10000 FOR THE FIRST TIME ACCORDING TO SCHWEIZERISHER VERBAND CREDITREFORM A PRIVATE CREDITMONITORING AGENCY THE NUMBER OF BUSINESSES FILING FOR BANKRUPTCY SURGED 16 TO 6014 FROM 5195 IN 1992 WHILE THE NUMBER OF INDIVIDUALS FILING CLIMBED 26 TO 4499 FROM 4383 TOTAL BANKRUPTCY FILINGS ROSE 98 TO 10513 FROM 9578 9401130163 940113 WHO'S NEWS LEGAL & GENERAL GROUP PLC LEGAL & GENERAL GROUP PLC LONDON SIR CHRISTOPHER HARDING CHAIRMAN OF BUSINESSSERVICES CONCERN BET PLC WAS NAMED CHAIRMAN OF THIS LIFE INSURANCE CONCERN MR HARDING 54 YEARS OLD SUCCEEDS SIR JAMES BALL WHO HAS ANNOUNCED HIS INTENTION TO RETIRE AT AGE 60 HE TURNED 60 IN JULY AN ASSISTANT FOR MR HARDING SAID THE EXECUTIVE HAS NO PLANS TO RESIGN AS CHAIRMAN OF BET BUT WILL ACT AS CHAIRMAN OF BOTH COMPANIES 9401130162 940113 WHO'S NEWS COMCAST CORP COMCAST CORP PHILADELPHIA THIS CABLE AND CELLULAR COMMUNICATIONS SYSTEMS OPERATOR NAMED TWO DIVISION DIRECTORS AS VICE PRESIDENTS THOMAS A HURLEY 33 YEARS OLD WAS NAMED VICE PRESIDENT OF PROGRAMMING AND JONATHAN R GORCHOW 33 BECOMES VICE PRESIDENT OF SALES PROMOTION ALSO MICHAEL H YOUNG 40 VICE PRESIDENT OF PROGRAMMING WAS NAMED SENIOR VICE PRESIDENT AND THOMAS R NATHAN 40 DEPUTY GENERAL COUNSEL WAS NAMED A VICE PRESIDENT 9401130161 940113 INTERNATIONAL JAPANESE FIRMS BUREAUCRATS CLASH OVER RETIREMENTS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE ECONOMIC SLOWDOWN IS PITTING JAPANESE BUREAUCRATS WHO WANT TO BUILD A BETTER TOMORROW AGAINST CORPORATIONS THAT JUST WANT TO MAKE IT THROUGH TODAY JAPAN'S LABOR MINISTRY WORRIED ABOUT THE DAY EARLY IN THE 21ST CENTURY WHEN ONE OUT OF FOUR JAPANESE WILL BE SENIOR CITIZENS WANTS TO PUSH THROUGH LEGISLATION THAT WILL KEEP PEOPLE ON THE JOB AS LONG AS POSSIBLE THE GOAL IS TO CREATE REVENUE TO HELP PAY INCREASINGLY HEFTY HOSPITAL BILLS AS JAPAN'S BABY BOOMER GENERATION AGES BUSINESSES HOWEVER ARE STUCK NOW WITH BLOATED PAYROLLS AMID THE WORST ECONOMIC SLUMP IN DECADES AND ARE PUSHING WORKERS INTO EARLY RETIREMENT THE ISSUE MADE THE HEADLINES THIS WEEK AFTER EXECUTIVES OF OKUMA CORP A MACHINE TOOL MAKER BASED IN JAPAN'S NORTHERN AICHI PREFECTURE WERE CALLED INTO A REGIONAL BRANCH OF THE LABOR MINISTRY TO EXPLAIN THEIR DECISION TO LOWER THE COMPANY'S MANDATORY RETIREMENT AGE TO 56 FROM 60 TO BE PUBLICLY CALLED IN BY THE BUREAUCRATS IN SUCH A FASHION IS THE JAPANESE CORPORATE EQUIVALENT OF BEING PILLORIED IN THE TOWN SQUARE THIS RUNS COUNTER TO THE POLICIES WE ARE TRYING TO PURSUE AS JAPAN'S SOCIETY AGES SAID A LABOR MINISTRY SPOKESMAN THE MINISTRY IS PREPARING TO SUBMIT TO PARLIAMENT IN ITS SPRING SESSION A BILL THAT WOULD MAKE IT LEGALLY BINDING FOR COMPANIES TO KEEP THE RETIREMENT AGE AT 60 LABOR MINISTRY STATISTICS SHOW THAT 944 OF JAPANESE COMPANIES STILL HAVE A RETIREMENT AGE OF 60 MINISTRY OFFICIALS SAY THEY WOULD PREFER COMPANIES TO PURSUE A POLICY OF VOLUNTARY RETIREMENTS RATHER THAN ACROSSTHEBOARD REDUCTIONS IN RETIREMENT AGES SO AS TO KEEP MORE PEOPLE ON THE JOB BUT THAT'S SOMETHING A LOT OF COMPANIES CURRENTLY CAN'T AFFORD OKUMA POSTED A PRETAX LOSS OF 57 BILLION YEN 506 MILLION IN THE YEAR ENDED MARCH 1993 AND TOYO KEIZAI A JAPANESE RESEARCH CONCERN EXPECTS OKUMA TO POST A LOSS OF 58 BILLION YEN IN THE CURRENT FISCAL YEAR WE'VE BEEN HIT HARD BY SLACK DEMAND FOR OUR PRODUCTS IN JAPAN AND THE STRONG YEN HAS HURT OUR EXPORTS SAID AN EXECUTIVE OF OKUMA WHICH SAYS IT PLANS TO PROCEED WITH THE PLAN DESPITE THE MINISTRY'S OBJECTIONS WE HOPE TO RAISE THE RETIREMENT AGE BACK TO 60 AS SOON AS WE COMPLETE RESTRUCTURING HE SAID THE EXECUTIVES DECLINED TO SAY HOW MANY WORKERS ARE LIKELY TO BE AFFECTED BY THE LOWER RETIREMENT AGE OTHER COMPANIES ARE ALSO SUFFERING FROM THE SAME HARDSHIPS AS A RESULT LABOR ISSUES MAKE NEWS IN JAPAN ON A DAILY BASIS THESE DAYS IN THE LATEST DEVELOPMENT JAPAN'S FEDERATION OF EMPLOYERS ASSOCIATIONS SAID WEDNESDAY THAT WORKERS WON'T BE OFFERED A WAGE INCREASE DURING THE ANNUAL SPRING NEGOTIATIONS THIS YEAR THE JAPANESE TRADE UNION CONFEDERATION COUNTERED ON THE EVENING NEWS WITH A PROMISE TO FIGHT FOR AS MUCH AS IT CAN GET SETTING THE STAGE FOR MORE LABOR DISPUTES 9401130160 940113 WHO'S NEWS QUICK & REILLY GROUP INC QUICK & REILLY GROUP INC NEW YORK MARK S BRANDIN 43 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING AND ADVERTISING OF THIS COMPANY'S QUICK & REILLY INC DISCOUNT BROKERAGE UNIT MR BRANDIN MOST RECENTLY EXECUTIVE VICE PRESIDENT CAPITAL MARKETS/TRADING AT DISCOUNT BROKER CHARLES SCHWAB & CO SUCCEEDS WILLIAM A COPPEL MR COPPEL 38 WAS NAMED VICE PRESIDENT OF CORPORATE ADMINISTRATION AND SPECIAL PROJECTS FOR QUICK & REILLY INC 9401130159 940113 MARKETING & MEDIA MARKETSCAN MINNESOTA MINING'S WOOL PADS GRAB SIZABLE CHUNK OF BUSINESS BY EBEN SHAPIRO MINNESOTA MINING IS CLEANING UP IN THE 80YEAROLD SOAP PAD BUSINESS BY APPLYING SPACEAGE TECHNOLOGY TO THE VEXING PROBLEM OF REMOVING BURNT MACARONI AND CHEESE BY TAPPING INTO ITS EXPERTISE IN ABRASIVES MINNESOTA MINING & MANUFACTURING CO'S NEW NEVER RUST WOOL PADS GRABBED A SIZABLE CHUNK OF THE 120 MILLION BUSINESS LAST YEAR LARGELY AT THE EXPENSE OF ITS TWO MAIN COMPETITORS MILES INC'S SOS PADS AND DIAL CORP'S BRILLO PADS ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE FOR THE 52 WEEKS ENDED DEC 5 SALES OF 3M'S SCOTCHBRITE NEVER RUST SOAP PADS IN SUPERMARKETS INCREASED 918 TO 185 MILLION OR 154 OF THE CATEGORY ACCORDING TO INFOSCAN SOS SALES DROPPED 14 TO 435 MILLION OR 362 OF THE MARKET WHILE BRILLO SALES FELL 68 TO 183 MILLION OR 152 MARKET SHARE MINNESOTA MINING'S CONSUMER RESEARCH HAD SHOWN THAT RUSTY SOAP PADS WERE A MAJOR SOURCE OF ANGST AMONG HOMEMAKERS SPARKING THE CREATION OF NEVER RUST PADS NOW 3M SCIENTISTS ARE GETTING READY TO MARKET A STEEL WOOLTYPE PAD THAT DOESN'T SCRATCH NONSTICK COOKWARE WHICH ACCOUNT FOR NEARLY THREEQUARTERS OF ALL POTS AND PANS SOLD MINNESOTA MINING EXPECTS THE NEW PRODUCT TO INCREASE THE LACKLUSTER CATEGORY'S SALES BY 15 A YEAR THERE HAD BEEN NO INNOVATION IN THE CATEGORY SINCE BRILLO INTRODUCED SOAPIMPREGNATED PADS IN 1917 SAYS MOE NOZARI VICE PRESIDENT OF 3M'S CONSUMER MARKETS DIVISION MINNESOTA MINING PLANS TO KEEP THE PRESSURE ON WITH MR NOZARI PROMISING MAJOR PRODUCT INTRODUCTIONS IN EACH OF THE NEXT THREE YEARS MINNESOTA MINING ALSO GREATLY OUTSPENT ITS RIVALS IN ADVERTISING LAST YEAR MR NOZARI ESTIMATES THAT 3M'S 30 MILLION AD BUDGET FOR SOAP PADS WAS FOUR TIMES THAT OF ITS TWO LARGEST RIVALS COMBINED THE MARKET LEADERS HAVE BEEN ASLEEP AT THE SWITCH SAYS JACK TROUT PRESIDENT OF TROUT & RIES A GREENWICH CONN MARKETING CONSULTING COMPANY YOU'VE GOT A BUNCH OF GUYS SITTING ON THEIR HANDS UNWILLING TO ATTACK THEMSELVES WITH A NEW IDEA THIS SCRATCHPROOF PAD IS A CLASSIC NEXTGENERATION PRODUCT NOT SURPRISINGLY RIVALS AREN'T EFFUSIVE ABOUT 3M'S PATENTPENDING NOSCRATCH TECHNOLOGY I DON'T THINK IT'S THE GREATEST THING SINCE SLICED BREAD GRUMPS ANDREW REICHLIN MARKETING MANAGER FOR CLEANING PRODUCTS AT DIAL THE MAKER OF BRILLO BUT DIAL HAS ALREADY DROPPED THE PRICE AND INCREASED THE SIZE OF A SIMILAR PRODUCT AND IT MAY BE GEARING UP TO MATCH 3M'S TECHNOLOGY HEAD ON WE HAVE AGGRESSIVE PLANS IS ALL MR REICHLIN WILL SAY MINNESOTA MINING'S OTHER MAIN RIVAL MILES THE MAKER OF MARKET LEADER SOS HAS TAKEN A DIFFERENT TACK ALTOGETHER CHEATING THEN BAILING OUT OF THE BUSINESS ENTIRELY LAST OCTOBER MILES AGREED TO PAY A 45 MILLION FINE AND PLEADED GUILTY TO ATTEMPTING TO ESTABLISH A PRICEFIXING SCHEME WITH DIAL DIAL INFORMED THE JUSTICE DEPARTMENT OF THE SCHEME AND COOPERATED WITH THE INVESTIGATION EARLIER THIS MONTH MILES AGREED TO SELL SOS TO CLOROX CO FOR AN AMOUNT THAT WASN'T DISCLOSED THE DEAL IS EXPECTED TO CLOSE NEXT MONTH MILES WON'T DISCUSS THE PRICEFIXING CASE BUT PEOPLE CLOSE TO 3M SAY THAT MILES ATTEMPTED THE SCHEME OUT OF CONCERN OVER 3M'S STEPPED UP PRESENCE 9401130158 940113 INTERNATIONAL BRITISH JOBLESS RATE DROPS LONDON UNEMPLOYMENT IN BRITAIN FELL TO A SEASONALLY ADJUSTED 98 OF THE WORK FORCE IN DECEMBER FROM 10 IN NOVEMBER ACCORDING TO PROVISIONAL ESTIMATES RELEASED BY THE UK DEPARTMENT OF EMPLOYMENT THE NUMBER OF SEASONALLY ADJUSTED JOBLESS WAS ESTIMATED TO HAVE FALLEN 46800 DURING DECEMBER AFTER DROPPING A REVISED 39000 IN NOVEMBER 9401130157 940113 BILL BLASS PLEDGES 10 MILLION NEW YORK FASHION DESIGNER BILL BLASS PLEDGED 10 MILLION TO THE NEW YORK PUBLIC LIBRARY ONE OF ITS LARGEST GIFTS EVER THE INSTITUTION ANNOUNCED HALF OF THE CONTRIBUTION IS EARMARKED FOR NEW TECHNOLOGY STAFF AND SERVICES IN THE PUBLIC CATALOG ROOM WITH THE REMAINDER GOING TO UNRESTRICTED ENDOWMENT THE CATALOG ROOM AT THE MIDTOWN MANHATTAN LANDMARK WILL BE NAMED AFTER MR BLASS WHO HAS BEEN A LIBRARY TRUSTEE SINCE 1986 9401130156 940113 WHO'S NEWS JOY TECHNOLOGIES INC JOY TECHNOLOGIES INC PITTSBURGH WILLIAM J SCOTT SR 50 YEARS OLD FORMERLY PRESIDENT OF ABB ENVIRONMENTAL SYSTEMS A UNIT OF ASEA BROWN BOVERI INC WAS NAMED SENIOR VICE PRESIDENT OF THIS MAKER OF MINING EQUIPMENT AND AIRPOLLUTION AND ASHHANDLING EQUIPMENT AS WELL AS PRESIDENT OF JOY'S ENVIRONMENTAL GROUP ONE OF THE COMPANY'S TWO MAIN BUSINESSES HE SUCCEEDS BRIAN J WATT WHO RESIGNED FROM THE TWO POSTS AT JOY IN AUGUST 1993 TO PURSUE OTHER INTERESTS 9401130154 940113 WHO'S NEWS WOOLWORTH CORP WOOLWORTH CORP NEW YORK LAURA T KIRSNER 48 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS RETAILER EFFECTIVE FEB 1 MS KIRSNER ASSISTANT CONTROLLER SINCE 1983 SUCCEEDS THOMAS E PAGE 65 WHO IS RETIRING SEPARATELY PHILIP H GEIER JR 58 WAS NAMED A DIRECTOR EFFECTIVE FEB 9 MR GEIER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE INTERPUBLIC GROUP OF COS FILLS A VACANCY ON THE 12MEMBER BOARD 9401130153 940113 INTERNATIONAL BANESTO PROSECUTOR TO SEEK HELP FROM BANK OF SPAIN MADRID SPAIN'S CHIEF PUBLIC PROSECUTOR SAID HE WILL REQUEST INFORMATION FROM THE BANK OF SPAIN AS THE FIRST STEP IN AN INVESTIGATION INTO WHETHER THE FORMER MANAGEMENT OF BANCO ESPANOL DE CREDITO COMMITTED ANY WRONGDOING THE BANK OF SPAIN OUSTED THE CHAIRMAN AND BOARD OF BANESTO AS SPAIN'S FOURTHLARGEST BANK IS KNOWN ON DEC 28 AS THE BANK'S TROUBLES BECAME CLEAR AT THE TIME BANK OF SPAIN GOV LUIS ANGEL ROJO SAID STATE INSPECTORS HAD FOUND NO INDICATION OF WRONGDOING BUT LATER INSPECTIONS OF BANESTO'S ACCOUNTS HAVE TURNED UP DOCUMENTS THAT WERE OFF LIMITS TO CENTRAL BANK INSPECTORS BEFORE THE TAKEOVER IF THESE DOCUMENTS FAIL TO SHOW EVIDENCE OF CRIMINAL OFFENSES THE PROSECUTOR'S OFFICE SAID IT WILL SHELVE THE INVESTIGATION MEANWHILE BANESTO'S CARETAKER CHAIRMAN ALFREDO SAENZ ASKED THE NATIONAL STOCK EXCHANGE COMMISSION NOT TO RESUME TRADING IN THE BANK'S SHARES THIS MONTH TO GIVE THE NEW MANAGEMENT TIME TO DRAW UP A DRAFT REORGANIZATION PLAN BANESTO MAY HAVE TO WRITE OFF ITS POTENTIAL LOSSES AGAINST CAPITAL AND RESERVES WHICH STOOD AT 359 BILLION PESETAS 248 BILLION ON JUNE 30 A WRITEDOWN COULD RENDER BANESTO'S SHARES ALMOST WORTHLESS A FACT THAT COMMISSION OFFICIALS SAID HOLDERS SHOULD KNOW BEFORE TRADING IN THE BANK'S SHARES RESUMES 9401130152 940113 CAMDEN PROPERTY CREDIT LINE HOUSTON CAMDEN PROPERTY TRUST SAID IT ARRANGED A 75 MILLION CREDIT LINE IT WOULDN'T IDENTIFY THE LENDER THE NEW LOAN INCREASES THE COMPANY'S CREDIT LINES TO 135 MILLION OF WHICH 753 MILLION IS CURRENTLY UNUSED THE REAL ESTATE INVESTMENT TRUST SAID THE LOAN WHICH WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE ONEMONTH LONDON INTERBANK OFFERED RATE OR LIBOR WILL ENABLE IT TO ADD MULTIFAMILY PROPERTIES TO ITS PORTFOLIO 9401130151 940113 ASARCO SELLS ITS STAKE IN FIRM NEW YORK ASARCO INC SAID IT HAS SOLD ITS REMAINING 453 INTEREST IN ASARCO AUSTRALIA LTD FOR 795 MILLION THE SALE OF ASARCO'S 665 MILLION SHARES IN THE COMPANY WILL RESULT IN A PRETAX GAIN OF 587 MILLION ASARCO SAID THE MINING AND CHEMICAL CONCERN SAID IT WILL USE PROCEEDS FROM THE SALE TO REDUCE DEBT ASARCO AUSTRALIA A SEPARATE PUBLICLY TRADED COMPANY OPERATES TWO GOLD MINES IN WESTERN AUSTRALIA THAT PRODUCED ABOUT 110000 TROY OUNCES OF GOLD IN 1992 9401130150 940113 CREDIT MARKETS TREASURY 30YEAR BOND YIELD DECLINES TO 618 LOWEST IN A MONTH ON SUBDUED INFLATION REPORT BY THOMAS T VOGEL JR AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR THE MOMENT AT LEAST THE TREASURY BOND MARKET IS RUNNING WITH THE BULLS AND YESTERDAY WAS NO EXCEPTION EVER SINCE LAST FRIDAY WHEN A WEAKERTHANEXPECTED EMPLOYMENT REPORT BOOSTED THE BENCHMARK 30YEAR TREASURY BOND MORE THAN 1 1/2 POINTS INVESTORS HAVE BEEN GETTING BOLDER THEY ARE REGAINING THE CONFIDENCE THEY LOST IN THE FOURTH QUARTER OF LAST YEAR WHEN IT SEEMED AS IF EVERY ECONOMIC REPORT SHOWED THE US ECONOMY STARTING TO SPEED UP BUT WITH RECENT REPORTS SUGGESTING THAT THE ECONOMY MAY NOT GROW AS MUCH IN THE FIRST QUARTER AS IT DID AT THE END OF LAST YEAR OPTIMISM IS RETURNING TO THE MARKET ALBEIT CAUTIOUSLY YESTERDAY A REPORT SHOWING SUBDUED INFLATION FOR DECEMBER BOOSTED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH 1000 FACE VALUE TO 100 28/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 618 FROM 623 THE LOWEST YIELD IN A MONTH BOND INVESTORS GREET NEWS OF LOW INFLATION BECAUSE INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN YESTERDAY THE LABOR DEPARTMENT SAID THE PRODUCER PRICE INDEX FELL 01 IN DECEMBER EXCLUDING VOLATILE FOOD AND ENERGY PRICES THE CORE PPI WAS UP 02 COMPANIES TOOK ADVANTAGE OF THE LOWER RATES BY SELLING MORE THAN 2 BILLION OF NEW BONDS INCLUDING A 300 MILLION CANADIAN OFFERING OF 20YEAR BONDS BY ROGERS CABLESYSTEMS A CABLETV FIRM ALSO CONTRIBUTING TO THE OPTIMISM IN THE US TREASURY MARKET IS THE BELIEF AMONG INVESTORS THAT THE FEDERAL RESERVE IS NOT GOING TO MOVE TO RAISE SHORTTERM INTEREST RATES ANYTIME SOON TOWARD THE END OF LAST YEAR THERE WAS WIDESPREAD SPECULATION THAT THE FED WOULD MAKE A PREEMPTIVE STRIKE AGAINST INFLATIONARY PRESSURES BY RAISING SHORTTERM RATES EARLY THIS YEAR SO PREVALENT WAS THE SPECULATION AT THAT TIME THAT SEVERAL CLINTON ADMINISTRATION OFFICIALS WENT OUT OF THEIR WAY TO SAY WHY SUCH A MOVE COULD CHOKE THE ECONOMY AND POSSIBLY TRIGGER ANOTHER RECESSION BUT WITH YESTERDAY'S INFLATION REPORT INVESTORS GAINED MORE CONFIDENCE THAT IF THE FED IS GOING TO MAKE SUCH A MOVE IT WON'T BE SOON AS FAR AS WHERE THE MARKET PERCEIVES THE FED'S POLICY SAID MATTHEW ALEXY A GOVERNMENT TRADING STRATEGIST AT CS FIRST BOSTON CORP WE'VE DODGED THE BULLET AS FAR AS THE ECONOMY HEATING UP IN THIS QUARTER SAID MR ALEXY IT APPEARS THAT ECONOMIC GROWTH HAS NOT BEEN ACCELERATING AT AS RAPID A PACE AS INVESTORS HAD FEARED IN THE FOURTH QUARTER THE WHOLE IDEA WAS THAT THE ECONOMY WAS GETTING ONTO THE HIGHWAY AND GOING FROM 0 TO 50 MILES PER HOUR IN 10 SECONDS HE EXPLAINED BUT GOING FROM 50 TO 75 MILES PER HOUR COULD TAKE MUCH LONGER THE RESULT IS THAT INVESTORS AREN'T NEARLY AS WORRIED ABOUT THE ECONOMY AS THEY HAVE BEEN IN RECENT MONTHS INDEED SHORTTERM RATES ARE NEARING LEVELS NOT SEEN SINCE OCTOBER WHEN THREEMONTH TREASURY BILL RATES HIT THEIR LOWEST LEVELS SINCE THE 1960S YESTERDAY FOR EXAMPLE THE TWOYEAR NOTE YIELDED 402 THE LOWEST SINCE OCT 29 MR ALEXY THINKS LONGTERM RATES MAY FOLLOW WITH THE 30YEAR BOND YIELD DROPPING BELOW 6 BY THE END OF THE MONTH ONE CHICAGO BOND SALESMAN SAYS CUSTOMERS WERE FRUSTRATED THAT THE MARKET GOT AWAY FROM THEM YESTERDAY BEFORE THEY HAD A CHANCE TO BUY MOST OF THE MOVE HIGHER TOOK PLACE BEFORE 1 PM I DETECT SOME REAL FRUSTRATION FROM PEOPLE WHICH TELLS ME WE STILL HAVE ROOM TO GO THE SALESMAN SAID MANY MONEY MANAGERS WHO ARE STILL WARY ABOUT THE MARKET AND EXPECT INTEREST RATES TO RISE A BIT THIS YEAR WERE FORCED INTO THE MARKET YESTERDAY BECAUSE THEY HAD PILES OF CASH THEY HAD TO INVEST CARY LEAHEY SENIOR FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS INC SAYS FUND MANAGERS HAVEN'T CHANGED THEIR VIEWS OF THE MARKET THAT DRASTICALLY AND MOST REMAIN GUARDED BUT MANY PARTICULARLY MUTUAL FUND MANAGERS HAVE BEEN OVERWHELMED WITH CASH THEY NEED TO INVEST WHEN ALL THESE FLOWS SWARMED INTO THE MARKET PRICES SOARED INVESTORS ARE GETTING LULLED INTO A SENSE THAT YOU NEVER LOSE MONEY IN THE FINANCIAL MARKETS MR LEAHEY SAID SO THEY ARE THROWING MONEY AT MANAGERS AND THESE MANAGERS HAVE TO PUT THE MONEY TO WORK THERE IS STILL A LOT OF UNCERTAINTY IN THE BOND MARKETS SAID MR ALEXY OF CS FIRST BOSTON A SURPRISINGLY STRONG ECONOMIC REPORT COULD QUICKLY CHANGE SENTIMENTS TODAY THE GOVERNMENT IS SLATED TO RELEASE THE CONSUMER PRICE INDEX FOR DECEMBER THE AVERAGE OF ESTIMATES OF ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A 02 INCREASE IN THE CPI AND A 03 INCREASE EXCLUDING FOOD AND ENERGY PRICES THE SAME INCREASES SEEN IN NOVEMBER MR ALEXY OF CS FIRST BOSTON SAID BOND PRICES COULD RISE EVEN FURTHER IF THE REPORT SHOWS AN INCREASE AT OR BELOW THE CONSENSUS YESTERDAY'S BUYING INVOLVED A BROADER GROUP OF INVESTORS THAN THOSE SEEN LATE LAST WEEK WHEN THE EMPLOYMENT NEWS HIT THE MARKET MANY MANAGERS WERE POISED TO ENTER THE MARKET AS SOON AS SIGNS OF WEAKER FIRST QUARTER GROWTH WERE APPARENT BUT WITH LATE FOURTHQUARTER NUMBERS ALREADY SHOWING THE ECONOMY IS NOT YET BOOMING BUYERS STEPPED IN BUT PRICES ALSO WERE LIFTED BY TRANSACTIONS INVOLVING SPECULATIVE ACCOUNTS MANY OF WHOM WERE FORCED TO COVER SHORT POSITIONS IN A SHORT SALE A DEALER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT LATER AT A LOWER PRICE DEALERS COVER SHORTS WHEN THEY BUY BACK THESE BORROWED SECURITIES PROFITING IF THE PRICES HAVE DROPPED IN THE MEANTIME THE CORPORATE BOND MARKET RALLIED IN STEP WITH TREASURYS AS ISSUERS GRABBED THE OPPORTUNITY TO SELL OVER 2 BILLION OF NEW SECURITIES AMONG THE ISSUERS WAS UNION ELECTRIC CO TWO PNC BANK CORP SUBSIDIARIES CAROLINA POWER & LIGHT CO KANSAS GAS & ELECTRIC CO AND SMITH BARNEY SHEARSON HOLDINGS INC AMONG OTHERS THE MOST NOTABLE DEAL CAME FROM ROGERS CABLESYSTEMS LTD A SUBSIDIARY OF ROGERS COMMUNICATIONS CANADA'S LARGEST CABLE COMPANY WHICH SOLD CANADIAN DOLLARDEMONINATED JUNK BONDS THROUGH MERRILL LYNCH & CO THE COMPANY SOLD C300 MILLION OF 20YEAR BONDS AT PAR TO YIELD 965 THE BONDS NONCALLABLE FOR 10 YEARS ARE RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP SYNDICATE OFFICIALS SAID THEY EXPECTED OTHER FOREIGN COMPANIES WITH BELOWINVESTMENTGRADE RATINGS TO FOLLOW THE EXAMPLE AND SELL FOREIGNCURRENCYDENOMINATED BONDS IN THE US THESE ISSUES COULD COME FROM COMPANIES IN CANADA NEW ZEALAND FRANCE AND ITALY THEY SAID MUNICIPAL BONDS WERE CAUGHT UP IN THE SAME BUYING THAT BOOSTED TREASURY ISSUES THE REEDY CREEK FLA IMPROVEMENT DISTRICT'S NEWLY FREED 5 OF 2014 BONDS WERE QUOTED AT 97 1/8 TO YIELD 520 WHEN A MERRILL LYNCH & CO GROUP BROUGHT THE DISTRICT'S 219 MILLION REFUNDING ISSUE TO THE MARKET TUESDAY THE BONDS WERE GIVEN A PRICE OF 9699 AND A 524 YIELD CHICAGO'S 575 OF 2023 BONDS WERE 3/8 POINT STRONGER AT 100 1/8 YIELDING 571 THE MORE THAN 2 BILLION OF MUNIS PRICED TUESDAY WERE WELL RECEIVED ISSUANCE SLOWED YESTERDAY BUT DEMAND REMAINED STRONG IN THE PRIMARY MARKET A GOLDMAN SACHS & CO GROUP PRICED THE ORLANDO UTILITIES COMMISSION FLA 1375 MILLION REFUNDING BONDS TO YIELD FROM 325 IN 1996 TO 532 IN 2020 THE ISSUE WAS OVERSUBSCRIBED MORTGAGE SECURITIES REALIZED ONLY SOME OF THE GAINS SEEN BY RALLYING TREASURYS ONE TRADER AT A PRIMARY DEALER'S MORTGAGE DESK SAID THERE WERE SELLERS OF 7 AND 7 1/2 COUPONS WHILE INVESTORS STEPPED IN TO BUY HIGH COUPONS SUCH AS 9 AND ABOVE THERE ALSO WAS BUYING OF CURRENT COUPONS BUT MOST ACCOUNTS WERE WAITING FOR A WELLDEFINED RATE PATTERN BEFORE ADDING TO THOSE POSITIONS NEAR THE CLOSE OF TRADING THE 6 1/2 SECURITIES FOR FEBRUARY SETTLEMENT WERE ALL UP 7/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION TRADED AT 100 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS WERE AT 100 10/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION CHANGED HANDS AT 100 6/32 AS FOR HIGHER COUPONS THE 9 ISSUES FROM ALL THREE AGENCIES WERE FLAT OR UP 1/32 NEAR THE CLOSE TWO NEW REALESTATE INVESTMENT CONDUITS TOTALING 870 MILLION WERE ANNOUNCED BOTH NEW DEALS ARE BACKED BY FREDDIE MAC PAPER ONE WITH A 6 COUPON AND THE OTHER WITH A 7 COUPON 9401130149 940113 PARKER & PARSLEY TO SELL STAKE MIDLAND TEXAS PARKER & PARSLEY PETROLEUM CO SAID IT AGREED TO SELL FOR 44 MILLION MOST OF ITS INTEREST IN THE SAN JUAN BASIN OF NEW MEXICO AND COLORADO TO MERIDEAN OIL PRODUCTION INC PARKER & PARSLEY SAID THE PROPERTIES WERE ACQUIRED AS PART OF AN ACQUISITION OF PROPERTIES FROM THE PRUENERGY PARTNERSHIPS WHICH CLOSED NOV 1 PARKER & PARSLEY SAID IT WON'T RECOGNIZE A GAIN OR LOSS ON THE SALE 9401130148 940113 WHO'S NEWS RESCARE INC RESCARE INC LOUISVILLE KY JEFF CROSS 40 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF OPERATIONS FOR THIS COMPANY'S DIVISION FOR PERSONS WITH DISABILITIES EFFECTIVE JAN 1 HE WAS PREVIOUSLY VICE PRESIDENT OF OPERATIONS RESCARE PROVIDES RESIDENTIAL TRAINING AND SUPPORT SERVICES FOR MENTALLY RETARDED PERSONS AND INDIVIDUALS WITH OTHER DEVELOPMENTAL DISABILITIES THE COMPANY ALSO OPERATES VOCATIONAL TRAINING CENTERS AND OWNS 68 OF HOME CARE AFFILIATES INC A CONCERN THAT PROVIDES HOME NURSING IN FOUR STATES 9401130147 940113 WEDNESDAY'S MARKETS BONDS SURGE AS FEARS EBB ON INFLATION STOCKS FINISH MIXED INDUSTRIALS FALL 168 THE DOLLAR DECLINES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SURGED AFTER AN INFLATION REPORT CALMED JITTERY INVESTORS STOCK PRICES WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 168 POINTS TO 384863 IN VERY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX EDGED UP 004 TO 47417 AND THE NASDAQ COMPOSITE INDEX CLIMBED 135 TO 78687 FALLING A FRACTION AWAY FROM A RECORD BUT DECLINING OIL PRICES PROPELLED THE DOW JONES TRANSPORTATION AVERAGE TO A RECORD THE INDEX OF 20 STOCKS ADVANCED 922 POINTS TO 182151 SMASHING A RECORD SET THREE DAYS AGO UNTIL YESTERDAY THE STOCK MARKET'S BIG GAINS HAD CAPTURED INVESTOR ATTENTION BUT IT WAS THE BOND MARKET THAT STOLE THE SPOTLIGHT YESTERDAY AFTER RALLYING MORE THAN ONE POINT ON NEWS THAT PRODUCER PRICES SLIPPED 01 IN DECEMBER THE GOVERNMENT'S 30YEAR BOND RETREATED MODESTLY LATE IN THE AFTERNOON FINISHING THE DAY WITH A STRONG GAIN THE YIELD ON THE ISSUE SLIPPED BELOW THE 620 LEVEL FOR THE FIRST TIME IN A MONTH ECONOMISTS SAID THAT WHILE THE PPI REPORT WAS IN LINE WITH EXPECTATIONS TRADERS BID UP BONDS MAINLY ON THE RECOGNITION THAT THE MARKET HAD SOLD OFF TOO SHARPLY IN RECENT WEEKS TRADERS ARE ALSO BETTING ON MORE GOOD INFLATION NEWS TODAY WHEN THE LABOR DEPARTMENT RELEASES ITS CONSUMER PRICE REPORT FOR DECEMBER MANY ANALYSTS ARE EXPECTING THE INDEX TO SHOW A GAIN OF 01 I DON'T THINK THE PRODUCER PRICE NUMBER SURPRISED ANYBODY BUT IT PROBABLY GAVE PEOPLE MORE CONFIDENCE THAT THE CONSUMER PRICE REPORT WILL BE RELATIVELY BENIGN SAID DON FINE CHIEF MARKET ANALYST AT CHASE SECURITIES MR FINE WHO IS LOOKING FOR A RISE OF 02 IN DECEMBER CONSUMER PRICES SAID IT'S HARD TO BE BEARISH ON BONDS WITH OIL PRICES FALLING FAVORABLE INFLATION DATA EMERGING AND AN ECONOMY THAT ISN'T EXPANDING TOO FAST WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 020 TO 11271 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3099 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1146 ISSUES ROSE AND 956 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/4 POINT OR OVER 750 FOR EACH 1000 FACE AMOUNT TO YIELD 618 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17337 MARKS AND 11220 YEN COMPARED WITH 17416 MARKS AND 11240 YEN TUESDAY 9401130146 940113 WHO'S NEWS CYPRUS AMAX MINERALS CO CYPRUS AMAX MINERALS CO DENVER FRANCIS J KANE 35 YEARS OLD WAS NAMED TO THE NEW POSITION OF TREASURER AND VICE PRESIDENT INVESTOR RELATIONS OF THIS MINING CONCERN MR KANE ASSUMES THE DUTIES OF TWO FORMER VICE PRESIDENTS WHO LEFT THE COMPANY LAST YEAR DENNIS C HAUGH FORMERLY TREASURER AND RICHARD H HAGMAN WHO PREVIOUSLY HEADED THE PUBLIC AND INVESTOR RELATIONS DEPARTMENT OPTED IN DECEMBER TO TAKE A RETIREMENT PACKAGE TRIGGERED BY THE PURCHASE OF AMAX INC BY CYPRUS MINERALS CO MR KANE JOINS CYPRUS AMAX FROM BEAR STEARNS & CO WHERE HE WAS ASSOCIATE DIRECTOR RELATIONSHIP OFFICER 9401130145 940113 ECONOMY EARNEDINCOME TAX CREDIT PROGRAM FACES INCREASED SCRUTINY AS IT EXPANDS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE OF THE BIGGEST AND MOST POPULAR ANTIPOVERTY PROGRAMS IS GETTING A HARD RETHINKING FOR 19 YEARS THE EARNEDINCOME TAX CREDIT HAS BEEN EMBRACED ACROSS THE POLITICAL SPECTRUM THE CREDIT USUALLY GIVEN IN AN ANNUAL LUMP SUM IS INTENDED SOLELY FOR THE WORKING POOR CONSERVATIVES ADMIRE IT BECAUSE IT REWARDS WORK LIBERALS LIKE IT BECAUSE IT HELPS THE NEEDY SOME 14 MILLION FAMILIES RECEIVED THE CREDIT LAST YEAR THE CREDIT ALSO HAS GROWN IN SIGNIFICANCE IT WAS VIRTUALLY THE ONLY DOMESTIC PROGRAM TO SEE A SUBSTANTIAL FUNDING INCREASE UNDER LAST YEAR'S BUDGET LAW A HUGE 50 ITS PRICE TAG THIS YEAR IS EXPECTED TO BE ROUGHLY 145 BILLION TWICE THE INTERIOR DEPARTMENT'S ENTIRE BUDGET IT ALSO IS EXPECTED TO BE A CORNERSTONE OF PRESIDENT CLINTON'S WELFAREREFORM PLAN BECAUSE IT MAKES LOWWAGE JOBS THE FIRST RUNG UP FROM WELFARE MORE ATTRACTIVE BUT ITS STANDING AS UNIMPEACHABLE SOCIAL POLICY MAY BE CHANGING NEW AGONIZING OVER THE BUDGET DEFICIT AND UNINTENDED CONSEQUENCES OF LAST YEAR'S EARNEDCREDIT EXPANSION HAVE PUT IT UNDER NEW SCRUTINY A BIGGER AND MORE EXPANSIVE EARNED CREDIT IS NOT ALWAYS BETTER WROTE MARVIN KOSTERS AN ANALYST AT THE AMERICAN ENTERPRISE INSTITUTE ONE GOAL OF LAST YEAR'S BUDGET LAW ACCORDING TO THE CLINTON ADMINISTRATION WAS TO PULL ALL FULLTIME WORKERS ABOVE THE POVERTY LINE THE MEASURE EXPANDED THE CREDIT TO A MAXIMUM OF 3370 IN 1996 FROM 1998 IN THE PRE1993 LAW THE VAST MAJORITY OF THE WORKING POOR RECEIVE THE CREDIT AFTER FILING THEIR INCOME TAX STATEMENTS THEY MAY ALSO RECEIVE THE CREDIT THROUGH THEIR WEEKLY PAYCHECKS THOUGH HARDLY ANYBODY DID THIS IN 1991 ADVOCATES FOR THE POOR WERE THRILLED WITH THE CHANGES THE EXPANDED CREDIT SAID THE LIBERAL CENTER ON BUDGET AND POLICY PRIORITIES MADE LAST YEAR'S BUDGET LAW THE MOST PROGRESSIVE OF ANY MAJOR PIECE OF TAX LEGISLATION IN DECADES BUT THE EXPANSION HAS RAISED SOME COMPLEX ECONOMIC ARGUMENTS SOME WONDER WHY FAMILIES THAT EARN AS MUCH AS 27000 GETTING INTO MIDDLECLASS TERRITORY ARE ELIGIBLE THE SIZE OF THE CREDIT INCREASES WITH INCOME REACHING THE 3370 MAXIMUM FOR A FAMILY WITH TWO CHILDREN EARNING 11000 THE CREDIT THEN SHRINKS WITH EACH ADDED DOLLAR OF INCOME BUT IT DOESN'T DISAPPEAR ENTIRELY UNTIL INCOME TOPS 27000 IT GOES BEYOND THE WORKING POOR ADMITS ROBERT SHAPIRO VICE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE NONETHELESS HE SUPPORTS THE PROGRAM WITH MINOR CHANGES SUCH AS IMPROVED ANTIFRAUD MEASURES SOME ECONOMISTS ARE TROUBLED BY HOW THE CREDIT AFFECTS PEOPLE WITH INCOMES BETWEEN 11000 AND 27000 REDUCTIONS IN THE CREDIT AS WAGES INCREASE IN THAT RANGE GIVE RECIPIENTS AN INCENTIVE TO WORK LESS THESE ANALYSTS SAY NO EMPIRICAL STUDIES OF THE ISSUE HAVE BEEN DONE HOWEVER SOME 37 OF FAMILIES RECEIVING THE CREDIT HAVE INCOMES ABOVE 20000 ACCORDING TO EDGAR BROWNING AN ECONOMIST AT TEXAS A&M UNIVERSITY HE SAYS THE CREDIT CREATES A SIGNIFICANT WORK DISINCENTIVE FOR MILLIONS OF FAMILIES WHO AREN'T POOR PEOPLE WHO DEAL WITH THE TAX CREDIT DISMISS SUCH NOTIONS AS IVORYTOWER THEORIZING IRRELEVANT TO THE WORKING POOR WHO STRUGGLE TO GET BY THOSE ECONOMISTS ARE OUT OF THEIR MINDS SAYS TYRONE BULLOCK AN ACCOUNTANT WHO PRACTICES IN THE LOWINCOME ANACOSTIA NEIGHBORHOOD IN WASHINGTON NONE OF MY CLIENTS HAVE EVER TURNED DOWN ANY RAISE OR OVERTIME TO GET MORE FROM THE EARNEDINCOME TAX CREDIT FOR MOST HE SAYS THE TAX CREDIT IS AN AFTERTHOUGHT LAST YEAR'S EXPANSION MAY MAKE THE PROGRAM AN INVITING TARGET AS THE SEARCH FOR BUDGET CUTS INTENSIFIES SOME CONSERVATIVES NOW LUMPING THE EARNED CREDIT IN WITH OTHER WELFARE SPENDING PROGRAMS SUCH AS FOOD STAMPS AND AID FOR FAMILIES WITH DEPENDENT CHILDREN HAVE SET THEIR SIGHTS ON CAPPING THEM ALL A WELFAREREFORM BILL ENDORSED BY 162 OF THE 175 HOUSE REPUBLICANS WOULD LIMIT THE GROWTH OF ALL WELFARE SPENDING INCLUDING THE EARNEDINCOME CREDIT TO 2 A YEAR AFTER INFLATION STEMMING THE GROWTH OF THE EARNEDINCOME CREDIT WAS VERY IMPORTANT PARTICULARLY WITH THE CONSERVATIVES SAYS REP THOMAS DELAY A TEXAS REPUBLICAN WHO BACKS THE BILL THEY WANTED A GUARANTEE THAT WHAT WE SAY ABOUT SAVING MONEY WILL ACTUALLY HAPPEN HIS STAFFERS BELIEVE THAT COMMITMENT TO REIN IN THE CREDIT ATTRACTED 30 TO 40 COSPONSORS TO THE BILL IT'S THE BEST OF A DEPLORABLE SET OF PROGRAMS SAYS ROBERT RECTOR AN ANALYST FOR THE HERITAGE FOUNDATION A CONSERVATIVE THINK TANK HE SAYS IT'S ONE OF THE BEST GOVERNMENT BENEFITS FOR THE POOR BECAUSE IT REWARDS WORK BUT HE DECRIES ITS HOUSEHOLD SPLITTING EFFECTS A COUPLE LIVING TOGETHER HE NOTES MAY DECIDE NOT TO MARRY SO AS TO QUALIFY SEPARATELY HE ALSO FRETS THAT THE SAME PEOPLE WHO RECEIVE THE EARNEDINCOME CREDIT WILL BENEFIT FROM PRESIDENT CLINTON'S PLAN FOR GOVERNMENT HEALTH COVERAGE THE PRESIDENT IS GOING TO BE GIVING OUT GOBS OF BENEFITS SAYS MR RECTOR HE PROPOSES USING FUNDS CURRENTLY EARMARKED FOR THE EARNEDINCOME CREDIT TO PAY FOR HEALTH BENEFITS 9401130144 940113 INTERNATIONAL GOP'S JOHN SEARS IS NOW CAMPAIGNING FOR CZECH GUARANTEES ON A STEEL MILL BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE A WORLD AWAY FROM HERE IN WASHINGTON DC POLITICAL IMPRESARIO JOHN P SEARS ONCE HELPED PUT A FORMER ACTOR NAMED RONALD REAGAN INTO THE WHITE HOUSE NOW HE WANTS TO DO SOMETHING MORE AUDACIOUS BUILD A STATEOFTHEART STEEL MILL HERE GET US INVESTORS TO FINANCE IT AND THE CZECH GOVERNMENT TO BACK IT WHILE KEEPING MAJORITY OWNERSHIP FOR HIMSELF AND HIS PARTNERS IT IS NOT JUST FOR US THAT WE DO THIS BUT FOR YOU THE WHOLE COUNTRY MR SEARS TELLS THREE DOZEN GUESTS SIPPING CHAMPAGNE AND WINE AT A RECEPTION HE IS THROWING IN A CENTURIESOLD FORMER CONVENT HERE LATER HE CONFIDES I SELL HOPE IN THE SHORT HISTORY OF CAPITALISM IN EASTERN EUROPE FEW PROJECTS ARE AS BIGOR AS UNUSUAL AS THAT WHICH MR SEARS IS PROPOSING TO CONSTRUCT SOME 300 MILES FROM PRAGUE IN SMOGENSHROUDED OSTRAVA HOME OF A MASSIVE BUT OUTDATED STEEL COMPLEX OWNED BY THE CZECH GOVERNMENT DOES IT MAKE SENSE TO BUILD A NEW STEEL MILL AT A COST OF AS MUCH AS 950 MILLION AT A TIME WHEN THE REST OF EUROPE IS CLOSING STEEL PLANTS BECAUSE OF OVERCAPACITY AND THE EUROPEAN UNION IS SCREAMING ABOUT CHEAP IMPORTS FROM THE EAST MR SEARS CLAIMS THAT HIS PROJECT COULD GENERATE NET INCOME OF AS MUCH AS 1067 MILLION A YEAR AND HIS BACKERS AREN'T SLOUCHES AMONG HIS ENTOURAGE ARE REPRESENTATIVES FROM INVESTMENT BANK DILLON READ & CO LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM CONTRACTORS BROWN & ROOT BIG JAPANESE STEEL PRODUCER NKK CORP ISHIKAWAJIMAHARIMA HEAVY INDUSTRIES CO AND STEELTRADING FIRM TOKYO BOEKI LTD BUT MANY OTHERS ARE SKEPTICAL WONDERING WHY A SUPPOSEDLY ATTRACTIVE PROJECT NEEDS A GOVERNMENT GUARANTEE JUST NOW IN FACT THE CZECH GOVERNMENT IS BEING FORCED THROUGH ITS GUARANTEES TO PAY 187 MILLION FOR PLANES THAT CZECHOSLOVAK AIRLINES CONTRACTED TO LEASE BUT NOW CAN'T AFFORD BANKERS AT THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT WHO KNOW OF MR SEARS'S PROJECT SAY THEY DON'T LIKE COMMERCIAL PROJECTS THAT NEED GOVERNMENT GUARANTEES MR SEARS ONCE CALLED AMERICA'S SHREWDEST POLITICAL CAMPAIGN MANAGER CONCEDES THAT AT THE CZECH MINISTRY OF INDUSTRY AND TRADE I WAS ACCUSED FIRST OF BEING A FOOL AND SECONDLY OF TRYING TO ROB THE PLACE BUT THE MINISTRY NOW SAYS IT IS EVALUATING THE PROJECT AND CALLS IT AN INTERESTING IDEA THAT IT IS SERIOUSLY ENGAGED IN THE FACT THAT THE 53YEAROLD LOBBYIST HAS GOTTEN THIS FAR IS A TESTIMONY TO THE VALUE OF CONNECTIONS AND THE SEDUCTION OF DEALMAKING IN EMERGING MARKETS FOR ECONOMIES IN TRANSITION IT RAISES IMPORTANT QUESTIONS ABOUT HOW MUCH GOVERNMENT FINANCIAL SUPPORT SHOULD BE GIVEN TO PROJECTS THAT ARE ESSENTIALLY PRIVATE EVERYBODY HAS A PROJECT IN EASTERN EUROPE SAYS DENIS BOVIN VICE CHAIRMAN OF BEAR STEARNS & CO IN NEW YORK THERE ARE A THOUSAND OF THESE THINGS GOING ON ONLY A SMALL PERCENTAGE WILL SEE THE LIGHT OF DAY MR SEARS IS PROPOSING TO BUILD THE FIRST BIG MINIMILL IN ALL OF EUROPE EAST OR WEST MINIMILLS AREN'T NECESSARILY SMALL THEY JUST USE SCRAP INSTEAD OF IRON ORE TO MAKE FINISHED PRODUCTS MR SEARS SEES HANDSOME PROFITS PARTICULARLY FOR HIMSELF AND HIS WASHINGTON LAW PARTNER SOUTH AFRICAN JOEL HOPPENSTEIN MR SEARS AND SEVERAL PARTNERS WOULD OWN 65 OF THE MINIMILL WHILE PUTTING UP VIRTUALLY NO MONEY BESIDES EXPENSES THE 35OWNER NOVA HUT A HUGE PROFITABLE STEEL FIRM THE CZECH GOVERNMENT OWNS THROUGH ITS NATIONAL PROPERTY FUND WOULD PROVIDE 100 MILLION IN WORKING CAPITAL AS WELL AS THE LAND AND LABOR THE TOTAL COST ESTIMATED BETWEEN 650 MILLION AND 950 MILLION WOULD BE FINANCED THROUGH A LEASING STRUCTURE USING CZECH GOVERNMENTBACKED DEBT SOLD THROUGH DILLON READ IN THE US I'M PUTTING UP VERY LITTLE SAYS MR SEARS WHO NOTES HE HAS SPENT TIME AND ENERGY IT WAS MY IDEA THE FINANCING IN FACT IS A BIG MOTIVATION FOR THE PROJECT CZECHGOVERNMENTBACKED DEBT IS VERY HOT NOW AMONG INVESTORS ANITA MOLINO A DILLON READ SENIOR VICE PRESIDENT WORKING ON THE PROJECT SAYS HER CLIENTS ARE USED TO BUYING GOVERNMENTBACKED DEBT CHAINSMOKING MARLBOROS MR SEARS SAYS HE FIRST VISITED THENCZECHOSLOVAKIA IN THE 1960S BEFORE HE BECAME AN INTIMATE OF US POLITICAL FIGURES AND RAN THE PRESIDENTIAL CAMPAIGNS OF RICHARD NIXON AND THEN RONALD REAGAN IN 1991 MR SEARS BROUGHT AN OLD FRIEND FROM JAPAN A STEEL MARKETING MAN NAMED TAKESHI UE MANAGING DIRECTOR OF TOKYO BOEKI DEVELOPMENT LTD WHICH IS DISTANTLY RELATED TO TOKYO BOEKI LTD ONE OF JAPAN'S SMALLER TRADING COMPANIES INSPIRED BY CZECH GOVERNMENT OFFICIALS WHO CAME TO JAPAN SOLICITING INVESTMENT THEY HATCHED A PLAN TO MAKE LOWCOST HIGHQUALITY STEEL FOR EXPORT IN OSTRAVA NOVA HUT GENERAL MANAGER SVATOPLUK VELKOBORSKY 62 WANTED TO UPDATE THE 50YEAROLD MILL THE YOUNGEST OF THREE ANCIENT STEEL COMPLEXES NOT FAR FROM THE POLISH BORDER WHICH DESPERATELY NEED NEW TECHNOLOGY AND RESTRUCTURING BUT MR SEARS AND MR UE INITIALLY OFFERED EQUIPMENT NOT MONEY EVEN NOW MR VELKOBORSKY SOUNDS SLIGHTLY INCREDULOUS WE HAVE SEVERAL NEWSPAPER STORIES ABOUT MR SEARS HE SAYS LAYING THEM OUT ON A TABLE IN HIS OFFICE BUT WE ARE NOT REALLY SURE HE IS THE SAME ONE FOR FINANCING MR SEARS TURNED TO A BUSINESSMAN HE HAD MET RECENTLY RICHARD W FISCHER OF DICK FISCHER DEVELOPMENT SEATTLE AND ANCHORAGE MR FISCHER HAD BUILT US GOVERNMENT PROJECTS WITH LEASEPURCHASE FINANCING RAISED BY DILLON READ SUCH TRANSACTIONS INVOLVE A PRIVATE DEVELOPER BUILDING A PROJECT WITH GOVERNMENTSECURED DEBT AND LEASING IT TO A GOVERNMENT BUT DILLON READ HASN'T ANY OFFICES IN EASTERN EUROPE AND NEVER HAS DONE A TRANSACTION IN THE REGION MR FISCHER NEVER HAS BUILT A STEEL PLANT BUT I'VE BUILT LOTS OF OTHER THINGS HE SAYS THERE'S ANOTHER PROBLEM JAPAN HAS A TACIT AGREEMENT NOT TO ADD STEEL CAPACITY TO EUROPE WE TAKE THE POSITION THAT THIS IS NOT A NEW MILL IT'S A REPLACEMENT MILL SAYS MR SEARS THE WRITTEN PROPOSAL FOR THE PLANT ENVISIONS EXPORTS TO THE US ASIA AND THE MIDDLE EAST BUT ULTIMATELY MR UE SAYS WESTERN EUROPE IS THE TARGET THE CZECHS WORRY HOW EXPORTING CHEAP STEEL WILL AFFECT THEIR CHANCES FOR EUROPEAN UNION MEMBERSHIP A YEAR AGO IN FACT THE EU SLAPPED THEM WITH TARIFF QUOTAS BUT MR UE DISMISSES THESE FEARS OVER TIME HE SAYS ECONOMICS WINS OVER POLITICS MR SEARS SAYS THE TRADE MINISTRY HAS PROMISED A DECISION ON THE MINIMILL DEAL BY SATURDAY 9401130143 940113 DONALDSON LUFKIN PARTNER ARE PROBED OVER BIDDING AT RTC LOAN AUCTION BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL GRAND JURY IS INVESTIGATING WHETHER DONALDSON LUFKIN & JENRETTE SECURITIES CORP OR ITS PARTNER IN A REAL ESTATE INVESTMENT VIOLATED BIDDING RULES IN A LOAN AUCTION CONDUCTED MORE THAN A YEAR AGO BY THE RESOLUTION TRUST CORP DONALDSON THE BROKERAGE ARM OF EQUITABLE COS PROVIDED FINANCING FOR LOMBARD ILLBASED GATEWAY CAPITAL ADVISORS' WINNING 667 MILLION BID IN LATE 1992 FOR NONPERFORMING LOANS ON APARTMENT BUILDINGS MADE BY THE NOW DEFUNCT HOME FEDERAL SAVINGS ASSOCIATION OF KANSAS CITY MO DLJ THEN FORMED A PARTNERSHIP WITH GATEWAY THAT ENTITLES IT TO A PORTION OF PROFITS FROM THE DEAL PRIOR TO BIDDING ON THE PORTFOLIO WHICH CARRIED AN ORIGINAL BOOK VALUE OF 112 MILLION ALL POTENTIAL BUYERS SIGNED A PLEDGE NOT TO COMMUNICATE WITH BORROWERS WHOSE LOANS WERE INCLUDED THE RTC WAS AIMING TO PREVENT BIDDERS FROM GAINING AN ADVANTAGE OVER RIVALS BY GATHERING ADDITIONAL FINANCIAL INFORMATION IN AN ATTEMPT TO MORE ACCURATELY ESTIMATE THE VALUE OF THE SOURED LOANS THE US JUSTICE DEPARTMENT IS TRYING TO DETERMINE WHETHER GATEWAY OR DLJ HAD IMPROPER DISCUSSIONS WITH ALBERT ICHELSON JR A DES MOINES IOWA REALESTATE SYNDICATOR WITH ABOUT 50 MILLION OF LOANS IN THE POOL ACCORDING TO THREE INDIVIDUALS FAMILIAR WITH THE INVESTIGATION THE FEDERAL BUREAU OF INVESTIGATION HAS SUBPOENAED RECORDS FROM GATEWAY DLJ AND AN RTC ADVISER ON THE SALE THERE WAS NO COLLUSION AND THERE WAS NO ADVANTAGE TO BE GAINED BY HAVING CONVERSATIONS WITH ANYONE RESPONDED BARRY FREEMAN A HIGHLAND PARK ILL LAWYER REPRESENTING GATEWAY IT'S PATHETIC THAT THERE IS EVEN A GRAND JURY INVESTIGATION I WOULD EXPECT THAT THE JUSTICE DEPARTMENT WHEN THEY HAVE ALL THE FACTS WILL DETERMINE THAT NO SUCH THING EXISTED A SPOKESWOMAN FOR DLJ DECLINED TO DISCUSS WHETHER THE FIRM'S INVOLVEMENT IS BEING INVESTIGATED OUR ROLE WAS TO FINANCE THE BID MADE BY THE PRINCIPAL GATEWAY SHE SAID WE'RE AWARE OF NOTHING THAT WOULD SUGGEST ANY IMPROPRIETIES IN THE BIDDING PROCESS A RESOLUTION TRUST CORP SPOKESMAN DECLINED TO COMMENT ON THE MATTER OTHER THAN TO SAY THAT THERE ARE A NUMBER OF CASES OUT THERE THAT ARE BEING LOOKED AT THE JUSTICE DEPARTMENT DECLINED TO COMMENT MR FREEMAN COMPLAINED THAT THE INVESTIGATION AROSE FROM ALLEGATIONS MADE BY AN INDIVIDUAL INDICTED ON A THRIFTRELATED MATTER WHOM HE WOULDN'T IDENTIFY WHO WAS LOOKING FOR A WAY TO FIND FAVOR WITH THE GOVERNMENT ALL OF THE FACTS POINT IN THE OPPOSITE DIRECTION OF WRONGDOING HE SAID IT'S VERY ANNOYING THAT THE GOVERNMENT WOULD BASE AN INVESTIGATION ON SOME IRRESPONSIBLE COMMENTARY BY SOMEONE WHO'S IN BIG TROUBLE MR FREEMAN ARGUED THAT A BIDDER WOULD HAVE HAD NOTHING TO GAIN BY TALKING TO MR ICHELSON BUT AT LEAST ONE OTHER BIDDER DISAGREED NOTING THAT NOT LONG BEFORE BIDS WERE DUE MR ICHELSON PLACED A DOZEN LIMITED PARTNERSHIPS THAT BORROWED THE MONEY INTO CHAPTER 11 BANKRUPTCY PROTECTION IF YOU TALKED TO HIM AND KNEW WHAT HE WAS GOING TO DO IN THE BANKRUPTCY PROCEEDINGS IT WOULD HAVE GIVEN YOU A BIG ADVANTAGE SAID ONE OF THE LOSING BIDDERS I REMEMBER STRETCHING OUR BID AS HIGH AS WE COULD IF WE KNEW THIS GUY ICHELSON WAS GOING TO COME OUT OF BANKRUPTCY WE COULD HAVE BID A HIGHER AMOUNT MR ICHELSON DECLINED TO COMMENT ON THE MATTER 9401130142 940113 MESA'S 428 MILLION UNOCAL SETTLEMENT ENDS SUIT TIED TO PICKENS' TAKEOVER TRY BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL MESA INC AGREED TO PAY UNOCAL CORP 428 MILLION TO SETTLE A SECURITIES LAWSUIT DATING BACK TO THE HOSTILE TAKEOVER DAYS OF THE MID1980S FOR UNOCAL THE SETTLEMENT REPRESENTS THE FINAL CHAPTER IN A TORTUOUS SAGA IN WHICH THE LOS ANGELES OIL COMPANY THWARTED A 1985 TAKEOVER EFFORT BY MESA CHAIRMAN BOONE PICKENS BY BUYING BACK SHARES AND LOADING UP WITH DEBT THAT TOOK YEARS TO REDUCE AND RESULTED IN NUMEROUS ASSET SALES AND STAFF CUTS FOR MESA THE SETTLEMENT ALSO CLOSES THE BOOK BUT LEAVES THE DEBTRIDDEN NATURALGAS EXPLORATION AND PRODUCTION COMPANY IN THE POSITION OF NEEDING TO BORROW MORE MONEY AT HIGH INTEREST RATES TO MAKE THE SETTLEMENT PAYMENT WE WANTED TO GET BACK IN THE GAME AND WE COULDN'T UNTIL WE GOT PAST UNOCAL SAID A MESA SPOKESMAN IN DALLAS THAT'S WHY WE SETTLED THE CASE MANY INVESTORS THOUGHT MESA WOULD HAVE LOST THE CASE IF IT HAD GONE TO TRIAL AS SCHEDULED NEXT MONTH UNOCAL WAS SEEKING 149 MILLION ABOUT 50 MILLION OF WHICH WAS INTEREST THE SETTLEMENT SPARKED A SURGE IN MESA STOCK WHICH JUMPED 17 TO 7 UP 1 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MESA SAID IT WOULD TAKE A CHARGE IN THE FOURTH QUARTER OF THIS YEAR ROUGHLY EQUAL TO THE SIZE OF THE SETTLEMENT IN THE 1992 FOURTH QUARTER MESA HAD A NET LOSS OF 175 MILLION OR 45 CENTS A SHARE ON REVENUE OF 785 MILLION THE COMPANY'S MAIN GOAL THIS YEAR IS TO REDUCE DEBT WHICH WILL RISE TO ABOUT 13 BILLION BECAUSE OF THE SETTLEMENT THE SPOKESMAN SAID MESA LAST YEAR COMPLETED A DEBT RESTRUCTURING THAT DELAYS SOME INTEREST PAYMENTS FOR SEVERAL YEARS THE SPOKESMAN WOULDN'T ELABORATE ON HOW MESA PLANS TO REDUCE DEBT BUT ACKNOWLEDGED THAT SOME KIND OF OFFERING OR SWAP INVOLVING COMMON SHARES WAS AMONG THE OPTIONS MESA AMASSED ITS DEBT BY MAKING CAPITAL INVESTMENTS AND PAYOUTS ON THE ASSUMPTION THAT NATURALGAS PRICES WOULD BE MUCH HIGHER THAN THEY ARE TODAY WE'RE ENTERING A NEW ERA THE SPOKESMAN SAID MESA WILL CONSIDER STEPPING UP EXPLORATION ACTIVITIES SOMETHING AT WHICH THE COMPANY HAS SUCCEEDED HISTORICALLY BUT HAS BEEN TOO CASHCONSTRAINED TO UNDERTAKE IN RECENT YEARS HE ADDED THE SIZE OF THE SETTLEMENT IS LESS SIGNIFICANT TO UNOCAL A MUCH LARGER COMPANY WHICH SAID IT WILL RECORD A PRETAX GAIN OF 33 MILLION IN THE 1994 FIRST QUARTER IN THE 1993 PERIOD UNOCAL HAD NET INCOME OF 11 MILLION OR ONE CENT A SHARE ON REVENUE OF 232 BILLION THE RESULTS INCLUDED A ONETIME CHARGE OF 130 MILLION UNOCAL SHARES FELL 375 CENTS TO 2825 IN COMPOSITE TRADING ON THE BIG BOARD ALTHOUGH THE TAKEOVER BATTLE AND ENSUING LITIGATION WAS ACRIMONIOUS A UNOCAL SPOKESMAN SAID TEMPERS HAVE CALMED MOST OF THE SIGNIFICANT PLAYERS INVOLVED WITH THIS ARE NO LONGER WITH US THE SPOKESMAN SAID THE COMPANY HAS CHANGED A LOT IN THE INTERVENING TIME HE SAID ADDING THAT THIS WAS JUST ONE MORE THING ON THE LAW DEPARTMENT'S DOCKET THE SUIT STEMMED FROM THE ACCUMULATION OF MORE THAN 13 OF UNOCAL STOCK IN 1985 BY MESA AND ITS SUBSEQUENT TENDER OFFER UNOCAL FENDED OFF THE BID WITH A RECAPITALIZATION PLAN AND MESA ULTIMATELY AGREED TO EXCHANGE SOME UNOCAL STOCK FOR UNOCAL BONDS MESA LATER SOLD THE BONDS UNOCAL'S DEBT SWELLED TO MORE THAN 6 BILLION THAT YEAR ABOUT 46 BILLION OF WHICH CAME FROM FIGHTING OFF MESA UNOCAL'S DEBT STOOD AT 34 BILLION AT THE END OF LAST SEPTEMBER UNOCAL SUED MESA IN 1986 ALLEGING THAT IT VIOLATED A FEDERAL LAW DESIGNED TO PREVENT COMPANY INSIDERS AND SHAREHOLDERS OF MORE THAN 10 OF A COMPANY'S STOCK FROM SEEKING SHORTSWING TRADING PROFITS THE LAW PROVIDES THAT A COMPANY MAY SUE TO RECOVER ANY SUCH PROFITS THAT INVESTORS GAIN FROM THE PURCHASE AND SALE OF ITS STOCK WITHIN A SIXMONTH PERIOD THE RULE IS AIMED AT CURBING SPECULATIVE ABUSE OF INSIDE INFORMATION MESA HAS ARGUED ALL ALONG THAT IT DIDN'T COMMIT ANY VIOLATIONS AND THAT THE SITUATION WAS SO HOSTILE THAT IT COULDN'T BE CONSIDERED AN INSIDER THE SUIT ADVANCED TO THE SUPREME COURT WHICH IN 1992 DECLINED TO REVIEW A LOWER COURT'S RULING THAT THE CASE SHOULD BE TRIED UNOCAL ALSO SAID THAT VARIOUS PARTNERSHIPS CONTROLLED BY TEXAS OIL MEN CYRIL WAGNER JR AND JACK E BROWN AGREED TO SETTLE THE SAME SUIT FOR 47 MILLION THEY HAD JOINED MR PICKENS IN HIS UNOCAL EFFORTS 9401130141 940113 WHO'S NEWS MCKESSON CORP MCKESSON CORP SAN FRANCISCO JAMES H SMITH 49 YEARS OLD WAS NAMED PRESIDENT OF MCKESSON DRUG CO THE LARGEST UNIT OF THIS DRUG DISTRIBUTION CONCERN MR SMITH A SENIOR VICE PRESIDENT OF AVNET INC WILL ASSUME HIS NEW JOB IN MIDFEBRUARY SUCCEEDING THOMAS B SIMONE 51 WHO WILL LEAVE THE COMPANY ON APRIL 1 9401130140 940113 WHO'S NEWS CR BARD INC CR BARD INC MURRAY HILL NJ GERALD L MESSERSCHMIDT WAS ELECTED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF SCIENTIFIC AFFAIRS DR MESSERSCHMIDT 43 WILL BE IN CHARGE OF THE MEDICALDEVICE MAKER'S REGULATORY AFFAIRS UNDER A SETTLEMENT REACHED IN OCTOBER WITH THE JUSTICE DEPARTMENT THE COMPANY AGREED TO PAY 61 MILLION IN FINES RELATED TO ITS SALE OF DEFECTIVE CATHETERS USED IN HEART SURGERY THE COMPANY WHICH IS UNDER EXTENSIVE GOVERNMENT SCRUTINY FOR FOUR YEARS ALSO AGREED TO CONSOLIDATE ITS REGULATORY AFFAIRS UNDER ONE EXECUTIVE 9401130139 940113 INTERNATIONAL FRENCH END SALE OF ARMS TO TAIWAN IN CHINA PACT BEIJING AP CHINA AND FRANCE PATCHED UP A YEARLONG RIFT WITH AN AGREEMENT THAT FRENCH COMPANIES WON'T SELL ANY MORE ARMS TO TAIWAN IN RETURN CHINA WILL END ITS DE FACTO BAN ON GIVING LUCRATIVE CONTRACTS TO FRENCH BUSINESSES WHICH LOST MILLIONS OF DOLLARS IN SALES AND A SUBWAY CONTRACT AFTER FRANCE AGREED TO SELL 60 MIRAGE FIGHTER PLANES TO TAIWAN IN LATE 1992 THE MIRAGE CONTRACT WILL BE HONORED AND SPARE PARTS WILL BE DELIVERED BUT THE FRENCH GOVERNMENT WON'T ALLOW FUTURE SALES FRENCH FOREIGN MINISTER ALAIN JUPPE TOLD A NEWS CONFERENCE IN PARIS TAIWAN A CHINESE ISLAND PROVINCE BECAME THE HAVEN IN 1949 OF THE NATIONALIST CHINESE AFTER THEY LOST TO THE COMMUNISTS IN A CIVIL WAR THEY STILL CLAIM TO BE THE LEGITIMATE GOVERNMENT OF CHINA THE MIRAGE SALE WAS APPROVED BY FRANCE'S FORMER SOCIALIST GOVERNMENT THE CONSERVATIVES WHO WON POWER IN FRENCH ELECTIONS LAST MARCH RESISTED CHINESE APPEALS TO CANCEL THE SALE BUT SHOWED THEIR CONCERN OVER THE DETERIORATED RELATIONSHIP BY SENDING A SPECIAL ENVOY IN DECEMBER TO HOLD SECRET TALKS WITH CHINESE LEADERS THE ACCORD WAS A RESULT OF THAT VISIT CHINA'S OFFICIAL XINHUA NEWS AGENCY SAID 9401130138 940113 AT&T TO PAY FINE ON CLEANUP NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL PAY A 175000 FINE AND PLEAD GUILTY TO A MISDEMEANOR CHARGE THAT IT VIOLATED THE FEDERAL CLEAN WATER ACT WHILE ATTEMPTING TO CLEAN UP CONTAMINATED GROUNDWATER AT A MANUFACTURING PLANT THE JUSTICE DEPARTMENT HAD CHARGED THAT AN AT&T MICROELECTRONICPARTS MANUFACTURING PLANT IN READING PA VIOLATED THE LAW IN 1991 EQUIPMENT USED TO FILTER GROUNDWATER AT THE PLANT DISCHARGED SMALL QUANTITIES OF POLLUTANTS ON THE PLANT'S PREMISES AT&T SAID WE'RE CHARACTERIZING IT AS A TECHNICAL VIOLATION A SPOKESMAN SAID 9401130137 940113 TECHNOLOGY PACIFIC TELESIS GROUP PLANS DIGITAL NETWORK SAN FRANCISCO PACIFIC TELESIS GROUP SAID ITS PACTEL CELLULAR UNIT WILL INVEST NEARLY 250 MILLION OVER FIVE YEARS TO BUILD A DIGITAL WIRELESS NETWORK IN CALIFORNIA AND GEORGIA PACTEL SAID THE NETWORK WILL INCORPORATE THE CODE DIVISION MULTIPLE ACCESS SYSTEM OR CDMA ONE OF TWO MAIN COMPETING DIGITAL STANDARDS BEING ADOPTED IN THE US A HOST OF COMPANIES INCLUDING SEVERAL BABY BELLS HAVE MADE VERBAL COMMITMENTS TO BACK CDMA CDMA SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE TO EACH CALL SIGNAL ALLOWING MORE CALLS TO OCCUPY THE SAME SPACE AND BE SPREAD OVER AN ENTIRE FREQUENCY BAND AS A RESULT THE CALLHANDLING CAPACITY IS BOOSTED BY 20 TIMES COMPARED WITH CONVENTIONAL ANALOG CELLULAR SYSTEMS OTHER COMPANIES SUCH AS MCCAW CELLULAR COMMUNICATIONS INC HOWEVER ARE SPENDING MILLIONS TO BUILD A COMPETING DIGITAL SYSTEM KNOWN AS TIME DIVISION MULTIPLE ACCESS OR TDMA THIS TECHNOLOGY PLACES EACH CALL SIGNAL INTO A TIME SLOT AND TRANSMITS IT WITHIN A SINGLE FREQUENCY TDMA IS HERE TODAY AND HAS BEEN SINCE LAST MARCH A MCCAW SPOKESMAN SAID JEFFREY HINES A PAINEWEBBER ANALYST SAYS IT IS TOO EARLY TO TELL WHICH OF THE COMPETING TECHNOLOGIES IS SUPERIOR BUT BECAUSE THE INCOMPATIBLE TECHNOLOGIES ARE ALREADY STARTING TO BE DEPLOYED THE CUSTOMER IS GOING TO LOSE OUT IN THE END VARIOUS FEATURES ON A TDMA DIGITAL PHONE FOR INSTANCE CAN'T ALWAYS BE USED IN A REGION WHERE A CDMA SYSTEM HAS BEEN DEPLOYED AND VICE VERSA 9401130136 940113 ECONOMY PRODUCER PRICES IN DECEMBER DECLINED 01 BIG DROP IN ENERGY PRICES HELPED KEEP INFLATION IN CHECK FOR FULL YEAR BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCER PRICES FELL 01 IN DECEMBER THE LABOR DEPARTMENT SAID DRIVEN DOWN BY SHARPLY FALLING ENERGY PRICES IT WAS LOWER ENERGY PRICES THAT HELPED KEEP WHOLESALE PRICES IN CHECK FOR THE ENTIRE YEAR LED BY A 168 DROP IN GASOLINE PRICES THE PRICE OF FINISHED GOODS EDGED UP ONLY 02 IN 1993 FOLLOWING A 16 INCREASE IN 1992 PRICES IN 1991 FELL 01 ENERGY PRICES IN DECEMBER FELL 35 BUT OTHER FACTORS ALSO HELPED KEEP INFLATION IN CHECK THE CORE RATE OF INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS ROSE BY A MODEST 02 IN DECEMBER AND 04 FOR THE YEAR THE BEST SHOWING SINCE 1974 WHEN THE DEPARTMENT BEGAN TRACKING THESE PRICES ANALYSTS SAY THE SLUGGISH WORLDWIDE ECONOMY AND THE SLACK US LABOR MARKET HAS KEPT THE LID ON PRICES AS WELL AND EXPECT THE GOOD INFLATION NEWS TO LAST AT LEAST FOR THE NEXT TWO YEARS ANALYSTS EXPECT THE NEWS ON CONSUMER PRICES SCHEDULED TO BE RELEASED TODAY TO BE JUST AS GOOD FOR THE 12 MONTHS ENDED IN NOVEMBER CONSUMER PRICES WERE UP JUST 27 THE FACT THAT PRICES ARE STEADY DESPITE RECENT IMPROVEMENTS IN ECONOMIC ACTIVITY IS PARTICULARLY ENCOURAGING IN RECENT MONTHS THE MANUFACTURING SECTOR HAS GAINED MOMENTUM AND RETAIL SALES ARE RISING CONSISTENTLY AS WELL THE FACT THAT INFLATION HAS BEEN WELLBEHAVED HAS HELPED TO EASE FEARS THAT THE FEDERAL RESERVE MAY BE READYING ITSELF FOR A BOOST IN INTEREST RATES DESPITE THE LOW INFLATION OVERALL LAST MONTH HAD A FEW LARGE INCREASES AT THE WHOLESALE LEVEL CAR PRICES ROSE 06 AND TOBACCO PRICES JUMPED 17 MUCH LIKE FOOD AND ENERGY THESE TWO PRODUCTS HAVE SHOWN VOLATILE CHANGES FROM MONTH TO MONTH PRICES OF INTERMEDIATE GOODS FELL 02 IN DECEMBER WHILE PRICES OF CRUDE GOODS DECLINED 22 WITHOUT FOOD AND ENERGY INTERMEDIATE GOODS EDGED UP 02 WHILE CRUDE GOODS ON THIS BASIS JUMPED 24 ANALYSTS NOTED THAT THIS RISE COMES ON TOP OF INCREASES OF 17 IN NOVEMBER AND 09 IN OCTOBER INFLATION AT THE CRUDE LEVEL OF PRODUCTION TYPICALLY DOESN'T FIND ITS WAY INTO FINISHED GOODS BUT THESE INCREASES ARE NEVERTHELESS WORTH WATCHING SAID MARILYN SCHAJA MONEYMARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE MOST OF THE RISE IN CRUDE PRICES HAS BEEN DUE TO INCREASES IN THE COST OF METAL AND LUMBER SHE SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9401130135 940113 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON KAREN R OSAR WAS NAMED VICE PRESIDENT AND TREASURER OF THIS INDUSTRIAL CORPORATION MS OSAR 44 YEARS OLD WAS PREVIOUSLY MANAGING DIRECTOR IN THE CORPORATE FINANCE GROUP OF JP MORGAN & CO SHE SUCCEEDS JAMES N CAUBLE WHO WAS PROMOTED LAST YEAR TO SENIOR VICE PRESIDENT FOR FINANCE AND ADMINISTRATION FOR TENNECO EUROPE LTD 9401130134 940113 CBOE SETS NASDAQ CONTRACT CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE SET A JAN 28 LAUNCH DATE TO TRADE OPTIONS CONTRACTS BASED ON AN INDEX OF STOCKS ON THE NASDAQ STOCK MARKET THE OPTIONS WILL WORK SIMILARLY TO THE CBOE'S POPULAR OPTIONS BASED ON INDEXES OF THE STANDARD & POOR'S 100 AND 500 LEADING EXCHANGETRADED STOCKS EXCEPT THAT THEY WILL TRACK 100 NONFINANCIAL NASDAQ STOCKS OPTIONS TRADED ON THE NASDAQ 100 WILL OFFER INVESTORS A NEW TOOL FOR PARTICIPATING IN THE HIGHLY TRADED ISSUES ON NASDAQ SAID CBOE CHAIRMAN ALGER B CHAPMAN 9401130133 940113 POLITICS & POLICY HILLARY CLINTON'S ROLE IN WHITEWATER FLAP POSES DIFFICULTIES FOR BOTH REPUBLICANS AND DEMOCRATS BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HILLARY RODHAM CLINTON'S CENTRAL ROLE IN THE WHITEWATER CONTROVERSY RAISES AWKWARD QUESTIONS FOR REPUBLICANS AND DEMOCRATS ALIKE AND BECAUSE THE FIRST LADY IS ALSO THE PRESIDENT'S CHIEF ADVOCATE ON HEALTHCARE REFORM THE STAKES GO BEYOND POLITICS TO POLICY IN WHAT HAS BECOME A PARTISAN GAME OF IMAGECONTROL REPUBLICANS ARE WARY OF SEEMING TOO AGGRESSIVE IN COMMENTING ON MRS CLINTON'S POSITION REP JIM LEACH OF IOWA THE SENIOR REPUBLICAN ON THE HOUSE BANKING COMMITTEE HAS CAREFULLY AVOIDED CRITICISM OF MRS CLINTON EVEN AS HE HAS PRESSED FOR A MORE VIGOROUS INVESTIGATION INTO THE CONTROVERSY AND SENATE GOP LEADER ROBERT DOLE OF KANSAS SCARCELY MENTIONED HER NAME IN A LONG NEWS CONFERENCE YESTERDAY IN WHICH HE CALLED FOR A SELECT COMMITTEE TO INVESTIGATE WHITEWATER IF THERE SHOULD BE A LESSON FROM 1992 IT IS THAT YOU'RE ON VERY TENUOUS GROUND WHEN YOU TRY TO DO A BUMPER SHOT AT AN OPPONENT THROUGH SOMEBODY'S FAMILY MEMBER SAYS GOP CONSULTANT BILL MCINTURFF DEMOCRATS MEANWHILE ARE CONCERNED THAT THE CONTROVERSY COULD HURT HER EFFECTIVENESS IN PROMOTING HEALTHCARE REFORM BEFORE CONGRESS AND WITHIN THE WHITE HOUSE THERE ARE TENSIONS OVER HER ROLE IN THE AFFAIR AND HER REPORTED RESISTANCE TO THE APPOINTMENT OF A SPECIAL COUNSEL TO INVESTIGATE THE MATTER AN APPOINTMENT PRESIDENT CLINTON FINALLY AGREED TO YESTERDAY AMID THIS BACKBITING BETSEY WRIGHT A FAMILY FRIEND AND MR CLINTON'S FORMER GUBERNATORIAL CHIEF OF STAFF ACCUSES WHITE HOUSE AIDES OF FUNDAMENTAL SEXISM FOR THEIR PORTRAYAL OF THE FIRST LADY IN COMMENTS TO JOURNALISTS IT WAS AN ACT OF DISLOYALTY MS WRIGHT SAID IN AN INTERVIEW YESTERDAY IT MADE BILL CLINTON LOOK LIKE A WIMP GIVEN THIS BLOODLETTING AMONG THE DEMOCRATS AND AGREEING WITH MR MCINTURFF THAT ATTACKS ON MRS CLINTON BACKFIRED IN THE PRESIDENTIAL CAMPAIGN MOST REPUBLICANS ARE BIDING THEIR TIME BUT GIVEN THE POLITICAL STAKES INCLUDING HEALTH CARE OTHERS ARE CLEARLY TEMPTED WE'RE PROBABLY BEING OVERLY PRUDENT IN FOLLOWING THE DICTUM DON'T ATTACK A LADY' SAYS FRED STEEPER GEORGE BUSH'S POLLSTER IN 1992 CITING RECENT FOCUS GROUPS OF RANKANDFILE VOTERS VINCE BREGLIO A REPUBLICAN POLLSTER SAYS MRS CLINTON IS TOO MUCH A PART OF THE POLICY APPARATUS OF THE ADMINISTRATION TO BE IGNORED WHEN PEOPLE LOOK AT THAT COUPLE WHAT THEY SEE IS MR OUTSIDE AND MS INSIDE MR BREGLIO SAYS THAT'S THE ROLE THEY'VE DEFINED FOR THEMSELVES IF THERE'S A PROBLEM OF THIS MAGNITUDE YOU SIMPLY CAN'T TURN YOUR BACK BECAUSE SHE'S THE PRESIDENT'S WIFE AS AN ARKANSAS ATTORNEY MRS CLINTON WAS BOTH A PARTNER IN THE WHITEWATER DEVELOPMENT CO REALESTATE INVESTMENT AND REPRESENTED NOWDEFUNCT MADISON GUARANTY SAVINGS & LOAN BEFORE STATE AUTHORITIES WHILE HER HUSBAND WAS GOVERNOR A MEMBER OF THE ROSE LAW FIRM IN LITTLE ROCK SHE AND ANOTHER ROSE ATTORNEY ACTED AS MADISON'S COUNSEL IN 1985 WHEN THE TROUBLED THRIFT WAS STRUGGLING TO MEET FEDERAL NETWORTH REQUIREMENTS AND IN A LETTER TO THE ARKANSAS SECURITIES DEPARTMENT MRS CLINTON ARGUED THAT MADISON SHOULD BE ALLOWED TO PURSUE AN UNUSUAL RECAPITALIZATION PLAN RELYING ON THE ISSUANCE OF PREFERRED STOCK IN THE S&L THIS IS NOT PRIMARILY ABOUT BILL CLINTON IT IS PRIMARILY ABOUT HILLARY CLINTON SAYS VIN WEBER A REPUBLICAN COMMENTATOR AND FORMER CONGRESSMAN WHO NOW LEADS THE CONSERVATIVE ADVOCACY GROUP EMPOWER AMERICA THE BIGGEST IMPLICATION OF ALL OF THIS IS HEALTH CARE ONE WAY OR ANOTHER IT WILL AFFECT THE HEALTHCARE DEBATE SAYS FRANK LUNTZ A CONSERVATIVE CONSULTANT AND FORMER POLLSTER FOR ROSS PEROT SHE'S THE MAIN CARRIER OF THE MESSAGE AND IF THE CARRIER GETS DAMAGED THE MESSAGE BECOMES A LOT LESS CREDIBLE THE TIMING IS ALL THE MORE AWKWARD SINCE THE ADMINISTRATION WAS HOPING THESE WEEKS WOULD HELP IT REGAIN LOST MOMENTUM ON THE HEALTHCARE ISSUE HAROLD ICKES WHO WAS RECENTLY BROUGHT INTO THE WHITE HOUSE TO HELP COORDINATE THE ADMINISTRATION'S HEALTHCARE CAMPAIGN WITH MRS CLINTON HAS INSTEAD BEEN INCREASINGLY DRAWN INTO THE WHITEWATER MANEUVERING AND TO THE EXTENT THAT MRS CLINTON IS DISTRACTED IT COULD STRENGTHEN THE HAND OF THOSE ARGUING FOR FURTHER COMPROMISE ON THE GOALS SET OUT IN HER REFORM PACKAGE IF IT TURNS OUT BADLY FOR HER SURE THE HEALTHCARE PUSH IS DAMAGED AND YOU END UP BEING COOPERIZED SAYS GOP THEORETICIAN KEVIN PHILLIPS REFERRING TO AN ALTERNATIVE REFORM BILL BACKED BY DEMOCRATIC REP JIM COOPER OF TENNESSEE THE STAKES ARE ENORMOUS THE DEMOCRATS' STAKE IN HEALTH CARE WAS IN FACT A DRIVING FORCE IN THE DECISION YESTERDAY TO APPOINT A SPECIAL COUNSEL AND THE WHITE HOUSE HOPES TO CLEAR THE DECKS AND RETURN TO A LEGISLATIVE AGENDA THAT IT BELIEVES IS ULTIMATELY CRITICAL TO THE PRESIDENT'S OWN POLITICAL CREDIBILITY HEALTH CARE IS ABOUT HIM AND HE WILL BE ABOUT HEALTH CARE SAID ONE OFFICIAL LATER SHE WILL GET CREDIT BUT IT ISN'T ABOUT HER MATCHED AGAINST HER CRITICS TOO IS MRS CLINTON'S CONSIDERABLE POPULARITY IF YOU ATTACK HILLARY CLINTON YOU'RE ATTACKING UPHILL SAYS DEMOCRATIC POLLSTER MARK MELLMAN AND IN THEIR CALCULATED RESTRAINT THUS FAR REPUBLICANS RISK BEING SEEN AS PATRONIZING IN THEIR ATTITUDE TOWARD WOMEN THE CHANGE SHE HAS BROUGHT ABOUT TO EVALUATING THE WIFE OF THE PRESIDENT IS THAT SHE IS ACCOUNTABLE FOR HERSELF SAYS HARRIETT WOODS WHO HEADS THE NATIONAL WOMEN'S POLITICAL CAUCUS WE WOMEN SEEK THE GLORY BUT WE ALSO HAVE TO TAKE THE CONSEQUENCES WHEN WE MAKE MISTAKES I DON'T KNOW IF SHE HAS MADE MISTAKES BUT IF SHE HAS I HOPE SHE WOULD BE EQUALLY ACCOUNTABLE JAMES M PERRY CONTRIBUTED TO THIS ARTICLE 9401130132 940113 POLITICS & POLICY US TO HOLD BACK NEW AID TO RUSSIA PENDING PLEDGES ON ECONOMIC REFORMS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE CLINTON ADMINISTRATION PLANS TO HOLD BACK COMMITMENTS OF NEW AID TO RUSSIA UNTIL IT WINS ASSURANCES THAT PRESIDENT BORIS YELTSIN INTENDS TO CONTINUE HIS MARKETORIENTED ECONOMIC REFORMS THE PACE OF SUPPORT WILL REFLECT THE PACE OF REFORM AN ADMINISTRATION OFFICIAL SAID SHORTLY BEFORE PRESIDENT CLINTON ARRIVED HERE TO DISCUSS ARMS CONTROL ECONOMICS AND FOREIGNPOLICY INTERESTS CONGRESS LAST FALL APPROPRIATED 25 BILLION IN AID TO THE FORMER SOVIET REPUBLICS MUCH OF WHICH HASN'T BEEN DISBURSED YET BUT THE US CLEARLY WANTS TO SEND A MESSAGE TO MR YELTSIN AND HIS OPPONENTS THAT THE US AS WELL AS OTHER WESTERN GOVERNMENTS AND THE INTERNATIONAL FINANCIAL INSTITUTIONS WANTS REASSURANCE THAT ECONOMIC REFORMS WILL CONTINUE THE VISIT COMES AT AN AWKWARD TIME MR YELTSIN IS FACING A NEW PARLIAMENT FILLED WITH MEMBERS WHO CHARGE THAT HIS EFFORTS TO MOVE THE NATION TO CAPITALISM FROM COMMUNISM ARE SHRINKING THE ECONOMY AND THROWING PEOPLE OUT OF WORK THE ADMINISTRATION IS LOOKING FOR SIGNS OF MR YELTSIN'S CONTINUING COMMITMENT TO POLICIES THAT ARE TURNING STATEOWNED BUSINESSES PRIVATE CUTTING SUBSIDIES AND DAMPING DOWN INFLATION THE SIGNS COULD INCLUDE KEEPING REFORM ADVOCATES IN THE GOVERNMENT AND ADHERENCE TO BUDGETARY POLICIES THAT REDUCE SUBSIDIES OF NONCOMPETITIVE HEAVY INDUSTRIES SUCH AS COAL AND STEEL INSTEAD OF SPENDING MONEY TO PROP UP INDUSTRIES THAT CAN'T COMPETE IN WORLD MARKETS THE US WANTS RUSSIA TO BOOST UNEMPLOYMENT AND OTHER SOCIAL BENEFITS NEEDED TO EASE THE PAIN OF ECONOMIC ADJUSTMENT THIS IS A CRITICAL JUNCTURE FOR THE RUSSIAN GOVERNMENT AND ITS REFORM POLICIES TREASURY SECRETARY LLOYD BENTSEN SAID AFTER A ROUND OF MEETINGS BUT IT'S ALSO A TEST OF WASHINGTON'S BELIEF THAT IT CAN USE WESTERN AID TO HELP MR YELTSIN STAY THE COURSE THAT HE'S ALREADY CHARTED IN ANY EVENT THE US ISN'T COMING WITH MUCH TO OFFER MR BENTSEN'S DISCUSSIONS FOCUSED ON WAYS TO SPEED THE DISTRIBUTION OF AID THAT ALREADY HAS BEEN PROMISED MR CLINTON IS PREPARED TO FLESH OUT THE US CONTRIBUTION TO A PREVIOUSLY ANNOUNCED PROGRAM TO AID EQUITY INVESTMENT IN NEWLY PRIVATE RUSSIAN BUSINESSES IN ADDITION THE US HAS BEEN TALKING TO THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND REPRESENTATIVES OF THE GROUP OF SEVEN INDUSTRIAL NATIONS ABOUT ACCELERATING AND ULTIMATELY EXPANDING AID TO RUSSIA IF REFORMS CONTINUE LATE LAST YEAR THE YELTSIN GOVERNMENT MADE SIGNIFICANT PROGRESS ON TWO FRONTS CONTROLLING INFLATION AND SLOWING THE GROWTH OF ITS BUDGET DEFICIT INFLATION FELL FROM 30 A MONTH EARLY IN THE YEAR TO 12 IN DECEMBER THE DIFFERENCE BETWEEN ANNUAL INFLATION OF 2229 AND 290 ACCORDING TO US TREASURY CALCULATIONS IN ADDITION IT HELD THE BUDGET DEFICIT TO 10 OF NATIONAL ECONOMIC OUTPUT DOWN FROM 18 PROJECTED IN THE MIDDLE OF THE YEAR AND THE 25 THE PARLIAMENT THOUGHT APPROPRIATE BUT THE IMPROVEMENTS TOOK PLACE AFTER MR YELTSIN DISMISSED THE PARLIAMENT LAST FALL GIVING HIM A FREER HAND TO CARRY OUT HIS POLICIES NOW IN THE FACE OF A MORE HOSTILE PARLIAMENT IT'S UNCLEAR WHAT THE PRESIDENT WANTS TO DO AND IT'S UNCLEAR WHAT THIS TEAM WILL BE SAID A WORLD BANK OFFICIAL IN MOSCOW THE DANGERS OF PROVIDING MORE AID UNTIL THE SITUATION HAS STABILIZED ARE OBVIOUS 9401130131 940113 WHO'S NEWS NUKOTE HOLDING INC NUKOTE HOLDING INC DALLAS PETER D KUNOTH 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF PRINTING SUPPLIES SUCCEEDING DAVID F BRIGANTE 41 WHO REMAINS CHIEF EXECUTIVE OFFICER MR KUNOTH WAS FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF AVERY DENNISON CORP AN OFFICE SUPPLIES COMPANY 9401130130 940113 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA SAID IT WOULD REFUND ANY INCREASES IN FOREIGNFUNDED COMPANIES' TAX PAYMENTS UNDER A NATIONAL TAX SYSTEM THAT TOOK EFFECT JAN 1 SEEKING TO ALLAY CONCERNS ABOUT THE CHANGES AMONG FOREIGN COMPANIES THE GOVERNMENT SAID THE TAX BURDEN FOR MOST OF THEM WON'T CHANGE MUCH PREFERENTIAL BUSINESSINCOME TAXES FOR FOREIGNFUNDED COMPANIES REMAIN ON THE BOOKS BUT SALES LEVIES HAVE BEEN REPLACED BY A 17 VALUEADDED TAX AN EXCISE TAX AND A BUSINESS TAX ON SERVICES THAT APPLY TO FOREIGN AND DOMESTIC FIRMS ALIKE THE PROMISED REFUNDS WILL APPLY ONLY TO COMPANIES THAT RECEIVED INVESTMENT APPROVALS BEFORE THE END OF LAST YEAR RELIEF WILL APPLY FOR VENTURES' FIRST FIVE YEARS AFTER WHICH FOREIGN FIRMS MUST COMPETE ON EQUAL TERMS WITH CHINESE COMPANIES THE NEW TAX SYSTEM AIMED AT STRENGTHENING EFFORTS TO ADOPT ASPECTS OF A MARKET ECONOMY IS DESIGNED TO CHANNEL 60 OF TAX REVENUE TO THE CENTRAL GOVERNMENT UP FROM 40 NOW TO FINANCE NATIONAL DEVELOPMENT PROJECTS AND CONTROL THE DEFICIT THE NUMBER OF PEOPLE WITHOUT JOBS IN RUSSIA IS EXPECTED TO GROW SHARPLY TO SEVEN MILLION BY THE END OF NEXT YEAR IF ECONOMIC REFORMS CONTINUE AND INSOLVENT ENTERPRISES ARE FORCED TO SHED IDLE WORKERS AFTER OPPONENTS OF REFORM DID UNEXPECTEDLY WELL IN PARLIAMENTARY ELECTIONS LAST MONTH MANY OFFICIALS AND ECONOMISTS HAVE URGED SOFTENING THE FINANCIALSTABILIZATION PROGRAM TO PREVENT WIDESPREAD UNEMPLOYMENT OFFICIALLY ONLY ONE MILLION PEOPLE OR 1 OF THE WORK FORCE ARE UNEMPLOYED BUT OFFICIALS SAID FOUR MILLION PEOPLE DON'T HAVE WORK FOR A RATE OF 5 THAILAND APPROVED AN 823 MILLION PLAN FOR A TRAFFICCONTROL SYSTEM IN CHIANG MAI THE COUNTRY'S SECONDLARGEST CITY TO BE COMPLETED FOR THE 1995 SOUTHEAST ASIAN GAMES THERE THE PLAN ALSO CALLS FOR CONSTRUCTION OF A RING ROAD AND STUDIES FOR A LIGHTRAIL COMMUTER LINE IN THE CITY 360 MILES NORTH OF BANGKOK THE GOVERNMENT WANTS TO MAKE CHIANG MAI A HUB OF TRADE TOURISM INDUSTRY AND EDUCATION WITHOUT TRAFFIC PROBLEMS CHIANG MAI'S POPULATION HAS SOARED FROM 30000 FIVE DECADES AGO TO 400000 SWELLED BY ARRIVALS FROM THE CROWDED CAPITAL SINCE THAILAND'S ECONOMIC BOOM BEGAN IN THE 1980S ROMANIA PLANS TO ACCELERATE ITS PRIVATIZATION PROGRAM THIS YEAR CONCENTRATING ON THE INDUSTRIAL SECTOR WHICH REMAINS LARGELY STATEOWNED SELLOFFS LAST YEAR TOTALED 239 MOSTLY BUILDING AND TRADING COMPANIES THIS YEAR ROMANIA INTENDS TO PUT 2368 ENTERPRISES INTO PRIVATE HANDS 1930 SMALL BUSINESSES 403 MIDSIZE ENTERPRISES AND 35 LARGE COMPANIES IN A BID TO END FOUR DECADES OF BATTLES THE KAREN NATIONAL UNION OF ETHNICMINORITY REBELS DECIDED TO HOLD PEACE TALKS WITH THE MILITARY JUNTA THE KAREN COMMANDER GEN BO MYA ALSO LEADS THE OPPOSITION UMBRELLA GROUP THE DEMOCRATIC ALLIANCE OF BURMA THE GOVERNMENT LAST MONTH REJECTED A KAREN PROPOSAL FOR DAB PEACE TALKS ON BEHALF OF ALL ALLIANCE MEMBERS SMALLER FACTIONS HAVE SINCE STRUCK CEASEFIRE DEALS THE KAREN IS THE STRONGEST OF A DOZEN ETHNIC FORCES THAT HAVE SOUGHT AUTONOMY SINCE BURMA GAINED INDEPENDENCE FROM BRITAIN IN 1948 THE SWISS GOVERNMENT PROPOSED TIGHTENING THE MONEYLAUNDERING LAW BY REQUIRING BANKS FINANCIAL INSTITUTIONS AND OTHERS TO DISCLOSE MORE INFORMATION ON CUSTOMERS AND TRANSACTIONS THE EXPANDED DISCLOSURE RULES TO BE INTRODUCED IN PARLIAMENT IN THE SPRING WOULD APPLY TO CASH TRANSACTIONS OF AT LEAST 25000 SWISS FRANCS 16925 VIOLATORS COULD BE JAILED FOR SIX MONTHS OR FINED 67700 PARLIAMENT LAST MONTH REJECTED PROPOSALS TO LOOSEN BANK SECRECY LAWS TO AID IN INTERNATIONAL CRIMINAL INQUIRIES A ST PETERSBURG OPTICAL COMPANY WILL BE THE FIRST RUSSIAN DEFENSE CONTRACTOR TO BE FREED COMPLETELY FROM STATE CONTROL IN TURNING ENTERPRISES OVER TO PRIVATE OWNERSHIP SINCE LATE 1992 THE GOVERNMENT HAS HUNG ON TO MILITARY SUPPLIERS INVESTORS MAY BID FOR SHARES IN LENINGRAD OPTICALMECHANICAL AMALGAMATION CALLED LOMO WHICH MAKES MOST OF THE OPTICAL AND LASER PRODUCTS USED BY RUSSIA'S MILITARY AND SPACE PROGRAMS PRIVATIZATION VOUCHERS WILL BE ACCEPTED FOR AT LEAST 30 OF LOMO'S SHARES IN AN AUCTION THROUGH FEB 7 THE STATE WILL RETAIN A 20 STAKE THAT WILL BE LEGALLY ENTRUSTED TO LOMO DIRECTORS THE REMAINDER OF THE COMPANY WILL BE OWNED BY ITS WORKERS LOMO IN THE PAST YEAR HAS SLASHED ITS PAYROLL 35 TO 15000 EMPLOYEES FROM 23000 STATEOWNED COMPANIES TYPICALLY WERE HUGELY OVERSTAFFED AS THE GOVERNMENT SOUGHT TO MAINTAIN FULL EMPLOYMENT ABOUT 20 OF LOMO'S PRODUCTION IS DEFENSE WORK DOWN FROM 60 THREE YEARS AGO THE LEBANESE GOVERNMENTBACKED SOLIDERE REDEVELOPMENT COMPANY SAID ABOUT 20000 ARAB INVESTORS BOUGHT SHARES FOR A TOTAL OF 926 MILLION TO REBUILD BEIRUT IT MARKS THE BIGGEST INJECTION OF PRIVATE CAPITAL FOR RECONSTRUCTION SINCE THE 15YEAR CIVIL WAR ENDED IN 1990 BRITAIN'S WATER RESEARCH ASSOCIATION ISSUED A BINDING POLICY TO ELIMINATE SEXIST TERMS IN PLUMBING FOR EXAMPLE BALLCOCKS MUST BE CALLED FLOATOPERATED VALVES AND VIOLATORS MAY BE FINED IN RESPONSE THE 20000MEMBER NATIONAL PLUMBERS ASSOCIATION SAID THIS IS POLITICAL CORRECTNESS GONE MAD 9401130129 940113 WHO'S NEWS KIMBERLYCLARK CORP KIMBERLYCLARK CORP DALLAS PAUL S GEISLER 52 YEARS OLD FORMERLY GROUP PRESIDENT FEMININE AND ADULT CARE WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT ASIA WITH RESPONSIBILITY FOR OPERATIONS IN THAILAND MALAYSIA SINGAPORE AND THE PHILIPPINES AS WELL AS RESPONSIBILITY FOR LICENSEES THROUGHOUT ASIA HE WILL BE SUCCEEDED BY KATHI P SEIFERT 44 FORMERLY PRESIDENT FEMININECARE SECTOR MS SEIFERT WILL BE RESPONSIBLE FOR THE COMPANY'S FEMININE AND ADULTCARE BUSINESSES IN THE US AND CANADA MS SEIFERT WILL BE SUCCEEDED BY THOMAS E WILSON 41 WHO HAS MOST RECENTLY BEEN BUSINESS MANAGER OF THE COMPANY'S WET WIPES OR ITS HUGGIES BRAND BABY WIPES BUSINESS AND NEW INFANTCARE PRODUCTS KIMBERLYCLARK IS A MAKER OF HOUSEHOLD PERSONALCARE AND HEALTHCARE PRODUCTS AS WELL AS NEWSPRINT AND PREMIUM BUSINESS CORRESPONDENCE AND SPECIALTY PAPERS 9401130128 940113 WHO'S NEWS BRITISH STEEL PLC BRITISH STEEL PLC LONDON DAVID GRIEVES DIRECTOR AND VICE CHAIRMAN WILL RETIRE AT THE ANNUAL GENERAL MEETING JULY 27 OF THIS PRODUCER OF STEEL AND STEEL PRODUCTS THE COMPANY ADDED THAT JEFFREY EDDINGTON HAS BEEN APPOINTED EXECUTIVE DIRECTOR IT DIDN'T SAY WHO WOULD SUCCEED MR GRIEVES AS VICE CHAIRMAN 9401130127 940113 BUSINESS BRIEF KENDALL SQUARE OUSTS PRICE WATERHOUSE AND RETAINS COOPERS IN A FEE DISPUTE' WALTHAM MASS KENDALL SQUARE RESEARCH CORP MIRED IN AN ACCOUNTING SCANDAL REPLACED ITS AUDITOR PRICE WATERHOUSE & CO IN WHAT IT CALLED A FEE DISPUTE THE ACTION CAME LESS THAN TWO MONTHS AFTER PRICE WITHDREW ITS ENDORSEMENT OF KENDALL'S PREVIOUSLY REPORTED RESULTS FORCING KENDALL TO RESTATE REVENUE SHARPLY DOWNWARD AND LEADING TO A COLLAPSE IN KENDALL'S STOCK PRICE KENDALL SQUARE SAID COOPERS & LYBRAND WILL REPLACE PRICE WATERHOUSE IT SAID IT HAD CONSIDERED COMPETITIVE PROPOSALS FROM FOUR DIFFERENT AUDIT FIRMS INCLUDING PRICE BEFORE SELECTING COOPERS ZACHARY SHIPLEY NEWLY NAMED TREASURER OF KENDALL SQUARE A MAKER OF SUPERCOMPUTERS SAID THE CHANGE WAS BASED ENTIRELY ON COST AND DIDN'T HAVE ANYTHING TO DO WITH ACCOUNTING TREATMENT MR SHIPLEY IS A LONGTIME AIDE OF WILLIAM KOCH KENDALL'S LARGEST INVESTOR WHO TOOK OVER AS CHIEF EXECUTIVE OFFICER LAST MONTH IN THE WAKE OF THE REVENUE RESTATEMENT IN NEW YORK A SPOKESWOMAN FOR PRICE SAID WE'RE DISAPPOINTED THEY MADE THAT DECISION A LOT OF COMPANIES THESE DAYS DO THAT IN AN EFFORT TO CUT COSTS KENDALL SQUARE A MAKER OF MASSIVELY PARALLEL SUPERCOMPUTERS MADE THE ANNOUNCEMENT LATE YESTERDAY IN OVERTHECOUNTER TRADING KENDALL SQUARE CLOSED AT 5375 OFF 50 CENTS OR 85 ON VOLUME OF 87600 SHARES 9401130126 940106 POLITICS & PEOPLE CLINTON ALLEGATIONS CAUSE GOP MEMORY LOSS BY ALBERT R HUNT WE OUGHT TO HAVE CONFIDENCE IN OUR NATION'S ATTORNEY GENERAL CONFIDENCE THAT SHE JANET RENO CAN CONDUCT CRIMINAL INVESTIGATIONS WITH INDEPENDENCE AND WITHOUT THE INTRUSION OF POLITICS SHE'S MS RENO'S WASTED A LOT OF TIME DRAGGING HER FEET AND IT'S TIME SHE MOVED AND APPOINTED AN INDEPENDENT COUNSEL THE YEAR ISN'T EVEN A WEEK OLD AND BOB DOLE ALREADY IS A CANDIDATE FOR THE POLITICAL HYPOCRISY AWARD OF 1994 WHAT TRANSPIRED IN 45 DAYS WAS THAT PRESIDENT CLINTON AND MS CLINTON'S RELATIONSHIP WITH A FAILED SAVINGS AND LOAN IN THE 1980S BEGAN TO DOMINATE THE HEADLINES BOB DOLE WHO BLOCKED EXTENDING THE INDEPENDENT COUNSEL LEGISLATION IN 1992 WHEN A REPUBLICAN WAS IN THE WHITE HOUSE SMELLED BLOOD THE POLITICAL CONTEXT IS WASHINGTON RETURNING FROM THE HOLIDAYS READYING FOR A ROUGH YEAR WHILE A COUPLE POTENTIAL SCANDALS CIRCLE THE FIRST FAMILY SOME EARLY CONCLUSIONS FROM ALL THIS ARE THE CLINTON SEX SCANDAL IS DYING A WELLDESERVED DEATH BUT THE FINANCIAL ALLEGATIONS MAY HAVE LEGS THE PUBLIC TO THE SURPRISE OF CYNICS HAS MUCH LESS INTEREST THAN THE PRESS IN STORIES ABOUT BILL CLINTON'S ALLEGED INFIDELITIES AS GOVERNOR OF ARKANSAS THE STORY WAS SEAMY IF NOT SPECIOUS FROM THE START THE ESSENCE AS MOST EVERYONE KNOWS BY NOW INVOLVED SEVERAL FORMER ARKANSAS STATE TROOPERS REPRESENTED BY A CLINTONHATING REPUBLICAN POLITICO TELLING HOW THE FORMER ARKANSAS GOVERNOR USED THEM TO FACILITATE SEXUAL ASSIGNATIONS TITILLATION ASIDE IT SEEMS OBVIOUS THAT A THE STORIES ADDED LITTLE TO THE KNOWLEDGE VOTERS POSSESSED DURING THE 1992 ELECTION THAT BILL CLINTON HAD A PHILANDERING PAST B THE ALLEGATIONS AT THE CORE TRUE WERE PROBABLY EMBELLISHED TO MAKE A MORE MARKETABLE STORY AND C THE MOST SERIOUS CHARGE THAT THE PRESIDENT MAY HAVE TRIED TO SILENCE ACCUSERS WITH JOB OFFERS WAS FLIMSY AT BEST BY CONTRAST THE S&L FLAP WON'T FADE AS EASILY THE CENTRAL ISSUE IS DID THE NOWDEFUNCT MADISON GUARANTY SAVINGS & LOAN ILLEGALLY FUNNEL POLITICAL AND PERSONAL FUNDS TO THE CLINTONS IN THE 1980S THE HEAD OF MADISON JAMES MCDOUGAL AND THE CLINTONS WERE PARTNERS IN A SEPARATE LAND DEVELOPMENT COMPANY WHITEWATER DEVELOPMENT CO WHICH ALSO MAY HAVE ILLICITLY GOTTEN MONEY FROM A SMALL BUSINESS INVESTMENT COMPANY RUN BY DAVID HALE WHOM GOV CLINTON APPOINTED A STATE JUDGE THE PLOT THICKENED FOLLOWING THE TRAGIC SUICIDE LAST JULY OF VINCE FOSTER A WHITE HOUSE COUNSEL AND THE CLINTONS' FORMER LAWYER WITHIN HOURS PRESIDENTIAL AIDES HASTILY SPIRITED WHITEWATER FILES OUT OF MR FOSTER'S OFFICE THE CLINTONS THE FIRST LADY ONCE RECEIVED A 2000AMONTH RETAINER AS MADISON'S ATTORNEY DENY ANY IMPROPRIETIES AND SAY THEY ACTUALLY LOST ALMOST 69000 FROM THE WHITEWATER INVESTMENT YET A REPORT ASSERTING THIS BY A CLINTON FRIEND LAST YEAR IS FLAWED AND THERE ARE KEY RECORDS MISSING MEANWHILE MR HALE UNDER INDICTMENT HIMSELF PRIVATELY IS TRYING TO CUT A DEAL CLAIMING THAT HE HAS SOME INCRIMINATING DOCUMENTS THIS IS EXACTLY THE SORT OF CASE FOR WHICH THE INDEPENDENT COUNSEL MEASURE WAS INTENDED WHEN INTERVIEWED WITH PROMISE OF CONFIDENTIALITY TWO TOP LAWYERS BOTH WITH CRIMINAL AND FINANCIAL EXPERTISE THOUGH NOT INVOLVED IN THIS CASE SEPARATELY ARRIVE AT THE SAME DEDUCTION THE CLINTONS MAY HAVE ENGAGED IN ETHICAL TRANSGRESSIONS BUT THE POSSIBILITY OF ANY CRIMINAL VIOLATION IS FARFETCHED THE CLINTONS SHOULD HAVE AVOIDED ANY DEALS WITH MR MCDOUGAL A WELLKNOWN HUSTLER IN ARKANSAS POLITICAL CIRCLES BUT THE FIRST FAMILY HAS NO HISTORY OF SEEKING BIG BUCKS OR CUTTING SHADY DEALS BUT THIS IS WHY A TRULY INDEPENDENT COUNSEL TO INVESTIGATE SERIOUS ALLEGATIONS BY VERY TOP EXECUTIVEBRANCH AND SOMETIMES CONGRESSIONAL FIGURES IS NECESSARY TO ESTABLISH INNOCENCE AS WELL AS GUILT THE APPEARANCE OF JUSTICE HAVING BEEN DONE IS EQUALLY AS IMPORTANT AS JUSTICE HAVING BEEN DONE SAYS SEN WILLIAM COHEN R MAINE A CHAMPION OF INDEPENDENT COUNSEL LEGISLATION CONSERVATIVE CRITICS FORGET IT WAS THEIR HERO ED MEESE WHO REQUESTED AN INDEPENDENT COUNSEL BACK IN 1984 AND WAS CLEARED OF ANY CRIMINAL CONDUCT LEGISLATION EXTENDING THE LAW IS ESSENTIAL A MEASURE HAS PASSED THE SENATE AND THE HOUSE EXPECTS IT TO DO LIKEWISE BY EARLY FEBRUARY AN UNDENIABLE PROBLEM IS THAT THE STATUTE OF LIMITATIONS ON SOME OF THE MADISON ALLEGATIONS EXPIRES IN MARCH BUT EVEN THE CURRENT INVESTIGATION BEING CONDUCTED BY A HIGHLY RESPECTED CAREER OFFICIAL IS UNLIKELY TO WRAP UP IN TWO MONTHS WHAT SEN DOLE PROPOSES IS FOR ATTORNEY GENERAL RENO ON HER OWN TO APPOINT A SOCALLED INDEPENDENT COUNSEL THAT PERSON OF COURSE WOULD REPORT TO HER AND ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHOSE FATHERINLAW GOT A HUGE LOAN FORGIVENESS FROM MADISON THAT'S LIKE SETTING UP A BLIND TRUST THAT YOU CAN PEEK AT IF A JUSTICE DEPARTMENTDESIGNATED COUNSEL ISSUES A REPORT EXONERATING THE CLINTONS ONE ALREADY CAN HEAR THE KANSAS REPUBLICAN QUESTIONING THE INDEPENDENCE OF THE CONCLUSION WITH DEMOCRATS RUNNING THE EXECUTIVE BRANCH FOR THE FIRST TIME IN A DOZEN YEARS REPUBLICAN VIEWS ON EXECUTIVE PRIVILEGES AND PERQUISITES ARE IN A METAMORPHIC FREE FALL REMEMBER THOSE DAYS WHEN REPUBLICANS PASSIONATELY PROTESTED AGAINST ANY ENCROACHMENT ON EXECUTIVE AUTHORITY THAT STARTED TO END ABOUT 351 DAYS AGO WHEN BILL CLINTON WAS SWORN IN A MAINSTAY IN THE OLD ARGUMENT WAS OPPOSITION TO COUNSELS TRULY INDEPENDENT OF THE EXECUTIVE BRANCH NOW CONSERVATIVES ARE CALLING FOR INDEPENDENT COUNSELS TO INVESTIGATE ALLEGATIONS NOT ONLY AGAINST THE CLINTONS BUT SEPARATELY AGAINST COMMERCE SECRETARY RON BROWN SIMILARLY ON FOREIGN POLICY REMEMBER THOSE IMPASSIONED CONSERVATIVES WHO PROTESTED AGAINST ANY EFFORTS TO TIE THE PRESIDENT'S HANDS ON NICARAGUA OR EL SALVADOR OR BEIRUT DURING THE 1980S SUDDENLY FOR BOB DOLE AND OTHERS THE PRINCIPLES CHANGED THIS YEAR WHEN IT CAME TO SOMALIA AND A DEMOCRATIC PRESIDENT THESE REPUBLICANS DON'T EVEN COME UP WITH AN ARGUMENT FOR CHANGING THEIR POSITION NOTES REP BARNEY FRANK D MASS THEY JUST FIGURE THE PUBLIC DOESN'T HAVE ANY MEMORY IN A VARIATION ON THIS SEPARATIONOFPOWERS ISSUE HERE'S ONE MORE PREDICTION IF THE GOP PICKS UP 20 OR 25 HOUSE SEATS THIS YEAR AND A HALFDOZEN SENATE SEATS PUTTING THEM WITHIN STRIKING DISTANCE OF CONGRESSIONAL CONTROL WATCH ALL THE CONSERVATIVE CLAMOR FOR TERM LIMITS FOLLOW THE SAME FATE AS WORRIES ABOUT ENCROACHING ON EXECUTIVE AUTHORITY WITH MEASURES LIKE INDEPENDENT COUNSELS SEE RELATED LETTER LETTERS TO THE EDITOR HERE'S THE WAY I REMEMBER IT WSJ JAN 13 1994 9401060055 YY94 MM01 9401130125 940113 WHO'S NEWS NEWS CORP NEWS CORP SYDNEY AUSTRALIA THIS MEDIA COMPANY SAID JAAN TORV 46 YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF PROGRAMMING AND DEVELOPMENT FOR DELPHI INTERNET SERVICES THE RECENTLY ACQUIRED CONSUMER ONLINE SERVICE BASED IN CAMBRIDGE MASS FOR THE LAST THREE YEARS MR TORV WAS VICE PRESIDENT OF NEWS AMERICA NEW MEDIA RESPONSIBLE FOR DEVELOPING AND OPERATING ITS ELECTRONIC AND INTERACTIVE PRODUCTS 9401130124 940113 WHO'S NEWS USF&G CORP USF&G CORP BALTIMORE GLENN W ANDERSON WAS NAMED EXECUTIVE VICE PRESIDENT COMMERCIAL LINES OF THIS INSURANCE HOLDING COMPANY'S USF&G INSURANCE UNIT MR ANDERSON 41 YEARS OLD PREVIOUSLY SENIOR VICE PRESIDENT COMMERCIAL LINES SUCCEEDS GARY C DUNTON 38 WHO WAS NAMED EXECUTIVE VICE PRESIDENT FIELD OPERATIONS 9401130123 940113 WHO'S NEWS FLEET FINANCIAL GROUP INC FLEET FINANCIAL GROUP INC PROVIDENCE RI AGNES J BUNDY FORMER COUNSEL TO THE US SENATE BUDGET COMMITTEE WAS NAMED SENIOR VICE PRESIDENT CORPORATE ADMINISTRATION MS BUNDY 36 YEARS OLD WILL BE IN CHARGE OF FLEET'S COMMUNITY REINVESTMENT ACT COMPLIANCE PROGRAM HER APPOINTMENT COMES IN THE WAKE OF CONTROVERSY OVER ALLEGATIONS OF UNFAIR LEADING PRACTICES AT FLEET NEW ENGLAND'S LARGEST BANK 9401130122 940113 POLITICS & PEOPLE CLINTON'S RUSSIA POLICY IS NO SHINING SUCCESS BY ALBERT R HUNT IN JUNE 1992 RUSSIAN PRESIDENT BORIS YELTSIN AFTER A SOJOURN WITH GEORGE BUSH AT CAMP DAVID MET WITH CONGRESSIONAL LEADERS AT THE RUSSIAN EMBASSY AS HE WAS TALKING WITH DEMOCRATIC CONGRESSIONAL LEADERS THOMAS FOLEY AND GEORGE MITCHELL AND THEIR REPUBLICAN COUNTERPARTS BOB MICHEL AND BOB DOLE THE RUSSIAN LEADER NOTED ALMOST CASUALLY THAT WE ARE ALL LOOKING FORWARD TO PRESIDENT BUSH'S REELECTION NOT QUITE INTERRUPTED SPEAKER OF THE HOUSE FOLEY TELLING A SURPRISED BORIS YELTSIN THAT WHILE EVERYBODY LIKES GEORGE BUSH SOME NOT ONLY WEREN'T LOOKING FORWARD TO HIS REELECTION BUT DIDN'T THINK IT WOULD HAPPEN THE ANECDOTE IS OF LITTLE CONSEQUENCE EXCEPT TO SHOW HOW STUNNINGLY NAIVE MR YELTSIN IS ABOUT AMERICAN POLITICS MORE SIGNIFICANT HOWEVER AS PRESIDENT CLINTON SITS DOWN FOR TALKS IN MOSCOW TODAY IS THAT IT JUST MAY BE THAT THE CLINTON ADMINISTRATION HAS BEEN SIMILARLY NAIVE ABOUT RUSSIAN POLITICS THE ADMINISTRATION CONSIDERS ITS RUSSIAN POLICY A SHINING SUCCESS IN A SEA OF FOREIGN POLICY PROBLEMS THE STRONG SHOWING OF NEOFASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS MAY HAVE SHOCKED THE CLINTONITES BUT IT DIDN'T CHANGE THEIR SELFCONGRATULATORY POSTURE THE CHIEF ARCHITECT OF THIS POLICY RUSSIA EXPERT AND FORMER TIME MAGAZINE EDITOR STROBE TALBOTT NEWLY DESIGNATED AS DEPUTY SECRETARY OF STATE HAS WON FAWNING REVIEWS FROM MOST OF HIS FORMER COLLEAGUES IN THE DIPLOMATIC PRESS CORPS YET THE ADMINISTRATION CLEARLY UNDERESTIMATED THE ECONOMIC DISASTER IN RUSSIA IT'S STILL UNSURE OF HOW TO SPEND MUCH OF THE 3 BILLION IT GOT CONGRESS TO APPROPRIATE FOR RUSSIAN AID LAST YEAR THE RUSSIANS SHAMEFULLY HAVE BEEN GIVEN A VETO OVER SOME SECURITY ARRANGEMENTS IN EASTERN EUROPE AND OUR POLICY RESTS ALMOST EXCLUSIVELY ON BORIS YELTSIN MOST OF THE ADMINISTRATION TALK ABOUT ECONOMIC PROGRESS THERE IS A MIRAGE IN A COUNTRY WITH NO MODERN HISTORY OF MARKETS IT'S NOT SURPRISING THAT WHEN YOU START ELIMINATING CENTRAL PLANNING WHAT YOU GET IS A BLACK NOT A FREE MARKET RUSSIA AS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN NOTED IN A SPEECH EARLIER THIS YEAR LACKS THE RUDIMENTARY INSTITUTIONS MOST PROMINENTLY A LEGAL SYSTEM TO CONVERT TO A MARKETBASED SYSTEM MEANING THAT ANY TRANSITION IS LIKELY TO BE SIGNIFICANTLY STRETCHED OUT THE PHYSICAL INFRASTRUCTURE NOTES WELLESLEY COLLEGE RUSSIA EXPERT MARSHALL GOLDMAN IS DREADFUL MORE THAN 70 OF ALL RUSSIAN FACTORIES ARE MODELS OF INEFFICIENCY WITH WORK FORCES OF MORE THAN 1000 EMPLOYEES THE PREDICTABLE RESULT IS RAMPANT INFLATION AND NEGATIVE GROWTH THE RUSSIANS THE LINE GOES ARE TERRIFIC AT CONVERTING STEEL INTO SCRAP ONE PROMINENT ECONOMIST AFTER SPENDING TIME IN RUSSIA CONCLUDED THERE'S ONE SOLUTION SEND 150 MILLION PEOPLE AWAY FOR A FEW YEARS RAZE THE COUNTRY AND START FROM SCRATCH THIS MAKES THE DEBATE ABOUT ECONOMIC SHOCK THERAPY IN RUSSIA AFTER THE PARLIAMENTARY ELECTIONS MR TALBOTT WAS SAID TO ADVOCATE MORE THERAPY AND LESS SHOCK A FALSE CHOICE THE ADVOCATES CITE POLAND AS A SUCCESS BUT POLAND HAS A HISTORY OF MARKETS MORE THAN THREEQUARTERS OF THE FARMS THERE NEVER WERE COLLECTIVIZED AND THERE WAS A SMALLER BUT NOT INSIGNIFICANT RETAIL MARKET THE THERAPY WITHLESSSHOCK PROPONENTS IGNORE THE EXAMPLE OF UKRAINE WHICH MAKES RUSSIA LOOK GOOD THUS THE INESCAPABLE CONCLUSION IS THAT ECONOMICALLY AS WELL AS POLITICALLY WHAT THE US DOES WILL HAVE AT MOST A MARGINAL EFFECT WHICH RAISES QUESTIONS ABOUT WHY WE'RE POURING BILLIONS OF DOLLARS INTO THIS MESS MOST OF THE 3 BILLION APPROPRIATED IN 1993 LIES IN LIMBO ONE PRELIMINARY PLAN CALLED FOR 15 OF THE MONEY EARMARKED FOR MILITARY HOUSING RELOCATION TO BE SET ASIDE FOR LOCAL RUSSIAN HOUSING OFFICIALS CONGRESSIONAL EXPERTS POINTED OUT THAT THIS WOULD CONSTITUTE NOTHING MORE THAN A PAYOFF IN A TIGHT FISCAL CLIMATE AT HOME FEW AMERICANS WILL COTTON TO SPENDING MILLIONS OF THEIR TAX DOLLARS TO BRIBE CORRUPT RUSSIANS SIMILARLY THERE'S WIDESPREAD SPECULATION ABOUT HUGE RIPOFFS BY THE UBIQUITOUS CONSULTANTS THE SIMPLE FACT IS THAT RUSSIA IS AN ECONOMIC MIDGET ILLEQUIPPED TO RECEIVE LARGE AMOUNTS OF OUTSIDE AID TRADE IS A PRETTY DECENT MEASURE OF ECONOMIC STANDING AND THE US HAS MORE COMMERCE WITH 38 NATIONS RUSSIA RANKS BEHIND DENMARK AND SLIGHTLY AHEAD OF COSTA RICA WHILE STROBE TALBOTT PROCLAIMS RUSSIA AS OUR TOP FOREIGN POLICY PRIORITY BILL CLINTON SAYS ECONOMICS IS THE PREEMINENT INTERNATIONAL ISSUE THERE'S A CONFLICT IT'S ALSO INCONGRUOUS THAT A COUNTRY SO ECONOMICALLY DECIMATED IS AN IMPERIALISTIC THREAT NOTWITHSTANDING ITS HISTORY FOR THE FORESEEABLE FUTURE RUSSIA MAY BE A NUISANCE SOMETIMES EVEN A DANGEROUS ONE TO ITS NEWLY INDEPENDENT IMMEDIATE NEIGHBORS BUT THE POSSIBLE REEMERGENCE OF A SUPERPOWER THREAT IS LUDICROUS SOMEDAY RUSSIA WITH CONSIDERABLE RESOURCES MAY BE AN IMPORTANT COUNTRY AGAIN BUT THAT HARDLY RESTS SOLELY ON BORIS YELTSIN'S SUCCESS AS THE ADMINISTRATION WOULD HAVE YOU BELIEVE THE RUSSIAN LEADER IS A BRAVE MAN HE THRIVES ON CRISES BUT HE SHOWS MUCH LESS TALENT FOR THE COALITION CRAFTING OR CONSTITUENCY BUILDING ESSENTIAL TO GOVERNANCE INDEED HE SEEMS MORE LIKE AMERICAN POLITICIANS WHO THRIVE ON RUNNING FOR OFFICE BUT ARE RESTLESS SERVING IT'S DICEY TO SO TOTALLY BASE POLICY ON THIS ONE MAN THERE STILL ARE IMPORTANT ISSUES THIS THIRDRATE COUNTRY HAS 25000 NUCLEAR WEAPONS MR TALBOTT AND TOP DEFENSE DEPARTMENT OFFICIALS DESERVE CREDIT FOR NEGOTIATING A NUCLEAR PACT WITH UKRAINE LET'S HOPE IT WILL STICK IT'S ESSENTIAL THAT FURTHER DISMANTLING AND DESTRUCTION OF NUCLEAR WEAPONS TAKE PLACE IN RUSSIA AND OTHER FORMER SOVIET STATES WE OUGHT TO GIVE WHATEVER MONEY IT TAKES TO FACILITATE THAT THE U S ALSO OUGHT TO REMOVE BARRIERS TO RUSSIAN EXPORTS AND HELP FUND AND LAUNCH NEW BUSINESSES AS OPPOSED TO TRYING TO PRIVATIZE BLOATED EXISTING STRUCTURES BUT WHEN PRESIDENT CLINTON AS HE DID THE OTHER DAY PREDICTS THAT RUSSIA IS ON THE WAY TO AGAIN BECOMING A VERY GREAT NATION IT'S A DELUSION IN THE SAME SESSION WITH COLUMNISTS THE PRESIDENT SUGGESTED THAT IT WOULD BE GOOD TO TAILOR THE ADMINISTRATION'S RUSSIAN POLICY TO A SLOGAN THAT WOULD FIT ON A BUMPER STICKER I THINK OUR SLOGAN WOULD BE THERE NEEDS TO BE MORE REFORM AND MORE SOCIAL SERVICE SUPPORT MORE ATTEMPTS TO BUILD A SAFETY NET TO DEAL WITH THE CONSEQUENCES OF REFORM BUT NOT AN ATTEMPT TO SLOW DOWN THE REFORM EFFORT THEN IF YOU SAID THERAPY THEN YOU'D HAVE ALL KINDS OF OTHER AMBIGUOUS THINGS YOU COULD GET IN THERE THE PRESIDENT MAY NEED NOT ONLY A BETTER SLOGAN BUT A MORE REALISTIC POLICY 9401130121 940113 INTERNATIONAL BRIEF AER LINGUS NONSTOP FLIGHTS TO BEGIN BETWEEN DUBLIN NEW YORK AER LINGUS UNVEILED THE FIRST DUBLINNEW YORK NONSTOP FLIGHTS AND A SWITCH FROM BOEING CO AIRCRAFT TO AIRBUS INDUSTRIE PLANES AS PART OF ITS NEW NORTH ATLANTIC STRATEGY IRELAND'S STATEOWNED AIRLINE SAID IT WOULD LEASE THREE AIRBUS A330 PLANES FOR ITS NEW TRANSATLANTIC SERVICES THE NEW 331SEAT AIRBUSES TO BE LEASED FROM AMERICAN INTERNATIONAL GROUP INC'S INTERNATIONAL LEASE FINANCE CORP WILL REPLACE AER LINGUS'S THREE AGING BOEING 747S WHICH SEAT UP TO 425 PASSENGERS THE AIRLINE POSTED A LOSS OF 188 MILLION IRISH PUNTS 2692 MILLION IN THE MOST RECENT FULL FISCAL YEAR WHICH ENDED MARCH 31 1993 ANALYSTS BLAMED THE AIRLINE'S PROBLEMS ON POOR COST CONTROLS AND AN EXPENSIVE STOP REQUIRED BY THE IRISH GOVERNMENT IN THE WESTERN IRISH CITY OF SHANNON FOR ALL TRANSATLANTIC FLIGHTS 9401130120 940113 WHO'S NEWS LECHTERS TAPS KANTER TO BE VICE CHAIRMAN AND CHIEF EXECUTIVE HARRISON NJ HOUSEWARES RETAILER LECHTERS INC NAMED STEEN KANTER PRESIDENT OF EAST COAST OPERATIONS FOR SWEDISH HOMEFURNISHING RETAILER IKEA AB TO BE VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER LECHTERS WHICH OPERATES 572 STORES IN 42 STATES ALSO PROMOTED MICHAEL A ANTHONY TO PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE MR KANTER 47 YEARS OLD SUCCEEDS LECHTERS COFOUNDER DONALD JONAS 64 WHO REMAINS CHAIRMAN THE VICE CHAIRMAN POSITION HAD BEEN VACANT SINCE NOVEMBER WHEN COFOUNDER ALBERT LECHTER 64 RESIGNED MR LECHTER REMAINS A CONSULTANT AND DIRECTOR MR KANTER WAS A 22YEAR VETERAN OF IKEA A SPOKESWOMAN FOR IKEA SAID THE COMPANY HASN'T NAMED A SUCCESSOR MR ANTHONY 38 HAD BEEN AN EXECUTIVE VICE PRESIDENT THE PRESIDENT AND CHIEF OPERATING OFFICER POSITIONS WERE LEFT VACANT BY MR LECHTER IN 1992 WHEN HE BECAME VICE CHAIRMAN 9401130118 940113 WHO'S NEWS ERNST & YOUNG ERNST & YOUNG NEW YORK DALE L WARTLUFT 52 YEARS OLD WAS NAMED MANAGING DIRECTOR OF THIS ACCOUNTING TAX AND CONSULTING FIRM'S GREAT LAKES MANAGEMENT CONSULTING GROUP BASED IN CHICAGO HE SUCCEEDS JAMES S DISTASIO 46 WHO WAS NAMED MANAGING PARTNER OF ERNST & YOUNG'S NEW ENGLAND AREA OFFICES BASED IN BOSTON MR WARTLUFT MOST RECENTLY WAS THE COMPANY'S NATIONAL DIRECTOR FOR SYSTEMS PLANNING AND DELIVERY 9401130117 940113 ENTERPRISE FOCUS ON FRANCHISING TACO BELL FRANCHISEE IS ALLOWED TO PUSH SPYING CHARGE BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DID TACO BELL USE A SPY TO MONITOR A PESKY FRANCHISEE THIS WEEK A FEDERAL JUDGE DECIDED TO LET A DISGRUNTLED FRANCHISEE PURSUE AN UNUSUAL ALLEGATION IN HIS LAWSUIT AGAINST THE IRVINE CALIF UNIT OF PEPSICO INC THE SUIT CHARGED THAT TACO BELL HAD PLANTED A SPY WHO SECRETLY USED A HIDDEN MICROPHONE TO TAPE THE FRANCHISEE'S CONVERSATIONS TACO BELL HAS YET TO ANSWER THE SUBSTANCE OF THE SPYING CHARGES IN COURT THOUGH IT UNSUCCESSFULLY TRIED TO DISMISS THEM ON TECHNICAL GROUNDS FRANCHISEE RICHARD L COHN WHO RUNS NINE TACO BELL UNITS IN THE CHICAGO SUBURBS BROUGHT SUIT IN CHICAGO IN 1992 AND ADDED THE SPYING ALLEGATION LAST AUGUST IN THE SUIT MR COHN ALSO MAINTAINED THAT TACO BELL BROKE PROMISES TO LET HIM OPEN TWO MORE RESTAURANTS THE SUIT CHARGED THAT THE FRANCHISER DECIDED TO DRIVE MR COHN OUT OF THE TACO BELL SYSTEM ABOUT THREE YEARS AGO THE SUIT ALLEGED THAT TACO BELL OFFICIALS THOUGHT MR COHN ASKED TOO MANY QUESTIONS ABOUT ITS PRICING AND SUPPLIERS AND WANTED TO FORM A DISSIDENT GROUP OF TACO BELL FRANCHISEES SUCH A GROUP EVENTUALLY FORMED AND MR COHN JOINED PAUL K VICKREY AN ATTORNEY FOR MR COHN SAYS HE AIMS TO SHOW THAT TACO BELL UNDERMINED ITS FRANCHISEE PARTLY BY USING THE ALLEGED SPY DIRK SMITH AT TACO BELL'S SUGGESTION MR COHN HIRED MR SMITH THEN A TACO BELL MARKET MANAGER IN HOUSTON TO OVERSEE HIS OPERATIONS ACCORDING TO THE SUIT DURING HIS SIXMONTH TENURE IN 1991 MR SMITH ALLEGEDLY SPIED ON HIS BOSS AND REPORTED HIS FINDINGS TO TACO BELL OFFICIALS THE SUIT CLAIMED ABSOLUTELY LUDICROUS I NEVER DID ANY SPYING FOR TACO BELL WHATSOEVER RETORTS MR SMITH NOW VICE PRESIDENT OF SIZZLIN' QUICK HAMBURGERS INC AN AUSTIN TEXAS FRANCHISER MR SMITH SAYS HE DID RECORD CONVERSATIONS WITHOUT MR COHN'S KNOWLEDGE IN ORDER TO PREPARE A POSSIBLE LAWSUIT AGAINST MR COHN'S COMPANY RLC ENTERPRISES INC MR SMITH NEVER SUED IN THIS WEEK'S RULING MR COHN WAS REBUFFED ON AN ENCROACHMENT CHARGE THAT HAD SPARKED HIS LAWSUIT HOWEVER HE MAINTAINED THAT TACO BELL HAD VIOLATED A CONTRACT BY PLANNING A FRANCHISEROWNED RESTAURANT IN VERNON HILLS WITHIN TWO MILES OF MR COHN'S MOST PROFITABLE UNIT IN MUNDELEIN ILL ACCORDING TO THE COHN SUIT TACO BELL IGNORED A SOCALLED IMPACT STUDY PREDICTING THAT THE PLANNED UNIT WOULD CANNIBALIZE BETWEEN 27 AND 40 OF THE EXISTING UNIT'S SALES JUDGE JOHN A NORDBERG DISMISSED THAT CHARGE RULING THAT TACO BELL'S AGREEMENTS WITH FRANCHISEES PERMIT ENCROACHMENT WITH ENCROACHMENT CASES ON THE RISE THE JUDGE'S RULING WILL INTEREST MANY FRANCHISERS WORRIED ABOUT HOW TO WORD CONTRACTS STANLEY J ADELMAN A TACO BELL ATTORNEY DECLINED TO DISCUSS THE COHN CASE TACO BELL OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT STATE WATCHDOGS ON FRANCHISING WILL GET TO KEEP THEIR JOBS AFTER ALL AN ARCANE ISSUE CALLED PREEMPTION HAS FINALLY DIED AT THE FEDERAL TRADE COMMISSION STATE FRANCHISE REGULATORS LONG FRANCHISEES' GREATEST SOURCE OF PROTECTION WILL KEEP THEIR POWER AT LEAST FOR NOW LAST MONTH THE FTC ENDED A FOURYEAR LOOK AT WHETHER THE FEDERAL GOVERNMENT SHOULD PREEMPT STATE RULES GOVERNING FRANCHISERS' DISCLOSURES TO PROSPECTIVE FRANCHISEES THE FTC PRESENTLY OVERSEES FEDERAL DISCLOSURE RULES FOR FRANCHISERS BUT STATES MAY SET THEIR OWN TOUGHER STANDARDSAND SOME DO SO IF FEDERAL RULES WERE PREEMPTIVE THEY ALONE WOULD APPLY THAT PROSPECT ALARMS SOME FRANCHISEE ADVOCATES AS THE LAWS EXIST NOW FRANCHISEES DO BETTER UNDER THE STATE LAWS SO FEDERAL PREEMPTION WOULD NOT MAKE SENSE SAYS MARIO L HERMAN A WASHINGTON DC LAWYER FOR FRANCHISEES NEARLY FIVE YEARS AGO TERRY CALVANI THEN AN FTC COMMISSIONER STUNNED STATE REGULATORS BY DECLARING THAT THE FTC MIGHT PREEMPT THEIR ROLE MR CALVANI NOW A PRIVATE ATTORNEY IN WASHINGTON SAYS HE HAD HOPED TO END A CRAZY QUILT OF REGULATIONS THAT COSTS FRANCHISERS PLENTY AND MAKES IT MUCH HARDER FOR NEWCOMERS TO ENTER THE MARKET THE FTC INITIATED ITS PROCEEDING IN 1989 LAST MONTH AGENCY OFFICIALS SAID THEY COULDN'T JUSTIFY PREEMPTION BECAUSE THEY DIDN'T SEE SUFFICIENT EVIDENCE OF COSTLY CONFLICTS OR INCONSISTENCIES AMONG VARIOUS STATES' RULES POLITICS ALSO PLAYED A ROLE WHILE INITIALLY VOWING TO WORK HARD FOR PREEMPTION THE INTERNATIONAL FRANCHISE ASSOCIATION LATER TOOK A LUKEWARM STANCE INDIVIDUALS CLOSE TO THE FRANCHISER GROUP SAY IT FEARED ALIENATING STATE REGULATORS THE IFA'S SPOKESMAN ON THIS ISSUE COULDN'T BE REACHED BUT LAST YEAR THE IFA RENEWED ITS SUPPORT FOR PREEMPTION IN A LETTER TO REP JOHN J LAFALCE D NY THE LEADING ADVOCATE OF TOUGHER FRANCHISING LAWS MR LAFALCE HAS INDICATED HE MIGHT CHANGE HIS OPPOSITION TO PREEMPTION IF FRANCHISERS SUPPORTED HIS PROPOSED CURBS ON THEM NOW IF THERE EVER IS TO BE PREEMPTION IT WILL BE THE RESULT OF NEW FEDERAL LEGISLATION SAYS NEIL A SIMON A WASHINGTON LAWYER WELFARE RECIPIENTS MAY SOON BECOME WORLDWIDE REFINISHING FRANCHISEES WORLDWIDE REFINISHING SERVICES INC A UNIT OF ENTREPRENEUR DON DWYER'S DWYER GROUP IN WACO TEXAS SAYS IT HAS OFFERED TO WAIVE FRANCHISEES' 24200 ENTRY COSTS FOR CERTAIN RESIDENTS TRYING TO WORK THEIR WAY OUT OF PUBLICHOUSING PROJECTS THE COMPANY SAYS IT HAS ALREADY LINED UP FIVE SUCH FRANCHISEES IN NEW YORK CITY AND PLANS TO TRAIN THEM NEXT MONTH IF THE CITY LETS THEM THE NEW FRANCHISEES INITIALLY WOULD SELL THEIR SERVICES MOSTLY REFINISHING BATHTUBS TO HOUSING PROJECTS WHERE THEY NOW LIVE ONCE THEY DEVELOPED OUTSIDE CUSTOMERS THE FRANCHISEES COULD MOVE OUT AND MAKE ROOM FOR THEIR REPLACEMENTS IN THE PROJECTS IF SOMEONE WANTS TO BE OFF THE WELFARE ROLLS AND IS WILLING TO WORK HARD THIS IS A VEHICLE FOR THEM TO USE SAYS CHARLES H WALLIS EXECUTIVE VICE PRESIDENT OF WORLDWIDE THE PLAN IS PART OF NEW YORK'S BROADER EFFORT TO ENCOURAGE PUBLICHOUSING RESIDENTS TO START SMALL BUSINESSES SAYS MARCIA MELENDEZ A BUSINESSDEVELOPMENT OFFICIAL FOR THE CITY'S HOUSING AUTHORITY SHE SAYS THE WORLDWIDE PLAN SHOULD WIN FINAL APPROVAL SOON WORLDWIDE SAYS IT AIMS TO MAKE SIMILAR ARRANGEMENTS THIS YEAR IN WASHINGTON BOSTON AND OTHER MAJOR CITIES BRIEFS THE INTERNATIONAL FRANCHISE ASSOCIATION REFLECTING US FRANCHISERS' RISING INTEREST IN FOREIGN MARKETS SAYS IT WILL SPONSOR 11 INTERNATIONAL CONFERENCES THIS YEAR UP FROM EIGHT IN 1993 FRANCHISING LAWYERS SAY NEW LEGISLATIVE BATTLES OVER FRANCHISEE RIGHTS LOOM THIS YEAR IN CALIFORNIA CONNECTICUT FLORIDA MAINE AND MARYLAND 9401130116 940113 MORGAN STANLEY PLANS WARRANTS NEW YORK MORGAN STANLEY GROUP INC SAID IT PLANS AN OFFERING OF WARRANTS TIED TO THE VALUE OF THE MARK RELATIVE TO THE US DOLLAR THE OFFERING INCLUDES FIVE MILLION MARK PUT WARRANTS AND 25 MILLION CALL WARRANTS THE VALUE OF THE PUT WARRANTS WILL BE BASED ON DECREASES IN THE VALUE OF THE MARK RELATIVE TO THE US DOLLAR AND THE VALUE OF THE CALL WARRANTS WILL BE BASED ON INCREASES IN THE VALUE OF THE MARK RELATIVE TO THE DOLLAR THE INVESTMENT BANKING COMPANY SAID MORGAN STANLEY HAS APPLIED TO LIST THE WARRANTS ON THE AMERICAN STOCK EXCHANGE WHICH ALREADY LISTS SEVERAL SIMILAR ISSUES 9401130115 940113 WHO'S NEWS BOND ANALYST SCOTTO QUITS EQUITABLE UNIT TO JOIN BEAR STEARNS NEW YORK DANIEL SCOTTO A TOPRANKED UTILITIES FIXEDINCOME ANALYST LEFT DONALDSON LUFKIN & JENRETTE INC TO TAKE A SIMILAR POSITION AT BEAR STEARNS & CO MR SCOTTO WHO ALSO HEADED DLJ'S HIGHYIELD AND INVESTMENTGRADE FIXEDINCOME GROUPS JOINS BEAR STEARNS AS A SENIOR MANAGING DIRECTOR AND HEAD OF THE FIRM'S HIGHGRADE RESEARCH DEPARTMENT A NEW POSITION AT DLJ MR SCOTTO HEADED THE INVESTMENTGRADE AND HIGHYIELD FIXEDINCOME GROUPS BEAR STEARNS IS A UNIT OF BEAR STEARNS COS DLJ IS A UNIT OF EQUITABLE COS WHILE FIXEDINCOME ANALYSTS RARELY ENJOY THE SPOTLIGHT GIVEN TO THEIR EQUITYSIDE COLLEAGUES MR SCOTTO HAS BUILT A HIGH PROFILE IN THE ELECTRIC UTILITIES INDUSTRY THROUGH FREQUENT PUBLICATION OF HIS WORK AND BLUNT COMMENTARY HE HAS BEEN BEARISH ABOUT THE INDUSTRY'S OUTLOOK IN VIEW OF THE QUICKENING DEREGULATION OF ELECTRIC UTILITIES INSTITUTIONAL INVESTOR MAGAZINE RATED HIM THE TOP FIXEDINCOME ELECTRIC UTILITIES ANALYST IN AUGUST 1993 AN INTERNAL MEMORANDUM AT DLJ CALLED MR SCOTTO'S SKILLS LEGENDARY ADDING THAT HE RESIGNED BECAUSE OF PENDING ORGANIZATIONAL CHANGES THE COMPANY DECLINED TO COMMENT FURTHER DLJ NAMED TERRAN A MILLER FORMERLY OF MERRILL LYNCH & CO TO SUCCEED MR SCOTTO MR SCOTTO COULDN'T BE REACHED TO COMMENT 9401130114 940113 CORRECTIONS & AMPLIFICATIONS JOHN L SPRAGUE WAS NAMED A DIRECTOR OF CALIFORNIA MICRO DEVICES CORP A MAKER OF THINFILM SILICONBASED INTEGRATED CIRCUITS HE RETIRED IN 1987 AS CHIEF EXECUTIVE OFFICER OF A COMPANY HIS FATHER FOUNDED SPRAGUE ELECTRIC CO PRIMARILY A MAKER OF CAPACITORS IN TUESDAY'S WHO'S NEWS COLUMN CALIFORNIA MICRO WAS MISIDENTIFIED AS A SEMICONDUCTOR CONCERN AND MR SPRAGUE AS SPRAGUE ELECTRIC'S FOUNDER 9401130113 940113 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 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 309 60 TO 89 DAYS 310 90 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 323 180 TO 264 DAYS 330 265 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 313 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 270 SIX MONTHS 292 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 301 ONE MONTH 309 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 305 90 DAYS 308 120 DAYS 313 150 DAYS 317 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 680 60 DAYS 688 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 676 60 DAYS 686 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401130112 940106 REVIEW & OUTLOOK EDITORIAL HEALTH REFORM'S FIRST VICTIM SO IT'S AGREED THE NATION'S WELFARE SYSTEM IS A MORAL AND FISCAL DISASTER A CONSENSUS SEEMS TO HAVE FORMED THAT WELFARE DEPENDENCY MUST BE CURBED SUBSIDIES FOR ILLEGITIMACY QUESTIONED AND OPPORTUNITIES FOR WORK EXPANDED BUT INSTEAD OF CONSTRUCTIVELY USING THE FORCE FROM THIS RARE ALIGNMENT OF THE POLITICAL PLANETS THE CLINTON ADMINISTRATION IS DELAYING ACTION ON WELFARE REFORM MAKING IT UNLIKELY IT WILL PASS CONGRESS THIS YEAR INSTEAD IT WILL SINGLEMINDEDLY PURSUE ITS GRANDIOSE OVERHAUL OF HEALTH CARE ON WHICH THERE IS CLEARLY NO CONSENSUS ON WHAT TO DO EVERY ADMINISTRATION REACHES FORKS IN THE PUBLIC POLICY ROAD WHERE THE DIRECTION IT TAKES SPEAKS VOLUMES ABOUT ITS PRIORITIES THIS IS ONE OF THEM ON MONDAY PRESIDENT CLINTON TOLD HIS CABINET THAT HEALTH CARE WAS SO COMPLEX HE WOULDN'T HAVE TIME TO ATTEND TO WELFARE REFORM UNTIL THE NATION'S HEALTH CARE CONCERNS ARE CURED THE PRESIDENT LASHED OUT AT HIS CRITICS ARGUING THAT REPUBLICANS HADN'T WANTED TO CHANGE WELFARE UNTIL HE TOOK OFFICE THAT'S A STRETCH IT WOULD BE NEWS TO THE REAGAN ADMINISTRATION WHICH WORKED WITH SENATOR DANIEL PATRICK MOYNIHAN IN 1988 TO PASS THE FIRST MAJOR BILL TO MOVE WELFARE RECIPIENTS INTO THE WORK FORCE GOP GOVERNORS TOMMY THOMPSON OF WISCONSIN AND JOHN ENGLER OF MICHIGAN HAVE SIGNED LEGISLATION PHASING OUT SOME WELFARE PROGRAMS THE PRESIDENT IS TRYING TO AVOID A PAINFUL TRUTH PUSHING RADICAL WELFARE REFORM WOULD ALIENATE HIS PARTY'S MULTIPLE LIBERALS WHITE HOUSE OFFICIALS ADMIT THEY'RE CONCERNED ABOUT RECENT STATEMENTS BY LIBERAL HOUSE MEMBERS THAT THEY MIGHT NOT BACK A HEALTH CARE COMPROMISE IF HE CHALLENGED THEIR SACRED WELFARE COWS WELFARE REFORM WOULD ALSO ALIENATE THE UNIONS STILL ANGRY AT THE PRESIDENT FOR WHIPPING THEM ON NAFTA THE ONLY UNIONS THAT ARE GROWING TODAY ARE THOSE FOR GOVERNMENT WORKERS AND THEY FEAR ANY PUBLICSECTOR WORKFARE PROGRAM COULD MEAN FEWER JOBS FOR THEIR MEMBERS THE POLITICS OF THE OPPOSITION TO WELFARE REFORM RAISES AN INTERESTING ISSUE FOR THE PEOPLE ACTUALLY TRAPPED IN WELFARE TO THINK ABOUT THE FACTIONS STANDING IN THE WAY OF RESTORING THEIR DIGNITY ARE MAINLY TRADITIONAL WHITE LIBERALS AND UNIONS BOTH BULWARKS OF THE MODERN DEMOCRATIC PARTY THEY'RE NOT THE ONES SITTING FOR HOURS AT THE HUMILIATION FACTORIES CALLED WELFARE OFFICES BUT THEY SEEM TO FEEL THEY OWN WHAT FORMER SOCIAL WORKER BOB WOODSON CALLS THE POVERTY PENTAGON AND THE PEOPLE DEPENDENT ON IT THE PEOPLE WANTING TO DO SOMETHING ARE OFTEN THOSE WHO KNOW IT ALL TOO WELL GOING ON WELFARE CLOSED A DOOR BETWEEN MY PARENTS THAT NEVER REOPENED SAYS FORMER WELFARE RECIPIENT ROSEMARY BRAY DADDY BECAME ONE OF THE SHADOW MEN WHO WALKED OUT BACK DOORS AS CASEWORKERS CAME IN THROUGH THE FRONT INDEED A GREAT MANY BLACK AMERICANS SUPPORT RADICAL STEPS TO RESTORE THE COUNTRY'S WORK ETHIC A 1992 SURVEY OF BLACKS IN 10 SOUTHERN STATES BY THE ATLANTA CONSTITUTION ASKED DO YOU BELIEVE THAT EVERYONE WHO GETS WELFARE SHOULD BE REQUIRED TO WORK INCLUDING WOMEN WITH YOUNG CHILDREN AN ASTONISHING 81 OF BLACK AMERICANS AGREED NATIONWIDE A FABRIZIO/MCLAUGHLIN POLL LAST AUGUST FOUND 91 OF BLACKS WANTED ABLEBODIED WELFARE RECIPIENTS TO WORK FOR BENEFITS POPULAR DEMAND FOR A RADICAL OVERHAUL OF WELFARE IS SO GREAT THAT A POLITICALLY ACUTE LIBERAL SUCH AS NEW YORK GOVERNOR MARIO CUOMO HAS PUT THE ISSUE FRONT AND CENTER YESTERDAY IN HIS ANNUAL STATE OF THE STATE ADDRESS HE CALLED FOR REDUCING FRAUD BY FINGERPRINTING WELFARE RECIPIENTS AND REQUIRING THAT TEENAGE WELFARE RECIPIENTS EARN THEIR ASSISTANCE THROUGH SCHOOL ATTENDANCE OR PARTTIME WORK LAST NOVEMBER LIBERAL DEMOCRATS IN WISCONSIN HELPED PASS A BILL THAT WILL END ALL WELFARE BY 1998 AND WILL DEVISE A WHOLE NEW SYSTEM BY NEXT YEAR BILL CLINTON WAS ELECTED IN 1992 IN PART BECAUSE HIS PLEDGE TO END WELFARE AS WE KNOW IT CONVINCED MANY VOTERS THAT HE WAS A NEW DEMOCRAT LAST MONTH HE SAID CHARLES MURRAY'S ANALYSIS OF THE PERVERSE EFFECTS OF WELFARE WAS ESSENTIALLY RIGHT SOUNDS GOOD BUT IT'S JUST IMPRESSIVE BLATHER AS TO ACTION HE HAS DECIDED TO STAND WELFARE REFORM IN A CORNER WHILE HE ATTEMPTS A QUIXOTIC FEDERAL TAKEOVER OF THE ONESEVENTH OF THE NATION'S GNP NOW SPENT ON HEALTH CARE IT'S AN INSTRUCTIVE DECISION PEOPLE WITH LESS HUBRIS WOULD HAVE TAKEN ON A MORE DOABLE PIECE OF THE HEALTH CARE ISSUE SAY ENSURING PORTABILITY OF INSURANCE THAT WOULD HAVE LEFT POLITICAL CAPITAL TO DO WELFARE TOO INSTEAD WE GET HILLARY CLINTON'S PIPEDREAM MEANWHILE WE HAVE A WELFARE SYSTEM IN WHICH PEOPLE ARE TRULY SUFFERING PHYSICALLY EMOTIONALLY AND MORALLY AND OBVIOUSLY HAVE BEEN FOR A LONG TIME LARGE PARTS OF OUR GREATEST CITIES ARE A DAILY DISGRACE TO THE COUNTRY'S IDEA OF ITSELF FOR WHATEVER REASON BILL CLINTON IS NOW WANDERING DOWN THE WRONG FORK IN THE ROAD SEE RELATED LETTER LETTERS TO THE EDITOR FATHER'S PAINFUL CHOICE GOT US MEDICAL CARE WSJ JAN 13 1994 9401060083 YY94 MM01 9401130111 940113 WRAP ACCOUNTS BOUND FOR MORE SCRUTINY BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INVESTORS IN WRAP ACCOUNTS COULD BE GETTING MORE INFORMATION SOON THAT WILL HELP THEM DECIDE WHETHER THEIR MONEY AND THEIR TRUST ARE IN THE RIGHT PLACE AT THE OUTSET OF WHAT PROMISES TO BE A BROAD EFFORT TO INCREASE SCRUTINY OF WRAP ACCOUNTS THE SECURITIES AND EXCHANGE COMMISSION PROPOSED THE FIRST SPECIFIC DISCLOSURE RULES IN THIS AREA THESE ACCOUNTS ARE INVESTMENT PROGRAMS SPONSORED BY BROKERDEALERS WHO WRAP TOGETHER ASSETMANAGEMENT FINANCIALPLANNING AND BROKERAGE SERVICES FOR ONE ANNUAL FEE TYPICALLY 3 OF ASSETS THE AGENCY WANTS WRAPACCOUNT SPONSORS TO PROVIDE DESCRIPTIVE BROCHURES TO ACCOUNT HOLDERS SEPARATE FROM THE CURRENTLY MANDATED DOCUMENTS THAT COVER ALL PRODUCTS OFFERED BY INVESTMENT ADVISERS WE HAVE FOUND THAT CURRENT DISCLOSURE ABOUT WRAP FEE PROGRAMS IN GENERAL IS NOT AS CLEAR OR CONCISE AS IT SHOULD BE SAID SEC CHAIRMAN ARTHUR LEVITT BUT BROCHURES ARE JUST THE BEGINNING THIS IS THE FIRST OF THREE STEPS IN OUR ATTEMPT TO COME TO GRIPS WITH WRAP ACCOUNTS SAID BARRY BARBASH DIRECTOR OF THE SEC'S DIVISION OF INVESTMENT MANAGEMENT ONE OF THE SEC'S GOALS IS TO LEARN EXACTLY HOW MANY INVESTORS AND HOW MUCH MONEY ARE IN WRAP ACCOUNTS THE AGENCY HASN'T COLLECTED THAT DATA SINCE WRAP PROGRAMS WERE INTRODUCED IN THE EARLY 1980S AND ESTIMATES OF TOTAL DOLLARS INVESTED VARY WILDLY MR BARBASH SUGGESTED 50 BILLION OR HIGHER SEC COMMISSIONER CARTER BEESE QUOTED FIGURES OF 40 BILLION AND 90 BILLION FROM TWO DIFFERENT NEWS ARTICLES BY A SINGLE REPORTER SIMILARLY THE SEC IS A LITTLE HAZY ABOUT WHAT PROBLEMS INVESTORS MAY BE HAVING WITH WRAP ACCOUNTS THESE INVESTMENT PROGRAMS TEND TO HAVE SYSTEMS FOR DEALING WITH COMPLAINTS SO DISGRUNTLED INVESTORS ARE LESS LIKELY TO CALL THE SEC SAID ROBERT PLAZE ASSISTANT DIRECTOR OF THE SEC'S INVESTMENT MANAGEMENT DIVISION AND BECAUSE WRAP ACCOUNTS REQUIRE LARGE INVESTMENTS FROM THE OUTSET SOMETIMES STARTING AT 100000 ACCOUNT SPONSORS RESPOND TO COMPLAINTS QUICKLY THESE THINGS ARE LIKE VALET SERVICES MR PLAZE SAID NEVERTHELESS SEC CHAIRMAN LEVITT SAID THE AGENCY HAS A NUMBER OF RESERVATIONS ABOUT CERTAIN ASPECTS OF THESE PROGRAMS WE ARE CONCERNED THAT THESE PROGRAMS MAY IMPOSE EXCESSIVE COSTS ON CUSTOMERS WHO MAY NOT REALIZE EXACTLY WHAT SERVICE THEIR FEES ARE BUYING MR LEVITT SAID AT A COMMISSION MEETING YESTERDAY AND THE RELATIONSHIP BETWEEN THE PROGRAM SPONSOR AND THE VARIOUS SERVICE PROVIDERS THAT IT ENGAGES MAY NOT BE ENTIRELY CLEAR TO CUSTOMERS WE WILL BE EXAMINING THESE QUESTIONS FURTHER THE SEC'S FIRST STEP IS THE PROPOSED REQUIREMENT OF A SEPARATE BROCHURE FROM WRAPACCOUNT SPONSORS LAYING OUT THE COST OF THE PROGRAM THE SERVICES PROVIDED CONFLICTS OF INTEREST THAT THE SPONSOR MAY HAVE AND OTHER RELEVANT INFORMATION WRAP ACCOUNTS WOULD HAVE TO DISCLOSE WHAT PERCENTAGE OF THE ANNUAL FEE IS PAID TO THE WRAP MANAGER BUT WOULDN'T HAVE TO DISCLOSE WHAT PERCENTAGE OF THAT FEE IS PAID TO THE BROKER WRAPACCOUNT PROVIDERS WOULDN'T BE REQUIRED TO DISCLOSE PERFORMANCE OF MONEY MANAGERS IF THEY DID CHOOSE TO REPORT PERFORMANCE THEY WOULDN'T BE REQUIRED TO REPORT PERFORMANCE IN A UNIFORM WAY HOWEVER THEY WOULD HAVE TO DISCLOSE THAT THEY WEREN'T APPLYING A UNIFORM STANDARD THE SEC WILL COLLECT COMMENTS ON THE PROPOSAL FOR 45 DAYS BEFORE CONSIDERING A FINAL RULE WRAPACCOUNT INFORMATION CURRENTLY IS PART OF THE BROAD DISCLOSURE STATEMENTS FILED BY INVESTMENT ADVISERS AND UPDATED ANNUALLY MR BARBASH SAID THE PROPOSAL TO OBTAIN MORE INFORMATION ABOUT WRAP ACCOUNTS COULD LEAD TO AN EFFORT TO OVERHAUL DISCLOSURE REQUIREMENTS FOR ALL INVESTMENT ADVISERS THE NEXT STEP FOR WRAP ACCOUNTS PROBABLY WILL BE AN SEC STAFF DIRECTIVE REMINDING WRAPACCOUNT SPONSORS OF THEIR DUTY TO ASCERTAIN THAT WRAP ACCOUNTS ARE SUITABLE INVESTMENTS FOR THEIR CLIENTS AND REMINDING WRAPACCOUNT MANAGERS OF THEIR DUTY TO OBTAIN THE BEST EXECUTION OF CUSTOMER ORDERS MR BARBASH SAID THIRD MR BARBASH SAID THE SEC INTENDS TO HEIGHTEN ITS MONITORING OF WRAP ACCOUNTS INCLUDING INCREASES IN TARGETED INSPECTIONS OF THE LITERATURE AND SALES PRACTICES OF WRAPACCOUNT SPONSORS 9401130110 940113 WHO'S NEWS PUCKETT JOINS MTEL EXPLAINS DEPARTURE FROM IBM LAST YEAR JACKSON MISS INTERNATIONAL BUSINESS MACHINES CORP'S RECENTLY RESIGNED CHIEF STRATEGIST M BERNARD PUCKETT WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF MTEL CORP AND CHIEF EXECUTIVE OF ITS SKYTEL CORP PAGING UNIT MR PUCKETT SURPRISED THE INDUSTRY WHEN HE RESIGNED LATE LAST YEAR AS IBM'S SENIOR VICE PRESIDENT FOR CORPORATE STRATEGY THE 26YEAR IBM EMPLOYEE HAD BEEN IN THE TOP STRATEGY JOB ONLY A FEW MONTHS AND SOME EXECUTIVES SUSPECTED A CLASH WITH IBM'S NEW CHIEF EXECUTIVE IN AN INTERVIEW YESTERDAY MR PUCKETT GAVE THE FIRST PUBLIC EXPLANATION FOR HIS DEPARTURE HE SAID THAT AT THE TIME OF HIS APPOINTMENT TO THE IBM POSITION HE INFORMED CHAIRMAN LOUIS V GERSTNER JR THAT HE HAD ASPIRATIONS TO RUN HIS OWN COMPANY AND COULDN'T COMMIT TO THE NEW POST FOR THE DECADE AS MR GERSTNER SOUGHT AS TIME WENT ON IT BECAME APPARENT THAT MR PUCKETT SHOULD LEAVE HE SAID AND THE TWO MADE A MUTUAL DECISION HE SAID THAT JOHN PALMER CHAIRMAN OF MTEL AND LONGTIME FRIEND CONTACTED HIM AFTER THE NEWS BECAME PUBLIC THAT HE WAS LEAVING ARMONK NYBASED IBM MR PUCKETT 49 YEARS OLD WILL BE CHIEF EXECUTIVE OF SKYTEL AND TWO OTHER MTEL SUBSIDIARIES MTEL INTERNATIONAL INC AND MTEL TECHNOLOGIES INC MR PUCKETT SAID HE WILL BE DEVELOPING MTEL'S LONGRANGE BUSINESS STRATEGY OF COMBINING COMMUNICATIONS AND COMPUTERS AS WELL AS DEVELOPING A NATIONWIDE WIRELESS NETWORK AND COORDINATING MTEL'S MOVE INTO LATIN AMERICAN MARKETS MTEL HAD A 1992 LOSS OF 29 MILLION ON REVENUE OF 1126 MILLION 9401130109 940113 MARCH OF DIMES PLANS TV RADIO CAMPAIGN TO PROMOTE FOLIC ACID NEW YORK THE MARCH OF DIMES BIRTH DEFECTS FOUNDATION IS LAUNCHING A TELEVISION AND RADIO CAMPAIGN TO URGE PROSPECTIVE MOTHERS TO TAKE FOLIC ACID A B VITAMIN TO PREVENT SOCALLED NEURAL TUBE BIRTH DEFECTS THE CAMPAIGN FOLLOWS A RECENT FOOD AND DRUG ADMINISTRATION DECISION ALLOWING MAKERS OF DIETARY SUPPLEMENTS TO CLAIM THAT FOLIC ACID COULD REDUCE DEFECTS SUCH AS SPINA BIFIDA A LEADING CAUSE OF CHILDHOOD PARALYSIS AT A SPEECH SPONSORED BY THE MARCH OF DIMES HERE FDA COMMISSIONER DAVID KESSLER SAID WOMEN OF CHILDBEARING AGE SHOULD TAKE 04 MILLIGRAMS OF FOLIC ACID A DAY BY TAKING A MULTIVITAMIN OR EATING FIVE SERVINGS OF GREEN LEAFY VEGETABLES BEANS AND CITRUS FRUITS A DAY STUDIES HAVE SHOWN THAT AN ESTIMATED 50 OF SERIOUS DEFECTS OF THE BRAIN SKULL AND SPINE KNOWN AS NEURALTUBE DEFECTS CAN BE PREVENTED EACH YEAR IF WOMEN IN THE US CONSUMED THIS AMOUNT OF FOLIC ACID PRIOR TO CONCEPTION AND DURING THE EARLY MONTHS OF PREGNANCY EACH YEAR AN ESTIMATED 2500 BABIES ARE BORN WITH THESE DEFECTS IN THE US 9401130108 940113 INTERNATIONAL BP WILL CLOSE ETHYLENE PLANT IN SOUTH WALES BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH PETROLEUM PLC YESTERDAY SAID IT WILL CLOSE ITS MONEYLOSING ETHYLENE CRACKER IN SOUTH WALES THE BRITISH OIL COMPANY SAID CLOSURE OF THE BAGLAN BAY FACILITY SCHEDULED FOR THE END OF MARCH WILL RESULT IN THE LOSS OF 600 JOBS CLOSING COSTS ALSO WILL BE THE MAIN COMPONENT OF A 200 MILLION 298 MILLION EXCEPTIONAL PRETAX CHARGE IN FOURTHQUARTER RESULTS BP SAID THE ANNOUNCEMENT DIDN'T SURPRISE INDUSTRY WATCHERS BECAUSE A YEAR AGO BP ADDED SIMILAR ETHYLENE CRACKING CAPACITY TO ITS MORE EFFICIENT FACILITY IN GRANGEMOUTH SCOTLAND BP'S DECISION REFLECTS A WIDER NEED BY WEST EUROPE'S PETROCHEMICALS INDUSTRY UNDER PRESSURE FROM OVERCAPACITY AND SLUGGISH ECONOMIES TO LOWER ITS COSTS AND IMPROVE EFFICIENCY THE BAGLAN BAY CRACKER HAD BEEN RUNNING AT ABOUT 55 OF CAPACITY SINCE LAST OCTOBER WHEN IT REOPENED AFTER A MAINTENANCE CLOSURE DURING THE SUMMER THE PLANT HAS AN ANNUAL CAPACITY OF 335000 METRIC TONS THE PLANT PRODUCES ETHYLENE PROPYLENE GASOLINE ETHYL BENZENE AND BENZENE CONCENTRATE A BP OFFICIAL SAID THE BAGLAN BAY CRACKER WAS RACKING UP LOSSES IN THE TENS OF THOUSANDS OF POUNDS BP'S PROFIT HAS RECOVERED SHARPLY SINCE THE COMPANY REPORTED A STUNNING 812 MILLION LOSS FOR THE SECOND QUARTER OF 1992 IT HAS CUT COSTS AND DISPOSED OF ASSETS TO REDUCE DEBT AND CONCENTRATE ON ITS CORE OIL AND GAS ACTIVITIES THE COMPANY HASN'T BEEN ALONE AMONG MAJOR EUROPEAN PETROCHEMICALS PRODUCERS IN REPORTING LOSSES FROM SUCH OPERATIONS WHILE ATTEMPTING TO RESTRUCTURE THEM YET AN INDUSTRY INITIATIVE TO CUT ETHYLENE CAPACITY FAILED LAST MONTH WHEN THE ASSOCIATION OF PETROCHEMICALS PRODUCERS IN EUROPE FOUND INSUFFICIENT SUPPORT FOR ORDERLY REDUCTIONS THAT WOULD HAVE BEEN FINANCED BY A LEVY BASED ON CAPACITY MOST COMPANIES ARE LOATH TO CONCEDE MARKET SHARE GUY PHILLIPS EUROPEAN CHEMICALS ANALYST AT PARIBAS SAID HE DOESN'T SEE BP'S MOVE BEING FOLLOWED BY A WHOLE SPATE OF CLOSURE ANNOUNCEMENTS THE APPE RECKONS A WHOLE STRING OF CLOSURES ISN'T NEEDED ANYWAY IT CALCULATED WEST EUROPEAN ETHYLENE CAPACITY LAST YEAR WAS 183 MILLION TONS AND UTILIZATION WAS 80 TO 85 IN 1994 THE INDUSTRY ASSOCIATION RECKONS NEW PLANTS WILL RAISE CAPACITY TO 194 MILLION TONS WITH SOME MORE BEING ADDED THROUGH PLANT EFFICIENCIES IN ITS ABORTED ATTEMPT TO REDUCE OUTPUT THE APPE HAD BEEN AIMING FOR A CUT OF AT LEAST 15 MILLION TONS 9401130107 940113 WHO'S NEWS BERNARD MAZON QUITS HIS EXECUTIVE POST AT POLICY MANAGEMENT COLUMBIA SC A TOP EXECUTIVE HAS RESIGNED FROM AILING POLICY MANAGEMENT SYSTEMS CORP THE INSURANCE SOFTWARE CONCERN CONFIRMED YESTERDAY THAT BERNARD MAZON STEPPED DOWN AS EXECUTIVE VICE PRESIDENT MR MAZON COULDN'T BE REACHED AND POLICY MANAGEMENT WOULDN'T COMMENT ON THE REASONS FOR HIS DEPARTURE A SUCCESSOR HASN'T BEEN NAMED IN APRIL THE COMPANY SAID ITS FIRSTQUARTER RESULTS WOULD BE WELL BELOW EXPECTATIONS ITS SHARE PRICE FELL 43 IN RESPONSE SINCE THEN POLICY MANAGEMENT'S FINANCIAL REPORTING HAS BECOME THE TARGET OF FEDERAL AND INTERNAL INVESTIGATIONS THE COMPANY HAS REORGANIZED SEVERAL BUSINESS UNITS TO KEEP PACE WITH SHIFTING MARKETS THE COMPANY'S FASTGROWING TOTAL POLICY MANAGEMENT SERVICES WILL BECOME A SEPARATE BUSINESS GROUP RUN BY SENIOR VICE PRESIDENT JAMES BROWN 47 YEARS OLD STEPHEN G MORRISON 47 WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HE IS CURRENTLY A PARTNER WITH NELSON MULLINS RILEY & SCARBOROUGH IN SOUTH CAROLINA 9401130106 940113 ECONOMY US LOATH TO PENALIZE CHINA ON TRADE DESPITE INSUFFICIENT HUMANRIGHTS STEPS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS PAINTED HIMSELF INTO A CORNER ON THE ISSUE OF US TRADE WITH CHINA LAST SPRING WHEN HE RENEWED CHINA'S MOST FAVORED NATION TRADING STATUS MR CLINTON SAID BEIJING MUST MAKE OVERALL SIGNIFICANT PROGRESS IN HUMAN RIGHTS TO WIN RENEWAL AGAIN THIS YEAR BUT CHINA ISN'T COOPERATING NOW THE ADMINISTRATION IS RELUCTANT TO CARRY OUT ITS THREAT FOR FEAR OF DISRUPTING THE HUGE US BUSINESS OPPORTUNITIES AVAILABLE IN CHINA THE WORLD'S FASTESTGROWING ECONOMY THE ADMINISTRATION HAS LAUNCHED A CAMPAIGN TO PERSUADE CHINA THAT IT MUST SHOW HUMANRIGHTS IMPROVEMENTS QUICKLY OR RISK LOSS OF FAVORED TRADE STATUS IT HAS ENLISTED VARIOUS CONGRESSIONAL DELEGATIONS GOING TO CHINA TO DELIVER THAT MESSAGE MOST RECENTLY IT ASKED REP RICHARD GEPHARDT D MO THE HOUSE MAJORITY LEADER TO ADD A STOP IN CHINA TO HIS CURRENT TRIP TO ASIA SO THAT HE COULD TELL BEIJING'S LEADERS ABOUT THE NEED FOR SUBSTANTIAL PROGRESS ON HUMAN RIGHTS IN THAT COUNTRY THE STATE DEPARTMENT'S ANNUAL HUMANRIGHTS REPORT WHICH WILL BE PUBLISHED SOON IS EXPECTED TO SAY THAT CHINA HASN'T YET MADE SUFFICIENT PROGRESS TO JUSTIFY RENEWAL OF MFN UNDER MR CLINTON'S STANDARD ACCORDING TO A REPORT IN THE NEW YORK TIMES THAT WAS CONFIRMED BY PEOPLE FAMILIAR WITH THE DRAFT OF THE REPORT MOREOVER A US CUSTOMS SERVICE MEMO SAYS THAT CHINA ALSO ISN'T LIVING UP TO ITS COMMITMENT TO PERMIT THE US TO MONITOR CERTAIN FACILITIES TO MAKE SURE BEIJING ISN'T EXPORTING GOODS MADE BY PRISON LABOR TO THE US THE MEMO SAYS CHINA HAS ALLOWED US OFFICIALS TO VISIT ONLY ONE OF THE FIVE PRISON FACILITIES THAT THE US ASKED TO INSPECT DURING HIS PRESIDENTIAL CAMPAIGN MR CLINTON CRITICIZED PRESIDENT BUSH FOR CODDLING DICTATORS IN BEIJING BY TRYING TO MAINTAIN A BROAD RELATIONSHIP WITH CHINA BUT LAST FALL FOLLOWING A POLICY REVIEW THE CLINTON ADMINISTRATION ADOPTED ITS OWN ENGAGEMENT STRATEGY TOWARD BEIJING SENIOR OFFICIALS SAY THE POLICY CHANGE WAS PROMPTED BY ECONOMIC CONCERNS AND BY THE DESIRE OF OTHER ASIAN NATIONS WHICH ARE FRIGHTENED BY CHINESE MUSCLEFLEXING TO SEE THE US MAINTAIN GOOD TIES WITH BEIJING SINCE THEN THE ADMINISTRATION HAS LIFTED SEVERAL RESTRICTIONS PUT IN PLACE AFTER CHINA'S MASSACRE OF STUDENTS AT TIANANMEN SQUARE IN 1989 HIGHLEVEL MILITARY EXCHANGES WERE RESUMED IN NOVEMBER THE SAME MONTH MR CLINTON MET IN SEATTLE WITH CHINA'S PRESIDENT JIANG ZEMIN THE CLINTON MEETING WAS THE GREATEST PLUM OF ALL IT WAS THE ULTIMATE RECOGNITION THAT THE STAIN OF TIANANMEN HAS BEEN REMOVED SAYS MIKE JENDRZEJCZYK WASHINGTON DIRECTOR OF ASIA WATCH A HUMANRIGHTS GROUP THERE HAVE BEEN SIGNS THAT SOME ADMINISTRATION OFFICIALS WOULD LIKE TO REMOVE THE HUMANRIGHTS ISSUE FROM THE ANNUAL MFN DEBATE BECAUSE THEY DON'T WANT IT TO BE THE CONTROVERSIAL CENTERPIECE OF US POLICY TOWARD CHINA LAST SEPTEMBER FOLLOWING A TRIP TO CHINA JOHN SHATTUCK ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS REPORTED SCANT HUMANRIGHTS PROGRESS THERE BUT HE ADDED THAT IF SUBSTANTIAL PROGRESS OCCURRED BY JUNE THE ADMINISTRATION MIGHT NOT ONLY RENEW MFN FOR A YEAR BUT WOULD CONSIDER ENDING THE PRACTICE OF LINKING BEIJING'S TRADE STATUS TO SPECIFIC HUMANRIGHTS STANDARDS US OFFICIALS INSISTED THAT MR SHATTUCK'S STATEMENT WASN'T MEANT TO SUGGEST A POLICY SHIFT AND IN A PUBLISHED INTERVIEW LAST MONTH THE US AMBASSADOR TO CHINA STAPLETON ROY SAID THAT IMPROVEMENT IN THE LIVES OF CHINA'S CITIZENS RESULTING FROM ECONOMIC LIBERALIZATION SHOULD ALSO BE TAKEN INTO ACCOUNT SENIOR US OFFICIALS INSIST THE ADMINISTRATION HAS NO IMMEDIATE PLANS TO STOP LINKING MFN RENEWAL TO SPECIFIC HUMANRIGHTS STANDARDS AN OFFICIAL ADDS HOWEVER THAT WE WOULD LIKE TO SEE ENOUGH PROGRESS SO WE COULD GO BACK TO THE PRE1989 STANDARD WHICH WAS BASED MOSTLY ON WHETHER COMMUNIST COUNTRIES PERMITTED FREE EMIGRATION ROBERT RUBIN HEAD OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL IS AMONG THOSE WHO BELIEVE THAT REVOKING CHINA'S TRADE STATUS WOULD HARM US COMPANIES MORE THAN CHINA HUMANRIGHTS ACTIVISTS WORRY THAT MR CLINTON WON'T DISRUPT CHINA TRADE AS LONG AS CHINA MAKES SOME MINIMAL PROGRESS ON HUMAN RIGHTS IN THE MEETINGS WITH MR CLINTON AND OTHER OFFICIALS IN SEATTLE CHINA DISCUSSED RELEASING A HANDFUL OF DISSIDENTS AND SICK PRISONERS FROM JAIL RESOLVING SOME CASES OF PEOPLE WHO WANT EXIT VISAS AND PROMISING MORE COOPERATION ON MONITORING PRISON LABOR MEANWHILE IN A RECENT ADDRESS HERE CHINA'S AMBASSADOR TO THE US CITED THE GOOD OPPORTUNITIES FOR AMERICAN BUSINESSES TO INCREASE THEIR SHARE IN THE CHINA MARKET AND SAID HE HOPED THE ADMINISTRATION WOULD MAKE A SENSIBLE DECISION ON THE MFN ISSUE 9401130105 940113 WHO'S NEWS TRANSNATIONAL RE CORP TRANSNATIONAL RE CORP NEW YORK FRANKLIN D HAFTL WILLIAM L MUSSER AND STEPHEN L WAY WERE ELECTED DIRECTORS OF THIS REINSURANCE COMPANY INCREASING THE BOARD'S SIZE TO FIVE MR HAFTL 59 YEARS OLD IS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF UNIONE ITALIANA REINSURANCE CO OF AMERICA INC MR MUSSER 51 IS A GENERAL PARTNER OF BARKER LEE & CO AN INVESTMENT MANAGEMENT FIRM AND MR WAY 44 IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF HCC INSURANCE HOLDINGS INC 9401130104 940113 MERCEDES TO CUT SPENDING ENTER NEW CAR SEGMENTS BY ROBERT L SIMISON AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT IN HIS OWN WAY HELMUT WERNER IS TRYING TO STEER MERCEDESBENZ AG ONTO THE TRACK ALONG WHICH CHRYSLER CORP HAS BEEN RACING ONE YEAR INTO HIS MAKEOVER OF THE GERMAN LUXURYCAR COMPANY THE CHAIRMAN OF DAIMLERBENZ AG'S MOST PROMINENT UNIT DESCRIBED HOW HE INTENDS TO OFFER VEHICLES IN SEGMENTS WHERE MERCEDESBENZ HASN'T HAD A PRESENCE WHILE CUTTING SPENDING ON NEW PRODUCTS CHRYSLER HAS BECOME THE TOAST OF THE CAR WORLD BY PULLING OFF A SIMILAR FEAT SPECIFICALLY MR WERNER DISCLOSED THAT IN THE NEXT FIVE YEARS SPENDING FOR DEVELOPMENT OF NEW PRODUCTS WILL BE CUT TO 187 BILLION MARKS 1074 BILLION 11 LESS THAN IN THE PAST FIVE YEARS DURING THE PERIOD MERCEDESBENZ EXPECTS TO INTRODUCE A NEW LUXURY SPORTUTILITY VEHICLE TO OPEN A FACTORY IN ALABAMA TO BUILD IT AND TO ADD A SMALL CITY CAR AND A SPORTY CONVERTIBLE AMONG OTHER PRODUCTS WE WILL GET MUCH MORE FOR OUR INVESTMENT THAN WE DID BEFORE MR WERNER SAID THE EXECUTIVE WAS INTERVIEWED IN THE DETROIT AREA WHILE SQUEEZED SHOULDERTOSHOULDER IN THE BACK SEAT OF A CADILLAC ON THE WAY TO CATCH A PLANE TO MEXICO WHERE HE WAS TO OPEN A NEW BUS FACTORY WHEN ASKED ABOUT THE WORLD'S TOUGHEST COMPETITORS TODAY MR WERNER LISTED TRADITIONAL ARCHRIVAL BAYERISCHE MOTOREN WERKE THE LEXUS DIVISION OF TOYOTA MOTOR CORP AND CHRYSLER THE US AUTO MAKER HAS BEEN SETTING NEW STANDARDS FOR LEAN PRODUCT DEVELOPMENT AND HAS MANAGED TO EXTEND AND UPGRADE ITS PRODUCT LINE IN THE US WITH A STRING OF HITS MR WERNER SAID HIS EFFORTS TO INTRODUCE A MERCEDESSPECIFIC LEAN LOGIC HAVE LED TO COST REDUCTIONS OF ABOUT FOUR BILLION MARKS A YEAR SINCE HE TOOK OVER OPERATING CONTROL IN JANUARY 1993 THAT PARTLY REFLECTS THE ELIMINATION OF 14300 JOBS LAST YEAR MR WERNER SAID A FURTHER 8000 JOBS ARE TO BE CUT THIS YEAR DOWN FROM AN EARLIER PLAN TO ELIMINATE 13300 IN 1994 HE SAID MERCEDESBENZ'S LABOR UNIONS PERSUADED THE COMPANY TO LOWER ITS SIGHTS BY AGREEING TO GREATER JOB FLEXIBILITY DESPITE THE DISMAL ECONOMIC OUTLOOK FOR EUROPE MR WERNER WAS BULLISH ABOUT MERCEDESBENZ'S PROSPECTS FOR THIS YEAR HE FORECAST THAT THE COMPANY'S CAR SALES WOULD RISE ABOUT 12 TO 570000 VEHICLES WORLDWIDE ABOUT 70000 OF THOSE CARS WOULD BE SOLD IN THE US HE SAID COMPARED WITH 1993 SALES OF ABOUT 61000 MERCEDESBENZ'S ENTRY INTO NEW SEGMENTS WILL EXPAND THE COMPANY'S VOLUME BY NEARLY 250000 VEHICLES A YEAR TO AROUND 850000 WITHIN THE NEXT 10 YEARS MR WERNER SAID THE BIGGEST SELLER IS EXPECTED TO BE A NEW SUBCOMPACT CITY CAR THAT MERCEDESBENZ IS PREPARING TO INTRODUCE IN 1997 THAT VEHICLE IS EXPECTED TO BE PRICED IN GERMANY AROUND 30000 MARKS 9401130103 940113 REVIEW & OUTLOOK EDITORIAL A HARD LOOK AT BORIS YELTSIN THESE ARE THE TIMES THAT TRY RUSSIAN SOULS THE ECONOMIC REFORMERS ARE IN POLITICAL RETREAT SHOCK THERAPY IS DENIGRATED BY THE PRIME MINISTER THE CLINTON POLICY OF SUPPORTING BORIS YELTSIN WHICH WILL BE MUCH IN EVIDENCE DURING THE US PRESIDENT'S VISIT TO MOSCOW TODAY HAS CRITICS IN MOSCOW AND WASHINGTON WE'VE SUPPORTED MR YELTSIN AND THE BAND OF REFORMERS SINCE BEFORE THE BEGINNING IT'S TIME TO STEP BACK AND ASK SOME TOUGH QUESTIONS ABOUT WHERE RUSSIA IS GOING DOES WESTERN SUPPORT FOR MR YELTSIN AND THE REFORMERS INVOLVE US IN A QUAGMIRE THIS IS THE CASE MADE BY SOVIETOLOGIST PETER REDDAWAY AND OTHERS THEIR POINT IS THAT RADICAL REFORMERS SUCH AS YEGOR GAIDAR ARE ON THE WAY DOWN AND BY MAINTAINING LINKS THE US DRAGS ITSELF DOWN WITH THEM AND ALIENATES MANY RUSSIANS MR GAIDAR AND HIS FELLOW REFORMERS HAVE INDEED MADE SOME BLUNDERS AND THEY SEEM TO SPEND MUCH OF THEIR TIME FEUDING AMONG THEMSELVES BUT IT IS NOT TRUE THAT THE REFORMIST CAUSE IS LOST EVEN THOUGH SOME OF THE REFORMERS WON'T BE PRESENT IN MR YELTSIN'S NEW SLIMMEDDOWN GOVERNMENT THE HALLMARK OF THAT GOVERNMENT WON'T BE FASTER REFORM OR SLOWER REFORM BUT SELFCONTRADICTION FOREIGN POLICY MAY BEAR THE WEST'S CAREFUL ATTENTION BUT AT THE SAME TIME MR YELTSIN HAS JUST APPOINTED YURI BATURIN A PROWESTERN REFORMER AS HIS SECURITY ADVISER RECENTLY WE DETAILED SOME OF THE MEASURES TO ACCELERATE PRIVATIZATION THAT MR YELTSIN HAS UNDERTAKEN SINCE THE ELECTION BUT THE REFORMERS SUFFERED A DEFEAT LAST WEEK WHEN THE GOVERNMENT DECIDED TO UNIFY THE RUSSIAN AND BELARUS ECONOMIES NOW THERE WILL BE TWO CENTERS FOR THE EMISSION OF RUBLES MOSCOW AND MINSK THAT'S ONE OF MANY RECENT GOVERNMENT POLICIES THAT IS SURE TO BOOST INFLATION THE MEDIA WILL TEND TO EMPHASIZE THE BAD POLICIES BECAUSE THE TURNING AWAY FROM REFORM THEME IS DRAMATIC THE WEST COULD SIMPLY STAND BACK FROM THIS CONFUSION AND VOICE SUPPORT FOR DEMOCRATIC INSTITUTIONS THAT'S PRISTINE BUT THE FACT IS THAT WITHOUT WESTERN PRESSURE MR GAIDAR AND THE REST MIGHT HAVE BEEN JETTISONED FROM THE GOVERNMENT LONG AGO STAYING INVOLVED RISKS GETTING OUR HANDS DIRTY BUT IT ALSO MEANS MAKING A DIFFERENCE THE US SHOULD SUPPORT THE ENTIRE REFORM CAMP RATHER THAN INDIVIDUALS RUSSIA IS SUFFERING FROM A CRISIS OF AUTHORITY NOBODY LISTENS TO ANYBODY ELSE SO HOPES OF SEQUENCING A THERAPY ARE DELUSIONAL ON PAPER WE HAVE SEVERAL PROBLEMS WITH THE GAIDAR APPROACH ITS TAX POLICY IS OVERLY INFLUENCED BY IMFSTYLE AUSTERITY TAX RATES ARE CRUSHING BUT IT IS THE ONLY REFORM POLICY ON OFFER RUSSIA DOESN'T HAVE A VACLAV KLAUS THE CZECH LEADER WHO SPENT YEARS INSIDE HIS IRON CURTAIN COUNTRY READING TEXTS BY CLASSICAL ECONOMISTS THE REFORM IS NOT FATALLY FLAWED AND AS WE SAY THE PAPER POLICY IS FAR REMOVED FROM REAL LIFE IT COULD BE ARGUED THAT EXTORTIONISTS HAVE GREATER INFLUENCE ON BUSINESS PLANNING THAN GOVERNMENT THE MOST IMPORTANT THING IS TO KEEP PRIVATIZATION MOVING THE CURRENT PAIN IS NOT CAUSED BY RADICAL REFORM BUT BY THE COLLAPSE OF THE COMMUNIST APPARATUS SO DISMANTLING THE APPARATUS IS PARAMOUNT AT THAT THE GOVERNMENT IS SUCCEEDING THE MONETARY MESS CONSTITUTES A MASSIVE WELFAREBRIBERY SCHEME WE DON'T DEFEND IT BUT CAN AT LEAST SEE A RATIONALE THE HUGE EMISSIONS WERE DELIVERED TO FACTORIES TO PREVENT LARGESCALE UNEMPLOYMENT THEY DEFLECTED MANAGERS AND GENERALS FROM WAGING A REBELLION AGAINST PRIVATIZATION IF THE WEST WANTS TO THROW A FEW BILLION DOLLARS AT THE RUSSIANS TO HELP WIN PUBLIC SUPPORT FOR REFORM THAT'S FINE BUT SURELY THERE IS A BETTER WAY THAN THROUGH THE IMF WITH ITS GROWTHCRIPPLING CONDITIONS RUSSIA NOW HAS WILD CAPITALISM WILL IT EVER BECOME ORDERLY OR WILL IT JUST SPIN FURTHER OUT OF CONTROL WE START FROM THE PREMISE THAT YOU CAN'T BUILD A MARKET ECONOMY AND THEN DROP IT BY LEGAL FIAT ON A COUNTRY THE INSTITUTIONS THAT ORGANIZE A MARKETPLACE HAVE TO EMERGE ORGANICALLY THIS TAKES TIME IN THE MEANTIME CORRUPTION IS EVERYWHERE AND MANY UNSAVORY PEOPLE GET RICH THERE ARE SIGNS THAT THINGS ARE SETTLING DOWN THE NEW CONSTITUTION WHILE FAR FROM PERFECT IS THE BASIS FOR A MANAGEABLE POLITICAL PROCESS YOUNG PEOPLE HAVE ABSORBED WESTERN PRACTICES WITH AMAZING SPEED SOME OF THE BIG COMMERCIAL BANKS AND INVESTMENT FUNDS ARE RUN BY SERIOUS FINANCIAL MANAGERS THE PRIVATIZED COMPANIES ARE MOVING GRADUALLY TO CREATE THEIR OWN TRADING NETWORKS THE GOOD ONES HAVE AN INTEREST IN INSTITUTING HONEST PRACTICES BORIS YELTSIN IS NOT A ROLE MODEL FOR POLICY WONKS THE WAY MIKHAIL GORBACHEV WAS BUT HIS INSTINCTS ARE TO GO TO THE POLLS WHEN IN TROUBLE AND OFTEN ENOUGH HE HAS SIDED WITH THE REFORMERS HE'S THE ONLY TRAIN LEAVING THE STATION THE WEST SHOULD BE WITH HIM TRYING TO SHOW THE RIGHT DIRECTION 9401130102 940113 BUSINESS BRIEFS KLA INSTRUMENTS CORP EXPECTS TO REPORT NET INCOME OF 30 CENTS A SHARE ON SALES OF ABOUT 57 MILLION FOR ITS FISCAL SECOND QUARTER ENDED DEC 31 IN THE YEAREARLIER QUARTER THE MAKER OF EQUIPMENT USED IN SEMICONDUCTOR MANUFACTURING HAD NET INCOME OF 14 MILLION OR SEVEN CENTS A SHARE ON SALES OF 387 MILLION ACRES GAMING INC RECEIVED A CONTRACT FOR ITS CONCEPT III SLOT MERCHANDISING SYSTEM FROM RIO SUITE HOTEL & CASINO LAS VEGAS THE CONTRACT IS VALUED AT MORE THAN 15 MILLION AND INSTALLATION WILL BEGIN IN FEBRUARY AIR METHODS CORP LAUNCHED A JOINT VENTURE TO PROVIDE AIR MEDICAL SERVICE IN MEXICO THE COMPANY AIR MEDICA MOVIL SA IS BASED IN MEXICO CITY AND IS PARTIALLY OWNED BY MEDICA MOVIL SA TERMS WEREN'T DISCLOSED CLIFFS DRILLING CO WILL DRILL WELLS IN VENEZUELA FOR CORPOVEN SA AND IN MEXICO FOR PEMEX UNDER THE TERMS OF SEVERAL NEWLY AWARDED CONTRACTS THAT WILL GENERATE ABOUT 50 MILLION IN REVENUE DURING 1994 AND 1995 9401130101 940113 WORKPLACE MORE COMPANIES EXPERIMENT WITH WORKERS' SCHEDULES BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL BENDING SOME PREVIOUSLY RIGID RULES BIG COMPANIES ARE OFFERING MORE EMPLOYEES FLEXIBLE WORK SCHEDULES FLEXIBLE SCHEDULES HAVE LONG BEEN USED BY MANAGERS TO RETAIN HIGHLY PRIZED EMPLOYEES WHO MIGHT OTHERWISE LEAVE SAYS RODGERS & ASSOCIATES A UNIT OF WORK/FAMILY DIRECTIONS INC BOSTON BUT NOW SOME OF THE COUNTRY'S MAJOR CORPORATIONS ARE CONDUCTING EXPERIMENTS IN FLEXIBILITY ON HUNDREDS OF WORKERS WITH ALL KINDS OF ABILITIES AND NEEDS THE COMPANIES ARE PUSHING FLEXIBLE WORK ARRANGEMENTS DOWN THROUGH THE RANKS AS A KIND OF SHOCK TREATMENT FOR STRESSEDOUT WORKERS THEIR GOAL IS NOT SIMPLY TO SATISFY EMPLOYEES' WISHES BUT ALSO TO RAISE OUTPUT THE WORK FORCE TODAY IS SCREAMING FOR FLEXIBILITY SAYS ROBERT LAMBERT EXECUTIVE VICE PRESIDENT HUMAN RESOURCES FOR CARTER HAWLEY HALE STORES INC IF YOU CAN HELP EMPLOYEES MEET THEIR OUTSIDE RESPONSIBILITIES YOU'RE GOING TO HAVE A MORE PRODUCTIVE MORE TURNEDON AND MORE ENERGIZED WORK FORCE AT XEROX CORP TOUGH PRODUCTIVITY OBJECTIVES LED MANAGERS TO LOOK AT WHAT WENDY STARR MANAGER OF LIFECYCLE PROGRAMS AND POLICIES CALLS RADICAL MEASURES TO IMPROVE OUTPUT WE'RE NOT TRYING TO MAKE EVERYBODY FEEL GOOD BY PROMOTING FLEXIBLE SCHEDULES SHE SAYS THE RESULT NEEDS TO BE A RECOGNITION THAT FLEXIBILITY IS A BUSINESS TOOL JIM EDWARDS ONE OF THE MANAGERS XEROX CHOSE TO TEST THE LIMITS OF FLEXIBILITY USED SHOCK TREATMENT TO GET THE EXPERIMENT ROLLING AT HIS UNIT KNOWN FOR HIS MOTTO WMB FOR WE MEAN BUSINESS MR EDWARDS THE TOUGHTALKING CONTROLLER OF XEROX'S ADMINISTRATIVE CENTER IN DALLAS HAD LONG BANNED FLEXIBLE SCHEDULES IN FAVOR OF AN 8TO5 REGIMEN BUT LAST FEBRUARY MR EDWARDS STEPPED TO THE PODIUM AT AN ANNUAL EMPLOYEE MEETING AND DROPPED A BOMB STARTING RIGHT AWAY HE TOLD 300 ASSEMBLED WORKERS EMPLOYEES COULD SET THEIR OWN HOURS THIS IS HIGH RISK TO ME HE TOLD HIS STUNNED SUBORDINATES BUT I AM WILLING TO TAKE THAT RISK MR EDWARDS SAYS HIS SURPRISE ANNOUNCEMENT WAS A NICE ICEBREAKER TO START A NEEDED CULTURAL CHANGE IN MOTION WORKERS IN HIS DIVISION WHICH HAS A HIGH PROPORTION OF SINGLE PARENTS AND DUALCAREER COUPLES WITH CHILDCARE AND FAMILY PROBLEMS FELT STRESSED BY RIGID SCHEDULES ACCORDING TO INTERVIEWS BY FORD FOUNDATIONFUNDED RESEARCHERS WHO ARE STUDYING THE DALLAS EXPERIMENT BUT WHILE MANAGERS IN THE DIVISION HAD ADOPTED CORPORATE POLICIES ENCOURAGING FLEXIBILITY EMPLOYEES HESITATED TO USE THEM MANY THOUGHT THEIR BOSSES DIDN'T APPROVE OF UNUSUAL SCHEDULES AND FELT THEY HAD TO HIDE PERSONAL AND FAMILY CONFLICTS AT WORK THE RESEARCHERS FOUND THERE WASN'T A TRUST LEVEL THERE MR EDWARDS SAYS I DECIDED I HAD TO DO SOMETHING REALLY DRAMATIC AFTER THE SPEECH THE WHOLE UNIT EXPERIENCED A KIND OF WHIPLASH WITH NEARLY HALF THE EMPLOYEES CHOOSING NEW STARTING TIMES OR COMPRESSED WORKWEEKS REELING FROM THE CHANGES MIDDLE MANAGERS STARTED MEETING WEEKLY TO SHARE PROBLEMS AND SOLUTIONS WE ALL FELT UNEASY SAYS JILL ALLEN A XEROX CUSTOMERSERVICE MANAGER WE WERE STEPPING OUT INTO THE REALM OF THE TOTALLY UNKNOWN BUT 10 MONTHS INTO THE EXPERIMENT EMPLOYEES CONTINUE TO COVER THEIR JOBS WITHOUT MISSING A BEAT MR EDWARDS SAYS ABSENCES HAVE FALLEN BY ONETHIRD TEAMWORK HAS IMPROVED AND WORKER SURVEYS SHOW THAT MORALE HAS RISEN FOLLOWUP INTERVIEWS BY THE FORD FOUNDATION TEAM SHOW EMPLOYEES FEEL THEY HAVE MORE CONTROL OVER THEIR WORK AND ARE DEALING BETTER WITH THEIR CUSTOMERS SAYS LOTTYE BAILYN A MASSACHUSETTS INSTITUTE OF TECHNOLOGY MANAGEMENT PROFESSOR WHO IS HEADING THE RESEARCH XEROX IS PLANNING TO APPLY WHAT IT IS LEARNING IN DALLAS AT ITS STAMFORD CONN HEADQUARTERS THE NEW GENERATION OF EXPERIMENTS REFLECTS INTEREST IN FLEXIBILITY AS A WAY TO IMPROVE TEAMWORK AT CHICAGO'S HARRIS BANK EXECUTIVES FIRST SAW THE LINK BETWEEN PRODUCTIVITY AND WORK SCHEDULES IN A 1991 EMPLOYEE SURVEY RANKING MORE FLEXIBILITY TO GET THEIR JOBS DONE AS WORKERS' NO 1 DESIRE THIS WAS A BIG AHA' FOR SENIOR MANAGEMENT SAYS KIMETHA WALTHER FIRPO WORK AND LIFE PROGRAM COORDINATOR AT HARRIS EMPLOYEES WEREN'T SAYING CUT BACK MY HOURS' THEY WERE SAYING THEY WANTED MORE FLEXIBILITY TO WORK IN AUGUST THE BANK SET A SWEEPING NEW ALTERNATIVESCHEDULING POLICY WITH 11 BUSINESS GOALS INCLUDING IMPROVING PRODUCTIVITY AND REDUCING COSTS MANY EMPLOYEES HAVE SEEN THE CONNECTION IN ONE INSTANCE FOUR COLLECTORS IN THE BANK'S CREDITCARD DIVISION CREATED A SCHEDULE THAT COMBINED 11HOUR AND FOURHOUR WORKDAYS BY SPLITTING RESPONSIBILITY FOR THE EVENING HOURS THAT NO ONE WANTED THEY ALLOWED EACH TO FASHION A SCHEDULE THAT WAS BEST FOR THEM THE RESULT HAS BEEN INCREASED COVERAGE OF EARLYEVENING HOURS PRIME TIME FOR COLLECTIONS EMPLOYEES FEEL VERY COMMITTED TO GETTING RESULTS SO THEY CAN MAINTAIN THE SCHEDULES THAT ARE WORKABLE FOR THEM SAYS MINERVA SOLANO A HARRIS BANK COLLECTION MANAGER FLEXIBILITY ISN'T FOR EVERYBODY MANY COMPANIES HAVE TRIED COMPRESSED WORK WEEKS ONLY TO HAVE EMPLOYEES REBEL UPON REALIZING THAT 10HOUR OR 12HOUR WORK DAYS ARE JUST TOO LONG OTHERS HAVE DITCHED WORKATHOME SETUPS BECAUSE EMPLOYEES COULDN'T WORK UNSUPERVISED OR MISSED THEIR COWORKERS AT THE OFFICE STILL OTHERS FIND EMPLOYEES CAN'T WORK TOGETHER WELL ENOUGH TO COORDINATE FLEXIBLE SCHEDULES BUT AMONG THOSE EMPLOYERS TRYING FLEXIBILITY SOME CITE SHARP GAINS TO EXTEND SERVICE HOURS STRIDE RITE CORP PUT THE CUSTOMERSERVICE UNIT OF ITS SPERRY TOPSIDER DIVISION ON FLEXIBLE SCHEDULES THE RESULT NEARLY 30 HOURS HAVE BEEN ADDED TO THE UNIT'S STANDARD 40HOUR WORK WEEK BUT BECAUSE EMPLOYEES ARE STRETCHED THINNER DURING CERTAIN PERIODS AND CAN COMPLETE CLERICAL TASKS FASTER IN THE NEWLY ADDED EVENING HOURS COSTS HAVE INCREASED ONLY ABOUT 3 WHAT WE'RE SEEING IS THAT IF YOU ALLOW PEOPLE TO HAVE CONTROL OVER THEIR SCHEDULE PRODUCTIVITY SHOOTS WAY UP SAYS KAREN LEIBOLD STRIDE RITE'S DIRECTOR OF WORK/FAMILY PROGRAMS GIVING EMPLOYEES MORE FLEXIBILITY ALSO CAN HEAL MORALE AFTER RESTRUCTURING AFTER EMPLOYEES OF GTE CORP'S TELEPHONEOPERATIONS DIVISION UNDERWENT CONSOLIDATION OF SEVEN UNITS AROUND THE COUNTRY INTO ONE IN DALLAS EMPLOYEES PRESSED FOR GREATER FLEXIBILITY STARTLED BY FOCUSGROUP FINDINGS THAT 61 OF PARTICIPANTS HAD LOOKED FOR OTHER JOBS THAT OFFERED MORE FLEXIBILITY GTE BEGAN STUDYING WAYS TO BUILD EMPLOYEE COMMITMENT AND LOYALTY SAYS RICHARD ESQUIVEL ASSISTANT VICE PRESIDENT LABOR AND EMPLOYEE RELATIONS WITHIN A FEW MONTHS LAST YEAR 120 EMPLOYEES PLUNGED INTO A WORKATHOME EXPERIMENT THAT GREW TO PARTTIME WORK AND JOB SHARING THE PILOT HAS EXPANDED AND GTE MANAGERS ARE CONSTANTLY ASTOUNDED AT THE CREATIVITY THAT EMPLOYEES BRING TO BEAR TO MAKE NONTRADITIONAL ARRANGEMENTS WORK SAYS JOE HEARN A GROUP PRODUCT MANAGER ONE WOMAN WHO IS SHARING A PRODUCTMANAGEMENT JOB VOLUNTEERED TO FILL IN FOR HER PARTNER WHEN THE LATTER GOES ON MATERNITY LEAVE SAVING THEIR BOSS THE TROUBLE OF FINDING A BACKUP THOUGH THE JOB SHARERS' BOSS CARLTON BAKER SAYS HE PROBABLY WOULDN'T HAVE THOUGHT OF THE IDEA HIMSELF HE IS SO PLEASED WITH THE INITIATIVE THE WOMEN HAVE SHOWN THAT I HAVE TURNED 100 RESPONSIBILITY OVER TO THEM GTE EXPECTS TO EXPAND THE PILOT TO ANOTHER 200 PEOPLE AT ITS STAMFORD CONN HEADQUARTERS