MOUNT HOLLY NJ FRANKLIN ELECTRONIC PUBLISHERS INC SAID IT WILL PUBLISH AN ELECTRONIC VERSION OF THE COMING FOURTH EDITION OF THE AMERICAN PSYCHIATRIC ASSOCIATION'S WIDELY USED REFERENCE BOOK DIAGNOSTIC AND STATISTICAL MANUAL OF MENTAL DISORDERS THE ELECTRONIC VERSION WILL BE AVAILABLE FOR FRANKLIN'S HANDHELD DIGITAL BOOK SYSTEM 9401130096 940113 FOREIGN EXCHANGE POUND CLIMBS ON BRITAIN'S JOBLESS DROP AS DOLLAR SLIPS AGAINST MARK AND YEN BY GARY ROSENBERGER AND TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE POUND SURGED AGAINST THE DOLLAR AND THE MARK AFTER SOME BULLISH UK EMPLOYMENT NEWS PLEASED INVESTORS BANKING ON A STRONG RECOVERY THERE THE DOLLAR SLIPPED AGAINST THE MARK WHICH BENEFITED FROM SIGNS THAT GERMAN INTERESTRATE CUTS COULD BE SLOW IN COMING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17337 MARKS DOWN FROM 17416 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11220 YEN DOWN FROM 11240 YEN STERLING WAS TRADING AT 15035 UP STRONGLY FROM 14905 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11226 YEN AND AT 17332 MARKS THE POUND JUMPED IN EUROPEAN TRADING AFTER BRITAIN'S EMPLOYMENT DEPARTMENT REPORTED AN UNEXPECTEDLY LARGE DROP IN THE RANKS OF THE UNEMPLOYED THIS WAS WIDELY VIEWED AS REASSURANCE THAT THE BRITISH ECONOMY IS ON THE ROAD TO RECOVERY THE REPORT SHOWED THAT THE NUMBER OF JOBLESS IN THE UK DROPPED 46800 DURING DECEMBER ALMOST DOUBLE THE DECLINE OF 23500 MOST ANALYSTS HAD EXPECTED TRADERS PUSHED UP THE POUND TO A KEY PSYCHOLOGICAL LEVEL AT 260 MARKS FOR THE FIRST TIME SINCE BRITAIN QUIT THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM IN SEPTEMBER 1992 AND WHEN TRADERS SAW THAT THE POUND WAS ABLE TO SURPASS THAT POINT WITHOUT SPARKING INTERVENTION BY THE BANK OF ENGLAND TO HALT THE RISE THEY CONTINUED TO POUR INTO THE CURRENCY PUSHING IT BRIEFLY ABOVE 261 MARKS BEFORE PROFITTAKING EMERGED TO TRIM THE GAINS LATE IN NEW YORK THE POUND TRADED AT 26063 MARKS UP FROM 25959 MARKS TUESDAY TRADERS LOOKED UPON THE UNEXPECTEDLY STRONG JOBS NUMBERS AS EXTRA CONFIRMATION THAT A LONG STERLINGMARK POSITION IS A GOOD IDEA SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK THE UNITED KINGDOM IS A GOOD BET FOR THE FUTURE SAID LYNN TIERNEY VICE PRESIDENT OF SHAWMUT BANK OF BOSTON INTEREST RATES AREN'T GOING LOWER AND INFLATION ISN'T A PROBLEM TRADERS ADDED THAT YESTERDAY'S STRONG MOVE APPEARED TO DISPEL LINGERING CONCERNS THAT THE BANK OF ENGLAND WOULD STEP IN TO HALT ANY STEEP RISE IN THE POUND AGAINST THE MARK BECAUSE OF POTENTIAL DAMAGE TO BRITAIN'S EXPORTS INDEED THE UK TREASURY NOTED IN ITS LATEST MONTHLY REPORT ON MONETARY CONDITIONS THAT WHILE THE POUND HAS RECENTLY RISEN AGAINST THE MARK ITS TRADEWEIGHTED INDEX AGAINST THE CURRENCIES OF ALL BRITAIN'S MAJOR TRADING PARTNERS HAS SHOWN LITTLE MOVEMENT THAT COMMENT APPEARED TO PLAY DOWN THE IMPORTANCE TO BRITISH AUTHORITIES OF THE POUND'S RECENT GAINS AGAINST THE MARK MEANWHILE THE DOLLAR MOVED LOWER AGAINST THE MARK AS TRADERS REVERSED THEIR EXPECTATIONS ON THE NEARTERM MOVEMENT OF INTEREST RATES IN THE US AND GERMANY TRADERS SAID US LABOR DEPARTMENT STATISTICS RELEASED YESTERDAY INDICATING THE PRODUCER PRICE INDEX DECLINED A SEASONALLY ADJUSTED 01 IN DECEMBER ATOP LAST WEEK'S WEAKERTHANEXPECTED EMPLOYMENT FIGURES ABSOLVED THE US FEDERAL RESERVE FROM HAVING TO RAISE INTEREST RATES ANY TIME SOON LATE LAST YEAR MANY WERE PREDICTING THAT THE FED WOULD RAISE INTEREST RATES DURING THE FIRST QUARTER TO STEM INFLATIONARY PRESSURES TRADERS ALSO HAD BEEN EXPECTING THE BUNDESBANK TO LOWER RATES IN JANUARY BECAUSE OF CONTINUING RECESSION AND HIGH UNEMPLOYMENT BUT YESTERDAY GUNTRAM PALM A MEMBER OF THE CENTRAL BANK'S POLICYMAKING PANEL SAID HE WAS RATHER SKEPTICAL THAT THE BANK WOULD TAKE SUCH ACTION SOON 9401130095 940113 WHO'S NEWS KODAK NAMES MORLEY TO POST ROCHESTER NY EASTMAN KODAK CO NAMED MICHAEL P MORLEY 50 YEARS OLD SENIOR VICE PRESIDENT AND DIRECTOR OF HUMAN RESOURCES A NEW TITLE AT THE PHOTOGRAPHY AND HEALTHCARE CONCERN MR MORLEY SUCCEEDS JOHN R MCCARTHY 62 WHO WILL RETIRE FEB 1 AS SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE RELATIONS MR MORLEY HAS SERVED AS VICE PRESIDENT AND GENERAL MANAGER FOR CONSUMER IMAGING IN THE US AND CANADA REGIONS INDUSTRY WATCHERS CALL THE MOVE A GOOD FIT FOR MR MORLEY SUCCEEDING MR MORLEY WILL BE ALEXANDER V WASILOV 40 WHO HAS BEEN GENERAL MANAGER OF MARKETING AND PRODUCT PLANNING FOR CONSUMER IMAGING IN THE US AND CANADA REGIONS SUCCEEDING MR WASILOV WILL BE JEROME W JOHNSON 45 WHO WAS NAMED GENERAL MANAGER AND VICE PRESIDENT OF NATIONAL SALES FOR CONSUMER IMAGING IN THE US AND CANADA A NEW TITLE 9401130094 940113 INTERNATIONAL METALLGESELLSCHAFT'S FATE COULD BE SET AT BANKERS MEETING BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT A BANKERS MEETING SET FOR THIS MORNING COULD DECIDE WHETHER METALLGESELLSCHAFT AG'S NEXT ANNOUNCEMENT IS A BANKRUPTCY DECLARATION YESTERDAY MORE THAN 100 BANK CREDITORS FAXED THEIR DECISIONS ON THE COMPANY'S PROPOSED 34BILLIONMARK 195 BILLION FINANCIAL RESCUE PACKAGE FOR THE METALS ENGINEERING AND TRADING GROUP BUT THE PLAN WAS IN JEOPARDY AS A HANDFUL OF HOLDOUTS DEMANDED REVISIONS BEFORE GIVING APPROVAL THE RESPONSES ARE TO BE ASSESSED BY A STEERING COMMITTEE OF LEADING BANK CREDITORS THIS MORNING ACCORDING TO A SPOKESMAN FOR DEUTSCHE BANK AG WHICH HEADS THE PANEL AN ANNOUNCEMENT OF THE OUTCOME IS EXPECTED LATER TODAY THERE WILL BE NO MORE NEGOTIATIONS IT IS A PACKAGE THAT MUST BE TAKEN AS A WHOLE SAID A DEUTSCHE BANK SPOKESMAN IF SOME BANKS REJECT THE PLAN THEN THEY MUST LIVE WITH THE STIGMA OF BANKRUPTING METALLGESELLSCHAFT HE SAID THE COMPANY'S RESTRUCTURING PLAN ASKS BANKS TO CONVERT 13 BILLION MARKS IN CREDITS INTO CONVERTIBLE PROFITSHARING EQUITY AND EXTEND A NEW 700MILLIONMARK CREDIT LINE THE PLAN ALSO CALLS FOR A NEW SHARE OFFERING VALUED AT 14 BILLION MARKS METALLGESELLSCHAFT HAS DECLARED THAT IT WOULD ENTER LIQUIDATION PROCEEDINGS IF THE PLAN DIDN'T GO THROUGH THE COMPANY'S BIG SHAREHOLDERS HAVE CONDITIONED THEIR PARTICIPATION IN THE NEW SHARE OFFERING ON THE BANKS' ACCEPTING THE CREDITRESTRUCTURING PART OF THE PACKAGE THE LASTMINUTE UNCERTAINTY ERASED MUCH OF THE RECENT GAINS FOR METALLGESELLSCHAFT'S BATTERED STOCK PRICE ON THE FRANKFURT STOCK EXCHANGE WHERE IT FELL 10 MARKS TO 226 MARKS YESTERDAY THE MOST OUTSPOKEN OPPONENT OF THE PLAN NORDDEUTSCHE LANDESBANK OF HANOVER ONE OF THE COMPANY'S BIG GERMAN CREDITORS SAID IT WOULD REJECT THE PLAN UNLESS DEUTSCHE BANK AND DRESDNER BANK AG ASSUMED A BIGGER SHARE OF THE BURDEN AMONG OTHER DEMANDS 9401130092 940113 FERC WITHDRAWS APPROVAL OF MERGER OF PSI CG&E CALLS FOR NEW TALKS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL ENERGY REGULATORY COMMISSION WITHDREW ITS EARLIER CONDITIONAL APPROVAL OF A PLANNED MERGER BETWEEN PSI RESOURCES INC AND CINCINNATI GAS & ELECTRIC CO BUT LEFT THE DOOR OPEN FOR THE COMBINATION TO PROCEED THE TWO MIDWESTERN CONCERNS ARE SEEKING TO FORM A NEW COMPANY TO BE KNOWN AS CINERGY CORP WHICH WOULD RANK AS THE NATION'S 13THLARGEST INVESTOROWNED UTILITY THE PLAN TO COMPLETE THE MERGER BY MIDYEAR COULD NOW BE PUSHED BACK INTO THE THIRD QUARTER THEY SAID YESTERDAY IN AUGUST FERC GRANTED CONDITIONAL APPROVAL OF THE TWO COMPANIES' MERGER BUT SINCE THEN A NUMBER OF SOCALLED INTERVENORS INCLUDING STATE REGULATORY AGENCIES FROM OHIO AND KENTUCKY AND CERTAIN BIG ENERGY CUSTOMERS FILED FOR RECONSIDERATION OF VARIOUS ASPECTS OF FERC'S AUGUST ORDER THEY CONTEND AMONG OTHER THINGS THAT STATE COMMISSIONS AS WELL AS FERC SHOULD BE ALLOWED TO RULE ON THE PLANNED INTERSTATE MERGER FERC SIGNED OFF ON THE MERGER WITH THE UNDERSTANDING ENCOURAGED THE COMMISSION SAYS BY PSI AND CG&E STATEMENTS THAT STATE REGULATORS WOULD BE GRANTED SUCH AUTHORITY BUT PSI PLAINFIELD IND AND CG&E CINCINNATI HAVE SUBSEQUENTLY CONTENDED THAT STATE CLEARANCE ISN'T REQUIRED BECAUSE OF AMENDMENTS MADE TO THEIR ORIGINAL FILING FERC YESTERDAY SAID IT WAS DEEPLY CONCERNED ABOUT THE STATE OF THE RECORD ON THE ISSUE OF WHETHER THIS MERGER WILL IMPAIR EFFECTIVE REGULATION AT A COMMISSION MEETING YESTERDAY ELIZABETH ANNE MOLER CHAIRMAN OF THE COMMISSION SAID SHE WAS DEEPLY TROUBLED BY REPRESENTATIONS FROM THE TWO COMPANIES IT ORDERED THE INTERVENORS AND THE UTILITIES TO UNDERTAKE SETTLEMENT TALKS UNDER THE GUIDANCE OF AN ADMINISTRATIVE LAW JUDGE THE COMMISSION'S TRIAL STAFF WILL ALSO BE A PARTY TO THE NEGOTIATIONS IF A SETTLEMENT HASN'T BEEN NEGOTIATED WITHIN 60 DAYS OF THE FIRST CONFERENCE FERC SAID IT INTENDS TO ISSUE A FURTHER ORDER SETTING ISSUES FOR A POSSIBLE HEARING JAMES E ROGERS PSI'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE HAVE MADE SIGNIFICANT PROGRESS TOWARD RESOLUTION OF SEVERAL CRITICAL ISSUES THROUGH DIRECT NEGOTIATION WITH STATE REGULATORY COMMISSIONS AND ARE CONFIDENT OF OUR ABILITY TO CONCLUDE A SETTLEMENT SUCCESSFULLY HE NOTED THAT IN NOVEMBER PSI AND CG&E HAD ACTUALLY ASKED THE FERC TO ORDER A SETTLEMENT CONFERENCE BUT EARLIER THIS WEEK ASKED FERC TO SET ASIDE THAT REQUEST IN LIGHT OF PROGRESS MADE THROUGH DIRECT DISCUSSIONS FERC SAID THE COMMISSIONERS HADN'T ACTED ON THE MERITS OF THE ISSUES RAISED BY THE INTERVENORS BUT ONLY SEEKS TO PRECLUDE THE MERGER FROM GOING AHEAD PENDING SETTLEMENT AND COMMISSION REVIEW OF THE SETTLEMENT UNDER TERMS OF THE MERGER PACT WHICH IS PEGGED TO THE PRICE OF CG&E SHARES PSI HOLDERS WOULD RECEIVE CINERGY STOCK WITH AN INDICATED VALUE OF 2737 OR A TOTAL OF 156 BILLION 9401130091 940113 CLINTON TO URGE RUSSIA AT SUMMIT TO CUT EXPORTS OF ALUMINUM ON WORLD MARKET BY ASRA Q NOMANI AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION AS PART OF PRESIDENT CLINTON'S MOSCOW SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN PLANS TO PRESS RUSSIA TO LIMIT ITS EXPORTS OF ALUMINUM TRADE NEGOTIATORS FROM THE US RUSSIA AND EUROPE HAVE HAGGLED FOR MONTHS OVER CHARGES THAT RUSSIAN COMPANIES ARE DUMPING ALUMINUM IN THE WORLD MARKETPLACE AT UNFAIRLY LOW PRICES THIS TRADE DISPUTE IS BEING RAISED AT THE SUMMIT LEVEL PARTLY BECAUSE ALUMINUM HAS BECOME A HUGE RUSSIAN EXPORT AND THE SOURCE OF HARD CURRENCY RUSSIAN ALUMINUM EXPORTS OF ABOUT 16 MILLION METRIC TONS LAST YEAR WERE MORE THAN SIX TIMES THE 1989 LEVEL CRITICS OF THE MOVE CONTEND THAT TWISTING RUSSIA'S ARM TO ACCEPT EXPORT RESTRICTIONS WOULD SEND THE WRONG MESSAGE THAT GOVERNMENT CONTROL AND NOT FREE MARKET SHOULD GUIDE ECONOMIC POLICY IN A BRIEFING WITH REPORTERS US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE ADMINISTRATION IS CONSIDERING SOCALLED VOLUNTARY EXPORTRESTRAINT AGREEMENTS AS ONE INSTRUMENT TO CURB THE FLOOD OF RUSSIAN ALUMINUM INTO THE WORLD MARKET UNDER SUCH ARRANGEMENTS RUSSIA WOULD IMPOSE MAXIMUM EXPORT QUOTAS ON ITS ALUMINUM PRODUCERS US INDUSTRY OFFICIALS ARE HOPING FOR AN ANNUAL LIMIT OF ABOUT 500000 METRIC TONS WITH ANNUAL INCREASES HELD TO 10 IN SUCCEEDING YEARS PRIVATELY A US OFFICIAL SAID THE ADMINISTRATION HAS OPTED TO PRESS FOR THE EXPORTRESTRAINT AGREEMENTS BECAUSE IT WAS DECIDED THIS WAS THE APPROACH THAT HAD THE GREATEST POSSIBILITY OF ACHIEVING THAT FLEXIBLE BALANCE BETWEEN RUSSIA'S NEED TO EARN HARD CURRENCY AND THE EQUAL RIGHT OF US COMPANIES NOT TO BEAR ALL THE BURDEN OF COMPETING WITH THE FLOOD OF LOWPRICED RUSSIAN ALUMINUM EXPORTS RUSSIA AND OTHER MEMBERS OF THE FORMER SOVIET UNION HAVE RELIED ON ALUMINUM EXPORTS AS A SOURCE OF REVENUE SINCE THE COLLAPSE OF THE SOVIET EMPIRE BY SOME ESTIMATES ALUMINUM HAS BECOME RUSSIA'S BIGGEST EXPORT BEHIND ONLY OIL BECAUSE MUCH OF THE ALUMINUM PREVIOUSLY DIVERTED TOWARD DEFENSE WORK IS SOLD OVERSEAS MR KANTOR SAID THE US WILL RAISE THE ISSUE DURING MR CLINTON'S STAY IN MOSCOW ALTHOUGH A RESOLUTION OF THE DISPUTE ISN'T EXPECTED UNTIL AFTER THE CLINTONYELTSIN MEETING WHEN MULTILATERAL ALUMINUM NEGOTIATIONS RESUME IT'S A DIFFICULT AND SERIOUS SUBJECT MR KANTOR SAID RUSSIAN EXPORTS TO THE REST OF THE WORLD INCREASED DRAMATICALLY ALUMINUM PRICES HAVE DROPPED LIKE A ROCK FROM 1 A POUND TO 47 CENTS A POUND WE'RE TRYING TO FASHION A COMMON SOLUTION CRITICS OF EXPORT RESTRAINTS CONTEND THAT SUCH RESTRICTIONS REPRESENT A TYPE OF PROTECTIONISM THAT WOULD CONTRADICT THE CLINTON ADMINISTRATION'S ATTEMPTS TO PROMOTE A FREE MARKET IN RUSSIA MOREOVER THEY ASSERT THAT SUCH RESTRICTIONS WOULD RAISE COSTS FOR ALUMINUM USERS SUCH AS AUTO COMPANIES MANY US AND EUROPEAN ALUMINUM COMPANIES MEANWHILE ARGUE THAT SUCH RESTRAINTS ARE NECESSARY TO AVERT PRODUCTION CLOSEDOWNS AND JOB LOSSES IN THEIR STRUGGLING INDUSTRY LAST MONTH FOR EXAMPLE THE EUROPEAN UNION EXTENDED ITS QUOTAS ON ALUMINUM IMPORTS FROM THE FORMER SOVIET REPUBLICS TO FEB 28 THOSE QUOTAS WERE ORIGINALLY IMPOSED IN AUGUST THE DISPUTE HAS ESCALATED TO THE CURRENT STAGE FOLLOWING FAILED MULTILATERAL NEGOTIATIONS BY THE US RUSSIA AND THE EUROPEAN UNION PREVIOUSLY KNOWN AS THE EUROPEAN COMMUNITY THE US AND EU ARE SCHEDULED TO DISCUSS THE TRADE DISPUTE AGAIN NEXT TUESDAY AND WEDNESDAY IN BRUSSELS AT THE TRADEBUREAUCRAT LEVEL US AND EU OFFICIALS HAVE BEEN TRYING TO PERSUADE RUSSIA TO ACCEPT A MULTIPRONGED SOLUTION INCLUDING AN IMMEDIATE PRODUCTION CUT A RESTRUCTURING OF THE RUSSIAN ALUMINUM INDUSTRY AND A STRATEGY FOR BOOSTING RUSSIAN DOMESTIC DEMAND FOR ALUMINUM PRODUCTS PAUL O'NEILL CHAIRMAN OF ALUMINUM CO OF AMERICA THE WORLD'S BIGGEST ALUMINUM MAKER SAID MR KANTOR'S STATEMENT IS GOOD NEWS THAT INDICATES THE PRESIDENT IS PERSONALLY KNOWLEDGEABLE AND INVOLVED IF THE BRUSSELS TALKS FAIL MR O'NEILL SAID US ALUMINUM PRODUCERS ARE POISED TO FILE ANTIDUMPING COMPLAINTS TO CLOSE THE BORDERS OF THE UNITED STATES TO ALUMINUM AT BELOW FULLCOST PRICES LOW ALUMINUM PRICES A RESULT OF THE WORLDWIDE GLUT ARE SOCKING PRODUCERS ACROSS THE NATION INCLUDING REYNOLDS METALS CO ALUMAX INC KAISER ALUMINUM CORP AND SOUTHWIRE CO STEWART SPECTOR AN INDUSTRY ANALYST WHO WRITES THE SPECTOR REPORT FIGURES THE WORLD'S PRODUCERS WILL ENTER INTO WHAT HE CALLS A VOLUNTARY PRODUCTION CUTBACK AGREEMENT THAT WOULD INCLUDE THE TYPE OF EXPORT LIMITS THE CLINTON ADMINISTRATION IS SEEKING PRODUCERS IN THE FORMER SOVIET REPUBLICS WOULD CUT PRODUCTION AND TEMPORARILY LIMIT EXPORTS TO THE WEST AND PRODUCERS ELSEWHERE WOULD CUT CAPACITY ON A VOLUNTARY INDIVIDUAL BASIS IN EXCHANGE WESTERN ALUMINUM MAKERS WOULD HELP RESTRUCTURE AND MODERNIZE THE INDUSTRY IN THE FORMER SOVIET REPUBLICS 9401130090 940113 NEWS CORP TO HEAR FROM VIEWERS OF FX VIA COMPUTER NETWORK CAMBRIDGE MASS NEWS CORP'S COMPUTER ONLINE SERVICE SAID IT PLANS TO ALLOW VIEWERS OF THE FOX INC BASIC CABLE NETWORK TO GIVE THE TELEVISION PROGRAMMERS A PIECE OF THEIR MIND THE SERVICE DELPHI INTERNET SERVICES CORP SAID THAT EXECUTIVES OF THE NEW FX CHANNEL STARTING JAN 17 WILL BE AVAILABLE FOR LIVE ONLINE DISCUSSIONS WITH VIEWERS ON A REGULAR BASIS DELPHI IS AMONG THE HALFDOZEN LARGEST ONLINE SERVICES PERMITTING COMPUTER USERS TO COMMUNICATE THROUGH THE INTERNET NETWORK AND OFFERING A VARIETY OF INFORMATION SERVICES MEDIA COMPANIES HAVE BEEN TEAMING UP WITH COMPUTER ONLINE SERVICES TO PROVIDE SUBSCRIBERS ADDITIONAL INFORMATION WHILE ALLOWING THEM TO GIVE FEEDBACK TO THE MEDIA COMPANIES NICKELODEON WHICH INTRODUCED A SIMILAR ONLINE FORUM LAST MARCH ON COMPUSERVE AN H&R BLOCK INC UNIT APPEARS TO HAVE BEEN THE FIRST NETWORK TO FORMALIZE AN ONLINE FORUM SINCE THEN HUNDREDS OF MAGAZINES AND NEWSPAPERS WHICH PUBLISH ELECTRONIC EDITIONS HAVE USED ONLINE FORUMS FOR MARKET RESEARCH ANNE SWEENEY CHAIRMAN AND CHIEF EXECUTIVE OF FX SAID THE SERVICE IS GIVING PEOPLE A VOICE IN WHAT THEY SEE ON TV 9401130089 940113 COMMODITIES GRAIN FUTURES PRICES ARE EXPECTED TO SHOOT UP AS USDA RELEASES EVENBLEAKER CROP ESTIMATE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GRAIN FUTURES PRICES ARE EXPECTED TO RALLY SHARPLY TODAY IN RESPONSE TO THE US AGRICULTURE DEPARTMENT'S BLEAKEST ESTIMATE YET OF THE FLOODRAVAGED 199394 US GRAIN CROP AT THE CHICAGO BOARD OF TRADE EARLY ESTIMATES WERE THAT CORN FUTURES PRICES WOULD RISE THREE TO FIVE CENTS A BUSHEL SOYBEAN PRICES WOULD CLIMB SEVEN TO 12 CENTS A BUSHEL AND WHEAT PRICES WOULD BE UP TWO TO FOUR CENTS A BUSHEL THE USDA PEGGED THE US CORN CROP AT 634 BILLION BUSHELS DOWN 164 MILLION BUSHELS FROM THE DEPARTMENT'S NOVEMBER ESTIMATE OF 65 BILLION THE USDA SAID LOW TEST WEIGHTS OF CORN ESPECIALLY CORN GROWN IN THE WESTERN CORN BELT WERE TO BLAME FOR THE DECLINE THE NORMAL TEST WEIGHT FOR CORN IS ABOUT 56 POUNDS PER BUSHEL HOWEVER THE SATURATION OF MIDWEST FARMLAND BY DRENCHING RAINS THROUGHOUT THE GROWING SEASON LAST SUMMER HAMPERED DEVELOPMENT OF STARCH INSIDE CORN KERNELS AS A RESULT THE TEST WEIGHT FOR MUCH OF THE SUMMER'S CORN CROP WAS UNUSUALLY LOW 46 POUNDS TO 52 POUNDS A BUSHEL FOR SOYBEANS THE USDA ESTIMATED THE CROP AT 18 BILLION BUSHELS DOWN ABOUT 25 MILLION BUSHELS FROM THE NOVEMBER ESTIMATE OF 183 BILLION BUSHELS THE FLOODING ALSO HAMPERED DEVELOPMENT OF SOYBEAN PLANTS IN THE WESTERN CORN BELT AND UPPER MIDWEST RESULTING IN SMALLER SOYBEAN SIZE ON PLANTS FOR WHEAT THE DEPARTMENT PEGGED THE CROP AT 24 BILLION BUSHELS DOWN ABOUT 20 MILLION BUSHELS FROM THE NOVEMBER ESTIMATE OF 242 BILLION BUSHELS ANOTHER SIGNIFICANT PART OF THE USDA REPORT WAS THE DEPARTMENT'S ESTIMATE OF FEED USAGE OF US GRAIN DURING THE SEPTEMBERTHROUGHNOVEMBER PERIOD IN 1993 BECAUSE OF THE SCARCITY OF HIGHQUALITY US GRAIN ANALYSTS SAY FARMERS ULTIMATELY MUST DIMINISH THEIR USE OF GRAIN AS FEED FOR LIVESTOCK TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION AND PRICES MUST RISE TO LEVELS HIGH ENOUGH THAT FARMERS CAN'T AFFORD TO USE GRAIN AS FEED THE USDA ESTIMATED RESIDUAL USE OF CORN AS FEED AT 172 BILLION BUSHELS DURING THE SEPTEMBERTHROUGHNOVEMBER PERIOD DOWN 102 MILLION BUSHELS FROM 1992'S RECORD USAGE OF 183 BILLION BUSHELS YET ALTHOUGH FEED USAGE IS DOWN A BIT IT HASN'T FALLEN FAR ENOUGH TO ENSURE ABUNDANCE OF GRAIN FOR HUMAN USE ANALYSTS SAID THE REPORT SHOWS THAT PRICE STILL HAS NOT DONE ITS JOB OF CURTAILING DOMESTIC FEED USE SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO WE MUST REACH HIGHER PRICES TO START THE RATIONING PROCESS THE USDA PEGGED CORN ENDING STOCKS OR THE AMOUNT OF CORN IT EXPECTS TO BE ON HAND THIS SUMMER AT 802 MILLION BUSHELS THE LOWEST LEVEL SINCE THE MID1970S IT FORECAST SOYBEAN ENDING STOCKS AT 150 MILLION BUSHELS ALSO THE LOWEST SINCE THE MID70S IN OTHER COMMODITY MARKETS YESTERDAY ENERGY DESPITE A BULLISH INDUSTRY REPORT ON US PETROLEUM INVENTORIES LATE TUESDAY FEBRUARY CRUDEOIL FUTURES PRICES FELL 52 CENTS A BARREL TO 1433 IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE MUCH OF THE MARKET OPTIMISM TO BE FOUND IN THE AMERICAN PETROLEUM INSTITUTE STATISTICS ALREADY HAD BEEN FACTORED INTO PRICES SOME TRADERS SAID THE REST WAS OVERSHADOWED BY A REPORT FROM THE INTERNATIONAL ENERGY AGENCY IN PARIS SAYING THAT WORLD OIL DEMAND CONTINUES TO BE WEAK AND WILL LIKELY REMAIN SO THROUGH THE FIRST QUARTER THE IEA CUT ITS FORECAST FOR WORLD DEMAND FOR CRUDE OIL BY 300000 BARRELS A DAY TO 681 MILLION BARRELS FOR THE FIRST QUARTER AT THE SAME TIME SOME MARKET PLAYERS CONTINUE TO BE NERVOUS ABOUT THE PRECARIOUS FINANCIAL SITUATION SURROUNDING METALLGESELLSCHAFT AG THE GERMAN COMPANY WHOSE MG CORP IS A BIG FUTURESMARKET PARTICIPANT MEANWHILE NATURALGAS FUTURES PRICES CONTINUED TO ADVANCE BUOYED BY WEATHERRELATED BUYING AS YET ANOTHER WAVE OF WINTER STORMS HIT THE EASTERN PART OF THE US ORANGE JUICE FUTURES PRICES PLUMMETED AFTER WEATHER FORECASTS PREDICTED WARMERTHANEXPECTED TEMPERATURES THIS WEEKEND IN FLORIDA AT NEW YORK'S COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS DOWN 410 A POUND TO 11075 A POUND ON TUESDAY FORECASTERS HAD PREDICTED A COLD WAVE IN FLORIDA WITH TEMPERATURES FALLING AS LOW AS 29 DEGREES BUT MOST FORECASTS WERE REVISED TO SHOW A LOW OF 33 DEGREES TRADERS REACTED TO DIMINISHED FROST FEARS BY BIDDING DOWN ORANGEJUICE FUTURES PRICES A LOW OF 29 DEGREES WOULDN'T HAVE BEEN LOW ENOUGH TO CAUSE DAMAGE TO THE FLORIDA CROP ANYWAY SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH IT'S JUST THAT PSYCHOLOGICALLY WE'RE NOW THAT MUCH FARTHER AWAY FROM A FROST LATE YESTERDAY THE AGRICULTURE DEPARTMENT RAISED ITS ESTIMATE OF THE FLORIDA ORANGE CROP TO 176 MILLION BOXES FROM 172 MILLION BUT THAT PROSPECTIVE INCREASE IN JUICE SUPPLIES WAS MORE THAN OFFSET BY A DECREASE IN BRAZIL'S OUTLOOK FOR ITS 199495 ORANGE CROP BRAZIL ESTIMATED THAT BECAUSE OF BLOSSOM BLIGHT AND HOT WEATHER ITS CROP COULD BE REDUCED TO 240 MILLION BOXES FROM 282 MILLION IF THE BRAZILIAN CROP IS IN FACT THAT SMALL I THINK THIS MARKET IS GOING TO TURN AROUND AND REMAIN IN AN UPTREND THROUGHOUT SPRING MS GANES SAID 9401130088 940113 ABREAST OF THE MARKET STOCK PRICES FINISH MIXED AS GAINS BY BONDS EASE SELLING PRESSURE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES FINISHED MIXED AS A SURGING BOND MARKET EASED THE SELLING PRESSURE FROM PROFITTAKERS ALTHOUGH MANY ANALYSTS SAY THE STOCK MARKET IS DUE FOR A GIVEBACK AFTER ITS SHARP GAINS LAST WEEK AND MONDAY STRONG ACTION IN BONDS PUT THAT SELLING ON HOLD THE DOW JONES INDUSTRIAL AVERAGE HAD SET FOUR STRAIGHT RECORDS BEFORE SLIDING TUESDAY THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A SLIM LOSS OF 168 TO 384863 BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES INCHED HIGHER WHILE GAINERS ON THE EXCHANGE LED LOSERS 1146 TO 956 TRADING WAS ACTIVE WITH VOLUME ON THE BIG BOARD ABOVE THE HEAVY 300 MILLION SHARE MARK FOR A SEVENTH STRAIGHT SESSION YESTERDAY 309893290 SHARES CHANGED HANDS JUST ABOVE TUESDAY'S 304614870 THE ACTION WAS STRONGER IN THE NASDAQ STOCK MARKET AIDED IN PART BY TECHNOLOGY STOCKS ESPECIALLY SEMICONDUCTOR ISSUES THE NASDAQ COMPOSITE INDEX TOPPED ITS RECORD CLOSE DURING THE DAY BUT FINISHED BELOW THAT MARK UP 135 TO 78687 ITS RECORD OF 78742 HAS STOOD SINCE OCT 15 THE STANDARD & POOR'S 500STOCK INDEX INCHED UP 004 TO 47417 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 011 TO 26237 AND THE DOW JONES EQUITY MARKET INDEX INCREASED 019 TO 44891 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 050 TO 47987 IT HAS HAD ONE LOSING SESSION SINCE DEC 21 DESPITE THE RELATIVE STABILITY IN PRICES EDWARD NICOSKI MARKET ANALYST AT PIPER JAFFRAY SAID HE BELIEVES MORE PROFITTAKING IS LIKELY OVER THE NEXT SEVERAL SESSIONS BLUE CHIPS HAVE HAD A PRETTY GOOD RUN WITH JUST A MODEST AMOUNT OF PULLBACK HE SAID THE DOW JONES INDUSTRIALS EASED JUST 1520 TUESDAY AND ARE UP NEARLY 95 POINTS IN THE YEARTODATE PHIL RETTEW A MARKET SPECIALIST AT MERRILL LYNCH & CO HOWEVER DOESN'T THINK A MAJOR RETREAT IS LIKELY OVER THE NEAR TERM IT WOULD BE UNUSUAL FOR A MAJOR SLIDE TO DEVELOP IN THE IMMEDIATE AFTERMATH OF A STRONG RALLY HE SAID SEMICONDUCTOR STOCKS FOUGHT THE DOWNWARD TREND AIDED BY AN UPBEAT REPORT ON INDUSTRYWIDE ORDERS A TRADE GROUP SAID ITS SOCALLED BOOKTOBILL RATIO CLIMBED TO 104 LAST MONTH UP FROM 099 IN NOVEMBER AND ABOVE THE 101 AVERAGE FORECAST OF ANALYSTS SURVEYED BY DOW JONES NEWS SERVICE ON THE NASDAQ STOCK MARKET INTEL ROSE 1 5/8 TO 68 3/8 AND APPLIED MATERIALS GAINED 1 1/2 TO 41 1/2 ON THE BIG BOARD MOTOROLA ADVANCED 2 1/2 TO 94 3/4 TEXAS INSTRUMENTS RALLIED 3 1/4 TO 70 1/4 AND MICRON TECHNOLOGY ADDED 1 1/8 TO 54 1/8 AMERICAN DEPOSITARY RECEIPTS OF ALCATELALSTHOM SLUMPED 2 7/8 OR 99 TO 26 1/4 AFTER AN OFFICER OF THE FRENCH TECHNOLOGY CONCERN ESTIMATED 1993 EARNINGS WERE FLAT AND FORECAST AN EARNINGS DECLINE THIS YEAR LAST YEAR'S PROFIT WAS ABOUT SEVEN BILLION FRANCS THE PREDICTIONS WERE MADE IN AN INTERVIEW IN THE FRENCH DAILY LES ECHOS NEWBRIDGE NETWORKS CLIMBED 1 3/4 TO 65 3/4 ON NASDAQ AFTER IT AND MCI COMMUNICATIONS AGREED TO JOINTLY DEVELOP NETWORKING PRODUCTS AND SERVICES FOR DOMESTIC AND INTERNATIONAL CORPORATIONS MCI SLIPPED 1/8 TO 25 7/8 ALSO ON NASDAQ BARNETT BANKS LOST 1 3/8 TO 40 1/4 AFTER GOLDMAN SACHS & CO CUT ITS OPINION ON THE STOCK TO MARKET PERFORMER FROM BUY THE STOCK DROPPED 1 1/8 TUESDAY FOLLOWING A SLIGHTLY LOWERTHANEXPECTED EARNINGS REPORT FROM THE JACKSONVILLE FLA CONCERN KERRMCGEE DROPPED 1 5/8 TO 45 1/4 DEAN WITTER REYNOLDS ANALYST EUGENE NOWAK SLASHED HIS ESTIMATE OF THE COMPANY'S FOURTHQUARTER OPERATING PROFIT TO 20 CENTS A SHARE FROM A PREVIOUS FORECAST OF 30 CENTS HE SAID THE OKLAHOMA CITY OIL AND GAS CONCERN'S EXPLORATION COSTS HAVE BEEN HIGHER THAN HE HAD EXPECTED SENSORMATIC ELECTRONICS JUMPED 2 1/8 TO 35 1/8 THE DEERFIELD BEACH FLA COMPANY SAID HOME DEPOT WILL INSTALL SENSORMATIC ULTRAMAX ANTISHOPLIFTING SYSTEMS IN ALL OF ITS STORES SHARES OF ATLANTABASED HOME DEPOT ADDED 3/4 TO 39 3/8 KOHL'S DROPPED 2 5/8 TO 44 3/4 AFTER THE MENOMONEE FALLS WIS DEPARTMENT STORE COMPANY DISCLOSED PLANS FOR A PUBLIC OFFERING OF 4250000 COMMON SHARES THE STOCK WILL BE SOLD BY CERTAIN EXISTING HOLDERS COPLEY PHARMACEUTICAL CLIMBED 2 1/8 TO 30 5/8 ON NASDAQ AFTER LEHMAN BROTHERS INITIATED COVERAGE OF THE STOCK THE CANTON MASS CONCERN'S STOCK WAS RATED A BUY DETROIT DIESEL LOST 1 3/8 TO 32 KEMPER SECURITIES BEGAN COVERAGE OF THE MAKER OF HEAVY DUTY ENGINES AND PARTS WITH A REDUCE OPINION THE SECURITIES FIRM SAID FUNDAMENTALS IN DETROIT DIESEL'S INDUSTRY AREN'T LIKELY TO ACCELERATE FROM THEIR ALREADY ROBUST LEVELS LUXOTTICA GROUP'S AMERICAN DEPOSITARY RECEIPTS ADDED 7/8 TO 28 3/4 GOLDMAN SACHS ADDED THE ITALIAN MAKER OF EYEGLASS FRAMES TO ITS RECOMMENDED LIST SOFAMOR/DANEK JUMPED 1 5/8 TO 32 3/4 ER PICKARD CHIEF EXECUTIVE OFFICER OF THE MEMPHIS TENN MAKER OF SPINAL IMPLANT DEVICES SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF FOURTHQUARTER EARNINGS THE COMPANY EXPECTS TO HAVE ITS DISK SPACER IMPLANT IN CLINICAL TRIALS IN EUROPE THIS YEAR WATTS INDUSTRIES ENDED UNCHANGED AT 49 1/2 ON NASDAQ AFTER TRADING AS HIGH AS 50 3/4 KENNETH J MCAVOY CHIEF FINANCIAL OFFICER ESTIMATED THAT THE NORTH ANDOVER MASS COMPANY'S EARNINGS ROSE 12 TO 15 IN THE SECOND QUARTER FROM A YEARAGO EXCLUDING ONETIME CHARGES 9401130087 940113 MARKETING CHANGES BOOST EURO DISNEY AS DEBTRESTRUCTURING TALKS APPROACH BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE PROSPECTS FOR EURO DISNEY SCA WALT DISNEY CO'S BELEAGUERED THEME PARK OUTSIDE THE FRENCH CAPITAL ARE STARTING TO LOOK A LOT BRIGHTER JUST AS ITS FINANCIAL PROBLEMS HAVE HIT A LOW POINT DISNEY OFFICIALS AND THE FRENCHLED CREDITOR BANKS ARE DUE LATER THIS MONTH TO START DISCUSSING A CRUCIAL FINANCIAL RESTRUCTURING OF THE RESORT WHICH HAS DEBTS OF ABOUT 24 BILLION FRENCH FRANCS 4 BILLION AND EQUITY OF LESS THAN 400 MILLION FRANCS WITHOUT SUBSTANTIAL FINANCIAL RELIEF WHICH ANALYSTS SAY WILL HAVE TO TOTAL AT LEAST 10 BILLION FRANCS IN DEBT WRITEOFFS AND FRESH FUNDING EURO DISNEY MAY HAVE TO CLOSE BUT IN A PARADOX THAT GIVES HOPE FOR ITS FUTURE THE PARK SEEMS TO BE SOLVING ITS PROBLEMS ON THE GROUND ANALYSTS AND TOUR OPERATORS IN EUROPE ARE APPLAUDING A REVAMPED MARKETING STRATEGY RECENTLY PUT IN PLACE BY EURO DISNEY'S NEW MANAGEMENT AND ATTENDANCE WHICH HAS LIVED UP TO EXPECTATIONS SINCE ITS APRIL 1992 OPENING IS SEEN STRENGTHENING FURTHER THE PARK IS MAKING MONEY IT'S THE UNDERLYING FINANCIAL STRUCTURE THAT IS UNTENABLE SAYS REBECCA WINNINGTONINGRAM AN ANALYST AT MORGAN STANLEY INTERNATIONAL IN LONDON WITH ITS NEW MARKETING STRATEGY EURO DISNEY HAS SOUGHT TO COUNTER CRITICISM FROM TOUR OPERATORS BY FOCUSING MORE CLEARLY ON SHORTTERM VISITORS STAYING FOR BETWEEN ONE AND THREE DAYS AND BY CUTTING PRICES SHARPLY MOREOVER THE OUTLOOK FOR 1994 IS BRIGHTER AS EUROPE PULLS ITS WAY OUT OF RECESSION TOUR OPERATORS EXPECT TWO BIG EVENTS IN THE COMING MONTHS WILL HELP TO BOOST ATTENDANCE AT THE PARK THE OPENING OF THE CHANNEL TUNNEL BETWEEN ENGLAND AND FRANCE AND THE COMPLETION OF A NEW HIGHSPEED TRAIN LINE THAT WILL CROSS FRANCE AND STOP AT A SPECIALLY CONSTRUCTED STATION BY THE RESORT IT NOW DOES WE FEEL REPRESENT GOOD VALUE FOR MONEY SAYS PETER SHANKS COMMERCIAL DIRECTOR OF THOMAS COOK A LARGE BRITISH TOUR OPERATOR MR SHANKS SAYS EURO DISNEY OFFICIALS INITIALLY DIDN'T GET THE PRICING STRUCTURE RIGHT AND COMPOUNDED THEIR WOES BY BEING VERY ARROGANT THOMAS COOK SOLD ABOUT 15000 EURO DISNEY HOLIDAYS IN 1993 BUT MR SHANKS EXPECTS TO SELL 25000 HOLIDAYS TO THE RESORT THIS YEAR AND AS MANY AS 50000 IN 1995 INDEED THE COMPANY SAYS IT ENJOYED A HECTIC CHRISTMAS HOLIDAY SEASON WITH ALL ITS HOTELS COMPLETELY FILLED ON NEW YEAR'S EVE COMPARED WITH AN AVERAGE OCCUPANCY AT THE RESORT'S SIX HOTELS LAST YEAR OF JUST 55 ONE SIGN THAT EURO DISNEY COULD BE IN FOR A RECOVERY IS THE EMERGENCE OVER THE PAST FEW DAYS OF A SECONDARY MARKET FOR ITS DEBT MARKET PARTICIPANTS SAY AT LEAST ONE LARGE TRADE HAS BEEN TRANSACTED THE SALE OF 130 MILLION FRANCS 22 MILLION OF EURO DISNEY DEBT AT 60 OF FACE VALUE BY BRITAIN'S MIDLAND BANK PLC OTHER BANKS BOTH FRENCH AND NONFRENCH ARE ALSO ACTIVELY LOOKING FOR POTENTIAL BUYERS A MIDLAND BANK SPOKESMAN DECLINED TO CONFIRM WHAT HE DESCRIBED AS MARKET RUMOR AND SPECULATION BUT PEOPLE WHO SPECIALIZE IN TRADING THE DEBT OF DISTRESSED COMPANIES CONFIRMED THE TRANSACTION AND THE EMERGENCE OF A MARKET IN EURO DISNEY OVER THE PAST MONTH DEBT OF THE THEME PARK ITSELF IS BEING OFFERED AT BETWEEN 55 CENTS AND 60 CENTS ON THE DOLLAR THEY SAY WHILE THE SEPARATE DEBT OF THE TROUBLED HOTELS AT THE PARK IS BEING OFFERED AT BETWEEN 25 AND 40 OF FACE VALUE JACK HERSCH RESEARCH DIRECTOR OF MJ WHITMAN A NEW YORK TRADER OF DISTRESSED COMPANIES WOULDN'T DENY THAT EURO DISNEY DEBT HAS TRADED OR THAT HIS COMPANY WAS INVOLVED GARY KLESCH CHAIRMAN OF KLESCH & CO A LONDONBASED COMPANY ALSO ACTIVE IN SECONDARYDEBT MARKETS SAID THE MAIN BUYING INTEREST IS BEING SHOWN BY US VULTURE FUNDS WHICH FEED OFF TROUBLED COMPANIES IT IS THE PROSPECT OF A SOUND COMPANY EMERGING FROM THE DEBT RESTRUCTURING TALKS THAT APPARENTLY ACCOUNTS FOR WHY THE VULTURE FUNDS ARE INTERESTED IN ACQUIRING EURO DISNEY DEBT THEY ARE SPECULATING THAT THE DEBT WILL EVENTUALLY BE WORTH SUBSTANTIALLY MORE THAN THEY ARE PAYING FOR IT ONE SOURCE SAYS THE PARK'S DEBT NOW ON SALE AT 60 OF ITS FACE VALUE COULD BE WORTH 80 CENTS TO THE DOLLAR IN THE FUTURE THERE IS STILL A LONG WAY TO GO BEFORE EURO DISNEY EMERGES WITH A MORE TENABLE FINANCIAL STRUCTURE HOWEVER CREDITOR BANKS LED BY BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ COMMISSIONED A REPORT FROM ACCOUNTANTS KPMG LATE LAST YEAR ON BOTH EURO DISNEY'S FINANCIAL SITUATION AND ITS OPERATING PROSPECTS THE REPORT IS EXPECTED TO BE FINISHED WITHIN THE NEXT FEW DAYS AND IT WILL BE FOLLOWED BY THE FORMAL OPENING OF TALKS BETWEEN THE BANKS AND OFFICIALS FROM EURO DISNEY AND WALT DISNEY WHICH OWNS 49 OF THE EUROPEAN COMPANY EURO DISNEY IN NOVEMBER REPORTED A STUNNING 53 BILLION FRANC LOSS FOR ITS FIRST FISCAL YEAR ENDED SEPT 30 ALTHOUGH THAT HEADLINEGRABBING FIGURE INCLUDED A ONETIME CHARGE OF 36 BILLION FRANCS USED TO WRITE OFF THE PARK'S STARTUP COSTS BUT IN ITS FINANCIAL REPORT IT ACKNOWLEDGES THAT IT WILL REQUIRE SIGNIFICANT FUNDING IN 1994 TO WARD OFF A LIQUIDITY PROBLEM DISNEY CHAIRMAN MICHAEL D EISNER WHO HAS DESCRIBED EURO DISNEY AS OUR FIRST REAL FINANCIAL DISAPPOINTMENT IS PRESSING FOR THE RESTRUCTURING TO BE IN PLACE BY THE END OF MARCH BECAUSE OF THE COMPLEX FINANCING STRUCTURE OF THE PARK DISNEY'S FINANCIAL LOSSES IN THE EVENT OF BANKRUPTCY A WORST CASE SCENARIO THAT MR EISNER HAS RAISED BUT ONE THAT MOST ANALYSTS DISMISS AS RHETORIC WOULD BE RELATIVELY LIGHT COMPARED WITH THE SHORTFALL SUFFERED BY THE BANKS AND THE FRENCH STATE WHICH GUARANTEED SOME LOANS THE BANKS SENSING THEY ARE AT A DISADVANTAGE IN THE COMING TALKS NONETHELESS SAY DISNEY ITSELF WOULD SUFFER A TREMENDOUS BLOW TO ITS STERLING REPUTATION IF THE EUROPEAN RESORT FAILED IT'S HARD TO SEE THAT THEY COULD ALLOW IT TO GO INTO BANKRUPTCY SAYS ONE FRENCH BANKER FAMILIAR WITH THE SITUATION WHO SAYS ALL SIDES WILL HAVE TO MAKE BIG SACRIFICES MS WINNINGTONINGRAM OF MORGAN STANLEY CALCULATES THAT THE PARK COULD BREAK EVEN IN 199697 BUT ONLY IF FIVE BILLION FRANCS OF DEBT IS WRITTEN OFF AND THERE IS AN INJECTION OF FRESH CASH TOTALING ANOTHER FIVE BILLION FRANCS NONETHELESS I THINK IT'S VERY UNLIKELY THAT WALT DISNEY WOULD WALK AWAY FROM THIS SHE SAYS SOME WILL INEVITABLY LOSE HEAVILY ONE WAY OR ANOTHER EXISTING SHAREHOLDERS WILL BE DILUTED VERY SEVERELY CONTENDS NIGEL REED AN ANALYST AT PARIBAS CAPITAL MARKETS IN LONDON AND A LONGSTANDING SKEPTIC ABOUT THE PARK HE ADDS TO STAND ANY CHANCE AT ALL OF A RIGHTS ISSUE YOU MUST MAKE THE COMPANY LOOK AS THOUGH IT WILL BREAK EVEN IN 1995 IN A FRENCH STOCK MARKET THAT WAS DOWN OVERALL YESTERDAY EURO DISNEY SHARES WERE IN DEMAND GAINING 25 OR 85 CENTIMES TO 3470 FRANCS 586 9401130086 940113 LEISURE & ARTS BOOKSHELF KEEPING IT CLEAN AT DIGICOM BY DAVE SHIFLETT IN AN APPEARANCE BEFORE THE NATIONAL PRESS CLUB LAST YEAR MICHAEL CRICHTON ANNOUNCED THAT THE AMERICAN NEWS MEDIA WERE PROBABLY DOOMED BY THEIR INCOMPETENCE WHICH CAUSED MANY A HACK TO LOOK FORWARD TO THE PUBLICATION OF THE MEGAAUTHOR'S NEXT BOOK MR CRICHTON MAY BE A GIANT IN MODERN LITERARY CIRCLES 6 FEET 9 INCHES TALL WITH WRITING SKILLS TO RIVAL BARBARA CARTLAND'S BUT HE COULD STILL BE FED THROUGH THE OLD TREE CHIPPER EASILY ENOUGH THE EXPECTED BOOK HAS ARRIVED DISCLOSURE KNOPF 397 PAGES 24 BUT ALAS A MERCIFUL MOOD PREVAILS THIS HAS LESS TO DO WITH THE BOOK'S LITERARY QUALITIES IT WILL BE THE VERY RARE PERSON WHO REREADS DISCLOSURE THAN WITH MR CRICHTON'S GUTS WHICH HEAVE AND GROWL THROUGHOUT THIS FICTIONAL TREATMENT OF AN AUTHENTIC SEXUAL HARASSMENT CASE WHOSE PRINCIPLES WERE INTERVIEWED BY THE AUTHOR HAVING EARLIER UNLEASHED DINOSAURS IN JURASSIC PARK MR CRICHTON NOW MAY HAVE UNLEASHED A SKUNK AT THE PC GARDEN PARTY IN AN AGE WHEN CATHARINE MACKINNON WARNS THAT ALL BUT 8 OR SO OF AMERICAN FEMALES SUFFER SOME FORM OF HARASSMENT THE UNTOUCHED ELITE PRESUMABLY DIE EARLY OR SPEND THEIR ADULTHOODS IN THE BURN UNIT MR CRICHTON OFFERS A DIFFERENT SCENARIO MEREDITH JOHNSON A WOMAN EXECUTIVE BROUGHT IN TO DIVERSIFY UPPER MANAGEMENT AT DIGICOM MAKES THE LUNGE FOR TOM SANDERS AN UNDERLING MALE AND FORMER LOVER WHOSE PROMOTION SHE GOT AFTER NEARLY SUCCUMBING TO THE SHEBEAST'S COMEON PERFORMED WITH THE SAME SUBTLETY SEEN AT MATING TIME IN THE MONKEY CAGE TOM SANDERS ZIPS UP WHICH UNLEASHES A PREEMPTIVE CHARGE OF SEXUAL HARASSMENT BY THE SCORNED EXEC AND MUCH PREACHING ON THE PART OF THE AUTHOR IN FACT DISCLOSURE IS NOT SO MUCH A NOVEL AS A LONG SERMON WITH SEX SCENES TREACHERY AND BRIEF PERIODS OF SUSPENSE MOST OF WHICH TAKE PLACE IN DRIZZLY SEATTLE READERS MAY NOTE THE STUNNING CONTRAST BETWEEN THE SOPHISTICATED GIZMOS MADE AND MARKETED BY DIGICOM AND THE SOMEWHAT CRUDE CAST OF CHARACTERS WITH A FEW EXCEPTIONS WHO WORK THERE WHICH MAY NOT HAVE BEEN ONE OF THE AUTHOR'S INTENDED SUBTEXTS BUT THERE IS NO MISTAKING THE PURPOSEFULLY EVANGELISTIC NATURE OF DISCLOSURE EARLY ON A MINOR CHARACTER NAMED EDDIE LARSON MAKES HIS WAY INTO THE PULPIT TO DISCUSS A NAGGING PROBLEM THE WOMEN ON THE PRODUCTION LINE ARE DEMANDING THAT WE CLEAN OUT THE PINUPS IN THE MEN'S LOCKER ROOM THEY SAY IT'S OFFENSIVE TO THEM YOU ASK ME I THINK IT'S BULL LARSON SAID BECAUSE WOMEN NEVER GO INTO THE MEN'S LOCKER ROOM TOM SANDERS A CONSCIENTIOUS MANAGER REPLIES WE DON'T NEED ANY COMPLAINTS ABOUT BEING UNRESPONSIVE ON SEX ISSUES GET THE PINUPS OUT EVEN IF THE WOMEN HAVE PINUPS IN THEIR LOCKER ROOM JUST DO IT EDDIE THIS BRIEF PASSAGE SHOWS THAT MR CRICHTON WILL REQUIRE HIS CHARACTERS TO TAKE REASONABLE STEPS TO ACCOMMODATE CURRENT STANDARDS OF HYPERSENSITIVITY AND UNFAIRNESS AND SOME READERS MAY INITIALLY WORRY THAT THE AUTHOR ISN'T UP TO FIGHTING THE GOOD FIGHT THESE WORRIES DON'T LAST LONG AFTER THE SCORNED BOSS FILES HER VENGEFUL CHARGE MR CRICHTON SUPPLIES TOM WITH THE PERFECT LAWYER LOUISE FERNANDEZ WHO COVERS ALL THE BASES PLUS HOME PLATE ALONG WITH HER IMPECCABLE GENDER AND ETHNIC CREDENTIALS LOUISE DETESTS HARASSERS MALE AND FEMALE LOUISE IS A GIRL AFTER OUR OWN HEART AND OF COURSE MEREDITH'S SCALP AS THE TALL BLONDE AND HER CORPORATE PROTECTORS SOON DISCOVER ALONG THE WAY WE HEAR PLENTY OF VIRTUOUS SERMONETTES BUT PERHAPS THE MOST MAGISTERIAL MESSAGE IS DELIVERED BY MR CRICHTON HIMSELF WHO IS NEVER FAR IN THE BACKGROUND BUT WHO LEAPS INTO THE FRAY TO DISCUSS THE STEPS MEN NOW TAKE TO DODGE THE FALSE ACCUSATION BULLET DON'T SMILE AT A CHILD ON THE STREET UNLESS YOU'RE WITH YOUR WIFE DON'T EVER TOUCH A STRANGE CHILD DON'T EVER BE ALONE WITH SOMEONE ELSE'S CHILD EVEN FOR A MOMENT IF A CHILD INVITES YOU INTO HIS OR HER ROOM DON'T GO UNLESS ANOTHER ADULT PREFERABLY A WOMAN IS ALSO PRESENT AT A PARTY DON'T LET A LITTLE GIRL SIT ON YOUR LAP IF SHE TRIES GENTLY PRESS HER ASIDE IF YOU EVER HAVE OCCASION TO SEE A NAKED GIRL OR BOY LOOK QUICKLY AWAY BETTER YET LEAVE AND IT WAS PRUDENT TO BE CAREFUL AROUND YOUR OWN CHILDREN TOO BECAUSE IF YOUR MARRIAGE WENT SOUR YOUR WIFE MIGHT ACCUSE YOU IF THESE WORDS WERE DELIVERED BEFORE A STADIUM AUDIENCE TENS OF THOUSANDS WOULD COME FORWARD TO TOUCH THE HEM OF MR CRICHTON'S ROBE THE AUTHOR HAS REPORTS SAY BEEN HEAVILY COMPENSATED FOR DISCLOSURE 35 MILLION OR SO WHICH DID NOT COMPEL HIM TO END ON A HAPPY NOTE THOUGH HE DOES PUT THE SHEBEAST OUT TO PASTURE LOUISE FERNANDEZ SUMS UP THE LARGER PREDICAMENT A HARASSMENT CLAIM IS A WEAPON BOB AND THERE ARE NO GOOD DEFENSES AGAINST IT ANYBODY CAN USE THE WEAPON AND LOTS OF PEOPLE HAVE IT'S GOING TO CONTINUE FOR A WHILE I THINK YET MR CRICHTON HAS DONE HIS PART TO FIGHT THE MADNESS PROVING ONCE AGAIN THAT EVERY SO OFTEN A TALL WHITE GUY DOES SOMETHING RIGHT AT LEAST IF YOU PAY HIM ENOUGH MR SHIFLETT IS DEPUTY EDITORIAL EDITOR OF THE ROCKY MOUNTAIN NEWS 9401130085 940113 WHO'S NEWS SMITH BARNEY MANAGEMENT IS RESHUFFLED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMITH BARNEY SHEARSON INC IN A RESHUFFLING OF ITS BIG BROKERAGE DIVISION USHERED IN A SERIES OF SENIORLEVEL CHANGES THE TRAVELERS INC UNIT WILL NAME JESSICA M BIBLIOWICZ DAUGHTER OF TRAVELERS CHAIRMAN SANFORD I WEILL AN EXECUTIVE VICE PRESIDENT HEADING SALES AND MARKETING FOR MUTUAL FUNDS ANNUITIES AND INSURANCE SMITH BARNEY EXECUTIVES SAY AMONG OTHER SHIFTS JAY MANDELBAUM A TRAVELERS EXECUTIVE WILL BECOME CHIEF ADMINISTRATIVE OFFICER OF THE BROKERAGE GROUP HIS PREDECESSOR RICHARD SCHIAVO WILL BECOME CHIEF FINANCIAL OFFICER UNDER MR MANDELBAUM AND THE FIRM'S LEGAL COMPLIANCE AND REALESTATE GROUPS WILL NO LONGER REPORT DIRECTLY TO JOSEPH PLUMERI SMITH BARNEY SHEARSON'S PRESIDENT THE SHAKEUP IS THE MOST EXTENSIVE SINCE THE AUGUST MERGER BETWEEN SMITH BARNEY HARRIS UPHAM & CO AND THE BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS INC AS PREVIOUSLY REPORTED SMITH BARNEY SHEARSON IS IN THE PROCESS OF CUTTING AS MANY AS 1500 EMPLOYEES AND STREAMLING ITS COMBINED OPERATIONS THE CHANGES ARE A NATURAL OUTGROWTH OF A MERGER JAMIE DIMON TRAVELERS PRESIDENT SAID IN AN INTERVIEW CONSOLIDATING THE REAL ESTATE LEGAL AND COMPLIANCE FUNCTIONS ARE PART OF A NORMAL PROCESS SOME WALL STREET EXECUTIVES SUGGESTED THAT THE MOVES PARTIALLY UNDERCUT MR PLUMERI AN ASSERTION SHRUGGED OFF BY SENIOR SMITH BARNEY EXECUTIVES I'M NOT TEED OFF I'M NOT UPSET ALL OF THESE DECISIONS WERE MY DECISIONS MR PLUMERI SAID IN AN INTERVIEW THE APPOINTMENT OF MS BIBLIOWICZ 34 YEARS OLD IS EXPECTED TO BE ANNOUNCED AS EARLY AS TODAY SMITH BARNEY EXECUTIVES SAY THESE EXECUTIVES SAY THE FIRM PREVIOUSLY HAS TRIED TO HIRE MS BIBLIOWICZ WHO FOR THE PAST 2 1/2 YEARS HEADED MUTUALFUND SALES AND MARKETING FOR PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA MS BIBLIOWICZ WILL ASSUME THE DUTIES OF ROBERT LEO WHO RECENTLY JOINED MASSACHUSETTS FINANCIAL SERVICES AS DIRECTOR OF BROKERDEALER SALES BUT SHE WILL ALSO BE THE HEAD OF MARKETING AND SALES OF INSURANCES AND ANNUITIES AND MR LEO'S SUCCESSOR WHO HASN'T YET BEEN NAMED WILL REPORT TO HER SMITH BARNEY EXECUTIVES SAID MS BIBLIOWICZ ISN'T THE FIRST CHILD OF MR WEILL TO ASSUME A SENIOR POST AT HIS FIRM HIS SON MARC IS SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER AT TRAVELERS BUT HER POSITION IS AMONG THE MOST SIGNIFICANT AT THE FIRM WHICH MANAGES MORE THAN 55 BILLION IN PROPRIETARY MUTUAL FUNDS AND HAS MORE THAN 14 BILLION IN INSURANCE PREMIUMS COUNTING SALES THAT'S A BILLION DOLLARS OF BUSINESS SAYS MR PLUMERI MS BIBLIOWICZ IS VERY GOOD WITH BROKERS MR PLUMERI SAYS ADDING DESPITE THE FACT OF WHO SHE IS THIS LADY IS TERRIFIC MR WEILL FOR HIS PART SAYS THE FIRM TRIED TO GET JESSICA HERE LOTS OF TIMES IN AN INTERVIEW HE ADDED I THINK SHE DIDN'T WANT TO DO IT UNTIL SHE HAD ACCOMPLISHED ENOUGH SOMEPLACE ELSE 9401130084 940113 LETTERS TO THE EDITOR MY POSITION DISTORTED ON JOBS TRAINING YOUR DEC 16 PAGEONE ARTICLE TICKET TO NOWHERE JOB PROGRAMS FLUNK AT TRAINING BUT KEEP WASHINGTON AT WORK QUOTED ME OUT OF CONTEXT IT DISTORTS THE STATEMENT I SUBMITTED AT THE REQUEST OF THE WALL STREET JOURNAL MY FULL STATEMENT WAS I HAVE TAKEN THE LEAD ON REFORMING THE USDA EMPLOYMENT AND TRAINING PROGRAM AND I BELIEVE WE HAVE BEEN SUCCESSFUL EMPLOYMENT AND TRAINING IS DESIGNED TO HELP PEOPLE GET OFF FOOD STAMPS AND INTO THE WORKPLACE AND I WILL FIGHT ANY PROPOSALS THAT MAKE THAT MORE DIFFICULT FOR THE PEOPLE WE'RE TRYING TO HELP I HAVE NOT SEEN DETAILS OF THE ADMINISTRATION'S PROPOSAL TO MOVE THE USDA PROGRAM TO HHS SO I CANNOT DETERMINE AT THIS TIME WHETHER OR NOT IT IS A GOOD IDEA IF THE ADMINISTRATION CAN DEFINITIVELY SHOW THAT THIS CHANGE WILL HELP PEOPLE AND IMPROVE THE EMPLOYMENT AND TRAINING PROGRAM THEN I WILL GIVE IT SERIOUS CONSIDERATION THE ITALICIZED PASSAGE IS ALL THAT YOU EXCERPTED AND IT CLEARLY MISREPRESENTS THE TENOR OF MY REMARK ON NOV 12 1991 I INTRODUCED THE FOOD STAMP EMPLOYMENT AND TRAINING REFORM ACT TO FIX MANY OF THE PROBLEMS HIGHLIGHTED IN YOUR ARTICLE I AGREED WITH THE ABT ASSOCIATES REPORT ON THE USDA EMPLOYMENT AND TRAINING PROGRAM REFERRED TO IN YOUR ARTICLE AND MANDATED THAT THE PROGRAM BE REVAMPED THAT LEGISLATION WAS PASSED AND SIGNED INTO LAW BY PRESIDENT BUSH 9401130083 940113 LEISURE & ARTS FILM FRENCH APACHES FIGHT CANADIANS SLED BY JULIE SALAMON THE GORGEOUSLY ATMOSPHERIC FRENCH MOVIE THE ACCOMPANIST CERTAINLY HAS THE STUFF OF OPERATIC MELODRAMA SET IN OCCUPIED PARIS DURING WORLD WAR II ITS HEROINE IS IRENE BRICE A CLASSICAL SOPRANO WHO HAS USED HER LOVELY VOICE AND CAREFUL INTERPRETATIONS OF MUSIC AS WELL AS HER PALE BEAUTY TO BUILD A SUCCESSFUL PERFORMING CAREER THE LIFE OF THIS HIGHSTRUNG AND CHARMING ARTIST APPEARS GLAMOROUSLY COMPLICATED AS SHE TRIES TO KEEP ITS ELEMENTS ALL AFLOAT HER RICH AND LOVING HUSBAND CHARLES HER HANDSOME MYSTERIOUS LOVER JACQUES AND HER WORK THIS PRIVATE DRAMA DERIVES EXTRA PASSION AND TENSION BECAUSE IT IS INTERTWINED WITH THE BIGGER DRAMA AND BIGGER MORAL QUESTIONS RAISED BY WAR BUT THE FOCUS IS KEPT ON IRENE AND CHARLES AND JACQUES AND EVENTUALLY WHETHER ANY OF THEM WILL USE THE PISTOL CHARLES KEEPS IN HIS DESK DRAWER IF ALL THIS SOUNDS LIKE THE HIGHFLOWN VISION OF A YOUNG GIRL IT'S MEANT TO IRENE ELENA SAFONOVA AND HER HUSBAND CHARLES RICHARD BOHRINGER AND JACQUES SAMUEL LABARTHE HER LOVER ARE CERTAINLY ROMANTIC FIGURES BUT THEY SEEM BREATHLESSLY SO WHEN SEEN FROM THE POINT OF VIEW OF THE CHARACTER PRESENTING THEM SHE IS SOPHIE VASSEUR ROMANE BOHRINGER THE YOUNG WOMAN IRENE HIRES TO BE HER ACCOMPANIST AND THE REALLIFE DAUGHTER OF THE MAN WHO PLAYS IRENE'S FILM HUSBAND BUT SOPHIE BECOMES MUCH MORE FOR HER THAN THAT SHE BECOMES IRENE'S MAID HER MUSICAL ADVISER HER CONFIDANTE AND IRENE FOR SOPHIE BECOMES A KIND OF FAIRY GODMOTHER THE FABULOUS CREATURE WHO HAS WHISKED HER AWAY FROM HER DRAB LIFE AND DROPPED HER INTO A GROWNUP VERSION OF OZ ONCE THE PLEASURE OF BEING IN IRENE'S SILKY SURROUNDINGS GROWS FAMILIAR HOWEVER SOPHIE GETS CRANKY AS SHE REALIZES THAT PROXIMITY TO THESE RICHLY PASSIONATE AND GLAMOROUS LIVES HASN'T GIVEN HER ONE OF HER OWN SHE MAY BE A TALENTED PIANIST BUT THE AUDIENCE'S HUZZAHS ARE FOR IRENE SHE MAY HAVE BETTER CLOTHES THAN SHE DID BEFORE AND THE CHANCE TO EAT OYSTERS BUT SHE HAS NO TIME FOR ROMANCE SHE'S TOO BUSY TENDING TO IRENE SOPHIE IS A FAMILIAR NOVELISTIC CHARACTER THE OBSERVERNARRATOR WHO IS WILLING TO BECOME A CIPHER IN ORDER TO TELL THE STORY OF THE MORE FLAMBOYANT CHARACTERS AROUND HER BUT SOPHIE ISN'T SIMPLY THE CONDUIT FOR IRENE'S STORY MS BOHRINGER'S WATCHFUL INTENSITY MAKES IT VERY CLEAR THAT SOPHIE MOST EMPHATICALLY DOESN'T WANT TO BE A ZERO SHE HERSELF DOESN'T KNOW THIS WHEN SHE ACCEPTS THE JOB IN A SCENE SHREWDLY PLAYED BY MS BOHRINGER AND MS SAFONOVA SHE IS SIMPLY FLATTERED THAT THE CHARMING IRENE THINKS SHE'S WORTHY OF THE POSITION YET EVEN IN THIS EARLY STAGE OF THEIR RELATIONSHIP SOPHIE SHOWS SIGNS OF UNUSUAL SELFCONFIDENCE WHEN IRENE QUESTIONS HER INTERPRETATION OF A PIECE OF MUSIC SHE FIRMLY AND COMPLETELY EXPLAINS HER REASONS FOR PLAYING IT THAT WAY IRENE RECOGNIZES THAT TOUGHNESS AND LIKES HER FOR IT YET SHE MAKES IT CLEAR TO SOPHIE THAT NOTHING CAN BE MORE IMPORTANT TO HER THAN IRENE AND NOTHING IS A FACT SOPHIE COMES TO RESENT EVEN MORE SO BECAUSE IRENE IS SO KIND TO HER ONE NIGHT WHEN IRENE COMES TO HER ROOM TO THANK HER FOR PLAYING SO WELL AT HER FIRST CONCERT SOPHIE STARES AT HER THINKING I LOVE YOU MORE AND MORE I HATE YOU MORE AND MORE CLAUDE MILLER HAS DIRECTED THE ACCOMPANIST WITH A LYRICAL REFINEMENT THAT AT TIMES SEEMS TO BE A PARODY OF THE QUINTESSENTIALLY FRENCH MOVIE IT'S ALL EXQUISITE THE BRICE APARTMENT IRENE'S CLOTHES THE TEARS THAT ALMOST EVERYONE EVENTUALLY SHEDS THE MOVIE'S MOOD IS REINFORCED AT ALMOST EVERY TURN BY THE MUSIC DEFTLY SCORED BY ALAIN JOMY LAURENCE MONTEYROL ACTUALLY RECORDED THE ARIAS THAT IRENE SINGS AS SHE LIPSYNCHS THEM MS SAFONOVA MANAGES TO MAKE MS MONTEYROL'S VOICE PART OF HER SOUL GERONIMO AN AMERICAN LEGEND HAS THE STATELY GRANDEUR OF THE OLD WESTERNS EVERYTHING ABOUT IT IS WRIT LARGE INCLUDING ITS CLICHES BUT THAT'S PART OF ITS BEAUTY DIRECTOR WALTER HILL AND SCREENWRITERS JOHN MILIUS AND LARRY GROSS HAVE MORE OR LESS IMAGINED WHAT THE LAST DAYS OF GERONIMO MIGHT HAVE BEEN LIKE BEFORE THE FAMOUS CHIRICAHUA APACHE WARRIOR FINALLY SURRENDERED TO THE US ARMY WES STUDI IS SADLY NOBLE AS GERONIMO AND JASON PATRIC ADMIRABLY MATCHES HIM IN SADNESS AND NOBILITY AS THE SOUTHERN GENTLEMANSOLDIER WHO NEGOTIATES HIS FINAL SURRENDER THE LANDSCAPE MAY SEEM FAMILIAR SOME OF THE FILM WAS SHOT IN THE RED CANYONS OF MOAB UTAH THE SET FOR MANY CLASSIC WESTERNS THE BATTLES MAY SEEM FAMILIAR TOO BUT THAT DOESN'T MAKE THEM ANY LESS EXCITING TO WATCH THAT GOES FOR ROBERT DUVALL AND GENE HACKMAN AS WELL I HAVE FOND MEMORIES OF A CERTAIN KIND OF WALT DISNEY MOVIE IN WHICH A BRAVE YOUNG PERSON SUCCEEDS IN SOME SUPERHUMAN EFFORT OFTEN WITH THE HELP OF AN ANIMAL USUALLY A DOG IRON WILL THE STORY OF A HISTORIC DOG SLED RACE IS EXACTLY THAT KIND OF MOVIE INDEED I THINK IT CONTAINS MUCH OF THE SAME DIALOGUE AS THE OTHERS IN THIS FILM BASED ON A TRUE STORY YOUNG WILL STONEMAN MAKES A HEROIC EFFORT TO WIN A 500MILE RUN FROM WINNIPEG MANITOBA TO ST PAUL MINN AND HE IS INSPIRED BY A WHITE HUSKY NAMED GUS THIS PERIOD PIECE SET JUST BEFORE THE ONSET OF WORLD WAR I IS A FINE FAMILY MOVIE EXCITING SCENERY FOR THE PARENTS A WHOLE NEW WORLD FOR THE KIDS VIDEO TIP FOR ADULTS WHO LIKE MOVIES ABOUT PEOPLE WINNING RACES THERE'S ALWAYS CHARIOTS OF FIRE THE LYRICAL 1981 FILM ABOUT THE TWO YOUNG RUNNERS WHO REPRESENTED BRITAIN IN THE 1924 OLYMPICS 9401130082 940113 LEISURE & ARTS TV HANDLESS CORPSES MADNESS AND WARTIME CODEBREAKERS BY DOROTHY RABINOWITZ ROY MARSDEN IS BACK AS THE PENSIVE INSPECTOR ADAM DALGLIESH IN A NEW TWOPART MYSTERY TITLED NATURAL CAUSES AND HAPPY WE ARE TO SEE HIM IN THIS ADVENTURE CONCERNING A CORPSE FROM WHICH THE HANDS HAVE BEEN HACKED OFF ADDITIONALLY THE LONELY DALGLIESH HAS BEEN GIVEN OR MORE PRECISELY BEEN ENCUMBERED WITH A LOVE INTEREST THOUGH ONE HAPPILY SHORTLIVED SOMETHING ABOUT DALGLIESH AS A GRATEFUL LOVEPUPPY SEEMS OUT OF KILTER IT ALSO BRINGS OUT THE WORST IN THE SCRIPTWRITERS THINGS GET SO LOW INDEED THAT WE ARE REDUCED TO HEARING LINES FROM THE BROODING GIRLFRIEND INFORMING US THAT DALGLIESH MAY BE THE SORT OF MAN WHO JUST CAN'T COMMIT FORTUNATELY DALGLIESH SPENDS MOST OF HIS TIME PURSUING MURDERERS IN THIS AS EVER WONDERFULLY GLOOMY MYSTERY THE STORY OF A YOUNG WOMAN'S DESCENT INTO PARANOID SCHIZOPHRENIA AND HER SUBSEQUENT TREATMENT AND RECOVERY THIS IS A GRIM FILM ALL RIGHT IT IS ALSO A DEFTLY MADE ONE IN WHICH DIANA ROSS DELIVERS A HARROWINGLY PERSUASIVE PERFORMANCE THIS HBO SPECIAL IS BASED ON THE EXPERIENCES OF FORMER NEW YORK MEDICAL EXAMINER MICHAEL BADEN AND SOME OF THE NOTORIOUS CASES THE DOCTOR HELPED SOLVE ITS DUMBEDDOWN TONE AND LURID MOOD MUSIC ASIDE THERE IS MUCH TO RELISH IF THAT IS THE WORD IN THIS NEATLY PACKAGED HOUR WHO CAN RESIST A STORY OF A HOMICIDE INVOLVING A HUMAN FOOT IN A SHARK'S STOMACH IT HELPS THAT DR BADEN DELIVERS DATA ABOUT STOMACHS AND THEIR CONTENTS WITH THE LOVING ABSORPTION CHARACTERISTIC OF THOSE WHO ARE EXPERTS IN THEIR FIELD WATCH THIS TO LEARN WHAT INGESTED POTATOES CAN TELL A MEDICAL EXAMINER AS OPPOSED SAY TO CARROTS BUT THE SUBJECTS OF THESE STORIES ARE FREQUENTLY LESS PALATABLE THAN THIS THERE ARE A FEW PICTURES HERE THAT ARE NOT FOR THE SQUEAMISH OR EVEN THE UNSQEAMISH SO BE WARNED THE SUBJECT IS DEINSTITUTIONALIZATION OF THE INSANE IN THIS CHAPTER OF FRONTLINE THE FILM SET IN NORTHAMPTON MASS AT A CENTER FOR LIBERATED EXMENTAL PATIENTS FROM NORTHAMPTON STATE HOSPITAL PROVIDES AS ELOQUENT A PICTURE OF THE RESULTS BROUGHT ABOUT BY PROGRESSIVEMINDED ADVOCATES OF UNRESTRICTED LIBERTY FOR THE DERANGED AS ANY WE HAVE LATELY SEEN THE FILM DOES IT IS TRUE OFFER BENIGN EXAMPLES OF RELEASED PATIENTS WANDERING IN HAPPY CONFUSION THROUGH THE TOWN'S STREETS BUT ITS REAL CENTER IS CLEARLY ON THE VIOLENT MENTALLY ILL AND THEIR ENDANGERED FAMILIES THE FILMMAKERS RECOUNT THE PLIGHT OF A MINISTER AND HIS WIFE WHOSE HABITUALLY VIOLENT PSYCHOTIC SON BRUTALLY ASSAULTED THEM BECAUSE OF THE NEW RIGHTS LAWS WON FOR THE MENTALLY ILL THEIR SON HAD THE RIGHT TO REFUSE HOSPITALIZATION AND ANY TREATMENT ONE JUDGE REARDON FINDS NO REASON TO RECOMMIT HIM NOTWITHSTANDING PSYCHIATRIC TESTIMONY ABOUT THE RISK OF CONTINUING VIOLENCE THE ACTIVIST LAWYER WHO WON THE LANDMARK 1978 LAWSUIT THAT GAVE MENTAL PATIENTS THE RIGHT TO WANDER THE STREETS FREELY AND UNTREATED AND TO LIVE IN DEGRADATION IS ON HAND HERE TOO TO EXPLAIN THE WISDOM OF HIS VISION NOVA UNDERTAKES THE HISTORY OF CODEBREAKING AND THE EXPERTS WHO UNDID THE BEST SECURITY ARRANGEMENTS OF GERMANS AND JAPANESE BOTH IN THE FIRST AND THE SECOND WORLD WARS IT IS AS FASCINATING A HISTORY AS ONE COULD WISH BEGINNING WITH THE FAMOUS ZIMMERMAN TELEGRAM THAT PRECIPITATED THE US ENTRY INTO THE FIRST WORLD WAR AND ON TO THE GERMAN ENIGMA MACHINE OF WORLD WAR II AND THE STILL MORE IMPENETRABLE JAPANESE DEVICE CALLED PURPLE ANALOG IT IS ALSO OF COURSE HISTORY OF A LIFEANDDEATH SORT WHEN ONE CONSIDERS THAT THE DECIPHERING OF THE JAPANESE NAVAL CODE MADE IT POSSIBLE TO PREPARE THE OFFENSIVE AT MIDWAY THAT SPELLED THE BEGINNING OF THE END FOR THE JAPANESE THIS IS ALSO THE STORY OF MEN LIKE WILLIAM FRIEDMAN AND HIS FELLOW CRYPTANALYSTS AND OF WARTIME LIVES SPENT AT THE CODEBREAKER'S ART AND WHO COULD ASK FOR ANYTHING MORE 9401130081 940113 COURTS SAY PENITENTS' SECRETS MAY NOT BE SECRET BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL WARNING TO PENITENTS ANYTHING YOU SAY TO A CLERGYMAN CAN AND SOMETIMES WILL BE USED AGAINST YOU IN COURT THAT'S THE MESSAGE OF A GROWING NUMBER OF LEGAL CASES IN WHICH PROSECUTORS ARE BREACHING THE WALL OF SECRECY THAT HAS SURROUNDED THE CONFESSIONAL SINCE MEDIEVAL TIMES THE HISTORIC CHANGE IN DIRECTION APPEARS TO REFLECT BOTH HEIGHTENED PUBLIC INTEREST IN PUNISHING CRIMINALS AND AN EROSION OF THE TRADITIONAL DEFERENCE ACCORDED RELIGIOUS ACTIVITY TAKE THE MORRISTOWN NJ MURDER TRIAL OF CRAIG SZEMPLE TWO YEARS AGO AFTER THE PROSECUTION HAD ALREADY RESTED ITS CASE AGAINST MR SZEMPLE A JAILHOUSE MINISTER CAME FORWARD WITH THE CLAIM THAT THE DEFENDANT HAD CONFESSED TO HIM THE MINISTER PAUL BISCHOFF SAID HE WANTED TO TAKE THE STAND AGAINST THE ACCUSED WHO HAD PLEADED NOT GUILTY TO THE CHARGES AND HAD CLAIMED HE'D BEEN FRAMED AT FIRST PROSECUTORS IN THE CASE WEREN'T AT ALL SURE THE MINISTER'S TESTIMONY COULD BE ADMITTED IN COURT BUT AFTER LOOKING INTO THE STATE'S RULE ON THE SOCALLED CLERGYPENITENT PRIVILEGE THEY CONCLUDED THAT WHILE A MINISTER COULDN'T BE COMPELLED TO TESTIFY HE APPARENTLY COULD DO SO VOLUNTARILY THE PENITENT SEEMED TO HAVE NO SAY IN THE MATTER THE TRIAL JUDGE AGREED WITH THE PROSECUTORS' ANALYSIS OF THE RULE AND MR BISCHOFF WAS PERMITTED TO TESTIFY MR SZEMPLE'S ATTORNEY GEORGE T DAGGETT SAYS HE BELIEVES THE CASE WAS HEADED FOR AN ACQUITTAL BEFORE THE MINISTER BECAME INVOLVED BECAUSE OF THE LASTMINUTE EVIDENCE A MISTRIAL WAS DECLARED BEFORE THE JURY BEGAN DELIBERATING AND MR SZEMPLE REMAINS IN JAIL AWAITING A RETRIAL MR BISCHOFF MAY HAVE THOUGHT HE WAS SAVING MY CLIENT'S SOUL BUT HE WAS COOKING HIS GOOSE SAYS MR DAGGETT MR BISCHOFF MINISTER OF VISITATION FOR THE TRINITY BAPTIST CHURCH IN MONTVILLE NJ DECLINED TO COMMENT AN INTERMEDIATE STATE APPEALS COURT LAST YEAR REJECTED MR SZEMPLE'S APPEAL AND THE CASE IS NOW PENDING BEFORE THE STATE SUPREME COURT WHERE A DECISION IS EXPECTED SOON IF HE LOSES MR SZEMPLE COULD BE TRIED AGAIN FOR THE 1977 MURDER OF A BOYHOOD FRIEND THE CASE IN WHICH MR BISCHOFF TESTIFIED THE MINISTER COULD ALSO TESTIFY IN TRIALS FOR TWO OTHER MURDERS TO WHICH HE SAYS MR SZEMPLE CONFESSED MR SZEMPLE DENIES HE CONFESSED ANYTHING TO THE MINISTER WHO VISITED HIM IN JAIL AT LEAST 19 TIMES THE SZEMPLE APPEAL COMES AT A TIME WHEN COURTS AROUND THE COUNTRY HAVE BEGUN TO TAKE A NARROWER VIEW OF THE CLERGYPENITENT PRIVILEGE NINE STATES GEORGIA ILLINOIS INDIANA MARYLAND MICHIGAN MISSOURI VERMONT VIRGINIA AND WYOMING ALREADY PERMIT THE PRIVILEGE TO BE BROKEN BY A CLERGYMAN WITHOUT THE PERMISSION OF THE WORSHIPER AND MANY OTHER STATES ARE FINDING A VARIETY OF REASONS NOT TO LET THE PRIVILEGE APPLY IN PARTICULAR INSTANCES MEANWHILE MANY STATES ARE GIVING SIGNIFICANT DEFERENCE TO A RELATIVELY NEW SOURCE OF SOLACE THE PSYCHOTHERAPISTPATIENT RELATIONSHIP IF MR SZEMPLE HAD CONFESSED TO A THERAPIST NEW JERSEY PROSECUTORS SAY THEY WOULDN'T HAVE BEEN ABLE TO USE THE EVIDENCE AGAINST HIM THE THERAPIST PRIVILEGE IN NEW JERSEY ALLOWS THE PATIENT TO BLOCK SUCH DISCLOSURE RELIGIOUSRIGHTS GROUPS AND CIVILLIBERTIES LAWYERS DECRY THE TREND ARGUING THAT PUTTING MINISTERS ON THE WITNESS STAND UNDERMINES THE SANCTITY THAT WORSHIPERS EXPECT IN THEIR SPIRITUAL COMMUNICATIONS IT'S GETTING TO THE POINT WHERE PEOPLE FEEL THEY NEED A MIRANDALIKE WARNING BEFORE THEY TALK TO THEIR PASTOR OR RABBI SAYS ANNEMARIE AMIEL AN ATTORNEY WITH THE RUTHERFORD INSTITUTE WHICH DEFENDS RELIGIOUSRIGHTS CASES MOST STATES STILL GIVE WORSHIPERS SOME PROTECTION IN COMMUNICATIONS WITH MEMBERS OF THE CLERGY THOUGH SELDOM AS MUCH AS ATTACHES TO ATTORNEYCLIENT DOCTORPATIENT OR SPOUSETOSPOUSE COMMUNICATIONS EVEN IN THOSE STATES COURTS HAVE FOUND THAT INFORMATION GIVEN TO A MINISTER CAN BE USED IN COURT IF THE WORSHIPER WASN'T SEEKING FORGIVENESS OR DIDN'T ACT TO KEEP THE MATTER SECRET THE SECRECY CONCERN WAS ADDRESSED IN THE CASE OF JOHN LIST WHO WAS ARRESTED IN 1989 FOR THE 1971 MURDER OF FIVE OF HIS FAMILY MEMBERS MR LIST CLAIMED THE PRIVILEGE SHOULD APPLY TO A WRITTEN CONFESSION ADDRESSED TO HIS PASTOR THAT WAS LEFT AT THE SCENE OF THE MASSACRE BUT A MIDLEVEL APPEALS COURT ALSO IN NEW JERSEY UPHELD MR LIST'S CONVICTION LAST YEAR RULING THAT THE CONFESSION LETTER COULD BE ADMITTED AS EVIDENCE BECAUSE MR LIST COULDN'T HAVE EXPECTED IT TO REMAIN CONFIDENTIAL EXPECTATIONOFPRIVACY WAS ALSO AT ISSUE IN A 1992 CASE IN WHICH A MORMON BISHOP WAS REQUIRED TO ANSWER QUESTIONS CONCERNING A PARISHIONER WHO HAD KILLED A NURSE BEFORE THE ATTACK THE ASSAILANT'S WIFE HAD CALLED THE BISHOP AND SPOKEN TO HIM ABOUT HER HUSBAND THE MORMON CHURCH ARGUED THAT SUCH PRIVATE DISCUSSIONS ARE PROTECTED BUT THE TRIAL JUDGE SAID THE PRIVILEGE WAS WAIVED BECAUSE THE WIFE HAD ALSO CALLED A 911 OPERATOR ABOUT HER HUSBAND THE PRIVILEGE ISSUES ARE PARTICULARLY SENSITIVE RIGHT NOW LAWYERS SAY BECAUSE OF STRONG PUBLIC SUPPORT FOR TOUGH MEASURES AGAINST CRIME PROSECUTORS ARGUE THAT PRIVILEGES UNFAIRLY RESTRICT THE USE OF IMPORTANT EVIDENCE AND TESTIMONY THAT COULD LEAD TO CONVICTIONS IN THE NEW JERSEY MURDER TRIAL THE AMERICAN CIVIL LIBERTIES UNION FILED A BRIEF ARGUING THAT MR SZEMPLE'S RIGHT TO WORSHIP HAD BEEN VIOLATED MOST PEOPLE WHEN THEY GO TO THEIR RELIGIOUS ADVISERS ASSUME THAT WHAT THEY SAY WILL STAY THERE SAYS RONALD CHEN A RUTGERS UNIVERSITY LAW PROFESSOR REPRESENTING THE ACLU ANYONE AND YOU DON'T HAVE TO BE AN ACCUSED SERIAL KILLER TO FEEL THIS WAY WHO HAS SOMETHING THEY AREN'T PROUD OF WOULD BE RELUCTANT TO TELL THEIR MINISTER ABOUT IT MR SZEMPLE'S LAWYER MR DAGGETT WHO YEARS AGO STUDIED TO BE A PRIEST SAYS HE WAS SHOCKED THAT ANY MINISTER WOULD TESTIFY ABOUT A CONFIDENTIAL MATTER THE PRIVILEGE IS MEANT TO ALLOW PEOPLE TO COME FORWARD AND GET SOME RELIEF BY CONFESSING WE ENCOURAGE PEOPLE TO MAKE PEACE WITH GOD SAYS MR DAGGETT ADDING THAT SOME DEFENSE LAWYERS IN NEW JERSEY NOW WARN THEIR CLIENTS AGAINST TALKING TO JAILHOUSE MINISTERS THE MORRIS COUNTY NJ PROSECUTORS HANDLING THE CASE SAY MR SZEMPLE'S SUPPORTERS ARE EXAGGERATING THE IMPACT THE CASE WILL HAVE ON RELIGIOUS FREEDOM I'D BE UNCOMFORTABLE SENDING INVESTIGATORS OUT TO SYMBOLICALLY KNOCK ON CONFESSIONBOOTH DOORS SAYS COUNTY PROSECUTOR W MICHAEL MURPHY JR BUT WE FELT DUTY BOUND TO USE THE EVIDENCE I WOULDN'T DO IT IN A CASE THAT HAD LESS SIGNIFICANCE A CASE OVER BAD CHECKS FOR INSTANCE BUT HERE WE HAD A CASE INVOLVING SOMEONE CHARGED WITH THREE MURDERS SOME LAWYERS SAY THE BALANCING OF RELIGIOUS CONCERNS AGAINST THE NEED FOR EVIDENCE AT TRIAL IS TILTING IN FAVOR OF PROSECUTORS THESE DAYS THE MOST COMMON COMPROMISES OF THE CLERGY PRIVILEGE INVOLVE CASES OF SUSPECTED CHILD ABUSE MANY STATES REQUIRE THAT INSTANCES OF POSSIBLE CHILD ABUSE BE REPORTED EVEN BY PASTORS WHO MAY LEARN OF SUCH ABUSE IN CONFIDENTIAL DEALINGS WITH CHURCHGOERS PRIVILEGES ARE REAL OBSTACLES TO SEARCHING OUT THE TRUTH AT TRIAL SAYS MICHAEL M SHARLOT A UNIVERSITY OF TEXAS LAW SCHOOL PROFESSOR WHETHER PEOPLE WOULD NOT SEEK THE SUCCOR OF THE CLERGY IF THE PRIVILEGE WERE CUT BACK IS DUBIOUS TO ME FEDERAL AND STATE PROSECUTORS SAID THEY HAVE DROPPED THEIR INVESTIGATION INTO ASSERTIONS THAT REPUBLICANS USED CAMPAIGN MONEY TO SUPPRESS BLACK VOTES IN NEW JERSEY'S GUBERNATORIAL ELECTION LAST NOVEMBER THE ANNOUNCEMENT BY US ATTORNEY MICHAEL CHERTOFF IN NEWARK EFFECTIVELY DOUSES THE POLITICAL BRUSHFIRE IGNITED AFTER THE VICTORY OF GOVELECT CHRISTIE TODD WHITMAN OVER DEMOCRATIC INCUMBENT JIM FLORIO LAST NOVEMBER MRS WHITMAN'S CAMPAIGN MANAGER EDWARD J ROLLINS STARTED THE CONTROVERSY AFTER THE ELECTION BY TELLING REPORTERS THAT THE CAMPAIGN HAD DONATED MONEY TO BLACK MINISTERS' FAVORITE CHARITIES IN RETURN FOR THEIR PLEDGES NOT TO URGE THEIR CONGREGATIONS TO VOTE FOR GOV FLORIO MR ROLLINS ALSO ASSERTED THAT SOCALLED WALKINGAROUND MONEY WAS USED TO PERSUADE DEMOCRATIC ELECTION DAY WORKERS TO STAY AT HOME AND WATCH TELEVISION BUT ON WEDNESDAY MR CHERTOFF AND TWO FORMER STATE ATTORNEYS GENERAL SAID THEIR INVESTIGATION FOUND NO EVIDENCE TO SUPPORT THESE ASSERTIONS WHICH MR ROLLINS HAS SINCE RETRACTED PROSECUTORS SAID THEY WERE AT A LOSS TO CONCLUDE WHAT LED MR ROLLINS TO MAKE THE CLAIM I'M NOT IN THE BUSINESS OF PSYCHOANALYZING PEOPLE SAID MR CHERTOFF IN A 14PAGE REPORT INVESTIGATORS SAID THEY INTERVIEWED 62 INDIVIDUALS INCLUDING MR ROLLINS COMBED THROUGH 5500 PAGES OF FINANCIAL RECORDS AND EXAMINED CAMPAIGN MEMORANDA CORRESPONDENCE TELEPHONE RECORDS APPOINTMENT BOOKS AND COMPUTER FILES THREE DOZEN FBI AND STATE INVESTIGATORS SHARED INFORMATION AND INDEPENDENTLY REACHED THE SAME CONCLUSION AT A NEWS CONFERENCE MRS WHITMAN THE FIRST WOMAN ELECTED GOVERNOR IN NEW JERSEY SAID SHE HAD BEEN CONFIDENT FROM THE BEGINNING THAT NOTHING WAS THERE AND ADDED THAT SHE WAS PLEASED THE MATTER COULD BE PUT TO REST BEFORE HER INAUGURATION NEXT TUESDAY MR ROLLINS DECLINED TO SPEAK TO REPORTERS IN A STATEMENT HE APOLOGIZED AGAIN TO MRS WHITMAN AND THE BLACK COMMUNITY AND CLERGY IN NEW JERSEY STATE DEMOCRATS WHO SUED TO OVERTURN THE ELECTION RESULTS AFTER MR ROLLINS' COMMENTS DROPPED THE CASE IN NOVEMBER NEITHER THEY NOR THEIR LAWYERS RETURNED PHONE CALLS YESTERDAY MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9401130080 940113 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE COMPUTER INDUSTRY'S MARKETING BATTALIONS HAVE BEEN IN FULL CRY ABOUT THE VIRTUES OF MULTIMEDIA SOFTWARE PC PROGRAMS FEATURING COMBINATIONS OF ANIMATION SOUND VIDEO TEXT AND GRAPHICS IN FACT THE ADVENT OF MULTIMEDIA ON THE COMPUTER HAS BEEN A KEY REASON FOR THE SURGE IN HOME COMPUTER SALES ESPECIALLY OF MODELS WITH SOUND CAPABILITY AND CDROM DISK DRIVES THE EQUIPMENT NEEDED TO PLAY THE HIGHCAPACITY PLATTERS ON WHICH MOST MULTIMEDIA SOFTWARE IS DISTRIBUTED I'VE RECOMMENDED SOME SUCH PROGRAMS MYSELF AND WILL CONTINUE TO DO SO BUT IT'S TIME TO REVEAL THE DIRTY LITTLE SECRET OF THE INDUSTRY MARKETERS THE DARK SIDE OF MULTIMEDIA IN MANY CASES GETTING MULTIMEDIA HARDWARE AND ESPECIALLY SOFTWARE TO RUN ON A TYPICAL IBMCOMPATIBLE COMPUTER CAN BE A FRUSTRATING EVEN IMPOSSIBLE TASK A CASE IN POINT WHEN A MUCHPUBLICIZED MULTIMEDIA HEALTHCARE SIMULATION PROGRAM SIMHEALTH WAS ISSUED TO GREAT PUBLICITY LATE LAST YEAR AT LEAST ONE COMPUTERSAVVY WHITE HOUSE STAFFER AND OTHER USERS INCLUDING YOURS TRULY COULDN'T GET IT TO WORK WITHOUT HELP FROM ITS PUBLISHER MAXIS THE SOFTWARE REQUIRED USERS TO ANSWER DETAILED TECHNICAL QUESTIONS ABOUT COMPONENTS OF THE COMPUTER AND SOME OBVIOUS CHOICES DIDN'T SEEM TO WORK THE PROGRAM WAS RUSHED OUT BEFORE TESTING WAS COMPLETED HAS BEEN IMPROVED AND MAXIS NO LONGER OWNS IT BUT THE SYNDROME IS WIDESPREAD NEITHER THE BASIC PC HARDWARE NOR THE UNDERLYING OPERATING SYSTEM SOFTWARE WHICH CONTROLS IBMCOMPATIBLES WAS DESIGNED TO PRODUCE SINGING DANCING VIDEO ON THE SCREEN MODIFYING THESE SYSTEMS FOR MULTIMEDIA CAN MEAN ALTERING THE COMPUTER'S CONFIGURATION IN WAYS THAT MESS UP THE MORE MUNDANE COMPONENTS SUCH AS MODEMS AND WORDPROCESSING SOFTWARE SOME PRODUCTS REQUIRE YOU TO KNOW HIGHLY TECHNICAL TERMS TO EVEN UNDERSTAND THEIR EXPLANATIONS OF HOW THEY ARE CHANGING YOUR MACHINE'S CONFIGURATION WORSE THERE ARE SOME PRODUCTS THAT RECONFIGURE KEY ASPECTS OF YOUR COMPUTER WITHOUT INFORMING YOU AT ALL IN ALL THESE CATEGORIES GAME SOFTWARE IS THE WORST OFFENDER SO HERE'S A BRIEF RUNDOWN OF THE KINDS OF PROBLEMS YOU MAY FACE IN GETTING MULTIMEDIA PRODUCTS TO RUN ON YOUR COMPUTER IN FUTURE COLUMNS ON MULTIMEDIA I PLAN TO WITHHOLD A FAVORABLE RECOMMENDATION FROM ANY PROGRAM THAT'S TOO HARD TO INSTALL OR INTERFERES WITH OTHER SOFTWARE THIS DISCUSSION IS LIMITED TO IBMCOMPATIBLES IN GENERAL USERS OF APPLE'S MACINTOSH COMPUTERS FACE VERY FEW OF THESE PROBLEMS BECAUSE A SINGLE COMPANY APPLE MAKES BOTH THE HARDWARE AND THE OPERATING SYSTEM AND HAS MADE SOUND GRAPHICS AND VIDEO A PRIORITY THE FIRST MULTIMEDIA PROBLEM MANY IBMCOMPATIBLE USERS ENCOUNTER COMES WHEN THEY TRY TO ADD SOUND CAPABILITY AND/OR CDROM DRIVES TO OLDER MACHINES THIS REQUIRES OPENING THE COMPUTER AND INSTALLING AT LEAST ONE OR MAYBE TWO FLAT CARDS JAMMED WITH CHIPS INTO SPECIAL SLOTS IN TOO MANY CASES THIS REQUIRES HOURS OF MADDENING ADJUSTMENT OF TINY SWITCHES OR SOFTWARE SETTINGS TO PREVENT THE NEW EQUIPMENT FROM DISABLING THINGS LIKE MODEMS AND MICE IT'S MUCH BETTER IF BUYING A NEW COMPUTER TO GET ONE WITH STEREO SOUND AND A CDROM DRIVE BUILT IN EVEN IF YOU CLEAR THIS HURDLE HOWEVER HOURS OF AGGRAVATION AWAIT YOU AS YOU TRY TO INSTALL AND RUN MULTIMEDIA SOFTWARE ESPECIALLY GAMES AND OTHER PROGRAMS THAT DON'T TAKE ADVANTAGE OF MICROSOFT WINDOWS BUT RELY ON THE OLDER MSDOS OPERATING SYSTEM I ESTIMATE THAT A THIRD OF THE MULTIMEDIA PROGRAMS I'VE TESTED LATELY HAVE CAUSED PROBLEMS ONE PROBLEM IS WHAT THE WHITE HOUSE AND I FACED PROGRAMS THAT EXPECT YOU TO KNOW THE MAKE AND MODEL OF YOUR AUDIO AND VIDEO CIRCUITRY AND EVEN COMPLICATED CONFIGURATION INFORMATION ABOUT THEM ONE SUCH PROGRAM IS THE GAME MAD DOG MCCREE BY AMERICAN LASER GAMES WORSE IS SOFTWARE THAT REQUIRES YOU TO MAKE BIG CHANGES IN THE BASIC CONFIGURATION OF YOUR COMPUTER SOME OF THESE PROGRAMS TINKER WITH SPECIAL CONFIGURATION FILES CALLED AUTOEXECBAT AND CONFIGSYS IN WAYS MOST USERS DON'T AND SHOULDN'T HAVE TO UNDERSTAND AND THAT CAN GOOF UP WINDOWS OR OTHER PROGRAMS STILL OTHER SOFTWARE REFUSES TO RUN OR EVEN TO INSTALL UNLESS YOU SOMEHOW FIND AND RUN A DRIVER FOR SOMETHING CALLED VESA VIDEO A NEW STANDARD THAT MOST SOFTWARE DOESN'T USE ANOTHER GROUP OF PROGRAMS TRIES TO SEIZE ALL YOUR COMPUTER MEMORY OR UTILIZE AN OLDER TYPE OF MEMORY MANAGEMENT THAT MOST MODERN PROGRAMS DON'T USE AMONG THE PRODUCTS I'VE FOUND GUILTY OF ONE OR MORE OF THESE TRAITS LATELY ARE A GAME CALLED THE 7TH GUEST BY VIRGIN GAMES A PROGRAM CALLED SID & AL'S INCREDIBLE TOONS BY DYNAMIX AND SOME GAMES FROM SIERRA ONLINE IN SOME CASES SOFTWARE MAKERS SUGGEST YOU CREATE A FLOPPY DISK CONFIGURED ONLY FOR THEIR PRODUCTS AND START YOUR COMPUTER USING THE FLOPPY INSTEAD OF YOUR HARD DISK THAT'S NOT ONLY CUMBERSOME IT'S A THROWBACK TO 1981 COMPUTING THAT WOULDN'T BE NECESSARY IF THE SOFTWARE WORKED BETTER WITH STANDARD MACHINES AND WITH WINDOWS SOME COMPANIES DO A GREAT JOB OF THIS INCLUDING KNOWLEDGE ADVENTURE AND MEDIO INFOCOM'S FASCINATING NEW GAME RETURN TO ZORK GAVE ME NO TROUBLE NOR HAVE ANY OF THE MICROSOFT MULTIMEDIA TITLES SO IT CAN BE DONE IT'S TIME THE REST OF THE COMPUTER INDUSTRY GETS THE MESSAGE THAT COMPUTER USERS SHOULDN'T HAVE TO BE TECHIES TO USE MULTIMEDIA 9401130079 940113 LETTERS TO THE EDITOR THEY MAKE'EM AND BREAK'EM IT WAS AMUSING TO READ THE DEC 14 LEGAL BEAT COLUMN WHICH REPORTED THAT THE CALIFORNIA SUPREME COURT RULED IN A DECISION CONTRARY TO OTHER COURTS THAT LAW FIRMS CAN INCLUDE ANTICOMPETITION CLAUSES IN THEIR PARTNERSHIP AGREEMENTS AND THE CALIFORNIA COURTS WILL ENFORCE THEM THE PURPOSE OF SUCH CLAUSES IS TO MAKE IT MORE DIFFICULT FOR DEPARTING LAWYERS TO CONTINUE TO REPRESENT CLIENTS AFTER LEAVING THE FIRST LAW FIRM RULE 1500 OF THE CALIFORNIA RULES OF PROFESSIONAL CONDUCT PROHIBITS SUCH ANTICOMPETITIVE AGREEMENTS THE COMMENTARY TO THIS RULE STATES EXPLICITLY THAT WHEN A LAWYER LEAVES THE FIRM WHETHER THE DEPARTURE WAS VOLUNTARY OR INVOLUNTARY THE LAWYER MUST BE FREE TO PRACTICE LAW WITHOUT ANY CONTRACTUAL RESTRICTION EXCEPT IN THE CASE OF RETIREMENT FROM THE ACTIVE PRACTICE OF LAW A LAWYER WHO VIOLATES THESE RULES CAN BE DISBARRED BY THE WAY DO YOU KNOW WHO PROMULGATES THESE RULES IT IS THE CALIFORNIA SUPREME COURT NOW YOU KNOW WHY I AM AMUSED 9401130078 940113 IT BREWS IT TOASTS IT FRIES AN EGG BUT YOU'LL HAVE TO DRESS YOURSELF BY CARLA D WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL WAKE UP AND SMELL THE COFFEE WITH FRIED EGGS AND TOAST ON THE SIDE A NEW GADGET FROM WELBILT CORP CALLED BREAKFAST EXPRESS WILL PREPARE TWO EGGS SUNNY SIDE UP TOAST AND COFFEE AND HAVE THEM READY WHEN YOU WAKE UP THE MACHINE WHICH WILL RETAIL FOR 400 IS AN AMPLIFICATION OF THE AUTOMATIC COFFEE MAKER THE NIGHT BEFORE ITS OWNER PUTS GROUND COFFEE AND WATER IN THE BREWER BREAD SLICES IN THE OVEN COMPONENT AND ONE OR TWO EGGS IN A CRACKING AREA THE NEXT MORNING AT A PREDETERMINED TIME A RAZORSHARP BLADE SLICES OFF THE BOTTOMS OF THE EGGS AND THEY DROP ONTO A NONSTICK GRIDDLE AS THE COFFEE BREWS AND THE BREAD TOASTS THE EGGS ARE COOKED TO ORDER FROM RUNNY TO FIRM WELBILT HAS HAD CONSIDERABLE SUCCESS WITH BREAD MACHINES WHICH TURN RAW INGREDIENTS INTO FRESHBAKED BREAD AND IT FIGURES THE SAME MARKET WILL APPRECIATE A HOT BREAKFAST ON DEMAND IT ALSO CITES AMERICAN EGG BOARD STUDIES DETECTING NOSTALGIA FOR EGGS AND OTHER TRADITIONAL BREAKFASTS ITS PRODUCT THE COMPANY SAYS WOULD LET A WORKING MOM OR DAD SEND OFF THE FAMILY IN THE MORNING WITH A QUICK NUTRITIOUS BREAKFAST SOME WELBILT MARKETERS EVEN INSIST THE DEVICE WOULD BE IDEAL FOR TRUCK DRIVERS TO USE IN LIEU OF A DINER THE MACHINE WHICH WILL BE FEATURED AT THE INTERNATIONAL HOUSEWARES SHOW IN CHICAGO THIS MONTH WILL BE SOLD THROUGH MAINLINE DEPARTMENT STORES AND SPECIALTY CATALOGS SO FAR HOTELS AREN'T WORRIED THAT THE MACHINE WILL CUT INTO THEIR BREAKFAST CLIENTELE PHILIPPE FERET EXECUTIVE CHEF AT THE REGENCY HOTEL ON NEW YORK'S PARK AVENUE SAYS THE PEOPLE WHO TURN OUT FOR THE HOTEL'S POWER BREAKFAST CARE MORE ABOUT THE ART OF THE DEAL THAN THE MEAL IT'S NOT JUST BREAKFAST CHEF FERET SAYS IT'S LIKE A SPECIAL GATHERING PLACE IT TOOK WELBILT THREE YEARS TO FIGURE OUT HOW TO DUPLICATE THE CAREFUL CRACKING AN EGG REQUIRES TO AVOID A RUNNY YOLK AND KEEP OUT BITS OF SHELL SO HOW MANY EGGS KEPT BREAKFAST EXPRESS FROM BECOMING AN EXPENSIVE OMELETTE MAKER HUNDREDS PERHAPS THOUSANDS SAYS TOM LACALAMITA A COMPANY SPOKESMAN IN A DEMONSTRATION FOR TWO BREAKFAST EATERS ONLY ONE OF FOUR YOLKS CAME OUT BROKEN 9401130077 940113 MORE THAN 20 BILLION ENTERS MONEY FUNDS AS YIELDS HEAD SOUTH NEW YORK INVESTORS POURED MORE THAN 20 BILLION INTO MONEYMARKET MUTUAL FUNDS IN THE LATEST WEEK AS TAXABLE YIELDS SLIPPED AND TAXFREE YIELDS PLUMMETED IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 275 FROM 278 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXEXEMPT FUNDS PLUNGED TO 174 FROM 236 THE NEWSLETTER REPORTED THE LATEST TAXFREE AVERAGE A NEARRECORD LOW IS EQUIVALENT TO A TAXABLE 272 FOR INVESTORS IN THE 36 TAX BRACKET AND TO 288 FOR SOMEONE PAYING 396 IN TAXES COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 635 TAXABLE FUNDS ROSE BY 1574 BILLION TO 48918 BILLION ACCORDING TO MONEY FUND REPORT MOST OF THAT INFLOW 1373 BILLION WENT TO 195 FUNDS OPEN ONLY TO INSTITUTIONAL INVESTORS INDIVIDUALS ADDED JUST OVER 2 BILLION TO THE REMAINING TAXABLE FUNDS ASSETS OF 339 TAXEXEMPT FUNDS GREW BY 632 BILLION INCLUDING 135 BILLION IN INSTITUTIONAL MONEY IT'S A SEASONAL PATTERN SAID WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ASSETS OF MONEY FUNDS TYPICALLY RISE IN JANUARY AS INVESTORS DEPOSIT ANNUAL PENSION AND OTHER RETIREMENTPLAN CONTRIBUTIONS AND YEAREND BONUSES YIELDS OFTEN DECLINE BECAUSE OF A REDUCED SUPPLY OF SHORTTERM SECURITIES AT THE START OF THE YEAR WHICH PUSHES UP PRICES THIS IS MOST ACUTELY FELT BY TAXFREE FUNDS BECAUSE SHORTTERM MUNICIPAL SECURITIES ARE IN PARTICULARLY SHORT SUPPLY THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLID TO 271 FROM 275 IN THE LATEST WEEK MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 272 AND THE AVERAGE 30DAY COMPOUND YIELD INCHED UP TO 276 FROM 275 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 59 DAYS AVERAGE MATURITY OF THE TAXFREE FUNDS SHORTENED BY TWO DAYS TO 58 DAYS 9401130076 940113 LETTERS TO THE EDITOR HERE'S THE WAY I REMEMBER IT THE ONLY MEMORY LOSS IN AL HUNT'S JAN 6 COLUMN IS HIS OWN CLINTON ALLEGATIONS CAUSE GOP MEMORY LOSS OPED POLITICS & PEOPLE MR HUNT ARGUES THAT MY REQUEST FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO EXAMINE THE BURGEONING WHITEWATER CONTROVERSY IS SOMEHOW INCONSISTENT WITH A STATEMENT I MADE LAST NOVEMBER OPPOSING THE REAUTHORIZATION OF THE INDEPENDENT COUNSEL ACT THE STATEMENT MR HUNT CITES AS INCONSISTENT IS THIS WE OUGHT TO HAVE CONFIDENCE IN OUR NATION'S ATTORNEY GENERALCONFIDENCE THAT SHE CAN CONDUCT CRIMINAL INVESTIGATIONS WITH INDEPENDENCE AND WITHOUT THE INTRUSION OF POLITICS NOW HERE'S WHAT MR HUNT FORGOT THE VERY NEXT SENTENCES OF MY REMARKS MAKE THIS POINT IN FACT THE ATTORNEY GENERAL ALREADY HAS THE AUTHORITY TO APPOINT SPECIAL COUNSELS IN CASES THAT MERIT AN INDEPENDENT REVIEW THIS AUTHORITY EXISTS WITH OR WITHOUT AN INDEPENDENT COUNSEL STATUTE AND IT HAS BEEN INVOKED BY PAST ATTORNEYS GENERAL IT DIDN'T FIT MR HUNT'S ARGUMENT BUT THE FACT IS I OPPOSED THE INDEPENDENT COUNSEL STATUTE IN PART BECAUSE THE ATTORNEY GENERAL ALREADY HAS THE AUTHORITY TO APPOINT SPECIAL COUNSELS THE SAME AUTHORITY REPUBLICANS DEMOCRATS AND EDITORIAL WRITERS FOR MANY OF THE NATION'S MOST RESPECTED NEWSPAPERS HAVE NOW URGED ATTORNEY GENERAL RENO TO USE MR HUNT THEN SUGGESTS I WOULD BE CRITICAL OF ANY FINAL REPORT EXONERATING THE CLINTONS IN FACT I HAVE PROVIDED ATTORNEY GENERAL RENO WITH A LIST OF SEVEN INDIVIDUALS INCLUDING SUCH PROMINENT DEMOCRATS AS FORMER CARTER ADMINISTRATION ATTORNEYS GENERAL GRIFFIN BELL AND BENJAMIN CIVILETTI WHOM I BELIEVE WOULD BE SUITABLE FOR APPOINTMENT AS WHITEWATER SPECIAL COUNSEL ALL SEVEN INDIVIDUALS HAVE REPUTATIONS FOR INTEGRITY AND COMPETENCE THAT ARE UNASSAILABLE AND WHOSE CONCLUSIONS WOULDN'T BE SECONDGUESSED BY ME OR I BELIEVE MOST REPUBLICANS I HATE TO DISAPPOINT AL HUNT BUT I'LL HAVE TO DECLINE HIS NOMINATION FOR HIS POLITICAL INCONSISTENCY AWARD THE FACTS DISQUALIFY ME 9401130075 940113 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN INVENTORIES SHRINK BUT MANUFACTURERS REMAIN NERVOUS ABOUT STOCKPILING SOME COMPANIES SAY THEY ARE WALKING A TIGHTROPE BETWEEN STOCKS AND DEMAND UNION CAMP IN NEW JERSEY ADMITS IT WOULD FEEL MORE COMFORTABLE IF IT REBUILT DEPLETED BOX INVENTORIES BUT MATERIALS ARE TIGHT AND IT DOESN'T THINK RECENT STRONG ORDERS WILL CONTINUE AUTO MAKERS AS USUAL ARE BUILDING CARS NOW FOR SPRING SALES BUT THEY AREN'T GOING OVERBOARD AT YEAR'S END GM HAD AN 80DAY SUPPLY OF CARS AND TRUCKS A BIT ABOVE THE INDUSTRY NORM OF 60 TO 70 DAYS BUT A FAR CRY FROM THE 1980S WHEN GM OFTEN CARRIED 100 DAYS' WORTH OF CARS THE NATION'S PURCHASING AGENTS SAID DECEMBER INVENTORIES DECLINED MORE STEEPLY THAN THE PREVIOUS MONTH MAGNETEK INC A LOS ANGELES MAKER OF ELECTRICAL EQUIPMENT FOR ONE IS STILL WHITTLING IT DOESN'T TAKE VERY MUCH TO TIP THE ECONOMY BACK THE OTHER WAY SAYS A SPOKESMAN MORGAN STANLEY ECONOMIST STEPHEN ROACH SAYS ATTEMPTS TO CREATE JUSTINTIME INVENTORY MAY CURB BUT NOT KILL CYCLICAL REBUILDING OF STOCKS STONE CONTAINER CORP IN CHICAGO SAYS BUSINESS IS EXCELLENT WHILE INVENTORIES ARE LOW TO ADEQUATE TAX FOR ART'S SAKE GIFTS OF ART MAY GET ANTICIPATORY IRS RULINGS EVERY YEAR THE IRS DUKES IT OUT WITH DONORS IT BELIEVES OVERSTATED THE VALUE OF ART GIFTS SOME 74 MILLION IN ADJUSTMENTS WERE SOUGHT BY THE IRS IN 1992 BUT A NEW DIRECTIVE FROM THE 1993 TAXBILL COMMITTEE MAY CHANGE THAT THE IRS IS STUDYING THE FEASIBILITY OF ADVANCE VALUATION OR RULING ON A GIFT'S VALUE BEFORE A PIECE OF ART IS GIVEN THIS WOULD DEFINITELY BE BREAKING NEW GROUND AS FAR AS RULINGS GO SAYS AN IRS SPOKESMAN THE IRS REPORT WHICH WILL DEAL WITH QUESTIONS SUCH AS USER FEES FOR RULINGS MINIMUM VALUES AND NEUTRAL APPRAISERS IS DUE BY AUGUST IF THE CONCEPT FLIES IT MAY BE A WIN SITUATION FOR ALL SAYS NEW YORK ATTORNEY ROBERT PERSKY WHILE SOME SMALL GIFTS MAY BE DISCOURAGED BIG DONORS ARE LIKELY TO MIX AND MATCH PIECES TO ACCUMULATE A DESIRED DEDUCTION ACCOUNTANTS WON'T GET YELLED AT AND THE IRS WON'T HAVE TO FIGHT FOR ADJUSTMENTS SAYS MR PERSKY LOOT AND LEAVE A PLOY THAT FED THE S&L CRISIS MAY FIND NEW PICKINGS INSURANCE PORTFOLIOS UNDERFUNDED PENSIONS AND HUDBACKED MORTGAGES COULD BE RIPE AREAS OF FINANCIAL LOOTING SAY TWO PROFESSORS AT THE UNIVERSITY OF CALIFORNIA BERKELEY KEY ELEMENTS FOR SUCH LOOTING ARE BIG SUMS OF MONEY WITH SOME GOVERNMENT GUARANTEE REAL OR IMPLIED A PAPER ON THE ECONOMIC UNDERWORLD OF BANKRUPTCYFORPROFIT BY PROFESSORS PAUL ROMER AND GEORGE AKERLOF OF BERKELEY IS BEING PUBLISHED THIS WEEK BY THE BROOKINGS INSTITUTION BASED IN WASHINGTON SIMPLY PUT A LOOTER BUYS A FIRM RICH IN CURRENT FINANCIAL ASSETS IN A BUSINESS WHERE FUTURE LIABILITIES ARE TOUGH TO PIN DOWN LIKE HEALTH INSURANCE THE OWNER THEN REAPS THE CASH THROUGH DIVIDENDS SALARIES OR INSIDE DEALS WHILE SKEWING ACCOUNTING SO REGULATORS DON'T POUNCE LEAVING A SHELL TO DEAL WITH LIABILITIES WITH HEALTH CARE IN TRANSITION INSURANCE FIRMS MAY BE MORE WILLING TO SELL OUT AND CLIENTS MAY BE MORE LIKELY TO BUY MARGINAL INTERIM COVERAGE IT'S VERY EASY TO HIDE BANKRUPTCY WITH ACCOUNTING TRICKS SAYS DR ROMER GETTING GATT GOT EASIER NOW THAT THE COMMERCE DEPARTMENT'S NATIONAL TECHNICAL INFORMATION SERVICE MARKETS COPIES VIA COMPUTER THE REPORT WAS SCARCE IN THE US BECAUSE THE ORIGINAL PRINTING LAST MONTH IN GENEVA WAS CURTAILED WHEN PRESSES BROKE A GAMING THINK TANK IS PLANNED AS PART OF THE NEW NATIONAL INDIAN GAMING INSTITUTE AT THE COLLEGE OF THE MENOMINEE NATION IN KESHENA WIS THE INSTITUTE FUNDED PARTLY BY GAMING DOLLARS AIMS TO STRENGTHEN THE INDIAN GAMING INDUSTRY COMPANY SPONSORSHIP SPENDING IN 1994 COULD RISE 15 TO 425 BILLION SAYS THE INTERNATIONAL EVENTS GROUP IN CHICAGO SPONSORSHIP OF SPORTS IS LIKELY TO DOMINATE AS IN 1993 WHEN EVENTS LIKE THE OLYMPICS AND WORLD CUP '94 BOOSTED SPENDING MAKING WAVES ON THE LOW AND HIGH ENDS OVERALL BOAT SALES ARE STILL BECALMED PERSONAL WATERCRAFT THE SITON NOT IN CRAFT THAT LOOK MORE LIKE DOLPHINS THAN DINGHIES AND NEW JETBOATS WITH BUILTIN ENGINES PROBABLY WILL BE THE HOT TREND IN 1994 SAYS JILL KRUTICK OF SALOMON BROTHERS OVERALL SHE SEES ONLY MODEST IMPROVEMENT IN BOAT SALES AN INDUSTRY LEADER CANADIAN BOMBARDIER INC'S SEADOO WATERCRAFT UNIT TAKES ADVANTAGE OF A STRONG CURRENCY TO CUT US RETAIL PRICES BY ABOUT 5 ON MODELS THAT RUN FROM 4500 TO 6300 THE MOVE IS A BID TO VEX JAPANESE COMPETITORS UNIT SALES OF PERSONAL WATERCRAFT ROSE 35 IN 1993 WHILE SALES OF BIG CRUISERS FELL 5 BUT JOHN OWENS EDITOR OF BOATING MAGAZINE SAYS THE REPEAL OF THE LUXURY TAX IS REKINDLING INTEREST IN BIG BOATS IN NEW JERSEY VIKING YACHT SAYS ORDERS ARE RISING FOR ITS VESSELS WHICH AVERAGE 750000 SO VIKING RECENTLY HIRED 85 MORE WORKERS BRINGING ITS FORCE TO 400 UP FROM A LOW OF 60 IN 1991 BUT BELOW 1990'S 1500 WORKERS IF THE WINTER BOAT SHOWS GO WELL VIKING SAYS IT MAY ADD ANOTHER PRODUCTION LINE AND 100 WORKERS IN THE SPRING BRIEFS A SHOW PROPOSED FOR THE GOLF CHANNEL ABOUT DESIGNING BUILDING AND GROOMING TOP COURSES IS CALLED MAKING THE GRADE MIDCONTINENT AGENCIES INC A CHICAGO BILL COLLECTOR SAYS A WEST COAST VETERINARIAN WHO WAS BEHIND IN BILLS BLAMED A ROWDY GERMAN SHEPHERD WHO GOT LOOSE ONE NIGHT AND ATE THE OFFICE CHECKBOOK 9401130074 940113 WHO'S NEWS KAISER RESOURCES INC KAISER RESOURCES INC RANCHO CUCAMONGA CALIF PRESIDENT DANIEL N LARSON 39 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING RICHARD E STODDARD 43 WHO CONTINUES AS CHAIRMAN OF THE LANDDEVELOPMENT AND ENVIRONMENTALSERVICES FIRM 9401130072 940113 TECHNOLOGY ENVIRONMENTALISTS FORM PHONE FIRM WITH GREEN GOALS EARTH TONES OFFERS CUSTOMERS CHANCE TO DIAL A FRIEND AND RESCUE RAIN FOREST BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF ENVIRONMENTAL ORGANIZATIONS HAS FORMED OF ALL THINGS A LONGDISTANCE TELEPHONE COMPANY THE BOSTON COMPANY EARTH TONES PROMISES PRICES 5 TO 10 LOWER THAN THE BASE RATES OF LEADING CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO PROFITS FROM CUSTOMER CALLS WILL BE USED FOR GREEN CAUSES SUCH AS SAVING SPOTTED OWLS RESCUING THE RAIN FORESTS AND SPREADING THE ENVIRONMENTAL GOSPEL FOR NOW EARTH TONES IS A MERE SNAIL DARTER OF A BUSINESS WITH 600 CUSTOMERS NATIONWIDE SIGNED UP DURING A SIXMONTH TRIAL PERIOD BUT RECENTLY IT MAILED 100000 BROCHURES SEEKING NEW CUSTOMERS FROM THE MEMBERSHIP LISTS OF ENVIRONMENTALLY FRIENDLY GROUPS OTHER PROMOTIONS ARE ALSO PLANNED ONE SLOGAN ON THE COMPANY'S PROMOTIONAL LITERATURE IS DIALING FOR DOLPHINS WE HAVE NO DEEPPOCKETED INVESTORS OR HIGHPAID EXECUTIVES TO WORRY ABOUT SO PEOPLE CAN FEEL BETTER ABOUT PAYING A PHONE BILL SAID EARTH TONES DIRECTOR DEREK CRESSMAN ALL OF OUR PROFITS GO TO SOMETHING THEY BELIEVE IN BENSON CHILES A WISCONSIN ENVIRONMENTAL ACTIVIST SAID A LOT OF PEOPLE WANT TO HELP THE ENVIRONMENT BUT DON'T FEEL LIKE THEY HAVE THE TIME EARTH TONES GIVES YOU A WAY TO HELP JUST BY CALLING YOUR FRIENDS EARTH TONES' FOUNDERS INCLUDE 12 PUBLIC INTEREST RESEARCH GROUPS THE CONSUMER WATCHDOGS SPAWNED BY RALPH NADER YEARS AGO IT IS AIMING FOR AS MANY AS 10000 CUSTOMERS IN A COUPLE YEARS MR CRESSMAN SAID PROFITS WILL BE SPREAD AMONG A VARIETY OF CAUSES AND GROUPS INCLUDING THE RESEARCH GROUPS THEMSELVES AND OTHER GROUPS INVOLVED IN FORMING THE COMPANY SUCH AS THE NATIONAL ENVIRONMENTAL LAW CENTER EARTH DAY 2000 AND PESTICIDE WATCH EARTH TONES WHICH BUYS LONGDISTANCE CAPACITY FROM ALLNET COMMUNICATIONS SERVICES INC WILL MAIL BILLS DIRECTLY TO ITS CUSTOMERS ON RECYCLED PAPER OF COURSE 9401130071 940113 IN THE LAB STALKING THE DEADLY GUSTS CALLED WIND SHEAR BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ABOVE FORT LAUDERDALE FLA BOARDING THEIR 1952 CONVAIR WITH POWERFUL UPDATED TURBOPROPS ALLIEDSIGNAL INC'S ENGINEER WILLIAM WEIST AND HIS CREW OF FOUR SCIENTISTS AND PILOTS SUGGEST THEY MIGHT BE MISTAKEN FOR DRUG RUNNERS FLYING BENEATH SURVEILLANCE RADARS THIS MORNING AS USUAL THEY WILL FLY AT 300 FEET FIRST EASTWARD OVER THE OCEAN AND THEN IN A WIDE LOOP OVER THE EVERGLADES BUT THEY ARE THE HUNTERS NOT THE PURSUED AND THEIR QUARRY IS WIND SHEAR A VIOLENT AND UNPREDICTABLE CHANGE IN WIND DIRECTION AT LOW ALTITUDES WIND SHEAR CAN DRIVE A JETLINER LANDING OR TAKING OFF INTO THE GROUND SINCE 1964 IT HAS CAUSED AT LEAST 26 AIRCRAFT ACCIDENTS KILLING MORE THAN 500 PEOPLE IN THE US THE DEADLY PHENOMENON WAS IDENTIFIED ONLY TWO DECADES AGO IN THE LAST FIVE YEARS MANY AIRPORTS HAVE INSTALLED RADAR TO PREDICT WIND SHEAR BUT IT CAN TAKE AS LONG AS TWO MINUTES FOR AIRTRAFFIC CONTROLLERS TO RELAY A WINDSHEAR WARNING FROM A GROUND SYSTEM A PILOT MIGHT HAVE ONLY 10 SECONDS TO MANEUVER AWAY FROM A SUDDEN WIND SHEAR ACCORDING TO THE FEDERAL AVIATION ADMINISTRATION NOW THE ALLIEDSIGNAL TEAM HAS DEVELOPED AN ONBOARD DETECTION TECHNOLOGY THAT IT SAYS CAN ISSUE A WARNING 50 SECONDS BEFORE THE PILOT ENCOUNTERS A WIND SHEAR THE TEAM HAS BEEN DEVELOPING THE SYSTEM WHICH IS ESSENTIALLY A HIGHLY MODIFIED WEATHER RADAR SINCE OCTOBER 1991 IT EXPECTS TO HAVE IT READY FOR INSTALLATION ON AIRLINERS EARLY THIS YEAR ON THIS MORNING'S FLIGHT THE SCIENTISTS ARE TESTING HOW WELL THEIR WARNING SYSTEM CAN DIFFERENTIATE WIND SHEAR FROM NONHAZARDOUS GUSTS OF WIND AND RAIN MOVING GROUND TRAFFIC AND OTHER LOWALTITUDE PHENOMENA IF IT RAISES A FALSE ALARM OR MISSES A REAL WIND SHEAR THE ENGINEERS ANALYZE ALL THE DATA SURROUNDING THE ERROR THEN THEY TRY TO MODIFY THE SYSTEM'S ANALYTICAL SOFTWARE TO HONE ITS POWER OF RECOGNITION WE'RE TEACHING THE SYSTEM TO MAKE PRECISE TRANSLATION SAYS MR WEIST THE CHIEF ENGINEER AS THE PLANE ROARS ALOFT MR WEIST SAYS EVERY BIT OF INFORMATION THE PLANE'S RADAR PICKS UP AT LOW ALTITUDES ABOUT MOVING OR STATIONARY OBJECTS WILL BE IMPORTANT THE DEMANDS ON THE SYSTEM REQUIRE IT TO BE MUCH MORE SOPHISTICATED THAN STANDARD AIRCRAFT WEATHER RADAR WHICH MUST SEE ONLY RAIN SNOW OR HAIL TO DETECT A WIND SHEAR MR WEIST'S RADAR MUST FILTER OUT A VARIETY OF CLUTTER FROM THE GROUND INCLUDING FLYING DUST MOVING VEHICLES MOISTURE IN THE WIND FLYING INSECTS AND BIRDS THE SYSTEM MUST RECOGNIZE AND DISCARD SUCH CLUTTER INFORMATION AND ISOLATE THE MOVEMENT THAT UNAMBIGUOUSLY REPRESENTS A WIND SHEAR THAT REQUIRES A MORE ADVANCED TRANSMITTER A MORE SENSITIVE RECEIVER AND A THOUSAND TIMES MORE COMPUTERIZED PROCESSING CAPACITY HE SAYS IT'S LIKE ASKING THE SYSTEM TO LISTEN FOR A WHISPER IN A ROCK CONCERT SAYS MR WEIST A 48YEAROLD INTENSE BUT AFFABLE MAN WHO SOLD HIFI EQUIPMENT IN EAST LANSING MICH BEFORE JOINING ALLIEDSIGNAL 13 YEARS AGO ON THE PLANE A CLUSTER OF INSTRUMENTS THAT COLLECT AND ANALYZE SIGNALS ARE STACKED ON SHELVES THE INSTRUMENTS INCLUDE A MONITOR THAT DISPLAYS THE WEATHER PATTERN AND IN CASE OF A WIND SHEAR AHEAD WOULD DISPLAY THE LOCATION AND SIZE OF THE HAZARD SPEAKERS TO BLARE OUT VOICESYNTHESIZED WIND SHEAR WARNINGS AND A COMPUTER SCREEN THAT PROJECTS IN ZIGZAG GRAPHS THE STRENGTH OF RADAR ECHOES RETURNING TO THE RECEIVER MR WEIST KEEPS A CONSTANT EYE ON THE CONTINUOUS GRAPHS OR SPECTRA ON THE SCREEN IN FRONT OF RAY MCLAUGHLIN AN ENGINEER WHO IS MONITORING THE RETURNED SIGNALS THE GRAPHS ARE MOVING RAPIDLY FROM ONE END OF THE SCREEN TO THE OTHER IN CASCADING PEAKS AND VALLEYS THE SYSTEM IS ANALYZING FOUR MILLION PIECES OF INFORMATION PER SECOND SAYS MR WEIST A SERIES OF SHARP AND NARROW PEAKS ON THE SCREEN IN FRONT OF MR MCLAUGHLIN ATTRACTS MR WEIST'S ATTENTION WE ARE PASSING OVER A LONG CONVOY OF TRUCKS ON I75 MR MCLAUGHLIN EXPLAINS THE ENGINEERS SETTLE BACK TO THEIR ROUTINES THEY TURN KNOBS FLICK SWITCHES STARE AT GRAPHS SCRUTINIZE THE GREEN YELLOW AND RED DISPLAYS ON THE WEATHER RADAR AND COMMUNICATE WITH THE PILOT THE WEATHER IS TOO BEAUTIFUL TODAY TO PRODUCE ANY WIND SHEARS WHICH ARE UNCOMMON IN WINTER IN THE SUMMERS SAYS MR WEIST THE TEAM HAS FLOWN AROUND WIND SHEARS OVER THE EVERGLADES WHERE THEY ARE COMMON AFTER THE WARNING SYSTEM PINPOINTED THEIR LOCATIONS THE TEAM HAS EVEN TESTED THE WARNING SYSTEM BY FLYING THROUGH WIND SHEARS IN ONE SUCH FORAY IN DENVER WHERE WIND SHEAR IS ALSO COMMON THE PLANE DROPPED 600 FEET THE PILOT WILLIAM CALLAN SAID LATER LUCKILY I WAS FLYING AT 1000 FEET THE PLANE MAKES A LOOP AND TURNS WEST BACK TOWARD THE COAST HALFWAY OVER THE EVERGLADES STILL AT 300 FEET THE SHAPES MOVING ON THE MONITOR ATTRACT MR WEIST'S ATTENTION HE UNBUCKLES HIS SEAT BELT AND LEANS OVER TO TAKE A CLOSE LOOK HE SCRUTINIZES THE GRAPHS FOR A FEW MINUTES HE CONSULTS WITH MR MCLAUGHLIN WHO'S ALSO INTENTLY LOOKING AT THE GRAPHS AND THE WEATHER MONITOR ABOVE IT MR WEIST LATER EXPLAINS THAT THE PATTERN LOOKED VERY SIMILAR TO SIGNALS BOUNCING BACK FROM A WIND SHEAR THE WEATHER CONDITION IN WHICH BURSTS OF CONCENTRATED COLD AIR DESCEND TO THE GROUND AND THEN SPREAD OUT HORIZONTALLY AND VIOLENTLY IN ALL DIRECTIONS A CLOSE STUDY REVEALED THAT THE GRAPH IN FACT REPRESENTED TRAFFIC MOVING IN DIFFERENT DIRECTIONS AT AN INTERSECTION ON THE HIGHWAY BELOW THE SIGNALS BOUNCING BACK FROM SUCH A PATTERN OF MOVING VEHICLES CAN MASQUERADE AS A WIND SHEAR SAYS MR WEIST BUT HIS SYSTEM DIFFERENTIATES A WIND SHEAR FROM MOVING TRAFFIC BY MEASURING TARGET VELOCITY CHANGES OVER A CERTAIN RANGE IF THE CHANGE IS CONSTANT THE RETURNED SIGNALS REPRESENT A WIND SHEAR IF IT'S RANDOM IT'S ALMOST ALWAYS TRAFFIC SAYS MR WEIST HE IS PLEASED THAT THE SYSTEM WASN'T FOOLED IF THE SYSTEM GIVES OUT FALSE ALARMS THE PILOT WILL EVENTUALLY IGNORE IT AND THAT WOULD BE DANGEROUS HE SAYS WITH ALL THE EXPERIENCE I HAVE IT TOOK ME THREE MINUTES TO RECOGNIZE THAT THE SPECTRA DIDN'T REPRESENT A WIND SHEAR THAT'S TOO LONG OUR DETECTION SYSTEM DID IT IN SECONDS SAYS MR WEIST THE FINAL PRODUCT FOR THE COCKPIT WILL BE A SMALL RECTANGULAR BOX WITH A WEATHER SCREEN THE PILOT WON'T HAVE TO INTERPRET ANY DATA JUST LISTEN TO THE WARNINGS IT SHOULD BE A NOBRAINER FOR THE PILOT HE SAYS 9401130070 940113 WHO'S NEWS FORMER CAMPEAU AIDE IS FEDERATED'S PITCHMANINCHIEF TO MACY CREDITORS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL RONALD W TYSOE WHO SKILLFULLY BROUGHT WARRING CREDITORS TOGETHER TO PULL FEDERATED DEPARTMENT STORES INC OUT OF BANKRUPTCYLAW PROCEEDINGS IS AT WORK AGAIN CANVASSING RH MACY & CO'S CREDITORS EVER SINCE FEDERATED BOUGHT A BIG CHUNK OF MACY'S SECURED DEBT TWO WEEKS AGO AND SAID IT WANTS TO MERGE WITH ITS RIVAL WHICH IS NOW OPERATING UNDER BANKRUPTCYCOURT PROTECTION MR TYSOE FEDERATED'S VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER HAS BEEN MAKING THE ROUNDS OF MACY CREDITORS TO DISCUSS FEDERATED'S PLAN BACK IN 1992 HE ORCHESTRATED FEDERATED'S RELATIVELY SMOOTH AND SWIFT ABOUT 24 MONTHS EMERGENCE FROM BANKRUPTCY NOW ACCOMPANIED BY BANKRUPTCY LAWYER DAVID G HEIMAN OF CLEVELANDBASED JONES DAY REAVIS & POGUE WHICH REPRESENTS FEDERATED MR TYSOE MAKES FEDERATED'S CASE WITHOUT GOING INTO DETAILS OF HOW IT WOULD CARRY OUT A MERGER MR TYSOE DECLINED TO BE INTERVIEWED BUT MACY CREDITORS WHO HAVE MET HIM SAID HE MAKES CLEAR THAT FEDERATED BELIEVES IT CAN FORGE A BETTER REORGANIZATION PLAN THAN MACY CAN ON ITS OWN AND THAT THE CINCINNATIBASED RETAILER WANTS ALL OF MACY NOT JUST A PIECE AS SOME HAVE SPECULATED BUT MR TYSOE'S MESSAGE IS THEY WANT CONSENSUS FROM THE CREDITORS SAID ROBERT MILLER AN ATTORNEY WITH BERLACK ISRAELS AND LIBERMAN WHO REPRESENTS HOLDERS OF 13 BILLION IN MACY BONDS DESPITE MACY'S COOL RECEPTION TO FEDERATED'S OVERTURES SOME MACY CREDITORS SAID THEY REST EASIER KNOWING THAT THE 40YEAROLD MR TYSOE IS SPEARHEADING FEDERATED'S PLANS HE'S NOT A GUNSLINGER NONE OF THE FEDERATED PEOPLE ARE SAID CHARLES LEEDS A PARTNER IN OMEGA ADVISORS INC WHICH HOLDS BIG POSITIONS IN MACY'S MOST SENIOR BOND ISSUE THAT'S ONE REASON I AM NOT AS AFRAID AS I MIGHT OTHERWISE BE MR TYSOE IS CONSIDERED AN IDEAL COUNTERPART TO FEDERATED'S HIGHPROFILE CHAIRMAN AND CHIEF EXECUTIVE ALLEN I QUESTROM INDEED HIS UNFLAPPABLE STYLE COULD HELP FEDERATED IN WHAT IS CERTAIN TO BE A PROLONGED MERGER ATTEMPT HE'S VERY LEVELHEADED AND UNEMOTIONAL SAID JOHNSON REDBOOK ANALYST PETER N SCHAEFFER I BELIEVE HE'S GOT AN EXACT PLAN DOWN TO WHAT THEY WOULD SELL OFF AND STORES THEY WOULD CLOSE IN A MERGER MR TYSOE WAS INSTRUMENTAL IN THE ILLFATED CAMPEAU CORP TAKEOVERS IN THE 1980S AS A TOP EXECUTIVE UNDER REAL ESTATE DEVELOPER ROBERT CAMPEAU WITH WHOM MR TYSOE HAS ACKNOWLEDGED HAVING A FATHERSON TYPE OF RELATIONSHIP HE HELPED CONSTRUCT BACKTOBACK HOSTILE TAKEOVERS OF ALLIED STORES CORP AND FEDERATED IN DEBTFUELED DEALS IN 1990 FEDERATED AND ALLIED FILED THE LARGEST RETAIL BANKRUPTCY IN US HISTORY AND THE CAMPEAU EMPIRE COLLAPSED BUT MR TYSOE'S REPUTATION WAS UNSULLIED HE WAS CAMPEAU'S RIGHTHAND MAN BUT ONE OF THE FEW GUYS TO SURVIVE THE DISASTER SAID MR SCHAEFFER FEDERATED REALIZED HE HAD A HIGH INTELLECTUAL LEVEL AND KEPT HIM BECAUSE IT WOULD BE EASIER TO GET OUT OF THE BANKRUPTCY WITH SOMEONE WHO KNEW THE INTIMATE DETAILS OF THE TAKEOVERS IN FEDERATED'S BANKRUPTCY THE VANCOUVER BRITISH COLUMBIA NATIVE DEFTLY DEALT WITH A HOST OF CREDITORS GROUPS TYSOE SAT DOWN WITH EACH CREDITOR GROUP ADDRESSED THEIR NEEDS AND MADE A CONSENSUAL PLAN THAT IN THE END EVERYBODY COULD LIVE WITH SAID KAHN CONSULTING'S MR MONHEIT OUR GROUP WAS VERY HOSTILE TO HIM AT FIRST BECAUSE HE WAS CAMPEAU AND CAMPEAU SCREWED A LOT OF PEOPLE HE TURNED OUT TO BE HONORABLE THOUGH SOME CREDITORS ESPECIALLY BANKS FAVORED A BIG ASSET SALE MR TYSOE WAS ABLE TO GET FEDERATED'S BANKS BONDHOLDERS AND SUPPLIERS TO DROP THEIR ORIGINAL CLAIMS LARGELY IN EXCHANGE FOR NEW DEBT CASH AND EQUITY IN A SLIMMEDDOWN AND MORE PROFITABLE FEDERATED WIPING AWAY 5 BILLION IN DEBT BUT MR TYSOE IS IN A FAR DIFFERENT POSITION WITH MACY TYSOE'S NOT DRIVING THE BUS ULLMAN IS SAID MR MONHEIT REFERRING TO MACY CHAIRMAN MYRON E ULLMAN III WHO WANTS TO KEEP HIS COMPANY INDEPENDENT 9401130069 940113 LETTERS TO THE EDITOR SOMETHING AS ALWAYS GETS LOST IN TRANSLATION YOU GOT YOUR LAUGH AT ANDNZEI SZULC THE POLISH TRANSLATOR AND AT THE POLISH LANGUAGE ITSELF WHAT A QUAINT UNSOPHISTICATED LITTLE LANGUAGE IT IS AND SO BIZARRE WHEN TRANSLATED LITERALLY INTO ENGLISH PAGE ONE DEC 1 YES YOU DID MENTION THAT THE TRANSLATIONS SOUND PERFECTLY FINE IN POLISH PERHAPS EVEN BETTER THAN THE ORIGINAL AND YOU DID IMPLY THAT THE LANGUAGE MIGHT BE QUITE BEAUTIFUL TO THOSE WHOSE EARS AND TONGUES ARE ACCUSTOMED TO IT PERHAPS MR SZULC RATHER THAN STRUGGLING TO TURN WHAT NO DOUBT TO HIM IS A STRANGE AND GUTTURAL LANGUAGE INTO FLOWING AND CORRECT POLISH SHOULD TRANSLATE THE NOVELS IN A RIGID LITERAL MANNER JUST AS YOU HAVE DONE WITH THE POOR TRANSLATIONS OF POLISH AND GIVE THE POLES A HEARTY LAUGH THEY WOULD EXCLAIM NO DOUBT THAT ENGLISH MUST INDEED BE A DECIDEDLY RIDICULOUS AND GROTESQUE LANGUAGE YOUR ARTICLE ABOUT ANDNZEI SZULC STRUCK A DISCORDANT NOTE WITH ME REVERSE WORD ORDER IS NOT PECULIAR TO THE POLISH LANGUAGE THEREIN LIES THE DIFFICULTY IN A TRANSLATION THAT MUST BECOME A TRANSLITERATION IN ORDER TO BE UNDERSTOOD ONE MUST ALSO FACE IDIOMATIC EXPRESSION IN BOTH LANGUAGES BEING TRANSLATED IN MY WORK TRANSLATING CORRESPONDENCE TO AND FROM POLAND I AM CONSTANTLY FACED WITH THESE SITUATIONS 9401130068 940113 LETTERS TO THE EDITOR FATHER'S PAINFUL CHOICE GOT US MEDICAL CARE IMAGINE MY SURPRISE TO FIND A QUOTE FROM MY STORY ABOUT GROWING UP ON WELFARE IN YOUR JAN 6 LEAD EDITORIAL THE ROAD NOT TAKEN IT WAS ESPECIALLY SURPRISING TO SEE THE QUOTE USED TO BUTTRESS AN ARGUMENT WITH WHICH I AM IN COMPLETE DISAGREEMENT MY FATHER WALKED OUT MANY BACK DOORS TO INSURE OUR WELLBEING KEY TO THAT WELLBEING WAS THE HEALTH INSURANCE THAN ANY FAMILY WITH CHILDREN KNOWS IS VITAL OUR BEING ON WELFARE WAS THE ONLY WAY FOR MY PARENTS TO BE SURE THAT THEIR FOUR CHILDREN COULD SEE A DOCTOR WHEN WE NEEDED ONE AND FOR SEVERAL YEARS WE NEEDED ONE QUITE A FEW TIMES MY FATHER'S PAINFUL CHOICE IS REPLICATED BY HUNDREDS OF THOUSANDS OF POOR WOMEN AND MEN WHO PUT THE SURVIVAL OF THEIR CHILDREN AHEAD OF THEIR PERSONAL RELATIONSHIPS PRESIDENT CLINTON'S FOCUS ON HEALTHCARE REFORM THAT INCLUDES UNIVERSAL IRREVOCABLE COVERAGE WILL MAKE A MAJOR DIFFERENCE TO FAMILIES ON WELFARE OR NOT HEALTH CARE THAT CAN BE DEPENDED ON WILL MAKE IT A LOT EASIER FOR WOMEN ON WELFARE TO GO TO WORK EVEN IF THAT WORK IS THE DEADEND MINIMUMWAGE WORK THEY HAVE BEEN OFFERED BEFORE 9401130067 940113 ART AND ALZHEIMER'S AGED FIND FOCUS IN SELFEXPRESSION ANNE WATTS'S VISITING ARTISTS RENEW THEMSELVES TOO IN NURSINGHOME WORK BY ELLEN GRAHAM STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE FOR THE PAST YEAR ANNE WATTS AND A DOZEN OTHER ARTISTS HAVE BEEN TAKING ART TO PLACES WHERE IT DOESN'T USUALLY GET TO GO AND SHE SAYS FINDING ART WHERE IT DOESN'T USUALLY GET FOUND SPECIFICALLY NURSING HOMES WHERE PEOPLE WITH ALZHEIMER'S DISEASE LIVE MS WATTS A 31YEAROLD COMPOSER AND SINGER IN A ROCKANDROLL BAND FIGURED THAT ARTISTS WRESTLING CREATIVE DEMONS MIGHT SHARE A COMMON BOND WITH LONELY PEOPLE STRUGGLING TO COMMUNICATE AT LIFE'S END ART MS WATTS BELIEVES ENGAGES ALZHEIMER'S PATIENTS IN THE MOMENT AND MITIGATES THE LOSS OF SELF THE ACT OF CREATION HELPS THEM EXPRESS FEELINGS THAT ARE BEYOND WORDS WHEN MS WATTS PROPOSED THE PROJECT TO MERIDIAN HEALTHCARE INC A CORPORATE PROVIDER OF LONGTERM CARE SHE ENVISIONED SOMETHING QUITE DIFFERENT FROM CONVENTIONAL ART THERAPY WHERE GROUPS TYPICALLY ARE LED THROUGH A TASK SUCH AS COLORING INSTEAD INSTRUCTORS WOULD BE PROFESSIONALS WORKING ONETOONE WITH RESIDENTS WHO CHOOSE THEIR OWN ARTISTIC MEDIUM AND HAVE A FREE HAND THE KEY WAS GIVING THEM CONTROL MS WATTS SAYS A SIMPLE ENOUGH IDEA PERHAPS BUT UNUSUAL IN THE CARE OF THE INSTITUTIONALIZED ELDERLY MORE THAN HALF OF THE US NURSINGHOME POPULATION NOW SUFFERS FROM ALZHEIMER'S DISEASE OR SOME OTHER FORM OF DEMENTIA AND MOST EXIST ON A REGIMEN OF SEDATION TV AND SOMETIMES PHYSICAL RESTRAINTS MERIDIAN WAS ALREADY TRYING AN APPROACH THAT DOVETAILED WITH MS WATTS'S PLAN MERIDIAN A DIVISION OF GENESIS HEALTH VENTURES INC HAS ESTABLISHED SPECIAL UNITS AT EIGHT OF ITS FACILITIES MAINLY IN THE BALTIMORE AREA WHERE DEMENTED RESIDENTS ARE GIVEN 40 HOURS A WEEK OF STRUCTURED ACTIVITY IN THESE SPECIAL CARE UNITS JUST 3 OF THE RESIDENTS REQUIRE PSYCHOACTIVE DRUGS TO MANAGE THEIR BEHAVIOR COMPARED WITH BETWEEN 40 AND 60 OF MERIDIAN'S OTHER RESIDENTS NO ONE SUGGESTS THAT SPECIAL CARE HALTS THE PROGRESSION OF AN INCURABLE DISEASE BUT PEOPLE INVOLVED IN THE EFFORT ARE ENCOURAGED MOST HEALTHCARE WORKERS UNDERESTIMATE THE CAPACITIES OF DEMENTED PATIENTS SAYS DEBRA MCCONNELL MERIDIAN'S DIRECTOR OF ALZHEIMER SERVICES MERIDIAN AGREED TO PUT UP 40000 TO PAY MS WATTS'S ARTISTS FOR THEIR TIME 75 A SESSION SHE BROUGHT TOGETHER PAINTERS MUSICIANS COLLAGE ARTISTS A TRINIDADIAN CERAMICIST AND A FILIPINO QUILTMAKER SOME HAD SPIKED HAIR OR PURPLE FINGERNAILS LEATHER JACKETS DREADLOCKS PEOPLE ON THE FRINGE ABOUT TO MEET ANOTHER OLDER FRINGE GROUP IMPROBABLY THEY CLICKED SHERWIN MARK A JEWISH ARTIST FROM SOUTH AFRICA FOUND HIMSELF PAIRED WITH A GERMAN WOMAN WHO HAD LIVED IN BERLIN DURING WORLD WAR II JAWAD ABDULLAH OF TRINIDAD HELPED LOUIS MUSIC A FORMER MECHANIC FROM NEW JERSEY SCULPT CAR PARTS FROM CLAY COMPLETING A BATCH MR MUSIC TOLD HIS TUTOR WITH A TWINKLE I'M NOT GOING TO CHARGE YOU ANYTHING FOR THESE MS WATTS IS IMPRESSED WITH THE GIVE AND TAKE NURSINGHOME ART HAS GOT THIS RANDOM SELFLESS FREEDOM THAT I'VE SEEN ARTISTS STRIVE THEIR WHOLE LIVES TO ACHIEVE SHE SAYS THUS IN SOME WAYS THE ELDERLY BECAME THE ARTISTS' MENTORS IT HAS OPENED MY SCOPE SAYS 30YEAROLD BALTIMORE ARTIST LYLE KISSACK HE SEES CONTACT WITH HIS ELDERLY STUDENTS AS A WAY TO REFILL TO GET HUMAN AGAIN MR KISSACK LIKENS HIS WORK WITH ONE 80YEAROLD WOMAN TO ARCHAEOLOGY WE'RE ROOTING THROUGH MEMORY TO THE PAST HE SAYS WHEN SHE HAS TROUBLE ARTICULATING AN IDEA AND BEGINS TO FADE OFF I TRY TO REDIRECT THAT INTO HER PAINTING HE SAYS SO SURE ARE HER BRUSH STROKES THAT THE NURSINGHOME STAFF FINDS IT HARD TO REMEMBER THAT WHEN SHE WAS ADMITTED A FEW MONTHS AGO SHE HAD TROUBLE MANAGING A KNIFE AND FORK AFTER A RECENT THREEHOUR PAINTING SESSION SHE WAS TIRED BUT ELATED I'M PERFECT SHE SAID AGAIN AND AGAIN LAUGHING LATER THAT DAY AT MERIDIAN'S BRIGHTWOOD FACILITY NORTH OF BALTIMORE LOVISAH LOVEY BUMGARNER A SILVERHAIRED BARBARA BUSH LOOKALIKE IN PEARLS DROPPED WEARILY INTO A CHAIR BEFORE A BLANK CANVAS BUT AS SHE BECAME ENGROSSED THE 95YEAROLD FORMER NURSE STOOD WITHOUT THE HELP OF HER CANE LAYING ON AN INTRICATE COMPOSITION OF BRIGHTLY COLORED LINES SHE HAS COMPLETED 15 WORKS WHEN INTRODUCED AS A PAINTER MRS BUMGARNER SAYS YES I AM AN ARTIST ART SEEMS TO HELP ALLAY THE TERRIBLE FEARS OF ELDERLY RESIDENTS GRACE GUNNARSSON AN 85YEAROLD ALZHEIMER'S PATIENT IS TORMENTED BY THE COMMON DELUSION THAT HER CHILDREN ARE SMALL ALONE AND IN NEED OF HER WATCHING CHILDREN PLAY FROM A WINDOW AT THE MERIDIAN HOME IN DUNDALK MD WHERE SHE LIVES GRACE WILL SAY THOSE AREN'T MINE BUT I KNOW THEY'RE OUT THERE THE OBSESSION SEEMS TO RECEDE WHEN MRS GUNNARSSON PAINTS ACCORDING TO BARBARA FLEMING A RECREATION THERAPIST AT THE RESIDENCE WHEN SHE'S WITH THE ARTISTS SHE IS AN INTELLIGENT FUNCTIONAL WOMAN SHE SAYS MRS GUNNARSSON WHO WORKED FOR FORMER VICE PRESIDENT SPIRO AGNEW WHEN HE WAS A MARYLAND POLITICIAN SOMETIMES JOKES THAT SHE IS GRANDMA MOSES HER WORK IS REPRESENTATIONAL USUALLY SCENES OF HER CHILDHOOD ON A FARM WHILE PAINTING A LILAC BUSH SHE IDENTIFIED BY NAME ITS VARIOUS BOTANICAL PARTS POINTING TO HER FRAMED WORK SHE SAYS I DID THAT GRACE THAT'S ME WHEN MULTIMEDIA ARTIST CATHY LEAYCRAFT FIRST VENTURED INTO A NURSING HOME SHE SAYS I WAS HORRIFIED THINKING WHY WOULD THEY WANT TO BE ALIVE BUT AFTER A WHILE I SAW THEY WEREN'T REALLY READY TO DIE YET THERE WERE STILL THINGS GOING ON SPIRITUAL KINDS OF THINGS THE GENESIS OF MS WATTS'S PROJECT IS A STORY IN ITSELF SHE WAS PLAYING GIGS ON EMBASSY ROW IN WASHINGTON LAUNCHING AN ALTERNATIVE GALLERY AND VOLUNTEERING IN A BALTIMORE NURSING HOME WHEN IN 1988 SHE MET JOHN ENGLEHART THEN 81 HE HAD BEEN INSTITUTIONALIZED SINCE 1918 WHEN HE WAS 11 DIAGNOSED RETARDED AND SCHIZOPHRENIC HEAVILY DOSED WITH THORAZINE HE HAD NOT BEEN HEARD TO SPEAK IN 15 YEARS HE WAS THIS HORRIFYING GNOMISH CREATURE SHE RECALLS HE FASCINATED ME ON ONE OF HER DAILY VISITS MS WATTS SLIPPED MR ENGLEHART PAPER AND A FELT MARKER HE PRODUCED AN INTRICATE DRAWING OF A WINDMILL AND CROAKED OUT THE FIRST REAL WORD HE HAD BEEN HEARD TO SPEAK WINDMILL SCORES OF PAUL KLEELIKE DRAWINGS AND PAINTINGS FOLLOWED SPEECH TOO BEGAN TO TUMBLE OUT BY THE TIME HE DIED A FEW MONTHS SHY OF HIS 85TH BIRTHDAY MR ENGLEHART HAD ESTABLISHED HIMSELF AS A RECOGNIZED ARTIST SELLING A NUMBER OF HIS WORKS AT A ONEMAN SHOW IN BALTIMORE THAT WAS CRITICALLY ACCLAIMED HE GOT A THREECOLUMN OBITUARY IN THE BALTIMORE SUN THOUGH MR ENGLEHART'S AWAKENING WAS EXCEPTIONAL MS WATTS SAYS ALL HER AGED STUDENTS HAVE BEEN PASSIONATE ALL THEIR WORK DISTINCTIVE MS WATTS WHO SAYS WORKING WITH THE ELDERLY HAS HELPED HER BECOME LESS SELFCONSCIOUS IN HER OWN MUSIC NOW PLANS TO BRING IN ART STUDENTS AS WELL AS PROFESSIONALS NONETHELESS SHE IS SKEPTICAL ABOUT THE PACE OF CHANGE IN INSTITUTIONS IT'S SCARY FOR ALL OF US SHE SAYS TO THINK OF A FUTURE IN A LONELY PLACE WHERE WE AREN'T GIVEN THE OPPORTUNITY TO DO OUR WORK AND WHERE NO ONE WANTS TO HEAR WHAT WE HAVE TO SAY BEFORE WE DIE 9401130066 940113 HEARD ON THE STREET SPRINT IS BELIEVED SET TO FIND ALLY OR SELL STAKE IN A BID TO STRENGTHEN ITS COMPETITIVE POSITION BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL GET READY FOR SPRINT TO COME OUT SLUGGING WITH NEW FINANCIAL MUSCLE IN THE DARWINIAN FIGHT FOR SURVIVAL AMONG TELECOMMUNICATIONS COMPANIES ACCORDING TO THE BUZZ ON WALL STREET SPRINT HAS DECIDED THAT IF IT CAN'T BEAT THE COMPETITION IT SHOULD JOIN 'EM SO THE SPECULATION GOES THE COMPANY IS ABOUT TO ALLY ITSELF WITH A PARTNER OR SELL OFF A CHUNK OF ITS STOCK TO SHORE UP ITS BALANCE SHEET AND MAKE IT A STRONGER COMPETITOR IN THE BREWING BATTLE YESTERDAY THE STOCK CLOSED AT 34 3/4 UP 1/2 ON VOLUME OF MORE THAN 13 MILLION SHARES OR MORE THAN TWICE THE AVERAGE DAILY VOLUME A SPRINT SPOKESMAN DECLINES TO COMMENT ABOUT THE POSSIBILITY OF EITHER A STOCK SALE OR A PENDING PARTNERSHIP BUT THAT HASN'T STOPPED INVESTORS FROM SINGLING OUT FAVORITE CANDIDATES FOR A SPRINT ALLIANCE BLAKE BATH AN ANALYST AT SANFORD C BERNSTEIN & CO NAMED UNISOURCE A CONSORTIUM OF SPANISH SWISS DUTCH AND SWEDISH PHONE COMPANIES AS HIS CHOICE IN COMMENTS TO CLIENTS YESTERDAY MR BATH ALSO UPGRADED SPRINT'S STOCK TO OUTPERFORM IN PART BECAUSE HE BELIEVES SUCH A PARTNERSHIP AGREEMENT WILL BE ANNOUNCED SOON HE SAID AN ANNOUNCEMENT COULD COME BEFORE FEB 16 WHEN THE COMPANY HAS SCHEDULED A MEETING WITH ANALYSTS MR BATH SAYS HIS RECENT DISCUSSIONS WITH SPRINT MANAGEMENT IMPLIED THAT ISSUES REGARDING SPRINT'S LIMITED INTERNATIONAL PARTNERSHIPS AND LIMITED FINANCIAL FLEXIBILITY COULD BE ADDRESSED SHORTLY CONCEIVABLY PRIOR TO SPRINT'S ANALYST MEETING FEB 16 THE FIRST SUCH MEETING IN SEVERAL YEARS SPRINT'S 60 DEBTTOCAPITAL RATIO IS CONSIDERED A PARTICULAR HANDICAP IN FACING COMPETITORS ON THE INFORMATION SUPERHIGHWAY SPRINT PRESIDENT RON LEMAY INDICATED THAT INTERNATIONAL AGREEMENTS WOULD BE AMONG THE COMPANY'S TOP FEW PRIORITIES AND ACKNOWLEDGED THE NEED FOR ADDITIONAL FINANCIAL BACKING TO PURSUE WIRELESS ACCESS AND INTERNATIONAL OPPORTUNITIES MR BATH SAID IN COMMENTS TO CLIENTS YESTERDAY OTHER INVESTORS NAMED MOTOROLA AND ITALIAN PHONE COMPANY STET AS POSSIBLE INVESTORS OR PARTNERS FOR SPRINT BASED ON RECENT SIMILAR DEALS BETWEEN US LONGDISTANCE COMPANIES INCLUDING BRITISH TELECOMMUNICATIONS' INVESTMENT IN MCI SUCH A LINKUP COULD BOOST SPRINT'S STOCK SOME ANALYSTS FIGURE A STAKE IN SPRINT COULD GO FOR AROUND 40 A SHARE A NEARLY 30 PREMIUM TO YESTERDAY'S CLOSING PRICE IMPLYING THE STOCK MAY BE A BARGAIN SPRINT HAS LONG BEEN VIEWED AMONG INVESTORS AS AN ALSORAN IN THE LONGDISTANCE BUSINESS NO ONE HAS GIVEN THEM CREDIT FOR DOING ANYTHING RIGHT SAYS PAUL RISSMAN AN ANALYST AT ALLIANCE CAPITAL MANAGEMENT AS A RESULT SPRINT'S STOCK PRICE HAS TRADED AT A MULTIPLE BELOW THOSE OF AT&T AND MCI SPRINT HAS SUFFERED FROM A BIG IMAGE PROBLEM AMONG INVESTORS SINCE IT ANNOUNCED ITS MERGER WITH CENTEL IN 1991 AT THE BEGINNING OF 1993 IT LOOKED LIKE SPRINT'S RESULTS WERE FINALLY IMPROVING BUT IN THE THIRD QUARTER REVENUE GROWTH SLOWED AND THE STOCK TOOK ANOTHER FALL BUT SPRINT HAS LOOKED PARTICULARLY LEFT OUT IN RECENT MONTHS AS RIVALS' STRATEGIES DOMINATED THE HEADLINES AT&T MADE NEWS WITH ITS PLANNED 126 BILLION MERGER WITH MCCAW TELECOMMUNICATIONS NOT TO MENTION NUMEROUS DEALS IT SIGNED WITH OVERSEAS TELECOMMUNICATIONS CONCERNS MEANWHILE MCI TRUMPETED ITS NEW CAPITAL INFUSION FROM BRITISH TELECOMMUNICATIONS BOTH TRANSACTIONS ARE AIMED AT MAKING THE LONGDISTANCE COMPANIES MORE COMPETITIVE AS REGULATORS HAVE ALLOWED NEW RIVALS INTO THE TELECOMMUNICATIONS BUSINESSES THE BIGGEST CLOUD OVER SPRINT'S STOCK HAS BEEN THE COMPANY'S INABILITY TO GAIN MARKET SHARE AT THE SAME RATE AS MCI WHILE SPRINT'S SHARE OF THE US LONGDISTANCE TELEPHONE MARKET HAS EDGED UP ABOUT 1/4 PERCENTAGE POINT A YEAR MCI HAS BEEN EXPANDING ITS SHARE AT AN ANNUAL RATE OF 1/2 TO 1 PERCENTAGE POINT SAYS MR RISSMAN HOOKING UP WITH A NEW PARTNER COULD MAKE SPRINT'S LACKLUSTER PERFORMANCE IRRELEVANT TO INVESTORS IF THERE IS A STRATEGIC PARTNER IT COULD CHANGE INVESTORS' VIEW ESPECIALLY IF THAT PARTNER IS WILLING TO PAY A GOOD PREMIUM FOR A SPRINT STAKE SAYS JOHN WEBER A TELECOMMUNICATIONS ANALYST AT PUTNAM INVESTMENT MANAGEMENT WHO IS RECOMMENDING SPRINT TO PORTFOLIO MANAGERS AT PUTNAM AND EVEN WITHOUT A DEAL SPRINT'S STOCK HAS OTHER FACTORS GOING FOR IT INVESTORS SAY THE COMPANY'S LONGDISTANCE BUSINESS IS DOING BETTER THAN EXPECTED MR BATH SAYS AND PROFIT MARGINS ARE IMPROVING TOO PARTLY BECAUSE AT&T HAS RAISED PRICES HE SAYS IF AS WE EXPECT SPRINT FOLLOWS AT&T'S MOST RECENT PRICE INCREASE RESULTS COULD BE PARTICULARLY STRONG IN THE FIRST HALF OF 1994 HE SAYS MR RISSMAN ESTIMATES THAT EVERY PERCENTAGEPOINT INCREASE IN SPRINT'S OPERATING MARGIN WOULD INCREASE EARNINGS 3 TO 4 A YEAR MEANWHILE AS CHRONIC COLLECT CALLERS ALREADY KNOW SPRINT LIKE ITS RIVALS IS SAVING MONEY BY USING AUTOMATED VOICE ACTIVATED SYSTEMS TO REPLACE HUMAN OPERATORS FOR COLLECT CALLS RATHER THAN TELLING AN OPERATOR THEIR NAMES CALLERS NOW SPEAK INTO A VOICEACTIVATED SYSTEM AND THE PEOPLE BEING CALLED PRESS A NUMBER ON THEIR TOUCH TONE PHONES TO ACCEPT THE CHARGES AN ANNOYING CHANGE TO CUSTOMERS PERHAPS BUT SUCH STEPS ARE SWEET BEEPS TO INVESTORS' EARS 9401130065 940113 INTERNATIONAL BRIEF NATIONAL WESTMINSTER BANK PLC ABOUT 46 OF WORK FORCE OR 4200 JOBS WILL BE CUT NATIONAL WESTMINSTER BANK PLC BECAME THE SECOND UK RETAIL BANK THIS WEEK TO ANNOUNCE SWEEPING JOB CUTS WITH REDUCTIONS EXPECTED TO TOTAL ABOUT 4200 OR 46 OF ITS WORK FORCE THIS YEAR NATWEST BASED IN LONDON HAS AROUND 2700 BRANCHES MORE THAN ANY OF ITS RIVALS THE BANK HAS CUT 15000 JOBS SINCE 1990 BRINGING ITS CURRENT WORK FORCE TO ABOUT 92600 WORLDWIDE SOME 3000 POSITIONS WERE ELIMINATED LAST YEAR IN BRITAIN ON MONDAY BARCLAYS BANK SAID IT WOULD REDUCE ITS STAFF BY 3000 OVER THE NEXT TWO YEARS THE CUTS CAME ON TOP OF REDUCTIONS OF 18000 POSITIONS OVER A FIVEYEAR PERIOD THAT BEGAN IN 1991 9401130064 940113 BUSINESS BRIEF FANNIE MAE NET ROSE 16 IN 4TH PERIOD ON STRONG PORTFOLIO GROWTH THE FEDERAL NATIONAL MORTGAGE ASSOCIATION KNOWN AS FANNIE MAE SAID FOURTHQUARTER NET INCOME CLIMBED 16 TO 4936 MILLION OR 180 A SHARE ON STRONG GROWTH IN ITS MORTGAGE PORTFOLIO THAT COMPARES WITH NET INCOME OF 4264 MILLION OR 155 A SHARE A YEAR EARLIER THE GOVERNMENTSPONSORED CONCERN WHICH IS BASED IN WASHINGTON SAID ITS NET INTEREST INCOME ON THE LOANS IT KEEPS FOR INVESTMENT GREW 17 TO 6353 MILLION FROM 5442 MILLION A YEAR EARLIER THE LATEST QUARTER INCLUDED A 388 MILLION CHARGE FOR THE REPURCHASE OF DEBT FOR THE YEAR NET INCOME ROSE 15 TO 187 BILLION OR 682 A SHARE FROM 162 BILLION OR 591 A SHARE 9401130063 940113 MARKETING & MEDIA CONDE NAST PICKS STEVEN FLORIO CHIEF OF THE NEW YORKER TO BE ITS PRESIDENT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONDE NAST PUBLICATIONS INC NAMED AS PRESIDENT STEVEN T FLORIO WHO IS CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW YORKER WHILE MOST OF THE 14 MAGAZINES IN THE CONDE NAST STABLE ARE SAID TO BE QUITE SUCCESSFUL MANY OF THE SENIOR MANAGERS ARE LONGTERM VETERANS APPROACHING RETIREMENT AGE MR FLORIO 44 YEARS OLD WILL BE SUCCEEDING BERNARD H LESER 68 WHO HAS BEEN ASSOCIATED WITH CONDE NAST SINCE 1959 WHEN HE FOUNDED THE AUSTRALIAN EDITION OF VOGUE ANOTHER TOP EXECUTIVE ALEXANDER LIBERMAN REMAINS EDITORIAL DIRECTOR OF CONDE NAST AT AGE 80 MR FLORIO WILL TAKE OVER AS PRESIDENT JUNE 1 AT WHICH TIME MR LESER WILL BECOME CHAIRMAN OF PACIFIC OPERATIONS FOR CONDE NAST A NEW POST MR LESER WILL MOVE TO SYNDEY AUSTRALIA AND OVERSEE EXPANSION OF THE MAGAZINE GROUP THROUGHOUT THE PACIFIC THE COMPANY'S OVERSEAS EDITIONS HAVE MOSTLY BEEN EUROPEAN ONES TWO YEARS AGO MR LESER ARRANGED FOR A LICENSEE IN JAPAN TO PUBLISH CONDE NAST'S MEN'S MAGAZINE GQ WHICH HAS BEEN VERY SUCCESSFUL CONDE NAST IS A UNIT OF ADVANCE PUBLICATIONS INC THE NEWHOUSE FAMILY'S PRIVATE PUBLISHING EMPIRE SI SI NEWHOUSE JR CHAIRMAN OF CONDE NAST SAID MR FLORIO HAS DONE A BRILLIANT JOB DURING HIS NINE YEARS AT THE NEW YORKER BUT DIDN'T PROVIDE DETAILS OF WHAT HE EXPECTS FROM HIM AS PRESIDENT THIS IS A VERY SMOOTH RUNNING COMPANY MR NEWHOUSE SAID I WANT STEVE TO SURPRISE ME THROUGHOUT THE INDUSTRY THE EXPECTATION IS THAT MR FLORIO WILL SHAKE THINGS UP AT CONDE NAST THAT MAY INCLUDE A SHUFFLING OF PUBLISHERS AND A BRANCHING OUT INTO SOME NEW BUSINESSES ALEXANDRA PENNEY EDITOR OF CONDE NAST'S SELF MAGZINE SAID THIS IS THE BEGINNING OF A NEW WORLD ORDER HERE SI NEWHOUSE SAYS HE FELT IT WAS TIME FOR THE YOUNGER GENERATION MAGAZINE CONSULTANT MARTIN WALKER SAID I THINK STEVE FLORIO WILL MAKE A MUCH MORE AGGRESSIVE PRESIDENT AND A MORE VOCAL INDUSTRY SPOKESMAN THAN MR LESER I THINK CONDE NAST IS THE ONLY MAGAZINE GROUP THAT DOESN'T DISCOUNT THEIR AD RATES BUT THE BUSINESS SIDE IS GETTING TOUGHER FOR EVERYBODY MR FLORIO A STYLISH HYPERBOLIC SIXFOOTER WHO HAS WORKED AT CONDE NAST FOR 15 YEARS SAYS HE'S ECSTATIC ABOUT THE APPOINTMENT TO USE A SPORTS ANALOGY THIS IS LIKE RUNNING THE YANKEES WHEN THEY REALLY WERE THE YANKEES HE SAID AN ARDENT FAN OF HIS PORTABLE POWERBOOK COMPUTER MR FLORIO SAID HIS PLANS INCLUDE TAKING THE COMPANY INTO CUTTINGEDGE TECHNOLOGY I THINK THIS COMPANY HAS FABULOUS CONTENT AND WE CAN DOMINATE THE INFORMATION HIGHWAY AMONG HIS OTHER PRIORITIES HELPING CONDE NAST MAGAZINES THAT HAVE ADVERTISING OR POSITIONING PROBLEMS INCREASING THE PROFITS AND PRESENCE OF CONDE NAST'S LITTLEKNOWN SPORTS DIVISION STREET AND SMITH MAGAZINES AND ADDING LINE EXTENSIONS SUCH AS THE HALLMARK GREETING CARDS HE LICENSED BASED ON NEW YORKER CARTOONS ALTHOUGH THE EDITORIAL CHANGES OF TINA BROWN ARE GIVEN MORE CREDIT THAN MR FLORIO'S EFFORTS AD PAGES AT THE NEW YORKER ROSE ABOUT 125 IN 1993 TO 2253 PAGES CONDE NAST SAID IT WILL NAME MR FLORIO'S BROTHER THOMAS A FLORIO 38 CURRENTLY THE PUBLISHER OF CONDE NAST TRAVELER TO THE POST OF PUBLISHER OF THE NEW YORKER HE WON'T ASSUME HIS BROTHER'S TITLES OF PRESIDENT AND CHIEF EXECUTIVE OFFICER THE CURRENT PUBLISHER OF THE NEW YORKER IS LYNN HEILER WHOSE FUTURE JOB HASN'T BEEN SETTLED THE COMPANY SAID 9401130062 940113 BARNEY & FRIENDS PUBLIC TV PREPARES FOR IMAGE TRANSPLANT TO JUSTIFY EXISTENCE EDUCATIONAL PROGRAMMING TECHNOLOGY MARKETING MAY HELP PAY ITS WAY SURVIVAL IN THE CABLE AGE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PUBLIC TELEVISION HAS BEEN VERY VERY GOOD TO LARRY LANCIT AND CECILY TRUETT ON THE STRENGTH OF PRODUCING ONE ACCLAIMED PUBLIC BROADCASTING SERVICE CHILDREN'S SERIES READING RAINBOW PLUS PBS'S COMMITMENT TO BROADCAST ANOTHER NEXT YEAR THE HUSBANDANDWIFE TEAM TOOK THEIR COMPANY LANCIT MEDIA PRODUCTIONS LTD PUBLIC LANCIT CURRENTLY VALUED AT 80 MILLION AND ITS COPRODUCER PUBLIC STATION KCETTV IN LOS ANGELES ALREADY HAVE SIGNED A 31 MILLION DEAL WITH SONY CORP AND A 15 MILLION DEAL WITH FISHERPRICE INC TO MARKET MERCHANDISE SPINOFFS FROM THEIR NEW CHILDREN'S SHOW THE PUZZLEWORKS MEANWHILE THE CONDUIT FOR ALL THIS COMMERCIAL SUCCESS THE PUBLIC TELEVISION SYSTEM LIMPS ALONG ON THE SHABBYGENTEEL PRESTIGE OF AN INSTITUTION UNTAINTED BY PROFITS BUT DEPENDENT ON THE KINDNESS OF STRANGERS TO GET ALONG SOME PEOPLE CALL PUBLIC TV ELITIST SOME SEE IT CONTROLLED BY LIBERALS OTHERS BY CONSERVATIVES AND BIG BUSINESS STILL OTHERS SEE IT AS A WASTEFUL USE OF 275 MILLION IN TAXPAYERS' MONEY IN A WORLD OF PROLIFERATING CABLE CHANNELS IN FISCAL 1991 THE CORPORATION FOR PUBLIC BROADCASTING REAPED 317000 IN PRODUCTLICENSING FEES FOR ITS ENTIRE LINEUP OF SHOWS THAT INCLUDES SUCH MERCHANDISING BLOCKBUSTERS AS SHINING TIME STATION HOME OF THOMAS THE TANK ENGINE THAT AMOUNT A RECORD FOR CPB BUT A PITTANCE IN THE WORLD OF PRODUCT LICENSING WAS THE RESULT OF POORLY DESIGNED CONTRACTS INTENDED TO AVOID ANY HINT OF PROFITMAKING THIS IS THE DILEMMA THAT STYMIES PUBLIC TELEVISION NEVER MORE SO THAN TODAY PUBLIC TELEVISION IS SUPPOSED TO PROVIDE NONCOMMERCIAL ALTERNATIVE PROGRAMMING YET BE SELFSUSTAINING BUT DOES THE PURSUIT OF SHOWS THAT ATTRACT SUBSCRIBER DOLLARS KEEP LESS BANKABLE SHOWS OFF THE AIR MEANWHILE WHEN A PROGRAM LIKE BARNEY & FRIENDS PROVES WILDLY POPULAR WHAT BUREAUCRATIC QUAGMIRE OR MISGUIDED SENSE OF MISSION KEEPS PUBLIC TV FROM CASHING IN ON THE RESULTING SOLIDGOLD FRANCHISE SUCH QUESTIONS PERCOLATE FROM THE LOFTY CORRIDORS OF THE CPB TO THE LOWLIEST SMALLTOWN PUBLIC TVSTATION MANAGER'S DESK AS A TELECOMMUNICATIONS REVOLUTION SWIRLS AROUND IT PUBLIC TELEVISION IS GROPING TO JUSTIFY ITS EXISTENCE TO A RISING CHORUS OF CRITICS SHORE UP ITS FUNDING BASE RECAPTURE DEFECTING VIEWERS AND FIND A SUITABLE ROLE FOR ITSELF IN THE FASTAPPROACHING MULTICHANNEL TV FUTURE WE HAVE TO GET READY SO WE'RE NOT LEFT IN THE DUST SAYS ROBERT OTTENHOFF PBS'S CHIEF OPERATING OFFICER IN ONE SIGN OF TUMULTUOUS CHANGES AFOOT SIX OF THE EIGHT TOP OFFICERS OF THE CPB ARE NEW THIS YEAR AMONG THOSE REPLACED WAS THE EXECUTIVE WHO NEGOTIATED CPB'S CUT OF PRODUCTLICENSING DEALS AT AN UNPRECEDENTED DECEMBER MEETING THAT BROUGHT TOGETHER ADMINISTRATORS OF THE SYSTEM'S TRIAD THE CPB ITS PBS PROGRAMMING ARM AND THE 351 LOCAL STATIONS THERE WAS DARK TALK OF CUTTING DOWN AS MANY AS A THIRD OF THE STATIONS BY FORCING MERGERS RIGHT NOW MANY CITIES HAVE SEVERAL PUBLIC STATIONS COMPETING FOR OVERLAPPING AUDIENCES AND SPONSORS AND COME FEB 1 A NEW LEADER TAKES CHARGE AT PBS ERVIN DUGGAN WHO IS STEPPING DOWN AS A MEMBER OF THE FEDERAL COMMUNICATIONS COMMISSION AND HAS VOWED TO REBUILD THE CASE FOR PUBLIC BROADCASTING ULTIMATELY THAT MAY BE ACCOMPLISHED BY RETURNING PUBLIC TV TO ITS EDUCATIONAL ROOTS WITH A BIG BOOST FROM TECHNOLOGY IF TELECOURSES ARE MORE PROSAIC THAN BIG BIRD AND MASTERPIECE THEATRE THEY ARE INCREASINGLY WHERE THE MONEY IS STATE GOVERNMENTS ARE SCRAMBLING TO BUILD DISTANCELEARNING NETWORKS TO BRING INSTRUCTION AND INTERACTIVE DATA TO SCHOOLS AND BUSINESSES AND PUBLIC TV STATIONS ARE LINCHPINS OF THESE NEW MULTIMEDIA NETWORKS WHILE CONGRESS HAS BEEN UNWILLING TO SPRING FOR UNRESTRICTED PBS PROGRAMMING BUDGETS IT HAS BEEN RECEPTIVE TO THE SYSTEM'S NEW EDUCATIONAL PRIORITIES IT CAME UP WITH A SPECIAL 150 MILLION ALLOCATION FOR PBS'S JUSTLAUNCHED TELSTAR 401 SATELLITE WHICH WILL CARRY THE NEW READY TO LEARN CHANNEL OF INSTRUCTIONAL PROGRAMMING FOR PRESCHOOLERS THOUGH PBS HAS LURCHED FROM MONEY CRUNCH TO MONEY CRUNCH FOR MOST OF ITS 25YEAR HISTORY IT NOW FACES A FUNDAMENTAL CHANGE IN ITS CONSTITUENCY OF PATRONS ONE THAT IS ALREADY ALTERING WHAT GOES ON THE AIR OF PUBLIC TV'S TOTAL 139 BILLION BUDGET IN FISCAL 1992 CONGRESS'S SHARE HAS DROPPED TO SLIGHTLY OVER 13 FROM NEARLY 20 IN 1980 THE PORTION PROVIDED BY STATE GOVERNMENTS HAS DIPPED EVEN MORE SHARPLY TO 16 FROM ALMOST 25 IN 1980 THUS THERE IS GROWING PRESSURE ON SUBSCRIBERS AND CORPORATIONS TO TAKE UP THE SLACK TOGETHER THEY NOW ACCOUNT FOR ABOUT 38 OF PUBLIC TV'S BUDGET UP FROM 23 UNIVERSITIES AND FOUNDATIONS ACCOUNT FOR THE REST YET PRIMETIME VIEWERSHIP HAS SLUMPED 18 IN THE PAST SIX YEARS AND SUBSCRIBER CONTRIBUTIONS ROSE ONLY MODESTLY IN FISCAL 1992 THE LATEST FIGURES AVAILABLE CORPORATE FUNDING WAS OFF 3 AND PBS SAYS THAT IN FISCAL 1993 SUPPORT FROM BUSINESS FOR NATIONAL PROGRAMMING NOSEDIVED 134 AND INSIDERS EXPECT FURTHER DECLINES THIS YEAR WE ARE JUST NOT GETTING THE KIND OF RESPONSE WE NEED FROM THE RECESSIONBATTERED BUSINESS WORLD SAYS RICHARD CARLSON PRESIDENT AND CHIEF EXECUTIVE OF CPB BUT AL VECCHIONE EXECUTIVE PRODUCER OF THE MACNEIL/LEHRER NEWSHOUR AND A 22YEAR VETERAN OF PUBLIC TELEVISION BLAMES UNDERWRITER DEFECTIONS ON PBS'S STRINGENT GUIDELINES GOVERNING THE NATURE AND LENGTH OF CORPORATE MESSAGES EVEN THOUGH THOSE GUIDELINES HAVE BEEN LOOSENED IN RECENT YEARS COMPANIES CAN BROADCAST A FULLLENGTH COMMERCIAL ON CABLE TV AND REACH THE SAME SIZE AUDIENCE AS ON SAY NOVA HE ARGUES I DO NOT SUPPORT THE IDEA OF COMMERCIALS ON PUBLIC TELEVISION HE SAYS BUT THE GUIDELINES OUGHT TO BE LIBERALIZED AND STANDARDIZED MACNEIL/LEHRER RECENTLY LOST A MAJOR UNDERWRITER WHEN PEPSICO INC ANNOUNCED IT WOULD PULL OUT IN JUNE NEW YORK LIFE INSURANCE CO AND ARCHERDANIELSMIDLAND CO WILL STEP INTO THE BREACH GIVING A TOTAL OF 55 MILLION OVER FIVE YEARS BUT MR VECCHIONE SAYS HE HASN'T RAISED A SINGLE DOLLAR IN TWO YEARS FROM CORPORATE SPONSORS FOR THE PUBLICAFFAIRS SPECIALS THAT HIS COMPANY ALSO PRODUCES UNLESS THE SYSTEM'S FUNDING TROUBLES CAN BE RESOLVED IT WILL BE A COMMERCIAL MEDIUM IN THE NEXT CENTURY WARNS BRUCE CHRISTENSEN WHO SERVED AS PBS'S PRESIDENT FROM 1984 UNTIL LAST SUMMER MANY SUGGEST IT IS TILTING PERILOUSLY CLOSE TO THAT NOW THE RAPID TRANSFORMATION OF THE TV INDUSTRY ALREADY HAS BEGUN TO ROB PUBLIC TV OF ITS DISTINCTIVE VOICE CABLE NETWORKS LIKE DISCOVERY AND ARTS & ENTERTAINMENT STILL DON'T REACH ALL TELEVISION VIEWERS BUT THEY ROUTINELY OFFER CABLE SUBSCRIBERS THE SORT OF CULTURAL FARE AND DOCUMENTARIES THAT ONCE WERE THE SOLE PROVINCE OF PBS CABLE'S BRAVO CHANNEL EVEN OFFERS ADVERTISERS UNDERWRITING OPPORTUNITIES MEANWHILE PUBLIC TV IS ASSIDUOUSLY COURTING SUBSCRIBERS AND BUSINESS WHICH PURISTS DECRY AS EQUIVALENT TO CHASING BIG RATINGS FOR EXAMPLE THIS SEASON'S PRIMETIME PBS LINEUP INCLUDES A FAILED THOUGH CRITICALLY ACCLAIMED NETWORK DRAMA SERIES I'LL FLY AWAY AND PBS IS DEVELOPING SCRIPTS FOR A POTENTIAL COMEDY SERIES PRODUCED BY FORMER NBC ENTERTAINMENT PRESIDENT BRANDON TARTIKOFF SITCOMS WILL BE OUR DEATH KNELL SAYS WILLIAM BAKER PRESIDENT OF WNETTV IN NEW YORK TOO MANY PEOPLE IN PUBLIC TELEVISION THINK OF THEMSELVES AS HIGHEND COMMERCIAL BROADCASTERS IF YOU TREAT IT LIKE COMMERCIAL TELEVISION YOU'RE DOOMED AT THE INDIVIDUAL STATION LEVEL THE CLASH BETWEEN THE SYSTEM'S MISSION AND THE MARKETPLACE IS EVEN MORE VIVID EACH STATION GETS A PORTION OF ITS FUNDS LESS THAN 20 ON AVERAGE FROM THE CPB A PRIVATE NONPROFIT ENTITY THAT ADMINISTERS CONGRESS'S ANNUAL ALLOCATION WHICH AMOUNTS TO 275 MILLION IN FISCAL 1994 AFTER FUNNELING SOME OF THE MONEY BACK TO PBS FOR ITS NATIONALPROGRAMMING SERVICE THE STATIONS ARE ON THEIR OWN TO FUND THE REMAINDER OF THEIR BUDGETS IN RECENT YEARS SOME HAVE HAD TO SLASH EXPENSES DRASTICALLY WHILE OTHERS HAVE TRIED A MORE ENTREPRENEURIAL APPROACH SEATTLE'S KCTSTV AND DETROIT'S WTVSTV FORMED A JOINT VENTURE IN LONDON THAT SEEKS OUT EUROPEAN PARTNERS OFTEN COMMERCIAL BROADCASTERS WITH WHOM THEY COPRODUCE SHOWS THUS HALVING THEIR OWN COSTS A NUMBER OF STATIONS HAVE CUT DEALS WITH A FRANCHISE KNOWN AS LEARNINGSMITH WHICH SELLS PARAPHERNALIA RELATED TO PUBLIC TV PROGRAMS SUCH AS BOOKS AND VIDEOTAPES BUT RETURNS LESS THAN 5 OF SALES TO THE STATIONS OTHERS LEASE OUT THEIR PRODUCTION FACILITIES TO COMMERCIAL BROADCASTERS CHICAGO'S WTTW DERIVES NEARLY A QUARTER OF ITS REVENUES FROM SUCH DEALS BUT THE FUNDGRUBBING ALSO HAS LED STATIONS TO STRETCH PBS GUIDELINES DESIGNED TO KEEP SPONSORS DISCREETLY IN THE BACKGROUND AND PROGRAMS COMMERCIALFREE OVER TWO WEEKS LAST OCTOBER CHICAGO'S WTTW PRESENTED 40 HOURS OF PRODUCT PITCHES IN A HOMESHOPPING SHOW THAT FEATURED SUCH ITEMS AS BRONZE STATUES SWEAT SHIRTS AND JEWELRY CRITICS WERE AGHAST THAT HOME SHOPPING WAS CROWDING OUT REGULAR PROGRAMMING BUT VIEWERS REGISTERED VERY FEW NEGATIVE RESPONSES ACCORDING TO A STATION OFFICIAL NORM ABRAMS THE HOST OF THE NEW YANKEE WORKSHOP A PBS HOMEWOODWORKING SHOW PRODUCED BY BOSTON'S WGBH PUTTERS ON CAMERA WITH TOOLS MADE BY ONE OF THE SHOW'S UNDERWRITERS DELTA INTERNATIONAL MACHINERY CORP THE BRAND NAMES ARE COVERED UP BUT A PRESS KIT FOR THE SHOW NOTES THAT IT'S NOT UNUSUAL FOR DISTRIBUTORS TO RECEIVE PHONE CALLS FROM VIEWERS INQUIRING ABOUT DELTA TOOLS THEY'VE SEEN NORM USE ON THE SHOW LAST YEAR PBS DISTRIBUTED A GLOWING DOCUMENTARY ON JOURNALIST JAMES RESTON THE SHOW WAS PRODUCED BY THE SCRANTON PA PUBLIC TV STATION IN ASSOCIATION WITH THE NEW YORK TIMES MR RESTON'S EMPLOYER FOR 42 YEARS UNTIL HIS RETIREMENT IN 1987 ITS PRODUCER AND DIRECTOR SUSAN W DRYFOOS IS A MEMBER OF THE SULZBERGER FAMILY THAT RUNS THE NEWSPAPER MR DUGGAN PBS'S INCOMING PRESIDENT VIEWS SUCH COMMERCIALISM AS A FUNCTION OF PBS'S PENURY BROUGHT ON HE SAYS BY 12 YEARS OF TIGHTFISTED REPUBLICAN ADMINISTRATIONS IN WASHINGTON HE LIKENS THE SYSTEM TO A NEWLY WIDOWED WOMAN FORCED TO TAKE IN LAUNDRY TO MAKE ENDS MEET SOME OF THAT PENNYPINCHING STEMMED FROM REPUBLICAN COMPLAINTS THAT PUBLIC TELEVISION IS A POORLY DISGUISED MOUTHPIECE FOR LIBERAL CAUSES OTHERS HAVE COUNTERED THAT BIG BUSINESS AND THUS CONSERVATIVE THINKING CONTROLS PUBLIC TV'S UNDERWRITING PURSE STRINGS WHILE PBS CRIES POVERTY MANY OF ITS PROGRAM SUPPLIERS HAVE GOTTEN RICH THROUGH PUBLIC TELEVISION EXPOSURE BARNEY MERCHANDISE EVERYTHING FROM LUNCH BOXES TO UNDERWEAR GENERATES SEVERAL HUNDRED MILLION DOLLARS IN RETAIL SALES ANNUALLY ANALYSTS ESTIMATE A CUT GOES BACK TO THE PRIVATE LYONS GROUP WHICH PRODUCES THE SHOW BUT ALMOST NOTHING GOES TO THE CPB WHICH TOGETHER WITH PBS HAS CONTRIBUTED MORE THAN 25 MILLION TO PRODUCE EPISODES FEATURING THE PURPLE DINOSAUR AND BARNEY PRODUCERS CAN COUNT ON MORE PUBLIC MONEY FOR NEW EPISODES BECAUSE ANY CPB LICENSING EARNINGS MUST BE PLOWED BACK INTO NEW PRODUCTION THE TERMS OF THE DEAL HAVE OUTRAGED LAWMAKERS WHO CONTROL THE CONGRESSIONAL ALLOCATION FOR PUBLIC TELEVISION SIMILARLY PBS CONTINUES TO SUBSIDIZE SESAME STREET WHICH EARNS MILLIONS ON ITS TOYS AND CLOTHING LINES WITH 6 MILLION ANNUALLY LANCIT MEDIA'S NEW SERIES THE PUZZLEWORKS IS PBS'S FIRST MAJOR UNDERTAKING FOR PRESCHOOLERS SINCE SESAME STREET MADE ITS DEBUT 25 YEARS AGO SO FAR LANCIT AND KCETTV IN LOS ANGELES HAVE LINED UP 8 MILLION IN OUTSIDE FINANCING INCLUDING A 45 MILLION GRANT FROM CPB ITS LARGEST EVERTOWARD THE FIRST YEAR'S PRODUCTION BUDGET CPB'S DEAL WITH LANCIT IS ITS STANDARD CPB PUT UP SEED MONEY EQUAL TO ABOUT 38 OF THE SHOW'S FIRSTYEAR BUDGET IN TURN IT WILL RECEIVE AND RETURN TO LANCIT AND KCET FOR NEW PRODUCTION 19 OF THE NET ANCILLARY REVENUES FROM MERCHANDISING AFTER DEDUCTING COSTS OF MARKETING PROMOTION AND DISTRIBUTION AMONG OTHERS MR CHRISTENSEN ARGUES THAT BECAUSE PUBLIC TELEVISION WON'T PROVIDE TOTAL FUNDING FOR SHOWS IT HAS TO OFFER INCENTIVES TO ATTRACT ENTREPRENEURIAL PRODUCERS YOU CAN'T HAVE IT BOTH WAYS HE SAYS ADDS PBS'S MR OTTENHOFF FOR EVERY BARNEY' THERE ARE 20 TO 30 OTHER PROGRAMS THAT ARE UNDERFUNDED NEVERTHELESS BOTH CPB AND PBS OFFICIALS SAY THAT ALL LICENSING POLICIES ARE UNDER REVIEW WE DON'T HAVE TO GET IN THE PROFITMAKING BUSINESS SAYS A CPB EXECUTIVE BUT WE SHOULD GET MORE BACK TO USE TO GENERATE NEW SHOWS THE NATIONALPROGRAM SCHEDULE IS JUST PART OF THE BUSINESS OF PUBLIC TELEVISION THE REST OF ITS MANDATE IS THE LESS VISIBLE EDUCATIONAL SIDE WHICH PBS ALSO OVERSEES AFTER YEARS OF TAKING A BACK SEAT TO NATIONAL PROGRAMMING INSTRUCTIONAL TV IS NOW WHERE THE ACTION IS A GLIMPSE OF PUBLIC TELEVISION'S FUTURE CAN BE SEEN TODAY IN SOUTH CAROLINA WHERE PUBLIC TV'S ELECTRONIC CLASSROOMS REACH INTO EVERY SCHOOL PRISON AND COUNTY BUILDING AND IN UTAH SALT LAKE CITY'S KUEDTV IS PART OF A STATEWIDE CONSORTIUM THAT IS DEVELOPING AN INTERACTIVE VIDEO AUDIO AND DATA SYSTEM THAT BRINGS SCIENCE CLASSES TO HIGHSCHOOL STUDENTS ON A NAVAJO RESERVATION AND MEDICAL TRAINING TO RURAL DOCTORS CONSORTIUM MEMBERS INCLUDE UTAH'S COLLEGES THE STATE OFFICE OF EDUCATION AND PRIVATE INDUSTRY THE GROUP ALSO WORKS CLOSELY WITH PHONE COMPANY U S WEST AND CABLE COMPANY TELECOMMUNICATIONS INC WE'VE GOT TO PROVE OUR WORTH SAYS FRED ESPLIN KUED'S GENERAL MANAGER IF WE'RE TRULY MEETING NEEDS THEN THE MONEY WILL BE THERE MR DUGGAN THE INCOMING PBS PRESIDENT SAYS THAT WHILE HE WILL BE OUT RATTLING THE TIN CUP PUBLIC TELEVISION ALSO MUST LEARN TO DO MORE WITH IMAGINATION AND ORIGINALITY RATHER THAN FOCUS ON THE FUNDING CRUNCH HE PREFERS TO EMPHASIZE WHAT HE CALLS UNHAPPY TRENDS IN COMMERCIAL BROADCASTING THAT MAKE PUBLIC TV INCREASINGLY NECESSARY THE FEEDING FRENZY TO SEE WHO CAN BE THE MOST EXPLOITIVE IN NEWS CHILDREN'S AND ENTERTAINMENT SERIES PROGRAMMING HE ALSO EXPECTS TO MAKE THE CASE THAT THE NEW INFORMATION SUPERHIGHWAY SHOULD BE BUILT AROUND THE PUBLIC TELEVISION INFRASTRUCTURE ALREADY IN PLACE A LOT OF GOOD MARRIAGES COME WHEN YOU MARRY THE GIRL OR BOY NEXT DOOR AND IN THIS CASE THAT'S PUBLIC TELEVISION HE SAYS 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 9401130061 940113 TECHNOLOGY MICROSOFT JOINS TCI PACIFIC GAS IN A TEST OF INFORMATION SERVICE SAN FRANCISCO MICROSOFT CORP SAID IT AGREED WITH PACIFIC GAS & ELECTRIC CO AND TELECOMMUNICATIONS INC TO TEST THE USE OF CABLE TELEVISION SYSTEMS TO DELIVER ENERGYINFORMATION SERVICES TO HOMES UNDER THE AGREEMENT CONSUMERS PARTICIPATING IN THE TEST WOULD BE SUPPLIED WITH TWOWAY COMMUNICATIONS TRADE INFORMATION WITH PACIFIC GAS & ELECTRIC USING TELEVISION SETS HOOKED INTO TCI'S CABLETV SYSTEM MICROSOFT REDMOND WASH SAID IT WILL WRITE THE OPERATINGSYSTEM SOFTWARE USED IN THE SERVICE TCI IS BASED IN ENGLEWOOD COLO THE COMPANIES WILL TEST THE SERVICE IN ABOUT 2000 HOMES IN WALNUT CREEK CALIF AND OTHER PLACES IN THE STATE THIS YEAR CONSUMERS USING THE SERVICE COULD FOR INSTANCE USE IT TO GET AN UPTOTHEMINUTE LOOK AT HOW MUCH GAS AND ELECTRICITY THEY ARE USING AND WHAT IT IS COSTING THEM PACIFIC GAS & ELECTRIC SAID IN A NEWS RELEASE CUSTOMERS COULD ALSO PAY ENERGY BILLS THROUGH THE SYSTEM AND THE UTILITY COULD USE THE NETWORK TO QUICKLY PINPOINT POWER OUTAGES THE TEST COMES AS MANY INDUSTRIES ARE LOOKING FOR SERVICES THAT MIGHT TAKE ADVANTAGE OF AN INFORMATION SUPERHIGHWAY UTILITIES HAVE BEEN PARTICULARLY INTERESTED IN THE POTENTIAL OF CABLE AND PHONE LINES TO ALLOW THEM TO DO SUCH TASKS READING CUSTOMERS' ELECTRIC AND GAS METERS FROM AFAR 9401130060 940113 STOCK MARKET VOLUME IS SURGING TO RECORD LEVELS BY STEVEN E LEVINGSTON AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL FOR TRADERS AT JJC SPECIALIST CORP GOING OUT FOR LUNCH IS JUST A MEMORY THESE DAYS BUSINESS IS SO BRISK ON THE NEW YORK STOCK EXCHANGE THAT MANY SPECIALISTS ON THE FLOOR STICK CLOSE TO THEIR POSTS AT LUNCH TIME IT'S BECOMING HIGHLY UNFASHIONABLE TO GO OUT FOR LUNCH NOW SAYS CHRISTOPHER QUICK PRESIDENT OF JJC SPECIALIST A SUBSIDIARY OF QUICK & REILLY GROUP THERE ARE NO MORE LULLS IN THE BUSINESS IT'S JUST BUSY ALL DAY LONG INDEED TRADING IN SHARES ON THE BIG BOARD IS SIZZLING LAST WEEK VOLUME WAS THE SECOND HIGHEST IN EXCHANGE HISTORY SECOND ONLY TO THE WEEK OF THE OCTOBER 1987 CRASH AND VOLUME ON THE NEW YORK STOCK EXCHANGE HAS SURPASSED 300 MILLION SHARES EVERY DAY THIS WEEK LIFE HAS BEEN BUSY ON THE NASDAQ STOCK MARKET AND AMERICAN STOCK EXCHANGE TOO AVERAGE DAILY VOLUME THIS YEAR ON NASDAQ IS RUNNING AT 317 MILLION SHARES UP FROM ABOUT 264 MILLION SHARES LAST YEAR AT THE AMEX DAILY TRADING VOLUME IS AVERAGING 195 MILLION SHARES UP FROM 181 MILLION SHARES IN PART THE HEAVY TRADING RESULTS FROM A SEASONAL SURGE THAT TAKES PLACE IN EARLY JANUARY WHEN MANY MANAGERS OF LARGE PENSION AND MUTUAL FUNDS REENTER THE MARKET AFTER CLOSING OUT THEIR POSITIONS NEAR YEAR END MANY INDIVIDUALS ALSO MAKE THEIR 1994 INVESTMENT DECISIONS AT THIS TIME AND SOME OF THESE INVESTORS ARE HANDSOMELY ENDOWED WITH CASH FROM YEAREND BONUSES RECORD LEVELS OF COMPUTERGUIDED PROGRAM TRADING ARE CONTRIBUTING AS WELL BUT THE JUMP THIS YEAR GOES BEYOND MERE SEASONAL FACTORS WITH EVER GREATER NUMBERS OF HOUSEHOLD INVESTORS PARTICIPATING IN THE STOCK MARKET AND AN EXPANSION OF DERIVATIVE TRADING PRODUCTS VOLUME HAS BEEN ON A STEADY UPSWING FOR YEARS AVERAGE DAILY TRADING VOLUME ON THE BIG BOARD LAST YEAR HIT A RECORD 2645 MILLION SHARES UP DRASTICALLY FROM THE AVERAGE 2023 MILLION THE YEAR BEFORE IN 1984 THE AVERAGE DAILY VOLUME WAS 912 MILLION SHARES THIS SURGE IS THE CONTINUATION OF THE HEAVY VOLUME WE HAD LAST YEAR SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS WHO KNOWS MAYBE 300 MILLION SHARES A DAY WILL BECOME NORMAL INSTEAD OF 200 MILLION ANALYSTS CAREFULLY WATCH THE RELATIONSHIP BETWEEN TRADING VOLUME AND SHAREPRICE MOVEMENT FOR INDICATIONS OF THE STOCK MARKET'S HEALTH FOR INSTANCE FEW ANALYSTS WELCOME RISING VOLUME UNLESS IT'S ACCOMPANIED BY RISING PRICES SO FAR THE LEAP IN VOLUME HASN'T RAISED ANY WARNING FLAGS SAYS AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF HE ARGUES THAT CURRENT HEAVY VOLUME IS MOSTLY MAKING UP FOR SEVERAL WEEKS OF SLOWER TRADING NEAR THE END OF THE YEAR HE ADDS THAT STOCK PRICES HAVE BEEN ADVANCING FOR THE MOST PART DURING THIS PERIOD OF INCREASED TRADING IF THIS TYPE OF VOLUME CONTINUES FOR TWO TO THREE MORE WEEKS WITHOUT A COMMENSURATE MOVE UP IN PRICES THAT WOULD BE A CLASSIC BEARISH SIGNAL MR MOORE SAYS ANOTHER KEY CONSIDERATION IS THE AMOUNT OF MONEY IT TAKES TO MOVE PRICES IN EITHER DIRECTION SAYS LASZLO BIRINYI OF FINANCIAL SERVICES FIRM BIRINYI ASSOCIATES A PICKUP IN VOLUME THAT FAILS TO DRIVE PRICES UP OR DOWN WOULD RAISE CONCERN BUT THE SHARP ADVANCES AND DECLINES IN RECENT DAYS AMID HEAVY TRADING SUGGESTS THAT VOLUME IS PUSHING PRICES AS IT SHOULD WHAT WE'RE SEEING IS THAT THE AMOUNT OF MONEY IT TAKES TO MOVE THE MARKET IS ABOUT THE SAME AS WE'VE ALWAYS SEEN IT'S IN LINE WITH HISTORICAL NUMBERS MR BIRINYI SAYS SWELLING VOLUME IN ITSELF CAN BE INTERPRETED AS BULLISH FOR THE STOCK MARKET CONTENDS BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M KIMELMAN & CO MARKET TECHNICIANS HAVE A THESIS THAT VOLUME LEADS STOCK PRICES SHE SAYS SO THE FACT THAT VOLUME IS IMPROVING IS A POSITIVE SIGN MS MURPHY ADDS THAT ALONG WITH RISING VOLUME SHE'D LIKE TO SEE MORE STOCKS MOVING TO NEW HIGHS AND A GREATER NUMBER OF ADVANCING ISSUES EACH DAY COMPARED WITH DECLINERS SHE'D BEGIN TO WORRY IF VOLUME CONTINUES RISING WITHOUT FURTHER IMPROVEMENT IN SOME OF THOSE OTHER TECHNICAL MEASURES WHILE MS MURPHY DOESN'T RULE OUT A DOWNTURN OF 2 TO 3 AFTER THE MARKET'S HEALTHY ADVANCE IN RECENT WEEKS IF VOLUME KEEPS AT THIS RAMBUNCTIOUS LEVEL LATE INTO THE QUARTER THEN I'D BE CONCERNED ABOUT A POSSIBLE BIGGER CORRECTION THE TRADING FLOOR OF THE STOCK EXCHANGE ISN'T THE ONLY PLACE TO WITNESS THE RECENT RUSH TO BUY AND SELL SHARES PHONES ARE RINGING MADLY AT MUTUAL FUND COMPANIES TOO AT BOSTONBASED FIDELITY INVESTMENTS NEAL LITVACK EXECUTIVE VICE PRESIDENT SAID THIS MONTH MAY TURN OUT TO BE THE COMPANY'S BEST EVER SURPASSING AUGUST 1993 WHEN 21 BILLION FLOWED INTO FIDELITY'S STOCK AND BOND FUNDS THE DOW JONES INDUSTRIAL AVERAGE THAT MONTH ROSE TO RECORD LEVELS THOUGH CASH FLOWS INTO FIDELITY'S FUNDS GENERALLY PICK UP IN JANUARY MR LITVACK SUGGESTS THAT THIS WON'T BE A ONEMONTH UPTREND INQUIRIES ABOUT FIDELITY FUNDS ARE AT RECORD LEVELS SUGGESTING THAT MORE NEW MONEY WILL FLOW INTO THE GIANT MUTUAL FUND COMPANY IN FEBRUARY AND MARCH WHAT'S MORE MANY INVESTORS ARE TRANSFERRING THEIR RETIREMENT ASSETS FROM FULLSERVICE BROKERS AND BANKS TO FIDELITY ABOUT 50 OF THE RETIREMENT TRANSFER ASSETS ARE COMING OUT OF BANKS SUGGESTING THAT THERE IS STILL NEW MONEY FLOWING INTO STOCKS OF COURSE LOTS OF TRADING DOESN'T HURT THE COMMISSION EARNINGS AT BROKERAGE HOUSES EITHER THEY'RE MAKING MONEY OFF ALL THE TRADING SAYS JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER BUT MR HANBURY POINTS OUT THAT BECAUSE COMMISSIONS ACCOUNT FOR ONLY ABOUT 19 OF EXCHANGE MEMBER FIRMS' REVENUES IT'S IMPORTANT NOT TO OVERSTATE THE IMPACT OF STRONGER VOLUME HE ADDS THAT DISCOUNT BROKERS BENEFIT MORE THAN OTHER FIRMS BECAUSE THEY DERIVE MORE OF THEIR REVENUES FROM COMMISSIONS BEYOND COMMISSION FEES HIGH VOLUME TRANSLATES INTO RISING LEVELS OF MARGIN DEBT THAT BOOSTS THE BROKERAGE COMPANIES' INTEREST INCOME MR HANBURY SAYS THERE ARE ANCILLARY BENEFITS HE SAYS BUT IT ISN'T A STRAIGHT LINE FROM VOLUME TO BROKERS' PROFITS SEE RELATED ARTICLE AND PROGRAM TRADING STILL PLAYS KEY ROLE DESPITE EASING OF CONTROVERSY WSJ JAN 13 1994 9401130059 940113 PARAMOUNT REJECTS OFFER FROM VIACOM BOARD GIVES ONLY A WARNING IN RESPONSE TO CHARGE OF BIDDING VIOLATION BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL DIRECTORS OF PARAMOUNT COMMUNICATIONS INC REJECTED A REVISED 93 BILLION TAKEOVER BID BY VIACOM INC AND STUCK TO THEIR EARLIER ENDORSEMENT OF A HIGHER 99 BILLION OFFER BY QVC NETWORK INC THE BOARD EMPHASIZED THAT FINAL BIDS IN THE LONGRUNNING TAKEOVER FIGHT MUST BE MADE BY FEB 1 UNDER THE BIDDING RULES SET BY PARAMOUNT BUT THE DIRECTORS OF THE ENTERTAINMENT AND PUBLISHING GIANT TOOK ONLY THE MILDEST OF ACTIONS IN RESPONSE TO A QVC DEMAND THAT VIACOM BE DECLARED TO HAVE BREACHED THE BIDDING RULES BY MAKING A NEW OFFER LAST FRIDAY WITHOUT INCREASING THE OVERALL VALUE OF ITS BID THE NEW OFFER FORCED A TWOWEEK EXTENSION OF THE BIDDING WAR THE BOARD'S REJECTION OF VIACOM'S NEW OFFER WAS EXPECTED AND TRADERS SAID IT WOULD HAVE LITTLE IMPACT ON THE FOURMONTHOLD TAKEOVER FIGHT PARAMOUNT'S BOARD HAVING BEEN REBUKED BY TWO DELAWARE COURTS FOR IMPROPERLY FAVORING FRIENDLY BIDDER VIACOM INITIALLY NOW HAS ADOPTED A DETERMINEDLY HANDSOFF APPROACH TO MANAGING THE BIDDING CONTEST IN ITS LATEST OFFER VIACOM BOOSTED THE CASH PART OF ITS BID TO 105 A SHARE FOR 501 OF PARAMOUNT STOCK FROM 85 A SHARE FOR 51 BUT VIACOM ALSO REDUCED THE AMOUNT OF STOCK BEING OFFERED FOR THE REMAINDER OF PARAMOUNT SHARES LEAVING THE TOTAL MARKET VALUE OF ITS OFFER VIRTUALLY UNCHANGED IN WHAT ONE TRADER CALLED MILD FINGERWAGGING PARAMOUNT CHAIRMAN MARTIN DAVIS SAID FUTURE BIDS WILL CONTINUE TO BE RIGOROUSLY REVIEWED WITH REGARD TO THEIR COMPLIANCE WITH THE BIDDING PROCEDURES IN A STATEMENT THE BOARD NOTED THAT VIACOM'S OFFER CONTAINED MORE CASH THAN QVC'S OFFER OF 92 A SHARE IN CASH FOR 501 OF PARAMOUNT BUT THAT QVC'S PACKAGE REPRESENTS THE BEST VALUE AVAILABLE TO PARAMOUNT STOCKHOLDERS THE BOARD APPARENTLY FELT IT COULDN'T GO ANY FURTHER IN CRITICIZING VIACOM A CABLETELEVISION COMPANY FOR RESTRUCTURING ITS OFFER WITH MORE THAN 11 BILLION IN ADDITIONAL CASH AS VIACOM LAWYER STEVEN VOLK NOTED THE PARAMOUNT BOARD IN ESTABLISHING THE BIDDING PROCEDURES EXPRESSED A PREFERENCE FOR CASH IN A LETTER TO PARAMOUNT DIRECTORS DATED TUESDAY QVC LAWYER MARTIN LIPTON HAD URGED THE BOARD TO DECLARE THAT QVC A HOMESHOPPING COMPANY SHOULDN'T HAVE TO EXTEND ITS CURRENT OFFER BEYOND JAN 21 THE NEXT DEADLINE FOR THE CURRENT BIDS IN RESPONSE TO A NEW VIACOM OFFER THE BIDDING PROCEDURES AGREED TO BY BOTH VIACOM AND QVC SET FEB 1 AS THE LAST DEADLINE BECAUSE THE BIDS WHICH MUST REMAIN OPEN FOR 10 BUSINESS DAYS CAN'T BE EXTENDED BEYOND FEB 14 HOWEVER TRADERS NOTE THAT THE PROCEDURES SEEM TO HAVE ENCOURAGED BOTH SIDES TO DELAY THEIR BEST BIDS UNTIL THE LAST MINUTE AND SOME SAY THAT EVEN AFTER THE SCHEDULED TIMETABLE EXPIRES AND A WINNER HAS BEEN DECLARED THE BOARD MIGHT BE HARDPRESSED TO DROP ITS ANTITAKEOVER DEFENSES FOR THE WINNER IF THE LOSING BIDDER QUICKLY COMES BACK WITH A SUBSTANTIALLY HIGHER OFFER 9401130058 940113 CONAGRA TO DROP APPEAL IN DISPUTE OVER POPCORN BAGS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL CONAGRA INC THE NATION'S LARGEST PRODUCER OF MICROWAVE POPCORN IS REFUNDING SEVERAL MILLION DOLLARS IN ROYALTY FEES TO COMPETITORS AFTER LOSING A CONTENTIOUS BATTLE OVER PATENTS FOR THE POPCORN BAG THE OMAHA NEBBASED COMPANY CONFIRMED YESTERDAY THAT IT HAS DECIDED TO ABANDON FURTHER APPEALS IN THE CASE IN WHICH A FEDERAL APPEALS COURT IN WASHINGTON THIS MONTH UPHELD A DISTRICT COURT RULING THAT A CONAGRA UNIT HAD OBTAINED PATENTS TO THE BAGS THROUGH A PATTERN OF FRAUDULENT BEHAVIOR THE JUDGE SAID CONAGRA'S GOLDEN VALLEY MICROWAVE FOODS INC UNIT HAD FILED FALSE AFFIDAVITS WITH THE US PATENT AND TRADEMARK OFFICE MISSTATED TEST RESULTS AND UNLAWFULLY CLAIMED ANOTHER'S INVENTION AS ITS OWN AS A RESULT BECAUSE EXISTING TECHNOLOGY WAS INVOLVED THE JUDGE HELD THAT BAGS HAVE NO PATENT PROTECTION THE BAG IN QUESTION HAS SINCE BECOME THE STANDARD IN AN INDUSTRY THAT SELLS AN ESTIMATED TWO BILLION PACKAGES OF MICROWAVABLE POPCORN ANNUALLY THE TECHNOLOGY AT ISSUE INVOLVES THE SUSCEPTOR STRIP INSIDE THE BAG THAT HEATS IT TO POPPING TEMPERATURE A TOTAL OF FIVE COMPANIES THAT CONAGRA WOULDN'T IDENTIFY WILL SHARE WHAT A CONAGRA ATTORNEY SAID IS BETWEEN 3 MILLION AND 4 MILLION IN ROYALTIES ACCUMULATED OVER THE YEARS AT A RATE OF A PENNY A BAG THE MONEY HAS BEEN IN ESCROW SINCE JULY 1992 WHEN THE DISTRICT COURT'S RULING CAME DOWN CONAGRA HAD ACQUIRED GOLDEN VALLEY THE PREVIOUS YEAR FOR NEARLY 500 MILLION IN STOCK IN PART TO TAP ITS POPCORN BAG ROYALTIES SECURITIES ANALYSTS SAID AT THE TIME GOLDEN VALLEY SELLS MICROWAVE POPCORN UNDER THE ACT II LABEL ANOTHER CONAGRA UNIT MAKES ORVILLE REDENBACHER POPCORN THE TOPSELLING BRAND THAT IN THE 52 WEEKS ENDED LAST DEC 5 HELD A 379 SHARE OF THE 512 MILLION BUSINESS ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE ALTHOUGH IT DECIDED AGAINST TAKING THE CASE TO THE US SUPREME COURT CONAGRA AGAIN DENOUNCED THE ORIGINAL COURT RULING AS HAVING A CHILLING EFFECT ON THE AMERICAN INVENTIVE PROCESS THE COMPANY SAID THE RULING SERVES TO DISCOURAGE ENTREPRENEURS FROM USING THE PATENT PROCESS TO PROTECT THE FRUITS OF THEIR INNOVATIONS AND PUTS AMERICAN COMPANIES AT A COMPETITIVE DISADVANTAGE TO OTHERS WHO COPY THEIR INVENTIONS THERE IS AN ADDED STING TO THE CASE IN THAT A SENIOR CONAGRA EXECUTIVE WAS AMONG THOSE AT GOLDEN VALLEY WHO HAD CLAIMED THE BAG INVENTION AS HIS OWN THE MAN JAMES D WATKINS WHO HAD FOUNDED GOLDEN VALLEY NOW OVERSEES CONAGRA DIVERSIFIED PRODUCTS COS WHICH INCLUDES EDINA MINNBASED GOLDEN VALLEY AND IS A MEMBER OF CONAGRA'S OFFICE OF THE PRESIDENT WE CONTINUE TO INNOVATE AND HAVE TWO PENDING PATENT APPLICATIONS IN THE MICROWAVABLE POPCORN BAG AREA SAID RICHARD J MOEN A CONAGRA ATTORNEY RICHARD D HARRIS A CHICAGO ATTORNEY FOR ONE DEFENDANT IN THE CASE WEAVER POPCORN CO OF VAN BUREN IND SAID HIS CLIENT WAS VERY GRATIFIED THAT THE ORIGINAL COURT DECISION WAS UPHELD UNDER TERMS OF THE CASE NEITHER WEAVER NOR CODEFENDANT AMERICAN PACKAGING CORP PHILADELPHIA WAS REQUIRED TO PAY BAG ROYALTIES TO GOLDEN VALLEY 9401130057 940113 BUSINESS BRIEF NATIONAL INTERGROUP INC SALE OF NATIONAL STEEL SHARES CONTINUES DIVESTITURE PLAN NATIONAL INTERGROUP INC SAID IT SOLD NEARLY 34 MILLION SHARES OF NATIONAL STEEL CORP FOR 428 MILLION IN A SERIES OF PRIVATELY NEGOTIATED TRANSACTIONS A NATIONAL INTERGROUP SPOKESMAN SAID THE DALLAS HOLDING COMPANY HAS PLANNED FOR SOME TIME TO DIVEST ITSELF OF THE LAST VESTIGES OF ITS ORIGINAL BUSINESS BY SELLING THE 11 STAKE IN NATIONAL STEEL WHICH IS NOW OWNED BY JAPAN'S NKK CORP NATIONAL INTERGROUP IS LEFT WITH JUST 70000 COMMON AND 10000 PREFERRED SHARES IN THE STEEL MAKER THE SPOKESMAN SAID HE SAID THAT THE COMPANY WILL PUT 10 MILLION OF THE PROCEEDS INTO ESCROW TO COVER A POTENTIAL ENVIRONMENTAL LIABILITY THE COMPANY HASN'T SAID WHAT IT WILL DO WITH THE REST OF THE PROCEEDS HE ADDED 9401130056 940113 BUSINESS BRIEF TRIARC COS COURT APPROVES SETTLEMENT INVOLVING UTILITY ACQUISITION TRIARC COS SAID A FEDERAL COURT APPROVED A PROPOSED SETTLEMENT WHICH CALLS FOR TRIARC TO ACQUIRE THE 29 STAKE OF SOUTHEASTERN PUBLIC SERVICE CO THAT IT DOESN'T ALREADY OWN IN A STOCK TRANSACTION VALUED AT ABOUT 68 MILLION TRIARC BASED IN NEW YORK SAID THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA APPROVED A PROPOSED SETTLEMENT BETWEEN SOUTHEASTERN SHAREHOLDERS AND TRIARC FORMERLY DWG CORP WHICH IMPLEMENTS THE ACQUISITION SOUTHEASTERN SHAREHOLDERS WILL RECEIVE 08 TRIARC SHARES FOR EACH SHARE OF THE UTILITY THEY OWN OR A TOTAL OF 27 MILLION SHARES THE SETTLEMENT STILL REQUIRES APPROVAL BY HOLDERS OF AT LEAST TWOTHIRDS OF THE OUTSTANDING SOUTHEASTERN SHARES NOT OWNED BY TRIARC TRIARC IS A HOLDING COMPANY THAT OWNS ARBY'S INC ROYAL CROWN COLA CO GRANITEVILLE CO AND NATIONAL PROPANE CORP SOUTHEASTERN IS A MIAMIBASED UTILITIES SERVICES COMPANY 9401130055 940113 SMALL STOCK FOCUS RUSSELL 2000 INDEX EKES OUT A RECORD IN A SESSION OF GIVEANDTAKE TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SCATTERED STRENGTH LIFTED SMALLCOMPANY STOCKS TO NEW RECORDS IN A TOPSYTURVY SESSION IT LOOKED PRETTY MUCH LIKE A TUG OF WAR BETWEEN BUYERS AND SELLERS SAID JIM THOMAS VICE PRESIDENT OF EQUITY TRADING AT DAVENPORT & CO I DIDN'T SEE ANYONE REAL AGGRESSIVE HERE BUT SMALLER STOCKS REMAINED SO CLOSE TO THEIR RECORDS THAT ONLY A SLIGHT SHOVE WAS NEEDED TO TAKE THEM PAST PREVIOUS ALLTIME HIGHS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES GAINED 06 POINT OR 023 TO CLOSE AT 26023 SQUEAKING PAST ITS OLD RECORD OF 26017 SET NOV 2 1993 THE NASDAQ COMPOSITE INDEX SURPASSED ITS RECORD IN THE MORNING BUT GAVE WAY TO SOME LIGHT PROFITTAKING AND WAS UNABLE TO MAINTAIN A GRIP ON RECORD TERRITORY THE INDEX EDGED UP 135 POINTS OR 017 TO END AT 78687 ABOUT HALF A POINT SHORT OF ITS ALLTIME HIGH BOTH THE RUSSELL AND THE NASDAQ COMPOSITE FLIRTED WITH THEIR RECORDS ALL DAY NASDAQ NATIONAL MARKET VOLUME STOOD AT 2733 MILLION SHARES UP FROM TUESDAY'S 2721 MILLION OVERALL ACTIVITY WAS 3225 MILLION SHARES DOWN SLIGHTLY FROM THE PREVIOUS DAY'S 3219 MILLION ADVANCERS NARROWLY BEAT NASDAQ DECLINERS 1570 TO 1499 TECHNOLOGY STOCKS WERE MIXED BUT COMPUTERCHIP MAKERS STOOD OUT AS BIG GAINERS FOLLOWING A STRONG BOOKTOBILL RATIO REPORT LATE TUESDAY THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE DECEMBER INDEX ROSE TO 104 FROM NOVEMBER'S 099 THE NEWS BOOSTED LEADING CHIP MAKER INTEL 1 5/8 HIGHER TO 68 3/8 SOME SMALLER SEMICONDUCTOR ISSUES ALSO BENEFITED NOVELLUS SYSTEMS SAN JOSE CALIF GAINED 2 1/8 TO 37 5/8 CYPRESS SEMICONDUCTOR ALSO BASED IN SAN JOSE ROSE 1/4 TO 14 3/4 ON THE NEW YORK STOCK EXCHANGE AND LATTICE SEMICONDUCTOR HILLSBORO ORE ROSE 1/2 TO 16 1/2 SCIENTIFIC SOFTWAREINTERCOMP ALSO ROSE TO 5 15/16 UP 1 1/16 THE DENVERBASED COMPANY RECEIVED A CONTRACT FROM GENERAL MOTORS' HUGHES AIRCRAFT OF CANADA SUBSIDIARY TO PROVIDE ITS SAMMI GRAPHIC USER INTERFACE AS PART OF HUGHES' CANADIAN AUTOMATED AIR TRAFFIC SYSTEM SCIENTIFIC SOFTWAREINTERCOMP ESTIMATED THE CONTRACT WILL ADD 800000 TO ITS 19931994 REVENUE SOME TECH STOCKS HOWEVER HAD A TOUGH SESSION TRICORD SYSTEMS A PLYMOUTH MINN MAKER OF NETWORK SUPERSERVERS FELL 3 1/2 TO 19 3/4 PARALLAN COMPUTER A MOUNTAIN VIEW CALIF NETWORKING CONCERN FELL 1 TO 13 1/8 AND QUANTUM A MILPITAS CALIF DISKDRIVE MAKER FELL 3/8 TO 16 3/8 AMONG HEALTHCARE ISSUES SUMMIT TECHNOLOGY A WALTHAM MASS DESIGNER OF MEDICAL EQUIPMENT ROSE 3 TO 26 THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION GRANTED AN EXPANSION OF ITS CLINICAL TRIAL OF PHOTOREFRACTIVE KERATECTOMY AN OUTPATIENT PROCEDURE DESIGNED TO CORRECT COMMON EYE DISORDERS QUIDEL ROSE 7/8 TO 5 7/8 THE SAN DIEGO DEVELOPER OF MEDICAL DIAGNOSTIC TESTS ROSE AFTER CNBC FINANCIAL CORRESPONDENT DAN DORFMAN CITED A SAN FRANCISCO MONEY MANAGER'S BULLISH VIEW ON THE COMPANY THE REPORT SAID WILL WEINSTEIN WHO HEADS GENESIS MERCHANT GROUP SEES QUIDEL STOCK RISING TO 10 IN 12 MONTHS ALSO CHEMTRAK INC SUNNYVALE CALIF ROSE 1 TO 7 5/8 THE COMPANY SAID AFTER TUESDAY'S CLOSE THAT IT HAS SIGNED A LICENSE AND SUPPLY AGREEMENT WITH ORTHO PHARMACEUTICAL CORP A JOHNSON & JOHNSON SUBSIDIARY TO MARKET CHEMTRAK'S HOME CHOLESTEROL TEST IN THE US CANADA AND MEXICO A DISAPPOINTING FISCAL FOURTHQUARTER EARNINGS OUTLOOK CAUSED LADD FURNITURE TO SLIDE 1 3/8 TO 10 1/8 THE HIGH POINT NC CONCERN SAID IT EXPECTS TO POST A MODEST LOSS ON SALES OF ABOUT 124 MILLION COMPARED WITH YEAREARLIER PERSHARE EARNINGS OF SIX CENTS ON SALES OF 129 MILLION IN OTHER ACTION ELSAG BAILEY PROCESS AUTOMATION A DUTCH DESIGNER OF SYSTEMS TO MONITOR PROCESS VARIABLES JUMPED 2 1/4 TO 24 1/2 ON THE BIG BOARD MERRILL LYNCH RAISED ITS NEARTERM INVESTMENT RATING TO BUY FROM ABOVE AVERAGE AND MAINTAINED ITS LONGTERM BUY RATING ALSO ON THE BIG BOARD OAK INDUSTRIES A WALTHAM MASS MAKER OF CONTROLS AND COMPONENTS FOR APPLIANCES ROSE 1 3/4 TO 17 1/2 DONALDSON LUFKIN & JENRETTE INITIATED COVERAGE OF THE STOCK WITH A VERY ATTRACTIVE RATING NASDAQ NATIONAL MARKET STOCKS HITTING NEW HIGHS FOR THE YEAR TO DATE TOTALED 107 WHILE 20 HIT NEW LOWS 9401130054 940113 BIPARTISAN PANEL CALLS FOR OVERHAUL OF HEAD START PROGRAM FOR PRESCHOOLERS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A BIPARTISAN FEDERAL ADVISORY COMMITTEE CALLED FOR AN OVERHAUL OF THE HEAD START PROGRAM FOR PRESCHOOL CHILDREN WITH MORE EMPHASIS ON QUALITY AND LESS ON QUANTITY IN AN 84PAGE REPORT EXPECTED TO SERVE AS A LEGISLATIVE BLUEPRINT FOR REFORMING THE GOVERNMENT'S HEALTH AND EDUCATION PROGRAM FOR LOWINCOME PRESCHOOL CHILDREN THE COMMITTEE SAID INCONSISTENT QUALITY AMONG THE VARIOUS HEAD START CENTERS IS ONE OF THE PROGRAM'S BIGGEST PROBLEMS MEASURES OUTLINED BY THE PANEL RANGE FROM ESTABLISHING MINIMUM PERFORMANCE STANDARDS TO RAISING TEACHER SALARIES TO REDUCING STAFF CASELOADS BEYOND FOCUSING ON QUALITY THE COMMITTEE ALSO SAID HEAD START SHOULD BE EXPANDED SEN EDWARD KENNEDY D MASS CHAIRMAN OF THE SENATE LABOR COMMITTEE SAID HE PLANNED TO INTRODUCE LEGISLATION INCORPORATING THE RECOMMENDATIONS WITHIN THE NEXT FEW MONTHS BUT DOUGLAS BESHAROV A MEMBER OF THE ADVISORY PANEL WARNED THAT IF JUST HALF OF THE RECOMMENDATIONS WERE ADOPTED THE COST OF HEAD START WOULD RISE TO 10000 PER CHILD EACH YEAR FROM ABOUT 4000 CURRENTLY IT MAKES HEAD START TOO EXPENSIVE EVEN FOR THIS ADMINISTRATION SAID MR BESHAROV A LAWYER AT THE AMERICAN ENTERPRISE INSTITUTE HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID HEAD START WILL RECEIVE A SUBSTANTIAL INVESTMENT IN THE ADMINISTRATION'S NEW BUDGET BUT SHE ADDED THERE WERE MANY WAYS TO IMPROVE QUALITY WITHOUT POURING MONEY INTO THE PROGRAM HEAD START WHICH NOW SERVES ABOUT 721000 CHILDREN WILL RECEIVE 33 BILLION IN FEDERAL MONEY THIS FISCAL YEAR EDWARD ZIGLER ONE OF HEAD START'S FOUNDERS AND A MEMBER OF THE ADVISORY COMMITTEE PRAISED THE PLAN AS A COMPLETE OVERHAUL THE FIRST ATTEMPT IN THE PROGRAM'S 29YEAR HISTORY TO TACKLE ITS REAL PROBLEMS THE REAGAN AND BUSH ADMINISTRATIONS HE SAID WERE MORE INTERESTED IN INCREASING THE NUMBER OF CHILDREN SERVED THAN IN DEALING WITH QUALITY CONTROL TO IMPROVE QUALITY THE COMMITTEE RECOMMENDED REDUCING CASELOADS FOR THE PROGRAM'S SOCIALSERVICE WORKERS TO 35 FAMILIES EACH SOME STAFFERS NOW HANDLE 100 FAMILIES EACH AND MR ZIGLER SAID HE KNEW OF WORKERS WHO HAD CASELOADS AS HIGH AS 500 THE COMMITTEE ALSO SUGGESTED USING FEDERAL MONEY TO BUY NEW CENTERS IN SOME CASES ONETHIRD OF THE CURRENT CENTERS ARE SO SUBSTANDARD THAT THEY NEED TO BE REPLACED OR EXTENSIVELY REMODELED ACCORDING TO A SURVEY BY THE NATIONAL HEAD START ASSOCIATION THE COMMITTEE SAID HEAD START ALSO SHOULD BE EXPANDED TO SERVE PRESCHOOLERS FOR FULL EIGHTHOUR DAYS AS WELL AS TODDLERS THE PROGRAM CURRENTLY SERVES MAINLY FOURYEAROLDS IN HALFDAY PROGRAMS GIVEN THE LARGE NUMBER OF WORKING PARENTS SUCH PROGRAMS NO LONGER MEET FAMILIES' NEEDS THE REPORT SAID BUT THE COMMITTEE STRESSED THE NEED TO DEVELOP A PLAN TO SERVE CHILDREN UNDER AGE THREE RESEARCH SUGGESTS THE FIRST THREE YEARS OF LIFE ARE SO CRITICAL THAT CHILDREN SHOULDN'T WAIT UNTIL AGE FOUR TO BEGIN HEAD START PROGRAMS 9401130053 940113 BUSINESS BRIEF QUALMED INC BOARD URGES COMPLETION OF NH MANAGEMENT MERGER THE BOARD OF QUALMED INC HAS RECOMMENDED THAT SHAREHOLDERS APPROVE THE COMPANY'S DELAYED 775 MILLION MERGER WITH THE OPERATOR OF A CALIFORNIA HEALTH MAINTENANCE ORGANIZATION THE PUEBLO COLO COMPANY POSTPONED A JAN 7 SPECIAL MEETING OF SHAREHOLDERS THAT WAS TO HAVE VOTED ON THE MERGER WITH CLOSELY HOLD HN MANAGEMENT HOLDING INC SO IT COULD STUDY THE IMPACT OF AN 89 MILLION COURT AWARD AGAINST THAT COMPANY'S HEALTH NET UNIT THE AWARD WAS GRANTED BY A CALIFORNIA JURY TO THE FAMILY OF A BREASTCANCER PATIENT WHO DIED AFTER HEALTH NET REFUSED TO PAY FOR AN EXPERIMENTAL BONEMARROW TRANSPLANT MALIK M HASAN QUALMED'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT WE BELIEVE HEALTH NET ACTED APPROPRIATELY AND IN A PRINCIPLED FASHION AFTER REVIEWING REPORTS A COMMITTEE OF QUALMED DIRECTORS RECOMMENDED THAT QUALMED COMPLETE THE MERGER THE BOARD VOTED UNANIMOUSLY TO ACCEPT THE RECOMMENDATION AND RESCHEDULED THE SPECIAL MEETING FOR JAN 25 9401130052 940113 BUSINESS BRIEF BETZ LABORATORIES INC CHARGE OF 121 MILLION SET AGAINST 4THPERIOD EARNINGS BETZ LABORATORIES INC SAID IT WILL TAKE A RESTRUCTURING CHARGE OF 121 MILLION OR 24 CENTS A SHARE AGAINST FOURTHQUARTER EARNINGS THE TREVOSE PA ENGINEERED PROGRAMS AND SPECIALTYCHEMICAL PRODUCTS COMPANY SAID THE CHARGE STEMS FROM MOVES TO REDUCE OPERATING COSTS OVER THE LONG TERM INCLUDING WORKFORCE CUTS SHEDDING UNPRODUCTIVE ASSETS AND REORGANIZATION NET INCOME IN 1992'S FOURTH QUARTER WAS 201 MILLION OR 67 CENTS A SHARE ON REVENUE OF 1726 MILLION R DALE VONCANON VICE PRESIDENT FINANCE SAID THE BULK OF THE SAVINGS WOULD COME THROUGH SALES OF UNDERUSED WAREHOUSE SPACE IN THE PHILADELPHIA AREA AND THROUGH CENTRALIZATION OF SOME ADMINISTRATIVE FUNCTIONS CURRENTLY DUPLICATED IN THE COMPANY'S UNITS BETZ DOESN'T PLAN TO CLOSE ANY PLANTS AND WORKFORCE REDUCTIONS WILL BE LESS THAN 5 OF THE COMPANY'S 4200 EMPLOYEES WORLDWIDE MR VONCANON SAID IN DECEMBER THE COMPANY SAID SALES AND EARNINGS FOR 1993 WOULD FALL SHORT OF 1992'S RESULTS LAST YEAR WAS THE FIRST TIME SINCE 1965 THAT THE COMPANY HAD A SALES DOWNTURN 9401130051 940113 BUSINESS BRIEF ALCO STANDARD CORP UNISOURCE WORLDWIDE UNIT SIGNS AGREEMENT WITH IBM ALCO STANDARD CORP'S UNISOURCE WORLDWIDE INC UNIT SAID IT SIGNED A CONTRACT VALUED AT MORE THAN 300 MILLION TO OUTSOURCE ITS DATA PROCESSING OPERATIONS TO AN INTERNATIONAL BUSINESS MACHINES CORP SUBSIDIARY UNDER THE 10YEAR AGREEMENT IBM'S INTEGRATED SYSTEMS SOLUTIONS CORP WILL PROVIDE HARDWARE AND SOFTWARE TO SERVICE UNISOURCE'S CORE DISTRIBUTION BUSINESS INCLUDING IMPROVING ITS NATIONAL ACCOUNTS SYSTEM AND AUTOMATING ITS WAREHOUSE SYSTEM ALL 123 OF UNISOURCE'S DATA PROCESSING EMPLOYEES WOULD BECOME EMPLOYEES OF INTEGRATED SYSTEMS SOLUTIONS BASED IN VALLEY FORGE PA UNISOURCE IS A DISTRIBUTOR OF PRINTING PAPER AND INDUSTRIAL PRODUCTS INTEGRATED SYSTEMS SOLUTIONS BASED IN WHITE PLAINS NY IS A PROVIDER OF INFORMATION SERVICES 9401130050 940113 BANK OF BOSTON FACING CHARGES OVER 1989 WOES SEC STAFF FILES COMPLAINT BANK DIDN'T DISCLOSE LENDING PROBLEMS FULLY BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE SECURITIES AND EXCHANGE COMMISSION'S STAFF ACCUSED BANK OF BOSTON CORP OF VIOLATING SECURITIES LAWS BY FAILING TO DISCLOSE FULLY THE DETERIORATION OF ITS LOAN PORTFOLIO IN 1989 THE SEC SAID ITS STAFF FILED A COMPLAINT WITH AN SEC ADMINISTRATIVE LAW JUDGE REQUESTING A HEARING TO DETERMINE WHETHER THE COMPANY SHOULD HAVE MADE ADDITIONAL DISCLOSURES IN SEC FILINGS REGARDING ESCALATING PROBLEMS IN ITS REALESTATE PORTFOLIO FOR 1989'S SECONDQUARTER AND YEAREND RESULTS THE SEC'S STAFF ALLEGED THAT THE BANK OF BOSTON KNEW BUT DIDN'T ADEQUATELY DISCLOSE IN FILINGS THAT A REVIEW BY THE OFFICE OF THE COMPTROLLER OF CURRENCY OF THE BANK'S DOMESTIC REALESTATE PORTFOLIO HAD CONFIRMED MAJOR PROBLEMS IN THE PORTFOLIO THAT RESULTED IN THE DOWNGRADING OF LOANS TOTALING ABOUT 11 BILLION THE BANK IN A STATEMENT SAID WE BELIEVE THAT WE REPORTED FULLY BASED ON THE INFORMATION AVAILABLE TO US AT THE TIME BANK OF BOSTON WAS THE FIRST MAJOR NEW ENGLAND BANK TO REPORT REALESTATE LOAN PROBLEMS IN OCTOBER 1989 WE ARE PROUD THAT OUR INDUSTRYLEADING QUICK ACTIONS IN DEALING WITH A DETERIORATING REALESTATE ENVIRONMENT LED TO US BEING THE FIRST MAJOR BANK TO PUT THESE PROBLEMS BEHIND US WE BELIEVE THAT THE SEC HAS HAD THE BENEFIT OF HINDSIGHT IN BRINGING THIS PROCEEDING AND THAT ULTIMATELY WE WILL PREVAIL THE BANK ADDED LIKE MANY NEW ENGLAND BANKS BANK OF BOSTON WAS HARD HIT BY REALESTATE PROBLEMS IN THE DEPRESSED REGIONAL ECONOMY IN 1989 RESULTING IN CONTINUED LOSSES THROUGH 1991 IN RECENT QUARTERS THE BANK HAS REPORTED IMPROVED RESULTS FOR 1993'S THIRD QUARTER BANK OF BOSTON HAD NET INCOME OF 414 MILLION OR 30 CENTS A SHARE AFTER AN 85 MILLION PRETAX RESTRUCTURING CHARGE ASSETS TOTALED 39 BILLION BANK OF BOSTON IS THE SECONDLARGEST BANK IN NEW ENGLAND THE SEC COMPLAINT WAS ANNOUNCED AFTER THE STOCK MARKET CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BANK OF BOSTON CLOSED AT 24125 UP 375 CENTS ON VOLUME OF 249400 SHARES THE SEC SAID THAT IF ITS STAFF'S ALLEGATIONS ARE PROVEN TRUE IT COULD TAKE REMEDIAL ACTION THAT PROBABLY WOULD INVOLVE A CEASEANDDESIST ORDER REQUIRING THE COMPANY TO MAKE ADEQUATE DISCLOSURES IN THE FUTURE GERARD S CASSIDY AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES SAID THAT SHAREHOLDER LAWSUITS PROBABLY WILL BE FILED IF THE JUDGE FINDS THAT BANK OF BOSTON DELIBERATELY HELD BACK DATA PROVING THAT HOWEVER WILL BE DIFFICULT BECAUSE THE BANK LIKE MANY OTHERS IN THE LATE 1980S HAD POOR MONITORING SYSTEMS IN PLACE FOR ITS LOAN PORTFOLIO HE ADDED IN 1987 AND 1988 BANKS WERE GROWING RAPIDLY MOST EXPENSES WERE SPENT ON GROWING PORTFOLIOS MINIMAL MONEY WAS SPENT ON MONITORING PORTFOLIOS MR CASSIDY SAID WITH CONDITIONS DETERIORATING SO RAPIDLY AND BANK OF BOSTON HAVING A WEAK MONITORING SYSTEM I'M NOT SURE THEY WILLFULLY DID IT THEY JUST DIDN'T KNOW FOR 1989'S SECOND QUARTER BANK OF BOSTON HAD NET INCOME OF 978 MILLION OR 134 A SHARE FOR ALL OF 1989 THE BANK HAD NET OF 704 MILLION OR 80 CENTS A SHARE AFTER A 147 MILLION PRETAX GAIN THE YEAREND RESULTS FOLLOWED A THIRDQUARTER LOSS OF 125 MILLION 9401130049 940113 MARKETING BRIEF REUTERS HOLDINGS PLC FINANCIAL TV SERVICE SET FOR FOREIGN EXCHANGE USE REUTERS HOLDINGS PLC SAID IT PLANS TO LAUNCH A FINANCIAL TELEVISION SERVICE FOR THE FOREIGN EXCHANGE MARKET AROUND THE MIDDLE OF THE YEAR MARK WOOD EDITOR IN CHIEF OF THE LONDONBASED MEDIA COMPANY TOLD EXECUTIVES AND ANALYSTS AT A PALM SPRINGS CALIF MEDIA CONFERENCE THAT THE SERVICE WOULD BE AVAILABLE OVER THE WORKSTATIONS OF FOREIGN EXCHANGE DEALERS ALONGSIDE EXISTING DATA THE COMPANY INTENDS TO BEGIN THE SERVICE WITH LIVE VIDEO COVERAGE OF EVENTS OF INTEREST TO THE FOREIGN EXCHANGE MARKETS SUCH AS NEWS CONFERENCES BECAUSE IT WILL BE EVENTDRIVEN IT WILL NOT BEGIN AS A CONTINUOUS SERVICE SAID A SPOKESMAN FOR NEW YORKBASED REUTERS AMERICA THE SERVICE WILL BE AVAILABLE INITIALLY IN LONDON AND CONTINENTAL EUROPE REUTERS SAID IT EXPECTS EVENTUALLY TO OFFER IT WORLDWIDE 9401130048 940113 WHAT'S NEWS BUSINESS AND FINANCE PRODUCER PRICES FELL 01 IN DECEMBER DRIVEN BY SHARPLY FALLING ENERGY PRICES FOR ALL OF 1993 LOWER ENERGY PRICES HELPED KEEP WHOLESALE PRICES IN CHECK LED BY A 168 DROP IN GASOLINE PRICES THE PRICE OF FINISHED GOODS ROSE ONLY 02 LAST YEAR THE CORE RATE OF INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS INCREASED 02 IN DECEMBER AND 04 FOR THE YEAR THE BEST SHOWING SINCE THE US BEGAN TRACKING THESE PRICES IN 1974 BOND PRICES SURGED AFTER THE INFLATION REPORT CALMED JITTERY INVESTORS THE TREASURY'S 30YEAR ISSUE GAINED OVER 3/4 POINT ITS YIELD WAS 618 THE DOW INDUSTRIALS FELL 168 TO 384863 WALT DISNEY AND CREDITOR BANKS ARE DUE TO START DISCUSSING A FINANCIAL RESTRUCTURING OF THE EURO DISNEY RESORT THIS MONTH AS A REVAMPED MARKETING STRATEGY KICKS IN AND PARK ATTENDANCE PICKS UP THE EMERGENCE IN THE PAST FEW DAYS OF A SECONDARY MARKET FOR ITS DEBT IS ANOTHER SIGN OF HOPE PARAMOUNT'S BOARD REJECTED VIACOM'S REVISED 93 BILLION BID AND STUCK TO ITS ENDORSEMENT OF A 99 BILLION OFFER BY QVC NETWORK THE DIRECTORS EMPHASIZED THAT FINAL OFFERS MUST BE MADE BY FEB 1 UNDER BIDDING RULES BANK OF BOSTON ALLEGEDLY VIOLATED SECURITIES LAWS AND REGULATIONS BY FAILING TO DISCLOSE FULLY THE DETERIORATION OF ITS LOAN PORTFOLIO IN 1989 ACCORDING TO AN SEC ADMINISTRATIVE COMPLAINT THE SEC PROPOSED THE FIRST SPECIFIC DISCLOSURE RULES FOR WRAP ACCOUNTS INVESTMENT PROGRAMS OFFERED BY BROKERDEALERS WHO WRAP TOGETHER ASSETMANAGEMENT FINANCIALPLANNING AND BROKERAGE SERVICES FOR AN ANNUAL FEE THE WHITE HOUSE PLANS TO PRESS RUSSIA TO LIMIT ITS EXPORTS OF ALUMINUM AS PART OF CLINTON'S MOSCOW SUMMIT WITH YELTSIN FOLLOWING MONTHS OF TALKS OVER CHARGES THAT RUSSIAN COMPANIES ARE DUMPING ALUMINUM ON THE MARKETPLACE AT UNFAIRLY LOW PRICES MESA AGREED TO PAY UNOCAL 428 MILLION TO SETTLE A SECURITIES LAWSUIT STEMMING FROM A 1985 HOSTILE TAKEOVER EFFORT LED BY MESA'S BOONE PICKENS NEW YORK STOCK EXCHANGE TRADING VOLUME WAS THE SECOND HIGHEST IN EXCHANGE HISTORY LAST WEEK SECOND ONLY TO THE WEEK OF THE OCTOBER 1987 CRASH A FEDERAL GRAND JURY IS INVESTIGATING IF DONALDSON LUFKIN & JENRETTE OR ITS PARTNER IN A REALESTATE INVESTMENT VIOLATED BIDDING RULES IN A LOAN AUCTION CONDUCTED IN LATE 1992 BY THE RTC KENDALL SQUARE REPLACED ITS AUDITOR PRICE WATERHOUSE IN WHAT IT CALLED A FEE DISPUTE THE ACTION COMES LESS THAN TWO MONTHS AFTER PRICE WITHDREW ITS ENDORSEMENT OF KENDALL'S PREVIOUSLY REPORTED RESULTS ADVANCE PUBLICATIONS' CONDE NAST NAMED AS PRESIDENT STEVEN T FLORIO CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OF THE NEW YORKER MAGAZINE TIMES MIRROR AND PACIFIC TELESIS UNVEILED A VENTURE FOR AN INFORMATION SERVICE AND ELECTRONIC MARKETPLACE CREATIVE ARTISTS AGENCY PLANS TO DEVELOP INFORMATIONAL TELEVISION PROGRAMMING THROUGH A JOINT VENTURE WITH NS BIENSTOCK AN AGENCY THAT REPRESENTS TV JOURNALISTS BONDS LEHMAN BROTHERS TREASURY INDEX 564415 UP 3478 COMMODITIES OIL 1433 A BARREL OFF 52 CENTS DOW JONES FUTURES INDEX 14091 UP 035 SPOT INDEX 12885 UP 057 DOLLAR 11220 YEN OFF 020 17337 MARKS OFF 00079 9401130047 940113 BUSINESS BRIEF STUDENT LOAN MARKETING ASSOCIATION NET GREW 83 FOR 4TH PERIOD ON RISE IN LOAN ACQUISITIONS THE STUDENT LOAN MARKETING ASSOCIATION SAID INCREASED LOAN ACQUISITIONS LED TO AN 83 GAIN IN FOURTHQUARTER PROFIT FOR THE QUARTER THE WASHINGTON DC EDUCATION LOAN PACKAGER AND SERVICER REPORTED NET INCOME OF 1096 MILLION OR 126 A SHARE COMPARED WITH NET OF 1012 MILLION OR 110 A SHARE A YEAR EARLIER INTEREST INCOME DECLINED LESS THAN 1 TO 6131 MILLION THE COMPANY KNOWN COMMONLY AS SALLIE MAE ACQUIRED 18 BILLION IN LOANS DURING THE FOURTH QUARTER COMPARED WITH 16 BILLION A YEAR EARLIER SALLIE MAE ALSO CONTINUED ITS SHARE REPURCHASE PROGRAM BUYING 12 MILLION SHARES IN THE FOURTH QUARTER AT DEC 31 SALLIE MAE HAD 841 MILLION SHARES OUTSTANDING COMPARED WITH 895 MILLION A YEAR EARLIER 9401130046 940113 BUSINESS BRIEF TANDY CORP STAFF TO INCREASE BY 3600 AS RETAIL OPERATIONS EXPAND TANDY CORP FORT WORTH TEXAS SAID IT EXPECTS TO ADD MORE THAN 3600 JOBS THIS YEAR AS IT CONTINUES TO EXPAND ITS RETAIL OPERATIONS THE OPERATOR OF THE RADIO SHACK CHAIN OF ELECTRONICS STORES SAID MOST OF ITS JOB GROWTH WILL COME FROM ITS TWO NEWEST CHAINS COMPUTER CITY AND INCREDIBLE UNIVERSE TANDY SAID THE TWO UNITS ARE EXPECTED TO ADD 3400 WORKERS THIS YEAR TANDY HAS SAID IT PLANS TO OPEN 24 NEW COMPUTER CITY STORES THIS YEAR AND SIX NEW INCREDIBLE UNIVERSE SUPERSTORES TANDY SAID RADIO SHACK'S WORK FORCE WILL GROW THIS YEAR BY ABOUT 200 PEOPLE 9401130045 940113 BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO FOURTHPERIOD WRITEDOWN OF 112 MILLION IS PLANNED PUBLIC SERVICE CO OF NEW MEXICO ALBUQUERQUE NM SAID IT PLANS TO TAKE A FOURTHQUARTER WRITEDOWN OF 112 MILLION OR 269 A SHARE RELATED TO AN EXPECTED RATE REDUCTION IN THE FOURTH QUARTER OF 1992 THE UTILITY HAD A NET LOSS OF 1332 MILLION OR 323 A SHARE AFTER CERTAIN CHARGES REVENUE WAS 2166 MILLION THE UTILITY SAID YESTERDAY THAT IT HAS AGREED WITH THE STAFF OF THE NEW MEXICO PUBLIC UTILITY COMMISSION TO REDUCE ELECTRIC RATES BY 30 MILLION OR 65 A YEAR THE AGREEMENT IS SUBJECT TO APPROVAL BY THE THREE MEMBERS OF THE COMMISSION A WRITEDOWN HAD BEEN EXPECTED BY SECURITIES ANALYSTS THUS PUBLIC SERVICE'S STOCK CLOSED UNCHANGED AT 1175 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PUBLIC SERVICE SAID THAT IT WILL ACHIEVE THE RATE REDUCTION BY AMONG OTHER THINGS REDUCING OPERATING COSTS BY 10 MILLION A YEAR AND THE WRITEDOWN 9401130044 940113 WHAT'S NEWS WORLDWIDE CLINTON SOUGHT THE APPOINTMENT OF A SPECIAL COUNSEL IN WHITEWATER THE PRESIDENT YIELDING TO RELENTLESS BIPARTISAN PRESSURE CALLED FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO LOOK INTO HIS CONTROVERSIAL INVESTMENT IN THE FAILED ARKANSAS REALESTATE COMPANY WHITEWATER DEVELOPMENT WE STILL KNOW THE CLINTONS DIDN'T DO ANYTHING WRONG ASSERTED WHITE HOUSE AIDE STEPHANOPOULOS ATTORNEY GENERAL RENO WILL APPOINT THE SPECIAL COUNSEL WHO WILL REPORT TO HER BUT OPERATE INDEPENDENTLY OF THE JUSTICE DEPARTMENT THE COUNSEL WILL HAVE THE POWER TO ISSUE SUBPOENAS AND IF NECESSARY CONVENE A GRAND JURY THE WHITE HOUSE MOVE DIDN'T MOLLIFY REPUBLICAN LAWMAKERS WHO SAID THEY WOULD SEEK TO SET UP SPECIAL COMMITTEES TO PROBE THE ISSUES SURROUNDING THE CLINTONS' WHITEWATER INVESTMENT A UKRAINE ARMS ACCORD IS READY FOR SIGNING CLINTON ANNOUNCED AFTER A SHORT MEETING IN KIEV CLINTON SAID THE AGREEMENT ON ELIMINATING THE UKRAINIAN NUCLEAR ARSENAL WOULD BE SIGNED TOMORROW IN MOSCOW BY UKRAINE'S KRAVCHUK RUSSIA'S YELTSIN AND HIMSELF IN NAILING DOWN THE PACT CLINTON OFFERED INCREASED ECONOMIC AID AND SECURITY GUARANTEES FOR UKRAINE CLINTON LATER ARRIVED IN THE RUSSIAN CAPITAL SAYING HIS URGENT TASK THERE WOULD BE TO PRESS FOR REFORM AND AGAINST NATIONALISM THE US PLANS TO HOLD BACK COMMITMENTS OF NEW AID TO RUSSIA UNTIL IT GETS ASSURANCES THAT YELTSIN WILL CONTINUE HIS MARKET REFORMS CLINTON WON RELUCTANT APPROVAL FROM THE LEADERS OF POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA FOR AN OFFER OF A COOPERATIVE ARRANGEMENT WITH NATO AS A FIRST STEP TOWARD FULL MEMBERSHIP PRESIDENT SALINAS DECLARED A UNILATERAL CEASEFIRE IN SOUTHERN MEXICO AND SAID SOLDIERS WERE ORDERED NOT TO FIRE UNLESS THEY COME UNDER ATTACK HE URGED REBELS TO TURN IN THEIR ARMS AND PROMISED TO PARDON THEM MEANWHILE MEDIATORS AND REBELS REPORTEDLY WERE POISED TO BEGIN TALKS SECRETARY OF STATE CHRISTOPHER PLANS TO MEET WITH CHINA'S FOREIGN MINISTER LATER THIS MONTH IN EUROPE AND IS LIKELY TO WARN THAT BEIJING MUST IMPROVE ITS HUMANRIGHTS RECORD IF IT WANTS TO WIN RENEWAL OF ITS FAVORABLE TRADE STATUS CLINTON MUST DECIDE BY JUNE WHETHER TO RENEW THE PREFERENTIAL STATUS CHINA AND FRANCE ANNOUNCED THEY ARE PATCHING UP THEIR YEARLONG DIPLOMATIC RIFT WITH AN AGREEMENT UNDER WHICH FRENCH COMPANIES WILL BE BANNED FROM ANY FUTURE ARMS SALES TO TAIWAN IN RETURN CHINA WILL END ITS DE FACTO BAN ON THE AWARDING OF BIG BUSINESS CONTRACTS TO FRENCH FIRMS US MILITARY OFFICIALS IN SOMALIA PULLED MOST AMERICAN SNIPER TEAMS OFF PAKISTAN'S UN POSTS AMID PAKISTANI COMMENTS THAT THE US SHARPSHOOTERS MAY BE TOO AGGRESSIVE IN FIRING AT ARMED SOMALIS THE AMERICAN SNIPERS WERE INVOLVED IN THREE RECENT INCIDENTS INCLUDING ONE SUNDAY IN WHICH A SOMALI WOMAN WAS KILLED TWO MEDICAL RESEARCH TEAMS ANNOUNCED RELATED ADVANCES IN REGENERATING SEVERED SPINAL TISSUE IN RATS PRELIMINARY FINDINGS THAT IF SUCCESSFULLY REPLICATED MAY INDICATE POSSIBLE TREATMENTS FOR PEOPLE PARALYZED BY SPINAL INJURIES INVESTIGATORS FAILED TO FIND EVIDENCE OF ILLEGAL PAYMENTS BY REPUBLICANS TO SUPPRESS THE BLACK VOTE IN NEW JERSEY'S GUBERNATORIAL ELECTION AND HAVE ENDED THE PROBE FEDERAL AND STATE PROSECUTORS SAID THE INQUIRY RESULTED FROM COMMENTS MADE AND LATER RECANTED BY ED ROLLINS CAMPAIGN MANAGER FOR GOP GOVELECT CHRISTIE WHITMAN THE FBI SAID IT IS INVESTIGATING ALLEGATIONS OF A CONSPIRACY IN LAST WEEK'S CROWBAR ATTACK ON SKATER NANCY KERRIGAN AT THE US FIGURE SKATING CHAMPIONSHIPS IN DETROIT THE AGENCY REFUSED TO CONFIRM NEWS REPORTS THAT THE HUSBAND AND BODYGUARD OF RIVAL TONYA HARDING WERE QUESTIONED BOTH MEN AND HARDING HERSELF DENIED INVOLVEMENT VIRGINIA'S GOV WILDER WON'T CHALLENGE FELLOW DEMOCRAT ROBB FOR HIS SENATE SEAT WILDER SAID HE WAS LEAVING POLITICS AFTER A 25YEAR POLITICAL CAREER CAPPED BY A TERM AS THE FIRST ELECTED BLACK GOVERNOR HE HAD SAID IN JUNE HE WOULD RUN AGAINST ROBB UN CHIEF BOUTROSGHALI HAS ISSUED A REPRIMAND TO THE FRENCH GENERAL IN CHARGE OF UN TROOPS IN THE BALKANS FOR HIS OUTSPOKEN CHALLENGES TO UN CIVILIAN OFFICIALS THE GENERAL HAS ARGUED THAT DECISIONS ON BOSNIA AIR STRIKES SHOULD BE LEFT TO THE MILITARY 9401130043 940113 REVIEW & OUTLOOK EDITORIAL AND AT HIS GENERALS THE TRICK FOR BILL CLINTON TODAY WILL BE TO FIND A WAY TO NURTURE BORIS YELTSIN'S ECONOMIC REFORM INSTINCTS WHILE AT THE SAME TIME PROTESTING RUSSIA'S NASTINESS TOWARD ITS NEIGHBORS MR CLINTON HAS TO ACCEPT THAT RUSSIAN FOREIGN POLICY WILL NOT ALWAYS DOVETAIL WITH AMERICAN PREFERENCES BUT HE ALSO HAS TO DEFINE LIMITS AND SHOW WHERE RUSSIAN POLICY COULD ENDANGER THE USRUSSIAN FRIENDSHIP THOSE VITAL POINTS OF CONCERN HAVE TO INCLUDE THE BALTICS THE BALKANS POLAND AND UKRAINE LAST MONTH THE RUSSIANS PUBLISHED A REVISED MILITARY DOCTRINE APPARENTLY WRITTEN WITH LIMITED CIVILIAN INPUT THAT WAS A NETTLESOME DOCUMENT INDEED IT REVEALED THAT RUSSIAN MILITARY LEADERS DO NOT REGARD THE NEWLY INDEPENDENT STATES OF THE FORMER SOVIET UNION AS REAL COUNTRIES THE DOCUMENT REITERATED RUSSIAN CLAIMS FOR SPECIAL POWERS TO INTERVENE IN ITS NEIGHBORHOOD AND SHOWED THAT IMPERIAL THINKING IS UNDIMINISHED THE RUSSIANS ARE PRIMARILY CONCERNED ABOUT THE NATIONS TO THEIR SOUTH BUT THE GENERALS ARE ALSO FIERCELY ATTACHED TO THEIR PROPRIETORSHIP OF KALININGRAD AND OTHER PARTS OF THE BALTIC COAST MR YELTSIN SEEMS TO HAVE LET THE IMPERIALISTS DETERMINE POLICY TOWARD THE NEAR ABROAD FIGURING THAT IT IS AN EASY PLACE TO GIVE GROUND WHILE HE SIDES WITH WESTERNIZERS ON OTHER MATTERS OF COURSE WORDS ARE NOT DEEDS ESPECIALLY IN RUSSIA BUT RUSSIAN TROOPS ALREADY HAVE INVOLVED THEMSELVES IN DISPUTES OUTSIDE RUSSIA'S BORDERS THEIR OPERATIONS LOOK PARTICULARLY NASTY IN GEORGIA GIVEN THE RECENT DEAL WITH EDUARD SHEVARDNADZE AND THE SUBSEQUENT MYSTERIOUS DEATH OF HIS RIVAL ZVIAD GAMSAKHURDIA YELTSINITES CLAIM THAT THESE ARE FREELANCING OPERATIONS BY ROGUE GENERALS BUT THIS IS HARD TO BELIEVE GIVEN THE BREADTH OF SUCH OPERATIONS IN UKRAINE AND THE BALTICS THERE HAS BEEN NO MILITARY ACTION BUT THE COUNTRIES FEEL THREATENED NONETHELESS RUSSIAN TROOPS ARE OUT OF LITHUANIA BUT REMAIN IN LATVIA AND ESTONIA A HALFMILLION RUSSIAN SOLDIERS ARE STATIONED IN KALININGRAD A RUSSIAN BALTIC ENCLAVE SURROUNDED BY LITHUANIA AND POLAND BALTIC LEADERS COMPLAIN OF COVERT DESTABILIZING OPERATIONS AND UKRAINE IS BEING HARASSED THE DANGER IS THAT RUSSIA WILL ONCE AGAIN ACT LIKE AN EMPIRE ABROAD WHICH WOULD IN TURN FOSTER AUTHORITARIANISM AT HOME THE CLINTON ADMINISTRATION HAS BEEN LESS THAN FORTHRIGHT ABOUT ALL THIS AFTER THE LUDICROUS DIRECTIVE 13 IN WHICH THE CLINTONITES BANDIED THE IDEA OF UN PEACEKEEPING IN FORMER SOVIET REPUBLICS THE US HAS UTTERED HARDLY A PEEP SURELY MR CLINTON DOESN'T WANT TO STOKE ANTIAMERICAN PASSIONS BY PUBLICLY ATTACKING THE MILITARY BUT THERE IS NO WAY THESE GENERALS CAN BE APPEASED OR BROUGHT ROUND WITH SWEET CONSIDERATION THE US HAS TO INSIST THAT MOSCOW RESPECT THE SOVEREIGNTY OF POSTCOMMUNIST NATIONS AND LEAVE THEM AT PEACE THAT INSISTENCE CAN BE DIRECTED ONLY AT RUSSIA'S PRESIDENT 9401130042 940113 MARKETING & MEDIA CREATIVE ARTISTS JOURNALIST AGENCY PLAN JOINT VENTURE BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD BETTING THAT THERE WILL BE HUGE DEMAND FOR INFORMATIONAL TELEVISION SHOWS IN THE SOCALLED 500CHANNEL TV UNIVERSE OF THE FUTURE POWERFUL CREATIVE ARTISTS AGENCY INC SAID IT PLANS TO DEVELOP SUCH PROGRAMMING THROUGH A JOINT VENTURE WITH NS BIENSTOCK INC AN AGENCY THAT REPRESENTS TV JOURNALISTS MICHAEL OVITZ CHAIRMAN OF CREATIVE ARTISTS PREDICTED IN AN INTERVIEW THAT NONFICTION PROGRAMMING INCLUDING INFORMATIONAL AND OTHER REALITYBASED TV SHOWS WILL BE CRITICALLY IMPORTANT TO EVERY DISTRIBUTION SYSTEM SUCH PROGRAMMING IS USUALLY FAR LESS EXPENSIVE TO PRODUCE THAN MOST ENTERTAINMENT PROGRAMMING MR OVITZ AND RICHARD LEIBNER A PRINCIPAL AT NS BIENSTOCK DESCRIBED THE VENTURE AS A NATURAL FIT CREATIVE ARTISTS REPRESENTS SCORES OF TELEVISION PRODUCERS WRITERS AND DIRECTORS PEOPLE WHO WILL BE LOOKING TO CREATE INFORMATIONAL PROGRAMS NS BIENSTOCK ON THE OTHER HAND REPRESENTS MORE THAN 300 TELEVISION JOURNALISTS MANY OF WHOM WOULD BE CALLED UPON TO HOST THE PROGRAMS NS BEINSTOCK WHICH HAS BEEN LED FOR THE PAST 25 YEARS BY MR LEIBNER AND HIS WIFE CAROLE COOPER COUNTS AMONG ITS CLIENTS DAN RATHER DIANE SAWYER MARIA SHRIVER AND MIKE WALLACE BUT IT ALSO REPRESENTS MANY LOCAL TV NEWS PERSONALITIES AS WELL AS JOURNALISTS WHO HOST SYNDICATED NEWS AND INFORMATION PROGRAMS THIS ALLIANCE WILL HELP THE CLIENTS AT BOTH AGENCIES TO TAKE ADVANTAGE OF PROGRAMMING OPPORTUNITIES CREATED BY THE CHANGES IN THE TELEVISION WORLD MR LEIBNER SAID THE EXECUTIVES POINTED TO THE INCREASING STABLE OF PRIMETIME NETWORK NEWS PROGRAMS SHOWS SUCH AS 20/20 DATELINE AND 60 MINUTES AS AN INDICATOR THAT SIMILAR PROGRAMS WILL BE NEEDED TO FILL THE PROGRAM SCHEDULES OF NEW NETWORKS MR OVITZ SAID IDEAS FOR PROGRAMS COULD COME FROM ALMOST ANY DEPARTMENT AT CREATIVE ARTISTS A NEW NONFICTION BOOK FOR EXAMPLE COULD BE THE BASIS FOR AN INFORMATIONALTV PROGRAM HE SAID HE SAID THAT THE AGENCY STRUCK THE DEAL FOR OUR TV CLIENT BASE BUT ADDED THAT IT WOULD TAKE ANY IDEAS OFFERED BY CLIENTS IN ITS FILM DIVISION THIS IS A MAJOR GROWTH AREA FOR OUR CLIENTELE MR OVITZ ADDED UNLIKE OTHER MAJOR TALENT AGENCIES SUCH AS WILLIAM MORRIS AGENCY OR INTERNATIONAL CREATIVE MANAGEMENT CREATIVE ARTISTS DOESN'T HAVE A NEWS DIVISION PER SE BUT THE JOINT VENTURE EFFECTIVELY PUTS IT INTO THAT BUSINESS EXPANDING ONCE AGAIN BEYOND ITS CORE TALENT MANAGEMENT SERVICES A COUPLE OF YEARS AGO IT GOT INTO THE ADVERTISING BUSINESS HIRING CREATIVE EXECUTIVES WHO HELPED DEVELOP COMMERCIALS FOR COCACOLA CO IT ALSO IS ACTIVE IN EXPLORING BUSINESS OPPORTUNITIES IN MULTIMEDIA 9401130041 940113 REVIEW & OUTLOOK EDITORIAL ASIDES REFORMAT THIS DISK THE CLINTON HEALTHCARE REFORM WAS INITIALLY DELIVERED TO THE PRESS ON FLOPPY DISK ONE OF THE ORIGINATORS OF MANAGED HEALTH CARE ECONOMIST ALAIN ENTHOVEN SEEMS TO BE SUGGESTING THAT THOSE DISKS BE REFORMATTED IN A SPEECH YESTERDAY ON THE CLINTON HEALTHCARE PROPOSAL HE SAID PRICE CONTROLS DON'T AND WON'T WORK AND THEREFORE THE FIRST THING CONGRESS SHOULD DO IS DELETE PAGES ONE THROUGH 1342 OF CLINTON'S 1342PAGE BILL PROF ENTHOVEN ALSO THINKS THE PLAN'S INTENDED GOALS OF HOLDING DOWN THE RISE IN HEALTH COSTS TO 15 BY 1996 AND EVENTUALLY ZERO IS ALSO WEAK THESE ARE GOALS THAT HAVE NOT BEEN SEEN IN THE FREE WORLD IN THE HISTORY OF HEALTH CARE IT SOUNDS TO US AS IF IT'S TIME FOR THE AMBITIOUS PROPOSAL'S BUILDERS TO SEE THAT THIS MODEL ISN'T GOING TO FLY 9401130040 940113 MEDICINE SEVERED SPINES HEALED IN RATS RESEARCHERS SAY BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TWO TEAMS OF RESEARCHERS ANNOUNCED RELATED ADVANCES IN REGENERATING SEVERED SPINAL TISSUE IN RATS PRELIMINARY FINDINGS THAT IF SUCCESSFULLY REPLICATED MAY INDICATE POSSIBLE TREATMENTS FOR PEOPLE PARALYZED BY SPINAL INJURIES A TEAM OF SCIENTISTS AT KYOTO UNIVERSITY SAID THAT USING RAT FETALTISSUE TRANSPLANTS IT HAD RESTORED VIRTUALLY FULL MOTOR FUNCTION TO NEWBORN RATS WHOSE SPINAL CORDS HAD BEEN SEVERED BY APPLYING TWO BIOCHEMICALS TO THE SITE OF AN INJURY A EUROPEAN RESEARCH GROUP FOUND IT COULD STIMULATE THE GROWTH OF SPINAL NERVE CELLS IN A WAY THAT COULD AID REGENERATION OF DAMAGED SPINAL TISSUE BOTH STUDIES APPEAR IN TODAY'S ISSUE OF THE BRITISH JOURNAL NATURE THESE TWO PAPERS MARK AN IMPORTANT STEP FORWARD SAID MARTIN SCHWAB A UNIVERSITY OF ZURICH NEUROCHEMIST WHO LED THE EUROPEAN GROUP WE SHOWED YOU CAN GET NERVE FIBERS IN ADULT ANIMALS TO SUBSTANTIALLY REGENERATE WHILE THE JAPANESE PAPER SHOWS YOU CAN GET FUNCTIONAL REPAIR OF DAMAGED SPINAL TISSUE MANY NEUROSCIENTISTS NOW BELIEVE THAT EFFECTIVE TREATMENT OF SPINAL INJURIES WILL REQUIRE A COMBINATION OF SUCH BIOCHEMICAL TREATMENTS AND SURGICAL TRANSPLANTATION TO BE SURE BOTH RESEARCH STUDIES HAVE IMPORTANT LIMITATIONS AND SCIENTISTS IN THE FIELD STRESS IT WILL TAKE SOME TIMEPERHAPS AS LONG AS A DECADE BEFORE THEY CAN EVEN BEGIN EXPERIMENTING WITH THESE TECHNIQUES IN HUMANS THE EUROPEAN STUDY HAS AS YET GONE UNCHALLENGED THE JAPANESE STUDY HOWEVER HAS ALREADY DRAWN FIRE FROM SOME US SCIENTISTS WHO CLAIM IT IS SLOPPY AND UNSUBSTANTIATED SUCH CONTROVERSY IS PAR FOR THE COURSE IN THE INTENSELY COMPETITIVE FIELD OF SPINALINJURY TREATMENT WHICH HAS LONG BEEN PLAGUED BY GRAND CLAIMS THAT COULD NOT BE REPLICATED BY OTHERS IN ALL CASES LIKE THIS YOU HAVE TO SEE THAT A NEW TECHNIQUE WORKS IN SOMEONE ELSE'S HANDS SAID PAUL PATTERSON A NEUROSCIENTIST AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY THERE HAVE BEEN SO MANY FALSE HOPES OVER THE YEARS THAT IT MAKES YOU VERY SKEPTICAL UNLIKE MOST INJURIES WHICH HEAL NATURALLY SERIOUS SPINALCORD INJURIES OFTEN LEAVE THEIR VICTIMS PERMANENTLY PARALYZED THAT'S BECAUSE THE ALLIMPORTANT SPINAL NERVE CELLS THAT TRANSMIT BOTH SENSORY INFORMATION AND THE MOTOR SIGNALS THAT CONTROL MOVEMENT LACK THE ABILITY TO GROW THROUGH THE SCAR TISSUE AND ACROSS THE GAPS LEFT BY INJURY SCIENTISTS HAVE LONG SOUGHT TO HELP SUCH NERVE CELLS REGENERATE IN LABORATORY ANIMALS BY GRAFTING OTHER NERVE TISSUE INTO SPINAL INJURIES THE IDEA IS THAT SPINAL NERVE CELLS MIGHT FIND IT EASIER TO GROW ALONG AN EXISTING BRIDGE OF NERVE TISSUE SUCH RESEARCH HOWEVER HAS BEEN CONTROVERSIAL SINCE MANY EXPERIMENTERS HAVE STUDIED ANIMALS WHOSE SPINAL CORDS WEREN'T FULLY SEVERED IN AN EFFORT TO SIMULATE CRUSHING INJURIES WHILE SOME RESEARCHERS HAVE HAD SUCCESS IN RESTORING MOTOR CONTROL THAT RESTORATION HAS USUALLY BEEN LIMITED INTO THIS TEMPEST STEPPED KYOTO UNIVERSITY NEUROSURGEON YASUSHI IWASHITA AND TWO COLLEAGUES WHO CLAIMED TO HAVE TAKEN AN EXTRA STEP FORWARD BY RESTORING NEARLY FULL MOTOR FUNCTION IN RATS WORKING WITH 32 NEWBORN RATS WHOSE SPINAL CORDS HAD BEEN COMPLETELY SEVERED DR IWASHITA'S TEAM TRANSPLANTED SEGMENTS OF EMBRYONIC RAT SPINAL CORD TISSUE INTO THE CUTS OF THE 22 RATS WHO SURVIVED THE PROCEDURE 14 RECOVERED ALMOST FULLY WITH GRAFTS THAT BLENDED SEAMLESSLY INTO THE CONNECTING SPINAL TISSUE DR IWASHITA SAID MORE IMPORTANT HE SAID THESE RATS COULD NOT ONLY WALK BUT RAN CLIMBED AND EVEN LANDED ON THEIR FEET WHEN DROPPED UPSIDE DOWN VERY MUCH LIKE NORMAL RATS THE DEGREE OF RECOVERY IS INCOMPARABLY GREATER THAN IN ANY PREVIOUS EXPERIMENT DR IWASHITA SAID ANDERS BJORKLUND A NEUROBIOLOGIST AT THE UNIVERSITY OF LUND IN SWEDEN CALLED DR IWASHITA'S RESULTS TRULY REMARKABLE IN AN ACCOMPANYING COMMENTARY IN NATURE YET MANY US SCIENTISTS WERE FAR FROM IMPRESSED POINTING OUT THAT THE NERVOUS SYSTEMS IN NEWBORN RATS ARE NATURALLY MORE LIKELY TO REGENERATE THAN THOSE IN ADULT RATS DR IWASHITA SAID HE IS ATTEMPTING TO DUPLICATE HIS WORK WITH ADULT RATS BUT SO FAR HASN'T MET WITH SUCCESS OTHER RESEARCHERS FAULTED DR IWASHITA'S LAB FOR SLOPPINESS AND LESSTHANFULL DISCLOSURE IN HIS EXPERIMENTS GEORGETOWN UNIVERSITY NEUROBIOLOGIST BARBARA BREGMAN WHO IS DOING HER OWN SPINAL NERVE RESEARCH IN COLLABORATION WITH DR SCHWAB CALLED THE JAPANESE RESEARCH TRASH CHARGING FOR INSTANCE THAT THE RESEARCH TEAM DIDN'T PUT THE RATS THROUGH WIDELY KNOWN QUANTITATIVE TESTS TO SUPPORT THEIR CLAIM OF FULL MOTOR RECOVERY DR IWASHITA INSISTED THAT HIS DATA GATHERED BY OBSERVATION ARE SUFFICIENT TO SUPPORT THE PAPER'S CLAIMS ALTHOUGH HE SAID HE PLANNED TO DO THE QUANTITATIVE TESTS IN FUTURE EXPERIMENTS BY CONTRAST THE US CRITICS OF DR IWASHITA APPLAUDED THE NEWS FROM DR SCHWAB'S GROUP IN EUROPE THAT TEAM WHICH WORKED WITH YOUNG ADULT RATS INSTEAD OF NEWBORNS BUT DIDN'T SEVER THEIR SPINES COMPLETELY SAID IT DISCOVERED THAT TWO KEY BIOCHEMICALS CAN WORK TOGETHER TO ACCELERATE THE GROWTH OF SPINAL NERVE CELLS AS MUCH AS 20 TIMES OVER THE PAST FEW YEARS SCIENTISTS HAVE UNCOVERED A VARIETY OF SOCALLED NERVE GROWTH FACTORS THAT ENCOURAGE NERVE CELLS TO PROLIFERATE USING ONE SUCH GROWTH FACTOR KNOWN AS NT3 DR SCHWAB'S TEAM ENCOURAGED SEVERED SPINAL NERVE CELLS IN RATS TO SPROUT DENSE CLOUDS OF NEW NERVE FIBERS UNDER NT3 TREATMENT ALONE HOWEVER THESE FIBERS RARELY GREW TO BE LONGER THAN ABOUT ONE MILLIMETER NOT LONG ENOUGH TO BRIDGE THE SITE OF AN INJURY DR SCHWAB'S GROUP HOWEVER HAD ANOTHER TRICK UP ITS SLEEVE HAVING EARLIER DISCOVERED THAT ADULT RATS NATURALLY PRODUCE TWO PROTEINS THAT INHIBIT NERVE GROWTH THE SCIENTISTS TURNED TO AN ANTIBODY KNOWN AS IN1 THAT WOULD SUPPRESS THOSE INHIBITING PROTEINS WHEN THEY TESTED THE COMBINATION OF IN1 AND NT3 THE SEVERED NERVE CELLS SPROUTED EXTREMELY LONG FIBERS IN ONE CASE AS LONG AS TWO CENTIMETERS SUCH NERVE CELL GROWTH HAS THE POTENTIAL TO RESTORE SOME SENSORY AND MOTOR FUNCTIONS DR SCHWAB SAID IN FACT DR BREGMAN SAYS SHE HAS STARTED TO SEE SOME IMPROVEMENT IN MOTOR CONTROL AFTER TREATING RATS USING DR SCHWAB'S TECHNIQUES 9401130039 940113 BUSINESS BRIEF NEW YORK STATE ELECTRIC & GAS CORP WORK FORCE TO BE CUT 16 SOME OFFICES CONSOLIDATED NEW YORK STATE ELECTRIC & GAS CORP BINGHAMTON NY SAID IT WILL SLASH ITS WORK FORCE BY 16 AND CONSOLIDATE SEVERAL OFFICES AS PART OF A COSTCUTTING PROGRAM THE ELECTRIC UTILITY SAID IT WOULD TRIM 800 JOBS INCLUDING ABOUT 200 THROUGH ATTRITION UNDER THE PROGRAM THE COMPANY SAID THE CUTS INCLUDE CORPORATE STAFF IN ADDITION THE REORGANIZATION WILL INVOLVE LOCAL SALARIED SUPERVISORY POSITIONS NEW YORK STATE ELECTRIC & GAS SAID THE PLAN WOULDN'T REQUIRE A RESTRUCTURING CHARGE THE COMPANY SAID THE WEAK STATE ECONOMY AND INCREASING TAX EXPENSES PROMPTED THE REORGANIZATION AMONG SPECIFIC CHANGES THE COMPANY PLANS TO CLOSE 28 SATELLITE WALKIN PAY LOCATIONS LEAVING IT WITH 13 WALKIN LOCATIONS IN ADDITION IT WILL CONSOLIDATE ELECTRIC AND GAS CREWS IN SOME REGIONS 9401130038 940113 BUSINESS BRIEF NEWPARK RESOURCES INC SHEDDING OF REPAIR BUSINESS TO BRING 17 MILLION CHARGE NEWPARK RESOURCES INC SAID IT WILL TAKE A 17 MILLION ONETIME CHARGE TO 1993 FOURTHQUARTER EARNINGS TO COVER COSTS OF SHEDDING ITS MARINE REPAIR OPERATION IN HOUSTON THE COMPANY WILL BEGIN REPORTING THOSE RESULTS AS A DISCONTINUED OPERATION AS OF THE 1993 FOURTH QUARTER IN THE YEARAGO FOURTH QUARTER THE NEW ORLEANSBASED COMPANY POSTED EARNINGS OF 15 MILLION OR 16 CENTS A SHARE NEWPARK ALSO SAID IT LEASED THE OPERATION TO A UNIT OF CLOSELY HELD SFA INDUSTRIES INC OF HOUSTON AND GRANTED THAT COMPANY AN OPTION TO PURCHASE THE FACILITY NEWPARK SAID IT ACCEPTED A COMMITMENT FOR A 9 MILLION SALE AND LEASEBACK FINANCING FROM REPUBLIC FINANCIAL CORP OF DENVER FOR THE ASSETS OF THE REPAIR BUSINESS NEWPARK SAID IT PLANS TO USE THE MONEY TO REDUCE SHORTTERM BANK BORROWINGS AND EXPAND ITS CORE INTEGRATED SERVICES TO THE OIL AND NATURAL GAS INDUSTRY SEPARATELY NEWPARK SAID THAT A SHAREHOLDER WHO ACQUIRED 700000 SHARES IN EXCHANGE FOR CANCELING 54 MILLION IN NEWPARK DEBTS COMPLETED THE SALE OF THOSE SHARES MONDAY TERMS WEREN'T DISCLOSED NEWPARK IS AN ENVIRONMENTAL MANAGEMENT AND OIL FIELD CONSTRUCTION COMPANY WITH OPERATIONS PRINCIPALLY IN LOUISIANA AND TEXAS 9401130037 940113 BUSINESS BRIEF BORLAND INTERNATIONAL INC SOFTWARE MAKER TO ACQUIRE REPORTSMITH IN STOCK DEAL BORLAND INTERNATIONAL INC SCOTTS VALLEY CALIF SAID IT AGREED TO ACQUIRE REPORTSMITH INC A CLOSELY HELD SOFTWARE MAKER FOR STOCK VALUED AT ABOUT 18 MILLION BORLAND A MAKER OF PERSONALCOMPUTER SOFTWARE SAID WILL TAKE A WRITEOFF OF AT LEAST A MAJORITY OF THE ACQUISITION PRICE IN ITS FISCAL FOURTH QUARTER ENDING MARCH 31 OR ITS FIRST QUARTER ENDING JUNE 30 BORLAND SAID IT WILL ACQUIRE REPORTSMITH WHICH MAKES SOFTWARE THAT SIMPLIFIES TAPPING INTO CORPORATE DATABASES AND CREATING REPORTS IN EXCHANGE FOR ABOUT 12 MILLION SHARES OF BORLAND STOCK BORLAND WILL HAVE ABOUT 28 MILLION SHARES OUTSTANDING AFTER THE ACQUISITION WHICH IT EXPECTS TO COMPLETE IN MARCH OR APRIL BORLAND'S STOCK CLOSED AT 15 UNCHANGED IN NASDAQ STOCK MARKET TRADING 9401130036 940113 BUSINESS BRIEF CANADIAN OCCIDENTAL PETROLEUM LTD ESTIMATE FOR OIL DISCOVERY RISES 18 FROM PRIOR ONE CANADIAN OCCIDENTAL PETROLEUM LTD SAID ITS MOST SIGNIFICANT OVERSEAS OIL DISCOVERY MAY BE BIGGER THAN PREVIOUSLY THOUGHT THE CALGARY ALBERTA OIL PRODUCER SAID AN INDEPENDENT ASSESSMENT OF THE OIL RESERVES ATTRIBUTABLE TO THE MASILA BLOCK REPUBLIC OF YEMEN AT DEC 31 1993 ESTIMATED THE OIL FIELD'S RESERVES AT 546 MILLION BARRELS IT SAID THE NEW ESTIMATE OF 317 MILLION BARRELS OF PROVED RESERVES AND 229 MILLION BARRELS OF PROBABLE RESERVES IS 18 HIGHER THAN A DEC 31 1992 ESTIMATE OF THE SAME OIL FIELD CANADIAN OCCIDENTAL HAS A 52 INTEREST IN THE MASILA BLOCK IT SAID ITS ESTIMATED SHARE OF THE BLOCK'S OIL RESERVES HAS RISEN TO 284 MILLION BARRELS FROM 241 MILLION BARRELS 9401130035 940113 AND PROGRAM TRADING STILL PLAYS KEY ROLE DESPITE EASING OF CONTROVERSY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT WAS ONCE THE MOST CONTROVERSIAL THING ON WALL STREET WITH A POPULARITY RATING JUST THIS SIDE OF IVAN BOESKY PROGRAM TRADING THE QUICK COMPUTERAIDED TRADING OF MANY STOCKS AT ONCE ACCOUNTED FOR A RECORD 119 OF OVERALL NEW YORK STOCK EXCHANGE VOLUME LAST YEAR THE MOST SINCE THE EXCHANGE STARTED RELEASING PROGRAMTRADING NUMBERS SIX YEARS AGO TRADERS SAY PROGRAM TRADING CONTINUES TO ACCELERATE MARKET MOVEMENTS BOTH UP AND DOWN SUCH AS YESTERDAY MORNING'S SHARP DECLINES BUT THERE ISN'T A BIG PUBLIC OUTCRY ANYMORE ONE REASON THIS IS A BULL MARKET AND ON MOST DAYS THE MARKET RECOVERS BEFORE THE END OF THE DAY AS IT DID YESTERDAY WHEN THE DOW JONES INDUSTRIAL AVERAGE CLOSED JUST 168 POINTS LOWER AFTER BEING DOWN 25 SOME TRADERS EVEN SAY PROGRAM TRADING HAS HELPED TO KEEP THE MARKET IN A TRADING RANGE BY QUICKLY STIFLING RALLIES AND MITIGATING DECLINES IT HAS BEEN A LONG TIME SINCE THERE WAS A HAIRRAISING MARKET DEBACLE THAT COULD BE BLAMED ON PROGRAM TRADING STOCK MARKET OFFICIALS HAVE NOTICED THE RECORD AMOUNTS OF PROGRAM TRADING JAMES COCHRANE A BIG BOARD SENIOR VICE PRESIDENT AND CHIEF ECONOMIST SAYS WE CONTINUE TO MONITOR PROGRAM TRADING AS CAREFULLY AS WE EVER HAVE BUT HE SAYS THAT PEOPLE JUST AREN'T AS INTERESTED IN THE TOPIC AS BEFORE MR COCHRANE SAYS THAT THREE OR FOUR YEARS AGO WHEN HE WOULD BE ON THE ROAD GIVING A SPEECH RIGHT OUT OF THE BOX YOU'D GET TELL ME ABOUT PROGRAM TRADING' NOW WE RARELY GET A QUESTION EXECUTIVES AT MAJOR BROKERAGE FIRMS SAY IT'S A SIMILAR STORY WITH THEM WHEN PROGRAM TRADING IS GOING ON THE UPSIDE PEOPLE DON'T COMPLAIN ASSERTS DALE HOLZEN A DEAN WITTER DISCOVER & CO BROKER IN COCOA BEACH FLA WHO HAS BEEN A CRITIC OF PROGRAM TRADING HE SAYS PROGRAM TRADERS ARE STILL CONTROLLING THE MARKET ALBEIT WITHIN A TIGHTER TRADING RANGE THAN BEFORE BUT IF THE MARKET DECLINES SHARPLY IN COMING MONTHS AS SOME ANALYSTS FEAR IT MIGHT PEOPLE WILL CLAMOR THAT IT'S BAD AGAIN MR HOLZEN SAYS THE AVERAGE 316 MILLION DAILY SHARES TRADED IN PROGRAMTRADING STRATEGIES LAST YEAR WAS DOUBLE THE AMOUNT THAT WAS BEING DONE DAILY IN THE AFTERMATH OF THE 1987 MARKET CRASH BACK THEN INVESTMENT MANAGER NEUBERGER & BERMAN ATTACKED THE PRACTICE IN FULLPAGE ADS AS THE NUMBERS RACKET ON WALL STREET AND AN AMERICAN STOCK EXCHANGE SURVEY SHOWED THAT MOST INVESTORS BLAMED PROGRAM TRADING FOR RUINING THE STOCK MARKET BROKERAGE FIRMS DOING A LOT OF PROGRAM TRADING NO LONGER ARE THE OBJECT OF RIDICULE AND SCORN ASKED IF NOMURA SECURITIES INTERNATIONAL INC WHICH DID THE SECONDLARGEST VOLUME OF PROGRAM TRADING LAST YEAR IS EVER ABUSED FOR PROGRAM TRADING A SPOKESMAN SAYS NO THE CONTROVERSY WAS IN THE 1980S NOMURA IS THE US UNIT OF JAPAN'S NOMURA SECURITIES JOSEPH SCHMUCKLER NOMURA SECURITIES INTERNATIONAL'S HEAD OF EQUITY DERIVATIVESPRODUCTS TRADING ADDS PACKAGE TRADING AND DERIVATIVE TRADING WHICH WAS SO CONTROVERSIAL IN THE '80S AND INTO THE '90S HAS BECOME A MORE MAINSTREAM PRODUCT THE BIGGEST PROGRAM TRADER ON THE BIG BOARD LAST YEAR WITH AN AVERAGE 46 MILLION PROGRAM SHARES TRADED A DAY WAS MORGAN STANLEY GROUP INC THE SECURITIES FIRM PULLED BACK FROM PROGRAM TRADING FOR ITS OWN ACCOUNT AMID THE POSTCRASH UPROAR CHAIRMAN RICHARD FISHER SAYS THE PROGRAM TRADING THE FIRM DOES IS FOR CLIENTS NOT THE FIRM'S OWN SPECULATION THAT'S ALL CUSTOMER BUSINESS MR FISHER SAYS THE CUSTOMER BUSINESS WAS THE IMPORTANT BUSINESS ANYWAY HE ADDS THAT PROGRAM TRADING IS VERY TECHNOLOGICALLY BASED WHAT THIS PROVES IS WE HAVE A VERY COMPETITIVE TECHNOLOGY THE BIG BOARD DEFINES PROGRAM TRADING AS THE BUYING OR SELLING OF A BASKET OF 15 OR MORE DIFFERENT STOCKS WITH A MARKET VALUE OF 1 MILLION OR MORE THE MOST CONTROVERSIAL FORM OF PROGRAM TRADING IS STOCKINDEX ARBITRAGE IN WHICH TRADERS TRY TO PROFIT FROM BRIEF PRICE SWINGS IN STOCKS AND THE FUTURES MARKETS BUT IT'S TOUGHER TO MAKE MONEY DOING THAT THESE DAYS COMPARED WITH THE 1980S FOR MOST FIRMS INCLUDING MORGAN STANLEY PROGRAM TRADING IS MAINLY USED FOR OTHER STRATEGIES NOW MR FISHER SAYS HIS FIRM REGARDS PROGRAM TRADING AS A CUSTOMER SERVICE THAT ALLOWS CUSTOMERS TO ASSEMBLE OR LIQUIDATE MULTISTOCK PORTFOLIOS RAPIDLY IT ISN'T ANY LONGER A WAY FOR HIS FIRM TO MAKE A LOT OF MONEY ON MARKET SWINGS HE ADDS THE BIG GAINS HAVE BEEN ARBITRAGED OUT SAYS MR FISHER PROGRAM TRADING IS AN INTEGRAL PART OF THE MARKET TODAY BUT IT'S NOT SOMETHING THAT LENDS ITSELF TO VERY LARGE GAINS OR LOSSES AND THEREFORE DOESN'T HAVE THE LARGE MARKET IMPACT IT HAD BEFORE WITH THE INCREASED ROLE OF MUTUAL FUNDS AND OTHER INSTITUTIONS IN THE MARKET THE TRADERS SAY THAT PROGRAM TRADING IS USED ROUTINELY BY MOST BROKERAGE FIRMS TO BUY AND LIQUIDATE MULTISTOCK POSITIONS QUICKLY ON THE EXCHANGE PROGRAM TRADING HAS BECOME TERRIFICALLY ROUTINE AS ONE BIG BOARD FLOOR BROKER PUTS IT PROFESSIONAL TRADERS PREPARE THEMSELVES FOR IT THEY'VE BEEN ABLE TO ATTENUATE THE BLIPS IT HAS BECOME JUST ANOTHER STRATEGY THE MARKET ADJUSTS TO INDEX ARBITRAGE USED TO ACCOUNT FOR ABOUT HALF OF ALL PROGRAM TRADING FOR EXAMPLE 51 IN 1991 BUT LAST YEAR INDEX ARBITRAGE ACCOUNTED FOR JUST 38 OF SUCH TRADING A TYPICAL PROGRAM TRADE THESE DAYS SAYS THE BIG BOARD'S MR COCHRANE INVOLVES A PORTFOLIO MANAGER'S BUYING A GLOBAL PACKAGE OF UTILITY STOCKS AND IT COMES OUT AS A PROGRAM HE SAYS WHATEVER THE TYPE PROGRAM TRADING APPEARS SET TO GROW EVEN MORE THE BIG BOARD HAS BEEN PUSHING TO ATTRACT MORE PROGRAM TRADING FROM BIG INVESTORS THAT USED TO BE DONE IN LONDON WHERE RULES ABOUT DISCLOSURE ARE LOOSER A NEW BIG BOARD AFTERHOURS TRADING SESSION WAS SET UP WITH SLACKER RULES ABOUT DISCLOSURE AND ABOUT HALF OF THAT LONDON TRADING HAS NOW BEEN REPATRIATED THE BIG BOARD SAYS INDEED OF THE RECORD 119 OF OVERALL TRADING THAT PROGRAM TRADING ACCOUNTED FOR IN 1993 ABOUT A PERCENTAGE POINT REFLECTS THIS NEWLY ABSORBED TRADING THE EXCHANGE ADDS AT THE SAME TIME NEW RULES PUT IN AT THE BIG BOARD AFTER THE CRASH APPEAR TO BE HELPING TO KEEP PROGRAM TRADING UNDER CONTROL AT LEAST FOR NOW PROGRAM TRADING IS EFFECTIVELY STIFLED ANY TIME THE DOW JONES INDUSTRIALS RISE OR FALL 50 POINTS THIS COLLAR WAS ACTIVATED 16 TIMES IN 1992 BUT ONLY NINE TIMES IN 1993 A REFLECTION OF HOW RARE IT IS FOR THE MARKET TO EVEN ATTEMPT A BIG SWING CRITICS SAY ALL THAT MEANS IS THAT PROGRAM TRADERS ARE ADEPT AT PUSHING THE MARKET AROUND WITHIN A TRADING RANGE THAT IS PLUS OR MINUS 50 POINTS THE MARKET COULD STILL DECLINE SHARPLY OVER TIME OF COURSE BUT A SINGLE DAY LIKE IN '87 PROBABLY WOULDN'T HAPPEN SAYS MR COCHRANE REFERRING TO THE INDUSTRIAL AVERAGE'S 508POINT CRASH ON OCT 19 HE CITES THE 50POINT COLLAR AND OTHER NEW RULES THAT WOULD KICK IN DURING BIGGER MARKET DECLINES THE WHOLE PHILOSOPHY HAS BEEN THROW SOME SAND IN THE GEARS GIVE PEOPLE A CHANCE TO CATCH THEIR BREATH BROKERS LIKE DEAN WITTER'S MR HOLZEN AREN'T CONVINCED THAT ALL IS WELL THEY SAY PROGRAM TRADING STILL CAUSES HEADACHES EVEN WHEN THE MARKET ISN'T RISING OR FALLING 60 POINTS A DAY AS OFTEN AS IT ONCE DID MR HOLZEN SAYS HE CONSTANTLY HAS TO ASSURE SMALLINVESTOR CLIENTS THAT QUICK 20POINT OR 30POINT DECLINES IN THE MARKET AREN'T NECESSARILY IMPORTANT YESTERDAY MORNING FOR EXAMPLE THE PROGRAMPROPELLED DECLINE IN THE MARKET HAD PEOPLE REALLY CONCERNED THEY WERE SAYING IS THIS THE BEGINNING OF THE CORRECTION WE ARE LOOKING FOR' AND SOME INVESTORS PROBABLY SOLD WHEN THEY SHOULDN'T HAVE HE SAYS PROGRAM TRADING CONCLUDES MR HOLZEN INFLUENCES PEOPLE FOR THE WRONG REASONS SEE RELATED ARTICLE STOCK MARKET VOLUME IS SURGING TO RECORD LEVELS WSJ JAN 13 1993 THE PROGRAMTRADING PICTURE TOP 10 PROGRAM TRADERS ON THE NYSE IN 1993 IN AVERAGE AMOUNT OF PROGRAM SHARES TRADED DAILY IN MILLIONS SHARES TRADED MORGAN STANLEY 46 NOMURA SECURITIES 38 UBS SECURITIES 29 CS FIRST BOSTON 22 SALOMON BROTHERS 17 SUSQUEHANNA 17 COOPER NEFF 16 BEAR STEARNS 15 KIDDER PEABODY 13 MERRILL LYNCH 11 OVERALL AVERAGE 316 SOURCE NEW YORK STOCK EXCHANGE/WSJ CALCULATION 9401130034 940113 BUSINESS BRIEF COLTEC INDUSTRIES INC FOURTHPERIOD NET FELL 72 ON DEBTRELATED CHARGES COLTEC INDUSTRIES INC SAID FOURTHQUARTER EARNINGS FELL 72 ON EXTROARDINARY CHARGES FROM EARLY RETIREMENT AND REFINANCING OF DEBT PROFIT FELL TO 65 MILLION OR NINE CENTS A SHARE INCLUDING CHARGES OF 168 MILLION OR 24 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 226 MILLION OR 33 CENTS A SHARE INCLUDING DEBTRELATED CHARGES OF 16 MILLION OR TWO CENTS A SHARE A YEAR EARLIER SALES ROSE TO 3442 MILLION FROM 3405 MILLION COLTEC WHICH MAKES AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL PRODUCTS SAID IT ARRANGED A 415 MILLION REVOLVING CREDIT FACILITY WITH A GROUP OF BANKS WHICH WILL REDUCE INTEREST COSTS AND HAS BEEN USED TO PREPAY BORROWINGS UNDER A 1992 CREDIT AGREEMENT FOR THE YEAR NET TOTALED 474 MILLION OR 68 CENTS A SHARE INCLUDING EXTRAORDINARY CHARGES OF 178 MILLION OR 26 CENTS A SHARE FOR THE PREVIOUS YEAR THE COMPANY HAD A NET LOSS OF 42 MILLION OR 72 CENTS A SHARE INCLUDING EXTRAORDINARY CHARGES OF 107 MILLION OR 183 A SHARE SALES FELL 24 TO 133 BILLION FROM 137 BILLION 9401130033 940113 FOR JAPAN'S ECONOMY A CALL TO ARMS BY KENICHI OHMAE TOKYO WHEN THE TIDE TURNED AGAINST JAPAN IN WORLD WAR II VIRTUALLY NO ONE NOT THE POLITICAL LEADERS NOT THE PUBLIC AND CERTAINLY NOT THE GENERALS WAS ABLE TO COMPREHEND THAT THE COUNTRY WAS HEADED INEXORABLY FOR DEFEAT EVEN AT THE CENTRAL MILITARY HEADQUARTERS THE FACTS WEREN'T AVAILABLE THE GENERAL STAFF WOULD FOR EXAMPLE ASK THE OFFICER IN CHARGE OF OPERATIONS IN SIBERIA HOW THINGS WERE GOING THE INEVITABLE ANSWER FINE WITH A BIT MORE LOGISTICAL SUPPORT WE'LL BE IN PRETTY GOOD SHAPE THEN THE GENERAL STAFF WOULD TELL HIS COUNTERPART IN CHINA THAT SIBERIA WAS OK AND ASK ABOUT CHINA AGAIN FINE THEN IT WOULD TURN TO HIS COUNTERPARTS IN INDOCHINA THE PHILIPPINES INDONESIA MICRONESIA EVERYWHERE FINE NO ONE HOWEVER TOOK THE TIME TO ADD UP ALL THE RESOURCES THESE OPERATIONS NEEDED OR TO ASSESS THE OVERALL LOGISTICAL BURDEN OF PROVIDING THEM ACROSS SO BROAD A GEOGRAPHY VIEWED INCREMENTALLY EVERYTHING WAS STILL POSSIBLE VIEWED CUMULATIVELY THE SITUATION WAS NOTHING SHORT OF A DISASTER IN THE MAKING IN JAPAN TODAY AS THINGS HAVE STARTED TO GO BADLY ON THE ECONOMIC FRONT VIRTUALLY NO ONE HAS BEEN WILLING TO DO THIS KIND OF ADDITION THE MINISTRY OF FINANCE SAYS THAT WITH A BIT MORE SUPPORT EVERYTHING WILL BE FINE THE BANKING BUREAU SAYS THAT GIVEN LOWER INTEREST RATES IT CAN HANDLE ALL CURRENT DIFFICULTIES IN THE FINANCIAL SECTOR THE SECURITIES BUREAU SAYS THAT WITH A BIT MORE HELP FROM THE POSTAL SAVINGS AND PENSION FUNDS IT CAN KEEP THE NIKKEI AT A HEALTHY LEVEL EVEN BUSINESS LEADERS WHO ARE WILLING TO ADMIT THAT THE SITUATION IS TROUBLESOME CLAIM THAT IF ONLY THE GOVERNMENT WILL STIMULATE THE ECONOMY A BIT MORE EVERYTHING WILL BE FINE THIS IS IRRESPONSIBLE NONSENSE IT IS NOT MERELY FIDDLING WHILE JAPAN BURNS IT IS PILING UP ALL AVAILABLE VIOLINS TO MAKE THEIR USE AS TINDER MORE CONVENIENT AS CITIZENS AND CONSUMERS WE JAPANESE SHOULD KNOW THE RHETORIC BY NOW WE SHOULD BE ABLE TO RECOGNIZE WHEN GOVERNMENT IS PLANNING TO BAIL OUT INDUSTRY AT TAXPAYERS' EXPENSE WE SHOULD BE ABLE TO DO THE NECESSARY SUMS AND WE CERTAINLY SHOULD BE ABLE TO DEMAND THAT OUR LEADERS DO THEM TOO AND WILL ACT ON THE RESULTS TO THAT END WE CAN ONLY HOPE THAT EACH OF OUR LEADERS MADE A BINDING PERSONAL COMMITMENT TO THREE NEW YEAR'S RESOLUTIONS IN TOKYO THE LONGTERM VALUE OF COMMERCIAL PROPERTY IS NOW AT LEAST 70 LESS THAN IT WAS IN 1989 HOWEVER BECAUSE THERE HAVE BEEN SO VERY FEW TRANSACTIONS DURING THE PAST SEVERAL YEARS BY COMPANIES FEARFUL OF REALIZING PAPER LOSSES THE MARKET HAS ACTUALLY ADJUSTED BY ONLY 25 WE DO NOT THEREFORE REALLY KNOW HOW LOW IT WILL ULTIMATELY PLUNGE ONLY THAT THERE IS STILL A HUGE DISTANCE TO GO HUGE IS THE CRITICAL TERM HERE AT ITS PEAK THE VALUE OF TOKYO'S PROPERTY MARKET WAS TWICE THAT OF ALL THE REAL ESTATE IN THE US LOSING AT A MINIMUM 70 OF THAT VALUE IS NOT BY ANY STRETCH OF THE IMAGINATION AN EASILY MANAGED ECONOMIC EVENT MULTITRILLIONDOLLAR LOSSES ARE PRECISELY WHAT JAPAN'S FINANCIAL SYSTEM FACES ANY HONEST ECONOMIC SURGEON WILL CONFESS THAT NOT EVERY BANK CAN OR SHOULD BE SAVED DESPITE THE BUREAUCRATIC REFLEX TO DO SO SO LONG AS HOPELESSLY WEAK BANKS ARE KEPT AFLOAT BAD INVESTMENTS AREN'T WRITTEN OFF INSOLVENT INSTITUTIONS AREN'T ALLOWED TO GO UNDER AND STOCK PRICES ARE KEPT ARTIFICIALLY HIGH THE PATIENT CAN'T BE HELPED THE DRASTIC SURGERY NEEDED HERE IS THE KIND THAT WILL RESTORE TRANSPARENCY AND FREEDOM TO A MARKET THAT HAS LONG KNOWN ONLY THE INTRUSIVE HAND OF GOVERNMENT CONTROL UNLIKE IN 1945 THE JAPANESE PEOPLE TODAY KNOW THAT SUCCESS LET ALONE VICTORY ISN'T POSSIBLE AS THINGS NOW STAND THEY AREN'T PRISONERS OF DOCTORED GOVERNMENT INFORMATION THEY CAN READ AND SEE AND HEAR FOR THEMSELVES NOR DO THEY BELIEVE THAT PERFORMING THE NECESSARY FINANCIAL SURGERY WILL TRIGGER A PANIC THEY KNOW THAT THE GOVERNMENT HAS IMMENSE HIDDEN ASSETS NATIONAL LAND AND INTELLECTUAL PROPERTIES FOR EXAMPLE THAT CAN BE USED TO CUSHION THE INEVITABLE POSTSURGERY ADJUSTMENTS THEY KNOW THAT IN THE AREA OF RESIDENTIAL PROPERTY FOR EXAMPLE IT IS ONLY ANTIQUATED TAX LAWS ON CAPITAL GAINS AND CUMBERSOME REGULATIONS ON SELLING UNPRODUCTIVE FARMLAND THAT KEEP MORE THAN 160000 ACRES OF LAND IN THE GREATER TOKYO AREA OFF THE MARKET FOR PRODUCTIVE RESIDENTIAL DEVELOPMENT THAT'S TWICE THE AMOUNT NOW DEVOTED TO PRIVATE HOUSING AND THEY KNOW THAT INDIVIDUALLY THEY HAVE EXTENSIVE SAVINGS TO SPEND IF ONLY THEY HAD SOMETHING TO BUY IF PRICES IN JAPAN FOR THE THINGS PEOPLE REALLY WANT TO BUY AND HOUSING IS AT THE TOP OF THE LIST FELL TO EVEN HALFWAY REASONABLE LEVELS THOSE PRIVATE SAVINGS ROUGHLY 6 TRILLION WOULD FLOW RAPIDLY INTO USE IRONICALLY THE MORE THE GOVERNMENT KEEPS STOCK AND PROPERTY PRICES HIGH THE LESS APPETITE THE PRIVATE SECTOR WILL HAVE FOR THEM HENCE THE NEED FOR MORE ARTIFICIAL STIMULATION BY CONTRAST WHERE PRICES ARE FALLING ON AUTOMOBILES AND CONSUMER ELECTRONIC GOODS FOR EXAMPLE THERE IS NO PENTUP BACKLOG OF DEMAND OUR LIVING ROOMS AND CLOSETS AND GARAGES ARE ALREADY FULL FEW OF US NEED A THIRD TV SET OR A SECOND FAX MACHINE WE HAVE MONEY TO SPEND BUT WE PUT IT IN THE BANK BECAUSE THERE IS NOTHING IN JAPAN THAT WE WANT TO BUY AT CURRENT PRICE LEVELS WE ALREADY HAVE THE MONEY BUT WE SAVE IT OR USE IT TO TRAVEL ABROAD IF WE WANT TO GO SKIING FOR FOUR DAYS IT IS CHEAPER FOR US TO GO TO CANADA THAN TO HOKKAIDO WE AMUSE OURSELVES BY PLAYING PACHINKO AT 170 BILLION A YEAR THE LARGEST INDUSTRY IN THE COUNTRY WE DON'T FEAR PANIC AND WE DON'T NEED FISCAL STIMULATION WHAT WE DO NEED ARE MARKETS THAT WORK AND A WILLINGNESS ON THE GOVERNMENT'S PART TO RECOGNIZE THAT IN JAPAN PROSPERITY NOW FLOWS IF IT FLOWS AT ALL FROM CONSUMER SOVEREIGNTY NOT FROM BUREAUCRATIC EFFORTS TO SPEND TAXPAYERS' MONEY IT IS A BASELESS HOPE TO POSTPONE THE NEED FOR DRASTIC MARKET SURGERY ON THE GROUND THAT THE MANUFACTURING PERFORMANCE THAT FUELED JAPAN'S SUCCESS DURING THE 1980S WILL KICK IN AGAIN AS SOON AS THE CURRENT WORLDWIDE RECESSION EASES IT WILL NOT THINGS HAVE CHANGED FUNDAMENTALLY MOST IMPORTANT THE MANUFACTURING BASE IN THE US HAS BEEN REVITALIZED OUR OWN TRANSPLANT OPERATIONS IN THE US HAVE SHOWN US THAT WE CAN PRODUCE GOODS OF THE SAME QUALITY THERE AS AT HOME BUT AT A COST SAVINGS OF 30 THIS COST DIFFERENCE ISN'T GOING TO DISAPPEAR TODAY THE AVERAGE FAMILY INCOME IN THE US IS ROUGHLY 40000 A NUMBER THAT HASN'T INCREASED IN REAL TERMS FOR A DOZEN YEARS IN JAPAN THE COMPARABLE FIGURE IS 72000 AT THE SAME TIME OF COURSE COUNTRIES LIKE CHINA ARE COMING ONTO THE SCENE WITH COMPETENT WORKERS WHO EARN PERHAPS 1 OF WHAT THEIR JAPANESE COUNTERPARTS EARN WE SIMPLY CAN'T COMPETE WITH THIS LABORCOST DISADVANTAGE FROM A DOMESTIC PRODUCTION BASE NOR CAN WE MATCH THE FLEXIBLE LABOR PRACTICES OF THESE OTHER VENUES NOR DO OUR COMPANIES HAVE ANY RECENT EXPERIENCE IN DEALING WITH UNIONS THAT WILL CERTAINLY PROTEST THE KIND OF RESTRUCTURING THAT US COMPANIES HAVE EXPERIENCED AS A RESULT NEARLY ALL NEW INVESTMENT IN JAPANESE MANUFACTURING IS GOING NOT TO JAPAN BUT TO NORTH AMERICA CHINA AND THE OTHER DEVELOPING ECONOMIES IN ASIA THESE COUNTRIES ARE POISED TO DEAL WITH THE WEALTH CREATING OPPORTUNITIES OF THE 21ST CENTURY WE ARE STILL TRYING TO RECREATE THE MANUFACTURING OPPORTUNITIES OF THE 1980S JAPAN'S RECOVERY WHEN IT COMES WILL BE DRIVEN BY A RESURGENT HOUSING MARKET COUPLED WITH ALL THE SECONDARY DEMAND THAT IT TRIGGERS IT WOULD BE NICE TO THINK THAT OUR LEADERS WILL MAKE AND HONOR SUCH NEW YEAR'S RESOLUTIONS AS THESE THE SIGNS HOWEVER AREN'T ENCOURAGING A WEAK GOVERNMENT COALITION WITH PRECIOUS LITTLE ROOM IN WHICH TO MANEUVER BEYOND OFFERING UP THE USUAL STIMULATION PACKAGES SCARED BUREAUCRATS WHO THINK ONLY OF STIMULATION BECAUSE ANYTHING ELSE WOULD BE AN ADMISSION THAT THE POLICY TOOLS THEY WIELD NO LONGER WORK AND INDUSTRY EXECUTIVES WHO CALL OUT FOR STIMULATION BECAUSE THE PROSPECT OF SERIOUS RESTRUCTURING IS SO UNPALATABLE SO GOOD RESOLUTIONS ASIDE MORE STIMULATION IS WHAT WE PROBABLY WILL GET AND LIKE THE 300 BILLION SPENT SINCE AUGUST 1992 IT WILL FAIL ITS FAILURE WILL DO MUCH TO PRECIPITATE AN ECONOMIC CRASH FIRST IN JAPAN AND THEN WITH A DOMINOLIKE EFFECT IN THE OTHER INDUSTRIALIZED ECONOMIES UNLIKE IN 1945 THESE ECONOMIES ARE WELL AND TRULY INTEGRATED JAPAN REMEMBER FINANCED ONETHIRD OF THE US DEFICIT DURING THE 1980S WHEN JAPAN GOES THE CONSEQUENCES WILL NOT STOP IN JAPAN MR OHMAE IS A DIRECTOR OF MCKINSEY & CO 9401130032 940113 WHITE HOUSE WEIGHS PLAN TO DECLASSIFY US SECRETS WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING A PLAN THAT WOULD AUTOMATICALLY DECLASSIFY GOVERNMENT SECRETS WITHIN 40 YEARS THE PLAN BEING DEBATED IN THE NATIONAL SECURITY COUNCIL WOULD GREATLY REVAMP THE CLASSIFICATION SYSTEM IN PLACE SINCE THE REAGAN ADMINISTRATION IT WOULD REQUIRE GOVERNMENT OFFICIALS TO KEEP INFORMATION UNCLASSIFIED FOR INSTANCE IF THEY DETERMINE THAT THE PUBLIC INTEREST REQUIRES IT NO SUCH BALANCING TEST CURRENTLY IS REQUIRED THE FEDERATION OF AMERICAN SCIENTISTS A LIBERAL ADVOCACY GROUP THAT OBTAINED AND RELEASED COPIES OF THE PLAN SAID THE PROPOSAL DOESN'T GO FAR ENOUGH THE GROUP SAID GOVERNMENT SECRETS SHOULD BE DECLASSIFIED WITHIN 20 YEARS THE VERSION OF THE PLAN RELEASED BY THE FEDERATION IS DATED NOV 10 CLINTON ADMINISTRATION OFFICIALS SAID THE PROPOSAL HAS BEEN CHANGED SINCE THEN 9401130031 940113 BUSINESS BRIEF CSF HOLDINGS INC OHIO ASSETS OF BANK UNIT ARE BOUGHT FOR 12 MILLION THREE OHIO BANKS HAVE PURCHASED FOR 12 MILLION THE OHIO ASSETS OF CITIZENS FEDERAL BANK A UNIT OF CSF HOLDINGS INC OF MIAMI THE TRANSACTION INVOLVES 13 BANKING OFFICES WITH ABOUT 464 MILLION IN DEPOSITS OPERATING UNDER THE NAME OF EQUITABLE SAVINGS FIFTH THIRD BANCORP OF CINCINNATI PURCHASED EIGHT OFFICES WITH DEPOSITS OF 305 MILLION CHARTER ONE BANK FS OF CLEVELAND BOUGHT FOUR OFFICES WITH 112 MILLION IN DEPOSITS AND FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF WOOSTER ACQUIRED ONE WITH 47 MILLION IN DEPOSITS CITIZENS FEDERAL WITH ABOUT 44 BILLION IN ASSETS IN FLORIDA CALIFORNIA OHIO AND VIRGINIA ENTERED OHIO IN 1986 WHEN IT ACQUIRED EQUITABLE SAVINGS IT EXPECTS TO RECORD A PROFIT OF ABOUT 8 MILLION FROM THE SALE 9401130030 940113 MARKETING & MEDIA KIII'S NEW YORK MAGAZINE NAMES ANDERSEN EDITOR NEW YORK KIII COMMUNICATIONS CORP NAMED KURT ANDERSEN TIME MAGAZINE EDITOR AT LARGE TO BE EDITOR OF THE COMPANY'S NEW YORK MAGAZINE MR ANDERSEN 39 YEARS OLD REPLACES EDWARD KOSNER WHO LEFT IN SEPTEMBER TO BECOME EDITOR IN CHIEF OF HEARST CORP'S ESQUIRE MR ANDERSEN WHO WRITES A COLUMN FOR TIME ON MEDIA AND CULTURE AND WHO ENGINEERED THE RECENT REDESIGN OF THE WEEKLY NEWSMAGAZINE'S CHRONICLE SECTION WAS A COFOUNDER OF SPY MAGAZINE WHICH HE EDITED FROM 1986 TO 1992 KIII'S TOP MAGAZINE EXECUTIVE HARRY MCQUILLEN DESCRIBED THE 25YEAROLD MAGAZINE AS IN GOOD SHAPE ADDING THAT KURT AGREES THAT WE NEED EVOLUTIONARY CHANGE RATHER THAN RADICAL REDESIGN THE FINALISTS IN KIII'S SEARCH FOR AN EDITOR INCLUDED MICHAEL KINSLEY COHOST OF CNN'S CROSSFIRE AND FORMER EDITOR OF THE NEW REPUBLIC MAGAZINE AND PETER HERBST A VETERAN NEW YORK MAGAZINE STAFFER WHO HAS BEEN ACTING EDITOR KIII COMMUNICATIONS IS A PUBLISHING CONCERN FUNDED AND PARTLY OWNED BY KOHLBERG KRAVIS ROBERTS & CO 9401130029 940113 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 BANK OF DELAWARE 100 MILLION OF BANK NOTES DUE JAN 20 1995 PRICED INITIALLY AT PAR TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE ONEYEAR TREASURY BILLS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BANK OF DELAWARE IS A UNIT OF PNC BANK CORP CAROLINA POWER & LIGHT CO 150 MILLION OF FIRSTMORTGAGE BONDS DUE JAN 15 2004 PRICED AS 5875S AT 99069 TO YIELD 6 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA1 BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY PRUDENTIAL SECURITIES INC FEDERAL HOME LOAN BANK SYSTEM 300 MILLION OF NOTES DUE JAN 21 2004 PRICED AT PAR TO YIELD 616 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 59 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE JAN 22 1999 PRICED AT PAR TO YIELD 512 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE JAN 21 2004 PRICED AT PAR TO YIELD 614 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 KANSAS GAS & ELECTRIC CO 100 MILLION OF FIRSTMORTGAGE BONDS DUE JAN 15 2006 PRICED AS 62S AT 999 TO YIELD 6212 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO PNC BANK 400 MILLION OF BANK NOTES DUE JAN 20 1995 PRICED INITIALLY AT PAR TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE ONEYEAR TREASURY BILLS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PNC BANK NA IS A UNIT OF PNC BANK CORP ROGERS CABLESYSTEMS LTD 300 MILLION CANADIAN DOLLARS US2269 MILLION OF SENIOR SECONDARY PRIORITY NOTES DUE JAN 15 2014 PRICED AT PAR TO YIELD 965 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 249 BASIS POINTS ABOVE CANADIAN TREASURYS RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ROGERS CABLESYSTEMS IS A UNIT OF ROGERS COMMUNICATIONS SMITH BARNEY SHEARSON HOLDINGS INC 200 MILLION OF NOTES DUE JAN 15 1999 PRICED AS 55S AT 99818 TO YIELD 5542 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC SMITH BARNEY SHEARSON HOLDINGS IS A UNIT OF TRAVELERS INC UNION ELECTRIC CO 100 MILLION OF FIRSTMORTGAGE BONDS DUE JAN 15 2024 PRICED AS 7S AT 9981 TO YIELD 7015 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AMERICAN SENSORS INC INITIAL PUBLIC OFFERING OF 862500 UNITS AT 6 EACH EACH UNIT CONSISTS OF ONE COMMON SHARE AND ONE WARRANT EXERCISABLE AT 8 UNTIL DEC 31 1998 THE OFFERING WAS UNDERWRITTEN BY TRINITY CAPITAL SECURITIES LTD AND THOMSON KERNAGHAN & CO SCICLONE PHARMACEUTICALS INC TWO MILLION COMMON SHARES PRICED AT 2325 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES WONDERWARE CORP TWO MILLION COMMON SHARES PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES ORLANDO UTILITIES COMMISSION FLORIDA 1375 MILLION OF SERIES 1994A WATER AND ELECTRIC SUBORDINATED REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 325 IN 1996 TO 532 IN 2020 MOODY'S RATED THE BONDS DOUBLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 520 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1673 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 350 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1674 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS BARCLAYS BANK PLC UK 500 MILLION OF 65 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 100742 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 99092 TO YIELD 663 A MARGIN OF 30 BASIS POINTS OVER COMPARABLE UK GILT FEES TWO BAYERISCHE LANDESBANK GIROZENTRALE GERMANY ONE BILLION MARKS OF 6 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 1024 FOR OWN ACCOUNT REOFFERED AT PAR TO YIELD 6 A MARGIN OF 42 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 25 CAISSE FRANCAISE DE DEVELOPPEMENT FRANCE 200 MILLION ECU OF 55 EUROBONDS DUE FEB 9 2001 AT ISSUE PRICE 101405 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9983 TO YIELD 553 FEES 1875 CAISSE NATIONALE DES AUTOROUTES FRENCH AGENCY 25 BILLION FRENCH FRANCS OF 55 EUROBONDS DUE FEB 14 2002 AT ISSUE AND REOFFER PRICE 9905 VIA SOCIETE GENERALE AND JP MORGAN & CIE BONDS YIELD 565 A MARGIN OF 19 BASIS POINTS OVER INTERPOLATED FRENCHTREASURY YIELD CURVE FEES 03 CHELTENHAM & GLOUCESTER BUILDING SOCIETY UK 150 MILLION OF FLOATINGRATE EURONOTES AT ISSUE AND REOFFER PRICE PAR VIA KLEINWORT BENSON SECURITIES LTD PAYABLE QUARTERLY AT 10 BASIS POINTS OVER THREEMONTH POUND LONDON INTERBANK OFFERED RATE CALLABLE QUARTERLY AT PAR FROM JANUARY 1998 FEES 01 CREDIT FONCIER DE FRANCE FRENCH AGENCY 300 MILLION ECU OF 55 EUROBONDS DUE FEB 8 2001 AT ISSUE PRICE 101175 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 996 TO YIELD 557 FEES 1875 DAIWA OVERSEAS FINANCE LTD HONG KONG JAPANESE PARENT 50 MILLION OF EURONOTES DUE JAN 27 2004 AT ISSUE AND REOFFER PRICE 1002 VIA DAIWA BANK CAPITAL MANAGEMENT LTD PAYABLE SEMIANNUALLY AT 45 BASIS POINTS OVER SIXMONTH DOLLAR LIBOR UNTIL JAN 27 1997 THEREAFTER COUPON 8 ANNUALLY NOTES CALLABLE AT PAR ON JAN 27 1997 GUARANTOR DAIWA BANK LTD FEES 025 DE NATIONALE INVESTERINGSBANK NV DUTCH AGENCY 150 MILLION OF 6125 EUROBONDS DUE DEC 22 1999 AT ISSUE AND REOFFER PRICE 9988 VIA SAMUEL MONTAGU & CO BONDS YIELD 614 A MARGIN OF 30 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 03 EUROPEAN INVESTMENT BANK SUPRANATIONAL 20 BILLION SPANISH PESETAS OF 79 MATADOR BONDS DUE FEB 2 2004 AT ISSUE PRICE 1016 VIA BANCO SANTANDER DE NEGOCIOS BONDS YIELD 792 AT 9985 COMANAGERS' BREAKEVEN PRICE A MARGIN OF NINE BASIS POINTS BELOW AVERAGE YIELD ON 8 SPANISH GOVERNMENT BOND OF 2004 AND 105 BONOS OF 2003 FEES 1875 LESS 0125 FOR LEAD MANAGER EXPORT DEVELOPMENT CORP CANADIAN AGENCY 200 BILLION ITALIAN LIRE OF 76 EUROBONDS DUE FEB 14 2001 AT ISSUE PRICE 101875 VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 76 AFTER FEES OF 1875 FINLAND SOVEREIGN TWO BILLION MARKS OF 55 EUROBONDS DUE FEB 9 2001 AT ISSUE PRICE 10095 VIA DRESDNER BANK AG REOFFERED AT 99 TO YIELD 568 A MARGIN OF 22 BASIS POINTS OVER COMPARABLE GERMAN BUND FEES 225 KFW INTERNATIONAL FINANCE INC GERMAN PARENT 200 MILLION ECU OF 55 EUROBONDS DUE JAN 31 2001 AT ISSUE PRICE 101525 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 99925 TO YIELD 551 GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES 1875 LANDESBANK HESSENTHURINGEN GIROZENTRALE GERMANY 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 10 1997 AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS ONE MINIMUM COUPON 3 MAXIMUM COUPON 4 FIRST SIX MONTHS RISING EVERY SIX MONTHS TO 7 IN FINAL SIX MONTHS FEES 02 LANDESBANK RHEINLANDPFALZ GIRONZENTRALE GERMANY 120 MILLION SWISS FRANCS OF 225 PUBLIC BONDS DUE FEB 15 2001 AT ISSUE PRICE 101 WITH EQUITY WARRANTS TO PURCHASE BASKET OF GERMAN BANK STOCK VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM FEB 22 TO APR 15 1996 FINAL TERMS FIXED AT EXPECTED PREMIUM 092 ABOVE CLOSING SHARE PRICE JAN 13 AND JAN 14 FEES 25 MONTREAL MUNICIPALITY 125 MILLION CANADIAN DOLLARS OF 6375 EUROBONDS DUE FEB 15 2001 AT ISSUE PRICE 10085 VIA WOOD GUNDY INC REOFFERED AT 993 TO YIELD 65 A MARGIN OF 48 BASIS POINTS ABOVE INTERPOLATED FIVEYEAR TO 10YEAR CANADIAN GOVERNMENT BOND CURVE FEES 1875 NACIONAL FINANCIERA SNC GRAND CAYMAN BRANCH MEXICAN PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1996 AT ISSUE AND REOFFER PRICE 99825 VIA KIDDER PEABODY SECURITIES CO PAYABLE SEMIANNUALLY AT 0875 POINT ABOVE SIXMONTH DOLLAR LIBOR GUARANTOR UNITED MEXICAN STATES FEES 025 NATIONWIDE BUILDING SOCIETY UK 150 MILLION OF 6125 EUROBONDS DUE NOV 15 1999 AT ISSUE PRICE 10075 VIA BARING BROTHERS & CO REOFFERED AT 992 TO YIELD 629 A SPREAD OF 45 BASIS POINTS ABOVE COMPARABLE GILT FEES 1875 NOMURA INTERNATIONAL PLC JAPANESE PARENT 100 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE FEB 10 2004 AT ISSUE AND REOFFER PRICE 996 FOR OWN ACCOUNT PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 0125 MINIMUM COUPON 5 FEES 025 QUEENSLAND TREASURY CORP AUSTRALIAN AGENCY 20 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 27 1999 AT ISSUE PRICE 10705 VIA NIKKO EUROPE PLC PAYABLE QUARTERLY AT THREEMONTH YEN LIBOR PLUS ONE LAUNCHED OFF BORROWER'S EUROMEDIUMTERM NOTE PROGRAM GUARANTOR QUEENSLAND FEES UNDISCLOSED REEMTSA FINANCE BV GERMAN PARENT 250 MILLION MARKS OF 6125 EUROBONDS DUE FEB 16 2001 AT ISSUE PRICE 1018 VIA DEUTSCHE BANK AG REOFFERED AT 9955 TO YIELD 621 GUARANTOR REEMTSA CIGARETTENFABRIKEN GMBH FEES 275 LESS 02 FOR LEAD MANAGER SANWA SHUTTER CORP JAPAN 460 MILLION OF 15 BONDS WITH EQUITY WARRANTS DUE FEB 3 1998 AT ISSUE PRICE PAR ISSUE SPLIT INTO 300 MILLION EUROTRANCHE VIA DAIWA EUROPE LTD AND 160 MILLION ASIAN TRANCHE VIA NOMURA SINGAPORE LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM FEB 17 TO JAN 20 1998 AT TERMS FIXED JAN 18 YESTERDAY'S CLOSING SHARE PRICE 909 YEN FEES 225 LESS 015 FOR LEAD MANAGER TAKARA STANDARD CO JAPAN 150 MILLION MARKS OF 125 EUROBONDS WITH EQUITY WARRANTS DUE FEB 3 1998 AT ISSUE PRICE PAR VIA YAMAICHI BANK GERMANY GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FEB 17 TO JAN 27 1998 FEES 225 UK PASSTHROUGH SECURITIES LTD SPECIALPURPOSE VEHICLE 250 MILLION ECU OF 55 SECURED EUROBONDS DUE FEB 21 2001 AT ISSUE PRICE 101175 VIA MORGAN STANLEY INTERNATIONAL LTD REOFFERED AT 996 TO YIELD 557 BONDS SECURED ON 250 MILLION ECU OF 9125 UK GOVERNMENT BONDS DUE FEB 21 2001 FEES 1875 9401130028 940113 DIVIDEND NEWS MARSHALL INDUSTRIES MARSHALL INDUSTRIES EL MONTE CALIF DECLARED A 2FOR1 SPLIT ON ITS COMMON STOCK PAYABLE FEB 28 TO STOCKHOLDERS OF RECORD FEB 14 IN ADDITION THE DISTRIBUTOR OF ELECTRONIC COMPONENTS AND TEST INSTRUMENTS SAID THE NUMBER OF AUTHORIZED SHARES WILL BE INCREASED TO 40 MILLION FROM 20 MILLION MARSHALL CURRENTLY HAS ABOUT 85 MILLION SHARES OUTSTANDING 9401130027 940113 TECHNOLOGY TIMES MIRROR PACIFIC TELESIS TEAM UP TO DEVELOP ELECTRONICSHOPPING SERVICE BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TIMES MIRROR CO CALIFORNIA'S LEADING NEWSPAPER PUBLISHER AND THE STATE'S LARGEST TELEPHONE COMPANY PACIFIC TELESIS GROUP UNVEILED A JOINT VENTURE FOR AN INFORMATION SERVICE THAT THEY PLAN TO BUILD INTO A HOMESHOPPING LANE OF THE NASCENT COMMUNICATIONS SUPERHIGHWAY THIS PARTNERSHIP WILL CREATE A POWERFUL NEW ELECTRONIC MARKETPLACE AN INTEGRATED SOURCE FROM WHICH CONSUMERS CAN QUICKLY AND EASILY GET INFORMATION ABOUT PRODUCTS AND SERVICES SAID RICHARD T SCHLOSBURG III PUBLISHER AND CHIEF EXECUTIVE OF THE LOS ANGELES TIMES TIMES MIRROR'S FLAGSHIP NEWSPAPER INITIALLY CONSUMERS IN THE LOS ANGELES AREA SEEKING INFORMATION ABOUT SUCH MUNDANE NEEDS AS USED CARS BANQUET FACILITIES OR HOTEL RATES WOULD BE ABLE TO OBTAIN LISTINGS BY PHONING THE SERVICE THE COMPANIES SAID THE SERVICE ALSO WILL BE ACCESSIBLE THROUGH HOME COMPUTERS AND OVER TIME WILL ADD INTERACTIVE TELEVISION AND OTHER EMERGING TECHNOLOGIES BUT BEYOND THE RATHER LOWTECH SHOPPING SERVICE THAT IS EXPECTED TO START IN NOVEMBER THE VENTURE WILL EXPLORE WAYS TO PROFITABLY EXPLOIT THE COMING SUPERHIGHWAY THE COMPANIES SAID SOME PRODUCT EXPERIMENTATION WILL BE SUCCESSFUL AND SOME WON'T WE HAVE A COMMITMENT TO REACT TO WHAT THE MARKETPLACE TELLS US SAID LEE CAMP VICE PRESIDENT OF SAN FRANCISCOBASED PACIFIC TELESIS'S PACIFIC BELL UNIT AND PRESIDENT OF A NEWLY CREATED SUBSIDIARY PACIFIC TELESIS ELECTRONIC PUBLISHING SERVICES FINANCING EMPLOYMENT PRICING AND OTHER SPECIFICS OF THE VENTURE WEREN'T DISCLOSED CONSUMERS AND ADVERTISERS WILL BOTH PAY SOMETHING TO USE THE SERVICE WHICH WILL HAVE ITS OWN FACILITIES AND STAFF EMPLOYEES WILL INCLUDE SHOPPING ASSISTANTS WHO WILL AT LEAST AT FIRST MANIPULATE THE ELECTRONIC DATABASE TO FIND ANSWERS TO CALLERS' QUESTIONS ANALYSTS SAID THE VENTURE WAS IN LINE WITH EXPERIMENTS UNDER WAY AT OTHER NEWSPAPERS HUNGRY TO GRAB A PIECE OF THE EMERGING MARKET FOR INTERACTIVE SHOPPING AND INFORMATION RETRIEVAL IN OCTOBER BELLSOUTH CORP AND COX NEWSPAPERS INC SAID THEY WOULD DEVELOP A FAMILY OF ELECTRONICINFORMATION SERVICES BASED ON NEWSPAPER CLASSIFIED AND YELLOWPAGES ADVERTISING ONE OF THE BIG QUESTIONS IS WE DON'T KNOW FOR SURE HOW MUCH OF A MARKET FOR ANY OF THIS THERE IS YET UNQUESTIONABLY THERE WILL BE SOME DAY BUT SO FAR THERE HASN'T BEEN ANY OVERWHELMING CONSUMER INTEREST SAID JOHN MORTON A WASHINGTONBASED ANALYST WITH THE INVESTMENT FIRM OF LYNCH JONES & RYAN SEVERAL NEWSPAPER COMPANIES INCLUDING TIMES MIRROR EXPERIMENTED WITH ELECTRONIC VIDEOTEXT SERVICES IN THE MID1980S THE SERVICES DIDN'T ATTRACT ENOUGH INTEREST AMONG CONSUMERS AND WERE QUIETLY SHUT DOWN A FEW YEARS LATER BUT ELECTRONIC SHOPPING MAY HAVE A BETTER SHOT AT SUCCESS MR MORTON SAID BECAUSE WE ARE CLEARLY CLOSER TO A TIME WHEN HOMES WILL BE CONNECTED INTERACTIVELY TO SOME KIND OF ELECTRONIC SYSTEMS 9401130026 940113 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BROWNINGFERRIS INDUSTRIES INC A SHELF OFFERING FOR UP TO 700 MILLION OF DEBT SECURITIES PREFERRED SHARES COMMON SHARES AND WARRANTS BEAR STEARNS SECURED INVESTORS INC A UNIT OF BEAR STEARNS COS A SHELF OFFERING FOR 2 BILLION OF COLLATERALIZED MORTGAGE OBLIGATIONS VIA BEAR STEARNS & CO CASE RECEIVABLES INC A UNIT OF TENNECO INC'S CASE CORP UNIT A SHELF OFFERING OF UP TO 1 BILLION OF ASSETBACKED NOTES AND ASSETBACKED CERTIFICATES ENRON CORP'S EOTT ENERGY PARTNERS LP AN OFFERING OF 10 MILLION COMMON UNITS REPRESENTING ENRON'S INTEREST IN THE PARTNERSHIP OF ABOUT 58 WITH AN OVERALLOTMENT OPTION OF 11 MILLION COMMON UNITS KOHL'S CORP AN OFFERING OF 4250000 COMMON SHARES WITH AN OVERALLOTMENT OPTION OF ADDITIONAL 637500 SHARES VIA MORGAN STANLEY & CO WILLIAM BLAIR & CO MONTGOMERY SECURITIES SMITH BARNEY SHEARSON INC AND ROBERT W BAIRD & CO PARCPLACE SYSTEMS INC AN INITIAL OFFERING OF 2030000 SHARES VIA ROBERTSON STEPHENS & CO WESTERN NATIONAL CORP A UNIT OF CONSECO INC AN OFFERING OF UP TO 150 MILLION OF SENIOR NOTES VIA MERRILL LYNCH & CO DEAN WITTER REYNOLDS INC GOLDMAN SACHS & CO 9401130025 940113 BUSINESS BRIEF PHILLIPS PETROLEUM CO EXIT FROM CATALYST BUSINESS IS SET FOLLOWING ASSET SALES PHILLIPS PETROLEUM CO SAID IT PLANS TO LEAVE THE CATALYST BUSINESS WITH THE SALE OF FACILITIES OWNED BY UNITS IN OHIO AND TEXAS PHILLIPS BARTLESVILLE OKLA RECENTLY COMPLETED THE SALE OF THE OPERATING ASSETS OF ITS AZTEC CATALYST CO UNIT TO LAPORTE INC THE US UNIT OF BRITAIN'S LAPORTE PLC AZTEC ELYRIA OHIO PRODUCES CATALYSTS USED IN THE PLASTICS INDUSTRY PHILLIPS ALSO SIGNED AN AGREEMENT TO SELL ITS CATALYST RESOURCES INC UNIT IN HOUSTON TO MALLINCKRODT SPECIALTY CHEMICALS CO OF ST LOUIS A UNIT OF IMCERA GROUP INC TERMS OF THE TWO SALES WEREN'T DISCLOSED PHILLIPS HAS BEEN TRYING TO IMPROVE FINANCIAL PERFORMANCE BY BOOSTING CASH FLOW REDUCING EXPENSES AND SELLING MORE THAN 600 MILLION OF ASSETS SINCE 1991 9401130024 940113 BUSINESS BRIEF FREEPORTMCMORAN COPPER & GOLD LOSS AT NEW UNIT TO HURT FOURTHQUARTER EARNINGS FREEPORTMCMORAN COPPER & GOLD INC SAID ITS NET INCOME FOR THE FOURTH QUARTER WAS 15 CENTS A SHARE THAT INCLUDES A LOSS OF 9 MILLION AT ITS RIO TINTO MINERA UNIT A NEWLY ACQUIRED SUBSIDIARY WHOSE PRINCIPAL ASSET IS A COPPER SMELTER IN SPAIN A YEAR EARLIER THE NEW ORLEANS AFFILIATE OF FREEPORTMCMORAN INC REPORTED NET INCOME OF 364 MILLION OR 17 CENTS A SHARE ON REVENUE OF 2087 MILLION FREEPORTMCMORAN COPPER & GOLD ALSO SAID THAT ITS PROVED AND PROVABLE RESERVES AT YEAREND 1993 INCREASED SIGNIFICANTLY OVER A YEAR EARLIER THE COMPANY SAID COPPER RESERVES INCREASED 28 TO 268 BILLION PAYABLE POUNDS GOLD ROSE 22 TO 291 MILLION PAYABLE OUNCES AND SILVER WAS UP 72 TO 767 MILLION PAYABLE OUNCES THESE NEW RESERVES WERE ADDED PRIMARILY AT THE GRASBERG DEPOSIT IN IRIAN JAYA INDONESIA 9401130023 940113 BUSINESS BRIEF SHL SYSTEMHOUSE INC STATE OF WISCONSIN PENSION FUND OPPOSES 2 PROPOSALS THE STATE OF WISCONSIN INVESTMENT BOARD SAID IT WILL OPPOSE AN EXECUTIVECOMPENSATION PLAN AND A PROPOSAL TO CREATE TWO NEW CLASSES OF STOCK AT SHL SYSTEMHOUSE INC OF OTTAWA THE MADISON WIS PENSION FUND WHICH OWNS ABOUT 91 OF THE COMPUTERSERVICE COMPANY'S 528 MILLION SHARES SAID THE TWO PROPOSALS TOGETHER COULD POTENTIALLY DILUTE THE HOLDINGS OF SHL STOCKHOLDERS BY ABOUT 375 OVER THE NEXT THREE YEARS I'VE NEVER SEEN A PLAN WITH THIS MUCH DILUTION IN IT OVER SUCH A SHORT PERIOD OF TIME SAID JOHN NELSON DIRECTOR OF INVESTMENTS FOR THE PENSION FUND SHAREHOLDERS ARE TO VOTE ON THE PROPOSALS AT THE FEB 17 ANNUAL MEETING JOHN R OLTMAN CHAIRMAN OF SHL DEFENDED THE COMPENSATION PLAN CALLING IT CRITICAL TO THE COMPANY'S SUCCESS IN ITS PROXY MATERIALS SHL SYSTEMHOUSE SAID IT COULD SAVE 21 MILLION DURING THE NEXT THREE YEARS BY REPLACING ITS CURRENT CASHINCENTIVE AND STOCKOPTION PLANS WITH A PROPOSED EXECUTIVE EQUITY PLAN MR OLTMAN CALLED CRITICISM OF THE PROPOSED TWO NEW CLASSES OF STOCK UNFOUNDED 9401130022 940113 BUSINESS BRIEF LADD FURNITURE INC COMPANY EXPECTS TO REPORT MODEST' FOURTHPERIOD LOSS LADD FURNITURE INC HIGH POINT NC SAID IT EXPECTS TO REPORT A MODEST LOSS FOR THE FOURTH QUARTER COMPARED WITH THE PROFIT OF FIVE CENTS TO SIX CENTS A SHARE EXPECTED BY ANALYSTS LADD'S CHAIRMAN RICHARD R ALLEN SAID SALES IN THE FINAL QUARTER DROPPED TO 124 MILLION FROM 129 MILLION IN THE YEAREARLIER PERIOD FOR WHICH THE COMPANY REPORTED NET INCOME OF 15 MILLION OR SIX CENTS A SHARE LADD ATTRIBUTED THE SLUMP TO FEWER PRODUCT LINES MANUFACTURING INEFFICIENCIES AND SLOW SALES OF ITS HIGHERPRICED PENNSYLVANIA HOUSE LINE MR ALLEN SAID THE SLOWDOWN IS TEMPORARY AND THAT STRONG HOUSING GROWTH AND REBOUNDING CONSUMER CONFIDENCE WILL BRING THE COMPANY BACK TO PROFITABILITY THIS YEAR ON THE NASDAQ STOCK MARKET LADD SHARES CLOSED AT 10125 DOWN 1375 OR 12 9401130021 940113 BUSINESS BRIEF WR GRACE & CO PARTIAL REVERSAL OF CHARGE LEADS TO 4THQUARTER CREDIT WR GRACE & CO SAID IT EXPECTS TO REPORT A FOURTHQUARTER CREDIT OF 200 MILLION RESULTING FROM THE PARTIAL REVERSAL OF A CHARGE IT HAD TAKEN FOR ASBESTOS LITIGATION THE SPECIALTY CHEMICAL AND HEALTHCARE COMPANY BASED IN BOCA RATON FLA SAID IT DECIDED TO POST THE CREDIT AFTER A FEDERAL APPEALS COURT AGREED TO REHEAR A DECISION THAT PROMPTED THE COMPANY TO TAKE A 300 MILLION CHARGE IN THE FIRST PLACE AT THAT TIME GRACE SAID THE CHARGE WAS NECESSARY AFTER THE US COURT OF APPEALS FOR THE SECOND CIRCUIT IN SEPTEMBER REVERSED A LOWERCOURT RULING ON A TRIGGER DATE FOR CALCULATING ASBESTOS PROPERTY DAMAGE THE APPEALS COURT RULED THAT INSURANCE COVERAGE BEGINS WHEN ASBESTOSCONTAINING MATERIAL WAS INSTALLED RATHER THAN WHEN IT WAS DISCOVERED AS LOWER COURTS HAD RULED THE APPEALSCOURT RULING LED GRACE TO TAKE THE 300 MILLION CHARGE TO REFLECT A REDUCTION IN ITS INSURANCE COVERAGE FOR ASBESTOS DAMAGE CLAIMS 9401130020 940113 BUSINESS BRIEF WRT ENERGY CORP STOCK SWAP IS SET FOR STAKE IN OIL AND GAS PROPERTIES WRT ENERGY CORP SAID IT SIGNED A LETTER OF INTENT WITH TEXAS AMERICAN RESOURCES INC TO SWAP 17 MILLION SHARES OF WRT'S RESTRICTED COMMON STOCK FOR A WORKING INTEREST IN CERTAIN PRODUCING OIL AND GAS PROPERTIES IN CAMERON PARISH LA YESTERDAY IN NASDAQ STOCK MARKET TRADING WRT'S STOCK CLOSED AT 1150 UP 50 CENTS GIVING THE TRANSACTION AN INDICATED VALUE OF 196 MILLION THE TRANSACTION WILL INCREASE WRT'S PROVED OIL AND GAS RESERVES TO 45 BILLION CUBIC FEET OF OIL EQUIVALENTS FROM 184 BILLION THE PRODUCING PROPERTIES INCLUDE 3500 GROSS ACRES OF OIL AND GAS LEASES 27 PRODUCTIVE WELLS AND 60 SHUTIN WELLS CURRENT DAILY PRODUCTION ON THE PROPERTIES IS ABOUT 600 BARRELS OF OIL EQUIVALENTS WRT BASED IN THE WOODLANDS TEXAS SAID IT EXPECTS THE SALE TO CLOSE JAN 20 WITH JAN 1 BEING THE EFFECTIVE DATE 9401130019 940113 WHO'S NEWS IBM'S METAPHOR CUTS STAFF MOUNTAIN VIEW CALIF INTERNATIONAL BUSINESS MACHINES CORP'S METAPHOR INC UNIT SAID IT WILL SHED 80 EMPLOYEES 20 OF ITS WORK FORCE AS PART OF A RESTRUCTURING THAT IS SEPARATE FROM IBM OVERALL METAPHOR A SOFTWARE SUBSIDIARY THAT IBM PURCHASED IN 1991 ALSO NAMED CHRIS GREJTAK 43 YEARS OLD CURRENTLY A SENIOR VICE PRESIDENT PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS CATHIE SELLECK 60 WHO IS RETIRING MR GREJTAK SAID IN AN INTERVIEW THAT THE STAFF REDUCTIONS WILL AFFECT MOST AREAS OF THE COMPANY RELATED TO ITS EARLY PROPRIETARY SOFTWARE PRODUCTS METAPHOR KNOWN FOR A PRODUCT CALLED DIS DATA INTERPRETATION SYSTEM HAS CHANGED ITS PRODUCT LINE TO BE LESS PROPRIETARY AND IS ABLE TO PARE BACK ON STAFF AS A RESULT HE SAID 9401130018 940113 SCANAWESTINGHOUSE SETTLEMENT COLUMBIA SC SOUTH CAROLINA ELECTRIC & GAS CO THE PRINCIPAL SUBSIDIARY OF SCANA CORP SAID IT REACHED A SETTLEMENT WITH WESTINGHOUSE ELECTRIC CORP RESOLVING A DISPUTE INVOLVING STEAM GENERATORS PROVIDED BY WESTINGHOUSE TO SCE&G'S VC SUMMER NUCLEAR STATION TERMS OF THE SETTLEMENT WEREN'T DISCLOSED SCE&G HAD FILED AN ACTION IN MAY 1990 AGAINST WESTINGHOUSE IN FEDERAL COURT IN SOUTH CAROLINA SEEKING COMPENSATION FOR DAMAGES TO THE SUMMER STATION 9401130017 940113 PROFITS OF PEACE EVEN SYRIAN MERCHANTS ARE NOW READY TO DO BUSINESS WITH ISRAEL DAMASCUS'S ROLE IS CRUCIAL CAN CLINTON TALK ASSAD INTO MAKING FIRST MOVE ISRAELIS ARE NOT ANIMALS' BY ROBERT S GREENBERGER AND PETER WALDMAN STAFF REPORTERS OF THE WALL STREET JOURNAL DAMASCUS SYRIA BADREDDIN CHALLAH THE 88YEAROLD PATRIARCH OF SYRIA'S MOST VENERABLE BUSINESS CLAN GREW RICH AMID BOGGLING CHANGE HE BEGAN GROWING CITRUS WHEN THE OTTOMAN TURKS RULED SYRIA FLOURISHED UNDER FRENCH COLONIALISM AND BECAME A CONFIDANT OF PRESIDENT HAFEZ ALASSAD WHO LIVES TWO BLOCKS AWAY IN THE CAPITAL'S ELEGANT MALKI NEIGHBORHOOD SITTING AMID GILDED LOUIS XIV FURNITURE AND STERN PORTRAITS OF ANCESTORS IN MAROON FEZ HATS MR CHALLAH IS ANTICIPATING THE NEXT EPIC CHANGE IN THE MIDDLE EAST WHEN YOU HAVE NEIGHBORS AND THERE IS WAR YOU DON'T DEAL WITH THEM AT ALL HE SAYS REFERRING TO ISRAEL BUT YOU CAN IMAGINE WHAT THE BENEFITS WILL BE WHEN THERE IS PEACE AND YOU HAVE BUSINESS WITH YOUR NEIGHBOR HE TALKS OF A CHANGING WORLD IN WHICH OLD ENEMIES LIKE GERMANY AND FRANCE NOW ARE ECONOMICALLY ENTWINED SO WHAT'S THE DIFFERENCE BETWEEN US AND THE ISRAELIS THAT WE SHOULDN'T BECOME FRIENDS AND WORK TOGETHER SUCH THOUGHTS ONCE WERE NEVER EVEN WHISPERED IN HARDLINE SYRIA NOW PRESIDENT CLINTON WANTS TO HEAR THEM FROM THE CAUTIOUS AND WILY MR ASSAD AT A SUMMIT MEETING THIS WEEKEND IN GENEVA MR CLINTON WILL URGE THE SYRIAN LEADER TO END A LONG SYRIAISRAEL NEGOTIATING STALEMATE BY DESCRIBING WHAT KIND OF PEACE HE WOULD OFFER ISRAEL IN EXCHANGE MR CLINTON WILL DANGLE BEFORE MR ASSAD WHOSE NATION IS ON THE US TERRORISM LIST THE PROSPECT OF IMPROVED USSYRIAN RELATIONS MR ASSAD HAS DEMANDED THAT ISRAEL FIRST DECLARE THAT IT WILL WITHDRAW FROM THE GOLAN HEIGHTS BEFORE HE TALKS ABOUT PEACE ISRAEL INSISTS THAT MR ASSAD GO FIRST WHAT THE US ALSO WANTS FROM MR ASSAD IS SOME PUBLIC GESTURE TOWARD ISRAEL THAT WILL LOOSEN THE IMPASSE SYRIA IS THE LINCHPIN OF ARABISRAELI PEACE FROM DAMASCUS THE HISTORIC CAPITAL OF ARAB NATIONALISM MR ASSAD HAS LOOMED LARGE FOR A QUARTERCENTURY AS ISRAEL'S IMPLACABLE FOE SENDING HIS ARMIES TO WAR AGAINST THE JEWISH STATE IN 1973 TO TRY TO RECOVER HIS LAND WHEN EGYPT MADE PEACE WITH ISRAEL IN 1979 MR ASSAD REFUSED TO SET FOOT IN THAT ARAB STATE FOR A DECADE NO ONE IN THE MIDDLE EAST WOULD DOUBT THE CRUCIAL CHARACTER OF SYRIA TO A COMPREHENSIVE PEACE SAYS SECRETARY OF STATE WARREN CHRISTOPHER EVEN AS MR ASSAD IS HESITATING MR CHALLAH SEEMS A RELIABLE BAROMETER OF THE SEA CHANGE UNDER WAY IN MUCH OF THE ARAB WORLD THE 45YEAR DEMONIZATION OF ISRAEL APPEARS TO HAVE RUN ITS COURSE OVERTURES TO ISRAEL ARE NOW COMING FROM ENTREPRENEURS IN JORDAN THE RESOURCERICH PERSIAN GULF AND ARAB NORTH AFRICA AS THE REST OF THE WORLD FORMS REGIONAL ECONOMIC BLOCS MIDDLE EASTERNERS INCREASINGLY SEE THE BENEFITS OF REGIONAL TRADE AND THE LOWERING OF BARRIERS NONE OF WHICH CAN HAPPEN IF PEACE IS POSTPONED FURTHER THERE IS TALK OF A WORLD BANKFINANCED HIGHWAY CONNECTING ARAB STATES AND ISRAEL AND THROUGHOUT THE ARAB WORLD PEOPLE ARE REALIZING THAT PEACE WILL BRING STABILITY AND STABILITY WILL BRING BADLY NEEDED INVESTMENT THESE ECONOMIC HOPES PROVIDE AN UNDERGIRDING FOR THE PEACE TALKS THAT ENSURES THEY WILL PROCEED DESPITE INEVITABLE UPS AND DOWNS THE CHANGE BEGAN IN 1991 WHEN ARABS AND ISRAELIS AGREED TO MEET AT THE NEGOTIATING TABLE FOR THE FIRST TIME AND ACCELERATED LAST SEPTEMBER WHEN ISRAELI PRIME MINISTER YITZHAK RABIN AND PALESTINE LIBERATION ORGANIZATION LEADER YASSER ARAFAT SHOOK HANDS ON THE WHITE HOUSE LAWN I SEE MORE AND MORE ACTIVITY GOING ON OPENLY BUT IN A VERY LOWPROFILE WAY BETWEEN ARABS AND ISRAELIS SAYS BENJAMIN GAON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KOOR INDUSTRIES ISRAEL'S LARGEST CONGLOMERATE A WEALTHY JORDANIAN SHIPPINGCOMPANY OWNER RECENTLY VISITED ISRAEL TO DISCUSS JOINT VENTURES WITH A MAJOR CONTAINER COMPANY AND ISRAEL'S EL AL AIRLINE MOROCCO WHOSE MERCHANTS SELL ISRAELIGROWN TOMATOES IN EUROPE EXPECTS TO HOST 100000 ISRAELI TOURISTS THIS YEAR IN SAUDI ARABIA WEALTHY TRADERS TALK PRIVATELY ABOUT PARTNERSHIPS IN MUSLIM CENTRAL ASIA WITH THE ISRAELIS WHO ARE MAKING INROADS THERE BUSINESS EXECUTIVES IN TIGHTLY CONTROLLED SYRIA ARE HESITANT TO TAKE SUCH OVERT STEPS BUT EVEN HERE WHERE PEOPLE LANGUISH IN JAIL FOR EXPRESSING OBJECTIONABLE VIEWS AND THE WORD ISRAEL WASN'T MENTIONED IN THE PRESS UNTIL 1991 SOME PROMINENT CITIZENS FEEL COMFORTABLE TALKING ABOUT RECONCILIATION LET US TEACH OUR KIDS THAT THE ISRAELIS ARE NOT ANIMALS AND LET THE ISRAELIS TEACH THEIR KIDS THAT WE ARE NOT ANIMALS SAYS MUHAMMAD AZIZ SHUKRI DEAN OF THE LAW SCHOOL AT DAMASCUS UNIVERSITY UP TO NOW UNFORTUNATELY OUR BEHAVIOR IS OF ANIMALS IN THE ZOO PUSHING SYRIANISRAELI PEACE IS A TOP US PRIORITY WITH RUSSIA LOOKING PRECARIOUS AND HAITI BOSNIA AND SOMALIA SUNK IN QUAGMIRES MR CLINTON BADLY NEEDS A FOREIGNPOLICY VICTORY HIS MIDEAST ADVISERS BELIEVE THE TIME IS RIPE FOR A DEAL MEANWHILE MR ASSAD'S WORLD VIEW HAS BEEN JOSTLED BY THE COLLAPSE OF HIS SUPERPOWER PATRON THE SOVIET UNION AS SYRIA'S SOVIETMADE MILITARY INVENTORY DETERIORATES TALKS WITH THE RUSSIANS ABOUT BUYING SPARE PARTS DRAG ON ENDLESSLY DIPLOMATS SAY BECAUSE NO ONE IN MOSCOW IS LISTENING GONE TOO IS THE BARTER TRADE WITH THE SOVIET BLOC THAT ONCE KEPT SYRIAN TEXTILE PHARMACEUTICAL AND COSMETIC FACTORIES HUMMING AND PAID FOR MR ASSAD'S WEAPONS PURCHASES BUT WHILE THE ECONOMIES OF CUBA AND NORTH KOREA ARE WITHERING IN THE POSTSOVIET WORLD SYRIA IS LOOKING TO IMPROVE TIES WITH THE WEST SYRIAN BUSINESSES HAVING LOST SOVIET MARKETS SEE OPPORTUNITIES IN THE WEST AND THE DAMASCUS GOVERNMENT IS BEGINNING TO LOOSEN UP ENOUGH FOR BUSINESSES TO REACH OUT LAST YEAR BUSINESSES WON THE RIGHT TO OWN FAX MACHINES THIS YEAR COMPANIES ARE PUSHING FOR SATELLITE DISHES UNDERLYING THE BUSINESS ACTIVITY IS AN ASSUMPTION OF PEACE PEACE MEANS RELATIONS IN ALL FIELDS BUSINESS AND OTHERWISE SAYS HISBAM ALHAMWY GENERAL DIRECTOR OF THE DAMASCUS CHAMBER OF COMMERCE WHAT'S UNCLEAR IS JUST HOW FAR THE AUTHORITARIAN MR ASSAD IS WILLING TO GO IN LOOSENING GOVERNMENT CONTROL ALTHOUGH HE HAS PLAYED A WEAK HAND SHREWDLY MR CLINTON'S INVITATION TO MEET IN GENEVA ATTESTS TO THAT MR ASSAD REMAINS A 1950SSTYLE DICTATOR HIS PICTURE ADORNS PRACTICALLY EVERY DOWNTOWN BUILDING HERE AND THERE ARE HUGE STALINLIKE STATUES OF HIM ALONG MAJOR HIGHWAYS TAXICABS DISPLAY BUMPER STICKERS SHOWING A RED HEART ALONGSIDE A LIKENESS OF MR ASSAD ELSEWHERE IN THE ARAB WORLD BUSINESSMEN ARE POISED FOR PEACE WAITING FOR THE POLITICIANS TO CATCH UP IN HIS OFFICE IN AMMAN JORDAN DAWUD QUTUB OWNER OF A LARGE SHIPPING AGENCY USES A BIG WORLD MAP ON THE WALL TO TRACE THE ROUTE OF A SHIP BOUND FOR THE PERSIAN GULF FROM EUROPE VIA THE SUEZ CANAL AT THE NORTHEAST TIP OF AFRICA HE STOPS FROM THE SUEZ TO KUWAIT HE EXPLAINS IS A NINEDAY SAIL PLUS THE EXPENSE OF EGYPT'S EVERRISING CANAL FEES BUT FROM HAIFA IN ISRAEL TO KUWAIT A 72HOUR TRUCK RIDE I BELIEVE THAT ONCE THE PEACE IS SIGNED A BOOM WILL HIT THE TRIANGLE OF NATIONS JORDAN ISRAEL AND PALESTINE THAT WILL LAST FOR 10 YEARS GUSHES MR QUTUB A PALESTINIAN REFUGEE MR QUTUB IN NOVEMBER TRAVELED TO ISRAEL USING A FAMILYVISIT VISA AND MET WITH OFFICIALS AT ZIM SHIPPING LINES IN HAIFA WHERE HE TOUTED HIS COMPANY INTERNATIONAL FREIGHT SERVICES & TRADING CO AS ZIM'S JORDAN AGENT HE ALSO MET WITH OFFICIALS OF EL AL AND UNITOURS A LARGE TOUR OPERATOR IN TEL AVIV TO DISCUSS OTHER VENTURES THE ISRAELIS TALKED ABOUT THEIR MASTER PEACE PLAN TO UNITE THE TWIN RED SEA PORTS OF AQABA IN JORDAN AND EILAT IN ISRAEL MR QUTUB TOURED THE ISRAELI HIGHWAY NETWORK ASTONISHING HE SAYS THEN HE DISCOVERED SOMETHING EVEN MORE SURPRISING MR QUTUB VISITED THE HOME HE FLED AS A 16YEAROLD DURING THE 1948 ARABISRAELI WAR MOROCCAN JEWS NOW LIVE THERE WHEN HE KNOCKED ON THEIR DOOR AND TOLD HIM WHO HE WAS THEY ASKED HIM IF HE WANTED TO STAY THERE DURING HIS VISIT OTHER JORDANIANS ARE PREPARING THEMSELVES FOR SIMILAR CLOSE ENCOUNTERS WITH ISRAELIS IN A TINY CLASSROOM AT THE ALJALIL RESEARCH CENTER NEAR JORDAN UNIVERSITY NEARLY 300 BUSINESSMEN NURSES ENGINEERS LAWYERS COLLEGE STUDENTS AND OTHERS HAVE STUDIED HEBREW OVER THE PAST TWO YEARS THEY EACH PAY THE EQUIVALENT OF ABOUT 90 READING ALOUD FROM THE SAME HEBREW BOOKS USED TO TEACH RUSSIAN IMMIGRANTS IN ISRAEL WHERE ARE YOU FROM MENASHE ASKS ONE LESSON I'M FROM KISHNIEV AND WHERE ARE YOU FROM ESTHER I'M FROM SIBERIA AND WHERE IS THE CENTER'S OWNER GHAZI ALSADI FROM ISRAEL ORIGINALLY AN ISRAELI ARAB HE WAS KICKED OUT FOR SUBVERSIVE ACTIVITIES IN 1977 AMONG OTHER THINGS HE NOW DISTRIBUTES ARABIC TRANSLATIONS OF THE HEBREW PRESS TO GOVERNMENT OFFICES BANKS AND PRIVATE COMPANIES THROUGHOUT THE ARAB WORLD RECENTLY SOME ARAB CLIENTS MR SADI WON'T NAME COMMISSIONED STUDIES OF THE ISRAELI BANKING CONSTRUCTION AND AGRICULTURAL INDUSTRIES THE CENTER'S BIGGEST JOB THOUGH HAS JUST COME FROM THE JORDANIAN GOVERNMENT THE KINGDOM'S CUSTOMS AUTHORITY HAS HIRED ALJALIL TO TRANSLATE ISRAEL'S ENTIRE 1800PAGE MANUAL OF TRADE REGULATIONS SIMILAR PLANNING FOR THE FUTURE IS UNDER WAY EVEN IN ARCHCONSERVATIVE SAUDI ARABIA ACCORDING TO DIPLOMATS DURING THE PERSIAN GULF WAR SAUDI ARABIA CUT OFF ITS PURCHASES OF CITRUS PRODUCTS FROM JORDAN TO PUNISH THAT NATION FOR ITS SUPPORT OF IRAQ'S SADDAM HUSSEIN THE SAUDIS BEGAN BUYING CITRUS FROM CALIFORNIA BUT NOW SOME MERCHANTS TALK PRIVATELY ABOUT THE ADVANTAGES OF BUYING THESE FRUITS FROM NEARBY ISRAEL THE FRUIT PURCHASES WOULD BE PART OF A LARGER TRADING RELATIONSHIP THAT IS BEGINNING TO EVOLVE THERE HAVE BEEN SECRET DISCUSSIONS BETWEEN THE HEAD OF THE SAUDI ARABIAN CHAMBER OF COMMERCE AND HIS ISRAELI COUNTERPART ACCORDING TO DIPLOMATS ONE IDEA BEING MULLED BY SAUDI ENTREPRENEURS WOULD INVOLVE A JOINT VENTURE WITH THE ISRAELIS IN CENTRAL ASIAN REPUBLICS OF THE FORMER SOVIET UNION ISRAEL ALREADY HAS SENT TRADE MISSIONS TO SEVERAL OF THE CENTRAL ASIAN NATIONS TO SELL AGRICULTURAL TECHNOLOGY MOST OF THE CENTRAL ASIAN STATES DON'T HAVE SUFFICIENT CASH TO PAY FOR SUCH PRODUCTS BUT SOME SAUDI MERCHANTS IN JEDDAH ENVISION SETTING UP JOINT VENTURES WITH THE ISRAELIS UNDER WHICH THE SAUDI PARTNER WOULD TAKE COMMODITIES AS PAYMENT AND TRADE THEM ELSEWHERE AMONG PERSIAN GULF STATES QATAR HAS HAD THE MOST OPEN TIES WITH ISRAEL IN SEPTEMBER QATAR'S FOREIGN MINISTER MET ISRAELI FOREIGN MINISTER SHIMON PERES IN NEW YORK MR PERES WAS TOLD THAT ONCE ARABISRAELI PEACE IS ACHIEVED THE SKY'S THE LIMIT ON RELATIONS ACCORDING TO ONE DIPLOMAT QATAR WHICH HAS THE WORLD'S SECONDLARGEST NATURALGAS RESERVES WOULD CONSIDER A JOINT VENTURE TO TRANSPORT ITS NATURAL GAS BY PIPELINE ACROSS SAUDI ARABIA TO ISRAEL WHERE IT WOULD BE LIQUEFIED AND SHIPPED ACROSS THE MEDITERRANEAN TO EUROPE FEASIBILITY STUDIES FOR SUCH A PROJECT ALREADY ARE UNDER WAY UNLIKE SOME OF THEIR ARAB COLLEAGUES SYRIAN BUSINESSMEN STILL AREN'T WILLING TO TALK OPENLY ABOUT PLANS WITH ISRAEL BUT ONE YOUNG ENTREPRENEUR SAYS ANONYMOUSLY THAT HE BELIEVES THERE COULD BE A MARKET FOR SUCH LOWTECH PRODUCTS AS CANNED GOODS SOCKS AND SOAP SITTING BEHIND A DESK WITH A PERSONAL COMPUTER AND A NO SMOKING SIGN TWO RARITIES HERE HE SAYS THAT WITH AN OFFICIAL MINIMUM WAGE OF 30 A MONTH FOR A SIXDAY WORKWEEK SYRIA SHOULD BE ABLE TO COMPETE ON LOWCOST ITEMS OTHER SYRIAN EXECUTIVES FIGURE A PEACE DIVIDEND COULD HELP PAY FOR IMPROVEMENTS IN THE COUNTRY'S ROADS ELECTRICAL SYSTEM AND TELEPHONE NETWORK SAEB NAHAS WHO WORKS BEHIND A HUGE DESK THAT HOLDS EIGHT TELEPHONES WITH DIRECT LINES TO THE 26 COMPANIES HE RUNS SAYS FOR 40 YEARS SYRIA HAS BEEN USING SOMETHING LIKE 60 OF ITS BUDGET FOR DEFENSE AS A RESULT SAYS MR NAHAS ONE OF SYRIA'S RICHEST ENTREPRENEURS THERE ARE CHRONIC SHORTAGES OF FOREIGN EXCHANGE AND A PAUCITY OF THE CAPITAL SPENDING NEEDED FOR ROADS MODERN AIRPORTS AND THE FACILITIES TO GENERATE MORE ELECTRICITY POWER OUTAGES OCCUR EVERY DAY IN DAMASCUS FOR NOW THOUGH EVERYONE IS WAITING FOR MR ASSAD US OFFICIALS KNOW THAT AFTER THE SURPRISE SIGNING OF THE ISRAELIPALESTINIAN PEACE ACCORD IN SEPTEMBER MR ASSAD TOLD MILITARY AND BAATH PARTY LEADERS THAT THE TIME HAD COME TO TALK ABOUT MAKING PEACE WITH ISRAEL BUT US OFFICIALS ARE UNSURE IF HE IS WILLING TO OFFER A DEAL THAT MR RABIN CAN SELL IN ISRAEL IN MEETINGS WITH MR CHRISTOPHER AND US AIDES MR ASSAD ASKS PROBING QUESTIONS ABOUT ISRAELI POLITICS AND ON ONE OCCASION DISPLAYED DETAILED KNOWLEDGE OF POLITICAL REPORTS FROM RELATIVELY OBSCURE ISRAELI NEWSPAPERS US OFFICIALS BELIEVE THAT MR ASSAD UNDERSTANDS THAT HE CAN MAKE A DEAL WITH MR RABIN AND THAT IF THE HARDLINE LIKUD PARTY RETURNS TO POWER THE OPPORTUNITY MAY BE LOST NOW THE US IS TRYING TO CONVINCE MR ASSAD TO OFFER TERMS THAT WILL BOLSTER MR RABIN FOR WHOM RETURNING THE GOLAN TO SYRIA WILL BE A HARD SELL AT HOME OTHER SIGNALS DRIBBLE OUT IN THE STATECONTROLLED SYRIAN PRESS LAST MONTH FOR INSTANCE SYRIAN PAPERS RAN A BRIEF STORY SAYING THAT MOROCCO WAS ON THE VERGE OF OPENING DIPLOMATIC TIES WITH ISRAEL THE STORY CONTAINED NEITHER CRITICISM NOR COMMENTARY BY CONTRAST IN 1986 WHEN WORD LEAKED THAT MOROCCO'S KING HASSAN HAD MET WITH ISRAEL'S MR PERES SYRIA SEVERED RELATIONS WITH MOROCCO HERE IN DAMASCUS THERE IS A FEELING THAT THE DECISION FOR PEACE HAS BEEN MADE AND THAT ALL THAT REMAINS TO BE WORKED OUT ARE THE DETAILS IT'S A POKER GAME AND THIS SON OF A GUN MR ASSAD KNOWS HOW TO PLAY THE GAME SAYS MR SHUKRI OF DAMASCUS UNIVERSITY 9401130016 940113 MUTUAL FUNDS SEC FOCUSES ON PERSONAL TRADES AT FUNDS BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION STAFF APPEARS TO BE GIVING CLOSER SCRUTINY TO PERSONAL STOCK TRADING BY MUTUALFUND MANAGERS NATIONWIDE LAST WEEK'S FIRING OF STAR MANAGER JOHN KAWESKE FOR ALLEGEDLY FAILING TO TELL HIS EMPLOYER INVESCO FUNDS GROUP ABOUT PERSONAL STOCK TRADES MAY BE JUST THE TIP OF THE ICEBERG WHEN IT COMES TO POSSIBLE ABUSES OF PERSONAL TRADING ANY QUESTION IN ANY FUND HAS TO STRIKE FEAR INTO THE HEART OF THE FUND INDUSTRY SAYS BARRY BARBASH DIRECTOR OF THE SEC'S DIVISION OF INVESTMENT MANAGEMENT IN WASHINGTON IT GOES TO THE HEART OF THE FIDUCIARY RESPONSIBILITY ANOTHER SEC OFFICIAL SAYS WHEN SOMETHING LIKE THIS HAPPENS THERE IS A LOT OF ACTIVITY TO FIND OUT HOW WIDESPREAD IT IS EVERYBODY IS EXAMINING THEIR REGION TO FIND OUT WHAT EXACTLY IS HAPPENING THE SCRUTINY CHALLENGES A LONGSTANDING FUND INDUSTRY PRACTICE OF TAKING PERSONAL TRADING AS A POINT OF PRIDE AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUALFUND GROUP MOST PORTFOLIO MANAGERS MAYBE ALL OF THEM BUY AND SELL STOCKS FOR THEIR OWN ACCOUNT SAYS STUART WILLIAMSLEY A FORMER FIDELITY FUND MANAGER WHO IS NOW STARTING A PRIVATESCHOOL COMPANY ON THE WEST COAST IT'S ENCOURAGED IT'S PART OF THE CULTURE THE FIRM FEELS INVESTING YOUR OWN MONEY IS EDUCATIONAL HE ADDS IT'S ALWAYS BEEN ONE OF THE PRINCIPAL ASPECTS OF THE CULTURE THAT PEOPLE TRADED AGGRESSIVELY FOR THEIR OWN ACCOUNTS MR WILLIAMSLEY SAID THERE IS TALK AT FIDELITY THAT THREE FUND MANAGERS WERE TAKEN TO THE WOODSHED IN LATE 1993 FOR PERSONAL TRADES THAT VIOLATED THE SPIRIT IF NOT THE LETTER OF FIDELITY'S ETHICS CODE HE DECLINED TO IDENTIFY THE MANAGERS WILLIAM HAYES MANAGING DIRECTOR AND HEAD OF THE EQUITIES GROUP AT FIDELITY SAID WE HAVE SEEN NO EVIDENCE OF THIS HAPPENING THE ALLEGATION ABOUT WHAT THREE OF OUR FUND MANAGERS HAVE DONE HE ADDED WE HAVE TAKEN SOME DISCIPLINARY ACTIONS IN THE PAST BUT I'M NOT GOING TO DISCUSS THE PARTICULARS FIDELITY TIGHTENED ITS PERSONALTRADING RULES IN NOVEMBER AND ONE FUND MANAGER AT FIDELITY SAYS HE EXPECTS TO SEE EVEN STRICTER STANDARDS IN THE NEAR FUTURE THE RULES ARE MEANT TO DISCOURAGE ABUSES SUCH AS FRONTRUNNING TRADING IN A STOCK THAT MIGHT BE AFFECTED SOON AFTERWARD BY A POWERFUL FUND'S BUYING OR SELLING FUND INDUSTRY EXECUTIVES DIDN'T PAY MUCH ATTENTION TO PERSONAL TRADING AS AN ETHICAL ISSUE BEFORE 1993 BUT NOW ALL THAT HAS CHANGED THE MUTUALFUND INDUSTRY IS WORRIED ITS CHIEF TRADE GROUP THE INVESTMENT COMPANY INSTITUTE IS CIRCULATING A 60PAGE NEWANDIMPROVED MANUAL ON HOW TO WRITE A CODE OF ETHICS THE REVISED TOME DRAFTING GUIDES FOR CODES OF ETHICS AND PROCEDURES TO PREVENT INSIDER TRADING HAS BEEN MAKING THE ROUNDS FOR MONTHS SINCE WELL BEFORE LAST WEEK'S OUSTER OF MR KAWESKE BY DENVERBASED INVESCO THE SEC USED TO DEVOTE MORE TIME AND ATTENTION TO MONEYMARKET FUNDS SAYS THE AGENCY'S MR BARBASH AT THESE HUMDRUM CASHLIKE FUNDS PERSONAL TRADING WASN'T MUCH OF AN ISSUE BUT NOW UNDER CHAIRMAN ARTHUR LEVITT THE SEC HAS DECIDED THAT ITS INSPECTION FOCUS NEEDED TO BE SHIFTED TO STOCK AND BOND FUNDS INCLUDING SMALLER FUND GROUPS AND NEWCOMERS MR BARBASH SAYS THESE UPSTARTS AND LITTLE FUND COMPANIES DIDN'T ALWAYS GET SUCH A CLOSE LOOK IN THE PAST THE SEC'S NEW MOOD HASN'T ESCAPED NOTICE AT FUND COMPANIES ONE COMPANY IN THE MIDST OF AN OTHERWISEROUTINE SEC EXAM WAS SURPRISED TO BE ASKED FOR 1 1/2 YEARS OF RECORDS OF PERSONAL TRADES BY PORTFOLIO MANAGERS A LAWYER SAYS THE SEC IS ALSO SCRUTINIZING RELATED QUESTIONS SUCH AS HOW MONEY MANAGERS ALLOCATE THE DAILY BLIZZARD OF STOCK TRADES AMONG THE VARIOUS ACCOUNTS THEY MANAGE INCREASINGLY FUND MANAGERS DO DOUBLE TRIPLE OR QUADRUPLE DUTY MANAGING SEPARATE ACCOUNTS FOR PENSION FUNDS PRIVATE INDIVIDUALS THEIR OWN ACCOUNTS OR PROFITSHARING PLANS FOR THEIR EMPLOYERS KEMPER CORP LAST FALL AGREED TO PAY MORE THAN 9 MILLION TO SETTLE CIVIL SEC CHARGES THAT ONE OF ITS MUTUAL FUND MANAGERS HAD GIVEN WINNING TRADES TO A KEMPER PROFITSHARING PLAN WHILE DUMPING LOSING TRADES IN TWO KEMPER MUTUAL FUNDS MUTUAL FUNDS ARE AN INCREASINGLY PREFERRED VEHICLE FOR INDIVIDUAL INVESTORS SO WE WILL BE SPENDING MORE OF OUR LIMITED RESOURCES ON AREAS SUCH AS FUNDMANAGER TRADING AND ALLOCATION SAYS SEC COMMISSIONER J CARTER BEESE JR HE SAYS MUCH OF THE WATCHDOG DUTY FALLS ON THE SHOULDERS OF FUND DIRECTORS ELECTED BY SHAREHOLDERS TO WATCH OUT FOR THEIR INTERESTS IN HIS VIEW FUND DIRECTORS NEED TO TAKE THE INITIATIVE TO MAKE SURE FUNDS AND THEIR MANAGERS BEHAVE APPROPRIATELY SAYS MR BEESE THE CORPORATE GOVERNANCE WAVE THAT REVOLUTIONIZED BOARDS OF DIRECTORS ACROSS THE US SEEMS TO BE MANIFESTING ITSELF IN THE BOARDROOMS OF INVESTMENT COMPANIES AND AN UPGRADING OF STANDARDS IS CERTAINLY DUE SAYS KATHRYN MCGRATH FORMER HEAD OF THE SEC INVESTMENT MANAGEMENT DIVISION AND NOW A PARTNER AT THE WASHINGTON LAW FIRM MORGAN LEWIS & BOCKIUS THE MUTUALFUND INDUSTRY HAS A VERY CLEAN REPUTATION SHE SAYS BUT BECAUSE OF THE INDUSTRY'S EXPLOSIVE GROWTH THERE IS SO MUCH MORE MONEY BEING HANDLED IN THE CARE OF THESE FOLKS THAT THE STANDARDS FOR WATCHING THEM NEED TO BE RAISED 9401130015 940113 CANADA WARNS IT WILL INTERCEPT PIRATE' FISH BOATS BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT WARNED THAT IT IS PREPARED TO INTERCEPT PIRATE FISHING BOATS OPERATING IN THE HIGH SEAS OF THE NORTHWEST ATLANTIC SUCH ACTION WOULD BE AN UNPRECEDENTED USE OF CANADIAN NAVAL POWER OUTSIDE CANADIAN WATERS IN PEACETIME A GOVERNMENT OFFICIAL SAID THE WARNING WAS ISSUED BY FISHERIES MINISTER BRIAN TOBIN AT THE CONCLUSION OF A VISIT TO EUROPE TO TRY TO WIN SUPPORT FOR TOUGHER ACTION TO PROTECT HARDPRESSED FISH STOCKS OFF CANADA'S EAST COAST CANADA IS ENFORCING TOUGH RESTRICTIONS ON FISHING FOR COD AND OTHER SPECIES WITHIN ITS FISHERIES JURISDICTION WHICH EXTENDS 200 MILES FROM THE CANADIAN COAST BUT THE GOVERNMENT SAID FOREIGN FISHING BOATS ARE UNDERMINING CANADA'S CONSERVATION EFFORTS BY HAULING AWAY FISH JUST BEYOND CANADA'S 200MILE LIMIT SOME OF THESE BOATS ARE OWNED BY EUROPEANS BUT REGISTERED IN COUNTRIES SUCH AS PANAMA HONDURAS AND BELIZE THE GOVERNMENT SAID MR TOBIN SAID THESE FLAGOFCONVENIENCE VESSELS ARE MODERN DAY PIRATES HE SAID CANADA IS PREPARED IF NECESSARY TO ACT ALONE AGAINST SUCH BOATS IF THAT'S WHAT IT TAKES TO STOP THE DESTRUCTION OF FISH STOCKS THE MINISTER SAID WE'RE SATISFIED WHAT WE ARE PROPOSING IS PERFECTLY IN KEEPING WITH THE INTERNATIONAL LAW OF THE SEA THE GOVERNMENT INTENDS TO SERVE NOTICE IN PARLIAMENT NEXT WEEK OF ITS INTENTION TO SEEK LEGISLATION AUTHORIZING ACTION AGAINST STATELESS OR FLAGOFCONVENIENCE VESSELS OUTSIDE CANADIAN WATERS DAVID VANDERZWAAG A DALHOUSIE UNIVERSITY LAW SCHOOL PROFESSOR SAID IT ISN'T CLEAR WHETHER CANADA WOULD BE VIOLATING INTERNATIONAL LAW IF IT TOOK ACTION AGAINST FISHING VESSELS ON THE HIGH SEAS BEYOND 200 NAUTICAL MILES IT'S CLEARLY VERY CONTROVERSIAL IN TERMS OF WHAT ANY COASTAL STATE CAN DO HE SAID INTERNATIONAL LAW IS A VERY CREATIVE ARENA THE NORTHWEST ATLANTIC FISHERIES ORGANIZATION WAS FORMED IN 1978 TO MANAGE INTERNATIONAL WATERS OFF CANADA'S GRAND BANKS FISHING GROUND THE ORGANIZATION'S MEMBERS INCLUDE CANADA THE EUROPEAN UNION BULGARIA CUBA ESTONIA ICELAND JAPAN LATVIA LITHUANIA NORWAY POLAND ROMANIA AND RUSSIA THE EUROPEAN UNION HAS COMMITTED ITSELF TO ENSURING THAT ITS MEMBERSTATE VESSELS RESPECT NAFO FISHING QUOTAS AND REGULATIONS MR TOBIN SAID OUR QUARREL NOW IS TARGETED AGAINST VESSELS THAT HAVE NO LEGITIMATE INTERNATIONAL QUOTAS IN THE NAFO AREA THEY ARE UNDERMINING CONSERVATION AND INTERNATIONAL FISHERIES RULES TO THE DETRIMENT OF ALL NAFO MEMBERS THE DECLINE IN FISH STOCKS OFF CANADA'S COAST HAS CRIPPLED THE FISHING INDUSTRY IN THE ATLANTIC PROVINCES MORE THAN 35000 FISHERMEN AND FISHPLANT WORKERS HAVE LOST THEIR JOBS SINCE 1991 9401130014 940113 CLINTON SEEKS SPECIAL COUNSEL ON WHITEWATER PRESIDENT IS BACKING DOWN IN AN EFFORT TO PROTECT THE REST OF HIS AGENDA BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON BUCKLING UNDER INTENSE BIPARTISAN PRESSURE CALLED FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO LOOK INTO HIS CONTROVERSIAL INVESTMENT IN WHITEWATER DEVELOPMENT CO WHITE HOUSE AIDES SAID THE PRESIDENT'S TURNABOUT WAS A POLITICAL JUDGMENT IF SOMETHING WEREN'T DONE TO QUIET THE CLAMOR OVER WHITEWATER NONE OF THE PRESIDENT'S OTHER PRIORITIES WOULD BE HEARD IN RECENT DAYS EVEN DEMOCRATIC LAWMAKERS WERE ASKING THE PRESIDENT TO OPEN HIS FAILED REALESTATE INVESTMENT TO MORE SCRUTINY WE STILL KNOW THE CLINTONS DIDN'T DO ANYTHING WRONG ASSERTED WHITE HOUSE AIDE GEORGE STEPHANOPOULOS ADDING THAT THE PRESIDENT'S CALL FOR ATTORNEY GENERAL JANET RENO TO APPOINT A SPECIAL COUNSEL WAS REWARDING IRRESPONSIBLE ALLEGATIONS BUT AT A NEWS BRIEFING WHERE THE PRESIDENT'S DECISION WAS ANNOUNCED HE ADDED THIS CONTROVERSY IS BECOMING TOO MUCH OF A DISTRACTION CONFRONTED WITH THE PRESIDENT'S REQUEST MS RENO REVERSED HER OPPOSITION TO SUCH A MOVE SAYING SOMETIMES WE HAVE TO GO BEYOND WHAT IS GENERALLY APPROPRIATE SIMPLY TO ASSURE PEOPLE THAT WE HAVE GONE THE EXTRA MILE MS RENO ADDED THAT SHE HADN'T TALKED TO ANYONE IN THE WHITE HOUSE YESTERDAY ABOUT THE PRESIDENT'S REQUEST A DEPARTMENT SPOKESMAN SAID SHE READ THE LETTER IN WHICH THE WHITE HOUSE ASKED HER TO NAME A SPECIAL COUNSEL ONLY FIVE OR 10 MINUTES BEFORE IT WAS MADE PUBLIC THE ATTORNEY GENERAL SAID THE SPECIAL COUNSEL WOULD BE APPOINTED AS SOON AS POSSIBLE BUT DIDN'T SAY WHOM SHE WHOULD CHOOSE THE SPECIAL COUNSEL WILL REPORT TO MS RENO BUT OPERATE INDEPENDENTLY OF THE JUSTICE DEPARTMENT THE COUNSEL WILL HAVE THE POWER TO ISSUE SUBPOENAS AND IF NECESSARY CONVENE A GRAND JURY BUT EVEN AS THE ADMINISTRATION WAS MOVING TOWARD CALLING FOR A SPECIAL COUNSEL A STEP MR CLINTON RESISTED FOR WEEKS REPUBLICANS ON CAPITOL HILL SAID THEY WANTED MORE GOP LEADERS IN THE HOUSE AND SENATE SAID THEY WOULD SEEK TO CREATE SPECIAL COMMITTEES THAT WOULD PLUMB THE MANY MYSTERIES THAT STILL SWIRL AROUND THE FAILED ARKANSAS REALESTATE COMPANY IN MY VIEW APPOINTMENT OF A SPECIAL COUNSEL DOESN'T TAKE AWAY OUR RESPONSIBILITY IN CONGRESS SAID SENATE MINORITY LEADER ROBERT DOLE OF KANSAS WE NEED TO DETERMINE THE ANSWERS TO ALL THE QUESTIONS THAT HAVE BEEN RAISED WE MUST MEET OUR RESPONSIBILITY JUST AS THE EXECUTIVE BRANCH MUST MEET ITS RESPONSIBILITY THE ISSUE WON'T DIE WITH THE PRESIDENT'S ANNOUNCEMENT WHILE THE WHITE HOUSE SAID MR CLINTON WOULD TURN OVER HIS WHITEWATER FILES TO A SPECIAL COUNSEL HE STILL DOESN'T INTEND TO GIVE THEM TO ANY CONGRESSIONAL COMMITTEE OR TO THE PUBLIC AT LARGE GOSH NO MR STEPHANOPOULOS SAID IN THE INTERVIEW THE SPECIAL COUNSEL'S REPORT HE SAID WOULD BE THE VEHICLE TO CLEAR THE AIR ON THE MATTER THE PRESIDENT HAD PREVIOUSLY AGREED TO TURN OVER HIS WHITEWATER DOCUMENTS TO THE JUSTICE DEPARTMENT WHICH IS LOOKING INTO THE ARKANSAS COMPANY AS PART OF A BROADER INQUIRY INTO MADISON GUARANTY SAVINGS & LOAN A FAILED LITTLE ROCK ARK THRIFT OWNED BY JAMES MCDOUGAL MR MCDOUGAL WAS A BUSINESS PARTNER OF BILL AND HILLARY RODHAM CLINTON IN WHITEWATER IN THE 1980S AND WAS A POLITICAL SUPPORTER OF MR CLINTON WHEN HE WAS ARKANSAS GOVERNOR MS RENO WOULDN'T DEFINE THE SCOPE OF THE INDEPENDENT COUNSEL'S INVESTIGATION THE EXISTING PROBES BY DEPARTMENT OFFICIALS WILL CONTINUE UNTIL THE APPOINTMENT OF THE SPECIAL COUNSEL WHO WILL DECIDE WHETHER TO USE THE CURRENT INVESTIGATORS THE DEPARTMENT SPOKESMAN SAID A VARIETY OF ACCUSATIONS AND SUSPICIONS HAVE ARISEN ABOUT THE DEALINGS OF MR MCDOUGAL AND THE CLINTONS INCLUDING QUESTIONS ABOUT TAX PAYMENTS AND INTERFERENCE IN BANK REGULATION MR CLINTON HAS STEADFASTLY DENIED ANY WRONGDOING THE MOST IMPORTANT THING TO ME AND THE MOST IMPORTANT THING TO THE AMERICAN PEOPLE IS I'M COMPLETELY RELAXED ABOUT THIS BECAUSE I DIDN'T DO ANYTHING WRONG EXCEPT I MADE A BAD BUSINESS DEAL MR CLINTON SAID TUESDAY IN AN INTERVIEW WITH CBS NEWS SPECIFICALLY THE JUSTICE DEPARTMENT IS LOOKING INTO WHETHER MR MCDOUGAL USED MADISON GUARANTY TO DIVERT MONEY INTO WHITEWATER IMPROPERLY THERE ALSO HAVE BEEN ALLEGATIONS THAT IN THE MID1980S MADISON PAID CERTAIN CAMPAIGN AND OTHER DEBTS OF THE CLINTONS WHICH IS A QUESTIONABLE PRACTICE THE THRIFT HAS BEEN DECLARED INSOLVENT AND FEDERAL TAXPAYERS HAVE HAD TO PICK UP AN ESTIMATED TAB OF 50 MILLION TO PROTECT DEPOSITORS SOME MEMBERS OF CONGRESS HAVE CRITICIZED THE PRESIDENT FOR ARRANGING TO HAVE THE JUSTICE DEPARTMENT ISSUE A SUBPOENA THAT WOULD PROTECT THE WHITEWATER DOCUMENTS FROM PUBLIC DISSEMINATION THE WHITE HOUSE ALSO HAS BEEN SLOW IN DISCLOSING THE WHEREABOUTS AND DISPOSITION OF THE DOCUMENTS SOME OF WHICH WERE QUIETLY REMOVED FROM THE OFFICE OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER AFTER HIS SUICIDE IN JULY THE WHITE HOUSE STAFF WAS DIVIDED OVER HOW TO HANDLE THE ISSUE PRIVATELY MR STEPHANOPOULOS AND WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY ARGUED FOR BROAD DISCLOSURE AND THE APPOINTMENT OF A SPECIAL COUNSEL IN ORDER TO SILENCE CRITICS BUT SENIOR AIDE BRUCE LINDSEY WITH THE BACKING OF MRS CLINTON MAINTAINED FOR A LONG TIME THAT THE ISSUE WAS PRIVATE AND THAT THE CLINTONS HADN'T DONE ANYTHING WRONG DISCLOSURE WOULD CREATE MORE NOT FEWER POLITICAL HEADACHES THEY BELIEVED BUT WITH DEMOCRATS SUCH AS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN OF NEW YORK JOINING IN CALLS FOR A CHANGE OF POLICY THE WHITE HOUSE BOWED TO THE INEVITABLE ADDING TO THE PRESSURE CONGRESSIONAL DEMOCRAT LEADERS TOLD THE WHITE HOUSE THIS WEEK THAT THE DEMOCRATS SIMPLY HAD NO CONVINCING REPLY TO MR DOLE'S PUBLIC CALL FOR A SPECIAL PROSECUTOR ALTHOUGH WHITE HOUSE AIDES PAINTED THE PRESIDENT AS RELUCTANT TO CHANGE HIS MIND MR CLINTON HAD ALL BUT MADE UP HIS MIND IN EUROPE ON TUESDAY NIGHT HE CHOSE TO SLEEP ON THE MATTER BEFORE DECIDING TO CALL FOR A SPECIAL COUNSEL SEPARATELY THE FEDERAL DEPOSIT INSURANCE CORP IS INVESTIGATING WHETHER MRS CLINTON'S FORMER LAW FIRM MISLED THE AGENCY REGARDING THE FIRM'S DEALINGS WITH MADISON GUARANTY THE ASSOCIATED PRESS REPORTED IN 1989 THE ROSE LAW FIRM WAS PAID 400000 BY THE FDIC TO SUE THE AUDITORS OF MADISON GUARANTY ROSE HAD EARLIER REPRESENTED MADISON IN AN EFFORT TO WIN APPROVAL FROM ARKANSAS REGULATORS FOR A RECAPITALIZATION EFFORT FEDERAL CONFLICTOFINTEREST REGULATIONS GENERALLY PROHIBIT CONTRACTORS FROM REPRESENTING THE GOVERNMENT IN THRIFTFAILURE CASES WHERE THE SAME LAW OR ACCOUNTING FIRM REPRESENTS OR ONCE REPRESENTED THE FAILED S&L THE FDIC PROBE WHICH IS SEPARATE FROM THE JUSTICE DEPARTMENT'S CRIMINAL INQUIRY SEEKS TO LEARN WHETHER THE ROSE LAW FIRM WAS FORTHCOMING ABOUT ITS TIES TO MADISON THE AP REPORTED JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9401130013 940113 WHO'S NEWS QUAKER OATS CO QUAKER OATS CO CHICAGO JUDY C LEWENT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MERCK & CO WAS ELECTED A DIRECTOR OF THIS FOOD AND BEVERAGE COMPANY INCREASING THE BOARD'S SIZE TO 14 MEMBERS 9401130012 940113 WHO'S NEWS BIGNAME PRODUCER IS LEAVING LARGO AS JAPAN'S ARDOR FOR HOLLYWOOD COOLS BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD LARGO ENTERTAINMENT AN INDEPENDENT PRODUCTION COMPANY THAT BECAME A SYMBOL OF THE ONETIME JAPANESE INFATUATION WITH THE MOVIEINDUSTRY HAS LOST ITS CHIEF EXECUTIVE MOVIE PRODUCER LARRY GORDON LARGO'S CHAIRMAN SAID HE WAS LEAVING THE COMPANY TO ACCEPT A PRODUCTION DEAL WITH MCA'S UNIVERSAL PICTURES WHEN LARGO WAS FORMED NEARLY FIVE YEARS AGO MR GORDON HAD CALLED IT MY FIELD OF DREAMS BUT LIKE A LONG SUCCESSION OF OTHER HIGHLY PUBLICIZED INDEPENDENT PRODUCTION COMPANIES IN HOLLYWOOD THIS ONE ENDED UP BEING PLOWED UNDER LARGO NAMED FOR MR GORDON AND ALSO BECAUSE OF ITS MUSICAL MEANING SLOW AND STATELY WAS ANNOUNCED AMID A STORM OF HOOPLA AS THE FIRST MAJOR MANIFESTATION OF THE JAPANESE LOVE AFFAIR WITH HOLLYWOOD JVC/VICTOR CO OF JAPAN OR JVC KICKED IN 100 MILLION TO BANKROLL MR GORDON THEN ONE OF THE INDUSTRY'S HOTTEST PRODUCERS MR GORDON WHO HAD 48 HOURS DIE HARD AND FIELD OF DREAMS AMONG HIS CREDITS WAS GOING TO HAVE TOTAL AUTONOMY THE VAUNTED ABILITY TO SAY YES TO MOVIES ALTHOUGH HE HAD ONCE RUN A STUDIO TWENTIETH CENTURY FOX AND WAS KNOWN AS A CONSUMMATE INSIDER MR GORDON WAS FRUSTRATED WITH STUDIO BUREAUCRACY HE BELIEVED HE HAD COME UP WITH A WAY TO BUCK THE SYSTEM LARGO WAS CONSTRUCTED SO THAT ALTHOUGH IT WOULDN'T DISTRIBUTE ITS OWN MOVIES IT WOULD DO JUST ABOUT EVERYTHING ELSE AND RETAIN OWNERSHIP IF A BLOCKBUSTER HAPPENED A WINDFALL WOULD RESULT AND THE COMPANY COULD GO PUBLIC OR SELL A HANDSOME EQUITY STAKE BUT SEVERAL THINGS HAPPENED TO HOBBLE THE COMPANY ACCORDING TO PEOPLE CLOSE TO THE SITUATION MATSUSHITA ELECTRIC INDUSTRIAL CO WHICH OWNS 51 OF JVC PAID MORE THAN 6 BILLION FOR MCA INC OVERNIGHT LARGO BECAME AN AFTERTHOUGHT SAY SOME OBSERVERS JUST AS THE JAPANESE ECONOMY BEGAN TO COOL AND JAPANESE ENTHUSIASM ABOUT HOLLYWOOD BEGAN TO WANE CREDIT LYONNAIS AND OTHER BANKS WERE BEING RAVAGED BY BAD LOANS TO INDEPENDENT PRODUCERS LARGO WAS ABLE TO ATTRACT A 75 MILLION CREDIT FACILITY FROM A GROUP OF BANKS LED BY CHEMICAL BANK A UNIT OF CHEMICAL BANKING CORP BUT FUNDS STILL WERE TIGHT MEANWHILE MR GORDON WAS MAKING MOVIES THAT WEREN'T TAKING OFF NOT AS MANY AS THE FIVE OR SIX A YEAR THAT HAD BEEN PROJECTED BUT SELECTED MIDDLEBUDGET MOVIES LIKE JUDGMENT NIGHT POINT BREAK THE SUPER AND UNLAWFUL ENTRY LARGO'S STRUCTURE CALLED FOR IT TO PAY MUCH OF ITS OWN RELEASING COSTS DEVELOPMENT COSTS OVERSEAS SALES FORCE AND OVERHEAD EVEN A STRING OF MODESTLY BUDGETED FILMS THAT DIDN'T WORK COST A LOT WHAT PROFITS THERE WERE WENT TO THE STUDIOS WHO DISTRIBUTED THE FILMS FURTHERMORE MR GORDON WAS MORE INTERESTED AND MORE SKILLED AT PUTTING TOGETHER MOVIE PROJECTS THAN IN RUNNING A COMPANY AND SUPERVISING A MULTITUDE OF THEM ASSOCIATES SAY THE MAN WHO WANTED TO SAY YES JUST WASN'T SAYING IT OFTEN ENOUGH SAY SOME INDIVIDUALS CLOSE TO THE SITUATION NONE OF THE FILMS TOOK OFF AND MR GORDON BEGAN FOCUSING ON PUTTING TOGETHER TWO POTENTIAL BIGTICKET FRANCHISE MOVIES THAT HE BELIEVED COULD TRANSFORM THE COMPANY THEY WERE WATERWORLD A FUTURISTIC ADVENTURE WITH KEVIN COSTNER AND DIE HARD 3 WITH BRUCE WILLIS THE LATTER HAD A PROBLEM WHEN ITS SCRIPT TERRORISTS ON A SHIP WAS BEATEN TO THE SCREEN BY ANOTHER MOVIE UNDER SIEGE AND A NEW CONCEPT HAD TO BE FOUND BUT THE MAIN PROBLEM WAS THAT THE FILMS WOULD COST ANYWHERE FROM 50 MILLION TO 80 MILLION AND JVC WOULDN'T PAY FOR THEM ASSOCIATES SAY JVC OFFICIALS WEREN'T AVAILABLE FOR COMMENT BOTH MOVIES NOW ARE BEING MADE ELSEWHERE AS A RESULT LAST YEAR MR GORDON TOLD FRIENDS HE WAS FRUSTRATED UNIVERSAL WHERE HE MUST BRING HIS MOVIE PROJECTS FIRST WAS A LOGICAL PLACE FOR HIM TO GO THE STUDIO HAS RELEASED SEVERAL LARGO MOVIES INCLUDING THE COMING THE GETAWAY AND TIMECOP AND ITS CHIEF THOMAS POLLOCK IS MR GORDON'S FORMER ATTORNEY LARGO WHICH HAS 40 EMPLOYEES WILL CONTINUE TO EXIST SAYS MR GORDON WE STILL HAVE ASSETS AND TWO MOVIES TO RELEASE SAYS MR GORDON I DON'T CONSIDER IT A FAILURE 9401130011 940113 WHO'S NEWS ANERGEN INC ANERGEN INC REDWOOD CITY CALIF BRUCE LA CARTER 50 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BIOTECHNOLOGY CONCERN INCREASING THE BOARD'S SIZE TO SIX MEMBERS DR CARTER IS PRESIDENT OF ZYMOGENETICS INC A SEATTLE BIOTECH COMPANY AND CHIEF SCIENTIFIC OFFICER OF THE HEALTHCARE GROUP OF DENMARKBASED NOVO NORDISK AS 9401130010 940113 BUSINESS BRIEF AMERICAN EXPRESS CO OFFERS CARD FOR FIRMS TO BUY OFFICE GOODS NEW YORK IN AN EFFORT TO BROADEN ITS CORPORATE CARD BUSINESS AMERICAN EXPRESS CO INTRODUCED A CHARGE CARD THAT COMPANIES CAN USE TO PURCHASE OFFICE SUPPLIES AND EQUIPMENT ALTHOUGH AMERICAN EXPRESS ALREADY PROVIDES MOST OF THE NATION'S LARGEST CORPORATIONS WITH CARDS FOR TRAVEL AND ENTERTAINMENT EXPENSES THE POTENTIAL FOR THE CORPORATE PURCHASING CARD IS EVEN GREATER TRAVEL AND ENTERTAINMENT COSTS TOTAL ABOUT 110 BILLION A YEAR WHILE PURCHASES OF SMALLTICKET OFFICE SUPPLIES ADD UP TO 250 BILLION BUT THOMAS FACCIOLA AN ANALYST AT SG WARBURG SAID HE DOESN'T EXPECT AMERICAN EXPRESS TO REALIZE ANY PROFIT FROM THE NEW CARD BEFORE 1995 MR FACCIOLA ESTIMATED THAT THE INTRODUCTION OF THE CARD WILL COST ABOUT 50 MILLION THE NEW CARD INTRODUCED YESTERDAY ISN'T THE FIRST EFFORT BY A CARD ISSUER TO TAP THE OFFICESUPPLY BUSINESS FIRST BANK SYSTEM INC IN MINNEAPOLIS IS ALREADY PROCESSING 50 MILLION OF CORPORATE PURCHASES EACH MONTH THROUGH A SIMILAR PROGRAM USING VISA CARDS AMERICAN EXPRESS SAID IT WILL BE ABLE TO CAPITALIZE ON EXISTING CORPORATE RELATIONSHIPS ROGER BALLOU PRESIDENT OF AMERICAN EXPRESS'S TRAVEL SERVICES GROUP WHICH HANDLES CORPORATE ACCOUNTS ALSO NOTED THAT WHILE BANK ISSUERS OF OTHER CREDIT CARDS MUST COORDINATE THEIR EFFORTS WITH MERCHANT BANKS AND OUTSIDE PROCESSORS AMERICAN EXPRESS WILL DEAL DIRECTLY WITH CORPORATE CUSTOMERS HE SUGGESTED THOUGH THAT AMERICAN EXPRESS MIGHT ALSO ISSUE THE NEW PURCHASING CARD THROUGH BANKS ALTHOUGH A SPOKESWOMAN LATER SAID THAT THE COMPANY HAS HAD ONLY PRELIMINARY DISCUSSIONS WITH SOME BANKS ABOUT SUCH AN ARRANGEMENT 9401130009 940113 LEISURE & ARTS ROGUE CAPTAIN ISLAND CHEFS LEAD HAWAII FISH BOOM BY CHARLES MONAGHAN HONOLULU THE CLOCK ON THE WALL OF THE HONOLULU FISH AUCTION NEXT TO THE DOCKS AT KEWALO BASIN SAYS 745 AM MOST OF THE 50 TONS OF FISH UNLOADED DURING THE NIGHT SWEETFLESHED SNAPPERS GREEN AND GOLD MAHIMAHI BIGEYE AND SKIPJACK TUNA AMONG THEM HAVE ALREADY BEEN AUCTIONED AND CARTED AWAY FOR DELIVERY WHAT REMAINS UNDER THE FLUORESCENT LIGHTS ON THE WET CONCRETE FLOOR ARE FOUR LARGE PALLETS STACKED HIGH WITH THE NEW STAR OF HAWAII'S WATERS GLISTENING MUSCULAR SILVER SKINNED SWORDFISH KNOWN IN HAWAII BY THEIR JAPANESE NAME SHUTOME THEY WEIGH 100 TO 200 POUNDS EACH CLAD IN BLUE OVERALLS BROOKS TAKANAKA ASSISTANT GENERAL MANAGER OF THE UNITED FISHING AGENCY A PRIVATE AUCTION HOUSE IS MANNING HIS CELLULAR PHONE HE IS IN TOUCH WITH A PAIR OF BIG SWORDFISH BUYERS OCEAN STAR OF SAN DIEGO AND PHILLIPS SEAFOOD OF POINT PLEASANT NJ ALONG THE SHED WALL ANOTHER SEVEN BUYERS SOME WEARING KNEEHIGH WELLINGTON BOOTS ANTENNAS RAISED ON THEIR OWN PORTABLE PHONES ARE TALKING TO CLIENTS IN HAWAII THE US MAINLAND AND POSSIBLY JAPAN AUCTIONEER WAYNE HITASHI IN JEANS A HAWAIIAN SHIRT AND SNEAKERS HAS BEEN TAKING BIDS PALLET BY PALLET USING A BLACK MAGIC MARKER TO WRITE PRICES ON A LARGE WHITE PLASTIC BOARD HE IS AT THE LAST PALLET THE FIRST THREE HAVE SOLD FOR PRICES RANGING FROM 405 TO 440 A POUND MR TAKANAKA IS COMMUNICATING THE RESULTS OF THE BIDDING TO HIS PROSPECTIVE PURCHASERS IN SAN DIEGO AND POINT PLEASANT THE PRICE FOR THE SWORDFISH ON THE FINAL PALLET HAS REACHED 330 A POUND YOU EMBARRASSED YOURSELF WITH YOUR OPENER MR TAKANAKA TEASES ONE IT'S JUST GONE TO 360 NOW IT'S 375 IT'S MOVING FAST BACK IN A MINUTE HE HITS A BUTTON ON THE PHONE AND AUTOMATICALLY CONNECTS WITH THE SECOND COMPANY ACROSS THE FLOOR A BUYER ALONG THE WALL SIGNALS TO THE AUCTIONEER IT'S FLOWING FAST TODAY MR TAKANAKA SAYS IT'S AT 390 HE CLICKS OFF WHAT A JOB SAYS MR TAKANAKA IT'S LIKE PLAYING POKER EVERY DAY FOR A LIVING HOW DID WE EVER DO BUSINESS WITHOUT CELLULAR PHONES IT IS 8 AM THE PRICE HAS GONE TO 4 A POUND ANYBODY ELSE ASKS MR HITASHI MY CLIENT IS MOVING FROM ONE BUILDING TO ANOTHER SAYS ONE OF THE BUYERS ALONG THE WALL WE'VE HEARD THAT BEFORE SAYS HITASHI LET'S GET OUT EARLY TODAY SUDDENLY THERE IS A FLURRY OF LASTMINUTE BIDDING THE PRICE RISES QUICKLY TO 425 A POUND BID BY MR TAKANAKA FOR PHILLIPS ANY MORE ASKS MR HITASHI LOOKING AROUND THE ROOM OK THAT'S A WRAP WORKERS BEGIN TO MOVE THE PALLETS MUCH OF THE CATCH IS HEADING TO THE MAINLAND IN ICED AIRFREIGHT BOXES UNTIL ABOUT FIVE YEARS AGO SWORDFISH WERE A RARITY AT THE HONOLULU AUCTION TODAY NOT ONLY ARE THEY THE AUCTION'S TOP MONEYSPINNER BUT HONOLULU HAS BECOME THE LEADING PORT FOR SWORDFISH IN THE US AND THE CHANGE IS ALL THE WORK OF A SINGLE FISHERMAN NAMED BRUCE MOURNIER HE IS CREDITED WITH INTRODUCING NEW TECHNOLOGY FOR ATTRACTING FISH A FLUORESCENT LIGHT STICK THAT GLOWS FOR 12 TO 14 HOURS AND ZEROING IN ON THE EXACT TRAVEL ROUTES OF PACIFIC SWORDFISH A MAVERICK BOAT CAPTAIN AND GRADUATE ENGINEER MOURNIER PORED OVER JAPANESE FISHING STATISTICS UNTIL HE SPOTTED A DISTINCTIVE MOVEMENT PATTERN FOR SWORDFISH ABOUT 1200 MILES WEST OF HAWAII IN JUNE 1988 AMID MUCH SCOFFING FROM FELLOW LONGLINERS MR MOURNIER MADE A DECISION TO USE HIS BOAT THE MAGIC DRAGON TO CONCENTRATE ON SWORDFISH THE SCOFFING STOPPED WHEN HE BEGAN RETURNING WITH GROANING BOATLOADS OF BROADBILLS FROM HIS THREEWEEK TRIPS WORD OF MR MOURNIER'S SUCCESS SPREAD LIKE WILDFIRE IT WAS LIKE SAYING 'GOLD DISCOVERED IN CALIFORNIA' SAYS MR TAKANAKA DOZENS OF LOCAL BOATS IMMEDIATELY SWITCHED TO SWORDFISH AND OTHERS CAME OVER FROM THE WEST COAST SEVERAL VIETNAMESE FISHERMEN FROM THE GULF COAST FLEEING FIERCE COMPETITION IN THE SHRIMPING AND TUNA INDUSTRIES WERE SOON IN HAWAII HAULING IN IMPRESSIVE CATCHES BIG BOATS FROM THE EAST COAST WHERE THE SWORDFISH CATCH IS IN DECLINE HAVE EVEN JOINED THE FRAY SWORDFISH LANDINGS IN HONOLULU HAVE GONE FROM ALMOST NOTHING BEFORE MR MOURNIER BEGAN PURSUING SWORDFISH IN 1988 TO AN ESTIMATED 11 MILLION POUNDS ANNUALLY TODAY MR MOURNIER HIMSELF IS CURRENTLY HUNTING PACIFIC BROADBILLS OUT OF THE PORTS OF LOS ANGELES AND SAN FRANCISCO BECAUSE THOSE CITIES ARE CLOSER TO FREQUENT AIR TRANSPORTATION SOME OBSERVERS THINK MR MOURNIER'S MOVE MAY PORTEND A SHIFT BY SOME BOATS TO WEST COAST PORTS SUCH AS SEATTLE WHICH IS AS CLOSE TO THE NORTHERN END OF SWORDFISH RUNS AS IS HONOLULU BUT IN HAWAII THERE IS STILL STIFF COMPETITION FOR THE SWORDFISH LICENSES ISSUED BY THE WESTERN PACIFIC REGIONAL FISHERIES COUNCIL THE QUASIFEDERAL AGENCY RESPONSIBLE UNDER THE 1976 MAGNUSON ACT FOR PREVENTING OVERFISHING IN THE AREA CURRENTLY SOME 60 HONOLULUBASED BOATS ARE GOING SPECIFICALLY AFTER SWORDFISH HAWAII'S CHEFS LONG KNOWN FOR THE EXCELLENCE OF THEIR FISH PREPARATIONS HAVE BEEN QUICK TO TAKE ADVANTAGE OF THE SWORDFISH BOOM DOMINIQUE JAMAIN THE LOIRE VALLEYBORN CHEF AT THE KAHALA HILTON IN THE SUBURBS OF HONOLULU WHERE PRESIDENT CLINTON STAYED ON HIS HAWAIIAN VISIT IN JULY SEARS THE SWORDFISH TOPS IT WITH A CRUST OF CRABMEAT AND SESAME SEEDS AND SERVES IT WITH A WARM VINAIGRETTE MADE WITH MIRIN AND CILANTRO GEORGE MAVROTHALASSITIS A NATIVE OF MARSEILLES WHO TRAINED AT THE THREESTAR ARCHESTRATE RESTAURANT IN PARIS AND NOW IS EXECUTIVE CHEF AT THE HALEKULANI HOTEL IN WAIKIKI COATS THE FIRM FLESH OF THE SHUTOME IN HERBS GRILLS IT AND SERVES IT WITH A LIGHT CURRY SAUCE AT THE HOTEL'S FAMED LA MER RESTAURANT PHILIPPE PADOVANI THE MUCHRESPECTED EXECUTIVE CHEF AT THE OPULENT MANELE BAY HOTEL ON THE ISLAND OF LANAI BROILS THE FISH AND SERVES IT WITH A SEA URCHIN SAUCE HE ACCOMPANIES THE DISH WITH BEETS SAUTEED IN OLIVE OIL AND FRESH CHERVIL ANOTHER NAME APPEARING MORE FREQUENTLY ON HAWAIIAN MENUS IS THE OPAH OR MOONFISH A THICKBODIED FISH BRIGHT RED WITH WHITE SPOTS AND SO ROUND IT RESEMBLES A GARISH SEWER COVER WITH MOUTH AND TAIL ATTACHED THE OPAH WEIGHS UP TO 200 POUNDS OPAH IS BEING LANDED IN HONOLULU IN INCREASING NUMBERS MAINLY AS A BYPRODUCT OF THE LONGER RANGE AND DEEPER FISHING CAPABILITIES OF HAWAII'S TUNAFISHING FLEET MR TAKANAKA OF THE UNITED FISHING AGENCY WHOSE FATHER AND GRANDFATHER WERE FISHERMEN REMEMBERS THAT AN OPAH CAUGHT BY MISTAKE WHILE FISHING FOR ANOTHER SPECIES WOULD OCCASIONALLY APPEAR ON THE TABLE AT HIS HOME BROILED OR AS SASHIMI IF THE FISH WAS NOT CONSUMED AT HOME IT WAS GIVEN AWAY AS A GIFT BUT THERE WAS NO COMMERCIAL MARKET FOR IT NOW INCREASED AVAILABILITY HAS INSPIRED CHEFS TO CREATE RECIPES THEY LIKE PREPARING OPAH BECAUSE ITS JUICY OILY FLESH STANDS UP SO WELL TO HEAT IT IS ALMOST IMPOSSIBLE TO OVERCOOK SAYS CHEF YVES MENORET OF HONOLULU'S HILTON HAWAIIAN VILLAGE MENORET USES OPAH FOR BANQUETS AND AS AN OCCASIONAL SPECIAL AT THE HOTEL'S BALIBYTHESEA RESTAURANT DAY IN AND DAY OUT THE BEST PLACE IN HONOLULU FOR OPAH MAY BE HORATIO'S A SPRAWLING FISH RESTAURANT AT A SHOPPING COMPLEX CALLED WARD'S WAREHOUSE FREQUENTED BY PEOPLE WHO WORK IN THE NEARBY FINANCIAL DISTRICT CHEF MICHAEL BRYAN GRILLS THE OPAH OVER KIAWE MESQUITE AND BASTES IT WITH A BLACK BEANCHILI BUTTER THE RICH SEA TASTE OF THE FISH EASILY HANDLES THE PUNGENT BUTTER OPAH HAS ALSO ARRIVED ON THE MAINLAND IT IS SERVED AT THE LUXURIOUS GRAND BAY HOTEL IN MIAMI WHERE IT IS SEARED AND SERVED WITH A SAKE BUTTER SAUCE OVER ARUGULA HOW DID THE MOONFISH GET TO FLORIDA IT WAS INTRODUCED BY A CHEF FROM HAWAII MR MONAGHAN IS A BROOKLYNBASED FREELANCER WHO WRITES ABOUT FOOD AND TRAVEL 9401130008 940113 DIVIDEND NEWS IDB COMMUNICATIONS GROUP INC IDB COMMUNICATIONS GROUP INC CHANGED THE PAYMENT DATE FOR ITS 5 COMMONSTOCK DIVIDEND AND 3FOR1 SPLIT TO FEB 4 FROM FEB 28 9401130007 940113 BUSINESS BRIEF LOMAS FINANCIAL CORP REDUCTION IN STAFF OF 78 IS PLANNED BY END OF MONTH LOMAS FINANCIAL CORP SAID IT PLANS TO CUT ITS WORK FORCE BY 180 PEOPLE OR 78 BY THE END OF THE MONTH AS PART OF A COSTCUTTING MOVE THE DALLAS MORTGAGESERVICING CONCERN SAID THE CUTS WILL RESULT IN A CHARGE OF ABOUT 5 MILLION FOR THE FISCAL SECOND QUARTER ENDED DEC 31 1993 LOMAS HAD NET INCOME OF 33 MILLION OR 16 CENTS A SHARE IN THE YEAREARLIER PERIOD LOMAS SAID THE JOB CUTS PRIMARILY IN DALLAS WILL SAVE THE COMPANY 8 MILLION A YEAR IN OPERATING EXPENSES LOMAS HAS 2300 EMPLOYEES 9401130006 940113 WORLD MARKETS TOKYO STOCKS SURGE 17 FOR 6TH GAIN IN A ROW BUT OTHER ASIAN AND EUROPEAN BOURSES TUMBLE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ENDED A VOLATILE SESSION WEDNESDAY WITH A 17 GAIN THE BOURSE'S SIXTH CLIMB IN A ROW BUT LONDON PRICES TUMBLED 12 PARTLY ON BRITISH UNEMPLOYMENT DATA THAT HURT THE INTERESTRATE OUTLOOK AND FRANKFURT SHARES ENDED BROADLY LOWER AS INVESTORS BEGAN SNIFFING FOR BETTER DEALS IN OTHER EUROPEAN MARKETS WHERE PROFITTAKING WAS PREVALENT ACROSS ASIA SHARES CONTINUED TO BE BATTERED ATTRIBUTED TO SPECULATIVE INVESTORS' GROWING ANXIETIES FOLLOWING A STELLAR 1993 RATHER THAN TO ANY SUDDEN CHANGE IN THE REGION'S CORPORATE OUTLOOK HONG KONG STOCKS PLUMMETED 4 AS THE MARKET'S SLUMP CONTINUED FOR A SECOND DAY EQUITIES SLID 23 IN MANILA 37 IN SINGAPORE 64 IN KUALA LUMPUR AND 73 IN BANGKOK WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11271 DOWN 020 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND DECLINES IN EUROPEAN AND ASIA/PACIFIC MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7446 UP 333 OR 47 WITH NIPPON SUISAN KAISHA LTD OF JAPAN POSTING A 77 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AGAIN AT 23802 DOWN 3431 OR 13 WITH BATU KAWAN BHD OF MALAYSIA SLIDING 15 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4181 POINTS TUESDAY SURGED 30863 TO 1879388 AS A BURST OF ARBITRAGE BUYING TO TAKE ADVANTAGE OF OVERSOLD POSITIONS IN THE FINAL HALFHOUR SPARKED A LATE RALLY THE NIKKEI'S FINISH NEAR THE DAY'S PEAKS WAS THE HIGHEST LEVEL SINCE NOV 4 IN TRADING THURSDAY THE NIKKEI INDEX FELL 14522 POINTS TO CLOSE THE MORNING SESSION AT 1864866 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 410 MILLION SHARES DOWN FROM 4412 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTPACED DECLINERS 792234 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 045 POINT TUESDAY GAINED 1059 TO 151143 THE CLIMB OVERCOMING TWO SHARP DROPS DURING THE SESSION CAME AFTER THE TOKYO MARKET SHOOK OFF SOME WORRIES ABOUT DELAYS ON JAPANESE GOVERNMENT POLITICALREFORM MEASURES SENTIMENT ALSO WAS SUPPORTED BY NEWS REPORTS THAT THE GOVERNMENT WILL PUSH TO USE PUBLIC FUNDS TO BUY LAND IN AN EFFORT TO INCREASE LIQUIDITY IN THE STAGNANT REALESTATE MARKET AND THAT IT MAY PROPOSE A BIGGERTHANEXPECTED INCOME TAX CUT TO HELP THE ECONOMY RECOVER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX TUMBLED 418 POINTS TO 33720 WHICH ALSO WAS THE INTRADAY LOW THE FT 30STOCK INDEX PLUNGED 306 POINTS OR 12 TO 25742 VOLUME WAS 8089 MILLION SHARES COMPARED WITH 8828 MILLION SHARES A DAY EARLIER THE BRITISH EMPLOYMENT FIGURES WHICH SHOWED THAT THE NUMBER OF JOBLESS SHRANK MARKEDLY MORE THAN EXPECTED LAST MONTH SUGGESTED THAT A LENDINGRATE CUT WILL BE DELAYED SOME BEARS EVEN BELIEVED THAT RATES HAVE BOTTOMED AND THAT THE NEXT RATE MOVE WILL BE UP BUT OTHERS SAID FAVORABLE INFLATION AND EUROPEAN RATE REDUCTIONS IN COMING MONTHS WILL ALLOW BRITAIN TO REDUCE ITS RATES YESTERDAY A FEW LARGE SELL ORDERS GUIDED BY COMPUTER PROGRAMS FROM BRITISH FUNDS TRIGGERED THE ROUT WITH PRICES DROPPING SHARPLY ACROSS THE SPECTRUM IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1957 POINTS TO 220918 NEAR THE DAY'S LOWS ON LIGHT VOLUME THE MARKET OPENED STRONGLY BUT A LACK OF BUYERS AND WORRIES RELATED TO GERMAN CORPORATE ACTIVITY PUSHED PRICES BROADLY LOWER GERMAN MUTUAL FUNDS HAVE BEEN HOLDING BACK ON COMMITTING CASH TO FRANKFURT SHARES RECENTLY AHEAD OF SEVERAL COMING STOCKRIGHTS ISSUES AND FOREIGN INVESTORS WERE TAKING CLOSER LOOKS AT THE LONDON AND PARIS MARKETS IN PARIS SHARES RETREATED ACROSS THE BOARD IN FAIRLY ACTIVE TRADING AS INVESTORS TOOK PROFITS FOLLOWING THE MARKET'S RECENT RECORDBREAKING ADVANCE WHILE POOR CORPORATE EARNINGS PROSPECTS DEPRESSED SENTIMENT IN AMSTERDAM STOCKS SKIDDED 13 ON PROFITTAKING INSPIRED BY LOWER PRICES ON OTHER BOURSES LOSSES WERE RECORDED IN ALL SECTORS WITH FOOD AND BEVERAGE COMPANIES AND PUBLISHERS HIT HARD IN THE SELLOFF IN MILAN EQUITIES FINISHED FLAT TO SLIGHTLY LOWER AS PROFITS WERE GRABBED FOLLOWING THE PREVIOUS DAY'S ADVANCE IN MADRID AND STOCKHOLM BOTH OF WHICH POSTED RECORD HIGHS THE PREVIOUS DAY PRICES FELL AS PROFITS WERE SNAGGED A FACTOR THAT ALSO DRAGGED STOCKS DOWN IN ZURICH AND LEFT PRICES MIXED IN BRUSSELS IN MEXICO CITY STOCKS RALLIED FROM INTRADAY LOWS TO END SLIGHTLY HIGHER AFTER PRESIDENT CARLOS SALINAS PROMISED A UNILATERAL CEASEFIRE WITH REBELS IN CHIAPAS AND PARDONS FOR THOSE WHO LAY DOWN THEIR WEAPONS THE INSURGENTS DIDN'T REPLY WHICH SPURRED A LATE SELLOFF IN SOME STOCKS THE MARKET ALSO FOUND SUPPORT FROM AN UNEXPECTED DROP IN MEXICAN INTEREST RATES IN HONG KONG STOCKS DIVED AS OVERSEAS FUND MANAGERS CONTINUED TO LIQUIDATE HOLDINGS THE BENCHMARK INDEX SKIDDED 58 IN THE PAST TWO SESSIONS AFTER A 33 REBOUND MONDAY FROM THE REVERSAL OF A RALLY THAT BEGAN LAST SEPTEMBER STOCKS ALSO WERE BATTERED WEDNESDAY BY SPECULATION THAT HONG KONG BANKS WILL TIGHTEN MORTGAGE POLICIES FURTHER BECAUSE OF SPIRALING RESIDENTIAL PROPERTY PRICES PROPERTY STOCKS TOOK THE WORST BEATING LOSING 5 AND LEADING THE MARKET DOWN COMMERCIAL AND INDUSTRIAL ISSUES SANK 44 AND UTILITIES LOST 41 BANKS WERE HURT THE LEAST EVEN WITH THEIR 19 DECLINE THE MARKET ALSO WAS PRESSURED BY SINOUS TRADE TALKS ON TEXTILES IN SINGAPORE SHARES WERE KNOCKED DOWN IN TURBULENT DEALINGS FROM THE OPENING BELL AND AT ONE POINT THE MARKET HAD COLLAPSED 62 INSTITUTIONAL AND RETAIL INVESTORS SOLD ISSUES ACROSS THE BOARD JITTERS CONTINUED BECAUSE OF INTERESTRATE FEARS AS WELL AS WARNINGS THAT THE MARKET WAS OVERHEATED SELLING BY FUNDS TOPPLED BLUE CHIPS AND SMALLER STOCKS WERE BASHED EVEN WORSE AS SOME SELLING WAS FORCED BY MARGIN CALLS FOR ISSUES BOUGHT ON CREDIT IN KUALA LUMPUR THE PLUNGE IN ACTIVE TRADING DEEPENED LOSSES FROM THE PREVIOUS DAY'S 59 SLIDE THOUGH STOCKS DID BOUNCE UP TO RECOVER FROM INTRADAY LOWS HELPED BY BLUE CHIPS AND BUYING BY SEVERAL GOVERNMENTCONTROLLED INSTITUTIONAL INVESTORS THE MALAYSIAN MARKET HAS TAKEN A 19 DRUBBING SINCE LAST THURSDAY AND IN BANGKOK THE MARKET'S TUMBLE WAS ACROSS THE BOARD AS EVERY SUBINDEX DECLINED IN MANILA THE MARKET CORRECTED FOR THE FOURTH STRAIGHT SESSION ON CONTINUED PROFITTAKING IN SYDNEY STOCKS DECLINED AS INVESTORS TOOK PROFITS IN A CONSOLIDATION AHEAD OF NEXT MONTH'S POSTING OF CORPORATE EARNINGS RESULTS IN TAIPEI SHARES EASED AFFECTED BY TIGHTENED LIQUIDITY AND TAIWAN'S WORST DROUGHT IN FOUR DECADES IN SEOUL THE MAIN INDEX ROSE BUT THE BROADER MARKET WEAKENED AS DECLINING ISSUES OUTNUMBERED GAINING ISSUES 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 9401130004 940113 INDUSTRY FOCUS APPAREL MAKERS ARE REFASHIONING THEIR OPERATIONS AS DEPARTMENT STORES CONSOLIDATE MANUFACTURERS SCRAMBLE TO ADJUST BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL AS FEDERATED DEPARTMENT STORES INC JOCKEYS TO MERGE WITH RH MACY & CO IN AN ATTEMPT TO CREATE THE NATION'S LARGEST DEPARTMENTSTORE CHAIN APPAREL VENDORS ARE SCRAMBLING TO REFASHION THEIR BUSINESSES TO SUPPLY THE MEGASTORES THAT HAVE COME TO DOMINATE THE INDUSTRY THE MERGERS AND CLOSINGS OF DEPARTMENT STORES IN RECENT YEARS HAVE CONCENTRATED POWER IN THE HANDS OF A FEW MAJOR PLAYERS INCLUDING MAY DEPARTMENT STORES CO DILLARD DEPARTMENT STORES INC AND DAYTON HUDSON CORP WHO NOW HOLD MORE SWAY THAN EVER OVER MANUFACTURERS APPAREL ACCOUNTS FOR MORE THAN 60 OF ALL DEPARTMENTSTORE MERCHANDISE AND FOR SUPPLIERS STAYING VIABLE HAS MEANT SHORTENING THE TIME IT TAKES TO MAKE AND DELIVER MERCHANDISE CUTTING COSTS AND IN SOME CASES OPENING THEIR OWN OUTLET STORES RETAILERS HAVE CONSOLIDATED IN ORDER TO BRING COSTS DOWN SO THAT THEY CAN PASS THOSE SAVINGS ON TO CONSUMERS SAYS MARIE BENINATI DIRECTOR OF RETAIL MARKET STRATEGIES AT KURT SALMON ASSOCIATES APPAREL INDUSTRY CONSULTANTS AS A RESULT SHE SAYS APPAREL MAKERS HAVE HAD TO BE MORE RESPONSIVE BY SHORTENING THEIR MANUFACTURING CYCLES TO GET THE RIGHT MERCHANDISE TO THE STORES AS FAST AS POSSIBLE IN CONTRAST TO THE HEADIER 1980S WHEN DEPARTMENT STORES TOUTED HIGHEND MERCHANDISE THE RETAILERS ARE NOW EMPHASIZING MORE MODERATELY PRICED GOODS TO COMPETE WITH DISCOUNT AND SPECIALTY STORES THE TREND TOWARD VALUE BRANDS WHICH BEGAN IN THE LATE 1980S HAS FAVORED SUCH APPAREL MARKETERS AS LIZ CLAIBORNE INC JONES APPAREL GROUP INC AND TOMMY HILFIGER CORP ALL OF WHICH HAVE GAINED DEPARTMENTSTORE MARKET SHARE AT THE EXPENSE OF SMALLER SUPPLIERS FASHION HOUSES WITH SALES UNDER 10 MILLION ARE BEING SQUEEZED OUT BECAUSE THEY CAN'T DELIVER THE VOLUME AND HIGHER PROFIT MARGINS THAT THE BIG CHAINS NOW REQUIRE AND WITHOUT SUFFICIENT ORDERS MORE APPAREL MAKERS HAVE BEEN LEFT IN THE COLD IN 1992 562 APPAREL AND TEXTILE FIRMS WENT OUT OF BUSINESS UP FROM 338 BUSINESS FAILURES IN 1985 ACCORDING TO DUN AND BRADSTREET CORP A RECENT KURT SALMON SURVEY OF DEPARTMENT STORES SHOWED THAT ABOUT 55 HAD EITHER TRIMMED THE NUMBER OF SUPPLIERS THEY DO BUSINESS WITH OR PLANNED TO DO SO DURING THE 1980S WHEN APPAREL SALES ZOOMED AND DEPARTMENT STORES EXPANDED APPAREL MAKERS LIVED A FAT LIFE SAYS TODD SLATER A RETAIL AND APPAREL ANALYST AT UBS SECURITIES HE ADDS THAT AS CONSUMER DEMAND HAS WANED STORES HAVE GOTTEN LEANER AND TOUGHER THEY CAN NO LONGER TIE UP THEIR ASSETS IN SLOWTURNING FRINGE MERCHANDISE FOR INSTANCE TO BURNISH ITS EXCLUSIVE IMAGE THE 49STORE SAKS FIFTH AVENUE CHAIN HAS BEEN PHASING OUT LINES CARRIED BY MANY OF ITS COMPETITORS IN THE PAST YEAR SAKS DROPPED A NUMBER OF BRANDS INCLUDING LIZ CLAIBORNE WOMEN'S SPORTSWEAR AND CAROLE LITTLE WOMEN'S APPAREL BECAUSE THEY PREFER TO DO BUSINESS WITH A FEW BIG CHAINS RATHER THAN CHASE A SHRINKING NUMBER OF INDEPENDENT SPECIALTY STORES MOST APPAREL MAKERS NOW VIE FOR POSITIONS ON A DEPARTMENT STORE'S MATRIX OR MOSTFAVOREDVENDOR LIST THIS IN EFFECT MAKES THEM THE INFORMAL PARTNERS OF THEIR DEPARTMENTSTORE CUSTOMERS AS STORES CENTRALIZE AND STREAMLINE THEIR BUYING OPERATIONS BUT FORGING STRONG TIES WITH A FEW BIG STORES IS OUT OF THE QUESTION FOR MOST SMALL VENDORS AND GIVEN THE WHIMS OF THE FASHION BUSINESS IT CARRIES RISKS EVEN FOR THE CHOSEN ACCORDING TO MARY ANN WHEATON PRESIDENT OF WHEATON INTERNATIONAL WHICH MANAGES DESIGNER BYRON LARS YOU HAVE TO BE CAREFUL THAT YOU AREN'T EATEN UP BY ONE STORE GROUP SHE SAYS BECAUSE THOSE RELATIONSHIPS AREN'T FOREVER HARD BARGAINS SUCH RELATIONSHIPS ALSO COME AT A PRICE RETAILERS FOR EXAMPLE OFTEN EXPECT THEIR CORE SUPPLIERS TO INVEST IN ELABORATE COMPUTERIZED INVENTORY SYSTEMS POWERFUL CHAINS MAY AND DILLARD IN PARTICULAR DRIVE PARTICULARLY HARD BARGAINS WITH VENDORS REQUIRING THEM TO GENERATE HIGHER PROFIT MARGINS AND PAY A BIGGER SHARE OF ADVERTISING AND PROMOTIONAL EXPENSES BUT TO BOOK HUGE ORDERS VENDORS WILLINGLY COMPLY WITH ORDERS FROM ONE OF THESE STORE GROUPS YOU CAN LITERALLY STAY IN BUSINESS SAYS MS WHEATON VF CORP SAYS IT HAS MADE MILLIONS OF DOLLARS IN CAPITAL INVESTMENTS TO UPDATE ITS OPERATIONS IN RECENT YEARS IN 1993 ABOUT HALF OF THE 1 BILLION IN SALES OF ITS LEE JEANS DIVISION WERE DRIVEN THROUGH COMPUTERIZED HOOKUPS TO ITS DEPARTMENTSTORE RETAIL PARTNERS THAT'S UP FROM ABOUT 5 TO 10 A COUPLE OF YEARS AGO WITH THIS COMPUTERIZED SYSTEM LEE CAN TRACK DAILY RETAIL SALES AT STORES ADJUST ITS PRODUCTION SCHEDULES ACCORDING TO DEMAND AND REPLENISH RETAILERS QUICKLY THE DIVISION SAYS THE TURNAROUND TIME FROM RECEIPT OF AN ORDER TO SHIPMENT HAS BEEN CUT IN HALF TO AN AVERAGE OF SEVEN DAYS FROM 14 DAYS TWO YEARS AGO EVEN WORLDFAMOUS DESIGNER LABELS ARE RUSHING TO ADJUST BECAUSE MOST DEPARTMENT STORES NO LONGER SELL COUTURE DESIGN HOUSES ARE STEPPING UP PROMOTION OF THEIR LESSEXPENSIVE SECONDARY COLLECTIONS SUCH AS GIORGIO ARMANI'S AX DONNA KARAN'S DKNY AND CALVIN KLEIN'S CK LABELS AND STORES LIKE SAKS AND BLOOMINGDALE'S ARE PUSHING HIGHFASHION HOUSES TO GIVE THEM MORE EXCLUSIVE MERCHANDISE AT CAROLE LITTLE A 285 MILLION LOS ANGELESBASED WOMEN'S APPAREL MAKER DEPARTMENT STORES NOW ACCOUNT FOR NEARLY 95 OF ITS BUSINESS UP FROM 60 A DECADE AGO DOING BUSINESS WITH THEM IS A LITTLE MORE COMPLICATED THAN IT USED TO BE CONCEDES LEONARD RABINOWITZ CAROLE LITTLE'S PRESIDENT CAROLE LITTLE HAS INVESTED HEAVILY IN COMPUTERS AND MANUFACTURING IMPROVEMENTS AND IT HAS EXPANDED PRODUCTION TO GREATLY DIVERSIFY ITS LINE THIS YEAR FOR EXAMPLE CAROLE LITTLE TOOK THE COSTLY STEP OF ADDING 70 MORE STOCKKEEPING UNITS OR DIFFERENT INVENTORY ITEMS TO ITS COLLECTION IN ORDER TO PROVIDE EXCLUSIVES FOR THE BIG STORES YOU HAVE TO GIVE THEM A BIGGER MIX WITH MORE TO PICK FROM MR RABINOWITZ SAYS WHAT APPAREL MAKERS ARE MOVING TOWARD IS MASSPRODUCED STYLES INDIVIDUALLY CUSTOMIZED FOR SPECIFIC RETAILERS SAYS KURT SALMON'S MS BENINATI TO STAY AFLOAT SOME SMALL APPAREL MAKERS HAVE THEMSELVES CONSOLIDATED JUST YESTERDAY OUTERWEAR MAKER LONDON FOG CORP WITH ANNUAL SALES OF ABOUT 350 MILLION SAID IT SIGNED A LETTER OF INTENT TO MERGE WITH PACIFIC TRAIL INC A 50YEAROLD SEATTLE OUTERWEAR COMPANY WITH ANNUAL SALES OF 60 MILLION A MOVE THAT WOULD CREATE PERHAPS THE BIGGEST OUTERWEAR COMPANY IN THE MARKET IN POOLING RESOURCES WE WILL BE ABLE TO RESPOND BETTER TO THE BIG RETAILERS WITH PRODUCTS THAT ARE STYLED BETTER AND PRICED BETTER GIVING THE BEST POSSIBLE VALUE THAT CONSUMERS DEMAND TODAY SAYS RONALD EPPERSON THE PRESIDENT OF PACIFIC TRAIL ST LOUISBASED KELLWOOD CORP A 1 BILLION APPAREL MANUFACTURER HAS ACQUIRED 15 APPAREL BUSINESSES SINCE 1985 INCLUDING CAPE CODCRICKET PARSONS PLACE AND ROBERT SCOTT LTD IN EACH ACQUISITION THE EXISTING MANAGEMENT CONTINUES TO RUN THE DIVISION UNDER KELLWOOD OWNERSHIP KELLWOOD SAYS IT WANTS TO BUY STILL MORE APPAREL BRANDS TO COMPLEMENT EXISTING LINES SOME SUPPLIERS ARE BECOMING RETAILERS THEMSELVES OPENING FACTORY OUTLETS TO PROTECT THEIR RETAIL DISTRIBUTION AND IN BRAZENLY LOCATING OUTLETS NEAR MALLS THEY ARE SEEMINGLY UNCONCERNED ABOUT IRRITATING THEIR DEPARTMENTSTORE ACCOUNTS OUTLETS HAVE BECOME MAJOR PROFIT CENTERS FOR SHIRT MAKER PHILLIPSVAN HEUSEN CORP WHICH OPERATES MORE THAN 300 OUTLET STORES AND WOMEN'S WEAR MAKER HARVE BENARD LTD WITH 40 OUTLET STORES 9401130003 940113 DR PEPPER AND UK'S TWINING TEAM UP TO SELL ICED TEA TO GROWING US MARKET DALLAS DR PEPPER/SEVENUP COS HOPING FOR A STAKE IN THE HOTTEST NICHE OF THE BEVERAGE BUSINESS HAS TEAMED UP WITH BRITAIN'S TWINING CROSFIELD & CO TO SELL ICED TEA IN THE US DR PEPPER THE THIRDLARGEST US SOFTDRINK VENDOR SAID ITS SEVENUP USA UNIT AND TWINING FORMED A VENTURE TO DEVELOP AND MARKET THE TEA EXPECTED TO HIT STORE SHELVES THIS SPRING UNDER THE TWINING NAME ALTHOUGH TWINING IS A HEAVYWEIGHT IN SPECIALTY TEAS IN EUROPE IT'S THE COMPANY BEHIND THE EARL GREY AND BREAKFAST BLENDS NEITHER COMPANY HAS YET DABBLED IN READYTODRINK ICED TEAS PROMPTING ANALYSTS TO WONDER WHETHER THE JOINT VENTURE HASN'T ALREADY MISSED THE MARK THIS SOUNDS LIKE A DOLLAR SHORT TO ME SAID WILLIAM LEACH A BEVERAGE ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP IN NEW YORK IT'S A CROWDED MARKET ALREADY INDEED PEPSICO INC AND COCACOLA CO DR PEPPER'S BIGGEST COMPETITORS IN THE SOFTDRINK WARS LONG AGO PICKED SIDES ON THE ICEDTEA FRONT PEPSI SELLS TEA THROUGH A JOINT VENTURE WITH THOMAS J LIPTON CO AND COKE HAS JOINED WITH NESTLE SA TO SELL THE NESTEA BRAND LIPTON AND NESTEA RANK SECOND AND THIRD RESPECTIVELY BEHIND MARKET LEADER SNAPPLE BEVERAGE CORP IN A READYTODRINK TEA MARKET THAT ANALYSTS GUESS COULD GROW 50 THIS YEAR TO ABOUT 1 BILLION IN RETAIL SALES JIM BALL A DR PEPPER SPOKESMAN SAID THE COMPANY BELIEVES THE MARKET IS FAR FROM SATURATED IT'S A VERY VERY EXPLOSIVE SEGMENT OF BEVERAGES A SPOKESMAN FOR LONDONBASED TWINING A UNIT OF ASSOCIATED BRITISH FOODS PLC COULDN'T BE REACHED 9401130002 940113 PRUDENTIAL IS FACING NEW YORK STATE PROBE ON PENSIONPLAN SALES NEWARK NJ NEW YORK STATE INSURANCE OFFICIALS ARE INVESTIGATING WHETHER PRUDENTIAL INSURANCE CO OF AMERICA VIOLATED STATE RULES GOVERNING THE SALE OF GROUP PENSION PLANS THE STATE SAYS PRUDENTIAL THE NATION'S LARGEST INSURER SOLD CERTAIN GROUP PENSION PRODUCTS BEFORE RECEIVING STATE APPROVAL IN OTHER CASES THE STATE SAYS PRUDENTIAL SOLD PRODUCTS AFTER THE STATE REJECTED THEM KEVIN FOLEY OF THE NEW YORK INSURANCE DEPARTMENT SAID THAT THOUSANDS OF INDIVIDUALS WERE COVERED BY THE PENSION PLANS UNDER INVESTIGATION BUT THAT NONE ARE AT RISK OF LOSING THEIR MONEY PRUDENTIAL SAID IN A STATEMENT THAT FEWER THAN 100 PEOPLE WERE AFFECTED THE NEWARK NJ COMPANY DISCOVERED THE SITUATION ITSELF AND TOOK ITS FINDINGS TO THE STATE IN SEPTEMBER THE EXECUTIVES RESPONSIBLE FOR THE PROBLEM HAVE BEEN DISCIPLINED PRUDENTIAL SAID PEOPLE FAMILIAR WITH THE MATTER SAID THE OFFICIALS ARE NO LONGER WITH THE COMPANY ANY TIME YOU FIND A COMPANY NEEDED PRIOR APPROVAL AND THEN FLOUTED IT IT BECOMES A SERIOUS MATTER MR FOLEY SAID CALLING THE VIOLATIONS TECHNICAL THE PENSION PRODUCTS INVOLVED ARE SOCALLED DEFINEDCONTRIBUTION PLANS INCLUDING 401KS 403BS AND INDIVIDUAL RETIREMENT ACCOUNTS BOUGHT BY CORPORATIONS ON BEHALF OF THEIR EMPLOYEES THEY WERE SOLD BY PRUDENTIAL ASSET MANAGEMENT CO PENSION PRODUCTS ARE ONE OF PRUDENTIAL'S BIGGEST LINES OF BUSINESS PRUDENTIAL IS WORKING WITH THE DEPARTMENT ON A SETTLEMENT BUT NO SETTLEMENT WILL BE MADE UNTIL THE STATE CONCLUDES ITS INVESTIGATION IN ADDITION TO FORCING THE COMPANY TO REVERSE SOME OF THE SALES NEW YORK COULD FINE PRUDENTIAL INSURANCE DEPARTMENT FINES FOR VIOLATIONS OF THIS TYPE ARE GENERALLY SMALL 9401130001 940113 LIMITING CABLE PORN PRIVATELY BY DAVID ANDREW PRICE THERE IS MUCH TO BE SAID FOR THE CIVIL LIBERTARIAN MAXIM THAT IF YOU DON'T LIKE PORNOGRAPHY DON'T BUY IT THE FREE MARKET COROLLARY WOULD SEEM TO BE THAT IF YOUR CUSTOMERS DON'T LIKE PORNOGRAPHY DON'T SELL IT BUT A RECENT FEDERAL COURT DECISION HAS TAKEN THAT OPTION AWAY FROM CABLE TELEVISION COMPANIES IN A 1992 ACT CONGRESS HAD PERMITTED NOT REQUIRED CABLE OPERATORS TO BAN INDECENT PROGRAMMING FROM PUBLIC AND LEASEDACCESS CHANNELS CONGRESS DID SO IN RESPONSE TO COMPLAINTS ABOUT EXPLICIT SEXUAL IMAGES THAT A VIEWER WAS LIKELY TO ENCOUNTER ON EVEN THE MOST INNOCENT SAMPLING OF CABLE CHANNELS ON NOV 23 1993 IN ALLIANCE FOR COMMUNITY MEDIA V FCC A THREEJUDGE PANEL OF THE US COURT OF APPEALS FOR THE DC CIRCUIT RULED THAT CONGRESS HAD VIOLATED THE FIRST AMENDMENT BY PERMITTING CABLE OPERATORS TO TAKE THOSE MEASURES LAST FRIDAY THE CLINTON ADMINISTRATION PETITIONED THE FULL COURT TO RECONSIDER THE CASE IF THE PANEL'S DECISION IS NOT OVERTURNED THE RESULT FOR MANY VIEWERS ESPECIALLY PARENTS MAY BE TO MAKE CABLE SEEM MORE LIKE A MINEFIELD THAN A SUPERHIGHWAY PUBLICACCESS AND LEASEDACCESS CHANNELS ARE PART OF A CABLE SUBSCRIBER'S BASIC SERVICE PACKAGE THE CABLE COMMUNICATIONS POLICY ACT OF 1984 GAVE MUNICIPALITIES THE RIGHT TO NEGOTIATE FOR PUBLICACCESS CHANNELS AS PART OF THEIR FRANCHISE AGREEMENTS WITH CABLE OPERATORS THE ACT ESSENTIALLY PROVIDED THAT PUBLICACCESS CHANNELS MUST BE OPEN AT NO CHARGE TO ALL LOCAL RESIDENTS WHO WANT TO BROADCAST NONCOMMERCIAL MATTER ALSO THE ACT DIRECTLY REQUIRED OPERATORS TO RESERVE A NUMBER OF LEASEDACCESS CHANNELS FOR COMMERCIAL USE PROBLEMS AROSE BECAUSE THE 1984 LEGISLATION PROHIBITED OPERATORS FROM EXERCISING ANY EDITORIAL CONTROL OVER PUBLICACCESS OR LEASEDACCESS CHANNELS THE PREDICTABLE RESULT WAS THAT IN SOME AREAS NUDITY AND SEX ACTS BECAME PART OF THE BASIC CABLE PACKAGE ESPECIALLY ON LEASEDACCESS CHANNELS WHICH FEATURED EXPLICIT ADVERTISEMENTS FOR ADULT FILMS PHONE LINES AND THE LIKE UNDER FEDERAL LAW THE OPERATORS WERE POWERLESS TO RESPOND TO SUBSCRIBERS' COMPLAINTS BY KEEPING THAT MATERIAL OFF WHEN CONGRESS REACTED TO THE SITUATION IN 1992 ONE STEP IT TOOK WAS TO RESTORE SOME EDITORIAL CONTROL TO THE OPERATORS THE FEDERAL COMMUNICATIONS COMMISSION WAS THEN PROMPTLY GREETED BY A FIRST AMENDMENT CHALLENGE IN THE DC CIRCUIT FROM PROGRAMMERS AND CIVIL LIBERTIES GROUPS BUT THE FIRST AMENDMENT RESTRICTS ONLY GOVERNMENT CENSORSHIP NOT THE EDITORIAL DECISIONS OF PRIVATE COMPANIES WHAT CONGRESS HAD DONE IN RESTORING EDITORIAL CONTROL WAS TO REDUCE GOVERNMENT'S INVOLVEMENT IN CONTENT NOT INCREASE IT IN STRIKING DOWN THE CHANGE IN THE LAW THE DC CIRCUIT TREATED IT IN THE PANEL'S WORDS AS DEPUTIZING CABLE OPERATORS TO CENSOR ON BEHALF OF THE GOVERNMENT BECAUSE THE CHANGE IN THE LAW HAD THE EFFECT OF SIGNIFICANTLY ENCOURAGING PRIVATE CENSORSHIP ANY EDITORIAL DECISIONS OF THE OPERATORS TO BAN INDECENT MATERIAL ON THE ACCESS CHANNELS WERE STATE ACTION ATTRIBUTABLE TO THE GOVERNMENT THE PANEL BASED ITS DECISION ON A 1967 SUPREME COURT CASE REITMAN V MULKEY THE HIGHWATER MARK IN THE EXPANSION OF STATE ACTION IN THAT CASE CALIFORNIANS HAD ENACTED A STATE CONSTITUTIONAL AMENDMENT TO ALLOW RACIAL DISCRIMINATION IN HOUSING AND TO OVERRIDE THE STATE'S FAIR HOUSING LAWS THE QUESTION WAS WHETHER THE EQUAL PROTECTION CLAUSE OF THE US CONSTITUTION MADE THE AMENDMENT INVALID THE EQUAL PROTECTION CLAUSE HAD LONG BEEN HELD NOT TO CONTROL PRIVATE DISCRIMINATION AT THE FEDERAL LEVEL ONLY CIVILRIGHTS STATUTES DO SO THE SUPREME COURT FOUND HOWEVER THAT THE CALIFORNIA AMENDMENT ENCOURAGED PRIVATE DISCRIMINATION AND INVOLVED THE STATE IN IT MAKING PRIVATE ACTS OF DISCRIMINATION INTO ILLEGAL STATE ACTION IN ITS DECISION THE DC CIRCUIT REGARDED THE 1992 CABLE ACT PERMITTING PRIVATE CENSORSHIP AS ANALOGOUS TO THE AMENDMENT IN REITMAN PERMITTING PRIVATE DISCRIMINATION THE PANEL'S EQUATION OF A CABLE COMPANY'S EDITORIAL CONTROL WITH STATE ACTION MAY NOT HOWEVER ADEQUATELY REFLECT THE SUPREME COURT'S STATEACTION DECISIONS IN THE 25 YEARS AFTER REITMAN MOST NOTABLY THE SUPREME COURT'S 1976 DECISION IN HUDGENS V NLRB MADE CLEAR THAT THE FIRST AMENDMENT DID NOT FORBID THE NATIONAL LABOR RELATIONS BOARD FROM ALLOWING A SHOPPING CENTER TO EXCLUDE PICKETERS EVEN THOUGH SUCH A DECISION WOULD AUTHORIZE PRIVATE CENSORSHIP BY IMPLICATION THE HUDGENS DECISION SEEMS TO INDICATE THAT GOVERNMENT AUTHORIZATION OF PRIVATE EDITORIAL DECISIONS UNLIKE GOVERNMENT AUTHORIZATION OF RACIAL DISCRIMINATION IS SIMPLY NOT A CONSTITUTIONAL ISSUE YET THE PRACTICAL CONSEQUENCES OF THE DC CIRCUIT'S DECISION ARE REAL AND THEY EXTEND BEYOND CABLE TELEVISION THE CLINTON ADMINISTRATION'S PLAN FOR THE NATIONAL INFORMATION INFRASTRUCTURE TOUTED BY VICE PRESIDENT GORE IN LOS ANGELES EARLIER THIS WEEK CALLS FOR THE FEDERAL GOVERNMENT TO HAVE AN ACTIVIST ROLE IN AMONG OTHER THINGS SETTING TECHNICAL STANDARDS FUNDING RESEARCH AND DEVELOPMENT AND ENSURING UNIVERSAL ACCESS TO INFORMATION RESOURCES SUCH AS COMPUTER NETWORKS AT SOME POINT FEDERAL INVOLVEMENT IN THIS INFRASTRUCTURE COULD BE HELD UNDER THE DC CIRCUIT'S MODEL TO TRANSFORM THE CONTENT DECISIONS OF SERVICE PROVIDERS INTO ILLEGAL CENSORSHIP THAT WOULD FRUSTRATE THE WILL OF INFORMATION CONSUMERS WHO PAY IN PART FOR JUST THOSE EDITORIAL JUDGMENTS OF COURSE THE MARKET MAY ULTIMATELY REJECT THE CENSORING OF SEXUAL OR OTHER MATERIAL FROM INFORMATION SERVICES IF PEOPLE WANT THE MATERIAL BUT THE VOTES FOR AND AGAINST THAT TYPE OF EDITORIAL CONTROL SHOULD BE CAST BY CUSTOMERS VOTING WITH DOLLARS NOT BY FEDERAL JUDGES MR PRICE IS AN ATTORNEY IN WASHINGTON 9401120188 940112 TEXAS JOURNAL INSURANCE EXECUTIVE POULOS GETS WISH TO STEP INTO THE SPOTLIGHT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER 23 YEARS AS HAROLD S HOOK'S FRIEND AND ALLY AT AMERICAN GENERAL CORP MICHAEL J POULOS HAS SUDDENLY BECOME AN ADVERSARY OF SORTS MR POULOS 62 YEARS OLD RESIGNED AS VICE CHAIRMAN OF THE BIG HOUSTON LIFE INSURANCE COMPANY IN SEPTEMBER AND IN A MOVE THAT SURPRISED EVEN HIS CLOSEST FRIENDS ANNOUNCED HE WAS TAKING A JOB AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTERN NATIONAL CORP THE ANNUITY AND LIFE INSURANCE UNIT CONSECO PLANS TO SPIN OFF IN AN INITIAL PUBLIC OFFERING NEXT MONTH THE COMPANY ALSO WILL BE BASED IN HOUSTON AND WILL COMPETE WITH MUCHLARGER AMERICAN GENERAL IN THE ANNUITY BUSINESS BY TAKING THE WESTERN NATIONAL JOB MR POULOS STEPS OUT OF THE SHADOW AS SECONDINCOMMAND AT AMERICAN GENERAL AND FULFILLS A LONGSOUGHT GOAL TO RUN A COMPANY WHICH HE KNEW WOULD BE UNLIKELY AT AMERICAN GENERAL BUT IT REMAINS TO BE SEEN WHETHER MR POULOS'S MOVE INTO THE LIMELIGHT WILL BE SUCCESSFUL ALTHOUGH HE'S HIGHLY REGARDED IN INSURANCE CIRCLES HE HASN'T EVER BEEN AT THE HELM OF A COMPANY FOR HIS PART MR HOOK SAYS HE HASN'T ANY DOUBT MR POULOS HAS WHAT IT TAKES TO LEAD A COMPANY AT ONE POINT MANY OBSERVERS SPECULATED MR POULOS MIGHT BE NAMED INTERIM CHAIRMAN AFTER MR HOOK ALSO 62 ANNOUNCED HIS PLANS TO STEP DOWN AT THE END OF THIS YEAR BUT MR POULOS LOBBIED AGAINST THAT IDEA NOTING TO DIRECTORS THAT WITH THE COMPANY'S MANDATORY RETIREMENT AT 65 IT WOULD BE DISRUPTIVE TO APPOINT HIM FOR SUCH A SHORT TERM THUS IT LOOKED AS IF THE TWO FRIENDS WHO MET IN THE 1960S WHEN BOTH WORKED AT UNITED STATES LIFE INSURANCE IN NEW YORK WOULD FINISH THEIR CAREERS TOGETHER AT THE SAME COMPANY I ALWAYS FIGURED I'D BE THE FIRST ONE OUT AND THAT MIKE WOULD FOLLOW SOON AFTER SAYS MR HOOK BUT A BREAKFAST MEETING LAST FALL BETWEEN MR POULOS AND ANOTHER INSURANCE INDUSTRY FRIEND CONSECO CHAIRMAN STEPHEN C HILBERT CHANGED THAT MR HILBERT OFFERED THE WESTERN NATIONAL JOB TO MR POULOS WHO INITIALLY HESITATED BUT THE CHANCE TO RUN HIS OWN SHOW EVENTUALLY SWAYED HIM HE SAYS THE CHANCE TO SPEND EVEN FIVE YEARS AS A CEO IS A CHANCE I'LL NEVER HAVE AGAIN HE SAYS MR POULOS WILL BE WELL COMPENSATED UNDER A FIVEYEAR EMPLOYMENT AGREEMENT HE WILL EARN 750000 A YEAR PLUS A 500000 BONUS FOR 1993 FROM 1994 TO 1996 HE'LL EARN BONUSES OF AT LEAST 750000 A YEAR IN ADDITION HE WAS AWARDED 10YEAR OPTIONS TO PURCHASE AS MANY AS 125 MILLION WESTERN NATIONAL SHARES AT THE INITIAL OFFERING PRICE IN HIS NEW ROLE MR POULOS WILL COMPETE TO SOME DEGREE AGAINST HIS FORMER EMPLOYER BOTH COMPANIES ARE RESPECTED PLAYERS IN THE ANNUITIES MARKET NEITHER COMPANY HOWEVER MAKES MUCH OF THE RIVALRY BECAUSE OF THEIR SIZES WESTERN NATIONAL RECEIVES ABOUT 100 MILLION A YEAR IN ANNUITY DEPOSITS AMERICAN GENERAL RECEIVES ABOUT 2 BILLION MOSTLY FROM TAXSHELTERED ANNUITY PRODUCTS MARKETED THROUGH 403B RETIREMENT PLANS FOR EMPLOYEES OF NONPROFIT AGENCIES WESTERN NATIONAL THOUGH IT HAS 18 BILLION OF ITS ASSETS TIED TO 403BRELATED PRODUCTS HASN'T PLAYED UP THAT SIDE OF THE BUSINESS IN RECENT YEARS OPTING INSTEAD TO FOCUS ON FASTGROWING INDIVIDUAL ANNUITY PRODUCTS SOLD THROUGH BANKS BUT MR POULOS IS KEEN ON EXPANDING THE 403B BUSINESS BY PICKING UP WHAT AMERICAN GENERAL LEAVES BEHIND MR POULOS ALSO PLANS TO AGGRESSIVELY PURSUE SOCALLED STRUCTURED SETTLEMENT ANNUITIES ALTERNATIVES TO LUMPSUM PERSONALINJURY SETTLEMENTS THAT PROPERTY AND CASUALTY COMPANIES PURCHASE TO PROVIDE A STREAM OF INCOME TO INJURED PERSONS AS FOR HIS RELATIONSHIP WITH MR HOOK MR POULOS SAYS HIS DEPARTURE HASN'T SOURED THEIR FRIENDSHIP AT AMERICAN GENERAL THEY MET FOR LUNCH NEARLY EVERY SATURDAY NOW THAT MR POULOS HAS LEFT THEY STILL MEET ABOUT EVERY OTHER WEEK 9401120186 940112 SEIKO EPSON DUMPS NEC SWITCHES TO IBM STANDARD TOKYO THE NEXTTOLAST HOLDOUT IN JAPAN'S PERSONALCOMPUTER WARS HAS THROWN IN THE TOWEL SEIKO EPSON CORP THE ONLY COMPANY TO CLONE PCS MADE BY JAPANESE MARKET LEADER NEC CORP ON TUESDAY SAID IT WILL IMMEDIATELY START SELLING PCS COMPATIBLE WITH THOSE MADE BY INTERNATIONAL BUSINESS MACHINES CORP UNTIL NOW SEIKO EPSON HAD BEEN THE ONLY JAPANESE PC MAKER EXCEPT NEC THAT HAD REFUSED TO SELL IBMCOMPATIBLE PCS IN JAPAN SEIKO EPSON'S MOVE UNDERSCORES THE THREAT NEC'S COMPUTERS FACE FROM IBMCOMPATIBLE MACHINES MORE THAN A YEAR AGO US MANUFACTURERS IBM COMPAQ COMPUTER CORP AND DELL COMPUTER CORP UNLEASHED A BARRAGE OF LOWPRICED IBMCOMPATIBLE PCS IN JAPAN 9401120185 940112 WHO'S NEWS CLEVELANDCLIFFS INC CLEVELANDCLIFFS INC CLEVELAND G FRANK JOKLIK 65 YEARS OLD RETIRED CHIEF EXECUTIVE OFFICER OF KENNECOTT CORP A UNIT OF RTZ CORP WAS ELECTED A DIRECTOR OF THIS IRONORE MINING CONCERN HIS ELECTION INCREASES THE COMPANY'S BOARD TO 13 MEMBERS 9401120184 940112 WHO'S NEWS CHAMPION ENTERPRISES INC CHAMPION ENTERPRISES INC AUBURN HILLS MICH GEORGE R MRKONIC 41 YEARS OLD EXECUTIVE VICE PRESIDENT OF KMART CORP'S SPECIALTY RETAIL GROUP WAS NAMED A DIRECTOR OF THIS PRODUCER OF MANUFACTURED HOUSING INCREASING THE SIZE OF THE BOARD TO SEVEN 9401120183 940112 WHO'S NEWS COMPUWARE CORP COMPUWARE CORP FARMINGTON HILLS MICH JOHN M ABRAHAM 38 YEARS OLD FORMERLY RESPONSIBLE FOR WORLDWIDE SOFTWARE DEVELOPMENT AT BOOLE & BABBAGE INC AND A CONSULTANT TO COMPUWARE WAS NAMED A SENIOR VICE PRESIDENT MERGERS AND ACQUISITIONS AT THE SOFTWARE MAKER 9401120182 940112 WHO'S NEWS TERADYNE INC TERADYNE INC BOSTON GEORGE CHAMILLARD 55 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS MAKER OF SEMICONDUCTOR TEST EQUIPMENT HE WAS PREVIOUSLY VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S CONNECTION SYSTEMS DIVISION IN NASHUA NH 9401120181 940112 WHO'S NEWS DYNCORP DYNCORP RESTON VA PATRICK G DEASY 55 YEARS OLD WAS ELECTED A CORPORATE VICE PRESIDENT OF THIS PROFESSIONAL AND TECHNICAL SERVICE PROVIDER MR DEASY IS CURRENTLY PRESIDENT OF THE DYNAIR GROUND SERVICES GROUP UNIT 9401120180 940112 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON WILLIAM L WEISS CHAIRMAN OF AMERITECH CORP WAS ELECTED TO THE BOARD OF THIS MANUFACTURING AND NATURAL GAS PIPELINE CONCERN THE ELECTION OF MR WEISS 64 YEARS OLD INCREASES THE BOARD TO 11 MEMBERS 9401120179 940112 WHO'S NEWS DAYTON HUDSON CORP DAYTON HUDSON CORP MINNEAPOLIS DOUGLAS A SCOVANNER 38YEAROLD SENIOR VICE PRESIDENT FINANCE OF FLEMING COS WAS NAMED TO THE VACANT POST OF SENIOR VICE PRESIDENT FINANCE OF THIS RETAILING CONCERN 9401120178 940112 WHO'S NEWS TENNESSEE VALLEY AUTHORITY TENNESSEE VALLEY AUTHORITY KNOXVILLE TENN JOHN B TURNER 51 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT FOR EDUCATION TRAINING AND DIVERSITY AT THIS UTILITY MR TURNER HAD BEEN PRESIDENT OF KNOXVILLE COLLEGE 9401120177 940112 INTERNATIONAL USJAPAN TRADE TALKS HIT IMPASSE OFFICIAL SAYS TOKYO WITH THE DEADLINE JUST ONE MONTH AWAY TRADE TALKS BETWEEN THE US AND JAPAN ARE GOING NOWHERE FAST JOAN E SPERO A TOP US NEGOTIATOR SAID IT'S BEEN PREDICTABLE IN THAT THE JAPANESE ARE TOUGH NEGOTIATORS SAID MS SPERO UNDERSECRETARY OF STATE FOR ECONOMIC BUSINESS AND AGRICULTURAL AFFAIRS THEY PLAY JUDO DEFENSE ALL THE TIME WAITING UNTIL THE END OF THE DAY AND THE 11TH HOUR TO GRUDGINGLY YIELD SOMETHING SHE ADDED MS SPERO IS IN TOKYO FOR A FOURDAY ASSESSMENT OF THE DISCUSSIONS ON INCREASING US ACCESS TO THE JAPANESE MARKET FOR INSURANCE AUTOMOBILES AND AUTO PARTS AND GOVERNMENT PROCUREMENT OF MEDICAL AND TELECOMMUNICATIONS EQUIPMENT DESPITE THE DEADLOCK MS SPERO CITED A POSSIBILITY OF ADVANCEMENT IN TWO MAIN AREAS OF THE FRAMEWORK TALKS MACROECONOMIC ISSUES SUCH AS REDUCING JAPAN'S CURRENTACCOUNT SURPLUS AND BOOSTING IMPORTS OF GOODS AND SERVICES AND COOPERATION ON ISSUES OF GLOBAL IMPORTANCE SUCH AS ENVIRONMENTAL PROTECTION OVERPOPULATION AND AIDS 9401120176 940112 ISSUER OF CLINTON WHITEWATER REPORT MADE DISCLAIMER HAD LINK TO FRIEND BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ACCOUNTING FIRM COMMISSIONED IN 1992 IN AN EFFORT TO SQUELCH THE CONTROVERSY OVER THE CLINTONS' WHITEWATER DEVELOPMENT CO INVESTMENT REFUSED TO VOUCH FOR THE ACCURACY OF ITS FINDINGS WHAT'S MORE THE FIRM WHICH DEPICTED THE WHITEWATER REALESTATE VENTURE AS UNPROFITABLE WASN'T AS INDEPENDENT AS THE WHITE HOUSE HAS PORTRAYED IT THE REPORT WAS PREPARED BY PATTEN MCCARTHY & ASSOCIATES AT THE REQUEST OF JAMES LYONS A CLINTON FRIEND AND DENVER ATTORNEY IT TURNS OUT THAT MR LYONS AND LESLIE PATTEN HEAD OF THE DENVERBASED ACCOUNTING FIRM HAVE LONG BEEN FRIENDS AND BUSINESS ASSOCIATES AMONG OTHER THINGS THEY WERE THE PRINCIPAL OWNERS OF TWO COLORADO BANKS IN THE EARLY 1980S AS QUESTIONS PERSIST OVER THE WHITEWATER VENTURE PRESIDENT CLINTON SAID HE IS RECONSIDERING HIS OPPOSITION TO HAVING A SPECIAL COUNSEL APPOINTED TO INVESTIGATE THE MATTER DESPITE HIS AGREEMENT TO TURN OVER DOCUMENTS RELATED TO WHITEWATER IN A CBS NEWS INTERVIEW LAST NIGHT HE SAID THAT PEOPLE SAID THAT'S NOT ENOUGH' SO I THINK WE HAVE TO EVALUATE THAT AND SEE WHERE WE ARE THE WHITE HOUSE HAS RELIED HEAVILY ON THE SOCALLED LYONS REPORT SINCE EARLY 1992 TO REBUT POLITICAL CRITICISM OF THEIR BUSINESS DEALINGS WITH JAMES MCDOUGAL THE CLINTONS' WHITEWATER PARTNER AND PROPRIETOR OF THE FAILED MADISON GUARANTY SAVINGS & LOAN OF LITTLE ROCK ARK BUT IN A MARCH 1992 LETTER TO BILL AND HILLARY RODHAM CLINTON THE PATTEN FIRM INCLUDED A DISCLAIMER THAT ITS FINANCIAL FINDINGS SHOULDN'T BE CONSTRUED TO REPRESENT THE RESULTS OF AN ATTEST SERVICE OR COMPILATION OF FINANCIAL STATEMENTS DUE TO THE NATURE OF THE ENGAGEMENT AND INCOMPLETE OR UNAVAILABLE RECORDS THE LETTER WAS INCLUDED IN THE LYONS REPORT BUT HASN'T ATTRACTED ATTENTION ACCORDING TO DOUGLAS CARMICHAEL PROFESSOR OF ACCOUNTANCY AT CITY UNIVERSITY OF NEW YORK'S BARUCH COLLEGE THE DISCLAIMER MEANS THAT THE FIRM GAVE NO ASSURANCES AS TO THE ACCURACY OF THE LYONS REPORT THE FIRM INSTEAD WAS MERELY FUNCTIONING IN THE CAPACITY OF FINANCIAL CONSULTANTS WHO HAVE BEEN HIRED BY AN ATTORNEY SAID MR CARMICHAEL FORMER VICE PRESIDENT OF AUDITING AT THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS NO ONE SHOULD PLACE ANY RELIANCE IN WHAT THEY HAVE TO SAY IN THIS REPORT MR CARMICHAEL SAID THE LACK OF INDEPENDENCE WOULD BE JUST ANOTHER REASON NOT TO PAY ANY ATTENTION TO IT LAST NIGHT BRUCE LINDSEY A SENIOR WHITE HOUSE OFFICIAL TOOK SHARP ISSUE WITH MR CARMICHAEL'S ASSERTIONS THE FACT THAT THE ACCOUNTING FIRM SAYS IT COULDN'T VOUCH FOR THE ACCURACY OF THE WHITEWATER INFORMATION TO THE SAME DEGREE THEY COULD IN AN AUDIT ISN'T SURPRISING HE SAID WE'VE ALWAYS SAID THE RECORDS WERE INCOMPLETE MR PATTEN DECLINED THROUGH AN ATTORNEY TO COMMENT ABOUT THE WHITEWATER REPORT CITING ACCOUNTANTCLIENT PRIVILEGE MR LYONS SAID THAT CLINTON CAMPAIGN OFFICIALS SELECTED THE PATTEN FIRM FOR THE WHITEWATER JOB AFTER CONSIDERING AND REJECTING SEVERAL OTHER OPTIONS INCLUDING HIRING ONE OF THE BIG SIX ACCOUNTING FIRMS OR RETAINING A RETIRED PARTNER OF SUCH A FIRM MR LYONS SAID IN AN INTERVIEW YESTERDAY THAT THERE WAS NO CONFLICT OF INTEREST INVOLVED AND INSISTED THAT HIS TIES TO MR PATTEN DIDN'T PREJUDICE THE FINDINGS IN THE LYONS REPORT THE FIRM HAD NO RELATIONSHIP TO THE CAMPAIGN WHATSOEVER AND THEY HAD NO RELATIONSHIP TO ME AT THE TIME HE SAID HE SAID HE DISCLOSED TO CAMPAIGN OFFICIALS HIS LONGTIME RELATIONSHIP TO MR PATTEN A CERTIFIED PUBLIC ACCOUNTANT BUT SOME ACCOUNTING EXPERTS QUESTION THE HIRING OF THE PATTEN FIRM TO DO A FINANCIAL RECONSTRUCTION OF THE CLINTONS' WHITEWATER PARTNERSHIP WITH MR MCDOUGAL AND HIS FORMER WIFE SUSAN THE NOTION OF INDEPENDENCE IS REALLY SACROSANCT FOR AN AUDITOR SAID HOWARD SCHILIT ASSOCIATE PROFESSOR OF ACCOUNTING AT AMERICAN UNIVERSITY IN WASHINGTON I DON'T THINK IT WAS GOOD JUDGMENT ON THE PART OF THE CAMPAIGN TO RETAIN THE PATTEN FIRM WHOEVER HAD THE CHOICE SHOULD HAVE DONE A BETTER DUE DILIGENCE AND BETTER FACTFINDING TO DETERMINE THE RELATIONSHIP OF LYONS AND PATTEN THE LYONS REPORT WHICH CLINTON AIDES HAVE CHARACTERIZED AS INDEPENDENT HAS BEEN CRITICIZED FOR NOT GOING INTO CERTAIN SIGNIFICANT WHITEWATER TRANSACTIONS INVESTIGATORS FOR REPUBLICAN MEMBERS OF THE HOUSE BANKING COMMITTEE INTEND TO SCRUTINIZE HOW THE PATTEN FIRM REACHED ITS KEY FINDINGS INCLUDING THE CONCLUSION THAT THE CLINTONS LOST 68900 ON THEIR WHITEWATER INVESTMENT WHILE THE MCDOUGALS LOST 92200 MR LYONS SAID THE REPORT WASN'T INTENDED TO BE A FULL ACCOUNTING OF WHITEWATER FINANCES REMEMBER WE WEREN'T AFTER AN AUDIT WE WERE AFTER A FINANCIAL RECONSTRUCTION HE SAID THE OBJECTIVE WAS TO DETERMINE WHETHER THE CLINTONS HAD BEEN EXPOSED TO ANY FINANCIAL RISKS AND WHETHER THEY HAD INVESTED AND LOST MONEY ON WHITEWATER THOSE TWO QUESTIONS WERE ANSWERED IN A THOROUGH AND COMPLETE FASHION SAID MR LYONS A PARTNER IN THE DENVER FIRM ROTHGERBER APPEL POWER & JOHNSON MR LYONS TOOK ISSUE WITH MR MCDOUGAL'S RECENT ASSERTION THAT HE RECALLS THE CLINTONS' INVESTING ONLY 9000 IN WHITEWATER FRANKLY I THINK HIS MEMORY IS FAULTY HE SAID WE STAND BY OUR 68900 ESTIMATE IN THE LATE 1970S MESSRS LYONS AND PATTEN ALONG WITH ANOTHER LYONS LAW PARTNER WILLIAM P JOHNSON FORMED A BANK HOLDING COMPANY AND OPENED TWO BANKS GREENWOOD INDUSTRIAL BANK IN LITTLETON COLO IN 1980 AND ARAPAHOE INDUSTRIAL BANK IN ENGLEWOOD COLO IN 1982 ACCORDING TO STATE BANKING RECORDS MR LYONS SAID THEY SOLD OUT A YEAR OR SO LATER TO ANOTHER GROUP OF INVESTORS WHO MERGED THE BANKS IN 1986 THE SURVIVING ARAPAHOE BANK WHICH HAD ASSETS OF ABOUT 15 MILLION FAILED IN EARLY 1988 AND WAS LIQUIDATED BY STATE REGULATORS MR CLINTON'S COMMENTS ON CBS CAME AS SOME DEMOCRATIC SENATORS JOINED THE REPUBLICAN CHORUS CALLING ON ATTORNEY GENERAL JANET RENO TO NAME A SPECIAL COUNSEL FOR THE WHITEWATER CASE DEMOCRATIC SEN ROBERT KERREY OF NEBRASKA YESTERDAY CAME OUT IN FAVOR OF A SPECIAL COUNSEL JOINING SUGGESTIONS BY SENS DANIEL MOYNIHAN OF NEW YORK BILL BRADLEY OF NEW JERSEY RUSSELL FEINGOLD OF WISCONSIN AND CHARLES ROBB OF VIRGINIA UNTIL THE PAST COUPLE OF DAYS THE WHITE HOUSE DISMISSED THE TALK OF A SPECIAL COUNSEL AS PARTISAN POSTURING LAST NIGHT HOWEVER OFFICIALS SAID THE APPOINTMENT OF A SPECIAL COUNSEL WAS UNDER CONSIDERATION WE CONTINUE TO BELIEVE THE STANDARD FOR AN INDEPENDENT PROSECUTOR HASN'T BEEN MET SAID WHITE HOUSE ADVISER GEORGE STEPHANOPOULOUS NO DECISION HAS BEEN MADE SEPARATELY EIGHT SENIOR REPUBLICAN LEGISLATORS URGED MS RENO TO SEEK STATUTEOFLIMITATIONS WAIVERS FROM THE CLINTONS IN WHITEWATERRELATED MATTERS A JUSTICE DEPARTMENT SPOKESMAN SAID HOWEVER THAT ANY MATTER CONCERNING ITS PROBE OF THE CLINTONS' INVESTMENT IN WHITEWATER AND THEIR RELATIONSHIP WITH MADISON GUARANTY HAS A 10YEAR LIMITATION WHICH WON'T EXPIRE UNTIL 1999 THERE IS SIMPLY NO REASON TO BELIEVE THAT THERE IS ANY MATTER THAT WILL SHORTLY BE BEYOND THE REACH OF FEDERAL PROSECUTORS SAID CARL STERN MS RENO'S CHIEF SPOKESMAN 9401120174 940112 WHO'S NEWS CHEMICAL BANKING'S DARLA MOORE NOTED FOR WORK IN DIP FINANCING RESIGNS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE QUEEN OF DIP FINANCING IS STEPPING DOWN DARLA D MOORE THE CHEMICAL BANKING CORP MANAGING DIRECTOR WHO TURNED THE ARCANE WORLD OF DEBTORINPOSSESSION LENDING INTO A BOOMING BUSINESS RESIGNED YESTERDAY AFTER A 13YEAR BANKING CAREER I'M A FIRM BELIEVER IN PEOPLE NEEDING TO REPOT THEMSELVES PERIODICALLY SAYS MS MOORE 39 YEARS OLD WHO IS UNSURE WHAT HER NEXT CAREER MOVE WILL BE I'M NOT RESIGNING TO PURSUE PERSONAL INTERESTS' OR WHATEVER THEY SAY THE SHARPTONGUED MS MOORE HELPED DEVELOP THE MARKET FOR DIP FINANCING WHICH ARE LOANS USED BY COMPANIES THAT ENTER INTO BANKRUPTCY PROTECTION WITH MS MOORE'S HELP CHEMICAL WON THE LION'S SHARE OF THE BUSINESS WHEN BANKRUPTCIES WERE SOARING A FEW YEARS AGO ODDLY ENOUGH LENDING TO COMPANIES IN BANKRUPTCY IS ONE OF THE MOST ATTRACTIVE TYPES OF FINANCING FOR BANKS BECAUSE THE LOANS CARRY FAT FEES HIGH INTEREST RATES AND ARE THE FIRST TO BE PAID OFF WHEN THE BORROWER EMERGES FROM BANKRUPTCY THE MARKET BECAME A HUGELY PROFITABLE NICHE BUSINESS IN MANY CASES THE LOANS ARE NOT EVEN FULLY DRAWN DOWN BUT USED AS AN INSURANCE POLICY FOR VENDORS AND SUPPLIERS THE BANK NEVER LOST A PENNY NOT ONE RED CENT BOASTS ARTHUR NEWMAN A PARTNER AT THE BLACKSTONE GROUP AND MS MOORE'S FORMER BOSS AT CHEMICAL I THINK THAT DARLA DID AN OUTSTANDING JOB AS THE DIP QUEEN OF AMERICA WHILE SOME BANKS LOANED MONEY TO COMPANIES UNDER BANKRUPTCY PROTECTION AS PART OF THEIR EXISTING RELATIONSHIPS CHEMICAL WAS AMONG THE FIRST TO SET UP A UNIT DEVOTED SOLELY TO COMPANIES THAT ENTER INTO BANKRUPTCY MS MOORE'S FIRST BIG TRANSACTION WAS TEXACO INC'S BANKRUPTCY IN 1987 WHEN THE COMPANY NEEDED A 750 MILLION LOAN SHE BECAME VERY CLOSE WITH THE COMMUNITY OF BANKRUPTCY LAWYERS AND ADVISERS WHO OFTEN RECOMMENDED THAT CLIENTS CHOOSE CHEMICAL WHEN A COMPANY IS HEADING INTO BANKRUPTCY THE FIRST CALL YOU MAKE IS TO DARLA SAID ROBERT MILLER A BANKRUPTCY ATTORNEY SHE BECAME THE STANDARD IN THE INDUSTRY HER CLIENTS READ LIKE THE WHO'S WHO OF BANKRUPTCY INCLUDING ALLEGHENY INTERNATIONAL REVCO DS INC PUBLIC SERVICE OF NEW HAMPSHIRE ALLIED STORES CORP FEDERATED DEPARTMENT STORES AMONG OTHERS IN 1990 THE BANK MADE 16 BILLION IN DIP LOANS HER GROUP WAS SAID TO EARN CLOSE TO 30 MILLION THAT YEAR SHE WAS AT THE FOREFRONT OF SELLING A NEW PRODUCT FOR A COMMERCIAL BANK THAT EXPLODED SAID MR NEWMAN SHE DEVELOPED A REPUTATION OF TURNING AROUND ON A DIME AND BEING ABLE TO FOLLOW THROUGH WITH ACTUAL COMMITMENTS OF COURSE SHE HAD PLENTY OF HELP INCLUDING THE COMMITMENT BY SENIOR MANAGEMENT MS MOORE ALSO ATTRIBUTES HER SUCCESS TO THE BANK'S ABILITY TO COMMIT FUNDS AND SYNDICATE THEM TO OTHER BANKS WITHOUT CHEMICAL'S SYNDICATION DEPARTMENT MS MOORE WOULDN'T HAVE BEEN ABLE TO WRITE SUCH BIG CHECKS IN APRIL 1991 MS MOORE STUNNED CHEMICAL BY RESIGNING TO WORK FOR MANUFACTURERS HANOVER CORP FOR WHAT PEOPLE CLOSE TO THE BANK SAID WAS OVER 1 MILLION THREE MONTHS LATER THE TWO BANKS ANNOUNCED A MERGER AND SHE BECAME HEAD OF THE COMBINED UNIT'S GROUP BUT AMID A DECLINE IN BANKRUPTCIES LAST YEAR MS MOORE GAVE UP THE DIP BUSINESS AND BEGAN BUILDING A RETAILING INDUSTRY SPECIALTY GROUP HER LAST BIG DIP LOAN WAS A 600 MILLION FINANCING FOR RH MACY & CO PEOPLE WHO KNOW HER SAY SHE WAS PROBABLY GETTING BORED WITH THE HUMDRUM NATURE OF HER NEW POSITION MS MOORE SAYS SHE'S UNSURE WHAT SHE WILL DO AFTER A COUPLE OF MONTHS BUT I NEED TO DO SOMETHING OF AN ENTREPRENEURIAL NATURE THAT COULD INCLUDE THE PURCHASE OF A COMPANY TO BUILD OR DOING ADVISORY WORK SHE SAID MS MOORE AND HER HUSBAND ARE SOMETHING OF A POWER COUPLE IN NEW YORK CIRCLES SHE IS MARRIED TO RICHARD RAINWATER A SUCCESSFUL TEXAS INVESTOR FORMERLY ASSOCIATED WITH THE BASS BROTHERS 9401120173 940112 INTERNATIONAL ZAPATA HEIRS RESENT REBELS BRANDISHING THEIR FAMILY NAME GENERAL'S CHILDREN REPUDIATE VIOLENCE OF INSURRECTIONISTS IN SOUTHERN MEXICAN STATE BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL CUAUTLA MEXICO THE PEASANTS OF CHIAPAS HAVE LAID CLAIM TO ONE OF THE MOST FAMOUS NAMES IN MEXICAN HISTORY EMILIANO ZAPATA TO RALLY SUPPORT FOR THEIR UPRISING IN THAT SOUTHERN STATE BUT THAT DOESN'T SIT WELL HERE IN CUAUTLA A TOWN JUST OVER THE MOUNTAINS FROM MEXICO CITY WHERE THE REVOLUTIONARY GENERAL SPENT MUCH OF HIS LIFE AND WHERE PEOPLE THINK THEY KNOW A THING OR TWO ABOUT THE IDEALS KNOWN AS ZAPATISMO MATEO ZAPATA ONE OF THE GENERAL'S THREE SURVIVING CHILDREN SITS IN AN UNLIT OFFICE SMOKING A CIGARETTE BARELY VISIBLE IN THE SHADOWS MR ZAPATA NOW 77 YEARS OLD WAS JUST ONE AND A HALF WHEN HIS FATHER WAS ASSASSINATED HE REMEMBERS WELL THE STRUGGLES HIS FAMILY MEMBERS FACED AS THEY TRIED TO PRESERVE THEIR FATHER'S LEGACY OF RETURNING SEIZED LAND TO THE PEASANTS THE ZAPATA FAMILY GREW UP POOR BECAUSE ONE OF ZAPATA'S RIVALS STOLE ALL OF THEIR BELONGINGS THEY EVEN HAD TO GIVE UP THE FAMILY NAME FOR SEVERAL YEARS TAKING A RELATIVE'S NAME CABALLERO FOR FEAR THAT SOME REVOLUTIONARY GENERAL WOULD TRACK THEM DOWN AND KILL THE CHILDREN TOO MR ZAPATA SAYS HE FEELS THAT HE AND SOME ASSOCIATES NOT THE CHIAPAS REBELS REPRESENT THE CONTINUATION OF HIS FATHER'S WORK MR ZAPATA ADMINISTERS PENSIONS PAID TO VETERANS OF THE REVOLUTION OF WHOM THERE ARE STILL A HANDFUL EVEN THOUGH THE REVOLUTION ENDED MORE THAN 75 YEARS AGO HE HAS ALSO PUT TOGETHER SOMETHING CALLED THE PLAN DE AYALA WHICH HOPES TO RESTORE LAND TO PEASANTS HE OPERATES OUT OF A SMALL ADOBE BUILDING THAT SAYS ZAPATISMO INSTITUTE ON THE SIDE OR WOULD IF THE CRACKING OF THE PAINT HADN'T MADE THE FULL NAME IMPOSSIBLE TO MAKE OUT BUT HE REFUSES TO TAKE MONEY FROM THE GOVERNMENT WHICH HE CONSIDERS TO BE UNDEMOCRATIC REFERRING TO ONE OF HIS FATHER'S SLOGANS LAND WATER JUSTICE AND LAW MR ZAPATA SAYS MANY OF US HAVE LAND NOW AND MANY OF US HAVE WATER BUT WHERE IS THE JUSTICE AND WHERE IS THE LAW DESPITE HIS DISTASTE FOR THE GOVERNMENT MR ZAPATA SAYS THAT THE SORT OF VIOLENCE GOING ON IN CHIAPAS BELONGS TO ANOTHER ERA AND THAT ZAPATISMO HAS TURNED AWAY FROM BLOODSHED I THINK THIS MOVEMENT IN CHIAPAS WRONGLY TOOK THE NAME OF THE ZAPATISTAS HE SAYS BECAUSE FOR ME ZAPATISMO IS PROTECTING THE PEOPLE NOT ONLY GIVING LAND BACK TO PEOPLE BUT CARING FOR PEOPLE A FEW BLOCKS AWAY HIS 79YEAROLD SISTER ANITA AGREES THE MOVEMENT IN CHIAPAS HAS NOTHING TO DO WITH ZAPATISMO SAYS ANITA WHO LOOKS EXACTLY LIKE HER FIERCE FATHER EXCEPT FOR THE ADDITION OF CONSIDERABLE BLUSH AND THE ABSENCE OF HIS BUSHY MUSTACHE THEY TOOK THE NAME JUST TO CREATE AN IMPACT WITH THE INDIGENOUS PEOPLE BUT I DON'T AGREE WITH THE VIOLENCE AND ARMS IT'S BETTER TO TALK WHILE MATEO STRUGGLES WITH THE LAND ISSUE THOUGH ANITA WHO WAS ONCE A POLITICAL LEADER IN THE AREA NOW RUNS A SMALL CAFE THE WALLS ARE DECORATED WITH PICTURES OF HER FATHER THE TWO DISAGREE ON THE FUTURE OF ZAPATISMO HE SAYS THAT THE MOVEMENT WILL CONTINUE AND THAT HIS SISTER HAS SOLD OUT SHE SUPPORTS THE CURRENT GOVERNMENT AND SAYS SHE THINKS ZAPATISMO WILL FADE AS ITS ADHERENTS CONTINUE TO DIE OFF BOTH MATEO AND ANITA FIND IT ODD THAT MORE GROUPS HAVEN'T TRIED TO USE THE ZAPATA NAME OVER THE YEARS THEY SAY THE ONLY ORGANIZED GROUP THEY CAN REMEMBER USING THE NAME WAS A BAND 20 YEARS AGO CALLED THE REVOLUTION OF EMILIANO ZAPATA IT SANG SYRUPY ROMANTIC BALLADS 9401120172 940112 REVIEW & OUTLOOK EDITORIAL NATO AND CREDIBILITY PRESIDENT BILL CLINTON GAVE HIS FELLOW NATO SUMMITEERS GOOD ADVICE MONDAY NIGHT WHEN HE WARNED THEM NOT TO THREATEN THE SERBS UNLESS THEY WERE WILLING TO BACK UP THE THREATS WITH ACTION SPEAKING AS A MAN WHO KNOWS A FEW THINGS ABOUT CREDIBILITY HE SAID THAT FAILURE TO ACT ON PROMISES OF ACTION WILL HAVE GREAT RAMIFICATIONS IN THE FUTURE IN OTHER CONTEXTS ONLY EVENTS WILL SHOW WHETHER THE OTHER 15 NATIONAL LEADERS TOOK THE WARNING TO HEART OR FOR THAT MATTER WHETHER THE PRESIDENT WAS COUNSELING ACTION OR INACTION THERE WAS A CERTAIN AMBIGUITY SUGGESTING THAT MR CLINTON MIGHT NOT HAVE BEEN KEEN ON ISSUING ANY THREATS AT ALL THE UPSHOT HOWEVER WAS A WARNING IN YESTERDAY'S FINAL COMMUNIQUE OF AIR STRIKES TO PREVENT THE STRANGULATION OF SARAJEVO THE SAFE AREAS AND OTHER THREATENED AREAS OF BOSNIAHERZEGOVINA THE LEADERS ORDERED UP PLANS TO END SERBIAN INTERFERENCE WITH THE ROTATION OF UN TROOPS IN THE BESIEGED ENCLAVE OF SREBRENICA AND TO SECURE THE OPENING OF THE TUZLA AIRPORT TO RENEWED MERCY FLIGHTS BUT AFTER SOUNDING TOUGH THE SUMMITEERS REMINDED EVERYONE THAT ANY FINAL DECISION WILL BE IN THE HANDS OF WORLD COMMANDER IN CHIEF BOUTROS BOUTROSGHALI AT THE UN RUSSIA HAS BEEN PROTECTIVE OF THE SERBS ON THE SECURITY COUNCIL SO BILL CLINTON WILL HAVE TO TALK TO BORIS YELTSIN ABOUT THAT THIS WEEK CANADA'S NEW LIBERAL PREMIER JEAN CHRETIEN SIGNED THE COMMUNIQUE WITHOUT ENTHUSIASM IN PART BECAUSE BOMBING MIGHT ENDANGER CANADIAN PEACEKEEPING TROOPS THE SERBS NO DOUBT WILL MAKE THEIR OWN JUDGMENTS ABOUT THIS LATEST OF MANY THREATS BUT THEY WILL BE MORE INFLUENCED IN THEIR ACTIONS BY EVENTS ON THE GROUND INCLUDING THE SMALL SIGNS OF IMPROVING STRENGTH IN THE BOSNIAN MUSLIM FORCES WHATEVER HAPPENS NEXT WE HAVE SOME SERIOUS DOUBTS ABOUT NATO'S LONGTERM SHAPE THE ALLIANCE MAY BE HEADING FOR GREATER FRAGMENTATION AS THE JOURNAL'S PETER GUMBEL REPORTED YESTERDAY THE US HAS YIELDED TO FRANCE'S AMBITIONS FOR MORE INDEPENDENCE OF ACTION FOR EUROPE WITHIN THE ALLIANCE FRANCE WANTS TO FULFILL THE MAASTRICHT TREATY'S GOAL OF GREATER POLITICAL UNITY BY HAVING THE WESTERN EUROPEAN UNION WEU TAKE GREATER RESPONSIBILITY FOR EUROPE'S DEFENSE AND SEEMS TO HAVE WON ITS POINT IN YESTERDAY'S COMMUNIQUE FRANCE'S RATHER CONTRADICTORY GOAL IS TO WIN MORE POWER FOR ITSELF WHILE KEEPING THE AMERICANS ON HAND TO DO ANY SERIOUS FIGHTING MAYBE IT WAS HISTORICALLY INEVITABLE THAT THE US 50 YEARS AFTER DDAY AND THREE YEARS AFTER THE END OF THE COLD WAR WOULD BE TURNING OVER TO EUROPE MORE RESPONSIBILITY FOR ITS OWN DEFENSE YESTERDAY'S COMMUNIQUE CALLED FOR GREATER FLEXIBILITY OF COMMAND BETWEEN NATO AND THE WEU PROGRESS BUT SOME MIGHT WONDER AT THE WISDOM OF DIVIDED COMMAND WHETHER MR CLINTON HAS GIVEN MUCH SERIOUS THOUGHT TO THE FUTURE OF THE WESTERN ALLIANCE IS NOT ENTIRELY CLEAR HE AND HIS FOREIGN POLICY TEAM WANTED A VICTORY TO DISPLAY AT THE SUMMIT HENCE THE HEAVY PRESSURE TO GET UKRAINE TO RELINQUISH ITS NUCLEAR WEAPONS BUT THE PRESIDENT'S ANNOUNCEMENT MONDAY OF SUCH AN AGREEMENT MAY HAVE BEEN PREMATURE THE UKRAINIAN PARLIAMENT SEEMS UNWILLING TO AGREE TO WHATEVER PRESIDENT LEONID KRAVCHUK HAS PROMISED A REALITY MR CLINTON HAD TO ACKNOWLEDGE AT HIS PRESS CONFERENCE YESTERDAY THERE WILL BE MORE PRESSURE ON UKRAINE FROM BOTH THE US AND RUSSIA LATER THIS WEEK TO BE SURE THERE IS NOT MUCH ORDER IN THE WORLD WHERE MR CLINTON AND HIS NATO ALLIES ARE CONDUCTING FOREIGN POLICIES IN THE POST COLD WAR WORLD THERE STILL REMAINS MUCH INTELLECTUAL CONFUSION OVER THE MORE AMBIGUOUS CHALLENGES OF A BOSNIA UNTIL THESE PROBLEMS ARE SORTED OUT THERE UNDOUBTEDLY WILL BE MANY SUBTLETIES IN THEIR POLITICAL MOVES WE HOPE HOWEVER THAT THE NATO LEADERS DO NOT BECOME COMFORTABLE WITH SUCH SUBTLETY THE WORLD'S MOST TROUBLED CORNERS ARE CLEARLY CRYING OUT FOR A CLEARER VISION THAN THEY HAVE SO FAR BEEN OFFERED 9401120171 940112 WHO'S NEWS SOFTWARE TOOLWORKS INC SOFTWARE TOOLWORKS INC NOVATO CALIF HOWARD MORGAN 48 YEARS OLD WAS ELECTED A DIRECTOR OF THIS SOFTWARE CONCERN INCREASING ITS BOARD'S SIZE TO SIX MEMBERS MR MORGAN IS PRESIDENT OF ARCA GROUP INC A VILLANOVA PA CONSULTING AND INVESTMENTMANAGEMENT CONCERN 9401120170 940112 INTERNATIONAL MERGERS' GROWING ACCEPTANCE IN JAPAN IS FORTIFIED BY FAIR TRADE PANEL'S MOVE BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ECONOMIC DOWNTURN IS LEADING AN INCREASING NUMBER OF COMPANIES TO CONSIDER ACTION CONSIDERED RADICAL BY THE NATION'S BUSINESS ESTABLISHMENT MERGER IN RECENT MONTHS SEVERAL HIGHPROFILE CORPORATE COMBINATIONS HAVE GRABBED HEADLINES IN JAPAN AS COMPANIES ALLY THEMSELVES TO INCREASE THEIR SIZE AND MARKETING POWER TO BOOST SAGGING PROFITS MOREOVER JAPAN'S BUREAUCRATS NOW ARE WORKING BOTH PUBLICLY AND PRIVATELY TO MAKE MERGERS EASIER THEY SEE MERGERS AS PART OF A BROAD RESTRUCTURING TO MAKE JAPAN'S CORPORATE SECTOR MORE COMPETITIVE AT HOME AND ABROAD IN THE LATEST SIGN OF TACIT GOVERNMENT BACKING FOR SUCH CORPORATE RESTRUCTURING JAPAN'S FAIR TRADE COMMISSION ON TUESDAY RELEASED SPECIFIC MEASURES EFFECTIVE FEB 1 TO CUT RED TAPE AND ADMINISTRATIVE HURDLES TO CORPORATE COMBINATIONS IN THE PAST EVEN MERGERS BY SMALL COMPANIES IN JAPAN REQUIRED ELABORATE AND COSTLY PAPERWORK AND PROCEDURES THE FTC IS ELIMINATING MOST OF THE ADMINISTRATIVE HEADACHE FOR MERGERS VALUED AT AS MUCH AS 10 BILLION YEN 89 MILLION UP FROM AN EARLIER THRESHOLD OF FIVE BILLION YEN THE MOVE IS AIMED AT HELPING THE AGENCY JAPAN'S ANTITRUST WATCHDOG TO HANDLE THE RELATIVELY HIGH NUMBER OF MERGER APPLICATIONS THUS FAR THIS DECADE ANNUAL MERGER FILINGS WITH JAPAN'S FTC HAVE DOUBLED IN THE PAST DECADE TO MORE THAN 2000 IN 1992 THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE AND WITHIN THE PAST COUPLE OF MONTHS TWO GIANT MERGERS HAVE BEEN ANNOUNCED MITSUBISHI KAISEI CORP IS MERGING WITH MITSUBISHI PETROCHEMICAL CO IN A TRANSACTION THAT WILL CREATE JAPAN'S BIGGEST CHEMICALS COMPANY WITH A MARKET CAPITALIZATION OF 140 BILLION YEN AND ONODA CEMENT CO IS COMBINING WITH CHICHIBU CEMENT CO TO BECOME JAPAN'S LARGEST CEMENT MAKER WITH A MARKET CAPITALIZATION OF 347 BILLION YEN OFFICIALS AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WELCOME SUCH COMBINATIONS WHICH THEY BELIEVE WILL CREATE STRONGER NATIONAL CHAMPIONS IN KEY INDUSTRIES AMID THE BROADER NEED TO RESTRUCTURE OVER THE COMING YEARS MERGERS ARE GOING TO BE ONE LARGE OPTION A MINISTRY OFFICIAL SAID HOWEVER REGULATORS AND BUSINESSMEN ALIKE WARN THAT JAPAN HAS A LONG WAY TO GO BEFORE MERGERS PROVIDE THE QUICK BOOST TO THE BOTTOM LINE THAT THEY OFTEN PROVIDE IN OTHER COUNTRIES THAT'S BECAUSE IN JAPAN IT'S MORE TIMECONSUMING AND OFTEN MORE DIFFICULT TO CUT JOBS AND GAIN OTHER EFFICIENCIES FROM MERGERS THAN IN OTHER COUNTRIES MOST JAPANESE MERGERS STILL ARE FRIENDLY AFFAIRS OFTEN WITHIN A SINGLE KEIRETSU GROUP OF ASSOCIATED COMPANIES OUTSIDE OF THAT THE WHOLE CONCEPT OF TRANSFERRING OWNERSHIP OF A CORPORATION HAS OFTEN BEEN VIEWED WITH DISDAIN IN THE JAPANESE LANGUAGE THE TWO WORDS MOST OFTEN USED TO DESCRIBE CORPORATE ACQUISITIONS CAN ALSO MEAN HIGHJACK AND BRIBE COMBINING TWO JAPANESE COMPANIES IS LIKE TAKING TWO FAMILIES THAT HAVE NOTHING TO DO WITH EACH OTHER OR WERE FORMERLY COMPETITORS AND ASKING THEM TO LIVE IN PEACE IN THE SAME HOUSE SAYS KEN MOROI CHICHIBU CEMENT'S CHAIRMAN MANAGING SUCH A COMPANY POSES CHALLENGES IN THE BANKING BUSINESS WHICH HAS SEEN SEVERAL HUGE MERGERS IN RECENT YEARS SOME OF THE COMBINED BANKS HAVE KEPT THREE PERSONNEL DEPARTMENTS ONE FROM EACH ORIGINAL BANK AND ONE FOR THE COMBINED GROUP THE MERGING CEMENT COMPANIES WILL TRY TO REDUCE STAFF USING THE TRADITIONAL JAPANESE APPROACH HIRING CUTBACKS AND VOLUNTARY RETIREMENTS THROUGH SUCH MEASURES THE COMBINED COMPANY HOPES TO TRIM 1000 OF ITS CURRENT 4000 WORKERS WITHIN THREE YEARS MR MOROI SAID HIS NEW COMPANY WILL PROMOTE EMPLOYEES ONLY ON THE BASIS OF THEIR CONTRIBUTION TO THE COMPANY RATHER THAN ON SENIORITY MARKING A MAJOR BREAK WITH TRADITION AND MR MOROI BELIEVES OTHER MANAGERS ARE GOING TO HAVE TO FACE SIMILARLY TOUGH DECISIONS IN THE MONTHS AND YEARS TO COME MERGERS HE SAID ARE GOING TO BE AN INCREASINGLY LARGE PART OF THE JAPANESE ECONOMIC LANDSCAPE UNLESS THEY FIND MERGER PARTNERS HE SAID MANY COMPANIES MAY HAVE A TOUGH TIME SURVIVING 9401120169 940112 TEXAS JOURNAL HEARD IN TEXAS NEW INSURANCE PLAYER HOPES TO GET THE RIGHT BREAKS ON INTEREST RATES BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS NOW MAY NOT BE THE BEST OF TIMES FOR AN INSURANCE COMPANY TO JOIN THE STOCK MARKET INSURANCE STOCKS HAVE NOSED DOWN AS MUCH AS 30 IN THE PAST QUARTER LARGELY BECAUSE INTEREST RATES HAVE INCHED UP AND WITH THE CLINTON ADMINISTRATION PREDICTING A FURTHER MODERATE UPTICK IN SHORTTERM RATES IT WOULD SEEM INTEREST RATESENSITIVE STOCKS SUCH AS THOSE FOR INSURANCE COMPANIES FACE CONTINUED LETHARGY YET INTO THIS WEAKNESS COMES A NEW PLAYER WESTERN NATIONAL THE LARGEST SUBSIDIARY OF HOLDING COMPANY CONSECO AND THE HOUSTON PARENT OF AMARILLO'S WESTERN NATIONAL LIFE INSURANCE CONSECO OF CARMEL IND PLANS TO DIVEST WESTERN NATIONAL IN EARLY FEBRUARY OFFERING 304 MILLION SHARES WESTERN NATIONAL WILL OFFER AN ADDITIONAL TWO MILLION SHARES AT AN EXPECTED SHARE PRICE OF 15 TO 17 THE DEAL COULD BE WORTH AS MUCH AS 550 MILLION THE LARGEST INITIAL PUBLIC OFFERING IN TEXAS SINCE JANUARY 1989 BUT HOW WELL WILL AN INSURANCE STOCK FARE IN A MARKET WHERE THE CONSENSUS HOLDS INTEREST RATES ARE HEADED NORTH ALTHOUGH MOST ANALYSTS FOLLOWING THIS COMPANY CAN'T TALK BECAUSE THEIR FIRMS ARE HELPING TO UNDERWRITE THE OFFERING THOSE WHO CAN COMMENT SAY WESTERN NATIONAL SHOULD FARE QUITE WELL AS LONG AS INTEREST RATES DON'T RISE TOO QUICKLY A STEADY RISE HOWEVER COULD PROVE BENEFICIAL WESTERN NATIONAL IS A MARKETER OF ANNUITY PRODUCTS THE POPULAR TAXDEFERRED INVESTMENTS USED MAINLY FOR RETIREMENT PLANNING AS ONE OF THE FEW REMAINING TAX SHELTERS ANNUITIES HAVE GAINED A BIG FOLLOWING PREMIUMS NATIONWIDE FOR 1993 ARE PROJECTED TO HAVE TOPPED 612 BILLION UP 81 FROM 338 BILLION SOLD IN 1987 ACCORDING TO KENNETH KEHRER ASSOCIATES THE PRINCETON NJ PUBLISHER OF THE NEWSLETTER OF THE BANKINSURANCE INDUSTRY BUT WESTERN NATIONAL HAS LIMITED ITSELF TO FIXED ANNUITY PRODUCTS WHILE IN RECENT YEARS IT HAS BEEN THE VARIABLE ANNUITY SECTOR OF THE MARKET THAT HAS TAKEN OFF AS INVESTORS WENT IN SEARCH OF HIGHER RETURNS AMID LOW INTEREST RATES AS A RESULT ANNUAL ANNUITY PREMIUMS FUNNELING INTO THE COMPANY FELL TO ABOUT 600 MILLION IN 1993 FROM A HISTORIC HIGH OF 127 BILLION IN 1991 NOW THE COMPANY HOPES TO GET BACK ON TRACK PLANNING TO OFFER VARIABLE ANNUITY PRODUCTS THIS YEAR AND IT'S IN A GOOD POSITION TO REGAIN LOST INVESTORS BECAUSE IT SELLS THROUGH A HOT DISTRIBUTOR BANKS BANKSOLD ANNUITIES ARE THE FASTESTGROWING SEGMENT OF THE MARKET MR KEHRER PROJECTS IT AT 40 BILLION BY THE YEAR 2000 UP FROM 128 BILLION CURRENTLY ROUGHLY THREEQUARTERS OF WESTERN NATIONAL'S ANNUAL PREMIUMS COME FROM THIS NICHE THE COMPANY ALSO MARKETS ITS PRODUCTS TO EMPLOYEES OF NONPROFIT AGENCIES SUCH AS SCHOOL SYSTEMS AND HOSPITALS INVESTING IN 403B PLANS SIMILAR TO 401K RETIREMENT ACCOUNTS ANALYSTS ARE ENTHUSIASTIC ABOUT WESTERN NATIONAL'S PROSPECTS THE ANNUITY BUSINESS IS EXPECTED TO GROW FURTHER AGING BABY BOOMERS NOW HITTING THEIR PRIME SAVINGS YEARS ARE EXPECTED TO PICK UP BILLIONS OF DOLLARS WORTH OF ANNUITY PRODUCTS AS THEY PREPARE FOR RETIREMENT AND MOST ANALYSTS DON'T SEE A RAPID ESCALATION IN INTEREST RATES IF INTEREST RATES WERE TO RISE SHARPLY THE COMPANY WOULD BE SEVERELY BURDENED AS INVESTORS DUMP THEIR CURRENT LOWRATE ANNUITIES IN SEARCH OF HIGHER RETURNS SUCH AN EXODUS WOULD FORCE WESTERN NATIONAL TO SELL LOWRATE BONDS IN WHICH IT HAS INVESTED INTO A MARKETPLACE WHERE THOSE BONDS ARE WORTH LESS BUT IF INTEREST RATES ASCEND GRADUALLY AS IS EXPECTED WESTERN NATIONAL WILL BENEFIT BY REPLACING LOWRATE SHORTTERM BONDS THAT COME DUE WITH HIGHERRATE BONDS INVESTORS' INTEREST IN ANNUITY PRODUCTS IS REFLECTED IN THE GROWTH OF WESTERN NATIONAL'S ASSETS IN RECENT YEARS TOTAL ASSETS AT 86 BILLION HAVE MORE THAN DOUBLED SINCE 1988 AND ALTHOUGH PREMIUMS ARE DOWN NET INCOME IS UP AS A RESULT OF THE OVERALL GROWTH IN WESTERN NATIONAL'S INVESTED ASSETS WESTERN NATIONAL PROFITS BY MAINTAINING A SPREAD BETWEEN WHAT INVESTMENTS EARN AND THE RATE OF RETURN IT GUARANTEES TO ANNUITY HOLDERS NET INCOME FOR 1993 IS EXPECTED AT 125 MILLION OR ABOUT 2 A SHARE COMPARED WITH 1022 MILLION FOR 1992 THE OFFERING IS FOR 324 MILLION SHARES BUT CONSECO WILL RETAIN AN ADDITIONAL 296 MILLION MEANING 62 MILLION SHARES WILL ACTUALLY EXIST BASED ON THE EXPECTED OFFERING PRICE WESTERN NATIONAL'S STOCK WILL COME PUBLIC AT BETWEEN 75 AND 85 TIMES EARNINGS A DISCOUNT TO WHAT MOST ANALYSTS FEEL THE COMPANY IS WORTH IN LIGHT OF THE GROWTH THAT'S AHEAD OF THEM THIS IS A COMPANY THAT ULTIMATELY SHOULD TRADE FOR 15 TIMES EARNINGS SAYS RAYMOND L DIRKS DIRECTOR OF RESEARCH AT RAS SECURITIES NEW YORK ONE ADDITIONAL RISK IS THAT WESTERN NATIONAL IS DEPENDENT ON ONE PRODUCT NEARLY 98 OF THE PREMIUMS COLLECTED IN THE FIRST NINE MONTHS OF 1993 WAS TIED TO ANNUITIES THE REMAINDER CAME FROM UNDERWRITING ABOUT 25000 LIFE INSURANCE POLICIES WESTERN NATIONAL IS SEEKING TO BROADEN ITS OFFERINGS ONCE IT IS SPUN OFF ASIDE FROM INTRODUCING VARIABLE ANNUITIES THE COMPANY WANTS TO INCREASE ITS LIFE INSURANCE UNDERWRITING SEEMS INVESTORS ARE USING GOOD NEWS OR NO NEWS TO TAKE SOME PROFITS THESE DAYS MEN'S WEARHOUSE THE HOUSTON CLOTHIER AND ONE OF 1993'S TOP PERFORMERS DROPPED NEARLY 10 FOR THE WEEK ON NEWS THAT TOTAL SALES FOR DECEMBER INCREASED MORE THAN 42 WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE NEARLY 18 LIKEWISE PANCHO'S MEXICAN BUFFETS THE FORT WORTH EATERY THAT HAS REVAMPED ITS STORES AND BEEFED UP ITS MENU SHED 92 AFTER REPORTING DECEMBER SALES IN RESTAURANTS OPEN A YEAR OR MORE LEAPED 17 ONE OF THAT COMPANY'S BEST SHOWINGS DALLAS'S FIRST USA WHICH IN 1993 CLIMBED FROM 20 TO THE MID60 BEFORE SPLITTING 2FOR1 IN NOVEMBER DROPPED NEARLY 11 LAST WEEK THERE WAS NO APPARENT NEWS TO SPARK THE FALL COMPUCOM SYSTEMS DALLAS GAINED 125 OR 31 AFTER ANNOUNCING THAT UNAUDITED REVENUE FOR 1993 TOPPED 1 BILLION A RECORD AND A 40 INCREASE FROM 1992 THE COMPUTER MARKETER NOTED THAT SINCE 1989 IT HAS POSTED AN ANNUAL GROWTH RATE OF 39 THOMAS GROUP AN IRVING PROVIDER OF MANAGEMENT SERVICES DROPPED 75 CENTS AND TRADED AT SIX TIMES ITS AVERAGE DAILY VOLUME ON NEWS THAT IT EXPECTS AN EARLY TERMINATION OF ITS CONTRACT WITH REVLON CONSUMER PRODUCTS ONE OF THREE CLIENTS THAT CONTRIBUTE MORE THAN 10 OF THE COMPANY'S REVENUE THOMAS GROUP SAID IN A RELATED ACTION IT SUED REVLON FOR COLLECTION OF 3 MILLION DUE FOR INCENTIVES EARNED FROM SERVICES PROVIDED TO REVLON THOMAS GROUP OFFICIALS SAID REVLON IS SEEKING AN EARLY TERMINATION OF THE CONTRACT BECAUSE REVLON DOESN'T WANT TO HONOR THE INCENTIVE PAYMENTS NINE MONTHS ENDED SEPT 30 1993 9401120168 940112 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK LEHMAN BROTHERS INC THE INVESTMENT BANKING UNIT OF THIS TRAVEL AND FINANCIAL SERVICES COMPANY NAMED JOHN L CECIL 39 YEARS OLD CHIEF ADMINISTRATIVE OFFICER PREVIOUSLY A DIRECTOR OF MCKINSEY & CO MR CECIL SUCCEEDS ROBERT SHAPIRO WHO CONTINUES AT THE COMPANY AS CHAIRMAN OF ITS ADMINISTRATIVE COMMITTEE 9401120167 940112 TECHNOLOGY & ENVIRONMENT PATIENT COSTS OFFER ROOM TO MAKE CUTS STUDY INDICATES BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL WHILE PROPONENTS OF HEALTHCARE REFORM CLAMOR FOR CUTS IN RED TAPE AS A WAY TO HELP CONTROL THE NATION'S MEDICAL BILLS LARGER SAVINGS MAY BE AVAILABLE IN THE WAY HOSPITALS MANAGE THEIR PATIENTS ACCORDING TO A NEW STUDY THE REPORT BY HCIA INC A HEALTHCARE INFORMATION CONCERN IN BALTIMORE INDICATES THAT HOSPITALS IN THE US COULD SAVE AS MUCH AS 12 BILLION A YEAR BY FOLLOWING THE PRACTICE PATTERNS OF HEALTHCARE FACILITIES IN MINNEAPOLIS AND ST PAUL MINN ONE OF THE MOST AGGRESSIVELY MANAGED HEALTHCARE MARKETS IN THE COUNTRY THERE HOSPITAL PATIENTS ARE DISCHARGED ABOUT 1 1/2 DAYS SOONER ON AVERAGE THAN IN HOSPITALS ELSEWHERE IN THE US MOREOVER THOSE FACILITIES PRODUCE OUTCOMES IN TERMS OF MORTALITY AND SURGICAL INFECTION RATES THAT ARE EQUAL TO OR BETTER THAN RATES AT HOSPITALS THROUGHOUT THE COUNTRY USING MINNEAPOLIS ST PAUL AS A BENCHMARK AND COMPARING MEDICARE DATA FROM HOSPITALS NATIONWIDE HCIA CALCULATED THAT ALMOST 20 OF PATIENT DAYS IN 1992 WERE CLINICALLY UNWARRANTED IN THE STUDY'S SAMPLE THAT WOULD TRANSLATE TO EXCESS COSTS OF ABOUT 12 BILLION ANNUALLY WE HEAR MUCH ABOUT ADMINISTRATIVE WASTE IN THE HEALTHCARE INDUSTRY SAID ROBERT LEARY VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR HCIA BUT THE REALIZABLE SAVINGS ON THE CLINICAL SIDE ARE FAR GREATER AND MORE ATTAINABLE SQUEEZING WASTE AND INEFFICIENCIES FROM THE US MEDICAL SYSTEM IS A CORNERSTONE OF PRESIDENT CLINTON'S PLAN FOR HEALTHCARE REFORM THE SAVINGS IN TURN WOULD BE USED TO FINANCE EXPANDED BENEFITS SOME OF THE CHANGES ENVISIONED BY THE CLINTON TEAM INCLUDE SWITCHING TO A SINGLE REIMBURSEMENT FORM FOR INSURANCE CLAIMS AND SCALING BACK FEDERAL OVERSIGHT OF CLINICAL LABORATORIES THOSE STEPS AND OTHERS THE WHITE HOUSE ESTIMATES COULD PRODUCE SAVINGS OF AS MUCH AS 50 BILLION A YEAR BUT SOME HEALTHCARE ECONOMISTS QUESTION WHETHER MR CLINTON'S PLAN WILL SIMPLY REPLACE EXISTING RED TAPE WITH NEW RED TAPE UNDER THE ADMINISTRATION'S PROPOSAL MOST PEOPLE WOULD EVENTUALLY BUY HEALTH INSURANCE THROUGH LARGE PURCHASING GROUPS RUN BY THE STATES EXPERTS ESTIMATE THERE COULD BE AS MANY AS 250 OF THESE REGIONAL ALLIANCES EACH WITH ITS OWN COSTLY BUREAUCRACY DEPENDING ON HOW THE STATES SET THEM UP HOSPITALS IN SEVERAL MARKETS NOTABLY IN FLORIDA OREGON AND SOUTHERN CALIFORNIA ALREADY ARE PUSHING TO STREAMLINE THEIR PRACTICE PATTERNS AND OPERATIONS AND THUS REDUCE CHARGES AND EXPENSES SAID SAAD ALLAWI VICE PRESIDENT OF MERCER MANAGEMENT CONSULTING INC IN NEW YORK INDEED IN A SECOND STUDY BY HCIA IN CONJUNCTION WITH MERCER OF THE 100 BESTPERFORMING HOSPITALS IN THE COUNTRY RESEARCHERS FOUND THAT EXPENSES PER ADMISSION AT THE TOP FACILITIES WERE AS MUCH AS 15 LOWER THAN THEIR PEER GROUPS IF ANYTHING MR ALLAWI SAID CALLS FOR HEALTHCARE REFORM AND COSTEFFECTIVE CARE WILL ACCELERATE HOSPITALS' PUSH FOR IMPROVED PERFORMANCE WE'RE GOING TO SEE THESE CHANGES TAKE PLACE MUCH FASTER IN THE NEXT FIVE TO 10 YEARS 9401120166 940112 MERRYGOROUND FAILS IN EFFORT TO WIN CONCESSIONS MAKES BANKRUPTCY FILING BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MERRYGOROUND ENTERPRISES INC THE TROUBLED RETAILER OF YOUTH FASHIONS FILED FOR PROTECTION FROM CREDITORS AFTER FAILING TO WIN CONCESSIONS FROM LENDERS AND ENCOUNTERING DIFFICULTY IN GETTING SHIPMENTS OF SPRING MERCHANDISE FOR ITS STORES THE BANKRUPTCY FILING MADE IN MARYLAND UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE FOLLOWS POOR CHRISTMAS SALES FOR DECEMBER A MONTH IN WHICH THE COMPANY MISSED PAYMENTS TO SUPPLIERS AND REPORTED A FISCAL THIRDQUARTER LOSS THAT PLACED IT IN VIOLATION OF CREDIT PACTS THE JOPPA MD COMPANY WHICH HAS ANNUAL SALES OF ABOUT 750 MILLION SAID IN AN ANNOUNCEMENT YESTERDAY IT FILED FOR BANKRUPTCY PROTECTION AFTER IT WAS UNABLE TO REACH AN AGREEMENT WITH LENDERS TO OBTAIN WAIVERS OF EXISTING COVENANT VIOLATIONS AND TO AMEND OR RESTRUCTURE THE COMPANY'S BORROWING ARRANGEMENTS DESPITE INTENSE NEGOTIATIONS WITH ITS BANK AND INSTITUTIONAL LENDERS THE COMPANY WAS UNABLE TO DEVELOP A FINANCIAL RESTRUCTURING PLAN THAT WAS SATISFACTORY TO ALL PARTIES INVOLVED THE COMPANY SAID AT A TIME WHEN RETAILERS ARE STOCKING THEIR STORES WITH CRUCIAL SPRING MERCHANDISE MERRYGOROUND SAID IT HOPED THE FILING AND PLANNED REORGANIZATION WOULD REGAIN THE FULL CONFIDENCE OF ITS VENDORS AND LEAD TO RECEIVING INVENTORY AT ADEQUATE LEVELS FOR THE SPRING SEASON MERRYGOROUND WHICH SELLS FASHIONS TO YOUNG MEN AND WOMEN IN 1445 STORES IN 44 STATES FILED IN US BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND IN ITS FILING THE RETAILER REPORTED THAT AS OF NOV 27 1993 IT HAD TOTAL ASSETS OF 463 MILLION AND TOTAL LIABILITIES OF 265 MILLION MERRYGOROUND'S BANKRUPTCY FILING IS THE SECOND IN A WEEK FROM A RETAILER THAT GREW QUICKLY IN RECENT YEARS BY FOLLOWING FASHIONABLE TRENDS LAST FRIDAY CONRAN STORES INC THE ONCE TRENDSETTING HOME FURNISHINGS RETAILER FILED UNDER CHAPTER 11 IN NEW YORK THE FILING BROUGHT YET ANOTHER CHANGE IN MANAGEMENT FOR MERRYGOROUND WHICH IN RECENT MONTHS DISMISSED SEVERAL OF ITS MERCHANDISING EXECUTIVES ONE OF THE COMPANY'S FOUNDERS AND ITS CHAIRMAN LENNY WEINGLASS HAS ASSUMED THE TITLE OF CHIEF EXECUTIVE MR WEINGLASS HAD RECENTLY RETURNED TO THE COMPANY'S OPERATIONS TO TAKE OVER ITS MERCHANDISING STRATEGY MICHAEL D SULLIVAN WHO HAD BEEN CHIEF EXECUTIVE WILL RETAIN THE TITLE OF PRESIDENT ISAAC KAUFMAN REMAINS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ANALYSTS AND INDUSTRY EXECUTIVES HOWEVER WERE NOT IMPRESSED BY MR WEINGLASS'S REEMERGENCE MERRYGOROUND SHOULD GO OUT AND FIND A MERCHANT TO LEAD THE COMPANY SAID PETER SCHAEFFER A PARTNER WITH JOHNSON REDBOOK SERVICE A RETAILANALYSIS FIRM THEY NEED SOMEBODY WHO HAS HIS FINGER ON THE PULSE OF FASHION LENNY'S NOT THE GUY ADDED RICHARD POSNER OF CREDIT EXCHANGE INC A CREDITMONITORING AGENCY FOR APPAREL BUSINESSES I'M NOT IMPRESSED BY WEINGLASS'S NEW POSITION HE'S OUT OF TOUCH WITH THE MARKET HE DOESN'T HAVE THAT MAGIC TOUCH AND I DON'T BELIEVE HE WILL COME AND SAVE THIS BUSINESS THE RETAILER HAD BEEN HAMMERED IN RECENT MONTHS BY POOR RESULTS AT STORES OPEN A YEAR OR LONGER IN PART BECAUSE OF A SLOWDOWN IN OVERALL APPAREL SALES BUT ANALYSTS ALSO SAID THAT MERRYGOROUND STORES WHICH ALSO OPERATE UNDER THE NAMES CIGNAL AND CHESS KING FEATURED CLOTHES THAT YOUNG SHOPPERS NO LONGER CONSIDERED HIP UNDER CHAPTER 11 A COMPANY CAN KEEP OPERATING WITHOUT PAYING ITS CREDITORS WHILE IT REORGANIZES THE BANKRUPTCY FILING ACTUALLY PUTS MERRYGOROUND IN ITS BEST POSITION IN MONTHS BECAUSE THE COMPANY HAS NOT BEEN PAYING SUPPLIERS THE MERCHANT IS SITTING ON A MOUND OF CASH WHICH THE COMPANY SAID YESTERDAY TOTALED 90 MILLION TYPICAL FOR A RETAIL BANKRUPTCY MERRYGOROUND SAID IT RECEIVED A COMMITMENT FOR DEBTORINPOSSESSION FINANCING THAT WILL ALLOW IT GUARANTEE THE SHIPMENT OF SPRING GOODS THE COMPANY SAID IT HAS A COMMITMENT FROM CIT GROUP/FACTORING TO PROVIDE DIP FINANCING IN THE FORM OF A 125 MILLION REVOLVING LINE OF CREDIT INCLUDING A SUBFACILITY FOR THE ISSUANCE OF LETTERS OF CREDIT WHICH IS SUBJECT TO BANKRUPTCY COURT APPROVAL THE COMPANY SAID IT BELIEVES DIP FINANCING ALONG WITH ITS AVAILABLE CASH SHOULD ENABLE IT TO MEET ITS FORESEEABLE FINANCING REQUIREMENTS STILL SOME SUPPLIERS WERE HOPING FOR A BETTER OUTCOME I AM SHOCKED THAT THEY FILED SAID CARL JONES PRESIDENT OF CROSS COLOURS INC A LOS ANGELES MAKER OF YOUNG MENS' WEAR THEY WERE TALKING TO US RECENTLY ABOUT A MORATORIUM ON WHAT THEY OWED US HE SAID WE HAVE ORDERS FOR THEM IN HOUSE FOR SPRING BUT WE DIDN'T KNOW WHAT TO DO WITH IT MERRYGOROUND STOCK HAD BEEN FALLING IN THE LAST YEAR FROM A 52WEEK HIGH OF 17625 TO A LOW OF 150 YESTERDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ITS SHARES STOPPED TRADING AT 2625 UNCHANGED PRIOR TO THE ANNOUNCEMENT OF THE BANKRUPTCY FILING 9401120165 940112 TEXAS JOURNAL AND FOR BEST MILLING ABOUT BY A CEO THE WINNER IS BY TARA PARKERPOPE IS SOUTHWEST AIRLINES' CEO HERB KELLEHER GOING HOLLYWOOD THE COLORFUL MR KELLEHER MAKES HIS PRIMETIME DEBUT NEXT MONTH ON THE NBC SITCOM WINGS A SHOW THAT CENTERS AROUND THE FOUNDERS OF A STARTUP COMMUTER AIRLINE MR KELLEHER WAS SCHEDULED TO TAPE THE SHOW LAST NIGHT MR KELLEHER MET THE WINGS CAST LAST FALL DURING A CHARITY BOWLING TOURNAMENT TO RAISE MONEY FOR ANGEL FLIGHT WHICH PROVIDES FREE AIR TRANSPORTATION FOR PATIENTS IN NEED OF MEDICAL CARE ALTHOUGH SOUTHWEST AIRLINES' TEAM LOST THE TOURNAMENT I THINK THEY CHEATED SAYS MR KELLEHER ITS BOSS LANDED A WALKON PART ON THE PROGRAM BUT DON'T THINK THIS IS A CASE OF ART IMITATING LIFE TRUE THE PROGRAM IS ABOUT A COMMUTER AIRLINE AND YES IT'S SCHEDULED TO APPEAR ON VALENTINE'S DAY THE HEART IS A FAVORED SYMBOL OF SOUTHWEST WHICH IS BASED OUT OF LOVE FIELD IN DALLAS BUT IF YOU DOUBT THAT THERE'S A MAJOR DIFFERENCE BETWEEN WINGS AND REAL LIFE CONSIDER THIS THE ALWAYSTALKATIVE MR KELLEHER ISN'T SCHEDULED FOR A SPEAKING PART WINGS SPOKESMAN PATTY TRIPLETT SAYS MR KELLEHER LIKELY WILL BE IN THE BACKGROUND MILLING ABOUT IN THE PASSENGERWAITING AREA MS TRIPLETT HOWEVER SAYS THERE IS A SLIGHT CHANCE THAT THE SHOW'S WRITERS WILL COME UP WITH A LINE OR TWO TO GIVE MR KELLEHER I HAVE A FEELING HE'S GOING TO TRY TO WEASEL HIS WAY IN MS TRIPLETT SAYS 9401120164 940112 INTERNATIONAL METALLGESELLSCHAFT RESCUE PACKAGE MEETS OPPOSITION BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT ONE OF METALLGESELLSCHAFT AG'S BIG GERMAN BANK CREDITORS ANNOUNCED ITS OPPOSITION TO A 32 BILLION MARK 184 BILLION RESCUE PACKAGE FOR THE METAL ENGINEERING AND TRADING CONCERN NORDDEUTSCHE LANDESBANK OF HANNOVER REFLECTING RESERVATIONS SHARED BY SOME OTHER CREDITORS BROKE RANKS WITH THE BIG FRANKFURT BANKS AS CREDITORS DEUTSCHE BANK AG AND DRESDNER BANK AG AND MAJOR STOCKHOLDERS HAVE BEEN LOBBYING METALLGESELLSCHAFT'S MORE THAN 100 CREDITOR BANKS TO APPROVE THE PLAN TODAY BANKING SOURCES AND ANALYSTS STILL BELIEVE THE PLAN WILL BE ACCEPTED BUT NORDLB'S OBJECTIONS INDICATED THAT CONSENSUS WON'T COME EASILY METALLGESELLSCHAFT'S NEW CHAIRMAN KAJO NEUKIRCHEN SAID LAST WEEK THAT THE COMPANY FACES LIQUIDATION UNLESS BANKS BACKED THE PROPOSAL IT INCLUDES A NEW SHARE OFFERING TO RAISE 14 BILLION MARKS A REQUEST THAT BANKS CONVERT 13 BILLION MARKS OF METALLGESELLSCHAFT DEBT INTO SUBORDINATED EQUITY AND A NEW 500 MILLIONMARK CREDIT LINE NORDLB CHAIRMAN MANFRED BODIN SAID THIS WEEK THAT NOT ALL OF METALLGESELLSCHAFT'S BANK CREDITORS WOULD APPROVE THE RESCUE PLAN MR BODIN CONTENDS THAT THE TERMS OF THE FINANCIAL PACKAGE WERE PRACTICALLY DICTATED BY THE COMPANY AND ITS LEADING BANK ALLIES NORDLB IS ONE OF THE COMPANY'S TOP FIVE BANK CREDITORS WITH EXPOSURE OF 240 MILLION MARKS HE ASSERTED THAT THE COMPANY'S BIG SHAREHOLDERS WEREN'T BEARING THEIR SHARE OF THE BURDEN THESE INCLUDE DEUTSCHE BANK DRESDNER BANK INSURER ALLIANZ AG DAIMLERBENZ AG AND THE GOVERNMENT OF KUWAIT THAT GROUP WHICH REPRESENTS 62 OF THE COMPANY'S EQUITY ALREADY HAS ENDORSED THE PLANNED EQUITY INCREASE MR BODIN ALSO OBJECTED TO THE PROPOSAL THAT BANKS ABSORB ANY SHARES STEMMING FROM THE RIGHTS ISSUE THAT GO UNPURCHASED BY SMALLER SHAREHOLDERS WHO ACCOUNT FOR 38 OF METALLGESELLSCHAFT EQUITY DEUTSCHE BANK WHICH HEADS THE STEERING COMMITTEE OF BANK CREDITORS CALLED MR BODIN'S CRITICISMS UNFOUNDED AND NOT REPRESENTATIVE OF SENTIMENTS HELD BY OTHER BANK CREDITORS THE PROPOSED CONCEPT THE FUNDAMENTALS OF WHICH HAVE ALREADY BEEN ACCEPTED BY A NUMBER OF REPUTABLE NATIONAL AND INTERNATIONAL BANKS WASN'T DICTATED BUT CAME UNDER THE TIME PRESSURE OF REQUIREMENTS SET BY CORPORATE AND BANKRUPTCY LAWS DEUTSCHE BANK SAID DEUTSCHE BANK ALSO REJECTED A PROPOSAL FROM MR BODIN TO WRITE DOWN METALLGESELLSCHAFT'S EQUITY AND BRING ITS COMMERCIAL PAPER AND BONDS INTO THE DEBT RESTRUCTURING CLAIMING THIS WOULD IMPAIR THE COMPANY'S BORROWING ABILITIES FOR YEARS BANKS ARE UNDER PRESSURE TO SAVE THE COMPANY AS THEY HAVE A TOTAL CREDIT EXPOSURE OF NINE BILLION MARKS AND A COURTDIRECTED LIQUIDATION MIGHT REPAY BANKS ONLY 40 OF THEIR LOANS UNDER GERMAN LAW 9401120163 940112 BUSINESS BRIEF FORD MOTOR CO AUTO MAKER MAY BUILD CARS FOR MAZDA TO SELL IN EUROPE FORD MOTOR CO WHICH IS DEEPENING ITS RELATIONSHIP WITH JAPAN'S TROUBLED MAZDA MOTOR CORP SAID IT IS WILLING TO REVISIT THE ISSUE OF BUILDING VEHICLES FOR MAZDA TO SELL IN EUROPE FORD HAS SPARE CAPACITY AT ITS PLANTS IN BRITAIN ACCORDING TO REMARKS BY W WAYNE BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS REPORTED BY THE FINANCIAL TIMES FORD OWNS 25 OF MAZDA FORD AND MAZDA SPOKESMEN SAID THE COMPANIES STUDIED A SIMILAR PROPOSAL LAST YEAR ONLY TO SCRAP IT IN MARCH AT THE TIME FORD CITED DETERIORATING MARKET CONDITIONS IN EUROPE AND A FAILURE TO IDENTIFY A SUITABLE JOINT PROJECT MAZDA BUILDS VEHICLES IN JAPAN FOR FORD TO SELL THE COMPANIES JOINTLY BUILD CARS IN MICHIGAN FOR THE US MARKET AND MAZDA SELLS FORDBUILT TRUCKS IN THE US OF JAPAN'S BIG FIVE AUTO MAKERS MAZDA IS THE ONLY ONE WITHOUT A PLAN FOR EUROPEAN PRODUCTION 9401120162 940112 ECONOMY FACTORY JOBS ARE SEEN RISING IN '94 BY 200000 MANUFACTURING GROUP CITES SIGNS OF BUILDING PICKUP IN HOUSES FURNITURE BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A ROSY ECONOMIC FORECAST THE NATIONAL ASSOCIATION OF MANUFACTURERS PROJECTED THAT SUSTAINED DOMESTIC GROWTH WILL HELP TO CREATE 200000 MANUFACTURING JOBS THIS YEAR MANY ECONOMIC ANALYSTS AND EVEN THE NAM'S EXECUTIVE COMMITTEE A GROUP OF 15 INDUSTRIALISTS HAVE PREDICTED FLAT EMPLOYMENT PROSPECTS FOR 1994 BUT NAM PRESIDENT JERRY JASINOWSKI SAID RESIDENTIAL BUILDING AND FURNITURE MANUFACTURING SHOW SIGNS OF A STRONG PICKUP WHICH COULD LEAD TO MORE FACTORY JOBS HE ACKNOWLEDGED HOWEVER THAT THE NAM'S ESTIMATE WAS ROBUST MODEST JOB CREATION WOULD MEAN A SHARP TURNAROUND FOR THE MANUFACTURING SECTOR WHICH LOST 181000 JOBS LAST YEAR AND 319000 IN 1992 ACCORDING TO LABOR DEPARTMENT DATA MANUFACTURING EMPLOYMENT HASN'T GROWN SINCE 1988 WHEN 226000 JOBS WERE CREATED WHEN COMPANIES SPEND MONEY NOW THEY'RE NOT LOOKING TO HIRE PEOPLE SAID THOMAS RUNIEWICZ AN INDUSTRIAL ANALYST WITH THE WEFA GROUP NEAR PHILADELPHIA THEY'RE LOOKING TO INVEST IN INNOVATIVE MACHINERY WE ARE NOT GETTING THE KIND OF REHIRING WE HAVE TRADITIONALLY HAD MR JASINOWSKI SAID OVER A MILLION JOBS ARE ASSOCIATED WITH WHAT WE REGARD AS A DECREASE IN THE HIRING HABITS LARGELY BECAUSE FIRMS ARE ATTEMPTING TO RESTORE PROFIT MARGINS INCREASED WORKER BENEFITS AND FAIRLY LOW PRICES IN THE WORLD MARKET ARE KEEPING THE PRESSURE ON PROFIT MARGINS MR JASINOWSKI SAID PRESIDENT CLINTON'S HEALTHCARE PACKAGE WOULD INCREASE THE COST OF WORKER BENEFITS BUT IT ISN'T EXPECTED TO BE ENACTED THIS YEAR AND THUS HAD LITTLE IMPACT ON THE 1994 FORECAST THE NAM HAS ASKED MR CLINTON TO SCALE BACK THE BASIC EMPLOYEE BENEFITS COMPONENT OF HIS PLAN MR JASINOWSKI SAID THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO WOULD HAVE POSITIVE SHORTTERM EFFECTS HE CALLED MR CLINTON'S 1993 BUDGET RECONCILIATION MODERATELY RESTRICTIVE HOWEVER AND SAID THE PACKAGE'S TAX INCREASES MIGHT HAMPER GROWTH INTEREST RATES AND INFLATION WILL REMAIN STABLE IN 1994 MR JASINOWSKI SAID HE ALSO PROJECTED THE WORLD ECONOMY WOULD GAIN STRENGTH THIS YEAR I'M A BIT MORE OPTIMISTIC ABOUT OUR TRADE OUTLOOK FOR 1994 THAN OTHER ANALYSTS BELIEVING THE US WILL SEE ITS EXPORTS BEGIN TO REBOUND HE SAID DUE TO STRONGER GLOBAL DEMAND FOR OUR PRODUCTS EXPORTS WILL INCREASE TO A 63 GROWTH RATE IN 1994 AND 75 IN 1995 THE NAM PREDICTED A 30 INCREASE IN GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US FOR 1994 WITH BUSINESSEQUIPMENT SPENDING RISING 9401120161 940112 WHO'S NEWS AMAX GOLD INC AMAX GOLD INC GOLDEN COLO ROGER A KAUFFMAN WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MINING CONCERN FILLING A NEW POSITION MR KAUFFMAN 49 YEARS OLD FORMERLY WAS VICE PRESIDENT OF INDUSTRIAL MINERALS AT HECLA MINING CO COEUR D'ALENE IDAHO 9401120160 940112 LETTERS TO THE EDITOR THE HIGH SOCIAL COST OF MENTAL ILLNESS THERE IS A GREAT SCENE IN ALFRED HITCHCOCK'S MOVIE THE LADY VANISHES IN WHICH THE PROFESSOR'S SOLUTION TO THE CASE IS CONVINCINGLY REFUTED IT DOES NOT BOTHER HIM IN THE SLIGHTEST MY THEORY IS PERFECTLY CORRECT HE HUFFS IT IS THE FACTS THAT ARE MISLEADING YOUR JAN 3 EDITORIAL A THERAPEUTIC STATE RAISES IMPORTANT ISSUES ABOUT MENTAL ILLNESS IT APPROPRIATELY RAISES CONCERNS ABOUT THE WAY SERVICES MAY BE OVERUSED IF THEIR COST TO THE PATIENT BECOMES MINIMAL AND WHETHER SOCIAL OR BIOLOGICAL FACTORS LEAD TO MENTAL ILLNESS BUT YOUR UNDERLYING PREMISE IS BASED ON A VIEW OF MENTAL ILLNESS AND SUBSTANCE ABUSE THAT OBSCURES THE TRUTH IT CAN ONLY BE BELIEVED IF LIKE HITCHCOCK'S PROFESSOR ONE DOESN'T LET FACTS GET IN THE WAY TO BEGIN WITH YOU IMPLY THE CLINTON ADMINISTRATION FAILED TO TAKE INTO ACCOUNT THE CONCERN FOR CONTAINING COSTS AND PROTECTING AGAINST ABUSE OF BENEFITS AND WORRY THAT WE MIGHT PROVIDE COVERAGE FOR THOSE WHO ARE SIMPLY DISSATISFIED WITH THEIR PERSONALITIES AND DESIRE A SURER TICKET TO HAPPINESS AND SOCIAL SUCCESS IN FACT UNDER THE PRESIDENT'S PLAN INDIVIDUALS WILL BE ELIGIBLE FOR MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ONLY IF THEY HAVE A MEDICALLY DIAGNOSABLE MENTAL OR SUBSTANCE ABUSE DISORDER AND ARE AT SIGNIFICANT RISK OF FUNCTIONAL IMPAIRMENT FURTHERMORE COST CONSCIOUSNESS IS SUPPORTED UNDER THE PLAN BY FAVORING THE MOST EFFECTIVE TREATMENT IN THE LEAST COSTLY MOST APPROPRIATE SETTING FOR EXAMPLE IN ORDER TO AVOID UNNECESSARY HOSPITALIZATION THE PLAN PROMOTES A SHIFT TOWARD OUTPATIENT COMMUNITYBASED CARE BUT MOST TROUBLING IS THAT YOUR ARGUMENT IS BASED ON OUTDATED STEREOTYPES LONG DISCREDITED BY SCIENTIFIC AND FISCAL REALITIES FIRST YOU IMPLY THAT MANY MENTAL HEALTH AND SUBSTANCE ABUSE DISORDERS ARE INCONSEQUENTIAL WHEN IN FACT MOST ARE SERIOUS COSTLY AND POTENTIALLY DEADLY A RECENT REVIEW OF ALL SUICIDE STUDIES CONDUCTED BY THE NEW ENGLAND JOURNAL OF MEDICINE CONCLUDED THAT 90 OF SUICIDES WERE RELATED TO DEPRESSIVE ILLNESS FURTHER ACCORDING TO A RECENT MASSACHUSETTS INSTITUTE OF TECHNOLOGY STUDY MENTAL ILLNESS AND SUBSTANCE ABUSE DISORDERS COST THE COUNTRY MORE EACH YEAR IN TERMS OF EMPLOYEE PRODUCTIVITY AND ABSENTEEISM THAN CANCER CORONARY HEART DISEASE CHRONIC LUNG DISEASE OR AIDS SPECIFICALLY THE MIT STUDY REVEALS DEPRESSION ALONE COSTS SOCIETY 437 BILLION ANNUALLY OVER ONEHALF OF WHICH IS PAID DIRECTLY BY AMERICAN BUSINESSES THE HEALTH SECURITY ACT DOES NOT CONFUSE THE TRIVIAL COMPLAINTS OF DAILY LIVING WITH CAREFULLY DIAGNOSED MENTAL DISORDERS SCHIZOPHRENIA MAJOR DEPRESSION MANICDEPRESSION AS WELL AS SERIOUS ANXIETY CONDITIONS SUCH AS PANIC DISORDERS AND OBSESSIVECOMPULSIVE DISORDER TAKE A SERIOUS HUMAN AND ECONOMIC TOLL SECOND YOU IMPLY THAT COVERAGE OF MENTAL ILLNESS AND SUBSTANCE ABUSE IS NOT COSTEFFECTIVE WHEN IN FACT NEARLY ALL MEDIUM AND LARGE FIRMS INCLUDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE IN THEIR HEALTH INSURANCE PLANS AND SEE IT AS ESSENTIAL THE JOURNAL ITSELF REPORTED IN NOVEMBER 1992 ON FIRST CHICAGO CORP THAT IT REVIEWS EACH PATIENT'S MENTAL HEALTH TREATMENT CASE BY CASE BUT DOESN'T IMPOSE ANY ACROSSTHEBOARD LIMITS EVEN ON PSYCHOTHERAPY THE TOTAL COST LESS THAN 300 PER EMPLOYEE I WONDER DOES THE WALL STREET JOURNAL PRACTICE WHAT IT PREACHES AND EXCLUDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE FOR ITS OWN EMPLOYEES OR LIKE MOST EMPLOYERS DOES IT PROVIDE COVERAGE FOR MENTAL ILLNESS AND SUBSTANCE ABUSE NOT VERY DIFFERENT FROM THAT INITIALLY PROPOSED BY THE ADMINISTRATION THIRD YOU BELITTLE DECADES OF PROGRESS IN PSYCHOPHARMACOLOGY IN YOUR REFERENCE TO THE PROZAC CRAZE ABUSES OF PRESCRIPTION DRUGS OCCUR ALL TOO OFTEN NO MATTER WHAT THEY TREAT BUT WIDE USE BY ITSELF DOES NOT IMPLY A CRAZE IF IT DID YOU ALSO WOULD HAVE TO BEMOAN THE CONTINUING PENICILLIN CRAZE THE FACT IS PSYCHIATRIC MEDICATIONS INCLUDING ANTIDEPRESSANTS SUCH AS PROZAC HAVE BEEN DEVELOPED FOR THE TREATMENT OF DIAGNOSABLE MENTAL ILLNESSES NOT THE CASUAL PURSUIT OF HAPPINESS MOREOVER THE POSITIVE IMPACT OF PSYCHOPHARMACOLOGY IS REAL AND MEASURABLE FOR INSTANCE THANKS TO RELATIVELY NEW MEDICATIONS THE EFFICACY RATE FOR THE TREATMENT OF ACUTE EPISODES OF SCHIZOPHRENIA IS NOW 60 COMPARED WITH SAY 41 FOR ANGIOPLASTY OR 52 FOR ATHERECTOMY LITHIUM USED FOR THE TREATMENT OF MANICDEPRESSION HAS SAVED THE ECONOMY BILLIONS OF DOLLARS OVER THE PAST TWO DECADES AND CLOZAPINE NOW ALLOWS MANY OF THE MOST SERIOUSLY ILL TO LIVE THEIR LIVES PRODUCTIVELY OUTSIDE THE RESTRICTIVE AND EXPENSIVE SETTINGS OF A HOSPITAL FINALLY YOU EXPRESS THE FEAR THAT IN PROVIDING SUCH COVERAGE THERE NEVER WILL BE LIMITS FOR TAXPAID TREATMENTS LET ME ASSURE YOU THAT QUESTION WAS A MATTER OF INTENSE CONCERN AND DEBATE FOR ALL OF US WHO CONTRIBUTED TO THE PRESIDENT'S PLAN AND THE PLAN COVERS THIS CONCERN IN FACT THE FAILURE TO PROVIDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE WOULD RESULT IN FALSE SAVINGS RECENT STUDIES HAVE PROVEN THAT PROVIDING TREATMENT FOR THESE DISORDERS HELPS DECREASE USE OF GENERAL HEALTH CARE SERVICES CAN GOVERNMENT DO EVERYTHING OF COURSE NOT NOR SHOULD IT AND I COULD NOT HELP BUT NOD MY HEAD IN AGREEMENT AS I READ YOUR CALL FOR A STABILIZED SOCIAL ORDER THAT STARTS WITH HAVING A PARENT TEND TO A CHILD WITH HAVING A FATHER STAY WITH A MOTHER ABSOLUTELY RIGHT BUT FOR MILLIONS OF INDIVIDUALS ATTENTIVE AND LOVING FAMILIES CANNOT BE A SUBSTITUTE FOR MEDICALLY NECESSARY TREATMENT FOR MENTAL ILLNESSES OR SUBSTANCE ABUSE DISORDERS WE DO NOT LIVE IN A WORLD WHERE PEOPLE CAN WILL THEMSELVES WELL SO WE MUST CREATE A SYSTEM THAT PROVIDES CARE WHILE CONTROLLING COSTS OUR CURRENT HEALTH CARE SYSTEM DOES NOT MEET THESE GOALS IT INSURES THE HEALTHY BUT TOO OFTEN AVOIDS THE SICK ALLOWING THIS SYSTEM TO CONTINUE TO SPIRAL OUT OF CONTROL MAKES NO COMMON OR FISCAL SENSE AND IGNORES THE FACTS 9401120159 940112 TUESDAY'S MARKETS STOCKS DROP AS INVESTORS TAKE PROFITS INDUSTRIALS FALL 1520 BOND PRICES EDGE UP THE DOLLAR ADVANCES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS RETREATED AS INVESTORS TOOK PROFITS AFTER MONDAY'S RECORDSETTING RUN BOND PRICES ENDED MODESTLY HIGHER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL 1520 POINTS TO 385031 AFTER HITTING HIGHS FOR FOUR STRAIGHT DAYS STANDARD & POOR'S 500STOCK INDEX LOST 114 TO 47413 AND THE NASDAQ COMPOSITE INDEX EASED 117 TO 78552 WE'VE HAD A PRETTY GOOD YEAR SO FAR AND IT LOOKS LIKE YOU HAD SOME PROFITTAKING YESTERDAY SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES MR CANELO SAID HE THINKS STOCK INVESTORS WILL WAIT TO SEE WHERE INTEREST RATES ARE HEADED BEFORE THEY PUSH STOCK PRICES MUCH HIGHER IF FOR INSTANCE TOMORROW'S CONSUMER PRICE REPORT IS BENIGN ENOUGH TO DRIVE THE YIELD ON THE TREASURY'S 30YEAR BOND BELOW 620 THEN THE DOW JONES INDUSTRIALS COULD MAKE A STAB AT 3900 MR CANELO SAID TODAY INVESTORS WILL GET THEIR FIRST PEEK AT THE INFLATION PICTURE WHEN THE LABOR DEPARTMENT RELEASES ITS REPORT ON DECEMBER PRODUCER PRICES MANY ANALYSTS ARE EXPECTING THE INDEX TO DROP 02 DESPITE YESTERDAY'S STOCK MARKET SETBACK MANY ANALYSTS THINK STOCK PRICES WILL RESUME THEIR RISE LARGELY BECAUSE OF THE MOUNTAINS OF CASH THAT HAVE BEEN POURING INTO STOCK MUTUAL FUNDS WE ARE RUNNING AT UNBELIEVABLE LEVELS SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUAL FUND COMPANY AS OF YESTERDAY MR LITVACK SAID A NET 13 BILLION HAD FLOODED INTO FIDELITY'S STOCK AND BOND FUNDS THIS MONTH WITH ABOUT 80 OF THE MONEY GOING TO STOCKS OF THAT TWOTHIRDS OF THE MONEY HAD FLOWED INTO DOMESTIC STOCK FUNDS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 034 TO 11291 IN MAJOR MARKET ACTION STOCK PRICES DROPPED VOLUME TOTALED 3046 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1145 ISSUES FELL AND 1004 ROSE BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE LESS THAN 1/8 POINT OR UNDER 125 FOR EACH 1000 FACE AMOUNT TO YIELD 623 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17416 MARKS AND 11240 YEN COMPARED WITH 17346 MARKS AND 11225 YEN MONDAY 9401120158 940112 PEPPERAND SALT IN BUSINESSES WHICH ARE FAILING NOT QUALIFYING FOR THE OTHERS 9401120157 940112 TEXAS JOURNAL ECONOMIC FOCUS WITH ITS SIGHTS SET LOWER HEREFORD DOES JUST FINE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL HEREFORD TWENTYSEVEN YEARS AGO THIS PANHANDLE TOWN'S AMBITIONS SEEMED AS LIMITLESS AS THE TREELESS PLAINS IT OCCUPIES ENSHRINED IN A PAGEONE STORY BY THIS NEWSPAPER AS A PARAGON OF ECONOMICDEVELOPMENT PROWESS HEREFORD HAD JUST CAPPED A BLITZKRIEG CAMPAIGN TO ATTRACT NEW COMPANIES BY LANDING A NEW 23 MILLION BEETSUGAR REFINERY POPULATION HAD SOARED 40 IN FIVE YEARS TO 12568 AND JOBS WERE UP BY 600 LIGHT PLANES SHUTTLE IN AND OUT OF THE LOCAL AIRSTRIP BRINGING ENGINEERS DEVELOPERS AND EAGER EASTERNERS WITH MONEY TO SPEND THE ARTICLE OBSERVED QUOTING A LOCAL CATTLE FEEDLOT OPERATOR SAYING I NEVER THOUGHT WE'D HAVE TO TURN AWAY CAPITAL BUT IT'S COME TO THAT BUT THESE DAYS THE AIRPORT IS MOSTLY QUIET AND SPENDTHRIFT EASTERNERS ARE A RARE COMMODITY THE DOWNTOWN WHICH WE SAID THROBS WITH NEW VITALITY NOW HAS ITS SHARE OF EMPTY STOREFRONTS AND NEW JOBS ARE SCARCE AS IF THAT WASN'T ENOUGH HEREFORD APPEARS ON THE VERGE OF LOSING ONE OF ITS CULTURAL TREASURES THE NATIONAL COWGIRL HALL OF FAME AND WESTERN HERITAGE CENTER FOR LACK OF VISITORS FOR A WHILE THEY WERE GOING TO CONQUER THE WORLD IT WAS UNBELIEVABLE SAYS TOM PATTERSON PRESIDENT OF THE AMARILLO CHAMBER OF COMMERCE BUT NOW HE ADDS THE TOWN HAS KIND OF HIT A FLAT SPOT IN SOME WAYS IT'S A SPOT IN WHICH MUCH OF RURAL TEXAS FINDS ITSELF WITH OIL PRICES IN THE TANK AND AGRICULTURE A DWINDLING PART OF THE ECONOMY SMALL TOWNS THROUGHOUT THE STATE ARE GRAPPLING WITH JOB LOSSES AND AN AGING DECLINING POPULATION IN THE PANHANDLE JOBS GREW AT A MINUSCULE 01 ANNUAL RATE BETWEEN 1982 AND 1992 A PERIOD WHEN TEXAS EMPLOYMENT AS A WHOLE GREW 15 BUT AMID THIS GLOOMY OUTLOOK SOME PEOPLE STILL VIEW HEREFORD AS A PARAGON OF SORTS ALTHOUGH IT HASN'T ATTRACTED ANY MAJOR BUSINESSES IN YEARS SOME HOMEGROWN OPERATIONS HAVE THRIVED AND WHILE POPULATION FELL SLIGHTLY DURING THE LAST CENSUS HEREFORD STILL HAS ABOUT 10 MORE PEOPLE THAN IT DID IN 1970 MUCH OF RURAL TEXAS AS MUCH OF RURAL AMERICA IS IN A STATE OF DECLINE AND IF HEREFORD HAS BEEN ABLE TO HOLD ITS OWN IT HAS BEEN SUCCESSFUL SAYS GREG TAYLOR A RURAL SOCIOLOGIST AT TEXAS A&M UNIVERSITY FOR HEREFORD HOLDING ITS OWN HAS MEANT FOCUSING INWARD RATHER THAN CHASING EVERY BUSINESSRELOCATION PROSPECT THAT COMES ALONG A GAME THAT'S INCREASINGLY COMPETITIVE AND TOUGH TO WIN TO BE SURE BUSINESS LEADERS STILL SPEND TIME AT TRADE SHOWS AND THE LIKE COURTING COMPANIES IN CALIFORNIA AND THE EAST COAST BUT THE EFFORT IS MINIMAL MADE IN CONCERT WITH OTHER PANHANDLE TOWNS AS PART OF A GENERAL CAMPAIGN TO BOOST THE REGION'S IMAGE INSTEAD THE MAJORITY OF OUR GROWTH IN THE LAST FEW YEARS HAS COME FROM WITHIN SAYS F MICHAEL CARR EXECUTIVE VICE PRESIDENT OF THE DEAF SMITH COUNTY CHAMBER OF COMMERCE BASED HERE FOR INSTANCE WHEN TENNECO INC'S JI CASE UNIT APPROACHED A LOCAL MANUFACTURER POARCH BROTHERS INC ABOUT MAKING A NEW IMPLEMENT FOR A COTTON HARVESTER HEREFORD INDUSTRIAL FOUNDATION INC SWUNG INTO ACTION THE NONPROFIT ORGANIZATION FUNDED CONSTRUCTION OF A 250000 BUILDING WHICH IT LEASED TO POARCH FOR THE NEW BUSINESS ADDING 25 JOBS LIKEWISE WHEN IMPERIAL HOLLY CORP ANNOUNCED IT WAS CONSIDERING AN 117 MILLION EXPANSION TO ITS BEETSUGAR REFINERY THE COUNTY OVERCAME ITS LONGTIME AVERSION TO TAX BREAKS AND GRANTED THE COMPANY A FIVEYEAR TAX ABATEMENT BUT PERHAPS THE MOST TELLING EXAMPLE OF HOMEGROWN GROWTH CAN BE FOUND AT HEREFORD BIPRODUCTS INC A THRIVING IF PUNGENT COMPANY ON THE EDGE OF TOWN FOUNDED 25 YEARS AGO BY GARTH MERRICK THE OPERATION INITIALLY CONSISTED OF TWO EMPLOYEES AND TWO PICKUP TRUCKS THEIR SERVICE PICKING UP DEAD COWS AT FEEDLOTS AND SELLING OFF THE PARTS TODAY HEREFORD BIPRODUCTS WHOSE SLOGAN IS YOUR LOCAL USED COW DEALER IS THE BIGGEST SUCH COMPANY IN TEXAS THE 500EMPLOYEE ENTERPRISE HAS ALSO BRANCHED OFF INTO PET TREATS IT SELLS THE BONES AND RAWHIDE TAILS AND EARS OF COWS THROUGH PET STORES AND INTO DRY PET FOOD AND IT HAS BEGUN SHIPPING PRODUCTS TO JAPAN AND THE PHILIPPINES STILL THERE ARE SOME PEOPLE WHO MISS THE OLD DAYS WHEN THE COMMUNITY WAS INVOLVED IN SEXIER PURSUITS SUCH AS A LETTERWRITING CAMPAIGN TO PURSUADE CONGRESS TO CHANGE SUGARBEET QUOTAS AND MAKE A LOCAL REFINERY POSSIBLE THAT WAS ALSO ABOUT THE TIME THE LOCAL CHAMBER OF COMMERCE SPONSORED THE CREATION OF THE NATIONAL COWGIRL HALL OF FAME A MUSEUM TO HONOR WOMEN OF THE WEST AND IT WAS HOPED FUEL A BUSTLING TOURIST TRADE BUT HEREFORD'S ISOLATION IT'S 50 MILES TO AMARILLO THE NEAREST BIG TOWN MADE IT TOUGH TO ATTRACT VISITORS SO NOW THE INSTITUTION MAY MOVE SOMEPLACE MORE POPULOUS WE JUST DON'T GET ENOUGH MONEY THROUGH THE FRONT DOOR SAYS MARGARET FORMBY PRESIDENT WE'RE OFF THE BEATEN PATH THE KING STUMBLES EVEN MIGHTY AUSTIN STRIKES OUT OCCASIONALLY WHEN COMPUTER MAKER PACKARD BELL ELECTRONICS INC SAID IT WAS MOVING ITS SERVICE AND SUPPORT CENTER AS WELL AS ABOUT 500 JOBS TO THE SALT LAKE CITY AREA FROM CHATSWORTH CALIF IT NOTED THAT AUSTIN WAS ONE OF THE SITES CONSIDERED DURING THE FOURMONTH SEARCH PACKARD BELL DECLINED TO SAY WHY AUSTIN LOST BUT THE CITY APPARENTLY DIDN'T EVEN MAKE THE SHORT LIST WE ARE NOT AWARE PACKARD BELL WAS LOOKING AT AUSTIN AT ALL SAYS ANGELOS ANGELOU HEAD OF ECONOMIC DEVELOPMENT FOR THE GREATER AUSTIN CHAMBER OF COMMERCE 9401120156 940112 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 2046 MILLION OF NOTES DUE JAN 21 1997 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE JAN 14 1997 ACCORDING TO MCM CORPORATEWATCH THE BONDS WILL PAY QUARTERLY AND FLOAT DAILY AT THE PRIME RATE MINUS 255 BASIS POINTS THE FIRST COUPON WILL BE SET FRIDAY THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE JAN 5 1999 PRICED AT PAR TO YIELD 43 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE FIRST COUPON WILL BE SET JULY 5 THE NOTES WILL STEP UP TO 563 JAN 5 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF FLOATINGRATE NOTES DUE JAN 14 1997 PRICED INITIALLY AT PAR TO YIELD 342 ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT WEEKLY AND PAY QUARTERLY AT THE PRIME RATE MINUS 258 BASIS POINTS THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE JAN 18 1996 PRICED INITIALLY AT PAR TO YIELD 41 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP DEBENTURES DUE JAN 20 1997 PRICED AT PAR TO YIELD 41 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE FIRST COUPON IS PRICED AT SPREAD OF 60 BASIS POINTS OVER TREASURYS THE NOTES WILL STEP UP TO 48 JAN 20 1995 FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE JAN 24 2001 PRICED AT PAR TO YIELD 569 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 54 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF NOTES DUE JAN 21 1997 PRICED AT PAR TO YIELD 438 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE JAN 19 1996 PRICED AT PAR TO YIELD 407 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FIRST USA BANK 350 MILLION OF BANK NOTES DUE JAN 15 1999 PRICED AS 575S AT 99574 TO YIELD 585 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FIRST USA BANK IS A FIRST USA INC UNIT INTERNATIONAL LEASE FINANCE CORP 100 MILLION OF NOTES DUE JAN 15 1997 PRICED AS 475S AT 99861 TO YIELD 48 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC INTERNATIONAL LEASE FINANCE IS A UNIT OF AMERICAN INTERNATIONAL GROUP INC SEARS ROEBUCK & CO 300 MILLION OF NOTES DUE JAN 15 2004 PRICED AS 625S AT 99573 TO YIELD 6308 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SYSTEM ENERGY RESOURCES INC 435 MILLION OF SECUREDLEASEOBLIGATION BONDS PRICED THROUGH MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 365 MILLION OF SECUREDLEASEOBLIGATION BONDS WAS PRICED AT PAR TO YIELD 743 THE BONDS WERE PRICED AT A SPREAD OF 180 BASIS POINTS ABOVE TREASURYS THE BONDS AMORTIZE FOR AN 11YEAR AVERAGE LIFE AND HAVE A 17YEAR FINAL MATURITY THE SECOND TRANCHE 70 MILLION OF SECUREDLEASEOBLIGATION BONDS WAS PRICED AT A PAR TO YIELD 82 THE BONDS WERE PRICED AT A SPREAD OF 183 BASIS POINTS ABOVE TREASURYS THE BONDS AMORTIZE FOR A 197YEAR AVERAGE LIFE AND HAVE A 21YEAR FINAL MATURITY BOTH TRANCHES ARE NONCALLABLE FOR 10 YEARS AND ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P WACHOVIA CORP 250 MILLION OF SUBORDINATED NOTES DUE FEB 1 2009 PRICED AS 6375S AT 9987 TO YIELD 6388 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WACHOVIA IS A UNIT OF FIRST WACHOVIA CORP CRESCENT AIRWAYS CORP INITIAL OFFERING OF ONE MILLION UNITS PRICED AT 10125 EACH THROUGH UNDERWRITERS LED BY THOMAS JAMES ASSOCIATES EACH UNIT CONSISTS OF TWO COMMON SHARES AND ONE WARRANT EXERCISABLE FOR THE FIRST 24 MONTHS AT 6 AND FOR THE FOLLOWING 24 MONTHS AT 750 ALBUQUERQUE NEW MEXICO 1122 MILLION OF SERIES 1994A AND SERIES 1994B JOINT WATER AND SEWERSYSTEM REVENUE AND REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP INCLUDED ARE 1029 MILLION OF SERIES 1994A REFUNDING AND IMPROVEMENT REVENUE BONDS YIELDS RANGE FROM 275 IN 1995 TO 475 IN 2005 ALSO INCLUDED ARE 93 MILLION SERIES OF 1994B TAXABLE REFUNDING REVENUE BONDS DUE 1995 BONDS DUE JANUARY 1995 ARE 37S PRICED TO YIELD 376 BONDS DUE JULY 1995 ARE 4S PRICED TO YIELD 407 MOODY'S RATED THE ISSUE SINGLEA1 S&P ASSIGNED A DOUBLEA RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A DOUBLEAMINUS RATING ANCHORAGE ALASKA 1339 MILLION OF TELEPHONEUTILITY REVENUE REFUNDING BONDS PRICED BY A LEHMAN BROTHERS INC GROUP TO YIELD FROM 25 IN 1994 TO 517 IN 2010 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 109 MILLION OF CERTIFICATES OF PARTICIPATION PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 38 IN 1999 TO 527 IN 2023 THE BONDS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION 1415 MILLION SAVE OUR COAST REFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 24 IN JULY TO 519 IN 2012 MOST OF THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 3805 MILLION MORTGAGE REVENUE REFUNDING BONDS PRICED BY A JP MORGAN SECURITIES INC GROUP YIELDS FOR THE BONDS RANGE FROM 225 IN AUGUST TO 553 IN 2024 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND TRIPLEA BY S&P OHIO BUILDING AUTHORITY 362 MILLION OF 1994 SERIES A REFUNDING BONDS PRICED BY AN AG EDWARDS & SONS INC GROUP INCLUDED ARE 2129 MILLION OF STATE CORRECTIONALFACILITIES REFUNDING BONDS PRICED TO YIELD FROM 2 IN APRIL 1994 TO 495 IN 2006 THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE 969 MILLION OF STATEFACILITIES REFUNDING BONDS FOR VERN RIFFE CENTER ARE PRICED TO YIELD FROM 2 IN APRIL 1994 TO 5 IN 2008 BONDS DUE IN 19992008 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P THE 431 MILLION OF LOCALJAILGRANT REFUNDING BONDS ARE PRICED TO YIELD FROM 2 IN APRIL 1994 TO 5 IN 2008 BONDS DUE IN 19992008 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P THE 92 MILLION OF STATEFACILITIES REFUNDING BONDS FOR THE DNR FOUNTAIN SQUARE PROJECT ARE PRICED TO YIELD FROM 2 IN APRIL 1994 TO 505 IN 2008 THEY ARE INSURED BY THE CAPITAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P REEDY CREEK IMPROVEMENT DISTRICT FLORIDA 2189 MILLION OF SERIES 19941 UTILITIES REVENUE IMPROVEMENT AND REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 245 IN OCTOBER TO 53 IN 2019 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P TENNESSEE VALLEY AUTHORITY 250 MILLION OF FIRSTINSTALLMENT SERIES BONDS DUE MARCH 15 1997 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE FIRST COUPON WILL BE SET MONDAY AND WILL PAY QUARTERLY AND FLOAT WEEKLY AT A SPREAD OF 18 BASIS POINTS ABOVE THE THREEMONTH TREASURYBILL EQUIVALENT THE ISSUE NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC TEXAS MUNICIPAL POWER AGENCY 1693 MILLION OF SERIES 1994 REFUNDING REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP TO YIELD FROM 3 IN 1995 TO 53 IN 2014 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P UNIVERSITY OF CALIFORNIA 2956 MILLION OF REFUNDING REVENUE BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 3 IN 1995 TO 525 IN 201316 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WAKE COUNTY NORTH CAROLINA 1561 MILLION OF IMPROVEMENT BONDS APPARENTLY WON BY A JP MORGAN SECURITIES INC GROUP THE 115 MILLION OF NEWMONEY BONDS HAVE YIELDS FROM 225 IN 1995 TO 495 IN 2010 AND 2011 JP MORGAN APPARENTLY WON THE 411 MILLION OF REFUNDING BONDS WITH YIELDS FROM 225 IN 1995 TO 465 IN 2007 THIS OFFERING HAS TRIPLEA RATINGS FROM MOODY'S AND S&P BANK AUSTRIA AG AUSTRIA 125 MILLION SWISS FRANCS OF 3 PUBLIC BONDS WITH EQUITYPURCHASE WARRANTS DUE FEB 28 2001 PRICED AT PAR VIA BANCA DEL GOTTARDO WARRANTS EXERCISABLE TO FEB 28 1997 TO BUY BANK AUSTRIA PARTICIPATING SHARES AT STRIKE PRICE 400 SCHILLINGS A PREMIUM OF ABOUT 336 FEES TWO BELGIUM SOVEREIGN 500 MILLION OF 55 EUROBONDS DUE NOV 5 2003 AT ISSUE AND REOFFER PRICE 96696 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 599 A MARGIN OF 24 BASIS POINTS OVER COMPARABLE US TREASURY BONDS WILL TRADE INTERCHANGEABLY WITH 500 MILLION OF IDENTICAL BONDS OUTSTANDING OTHER TERMS UNCHANGED FEES 0325 COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN FRANCE 35 BILLION FRENCH FRANCS OF 25 CONVERTIBLE BONDS DUE JAN 1 2001 AT ISSUE PRICE 255 FRANCS VIA SOCIETE GENERALE ISSUE SPLIT INTO 24 BILLION FRANC GLOBAL TRANCHE AND 11 BILLION FRANC TRANCHE AS PRIORITY PLACEMENT FOR EXISTING SHAREHOLDERS BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT 307 FRANCS FROM FEB 2 TO DEC 31 2000 PREMIUM OVER FRIDAY'S CLOSING SHARE PRICE RISES FROM 1278 ON DAY OF LAUNCH TO 3578 AT MATURITY IF NOT CONVERTED BONDS YIELD 503 AT MATURITY BONDS CALLABLE FROM JAN 1 1997 AT ACCRETED VALUE IF SHARE PRICE AT LEAST 110 OF CONVERSION PRICE CREDIT SUISSE GIBRALTAR SWISS PARENT 75 MILLION OF 525 EUROBONDS DUE FEB 1 1996 AT ISSUE PRICE PAR VIA CS FIRST BOSTON INC REDEMPTION AT 100 PLUS FOLLOWING 15 TIMES DIFFERENCE OF 722 LESS S3 MINIMUM ZERO S3 EQUALS AVERAGE OF THREEYEAR OFFER SWAP RATES FOR ITALIAN LIRE SPANISH PESETA AND SWEDISH KRONE THREE DAYS PRIOR TO MATURITY S3 DETERMINED JAN 29 1996 SETTINGS OF THREEYEAR LIRE SWAP RATE PESETA SWAP RATE AND KRONE SWAP RATE AS DETERMINED BY REFERENCE TO FIVE DEALERS GUARANTOR CREDIT SUISSE SA FEES UNDISCLOSED DENYO CO JAPAN 50 MILLION OF 1375 EUROBONDS WITH EQUITY WARRANTS DUE JAN 27 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC GUARANTOR DAIICHI KANGYO BANK WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM FEB 10 TO JAN 20 1998 TERMS FIXED TUESDAY FEES 225 LESS 02 FOR LEAD MANAGER EUROFIMA SUPRANATIONAL 225 MILLION ECUS OF 55 EUROBONDS DUE FEB 9 2001 AT ISSUE PRICE 101575 VIA SWISS BANK CORP REOFFERED AT PAR FEES 1875 EUROPEAN INVESTMENT BANK SOVEREIGN ONE TRILLION LIRE OF 745 EUROBONDS DUE FEB 4 1999 AT ISSUE AND REOFFER PRICE PAR VIA BANCA DI ROMA CREDITO ITALIANO ISTITUTO BANCARIO SAN PAOLO DI TORINO AND BANCA COMMERCIALE ITALIANA BONDS YIELD 745 FEES 025 FINNISH EXPORT CREDIT LTD FINNISH AGENCY TWO BILLION FINNISH MARKKAS OF 6 GLOBAL BONDS DUE JAN 15 1999 AT ISSUE AND REOFFER PRICE 9945 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 613 A MARGIN OF 25 BASIS POINTS OVER COMPARABLE FINNISH GOVERNMENT BOND FEES 03 FORD CREDIT AUSTRALIA LTD US PARENT 75 MILLION AUSTRALIAN DOLLARS OF 675 EUROBONDS DUE FEB 25 1999 AT ISSUE PRICE 1014 VIA HAMBROS BANK LTD BONDS YIELD 686 A SPREAD OF 58 BASIS POINTS ABOVE AUSTRALIAN GOVERNMENT BOND CURVE OF FEBRUARY 1999 GUARANTOR FORD MOTOR CREDIT CO FEES TWO LESS 0125 FOR LEAD MANAGER INTERNATIONAL FINANCE CORP SUPRANATIONAL 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 20 1999 AT ISSUE PRICE 10599 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 60 BASIS POINTS FEES UNDISCLOSED ITALY SOVEREIGN 300 BILLION YEN OF 35 EUROBONDS DUE JUNE 20 2001 AT ISSUE AND REOFFER PRICE 9998 VIA DAIWA EUROPE LTD AND JP MORGAN SECURITIES LTD REOFFERED TO YIELD 3503 A MARGIN OF 41 BASIS POINTS OVER COMPARABLE JAPANESE GOVERNMENT BOND FEES 03 PAYABLE SEMIANNUALLY KFW INTERNATIONAL FINANCE INC GERMAN PARENT 250 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 1003 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND DAIWA EUROPE LTD REOFFERED AT 98625 TO YIELD 669 A MARGIN OF 12 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES TWO KURARAY CO JAPAN 200 MILLION OF 15 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE JAN 27 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD WARRANTS EXERCISABLE TO PURCHASE ORDINARY COMPANY SHARES FROM FEB 14 TO JAN 13 1998 TERMS FIXED JAN 19 FEES 225 LESS 015 FOR LEAD MANAGER MANITOBA CANADIAN PROVINCE 350 MILLION OF NOTES DUE JAN 19 2004 PRICED AS 6125S AT 99903 TO YIELD 6138 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE US TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NGK SPARKPLUG CO JAPAN 250 MILLION OF 15 EUROBONDS WITH EQUITY WARRANTS DUE JAN 27 1998 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD WARRANTS EXERCISABLE TO PURCHASE ORDINARY COMPANY SHARES FROM FEB 10 TO JAN 20 1998 TERMS FIXED TUESDAY FEES 225 LESS 02 FOR LEAD MANAGER NORDIC INVESTMENT BANK SUPRANATIONAL 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 25 1999 AT ISSUE PRICE 10482 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS 05 POINT LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FEES UNDISCLOSED VIENNA AUSTRIAN CITY 200 MILLION SWISS FRANCS OF 4 PUBLICLY LISTED BONDS DUE FEB 16 2001 PRICED AT 1025 VIA UNION BANK OF SWITZERLAND FEES 25 WESTLB FINANCE CURACAO NV GERMAN PARENT ONE BILLION MARKS OF 6 EUROBONDS DUE FEB 9 2004 AT ISSUE PRICE 1022 VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE RECOMMENDED REOFFER 998 TO YIELD 603 A SPREAD OF 45 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR WESTDEUTSCHE LANDESBANK FEES 25 9401120155 940112 WHO'S NEWS APPLEBEE'S INTERNATIONAL INC APPLEBEE'S INTERNATIONAL INC OVERLAND PARK KAN LLOYD L HILL FORMER PRESIDENT OF KIMBERLY QUALITY CARE WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR HILL HAS ALSO BEEN AN APPLEBEE'S DIRECTOR SINCE 1989 HE SUCCEEDS KENNETH HILL WHO WAS NAMED TO THE NEW POST OF PRESIDENT OF INTERNATIONAL DEVELOPMENT AT THE RESTAURANT CONCERN THE TWO MEN AREN'T RELATED 9401120154 940112 TUCSON ELECTRIC GETS RATE RISE TUCSON ARIZ TUCSON ELECTRIC POWER CO SAID IT WON A RATE INCREASE FROM THE ARIZONA CORPORATION COMMISSION THAT WILL BOOST ANNUAL REVENUE BY 216 MILLION THE COMPANY HAD REQUESTED A 49 MILLION RATE INCREASE PROMPTED BY THE STATE REGULATORS' DECISION THE COMPANY SAID IT EXPECTED TO TAKE A WRITEOFF OF 13 MILLION TO 15 MILLION AGAINST 1993 RESULTS RELATED TO ONE OF ITS PLANTS 9401120153 940112 MANAGING YOUR CAREER BY JULIE AMPARANO LOPEZ YOU THOUGHT YOU HAD SURVIVED EVERYTHING THE MERGERS OF THE 1980S THE LAYOFFS OF THE 1990S NOW YOU HAVE BEEN UNFAIRLY ACCUSED OF SEXUAL HARASSMENT AT WORK IS THIS THE END OF YOUR CAREER NOT NECESSARILY YOUR JOB AND YOUR REPUTATION CAN SURVIVE EVEN A CRISIS OF THIS MAGNITUDE CAREER ADVISERS SAY BUT YOU MUST TAKE IMMEDIATE ACTION TO PROTECT YOURSELF MANEUVERING TACTFULLY AMONG SUPERIORS AND SUBORDINATES ABOVE ALL YOU SHOULD KEEP A COOL HEAD YOU DON'T WANT TO DO OR SAY ANYTHING THAT CAN LEAVE A BAD IMPRESSION OR DAMAGE YOUR REPUTATION ANY FURTHER EXPLAINS H RAD EANES III A NEW YORK SENIOR CONSULTANT WITH PERSONNEL DECISIONS INC A MINNEAPOLIS CONSULTING FIRM THAT SPECIALIZES IN ASSESSMENT AND DEVELOPMENT YOU WANT TO BE BEYOND REPROACH A SUCCESSFUL SENIOR MANAGER AT A MAJOR MANUFACTURER IN THE SOUTHEAST TORPEDOED HIS CAREER BECAUSE HE DIDN'T KEEP COOL AFTER HIS SECRETARY FALSELY ACCUSED HIM OF SEXUAL HARASSMENT HE LAUNCHED AN ANGRY EXPLETIVEFILLED TIRADE WHEN HIS BOSS TOLD HIM ABOUT THE ALLEGATIONS THE 275000AYEAR EXECUTIVE REPEATED HIS TANTRUM TO COLLEAGUES AND SUBORDINATES AND THEN UNSUCCESSFULLY TRIED TO GET HIS SECRETARY FIRED COMPANY OFFICIALS QUICKLY CLEARED THE ACCUSED MANAGER BUT THAT DIDN'T HELP HIM MUCH HE HAD LOST THE RESPECT AND CONFIDENCE OF NEARLY EVERYONE MR EANES RECALLS SIX MONTHS LATER THE EXECUTIVE QUIT TO TAKE A LOWERPAYING JOB AT A SMALLER BUSINESS ANGRY OUTBURSTS GIVE YOUR ACCUSER MORE CREDIBILITY AND UNDERMINE YOUR MANAGEMENT AUTHORITY NOTES ADELE SCHEELE A NEW YORK CAREER STRATEGIST RAGE TOO OFTEN IS ASSOCIATED WITH GUILT SHE ADDS INSTEAD DR SCHEELE ADVISES YOU SHOULD RESTRICT YOUR EMOTIONAL DISPLAYS TO ASTONISHMENT HURT DISBELIEF AND EVEN GRIEF BUT DON'T IGNORE OR SCOFF AT UNFOUNDED SEXUALHARASSMENT CHARGES WASHINGTON DC AEROSPACE EXECUTIVE DT HAMILTON SAYS THAT HE LANDED IN THE UNEMPLOYMENT LINE LAST YEAR BECAUSE HE DIDN'T TAKE A DISGRUNTLED UNDERLING'S ALLEGATIONS VERY SERIOUSLY THE FEMALE PROFESSIONAL VOWED TO CHARGE THE EXECUTIVE WITH SEXUAL HARASSMENT AFTER HE REJECTED HER FOR A PROMOTION I JUST SHRUGGED OFF THE THREAT AND KEPT IT TO MYSELF THE 50YEAROLD MR HAMILTON REMEMBERS SEXUALHARASSMENT RUMORS SOON SPREAD HOWEVER WHEN A COLLEAGUE QUESTIONED MR HAMILTON ABOUT THEM HE SAYS HE RESPONDED WITH A JOKE ABOUT HIS IRRESISTIBLE CHARISMA A FEW DAYS LATER MR HAMILTON CONFRONTED HIS ACCUSER IN THE HALL AND ATTEMPTED TO BREAK THE ICE WITH A FATHERLY PAT ON HER BACK INSTEAD HE SAYS SHE WHIRLED AROUND AND YELLED DON'T EVER TOUCH ME TO SAFEGUARD YOUR JOB IN SUCH A TICKLISH SITUATION YOU SHOULD AVOID FACETOFACE CONFRONTATIONS WITH YOUR ACCUSER EXPERTS SAY THESE USUALLY TURN UGLY AND COULD DISTORT YOUR TRUE INTENTIONS REMEMBER THE DIE HAS BEEN CAST SAYS MR EANES OF PERSONNEL DECISIONS WHO HELPS COMPANIES TO INVESTIGATE SEXUALHARASSMENT CHARGES NOTHING YOU CAN SAY WILL MAKE ACCUSERS CHANGE THEIR MINDS NOW MR HAMILTON MADE ANOTHER SERIOUS MISTAKE HE FAILED TO INFORM HIS BOSS ABOUT THE ALLEGATION UNABLE TO DECIPHER THE TRUTH THE COMPANY ASKED BOTH STAFF MEMBERS TO RESIGN MR HAMILTON NOW A PARTTIME CONSULTANT SAYS HE IS STILL LOOKING FOR ANOTHER FULLTIME JOB AS SOON AS YOU LEARN YOU HAVE BEEN UNFAIRLY ACCUSED OF SEXUAL HARASSMENT YOU SHOULD INFORM YOUR SUPERIOR AND SOLICIT HIS OR HER SUPPORT SUGGESTS CHERYL HEISLER A CHICAGO CAREER COUNSELOR EXPLAIN POSSIBLE MOTIVES FOR THE CHARGE IF NECESSARY HIRE AN ATTORNEY DON'T WAIT FOR A FORMAL COMPLAINT MS HEISLER URGES BY THAT TIME IT MAY BE TOO LATE TO SAVE YOUR CAREER WHEN YOU GO INTO YOUR BOSS'S OFFICE BRING A DETAILED WRITTEN LOG AND OTHER EVIDENCE OF YOUR CASE TRY TO RECONSTRUCT RELEVANT MEETINGS AND PRIOR DISAGREEMENTS WITH YOUR ACCUSER INCLUDING ANY PERFORMANCE PROBLEMS AND TURF BATTLES COUNSELS CLIFF PALEFSKY A PLAINTIFFS ATTORNEY IN SAN FRANCISCO IF YOU WANT TO SAVE YOUR JOB DOCUMENT EVERYTHING HE SAYS SHODDY DOCUMENTATION FORCED THE PRESIDENT AND FOUNDER OF ONE NEW YORK EXECUTIVESEARCH FIRM TO SETTLE A SEXUALHARASSMENT CASE LAST YEAR SHE SAYS THAT ONE OF HER RECRUITERS SUED HER AFTER SHE HAD FIRED HIM FOR POOR PERFORMANCE THE BUSINESS OWNER RECOLLECTS THAT SHE HADN'T KEPT TRACK OF HER VERBAL WARNINGS HAD NEVER GIVEN HIM A WRITTEN REPRIMAND AND COULDN'T EVEN FIND COPIES OF HIS SLOPPY WORK SHE DECIDED TO SETTLE OUT OF COURT EVEN THOUGH HER DECISION CAUSED HER TO LOSE SOME CLIENTS AND TO MOVE TO SMALLER QUARTERS ONCE SOMEONE FORMALLY ACCUSES YOU OF SEXUAL HARASSMENT YOU SHOULD DISCUSS THE CHARGES FRANKLY WITH EVERYONE YOU KNOW AT YOUR WORKPLACE WILLARD THOMPSON SAYS THAT APPROACH KEPT HIM FROM BEING FIRED OVER FALSE SEXUALHARASSMENT CHARGES PUBLIC SERVICE CO OF COLORADO SUSPENDED MR THOMPSON A MAINTENANCE MAN FOR A MONTH BECAUSE HE ALLEGEDLY HAD VERBALLY BOTHERED A CUSTOMER'S FEMALE EMPLOYEES MR THOMPSON NOW RETIRED SAYS THAT HE NOTIFIED EVERY PUBLIC SERVICE HIGHERUP HE KNEW AND THEN RELAYED HIS DILEMMA TO HIS COLLEAGUES AS A RESULT HE SAYS BOTH SENIOR EXECUTIVES AND COWORKERS VOUCHED FOR HIS CHARACTER DURING THE COMPANY'S INTERNAL INVESTIGATION I HAD SEVERAL PEOPLE WHO WERE WILLING TO STAND UP FOR ME HE NOTES 9401120152 940112 WHO'S NEWS ENTEX INFORMATION SERVICES ENTEX INFORMATION SERVICES RYE BROOK NY ROBERT R AURAY JR 42 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PRIVATELY HELD PERSONALCOMPUTER SYSTEMS CONCERN MR AURAY HAD BEEN VICE PRESIDENT OF CUSTOMER SERVICE AND OPERATIONS PLANNING AT AMERICAN NATIONAL CAN CO A UNIT OF PECHINAY INTERNATIONAL HE SUCCEEDS BERNARD J WHITE 49 WHO LEFT THE COMPANY LAST SEPTEMBER TO PURSUE OTHER INTERESTS 9401120151 940112 WHO'S NEWS MCDONNELL DOUGLAS CORP MCDONNELL DOUGLAS CORP ST LOUIS BEVERLY B BYRON WAS ELECTED A DIRECTOR OF THIS AIRCRAFT MAKER AND DEFENSE CONTRACTOR MRS BYRON 61 YEARS OLD WAS A CONGRESSWOMAN FROM MARYLAND FROM 1978 UNTIL 1992 WHEN SHE WAS APPOINTED TO HER CURRENT POSITION BY PRESIDENT BUSH TO THE EIGHTMEMBER DEFENSE BASE CLOSURE AND REALIGNMENT COMMISSION SHE FILLS THE VACANCY CREATED BY THE DEATH OF ROSCOE ROBINSON LAST YEAR 9401120150 940112 PHILANTHROPY HOW A LITTLE PREP SCHOOL LEARNED THAT BIG MONEY TALKS BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL HIGHTSTOWN NJ THIS IS WHAT OCCURS AT A RESPECTED BUT OBSCURE PREP SCHOOL WHEN A BILLIONAIRE ALUMNUS SUDDENLY DECIDES TO GIVE HIS ALMA MATER 100 MILLION THE FACULTY EXPECTS IMMEDIATE 10000AYEAR RAISES OR AT THE VERY LEAST ONETIME 10000 BONUSES THE ADMISSIONS OFFICE BECOMES FLOODED WITH INQUIRIES AND APPLICATIONS MOSTLY FROM PROSPECTIVE STUDENTS WHO EXPECT TO GO TO THE SCHOOL FOR FREE PARENTS OF AT LEAST 10 APPLICANTS WHO RECEIVED REJECTION LETTERS EITHER FOR ADMISSION OR FINANCIAL AID DEMAND THE BILLIONAIRE'S HOME ADDRESS SO THEY CAN COMPLAIN THAT HIS MONEY ISN'T BEING SPENT WISELY SUCH IS THE FATE OF THE PEDDIE SCHOOL A PRIVATE SECONDARY BOARDING AND DAY SCHOOL WITH 482 STUDENTS SINCE PHILANTHROPIST AND PEDDIE GRADUATE WALTER H ANNENBERG DECIDED SIX MONTHS AGO TO GIVE IT THE EDUCATIONAL EQUIVALENT OF A WINNING LOTTERY TICKET WHILE MANY BOARDING SCHOOLS ARE HURTING BECAUSE OF A DECLINE IN THE NUMBER OF PROSPECTIVE STUDENTS WHO CAN AFFORD TO PAY THEIR RISING TUITIONS PEDDIE IS SITTING PRETTY AS A RESULT OF THE ANNENBERG GIFT SCHOOL OFFICIALS SAY THEY WILL BE ABLE TO BUILD A MORE DIVERSE STUDENT BODY AND ENHANCE LEARNING THE MONEY WHICH CATAPULTED PEDDIE FROM NOWHERE ON LISTS OF BOARDINGSCHOOL ENDOWMENTS TO THE TOP SEVEN ARRIVED BY WIRE LAST MONTH UNDER THE DONATION'S TERMS ONLY INTEREST NOT PRINCIPAL CAN BE SPENT SCHOOL ADMINISTRATORS HAD ALREADY DECIDED AFTER HUDDLING WITH KEY BOARD MEMBERS DURING TWO OFFCAMPUS RETREATS TO HAVE FIVE DIFFERENT MONEY MANAGERS INVEST THE GIFT THEY HOPE FOR A RETURN OF AT LEAST 5 OR 6 OR 5 MILLION TO 6 MILLION A YEAR A HEFTY ADDITION TO THE SCHOOL'S CURRENT 105 MILLION BUDGET MR ANNENBERG STIPULATED THAT 55 OF THE NEW FUNDS BE USED FOR FINANCIAL AID HOW TO SPEND THE REST SPARKED A VERITABLE AVALANCHE OF SUGGESTIONS FROM FACULTY ADMINISTRATORS AND OUTSIDERS SOME WANTED TO BUILD NEW DORMS OTHERS PROPOSED CONSTRUCTING A NEW HOCKEY RINK SQUASH COURTS A STUDENT CENTER AND AN EXPANSION OF THE DINING HALL AT THE SAME TIME SCHOOL OFFICIALS WERE INUNDATED WITH OFFERS FROM MONEY MANAGERS TO PROVIDE INVESTMENT ADVICE FROM ARCHITECTS WHO ASSUMED A CAMPUS BUILDING BOOM WAS IN THE OFFING AND FROM ARTISTS SEEKING COMMISSIONS FOR BUSTS OR PORTRAITS OF MR ANNENBERG IN THE END CAPITAL IMPROVEMENTS AND ARTWORKS WERE RULED OUT AFTER ALL THANKS LARGELY TO MORE THAN 40 MILLION IN PREVIOUS ANNENBERG GIFTS THE SCHOOL'S POSTCARDPRETTY CAMPUS ALREADY BOASTS AN ARTS CENTER A NEW 78 MILLION LIBRARY A HUGE ATHLETIC CENTER NEW DORMS AND A STATEOFTHEART COMPUTER NETWORK INSTEAD PEDDIE DECIDED TO USE 20 TO 25 OF THE INVESTMENT INCOME TO NEARLY DOUBLE THE SALARIES OF THE SCHOOL'S 72 TEACHERS AND STAFF MEMBERS OVER FIVE YEARS MR DEGRAY HOPES THAT WILL SATISFY THE SCHOOL'S EMPLOYEES WHO EARN ON AVERAGE ABOUT 25500 A YEAR AND WHO WERE ARGUING FOR RAISES BECAUSE THEIR SALARIES ARE IN THE BOTTOM THIRD IN THE RANKS OF PREP SCHOOL COMPENSATION BY 1998 HE SAYS PEDDIE'S AVERAGE SALARY SHOULD JUMP TO THE TOP QUARTER SOME FACULTY MEMBERS ARE WITHHOLDING JUDGMENT I'M GOING TO SEE WHAT SPECIFICS ARE GIVEN BEFORE I STATE WHETHER I LIKE IT OR NOT SAYS FRANK TOWNE A CHEMISTRY TEACHER WHO HAS BEEN AT PEDDIE 31 YEARS THE REST OF MR ANNENBERG'S GIFT WILL BE SPENT ON EDUCATIONAL INITIATIVES INCLUDING AN EXPERIMENTAL LONGERYEAR CURRICULUM FOR 30 SELECT SOPHOMORES THE SCHOOL ALSO HOPES TO ADD AT LEAST FOUR FACULTY MEMBERS THE INCREASE IN FINANCIAL AID WILL HAVE THE GREATEST IMPACT ON THE SCHOOL PEDDIE OFFICIALS BELIEVE LAST SCHOOL YEAR ONLY 28 OF ITS STUDENTS RECEIVED AID TOTALING ABOUT 15 MILLION NEXT YEAR THE BUDGET WILL DOUBLE AND ABOUT HALF OF ALL STUDENTS WILL BENEFIT PETER A QUINN PEDDIE'S ADMISSIONS DIRECTOR INTENDS TO DIVERSIFY THE STUDENT BODY ADMITTING MORE MINORITY CANDIDATES AS WELL AS MIDDLECLASS APPLICANTS WHO COULD NOT NORMALLY ATTEND A SCHOOL THAT COSTS BOARDERS 18900 A YEAR HE EMPHASIZES THAT HE DOESN'T WISH TO COMPETE WITH TOPTIER PREP SCHOOLS AND ONLY ACCEPT KIDS WHO GET STRAIGHT AS AND STAR IN LACROSSE AND PLAY FOUR INSTRUMENTS BUT ALSO STUDENTS WHO SHOW A LOT OF POTENTIAL THERE'S BEEN SOME ANXIETY ON THE PART OF ALUMNI AND ON THE PART OF PARENTS OF CURRENT STUDENTS WITH YOUNGER SIBLINGS THAT SUDDENLY WE'RE GOING TO BE A PLACE THAT YOU CANNOT GET INTO UNLESS YOU'RE SOME SORT OF BRAIN SURGEON HE SAYS AND THAT'S NOT WHAT WE WANT VIRTUALLY ALL PEDDIE GRADUATES GO ON TO COLLEGE WITH ABOUT 15 ATTENDING THE NATION'S TOP SCHOOLS MR QUINN WILL CERTAINLY HAVE A LARGER POOL FROM WHICH TO CHOOSE NEW STUDENTS APPLICATIONS FOR NEXT FALL DUE NO LATER THAN JAN 31 HAVE MORE THAN DOUBLED TO 260 WITH ANOTHER 40 EXPECTED THE INCREASE OFFICIALS SAY IS UNQUESTIONABLY DUE TO NEWS OF MR ANNENBERG'S GIFT THE ONLY REASON WE APPLIED WAS TO GET SOME OF THAT SCHOLARSHIP DOUGH SAYS RICH FRIEDMAN EXECUTIVE EDITOR OF BYTE MAGAZINE AND THE FATHER OF A 13YEAROLD QUITE FRANKLY I NEVER HEARD OF THE PEDDIE SCHOOL BEFORE THE GIFT MR FRIEDMAN ADDS THOUGH THAT HE HAS BEEN VERY IMPRESSED WITH THE ENTHUSIASM OF THE SCHOOL'S ADMISSIONS STAFF MR QUINN SAYS HE ISN'T WORRIED THAT SOME APPLICANTS HAVE BEEN ATTRACTED BY THE SCHOOL'S NEWFOUND LARGESS I DON'T REALLY CARE HOW THEY KNOW ABOUT US AS LONG AS WHAT THEY HEAR IS POSITIVE HE SAYS NOT SURPRISINGLY THE 85YEAROLD MR ANNENBERG A C STUDENT WHO GRADUATED FROM PEDDIE IN 1927 HAS BECOME A HERO ON CAMPUS PEDDIE HELD A THANKS WALT DAY TO HONOR THE FORMER PUBLISHER AND US AMBASSADOR LAST OCTOBER HIS WORDS STRIVE FOR THE HIGHEST QUALITY OF CITIZENSHIP APPEAR AT THE ENTRANCE TO THE ANNENBERG LIBRARY IN THE ANNENBERG BUILDING MR ANNENBERG WHO RECENTLY ANNOUNCED HE WAS ALSO DONATING 500 MILLION TO REFORM PUBLIC EDUCATION HAS BEEN GIVING MONEY TO PEDDIE SINCE THE DAY HE GRADUATED WHEN HE CONTRIBUTED 17000 FOR A NEW TRACK ASKED IF MORE DONATIONS ARE ANTICIPATED MR DEGRAY REPLIED OBVIOUSLY WE DON'T EXPECT MORE OR I DON'T BUT WE WOULDN'T TURN IT DOWN ADDED ASSISTANT HEAD PENNEY RIEGELMAN 9401120149 940112 LEISURE & ARTS TELEVISION PRINT REPORTER BREAKS INTO TV BRIEFLY BY CHRISTI HARLAN AT SOME AUCTIONS THEY RAFFLE OFF WHOLE DAYS WITH CELEBRITIES CORKY SHERWOOD ON MURPHY BROWN JAN 3 1994 AT THE RISK OF FUELING EVEN MORE CYNICISM ABOUT JOURNALISTS I WANT YOU TO PICTURE THIS IT WAS THE 20TH ANNIVERSARY OF THE WATERGATE SCANDAL A HIGH POINT FOR FIRST AMENDMENT ADVOCATES IF THERE EVER WAS ONE AT THAT VERY MOMENT A YEAR AGO NOVEMBER THE SOCIETY OF PROFESSIONAL JOURNALISTS WAS HOLDING ITS ANNUAL CONVENTION AND HOPING TO RAISE MONEY WITH THE AUCTION OF SOME HISTORIC ITEMS THE NIXON RESIGNS FRONT PAGE OF THE WASHINGTON POST AUTOGRAPHED BY BEN BRADLEE AND A FIRST EDITION OF ALL THE PRESIDENT'S MEN AUTOGRAPHED BY BOB WOODWARD AND CARL BERNSTEIN HIGHQUALITY JOURNALISTIC MEMORABILIA IN OTHER WORDS SHOULD HAVE BEEN THE BIGBUCK ITEMS AT THIS AUCTION BUT THE BIGBUCK JOURNALISTS A MERE HANDFUL OF COURSE WERE SITTING ON THEIR WALLETS IT TURNS OUT THAT THEY WERE WAITING TO BID ON A TRUE HIGH POINT OF JOURNALISM A CAMEO APPEARANCE ON MURPHY BROWN THE SIXYEAROLD TELEVISION SITCOM THAT HAS PLACED CANDICE BERGEN AMONG THE RANKS OF THE MOST RESPECTED REAL OR VIRTUALLY REAL JOURNALISTS IN THE COUNTRY WATERGATE MEMENTOS MIGHT AS WELL HAVE BEEN HOLIDAY INN BAR NAPKINS TO THIS CROWD THE FIRST TWO BIDS TOPPED THE HIGHEST OFFERS FOR BRADLEE AND WOODWARD AND BERNSTEIN THE BID JUMPED TO 1000 2000 I DROPPED OUT AT 2500 3000 3500 SOLD FOR 4000 TO RUTH ANN LEACH A COLUMNIST FOR THE NASHVILLE BANNER YOU CAN'T BUY PUBLICITY LIKE THIS WAIT A MINUTE I JUST DID MARTY CRANE ON MURPHY BROWN JAN 3 1994 IN THE YEAR AFTER THE AUCTION MS LEACH AND THE SOCIETY OF PROFESSIONAL JOURNALISTS GOT MORE PUBLICITY FOR THE MURPHY BROWN BID THAN ANY STORY SHE EVER WROTE OR ANY PUBLICACCESS BATTLE THE SOCIETY EVER FOUGHT THE NEWS MADE THE ASSOCIATED PRESS WIRES CNN THE DALLAS MORNING NEWS REAL JOURNALIST TO APPEAR WITH ACTRESS PLAYING JOURNALIST I WAS ASTOUNDED AT THE BROUHAHA AND I'M THE ONE WHO HAD ARRANGED WITH THE SHOW TO HAVE THE CAMEO ROLE DONATED WHY WOULD REAL JOURNALISTS GO BANANAS AND EVEN SHELL OUT 4000 TO BE ON A TV SHOW MY THEORY IS THAT MOST JOURNALISTS CAN BE COUNTED ON TO LIKE THREE THINGS THEIR BYLINES SEEING THEMSELVES ON TV AND SEEING ACTORS PORTRAY JOURNALISTS ON TV FOR A JOURNALIST LANDING A MURPHY BROWN GUEST SHOT IS LIKE HITTING A GRAND SLAM IN THE MEDIA LEAGUE SOFTBALL TOURNAMENT MAYBE IT'S BECAUSE HOLLYWOOD HISTORICALLY HAS MADE US HACKS MORE ROMANTIC AND GLAMOROUS THAN WE REALLY ARE THINK OF THE GREAT ONSCREEN JOURNALISTS TRACY AND HEPBURN IN WOMAN OF THE YEAR LOU GRANT AND MARY RICHARDS ON THE MARY TYLER MOORE SHOW LOIS LANE AND CLARK KENT IN SUPERMAN RUTH ANN LEACH AND ME ON MURPHY BROWN FASCINATING PROVOCATIVE AND EMINENTLY WATCHABLE MURPHY BROWN QUOTING TV GUIDE ABOUT HERSELF JAN 3 1994 WHEN THE PRODUCERS OF MURPHY BROWN FINALLY SETTLED ON A DATE FOR MS LEACH'S DEBUT THEY TOLD HER SHE COULD BRING A GUEST SHE MADE IT INTO MY PERSONAL JOURNALISM HALL OF FAME BY INVITING ME ON ACCOUNT OF MY BEING AUCTION CHAIRMAN THINKING UP THE IDEA OF A MURPHY BROWN CAMEO AND AS SHE SAID WANTING IT SO BAD EVEN IF I DID WIMP OUT WHEN THE BIDDING PASSED 2500 I ACCEPTED THE INVITATION WITH THE COOLNESS BEFITTING A PROFESSIONAL PRINT JOURNALIST I CANCELED THE FOURTH DAY OF A LONG PRECHRISTMAS WEEKEND WITH MY FAMILY I CASHED IN FREQUENTFLIER MILES I'D BEEN SAVING FOR A TRIP TO EUROPE WITH A FRIEND I FLEW THE REDEYE FROM WASHINGTON TO LOS ANGELES I TRIED TO SLEEP BUT ONLY MANAGED TO ENSURE THAT SOME CHIROPRACTOR'S KID WILL MAKE IT THROUGH COLLEGE WE WERE ALLOWED ON THE SET AT WARNER BROTHERS AT 10 AM SHORTLY BEFORE REHEARSALS BEGAN FOR FILMING THAT NIGHT SEEING THE CAST DO THEIR BIT ON THE SET OF FYI WAS LIKE WATCHING REAL REPORTERS IN ACTION WELLDRESSED GOODLOOKING PEOPLE ENGAGING IN WITTY REPARTEE WHILE PRODUCING GREAT JOURNALISM AND I AM MARIE OF ROMANIA MOST REPORTERS MISS POLYESTER IF THEY DON'T STILL OWN AND WEAR SOME GOODLOOKING REPORTERS WORK FOR TELEVISION THE REST OF US TRY TO DO ALL INTERVIEWS BY TELEPHONE NEWSROOM CONVERSATIONS WILL PRODUCE THE OCCASIONAL CLEVER RIPOSTE BUT SUSTAINED REPORTER HUMOR IS MORE LIKELY TO MEAN 15 MINUTES OF FARMANIMAL NOISES ON DEADLINE NEVERTHELESS THE MURPHY BROWN CAST DOES A PRETTY DARNED GOOD JOB OF IMITATING JOURNALISTS ESPECIALLY WHEN AN ACTOR BLOWS A LINE AND INVOKES ANOTHER FARM PRODUCT NOW THAT'S JOURNALISM HAVE YOU NO SHAME AS A MEMBER OF THE MEDIA YOU HAVE A CHANCE TO UPLIFT THE PUBLIC JIM DIAL TO MARTY CRANE MURPHY BROWN JAN 3 1994 WHILE WAITING FOR THE REHEARSAL OF OUR SCENE MS LEACH AND I INTERVIEWED EVERYONE WHO COULD TALK THE PRODUCTION CREW SECURITY GUARDS PAID EXTRAS WINNERS OF OTHER AUCTIONS EACH OTHER EVERYONE BUT THE CAST WHEN IT CAME TO THE ACTORS THESE TWO LONGTIME JOURNALISTS WERE BOTH STARSTRUCK AND DUMBSTRUCK THE EPISODE APPROPRIATELY REVOLVED AROUND A CHARITY AUCTION AND THE HOWARD STERNSTYLE SHOCK JOCK WHO PAYS 10000 TO SPEND THE DAY AND HAVE DINNER WITH MURPHY BROWN MS LEACH AND I WERE CAST AS RESTAURANT PATRONS IN THE DINNER SCENEALSO APPROPRIATE BECAUSE JOURNALISTS VALUE FREE MEALS ALMOST AS MUCH AS THEIR BYLINES OUR PARTS WERE SO SMALL THAT NONE OF US RESTAURANT PATRONS EVEN THE PAID PROFESSIONALS WERE CALLED EXTRAS WE WERE BACKGROUND OR ATMOSPHERE SUBJECT TO SUCH INSPIRATIONAL DIRECTIONS AS OK BACKGROUND MOVE THE FILMING OF OUR SCENE WENT WITHOUT A HITCH EXCEPT FOR THOSE FEW PANICKY MINUTES WHEN I COULDN'T DISLODGE MY FORK FROM A POTATO CROQUETTE WHICH HAD TURNED INTO LIBRARY PASTE UNDER THE STUDIO LIGHTS BUT NO ONE YELLED CUT AND THE TERROR IN MY EYES IS BARELY NOTICEABLE IN THE FINISHED PRODUCT AS A MATTER OF FACT UNLESS YOU WERE REALLY WATCHING FOR US LAST WEEK NEITHER MS LEACH NOR I WAS PARTICULARLY NOTICEABLE IN THE FINISHED PRODUCT I KNOW LOTS OF PEOPLE WHO WATCHED THE ENTIRE EPISODE AND NEVER RECOGNIZED MY FRIZZY HAIR STICKING OUT BEYOND CANDICE BERGEN'S FOREHEAD THAT'S THE WAY IT SHOULD HAVE BEEN AFTER ALL I'M A PROFESSIONAL I KNOW WHAT BACKGROUND MEANS MS HARLAN IS A REPORTER IN THE JOURNAL'S WASHINGTON BUREAU 9401120148 940112 TECHNOLOGY & ENVIRONMENT FDA APPROVES P&G SYNTEX PAIN RELIEVER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO AND SYNTEX CORP WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET A NONPRESCRIPTION PAIN RELIEVER BASED ON THE PRESCRIPTION DRUGS NAPROSYN AND ANAPROX THIS MARKS ONE OF THE FEW TIMES THE FDA HAS OVERRULED AN ADVISORY COMMITTEE IN JUNE TWO FDA ADVISORY COMMITTEES MEETING JOINTLY RECOMMENDED AGAINST APPROVING THE MARKETING OF A NONPRESCRIPTION FORM OF THE DRUGS IN ISSUING ITS APPROVAL YESTERDAY THE FDA SAID IT ADDRESSED THE ADVISORY COMMITTEES' CONCERNS BY ASKING P&G AND SYNTEX TO LOWER DAILY DOSAGE LEVELS INCREASE THE RECOMMENDED TIME BETWEEN PILLS AND INCLUDE LABEL WARNINGS FOR CHILDREN AND ELDERLY USERS THE NEW PAIN RELIEVER CALLED ALEVE WILL CHALLENGE ESTABLISHED ANALGESIC BRANDS SUCH AS JOHNSON & JOHNSON'S TYLENOL AMERICAN HOME PRODUCTS CORP'S ADVIL AND UPJOHN CO'S MOTRIN IB TYLENOL CONTAINS ACETAMINOPHEN AND ADVIL AND MOTRIN CONTAIN IBUPROFEN ALEVE WILL BE THE FIRST NONPRESCRIPTION PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT TO ENTER THE APPROXIMATELY 23 BILLION MARKET SINCE THE FDA APPROVED IBUPROFEN IN 1984 IT WILL BE AVAILABLE IN THE SPRING P&G WHICH IS BASED IN CINCINNATI AND SYNTEX OF PALO ALTO CALIF FORMED A 5050 JOINT VENTURE IN 1988 TO MAKE AND MARKET THE PRODUCT ALEVE WILL CONTAIN 200 MILLIGRAMS OF NAPROXEN AND 20 MILLIGRAMS OF SODIUM NAPROXEN IS THE MAIN INGREDIENT IN SYNTEX'S NAPROSYN THE NATION'S TOPSELLING PRESCRIPTION NONSTEROIDAL ANTIINFLAMMATORY PAIN RELIEVER WHICH IS USED PRIMARILY TO TREAT ARTHRITIS SYMPTOMS ANAPROX ANOTHER SYNTEX PRESCRIPTION PAIN RELIEVER CONTAINS NAPROXEN SODIUM ANALYSTS SAID FDA APPROVAL GIVES SYNTEX A NEEDED BOOST AT A TIME WHEN SALES OF ITS PRESCRIPTION DRUGS ARE SLUGGISH AND ITS STOCK HAS TAKEN A BEATING HOWEVER JAMES P KEENEY AN ANALYST WITH MABON SECURITIES CORP SAID THE PRODUCT WON'T BOOST SYNTEX'S EARNINGS UNTIL FISCAL 1996 AT THE EARLIEST APPROVAL IS ALSO A BOOST TO P&G WHICH HAS BEEN TRYING TO ENTER THE ANALGESICS MARKET FOR YEARS TO SUPPLEMENT ITS LINEUP OF OVERTHECOUNTER PRODUCTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING P&G STOCK FELL 375 CENTS TO 5850 AND SYNTEX ROSE 375 CENTS TO CLOSE AT 16375 ALEVE'S LABELS WILL RECOMMEND THE DRUG FOR THE TEMPORARY RELIEF IN ADULTS AND CHILDREN AGE 12 AND OVER OF PAIN RELATED TO THE COMMON COLD HEADACHES TOOTHACHES BACKACHES MUSCLE ACHES MINOR ARTHRITIS AND MENSTRUAL CRAMPS AND FOR FEVER REDUCTION THIS BROAD POSITIONING WILL HELP IT GAIN USERS ALTHOUGH THE ANALGESIC MARKET IS VERY CROWDED SAID MR KEENEY THE ANALYST I DON'T THINK IT WILL BE A RUNAWAY SUCCESS BUT THEY MIGHT GET A RESPECTABLE 10 TO 20 MARKET SHARE EDWIN L ARTZT CHAIRMAN OF P&G SAID THE OVERTHECOUNTER OPPORTUNITY FOR THIS DRUG IS SIGNIFICANT BECAUSE NAPROSYN'S TOTAL ANNUAL SALES ARE FOUR TIMES THE TOTAL SALES OF IBUPROFEN BEFORE IT WAS APPROVED AS A NONPRESCRIPTION DRUG MR ARTZT SAID INITIAL ADVERTISEMENTS WILL APPEAL TO THREE GROUPS SEEKING TEMPORARY PAIN RELIEF THOSE WHO SUFFER FROM HEADACHES PEOPLE WITH MUSCLE ACHES AND PAINS FROM SPORTS AND STRENUOUS LABOR AND THOSE FEELING MINOR ARTHRITIS PAIN THIS BRAND WILL BE COMPETING REALLY FRONTALLY WITH THE MAJOR BRANDS IN THE ANALGESIC MARKET ADVIL TYLENOL AND ASPIRIN MR ARTZT SAID 9401120147 940112 BUSINESS BRIEF BARNETT BANKS AND SUNTRUST REPORT STRONG GAINS IN 4THQUARTER EARNINGS TWO SOUTHEASTERN BANKS BARNETT BANKS INC AND SUNTRUST BANKS INC REPORTED STRONG GAINS IN FOURTHQUARTER EARNINGS BOTH INSTITUTIONS ATTRIBUTED THE INCREASES TO IMPROVEMENTS IN OPERATING EFFICIENCY AND LOAN QUALITY SUNTRUST BASED IN ATLANTA SAID STRONG GROWTH IN FEE INCOME ALSO CONTRIBUTED TO THE EARNINGS GAIN IMPROVEMENTS AT BOTH BANKS WERE OFFSET SOMEWHAT BY THE CONTINUED TIGHTENING OF NETINTEREST MARGINS FOR THE FOURTH QUARTER BARNETT BASED IN JACKSONVILLE FLA REPORTED THAT EARNINGS JUMPED TO 1133 MILLION OR 111 A SHARE FROM 62 MILLION OR TWO CENTS A SHARE A YEAR EARLIER THE 1992 FIGURES INCLUDE A 674 MILLION RESTRUCTURING CHARGE RELATED TO AN ACQUISITION FOR THE YEAR BARNETT REPORTED RECORD EARNINGS OF 421 MILLION OR 410 A SHARE THAT COMPARES WITH 1992 NET INCOME OF 2077 MILLION OR 197 A SHARE INCLUDING THE RESTRUCTURING CHARGE BOOSTING THE BANK'S PERFORMANCE IN 1993 WAS ITS BIG REDUCTION IN CREDIT COSTS NONPERFORMING ASSETS FELL 46 TO 4583 MILLION FROM 8433 MILLION A YEAR EARLIER SUNTRUST IN THE FOURTH QUARTER REPORTED THAT NET INCOME ROSE 33 TO 1192 MILLION OR 97 CENTS A SHARE FROM A RESTATED 895 MILLION OR 70 CENTS A SHARE SUNTRUST'S NET INCOME FOR 1993 ROSE 17 TO 4737 MILLION OR 377 A SHARE FROM 4044 MILLION OR 313 A SHARE A YEAR EARLIER THE INCREASE WAS FUELED BY GROWTH IN BOTH FEE INCOME AND LOANS THE BANK'S 1993 TRUST INCOME FOR INSTANCE ROSE 93 TO 247 MILLION FROM 226 MILLION IN 1992 LOANS INCREASED 77 TO 253 BILLION FROM 235 BILLION IN 1992 MOUNTING PRESSURE THROUGHOUT THE INDUSTRY ON NETINTEREST MARGINS THE DIFFERENCE BETWEEN WHAT A BANK EARNS ON LOANS AND INVESTMENTS AND WHAT IT PAYS FOR DEPOSITS WAS EVIDENT AT BOTH BANKS BARNETT SAW ITS YIELD IN THE FOURTH QUARTER DECLINE TO 498 FROM 509 IN THE THIRD QUARTER OF 1993 AT SUNTRUST THE NETINTEREST MARGIN DROPPED TO 460 IN THE FOURTH QUARTER FROM 476 IN THE PRECEDING PERIOD DURING 1993 BARNETT'S MARGIN DECLINED TO 507 FROM 511 IN 1992 WHILE SUNTRUST'S MARGIN DROPPED TO 480 FROM 510 THE YEAR EARLIER 9401120146 940112 POLITICS & POLICY DEFENDING FOOTBALL AND FANCY CARS POLITICIANS DECRY EFFORT TO LIMIT USE OF CAMPAIGN MONEY BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN JOHN BREAUX'S CAMPAIGN COMMITTEE DOES MORE THAN MAKE SURE THE LOUISIANA DEMOCRAT GETS REELECTED IT ALSO MAKES SURE HE'S WELLFED LAST YEAR ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS THE CAMPAIGN PICKED UP THE TAB AT A NUMBER OF WASHINGTON'S MORE POSH RESTAURANTS 78 AT LE MISTRAL 100 AT BICE 110 AT RED SAGE AND 166 AT LA BRASSERIE THE CAMPAIGN ALSO SPENT 964 AT THE SENATE GIFT SHOP ON BIRTHDAY AND WEDDING PRESENTS ON TOP OF THAT THE CAMPAIGN PAID FOR 1050 WORTH OF NEW ORLEANS SAINTS FOOTBALL TICKETS IN THEORY IT HAS BEEN ILLEGAL SINCE 1979 FOR CANDIDATES AND MEMBERS OF CONGRESS TO USE CAMPAIGN FUNDS TO COVER PERSONAL EXPENSES BUT IN PRACTICE THE FEC AND HOUSE AND SENATE ETHICS COMMITTEES HAVE GIVEN LAWMAKERS SUCH WIDE LATITUDE IN DEFINING CAMPAIGNRELATED EXPENSES THAT MOST ANY DISBURSEMENT HAS BEEN DEEMED TO BE LEGITIMATE MEMBERS OF CONGRESS HAVE TAPPED THEIR CAMPAIGN FUNDS TO BUY FANCY CARS EXTEND BUSINESS TRIPS INTO FAMILY VACATIONS AND PURCHASE EVENING GOWNS FOR THEIR WIVES NOW THE FEC IS FINALLY LOOKING INTO CLOSING THE LID ON SUCH USES OF CAMPAIGN WAR CHESTS IT IS SCHEDULED TO HOLD A HEARING TODAY ON PROPOSED REGULATIONS THAT IN GENERAL WOULD BAR THE USE OF CAMPAIGN FUNDS FOR ANY EXPENSE THAT WOULD EXIST IRRESPECTIVE OF A CANDIDATE'S CAMPAIGN OR OFFICIAL BUSINESS AS AN OFFICEHOLDER MANY POLITICIANS ARE NOT HAPPY THERE SEEMS TO HAVE BEEN A MILD OUTBREAK OF PANIC ON CAPITOL HILL SAYS ELIZABETH HEDLUND DIRECTOR OF FEC WATCH A PROJECT OF THE NONPARTISAN CENTER FOR RESPONSIVE POLITICS FEC OFFICIALS SAY THEY HAVE GOTTEN PHONE CALLS FROM SOME CONCERNED LAWMAKERS OTHERS HAVE WRITTEN LETTERS A POLITICIAN MUST MEET AND MINGLE WITH PEOPLE FLORIDA DEMOCRATIC REP EARL HUTTO ASSERTS IN A LETTER TO THE FEC THERE IS NO BETTER WAY THAN TO ATTEND A FRIDAY NIGHT HIGHSCHOOL FOOTBALL GAME OTHERS WHO HAVE WRITTEN THE FEC TO QUESTION CERTAIN ASPECTS OF THE PROPOSED RULES INCLUDE DEMOCRATIC REP JOLENE UNSOELD OF WASHINGTON AND CALIFORNIA REPUBLICAN REP BILL THOMAS THE RANKING MINORITY MEMBER OF THE HOUSE ADMINISTRATION COMMITTEE TREVOR POTTER WHO HAS BEEN AN FEC COMMISSIONER SINCE 1992 AND TOOK OVER AS CHAIRMAN EARLIER THIS MONTH ISN'T SURPRISED AT THE PROTESTS I THINK ANY CANDIDATE WOULD LIKE TO KEEP A LOT OF DISCRETION IN HOW CAMPAIGN MONEY CAN BE SPENT SAYS MR POTTER WHO GETS CREDIT FROM FECWATCHERS SUCH AS MS HEDLUND FOR TRYING TO SHAKE THINGS UP AT AN AGENCY TRADITIONALLY VIEWED AS A TOOTHLESS TIGER UP TILL NOW THAT DISCRETION HAS BEEN VIRTUALLY UNCHALLENGED IN THE 15 YEARS THAT THE PERSONALUSE PROHIBITION HAS BEEN ON THE BOOKS THE FEC HAS NEVER PUNISHED ANYONE FOR VIOLATING IT AND THE BROAD POWER OVER HOW CAMPAIGN MONEY IS USED HAS REMAINED ONE OF LAWMAKERS' MOST PRIZED PERKS IN HANDBOOK OF CAMPAIGN SPENDING A STUDY OF HOW MONEY WAS USED IN THE 1990 CONGRESSIONAL RACES JOURNALISTS SARA FRITZ AND DWIGHT MORRIS FOUND THAT REPUBLICAN SEN TED STEVENS OF ALASKA SPENT MORE THAN 70000 IN CAMPAIGN FUNDS ON AUTOMOBILES AND MAINTENANCE FOR TWO CARS KEPT IN WASHINGTON IN ALL THEY FOUND 94 MEMBERS OF CONGRESS EITHER BOUGHT OR LEASED CARS WITH CAMPAIGN DOLLARS A 1992 REPORT BY THE CITIZENS' LOBBY COMMON CAUSE SHOWED THAT BETWEEN 1978 AND 1990 FORMER REPUBLICAN REP ROBERT DAVIS HAD HIS CAMPAIGN PAY NEARLY 225000 BETWEEN 1978 AND 1990 FOR TRAVEL LODGING MEALS VIRTUALLY EVERYTHING HE DID IN MICHIGAN HIS HOME STATE THE SAME REPORT FOUND THAT DEMOCRATIC SEN DANIEL INOUYE OF HAWAII CONSUMED 892 WORTH OF CAMPAIGN MEALS DURING VISITS TO INDONESIA AND TAIWAN WHEN CONGRESS PASSED THE PERSONALUSE LAW IT PUT IN A GRANDFATHER CLAUSE THAT ALLOWED SITTING MEMBERS OF CONGRESS TO CONVERT CAMPAIGN FUNDS TO PERSONAL USE UPON RETIREMENT MANY DID IN 1989 THE GRANDFATHER CLAUSE WAS REMOVED BUT THE REVISION WAS WRITTEN SO THAT NO LAWMAKER WAS ACTUALLY AFFECTED UNTIL LAST YEAR THE PROPOSED FEC RULES SPELL OUT A NUMBER OF AREAS THAT WOULD BE AUTOMATICALLY CONSIDERED PERSONAL USE OF CAMPAIGN FUNDS MORTGAGE RENT AND UTILITY PAYMENTS FOOD CHILD SUPPORT HEALTH CARE INSURANCE CLOTHING AND TUITION THE RULES WOULD ALSO BAN USING CAMPAIGN MONEY FOR COUNTRYCLUB DUES AS WELL AS GREENS AND TENNIS COURT FEES UNLESS THESE COSTS WERE PART OF A FUNDRAISING EVENT IN ADDITION THE PROPOSED REGULATIONS WOULD PREVENT CANDIDATES FROM PAYING SALARIES TO THEMSELVES OUT OF CAMPAIGN FUNDS AND IN WHAT WOULD BE A REVERSAL OF PREVIOUS POLICY THE RULES RAISE THE POSSIBILITY OF PREVENTING CANDIDATES FROM HAVING THEIR CAMPAIGNS RENT PORTIONS OF THEIR HOMES OR OFFICES AMONG THOSE URGING THE FEC TO GO SLOW ARE TWO LEADING CAMPAIGN ATTORNEYS REPUBLICAN JAN BARAN AND DEMOCRAT ROBERT BAUER ALTHOUGH THEY HAVE REPRESENTED CAMPAIGN COMMITTEES OF THEIR RESPECTIVE PARTIES MR BARAN SAYS HE AND MR BAUER ARE NOT REPRESENTING ANYONE IN PARTICULAR IN THIS INSTANCE IN A JOINT LETTER TO THE COMMISSION THEY ARGUE THAT PROHIBITING EXPENDITURES THAT WOULD HAVE BEEN MADE IRRESPECTIVE OF A PERSON'S CANDIDACY IS AT ONCE TOO BROAD AND TOO UNCERTAIN THEY ALSO SAY THAT ANY NEW FEC REGULATIONS SHOULD COMPORT WITH HOUSE AND SENATE ETHICS RULES WHICH CRITICS FEEL ARE LOOSER THAN WHAT THE FEC HAS PROPOSED THEIR BOTTOM LINE THE FEC SHOULD NOT IMPINGE ON THE APPROPRIATE DISCRETION OF CANDIDATES TO DETERMINE WHICH EXPENDITURES ARE CAMPAIGN RELATED BUT CRITICS SAY THIS IS PRECISELY THE NOSTRUM THAT LED TO SO MUCH ABUSE IN THE FIRST PLACE IF WE'RE GOING TO REFORM THIS SYSTEM WE HAVE TO PUT AN END TO MEMBERS OF CONGRESS LIVING OFF OF THEIR CAMPAIGN MONEY SAYS FRED WERTHEIMER PRESIDENT OF COMMON CAUSE WHAT YOU END UP HERE WITH IS SPECIALINTEREST GROUPS NOT ONLY FINANCING THE CAMPAIGNS OF MEMBERS OF CONGRESS BUT THEIR PERSONAL LIFESTYLES AS WELL NOR IS IT JUST A QUESTION OF LIFESTYLES ALSO ON THE FEC'S PROPOSED LIST OF ITEMS TO BE COUNTED AS PERSONAL USE ARE FUNERAL CREMATION AND BURIAL EXPENSES FOR DECEASED LAWMAKERS THE FEC SAYS IT IS AWARE THAT CAMPAIGN FUNDS HAVE BEEN USED TO COVER SUCH COSTS 9401120145 940112 LETTERS TO THE EDITOR CONSPIRACY TO KILL KING IT'S WORTH INVESTIGATING IN A DEC 27 MARKETPLACE REPORT ABOUT THE DEC 16 PRIME TIME LIVE ACCOUNT OF A POSSIBLE CONSPIRACY INVOLVED IN THE MURDER OF MARTIN LUTHER KING YOU SAID THAT THE STORY HAD BEEN REJECTED BY OTHER ORGANIZATIONS BECAUSE IT WAS TOO DIFFICULT TO PROVE AND THAT IT RENEWED CONCERNS WITHIN THE INDUSTRY ABOUT WHETHER UNPROVEN STORIES ARE BEING AIRED BECAUSE OF COMPETITION AMONG TV NEWSMAGAZINES THIS STORY APPEARED OF COURSE IN THE SAME EDITION IN WHICH THE JOURNAL REPORTED THE UNPROVEN STORIES ABOUT NORTH KOREA'S POSSESSION OF A NUCLEAR BOMB THE DEFENSE DEPARTMENT SAYS IT ISN'T SO AND A CHILD'S ACCUSATION OF SEXUAL MOLESTATION BY MICHAEL JACKSON MR JACKSON SAYS IT ISN'T SO I WOULD HESITATE TO SAY THAT YOU REPEATED THOSE REPORTS BECAUSE OF INCREASED COMPETITION FOR DECLINING READERSHIP BUT I WOULD LIKE TO MAKE A POINT ABOUT THE INDUSTRY CONCERN THERE HAS BEEN TALK ABOUT A CONSPIRACY TO MURDER MR KING FOR SOME TIME A LOT OF ORGANIZATIONS INCLUDING THOSE YOU QUOTE TRIED TO FIND PEOPLE WHO WOULD TALK ABOUT IT MOST FAILED WE SUCCEEDED OUR REPORTING WAS CAREFUL TO POINT OUT THE PROBLEMS IN THE STATEMENTS OF THOSE INVOLVED BUT THOSE INVOLVED WERE GIVING A FIRSTHAND ACCOUNT OF THEIR OWN ACTS THEY DID SO AT SOME RISK TO THEMSELVES FINANCIALLY AND LEGALLY PROOF OF THE STATEMENTS PROBABLY WILL HAVE TO COME THROUGH THE COURTS AS IN THE MICHAEL JACKSON CASE BUT A FIRSTHAND ACCOUNT BY A PERSON WILLING TO GO ON THE RECORD AND GIVE PLAUSIBLE DETAILS OF A MAJOR CRIME IS A NEWS STORY THAT IT WASN'T LEAKED ANONYMOUSLY IN WASHINGTON FROM AN OFFICIAL SOURCE WHO TALKED TO ALL THE PAPERS DOESN'T MAKE IT LESS SO MAYBE WE REPORTED IT BECAUSE EVEN THOSE WITH AGENDAS LIKE THE CIA MAY BE TELLING THE TRUTH AND IT'S WORTH LOOKING INTO 9401120144 940112 WHAT'S NEWS BUSINESS AND FINANCE WESTINGHOUSE ELECTRIC ANNOUNCED FOURTHQUARTER AFTERTAX CHARGES TOTALING ABOUT 906 MILLION TO CUT ITS WORK FORCE SELL BUSINESSES AND SHORE UP ITS UNDERFUNDED PENSION PLAN THE RESTRUCTURING UNDER ITS NEW CHAIRMAN MICHAEL JORDAN IS THE COMPANY'S LATEST ATTEMPT TO CLEAN UP PROBLEMS STEMMING FROM A DISASTROUS FORAY INTO FINANCIAL SERVICES AS WELL AS SLUGGISH GROWTH IN ITS POWERGENERATION AND DEFENSEELECTRONICS UNITS THE WHITE HOUSE PROPOSED EXEMPTING TELECOMMUNICATIONS COMPANIES FROM SOME STATE AND LOCAL REGULATIONS IF THEY OPERATE IN COMPETITIVE MARKETS AND SET UP VIDEO AND INFORMATION NETWORKS OPEN TO ALL PROGRAMMING TOYS R' US PLANS TO SPEND AS MUCH AS 1 BILLION TO REPURCHASE ITS SHARES OVER SEVERAL YEARS WHILE MOUNTING AN AGGRESSIVE EXPANSION DRIVE OPENING 115 TOY STORES IN 1994 SEVENTY OF THOSE STORES WILL BE IN INTERNATIONAL MARKETS THAT ARE TARGETED FOR FASTEST GROWTH SUSTAINED ECONOMIC GROWTH WILL HELP CREATE 200000 MANUFACTURING JOBS IN 1994 THE NATIONAL ASSOCIATION OF MANUFACTURERS FORECAST THE SECTOR HASN'T ADDED NEW WORKERS SINCE 1988 PEPSICO AGREED TO SELL ITS US DISTRIBUTION RIGHTS FOR STOLICHNAYA VODKA TO GRAND METROPOLITAN IN A SURPRISING MOVE LIKELY TO STEP UP COMPETITION THE MOVE COMES FOUR MONTHS AFTER SEAGRAM WON THE DISTRIBUTION RIGHTS FOR ABSOLUT AWAY FROM GRAND MET THE UAW STRUCK GM'S TRUCK PLANT IN SHREVEPORT LA IN A CLASH OVER GM'S CAMPAIGN TO BOOST PRODUCTIVITY ANALYSTS SAID THE STRIKE COULD COST GM 2 MILLION TO 3 MILLION A DAY IN ADDITION THE CAR MAKER SAID IT WILL SHUT A PARTS PLANT IN CONNECTICUT AND PUT AN OHIO FACTORY ON THREEYEAR PROBATION MERRYGOROUND SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE NATIONAL MEDICAL TOOK A 2874 MILLION WRITEDOWN IN THE QUARTER ENDED NOV 30 RELATED TO EXPECTED PLANS TO DISPOSE OF ITS PSYCHIATRIC HOSPITALS PROCTER & GAMBLE AND SYNTEX WON FDA APPROVAL OF AN OVERTHECOUNTER PAIN RELIEVER BASED ON THE PRESCRIPTION DRUGS NAPROSYN AND ANAPROX THE DRUG ALEVE WILL CHALLENGE SUCH BRANDS AS J&J'S TYLENOL AMERICAN HOME'S ADVIL AND UPJOHN'S MOTRIN A FEDERAL JUDGE REFUSED TO EXTEND THE DEADLINE FOR LIMITEDPARTNERSHIP INVESTORS TO OPT OUT OF A 120 MILLION SETTLEMENT BY PRUDENTIAL SECURITIES KODAK'S NEW CEO GEORGE FISHER SAID ITS COPIER DIVISION ISN'T FOR SALE ENDING OVER A YEAR OF SPECULATION CHEMICAL'S DARLA MOORE A MANAGING DIRECTOR WHO TURNED LENDING TO COMPANIES IN BANKRUPTCY PROTECTION INTO A BOOMING BUSINESS RESIGNED NATIONAL SEMICONDUCTOR PLANS TO UNVEIL A DATASECURITY TECHNOLOGY BASED ON A MICROCHIP THAT CAN BE PUT IN POCKETSIZED CARDS OR OTHER HARDWARE TO PROTECT COMPUTER MESSAGES THE CHICAGO BOARD OF TRADE APPEARS POISED TO LEAVE THE GLOBEX AFTERHOURS ELECTRONIC FUTURES TRADING SYSTEM AS A RIFT WIDENS WITH ITS PARTNERS THE CHICAGO MERC AND REUTERS TWO SOUTHEASTERN BANKS BARNETT AND SUNTRUST REPORTED STRONG GAINS IN FOURTHQUARTER EARNINGS ATTRIBUTING THE INCREASES TO IMPROVED OPERATING EFFICIENCY AND BETTER LOAN QUALITY THE MUNICIPAL SECURITIES RULEMAKING BOARD PLANS TO PROVIDE SURVEILLANCE REPORTS ON THE MUNIBOND MARKET TO THE SEC AND OTHER REGULATORS THE PLAN WHICH WOULD GIVE REGULATORS A NEW TOOL FOR ENFORCING SECURITIES LAW IS THE LATEST SIGN THAT THE MARKET WILL BE SUBJECT TO HEIGHTENED OVERSIGHT MELLON BANK IS OFFERING A NEW CREDIT CARD THAT PROMISES TO REFUND ALL INTEREST PAID OVER 20 YEARS THE LATEST LURE IN A BATTLE TO WIN CARD USERS BANCO ESPANOL DE CREDITO'S FORMER CHAIRMAN PLANS TO APPEAL THE CENTRAL BANK'S DE FACTO TAKEOVER OF THE BANK BUT JP MORGAN BANESTO'S INVESTMENT ADVISER SAID IT WON'T JOIN HIM BONDS LEHMAN BROTHERS TREASURY INDEX 560937 UP 784 COMMODITIES OIL 1485 A BARREL UP 18 CENTS DOW JONES FUTURES INDEX 14056 OFF 008 SPOT INDEX 12828 UP 084 DOLLAR 11240 YEN UP 015 17416 MARKS UP 0007 9401120143 940112 WHO'S NEWS USF&G CORP USF&G CORP BALTIMORE GARY C DUNTON 38 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FIELD OPERATIONS AT THE USF&G INSURANCE UNIT OF THIS INSURANCE HOLDING COMPANY MR DUNTON SUCCEEDS WARREN E COUPLAND 48 WHO LEFT THE COMPANY FOR OTHER BUSINESS OPPORTUNITIES THE COMPANY SAID 9401120142 940112 CREDIT RATINGS AIRLINE CREDIT RATINGS HAVE HIT BOTTOM MOODY'S REPORT SAYS NEW YORK WHILE US AIRLINES STILL FACE PROBLEMS OVER THE NEXT SEVERAL YEARS CREDIT RATINGS FOR THE INDUSTRY OVERALL HAVE PROBABLY BOTTOMED OUT ACCORDING TO A NEW REPORT BY MOODY'S INVESTORS SERVICE INC MOODY'S SAID THAT DESPITE IMPROVED PROFITS IT WILL TAKE MUCH OF THE REST OF THE DECADE FOR AIRLINE RATINGS TO REGAIN THE PREVIOUS CYCLICAL PEAK OF BAA2 IN THE LATE 1980S THE CURRENT INDUSTRY AVERAGE IS BA2 THE INDUSTRY'S CREDIT PROFILE WILL CONTINUE TO BE HURT BY DECLINING GROWTH IN DOMESTIC TRAFFIC AND WEAKNESS IN OVERSEAS ECONOMIES MOODY'S SAID OTHER PROBLEMS ACCORDING TO THE RATING AGENCY INCLUDE LABOR STRIFE AND SHORTHAUL FLIGHTS WHERE MAJOR AIRLINES ARE STRUGGLING AGAINST LOWCOST CARRIERS SUCH AS SOUTHWEST AIRLINES BUT MOODY'S ALSO SEES POSITIVE SIGNS IN INDUSTRY COSTCUTTING EFFORTS CUTBACKS IN AIRCRAFT DELIVERIES AND FIRMER PRICES 9401120141 940112 WHO'S NEWS GRC INTERNATIONAL INC GRC INTERNATIONAL INC VIENNA VA CHARLES HP DUELL 55 YEARS OLD WAS NAMED A DIRECTOR OF THIS DEFENSERELATED TECHNICAL SERVICES CONCERN BRINGING THE BOARD TO EIGHT MEMBERS MR DUELL IS PRESIDENT OF BOTH MIDDLETON PLACE FOUNDATION A HISTORICAL LANDMARK AND MIDDLETON INN CO BOTH LOCATED IN CHARLESTON NC 9401120140 940112 WHO'S NEWS NEORX CORP NEORX CORP SEATTLE JACK L BOWMAN 61 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICALS CONCERN THE ELECTION OF MR BOWMAN A RETIRED JOHNSON & JOHNSON GROUP CHAIRMAN INCREASES NEORX'S BOARD TO 10 MEMBERS 9401120139 940112 KODAK'S COPIER DIVISION IS NOT FOR SALE' AND WILL POST '93 PROFIT SAYS NEW CEO BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO'S NEW CHIEF EXECUTIVE OFFICER GEORGE FISHER ENDING MORE THAN A YEAR OF SPECULATION SAID THE COMPANY'S COPIER DIVISION IS NOT FOR SALE THE BUSINESS A POOR PERFORMER FOR YEARS IS EXPECTED TO REPORT PROFIT FOR 1993 THE COMPANY SAID THE UNIT COMPRISES ABOUT ONETHIRD OF KODAK'S INFORMATIONSYSTEMS DIVISION WHICH IN 1992 POSTED AN OPERATING LOSS OF 151 MILLION WHICH INCLUDES A 123 MILLION DEDUCTION FOR RESTRUCTURING COSTS MR FISHER'S INTERNAL ENDORSEMENT OF THE BUSINESS WHICH HE PERSONALLY RELAYED TO THE COPIERSALES STAFF LAST WEEK SURPRISED ANALYSTS SINCE HE TOOK OVER ON DEC 1 THE FORMER MOTOROLA INC EXECUTIVE HAS BEEN SILENT ABOUT HIS PLANS FOR KODAK'S VARIOUS BUSINESSES THERE'S BEEN AN IMPRESSION THAT COPIERS HAVE IMPROVED SAID ANALYST JACK KELLY WITH GOLDMAN SACHS BUT COMPETITOR XEROX CORP CONTINUES TO GIVE KODAK TROUBLE HE ADDED I'M JUST SURPRISED FISHER MADE A STATEMENT SO EARLY IN THE GAME KODAK'S COPIER DIVISION HOPES MR FISHER'S BACKING WILL HELP BOOST SALES WITH CUSTOMERS SOME OF WHOM HAVE WORRIED ABOUT WHETHER KODAK IN ROCHESTER NY WOULD BE AROUND TO SERVICE EQUIPMENT THE MAJOR IMPACT OF THIS IS CREDIBILITY WITH OUR CUSTOMERS SAID ED GRECO VICE PRESIDENT AND GENERAL MANAGER OF OFFICE IMAGING THE DIVISION CONTROLLING COPY PRODUCTS THIS IS COMMITMENT FROM THE CORPORATION IN MR GRECO'S OFFICE STILL HANGS A COLOR PICTURE OF KODAK'S OFFICEIMAGING BUILDING WITH A COMPUTERIZED NOT FOR SALE SIGN OUT FRONT SIMILAR SIGNS INTENDED TO SPARK A SURVIVAL MODE PAPERED THE DIVISION LAST YEAR WHEN THE FIGHT TO SAVE COPIERS HEIGHTENED AFTER FORMER KODAK CHAIRMAN AND CEO KAY WHITMORE SAID THE COMPANY WOULD SELL OR SPIN OFF PARTS OF A MAJOR BUSINESS ALTHOUGH KODAK'S CHEMICAL DIVISION WHICH WAS SPUN OFF JAN 1 WAS THE INTENDED DIVESTITURE SPECULATION CONTINUED THAT THE COPIER DIVISION WAS ON THE BLOCK MR GRECO SAID THE BUSINESS HAS BEEN HELPED BY COST CUTTING AND INVENTORY REDUCTIONS IN ADDITION KODAK'S ALLIANCE WITH COPIER GIANT CANON INC'S CANON COPIERS USA WHICH BEGAN IN JULY 1992 HAS INCREASINGLY BOOSTED SALES MR GRECO SAID 9401120138 940112 WHO'S NEWS INTERSTATE/JOHNSON LANE INC INTERSTATE/JOHNSON LANE INC CHARLOTTE NC EDWIN T BURTON WAS NAMED MANAGING DIRECTOR OF THIS REGIONAL BROKERAGE FIRM'S INVESTMENTBANKING OPERATIONS A NEW POSITION OVERSEEING BOTH ITS PUBLICFINANCE AND CORPORATEFINANCE OPERATIONS MR BURTON 51 YEARS OLD ON MONDAY IS TO ASSUME MANAGERIAL ROLES NOW HELD BY THE SEPARATE HEADS OF THE TWO OPERATIONS GEORGE WOODALL 51 HEAD OF PUBLIC FINANCE AND ALLEN ROGERS 47 HEAD OF CORPORATE FINANCE WILL REMAIN WITH THE FIRM AS SENIOR BANKERS REPORTING TO MR BURTON WHO HAS BEEN PRESIDENT OF ROTHSCHILD FINANCIAL SERVICES INC A FINANCIALSERVICES SUBSIDIARY OF ROTHSCHILD NORTH AMERICA INC 9401120137 940112 WHO'S NEWS COMPUTER PRODUCTS INC COMPUTER PRODUCTS INC BOCA RATON FLA RONALD J RITCHIE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ELECTRONICS CONCERN RESIGNED THE COMPANY SAID MR RITCHIE 53 YEARS OLD WHO WAS ALSO A BOARD MEMBER WAS UNABLE FOR PERSONAL REASONS TO MOVE PERMANENTLY TO BOSTON HEADQUARTERS OF COMPUTER PRODUCTS' LARGEST BUSINESS POWER CONVERSION MR RITCHIE WHO JOINED COMPUTER PRODUCTS IN 1992 COULDN'T BE REACHED FOR A COMMENT THE COMPANY SAID IT DOESN'T PLAN TO FILL MR RITCHIE'S POSITIONS INSTEAD DIRECTORS OF EACH BUSINESS UNIT WILL REPORT TO JOHN N LEMASTERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9401120136 940112 BANISTER UNIT'S VENTURE GETS JOB TORONTO BANISTER INC SAID A JOINT VENTURE INCLUDING BANISTER'S 50OWNED NICHOLLSRADTKE LTD UNIT WON A CONTRACT TO BUILD A COGENERATION PLANT IN WINDSOR ONTARIO FOR THE WEST WINDSOR POWER CONSORTIUM THE VALUE OF THE CONTRACT IS MORE THAN 110 MILLION CANADIAN DOLLARS US835 MILLION BANISTER A CONSTRUCTION CONCERN SAID ITS OWN SHARE WILL BE ABOUT ONEQUARTER THE PLANT WILL START UP IN 1995 AND SUPPLY POWER TO ONTARIO HYDRO ONTARIO'S POWER UTILITY 9401120135 940112 US JUDGE REFUSES TO DELAY DEADLINE IN PRUDENTIAL CASE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE REFUSED TO EXTEND THE DEADLINE FOR ENERGYLIMITEDPARTNERSHIP INVESTORS TO DECIDE WHETHER TO OPT OUT OF A 120 MILLION SETTLEMENT BY PRUDENTIAL SECURITIES INC THE DECISION BY FEDERAL JUDGE MARCEL LIVAUDAIS JR MEANS THAT 130000 INVESTORS IN A CLASSACTION CASE IN NEW ORLEANS WILL HAVE UNTIL SATURDAY TO DECIDE WHETHER TO ACCEPT PRUDENTIAL'S SETTLEMENT OFFER OR TRY TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS A FAIRNESS HEARING ON THE NEW ORLEANS SETTLEMENT IS SCHEDULED FOR JAN THE INVESTORS HAVE ACCUSED THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT OF MISLEADING THEM ON THE RISKS AND RETURNS OF ABOUT 145 BILLION IN 35 ENERGY PARTNERSHIPS MANY OF WHICH HAVE SOURED BUT SEVERAL STATES AND ATTORNEYS HAD URGED JUDGE LIVAUDAIS TO POSTPONE THE OPTOUT DATE AND FAIRNESS HEARING LAST WEEK FOR INSTANCE THE CALIFORNIA CORPORATIONS COMMISSIONER ASKED THE JUDGE TO DELAY THE HEARING FOR 90 DAYS AND ORDER THE PARTIES TO IMPROVE THE DISCLOSURE TO COMPARE THE SETTLEMENT AMOUNT THE IMPACTED INVESTORS MAY EXPECT IN THIS SETTLEMENT WITH THE AMOUNT THEY COULD BE EXPECTED TO RECEIVE UNDER THE REGULATORY ACCORD THE STATES TECHNICALLY HAD NO STANDING TO OPPOSE THE SETTLEMENT HOWEVER THAT'S BECAUSE THEY ALREADY HAD SIGNED OFF ON THE 120 MILLION SETTLEMENT UNDER WHICH EACH STATE WILL RECEIVE 500000 PEOPLE FAMILIAR WITH THE MATTER SAY THE KEY THING IS THAT THE STATES THEMSELVES HAD SETTLED AND SO WERE NOT OBJECTING TO ANY SUBSTANTIVE ASPECTS OF THE SETTLEMENT SAYS CLINTON KRISLOV AN ATTORNEY IN CHICAGO WHO REPRESENTS CLIENTS WITH CLAIMS AGAINST PRUDENTIAL IF ACCEPTED BY JUDGE LIVAUDAIS THE SETTLEMENT WOULD BRING TO ABOUT 127 BILLION OR AN AVERAGE OF 87 CENTS ON THE DOLLAR THE AMOUNT THAT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL 145 BILLION INVESTMENT THE INVESTORS ALREADY HAVE RECEIVED DISTRIBUTIONS OF MORE THAN 650 MILLION AND WILL GET AN ADDITIONAL 491 MILLION FROM THE SALE OF THE PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO A TEXAS OIL AND GAS COMPANY THIS IS THE SECOND SHOT THAT PRUDENTIAL HAS MADE IN SETTLING THE CLASSACTION CASE LAST FEBRUARY JUDGE LIVAUDAIS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF PRUDENTIAL'S ORIGINAL SETTLEMENT PROPOSAL WHICH INCLUDED ABOUT 37 MILLION IN CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM 9401120134 940112 KPMG PEAT MARWICK PURCHASE NEW YORK KPMG PEAT MARWICK SAID IT IS ACQUIRING A SMALL LOS ANGELES CONSULTING FIRM AS PART OF ITS EXPANSION INTO REGULATORY COMPLIANCE SERVICES TERMS WEREN'T DISCLOSED SMITH BANKING CONSULTANTS SPECIALIZES IN HELPING FINANCIAL INSTITUTIONS COMPLY WITH REGULATORY REQUIREMENTS SUCH AS THE COMMUNITY REINVESTMENT ACT BY PERFORMING DETAILED ANALYSES OF LENDING ACTIVITIES AND THROUGH FAIRLENDING REVIEWS KPMG PEAT MARWICK PROVIDES AUDIT TAX AND CONSULTING SERVICES IN MORE THAN 131 COUNTRIES 9401120133 940112 MARKETING BRIEF NOTED WHO'S NEWS GEORGE J KRIEGER WAS NAMED EXECUTIVE VICE PRESIDENT FOX SPORTS AT FOX BROADCASTING CO A UNIT OF NEWS CORP'S FOX INC 9401120132 940112 ALUSUISSELONZA BID ADVANCES TORONTO ALUSUISSELONZA HOLDING LTD SAID THE LAWSON FAMILY OF LONDON ONTARIO AGREED TO TENDER ITS STAKE IN LAWSON MARDON GROUP LTD TO A TAKEOVER BID BY A UNIT OF ALUSUISSE THE FAMILY HOLDS ABOUT TWO MILLION OR 164 OF THE CLASS B SHARES OF LAWSON MARDON CRAGNOTTI & PARTNERS CAPITAL INVESTMENT SA OF LUXEMBOURG ALREADY TENDERED ITS 528 VOTING CONTROL OF LAWSON MARDON A TORONTO PACKAGING CONCERN THE BID EXPIRES TOMORROW ALUSUISSE IS A SWISS MANUFACTURING CONCERN 9401120131 940112 BOARD TO PROVIDE SEC WITH DATA ON MUNI BONDS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID IT PLANS TO PROVIDE THE SECURITIES AND EXCHANGE COMMISSION AND OTHER REGULATORS WITH SURVEILLANCE REPORTS ON THE MUNICIPALBOND MARKET THE MSRB'S PLAN WHICH WOULD GIVE REGULATORS A NEW TOOL FOR ENFORCING SECURITIES LAW IS THE LATEST SIGN THAT THE MUNICIPALBOND MARKET WILL BE SUBJECT TO HEIGHTENED OVERSIGHT IN THE PERIOD AHEAD THE MSRB LAST SPRING ANNOUNCED PLANS FOR A PILOT PROGRAM TO ENHANCE TRANSPARENCY IN THE MUNICIPALBOND MARKET BY COLLECTING AND PUBLISHING DATA DAILY ON MARKET VOLUME AND PRICES OF FREQUENTLY TRADED BONDS THE PROGRAM IS DESIGNED TO GIVE INDIVIDUAL INVESTORS AND OTHER MARKET PARTICIPANTS READY ACCESS TO SUCH INFORMATION THE BOARD PROVIDED NEW DETAILS YESTERDAY AND SAID IT HOPES TO HAVE THE PROGRAM OPERATING NEXT JANUARY THE MSRB IS A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT THE COMMISSION HAS BEEN A LEADING ADVOCATE OF IMPROVING TRANSPARENCY IN ALL SECURITIES MARKETS THE BOARD SAID IT WILL USE INTERDEALER TRANSACTION DATA SUBMITTED FOR AUTOMATED COMPARISON TO PRODUCE DAILY PUBLIC REPORTS CONTAINING VOLUME AND PRICING INFORMATION AND TO PROVIDE MORE DETAILED SURVEILLANCE REPORTS FOR THE AGENCIES CHARGED WITH ENFORCING BOARD RULES THE SEC THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND BANK REGULATORS FOR BANK DEALERS THE DAILY REPORTS WOULD PROVIDE AGGREGATE DATA ABOUT MARKET VOLUME ON THE PREVIOUS BUSINESS DAY AND SPECIFIC PRICE AND VOLUME DATA ABOUT THOSE ISSUES THAT WERE TRADED FOUR OR MORE TIMES THE REPORTS WOULDN'T IDENTIFY THE DEALERS INITIALLY THE SURVEILLANCE REPORTS WOULD CONTAIN THE DETAILS OF INTERDEALER TRANSACTIONS INCLUDING THE IDENTITY OF THE DEALERS INVOLVED IN THE TRANSACTIONS AND PRICES OF INDIVIDUAL TRANSACTIONS THE MSRB SAID IT STRESSED THAT THE SURVEILLANCE REPORTS WOULD BE USED EXCLUSIVELY FOR MARKET SURVEILLANCE AND ENFORCEMENT PURPOSES AND WOULDN'T BE MADE PUBLIC THE MSRB SAID IT PLANS TO ADOPT A RULE LATER THIS YEAR REQUIRING DEALERS TO REPORT INTERDEALER TRANSACTIONS TO THE BOARD FOR THE PURPOSE OF PROVIDING PUBLIC ACCESS TO INFORMATION ON TRANSACTION VOLUME AND PRICES THE BOARD'S AGENT FOR RECEIVING DATA FROM DEALERS WOULD BE THE NATIONAL SECURITIES CLEARING CORP A CLEARING CORPORATION REGISTERED WITH THE SEC THE BOARD SAID THE INITIATIVE IS DESIGNED SPECIFICALLY TO MINIMIZE THE COSTS TO DEALERS OF REPORTING TRADES AS THE INDUSTRY AND THE BOARD OBTAIN EXPERIENCE WITH TRANSPARENCY THROUGH THE PILOT PROGRAM THE BOARD WILL SEEK COSTEFFECTIVE MEANS TO FURTHER INCREASE TRANSPARENCY WITH THE ULTIMATE GOAL BEING THE DISSEMINATION OF COMPREHENSIVE CONTEMPORANEOUS PRICING DATA IT SAID THE MSRB SAID IT WOULD ENSURE THAT INTERESTED PARTIES ARE PROVIDED ACCESS TO THE DAILY REPORT ON A NONDISCRIMINATORY BASIS AND IN A MANNER THAT WOULD NOT CONFER SPECIAL OR UNFAIR ECONOMIC BENEFIT TO ANY PERSON 9401120130 940112 NATIONAL MEDICAL TAKES A WRITEDOWN OF 2874 MILLION TIED TO HOSPITAL SALES BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL MEDICAL ENTERPRISES INC TOOK A 2874 MILLION WRITEDOWN IN ITS SECOND QUARTER ENDED NOV 30 RELATED TO PREVIOUSLY ANNOUNCED PLANS TO DISPOSE OF ITS PSYCHIATRIC HOSPITALS THE SANTA MONICA CALIF COMPANY MONTHS AGO SAID IT EXPECTED TO TAKE A SIZABLE CHARGE AGAINST EARNINGS IN THE PERIOD BUT IT DIDN'T INDICATE HOW LARGE IT WOULD BE EVEN YESTERDAY NATIONAL MEDICAL DIDN'T BREAK OUT THE EXACT SIZE OF THE ONETIME CHARGE FOR THE ACTUAL SALE OF ITS TROUBLED PSYCHIATRIC FACILITIES CHRISTI SULZBACH SENIOR VICE PRESIDENT SAID THAT THE 2874 MILLION FIGURE DESCRIBED BY THE COMPANY AS A LOSS FROM DISCONTINUED OPERATIONS INCLUDES ANTICIPATED LOSSES TO OPERATE THOSE HOSPITALS UNTIL THE DIVESTITURE PLAN IS COMPLETED MS SULZBACH SAID NATIONAL MEDICAL HOPES TO SELL ITS PSYCHIATRIC PROPERTIES IN THE NEXT FEW MONTHS ANALYSTS DESCRIBED YESTERDAY'S ANNOUNCEMENT AS AN EFFORT TO HEAD OFF PIECEMEAL WRITEDOWNS OR CONTINUING CHARGES THAT COULD BE A DRAG ON EARNINGS THEY TOOK AN EXTRAORDINARILY CONSERVATIVE APPROACH SAID MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INC THEY WROTE OFF EVERYTHING INCLUDING THE KITCHEN SINK SHE SAID TO MAKE SURE THEY WOULDN'T HAVE TO DO IT AGAIN IN ADDITION TO THE WRITEOFF ON THE SALE ITSELF THE COMPANY SAID THE 2874 MILLION FIGURE INCLUDES CERTAIN SEVERANCE COSTS LEGAL COSTS OTHER COSTS STEMMING FROM THE TRANSACTION AND A NEARLY 12 MILLION LOSS FROM OPERATING THE PSYCHIATRIC SITES IN THE SECOND QUARTER OVERALL FOR THE QUARTER NATIONAL MEDICAL YESTERDAY REPORTED A NET LOSS OF 2262 MILLION OR 136 A SHARE COMPARED WITH NET INCOME OF 524 MILLION OR 32 CENTS A SHARE IN THE YEARAGO QUARTER EARNINGS FROM CONTINUING OPERATIONS TRAILED YEAREARLIER FIGURES BY ABOUT 20 DESPITE WHAT THE COMPANY SAID WERE IMPROVED PROFIT MARGINS AND ENHANCED COST CONTROLS AT ITS CORE ACUTECARE HOSPITALS FOR THE SIX MONTHS ENDED NOV 30 THE COMPANY POSTED A NET LOSS OF NEARLY 270 MILLION OR 161 A SHARE COMPARED WITH NET INCOME OF 103 MILLION OR 62 CENTS A SHARE A YEAR AGO THE LATEST SIXMONTH RESULTS INCLUDE A 441 MILLION LOSS FROM DISCONTINUED OPERATIONS AND A 601 MILLION GAIN FROM ACCOUNTING CHANGES THE YEAREARLIER FIGURES INCLUDE A 254 MILLION LOSS FROM DISCONTINUED OPERATIONS THE HEALTHCARE COMPANY HAS BEEN REELING UNDER WIDESPREAD CHARGES OF BILLING FRAUD AND MISTREATMENT OF PATIENTS AT ITS PSYCHIATRIC FACILITIES IN OCTOBER IT SUSPENDED DIVIDENDS ON COMMON STOCK AND ADDED 250 MILLION TO A PRETAX RESERVE TO SETTLE PENDING LITIGATION BUT THOSE ESTIMATES DON'T INCLUDE PROVISIONS FOR PAYMENTS RELATED TO VARIOUS STATE AND FEDERAL INVESTIGATIONS AND ALONG WITH YESTERDAY'S QUARTERLY EARNINGS REPORT CHAIRMAN JEFFREY BARBAKOW SAID THAT THE FINANCIAL IMPACT OF THE COMPANY'S RECENT SALE OF ITS REHABILITATION HOSPITALS WON'T BE SEEN UNTIL RESULTS ARE REPORTED FOR THE CURRENT QUARTER NATIONAL MEDICAL STOCK CLOSED YESTERDAY AT 1525 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401120129 940112 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY RICHARD W BARKER THE 45YEAROLD HEAD OF MCKINSEY & CO'S EUROPEAN HEALTHCARE PRACTICE WAS NAMED TO THE NEW POST OF PRESIDENT OF THE HEALTHCARE INDUSTRIES RESTRUCTURING GROUP FOR THE IBM CONSULTING GROUP 9401120128 940112 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB DURING A HOLIDAY TRIP TO THE MIDWEST IT WAS POSSIBLE TO FILL UP A GAS TANK FOR THE PLEASANT PRICE OF 85 CENTS A GALLON AND LISTEN TO RELATIVES HAPPILY SWAPPING STORIES ABOUT PAYING A MERE 75 CENTS DAYS EARLIER SO THIS IS A GOOD TIME TO LOOK BACK AT THE MYTHS PERPETRATED LAST SUMMER ABOUT THE DEVASTATING IMPACT THE NEW 43CENTAGALLON GASOLINE TAX WOULD HAVE ON THE NATION'S ECONOMY THE FACTS ARE THAT THE MEMBERS OF CONGRESS WHO MADE THOSE DIRE PREDICTIONS WERE WRONG THAT GASOLINE PRICES ARE LOWER NOW THAN BEFORE THE TAX PASSED THAT THIS DEVELOPMENT WASN'T A TOTAL SURPRISE AND THAT A GOLDEN OPPORTUNITY TO MORE SERIOUSLY ADDRESS BOTH THE DEFICIT AND ENERGY POLICY WAS FRITTERED AWAY FOR THOSE WHOSE MEMORIES HAVE SLIPPED HERE'S A QUICK RECAP LAST YEAR OPENED WITH MUCH WAILING AND GNASHING OF TEETH ABOUT A FEDERAL BUDGET DEFICIT THAT WAS AT 300 BILLION A YEAR AND CLIMBING TOWARD 400 BILLION IN RESPONSE PRESIDENT CLINTON PRESENTED A DEFICITCUTTING BILL IN WHICH HE DITCHED SOME CAMPAIGN PROMISES IN ORDER TO ATTACK THE RED INK THE CENTERPIECE WAS A BROADBASED ENERGY TAX THE INFAMOUS BTU TAX THAT WAS TO RAISE 72 BILLION OVER FIVE YEARS THE BTU TAX WAS INSTANTLY UNPOPULAR AND THE SENATE KILLED IT BUT HAVING PIOUSLY PROCLAIMED THE EVILS OF THE BUDGET DEFICIT SENATORS COULDN'T JUST LEAVE A 72 BILLION HOLE SO THE FALLBACK BECAME A 43CENTAGALLON GASOLINE TAX WHICH WOULD RAISE 24 BILLION OVER FIVE YEARS THE GAS TAX PASSED THOUGH AT TIMES THE CONGRESSIONAL DEBATE SUGGESTED A GUN WAS BEING HELD TO THE HEAD OF THE ECONOMY IT WILL HAVE A RIPPLE EFFECT THROUGHOUT OUR ECONOMY DECLARED WISCONSIN DEMOCRAT HERB KOHL IT WILL AFFECT THE TRUCKING INDUSTRY AND PRICES THAT PEOPLE PAY AND JOBS IT WILL AFFECT THE AIRLINE INDUSTRY AND WHAT PEOPLE PAY FOR TICKETS AS WELL AS JOBS IT WILL HAVE A REAL NEGATIVE EFFECT ON THE ECONOMY ECHOED REPUBLICAN FRANK MURKOWSKI OF ALASKA THIS TAX IS GOING TO STEAL AMERICAN JOBS AND MAKE US LESS COMPETITIVE OVERSEAS THE REALITY SIX MONTHS LATER IS THAT AMERICAN JOBS ARE BEING LOST BUT THEY'RE BEING LOST IN THE OIL PATCH BECAUSE ENERGY PRICES ARE SO LOW AN AMERICAN AUTOMOBILE ASSOCIATION SURVEY SHOWS THAT THE AVERAGE PRICE OF A GALLON OF REGULAR UNLEADED GASOLINE IN MIDDECEMBER AFTER THE GASOLINE TAX WAS PUT INTO EFFECT WAS 109 A GALLON THREE CENTS LESS THAN AT THE TIME OF THE SENATE DEBATE THE MOST ACCURATE PREDICTION IT TURNS OUT CAME FROM LOUISIANA DEMOCRAT JOHN BREAUX WHO DECLARED THAT IN INFLATIONADJUSTED TERMS GASOLINE WILL BE CHEAPER THAN IT WAS IN 1990 CHEAPER THAN IT WAS IN 1985 CHEAPER THAN IT WAS IN 1980 1975 1970 1965 AND YES IT WILL BE EVEN CHEAPER WITH THE TAX THAN IT WAS IN REAL TERMS IN 1920 THIS IS HAPPENING BECAUSE WORLD OIL PRICES ARE DROPPING THROUGH THE FLOOR AND AMERICANS ARE GOBBLING UP CHEAP IMPORTED CRUDE OIL IS SELLING FOR BELOW 15 A BARREL 10 A BARREL LESS THAN IT DID THREE YEARS AGO DURING THE IRAQI OCCUPATION OF KUWAIT THROUGH THE FIRST 11 MONTHS OF 1993 THE US IMPORTED AN ESTIMATED 85 MILLION BARRELS OF THIS CHEAP OIL A DAY UP FROM AN AVERAGE OF 79 MILLION BARRELS A DAY A YEAR EARLIER AND KEEP IN MIND THAT THIS FLOOD OF CHEAP OIL HAS DEVELOPED BEFORE IRAQ'S BIG OIL FIELDS ARE REOPENED TO THE WORLD ONE DIDN'T HAVE TO BE CLAIRVOYANT TO SEE THIS SITUATION COMING IF LAWMAKERS WERE TRULY AS CONCERNED ABOUT THE DEFICIT AS THEY CLAIMED THEY COULD HAVE PASSED A GAS TAX TWICE AS BIG AND DOUBLED THE DENT PUT INTO THE DEFICIT AND MOTORISTS STILL WOULDN'T BE PAYING A SIGNIFICANTLY DIFFERENT PRICE FOR GASOLINE NOW THAN THEY WERE BEFOREHAND MORE IMPORTANT SLIDING OIL PRICES GAVE AMERICA A RARE AND MISSED OPPORTUNITY LAST YEAR TO CONDUCT A CALM DEBATE ABOUT ITS OVERALL ENERGY POLICY AND WHETHER IT REALLY WANTS TO CONTINUE BINGING ON IMPORTED OIL OR INSTEAD START PAYING MORE ATTENTION TO LONGTERM DOMESTIC ENERGY SOURCES THIS ISN'T TO SAY A GASOLINE TAX IS A GREAT THING GAS TAXES ARE IN FACT A LITTLE NASTY REGRESSIVE AND UNEVEN IN REGIONAL IMPACT CANDIDATE BILL CLINTON WHO LATER PUSHED THE GAS TAX SAID IT HIMSELF IN HIS CAMPAIGN WHEN HE DECLARED THAT HE OPPOSED A BACKBREAKING FEDERAL GAS TAX BUT DEFICIT REDUCTION REQUIRES DOING SOMETHING NASTY SOMEWHERE PARTICULARLY TELLING MIDDLECLASS AMERICANS THEY WILL HAVE TO EITHER ACCEPT SMALLER VERSIONS OF THE ENTITLEMENT PROGRAMS THEY'VE GROWN TO EXPECT OR TO PAY MORE FOR THEM THE OTHER OPTION IS TO LEAVE MORE BILLS TO BE PAID BY THE NEXT GENERATION OF AMERICANS A CHOICE THAT WOULD BE IRRESPONSIBLE AND PAINFUL IN ITS OWN WAY IF LAWMAKERS BELIEVE THEIR OWN DEFICIT RHETORIC A PRETTY BIG IF THEN THEY BLEW A BIG CHANCE TO DO MORE ABOUT IT LAST SUMMER 9401120127 940112 WHO'S NEWS GENERAL INSTRUMENT NAMES JA BLANCHARD TO DEVELOPMENT POST CHICAGO GENERAL INSTRUMENT CORP A SUPPLIER OF EQUIPMENT TO THE CABLETELEVISION INDUSTRY NAMED A FORMER SALES EXECUTIVE FROM AMERICAN TELEPHONE & TELEGRAPH CO TO ITS MANAGEMENT TEAM JA BLANCHARD III 51 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT ACTIVITIES A NEW POSITION MR BLANCHARD WAS FORMERLY SENIOR VICE PRESIDENT OF THE BUSINESS SALES DIVISION OF AT&T HEAD OF THE NATIONAL BUSINESS SALES FORCE HE TOOK EARLY RETIREMENT IN 1991 AFTER 25 YEARS MOST RECENTLY HE HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HARBRIDGE MERCHANT SERVICES A CREDITCARD PROCESSING COMPANY IN ADDITION CHARLES T DICKSON WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR DICKSON 39 SUCCEEDS RICHARD S FRIEDLAND 43 WHO HAD REMAINED CFO ON AN INTERIM BASIS AFTER BEING NAMED GENERAL INSTRUMENT'S PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR MR DICKSON A 10YEAR VETERAN OF MCI COMMUNICATIONS CORP MOST RECENTLY WAS VICE PRESIDENT FINANCE AND ADMINISTRATION AT MCI WHERE GENERAL INSTRUMENT'S CHAIRMAN DANIEL F AKERSON HAD BEEN PRESIDENT BEFORE HE JOINED GENERAL INSTRUMENT LAST AUGUST 9401120126 940112 CD YIELDS CHANGED LITTLE IN LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ALSO REMAINED STEADY AT 446 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS FELL TO 312 FROM 317 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 448 FROM 444 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 OR MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE FELL TO 279 FROM 28 ON FIVEYEAR JUMBOS THE AVERAGE FELL TO 466 FROM 468 BANXQUOTE SAID 9401120125 940112 WHO'S NEWS PHILLIPS PETROLEUM PICKS ALLEN AS CHIEF BARTLESVILLE OKLA PHILLIPS PETROLEUM CO AS EXPECTED NAMED WW ALLEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE MAY 1 MR ALLEN 57 YEARS OLD IS THE OIL COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER HE WILL SUCCEED CHAIRMAN AND CHIEF EXECUTIVE CJ PETE SILAS 61 WHO RETIRES IN APRIL SUCCEEDING MR ALLEN AS PRESIDENT AND CHIEF OPERATING OFFICER WILL BE THE COMPANY'S CHIEF FINANCIAL OFFICER JJ MULVA 47 MR MULVA WHO WILL RETAIN HIS CURRENT POSITION WAS ALSO NAMED EXECUTIVE VICE PRESIDENT EFFECTIVE IMMEDIATELY IN ANOTHER APPOINTMENT JL WHITMIRE 53 FORMERLY SENIOR VICE PRESIDENT WORLDWIDE EXPLORATION AND PRODUCTION WAS PROMOTED TO EXECUTIVE VICE PRESIDENT EFFECTIVE IMMEDIATELY BOTH MESSRS MULVA AND WHITMIRE WERE ELECTED TO THE BOARD INCREASING THE SIZE TO 15 9401120124 940112 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE OPERATOR OF THE TUNNEL BENEATH THE ENGLISH CHANNEL ANNOUNCED ITS FARES FOR LE SHUTTLE THE TRAIN SERVICE FOR TRANSPORTING VEHICLES WITH PASSENGERS BETWEEN BRITAIN AND FRANCE STARTING MAY 8 PRICES PER CAR NO MATTER HOW MANY PASSENGERS RANGE SEASONALLY BETWEEN 330 AND 465 ROUND TRIP EUROTUNNEL AN ANGLOFRENCH CONSORTIUM THAT BUILT THE SOCALLED CHUNNEL FOR 1493 BILLION SET AN INTRODUCTORY 185 FARE FOR JUNE AND JULY TICKETS GO ON SALE TODAY THROUGH TRAVEL AGENTS THE FARES WERE FAR HIGHER THAN EXPECTED TO BE COMPETITIVE WITH FERRY PRICES BETWEEN 185 AND 345 EUROTUNNEL IS BETTING TRAVELERS WILL PAY MORE FOR THE HIGHSPEED 30MINUTE TRIP IN THE 31MILE CHUNNEL UNAFFECTED BY WEATHER THAN FOR SEA CROSSINGS OF AT LEAST 80 MINUTES EUROTUNNEL SAID IT WOULDN'T ENGAGE IN A PRICE WAR IF FERRY OPERATORS CUT THEIR FARES EUROTUNNEL WILL BEGIN OPERATING A FREIGHT SERVICE IN MARCH STARTING SEPT 5 LE SHUTTLE WILL TRANSPORT BUSES LIGHT COMMERCIAL VEHICLES TRAILERS AND CAMPERS UZBEKISTAN AND KAZAKHSTAN AGREED TO FORM A COMMON MARKET THROUGH THE YEAR 2000 AND TO START COORDINATING ECONOMIC POLICIES NEXT YEAR NEXT MONTH TARIFFS BETWEEN THE NEIGHBORING CENTRAL ASIAN COUNTRIES WILL BE ABOLISHED AND BORDER CUSTOMS ELIMINATED ALLOWING FREE MOVEMENT OF GOODS SERVICES CAPITAL AND LABOR THE TWO FORMER SOVIET REPUBLICS WITH A COMBINED POPULATION OF 39 MILLION SAID THEY CAN SATISFY MOST OF EACH OTHER'S TRADE NEEDS KAZAKHSTAN IS RICH IN ENERGY AND AGRICULTURE UZBEKISTAN IN COTTON PRODUCTION AND GOLD BILATERAL TRADE LAST YEAR TOTALED ABOUT 500 MILLION THAILAND'S CABINET APPROVED A FINANCIAL LIBERALIZATION THAT IMMEDIATELY RELAXES CURBS ON FOREIGNEXCHANGE TRANSFERS AND ALLOWS FOREIGN OFFSHORE BANKS TO OPEN BRANCHES OUTSIDE BANGKOK THE PACKAGE ALSO ALLOWS THAI FINANCE COMPANIES TO SEPARATE FINANCIAL AND SECURITIES TRADING OPERATIONS THE RULES ARE AIMED PARTLY AT EXPANDING RURAL FIRMS' ACCESS TO CREDIT AND FINANCING FOR DEVELOPMENT PROJECTS SOME FOREIGN BANKERS SAW EXPANSION OPPORTUNITIES BUT OTHERS WERE UNIMPRESSED BECAUSE RETAIL BANKING IS STILL RESTRICTED WESTERN GERMANY'S CHEMICAL WORKERS ACCEPTED A SMALL PAY BOOST IN RETURN FOR VAGUE VOWS TO PRESERVE JOBS IN THE AILING INDUSTRY THE PACT THE FIRST THIS YEAR FOR A MAJOR GERMAN INDUSTRY COULD SET A PATTERN FOR OTHER WAGE TALKS UNDER WAY POLITICIANS SAID THE AGREEMENT ACKNOWLEDGES GERMANY'S RECESSIONARY WOES AND MAY HELP DISMANTLE RIGID RULES THAT ARE HURTING INDUSTRIAL COMPETITIVENESS THE IG CHEMIE UNION WITH 700000 MEMBERS ACCEPTED A PAY FREEZE THROUGH NEXT JANUARY THEN WAGES WILL RISE 2 ANNUAL INFLATION A MONTH AGO RAN AT 36 WORKWEEKS NOW 375 HOURS MAY RANGE FROM 35 TO 40 HOURS LESSENING OVERTIME OUTLAYS LAST YEAR 350 MILLION CHINESE BOUGHT LIFE INSURANCE AND 100 MILLION PEOPLE BOUGHT FAMILY PROPERTY COVERAGE REPRESENTING 35 INCREASES FROM A YEAR EARLIER THE STATERUN PEOPLE'S INSURANCE CO OF CHINA SAID THE ENTERPRISE HAS A 90 MARKET SHARE AND ITS 1993 PREMIUM INCOME JUMPED 36 TO 573 BILLION FROM 1992 THE GOVERNMENT WHICH SET UP THE STATECONTROLLED INDUSTRY IN 1982 HAS MOVED CAUTIOUSLY TO OPEN IT TO FOREIGN FIRMS SAYING IT WANTS THE BUSINESS TO DEVELOP SLOWLY NORTH KOREA SEEKING TO ATTRACT FOREIGN INVESTMENT TO HELP ITS STRUGGLING ECONOMY UNVEILED LABOR REGULATIONS FOR FOREIGNFUNDED COMPANIES OPERATING IN THE COMMUNIST STATE WORKERS WILL BE PROVIDED BY A NORTH KOREAN LABORSERVICE AGENCY THE RULES SET MINIMUM PAY LEVELS FOR A 48HOUR WORKWEEK AND EXTRA PAY FOR OVERNIGHT SHIFTS CAP OVERTIME AT 48 HOURS A MONTH AND PROVIDE FOR PAY RAISES BASED ON PRODUCTIVITY AND QUALIFICATIONS FOREIGNFUNDED COMPANIES MUST PAY FEES INTO A SOCIAL SECURITY FUND FOR WORKERS IN 1993 WESTERN EUROPE'S AUTO INDUSTRY HAD ITS WORST YEAR SINCE WORLD WAR II AS NEW PASSENGERCAR REGISTRATIONS IN 17 COUNTRIES PLUMMETED 15 TO 115 MILLION UNITS FROM 135 MILLION IN 1992 LAST MONTH ALONE THE AUTO MARKET CRASHED 196 TO 783570 UNITS FROM A YEAR EARLIER WHEN MEASURES SUCH AS TAX INCENTIVES SKEWED COMPARISONS ONLY THE BRITISH MARKET RECOVERING FROM SEVERELY DEPRESSED LEVELS AFTER THREE YEARS OF RECESSION IMPROVED LAST YEAR RISING 116 FOR THIS YEAR THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION EXPECTS FURTHER DECLINES AS ECONOMIES EXCEPT BRITAIN STAGNATE OR SHRINK THIS ASSUMES PERSISTENT PAINFUL BUSINESS CONDITIONS AND JOB LOSSES UNLESS THE AUTO INDUSTRY AND GOVERNMENTS CUSHION ATTEMPTS TO IMPROVE PRODUCTIVITY THROUGH LAYOFFS THAT CUT BUYING POWER AND CAUSE MORE ECONOMIC ILLS THE ASSOCIATION URGED EUROPEAN GOVERNMENTS TO STAND TOUGH ON PREVENTING FURTHER MARKETSHARE GAINS BY JAPANESE AUTO MAKERS ON THE CONTINENT 9401120123 940112 BUSINESS BRIEFS MICROTEL FRANCHISE & DEVELOPMENT CORP SAID IT HAS REPURCHASED 50000 OF ITS COMMON SHARES AT BETWEEN 250 AND 3 A SHARE GTE CORP'S GTE SPACENET UNIT RECEIVED A MULTIMILLION DOLLAR CONTRACT TO PROVIDE AMERICATEL CORP WITH TELEPORT FACILITIES IN MIAMI TO OFFER VOICE AND DATA SERVICES BETWEEN THE US AND LATIN AMERICA TERMS WEREN'T DISCLOSED CAMDEN PROPERTY TRUST ACQUIRED AN 185ACRE SITE IN AUSTIN TEXAS FOR ABOUT 178 MILLION AND PLANS TO DEVELOP A 398UNIT APARTMENT COMPLEX THERE HICKS MUSE & CO DALLAS SAID CHANCELLOR COMMUNICATIONS CORP COMPLETED THE PURCHASE OF RADIO STATIONS KFBKAM AND KGBYFM IN SACRAMENTO CALIF FOR ABOUT 48 MILLION 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 9401120122 940112 LAW MONEYLAUNDERING CONVICTIONS GROW HARDER IN DECISION AFFECTING DRUG CASES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN ANOTHER LEGAL SETBACK FOR FEDERAL ANTIDRUG EFFORTS THE SUPREME COURT MADE IT HARDER FOR FEDERAL PROSECUTORS TO PROVE CASES ALLEGING A COMMON TYPE OF MONEYLAUNDERING THE HIGH COURT RULED 54 THAT PEOPLE CAN BE CONVICTED OF EVADING A REQUIREMENT THAT LARGE CASH TRANSACTIONS BE REPORTED TO THE GOVERNMENT ONLY IF PROSECUTORS DEMONSTRATE THAT THE DEFENDANTS KNEW THEY WERE COMMITTING A CRIME THE MAJORITY REJECTED THE JUSTICE DEPARTMENT'S CONTENTION THAT DEFENDANTS MAY BE FOUND GUILTY EVEN IF THEY DIDN'T REALIZE THAT IT IS ILLEGAL TO BREAK UP CASH DEPOSITS TO AVOID TRIGGERING A CURRENCYREPORTING RULE YESTERDAY'S DECISION INVOLVED DEFENDANTS WHO WERE GAMBLERS IT IS THE LATEST IN A SERIES OF SUPREME COURT CASES THAT HAVE PLACED RESTRAINTS ON FEDERAL EFFORTS TO ATTACK DRUG TRAFFICKING AND OTHER CRIME BY CONFISCATING OR MAKING IT DIFFICULT TO CONCEAL ILLICIT PROFITS OTHER RECENT DECISIONS HAVE IMPOSED LIMITS ON GOVERNMENT SEIZURE OF ASSETS SUCH AS REAL ESTATE THE HIGH COURT RULING WAS A VICTORY FOR AN OREGON COUPLE WALDEMAR AND LORETTA RATZLAF WHO GOT INTO TROUBLE AFTER THEY RAN UP A BLACKJACK DEBT OF 160000 AT A LICENSED CASINO IN RENO NEV THE RATZLAFS PROPOSED TO PAY IN CASH THE CASINO SAID THAT LIKE A BANK IT WAS OBLIGATED TO REPORT CASH TRANSACTIONS EXCEEDING 10000 TO FEDERAL AUTHORITIES THE RATZLAFS THEN BOUGHT CASHIER'S CHECKS AT VARIOUS BANKS FOR LESS THAN 10000 EACH AND DELIVERED THEM TO THE CASINO A MANEUVER DESIGNED NOT TO TRIGGER THE REPORTING RULE PROSECUTORS SUGGESTED THAT THE COUPLE'S GOAL WAS TO AVOID AN AUDIT THAT WOULD SHOW THEY HAD EVADED TAXES ON SEPARATE GAMBLING INCOME BUT SUCH CHARGES WEREN'T FILED AT TRIAL THE JUDGE INSTRUCTED THE JURY THAT THE RATZLAFS COULD BE CONVICTED OF ILLEGALLY STRUCTURING THE CASHIERCHECK PURCHASES EVEN IF THEY DIDN'T KNOW THAT A 1986 FEDERAL LAW MADE SUCH EVASION A CRIME THE RATZLAFS WERE FOUND GUILTY AND THE FEDERAL APPEALS COURT IN SAN FRANCISCO UPHELD THE VERDICT THE JUSTICE DEPARTMENT DEFENDED THE CONVICTIONS SAYING THEY COULD PROPERLY BE BASED ON THE RATZLAFS' ADMISSION THAT THEY WERE AWARE OF THE REPORTING RULE AND TRIED TO AVOID TRIGGERING IT BUT JUSTICE RUTH BADER GINSBURG STRESSED THAT WHILE EVASION OF THE RULE MAY RAISE SOME SUSPICIONS IT ISN'T INEVITABLY NEFARIOUS INNOCENT PEOPLE MAY WANT ONLY TO AVOID AN INTRUSIVE AUDIT SHE SAID JOINING THE MAJORITY WERE JUSTICES JOHN PAUL STEVENS ANTONIN SCALIA ANTHONY KENNEDY AND DAVID SOUTER JOINING THE BLACKMUN DISSENT WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR AND CLARENCE THOMAS RATZLAF VS US 9401120121 940112 TECHNOLOGY & ENVIRONMENT NATIONAL SEMICONDUCTOR SEEKS TO PROTECT SECURITY OF PCS WITH CARDSIZED DEVICES BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL SEMICONDUCTOR CORP IS MOUNTING AN EFFORT TO POPULARIZE CREDITCARDSIZED DEVICES THAT USE CODES TO PROTECT COMPUTER MESSAGES AND TRANSACTIONS FROM CROOKS AND EAVESDROPPERS THE SEMICONDUCTOR MAKER WILL UNVEIL TODAY A DATASECURITY TECHNOLOGY BASED ON A MICROCHIP THAT CAN BE PLACED IN POCKETSIZED CARDS OR IN OTHER HARDWARE THE CHIP INCLUDES MATHEMATICAL FORMULAS THAT ENCRYPT COMPUTER DATA TO PROTECT PRIVACY AND THAT VERIFY USERS' IDENTITIES FOR FINANCIAL TRANSACTIONS OR TO ALLOW ACCESS TO DATA AND COMPUTER NETWORKS A CARD WITH THE CHIP WOULD PLUG INTO A PERSONAL COMPUTER AND TAKE THE PLACE OF A PASSWORD NATIONAL SEMICONDUCTOR SANTA CLARA CALIF INTENDS TO WORK WITH RSA DATA SECURITY INC A CLOSELY HELD MAKER OF ENCRYPTION SOFTWARE IN REDWOOD CITY CALIF TO SET NEW TECHNICAL STANDARDS FOR SUCH SECURITY TOKEN DEVICES IF ADOPTED PCS AND PORTABLE COMMUNICATIONS DEVICES MIGHT BE USED WITH TOKENS TO ALLOW USERS TO PROTECT THE PRIVACY OF THEIR ELECTRONIC MAIL AND TO BUY GOODS ON THEIR MACHINES IN ADDITION NATIONAL SEMICONDUCTOR HOPES ITS SECURITY CHIPS WILL BE USED TO METER TRANSACTIONS BILLING USERS FOR RETRIEVING NEWS ARTICLES FROM A STORAGE DISK FOR EXAMPLE OR FOR CALLING UP COMPUTERIZED MOVIES FROM A TELEVISION DECODER METERING AND THE WHOLE CONCEPT OF ELECTRONIC COMMERCE IS GOING TO BE AN AWESOMELY LARGE OPPORTUNITY SAID WALT CURTIS VICE PRESIDENT OF NATIONAL SEMICONDUCTOR'S STRATEGIC BUSINESS UNIT OTHERS ARE LIKELY TO PROPOSE RIVAL STANDARDS IN THE SAME FIELD ENCRYPTION A TECHNIQUE ORIGINALLY USED TO PROTECT CLASSIFIED GOVERNMENT DATA IS ALREADY BEING USED IN SOME FASHION BY NEARLY EVERY MAJOR COMPUTER VENDOR APPLE COMPUTER INC LOTUS DEVELOPMENT CORP AND MICROSOFT CORP FOR EXAMPLE ALREADY LICENSE RSA ENCRYPTION SOFTWARE TO ADD DATA SECURITY FEATURES TO SOFTWARE THEY SELL HOWEVER TOKENS ARE LESS VULNERABLE THAN ENCRYPTION SOFTWARE TO UNSCRUPULOUS HACKERS AND HAVE LONG BEEN USED AT SECRET GOVERNMENT FACILITIES NATIONAL SEMICONDUCTOR'S CHIP WHICH CAN USE RSA'S ENCRYPTION FORMULA OR A GOVERNMENTPROPOSED STANDARD CALLED SKIPJACK HAS AN UNUSUAL DESIGN THAT AUTOMATICALLY ERASES ALL DATA IT CONTAINS IF ANYONE TRIES TO DISASSEMBLE IT OR TO USE ELECTRONIC INSTRUMENTS TO READ ITS CONTENTS THE COMPANY EXPECTS TO LINE UP SOFTWARE COMPANIES AND OTHER PARTNERS TO START SELLING SUCH TOKENS AT A RETAIL PRICE OF AROUND 150 COMPARED WITH SEVERAL HUNDRED DOLLARS FOR GOVERNMENTISSUE TECHNOLOGY ANOTHER COMPANY WITH SIMILAR COMMERCIAL PLANS IS SEMAPHORE COMMUNICATIONS CORP A XEROX CORP DATASECURITY SUBSIDIARY THAT HAS BEEN TALKING TO CHIP MAKERS ABOUT EMBEDDING ITS TECHNOLOGY IN CARDTYPE TOKENS WILLIAM FERGUSON A SEMAPHORE VICE PRESIDENT SAID HE THINKS NATIONAL SEMICONDUCTOR'S TECHNOLOGY IS STILL TOO EXPENSIVE ESPECIALLY WHEN ONE INCLUDES THE PRICE OF TOKENREADING DEVICES THAT MUST BE ATTACHED TO COMPUTERS NEVERTHELESS MR FERGUSON PREDICTS LOWPRICED TOKENS WILL EVENTUALLY BECOME COMMONPLACE FOR PROTECTING DATA AFTER A FEW YEARS OF EXPERIMENTATION WITH DIFFERENT TECHNOLOGIES I THINK IT'S GOING TO BECOME THE STANDARD FOR DUE CARE 9401120120 940112 DOW 4000 VIGOROUS BULL MARKET SEEMS POISED TO KEEP CONFOUNDING THE BEARS IT BOTH FUELS AND REFLECTS THE RECOVERY THE HOPE IS A GOLDILOCKS ECONOMY PESSIMISTS BRACE FOR A FALL BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL IT DOESN'T GET ANY BETTER THAN THIS A STEADILY GROWING ECONOMY LOW INTEREST RATES AND LOW INFLATION AND CORPORATE COFFERS FILLING WITH CASH ARE ALL COMBINING TO GIVE STOCK PRICES A HEADY BOOST AND IF THE BULLS ARE RIGHT AND THEY HAVE BEEN FOR THE PAST THREE YEARS THE GOOD TIMES WILL KEEP ON ROLLING RIGHT PAST 4000 ON THE DOW JONES INDUSTRIAL AVERAGE I'M EXPECTING THE MARKET TO RALLY TO 4200 IN THE NEXT THREE MONTHS SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA AND MR HAYS'S PREDICTIONS PALE BESIDE THE EBULLIENT FORECAST OF EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE DEUTSCHE BANK SECURITIES CORP MY MANTRA IS 5000 ON THE DOW BY 1995 OF COURSE THE CLIMB MAY WELL BE INTERRUPTED THE HISTORY OF THE CURRENT BULL MARKET LOOKS MORE LIKE A STAIRCASE THAN A STRAIGHT LINE WITH SHARP FAST GAINS FOLLOWED BY PERIODS OF STAGNATION INDEED YESTERDAY THE MARKET DROPPED 152 POINTS PRIMARILY AS A RESULT OF PROFITTAKING AFTER FOUR CONSECUTIVE RECORD DAYS THERE IS EVEN THE POSSIBILITY THAT SOME UNFORESEEN EVENT COULD TRIGGER A DOWNTURN IN PRICES PERHAPS BY AS MUCH AS 15 SOME ANALYSTS FIGURE THAT BY SHEER DINT OF ITS AGE AT 39 MONTHS ONE OF THE OLDEST BULL MARKETS EVER THIS ONE IS OVERDUE FOR A DIP BUT FEW BELIEVE THE RALLY IS AT ITS END THE THREEYEAROLD BULL MARKET THAT HAS CARRIED THE INDUSTRIAL AVERAGE UP 63 SINCE OCTOBER 1990 HAS BEEN DRIVEN PRINCIPALLY BY AN UNPRECEDENTED DECLINE IN INTEREST RATES SHORTTERM RATES HAVE DROPPED DURING THAT PERIOD TO 3 FROM 74 LONGTERM RATES HOVERING AT JUST ABOVE 6 ARE AT THE LOWEST LEVEL SINCE THE TREASURY BEGAN ISSUING 30YEAR BONDS IN 1977 THOSE DECLINES HAVE UNLEASHED IMMENSE FINANCIAL FORCES EVEN CONSERVATIVE INVESTORS HAVE FLED LOWYIELDING BANK DEPOSITS FOR THE GREATER RETURNS OF STOCKS MILLIONS OF HOMEOWNERS HAVE REFINANCED THEIR DEBTS AND GAINED EXTRA SPENDING POWER AND CORPORATIONS ARE ENJOYING THE LOWEST BORROWING COSTS IN DECADES THE DROP IN LONGTERM INTEREST RATES IS PROBABLY THE MOST IMPORTANT FACTOR IN THE CURRENT BULL MARKET SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS IT ISN'T JUST CHEAP MONEY THAT HAS PROPELLED THE STOCK MARKET HIGHER THE MASSIVE RESTRUCTURINGS THAT MANY COMPANIES HAVE UNDERGONE SINCE THE LAST RECESSION HAVE BEEN PAYING OFF TOO LEANER COMPANIES ARE PRODUCING MORE WITH LESS FATTENING THEIR BOTTOM LINES EVEN THOUGH THE ECONOMY HAD BEEN GROWING ANEMICALLY AT LEAST UNTIL THE END OF LAST YEAR EVEN ONCEBELEAGUERED GENERAL MOTORS CORP IS LOOKING RELATIVELY PROSPEROUS THESE DAYS YESTERDAY GM'S STOCK HIT AN ALLTIME HIGH OF 5950 A SHARE ADJUSTED FOR SPLITS NOW MANY ECONOMISTS BELIEVE THE COMBINATION OF LOW RATES AND RESTRUCTURINGS IS POISED TO FUEL A POWERFUL RECOVERY AS THE ECONOMY GAINS MOMENTUM THEY SAY COMPANIES WILL SEE SALES AND REVENUES RISING PLUMPING UP PROFITS THOSE PROFITS IN TURN WILL BE THE LINCHPIN IN A FURTHER SUSTAINED CLIMB IN STOCK PRICES THE FUNDAMENTALS OF THE US ECONOMY LOOK HEALTHIER THAN THEY HAVE IN YEARS SAYS ALAN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS INC THE INVESTMENT BANKING UNIT OF AMERICAN EXPRESS CO THE COMBINATION OF CORPORATE EFFICIENCIES AND RISING SALES WILL FUEL THE NEXT STAGE OF THE BULL MARKET THAT WILL GO ON FOR A LONG LONG TIME EVEN IF THE DOW DOES TAKE A SUDDEN NOSE DIVE IT WON'T BE A LASTING ONE HE AND OTHERS INSIST A MARKET CORRECTION WOULD GIVE ALL THE BEARS WHO HAVE BEEN ON THE SIDELINES FOR THE PAST FEW YEARS A CHANCE TO SAY I TOLD YOU SO THEY WOULD THEN PROBABLY MOVE INTO THE MARKET PROVIDING A FLOOR UNDER ANY DECLINE ECONOMISTS SAY THERE'S THE MOOD AND THE MONEY OUT THERE TO BRING IN SIDELINE CASH IF THERE'S A CORRECTION SAYS ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS THE GREATEST DANGER TO THE ROSY STOCKMARKET OUTLOOK IS TOO MUCH OF A GOOD THING AN ECONOMY THAT GROWS AT A TORRID PACE IF THAT HAPPENS THE FEDERAL RESERVE WOULD ALMOST CERTAINLY CLAMP DOWN ON THE NATION'S MONEY SUPPLY TO HEAD OFF INFLATION LESS LIKELY BUT EQUALLY DANGEROUS IS A SLUMPING ECONOMY THAT SLIPS BACK TOWARD RECESSION BURDENED BY HIGHER TAXES OR DECLINING CONSUMER CONFIDENCE WHAT INVESTORS ARE HOPING FOR IS A GOLDILOCKS ECONOMY NOT TOO STRONG AND NOT TOO WEAK BUT JUST RIGHT IT'S A DELICATE BALANCING ACT BUT THE ECONOMY SEEMS TO BE DOING A GOOD JOB OF WALKING THAT FINE LINE SAYS MR SOHN OF NORWEST THE RALLY IN THE DOW INDUSTRIALS SINCE THE BEGINNING OF THE YEAR IS BEING DRIVEN BY TWO THINGS EXPECTATIONS OF STRONG FOURTHQUARTER PROFITS IN COMING WEEKS AND RAPIDLY RECEDING WORRIES THAT THE FED WILL BEGIN FORCING INTEREST RATES HIGHER ANALYSTS PEG ECONOMIC GROWTH IN THE JUSTENDED QUARTER AT 42 THE FASTEST SINCE THE FOURTH QUARTER OF 1992 ACCORDING TO BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZ NEWSLETTER THAT TRACKS ECONOMIC FORECASTS THE NATION'S AUTO MAKERS FOR INSTANCE ENJOYED HEALTHY SALES AS 1993 DREW TO A CLOSE ANALYSTS EXPECT GM FORD MOTOR CO AND CHRYSLER CORP TO POST ROBUST GAINS FOR THE PERIOD AND THEIR STOCK PRICES HAVE REFLECTED THOSE EXPECTATIONS THE AUTO MAKERS' PROSPERITY HAS ALREADY HAD A RIPPLE EFFECT THE STEELMAKERS THAT FURNISH THE RAW MATERIALS FOR CARS AND THE RAILROADS THAT HAUL THE FINISHED AUTOS FROM FACTORIES TO MARKETS ARE BOTH EXPECTED TO PROFIT USXUS STEEL GROUP A MAJOR STEELMAKER HAS SEEN ITS STOCK PRICE GAIN NEARLY 20 IN THE PAST THREE MONTHS AND CSX CORP A RAILROAD THAT CARRIES HUNDREDS OF THOUSANDS OF GM CARS HAS GAINED 11 IN THE SAME PERIOD FEW ECONOMISTS EXPECT GROWTH TO CONTINUE AT THE VIGOROUS RATE OF LATE 1993 NOR DO THEY WANT IT TO THE SPURT OF GROWTH LAST QUARTER HAD SPARKED FEARS THAT THE INFLATION BOGEYMAN WAS ABOUT TO EMERGE AFTER YEARS OF HIBERNATION ANXIOUS BOND INVESTORS WHO FEAR NOTHING AS MUCH AS THEY DO INFLATION BEGAN DEMANDING HIGHER AND HIGHER INTEREST RATES TO OFFSET EXPECTED INFLATION NOW THOSE FEARS ARE SUBSIDING AND INTEREST RATES ARE RETURNING TO THEIR PREVIOUS LEVELS PEOPLE GOT CARRIED AWAY WITH INFLATION EXPECTATIONS IN THE LAST FEW MONTHS SAYS ABBY JOSEPH COHEN A STRATEGIST AT GOLDMAN SACHS & CO ON THE BASIS OF A ROBUST FOURTH QUARTER PEOPLE WERE EXTRAPOLATING STRONG GROWTH THIS YEAR AND RAISING UNWARRANTED FEARS ABOUT INFLATION SURPRISINGLY ENOUGH LONGTIME BEARS MOST OF WHOM HAVE BADLY LAGGED THE PERFORMANCE OF THEIR MORE OPTIMISTIC COLLEAGUES AREN'T DISCOURAGED BY THE MARKET'S RECENT RUN TO NEW RECORDS THEY JUST ARGUE THAT THE MARKET IS THAT MUCH CLOSER NOW TO THE INEVITABLE FALL THAT THEY HAVE BEEN PREDICTING FOR YEARS IT'S A COMPULSIVE GAMBLING MANIA OUT THERE SAYS CHARLES A ALLMON A MONEY MANAGER AND VETERAN BEAR WITH MORE THAN 70 OF HIS PORTFOLIO IN CASH THE GAMBLING REHABILITATION CENTERS WILL HAVE A LOT OF CANDIDATES IN THE END THE CRUX OF THE BEAR CASE HAS BEEN THAT STOCK PRICES HAVE GOTTEN FAR AHEAD OF CORPORATE AND ECONOMIC FUNDAMENTALS THE BEARS' FAVORITE ARGUMENTS ARE THAT STOCK PRICES AVERAGING 24 TIMES PERSHARE EARNINGS ARE DANGEROUSLY HIGH AND THAT THE AMOUNT OF MONEY A STOCKHOLDER EARNS FROM CORPORATE DIVIDENDS 27 AT CURRENT RATES IS DANGEROUSLY LOW THE PESSIMISTS ARGUE THAT THOSE INDICATORS ALWAYS RETURN TO THEIR HISTORIC AVERAGES STOCK PRICES AT ABOUT 14 TIMES EARNINGS AND A DIVIDEND YIELD OF ABOUT 44 ACCORDING TO FINANCIAL SERVICES FIRM BIRINYI ASSOCIATES EITHER THROUGH RISING EARNINGS AND DIVIDENDS OR THROUGH FALLING PRICES CLEARLY THE BEARS ARE BETTING ON A FALL BACKING UP THAT ARGUMENT ALAN NEWMAN AN ANALYST AT HD BROUS & CO AND ONE OF THE GRIZZLIEST OF BEARS NOTES THAT INVESTORS ARE NOW RUSHING TO OWN STOCKS OF BIG BLUECHIP COMPANIES THE FLIGHT TO BIG STOCKS IS A SIGN THAT INSTITUTIONAL INVESTORS PARTICULARLY MUTUAL FUNDS ARE PREPARING FOR THE WORST HE CONTENDS THOSE ARE THE STOCKS THAT ARE EASIEST TO SELL WHEN PANIC SETS IN WE HEAR TAPS' PLAYING LOUD AND CLEAR HE SAYS TO BE SURE THE BEARS HAVE BEEN DEAD RIGHT REGARDING SOME SECTORS OF THE STOCK MARKET IN 1993 ANYONE HOLDING TOBACCO OR PHARMACEUTICAL STOCKS TOOK A SOUND THUMPING THOSE SECTORS FINISHED THE YEAR DOWN 26 AND 11 RESPECTIVELY THAT PATTERN HAS REPEATED ITSELF IN OTHER SECTORS WHILE THE MARKET ITSELF HASN'T PLUNGED INTO ANY WHOLESALE DECLINES IT HAS BEEN UNDERGOING WHAT SOME ANALYSTS CALL ROLLING CORRECTIONS FOR THE PAST FEW YEARS ONCE A SECTOR HAS BEEN THRASHED BY HEAVY SELLING THE SAGGING STOCK PRICES LURE THE INEVITABLE BOTTOM FISHERS INVESTORS HELLBENT ON FINDING BARGAINS THEIR BUYING AT LEAST UNTIL NOW HAS STOPPED THE SECTOR'S SLIDE AND PROVIDED A CUSHION TO PROTECT THE OVERALL MARKET ONE OF THOSE BOTTOM FISHERS IS KENT SIMONS COMANAGER OF NEUBERGER & BERMAN'S SELECTED SECTORS FUND FOR WELL OVER A YEAR STOCKS AND STOCK GROUPS HAVE CORRECTED INDEPENDENT OF THE MARKET AND WE DON'T HAVE ANY PROBLEM FINDING STOCKS WE THINK ARE ATTRACTIVE HE SAYS THE MARKET IS LIKE THE WEATHER IF YOU DON'T LIKE THE PRICES THIS WEEK WAIT A WEEK OVERALL THOUGH THE MAJORITY OF INVESTORS EXPECT A ROBUST YEAR OF PROFIT GROWTH AND DIVIDEND INCREASES IN 1994 INVESTMENT PROFESSIONALS POINT TO SOME ENCOURAGING TRENDS THE NUMBER OF COMPANIES BOOSTING THEIR DIVIDENDS IN 1993 WAS THE HIGHEST SINCE 1989 ACCORDING TO STANDARD & POOR'S CORP AND THE NUMBER OF COMPANIES INCREASING THEIR PAYOUTS WAS 23 HIGHER THAN IN 1992 EVEN IF STOCK PRICES RISE FAST ENOUGH TO KEEP THE DIVIDEND YIELD BELOW THE PSYCHOLOGICALLY IMPORTANT 3 THRESHOLD ANALYSTS AREN'T WORRIED THE YIELD HAS BEEN UNDER 3 FOR TWO YEARS NOW AND STOCK PRICES JUST KEEP GOING UP POINTS OUT AG EDWARDS'S MR GOLDMAN EARNINGS HAVE BEEN RISING AT A DOUBLEDIGIT PACE FOR THE PAST TWO YEARS AND MANY ANALYSTS EXPECT THAT RATE TO ACCELERATE THIS YEAR ACCORDING TO I/B/E/S A FIRM THAT TRACKS ANALYSTS' EARNINGS ESTIMATES 1994 PROFITS FOR THE COMPANIES INCLUDED IN S&P'S 500STOCK INDEX SHOULD CLIMB ABOUT 18 FROM 1993 LEVELS CASH THE CRITICAL FUEL THAT DRIVES STOCK PRICES HIGHER APPEARS TO BE IN AMPLE SUPPLY CASH LEVELS AT STOCK MUTUAL FUNDS IN NOVEMBER THE LATEST AVAILABLE DATA TOTALED 585 BILLION DOWN A LITTLE FROM OCTOBER LEVELS BUT CONSIDERABLY LARGER THAN THE 434 BILLION ON HAND A YEAR EARLIER ACCORDING TO INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP MONEY MAY BE COMING HOME THIS YEAR TOO IF 1993 WAS THE YEAR THAT AMERICAN INVESTORS DISCOVERED THE HUGE PROFIT POTENTIAL IN FOREIGN MARKETS THEY BOUGHT A RECORD AMOUNT OF FOREIGN STOCKS MOSTLY VIA MUTUAL FUNDS LAST YEAR 1994 MAY BE THE YEAR THEY LEARN THE HARD LESSON OF VOLATILITY ALREADY THIS YEAR THE HONG KONG MALAYSIAN AND MEXICAN STOCK MARKETS HAVE GIVEN INVESTORS THOROUGH ALBEIT SHORTLIVED BEATINGS SOME ANALYSTS FIGURE THAT GETTING ROUGHED UP OVERSEAS MAY PERSUADE SOME OF THE LESS ADVENTUROUS INVESTORS TO COME BACK TO THE RELATIVE STABILITY OF THE US MARKET THERE'S LESS ENTHUSIASM FOR THE IDEA THAT FOREIGN STOCKS ARE THE PLACE FOR MONEY MANAGERS TO PUT THEIR NEW MONEY SAYS RICHARD HOEY CHIEF ECONOMIST AND A PORTFOLIO MANAGER AT DREYFUS CORP IN PART THAT'S WHAT IS BOLSTERING OUR MARKET MR HOEY SAYS HE RECENTLY CUT BACK HOLDINGS OF MALAYSIAN PHILIPPINE AND SINGAPORE STOCKS AND PUT THE MONEY TO WORK HERE INSTEAD FINALLY THERE IS THE PRICKLY MATTER OF INVESTOR PSYCHOLOGY IN THE SOMETIMES PARADOXICAL WORLD OF THE STOCK MARKET A GOODLY DOLLOP OF BEARISH SENTIMENT IS OFTEN A BULLISH SIGN THAT IS BECAUSE PESSIMISTS HAVE BEEN HOARDING THEIR CASH EVENTUALLY THE REASONING GOES THEY WILL BREAK DOWN AND BEGIN BUYING PUSHING PRICES UP DESPITE THE RECENT RUN TO RECORD LEVELS MR GOLDMAN OF AG EDWARDS ESTIMATES THAT ROUGHLY HALF OF INVESTMENT ADVISERS ARE BEARISH IN 33 YEARS OF STUDYING THE MARKETS HE SAYS I'VE NEVER SEEN A MARKET HIT A TOP WHEN HALF OF THE PUNDITS WERE BEARISH 9401120119 940112 RULE OF LAW RENO'S MADISON PROBLEM AND HOW SHE CAN SOLVE IT BY TERRY EASTLAND IN RECENT WEEKS ATTORNEY GENERAL JANET RENO HAS SAID REPEATEDLY THAT IT'S POINTLESS FOR HER TO NAME A SPECIAL COUNSEL TO INVESTIGATE MATTERS INVOLVING THE FAILED MADISON GUARANTY SAVINGS & LOAN BECAUSE SHE WOULD BE THE PERSON APPOINTING SUCH A LAWYER SHE HAS EXPLAINED SHE STILL WOULD BE RELATED TO THE INVESTIGATION AND IT WOULD BE QUESTIONED ON THAT ACCOUNT ONLY AN INDEPENDENT COUNSEL STATUTE WHICH SHE HAS STRONGLY SUPPORTED COULD ELIMINATE THIS PROBLEM SHE SAYS SINCE UNDER SUCH A LAW A SPECIAL COURT WOULD SELECT THE COUNSEL BUT BECAUSE THERE IS NO SUCH LAW SHE WILL KEEP TO HERSELF THE MADISON CASE WITH LAWYERS AT THE MAIN JUSTICE DEPARTMENT THE BUILDING AT 10TH AND CONSTITUTION IN WASHINGTON HANDLING IT AND REPORTING TO HER MS RENO MADE BASICALLY THE SAME ARGUMENT IN EXPLAINING WHY THE PROBE OF COMMERCE SECRETARY RON BROWN WAS NOT HANDED OFF TO A SPECIAL COUNSEL BUT KEPT WITHIN MAIN JUSTICE FOR MS RENO APPARENTLY IT'S EITHER THE INDEPENDENT COUNSEL OF THE INDEPENDENT COUNSEL LAW OR MAIN JUSTICE WITH HERSELF IN CHARGE THERE IS NO THIRD WAY FOR HANDLING EXCEPTIONAL CASES THOSE IN WHICH TOP EXECUTIVE OFFICERS ARE ACCUSED OF CRIMINAL WRONGDOING OR IN WHICH AN INVESTIGATION OF FRIENDS OR RELATIVES OF TOP OFFICERS MIGHT RESULT IN A CONFLICT OF INTEREST MS RENO'S POSITION ON HOW TO HANDLE EXCEPTIONAL CASES IS ECCENTRIC TO SAY THE LEAST SHE IS THE FIRST ATTORNEY GENERAL SINCE BEFORE WATERGATE TO SAY IN EFFECT THAT EXCEPTIONAL CASES SHOULD BE HANDLED WITHIN MAIN JUSTICE AND NO PLACE ELSE MORE IMPORTANT HER POSITION IS UNPERSUASIVE FIRST IT'S ILLOGICAL TO SAY THE PUBLIC SHOULD TRUST HER TO HANDLE THE CASE BUT NOT TO MAKE A GOOD CHOICE OF SOMEONE TO TAKE IT OVER SECOND IT'S NOT NECESSARILY POINTLESS TO HANDLE A CASE LIKE THE MADISON PROBE BY PUTTING IT OUTSIDE MAIN JUSTICE IN 1979 JIMMY CARTER'S FIRST ATTORNEY GENERAL GRIFFIN BELL FOUND HIMSELF IN A SITUATION SIMILAR TO MS RENO'S JUSTICE WAS INVESTIGATING ALLEGATIONS THAT THE PRESIDENT'S FAMILY PEANUT BUSINESS HAD RECEIVED QUESTIONABLE LOANS FROM THE NATIONAL BANK OF GEORGIA OPERATED BY MR CARTER'S FRIEND BERT LANCE AND THAT SOME OF THE LOAN MONEY HAD BEEN ILLEGALLY DIVERTED INTO HIS 1976 PRESIDENTIAL CAMPAIGN MR BELL'S JUSTICE DEPARTMENT DECIDED THAT THE NEWLY PASSED INDEPENDENT COUNSEL LAW DID NOT REACH ALLEGATIONS MADE BEFORE ITS ENACTMENT MR BELL DID NOT INSIST ON KEEPING THE CASE WITHIN MAIN JUSTICE BUT NAMED NEW YORK LAWYER PAUL CURRAN AS SPECIAL COUNSEL TO CONDUCT THE INVESTIGATION ULTIMATELY GIVING HIM THE FULL POWERS PREVIOUSLY GRANTED TO ARCHIBALD COX AND LEON JAWORSKI THE WATERGATE SPECIAL PROSECUTORS BOTH APPOINTED BY THE ATTORNEY GENERAL LASTING ALMOST EIGHT MONTHS AND FINDING NO GROUNDS FOR PROSECUTION MR CURRAN'S INVESTIGATION WAS WIDELY REGARDED AS THOROUGH AND IN THE WORDS OF THE WASHINGTON POST ENTIRELY PERSUASIVE HERE IS EVIDENCE THAT AN OUTSIDE LAWYER CHOSEN BY THE ATTORNEY GENERAL CAN DO A GOOD JOB OF HANDLING THE EXCEPTIONAL CASE A CURRANSTYLE APPOINTMENT IS BUT ONE OF SEVERAL KINDS OF SPECIALCOUNSEL ARRANGEMENTS USED IN THE RECENT PAST THAT ARE AVAILABLE TO MS RENO NOR IS A SPECIALCOUNSEL OPTION THE ONLY ALTERNATIVE SHE HAS WHEN THE US ATTORNEY IN DENVER RECUSED HIMSELF IN 1990 FROM THE FRAUD INVESTIGATION OF THE SILVERADO THRIFT A CASE INVOLVING THE PRESIDENT'S SON NEIL BUSH THENATTORNEY GENERAL RICHARD THORNBURGH HAD THE CASE FORWARDED TO THE US ATTORNEY IN DALLAS MARVIN COLLINS THE MOST EXPERIENCED BANK FRAUD PROSECUTOR AVAILABLE HIS WORK ON THE CASE HAS BEEN WIDELY ACCEPTED BY TAKING THEIR RESPECTIVE CASES OUTSIDE MAIN JUSTICE MR BELL AND MR THORNBURGH MANAGED TO ALLAY CONCERNS THAT POLITICAL APPOINTEES IN WASHINGTON MIGHT SOMEHOW MANIPULATE THE INVESTIGATIVE PROCESS MS RENO HAS NOT LACKED FOR OPPORTUNITY TO PUT THE MADISON CASE WHERE IT PROBABLY BELONGS LAST OCTOBER THE RESOLUTION TRUST CORP HAVING INTENSIFIED ITS INVESTIGATION OF POSSIBLE BANK FRAUD SENT AN EXPANDED REFERRAL TO THE CLINTONAPPOINTED US ATTORNEY IN LITTLE ROCK PAULA CASEY THE CLINTONS WERE NAMED IN THE REFERRAL HOW IS UNCLEAR BUT MS CASEY A LAW STUDENT OF BILL CLINTON'S AT THE UNIVERSITY OF ARKANSAS AND A 1992 CAMPAIGN VOLUNTEER DECLINED TO PURSUE THE RECOMMENDED INVESTIGATION LATER SHE RECUSED HERSELF SOMETHING SHE SHOULD HAVE DONE EARLIER THERE WAS A NEED TO ENSURE THAT THERE BE NO MISPERCEPTIONS ABOUT THE IMPARTIALITY OF THE INVESTIGATION ACCORDING TO THE DEPARTMENT'S PRESS RELEASE MS RENO COULD HAVE ADHERED TO DEPARTMENT POLICY AND REASSIGNED THE CASE TO ANOTHER US ATTORNEY AS MR THORNBURGH HAD DONE IN THE SILVERADO CASE INSTEAD SHE PULLED THE CASE INTO MAIN JUSTICE AS IT HAPPENS THERE IS A LAW ENFORCEMENT THEORY UNDER WHICH MS RENO'S INSISTENCE ON KEEPING THE CASE INSIDE HER OWN BUILDING MIGHT MAKE SENSE ASSUME THAT THE WHITE HOUSE SPINMASTERS ARE WRONG THAT THERE ARE SPECIFIC CREDIBLE ALLEGATIONS OF WRONGDOING ON THE PART OF THE CLINTONS AND MS RENO KNOWS WHAT THEY ARE GIVEN HER BELIEF THAT AN INDEPENDENT COUNSEL BILL IS SOON TO BECOME LAW IT WOULD MAKE SENSE FOR HER TO TREAT SUCH ALLEGATIONS AS IF THE INDEPENDENT COUNSEL LAW HAD ALREADY BEEN PASSED UNDER THE LAW SPECIFIC CREDIBLE ALLEGATIONS TRIGGER WHAT IS CALLED A PRELIMINARY INVESTIGATION HANDLED BY THE CRIMINAL DIVISION SUCH AN INQUIRY MAY LEAD TO A COURTAPPOINTED COUNSEL ON THIS THEORY MS RENO COULD BE RUNNING A DE FACTO PRELIMINARY INVESTIGATION IN ANTICIPATION OF A NEW LAW AGAIN THIS THEORY ASSUMES A CERTAIN SET OF FACTS AS MATTERS NOW STAND MS RENO'S INSISTENCE ON KEEPING THE CASE WITHIN MAIN JUSTICE IS ONLY CREATING POLITICAL PRESSURE FOR HER TO DISPOSE OF IT IN PERHAPS THE WORST WAY BY HANDING IT OFF TO AN INDEPENDENT COUNSEL ONCE THE INDEPENDENT COUNSEL LAW IS PASSED ON ANOTHER BASIS THE NEW LAW LIKE THE PREVIOUS ONE WILL INCLUDE A PROVISION WHEREBY THE ATTORNEY GENERAL MAY SEEK A COURTAPPOINTED COUNSEL WHEN AN INVESTIGATION OF CRIMINAL CHARGES COULD RESULT IN A PERSONAL FINANCIAL OR POLITICAL CONFLICT OF INTEREST FOR THE ATTORNEY GENERAL OR OTHER JUSTICE OFFICERS THE INDEPENDENT COUNSEL LAW HAS NOT BEFORE BEEN USED IN CASES OF CONFLICTS INVOLVING THE PRESIDENT AND WERE MS RENO TO EMPLOY IT HERE SHE WOULD CREATE A PRECEDENT THAT IN SIMILAR CIRCUMSTANCES COULD LEAD TO THE APPOINTMENT OF OTHER INDEPENDENT COUNSELS FOR THIS PRESIDENT AND FUTURE ONES THIS WOULD CERTAINLY BE ONE WAY FOR MS RENO TO GET RID OF HER MADISON PROBLEM BUT IT WOULD NOT BE REQUIRED BY THE LAW AND IT WOULD HARDLY SERVE THE BEST INTERESTS OF THE PRESIDENCY OR THE COUNTRY MR EASTLAND IS EDITOR OF FORBES MEDIACRITIC AND A FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON 9401120118 940112 CREDIT MARKETS MUNICIPAL ISSUES TOTALING MORE THAN 2 BILLION MEET WITH SPIRITED DEMAND IN FIRST FLOOD OF '94 BY THOMAS T VOGEL JR AND LYNN ADLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MUNICIPAL ISSUERS FOUND RELATIVELY STRONG DEMAND FOR MORE THAN 2 BILLION OF NEW BONDS YESTERDAY THE FIRST FLOOD OF NEW SUPPLY OF THE YEAR BUT WHILE DEMAND WAS STRONG MARKET PLAYERS AND ANALYSTS WERE RELUCTANT TO PROCLAIM THE START OF THE GREAT MUNICIPAL BOND MARKET RALLY OF 1994 WHICH MANY OF THEM HAVE BEEN PREDICTING FOR MONTHS THE YIELDS FOR A NUMBER OF MUNICIPAL BOND OFFERINGS WERE CUT YESTERDAY A SIGN OF GOOD DEMAND BUT IT APPEARS THAT THE YIELD CUTTING WAS MORE THE RESULT OF CAUTIOUS UNDERWRITERS TESTING THE WATERS OF A NEW YEAR RATHER THAN EXTREMELY STRONG INTEREST IN NEW MUNICIPAL BONDS IN THE SECONDARY MARKET PRICES WERE LITTLE CHANGED YESTERDAY CHICAGO'S 575 COUPON BONDS MATURING IN 2023 ROSE 1/4 POINT TO 100 TO YIELD 575 MEANWHILE TREASURY SECURITIES ROSE MODESTLY WITH THE 10YEAR NOTE POSTING A GAIN OF LESS THAN 1/4 POINT OR LESS THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 100 29/32 TO YIELD 561 COMPARED WITH 563 ON MONDAY THE 30YEAR BOND ROSE LESS THAN 1/8 POINT TO 100 3/32 TO YIELD 623 MANY MUNICIPAL BOND MARKET ANALYSTS HAD PREDICTED THAT THIS YEAR WOULD BE A BOOM YEAR FOR TAXEXEMPT MUNI BONDS BECAUSE OF AN EXPECTED DROP IN ISSUANCE AND HIGHER INCOME TAXES FOR MANY AMERICANS THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP HAS ESTIMATED THAT TOTAL ISSUANCE WOULD DROP TO ABOUT 179 BILLION THIS YEAR COMPARED WITH NEARLY 290 BILLION LAST YEAR MUCH OF THAT DROP WILL COME AS A RESULT OF REDUCED REFUNDINGS WHERE MUNICIPALITIES ISSUE NEW LOWERYIELDING BONDS TO REPLACE HIGHERYIELDING BONDS THE PUBLIC SECURITIES ASSOCIATION FOR EXAMPLE PROJECTS REFUNDINGS WILL TUMBLE TO 689 BILLION FROM LAST YEAR'S RECORD 190 BILLION THAT IS LIKELY TO BE THE CASE FOR 1994 UNLESS OF COURSE THERE IS ANOTHER DIP IN INTEREST RATES WHICH FEW ANALYSTS ARE PREDICTING BUT NOT EVERYONE IS PREDICTING A LEAN YEAR AS FAR AS NEW MUNI BOND ISSUES MBIA INC A LEADING MUNI INSURER SAID IT EXPECTS 1994 TO BE ANOTHER BIG ISSUANCE YEAR BASED ON A NATIONWIDE SURVEY IT COMMISSIONED THE SURVEY OF 830 STATE AND LOCAL GOVERNMENT FINANCE DIRECTORS SUGGESTS THAT 240 BILLION WORTH OF MUNICIPAL DEBT COULD COME TO MARKET IN 1994 BELOW THE 1993 LEVEL BUT FAR ABOVE THE PUBLIC SECURITIES ASSOCIATION'S ESTIMATE MOST OF THE NEW ISSUES SOLD YESTERDAY APPEAR TO HAVE BEEN WELL RECEIVED BY INVESTORS AMONG THE DAY'S BIGGEST REFUNDING ISSUES WAS 3805 MILLION OF MORTGAGE REVENUE BONDS FROM NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY AND 362 MILLION OF VARIOUS OHIO BUILDING AUTHORITY BONDS LATE YESTERDAY YIELDS FOR THE NEW YORK STATE OFFERING WERE LOWERED BY 002 TO 005 PERCENTAGE POINT DUE TO STRONG DEMAND FOLLOWING THE CUT YIELDS RANGED FROM 225 FOR BILLS MATURING IN AUGUST 1994 TO 553 FOR BONDS MATURING IN 2024 THE BONDS WHICH WERE SOLD BY A GROUP OF UNDERWRITERS LED BY JP MORGAN SECURITIES INC WERE RATED DOUBLEA BY MOODY'S INVESTORS SERVICE INC AND TRIPLEA BY STANDARD & POOR'S CORP OTHER NEW OFFERINGS ALSO SAW THEIR YIELDS CUT INCLUDING REEDY CREEK IMPROVEMENT DISTRICT FLA'S 219 MILLION UTILITIES REVENUE IMPROVEMENT AND REFUNDING BONDS AND ALBUQUERQUE NM'S 1122 MILLION JOINT WATER AND SEWER SYSTEM REVENUE AND REFUNDING BONDS THIS IS THE FIRST REAL TEST WE'VE HAD AS FAR AS NEW ISSUES THIS YEAR SAID PETER WOLL A MARKET ANALYST AT MUNICIPAL MARKET DATA A UNIT OF THOMSON FINANCIAL SERVICES THE IMPRESSION I WAS GETTING WAS THAT THERE WAS A LOT OF NOISE IN THE MUNICIPAL BOND MARKET YESTERDAY BUT NOT A LOT OF ACTION IN TERMS OF PRICES RISING SAID MR WOLL THERE CERTAINLY WASN'T ANY SCRAMBLE OR FEEDING FRENZY BECAUSE THE MARKET WAS TRYING TO ABSORB ALL THE VOLUME HE ADDED THIS IS STILL A HANGOVER FROM DEALS THAT DIDN'T GET DONE LAST YEAR SAYS GEORGE FRIEDLANDER MANAGING DIRECTOR AND FIXEDINCOME STRATEGIST AT SMITH BARNEY SHEARSON NOT THAT MANY NEWMONEY DEALS ARE AROUND WHICH IS TYPICAL IN MOST EARLY JANUARYS SO I'M NOT SURPRISED ISSUERS TARGETED THIS PERIOD TO TAKE ADVANTAGE OF AN OTHERWISE QUIET MARKET TREASURY NOTES AND BONDS SHOWED MODERATE PRICE GAINS AS INVESTORS AWAITED KEY INFLATION FIGURES BY THE TIME US TRADING BEGAN YESTERDAY PRICES HAD DIPPED IN OVERNIGHT TRADING AND RECOVERED TREASURYS THEN STUMBLED TWICE MORE BOUNCING BACK EACH TIME THE MARKET WAS IN A BUYTHEDIP MODE SAID TONY CRESCENZI HEAD OF FIXED INCOME AT MILLER TABAK HIRSCH & CO A RUSH OF BUYING RELATED TO MUNICIPAL DEFEASANCE WAS A MAJOR FORCE IN PROPPING UP THE MARKET ESPECIALLY FIVE TO SEVENYEAR MATURITIES WHICH WERE AMONG THE BEST PERFORMERS AS PART OF A DEFEASANCE PROGRAM A STATE OR LOCAL GOVERNMENT ISSUES NEW SECURITIES TO REFUND OLDER HIGHERYIELD DEBT UNTIL THE OUTSTANDING SECURITIES CAN BE CALLED PROCEEDS FROM THE ISSUANCE ARE INVESTED IN TREASURY ISSUES TRADERS ALSO REACTED TO A NEW YORK TIMES REPORT THAT RESEARCHERS AT THE BUREAU OF LABOR STATISTICS BELIEVE THE CONSUMER PRICE INDEX HAS BEEN OVERSTATING THE INFLATION RATE IT'S A CONCEPT THAT GETS KICKED AROUND AND SURFACES EVERY SIX MONTHS OR SO SAID DOUG SCHINDEWOLF A MONEY MARKET ECONOMIST AT SMITH BARNEY SHEARSON INC EVERY ECONOMIC SURVEY HAS ITS FLAWS AND I DON'T KNOW THAT THE PROBLEMS WITH THE CPI ARE ANY WORSE HE ADDED MEANWHILE TRADERS WERE BETTING THAT THIS WEEK'S INFLATION NEWS WILL BE SUPPORTIVE FOR THE BOND MARKET ANALYSTS BELIEVE TODAY'S LABOR DEPARTMENT REPORT WILL SHOW THAT THE PRODUCER PRICE INDEX FELL 01 IN DECEMBER LED BY FALLING ENERGY PRICES TOMORROW'S REPORT ON THE DECEMBER CONSUMER PRICE INDEX ALSO IS EXPECTED TO PROVIDE GOOD NEWS FOR BONDS A MODERATE 02 RISE THE BOND MARKET WAS BLINDSIDED AT MIDAFTERNOON BY A REPORT SHOWING MUCH STRONGERTHANEXPECTED RETAIL SALES IN EARLY JANUARY THE JOHNSON REDBOOK SERVICE REPORTED CHAIN AND DEPARTMENT STORE SALES SURGED 5 DURING THE FIRST WEEK OF THE NEW YEAR TRADERS QUICKLY TOOK PRICES LOWER IN RESPONSE BUT THE DECLINES PROVED SHORTLIVED AND THE MARKET REBOUNDED THE TREASURY DEPARTMENT MEANTIME ANNOUNCED PLANS TO REDEEM ITS 8 1/2 25YEAR BOND ISSUE DUE MAY 15 1999 PRIVATE INVESTORS HOLD 961 MILLION OF THE BONDS NEW ISSUES DOMINATED THE ACTIVITY WITH MORE THAN 3 BILLION OF DEBT PRICED FROM CORPORATE AND GOVERNMENT AGENCIES ISSUERS INCLUDED SEARS ROEBUCK & CO SYSTEM ENERGY RESOURCES INC WACHOVIA CORP FIRST USA BANK AND THE PROVINCE OF MANITOBA TRADING IN THE INVESTMENTGRADE MARKET WAS MODERATE WITH MANY BONDS POSTING MODERATE GAINS JUNK BOND PRICES ROSE ABOUT 1/2 POINT THE BONDS OF WESTINGHOUSE ELECTRIC CORP REACTED POSITIVELY TO NEWS OF A RESTRUCTURING PLAN THAT INCLUDES WRITEDOWNS LAYOFFS AND A 750 MILLION PRETAX OR 500 MILLION AFTERTAX CHARGE TO ITS FOURTHQUARTER EARNINGS THE COMPANY'S 8 5/8 COUPON DEBENTURES MATURING IN 2012 ROSE ONE POINT OR 10 FOR A BOND WITH A 1000 FACE VALUE TO 104 THE YIELD DROPPED TO 82 FROM 83 SEARS ROEBUCK'S 300 MILLION ISSUE OF 10YEAR NOTES WAS PRICED AT 99573 TO YIELD 6308 RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WAS LEAD MANAGED BY MORGAN STANLEY & CO FIRST USA BANK A UNIT OF FIRST USA INC SOLD 350 MILLION OF FIVEYEAR BANK NOTES PROCEEDS WILL BE USED TO FINANCE THE CREDITCARD COMPANY'S RECENT GROWTH A COMPANY SPOKESMAN SAID FIRST USA BANK'S BUSINESS GREW BY MORE THAN 70 IN FISCAL YEAR 1993 THE SPOKESMAN SAID ADDING THAT THE COMPANY EXPECTS TO OFFER MORE THAN 1 BILLION OF DEBT IN THE FUTURE FIRST USA BANK'S NONCALLABLE NOTES WERE PRICED AT 99574 TO YIELD 585 THE ISSUE WAS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P MERRILL LYNCH & CO LEAD MANAGED THE OFFERING MERRILL ALSO LED A 250 MILLION OFFERING OF 15YEAR NONCALLABLE SUBORDINATED NOTES FOR WACHOVIA A UNIT OF FIRST WACHOVIA CORP THE DEBT WAS PRICED AT 9987 TO YIELD 638 AND IS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P MORTGAGE SECURITIES ROSE SLIGHTLY AFTER A FLURRY OF DEALS LAST WEEK ISSUANCE OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS HAS SLOWED NO REMICS WERE ANNOUNCED YESTERDAY REPORTEDLY BECAUSE DEALERS HAVEN'T SOLD WHAT THEY HAVE ON HAND INSTEAD BUSINESS WAS FUELED BY INVESTORS SEEKING 30YEAR 65 FEDERAL HOME LOAN MORTGAGE CORP AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES AND 7 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES ALSO POPULAR WERE SECURITIES BACKED BY FANNIE MAE AND FREDDIE MAC SECURITIES WITH HIGHER COUPONS SAID ALLEN SIEGAL HEAD PASSTHROUGH TRADER AT CS FIRST BOSTON THAT'S BECAUSE THEY ARE VIEWED AS CHEAPER THAN CURRENT COUPONS OR NEWLY ORIGINATED BONDS CARRYING COUPONS OF 6 1/2 AND 7 CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9401120117 940112 POTASH CORP UNIT GETS GRANDJURY SUBPOENA IN PRICEFIXING PROBE SASKATOON SASKATCHEWAN POTASH CORP OF SASKATCHEWAN SAID ITS US SALES SUBSIDIARY HAS RECEIVED A GRANDJURY SUBPOENA FROM THE US JUSTICE DEPARTMENT'S ANTITRUST DIVISION WHICH IS INVESTIGATING ALLEGATIONS OF POTASH PRICE FIXING SEVERAL US POTASH PRODUCERS ALSO HAVE REPORTED RECEIVING GRANDJURY SUBPOENAS THEY INCLUDE IMC FERTILIZER GROUP INC NORTHBROOK ILL AND KALIUM CHEMICALS LTD A SUBSIDIARY OF VIGORO CORP CHICAGO THE SASKATOON COMPANY SAID ITS SUBPOENA REQUESTED DOCUMENTS RELATING TO ITS NORTH AMERICAN POTASH BUSINESS THE COMPANY WHICH MINES RICH POTASH DEPOSITS IN SASKATCHEWAN DESCRIBES ITSELF AS THE WORLD'S LARGEST INVESTOROWNED PRODUCER OF POTASH A WIDELY USED FERTILIZER THE ANTITRUST DIVISION'S INVESTIGATION INVOLVES ALLEGATIONS MADE IN PENDING CIVIL COMPLAINTS SEVERAL CLASSACTION CIVIL SUITS FILED IN APRIL CLAIM ON BEHALF OF US BUYERS OF POTASH THAT BUYERS' COSTS HAVE RISEN AS A RESULT OF PRICE FIXING BY PRODUCERS SINCE 1987 THOSE SUITS WERE CONSOLIDATED IN FEDERAL DISTRICT COURT IN MINNESOTA AND DEFENDANTS INCLUDE MOST POTASH PRODUCERS IN THE US AND CANADA POTASH CORP SAID IT BELIEVES THE ALLEGATIONS TO BE WITHOUT MERIT 9401120116 940112 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9401120115 940112 BUSINESS BRIEF MANVILLE CORP SCHULLER UNIT WILL EXPAND PLANTS' FIBERGLASS CAPACITY MANVILLE CORP'S SCHULLER INTERNATIONAL INC UNIT SAID IT PLANS TO SPEND 100 MILLION TO EXPAND THE CAPACITY OF ITS FIBERGLASS INSULATION PLANTS SCHULLER SAID THE EXPANSIONS WHICH WILL INCREASE TOTAL PRODUCTION CAPACITY ABOUT 20 COME IN RESPONSE TO STRONG INSULATION DEMAND AS HOUSING STARTS RISE AND HOME REMODELING SURGES THE COMPANY PLANS TO INCREASE CAPACITY AT PLANTS IN INNISFAIL ALBERTA WILLOWS CALIF AND RICHMOND IND SCHULLER ALSO SAID IT PLANS A MAJOR EXPANSION IN EITHER MCPHERSON KAN OR WINDER GA MANVILLE IS BASED IN DENVER 9401120114 940112 PETROCORP DISCOVERY WELL FLOWS HOUSTON PETROCORP INC SAID ITS DISCOVERY WELL SAGEBRUSH 1 FLOWED AT A RATE OF 648 BARRELS OF OIL AND 644000 CUBIC FEET OF NATURAL GAS A DAY ON A 16/64INCH CHOKE A SPOKESMAN FOR PETROCORP SAID THE WELL WILL BEGIN PRODUCING IN ABOUT 30 DAYS THE OIL AND NATURAL GAS COMPANY SAID IT OWNS A 775 WORKING INTEREST IN THE WELL ON THE UTE MOUNTAIN UTE INDIAN RESERVATION IN MONTEZUMA COUNTY IN SOUTHWESTERN COLORADO CLOSELY HELD ALLANTE OPERATING CO OF DALLAS OWNS A 10 WORKING INTEREST IN THE WELL AND AN UNIDENTIFIED CLOSELY HELD COMPANY OWNS THE REMAINING 125 9401120113 940112 COMMODITIES LIVESTOCK FUTURES RISE AS RETAILERS BUY MEAT COLD WEATHER MAY HURT WEIGHTS OF HOGS CATTLE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LIVESTOCK FUTURES PRICES RALLIED ACROSS THE BOARD AS RETAILERS STOCKED UP ON RED MEAT AND BITTER WINTER WEATHER THREATENED THE DEVELOPMENT OF HOGS AND CATTLE IN THE MIDWEST AT THE CHICAGO MERCANTILE EXCHANGE HOGS FOR FEBRUARY DELIVERY WERE UP 080 CENT TO 4717 CENTS A POUND THE PRICE OF THE ACTIVELY TRADED FEBRUARY PORKBELLY FUTURES CONTRACT LEAPED 155 CENTS TO 5792 CENTS A POUND AND FEBRUARY CATTLE ROSE 060 CENT TO 7427 CENTS A POUND THE RELATIVELY LOW LEVELS OF FUTURES PRICES HAVE TRANSLATED INTO RELATIVELY LOW PRICES ON THE WHOLESALE CASH MARKETS FOR BOTH PORK AND BEEF ANALYSTS SAID AS A RESULT RETAILERS HAVE BEEN STOCKING UP ON RED MEAT AND PROMOTING IT IN THEIR STORES OVER THE HOLIDAYS RETAILER BUYING HAD GOTTEN TO HANDTOMOUTH LEVELS AND THEY HAD GOTTEN THEMSELVES A LITTLE SHORT BOUGHT SAID CHARLES LEVITT SENIOR MEAT ANALYST FOR ALARON TRADING CORP NOW WITH RETAILERS LOOKING AT LOW PRICES ON THE WHOLESALE MARKET AND FAIRLY BIG PROFIT MARGINS THEY'RE WILLING TO STOCK UP AND FEATURE MEAT A NUMBER OF OTHER FACTORS ALSO HAVE BEEN EXERTING UPWARD PRESSURE ON FUTURES PRICES ANALYSTS SAID ONE OF THEM IS THE DECLINING WEIGHT OF HOGS ON US FARMS OVER THE PAST FEW WEEKS POSSIBLY BECAUSE OF HARSH EARLY WINTER WEATHER IN EARLY DECEMBER THE AVERAGE WEIGHT OF HOGS IN THE IOWA AND SOUTHERN MINNESOTA MARKETING REGION WAS AN UNUSUALLY HIGH 252 POUNDS A HEAD BUT COLD TEMPERATURES AND AGGRESSIVE MARKETING OF THE HEAVIEST HOGS BY FARMERS HAS THINNED OUT THE WEIGHT AS OF EARLY JANUARY THE AVERAGE WEIGHT OF HOGS IN THE SAME REGION HAD FALLEN TO 248 POUNDS A HEAD MORE COLD WEATHER IS FORECAST FOR THE MIDWEST THIS WEEKEND WITH PRIVATE FORECASTING COMPANIES CALLING FOR SUBZERO TEMPERATURES BY SATURDAY FARMERS ARE SLAUGHTERING HOGS ACTIVELY IN AN EFFORT TO MARKET AS MUCH MEAT AS POSSIBLE BEFORE THE COLD WEATHER HITS DALE BENSON SENIOR LIVESTOCK ANALYST FOR DEAN WITTER SAID UNEXPECTEDLY LOW SLAUGHTER OF HOGS LAST WEEK CONTRIBUTED TO THE FUTURES MARKET'S PRICE STRENGTH SLAUGHTER OF HOGS WAS ONLY ABOUT 178 MILLION HEAD LAST WEEK COMPARED WITH 194 MILLION A YEAR EARLIER THAT WAS A LITTLE LOWER THAN THE TRADERS EXPECTED MR BENSON SAID IT PRESSURED THE MARKET HIGHER PARTLY BECAUSE OF LAST WEEK'S RELATIVELY LOW SLAUGHTER THE MOVEMENT OF FROZEN PORK BELLIES INTO COLD STORAGE ALSO WAS LOWER THAN EXPECTED WHEN THE WEEKLY COLDSTORAGE REPORT WAS RELEASED AFTER TRADING YESTERDAY THE REPORT SHOWED NET MOVEMENT OF 12 MILLION POUNDS OF PORK BELLIES OR UNCURED BACON INTO COLD STORAGE THAT WAS ON THE LOW END OF TRADE ESTIMATES MR BENSON SAID IT SHOULD CAUSE SOME FOLLOWTHROUGH TODAY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS WHEAT FUTURES PRICES DECLINED IN LIGHT TRADING AHEAD OF A MAJOR US AGRICULTURE DEPARTMENT CROP REPORT WHICH IS SCHEDULED TO BE RELEASED TODAY AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN FIVE CENTS TO 38575 A BUSHEL IN ITS REPORT THE USDA WILL GIVE ITS FINAL ESTIMATE OF THE 199394 US GRAIN CROP WHICH HAS PROVED TO BE MUCH SMALLER THAN EXPECTED BECAUSE OF LAST SUMMER'S FLOODING IN THE MIDWEST POSSIBLY MORE SIGNIFICANT FOR GRAIN PRICES WILL BE THE COMPONENT OF THE REPORT THAT SHOWS USE OF GRAIN AS FEED FOR LIVESTOCK IT IS CRITICAL ANALYSTS SAY FOR GRAIN PRICES TO REACH LEVELS AT WHICH CORN AND OTHER GRAINS BECOME TOO EXPENSIVE TO FEED TO LIVESTOCK IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION ENERGY CRUDEOIL FUTURES PRICES ROSE IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE AS TRADERS ANTICIPATED A BULLISH WEEKLY INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE AND ALMOST GRUDGINGLY LET PRICES RECOVER SOME OF MONDAY'S PRECIPITOUS 65CENT DROP EVEN AS FEBRUARY CONTRACTS GAINED 18 CENTS TO CLOSE AT 1485 A BARREL SOME MARKET PESSIMISTS WERE ANTICIPATING ANOTHER DECLINE IF THE API NUMBERS WEREN'T POSITIVE ENOUGH IN FACT THE API STATISTICS RELEASED AS USUAL AFTER NYMEX TRADING ENDED SHOWED A DECLINE IN CRUDE US INVENTORIES THAT WAS SIGNIFICANTLY STEEPER THAN GENERALLY ANTICIPATED GASOLINE STOCKS HOWEVER SHOWED AN INCREASE MEANWHILE NATURALGAS FUTURES SETTLED HIGHER YESTERDAY ON TECHNICAL FACTORS GASOLINE AND HEATINGOIL FUTURES FINISHED HIGHER AS WELL 9401120112 940112 MARKETING & MEDIA COMPETITION FOR '98 OLYMPIC TV RIGHTS LOOMS AS FOX EMERGES AS MAJOR PLAYER BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL THE COMPETITION FOR 1998 WINTER OLYMPICS TELEVISION RIGHTS LOOMS AS AN INSTANT REPLAY OF NATIONAL FOOTBALL LEAGUE TV BIDDING CBS INC VS NEWS CORP'S FOX NETWORK FOX WHICH KNOCKED CBS OUT OF PRO FOOTBALL IN DECEMBER APPEARS TO PRESENT THE LEADING THREAT TO SEIZE THE WINTER GAMES WHICH CBS CARRIED IN 1992 AND WILL AIR THIS YEAR STARTING FEB 12 THE INTERNATIONAL OLYMPIC COMMITTEE WILL OPEN BIDS NEXT WEDNESDAY IN NEW YORK FOX IS GIVING THE IMPRESSION THEY'LL BE VERY COMPETITIVE SAYS AN EXECUTIVE AT ANOTHER NETWORK AFTER THE NFL YOU'VE GOT TO TAKE THEM VERY SERIOUSLY THE SOCALLED FOURTH NETWORK WON THE NFL'S NATIONAL FOOTBALL CONFERENCE TV PACKAGE BY BIDDING 158 BILLION OVER FOUR YEARS OR 400 MILLION MORE THAN CBS WAS WILLING TO OFFER RUPERT MURDOCH CHAIRMAN OF PARENT NEWS CORP EMPHASIZED THEN THE VALUE OF SUCH HIGHPROFILE SPORTS PROGRAMMING A FOX SPOKESWOMAN WOULDN'T COMMENT ON THE OLYMPICS AND OTHER OFFICIALS COULDN'T BE REACHED IT IS KNOWN HOWEVER THAT COMPANY OFFICIALS HAVE MET WITH OLYMPIC COMMITTEE NEGOTIATORS FOX HAS ALSO SENT CONSULTANTS TO THE 1998 SITE AT NAGANO JAPAN TO STUDY LOGISTICS AND COSTS BEYOND THE ATTRACTIONS OF THE 1998 GAMES THIS PROCESS MAY BE A WAY OF PREPARING FOX FOR A BID OF EVEN GREATER INTEREST TO MR MURDOCH THE SUMMER GAMES OF 2000 IN HIS NATIVE AUSTRALIA A STALKING FOX COULD DO WHAT IT DID FOR THE NFL SEND TVRIGHTS PRICES THROUGH THE ROOF THE 1992 WINTER GAMES IN ALBERTVILLE FRANCE WENT FOR 243 MILLION AND THE GAMES IN LILLEHAMMER NORWAY FOR 295 MILLION INDUSTRY SPECULATION HAS THE NAGANO GAMES FETCHING MORE THAN 350 MILLION NBC WHICH WILL CARRY THE 1996 ATLANTA SUMMER GAMES DROPPED OUT OF THE RUNNING THIS WEEK WE FELT THERE WERE A NUMBER OF FACTORS WHICH WOULDN'T MAKE IT ECONOMICALLY SENSIBLE FOR US A SPOKESMAN SAID OUR PLATE IS PRETTY FULL AS FAR AS SPORTS IS CONCERNED BUT FOR CBS THIS IS AN IMPORTANT BID IT'S STILL REELING FROM THE LOSS OF ITS 38YEAR TIE WITH THE NFL AND WANTS TO RESTORE SOME LUSTER TO ITS SPORTS DIVISION CBS ALSO HAS DONE WELL WITH THE PAST TWO WINTER OLYMPICS AND WOULD LIKE TO GET THEM AGAIN CBS HAS BEEN AIDED DURING THE PAST TWO OLYMPICS BY LAYING OFF SOME OF THE PROGRAMMING INVENTORY TO TURNER BROADCASTING SYSTEM INC WHICH PAID A COMBINED 50 MILLION FOR THE TWO GAMES THE NETWORK HASN'T ESTABLISHED A CABLE PARTNER YET IN CONNECTION WITH ITS 1998 BID IT HAS HOWEVER HELD TALKS WITH AFFILIATES ON WHETHER THEY WILL CONTRIBUTE TO THE BID'S COST THEY'VE HAD A SUCCESSFUL EXPERIENCE WITH THE GAMES AT LILLEHAMMER AND THEY'RE LIKELY TO FEEL BETTER ABOUT BEING AGGRESSIVE ABOUT JAPAN SAYS JERRY DOMINUS A SENIOR VICE PRESIDENT OF THE J WALTER THOMPSON AD AGENCY AND FORMER CBS EXECUTIVE BUT THESE DAYS RUPERT MURDOCH SEEMS TO HAVE A DIFFERENT WAY OF EVALUATING WHAT A PROPERTY IS WORTH AND THAT MAY BLOW THE LID OFF OF EVERYBODY 9401120111 940112 INTERNATIONAL LEHMAN BROTHERS UNIT SETTLES PART OF CLAIM BY MAXWELL LIQUIDATOR LONDON INVESTMENT BANK LEHMAN BROTHERS INTERNATIONAL SAID IT HANDED OVER SHARES WORTH 27 MILLION 403 MILLION TO THE LIQUIDATORS OF BISHOPSGATE INVESTMENT MANAGEMENT THE TRUSTEE OF SOME OF THE PENSION FUNDS DEPLETED BY THE LATE ROBERT MAXWELL THE SETTLEMENT IS PART OF A MULTIMILLIONPOUND CLAIM BY THE MAXWELL LIQUIDATORS ROBSON RHODES AGAINST LEHMAN BROTHERS LEHMAN IS STILL CONTESTING BIM'S CLAIM FOR THE RECOVERY OF OTHER ASSETS WORTH ABOUT 70 MILLION LEHMAN BROTHERS INTERNATIONAL IS THE LONDONBASED SUBSIDIARY OF USBASED AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC BROKERAGE UNIT THE HOLDINGS TURNED OVER TO THE BIM LIQUIDATORS CONSIST OF UNITS IN A LAZARD PROPERTY UNIT TRUST AND SHARES IN THE DAILY TELEGRAPH PLC ROBSON RHODES HAD ALLEGED THAT LEHMAN ACCEPTED STOCKS TAKEN FROM MAXWELL PENSION FUNDS AS COLLATERAL FOR IMPROPER DEALINGS WITH OTHER MAXWELL COMPANIES THERE IS A FURTHER CLAIM AGAINST LEHMAN IN ITS DEALINGS WITH MAXWELLRELATED ENTITIES MIRROR GROUP PENSION TRUSTEES HAVE FILED CLAIMS TOTALING ABOUT 200 MILLION AGAINST LEHMAN AND FUND MANAGERS INVESCO MIM AND CAPEL CURE MYERS A LEHMAN SPOKESWOMAN SAID THE GROUPS WILL CONTINUE TO DEFEND THEMSELVES AGAINST THE CLAIMS 9401120110 940112 WHO'S NEWS SONY CORP RESHUFFLES OFFICIALS AT MUSIC UNITS ADDS 3 NEW CHAIRMEN TOKYO SONY CORP A CONSUMER ELECTRONICS AND ENTERTAINMENT GIANT ANNOUNCED EXECUTIVE APPOINTMENTS AT ITS RECORDED MUSIC DIVISIONS MEL ILBERMAN FORMERLY PRESIDENT OF SONY MUSIC INTERNATIONAL WAS NAMED CHAIRMAN OF THE UNIT A NEW POST ILBERMAN 65 YEARS OLD WILL BE SUCCEEDED BY ROBERT M BOWLIN 40 MR ILBERMAN AND MR BOWLIN BOTH CONTINUE AS CORPORATE EXECUTIVE VICE PRESIDENTS OF THE UNIT DON IENNER 42 PRESIDENT OF COLUMBIA RECORDS SINCE 1989 WAS NAMED TO THE ADDITIONAL POSITION OF CHAIRMAN A NEW POST DAVID GLEW NAMED PRESIDENT OF EPIC RECORDS IN 1989 BECOMES CHAIRMAN OF THE EPIC RECORDS GROUP A NEW POSITION MR GLEW 52 IS SUCCEEDED BY RICHARD GRIFFITHS 39 FORMERLY AN EPIC RECORDS EXECUTIVE VICE PRESIDENT AND PRESIDENT OF EPIC ASSOCIATED MICHELE ANTHONY 36 WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FOR SONY MUSIC ENTERTAINMENT INC MS ANTHONY WAS FORMERLY EXECUTIVE VICE PRESIDENT OF SONY MUSIC SONY MUSIC ENTERTAINMENT INC THE UMBRELLA COMPANY FOR SONY MUSIC SONY MUSIC INTERNATIONAL AND SONY CLASSICAL OVERSEES SONY'S WORLDWIDE SOFTWARE AND MUSIC OPERATIONS 9401120109 940112 INTERNATIONAL ABITIBIPRICE STAKE OF 61 BEING SOLD BY BANKS LOSING MONEY ON O&Y LOANS BY CHRISTOPHER J CHIPELLO AND LARRY M GREENBERG STAFF REPORTERS OF THE WALL STREET JOURNAL BANKERS WHO LOST MONEY LENDING TO OLYMPIA & YORK DEVELOPMENTS LTD ARE SELLING FOR 8862 MILLION CANADIAN DOLLARS US6727 MILLION THE 61 STAKE IN ABITIBIPRICE INC THAT PARTLY SECURED THEIR LOANS THE SECONDARY OFFERING OF ABITIBIPRICE SHARES WILL ENABLE THE BANKERS TO CASH IN ON A RECENT RUNUP IN THE STOCK PRICE OF THE BIG NEWSPRINT MAKER THE 545 MILLION ABITIBIPRICE SHARES ARE BEING SOLD THROUGH AN UNDERWRITING GROUP FOR C1625 A SHARE PAYABLE IN THREE INSTALLMENTS ENDING IN OCTOBER 1995 THE SHARES AREN'T BEING PUBLICLY OFFERED IN THE US FOLLOWING YESTERDAY'S ANNOUNCEMENT ABITIBIPRICE SHARES CLOSED AT C1625 EACH DOWN 25 CANADIAN CENTS ON THE TORONTO STOCK EXCHANGE THAT IS STILL MORE THAN 50 ABOVE THE STOCK'S 52WEEK LOW OF C1075 REACHED AT THE END OF SEPTEMBER ABITIBIPRICE HAS BEEN STRUGGLING TO RETURN TO PROFITABILITY AFTER REPORTING LOSSES SINCE 1990 FOR THE NINE MONTHS ENDED SEPT 30 THE TORONTO COMPANY HAD A LOSS FROM CONTINUING OPERATIONS OF C723 MILLION OR C105 A SHARE COMPARED WITH A LOSS FROM CONTINUING OPERATIONS OF C1487 MILLION OR C216 A YEAR EARLIER LIKE OTHER NEWSPRINT PRODUCERS ABITIBIPRICE HAS FOCUSED ON COSTCUTTING TO NARROW ITS LOSSES WHILE WAITING FOR PRICES TO RISE TO JUSTIFY A SHARE PRICE OF C1625 FOR ABITIBIPRICE YOU HAVE TO SPECULATE ON SOME PRETTY SIGNIFICANT IMPROVEMENT IN NEWSPRINT MARKETS SAYS ROSS HAYROE AN ANALYST WITH RESEARCH CAPITAL CORP IN VANCOUVER BRITISH COLUMBIA THAT MAY BE REASONABLE SPECULATION HE SAYS GIVEN THAT THE NORTH AMERICAN NEWSPRINT INDUSTRY OPERATED AT 96 OF CAPACITY OVER THE PAST FOUR MONTHS AND TOTAL INVENTORIES DECLINED BUT IF YOU'RE A BANKER YOU'RE NOT INCLINED TO SPECULATE HE SAYS A&G RESOURCES CORP THE UNIT SELLING THE ABITIBIPRICE SHARES IS CONTROLLED BY BANKERS THAT LENT TO OLYMPIA & YORK THE BIG REALESTATE CONCERN THAT REORGANIZED ABOUT US7 BILLION IN DEBTS UNDER CANADIAN BANKRUPTCYCOURT PROTECTION LAST YEAR AFTER THE REORGANIZATION CREDITORS THAT HAD LOANED O&Y 25 BILLION THE SOCALLED JUMBO LOAN DATING FROM 1989 SEIZED THE COLLATERAL SECURING THEIR LOAN THIS COLLATERAL INCLUDED THE ABITIBIPRICE SHARES AS WELL AS 1138 MILLION SHARES IN GULF CANADA RESOURCES LTD EQUAL TO 698 OF THE COMPANY'S COMMON SHARES OUTSTANDING THE GULF CANADA BLOCK IS VALUED AT US4062 MILLION AT YESTERDAY'S MARKET PRICE INDICATING THE ORIGINAL JUMBO LOAN NOW HAS A VALUE OF JUST 108 BILLION PROCEEDS OF US6727 MILLION FROM THE ABITIBIPRICE SHARE SALE WILL BE REPAID TO THE JUMBO LOAN LENDERS ON A PROPORTIONATE BASIS THE TOP FIVE LENDERS UNDER THE JUMBO LOAN ARE HSBC HOLDINGS PLC'S HONGKONG & SHANGHAI BANKING CORP COMMERZBANK INTERNATIONAL SA CREDIT LYONNAIS ROYAL BANK OF CANADA AND DAIICHI KANGYO BANK LTD 9401120108 940112 TREASURY WILL OFFER 252 BILLION OF BILLS CALL 25YEAR BONDS WASHINGTON THE TREASURY PLANS TO PAY DOWN 1453 BILLION ON THE PUBLIC DEBT WITH PROCEEDS FROM THE SALE NEXT TUESDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 3973 BILLION INCLUDING ABOUT 1410 BILLION OF 66DAY CASH MANAGEMENT BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON APRIL 21 1994 AND JULY 21 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794K29 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794M50 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM SEPARATELY THE TREASURY SAID THAT ON MAY 15 IT WILL CALL FOR REDEMPTION AT PAR 25YEAR BONDS DUE MAY 15 1999 THERE IS 238 BILLION OF THE 8 1/2 BONDS OUTSTANDING THE TREASURY SAID THAT THE 961 MILLION OF BONDS HELD BY PRIVATE INVESTORS WOULD BE REFINANCED WITH AN ISSUE OF FIVEYEAR NOTES TO BE ANNOUNCED JAN 19 THE 8 1/2 RATE ON THE BOND IS SIGNIFICANTLY HIGHER THAN CURRENT BORROWING COSTS SAID THE TREASURY WHICH SAID THAT CALLING THE BOND WILL SAVE TAXPAYERS 150 MILLION TO 160 MILLION BONDS HELD IN COUPON OR REGISTERED FORM SHOULD BE PRESENTED FOR REDEMPTION THROUGH A FINANCIAL INSTITUTION AT A FEDERAL RESERVE BANK OR BRANCH OR AT THE TREASURY SECURITIES NOT REDEEMED BY MAY 15 WILL STOP EARNING INTEREST THE CUSIP NUMBER ON THE BONDS IS 912810BR8 9401120107 940112 ALCOA'S SHARES DROP QUARTERLY LOSS WAS WIDER THAN EXPECTED PITTSBURGH ALUMINUM CORP OF AMERICA REPORTED A WIDERTHANEXPECTED NET LOSS OF 869 MILLION OR 1 A SHARE FOR THE 1993 FOURTH QUARTER SENDING THE STOCK OF THE NATION'S LARGEST ALUMINUM MAKER SKIDDING 34 THE QUARTERLY LOSS INCLUDED A PREVIOUSLY ANNOUNCED CHARGE OF 702 MILLION OR 80 CENTS A SHARE FOR A 3 WORKFORCE REDUCTION AND PLANT CLOSINGS THE STOCK FELL 250 TO 71625 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE EXCLUDING THE CHARGE ALCOA POSTED A LOSS OF 167 MILLION OR 20 CENTS A SHARE FOR THE 1992 FOURTH QUARTER IT POSTED A LOSS OF 80 MILLION OR 94 CENTS A SHARE WHICH INCLUDED CHARGES OF 129 MILLION WALL STREET ANALYSTS HAD A CONSENSUS ESTIMATE OF INCOME OF SEVEN CENTS A SHARE BEFORE THE CHARGE ACCORDING TO A SURVEY BY FIRST CALL PART OF THOMSON FINANCIAL SERVICES THE ALUMINUM INDUSTRY HAS SUFFERED AMID THE LOWESTEVER INFLATIONADJUSTED ALUMINUM PRICES AS A RESULT ALCOA'S REVENUE FELL 140 MILLION TO 231 BILLION WHILE ITS COSTS OF GOODS SOLD FELL ONLY 2 MILLION ON THE POSITIVE SIDE THE COMPANY CITED IMPROVED EARNINGS FROM ALCOA OF AUSTRALIA AND ALCOA ALUMINIO IN BRAZIL FOR 1993 AFTER EXTRAORDINARY CHARGES THE COMPANY REPORTED NET INCOME OF 48 MILLION OR THREE CENTS A SHARE THAT INCLUDED CURRENCY GAINS OF 9 MILLION COMPARED WITH LOSSES OF 111 MILLION IN 1992 FOR 1992 ALCOA REPORTED A LOSS OF 114 BILLION OR 1341 A SHARE FOR 1992 THE PREVIOUS YEAR ALSO INCLUDED INVENTORY GAINS OF 499 MILLION COMPARED WITH NO 1993 GAINS THOUGH THE FOURTH QUARTER LOSS WAS 17 CENTS MORE THAN EXPECTED BY JOHN C TUMAZOS AN ANALYST AT DONALDSON LUFKIN & JENRETTE HE SAID THE COMPANY'S EARNINGS DIDN'T DETERIORATE AS MUCH AS ALUMINUM PRICE AND ALCOA PERFORMED WORSE THAN EXPECTED BUT BETTER THAN ITS PEERS HE SAID PREDICTING THAT NO OTHER COMPANY IN THE ALUMINUM INDUSTRY IS LIKELY TO BE PROFITABLE IN THE FOURTH QUARTER 9401120106 940112 RUBUS DEVELOPMENT FURR'S SUPERMARKETS AGREE TO PAY PENALTIES WASHINGTON THE FEDERAL TRADE COMMISSION SAID RUBUS DEVELOPMENT CORP AND FURR'S SUPERMARKETS INC AGREED TO PAY 400000 IN CIVIL PENALTIES FOR VIOLATING A 1988 CONSENT DECREE THE CONSENT DECREE FOLLOWED A 1987 TRANSACTION IN WHICH RUBUS THEN KNOWN AS SUPERMARKET DEVELOPMENT CORP ACQUIRED THE EL PASO DIVISION OF SAFEWAY STORES INC THROUGH FURR'S INC WHOSE STORES IN TEXAS AND NEW MEXICO WERE OWNED AND OPERATED BY SUPERMARKET DEVELOPMENT FURR'S INC WAS SUCCEEDED BY FURR'S SUPERMARKETS FURR'S SUPERMARKETS AND RUBUS ARE BASED IN ALBUQUERQUE NM THE SETTLEMENT REQUIRED RUBUS AND FURR'S TO DIVEST THEMSELVES OF SUPERMARKETS IN 12 TOWNS IN NEW MEXICO AND TEXAS WHERE THE DEAL OTHERWISE WOULD HAVE SUBSTANTIALLY DECREASED SUPERMARKET COMPETITION AMONG OTHER THINGS THE FTC CHARGED THE COMPANIES WITH FAILING TO MAINTAIN THE VIABILITY AND MARKETABILITY OF THE SIX FURR'S STORES THEY WERE REQUIRED TO DIVEST BY PERMITTING THEIR DETERIORATION OR IMPAIRMENT ACCORDING TO A COMMISSION STATEMENT BUZZ DOYLE EXECUTIVE VICE PRESIDENT OF FURR'S SUPERMARKETS SAID HE COULDN'T COMMENT ON THE FTC CHARGES BUT ADDED WE HAVE AGREED TO THE SETTLEMENT TO PUT THIS MATTER BEHIND US 9401120105 940112 MARKETING & MEDIA DOW JONES AND EDS SIGN ACCORD DALLAS ELECTRONIC DATA SYSTEMS CORP SIGNED A THREEYEAR AGREEMENT WITH DOW JONES & CO TO DEVELOP A COMPUTERIZED NEWSMANAGEMENT SYSTEM TERMS WEREN'T DISCLOSED THE SOCALLED GLOBAL NEWS MANAGEMENT SYSTEM WILL REPLACE THE EXISTING EDITORIAL SYSTEMS USED BY THE WALL STREET JOURNAL ITS INTERNATIONAL EDITIONS AND BARRON'S MAGAZINE THE SYSTEM WILL RELY ON STANDARD OFFTHESHELF SOFTWARE EQUIPPED WITH ADDED FEATURES CUSTOMIZED FOR DOW JONES SAID EDS A UNIT OF GENERAL MOTORS CORP 9401120104 940112 INTERNATIONAL RUSSIA PARLIAMENT OPENS TO FULL DAY OF ARGUMENTS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S NEW PARLIAMENT OPENED AND WITHIN AN HOUR WAS HARD AT ARGUING SHOWING THAT THIS LEGISLATURE WON'T FIND COMPROMISE ANY EASIER THAN ITS PREDECESSOR DID PRESIDENT BORIS YELTSIN POINTEDLY AVOIDED THE POWERFUL BUT CONTENTIOUS LOWER HOUSE THE STATE DUMA AND CHOSE TO ADDRESS THE MORE AGREEABLE UPPER HOUSE OR FEDERATION COUNCIL WHICH IS MADE UP OF REPRESENTATIVES FROM RUSSIA'S REGIONS HIS SPEECH CALLED FOR COOPERATION AS WELL AS FOR CONTINUING REFORMS AND THE CREATION OF LAWS TO SUPPORT THEM IT IS IMPORTANT NOT TO STOP HALFWAY HE SAID LAWS ARE THE BASIS OF DEMOCRACY MEANWHILE SEVERAL MILES AWAY IN THE STATE DUMA A BITTER WRANGLE FOR POWER BROKE OUT SHORTLY AFTER THE OPENING SPEECHES AND LASTED ALL DAY THE APPARENTLY ARCANE STRUGGLE OVER HOW TO FORM FACTIONS GAVE AN EARLY INDICATION OF THE KINDS OF ALLIANCES THAT ARE LIKELY TO EMERGE AMONG THE EIGHT PARTIES THAT HAVE DUMA SEATS AND SHOWED THAT ULTRANATIONALIST VLADIMIR ZHIRINOVSKY INTENDS TO PARTICIPATE ACTIVELY WITHIN HIS PARTY BY TRADITION THE DUMA WAS OPENED AND CHAIRED BY ITS ELDEST MEMBER WHO HAPPENED TO BE A MEMBER OF MR ZHIRINOVSKY'S MISLEADINGLY NAMED LIBERAL DEMOCRATIC PARTY THE 68YEAROLD GEORGY LUKAVA IN HIS OPENING SPEECH CALLED FOR THE REBIRTH OF A GREAT RUSSIA AND DREW A STANDING OVATION FROM HIS PARTY COMRADES THEN A COMMUNIST PARTY MEMBER LED A MOMENT OF SILENCE IN MEMORY OF THOSE WHO DIED IN THE ASSAULT ON THE PREVIOUS PARLIAMENT LOCATED JUST ACROSS THE STREET MR YELTSIN HAD DISBANDED THE EARLIER PARLIAMENT AND IN OCTOBER BOMBARDED IT DURING A FURIOUS STANDOFF WHEN MR YELTSIN'S MAN PRIME MINISTER VIKTOR CHERNOMYRDIN SPOKE AT THE DUMA HE WAS MET WITH LIMP APPLAUSE HE PROMISED A NEW STAGE OF ECONOMIC REFORMS THAT WOULD FOCUS ON INDUSTRIAL PRODUCTION AND AVOID UNREASONABLE SHOCK ACTIONS MR ZHIRINOVSKY DREW ATTENTION FROM THE MOMENT HE ENTERED THE GLASS AND GRANITE BUILDING THAT USED TO HOUSE COMECON THE ECONOMIC GROUP OF SOCIALIST COUNTRIES SURROUNDED BY GUARDS PHOTOGRAPHERS AND JOURNALISTS HE GESTICULATED HIS WAY THROUGH THE HALLS MR ZHIRINOVKSY THEN TALKED AND GESTICULATED THROUGHOUT THE FIRST FEW HOURS OF THE SESSION AS EXPECTED THE COMMUNIST PARTY ALIGNED WITH ITS RURAL KIN THE AGRARIAN PARTY AND MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY COMMANDING ROUGHLY HALF OF THE VOTES IN THE DUMA IN THE KEY ISSUE OF THE DAY THE COMMUNISTLED CAMP WANTED TO SET A LIMIT THAT WOULD REQUIRE ALL GROUPS OR FACTIONS WITHIN THE PARLIAMENT TO HAVE AT LEAST 50 MEMBERS THE DEBATE KNOCKED EVERYTHING ELSE OFF OF THE AGENDA THE COMMUNISTZHIRINOVSKY SIDE WANTED TO LIMIT THE TOTAL NUMBER OF GROUPS SO AS TO SOLIDIFY ITS OWN POWER AS SOME OF THE LARGEST PARTIES OPPONENTS WANTED TO FOSTER AS MANY FACTIONS AS POSSIBLE SO AS TO ERADICATE THAT POWER AFTER NUMEROUS VOTES THE DUMA SETTLED ON 35 MEMBERS FOR A FACTION SIZE 9401120103 940112 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 306 30 TO 59 DAYS 309 60 TO 89 DAYS 310 90 TO 119 DAYS 314 120 TO 149 DAYS 316 150 TO 179 DAYS 325 180 TO 264 DAYS 333 265 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 314 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 261 THREE MONTHS 275 SIX MONTHS 297 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 318 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 307 90 DAYS 310 120 DAYS 315 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/16 2 15/16 ONE MONTH 3 1/8 3 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 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 686 60 DAYS 693 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 680 60 DAYS 690 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 9401120102 940112 BUSINESS BRIEF CBT CORP COMPANY TO SWAP STOCK ACQUIRE BMC BANKCORP CBT CORP OF PADUCAH KY WILL ACQUIRE BMC BANKCORP OF BENTON KY IN A STOCK SWAP VALUED AT 54 MILLION CBT HAS ASSETS OF ABOUT 600 MILLION WHILE BMC HAS ABOUT 200 MILLION COMPLETION IS SUBJECT TO APPROVAL BY BMC SHAREHOLDERS AND REGULATORY AUTHORITIES BMC'S STOCKHOLDERS WILL RECEIVE TWO SHARES OF CBT COMMON STOCK FOR EACH OF BMC'S 597780 SHARES CBT HAS THE OPTION TO PURCHASE UP TO 199 OF BMC'S STOCK THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE 1994 SECOND QUARTER FOLLOWING THE MERGER THREE BMC DIRECTORS WILL BE ADDED TO CBT CORP'S BOARD ITS CHAIRMAN JOE TOM HALTOM BILLY B MORGAN AND KERRY B HARVEY NO MANAGEMENT CHANGES ARE EXPECTED 9401120101 940112 BELL ATLANTIC CORP UNIT WILL AUCTION CASINO IN SETBACK TO TRUMP PARAMUS NJ DONALD TRUMP'S INTENTION TO FINALIZE QUICKLY A DEAL TO ACQUIRE THE ALADDIN HOTEL & CASINO IN LAS VEGAS FOR ABOUT 60 MILLION HAS RUN INTO A HITCH THE CASINO'S OWNER BELL ATLANTIC TRICON LEASING CORP A UNIT OF BELL ATLANTIC CORP SAID IT WILL HOLD A SEALED BID AUCTION ON THE PROPERTY IN ANNOUNCING ITS INTENTION THE COMPANY SAID A NUMBER OF SERIOUS QUALIFIED PARTIES HAVE INQUIRED ABOUT ITS AVAILABILITY AND HAVE MADE PROPOSALS TO TRICON THE COMPANY ACQUIRED THE PROPERTY IN 1991 AS A RESULT OF THE BANKRUPTCY PROCEEDINGS OF ITS FORMER OWNER GINJI CORP IF OTHER BIDDERS EMERGE MR TRUMP WOULD HAVE TO CONVINCE THE OWNER THAT HE WOULD BE ABLE TO COMPLETE THE KIND OF PUBLIC DEBT OR EQUITY OFFERING HE IS COUNTING ON TO FINANCE THE PURCHASE SEPARATELY THE TRUMP ORGANIZATION ANNOUNCED THAT AN ADVISORY COMMITTEE TO THE MAYOR OF GARY IND HAD DEEMED MR TRUMP ONE OF THE COMPANIES MOST QUALIFIED TO DEVELOP AND OPERATE ONE OF THREE RIVERBOAT CASINOS PLANNED FOR THE CITY NEXT MR TRUMP MUST BE LICENSED BY THE STATE 9401120100 940112 ELDEC'S LATEST PERIOD FORECAST LYNNWOOD WASH ELDEC CORP SAID IT EXPECTS TO REPORT THAT NET INCOME WAS LESS THAN ANTICIPATED IN THE THIRD QUARTER ENDED DEC 26 BECAUSE OF A PROVISION OF 400000 OR FIVE CENTS A SHARE THAT THE COMPANY EXPECTS TO TAKE AGAINST THE QUARTER'S EARNINGS FOR A POTENTIAL ACCOUNTSRECEIVABLE DEFAULT ANALYSTS COVERING THE COMPANY HAD EXPECTED IT TO REPORT NET INCOME OF ABOUT SIX CENTS A SHARE SAID THOMAS BROWN THE COMPANY'S CHIEF EXECUTIVE OFFICER IN THE YEARAGO QUARTER THE AEROSPACEANDDEFENSE SUBCONTRACTOR REPORTED NET INCOME OF 731000 OR 13 CENTS A SHARE ON SALES OF 275 MILLION 9401120098 940112 LETTERS TO THE EDITOR OTS'S POSITION ON LAWYER ETHICS YOUR OCT 29 ARTICLE ON LAWYERS' ETHICAL STANDARDS MISCHARACTERIZED THIS AGENCY'S POSITION ON A LAWYER'S DUTY OF DISCLOSURE YOUR ARTICLE WHICH REVIEWED ACTIONS IN GENERAL AGAINST LAWYERS STATED THAT OTS HAS ALLEGED THAT AN ATTORNEY REPRESENTING A CLIENT IN A BANK EXAMINATION MUST DISCLOSE TO THE EXAMINER THAT A CLIENT MISLEAD REGULATORS THAT'S NOT OUR POSITION AT ALL THIS AGENCY'S POSITION IS THAT A LAWYER HAS NO MORE RIGHT THAN HIS OR HER CLIENT TO MISLEAD GOVERNMENT OFFICIALS IN VIOLATION OF THE LAW IF A LAWYER CHOOSES TO MAKE STATEMENTS OF FACT TO AN EXAMINER IN PLACE OF THE CLIENT AS PETER FISHBEIN AND KAYE SCHOLER DID IN REPRESENTING LINCOLN SAVINGS THEN THE LAWYER IS SUBJECT TO THE SAME DISCLOSURE REQUIREMENTS AS THE CLIENT THERE IS NOTHING NOVEL ABOUT THIS PRINCIPLE IN FACT THE ETHICS RULES ARE CLEAR THAT THE ATTORNEYCLIENT PRIVILEGE AND THE DUTY OF CONFIDENTIALITY PROVIDE NO LICENSE FOR A LAWYER TO DECEIVE OR MISLEAD BOTH THE AMERICAN BAR ASSOCIATION'S STANDING COMMITTEE ON LEGAL ETHICS AND THE ABA TASK FORCE APPOINTED AFTER THE KAYE SCHOLER CASE AGREE WITH THE OTS POSITION WE SEE NO PURPOSE IN RESPONDING TO STATEMENTS ABOUT THE ACTIONS OF THE NEW YORK BAR'S DISCIPLINARY COMMITTEE THIS AGENCY AND KAYE SCHOLER SETTLED OUR PROCEEDING MORE THAN 18 MONTHS AGO THOSE WHO BELIEVE THAT MR FISHBEIN WAS EXONERATED BY THE COMMITTEE'S FINDINGS SHOULD READ THE OTS NOTICE OF CHARGES IN THE CASE 9401120097 940112 REVIEW & OUTLOOK EDITORIAL ASIDES CZECH IT OUT PRESIDENT CLINTON IS IN PRAGUE TODAY FOR FOREIGNPOLICY TALKS WITH CENTRAL EUROPEAN LEADERS WHILE HE'S THERE TOURING AT KMART HE SHOULD ASK FOR A BRIEFING ON THE REMARKABLE SUCCESS STORY OF THE CZECH REPUBLIC ITS IMPRESSIVE TRANSFORMATION INTO A DEMOCRATIC FREEMARKET SOCIETY CAN PROVIDE SOME VALUABLE LESSONS FOR OTHER STRUGGLING POSTCOMMUNIST NATIONS THE CZECH ECONOMIC REFORMS HAVE SO FAR BEEN CARRIED OUT WITH MODEST SOCIAL DISRUPTION UNEMPLOYMENT IS 3 INFLATION WAS 10 LAST YEAR AND THE COUNTRY HAS A BUDGET SURPLUS AND A CURRENCY THAT'S BEEN COMPLETELY STABLE FOR 40 STRAIGHT MONTHS SOME 75 OF THE ECONOMY HAS BEEN SHIFTED INTO PRIVATE HANDS THROUGH AN INNOVATIVE VOUCHER PROGRAM MORE THAN HALF OF THE CZECH PEOPLE NOW HAVE AN OWNERSHIP STAKE IN THE ECONOMY JUST AFTER RUSSIAN NATIONALISTS DID WELL IN LAST MONTH'S ELECTIONS CLINTON ADVISER STROBE TALBOTT CALLED FOR LESS SHOCK AND MORE THERAPY IN BORIS YELTSIN'S ECONOMIC POLICIES BUT IN THE PAST WEEK THE CLINTONITES HAVE ONCE AGAIN EMPHASIZED THE NEED FOR FURTHER REFORMS PERHAPS SEEING THE PROGRESS THE CANNY CZECHS HAVE MADE WILL EMBOLDEN THEM IN THAT VIEW 9401120096 940112 YOUR MONEY MATTERS SOME APPEALING ANNUITY RATES CARRY THE TRICKY RISK OF CMOS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL INSURANCE AGENTS AND BROKERS KNOW YOU'RE WORRIED ABOUT TAXES THIS TIME OF YEAR SO DON'T BE SURPRISED IF YOU GET A CALL PROMOTING ONE OF THEIR FAVORITE TAXDEFERRED INVESTMENTS SINGLEPREMIUM FIXEDRATE ANNUITIES THE CLASSIC PITCH FOR ANNUITIES SOUNDS VERY APPEALING THEY LOOK A LOT LIKE BANK CERTIFICATES OF DEPOSIT BUT OFFER MUCH HIGHER YIELDS AT LEAST INITIALLY AND THEY ALLOW INCOME TO BUILD TAXDEFERRED BUT THERE ARE SOME POTENTIAL DRAWBACKS INCLUDING ONE THAT HASN'T GOTTEN MUCH ATTENTION UNTIL RECENTLY MORE AND MORE ANNUITIES ARE BACKED AT LEAST IN PART BY COLLATERALIZED MORTGAGE OBLIGATIONS THESE SECURITIES KNOWN AS CMOS ARE SOPHISTICATED INVESTMENTS THAT ARE CREATED BY CARVING UP THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF HOME MORTGAGES BECAUSE THOSE MORTGAGES CAN BE REFINANCED OR REPAID BY HOMEOWNERS ANYTIME THOSE INTEREST AND PRINCIPAL PAYMENTS CAN BE VERY UNPREDICTABLE THAT IN TURN CAN MAKE CMOS' RETURNS CAPRICIOUS CMOS ARE GENERALLY TRIPLEA RATED SECURITIES SO THERE'S LITTLE DANGER OF DEFAULT BUT THE RISK OF DEFAULT IS ONLY ONE OF THE RISKS AN INVESTOR SHOULD CONSIDER WITH CMOS THE MAIN THREAT IS A SUDDEN CHANGE IN INTEREST RATES IF RATES FALL AND HOMEOWNERS RUSH TO REFINANCE THEIR MORTGAGES CMO INVESTORS GET PAID OFF EARLY LEAVING THEM TO INVEST IN LOWERPAYING ALTERNATIVES THIS IS KNOWN AS PREPAYMENT RISK BUT IF RATES RISE HOMEOWNERS KEEP THEIR MORTGAGES MEANING THE CMO INVESTOR IS STUCK EARNING A RATE BELOW WHAT THE MARKET IS CURRENTLY PAYING FOR SIMILAR INVESTMENTS THIS IS KNOWN AS EXTENSION RISK IN EXCHANGE FOR ASSUMING THAT UNCERTAINTY THE CMO INVESTOR IN THIS CASE THE INSURANCE COMPANY EARNS AN ATTRACTIVE YIELD THE EXTRA INCOME LETS THE INSURER OFFER BETTER YIELDS TO CONSUMERS THE PROBLEM IS THERE'S NO GUARANTEE THOSE YIELDS WILL COME THROUGH AS EXPECTED IN FACT A RECENT REPORT BY MOODY'S INVESTORS SERVICE INC A MAJOR CREDITRATING AGENCY WARNS THAT YIELDS ON ANNUITIES BACKED BY CMOS COULD DECLINE IN PERIODS OF RAPIDLY CHANGING INTEREST RATES SOME OF THE BIGGEST ISSUERS OF FIXEDRATE ANNUITIES BACKED PARTLY BY CMOS ARE ITT CORP'S HARTFORD LIFE INSURANCE CO CONSECO INC'S WESTERN NATIONAL LIFE INSURANCE CO BENEFICIAL CORP'S CENTRAL NATIONAL LIFE INSURANCE CO OF OMAHA AND LIFEUSA HOLDING INC'S LIFEUSA INSURANCE CO EACH SAYS IT USES CMOS PRUDENTLY AND THAT ITS ANNUITY BUYERS AREN'T AT ANY UNUSUAL RISK I THINK WE HAVE ONE OF THE MOST CONSERVATIVE INVESTMENT PORTFOLIOS IN THE INDUSTRY SAYS DANIEL O'BRIEN PRESIDENT OF CENTRAL NATIONAL IF THE COMPANIES ARE RIGHT INVESTORS WHO BUY THEIR ANNUITIES MAY BE GETTING A GOOD DEAL BUT IF THEY'RE WRONG INVESTORS COULD END UP WITH LESS THAN THEY EXPECT THAT'S BECAUSE INITIAL ANNUITY RATES AREN'T GUARANTEED AFTER A PERIOD OF ONE TO THREE YEARS THE INSURANCE COMPANY IS FREE TO CUT THE RATE TO A GUARANTEED MINIMUM IN OTHER WORDS IF THE INSURER SUFFERS UNEXPECTED LOSSES ON ITS INVESTMENTS IT CAN AND OFTEN DOES PASS THEM THROUGH TO ANNUITY HOLDERS BY DROPPING THEIR RATES OF RETURN OR CREDITING RATES THAT'S A REAL RISK WITH ANNUITIES FROM COMPANIES THAT HAVE GONE THE CMO ROUTE INSURANCE EXPERTS SAY IT COULD REDUCE THEIR CREDITING RATE UNLESS AN INSURER IS ABLE TO MAKE IT UP IN OTHER PARTS OF THE INVESTMENT PORTFOLIO SAYS J RYAN O'CONNELL AN ANALYST WITH MOODY'S SOME EXPERTS WORRY WHETHER INSURERS THAT BUY CMOS REALLY KNOW WHAT THEY'RE GETTING INTO MANY OF THE INVESTMENT MANAGERS OF INSURANCE COMPANIES THAT WE ANALYZE ARE VERY SURPRISED WHEN THEY FIND OUT WHAT THEIR PORTFOLIOS REALLY LOOK LIKE SAYS MAXWELL BUBLITZ SENIOR VICE PRESIDENT FOR CONSECO CAPITAL MANAGEMENT WHICH MANAGES INVESTMENT PORTFOLIOS FOR INSURERS CORRECTLY ASSESSING CMOS ISN'T AN EASY PROPOSITION EVEN WALL STREET DEALERS WHO SPECIALIZE IN THESE COMPLEX SECURITIES HAVE AT TIMES RUN AFOUL OF THEIR QUIRKS BIG INSURERS CAN HIRE EXPERIENCED PROFESSIONALS AND PAY FOR THE COMPUTER MODELS NEEDED TO FORECAST HOW CMOS WILL BEHAVE IN DIFFERENT INTERESTRATE ENVIRONMENTS MR BUBLITZ SAYS HOWEVER SMALLER INSURERS RELY HEAVILY ON BROKERAGE FIRMS THAT SELL CMOS AND MAY BE SO TAKEN WITH THEIR HIGH YIELDS THAT THEY LOSE SIGHT OF THE RISKS HE ADDS FOR INSTANCE MOODY'S CITES HOW ICH CORP A LIFE AND HEALTHINSURANCE HOLDING COMPANY IN LOUISVILLE KY LOST 100 MILLION IN 1992 AND 35 MILLION IN 1993 WHEN ITS 11 BILLION PORTFOLIO OF CMOS SUFFERED FROM A WAVE OF PREPAYMENTS COASTAL STATES LIFE INSURANCE CO A SMALL INSURER IN GEORGIA WAS SEIZED BY STATE REGULATORS FOR MUCH THE SAME REASON INDEED COASTAL EMBODIES EVERYTHING MOODY'S WARNS ABOUT SINCE IT SOLD ALMOST NOTHING BUT SINGLEPREMIUM FIXEDRATE ANNUITIES BACKED ALMOST ENTIRELY BY CMOS IT'S DIFFICULT FOR ANNUITY BUYERS TO TELL WHETHER THEIR INSURER IS MAKING A RISKY BET ON CMOS BUT ONE WAY TO PROTECT ONESELF IS TO BUY ONLY FROM TOPRATED INSURERS ETHAN KRA A MANAGING DIRECTOR WITH CONSULTANT WILLIAM M MERCER INC RECOMMENDS BUYING ONLY FROM CARRIERS RATED DOUBLEA OR HIGHER BY MOODY'S STANDARD & POOR'S CORP OR DUFF & PHELPS INVESTORS WHO BUY FROM LOWERRATED CARRIERS SHOULD MAKE SURE THEY EARN A HIGHERTHANAVERAGE RATE HE SAYS THESE DAYS THE MEDIAN RATE FOR ANNUITIES IS 505 ACCORDING TO TOWERS PERRIN A CONSULTING FIRM UNFORTUNATELY BECAUSE CMOS ARE RELATIVELY NEW EVEN INDUSTRY WATCHDOGS SUCH AS RATING AGENCIES AND STATE INSURANCE REGULATORS DON'T FULLY UNDERSTAND THE RISKS INSURANCE EXPERTS SAY BUT MR BUBLITZ BELIEVES THE AGENCIES ARE MAKING PROGRESS A YEAR AGO I WOULD SAY THEY DIDN'T KNOW WHAT THEY WERE TALKING ABOUT HE SAYS NOW I WOULD SAY THEY HAVE COME A LONG WAY ONCE THE INVESTOR IS SATISFIED ABOUT AN INSURER'S FINANCIAL STRENGTH HE OR SHE CAN BEGIN TO LOOK AT THE SPECIFICS OF THE ANNUITY CONTRACT AT THIS POINT THE SAME PROCEDURES THAT APPLY TO CHECKING OUT ANY ANNUITY APPLY TO THOSE BACKED BY CMOS INVESTORS SHOULD FIRST CONSIDER THE SURRENDER PERIOD ANNUITIES TYPICALLY CHARGE A PENALTY OF 7 OF THE INITIAL INVESTMENT IF THE MONEY IS WITHDRAWN IN THE FIRST YEAR THE AMOUNT NORMALLY DECLINES TO NOTHING AFTER THE SEVENTH YEAR IF THERE IS ANY CHANCE OF WANTING TO WITHDRAW THE MONEY IN A LUMP SUM THE INVESTOR SHOULD AVOID ANNUITIES WHERE THE SURRENDER CHARGE NEVER DISAPPEARS INVESTORS SHOULD ALSO KEEP IN MIND THAT THE INITIAL RATE ON THE ANNUITY MIGHT NOT CONTINUE FOR THE LIFE OF THE ANNUITY IF THE RATE SEEMS UNUSUALLY HIGH COMPARED WITH THE COMPETITION THAT SUGGESTS IT MIGHT FALL AFTER THE GUARANTEE PERIOD VERY OFTEN AN UNUSUALLY HIGH RATE IS A TEASER RATE SAYS MR KRA OF WILLIAM M MERCER FINALLY INVESTORS SHOULD ASK THEMSELVES WHETHER AN ANNUITY IS AN APPROPRIATE INVESTMENT AS WITH INDIVIDUAL RETIREMENT ACCOUNTS ANNUITY HOLDERS WHO WITHDRAW BEFORE AGE 59 1/2 FACE A 10 TAX PENALTY IN ADDITION TO INCOME TAXES ON THE EARNINGS 9401120095 940112 INTERNATIONAL BRIEF LWT HOLDINGS PLC PRETAX '93 NET RISE IS PUT AT 43 AMID HOSTILE BID LWT HOLDINGS PLC ESTIMATED ITS 1993 PRETAX PROFIT ROSE 43 TO 438 MILLION 654 MILLION AMID A HOSTILE TAKEOVER BY GRANADA GROUP PLC THE COMPANY IN LONDON SAID THE ESTIMATE EXCLUDES THE COST OF FIGHTING GRANADA'S TAKEOVER LWT SAID IT EXPECTS TO RECOMMEND A FINAL DIVIDEND OF 10 PENCE A SHARE WHICH WOULD BRING LWT'S FULLYEAR DIVIDEND TO 14 PENCE A SHARE AN INCREASE OF 184 FROM 1992 THE BROADCASTING CONCERN OFFERED THE ESTIMATES AS FURTHER REASONS FOR SHAREHOLDERS TO REJECT GRANADA'S 660 MILLIONUNSOLICITED TAKEOVER BID GRANADA OWNED 175 OF LWT PRIOR TO THE BID 9401120094 940112 CBOT APPEARS POISED TO LEAVE GLOBEX AS RIFT WITH OTHER PARTNERS WIDENS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OF TRADE ONE OF THE ORIGINAL PARTNERS IN THE GLOBEX AFTERHOURS ELECTRONIC FUTURES TRADING SYSTEM APPEARS POISED TO LEAVE THE SYSTEM IN APRIL A RIFT HAS DEVELOPED BETWEEN THE CBOT AND THE OTHER TWO PARTNERS IN GLOBEX THE CHICAGO MERCANTILE EXCHANGE AND REUTERS HOLDINGS PLC AND IT SEEMS TO BE WIDENING FOR EXAMPLE OFFICIALS OF THE CME AND REUTERS WILL MEET IN CHICAGO TOMORROW TO DISCUSS THE FUTURE OF THE GLOBEX SYSTEM BUT BECAUSE OF DIFFERENCES WITH THE CME AND REUTERS CBOT EXECUTIVES WON'T BE AT THE MEETING GLOBEX IS THE BIGGEST AND MOST AMBITIOUS EFFORT EVER TO CREATE A COMPUTERIZED GLOBAL TRADING LINK BETWEEN FINANCIAL EXCHANGES BUT ITS LOW TRADING VOLUME HAS BEEN A DISAPPOINTMENT DEVELOPED BY REUTERS IN PARTNERSHIP WITH CHICAGO'S TWO BIG FUTURES MARKETS IT HAS COST REUTERS MORE THAN 80 MILLION AND STILL IS FAILING TO ATTRACT ENOUGH TRADING VOLUME TO PAY ITS OPERATING EXPENSES REUTERS HAS MADE IT QUITE CLEAR THAT THEY DO NOT WANT TO CONTINUE ON GLOBEX AS IT IS CURRENTLY COMPOSED SAID JOHN F SANDNER CHAIRMAN OF BOTH THE CME AND GLOBEX ITSELF WE'RE MEETING TO STRUCTURE A NEW MODEL FOR GLOBEX SO THAT REUTERS WILL AGREE TO KEEP THE SYSTEM IN BUSINESS THE REASON FOR THE CBOT'S EXCLUSION FROM THE GLOBEX TALKS MR SANDNER SAID IS THAT THE CBOT WON'T AGREE TO CONDITIONS REUTERS HAS STIPULATED FOR THE GLOBEX SYSTEM IN THE FUTURE BOB CROOK A SPOKESMAN FOR REUTERS IN NEW YORK DECLINED TO COMMENT MR SANDNER HAS PROPOSED RESTRUCTURING GLOBEX IN AN EFFORT TO RESHAPE GLOBEX BY APRIL WHEN REUTERS HAS THE RIGHT TO TERMINATE THE SYSTEM IF ITS TRADING VOLUME IS LESS THAN 50000 FUTURES CONTRACTS A DAY AT PRESENT AVERAGE DAILY VOLUME ON GLOBEX IS ABOUT 30000 CONTRACTS MR SANDNER'S PLAN CALLS FOR ALL EXCHANGES PARTICIPATING IN GLOBEX TO ABANDON DEVELOPMENT OF ELECTRONIC SYSTEMS THAT COULD COMPETE WITH GLOBEX THE PLAN ALSO CALLS FOR SEAMLESS TRADING A BUZZWORD THAT MEANS PARTICIPATING EXCHANGES WOULD HAVE TO OFFER THEIR FUTURES CONTRACTS ON GLOBEX FOR AT LEAST 12 HOURS A DAY WHEN THEIR OWN MARKETS ARE CLOSED BOTH OF THESE REQUIREMENTS ARE PROBLEMATIC FOR THE CHICAGO BOARD OF TRADE THE CBOT IS DEVELOPING A LOCAL ELECTRONIC TRADING SYSTEM CALLED PROJECT A THAT POTENTIALLY COULD COMPETE WITH GLOBEX THE EXCHANGE ALSO RUNS AN EVENING TRADING SESSION THAT CONFLICTS WITH THE SEAMLESS TRADING PROVISION OF MR SANDNER'S PLAN TO PARTICIPATE IN GLOBEX UNDER MR SANDNER'S SCHEME THE CBOT LIKELY WOULD HAVE TO SCRAP BOTH OF THESE INITIATIVES IN A STATEMENT RELEASED YESTERDAY CBOT CHAIRMAN PATRICK H ARBOR SAID TRADERS AT HIS EXCHANGE SIMPLY ARE NOT IN A POSITION TO CAVE IN TO NEW DEMANDS FROM REUTERS AND THE CME AND IN A NEWS CONFERENCE LAST WEEK BOTH MR ARBOR AND CBOT PRESIDENT THOMAS DONOVAN ACKNOWLEDGED THAT IT IS POSSIBLE THE CBOT WILL LEAVE GLOBEX WHEN THE CURRENT CONTRACT FOR THE SYSTEM ENDS IN APRIL THE CBOT TRADES FUTURES AND OPTIONS CONTRACTS BASED ON US TREASURY BONDS AS WELL AS CONVENTIONAL COMMODITIES SUCH AS CORN AND SOYBEANS ALTHOUGH THESE CONTRACTS GENERATE HUGE TRADING VOLUME DURING REGULAR TRADING HOURS AT THE CBOT THEY TRADE AT A PACE OF ONLY ABOUT 1000 CONTRACTS A DAY ON GLOBEX 9401120093 940112 INTERNATIONAL JAPAN REFORMS' CHANCES TO PASS ARE INCREASING BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER NEARLY TWO MONTHS OF FLOUNDERING JAPAN'S RULING COALITION IS INCREASINGLY CONFIDENT OF WINNING FINAL APPROVAL OF SWEEPING ELECTORAL REFORMS THIS MONTH TALK OF SNAP ELECTIONS AND PENDING POLITICAL CHAOS IS RECEDING THAT'S A WELCOME MOOD CHANGE FOR JAPAN'S JITTERY FINANCIAL MARKETS AND FOR THE CLINTON ADMINISTRATION WHICH HAS GROWN INCREASINGLY WORRIED THAT ONGOING BILATERAL TRADE NEGOTIATIONS COULD GET STUCK IN TOKYO'S DOMESTIC QUAGMIRE SUCCESS ISN'T YET GUARANTEED BUT ANALYSTS AND POLITICIANS EVEN MANY OPPOSITION LEADERS SAY THE ODDS HAVE RISEN SHARPLY IN THE PAST WEEK THE BILLS ARE AIMED AT CURBING POLITICAL CORRUPTION AND REWRITING THE ELECTORAL MAP THE CLIMATE IS CHANGING SAID YUJI TSUSHIMA A SENIOR MEMBER OF THE OPPOSITION LIBERAL DEMOCRATIC PARTY WHICH HAS BEEN TRYING TO BLOCK THE BILLS REFORM HAS A GOOD CHANCE A BIG REASON IS THAT THE LDP'S CAMPAIGN TO DISCREDIT PRIME MINISTER MORIHIRO HOSOKAWA APPEARS TO HAVE FIZZLED WITH THE ECONOMY WEAKENING AND THE STOCK MARKET FALLING LDP LEADERS TRIED TO ARGUE THAT POLITICAL REFORM SHOULD WAIT UNTIL AFTER EMERGENCY ECONOMIC MEASURES WERE DRAFTED AND THAT MR HOSOKAWA WAS TOO INEXPERIENCED TO HANDLE THAT THEY USED SUCH LOGIC IN DECEMBER TO GRIND PARLIAMENTARY BUSINESS TO A HALT BUT WHEN LDP MEMBERS VISITED THEIR HOME DISTRICTS OVER THE NEW YEAR HOLIDAY MANY WERE CRITICIZED BY CONSTITUENTS WE THOUGHT THAT IF WE INSIST ON FISCAL MEASURES FIRST THE PEOPLE WOULD AGREE WITH US SAID TETSUO KONDO A FORMER CABINET MINISTER UNDER THE LDP BUT EVEN OUR BUSINESS FRIENDS WHO THINK ECONOMIC MEASURES ARE MORE IMPORTANT THAN POLITICAL REFORM APPEAR TO HAVE CHANGED THEIR MIND THEY SAY FIRST PASS REFORM THEN DISCUSS THE BUDGET THE LDP HAD BOYCOTTED EARLIER PARLIAMENTARY DEBATES OVER REFORM BUT IS NOW ATTENDING SUCH SESSIONS LDP LEADERS WHO HAD REFUSED TO DISCUSS THE MATTER WITH THE RULING COALITION NOW SAY THEY ARE DRAFTING THEIR OWN COMPROMISE PROPOSALS THE GOVERNMENT THIS WEEK DECIDED TO SCHEDULE A FINAL VOTE ON THE BILLS IN PARLIAMENT'S UPPER HOUSE AS SOON AS NEXT WEEK AND EVEN HOPES TO GET SOME LDP BACKING THE BILLS PASSED THE LOWER HOUSE IN NOVEMBER THE BIGGEST QUESTION REMAINS THE SOLIDARITY OF THE SOCIALIST PARTY WHICH IS THE LARGEST BUT MOST UNSTABLE BLOC IN THE RULING COALITION THE PARTY DECIDED AT ITS ANNUAL CONVENTION TUESDAY TO CONTINUE SUPPORTING MR HOSOKAWA BUT THE SENTIMENT WASN'T UNANIMOUS WITH SOME MEMBERS FREQUENTLY JEERING THE LEADERSHIP SOME SOCIALISTS FEAR THAT BY JOINING THE COALITION THEY HAVE SACRIFICED MANY OF THE PARTY'S PRINCIPLES AND THAT THE PROPOSED REFORMS WILL FURTHER WEAKEN THE PARTY STILL EVEN WITHIN THE SOCIALISTS THE SPIRIT SEEMS TO HAVE CHANGED A MONTH AGO SOME ANALYSTS WERE SAYING AS MANY AS 20 SOCIALISTS WOULD VOTE AGAINST THE REFORMS MAKING PASSAGE UNLIKELY NOW THE CONVENTIONAL WISDOM IS THAT AS FEW AS FIVE WILL IN THE END DEFY THEIR LEADERS TOSHIKO SHINOZAKI A SOCIALIST MEMBER OF THE UPPER HOUSE SAID SHE PERSONALLY OPPOSES THE BILLS BUT IS NOW STRONGLY CONSIDERING VOTING FOR THEM WE ARE TRYING NOT TO BREAK UP THE COALITION SHE EXPLAINED 9401120092 940112 WHITE HOUSE PROPOSES RULES AIMED AT SPURRING COMMUNICATIONS NETWORKS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE CLINTON ADMINISTRATION PROPOSED EXEMPTING TELECOMMUNICATIONS COMPANIES FROM SOME STATE AND LOCAL REGULATIONS IF THEY SET UP VIDEO AND INFORMATION NETWORKS THAT ARE OPEN TO ALL PROGRAMMING UNDER THE PLAN UNVEILED IN A SPEECH HERE BY VICE PRESIDENT AL GORE CABLETELEVISION COMPANIES AND LOCAL TELEPHONE COMPANIES THAT VENTURE INTO EACH OTHER'S BUSINESSES COULD OPT OUT OF THE CURRENT JUMBLE OF LOCAL STATE AND FEDERAL REGULATIONS FOR THEIR SEPARATE INDUSTRIES INSTEAD THEY WOULD BE GOVERNED BY A UNIFORM NEW SET OF REGULATIONS CALLED TITLE 7 THE FEDERAL COMMUNICATIONS COMMISSION WOULD ADOPT GUIDELINES FOR REGULATION UNDER THE NEW SECTION OF TELECOMMUNICATIONS LAW WHILE PROMISING SIMILAR REGULATORY TREATMENT FOR TELEPHONE AND CABLETV COMPANIES THAT MOVE INTO EACH OTHER'S BUSINESSES MR GORE'S LONGAWAITED SPEECH TO ENTERTAINMENT EXECUTIVES LEFT VAGUE JUST HOW TITLE 7 WOULD WORK ADMINISTRATION OFFICIALS SAID AFTERWARD THAT THE FCC WOULD HAVE TO FIGURE OUT JUST WHO WOULD BE ELIGIBLE AND WHO WOULD POLICE THE NEW SERVICES JUDGING FROM A WHITE PAPER THE ADMINISTRATION RELEASED WITH THE SPEECH STATE AND LOCAL REGULATORS WOULD CONTINUE TO PLAY A ROLE BUT THEY WOULD HAVE TO ADHERE TO THE FCC'S GUIDELINES MITCHELL KAPOR FOUNDER OF LOTUS DEVELOPMENT CORP AND CHAIRMAN OF THE ELECTRONIC FRONTIER FOUNDATION SAID THE NEW SERVICES COULD BE VIDEO VERSIONS OF INTERNET A NETWORK ON WHICH SUBSCRIBERS CAN POST AND RETRIEVE TEXT MESSAGES WHILE NO COMPANY CURRENTLY PROVIDES THAT LEVEL OF ACCESS TO COMMUNITY GROUPS AND OTHER WOULDBE VIDEO PROGRAMMERS MR KAPOR SAID BELL ATLANTIC CORP AND PACIFIC TELESIS GROUP ARE MOVING IN THAT DIRECTION STILL EVEN THOSE COMPANIES' LEADERS WHO ATTENDED YESTERDAY'S SPEECH SEEMED BAFFLED BY THE TITLE 7 CONCEPT NONE OF US REALLY KNOW WHAT THAT'S ALL ABOUT SAID RAYMOND SMITH CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC WE DON'T KNOW ALL THAT'S BEING SUGGESTED PHILIP J QUIGLEY INCOMING CHIEF EXECUTIVE OF PACIFIC TELESIS SAID BUT WE'RE GOING TO EXPLORE WHATEVER TITLE 7 IS THE SPEECH WAS PART OF A DAYLONG SUPERHIGHWAY SUMMIT SPONSORED BY THE ACADEMY OF TELEVISION ARTS & SCIENCES AND SPRINKLED WITH HOLLYWOOD GLITZ HIGHPOWERED HOLLYWOOD EXECUTIVES SUCH AS RUPERT MURDOCH CHAIRMAN OF NEWS CORP AND MICHAEL D EISNER CHAIRMAN OF WALT DISNEY CO ATTENDED TRADING GIBES ABOUT THEIR LATEST VENTURES TALKSHOW HOST DICK CAVETT HOSTED ONE PANEL DISCUSSION AND ACTRESS LILY TOMLIN APPEARED ON CUE IN HER TELEPHONEOPERATOR GETUP TO JOIN MR GORE ON STAGE AFTER HE MADE REFERENCE TO THE WHITE HOUSE'S ANTIQUATED SWITCHBOARD IN HIS SPEECH THE VICE PRESIDENT SAID THE FCC WOULD BE GIVEN THE POWER TO REDUCE REGULATION FOR TELECOMMUNICATIONS CARRIERS IN MARKETS THAT ARE COMPETITIVE THE 1992 CABLE ACT PROVIDED THAT CABLE COMPANIES COULD BE EXEMPT FROM RATE REGULATION IF THEY FACE COMPETITION MR GORE APPEARED TO EXTEND THE PRINCIPLE TO TELEPHONE SERVICE AS WELL BUT HE TOOK ONLY SMALL STEPS TOWARD TAKING POSITIONS ON THE TOUGH ISSUES FACING LAWMAKERS AS THEY ATTEMPT TO RESTRUCTURE TELECOMMUNICATIONS LAWS TO MAKE IT EASIER FOR CABLETV TELEPHONE AND LONGDISTANCE COMPANIES TO COMPETE AGAINST ONE ANOTHER FOR EXAMPLE MR GORE CHALLENGED TELECOMMUNICATIONS COMPANIES TO CONNECT ALL CLASSROOMS HOSPITALS LIBRARIES AND CLINICS TO THE SOCALLED INFORMATION SUPERHIGHWAY BY THE YEAR 2000 AND HE PRAISED BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC FOR PLEDGING MONDAY TO WIRE SCHOOLS FREE BUT HE AGAIN DEFERRED DECISIONS ON DETAILS OF HOW TO ENSURE AFFORDABLE SERVICE FOR ALL AMERICANS INSTEAD THE WHITE PAPER SAID THE ADMINISTRATION WOULD ESTABLISH A FEDERALSTATE BOARD TO MAKE RECOMMENDATIONS ON UNIVERSAL SERVICE THE ADMINISTRATION ALSO HEDGED ON THE QUESTION OF CROSSOWNERSHIP MR GORE SAID IT GENERALLY WON'T ALLOW TELEPHONE COMPANIES TO BUY CABLE COMPANIES IN THEIR OWN SERVICE AREAS BUT THE WHITE PAPER RELEASED YESTERDAY SAID THE FCC EVENTUALLY COULD ALLOW SUCH TRANSACTIONS IF THERE'S ENOUGH COMPETITION IT DIDN'T INDICATE HOW THAT WOULD BE MEASURED THOUGH MR GORE ALSO SAID THE ADMINISTRATION'S PLAN WOULD PREEMPT STATE REGULATIONS THAT KEEP CABLE COMPANIES OUT OF LOCAL TELEPHONE SERVICE BUT ASKED ABOUT THAT ISSUE JUST LAST WEEK COMMERCE SECRETARY RON BROWN SAID THAT PRESIDENT CLINTON A FORMER GOVERNOR GETS NERVOUS ABOUT THE IDEA OF PREEMPTING STATE REGULATIONS INDUSTRY REACTION TO THE SPEECH WAS GENERALLY FAVORABLE BUT INDUSTRY REPRESENTATIVES SAID THEY STILL NEED TO SEE MORE DETAILS A LOT OF THIS IS JUST IDLE PATTER UNTIL THEY FILE THE BILL SAID PETER BERNSTEIN A TELECOMMUNICATIONS ANALYST WITH PROBE RESEARCH WE APPLAUD THE CLINTON ADMINISTRATION'S COMMITMENT TO 'REGULATORY SYMMETRY' IN ITS APPROACH TO DIFFERENT SEGMENTS OF THE TELECOMMUNICATIONS INDUSTRY A SPOKESMAN FOR THE REGIONAL TELEPHONE COMPANIES SAID THE SPOKESMAN SAID CURRENT RULES SHOULD BE CHANGED IMMEDIATELY THE NATIONAL CABLE TELEVISION ASSOCIATION ALSO PRAISED THE SPEECH BUT REPEATED THAT THE ENTRY OF BABY BELLS INTO CABLETV SHOULD BE CAREFULLY STAGED BECAUSE OF THE GREATER FINANCIAL STRENGTH OF THE TELEPHONE COMPANIES THE CABLETV INDUSTRY HAS CALLED FOR A GRACE PERIOD OF ABOUT SEVEN YEARS MR GORE DIDN'T TAKE A SIDE ON THAT ISSUE BUT DID CONVEY SOME SYMPATHY FOR THE CABLE INDUSTRY'S POSITION A STARTUP TELEPHONE COMPANY ISN'T THE SAME AS A BABY BELL HE SAID WHAT WE FAVOR IS GENUINE REGULATORY SYMMETRY THE VICE PRESIDENT SAID THE ADMINISTRATION WILL FILE LEGISLATION IN SHORT ORDER ADMINISTRATION OFFICIALS INSISTED DIFFERENT INDUSTRY GROUPS AREN'T FAR APART ON THE REMAINING ISSUES THOUGH THEY HAVE BEEN FIGHTING OVER SIMILAR ISSUES FOR A DECADE THE OFFICIALS ALSO INSISTED THAT THE TELECOMMUNICATIONS INITIATIVE WON'T GET LOST AMONG THE CLINTON ADMINISTRATION'S OTHER REFORM EFFORTS WHICH INCLUDE HEALTHCARE AND WELFARE PROGRAMS THEY SAID PROMOTING A NATIONAL INFORMATION INFRASTRUCTURE AS THE ADMINISTRATION PUTS IT WILL HELP REDUCE HEALTHCARE COSTS BY MAKING NEW HEALTHCARE INFORMATION SERVICES AVAILABLE STILL THE ADMINISTRATION HAS TAKEN CARE NOT TO OFFEND LEGISLATORS WHO HAVE ALREADY FILED TELECOMMUNICATIONSREFORM BILLS MR GORE SAID HE ENDORSES BASIC PRINCIPLES OF A BILL FILED LAST MONTH BY REPS JACK BROOKS D TEXAS AND JOHN DINGELL D MICH TO LET THE BELL COMPANIES OFFER LONGDISTANCE AND INFORMATION SERVICES THE ADMINISTRATION ALSO SAID IT SUPPORTS ALLOWING BABY BELL COMPANIES TO MANUFACTURE EQUIPMENT THROUGH SEPARATE SUBSIDIARIES 9401120091 940112 ENTREPRENEURS ARE TEMPTING TARGETS FOR FRAUD BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL ENTREPRENEURS' NEEDS FOR IDEAS AND CAPITAL CAN MAKE THEM EASY PREY FOR VETERAN CRIMINALS THAT'S WHAT ALLEGEDLY HAPPENED TO BRUCE ARTHUR A REDONDO BEACH CALIF ENTREPRENEUR LOOKING FOR FINANCING FOR A HAZARDOUSWASTE BUSINESS MR ARTHUR WAS VERY IMPRESSED BY C EARL BROWN'S BUSINESS ACUMEN WHEN IT CAME TO TALKING FINANCE RECALLS MR ARTHUR MR BROWN WAS PROBABLY THE SMARTEST GUY I EVER MET SO IMPRESSED WAS MR ARTHUR THAT HE PAID MR BROWN AND A COLLEAGUE 19000 LAST YEAR TO HELP HIM SECURE 12 MILLION HOWEVER ACCORDING TO AN INDICTMENT FILED LAST WEEK IN A ST LOUIS FEDERAL COURT MR BROWN AND THREE OTHER MEN DEFRAUDED MR ARTHUR AND TWO DOZEN OTHER ENTREPRENEURS OF MORE THAN 230000 BY MAKING FALSE PROMISES TO HELP THEM ARRANGE BUSINESS FINANCING THREE OF THE FOUR DEFENDANTS INCLUDING MR BROWN HAVE PLEADED NOT GUILTY THE FOURTH HASN'T ENTERED A PLEA AND HIS ATTORNEY DECLINED TO COMMENT THE ALLEGED FRAUD WAS BASED IN ST LOUIS MR ARTHUR AND OTHER ENTREPRENEURS WEREN'T DUPED BY ROOKIES LAWENFORCEMENT OFFICIALS SAY MR BROWN AND TWO OTHER DEFENDANTS JOEL GINSBURG AND WILLIAM FOX HAVE CRIMINAL RECORDS DATING BACK MORE THAN 20 YEARS THESE OFFICIALS SAY EACH MAN HAS BEEN CONVICTED AT LEAST ONCE FOR FINANCIAL CRIMES THE ST LOUIS INDICTMENT SUGGESTS HOW VETERAN SCAMMERS CAN REPEATEDLY BILK OWNERS OF SMALL BUSINESSES LAWENFORCEMENT OFFICIALS AND OTHERS SAY CAREER CROOKS ACCOUNT FOR A SIGNIFICANT PORTION OF THE HUNDREDS OF MILLIONS OF DOLLARS LOST ANNUALLY BY VICTIMS OF WHITECOLLAR CRIME BUT THE CASE ALSO SUGGESTS THAT SAVVY ENTERPRENEURS CAN PROTECT THEMSELVES ENTREPRENEURS ARE A RIPE GROUP FOR CROOKS SETTING UP REPEAT SCAMS SAYS SHIRLEY ROOKER PRESIDENT OF CALL FOR ACTION INC A NONPROFIT WATCHDOG GROUP IN WASHINGTON DC SMALLBUSINESS OWNERS OFTEN LACK TIME TO THOROUGHLY CHECK OUT PEOPLE WITH WHOM THEY DO BUSINESS EXPERTS NOTE ONE POPULAR SMALLBUSINESS FRAUD IS THE ADVANCEFEE LOAN SCHEME WHICH ALLEGEDLY OCCURRED TO MR ARTHUR IN SUCH A SCAM ENTREPRENEURS PAY PROMOTERS TO GET LOANS THAT NEVER MATERIALIZE ANOTHER FRAUD INVOLVES THE SALE OF BOGUS BUSINESS OPPORTUNITIES FOR A FEE A PROMOTER PROMISES TO SET UP A WOULDBE ENTREPRENEUR IN A HOT NEW VENTURE BUT NEVER INTENDS TO DELIVER THE FLORIDA ATTORNEY GENERAL'S OFFICE IS INVESTIGATING A BUSINESSOPPORTUNITY VENTURE KNOWN AS NAKAMOTO INDUSTRIES INC OF MIAMI ACCORDING TO A SUBPOENA FILED IN SEPTEMBER BY STATE OFFICIALS IN A BROWARD COUNTY COURT NAKAMOTO SOLD DISTRIBUTORSHIPS FOR PORTABLE HEARTMONITORING MACHINES DURING 1992 AND 1993 MORE THAN A DOZEN ENTREPRENEURS NATIONWIDE PAID THE FIRM A TOTAL OF MORE THAN 100000 SEVERAL HAVE COMPLAINED TO STATE INVESTIGATORS THAT NAKAMOTO FAILED TO FULFILL PROMISES TO SUPPLY EQUIPMENT TRAINING AND ASSISTANCE I NEVER GOT ANYTHING BUT GRIEF FOR MY 12500 SAYS ROBERT MOTLEY A JACKSONVILLE FLA ENTERPRENEUR THE ENTREPRENEURS AND STATE INVESTIGATORS SAY THEY BELIEVE THE PRIME MOVER BEHIND NAKAMOTO WAS ALAN B NACHAMIE WHO OPERATED UNDER THE NAME DR ALAN BARTON MR NACHAMIE WAS A NEW YORK CHIROPRACTOR UNTIL HIS LICENSE WAS REVOKED IN 1982 FOLLOWING FEDERAL AND STATE CONVICTIONS FOR MEDICARE FRAUD AND CONSPIRACY TO BURN DOWN TWO MEDICAL BUILDINGS AS PART OF AN INSURANCE SCAM ACCORDING TO DOCUMENTS FILED WITH NEW YORK'S DIVISION OF PROFESSIONAL LICENSING SERVICES MR NACHAMIE DIDN'T RETURN CALLS SEEKING COMMENT EDWIN TUNICK NAKAMOTO'S SECRETARY AND TREASURER SAYS THE FIRM IS HONEST BUT HAS HAD BUSINESS PROBLEMS AND IS TRYING TO REORGANIZE HE SAYS IT IS COOPERATING WITH FLORIDA INVESTIGATORS BUT THE RELATIVELY SMALL AMOUNT OF INVESTOR MONEY INVOLVED COULD HAMPER PROSECUTION OF NAKAMOTO SAY PEOPLE FAMILIAR WITH THE INVESTIGATION IN THE ST LOUIS INDICTMENT OF MESSRS BROWN GINSBURG AND FOX FEDERAL PROSECUTORS ALSO WERE INITIALLY LUKEWARM BECAUSE OF THE RELATIVELY SMALL AMOUNT OF MONEY INVOLVED SAYS AN INDIVIDUAL FAMILIAR WITH THAT CASE THIS INDIVIDUAL SAYS INTEREST PERKED UP WHEN INVESTIGATORS LEARNED OF THE THREE DEFENDANTS' CRIMINAL BACKGROUNDS MR BROWN'S CRIMINAL RECORD GOES BACK TO THE EARLY 1970S WITH THE INFAMOUS BANK OF SARK A PHONY OFFSHORE INSTITUTION THAT CHURNED OUT MILLIONS OF DOLLARS OF WORTHLESS FINANCIAL DOCUMENTS MR BROWN AND MR FOX WERE INDICTED FOR FRAUD BY A ST LOUIS FEDERAL COURT ALONG WITH PHILIP M WILSON A CENTRAL FIGURE IN THE BOGUS BANK MR BROWN AND MR WILSON PLEADED GUILTY TO CONSPIRACY AND MAIL FRAUD CHARGES CHARGES AGAINST MR FOX WERE DISMISSED THE THREE MEN RESURFACED TOGETHER IN 1990 WHEN A FLORIDA STATE COURT IN BROWARD COUNTY CONVICTED THEM IN CONNECTION WITH AN ADVANCEFEE LOAN SCHEME INVOLVING NUMEROUS SMALL BUSINESSES MR BROWN RECEIVED PROBATION AND MESSRS FOX AND WILSON PRISON SENTENCES BOTH HAVE BEEN RELEASED LAWENFORCEMENT OFFICIALS SAY MR GINSBURG A DEFENDANT IN THE ST LOUIS INDICTMENT HAS TWO CRIMINAL CONVICTIONS OFFICIALS SAY THE MOST RECENT IN 1980 WAS FOR WIRE FRAUD IN CONNECTION WITH A US SMALL BUSINESS ADMINISTRATION LOAN SCAM MR GINSBURG SENTENCED TO UP TO THREE YEARS IN PRISON WAS RELEASED IN 1982 IN THE ST LOUIS CASE THE DEFENDANTS ADVERTISED IN NEWSPAPERS INCLUDING THE WALL STREET JOURNAL AND OFTEN USED ALIASES WHEN POSING AS WELLHEELED INVESTORS ACCORDING TO THE CRIMINAL INDICTMENT A JOURNAL SPOKESMAN SAID HE WASN'T FAMILIAR WITH THE SPECIFICS OF THE CASE BUT ADDED THAT THE PAPER'S POLICY IS TO MAKE EVERY EFFORT TO ENSURE THE ACCURACY AND HONESTY OF ADS IT PUBLISHES APPARENTLY THE DEFENDANTS DIDN'T ALWAYS ASK FOR BIG ADVANCE FEES FOR ARRANGING FINANCING MICHAEL DYSON OF DURANT OKLA RECALLS MR BROWN SAYING THAT HE WAS WILLING TO WORK FOR A FEW HUNDRED DOLLARS OF EXPENSES UNTIL MR DYSON SECURED THE 10 MILLION NEEDED FOR A PROPOSED REALESTATE DEVELOPMENT BUT MR DYSON ENDED UP PAYING MORE THAN 6000 IN EXPENSES AND FEES WITHOUT LANDING THE FINANCING THE INDICTMENT ALLEGES THEY SUCKED ME IN MR DYSON SAYS DEAN RESKEVICH AN INDIANAPOLIS ENTREPRENEUR SAYS HE RECOVERED ABOUT HALF OF THE 12000 HE PAID SOME OF THE DEFENDANTS AFTER DEMANDING RECEIPTS FOR PURPORTED TRAVEL EXPENSES AND FINDING DISCREPENCIES CONCERNING THE CITIES WHERE THEY CLAIMED TO BE ON CERTAIN DAYS MR RESKEVICH SAYS HE NEEDED 1 MILLION TO REFINANCE HIS SMALL TELECOMMUNICATIONS BUSINESS BESIDES SEEKING DOCUMENTATION ENTREPRENEURS CAN TAKE OTHER STEPS TO PROTECT THEMSELVES AGAINST BEING DEFRAUDED BY VETERAN CRIMINALS LAWENFORCEMENT OFFICIALS SAY FOR EXAMPLE A NATIONAL COMPUTER DATABASE CALLED THE CENTRAL REGISTRATION DEPOSITORY LISTS ABOUT 400000 INDIVIDUALS INVOLVED IN SECURITIES AND OTHER FINANCIAL ARENAS SAYS SCOTT STAPF INVESTOREDUCATION DIRECTOR FOR THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION A WASHINGTON GROUP THAT REPRESENTS STATE REGULATORS THE DATABASE INCLUDES EXTENSIVE FILES ON CRIMINAL AND CIVIL ACTIONS MANY STATE SECURITIES OFFICES WILL SEARCH THE DATABASE FOR FREE MR STAPF CONTINUES IF YOU ARE DEALING WITH SOMEONE WHO IS A SWINDLER YOU COULD FIND THAT OUT VERY QUICKLY 9401120090 940112 ABREAST OF THE MARKET INDUSTRIAL AVERAGE DROPS 1520 FOR THE FIRST DECLINE OF THE YEAR BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER SIX STRAIGHT GAINS AND FOUR RECORDS THE DOW JONES INDUSTRIAL AVERAGE FINALLY MOVED LOWER AS INVESTORS LOCKED IN PROFITS THE INDUSTRIAL AVERAGE FELL 1520 OR 039 TO 385031 ITS FIRST DECLINE THIS YEAR EVEN WITH THE LOSS THE AVERAGE WHICH SURGED NEARLY 45 POINTS MONDAY IS STILL UP 96 POINTS OR 26 YEARTODATE WE CERTAINLY HAVE NEEDED A PAUSE IN THE UPTREND AND I WOULD HOPE THERE ARE A FEW MORE DAYS OF CONSOLIDATION TO COME SAID TRUDE LATIMER A VICE PRESIDENT AT WAYNE GRAYSON CAPITAL RUNNING TOO FAR TOO FAST CAN LEAVE THE MARKET VULNERABLE TO A STEEP SLIDE SHE SAID BROADBASED INDEXES ALSO RETREATED AND DECLINING STOCKS LED ADVANCERS 1145 TO 1004 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE BIG BOARD TOPPED 300 MILLION FOR A SIXTH STRAIGHT SESSION TOTALING 304614870 DOWN FROM MONDAY'S 317598200 ANALYSTS SAID THERE WASN'T ANY NEWS TO TRIGGER THE PROFITTAKING WHICH CAME DESPITE SOLID ACTION IN THE BOND MARKET CYCLICAL ISSUES WHICH LED THE RALLY OVER THE PAST SEVERAL DAYS REMAINED STEADY AMID THE GENERAL SELLING BIGGROWTH ISSUES SUCH AS CONSUMER PRODUCTS MAKERS AND DRUG COMPANIES WERE AMONG THE WEAKEST WHILE MINNESOTA MINING & MANUFACTURING JUMPED 1 3/4 TO 109 3/4 AND CATERPILLAR INCHED UP 1/8 TO 90 5/8 COCACOLA FELL 5/8 TO 42 3/4 PHILIP MORRIS SLIPPED 5/8 TO 58 3/8 PROCTER & GAMBLE EASED 3/8 TO 58 1/2 AND MERCK & CO DROPPED 3/8 TO 37 1/4 THOMAS MCMANUS A MARKET STRATEGIST AT MORGAN STANLEY & CO SAID THE BUOYANCY OF THE ECONOMICALLY SENSITIVE STOCKS RELATIVE TO CONSUMER PRODUCTORIENTED GROWTH ISSUES REFLECTS INVESTORS' BELIEF THAT CYCLICALS HAVE HAD THE STRONGEST EARNINGS GROWTH BEGINNING NEXT WEEK AND CONTINUING THROUGH EARLY FEBRUARY INVESTORS WILL BE SWAMPED WITH PROFIT REPORTS FOR THE FOURTH QUARTER THE STANDARD & POOR'S 500STOCK INDEX LOST 114 OR 024 TO 47413 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED 050 OR 019 TO 26226 AND THE DOW JONES EQUITY MARKET INDEX SLIPPED 095 OR 021 TO 44872 ALL THREE HAD SET RECORDS MONDAY THERE WERE 1145 DECLINERS AND 1004 ADVANCERS THE NASDAQ COMPOSITE INDEX EASED 117 OR 015 TO 78552 HURT BY SLUMPING TECHNOLOGY COMMUNICATIONS HEALTHCARE AND TRANSPORTATION ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX THOUGH ADVANCED 059 OR 012 TO 47937 SHARES OF THE MAJOR AUTO MAKERS WERE HIGHER AGAIN FORD MOTOR JUMPED 1 TO 68 1/4 AND CHRYSLER GAINED 7/8 TO 59 5/8 GENERAL MOTORS THOUGH EDGED UP JUST 1/4 TO 59 1/2 A GM TRUCK PLANT IN SHREVEPORT LA WAS IDLED BY STRIKING UNITED AUTO WORKERS UNION MEMBERS THE BIG THREE'S SHARES WERE AMONG THE LEADERS IN MONDAY'S RUNUP AMERICAN EXPRESS JUMPED 1 1/4 TO 30 3/4 THE FINANCIALSERVICES CONCERN IS EXPECTED TO INTRODUCE A CREDIT CARD FOR CORPORATE PURCHASES TODAY TOYS R US ADDED 1/2 TO 38 3/4 AFTER THE PARAMUS NJ RETAILER SAID IT WILL REPURCHASE AS MUCH AS 1 BILLION OF ITS COMMON STOCK OVER SEVERAL YEARS SEPARATELY IT DISCLOSED PLANS TO OPEN 115 COMPANYOWNED STORES IN THE US AND ABROAD AND TO FRANCHISE ADDITIONAL STORES OVERSEAS ALUMINUM CO OF AMERICA SLIPPED 2 1/2 TO 71 5/8 EXCLUDING EXTRAORDINARY CHARGES THE PITTSBURGH COMPANY HAD A LOSS OF 20 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH PROFIT BEFORE CHARGES OF 57 CENTS A YEAR AGO TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS ADDED 1 TO 66 1/2 ON BIG BOARDLEADING VOLUME OF 57 MILLION SHARES SHARES ON THE MEXICAN STOCK EXCHANGE REBOUNDED FROM A 6 PLUNGE MONDAY CAUSED BY WORRIES OVER REBEL ACTIVITY IN THAT COUNTRY ORACLE CONTINUED TO CLIMB RISING 1 3/4 TO 34 7/8 ON THE NASDAQ STOCK MARKET THE STOCK JUMPED 1 3/8 MONDAY ON NEWS THE REDWOOD CITY CALIF COMPANY WAS SELECTED TO PROVIDE MULTIMEDIA GEAR AND SOFTWARE TO BELL ATLANTIC THAT STOCK EASED 1/4 TO 55 7/8 ESYSTEMS CLIMBED 2 TO 42 3/4 AFTER A KIDDER PEABODY ANALYST MADE POSITIVE COMMENTS ABOUT THE COMPANY AND SAID HE EXPECTS THE DALLAS CONCERN TO ANNOUNCE AN ACQUISITION EARLY THIS QUARTER AN ESYSTEMS SPOKESMAN HAD NO COMMENT HARTFORD STEAM BOILER INSPECTION & INSURANCE ROSE 1 3/4 TO 48 1/4 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN SAID SOME ANALYSTS ARE OPTIMISTIC ABOUT A TURNAROUND AT THE INSURER WHOSE SHARES LOST ALMOST 24 LAST YEAR USAIR SLIPPED 1/4 TO 13 1/8 A FEDERAL JUDGE RULED THE ARLINGTON VA AIRLINE WAS NEGLIGENT IN A MARCH 1992 AIRLINER CRASH AT NEW YORK'S LA GUARDIA AIRPORT THAT KILLED 27 PEOPLE A JURY WILL CONSIDER LEVYING PUNITIVE DAMAGES AGAINST USAIR THE LEVEL OF COMPENSATORY DAMAGES HASN'T BEEN SET SCHLUMBERGER FELL 1 3/8 TO 59 1/2 AFTER DONALDSON LUFKIN & JENRETTE DOWNGRADED A RATING ON THE NEW YORK OILFIELD SERVICES COMPANY'S STOCK TO NEUTRAL FROM ACCUMULATE PARKER & PARSLEY DROPPED 1 TO 24 1/2 CS FIRST BOSTON CUT ITS OPINION ON SHARES OF THE MIDLAND TEXAS OIL AND GAS EXPLORATION AND PRODUCTION CONCERN TO HOLD FROM BUY BIOGEN ROCKETED 5 TO 46 1/4 VECTOR SECURITIES SAID THE DATA FROM THE CAMBRIDGE MASS COMPANY'S PHASE THREE CLINICAL TRIALS OF A TREATMENT FOR MULTIPLE SCLEROSIS LIKELY WILL BE AVAILABLE IN THE THIRD QUARTERNINE MONTHS EARLIER THAN VECTOR HAD EXPECTED THE FIRM RAISED ITS RATING ON BIOGEN SHARES TO BUY FROM NEUTRAL BARNETT BANKS FELL 1 1/8 TO 41 5/8 AND SUNTRUST BANKS SLIPPED 3/8 TO 45 3/8 BOTH COMPANIES REPORTED IMPROVED FOURTHQUARTER EARNINGS BUT THE RESULTS WERE JUST SHY OF THE MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM 9401120089 940112 TECHNOLOGY LIPOSOME MARKET APPLICATIONS PRINCETON NJ LIPOSOME CO SAID IT FILED MARKETING APPLICATIONS IN SIX EUROPEAN COUNTRIES FOR ITS AMPHOTERICIN B LIPID COMPLEX OR ABLC USED IN THE PREVENTION OF FUNGAL INFECTIONS LIPOSOME ALSO SAID IT BEGAN A NEW PHASE II AND PHASE III CLINICAL TRIAL IN THE US IN THE PREVENTION OF FUNGAL INFECTIONS IN PATIENTS UNDERGOING BONE MARROW TRANSPLANTS THE COMPANY WHICH SPECIALIZES IN DEVELOPING LIPOSOME AND LIPIDBASED PHARMACEUTICALS SAID IT EXPECTS TO FILE MARKETING APPLICATIONS FOR ABLC IN 10 ADDITIONAL COUNTRIES THIS YEAR 9401120088 940112 INTERNATIONAL A MORE ASSERTIVE RUSSIA AWAITS CLINTON AS POLITICAL WINDS CHANGE GAINS BY NATIONALISTS MEAN YELTSIN MUST DISTANCE HIMSELF FROM THE US BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PRESIDENT CLINTON'S HONEYMOON WITH RUSSIAN PRESIDENT BORIS YELTSIN IS ABOUT TO COME TO AN END WHEN MR CLINTON ARRIVES IN MOSCOW TONIGHT HE WILL FIND HIMSELF IN A RUSSIA THAT HAS UNDERGONE PROFOUND POLITICAL CHANGES SINCE HE LAST MET MR YELTSIN IN TOKYO LAST OCTOBER RUSSIAN POLITICAL REALITIES NOW DEMAND THAT MR YELTSIN INCREASINGLY DISTANCE HIMSELF FROM THE US AT LEAST PUBLICLY ESPECIALLY ON FOREIGNPOLICY QUESTIONS STUNG BY CHARGES OF SELLING OUT RUSSIAN INTERESTS TO THE WEST MR YELTSIN HAS BEGUN INDICATING THAT RUSSIA HOPES TO FLEX ITS MUSCLES ON THE WORLD STAGE AS A GREAT POWER EQUAL IN STATUS TO THE US THE REASON FOR THE NEW ATTITUDE IS CLEAR RUSSIANS' SENSE OF INFERIORITY CONTRIBUTED TO THE STRONG SHOWING OF ULTRANATIONALIST VLADIMIR ZHIRINOVSKY IN LAST MONTH'S VOTING THE NEW ARM'SLENGTH RELATIONS NEEDN'T CAUSE ALARM IN WASHINGTON FOR THE US THE CHALLENGE WILL BE TO ADAPT TO A MORE ASSERTIVE RUSSIA WITHOUT OVERREACTING IT'S IN CLINTON'S INTEREST TOO IF RUSSIAN FOREIGN POLICY BECOMES MORE INDEPENDENT SAYS YEVGENY AMBARTSUMOV A FOREIGNPOLICY EXPERT AND MEMBER OF RUSSIA'S NEWLY ELECTED STATE DUMA WHICH CONVENED FOR THE FIRST TIME YESTERDAY HE ARGUES THAT IF RUSSIA FOLLOWS THE US LEAD IN ALL MAJOR FOREIGNPOLICY ISSUES IT WILL WORSEN THE BACKLASH AMONG NATIONALISTIC RUSSIANS IN PARTICULAR MR YELTSIN WANTS THE US TO GIVE RUSSIA LEEWAY IN DEALING WITH PROBLEMS IN THE SOCALLED NEAR ABROAD THE NEWLY INDEPENDENT FORMER SOVIET REPUBLICS MOSCOW WANTS TO PRESERVE THE RIGHT TO RESPOND TO THREATS TO THE MILLIONS OF RUSSIAN NATIONALS WHO LIVE JUST OUTSIDE THE COUNTRY'S BORDERS SOME RUSSIAN POLICY MAKERS ALSO ARE READY TO SPLIT WITH THE WEST ON POLICY TOWARD THE FORMER YUGOSLAVIA THE WEST HAS IMPOSED SANCTIONS AGAINST THE SERBS WITH WHOM MANY RUSSIANS FEEL SOLIDARITY YELTSIN IS TRYING TO COIN A VERSION OF LIBERAL NATIONALISM SAYS ANDREI KORTUNOV A FOREIGNPOLICY ANALYST AT THE INSTITUTE OF USA AND CANADA STUDIES IN MOSCOW IT DOESN'T EXCLUDE BROAD COOPERATION WITH THE WEST BUT IT EMPHASIZES THE NATIONAL INTERESTS OF RUSSIA ITSELF THE ZHIRINOVSKY PHENOMENON ALREADY HAS COMPLICATED USRUSSIAN RELATIONS AND WILL CAST A SHADOW OVER THE CLINTONYELTSIN TALKS THOUGH ESSENTIALLY A BLUSTERING DEMAGOGUE MR ZHIRINOVSKY AND HIS FACILE PRESCRIPTIONS FOR A STRONGER RUSSIA HAVE PROVEN ATTRACTIVE TO MILLIONS OF RUSSIANS WHO FEEL HUMILIATED BY THE SOVIET EMPIRE'S COLLAPSE AND BY A GENERAL SENSE OF ECONOMIC DESPAIR IT ISN'T CLEAR HOW REAL THE THREAT FROM THE FAR RIGHT IS BUT RUSSIA ALREADY HAS BEGUN TO PLAY THE ZHIRINOVSKY CARD TO GET ITS WAY ON THE INTERNATIONAL ARENA WITH A WARY EYE TOWARD RUSSIA THE WEST DECIDED TO SLOW PLANS TO INCLUDE SOME FORMER WARSAW PACT NATIONS IN THE NORTH ATLANTIC TREATY ORGANIZATION THE RATIONALE HAVING NATO MEMBERS ALONG RUSSIA'S BORDERS WOULD INTENSIFY RUSSIAN INSECURITY AND STRENGTHEN THE ZHIRINOVSKY TYPES THE US ALSO IS TAKING ITS OWN TENTATIVE STEPS TO DISTANCE ITSELF FROM MR YELTSIN BEFORE THE ELECTION THE TWO SIDES HAD HOPED THAT MR CLINTON'S VISIT TIMED AT THE START OF THE NEW PARLIAMENT WOULD AMOUNT TO A CELEBRATION OF RUSSIA'S NASCENT DEMOCRACY AND MR YELTSIN'S POLITICAL SUCCESS AFTER THE POOR SHOWING OF MR YELTSIN'S SUPPORTERS IN THE DECEMBER VOTE US POLICY MAKERS HAVE COME TO REALIZE THAT THE YELTSIN ERA COULD BE RELATIVELY SHORTLIVED THE GOAL NOW IS TO MEET AND CULTIVATE OTHER RUSSIAN LEADERS WHO SUPPORT ECONOMIC REFORMS AND WHO MAY ONE DAY HOLD TOP POSITIONS OF POWER THESE INCLUDE PEOPLE SUCH AS GRIGORY YAVLINSKY AN ECONOMIST AND NIKOLAI TRAVKIN HEAD OF THE DEMOCRATIC PARTY OF RUSSIA MR YELTSIN WILL FEEL PRESSURE TO SHOW THE US PRESIDENT THAT HE ISN'T A LAME DUCK YELTSIN WILL BE TRYING TO COMMUNICATE TO CLINTON THAT HE ISN'T AFRAID OF ZHIRINOVSKY AND THAT HE IS AS STRONG AS EVER SAYS MR KORTUNOV NOT SURPRISINGLY MR CLINTON HAS NO PLANS TO MEET MR ZHIRINOVSKY WHO ACCUSES THE US PRESIDENT OF INTERFERING IN RUSSIA'S INTERNAL AFFAIRS DON'T AFRAID OF ME MR CLINTON SAID MR ZHIRINOVSKY IN HIS FRACTURED ENGLISH BEFORE THE START OF YESTERDAY'S PARLIAMENTARY SESSION CLINTON SAID THAT HE THOUGHT SOME OF MR ZHIRINOVSKY'S WORDS WEREN'T GOOD BUT I'M RUSSIA I DECIDE WHAT TO SAY TO THE RUSSIAN PEOPLE WHILE IN MOSCOW MR CLINTON ALSO WILL FACE PRESSURE TO DELIVER CONCRETE ECONOMIC ASSISTANCE AND TO DO MORE TO OPEN US MARKETS TO RUSSIAN GOODS PAST PROMISES OF LARGESCALE WESTERN AID HAVE MADE RUSSIANS SKEPTICAL OF THE WEST'S DESIRE TO HELP BILLIONS OF DOLLARS HAVEN'T BEEN DELIVERED AND MOST AID THAT HAS COME HASN'T BEEN VISIBLE TO THE AVERAGE RUSSIAN STILL MR CLINTON IS HOPING TO MAKE A SPLASH IN MOSCOW WITH THE AGREEMENT HE PLANS TO SIGN FRIDAY WITH THE RUSSIAN AND UKRAINIAN PRESIDENTS UNDER THE PACT UKRAINE IS TO RELINQUISH ITS NUCLEAR ARSENAL THE WORLD'S THIRDLARGEST IN RETURN FOR 1 BILLION IN US AID AND PURCHASES OF UKRAINIAN URANIUM BUT PLENTY COULD GO WRONG WITH THAT DEAL SOME UKRAINIAN OFFICIALS ARE PREDICTING THAT THE COUNTRY'S PARLIAMENT WON'T RATIFY THE ACCORD 9401120087 940112 CORPORATE FOCUS CHARTER MEDICAL PLANS BIG CHANGES IN PSYCHIATRIC CARE EARLY CARE RESIDENCE HOMES ARE KEY TO COSTCONSCIOUS APPROACH BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL CARING FOR PEOPLE WITH MENTALHEALTH PROBLEMS HELPED BRING CHARTER MEDICAL CORP TO THE BRINK OF COLLAPSE NOW THAT SAME BUSINESS BY CHARTER'S THINKING MAY PROVE TO BE ITS SALVATION A YEAR AND A HALF AFTER EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE MACON GA COMPANY IS LAYING THE GROUNDWORK FOR A MAJOR CHANGE IN THE WAY IT PROVIDES MEDICAL CARE TRADITIONALLY CHARTER HAS TREATED PATIENTS IN DOZENS OF PSYCHIATRIC HOSPITALS SCATTERED ACROSS THE COUNTRY THAT CARE THOUGH IS OFTEN LENGTHY AND EXPENSIVE ACCORDINGLY CHARTER IS NOW MOVING TO REDUCE ITS RELIANCE ON HOSPITAL TREATMENT AND PROVIDE A BROAD RANGE OF MENTALHEALTH SERVICES WE WANT TO BE SEEN AS THE ONESTOP SHOPPING CENTER FOR BEHAVIOR CARE SAYS E MAC CRAWFORD CHAIRMAN AND CHIEF EXECUTIVE TO THAT END CHARTER PLANS TO BECOME PART OF A PATIENT'S MENTALHEALTH TREATMENT AS EARLY AS POSSIBLE HOPEFULLY LONG BEFORE HOSPITAL CARE IS REQUIRED THAT MEANS PURCHASING PHYSICIAN GROUPS COMPRISED OF PSYCHIATRISTS WHO SEE PATIENTS IN THE FIRST STAGES OF NEED THE COMPANY ALSO PLANS TO PROVIDE MORE PARTIAL HOSPITALIZATION AND MORE OUTPATIENT TREATMENT INVESTMENTS WILL BE MADE TOO IN LONGTERM RESIDENCES AND GROUP HOMES WHERE TREATMENT IS LESS INTENSIVE THAN IN PSYCHIATRIC HOSPITALS MR CRAWFORD ACKNOWLEDGES THAT IN THE EFFORT TO REMAKE THE COMPANY PROFIT MARGINS IN THE SHORT TERM WILL BE SACRIFICED BUT THE MOVES ARE NECESSARY ACCORDING TO INDUSTRY OBSERVERS IN AN ERA OF HEALTHCARE REFORM RIVAL HOSPITALS AND OTHER MEDICAL PROVIDERS ARE JOINING FORCES TO OFFER CLIENTS A WIDE RANGE OF SERVICES AT DISCOUNTED PRICES TO BE VIABLE A COMPANY LIKE CHARTER CAN'T SIT BACK AND SAY I RUN PSYCHIATRIC HOSPITALS AND THAT'S ALL I DO' SAYS JOEL RAY AN ANALYST WITH KIDDER PEABODY & CO IN NEW YORK YOU DO THAT AND YOU'RE A DINOSAUR YOU'RE GONE CHARTER SAYS IT PLANS TO ACQUIRE FIVE PHYSICIAN GROUP PRACTICES EVERY YEAR FOR THE NEXT FIVE YEARS IT ALSO PLANS TO ENTER 10 NEW MARKETS EVERY YEAR FOR THE NEXT THREE YEARS CURRENTLY MANY OF CHARTER'S OPERATIONS ARE IN THE SOUTH AND WEST THE COMPANY SAYS IT WILL ENTER THESE MARKETS THROUGH THE PURCHASE OF PHYSICIAN GROUPS OR THROUGH FREESTANDING OUTPATIENT OR PARTIALHOSPITALIZATION CENTERS BESIDES USING ITS 50 MILLION REVOLVING CREDIT LINE AND 15 MILLION CASH ON HAND CHARTER WOULD FINANCE THE EXPANSION BY ISSUING STOCK OR REFINANCING ITS DEBT MR CRAWFORD SAYS WITH THIS STRATEGY CHARTER EXPECTS TO SEE A HUGE JUMP IN ITS OUTPATIENT REVENUE AS A PERCENTAGE OF INCOME TO 50 FROM 10 CURRENTLY ACCORDING TO LARRY DRINKARD CHIEF FINANCIAL OFFICER AND WITH THE ESTABLISHMENT OF A NETWORK OF SERVICES CHARTER PLANS TO TAKE ITS PROGRAMS TO INSURANCE COMPANIES AND EMPLOYERS SETTING UP CONTRACTS FOR INSTANCE TO TREAT ENTIRE EMPLOYEEPOPULATIONS FOR ONE LUMP SUM WHILE INDUSTRY ANALYSTS APPLAUD CHARTER'S AMBITIONS SEVERAL HURDLES REMAIN INDEED SOME OF THE SAME FORCES THAT HELPED PUSH CHARTER INTO A TAILSPIN IN THE LATE 1980S STILL EXIST TODAY PAYERS OF MEDICAL BILLS CONTINUE TO PRESS FOR REDUCED CHARGES FROM HOSPITALS AND PHYSICIANS ONE RESULT AVERAGE LENGTHS OF STAY AT PSYCHIATRIC HOSPITALS FELL TO 17 DAYS LAST YEAR FROM 28 DAYS IN 1987 AND THAT NUMBER IS EXPECTED TO CONTINUE TO DECLINE TO 10 TO 12 DAYS IN THE NEXT FIVE YEARS ANALYSTS SAY MEANWHILE ROOM FOR ERROR IN THE MENTALHEALTHCARE INDUSTRY HAS ALL BUT VANISHED WITH PROFIT MARGINS AT MEDIAN PSYCHIATRIC HOSPITALS DIPPING TO MINUS 133 IN 1992 FROM 46 IN 1988 ACCORDING TO HCIA INC A HEALTHCARE CONSULTING FIRM IF ANYTHING THAT FIGURE IS GOING TO GET WORSE PREDICTS JOHN W CUMMINGS PRESIDENT OF WDI CAPITAL MARKETS INC A HEALTHCARE INVESTMENT BANKING FIRM MANAGED CARE IS GOING TO FORCE IT DOWN YOU'RE LOOKING AT ERODING PROFITS IN THE FACE OF REVENUES THAT AREN'T GROWING TO SURVIVE IN SUCH AN ENVIRONMENT PSYCHIATRIC HOSPITALS ARE HAVING TO MOVE AWAY FROM LENGTHY AND EXPENSIVE INPATIENT TREATMENT TO REMEDIES THAT ARE MORE PALATABLE TO INSURANCE COMPANIES NAMELY OUTPATIENT AND PARTIAL HOSPITALIZATION PROGRAMS BUT SUCH PROGRAMS BY THEIR VERY NATURE DON'T IMMEDIATELY PROVIDE THE CUSHION OF PROFITABILITY PER PATIENT THAT THE MORE EXPENSIVE INPATIENT TREATMENT PROVIDED DURING THE 1980S ANALYSTS SAY TRANSLATION COMPANIES LIKE CHARTER NOT ONLY HAVE TO REMAKE THEMSELVES BUT IN SO DOING MAY ALSO FIND THEMSELVES WORKING HARDER FOR EVERY DOLLAR CHARTER SAYS IT IS UP TO THE CHALLENGE ANALYSTS SAY A TUMULTUOUS FIVE YEARS HAVE LEFT THE COMPANY BETTER PREPARED TO FACE THE FUTURE TAKEN PRIVATE IN A MANAGEMENTLED BUYOUT IN 1988 CHARTER STRUGGLED WITH 16 BILLION IN DEBT JUST AS INSURERS AND OTHER MEDICAL PAYERS STARTED TO CRACK DOWN ON WHAT THEY CONSIDERED TO BE EXCESSIVE CHARGES FOR PSYCHIATRIC CARE IN 1991 CHARTER BEGAN A FINANCIAL RESTRUCTURING AND EVENTUALLY ENTERED BANKRUPTCY COURT WITH A PREPACKAGED CHAPTER 11 FILING THE COMPANY WENT PUBLIC AGAIN IN JULY 1992 MEANWHILE CHARTER FOUND ITSELF EMBROILED IN A FIGHT WITH TEXAS REGULATORS WHO HAD LAUNCHED AN INVESTIGATION INTO ALLEGED BILLING AND MARKETING ABUSES AT SEVERAL HOSPITAL CHAINS WHILE ADMITTING NO WRONGDOING THE COMPANY AGREED TO PAY THE STATE 550000 FOR INVESTIGATION COSTS WITHDRAW 11 MILLION OF REIMBURSEMENT CLAIMS AGAINST A STATE VICTIMCOMPENSATION FUND AND PROVIDE 16 MILLION OF FREE MENTAL HEALTH CARE TO TEXAS RESIDENTS FINALLY LAST SPRING THE COMPANY REPLACED ITS 60YEAROLD FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM A FICKLING JR MR CRAWFORD PRESIDENT AND CHIEF OPERATING OFFICER AT THE TIME TOOK OVER AS CHIEF EXECUTIVE WHILE MICHAEL HERNANDEZ A DIRECTOR WAS NAMED NONEXECUTIVE CHAIRMAN MR CRAWFORD QUICKLY UNLOADED 10 MEDICALSURGICAL HOSPITALS LAST SUMMER TO QUORUM HEALTH GROUP FOR 340 MILLION PROCEEDS WERE USED TO HELP TO TRIM CHARTER'S DEBT THE COMPANY PRIMARILY THROUGH ITS REORGANIZATION PLAN HAD ALREADY REDUCED ITS DEBT TO 700 MILLION TODAY CHARTER'S DEBT STANDS AT 420 MILLION BUT OTHER CHALLENGES REMAIN THE SPECTER OF HEALTHCARE REFORM MEANS CHARTER MAY BE HURT BY REDUCTIONS IN MEDICARE AND MEDICAID PAYMENTS AND THE COMPANY HAS SAID LITTLE ABOUT HOW IT PLANS TO DEAL WITH THE INCREASING AVAILABILITY OF PSYCHIATRIC DRUGS TO TREAT SCHIZOPHRENIA AND DEPRESSION DRUGS THAT ARE SLOWLY ERODING THE NEED FOR HOSPITAL TREATMENT STILL ANALYSTS ARE OPTIMISTIC THE MOVES ARE ALL SMART THINGS SAYS GEORGE PILLARI PRESIDENT OF HCIA THE CONSULTING CONCERN MOREOVER CHARTER HAS A CERTAIN ELEMENT OF CREDIBILITY THAT WASN'T THERE BEFORE AND THAT SHOULD HELP THEM 9401120086 940112 FASHION FASHION SHOWS' BROADCAST PLANS SUDDENLY DIE BY ANNEMICHELE MORICE STAFF REPORTER OF THE WALL STREET JOURNAL PARIS AN ATTEMPT BY LEADING FRENCH DESIGNERS TO MAKE THEIR HAUTE COUTURE FASHION SHOWS A LITTLE LESS HAUTE HAS FALLEN FLAT ON ITS FACE HOPING TO REACH A BIGGER AUDIENCE FOR THEIR INVITATIONONLY SHOWS AND TO RECOUP SOME OF THEIR HIGH COSTS 18 OF THE 20 LEADING DESIGNERS HERE HAD SOLD BROADCASTING RIGHTS OF THEIR SEMIANNUAL SHOWS FOR THE NEXT FIVE YEARS TO A US PRODUCTION COMPANY CALLED EVENTMEDIA THE COMPANY PLANNED TO BEAM LIVE BROADCASTS OF MOST OF THE SHOWS TO PAYING AUDIENCES IN EXCLUSIVE HOTEL AUDITORIUMS IN NEW YORK CHICAGO AND LOS ANGELES THE BROADCAST PLANS WERE ABRUPTLY CANCELED YESTERDAY AFTER EVENTMEDIA SAID IT COULDN'T PAY ITS PROMISED FEES THE FLOP IS AN EMBARRASSING SETBACK JUST DAYS BEFORE THE START OF THE SUMMER FASHION SHOWS WHICH TYPICALLY GENERATE HUGE PUBLICITY FOR THE DESIGNERS RECRIMINATIONS ARE ALREADY FLYING IN THE FRENCH FASHION WORLD I AM APPALLED BY THE LATE CANCELLATION OF THIS CONTRACT SAYS FRANCOIS BELLENGUEZ PRESIDENT OF CARVEN A FASHION HOUSE WHILE CHRISTIAN DIOR CHRISTIAN LACROIX GUY DE GIVENCHY AND OTHER TOP NAMES HAD EAGERLY SIGNED UP FOR THE PLAN TWO DESIGNERS CHANEL AND PIERRE CARDIN REFUSED THE ARRANGEMENT UNDER THE CONTRACT EACH PARTICIPANT WOULD HAVE RECEIVED ABOUT 85000 FOR EACH TWICEYEARLY SHOW BECAUSE THE LAVISH SHOWS CAN COST BETWEEN 1 MILLION AND 25 MILLION THE BROADCAST FEES WOULD HAVE PAID ONLY A SMALL PART OF THE COSTS BUT THE MONEY WOULD HAVE BEEN WELCOME AT A TIME WHEN COUTURE IS STRUGGLING CARVEN A SMALLER DESIGNER HAD HOPED TO USE THE BROADCAST FEES TO PAY FOR BIGGER VENUES FOR ITS SHOWS WE WERE COUNTING VERY MUCH ON THIS CONTRACT MR BELLENGUEZ SAID THE CONTRACT WHICH WAS NEGOTIATED BY JACQUES MOUCLIER THE PRESIDENT OF THE FRENCH COUTURE FEDERATION SPECIFIED THAT EVENTMEDIA WOULD PAY 2 MILLION ANNUALLY CHARGING US SUBSCRIBERS UP TO 1600 FOR EIGHT LIVE HALFDAY BROADCASTS MR MOUCLIER SAID HE UNDERSTOOD EVENTMEDIA TO BE A PRODUCTION COMPANY THAT HAD STAGED SIMILAR EXCLUSIVE BROADCASTS OF CONCERTS WHEN ASKED ABOUT THE SOURCES OF THE FINANCING FOR THE SCHEME JOHN TRIGGLE EVENTMEDIA'S PRESIDENT WOULD SAY ONLY THAT THE MONEY CAME FROM PRIVATE UNNAMED INVESTORS REPEATED PHONE CALLS TO MR TRIGGLE'S OFFICE AFTER THE CONTRACT COLLAPSED WERE NOT RETURNED JUST LAST WEEK MR MOUCLIER WAS EFFUSIVE ABOUT THE EVENTMEDIA DEAL SAYING IT DEMONSTRATED THAT HAUTE COUTURE OFTEN WRITTEN OFF AS DEAD IN THE LAST 30 YEARS WAS SHOWING NEWFOUND DYNAMISM YESTERDAY HE COMMENTED DEJECTEDLY THAT WE ARE WOUNDED AND WE'LL HAVE TO RUB ON SOME BALM THE TWO HOUSES THAT DIDN'T SIGN UP MEANWHILE ARE CROWING WE WERE VERY SURPRISED THAT THE FEDERATION'S MEMBERS HAD ACCEPTED THE DEAL EN MASSE SNIFFED A CHANEL SPOKESWOMAN FOR US THE PRINCIPLE OF HANDING OVER OUR IMAGE IS AN ABERRATION 9401120085 940112 TEXAS JOURNAL WINNERS & LOSERS GUN DEALERS NEARLY SIX OUT OF 10 ADULT TEXANS KEEP GUNS IN THEIR HOMES FOR PROTECTION ACCORDING TO A SURVEY BY SAM HOUSTON STATE UNIVERSITY JERRY JONES THE DALLAS COWBOYS OWNER DIDN'T UNJUSTLY ENRICH HIMSELF AT THE EXPENSE OF 3000 NATURALGAS ROYALTY OWNERS AFFILIATED WITH HIS FORMER COMPANY AN ARKANSAS FEDERAL JUDGE RULED LITTLE EARS WORRIED THAT CHILDREN MIGHT READ THE FILINGS A STATE JUDGE ORDERED ATTORNEYS TO ELIMINATE FOUL LANGUAGE FROM A LAWSUIT ACCUSING DALLAS DESIGNER VICTOR COSTA OF SEXUAL HARASSMENT PROLINE CAP CO RATHER THAN BUILD MORE WOMEN'S RESTROOMS THIS WHITE SETTLEMENT CAP MAKER FIRED 30 FEMALE EMPLOYEES ALLEGES A LAWSUIT FILED BY THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION GANG FASHIONS CORPUS CHRISTI'S SUNRISE MALL BARRED SHOPPERS WHO WEAR BASEBALL CAPS TURNED BACKWARDS ARGUING THAT IT'S A SIGN OF GANG MEMBERSHIP AGGIES THE NCAA BANNED A&M'S FOOTBALL TEAM FROM APPEARING ON TELEVISION FOR A YEAR AFTER DETERMINING SOME PLAYERS WERE PAID FOR SUMMER WORK THEY DIDN'T PERFORM 9401120084 940112 WHO'S NEWS TIMES MIRROR CO REALIGNS MANAGEMENT OF EAST COAST PAPERS LOS ANGELES TIMES MIRROR CO SAID IT CREATED AN OFFICE OF THE PUBLISHER AND REORGANIZED SENIOR MANAGEMENT OF ITS NEWSDAY AND NEW YORK NEWSDAY EAST COAST NEWSPAPERS THE MEDIA AND INFORMATION COMPANY SAID THE NEW OFFICE WILL INCLUDE THE PAPERS' PUBLISHER ROBERT M JOHNSON 48 YEARS OLD AND DEPUTY PUBLISHER STEVEN L ISENBERG 53 ALSO ALBERTO IBARGUEN 49 WAS NAMED EXECUTIVE VICE PRESIDENT FOR OPERATIONS MR IBARGUEN WAS FORMERLY SENIOR VICE PRESIDENT FOR LEGAL EMPLOYEE AND PUBLIC AFFAIRS ANTHONY MARRO 51 WAS PROMOTED FROM SENIOR VICE PRESIDENT AND EDITOR OF NEWSDAY TO EXECUTIVE VICE PRESIDENT AND EDITOR OF THE NEWSPAPER GERALD HL TRYHANE 41 FORMERLY VICE PRESIDENT OF FINANCE WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER HAROLD F WOLDT JR 46 WAS PROMOTED FROM VICE PRESIDENT CIRCULATION TO SENIOR VICE PRESIDENT CIRCULATION AND DISTRIBUTION AND JAMES FITZGERALD 62 SENIOR VICE PRESIDENT WILL NOW SERVE AS SENIOR ADVISER AND SPECIAL PROJECT DIRECTOR 9401120083 940112 BUSINESS BRIEF BIOGEN INC PATENT PACT WITH ELI LILLY WILL BOOST 1994 REVENUE BIOGEN INC CAMBRIDGE MASS SAID IT WILL REALIZE AN ADDITIONAL 15 MILLION IN REVENUE THIS YEAR MOST OF IT IN THE FIRST QUARTER FROM AN AGREEMENT ALLOWING ELI LILLY & CO TO USE BIOGEN PATENTS FOR GENETICALLY ENGINEERED PRODUCTS BIOGEN SAID 1993 REVENUE WAS AROUND 150 MILLION IN NASDAQ STOCK MARKET TRADING BIOGEN'S SHARES CLOSED AT 4625 UP 5 OR 12 SEPARATELY ARESSERONO SA'S ARESSERONO GROUP SAID IT REACHED AN AGREEMENT TO TRANSFER PATENT RIGHTS TO BIOGEN ON DNA CODING FOR RECOMBINANT BETA INTERFERON WHICH HAS SHOWN PROMISE IN TREATING MULTIPLE SCLEROSIS AND CERTAIN IMMUNESYSTEM DISEASES TERMS WEREN'T DISCLOSED ARESSERONO IS A SWISS DEVELOPER AND MARKETER OF PHARMACEUTICAL AND DIAGNOSTIC PRODUCTS 9401120082 940112 BUSINESS BRIEF ADAC LABORATORIES FIRM EXPECTS TO REPORT RISE OF 28 IN FIRSTQUARTER NET ADAC LABORATORIES SAID IT EXPECTS TO REPORT A 28 RISE IN NET INCOME FOR ITS FISCAL FIRST QUARTER CITING STRONG SALES OF ITS MEDICAL EQUIPMENT ADAC SAID IT EXPECTS TO REPORT THAT NET INCOME FOR THE QUARTER ENDED JAN 3 WAS 32 CENTS A SHARE ON REVENUE OF 465 MILLION IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 41 MILLION OR 25 CENTS A SHARE WHEN ADJUSTED FOR A 1FOR3 REVERSE STOCK SPLIT ON REVENUE OF 363 MILLION THE MILPITAS CALIF MEDICALEQUIPMENT COMPANY SAID IT RECEIVED BOOKINGS OF ALMOST 48 MILLION 15 MORE THAN IN THE YEARAGO QUARTER ADAC SAID IT EXPECTS TO REPORT COMPLETE RESULTS BY MIDFEBRUARY 9401120081 940112 WORLD STOCK MARKETS MEXICO'S BOLSA REBOUNDS ON SIGNS OF POSSIBLE DIALOGUE WITH REBELS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN STOCKS REBOUNDED SHARPLY YESTERDAY IN RESPONSE TO SIGNS OF POSSIBLE DIALOGUE BETWEEN THE CHIAPAS REBELS AND THE GOVERNMENT HERE THE MEXICAN BOLSA'S IPC INDEX WHICH PLUNGED MORE THAN 6 MONDAY SOARED MORE THAN 120 POINTS IN MORNING TRADING YESTERDAY AND THEN SETTLED BACK ON PROFITTAKING TO CLOSE UP 9545 POINTS OR 388 AT 255456 VOLUME WAS MODERATELY HEAVY AT 1466 MILLION SHARES THE DOW JONES MEXICO INDEX ROSE 640 OR 367 TO 18255 AS PREVIOUSLY REPORTED PRESIDENT CARLOS SALINAS DE GORTARI RESHUFFLED HIS CABINET AND APPOINTED MANUEL CAMACHO SOLIS A FORMER MEXICO CITY MAYOR AND FOREIGN MINISTER TO HEAD A NEWLY FORMED CHIAPAS PEACE COMMISSION AT THE SAME TIME THE REBEL EJERCITO ZAPATISTA DE LIBERACION NACIONAL PUBLISHED ITS CEASEFIRE CONDITIONS IN A CHIAPAS NEWSPAPER THIS IS A SIGN OF DIALOGUE THAT IS VERY IMPORTANT SAID SALVADOR SANCHEZ OCHARAN DIRECTOR GENERAL AT MEXICAN BROKERAGE FIRM PROBURSA STILL HE SAID MEXICAN INVESTORS CONTINUE TO TAKE PROFITS AND ELIMINATE SPECULATIVE POSITIONS FOREIGN INVESTORS MR SANCHEZ SAID ARE BUYING CAUTIOUSLY THIS DIVERGENCE IN TRADING PATTERNS BETWEEN FOREIGN AND LOCAL INVESTORS HAS PERSISTED THROUGHOUT THE CHIAPAS CRISIS MEXICAN INVESTORS ARE TAKING A CAUTIOUS VIEW ON THE ECONOMIC AND POLITICAL IMPACT OF THE CHIAPAS WAR FOREIGN INVESTORS VIEW THE REBELLION AS A REGIONAL CONFLICT THAT WILL SOON SUBSIDE WITH LITTLE IMPACT ON THE MEXICAN ECONOMY I USUALLY BELIEVE THAT INTERNATIONAL INVESTORS ARE MORE SOPHISTICATED SAID JORGE SUAREZVELEZ MANAGING DIRECTOR OF AFIN SECURITIES INTERNATIONAL NEW YORK BUT IN THIS CASE THEY DON'T KNOW MORE THAN MEXICAN INVESTORS ANALYSTS IN MEXICO FIGURE THAT THE CHIAPAS UPRISING COULD PROVOKE TWO IMPORTANT CHANGES IN MEXICO'S POLITICAL ECONOMY FIRST IT MAY SPUR MORE SOCIAL SPENDING WHICH COULD KEEP INFLATION UP AROUND 8 IN 1994 AND POSSIBLY PUSH THE COUNTRY'S BUDGET INTO A DEFICIT THE GOVERNMENT HAD HOPED TO LOWER INFLATION TO 5 THIS YEAR SECOND THE RULING PARTY IS LIKELY TO GRANT MORE POLITICAL CONCESSIONS TO OPPOSITION CANDIDATES WHILE TRYING TO WIN ELECTIONS THROUGH ECONOMIC EFFORTS THAT REQUIRE MORE FEDERAL SPENDING WHILE THESE CHANGES WOULD NOT NECESSARILY BE BEARISH FOR THE STOCK MARKET ANALYSTS SAID THEY DO REPRESENT UNCERTAINTIES THAT MAKE MEXICAN INVESTORS CAUTIOUS INTERNATIONAL INVESTORS HOWEVER BELIEVE THAT PRESIDENT SALINAS WILL BE ABLE TO SOLVE THE CHIAPAS CONFLICT QUICKLY THEY SEE FEW OTHER MARKETS AND ECONOMIES IN LATIN AMERICA THAT WILL ATTRACT THE FOREIGN INVESTMENT THAT IS LIKELY TO POUR INTO MEXICO THIS YEAR AND THEY EXPECT ANOTHER YEAR OF DOUBLEDIGIT STOCKMARKET GAINS EVERY TIME THE MARKET GOES DOWN IT IS A BUYING OPPORTUNITY SAID FEDERICO HERNANDEZ HEREDIA A PORTFOLIO MANAGER AT THE EURINAM GROUP AN INTERNATIONAL INVESTMENT FIRM IN NEW YORK I AM ALSO NERVOUS BUT MY VIEW IS STILL VERY POSITIVE ON THE COUNTRY I CAN'T GET RETURNS LIKE THIS ANYWHERE ELSE SOUTH OF THE BORDER THE PESO RECOVERED SLIGHTLY AGAINST THE DOLLAR YESTERDAY A SIGN THAT FOREIGN INVESTMENT FLOWS REMAINED STABLE WHAT ARE THE FOREIGNERS DOING JUST WATCH THE CURRENCY SAID JOHN LIEGEY PRESIDENT OF THE WESTON GROUP NEW YORK IN LATE TRADING THE MEXICAN CURRENCY CHANGED HANDS AT 31091 PESOS TO THE DOLLAR COMPARED WITH 31145 PESOS MONDAY ON THE MEXICAN BOLSA CONGLOMERATE GRUPO CARSO ROSE NEARLY 7 TO 3370 PESOS 1102 CEMEX CLASS B SHARES ROSE ABOUT 5 TO 9350 PESOS GLASS MAKER VITRO'S SHARES ROSE 619 TO 2230 PESOS ACCORDING TO BARING SECURITIES NEW YORK THE AMERICAN DEPOSITARY SHARES OF TELEFONOS DE MEXICO ROSE 1 1/2 TO 66 3/4 ON THE NEW YORK STOCK EXCHANGE MR SANCHEZ OCHARAN OF PROBURSA ADDED THAT THE GOVERNMENT'S DECISION TO SELL ITS STAKE IN TELMEX ELIMINATED ONE OF THE BIGGEST UNCERTAINTIES SURROUNDING THE BOLSA'S LARGEST STOCK AND ENCOURAGED FRESH INVESTMENT IN THE SHARES LONDON EQUITIES RETREATED ON INCREASINGLY GLOOMY SENTIMENT ABOUT PROSPECTS FOR AN INTERESTRATE CUT SOON TOKYO'S MARKET ROSE SLIGHTLY TUESDAY LOGGING ITS FIFTH GAIN IN A ROW TO THE HIGHEST LEVEL IN TWO MONTHS AS OVERSEAS INVESTORS CONTINUED TO SNAP UP SHARES THAT JAPANESE INSTITUTIONS SOLD TO LOCK IN PROFITS AHEAD OF THE MARCH 31 END OF THE FISCAL YEAR BUT HONG KONG STOCKS SLUMPED 19 ON PROFITTAKING FOLLOWING A SHORTLIVED REBOUND THE PREVIOUS DAY SINGAPORE'S MARKET SLID 28 ALSO AS INVESTORS SNAGGED PROFITS AND KUALA LUMPUR SHARES DIVED 56 AFTER A FORMER MALAYSIAN FINANCE MINISTER SAID THE STEAMING BOURSE WAS RIPE FOR A CORRECTION WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11291 DOWN 034 REFLECTING DECREASES IN ALL THREE MARKET REGIONS THE AMERICAS EUROPE AND ASIA/PACIFIC HEALTHCARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14860 UP 210 OR 14 WITH HOSPITAL CORP OF AMERICA OF THE US POSTING A 42 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT 27233 DOWN 2445 OR 82 WITH UNITED PLANTATIONS BHD OF MALAYSIA SLIDING 12 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAVE UP 268 POINTS TO 34138 THE FT 30STOCK INDEX FELL 101 POINTS TO 26048 BELOW ITS 1993 YEAREND FINISH VOLUME WAS 8828 MILLION SHARES COMPARED WITH 8491 MILLION SHARES A DAY EARLIER PRICES SLUMPED IN THE FINAL HALF HOUR TAKING A CUE FROM THE FUTURES MARKET AND ENDED BROADLY LOWER IN ADDITION TO GROWING PESSIMISM ABOUT A LENDINGRATE REDUCTION INVESTORS WERE CONCERNED ABOUT INFLATION BECAUSE OF A SURVEY THAT SHOWED MANY BRITISH COMPANIES PLAN TO RAISE PRICES AS THE ECONOMY'S RECOVERY GATHERS STEAM THIS NEWS HURT FINANCIAL STOCKS WHICH WOULD BENEFIT FROM LOWER INTEREST RATES INVESTORS ALSO GREW CAUTIOUS AFTER A WEAK OPENING ON WALL STREET FOLLOWING MONDAY'S RALLY IN FRANKFURT STOCK PRICES CLOSED MIXED IN DULL TECHNICAL TRADING THE DAX 30STOCK INDEX SLIPPED 504 POINTS TO 222875 DEALINGS WERE INFLUENCED BY THE FUTURES MARKET THE STOCK MARKET'S LETHARGY WASN'T SHAKEN BY REPORTS OF GERMANY'S WORST ANNUAL GROSS DOMESTIC PRODUCT SINCE WORLD WAR II AN INFLATIONADJUSTED CONTRACTION OF 19 LAST YEAR AND OF A 147 DROP IN CAPITAL SPENDING IN PARIS STOCKS GAINED KEEPING UP THE MOMENTUM FOR NEW HIGHS THIS YEAR HELPED BY POSITIVE CORPORATE NEWS TO SPUR TRADING IN MILAN PRICES MUSCLED UP IN ROBUST DEALINGS AS BARGAINHUNTING INSTITUTIONAL INVESTORS RETURNED IN DROVES TO BUY QUALITY ISSUES CONSIDERED UNDERVALUED AFTER RECENT BEATINGS IN MADRID SHARES ADVANCED TO A RECORD HIGH IN ACTIVE TRADING UNDERPINNED BY HOPES FOR SHORTTERM RATE CUTS A COMING END TO SPAIN'S RECESSION AND ESTIMATES OF LOW DECEMBER INFLATION AND IN STOCKHOLM PRICES ROSE TO THEIR FOURTH CONSECUTIVE RECORD HIGH IN EXTREMELY HEAVY TRADING DESPITE PROFITTAKING IN SOME BLUECHIP ISSUES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RALLIED 31943 POINTS MONDAY ROSE 4181 TO 1848525 ITS HIGHEST LEVEL SINCE NOV 12 IN TRADING WEDNESDAY IN TOKYO THE NIKKEI INDEX ROSE 7691 POINTS TO CLOSE THE MORNING SESSION AT 1856216 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 430 MILLION SHARES DOWN FROM 4707 MILLION SHARES A DAY EARLIER ADVANCING ISSUES EDGED DECLINERS 621417 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1831 POINTS MONDAY EASED 045 TO 150084 OVERSEAS INVESTORS' BUYING REMAINED BRISK WHILE MANY JAPANESE CORPORATIONS AND FINANCIAL INSTITUTIONS UNLOADED HOLDINGS TO SPRUCE UP PORTFOLIO RESULTS BEFORE THE FISCAL YEAR END AND SOME INVESTORS TOOK PROFITS FOREIGNERS HAVE FLOCKED TO THE TOKYO MARKET SINCE LAST WEEK WHEN SOME FINANCIAL INSTITUTIONS INCREASED THEIR RECOMMENDED WEIGHTING FOR JAPANESE SHARES AND SOME SOUTHEAST ASIAN BOURSES PLUNGED AFTER CLIMBING TO SESSION HIGHS TUESDAY SHARES HIT SUBSTANTIAL SELLING PRESSURE AND RETREATED A BURST OF FUTURESRELATED BUYING IN THE FINAL FIVE MINUTES PUSHED THE NIKKEI BACK UP INTO POSITIVE TERRITORY SECURITIES SHARES WERE THE TOP PERFORMERS CONTINUING THEIR RECENT RALLY COINCIDING WITH REPORTS THAT JAPAN'S SECURITIES TRANSACTION TAX MAY BE ABOLISHED IN HONG KONG FOLLOWING A 33 TECHNICAL REBOUND THE DAY BEFORE FROM A SKID OF ALMOST 10 IN THREE DAYS LAST WEEK SHARES OPENED HIGHER BUT COULDN'T SUSTAIN THE GAINS WHICH WERE KNOCKED DOWN BY PROFITTAKING ATTRIBUTED MAINLY TO JAPANESE INVESTORS PROPERTY STOCKS GAVE UP 23 COMMERCIAL AND INDUSTRIAL ISSUES LOST 21 AND UTILITIES SAGGED 19 IN SINGAPORE SNARING OF PROFITS WHACKED THE MARKET AMID WORRIES ABOUT RISING INTEREST RATES AND CRITICISM THE PREVIOUS DAY BY A MALAYSIAN ECONOMIC ADVISER AND BIG STOCK PLAYER THAT THAT COUNTRY'S MARKET WAS OVERHEATED IN KUALA LUMPUR PRICES DIVED AS JITTERY INVESTORS TOOK TO HEART THE WARNING BY TUN DAIM ZAINUDDIN A FORMER FINANCE MINISTER ABOUT THE MARKET'S RECENT HUGE GAINS CAPPED BY A YEAREND SPECULATIVE SURGE IN TAIPEI PRICES LOST 16 IN ACTIVE TRADING AS INVESTORS WORRIED ABOUT THE TAIWAN GOVERNMENT'S MOVE TO TIGHTEN LIQUIDITY INTERBANK RATES IN THE MONEY MARKET JUMPED ABOVE 7 AS TAIWAN'S CENTRAL BANK HAS REFRAINED FROM INJECTING FUNDS INTO THE MARKET IN MANILA SHARES RETREATED 14 ON INSTITUTIONAL PROFITTAKING FOR THE THIRD CONSECUTIVE DROP BUT IN SYDNEY SHARES CHALKED UP MODERATE GAINS ON STRONG OVERSEAS BUYING A STRONGER AUSTRALIAN DOLLAR AND WALL STREET'S RALLY THE PREVIOUS DAY IN SEOUL THE BELLWETHER INDEX REBOUNDED STRONGLY ENCOURAGED BY LACK OF SELLING BY INSTITUTIONS THOUGH DECLINING ISSUES OUTNUMBERED GAINING ISSUES AND IN BANGKOK STOCKS CLIMBED 39 THE FIRST RISE AFTER BIG DECLINES IN THE PREVIOUS FOUR SESSIONS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT METALLGESELLSCHAFT JUMPED 16 MARKS OR 73 TO 236 MARKS 13605 DESPITE A NEW OBSTACLE TO THE COMPANY'S RESTRUCTURING PLAN ONE OF THE METAL ENGINEERING AND TRADE CONCERN'S BIG GERMAN BANK CREDITORS ANNOUNCED ITS OPPOSITION TO THE 32 BILLIONMARK 184 BILLION RESCUE PACKAGE REFLECTING RESERVATIONS BY SOME OTHER CREDITORS BUT THE PLAN IS STILL EXPECTED TO PASS AS BIG BANK LENDERS AND MAJOR STOCKHOLDERS ARE BEHIND IT 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 9401120080 940112 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO 11108 IN THE LATEST WEEK FROM A REVISED 11113 THE PRIOR WEEK THREE COMPONENTS TURNED BEARISH CONSUMER CONFIDENCE FELL IN THE LATEST MONTH INITIAL UNEMPLOYMENT CLAIMS SHOT UP SHARPLY AND THE HELPWANTED INDEX DECLINED THE ANNUAL GROWTH RATE OF THE TEXAS INDEX FELL TO 277 THE LOWEST LEVEL SINCE MIDAUGUST 9401120079 940112 FOREIGN EXCHANGE DOLLAR GAINS AGAINST MAJOR CURRENCIES AIDED BY EXPECTATIONS FOR US ECONOMY BY GARY ROSENBERGER AND TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CAUTIOUSLY INCHED HIGHER AGAINST MAJOR CURRENCIES IN QUIET TRADING PRODDED BY EXPECTATIONS THAT THE US ECONOMY WILL CONTINUE TO PUSH AHEAD WITH LITTLE INFLATION BUT THE DOLLAR'S RISE AGAINST THE MARK WAS STUNTED BY SOME HEAVY TECHNICAL BARRIERS AND BY BROAD HINTS FROM A BUNDESBANK OFFICIAL THAT THE GERMAN CENTRAL BANK ISN'T READY TO SEE ANY SWIFT CUTS IN GERMAN INTEREST RATES THE AUSTRALIAN DOLLAR MEANWHILE PUSHED THROUGH SOME TECHNICAL LEVELS EARLY IN THE DAY AND CLUNG TO THOSE GAINS FOR THE REST OF THE SESSION BOLSTERED BY BUYING INTEREST FROM SOME US BANKS AND INVESTMENT FUNDS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17416 MARKS UP FROM 17346 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11240 YEN UP FROM 11225 YEN STERLING WAS TRADING AT 14905 DOWN FROM 14930 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11225 YEN AND AT 17395 MARKS IN A RELATIVELY SCANT NEWS SESSION TRADERS FAVORED THE DOLLAR AGAINST THE MARK BASED ON THE VIEW THAT THE STRENGTH OF THE US ECONOMY COMPARED TO THOSE IN EUROPE WILL HELP PUSH THE US CURRENCY HIGHER THIS YEAR ALSO ADDING TO THE DOLLAR OPTIMISM TRADERS NOTED WERE GROWING PERCEPTIONS THAT US INFLATION PRESSURES AS MEASURED BY DATA RELEASES DUE TODAY AND TOMORROW SHOULD CONTINUE WEAK THAT TRADERS SAID COULD KEEP THE FEDERAL RESERVE FROM MAKING ANY QUICK MOVES TO BOOST US INTEREST RATES ALLOWING THE US ECONOMY TO CONTINUE TO THRIVE IN A LOWRATE ENVIRONMENT THAT REASONING WAS TAKEN AS A BULLISH SIGN FOR THE DOLLAR BECAUSE THE ECONOMY COULD CONTINUE TO EXPAND SAID HILLEL WAXMAN VICE PRESIDENT FOREIGN EXCHANGE AT BANK LEUMI TRUST CO IN NEW YORK THE CLOSELY WATCHED PRODUCER PRICE INDEX FOR DECEMBER WILL BE RELEASED TODAY WITH MOST ECONOMISTS EXPECTING A SLIGHT DECLINE OF 01 FROM NOVEMBER'S LEVEL THE CONSUMER PRICE INDEX DATA WILL BE RELEASED TOMORROW WITH EXPECTATIONS ALSO CENTERING ON A SLIGHT RISE OF 01 WE EXPECT CONFIRMATION THAT THE ECONOMY IS MOVING AHEAD WITH VERY LITTLE INFLATION SAID MICHAEL MCKEEVER ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK BUT WHILE TRADERS REMAINED FIRMLY BULLISH ON THE DOLLAR'S PROSPECTS OVER THE LONGER TERM THEY NOTED THAT THE MARKET HASN'T YET BUILT UP THE CONFIDENCE TO PUSH THE CURRENCY ABOVE A TECHNICAL POINT AT 17480 MARKS THE DOLLAR'S HIGH FOR 1993 ALSO PROMPTING CAUTION TRADERS ADDED WERE COMMENTS BY HELMUT HESSE A MEMBER OF THE BUNDESBANK'S POLICYMAKING COUNCIL WHICH SUGGESTED THAT LONGAWAITED CUTS IN GERMAN INTEREST RATES MAY BE SLOW IN COMING MR HESSE EMPHASIZED YESTERDAY THAT WHILE GERMAN INTEREST RATES WILL FALL FURTHER IN 1994 THE CENTRAL BANK WILL BE VERY CAUTIOUS IN MAKING ANY MOVES NO ONE CAN PREDICT WHEN THE INDIVIDUAL RATE CUTS CAN TAKE PLACE AND HOW FAR THEY LEAD MR HESSE SAID ALL THAT IS CERTAIN IS THAT EACH STEP WILL BE MORE DANGEROUS THAN THE ONE BEFORE TRADERS INTERPRETED THE REMARKS AS CONTINUED TOUGH TALK BY THE BUNDESBANK TO KEEP THE MARK FROM FALLING TOO FAR 9401120078 940112 SMALL STOCK FOCUS PROFITTAKING ENDS FIVEDAY RALLY THOUGH INDEXES REMAIN NEAR PEAKS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS HIT A WALL OF PROFITTAKING AFTER A FIVEDAY RALLY THAT TOOK PRICES WITHIN A STONE'S THROW OF RECORD HIGHS THOUGH LARGER CYCLICAL ISSUES OUTPERFORMED SMALL STOCKS IN SESSIONS PRECEDING YESTERDAY'S SUGGESTING SMALLCAP ISSUES MIGHT SOON PLAY CATCHUP INVESTORS TOOK PROFITS ACROSS THE BOARD THE RUSSELL 2000 INDEX A MEASURE OF THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES FELL 012 POINT OR 005 TO END AT 25963 YESTERDAY'S SESSION MARKED ONLY THE SECOND SINCE THE YEAR BEGAN IN WHICH THE RUSSELL 2000 LOST GROUND THE INDEX HAS GAINED 104 POINTS OR 04 SO FAR THIS YEAR CLOSING IN ON ITS NOV 2 1993 RECORD OF 26017 NASDAQ ISSUES ALSO LOST GROUND AS TRANSPORTATION STOCKS PULLED BACK AFTER RECENT STRENGTH THE NASDAQ COMPOSITE INDEX FELL 117 POINTS OR 015 TO END AT 78552 LESS THAN TWO POINTS FROM ITS ALLTIME CLOSING HIGH NASDAQ NATIONAL MARKET VOLUME ROSE TO 2714 MILLION SHARES FROM MONDAY'S 2602 MILLION SHARES AND TOTAL NASDAQ VOLUME HIT 3219 MILLION SHARES UP FROM 3134 MILLION LOSING ISSUES SQUEEZED AHEAD OF GAINERS 1585 TO 1546 AS LONG AS STOCKS WERE MOVING UP WE SAW BUYERS SAID HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO BUT WHEN SOMETHING DOWNTICKED PEOPLE SOLD BECAUSE THEY WERE AFRAID TO LOSE THEIR PRICES REYNOLDS ADDED THAT MOVES TENDED TO BE DRIVEN BY NEWS WITH MOST OF THE ACTION TRENDLESS SOME TRUCKING STOCKS WERE HURT BY WEAK EARNINGS FORECASTS AMERICAN FREIGHTWAYS HARRISON ARK FELL 2 1/4 TO 17 1/2 THE COMPANY ESTIMATES ITS FOURTHQUARTER NET INCOME WILL BE 11 CENTS TO 13 CENTS A SHARE DOWN FROM A YEAREARLIER 14 CENTS A SHARE ALSO CAROLINA FREIGHT DECLINED 1 1/4 TO 11 5/8 ON THE NEW YORK STOCK EXCHANGE THE CHERRYVILLE NC COMPANY SAID IT EXPECTS A LARGERTHANANTICIPATED FOURTHQUARTER LOSS IN ADDITION IT SUSPENDED ITS QUARTERLY DIVIDEND STOCKS IN OTHER SECTORS ALSO MOVED ON OUTLOOKS SEQUENT COMPUTER SYSTEMS LOST 1 1/4 TO 13 3/4 AFTER THE COMPANY SAID ITS FISCAL FOURTHQUARTER NET EARNINGS SHOULD BE ABOUT 20 TO 25 CENTS A SHARE COMPARED WITH THE YEAREARLIER PERIOD'S 23 CENTS A SHARE THE BEAVERTON ORE FIRM ALSO SAID IT PLANS TO TAKE A RESTRUCTURING CHARGE AGAINST THIS YEAR'S EARNINGS OF 15 MILLION TO 20 MILLION ACCORDING TO A PRELIMINARY ESTIMATE TARGET THERAPEUTICS JUMPED 3 3/4 TO 22 1/4 AFTER PROJECTING FISCAL THIRDQUARTER NET INCOME OF 20 TO 23 CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF 13 TO 17 CENTS A SHARE AND A YEAREARLIER PERSHARE FIGURE OF 13 CENTS ADDITIONALLY KEMPER SECURITIES RAISED ITS INVESTMENT RECOMMENDATION ON TARGET TO STRONG BUY FROM LONGTERM BUY CITING STRONG DEMAND FOR THE FREMONT CALIF MEDICALDEVICES FIRM'S ENTIRE PRODUCT LINE BOTH DOMESTICALLY AND INTERNATIONALLY ANOTHER NOTEWORTHY GAINER WAS CUMBERLAND FEDERAL BANCORP LOUISVILLE KY WHICH JUMPED 8 3/4 TO 52 1/4 ON MERGER NEWS FIFTH THIRD BANCORP SAID IT HAS SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CUMBERLAND AND ITS CUMBERLAND FEDERAL SAVINGS BANK SUBSIDIARY IN A STOCK SWAP VALUED AT 149 MILLION MEANWHILE FLIR SYSTEMS ROSE 1 1/2 TO 11 1/2 THE PORTLAND ORE CONCERN SAID AFTER THE CLOSE OF MARKETS ON MONDAY THAT IT HAS RECEIVED A 72 MILLION CONTRACT FROM THE NAVY FOR 20 NAVIGATION THERMAL IMAGING SYSTEMS AND RELATED EQUIPMENT MERCER INTERNATIONAL VANCOUVER BRITISH COLUMBIA ROSE 3 TO 19 3/4 THE COMPANY SAID ITS SHARE PRICE SHOT UP AFTER ITS PRESIDENT AND CHIEF FINANCIAL OFFICER MET WITH INSTITUTIONAL PORTFOLIO MANAGERS IN NEW YORK AN INITIAL BUY RECOMMENDATION FROM LEGG MASON WOOD WALKER LIFTED GOODY'S FAMILY CLOTHING 1 1/2 TO 13 THE OPERATOR OF RETAIL FAMILY CLOTHING STORES IS BASED IN KNOXVILLE TENN CROSSMAN COMMUNITIES INC AN INDIANAPOLISBASED REGIONAL BUILDER OF SINGLEFAMILY HOMES ROSE 1 TO 12 FOLLOWING AN INITIAL BUY RATING FROM RAYMOND JAMES & ASSOCIATES HOMECONSTRUCTION FIRM DR HORTON INC ROSE 2 1/2 TO 17 1/2 THE ARLINGTON TEXAS COMPANY SAID ITS FISCAL FIRSTQUARTER NET SALES CONTRACTS INCREASED 83 TO 812 MILLION FROM THE YEAREARLIER PERIOD'S 442 MILLION IMPROVED FISCAL FIRSTQUARTER EARNINGS BOOSTED REXALL SUNDOWN INC 1 1/8 TO 15 5/8 THE FORT LAUDERDALE FLA HEALTHPRODUCTS CONCERN SAID NET INCOME FOR THE PERIOD ROSE TO 11 CENTS A SHARE ON MORE SHARES FROM YEAREARLIER PRO FORMA EARNINGS OF EIGHT CENTS A SHARE CYBERONICS A WEBSTER TEXAS MEDICALDEVICES FIRM FELL 2 1/4 TO 10 THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION IN AN INITIAL SCIENTIFIC REVIEW OF AN AMENDED PREMARKET APPROVAL APPLICATION FOR CYBERONICS' NEUROCYBERNETIC PROSTHESIS SYSTEM HAS FOUND SIGNIFICANT DEFICIENCIES IN THE SUBMISSION THOUGH IT HAS BEEN ACCEPTED FOR FILING THE SYSTEM IS USED TO TREAT CERTAIN SEIZURES IN EPILEPSY PATIENTS NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TOTALED 97 WHILE 27 HIT NEW LOWS MOST ANALYSTS SAID IT WON'T TAKE MUCH OF A NUDGE TO PUSH SMALLCAP STOCKS TO RECORD HIGHS THIS WEEK BUT SOME OBSERVERS HAVE ADOPTED A CAUTIOUS STANCE TO THE MARKET AS A WHOLE THE MARKET THAT MARCHES TO THE MOVEMENT OF BIGGER CYCLICAL STOCKS WITHOUT BEING HELPED BY THE SECONDARY ISSUES EVENTUALLY LEADS TO A MARKET THAT WILL BECOME VERY NARROW SAID STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO 9401120077 940112 IF YOUR NEIGHBORS ACT LIKE VULTURES PERHAPS THEY ARE INCREASINGLY THE SCAVENGERS ARE ROOSTING IN EXURBIA LEAVE THEIR CHICKS ALONE BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL LAKE LINGANORE MD NICK HYLTON A RETIRED CONTRACTOR HAS GROWN WEARY OF HIS UNRULY NEIGHBORS THE VULTURES TWO HUNDRED OF THEM ROOST SHOULDER TO SHOULDER IN TREES A FEW HUNDRED YARDS AWAY ADJACENT THE HEAVILY POPULATED BLUFFS OF THIS PLANNED COMMUNITY 35 MILES WEST OF BALTIMORE THE VULTURES MOSTLY BLACK VULTURES THAT STAND ABOUT KNEEHIGH WITH WINGSPANS OF MORE THAN FIVE FEET ONCE ATTACKED MR HYLTON'S PONTOON BOAT CAUSING 1200 IN DAMAGE TO ITS UPHOLSTERY BY ONE THEORY THEY TEAR INTO IT BECAUSE IT EVOKES ANIMAL HIDE FROM HIS DINING ROOM HE POINTS OUT A BIG BRICK HOUSE AT THE FAR SIDE OF THE LAKE THE VULTURES DESTROYED ITS ROOF AND FORCED THE OWNER TO ENCLOSE HIS DECK I'M A HUNTER MR HYLTON SAYS I HAVE GUNS GOOD GUNS IF PUSH COMES TO SHOVE HE SAYS GESTURING TOWARD HIS VAST DECK OVERLOOKING THE LAKE I'M GOING TO PROTECT WHAT'S MINE CALL IT VULTURE SHOCK WITH VULTURES THRIVING AND EXPANDING THEIR RANGE AND HUMANS DOING THE SAME ENCOUNTERS BETWEEN VULTURES AND PEOPLE ARE ON THE RISE THE PROBLEM GETS ESPECIALLY ACUTE NOW AS MIGRATING VULTURES SETTLE INTO THEIR WINTER ROOSTS SWELLING THE INDIGENOUS POPULATIONS THE BIRDS HAVE DAMAGED CARS BOATS AND LAWN CHAIRS KILLED INFANT LIVESTOCK AND FORCED THE CLOSURE OF AN OUTDOOR CAFE IN VIRGINIA A DOZEN TIMES LAST YEAR VULTURE DROPPINGS KNOCKED OUT HIGHTENSION LINES OPERATED BY THE TENNESSEE VALLEY AUTHORITY THE BIRDS CONTINUE TO CAST THEIR BLEAK SHADOWS OVER WALT DISNEY WORLD IN FLORIDA INVADING TERRAIN SURROUNDING ITS DISCOVERY ISLAND BIRD SANCTUARY THE VIRGINIA OFFICE OF THE FEDERAL ANIMAL DAMAGE CONTROL ADC PROGRAM RECEIVED 50 COMPLAINTS ABOUT VULTURES LAST YEAR AN APPOMATTOX VA WOMAN REPORTED THAT 60 OF THE BIRDS HAD CHASED HER DOG INTO ITS DOGHOUSE AND SURROUNDED THE ENTRANCE TWO CEMETERIES FILED COMPLAINTS AFTER MOURNERS EXPRESSED DISMAY AT FINDING DOZENS OF THE SCAVENGERS PERCHED ON HEADSTONES IT SEEMS VULTURES REALLY DO LIKE CEMETERIES ALTHOUGH THIS HAS LITTLE TO DO WITH ANY INSTINCTIVE AFFINITY IT'S A CONVENIENT OPEN AREA TO LAND SAYS MARTIN LOWNEY HEAD OF THE ADC PROGRAM IN VIRGINIA YOU CAN SET ON A HEADSTONE AND JUST OPEN YOUR WINGS MANVULTURE CONFRONTATIONS ARE OFTEN EXACERBATED BY THE SIMPLE FACT THAT VULTURES GIVE PEOPLE THE WILLIES WHICH IS UNDERSTANDABLE GIVEN THE VULTURE'S LONG SERVICE AS AN AUGURY OF DEATH MONUMENTS DATING TO 2650 BC SHOW VULTURES SNACKING ON THE BODIES OF SLAIN SOLDIERS LEGEND HOLDS THE VULTURES THAT NOW HAUNT THE BOULDERS OF BIG ROUND TOP AT THE GETTYSBURG NATIONAL MILITARY PARK ARE DESCENDANTS OF A FLOCK THAT ARRIVED JUST AFTER THE GREAT BATTLE TO FEAST ON DEAD AND DYING HORSES AND HAVE LIVED THERE EVER SINCE IN HOPES OF A REPEAT BANQUET A DEACON IN PELAHATCHEE MISS ONCE CALLED FEDERAL ANIMALCONTROL AGENT FRANK BOYD TO ASK WHETHER LOCAL LEGEND WAS TRUE THAT THE VULTURES TEARING SHINGLES OFF THE CHURCH ROOF HAD COME BECAUSE CHILDREN WERE BURIED IN ITS GRAVEYARD I TOLD HIM NO MR BOYD RECALLS THE BIRDS WERE JUST LOAFIN' NORTH AMERICA IS HOME TO TWO COMMON VULTURIDS THE BLACK AND TURKEY VULTURES THE CALIFORNIA CONDOR IS ALSO A VULTURE BUT IS GRAVELY ENDANGERED BLACK VULTURES ARE A DEEP RICH BLACK HAVE BLACK HEADS AND AGGRESSIVE PERSONALITIES AND OFTEN ROOST IN THE COMPANY OF TURKEY VULTURES WHICH ARE MUCH LARGER BUT FAR MORE BASHFUL THEIR BALD RED HEADS ALLOW THEM TO GRAZE THE INTERIOR ORGANS OF ROADSIDE STAPLES FOR SOME REASON HUNDREDS OF VULTURES HAVE SETTLED IN SOUTH BOSTON VA VULTURES NOSH AT THE CITY DUMP AND STAND WATCH OVER ONE OF THE TOWN'S TWO CEMETERIES FROM A 200FOOT TV TOWER NEXTDOOR BOB BURNETTE A TOBACCONIST HERE SEES VULTURES WHEELING OVER HIS HOME WHEN HE LEAVES FOR WORK IN THE MORNING AND WHEN HE RETURNS IN THE EVENING IF THEY'RE UP THERE FLYING AROUND CIRCLING OVER YOU HE SAYS YOU JUST FEEL LIKE THEY MUST KNOW SOMETHING YOU DON'T THE VULTURES SPEND THEIR NIGHTS IN THE BACKYARD OF HIS NEIGHBOR JOAN BANK EACH EVENING WHEN SHE COMES HOME FROM WORK SHE TURNS THE KNOB TO ACTIVATE A PROPANE CANNON LENT TO HER BY THE ADC AND TIMED TO MAKE AN EXPLOSIVE SOUND EVERY FEW MINUTES EACH YEAR HOWEVER MORE AND MORE VULTURES GATHER LET ME PUT IT THIS WAY SHE SAYS THEY'RE NOT THE BLUEBIRDS OF HAPPINESS FEDERAL LAW PROHIBITS KILLING VULTURES BUT MRS BANK SAYS I'M GETTING TO THE POINT WHERE I'M GOING TO RUN OUT SHOOTING TO SOME EXTENT VULTURES ARE VICTIMS OF BAD PRESS VULTURE EXPERTS DEFEND THEM BY NOTING THEY ARE MEMBERS OF THE STORK FAMILY THAT THEY PREFER FRESH MEAT TO ROTTING FLESH AND THAT THEY ARE REALLY VERY CLEAN BIRDS IF THEY DIDN'T BOTHER TO BRUSH OR PREEN THEMSELVES IMAGINE ALL THAT PUTREFIED MESS THEY MIGHT BE CARRYING AROUND SAYS SHEILA PARNESS GABY A VULTURE EXPERT AND ENVIRONMENTAL CONSULTANT IN MIAMI THE VULTURE CAMP CONCEDES THAT VULTURES WILL VOMIT AT THE LEAST PROVOCATION AND THAT THE STUFF THAT COMES OUT STINKS LIKE NOTHING ELSE ON THIS EARTH BUT EVEN VULTURE VOMIT HAS ITS REDEEMING QUALITIES THEY ARGUE JEROME JACKSON AN ORNITHOLOGIST AT MISSISSIPPI STATE UNIVERSITY SUSPECTS THAT A FUNGUS KNOWN TO GROW ONLY IN THE BIRD'S REGURGITATION MAY BE A POTENT ANTIBIOTIC ENABLING VULTURES TO SURVIVE MEALS OF DISEASELADEN CARRION EDMUND HENCKEL A BIRD LOVER IN MOUNT BETHEL PA KNOWN RESPECTFULLY IN THE VULTURE COMMUNITY AS RANGER ED SEES GRIM MAJESTY IN THE VULTURE IT'S GONNA BE PROBABLY THE LAST BIRD ON THIS EARTH HE SAYS WHEN WE ALL GO HE'S GOING TO BE THE ONE THAT FEEDS ON EVERYTHING ELSE STILL VULTURES DO HAVE A FEW LESSTHANENDEARING TRAITS FOR ONE THING THEY COOL THEMSELVES BY AIMING LIQUID FECES AT THEIR LEGS WHICH THEN ACT AS RADIATORS THEIR CHICKS THOUGH ADORABLE AND FLUFFY DEPOSIT A VILE SMELLING FILM ON THE HANDS OF ANYONE FOOLISH ENOUGH TO PICK THEM UP FOR A CUDDLE ADC AGENTS REPORT FREQUENT CASES WHERE BLACK VULTURES HAVE KILLED NEWBORN CALVES AND PIGLETS FIRST PECKING OUT THEIR EYES VULTURES FREQUENTLY DINE ON DEPARTED PETS AN EXAMINATION OF PELLETS REGURGITATED BY TURKEY VULTURES IN VIRGINIA FOUND DOG AND CAT HAIRS IN 40 OF THEM BUT THE BIRDS REALLY CAN'T BE FAULTED SAYS MR BOYD OF ALABAMA LIKE ANY CRITTER THEY'RE JUST EATIN' WHERE THEY CAN FIND A TABLE HE SAYS AND THAT JUST HAPPENS TO INCLUDE THE DECKS BOATS AND SWIMMING BEACHES AT LAKE LINGANORE ITS RESIDENTS WORRY IN PARTICULAR ABOUT HOW VULTURE DEPOSITS MAY AFFECT THE HEALTH OF THE COMMUNITY'S CHILDREN WHO EACH SUMMER CRAWL AND PLAY ON BEACHES WHERE MOBS OF VULTURES OFTEN PAUSE TO SUN THEMSELVES BUT EVEN HERE THE VULTURES HAVE THEIR FANS IN PARTICULAR DICK AND DOROTHY BRIGHT WHO HAVE LIVED ON A BLUFF ADJACENT THE VULTURES FOR 15 YEARS WE LOVE THEM SAYS MRS BRIGHT THEY'RE OUR PETS UNTIL ABOUT FIVE YEARS AGO MRS BRIGHT EVEN FED TWO OF THE BIRDS ONE WITH A MALFORMED BEAK THE OTHER A BROKEN WING SINCE THEY WERE UNABLE TO FEND FOR THEMSELVES SHE FED THEM TURKEY DRUMSTICKS AND MASHED CHICKEN LIVERS THE OTHER VULTURES ALWAYS READY FOR AN EASY MEAL FLOCKED TO HER HOUSE MUCH TO THE CONSTERNATION OF HER NEIGHBORS THEIR PROTESTS EVENTUALLY CAUSED HER TO STOP THE FEEDINGS BUT NOT TO CHANGE HER SYMPATHIES THE VULTURES WERE HERE FIRST SHE SAYS WE'RE THE INTRUDERS ON THEIR PROPERTY 9401120076 940112 BUSINESS BRIEF INTERNATIONAL PAPER CO FOURTHPERIOD PROFIT POSTED AGAINST LOSS A YEAR EARLIER INTERNATIONAL PAPER CO IN PURCHASE NY REPORTED NET INCOME OF 100 MILLION FOR THE FOURTH QUARTER REVERSING THE YEAREARLIER PERIOD'S LARGE FOURTHQUARTER LOSS THAT INCLUDED A ONETIME CHARGE FOR PLANT CUTBACKS EARNINGS FOR THE QUARTER WERE 100 MILLION OR 81 CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 176 MILLION OR 146 A SHARE THE YEAREARLIER FIGURES INCLUDE A 263 MILLION CHARGE FOR LAYOFFS FACILITY CLOSINGS AND OTHER BELTTIGHTENING MEASURES SALES FOR THE QUARTER WERE 34 BILLION UNCHANGED FROM A YEAR AGO THE COMPANY SAID THE LATEST QUARTER'S NET WAS 15 HIGHER THAN A COMPARABLE 87 MILLION NET INCOME BEFORE THE SPECIAL CHARGES JOHN A GEORGES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PAPER PRODUCTS COMPANY SAID ALTHOUGH THE FORESTPRODUCTS AND SPECIALTYPRODUCTS BUSINESSES ARE STRONG WEAK WORLDWIDE PRICE LEVELS CONTINUE TO IMPACT THE BOTTOM LINE 9401120075 940112 BUSINESS BRIEF PACIFIC TELESIS GROUP COMPANY JOINS U S WEST TO PURSUE DEFENSE CONTRACT PACIFIC TELESIS GROUP AND U S WEST INC SAID THEY WILL JOINTLY PURSUE THE DEFENSE INFORMATION SYSTEMS NETWORK CONTRACT FOR THE COUNTRY'S WESTERN REGION THE BABY BELLS SAID THE TOTAL VALUE OF THE PROGRAM IS ESTIMATED TO EXCEED 1 BILLION OVER THE NEXT SEVERAL YEARS A SPOKESMAN FOR THE GOVERNMENT HOWEVER SAID THE SIZE AND DETAILS OF THE CONTRACT HADN'T BEEN DETERMINED YET THE NETWORK WILL EVENTUALLY COMBINE MORE THAN 100 DEFENSE DEPARTMENT NETWORKS INTO ONE INTERNATIONAL BROADBAND COMMUNICATIONS PLATFORM FOR THE TRANSMISSION OF VOICE DATA AND VIDEO SIGNALS GTE CORP AND NORTHERN TELECOM LTD SAID EARLIER THAT THEY PLANNED TO JOINTLY PURSUE ASPECTS OF THE DEFENSE INFORMATION SYSTEMS NETWORK CONTRACT PACIFIC TELESIS BASED IN SAN FRANCISCO AND U S WEST OF DENVER SAID ALMOST HALF OF THE MAJOR MILITARY INSTALLATIONS IN THE CONTINENTAL US ARE LOCATED IN THE 16 WESTERN STATES THEY SERVE THE BROADBAND NETWORK WILL ALSO INCLUDE THE EASTERN AND SOUTHERN REGIONS 9401120074 940112 BUSINESS BRIEF UNITEL COMMUNICATIONS INC LONGDISTANCE CARRIER TO CUT WORK FORCE 18 IN 2 YEARS UNITEL COMMUNICATIONS INC SAID IT WILL CUT ABOUT 650 JOBS OR 18 OF ITS WORK FORCE OVER THE NEXT TWO YEARS AND TAKE OTHER COSTCUTTING MEASURES BECAUSE OF INTENSE LONGDISTANCE COMMUNICATIONS COMPETITION IN CANADA THE TORONTO LONGDISTANCE CARRIER SAID IT WILL INSTALL NEW EQUIPMENT TO IMPROVE NETWORKROUTING EFFICIENCY LEASE INSTEAD OF BUILD DIGITAL ACCESS LINES FOR PRIVATELINE BUSINESS AND CLOSE SOME EQUIPMENT SITES TO CUT COSTS UNITEL WILL TAKE A RESTRUCTURING CHARGE OF 325 MILLION CANADIAN DOLLARS US247 MILLION UNITEL CHAIRMAN GEORGE HARVEY SAID THE COMPANY HAD TO CUT COSTS TO KEEP ITS PRICES BELOW THE DRASTIC OFTEN PREDATORY PRICE DISCOUNTING IN THE BUSINESS COMMUNICATIONS MARKET SET BY CANADIAN COMPETITORS INCLUDING BELL CANADA A UNIT OF BCE INC OF MONTREAL UNITEL IS OWNED 48 BY CANADIAN PACIFIC LTD 32 BY ROGERS COMMUNICATIONS INC AND 20 BY AMERICAN TELEPHONE & TELEGRAPH CO 9401120073 940112 AMERICAN HEALTH PROPERTIES DENVER AMERICAN HEALTH PROPERTIES INC SAID IT NEGOTIATED AN 80 MILLION REVOLVING CREDIT LINE THE REAL ESTATE INVESTMENT TRUST SAID THE THREEYEAR UNSECURED LINE REPLACES A 40 MILLION FACILITY SET TO EXPIRE IN JUNE 1995 THE NEW LINE INCLUDES TWO ADDITIONAL BANKS AND IS AT COMPARABLE INTEREST RATES AMERICAN HEALTH SAID ALL OF THE NEW LINE IS AVAILABLE FOR NEW INVESTMENTS 9401120072 940112 LEISURE & ARTS CHINA TV DRAMA BASHES US BY LINDA JAIVIN AMERICA IS NEITHER HELL NOR HEAVEN IT'S A BATTLEFIELD SO DECLARES ONE OF THE PROTAGONISTS OF A NATIVE OF BEIJING IN NEW YORK THE TELEVISION SERIES THAT HAS TAKEN CHINA BY STORM TWO YEARS AGO DYNASTY WAS ALL THE RAGE IN CHINA THE CHINESE PRODUCTION MAY HAVE A LOWER LINGERIEANDCLEAVAGE COUNT THAN THE AMERICAN SERIES BUT IT HAS AT LEAST FIVE OTHER BASIC ELEMENTS IN COMMON RUTHLESS CAPITALISTS AMAZING LOVE PRETZELS SERIOUSLY WAYWARD CHILDREN BIGNAME STARS AND FROM A CHINESE PERSPECTIVE AT LEAST EXOTIC LOCALES THOUGH NATIVE HAS FOR NOW RUN ITS COURSE ON CHINESE TELEVISION THE MINIINDUSTRY IT HAS SPAWNED IS STILL CHURNING SEVERAL BOOKS BASED ON THE SERIES ARE ON SALE IN CHINA TODAY VIDEOTAPES OF THE SERIES ARE AMONG THE HOTTEST ITEMS IN CHINATOWN VIDEOSHOPS THE WORLD OVER AND US PUBLIC TELEVISION PLANS TO SCREEN TWO HOURS OF EXCERPTS IN THE NEW YEAR THIS IS THE STORY WANG QIMING A BEIJING CELLIST PLAYED BY FILM STAR JIANG WEN AND HIS WIFE GUO YAN A DOCTOR ARRIVE IN NEW YORK ON NONRESIDENT VISAS BUT FULL OF HOPE FOR A NEW LIFE THEY ARE QUICKLY DISILLUSIONED UNABLE TO FIND WORK AS A MUSICIAN WANG WASHES DISHES IN A RESTAURANT RUN BY AH CHUN A BUSINESSWOMAN AS COLDBLOODED AS SHE IS BEAUTIFUL GUO GOES TO WORK FOR THE CHINESESPEAKING DAVID MCCARTHY A SLEAZY SWEATSHOP BOSS PLAYED BY A FORMER AMERICAN DIPLOMAT IN BEIJING ROBERT DALY DAVID LUSTS AFTER GUO USING UNDERHANDED TRICKS HE BREAKS UP WANG'S AND GUO'S MARRIAGE AND WEDS HER HIMSELF WANG TAKES REVENGE BY BECOMING DAVID'S BUSINESS COMPETITOR AND DRIVING HIM INTO BANKRUPTCY HE AND AH CHUN BECOME LOVERS WANG GETS RICH NINGNING WANG'S AND GUO'S TEENAGE DAUGHTER ARRIVES IN AMERICA AND WREAKS HAVOC BANISHING AH CHUN FROM HER FATHER'S HOUSE REVILING HER MOTHER AND SLEEPING WITH OLD MEN AN ESTIMATED 56 OF CHINA'S VIEWERS TUNED IN TO THE 21PART MINISERIES MORE THAN NORMALLY WATCH THE EVENING NEWS THE CHINESE PRESS CARRIED MANY CRITIQUES AND BACKGROUND ARTICLES ON EVERYTHING FROM THE FILMING IT'S THE FIRST CHINESE TELEVISION SERIES SHOT ENTIRELY ABROAD TO ITS FINANCING THE BEIJING TELEVISION ARTS CENTRE MORTGAGED ITS PROPERTY TO RAISE THE 15 MILLION NEEDED TO SHOOT THE SERIES THE FIRST TIME THIS METHOD HAS BEEN USED TO FINANCE A TV SERIES IN CHINA THERE'S ALREADY ONE BOOK OF ESSAYS AND REVIEWS ON THE SERIES AND ITS SCRIPTS HAVE BEEN PUBLISHED AS WELL A SHANGHAI WRITER IN TAIWAN'S CHINA TIMES WEEKLY EXPRESSED A VIEW COMMON TO MANY OF THE ARTICLES CALLING THE SERIES'S DEPICTION OF OVERSEAS CHINESE LIFE REALISTIC AN ACCURATE PORTRAIT OF THE PEOPLE'S COMPLEX PSYCHOLOGICAL ATTITUDE TOWARD THE RUSH OVERSEAS WHICH BEGAN IN THE '80S ACCORDING TO THE CHINA DAILY IN BEIJING HOWEVER NATIVE HAS ALSO SERVED AN IMPORTANT IDEOLOGICAL PURPOSE TO REMIND THOSE WHO ENTERTAIN A ROSY AMERICAN DREAM TO BECOME COOLHEADED IF NATIVE PORTRAYS AMERICA AS A BATTLEFIELD IT'S ONE IN WHICH THERE ARE NO HEROES ONLY WINNERS AND LOSERS AND YOU DON'T BECOME A WINNER BY PLAYING BY THE RULES CAPITALISM IN THE SERIES'S WORLD IS A CONTEST OF DIRTY TRICKS PLAYED OUT ON A BED OF SLIME TO SUCCEED YOU HAVE TO SELL YOUR SOUL AND FOR EVERY CHINESE PERSON THAT DOES MAKE IT IN NEW YORK THERE ARE UNTOLD OTHERS LIKE A MINOR CHARACTER IN NATIVE WHO FIND PEACE OF MIND AND PERMANENT RESIDENCY IN AMERICA ONLY UNDER A TOMBSTONE NATIVE ISN'T HOWEVER JUST AN EXERCISE IN CAPITALISM BASHING IT HAS A XENOPHOBIC STREAK AS WIDE AS FIFTH AVENUE THE MAJOR AMERICAN CHARACTERS ARE ALMOST ALL CREEPS HYPOCRITES AND RACISTS THEY ARE PORTRAYED AS INCAPABLE OF APPRECIATING ANY ASPECT OF CHINA'S FINE CULTURE AND CIVILIZATION AH CHUN'S FORMER LOVER CARTER EVEN TAKES HER TO COURT FOR ATTEMPTING TO CURE THEIR SON'S OTHERWISE UNTREATABLE ILLNESS WITH CHINESE MEDICINE I CAN'T BELIEVE YOU GOT AN EDUCATION IN AMERICA HE SNARLS THIS IS SORCERY WANG GOES ON TO SAY THAT CAUCASIANS WITH ALL THEIR BODY HAIR ARE MORE MONKEY THAN HUMAN ON ANOTHER LEVEL NATIVE HAS LESS TO DO WITH THE WEST THAN WITH CHINA ITSELF THE SEAMIER SIDE OF CAPITALISM CUTTHROAT COMPETITION EXPLOITATION OF WORKERS AND CYNICAL DISREGARD FOR MORALITY IS ALIVE AND WELL IN MANY PARTS OF CHINA TODAY MANY CHINESE ARTISTS AND WRITERS ARE FINDING IT HARDER AND HARDER TO MAKE ENDS MEET LIKE THE FICTIONAL CELLIST WANG QIMING A NUMBER OF THEM HAVE GIVEN UP THEIR ART FOR BUSINESS TO ADDRESS THESE ISSUES AS SHARPLY AS NATIVE DOES BUT IN A CHINESE CONTEXT AND ESPECIALLY THROUGH A MASS MEDIUM WOULD HAVE BEEN POLITICAL DYNAMITE THE FINAL SHOT OF NATIVE SHOWS WANG LOOKING OUT THE WINDOW OF HIS ILLEGALLY PARKED WHITE CADILLAC AND RAISING HIS MIDDLE FINGER THE GESTURE IS SUPPOSEDLY A RESPONSE TO SOME AMERICANS IN ANOTHER CAR WHO ARE ANNOYED BY HIS ROAD MANNERS BUT IT IS AIMED LIKE WANG'S GAZE STRAIGHT AT THE CAMERA THE INSULTING GESTURE MAY NOT BE UNIVERSALLY UNDERSTOOD AS SUCH IN CHINA BUT IT'S INTERESTING TO PONDER AT WHOM IT'S ACTUALLY DIRECTED MS JAIVIN IS COEDITOR WITH GEREMIE BARME OF NEW GHOSTS OLD DREAMS CHINESE REBEL VOICES TIMES BOOKS 1992 9401120071 940112 LEISURE & ARTS BOOKSHELF FRANCE'S COLD WARRIOR DEFENDS HIMSELF BY DAVID BROOKS BETRAYED BY MARKETING FOR DECADES JEANFRANCOIS REVEL WAS ONE OF THE WEST'S STAUNCHEST ANTICOMMUNISTS WRITING A SERIES OF BOOKS AND ARTICLES IN WHICH HE EVISCERATED COMMUNISM AND THOSE WHO REFUSED TO FACE IT SQUARELY THE TITLE FOR HIS MOST SUCCESSFUL BOOK WAS A LAPELGRABBING GEM HOW DEMOCRACIES PERISH PUBLISHED IN 1983 IT SOLD 100000 COPIES IN FRANCE AND MADE A BIG SPLASH IN THE US BUT NOW THAT IT IS SOVIET COMMUNISM THAT HAS PERISHED RATHER THAN WESTERN DEMOCRACY THE TITLE DOESN'T SEEM SO BRILLIANT INSTEAD OF BEING KNOWN AS THE COLD WARRIOR WHO GOT EVERYTHING RIGHT ABOUT COMMUNISM MR REVEL IS NOW FAMOUS AS THE CASSANDRA WHO GOT EVERYTHING WRONG ABOUT DEMOCRACY THE THEME OF MY BOOK WAS NOT THAT DEMOCRACIES WOULD PERISH MR REVEL NOW WRITES DANCING OUT FROM UNDER THE RUBBLE IN HIS FOLLOWUP BOOK DEMOCRACY AGAINST ITSELF THE FUTURE OF THE DEMOCRATIC IMPULSE FREE PRESS 278 PAGES 2495 OF COURSE HE IS RIGHT UP TO A POINT THE TITLE WAS MORE OF A WARNING OR AN IRONIC STATEMENT THAN A PREDICTION BUT THESE DAYS ONE CAN'T EXPECT OPED GLADIATORS TO PASS UP A SHOT AT MR REVEL SIMPLY ON ACCOUNT OF IRONIC INTENT AND IN TRUTH IT IS HARD TO IMAGINE MR REVEL AGREEING TO LAY DOWN HIS MIGHTY PEN IF HE FOUND ONE OF HIS POLITICAL OPPONENTS SIMILARLY VULNERABLE NOR IS IT INAPPROPRIATE THAT MR REVEL SHOULD FIND HIMSELF HOISTED BY HIS OWN TALENT FOR THE EYEPOPPING PHRASE HE IS A POLEMICIST WHICH IN THIS LATEST BOOK HE NICELY DESCRIBES AS THE ABILITY TO APPLY LOGIC AT WHITE HEAT MR REVEL WRITES THE SORT OF FRENCH BOOK THAT THUNDERS ACROSS A DOZEN SPECIALIZATIONS IS FEARLESS WITH SWEEPING ASSERTIONS AND IS EITHER DELIGHTFULLY PROVOCATIVE OR TOTALLY INFURIATING MR REVEL HAS SUCCEEDED IN THIS LINE OF WORK BY TAKING BOLD POSITIONS THAT AIM DIRECTLY AT PARISIAN PIETIES IN 1970 HE WROTE WITHOUT MARX OR JESUS WHICH CELEBRATED AMERICA AS THE CENTER OF LEFTWING SOCIAL REFORM AT A TIME WHEN THE BIENPENSANTS THOUGHT OF THE US AS THE CITADEL OF IMPERIALIST REACTION HE ONCE WROTE A BOOK CALLED FOR ITALY WHICH NATURALLY WAS AN ATTACK ON ITALY HIS MAJOR ANTICOMMUNIST BOOKS SCORNED REVOLUTIONARY ROMANTICISM AND SOPHISTICATED DETENTISTS DEMOCRACY AGAINST ITSELF IS HIS LEAST SUCCESSFUL BOOK IN PART BECAUSE PARISIAN CONVENTIONAL WISDOM NO LONGER OFFERS MANY IDEOLOGICAL TARGETS HE HAS COLLECTED HIS THOUGHTS FROM THE 199091 PERIOD ON EVERYTHING FROM AFRICAN UNDERDEVELOPMENT TO THE WEST'S FONDNESS FOR MIKHAIL GORBACHEV BUT THE ARGUMENTS WANDER IN SEARCH OF A PIETY TO DEMOLISH HIS JUDGMENTS ARE GENERALLY SOUND BUT ARE NO MORE SOPHISTICATED THAN THE POINTS MANY PEOPLE WERE MAKING IN NEWSPAPERS AT THE TIME THE THEME THAT LOOSELY UNITES THE DIVERSE SUBJECT AND WHICH REBOUNDS BACK TO HOW DEMOCRACIES PERISH IS THAT HUMAN BEINGS HAVE A PREDISPOSITION TO TOTALITARIANISM THERE IS WITHIN US AN UNCHANGED IMPULSE WHICH PREFERS FAILURE TO SUCCESS MISFORTUNE TO HAPPINESS MIGHT OVER RIGHT VIOLENCE OVER JUSTICE HE WRITES HE'S NOT SAYING THAT MANKIND IS SUICIDAL MERELY THAT WE WILL ALWAYS FEEL TEMPTED BY UTOPIANISM SO THAT THE BETTER PART OF US MUST BE FOREVER AT WAR WITH THAT TEMPTATION THIS ATTITUDE EXPLAINS THE VEHEMENCE OF MR REVEL'S STYLE OF ARGUMENT BUT IT ALSO EXPLAINS WHY MR REVEL SEEMS OFFSTRIDE OR UNORIGINAL WHEN TALKING ABOUT INTRADEMOCRATIC DISPUTES HE IS BEST WHEN THE SURVIVAL OF DEMOCRACY IS AT STAKE A SUPERB CHAPTER IN THIS BOOK CONCERN'S THE WEST'S PUSILLANIMOUS REACTION TO THE FATWA AGAINST SALMAN RUSHDIE A DEATH THREAT AGAINST A MAN SIMPLY FOR WHAT HE WROTE DOES REPRESENT AN ASSAULT ON DEMOCRACY AND MR REVEL IS DEVASTATING IN HIS ASSAULT ON FRANCOIS MITTERRAND MARGARET THATCHER AND OTHERS WHO FAILED TO RECOGNIZE IT AS A MATTER OF HIGH PRINCIPLE BUT THEN MR REVEL GOES TOO FAR AND DESCRIBES ISLAM AS FUNDAMENTALLY HOSTILE TO DEMOCRACY THE COMMUNIST THREAT FOR THE 1990S MR REVEL'S BELIEF IN THE ETERNAL HUMAN WEAKNESS FOR UTOPIANISM ALSO CAUSES HIM TO ASCRIBE TOO MUCH POWER TO HIS PHILOSOPHICAL OPPONENTS SIMPLY BECAUSE JEANPAUL SARTRE OR NORMAN MAILER SAID SOMETHING FOOLISH ABOUT COMMUNISM DID NOT MEAN THAT THE WHOLE WORLD BELIEVED IT AND IN FACT IT DID JOT MOST OF HUMANITY KNEW THAT COMMUNISM WAS A SCAM RIGHT FROM THE START AND DIDN'T FEEL TEMPTED IN THE SLIGHTEST AND NOWADAYS EVEN MOST INTELLECTUALS HAVE COME TO ACCEPT THAT COMMUNISM IS MALEVOLENT RATHER THAN AN ALTERNATIVE SYSTEM THAT WOULD EVENTUALLY MERGE WITH CAPITALISM ONE WOULD HAVE THOUGHT THAT THE LESSON OF THE RECENT PAST IS NOT THAT PEOPLE HAVE A WEAKNESS FOR TOTALITARIANISM BUT THAT EVEN AFTER LIVING UNDER COMMUNISM FOR 70 YEARS PEOPLE STILL HAVE A HUNGER FOR DEMOCRACY FOR NICE PRODUCTS FOR FREE EXPRESSION FOR A LIFE OF DIGNITY MR REVEL'S BOOK REFLECTS NONE OF THIS HE FOUGHT BRAVELY AGAINST COMMUNISM BUT THESE DAYS THE WAY TO ENRICH DEMOCRACY MAY BE TO ENJOY ITS FRUITS RATHER THAN TO BASH ITS FEW REMAINING FOES SUGGESTED TITLE FOR MR REVEL'S NEXT BOOK HOW DEMOCRACIES PICNIC MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9401120070 940112 BUSINESS BRIEF GREAT LAKES CHEMICAL CORP OCTEL TO SUPPLY FUEL PRODUCT TO COMPETITOR ETHYL CORP GREAT LAKES CHEMICAL CORP'S ASSOCIATED OCTEL UNIT AGREED TO PROVIDE ETHYL CORP WITH LEAD ANTIKNOCK COMPOUND BEGINNING JULY 1 THE PACT WILL MAKE OCTEL THE WORLD'S DOMINANT MAKER OF THE ADDITIVE KNOWN AS TETRAETHYL LEAD BUT THE TWO COMPANIES STRESSED THAT THEY'LL REMAIN COMPETITORS IN THE DWINDLING MARKET FOR THE PRODUCT GREAT LAKES A SPECIALTYCHEMICAL AND FUELADDITIVE MAKER BASED IN WEST LAFAYETTE IND SAID THAT WITH THE PACT OCTEL NOW EXPECTS TO DEFER CAPACITY CUTBACKS FOR SEVERAL YEARS ETHYL BASED IN RICHMOND VA SAID ITS ETHYL CANADA UNIT WILL END PRODUCTION OF LEAD ANTIKNOCK MATERIALS ITS SARNIA CANADA PLANT MARCH 31 CUTTING ABOUT 135 JOBS 9401120069 940112 NOLAND'S DECEMBER SALES ROSE NEWPORT NEWS VA NOLAND CO REPORTED A 27 INCREASE IN DECEMBER SALES TO 338 MILLION FROM THE YEARAGO 329 MILLION CITING MODEST INCREASES IN RESIDENTIAL CONSTRUCTION NOLAND A WHOLESALE DISTRIBUTOR OF PLUMBING HEATING AIR CONDITIONING AND ELECTRICAL EQUIPMENT SAID THE INCREASE BOOSTED FOURTHQUARTER SALES TO 1006 MILLION FROM THE YEARAGO 1001 MILLION BUT SALES FOR THE YEAR FELL 22 TO 403 MILLION FROM 4121 MILLION 9401120068 940112 TECHNOLOGY BRIEF SEAGATE TECHNOLOGY INC FISCAL 2NDQUARTER EARNINGS FELL 33 HIT BY PRICE WAR SEAGATE TECHNOLOGY INC CONTINUING TO SEE PROFITS HIT BY PRICE WARS IN THE HARDDRIVE MARKET REPORTED A 33 DROP IN FISCAL SECONDQUARTER NET INCOME THE SCOTTS VALLEY CALIF DISKDRIVE MAKER REPORTED NET INCOME OF 427 MILLION OR 59 CENTS A SHARE FOR THE QUARTER ENDED DEC 31 COMPARED WITH 633 MILLION OR 91 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 8159 MILLION FROM 7767 MILLION A YEAR EARLIER SEAGATE'S SECONDQUARTER RESULTS INCLUDE A 13 MILLION PRETAX CHARGE FOR THE COMPLETION OF THE ACQUISITION OF CALTEX SOFTWARE INC THE EARNINGS DROP WAS CAUSED BY A PRICE WAR AS RIVAL DRIVE MAKERS INCREASED PRODUCTION TO VIE FOR MARKET SHARE SAID ALAN SHUGART SEAGATE'S CHIEF EXECUTIVE OFFICER GROSS PROFIT MARGINS FELL TO 19 FOR THE QUARTER FROM 24 A YEAR EARLIER HE SAID 9401120067 940112 DRS INDUSTRIES TO CHANGE NAME NEW YORK DRS INDUSTRIES INC SAID IT WILL CHANGE ITS NAME TO FAMILY BARGAIN CORP TOMORROW THE APPAREL RETAILER AND DISTRIBUTION COMPANY SAID THE NEW NAME MORE ACCURATELY REFLECTS ITS PRINCIPAL BUSINESS OFFPRICE APPAREL RETAILING 9401120066 940112 MARKETING BRIEF NEW YORK TIMES CO PRETAX CHARGE OF 30 MILLION REFLECTS PLAN TO TRIM STAFF NEW YORK TIMES CO NEW YORK SAID IT PLANS A PRETAX CHARGE OF 30 MILLION IN FOURTHQUARTER 1993 PROFIT REFLECTING A PLAN TO CUT WHITECOLLAR STAFF AT THE NEW YORK TIMES NEWSPAPER OVER THE NEXT FEW YEARS THE COMPANY SAID THE CHARGE EQUAL TO 19 CENTS A SHARE IS LINKED TO SEVERANCE AND OTHER COSTS OF THE PROTRACTED LAYOFFS OF CLERICAL SALES NEWS AND EDITORIAL EMPLOYEES A SPOKESWOMAN SAID THE TIMES DOESN'T BREAK OUT ITS WHITECOLLAR EMPLOYEES FROM ITS TOTAL WORK FORCE OF 10000 IN JULY 1991 THE TIMES LAID OFF ABOUT 160 WHITECOLLAR STAFF SHE SAID THE NEWSPAPER GUILD OF NEW YORK WHICH REPRESENTS ABOUT 1600 EDITORIAL AND COMMERCIAL STAFFERS AT THE TIMES SAID THE UNION'S PRIMARY CONCERN IS THAT TIMES MANAGEMENT MAY TRY TO LAY OFF WORKERS ON AN AD HOC BASIS RATHER THAN ON THE BASIS OF SENIORITY THE TIMES EMPLOYEES' CONTRACT EXPIRED IN MARCH 1993 9401120065 940112 BUSINESS BRIEF FIFTH THIRD BANCORP CUMBERLAND TO BE ACQUIRED IN 149 MILLION STOCK SWAP FIFTH THIRD BANCORP SAID IT HAS AGREED TO ACQUIRE CUMBERLAND FEDERAL BANCORPORATION IN A STOCK SWAP WITH AN INDICATED VALUE OF ABOUT 149 MILLION CUMBERLAND OF LOUISVILLE KY HAS 11 BILLION IN ASSETS FIFTH THIRD HAS 114 BILLION IN ASSETS THE CINCINNATI BANKHOLDING COMPANY WHICH ALREADY HAS A PRESENCE IN NORTHERN AND CENTRAL KENTUCKY SAID THIS WILL BE ITS BIGGEST ACQUISITION IN THE STATE UNDER THE DEFINITIVE AGREEMENT CUMBERLAND SHAREHOLDERS WILL RECEIVE FIFTH THIRD STOCK WORTH 57 FOR EACH CUMBERLAND SHARE THE EXCHANGE RATIO WILL BE DETERMINED BASED ON FIFTH THIRD'S AVERAGE PRICE DURING THE 20 DAYS BEFORE THE TRANSACTION CLOSES BASED ON THE MOST RECENT 20DAY TRADING PERIOD CUMBERLAND SHAREHOLDERS WOULD RECEIVE 111 SHARES OF FIFTH THIRD FOR EACH CUMBERLAND SHARE FIFTH THIRD EXPECTS TO CLOSE THE TRANSACTION IN THE THIRD QUARTER IN LATE NASDAQ STOCK MARKET TRADING FIFTH THIRD WAS QUOTED AT 5025 DOWN 875 CENTS 9401120064 940112 MARKETING & MEDIA PIZZA INN GOES TO SOUTH AMERICA DALLAS PIZZA INN INC SAID IT PLANS TO OPEN AT LEAST 60 RESTAURANTS IN BRAZIL PARAGUAY AND URUGUAY UNDER A LICENSING AGREEMENT WITH BRASIF COMERCIAL EXPORTACAO E IMPORTACAO LTDA THE NEW PIZZA INN RESTAURANTS WILL MARK THE COMPANY'S FIRST SOUTH AMERICAN PRESENCE TERMS OF THE LICENSING AND ROYALTY AGREEMENT WEREN'T DISCLOSED 9401120063 940112 BUSINESS BRIEF CENTRAL MAINE POWER CORP CONCERN TO IDLE 225 WORKERS CUT ITS OPERATING BUDGET CENTRAL MAINE POWER CORP CITING THE HIGH PRICE OF ALTERNATEENERGY SUPPLIES SAID IT WILL LAY OFF 225 EMPLOYEES ABOUT 10 OF ITS WORK FORCE AND CUT ITS OPERATING BUDGET BY 22 MILLION OR 12 THIS YEAR THE MEASURES WERE TAKEN TO STABILIZE RISING ELECTRICAL RATES WHICH HAVE JUMPED 40 OVER THE PAST FIVE YEARS THE INVESTOROWNED UTILITY SAID COMPANY SPOKESMAN MARK ISHKANIAN SAID THE UTILITY'S WOES STEM FROM EXPENSIVE LONGTERM CONTRACTS IT SIGNED WITH NONTRADITIONAL ELECTRICAL PRODUCERS WOODBURNING PLANTS TRASH INCINERATORS AND PAPER COMPANIES CENTRAL MAINE OF PORTLAND MAINE ENTERED INTO THE CONTRACTS AS PART OF A 1978 FEDERAL LAW DESIGNED TO ENCOURAGE ALTERNATE SUPPLIES OF ELECTRICITY THE COMPANY IS TRYING TO BUY OUT OR RENEGOTIATE THE CONTRACTS MANY OF WHICH DON'T EXPIRE UNTIL THE NEXT CENTURY 9401120062 940112 WESTINGHOUSE PLANS WRITEOFF OF 906 MILLION AFTERTAX CHARGE IS PART OF PLAN TO CUT JOBS SELL UNITS AID PENSION PLAN BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MOVING TO RESTRUCTURE UNDER ITS NEW CHAIRMAN WESTINGHOUSE ELECTRIC CORP ANNOUNCED FOURTHQUARTER AFTERTAX CHARGES TOTALING ABOUT 906 MILLION TO CUT WORKERS SELL BUSINESSES AND SHORE UP ITS UNDERFUNDED PENSION PLAN THE CHARGE ESTIMATED TO BE ABOUT 13 BILLION ON A PRETAX BASIS IS THE LATEST ATTEMPT BY WESTINGHOUSE TO CLEAN UP PROBLEMS STEMMING FROM A DISASTROUS FORAY INTO FINANCIAL SERVICES AS WELL AS SLUGGISH GROWTH IN ITS TRADITIONAL POWERGENERATION AND DEFENSEELECTRONICS BUSINESSES AS PART OF THE RESTRUCTURING THE PITTSBURGH COMPANY WILL CUT 6000 JOBS OVER THE NEXT TWO YEARS OR ABOUT 11 OF ITS WORK FORCE WITH 3400 LAYOFFS THE PLAN ALSO INCLUDES A PLANNED 500 MILLION PREFERREDSTOCK OFFERING TO BUOY ITS BALANCE SHEET AND A CUT IN THE ANNUAL DIVIDEND TO 20 CENTS A SHARE FROM 40 CENTS SAVING ABOUT 68 MILLION A YEAR IN AN INTERVIEW YESTERDAY BEFORE MEETING WITH SECURITIES ANALYSTS IN NEW YORK MICHAEL H JORDAN WESTINGHOUSE CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAUTIONED AGAINST EXPECTING A QUICK FIX THERE IS NO INSTANT MAGIC NO RABBIT IN THE HAT MR JORDAN SAID HE ADDED THAT HE TOLD WESTINGHOUSE'S BOARD RECENTLY THAT THIS IS NOT A ONEYEAR QUICK BOUNCEBACK OF EARNINGS THIS IS THREE YEARS OF SLUGGING IT OUT INVESTORS SHOWED LITTLE ENTHUSIASM FOR THE PLAN WESTINGHOUSE'S STOCK FELL 125 CENTS TO CLOSE AT 14 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BUT NICHOLAS P HEYMANN AN ANALYST WITH NATWEST SECURITIES CORP CALLED THE PLAN REASONABLE MR HEYMANN ADDED HE MADE A CREDIBLE CASE THAT ALL THE BUGS ARE SWEPT OUT FROM UNDER THE RUG THERE WON'T BE ANY MORE DISAPPOINTMENTS AND IF THERE ARE AS JORDAN SAID SOMEBODY ELSE WILL BE RUNNING THE COMPANY THE RESTRUCTURING IS THE 57YEAROLD MR JORDAN'S FIRST MAJOR INITIATIVE AT WESTINGHOUSE SINCE HE TOOK OVER THE TOP POSTS THERE JUNE 30 HE SUCCEEDED PAUL E LEGO WHO RESIGNED A YEAR AGO UNDER PRESSURE AFTER THE COMPANY RECORDED 5 BILLION IN CHARGES LARGELY FROM BAD LOANS IN ITS FINANCIALSERVICES UNIT FUNDAMENTALLY WE HAVE A CORE OF VERY SOUND BUSINESSES THAT WE JUST NEED TO UNBURDEN MR JORDAN SAID IT'S LIKE TRYING TO RUN A FOURMINUTE MILE WITH A 50POUND BACKPACK YOU'VE GOT TO TRY TO SHED IT TO GET A HEAD OF STEAM HE CONCEDED THAT WHATEVER WE DO WILL NOT MEET WALL STREET'S EXPECTATIONS BUT SAID HE DOESN'T FORESEE ADDITIONAL MAJOR CHARGES HE ADDED THAT HE REALIZES WESTINGHOUSE CAN'T CONTINUE TO UNVEIL A CHARGE EACH YEAR AS IT HAS IN THE PAST MR JORDAN SAID THE COMPANY ALREADY HAS CUT 20 TO 25 OF ITS WORK FORCE FROM 1988 THROUGH 1993 SO IT'S NOT LIKE PEOPLE ARE JUST SITTING ON THEIR HANDS ON AN PRETAX BASIS THE CHARGES INCLUDE 350 MILLION FOR JOB CUTS 215 MILLION FOR DIVESTING AND RESTRUCTURING NONESSENTIAL BUSINESSES AND 185 MILLION TO RESOLVE LEGAL DISPUTES AND AN ENVIRONMENTAL CLEANUP IN INDIANA ON AN AFTERTAX BASIS THERE IS ALSO A 95 MILLION CHARGE FOR DISCONTINUED OPERATIONS IN ADDITION WESTINGHOUSE SAID CHANGES IN ITS UNDERFUNDED PENSION PLAN WILL FORCE A 255 MILLION AFTERTAX CHARGE TO EQUITY IN PART FOR CUTTING ITS ASSUMED DISCOUNT RATE TO 725 FROM 8 THE COMPANY SAID THAT CHARGE WON'T AFFECT EARNINGS WESTINGHOUSE ALSO SAID IT WILL PUT 200 MILLION OF ITS COMMON STOCK INTO THE PENSION PLAN AND WESTINGHOUSE WILL TAKE A 56 MILLION AFTERTAX CHARGE FOR A CHANGE IN HOW IT ACCOUNTS FOR CERTAIN EMPLOYEE BENEFITS WESTINGHOUSE ALSO SAID IT TOOK ITS UNPROFITABLE KNOLL FURNITURE UNIT OFF THE SALE BLOCK WESTINGHOUSE COULDN'T FIND A BUYER WILLING TO PAY A HIGH ENOUGH PRICE MR JORDAN SAID THE UNIT WILL CHANGE ITS STRATEGY TO TARGET SMALLER CUSTOMERS INSTEAD OF ENTIRE OFFICE BUILDINGS THAT SHOULD PRODUCE A TURNAROUND IN TWO OR THREE YEARS HE SAID WHERE WE GO FROM THERE I DON'T KNOW MR JORDAN ADDED THAT HE EXPECTS THE COMPANY TO NAME A NEW CHIEF FINANCIAL OFFICER BY THE END OF THE MONTH WARREN H HOLLINSHEAD SAID IN SEPTEMBER THAT HE WOULD RETIRE FROM THE POST MR JORDAN SAID HE VIEWS THE SALE OF 500 MILLION OF PREFERRED STOCK IN THE YEAR'S FIRST HALF AS CRUCIAL TO WESTINGHOUSE'S SUCCESS THE COMPANY MUST REBUILD ITS EQUITY BASE WHICH HAS BEEN ERODED BY PAST CHARGES AND RESTORE ITS FINANCIAL FLEXIBILITY FOR INSTANCE IT WANTS TO INVEST 50 MILLION IN CHINA THIS YEAR IN JOINT VENTURES IN POWER GENERATION MOREOVER OVERSEAS CUSTOMERS HAVE EXPRESSED CONCERN ABOUT WESTINGHOUSE'S FINANCIAL SITUATION MANY ON WALL STREET CONSIDER WESTINGHOUSE TO BE LARGELY IN SLOWGROWTH BUSINESSES BUT MR JORDAN SAID THE OPPORTUNITIES FOR GROWTH IN OUR CORE BUSINESSES ARE STRONGER THAN I BELIEVED FOR INSTANCE IN POWER GENERATION THE COMPANY CAN BOOST ITS HIGHLY PROFITABLE SERVICE BUSINESS BY WORKING WITH CUSTOMERS TO SOLVE PROBLEMS INSTEAD OF SIMPLY PITCHING PARTS IN BROADCASTING HE SAID WESTINGHOUSE IS AIMING FOR THE TOP SPOT IN THE RADIO INDUSTRY WHERE IT'S NO 3 NOW WESTINGHOUSE IS REDUCING COSTS BY COMBINING OPERATIONS EVEN IN NUCLEAR POWER LARGELY CONSIDERED A STAGNANT INDUSTRY MR JORDAN SAID WESTINGHOUSE HAS NEW BUSINESS OPPORTUNITIES IN UPGRADING PLANTS IN EASTERN EUROPE AND THE FORMER SOVIET UNION IN THE US WESTINGHOUSE CAN SNAG BUSINESS BY HELPING HIGHCOST NUCLEAR POWER PLANTS CUT MAINTENANCE AND ENGINEERING EXPENSES IN 1992'S FOURTH QUARTER WESTINGHOUSE POSTED A LOSS OF 118 BILLION OR 344 A SHARE ON REVENUE OF 235 BILLION BUSINESSES ON THE BLOCK INCLUDE PARTS OF THE COMPANY'S ENVIRONMENTALSYSTEMS UNIT SUCH AS ITS RESOURCE ENERGY SYSTEMS COMPRISING FOUR WASTETOENERGY PLANTS AND CONTROLMATIC A GERMANBASED EMISSIONS CONTROL AND INSTRUMENTATION BUSINESS WESTINGHOUSE ALSO MAY SELL PARTS OF ITS INDUSTRIAL PRODUCTS AND SERVICES GROUP IN ADDITION IT MOVED UP PLANS TO SELL ITS REALESTATE DEVELOPMENT ARM TO THIS YEAR FROM 1995 GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE 9401120061 940112 TECHNOLOGY BRIEF NINTENDO OF AMERICA INC CONCERN TO CLOSE US PLANT MOVE OPERATIONS TO MEXICO NINTENDO OF AMERICA INC SAID IT WILL LAY OFF 136 WORKERS AND CLOSE MANUFACTURING OPERATIONS IN REDMOND WASH MOVING TO MEXICO THE PRODUCTION OF HARDWARE AND SOFTWARE FOR LATIN AMERICAN MARKETS THE US UNIT OF JAPAN'S NINTENDO CO HAD USED THE PLANT TO MAKE GAME COMPUTERS AND SOFTWARE FOR LATIN AMERICA BUT IMPORTED FROM JAPAN ALL PRODUCTS INTENDED FOR THE US MARKET BUT LATIN AMERICAN MARKETS HAVE GROWN RAPIDLY SAID PHILIP ROGERS NINTENDO'S VICE PRESIDENT OF OPERATIONS AND THE MOST EFFECTIVE WAY TO SERVE THAT MARKET WAS TO TRANSFER MANUFACTURING TO MEXICO SEPARATELY NINTENDO SAID IT SETTLED A LAWSUIT AGAINST TAIWANBASED UNITED MICROELECTRONICS CORP AND ITS US UNIT THE SUIT ALLEGED COPYRIGHT AND TRADEMARK INFRINGEMENTS IN THE SALE OF COUNTERFEIT NINTENDO VIDEO GAMES THE SETTLEMENT OF THE SUIT BROUGHT IN US DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA CALLS FOR UNITED TO COMBAT PIRACY OF NINTENDO GAMES 9401120060 940112 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN RETROACTIVE TAX CHANGES FACE A STIFF TEST SOON IN THE SUPREME COURT DOES THE GOVERNMENT HAVE THE RIGHT TO CHANGE TAX LAWS RETROACTIVELY THAT'S WHAT A LOT OF PEOPLE WANTED TO KNOW AFTER THE 1993 TAX LAW PASSED LAST AUGUST RAISED RATES ON MANY UPPERINCOME TAXPAYERS AS OF JAN 1 1993 FOR DECADES THE SUPREME COURT AND FEDERAL APPEALS COURTS HAVE SAID THE GOVERNMENT HAS THAT RIGHT NOW THIS QUESTION HAS REEMERGED IN THE CASE OF US VS CARLTON TO BE ARGUED FEB 28 THE SUPREME COURT AGREED TO REVIEW THE CASE AFTER A FEDERAL APPEALS COURT IN 1992 INVALIDATED AN ESTATETAX CHANGE THAT CONGRESS PASSED IN DECEMBER 1987 AND MADE RETROACTIVE TO OCTOBER 1986 THAT CHANGE WAS SINGULARLY HARSH AND OPPRESSIVE AND VIOLATED DUE PROCESS ARGUES RUSSELL ALLEN OF O'MELVENY & MYERS LAWYERS FOR CARLTON THE CASE WILL BE WATCHED CLOSELY SAYS ALAN HOROWITZ OF MILLER & CHEVALIER A WASHINGTON LAW FIRM THE DECISION SHOULD TELL IF THE COURT WILL CONSIDER ANY RELAXATION OF WHAT HAVE BEEN VIRTUALLY INSURMOUNTABLE BARRIERS TO SUCH CHALLENGES WHATEVER THE OUTCOME SOME REPUBLICAN SENATORS STILL HOPE TO PERSUADE CONGRESS TO REPEAL RETROACTIVE PROVISIONS OF THE NEW LAW THE LOBBYING EMPIRE STRIKES BACK AT REPEAL OF LOBBYINGEXPENSE DEDUCTIONS LOBBYISTS SUFFERED A BIG BLOW LAST YEAR WHEN CONGRESS AT PRESIDENT CLINTON'S URGING ELIMINATED DEDUCTIBILITY OF MOST LOBBYING EXPENSES EFFECTIVE THIS YEAR BUT SOME FREQUENTERS OF GUCCI GULCH STILL REFUSE TO ADMIT DEFEAT RECENTLY 11 NONPROFIT TRADE GROUPS AND PROFESSIONAL SOCIETIES INCLUDING THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES FILED A LAWSUIT CONTENDING THEIR RIGHTS OF FREE SPEECH PETITION AND ASSOCIATION ARE IMMINENTLY THREATENED BY THE NEW RULES BUT SOME TAX LAWYERS DISAGREE DONALD ALEXANDER A WASHINGTON LAWYER AT AKIN GUMP AND A FORMER IRS COMMISSIONER CALLS THE RULES BAD TAX POLICY BUT NOT UNCONSTITUTIONAL MEANWHILE BUSINESSES ARE TRYING TO PERSUADE IRSREGULATION WRITERS TO EASE RECORDKEEPING BURDENS AND CLARIFY MANY KEY ISSUES SUCH AS HOW TO DEFINE LOBBYING TURNING IN TAX EVADERS TO THE IRS CAN BE SURPRISINGLY LUCRATIVE YOU CAN EARN A HANDSOME REWARD FROM THE IRS IF YOU HAND OVER INFORMATION THAT ENABLES IT TO COLLECT TAXES FROM DEADBEATS TOTAL REWARDS PAID IN THE YEAR ENDED SEPT 30 SOARED TO A RECORD 53 MILLION FROM 17 MILLION THE YEAR BEFORE EASILY ECLIPSING THE PREVIOUS RECORD OF 28 MILLION IN 1990 THE IRS PAID 829 REWARDS LAST YEAR UP FROM 671 THE PRIOR YEAR AND THE SECOND HIGHEST EVER REWARDS DEPEND ON HOW VALUABLE THE IRS CONSIDERS THE TIP TO BE ALL REWARDS OF COURSE ARE FULLY TAXABLE TO GET ANY REWARD THE TIPSTER MUST PROVIDE SPECIFIC DETAILED DATA NOT JUST SUSPICIONS SINCE THE LATE 1960S THE IRS HAS PAID REWARDS ON ONLY 84 OF THE 177298 CLAIMS IT RECEIVED THE AVERAGE REWARD 1772 WHILE CRITICS SAY THE PROGRAM SMACKS OF BIG BROTHERISM THE IRS SAYS SNITCHES OFTEN PROVIDE VALUABLE INFORMATION THANKS TO TIPSTERS THE IRS SAYS IT COLLECTED 1721 MILLION IN EXTRA TAXES LAST YEAR MORE THAN DOUBLE 1992'S TOTAL IS THIS PROGRESS BACK IN 1913 THE FIRST TAX GUIDE ISSUED BY CCH INC A BIG TAX PUBLISHER CONSISTED OF ONE 400PAGE VOLUME TODAY CCH'S STANDARD FEDERAL TAX REPORTER TOTALS ABOUT 36000 PAGES IN 22 VOLUMES JUST SINCE 1986 CCH HAS COUNTED ABOUT 5000 TAXLAW CHANGES CREDIBILITY GAP THE TREASURY SAYS ONLY 2 OF TAXPAYERS WILL BE HIT BY THE NEW LAW'S HIGHER RATES BUT 75 OF INVESTORS SURVEYED BY FIDELITY INVESTMENTS AND YANKELOVICH PARTNERS SAID THEY THINK THEY WILL PAY MORE AVERAGE HOUSEHOLD INCOME IN THAT SURVEY 65000 THE JUSTICE DEPARTMENT MAY ARGUE BEFORE THE SUPREME COURT FOR CALIFORNIA IN A BATTLE OVER STATE TAXES OF MULTINATIONAL COMPANIES BUT CALIFORNIA WANTS TO SEE THE DEPARTMENT'S BRIEF EXPECTED BY NEXT WEEK JOBHOPPERS DON'T FORGET TO CALCULATE THE IMPACT OF STATE AND LOCAL INCOME TAXES IN SOME CASES STATE AND LOCAL INCOME TAXES CAN PLAY A BIG ROLE IN HELPING TO DECIDE WHETHER IT PAYS TO ACCEPT A NEW JOB OUT OF TOWN SAYS ROBERT GARNER OF ERNST & YOUNG SOMEONE MOVING FROM A STATE WITH NO INCOME TAX SUCH AS FLORIDA OR TEXAS TO A HIGHTAX AREA SUCH AS NEW YORK OR WASHINGTON MIGHT DISCOVER A PAY INCREASE TURNS INTO A PAY CUT AFTER STATE AND LOCAL TAXES BUT A PAY CUT MAY BECOME AN INCREASE FOR SOMEONE MOVING TO A LOWTAX STATE CONSIDER A COUPLE WITH TWO CHILDREN AND TYPICAL ITEMIZED DEDUCTIONS IF THE COUPLE EARNED 100000 AND MOVED TO FLORIDA FROM NEW YORK CITY LAST YEAR THEIR TOTAL INCOMETAX BILL WOULD BE ABOUT 6500 LESS GARNER SAYS MOVING TO ARIZONA WOULD CUT THEIR TAX BILL MORE THAN 3800 IF THE COUPLE EARNED 50000 AND MOVED TO FLORIDA OR TEXAS THEIR TAX BILL WOULD BE ABOUT 3000 LESS THESE FIGURES REFLECT FEDERAL DEDUCTIBILITY OF STATE AND LOCAL TAXES DIFFERENCES IN PROPERTY SALES AND OTHER LOCAL TAXES ALSO MAY CHANGE THE BOTTOM LINE SIGNIFICANTLY GARNER ADDS BRIEFS BREAKING THE LANGUAGE BARRIER NOW THAT THE IRS IS PROVIDING A SPANISHLANGUAGE FORM 1040A TO SOME REGIONS TAX LAWYER CONRAD TEITELL ASKS CAN IRS FORMS WRITTEN IN ENGLISH BE FAR OFF NO ARGUMENT HERE CONGRESS'S DECISIONS WITH RESPECT TO TAX POLICY DO NOT ALWAYS FIT A NEAT AND LOGICAL PATTERN US APPEALS COURT JUDGE STEPHEN REINHARDT WROTE IN A RECENT CASE SOMETIMES THEY ARE EVEN INFLUENCED BY LESSTHANOBJECTIVE FORCES 9401120059 940112 BUSINESS BRIEF SLOAN'S SUPERMARKETS INC TWO MAJOR INVESTORS BUY 57 OF COMPANY'S COMMON SLOAN'S SUPERMARKETS INC SAID INVESTORS GARY S FELDSTEIN AND BARBARA J FELDSTEIN ACQUIRED 57 OF THE COMPANY'S COMMON STOCK THE THIRD SUCH STOCK PURCHASE BY AN INVESTOR GROUP SINCE OCTOBER SLOAN'S SAID IN NEW YORK THAT A 13D FILING BY THE INVESTORS SAID THEY HAD PURCHASED 135800 SHARES IN OCTOBER A GROUP COMPRISING REGAN PARTNERS LIMITED PARTNERSHIP AND ATHENA PARTNERS LIMITED PARTNERSHIP REPORTED ACQUIRING 122400 SHARES OR A 51 STAKE IN NOVEMBER RMED INTERNATIONAL INC PURCHASED 225100 SHARES OR A 94 STAKE SLOAN'S CURRENTLY HAS 24 MILLION SHARES OUTSTANDING A SLOAN'S SPOKESMAN SAID THE INVESTORS AREN'T RELATED AND THAT THE COMPANY WELCOMES THE INTEREST 9401120058 940112 BUSINESS BRIEF NEOPROBE CORP COMPANY ISRAELI CONCERN REACH INITIAL PACT ON UNIT NEOPROBE CORP SAID IT REACHED A MEMORANDUM OF UNDERSTANDING WITH PRIVATE ROTEM INDUSTRIES LTD TO FORM A NEW UNIT TO BE CALLED NEOPROBEISRAEL WHICH WILL BUILD AND OPERATE A FACILITY IN ISRAEL FOR NEOPROBE'S CANCERTARGETING PRODUCTS NEOPROBE BASED IN COLUMBUS OHIO SAID IT WILL INVEST ABOUT 1 MILLION IN THE VENTURE THE COMPANY ALSO SAID THE MEMORANDUM IS CONTINGENT UPON GUARANTEES OF UP TO 3 MILLION FROM THE ISRAELI GOVERNMENT FOR FUNDING THE CONTRACT FOR THE FACILITY AND CLINICAL TESTING OF PRODUCTS NEOPROBE SAID IT WILL OWN 95 OF THE CAPITAL STOCK OF THE NEW UNIT AND ROTEM WITH THE REMAINDER WILL MANAGE THE FACILITY NEOPROBE SAID IT EXPECTS FINAL AGREEMENTS EARLY IN THE SECOND QUARTER NEOPROBE SAID ROTEM A PRIVATE ARM OF THE ISRAELI ATOMIC ENERGY COMMISSION MANUFACTURES RADIOISOTOPES AND OTHER NUCLEAR MEDICAL PRODUCTS 9401120057 940112 BUSINESS BRIEF REVLON INC MERGER DISCUSSION IS ENDED WITH PERFUMANIA A RETAILER RETAILER PERFUMANIA INC AND REVLON CONSUMER PRODUCTS CORP ENDED MERGER DISCUSSIONS AND SAID THEY ARE NOW EXPLORING POSSIBLE APPROACHES FOR REVLON TO BUY PERFUMANIA'S RETAIL STORES REVLON AND PERFUMANIA SAID THAT REVLON'S 137STORE PRESTIGE FRAGRANCE & COSMETICS INC OUTLET IS HOLDING TALKS TO ACQUIRE MIAMIBASED PERFUMANIA'S 139 DISCOUNT STORES AND INVENTORY PERFUMANIA CHAIRMAN ILLA LEKACH SAID THE RETAIL DIVISION HAD ANNUAL SALES OF 56 MILLION WHILE PERFUMANIA'S WHOLESALE DIVISION HAD ANNUAL SALES OF 36 MILLION THE COMPANIES HAD SIGNED A NONBINDING LETTER OF INTENT TO MERGE REVLON'S PRESTIGE FRAGRANCE WITH PERFUMANIA IN EXCHANGE FOR PERFUMANIA STOCK VALUED AT 349 MILLION WHICH WOULD HAVE GIVEN REVLON A 505 CONTROLLING INTEREST IN PERFUMANIA THE AGREEMENT ENDED BECAUSE MR LEKACH SAID BOTH PARTIES WEREN'T HAPPY WITH THE MERGER WHAT REVLON REALLY WANTED WAS THE RETAIL DIVISION A REVLON SPOKESMAN DECLINED TO ELABORATE NEW YORKBASED REVLON CONSUMER PRODUCTS IS OWNED BY REVLON INC WHICH IS CONTROLLED BY INVESTOR RONALD PERELMAN 9401120055 940112 BUSINESS BRIEF SUNWARD TECHNOLOGIES INC FISCAL SECONDPERIOD NET WILL BE ABOVE 25 MILLION SUNWARD TECHNOLOGIES INC SAN DIEGO EXPECTS TO REPORT NET INCOME OF MORE THAN 25 MILLION OR ABOUT 30 CENTS A SHARE ON SALES OF AROUND 32 MILLION FOR ITS FISCAL SECOND QUARTER ENDED DEC 26 CHAIRMAN AND CHIEF EXECUTIVE GREG REYES SAID THE EARNINGS WHICH TAKE INTO ACCOUNT A 1FOR5 REVERSE SPLIT OF ITS COMMON STOCK EFFECTIVE THIS PAST MONDAY MARK A REBOUND FROM THE COMPANY'S FIRST QUARTER ENDED SEPT 26 IN THAT PERIOD THE COMPANY POSTED A LOSS OF 19 MILLION OR FIVE CENTS A SHARE ON SALES OF 164 MILLION IN THE YEAREARLIER SECOND QUARTER SUNWARD HAD NET INCOME OF 36 MILLION OR EIGHT CENTS A SHARE ON SALES OF 321 MILLION THE COMPANY WILL REPORT EARNINGS FOR THE RECENT SECOND QUARTER TOMORROW SUNWARD HAD SUFFERED FROM POOR MARKET CONDITIONS BUT RECOVERED BY OFFERING A HIGHERCAPACITY DISKDRIVE MAGNETIC RECORDING HEAD THAT ITS CUSTOMERS WERE DEMANDING ON THE NASDAQ STOCK MARKET SUNWARD SHARES CLOSED AT 10125 DOWN 875 CENTS OR 8 9401120054 940112 BUSINESS BRIEF AMSCO INTERNATIONAL INC FISCAL 4THPERIOD NET TRAILED ESTIMATES SALES DROP CITED AMSCO INTERNATIONAL INC SAID IT DOESN'T EXPECT EARNINGS FOR THE FOURTH QUARTER ENDED JAN 2 MET ANALYSTS' PROJECTIONS BECAUSE SALES FELL AN ESTIMATED 10 ACCORDING TO FIRST CALL CORP AN AVERAGE OF FIVE ANALYSTS' ESTIMATES SET AMSCO'S FOURTHQUARTER EARNINGS AT 32 CENTS A SHARE WITH A RANGE OF BETWEEN 25 CENTS TO 34 CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER AMSCO HAD NET INCOME OF 153 MILLION OR 47 CENTS A SHARE ON REVENUE OF 1639 MILLION FOR THE FISCAL YEAR ENDED JAN 3 1993 AMSCO EARNED 119 MILLION OR 37 CENTS A SHARE ON SALES OF 4982 MILLION YEAREND NET INCLUDED AN ACCOUNTING ADJUSTMENT FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE ON PRIOR PERIODS AND A GAIN FROM SETTLEMENT OF LITIGATION OVER A PATENT PITTSBURGHBASED AMSCO INTERNATIONAL WHICH MAKES INFECTION CONTROL DECONTAMINATION AND SURGICAL PRODUCTS AND SERVICES FOR THE HEALTH CARE SCIENTIFIC AND INDUSTRIAL MARKETS SAID IT PLANS TO ANNOUNCE RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ON FEB 9 THE COMPANY SAID FOURTHQUARTER SALES WERE ESTIMATED TO BE 1476 MILLION DOWN 10 FROM 1639 MILLION THE YEAR EARLIER 9401120053 940112 BUSINESS BRIEF SEQUENT COMPUTER SYSTEMS INC LAYOFFS CHARGE AGAINST NET SET AS PART OF RESTRUCTURING SEQUENT COMPUTER SYSTEMS INC SAID IT EXPECTS TO LAY OFF 5 OF ITS WORK FORCE AND TAKE A FOURTHQUARTER CHARGE OF 15 MILLION TO 20 MILLION AS PART OF A RESTRUCTURING PLAN THE COMPUTER MAKER SAID THAT AS PART OF ITS FORMATION OF TWO NEW DIVISIONS IT HAS BEGUN THIS WEEK A LAYOFF THAT WILL EVENTUALLY COST THE JOBS OF ABOUT 85 OF ITS 1691 WORKERS BEFORE THE CHARGE SEQUENT SAID THE COMPANY EXPECTS TO REPORT NET INCOME FOR THE QUARTER OF 63 MILLION TO 8 MILLION OR 20 CENTS TO 25 CENTS A SHARE SEQUENT BASED IN BEAVERTON ORE SAID REVENUE FOR THE QUARTER WILL BE ABOUT 104 MILLION A RECORD IN THE YEAREARLIER QUARTER SEQUENT HAD NET OF 63 MILLION OR 23 CENTS A SHARE ON REVENUE OF 887 MILLION 9401120052 940112 STOP LAW THAT HURTS MY MINORITY BUSINESS BY NONA M BRAZIER OPPORTUNITIES TO CORRECT A LIFE GONE ASTRAY DON'T COME BY VERY OFTEN ESPECIALLY IN THE INNER CITY A FEW WEEKS AGO A LOCAL MINISTER APPROACHED ME ASKING IF MY COMPANY COULD HIRE 10 GANG MEMBERS WHO WANTED TO ESCAPE THE VIOLENCE OF THE STREETS AND LEARN A WORTHWHILE TRADE THEY WERE TIRED OF LIVING WITH BULL'S EYES ON THEIR BACKS THEY NEEDED JOBS I HAD NONE TO OFFER THE CONSTRUCTION COMPANY MY HUSBAND AND I CREATED TO HELP REBUILD SEATTLE AND TACOMA AND PROVIDE JOBS TO THE VERY KIDS I HAD JUST TURNED AWAY IS NOW DORMANT WHAT IS EVEN MORE DISHEARTENING HOWEVER IS THAT OUR COMPANY DID NOT WITHDRAW FROM THE MARKET BECAUSE OF MISMANAGEMENT OR A GENERAL DOWNTURN IN THE CONSTRUCTION INDUSTRY LIKE MANY MINORITYOWNED CONSTRUCTION FIRMS BRAZIER CONSTRUCTION NO LONGER OFFERS JOB OPPORTUNITIES BECAUSE OF ARTIFICIALLY HIGH LABOR COSTS THAT RESULT FROM RACIST FEDERAL LEGISLATION ENACTED MORE THAN 60 YEARS AGO THIS LEGISLATION IS FULFILLING ITS ORIGINAL EXPLICIT INTENT TO KEEP BLACK FIRMS FROM COMPETING FOR AND WINNING FEDERAL CONSTRUCTION PROJECTS THE DAVISBACON ACT WAS PASSED IN 1931 WHEN MIGRANT BLACK WORKERS COMPETED WITH WHITE UNION LABOR FOR SCARCE JOBS AT THE URGING OF UNIONS LIKE THE AMERICAN FEDERATION OF LABOR CONGRESS NEUTRALIZED BLACK LABOR COMPETITION BY REQUIRING THAT PREVAILING WAGES BE PAID ON ALL FEDERAL PROJECTS IN PRACTICE PREVAILING WAGES MEANT UNION WAGES WELLCAPITALIZED COMPANIES COULD AFFORD UNION WAGES BUT THEIR UNIONS USUALLY KEPT BLACKS OUT BLACK BUSINESSES WHICH WERE OFTEN LESS WELL CAPITALIZED COULD NOT AFFORD TO PAY THOSE PROHIBITIVE RATES ON LABOR THE LAW ALSO IMPOSED RIGID UNIONBASED JOB CLASSIFICATIONS WHICH ALONG WITH RESTRICTIVE APPRENTICESHIP REGULATIONS SHARPLY LIMIT EMPLOYERS' ABILITY TO HIRE OR TRAIN UNSKILLED WORKERS TODAY CONSTRUCTION UNIONS STILL TRY TO KEEP THE BLACK LABOR POOL OUT AND MANY BLACKOWNED FIRMS ARE STILL SMALL AND NONUNION TO SEEK DAVISBACON CONTRACTS USUALLY ANY CONTRACT INVOLVING THE PUBLIC SECTOR IN ANY WAY MINORITY FIRMS MUST NOT ONLY PAY INFLATED WAGES AND ADOPT INEFFICIENT WORK PRACTICES BUT MUST EXPOSE THEMSELVES TO HUGE COMPLIANCE COSTS AND THREATS OF LITIGATION AND UNION HARASSMENT FEW MINORITYOWNED FIRMS WIN DAVISBACON CONTRACTS AND MANY OTHERS LIKE MINE GIVE UP TRYING THE WIDENING NET OF FEDERAL GOVERNMENT MEANS THAT IN PRACTICE FEW CONTRACTS AVAILABLE TO MY BUSINESS FOR EXAMPLE ARE OUTSIDE THE POWER OF THE ACT DAVISBACON REMAINS A PRINCIPAL REASON WHY BLACKS ARE UNEMPLOYED AT TWICE THE RATE OF WHITES IN THE CONSTRUCTION TRADE AMERICANS OF AFRICAN DESCENT ENTERED THIS CENTURY WITH THE FOUNDATIONS OF OUR SOCIETY OUR PERSONAL INTEGRITY OUR MARRIAGES OUR FAMILIES OUR BUSINESSES OUR CHURCHES OUR SCHOOLS OUR COMMUNITIES INTACT BUT THROUGH REGULATIONS LIKE DAVISBACON WHICH STIFLE ECONOMIC OPPORTUNITY MUCH OF THIS SOCIAL FABRIC UNRAVELED IN THE MINORITY COMMUNITY A LACK OF CONSTRUCTION JOBS SHORTCIRCUITED TWO PRINCIPLES ESSENTIAL FOR BLACKS THE FIRST SAYS WATER IS WET FIRE BURNS AND PEOPLE HIRE THEIR OWN WITHOUT AFRICANAMERICAN BUILDERS OVERSEEING CONSTRUCTION INNERCITY RESIDENTS WOULD HAVE LESS CHANCE TO BE HIRED THE SECOND PRINCIPLE OFFERED BY MALCOLM X HOLDS A DOLLAR MUST CHANGE HANDS IN A COMMUNITY SIX TIMES BEFORE IT LEAVES THE COMMUNITY OR THE COMMUNITY DIES UNLESS CITY RESIDENTS ARE EMPLOYED THE ABILITY TO PASS A DOLLAR FROM ONE COMMUNITY MEMBER TO ANOTHER DIMINISHES OUR NATION AS A WHOLE ALSO PAYS A STEEP PRICE FOR DAVISBACON WHICH ACCOUNTS FOR 20 OF THE 232 BILLION CONSTRUCTION BUSINESS NATIONALLY A CONGRESSIONAL BUDGET OFFICE STUDY FOUND THE ACT COSTS TAXPAYERS 1 BILLION A YEAR IN UNNECESSARY LABOR COSTS AND 100 MILLION FOR REGULATION IT'S TIME TO END DAVISBACON THAT IS WHY MY COMPANY ALONG WITH FOUR OTHER BLACKOWNED CONSTRUCTION FIRMS HAS JOINED OTHERS AS PLAINTIFFS IN A LAWSUIT FILED BY A WASHINGTON DC GROUP THE INSTITUTE FOR JUSTICE CHALLENGING THE CONSTITUTIONALITY OF THE ACT MS BRAZIER AND HER HUSBAND MARTIN ARE COOWNERS OF SEATTLEBASED BRAZIER CONSTRUCTION CO 9401120051 940112 BUSINESS BRIEF PACKARD BELL ELECTRONICS INC PC MAKER TO MOVE SERVICE SUPPORT OPERATIONS TO UTAH PACKARD BELL ELECTRONICS INC SAID IT IS MOVING ITS SERVICE AND SUPPORT OPERATIONS FROM CALIFORNIA TO A SALT LAKE CITY SUBURB THE CLOSELY HELD PERSONAL COMPUTER MAKER BASED IN CHATSWORTH CALIF LEASED A 32000SQUAREFOOT FACILITY IN MAGNA UTAH AND OFFERED TO RELOCATE MOST OF ITS 420 SERVICE AND SUPPORT EMPLOYEES PACKARD BELL WHICH REPORTED 1993 REVENUE OF ABOUT 125 BILLION SAID IT EXPECTS TO EMPLOY ABOUT 600 SERVICE TECHNICIANS IN UTAH BY THE END OF 1994 THE COMPANY'S US SERVICE AND SUPPORT DEPARTMENT HANDLES ABOUT 60000 CALLS A WEEK FROM CUSTOMERS WITH QUESTIONS ABOUT PACKARD BELL COMPUTERS PACKARD BELL'S DECISION TO RELOCATE THE OPERATIONS TO UTAH FOLLOWS A FOURMONTH SEARCH THAT ALSO CONSIDERED SITES IN OREGON ARIZONA NORTH CAROLINA TEXAS COLORADO AND WASHINGTON 9401120050 940112 BUSINESS BRIEF CIBAGEIGY AG CIBA CANADA PLANS TO SELL BIOLOGICAL CONTROL BUSINESS CIBA CANADA MISSISSAUGA ONTARIO INTENDS TO SEEK A BUYER FOR ITS FIVEYEAROLD TRICHOGRAMMA BIOLOGICAL CONTROL BUSINESS UNIT CIBA SAID THE UNIT IS NOT PROVIDING SUFFICIENT RETURN ON ITS INVESTMENT TO JUSTIFY FURTHER FUNDING CIBA INVESTED IN THE PROJECT IN 1989 TO MASSPRODUCE TRICHOGRAMMA TINY PARASITIC WASPS THAT NATURALLY CONTROL SPRUCEBUDWORM INFESTATION IN CANADIAN FORESTS THE WASPS ARE WIDELY USED IN AGRICULTURAL PEST CONTROL THE PROJECT IS A PARTNERSHIP WITH THE ONTARIO TECHNOLOGY FUND THE ONTARIO MINISTRY OF THE NATURAL RESOURCES AND THE UNIVERSITIES OF GUELPH AND TORONTO THE GROUP ALTOGETHER HAS INVESTED 6 MILLION IN THE PROJECT WHICH INCLUDES A PILOT PLANT OPENED IN GUELPH ONTARIO IN 1992 CIBA CANADA A UNIT OF CIBAGEIGY AG BASEL SWITZERLAND SAID IT HOPES TO SELL THE PROJECT BY THE END OF APRIL 9401120049 940112 BUSINESS BRIEF DURAMED PHARMACEUTICALS INC COMPANY EXPECTS TO REPORT STRONG 4THQUARTER RESULTS DURAMED PHARMACEUTICALS INC CINCINNATI SAID IT EXPECTS FOURTHQUARTER RESULTS TO BE GREATER THAN ANY PREVIOUS QUARTERTOQUARTER IMPROVEMENTS REPORTED FOR 1993 IN THE 1992 FOURTH QUARTER DURAMED REPORTED A NET LOSS OF 41 MILLION OR 63 CENTS A SHARE ON SALES OF 54 MILLION IN A NEWS RELEASE DURAMED SAID IT EXPECTS ITS YEAREND AUDIT TO BE COMPLETED IN MARCH AND FINAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR TO BE RELEASED AT THAT TIME DURAMED MANUFACTURES AND SELLS GENERIC DRUG PRODUCTS 9401120048 940112 CANADIAN PACIFIC FOREST UNITS MONTREAL CANADIAN PACIFIC FOREST PRODUCTS LTD SAID IT AGREED TO SELL 2265 MILLION CANADIAN DOLLARS US1719 MILLION OF UNITS CONSISTING OF COMMON SHARES AND WARRANTS TO A GROUP OF CANADIAN UNDERWRITERS THE 600000 UNITS INCLUDE SIX MILLION COMMON SHARES PRICED AT C1875 EACH AND C114 MILLION OF 75 CONVERTIBLE UNSECURED DEBENTURES THE COMPANY'S SHARES HAD BEEN TRADING AT C2025 A SHARE IN TORONTO BEFORE THE STOCK WAS HALTED FOR THE ANNOUNCEMENT NEAR THE END OF YESTERDAY'S SESSION THE MONTREAL FORESTPRODUCT COMPANY SAID ABOUT C60 MILLION OF THE NET PROCEEDS WILL BE USED TO REPAY SUMS DRAWN UNDER CREDIT FACILITIES AND THE BALANCE WILL BE USED FOR GENERAL OPERATIONS AND CAPITAL EXPENDITURES THE SALE IS EXPECTED TO CLOSE FEB 8 THE DEBENTURES ARE CONVERTIBLE AT THE HOLDER'S OPTION UNTIL THE MATURITY DATE FEB 8 2004 AT C22 A COMMON SHARE FROM FEB 8 1999 THE DEBENTURES WILL BE REDEEMABLE AT PAR AT THE COMPANY'S OPTION 9401120047 940112 S&P MIDCAP 400 INDEX CHANGE NEW YORK STANDARD & POOR'S CORP SAID IT WILL REMOVE MERRYGOROUND ENTERPRISES INC FROM THE STANDARD & POOR'S MIDCAP 400 INDEX AFTER THE CLOSE OF TRADING TODAY IT WILL BE REPLACED BY EMC CORP A HOPKINTON MASS MAKER OF COMPUTERSYSTEM ENHANCEMENT PRODUCTS MERRYGOROUND A CLOTHING RETAILER BASED IN JOPPA MD FILED YESTERDAY FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE 9401120045 940112 BUSINESS BRIEF SEITEL INC SUBSIDIARY COMPLETES WORK ON TEXAS EXPLORATORY WELLS SEITEL INC SAID ITS DDD ENERGY INC UNIT COMPLETED DRILLING TWO EXPLORATORY WELLS IN THE VAN WEST FIELD NEAR TYLER TEXAS THE HOUSTON COMPANY SAID THE PALMER METCALF 1 FLOWED FROM TWO DIFFERENT SECTIONS OF THE RODESSA FORMATION FLOW FROM THE LOWER SECTION WAS 150 BARRELS OF OIL A DAY ON AN 8/64INCH CHOKE FLOW FROM THE UPPER SECTION WAS 1631 THOUSAND CUBIC FEET OF GAS A DAY ON A 12/64INCH CHOKE SEITEL SAID THE SECOND WELL FIFE 1 FLOWED FROM THE GLEN ROSE FORMATION AT A RATE OF 176 BARRELS OF OIL A DAY ON A 20/64INCH CHOKE DDD ENERGY AND UNION OIL CO OF CALIFORNIA A UNIT OF UNOCAL CORP EACH OWN A 25 WORKING INTEREST IN THE VAN WEST FIELD AS DOES CRAWFORD & CAMERON GROUP WHICH OPERATES AND MANAGES THE JOINT VENTURE THE REST IS SPREAD AMONG CLOSELY HELD COMPANIES AND INDIVIDUALS 9401120044 940112 OGDEN TO SHARE A CLEANUP JOB NEW YORK OGDEN CORP'S OGDEN ENVIRONMENTAL & ENERGY SERVICES CO UNIT SAID IT WAS ONE OF FOUR CONTRACTORS SELECTED TO HELP CLEAN UP HAZARDOUS WASTE PROBLEMS AT A US AIR FORCE BASE THE PROJECT KNOWN AS THE INSTALLATION RESTORATION PROGRAM AT KELLY AIR FORCE BASE IN TEXAS WILL ALLOW THE FOUR CONTRACTORS TO BID FOR WORK VALUED AT 195 MILLION OVER FIVE YEARS THE WORK INCLUDES FINDING AND REMEDYING CONTAMINATION PROBLEMS CAUSED BY PAST WASTEDISPOSAL PRACTICES IN LANDFILLS OIL PITS AND OTHER SITES 9401120043 940112 TECHNOLOGY INDICATOR FOR CHIP INDUSTRY ROSE SLIGHTLY IN DECEMBER SAN JOSE CALIF THE LEADING INDICATOR OF THE SEMICONDUCTOR INDUSTRY INCHED UP IN DECEMBER BOLSTERING MANY INDUSTRY EXPERTS' VIEW THAT THE CHIP MARKET WILL SEE MODERATE GROWTH THIS YEAR AFTER A STRONG 1993 THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID ITS BOOKTOBILL RATIO FOR THE NORTH AMERICAN MARKET IN DECEMBER STOOD AT 104TO1 UP FROM 099TO1 IN NOVEMBER BUT DOWN FROM THE YEAR'S HIGH OF 12TO1 IN JANUARY THE RATE OF 104 INDICATES THAT FOR EVERY 100 IN CHIPS SHIPPED THE INDUSTRY RECEIVED 104 IN ORDERS A RATE OF MORE THAN ONE INDICATES A GROWING MARKET 9401120042 940112 COMSTOCK RESOURCES PREFERRED DALLAS COMSTOCK RESOURCES INC SAID IT SOLD 600000 SHARES OF CONVERTIBLE PREFERRED STOCK FOR 6 MILLION THE STOCK PURCHASED BY INVESTMENT FUNDS MANAGED BY TRUST CO OF THE WEST RECEIVES A QUARTERLY DIVIDEND OF 225 CENTS A SHARE AND IS CONVERTIBLE INTO THE ENERGY COMPANY'S COMMON STOCK AT 4 A SHARE IN OVERTHECOUNTER TRADING YESTERDAY COMSTOCK CLOSED AT 3875 OFF 9375 CENTS OR 24 ON VOLUME OF 207100 SHARES PROCEEDS WILL BE USED FOR ACQUISITIONS COMSTOCK SAID IT ADDED THAT LIBERTY LIFE INSURANCE CO CONVERTED 150000 SHARES OF CUMULATIVE PREFERRED STOCK INTO 857143 SHARES OF COMMON STOCK OR 7 1/2 OF ALL SHARES OUTSTANDING 9401120041 940112 INTERNATIONAL BRIEF ITOCHU CORP COMPANY PLANS TO LIQUIDATE ITOCHU FINANCE SUBSIDIARY ITOCHU CORP TOKYO ANNOUNCED THAT IT WILL LIQUIDATE ITS UNPROFITABLE ITOCHU FINANCE CORP UNIT BY THE END OF MARCH AS A RESULT THE PARENT COMPANY ONE OF JAPAN'S SIX MAJOR TRADING COMPANIES EXPECTS TO REPORT AN EXTRAORDINARY LOSS OF ABOUT 28 BILLION YEN 2495 MILLION FOR THE YEAR ENDING MARCH 31 THAT INCLUDES THE 98 BILLION YEN LOSS FOR THE PARENT TIED TO THE SUBSIDIARY THAT WAS REALIZED IN THE FIRST HALF ENDED SEPT 30 ITOCHU SAID THE PARENT COMPANY HAS REVISED ITS NET INCOME OUTLOOK FOR THE CURRENT FISCAL YEAR DOWN TO AROUND TWO BILLION FROM THE SIX BILLION YEN FORECAST IN NOVEMBER 1993 ITOCHU FINANCE AT THE END OF LAST AUGUST REPORTED CUMULATIVE LOSSES OF 156 BILLION YEN A FIGURE 31 BILLION YEN LARGER THAN THE UNIT'S CAPITALIZATION OF 125 BILLION YEN THE PARENT COMPANY SAID 9401120040 940112 ALUMINUM TESTS CLINTON'S METTLE BY C FRED BERGSTEN WHAT WOULD BE THE BEST WAY TO CONVINCE RUSSIANS THAT THE US IS DETERMINED TO THWART THEIR EFFORTS TO BUILD A SUCCESSFUL MARKET ECONOMY HOW ABOUT BY LIMITING THEIR EXPORTS IN THE FEW INDUSTRIES WHERE THEY CAN NOW EARN FOREIGN EXCHANGE AND SPECIFICALLY HOW ABOUT BY FORCING NEWLY PRIVATIZED ENTERPRISES TO REVERT TO THE COMMUNIST PRACTICE OF FIXED OUTPUT QUOTAS SUCH A US BETRAYAL OF RUSSIAN ECONOMIC REFORM HAS ALREADY BEGUN AND COULD WIDEN EVEN AS PRESIDENT CLINTON SCOLDS THE EUROPEAN UNION FOR BLOCKING IMPORTS FROM FORMER COMMUNIST COUNTRIES AND JOURNEYS TO MOSCOW TO URGE THE RUSSIANS TO INTENSIFY THEIR MARKETORIENTED REFORMS IN 1992 THE BUSH ADMINISTRATION LEVIED ANTIDUMPING DUTIES ON IMPORTS OF URANIUM FROM RUSSIA AND OTHER PRODUCERS IN THE FORMER SOVIET UNION THESE DUTIES HAVE RECENTLY BEEN REPLACED BY VOLUNTARY EXPORT RESTRAINT AGREEMENTS OR VERS WHICH REQUIRE THE GOVERNMENTS OF EXPORTING COUNTRIES TO IMPOSE MAXIMUM EXPORT QUOTAS ON THEIR PRODUCERS THE US ACTION FORCED RUSSIA TO REINSTATE QUANTITATIVE REGULATION OF ITS URANIUM PRODUCERS IT WAS BACK TO BUSINESS BY EDICT AFTER A FEW MONTHS OF TRYING TO ESTABLISH A MARKET THE ONLY DIFFERENCES ARE THAT THE NEW PRODUCTION QUOTAS ARE MAXIMUMS RATHER THAN MINIMUMS AND THAT THEY WERE IMPOSED BY THE US RATHER THAN BY THE COMMUNIST PARTY SIMILAR PROTECTION COULD WELL FOLLOW IN ALUMINUM MANGANESE NICKEL POTASH AND OTHER PRIMARY PRODUCTS THE MOST IMMEDIATE CASE IS ALUMINUM WHERE THE US INDUSTRY HAS THREATENED TO FILE AN ANTIDUMPING SUIT AGAINST RUSSIAN EXPORTS IF MULTILATERAL TALKS DON'T RESULT IN AN AGREEMENT BY PRODUCING COUNTRIES TO CUT WORLD OUTPUT SUCH AN AGREEMENT WOULD IN ESSENCE CREATE A GLOBAL CARTEL THAT WOULD CLEARLY VIOLATE US ANTITRUST LAW PRESIDENT CLINTON AND HIS TEAM WILL TRY TO GET THE RUSSIANS TO ACCEPT ANOTHER VER EVEN BEFORE THE ALUMINUM INDUSTRY MAKES GOOD ON ITS THREAT ALUMINUM IS MUCH MORE IMPORTANT TO THE RUSSIANS THAN URANIUM IN THE FIRST NINE MONTHS OF 1993 IT ACCOUNTED FOR ALMOST 30 OF TOTAL RUSSIAN EXPORTS TO THE US FEWER THAN 5000 JOBS COULD BE SAVED IN THE US ALUMINUM INDUSTRY BY USING IMPORT RESTRICTIONS THE CONSUMER COST OF PRESERVING EACH JOB WOULD BE CLOSE TO 500000 A YEAR OUR DOWNSTREAM ALUMINUMUSING INDUSTRIES LIKE AUTOS WOULD LOSE COMPETITIVENESS AS A RESULT OF PAYING MORE FOR THEIR IMPORTS EACH JOB SAVED IN THE ALUMINUM INDUSTRY IS ALMOST CERTAIN TO COST SEVERAL JOBS IN THE DOWNSTREAM INDUSTRIES THERE IS NO WAY TO CALCULATE THE GEOPOLITICAL COSTS OF SABOTAGING RUSSIA'S ATTEMPT TO BUILD A MARKET ECONOMY BUT MIGHT A VER BE PREFERABLE TO THE IMPOSITION OF ANTIDUMPING DUTIES WHICH COULD WELL OCCUR IF THE ALUMINUM INDUSTRY FILES ITS SUIT RUSSIA ISN'T DUMPING IN THE ORIGINAL AND ECONOMICALLY MEANINGFUL SENSE OF SELLING AT A PRICE BELOW WHAT IT CHARGES IN THE DOMESTIC MARKET NOR IS IT SELLING BELOW ITS OWN COSTS OF PRODUCTION THE BASIS FOR AN ALTERNATIVE CALCULATION THAT IS NOW USED FREQUENTLY IN ANTIDUMPING CASES EVEN AFTER ALLOWING FOR CONTINUED ENERGY SUBSIDIES IN RUSSIA AND FOR THE DEPLORABLE STATE OF ITS SAFETY STANDARDS RUSSIA IS A LOWCOST PRODUCER THE ANTIDUMPING LAWS HOWEVER ARE NO LONGER CRAFTED TO PENALIZE TRUE DUMPING AND THEY WERE NEVER DESIGNED TO WEIGH GEOPOLITICAL FACTORS OR THE INTERESTS OF THE DOWNSTREAM INDUSTRIES AGAINST THOSE OF THE INDUSTRY FILING SUIT IT IS PARTICULARLY EASY TO WIN AN ANTIDUMPING CASE WHEN THE FOREIGN PRODUCERS ARE LOCATED IN A NONMARKET ECONOMY AS RUSSIA IS STILL CLASSIFIED SINCE THE CALCULATION OF WHAT THE FOREIGNER OUGHT TO BE CHARGING IN SUCH CASES IS AN ARTIFICIAL ESTIMATE BASED ON COSTS IN SOME THIRD COUNTRY IF SOME FORM OF PROTECTION IS INEVITABLE IT WOULD NEVERTHELESS BE LESS BAD COMING FROM A QUASIJUDICIAL PROCESS LIKE AN ANTIDUMPING ACTION THAN FROM A VER A DISCREDITED POLICY TOOL THAT THE US AND MORE THAN 100 OTHER COUNTRIES HAVE JUST AGREED TO PHASE OUT AS PART OF THE URUGUAY ROUND PACKAGE OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MOREOVER ANTIDUMPING DUTIES WOULDN'T REQUIRE THE RUSSIAN GOVERNMENT TO REIMPOSE QUOTAS ON RUSSIAN ENTERPRISES BUT THE BASIC POLICY ISSUE IS WHETHER THE US REALLY SUPPORTS ECONOMIC REFORM IN RUSSIA IF SO WE SURELY WANT TO PROMOTE TRADE NOT AID THE US ADMINISTRATION SHOULD BOTH REJECT THE VER AND DO ALL IT CAN TO WARD OFF THE ANTIDUMPING SUIT OUR GOVERNMENT HAS RIGHTLY CHASTISED WESTERN EUROPE FOR LIMITING EXPORTS OF AGRICULTURAL PRODUCTS STEEL AND TEXTILES FROM EASTERN EUROPE IT SHOULD ALSO CHASTISE WESTERN EUROPE FOR RESTRICTING ALUMINUM IMPORTS FROM RUSSIA RATHER THAN EMULATE ITS WORST PRACTICES THE ZHIRINOVSKY PHENOMENON IN RUSSIA STRONGLY SUGGESTS THAT WE SHOULD AVOID PROVIDING AN EASY TARGET FOR NATIONALIST AND XENOPHOBIC OUTBURSTS INSTEAD OF RAILING ABOUT IMF IMPOSITION OF AUSTERITY IN RUSSIA WHERE HYPERINFLATION STILL THREATENS AND OPEN UNEMPLOYMENT REMAINS BELOW 2 WE SHOULD AVOID CHOKING OFF EXPORTS OF THE ONLY RUSSIAN PRODUCTS THE WORLD WANTS TO BUY AND PUSHING THAT COUNTRY BACK TOWARD COMMAND ECONOMICS MR BERGSTEN IS THE DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS 9401120039 940112 CANADIAN HOUSING STARTS ARE UP OTTAWA CANADIAN HOUSING STARTS ROSE 05 IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 172100 FROM A NOVEMBER RATE OF 171300 CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID DECEMBER WAS THE FOURTH CONSECUTIVE MONTH TO SHOW A RISE IN HOUSING STARTS 9401120038 940112 BUSINESS BRIEF TARGET THERAPEUTICS INC COMPANY EXPECTS EARNINGS TO EXCEED ANALYST FORECASTS TARGET THERAPEUTICS INC CITING BETTERTHANPREDICTED SALES SAID IT EXPECTS TO REPORT THAT FISCAL THIRDQUARTER EARNINGS EXCEEDED ANALYSTS' ESTIMATES FOR THE QUARTER ENDED DEC 31 THE FREMONT CALIF MEDICALDEVICE MAKER SAID IT EXPECTS TO REPORT NET INCOME OF 20 CENTS TO 23 CENTS A SHARE COMPARED WITH ANALYSTS' PREDICTIONS OF 13 CENTS TO 17 CENTS A SHARE THIRDQUARTER REVENUE WAS ABOUT 93 MILLION TARGET SAID FOR THE YEAREARLIER QUARTER TARGET POSTED NET INCOME OF 897000 OR 13 CENTS A SHARE ON REVENUE OF 73 MILLION TARGET SAID SALES GROWTH IN THE QUARTER WAS STRONG ACROSS ITS PRODUCT LINES AND EXPENSE GROWTH WAS LOWER THAN EXPECTED IT SAID IT PLANS TO REPORT ITS EARNINGS ON OR ABOUT JAN 25 9401120037 940112 PARALLEL PETROLEUM WELL OUTPUT MIDLAND TEXAS PARALLEL PETROLEUM CORP SAID ITS FIRST FUSSELMAN FORMATION DISCOVERY WELL THE HAMLIN 161 TESTED AT A FLOW RATE OF 577 BARRELS OF OIL AND 81000 CUBIC FEET OF NATURAL GAS A DAY ON A 12/64INCH CHOKE THE OIL AND NATURALGAS COMPANY SAID THE WELL WHICH IS IN THE PERMIAN BASIN IN WEST TEXAS IS PRODUCING 165 BARRELS OF OIL A DAY PLUS ASSOCIATED NATURAL GAS OF ABOUT 25000 CUBIC FEET A DAY PARALLEL OWNS AN 80 WORKING INTEREST IN THE WELL PRIVATE INVESTORS AND CLOSELY HELD COMPANIES OWN THE REMAINING 20 9401120036 940112 WHO'S NEWS NEW YORK'S CHIEF TROOPER TO BE NAMED DEA HEAD WASHINGTON PRESIDENT CLINTON PLANS TO NOMINATE NEW YORK STATE POLICE SUPERINTENDENT THOMAS CONSTANTINE TO HEAD THE DRUG ENFORCEMENT ADMINISTRATION MR CONSTANTINE 55 YEARS OLD HAS BEEN WITH THE STATE POLICE FOR MORE THAN THREE DECADES AND WAS APPOINTED SUPERINTENDENT IN 1987 DURING THOSE YEARS HE WORKED WITH NOWFEDERAL BUREAU OF INVESTIGATION DIRECTOR LOUIS FREEH WHO WAS A FEDERAL JUDGE A FEDERAL PROSECUTOR AND AN FBI AGENT IN NEW YORK CITY THE DEA HAS ABOUT 3500 AGENTS IN 53 COUNTRIES IN OCTOBER ATTORNEY GENERAL JANET RENO REJECTED SUGGESTIONS TO MERGE THE DEA AND THE FBI INSTEAD SHE APPOINTED MR FREEH DIRECTOR OF INVESTIGATIVE AGENCY POLICIES IN ADDITION TO HIS FBI DUTIES THE NEW POSITION IS DESIGNED TO RESOLVE AND PREVENT TURF BATTLES AMONG THE FEDERAL LAWENFORCEMENT AGENCIES WHILE MR CONSTANTINE HAS BEEN APPLAUDED FOR HIS SUPERVISION OF THE STATE POLICE HIS TENURE ALSO HAS WITNESSED ONE OF THE MOST SERIOUS SCANDALS IN STATE POLICE HISTORY IN RECENT MONTHS THREE TROOPERS HAVE ADMITTED FALSIFYING FINGERPRINT RECORDS 9401120035 940112 MOODY'S REVIEWS 2 BANKS' DEBT NEW YORK MOODY'S INVESTOR SERVICE INC PLACED UNDER REVIEW FOR POSSIBLE UPGRADE THE DEBT OF TWO VIRGINIA BANKS THAT HAD ASSETQUALITY PROBLEMS MOODY'S IS REVIEWING BAA2 SUBORDINATED DEBT AND A2RATED LONGTERM DEPOSITS OF SIGNET BANKING CORP AND CRESTAR FINANCIAL CORP APPROXIMATELY 250 MILLION IN SIGNET'S DEBT IS AFFECTED WHILE 175 MILLION OF CRESTAR'S DEBT IS AFFECTED THE BANKS BOTH BASED IN RICHMOND WERE ACTIVE IN COMMERCIAL REALESTATE LENDING IN THE WASHINGTON DC AREA WHEN THE MARKET WAS HARD HIT IN 1990 AND 1991 THE BANKS BOTH HAD ASSETQUALITY PROBLEMS SAID DEBORAH KINZER ASSISTANT VICE PRESIDENT AT MOODY'S WE HAVE HAD A POSITIVE VIEW REGARDING BOTH COMPANIES FOR A WHILE SAID MS KINZER WHO ADDED THAT BOTH BANKS' RATINGS WERE UPGRADED IN LATE 1992 AND EARLY 1993 MOODY'S SAID THE BANKS' PRIME2 RATING FOR COMMERCIAL PAPER AND PRIME1 RATINGS FOR SHORTTERM DEPOSITS AREN'T AFFECTED BY THE REVIEW 9401120034 940112 AMERICA WEST TRAFFIC UP PHOENIX AMERICA WEST AIRLINES SAID ITS TRAFFIC IN DECEMBER ROSE 64 TO 9597 MILLION REVENUE PASSENGER MILES FROM 9022 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 642 FROM 606 FOR THE YEAR TRAFFIC FELL 48 TO 112 BILLION REVENUE PASSENGER MILES FROM 118 BILLION A YEAR EARLIER LOAD FACTOR ROSE TO 653 FROM 611 9401120033 940112 BUSINESS BRIEF CORNING INC PREPRODUCTION PLAN GROWS FOR CATALYTIC CONVERTERS CORNING INC SAID IT IS GEARING UP A BROADER PREPRODUCTION PROGRAM FOR ITS ELECTRICALLY HEATED CATALYTIC CONVERTERS FOR THAT PURPOSE THE COMPANY DEDICATED A 10000SQUAREFOOT FACILITY IN AN EXISTING BUILDING IN CORNING NY EXPECTING TO PRODUCE SAMPLES FOR TESTING ON AUTOMOBILE MODELS IN 1994 THOUGH THE COMPANY WOULDN'T DISCLOSE ITS INVESTMENT IN THE PROJECT A SPOKESMAN SAID IT WAS IN THE MILLIONS BUT NOT THE HIGH MILLIONS A FULLPILOT PROGRAM IS EXPECTED TO BEGIN IN SEPTEMBER CORNING EXPECTS DEMAND FOR SUCH FLEET SAMPLES TO RISE IN 1995 AS AUTOMBILE MANUFACTURERS BEGIN USING CONVERTERS IN LARGERSCALE TESTS THE COMPANY ESTIMATES THAT THE US MARKET FOR COLDSTART EMISSIONS CONTROL DEVICES INCLUDING ELECTRICALLY HEATED CATALYTIC CONVERTERS MAY REACH 100 MILLION BY 2000 LOWER EMISSION STANDARDS BEGIN TAKING EFFECT IN THE 1997 MODEL YEAR 9401120032 940112 CONAGRA STAKE IN UNIVASA UNIT OMAHA NEB CONAGRA INC SAID IT AGREED TO ACQUIRE A 20 STAKE IN UNIVASA SA A UNIT OF DESC SOCIEDAD DE FOMENTO INDUSTRIAL SA OF MEXICO CITY TERMS WEREN'T DISCLOSED CONAGRA AN INTERNATIONAL FOOD CONCERN SAID UNIVASA PRODUCES AND MARKETS CHICKEN PORK PRODUCTS AND ANIMAL FEEDS IN MEXICO IT HAS ANNUAL SALES OF MORE THAN 185 MILLION CONAGRA SAID IT HAS AN OPTION TO INCREASE ITS STAKE IN UNIVASA TO JUST UNDER 50 OVER FOUR YEARS CONAGRA SAID THE DEAL IS SUBJECT TO A DEFINITIVE AGREEMENT AND REVIEW BY THE MEXICAN GOVERNMENT 9401120031 940112 FORGOTTEN FAMILIES IGNORED BY PEACE PACT PALESTINIAN REFUGEES IN LEBANON LOSE HOPE CONFINED TO SQUALID CAMPS SINCE WAR OF 1948 THEY HAVE NOWHERE TO GO MY CHILDREN WERE MARTYRED' BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIRUT LEBANON IN THE AFIFI HOME A NOISY CHILDFILLED HAVEN OF WARMTH NESTLED IN THE RUBBLE OF THE SHATILA REFUGEE CAMP THERE IS A NEW FAMILY PASTIME CURSING YASSER ARAFAT FOR MAKING PEACE WITH ISRAEL OPINIONS DIVIDE HOWEVER OVER WHAT TO DO ABOUT IT THE CHOICES ARE FEW NOWHERE IN THE ARAB WORLD HAVE PALESTINIANS ENDURED MORE HORRORS THAN IN THE SQUALID CAMPS OF LEBANON AND NOWHERE NOW DO THE REFUGEES FEEL MORE BETRAYED BY MR ARAFAT'S PLANS FOR PEACE LIKE MOST OF THE 350000 PALESTINIAN REFUGEES IN LEBANON RIMA AND AHMED AFIFI ENDED UP HERE BECAUSE THEIR FAMILIES FLED THE 1948 ARABISRAELI WAR THE COUPLE MET AND MARRIED IN THE UNITED NATIONSRUN SHATILA CAMP THEY RAISED 11 CHILDREN HERE AND ENDURED THE PAST 20 YEARS OF BLOODSHED ALONG THE WAY THE AFIFIS GAVE FOUR OF THEIR OWN TO WHAT REFUGEES CALL THE REVOLUTION ONE SON DIED IN THE ISRAELI INVASION OF 1982 ANOTHER WAS BUTCHERED THAT YEAR BY ISRAELIBACKED MARONITE CHRISTIANS IN THE SABRA AND SHATILA MASSACRE A THIRD FELL FIGHTING THE SYRIANBACKED SHIITE AMAL MILITIA THE FOURTH A DAUGHTER DISAPPEARED LAST YEAR ON A SUICIDE MISSION IN ISRAELIOCCUPIED SOUTH LEBANON MY CHILDREN WERE MARTYRED FOR THE LIBERATION OF PALESTINE YET THE GAZAJERICHO AGREEMENT BRINGS US NOTHING SAYS MR AFIFI FOR HIM PEACE MEANS JUST ONE THING RECLAIMING HIS CHILDHOOD HOME IN NORTHERN ISRAEL YET THAT ISN'T EVEN CONTEMPLATED IN THE GAZAJERICHO AGREEMENT THE REVOLUTION WILL GO ON THE ELDERLY MAN INSISTS BUT WITHOUT HIS CHILDREN WE'VE PAID ENOUGH HIS WIFE DISAGREES THOSE WE LOST WE LOST FOR GOD SHE SAYS KNEELING UNDER THE MARTYR PORTRAITS OF HER DEAD SONS IN COMBAT GEAR THOSE WE STILL HAVE I HOPE WILL FOLLOW THEIR BROTHERS FOR PALESTINE WHETHER OR NOT ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION CAN MAKE THE GAZAJERICHO ACCORD WORK THIS IS ONE GROUP OF PALESTINIANS THAT WON'T SEE ANY BENEFIT AND THAT IN FACT MAY SUFFER THE GROUP STARTED OUT HERE MORE THAN 45 YEARS AGO AS REFUGEES FROM THE 1948 WAR THAT CREATED ISRAEL THE LEBANESE HAVE ONLY RELUCTANTLY SHELTERED THEM LEBANON HAS ALWAYS BEEN THE WORLD'S WORST PLACE TO BE PALESTINIAN THE STATE MINDFUL OF UPSETTING ITS MUSLIMCHRISTIAN BALANCE HAS KEPT THE MOSTLY MUSLIM REFUGEES IN ABJECT POVERTY FEW PALESTINIANS ARE ALLOWED TO WORK TO OWN BUSINESSES OR TO BUY REAL ESTATE OUTSIDE THE CAMPS NOW AFTER YEARS OF STRUGGLE AND OF LIVING IN THE DINGY OVERCROWDED CAMPS LEBANON'S PALESTINIANS FEEL THEY HAVE BEEN SHUNTED ASIDE ONCE AGAIN THEIR PLIGHT IS VIRTUALLY IGNORED BY THE PEACE PACT WHICH FOCUSES ON THE WEST BANK AND GAZA RATHER THAN ON NORTHERN ISRAEL WHERE THE REFUGEES HAIL FROM AND HERE IN LEBANON THE RIVAL FACTIONS OF CHRISTIANS MUSLIMS AND DRUSE ARE IN RARE AGREEMENT ON WHAT HAPPENS TO THE REFUGEES IF THERE IS PEACE THEY GO SETTLING PALESTINIANS IN LEBANON IS OUT OF THE QUESTION SAYS WALID JUMBLATT THE DRUSE LEADER AND GOVERNMENT MINISTER IN CHARGE OF RESETTLING THE 800000 LEBANESE CITIZENS DISPLACED BY WAR WE REFUSE TO SOLVE THE PALESTINIAN PROBLEM AT LEBANON'S EXPENSE AND SO THREE GENERATIONS OF REFUGEES ARE SCRAPING BY HERE ON THEIR WITS ANGER AND 33 MILLION A YEAR OF INTERNATIONAL AID THAT DOESN'T COME CLOSE TO ALLEVIATING THE LACK OF SUCH BASIC SERVICES AS PLUMBING AND ELECTRICITY THOUGH THE REFUGEES BITTERLY OPPOSE THE PEACE PLAN THEY ARGUE OVER WHAT THE ALTERNATIVE SHOULD BE THE DEBATE MAY BE MOOT CONSIDERING HOW FEW REAL OPTIONS THEY HAVE SOME WANT TO JOIN SYRIANBACKED FORCES FIGHTING THE PLAN SOME HOPE SIMPLY FOR MONEY SEVERAL UN RESOLUTIONS SAY ALL PALESTINIAN REFUGEES SHOULD BE COMPENSATED FOR THEIR LOSSES THOUGH A MULTINATIONAL COMMITTEE ON REFUGEES CREATED AT THE MADRID PEACE CONFERENCE HAS YET TO PUBLICIZE A SINGLE CONCRETE PROPOSAL RUMORS ARE SWIRLING IN THE CAMPS A PALESTINIAN PHARMACIST IN THE BURJ ELBARAJNEH CAMP FOR INSTANCE INSISTS THAT WESTERN DIPLOMATS ARE MAKING TRICKS FOR US TO RESETTLE IN CANADA EUROPE AND AUSTRALIA OTHER REFUGEES IMAGINE RICHES COMING TO THEM FROM A COMPENSATION FUND SET ASIDE BY THE US SURMISES ONE SCHOOLTEACHER ARAFAT LOYALISTS FOR THEIR PART HAVE PUT OUT THE WORD COMPLETELY UNSUBSTANTIATED THAT A SECRET DEAL BETWEEN THE PLO AND ISRAEL WILL LET LEBANON'S REFUGEES MOVE TO AUTONOMOUS PALESTINE OR RECEIVE COMPENSATION DURING THE THIRD YEAR OF AUTONOMY YOU CAN'T TELL THESE PEOPLE THEY'RE NOT GOING BACK SAYS MOHAMMED HASAN A PALESTINIAN AND THE UN'S CHIEF OF REFUGEE WORK IN THE BEKAA VALLEY IF YOU SAY THAT YOU'RE WITH THE ENEMY THE MOST COMMON EXPECTATION POSTGAZAJERICHO ISN'T OF PEACE AT ALL BUT OF MORE REVOLUTION AT THE EIN ELHELWEH CAMP ABOVE THE LEBANESE CITY OF SIDON MUNIR MAKDAH DRILLS HIS TROOPS AS HE ALWAYS HAS THE FORMER HEAD OF PLO FORCES IN LEBANON FIRES AN AK47 ASSAULT RIFLE INTO THE TURF AS HE BARKS COMMANDS TO A FEW DOZEN SOLDIERS AGES 12 TO 40 WHO JOG IN FORMATION THEY CARRY WEAPONS OF EVERY SHAPE AND SIZE AUTOMATIC PISTOLS GRENADE LAUNCHERS AND BIGGEST OF ALL MASSIVE M249 SAW MACHINE GUNS TOTED BY MR MAKDAH'S BODYGUARDS UNTIL SEPTEMBER THESE MEN AND BOYS WERE AMONG THE PLO'S MOST HARDENED FIGHTERS THE LAST REMNANTS OF MR ARAFAT'S 20000MAN ARMY THAT THE ISRAELIS ROUTED FROM LEBANON IN 1982 BUT AFTER MR ARAFAT SHOOK HANDS WITH YITZHAK RABIN IN WASHINGTON MR MAKDAH AND HIS MEN MUTINIED NOW THEY ARE CONSIDERING JOINING SYRIANBACKED GROUPS THAT ARE FIGHTING AGAINST THE GAZAJERICHO PLAN FOR 26 YEARS WE THOUGHT ARAFAT WOULD LEAD US TO PALESTINE SAYS MR MAKDAH A REMARKABLY SERENE MAN AS HE RESTS ON THE COUCH OF HIS NEW OFFICE HIS LAST HEADQUARTERS LOCATED OFF DEATH STREET IN EIN ELHELWEH WAS RECENTLY DESTROYED BY AN ISRAELI ATTACK HELICOPTER UNBUTTONING HIS SHIRT TO REVEAL A BULLET SCAR ON HIS CHEST THE 33YEAROLD GUERRILLA TICKS OFF THE ENEMIES HE HAS FOUGHT IN 20 YEARS AS AN ARAFAT LOYALIST ISRAELIS SYRIANS FOUR FACTIONS OF PALESTINIANS LEBANESE CHRISTIANS SHIITES AND DRUSE IT'S LIKE YOUR FATHER WHO BRINGS YOU UP FROM CHILDHOOD HE SAYS OF MR ARAFAT ADDING WITHOUT A TRACE OF IRONY THEN SUDDENLY YOU REALIZE HE'S A KILLER MR ARAFAT LARGELY CUT OFF THE PALESTINIANS IN LEBANON A YEAR AGO WHEN HIS REPRESENTATIVES STARTED SECRETLY MEETING WITH ISRAELI OFFICIALS TO WORK OUT THE GAZAJERICHO AGREEMENT THE PLO CHAIRMAN STOPPED SENDING FUNDS HERE HIS LOYALISTS SAY CAUSING AN UPROAR AMONG THE THOUSANDS OF REFUGEE FAMILIES WHO RELIED ON THE PLO'S HEALTH CLINICS SURVIVORS' BENEFITS AND OTHER SUBSIDIES ARAFAT OPPONENTS SAY HE IS USING PURSE STRINGS TO COMPEL COMPLIANCE WITH HIS DIPLOMACY HIS SUPPORTERS SAY HE ISN'T THAT MACHIAVELLIAN YOU KNOW ARAFAT WHEREVER HE IS HE PAYS LAUGHS SAYID WEHBE A LONGTIME PLO OPERATIVE IN THE BURJ ELBARAJNEH CAMP NOW HE'S PUTTING HIS MONEY INTO GAZA AND JERICHO THOSE AREAS SPARKLE WHEN COMPARED WITH THE DEVASTATION OF LEBANON'S REFUGEE CAMPS MOST OF THE CAMPS WERE BUILT AS TEMPORARY SHELTERS MORE THAN 40 YEARS AGO WHAT AMENITIES THAT ONCE EXISTED WERE DESTROYED IN THE CAMP WARS OF THE 1980S WHEN SYRIANBACKED PALESTINIAN AND SHIITE MILITIAS FIGHTING THE PROARAFAT FORCES IN THE CAMPS LOBBED SHELLS INTO THE CAMPS PLUMBING SEWAGE AND ELECTRICITY WERE DESTROYED THE WARRENS OF CEMENT AND CORRUGATED METAL ARE ALSO DANGEROUSLY OVERCROWDED LEBANESE AUTHORITIES HAVE LONG BARRED THE UN FROM EXPANDING THE CAMPS EITHER BY BUILDING NEW STORIES ON EXISTING BUILDINGS OR BY ACQUIRING NEW LAND IN FACT OVER THE PAST 20 YEARS ISRAELI AND LEBANESE GUNS HAVE DEMOLISHED FOUR REFUGEE CAMPS IN LEBANON WHILE THE REFUGEE POPULATION WITH ITS HIGH BIRTH RATE HAS BEEN GROWING 3 A YEAR NOW SOME 6000 PALESTINIAN FAMILIES REFUGEES FROM REFUGEE CAMPS ARE SQUATTING IN BOMBEDOUT BUILDINGS AROUND BEIRUT SAYS JOHN FENNESY THE UN'S DEPUTY CHIEF OF REFUGEE OPERATIONS IN LEBANON MANY FACE EVICTION WITH NOWHERE LEFT TO GO NEAR THE AFIFIS' HOME ON THE WESTERN EDGE OF THE SHATILA CAMP CHILDREN SCALE 30FOOT MOUNDS OF RUBBLE AS IF THE HEAPS WERE JUNGLE GYMS A FOURYEAROLD BOY FINDS HIS TOY FOR THE DAY A SMASHED RED BUCKET THE DEBRIS IS HOME TO SEVERAL FAMILIES WHO HAVE BURROWED CAVES FOR THEMSELVES WITH THE RATS THOUGH MANY PALESTINIAN REFUGEES LIVED ON THIS SITE BEFORE ITS DESTRUCTION IN THE SHIITE AMAL SIEGE OF THE LATE 1980S THE UN CAN'T TOUCH THE DEBRIS NOW THAT'S BECAUSE THE AREA WHICH TECHNICALLY LIES JUST OUTSIDE THE SHATILA BOUNDARY IS PART OF LEBANESE PRIME MINISTER RAFIK HARIRI'S BLUEPRINT FOR A 100 MILLION SPORTS COMPLEX DUBBED SPORTS CITY IT WILL HELP THE LEBANESE CITIZEN SAID MR HARIRI AS HE LAID THE CORNERSTONE IN SEPTEMBER TO ACHIEVE HIS GOALS OF DIGNITY INSIDE THE WRECKED PALESTINIAN CAMPS THE SYRIANS ARE FIRMLY IN CONTROL AS THEY HAVE BEEN IN MOST OF LEBANON SINCE ENDING THE COUNTRY'S CIVIL WAR IN 1990 BEFORE ENTERING OR LEAVING MOST CAMPS CARS MUST PASS THROUGH TWO CHECKPOINTS ONE SYRIAN AND ONE LEBANESE INSIDE PALESTINIANS FROM DAMASCUS KEEP A TIGHT LID ON THINGS CRAMPING THE USUAL PALESTINIAN DELIGHT IN POLITICAL BANTER IF YOU TELL THE TRUTH WHISPERS ONE FRIGHTENED MAN IN BURJ ELBARAJNEH THEY TAKE YOU OFF TO PRISON IN SYRIA HEZBOLLAH THE IRANIANBACKED SHIITE GROUP IS ALSO ACTIVE IN THE PALESTINIAN CAMPS PROVIDING WATER AND SERVICES IN AN ATTEMPT TO WOO THE PALESTINIANS THEIR POSTERS OF IRANIAN AND LEBANESE AYATOLLAHS AND THEIR HARSH ANTIISRAEL SLOGANS PAPER THE WALLS AND THEIR WATER TANKS EMBLAZONED WITH THE IRANIAN FLAG ARE A CHERISHED ASSET OF MANY RUINED NEIGHBORHOODS WHEN THE PLO STOPPED SENDING MONEY FOR MEDICINES HEZBOLLAH CHIPPED IN SAYS THE PHARMACIST IN BURJ ELBARAJNEH THIS PICTURE OF PALESTINIANS AS POLITICAL PAWNS IS SHARPEST IN THE BEKAA VALLEY THE SWEEPING BASIN OF RICH BROWN SOIL THAT RUNS THE LENGTH OF EASTERN LEBANON FROM THE FOURTH FLOOR OF THE OLD FRENCH ARMY BARRACKS IN BAALBECK CAPITAL OF THE BEKAA PALESTINIANS CAN SEE OPEN LAND ALL THE WAY TO THE HORIZON YET 6300 OF THEM LIVE 10TOAROOM IN THE COLONIAL FORT THEIR FAMILY HOMES SINCE 1948 AROUND BACK TAMAM AND SALEH GHOZLAN ARE STARTING MARRIED LIFE IN THE OLD HORSE STABLES ONE MORNING WHILE HER HUSBAND SEARCHES FOR WORK IN THE CAMP MRS GHOZLAN COOKS RICE ON A SMALL BURNER ON THE FLOOR OUTSIDE IT IS 35 DEGREES IN THE BEKAA PLATEAU ELEVATION 4000 FEET INSIDE THE LEAKY CEMENT STALL IT IS COLDER THIS PLACE WAS BUILT FOR ANIMALS SAYS MRS GHOZLAN 19 YEARS OLD APOLOGIZING FOR THE WET FLOOR OF THE TINY TOILET CUBICLE A FEW DOORS AWAY KIFA ATOUR'S WIFE AND BABY ALREADY HAVE THEIR FIRST COLDS OF THE LONG WINTER THEIR STALL IS A BIT WARMER THOUGH THANKS TO A SMALL KEROSENE HEATER MR ATOUR 21 EARNS 30 A MONTH AS A RESERVE GUERRILLA FOR A PALESTINIAN FACTION CALLED SAIQA CREATED BY SYRIA HIS CONNECTIONS ALSO LANDED HIM PERMISSION TO CONVERT AN OLD WATER TANK NEXT TO HIS HOME INTO A ONECHAIR BARBER SHOP MR ATOUR'S MAIN INTEREST HOWEVER IS WAR HIS HOBBY IS MAKING MODEL FIGHTER JETS FROM SCRAP METAL AND LIVE BULLETS MR ARAFAT HE SAYS IS A TRAITOR WHO HAS LEFT US HERE WITHOUT HOPE ON THE WALL ABOVE HIS BABY'S CRIB MR ATOUR HAS TACKED A LETTER HE WROTE TO HIS DEAD MOTHER ADORNED WITH PHOTOS OF HIMSELF IN COMBAT GEAR OH MOTHER IT SAYS RESCUE ME FROM THIS STRANGE WORLD I LONG TO DIE IN YOUR ARMS BEFORE I DIE FROM MY ENEMY'S BULLETS 9401120030 940112 A BUSINESSMAN'S PROPOSAL BY ELI EPSTEIN MY COMPANY CALCO PRODUCES CALCINED PETROLEUM COKE A CRITICAL RAW MATERIAL USED IN THE MANUFACTURING OF ALUMINUM LIKE MANY AMERICAN COMPANIES IN THE ALUMINUM BUSINESS WE FIND OURSELVES IN A CRISIS OVER THE PAST FOUR YEARS THE COMMONWEALTH OF INDEPENDENT STATES HAS GROWN SO DESPERATE FOR HARD CURRENCY THAT IT HAS QUADRUPLED ITS EXPORTS OF PRIMARY ALUMINUM TO THE WEST DRIVING WORLD PRICES DOWN TO 49 CENTS A POUND IN 1993 FROM 98 CENTS A POUND IN 1989 AT CURRENT PRICES NO WESTERN ALUMINUM SMELTER OPERATING IN A FREEMARKET ENVIRONMENT IS PROFITABLE THERE IS A LOT AT STAKE HERE LESS THAN A MONTH AGO REYNOLDS METALS ANNOUNCED PLANS TO CUT PRODUCTION AND LAY OFF EMPLOYEES THE MOVE FOLLOWED RECENT NEWS FROM ALUMINUM CO OF AMERICA OF PRODUCTION CUTS ALUMINUM IS CLASSIFIED AS A STRATEGIC METAL AND IS VITAL TO US ECONOMIC AND DEFENSE INTERESTS ALUMINUM SMELTING IS A COMPLEX PROCESS AND ONCE THE DOMESTIC INDUSTRY LOSES CAPACITY IT IS UNLIKELY THAT IT WILL BUILD ITSELF UP AGAIN YET PROTECTIONISM IS NOT A GOOD ANSWER RESTRICTING CIS EXPORTS TO THE US WOULD MOVE THE WORLD AWAY FROM FREE TRADE EUROPE HAS ALREADY LIMITED THE ACCESS OF CIS ALUMINUM TO ITS MARKET WITH NO US OR EUROPEAN MARKET TO TAKE ITS EXPORTS THE CIS WILL LOSE A SOURCE OF HARD CURRENCY AND FACE GREATER UNEMPLOYMENT CALCO DOES HAVE A SOLUTION THAT WE BELIEVE WILL SUSTAIN GLOBAL ALUMINUM PRICES AT PROFITABLE LEVELS WITHOUT DAMAGING FREE TRADE THE PLAN REPRESENTS A POLITICALLY PALATABLE WAY FOR THE US TO MEET ITS GOAL OF HELPING THE CIS WE PROPOSE THAT SURPLUS CIS ALUMINUM BE USED AS COLLATERAL FOR AMERICA'S GOVERNMENTGUARANTEED LOANS THIS WOULD REMOVE THE EXCESS SUPPLY FROM THE MARKET AND RETURN PRICES TO PROFITABLE LEVELS AS WELL AS PROVIDE HARD CURRENCY TO THE CIS THE DEAL MIGHT INCLUDE THE STIPULATION THAT A PORTION OF THE FUNDS BE USED FOR UPGRADING CIS SMELTING PLANTS THIS WOULD IMPROVE THE PHYSICAL ENVIRONMENT SURROUNDING CIS SMELTERS WHICH HAVE BEEN DEVASTATED BY YEARS OF NEGLECT THE ESTIMATED MARKET VALUE OF THE ANNUAL SURPLUS OF CIS ALUMINUM EXPORTS IS ABOUT 700 MILLION WHILE LOANS EXTENDED TO THE CIS WOULD SUBSTANTIALLY EXCEED THE VALUE OF THE INVENTORY THE 700 MILLION COLLATERAL WILL REDUCE THE RISK ASSOCIATED WITH THESE LOANS OFFERING THE US TAXPAYER SECURITY AND SUPPORT THE US COMMITMENT TO HELPING THE CIS ECONOMICALLY IN REAL TERMS THIS PLAN WOULD PROVIDE A SENSIBLE ALTERNATIVE FOR CALCO'S CUSTOMERS IN TADZHIKISTAN THEY ARE AT PRESENT UNLOADING THEIR FRESHLY SMELTED ALUMINUM AT BARGAINBASEMENT PRICES ON THE LONDON METAL EXCHANGE THEY HAVE TO DO SO TO RAISE ENOUGH CASH TO IMPORT RAW MATERIALS TO MAKE MORE ALUMINUM THEY ARE CAUGHT IN A VICIOUS CIRCLE UNDER OUR PLAN THE TAJIKS AND ONE HOPES OTHER CIS SMELTERS WOULD BE ABLE TO LEVERAGE THEIR VALUABLE PRODUCT AND SECURE LOANS TO MODERNIZE THEIR PLANTS AND INVEST IN MORE EFFICIENT ENVIRONMENTALLY RESPONSIBLE TECHNOLOGY OUR PLAN WILL OF COURSE HELP CALCO AND OTHERS IN THE INDUSTRY BUT IT WON'T REALLY STAND IN THE WAY OF FREE TRADE PERHAPS BY PROVIDING LOAN GUARANTEES TO THE CIS BACKED BY SURPLUS ALUMINUM THE US CAN NOT ONLY EXTEND VALUABLE ECONOMIC ASSISTANCE BUT RESCUE ONE OF ITS KEY DOMESTIC INDUSTRIES AS WELL MR EPSTEIN IS PRESIDENT AND CEO OF CALCINED COKE CORP SEE RELATED ARTICLE ALUMINUM TESTS CLINTON'S METTLE WSJ JAN 12 1994 9401120029 940112 ACCOUNTANTS ARE CHIDED OVER STOCKOPTION STANCE WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION'S CHIEF ACCOUNTANT CONTENDED THAT ACCOUNTANTS MAY BE LOSING THEIR INDEPENDENCE ON THE ISSUE OF ACCOUNTING FOR EMPLOYEE STOCK OPTIONS WALTER SCHUETZE SAID HE FEARS THAT CPAS MAY HAVE BECOME CHEERLEADERS FOR THEIR CLIENTS MOST OF WHICH OPPOSE A PROPOSAL THAT COMPANIES DEDUCT THE VALUE OF STOCK OPTIONS FROM EARNINGS ACCOUNTING FIRMS ARE AMONG NUMEROUS OPPONENTS TO THE DEDUCTION PROPOSAL WHICH IS BEING CONSIDERED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS WHICH IS OVERSEEN BY THE SEC THE FASB BELIEVES STOCK OPTIONS ARE AN EXPENSE THAT SHOULD REDUCE COMPANIES' PROFITS LAST FEBRUARY THE SIX BIG ACCOUNTING FIRMS EXPRESSED THEIR OBJECTIONS TO THE FASB PROPOSAL SAYING CHANGES IN STOCK PRICES MAKE IT DIFFICULT TO CALCULATE THE VALUE OF STOCK OPTIONS BUT WHEN THE TOPIC WAS FIRST RAISED 10 YEARS AGO MOST MAJOR ACCOUNTING FIRMS SUPPORTED CHARGING STOCK OPTIONS TO EARNINGS MR SCHUETZE SAID IN A SPEECH YESTERDAY TO THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PHILIP CHENOK PRESIDENT OF THE CPA GROUP SAID HE FOUND IT OFFENSIVE AND INAPPROPRIATE FOR THE CHIEF ACCOUNTANT OF THE SEC TO SUGGEST A LOSS OF INDEPENDENCE OVER THE STOCKOPTION MATTER 9401120027 940103 REVIEW & OUTLOOK EDITORIAL A THERAPEUTIC STATE AS THE NEW YEAR HERALDS THE STRETCH DRIVE FOR THE CLINTONS' NATIONALIZED MEDICINE SCHEME IT IS CLEAR THAT THE POLITICAL AND BUDGETARY GROUND HAS SHIFTED BENEATH THEM NOWHERE HAS THAT BEEN MORE TRUE THAN IN MENTAL HEALTH AND ADDICTION COVERAGE THERE THE ADMINISTRATION ITSELF HAS BEATEN A RETREAT CUTTING BACK MAXIMUMS AND INCREASING OUTOFPOCKET COSTS AT LEAST UNTIL THE YEAR 2001 OR SO DESPITE THE ALLTOOREAL PROBLEMS OF MENTAL ILLNESS ONE IS TEMPTED TO APPLAUD THIS DAWNING OF RESTRAINT YET MERELY DICKERING OVER PRICE COULD DIVERT ATTENTION FROM A FUNDAMENTAL ISSUE THE QUESTION OF WHEN DISPIRITEDNESS BECOMES DEPRESSION ANXIETY BECOMES NEUROSIS OR MISBEHAVIOR BECOMES A DISORDER IS THE US DESTINED TO BE A THERAPEUTIC STATE IN WHICH ALL DEFICIENCIES OF BODY AND MIND ARE THE PROPER CONCERN OF WASHINGTON AND ITS 50 STATE ADJUNCTS TO DATE MEDICAL ATTENTION HAS BEEN FINANCED PUBLICLY FOR THE POOREST AND OLDEST AND SICKEST AMONG US AN INCREASINGLY LOOSE AND UNAFFORDABLE DISTINCTION GRANTED BUT AT LEAST AN ATTEMPT TO DRAW SOME LINES THE CLINTONS' PROPOSAL IS ALL ABOUT ERASING LINES AND NOWHERE IS THIS MORE PORTENTOUS THAN IN MENTAL HEALTH AND SUBSTANCEABUSE TREATMENT TO GRASP THIS JUST LISTEN TO TIPPER GORE THE INSIDE CRUSADER FOR MORE GENEROUS COVERAGE IN THIS AREA THE VICE PRESIDENT'S WIFE HAS ARGUED THAT IN ANY GIVEN YEAR 28 OF ALL AMERICANS SUFFER FROM MENTAL PROBLEMS INCLUDING DRUG AND ALCOHOL ADDICTIONS AT A CLEVELAND FORUM SHE REFERRED TO 50 MILLION MENTALLY ILL INCLUDING 14 MILLION CHILDREN BEING CONSIGNED TO A CARE GHETTO OR RECEIVING NO HELP AT ALL IN THE US THESE ARE STAGGERING NUMBERS AS MRS GORE ACKNOWLEDGED THEY INCLUDE AFFLICTIONS RANGING FROM SEVERE SCHIZOPHRENIA TO MORE MILD BOUTS OF DEPRESSION THE MOST COMMON CONDITION AMONG THOSE INCLUDED IN THIS GROUP IS ANXIETY DISORDER THAT OUGHT TO GIVE US PAUSE WHO DOES NOT SUFFER FROM ANXIETIES WHEN DO THEY BECOME A CLINICAL DISORDER DESPITE THE WORK OF PSYCHIATRISTS TO DEFINE THE ILLNESSES THEY TREAT THE HISTORY OF GOVERNMENT ENTITLEMENTS SUGGESTS THERE WILL BE NO DEFINABLE LIMIT TO SUCH COMPLAINT THE NUMBER OF SUFFERERS IS LIKELY TO EXPAND OR CONTRACT BASED ON THE TENDERNESS OF THE HELPING HAND AVAILABLE AND THE HOURLY RATE IT CHARGES HOW MIGHT WE KNOW THIS CONSIDER THE EXPERIENCE OF MANY RESIDENTIAL COLLEGE CAMPUSES WHOSE STUDENT HEALTH PROGRAMS FUNCTION AS LABORATORIES OF THE CLINTON MODEL AT LEAST 10 OF THESE COLLEGE STUDENTS RECEIVE PSYCHOLOGICAL HELP AND THE NUMBER MAY BE DOUBLE THAT AT SOME CAMPUSES ACCORDING TO ROBERT GALLAGHER DIRECTOR OF THE UNIVERSITY OF PITTSBURGH'S COUNSELING CENTER AND KNOWLEDGEABLE ABOUT THE SITUATION NATIONWIDE THE EFFECTIVE LIMIT IS THE BUDGET FOR PROFESSIONALS HANDLING THE LOAD IF YOU DOUBLED THE STAFF YOU COULD PROBABLY DOUBLE THE NUMBER COMING IN HE SAYS AS IT IS DESPITE TIGHTENED BELTS IN ACADEMIA THERE'S BEEN A GRADUAL INCREASE IN PATIENT DEMAND HE REPORTS AND THE NUMBER OF SESSIONS PER COUNSELED STUDENT IS INCREASING A FURTHER NOTE ON THIS FRONT IS A REPORT THIS FALL IN LEAR'S MAGAZINE ANECDOTAL AND RATHER DRAMATIZED OF THE COLLEGE HEALTH CENTER BECOMING A PRIME DISPENSARY OF PROZAC AND OTHER ANTIDEPRESSANT DRUGS THE SUBJECT OF A BESTSELLING BOOK PROZAC HAS BECOME A KIND OF METAPHOR FOR THE THERAPEUTIC STATE WITHOUT DOUBT THIS KIND OF DRUG HAS HELPED MANY IN GENUINE NEED OF THEIR RESTORATIVE POWERS YET AS PROZAC'S SALES ZOOMED TO MORE THAN 1 BILLION WITHIN FIVE YEARS OF INTRODUCTION IT SEEMINGLY APPEALED TO LARGE NUMBERS OF AMERICANS WHO ARE SIMPLY DISSATISFIED WITH THEIR PERSONALITIES AND DESIRE A SURER TICKET TO HAPPINESS AND SOCIAL SUCCESS HOW MANY OF THESE PEOPLE ARE AMONG THOSE LUMPED UNDER ANXIETY DISORDER IS HARD TO KNOW THOUGH PRESUMABLY THEY HAVE GRADUATED BEYOND ROUTINE THERAPY TO AN MD IDEALLY A PSYCHIATRIST TO GAIN THEIR PRESCRIPTIONS WHAT THE CLINTON PLAN WITH ITS EXPANDED PSYCHOPHARMACOLOGICAL BENEFITS WOULD ADD TO THE PROZAC CRAZE IS HARD TO FATHOM IN A MORE SPECIALIZED VEIN THE STATE OF WISCONSIN AND PERHAPS OTHERS HAS SEEN A RISE IN YOUNGSTERS CLASSIFIED AS HAVING OPPOSITIONAL DEFIANT DISORDER UNDER THE SSI ARM OF SOCIAL SECURITY THIS TEMPERAMENT FLAW WHICH SOUNDS SUSPICIOUSLY AS IF IT COULD ENCOMPASS WHAT ONCE EARNED THE LABEL BRAT ENTITLES A PARENT TO INCREASED STATE SUPPORT WITHIN THE FIELD OF TREATMENT FOR ALCOHOL AND DRUG ADDICTIONS GREAT SHIFTS ARE OCCURRING AS COMPANIES AND THEIR INSURERS PULL BACK FROM THE RUNAWAY COSTS THAT THESE ENDEAVORS PILED UP IN THE 1980S SO TOO ARE THE CLINTONITES BEING SCARED OFF FOR NOW BUT THE BASIC FRIGHT SEEMS TO BE ABOUT HOW LONG THESE PATIENTS RESIDE IN A FACILITY AND NOT WHO ALL THEY CONSIST OF AS SUBSTANCE ABUSE HAS EMERGED AS A DISABILITY UNDER THE LAW WHAT WAS A TAINT CAN TURN INTO A TOTEM FOR THOSE WHO WANT TO GAME THE SYSTEM AN ADDICT IS AN ADDICT IT MIGHT BE SAID BUT DO WE REALLY KNOW SOME PUT THE NUMBER OF ALCOHOLICS IN THE US AS HIGH AS 30 MILLION AND WHAT ABOUT ALL THE ENABLERS AND CODEPENDENTS SHOULD THEY RECEIVE TAXPAID TREATMENT TOO AND WHAT ADDICTIONS SHALL WE STOP AT TOBACCO SEX WHO KNOWS WHAT PSYCHOLOGICAL ODYSSEY LIES BEYOND IRA MAGAZINER'S 2001 ACTUALLY IN MENTAL HEALTH THE ANSWER MAY COME DOWN TO THE PHRASE FUNCTIONAL IMPAIRMENT WHICH IS TO BE THE THRESHOLD USED BY THE 50 STATE MEDICAL DIRECTORATES IN DECIDING EACH ACCORDING TO ITS OWN LIGHTS WHOSE BILLS TO PAY AMERICA IS ENGULFED BY A WAVE OF DISORDERSEEKING AND BLAMESHIFTING IT IS SOMEBODY ELSE'S OR SOME OTHER THING'S FAULT WHEN INDIVIDUALS ARE MESSED UP AND THE DIAGNOSES ARE ADAPTIVE TO THE CIRCUMSTANCES THE NATIONAL INSTITUTE OF MENTAL HEALTH REPORTED THAT BY 1990 69 BILLION WAS BEING SPENT IN THE US IN THIS AREA MRS GORE MAINTAINS THAT THE PROBLEM INCLUDING SUBSTANCE ABUSE IS COSTING THE ECONOMY 270 BILLION A YEAR WHICH THEN PROBABLY BECOMES THE CEILING PRICE FOR DEALING WITH IT BUT COST IS NOT THE ONLY GREAT RISK IN THE EXTENSIVE AMBITIONS OF THE THERAPEUTIC STATE ANOTHER IS THE LIKELIHOOD THAT AS NEARLY EVERYBODY IS HELPED FEWER OF THOSE WHO UNDENIABLY OUGHT TO HAVE IT WILL GET IT OR ENOUGH OF IT THE DISPUTE OVER PAYING FOR ANYTHING MORE THAN SHORTBURST DETOX FOR ADDICTS IS PART OF THIS CONCERN MAYBE FOR THE WORST OF WRETCHES ON OUR NATION'S STREETS A LONGER CONFINEMENT SOMEWHERE IS THE ONLY ANSWER THE LAME TRUTH IS THAT WHILE THE US REMAINS ON A TEAR TO INSURE EVERYONE FOR EVERYTHING FROM HANGNAILS TO HEARTACHES ITS PUBLIC SPACES AND PRISONS TEEM WITH LOST SOULS WHO IN MANY CASES COULD BE HELPED WITH DRUGS AND THERAPIES THAT MEDICINE HAS DEVELOPED IN THAT RESPECT MRS GORE AND HER LOBBY WHICH INCLUDES ROSALYNN CARTER AND REPUBLICANS SUCH AS ALAN SIMPSON AND PETE DOMENICI ARE SO RIGHT INTELLIGENT AND CARING APPLICATION OF MENTALHEALTH RESOURCES HAS THE POTENTIAL TO CURB ALL KINDS OF ANTISOCIAL BEHAVIOR BUT WE HAVE TO WONDER IN HOW MANY OF THOSE AWFUL INSTANCES WAS THE ABSENCE OF A TREATMENT FACILITY THE DIFFERENCE AS OPPOSED TO THE SOCIETAL WILL TO SEE THAT ITS WAYWARD ELEMENTS GO AND STAY WHERE THEY MIGHT GET ATTENTION FROM THAT CORE PATHOLOGICAL CONSTITUENCY IT IS A SERIES OF DISTINGUISHABLE STEPS UP THROUGH THE UNDERCLASS TO THE DYSFUNCTIONAL FALLOUTS FROM THE MIDDLE CLASS AND FINALLY TO THOSE STILL AFFLUENT BUT ALIENATED FROM THE WORLD AROUND THEM AT EACH OF THESE LEVELS THERE SURELY EXIST THE CLINICALLY ILL BUT THERE IS OTHER BETTER ATTENTION WE CAN GIVE THEM FIRST THAT OTHER IS A STABILIZED SOCIAL ORDER THAT HELPS THE DISTRACTED TO MAINTAIN SOME PURPOSE IN THEIR LIVES THAT PREVENTS THEM FROM CRASHING OFF THE ROADWAY IN THE FIRST PLACE IT STARTS WITH HAVING A PARENT TEND TO A CHILD WITH HAVING A FATHER STAY WITH A MOTHER WITH HAVING THE TELEVISION AND THE CDS TURNED OFF LONG ENOUGH TO RELATE ONCE A DAY AND WITH HAVING THE WHOLE BUNCH TRUNDLE OFF TO CHURCH OR SOME SUCH PLACE WHERE THEY MIGHT REGULARLY REFLECT ON LOVE AND OTHER VALUES THAT USED TO HOLD FAMILIES AND INDIVIDUALS TOGETHER IN STRESSFUL TIMES IF WE HAD TO ISOLATE ONE SET OF SHORTCOMINGS THAT HAVE LED AMERICANS TO WHERE THEY ARE TODAY WITH TIPPER GORE ESTIMATING THAT MORE THAN A QUARTER OF US ARE IN NEED OF SPECIAL HELP IT WOULD BE THOSE ADDRESSED IN THAT PRESCRIPTION WE SUSPECT MRS GORE WOULDN'T DISAGREE WITH OUR ANALYSIS AS FAR AS IT GOES BUT WOULD HOLD OUT NEVERTHELESS FOR A VAST NEW TAXPAYERSUPPORTED ENTITLEMENT TO DEAL WITH MATTERS SHE THINKS HAVE GOTTEN BEYOND HEARTH AND HOME THAT BRINGS US TO THE FUNDAMENTAL DIVIDE IN US POLITICS WHICH IS WHERE IN ADDITION TO THE PURE ECONOMIC CONSIDERATIONS OF THE CLINTONS' MEDICINE SHOW THE LEGISLATIVE BATTLE OF THE NEXT YEAR NEEDS TO BE FOUGHT OUT WE APPARENTLY WERE HEALTHIER AS A PEOPLE PSYCHOLOGICALLY AND IN MANY CASES PHYSICALLY WHEN WE SPENT LESS TRYING TO LET EVERYONE FEEL JUST RIGHT THAT IS A PARADOX THAT THOSE WHO DEMAND THAT WE SPEND SO VERY MUCH MORE MUST FIRST EXPLAIN OTHERWISE THE WILD FISCAL CURRENTS WILL LEAVE THEM EVENTUALLY WITH NOTHING TO STAND ON SEE RELATED LETTER LETTERS TO THE EDITOR THE HIGH SOCIAL COST OF MENTAL ILLNESS WSJ JAN 12 1994 9401030009 YY94 MM01 9401120026 940112 REVIEW & OUTLOOK EDITORIAL HITTING THE CARPOOL BRAKES THIS WEEK THE SMOG REGULATORS IN THE LOS ANGELES BASIN PRECURSORS TO WHAT MUCH OF THE NATION FACES UNDER THE NEW CLEAN AIR ACT MAY TAKE A STEP BACK FROM AN ECONOMIC CHASM THEIR STORY MAY BE INSTRUCTIVE TO OTHER REGIONS NEARING DEADLINES FROM THE FEDS FOR COMPLIANCE WITH THIS HUGE AND SWEEPING LAW THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT AQMD IS LIKELY TO SUSPEND AN EDICT THAT NEARLY 6000 EMPLOYERS OF MORE THAN 100 PERSONS REGULARLY SUBMIT AN EMPLOYEE TRIP REDUCTION PLAN EFFECTIVE FOR FIVE YEARS THIS REQUIREMENT HAS RESULTED IN MORE THAN 3 MILLION IN FINES AND OTHER PENALTIES AND FEES AND IS OUR MOST HATED RULE DISTRICT CHAIRMAN HENRY WEDAA TOLD THE LOS ANGELES BUSINESS JOURNAL HE WANTS TO APPROACH THE PROBLEM ANEW WITHIN SIX MONTHS WITH RIDESHARING SCHEMES NOW THE COMPLIANCE REMEDY OF CHOICE AMONG OFFICIALS ACROSS THE COUNTRY THIS OUGHT TO SOUND A WARNING ON TOP OF ALL THE OTHER CONCERNS IN MEETING A PAYROLL COORDINATING HOW EMPLOYEES GET TO WORK IS A BIT MUCH THE AQMD HAS IMPOSED MANAGERIAL COST ON TOP OF THE FINES AND THE LOGISTICAL NUISANCE OF CHOICE PARKING SPACES THAT NOW SIT EMPTY DESIGNATED FOR CARPOOL VEHICLES AT MANY SOUTHERN CALIFORNIA WORKPLACES YET EVEN AS THE AQMD CONSIDERS A PAUSE OTHER JURISDICTIONS GO INTO OVERDRIVE TO ATTACK MOBILE SOURCES OF URBAN AIR POLLUTION IN THIS ROUNDABOUT WAY TRIP REDUCTIONS ARE MANDATED UNDER THE CLEAN AIR ACT IN NINE REGIONS THIS YEAR AND STRONGLY INDICATED IN MANY OTHERS BY 1996 CARPOOLING ARRANGED BY THE BOSS IS LOCAL OFFICIALS' MOST FAVORED DEVICE FOR COMPLYING WITH THIS RULE BECAUSE IT MASKS THE COSTS WHICH AMOUNT TO ABOUT 25000 FOR THE SMALLER EMPLOYERS COVERED AND 2 MILLION FOR A HUGE UTILITY COMPANY MORE OVERT METHODS SUCH AS CHARGING FOR PARKING PLACES PROMISE TO ELICIT EVEN MORE PROTESTS MEANWHILE THE MOST EFFECTIVE MEASURES FOR ATTACKING AUTO POLLUTIONPEAKHOUR OR PEAKSMOG SEASON PRICING OF HIGHWAYS TO REDUCE CONGESTION AND ROADSIDE EXHAUST SENSORS DESIGNED TO NAB THE 20 OF CARS THAT MOST FOUL THE ENVIRONMENT CONTINUE TO BE GIVEN SHORT SHRIFT GRANTED THEY WOULD DRAW HOWLS AS WELL BUT AT LEAST THEY COULD YIELD SIGNIFICANTLY CLEANER AIR WHICH IS MORE THAN CAN BE SAID FOR COMMUTERCOORDINATION DRIVES OR VARIOUS OTHER INTRUSIVE MEASURES UNIVERSAL INSPECTIONS ALTERNATIVE VEHICLES AND FUELS COMING DOWN THE CLEAN AIR PIKE CALIFORNIA HAS SHOULDERED THE HEAVIEST WEIGHT FROM SMOG REGULATIONS NOT ONLY BECAUSE IT'S HAD THE NATION'S DIRTIEST AIR BUT BECAUSE IT ESTABLISHED ITS OWN STRICT CONTROL MECHANISMS LONG BEFORE WASHINGTON BORE DOWN THE BACKLASH NOW BEING FELT THERE MAY BE A TASTE OF THE REACTION TO COME NATIONALLY AS WASHINGTON TRIES TO IMPOSE THIS LAW ALTHOUGH THE AQMD HAS LATELY BEEN MORE ACCOMMODATING TO BUSINESS IN GENERAL AS ITS OFFICIALS GREW CONSCIOUS OF THE RECESSION THEY AGGRAVATED IN THE LOS ANGELES AREA THERE IS REASON TO SUSPECT A PARTICULAR POLITICAL RETREAT IN THE CASE OF RIDE SHARING MR WEDAA IS PERFORMING A QUICKCHANGE ACT HE WAS PUT ON THE AGENCY'S BOARD BY HIS FELLOW CITY COUNCILMEN IN ORANGE COUNTY AND THE STATE LEGISLATURE IN A REBUKE TO THE AQMD LAST YEAR MADE IT EASIER FOR HIM TO BE REMOVED IN FACT HE IS BEING CHALLENGED IN A VOTE TOMORROW ON THE EVE OF HAVING RIDESHARING RELIEF CONSIDERED AT LEAST THIS SHOWS THAT THE AQMD BOARD THOUGH NOT DIRECTLY ELECTED IS RESPONSIVE TO ELECTORAL PRESSURES LAWMAKERS ELSEWHERE SHOULD SIMILARLY JERK THE LEASH ON SOME OF THEIR SMOG POOBAHS BUT THE ULTIMATE ANSWER HAS TO COME FROM THE NATION'S VOTERS WHO MUST INSIST ON CHANGES TO PUT SOME COSTANDBENEFIT BALANCE IN THE CLEAN AIR ACT THE LAST TIME CONGRESS VISITED THIS SUBJECT AN OVERWHELMING MAJORITY CAST A CHEAP VOTE FOR CLEAR SKIES THAT IS NOW PRODUCING SOME VERY EXPENSIVE CONSEQUENCES 9401120025 940112 MARKETING & MEDIA WANT INTEREST BACK ON YOUR CREDIT CARD AFTER 20 YEARS' USE MELLON BANK TEMPTS SPENDERS WITH NEW CARD PURCHASES MUST BE MADE ONCE A YEAR BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MELLON BANK CORP IS OFFERING A NEW CREDIT CARD THAT PROMISES TO REFUND ALL INTEREST PAID OVER 20 YEARS THE LATEST LURE IN A FIERCELY COMPETITIVE BATTLE TO WIN OVER CREDIT CARD USERS SUCH A REBATE WOULD AMOUNT TO 8667 FOR THE AVERAGE MASTERCARD HOLDER WHOSE MONTHLY CREDIT CARD BALANCE IS 2421 MELLON SAID THE BANK SAYS 66 OF CREDIT CARD HOLDERS REGULARLY CARRY BALANCES FROM ONE MONTH TO THE NEXT MELLON'S NEW NOFEE CORNERSTONE MASTERCARD WHICH CHARGES ANNUAL INTEREST RATES OF 149 AND 179 FOR PREMIUM AND STANDARD CARDS RESPECTIVELY OFFERS TO RETURN 100 OF ALL INTEREST PAID ON THE CARD AFTER 20 YEARS AS LONG AS THE CARD IS USED AT LEAST ONCE A YEAR IF THE CARD HOLDER CHOOSES TO REDEEM THE INTEREST BEFORE TWO DECADES THE REFUND IS PRORATED 10 AFTER TWO YEARS 15 AFTER THREE YEARS 20 AFTER FOUR YEARS AND FIVE PERCENTAGE POINTS MORE EACH YEAR THROUGH THE TWENTIETH YEAR ANALYSTS BELIEVE THE CARD WILL BE VERY POPULAR MELLON'S GOING TO GET A QUICK HIT IN GATHERING ACCOUNTS AND BUILDING BALANCES AT A HIGH RATE OF INTEREST SAYS JAMES DALY EDITOR OF THE CREDIT CARD NEWS TRADE JOURNAL BUT MELLON'S PROFITABILITY WILL DEPEND ON HOW QUICKLY AND TO WHAT EXTENT CONSUMERS CASH IN REBATES MELLON MAKES MONEY BECAUSE IT NEEDS TO INVEST ONLY A PORTION OF THE INTEREST PAYMENTS TO COVER THE LIABILITY AT THE END OF THE 20 YEARS AND SOME CARD HOLDERS WILL LIKELY ELECT PARTIAL REFUNDS RATHER THAN LETTING THE REFUND ACCRUE FOR 20 YEARS CONSUMERS ARE GOING TO LOVE IT SAYS GERRI DETWEILER EXECUTIVE DIRECTOR OF THE BANKCARD HOLDERS OF AMERICA A CONSUMER EDUCATION ADVOCACY GROUP IF THEY HOLD ON TO THE DISCOVER CARD BECAUSE IT GIVES A FEW PENNIES BACK AT THE END OF THE YEAR THEY'LL DEFINITELY HOLD ON TO THIS IF THEY THINK THEY'RE GOING TO GET ALL THEIR INTEREST BACK DISCOVER REBATES 025 OF PURCHASES BACK ON THE FIRST 1000 OF PURCHASES 050 FOR THE SECOND 1000 075 FOR 3000 AND 1 FOR ABOVE 3000 HOWEVER MS DETWEILER CAUTIONS THAT CONSUMERS ARE BETTER ADVISED TO GET A CARD WITH A LOW INTEREST RATE OR PAY OFF THEIR ENTIRE BALANCE EACH MONTH THE IMPORTANT THING IS THAT EVERY PENNY OF INTEREST THAT YOU PAY NOW IS MONEY THAT YOU COULD HAVE BEEN PUTTING TO WORK FOR YOURSELF BY INVESTING OR SAVING IT GETTING THE INTEREST BACK IN 20 YEARS IS NOT THE SAME AS GETTING IT UP FRONT AND DOING WHAT YOU WANT WITH IT SHE SAYS 9401120024 940112 A RARE PLANET ALIGNMENT BODES A BUST FOR BOOMING STOCK MARKET BY VITO RACANELLI SPECIAL TO THE WALL STREET JOURNAL SOME MARKET FORECASTERS ARE LOOKING TO THE STARS AND PREDICTING NOT MORE OF THE BIG BANG OF RECENT DAYS BUT A BIG BUST FINANCIAL ASTROLOGERS AS THEY'RE CALLED SAY THE STOCK MARKET WILL PEAK MIDMONTH TO BE FOLLOWED SOON BY A CRASH OR AT LEAST A SHARP CORRECTION IN EQUITY PRICES A RARE ALIGNMENT OF THE PLANETS FROM YESTERDAY TO TOMORROW WILL CREATE INSTABILITY IN POLITICS THE MARKETS AND THE ECONOMY SAYS PAUL B FARRELL WHO EDITS THE MONEY ASTROLOGY FORECASTS & STRATEGIES NEWSLETTER THIS PERIOD MARKS THE TIGHTEST CONCENTRATION OF SEVEN KEY PLANETS SINCE THE APPLE HIT NEWTON'S HEAD 300 YEARS AGO FARRELL WROTE IN A RECENT ISSUE FOR COMPARISON WHEN THE MARKET HIT ITS AUGUST 1987 HIGH BEFORE CRASHING THE FOLLOWING OCTOBER ONLY FIVE PLANETS WERE CLOSELY ALIGNED MR FARRELL A FORMER MARINE CONCEDES THAT ASTROLOGICAL PREDICTIONS AREN'T EXACTLY PINPOINT BOMBING ALL HE CAN BE CERTAIN OF IS THAT WE ARE GOING TO GO OVER THE CLIFF SOMETIME AFTER THE ALIGNMENT ARCH CRAWFORD WHO PUBLISHES THE CRAWFORD PERSPECTIVES NEWSLETTER AND PREDICTED THE 1987 CRASH BASED ON TECHNICAL INDICATORS AND THE FIVEPLANET ALIGNMENT PROJECTS THAT BECAUSE OF THE SEVENPLANET CONSORTIUM THE DOW JONES INDUSTRIAL AVERAGE WILL FALL ANYWHERE FROM 700 POINTS TO 1200 POINTS BY LATE MARCH THE ANCIENT MAYANS HE ADDS KNOWN FOR THEIR ASTRONOMICAL SAVVY FLED FROM PLANETS SO TIGHTLY ALIGNED ASTROLOGIST HENRY WEINGARTEN SAYS HE CAREFULLY CHARTED SATURN'S DIALOGUE WITH PLUTO ON JAN 1 KNOWN IN ASTROLOGICAL CIRCLES AS SATURN SQUARING PLUTO WITH SATURN REPRESENTING STREAMLINING AND PLUTO CONNOTING RESTRUCTURING THAT PLANETARY COLLUSION COULD BESPEAK A NEGATIVE REALITY HE SAYS SATURN AND PLUTO THE SEVENPLANET SUMMIT AND LAST NIGHT'S NEW MOON POINT TO A NEW AND NEGATIVE PHASE IN THE STOCK MARKET WITH A CRASH BY FEB 10 HE PREDICTS MR WEINGARTEN SAYS A NUMBER OF ASTROLOGERS WHO WON'T BE NAMED BUT WORK DAYS AS MUTUAL FUND MANAGERS ARE PREPARING TO SELL THEIR STOCKS BEFORE THE BIG CRASH BOTH MR FARRELL AND MR WEINGARTEN CONCEDE THAT ASTROLOGICAL INDICATORS ARE NOT ALWAYS ACCURATE MR WEINGARTEN FOR EXAMPLE PREDICTED GEORGE BUSH WOULD WIN THE 1992 US PRESIDENTIAL ELECTION 9401120023 940112 TECHNOLOGY & ENVIRONMENT CLINTON IS URGED BY SENATORS TO ALTER SUPERFUND PLAN BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOUR SENATORS LIKELY TO PLAY A KEY ROLE IN REWRITING THE SUPERFUND LAW URGED PRESIDENT CLINTON TO ALTER THE WHITE HOUSE'S ALLBUTCOMPLETE PROPOSAL FOR CLEANING UP ABANDONED HAZARDOUSWASTE SITES IN A LETTER TO THE PRESIDENT SENS MAX BAUCUS D MONT FRANK LAUTENBERG D NJ DAVID DURENBERGER R MINN AND JOHN CHAFFEE R RI ARGUED FOR TOUGHER CLEANUP REQUIREMENTS THAN CONTEMPLATED IN AN INTERAGENCY PLAN CURRENTLY AWAITING THE PRESIDENT'S APPROVAL SEN BAUCUS IS CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE SEN LAUTENBERG IS CHAIRMAN OF THE PANEL'S SUPERFUND SUBCOMMITTEE SENS CHAFFEE AND DURENBERGER ARE THE RANKING REPUBLICANS ON THE TWO PANELS THE LAWMAKERS IN THEIR LETTER DIDN'T DISCUSS SUBSTANTIVE DETAILS OF THE SUPERFUND PROPOSAL NOR DID SENATE ENVIRONMENT COMMITTEE STAFFERS WHEN THEY MET YESTERDAY ON CAPITOL HILL WITH OFFICIALS FROM THE WHITE HOUSE AND THE ENVIRONMENTAL PROTECTION AGENCY BUT BOTH THE SENATORS AND THE CONGRESSIONAL AIDES URGED THE ADMINISTRATION TO INCORPORATE INTO ITS SUPERFUND PROPOSAL THE RECOMMENDATIONS OF A PRIVATESECTOR PANEL OF INDUSTRY REPRESENTATIVES AND ENVIRONMENTALISTS THOSE RECOMMENDATIONS ISSUED UNDER THE AUSPICES OF THE WASHINGTONBASED NONPROFIT KEYSTONE CENTER AND THE VERMONT LAW SCHOOL HAVE BEEN HEAVILY TOUTED BY ENVIRONMENTALISTS BECAUSE THEY CALL FOR CLEANUP STANDARDS THAT ARE MORE RIGOROUS THAN THOSE EMBODIED IN THE ADMINISTRATION'S SUPERFUND PROPOSAL VICE PRESIDENT GORE WHO RECENTLY REVIEWED THE INTERAGENCY SUPERFUND PROPOSAL HAS ALSO DIRECTED THE WHITE HOUSE STAFF AND THE EPA TO INCORPORATE MORE OF THE KEYSTONE CENTER'S IDEAS INTO THE PLAN ACCORDING TO AN ADMINISTRATION OFFICIAL MR GORE SAID HE WAS PARTICULARLY DISPLEASED THAT THE ADMINISTRATION PLAN INCLUDED COST AMONG THE FACTORS ON WHICH A NATIONAL CLEANUP STANDARD FOR SUPERFUND SITES WOULD BE BASED MR GORE THE OFFICIAL SAID FAVORS INCORPORATING COST AS A CONSIDERATION ONLY IN DETERMINING HOW TO CLEAN UP INDIVIDUAL SITES KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY DENIED THAT MR GORE HAS FOCUSED ON ANY ONE ASPECT OF THE PLAN SHE SAID THE ADMINISTRATION HOPES TO SEND ITS SUPERFUND PROPOSAL TO CONGRESS WITHIN TWO WEEKS 9401120022 940112 TEXAS JOURNAL VISTA PROPERTIES SEEKS AN EXPANDED VIEW BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THE FIRST ANNUAL MEETING OF VISTA PROPERTIES INC HERE TODAY ISN'T LIKELY TO BE A FESTIVE AFFAIR THE COMPANY IS LOSING MONEY ITS STOCK IS TRADING FOR WELL UNDER 1 A SHARE AND IT HAS A MOUNTAIN OF DEBT STILL VISTA OFFICERS SAY THERE IS REASON FOR HOPE THE FATE OF THE DALLAS COMPANY RESTS ON THE OUTCOME OF NEGOTIATIONS WITH HOLDERS OF 130 MILLION IN 13 3/4 SENIOR SECURED NOTES WE'RE TRYING TO RESTRUCTURE THIS COMPANY SAYS CHIEF EXECUTIVE OFFICER RAYMOND GARFIELD JR WE'RE TRYING TO GIVE IT SOME SHOT AT THE FUTURE VISTA PREVIOUSLY KNOWN AS LOMAS REALTY USA IS ONE OF THE LAST VESTIGES OF THE OLD LOMAS FINANCIAL CORP A MORTGAGE BANKER THAT ENTERED BANKRUPTCYLAW PROCEEDINGS IN 1989 IN THE WAKE OF THE TEXAS REALESTATE BUST BUT WHILE THE REORGANIZATION CLEANED UP MUCH OF THE LOMAS MESS THE PROCESS SWEPT MANY OF LOMAS'S TROUBLES INTO VISTA IT LEFT THE NEW COMPANY WITH HEAVY DEBT TIGHT OPERATING RESTRICTIONS AND JUST ONE TYPE OF ASSET 6700 ACRES OF LAND THREEQUARTERS OF VISTA'S HOLDINGS ARE IN TEXAS CITIES THE COMPANY'S CHARTER INTENDED BY DRAFTERS OF THE BANKRUPTCY PLAN TO KEEP IT OUT OF RENEWED TROUBLE ALLOWS VISTA ONLY TO LIQUIDATE ITS LAND DURING THE BANKRUPTCY PROCEEDINGS THE TOTAL LIQUIDATION VALUE OF VISTA'S PROPERTY WAS ESTIMATED AT 45 MILLION TO 73 MILLION BUT THE SENIOR NOTES ISSUED TO SETTLE CLAIMS OF LOMAS CREDITORS ARE A GROWING BURDEN BECAUSE VISTA HAS PAID INTEREST BY DISTRIBUTING MORE NOTES SOMETHING IT IS PERMITTED TO DO IF CONDITIONS IN THE REALESTATE MARKET PREVENT IT FROM PAYING CASH THE PRINCIPAL TOTALED 1695 MILLION ON DEC 31 AND BECAUSE THE COMPANY IS ISSUING NEW NOTES TO PAY INTEREST DUE EVERY SIX MONTHS THE DEBT IS EXPECTED TO BALLOON TO 253 MILLION BY OCTOBER 1996 WHEN VISTA MUST START MAKING CASH PAYMENTS THAT MEANS THAT EVEN IF VISTA SOLD ALL OF THE PROPERTY IT OWNS AT THE HIGH END OF THE PRICE RANGE IT COULDN'T EVEN PAY OFF HALF ITS DEBT AND THOSE NUMBERS DON'T INCLUDE THE ESTIMATED 15 MILLION ANNUAL COST OF RUNNING THE COMPANY PAYING TAXES AND MANAGING THE PROPERTIES I'VE BEEN VERY FRANK IN SAYING THAT THE CAPITAL STRUCTURE HANDED TO US IN BANKRUPTCY IS PROBLEMATIC MR GARFIELD SAYS IT DOES NOT WORK IN THE FISCAL YEAR ENDED LAST JUNE 30 VISTA HAD A LOSS OF 325 MILLION OR 650 A SHARE FOR THE FIRST QUARTER ENDED SEPT 30 THE COMPANY REPORTED A NET LOSS OF 93 MILLION ON REVENUE OF 273000 NOW VISTA HOPES TO RESOLVE ITS PROBLEMS BY MOVING INTO THE SAME BUSINESSES THAT GOT THE OLD LOMAS INTO TROUBLE IN THE FIRST PLACE REALESTATE INVESTMENT AND DEVELOPMENT ONE OF THE BENEFITS OF NEW MANAGEMENT IS THAT WE WEREN'T AROUND WHEN MOST OF THESE INVESTMENTS WERE MADE AND MOST OF THE MONEY WAS LOST MR GARFIELD SAYS WE'VE GOT NEW MANAGEMENT THAT WAS RECRUITED FROM THE OUTSIDE THAT WE BELIEVE EVERYONE HAS CONFIDENCE IN VISTA OFFICIALS AND NOTEHOLDERS WON'T DISCUSS THEIR TALKS IN ANY DETAIL BUT ACCORDING TO THE COMPANY'S ANNUAL REPORT VISTA WANTS TO TAKE PART IN REALESTATE JOINT VENTURES BUY LAND NEAR ITS PROPERTIES PROVIDE PORTFOLIOMANAGEMENT AND REALESTATE CONSULTING SERVICES AND DEVELOP AND SELL REAL ESTATE FOR THIRD PARTIES IF THE DEBT ISN'T RESTRUCTURED AND THE COMPANY ISN'T ALLOWED TO DO MORE THAN SELL ITS HOLDINGS MR GARFIELD SAYS VISTA PROBABLY WILL DEFAULT ON THE NOTES AND BE THRUST BACK INTO BANKRUPTCY COURT ONCE THE FIRST CASH PAYMENTS ON ITS DEBT ARE DUE THE CHAIRMAN OF A COMMITTEE REPRESENTING THE NOTEHOLDERS ARNIE ESPE AN INVESTMENT MANAGER WITH METROPOLITAN LIFE INSURANCE CO OF NEW YORK DECLINES TO COMMENT BUT ANALYSTS SAY NOTEHOLDERS MAY HAVE LITTLE CHOICE BUT TO RENEGOTIATE THE BONDHOLDERS MAY SAY THE HELL WITH YOU WE WANT WHAT'S LEFT' SAYS BRUCE PAPARELLA RESEARCH DIRECTOR WITH CARR SECURITIES CORP IN NEW YORK A MARKET MAKER FOR VISTA'S STOCK BUT IT ISN'T VERY MUCH MEANWHILE ALTHOUGH VISTA'S CHARTER IS LIMITING THE COMPANY HASN'T BEEN IDLE WHILE MUCH OF ITS PROPERTY IS DIFFICULT TO SELL MANY PROPERTIES ARE IN DEBTSADDLED TAXING DISTRICTS THE COMPANY HAS GOTTEN RID OF ABOUT 1100 ACRES OR 188 MILLION WORTH OF PROPERTY SINCE EMERGING FROM THE BANKRUPTCY REORGANIZATION IN JANUARY 1992 VISTA ALSO NEGOTIATED WITH 1400 TAXING DISTRICTS TO REDUCE THE TAXABLE VALUE OF ITS PROPERTIES BY MORE THAN 50 MOREOVER DESPITE ITS TROUBLES VISTA IS FAR FROM LIVING LEAN MR GARFIELD COLLECTS A 300000 ANNUAL SALARY AN AMOUNT GREATER THAN THE COMPANY'S REVENUE IN THE SEPT 30 QUARTER AND VISTA'S OUTSIDE DIRECTORS RECEIVE ANNUAL RETAINERS OF 36000 PLUS 1500 A MEETING AND RETIREMENT BENEFITS THIRTYSIX THOUSAND DOLLARS TO BE A DIRECTOR IS A LOT SAYS MAX HOLMES DIRECTOR OF DISTRESSED AND BANKRUPT RESEARCH AT SALOMON BROTHERS INC IN NEW YORK THAT'S THE KIND OF RANGE FOR A DIRECTOR OF AT&T OR SOMETHING VISTA OFFICIALS SAY BOARD MEMBERS' COMPENSATION WAS APPROVED BY CREDITORS DURING THE BANKRUPTCY REORGANIZATION IN ADDITION SAYS MR GARFIELD BOARD AND STAFF MEMBERS AREN'T ELIGIBLE FOR STOCK OPTIONS ALTHOUGH VISTA STOCK IS ALMOST WORTHLESS ANYWAY AND THE COMPENSATION IS NECESSARY TO ATTRACT INDIVIDUALS OF THE CALIBER NECESSARY TO TRY TO WORK THIS COMPANY OUT VISTA'S STOCKHOLDERS HAVEN'T BEEN AS LUCKY THE COMPANY'S STOCK IN PINK SHEETS TRADING OF STOCKS THAT AREN'T TRADED ON ANY EXCHANGE OR ON THE NASDAQ STOCK MARKET WENT FOR AS HIGH AS 150 A SHARE IN LATE 1992 CARR SECURITIES SAYS BUT BY THE 1993 THIRD QUARTER IT PLUMMETED TO A PENNY A SHARE THE PRICE HAS REBOUNDED RECENTLY TO A RANGE OF 125 TO 375 CENTS ANALYSTS SAY MANY OF THE ORIGINAL STOCKHOLDERS AND NOTEHOLDERS HAVE SOLD THEIR VISTA SECURITIES AS FOR THE NEW OWNERS OF THE STOCK AND DEBT ANALYSTS SAY THEIR INVESTMENT WAS SMALL TO BEGIN WITH THE RISKS FOR THEM WERE NOT INCREDIBLY HIGH MR PAPARELLA SAYS BUT IF VISTA RESTRUCTURES AND IS GIVEN TIME THE REWARDS COULD BE ASTRONOMICAL A LOOK AT SOME OF VISTA PROPERTIES INC'S LARGEST REALESTATE HOLDINGS IN TEXAS AS OF SEPT 30 1993 9401120021 940112 INSIDE TRACK INSIDERS' SALES ARE TRIGGERED AT PARAMOUNT BY WARREN GETLER AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ONE LITTLENOTICED SIDESHOW TO THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC HAS BEEN A RECENT SPATE OF INSIDER SELLING AMONG KEY EXECUTIVES AT THE ENTERTAINMENT AND PUBLISHING GIANT THE SELLING HAS MOSTLY INVOLVED THE EXERCISE OF OPTIONS GRANTED TO THE EXECUTIVES RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW BUT IT BEGAN AROUND THE TIME THAT IT BECAME APPARENT THAT PARAMOUNT'S STRATEGY OF PURSUING A FRIENDLY MERGER WITH VIACOM INC WHILE IGNORING A HOSTILE BID BY QVC NETWORK INC MIGHT BE OVERTURNED IN COURT NONE OF THE SALES CAUGHT THE PEAK 83 CLOSING SHARE PRICE ATTAINED BY PARAMOUNT'S STOCK ON NOV 12 AMID THE PROTRACTED CONTINUING TAKEOVER BATTLE PARAMOUNT STOCK FETCHED AROUND 55 TO 60 A SHARE BEFORE IT AND VIACOM ANNOUNCED A FRIENDLY MERGER SEPT INSIDERS REFRAINED FROM SELLING DURING THE FIRST TWO MONTHS OF THE STRUGGLE WHICH BEGAN IN EARNEST WHEN QVC LAUNCHED ITS HOSTILE BID SEPT 20 INSTEAD THE SALES BEGAN FOLLOWING THE FIRST HEARING IN DELAWARE COURT NOV 16 WHEN THE JUDGE PEPPERED VIACOM LAWYERS WITH TOUGH QUESTIONS THAT FIRST SIGNALED THAT THE PARAMOUNTVIACOM MERGER MIGHT BE DERAILED ON NOV 24 IN THE FIRST OF TWO DECISIONS THE COURTS EFFECTIVELY SIDETRACKED THE FRIENDLY MERGER AND FORCED PARAMOUNT TO CONSIDER A HOSTILE BID BY QVC TWO OTHER FACTORS FUELED A DROPOFF IN PARAMOUNT'S STOCK PRICE AT THE TIME OF THREE INSIDERS' SALES BETWEEN NOV 16 AND NOV 23 INVESTORS WERE DISAPPOINTED AT AN OFFER QVC MADE NOV 12 WHICH PARAMOUNT REJECTED NOV 15 AS TOO CONDITIONAL AND PARAMOUNT WAS REMOVED FROM THE STANDARD & POOR'S 500 INDEX TRIGGERING SELLING BY STOCKINDEX FUNDS A PARAMOUNT SPOKESMAN SAID THAT THE SALES DIDN'T REFLECT INSIDERS' PERSPECTIVES ON THE OUTCOME OF THE BIDDING WAR BETWEEN QVC NETWORK AND VIACOM FOR THE NEW YORKBASED COMPANY RATHER HE SAID THE SALES WERE FOR STRICTLY PERSONAL REASONS HAVING TO DO WITH YEAREND TAX PLANNING AND ALSO TO PAY FOR THE EXERCISE OF OPTIONS JEFF LOGSDON AN ANALYST WITH SEIDLER CO LOS ANGELES SAID THAT EARLY ON WHEN IT LOOKED AS IF VIACOM AND PARAMOUNT WOULD MERGE MANAGEMENT AT PARAMOUNT INDICATED THAT ALL OF THEIR OPTIONS WERE GOING TO BE ROLLING INTO THE NEW COMPANY AND THAT NO ONE WOULD BE DISPOSING OF THEIR POSITIONS NOW THAT THINKING HAS LONG SINCE GONE BY THE WAYSIDE AS THE PRICE HAS MOVED UP WHO WOULDN'T SELL HE ASKS A SIGNIFICANT AMOUNT OF STOCK WILL COME OUT AFTER THE TRANSACTION CLOSES BECAUSE A NUMBER OF ARBITRAGERS HAVE BEEN THE MAIN ACCUMULATORS OF PARAMOUNT STOCK OVER THE PAST THREE MONTHS BY OUR ESTIMATES THE ARBS OWN OVER 50 OF THIS COMPANY SOME OUTSIDE OBSERVERS SAID THE SALES ALTHOUGH OF MINOR OVERALL SIGNIFICANCE IN THE CONTEXT OF THE CORPORATE SLUGFEST BETWEEN VIACOM AND QVC WERE WORTH NOTING THE DEAL TO ACQUIRE THE COMPANY MAY BE A LOCK BUT THE VALUE CERTAINLY ISN'T SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA FIRM THAT ANALYZES DATA FILED WITH THE SEC BY CASHING IN NOW THESE INSIDERS ARE PROBABLY HEDGING THEIR BETS IN THE EVENT THAT THE ULTIMATE VALUE TURNS OUT TO BE LOWER THAN EARLIER EXPECTATIONS ED HATCH MEDIA AND ENTERTAINMENT ANALYST WITH UBS SECURITIES SAYS THE DISPOSALS SEEM TO INDICATE AT THE VERY LEAST NO EXPECTATIONS OF A SUBSTANTIALLY HIGHER BID INSIDER SELLING AT THESE LEVELS MAY INDICATE A BELIEF THAT NEITHER VIACOM OR QVC WILL MAKE A MATERIAL INCREASE FROM THEIR CURRENT BIDS RONALD NELSON PARAMOUNT'S CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT DISPOSED OF THE LARGEST CLUTCH OF SHARES SELLING 60000 AT AN AVERAGE 7650 APIECE ON NOV 23 THE DATA SHOW MR NELSON STILL HOLDS 210906 SHARES PLUS CURRENTLY EXERCISABLE OPTIONS TO ACQUIRE AN ADDITIONAL 47550 SHARES LAWRENCE LEVINSON SENIOR VICE PRESIDENT FOR GOVERNMENT RELATIONS SOLD 38950 SHARES THE SECONDLARGEST CLUSTER AT ABOUT 7813 EACH ON NOV 18 SEC DATA SHOW FOLLOWING THAT SALE MR LEVINSON HOLDS 20109 SHARES BUT NO OPTIONS ACCORDING TO CDA/INVESTNET RUDOLPH HERTLEIN SENIOR VICE PRESIDENT OF INTERNAL AUDITS AND SPECIAL PROJECTS SOLD 16750 SHARES BETWEEN NOV 16 AND NOV 19 AT PRICES AVERAGING 78 A SHARE THAT SALE REPRESENTED THE DISPOSAL OF ALL OF HIS CURRENTLY VESTED OPTIONS THE PARAMOUNT EXECUTIVE STILL HAS 7810 SHARES AS WELL AS OPTIONS TO ACQUIRE AN ADDITIONAL 15000 SHARES BEGINNING SEPTEMBER 1995 STANLEY JAFFE THE COMPANY'S PRESIDENT CHIEF OPERATING OFFICER AND A PARAMOUNT DIRECTOR HAD REGISTERED WITH THE SEC HIS INTENTION TO SELL 233332 SHARES ON OR ABOUT NOV 26 THOSE SHARES REPRESENTED ALL OF HIS EXERCISABLE OPTIONS BUT ACCORDING TO THE COMPANY'S SPOKESMAN MR JAFFE DECIDED NOT TO SELL SAMUEL SILBERMAN AN OUTSIDE DIRECTOR ALSO NUMBERED AMONG THE SELLERS BUT THROUGH INDIRECTLYHELD SHARES VARIOUS TRUSTS WHERE HE SERVES AS TRUSTEE SOLD 9000 SHARES IN NOVEMBER AND ANOTHER 9916 SHARES IN LATE DECEMBER AT ROUGHLY 79 TO 81 A SHARE HIS WIFE SOLD SOME 6062 SHARES AT AROUND 8125 THE DATA SHOW THE PARAMOUNT DIRECTOR HAS BEEN WINDING DOWN HIS DIRECT AND INDIRECT HOLDINGS WHICH STOOD AT A COMBINED 75128 SHARES IN LATE OCTOBER THROUGH A SERIES OF GIFTS AND OPENMARKET SALES THOSE HOLDINGS HAVE BEEN WHITTLED DOWN TO 6148 SHARES ACCORDING TO CDA/INVESTNET 9401120020 940112 WHO'S NEWS AMROP INTERNATIONAL AMROP INTERNATIONAL PARIS JOHN F JOHNSON PRESIDENT OF THE LAMALIE AMROP INTERNATIONAL UNIT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS FRENCHBASED EXECUTIVESEARCH FIRM MR JOHNSON 51 YEARS OLD THE FIRST AMERICAN TO HOLD THAT POSITION SUCCEEDS GIANNI DELL'ORTO WHO HAS COMPLETED HIS TWOYEAR TERM AS CHAIRMAN OF THE COMPANY MR DELL'ORTO 54 CONTINUES AS SENIOR PARTNER OF THE TMC AMROP INTERNATIONAL UNIT BASED IN MILAN ITALY 9401120019 940112 SMITH BARNEY REMSEN ALLIANCE NEW YORK SMITH BARNEY SHEARSON INC AND REMSEN PARTNERS LTD A PRIVATELY HELD REALESTATE FINANCING GROUP SAID THEY FORMED A STRATEGIC ALLIANCE TO PROVIDE LONGTERM FINANCING FOR COMMERCIAL REAL ESTATE UNDER THE AGREEMENT NEW YORKBASED REMSEN WILL ORIGINATE COMMERCIALMORTGAGE LOANS WHICH SMITH BARNEY SHEARSON WILL THEN FUND AND EVENTUALLY POOL AND SELL AS MORTGAGEBACKED SECURITIES SMITH BARNEY A SUBSIDIARY OF TRAVELERS INC SAID IT HOPES THE MOVE WILL BOOST ITS COMMERCIALMORTGAGEBACKED SECURITIES BUSINESS THE BROKERAGE UNIT AND REMSEN SAID THEY EXPECT THE ALLIANCE TO GENERATE MORE THAN 1 BILLION IN FINANCINGS THIS YEAR 9401120018 940112 WHAT'S NEWS WORLDWIDE NATO'S LEADERS REAFFIRMED A BOSNIA AIRSTRIKE THREAT ENDING A TWODAY SUMMIT WESTERN LEADERS ANNOUNCED THEIR WILLINGNESS TO ORDER BOMBING RAIDS AGAINST BOSNIAN SERBS BUT DOUBTS LINGERED ABOUT THE ALLIANCE'S WILL TO TAKE ACTION UNDER INTENSE PRESSURE FOR A STRONGER RESPONSE TO THE WAR IN BOSNIA THE NATO ALLIES RAISED THE PROSPECT OF AIR STRIKES AGAINST SERBS BLOCKING THE EVACUATION OF CANADIAN PEACEKEEPERS IN SREBRENICA AND PREVENTING THE OPENING OF AN AIRPORT IN TUZLA HOWEVER THE NATO STATEMENT FELL SHORT OF THE EXPLICIT THREAT OF IMMEDIATE AIR STRIKES THAT BRITAIN AND FRANCE HAD SOUGHT BOSNIAN FACTIONS CLASHED IN SARAJEVO KILLING NINE PEOPLE AND HALTING RELIEF FLIGHTS INTO THE CITY JUST HOURS AFTER THEY HAD RESUMED MUSLIMCROAT FIGHTING RAGED IN CENTRAL BOSNIA CLINTON ARRIVED IN PRAGUE AND WON THE SUPPORT OF CZECH PRESIDENT HAVEL FOR A USINSPIRED PLAN TO TIGHTEN EASTERN EUROPE'S TIES WITH NATO THOUGH THE PLAN DOESN'T GRANT THE FULL NATO MEMBERSHIP THAT FORMER WARSAW PACT NATIONS WANT HAVEL SAID THE CZECH REPUBLIC WAS READY TO IMPLEMENT IT IMMEDIATELY A DENVER ACCOUNTING FIRM HAS REFUSED TO VOUCH FOR THE ACCURACY OF ITS 1992 FINDINGS CONCERNING THE CLINTONS' WHITEWATER VENTURE AND THE HEAD OF THE FIRM HAS LINKS TO A LONGTIME CLINTON FRIEND THE PRESIDENT SAID HE IS RECONSIDERING HIS OPPOSITION TO HAVING A SPECIAL COUNSEL NAMED TO INVESTIGATE WHITEWATER ORGANIZED LABOR WILL WAGE AN ALLOUT EFFORT TO WIN PASSAGE OF CLINTON'S HEALTHCARE BILL THE AFLCIO'S KIRKLAND SAID I KNOW OF NO ISSUE THAT IS MORE IMPORTANT RIGHT NOW TO THE NATION'S FUTURE HE TOLD REPORTERS THE AFLCIO'S FIGHT AGAINST NAFTA HAD LEFT IN DOUBT THE DEGREE TO WHICH UNIONS WOULD BACK THE HEALTH PLAN RUSSIA'S YELTSIN OPENED A NEW PARLIAMENTARY SESSION WITH A PLEA FOR COOPERATION AND COMPROMISE BUT WRANGLING ERUPTED ALMOST IMMEDIATELY BETWEEN COMMUNIST AND NATIONALIST LAWMAKERS MEANWHILE PRESIDENT CLINTON IS DUE TO ARRIVE IN MOSCOW TONIGHT FOR TALKS WITH THE RUSSIAN PRESIDENT MOSCOW AGREED TO ACCEPT WASHINGTON'S ASSISTANCE IN DESTROYING SOME 44000 TONS OF CHEMICAL WEAPONS MEMBERS OF A HOUSE ARMED SERVICES COMMITTEE DELEGATION ANNOUNCED THE AGREEMENT AMOUNTS TO A PLEDGE BY THE RUSSIAN GOVERNMENT TO ACCELERATE THE DESTRUCTION OF ITS MASSIVE CHEMICALWEAPONS STOCKPILE A MEXICAN PRESIDENTIAL AIDE CALLED FOR TALKS ON ENDING AN UPRISING IN SOUTHERN MEXICO REBELS SAID THEY WOULD NEGOTIATE IF THE MILITARY STOPS BOMBING WITHDRAWS ITS TROOPS AND RECOGNIZES THEIR MOVEMENT OTHERWISE THEY VOWED TO ADVANCE TO THE CAPITAL THE PLO HAS DROPPED ITS DEMAND FOR A 116SQUAREMILE PALESTINIAN SELFRULE AREA AROUND THE WEST BANK TOWN OF JERICHO AND IS READY TO ACCEPT A SMALLER ENCLAVE ACCORDING TO ISRAELI AND PLO OFFICIALS BUT THEY SAID THE TWO SIDES WHICH HAVE BEEN MEETING IN THE EGYPTIAN RESORT OF TABA HADN'T YET AGREED ON THE SIZE OF THE AREA THE SUPREME COURT MADE IT HARDER FOR PROSECUTORS TO PROVE CASES ALLEGING A COMMON TYPE OF MONEYLAUNDERING IN A SETBACK FOR ANTIDRUG EFFORTS THE COURT SAID PROSECUTORS MUST SHOW DEFENDANTS KNEW THEY COMMITTED A CRIME IN ORDER TO CONVICT THEM OF EVADING A REQUIREMENT TO REPORT BIG CASH TRANSACTIONS THE US MILITARY IS NEARING AGREEMENT ON A POLICY THAT WILL ALLOW WOMEN TO SERVE IN SOME GROUND COMBAT UNITS A PENTAGON SPOKESWOMAN SAID THAT UNDER THE GUIDELINES FEMALE TROOPS IN THE ARMY AND MARINE CORPS WOULD BE BARRED FROM FRONTLINE INFANTRY BUT THAT WOMEN COULD JOIN ANTIAIRCRAFT AND ARTILLERY UNITS FOUR SENATORS URGED CLINTON TO ALTER THE WHITE HOUSE'S ALLBUTCOMPLETE PROPOSAL FOR CLEANING UP ABANDONED HAZARDOUSWASTE SITES THE FOUR LAWMAKERS WHO ARE LIKELY TO PLAY A ROLE IN REWRITING THE SUPERFUND LAW ARGUED FOR TOUGHER CLEANUP REQUIREMENTS THAN CONTEMPLATED IN AN INTERAGENCY PLAN LOCAL RESIDENTS WOULD BE GIVEN MORE POWER TO SHAPE GRAZING RULES UNDER A PLAN THE ADMINISTRATION IS CONSIDERING THE INTERIOR DEPARTMENT SAID A SET OF DETAILED PRESERVATION STANDARDS PROPOSED IN AUGUST WILL BE REDUCED TO BROAD MANDATES 9401120017 940112 PEPSICO TO SELL VODKA RIGHTS TO GRAND MET ACTION FOLLOWS US INQUIRY ON TIES TO DISTRIBUTOR OF STOLICHNAYA BRAND BY LAURIE M GROSSMAN AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL PEPSICO INC AGREED TO SELL ITS US DISTRIBUTION RIGHTS FOR STOLICHNAYA VODKA TO GRAND METROPOLITAN PLC IN A SURPRISING MOVE LIKELY TO STEP UP COMPETITION IN THE US VODKA MARKET THE ACTION FOLLOWS A YEARANDAHALFLONG INVESTIGATION BY THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS OF THE CLOSE TIES BETWEEN PEPSICO AND THE SMALL WHITE PLAINS NY FIRM THROUGH WHICH IT DISTRIBUTED THE STOLICHNAYA MONSIEUR HENRI WINES LTD THE PROBE FOLLOWED A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL REPORTING THAT CORPORATE DOCUMENTS AND COMPANY INSIDERS HAD SUGGESTED THAT PEPSI HAD A HEAVY HAND IN M HENRI'S OPERATIONS PEPSI IS PROHIBITED IN SOME PARTS OF THE COUNTRY FROM BOTH DISTRIBUTING LIQUOR AND SELLING IT AS IT DOES THROUGH SOME OF ITS RESTAURANTS THAT INVESTIGATION IS COMING TO A CONCLUSION NOW ACCORDING TO PEOPLE FAMILIAR WITH THE PROBE WITH M HENRI AGREEING TO PAY BETWEEN 100000 AND 200000 TO SETTLE THE CASE THE SETTLEMENT STILL HAS TO BE COMPLETED THEY SAID ONE OF THOSE INDIVIDUALS SAID THE US AGENCY HAD DETERMINED THAT M HENRI HAD VIOLATED ITS IMPORT PERMIT BY FAILING TO DISCLOSE THAT PEPSI HAD EXERCISED CONTROL OVER ITS OPERATIONS THAT COULD HAVE FORCED THE SUSPENSION OF THE PERMIT OR PROSECUTION OF M HENRI ACCORDING TO THE INDIVIDUALS WILLIAM HOBER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF M HENRI CONFIRMED THAT A SETTLEMENT OF THE INVESTIGATION WAS NEAR BUT WOULDN'T COMMENT SPECIFICALLY A PEPSICO SPOKESMAN WOULDN'T COMMENT ON THE INVESTIGATION BUT SAID THE SALE OF DISTRIBUTION RIGHTS TO GRAND MET OF LONDON HAD NOTHING TO DO WITH THE INQUIRY HE SAID THE ACTION WAS TAKEN TO TRY TO HELP BUILD STOLICHNAYA SALES PEPSI DIDN'T DISCLOSE THE AMOUNT OF THE DEAL PEPSI BASED IN PURCHASE NY WILL CONTINUE TO HOLD THE RIGHTS TO THE STOLICHNAYA TRADEMARK IN THE US UNTIL ITS AGREEMENT WITH THE RUSSIAN MANUFACTURERS OF THE VODKA EXPIRES IN 2000 AS IT DID UNDER ITS RELATIONSHIP WITH M HENRI PEPSI SAID THE NEW DISTRIBUTOR ARRANGEMENT WON'T HAVE AN APPRECIABLE EFFECT ON ITS BOTTOM LINE IN THE NEAR TERM PEPSI DOESN'T DISCLOSE VODKA REVENUE BUT THE NEW ARRANGEMENT MOST CERTAINLY WILL STEP UP VODKA WARS IN THE US ACCORDING TO INDUSTRY EXPERTS FOR NEARLY 20 YEARS PEPSI HAD BARTERED ITS COLA IN THE FORMER SOVIET UNION IN PROPORTION TO THE AMOUNTS OF VODKA IT IMPORTED THAT COUNTERTRADE ARRANGEMENT WHICH KEPT COKE AT BAY IN THAT MARKET UNTIL RECENTLY WAS REPLACED WITH CASH SALES IN THE PAST YEAR OR SO AS THE RUSSIAN COMPANIES WERE PRIVATIZED THAT LEFT PEPSI WITH A BRAND WITH PROBLEMS STOLICHNAYA DISTRIBUTORS IN THE US SAY THEY OFTEN HAD A HARD TIME GETTING THE PRODUCT IN RECENT YEARS AS TURMOIL IN THE FORMER SOVIET UNION DELAYED PRODUCTION AND CUT OFF PRODUCT AND PACKAGING SUPPLIES STOLI WHICH USED TO BE THE NO 1 VODKA IMPORT IN THE US NOW RANKS SECOND TO ITS COMPETITOR ABSOLUT AFTER THE SUPPLY PROBLEMS ANTISOVIET FEELINGS AND LACKLUSTER MARKETING HURT THE BRAND STOLI GREW 15 LAST YEAR TO HOLD ABOUT 21 OF THE MARKET ACCORDING TO PRELIMINARY ESTIMATES FROM IMPACT A SPIRITSINDUSTRY NEWSLETTER ABSOLUT POSTED A HEALTHY 6 GROWTH RATE LAST YEAR TO HOLD 63 OF THE MARKET ACCORDING TO IMPACT ESTIMATES INDUSTRY EXPERTS EXPECT GRAND MET'S ACQUISITION TO STEP UP COMPETITION IN THE US VODKA MARKET THE MOVE COMES JUST FOUR MONTHS AFTER SEAGRAM CO STUNNED THE LIQUOR WORLD BY SNATCHING AWAY FROM GRAND MET THE DISTRIBUTION RIGHTS FOR ABSOLUT VODKA THIS OPENS A NEW ERA IN THE VODKA WARS SAYS MARVIN SHANKEN PUBLISHER OF IMPACT WE ARE NOW GOING TO SEE TWO VERY SERIOUS PLAYERS GO HEADTOHEAD GRAND MET'S ACQUISITION OF THE RUSSIAN VODKA ALSO SETTLES ONE OF THE LIQUOR INDUSTRY'S MOST CLOSELY WATCHED CAREER MOVES THE FATE OF MICHEL ROUX THE GRAND MET EXECUTIVE WHO USED WITTY ADVERTISEMENTS TO TRANSFORM ABSOLUT FROM AN OBSCURE SWEDISH BRAND INTO THE US'S TOPSELLING IMPORTED VODKA MR ROUX PRESIDENT OF GRAND MET'S CARILLON IMPORTERS UNIT WILL REMAIN WITH CARILLON AND OVERSEE GRAND MET'S MARKETING OF STOLICHNAYA GRAND MET'S ACQUISITION OF STOLICHNAYA MAY MAKE IT HARDER FOR SEAGRAM TO CAPITALIZE ON ITS NEW ABSOLUT BRAND LIQUOR EXPERTS SAY I WOULD NOT WANT TO HAVE THE JOB AT SEAGRAM OF RUNNING ABSOLUT RIGHT NOW SAYS JOEL WHITAKER EDITOR OF KANE'S BEVERAGE WEEK A NEWSLETTER IT INCREASES THE PRESSURES ON WHOMEVER IS RUNNING ABSOLUT TO MAINTAIN VOLUME AND MARGINS SEAGRAM DECLINED TO COMMENT UNDER GRAND MET STOLICHNAYA'S 31 MILLION AD BUDGET IS EXPECTED TO INCREASE SHARPLY TO BETTER COMPETE WITH ABSOLUT'S 15 MILLION AD BUDGET ABSOLUT IS ONE OF THE MOST HEAVILY ADVERTISED LIQUOR BRANDS ACCORDING TO COMPETITIVE MEDIA REPORTING WHILE MR ROUX DECLINED TO DISCUSS HIS PLANS FOR STOLI YESTERDAY A GRAND METROPOLITAN SPOKESWOMAN SAID WE INTEND TO BUILD STOLICHNAYA INTO A FORMIDABLE COMPETITOR 9401120016 940112 TOYS R' US TO BUY STOCK FOR 1 BILLION CASHRICH RETAILER PLANS TO OPEN 115 STORES IN '94 MOSTLY ABROAD BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL TOYS R US INC FLUSH WITH CASH FROM ITS THRIVING US STORES SAID IT PLANS TO SPEND AS MUCH AS 1 BILLION BUYING BACK ITS SHARES OVER SEVERAL YEARS WHILE MOUNTING AN AGGRESSIVE EXPANSION DRIVE THE PARAMUS NJ RETAILER SAID IT WILL OPEN 115 NEW TOY STORES IN 1994 INCLUDING 70 IN INTERNATIONAL MARKETS SUCH AS SPAIN GERMANY AND JAPAN THAT IT HAS TARGETED FOR ITS FASTEST GROWTH THE MOVES SIGNAL THAT THE RETAILER WHICH ALREADY SELLS 20 OF ALL TOYS IN THE US IS CONFIDENT THAT IT CAN GAIN MARKET SHARE PROFITABLY EVEN AS IT MOVES INTO NEW MARKETS OVERSEAS WHERE SELLING TOYS AT DISCOUNT PRICES AND IN WIDE ASSORTMENTS IS A RELATIVELY NEW CONCEPT CONCERNS ABOUT OVERSATURATION OF THE US MARKET WHERE TOYS R US DOMINATES WITH 581 TOY STORES HAVE HURT TOYS R US STOCK IN THE PAST COUPLE YEARS ESPECIALLY AS THE COMPANY DIRECTED MORE ATTENTION TO NEW STORE FORMATS SUCH AS BOOKS R US BUT MICHAEL GOLDSTEIN VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY THINKS THERE'S ROOM FOR ABOUT 900 STORES IT'S JUST A QUESTION OF FILLING IN THE JIGSAW PUZZLE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TOYS R US SHARES CLOSED AT 3875 UP 50 CENTS THIS IS A PRETTY CLEAR SIGNAL THAT THE COMPANY IS VERY BULLISH ON ITS FUTURE SAID SEAN MCGOWAN AN ANALYST FOR GERARD KLAUER MATTISON & CO AT THE CURRENT SHARE PRICE TOYS R US COULD BUY BACK ABOUT 26 MILLION SHARES OR ABOUT 12 OF ITS SHARES OUTSTANDING THE LAST TIME THE COMPANY AUTHORIZED A SHAREREPURCHASE PROGRAM WAS FOUR YEARS AGO WHEN IT SET OUT TO BUY FIVE MILLION COMMON SHARES FUNDING FOR THE BUYBACK ANNOUNCED YESTERDAY WILL COME MOSTLY FROM PROFITS GENERATED BY THE CHAIN'S US STORES SAID ROBERT NAKASONE PRESIDENT AND CHIEF OPERATING OFFICER DESPITE THE AGGRESSIVE EXPANSION PLANS IN 1994 TOYS 'R' US IS GENERATING SUBSTANTIAL EXCESS CASH FLOW THE COMPANY SAID IN A NEWS RELEASE THE COMPANY WHICH HAD 122 MILLION IN CASH AT THE END OF OCTOBER SAID IT WOULD UNDERTAKE THE BUYBACK OVER SEVERAL YEARS IT WASN'T MORE SPECIFIC TOYS R US HAS YET TO REPURCHASE ABOUT 300000 SHARES AUTHORIZED UNDER THE 1990 BUYBACK THE 1 BILLION SHARE REPURCHASE PROGRAM IS MORE AMBITIOUS THAN I HAD ANTICIPATED MR MCGOWAN THE ANALYST SAID POLITICS ANALYSTS SAID TOYS R US ELECTED TO SPEND ITS EXCESS CASH ON A BUYBACK PROGRAM RATHER THAN FUNDING NEW STORES WITH THE CASH PARTLY BECAUSE OF TAX BREAKS CURRENCY RISKS AND FOREIGN POLITICS WHEN OPENING NEW STORES OVERSEAS TOYS R US HAS A POLICY OF BORROWING MONEY IN COUNTRIES IN WHICH THEY OPEN NEW STORES SAID JOSEPH RONNING AN ANALYST FOR BROWN BROTHERS HARRIMAN THEY GET TAX BREAKS AND THE MONEY IS ALL IN ONE PLACE WHICH IS A WISE THING TO DO ESPECIALLY IN LIGHT OF POLITICAL UNREST ASSOCIATED WITH SOME INTERNATIONAL MARKETS THE EXPANSION PLANNED FOR THIS YEAR WOULD SLIGHTLY EXCEED GROWTH IN 1993 WHEN TOYS R US OPENED 108 TOY STORES 41 IN THE US AND 67 ABROAD THE COMPANY HAS 234 STORES ABROAD WHERE IT SEES GREATER POTENTIAL FOR GROWTH THAN IN THE US TOYS R US SAID IT PLANS TO ACCELERATE ITS OVERSEAS EXPANSION BY ALLOWING ITS FIRST FRANCHISES WHICH WILL BE IN MIDEAST NATIONS INCLUDING THE UNITED ARAB EMIRATES QATAR BAHRAIN OMAN AND KUWAIT WITH CULTURAL DIFFERENCES AND VARIOUS LAWS PROHIBITING COMPLETE OWNERSHIP BY FOREIGN ENTITIES IN MANY COUNTRIES THE FRANCHISING CONCEPT WILL ALLOW US TO GET INTO COUNTRIES AND REGIONS OF THE WORLD THAT WE MAY NEVER HAVE CONSIDERED MR NAKASONE SAID 9401120015 940112 MARKETING & MEDIA PARAMOUNT DIRECTORS ARE EXPECTED TO STAY WITH QVC'S PROPOSAL A WALL STREET JOURNAL NEWS ROUNDUP PARAMOUNT COMMUNICATIONS INC'S BOARD TODAY IS EXPECTED TO STICK WITH ITS ENDORSEMENT OF THE 98 BILLION TAKEOVER BID BY QVC NETWORK INC REJECTING VIACOM INC'S RESTRUCTURED 93 BILLION OFFER AT A MEETING THIS AFTERNOON THE BOARD MAY ALSO ATTEMPT TO ENCOURAGE THE TWO CONTESTANTS TO MAKE THEIR BEST BIDS SOONER RATHER THAN LATER OR SEEK SOME OTHER WAY TO BRING THE SLOWMOVING BIDDING PROCESS TO A CLOSE SOME DIRECTORS HAVE BEEN DESCRIBED AS IMPATIENT OVER THE FACT THAT VIACOM EXTENDED THE BIDDING FOR TWO WEEKS BY BOOSTING THE CASH IN ITS OFFER WITHOUT INCREASING THE BID'S OVERALL VALUE SEPARATELY SHAREHOLDERS OF BLOCKBUSTER ENTERTAINMENT CORP FILED FOUR LAWSUITS AGAINST THE COMPANY CHARGING THAT ITS PLANNED TAKEOVER BY VIACOM WOULD BENEFIT TOP EXECUTIVES AT THE EXPENSE OF OTHER INVESTORS UNDER THE PLAN VIACOM WOULD USE CASH FROM BLOCKBUSTER FOR ITS OFFER FOR PARAMOUNT THE COMPLAINTS FILED IN DELAWARE STATE COURT YESTERDAY ALLEGE THAT BLOCKBUSTER'S CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA AND VIACOM'S CHIEF EXECUTIVE SUMNER REDSTONE ENGINEERED THE AGREEMENT FOR THEIR PERSONAL GAIN AND THAT CONTROL OF THE COMPANY IS BEING HANDED TO MR REDSTONE WITHOUT ADEQUATELY COMPENSATING SHAREHOLDERS THE COMPLAINTS ALL MAKE SIMILAR CLAIMS THAT THE OFFICERS SHOULD HAVE SHOPPED THE COMPANY AROUND BEFORE MAKING A DEAL THAT BLOCKBUSTER IS BEING SWALLOWED BY A WEAKER DEBTLADEN COMPANY AND THAT MR REDSTONE IS GRABBING CONTROL OF THE COMPANY FROM THE SHAREHOLDERS WITHOUT INVESTING HIS OWN MONEY VIACOM AND BLOCKBUSTER SAID THE COMPLAINTS ARE WITHOUT MERIT AND SHOULD BE DISMISSED SUCH LAWSUITS ARE COMMON IN ANY LARGE ACQUISITION BUT ANALYSTS NOTED THAT IF VIACOM DOESN'T WIN PARAMOUNT THE VALUE OF VIACOM'S STOCK WILL SKYROCKET FATTENING THE DEAL FOR BLOCKBUSTER SHAREHOLDERS IF THE PARAMOUNT DEAL GOES AWAY THESE SUITS WILL ALL DISAPPEAR SAID CRAIG BIBB ANALYST WITH PAINEWEBBER THEY'LL GET A NICE PRICE 9401120014 940112 WHO'S NEWS MORGAN STANLEY GROUP INC MORGAN STANLEY GROUP INC NEW YORK PHILIP DUFF 36 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS INVESTMENT BANKING COMPANY EFFECTIVE JAN 31 MR DUFF FORMERLY A MANAGING DIRECTOR IN CHARGE OF MORGAN STANLEY'S FINANCIAL INSTITUTIONS GROUP WILL SUCCEED ALLEN ZERN 50 WHO IS RETIRING AFTER 28 YEARS WITH THE COMPANY 9401120013 940112 KEY TRONIC LAYOFFS CHARGE SPOKANE WASH KEY TRONIC CORP SAID IT WILL LAY OFF 100 FULLTIME EMPLOYEES AND 200 TEMPORARY EMPLOYEES IN A PLAN TO RESTRUCTURE ITS PRODUCTION AND WILL TAKE AN UNSPECIFIED CHARGE FOR ITS FISCAL SECOND QUARTER ENDED JAN 1 THE RESTRUCTURING IS PART OF THE COMPUTERKEYBOARD MAKER'S ACQUISITION OF HONEYWELL INC'S KEYBOARD BUSINESS LAST YEAR AND DOESN'T CONSTITUTE DOWNSIZING THE COMPANY SAID 9401120012 940112 BUSINESS BRIEF FEDERAL EXPRESS WINS GM CONTRACT TO CARRY PACKAGES AND PARTS MEMPHIS TENN FEDERAL EXPRESS CORP SAID IT WON A MULTIYEAR CONTRACT FROM GENERAL MOTORS CORP TO THE CARRY ALL OF THE AUTO MAKER'S OVERNIGHT LETTERS PACKAGES AND PARTS FOR DEALERS FEDERAL EXPRESS DECLINED TO SPECIFY THE DURATION OR VALUE OF THE CONTRACT EXCEPT TO SAY IT WOULD BE WORTH TENS OF MILLIONS OF DOLLARS A YEAR ANALYSTS SAID THE AWARD WOULDN'T CHANGE THEIR EARNINGS ESTIMATES FOR THE COMPANY THE CONTRACT IS THE LATEST COUP FOR FEDERAL EXPRESS IN THE GROWING WAR OVER EXCLUSIVE DEALS IN THE EXPRESSDELIVERY INDUSTRY AS COMPANIES DELIVER MORE GOODS BY OVERNIGHT AND PRIORITY DELIVERY THEY ARE INCREASINGLY WILLING TO GIVE MOST OR ALL OF THEIR BUSINESS TO ONE CARRIER IN EXCHANGE FOR BULK DISCOUNTS FEDERAL EXPRESS FOR INSTANCE RECENTLY WON AN EXCLUSIVE CONTRACT FOR LL BEAN'S BUSINESS UNITED PARCEL SERVICE RECENTLY BECAME THE PREFERRED SHIPPER FOR CITICORP AND JC PENNEY AND AIRBORNE EXPRESS HANDLES THE BULK OF IBM'S US BUSINESS AS PART OF THE GM CONTRACT FEDERAL EXPRESS IS EXPECTED TO CUT THE AUTO MAKER'S SHIPPING COSTS OVER THE LENGTH OF THE AGREEMENT FEDERAL EXPRESS FOR INSTANCE MAY INSTALL COMPUTERS IN GM FACILITIES ELIMINATING THE NEED FOR GM STAFFERS TO HANDLE BILLING PAPERS FEDERAL EXPRESS HAD BEEN HANDLING SOME OF GM'S DELIVERY BUSINESS BUT THE NEW CONTRACT MORE THAN DOUBLES THE BUSINESS FROM THE COMPANY SAID WILLIAM J RAZZOUK EXECUTIVE VICE PRESIDENT FOR GLOBAL CUSTOMER SERVICES AT FEDERAL EXPRESS GM IS NOW AMONG FEDERAL EXPRESS'S TOP FIVE CUSTOMERS ALTHOUGH THE COMPANY WON'T HANDLE PARTS FOR MANUFACTURING PLANTS IT WILL CARRY PARTS TO DEALERS A 24 BILLION BUSINESS FOR GM 9401120011 940112 WHO'S NEWS DETROIT EDISON NAMES LILCO'S AF EARLEY TO THREE POSITIONS DETROIT ANTHONY F EARLEY JR CREDITED WITH RECOUPING SOME LOSSES ASSOCIATED WITH ANOTHER UTILITY'S FAILED NUCLEAR PLANT WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF DETROIT EDISON CO EFFECTIVE MARCH 1 PRIOR TO BECOMING PRESIDENT IN 1989 OF LONG ISLAND LIGHTING CO HICKSVILLE NY MR EARLEY 44 YEARS OLD SERVED AS LILCO'S GENERAL COUNSEL AND WAS WIDELY CREDITED WITH STEERING THE COMPANY THROUGH THE SHOREHAM NUCLEARPLANT CONTROVERSY THE UTILITY DECIDED TO CLOSE THE FACILITY IN THE FACE OF MOUNTING CONTROVERSY AND LITIGATION MR EARLEY HELPED NEGOTIATE A DEAL WITH THE STATE THAT ENABLED LILCO TO RECOUP MOST OF ITS INVESTMENT IN SHOREHAM THROUGH A SERIES OF RATE INCREASES THROUGH THE 1990S BECAUSE OF HIS SUCCESSES AT LILCO SOME ANALYSTS CONSIDERED HIM THE HEIR APPARENT TO WILLIAM J CATACOSINOS 63 LILCO'S CHAIRMAN AND CHIEF EXECUTIVE I'M SURPRISED HE'S LEAVING WHEN HE COULD HAVE BEEN CEO IN A FEW YEARS SAID BARRY M ABRAMSON AN ANALYST WITH PRUDENTIAL SECURITIES GROUP INC MAYBE HE CAN USE HIS EXPERTISE IN NUCLEAR ISSUES AT THE FERMI PLANT WHICH SEEMS VERY IMPORTANT TO DETROIT EDISON HIS APPOINTMENT COMES AS DETROIT EDISON IS ASSESSING THE DAMAGES CAUSED LAST MONTH BY A FIRE AT ITS FERMI 2 NUCLEAR POWER PLANT IN MONROE MICH THE COMPANY HAS SAID THE RESULTING SHUTDOWN AT THE PLANT COULD AFFECT 1994 EARNINGS JOHN E LOBBIA 52 WHO FORMERLY HELD THE POSITION OF DETROIT EDISON PRESIDENT WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UTILITY A SPOKESWOMAN FOR LILCO SAID THE COMPANY WOULD ANNOUNCE SUCCESSION PLANS FOR MR EARLEY'S POSITION AT A LATER DATE 9401120010 940112 NUCLEAR TASK FORCE TO FOCUS ON EXPOSURE DEEMED DELIBERATE' WASHINGTON THE CLINTON ADMINISTRATION'S NEW TASK FORCE ON COLD WAR HUMAN EXPERIMENTS WON'T ADDRESS THE SAFETY CONCERNS OF PRESENT AND PAST EMPLOYEES AT NUCLEAR WEAPONS PLANTS OR NUCLEAR TEST SITES AN ENERGY DEPARTMENT OFFICIAL SAID AT A NEWS CONFERENCE MICHAEL GAULDIN THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS SAID THE INTERAGENCY WORKING GROUP AND A RELATED ADVISORY PANEL OF OUTSIDE EXPERTS WOULD FOCUS ONLY ON INTENTIONAL OR DELIBERATE EXPOSURES OF INDIVIDUALS TO RADIATION IN GOVERNMENTFUNDED EXPERIMENTS HE SAID THAT THIS INCLUDES PARTICIPANTS IN HUMAN EXPERIMENTS AS WELL AS INDIVIDUALS EXPOSED TO RADIATION IN SEVERAL TESTS BY THE MILITARY AND THE FORMER ATOMIC ENERGY COMMISSION IN WHICH RADIOACTIVE MATERIAL WAS DELIBERATELY RELEASED INTO THE ATMOSPHERE THE TESTS WHICH OCCURRED DURING THE 1940S AND 1950S IN WASHINGTON OREGON UTAH TENNESSEE AND NEW MEXICO WERE THE SUBJECT OF A RECENT REPORT BY THE GENERAL ACCOUNTING OFFICE MR GAULDIN SAID IT ISN'T CLEAR WHETHER GRIEVANCES OF EXSERVICEMEN WHO PARTICIPATED IN MILITARY TESTS ON THE EFFECTS OF RADIATION WOULD BE ADDRESSED BY THE TASK FORCE BUT HE SAID THAT CLAIMS OF SOCALLED DOWNWINDERS OR INDIVIDUALS WHO LIVE NEAR AREAS WHERE NUCLEAR WEAPONS TESTS HAVE BEEN CONDUCTED WOULDN'T BE CONSIDERED BY THE TASK FORCE A SEPARATE FEDERAL PROGRAM IS ALREADY IN PLACE TO COMPENSATE DOWNWINDERS MR GAULDIN SAID THAT A SURVEY OF 4000 CALLERS TO THE ENERGY DEPARTMENT'S NEW HOTLINE ON HUMAN RADIATION EXPERIMENTS FOUND THAT 22 REPORTED THEY PARTICIPATED AS CIVILIANS IT'S ACTUALLY MUCH LESS THAN WE AT FIRST THOUGHT HE SAID 9401120009 940112 INTERNATIONAL EXHEAD OF BANESTO TO APPEAL MOVE BY BANK OF SPAIN BY CARLTA VITZTHUM AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID THE OUSTED CHAIRMAN OF BANCO ESPANOL DE CREDITO SAID HE PLANS TO APPEAL THE CENTRAL BANK'S DE FACTO TAKEOVER CLAIMING THAT THE BANK OF SPAIN EXAGGERATED THE FINANCIAL PROBLEMS AT BANESTO AS THE BANK IS KNOWN BUT IN WHAT APPEARED TO MARK A FORMAL PARTING OF WAYS JP MORGAN & CO BANESTO'S INVESTMENTBANKING ADVISER ANNOUNCED THAT IT WOULDN'T JOIN THE FORMER OFFICIAL MARIO CONDE IN THE APPEAL WE DON'T INTEND TO JOIN CONDE'S APPEAL OR INITIATE ONE OF OUR OWN A SPOKESMAN FOR JP MORGAN DECLARED WE UNDERSTAND THE BANK OF SPAIN'S ACTION AS A REGULATOR JP MORGAN BECAME ENMESHED IN BANESTO'S DIFFICULTIES BECAUSE OF ITS ROLE IN LEADING A BIG CAPITAL INCREASE FOR THE SPANISH BANK LAST YEAR ITS VICE CHAIRMAN ROBERTO MENDOZA WAS A MEMBER OF MR CONDE'S BOARD IN HIS FIRST PUBLIC STATEMENT SINCE THE BANK OF SPAIN'S DEC 28 MOVE TO TAKE MANAGEMENT CONTROL AT BANESTO MR CONDE TOLD A NEWS CONFERENCE THAT AN INTERNAL ANALYSIS OF BANESTO'S FINANCING NEEDS LAST MONTH HAD PUT THE BANK'S FINANCIAL SHORTFALL AT ONLY 265 BILLION PESETAS 184 BILLION REJECTING A NUMBER OF ELEMENTS IN THE BANK OF SPAIN'S ASSESSMENT HE SAID BANESTO HAD NO NEED AT PRESENT TO MAKE EXTRA PROVISIONS FOR POTENTIAL LOSSES ON ITS INDUSTRIAL PORTFOLIO OR ITS FUTURE PENSION REQUIREMENTS HOWEVER HE OMITTED THAT THE BANK'S ASSESSMENT OF ITS FINANCING NEEDS DRAWN UP IN ASSOCIATION WITH JP MORGAN AND SUBMITTED TO THE CENTRAL BANK ON DEC 23 WAS BASED IN PART ON THE USE OF TAX CREDITS THAT THE BANK WOULD HAVE HAD TO APPLY FOR FROM FISCAL AUTHORITIES WITH NO GUARANTEE THAT IT WOULD GET THEM THE NEW MANAGEMENT TEAM INSTALLED AT BANESTO BY THE BANK OF SPAIN IS EXPECTED SHORTLY TO PUBLISH FIGURES SHOWING A FINANCIAL SHORTFALL AT THE BANK SIGNIFICANTLY IN EXCESS OF THE 503 BILLION PESETAS ESTIMATED LAST MONTH BY THE BANK OF SPAIN MEANTIME MR CONDE FAILED TO CLARIFY A NUMBER OF OTHER QUESTIONS RELATING TO BANESTO'S FINANCES INCLUDING THE STATUS AND PURPOSE OF AN INTERNATIONAL NETWORK OF NONBANKING INTERMEDIARY COMPANIES THAT IS NOW COMING TO LIGHT REPRESENTATIVES OF THE NEW MANAGEMENT TEAM ARE TRYING TO UNRAVEL A WEB OF FINANCIAL TRANSACTIONS ALLEGEDLY USED BY MR CONDE TO PROVIDE ARTIFICIAL SUPPORT FOR THE BANK'S SHARE PRICE 9401120008 940112 HEARD ON THE STREET EVEN ABOVE 3800 A FEW BARGAINS MAY BE LEFT BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL RECORDS RECORDS EVERYWHERE ARE ANY STOCKS STILL CHEAP THAT'S A QUESTION MANY INVESTORS ARE ASKING NOW THAT THE DOW JONES INDUSTRIAL AVERAGE HAS PLOWED THROUGH THE 3800 MARK LIKE A KNIFE THROUGH BUTTER THERE ARE STILL SOME STOCKS ON THE BARGAIN COUNTER INVESTMENT PROFESSIONALS SAY ALBEIT PRECIOUS FEW THE ACCOMPANYING TABLE PREPARED BY MARKETBASE A NEEDHAM MASS INFORMATION FIRM SHOWS TWO DOZEN STOCKS THAT RATE AS CHEAP AT LEAST COMPARED WITH MANY OTHERS IN TODAY'S CLOUDLEVEL MARKET SOME OF THESE STOCKS ARE IN THE DOGHOUSE FOR A VERY GOOD REASON THEY ARE DOGS BUT OVER THE YEARS MANY PROFESSIONAL MONEY MANAGERS HAVE MADE A GOOD LIVING BARGAINHUNTING AMONG OUTOFFAVOR STOCKS STARTING WITH LISTS LIKE THIS UPON SCANNING THE CHEAPSTOCK LIST A FEW MONEY MANAGERS SAID THEY SPIED AT LEAST ONE GEM IN THE ROUGH CYPRUS AMAX MINERALS AN ENGLEWOOD COLO COMPANY THAT MINES COPPER AND OTHER MINERALS SEVERAL MANAGERS ARE KEEPING AN EYE ON THE JANITORIAL COMPANY AMERICAN BUILDING MAINTENANCE AND THE TOYANDGIFT MARKETER RUSS BERRIE THOUGH THEY HOPE TO PICK THEM UP A BIT CHEAPER THE SHARPEST DEBATE IS OVER KMART DEFENDERS LAUD THE CHEAPNESS OF THE RETAILER'S STOCK OPPONENTS ATTACK THE LETHARGY AS THEY SEE IT OF THE MANAGEMENT STOCKS SHOWN IN THE TABLE MET THREE CRITERIA THEY HAVE BEEN TRADING FOR AT MOST 14 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS 15 TIMES BOOK VALUE ASSETS MINUS LIABILITIES PER SHARE AND 10 TIMES SALES PER SHARE STOCKS THAT PASS THIS TRIPLE SCREEN ARE UNUSUALLY CHEAP IN TODAY'S VERY HIGHLY VALUED STOCK MARKET IN NORMAL TIMES HOWEVER SUCH VALUES WOULD LOOK RATHER ORDINARY HERE ARE COMMENTS MONEY MANAGERS OFFERED THIS WEEK ABOUT SOME OF THE NAMES THAT SHOW UP ON THE CHEAPSTOCK LIST CYPRUS AMAX MINERALS A WHIFF OF ECONOMIC RECOVERY AND A WHIFF OF INFLATION SHOULD HELP THIS STOCK IN 1994 SAYS CHRIS BERTELSEN A MANAGER WITH EAGLE ASSET MANAGEMENT IN ST PETERSBURG FLA IT'S COPPER AND GOLD AND A LOT OF DIFFERENT MINERALS A COMMODITY PLAY I'M FAIRLY HIGH ON IT AT TODAY'S PRICES MR BERTELSEN SAYS IT'S CERTAINLY A VERY LOWEXPECTATION STOCK SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IS A CYPRUS FAN TO THE TUNE OF 262000 SHARES CYPRUS IS FINE HE SAYS BUT COPPER PRICES RECENTLY DEPRESSED BY RECESSIONS IN EUROPE AND JAPAN ARE BEYOND ITS CONTROL IF SOMEBODY WANTS TO MAKE THE BET THAT WORLD ECONOMIES ARE COMING BACK THIS IS A SMART WAY TO PLAY IT BECAUSE THEY'RE AN EFFICIENT LOWCOST PRODUCER AMERICAN BUILDING MAINTENANCE THIS ONE PROVIDES A GOOD EXAMPLE OF HOW VALUE MANAGERS OR PROFESSIONAL BARGAIN HUNTERS THINK WHILE OTHER MANAGERS WHO DEAL IN HOT GROWTH STOCKS OFTEN WANT TO BE QUICK ON THE TRIGGER VALUE MANAGERS OFTEN TAKE THEIR TIME RUN THE NUMBERS JUST ONCE MORE AND WAIT FOR A STOCK TO WEAKEN A LITTLE FURTHER BEFORE IT FALLS INTO THEIR CLUTCHES ROLAND WHITRIDGE MANAGER OF BABSON VALUE FUND SAYS HE THINKS AMERICAN BUILDING MAINTENANCE IS AN INTERESTING STOCK IT SEEMS VERY ATTRACTIVE ON THE NUMBERS HE SAYS I JUST HAVEN'T PUT THE CASE TOGETHER TO GO OUT AND WRITE A TICKET ON IT ONE REASON HE HESITATES A LOT OF ITS OPERATIONS ARE IN THE LOS ANGELES AREA WHICH IS STILL QUITE DEPRESSED MR BLACK OF DELPHI ISN'T PULLING THE TRIGGER YET EITHER AMERICAN BUILDING MAINTENANCE SPECIALIZES IN MAINTAINING HIGHRISE OFFICE BUILDINGS HE SAYS THAT'S ONE OF THE SOGGIEST PARTS OF THE REALESTATE REALM TODAY SO REVENUE GROWTH IS VERY SLOW DOES THAT MEAN MR BLACK IS TURNING UP HIS NOSE AT THE STOCK NOT AT ALL THE FUNDAMENTALS ARE DECENT HE SAYS BUT IT'S A LITTLE EXPENSIVE AT 115 TIMES ESTIMATED 1994 EARNINGS IF YOU'RE A 10MULTIPLE MAN LIKE ME YOU'VE GOT TO WAIT FOR THE STOCK PRICE TO SAG A BIT MORE RUSS BERRIE THE OAKLAND NJ MAKER OF TOYS CANDY AND IMPULSE ITEMS RODE HIGH LAST YEAR ON THE STRENGTH OF ITS TROLL DOLLS BUT AS THE LATEST TROLL FAD HAS FADED THE STOCK HAS EBBED 30 TO A CLOSING PRICE YESTERDAY OF 13 7/8 DOWN 1/8 RUSS BERRIE IS A STOCK THAT YOU CAN MAKE MONEY ON IF YOU BUY IT RIGHT SAYS MARK BOYAR OF BOYAR ASSET MANAGEMENT IN NEW YORK YOU CAN BUY IT IN THE LOW TEENS THAT OPPORTUNITY COMES ALONG ONCE EVERY COUPLE OF YEARS MR BOYAR SAYS HE SOLD THE STOCK IN THE MID20S BECAUSE IT HIT OUR TARGET DURING THE TROLL MANIA NOW THAT THE STOCK IS DOWN TO 14 IT'S ONCE AGAIN INTERESTING HE SAYS THOUGH HE HASN'T BOUGHT IT YET THE COMPANY HE SAYS HAS A WONDERFUL DISTRIBUTION NETWORK WITH SOME 800 SALESPEOPLE WHO CALL ON CARD SHOPS GIFT SHOPS AND OTHER RETAILERS RUSS BERRIE IS TOO SMALL FOR INCLUSION IN HER INSTITUTIONAL PORTFOLIOS SAY LOIS BURLEIGH DIRECTOR OF EQUITY INVESTMENTS AT ASB CAPITAL MANAGEMENT AN INSTITUTIONAL MONEY MANAGER IN WASHINGTON BUT SHE SAYS I AM PLANNING TO TAKE A LOOK AT IT FOR MY OWN PORTFOLIO GUILFORD MILLS DAVID KATZ CHIEF INVESTMENT OFFICER AT MATRIX ASSET ADVISORS IN NEW YORK IS KEEPING A CLOSE WATCH ON GUILFORD MILLS THE GREENSBORO NC TEXTILE MAKER THE STOCK IS DOWN ABOUT FIVE POINTS FROM ITS HIGH PARTLY BECAUSE THERE WERE NO STRONG FASHION TRENDS THIS YEAR MR KATZ SAYS IF IT CAME DOWN TO 19 WE WOULD HAVE AN INTEREST GUILFORD SHARES CLOSED YESTERDAY AT 23 1/2 UP 1/8 KMART THE TROY MICH RETAILER GENERATED THE MOST VIGOROUS ARGUMENTS OF ANY STOCK ON THE LIST WE JUST STARTED BUYING IT THIS WEEK SAYS MR KATZ THE ANALYST COMMUNITY HAS GIVEN UP ON THE COMPANY IT IS SELLING FOR LESS THAN 10 TIMES NORMALIZED EARNINGS AND YOU GET PAID A 48 DIVIDEND YIELD WHILE YOU WAIT MS BURLEIGH OF ASB CALLS KMART SHARES DIRT CHEAP ASB ALREADY OWNS SOME AND SHE SAYS SHE MAY ADD TO THE POSITION THE STOCK WAS AT 20 UNCHANGED YESTERDAY SHE THINKS A REALISTIC TARGET WOULD BE THE HIGH 20S BUT OTHERS SAY THEY WOULDN'T TOUCH THE STOCK NICE PEOPLE GREAT ART COLLECTION IN THE CORPORATE OFFICES BUT SAYS ONE MONEY MANAGER I HATE KMART SAYS MR BERTELSEN OF EAGLE ASSET MANAGEMENT THEY ARE GETTING BEATEN UP AT THE HIGH END BY JC PENNEY AT THE LOW END BY CALDOR AND IN THE MIDDLE BY SEARS HE SAYS AND THEY CERTAINLY CAN'T MATCH WALMART IN THE LOWPRICE STORE WARS THEY HAVE TO GET A GRIP ON WHAT THEY'RE TRYING TO DO 9401120007 940112 ADVERTISING EVERYBODY'S AFRAID OF THE BIG BAD BOSS BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL HOME IS WHERE THE HEART IS BUT THE WORKPLACE JUDGING FROM A SLEW OF RECENT COMMERCIALS IS WHERE THE HEARTBURN IS MADISON AVENUE IS INCREASINGLY PORTRAYING THE OFFICE AS HELL ON EARTH POPULATED BY SCREAMING BOSSES WHO RELENTLESSLY PILE THE WORK ON THEIR SUFFERING EMPLOYEES ADVERTISERS ALSO ARE CASTING EMPLOYEES IN THE ROLE OF FEARFUL UNDERLINGS WHO ARE AFRAID TO TAKE A SICK DAY SOME COMPANIES EVEN MENTION THE DREADED PHRASE LAID OFF IN THEIR COMMERCIALS HOW TIMES HAVE CHANGED IN COMMERCIALS HEADACHES USED TO ORIGINATE AT HOME WITH SCREAMING KIDS AND BURNED POT ROAST PROBLEMS AT THE OFFICE IN ADS WERE CONFINED TO HARMLESS MALADIES SUCH AS BAD BREATH AND DANDRUFF NOWADAYS COMMERCIALS HAVE EMPLOYEES ON THE EDGE ONE SOLUTION TO THEIR ANXIETY OF COURSE IS THE PRODUCT BEING ADVERTISED FOR EXAMPLE COMMERCIALS FOR CONTAC A PRODUCT FROM SMITHKLINE BEECHAM SHOW A CONSTRUCTION WORKER SLOGGING THROUGH A SOAKING RAIN IN A VOICEOVER HE SAYS HOW HE NEEDED TO TAKE THE COLD MEDICINE IN ORDER TO GET TO WORK CONTAC HE SAYS WILL TAKE YOU THROUGH THE WHOLE DAY HE ADDS NO WORK NO PAY FORTUNE MAGAZINE PUBLISHED BY TIME WARNER TAKES THE JOBANXIETY FACTOR TO NEW HEIGHTS WHAT'S WORSE GETTING LAID OFF ON FRIDAY OR BEING TOLD TO PICK UP THE SLACK ON MONDAY ASKS A PRINT AD SHOWING A DAZED BALDING YUPPIE MARKETING EXPERTS SAY THEY BELIEVE THE TACTIC IS EFFECTIVE BECAUSE THERE IS SO MUCH JOB INSECURITY AMONG BOTH WHITECOLLAR AND BLUECOLLAR WORKERS IT'S PRETTY CLEAR THAT PEOPLE ARE SURROUNDED BY OTHERS WHO ARE LAID OFF SAYS CAROL MOOG A PSYCHOLOGIST AND ADVERTISING CONSULTANT AT CREATIVE FOCUS IN BALA CYNWYD PA AND THE ADS REFLECT FEELINGS THAT YOU CAN'T TAKE A CHANCE OF HAVING A BOSS GET MAD AT YOU THAT'S HOW GREAT THE PRESSURE IS THESE DAYS INDEED THE CONTAC SPOT FROM GREY ADVERTISING WAS COMMISSIONED AFTER INTERVIEWS WITH ABOUT 800 CONSUMERS REVEALED HOW UNEASY THEY ARE IN THEIR JOBS THE WORRY IS THAT IF I DON'T GO TO WORK I WON'T GET PAID AND THERE ARE PLENTY OF PEOPLE STANDING IN LINE WAITING TO DO MY JOB SAYS BARBARA FEIGIN AN EXECUTIVE VICE PRESIDENT AT GREY WE'RE BUILDING THE CAMPAIGN ON REAL HUMAN INSIGHTS DAVID NIMZ PROMOTION DIRECTOR AT FORTUNE SAYS THE MAGAZINE CHOSE ITS STARK WORKSITUATION STRATEGY BECAUSE THE WORKPLACE IS GOING THROUGH A REVOLUTION AS DRAMATIC AS THE INDUSTRIAL REVOLUTION YEARS AGO I DON'T KNOW ANYONE WHO HASN'T HAD THE THOUGHTS WE USE IN OUR ADS IS IT A DOWNER IT'S REALITY I LOOK AT THESE ADS HE SAYS AND WONDER AM I STUPID BECAUSE MY RESUME ISN'T IN ORDER PEOPLE USED TO THINK THEY WERE IMMUNE TO LAYOFFS NO LONGER BUT THERE'S A RISK OF SCARING THE CONSUMER TOO MUCH YOU CAN RAISE THE ANXIETY LEVEL SO FAR IN ADS BY RESONATING PEOPLE'S REAL FEARS DR MOOG SAYS BUT IF YOU RAISE IT TOO FAR THE MESSAGE GETS OVERWHELMED BY SHOWING PEOPLE CRINGING IT COULD KNOCK OUT THE CONSUMER'S ABILITY TO REGISTER THE MESSAGE YOU'RE TRYING TO SEND WHICH AFTER ALL IS BUY OUR PRODUCT PERHAPS THAT IS WHY SOME COMPANIES CHOOSE TO LACE THEIR MESSAGES WITH HUMOR OR HAVE A HAPPY ENDING A COMMERCIAL FOR FEDERAL EXPRESS FOR INSTANCE SHOWS A FEMALE EMPLOYEE BERATED BY HER IMPOSING BOSS INQUIRING ABOUT THE WHEREABOUTS OF A PACKAGE WITH BARELY A SMIRK SHE FINDS ITS LOCATION THE TIME IT WAS DELIVERED AND WHO SIGNED FOR IT THE BLOWHARD BOSS WALKS BRISKLY AWAY HER FELLOW WORKERS WHO WITNESS THIS VERBAL ONSLAUGHT BEGIN APPLAUDING WILDLY AS SHE STANDS UP AND TAKES HER BOW A MCDONALD'S COMMERCIAL SHOWS A MAN BUYING HIS BREAKFAST AT A DRIVEIN WINDOW SO HE CAN GET TO WORK FAST AS THE EMPLOYEE IS ABOUT TO BITE INTO HIS FOOD HE HEARS HIS BOSS SHRIEKING FOR HIM THE POOR SOUL CRINGES MEEKLY AS AN ANNOUNCER ASKS THEN AGAIN WHY ARE YOU IN A HURRY TO GET TO WORK PEOPLE HAVE A LOVEHATE RELATIONSHIP WITH THEIR JOBS AND THE MCDONALD'S COMMERCIALS REFLECT THAT SAYS CHERYL BERMAN EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT LEO BURNETT MCDONALD'S AD AGENCY WE LOOK FOR UNIVERSAL SITUATIONS FOR OUR SPOTS AND EVERYONE HAS BEEN IN THAT SITUATION AND MANY OF THOSE SITUATIONS HAVE BEEN PORTRAYED IN ADS FOR ROBITUSSIN LIQUIGELS COLD FORMULA FROM AH ROBINS'S CONSUMER PRODUCTS DIVISION A WORKER SUFFERING A COLD IS TRYING IN VAIN TO GET THROUGH A PILE OF PAPERWORK WHEN SHE TAKES THE ROBITUSSIN SHE FEELS BETTER AND SUCCESSFULLY TACKLES HER WORK ONLY TO HAVE HER BOSS APPEAR AND DUMP MORE PAPERS FOR HER TO GO THROUGH A SPOKESWOMAN FOR AH ROBINS SAYS THE SCENE DEPICTS NOT AN UNPLEASANT WORKPLACE BUT ONE THAT IS BUSY THE WORKER HAS A BEMUSED LOOK ON HER FACE WHEN SHE GETS MORE WORK SAYS THE SPOKESWOMAN SOME ADS SHOW WORKERS IN BLEAK SURROUNDINGS FOR INSTANCE A SPOT FOR DANNON YOGURT HAS A BLACKANDWHITE SCREEN EXPLODE IN RICH COLORS WHEN AN EMPLOYEE LEAVES HER OFFICE FOR LUNCH WHEN SHE RETURNS TO WORK THE SCREEN RETURNS TO BLACK AND WHITE AGENCIES ARE FINALLY BEGINNING TO UNDERSTAND THEIR CUSTOMERS AND NOT JUST SELLING PRODUCT WITH A CUTE MESSAGE SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES A MARKETING AND ADVERTISING CONSULTING FIRM IN GUILFORD CONN INSTEAD THEY'RE POSITIONING THE BENEFITS OF USING THE PRODUCTS BUY THIS AND YOU WON'T STAY HOME FROM WORK ACCOUNT BAKERS SQUARE RESTAURANTS A UNIT OF VICORP RESTAURANTS INC MOVED ITS AD ACCOUNT FROM THE CHICAGO OFFICE OF SAATCHI & SAATCHI'S CME KHBB TO CHICAGO AGENCY TATHAM EURO RSCG BILLINGS ARE ABOUT 8 MILLION ACCORDING TO INDUSTRY ESTIMATES 9401120005 940112 TECHNOLOGY & ENVIRONMENT ORGANIZED LABOR WILL PUSH FOR PASSAGE OF HEALTHCARE BILL KIRKLAND SAYS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORGANIZED LABOR WILL PUT ASIDE ITS BITTERNESS TOWARD THE WHITE HOUSE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND WAGE AN ALLOUT EFFORT TO WIN PASSAGE OF PRESIDENT CLINTON'S HEALTHCARE BILL AFLCIO PRESIDENT LANE KIRKLAND SAID I KNOW OF NO ISSUE THAT IS MORE IMPORTANT RIGHT NOW TO THE FUTURE OF THE COUNTRY THE 73YEAROLD UNION LEADER TOLD A SMALL GROUP OF REPORTERS OVER COFFEE IN HIS OFFICE HERE THE SUCCESSFUL ENACTMENT OF A GOOD HEALTHCARE PROGRAM WILL AFFECT EVERY ISSUE IN THIS COUNTRY FROM SAFE STREETS TO THE GENERAL WELFARE OF THE POPULATION TO INTERNATIONAL COMPETITIVENESS WHITE HOUSE OFFICIALS HAILED HIS REMARKS THIS IS A HUGE STEP TOWARD BUILDING THE COALITION THAT IS NEEDED TO INSURE HEALTH SECURITY FOR EVERY AMERICAN SAID ROBERT BOORSTIN A SPOKESMAN FOR THE ADMINISTRATION'S HEALTHCARE CAMPAIGN WE ARE PARTICULARLY PLEASED THAT THE UNIONS MANY OF WHICH HAVE EXCELLENT HEALTH BENEFITS RECOGNIZE HOW GOOD OUR PLAN IS ONLY TWO OF THE MAJOR PENDING HEALTHCARE PROPOSALS MEET THE AFLCIO'S CRITERIA MR KIRKLAND SAID THE CLINTON BILL WHICH WOULD REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF A COMPREHENSIVE HEALTHBENEFITS PACKAGE FOR EACH WORKER AND A PLAN ESTABLISHING A TAXPAYERFINANCED SYSTEM WHERE THE GOVERNMENT PAYS EVERYONE'S MEDICAL BILLS WHILE UNIONS PREFER THE LATTER MR KIRKLAND SAID THAT THE PRESIDENT'S PLAN HAS A FAR GREATER CHANCE OF PASSING CONGRESS CONSEQUENTLY HE SAID UNIONS WILL BE KEY ACTIVE AGGRESSIVE PLAYERS IN PUSHING FOR PASSAGE OF THE PRESIDENT'S BILL THIS YEAR MR KIRKLAND'S COMMENTS CAME AS A HUGE RELIEF TO THE WHITE HOUSE WHICH FOUGHT FIERCELY WITH THE AFLCIO OVER THE TRADE AGREEMENT LAST FALL UNTIL THE FALLOUT OVER THE TRADE PACT UNIONS HAD BEEN AMONG THE PRESIDENT'S MOST VOCAL SUPPORTERS ON HEALTH CARE BUT AFTER MR CLINTON WON CONGRESSIONAL APPROVAL OF NAFTA OVER THE LABOR FEDERATION'S OPPOSITION MANY UNIONS BEGAN EQUIVOCATING THE EXTENT OF THEIR COOPERATION WITH THE ADMINISTRATION ON HEALTH CARE YESTERDAY MR KIRKLAND SAID THE AFLCIO AND ITS 86 AFFILIATED UNIONS STILL FEEL A LINGERING PAIN OVER NAFTA BUT HE SAID THAT MAKES IT ALL THE MORE ESSENTIAL I BELIEVE THAT WE DETACH HEALTH CARE FROM THIS CONCERN BUT WHILE THE AFL'S NATIONAL LEADERSHIP HAS SOME CLOUT AND INFLUENCE OVER ITS AFFILIATES IN THE END IT IS THE FUNDING AND FIELDWORK OF THE INDIVIDUAL UNIONS ACROSS THE COUNTRY THAT DETERMINE HOW SUCCESSFUL A LABOR CAMPAIGN IS THERE WERE INDICATIONS THAT STATE AND LOCAL LEADERS TOO WERE DETERMINED NOT TO LET THEIR ANGER OVER NAFTA STAND IN THE WAY OF HEALTH CARE FRANK GARRISON PRESIDENT OF THE MICHIGAN AFLCIO WHICH WAGED ONE OF THE MOST AGGRESSIVE ANTINAFTA CAMPAIGNS IN THE COUNTRY SAID IN AN INTERVIEW YESTERDAY THERE'S NOTHING WE WON'T DO TO PASS HEALTH CARE WHILE UNIONS WERE CLIMBING ON THE HEALTH BANDWAGON NEW YORK'S DEMOCRATIC GOVERNOR MARIO CUOMO WAS RAISING QUESTIONS ABOUT IT MR CUOMO HAS WRITTEN A LETTER TO ALL OF THE STATE'S EMPLOYEES SAYING THE WHITE HOUSE HEALTH BILL WOULD DISMANTLE AND UNDERMINE NEW YORK STATE'S PUBLIC EMPLOYEE HEALTH PLAN THE CLINTON PLAN CAPS THE AMOUNT OF MONEY PRIVATE EMPLOYERS WILL HAVE TO SPEND ON HEALTH CARE AT 79 OF PAYROLL BUT PROVIDES NO SUCH LIMIT ON PUBLIC EMPLOYERS' HEALTH SPENDING THAT WOULD CREATE A THREAT OF POTENTIAL REDUCTION IN HARDWON BENEFITS AND INCREASED COSTS FOR THE STATE FOR YOU AND YOUR FAMILY MR CUOMO WROTE THE LETTER WAS REPORTED IN TUESDAY'S EDITIONS OF THE NEW YORK TIMES 9401120004 940112 CREDIT RATINGS BANK OF IRELAND DUBLIN MOODY'S INVESTORS SERVICE INC UPGRADED BANK OF IRELAND'S RATINGS FOR SENIOR DEBT AND LONGTERM DEPOSITS TO SINGLEA1 FROM SINGLEA2 AFFECTING 780 MILLION IN DEBT THE RATING REFLECTS THE IMPROVEMENT IN BANK OF IRELAND'S ASSET QUALITY AND CORE PROFITABILITY MOODY'S SAID THE OUTLOOK FOR BUSINESS DEVELOPMENT IN THE RETAIL SEGMENT SHOULD FURTHER STRENGTHEN THE BANK'S POSITION THE RATING SERVICE ADDED ITEL CORP CHICAGO MOODY'S INVESTORS SERVICE INC SAID IT RAISED THE SENIOR SUBORDINATED DEBT RATINGS OF THIS COMPANY TO SINGLEB2 FROM SINGLEB3 THE MOVE AFFECTS ABOUT 2675 MILLION OF DEBT THE RATING AGENCY ATTRIBUTED ITS ACTION PARTLY TO A MORE FAVORABLE OUTLOOK FOR ITEL'S CORE BUSINESSES THE DISTRIBUTION OF WIRING AND OTHER DATA TRANSMISSION PRODUCTS FOR TELECOMMUNICATIONS MARKETS MAXUS ENERGY CORP DALLAS STANDARD & POOR'S CORP SAID IT ASSIGNED A DOUBLEB RATING TO THIS ENERGY CONCERN'S 60 MILLION SENIOR NOTES DUE 2003 AND PLACED THE NOTES ON CREDITWATCH WITH NEGATIVE IMPLICATIONS S&P ALSO SAID IT PLACED MAXUS'S DOUBLEB SENIOR AND SENIOR BPLUS PREFERRED STOCK ON CREDITWATCH WITH NEGATIVE IMPLICATIONS ABOUT 14 BILLION OF DEBT AND PREFERRED IS AFFECTED S&P SAID THE CREDITWATCH PLACEMENT REFLECTS ITS CONCERN OVER THE IMPACT OF DEPRESSED OIL PRICES ON MAXUS'S ALREADYWEAK BALANCE SHEET S&P SAID MAXUS'S CASH FLOW IS NOT EXPECTED TO COVER NEARTERM CAPITAL SPENDING AND FIXED CHARGES AND ACCESS TO CAPITAL MARKETS WILL BE NEEDED FOR FUNDING REQUIREMENTS MAXUS COULDN'T BE REACHED FOR COMMENT 9401120003 940112 GM TRUCK SITE IN LOUISIANA HIT BY UAW STRIKE DRIVE TO BOOST PRODUCTIVITY SPARKS WALKOUT PLANT IN CONNECTICUT TO SHUT BY NEAL TEMPLIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT THE UNITED AUTO WORKERS STRUCK GENERAL MOTORS CORP'S PICKUPTRUCK PLANT IN SHREVEPORT LA IN A CLASH OVER GM'S CAMPAIGN TO BOOST PRODUCTIVITY IN ADDITION THE AUTO MAKER SAID IT WILL SHUT A PARTS PLANT IN CONNECTICUT AND PUT A FACTORY IN OHIO ON THREEYEAR PROBATION THE SHREVEPORT STRIKE AND GM'S DECISION TO SHUTTER ITS 105YEAROLD BRISTOL CONN BEARING FACTORY UNDERSCORE THE PAIN THE NO 1 AUTO MAKER FACES AS IT STRAINS TO MAKE GOOD ON PRESIDENT JOHN F SMITH JR'S PROMISE TO MAKE NORTH AMERICAN OPERATIONS PROFITABLE THIS YEAR GM HAS LOST MORE THAN 17 BILLION IN ITS CORE DOMESTIC BUSINESS NOT COUNTING RETIREE MEDICAL CHARGES SINCE JANUARY 1990 EARLIER THIS WEEK STEPHEN P YOKICH THE UAW'S TOP GM NEGOTIATOR WARNED HE COULD USE A STRIKE AT SHREVEPORT AS A SHOT ACROSS THE BOW TO WARN THE COMPANY AGAINST TRYING TO MOVE TOO FAR TOO FAST IN ITS CRUSADE TO SLASH LABOR COSTS THE SHREVEPORT FACTORY WHICH EMPLOYS 2300 HOURLY WORKERS IS THE SOLE SOURCE OF TWO HOTSELLING GM COMPACT PICKUP TRUCKS THE CHEVROLET S10 AND GMC SONOMA ANALYSTS SAID THE STRIKE COULD COST GM BETWEEN 2 MILLION AND 3 MILLION A DAY BUT GM HAS ADEQUATE INVENTORY OF THE NEW MODELS FOR NOW MR YOKICH SAID HE MAY TURN UP THE PRESSURE NEXT ON GM'S PARTSMAKING OPERATIONS WHICH ARE SCRAMBLING TO COMPETE WITH RIVALS WITH LOW LABOR COSTS SOME 20 OF GM'S REMAINING PARTS OPERATIONS COULD FACE SHUTDOWN OR SALE IF THEY DON'T BECOME PROFITABLE BY THE END OF THIS YEAR GM'S DRIVE TO CLOSE ITS LABORPRODUCTIVITY GAP WITH RIVAL FORD MOTOR CO COULD MEAN MORE BAD NEWS FOR PLANTS LIKE THE BRISTOL FACILITY WHERE GM WILL ELIMINATE 536 JOBS BY THE END OF THIS YEAR THEY'RE SAYING WE STARVED YOU TO DEATH NOW WE'LL CLOSE THE COFFIN' SAID ROGER CHASSE PRESIDENT OF THE BRISTOL UAW LOCAL AN ADDITIONAL 1500 JOBS AT A BEARING PLANT IN SANDUSKY OHIO COULD BE LOST WITHIN THREE YEARS UNLESS THE UAW AND MANAGEMENT COOPERATE TO MAKE THE BUSINESSES THERE COMPETITIVE NEGOTIATIONS FOR A NEW LOCAL CONTRACT AT SANDUSKY ARE CONTINUING A GM SPOKESMAN SAID SEPARATELY A SMALL 150WORKER BEARING PLANT IN CADIZ SPAIN WILL SHUT IN 1995 AS PLANNED GM SAID IT DECIDED TO SHUT THE BRISTOL AND CADIZ PLANTS AFTER FAILING TO FIND A BUYER FOR ITS WORLDWIDE BEARING BUSINESS DURING A SEARCH THAT BEGAN IN AUGUST 1992 A BID BY BRISTOL WORKERS TO BUY THEIR PLANT WAS REJECTED MR CHASSE SAID WHETHER GM CAN AVOID A COSTLY BATTLE OVER PRODUCTIVITY COULD DEPEND ON WHETHER MR SMITH AND MR YOKICH CAN USE THEIR PERSONAL RAPPORT AS THE FOUNDATION FOR A SETTLEMENT MR YOKICH IS GENEROUS IN HIS PRAISE FOR MR SMITH THE GM PRESIDENT IN TURN IS TRYING TO KEEP MR YOKICH BETTER INFORMED THAN IN THE PAST ABOUT GM'S RESTRUCTURING MOVES AND HAS SOLICITED THE UAW OFFICIAL'S IDEAS FOR IMPROVING GM OPERATIONS THE SHREVEPORT STRIKE PROBABLY WON'T MAKE A MAJOR DENT IN GM'S IMPROVING FINANCIAL RESULTS SAID ANALYST WENDY NEEDHAM OF SMITH BARNEY SHEARSON WHO EXPECTS GM TO POST PROFITS IN EXCESS OF 1 BILLION FOR THE FOURTH QUARTER AS WELL AS FOR THE FIRST QUARTER BUT THE RISK OF RUNNING SHORT OF A HOTSELLING MODEL CLEARLY MAKES GM EXECUTIVES NERVOUS WE CAN'T KEEP UP WITH DEMAND FOR THE '94 SONOMA SMALL PICKUP SAID ROY S ROBERTS VICE PRESIDENT IN CHARGE OF THE GMC TRUCK MARKETING DIVISION WE'VE TAKEN MORE ORDERS FOR IT IN THE LAST SIX MONTHS THAN WE SOLD ALL OF LAST YEAR HOPEFULLY SANITY WILL PREVAIL AND WE CAN CONTINUE TO PRODUCE GREAT TRUCKS FOR A HOT MARKET 9401120002 940112 CORRECTIONS & AMPLIFICATIONS MEXICAN STOCKS FELL ON MONDAY BY THE BIGGEST AMOUNT IN MORE THAN FOUR YEARS VOLUME WAS 1339 MILLION SHARES AN ARTICLE YESTERDAY SAID INCORRECTLY THAT THE DECLINE WAS THE MARKET'S BIGGEST EVER AND IT MISSTATED VOLUME AT 26 MILLION SHARES THE MUTUAL FUND SCORECARD IN MONDAY'S EDITION CONSISTED OF GINNIE MAE FUNDS THE TABLE WAS INCORRECTLY IDENTIFIED AS SECTOR FUNDS DUE TO A COMPUTER PROGRAMMING ERROR WHEN RODMAN & RENSHAW CAPITAL GROUP INC'S FORMER CHAIRMAN KURT KARMIN CEDED THE CHIEF EXECUTIVE OFFICER'S POST TO ANOTHER COMPANY OFFICIAL IN NOVEMBER THE ACTION WASN'T PART OF AN ACQUISITION AGREEMENT BY WHICH ABACO GRUPO FINANCIERO SA DE CV SUBSEQUENTLY ACQUIRED A 51 STAKE IN THE BROKERAGE HOUSE AN ARTICLE YESTERDAY INCORRECTLY SAID THE TWO DEVELOPMENTS WERE LINKED THE NEW BLUE CHIP ECONOMIC INDICATORS FORECAST THAT THE US ECONOMY WILL GROW 3 IN 1994 AFTER INFLATION IS ONETENTH OF A PERCENTAGE POINT HIGHER THAN LAST MONTH'S NOT A PERCENTAGE POINT HIGHER AS REPORTED IN AN ARTICLE YESTERDAY WAUSAU PAPER MILLS CO'S STOCK CLOSED AT 31 1/2 IN MONDAY'S NASDAQ TRADING UP 3/4 OR 24 AFTER ADJUSTING FOR THE RECENTLY DISTRIBUTED 4FOR3 STOCK SPLIT THE COMPANY WAS INCORRECTLY LISTED AS A PRICE PERCENTAGE LOSER IN YESTERDAY'S EDITION BECAUSE OF A DATABASE ERROR 9401120001 940112 LAW LEGAL BEAT PERSONALBANKRUPTCY BAR ATTACKS LOWCOST SERVICES BY PARALEGALS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL PERSONAL BANKRUPTCIES ALMOST NEVER ASSUME THE DIMENSIONS OF CORPORATE REORGANIZATIONS BUT THEY ARE BIG BUSINESS NONETHELESS AND LAWYERS ARE NOW BATTLING SOME UPSTART COMPETITORS FOR THE PROFITS MOST OF THE COMPETITORS ARE PARALEGALS WHO FILL OUT BANKRUPTCY FORMS AT CUTRATE PRICES WHERE AN ATTORNEY GENERALLY WOULD CHARGE UPWARD OF 1100 FOR A SOCALLED CHAPTER 13 PERSONALBANKRUPTCY PETITION A PARALEGAL'S FEES MIGHT START AT 200 PEOPLE IN THE FIELD ESTIMATE THAT HUNDREDS OF SUCH DISCOUNT SERVICES EXIST ALTHOUGH NO ONE IS SURE OF THE PRECISE NUMBER IT'S CLEAR THAT THE BUSINESS HAS EXPANDED RAPIDLY AS THE NUMBER OF PERSONAL BANKRUPTCIES HAS CLIMBED FACED WITH SUCH PRICE COMPETITION THE BANKRUPTCY BAR HAS LAUNCHED A COUNTERATTACK THAT INCLUDES LOBBYING FOR LEGISLATION ON CAPITOL HILL AND PARALEGALS CLAIM MOUNTING FRIVOLOUS LEGAL CHALLENGES TO PARALEGALS' FEES IN INDIVIDUAL CASES SPECIFICALLY THE PARALEGALS SAY BANKRUPTCY TRUSTEES WHO MONITOR ALL CASES AND OFTEN DOUBLE AS PRACTICING BANKRUPTCY LAWYERS ARE FREQUENTLY FILING FEE CHALLENGES AS A FORM OF HARASSMENT IN A MOTION FILED LAST YEAR IN FLORIDA A TRUSTEE CONTENDED THAT PARALEGALS WHO ARE NOT LAWYERS SHOULD GET PAID ONLY FOR THE TYPING AND PHOTOCOPYING THEY DO WHEN FILLING OUT BANKRUPTCY FORMS THAT LEVEL OF WORK THE TRUSTEE SAID WAS WORTH ABOUT HALF THE 300 THAT A PARALEGAL CHARGED IF THE PARALEGAL DID ANYTHING MORE THAN MERE TYPING THE TRUSTEE SAID THE PARALEGAL ENGAGED IN UNAUTHORIZED PRACTICE OF LAW WHICH CAN TRIGGER FINES JAIL TIME AND AN INJUNCTION SHUTTING DOWN THE BUSINESS THE TRUSTEE MIAMI ATTORNEY ROBERT L ROTH SAYS HE SCRUTINIZES FEES OF ATTORNEYS AS WELL AS PARALEGALS UNSCRUPULOUS PARALEGALS SOLICIT PEOPLE WHO ARE BEING THREATENED WITH FORECLOSURE HE SAYS ADVERTISING LOW RATES BUT ULTIMATELY CHARGING THOUSANDS OF DOLLARS ONE PARALEGAL IN HIS AREA IS EVEN A DISBARRED NEW YORK ATTORNEY HE SAYS THERE'S NO NATIONWIDE MOVEMENT THERE'S BEEN NO TALK AT ANY OF OUR CONVENTIONS OF GOING AFTER PARALEGALS MR ROTH SAYS THERE'S BEEN TALK OF UNAUTHORIZED PRACTICE OF LAW THERE'S BEEN TALK OF THE DAMAGE DONE BUT LEGALCONSUMER GROUPS SUCH AS WASHINGTONBASED HALT SAY SUCH A CAMPAIGN EXISTS SAN FRANCISCO PARALEGAL ALLAN H ROSENTHAL A BOARD MEMBER OF THE CALIFORNIA ASSOCIATION OF INDEPENDENT PARALEGALS SAYS TRUSTEES STARTED CHALLENGING PARALEGAL FEES AFTER A 1992 ARTICLE ABOUT THE TACTIC IN AN INDUSTRY TRADE PUBLICATION THE CLIENTS ARE NOT CLAMORING FOR THIS RELIEF HE SAYS AND THE VAST VAST MAJORITY OF PARALEGALPREPARED BANKRUPTCIES GO WITHOUT A HITCH HE SAYS IN CALIFORNIA EVEN AN ATTORNEYAFFILIATED LEGAL SERVICE HAS RUN AFOUL OF A BANKRUPTCY TRUSTEE AT ATTORNEY ASSISTED LEGAL CENTERS A 20OFFICE CHAIN BASED IN TORRANCE PARALEGALS INTERVIEW CLIENTS TAKE MESSAGES FROM CREDITORS DRAW UP DOCUMENTS AND DELIVER THEM TO THE COURTHOUSE ATTORNEYS ARE ON HAND TO ANSWER TACTICAL QUESTIONS BANKRUPTCY TRUSTEE AND SAN DIEGO LAWYER GERALD H DAVIS SAID IN A RECENT CASE THAT THE CHAIN SHOULD CHARGE ONLY 25 AN HOUR THE COST OF SIMPLY TYPING UP FORMS YOU'RE EITHER AN ATTORNEY OR YOU'RE NOT AN ATTORNEY HE SAID YOU CAN'T BE BOTH THE CHAIN WHICH CHARGES ABOUT 300 FOR A SIMPLE BANKRUPTCY IS CONTESTING MR DAVIS'S MOTION SKIRMISHES BETWEEN ATTORNEYS AND ALTERNATIVE LEGAL SERVICES ARE PLAYING OUT IN OTHER AREAS OF LAW TOO BUT THE BANKRUPTCY BAR IS ESPECIALLY AGGRESSIVE GROUPS IN OTHER FIELDS THAT DO WORK SUCH AS THAT PERFORMED BY ATTORNEY ASSISTED LEGAL CENTERS FOR INSTANCE HAVE FOUND SUPPORT FROM ATTORNEY TRADE ASSOCIATIONS ON CAPITOL HILL MEANWHILE THE NATIONAL ASSOCIATION OF CONSUMER BANKRUPTCY ATTORNEYS IS PUSHING LEGISLATION THAT WOULD ESSENTIALLY PUT BANKRUPTCYRELATED PARALEGAL SERVICES OUT OF BUSINESS THE MCLEAN VA TRADE ASSOCIATION WANTS BANKRUPTCY LAWS CHANGED TO PROHIBIT PARALEGALS FROM GETTING PAID FOR ANY SERVICE OTHER THAN TYPING THE PROPOSED LEGISLATION ALSO WOULD BAR PARALEGALS FROM AMONG OTHER THINGS USING LEGAL OR PARALEGAL IN THEIR COMPANY NAMES CONSUMERDEBTOR ATTORNEYS HAVE A PREDISPOSITION TO WANT TO PROTECT PEOPLE SAYS IKE SHULMAN THE LOBBYING GROUP'S PRESIDENT HE ADDS THAT CONSUMERS SHOULD REALIZE THEY CAN PAY BANKRUPTCYATTORNEY FEES IN INSTALLMENTS THE UNAFFORDABILITY OF LAWYERS THAT DOESN'T APPLY IN BANKRUPTCY HE SAYS THE LEGISLATION WHICH WAS INTRODUCED LAST YEAR IS EXPECTED TO BE PURSUED AGGRESSIVELY WHEN CONGRESS RECONVENES A FEDERAL JUDGE FOUND USAIR NEGLIGENT IN A 1992 JET CRASH THAT KILLED 27 PEOPLE AT NEW YORK'S LA GUARDIA AIRPORT EARLY LAST YEAR FEDERAL INVESTIGATORS CONCLUDED THAT THE CREW ON USAIR'S FLIGHT 405 TO CLEVELAND FAILED TO DETECT ICE ON THE WINGS CAUSING THE AIRCRAFT TO LOSE CONTROL QUICKLY AND PLUNGE INTO FRIGID WATERS DURING A FAILED TAKEOFF FROM LA GUARDIA SIX WEEKS INTO A TRIAL BROUGHT BY SURVIVORS OF THE CRASH AND FAMILIES OF PEOPLE WHO DIED US DISTRICT JUDGE THOMAS LAMBROS IN CLEVELAND ISSUED A DIRECTED VERDICT AGAINST USAIR A UNIT OF USAIR GROUP INC OF ARLINGTON VA THE RULING MEANS THE PLAINTIFFS CAN BE AWARDED COMPENSATORY DAMAGES THE AMOUNT OF EACH AWARD WILL BE DETERMINED INDIVIDUALLY LATER A USAIR SPOKESMAN SAID THE COMPANY DOESN'T PLAN TO APPEAL THE VERDICT WE HAVE ALWAYS MAINTAINED THAT WE ARE RESPONSIBLE FOR REASONABLE COMPENSATORY DAMAGES HE SAID BECAUSE THE ACTIONS OF THE EMPLOYEES WERE INCORRECT THE JURY IN THE TRIAL WILL NOW BEGIN CONSIDERING WHETHER TO AWARD PUNITIVE DAMAGES TO THE PLAINTIFFS IN JULY 1992 A FEW MONTHS AFTER THE USAIR CRASH THE FEDERAL AVIATION ADMINISTRATION ISSUED NEW PROCEDURES FOR DEICING LARGE COMMERCIAL AIRLINERS NOTED THE FEDERAL APPEALS COURT IN NEW YORK APPROVED A DISCOUNTED SETTLEMENT OF ASBESTOS CLAIMS BY THREE GROUPS OF PLAINTIFFS AND THE MANVILLE PERSONALINJURY SETTLEMENT TRUST THE DECISION REJECTED A CHALLENGE BY OTHER GROUPS OF CLAIMANTS TO THE SETTLEMENT WHICH WAS APPROVED BY US DISTRICT JUDGE JACK B WEINSTEIN LAST JULY THE DEAL ALLOWS THE PAYMENT OF BETWEEN 300 MILLION AND 350 MILLION TO SOME 11000 CLAIMANTS IN THE THREE GROUPS REFLECTING A 25 DISCOUNT FROM PRIOR JUDGMENTS TO WHICH THEY WERE ENTITLED ACCORDING TO JAMES L STENGEL OF DONOVAN LEISURE NEWTON & IRVINE WHICH REPRESENTS THE TRUST MICHAEL J MCCARTHY CONTRIBUTED TO THIS ARTICLE 9401110166 940111 TECHNOLOGY BELL ATLANTIC AND TCI PLAN DATA NETWORK FOR SCHOOLS NEW YORK BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC SAID THEY PLAN AN INFORMATION NETWORK THAT COULD LINK MORE THAN 26000 PUBLIC SCHOOLS THE COMPANIES WHICH PLAN TO SPEND 15 BILLION OVER THE NEXT FIVE YEARS ON A NATIONAL VIDEO INFORMATION NETWORK SAID THE SERVICE WOULD INCLUDE ITS EDUCATION CONNECTION TWOWAY INTERACTION SYSTEM WHICH IS EXPECTED EVENTUALLY TO ALLOW STUDENTS TO COMMUNICATE WITH TEACHERS WITH A VIDEOCOMPUTER SYSTEM USING ELECTRONICMAIL MESSAGES THE COMPANIES SAID THEY PLAN TO OFFER THE SERVICE INITIALLY AT NO CHARGE TO SCHOOLS IN ORDER TO PROMOTE EMERGING COMMUNICATIONS TECHNOLOGIES THE SYSTEM INITIALLY WILL INCLUDE FREE EDUCATIONAL CABLETELEVISION PROGRAMMING FREE ACCESS TO CERTAIN EXISTING DATA SERVICES SUCH AS THE ELECTRONIC NEWS SERVICE XPRESS/XCHANGE AND LINKS TO PERMIT ACCESS TO THE INTERNET AND OTHER COMPUTER NETWORKS EVENTUALLY SCHOOLS WILL BE EXPECTED TO PAY MONTHLY FEES BASED ON THE SERVICES SELECTED COSTS MAY BEGIN AT 20 MONTHLY A BELL ATLANTIC SPOKESMAN SAID THE NETWORK WILL BE OFFERED INDEPENDENTLY BY BELL ATLANTIC A PHILADELPHIABASED REGIONAL TELECOMMUNICATIONS COMPANY AND TCI DENVER THE NATION'S LARGEST CABLETV COMPANY BELL ATLANTIC HAS AGREED TO ACQUIRE TCI IN A STOCK SWAP VALUED AT MORE THAN 20 BILLION THE JOINT EFFORT IS A PRELUDE TO THAT ACQUISITION 9401110165 940111 WHO'S NEWS INTERTAN INC INTERTAN INC BARRIE ONT JOHN A CAPSTICK WAS NAMED CHAIRMAN OF THIS CONSUMER ELECTRONICS RETAILER MR CAPSTICK 53 YEARS OLD AN INTERTAN DIRECTOR SUCCEEDS JOHN H MCDANIEL 75 WHO IS RETIRING AS CHAIRMAN BUT REMAINING A DIRECTOR 9401110163 940111 INTERNATIONAL NATO TO GIVE WESTERN EUROPE INDEPENDENT MILITARY CAPABILITY US IN A RAPPROCHEMENT WITH FRANCE AGREES TO HISTORIC CHANGES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE NATO ALLIANCE IS SET TO GIVE WESTERN EUROPE THE INDEPENDENT MILITARY CAPABILITY THAT FRANCE HAS BEEN SEEKING FOR MORE THAN 20 YEARS MARKING A STRIKING RAPPROCHEMENT BETWEEN FRANCE AND THE US AT THE CONCLUSION OF ITS TWODAY SUMMIT HERE TODAY THE NORTH ATLANTIC TREATY ORGANIZATION IS EXPECTED TO APPROVE TWO IMPORTANT INITIATIVES THAT AMOUNT TO A FUNDAMENTAL SHIFT IN THE STRUCTURE OF THE ALLIANCE ALTHOUGH TAKEN IN THE SHADOW OF CONTROVERSIES OVER BOSNIA AND OVER WHETHER TO EXTEND THE ALLIANCE TO EASTERN EUROPE THE INITIATIVES ARE NONETHELESS BEING HAILED BY NATO OFFICIALS AS A HISTORIC TURNING POINT REVERSING A LONGSTANDING POLICY THE US IS GIVING EXPLICIT POLITICAL RECOGNITION TO THE VALIDITY OF AN INDEPENDENT EUROPEONLY DEFENSE AND IS READY FOR THE FIRST TIME TO ALLOW THE EUROPEANS TO USE NATO EQUIPMENT AND RESOURCES FOR THEIR OWN MILITARY OPERATIONS EUROPEAN DEFENSE EFFORTS ARE CURRENTLY CONCENTRATED IN THE WESTERN EUROPEAN UNION THE MILITARY ARM OF THE 12NATION EUROPEAN UNION AS WELL AS A NEWLY CONSTITUTED FRANCOGERMAN CORPS BASED IN STRASBOURG FRANCE THE SUMMIT IS ALSO SET TO CREATE A FLEXIBLE NATO MILITARY ENTITY DUBBED THE COMBINED JOINT TASK FORCE THAT COULD CONDUCT PEACEKEEPING HUMANITARIAN AND OTHER MILITARY OPERATIONS WITH OR WITHOUT US PARTICIPATION SET UP WITH AN EYE ON REGIONAL TURMOIL IN EASTERN EUROPE THE TASK FORCE COULD SERVE UNDER THE COMMAND OF EITHER THE WEU OR NATO UNDER THE PLAN NATOTRAINED AND INTEGRATED MILITARY FORCES AND ASSETS CAN BE PULLED OUT OF THE COMMAND AND ACTUALLY ASSIGNED AND DEPLOYED IN EUROPEANONLY CONTINGENCIES SAID LES ASPIN THE US DEFENSE SECRETARY IN RETURN FRANCE IS FORMALLY SOFTENING ITS OWN OBJECTIONS TO TAKING PART IN NATO'S INTEGRATED MILITARY COMMAND WHICH THE FRENCH LEFT IN 1966 FRENCH OFFICIALS SAY THE NATION'S DEFENSE MINISTER AND CHIEF OF STAFF WILL PARTICIPATE IN OPERATIONAL MEETINGS AT NATO HEADQUARTERS BUT ON A CASEBYCASE BASIS WHEN FRENCH TROOPS ARE INVOLVED RATHER THAN AS A GENERAL RULE TOP FRENCH OFFICIALS HAVE ALREADY BEEN SITTING IN ON NATO DISCUSSIONS ABOUT BOSNIA FOR SEVERAL MONTHS BUT THE POLICY IS ONLY NOW BEING MADE FORMAL THE RAPPROCHEMENT BETWEEN FRANCE AND THE US TRADITIONAL RIVALS INSIDE NATO IS A STARTLING CHANGE FOR YEARS DURING THE COLD WAR FRANCE CANVASSED FOR A STRONGER EUROPEAN PILLAR IN NATO ONLY TO BE REBUFFED BY THE US WHICH WORRIED THAT SUCH A MOVE COULD LEAD TO THE DISINTEGRATION OF THE WESTERN ALLIANCE TODAY HOWEVER OFFICIALS OF BOTH SIDES SAY MILITARY CONTACTS BETWEEN THE TWO NATIONS ARE BETTER THAN THEY HAVE BEEN FOR YEARS NOT LEAST BECAUSE OF A CLOSE WORKING RELATIONSHIP BETWEEN GEN JOHN M SHALIKASHVILI AND ADMIRAL JACQUES LANXADE THE TOP OFFICERS OF THE TWO NATIONS THE CHANGES RESULT FROM THE SWEEPING CHANGE IN WESTERN STRATEGIC AND POLITICAL THINKING SINCE THE COLLAPSE OF THE SOVIET UNION INSTEAD OF A MONOLITHIC AND MENACING COMMUNIST BLOC THE WESTERN ALLIANCE NOW PERCEIVES ITS ENEMY TO BE INSTABILITY AND REGIONAL CONFLICT AS EXEMPLIFIED BY THE CIVIL WAR IN FORMER YUGOSLAVIA WE HAVE TO RECOGNIZE THAT THIS NEW SECURITY CHALLENGE REQUIRES A RANGE OF RESPONSES DIFFERENT FROM THE ONES OF THE PAST PRESIDENT CLINTON TOLD HIS NATO COLLEAGUES YESTERDAY THAT IS WHY OUR ADMINISTRATION HAS BROKEN WITH PREVIOUS AMERICAN ADMINISTRATIONS IN GOING BEYOND WHAT OTHERS HAVE DONE TO SUPPORT EUROPEAN EFFORTS TO ADVANCE THEIR OWN SECURITY AND INTERESTS THE NOTION OF EUROPEANS BEING ABLE TO DO MORE FOR THEIR OWN DEFENSE WITH AMERICAN BLESSING REFLECTS BOTH THE DIMINISHING US ROLE IN EUROPE AND THE COMMON SECURITY ASPIRATIONS OF WESTERN EUROPE AS LAID DOWN IN THE MAASTRICHT TREATY THAT DOCUMENT WHICH TOOK EFFECT IN NOVEMBER CREATES THE CONDITIONS FOR THE EMERGENCE OF A COMMON FOREIGN AND SECURITY POLICY IN WESTERN EUROPE THE EXACT USES OF THE INDEPENDENT EUROPEAN MILITARY CAPABILITY REMAIN THEORETICAL AND SOME DETAILS ABOUT HOW IT WILL WORK IN PRACTICE STILL NEED TO BE SETTLED BUT GREAT PAINS HAVE BEEN TAKEN TO ENSURE THAT THE NEW INITIATIVES ARE ACCEPTABLE TO ALL SIDES INCLUDING BRITAIN WHICH IS THE MOST IMPORTANT EUROPEAN MILITARY POWER ALONGSIDE FRANCE BUT FAR MORE SKEPTICAL THAN PARIS ABOUT THE USES AND NEED FOR PANEUROPEAN FORCES THE DIPLOMATIC FORMULA BEING USED TO DESCRIBE THE INITIATIVES IS SEPARABLE BUT NOT SEPARATE CAPABILITY A CHOICE OF WORDS DESIGNED TO UNDERSCORE THAT NATO AND THE WEU WILL COMPLEMENT RATHER THAN COMPETE WITH EACH OTHER THE KEY FOR SKEPTICS IS THAT NATO AND HENCE THE US WILL CONTINUE TO BE CLOSELY INVOLVED IN ANY MILITARY DECISIONS BY THE EUROPEANS MR CLINTON TOLD THE ALLIES THAT NATO MUST REMAIN THE LINCHPIN OF OUR SECURITY AND FRENCH PRESIDENT FRANCOIS MITTERRAND SAID IN A WEEKEND INTERVIEW THAT CLOSE COORDINATION BETWEEN THE WEU AND NATO WAS VITAL NONETHELESS THERE IS SOME LINGERING CONCERN ABOUT THE INITIATIVES THEY COULD SPEED THE DISENGAGEMENT OF THE US FROM EUROPE WHICH NOT EVEN THE MAVERICK FRENCH WANT TO SEE WORSE THEY COULD REPLACE STRONG AMERICAN LEADERSHIP THAT HAS KEPT THE PEACE FOR FOUR DECADES WITH THE SORT OF FRACTIOUS DEBATE AND INDECISION THAT CONTINUE TO DOG EUROPEAN UNITY YUGOSLAVIA HAS BEEN THE FIRST TEST AND SO FAR EUROPE HASN'T PRODUCED MUCH PROOF OF ITS COHERENCE THE QUESTION OF WHAT FURTHER MILITARY ACTION IF ANY TO TAKE IN BOSNIA WAS HOTLY DEBATED ON THE FIRST DAY OF THE NATO SUMMIT WITH PRESIDENT MITTERRAND INSISTING THAT THE CURRENT STATUS HAD TO CHANGE BUT THERE REMAINS SUBSTANTIAL DISAGREEMENT BETWEEN BRITAIN AND FRANCE WHICH BOTH HAVE TROOPS IN BOSNIA OVER WHETHER TO INCREASE FORCES THERE OR WHETHER TO START AERIAL BOMBARDMENTS OF SERB POSITIONS THE NATO SUMMIT AS EXPECTED FORMALLY APPROVED THE IDEA OF PARTNERSHIP FOR PEACE A USINSPIRED PROPOSAL THAT OFFERS MILITARY COOPERATION TO EAST EUROPEAN NATIONS BUT STOPS SHORT OF LETTING THEM JOIN THE WESTERN ALLIANCE IN THE NEAR FUTURE EAST EUROPEAN NATIONS SUCH AS POLAND AND THE CZECH REPUBLIC UNNERVED BY THE RISE OF MILITANT NATIONALISTS IN RUSSIA HAD HOPED TO BE GIVEN A MORE PRECISE TIMETABLE AND SET OF CRITERIA FOR JOINING NATO THEY HAVE GIVEN THE PROPOSAL AT BEST ONLY LUKEWARM SUPPORT HOWEVER SECRETARY OF STATE WARREN CHRISTOPHER TOLD REPORTERS THAT EAST EUROPEAN NATIONS WERE SHOWING A VERY HIGH DEGREE OF ACCEPTANCE OF THE PLAN HE SAID HE EXPECTED THAT POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA WOULD ALL SIGN ON THIS WEEK 9401110162 940111 GE UNIT'S CAROLINA POWER ORDER FAIRFIELD CONN GENERAL ELECTRIC CO SAID ITS GE INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED A 35 MILLION ORDER FROM CAROLINA POWER & LIGHT CO RALEIGH NC FOR REPLACEMENT PARTS AND ADDITIONAL COMPONENTS FOR THREE GE NUCLEAR STEAM TURBINE ROTORS 9401110161 940111 WHO'S NEWS FRUEHAUF TRAILER CORP FRUEHAUF TRAILER CORP SOUTHFIELD MICH G ALLAN GABORIC AGE 51 WAS NAMED GENERAL MANAGER OF THE VAN & REEFER PRODUCTS UNIT OF THIS MANUFACTURER OF TRUCK TRAILERS AND EQUIPMENT PRIOR TO THIS APPOINTMENT MR GABORIC HELD VARIOUS EXECUTIVE POSITIONS WITH THE CARRIER SUBSIDIARY OF UNITED TECHNOLOGIES CORP 9401110160 940111 WHO'S NEWS NETWORK SYSTEMS CORP NETWORK SYSTEMS CORP MINNEAPOLIS MICHAEL FG ASHBY WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPUTERNETWORKING CONCERN FILLING A LONGVACANT POST MR ASHBY 45 YEARS OLD HAS BEEN CHIEF FINANCIAL OFFICER SINCE SEPTEMBER 1992 HE FILLS A POST LAST HELD BY LYLE ALTMAN WHO WAS ELECTED PRESIDENT IN 1981 AND CHAIRMAN IN 1990 9401110159 940111 WHO'S NEWS CALIFORNIA MICRO DEVICES CORP CALIFORNIA MICRO DEVICES CORP MILPITAS CALIF JOHN L SPRAGUE 62 YEARS OLD WAS NAMED A DIRECTOR OF THIS SEMICONDUCTOR CONCERN INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS MR SPRAGUE A CONSULTANT RETIRED IN 1987 FROM THE COMPANY HE FOUNDED SPRAGUE ELECTRIC CO A PIONEER IN SILICON TECHNOLOGY 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 9401110158 940111 WHO'S NEWS DUKE POWER CO DUKE POWER CO CHARLOTTE NC WILLIAM S LEE 64 YEARS OLD PRESIDENT CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE ELECTRIC UTILITY WILL RETIRE IN JUNE MR LEE SAID HE WOULD NAME A SUCCESSOR ON JAN 25 AFTER THE COMPANY'S BOARD MEETING MR LEE WILL REMAIN IN HIS PRESENT DUTIES UNTIL HIS RETIREMENT HE JOINED DUKE POWER IN 1955 AND HAS SERVED AS CEO FOR 12 YEARS 9401110157 940111 WHO'S NEWS CREDENCE SYSTEMS CORP CREDENCE SYSTEMS CORP FREMONT CALIF BERNARD VONDERSCHMITT 69 YEARS OLD AND HENK J EVENHUIS 41 WERE ELECTED DIRECTORS OF THIS MAKER OF SEMICONDUCTORTESTING EQUIPMENT MR VONDERSCHMITT PRESIDENT OF XILINX INC AND MR EVENHUIS CHIEF FINANCIAL OFFICER OF LAM RESEARCH CORP FILL VACANCIES ON CREDENCE'S NINEMEMBER BOARD 9401110156 940111 WHO'S NEWS GENUS INC GENUS INC SUNNYVALE CALIF TODD S MYHRE 49 YEARS OLD WAS NAMED PRESIDENT OF THIS SEMICONDUCTOREQUIPMENT CONCERN MR MYHRE WHO RETAINS HIS POST AS GENUS'S CHIEF OPERATING OFFICER SUCCEEDS WILLIAM WR ELDER 55 WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9401110155 940111 WHO'S NEWS SHONEY'S INC SHONEY'S INC NASHVILLE TENN B FRANKLIN SKINNER 62 YEARS OLD AND H CAL TRUNER 53 WERE ELECTED TO THE BOARD OF THIS RESTAURANT OPERATOR AND FRANCHISER INCREASING IT TO 12 MEMBERS MR SKINNER IS A FORMER CHAIRMAN OF BELLSOUTH COMMUNICATIONS INC AND MR TURNER IS CHAIRMAN AND CHIEF EXECUTIVE OF DOLLAR GENERAL CORP 9401110154 940111 DIVIDEND NEWS AUTHENTIC FITNESS CORP AUTHENTIC FITNESS CORP VAN NUYS CALIF ANNOUNCED A 2FOR1 STOCK SPLIT EFFECTIVE FEB 10 FOR SHAREHOLDERS OF RECORD JAN 20 THE COMPANY MANUFACTURES SWIMWEAR AND FITNESS CLOTHING AND OPERATES EIGHT FITNESSORIENTED RETAIL STORES IT PLANS TO OPEN 40 MORE STORES THIS YEAR 9401110153 940111 TECHNOLOGY & MEDICINE INTEL TO DEVELOP A PC STANDARD IN CONFERENCING BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF INTEL CORP SAID IT HAS ASSEMBLED A GROUP OF COMPANIES THAT PLANS TO CREATE RULES FOR HOW PERSONAL COMPUTERS WORK TOGETHER TO ALLOW USERS TO HOLD CONFERENCES ON THEIR MACHINES INTEL SAID IT EXPECTS THE GROUP BY MID1994 TO COMPLETE A SPECIFICATION FOR THE INTERACTION OF PCS SOFTWARE COMMUNICATIONS NETWORKS AND OTHER ELEMENTS NEEDED FOR DESKTOP VIDEO CONFERENCING THE SPECIFICATION WILL ALSO COVER WHAT INTEL CALLS DOCUMENT CONFERENCING WHICH PERMITS MANY PC USERS TO HOLD COMPUTER MEETINGS IN WHICH THEY WORK SIMULTANEOUSLY ON DOCUMENTS THEY PASS AMONG THEMSELVES THE PC INDUSTRY HAS LONG SOUGHT TECHNOLOGIES TO ALLOW DESKTOP MACHINES TO BE USED AS TOOLS THAT ALLOW DISTANTLY SEPARATED CONFEREES TO SEE EACH OTHER ON THEIR COMPUTER SCREENS WHILE THEY TALK AND SHARE COMPUTER DATA BUT AS THOSE TECHNOLOGIES DEVELOP THERE HASN'T BEEN A SINGLE DOMINANT STANDARD THAT WOULD ALLOW COMPANIES TO MAKE SURE THEIR PRODUCTS ALL WORK TOGETHER IN SUCH CONFERENCES INTEL WHICH HAS BEEN DEVELOPING VIDEOCONFERENCING PRODUCTS FOR SEVERAL YEARS SAW A WEAKNESS IN THE LACK OF A STANDARD THERE WAS TOO LARGE A HOLE IN THE PC FOR THIS TO BECOME A PERSONAL CONFERENCING TOOL SAID PATRICK GELSINGER GENERAL MANAGER OF INTEL'S PERSONAL CONFERENCING DIVISION THE INTELLED TEAM OF 13 COMPANIES WOULD SEEK TO CREATE AN INDUSTRY STANDARD BY PROVIDING RULES FOR HOW PCS INTERACT OVER VARIOUS TRANSMISSION MEDIA SUCH AS PHONE LINES COMPUTER NETWORKS AND FIBEROPTIC LINES MR GELSINGER SAID THE GROUP INCLUDES MANY LEADERS IN COMPUTERS AND COMMUNICATIONS AMONG THEM COMPAQ COMPUTER CORP COMPRESSION LABS INC PICTURETEL CORP LOTUS DEVELOPMENT CORP WORDPERFECT CORP NOVELL INC AND NORTHERN TELECOM NOTABLY ABSENT IS MICROSOFT CORP WITH WHICH INTEL IS WORKING ON MANY OTHER PCRELATED SPECIFICATIONS INCLUDING SOME FOR COMMUNICATIONS INTEL IS WORKING CLOSELY WITH MICROSOFT AND IS OPTIMISTIC THAT THE SOFTWARE MAKER WILL EVENTUALLY JOIN IN THE EFFORT MR GELSINGER SAID MICROSOFT OFFICIALS COULDN'T BE REACHED FOR COMMENT 9401110152 940111 ENTERPRISE TESTING SELFMANAGED TEAMS ENTREPRENEUR HOPES TO LOSE JOB BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL ERIC GERSHMAN PRESIDENT AND FOUNDER OF PUBLISHED IMAGE HAS AN UNUSUAL CAREER GOAL HE WANTS TO ELIMINATE HIS JOB MR GERSHMAN SET IT LAST SUMMER WHEN HE ORGANIZED HIS SMALL BOSTON CONCERN INTO FOUR SELFMANAGED TEAMS A HOT CONCEPT IN WHICH WORKERS LARGELY OPERATE WITHOUT BOSSES TODAY THE NEWSLETTER PUBLISHER'S 26 EMPLOYEES SET THEIR OWN WORK SCHEDULES PREPARE THEIR OWN BUDGETS AND RECEIVE GROUP BONUSES BASED ON THEIR TEAM'S PERFORMANCE MANAGERS RENAMED COACHES PRIMARILY PLAY ADVISORY ROLES IN RECENT YEARS SELFMANAGED WORK TEAMS HAVE BECOME VERY POPULAR AMONG BIG CORPORATIONS AS A WAY TO ELIMINATE MIDDLE MANAGERS WHILE IMPROVING MORALE AND BOOSTING PRODUCTIVITY BUT SUCH TEAMS REMAIN RARE AMONG SMALL BUSINESSES MOST SMALLBUSINESS OWNERS DON'T SEE HOW THE IDEA COULD BENEFIT THEM AND THEIR ENTERPRISES BUT MR GERSHMAN SAYS CREATION OF THE TEAMS HAS HALTED CHRONICALLY HIGH EMPLOYEE TURNOVER HELPED THE COMPANY KEEP CUSTOMERS AND INCREASED PROFIT IT ALSO HAS HELPED PUBLISHED IMAGE INC TO MANAGE ITS RAPID GROWTH BY BETTER FOCUSING ON CLIENTS' NEEDS HE ADDS COMPANY REVENUE DOUBLED TO 4 MILLION IN 1993 AND ITS PROFIT MARGIN INCREASED TO 20 FROM 3 IN 1992 MR GERSHMAN SAYS MORE THAN A THIRD OF LAST YEAR'S PROFITMARGIN GAIN CAME DURING THE FOURTH QUARTER HE NOTES AFTER THE TEAMS WERE IMPLEMENTED HE EXPECTS REVENUE OF 6 MILLION THIS YEAR EVENTUALLY THE 33YEAROLD ENTREPRENEUR ADDS I HOPE THIS BUSINESS CAN RUN WITHOUT ME SMALL FIRMS OFTEN FEAR THAT FORMALIZING TEAMWORK WOULD INCREASE BUREAUCRACY RATHER THAN FIGHT IT BY BREAKING DOWN WALLS BETWEEN DEPARTMENTS SAYS AUBREY DANIELS A TUCKER GA MANAGEMENT CONSULTANT WHO MAINLY ADVISES SMALLER CONCERNS OWNERS THINK IT IS DIFFICULT CONCEPT TO ADMINISTER AND WHEN THEY TALK TO SOME LARGER COMPANIES THAT USE TEAMS THEY SEE THAT IT HAS BEEN BURDENSOME DR DANIELS CONTINUES EVEN ENTREPRENEURS WHO FAVOR SELFMANAGED TEAMS OFTEN LACK THE TIME OR RESOURCES TO IMPLEMENT THEM SAYS EDWARD LAWLER III DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S CENTER FOR EFFECTIVE ORGANIZATIONS YOU HAVE TO SERIOUSLY REDESIGN THE ORGANIZATION TO MAKE THEM MOST EFFECTIVE MR GERSHMAN SAYS HIS INTEREST IN SELFMANAGED TEAMS AND IN RUNNING HIS OWN COMPANY BEGAN AFTER COLLEGE WHEN HE JOINED A BOSTON AD AGENCY AS A COPYWRITER I ALWAYS FELT I HAD BETTER WAYS OF DOING THINGS THAN MY BOSS HE SAYS SO MUCH SO HE ADDS THAT HE WAS FIRED AFTER TWO YEARS MR GERSHMAN SAW AN OPPORTUNITY TO START A SMALL BUSINESS SIX YEARS LATER WHILE PRODUCING A CUSTOMER NEWSLETTER AS MARKETING DIRECTOR FOR A SMALL STOCKBROKERAGE CONCERN IN NEW YORK WITH BILLIONS OF DOLLARS POURING INTO MUTUAL FUNDS HE SAYS HE ANTICIPATED BIG DEMAND FOR SHAREHOLDER NEWSLETTERS AMONG MUTUALFUND COMPANIES IN 1988 MR GERSHMAN USED 5000 IN SAVINGS TO FORM PUBLISHED IMAGE BY 1991 THE ENTREPRENEUR SAYS THE COMPANY WAS GENERATING 600000 IN ANNUAL SALES BY PRODUCING PUBLICATIONS FOR SHAREHOLDERS OF 11 MUTUALFUND CONCERNS YET IT WAS ON THE BRINK OF FAILURE HE RECALLS PUBLISHED IMAGE'S RAPID GROWTH HAD COME AT THE EXPENSE OF WORKER MORALE PRODUCT QUALITY AND CUSTOMER RETENTION EMPLOYEE TURNOVER WAS RUNNING 50 A YEAR READERS WERE COMPLAINING ABOUT NUMEROUS FACTUAL ERRORS AND THE COMPANY WAS LOSING A THIRD OF ITS CLIENTS EVERY YEAR MR GERSHMAN SAYS MR GERSHMAN SAYS THAT TO SAVE PUBLISHED IMAGE HE BEGAN AN OVERHAUL OF THE ORGANIZATION HE SAYS HE TIED EVERYONE'S PAY TO PERFORMANCE EXPANDED STAFF TRAINING AND TIGHTENED DEADLINES BUT BY EARLY LAST YEAR MORALE REMAINED LOW AND TURNOVER DANGEROUSLY HIGH MR GERSHMAN RECOLLECTS WE HAD A COMPANY WHOSE EMPLOYEES BELIEVED THEIR JOB WAS TO PLEASE THEIR BOSS INSTEAD OF THE CUSTOMER WE NEEDED TO RADICALLY CHANGE THE ORGANIZATION HE SAYS IN MAY MR GERSHMAN READ ABOUT SELFMANAGED TEAMS AND DECIDED THE IDEA COULD COMPLETE HIS TURNAROUND HE DEVELOPED A 250PAGE DOCUMENT TO GUIDE PUBLISHED IMAGE'S REORGANIZATION INTO SELFMANAGED TEAMS HE BROKE THE NEWS LAST AUGUST STAFF MEMBERS RECEIVED RED TSHIRTS EMBLAZONED WITH THE SLOGAN THE UNITED DAY IT WAS THE DAY WE BLEW UP THE OLD COMPANY AND TOTALLY CHANGED PEOPLE'S THINKING ABOUT WHAT THEIR JOB IS MR GERSHMAN SAYS NOW PUBLISHED IMAGE CONSISTS OF FOUR LARGELY AUTONOMOUS TEAMS EACH WITH ITS OWN CLIENTS AND STAFF OF SALES EDITORIAL AND PRODUCTION WORKERS WHILE EACH MEMBER SPECIALIZES IN A SKILL EACH PERFORMS ANY FUNCTION TO MEET DAILY DEADLINES IN ADDITION TO HER MAIN TASKS AS AN ACCOUNT EXECUTIVE 27YEAROLD SHELLEY DANSE SAYS SHE DOES RESEARCH FOR WRITERS PROOFREADS COPY AND HELPS TO LAY OUT ART WE WORK LIKE A UNIT AND PITCH IN TO GET OUT ON TIME WHATEVER HAS TO GET DONE SHE SAYS SUCH JOB SHARING BROADENS EACH MEMBER'S PERSPECTIVE AND IMPROVES PLANNING IF THE TEAM GETS BACKED UP MS DANSE HOLDS OFF BRINGING IN NEW BUSINESS THE APPROACH ALSO INCREASES EFFICIENCY WHERE MS DANSE ONCE HAD TO MEET WITH EACH DEPARTMENT AFTER SIGNING UP NEW CUSTOMERS TEAM MEMBERS ARE INVOLVED IN THE SALES PROCESS FROM THE BEGINNING SINCE AUGUST THERE HAS BEEN NO EMPLOYEE TURNOVER AND PUBLISHED IMAGE IS LOSING CUSTOMERS AT A RATE OF LESS THAN 5 A YEAR MR GERSHMAN SAYS SELFMANAGED WORK TEAMS MEAN WE HAVE ONE GROUP OF PEOPLE WHO KNOW ALL FACETS OF OUR JOB AND WE CAN CONTACT ANY OF THEM DURING THE PROCESS SAYS CLIENT PETER HERLIHY VICE PRESIDENT OF MUTUALFUND MARKETING AT FLEET FINANCIAL GROUP INC PROVIDENCE RI FLEET USED TO COMPLAIN ABOUT FACTUAL ERRORS IN FOUR PUBLISHED IMAGE NEWSLETTERS BUT NO LONGER GRIPES ACCORDING TO MR GERSHMAN PUBLISHED IMAGE COACHES LIKE 28YEAROLD DANA ADAMS WHO RAN ITS NOWABOLISHED PRODUCTION DEPARTMENT RATE THE TEAMS FOR TIMELINESS AND ACCURACY A MONTHLY SCORE OF 90 OR HIGHER ENTITLES MEMBERS TO BIANNUAL BONUSES WHICH CAN EQUAL UP TO 15 OF AN EMPLOYEE'S BASE PAY PUBLISHED IMAGE SAYS IT EXPECTS TO PAY SUCH BONUSES FOR THE FIRST TIME NEXT MONTH MR ADAMS SAYS HE SPENDS THE REST OF HIS TIME OFFERING ADVICE RATHER THAN GIVING ORDERS AND WHILE MR ADAMS FIELDS 25 TO 30 QUESTIONS A DAY FROM TEAM MEMBERS HE EXPECTS HE WILL STOP HEARING FROM THEM SOMEDAY LIKE PUBLISHED IMAGE'S FOUNDER MR ADAMS SAYS MY JOB IS BASICALLY TO ELIMINATE MY JOB 9401110151 940111 LAW JUSTICES TO RULE ON CONGRESSIONAL MOVE TO REINSTATE SECURITIESFRAUD LAWSUITS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO CONSIDER WHETHER CONGRESS CAN REINSTATE CERTAIN FEDERAL SECURITIESFRAUD LAWSUITS THAT WERE DISMISSED IN RESPONSE TO A 1991 HIGHCOURT RULING FOR PROCEDURAL REASONS THE DECISION WHICH INVOLVES THE DEADLINE FOR FILING FRAUD SUITS UNDER A WIDELY USED PROVISION KNOWN AS SECTION 10B OF THE SECURITIES EXCHANGE ACT OF 1934 PROBABLY WON'T AFFECT MANY DISPUTES DIRECTLY BUT THE JUSTICES COULD USE THE CASE TO DECIDE A BASIC CONSTITUTIONAL QUESTION HOW FAR MAY CONGRESS GO IN RETROACTIVELY MODIFYING OR REVERSING FINAL JUDGMENTS BY FEDERAL COURTS THE ISSUE HAS ARISEN SINCE THE COUNTRY'S EARLY YEARS IN A WIDE VARIETY OF CONTEXTS INCLUDING COMMERCIAL LABOR AND INDIANRIGHTS DISPUTES THE GENERAL RULE IS THAT CONGRESS SHOULDN'T INTERFERE WITH CONCLUSIVE JUDICIAL DECISIONS BUT THE SUPREME COURT HAS ALLOWED EXCEPTIONS IN SOME CIRCUMSTANCES IN THE CASE NOW AT ISSUE CONGRESS RESUSCITATED HUNDREDS OF FRAUD SUITS FILED UNDER SECTION 10B THE SUITS WERE BLOCKED AFTER THE SUPREME COURT IN JUNE 1991 IMPOSED UNIFORM TIME LIMITS ON THE FILING OF SUITS UNDER THE LAW UP TO THEN LOWER COURTS TYPICALLY HAD APPLIED THE STATUTE OF LIMITATIONS OF THE STATE WHERE A FRAUD ALLEGEDLY OCCURRED THE STATE DEADLINES OFTEN WERE MORE FAVORABLE TO PLAINTIFFS UNHAPPY THAT THE HIGH COURT'S RULING WOULD BLOCK PENDING SECURITIESFRAUD SUITS CONGRESS PASSED A LAW IN DECEMBER 1991 THAT SAID SUITS BEGUN BEFORE THE SUPREME COURT DECISION SHOULD STILL BE GOVERNED BY THE APPLICABLE STATE TIME LIMITS MOREOVER CONGRESS REINSTATED SUITS THAT HAD BEEN DISMISSED IF A REQUEST FOR REINSTATEMENT WAS FILED WITHIN 60 DAYS WHEN PLAINTIFFS TOOK ADVANTAGE OF THE LAW SOME DEFENDANTS OBJECTED THAT THEIR LEGAL VICTORIES WERE BEING IMPROPERLY REVOKED BY THE LEGISLATIVE BRANCH THE CASE THE SUPREME COURT AGREED TO HEAR COMMENCED IN MARCH 1991 FILED BY PACIFIC MUTUAL LIFE INSURANCE CO AGAINST A GROUP OF MAJOR WALL STREET INVESTMENT AND ACCOUNTING FIRMS AMONG OTHERS IT CONCERNED ALLEGED MISREPRESENTATIONS IN CONNECTION WITH PACIFIC MUTUAL'S PURCHASE OF 8 MILLION IN SECURITIES IN 1987 AMONG THE DEFENDANTS WERE THE ACCOUNTING FIRM ERNST & YOUNG AND THE SECURITIES FIRMS MORGAN STANLEY GROUP INC SALOMON INC AND GOLDMAN SACHS & CO THE SUIT MET THE TIME LIMIT UNDER THE RELEVANT TEXAS LAW BUT IT WAS DISMISSED AFTER THE SUPREME COURT'S JUNE 1991 RULING BECAUSE PACIFIC MUTUAL HADN'T MET THE NEW MORE STRINGENT FEDERAL TIME LIMIT NAMELY THAT SUCH SUITS MUST BE FILED WITHIN ONE YEAR OF WHEN A PLAINTIFF DISCOVERED THE ALLEGED FRAUD OR WITHIN THREE YEARS AFTER THE FRAUD OCCURRED THE INSURER DIDN'T APPEAL BUT WHEN CONGRESS PASSED THE DECEMBER 1991 LAW PACIFIC MUTUAL SOUGHT TO HAVE THE SUIT REINSTATED THE FEDERAL APPEALS COURT IN NEW ORLEANS EVENTUALLY DID SO THE NEW ORLEANS APPEALS COURT RULED THAT CONGRESS HADN'T VIOLATED THE CONSTITUTIONAL SEPARATION OF POWERS BY REINSTATING SUCH CASES THE CONSTITUTION DOES NOT FORBID CONGRESS FROM MANDATING THAT A CONTROVERSY CONTINUES WHEN THE COURT SAYS THAT IT IS DONE THE APPELLATE COURT SAID THE COURT ALSO REJECTED THE DEFENDANTS' ARGUMENT THAT THE LAW DENIED THEIR RIGHT TO DUE PROCESS CONGRESS MAY MODIFY LITIGANTS' RIGHTS IF THERE IS A RATIONAL BASIS FOR THE LEGISLATION THE COURT SAID BUT IN A SEPARATE CASE THE FEDERAL APPEALS COURT IN CINCINNATI SAID THE STATUTE WAS AN UNCONSTITUTIONAL LEGISLATIVE INFRINGEMENT OF JUDICIAL AUTHORITY THE SUPREME COURT PRESUMABLY WILL RESOLVE THE CONFLICT FIRST REPUBLICBANK CORP VS PACIFIC MUTUAL LIFE INSURANCE CO SEPARATELY THE HIGH COURT AGREED TO RESOLVE A CRITICAL AMBIGUITY IN FEDERAL BANKRUPTCY LAW AFFECTING THE RELATIVE POWER OF INSOLVENT COMPANIES' SHAREHOLDERS AND CREDITORS THE PROBLEM ARISES FREQUENTLY UNDER CHAPTER 11 OF THE BANKRUPTCY CODE WHICH ALLOWS AN INSOLVENT CONCERN TO SEEK TEMPORARY PROTECTION FROM ITS CREDITORS WHILE IT DESIGNS A REORGANIZATION PLAN CHAPTER 11 IS SUPPOSED TO FOSTER CONSENSUS ON HOW TO WORK OUT SUCH REORGANIZATIONS BUT THE STATUTE PERMITS DEBTORS UNDER CERTAIN CIRCUMSTANCES TO SEEK COURT APPROVAL FOR PLANS OPPOSED BY SOME CREDITORS FOR EXAMPLE CHAPTER 11 STATES THAT A DISPUTED PLAN MUST PAY AN OBJECTING GROUP OF CREDITORS IN FULL BEFORE IT ALLOWS ANYONE WITH A LEGALLY INFERIOR CLAIM TO RECEIVE OR RETAIN ANY ASSETS SOME COURTS HAVE ALLOWED AN EXCEPTION TO THIS SOCALLED ABSOLUTEPRIORITY RULE WHEN SHAREHOLDERS OF A DEBTOR COMPANY PROPOSE TO INJECT NEW MONEY IN EXCHANGE FOR RETAINING OWNERSHIP OF THE REORGANIZED FIRM IN OTHER ACTIONS YESTERDAY THE SUPREME COURT DECLINED AS EXPECTED TO REVIEW A LOWERCOURT RULING THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WAS EXEMPT FROM FORMAL ENVIRONMENTAL REVIEW A FEDERAL APPEALS COURT IN WASHINGTON SAID LAST SEPTEMBER THAT THE CLINTON ADMINISTRATION DIDN'T NEED TO PREPARE AN ENVIRONMENTAL IMPACT STATEMENT FOR THE TRADE PACT A REQUIREMENT THAT COULD HAVE DELAYED PASSAGE OF THE SINCEENACTED TREATY THE ADMINISTRATION ARGUED IN ITS SUPREME COURT BRIEF THAT ENACTMENT OF THE PACT MADE THE DISPUTE MOOT PUBLIC CITIZEN VS 9401110150 940111 COSTEEL MULLS US MINIMILL TORONTO COSTEEL INC SAID IT WILL CONDUCT A FEASIBILITY STUDY INTO BUILDING A WIREROD MINIMILL IN THE US MIDWEST AT A COST OF ABOUT 200 MILLION THE MILL WHICH WOULD BE COSTEEL'S FIFTH WOULD RAISE THE COMPANY'S ROD AND BAR CAPACITY BY ONE MILLION TONS TO ABOUT FIVE MILLION TONS A YEAR THE STEEL COMPANY SAID THE STUDY WILL BE COMPLETED BY THE FALL 9401110149 940111 CONSULTANTS TELL CAPTIVE AUDIENCE BEST WAYS TO SURVIVE HARD TIME BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THE PRINCIPALS AT FRANK A SWEENEY & ASSOCIATES A CONSULTING FIRM IN DEMAREST NJ WEREN'T VERY GOOD AT THEIR PREVIOUS JOBS THEY WERE SENT TO PRISON FOR MAIL FRAUD DRUG DEALING AND BANK ROBBERY BUT THEY DID GET VALUABLE EXPERIENCE IN THE SLAMMER AND LIKE MANY ANOTHER OUTPLACED WHITECOLLAR WORKER THEY ARE TRYING TO SELL THEIR EXPERTISE AS CONSULTANTS FOR 200 A CLIENT THEY GIVE ADVICE ON SERVING TIME OUR CONSULTANTS ARE GRADUATES OF THE FEDERAL PRISON SYSTEM THE FIRM BOASTS IN ADS IN USA TODAY AND THE NATIONAL LAW JOURNAL GOING TO FEDERAL PRISON FOR THE FIRST TIME WE WILL TELL YOU WHAT TO EXPECT AND HOW TO SURVIVE MR SWEENEY SAYS HE AND HIS TWO PARTNERS KNOW A LOT ABOUT THAT MR SWEENEY HIMSELF WHO IS 50 YEARS OLD HAS SERVED TIME IN 17 FEDERAL INSTITUTIONS ON TWO CONVICTIONS FOR MAIL FRAUD AND FIREARMS VIOLATIONS HE ALSO SPENT SEVEN YEARS IN NEW JERSEY PRISONS AFTER WOUNDING A POLICEMAN IN 1966 WITH A MACHINE GUN A HORRIBLE HORRIBLE ACCIDENT HE SAYS THE MOST RECENT CONVICTION FOUR YEARS AGO FOR MAIL FRAUD INVOLVED RUNNING MAILORDER ADS IN A GUN MAGAZINE OFFERING TO SELL EXOTIC GUNS HE DIDN'T OWN FRANK A SWEENEY & ASSOCIATES WAS LAUNCHED TWO MONTHS AGO MR SWEENEY SAYS HE WAS INSPIRED BY A NEWSPAPER STORY THAT QUOTED ONE OF THE LOS ANGELES POLICE SENTENCED TO JAIL IN THE RODNEY KING CASE AS BEING TERRIFIED OF WHAT WOULD HAPPEN TO HIM IN PRISON MR SWEENEY SAYS HIS KNOWLEDGE OF THE SYSTEM HELPS HIM ADVISE INDICTED CRIMINALS WHAT PRISON THEY ARE LIKELY TO GO TO AND WHAT LIFE THERE IS LIKE HE SAYS HE CAN HELP WRITE LETTERS TO ARRANGE TRANSFERS TO A PRISON CLOSER TO A PRISONER'S HOME WE ADVISE OUR CLIENTS HOW TO MANIPULATE THE BUREAU OF PRISONS SO THEY CAN LIVE AS COMFORTABLY AS POSSIBLE HE SAYS BUT MOSTLY HE PROMISES REASSURANCE ABOUT THE UNKNOWN WORLD THE CRIMINAL IS GOING TO ENTER THE BIGGEST FEAR IS UNFOUNDED HE SAYS NEVER ONCE DID I SEE HOMOSEXUAL RAPE IN FEDERAL PRISON HE SAYS BUT THERE IS DANGER OF RACIAL VIOLENCE WE TELL PEOPLE NOT TO USE RACIAL INVECTIVE HE SAYS THUS FAR BUSINESS HAS BEEN SLOW MR SWEENEY SAYS HE HAS HAD JUST 27 PAYING CUSTOMERS WHICH ISN'T NEARLY ENOUGH TO PAY FOR THE ADS HOWEVER HE SAYS HE HAS GOTTEN LETTERS FROM SEVERAL PRISONERS WANTING ADVICE ON HOW TO SET UP SIMILAR BUSINESSES WHEN THEY GET OUT 9401110148 940111 WHO'S NEWS RODMAN & RENSHAW OFFICIALS DISMISSED AS CHAIRMAN RESIGNS CHICAGO RODMAN & RENSHAW CAPITAL GROUP INC'S NEW MEXICOBASED MAJORITY OWNER SET ABOUT INSTALLING ITS OWN MANAGEMENT TEAM AT THE BROKERAGE HOUSE DISMISSING FOUR TOP OFFICIALS AND ACCEPTING THE RESIGNATION OF RODMAN'S CHAIRMAN AS WELL THE MANAGEMENT CHANGES RODMAN NOTED CAME AT THE REQUEST OF ABACO CASA DE BOLSA THE BROKERAGE UNIT OF ABACO GRUPO FINANCIERO SA DE CV THE HOUSECLEANING COMES AS LESS THAN A SURPRISE AFTER A PERIOD OF INTERNAL TURMOIL RODMAN LAST YEAR PUT ITSELF UP FOR POSSIBLE AUCTION AND IN LATE DECEMBER ABACO PAID 248 MILLION TO ACQUIRE AN ABOUT 51 STAKE IN THE REGIONAL CONCERN'S THROUGH A 1050ASHARE TENDER OFFER ABACO NOW CONTROLS A MAJORITY OF THE CHICAGO COMPANY'S BOARD SEATS AS PART OF THE ACQUISITION AGREEMENT CHAIRMAN KURT KARMIN A FORMER DREXEL BURNHAM LAMBERT SENIOR VICE PRESIDENT IN NOVEMBER HANDED OVER THE CHIEF EXECUTIVE OFFICER'S POST TO NORMAN MAINS THE COMPANY'S PRESIDENT YESTERDAY MR KARMIN CEDED THE CHAIRMAN'S JOB TO JORGE LANKENAU THE CHAIRMAN OF ABACO GRUPO FINANCIERO MR KARMIN WILL REMAIN AS AN ACCOUNT EXECUTIVE AND A BOARD MEMBER RODMAN SAID IN ADDITION A NUMBER OF OTHER TOP OFFICIALS WERE DISMISSED MR MAINS WHO HAD BEEN SERVING AS PRESIDENT CEO AND CHIEF OPERATING OFFICER EXECUTIVE VICE PRESIDENTS VICTOR CHIGAS AND MARK GRANT AND GREGORY QUNLIVAN WHO HAD BEEN SERVING AS SECRETARY GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT JOSEPH P SHANAHAN THE PRESIDENT OF ABACO'S US BROKERAGE UNIT ABACO INTERNATIONAL WAS NAMED A RODMAN VICE PRESIDENT WITH THE POWERS OF CHIEF EXECUTIVE OFFICER ON AN INTERIM BASIS THE COMPANY SAID IT WILL SEARCH OUTSIDE RODMAN FOR A NEW CEO AND CHIEF OPERATING OFFICER WHEN RODMAN & RENSHAW CAPITAL GROUP INC'S FORMER CHAIRMAN KURT KARMIN CEDED THE CHIEF EXECUTIVE OFFICER'S POST TO ANOTHER COMPANY OFFICIAL IN NOVEMBER THE ACTION WASN'T PART OF AN ACQUISITION AGREEMENT BY WHICH ABACO GRUPO FINANCIERO SA DE CV SUBSEQUENTLY ACQUIRED A 51 STAKE IN THE BROKERAGE HOUSE AN ARTICLE YESTERDAY INCORRECTLY SAID THE TWO DEVELOPMENTS WERE LINKED 9401110146 940111 WHO'S NEWS JMC GROUP INC JMC GROUP INC SAN DIEGO BRIAN J FINNERAN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER NEWLY CREATED POSITIONS AT THE MARKETER OF ANNUITIES AND OTHER INSURANCE PRODUCTS AND MUTUAL FUNDS HE ALSO WAS ELECTED A DIRECTOR SUCCEEDING PHILLIP SLOANE 52 YEARS OLD WHO RESIGNED MR FINNERAN 50 PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF THE COMPANY'S WHOLLY OWNED SUBSIDIARY JAMES MITCHELL & CO WHERE HE WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER ALSO NEW POSITIONS 9401110145 940111 INTERNATIONAL JAPAN'S POLITICAL REFORMS MOVE TOWARD SHOWDOWN TOKYO JAPAN'S RULING COALITION IS AIMING FOR A FINAL SHOWDOWN ON A PACKAGE OF POLITICAL REFORM BILLS NEXT WEEK A CABINET SPOKESMAN SAID MONDAY THAT LEADERS OF THE SEVENPARTY ALLIANCE AGREED TO PUSH FOR A VOTE ON THE PACKAGE IN THE UPPER HOUSE OF THE DIET ON JAN 19 TO MAKE THAT POSSIBLE THE PARTIES ON MONDAY OVERCAME NOISY OPPOSITION TO SET THE FINAL REFORM COMMITTEE HEARING FOR NEXT MONDAY THE BILLS THE TOP PRIORITY OF THE COALITION PASSED THE LOWER HOUSE OF THE DIET IN NOVEMBER BUT HAVE BEEN STALLED IN THE UPPER HOUSE EVER SINCE IN SETTING THE DEADLINE PRIME MINISTER MORIHIRO HOSOKAWA SEEMS MORE CONFIDENT OF WINNING APPROVAL OF THE DRASTIC OVERHAUL OF JAPAN'S ELECTORAL SYSTEM BUT THE CHANCES FOR PASSAGE REMAIN UNCLEAR EVEN SOME MEMBERS OF THE COALITION OPPOSE THE PROPOSALS MR HOSOKAWA AND HIS AIDES HAVE SAID THEY ARE WILLING TO MAKE SOME CHANGES IN THE LEGISLATION TO WIN SUPPORT CABINET OFFICIALS SAY THAT IF THE REFORM PACKAGE IS PASSED NEXT WEEK THEY WILL QUICKLY TURN THEIR ATTENTION TO NEW MEASURES TO STIMULATE JAPAN'S FLAGGING ECONOMY MR HOSOKAWA'S SPOKESMAN SAID THE GOVERNMENT WOULD TRY TO PREPARE SUCH A PACKAGE BY JAN 20 9401110144 940111 WHO'S NEWS EL PASO ELECTRIC CO EL PASO ELECTRIC CO EL PASO TEXAS CURTIS L HOSKINS CHIEF OPERATING OFFICER OF THIS ELECTRIC UTILITY WAS ALSO NAMED PRESIDENT THE 56YEAROLD MR HOSKINS SUCCEEDS DAVID H WIGGS JR 46 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER EL PASO ALSO NAMED EDUARDO A RODRIQUEZ 38 FORMERLY VICE PRESIDENT AS SENIOR VICE PRESIDENT AND GUILLERMO SILVA JR 40 FORMERLY ASSISTANT SECRETARY AS SECRETARY 9401110143 940111 ECONOMY EXPECTED TO GROW 3 IN 1994 SURVEY FINDS WASHINGTON THE US ECONOMY IS EXPECTED TO GROW 3 IN 1994 AND 27 IN 1995 ACCORDING TO THE AVERAGE OF FORECASTS MADE BY ECONOMISTS SURVEYED MONTHLY BY THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER IF THE FORECASTERS ARE CORRECT 1994 WILL BE THE BEST YEAR FOR THE ECONOMY SINCE 1988 WHEN IT GREW 39 IN CONTRAST THE BLUE CHIP ECONOMISTS ANTICIPATE THAT JAPAN'S ECONOMY WILL GROW JUST 13 IN 1994 AND GERMANY'S WILL GROW A MEAGER 07 THE LATEST 1994 FORECAST FOR THE US IS ABOUT A PERCENTAGE POINT HIGHER THAN THE ONE MADE IN DECEMBER STRENGTH IN HOUSING AUTOS AND OTHER CONSUMER DURABLES AS WELL AS BUSINESS SPENDING FOR PRODUCERS' DURABLE EQUIPMENT IS EXPECTED TO PERSIST IN THE NEW YEAR THE NEWSLETTER NOTED THE BLUE CHIP ECONOMISTS NOW ESTIMATE THAT THE ECONOMY GREW AT A 42 ANNUAL RATE IN THE FOURTH QUARTER AND WILL GROW AT A 3 PACE IN THE CURRENT QUARTER BUT THEY DON'T ANTICIPATE MUCH OF A DECLINE IN THE JOBLESS RATE PREDICTING THAT UNEMPLOYMENT LAST MEASURED AT 64 OF THE WORK FORCE WILL AVERAGE 64 THIS YEAR AND 62 NEXT THE FIGURES ARE ADJUSTED FOR INFLATION THE FORECASTERS EXPECT CONSUMER PRICES TO RISE 28 IN 1994 AND 33 IN 1995 THE NEW BLUE CHIP ECONOMIC INDICATORS FORECAST THAT THE US ECONOMY WILL GROW 3 IN 1994 AFTER INFLATION IS ONETENTH OF A PERCENTAGE POINT HIGHER THAN LAST MONTH'S NOT A PERCENTAGE POINT HIGHER AS REPORTED IN AN ARTICLE YESTERDAY 9401110142 940111 POLITICS & POLICY US UKRAINE AND RUSSIA REACH ACCORD ON DISMANTLING KIEV'S NUCLEAR ARSENAL BY MICHAEL K FRISBY AND MARK M NELSON STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS PRESIDENT CLINTON ANNOUNCED AN AGREEMENT TO DISMANTLE THE NUCLEAR ARSENAL OF UKRAINE TAKING A STEP TOWARD RESOLVING ONE OF THE MOST PERILOUS SECURITY PROBLEMS LEFT FROM THE COLD WAR MARKING A MAJOR TRIUMPH OF HIS NINEDAY EUROPEAN TRIP MR CLINTON SAID THE DEAL SIGNALS A NEW ERA IN OUR RELATIONSHIP WITH UKRAINE PRESIDENT CLINTON RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK WILL SIGN THE AGREEMENT IN MOSCOW FRIDAY HOWEVER THERE WERE SIGNS THAT UKRAINE'S PARLIAMENT WHICH HAS BLOCKED DISARMAMENT INITIATIVES OVER THE PAST TWO YEARS COULD FIGHT THIS AGREEMENT AS WELL UNDER THE ARRANGEMENT THE US WILL PURCHASE URANIUM FROM UKRAINE AND ALSO PROVIDE THE COUNTRY WITH ECONOMIC ASSISTANCE WHILE THE WEAPONS WILL BE SHIPPED TO RUSSIA TO BE DESTROYED THE DEAL IS WORTH MORE THAN 1 BILLION TO UKRAINE COVERING URANIUM PURCHASES AND ECONOMIC ASSISTANCE CLINTON AIDES SAID MOST OF THE COSTS WOULD BE OFFSET WHEN THE US ENRICHMENT CORP A QUASIGOVERNMENTAL ENTITY PURCHASES THE HIGHLY ENRICHED URANIUM AND SELLS IT UKRAINE MUST MEET THE OBLIGATIONS OF A 1991 USSOVIET AGREEMENT TO REDUCE LONGRANGE MISSILES AND MUST DISMANTLE THEM WITHIN SEVEN YEARS BUT CLINTON AIDES PRIVATELY ACKNOWLEDGED THAT THEY HOPE THE TIMETABLE WILL BE SPEEDED UP PARTICULARLY FOR THE MOST DANGEROUS WEAPONS THE AGREEMENT COVERS 176 INTERCONTINENTAL NUCLEAR MISSILES AND ABOUT 1500 WARHEADS THAT WERE AIMED AT THE US AS WELL AS ANOTHER 300 WARHEADS FROM AIRLAUNCHED CRUISE MISSILES AND BOMBERS SECRETARY OF STATE WARREN CHRISTOPHER SAID THE AGREEMENT WAS CLEARLY ONE OF THE MOST IMPORTANT NONPROLIFERATION STEPS THAT HAS BEEN TAKEN IN YEARS THE AGREEMENT PROVIDES UKRAINE WITH STANDARD SECURITY GUARANTEES FOR COUNTRIES THAT GIVE UP THEIR NUCLEAR WEAPONS AND PROMISES EXTENSIVE US ECONOMIC ADVICE AND AID THE US HAS ALREADY AGREED TO PROVIDE 175 MILLION IN AID FOR HELPING UKRAINE DISMANTLE NUCLEAR WEAPONS AS WELL AS 155 MILLION IN ECONOMIC ASSISTANCE A SENIOR STATE DEPARTMENT OFFICIAL SAID THE US WOULD CONSIDER RAISING THE AMOUNT OF ECONOMIC ASSISTANCE IF UKRAINE DEVELOPED A VIABLE ECONOMIC REFORM PLAN US OFFICIALS SAID THE MAIN SIGNIFICANCE OF THE DEAL MAY BE TO GIVE UKRAINE A MORE STABLE AND AFFORDABLE SOURCE OF ENERGY WHICH NOW COMES MAINLY FROM RUSSIA UPGRADING THE COUNTRY'S CHERNOBYLSTYLE NUCLEAR REACTORS AND REPROCESSING NUCLEAR FUEL FOR USE IN THE CIVIL ENERGY PROJECTS IS A MAIN FEATURE OF THE AGREEMENT THE REMOVAL OF THE MISSILES FROM UKRAINE WOULD SOOTHE A STRATEGIC HEADACHE OF GLOBAL PROPORTIONS BUT IMPLEMENTATION OF THE ACCORD IS STILL A QUESTION WHILE THERE ARE CONSIDERABLE ECONOMIC INCENTIVES FOR UKRAINE IN THE DEAL MANY MEMBERS OF THE COUNTRY'S PARLIAMENT SAY THAT LOSING THE WEAPONS WILL LEAVE UKRAINE VULNERABLE TO RUSSIA AT A TIME WHEN NATIONALISM THERE IS ON THE RISE EVERY PREVIOUS ATTEMPT TO REACH AGREEMENT ON THE ISSUE HAS BEEN STYMIED BY THE PARLIAMENT MR CLINTON SAID PRESIDENT KRAVCHUK HAS SHOWN GREAT COURAGE IN THE LAST FEW MONTHS IN WORKING THROUGH THIS VERY DIFFICULT AND COMPLEX SET OF NEGOTIATIONS WITH US WE HAVE NO REASON TO DOUBT THE ABILITY OF THE PRESIDENT TO KEEP THE COMMITMENT THAT HE IS PREPARED TO MAKE BUT SOME OFFICIALS IN UKRAINE WERE QUESTIONING MR KRAVCHUK'S AUTHORITY TO MAKE THE AGREEMENTS DMYTRO PAVLYCHKO CHAIRMAN OF THE PARLIAMENT'S FOREIGN AFFAIRS COMMITTEE SAID WE MUST WAIT AND SEE WHAT WILL BE AGREED TO MR PAVLYCHKO SAID THAT THE QUESTION OF NUCLEAR WEAPONS CAN'T BE DECIDED IN ONE DOCUMENT AND ADDED THAT IF MR KRAVCHUK AGREED TO ELIMINATE UKRAINE'S NUCLEAR WEAPONS IMMEDIATELY THE PARLIAMENT WILL GO BACK INTO SESSION ON THE 20TH AND BEGIN TO THROW HIM OUT OPPOSITION LEADER VYACHESLAV CHORNOVIL TOLD THE INDEPENDENT NEWS AGENCY INTERFAXUKRAINE THAT MR KRAVCHUK HAS NO AUTHORITY TO SIGN INTERSTATE DOCUMENTS CONCERNING NUCLEAR WEAPONS AND THAT ANY AGREEMENTS HE SIGNS IN MOSCOW WOULD HAVE NO LEGAL FORCE EXPERTS ON THE REGION WARN THAT WITH UKRAINE'S ECONOMY NEAR COLLAPSE THE SITUATION THERE IS ANYTHING BUT PREDICTABLE INFLATION HAS RISEN TO 50 A MONTH AND ATTEMPTS TO PRIVATIZE THE COUNTRY'S STATEOWNED ENTERPRISES HAVE STALLED THE DEAL ALSO FACES OPPOSITION IN RUSSIA MANY RUSSIANS CONSIDER UKRAINE THE BIRTHPLACE OF THE RUSSIAN EMPIRE AND HAVE NEVER ACCEPTED THE SEPARATION OF THE COUNTRY WITH ITS BELOVED BLACK SEA RESORTS FROM RUSSIA THE BLACK SEA FLEET IS ANOTHER PROBLEM AN AGREEMENT TO SPLIT IT BETWEEN THE TWO COUNTRIES HAS PROVEN NEARLY UNENFORCEABLE A LOT OF WORRIES REMAIN SAID GABRIEL SCHOENFELD EDITOR OF POSTSOVIET PROSPECTS A RESEARCH JOURNAL OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON UKRAINE'S NEIGHBORS SAY THAT REMOVAL OF WEAPONS COULD ACTUALLY MAKE SOME OF THE COUNTRY'S SECURITY PROBLEMS WORSE BECAUSE IT COULD MAKE THE RUSSIANS MORE BOLD IN PRESSURING THE UKRAINIANS FOR CONCESSIONS ON ISSUES OF MUTUAL CONCERN THESE INCLUDE THE LARGE RUSSIAN POPULATION NUMBERING ABOUT 114 MILLION PEOPLE WHO MAKE UP A MAJORITY IN THE EASTERN PARTS OF THE COUNTRY SOME RUSSIANS THERE ARE PRESSING TO REUNITE WITH RUSSIA POLISH OFFICIALS SAY THE SUCCESS OF THE DEAL WILL DEPEND ON DEEP INVOLVEMENT OF THE US AND WESTERN EUROPE IN GUARANTEEING UKRAINE'S SECURITY AND IT REMAINS TO BE SEEN WHETHER THE PROMISES UNDER THIS DEAL ARE STRONG ENOUGH TO ACHIEVE THAT ALL THE US IS INTERESTED IN ARE THOSE DAMN MISSILES JERZY MILEWSKI FIRST DEPUTY DEFENSE MINISTER OF POLAND SAID IN A RECENT INTERVIEW TO CHANGE THE SITUATION IN UKRAINE THE WEST WILL HAVE TO MAKE IT CLEAR THAT IT CONSIDERS THE SOVEREIGNTY OF UKRAINE INVIOLABLE NATALIA A FEDUSCHAK IN KIEV CONTRIBUTED TO THIS ARTICLE 9401110141 940111 INTERNATIONAL WESTERN GERMAN ECONOMY HAD 19 1993 GDP DROP FRANKFURT WESTERN GERMAN GROSS DOMESTIC PRODUCT DROPPED AN INFLATIONADJUSTED 19 IN 1993 CONFIRMING EXPECTATIONS OF THE DEEPEST ANNUAL CONTRACTION SINCE WESTERN GERMANY'S POSTWAR RECONSTRUCTION LEAKED FIGURES LATER CONFIRMED BY THE FEDERAL STATISTICS OFFICE ALSO SHOWED EASTERN GERMANY'S REGIONAL GDP GREW 63 LAST YEAR CONTINUING RECOVERY FROM ITS POSTUNIFICATION COLLAPSE IN 1990 GDP MEASURES TOTAL OUTPUT OF GOODS AND SERVICES EXCLUDING FOREIGN INCOME FOR GERMANY AS A WHOLE THE COUNTRY'S RICHER WESTERN HALF STILL ACCOUNTED FOR 91 OF NOMINAL GDP TOTALING 31 TRILLION MARKS 1795 TRILLION IN 1993 WHEN ADJUSTED FOR INFLATION TOTAL GERMAN OUTPUT SHOWED A 13 DECLINE FROM A YEAR EARLIER THE WESTERN GERMAN FULLYEAR GDP DECLINE WHICH EXCEEDED THE 1975 POSTWAR RECORD CONTRACTION OF 15 COINCIDED WITH ECONOMISTS' EXPECTATIONS THE STATISTICS OFFICE HAS YET TO RELEASE SEPARATE DATA FOR FOURTHQUARTER GDP 9401110140 940111 UAW STRIKE THREAT WARNS GM OF TRUCK PLANTS' ISSUES DETROIT A THREATENED STRIKE AT GENERAL MOTORS CORP'S ASSEMBLY PLANT IN SHREVEPORT LA IS DESIGNED TO SEND THE MESSAGE THAT GM MUST RESOLVE DISPUTES AT SEVERAL OTHER TRUCK PLANTS THAT ARE HOLDING UP LOCAL CONTRACTS A TOP UNITED AUTO WORKERS OFFICIAL SAID STEPHEN P YOKICH CALLED THE STRIKE THREAT A SHOT ACROSS THE BOWS FOR THE ENTIRE TRUCK DIVISION AFTER THE UAW HAMMERS OUT LOCAL AGREEMENTS AT THE TRUCK PLANTS HE SAID THE UNION WILL TURN UP THE PRESSURE ON GM'S PARTSMAKING OPERATIONS WHICH ARE THREATENING UAW WORKERS WITH JOB LOSSES UNLESS THEY MAKE CONCESSIONS LAST WEEK THE UAW FORMALLY NOTIFIED GM THAT IT MIGHT STRIKE SHREVEPORT AS EARLY AS 10 AM TODAY WHICH WOULD CUT PRODUCTION OF THE HOTSELLING NEW COMPACT PICKUP TRUCK BUILT THERE GM OFFICIALS HAVE SAID THEY HOPE THE DISPUTE WILL BE RESOLVED WITHOUT A STRIKE COMPANY AND UNION BARGAINERS WERE MEETING YESTERDAY TO RESOLVE THE DISPUTE MR YOKICH SAID SHREVEPORT WORKERS ARE UPSET BY GM'S EFFORTS TO CUT JOBS ON THE ASSEMBLY LINE TRYING TO FORCE A SPEEDUP HE SAID THE UNION ALSO WAS RILED BY GM'S ATTEMPT TO OUTSOURCE TO OUTSIDE CONTRACTORS WORK THAT HAD BEEN PERFORMED IN THE PLANT BY UAWREPRESENTED WORKERS 9401110139 940111 REVIEW & OUTLOOK EDITORIAL ON ETHICS A CONGRESSIONAL RESPONSIBILITY A GOOD RULE IN POLITICS IS THAT WHEN BARNEY FRANK AND NEWT GINGRICH AGREE ON SOMETHING IT'S TIME FOR SECOND THOUGHTS SO WITH EVERYONE SHOUTING FOR AN INDEPENDENT COUNSEL TO INVESTIGATE PRESIDENT AND HILLARY CLINTON'S WHITEWATER MESS WE'D LIKE TO EXPLAIN OUR DOUBTS WE BOW TO NO ONE IN OUR CONCERN OVER WHITEWATER AND MORE BROADLY OVER THE ARKANSAS POLITICAL MORES THAT HAVE MIGRATED TO WASHINGTON SURELY THIS IS A SUBJECT THAT NEEDS TO BE INVESTIGATED BY SOMEONE WITH THE POWER OF SUBPOENA THE PRESS IS DOING A GOOD JOB ON WHITEWATER AT THE MOMENT BUT CANNOT SUBPOENA DOCUMENTS OR FORCE PEOPLE TO TESTIFY UNDER OATH WE ALSO UNDERSTAND WHY GIVEN THE CURRENT STATE OF OUR POLITICAL CULTURE PEOPLE CLAMOR FOR AN INDEPENDENT ARCHANGEL TO SOLVE POLITICAL PROBLEMS BUT INDEPENDENT COUNSELS ARE TROUBLING PRECISELY BECAUSE THEY HAVE BECOME A DEVICE FOR LETTING OUR POLITICAL INSTITUTIONS SHIRK THEIR CONSTITUTIONAL RESPONSIBILITIES IN PARTICULAR WHERE IS THE CONGRESS THE WHITEWATER EPISODE IS MADE TO ORDER FOR CONGRESS'S CONSTITUTIONAL ROLE OF OVERSIGHT YET THE BANKING COMMITTEES THAT WERE ALL OVER NEIL BUSH AND CHARLEY KEATING ARE SUDDENLY SILENT ABOUT A FAILED S&L THAT WAS OWNED BY A BUSINESS PARTNER OF THE PRESIDENT AND PAID HIS WIFE 2000 A MONTH FOR LEGAL WORK SURELY CONGRESS OUGHT TO BE PLAYING ITS ROLE OF EDUCATING THE PUBLIC IT'S FAIR OF COURSE TO ASK WHO IN CONGRESS HAS THE CREDIBILITY TO DO IT THE SIGHT OF SENATE BANKING CHAIRMAN AND KEATING FIVER DON RIEGLE INVESTIGATING ANYONE IS WE ADMIT FODDER FOR SATURDAY NIGHT LIVE THE JUDICIARY COMMITTEE COULD EXPLORE MR CLINTON'S FIRING OF 93 US ATTORNEYS LAST MARCH AN ACT THAT LET HIM APPOINT A CRONY IN LITTLE ROCK BUT THIS WOULD AGAIN HIGHLIGHT THE ANITA HILL GANG YET SOMETIMES CONGRESS HAS BEEN UP TO THE JOB HENRY GONZALEZ'S KEATING FIVE HEARINGS HELPED THE PUBLIC UNDERSTAND WHAT HAPPENED TO THE S&LS AMPLIFIED LATER BY SPECIAL COUNSEL BOB BENNETT'S ETHICS PROBE FOR THAT MATTER THERE IS PLENTY OF PRECEDENT RANGING FROM MR BENNETT TO ARTHUR LIMAN AND BACK AT LEAST TO FERDINAND PECORA FOR CONGRESS TO APPOINT ITS OWN SPECIAL COUNSEL NOT ONLY PROVIDING INVESTIGATORY EXPERTISE BUT ABSORBING POLITICAL HEAT ANOTHER CONSTITUTIONAL OPTION FIRST SUGGESTED BY SEN LAUCH FAIRCLOTH AND SINCE PICKED UP BY BOTH BOB DOLE AND JIM LEACH IS FOR THE ATTORNEY GENERAL TO APPOINT A SPECIAL COUNSEL WITHIN THE EXECUTIVE BRANCH INDEED WE OURSELVES SUGGESTED THIS AFTER VINCENT FOSTER'S DEATH IF ONLY TO ASSIGN RESPONSIBILITY AND ACCOUNTABILITY FOR ITS INVESTIGATION THIS IS DIFFERENT FROM THE INDEPENDENT COUNSEL LAW BECAUSE SUCH A SPECIAL COUNSEL REMAINS ACCOUNTABLE TO THE ATTORNEY GENERAL A PRESIDENT COULD ALWAYS FIRE HIM A THREAT THAT MAKES THE COUNSEL ACCOUNTABLE TO SOMEONE BUT THIS THREAT CANNOT BE CARRIED OUT WITHOUT A HEAVY POLITICAL PRICE AS RICHARD NIXON LEARNED WHEN HE DISMISSED ARCHIBALD COX DURING WATERGATE WASHINGTON HAS SEEN A LOT OF SCANDALS OVER 200 YEARS AFTER ALL AND THE COUNTRY SOMEHOW COPED BEFORE THE INDEPENDENT COUNSEL LAW WAS PASSED IN 1978 TEAPOT DOME AND WATERGATE WERE BOTH EXPOSED WITHOUT SUCH A LAW THE PECORA HEARINGS IN THE 1930S PROBED FINANCIAL AND POLITICAL TIES THAT EMBARRASSED BOTH REPUBLICANS AND DEMOCRATS ANY PEEK AT HISTORY SHOWS THE SYSTEM WORKED BETTER BEFORE THE INDEPENDENT COUNSEL LAW WAS ENACTED THIS IS BECAUSE THE INSTITUTION IS AN INVITATION TO DODGE RESPONSIBILITY IF INDEED THAT IS NOT ITS VERY PURPOSE ALONG THE WAY IT MANAGES A FATAL CONFUSION OF THE ROLES OF EDUCATING THE PUBLIC AND ENFORCING THE LAW WHEN DEMOCRATS IN CONGRESS LOST THEIR SHOWDOWN WITH OLLIE NORTH IN PUBLIC HEARINGS THEY TRIED TO CRIMINALIZE THEIR DIFFERENCES VIA LAWRENCE WALSH BECAUSE HE HAS BEEN OUTSIDE POLITICAL CONTROL MR WALSH COULD TAKE SIX YEARS SPEND 35 MILLION AND STILL FACE NO DISCIPLINE THE COURTS ARE EVEN NOW CLEANING UP AFTER HIS BLUNDERS BY AWARDING LEGAL FEES TO INDIVIDUALS MR WALSH HAS UNFAIRLY HARASSED WE NOW SEEM ON COURSE TO HAVE THIS LAW REINSTATED WITHOUT EVEN AS BARNEY FRANK HOPES A VOTE ON WHETHER MISCREANT CONGRESSMEN SHOULD FACE A SIMILAR INSTITUTION THEN MS RENO CAN APPOINT A COUNSEL AND WASH HER HANDS OF THE MATTER DEMOCRATS IN CONGRESS WILL ALSO CLAIM THEY'VE DONE EVERYTHING THEY COULD INSULATING THEMSELVES FROM ANY RESPONSIBILITY BEFORE THE VOTER A WHITEWATER INVESTIGATOR MIGHT OF COURSE TURN INTO ANOTHER LAWRENCE WALSH HE MIGHT EVEN FIND A CRIME WORSE THAN ACCEPTING A SECURITY FENCE HE MIGHT ALSO SWALLOW ALL OF THE DOCUMENTS AND SILENCE THE ISSUE FOR YEARS IF CONGRESS IS TO CREATE SOME INDEPENDENT BODY LET IT BE ONE WORTHY OF THE TASK WHITEWATER AFTER ALL IS MERELY THE LATEST EPISODE IN THE S&L DISASTER THE HOUSE POST OFFICE THE ONGOING ROSTENKOWSKI PROBE THE HINTS OF POLITICAL INFLUENCE VIA BCCI OF WHICH WE MAY LEARN A GREAT DEAL MORE THROUGH THE SETTLEMENT BOB MORGENTHAU & CO HAVE WON FROM ABU DHABI WHY NOT A SPECIAL COMMISSION WITH THE POWER OF SUBPOENA AND PUBLIC HEARINGS TO EXPLORE THE CORRUPTION OF THE POLITICAL PROCESS OUR CANDIDATE TO HEAD IT WOULD BE RETIRED SUPREME COURT JUSTICE WHIZZER WHITE THE POINT IS THAT WHILE LAWS MAY HAVE INDEED BEEN BROKEN IN WHITEWATER THE MORE IMPORTANT POINT IS TO FIND OUT WHAT HAPPENED AN INDEPENDENT COUNSEL PORING OVER THE STATUTE BOOKS LOOKING FOR A CRIME THAT MIGHT FIT THE FACTS THIS IS A TRAP INSTEAD REPUBLICANS SHOULD HAVE THE GUMPTION TO FORCE THE DEMOCRATIC LEADERSHIP TO FACE UP TO A FULL AND PUBLIC INVESTIGATION BY OBSTRUCTING THE WORK OF CONGRESS IF THAT PROVES NECESSARY A COMMITTED MINORITY CAN FORCE A CONGRESS TO DO ITS DUTY THE DEMOCRATS MAY OBJECT JUST AS JANET RENO MAY PROVE SHE LACKS THE INDEPENDENCE TO INVESTIGATE HER PRESIDENT BUT THE FOUNDERS PROVIDED A READY SOLUTION TO SUCH A POLITICAL IMPASSE THE SOLUTION IS DEMOCRACY AND AS CONGRESS VERY WELL UNDERSTANDS THE NEXT ELECTIONS ARE SCHEDULED FOR NOVEMBER 9401110138 940111 INTERNATIONAL ISRAEL AND PLO RESUME TALKS DELAY IS SEEN BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM NEGOTIATIONS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION RESUMED IN THE EGYPTIAN RESORT TOWN OF TABA BUT ISRAELI FOREIGN MINISTER SHIMON PERES SAID THE TWO SIDES MIGHT NOT MEET THE APRIL 13 DEADLINE SET FOR THE FULL WITHDRAWAL OF ISRAELI TROOPS FROM THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO PALESTINIAN CHIEF DELEGATE NABIL SHAATH WAS MORE OPTIMISTIC DECLARING THAT AN AGREEMENT COULD BE REACHED WITHIN TWO TO THREE WEEKS THE LATEST ROUND OF TALKS COMES TWO WEEKS AFTER NEGOTIATIONS BETWEEN ISRAEL AND THE PLO BROKE DOWN IN CAIRO THE ISRAELI WITHDRAWAL FROM JERICHO AND GAZA WAS TO HAVE BEGUN DEC 13 BUT HAS BEEN HELD UP BY DIFFERENCES OVER DETAILS BEFORE THE LATEST ROUND OF TALKS BEGAN YESTERDAY ISRAELI PRIME MINISTER YITZHAK RABIN TOLD HIS CABINET THAT THE PALESTINIANS MUST STICK TO THE UNDERSTANDINGS REACHED IN CAIRO THAT THE SIZE OF THE SELFRULE AREA IN JERICHO WILL BE 22 SQUARE MILES AND THAT ISRAEL AND THE PALESTINIANS WILL JOINTLY CONTROL THE BORDER CROSSINGS INTO THE AREA UNDER PALESTINIAN SELFRULE EVEN IF THE PALESTINIAN TEAM AGREES TO THE ISRAELI CONDITION ISRAELI OFFICIALS SAID THAT MAJOR ISSUES SUCH AS HOW TO PROTECT THE JEWISH SETTLEMENTS IN GAZA HAVEN'T BEEN DEALT WITH AND THE AGREEMENT WON'T BE REACHED AS QUICKLY AS ISRAELI NEGOTIATORS HAD HOPED THE SUBDUED ATMOSPHERE IN JERUSALEM WAS REFLECTED BY MR PERES A CONSTANT CHAMPION OF THE ISRAELPLO ACCORD SINCE IT WAS SIGNED IN SEPTEMBER ON THE WHITE HOUSE LAWN SOUNDING UNCHARACTERISTICALLY PESSIMISTIC HE SAID YESTERDAY THAT ISRAEL WOULD TRY TO MEET THE APRIL 13 DEADLINE BUT INSISTED THAT UNDER THE ACCORD THE FOURMONTH IMPLEMENTATION PERIOD ISN'T SET TO BEGIN UNTIL ISRAEL AND THE PLO SIGN A DETAILED WITHDRAWAL AGREEMENT HE SAID FINISHING THE WITHDRAWAL ON TIME ALSO DEPENDS ON THE PALESTINIAN NEGOTIATING POSITIONS PLO NEGOTIATOR MR SHAATH INSISTED THAT THE APRIL 13 DEADLINE MUST BE MET IF WE'RE GOING TO PLAY HAVOC WITH THIS DATE WE ARE GOING TO PLAY HAVOC WITH THE WHOLE AGREEMENT MR SHAATH SAID SUPPORT FOR THE ACCORD AMONG ISRAELIS AND PALESTINIANS HAS DROPPED SIGNIFICANTLY AS VIOLENCE IN THE OCCUPIED TERRITORIES CONTINUED AND THE NEGOTIATIONS APPEARED DEADLOCKED OVER SECURITY ISSUES ON MONDAY RESIDENTS OF THE JEWISH SETTLEMENT NAAMA IN THE JORDAN VALLEY PREVENTED VEHICLES FROM REACHING THE ALLENBY BRIDGE CROSSING TO JORDAN FOR AN HOUR TO PROTEST REPORTS THAT THE SIZE OF TERRITORY UNDER SELFRULE IN JERICHO WILL ISOLATE THEM 9401110137 940111 TECHNOLOGY ROCHE AND WELLCOME UNITS' AIDS DRUG GETS APPROVAL WASHINGTON TWO DRUG MAKERS RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE TO USE A DRUG AS A PREVENTIVE TREATMENT AGAINST PNEUMONIA IN AIDS PATIENTS AND IN OTHERS WITH SUPPRESSED IMMUNE SYSTEMS HOFFMANNLA ROCHE INC AND BURROUGHS WELLCOME CO WORKED TOGETHER TO WIN CLEARANCE FOR THE NEW USAGE OF TRIMETHOPRIMSULFAMETHOXAZOLE AN ANTIBACTERIAL DRUG THAT'S ALREADY ON THE MARKET TO TREAT PNEUMOCYSTIS CARINII PNEUMONIA OR PCP THE MOST COMMON OPPORTUNISTIC INFECTION FOR PEOPLE WITH AIDS THE ILLNESS IS ONE OF THE MAJOR CAUSES OF DEATH IN AIDS PATIENTS JOINT CLINICAL STUDIES SHOWED THE DRUG COULD HELP PREVENT PCP FROM DEVELOPING ESPECIALLY IN PATIENTS WITH HIV THE VIRUS THAT CAUSES AIDS HOFFMANNLA ROCHE WILL MARKET ITS BACTRIM BRAND OF THE FORMULATION WHILE BURROUGHS WELLCOME WILL MARKET THE DRUG AS SEPTRA HOFFMANNLA ROCHE BASED IN NUTLEY NJ IS A UNIT OF ROCHE HOLDING LTD A PHARMACEUTICAL AND HEALTHCARE CONCERN BASED IN BASEL SWITZERLAND BURROUGHS WELLCOME BASED IN RESEARCH TRIANGLE PARK NC IS A UNIT OF WELLCOME PLC OF LONDON 9401110136 940111 FINANCING BUSINESS MAXUS ENERGY CORP MAXUS ENERGY CORP DALLAS ANNOUNCED A PUBLIC OFFERING OF 60 MILLION OF ITS 9 3/8 SERIES B NOTES DUE NOV 1 2003 NET PROCEEDS FROM THE SALE WILL BE ADDED TO WORKING CAPITAL AND USED FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF 58 MILLION OF MAXUS'S MEDIUMTERM NOTES MATURING THIS APRIL AND BEARING INTEREST RATES RANGING FROM 457 TO 485 CS FIRST BOSTON IS UNDERWRITER FOR THE OFFERING 9401110135 940104 CRIME THE PEOPLE WANT REVENGE BY PAUL JOHNSON BRITAIN AND THE US BETWEEN THEM CREATED THE MODERN CONCEPT OF DEMOCRACY BUT THERE ARE TIMES WHEN I WONDER WHETHER DEMOCRACY ACTUALLY WORKS IN EITHER COUNTRY MY DOUBTS BECOME MOST PRONOUNCED WHEN THE TOPICS OF CRIME AND ITS PUNISHMENT COME UP AND I COMPARE HOW THEY ARE ACTUALLY DEALT WITH BY THE AUTHORITIES WITH WHAT THE PUBLIC WANTS DONE WANTS IS THE KEY WORD FOR THE ESSENCE OF DEMOCRACY IS NOT ONEPERSONONEVOTE MOST AFRICANS HAVE GOT THAT AND WHAT GOOD DOES IT DO THEM NOR IS THE ESSENTIAL QUESTION WHETHER YOU HAVE A PRESIDENCY OR A CONSTITUTIONAL MONARCHY AND A CONGRESS OR A PARLIAMENT THESE ARE DETAILS WHAT MAKES DEMOCRACY REAL IS A WORKING SYSTEM THAT TRANSLATES THE REASONABLE WISHES OF THE MASS OF THE PEOPLE INTO THE ACTUAL PERFORMANCE OF GOVERNMENT CYNICS WILL SAY THAT NO SUCH SYSTEM DOES OR CAN EXIST BUT THAT IS NONSENSE DURING THE 19TH CENTURY AND FOR MOST OF THE 20TH THE US CONGRESS AND THE BRITISH PARLIAMENT WERE REMARKABLY EFFECTIVE IN REFORMING AND IMPROVING INSTITUTIONS IN ACCORDANCE WITH THE WISHES OF THE PEOPLE THAT IS WHY BOTH SOCIETIES PROVED SO STABLE AND VIRTUALLY IMPERVIOUS TO THE REVOLUTIONARY SHOCKS THAT MADE THE MODERN HISTORY OF SO MANY OTHER ADVANCED COUNTRIES UNHAPPY NOW DOUBTS HAVE ARISEN AND THEY ARE PARTICULARLY NAGGING IN THE AREA OF LAW AND ORDER GOVERNMENTS HAVE A FUNDAMENTAL OBLIGATION TO DO THREE THINGS MANAGE A COUNTRY'S EXTERNAL DEFENSES UPHOLD INTERNAL ORDER AND MAINTAIN AN HONEST CURRENCY OF COURSE THEY CAN DO MANY OTHER THINGS BUT THESE ARE THE THREE ESSENTIALS BECAUSE ONLY GOVERNMENT CAN DO THEM THE MORE GOVERNMENTS ATTEMPT TO DO THE MORE LIKELY IT IS THAT ONE OR ANOTHER OF THESE BASIC ROLES WILL BE BADLY CARRIED OUT USUALLY IT IS THE THIRD THAT IS FORGOTTEN FOR ACTIVIST GOVERNMENTS TEND TO PRODUCE INFLATION AND HYPERACTIVE GOVERNMENTS AS WE SEE IN LATIN AMERICA PRODUCE HYPERINFLATION HOWEVER EVEN IN STEADY DEMOCRACIES LIKE THE US AND BRITAIN WHERE INFLATION HAS NEVER GOTTEN OUT OF HAND AND IS IN FACT WELL UNDER CONTROL AT PRESENT THE FEELING IS GROWING THAT GOVERNMENT NOW PERFORMS ITS SECOND FUNCTION VERY BADLY INDEED THROUGHOUT THIS CENTURY GOVERNMENTS IN BOTH COUNTRIES HAVE SYSTEMATICALLY TAKEN ON RESPONSIBILITIES FOR WELFARE HEALTH EDUCATION HOUSING AND EVEN CULTURE THAT WERE HITHERTO DISCHARGED BY CITIZENS THEMSELVES AT THE SAME TIME A REVERSE PROCESS HAS BEEN TAKING PLACE IN THE PROTECTION OF LIFE AND PROPERTY GOVERNMENT HAS BECOME SO INEFFECTUAL IN THIS FIELD THAT INDIVIDUALS HAVE TO ACT ON THEIR OWN BEHALF INNERCITY APARTMENTS HAVE BECOME MINIATURE FORTRESSES PRIVATE SECURITY IS ONE OF THE FASTESTGROWING INDUSTRIES IN BOTH COUNTRIES IN THE US THE NUMBER OF WOMEN CARRYING DEFENSIVE WEAPONS CHIEFLY HANDGUNS HAS RISEN DRAMATICALLY A UBIQUITOUS NEW INSTITUTION IN BRITAIN ALREADY COMMON IN THE US IS NEIGHBORHOOD WATCH A SCHEME WHEREBY NEIGHBORS BAND TOGETHER TO PROTECT EACH OTHER'S PROPERTY VIGILANTISM INDEED IS NOW MAKING ITS APPEARANCE IN BRITAIN FOR THE FIRST TIME IN CENTURIES TO STRONG PUBLIC APPROVAL AND IN THE US CITIZENS WHO GUN DOWN HABITUAL CRIMINALS ARE ACQUITTED BY JURIES AND BECOME POPULAR HEROES BEHIND THIS GRIM RELIANCE ON SELFPROTECTION AND CONTEMPTUOUS CYNICISM FOR THE EFFORTS OF GOVERNMENT LIE TWO CONVICTIONS BURNED INTO THE PUBLIC CONSCIOUSNESS THE FIRST IS A UNIVERSAL PERCEPTION THAT CRIME NOT LEAST VIOLENT CRIME HAS INCREASED TO THE POINT WHERE IT IS EFFECTIVELY OUT OF THE CONTROL OF AUTHORITY ACADEMIC CRIMINOLOGISTS WIELDING BATTERIES OF STATISTICS SOMETIMES ARGUE THAT THIS PUBLIC PERCEPTION IS FALSE AND BASED ON WHAT THEY SNEERINGLY TERM ANECDOTAL EVIDENCE BUT WHAT OTHER KIND OF EVIDENCE DO WE HAVE TO GO BY FOR OUR KNOWLEDGE OF MOST THINGS PEOPLE FORM CONCLUSIONS BY WHAT HAPPENS TO THEM THEIR FAMILIES FRIENDS AND NEIGHBORS AND IF ALL VIRTUALLY WITHOUT EXCEPTION ARE VICTIMS OF CRIME THEN THEY UNDERSTANDABLY CONCLUDE THAT THE BALANCE OF ADVANTAGE HAS DECISIVELY SHIFTED TO THE CRIMINAL THE STATISTICS AS IT HAPPENS BEAR OUT THIS CONCLUSION COMMENTING ON THEM THE CHIEF CONSTABLE OF ONE OF BRITAIN'S LARGEST POLICE AUTHORITIES RECENTLY STATED FLATLY THAT CRIME NOW PAYS IN BRITAIN SURELY THIS IS ONE REASON WHY THE NUMBER OF CRIMINALS PROFESSIONAL AND AMATEUR IS RISING IT IS PROBABLY TRUE TO SAY THAT IN BOTH BRITAIN AND THE US CRIME IS AN INDUSTRY GROWING EVEN FASTER THAN PRIVATE SECURITY RECENTLY I HAVE BEEN REREADING THE REMARKABLE STUDIES THAT HENRY MAYHEW CARRIED OUT IN LONDON IN THE 1840S AND PUBLISHED AS LONDON LABOUR AND THE LONDON POOR 1851 HIS FOURTH VOLUME DEALS COMPREHENSIVELY WITH THE CRIMINALS OF LONDON THEN A CITY OF ABOUT 3 MILLION PEOPLE HE WAS ABLE NOT ONLY TO IDENTIFY EVERY CATEGORY AND SUBTYPE OF CRIMINAL ACTIVITY IN THE CITY BUT IN ALMOST EVERY CASE TO PINPOINT THEIR GEOGRAPHICAL LOCATION WHAT HE WAS DESCRIBING IN FACT WAS A SPECIFIC CRIMINAL CLASS DISTINCT FROM SOCIETY AS A WHOLE AND ALMOST BY DEFINITION FIRMLY UNDER ITS CONTROL CRIME COULD NOT FINALLY BE ENDED BUT IT COULD BE CONTAINED AND ERODED TODAY IT WOULD BE IMPOSSIBLE FOR A MODERN MAYHEW TO PUBLISH SUCH A SURVEY OF NEW YORK OR LONDON OR LOS ANGELES IT IS NOT JUST THAT THESE CITIES ARE BIGGER 146 MILLION 91 MILLION AND 101 MILLION PEOPLE RESPECTIVELY BUT THAT CRIME IS NO LONGER LOCALIZED IT IS EVERYWHERE AND PERMEATES SOCIETY IT STARTS EARLIER LAST FEBRUARY IN LIVERPOOL TWO 10YEAROLDS ABDUCTED AND CRUELLY MURDERED A TWOYEAROLD IN LOS ANGELES 100000 CHILDREN UNDER THE AGE OF 14 BELONG TO GANGS ARMED WITH LETHAL WEAPONS CRIME ALSO NOW AFFECTS THE LIVES OF THE AGED TO A DEGREE HITHERTO UNKNOWN IT IS NOT UNCOMMON IN LONDON FOR WOMEN OVER 80 TO BE RAPED AND MURDERED BY YOUNG THIEVES WHO BREAK INTO THEIR APARTMENTS TO STEAL INDEED IN CITIES ON BOTH SIDES OF THE ATLANTIC THE AGED AND DEFENSELESS IN THE INNER CITIES HAVE NOW LOST THEIR FREEDOM OF MOVEMENT JUST AS YOUNG CHILDREN CAN NO LONGER BE ALLOWED TO PLAY IN THE STREETS CRIME NOW TRANSCENDS SEX AS MORE AND MORE WOMEN BECOME BOTH VICTIMS AND PERPETRATORS OF IT THANKS PRINCIPALLY TO DRUG ABUSE IT TRANSCENDS CLASS AND OCCUPATION AND EDUCATIONAL BARRIERS EVERYDAY CRIME IS NO LONGER CONFINED TO INNERCITY GHETTOS FIGURES RELEASED LAST WEEK SHOW THAT IN BRITAIN IT IS RISING FASTEST IN RURAL AREAS OLDFASHIONED CONSERVATIVE SHIRES LIKE WILTSHIRE AND HAMPSHIRE NOW PRODUCE DEVASTATING STATISTICS OF ROBBERY WITH VIOLENCE RAPE AND MALICIOUS WOUNDING IN THE US CRIME HAS BECOME ROUTINE IN SMALLER CITIES AND TOWNSHIPS EVERYONE RICH AND POOR OLD AND YOUNG BLACK AND WHITE EDUCATED AND ILLITERATE IS NOW AT THE RECEIVING END OF CRIME OR PERPETRATING IT YET AT A TIME WHEN CRIME IS HAVING A MORE DIRECT IMPACT ON THE LIVES OF US ALL THAN EVER BEFORE THE TREATMENT OF IT BY AUTHORITY IS BECOMING LESS AND LESS DEMOCRATIC IN BOTH BRITAIN AND THE US OPINION POLLS CONDUCTED OVER MANY YEARS SHOW THAT PUBLIC OPINION IN ITS ATTITUDE TOWARD CRIME IS OVERWHELMINGLY REPRESSIVE AS CRIME INCREASES ORDINARY PEOPLE NOT SURPRISINGLY BECOME MORE AND MORE HOSTILE TOWARD CRIMINALS THEY DO NOT WANT TO UNDERSTAND CRIMINALS THEY ARE NOT EVEN MUCH INTERESTED IN REFORMING THEM THEY WANT THEM PUNISHED AS SEVERELY AND AS CHEAPLY AS POSSIBLE HABITUAL AND VIOLENT CRIMINALS THEY WANT TAKEN OUT OF SOCIETY ALTOGETHER PREFERABLY FOR GOOD THEY FAVOR PUNISHMENT THAT IS DETERRENT AND RETRIBUTIVE BUT WHAT AUTHORITY ACTUALLY DOES ABOUT DEALING WITH CRIME BEARS NO RELATION AT ALL TO POPULAR WISHES IN BOTH COUNTRIES THE LIBERALS CAPTURED POWER OVER THE ADMINISTRATION OF CRIME AND PUNISHMENT IN THE 1950S AND HAVE NEVER RELINQUISHED IT ON THE CONTRARY THEIR GRIP HAS TIGHTENED AS CRIME RISES AND AFFECTS THE LIVES OF MORE AND MORE PEOPLE SO LIBERAL REMEDIES ARE APPLIED WITH EVERINCREASING OBSTINACY AND AT MOUNTING EXPENSE THE REASONS LIE IN THE NATURE OF MODERN GOVERNMENT WHERE LOBBIES PRESSURE GROUPS AND ORGANIZED MINORITIES EXERT MORE INFLUENCE OVER SPECIFIC AREAS OF POLICY THAN THE MASS OF THE PEOPLE THIS PRINCIPLE APPLIES PARTICULARLY IN THE FIELD OF CRIME IN BOTH BRITAIN AND THE US A PERMANENT WORKING ALLIANCE EXISTS BETWEEN ON THE ONE HAND LIBERALS IN ACADEMIA AND THE MEDIA AND ON THE OTHER THEIR COUNTERPARTS IN GOVERNMENT AND ITS AGENCIES IN PRIVATE AND TRADE UNION LOBBIES IN THE COURTS AND IN LAW FIRMS IN PRACTICE THESE PEOPLE DRAFT THE LEGISLATION THAT GOVERNMENTS THEN SPONSOR AND CONGRESS AND PARLIAMENT ENACT THIS LEGISLATION IS OVERWHELMINGLY LIBERAL IN CHARACTER AND IS DESIGNED ESSENTIALLY TO PROTECT THE RIGHTS AND INTERESTS OF THE WRONGDOER RATHER THAN THOSE OF THE VICTIM WHO HAS NO LOBBY THIS EXPLAINS FOR INSTANCE WHY THE BRITISH CONSERVATIVE GOVERNMENT THEORETICALLY COMMITTED TO A REPRESSIVE LINE ON CRIME HAS IN FACT PUT THROUGH SUCH ULTRALIBERAL MEASURES AS THE CHILDREN'S ACT OF 1989 AND THE CRIMINAL JUSTICE ACT OF 1991 LIBERALISM AS THE ANSWER TO RISING CRIME HAS BEEN APPLIED IN BOTH THE GREAT DEMOCRACIES NOW FOR THE BEST PART OF HALF A CENTURY IT HAS BEEN TESTED TO DESTRUCTION IT HAS FAILED EVERYWHERE OVERWHELMINGLY AND MANIFESTLY EXCEPT IN ONE REGION THE MINDS OF ITS ADVOCATES FOR THEM LIBERALISM IS A RELIGION AN ARTICLE OF FAITH BORN OF CONVICTION AND NOT SUSCEPTIBLE TO PROOF OR DISPROOF AND AS THEY CONTINUE TO CONTROL IN PRACTICE THE WAY IN WHICH SOCIETY OFFICIALLY RESPONDS TO CRIME IN BOTH COUNTRIES SO THEY NOURISH THE MONSTER STROLLING IN OUR MIDST BY INCREASING ITS LIBERAL DIET ORDINARY PEOPLE IN THE MEANTIME PERCEIVE THAT IN THIS CENTRAL FIELD DEMOCRACY DOES NOT WORK AT ALL THEY SHRUG THEIR SHOULDERS AND SET ABOUT PROTECTING THEMSELVES AS THEIR PRIMITIVE ANCESTORS DID BEFORE THE STATE HAD BEEN INVENTED IT IS NOT A HEALTHY STATE OF AFFAIRS IN FACT THE FAILURE OF AUTHORITY TO CARRY OUT THE PUBLIC'S WISHES ON CRIME IS EVEN MORE CORROSIVE OF SOCIETY THAN RISING CRIME ITSELF MR JOHNSON'S MOST RECENT BOOK IS THE BIRTH OF THE MODERN HARPERCOLLINS 1991 SEE RELATED LETTERS LETTERS TO THE EDITOR DOES ANYONE KNOW HOW TO STOP CRIME JAN 11 1994 9401040143 YY94 MM01 9401110134 940111 STEEL PRODUCTION ROSE BY 16 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 16 LAST WEEK TO 1894000 TONS FROM 1864000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 75 FROM THE 1762000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 92 OF ITS CAPABILITY LAST WEEK COMPARED WITH 886 THE PREVIOUS WEEK AND 833 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9401110133 940111 ANDERSEN DELOITTE ARE NAMED IN SUIT CONCERNING PRUDENTIAL PARTNERSHIPS BY MICHAEL SICONOLFI AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC WITH THE HELP OF TWO MAJOR ACCOUNTING FIRMS INFLATED THE PURCHASE PRICE OF SOME ENERGY LIMITEDPARTNERSHIPS BY BACKDATING THE EFFECTIVE DATES OF OIL PROPERTY PURCHASES A LAWSUIT CONTENDS THE LAWSUIT FILED IN ORANGE COUNTY SUPERIOR COURT IN CALIFORNIA LATE FRIDAY AND SEEKING CLASS ACTION ON BEHALF OF 118500 INVESTORS IS THE FIRST ATTEMPT TO HAUL ARTHUR ANDERSEN & CO AND DELOITTE & TOUCHE THE TWO PRUDENTIAL ACCOUNTING FIRMS INTO THE BROKERAGE FIRM'S PARTNERSHIP MESS THE SUIT ALLEGES THAT PRUDENTIAL ALONG WITH ANDERSEN AND DELOITTE WHICH REVIEWED THE PARTNERSHIPS' FINANCIAL RECORDS HARMED INVESTORS THROUGH THE ACCOUNTING GAMBIT WHICH EFFECTIVELY RETURNED SOME OF THE INVESTORS' MONEY TO THEM AS PARTNERSHIP DISTRIBUTIONS THE SUIT SEEKS 11 BILLION IN DAMAGES AS PREVIOUSLY REPORTED PRUDENTIAL INFLATED PAYOUTS ON SOME OF ITS MONEYLOSING PARTNERSHIPS BY DISTRIBUTING BORROWED FUNDS TO INVESTORS BUT THE SUIT'S ALLEGATIONS SUGGEST THAT THERE WAS A CALCULATED ATTEMPT BY PRUDENTIAL TO DEFRAUD INVESTORS FROM THE PARTNERSHIPS' LAUNCH AND THAT ANDERSEN AND TOUCHE WERE PART OF IT THE SUIT TYPIFIES MANY ACTIONS AGAINST BIG ACCOUNTING FIRMS IN RECENT YEARS THE BIG SIX SAY SUCH CLAIMS AIMED AT THEIR DEEP POCKETS TOTAL 30 BILLION OR FAR MORE THAN THE ACCOUNTING PARTNERS' CAPITAL PLAINTIFFS' ATTORNEYS SAY OUTSIDE AUDITORS SHOULD ALERT INVESTORS TO MANAGEMENT FRAUD BUT AUDITORS COUNTER THEY ALSO WERE FOOLED BY FRAUDULENT MANAGEMENT A SPOKESMAN FOR ARTHUR ANDERSEN THE NATION'S BIGGEST ACCOUNTING FIRM SAID OF THE PRUDENTIAL CASE WE ARE CONFIDENT WE CONDUCTED OUR AUDITS IN COMPLIANCE WITH GENERALLY ACCEPTED AUDITING PRINCIPLES AND ARE UNAWARE OF ANY FACTUAL BASIS FOR THE LAWSUIT A SPOKESMAN FOR DELOITTE SAID THE THIRDLARGEST US ACCOUNTING FIRM HASN'T YET SEEN THE SUIT AND THUS CAN'T COMMENT PRUDENTIAL SECURITIES THE FOURTHLARGEST BROKERAGE FIRM AND A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA ISN'T A NAMED DEFENDANT IN THE SUIT BECAUSE IT ALREADY FACES A MAJOR CLASSACTION LAWSUIT INVOLVING THE ENERGY PARTNERSHIPS THIS IS NOT NEW JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT SAID OF THE SUIT'S ALLEGATIONS THERE WAS NO BACKDATING OF DOCUMENTS AT ALL AT ALL AT ALL ANYWHERE HE SAID ADDING THAT STANDARD PRACTICE IN THE OIL AND GAS INDUSTRY IS TO HAVE THE EFFECTIVE DATE PRIOR TO THE SIGNING OF THE PURCHASE CONTRACT OR CLOSING OF THE SALE PRUDENTIAL AND ITS ACCOUNTANTS OVERSTATED INVESTOR DISTRIBUTIONS BY THE AMOUNT OF PRECLOSING REVENUES THE SUIT SAYS MOREOVER THE DISCLOSURE CONCERNING THE PRECLOSING REVENUE WAS TOTALLY MISLEADING IN THAT IT CARRIED WITH IT THE CONNOTATION OF A POSTCONTRACTUAL EFFECTIVE DATE THE SUIT SAYS IN SOME INSTANCES THE EFFECTIVE DATE EVEN PRECEDED THE DATE ON WHICH THE PARTICULAR LIMITED PARTNERSHIP WAS FORMED ACCORDING TO THE SUIT IN OCTOBER PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION IN A RESTITUTION FUND FOR INVESTORS TO SETTLE ALLEGATIONS BY FEDERAL AND STATE REGULATORS THAT THE FIRM MISSTATED THE RISKS AND RETURNS IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS IN THE 1980S 9401110132 940111 WHO'S NEWS MELLON BANK CORP MELLON BANK CORP PITTSBURGH ROBERT MEHRABIAN 52 YEARS OLD PRESIDENT OF CARNEGIE MELLON UNIVERSITY PITTSBURGH WAS NAMED A NEW DIRECTOR OF THIS BANK HOLDING COMPANY AND OF ITS MELLON BANK UNIT HIS APPOINTMENT WHICH WAS EFFECTIVE JAN 1 INCREASES THE SIZE OF BOTH THE COMPANY'S AND THE UNIT'S BOARD TO 20 MEMBERS 9401110131 940111 WHO'S NEWS DIAGNOSTEK INC DIAGNOSTEK INC ALBUQUERQUE NM DUKE RODRIGUEZ 36 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT OF THIS MAILORDER PHARMACEUTICAL COMPANY HE WILL REMAIN CHIEF OPERATING OFFICER THE COMPANY ALSO SAID IT IS REORGANIZING MANAGEMENT TO ELIMINATE DUPLICATE MANAGEMENT FUNCTIONS WITHIN THE THREE PRINCIPAL OPERATING UNITS AS A RESULT WARREN SCHELLING 40 PRESIDENT OF THE COMPANY'S HPI HEALTH CARE SERVICES UNIT WAS NAMED EXECUTIVE VICE PRESIDENT AND PHARMACY SERVICES OFFICER ARTHUR SOLOMON 45 PRESIDENT OF HEALTH CARE SERVICES WAS NAMED EXECUTIVE VICE PRESIDENT AND MANAGED CARE OFFICER AND ROBERT FIELD 46 PRESIDENT OF PERFORM COST MANAGEMENT SERVICES WAS NAMED EXECUTIVE VICE PRESIDENT AND SALES OFFICER 9401110130 940111 INTERNATIONAL BCCI ACCORD MAY SPUR MORE LEGAL ACTIONS BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW AGREEMENT PROVIDES US PROSECUTORS WITH MORE INFORMATION AND ACCESS TO KEY WITNESSES THE SETTLEMENT WAS STRUCK SATURDAY BY THE US JUSTICE DEPARTMENT THE NEW YORK COUNTY DISTRICT ATTORNEY'S OFFICE AND THE FEDERAL RESERVE BOARD AND ABU DHABI THE ACCORD ALSO COULD LEAD TO A SETTLEMENT OF DEPOSITORS' CLAIMS WHICH ARE ESTIMATED TO TOTAL AS MUCH AS 12 BILLION A KEY CLAUSE REQUIRES THE PERSIAN GULF SHEIKDOM WHICH OWNED 77 OF BCCI TO SETTLE WITH BCCI'S LIQUIDATORS ON DEPOSITORS' CLAIMS BY APRIL 1 OR HAND OVER ALL OF THE ORIGINAL BOOKS AND RECORDS OF BCCI HANDING OVER ALL RECORDS MIGHT WELL OPEN THE DOORS TO YEARS OF LAWSUITS THE LIQUIDATORS OF BCCI HOLDINGS LUXEMBOURG SA THE BANK'S HOLDING COMPANY WERE APPOINTED BY A LUXEMBOURG COURT AFTER THE BANK WAS CLOSED BY REGULATORS IN THE US AND EUROPE ON JULY 5 1991 CITING A HISTORY OF FRAUD GOING BACK MANY YEARS WITH THE SETTLEMENT CIVIL RACKETEERING CHARGES AGAINST ABU DHABI LEADER SHEIK ZAYED ALNAHYAN AND OTHER ABU DHABI OFFICIALS WERE DROPPED THOSE CHARGES ALLEGED THAT THE OFFICIALS HARMED FIRST AMERICAN BY BENEFITING FROM BCCI'S COVERT AND THUS ILLEGAL OWNERSHIP OF THE US BANK OTHER PARTS OF THAT SUIT FILED LAST YEAR IN FEDERAL COURT IN WASHINGTON DC WILL CONTINUE HOWEVER AND FIRST AMERICAN'S COURT APPOINTED TRUSTEE HARRY ALBRIGHT WILL RECEIVE 50 MILLION TO PURSUE THAT LEGAL ACTION THE BIGGEST PLUM FROM THE AGREEMENT IS THAT ABU DHABI NOW MUST HAND OVER SWALEH NAQVI A FORMER BCCI CHIEF EXECUTIVE OFFICER TO THE US AUTHORITIES WITHIN THE NEXT SEVERAL WEEKS AND TO PROVIDE ACCESS TO SEVERAL OTHER SENIOR BCCI OFFICERS NOW IN CUSTODY IN THE EMIRATE US INVESTIGATORS MAINTAIN THAT MR NAQVI HOLDS THE KEY TO UNDERSTANDING MANY OF BCCI'S COMPLEX AND ILLEGAL DEALINGS MR NAQVI'S TESTIMONY AND DOCUMENTS ALSO ARE LIKELY TO BE RELEVANT TO SEVERAL OTHER OUTSTANDING BCCIRELATED ISSUES AND PARTICULARLY ANY FURTHER ACTION AGAINST CLARK CLIFFORD AND ROBERT ALTMAN THE FORMER TOP OFFICERS OF FIRST AMERICAN WHO ALSO SERVED AS US LAWYERS FOR BCCI AS WELL AS COUNSEL TO FIRST AMERICAN THE JUSTICE DEPARTMENT PROBABLY WILL FIRST MAKE A DECISION WHETHER THIS NEW EVIDENCE PROVIDES GROUNDS FOR A FEDERAL CASE AGAINST MESSRS CLIFFORD AND ALTMAN ACCORDING TO A PERSON CLOSE TO THE MATTER IF NOT THAT EVIDENCE WILL PROBABLY BE PASSED ON TO THE FEDERAL RESERVE BOARD WHICH HAS A PENDING ACTION AGAINST THE TWO MEN BEFORE AN ADMINISTRATIVE LAW JUDGE IN WASHINGTON DC IN AUGUST MR ALTMAN WAS ACQUITTED OF CHARGES RELATED TO BCCI'S TAKEOVER OF FIRST AMERICAN THE MANHATTAN DISTRICT ATTORNEY'S OFFICE LATER DROPPED SIMILAR CHARGES AGAINST MR CLIFFORD CITING HIS POOR HEALTH MESSRS CLIFFORD AND ALTMAN WHO HAVE CONSISTENTLY MAINTAINED THEIR INNOCENCE ALSO REMAIN DEFENDANTS IN THE FIRST AMERICAN TRUSTEE'S CIVIL RACKETEERING SUIT THE TRUSTEE LAST YEAR OVERSAW THE SALE OF MOST OF FIRST AMERICAN'S ASSETS TO FIRST UNION CORP OF CHARLOTTE NC MR NAQVI'S TESTIMONY AND DOCUMENTS ALSO ARE LIKELY TO SHED SOME LIGHT ON OTHERS INVOLVED IN THE BCCI SCANDAL WHO REMAIN A TARGET FOR US AUTHORITIES THESE INCLUDE AGHA HASAN ABEDI BCCI'S AILING FOUNDER WHO WAS THE SUBJECT OF A WRIT ISSUED IN ABU DHABI IN RECENT DAYS HE STILL IS WANTED BY THE US AUTHORITIES AS IS GHAITH PHARAON A ONETIME INVESTOR IN AND FRONT MAN FOR THE ROGUE BANK IN RETURN FOR A PROMISE THAT US PROSECUTORS WOULDN'T INITIATE LEGAL PROCEEDINGS AGAINST ABU DHABI OFFICIALS THE EMIRATE WAIVED ITS RIGHT TO 400 MILLION OF US CLAIMS AND MUCH OF THIS MONEY WILL BE USED TO HELP TO COMPENSATE DEPOSITORS 9401110129 940111 WHO'S NEWS BODY DRAMA INC BODY DRAMA INC LOS ANGELES CHRISTOPHER A CRANE STEPHEN DAVIS AND PAMELA J GRUNDER WERE ELECTED DIRECTORS OF THIS INTIMATEAPPAREL MAKER MR CRANE 42 YEARS OLD IS PRESIDENT AND OWNER OF BUSINESS REAL ESTATE INFORMATION CORP AND A DIRECTOR OF BEEBA'S CREATIONS INC HE SUCCEEDS ARJUN C WANEY FOUNDER AND CHAIRMAN OF BEEBA'S WHICH OWNS 508 OF BODY DRAMA'S STOCK OUTSTANDING MR DAVIS 54 IS SENIOR VICE PRESIDENT OF BODY DRAMA MS GRUNDER 47 IS VICE PRESIDENT OF MERCHANDISING AND MARKETING FOR RETAIL APPAREL GROUP THEIR ADDITION INCREASES THE BOARD TO SEVEN 9401110128 940111 CANADA INVITES FIRMS TO NAME ARCTIC AREAS TO EXPLORE FOR ENERGY OTTAWA THE CANADIAN GOVERNMENT INVITED OIL AND GAS COMPANIES TO IDENTIFY AREAS OF EXPLORATION INTEREST IN CANADA'S WESTERN ARCTIC REGION A CALL FOR SUCH NOMINATIONS IS USUALLY FOLLOWED BY AN OFFERING OF CONCESSIONS TO POTENTIAL BIDDERS THE AREA INVOLVED INCLUDES THE BEAUFORT SEA AND MACKENZIE DELTA AND PORTIONS OF THE NORTHWEST AND YUKON TERRITORIES IT ALSO INCLUDES SEVERAL WESTERN ARCTIC ISLANDS INCLUDING BANKS ISLAND AND VICTORIA ISLAND LARGE OIL AND GAS DISCOVERIES HAVE BEEN MADE IN THE MACKENZIE DELTA AND BEAUFORT SEA REGION SINCE EXPLORATION STARTED IN THE EARLY 1970S BUT NONE OF THE FINDS HAS BEEN BROUGHT INTO PRODUCTION BECAUSE OF HIGH PRODUCTION AND TRANSPORTATION COSTS 9401110127 940111 PEPPERAND SALT AND AN ELVER IS A YOUNG SEAL LOTS OF PR TYPES TO DO IT AND THE TRUTH I SHALL BLURT WHAT HURTS IS THE LANDING 9401110126 940111 WHO'S NEWS PANAMERICAN BEVERAGES INC PANAMERICAN BEVERAGES INC MEXICO CITY WILLIAM G COOLING 49 YEARS OLD WAS ELECTED TO THE BOARD OF THIS BOTTLING COMPANY INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR COOLING IS EXECUTIVE VICE PRESIDENT OF COLGATEPALMOLIVE CO PANAMERICAN BEVERAGES IS A BOTTLER OF COCACOLA CO SOFTDRINK PRODUCTS 9401110125 940111 WHO'S NEWS MEDTRONIC TAPS COLLINS FOR OPERATING CHIEF MINNEAPOLIS MEDTRONIC INC NAMED ARTHUR D COLLINS JR 46 YEARS OLD TO BE CHIEF OPERATING OFFICER OF THIS MANUFACTURER OF CARDIAC AND OTHER MEDICAL DEVICES MR COLLINS HAD BEEN EXECUTIVE VICE PRESIDENT AND PRESIDENT OF MEDTRONIC'S INTERNATIONAL OPERATIONS HE STILL WILL HAVE EXTENSIVE INVOLVEMENT WITH THE INTERNATIONAL DIVISION COMPANY OFFICIALS SAID THE POST HAS BEEN OPEN SINCE MAY 1991 WHEN WILLIAM W GEORGE GAVE IT UP TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER MR COLLINS JOINED MEDTRONIC IN MAY 1992 FROM ABBOTT LABORATORIES WHERE HE HAD BEEN HEAD OF ABBOTT'S DIAGNOSTIC BUSINESS SINCE 1986 HE WAS GIVEN CONSIDERABLE CREDIT AT ABBOTT FOR THE DEVELOPMENT OF THE IMX DIAGNOSTIC MACHINE A HIGHLY SUCCESSFUL PRODUCT THAT HOSPITAL LABORATORIES USE TO TEST FOR VARIOUS ILLNESSES THE DEVICE AND THE LABORATORY TESTS USED WITH IT HELPED MAKE ABBOTT A LEADING PLAYER IN THE MEDICAL DIAGNOSTICS FIELD 9401110124 940111 UNIONDUES PROPOSAL FOR FEDERAL WORKERS IS UNDER CONSIDERATION WASHINGTON A CLINTON ADMINISTRATION PANEL IS CONSIDERING A PROPOSAL TO FORCE FEDERAL WORKERS TO PAY UNION DUES IF THEY ARE REPRESENTED BY A UNION THE PLAN IS SEVERAL MAJOR STEPS AWAY FROM BECOMING LAW SINCE IT HASN'T YET BEEN BACKED BY THE WHITE HOUSE OR PROPOSED TO CONGRESS WHICH WOULD NEED TO VOTE IT INTO LAW LATER THIS WEEK THE NATIONAL PARTNERSHIP COUNCIL A PANEL OF GOVERNMENT OFFICIALS AND UNION LEADERS IS EXPECTED TO DECIDE WHETHER THE PLAN SHOULD BE PART OF THE COUNCIL'S PROPOSAL TO THE PRESIDENT NEXT MONTH FEDERALEMPLOYEE UNIONS HAVE BEEN SEEKING A DUES PLAN FOR YEARS CURRENTLY ONLY ABOUT 20 OF FEDERAL WORKERS PAY UNION DUES BUT ABOUT THREE TIMES THAT MANY ARE REPRESENTED UNDER COLLECTIVE BARGAINING AGREEMENTS THE MONEY GAP CAUSED BY THAT DIFFERENCE IS A CONTINUAL SOURCE OF IRRITATION FOR THE UNIONS THE PARTNERSHIP COUNCIL CREATED AFTER THE ADMINISTRATION ISSUED ITS PROPOSAL ON REINVENTING GOVERNMENT LAST YEAR ALSO IS WEIGHING A PLAN THAT WOULD GIVE WORKERS AND THE UNIONS MORE SAY OVER MATTERS THAT TYPICALLY HAVE BEEN MANAGEMENT'S DOMAIN INCLUDING WHICH EMPLOYEES TO CUT DURING DOWNSIZING AND OTHER WORKRULE DECISIONS PEOPLE FAMILIAR WITH THE DELIBERATIONS SAY THE COUNCIL HASN'T REACHED ANY CONSENSUS ON THE MATTER UNDER THE DUES PLAN IF 60 OF ALL EMPLOYEES ELECT TO BE IN A BARGAINING UNIT THE ENTIRE UNIT WOULD BE SUBJECT TO EITHER PAYING UNION DUES OR AN ALTERNATIVE SERVICE FEE THE PLAN WAS DESCRIBED IN YESTERDAY'S EDITIONS OF THE WASHINGTON POST 9401110123 940111 INTERNATIONAL PRICE WATERHOUSE IS SUED BY BANESTO SHAREHOLDERS LONDON A SPANISH SHAREHOLDERS' ASSOCIATION FILED SUIT AGAINST PRICE WATERHOUSE AS AUDITORS OF BANCO ESPANOL DE CREDITO FOR FAILING TO DRAW ATTENTION TO THE FINANCIAL PROBLEMS OF THE TROUBLED SPANISH BANK PRICE WATERHOUSE SAID IT IS CONFIDENT BANESTO SHAREHOLDERS HADN'T BEEN MISLED BY ITS REPORTS ACCORDING TO THE ASSOCIATION FOR THE DEFENSE OF SHAREHOLDERS WHICH BROUGHT THE SUIT AGAINST PRICE WATERHOUSE THE CENTRAL BANK'S DE FACTO TAKEOVER OF BANESTO LAST MONTH WAS LONG OVERDUE AND SHOULD HAVE BEEN ACCELERATED BY BANESTO'S AUDITORS IN DECEMBER THE BANK OF SPAIN FIRED BANESTO'S CHAIRMAN MARIO CONDE AND HIS ENTIRE BOARD ASSERTING THAT THE BANK'S PRECARIOUS FINANCIAL SITUATION THREATENED THE STABILITY OF THE ENTIRE SPANISH BANKING SYSTEM ENRICO CASSANY THE CHAIRMAN OF THE BARCELONABASED INVESTORS GROUP SAID IN A TELEPHONE INTERVIEW THE BANK WAS ALREADY IN A STATE OF TECHNICAL BANKRUPTCY WHEN ITS ANNUAL REPORT WAS PUBLISHED LAST SPRING THE AUDITORS SHOULD HAVE GIVEN MORE EXPLICIT WARNINGS 9401110122 940111 GILLETTE TO REALIGN GLOBAL FACILITIES CHARGE IS SLATED BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON GILLETTE CO SEEKING TO CUT COSTS IN A COMPETITIVE PERSONALCARE INDUSTRY SAID IT WILL REORGANIZE FACILITIES WORLDWIDE SHEDDING 2000 EMPLOYEES AS IT ADDS ABOUT THAT MANY POSITIONS ELSEWHERE THE JOB CUTS MOST OF WHICH WILL OCCUR OVERSEAS REPRESENT ABOUT 6 OF GILLETTE'S 34000 EMPLOYEES AND WILL PRODUCE A FOURTHQUARTER CHARGE OF 164 MILLION OR 74 CENTS A SHARE ALL BUT WIPING OUT THE 75 CENTS A SHARE PROFIT ANALYSTS HAD EXPECTED IN THE YEAREARLIER PERIOD GILLETTE HAD NET INCOME OF 1353 MILLION OR 61 CENTS A SHARE GILLETTE SAID THE REALIGNMENT WOULD GENERATE COST SAVINGS BEGINNING IN 1995 BUT IT WASN'T SPECIFIC UNDER THE PLAN GILLETTE WILL CLOSE SOME OF ITS 60 WORLDWIDE FACILITIES AND CONVERT MULTIPLEPRODUCT MANUFACTURING SITES INTO MOREEFFICIENT SINGLEPRODUCT PLANTS THE CONVERSIONS ARE EXPECTED TO LOWER INVENTORY EXPENSES AND INCREASE PRODUCTION THIS ISN'T A RESTRUCTURING IN THE TRADITIONAL SENSE SAID ALFRED ZEIEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE AREN'T DOWNSIZING ANALYSTS SAID THE MOVES DOVETAILED WITH GILLETTE'S PLANS TO COMPETE MORE AGGRESSIVELY WITH INDUSTRY GIANTS INCLUDING PROCTER & GAMBLE CO AND COLGATEPALMOLIVE CO IN SUCH PRODUCTS AS TOOTHBRUSHES AND MOUTHWASH GILLETTE'S PRESENCE IN SOME OF THESE MARKETS IS IN ITS INFANCY BY CUTTING COSTS AT PLANTS OVERSEAS GILLETTE MAY BE ABLE TO OFFSET THE ADDED EXPENSES OF MARKETING NEWER PRODUCTS ALTHOUGH GILLETTE HAS 40 OF THE GLOBAL SHAVING MARKET ITS ORALB LABORATORIES UNIT HAS A GOAL OF 15 TO 3 MARKET SHARE IN THE TOOTPASTE AND MOUTHRINSE BUSINESSES THIS YEAR MR ZEIEN IN A TELEPHONE INTERVIEW WITH ANALYSTS AND REPORTERS SAID THE COMPANY PLANS TO SPEND AN ADDITIONAL 100 MILLION DESIGNING AND ROLLING OUT PRODUCTS IN 1994 GILLETTE ADDED THAT IT WILL REPORT RECORD QUARTERLY SALES FOR THE FOURTH QUARTER TOPPING THE 15 BILLION IT POSTED IN 1992'S FOURTH QUARTER IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GILLETTE SHARES CLOSED AT 59625 UP 1125 ON VOLUME OF 737000 SHARES GILLETTE WHICH LIKES TO CHARGE PREMIUM PRICES DOESN'T WANT TO DISCOUNT ITS ALTERNATIVE IS AGGRESSIVE ADVERTISING AS A RESULT PREDICTS ANDREW SHORE AN ANALYST FOR PAINEWEBBER GILLETTE'S ADVERTISING BUDGET IS LIKELY TO INCREASE TO 89 OF SALES THIS YEAR FROM JUST ABOVE 8 IN 1993 MR SHORE SAID HE ISN'T REVISING HIS 1994 EARNINGS ESTIMATE OF 310 A SHARE 9401110121 940111 TRACKING TRAVEL BY MICHAEL J MCCARTHY WHEN TRAVELING MORE BUSINESS PEOPLE ARE LUGGING ALONG A NEWFANGLED TYPE OF LAPTOP COMPANION CHILDREN FUELING THE TREND ARE THE PREVALENCE OF TWOCAREER COUPLES THE POPULARITY OF COMBINING BUSINESS AND PLEASURE TRIPS AND THE SPREAD OF LOW AIR FARES REQUIRING WEEKEND STAYOVERS OF THE 278 MILLION BUSINESS TRIPS TAKEN IN 1992 16 INCLUDED CHILDREN UP FROM 13 IN 1991 REPORTS THE TRAVEL INDUSTRY ASSOCIATION OF AMERICA WITH THE PROLIFERATION OF FREQUENTFLIER MILES IT'S BECOME VERY EASY FOR MOM OR DAD TO TAKE FAMILY ALONG SAYS JANET TICE A FAMILYTRAVEL CONSULTANT AND PRESIDENT OF GREAT DESTINATIONS TRAVEL CO IN DURHAM NC SOME HOTELS AND AIRLINES ARE TAILORING SERVICES TO HELP HARRIED WORKING PARENTS IN ORLANDO FLA THE EMBASSY SUITES LAKE BUENA VISTA RESORT OPERATES SUPERVISED PLAY CENTERS FOR YOUNG GUESTS IT OFFERS CELLULAR PHONES TO PARENTS WHO MUST LEAVE OLDER CHILDREN AT THE HOTEL DURING MEETINGS AND CERTAIN ROOMS ARE BABYPROOFED WITH COVERED ELECTRICAL OUTLETS AND ROUNDED FURNITURE CORNERS THE EMBASSY SUITES CENTER CITY IN PHILADELPHIA KEEPS YOUNGSTERS OCCUPIED WITH ITS OWN PLEASE TOUCH KIDDIE MUSEUM IN NOVEMBER UNITED AIRLINES BEGAN DISTRIBUTING A CHILDREN'S MAGAZINE CALLED PLANE FUN WITH GAMES PUZZLES JOKES AND ARTICLES ON TOPICS LIKE HOW PLANES FLY AND EDIBLE INSECTS UNITED HOPES TO PREVENT BORED KIDS FROM BOTHERING OTHER PASSENGERS WE FELT THERE WAS A HOLE FOR CHILDREN'S SERVICE ON OUR AIRCRAFT A UNITED SPOKESMAN SAYS STILL THERE ARE SOME BUILTIN LIMITS TO THE TREND BUSINESS TRAVEL OFTEN INVOLVES THE UNPREDICTABLE POSTPONED MEETINGS MISSED FLIGHTS THAT CAN THROW A WRENCH IN CHILDCARE PLANS UNABLE TO FIND A BABY SITTER MS TICE REMEMBERS HAVING TO SEAT HER TODDLER ON HER BROCHURE TABLE AT A TRADE SHOW IN CHICAGO SHE RECOMMENDS BRINGING A RELATIVE OR NANNY ALONG ON BUSINESS TRIPS YOU ALMOST HAVE TO HAVE SOMEONE WHO CAN STAY AND BE RESPONSIBLE FOR THE CHILD ONEUPMANSHIP IN AIRLINE PROMOTIONALS IN 1994 IS EXPECTED TO MAKE IT EASIER TO GET FARE DISCOUNTS AND FREQUENTFLIER POINTS WITHOUT EVER SETTING FOOT NEAR AN AIRPLANE A NEW GENERATION OF AIRLINE PROMOTIONS GOES WAY BEYOND THE MARKETING TIEINS WITH BANK CREDIT CARDS HOTEL AND CARRENTAL COMPANIES AND LONGDISTANCE PHONE FIRMS MORE AND MORE TRAVELERS ARE SNAPPING UP FLIGHT DEALS THROUGH DECIDEDLY ROUTINE CHORES LIKE GROCERY SHOPPING EATING OUT OR VISITING THE EYE DOCTOR BUY A HOME ALONE II VIDEO INSIDE ARE COUPONS GOOD FOR UP TO 70 OFF DOMESTIC TICKETS ON AMERICAN AIRLINES WHILE FLYING ON NORTHWEST AIRLINES DONATE 50 TO CHARITIES LIKE THE BOYS AND GIRLS CLUBS AND GET 500 FREQUENTFLIER MILES BUY A PAIR OF SWAN OPTICAL GLASSES FROM THE OPTOMETRIST GET UP TO 50 OFF ROUNDTRIP FARES ON CONTINENTAL AIRLINES THERE WERE 250 SUCH PROMOTIONAL PROGRAMS IN 1993 COMPARED WITH 150 IN 1992 THAT'S BECAUSE AIRLINES BELIEVE THEY PROVIDE AN EDGE OVER RIVALS PARTICULARLY WHEN TARGETING REGIONS OR CITIES COUPONS ARE MORE DIFFICULT FOR AIRLINE COMPETITORS TO SPOT AND RESPOND TO SAYS TOM PARSONS PUBLISHER OF BEST FARES MAGAZINE IT'S A GRAY MARKET UNLIKE COMPUTERIZED FARE CUTS WHICH CAN BE MATCHED WITHIN HOURS BUT THAT DOESN'T KEEP THE AIRLINES FROM TRYING AFTER THE OLIVE GARDEN ITALIAN RESTAURANT CHAIN STARTED A SUMMER PROMOTION GIVING PATRONS COUPON BOOKLETS WITH DISCOUNTS ON CONTINENTAL FLIGHTS AMERICAN UNITED NORTHWEST AND USAIR GROUP INC ALL JUMPED IN HONORING THE CONTINENTAL COUPONS ON CERTAIN ROUTES A SIMILAR BATTLE ERUPTED WHEN THE STOP & SHOP SUPERMARKETS CHAIN BEGAN OFFERING SHOPPERS COLLECTING 100 IN GROCERY RECEIPTS UP TO 100 OFF DELTA AIR LINES TICKETS AT LEAST TWO OTHER AIRLINES JOINED IN TO HONOR THE DELTA COUPONS SALES OF RECREATIONAL VEHICLES LONG THE DOMAIN OF THE SENIOR SET ARE ON A ROLL FOR THEIR TRAVEL MONEY MORE YOUNG COUPLES ARE SAYING RVSRUS RIDING A SURGE IN DEMAND RETAIL SALES OF RVS TRAILERS MOTOR HOMES AND THE LIKE ARE EXPECTED TO APPROACH 96 BILLION IN 1993 THE INDUSTRY'S BIGGEST YEAR SINCE 1978 FROM JANUARY TO OCTOBER WHOLESALE SHIPMENTS JUMPED 14 FROM A YEAR EARLIER SAYS THE RECREATIONAL VEHICLE INDUSTRY ASSOCIATION A NATIONWIDE SURVEY BY THE UNIVERSITY OF MICHIGAN FINDS RV OWNERS FEEL THIS MODE OF TRAVEL IS COMFORTABLE CONVENIENT AND A GOOD VALUE PROPONENTS SAY RVS ELIMINATE TRADITIONAL TRAVEL HASSLES LIKE LOST LUGGAGE POOR SERVICE AND NONREFUNDABLE DEPOSITS DEALERS HAVE BEEN SURPRISED BY THE RECENT POPULARITY OF RVS AMONG YOUNG FAMILIES SHIPMENTS OF FOLDING CAMPING TRAILERS THE TYPICAL ENTRYLEVEL VEHICLE FOR YOUNG COUPLES INTO THE RV MARKET ROCKETED 46 THROUGH THE FIRST 10 MONTHS OF 1993 COMPARED WITH A YEAR EARLIER AND THE UNIVERSITY OF MICHIGAN FOUND THAT 36 OF 18 TO 34YEAROLDS PLANNED TO PURCHASE AN RV THE HIGHEST PROPORTION OF ANY AGE GROUP LEE FITZGERALD PRESIDENT OF VENTURE OUT A CAMPBELL CALIF DEALERSHIP WHOSE MOTOR HOMES ARE PRICED FROM 30000 TO 155000 HAS NOTICED THE CHANGE WE'VE BEEN SEEING MORE BABY STROLLERS IN HERE LATELY HE SAYS UNITED AIRLINES SAID IT WILL BEGIN TESTING A SMOKING BAN ON SOME INTERNATIONAL FLIGHTS STARTING IN MARCH THE MOVE FOLLOWS A SIMILAR PLAN BY NORTHWEST AIRLINES WHICH IS SET TO BEGIN BANNING SMOKING IN FIRSTCLASS CABINS ON OVERSEAS FLIGHTS ASKING CHICAGO CABBIES ABOUT THEIR MOSTUNUSUAL REQUESTS AN OMNI CHICAGO HOTEL SURVEY QUOTES DRIVER GARY SASSO A YOUNG MARRIED COUPLE WANTED TO MAKE LOVE IN THE BACK SEAT WHILE DRIVING DOWN LAKE SHORE DRIVE IN THE MOONLIGHT MOST TOURISTS THE SURVEY FOUND SIMPLY WANTED A RIDE TO THE SEARS TOWER 9401110120 940111 COMMODITIES CRUDE PRICES DROP ERASING MOST RECENT GAINS AS HOPE FADES FOR QUICK OPEC PRODUCTION CUTS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CRUDEOIL PRICES PLUNGED BELOW 15 A BARREL AMID THE GROWING BELIEF THAT OPEC MINISTERS WON'T MEET ANYTIME SOON TO HAMMER OUT PRODUCTION CUTS IN ADDITION SEVERAL ESTIMATES PUT CRUDEOIL PRODUCTION BY THE ORGANIZATION OF EXPORTING COUNTRIES ANYWHERE FROM 300000 TO 400000 BARRELS A DAY ABOVE THE CARTEL'S QUOTA OPEC'S OVERPRODUCTION ALONG WITH INCREASED OUTPUT FROM OTHER PARTS OF THE GLOBE NOTABLY THE NORTH SEA HAVE GLUTTED WORLD OIL MARKETS AND PUSHED PRICES TO FIVEYEAR LOWS THE ODDS ARE PRETTY LOW THAT OPEC WILL MOVE UP ITS MEETING SAID WILLIAM RANDOL AN OIL ANALYST AT SALOMON BROTHERS INC IN NEW YORK HE SAID THAT WITH CURRENT PRODUCTION AND WEAK DEMAND IN EUROPE AND JAPAN PRICES WILL CONTINUE TO BE WEAK FOR SOME TIME THE FAINT HOPE THAT OPEC MINISTERS WOULD ADVANCE THEIR MEETING SCHEDULED FOR MARCH 25 WAS ENOUGH TO SPARK A RALLY LAST WEEK BUT YESTERDAY'S DECLINE ATE AWAY ALMOST ALL OF THE GAINS LIGHT SWEET CRUDE FOR FEBRUARY DELIVERY FELL 65 CENTS A BARREL TO SETTLE AT 1467 ON THE NEW YORK MERCANTILE EXCHANGE IN ADDITION SEVERAL LARGE US REFINERS INCLUDING ATLANTIC RICHFIELD CO CUT THE PRICE THEY WILL PAY AT THE PLANT GATE FOR MANY TYPES OF CRUDE OIL BY AS MUCH AS 75 CENTS A BARREL MARKET PARTICIPANTS CITED A REPORT IN THE MIDDLE EAST ECONOMIC SURVEY AN OILINDUSTRY TRADE PUBLICATION THAT PROSPECTS FOR MOVING UP THE MEETING ARE LOOKING INCREASINGLY UNLIKELY THE PUBLICATION ALSO SAID OPEC OUTPUT IN DECEMBER AVERAGED 248 MILLION BARRELS A DAY COMPARED WITH A CEILING OF 2452 MILLION BARRELS OTHER ESTIMATES PUT OPEC PRODUCTION EVEN HIGHER MR RANDOL OF SALOMON BROTHERS SAID SEVERAL INFLUENTIAL OPEC MEMBERS HAVE CONDITIONED ANY PRODUCTION CUTS ON REDUCTIONS IN OUTPUT FROM NONOPEC COUNTRIES THE OIL MINISTER OF OMAN RECENTLY MADE A WIDELY PUBLICIZED PLEA TO NORTH SEA PRODUCERS BRITAIN AND NORWAY AND CAME AWAY EMPTYHANDED MR RANDOL THINKS THE OMANI MINISTER WILL TRY AGAIN AND GET THE SAME RESULT THE PROBABILITY OF SUCCESS IS VIRTUALLY NIL HE SAID THE FREEZING WEATHER IN MUCH OF THE NORTHERN HALF OF THE COUNTRY BOOSTED NATURALGAS PRICES BUT WASN'T ENOUGH TO KEEP HEATINGOIL PRICES FROM PLUNGING ALONG WITH CRUDE AFTER TRADING AS HIGH AS 220 PER MILLION BRITISH THERMAL UNITS NATURAL GAS FOR FEBRUARY DELIVERY SETTLED AT 2157 UP 01 CENT ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY HEATING OIL FELL 141 CENTS A GALLON TO 4676 CENTS AND FEBRUARY GASOLINE SANK 212 CENTS TO 417 CENTS A GALLON SOME TRADERS SAID THE STEEP DROP IN PETROLEUM PRODUCTS PRICES WAS CAUSED IN PART BY CONCERN THAT MG CORP THE US TRADING UNIT OF THE GERMAN ENGINEERING AND METALS CONGLOMERATE METALLGESELLSCHAFT AG MIGHT HAVE TO LIQUIDATE SUBSTANTIAL ENERGY HOLDINGS THE COMPANY LAST WEEK ANNOUNCED POTENTIAL LOSSES IN ENERGY DERIVATIVES OF NEARLY 1 BILLION DERIVATIVES ARE FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM THE PRICE OF AN UNDERLYING ASSET SUCH AS CRUDE OIL AND OTHER ENERGY PRODUCTS IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES SLIPPED AFTER OVERNIGHT LIQUIDATION OF PRECIOUS METALS BY MIDDLE EASTERN INVESTOR SYNDICATES AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 150 TO 38570 AN OUNCE GOLD HAD DECLINED SHARPLY IN A MORNING SELLOFF AFTER OVERNIGHT SELLING BY THE INVESTOR SYNDICATES BUT GOLD DEALERS RETURNED TO THE MARKET AS BUYERS IN THE AFTERNOON HELPING THE MARKET REGAIN LOST GROUND WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID THE OUTLOOK FOR GOLD IN THE SHORT TERM DOESN'T LOOK GOOD BECAUSE OF THE STRENGTH OF THE US BOND AND STOCK MARKETS GRAINS AND SOYBEANS CORN AND SOYBEAN FUTURES PRICES SLUMPED AFTER A GOVERNMENT REPORT SHOWED EXCESSIVE LONG POSITIONS OR WAGERS THAT FUTURES PRICES WOULD INCREASE IN THE MARKET ANALYSTS SAID AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY WAS DOWN 525 CENTS TO 30375 A BUSHEL WHILE MARCH SOYBEANS FELL 1325 CENTS TO 6885 A BUSHEL THE COMMODITY FUTURES TRADING COMMISSION RELEASED A COMMITMENTOFTRADERS REPORT SHOWING A SHARP INCREASE IN LONG POSITIONS LAST WEEK AS A RESULT TRADERS BEGAN SELLING FUTURES CONTRACTS YESTERDAY SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO REPORTS THAT PARCHED SOYBEANGROWING REGIONS OF BRAZIL GOT RAIN ALSO EXERTED DOWNWARD PRESSURE ON THE MARKET 9401110119 940111 MARKETING & MEDIA SEGA ENTERPRISES RECALLING NIGHT TRAP' VIDEO GAME REDWOOD CITY CALIF SAY GOODNIGHT TO NIGHT TRAP THE CONTROVERSIAL VIOLENT CDROM VIDEO GAME PULLED FROM THE SHELVES OF TOY R US LAST MONTH HAS BEEN RECALLED BY ITS MANUFACTURER SEGA ENTERPRISES LTD WHICH IS BASED HERE NIGHT TRAP WAS SINGLED OUT IN CONGRESSIONAL DEBATE IN DECEMBER CONCERNING THE POSSIBLE CREATION OF A RATINGS AGENCY TO MONITOR SEX AND VIOLENCE IN VIDEO GAMES IN NIGHT TRAP PLAYERS TRY TO THWART BLACKHOODED ZOMBIES INTENT ON CAPTURING AND KILLING SCANTILYCLAD SORORITY WOMEN SEGA SAID IT IS URGING RETAILERS TO RETURN THE GAME WHICH SELLS FOR AROUND 50 THE COMPANY SAID IT PLANS TO REEDIT THE GAME AND RELEASE A NEW VERSION WHEN AN INDUSTRYWIDE RATINGS SYSTEM IS IN PLACE 9401110118 940111 KODAK'S STERLING UNIT WINS COURT DECISION OVER GERMANY'S BAYER NEW YORK STERLING WINTHROP INC SAID A US APPEALS COURT HAD UPHELD A RULING THAT BAYER AG OF GERMANY HAD INFRINGED STERLING WINTHROP'S BAYER TRADEMARK AND TRADE NAME THE COURT ENJOINED BAYER AG FROM USING THE WORD BAYER IN ANY ADVERTISEMENT OR MATERIALS IN THE US HOWEVER AT THE SAME TIME THE US COURT OF APPEALS FOR THE SECOND CIRCUIT IN NEW YORK STRUCK DOWN AN EARLIER INJUNCTION ISSUED BY THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK THAT SEVERELY RESTRICTED BAYER FROM USING ITS NAME IN THE US IT SAID THE PREVIOUS RULING WAS OVERLY BROAD AND MUST BE MODIFIED BY THE LOWER COURT MILES INC BAYER AG'S US UNIT SAID IT WAS PLEASED WITH THE DECISION STERLING A UNIT OF EASTMAN KODAK CO SELLS 125 MILLION OF ASPIRIN AND RELATED PRODUCTS UNDER THE BAYER TRADEMARK IN THE US AND SPENDS 50 MILLION A YEAR PROMOTING AND ADVERTISING IT ACCORDING TO THE RULING STERLING ACQUIRED THE EXCLUSIVE RIGHTS TO THE BAYER TRADEMARK IN THE US IN 1918 WHEN THE ALIEN PROPERTY CUSTODIAN SEIZED THE US ASSETS OF BAYER AG'S PREDECESSOR DURING WORLD WAR I AND SOLD THEM TO STERLING WINTHROP AT AUCTION OVER THE COURSE OF THE NEXT 40 YEARS THE GERMAN COMPANY MADE SEVERAL UNSUCCESSFUL ATTEMPTS TO REGAIN THE BAYER TRADEMARK AND TRADE NAME IN THE US IN MAY 1992 THE US DISTRICT COURT UPHELD STERLING'S CONTENTIONS AND GRANTED AN INJUNCTION AGAINST BAYER AG FOR VIOLATING AN AGREEMENT TO USE THE CORPORATE NAME ONLY IN SOME INSTITUTIONAL ADVERTISING BUT THE APPEALS COURT AGREED WITH BAYER AG'S CONTENTIONS THAT THE PREVIOUS INJUNCTION WAS UNJUST IN SEVERAL INSTANCES SUCH AS BARRING BAYER FROM USING THE BAYER NAME IN CONNECTION WITH ANY MEDICAL SYMPOSIUM CONFERENCE OR SEMINAR WITHIN THE US 9401110117 940111 STICKER SHOCK WEALTHY TAXPAYERS REIN IN THEIR SPENDING TO PAY FOR TAX INCREASE SOME DIP INTO THEIR SAVINGS EFFECTS OF THE CUTBACKS COULD WELL TRICKLE DOWN WE'RE TIGHTENING OUR BELTS' A WALL STREET JOURNAL NEWS ROUNDUP MR SPIX WAS READY FOREWARNED BY HIS ACCOUNTANT THE ATTORNEY ALREADY HAD DROPPED MEMBERSHIP IN THE POSH BUCKHEAD CLUB AND CANCELED PLANS TO BUY A HOME COMPUTER HE SCALED BACK SPENDING ON FINE RESTAURANTS AND CUSTOMMADE SUITS AND HE TONED DOWN HIS CHRISTMAS GIFTS THIS YEAR HIS NIECE AND NEPHEWS RECEIVED US SAVINGS BONDS MR SPIX AND FOUR REALESTATEINVESTMENT PARTNERS ALSO DECIDED TO WAIT ANOTHER YEAR BEFORE BREAKING GROUND FOR A NEW FRANCHISED RESTAURANT WHILE GROUSING ABOUT TAXES IS PRACTICALLY A NATIONAL PASTIME ESPECIALLY AMONG THE RICH INTERVIEWS WITH DOZENS OF TAXPAYERS AND ACCOUNTANTS ACROSS THE US SHOWED THAT HIGHINCOME TAXPAYERS HAVE BEEN MOVING FAST TO ADAPT TO THE TAX ACT WHICH COVERS WAGES PAID IN 1993 MANY ARE PUTTING OFF DISCRETIONARY PURCHASES AND CUTTING BACK ON SAVINGS BUT MANY ALSO ARE DEVISING WAYS TO OFFSET THE NEW TAX BITE BY ADJUSTING THEIR INCOME THE SOCALLED SOAKTHERICH TAX AFFECTS ONLY 2 OF TAXPAYERS BUT ITS IMPACT COULD BE FELT WELL INTO THE COUNTRY'S ECONOMIC FIBER OF LOWER AND MIDDLEINCOME TAXPAYERS AS WELL AS THEIR FIRST PAYCHECKS OF THE YEAR COME IN OR THEY PREPARE TO DRAW UP ESTIMATED TAX PAYMENTS MANY HIGHINCOME WAGE EARNERS ARE JUST NOW REALIZING THE TAX'S EFFECT THOUGH MANY INSIST THEY WILL HAVE TO CUT SPENDING THE IMPACT OF ANY CUTBACK MAY BE MUTED BY THE ECONOMY'S RECENT STRENGTH THE NEW LAW RAISES THE PREVIOUS MARGINAL TAX CEILING TO 36 FROM 31 FOR INDIVIDUALS WITH TAXABLE INCOME OVER 115000 HEADS OF HOUSEHOLDS WITH TAXABLE INCOMES OVER 127500 AND COUPLES FILING JOINTLY WITH TAXABLE INCOMES OVER 140000 ANYTHING OVER 250000 GOES TO A 396 MARGINAL RATE IN ADDITION THE 135000 CEILING ON THE 145 MEDICARE TAX WAS DROPPED SO NOW ALL OF A PERSON'S TAXABLE INCOME IS SUBJECT TO THE TAX SOME FOUR MILLION RETIRED PERSONS ALSO WILL HAVE TO PAY ABOUT 4 BILLION MORE IN TAXES ON THEIR SOCIAL SECURITY INCOME ANNE HARRIS OF WACO TEXAS WHO WILL BE 80 IN APRIL FOR INSTANCE EXPECTS TO PAY 1000 MORE IN TAXES THIS YEAR BECAUSE HER 627AMONTH SOCIAL SECURITY PAYMENT WILL BE TAXED AT 85 INSTEAD OF 50 IN VIEW OF THAT SHE SAYS I'M NOT GOING TO BE ABLE TO GIVE AS MUCH AWAY TO CHARITY MOST OF THOSE AFFECTED ARE TAKING IT IN STRIDE HIGHER TAXES WON'T RUIN MY LIFE BUT I DON'T SEE IT HELPING THE COUNTRY EITHER SAYS SAN FRANCISCO ANESTHESIOLOGIST STEVEN GOLDFIEN DR GOLDFIEN EXPECTS TO PAY 12000 MORE A YEAR IN TAXES ON THE COMBINED INCOME IN EXCESS OF 250000 HE AND HIS WIFE EARN THEY HAVE SCRAPPED PLANS TO BUY A LARGER HOME AND WILL FALL SHORT OF THEIR GOAL OF PUTTING ASIDE 20 OF THEIR INCOME FOR RETIREMENT TO BE SURE THE EFFECT ON THE ECONOMY IS UNCLEAR THE 27 BILLION OR SO THE GOVERNMENT EXPECTS TO RAISE THIS YEAR FROM HIGHER INDIVIDUAL TAXES WILL HELP REDUCE THE DEFICIT WHICH IN TURN COULD HELP HOLD DOWN INTEREST RATES AND STIMULATE GROWTH AT THE SAME TIME THOUGH A SIGNIFICANT CUTBACK IN SPENDING TO PAY THE TAXES COULD SLOW THE ECONOMIC PACE WORKMEN WON'T BE BUILDING THAT RESTAURANT FOR MR SPIX AND HIS PARTNERS FOR INSTANCE AND THE EMPLOYMENT OPPORTUNITIES FOR RESTAURANT PERSONNEL WILL DWINDLE IF DINING OUT DECLINES ECONOMISTS EXPECT INDIVIDUALS TO PAY FOR HALF OF THE TAX BITE BY REDUCING SPENDING AND THE REST BY REDUCING SAVINGS OR SELLING SOME INVESTMENTS TO MAINTAIN SPENDING PATTERNS FOR ALAN GRAHAM THE HEAD OF VASCULAR SURGERY AT A MEDICAL SCHOOL IN NEW JERSEY IT WILL BE A LITTLE OF BOTH HIS ACCOUNTANT TOLD HIM THAT BASED ON HIS SALARY WHICH THE 40YEAROLD DR GRAHAM DID NOT WANT DISCLOSED HE WOULD HAVE TO PAY ABOUT 23000 MORE A YEAR IN TAXES AS A RESULT HE SAYS WE WILL PUT OFF THE 30000 ADDITION TO THE HOUSE WE HAD PLANNED TO BEGIN THIS SPRING AND I WILL CUT BACK BY 6000 OR 7000 THE MONEY I PUT INTO MY RETIREMENT PLAN BUT IF PRELIMINARY ESTIMATES OR JANUARY'S FIRST PAYCHECK DON'T INDUCE STICKER SHOCK SIGNING TAX FORMS FOR 1993 MIGHT SOME FINANCIAL ADVISERS SAY THAT'S WHEN THE TOTAL WILL ALL ADD UP SAYS MIKE BAYLOR MANAGING PARTNER FOR COOPERS & LYBRAND IN FORT WORTH HE EXPECTS MANY PEOPLE WILL BE SURPRISED AT HOW LARGE THE INCREASE IS TAXPAYERS WILL HAVE THE OPTION OF PAYING ONE THIRD OF THEIR 1993 TAX INCREASE THIS YEAR AND WITHOUT PENALTY THE REST IN TWO ADDITIONAL YEARLY INSTALLMENTS IF YOU'RE EARNING BETWEEN 150000 AND 300000 AND SIMPLY WERE TOO BUSY TO PAY ATTENTION AND MAKE SOME CHANGES YOU WILL BE ABSOLUTELY SHOCKED THIS MONTH SAYS LARRY WINTER A FINANCIAL PLANNER IN MINNEAPOLIS HIS ADVICE TO CLIENTS IS TO INCREASE THE SIZE OF THEIR HOME MORTGAGES BECAUSE THE INTEREST PAID IS REALLY THE ONLY PLACE LEFT WHERE YOU CAN STILL GET THE LARGE DEDUCTION A STUDY OF AFFLUENT HOUSEHOLDS BY FIDELITY INVESTMENTS LAST NOVEMBER FOUND ONLY 17 STRONGLY FAMILIAR WITH THE NEW TAX LAWS THAT HAD BEEN PASSED THREE MONTHS EARLIER THE FIRM UNDERTOOK THE SURVEY SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT BECAUSE WE WERE SOMEWHAT PERPLEXED THERE WASN'T AN ENORMOUS INCREASE IN PEOPLE INVESTING IN TAXADVANTAGED VEHICLES SUCH AS MUNICIPAL BONDS THE TAX ACT WILL SHIFT SAVINGS PATTERNS FOR SURE TAXABLE BONDS AND HIGHDIVIDEND STOCK ARE LESS ATTRACTIVE SAY FINANCIAL PLANNERS BECAUSE THAT INCOME GETS TAXED AT A TAXPAYER'S HIGHEST RATE AT THE SAME TIME TAXEXEMPT STATE AND LOCAL SECURITIES LOOK BETTER AS DO STOCKS THAT MAY GAIN IN PRICE LONGTERM CAPITAL GAINS ON THOSE STOCKS REMAINS TAXABLE AT THE 28 RATE BUT MANY INDIVIDUALS WILL CUT BACK ON INVESTMENTS OF ANY SORT FOR DUNMAN PERRY JR CHAIRMAN OF PERRY EQUIPMENT CORP IN MINERAL WELLS TEXAS THE TAX RISE MEANS PUTTING 20000 LESS INTO MUNICIPAL BONDS THIS YEAR THAT'S A LITTLE MORE THAN THE AMOUNT BY WHICH HIS TAXES GO UP HE SAYS STEPHEN AXILROD VICE CHAIRMAN OF NIKKO SECURITIES IN NEW YORK WILL BE CUTTING BACK ON SAVINGS TOO BECAUSE HE SAYS HIS SPENDING ALREADY IS AT ROCK BOTTOM HE OBSERVES THAT IF MANY PEOPLE CUT BACK ON THEIR SAVINGS THAT COULD LESSEN A MAJOR BENEFIT OF THE DEFICIT REDUCTION ACT LOWER INTEREST RATES THE TAX ACT'S MOST DIRECT IMPACT ON BUSINESS GROWTH AND INVESTMENT WILL COME FROM TENS OF THOUSANDS OF SMALL BUSINESSES WHOSE OWNERS ARE TAXED AS INDIVIDUALS THESE S CORPORATIONS AS THEY ARE KNOWN HAVE 35 OR FEWER OWNERS WHILE ONLY 36 OF THEM REPORTED INCOMES OF MORE THAN 200000 THEY REPRESENTED 38 OF ALL THE INCOME FOR THAT GROUP SAYS MAURY HARRIS CHIEF ECONOMIST FOR PAINEWEBBER IT MEANS THEIR CASH FLOWS WILL NOT GROW AS FAST AND THEY WILL NOT HAVE AS MUCH TO PLOW BACK INTO THEIR BUSINESS HE SAYS HE ESTIMATES THEY WILL PAY ABOUT 5 BILLION IN ADDED TAXES IVAN DEBEL PRESIDENT OF MILLER & DEBEL PREPRESS SERVICES INC IN NEW YORK FOR INSTANCE PLANS TO REDUCE HIS LABOR FORCE OF 40 PEOPLE TO PAY HIS FIRM'S INCREASED TAXES IT IS EITHER THAT OR HOLD OFF PURCHASES OF NEW GRAPHICARTS EQUIPMENT HE NEEDS TO REMAIN COMPETITIVE WE'LL BUY THE EQUIPMENT BUT WE WILL FIND WAYS TO REDUCE LABOR COSTS WE MAY HAVE TO CUT SOME PEOPLE AND GIVE OVERTIME TO OTHERS TO DO THEIR WORK HE SAYS OTHER STRATEGIES BEGUN LAST YEAR ARE CONTINUING CHARITABLE CONTRIBUTIONS HAVE INCREASED AND MANY CHARITIES ARE LOOKING FORWARD TO HIGHER GIVING RATES THIS YEAR SOME SMALLBUSINESS OWNERS DECIDED TO TAKE MORE MARKETING TRIPS AND WILL CONTINUE DOING SO BECAUSE LIKE CHARITY GIVING IT IS LESS EXPENSIVE WHEN MARGINAL INCOME TAXES RISE WORKING SPOUSES IN SOME FAMILIES FACE CHOICES ABOUT WHAT IS COSTEFFECTIVE BETWEEN THE 39 TAX BRACKET AND PAYING FOR CHILD CARE SAYS BRENT BOSTICK PRESIDENT OF THE CREDITCARD SERVICE OPERATION OF A CLEVELAND BANK WHOSE SPOUSE IS WEIGHING A RETURN TO WORK IT KIND OF MAKES THE WIFE WORKING DECISION MARGINAL HE SAYS HE HASN'T FIGURED OUT HOW MUCH MORE HE WILL PAY BUT THE DAY OF RECKONING IS GOING TO COME PRETTY QUICK I'M MOST WORRIED ABOUT THE 1993 HIT REFERRING TO THE RETROACTIVE TAX INCREASE JUST AS THE TAX ACT MAY PERSUADE MRS BOSTICK TO STAY HOME IT ALSO WILL TAKE SOME OF THE INCENTIVE OUT OF WORKING HARDER FOR SOME ROBERT WILLARD A FINANCIAL PLANNER IN COLORADO SPRINGS COLO SAYS HE IS ADVISING SOME WELLOFF CLIENTS TO WORK FEWER HOURS THE MOTIVATION TO WORK HARD AND MAKE MONEY IS GONE SPEND TIME WITH YOUR FAMILY HE SAYS MR WILLARD SAYS SOME OF THOSE CLIENTS WHO ARE CUTTING BACK THEIR WORK HOURS ARE USING THEIR EXTRA TIME TO WORK WITH STARTUP BUSINESSES RATHER THAN ACCEPTING INCOME THEY WILL CONTRIBUTE LEGAL OR CONSULTATION SERVICES IN RETURN FOR A STAKE IN A NEW COMPANY EVEN MORE PROFOUND IS THE DECISION 48YEAROLD JAMES VALESTRINO AND HIS 31YEAROLD FIANCEE KELLY BALLINGER MADE LARGELY AS A RESULT OF THE TAXLAW CHANGE THE CALIFORNIA COUPLE HAVE PUT OFF TAKING THEIR WEDDING VOWS MARRIAGE WOULD COST US 7000 OR 8000 A YEAR SAYS MR VALESTRINO WHO EARNS MORE THAN 150000 A YEAR RUNNING HIS FAMILY'S LABEL BUSINESS MS BALLINGER'S INCOME AS A PURCHASING SUPERVISOR FOR A SUPERMARKET CHAIN IS LESS THAN A THIRD OF HIS AND HER TAX BRACKET WOULD JUMP TO 36 IF THEY GOT MARRIED IT WOULD HIT HER ESPECIALLY HARD PUSHING HER UP TO A BRACKET THAT MAY NO LONGER MAKE IT WORTHWHILE FOR HER TO WORK MR VALESTRINO SAYS BEYOND THE STRATEGIZING AND THE DEBATE ABOUT WHETHER PEOPLE IN THE 200000 TO 300000 TAXABLE INCOME BRACKET WILL THROTTLE BACK SPENDING THERE IS LITTLE DOUBT WHAT THE TRULY WEALTHY WILL DO THE SHORT ANSWER IS IT IS COMING OUT OF SAVINGS SAYS KEVIN BANNON CHIEF INVESTMENT OFFICER OF BANK OF NEW YORK CO WHICH MANAGES FUNDS FOR TRUST ACCOUNTS AND WEALTHY INDIVIDUALS BESIDES INHERITED WEALTH MANY OF HIS CLIENTS HAVE BENEFITED FROM THE RISE IN STOCK AND BOND PRICES OF THE PAST FEW YEARS PEOPLE HAVE SEEN THEIR NET WORTH RISE MORE THAN THEIR INCOMES BECAUSE OF CAPITAL APPRECIATION HE SAYS I THINK THEY ARE IN A POSITION TO SPEND A LITTLE OF THAT WEALTH ADDS MR HARRIS WHO HAS INQUIRED OF WEALTHY COLLEAGUES AND OTHER HIGHINCOME WALL STREETERS WHAT THEY INTEND TO DO THE SUPERBIGBUCKS WILL KEEP SPENDING IF THEY ALREADY HAVE A LOT THEY CAN DIP INTO CAPITAL TO MAINTAIN THEIR LIFESTYLES HE EXPECTS SALESMEN AND TRADERS EARNING AROUND 200000 ARE MORE LIKELY TO TIGHTEN THEIR BELTS TJ ROGERS CHIEF EXECUTIVE AND FOUNDER OF CYPRESS SEMICONDUCTOR CORP IN SAN FRANCISCO ISN'T MOANING OVER HIS INCREASE IN TAXES WHICH HE FIGURES COULD BE AS MUCH AS 20000 BUT HE DOES HAVE A GRIPE ABOUT THE IMPACT HE THINKS IT WILL HAVE ON THE ECONOMY THE TRAGEDY IS NOT THAT A RICH MAN WILL HAVE TO SETTLE FOR A NICE CALIFORNIA CABERNET INSTEAD OF A BOTTLE OF LAFITE ROTHSCHILD THE TRAGEDY IS THAT MONEY THAT COULD HAVE BEEN PRODUCTIVELY INVESTED WILL BE TAKEN OUT OF PEOPLE'S POCKETS AND SENT TO WASHINGTON WHERE IT WILL THEN BE WASTED JOHN ALSTON WHO OWNS AND RUNS A HUMANRESOURCES CONSULTING FIRM IN DALLAS WITH HIS WIFE IS JUST AS ANGRY WE LIKE TO EAT OUT A LOT AND WE MIGHT EAT OUT LESS WE LIKE TO TRAVEL AND WE MIGHT TRAVEL LESS WE BOTH LIKE NICE CLOTHES AND WE MIGHT BUY LESS HE SAYS OF THE TAX IMPACT BUT HE IS ALSO DECIDED TO DO SOMETHING ABOUT IT THE TAX HIKE HAS GALVANIZED US INTO SPENDING A LOT OF MONEY ON POLITICIANS IN THE PAST YEAR FOR THE FIRST TIME HE AND HIS WIFE BEGAN CONTRIBUTING TO POLITICAL CAMPAIGNS OF FISCAL CONSERVATIVES WHO AIM TO KEEP TAXES AND SPENDING LOW WE BOTH CAME FROM HUMBLE BEGINNINGS AND WORKED HARD HE SAYS OF THE MOTIVATION FOR HIS AND HIS WIFE'S CONTRIBUTIONS NOW WE'RE CHARACTERIZED AS PEOPLE WHO DIDN'T PAY OUR FAIR SHARE THAT'S CLASS WARFARE 9401110116 940111 BUSINESS BRIEFS HUGHES AIRCRAFT CO'S HUGHES NETWORK SYSTEMS WILL IMPLEMENT A SATELLITE NETWORK TO LINK THE 201 RETAIL OUTLETS AND DISTRIBUTION CENTERS OF JAPAN'S JUSCO STORES IN A DEAL WORTH 95 MILLION FUJITSU LTD WILL CONSTRUCT THE SATELLITE NETWORK FOR JUSCO USING PERSONAL EARTH STATION VSAT EQUIPMENT THAT HUGHES SUPPLIES HUGHES AIRCRAFT IS A UNIT OF GENERAL MOTORS CORP'S GM HUGHES ELECTRONICS SPRINT CORP WAS SELECTED BY FOUR SEASONS HOTELS INC TO PROVIDE TELECOMMUNICATIONS SERVICES TO ITS PROPERTIES DURING THE NEXT THREE YEARS IN A CONTRACT VALUED AT MORE THAN 9 MILLION PLATINUM TECHNOLOGY INC COMPLETED ITS ACQUISITION OF A DIVISION OF SEQUEL UK LTD AND RENAMED THE COMPANY PLATINUM UK TERMS WEREN'T DISCLOSED COLEMAN CO ACQUIRED COLEMAN SPAS INC CHANDLER ARIZ FOR ABOUT 84 MILLION FROM MERIDIAN SPORTS INC A SUBSIDIARY OF MACANDREWS & FORBES HOLDINGS INC TYLER CORP COMPLETED THE PURCHASE OF INSTITUTIONAL FINANCING SERVICES BENICIA CALIF FOR ABOUT 50 MILLION AND THE ASSUMPTION OF RESPONSIBILITY FOR SEASONAL WORKINGCAPITAL DEBT SEAGRAM CO'S TROPICANA PRODUCTS INC UNIT SAID IT AGREED DEFINITIVELY TO ACQUIRE HITCHCOCK A LEADING GERMAN PREMIUM FRUITJUICE BRAND FROM CLOSELY HELD DEINHARD & CO 9401110115 940111 IRS SEC PLAN COORDINATED EFFORT TO POLICE MUNIS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE AND THE SECURITIES AND EXCHANGE COMMISSION HAVE DECIDED TO COORDINATE THEIR EFFORTS TO POLICE THE TAXEXEMPT BOND INDUSTRY THE AGREEMENT COMES AT A TIME WHEN BOTH AGENCIES HAVE STEPPED UP THEIR SCRUTINY OF THE MUNICIPALBOND MARKET WHICH FROM TIME TO TIME HAS GENERATED ABUSES THAT HAVE POSED QUESTIONS UNDER BOTH TAX AND SECURITIES LAW SENIOR IRS AND SEC OFFICIALS AGREED ON THE COORDINATION INITIATIVE AT A RECENT MEETING ACCORDING TO THE IRS THE IRS ALSO PROVIDED NEW DETAILS YESTERDAY ABOUT ITS STEPPEDUP ENFORCEMENT IN THE MUNICIPALBOND AREA THE AGENCY SAID IT'S INCREASING THE STAFF DEVOTED TO BOND MATTERS EXPANDING THE BOND TRAINING OF AGENTS AND OTHER STAFFERS INCREASING THE NUMBER OF EXAMINATIONS AND INQUIRIES AND DEVELOPING METHODS TO BETTER TARGET POTENTIAL AREAS OF ABUSE MARCUS OWENS DIRECTOR OF THE IRS'S EXEMPT ORGANIZATIONS TECHNICAL UNIT SAID THE SEC AND THE IRS AGREED IT WOULD BE IN THEIR MUTUALINTEREST TO SHARE AS MUCH MUNICIPAL BOND INFORMATION AS POSSIBLE CONSISTENT WITH CONFIDENTIALITY LAWS OBVIOUSLY VIOLATIONS ON ONE SIDE COULD LEAD TO VIOLATIONS ON THE OTHER SIDE SAID RICHARD CHIRLS A BOND ATTORNEY AT ORRICK HERRINGTON & SUTCLIFFE ABOUT THE INTERPLAY BETWEEN THE TAX AND SECURITIES LAWS IN THE MUNI AREA BY WORKING TOGETHER IT WILL MAKE FOR A MUCH MORE EFFICIENT FEDERAL GOVERNMENT IN BOTH SETS OF LAWS ASSISTANT IRS COMMISSIONER JAMES MCGOVERN GOT THE COORDINATION INITIATIVE ROLLING LATE LAST YEAR SAYING IN A LETTER TO SEC ENFORCEMENT CHIEF WILLIAM MCLUCAS THAT ENHANCED COORDINATION COULD BE OF GREAT VALUE TO BOTH OUR COMPLIANCE PROGRAMS SOME ADVOCATES OF STRONGER MUNI ENFORCEMENT HAVE URGED SEC ACTION IN CASES INVOLVING BONDS THAT ARE SOLD TO INVESTORS AS TAXEXEMPT SECURITIES BUT ARE LATER DECLARED TAXABLE THE IRS SAID CERTAIN AREAS OF ARBITRAGERELATED ABUSES WOULD BE ON ITS FRONTBURNER ARBITRAGE IS EARNED IN THE MUNI MARKET BY INVESTING BOND PROCEEDS IN HIGHERYIELDING OBLIGATIONS THE AGENCY SAID IT WILL FOCUS ON OPENMARKET PURCHASES OF TREASURY OBLIGATIONS FOR ADVANCE REFUNDING ESCROWS AND LONGTERM GUARANTEED INVESTMENT CONTRACTS IN PARTICULAR IT SAID SOME ISSUERS OF TAXEXEMPT BONDS MAY HAVE BEEN PAYING MORE THAN THE FAIR MARKET VALUE FOR INVESTMENTS PURCHASED WITH THE PROCEEDS OF THE BONDS ANOTHER AREA OF CONCERN IS BONDS THAT BACKLOAD THE PAYMENT OF DEBT SERVICE SOME OF THESE BONDS ARE ISSUED FOR LEGITIMATE PURPOSES IT SAID BUT THEY HAVE A PARTICULAR POTENTIAL FOR ARBITRAGE AND OTHER TYPES OF NONCOMPLIANCE 9401110114 940111 BUSINESS BRIEF NATIONAL STEEL CORP TO REPORT A CHARGE FOR FOURTH QUARTER MISHAWAKA IND NATIONAL STEEL CORP SAID IT EXPECTS TO REPORT A FOURTHQUARTER CHARGE OF 120 MILLION TO 135 MILLION LARGELY DUE TO TEMPORARY IDLING OF ITS NATIONAL STEEL PELLET CO SUBSIDIARY THE CHARGE INCLUDES AN INVENTORY ADJUSTMENT OF ABOUT 15 MILLION CAUSED BY THE DEPLETION OF HIGHER COST IRONORE PELLET INVENTORY LEVELS DUE TO THE PLANT'S IDLING ALONG WITH THE SHIFT IN THE COST AND MIX OF STEEL INVENTORY LEVELS ALSO INCLUDED IN THE CHARGE IS 15 MILLION TO 20 MILLION FOR EARLY ADOPTION OF RETIREMENT BENEFITS ABOUT 90 MILLION TO 100 MILLION OF THE CHARGE RELATES TO THE IDLING OF THE KEEWATIN MINN PELLET PLANT WHICH EMPLOYS ABOUT 700 IT HAS BEEN CLOSED SINCE AUG 1 BECAUSE OF A STRIKE THE COMPANY ANNOUNCED IN MIDOCTOBER THAT IT WOULD IDLE THE PLANT BECAUSE IT WAS UNABLE TO REACH A NEW CONTRACT WITH THE UNITED STEELWORKERS OF AMERICA AND AS A RESULT MISSED A DEADLINE TO SIGN A LONGTERM INTERRUPTIBLE POWER CONTRACT THE STEELMAKER ABOUT 70OWNED BY JAPAN'S NKK CORP ALSO SAID IT WILL LOWER THE DISCOUNT RATE USED TO CALCULATE PENSION LIABILITIES TO 75 FROM 875 WHICH IT SAID WOULDN'T HAVE AN IMPACT ON NATIONAL'S INCOME STATEMENT BUT COULD MINIMALLY AFFECT SHAREHOLDERS' EQUITY THE COMPANY INTENDS TO ANNOUNCE ITS 1993 RESULTS ON OR ABOUT JAN 26 NATIONAL WITH 10000 EMPLOYEES IS THE US'S FOURTHLARGEST INTEGRATED STEEL PRODUCER WITH ANNUAL SHIPMENTS OF ABOUT FIVE MILLION TONS OF FLATROLLED PRODUCTS 9401110113 940111 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BIOCRYST PHARMACEUTICALS INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA DILLON READ & CO AND NEEDHAM & CO CEPHALON INC AN OFFERING OF THREE MILLION COMMON SHARES VIA COWEN & CO HAMBRECHT & QUIST INC AND ROBERTSON STEPHENS & CO GLOBAL VILLAGE COMMUNICATION INC AN INITIAL OFFERING OF 24 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND HAMBRECHT & QUIST ISTITUTO MOBILIARE ITALIANO AN INITIAL OFFERING OF 35 MILLION COMMON SHARES VIA MORGAN STANLEY & CO CS FIRST BOSTON MABON SECURITIES CORP AND SG WARBURG & CO TRISM INC AN INITIAL OFFERING OF 1830000 COMMON SHARES VIA ALEX BROWN & SONS INC AND SMITH BARNEY SHEARSON INC USF&G CORP A SHELF OFFERING FOR 200 MILLION OF DEBT SECURITIES PREFERRED STOCK COMMON STOCK AND WARRANTS 9401110112 940111 ECONOMY INTERSTATE BANKING GIVEN BOOST BY US NEW JERSEY'S FIRST FIDELITY PENNSYLVANIA BRANCHES CLEARED TO CONSOLIDATE BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY GAVE INTERSTATE BANKING A BOOST BY ALLOWING FIRST FIDELITY BANCORP TO CONSOLIDATE ITS BRANCHES IN NEW JERSEY AND PENNSYLVANIA INTO ONE UNIFIED SYSTEM THE DECISION THE FIRST OF ITS KIND WILL ALLOW THE BANKHOLDING COMPANY BASED IN NEWARK NJ TO SAVE MILLIONS OF DOLLARS A YEAR BY RUNNING A SEAMLESS OPERATION IN THE TWO ADJACENT STATES UNTIL THE DECISION BANKING LAWS REQUIRED FIRST FIDELITY TO RUN SEPARATELY ORGANIZED BANKS IN EACH STATE FIRST FIDELITY NOW CAN BETTER SERVE ITS CUSTOMERS IN ITS CROSSSTATE METROPOLITAN MARKETS IN PENNSYLVANIA AND NEW JERSEY COMPTROLLER EUGENE LUDWIG SAID THE DECISION STOPS WELL SHORT OF GIVING BANKHOLDING COMPANIES WITH OPERATIONS IN SEVERAL STATES THE AUTHORITY TO RUN THEIR BANKS AS ONE UNIFIED BRANCH NETWORK RATHER THAN AS SEPARATELY CHARTERED AND MANAGED BANKS THAT WOULD REQUIRE CONGRESS TO CHANGE FEDERAL BANKING LAW BUT IT WILL ALLOW SIGNIFICANT CONSOLIDATION AND COST SAVINGS BY COMPANIES WITH BANKS OPERATING ON BOTH SIDES OF A STATE LINE NATIONSBANK CORP ALREADY HAS APPLIED TO FOLD BANKS IN MARYLAND AND THE DISTRICT OF COLUMBIA INTO ONE SYSTEM RODGIN COHEN A BANKING LAWYER WITH SULLIVAN & CROMWELL SAID THAT A NUMBER OF OTHER BANKS ARE POISED TO APPLY FOR SIMILAR CONSOLIDATION YESTERDAY MR LUDWIG JOCULARLY REFERRED TO THE COMPTROLLER'S DECISION AS THE COHEN PLAN BECAUSE IT WAS MR COHEN WHO HELPED FIGURE OUT HOW TO USE A SEEMINGLY TECHNICAL CLAUSE IN FEDERAL BANKING LAW TO ACHIEVE THE TYPE OF CONSOLIDATION BANKS HAVE BEEN SEEKING THE LAW ALLOWS A NATIONAL BANK TO MOVE ITS HEADQUARTERS TO ANOTHER LOCATION WITHIN 30 MILES IN THE PAST WHEN THE COMPTROLLER APPROVED SUCH MOVES ACROSS STATE LINES THE BANK HAD TO SHED ITS BRANCH NETWORK IN THE STATE IT WAS LEAVING MR COHEN PERSUADED THE COMPTROLLER THAT FIRST FIDELITY SHOULD BE ALLOWED TO TRANSFER THE HEADQUARTERS OF FIRST FIDELITY BANK OF PENNSYLVANIA TO SALEM NJ FROM PHILADELPHIA AND TO RUN THE ENTIRE SYSTEM AS ONE ENTITY OUT OF NEW JERSEY FIRST FIDELITY HAS ASSETS OF MORE THAT 31 BILLION BOTH MR LUDWIG AND TREASURY SECRETARY LLOYD BENSTEN HAVE SAID THAT THEY FAVOR ALLOWING BANKS TO RUN MULTISTATE BRANCH NETWORKS AND SUCH A CHANGE IS AT THE TOP OF THE LEGISLATIVE AGENDA OF SUCH BANKING COMPANIES AS BANKAMERICA CORP AND NATIONSBANK DESPITE STRONG SUPPORT FOR BRANCHING IN CONGRESS THE LEGISLATION HAS FAILED BECAUSE OF DISPUTES OVER THE SCOPE OF INSURANCE SALES BY BANKS 9401110111 940111 KARCHER ENTERPRISES TO BECOME FRANCHISEE OF BOSTON CHICKEN ANAHEIM CALIF CARL KARCHER ENTERPRISES INC SAID IT SIGNED A DEFINITIVE LETTER OF INTENT TO BECOME A FRANCHISEE OF BOSTON CHICKEN INC WITH PLANS TO DEVELOP AND OPERATE AS MANY AS 300 BOSTON CHICKEN OUTLETS IN SOUTHERN CALIFORNIA AND SACRAMENTO CALIF CARL KARCHER ENTERPRISES WHICH OPERATES THE CARL'S JR HAMBURGER CHAIN SAID THE DEAL WILL PERMIT IT TO CAPTURE A NEW CONSUMER MARKET SEGMENT WHICH IS DISTINCT AND SEPARATE FROM OUR CURRENT CUSTOMERS THE COMPANY EXPECTS TO OPEN AT LEAST 60 STORES BY THE END OF 1995 IT SAID THAT THE DEAL WON'T HAVE AN IMPACT THE EXPANSION STRATEGIES CURRENTLY UNDER WAY AT CARL'S JR IN NASDAQ STOCK MARKET TRADING YESTERDAY CARL KARCHER SHARES SOARED 2 OR 17 TO 13625 AND BOSTON CHICKEN SHARES JUMPED 375 OR 10 TO 41 THE SPOTLIGHT HAS BEEN ON CARL KARCHER ENTERPRISES RECENTLY LARGELY BECAUSE OF THE PERSONAL FINANCIAL TROUBLES OF ITS FORMER CHAIRMAN CARL N KARCHER THE COMPANY LAST MONTH SAID MR KARCHER WOULD BE NAMED CHAIRMAN EMERITUS IF HE COMPLETES A COMPLICATED REFINANCING OF HIS PERSONAL BANK DEBT BOSTON CHICKEN WHICH HAD A VERY SUCCESSFUL INITIAL PUBLIC OFFERING RECENTLY CURRENTLY OPERATES 221 STORES SERVING ROTISSERIE CHICKEN AND HAS AMBITIOUS GROWTH PLANS IT SAID THAT THE TERRITORY COVERED BY THE KARCHER AGREEMENT IS THE LARGEST IT HAS GRANTED TO DATE LAST WEEK IT AGREED TO ACQUIRE 84 ROY ROGERS RESTAURANTS IN THE PHILADELPHIA AREA FROM HARDEE'S FOOD SYSTEMS INC FOR 223 MILLION 9401110110 940111 BEAR STEARNS COS' BEIJING OFFICE NEW YORK BEAR STEARNS COS SAID ITS INVESTMENT BANKING AND BROKERAGE UNIT OPENED A REPRESENTATIVE OFFICE IN BEIJING DONALD TANG SENIOR MANAGING DIRECTOR WILL BE THE FIRM'S REPRESENTATIVE AND YUCHENG DING WILL BE PERMANENTLY BASED IN THE NEW OFFICE BEAR STEARNS RECEIVED THE LICENSE TO OPEN THE REPRESENTATIVE OFFICE DEC 29 FROM THE PEOPLE'S BANK OF CHINA MR TANG IS ALSO PRESIDENT OF BEAR STEARNS ASIA WHICH IS BASED IN HONG KONG 9401110109 940111 LUFKIN INDUSTRIES DIVISION LUFKIN TEXAS LUFKIN INDUSTRIES INC SAID IT ENDED ITS EFFORTS TO SELL ITS TRAILER DIVISION OPERATIONS AND RELATED ASSETS LUFKIN SAID THAT SINCE ITS ANNOUNCEMENT OF PLANS TO SELL ITS TRAILER DIVISION IN 1991 THE UNIT HAS SHOWN POSITIVE CASH FLOW AND FOR THE FIRST NINE MONTHS OF 1993 IT EARNED 671000 DURING THAT PERIOD THE COMPANY OVERALL REPORTED A LOSS OF 1 MILLION OR 15 CENTS A SHARE LUFKIN A MAKER OF OIL FIELD PUMPING UNITS SAID IT ANTICIPATES ITS TRAILER DIVISION WILL TURN A PROFIT THIS YEAR 9401110108 940111 CFTC CHARGES TRADERS WITH UNLAWFUL TRADES OF TBOND FUTURES CHICAGO THE COMMODITY FUTURES TRADING COMMISSION FILED ADMINISTRATIVE ENFORCEMENT ACTIONS AGAINST TWO TRADERS ACCUSED OF UNLEASHING A WAVE OF UNAUTHORIZED FUTURES TRADES AT THE CHICAGO BOARD OF TRADE THE COMPLAINT ACCUSES ANTHONY P CATALFO AND DARRELL M ZIMMERMAN TWO FORMER CBOT TRADERS OF ENGAGING IN A SCHEME TO MANIPULATE PRICES OF TREASURYBOND FUTURES AND OPTIONS CONTRACTS MESSRS ZIMMERMAN AND CATALFO HAVE ALSO BEEN INDICTED ON FRAUD CHARGES BY THE US ATTORNEY'S OFFICE IN CHICAGO THE TWO MEN WERE UNAVAILABLE FOR COMMENT ON OCT 22 1992 THE CFTC COMPLAINT ALLEGES BOTH MEN ACTED TOGETHER IN A SCHEME TO INFLUENCE TBOND OPTIONS PRICES BY SELLING THOUSANDS OF FUTURES CONTRACTS ON THE CBOT FLOOR ACCORDING TO THE COMPLAINT THE TWO MEN HAD NEITHER AUTHORIZATION TO EXECUTE THE HUGE TRADES NOR SUFFICIENT FUNDS TO PAY FOR THE TRADES WHICH PRODUCED ABOUT 85 MILLION IN LOSSES FOR LEE B STERN & CO THE FIRM THAT CLEARED MR ZIMMERMAN'S TRADES 9401110107 940111 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 7 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BLOOMINGTON IND WILL REDEEM ON FEB 1 1994 ITS 9375 FIRST MORTGAGE BONDS SERIES A 1980 DUE FEB 1 2006 BANK ONE INDIANAPOLIS IS TRUSTEE MARYLAND HEALTH & HIGHER EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON FEB 7 1994 THE FOLLOWING REVENUE REFUNDING BONDS EDENWALD ISSUE SERIES 1986 DUE JAN 1 OF THE INDICATED YEARS 65 DUE 1995 675 DUE 1996 7 DUE 1997 725 DUE 1998 75 DUE 2002 AND 775 DUE 2014 MERCANTILESAFE DEPOSIT & TRUST COMPANY BALTIMORE IS TRUSTEE 9401110106 940111 WHO'S NEWS ATLANTIC RECORDS TO NAME GOLDBERG AS ITS PRESIDENT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S ATLANTIC RECORDS DIVISION SAID IT WILL NAME DANNY GOLDBERG AS ITS PRESIDENT A JOB THAT HAS BEEN VACANT SINCE 1990 MR GOLDBERG CURRENTLY SENIOR VICE PRESIDENT AT ATLANTIC IS CREDITED WITH WOOING CUTTINGEDGE ROCK BANDS TO ATLANTIC BOOSTING THE LABEL'S MARKET SHARE IN 1993 HE FILLS THE POST LAST HELD BY DOUG MORRIS WHO WAS PROMOTED THREE YEARS AGO TO COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER JOINTLY HEADING THE COMPANY WITH AHMET ERTEGUN WHO COFOUNDED IT IN THE 1940S WITHIN TIME WARNER ATLANTIC HAS BEEN OVERSHADOWED IN RECENT YEARS BY SISTER LABELS WARNER MUSIC AND ELEKTRA RECORDS BUT MR MORRIS HAS BEEFED UP ATLANTIC BY LATELY HIRING A NEW GENERATION OF CREATIVE YOUNG MANAGERS LED BY MR GOLDBERG ATLANTIC IS NOW DOING BETTER IN MANY GENRES INCLUDING COUNTRY MUSIC AND BLACK POP MUSIC BUT ATTRACTING MR GOLDBERG TO THE COMPANY 18 MONTHS AGO WAS PART OF A STRATEGY TO CHANGE ATLANTIC'S STODGY IMAGE IN ROCK MUSIC MR GOLDBERG 43 YEARS OLD PREVIOUSLY MANAGED A ROSTER OF ARTISTS THAT INCLUDED FOLKROCKER BONNIE RAITT AND NIRVANA ONE OF THE HOTTEST GRUNGEROCK GROUPS OF THE '90S AS A SENIOR VICE PRESIDENT MR GOLDBERG ENGINEERED THE ACQUISITION OF THREE SMALL BUT PRESTIGIOUS INDEPENDENT ROCK LABELS BEGGAR'S BANQUET MAMMOTH RECORDS AND MATADOR RECORDS MR GOLDBERG ALSO SIGNED STONE TEMPLE PILOTS WHOSE FIRST ALBUM WITH ATLANTIC HAS SOLD THREE MILLION COPIES SO FAR MAKING IT ATLANTIC'S MOST SUCCESSFUL ROCK ACT IN 1993 STEVE STEWART MANAGER OF STONE TEMPLE PILOTS BAND SAID HE HAD BEEN WARNED TO AVOID SIGNING WITH ATLANTIC BECAUSE EVERYBODY SAID IT WAS STALE BUT WAS CONVINCED BY MR GOLDBERG THAT HE REALLY UNDERSTOOD HOW TO BUILD A BAND'S CAREER NOT JUST PRODUCE ONEHIT WONDERS IT REMAINS TO BE SEEN HOW THE GROUP'S CAREER WILL PLAY OUT ALONG THE WAY MR GOLDBERG ADVISED STONE TEMPLE PILOTS TO TURN DOWN WHAT SEEMED LIKE A GREAT OFFER TO BE THE OPENING ACT FOR ROCK BAND AEROSMITH THE YOUNG BAND WOULD HAVE BEEN EXPOSED TO A HUGE AUDIENCE BUT MR GOLDBERG FELT THE CONCERTS WOULDN'T ATTRACT THE YOUNG HIP AUDIENCE THAT WOULD BUILD THE BAND'S STREET CREDIBILITY INSTEAD HE ADVISED THEM TO TOUR WITH A GRUNGIER GROUP CALLED BUTTHOLE SURFERS AND THOUGH THE AUDIENCES WERE SMALLER THE BAND BELIEVES THAT TOUR HELPED THEM GET PLAYED ON COLLEGE RADIO STATIONS AND GAIN THE CREDIBILITY THEY WANTED NIXING THE AEROSMITH TOUR GOT LOTS OF ATTENTION IN THE MUSIC PRESS WHICH WAS FINE WITH MR GOLDBERG WE REALLY MILKED THAT CONTROVERSY SAYS MR GOLDBERG I'M TRYING TO REINVENT ATLANTIC SO IT BECOMES ONE OF THE MOST ATTRACTIVE LABELS FOR MODERN AND ALTERNATIVE ROCKERS 9401110105 940111 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 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 306 30 TO 59 DAYS 309 60 TO 89 DAYS 311 90 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 325 180 TO 239 DAYS 333 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 315 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 261 THREE MONTHS 275 SIX MONTHS 297 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 317 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 303 60 DAYS 306 90 DAYS 309 120 DAYS 314 150 DAYS 319 180 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 587 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 684 60 DAYS 694 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 682 60 DAYS 692 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 9401110104 940111 MARKETING & MEDIA COCACOLA PLANS ITS OWN NETWORK WITH A SHORT LIFE THIS SUPER BOWL BROADCAST IN PRIME TIME WILL ACCEPT ADS FROM OTHER CONCERNS BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL COCACOLA CO IN A BOLD MOVE TO STEAL SOME COMMERCIAL THUNDER FROM SPONSORS OF SUPER BOWL XXVIII IS STARTING ITS OWN CABLE TELEVISION NETWORK EVEN THOUGH THE NETWORK HAS A LIFE EXPECTANCY OF ONLY FOUR DAYS THE PROGRAMMING WILL BE SHOWN IN PRIMETIME FROM JAN 27 TO JAN 30 AND IT WILL ORIGINATE FROM A NEW 145SEAT TELEVISION STUDIO ADJACENT TO THE COCACOLA MUSEUM IN ATLANTA HOST CITY TO THIS YEAR'S SUPER BOWL A COCACOLA SPOKESMAN IN ATLANTA DECLINED TO COMMENT PENDING A NEWS CONFERENCE TODAY HOWEVER ACCORDING TO SEVERAL OFFICIALS WITH KNOWLEDGE OF THE PLAN COKE IS TRYING TO BREAK THROUGH THE TRADITIONAL SUPER BOWL ADVERTISING HYPE THE PROGRAMMING IS EXPECTED TO INCLUDE BEHIND THE SCENE REPORTS ABOUT PREPARATIONS FOR THE JAN 30 GAME AT THE GEORGIA DOME AS WELL AS LIFESTYLE SEGMENTS ABOUT THE PLAYERS THE CHANNEL WILL BE SEEN IN THREE MILLION HOUSEHOLDS SUBSCRIBING TO SPORTSOUTH WHICH IS AVAILABLE IN SEVEN SOUTHEASTERN STATES FURTHERMORE NEGOTIATIONS ARE UNDER WAY TO CARRY THE CHANNEL IN CABLE SYSTEMS THAT COULD REACH 37 MILLION TO 45 MILLION HOUSEHOLDS NO MATTER HOW MANY VIEWERS COKE ULTIMATELY CAPTURES THAT FIGURE WILL CERTAINLY BE OVERSHADOWED BY THE EXPECTED AUDIENCE OF OVER 100 MILLION WATCHING THE ACTUAL SUPER BOWL BROADCAST IN AN UNUSUAL MOVE ADVERTISING ON COKE'S CHANNEL WON'T BE CONFINED TO THE SOFT DRINK ACCORDING TO INDUSTRY OFFICIALS THE CHANNEL PLANS TO ACCEPT ADVERTISING FROM OTHER COMPANIES THE COKE CHANNEL ACTUALLY WILL EXIST WITHIN A LARGER NICHE NETWORK NFL SUPER BOWL CHANNEL WITH SUPER BOWLRELATED PROGRAMMING FROM THE NFL BUT OFFICIALS SAY THE COKE CHANNEL WILL BE SEEN IN PRIME TIME WHEN THE AUDIENCE IS LARGEST THE COCACOLA BIG TV NETWORK WILL BROADCAST A TOTAL OF SEVEN HOURS INCLUDING ONE HOUR JAN 27 TWO HOURS JAN 28 THREE HOURS THE NIGHT BEFORE THE SUPER BOWL AND ONE HOUR THE NIGHT OF THE FOOTBALL CLASSIC A COKE LOGO WILL MOST LIKELY APPEAR ON THE LOWER RIGHT PORTION OF THE SCREEN THROUGHOUT THE PROGRAMS IF THE SUPER BOWLRELATED TELECASTS PERFORM WELL FROM A MARKETING STANDPOINT COKE MAY ESTABLISH SIMILAR NETWORKS AROUND OTHER MAJOR EVENTS INCLUDING COLLEGE BASKETBALL PLAYOFFS IN SPITE OF COKE'S OBVIOUS INTEREST IN THE SUPER BOWL THE COMPANY ISN'T A SPONSOR OF THE GAME WHICH WILL BE BROADCAST BY GENERAL ELECTRIC CO'S NBC NETWORK INSTEAD RIVALS PEPSICOLA A UNIT OF PEPSICO INC AND SEVENUP A UNIT OF DR PEPPER/SEVENUP COS ARE ADVERTISING AT A HEFTY 900000 FOR EACH HALFMINUTE COMMERCIAL IN A RELATED MOVE COKE RECENTLY SIGNED A SPONSORSHIP AGREEMENT WITH THE NFL ESTIMATED AT OVER 50 MILLION TED SHAKER A FORMER EXECUTIVE PRODUCER OF CBS SPORTS A UNIT OF CBS INC IS IN CHARGE OF THE COKE CABLE PROGRAMMING ONCAMERA PERSONALITIES INCLUDE CBS SPORTS CORRESPONDENTS PAT O'BRIEN TERRY BRADSHAW LESLEY VISSER AND JIM GRAY PEPSI WHICH HAS ADVERTISED ON THE SUPER BOWL SINCE 1985 IS USING THREE CELEBRITIES THIS YEAR IN ITS COMMERCIALS CREATED BY OMNICOM GROUP'S BBDO MICHAEL RICHARDS WHO PLAYS THE WACKY NEIGHBOR KRAMER IN NBC'S SEINFELD SERIES MODEL CINDY CRAWFORD AND COMEDIAN RODNEY DANGERFIELD THE THREE ARE SCHEDULED TO APPEAR IN ONE AD ASKED TO COMMENT ON COKE'S PLANS A PEPSI SPOKESWOMAN SAID ANYTHING THAT CREATES MORE EXCITEMENT AND GETS MORE PEOPLE TO TUNE INTO THE GAME IS OK