SAN FRANCISCO CHIRON CORP EXPECTS TO RESOLVE ITS MANUFACTURING SHORTAGE OF THE DRUG BETASERON CURRENTLY SUPPLIED TO MULTIPLE SCLEROSIS PATIENTS BY LOTTERY IN THE FOURTH QUARTER OF 1994 EDWARD PENHOET PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BIOTECHNOLOGY COMPANY SAID CHIRON HOPES FOR FOOD AND DRUG ADMINISTRATION APPROVAL OF ITS CURRENT PLANT EXPANSIONS BY YEAR END SO THAT ALL MS PATIENTS CAN BE SUPPLIED NO LATER THAN THE 1995 FIRST QUARTER BETASERON A GENESPLICED VERSION OF THE NATURAL PROTEIN BETA INTERFERON IS MANUFACTURED BY CHIRON AND MARKETED BY THE BERLEX LABORATORIES UNIT OF GERMANY'S SCHERING AG LAST FALL ABOUT 70000 MS PATIENTS SIGNED UP FOR BETASERON THROUGH A BERLEXSPONSORED LOTTERY SO FAR CHIRON HAS BEEN ABLE TO SUPPLY DRUGS FOR 15000 TO 20000 OF THEM MORE THAN 100000 SUCH PATIENTS ARE DEEMED ELIGIBLE TO RECEIVE THE DRUG UNDER CURRENT FDA LABELING INCREASING BETASERON CAPACITY SHOULD HELP CHIRON ACHIEVE A SUSTAINABLE PROFITGROWTH CURVE IN 1994 DR PENHOET SAID ANALYSTS EXPECT CHIRON TO POST 1993 PROFIT IN THE RANGE OF 30 CENTS A SHARE TO 60 CENTS A SHARE BUT DR PENHOET DECLINED ANY PRECISE FORECAST FOR 1994 HE MADE HIS REMARKS AT THE HAMBRECHT & QUIST LIFE SCIENCES CONFERENCE HERE SEPARATELY CHIRON YESTERDAY SAID IT ACQUIRED A 15 MILLION EQUITY STAKE IN CEPHALON INC IN WEST CHESTER PENN CEPHALON A DEVELOPER OF TREATMENTS FOR NEUROLOGICAL DISORDERS WILL COLLABORATE WITH CHIRON ON DEVELOPMENT OF TREATMENTS INCLUDING INSULINLIKE GROWTH FACTOR FOR LOU GEHRIG'S DISEASE TECHNICALLY KNOWN AS AMYOTROPHIC LATERAL SCLEROSIS ALS CHIRON'S INVESTMENT COVERS PURCHASE OF 750000 COMMON SHARES OF CEPHALON AND WARRANTS FOR THE PURCHASE OF AN EQUAL NUMBER OF ADDITIONAL SHARES 9401110102 940111 FHP AGREES TO PURCHASE TAKECARE INC PLAN WOULD DOUBLE BASE OF HMO CUSTOMERS AND COST 829 MILLION BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL FHP INTERNATIONAL CORP SEEKING TO DOUBLE THE NUMBER OF PERSONS SERVED BY ITS HEALTH MAINTENANCE ORGANIZATIONS SIGNED A PRELIMINARY AGREEMENT TO ACQUIRE TAKECARE INC FOR 829 MILLION IN CASH AND SECURITIES THE PROPOSED ACQUISITION WOULD CREATE ONE OF THE NATION'S TOP THREE PUBLICLY TRADED HMOS WITH MORE THAN 16 MILLION MEMBERS IN EIGHT STATES AND ANNUAL REVENUE EXCEEDING 325 BILLION IN COLORADO AND UTAH THE NEW ENTITY WOULD BE THE INDUSTRY LEADER AND IN THE IMPORTANT CALIFORNIA MARKET WHERE THE COMBINED OPERATION WOULD RANK NO 3 AMONG HMOS AND GIVE FHP A BIGGER PRESENCE IN THE NORTHERN PART OF THE STATE THE MERGED CONCERN WOULD BE ABLE TO MORE AGGRESSIVELY OFFER SERVICES TO MEDICARE BENEFICIARIES STATEWIDE THE COMPANIES SAID TAKECARE SHAREHOLDERS WOULD RECEIVE 62 IN CASH AND SECURITIES FOR EACH SHARE REACTING TO THE NEWS TAKECARE SHARES CLOSED YESTERDAY AT 5825 UP 650 AND FHP AT 2650 UNCHANGED BOTH IN NASDAQ STOCK MARKET TRADING WITH CONSOLIDATION IN THE HEALTHCARE INDUSTRY EXECUTIVES FROM BOTH COMPANIES STRESSED THAT THE NEW ENTITY WOULD BE BETTER ABLE TO RESPOND TO CHANGES IN THE MANAGEDCARE FIELD AND OTHER PROPOSALS TO OVERHAUL THE HEALTHCARE SYSTEM FHP IS BASED IN FOUNTAIN VALLEY CALIF AND TAKECARE IN CONCORD CALIF THIS WILL POSITION US AS A WESTERNBASED OPERATION SAID JACK MASSIMINO FHP'S CHIEF OPERATING OFFICER WHILE ALSO PROVIDING NEW OPPORTUNITIES FOR GROWTH IN MIDWESTERN MARKETS ABOUT TWO YEARS AGO FHP MADE AN UNSUCCESSFUL BID TO INCREASE ITS POSITION IN NORTHERN CALIFORNIA BY PROPOSING TO ACQUIRE A MUCH SMALLER HMO AFFILIATED WITH CHILDRENS HOSPITAL OF SAN FRANCISCO BUT THAT PROPOSED ACQUISITION FELL APART AND IN RECENT MONTHS ANALYSTS HAVE SPECULATED THAT FHP WOULD TRY TO GROW BY TAKING OVER SOME OF ITS COMPETITORS TAKECARE SERVES 755000 MEMBERS IN CALIFORNIA AND THREE OTHER STATES THOUGH IT HAS A MUCH SMALLER MEDICARE OPERATION AND HAD BEEN SEEKING A PARTNER TO STRENGTHEN ITS COMPETITIVE POSITION IN THAT SEGMENT OF THE MARKET THE AGREEMENT IN PRINCIPLE WITH TAKECARE CALLS FOR PAYMENT OF 35 CASH 15 COMMON STOCK AND 50 CONVERTIBLE PREFERRED STOCK MR MASSIMINO FHP'S CHIEF OPERATING OFFICER SAID THE PRICE TAG AMOUNTING TO ABOUT 1000 FOR EACH ADDITIONAL MEMBER IS IN LINE WITH TRENDS IN THE RAPIDLY CONSOLIDATING HEALTHCARE INDUSTRY IN A STATEMENT FHP CHAIRMAN ROBERT GUMBINER SAID THE ACQUISITION IS EXPECTED TO HAVE A POSITIVE EFFECT ON THE COMPANY'S EARNINGS IN THE NEXT FISCAL YEAR ENDING JUNE 30 1995 IN ADDITION TO GAINING MORE THAN 360000 PATIENTS IN THREE STATES WHERE FHP DOESN'T CURRENTLY HAVE ANY MEMBERS THE COMPANY SAID IT ANTICIPATES ADMINISTRATIVE ECONOMIES AND OTHER COST REDUCTIONS ONCE THE ACQUISITION IS COMPLETED THE BOARDS OF BOTH CONCERNS HAVE APPROVED THE TRANSACTION AND A JOINT RELEASE BY THE FIRMS SAID THAT HOLDERS REPRESENTING MORE THAN 25 OF TAKECARE'S SHARES OUTSTANDING HAVE INDICATED THEIR SUPPORT BUT A TAKECARE SHAREHOLDER REPRESENTING ANOTHER 16 OF SHARES OUTSTANDING HAS INDICATED OPPOSITION ACCORDING TO THE RELEASE AS THE EIGHTH LARGEST HMO IN CALIFORNIA TAKECARE BEGAN THE MERGER DISCUSSIONS SEVERAL MONTHS AGO BECAUSE THAT SEEMED TO BE THE BEST WAY TO SOLIDIFY OUR MARKET POSITION IN THE STATE R JUDD JESSUP PRESIDENT SAID GIVEN FHP'S EXPERTISE AS THE NATION'S LARGEST MEDICARE RISK CONTRACTOR MR JESSUP SAID THE COMBINED COMPANY WOULD BE MORE COMPETITIVE IN PROVIDING SERVICES TO MEDICARE PATIENTS A DEFINITIVE PURCHASE AGREEMENT FOR BOTH COMPANIES IS EXPECTED TO BE SIGNED BY THE SUMMER PENDING REGULATORY APPROVALS AND OTHER FORMALITIES 9401110101 940111 ECONOMY SOME BIG MERGERS MAY BE JUSTIFIED IN CERTAIN CASES ANTITRUST OFFICIAL SAYS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ANNE BINGAMAN THE ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID SOME MERGERS THAT GENERALLY WOULD VIOLATE FEDERAL ANTITRUST GUIDELINES MAY BE ALLOWED IF THEY FOSTER INNOVATION IN REMARKS PREPARED FOR DELIVERY TO A SYMPOSIUM MARKING THE 60TH ANNIVERSARY OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION MS BINGAMAN SAID THAT IN A PARTICULAR CASE IT IS CONCEIVABLE THAT ECONOMIES OF SCALE OR SCOPE MAY JUSTIFY ALLOWING A MERGER THAT CREATES MARKET POWER BECAUSE THE MERGER IS DEMONSTRABLY NECESSARY TO SUSTAIN INCENTIVES FOR INNOVATION OR TO BRING THE BENEFITS OF SIGNIFICANT INNOVATION TO MARKET MORE QUICKLY BUT MS BINGAMAN WHO IS KNOWN FOR HER AGGRESSIVE ATTITUDE TOWARD ANTITRUST ENFORCEMENT POINTEDLY NOTED THAT SHE REJECTS AS A GENERAL PROPOSITION APPROVING TRANSACTIONS THAT CONTRAVENE NORMAL ANTITRUST STANDARDS SIMPLY BECAUSE THEY ARE IN HIGHTECHNOLOGY INDUSTRIES SHE POINTED TO THE DIVISION'S CHALLENGE OF THE PROPOSED 525 MILLION SALE BY GENERAL MOTORS CORP OF ITS ALLISON TRANSMISSION DIVISION TO ZF FRIEDRICHSHAFEN AG OF GERMANY GM DROPPED THE DEAL IN NOVEMBER AFTER MS BINGAMAN FILED A LAWSUIT ALLEGING THE TRANSACTION WOULD BLUNT INNOVATION IN AUTOMATIC TRANSMISSIONS FOR HEAVY TRUCKS AND BUSES CONSISTENT WITH OUR ALLEGATION IN THE GM/ZF COMPLAINT WE BELIEVE THAT CONSUMER WELFARE IS ENHANCED WHEN INNOVATIVE DIVERSITY AND COMPETITION IS PRESERVED SHE SAID MS BINGAMAN'S DECISION TO DISCUSS THE RELATIONSHIP BETWEEN ANTITRUST AND HIGH TECHNOLOGY BEFORE AN AUDIENCE THAT INCLUDED MANY OF HER PREDECESSORS AND OTHER ANTITRUST EXPERTS UNDERSCORED THE EVERINCREASING IMPORTANCE OF THE SUBJECT SHE DID NOT HOWEVER GIVE ANY INDICATION WHAT THE DIVISION MIGHT CONCLUDE ABOUT SPECIFIC ISSUES CURRENTLY BEFORE IT HER STAFF FOR EXAMPLE IS PROBING CHARGES THAT COMPUTER SOFTWARE CONCERN MICROSOFT CORP USES UNFAIR BUSINESS PRACTICES TO MAINTAIN ITS MARKET DOMINANCE ALSO BEING REVIEWED BY DEPARTMENT TRUSTBUSTERS IS THE PLANNED ACQUISITION OF TELECOMMUNICATIONS INC BY BELL ATLANTIC CORP AND THE PROPOSED PURCHASE OF MCCAW CELLULAR COMMUNICATIONS CO BY AMERICAN TELEPHONE & TELEGRAPH CO BOTH ACQUISITIONS COULD PLAY IMPORTANT ROLES IN DEVELOPING A NATIONAL INFORMATION SUPERHIGHWAY WHICH IS HIGHLY TOUTED BY VICE PRESIDENT GORE 9401110100 940111 ADMINISTRATION SETS SUPER CAR' PROJECTS TOTALING 20 MILLION DETROIT THE CLINTON ADMINISTRATION ANNOUNCED SEVEN JOINTRESEARCH PROJECTS WITH THE BIG THREE AUTO MAKERS TOTALING 20 MILLION OVER THREE YEARS IN AN EFFORT TO SHED MORE LIGHT ON ITS HERALDED SUPER CAR PROGRAM THE FUNDING ALTHOUGH SMALL BY AUTO INDUSTRY STANDARDS REFLECTS THE ADMINISTRATION'S WILLINGNESS TO BEAR PART OF THE US AUTO INDUSTRY'S COSTS ASSOCIATED WITH EXPLORING NEW TECHNOLOGIES THE GOVERNMENT'S NATIONAL LABS AND RESEARCH CONSORTIA FORMED BY THE BIG THREE'S JOINTRESEARCH ARM USCAR WILL SHARE THE FUNDS THE WORK IS EXPECTED TO LEAD TO THE DEVELOPMENT OF A FAMILY SEDAN THAT CAN ACHIEVE THREE TIMES THE FUEL EFFICIENCY OF TODAY'S AVERAGE VEHICLE 9401110099 940111 FOREIGN EXCHANGE DOLLAR BOUNCES BACK AGAINST MARK AND YEN AS STERLING CONTINUES TO GAIN BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR BOUNCED BACK AGAINST THE MARK AND YEN AS INVESTORS DECIDED THAT A SELLOFF ON FRIDAY HAD LEFT THE US CURRENCY AT ATTRACTIVE BUYING LEVELS STERLING CONTINUED TO GAIN AGAINST THE MARK MEANWHILE AFTER A NEW BATCH OF UK ECONOMIC STATISTICS CONFIRMED THAT THE BRITISH ECONOMIC PROSPECTS REMAIN AMONG THE BEST IN EUROPE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17346 MARKS UP FROM 17273 MARKS FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11225 YEN UP FROM 11190 YEN STERLING WAS TRADING AT 14930 A TOUCH ABOVE 14928 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11237 YEN AND AT 17341 MARKS ON FRIDAY THE DOLLAR FELL SHARPLY AGAINST MOST MAJOR CURRENCIES AFTER SOME CLOSELY WATCHED DATA ON THE US JOB MARKET IN DECEMBER DISAPPOINTED MANY OF THE DOLLAR BULLS WHO HAD BOOSTED THE CURRENCY IN THE RUNUP TO THE REPORT BUT DOLLAR BULLS WERE RELIEVED THAT FRIDAY'S LOSSES DIDN'T CARRY OVER INTO YESTERDAY'S EARLY ACTION HELPING THE DOLLAR TO REMAIN ABOVE KEY TECHNICAL LEVELS AT 17240 MARKS AND 11150 YEN THOSE LEVELS HELD UP WELL IN THE ASIAN AND EUROPEAN MARKETS ALLOWING NORTH AMERICAN TRADERS TO BEGIN THEIR DAY ON A POSITIVE NOTE SAID STEPHEN FLANAGAN A VICE PRESIDENT AT PAINEWEBBER INC IN NEW YORK AND FROM THOSE LEVELS THE DOLLAR MOVED STEADILY HIGHER AS INVESTORS BETTING ON A DOLLAR RALLY LATER IN THE YEAR SENSED A BUYING OPPORTUNITY AND SWOOPED IN TO LOAD UP ON RELATIVELY CHEAP DOLLARS FRIDAY'S DECLINE DIDN'T BREAK THE BACK OF THE BULL MOVE SAID DAVID DURST A VICE PRESIDENT AT BEAR STEARNS & CO IN NEW YORK THE PATH OF LEAST RESISTANCE IS STILL HIGHER STERLING MEANWHILE HELD STEADY AGAINST THE DOLLAR BUT PULLED AHEAD AGAINST THE MARK AFTER A NEW ROUND OF DATA CONFIRMED THE MARKET'S VIEW THAT THE BRITISH ECONOMY IS LIKELY TO OUTPERFORM MOST OTHERS IN EUROPE LED BY A SHARP RISE IN EXPORTS BRITAIN'S MERCHANDISE TRADE GAP NARROWED TO A SEASONALLY ADJUSTED 578 MILLION 8632 MILLION IN OCTOBER NET CONSUMER LENDING MEANWHILE CONTINUED AT A STRONG PACE TOTALING 290 MILLION IN NOVEMBER A BIT BELOW 312 MILLION IN OCTOBER TRADERS ALSO NOTED THAT THE UK DATA CONTRASTED SHARPLY WITH A REPORT SHOWING THAT WESTERN GERMANY'S GROSS DOMESTIC PRODUCT SHRUNK BY 19 IN 1993 THE STEEPEST DECLINE THERE SINCE WORLD WAR II LATE IN NEW YORK STERLING TRADED AT 25896 MARKS UP FROM 25792 MARKS FRIDAY ELSEWHERE THE MARK GAINED SOME GROUND AGAINST THE LIRA WHICH CONTINUED TO BE DRAGGED BY WORRIES OVER THE ITALIAN POLITICAL SCENE TRADERS NOTED THAT THE POLITICAL JITTERS HAVE INCREASED AHEAD OF WEDNESDAY'S VOTE OF CONFIDENCE IN PRIME MINISTER CARLO CIAMPI AS SOME INVESTORS FEAR THAT THE DOWNFALL OF THE GOVERNMENT COULD LEAVE ECONOMIC POLICY HANGING AND ALSO WEIGHING ON THE CURRENCY THEY ADDED IS THE INTERROGATION OF SOME RECENTLY EXTRADITED OFFICIALS WHO HAVE IMPLICATED PRESIDENT OSCAR LUIGI SCALFARO IN THE ONGOING CORRUPTION SCANDAL 9401110098 940111 INVENTOR WILL GIVE A 500000 PRIZE FOR BEST INVENTION HOLDER OF 500 PATENTS HOPES CONTEST PART OF MIT PLAN WILL INCREASE INNOVATION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JEROME H LEMELSON PERHAPS AMERICA'S MOST PROLIFIC LIVING INVENTOR BELIEVES THAT THE COUNTRY IS FACING AN INNOVATION CRISIS AND IS PUTTING UP HALF A MILLION DOLLARS IN PRIZE MONEY TO HELP RECTIFY IT MR LEMELSON WHO HOLDS MORE THAN 500 PATENTS HAS ESTABLISHED THE PRIZE AS PART OF A 65 MILLION PROGRAM HE HAS FUNDED AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY DESIGNED TO SINGLE OUT THE MOST IMPORTANT AMERICAN INVENTION OVER THE PAST SEVERAL YEARS THE PRIZE IS OPEN TO US CITIZENS AND WILL BE CONFERRED FOR THE FIRST TIME IN EARLY 1995 THE PROGRAM SEEKS TO RESTORE STATUS TO INVENTING TELEVISION HAS DRIVEN OUT THE INVENTOR AS A FIGURE OF POPULAR MYTHOLOGY SAID LESTER C THUROW MIT ECONOMIST WHO WILL ADMINISTER THE PROGRAM INVENTING SHOULD SEEM FUN PROF THUROW WHO HAS BEEN OUTSPOKEN ABOUT THE NEED TO RESTORE AMERICA'S PLACE AS A TECHNOLOGY LEADER NOTED THAT ECONOMISTS CAN NO LONGER TAKE STOCK OF A NATION'S STRENGTH SIMPLY BY MEASURING ITS NATURAL RESOURCES ALL THAT ANALYSIS IS IRRELEVANT TODAY HE SAID NOW YOU NEED SKILLED AND INVENTIVE PEOPLE BUT GETTING THE NEXT GENERATION AMERICAN STUDENTS EXCITED ABOUT THEIR ROLE IN A HIGHTECH FUTURE MAY BE EASIER SAID THAN DONE MIT SAID A NEW SURVEY REVEALS THAT NEARLY THREEFOURTHS OF HIGH SCHOOL STUDENTS WOULD RATHER BE IN SHOW BUSINESS THAN BE AN INVENTOR WHILE MORE THAN 60 PREFERRED A CAREER IN SPORTS IT'S VERY DISTURBING TO ME TO LEARN THAT AMERICAN STUDENTS TODAY THINK THE PATH TO A LUCRATIVE FUTURE IS THROUGH ENTERTAINMENT OR SPORTS ESPECIALLY WHEN 70 OF HIGH SCHOOL STUDENTS FEEL THAT AMERICA IS LOSING ITS COMPETITIVE EDGE IN INVENTION AND INNOVATION MR LEMELSON 70 YEARS OLD SAID MR LEMELSON WHO LIVES IN RENO NEV WAS DRAWN TO INVENTING AFTER SPENDING HOURS TINKERING WITH MODEL AIRPLANES AS A CHILD BUT HIS INTERESTS SOON GREW MORE ECLECTIC HIS 500 PATENTS INCLUDE THE FIRST VELCRO DARTBOARD GAME AS WELL AS INDUSTRIAL ROBOTS BAR CODE SCANNING SYSTEMS VIDEOCASSETTE RECORDERS FAX MACHINES AND THE MAGNETIC TAPE DRIVE USED IN SONY CORP'S WALKMAN PRODUCT MR LEMELSON CONSIDERS HIS PROUDEST ACCOMPLISHMENT TO BE A SERIES OF PATENTS FOR MACHINE VISION TECHNOLOGY THAT ENABLES A VIEWER TO SCAN THE TINY ARCHITECTURE OF MICROCHIPS AS WELL AS LARGER PARTS SUCH AS THOSE USED IN AUTOMOBILES WE'VE JUST SCRATCHED THE SURFACE OF APPLICATIONS HE ASSERTED ACCORDING TO MIT MR LEMELSON HOLDS THE FOURTHHIGHEST NUMBER OF PATENTS IN US HISTORY FOLLOWING THOMAS EDISON ELIHU THOMSON A FORMER MIT PRESIDENT AND EDWIN LAND THE INVENTOR OF THE POLARIZING LENS USED IN POLAROID CAMERAS AND FOUNDER OF POLAROID CO I LOOK FOR PROBLEMS TO SOLVE MR LEMELSON SAID I LOOK AT A NEW TECHNOLOGY AND ASK HOW CAN IT BE IMPROVED DESPITE THE BREADTH OF HIS INTERESTS AS AN INVENTOR MR LEMELSON SAID HE WILL NOW CONCENTRATE ON DREAMING UP NEW MEDICAL DEVICES INCLUDING THOSE FOR CANCER DETECTION HE THEN HOPES TO INTEREST LARGE DRUG COMPANIES AND OTHER MANUFACTURERS TO LICENSE THE EVENTUAL DESIGNS THE 65 MILLION LEMELSONMIT PROGRAM INCLUDES A 2 MILLION ENDOWMENT FOR A PROFESSORSHIP 10 RESEARCH FELLOWSHIPS AND EIGHT UNDERGRADUATE AWARDS PROF THUROW WAS NAMED AS THE FIRST PROFESSOR TO HOLD THE PROFESSORSHIP 9401110097 940111 ARCO WILL TAKE 450 MILLION CHARGE TIED TO OVERHAUL OF DOMESTIC OPERATIONS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO SAID IT PLANS TO TAKE A LARGERTHANEXPECTED 450 MILLION CHARGE RELATED TO A PREVIOUSLY ANNOUNCED REORGANIZATION OF ITS DOMESTIC OIL AND GAS OPERATIONS THE OVERALL CHARGE IN THE FOURTH QUARTER COUPLED WITH THE COMPANY'S DISCLOSURE THAT IT INCLUDES A MUCH DEEPER PERSONNEL CUT THAN PROJECTED BARELY THREE MONTHS AGO REFLECT THE ESCALATING PRESSURE FOR COSTCUTTING AFFLICTING ALL OF BIG OIL ARCO SAID ABOUT 60 MILLION OF THE CHARGE IS ASSOCIATED WITH THE DISMISSAL OF ABOUT 1300 EMPLOYEES BUT THE COMPANY DECLINED TO BREAK OUT THE REST OF THE WRITEDOWN AT THE END OF OCTOBER WHEN ARCO ANNOUNCED THE RESTRUCTURING WITHOUT INDICATING THE EXTENT OF ITS IMPACT ON FOURTHQUARTER RESULTS THE COMPANY SAID THAT BETWEEN 900 AND 1000 EMPLOYEES WOULD BE LET GO IN THE FOURTH QUARTER OF 1992 ARCO EARNED 372 MILLION OR 230 A SHARE WHILE ACKNOWLEDGING THAT THE FIGURE ANNOUNCED YESTERDAY EXCEEDS SOME OUTSIDE PROJECTIONS EUGENE NOWAK A SENIOR ANALYST AT DEAN WITTER REYNOLDS INC SAID THAT CHARGES OF THIS MAGNITUDE GO WITH THE TERRITORY IN MAJOR RESTRUCTURING MOVES AS PREVIOUSLY REPORTED THE COMPANY PLANS TO CURTAIL OIL EXPLORATION IN THE LOWER 48 STATES AND REFOCUS EXPLORATION FOR NATURAL GAS A BIG CHUNK OF THE CHARGE IS EXPECTED TO INVOLVE THE PROPOSED SALE OF THE COMPANY'S 12YEAROLD LANDMARK OFFICE TOWER IN DOWNTOWN DALLAS A MOVE THAT HAS PROVOKED CONTROVERSY AMONG THE CITY'S REAL ESTATE AND OTHER BUSINESS INTERESTS ARCO IS NEGOTIATING TO SELL THE 49STORY BUILDING WHICH COST AROUND 190 MILLION TO BUILD AND WAS DESIGNED BY THE INTERNATIONALLY ACCLAIMED ARCHITECT IM PEI TO PARTIES ASSOCIATED WITH TEXAS UTILITIES CO AN AGENT FOR THE UTILITY DECLINED TO DISCUSS THE PENDING OFFER BUT OTHER PEOPLE FAMILIAR WITH THE TALKS SAID THE PRICE UNDER DISCUSSION IS APPROXIMATELY 30 MILLION OTHER PROSPECTIVE PURCHASERS HOWEVER HAVE COMPLAINED THAT ARCO HAS SPURNED HIGHER OFFERS THEY SUBMITTED FOR THE 13MILLIONSQUAREFOOT BUILDING THESE CRITICS WHO WANT TO DERAIL THE TALKS BETWEEN ARCO AND A TEXAS UTILITIES UNIT ALLEGED THAT THE UTILITY IS TRYING TO NEGOTIATE A CUTRATE PRICE FOR THE PROPERTY BECAUSE IT IS A MAJOR ARCO CUSTOMER WAYNE SWEARINGEN AN AGENT WHO SAID HE IS CERTAIN HE SUBMITTED A HIGHER BID TO ARCO ON BEHALF OF AN INTERNATIONAL GROUP LAST YEAR COMPLAINED IN AN INTERVIEW THAT HE NEVER RECEIVED ANY RESPONSE IN LOS ANGELES AN ARCO SPOKESMAN DECLINED TO COMMENT ON THE NEGOTIATIONS WITHOUT GOING INTO DETAILS CARL EWERT A DALLAS REALESTATE AGENT WORKING FOR THE UTILITY CONFIRMED THAT ARCO IS NOT ENTERTAINING ANY OTHER OFFERS FOR THE BUILDING UNTIL THE UTILITY MAKES UP ITS MIND ABOUT CONSOLIDATING ITS OFFICES IN THE DALLAS AREA ARCO SHARES CLOSED YESTERDAY AT 107625 OFF 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401110096 940111 DETROIT DIESEL GETS CREDIT LINE DETROIT DETROIT DIESEL CORP MAKER OF HEAVYDUTY DIESEL ENGINES AND ENGINE PARTS SAID IT HAS ARRANGED A 250 MILLION FIVEYEAR UNSECURED SYNDICATED BANK CREDIT FACILITY THAT REPLACES A 170 MILLION SECURED CREDIT LINE CHEMICAL BANK IS ACTING AS AGENT FOR THE PARTICIPATING BANKS PROCEEDS WILL BE USED TO CONSOLIDATE THE CURRENT BANK DEBT OF DETROIT DIESEL'S SUBSIDIARIES AND FOR GENERAL CORPORATE PURPOSES PENSKE CORP OWNS ABOUT 58 OF DETROIT DIESEL WHILE GENERAL MOTORS CORP OWNS ABOUT 15 9401110095 940111 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 ASSOCIATES CORP OF NORTH AMERICA 300 MILLION OF NOTES DUE NOV 30 1996 PRICED AS 4625S AT 99954 TO YIELD 4644 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 27 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ASSOCIATES IS A UNIT OF FORD MOTOR CO BAYERISCHE LANDESBANK NEW YORK 100 MILLION OF MEDIUMTERM NOTES DUE JAN 18 1995 PRICED AT PAR TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE THE TREASURYBILL EQUIVALENT RATED TRIPLEA BY MOODY'S AND TRIPLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CHRYSLER FINANCIAL CORP 250 MILLION OF NOTES DUE JAN 15 1999 PRICED AS 5625S AT 99707 TO YIELD 5693 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO CHRYSLER FINANCIAL IS A UNIT OF CHRYSLER CORP FEDERAL FARM CREDIT BANKS FUNDING CORP 100 MILLION OF MEDIUMTERM NOTES NOTES DUE JAN 18 1996 PRICED INITIALLY AT PAR TO YIELD 4095 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 125 BILLION OF MODIFIABLE AND COMBINABLE SECURITIES SERIES 162 BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 796 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS UNDERWRITERS INCLUDE NOMURA SECURITIES INTERNATIONAL INC SALOMON BROTHERS INC PRUDENTIAL SECURITIES INC JP MORGAN SECURITIES INC GOLDMAN SACHS & CO AND LEHMAN BROTHERS INC FIRST UNION CORP 150 MILLION OF SUBORDINATED NOTES DUE JAN 15 2009 PRICED AS 6375S AT 98991 TO YIELD 6481 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FFLC BANCORP INC 28 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH BAIRD/MARK CAPITAL GROUP INC GT GLOBAL DEVELOPING MARKETS FUND INC INITIAL OFFERING OF 32 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC HARRIS COUNTY TEXAS 5953 MILLION OF SERIES 1994 TOLLROAD SENIORLIEN REVENUE REFUNDING BONDS PRICED BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 4 IN 1998 TO 553 IN 2021 BONDS DUE IN 19982009 AND 2013 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P BONDS DUE IN 2016 AND 2021 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P KANSAS DEPARTMENT OF TRANSPORTATION 125 MILLION OF SERIES 1994 HIGHWAY REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 39 IN 1999 TO 517 IN 2013 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S S&P AND FITCH INVESTORS SERVICE INC BANCO BAMERINDUS DO BRASIL SA BRAZIL 100 MILLION MARKS OF 925 EUROBONDS DUE JAN 27 1999 AT ISSUE PRICE 1013 VIA BERLINER HANDELS UND FRANKFURTER BANK RECOMMENDED REOFFER 10005 TO YIELD 924 FEES 25 LESS 02 FOR LEAD MANAGER BAYERISCHE HYPOTHEKENUND WECHSEL BANK AG GERMANY 100 MILLION OF 6 EUROBONDS DUE OCT 28 1999 AT ISSUE PRICE 10125 VIA HAMBROS BANK LTD REOFFERED AT 99675 TO YIELD 606 A SPREAD OF 24 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 1875 BAYERISCHE VEREINSBANK AG GERMANY 250 BILLION ITALIAN LIRE OF 79 EUROBONDS DUE FEB 11 2004 AT ISSUE PRICE 1017 VIA CREDITO ITALIANO BONDS YIELD 795 AFTER FEES OF TWO BT SECURITIES CORP DELAWARE US PARENT 200 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE FEB 3 1997 AT ISSUE AND REOFFER PRICE 998125 VIA KIDDER PEABODY SECURITIES CO PAYABLE QUARTERLY AT 025 POINT ABOVE THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 025 DEUTSCHE PFANDBRIEFUND HYPOTHEKENBANK AG GERMANY TWO BILLION MARKS OF FLOATINGRATE NOTES DUE FEB 23 2003 VIA DEUTSCHE GENOSSENSCHAFTSBANK FIRST ONE BILLION MARK SERIES ISSUED AT 9988 PAYABLE QUARTERLY AT THREEMONTH MARK LIBOR SECOND ONE BILLION MARK SERIES ISSUED AT 9981 PAYABLE SEMIANNUALLY AT SIXMONTH MARK LIBOR FEES 02 LESS 002 FOR LEAD MANAGER EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SUPRANATIONAL 20 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 25 1999 AT ISSUE PRICE 1057 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT 05 POINT ABOVE SIXMONTH YEN LIBOR FEES UNDISCLOSED GMAC AUSTRALIA FINANCE LTD US PARENT 60 MILLION AUSTRALIAN DOLLARS OF 6375 EUROBONDS DUE FEB 24 1997 AT ISSUE PRICE 101225 VIA HAMBROS BANK LTD BONDS YIELD 643 AT 9985 COMANAGERS' BREAKEVEN PRICE GUARANTOR GENERAL MOTORS ACCEPTANCE CORP FEES 15 LESS 0125 FOR LEAD MANAGER HALIFAX BUILDING SOCIETY UK 500 MILLION OF 65 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 100835 VIA DEUTSCHE BANK AG LONDON AND UBS LTD REOFFERED AT 99185 TO YIELD 661 A SPREAD OF 32 BASIS POINTS ABOVE COMPARABLE UK GILT FEES TWO HONG KONG LAND HOLDINGS LTD HONG KONG 360 MILLION OF 4 CONVERTIBLE EUROBONDS DUE FEB 23 2001 AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT CONVERSION PRICE 3105 HONG KONG DOLLARS A 15 PREMIUM OVER MONDAY'S CLOSING SHARE PRICE CONVERTIBLE FROM APRIL 22 TO FEB 16 2001 FOREIGNEXCHANGE RATE HK7724 PER US DOLLAR BONDS CALLABLE FROM APRIL 22 SUBJECT TO SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FEES UNDISCLOSED HYDROQUEBEC CANADA ONE BILLION CANADIAN DOLLARS OF 7 GLOBAL BONDS DUE JUNE 1 2004 AT ISSUE AND REOFFER PRICE 98338 VIA MERRILL LYNCH INTERNATIONAL LTD AND SCOTIA MCLEOD INC BONDS YIELD MARGIN OF 71 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR QUEBEC FEES 035 PAYABLE SEMIANNUALLY LKB FINANCE BV GERMAN PARENT 300 MILLION DUTCH GUILDERS OF 575 EUROBONDS DUE FEB 10 2004 AT ISSUE PRICE 10035 VIA ABN AMRO BANK NV REOFFERED AT 996 TO YIELD 58 A MARGIN OF 20 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES ONE MORGAN STANLEY GROUP INC US 250 MILLION OF FLOATINGRATE EURONOTES DUE JANUARY 1997 AT ISSUE AND REOFFER PRICE 9978 VIA MORGAN STANLEY INTERNATIONAL PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 0125 POINT FEES 025 OESTERREICHISCHE KONTROLLBANK AG AUSTRIA 150 MILLION SWISS FRANCS OF 375 PUBLIC BONDS DUE FEB 15 1999 PRICED AT 102 VIA BANK VON ERNST & CIE FEES 1625 PRUDENTIAL FUNDING CORP US PARENT 150 MILLION SWISS FRANCS OF 3875 PRIVATELY PLACED NOTES DUE JAN 26 1998 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 1375 SUDWESTDEUTSCHE LANDESBANK CAPITAL MARKETS PLC GERMAN PARENT 250 MILLION MARKS OF 5 EUROBONDS DUE FEB 8 1999 VIA GOLDMAN SACHS & CO RECOMMENDED REOFFER 99517 TO YIELD 511 A SPREAD OF 0125 POINT ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR SUDWESTDEUTSCHE LANDESBANK FEES TWO 9401110093 940111 DEMATTEIS SIGNS CHINA PACT UNIONDALE NY DEMATTEIS ORGANIZATIONS SAID IT SIGNED AN AGREEMENT WITH TWO CHINESE CONCERNS TO JOINTLY DEVELOP MAJOR OFFICE PROPERTIES IN CHINA THE LONG ISLAND NYBASED CONSTRUCTION AND DEVELOPMENT COMPANY SAID THE INITIAL PROJECTS WILL INCLUDE TWOMILLIONSQUAREFEET MIXEDUSE DEVELOPMENTS IN BOTH SHENZHEN AND SHANGHAI TOTAL BUILDING COSTS WILL EXCEED 500 MILLION DEMATTEIS WILL BE WORKING WITH CHINA NORTH INDUSTRIES SHENZHEN CORP AND SHENZHEN CHINA STATE CONSTRUCTION INDUSTRIAL CO 9401110092 940111 TECHNOLOGY & MEDICINE HEALTHTRUST PLANS ACQUISITION OF EPIC FOR 277 MILLION AND DEBT ASSUMPTION BY GLENN RUFFENACH AND ROBERT TOMSHO STAFF REPORTERS OF THE WALL STREET JOURNAL HEALTHTRUST INC JUMPING ON THE ACQUISITION BANDWAGON IN THE HOSPITAL INDUSTRY SAID IT WILL ACQUIRE CLOSELY HELD EPIC HOLDINGS INC FOR 277 MILLION AND THE ASSUMPTION OF 727 MILLION IN DEBT THE TRANSACTION WILL GIVE HEALTHTRUST NASHVILLE TENN A TOTAL OF 115 HOSPITALS UP FROM 81 CURRENTLY IN 22 STATES MOREOVER IT WILL PROVIDE HEALTHTRUST WITH A NUMBER OF ANCILLARY SERVICES INCLUDING HOME CARE REHABILITATION AND PHYSICAL THERAPY THAT THE COMPANY LACKS AND WHICH ARE INCREASINGLY CRITICAL TO HOSPITALS' FORTUNES THE BREADTH OF YOUR OPERATIONS NOT JUST THE SIZE IS WHAT'S IMPORTANT TODAY SAID MARGO VIGNOLA A HEALTHCARE ANALYST AT SALOMON BROTHERS INC WITH HOSPITAL COMPANIES LOOKING FOR WAYS TO DEVELOP NETWORKS OF CLINICS PHYSICIANS AND SERVICES SHE ADDED THIS DEAL GIVES HEALTHTRUST FODDER FOR GROWTH INDEED WHILE HEALTHTRUST HAS MADE SELECTIVE ACQUISITIONS IN THE PAST YEAR BUYING EIGHT HOSPITALS IN THREE STATES ITS RIVALS HAVE BEEN GOBBLING UP LARGE GROUPS OF FACILITIES YESTERDAY HEALTHTRUST'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE R CLAYTON MCWHORTER SAID HE FIRST APPROACHED DALLASBASED EPIC IN SEPTEMBER ADDING THAT THE TRANSACTION WASN'T PROMPTED BY COMPETITORS' MOVES WE HAD LOOKED AT A NUMBER OF OPPORTUNITIES MR MCWHORTER SAID AND FELT EPIC MADE A GOOD MATCH BECAUSE OF THEIR ASSET MIX THAT MIX REFLECTS EPIC'S LARGE DEBT AND ITS DIFFICULTIES IN PURSUING ITS OWN ACQUISITIONS INSTEAD THE COMPANY HAS CONCENTRATED ON EXPANDING INTO OUTPATIENT SERVICES ITS HOME HEALTHCARE UNIT INCREASED ITS NUMBER OF PATIENT VISITS TO 14 MILLION IN 1993 FROM ABOUT 67000 IN 1990 OTHER EPIC UNITS PROVIDE REHABILITATION SKILLEDNURSING AND GERIATRIC SERVICES TO OTHER HOSPITALS WHILE MANY INDUSTRY OBSERVERS APPLAUD THE HEALTHTRUSTEPIC MARRIAGE MOST NOTE THAT HEALTHTRUST HAS ITS WORK CUT OUT THE TWO COMPANIES HAVE REMARKABLY SIMILAR ROOTS BOTH WERE SPUN OFF FROM LARGER HOSPITAL COMPANIES IN THE LATE 1980S AS EMPLOYEEOWNED OPERATIONS AND BOTH CATER PRIMARILY TO RURAL MARKETS IN THE SOUTH AND WEST HEALTHTRUST THOUGH WAS ABLE TO DRAW ON HCAHOSPITAL CORP OF AMERICA ITS ORIGINAL PARENT TO FILL KEY MANAGEMENT SLOTS AND FOR LOGISTICAL SUPPORT ITS EARNINGS AND SHARE PRICE HAVE BENEFITED ACCORDINGLY EPIC BY CONTRAST WAS ALL BUT ORPHANED BY AMERICAN MEDICAL HOLDINGS INC AND HAS BEEN WRESTLING WITH A SERIES OF ANNUAL LOSSES HEALTHTRUST'S MR MCWHORTER SAID THE TWO COMPANIES SHOULD BE ABLE TO REALIZE SYNERGIES OF ABOUT 50 MILLION IN THE FISCAL YEAR ENDING AUG 31 1995 THROUGH SAVINGS IN LABOR COSTS AND BADDEBT COSTS WHILE THE ACQUISITION WHICH IS EXPECTED TO BE COMPLETED IN APRIL OR MAY WILL LIKELY HAVE NO EFFECT ON PROFIT THIS FISCAL YEAR EARNINGS THE FOLLOWING YEAR COULD RECEIVE A BOOST OF AS MUCH AS 12 CENTS A SHARE THE COMPANY SAID MEANWHILE THE HEALTHTRUSTEPIC TRANSACTION COULD FUEL THE ACQUISITION PLANS OF DALLASBASED AMERICAN MEDICAL WHICH HOLDS A 26 STAKE IN EPIC AMERICAN MEDICAL WHICH HAS BEEN SEEKING TO EXPAND ITS 35HOSPITAL CHAIN ESTIMATED THAT AFTER TAXES IT WOULD WALK AWAY FROM THE EPIC DEAL WITH 43 MILLION IN CASH A SPOKESWOMAN SAID THE PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING INCREASING OUR FLEXIBILITY FOR PURSUING EXTERNAL AND INTERNAL GROWTH IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HEALTHTRUST CLOSED AT 26 A SHARE UP 125 CENTS 9401110091 940111 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 29 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9401110090 940111 LETTERS TO THE EDITOR DOES ANYONE KNOW HOW TO STOP CRIME PAUL JOHNSON'S JAN 4 EDITORIALPAGE ARTICLE CRIME THE PEOPLE WANT REVENGE DESCRIBING THE GENUINE DIFFICULTIES OF MODERN DEMOCRACIES IN CONTROLLING CRIME COMES TO AN UNSATISFACTORY CONCLUSION LAPSING INTO DEMAGOGUERY ABOUT THE MANIFEST EVILS OF LIBERALISM MR JOHNSON NOTES THAT A MAJORITY OF CITIZENS MAY WANT MORE SEVERE AND PERHAPS EVEN VINDICTIVE PUNISHMENTS FOR CRIMINALS DOES HE BELIEVE LEGISLATURES SHOULD ENACT PENAL LAWS THAT REFLECT THIS VINDICTIVENESS IS THIS RETALIATORY IMPULSE SYMPTOMATIC OF A PROBLEM THAT SOME SPECIFIC CONSERVATIVE MEASURES COULD ALLEVIATE MR JOHNSON NEVER MAKES THE ANSWER CLEAR STRINGENT PUNISHMENTS RAISE PRACTICAL QUESTIONS REGARDING PRISON OVERCROWDING AND THE CULTURE OF CRIME EXISTING IN THOSE PRISONS THAT CANNOT BE RESOLVED MERELY BY IDENTIFYING AND REJECTING THE LIBERAL POINT OF VIEW SURELY MR JOHNSON IS NOT SERIOUSLY PROMOTING A RETURN TO A TIME WHEN LARGE NUMBERS OF CRIMES WERE PUNISHABLE BY PUBLIC HANGING IT HAS NEVER BEEN POSSIBLE TO RESOLVE PROBLEMS MERELY BY LABELING THEM AS PRODUCTS OF LIBERAL OR CONSERVATIVE PHILOSOPHY IN AMERICA IN THE '90S ONE MAY NOT EVEN ASSUME THAT THE CONSERVATIVE POSITION IS OBVIOUS IT MAY BE SATISFYING FOR MR JOHNSON TO RAIL AGAINST LIBERALISM AS THE SOURCE OF SOCIETY'S PROBLEMS UNFORTUNATELY IT IS NEITHER ILLUMINATING NOR HELPFUL TO DO SO MR JOHNSON IS RIGHT ON THE MARK IT IS FAIR TO SAY THAT THE AVERAGE PERSON HAS NO USE FOR THE ENDLESS APPEALS AND PSYCHOLOGICAL EVALUATIONS THAT SEEM TO CHARACTERIZE OUR JUSTICE SYSTEM THEY ARE COSTLY AND IN NO WAY HAS THIS APPROACH TO CRIMINAL JUSTICE MADE OUR STREETS SAFER WHAT THE AMERICAN PEOPLE WANT IS ACTION AND IN MANY CASES REVENGE IN REALITY HOWEVER IT WILL BE DIFFICULT TO REFORM OUR CRIMINAL JUSTICE SYSTEM WITHOUT TAKING A HARD LOOK AT OUR LEGAL SYSTEM THIS IS THE ONE INDUSTRY IN AMERICA THAT PROFITS FROM ALL THE ENDLESS APPEALS AND WORD PLAY THE SOPHISTS ARE CARRYING THE DAY AND UNTIL WE CONFRONT THIS REALITY CRIME WILL CONTINUE TO PAY THERE WERE MORE THAN 200000 MURDERS IN THE US DURING THE PAST 10 YEARS AND NEARLY 100000 PEOPLE WERE CONVICTED OF MURDER LIBERALS BLAME GUNS CONSERVATIVES BLAME DRUGS AND EVERYBODY BLAMES TELEVISION BUT NOBODY SEEMS TO BLAME THE MURDERERS I DO WANT REVENGE WE NEED A MANDATORY AND SPEEDILY APPLIED DEATH PENALTY FOR MURDER WITH NO EXCULPATION FOR YOUTH INSANITY ALL MURDER IS INSANE PARENTAL OR SPOUSAL ABUSE OR OVERCONSUMPTION OF TWINKIES LIBERALS CLAIM THAT THE DEATH PENALTY IS NOT A DETERRENT TO CRIME HOW CAN THEY KNOW NOT ONE STATE HAS EXECUTED EVEN 1 OF CONVICTED MURDERERS IN ANY YEAR WHY NOT EXECUTE EVERY SINGLE PERSON CONVICTED OF MURDER DURING THE NEXT 10 YEARS AND FIND OUT WHETHER OR NOT IT WORKS I'M JUST A BEAN COUNTER NOT A CRIMINOLOGIST BUT I SUSPECT THE DETERRENT EFFECT OF 100000 EXECUTIONS WOULD BE CONSIDERABLE 9401110089 940111 BUSINESS WORLD THE CLOGGED PIPELINE OF CRAFT TRAINING BY TIM W FERGUSON IF THE WHITE HOUSE WANTS TO EMPHASIZE WORKER TRAINING AS PART OF ITS NEW INVESTMENT BUDGET IT OUGHT TO GRAPPLE WITH A POLITICAL PROBLEM THAT HAS NOTHING TO DO WITH REVENUE TRADEUNION OPPOSITION BUT THIS IT APPARENTLY WILL NOT DO IN SEVERAL STATES JOBS AWAIT THOSE TAUGHT TO BE ELECTRICIANS HEATING AND AIRCONDITIONING INSTALLERS WELDERS AND PLUMBERS THAT'S THE EARLY EVIDENCE FROM PARALLEL APPRENTICESHIP PROGRAMS OFFERED OUTSIDE THE UNIONS AND OVER THEIR OBJECTIONS IN PLACES WHERE ORGANIZED LABOR PREVIOUSLY CONTROLLED ENTRY TO FORMAL CONSTRUCTION TRAINING THESE LOCATIONS INCLUDE CALIFORNIA AND WASHINGTON AS WELL AS MAJOR MIDWESTERN AND EASTERN STATES HOW MUCH OF A DIFFERENCE WOULD EXPANSION OF THESE EFFORTS MAKE A BIG ONE SAYS HERBERT NORTHRUP AN EMERITUS PROFESSOR AT THE WHARTON SCHOOL HE ESTIMATES THAT IF THESE TRADES COULD TRULY BE OPENED UP NOT JUST TO FULL APPRENTICES BUT TO HELPERS CURRENTLY STYMIED BY UNION RULES 500000 TO 750000 PEOPLE MANY OF THEM CURRENTLY UNEMPLOYABLE ABOVE THE MINIMUM WAGE COULD BE ADDED TO THE 38 MILLION NOW IN CONSTRUCTION CRAFTS DAVID TURNER A FEDERAL TRAINING OFFICIAL IN SAN FRANCISCO IS MORE GUARDED BUT SAYS NONUNION CONTRACTORS COULD BE ABLE TO DOUBLE THE APPROXIMATELY 180000 APPRENTICES IN THE INDUSTRY NOW THE ISSUE IS HOT IN SOME OF THE 27 STATES THAT REGULATE APPRENTICES THERE THE UNIONIZED SECTOR EVEN THOUGH ITS CONSTRUCTIONMARKET SHARE HAS DWINDLED TO PERHAPS 25 HAS DOMINATED THE LICENSING PROCESS HOWEVER A SERIES OF COURT INTERPRETATIONS OF THE FEDERAL LAW KNOWN AS ERISA PRIMARILY CONCERNED WITH PENSIONS ARE FORCING THOSE STATES TO OPEN UP BUT JUST AS RESULTS FROM THE NEW PROGRAMS BEGIN TO SHOW WITH PERHAPS 1000 ALREADY TAKING PART IN CALIFORNIA A POLITICAL REACTION HAS SET IN REP HOWARD BERMAN A LOS ANGELES DEMOCRAT AND ONETIME LABOR LAWYER HAS GUIDED A MEASURE THROUGH THE HOUSE TO RETURN RESTRICTIVE POWERS TO THE STATES SEN ARLEN SPECTER R PA WHOM THE AFLCIO GRANTED A THIRD TERM HAS PICKED UP THE LEGISLATION IN THAT CHAMBER EVEN WITHOUT THE BERMAN BILL IT ISN'T EASY TO GET A VIABLE OPENSHOP APPRENTICESHIP PROGRAM TAKE THE CASE OF LEONARD EDH OWNER OF WALTHER ELECTRIC IN CERES CALIF NEAR MODESTO A SWEDISH IMMIGRANT RAISED IN A WORLD OF WIDESPREAD CRAFT TRAINING HE'S CREATED A MODERN TEACHING FACILITY AT HIS COMPANY OFFICES MORE THAN 25 HIGHSCHOOL GRADUATE HIRES ARE LEARNING THE TRADE THERE BUT MR EDH CANNOT BE SURE A DECADE INTO THE QUEST WHETHER HIS PROGRAM WILL BE ALLOWED TO YIELD MANY JOURNEYMEN ELECTRICIANS HE'S BEEN THROUGH YEARS OF UNION RESISTANCE IN THE BUREAUCRACY AND THE COURTS AND HIS FOES ARE STILL TRYING TO CATCH HIM IN SOME TECHNICAL VIOLATION OF PAYROLL PROCEDURES THAT COULD VOID HIS EFFORTS UNIONS SHROUD ACCESS TO THEIR OWN APPRENTICESHIPS MR EDH COMPLAINS AT ONE TIME RACIAL DISCRIMINATION MOTIVATED THEIR ACTIONS BUT INCREASINGLY THEY ARE DRIVEN BY THE DESIRE TO PROTECT THE ARTIFICIALLY HIGH WAGES OF EXISTING MEMBERS BECAUSE THE BURDEN OF SETTING UP APPRENTICE TRAINING IS SO GREAT OTHER NONUNION FIRMS ARE RELYING ON PROGRAMS RUN BY THE ASSOCIATED BUILDERS AND CONTRACTORS ABC THEIR TRADE GROUP BUT IN THE LOS ANGELES METROPOLITAN AREA THESE EFFORTS TOO HAVE TAKEN YEARS TO GAIN APPROVAL AND SOME STILL ARE BEING STALLED A NONUNION ROOFING APPRENTICESHIP IN NORTHERN CALIFORNIA GOT GOING IN 1991 AFTER A FIVEYEAR DELAY AND HAS ABOUT 200 PARTICIPANTS IN THAT CASE AS IN CARPENTRY THE CORE ISSUE IS NOT SO MUCH RESTRICTED ENTRY TO THE FIELD AS SIMPLY AN INTENSE DESIRE BY UNION SHOPS TO DEFEND THEIR MARKET SHARE THE BACKDROP OF THIS WHOLE FIGHT IS THE DRAMATIC DECLINE OF THE UNIONIZED CONSTRUCTION INDUSTRY ALTHOUGH NONUNION CONTRACTORS CAN GET IDLE HANDS TO SLIP OVER FROM THE OTHER SIDE OR CAN RELY ON LABORERS TO DO SOME OF THE LESSSKILLED CRAFT WORK THEY OFTEN HUNGER FOR SANCTIONED APPRENTICES THE REASON IS PUBLIC WORKS IN A SLACK CONSTRUCTION PERIOD PROJECTS INVOLVING THE GOVERNMENT MAY ACCOUNT FOR A THIRD OF ALL BUSINESS UNDER THE FEDERAL DAVISBACON ACT AND SIMILAR STATE STATUTES A PREVAILING UNION WAGE MUST BE PAID ON THESE JOBS BUT APPRENTICES MAY BE USED FOR AS LITTLE AS HALF THE JOURNEYMAN PAY BECAUSE THESE APPRENTICES MUST BE OFFICIALLY SANCTIONED NONUNION CONTRACTORS IN SOME STATES CAN'T COMPETE FOR SOME PUBLIC WORKS BECAUSE THEY LACK A SUPPLY OF THIS CUTRATE PERSONNEL FOR ELECTRICIANS IN CALIFORNIA THE MARKET RATE FOR PRIVATE JOBS MAY BE 40 BELOW THE APPROXIMATELY 35ANHOUR JOURNEYMAN SCALE WITH HELPERS WHO ARE ABLE TO DO MANY OF THE CONDUIT AND SIMPLE OUTLET TASKS WHEN ALLOWED SAVINGS MAY BE EVEN GREATER THE RESULT IS MORE WORKERS ON MORE JOBS BUT FOR LESS MONEY THE UNIONS DON'T BUY THAT TRADEOFF SO THEY TRY TO PROTECT THEIR SCALE AND BY LIMITING SUPPLY FROM NONUNION TRAINING PROGRAMS MINIMIZE THE OUT OF WORK TIME FOR THEIR MEMBERS THE PUBLICPOLICY CHOICE THEN MIGHT BE REFLECTED IN THIS ROUGH EXAMPLE 100 CRAFTSMEN AT 20 TO 35 AN HOUR VS 200 AT 10 TO 25 AN HOUR IF THE SKILL LEVELS ARE ADEQUATE IN BOTH CASES A STATE AND NATION WITH A BLUECOLLAR EMPLOYMENT PROBLEM SHOULD PROBABLY CHOOSE THE LATTER IT WOULD ALSO ENJOY LOWER CONSTRUCTION AND REPAIR COSTS AND ALL THE SOCIAL BENEFITS THAT FOLLOW YET THIS HAS NOT BEEN THE THRUST IN REGULATED STATES EVEN ONES SUCH AS CALIFORNIA WITH A REPUBLICAN GOVERNOR HOLDING MOST OF THE LEVERS OF POWER THE ABC TRADE GROUP DESPITE ITS NOW OVERWHELMING EDGE WITHIN THE BUILDING INDUSTRY HAS BEEN BARELY ABLE TO BUDGE SACRAMENTO IN SOME OTHER MAJOR STATES ORGANIZED LABOR IS EVEN MORE ENTRENCHED ITS CONTROL IN THE NEW YORK METROPOLITAN AREA IS SO TIGHT THAT DURING THE GREAT 1980S HIGHRISE BOOM UNION WORK CREWS WERE BROUGHT FROM DISTANT CITIES WHILE LOCALS WANTED FOR JOBS UNFORTUNATELY BECAUSE TRAINING SUCH AS THE CLINTON ADMINISTRATION'S PLANNED SCHOOL TO WORK PROGRAM ENTAILS MAJOR STATE PARTICIPATION THE POLITICAL GRIP EXERCISED BY THE CONSTRUCTION TRADE UNIONS IS LIKELY TO LIMIT THE ABILITY TO PUT PEOPLE TO WORK IN SEVERAL KEY VOCATIONS YET THE WHITE HOUSE BACKS THE BERMAN BILL EXPANDED JOB OPPORTUNITIES IT APPEARS AREN'T WORTH RISKING ANOTHER TIFF WITH THE BIG LABOR BASE SAN FRANCISCO ATTORNEY MARK THIERMAN WHO HAS LITIGATED ON BEHALF OF NONUNION LABOR SAYS HE BELIEVES THAT EVEN IF BERMAN PASSES GROUNDS CAN BE FOUND TO SECURE THE OPENING OF NEW APPRENTICESHIP PROGRAMS IN THE BATTLEGROUND STATES BUT OTHERS DISAGREE TECHNOLOGY SHOULD SLOWLY DIMINISH THE IMPORTANCE OF THE CONSTRUCTION TRADES AS MORE STRUCTURES ARE COMPOSED OF MODULAR ARRANGEMENTS STRAIGHT FROM THE FACTORY BUT FOR SOME TIME TO COME THIS LINE OF WORK CAN BE THE TICKET TO A DECENT LIVING FOR MANY MORE IF ONLY ALL THE STATES CAN BE ENJOINED TO MAKE IT POSSIBLE 9401110088 940111 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE VENEZUELAN GOVERNMENT IMPOSED PRICE CONTROLS EFFECTIVE THROUGH FEBRUARY ON SOME BASIC ITEMS TO COMBAT PROFITEERING FROM A NEW VALUEADDED TAX OPPOSITION TO THE VAT WHICH TOOK EFFECT AT THE RETAIL LEVEL ON JAN 1 HAS BEEN INTENSE SHOPKEEPERS HAVE BEEN ACCUSED OF JACKING PRICES UP TO TAKE ADVANTAGE OF CONFUSION ABOUT THE TAX IMPOSED AT VARIOUS STAGES OF PRODUCTION THE EMERGENCY CONTROLS FOLLOWED A COURT'S SUSPENSION OF THE VAT AS UNCONSTITUTIONAL A RULING THE SUPREME COURT OVERTURNED LAST WEEK THE PRICE CONTROLS APPLY TO ITEMS EXEMPT FROM THE VAT SUCH AS FLOUR BREAD PASTA RICE SOAP AND SOME MEDICINES OFFICIALS SAID THE MEASURE DIDN'T SHIFT ECONOMIC POLICY VENEZUELA IN RECENT YEARS HAS MOVED TOWARD A FREER MARKET BUT WITH OIL REVENUE FALLING IT CONSIDERS THE VAT CRUCIAL TO BROADEN THE TAX BASE AND TACKLE A GROWING BUDGET DEFICIT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID IT WOULD NO LONGER PROMOTE OFFICIALS TO LET THEM RESIGN WITH INFLATED RESUMES TO RUN FOR ELECTIVE OFFICE LAST MONTH AFTER BEING ACCUSED OF FAVORITISM IN PROMOTING A JUNIOR OFFICIAL MITI'S INDUSTRIAL POLICY BUREAU CHIEF QUIT UNDER PROTEST SAYING THE PROMOTION FOLLOWED MITI'S CONVENTIONAL PRACTICE TO ENHANCE POLITICAL PROSPECTS MITI SAID IT NOW WOULD MAKE PERSONNEL CHANGES IMPARTIALLY AND REFRAIN FROM CREATING HIGHER POSTS FOR BUREAUCRATS INTENDING TO ENTER POLITICS HONG KONG WANTS TO SPEND 220 MILLION TO KEEP CONSTRUCTION OF ITS NEW AIRPORT ON TRACK THE BRITISH COLONY'S LEGISLATURE MAY DECIDE THIS MONTH WHETHER TO COMMIT MORE FUNDS OR STOP THE WORK PENDING A FINANCING PACT WITH CHINA WHICH TAKES CONTROL OF THE COLONY IN 1997 THE AIRPORT HAS BEEN TAKING SHAPE WHILE SINOBRITISH TALKS ON OVERALL FINANCING HAVE STALLED HONG KONG SAID THAT WITHOUT ADDITIONAL FUNDS THE MID1997 COMPLETION DATE CAN'T BE MET AND THAT COSTS WILL INCREASE AT LEAST 260 MILLION FOR EVERY SIX MONTHS OF DELAYS BUT THE TOTAL PROJECTED COST HAS SHRUNK 34 TO 2047 BILLION BECAUSE OF COMPETITIVE BIDDING OPENING A SESSION OF PARLIAMENT THE SINGAPORE GOVERNMENT SAID IT INTENDED TO RAISE THE LEGAL RETIREMENT AGE GRADUALLY TO 67 FROM 60 TO HELP THE ISLAND REPUBLIC COPE WITH A RAPIDLY GRAYING POPULATION THE NUMBER OF SINGAPOREANS AT LEAST 65 YEARS OLD IS FORECAST TO SWELL MORE THAN FOURFOLD TO 662000 FROM 164000 OVER THE NEXT 40 YEARS DWARFING 30 GROWTH IN THE POPULATION TO 35 MILLION THE GOVERNMENT SAID THAT LONGER LIFE SPANS MEAN THAT PEOPLE NEED TO STAY ECONOMICALLY ACTIVE LONGER INCREASING THE RETIREMENT AGE MAY HELP EASE CONCERNS THAT SINGAPORE'S PERSISTENT LABOR SHORTAGE WILL WORSEN AS THE POPULATION AGES BENEDICTINE MONKS HAVE UNEXPECTEDLY TOPPED SPAIN'S POP CHART WITH THEIR DOUBLE COMPACT DISK THE BEST OF GREGORIAN CHANTS WHICH HAS SOLD 230000 COPIES SINCE IT CAME OUT TWO WEEKS BEFORE CHRISTMAS PRODUCED BY EMIODEON THE 38 SELECTIONS SOME DATE BACK 1300 YEARS WERE RECORDED SINCE 1973 BY CLOISTERED MONKS OF SANTO DOMINGO DE SILOS AN 11THCENTURY MONASTERY IN NORTHERN SPAIN A GREGORIAN CHANT IS THE MONOPHONIC LITURGICAL MUSIC OF THE ROMAN CATHOLIC CHURCH TO ACCOMPANY MASS AND NAMED AFTER POPE GREGORY I UNDER WHOSE REIGN FROM 590604 THE MUSIC WAS FIRST COLLECTED BRAZIL'S CONGRESS THIS MONTH WILL REVIVE A CONSTITUTIONAL REVISION EFFORT TO RESTRUCTURE THE FEDERAL SYSTEM SIMPLIFY TAXES AND ELIMINATE SOME STATE MONOPOLIES SUCH AS IN OIL AND TELECOMMUNICATIONS OR OPEN THEM TO THE PRIVATE SECTOR VOTING ON ABOUT 17000 PROPOSED AMENDMENTS COULD BE COMPLETED BY MIDMARCH ACCORDING TO AN OFFICIAL IN CHARGE OF SCHEDULING THE GOVERNMENT HAS DECLARED CONSTITUTIONAL REFORM ESSENTIAL FOR MODERNIZING THE ECONOMY THE PROCESS FACES SOME POLITICAL OPPOSITION AND SOME HURDLES BECAUSE OF A LEGISLATIVE CORRUPTION SCANDAL AND THIS YEAR'S ELECTIONS THE EUROPEAN UNION COMMISSION PROPOSED THAT MEMBER STATES RECOGNIZE ONE ANOTHER'S LICENSES FOR GROUND SATELLITE EQUIPMENT MAKING IT EASIER FOR SERVICE PROVIDERS TO OPERATE THROUGHOUT THE EU PROVIDERS NOW NEED EQUIPMENT AUTHORIZATIONS IN EACH OF THE FORMER EUROPEAN COMMUNITY COUNTRIES THUS LARGE OPERATORS SUCH AS IN THE AUTO INDUSTRY MUST APPLY FOR THOUSANDS OF LICENSES TO LINK PLANTS AND DEALERSHIPS THE PROPOSAL WOULD REQUIRE JUST ONE LICENSE ALL EU MEMBERS MUST GO ALONG WITH THE NEW RULES WHICH WOULD BENEFIT CORPORATIONS THAT LINK THEIR OUTLETS OPERATORS OF MOBILE COMMUNICATIONS SYSTEMS AND SATELLITE NEWSGATHERING TEAMS THE PROPOSAL FOLLOWS EU LEGISLATION PASSED LAST OCTOBER THAT GRANTS SATELLITEEQUIPMENT MAKERS ACCESS TO ALL 12 MEMBER STATES' MARKETS ON THE BASIS OF ONE EU NATION'S APPROVAL OF THE EQUIPMENT CANADA POST GOOFED ROYALLY ON ITS BRITISH HERITAGE A SOUVENIR STAMP BOOK PUBLISHED BY THE POSTAL SERVICE DESCRIBES A VISIT TO THE COUNTRY IN 1860 BY THE PRINCE OF WHALES BOJNICE A VILLAGE IN WESTERN SLOVAKIA THAT CLAIMS A HAUNTED CASTLE WILL HOST WHAT IS BILLED AS THE FIRST INTERNATIONAL GHOST FESTIVAL ON APRIL 30 THE TOWN HOPES TO ATTRACT TOURISTS OCCULTISTS AND DISEMBODIED SPIRITS FROM AROUND THE WORLD 9401110087 940111 LETTERS TO THE EDITOR TROOPER AFFIDAVIT IS A FARCE ROBERT BARTLEY'S JAN 6 EDITORIALPAGE ARTICLE ON ARKANSAS SEX NOT INHALING AND WHITEWATER JUSTIFYING CONTINUED PRESS COVERAGE OF THE CURRENT SCANDALS INVOLVING BILL AND HILLARY CLINTON ANSWERS THE CRITICS OF PRESS COVERAGE INCLUDING YOUR OWN ALBERT HUNT CLEARLY AND FORTHRIGHTLY IN FACT TROOPER DANNY FERGUSON DID NOT SIGN AN AFFIDAVIT AND MADE NO SUCH STATEMENT UNDER OATH I AM ENCLOSING A PHOTOSTATIC COPY OF THE ACTUAL AFFIDAVIT IN QUESTION AS IT WAS PUBLISHED IN THE ARKANSAS DEMOCRATGAZETTE OF DEC 30 AS YOU MAY SEE THE AFFIDAVIT WAS NOT SIGNED BY TROOPER FERGUSON BUT WAS SIGNED BY ROBERT BATTON WHO STATED HE WAS SIGNING ON BEHALF OF HIS CLIENT IN A NEWSPAPER ARTICLE ACCOMPANYING THE DEPICTION OF THE AFFIDAVIT THE ARKANSAS DEMOCRATGAZETTE REPORT REVEALED THAT BETSEY WRIGHT HAD ATTEMPTED TO OBTAIN SUCH AN AFFIDAVIT DIRECTLY FROM MR FERGUSON BUT WAS ONLY ABLE TO OBTAIN AN AFFIDAVIT SIGNED BY HIS ATTORNEY THE REPORT FURTHER REVEALED THAT BRUCE LINDSEY LAWYER AND WHITE HOUSE AIDE TO PRESIDENT CLINTON SOLICITED AND OBTAINED THE ASSISTANCE OF LITTLE ROCK LAWYER STEPHEN ENGSTROM IN PREPARING THE ENCLOSED AFFIDAVIT THAT IS THE FACTS SURROUNDING THE AFFIDAVIT ARE AS FOLLOWSBETSEY WRIGHT CLINTON'S LONGTIME HENCHMAN AND FIXER CAME TO LITTLE ROCK LAWYER STEPHEN ENGSTROM AT THE REQUEST OF BILL CLINTON IN AN ATTEMPT TO PERSUADE TROOPER FERGUSON TO RECANT HIS EARLIER CLAIMS MADE TO THE LOS ANGELES TIMES THAT HE HAD BEEN OFFERED A JOB AS A UNITED STATES MARSHAL OR WITH THE FEDERAL EMERGENCY MANAGEMENT AGENCY IN EXCHANGE FOR HIS SILENCE ABOUT MR CLINTON'S CRIMINAL ABUSE OF POWER WHILE GOVERNOR OF ARKANSAS TROOPER FERGUSON REFUSED TO RECANT HIS STORY UNDER OATH WHICH COULD HAVE SUBJECTED HIM TO CRIMINAL PENALTIES IF THE STATEMENT UNDER OATH PROVED TO BE FALSE THEREUPON THE FIXER AND THE TWO LAWYERS HIT UPON THE IDEA OF HAVING MR FERGUSON'S LAWYER EXECUTE AN AFFIDAVIT UNDER OATH WHICH AS YOU MAY SEE ONLY STATES THAT MR FERGUSON TOLD THE LAWYER THE CONTENTS OF THE AFFIDAVIT THEREFORE NEITHER MR FERGUSON NOR HIS LAWYER HAS STATED UNDER OATH THAT PRESIDENT CLINTON NEVER OFFERED OR INDICATED A WILLINGNESS TO OFFER ANY TROOPER A JOB IN EXCHANGE FOR SILENCE OR HELP IN SHAPING THEIR STORIES NO ONE HAS SWORN TO THIS STATEMENT MR BARTLEY COULD ALSO HAVE NOTED THAT THE STATEMENT I HAVE JUST QUOTED IS NOT AS A MATTER OF LOGIC ONE THAT ANYONE CAN SWEAR TO OTHER THAN PRESIDENT CLINTON HIMSELF NEITHER TROOPER FERGUSON LAWYER BATTON STEPHEN ENGSTROM NOR BETSEY WRIGHT COULD POSSIBLY SWEAR THAT PRESIDENT CLINTON NEVER OFFERED A JOB TO ANY TROOPER BILL CLINTON ACTING THROUGH WRIGHT ENGSTROM AND BATTON HAS ENGAGED IN TRICKERY AND DECEPTION IN THE MATTER OF THE AFFIDAVIT OF DANNY FERGUSON BILL CLINTON IS NOT KNOWN AS SLICK WILLIE FOR NOTHING THE AFFIDAVIT IS A FARCE AND WAS EVIDENTLY EXECUTED FOR THE SOLE PURPOSE OF DECEIVING THE PUBLIC AND THE PRESS YOUR READERS MIGHT WANT TO KNOW WHY THIS WAS DONE 9401110086 940111 CHARTER FINANCIAL EQUITY HOLDER NEW YORK CHARTER FINANCIAL INC A MERCHANT BANK SPECIALIZING IN EQUIPMENT LEASING AND FINANCING SAID E M WARBURG PINCUS & CO A VENTURE BANKING FIRM MADE AN EQUITY INVESTMENT OF 20 MILLION IN THE COMPANY CHARTER FINANCIAL A PRIVATE CONCERN SERVING COMPANIES WITH SALES BETWEEN 5 MILLION AND 200 MILLION SAID THE FUNDS WOULD ALLOW IT TO INCREASE ITS VOLUME OF BUSINESS NEW YORKBASED WARBURG PINCUS WHICH IS PRIVATELY HELD HAS ABOUT 4 BILLION OF ASSETS UNDER MANAGEMENT 9401110085 940111 INTERNATIONAL UNDERDOG PRESIDENTIAL CANDIDATE MAKES MOST OF MEXICAN UPRISING BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CUAUHTEMOC CARDENAS HAS TROUBLE GETTING NOTICED THE LEFTIST CANDIDATE IN THE PRESIDENTIAL ELECTIONS THIS AUGUST SHOULD BE ONE OF THE BESTKNOWN MOST POWERFUL FIGURES IN MEXICO AFTER ALL HE CAME CLOSE TO WINNING THE PRESIDENCY SIX YEARS AGO HE IS ALSO THE SON OF ONE OF MEXICO'S MOST POPULAR PRESIDENTS LAZARO CARDENAS BUT TWO WELLDRESSED WOMEN WALKING OUT OF A HOUSE RIGHT NEXT TO MR CARDENAS'S CAMPAIGN HEADQUARTERS COULDN'T QUITE PLACE THE NAME NEVERMIND THAT THERE WAS A HUGE BUS PARKED RIGHT IN FRONT OF THEM WITH MR CARDENAS'S NAME PAINTED ON THE SIDE THE WOMEN REPEATED THE NAME CUAUHTEMOC CARDENAS SEVERAL TIMES THEN SAID SORRY NEVER HEARD OF HIM NOW HOWEVER THE UPRISING IN THE STATE OF CHIAPAS MAY BE GIVING MR CARDENAS HIS MOMENT IN THE HARSH MEXICAN SUN PREVIOUSLY HE WAS A ONEISSUE CANDIDATE COMPLAINING ABOUT THE LACK OF DEMOCRACY IN MEXICO THAT ISSUE HARDLY SEEMED LIKELY TO STAND UP TO THE CLAIMS THE RULING PARTY'S CANDIDATE LUIS DONALDO COLOSIO COULD MAKE ABOUT HOW HIS PARTY HAD TURNED AROUND MEXICO'S ECONOMY BUT AFTER CHIAPAS MR CARDENAS HAS BEEN HANDED A SECOND ISSUE THE POVERTY THAT AFFLICTS MUCH OF MEXICO THE RULING PARTY HAS ALSO CREATED AN OPENING FOR MR CARDENAS BY SEEMING TO BE INSENSITIVE TO THE CHIAPAS CRISIS ALTHOUGH REPORTS HAVE OCCASIONALLY SURFACED FOR ALMOST TWO YEARS THAT REBELS MIGHT BE TRAINING IN CHIAPAS THE GOVERNMENT DISMISSED THE TALK OUT OF HAND NOW THAT AN UPRISING HAS OCCURRED THE GOVERNMENT HAS SEEMED TO BE WILLING TO BELIEVE THE FIGHTING STEMMED FROM ANYTHING BUT FRUSTRATION AMONG INDIANS FED UP WITH THEIR POVERTY AND SEIZURES OF THEIR LAND FIRST THE GOVERNMENT BLAMED THE UPRISING ON THE INFLUENCE OF REBELS ACROSS THE BORDER IN GUATEMALA THEN ON THE CATHOLIC CHURCH THEN ON DRUG DEALERS PRESIDENT CARLOS SALINAS TRIED TO REGAIN THE INITIATIVE ON CHIAPAS YESTERDAY BY ANNOUNCING THE RESIGNATION OF INTERIOR MINISTER PATROCINIO GONZALEZ WHO HAS BEEN ACCUSED OF HUMANRIGHTS VIOLATIONS PRESIDENT SALINAS REPLACED MR GONZALEZ WITH ATTORNEY GENERAL JORGE CARPIZO WHO WAS ONCE THE HEAD OF THE NATIONAL HUMANRIGHTS COMMISSION AND WHO HAS A REPUTATION FOR RECTITUDE IN ADDITION PRESIDENT SALINAS ANNOUNCED THAT FOREIGN MINISTER MANUEL CAMACHO SOLIS HAD RESIGNED TO FILL A SPECIAL POST SEEKING PEACE AND RECONCILIATION IN CHIAPAS MR CAMACHO IS A HIGHPROFILE POLITICIAN KNOWN AS AN ABLE CONCILIATOR THE MORE THE GOVERNMENT SMASHES THE REVOLUTION THE WAY THEY'RE DOING NOW THE BETTER IT IS FOR CARDENAS SAID PRIMITIVO RODRIGUEZ A SOCIAL ACTIVIST BEFORE THE CABINET CHANGES IF MR CARDENAS WERE TO SOMEHOW WIN AND THE ODDS ARE STILL HEAVILY AGAINST HIM HIS PRESIDENCY WOULD MARK A MOVE BACK TOWARD THE MEXICO OF THE 1970S AND EARLY 1980S ANALYSTS SAY RELATIONS WITH THE US WOULD BECOME MORE STRAINED AND MR CARDENAS WOULD FOCUS MUCH MORE ON SPENDING TO SOLVE SOCIAL PROBLEMS THAN ON THE KINDS OF ECONOMIC REFORMS THAT HAVE LET PRESIDENT SALINAS BALANCE THE BUDGET AND CUT INFLATION FROM TRIPLE DIGITS TO SINGLE DIGITS IN AN INTERVIEW MR CARDENAS SAYS THAT ONE OF THE FIRST THINGS HE WOULD DO AS PRESIDENT IS AGAIN RENEGOTIATE MEXICO'S FOREIGN DEBT TO REDUCE MEXICO'S BURDEN IF WE COULD RENEGOTIATE IN 1987 WE CAN RENEGOTIATE IN 1995 HE SAYS MR CARDENAS SAYS HE WOULD TRY TO KEEP INFLATION LOW AND CONTROL ANY BUDGET DEFICIT HE ALSO WOULD AIM TO KEEP THE PESO FROM WEAKENING BUT HE ADDS WE DON'T WANT TO PUT THE WEIGHT OF THIS STABILITY ON THE MAJORITY OF THE WORKERS IN MEXICO HE SAYS HE WANTS TO MAINTAIN GOOD RELATIONS WITH THE US BUT MR CARDENAS WHO HAS BEEN CRITICAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT ALSO SAYS HE MIGHT SEEK TO RENEGOTIATE PARTS OF IT DEPENDING ON HOW IT WORKS OVER THE NEXT SEVERAL MONTHS FOR INSTANCE HE SAYS THAT IF MEXICAN GRAIN FARMERS ARE HURT TOO MUCH BY EFFICIENT US PRODUCERS HE MIGHT TURN AGAINST THE AGRICULTURAL PART IN THE INTERVIEW MR CARDENAS SOFTENS THE RHETORIC THAT FILLS HIS SPEECHES AND COMES ACROSS LESS AS A LEFTIST THAN SOMETHING AKIN TO A LIBERAL DEMOCRAT IN THE US THE 59YEAROLD MR CARDENAS COMES FROM A WEALTHY FAMILY HE NOT ONLY HAS A DEGREE IN CIVIL ENGINEERING FROM ONE OF MEXICO'S BEST SCHOOLS BUT ALSO DID GRADUATE WORK IN EUROPE HE SPEAKS VERY GOOD ENGLISH AND FRENCH MR CARDENAS HAD A LONG CAREER WITH THE RULING PARTY BEFORE SPLITTING AWAY IN 1988 HE HAD MOVED STEADILY UP THROUGH THE RANKS BUT MR CARDENAS WHO WANTED THE RULING PARTY'S NOMINATION FOR PRESIDENT IN 1988 DECIDED THE PARTY WAS INSUFFICIENTLY DEMOCRATIC TO AFFORD HIM A CHANCE AND FORMED HIS OWN PARTY SOME ANALYSTS THINK HE WOULD HAVE WON THE ELECTION IF NOT FOR VOTE FRAUD BY THE RULING PARTY MR CARDENAS NEEDS TO BE CAREFUL ABOUT TRYING TO ROUSE THE LEFT TOO MUCH WITH INFLAMMATORY TALK ABOUT CHIAPAS BECAUSE THE BLOODY MEXICAN REVOLUTION OF EARLY THIS CENTURY MAKES REVOLT A SCARY PROSPECT IN MEXICO BUT HE CLEARLY SEES AN OPENING AND INTENDS TO EXPLOIT IT EVEN IF IT MEANS SOMETIMES BEING INCENDIARY WE AREN'T GOING TO ALLOW THE IMPOSITION OF FRAUD IN THIS YEAR'S PRESIDENTIAL ELECTIONS HE SAID IN A STATEMENT LAST WEEK BECAUSE THE PRICE OF FRAUD AS WE ARE SEEING IS THAT OUR COUNTRY COULD BE COVERED WITH BLOOD 9401110084 940111 HELP WANTED GM SEEKS PENSION CHIEF BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MOTORS CORP WHICH HAS ONE OF THE NATION'S LARGEST CORPORATEPENSION SYSTEMS IS LOOKING FOR A SUCCESSOR TO ITS LONGTIME PENSION CHIEF W GORDON BINNS JR WHO IS RETIRING IN JUNE THE AUTO MAKER HAS HIRED A RECRUITING FIRM TO HELP FIND A SUCCESSOR TO MR BINNS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL MOTORS INVESTMENT MANAGEMENT CORP MR BINNS REACHES GM'S MANDATORY RETIREMENT AGE OF 65 ON JUNE 8 MR BINNS'S JOB IS ONE OF THE MOST COVETED IN THE PENSION WORLD HE OVERSEES 40 BILLION IN ASSETS FOR GM'S US PENSION PLANS AND AN ADDITIONAL 10 BILLION IN OTHER ASSETS AT THE AUTO MAKER MUCH OF WHICH IS ACTIVELY MANAGED EAGER TO GET A PIECE OF THE ACTION VIRTUALLY EVERY INVESTMENT MANAGER IN THE US CURRIES HIS FAVOR AND THE STOCKHOLDINGS ARE SO HUGE THAT GM'S PENSION BOSS HAS THE POWER TO MOVE MARKETS DURING THE OCTOBER 1987 CRASH THE GM PLANS HELPED PUSH THE US STOCK MARKET TO A 508POINT LOSS WITH WAVES OF SELLING TOTALING 11 BILLION IN CONTRAST FIDELITY INVESTMENTS THE GIANT MUTUAL FUND UNLOADED JUST 800 MILLION FOR PANICKY INDIVIDUAL INVESTORS ALL TOLD THE NEW YORK STOCK EXCHANGE SAW 208 BILLION IN VOLUME THAT DAY BUT FOR ALL ITS BULK IN ASSETS THE AUTO MAKER'S PENSION SYSTEM IS ALSO SADDLED WITH THE NATION'S BIGGEST UNFUNDED PENSION LIABILITY GM OFFICIALS ESTIMATED LAST YEAR THAT THE GAP WOULD TOTAL 24 BILLION AT THE END OF 1993 WHEN THE LIABILITY WOULD BE RECALCULATED TO REFLECT LOWER INTEREST RATES AND INCREASED PENSION BENEFITS ALTHOUGH THE COMPANY IS SEEKING REGULATORY APPROVAL TO CONTRIBUTE MORE THAN 532 BILLION OF ITS E SHARES TO THE PLANS THE DONATION WILL LEAVE A HOLE THAT GM EXPECTS ITS TOP PENSION EXECUTIVE TO PLUG PARTLY WITH SUPERLATIVE INVESTMENT RETURNS THE CHALLENGE WILL BE DELIVERING THOSE RETURNS AT A TIME WHEN MANY EXPERTS FORECAST A TOUGHENING INVESTMENT CLIMATE MR BINNS IS TRAVELING IN ASIA THIS WEEK ON BUSINESS AND COULDN'T BE REACHED FOR COMMENT CONSIDERED THE DEAN OF CORPORATEPENSION EXECUTIVES AND A FREQUENT SPOKESMAN FOR THEM IN WASHINGTON THE COURTLY SOFTSPOKEN SOUTHERNER JOINED GM AS A FINANCIAL ANALYST IN 1954 THE PHI BETA KAPPA GRADUATE OF WILLIAM & MARY ALSO HAS MASTER'S DEGREES FROM TWO OTHER SCHOOLS MOVED THROUGH FINANCE AND TREASURY JOBS TO HEAD PENSION INVESTMENTS IN 1981 AT THE TIME THE THEN20 BILLION FUND WAS MANAGED BY 17 BANKS AND INSURANCE COMPANIES MR BINNS ADDED NEW MANAGERS AND ASSET CLASSES TO THE POINT WHERE HE NOW EMPLOYS MORE THAN 70 OUTSIDE MONEY MANAGERS HIS STAFF HAS SWELLED TO 70 FROM 25 THEY OVERSEE ONE OF THE BROADEST ARRAYS OF INVESTMENTS OF ANY US PENSION SYSTEM DOMESTIC AND FOREIGN STOCKS AND BONDS EMERGING MARKETS' EQUITIES REAL ESTATE CORPORATERESTRUCTURING FUNDS VENTURE CAPITAL AND JUNK BONDS IN A RECENT INTERVIEW MR BINNS SAID THAT HE'D TRIED TO POSITION OURSELVES SO THAT INVESTMENTS WILL WORK OUT OVER THE LONG TERM PENSIONPLAN MANAGERS AT SOME OTHER COMPANIES ARE NOW SCRAMBLING TO GAIN EXPERIENCE WITH THE RISKIER ASSET CLASSES NEEDED TO BOOST INVESTMENT PERFORMANCE BUT MR BINNS SAID GM'S SYSTEM REQUIRES ONLY MINOR TINKERING OF ASSETCLASS WEIGHTINGS AS CERTAIN MARKETS BECOME OVER OR UNDERVALUED THEY WERE ONE OF THE EARLY SIGNIFICANT INVESTORS INTERNATIONALLY AND THEY ARE ONE OF THE LEADING INVESTORS IN THE NONTRADITIONALASSET CLASS SAYS GEORGE F RUSSELL JR CHAIRMAN OF FRANK RUSSELL CO A PENSION CONSULTING FIRM THAT ADVISES GM OVERALL GM SAYS THAT ITS PENSION PLANS HAVE AVERAGED A 135 RETURN OVER THE PAST DECADE INCLUDING DIVIDENDS AND PRICE APPRECIATION BUT BEFORE MANAGEMENT FEES SUCH AN AVERAGE RETURN BEATS GM'S ASSUMED RATE OF RETURN OF 10 THE 10YEAR RETURN PERFORMANCE ALSO NUDGES GM INTO THE TOP QUARTILE OF CORPORATE PLANS ACCORDING TO WILSHIRE ASSOCIATES INC A PENSION CONSULTING FIRM BUT SOME CRITICS SAY SUCH A LARGE STABLE OF MANAGERS MAY BOOST A FUND'S ANNUAL FEES WITHOUT NECESSARILY IMPROVING PERFORMANCE AND THE DIVERSIFICATION OFTEN TOUTED BY INVESTMENT ADVISERS AS A WAY TO SMOOTH OUT THE RISKS ASSOCIATED WITH DIFFERENT ASSET CLASSES HASN'T SPARED THE AUTO MAKER FROM ERRATIC RETURNS GM'S PENSION SYSTEM HAD A DISMAL 2 LOSS IN 1990 AND AN ANEMIC 64 RETURN IN 1992 BUT LAST YEAR IT SAW A HEALTHY 20 GAIN GM SAYS BECAUSE THE JOB IS EXPECTED TO PAY SOMETHING SHORT OF 1 MILLION IN ANNUAL SALARY AND BONUS GM MAY HAVE TROUBLE LANDING A PENSION CHIEF FROM THE INVESTMENTMANAGEMENT WORLD WHERE TOPRANKED PROFESSIONALS CAN EARN SIGNIFICANTLY MORE BUT RICHARD LANNAMANN A MANAGING DIRECTOR WITH RUSSELL REYNOLDS ASSOCIATES INC A RECRUITING FIRM THAT ISN'T INVOLVED IN THE GM SEARCH SAYS THE TRADEOFF IS THE PRESTIGE AND THE POWER A LEADING INTERNAL CANDIDATE IS W ALLEN REED 45 YEARS OLD TREASURER OF GM HUGHES ELECTRONICS CORP ACCORDING TO THREE PEOPLE FAMILIAR WITH GM'S PENSION SYSTEM MR REED HAS RESPONSIBILITY FOR HUGHES'S PENSION FUND LEADING PENSION EXECUTIVES EXPECTED TO BE CONSIDERED INCLUDE ROBERT ANGELICA WHO RUNS THE PENSION PLANS OF AMERICAN TELEPHONE & TELEGRAPH CO JOHN B CARROLL WHO OVERSEES GTE CORP'S PENSION FUNDS AND BEVERLY HAMILTON WHO RUNS THE PLANS OF ATLANTIC RICHFIELD CO MESSRS ANGELICA AND CARROLL DECLINED TO COMMENT AND MR REED AND MS HAMILTON COULDN'T BE REACHED FOR COMMENT GM WOULDN'T CONFIRM OR DENY INDIVIDUAL CANDIDACIES DALE HANSON THE SHAREHOLDER ACTIVIST WHO HEADS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS EXPRESSED INTEREST IN THE JOB AND SOME GM EXECUTIVES HAVE URGED HIS CONSIDERATION ACCORDING TO ONE PENSION EXECUTIVE MR HANSON COULDN'T BE REACHED FOR COMMENT MR BINNS HAS TAKEN SOME CAUTIOUS STEPS TO SUPPORT THE CORPORATEGOVERNANCE MOVEMENT PLEDGING 100 MILLION LAST YEAR TO A TURNAROUND FUND COMMITTED TO SHAREHOLDERRIGHTS PRINCIPLES AND BECOMING ONE OF THE FIRST HALFDOZEN CORPORATE MEMBERS OF THE ACTIVIST COUNCIL OF INSTITUTIONAL INVESTORS BUT SHAREHOLDER ACTIVISTS AND OTHERS DON'T REGARD MR BINNS AS A BOLD PIONEER IN CORPORATE GOVERNANCE AND GM MIGHT HAVE A HARD TIME EMBRACING SUCH ACTIVISM SINCE ANGRY SHAREHOLDERS CONTRIBUTED TO PRESSURE ON THE AUTO MAKER TO REPLACE ITS OWN CHIEF EXECUTIVE IN LATE 1992 9401110083 940111 STRONGSVILLE SAVINGS BANK'S STOCK STRONGSVILLE OHIO STRONGSVILLE SAVINGS BANK SAID SHAREHOLDERS APPROVED INCREASING THE COMPANY'S AUTHORIZED CAPITAL STOCK TO 10 MILLION SHARES FROM TWO MILLION IN A NEWS RELEASE THE COMPANY SAID THE INCREASE IS AIMED AT PROVIDING FLEXIBILITY TO THE BOARD TO CONSIDER A POSSIBLE STOCK SPLIT AS WELL AS FOR CORPORATE PLANNING CURRENTLY THE COMPANY HAS 1265400 COMMON SHARES OUTSTANDING A SPOKESMAN SAID 9401110082 940111 MTV LATINO PLANS A LAUNCH MIAMI MTV LATINO SAID IT WILL LAUNCH ITS 24HOUR SPANISHLANGUAGE CABLE NETWORK IN THE DOMINICAN REPUBLIC VENEZUELA AND PUERTO RICO BY FEB 1 MTV LATINO A UNIT OF VIACOM INC SAID ITS ENTRANCE INTO THE THREE NEW CARIBBEAN MARKETS WILL ADD 30000 NEW VIEWERS TO ITS AUDIENCE THE NETWORK SAID IT ALREADY REACHES MORE THAN TWO MILLION PEOPLE IN 17 COUNTRIES IN THE CARIBBEAN AND LATIN AMERICA 9401110081 940111 TECHNOLOGY & MEDICINE DRUG INDUSTRY TO LAUNCH TV ADS AIMED AT POLICY MAKERS IN MOVE TO BOOST IMAGE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STUNG BY CRITICISM OF THE HIGH COST OF PRESCRIPTION MEDICINES THE PHARMACEUTICAL INDUSTRY WILL TRY TO IMPROVE ITS IMAGE WITH ITS FIRSTEVER NATIONAL TV AD CAMPAIGN BEGINNING NEXT WEEK MONDAY MAJOR DRUG MAKERS WILL BEGIN AIRING DAILY A SET OF COMMERCIALS TO RUN DURING THE NETWORKS' HIGHLY VISIBLE MORNING NEWS SHOWS AND EVENING NEWSCASTS THE ADS ARE PART OF AN ESTIMATED 12 MILLION TO 15 MILLION YEARLONG PUBLIC RELATIONS PROGRAM TO REHABILITATE A REPUTATION THAT MANY INDUSTRY PEOPLE COMPLAIN HAS BEEN MALIGNED FOR EXCESSIVE PRICING POLICIES BY THE WHITE HOUSE OTHER ELECTED OFFICIALS AND CONSUMER ADVOCATES THE COMMERCIALS AND A COMPANION SET OF PRINT ADS TO RUN IN NATIONAL MAGAZINES ARE AIMED AT POLICY MAKERS AND OPINION LEADERS INDUSTRY OFFICIALS SAID BUT ONE LONGTIME INDUSTRY CRITIC SEN DAVID PRYOR D ALA SAID THE CAMPAIGN WILL BACKFIRE BECAUSE IT WILL SEND THE MESSAGE THAT DRUG MAKERS HAVE MORE MONEY THAN THEY KNOW WHAT TO DO WITH INDUSTRY OFFICIALS SAID THE CAMPAIGN WASN'T DESIGNED TO CRITICIZE THE WHITE HOUSE'S HEALTH PLAN COMMERCIALS BY THE HEALTHINSURANCE INDUSTRY LAST FALL DREW THE IRE OF HILLARY RODHAM CLINTON AND OTHERS IN THE ADMINISTRATION THE DRUG MAKERS' OBJECTIVE AN INDUSTRY SPOKESMAN SAID WAS TO INCREASE PUBLIC AWARENESS OF THE COMPANIES' PRIMARY ROLE IN DISCOVERING MEDICINES IN ITS POLLING THE INDUSTRY HAS LEARNED THAT MOST PEOPLE HAVE NEGATIVE FEELINGS ABOUT IT MOREOVER TWOTHIRDS OF THE PUBLIC BELIEVE MOST NEW DRUGS COME FROM GOVERNMENT OR ACADEMIC RESEARCH THE INDUSTRY SAYS 90 OF MEDICINES COME FROM CORPORATE RESEARCH MANY DRUGCOMPANY EXECUTIVES SAY UNFAVORABLE PUBLIC OPINION HAS ENCOURAGED THE WHITE HOUSE AND SOME IN CONGRESS TO HIT THE INDUSTRY WITH PRICE CONTROLS IN PROPOSED HEALTH LEGISLATION A DEBATE HAS FLARED IN MEETINGS OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE INDUSTRY'S WASHINGTON TRADE GROUP OVER HOW BEST TO MEND THE COMPANIES' TATTERED IMAGE CONSULTANTS HAVE TOLD INDUSTRY OFFICIALS THAT WITHOUT IMPROVING PUBLIC RELATIONS THEIR EFFORTS TO SWAY CONGRESS ARE DOOMED THE INDUSTRY DOESN'T HAVE MUCH EQUITY WITH THE PUBLIC RIGHT NOW SAID ANTHONY FISKETT A PUBLICRELATIONS SPECIALIST AT MERCK & CO WHO HELPED FASHION THE CAMPAIGN AS PART OF A PMA COMMITTEE WE AGREED THAT THE INDUSTRY NEEDED TO DO SOMETHING VISIBLE TO EDUCATE PEOPLE ESPECIALLY IMPORTANT OPINION MAKERS THAT IT IS THE DRUG INDUSTRY THAT IS PRINCIPALLY RESPONSIBLE FOR SEEKING NEW BREAKTHROUGH MEDICINES THE PRINCIPAL TV COMMERCIAL WILL FEATURE PEOPLE TOUCHED BY DISEASE WE DON'T HAVE 10 OR 15 YEARS TO WAIT FOR A CURE SAYS A WOMAN WHOSE BROTHER HAS AIDS A VOICEOVER SAYS AMERICA WE HEAR YOU AND WE SHARE YOUR URGENCY IT ALSO SAYS THE INDUSTRY HAS 55000 PEOPLE SEARCHING FOR CURES THAT IT IS WORKING ON 174 EXPERIMENTAL MEDICINES FOR AIDS BREAST CANCER OR ALZHEIMER'S DISEASE AND THAT 90 OF ALL DRUG DISCOVERIES COME FROM OUR RESEARCH THE INDUSTRY HAS ARGUED THAT HEALTHREFORM PLANS TO RESTRICT NEW DRUG PRICES WILL REDUCE THE ABILITY TO FUND FURTHER RESEARCH IT ALSO HAS ARGUED THAT PRICE CONTROLS ARE UNNECESSARY BECAUSE COMPETITION HAS STUNTED THE RISE IN PRICES BUT SEN PRYOR SAID THE AD MIGHT BE MISLEADING SINCE MANY OF OUR MOST IMPORTANT DRUGS FOR CANCER AND AIDS HAVE COME FROM RESEARCH SUPPORTED BY THE FEDERAL GOVERNMENT 9401110080 940111 KEYSTONE FINANCIAL ACQUISITION HARRISBURG PA KEYSTONE FINANCIAL INC SAID IT COMPLETED THE ACQUISITION OF WM BANCORP A CUMBERLAND MD BANK HOLDING COMPANY WM SHAREHOLDERS WILL RECEIVE 167 SHARES OF KEYSTONE COMMON STOCK FOR EACH OF THE 13 MILLION WM SHARES OUTSTANDING FOR A DEAL VALUED AT ABOUT 74 MILLION IN RETURN KEYSTONE GETS WM'S 21 OFFICES IN MARYLAND AND WEST VIRGINIA AND ITS 350 MILLION IN ASSETS KEYSTONE THE NINTHLARGEST BANK HOLDING COMPANY IN PENNSYLVANIA WITH ASSETS OF MORE THAN 3 BILLION HAS ABOUT 18 MILLION SHARES OUTSTANDING IN TRADING ON THE NASDAQ STOCK MARKET KEYSTONE CLOSED AT 31625 A SHARE DOWN 3750 CENTS 9401110079 940111 BIG THREE'S SHARES JUMP ON ESTIMATES OF 4THQUARTER GAINS OUTLOOK FOR 1994 BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT BIG THREE AUTO STOCKS SURGED YESTERDAY ON EXPECTATIONS OF STRONG FOURTHQUARTER PROFITS AND AN EVEN BETTER 1994 OPTIMISM IS RUNNING SO HIGH THAT SEVERAL AUTO ANALYSTS SPECULATE THAT GENERAL MOTORS CORP MADE MONEY ON ITS CORE NORTH AMERICAN AUTOMOTIVE OPERATIONS AFTER EXPENSES TAXES AND INTEREST FOR THE FIRST TIME IN MORE THAN THREE YEARS IN CLEAN ACCOUNTING THEIR NORTH AMERICAN OPERATIONS SHOULD BE IN THE BLACK SAID DAVID HEALY SG WARBURG'S AUTO ANALYST UPBEAT MEETINGS WITH INDUSTRY EXECUTIVES DURING THE PREVIEW DAYS FOR THE DETROIT AUTO SHOW LAST WEEK LED SOME ANALYSTS TO RETURN TO THEIR OFFICES YESTERDAY AND START RAISING THEIR EARNINGS FORECASTS AS A RESULT GM CLOSED AT 5925 UP 1375 IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE FORD MOTOR CO'S SHARES JUMPED 2625 TO 6725 AND CHRYSLER CORP ROSE 1625 TO 5875 LAST YEAR WAS A LITTLE BIT BETTER THAN WHAT PEOPLE WERE LOOKING FOR SAID WENDY BEALE NEEDHAM SMITH BARNEY SHEARSON'S AUTO ANALYST THE BIG THREE'S PRICING WAS BETTER AND THE PRODUCT MIX WAS BETTER OUTPUT FOR THE FOURTH QUARTER WAS THE STRONGEST SINCE THE FOURTH QUARTER OF 1988 WITH THE BIG THREE WRAPPING UP 1993 WITH HEALTHY GAINS IN SALES OF CARS AND LIGHT TRUCKS AS WELL AS MARKET SHARE IN THE US GM'S ROBUST FOURTHQUARTER PRODUCTION AND PROGRESS ON COSTCUTTING HAVE LED ANALYSTS TO FORECAST FOURTHQUARTER EARNINGS RANGING BETWEEN 468 MILLION AND 11 BILLION OR 56 CENTS TO 130 A SHARE THAT WOULD COMPARE WITH A YEAREARLIER FOURTHQUARTER LOSS OF 6518 MILLION OR 125 A SHARE AFTER CHARGES FORD EXECUTIVES APPARENTLY CONVINCED ANALYSTS THAT THEY ARE SLASHING HIGH MARKETING COSTS AND BOOSTING PROFITS PER VEHICLE IN CORE AUTOMOTIVE OPERATIONS WE BELIEVE THAT THEY BROUGHT MARKETING COSTS DOWN AS MUCH AS 300 A UNIT TO 600 A CAR SAID JACK KIRNAN THE SALOMON BROTHERS' AUTO ANALYST AUTO ANALYSTS NOW ESTIMATE FORD EARNED BETWEEN 400 MILLION AND 830 MILLION OR 68 CENTS TO 145 A SHARE IN THE FOURTH QUARTER THAT COMPARES WITH A LOSS OF 840 MILLION OR 185 A SHARE A YEAR EARLIER CHRYSLER WHICH DAZZLED AUTOSHOW AUDIENCES WITH ITS NEW JA AND NEON SMALL CARS WAS EXPECTED TO REPORT EARNINGS BETWEEN 637 MILLION AND 750 MILLION OR 160 AND 185 A SHARE COMPARED WITH PROFIT OF 356 MILLION OR 112 A SHARE A YEAR EARLIER 9401110078 940111 SMALL STOCK FOCUS INDEXES STOP JUST SHY OF RECORD HIGHS BUT ANALYSTS EXPECT A QUICK CATCH UP BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALL COMPANY STOCK PRICES STOPPED JUST SHORT OF THEIR CLOSING HIGHS AS THE DOW JONES INDUSTRIAL AVERAGE SURGED TO A FOURTH STRAIGHT RECORD CLOSE BUT SMALLER STOCKS WILL LIKELY PLAY CATCHUP THIS WEEK ANALYSTS SAY TO REACH NEW HIGHS OF THEIR OWN JANUARY IS TYPICALLY A STRONG MONTH FOR EQUITIES AND SMALL ISSUES HISTORICALLY HAVE LED THE SURGE THE RUSSELL 2000 INDEX A MEASURE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE 057 POINT OR 022 TO END AT 25975 JUST OFF ITS ALLTIME HIGH OF 26017 SET NOV 2 1993 SOARING HEALTHMAINTENANCE ORGANIZATION ISSUES AND TRANSPORTS CARRIED THE NASDAQ COMPOSITE INDEX UP 375 POINTS OR 048 TO 78669 IN THE MIDAFTERNOON THE INDEX TRADED SLIGHTLY ABOVE ITS OCT 15 1993 CLOSING HIGH OF 78742 ADVANCING NASDAQ ISSUES RAN AHEAD OF DECLINERS 1579 TO 1521 ON NASDAQ NATIONAL MARKET VOLUME OF 2601 MILLION SHARES DOWN FROM FRIDAY'S 2774 MILLION SHARES OVERALL VOLUME DIPPED TO 3134 MILLION SHARES FROM 3301 MILLION SHARES MEANWHILE ON THE NEW YORK STOCK EXCHANGE INVESTORS' CONTINUING LOVE AFFAIR WITH LARGE CYCLICAL ISSUES TOOK THE INDUSTRIAL AVERAGE UP 4474 POINTS OR 117 TO 386551 PAST FRIDAY'S RECORD BUT THE ROMANCE ISN'T EXPECTED TO LAST INDEFINITELY I WOULDN'T READ TOO MUCH INTO THIS SAID MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER INC SMALLCAP STOCKS ARE MORE LIKELY TO SEE A PRICETOEARNINGS RATIO EXPANSION SO I WOULDN'T CONCLUDE THAT THEY WILL MISS OUT IN TERMS OF PERFORMANCE ORNDA HEALTHCORP NASHVILLE TENN ADDED 1 5/8 TO 19 1/8 ON A REPORT IN BARRON'S THAT THE OWNER AND OPERATOR OF ACUTECARE HOSPITALS IS AMONG THOSE IN THE INDUSTRY THAT REALIZE THEY MUST CUT COSTS AND INCREASE MARKET SHARE AS WELL AS SHARE RISK ONCE CARRIED BY TRADITIONAL INDEMNITY INSURERS SHARES OF CAMBRIDGE BIOTECH SOARED 5/8 TO 2 7/8 THE WORCESTER MASS CONCERN SAID IT RECEIVED A PATENT FOR A NEW DRUGDELIVERY SYSTEM THAT COULD ELIMINATE THE NEED FOR CERTAIN KINDS OF INJECTIONS THE SYSTEM PERMITS THE DELIVERY OF CERTAIN MEDICATIONS BY NASAL SPRAY AND EYEDROPS LOWER FISCAL THIRDQUARTER EARNINGS PUSHED SHARES OF PHYSICIANS CLINICAL LABORATORY SACRAMENTO CALIF 2 1/4 LOWER TO 10 THE COMPANY SAID IT EARNED SIX CENTS A SHARE IN THE THIRD QUARTER DOWN FROM A YEAREARLIER 21 CENTS CARL KARCHER ENTERPRISES IMPROVED 2 TO 13 5/8 THE ANAHEIM CALIF DEVELOPER OF QUICKSERVICE RESTAURANTS SAID IT SIGNED A DEFINITIVE LETTER OF INTENT WITH BOSTON CHICKEN TO DEVELOP AND OPERATE UP TO 300 BOSTON CHICKEN STORES IN SOUTHERN CALIFORNIA AND SACRAMENTO CALIF TERMS WEREN'T DISCLOSED ON THE AMERICAN STOCK EXCHANGE CITADEL HOLDING TUMBLED 2 TO 8 THE GLENDALE CALIF SAVINGS AND LOAN HOLDING COMPANY AND ITS FIDELITY FEDERAL BANK SUBSIDIARY SAID THEY ARE FORMING A RESTRUCTURING PLAN THAT MIGHT INCLUDE THE SALE OF CITADEL'S CONTROLLING INTEREST IN THE BANK NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 139 WHILE 17 HIT NEW LOWS 9401110077 940111 ABREAST OF THE MARKET INDUSTRIALS SURGE 4474 TO 386551 FOR THE FOURTH STRAIGHT RECORD BY DAVE PETTIT AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS POURED INTO THE STOCK MARKETS ENTICED BY THE STRING OF THREE STRAIGHT RECORDS IN BLUE CHIPS LAST WEEK THE DOW JONES INDUSTRIAL AVERAGE SURGED 4474 OR 117 TO 386551 A FOURTH CONSECUTIVE RECORD WHILE MANY BROADBASED INDEXES TOPPED HIGHS THAT WERE SET DEC 28 BIG BOARD VOLUME TOTALED 317598200 SHARES COMPARED WITH 323366970 SHARES FRIDAY ADVANCING ISSUES TOPPED DECLINERS 1326 TO 852 ANALYSTS SAID THERE WEREN'T ANY FRESH NEWS DEVELOPMENTS TO SPUR THE BUYING JUST A FEAR AMONG INVESTORS THAT THEY WOULD MISS OUT ON A STRONG NEW RALLY A LOT OF PEOPLE HAVE BEEN SITTING AROUND WATCHING THE DOW RISE AND IT BECAME TOO MUCH TO IGNORE SAID PHILIP ROTH A TECHNICAL ANALYST AT DEAN WITTER REYNOLDS SOME PEOPLE WHO WERE EXPECTING AN EARLY PULLBACK IN 1994 ARE GIVING UP AND BUYING SHARES ECONOMICALLY SENSITIVE STOCKS LED THE ADVANCE AS THEY HAD DONE IN THE PRIOR THREE SESSIONS AUTO MAKERS' SHARES WERE AMONG THE STRONGEST WITH GENERAL MOTORS UP 1 3/8 TO 59 1/4 FORD MOTOR UP 2 5/8 TO 67 1/4 AND CHRYSLER UP 1 5/8 TO 58 5/8 PETER ANDERSON CHIEF INVESTMENT OFFICER AT IDS ADVISORY GROUP SAID STOCKS ARE BENEFITING FROM RECENT STATISTICS SHOWING GROWTH AND THE CONTINUED LOW LEVEL OF INTEREST RATES THE ECONOMIC BACKDROP COULDN'T BE BETTER HE SAID THE STANDARD & POOR'S 500STOCK INDEX RALLIED 537 OR 114 TO 47527 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX JUMPED 242 OR 093 TO 26276 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 481 OR 108 TO 44967 EACH FINISHED WELL ABOVE THE RECORDS SET LATE LAST MONTH IN INTRADAY TRADING THE NASDAQ COMPOSITE INDEX RALLIED ABOVE ITS RECORD CLOSING LEVEL BUT FINISHED BELOW THAT MARK UP 375 OR 048 AT 78669 ITS CLOSING HIGH OF 78742 WAS SET OCT 15 COMPUTER TECHNOLOGY AND BIOTECHNOLOGY SHARES HELPED TO LEAD YESTERDAY'S ADVANCE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX MEANWHILE DROPPED 071 OR 015 TO 47878 ENDING A 12SESSION WINNING STREAK ECONOMICALLY SENSITIVE TRUCKING RAILROAD AND AIRLINES STOCKS SURGED LIFTING THE DOW JONES TRANSPORTATION AVERAGE 2037 OR 113 TO 181958 TOPPING A RECORD THAT WAS SET THURSDAY CSX ROSE 1 1/4 TO 86 1/2 AND DELTA AIR LINES ADDED 1 1/4 TO 56 1/4 ROADWAY SERVICES GAINED 1 5/8 TO 64 ON THE NASDAQ STOCK MARKET MANY GROWTH STOCKS ALSO JUMPED SUCH AS PROCTER & GAMBLE UP 2 1/8 TO 58 7/8 BUT MR ROTH THE DEAN WITTER ANALYST NOTED THAT MANY OF THE GROWTHSTOCK GAINERS WERE CYCLICAL CONSUMER ISSUES WALT DISNEY CO JUMPED 1 1/4 TO 47 3/4 MCDONALD'S RALLIED 1 1/8 TO 58 1/4 AND MAYTAG ADDED 1/2 TO 18 1/8 THE PLAYERS IN THE PARAMOUNT COMMUNICATIONS TAKEOVER DRAMA THOUGH MOVED AGAINST THE UPWARD TREND ALTHOUGH A MERGER AGREEMENT WITH BLOCKBUSTER ENTERTAINMENT ALLOWED VIACOM TO INCREASE ITS BID THE WALL STREET JOURNAL REPORTED THAT THE VALUE OF THE VIACOM OFFER STILL APPEARED TO LAG BEHIND THAT OF A BID FROM QVC NETWORK BLOCKBUSTER EASED 1/4 TO 28 IN BIG BOARDLEADING VOLUME OF 91 MILLION SHARES PARAMOUNT LOST 1 7/8 TO 77 3/8 VIACOM CLASS B FELL 2 3/4 TO 38 1/4 ON THE AMEX AND QVC SLIPPED 1 3/8 TO 39 1/4 ON NASDAQ ORACLE GAINED 1 3/8 TO 33 1/8 THE WALL STREET JOURNAL REPORTED THE COMPANY WON A COVETED CONTRACT TO SUPPLY MULTIMEDIA GEAR AND SOFTWARE TO BELL ATLANTIC CORP GAINING WHAT COULD BE A KEY ALLY IN THE PROMISING MARKET FOR NEXTGENERATION COMMUNICATIONS NETWORKS TELEFONOS DE MEXICO ADRS SLIPPED 1 1/8 TO 65 1/2 AFTER REPORTS SURFACED THAT THE MEXICAN GOVERNMENT SAID IT PLANS TO SELL ITS 46 STAKE IN THE FIRM THROUGH A CONVERTIBLE BOND OFFERING VIA MERRILL LYNCH TELMEX AND OTHER MEXICAN ADRS ALSO WERE HURT BY CONTINUING FEARS ABOUT THE REBEL UPRISING IN MEXICO GRUPO TRIBASA SHED 2 TO 32 GRUPO FINANCIERO SERFIN FELL 2 3/8 TO 27 3/8 AND GRUPO MEXICANO DE DESARROLLO LOST 1 5/8 TO 23 1/8 LOWE'S COS JUMPED 4 OR 73 TO 59 THE BUILDINGMATERIALS RETAILER SAID ESTIMATES AT THE HIGH END OF ANALYSTS' VIEWS FOR THE FOURTH QUARTER ARE REASONABLE WELL ABOVE THE MEAN ESTIMATE OF 22 CENTS A SHARE LOWE'S SAID THE RANGE IS FROM 18 CENTS TO 31 CENTS A SHARE US SURGICAL IMPROVED 2 OR 84 TO 25 7/8 THE COMPANY SAID ITS PATENT SUIT AGAINST JOHNSON & JOHNSON'S ETHICON UNIT WILL GO TO A JURY TRIAL TOMORROW THE SUIT ALLEGES THAT ETHICON'S LIGACLIP APPLIER INFRINGES US SURGICAL'S PATENT ON ITS ENDOCLIP APPLIER RITE AID GAINED 7/8 TO 19 1/4 ON HEAVY BIG BOARDCOMPOSITE VOLUME AFTER GOLDMAN SACHS & CO UPGRADED THE SHARES TO TRADING BUY FROM MARKET PERFORMER THE CAMP HILL PA COMPANY SAID FRIDAY THAT IT PLANS TO SELL FOUR OF ITS NONDRUGSTORE BUSINESSES CLOSE 200 UNDERPERFORMING DRUGSTORES AND BEGIN A DUTCH AUCTION CASH SELFTENDER 9401110076 940111 MARKETING & MEDIA MARKETSCAN ADULTS WARM UP TO HOT COCOAS TEMPTED BY SOME EXOTIC FLAVORS BY NEELA BANERJEE ENOUGH OF CHOCOLATE MUSTACHES AND TINY MARSHMALLOWS SAY HOT CHOCOLATE MAKERS THINK INSTEAD ORANGE CAPPUCCINO AND SUISSE CHOCOLATE TRUFFLE TO TEMPT THE MATURE PALATE NESTLE SA HERSHEY FOODS CORP AND CONAGRA INC'S SWISS MISS UNVEILED NEW LINES OF HOT CHOCOLATE LAST YEAR WITH NAMES REDOLENT OF FINE CONFECTIONS AND LIQUEURS AND COMPANIES THAT HAVE PRODUCED GOURMET AND FLAVORED COCOA FOR YEARS ARE NOW AGGRESSIVELY PUSHING INTO SUPERMARKETS AND OTHER MASSMARKET CHANNELS EXOTIC HOT COCOAS HOPE TO CASH IN ON AMERICA'S NEWFOUND THIRST FOR FUNKY BEVERAGE FLAVORS SNAPPLE BEVERAGE CORP'S NET INCOME TRIPLED IN THIRD QUARTER 1993 AS MORE PEOPLE GULPED DOWN ITS PEACH ICED TEA AND KIWISTRAWBERRY JUICE DRINK WHILE SALES OF MASSMARKET COFFEES HAVE TUMBLED KRAFT GENERAL FOODS' INTERNATIONAL COFFEES HAVE FLOURISHED LARGELY ON THE STRENGTH OF A FRENCH VANILLA CAFE FLAVOR THE GOURMET COCOA OFFERINGS ARE GENERALLY LESS SWEET AND DARKER THAN TRADITIONAL INSTANT HOT CHOCOLATE NESTLE'S EUROPEAN STYLE HOT CHOCOLATES COME IN CHOCOLATE IRISH CREME FLAVOR FOR EXAMPLE AND SWISS MISS OFFERS A PRALINES AND CREAM HOT CHOCOLATE IN ITS PREMIERE COCOAS LINE RELATIVE NEWCOMER LAND O'LAKES INC MAKES INSTANT AMARETTO AND CHOCOLATE MINT COCOAS PEOPLE WANT BASIC TRUSTED FLAVORS IN A NEW GUISE SOMETHING MORE EXCITING SAYS TOM PIRKO A MANAGEMENT CONSULTANT WITH BEVMARK INC IT'S LIKE THEY WANT THEIR EXISTING BOYFRIEND BUT THEY WANT HIM TO LOOK LIKE FABIO PARTLY BECAUSE OF THE NEW PRODUCTS THE NEARLY 200 MILLION COCOA MARKET GREW 106 IN THE 52 WEEKS ENDED NOV 7 MAINSTAYS SUCH AS NESTLE'S CARNATION HOT COCOA MIX AND SWISS MISS WITH AND WITHOUT MARSHMALLOWS STILL LEAD THE PACK ACCOUNTING FOR ABOUT 78 OR 1536 MILLION OF SUPERMARKET SALES ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE BUT LAND O'LAKES' EIGHT COCOA CLASSICS FLAVORS INCREASED THEIR MARKET SHARE TO 1 FROM 03 THE YEAR BEFORE OR TO 21 MILLION FROM 583000 LAND O'LAKES BEGAN SELLING COCOA TO HOTELS AND CAFETERIAS EIGHT YEARS AGO AND INTRODUCED IT IN SUPERMARKETS IN 1991 GHIRARDELLI CHOCOLATE CO SAYS IT HAS WITNESSED AN INCREDIBLE INCREASE IN SALES IN THE LAST TWO OR THREE YEARS OF ITS SWEET GROUND CHOCOLATE ONCE VIEWED ONLY AS A BAKING COCOA SINCE IT EXPANDED DISTRIBUTION TO SUPERMARKETS MOST COCOA MAKERS TARGET PEOPLE WHO ABANDONED HOT CHOCOLATE ONCE THEY HIT PUBERTY AND NOW PREFER PREMIUM COFFEES WE WANT TO APPEAL TO A GENERATION THAT HASN'T DRUNK HOT CHOCOLATE IN A WHILE SAYS KAY CARPENTER A SPOKESWOMAN FOR CONAGRA'S HUNTWESSON INC UNIT MAKERS OF SWISS MISS AND ITS NEW PREMIERE COCOAS THEY'VE BEEN EXPOSED TO A VARIETY OF TASTES AND ARE MORE EXPERIMENTAL WITH WHAT THEY EAT AND DRINK COCOA MERCHANTS ARE WOOING WOMEN IN PARTICULAR PITCHING THEIR NEW BEVERAGES AS A LESS FATTENING ALTERNATIVE TO OTHER CHOCOLATE TREATS SWISS MISS'S DARK CHOCOLATE TRUFFLE PREMIERE COCOA HAS 140 CALORIES AND FOUR GRAMS OF FAT WHILE LAND O'LAKES COCOAS HAVE 160 CALORIES AND FIVE GRAMS OF FAT IN COMPARISON A SNICKERS BAR HAS 280 CALORIES AND 13 GRAMS OF FAT ONLY A FEW OF THE COCOA BRANDS ARE DOING MEDIA ADVERTISING GHIRARDELLI HAS LAUNCHED A LIMITED PRINT AND RADIO CAMPAIGN WITH THE SLOGAN DRINK A CHOCOLATE BAR NESTLE'S TV COMMERCIALS SHOW WOMEN RELAXING WITH A CUP OF ITS EUROPEAN STYLE HOT CHOCOLATES WOMEN AND BUSINESSPEOPLE WOULD BE INTERESTED IN THE COCOAS AS AN AFFORDABLE DAILY LUXURY SAYS ANDREA COOK A NESTLE SPOKESWOMAN BUT MOST COCOA MARKETERS OPT FOR INSTORE PROMOTIONS COUPONS AND AISLE DISPLAYS TO ATTRACT CUSTOMERS NESTLE SWISS MISS AND LAND O'LAKES SELL INDIVIDUAL TRIALSIZED PACKETS OF THE COCOAS ENABLING CUSTOMERS TO SAMPLE THE UNUSUAL FLAVORS WITHOUT COMMITTING TO A MORE EXPENSIVE TIN PEOPLE TRUST THINGS THEY CAN TOUCH SAYS MR PIRKO OF BEVMARK THEY HAVE TO SAMPLE FIRST THEY MAY BE ENTICED WITH ADVERTISING BUT TASTING IS BELIEVING 9401110075 940111 CREDIT MARKETS EASTMAN CHEMICAL CO SELLS 1 BILLION IN ISSUES TREASURY LONG BOND FALLS AFTER FRIDAY'S SURGE BY LAUREN YOUNG AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MORE THAN 2 BILLION OF NEW CORPORATE BONDS WERE PRICED YESTERDAY AS COMPANIES RETURNED IN FORCE TO THE CREDIT MARKETS AFTER A HOLIDAY HIATUS THE LARGEST ISSUE OF THE DAY CAME FROM EASTMAN CHEMICAL CO RECENTLY SPUN OFF BY EASTMAN KODAK CO THE COMPANY SOLD 1 BILLION OF 10YEAR NOTES AND 30YEAR BONDS BOTH NONCALLABLE INVESTORS DEMAND WAS STRONG ENOUGH TO INCREASE THE SIZE OF THE DEAL FROM 600 MILLION MEANWHILE TREASURY ISSUES COOLED OFF AFTER RISING MORE THAN 1 1/2 POINTS ON FRIDAY IN RESPONSE TO A WEAKERTHANEXPECTED EMPLOYMENT REPORT THE BENCHMARK 30YEAR TREASURY BOND DROPPED A BIT MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 100 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 624 FROM 622 ON FRIDAY HYDROQUEBEC A CANADIAN PUBLICSECTOR POWER GENERATOR PRICED A 1 BILLION CANADIAN GLOBAL BOND OFFERING KICKING OFF WHAT IS EXPECTED TO BE AN ACTIVE YEAR IN NONDOLLARDENOMINATED GLOBAL BONDS SYNDICATE OFFICIALS SAID IN THE INVESTMENTGRADE MARKET PRICES WERE MIXED IN MODERATE TRADING AS THEY FOLLOWED TREASURYS AND SPREADS REMAINED CONSTANT EASTMAN CHEMICAL A KINGSPORT TENN CHEMICAL COMPANY SOLD 500 MILLION OF 10YEAR NOTES AND 500 MILLION OF 30YEAR DEBENTURES AFTER INCREASING THE SIZE OF THE DEAL IN REACTION TO OVERWHELMING INVESTOR DEMAND SAID LARRY MUNSEY EASTMAN CHEMICAL'S TREASURER WE'RE A NEW NAME AND INVESTORS ARE LOOKING FOR NEW NAMES HE SAID THE DEAL WAS REPORTED TO BE HEAVILY OVERSUBSCRIBED EASTMAN CHEMICAL WAS SPUN OFF FROM EASTMAN KODAK IN LATE 1993 AND THE PROCEEDS FROM MONDAY'S OFFERING WILL PAY OFF 18 BILLION OF BANK DEBT INCURRED FROM THE SPINOFF THE 10YEAR NOTES WERE PRICED AT 99897 TO YIELD 6389 AND THE 30YEAR DEBENTURES WERE PRICED AT 98974 TO YIELD 7335 BOTH PARTS ARE NONCALLABLE AND RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP MIKE KNEBEL A PORTFOLIO MANAGER AT SAFECO INSURANCE CO IN SEATTLE WASH SAID THE LACK OF NEW ISSUES THIS YEAR AND A STRONG DEMAND FOR HIGHYIELDING PAPER MADE THE EASTMAN'S OFFERING ATTRACTIVE TO INVESTORS INTEREST IN THE DEAL CROSSED ALL SECTORS OF THE INSTITUTIONAL MARKETPLACE SAID KEVIN KELLY HEAD OF NEW ISSUANCE AT GOLDMAN SACHS & CO WHICH WAS LEAD MANAGER FOR THE OFFERING INVESTORS INCLUDED INSURANCE COMPANIES INSTITUTIONAL INVESTMENT ADVISORS SOME MUTUAL FUNDS AND STATE PENSION FUNDS HE SAID THE MARKET HAS BEEN DISAPPOINTED TO DATE ABOUT THE AMOUNT OF SUPPLY IT HAS SEEN MR KELLY SAID THE TIMING OF THE OFFER WAS PERFECT HE ADDED EASTMAN'S DEBT PAPER WILL BECOME A MUSEUM PIECE FOR MOST INVESTORS PREDICTED MR KNEBEL OF SAFECO I DON'T THINK THE MAJORITY OF INVESTORS ARE IN THIS DEAL FOR A QUICK PROFIT MOST OF THE PAPER WILL BE PUT AWAY BY INVESTORS WHO BELIEVE THE VALUE OF THE PAPER WILL INCREASE AS THE COMPANY'S CREDIT RATING IMPROVES HE SAID MR KELLY OF GOLDMAN NOTED THAT WHILE SOME INVESTORS WILL STORE DEBT IN THEIR PORTFOLIOS AN OFFERING OF EASTMAN'S SIZE GUARANTEES LIQUIDITY NOT EVERY INVESTOR CLAMORED TO BE IN THE DEAL HOWEVER ONE INSTITUTIONAL INVESTOR DECIDED AGAINST BUYING EASTMAN'S PAPER BECAUSE THE PRICE TALK WAS A BIT TOO RICH FOR THE RATING THE PAPER IN HIS VIEW SHOULD HAVE BEEN PRICED WITH A YIELD THAT WAS 020 TO 025 PERCENTAGE POINT HIGHER MEANWHILE EPIC HEALTHCARE GROUP INC'S 10 7/8 COUPON SENIOR SUBORDINATED NOTES MATURING IN 2003 HAVE RISEN FOUR POINTS SINCE THURSDAY OR 40 FOR A BOND WITH 1000 FACE VALUE TO 117 THE YIELD DROPPED TO 823 FROM 88 THE BONDS MOVED IN REACTION TO NEWS THAT HEALTHCARE TRUST INC IS NEGOTIATING TO ACQUIRE EPIC HOLDINGS INC THE PARENT OF EPIC HEALTHCARE GROUP WALL STREET PLAYERS FOUND THAT TREASURY PRICES HAD FALLEN IN OVERNIGHT TRADING AS OVERSEAS INVESTORS BOOKED PROFITS A LARGE JAPANESE ACCOUNT IN PARTICULAR WAS SAID TO BE A BIG SELLER SOME US ANALYSTS WERE SURPRISED THAT FRIDAY'S LARGE GAINS HADN'T CARRIED OVER INTO THIS WEEK THE 30YEAR BOND'S PRICE ZOOMED MORE THAN 1 1/2 POINTS FRIDAY AFTER RELEASE OF US JOBS DATA SHOWED NONFARM PAYROLL RANKS GROWING WELL BELOW EXPECTATIONS IN DECEMBER YESTERDAY THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 100 23/32 ITS YIELD WAS VIRTUALLY UNCHANGED AT 563 AS TRADING GOT UNDER WAY IN NEW YORK YESTERDAY THE PRICE OF THE 30YEAR ISSUE FELL AS MUCH AS 26/32 DRAGGING THE ENTIRE MARKET DOWN BUT THE DECLINES TEMPTED TRADERS AND INVESTORS TO STEP IN AND BUY THE LONG ISSUE IN PARTICULAR PULLING THE WHOLE MARKET BACK UP ALTHOUGH MANY INVESTORS REMAIN BULLISH ON US BONDS THEY DON'T BELIEVE THAT 1994 CAN OFFER THE SAME PERFORMANCE AS LAST YEAR SO IN ADDITION TO WHATEVER MOVES THEY MIGHT BE MAKING IN OTHER DEBT MARKETS THEY'RE APT TO MOVE MONEY INTO SHORTERDATED TREASURYS FRIDAY'S REPORT ON JOBS CAUSED THE LONG END OF THE TREASURY CURVE TO RALLY AND LIKELY STYMIED THOSE TRYING TO REALLOCATE FUNDS MICHAEL MORAN MANAGING DIRECTOR OF GOVERNMENT SECURITIES TRADING AT DONALDSON LUFKIN & JENRETTE SAID THE DECEMBER EMPLOYMENT REPORT CONVINCED MANY THAT THE FEDERAL RESERVE WOULDN'T CHANGE ITS POLICIES ANYTIME SOON BEFORE THE REPORT THERE HAD BEEN CONCERN THAT THE FED MIGHT RAISE SHORTTERM RATES THUS MAKING MONEY AND CREDIT MORE EXPENSIVE IN AN EFFORT TO CHOKE OFF ANY CHANCES INFLATION MIGHT HAVE IN THE NEW YEAR BUT SINCE THE ECONOMY'S EXPANSION STILL SEEMS MODERATE AT BEST THE FED IS SEEN AS NOT HAVING TO RAISE RATES SO SHORT RATES STILL HAVE ROOM TO MOVE LOWER TRADERS REASON AND INVESTORS WILL BE LOOKING FOR PRICE APPRECIATION IN SHORTER MATURITIES BOND INVESTORS WILL BE CLOSELY WATCHING TWO REPORTS ON INFLATION DUE OUT TOMORROW AND THURSDAY THE LABOR DEPARTMENT IS SLATED TO RELEASE THE DECEMBER PRODUCER PRICE INDEX TOMORROW AND THE CONSUMER PRICE INDEX ON THURSDAY THESE REPORTS MEASURE INFLATION PRESSURES AT THE WHOLESALE AND CONSUMER LEVEL RESPECTIVELY HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JAN 13 THE 13WEEK BILLS MATURE APRIL 14 1994 AND THE 26WEEK BILLS MATURE JULY 14 1994 THE MUNICIPAL BOND MARKET GAVE A WARM RECEPTION TO THE YEAR'S FIRST BIG OFFERING HARRIS COUNTY TEXAS'S 5953 MILLION SERIES 1994 TOLL ROAD SENIORLIEN REVENUE REFUNDING BONDS THE LEHMAN BROTHERS GROUP THAT BROUGHT THE OFFERING TO THE MARKET WAS ABLE TO LOWER YIELDS FOR A NUMBER OF THE BONDS YIELDS RANGED FROM 4 IN 1998 TO 553 IN 2021 ALL THE BONDS WERE SOLD BUYERS OF THE HARRIS COUNTY ISSUE INCLUDED BOND FUNDS AND PROPERTY AND CASUALTY FIRMS SAID STANLEY CIEMNIECKI LEHMAN'S NATIONAL UNDERWRITING MANAGER JUDGING FROM THE RESPONSE TO THE HARRIS COUNTY ISSUE YOU COULD HAVE GOOD DEMAND FOR OTHER OFFERINGS DUE TO BE PRICED THIS WEEK HE SAID THIS WEEK'S LIST WHICH INCLUDES MORE THAN 3 BILLION OF BOND ISSUES IS THE HEAVIEST IN OVER A MONTH PRICES OF MORTGAGEBACKED SECURITIES FINISHED MODESTLY HIGHER BUYING REMAINED STEADY FOR CURRENTCOUPON SECURITIES MOSTLY BY DEALERS SEEKING COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT CONDUITS REMIC ISSUANCE TOTALED MORE THAN 10 BILLION IN THE FIRST WEEK OF THE YEAR BUYERS YESTERDAY INCLUDED MORTGAGE BANKERS WHO WERE UNABLE TO DELIVER MORTGAGES PROMISED TO WALL STREET ONE TRADER SAID BUT PRICES OF MORTGAGES WERE UNDER SOME PRESSURE AS THE TREASURY MARKET RECOVERED FROM EARLIER SELLING GENE COLTER CONTRIBUTED TO THIS ARTICLE 9401110074 940111 PHILLIPS PETROLEUM EXPENDITURES BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SAID ITS BOARD APPROVED 119 BILLION IN CAPITAL PROJECTS THIS YEAR ESSENTIALLY THE SAME AMOUNT AS YEAREARLIER SPENDING THE OIL COMPANY SAID FUNDS FOR ITS CAPITAL BUDGET WILL BE PROVIDED BY CASH GENERATED FROM CONTINUING OPERATIONS DISPOSITION OF ASSETS AND FINANCING PHILLIPS SAID THE EXPENDITURES WOULD BE TARGETED TO MEET SAFETY AND ENVIRONMENTAL NEEDS TO REPLACE OIL AND NATURAL GAS RESERVES TO INCREASE NATURAL LIQUEFIED GAS FLOWS AND TO IMPROVE SUCH OPERATIONS AS PETROLEUM REFINING AND MARKETING 9401110073 940111 GRAPEFRUIT IS HIS LIFE AND FOR DR HENSZ A VERY SWEET ONE TEXAS CITRUS GENETICIST DOES WONDERS FOR UNLOVED FRUIT AND FOR STATE'S ORCHARDS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL WESLACO TEXAS IF ONLY GOD CAN MAKE A TREE RICHARD HENSZ IS CLOSE COMPETITION IN THE GRAPEFRUIT CATEGORY IN HIS 60ACRE EDEN DR HENSZ A CITRUS GENETICIST PLUCKS ONE OF THE FAT HANGING FRUITS OF HIS LIFE'S WORK A SUCCULENT RIO RED ACTUALLY THIS PARTICULAR FREAK GRAPEFRUIT IS YELLOW ON THE OUTSIDE EXCEPT FOR ONE PINK CRESCENTSHAPED SECTION SO NEATLY SHADED THAT IT LOOKS AS IF THE COLOR WERE DRAWN ON THE PEEL HE UNFOLDS A LONG POCKETKNIFE TO SLICE INTO HIS CREATION I FIGURED IF NATURE CAN MAKE A MUTATION WHY NOT MAKE A MUTATION OURSELVES SAYS DR HENSZ THE DIRECTOR OF TEXAS A&M UNIVERSITY'S KINGSVILLE CITRUS CENTER HERE NEAR THE MEXICAN BORDER THE TALL BESPECTACLED DR HENSZ WHO IS 64 HAS LONG BEEN TRYING TO PERFECT A GRAPEFRUIT THAT PEOPLE TRULY LIKE THE COMMON HARDTOPEEL SEEDY SOUR FRUIT THAT SQUIRTS EYESTINGING SPRAY AT THE TOUCH OF A SPOON IS TOO DAUNTING FOR MANY PEOPLE TO BOTHER WITH HE SAYS IT WASN'T EXACTLY HIS INTENTION TO GRAB UP THIS SWORD AND SLAY THE GRAPEFRUIT DRAGON BUT I DO HAVE A THING FOR IT GRAPEFRUIT IS DR HENSZ'S PASSION WHILE TO MANY IT IS STILL MAINLY THE OBJECT OF FAD DIETS AND WHAT JAMES CAGNEY PUSHED IN MAE CLARKE'S FACE IN THE 1931 MOVIE THE PUBLIC ENEMY BUT DR HENSZ'S SWEETER AND BRIGHTER VARIETIES ACTUALLY DO HAVE PEOPLE LIKING THE STUFF THEY ARE SEEDLESS IN THE TECHNICAL SENSE THAT THEY CONTAIN NO MORE THAN NINE SEEDS THEY ARE THINSKINNED THE RIO RED AND ITS COUSIN THE STAR RUBY HAVE BEEN PLANTED ON THOUSANDS OF ACRES OF THE RIO GRANDE VALLEY WHERE ABOUT 1500 GROWERS BENEFIT FROM DR HENSZ'S RESEARCH TREASURY SECRETARY LLOYD BENTSEN'S BROTHER DON FOR EXAMPLE JUST PLANTED 700 ACRES OF RIO REDS NEAR MISSION TEXAS THIS WINTER'S GRAPEFRUIT CROP WILL BE THE FIRST OF ANY SIGNIFICANCE IN TEXAS SINCE A FREEZE KILLED OFF MOST TREES HERE IN 1989 WHAT'S MORE THE TEXAS CROP FULLY 80 OF IT DEVELOPED BY DR HENSZ IS EXPECTED TO SELL AT A PREMIUM OVER ITS BETTERKNOWN FLORIDA AND CALIFORNIA COMPETITION THAT IS MAINLY BECAUSE OF DR HENSZ'S SECRET INGREDIENT SUGAR BY REARRANGING GRAPEFRUIT GENES HE HAS PLAYED DOWN THE ACID TASTE PEOPLE OBJECT TO THE REDNESS OF THE FRUIT APPEALS TO CONSUMERS WHO IN SURVEYS MISTAKENLY ASSOCIATE IT WITH SWEETNESS IN REALITY TASTE HAS MORE TO DO WITH GROWING CONDITIONS DR HENSZ'S EXPERTISE IS IN DEMAND ALL OVER THE GLOBE THE WORLD BANK ASKED HIM TO GO TO VALENCIA FOR 18 MONTHS AS A CONDITION OF A CITRUSDEVELOPMENT LOAN TO THE SPANISH GOVERNMENT HE LED AN AGRICULTURE DEPARTMENT MISSION TO CHINA TO ADVISE CITRUS GROWERS THERE HIS PAPERS HAVE BEEN READ ON TELEVISION IN JAPAN BESIDES DEVELOPING BETTER GRAPEFRUIT HE HAS HELPED GROWERS SAVE TREES FROM PLAGUES OF BLACK FLIES A MAJOR THREAT TO CITRUS BY SETTING LOOSE A PARASITE THAT KILLS THE INSECT PREDATORS AFTER THE 1983 HUNDREDYEAR FREEZE OF WHICH THERE HAVE BEEN THREE SINCE 1962 HE HELPED SET UP THE NATION'S FIRST TREEINSURANCE PROGRAM FOR CITRUS GROWERS RADIO FREEZEALERTS WERE BROADCAST LIVE FROM DR HENSZ'S LAB UNTIL CHARLIE RANKIN'S DAILY FARM RADIO SHOW ON STATION KURV IN EDINBURG WAS REPLACED BY RUSH LIMBAUGH CLAY EVERHARD A GRAPEFRUIT FARMER FENDS OFF PUSHY HERBICIDE SALESMEN BY TELLING THEM IF DR HENSZ TRIED IT AND SAID IT WORKED I MIGHT BE TEMPTED THE OBJECT OF MR HENSZ'S AFFECTIONS OTHERWISE KNOWN AS CITRUS PARADISI WAS FIRST FOUND IN BARBADOS IN 1750 THE TERM GRAPEFRUIT WAS COINED IN 1814 BY JAMAICAN FARMERS BECAUSE THE FRUIT GROWS IN CLUSTERS IT WAS BROUGHT TO TAMPA BY FRENCH SETTLERS IN THE 1820S THUS PLANTING THE SEEDS FOR THE COLOSSAL FLORIDA CITRUS INDUSTRY AND A SMALLER ONE IN TEXAS IN THE EARLY PART OF THIS CENTURY HERE IN THE RIO GRANDE VALLEY THE COMBINATION OF A RICH ALKALINE BASE WITH A SANDY LOAM IN THE SOIL TENDS TO MAKE TEXAS GRAPEFRUIT SWEETER AND RUDDIER THAN ITS FLORIDA AND CALIFORNIA COMPETITORS RED GRAPEFRUIT WERE FIRST SPOTTED HERE DURING THE 1920S AND THEY HAVE SINCE BEEN TRANSPLANTED TO OTHER PARTS OF THE WORLD DR HENSZ WHO EATS AT LEAST ONE GRAPEFRUIT EVERY DAY LEARNED SOME HARD LESSONS AS A YOUNG MAN WHEN HIS FATHER A GROWER LOST HIS CROP IN 1949 IN THE VALLEY'S FIRST FREEZE OF THE CENTURY IN 1951 ANOTHER FREEZE FORCED ENOUGH GROWERS OUT OF THE BUSINESS THAT CITRUS ACREAGE PLUMMETED TO 20000 FROM 102000 IT IS NOW BACK UP TO ABOUT 27000 DR HENSZ BLENDED HIS LOVE OF SCIENCE AND AGRICULTURE BY STUDYING PLANT SCIENCE AT TEXAS A&M AND RECEIVED A PHD AT THE UNIVERSITY OF FLORIDA AT GAINESVILLE WITH A DISSERTATION ON THE SEXUAL INCOMPATIBILITY OF THE ORLANDO TANGELO THAT FRUIT HALF GRAPEFRUIT HALF TANGERINE DOESN'T SELFPOLLINATE AND THUS TENDS TO DIE OUT DR HENSZ SAYS HE SOLVED THE MYSTERY BUT NOT THE PROBLEM BY 1963 WHEN HE RETURNED TO THE VALLEY AS DIRECTOR OF THE CITRUS CENTER HE WAS ALREADY MAKING A NAME FOR HIMSELF IN CITRUS CIRCLES HE HAD SENT A PACKAGE OF 40000 SEEDS AND CUTTINGS FROM REDGRAPEFRUIT TREES TO THE BROOKHAVEN LABORATORY IN NEW YORK SAMPLES WERE BOMBARDED WITH RADIATION SOMETHING THAT HAD BEEN DONE WITH GRAIN BUT NOT WITH CITRUS FOR THREE TO 15 HOURS AND THE RESULTING BUDS WERE GRAFTED MOST SUCCESSFULLY ONTO SOURORANGE ROOT STOCK BACK IN TEXAS AFTER SEVERAL YEARS A PARTICULAR STRAIN STARTED BEARING TASTIER REDDER FRUIT AND IN 1970 HE RELEASED THE STAR RUBY TO VALLEY GROWERS IN 1984 DR HENSZ PUT OUT THE RIO RED A HARDIER BLOOMER WE'VE GOT 2 1/2YEAROLD TREES PRODUCING 17 TONS AN ACRE SAYS ALLAN BUD SHIVERS JR THE SON OF THE FORMER TEXAS GOVERNOR WHOSE FAMILY OWNS BIG CITRUS ACREAGE IN THE VALLEY TIME WAS A NEW PLANTING TOOK THREE TO FIVE YEARS TO BEAR FRUIT DR HENSZ GOT NO ROYALTIES FROM THE VARIETIES HE CREATED AS AN EMPLOYEE OF THE UNIVERSITY JUST ACCOLADES HIS RED GRAPEFRUIT WON THE CHEFS IN AMERICA GOLD MEDAL AWARD IN 1993 THE RESULT OF A TASTE TEST AMONG WHITE TABLECLOTH CHEFS HE ONCE PRESENTED HIS FRUIT TO A BEAUTY QUEEN DUBBED THE DUCHESS OF RIO RED WHO WAS WEARING A PLAUSIBLE MUSLINLINED GOWN MADE OF CRUSHED DEHYDRATED GRAPEFRUIT PULP MUCH MORE COMFORTABLE TO WEAR THEY SAY THAN THE CABBAGE QUEEN'S DRESS WHICH MUST BE REFRIGERATED OVERNIGHT HE HIMSELF WAS NAMED THE RIO GRANDE VALLEY'S CITRUS KING THREE YEARS AGO LAST YEAR TEXAS DESIGNATED RED GRAPEFRUIT THE STATE FRUIT YET ANOTHER CROWNING ACHIEVEMENT FOR DR HENSZ DR HENSZ ALAS IS RETIRING AT THE END OF THIS MONTH AND TEXAS A&M HAS BEGUN A WORLDWIDE SEARCH FOR A SUCCESSOR WITHOUT EXPECTING TO FIND ONE SOON HE IS MOVING BACK TO THE FAMILY SPREAD 15 MILES AWAY IN HARLINGEN WHERE HE PLANS TO BUILD A HOUSE IN THE MIDDLE OF A GRAPEFRUIT ORCHARD 9401110072 940111 BARCLAYS TO CUT ADDITIONAL JOBS LONDON BARCLAYS PLC BRITAIN'S LARGEST BANK CONFIRMED IT WILL CUT A FURTHER 3000 JOBS OVER THE NEXT TWO YEARS TO PURSUE ITS LONGTERM STRATEGY OF REDUCING LABOR COSTS AND IMPROVING PROFITABILITY THE LATEST CUTS WILL REDUCE OVERALL EMPLOYMENT TO 63500 AT THE END OF 1995 A SPOKESWOMAN SAID THE CUTS COME ON TOP OF REDUCTIONS OF 18000 POSTS OVER A FIVEYEAR PERIOD BEGINNING IN 1991 SHE SAID THE BANK HAS ALREADY ELIMINATED 16000 OF THOSE JOBS BARCLAYS EMPLOYED 68500 PEOPLE IN THE UNITED KINGDOM AT THE END OF 1993 COMPARED WITH 84500 AT THE END OF 1990 9401110071 940111 MARKETING & MEDIA SEARS TO EXPAND IN SPECIALTY CATALOGS THROUGH VENTURE WITH HANOVER DIRECT BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A YEAR AFTER ANNOUNCING PLANS TO CLOSE ITS FAMOUS BIG BOOK CATALOG OPERATION SEARS ROEBUCK & CO IS EXPANDING ITS PRESENCE IN SPECIALTY CATALOGS THE NATION'S NO 3 RETAILER SAID YESTERDAY THAT IT WILL BEGIN MAILING THREE NARROWLY FOCUSED CATALOGS THIS MONTH AND IS TESTING SIX OTHERS THE THREE NEW CATALOGS ARE A PRODUCT OF SEARS'S RECENT JOINT VENTURE WITH HANOVER DIRECT INC A WEEHAWKEN NJ CATALOG CONCERN IN THE VENTURE SEARS IS LENDING ITS NAME ITS FORMER CATALOG'S CUSTOMER LIST AND DATA ABOUT CUSTOMERS' BUYING HABITS HANOVER IS RESPONSIBLE FOR TAKING CUSTOMER ORDERS SOURCING AND SHIPPING THE GOODS AND MAINTAINING INVENTORY UNDER THE AGREEMENT WITH HANOVER SEARS MAY PURCHASE AS MANY AS SEVEN MILLION HANOVER COMMON SHARES OR ABOUT 10 OF ITS CURRENT SHARES OUTSTANDING IN 1999 FOR 1057 A SHARE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY HANOVER SHARES CLOSED AT 7375 UP 75 CENTS OR 11 SEARS SHARES CLOSED AT 53375 UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE NEW CATALOGS SEARS WILL MAIL ARE SHOW PLACE WHICH OFFERS BED AND BATHROOM MERCHANDISE GREAT KITCHENS WHICH SELLS KITCHEN ACCESSORIES AND BEAUTIFUL STYLE AN EVENINGWEAR CATALOG FOR LARGER WOMEN SEARS DECLINED TO REVEAL ITS SALES GOALS OF THE SIX CATALOGS IN TEST TWO ARE BEING DONE WITH HANOVER THE REST ARE BEING DONE WITH OTHER COMPANIES SEARS SAID THE NEW CATALOGS CARRY MANY OF THE SAME PRODUCTS THAT HANOVER ALREADY SELLS HANOVER PUBLISHES AND DISTRIBUTES 14 CATALOGS THAT OFFER APPAREL HOME FURNISHINGS AND GIFTS SOME OF THE CATALOGS ARE HANOVER HOUSE GUMP'S AND THE COMPANY STORE HANOVER COMPLETED A BROAD FINANCIAL RESTRUCTURING IN 1992 CHANGING ITS NAME FROM HORN & HARDART CO AND HAS PURCHASED THREE SMALLER CATALOG COMPANIES IN THE LAST SIX MONTHS THE RESTRUCTURING AND THE NEW SEARS BUSINESS WILL PUT THEM IN A POSITION TO GROW ALONG WITH SEARS SAID JANET MANGANO AN ANALYST FOR BURNHAM SECURITIES INC THE NEW ARRANGEMENT IS LIKELY TO HELP HANOVER MORE THAN SEARS MS MANGANO ADDED THE DOLLAR VOLUME WILL BE SMALL FOR SEARS BUT SIGNIFICANT FOR HANOVER INDUSTRY WATCHERS SAID THE ARRANGEMENT ALLOWS SEARS TO WRING REVENUE FROM ITS 24 MILLIONNAME CUSTOMER LIST WHICH IT KEPT AFTER CLOSING ITS UNPROFITABLE 97YEAR OLD GENERALMERCHANDISE CATALOG OPERATION LAST MAY THE NEW CATALOGS ALSO OFFER SEARS THE OPPORTUNITY TO TAKE ADVANTAGE OF CONSUMERS' GROWING PREFERENCE FOR SHOPPING AT HOME CATALOG SALES ARE GROWING FASTER THAN STORE RETAIL SALES WE'RE GOING TO CONTINUE TO SERVE THE SHOPATHOME CUSTOMER SAID VACHEL PENNEBAKER SEARS'S VICE PRESIDENT FOR DIRECT MARKETING BUT HE SAID SEARS ISN'T CONSIDERING REBUILDING ITS CATALOG OPERATIONS THE COMPANY DOES HOWEVER PUBLISH TWO SMALL CATALOGS OFFERING TOOLS AND HOME HEALTHCARE SUPPLIES 9401110070 940111 IPSCO HIRES CONTRACTOR FOR MILL REGINA SASKATCHEWAN IPSCO INC SAID IT AWARDED A CONTRACT TO MANNESMANN DEMAG CORP OF GERMANY TO SUPPLY EQUIPMENT AND CONSTRUCT BUILDINGS FOR IPSCO'S PLANNED STEEL MINIMILL TERMS WEREN'T DISCLOSED BUT MANNESMANN WILL HANDLE THE BULK OF THE 360 MILLION PROJECT AN IPSCO SPOKESWOMAN SAID IPSCO ANNOUNCED PLANS LAST YEAR TO BUILD A MINIMILL IN THE US BUT A SITE HASN'T BEEN CHOSEN THE STEEL CONCERN ALSO SAID IT RECEIVED AN ORDER FROM INTERPROVINCIAL PIPE LINE INC OF EDMONTON ALBERTA FOR 43000 TONS OF PIPE TERMS WEREN'T DISCLOSED 9401110069 940111 TECHNOLOGY BRIEF WORDPERFECT CORP PC USERS TO BE CHARGED FEE FOR HELP OVER TELEPHONE WORDPERFECT CORP THE LONGTIME LEADER IN PROVIDING FREE TELEPHONE SUPPORT FOR BUYERS OF ITS PERSONALCOMPUTER SOFTWARE HAS DECIDED TO START CHARGING FOR THE SERVICE THE MOVE BY WORDPERFECT A CLOSELY HELD OREM UTAH MAKER OF WORDPROCESSING AND OTHER PROGRAMS REFLECTS A GROWING DRIVE BY MAKERS OF PC SOFTWARE TO RECOUP REVENUES THROUGH SERVICES AS PROFIT MARGINS TIGHTEN BECAUSE OF LOWER PRICES MICROSOFT CORP WORDPERFECT'S CHIEF RIVAL IN WORDPROCESSING SAID IT WILL CONTINUE TO OFFER FREE TELEPHONE ADVICE TO BUYERS OF ITS APPLICATIONS HOWEVER MICROSOFT'S CUSTOMERS MUST PAY THE TELEPHONE CHARGES FOR SERVICE WHILE WORDPERFECT WILL CONTINUE TO PROVIDE TOLLFREE NUMBERS FOR ITS CUSTOMERS WORDPERFECT SAID IT WILL OFFER DETAILS ON SUPPORT PRICING LATER THIS WEEK 9401110068 940111 ADVERTISING TECHNOSAVVIES ARE NEW TARGET OF ADVERTISERS BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL IN ADDITION TO BABY BOOMERS DINKS EMPTY NESTERS AND GENERATION XERS MADISON AVENUE HAS ISOLATED A NEW CONSUMER SPECIES TO BOMBARD WITH ADVERTISING TECHNOSAVVIES OR TECHNOLOGYSAVVY CONSUMERS THE NAME WAS COINED BY WPP GROUP'S OGILVY & MATHER DIRECT TO DESCRIBE THE ROUGHLY 30 MILLION ELECTRONICALLY ADVANCED CONSUMERS IN ITS DATABASE THE AVERAGE TECHNOSAVVY IS 42 YEARS OLD MARRIED AND LIVING IN A SUBURB OF LOS ANGELES NEW YORK OR SAN JOSE FORTYEIGHT PERCENT OF TECHNOSAVVIES USE THEIR COMPUTER EVERY DAY 54 EARN MORE THAN 100000 A YEAR WHAT WELLHEELED URBAN PROFESSIONALS WITH THEIR IMPORTED VODKAS AND DESIGNER LABELS DID FOR ADVERTISING IN THE 1980S TECHNOSAVVIES WILL DO IN THE NEXT DECADE MADISON AVENUE PREDICTS A DECADE AGO ADS FOR ALL KINDS OF PRODUCTS FLATTERED YUPPIES BY REFLECTING AN IMAGECONSCIOUS AND FREESPENDING LIFESTYLE TECHNOSAVVIES COULD BE AS SIGNIFICANT IN THE 1990S SO AGENCIES ARE WARNING CLIENTS TO GET TO KNOW THEM NOW ELECTRONICALLY ADVANCED CONSUMERS ARE VERY UPSCALE AND FROM A CONSUMERMARKETING POINT OF VIEW INNOVATORS SAYS RON PULLEM SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF MCCANN INTERACTIVE A UNIT OF INTERPUBLIC GROUP'S MCCANNERICKSON TECHNOSAVVIES NOT ONLY GET NEW ADS ONLINE BUT ARE ALSO EXCELLENT TARGETS FOR OTHER FORMS OF INTERACTIVE ADVERTISING SUCH AS DIRECT MAIL AND OUTOFHOME ELECTRONIC KIOSKS ADVERTISERS SAY TECHNOSAVVIES IT SEEMS AREN'T JUST AFFLUENT AND WELL EDUCATED THEY'RE ALSO REMARKABLY EASY TO FIND TIME WARNER'S BOOKOFTHEMONTH CLUB FOR EXAMPLE SIGNED UP LATE LAST YEAR TO MAKE ITS FAMILIAR FOUR BOOKS FOR FOUR BUCKS MEMBERSHIP PITCH TO THE 16 MILLION SUBSCRIBERS CLAIMED BY H&R BLOCK'S COMPUSERVE NETWORK THE NUMBERS AREN'T BIG BUT THE DEMOGRAPHICS ARE VERY ATTRACTIVE SAYS A CLUB SPOKESWOMAN YOU'RE TALKING ABOUT HIGHINCOME BOOK BUYERS AND BOOK READERS OGILVY SAYS TECHNOSAVVIES FALL INTO THREE SUBGROUPS THE PERPETUAL MOTION CONSUMER IS A BUSINESS EXECUTIVE WHOSE ACTIVITIES REVOLVE AROUND THE COMPUTER AND TRAVEL THIS CONSUMER IS TYPICALLY MALE MARRIED AND AROUND 42 YEARS OLD AND ALWAYS TRAVELS WITH A COMPUTER NOTEBOOK AND A MOBILE PHONE THEN THERE ARE NETWORKED CONSUMERS WHO FREQUENTLY WORK IN TECHNICAL FIELDS SUCH AS COMPUTER PROGRAMMING ALSO MOSTLY MEN THESE CONSUMERS ARE GENERALLY IN THEIR EARLY 30S THEY ARE THE SOCALLED EARLY ADOPTERS OF NEW GADGETS LIKE THE APPLE COMPUTER NEWTON MESSAGEPAD OR THE 3DO VIDEOGAME SYSTEM AND THEY SPEND MUCH OF THEIR LEISURE TIME ONLINE FINALLY THERE ARE CONSUMERS WITH HOME OFFICES THEY ARE AS LIKELY TO BE WOMEN AS MEN AND THEY ARE EITHER SELFEMPLOYED ENTREPRENEURS OR SATELLITE EMPLOYEES OF A CORPORATION THEY ARE USUALLY MARRIED AND AVERAGE ABOUT 42 YEARS IN AGE OGILVY WHOSE CLIENTS INCLUDE AMERICAN EXPRESS CO CIBAGEIGY PHARMACEUTICALS AND MICROSOFT CORP COMPILES THE NAMES OF TECHNOSAVVIES FROM LISTS OF PURCHASERS OF PERSONAL COMPUTERS AND SOFTWARE USERS OF CDROMS AND COMPUTER NOTEBOOKS SUBSCRIBERS TO ONLINE INFORMATION NETWORKS AND COMPUTER MAGAZINES AND MEMBERS OF COMPUTER ASSOCIATIONS THEN IT MATCHES ITS NAMES WITH THOSE IN ITS CLIENTS' DATABASES THE OVERLAP IS PROFOUND SAYS MARTIN NISENHOLTZ SENIOR VICE PRESIDENT AND DIRECTOR OF OGILVY & MATHER DIRECT FOR HIGHEND PRODUCTS IN SOME CASES IT CAN BE 50 AND IN BUSINESSTOBUSINESS AREAS IT CAN BE MORE LIKE 90 OGILVY'S ANALYSIS IS A REFINEMENT OF REAMS OF DATA THAT RESEARCHERS SUCH AS LINK RESOURCES NEW YORK AND THE YANKEE GROUP BOSTON HAVE BEEN COLLECTING ON AMERICANS' ELECTRONIC COMMUNICATIONS INFORMATION AND ENTERTAINMENT HABITS IN ASSESSING THE MARKET FOR INTERACTIVE TELEVISION THE YANKEE GROUP HAS IDENTIFIED 154 MILLION TECHNOLOGICALLY ADVANCED FAMILIES OR TAFS WHO MAKE UP 16 OF THE 964 MILLION US AND CANADIAN HOUSEHOLDS THE COMPANY CLASSIFIES AN ADDITIONAL 308 MILLION HOUSEHOLDS AS NEARTAFS THESE HOUSEHOLDS HAVE THE HIGHEST OWNERSHIP AND USAGE RATES OF 35 TECHNOLOGYBASED PRODUCTS AND SERVICES IN ADDITION TO HIGHERTHANAVERAGE HOUSEHOLD INCOME THEY ARE ALSO LIKELY TO HAVE CHILDREN CHILDREN PULL PRODUCTS INTO THE HOME AFTER EXPOSURE TO THEM AT SCHOOL NOTES PETER HAMPTON DIRECTOR OF CONSUMER COMMUNICATIONS AT THE YANKEE GROUP THE 502 MILLION NONTAFS ARE TYPICALLY OLDER AND POORER THAN ELECTRONICALLY ADVANCED FAMILIES AND MUCH LESS LIKELY TO HAVE CHILDREN LIVING AT HOME MR NISENHOLTZ LIKENS THE TECHNOSAVVIES TO THE FIRST CONSUMERS TO BUY AN AUTOMOBILE AS A MEANS OF TRANSPORTATION RATHER THAN A HIGHTECH HOBBY BY 2003 GREAT SEGMENTS OF THE POPULATION WILL HAVE NETWORKED DIGITAL DEVICES MR NISENHOLTZ SAID THE PURPOSE OF ADVERTISING TO THE TECHNOSAVVY ISN'T TO HAMMER A MESSAGE INTO HIS HEAD IT'S TO PROVIDE HIM WITH A SERVICE SUCH SERVICES ARE LIKELY TO COME IN THE CATEGORIES IN WHICH TIMEPRESSED TECHNOSAVVIES HAVE THE GREATEST NEEDS TRAVEL COMPUTERS AND SOFTWARE ENTERTAINMENT CONSUMERS FOR EXAMPLE COULD USE AN AIRLINE'S ADS TO PLAN THEIR TRAVEL ITINERARIES THESE CONSUMERS NEED TO KNOW HOW DO I USE A PIECE OF SOFTWARE HOW DO I HOOK UP MY COMPUTER IN A HOTEL ROOM HOW DO I GET FROM THE AIRPORT TO MY MEETING' MR NISENHOLTZ SAYS MICROSOFT FOR EXAMPLE OFFERS TECHNOSAVVIES MORE THAN JUST A SALES PITCH THE SOFTWARE COMPANY SPONSORS THE MICROSOFT SMALL BUSINESS CENTER ON THE AMERICA ONLINE NETWORK OFFERING SUBSCRIBERS TECHNICAL INFORMATION ACCESS TO MESSAGE BOARDS REALTIME PERSONAL ASSISTANCE AND ACCESS TO SOFTWARE TEMPLATES AND PROGRAMS ALSO INCLUDED IS INFORMATION ON BROADER TOPICS SUCH AS EXPORTING AND INCOME TAX FILINGS IT'S NOT ADVERTISING AN AMERICA ONLINE SPOKESWOMAN SAYS IT WOULDN'T FIT INTO THAT CATEGORY AT ALL THE INFORMATION HAS TO BE USEFUL RELEVANT AND MEANINGFUL AND DELIVERED IN A CREATIVE WAY SAYS PAMELA LARRICK THE MANAGING DIRECTOR OF OGILVY & MATHER DIRECT IT SOUNDS TRITE BUT THE MEDIUM BECOMES THE MESSAGE THE MESSAGE BECOMES A REAL SERVICE ACQUISITION EURO RSCG THE PARIS AGENCY HOLDING COMPANY ACQUIRED THE HADLEY GROUP A STAMFORD CONN PROMOTION AGENCY VICTOR IMBIMBO HADLEY GROUP CHIEF EXECUTIVE AND PRESIDENT DECLINED TO DISCUSS THE TERMS EURO RSCG WILL MERGE THE COMPANY WITH NEW YORK PROMOTION COMPANY COMART CREATING A 30 MILLION AGENCY WITH CLIENTS INCLUDING PHILIP MORRIS NUTRASWEET E&J GALLO WINERY AND BORDEN WHO'S NEWS KPMG PEAT MARWICK NAMED MARK LINDER A 40YEAROLD SENIOR VICE PRESIDENT AND EXECUTIVE GROUP DIRECTOR AT WPP GROUP'S OGILVY & MATHER TO THE POST OF NATIONAL MARKETING DIRECTOR A NEW POSITION 9401110067 940111 BUSINESS BRIEF TIME WARNER INC SHOPPERVISION SERVICE TO USE DRUGSTORE GROCERY PRODUCTS TIME WARNER CABLE AND SHOPPERVISION INC SAID THEY WOULD JOINTLY PROVIDE AN INTERACTIVE SUPERMARKET AND DRUGSTORE HOMESHOPPING NETWORK TO SUBSCRIBERS OF ITS FULL SERVICE NETWORK ABOUT TO BEGIN SERVICE IN ORLANDO FLA THE SHOPPING SERVICE SCHEDULED TO BEGIN IN THE FALL WOULD ALLOW SUBSCRIBERS TO VIEW SHELF SPACE AND DISPLAYS AT DRUGSTORES AND SUPERMARKETS ON SPECIALLY EQUIPPED TELEVISION SETS THE PROGRAM ALSO WILL ENABLE VIEWERS TO ROTATE PRODUCTS 360 DEGREES AND VIEW THEM UP CLOSE IN ORDER TO READ DIRECTIONS OR IDENTIFY INGREDIENTS PURCHASED PRODUCTS WOULD BE DELIVERED TO CUSTOMERS' HOMES ACCORDING TO TIME WARNER CABLE A UNIT OF NEW YORKBASED TIME WARNER INC A SMALL DELIVERY CHARGE WOULD BE ADDED TO GROCERY PURCHASES BUT NOT TO DRUGSTORE ITEMS SHOPPERVISION IS BASED IN NORCROSS GA 9401110066 940111 BUSINESS BRIEF SMITHKLINE BEECHAM PLC CONSUMER BRANDS UNIT PUTS HEALTHCARE ASPECT IN NAME SMITHKLINE BEECHAM PLC SAID IT RENAMED ITS CONSUMER BRANDS UNIT AS PART OF ITS STRATEGY TO TAP FURTHER INTO THE HEALTHCARE PRODUCTS MARKET THE RENAMED UNIT TO BE CALLED SMITHKLINE BEECHAM CONSUMER HEALTHCARE WILL CONCENTRATE ON ORAL AND NUTRITIONAL HEALTHCARE PRODUCTS AND OVERTHECOUNTER MEDICINES OVER THE PAST FEW YEARS LONDONBASED SMITHKLINE HAS SOLD OFF PRODUCTS THAT DON'T DIRECTLY RELATE TO HEALTH CARE SUCH AS BRILL CREEM AND AQUA VELVA AFTERSHAVE THE PITTSBURGHBASED UNIT WILL DRAW ON ITS RELATIONSHIP TO SMITHKLINE'S PHARMACEUTICAL UNIT TO MAKE CERTAIN PRESCRIPTION MEDICINES AVAILABLE FOR OVERTHECOUNTER SALES SUCH PRODUCTS INCLUDE TAGAMET FOR GASTROINTESTINAL DISORDERS AND NICORETTE GUM TO HELP PEOPLE QUIT SMOKING FOR THE FIRST NINE MONTHS OF 1993 THE CONSUMER BRANDS DIVISION HAD 146 BILLION IN SALES WORLDWIDE 9401110065 940111 COMAIR TRAFFIC INCREASES CINCINNATI COMAIR HOLDINGS INC SAID 229374 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN DECEMBER UP 195 FROM 191910 PASSENGERS A YEAR EARLIER FOR THE MONTH REVENUE PASSENGER MILES INCREASED 376 TO 59998 FROM 43607 IN DECEMBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE 9401110064 940111 LEISURE & ARTS IN CONCERT THE SOCIALLY UNACCEPTABLE COMPOSER BY HEIDI WALESON THE TOLEDO SYMPHONY COULDN'T HAVE COME UP WITH A MORE DIABOLICAL WAY TO TORTURE CHARLES WUORINEN IN EARLY NOVEMBER THE ORCHESTRA PRESENTED A PREVIEW PERFORMANCE OF HIS BALLET SCORE THE MISSION OF VIRGIL WHICH PETER MARTINS WILL CHOREOGRAPH FOR THE NEW YORK CITY BALLET IN THE SPRING THAT PART WAS FINE BUT TOLEDO KNOWING THAT A WUORINEN SCORE WAS UNLIKELY TO PACK THE HOUSE PAIRED HIS WORK WITH HENRYK GORECKI'S SYMPHONY NO 3 THAT LONGWINDED INCANTATIONAL SURPRISE HIT ON THE BILLBOARD CHARTS AND AN OUTSTANDING EXAMPLE OF ALL MR WUORINEN HOLDS IN CONTEMPT MR WUORINEN WAS FOR HIM FAIRLY POLITE ABOUT THE JUXTAPOSITION COMMENTING THAT FANCIERS OF GORECKI'S THIRD PROBABLY AREN'T REALLY LISTENING AND JUST LIKE TO HAVE SOMETHING MOANING AND GROANING IN THE BACKGROUND AN UNRECONSTRUCTED RATIONALIST WHO GETS IRATE WHEN SCHOENBERG IS INSULTED HE LOATHES TODAY'S POPULAR COMPOSING STYLES MINIMALISM IS SIMPLEMINDED NEOROMANTICISM IS REPELLENT AND THE DEMISE OF STANDARDS IN COMPOSITION IS AN EVENT AKIN TO THE BREAKDOWN OF WESTERN CIVILIZATION HIS KIND OF MUSIC IS NOT IN FASHION NOW IF IT EVER WAS THERE'S PRACTICALLY ALWAYS A 12TONE ROW IN THE BACKGROUND OF MY PIECES SO THAT QUALIFIES ME AS A 12TONE COMPOSER AND THAT'S OF COURSE BAD YOU'RE NOT SUPPOSED TO BE THAT ANYMORE MR WUORINEN SAYS IT'S SOCIALLY UNACCEPTABLE WHAT PEOPLE DON'T REALIZE IS THAT IT WAS ALWAYS SOCIALLY UNACCEPTABLE FOR 10 MINUTES WHEN STRAVINSKY DID IT IT GOT A SOUPCON OF RESPECTABILITY THEN HE DIED AND THAT WAS THE END OF THAT THERE'S A LOT OF HISTORY THAT NEEDS TO BE CLEANED UP ONE OF THE MOST ENTERTAINING BITS OF FANTASY HISTORY IS THAT MILTON BABBITT AND I CONTROLLED THE MUSICAL WORLD IN THE 1950S I MUST HAVE BEEN VERY PRECOCIOUS TO BE CONTROLLING THE MUSICAL WORLD AT 18 MILTON ALWAYS SAYS IF ONLY HE'D KNOWN HOW POWERFUL HE WAS HE WOULD HAVE HAD A LOT MORE FUN SOCIALLY UNACCEPTABLE OR NOT MR WUORINEN HAS WRITTEN CLOSE TO 200 PIECES AND HAS NO COMPLAINTS ABOUT HIS CAREER TRAJECTORY THIS SEASON IN NEW YORK THE CHAMBER MUSIC SOCIETY OF LINCOLN CENTER PERFORMED HIS CHAMBER WORK WITH SOPRANO A WINTER'S TALE IN MARCH THE GERMANBASED RASCHER QUARTET WILL BE IN NEW YORK FOR PERFORMANCES OF TWO WUORINEN WORKS FOR SAXOPHONE QUARTET ONE OF THEM WITH ORCHESTRA AND LATER IN THE SPRING THE MARTINS BALLET IS DUE SEVERAL NEW CDS OF HIS MUSIC ARE OUT AND THE COMPOSER IS SIMULTANEOUSLY AT WORK ON A PIANO QUINTET FOR THE ARDITTI QUARTET AND URSULA OPPENS AS WELL AS A PERCUSSION QUARTET HIS RECENT PAST INCLUDED A RESIDENCY WITH THE SAN FRANCISCO SYMPHONY AND A MACARTHUR GENIUS AWARD THE MISSION OF VIRGIL FINDS MR WUORINEN IN A RELATIVELY MELLOW MOOD UNUSUALLY FOR HIM THE PIECE HAS AN EXTRAMUSICAL STIMULUS THE INFERNO SECTION OF THE DIVINE COMEDY ITS EIGHT SECTIONS FOR EASIER CHOREOGRAPHY INCLUDE PAOLO AND FRANCESCA AND MONSTERS OF THE PRIME FOR EXAMPLE BUT MR WUORINEN SAYS THEY ARE NOT INTENDED TO BE PROGRAMMATIC HE DOTH PROTEST TOO MUCH LIMBO IS FLOATING AND LIMBOESQUE AND THE MONSTERS GROWL FROM THE DEEP AS TROMBONES BASSOONS AND TUBA SATAN'S SECTION IS ALSO LOW AND JAUNTY MAYBE HELL IS KIND OF FUN THE MISSION OF VIRGIL SECTION STARTS WITH AN ENQUIRING OBOE AND DEVELOPS INTO A COMPLEX CONCERTANTE FOR SEVERAL SOLO INSTRUMENTS WITH ITS MANY EXPOSED LINES AND CROSS RHYTHMS THE PIECE STRETCHED THE TOLEDO SYMPHONY TO ITS LIMITS AND UNDER ANDREW MASSEY'S DIRECTION THE PLAYERS ROSE TO THE OCCASION AFTER THAT THE GORECKI WHICH GOT A FAR LESS POLISHED PERFORMANCE DID INDEED SOUND LIKE A LOT OF MOANING AND GROANING TO NO PARTICULAR PURPOSE A WINTER'S TALE FOR SOPRANO CLARINET HORN STRING TRIO AND PIANO WAS A FAR MORE FRUSTRATING EXERCISE FOR THE WUORINEN LISTENER THE TEXT A LONG AND EXCEEDINGLY BAROQUE POEM BY DYLAN THOMAS HAS SENSUAL LANGUAGE THAT BORDERS ON THE INCOMPREHENSIBLE AND MR WUORINEN'S MUSIC DIDN'T SO MUCH ILLUMINATE IT AS CREATE A SEPARATE UNIVERSE OF ICE AND GLITTER LITTLE GESTURES WERE TOSSED AMONG THE INSTRUMENTS AND FUSED INTO THE OCCASIONAL EXCITED INTERMEZZO BETWEEN STANZAS THE VOCAL LINE DELIVERED VALIANTLY BY PHYLLIS BRYNJULSON JOGGED ALONG AT TOP SPEED PRACTICALLY WITHOUT REFERENCE TO MEANING UNTIL IT OPENED OUT IN AN EXTENDED VOCALISE ON THE WORD FLOWERING IN THE POEM'S FINAL LINE IN HIS PURELY INSTRUMENTAL WORKS MR WUORINEN SOMETIMES ALLOWS HIMSELF A SENSE OF MYSTERY BUT GIVE HIM A POEM FILLED WITH OBSCURITY AND HE STRIPS IT CLEAN AND CLARIFIES IT SO THAT IT HAS NO MEANING AT ALL THE GESTURES WERE SO ORNAMENTED AND DETAILED THAT THE EFFECT WAS ONE OF RANDOMNESS EVEN CHAOS THIS IS HIGHLY IRONIC SINCE MR WUORINEN'S COMPOSITIONAL TECHNIQUE IS BUILT ON TIGHT CONTROL AS HE EXPLAINS IT THE INITIAL NOTE OF THE 12TONE ROW IS A CENTER NUMBERS AND SETS CREATE AN UNDERLYING ORDER ONE OF MY TWO MAIN APPROACHES IS THAT ONCE AN INITIAL SHORT SEGMENT IS WRITTEN THE ENTIRE SECTION OF WHICH IT IS A PART AND LATER THE WHOLE COMPOSITION ARE THE RESULT OF A KIND OF FEEDBACK PROCESS IN WHICH THE FIRST LITTLE BLOB OF STUFF IS TRANSFORMED INTO AN ADJACENT BLOB BY SOME SIMPLE MUSICAL PROCESS SUCH AS PITCHCLASS TRANSPOSITION OR A TIME OPERATION TO SPEAK IN MODERN LINGO THIS 'OUTPUT' IS ESSENTIALLY FED BACK INTO THE SAME KIND OR SOMETIMES EXACTLY THE SAME TRANSFORMATION TO PRODUCE MORE TECHNIQUE FOR MR WUORINEN GIVES FREEDOM RIGOR OFFERS HIM EXPRESSIVE POSSIBILITIES HE SAYS HE FOUND THE PASSIONATE LANGUAGE OF THE THOMAS POEM APPEALING YET HIS CHILLY INTERPRETATION OF THAT PASSION RESEMBLED A LITERARY EXERCISE AND ULTIMATELY WAS NO MORE ENGAGING OR STIMULATING THAN THE OVERFLOWING BATHOS OF GORECKI'S SIMPLEMINDED ONEIDEA SYMPHONY MR WUORINEN IS FRUSTRATED BY THE FACT THAT COMPOSERS TODAY CAN'T AGREE ON ANYTHING THEREBY FORESTALLING THE DEVELOPMENT OF A GREAT MUSICAL CULTURE PERHAPS THE PROBLEM IS WORSE THAN HE THINKS MS WALESON IS A MUSIC WRITER IN NEW YORK 9401110063 940111 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER CONGRESS'S LABOR AGENDA IS BROAD BUT LITTLE IS LIKELY TO PASS THE WHITE HOUSE WILL PUSH ITS 2 BILLION PLAN FOR RETRAINING LAIDOFF WORKERS LINKED TO REVAMPING UNEMPLOYMENT INSURANCE CONGRESSIONAL LEADERS SEEK TO REQUIRE WORKERSAFETY TEAMS FOR COMPANIES WITH 11 OR MORE EMPLOYEES AND TO BEEF UP PENALTIES FOR WORKPLACESAFETY VIOLATORS BUT BOTH MEASURES FACE A RECALCITRANT AND BUSY MEMBERSHIP A MINIMUMWAGE INCREASE IS LIKELY TO FALL VICTIM TO THE FOCUS ON HEALTHCARE REFORM HOUSE LEADERS HOPE TALKS WITH BUSINESS GROUPS WILL LIFT THE CHANCES FOR LEGISLATION TO INCREASE WORKERS' PRIVACY SENATE REPUBLICANS ARE EXPECTED TO AGREE TO PRESIDENT CLINTON'S NATIONAL LABOR RELATIONS BOARD SLATE IN THE NEXT MONTH OR TWO CLEARING THE CONFIRMATION OF CHAIRMANDESIGNATE WILLIAM GOULD THE FIVEMEMBER BOARD IS PARALYZED BECAUSE IT'S DOWN TO TWO MEMBERS TWO HOLDOVER BILLS FROM LAST YEAR WILL PROBABLY PASS ONE TO CREATE A NATIONAL SKILLSTANDARDS SYSTEM AND ANOTHER TO HELP HIGHSCHOOLERS GET JOBS HEALTHCARE REFORM SHOULD BODE WELL FOR NURSES AS HOSPITALS CUT BACK TO CONTROL COSTS THEY WILL HANDLE FEWER PATIENTS SO MORE CARE WILL BE PROVIDED AT LONGTERM NURSING FACILITIES HOMES AND COMMUNITYNURSING CENTERS SAYS JO A BROOKS HEAD OF PURDUE UNIVERSITY'S SCHOOL OF NURSING THE COMMUNITY CENTERS WILL BE STAFFED MAINLY BY NURSES ASSISTED BY PHARMACISTS SOCIAL WORKERS PHYSICAL THERAPISTS AND NUTRITIONISTS NURSES WILL HAVE TO BONE UP ON TECHNOLOGY SKILLS COMPUTERS AND OTHER TECHNOLOGY WILL BE USED MORE FREQUENTLY IN TREATING PATIENTS ON THE SPOT MS BROOKS SAYS SHE FORESEES EACH PATIENT BED BEING EQUIPPED WITH A LAPTOP COMPUTER SO THAT A NURSE CAN ENTER INFORMATION SUCH AS BODY TEMPERATURE AND MEDICATION AND GET ONTHESPOT READOUTS ON HOW THE PATIENT IS RESPONDING TO TREATMENT HIGHLY SKILLED WORKERS FIND FACTORY JOBS BUT LESSSKILLED FACE HARD TIMES DOW CHEMICAL WILL BE PREDOMINANTLY HIRING FOLKS WHO OFFER A SPECIALIZED SKILL SUCH AS PHD CHEMISTS SAYS SPOKESMAN DAN FELLNER BALLBEARING MANUFACTURER KAYDON CORP IN CLEARWATER FLA IS LOOKING ONLY FOR PEOPLE VERSED IN GEOMETRY AND COMPLEX MATH DEERE & CO IS STILL REFRAINING FROM HIRING ALL TYPES OF EMPLOYEES BUT SAYS IT OCCASIONALLY WILL ADD WORKERS IN SPECIALTY AREAS BUT FACTORIES STILL LEAN HEAVILY TOWARD OVERTIME AND TEMPORARY POSITIONS ON THE ASSEMBLY LINE LADD FURNITURE INC OF HIGH POINT NC HAS ITS WORKERS PUT IN MORE SATURDAY HOURS DESPITE A BIG PICKUP IN ITS UPHOLSTERY BUSINESS BUCKING THE TREND COACHMAN INDUSTRIES INC IS PLANNING TO HIRE ONLY ONLINE WORKERS THIS YEAR AVOIDING HIGHWAGE HIRES MEANS OUR OPPORTUNITY TO BECOME MORE PROFITABLE IS CERTAINLY ENHANCED SAYS COACHMAN'S CHIEF FINANCIAL OFFICER GARY GROOM IMAGE PROBLEMS CONTINUE FOR LABOR UNIONS 48 OF PEOPLE RESPONDING TO A WALL STREET JOURNAL/NBC NEWS POLL SAY UNIONS HURT THE CAUSE OF WORKING AMERICANS WHILE 34 SAY THEY HELP ANOTHER 9 SAY SOME OF BOTH THE REST HAVEN'T ANY OPINION IF YOU'RE SAD DON'T GO TO WORK CATHOLIC UNIVERSITY PSYCHOLOGIST PATRICIA MULLINS FOUND THAT SAD PEOPLE HAVE SLOWER MOTOR SKILLS THAN THOSE WHO ARE HAPPY OR NEUTRAL ANGRY SUBJECTS FALL IN THE MIDDLE SHE ALSO NOTED THAT RIGHT AND LEFT HANDS PERFORM DIFFERENTLY IN VARIOUS MOODS SUGGESTING EMOTIONS ARE INFLUENCED BY SEPARATE HEMISPHERES OF THE BRAIN DON'T SEND COLD LETTERS TO FORTUNE 500 COMPANIES NEW YORK OUTPLACEMENT CONSULTANT ADELA OLIVER ADVISES EXECUTIVE JOB SEARCHERS MS OLIVER SAYS SHE IS CONVINCED UNSOLICITED LETTERS JUST GO IN THE CIRCULAR FILE OR BEGET ONLY TEMPORARY EMPLOYMENT OPPORTUNITIES TEMP WORK TAKES TIME AND EFFORT AWAY FROM A PERMANENT JOB SEARCH AND PEOPLE GET LULLED INTO BELIEVING THEY'LL EVENTUALLY GET A PERMANENT JOB OUT OF IT SHE SAYS FAMILY FRIENDLY MANY COMPANIES GO FARTHER THAN THE LAW REQUIRES NONMANDATED WORK AND FAMILY POLICIES ABOUND JOHNSON & JOHNSON ALLOWS EMPLOYEES TO BRING CHILDREN TO WORK TO GET PICKED UP AND DROPPED OFF FOR CAMP DURING THE SUMMER MATTEL INC IN SEGUNDO CALIF CLOSES DOWN EVERY FRIDAY AFTERNOON TO GIVE EMPLOYEES MORE TIME TO SPEND WITH CHILDREN THAT HELPS GET PEOPLE TO BE MORE PRODUCTIVE DURING THE REST OF THE WEEK SAYS A MATTEL SPOKESWOMAN CLOSER ATTENTION IS BEING PAID TO ELDERCARE TOO ATLANTIC RICHFIELD CO HAS SET UP A TOLLFREE LINE AND STAFFED IT WITH COUNSELORS PROVIDING NATIONWIDE REFERRALS TO EMPLOYEES SEEKING CARE FOR OLDER RELATIVES MATTEL SAYS 20 OF DEMAND FOR FAMILY SERVICES INVOLVES CARE FOR OLDER RELATIVES YET A SURVEY BY THE ALEXANDER CONSULTING GROUP FOUND ONLY 14 OF RESPONDENTS HAVE WORKFAMILY MANAGERS AND MORE THAN 54 HAVE NO FORMAL WORKFAMILY GUIDELINES BEYOND WHAT IS REQUIRED THE CHECKOFF AMONG THE 100 QUESTIONS ANSWERED IN THE NEW BOOK PITFALLS FOR JAPANESE EMPLOYERS IN THE UNITED STATES IS HAS THERE BEEN A CASE WHERE A MALE EMPLOYEE WAS HARASSED BY A FEMALE SUPERIOR THE ANSWER IS YES CHARGES FILED UNDER THE AMERICAN WITH DISABILITIES ACT AVERAGED 1692 IN AUGUST AND SEPTEMBER COMPARED WITH A 1200 MONTHLY AVERAGE IN THE PREVIOUS SEVEN MONTHS THE EEOC SAYS 9401110062 940111 HEARD ON THE STREET HARTFORD STEAM BOILER STOCK ATTRACTS ANALYSTS EVEN THOUGH THE SHARES SPRUNG A LEAK IN 1993 BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HARTFORD STEAM BOILER INSPECTION & INSURANCE HAS RECENTLY HAD NOTHING BUT BAD NEWS TO REPORT THAT'S A GREAT COMFORT TO SOME INVESTORS MOST OF THE BAD NEWS IS OUT OF THE WAY RECKONS NATALIE KUCHARSKI AN INSURANCE ANALYST WITH THE EVERGREEN FUNDS A PURCHASE NY MUTUALFUND COMPANY SHE FIGURES THE HARTFORD CONN INSURER PACKED ALL THE BAD NEWS INTO 1993 SO IT CAN GET EARNINGS BACK ON TRACK IN 1994 THE COMPANY HAD A 29 MILLION LOSS FOR THE NINE MONTHS HOBBLED BY A 20 MILLION PRETAX RESTRUCTURING CHARGE A 36 MILLION NET CHARGE RELATED TO AN ACCOUNTING CHANGE AND A PRETAX 272 MILLION ADDITION TO RESERVES HELD TO MEET PRIOR YEARS' INSURANCE CLAIMS THE INTENT WAS TO MAKE SURE THAT OUR RESERVES WERE ADEQUATE SAYS JOHN KELLEY THE SENIOR OFFICER RESPONSIBLE FOR HARTFORD'S COMMERCIAL INSURANCE DIVISION WE BELIEVE THAT THIS RESTRUCTURING CHARGE TAKES CARE OF THE THINGS WE NEED TO ADDRESS THE COMPANY DOESN'T EXPECT TO REPORT ANY UNPLEASANT SURPRISES IN ITS FOURTHQUARTER RESULTS WHICH WILL BE RELEASED JAN 24 THE INSURER'S STOCK TUMBLED ALMOST 24 LAST YEAR IT CLOSED YESTERDAY AT 46 1/2 UP 1 ONLY SLIGHTLY ABOVE THE 52WEEK LOW OF 42 5/8 AND FAR BELOW THE HIGH OF 59 7/8 PROFITS AT HARTFORD STEAM BOILER THE WORLD'S LARGEST BOILER AND MACHINERY INSURER HAVE BEEN DERAILED BY WEATHERRELATED INSURANCE CLAIMS AND BY UNDERPRICING OF SOME POLICIES IT SOLD THE LOSSES HAVE SOWN DOUBTS IN THE MINDS OF SOME LONGTERM HOLDERS WHO HAD BECOME ACCUSTOMED TO STEADY EARNINGS GROWTH THROUGH MUCH OF THE 1980S WE'RE TRYING TO FIGURE OUT WHAT'S HAPPENING JUST LIKE EVERYBODY ELSE SAYS DANIEL EFROYMSON PRESIDENT OF REAL SILK INVESTMENTS AN INDIANAPOLIS INVESTMENT FUND WITH A LARGE POSITION IN HARTFORD STEAM BOILER AT THIS POINT YOU CAN LET OUR ACTIONS SPEAK FOR US WHICH IS WE HAVEN'T SOLD ANY SHARES NOR HAVE WE BOUGHT ANY BUT OTHERS PERCEIVE A BUYING OPPORTUNITY I LIKE THE STOCK IN THE MID40S SAYS ALLAN FULKERSON MANAGER OF CENTURY SHARES TRUST A MUTUAL FUND THAT SPECIALIZES IN INSURANCE STOCKS THERE IS A QUESTION OF WHETHER THEY HAVE ALL OF THE BAD NEWS OUT OF THE WAY AND I THINK THAT'S WHAT'S KEEPING THE STOCK BACK MY GUT FEELING IS THAT THEY'VE GOT MOST OF THE BAD NEWS OUT MR FULKERSON NOTES THAT HISTORICALLY HARTFORD STEAM BOILER HAS BEEN AMONG THE BETTERRUN INSURANCE COMPANIES MANY INSURERS LOSE MONEY ON THEIR INSURANCE POLICIES BUT MANAGE TO TURN A PROFIT BECAUSE OF INVESTMENT GAINS HARTFORD STEAM BOILER BY CONTRAST HAS NOT ONLY HAD FINE INVESTMENT RETURNS IT ALSO HAS TYPICALLY MADE MONEY ON ITS INSURANCE UNDERWRITING A KEY REASON FOR HARTFORD'S UNDERWRITING SUCCESS HAS BEEN ITS INHOUSE TEAM OF ENGINEERS WHO INSPECT EQUIPMENT BEFORE THE COMPANY AGREES TO INSURE IT BUT IN 1992 AFTER SEVEN YEARS OF UNDERWRITING PROFITABILITY HARTFORD STEAM BOILER HAD A MODEST LOSS ON ITS UNDERWRITING THE SITUATION WORSENED IN THE FIRST NINE MONTHS OF 1993 WITH THE COMPANY PAYING OUT 111 IN CLAIMS AND EXPENSES FOR EVERY 1 OF INSURANCE PREMIUMS IT COLLECTED HISTORICALLY THEY'VE DONE A VERY GOOD JOB OF UNDERWRITING SAYS MR FULKERSON MY EXPECTATION WOULD BE THAT THEY'LL RETURN TO UNDERWRITING PROFITABILITY THE COMPANY NOW IS DEMANDING BETTER TERMS WHEN INSURANCE POLICIES COME UP FOR RENEWAL IT'S ALSO CUTTING COSTS BY TRIMMING 300 EMPLOYEES AND CLOSING OFFICES WHEN THERE IS A FIRMING IN COMMERCIAL PRICES THEY STAND TO BE A REAL BENEFICIARY MR FULKERSON SAYS UNLESS THERE'S A CATASTROPHE THAT PROMPTS A WAVE OF INSURANCE CLAIMS HE BELIEVES HARTFORD'S EARNINGS WILL RECOVER THIS YEAR FANS OF THE STOCK ALSO LIKE HARTFORD'S DIVIDEND YIELD NOW 45 IT'S GOT GREAT DOWNSIDE PROTECTION BECAUSE OF THE YIELD SAYS NOLA FALCONE MANAGER OF THE EVERGREEN TOTAL RETURN FUND I'VE FOUND THAT WHEN THIS COMPANY GETS TO THIS TYPE OF YIELD IT'S A BUY I THINK IT'S A 75 STOCK ANALYSTS ARE LOOKING FOR THE COMPANY TO EARN 216 A SHARE IN 1994 FURTHER GAINS SHOULD COME IN 1995 AS THE COMPANY CONTINUES TO RENEW INSURANCE POLICIES ON MORE FAVORABLE TERMS HOW MUCH ROOM FOR IMPROVEMENT IS THERE IN 1990 WHEN HARTFORD'S PROFITS PEAKED THE COMPANY EARNED 380 A SHARE KEITH HYNES CHIEF FINANCIAL OFFICER BELIEVES HARTFORD STEAM BOILER IS ON THE WAY BACK TO THE 1990 EARNINGS LEVEL WE THINK THAT'S ACHIEVABLE IN 1995 HE SAYS IN RECENT MONTHS WE'VE BEEN BUYING BACK STOCK FOR THE COMPANY BECAUSE WE FEEL THAT THE STOCK IS A GOOD INVESTMENT 9401110061 940111 LEISURE & ARTS THE MOBILE GUIDE IN CHAOTIC NIGERIA IT PAYS TO BE A FRIEND OF BILL' BY TRACY JOHNSTON AFTER A WHILE ALL THIRD WORLD AIRPORTS SEEM THE SAME FIRST THERE IS THE MAN WHO GRABS YOUR LUGGAGE SAYING YOU'LL NEED HIS HELP TO GET THROUGH CUSTOMS OR INTO A TAXI OR TO THE FRONT OF ONE OF THE LINES WHICH TURNS OUT TO BE A EUPHEMISM FOR A CIRCLE OF PEOPLE SURROUNDING A TICKET COUNTER LIKE AMOEBAS DOING A SLAM DANCE AND THEN THERE IS THE OTHER MAN THE ONE WHO WARNS YOU THAT THE MAN WHO HAS GONE OFF WITH YOUR LUGGAGE IS A THIEF BUT NO PROBLEM WITH YOUR PERMISSION HE'LL GET BACK YOUR LUGGAGE AND FINALLY WHILE THE MAN WHO HAS YOUR LUGGAGE AND THE MAN WHO WANTS YOUR LUGGAGE ARE YELLING AT EACH OTHER AND RAISING THEIR FISTS LIKE CARTOON CHARACTERS WITH S OVER THEIR HEADS THE OTHER OTHER MAN POPS UP HE IS WELLSPOKEN AND WELLDRESSED AND OFFERS TO LET YOU IN ON A MONEYCHANGING SCHEME EVENTUALLY YOU LEARN YOU CAN'T TRUST HIM BUT EVENTUALLY IS A LONG LONG TIME THIS IS TO SAY THAT I THOUGHT I HAD MY AIRPORT CHOPS UNTIL A FRIEND I WAS PLANNING TO VISIT IN NIGERIA WROTE ME TO AVOID THE AIRPORT IN LAGOS THE CAPITAL AT ALL COSTS I DISMISSED HIS WARNING FIGURING THAT BECAUSE HE WAS A MUSLIM HE BELIEVED I NEEDED SPECIAL PROTECTION BUT THEN THE LAGOS AIRPORT STORIES STARTED POPPING UP I HEARD ONE FROM A MUSEUM CURATOR WHO TRAVELS EXTENSIVELY IN AFRICA I DON'T GO TO LAGOS UNLESS SOMEONE CAN MEET ME AT THE AIRPORT SHE SAID THERE WAS ONE WOMAN WHO WAS GOING TO FLY INTO LAGOS FROM I'M NOT SURE SOMEWHERE IN AFRICA I WAS IN LAGOS AT THE TIME AND WE TALKED ON THE PHONE I WARNED HER ABOUT THE AIRPORT BUT SHE JUST BRUSHED ME OFF THEN WHEN SHE DIDN'T SHOW UP I HEARD THAT SHE HAD INDEED FLOWN INTO LAGOS BUT NEVER MADE IT OUT OF THE AIRPORT SOMETHING HAPPENED TO HER THERE THAT MADE HER TURN AROUND AND GET ON THE NEXT PLANE OUT I WAS GOING TO NIGERIA TO RESEARCH A BOOK ON POLYGAMOUS MARRIAGE AND REALLY HAD NO GOOD REASON TO TRAVEL OUTSIDE NORTHERN NIGERIA WHICH IS A MIRACULOUSLY PEACEFUL AREA POPULATED BY HAUSA MUSLIMS BUT SOMETHING MADE ME BOOK MY RETURN TICKET FROM LAGOS I KNEW IT MIGHT BE A GOOD STORY I GUESS AND I HAD A REPUTATION AS A THRILLSEEKING ADVENTURER TO UPHOLD ALSO I JUST COULDN'T BELIEVE IT WOULD BE THAT HARD TO GET THROUGH A MAJOR INTERNATIONAL AIRPORT THE PLAN SEEMED DUMBER AND DUMBER HOWEVER ONCE I REACHED NIGERIA THERE WAS A GAS CRISIS WHICH MADE IT CHANCY TO DRIVE TO LAGOS FROM KANO WHERE I WAS BASED A JOURNEY OF 13 HOURS AND THERE WAS RIOTING AROUND LAGOS AFTER THE MILITARY GOVERNMENT CANCELED THE NATIONAL ELECTION FINALLY I DECIDED TO FLY TO LAGOS CHANGE PLANES AND GET THE MEREST WHIFF OF THE INFAMOUS AIRPORT THERE WERE DELAYS BEYOND NUMBER OR REASON AT THE START OF MY JOURNEY IN KANO BUT EVENTUALLY I WAS STANDING ON THE TARMAC IN ONE OF THE THREE LINES OF PEOPLE SNAKING UP TO DC7S THAT WERE MAKING THE MORNING RUN TO LAGOS SINCE ONE OF MY NIGERIAN FRIENDS HAD PUSHED HIS WAY TO THE MIDDLE OF ONE OF THE LINES FOR ME AND I HAD A CONFIRMED SEAT I FELT CONFIDENT BUT THAT WAS BEFORE A POLICEMAN APPEARED AND ANNOUNCED THAT THE PLANES WERE FULL AND ALL MORNING FLIGHTS FINISHED MY FRIEND WHO KNEW I HAD TO BE HOME IN TIME FOR MY STEPDAUGHTER'S WEDDING IMMEDIATELY MOVED INTO ACTION GIVE ME YOUR WALLET HE SAID I'M GOING TO BRIBE THE PILOT TO LET YOU SIT IN THE COPILOT'S SEAT HE RETURNED 20 MINUTES LATER SAYING HE HAD ACTUALLY GOTTEN INTO THE COCKPIT ONLY TO SEE SOMEONE ALREADY IN THE COPILOT'S SEAT SOME MAN HE SAID WAS SITTING THERE WITH HIS MONEY STILL SPREAD OUT ALL OVER HIS LAP I COULDN'T BELIEVE IT IT WAS SO OBVIOUS AND SO I HAD THE LOVELY EXPERIENCE OF FAXING MY HUSBAND THAT I MIGHT BE JUST A LITTLE LATE TO GREET SOME OF THE RELATIVES WHO WERE FLYING IN FOR THE WEDDING THREE DAYS LATER I WAS AT KANO AIRPORT AGAIN THIS TIME THREE HOURS EARLY FOR A FLIGHT TO SAN FRANCISCO WITH NO CONNECTION TO LAGOS ALL WENT WELL UNTIL A PASSPORTCONTROL OFFICER POINTED OUT THAT MY VISA HAD EXPIRED THREE DAYS AGO THE DAY I WAS SUPPOSED TO LEAVE NIGERIA YOU HAVE BEEN HERE ILLEGALLY HE SAID AND WE TAKE OUR IMMIGRATION LAWS VERY SERIOUSLY I KNEW HE WASN'T KIDDING THE BROTHER OF A GERMAN GIRL I'D MET HAD BEEN THROWN IN JAIL FOR OVERSTAYING HIS VISA BY A WEEK BUT THE POSSIBILITY OF MISSING MY STEPDAUGHTER'S WEDDING WAS UNTHINKABLE I REACHED INTO MY PURSE AND BROUGHT OUT MY WALLET BUT TO MY DISMAY THE OFFICER SEEMED OFFENDED WHERE WERE ALL THE CORRUPT OFFICERS NOW THAT I NEEDED THEM THE CUSTOMS OFFICER BEGAN TALKING FEVERISHLY IN HAUSA TO THE FRIENDS WHO HAD COME TO SEE ME OFF AND I LISTENED TO TRY TO CATCH THE ENGLISH WORDS EDUCATED HAUSA PEOPLE SPRINKLE INTO THEIR CONVERSATIONS I HEARD VISITING PROFESSOR AND RESEARCH AND WELLCONNECTED AND PUBLIC IMAGE THIS WAS A GOOD SIGN ALL THE NIGERIANS I'D MET COULD IMPROVISE FANTASTICAL STORIES IF THEY NEEDED TO FINALLY I HEARD THE PASSPORT OFFICER SAY INCREDULOUSLY PRESIDENT CLINTON THE EXCHANGE WENT OTHER FRIEND GOOD FRIEND CLASSMATES US PRESIDENT THE OFFICER WAS STILL UNWILLING TO GIVE UP MY PASSPORT IT SEEMED AND I WAS CONSIDERING BURSTING INTO TEARS WHEN SUDDENLY A VERY LARGE MAN WEARING A GREAT BILLOWING PASTEL BLUE MUSLIM GOWN CAME UP TO US WITH OUTSTRETCHED ARMS HE HAD BEEN A CLASSMATE OF ONE OF MY FRIENDS AND THEY GREETED EACH OTHER EFFUSIVELY TRACY OUR PROBLEMS ARE OVER MY FRIEND TURNED TO ME AND SAID THIS MAN IS THE MANAGER OF THE ENTIRE KANO AIRPORT WHEN WE WERE INTRODUCED THE MAN SHOOK MY HAND AND SAID HE WAS SORRY TO HEAR THERE HAD BEEN TROUBLE WITH MY VISA THEN HE SMILED AND SAID HE HAD JUST ONE QUESTION WHAT IT IS I ASKED IT'S ABOUT OUR MUTUAL FRIEND HE REPLIED YOU MEAN AUWALU I ASKED YOU MEAN ABDALLA NO TRACY I'M TALKING ABOUT YOUR PRESIDENT YES HOW IS HE HOW IS PRESIDENT BILL HE'S JUST FINE THANKS I'LL GIVE HIM YOUR BEST BACK HOME AFTER THE WEDDING NIGERIA RECEDED TO THAT PLACE IN THE MIND WHERE EXPERIENCE BECOMES MEMORY BUT THE IMAGE OF THE LAGOS AIRPORT AS A 20THCENTURY URBAN NIGHTMARE STILL SURFACES NOW AND THEN IN AUGUST WHEN THE US DEPARTMENT OF TRANSPORTATION SUSPENDED ALL FLIGHTS TO THE LAGOS AIRPORT FROM AMERICAN SOIL I CALLED WASHINGTON TO FIND OUT WHY IN 1985 IT TURNS OUT AFTER A RASH OF HIJACKINGS CONGRESS PASSED A LAW REQUIRING THE FEDERAL AVIATION ADMINISTRATION TO MONITOR THE SECURITY OF ALL FOREIGN AIRPORTS LAGOS IS THE FIRST AIRPORT TO MAKE THE SUSPENDED LIST BUT THE REASONS HAVE NOTHING TO DO WITH ARMED ROBBERY STOLEN LUGGAGE AND EXTORTION IT'S BECAUSE AFTER A WARNING BY THE FAA THE AIRPORT WASN'T ABLE TO MEET SOME VERY SECRET INTERNATIONAL AVIATIONSECURITY STANDARDS I THINK OF GOING TO LAGOS NOW TO TEST MY NEW SURVIVAL TOOL STORYTELLING AS A 20THCENTURY URBAN LIFE RAFT I'VE GOT A STORY WORKED UP ABOUT HOW BILL CLINTON'S MOM AND MY MOM WERE HIGHSCHOOL CLASSMATES AND ROGER AND BILL AND I USED TO SING TOGETHER THERE'S MORE BUT I'LL SAVE IT FOR MY NEXT TRIP TO AFRICA OR MAYBE I'LL OFFER IT TO THAT WOMAN WHO TURNED AROUND AND GOT BACK ON THE PLANE IN LAGOS MS JOHNSTON IS AUTHOR OF SHOOTING THE BOH A WOMAN'S VOYAGE DOWN THE WILDEST RIVER IN BORNEO VINTAGE 9401110060 940111 TECHNOLOGY BRIEF AMERICAN TELEPHONE & TELEGRAPH MULTIMEDIA MESSAGE SYSTEM FOR CORPORATIONS IS UNVEILED AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK UNVEILED A MULTIMEDIA MESSAGING SYSTEM FOR CORPORATIONS THAT LETS WORKERS EXCHANGE VOICE TEXT AND VISUAL MESSAGES CALLED INTUITY THE SYSTEM COMBINES FEATURES OF AT&T'S VOICEMAIL AND VOICERECOGNITION SYSTEMS INTO A BOX ABOUT THE SIZE OF A PERSONAL COMPUTER'S BASE UNIT THE SYSTEM CAN BE CONNECTED TO AN OFFICE PHONE SWITCH AND WOULD ALLOW WORKERS IN NUMEROUS LOCATIONS TO GAIN ACCESS TO THE SAME FUNCTIONS AT&T SAID VOICE DATA AND VIDEO TECHNOLOGIES HAVE BEEN CONVERGING AT&T NORTHERN TELECOM LTD AND OTHER MAKERS OF COMMUNICATIONS GEAR ARE INCREASINGLY MELDING THESE FUNCTIONS INTO SINGLE SYSTEMS THE INTUITY SYSTEM LETS A WORKER AT A PC CHECK A VOICE OR TEXT MESSAGE CONVERT TEXT FROM A FAX INTO VOICE AND READ IT ALOUD AND DO OTHER TASKS PRICES RANGE FROM 21000 FOR A UNIT THAT WILL HANDLE UP TO 300 USERS TO 269000 FOR ONE THAT WILL LINK UP TO 20000 OFFICE WORKERS AT&T SAID VISUAL COMMUNICATIONS MESSAGE SOFTWARE WILL BE AVAILABLE BY EARLY 1995 9401110059 940111 REVIEW & OUTLOOK EDITORIAL THE SPEAKER STRIKES BACK TODAY SPEAKER THOMAS FOLEY'S LAWYERS WILL BE IN COURT SUING THE VOTERS OF HIS HOME STATE THEY WILL ARGUE IN FEDERAL COURT IN SEATTLE THAT WASHINGTON STATE VOTERS HAD NO RIGHT TO IMPOSE TERM LIMITS ON HIM IN 1992 BUT THE COURTROOM SHOWDOWN ALSO INVOLVES A BROADER ISSUE WHETHER THE AMERICAN PEOPLE CAN REESTABLISH CONTROL OVER AN ENTRENCHED POLITICAL CLASS IN WASHINGTON DC LLOYD CUTLER WHO SERVED AS PRESIDENT JIMMY CARTER'S LEGAL COUNSEL NOW REPRESENTS SPEAKER FOLEY HE NOTES THAT THE CONSTITUTION LISTS THREE QUALIFICATIONS FOR SERVING IN CONGRESS AGE STATE RESIDENCY AND CITIZENSHIP MR CUTLER WILL ARGUE THAT THIS MEANS THE STATES CANNOT IN ANY WAY FURTHER REGULATE WHO SERVES IN CONGRESS GRIFFIN BELL WHO WAS PRESIDENT CARTER'S ATTORNEY GENERAL DISAGREES HE WILL ARGUE ON BEHALF OF THE TERM LIMITS LEGAL INSTITUTE THAT THE STATES WERE SPECIFICALLY GIVEN POWER IN THE CONSTITUTION TO REGULATE ACCESS TO THEIR BALLOTS AND THAT THE SUPREME COURT HAS UPHELD MOST OF THE RESTRICTIONS IMPOSED BY STATES BUT MR BELL WILL ALSO CONTEND THAT THE TENTH AMENDMENT WHICH RESERVES POWERS NOT SPECIFICALLY GRANTED THE FEDERAL GOVERNMENT TO THE STATES OR THE PEOPLE CLINCHES THE CONSTITUTIONAL RIGHT OF A STATE TO IMPOSE TERM LIMITS ON ITS OWN MEMBERS OF CONGRESS SPEAKER FOLEY'S LAWYERS TAKE DIRECT ISSUE WITH THAT VIEW IN A LEGAL BRIEF FILED LAST MONTH THEY ARGUE THAT NONE OF THE CONTEMPORARY INTERPRETATIONS OF THE TENTH AMENDMENT LEND EVEN REMOTE SUPPORT TO THE PROPOSITION THAT A STATE OR ITS PEOPLE CAN CONTROL ANY ASPECT OF THE FEDERAL GOVERNMENT WELL THERE YOU HAVE IT SOME 200 YEARS AFTER THE FOUNDING FATHERS DRAFTED WHAT THEY BELIEVED WAS A DOCUMENT THAT PLACED THE PEOPLE IN CHARGE OF A LIMITED FEDERAL GOVERNMENT THE FEDERAL OFFICIAL SECOND IN LINE FOR THE PRESIDENCY NOW CONTENDS IN SWEEPING LANGUAGE THAT THE FEDERAL GOVERNMENT IS BEYOND WHATEVER ATTEMPTS AT CONTROL MAY BE DIRECTED AT IT SPEAKER FOLEY CAN BE EXCUSED FOR HOLDING THAT BELIEF RECENT CONSTITUTIONAL HISTORY CONSISTS OF A LONG SERIES OF COURT RULINGS THAT HAVE CHIPPED AWAY AT THE SYSTEM OF FEDERALISM DESIGNED BY THE FOUNDING FATHERS IN RECENT YEARS CONGRESS HAS HANDED OVER ENORMOUSLY POWERFUL BUT TERRIBLY VAGUE LAWS TO THE FEDERAL BUREAUCRACY WHOSE AUTHORITY TO INTERPRET AND ENFORCE THESE LAWS AS IT SEES FIT IS ROUTINELY SUPPORTED BY THE COURTS THE TERM LIMITS MOVEMENT REPRESENTS IN PART AN ATTEMPT BY THE PEOPLE TO REGAIN CONTROL OVER THEIR LEGISLATURES TO RESTORE THE PROPER BALANCE BETWEEN THE PEOPLE AND THEIR ELECTED OFFICIALS IN OUR REPUBLICAN FORM OF GOVERNMENT MR BELL WHO HAS ALSO SERVED AS A FEDERAL JUDGE BELIEVES THAT THE BATTLE TO ESTABLISH THE CONSTITUTIONALITY OF STATE TERM LIMITS WILL BE THE MOST IMPORTANT CONSTITUTIONAL ISSUE BEFORE THE COURTS IN THIS DECADE THE CONTROVERSY IS SIMPLE DO THE PEOPLE HAVE SOVEREIGNTY OVER THEIR FEDERAL GOVERNMENT OR DOES WASHINGTON ULTIMATELY CALL THE TUNE HE TOLD US THE OPENING ROUND OF THAT ARGUMENT WHICH WILL EVENTUALLY BE SETTLED BY THE SUPREME COURT BEGINS TODAY 9401110058 940111 INTERNATIONAL JAPANESE FIRM'S RETIREMENT PLAN TOKYO OKUMA CORP DECIDED TO LOWER ITS MANDATORY RETIREMENT AGE TO 56 FROM 60 THE FIRST JAPANESE COMPANY IN RECENT YEARS TO SHORTEN WORKERS' CAREERS THE MOVE BY THE MACHINETOOL MAKER WILL SQUEEZE 150 OF ITS 2200 EMPLOYEES OUT OF A JOB ON FEB 15 A COMPANY OFFICIAL SAID WITH JAPAN MIRED IN A SEVERE RECESSION MANY CORPORATIONS ARE SEEKING TO MAKE CUTBACKS IN A WORK FORCE FOR WHICH CUSTOM GUARANTEES LIFETIME EMPLOYMENT 9401110057 940111 LEISURE & ARTS BOOKSHELF A STRAINED NEOGAWAIN BY MERLE RUBIN IRIS MURDOCH'S 25TH NOVEL THE GREEN KNIGHT VIKING 472 PAGES 2395 TAKES ITS NAME AND SOMETHING OF ITS THEME FROM THE CLASSIC RATHER CHARMING 14THCENTURY VERSE ROMANCE SIR GAWAIN AND THE GREEN KNIGHT IN WHICH GAWAIN A KNIGHT OF THE LEGENDARY ROUND TABLE TAKES ON THE CHALLENGE OF A MYSTERIOUS OUTSIZE GREEN STRANGER IN RETURN FOR THE PRIVILEGE OF STRIKING THE FIRST BLOW AGAINST THE GIANT WITH AN AX GAWAIN AGREES TO LET THE GIANT TAKE A SWIPE AT HIM WHEN GAWAIN NEATLY DECAPITATES THE INTRUDER IN ONE FELL SWOOP HOWEVER THE LATTER BLITHELY TUCKS HIS HEAD UNDER HIS ARM AND RIDES OFF REMINDING GAWAIN OF HIS PROMISE TO SUBMIT TO A REMATCH A NERVOUS GAWAIN EVENTUALLY DOES SO AFTER A MINOR ATTEMPT AT CHEATING THE GREEN GIANT WHOSE UNCANNY HUE AND REGENERATIVE POWERS LED HIM TO BE CLASSED AS A VEGETATIVE DEITY LONG BEFORE HIS 20THCENTURY DEBUT AS THE JOLLY FROZENVEGETABLE KING SPARES GAWAIN'S LIFE BUT LEAVES HIM WITH A TINY NICK ON THE NECK AS A MEMENTO OF HIS SLIGHT LAPSE FROM KNIGHTLY STANDARDS MS MURDOCH'S VARIATION ON THIS TIMEHONORED ENGLISH MYTH COMBINES ITS DUELINGKNIGHTS MOTIF WITH THE LETHAL GRAPPLINGS OF CAIN AND ABEL LUCAS GRAFFE A DISAGREEABLY COLD FAMOUSLY BRILLIANT HISTORIAN IS IN SECLUSION FOLLOWING A MUCH PUBLICIZED INCIDENT IN WHICH HE FOUGHT OFF AND UNINTENTIONALLY KILLED A MUGGER LUCAS'S WORSHIPFUL AND SOMEWHAT OVERAWED CIRCLE OF FRIENDS AND FAMILY RESPECT HIS RELUCTANCE TO PLAY THE PART OF VIGILANTE HERO BUT THEY ARE WORRIED AT NOT KNOWING WHERE HE IS HIDING MOST WORRIED OF ALL IS LUCAS'S YOUNGER BROTHER CLEMENT A HANDSOME LIKABLE ETERNALLY BOYISH 40YEAROLD ACTOR WHO'S LOOKED UP TO LUCAS ALL HIS LIFE THE INTENSITY OF CLEMENT'S BROTHERLY CONCERN BECOMES A LOT HARDER TO UNDERSTAND WHEN IT IS REVEALED THAT FAR FROM BEING AN INNOCENT LONDON PEDESTRIAN SURPRISED BY A MUGGER LUCAS WAS ACTUALLY ON THE POINT OF COMMITTING FRATRICIDE WHEN AN UNKNOWN GOOD SAMARITAN HAPPENED BY AND ACCIDENTALLY RECEIVED THE FATAL BLOW INTENDED FOR CLEMENT THE HARDY STRANGER ONE PETER MIR WHOSE LAST NAME AS HE OBLIGINGLY EXPLAINS MEANS WORLD AND PEACE IN RUSSIAN MIRACULOUSLY TURNS OUT TO HAVE SURVIVED AFTER ALL HE COMES BACK TO CONFRONT LUCAS AND CLEMENT DEMANDING RETRIBUTION FIRST FOR THE HARM INFLICTED ON HIM A MEMORY LAPSE THAT MAKES IT IMPOSSIBLE TO FOR HIM TO CONTINUE HIS CAREER AS A PSYCHOANALYST SECOND FOR THE HARM INTENDED TOWARD CLEMENT LUCAS CLAIMS HE SIMPLY CANNOT UNDERSTAND MIR'S UNREASONABLE OBSESSION WITH REVENGE EVEN MORE AMAZINGLY CLEMENT IS ANGRIER AT MIR FOR TURNING UP AND MAKING TROUBLE THAN AT HIS BROTHER FOR HAVING TRIED TO KILL HIM MIR AN ENGAGING PLUMPISH FELLOW WITH A PENCHANT FOR GREEN NECKTIES SEEMS INTERESTED IN SOME KIND OF SYMBOLIC REENACTMENT OF THE ACCIDENT/CRIME BUT WHAT HE'S EVEN MORE ANXIOUS TO DO IS TO BE INTRODUCED TO THE GRAFFE BROTHERS' SOCIAL CIRCLE THIS CONTEMPORARY ROUND TABLE IS A SET OF THE USUAL IRIS MURDOCH TYPES BELLAMY A TORMENTED INACTIVE RELIGIOUSLY OBSESSED HOMOSEXUAL PLANNING TO JOIN A MONASTERY JOAN A RAVENOUS RADDLED DIVORCEE WITH A TEENAGE SON HARVEY JOAN'S FRIEND AND UNWITTING RIVAL LOUISE A WISE GENTLE WIDOW WITH THREE FAIRYTALE WONDERFUL NUBILE DAUGHTERS BEARING THE INSUFFERABLE NAMES ALEPH SEFTON AND MOY A TOUGH SOCIAL WORKER NAMED TESSA AND A PAIR OF UNTORMENTED HOMOSEXUALS WHO HOVER TACTFULLY AND PROBABLY WISELY OFFSTAGE MOST OF THE BOOK A WISE AND WINSOME DOG SOULFUL ANIMALS ARE A MURDOCH SPECIALTY IS ALSO IN ATTENDANCE JOAN IS KEEN ON CLEMENT WHOM SHE'S BEDDED ONCE MUCH TO HIS CHAGRIN HE'S TERRIFIED THAT LOUISE WITH WHOM HE IS SECRETLY IN LOVE WILL FIND OUT AND GET THE WRONG IDEA YOUNG HARVEY LOVES ALEPH BUT PERHAPS ONLY AS A SISTER SEFTON A BUDDING STUDENT OF HISTORY WORSHIPS THE CHILLY LUCAS LUCAS LOVES NO ONE FIFTEENYEAROLD MOY LOVES EVERYTHING DOGS SPIDERS BEETLES AND SPENDS A LOT OF TIME TRYING TO FIGURE OUT WHETHER THE ROCKS IN HER COLLECTION MIGHTN'T BE HAPPIER BACK WHERE SHE TOOK THEM FROM IN THE FIRST PLACE DOES THIS SOUND A BIT STRAINED IT ONLY BECOMES MORE SO AS MS MURDOCH FAILS TO ACCOUNT FOR LUCAS'S MURDEROUS RAGE OR HIS BROTHER'S STEADFAST ATTACHMENT HUMAN BEINGS PERCEIVE AND BEHAVE IN MYSTERIOUS WAYS AND FOR THE PAST FOUR DECADES MS MURDOCH HAS BEEN TACKLING SOME OF THESE MYSTERIES WITH SENSITIVITY TACT AND INSIGHT BUT THERE ARE TIMES WHEN IT SEEMS THAT INSTEAD OF REALLY EXPLORING HER CHOSEN THEMES SHE IS CONTENT MERELY TO CONJURE UP A CAST OF SELFIMPORTANT SELFINVOLVED CHARACTERS WHO TALK ABOUT IDEAS WITHOUT DEMONSTRATING ANY APTITUDE FOR SUSTAINED THOUGHT AND WALLOW IN EMOTIONS THAT BEAR LITTLE RELATION TO THE STORY LINE THIS UNFORTUNATELY IS THE CASE IN THE GREEN KNIGHT MAKING IT EQUALLY UNCONVINCING AS MYTH AND AS REALISM THE THESIS IS MUDDLED THE CHARACTERS EXASPERATING THE EMOTIONS BOGUS THE SCENES INTERMINABLE AND THE WRITING ASTONISHINGLY BAD CONSIDER THIS CLEMENT AND LOUISE RISING TO MEET THEM WERE WEARING RESPECTIVELY LOUISE A PALE BLUE VELVET DRESS WITH A LACE COLLAR AND A DARK BLUE CARDIGAN AND CLEMENT A LIGHT GOLDEN BROWN SUIT WITH A DARK RED SHIRT AND A LIGHT RED BOW TIE WHEN A WRITER AS GIFTED AS MS MURDOCH CAN PRODUCE A SENTENCE LIKE THAT SOMETHING HAS GONE TERRIBLY WRONG AND NOT JUST WITH THE PROSE STYLE 9401110056 940111 BUSINESS BRIEF MCCORMICK & CO NET INCOME ROSE BY 16 DURING THE FOURTH QUARTER MCCORMICK & CO SPARKS MD SAID FOURTHQUARTER NET INCOME ROSE 16 DUE TO STRENGTH IN ITS INTERNATIONAL INDUSTRIAL AND PACKAGING OPERATIONS NET FOR THE QUARTER ENDED NOV 30 ROSE TO 405 MILLION OR 50 CENTS A SHARE FROM THE YEAREARLIER 35 MILLION OR 43 CENTS A SHARE SALES ROSE 19 TO 4608 MILLION FROM 4522 MILLION FOURTHQUARTER RESULTS INCLUDE A CHARGE OF TWO CENTS A SHARE OR 12 MILLION DUE TO AN INCREASE IN THE FEDERAL CORPORATE TAX RATE AND POSTRETIREMENT BENEFITS BAILEY THOMAS THE SPICE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY HAD A SUCCESSFUL YEAR DESPITE ONION COSTS UNFAVORABLE FOREIGNEXCHANGE RATES AND WEAK ECONOMIC CONDITIONS IN MANY MARKETS WE EXPECT 1994 TO BE ANOTHER GOOD YEAR HE SAID FOR THE FULL YEAR NET INCOME FELL 23 TO 73 MILLION OR 89 CENTS A SHARE FROM THE YEAREARLIER 952 MILLION OR 116 A SHARE THE LATEST YEAR INCLUDES A 266 MILLION OR 33 CENT A SHARE CHARGE FOR CUMULATIVE EFFECTS OF ACCOUNTING CHANGES SALES ROSE 57 TO 156 BILLION FROM 147 BILLION 9401110055 940111 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON JUDGING FROM THIS MOVIE CLINT EASTWOOD IS THE PERFECT DIRECTOR FOR KEVIN COSTNER PLAYING A PRISON ESCAPEE ON THE LAM WITH A YOUNG BOY AS HOSTAGE MR COSTNER IS QUITE MOVING AND QUITE CREDIBLE AS A TROUBLED MAN WHO HAS ONLY A LOOSE LID CAPPING HIS TROUBLES MR EASTWOOD NO SLOUCH HIMSELF WHEN IT COMES TO PLAYING IMPASSIVE MEN IS THE AGING LAWMAN TRACKING THE CONVICT WITH THE WORLDWEARINESS HE'S BEEN PERFECTING IN HIS PAST FEW FILMS IT'S AN INTELLIGENT PICTURE WRITTEN BY SCREENWRITER JOHN LEE HANCOCK WITH AUTHENTIC FEELING FOR THE SMALL TOWNS AND BACK ROADS OF TEXAS WITH SCHINDLER'S LIST STEVEN SPIELBERG HAS CREATED A MOVIE THAT FALLS OUTSIDE THE ORDINARY OR EVEN EXTRAORDINARY THERE IS ENORMOUS PASSION AND ARTISTIC INTEGRITY THROUGHOUT THIS FILM ABOUT A HEDONISTIC GERMAN INDUSTRIALIST WHO FOUND A MOMENT OF GRACE BY SAVING MORE THAN A THOUSAND JEWS FROM THE NAZIS SCHINDLER'S LIST EMPHASIZES MR SPIELBERG'S REAL GENIUS HIS POETIC VISUAL IMAGINATION HIS INTELLIGENCE AND HIS SENSE OF HUMANITY THIS FILM ABOUT THE WRITER CS LEWIS AND HIS LATEINLIFE MARRIAGE TO A FEISTY AMERICAN POET HAS TREMENDOUS IMPACT ESPECIALLY FOR THOSE SUSCEPTIBLE TO THIS KIND OF LITERATE TEARJERKER AS ELOQUENTLY IMAGINED BY WILLIAM NICHOLSON WHO ADAPTED HIS PLAY FOR THE MOVIE THEIR RELATIONSHIP WAS AN IDEALIZED ROMANTIC FANTASY MORE SPIRITUAL THAN SEXUAL THE FILM CAPTURES THE SAFETY AND GRANDEUR OF CS LEWIS'S OXFORD AND SHOWS A DEEP APPRECIATION OF MR NICHOLSON'S ELEGANT LANGUAGE WHICH IS DELIVERED MASTERFULLY BY ANTHONY HOPKINS AND DEBRA WINGER A HARROWING FASCINATING ACCOUNT OF A TRUE STORY A YOUNG IRISHMAN AND HIS FAMILY ARE WRONGLY CONVICTED OF TERRORISM AND MURDER BY THE BRITISH AUTHORITIES THE YOUNG MAN GERRY CONLON SPENDS YEARS IN PRISON BEFORE A LAWYER BELIEVING HE WAS WRONGED GETS THE CASE REOPENED DANIEL DAYLEWIS GIVES GERRY'S CONFUSION AND POLITICAL AWAKENING AND HIS DISILLUSIONMENT GRITTY AUTHENTICITY THOUGH THE SUBJECT IS POLITICS THE FILM'S HEART LIES WITH ITS EXPLORATION OF THE RELATIONSHIP BETWEEN GERRY AND HIS FATHER A MORAL MAN GIVEN THE STRENGTH OF SAINTS BY THE MAN WHO PLAYS HIM PETE POSTLETHWAITE UNLIKE MOST CONVENTIONAL FILMS THIS MOVIE ISN'T SO MUCH ABOUT WHAT HAPPENS TO WHOM AND HOW DESPITE THE MELODRAMATIC FRAME OF ITS STORY IT'S ABOUT A 19THCENTURY SCOTTISH WOMAN WHOSE FATHER HAS ARRANGED FOR HER TO MARRY A MAN IN NEW ZEALAND SHE TRAVELS TO THIS REMOTE PLACE WITH HER YOUNG DAUGHTER AND MEETS A MAN NOT HER BETROTHED WHO KNOWS SEXUAL REPRESSION WHEN HE SEES IT AND DECIDES TO SET HER FREE WITH ITS BREATHTAKING VISUAL STYLE AND CAREFUL ATTENTION TO SOUND AND MOVEMENT THE MOVIE PROVOKES CONTEMPLATION ABOUT THE WAYS PEOPLE COMMUNICATE THROUGH WORDS THROUGH MUSIC THROUGH SEX AND MOST SIGNIFICANTLY THROUGH TOUCH THIS CLEVER ADAPTATION OF JOHN GUARE'S BRILLIANTLY FUNNY PLAY GIVES A CINEMATIC THEATRICALITY TO THE WRITER'S SHREWD BITING OBSERVATIONS ON UPSCALE LIFE IN MANHATTAN AS WELL AS ART RACE CLASS AND FAMILY BOTH PLAY AND MOVIE WERE BASED ON A REALLIFE HUSTLE PULLED OFF BY A YOUNG BLACK MAN WHO CONNED WEALTHY NEW YORKERS INTO BELIEVING THAT HE WAS AN IVY LEAGUE SCHOOL CHUM OF THEIR CHILDREN AND ALSO SIDNEY POITIER'S SON MR GUARE'S SATIRE DOES JUSTICE TO THIS REALLIFE ABSURDITY 9401110054 940111 BUSINESS BRIEF FREEPORTMCMORAN INC FULL OUTPUT AT SULFUR MINE WAS REACHED IN DECEMBER FREEPORTMCMORAN RESOURCE PARTNERS LP A UNIT OF NEW ORLEANSBASED FREEPORTMCMORAN INC SAID ITS MAIN PASS SULFUR MINE ACHIEVED FULL OUTPUT OF 5500 TONS A DAY IN DECEMBER ANALYSTS HAD EXPRESSED CONCERN THAT FREEPORTMCMORAN RESOURCE WOULDN'T BE ABLE TO BRING THE MINE UP TO FULL OUTPUT BY THE END OF 1993 AS INITIALLY PROJECTED BY THE COMPANY FREEPORTMCMORAN RESOURCE WHICH MAKES PHOSPHATE FERTILIZER AND MINES SULPHUR AND PHOSPHATE USED IN RAW MATERIALS OWNS 583 OF THE MAIN PASS MINE AND IS THE PROJECT'S OPERATOR THE MINE'S MINORITY OWNERS ARE IMC FERTILIZER GROUP NORTHBROOK ILL AND HOMESTAKE MINING CO SAN FRANCISCO 9401110053 940111 BUSINESS BRIEF REGAL COMMUNICATIONS CORP CHIEF FINANCIAL OFFICER INDEPENDENT AUDITOR RESIGN REGAL COMMUNICATIONS CORP FORT WASHINGTON PA SAID ITS CHIEF FINANCIAL OFFICER AND INDEPENDENT AUDITOR ACCOUNTING FIRM COOPERS & LYBRAND RESIGNED REGAL WHICH PRODUCES PROGRAMLENGTH COMMERCIALS SAID IN A STATEMENT THAT INTERNAL FINANCIAL CONTROL DEFICIENCIES AND OTHER ACCOUNTING ISSUES MAY AFFECT A PREVIOUSLY ESTIMATED LOSS OF 195 MILLION IN THE 1993 FISCAL YEAR ENDED SEPT 30 REGAL DOESN'T BELIEVE LOSSES WILL EXCEED THAT ESTIMATE THE COMPANY PREDICTED THAT IT WOULD POST NET INCOME OF 4 MILLION IN THE FIRST QUARTER OF FISCAL 1994 CHIEF FINANCIAL OFFICER BRUCE EDMONDSON RESIGNED AND REGAL NAMED IVAN INERFELD A FORMER PARTNER AT COOPERS & LYBRAND AS CHIEF OPERATING OFFICER AND INTERIM CHIEF FINANCIAL OFFICER A SPOKESMAN FOR COOPERS DECLINED TO COMMENT A REGAL SPOKESWOMAN SAID THE COMPANY HASN'T YET FILED DOCUMENTS REQUIRED BY THE SECURITIES AND EXCHANGE COMMISSION TO EXPLAIN THE RESIGNATION 9401110052 940111 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI LISA A RICKARD 38 WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF FEDERAL AFFAIRS OF THIS TRANSPORTATION SERVICES COMPANY SHE WILL RUN RYDER'S FEDERAL AFFAIRS OFFICE IN WASHINGTON PREVIOUSLY MS RICKARD WAS A PARTNER IN THE WASHINGTON LAW FIRM OF AKIN GUMP STRAUSS HAUER & FELD 9401110051 940111 BUSINESS BRIEF MARTIN MARIETTA CORP FEE FOR FAILED MARS CRAFT IS GIVEN BACK TO NASA MARTIN MARIETTA CORP ACCEPTING RESPONSIBILITY FOR THE FAILED MARS OBSERVER SPACECRAFT MISSION SAID IT PLANS TO RETURN AN ONORBIT PERFORMANCE FEE OF 173 MILLION TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE SPACECRAFT WAS BUILT BY GENERAL ELECTRIC CO'S FORMER ASTRO SPACE DIVISION WHICH WAS BOUGHT BY MARTIN MARIETTA LAST APRIL ULTIMATELY WE WERE THE ONES RESPONSIBLE FOR THE SPACECRAFT A MARTIN MARIETTA SPOKESMAN SAID THE SPOKESMAN SAID THAT MARTIN MARIETTA BETHESDA MD HAD BEEN ELIGIBLE FOR A PERFORMANCE FEE OF MORE THAN 21 MILLION BUT HAD ONLY RECEIVED 173 MILLION THE MONEY WILL BE RETURNED TO NASA'S JET PROPULSION LABORATORY IN CALIFORNIA THE DISAPPEARANCE OF THE SPACECRAFT LAST AUGUST WAS MOST LIKELY CAUSED BY A FUELLINE LEAK THAT SENT THE SPACECRAFT SPINNING OUT OF CONTROL ACCORDING TO A NASA REPORT RELEASED LAST WEEK THE MARS MISSION IS ESTIMATED TO HAVE COST NEARLY 1 BILLION INVESTIGATORS LAST WEEK FAILED TO PINPOINT BLAME FOR THE LOSS OF THE SPACECRAFT THE REPORT DID IDENTIFY DESIGN TECHNICAL AND MANAGEMENT PROBLEMS WITHIN NASA THAT COULD HAVE CONTRIBUTED TO ITS LOSS 9401110050 940111 BUSINESS BRIEF CYRIX CORP COMPANY AGREES TO STOP AD PARODY OF INTEL'S LOGO CYRIX CORP SAID IT AGREED TO STOP USING AN ADVERTISING LOGO THAT PARODIES A CORPORATE LOGO OF INTEL CORP CYRIX'S MAIN RIVAL INTEL SUED THE RICHARDSON TEXAS CHIP MAKER IN DECEMBER AFTER CYRIX BEGAN USING ITS LOGO AN OVAL SWIRL WITH THE WORD DITTO PRINTED INSIDE THE LOGO MIMICKED AN INTEL LOGO A SIMILAR SWIRL WITH THE WORDS INTEL INSIDE INSIDE WHICH IS PART OF INTEL'S HUGE MARKETING CAMPAIGN THAT URGES PERSONALCOMPUTER BUYERS TO SPECIFY INTEL CHIPS CYRIX WHICH MAKES CHIPS THAT RUN THE SAME SOFTWARE AS INTEL'S MICROPROCESSORS BEGAN USING ITS LOGO AS PART OF A BROADER CYRIX INSTEAD CAMPAIGN THAT SEEKS TO WOO BUYERS AWAY FROM INTEL BUT INTEL ARGUED IN A LAWSUIT IN FEDERAL COURT IN SAN FRANCISCO THAT THE CYRIX LOGO VIOLATES INTEL TRADEMARKS CYRIX SAID IT AGREED NOT TO USE THE LOGO OR ANY OTHERS THAT ARE CONFUSINGLY SIMILAR TO INTEL TRADEMARKS AND TO USE INTEL'S OWN LOGO ONLY IN COMPARATIVE ADVERTISING WE AGREED BASICALLY TO NOT MAKE FUN OF THEM SAID A CYRIX SPOKESWOMAN AN INTEL SPOKESMAN SAID THE SANTA CLARA CALIF COMPANY HAS ASKED THE COURT TO DISMISS THE CASE 9401110049 940111 BUSINESS BRIEF PACIFIC NUCLEAR SYSTEMS INC COMPANY CLOSES PURCHASE INVOLVING ABB ASEA BROWN PACIFIC NUCLEAR SYSTEMS INC FEDERAL WAY WASH SAID IT COMPLETED ITS 317 MILLION PURCHASE OF THREE UNITS OF US AND BRITISH SUBSIDIARIES OF ABB ASEA BROWN BOVERI LTD OF ZURICH SWITZERLAND THE COMPANY SAID IT WILL RECORD A RESTRUCTURING CHARGE IN THE FOURTH QUARTER OF 1993 TO COVER THE ACQUISITION OF THE UNITS ABB IMPELL CORP ABB GOVERNMENT SERVICES INC AND ABB IMPELL LTD BUT THAT THE AMOUNT OF THE CHARGE HASN'T BEEN FINALIZED PACIFIC ACQUIRED THE ABB UNITS WHICH PROVIDE ENGINEERING SUPPORT FOR THE UTILITY INDUSTRY AND CERTAIN GOVERNMENT AGENCIES IN EXCHANGE FOR 17 MILLION SHARES OF PACIFIC STOCK VALUED AT 14 MILLION AND 177 MILLION IN CASH SEPARATELY PACIFIC SAID IT HAS CHANGED ITS NAME TO VECTRA TECHNOLOGIES INC 9401110048 940111 MACY'S REPORTS DROP IN DECEMBER SALES RISE IN PRETAX PROFIT NEW YORK RH MACY & CO THE RETAILER OPERATING UNDER FEDERAL BANKRUPTCYLAW PROTECTION SAID SALES IN THE KEY DECEMBER SHOPPING PERIOD FELL 15 BUT OPERATING EARNINGS ROSE 30 MACY SAID ON A PRELIMINARY BASIS DECEMBER EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION TOTALED 2661 MILLION COMPARED WITH 2051 MILLION IN DECEMBER 1992 TOTAL SALES FOR MACY WHICH OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES AMONG OTHERS REACHED 118 BILLION FOR THE MONTH COMPARED WITH 120 BILLION FOR DECEMBER 1992 MACY'S EARNINGS HAVE EXCEEDED THE PROJECTIONS IN ITS BUSINESS PLAN IN 11 OF THE PAST 12 MONTHS AND MACY SAID THE IMPROVEMENT WAS DUE TO FURTHER CUTS IN OPERATING COSTS FEWER MARKDOWNS AND MORE TARGETED INVENTORY IN THE CHAIN STORES MACY SAID IT ENDED THE MONTH WITH 279 MILLION IN CASH IN BANK RESERVES 40 MILLION AHEAD OF INTERNAL PROJECTIONS THE COMPANY ALSO SAID IT HAD 475 MILLION OF AVAILABLE BANK CREDIT WHICH IT WILL DRAW ON TO BUILD MERCHANDISE INVENTORIES AS EXPECTED MACY'S REPORTED THAT DECEMBER SALES IN STORES OPEN MORE THAN ONE YEAR A KEY RETAILING INDICATOR WERE FLAT WITH THE PERIOD A YEAR EARLIER MACY SAID THAT ADJUSTED FOR THE RESTRUCTURING OF MACY'S ELECTRONICS BUSINESS SAMESTORE SALES ROSE 17 THE COMPANY IS ELIMINATING OR REORGANIZING ELECTRONICS DEPARTMENTS IN SOME STORES 9401110047 940111 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH US CLEARS WAY FOR SALES TO CHINA EXSOVIET LANDS THE COMMERCE DEPARTMENT CLEARED THE WAY FOR AMERICAN TELEPHONE & TELEGRAPH CO TO SELL HIGHSPEED OPTICALFIBER TRANSMISSION EQUIPMENT TO CHINA AND THE FORMER SOVIET REPUBLICS BUT AT&T WON'T BE ABLE TO MAKE ANY SALES TO THOSE COUNTRIES UNTIL AT LEAST MAY 9 THAT'S BECAUSE UNDER EXPORTCONTROL RULES THE US NOW MUST NEGOTIATE THE EASING OF EXPORT RESTRICTIONS WITH OTHER MEMBERS OF THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS THE COMMERCE DEPARTMENT FOUND THAT FIBEROPTIC EQUIPMENT SIMILAR TO THAT IN AT&T'S PROPOSAL IS AVAILABLE ALREADY TO CHINA AND RUSSIA FROM OTHER SUPPLIERS UNDER EXPORTCONTROL LAWS THAT FINDING IS NECESSARY BEFORE SALES OF FORMERLY RESTRICTED ITEMS CAN TAKE PLACE ON DEC 9 THE DEPARTMENT MADE A PRELIMINARY FINDING IN FAVOR OF AT&T SINCE THEN THAT DECISION HAS BEEN UNDER REVIEW IN INTERAGENCY MEETINGS INTELLIGENCE AND OTHER NATIONALSECURITY AGENCIES HAVE OPPOSED LIFTING THE BAN ON THE SALES AT&T COMMENDED THE CLINTON ADMINISTRATION FOR ITS COMMITMENT TO LIBERALIZE OUTMODED EXPORT CONTROLS 9401110046 940111 CREDIT RATINGS ETHYL CORP RICHMOND VA MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED ITS RATING ON SENIOR NOTES OF THIS CHEMICAL CONCERN TO BAA3 FROM SINGLEA3 AFTER A SIXMONTH REVIEW THE ACTION AFFECTS ABOUT 200 MILLION IN LONGTERM DEBT THE RATINGS AGENCY SAID THE DOWNGRADE REFLECTS ITS EXPECTATION THAT THE IMPENDING SPINOFF OF ETHYL'S CHEMICALS GROUP WILL HAVE A NEGATIVE IMPACT ON THE COMPANY'S DEBTPROTECTION CAPABILITIES MOODY'S SAID THE CHEMICAL GROUP ACCOUNTS FOR NEARLY HALF OF ETHYL'S SALES AND THE SPINOFF IS EXPECTED TO BE COMPLETED IN THE FIRST HALF OF THIS YEAR RITE AID CORP HARRISBURG PA MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE LONGTERM RATINGS OF THIS DRUGSTORE CHAIN UNDER REVIEW FOR POSSIBLE DOWNGRADE MOODY'S SAID THE DECISION COULD AFFECT ABOUT 890 MILLION IN LONGTERM DEBT THE RATINGS AGENCY SAID THE ACTION IS PROMPTED BY THE COMPANY'S ANNOUNCEMENT OF A BUYBACK OF AS MANY AS 22 MILLION SHARES THROUGH A DUTCH AUCTION MOODY'S ALSO CITED RITE AID'S DECISION TO SELL FOUR NONCORE BUSINESSES AND CLOSE 200 UNPROFITABLE STORES WHICH IT SAID WOULD RESULT IN PRETAX NONCASH CHARGES OF ABOUT 191 MILLION MOODY'S SAID THE COMBINED EFFECT OF THE DECISION WOULD WIPE OUT ABOUT HALF OF RITE AID'S EQUITY BASE 9401110044 940111 WHAT'S NEWS BUSINESS AND FINANCE THE DOW JONES INDUSTRIAL AVERAGE SOARED 4474 POINTS TO 386551 ITS FOURTH STRAIGHT RECORD AS INVESTORS GREW CONVINCED THAT SHORTTERM INTEREST RATES WILL REMAIN LOW ECONOMICALLY SENSITIVE STOCKS LED THE ADVANCE AS THEY HAD DONE IN THE PRIOR THREE SESSIONS BOND PRICES ENDED MODERATELY LOWER WITH THE TREASURY'S BENCHMARK 30YEAR ISSUE LOSING OVER 1/4 POINT ITS YIELD INCREASED TO 624 WESTINGHOUSE IS SET TO ANNOUNCE A RESTRUCTURING PLAN THAT INCLUDES WRITEDOWNS LAYOFFS AND A CHARGE OF ABOUT 15 BILLION IN THE FIRST MAJOR ACTION BY ITS NEW CHAIRMAN MICHAEL JORDAN FIRST FIDELITY WON PERMISSION TO CONSOLIDATE ITS BRANCHES IN NEW JERSEY AND PENNSYLVANIA INTO ONE SYSTEM FROM THE COMPTROLLER OF THE CURRENCY THE DECISION IS THE FIRST OF ITS KIND VIACOM SHARES PLUNGED 67 ON NEWS OF ITS PROPOSED TAKEOVER OF BLOCKBUSTER A MOVE AIMED AT ALLOWING VIACOM TO TOP RIVAL QVC'S 98 BILLION BID FOR PARAMOUNT BUT THE 275 DECLINE IN VIACOM NONVOTING CLASS B SHARES TO 3825 REDUCED THE VALUE OF VIACOM'S OFFER BY 153 MILLION TO 93 BILLION FHP INTERNATIONAL SIGNED A PRELIMINARY ACCORD TO BUY TAKECARE FOR 829 MILLION IN CASH AND STOCK SEEKING TO DOUBLE THE NUMBER OF MEMBERS SERVED BY ITS HMOS TO OVER 16 MILLION HEALTHTRUST WILL BUY CLOSELY HELD EPIC HOLDINGS FOR 277 MILLION AND THE ASSUMPTION OF 727 MILLION IN DEBT ATLANTIC RICHFIELD PLANS TO TAKE A LARGERTHANEXPECTED 450 MILLION CHARGE RELATED TO THE REORGANIZATION OF ITS DOMESTIC OIL AND GAS OPERATIONS SOME MERGERS THAT GENERALLY WOULD VIOLATE FEDERAL ANTITRUST GUIDELINES MAY BE ALLOWED IF THEY FOSTER INNOVATION SAID ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST BIG THREE AUTO STOCKS SURGED ON EXPECTATIONS OF STRONG FOURTHQUARTER PROFITS AND AN EVEN BETTER 1994 GM ROSE 1375 TO 5925 FORD 2625 TO 6725 AND CHRYSLER 1625 TO 5875 AS MANY ANALYSTS RAISED THEIR EARNINGS FORECASTS UPON RETURNING FROM LAST WEEK'S UPBEAT DETROIT AUTO SHOW THE PHARMACEUTICAL INDUSTRY PLANS TO LAUNCH ITS FIRST NATIONAL TV AD CAMPAIGN NEXT WEEK THE ADS ARE DESIGNED TO IMPROVE A REPUTATION BRUISED BY CHARGES OF EXCESSIVE PRICING POLICIES TIME WARNER'S ATLANTIC RECORDS DIVISION SAID IT WILL NAME DANNY GOLDBERG TO THE VACANT PRESIDENT'S POST CRUDE OIL PRICES PLUNGED BELOW 15 A BARREL AMID THE GROWING BELIEF THAT OPEC MINISTERS WON'T MEET ANYTIME SOON TO HAMMER OUT PRODUCTION CUTS SEARS IS EXPANDING ITS PRESENCE IN NARROW SPECIALTY CATALOGS ONE YEAR AFTER ANNOUNCING PLANS TO STOP SELLING VIA ITS FAMOUS BIG BOOK CATALOG THE SUPREME COURT AGREED TO CONSIDER WHETHER CONGRESS CAN REINSTATE CERTAIN SECURITIESFRAUD SUITS DISMISSED IN RESPONSE TO A 1991 RULING THE CASE WON'T AFFECT MANY DISPUTES BUT COULD DECIDE THE BASIC CONSTITUTIONAL QUESTION OF HOW FAR CONGRESS MAY GO IN CHANGING FINAL JUDGMENTS THE IRS AND SEC DECIDED TO COORDINATE THEIR EFFORTS TO POLICE THE TAXEXEMPT BOND INDUSTRY THE AGREEMENT TO JOIN FORCES COMES AT A TIME WHEN BOTH AGENCIES HAVE STEPPED UP SCRUTINY OF THE MUNICIPALBOND MARKET BONDS LEHMAN BROTHERS TREASURY INDEX 560153 OFF 504 COMMODITIES OIL 1467 A BARREL OFF 65 CENTS DOW JONES FUTURES INDEX 14064 OFF 055 SPOT INDEX 12744 OFF 104 DOLLAR 11225 YEN UP 035 17346 MARKS UP 00073 9401110043 940111 REDSKINS TACKLE THE NFL'S UNION BY REED LARSON HAIL TO THE REDSKINS TWENTYSIX WASHINGTON REDSKINS HAVE EARNED THAT CHEER BY EXERCISING THEIR RIGHT TO WORK WITHOUT PAYING FORCED UNION DUES TO THE NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION EVEN MORE IMPORTANT THESE PLAYERS EXPOSED THE SCANDAL OF UNION OFFICIALS IMPOSING CONTRACTS ON EMPLOYEES DETRIMENTAL TO THEIR OWN INTERESTS AND CALLING IT EXCLUSIVE REPRESENTATION AS THE READER MAY KNOW THE REDSKINS PLAYERS REFUSED TO PAY THEIR NFLPA DUES TO PROTEST THE RECENT BARGAIN BETWEEN THE NFL OWNERS AND THE UNION WHICH HAS MONOPOLY BARGAINING POWERS OR EXCLUSIVE REPRESENTATION OVER ALL PROFESSIONAL FOOTBALL PLAYERS WHILE THEY PLAY THEIR HOME GAMES IN WASHINGTON DC THE REDSKINS ACTUALLY SPEND MOST OF THEIR TIME PRACTICING AT REDSKINS PARK IN ASHBURN VA AND SINCE ASHBURN IS THEIR PREDOMINANT JOB SITE THE REDSKINS PLAYERS ARE FREE TO DECIDE FOR THEMSELVES WHETHER THE UNION DESERVES THEIR FINANCIAL SUPPORT THANKS TO VIRGINIA'S RIGHTTOWORK LAW FOR EXERCISING THEIR RIGHTS UNION LAWYERS DRAGGED THE PLAYERS BEFORE THEIR HANDPICKED ARBITRATOR THE WEEK AFTER CHRISTMAS AND WHEN THAT ARBITRATOR DUTIFULLY GRANTED THE UNION LAWYERS' CLAIMS THE PLAYERS FACED THE SAME DEMAND BIG LABOR MAKES OF MILLIONS OF EMPLOYEES IN THE 29 NONRIGHTTOWORK STATES YOUR MONEY OR YOUR JOB THAT'S RIGHT MOST OF THE REDSKINS' 47MAN ROSTER COULD HAVE BEEN SUSPENDED FOR THEIR FINAL GAME WITH THE MINNESOTA VIKINGS ON NEW YEAR'S EVE FORTUNATELY REDSKINS TIGHT END TERRY ORR CALLED THE NATIONAL RIGHT TO WORK LEGAL DEFENSE FOUNDATION AND THE DAY BEFORE THE GAME FOUNDATION ATTORNEYS WON AN INJUNCTION IN A LOUDOUN COUNTY VA COURT THAT FOUND THAT THE REDSKINS PLAYERS WORKED PRIMARILY IN VIRGINIA AND WERE PROTECTED BY VIRGINIA'S RIGHTTOWORK LAW FROM PAYING TRIBUTE TO THE NFLPA LATER THAT EVENING FEDERAL DISTRICT JUDGE JOYCE HENS GREEN AGREED WITH THE FOUNDATION ATTORNEYS' ARGUMENT THAT THE REDSKINS PLAYERS' PRIMARY EMPLOYMENT SITUS IS AT REDSKINS PARK IN VIRGINIA AND INTERCEPTED A LASTSECOND ATTEMPT BY UNION LAWYERS TO GUT THE VIRGINIA COURT'S RULING THE NEXT DAY THE WASHINGTON REDSKINS TOOK THE FIELD WITH THEIR FULL 47MAN ROSTER AND THE RIGHT TO WORK WITHOUT BEING FORCED TO PAY UNION DUES WITH THE NATIONAL RIGHT TO WORK LEGAL DEFENSE FOUNDATION'S HELP TERRY ORR AND HIS FELLOW PLAYERS WON THE FIRST ROUND BUT TO DISCOVER THE ROOT OF THIS INJUSTICE YOU MUST GO ALL THE WAY BACK TO 1935 WHEN THE NEW DEAL CONGRESS AND FRANKLIN D ROOSEVELT WROTE THE NATIONAL LABOR RELATIONS ACT ACCEDING TO THE DEMANDS OF AMERICAN FEDERATION OF LABOR PRESIDENT WILLIAM GREEN AND OTHER UNION OFFICIALS FDR AND THE CONGRESS GAVE UNION OFFICIALS THE POWER TO FORCE EMPLOYEES TO ACCEPT THE UNION'S BARGAINING AUTHORITY EVEN IF THE EMPLOYEES VOTED AGAINST THE UNION AND WITH THIS MONOPOLY BARGAINING PRIVILEGE UNION OFFICIALS CAN CONTROL THE TERMS AND CONDITIONS OF EMPLOYMENT IN AN ENTIRE INDUSTRY SUCH AS AUTO MANUFACTURING OR PRO FOOTBALL SO WHEN THE NFLPA AGREED TO A CAP ON A TEAM'S PAYROLL IN EXCHANGE FOR FREE AGENCY LAST WINTER THE REDSKINS BECAME THE FIRST VICTIM OF THE SALARY CAP ACCORDING TO GENERAL MANAGER CHARLEY CASSERLY THAT WAS BECAUSE THE REDSKINS' PAYROLL WAS AMONG THE HIGHEST IN THE NFL AND WOULD HAVE TO BE SLASHED TO GET THE TEAM UNDER THE CAP THAT MEANT A LOT OF REDSKINS PLAYERS WOULD HAVE TO EITHER ACCEPT LARGE PAY REDUCTIONS OR LEAVE THE REDSKINS AND TAKE THEIR CHANCES WITH OTHER CLUBS TRYING TO KEEP THEIR OWN PAYROLLS UNDER THE SALARY CAP SO IT'S NOT AT ALL SURPRISING THAT MANY OF THE REDSKINS HAVE NO WISH TO PAY THE NFLPA FOR A CONTRACT LIKELY TO LEAVE THEM WITH LESS MONEY AND LESS JOB SECURITY SUCH IS THE RESULT OF UNION OFFICIALS' FOOLISH ASSUMPTION THAT THEY CAN ACT AS MONOPOLY BARGAINING AGENTS BECAUSE ALL WORKERS DESIRE ESSENTIALLY THE SAME BENEFITS IT'S EASY TO SEE HOW WRONG THIS IS IN ANY GIVEN WORKPLACE YOU MAY HAVE YOUNGER WORKERS SEEKING TO MAXIMIZE THEIR IMMEDIATE PAY COMPETING WITH OLDER EMPLOYEES SEEKING MAXIMUM PENSION BENEFITS THE LIST OF OTHER SUCH CONFLICTS IS AS LONG AS THE MUTUALLY EXCLUSIVE INTERESTS OF INDIVIDUAL WORKERS FROM THE BUYING OF PROPERTY TO LEGAL ACTION THERE IS A TIMEHONORED RESPECT STRETCHING BACK TO ENGLISH COMMON LAW FOR THE INDIVIDUAL'S RIGHT TO CHOOSE HIS OWN AGENT TO REPRESENT HIM ONLY IN THIS CENTURY HAVE UNION OFFICIALS MANAGED TO CARVE OUT A LICENSE TO ACT AS AGENT FOR MILLIONS OF WORKING AMERICANS AGAINST THEIR EXPRESS WISHES FOR THE WASHINGTON REDSKINS THESE AGENTS NEGOTIATED A CONTRACT THAT WILL REDUCE THEIR SALARIES AND MAKE THEIR JOBS LESS SECURE AND THE NFLPA THREATENED TO KEEP THEM FROM WORKING AT ALL IF THEY REFUSED TO PAY FOR THE LOUSY BARGAINING THAT'S SOME DEAL UNION OFFICIALS WORKED OUT FOR THE PLAYERS THEY CLAIM TO REPRESENT MR LARSON IS PRESIDENT OF THE NATIONAL RIGHT TO WORK LEGAL DEFENSE FOUNDATION A CHARITABLE ORGANIZATION PROVIDING FREE LEGAL AID TO EMPLOYEES SUFFERING FROM THE ABUSES OF COMPULSORY UNIONISM 9401110042 940111 WHAT'S NEWS WORLDWIDE CLINTON ANNOUNCED A UKRAINE NUCLEAR PACT AND NATO PLAN FOR EAST EUROPE THE PRESIDENT SAID THAT THE WEST HAD TAKEN TWO GIANT STEPS TOWARD GLOBAL SECURITY UNDER THE UKRAINE ACCORD THE US WILL BUY URANIUM FROM UKRAINE AND PROVIDE THAT COUNTRY WITH AID WHILE THE WEAPONS WILL BE SHIPPED TO RUSSIA FOR DESTRUCTION THE USINSPIRED PARTNERSHIP FOR PEACE PROPOSAL OFFERS MILITARY COOPERATION TO EASTERN EUROPEAN NATIONS BUT STOPS SHORT OF LETTING THEM JOIN NATO IN THE NEAR FUTURE NATO WAS POISED TO ADOPT TWO INITIATIVES TODAY SIGNALING A SHIFT IN THE ALLIANCE'S STRUCTURE FIRST THE US IS READY TO ALLOW EUROPEANS TO USE NATO EQUIPMENT FOR THEIR OWN MILITARY OPERATIONS NATO ALSO WILL ESTABLISH AN ENTITY TO CONDUCT PEACEKEEPING HUMANITARIAN AND OTHER MILITARY ACTIVITIES THE UPBEAT MOOD AT THE BRUSSELS SUMMIT WAS CLOUDED BY LINGERING DIVISION OVER HOW FAR THE WEST SHOULD GO TO STOP THE WAR IN BOSNIA SHELLS CRASHED INTO THE CENTER OF SARAJEVO WOUNDING 12 PEOPLE BUT RELIEF AGENCIES RECEIVED SERB PROMISES TO STOP SHELLING THE CITY'S AIRPORT PAVING THE WAY FOR RESUMPTION OF A CRUCIAL AIRLIFT OF SUPPLIES IN CENTRAL BOSNIA OUTGUNNED CROAT FORCES TRIED TO HOLD OFF AN OFFENSIVE BY MUSLIMLED TROOPS THE SUPREME COURT LET STAND A RULING THAT ALLOWED THE NORTH AMERICAN FREE TRADE AGREEMENT TO WIN CONGRESSIONAL APPROVAL WITHOUT A FORMAL STATEMENT ON ITS LIKELY ENVIRONMENTAL EFFECTS THE COURT REJECTED ARGUMENTS BY TWO CITIZENS' GROUPS CONTENDING THAT THE WHITE HOUSE SHOULD HAVE PREPARED AN ENVIRONMENTAL ASSESSMENT THE HIGH COURT REFUSED TO REVIVE A CHALLENGE TO THE WAY OHIO COURTS ENFORCE A LAW THAT ALLOWS TEENS SEEKING ABORTIONS TO NOTIFY A JUDGE AS AN ALTERNATIVE TO NOTIFYING AT LEAST ONE PARENT A LAWSUIT HAD CHARGED THAT STATE COURT JUDGES WRONGLY DENIED WAIVERS OF THE PARENTNOTIFICATION REQUIREMENT FOR ARBITRARY AND IRRATIONAL REASONS PRESIDENT YELTSIN'S BACKERS THREATENED TO PROSECUTE NATIONALIST POLITICIAN ZHIRINOVSKY FOR MAKING INFLAMMATORY STATEMENTS ON THE EVE OF THE OPENING OF RUSSIA'S FIRST POSTSOVIET PARLIAMENT THE PROYELTSIN RUSSIA'S CHOICE PARTY SAID IT WOULD TRY TO MAKE LAWMAKERS FACE CHARGES FOR STATEMENTS INCITING VIOLENCE MEXICO'S INTERIOR MINISTER RESIGNED IN THE WAKE OF A PEASANT UPRISING IN THE SOUTHERN STATE OF CHIAPAS PATROCINIO GONZALEZ A FORMER GOVERNOR OF CHIAPAS HAD BEEN CITED IN REPORTS ON RIGHTS ABUSES SEPARATELY MEXICO'S STOCK MARKET SUFFERED ITS WORST DROP IN MORE THAN FOUR YEARS ISRAELIPLO NEGOTIATIONS RESUMED IN EGYPT AND ISRAEL'S FOREIGN MINISTER SAID THE TWO SIDES MAY NOT MEET AN APRIL 13 DEADLINE SET FOR THE FULL WITHDRAWAL OF ISRAELI TROOPS FROM GAZA AND JERICHO THE CHIEF PALESTINIAN DELEGATE WAS MORE OPTIMISTIC HOWEVER SAYING AN ACCORD COULD BE REACHED WITHIN TWO TO THREE WEEKS CLINTON ACCEPTED MORTON HALPERIN'S REQUEST TO WITHDRAW HIS NAME FROM CONSIDERATION FOR A TOP PENTAGON POST THE PRESIDENT SAID HE ACCEDED TO THE REQUEST WITH REAL REGRET THE NOMINATION OF HALPERIN TO HEAD PEACEKEEPING INITIATIVES AT THE DEFENSE DEPARTMENT HAD COME UNDER FIRE FROM MANY SENATE CONSERVATIVES JAUNDICE CAN BE PREVENTED IN NEWBORNS WITH A SINGLE INJECTION OF AN EXPERIMENTAL DRUG DEVELOPED AT ROCKEFELLER UNIVERSITY IN NEW YORK A TEAM OF US AND GREEK RESEARCHERS SAID THEIR REPORT APPEARS IN THE CURRENT ISSUE OF THE JOURNAL PEDIATRICS VIETNAM WILL BEGIN TALKS WITH THE US THIS MONTH ON ALLEGED HUMANRIGHTS ABUSES US AND VIETNAMESE OFFICIALS SAID THE RIGHTS ISSUE IS EXPECTED TO BE A FACTOR IN ANY LONGTERM NORMALIZATION OF RELATIONS BETWEEN THE TWO NATIONS THOUGH IT HAS BEEN OVERSHADOWED BY US PRESSURE TO OBTAIN A FULL ACCOUNTING OF MISSING SERVICEMEN CAMBODIAN SOLDIERS HAVE SURROUNDED THE KHMER ROUGE'S SECONDLARGEST BASE BUT ARE HOLDING OFF FROM A THREATENED ATTACK A SENIOR GOVERNMENT OFFICIAL SAID BUT A KHMER ROUGE OFFICIAL DISPUTED THAT ACCOUNT SAYING THE GUERRILLA GROUP DROVE BACK TROOPS TRYING TO ADVANCE ON THE BASE AZERBAIJANI UNITS RESUMED THEIR OFFENSIVE IN THE ENCLAVE OF NAGORNOKARABAKH WITH HUNDREDS OF SOLDIERS KILLED AS THEY ADVANCED ON ARMENIAN STRONGHOLDS ARMENIAN REPORTS SAID 9401110041 940111 BUSINESS BRIEF AMERICAN TELECASTING INC PURCHASE OF TELEVISION ASSETS FOR 2075 MILLION PLANNED AMERICAN TELECASTING INC SAID IT HAS SIGNED LETTERS OF UNDERSTANDING TO BUY A SERIES OF WIRELESS TELEVISION SYSTEMS AND CHANNEL RIGHTS FOR 208 MILLION IN CASH AND STOCK THE PURCHASE FROM FAMILY ENTERTAINMENT NETWORK INC OF MITCHELL SD AND WIRELESS ENTERTAINMENT NETWORK INC OF SCOTTSBLUFF NEB INCLUDES SEVEN WIRELESS OPERATING SYSTEMS SERVING ABOUT 13000 CUSTOMERS FAMILY ENTERTAINMENT AND WIRELESS ENTERTAINMENT BOTH CLOSELY HELD JOINTLY OWN THE SYSTEMS THROUGH A PARTNERSHIP AMERICAN TELECASTING A COLORADO SPRINGS COLO COMPANY THAT WENT PUBLIC LAST MONTH IN A 54 MILLION INITIAL OFFERING SAID IT WILL PAY ABOUT HALF THE PURCHASE PRICE IN STOCK WITH THE BALANCE EXPECTED TO BE FINANCED THROUGH BANK BORROWINGS COMPLETION OF THE DEALS IS SUBJECT TO SHAREHOLDER APPROVAL BANK FINANCING AND A DEFINITIVE AGREEMENT 9401110040 940111 BUSINESS BRIEF KERRMCGEE CORP UNIT ACQUIRES 245 INTEREST IN SOUTH CHINA SEA OIL FIELD KERRMCGEE CORP SAID A UNIT ACQUIRED A 245 INTEREST IN A SOUTH CHINA SEA OIL FIELD SUBJECT TO APPROVAL BY THE CHINA NATIONAL OFFSHORE OIL CORP KERRMCGEE AN OKLAHOMA CITY ENERGY AND CHEMICAL CONCERN SAID KERRMCGEE LIUHUA LTD BOUGHT THE INTEREST IN THE LIUHUA 111 FIELD FROM AMOCO CORP FOR AN UNDISCLOSED AMOUNT AMOCO RETAINS A 245 INTEREST IN THE FIELD AND CHINA NATIONAL OWNS 51 THE FIELD 135 MILES SOUTHEAST OF HONG KONG IS ESTIMATED TO HAVE MORE THAN ONE BILLION BARRELS OF OIL MAKING IT THE LARGEST RESERVOIR YET DISCOVERED IN THE SOUTH CHINA SEA KERRMCGEE SAID IT EXPECTS PRODUCTION OF THE FIELD TO COMMENCE IN 1996 AND ADD 16000 BARRELS OF OIL A DAY TO THE COMPANY'S PRODUCTION BY 1997 9401110039 940111 BUSINESS BRIEF LUKENS INC CHARGE OF ABOUT 12 MILLION TO CAUSE '93 4THPERIOD LOSS LUKENS INC SAID IT WOULD TAKE A CHARGE OF ABOUT 12 MILLION OR 80 CENTS A SHARE FOR THE 1993 FOURTH QUARTER WHICH WILL CAUSE A LOSS FOR THE PERIOD WITHOUT THE CHARGE TO COVER A PREVIOUSLY ANNOUNCED WORKFORCE REDUCTION THE STEELMAKER SAID EARNINGS WOULD BE IN THE RANGE OF 25 CENTS TO 30 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 85 MILLION OR 55 CENTS A SHARE FOR THE YEARAGO PERIOD THE COMPANY EXPECTS TO REPORT A PROFIT FOR THE YEAR BEFORE THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES SAID RW VAN SANT LUKENS CHAIRMAN AND CHIEF EXECUTIVE BASED IN COATESVILLE PA THE COMPANY SAID MARKET CONDITIONS SIGNFICANTLY WEAKENED FOURTHQUARTER OPERATING RESULTS HIGHER SCRAP COSTS LAGGING PRICES AND A LESS FAVORABLE PRODUCT MIX CONTINUED TO ERODE MARGINS AT LUKENS STEEL WHILE THE WASHINGTON STEEL UNIT ALSO FACED SOME PRICE SOFTENING IN THE FACE OF HIGHER STAINLESS IMPORTS ON THE POSITIVE SIDE HOWEVER THE COMPANY SAID THAT ORDER RATES PRODUCTIVITY AND CUSTOMER SERVICE LEVELS REMAINED STRONG 9401110038 940111 BUSINESS BRIEF VIE DE FRANCE CORP VIRGINIA COMPANY IS IN TALKS TO SELL RESTAURANT DIVISION VIE DE FRANCE CORP SAID IT IS IN TALKS TO SELL ITS RESTAURANT DIVISION TO A THIRD PARTY IT DECLINED TO IDENTIFY THE MCLEAN VA RESTAURANT AND CULINARY PRODUCTS COMPANY SAID THE RESTAURANT DIVISION HAD ABOUT 28 MILLION IN SALES IN FISCAL 1993 COMPARED WITH TOTAL COMPANY REVENUE OF 38 MILLION OTHER THAN THE RESTAURANT BUSINESS VIE DE FRANCE HAS A CULINARY PRODUCTS DIVISION THAT CONCENTRATES ON THE WHOLESALE MARKET A SPOKESMAN SAID SALES AT ITS 31 RESTAURANTS HAVE BEEN SLUGGISH WHILE THE CULINARY PRODUCTS UNIT HAS BEEN RECORDING STRONG ANNUAL SALES GAINS IN THE FIRST QUARTER ENDED SEPT 18 THE COMPANY HAD A NET LOSS OF 310000 OR TWO CENTS A SHARE ON SALES OF 78 MILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY VIE DE FRANCE FELL 25 CENTS TO 525 9401110037 940111 SPEAKING OF BUSINESS THE FED IS ARMED AND READY BY LINDLEY H CLARK MOST ECONOMISTS NOW SEEM TO AGREE THAT THE FEDERAL RESERVE SYSTEM IS GETTING SET TO TIGHTEN MONEY PRESUMABLY BY SLOWING THE GROWTH OF THE MONEY SUPPLY AND RAISING THE FEDERAL FUNDS RATE THE FEE CHARGED ON SHORTTERM LOANS OF BANK RESERVES THE MOVE WOULD BE DESIGNED TO SEND A MESSAGE THE ECONOMY IS MOVING FAST ENOUGH THAT AN UPTURN IN INFLATION HAS BECOME A POSSIBILITY NOT EVERYONE AGREES WITH THAT MESSAGE OF COURSE THE CLINTON ADMINISTRATION SCOFFS AT THE TALK OF HIGHER INFLATION AND ARGUES THAT THE ECONOMY NEEDS LOWER NOT HIGHER INTEREST RATES THOSE WHO FEAR INFLATION WOULD LIKE TO SEE THE FED ACT BUT SOME OF THEM WONDER WHETHER THE CENTRAL BANK IS LOSING CONTROL THEY ARGUE THAT MUTUAL FUNDS HAVE REPLACED BANK DEPOSITS AS THE MAIN CHANNEL FOR SAVINGS WHILE BORROWERS ARE LIKELY TO SHUN THEIR FRIENDLY LOCAL BANK AND SEEK CREDIT FROM A MORTGAGE COMPANY OR THE COMMERCIAL PAPER MARKET THEY FEAR THAT THE DIMINISHED ROLE OF BANKS MAY HAVE REDUCED THE FED'S ABILITY TO CONTROL THE ECONOMY IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER DISCUSSED IN THE NBER DIGEST A COUPLE OF UNIVERSITY OF CALIFORNIA ECONOMISTS SAY IT JUST ISN'T SO CHRISTINA AND DAVID ROMER NOTE THAT THE FEDERAL RESERVE FIGHTS INFLATION BY TRYING TO REDUCE AGGREGATE DEMAND ON SEVERAL OCCASIONS SINCE WORLD WAR II THE FED FELT THAT IT WASN'T ENOUGH MERELY TO RAISE THE FUNDS RATE AND SLOW THE GROWTH OF THE MONEY SUPPLY THROUGH OPEN MARKET OPERATIONS SO IT RAISED RESERVE REQUIREMENTS OR IMPOSED CREDIT CONTROLS IN 1947 THE CENTRAL BANK RESORTED TO AN OPENMOUTH POLICY IT URGED BANKERS TO EXERCISE EXTREME CAUTION IN THEIR LENDING POLICIES AND IN COOPERATION WITH OTHER REGULATORS SUCCESSFULLY PRESSED CONGRESS TO IMPOSE LEGAL RESTRICTIONS ON CONSUMER LOANS PEOPLE WHO WORRY ABOUT SO MUCH LENDING GOING ON OUTSIDE THE BANKING SYSTEM TEND TO FORGET THAT MORTGAGE FIRMS AND THE COMMERCIAL PAPER MARKET UNLIKE THE BANKING SYSTEM CAN'T CREATE MONEY NONBANK LENDERS ARE STIFF COMPETITION FOR THE BANKS BUT AT SOME POINT THEY MAY HAVE TO TURN TO THE BANKS FOR FUNDS THE BANKS STILL PLAY A CENTRAL ROLE IN LENDING THE GREATER COMPETITION FOR CONSUMER DEPOSITS FROM MUTUAL FUNDS AND OTHERS MAY HAVE INCREASED THE IMPORTANCE OF RESERVE REQUIREMENTS THESE REQUIREMENTS AFFECT THE PROFIT THE BANKS CAN MAKE WITH ANY FUNDS OBTAINED AT A GIVEN RATE OF INTEREST IN THE CURRENT COMPETITIVE SITUATION THE RESERVE REQUIREMENTS MAY HAVE AN EVEN LARGER IMPACT ON THE BANKS' COST OF FUNDS THAN THEY HAD IN EARLIER TIMES SO THE FEDERAL RESERVE IS ARMED AND READY TO FIGHT INFLATION WHAT WEAPONS IS IT LIKELY TO USE AS THE UNIVERSITY OF CALIFORNIA ECONOMISTS SAY THE FEDERAL RESERVE IN RECENT YEARS HAS BECOME MORE WILLING TO LET HIGH INTEREST RATES ALONE RATION BANK CREDIT AND HAS STOPPED TAKING ACTIONS TO DIRECTLY RESTRICT CREDIT IN 198182 AND 1988 THE FED ACHIEVED THE ANTIINFLATION RESULTS IT SOUGHT WITH MONETARY TIGHTENING ALONE IT'S NOT THAT THE FED DOUBTS THAT DIRECT CREDIT RESTRAINTS ARE POWERFUL IT'S JUST THAT RESEARCH HAS INDICATED THAT THE INTEREST RATE IMPACT OF MONETARY POLICY IS MORE POWERFUL BEYOND THAT IT'S DIFFICULT TO LAUNCH A MODERATE DIRECT ATTACK ON CREDIT IF THE FED TAKES THE OPENMOUTH ROUTE CAREFULLY PUTTING CALM WORDS IN ITS ANTICREDIT STATEMENT FEW PEOPLE WILL PAY ATTENTION TO THE MODERATION WHAT WILL COME THROUGH IS THE FACT THAT THE FEDERAL RESERVE IS SO WORRIED THAT IT HAS GONE PUBLIC WHAT WILL IT DO NEXT IF THE FED FOR SOME REASON SHOULD DECIDE THAT CREDIT CONTROLS WOULD BE A DANDY IDEA IT WOULD HAVE TO GET CONGRESS TO BACK THE NOTION THAT'S ABOUT AS LIKELY AS GETTING HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ TO AGREE THAT THE FED IS BEAUTIFULLY RUN AND NEEDS NO HELP AT ALL FROM HIS COMMITTEE GIVEN THE WHITE HOUSE BELIEF THAT INFLATION IS A NONEXISTENT PROBLEM THE FEDERAL RESERVE WILL HAVE TO GO IT ALONE IN WASHINGTON THAT'S A SITUATION FOR WHICH THE FED IS IDEALLY PREPARED IN THE PAST YEAR EVEN MONEYWATCHING ECONOMISTS HAVEN'T BEEN ABLE TO AGREE ON WHETHER THE FED HAS BEEN TIGHT OR EASY IF NO ONE KNOWS WHAT YOU'RE DOING IT'S A LITTLE EASIER TO DO WHAT YOU PLEASE WHAT IS LIKELY TO PLEASE THE FEDERAL RESERVE THIS SPRING WILL BE A SLOW MOVE TOWARD TIGHTER MONEY THE FED HAS BEEN PERMITTING A SLOWER GROWTH OF BANK RESERVES AND THE MONEY MARKETS HAVE REFLECTED THIS WITH A MODEST RISE IN INTEREST RATES THE CENTRAL BANK AT SOME POINT WILL RECOGNIZE THE UPWARD TREND WITH A SMALL RISE IN THE FUNDS RATE IN PREVIOUS ANTIINFLATION ATTACKS SINCE WORLD WAR II THE FED HAS APPEARED WILLING TO ACCEPT A RECESSION IT PRESUMABLY DOESN'T WANT ONE NOW BUT THAT MAY DEPEND ON HOW EFFECTIVE ITS SLOW AND EASY APPROACH TURNS OUT TO BE 9401110036 940111 BUSINESS BRIEF UNISYS CORP TIME WARNER UNIT MAY USE FIRM'S DEFENSE TECHNOLOGY TIME WARNER ENTERTAINMENT'S TIME WARNER CABLE GROUP IS CONSIDERING USING DEFENSE TECHNOLOGY DEVELOPED BY UNISYS CORP FOR INTERACTIVE CABLETELEVISION NETWORKS UNISYS SAID THE UNISYS TECHNOLOGY WOULD MAKE MORE EFFICIENT USE OF CABLE WIRING AND PROVIDE GREATER SECURITY SOLVING TWO KEY ISSUES CHALLENGING THE INTERACTIVE TELEVISION INDUSTRY A UNISYS SPOKESMAN SAID TIME WARNER INC UNIT IS WEIGHING POSSIBILITIES FOR BOTH WIRELESS AND CABLE NETWORK TRANSMISSIONS OF SPREAD SPECTRUM AS THE TECHNOLOGY IS KNOWN SPREAD SPECTRUM TAKES DIGITAL INFORMATION AND SCATTERS IT IN A SEEMINGLY RANDOM PATTERN USING LOWPOWER SIGNALS IT WORKS OVER A RANGE OF FREQUENCIES MAKING IT MORE SECURE AND LESS SUSCEPTIBLE TO BACKGROUND INTERFERENCE THAN OTHER SYSTEMS CABLE TELEVISION LABORATORIES INC A CABLEINDUSTRY RESEARCHANDDEVELOPMENT CONSORTIUM IS DOING THE TESTING 9401110035 940111 BUSINESS BRIEF CAROLINA FREIGHT CORP LOSS TO EXCEED ESTIMATES COMPANY SUSPENDS DIVIDEND CAROLINA FREIGHT CORP CHERRYVILLE NC SAID ITS EXPECTS TO REPORT A WIDERTHANANTICIPATED FOURTHQUARTER LOSS AND SUSPENDED THE DIVIDEND ON ITS COMMON STOCK ANALYSTS HAD BEEN PROJECTING A LOSS OF ABOUT 10 CENTS A SHARE FOR THE FINAL QUARTER OF 1993 THE TRUCKING COMPANY DECLINED TO SAY HOW MUCH LARGER THE LOSS WOULD BE BUT IT SAID THE DEFICIT WOULD BE NARROWER THAN THE YEAREARLIER LOSS OF 91 CENTS A SHARE IN THE FOURTH QUARTER OF 1992 CAROLINA FREIGHT REPORTED A LOSS OF 6 MILLION ON REVENUE OF 2593 MILLION THE QUARTERLY DIVIDEND HAD BEEN FIVE CENTS A SHARE 9401110034 940111 WESTINGHOUSE TO RESTRUCTURE TAKE A CHARGE TOTAL MAY BE 15 BILLION NEW CEO SAID TO PLAN WRITEDOWNS LAYOFFS BY ERLE NORTON AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP IS EXPECTED TO ANNOUNCE A RESTRUCTURING PLAN THAT INCLUDES WRITEDOWNS LAYOFFS AND A CHARGE OF ABOUT 15 BILLION IN ITS NEW CHAIRMAN'S FIRST MAJOR ACTION THE COMPANY IS EXPECTED TO DISCLOSE THE CHARGE TODAY WHEN IT HAS SCHEDULED A MEETING WITH SECURITIES ANALYSTS IN NEW YORK MICHAEL H JORDAN'S PRESENTATION WILL BE HIS FIRST BEFORE ANALYSTS SINCE TAKING OVER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTINGHOUSE JUNE 30 HE SUCCEEDED PAUL E LEGO WHO RESIGNED A YEAR AGO UNDER PRESSURE AFTER WESTINGHOUSE WAS FORCED TO TAKE 5 BILLION IN CHARGES LARGELY FOR BAD LOANS IN ITS FINANCIAL SERVICES ARM MR JORDAN'S RESTRUCTURING PLAN IS THE PRODUCT OF SIX MONTHS OF INTENSE SCRUTINY OF THE COMPANY INCLUDING VISITS TO MOST OF ITS UNITS WHICH RANGE FROM POWER GENERATION TO DEFENSE AND BROADCASTING THE RESTRUCTURING PLAN IS BELIEVED TO INCLUDE ASSET WRITEDOWNS INCLUDING WESTINGHOUSE'S STRUGGLING ENVIRONMENTAL CLEANUP BUSINESS ACCORDING TO PEOPLE CLOSE TO THE COMPANY OTHER ASSET WRITEDOWNS COULD INCLUDE PORTIONS OF WESTINGHOUSE'S ELECTRONICSDEFENSE BUSINESS IN ADDITION ABOUT 500 MILLION OF THE EXPECTED 15 BILLION CHARGE IS SAID TO BE RELATED TO THE COMPANY'S UNDERFUNDED PENSION PLAN THE RESTRUCTURING IS ALSO EXPECTED TO INCLUDE SOME LAYOFFS AND IS WIDELY VIEWED AS AN ATTEMPT BY MR JORDAN TO CLEAR THE DECKS FOR GOING FORWARD THE 57YEAROLD FORMER PEPSICO INC EXECUTIVE VOWED WHEN HE TOOK OVER TO CUT OUT THE LOSERS AND ADJUST THE COST STRUCTURE A WESTINGHOUSE SPOKESMAN DECLINED TO COMMENT ON THE COMPANY'S RESTRUCTURING PLANS IF ANY SAYING IT'S CORPORATE POLICY THAT WE DON'T COMMENT ON RUMORS THE DANGER IS THAT MR JORDAN'S PLAN MAY FALL SHORT OF WALL STREET EXPECTATIONS AND WHAT WESTINGHOUSE NEEDS FOR INSTANCE ANALYSTS ONCE EXPECTED AS MANY AS 10000 LAYOFFS BUT AFTER TALKING WITH WESTINGHOUSE OFFICIALS RECENTLY NICHOLAS P HEYMANN AN ANALYST WITH NATWEST SECURITIES CORP SAID THE WORK FORCE AT CONTINUING OPERATIONS WHICH HE DEFINES AS UNITS NOT TARGETED FOR EVENTUAL SALE COULD BE CUT TO 50000 FROM 54000 BUT MR JORDAN MAY BE HAMSTRUNG IN ANY EFFORTS TO MAKE MORE RADICAL CHANGES INVOLVING EVEN LARGER CHARGES PAST CHARGES HAVE ERODED THE COMPANY'S EQUITY BASE SAID UNA KEARNS AN ANALYST WITH MOODY'S INVESTOR SERVICE INC THERE'S NOT A LOT OF ROOM LEFT FOR WESTINGHOUSE TO TAKE FURTHER CHARGES MS KEARNS SAID WESTINGHOUSE POSTED A LOSS OF 118 BILLION OR 344 A SHARE IN 1992'S FOURTH QUARTER ON REVENUE OF 235 BILLION IN 1993'S FIRST QUARTER THE COMPANY EARNED 64 MILLION OR 15 CENTS A SHARE ON REVENUE OF 186 BILLION SIGNS OF PROBLEMS IN WESTINGHOUSE'S ENVIRONMENTALCLEANUP BUSINESS BECAME APPARENT IN THE THIRD QUARTER OF 1993 WHEN THE COMPANY SAID POOR RESULTS THERE REDUCED EARNINGS FOR THE PERIOD WESTINGHOUSE POSTED A 29 DROP IN OPERATING PROFIT TO 65 MILLION WESTINGHOUSE'S TWO INCINERATORS WERE OPERATING AT FAR LESS THAN CAPACITY WHILE THE TWO FACILITIES HAVE MADE A COMEBACK MR HEYMANN SAID THEY OPERATED AT CAPACITY IN NOVEMBER AND DECEMBER PRICING IS STILL SUBSTANDARD HE SAID MEANWHILE THE COMPANY STILL IS STRUGGLING WITH AN UNDERFUNDED PENSION PLAN ANALYSTS EXPECT THAT WESTINGHOUSE WILL LOWER ITS DISCOUNTRATE ASSUMPTION USED BY ITS PENSION FUND TO 7 FROM 8 INCREASING THE COMPANY'S CONTRIBUTIONS MR HEYMANN THE NATWEST ANALYST SAID HIGHER PENSIONFUND CONTRIBUTIONS WILL LARGELY EAT UP FREE CASH FLOW FROM OPERATIONS THIS YEAR FUNDS THAT HE ONCE BELIEVED WOULD BE USED TO PAY DOWN DEBT STILL WALL STREET IS LOOKING FOR MORE THAN A CLEANUP OF PAST PROBLEMS AT WESTINGHOUSE IT ALSO WANTS MR JORDAN TO SPELL OUT HIS PLANS TO GET ANY LONGTERM GROWTH IN THE STOCK PRICE YOU HAVE TO HAVE LONGTERM GROWTH OPPORTUNITIES SAID ONE PERSON FAMILIAR WITH THE COMPANY WITH THE PRESENT BUSINESSES THERE AREN'T TOO MANY AND OBSERVERS STILL ARE WAITING FOR MR JORDAN TO PUT TOGETHER A NEW MANAGEMENT TEAM FOR INSTANCE HE HAS YET TO PICK A NEW CHIEF FINANCIAL OFFICER AFTER WARREN H HOLLINSHEAD ANNOUNCED IN SEPTEMBER THAT HE WOULD RETIRE WESTINGHOUSE STOCK ROSE 50 CENTS OR 37 TO CLOSE AT 14125 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9401110033 940111 INDUSTRY FOCUS HUGE MARKET POTENTIAL IN CHINA LURES AUTO MAKERS GM WORRIED ABOUT DELAY LEAPS INTO MARKET AND PLANS TO FIX SNAGS LATER BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING BEHIND AN IRON FENCE AT A TRUCK DISTRIBUTORSHIP HERE A DIRTY NEW S10 PICKUP WITH THE BOLD GENERAL MOTORS CORP LOGO ON THE GRILL LANGUISHES UNSOLD AFTER FOUR MONTHS IT SAYS A LOT ABOUT WHY GM'S YEAROLD INVESTMENT IN CHINESE TRUCKMAKING IS OFF TO A BUMPY START MANY PEOPLE HAVE COME TO LOOK BUT NOBODY WILL BUY SAYS LI SHU BO THE DISTRIBUTORSHIP'S GENERAL MANAGER IT IS NOT SUITABLE TO THE CHINESE MARKET BECAUSE CHINA NEEDS A TRUCK WITH DOUBLE SEATING AND SPACE FOR FIVE OR SIX PEOPLE THE S10 HAS ONLY A SINGLE BENCH SEAT AND THEN THERE'S THE S10'S PRICE AROUND 30000 A HUGE FIGURE FOR CHINA AND ROUGHLY DOUBLE THE PRICE IN THE US THE WORLD'S BIGGEST AUTO MAKER SAYS IT KNEW ABOUT THE PROBLEMS AND IS FIXING THEM BUT GM FIGURED IT COULDN'T AFFORD TO DELAY GETTING INTO THE WORLD'S BIGGEST POTENTIAL MARKET SO IT JUMPED IN INTENDING TO BUILD A LESSEXPENSIVE MORESUITABLE PRODUCT LATER GM'S PARTSMAKING UNIT MEANTIME IS SETTING UP A JOINT VENTURE TO SELL ENGINEMANAGEMENT SYSTEMS THERE GM'S DETERMINATION SHOWS HOW KEENLY THE WORLD'S AUTO INDUSTRY WANTS TO BE HERE FROM EUROPE VOLKSWAGEN AG AND PSA PEUGEOT CITROEN SA HAVE ZOOMED AHEAD IN CHINA WITH THE MOST EXTENSIVE CAR OPERATIONS FROM THE US CHRYSLER CORP HAS THE OLDEST WESTERN JOINT VENTURE BEIJING JEEP AND FORD MOTOR CO IS KNOCKING ON THE DOOR AS FOR THE CAUTIOUS JAPANESE THEY ARE MAKING A FEW INVESTMENTS BUT ARE CHIEFLY IMPORTING CARS FOR THE TIME BEING THE WORLD AUTO INDUSTRY VIEWS THIS AS THE LAST GREAT OPPORTUNITY TO INVEST IN A DEVELOPING MARKET WE HAVE AUTO COMPANIES FROM ALL OVER THE WORLD CONTACTING US ALMOST DAILY SAYS DONG YI RU DEPUTY CHIEF OF THE JOINTVENTURE DEPARTMENT OF THE CHINA NATIONAL AUTOMOTIVE INDUSTRY CORP JUST NOW SHE SAYS GM IS COMPETING WITH FORD CHRYSLER DAIMLERBENZ AG'S MERCEDESBENZ AND MAZDA MOTOR CORP FOR A PLANNED JOINT VENTURE TO BUILD MULTIPURPOSE VEHICLES FOR CHINA AS FOR EVERY OTHER DEVELOPING ECONOMY A CAR INDUSTRY HOLDS GREAT ALLURE EVERY JOB IN A VEHICLEASSEMBLY PLANT TYPICALLY CREATES AT LEAST 10 ADDITIONAL JOBS IN PARTS MANUFACTURING AND AUTO DISTRIBUTION SALES AND SERVICING AT CHINA'S CURRENT ANEMIC PRODUCTION OF SLIGHTLY MORE THAN ONE MILLION CARS AND TRUCKS A YEAR THE SECTOR ALREADY ACCOUNTS FOR 33 OF MANUFACTURING OUTPUT AND EMPLOYS SOME 16 MILLION PEOPLE THE CHINESE GOVERNMENT IS DOING ITS BIT TO PROTECT AND ENCOURAGE THE NASCENT DOMESTIC INDUSTRY OVER THE WEEKEND AN OFFICIAL CHINESE NEWSPAPER REPORTED THAT THE GOVERNMENT PLANS TO HALT THE DUTYFREE SALE OF IMPORTED VEHICLES TO FOREIGNFUNDED COMPANIES AT THE SAME TIME THE GOVERNMENT PLANS TO EASE RESTRICTIONS ON CAR PURCHASES AND TAKE UNSPECIFIED STEPS TO REDUCE THE PRICES OF CHINESEMADE CARS IN THE LONG RUN IT'S HARD TO OVERESTIMATE THE MARKET POTENTIAL OF COURSE NOBODY THINKS THE CHINESE CAR MARKET WILL EXPLODE OVERNIGHT THE AVERAGE INCOME IS ESTIMATED AT AROUND 350 A YEAR INDUSTRY EXPERTS SAY THE AVERAGE HAS TO HIT 1000 TO SUPPORT A CONSUMER AUTO MARKET THE GOVERNMENT ESTIMATES THAT OF EIGHT MILLION CARS AND TRUCKS IN CHINA MAYBE ONLY 100000 ARE IN THE HANDS OF INDIVIDUALS THE OBSTACLES TO BUILDING UP THE AUTO INDUSTRY HERE ARE SOBERING CHINA'S PROTECTIONISM RAISES TO PROHIBITIVE LEVELS THE COSTS OF IMPORTING PARTS NEEDED TO START CAR PRODUCTION LOW VOLUMES AT THE BEGINNING DICTATE HIGH PRICES CITY STREETS ALREADY ARE CHOKED BY ALL THOSE BICYCLES WHICH MINGLE WITH PEDESTRIANS AND VEHICLES IN A NIGHTMARISH TRAFFIC JUMBLE HIGHWAYS TEND TO BE INTERRUPTED BY BUMPY STRETCHES OF DIRT ROAD SERVICE STATIONS ARE FEW AND FAR BETWEEN AND AUTO DEALERSHIPS ARE NEARLY NONEXISTENT AND THEN THERE ARE THE GROWING PAINS FUELED BY CHINA'S ECONOMIC BOOM THE CAR MARKET WAS SURGING IN THE FIRST HALF OF 1993 THEN IN JUNE THE GOVERNMENT IMPOSED AUSTERITY MEASURES TO FIGHT INFLATION AND THE VEHICLE MARKET DRIED UP FOR CHRYSLER'S 42OWNED BEIJING JEEP WHICH IS NINE YEARS OLD THERE HAS BEEN NOTHING BENIGN ABOUT THE GOVERNMENT'S ECONOMIC REFORMS FOR A BUSINESS INVESTOR TODAY IT'S PURE CHAOS AND THAT'S NOT TOO STRONG A WORD SAYS PETER BADORE THE GENERAL MANAGER OF CHRYSLER'S ASIAPACIFIC REGION MOREOVER HE CITES CONFLICTING RULES IMPOSED BY NATIONAL AND LOCAL AUTHORITIES SOMETIMES INTERPRETED DIFFERENTLY BY INDIVIDUAL OFFICIALS VW HAS BEEN OPERATING IN CHINA SINCE 1985 WITH ITS 50OWNED SHANGHAI VENTURE SHANGHAI VW BUILDS ENGINES AND THE SANTANA MODEL A MIDSIZE FOURDOOR SEDAN THAT VW USED TO SELL IN EUROPE NOW THEY'RE EVERYWHERE IN CHINA AND THE OPERATION IS CRANKING OUT 100000 CARS AND ENGINES A YEAR MARTIN POSTH CHAIRMAN AND PRESIDENT OF VW ASIAPACIFIC LTD BELIEVES THE OPTION OF CHOICE TYPICALLY USED IN SUCH UNDERDEVELOPED PLACES AS EAST GERMANY BUILDING A NEW CAR PLANT ON AN UNDEVELOPED SITE WON'T WORK HERE IT WOULD SIMPLY COST TOO MUCH AND THERE WOULD BE NO TRAINED STAFF AND NO NETWORK OF SUPPLIERS MOREOVER HE SAYS BY JOINING FORCES WITH ONE OF CHINA'S EXISTING STATERUN VEHICLE PLANTS AN OUTSIDE INVESTOR CAN TAP THE PARTNER'S EXPERTISE IN OBTAINING RAW MATERIALS AND LINING UP PARTS MAKERS IN SHENYANG A CONGESTED NORTHERN INDUSTRIAL CITY WHERE HALF THE BUILDINGS SEEM TO BE EITHER UNDER CONSTRUCTION OR DEMOLITION GM HAS HOOKED UP WITH JIN BEI AN EXPERIMENTAL PRIVATELY OWNED CONCERN WHOSE NAME MEANS GOLDEN CUP THE GMJIN BEI PLAN CALLS FOR THE VENTURE TO SUPPORT ITSELF FOR THE FIRST TWO YEARS PRINCIPALLY BY CONTINUING TO PRODUCE JIN BEI'S LINE OF TWOTON SIXPASSENGER TRUCKS THEN THE VENTURE PLANS TO BUILD A MORE MODERN PRODUCTION LINE ON WHICH IT WILL STEP UP S10 PRODUCTION SO FAR THOUGH THE S10 CLEARLY HASN'T IMPRESSED CHINESE BUYERS THE GOVERNMENT AUTO AGENCY SAYS IT HAS REMINDED THE JOINT VENTURE PARTNERS THAT THE S10 IS THE WRONG TYPE OF PRODUCT WE KNEW ABOUT THAT DEFICIENCY GOING IN SAYS A SOMEWHAT EXASPERATED THOMAS MCDANIEL THE PRESIDENT OF GM'S ASIANPACIFIC OPERATIONS WHO IS BASED IN SINGAPORE HE SAYS THE JOINT VENTURE PLANS TO START BUILDING CREWCAB AND JEEPLIKE SPORTUTILITY VERSIONS OF THE S10 WHILE MR MCDANIEL WON'T CONFIRM THE TIMING JIN BEI AND GOVERNMENT OFFICIALS SAY STARTUP IS PLANNED FOR FEBRUARY 1995 THE JOINT VENTURE AIMS TO DEVELOP AS MUCH LOCAL PARTSPRODUCTION AS IT CAN TO AVOID THE STIFF DUTIES CHINA SLAPS ON IMPORTED CARS AND PARTS THAT DR POSTH SAYS HAS BEEN A KEY TO SHANGHAI VW'S AGGRESSIVE EXPANSION IN ITS EIGHT YEARS SHANGHAI VW HAS PUSHED THE DOMESTIC CONTENT OF ITS SANTANAS ABOVE 80 HE SAYS THE VENTURE HAS DEVELOPED RELATIONS WITH 300 PARTS SUPPLIERS IN CHINA 9401110032 940111 BUSINESS BRIEF EASTMAN KODAK CO STERLING UNIT'S DISTRIBUTION OF HEALTH LINES TO EXPAND STERLING WINTHROP INC A DIVISION OF EASTMAN KODAK CO ROCHESTER NY SAID IT WILL EXPAND DISTRIBUTION OF ITS CONSUMERHEALTH PRODUCTS IN RUSSIA AND CENTRAL AND EASTERN EUROPE PRODUCTS WILL BE MARKETED THROUGH STERLING WINTHROP'S ALLIANCE WITH FRANCE'S ELFSANOFI AND UNDER THE STERLING HEALTH NAME INCLUDED IN THE EXPANSION ARE PANADOL BRAND OF ANALGESICS AND SEVERAL OTHER CONSUMERHEALTH PRODUCTS FROM A PRIOR JOINT VENTURE WITH CHINOIN A HUNGARIAN PHARMACEUTICAL COMPANY STERLING HEALTH'S PHILLIP'S MILK OF MAGNESIA WILL BE OFFERED SOON A COMPANY SPOKESWOMAN SAID IN ADDITION TO RUSSIA EXPANSION WILL OCCUR IN ROMANIA HUNGARY POLAND AND THE CZECH AND SLOVAK REPUBLICS SHE SAID STERLING WINTHROP DEVELOPS MAKES AND MARKETS PHARMACEUTICALS AND CONSUMERHEALTH PRODUCTS 9401110031 940111 MARKETING BRIEF NIKE INC FIRM SUES RIVAL APEX ONE ALLEGES TRADEMARK VIOLATION NIKE INC SUED SHOEMAKING NEWCOMER APEX ONE INC CHARGING THAT SOME PROFESSIONAL FOOTBALL PLAYERS UNDER CONTRACT WITH APEX ARE DISGUISING THEIR NIKES WITH APEX LABELS NIKE BEAVERTON ORE SAID IT FILED A COMPLAINT AGAINST THE CLOSELY HELD PISCATAWAY NJ COMPANY IN US DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY ALLEGING TRADEMARK INFRINGEMENT AND FALSE ADVERTISING THE PROBLEM NIKE SAID IS THAT SOME PLAYERS IN THE NATIONAL FOOTBALL LEAGUE ARE AFFIXING APEX STICKERS ON SPATS THEY WEAR OVER THEIR SHOES WHILE ACTUALLY WEARING NIKES THE SPATS COVER THE LACES AND SIDES OF SHOES AND THUS COVER LOGOS APEX SENDS LOGO DECALS TO PLAYERS WHO WEAR SPATS BUT INSTRUCTS THEM NOT TO USE THE DECALS IF THEY AREN'T WEARING APEX SHOES SAID JOSEPH KIRCHNER APEX'S CHIEF EXECUTIVE OFFICER WE HAVE CLEARLY ADVISED EVERYBODY NOT TO DO THAT HE SAID MR KIRCHNER SAID HE HADN'T YET EVALUATED THE NIKE SUIT 9401110030 940111 BUSINESS BRIEF MORGAN STANLEY GROUP INC SUBSIDIARY FORMED TO TRADE DERIVATIVES IS RATED TRIPLEA MORGAN STANLEY GROUP INC SAID IT FORMED A NEW SUBSIDIARY TO TRADE DERIVATIVE PRODUCTS THE UNIT TO BE CALLED MORGAN STANLEY DERIVATIVE PRODUCTS INC WILL HAVE AN INITIAL CAPITALIZATION OF 150 MILLION AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE NEW YORK COMPANY SAID INVESTMENT FIRMS HAVE BEEN SCRAMBLING IN THE PAST YEAR TO SET UP DERIVATIVE SUBSIDIARIES TO PROFIT FROM THE TRADE OF SWAPS OPTIONS AND OTHER DERIVATIVE PRODUCTS BY SETTING UP SEPARATE SUBSIDIARIES THE FIRMS ARE MORE LIKELY TO GET THE TRIPLEA CREDIT RATINGS THAT INVESTORS LOOK FOR ALTHOUGH THE NEW UNIT IS A WHOLLY OWNED SUBSIDIARY OF MORGAN THE COMPANY SAID IT IS LEGALLY SEPARATE AND BANKRUPTCY REMOTE FROM ITS PARENT AND AFFILIATES MORGAN SAID THE NEW SUBSIDIARY'S MARKET RISK WILL BE HEDGED USING EXACTLY OFFSETTING TRANSACTIONS WHICH WILL BE EXECUTED WITH AFFILIATES OF MORGAN STANLEY 9401110029 940107 QUARTERLY MUTUAL FUNDS REVIEW FOURTHQUARTER AND 1993 WINNERS AND LOSERS BEST AND WORSTPERFORMING STOCK FUNDS FOR THE PERIODS ENDED DEC 31 1993 ASSETS ARE FIGURED AS OF SEPT 30 1993 PERFORMANCE DATA ARE TOTAL RETURNS WHICH INCLUDE BOTH SHARE PRICE CHANGES AND REINVESTED DIVIDENDS 9401110028 940111 BUSINESS BRIEF CORPORATE MANAGEMENT GROUP INC TALKS ARE CANCELED TO BUY WOLF FINANCIAL GROUP UNIT CORPORATE MANAGEMENT GROUP INC SAID IT BROKE OFF TALKS TO PURCHASE SIX OF FN WOLF & CO'S 12 BROKERAGE BRANCHES BECAUSE THE TWO COMPANIES COULDN'T AGREE ON TERMS A SPOKESWOMAN FOR CORPORATE MANAGEMENT GROUP A BROKERAGE FIRM IN BOCA RATON FLA SAID THE TWO COMPANIES HAD REACHED AN AGREEMENT ON PRICE BUT NOT ON OTHER RELATED ISSUES SHE DECLINED TO OUTLINE THE NATURE OF THE DISPUTED TERMS THE ANTICIPATED ACQUISITION HAD RAISED EYEBROWS ON WALL STREET BECAUSE WOLF FACES 22 MILLION IN FINES FROM SECURITIES REGULATORS AND HAS TIES TO THE NOWDEFUNCT FIRST JERSEY SECURITIES INC A BROKERAGE HOUSE THAT CAME UNDER REGULATORY SCRUTINY FOR ITS STOCKSELLING PRACTICES OFFICIALS AT FN WOLF & CO A UNIT OF WOLF FINANCIAL GROUP INC IN NEW YORK COULD NOT BE REACHED FOR COMMENT THE PLANNED ACQUISITION WOULD HAVE INCLUDED SELECTED WOLF BROKERS OFFICE LEASES EQUIPMENT AND FURNISHINGS AND OTHER BRANCH ASSETS 9401110027 940111 BUSINESS BRIEF ZURICH INSURANCE CO CENTRE REINSURANCE STAKE INCREASED TO 100 FROM 70 ZURICH INSURANCE CO A MAJOR SWISS INSURER SAID IT INCREASED ITS STAKE IN CENTRE REINSURANCE HOLDINGS LTD IN BERMUDA TO 100 FROM MORE THAN 70 A COMPANY SPOKESMAN WASN'T IMMEDIATELY AVAILABLE TO COMMENT ON TERMS OF THE TRANSACTION ZURICH INSURANCE SAID THAT CENTRE'S REMAINING MINORITY SHAREHOLDERS KEMPER CORP ACE LTD NORTHWESTERN MUTUAL LIFE INSURANCE CO AND MARSH & MCLENNAN RISK CAPITAL HOLDINGS LTD HAVE AGREED THAT ZURICH INSURANCE WILL ASSUME 100 OF CENTRE'S SHARE CAPITAL THE TRANSACTION WILL ENABLE ZURICH TO STREAMLINE THE ORGANIZATIONAL STRUCTURE OF THE CENTRE GROUP AND THEREBY ENABLE IT TO STRENGTHEN ITS LEADERSHIP IN THE FINITE RISK MARKET AND TO OPEN UP OPPORTUNITIES IN RELATED MARKET SEGMENTS ZURICH SAID CENTRE REINSURANCE HAD 1992 GROSS PREMIUM VOLUME OF 479 MILLION WHILE THE ZURICH GROUP HAD TOTAL PREMIUM VOLUME OF 215 BILLION SWISS FRANCS 1467 BILLION 9401110026 940111 TECHNOLOGY & MEDICINE GENE MAPPING MAY LEAD TO BETTER CHEAPER MEAT WASHINGTON GOVERNMENT SCIENTISTS HAVE MAPPED THE GENETIC SEQUENCE OF CATTLE AND PIGS A DEVELOPMENT THAT THEY SAY WILL LEAD TO DISEASERESISTANT LIVESTOCK GIVING LEANER AND MORETENDER MEAT AGRICULTURE SECRETARY MIKE ESPY SAID CONSUMERS WILL BEGIN BENEFITING DIRECTLY IN THREE TO FIVE YEARS GENETIC MAPPING MARKS GENE GROUPS THAT ARE WORTH MULTIPLYING SAID DAN LASTER DIRECTOR OF THE DEPARTMENT'S MEAT AGRICULTURAL RESEARCH CENTER IN CLAY CENTER NEB THERE ARE STILL GAPS IN THE GENETIC MAP BUT SCIENTISTS HAVE ENOUGH PIECES TO BEGIN IDENTIFYING CERTAIN GENES THE DEPARTMENT STILL MUST FIGURE OUT HOW THE MARKED GENE GROUPS ARE LINKED TO SPECIFIC TRAITS THIS WILL ALLOW FARMERS TO IDENTIFY THESE TRAITS MORE QUICKLY AND BREED CATTLE MORE EFFICIENTLY IT CURRENTLY TAKES A DAIRY FARMER ABOUT FIVE YEARS TO DETERMINE WHETHER A BULL WILL BE A GOOD BREEDER FOR FARMERS THIS BREAKTHROUGH MEANS MORE COMPETITIVE COWS THESE GENETIC MAPS WILL PROVIDE A BASIS SO THE LIVESTOCK INDUSTRY CAN PRODUCE ANIMALS THAT ARE GENETICALLY RESISTANT TO CERTAIN DISEASES AND ON A LONGER TERM BASIS TO FOODBORNE BACTERIA MR ESPY SAID CONSUMERS VIRTUALLY CAN BE GUARANTEED TENDER MEAT SAID DEAN PLOWMAN ASSISTANT SECRETARY FOR SCIENCE AND EDUCATION THE BUTCHER WON'T HAVE TO CHOP AWAY EXTRA FAT HE SAID CONSUMERS ALSO WILL SAVE MONEY IN THE LONG RUN BECAUSE OF THE HIGHER EFFICIENCY AND PRODUCTIVITY OF BREEDERS MR PLOWMAN SAID 9401110025 940111 INTERNATIONAL BRIEF DEUTSCHE BANK AG FIRM PLEDGES TO BUY SHARES IN METALLGESELLSCHAFT OFFER DEUTSCHE BANK AG WHICH SHARES A 23 STAKE IN METALLGESELLSCHAFT AG WITH DRESDNER BANK AG SAID IT AND OTHER BANKS WOULD ABSORB ANY UNCLAIMED SHARES IF SMALLER SHAREHOLDERS DECLINE TO EXERCISE THEIR RIGHTS TO THE 56 MILLION NEW SHARES IN THE FINANCIALLY STRICKEN COMPANY THE SUPPORT OFFERS WERE SEEN GIVING BACKING TO A PLAN BY METALLGESELLSCHAFT'S NEW CHAIRMAN KAJO NEUKIRCHEN TO SELL NONCORE OPERATIONS AND FINANCIALLY RESTRUCTURE THE METALS ENGINEERING AND TRADING COMPANY THE FINANCIAL PACKAGE WOULD RAISE 14 BILLION MARKS 8105 MILLION THROUGH A NEW SHARE OFFERING AND ANOTHER 13 BILLION MARKS IN DEBTFOREQUITY SWAPS BY BANK CREDITORS BANKS ALSO ARE BEING ASKED FOR A NEW 500 MILLION MARK CREDIT LINE MR NEUKIRCHEN HAS SAID THE COMPANY FACES BANKRUPTCY IF THE PACKAGE ISN'T ACCEPTED BY TOMORROW BANKING SOURCES SAID METALLGESELLSCHAFT'S BIGGER SHAREHOLDERS WHO HOLD A COMBINED 62 OF ITS EQUITY PLAN TO PARTICIPATE IN THE NEW SHARE OFFERING THEY ARE DEUTSCHE BANK DRESDNER BANK THE KUWAIT GOVERNMENT DAIMLERBENZ AG AND INSURER ALLIANZ AG 9401110024 940111 WHO'S NEWS MORGAN STANLEY & CO MORGAN STANLEY & CO NEW YORK PAM CARLTON WILL JOIN PATRICIA NEWMAN AS CODIRECTOR OF EQUITY RESEARCH EFFECTIVE MARCH 1 MS CARLTON 39 YEARS OLD CURRENTLY A PRINCIPAL IN THE FIRM'S DEBT CAPITAL MARKETS SERVICES AREA WILL SUCCEED ALLERTON CUSHMAN JR MR CUSHMAN IS STEPPING DOWN AS DIRECTOR TO BECOME AN ADVISORY DIRECTOR TO THE DEPARTMENT MS NEWMAN THE ASSISTANT DIRECTOR OF RESEARCH UNDER MR CUSHMAN WAS NAMED CODIRECTOR OF THE GROUP LAST MONTH MS CARLTON AND MS NEWMAN WILL OVERSEE A STAFF OF ABOUT 55 ANALYSTS MORGAN STANLEY & CO IS A UNIT OF MORGAN STANLEY GROUP INC 9401110023 940111 WHO'S NEWS SCI SYSTEMS INC SCI SYSTEMS INC HUNTSVILLE ALA ROBERT DELAURENTIS 53 YEARS OLD RESIGNED AS TREASURER AND CHIEF FINANCIAL OFFICER OF THE ELECTRONICPRODUCTS AND SYSTEMS MANUFACTURER MR DELAURENTIS SAID THAT THE RESIGNATION WAS AN AMICABLE PARTING AND THAT HE WANTED TO MOVE BACK TO CALIFORNIA TO PURSUE OTHER INTERESTS SCI SYSTEMS HASN'T APPOINTED A SUCCESSOR 9401110022 940111 BUSINESS BRIEF DIEBOLD INC ATM FIRM BUYS BUSINESSES OF ITS DISTRIBUTOR HIDROMEX DIEBOLD INC CANTON OHIO SAID IT FINALIZED ITS PURCHASE OF 100 OF THE AUTOMATEDTELLERMACHINE DISTRIBUTION AND CERTAIN RELATED BUSINESSES OF HIDROMEX SA DE CV FOR UNDISCLOSED TERMS THIS IS AN INCREASE FROM THE 80 INTEREST DIEBOLD ANNOUNCED IT INTENDED TO PURCHASE IN JUNE IN ADDITION TO ATMS DIEBOLD WILL DISTRIBUTE AND SERVICE PHYSICAL AND ELECTRONIC SECURITY EQUIPMENT AS WELL AS THE GILBARCO CORP'S LINE OF GAS PUMPS THE NEW SUBSIDIARY BASED IN MEXICO CITY AND EMPLOYING 180 WILL BE KNOWN AS DIEBOLD MEXICO SA DE CV HIDROMEX DIEBOLD'S ATM DISTRIBUTOR SINCE 1987 SOLD ABOUT 4000 DIEBOLD ATMS CAPTURING ABOUT 80 OF THE MARKET DIEBOLD SAID 9401110021 940111 WHO'S NEWS CYPRUS AMAX MINERALS CO CYPRUS AMAX MINERALS CO DENVER DAVID H WATKINS 49 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF EXPLORATION OF THIS MINING COMPANY HE SUCCEEDS FRED PARK 57 WHO ELECTED TO TAKE RETIREMENT UNDER A SEVERANCE OPTION TRIGGERED BY CYPRUS MINERAL'S ACQUISITION OF AMAX IN DECEMBER MR WATKINS WAS A VICE PRESIDENT AND DIRECTOR OF METALL MINING CORP TORONTO A UNIT OF METALLGESELLSCHAFT AG OF FRANKFURT GERMANY 9401110020 940111 TECHNOLOGY & MEDICINE NEW DRUG HELPS STOP JAUNDICE IN NEWBORNS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JAUNDICE THAT DEVELOPS IN MANY NEWBORN INFANTS CAN BE PREVENTED WITH A SINGLE INJECTION OF AN EXPERIMENTAL DRUG DEVELOPED AT ROCKEFELLER UNIVERSITY A RESEARCH TEAM REPORTED JAUNDICE A CONDITION IN WHICH THE SKIN ASSUMES A YELLOW OR BROWN TINGE IS CAUSED BY BUILDUP IN THE BLOODSTREAM OF A BILE SUBSTANCE CALLED BILIRUBIN IT DEVELOPS WITHIN 24 HOURS OF BIRTH IN OVER HALF OF FULLTERM INFANTS AND AN EVEN HIGHER PROPORTION OF PREMATURE ONES IN THE MAJORITY THE JAUNDICE DISAPPEARS WITHIN A FEW DAYS HOWEVER IN ABOUT 10 OF THE INFANTS ABOUT 250000 A YEAR IN THE US THE BILIRUBIN LEVELS BECOME SO HIGH THEY THREATEN TO DAMAGE THE INFANT'S NERVOUS SYSTEM IN SUCH CASES THE INFANT IS EXPOSED FOR SEVERAL HOURS TO SPECIAL BLUE OR WHITE LIGHTS WHICH CAUSE THE BILIRUBIN TO UNDERGO A CHEMICAL CHANGE THAT ALLOWS THE BODY TO GET RID OF IT DEVELOPED BY ATTALLAH KAPPAS AND GEORGE S DRUMMOND AT ROCKEFELLER UNIVERSITY THE NEW DRUG TINMESOPORPHYRIN OR SNMP INTERRUPTS PRODUCTION OF BILIRUBIN AND THUS PREVENTS ITS BUILDUP IN THE BLOODSTREAM THE UNIVERSITY IS CURRENTLY NEGOTIATING A LICENSING ARRANGEMENT WITH AN UNNAMED NEW YORK BIOPHARMACEUTICAL COMPANY A UNIVERSITY SPOKESMAN SAID IN A REPORT PUBLISHED IN THE CURRENT ISSUE OF THE JOURNAL PEDIATRICS THE AMERICAN AND GREEK RESEARCH TEAM DESCRIBED RESULTS OF TREATING 231 PREMATURE INFANTS WITH THE NEW DRUG THE INFANTS BORN OVER THE PAST FOUR YEARS AT METERA MATERNITY HOSPITAL IN ATHENS GREECE RECEIVED THE DRUG SHORTLY AFTER BIRTH PREMATURE INFANTS WERE GIVEN SHOTS OF THE DRUG WHETHER THEY HAD JAUNDICE OR NOT THEIR BILIRUBIN LEVELS WERE CAREFULLY MONITORED FOR SEVERAL DAYS WHEN THE BILIRUBIN LEVEL ROSE ABOVE A CERTAIN THRESHOLD THE INFANT WAS GIVEN PHOTOTHERAPY VARIOUS DOSAGES OF THE NEW DRUG WERE TRIED AMONG THE 55 INFANTS RECEIVING THE MOST EFFECTIVE DOSE ONLY 13 OR 24 REQUIRED PHOTOTHERAPY RESEARCHERS REPORTED AND THE INFANTS REQUIRED AN AVERAGE OF ONLY 48 HOURS OF LIGHT EXPOSURE IN CONTRAST AMONG 182 CONTROL INFANTS WHO RECEIVED SHOTS OF SALINE PLACEBO 113 OR 62 NEEDED AN AVERAGE OF 77 HOURS OF PHOTOTHERAPY TO CLEAR THEIR JAUNDICE THE NEW DRUG APPEARED FREE OF ADVERSE EFFECTS EXCEPT FOR A SLIGHT TEMPORARY REDDENING OF THE SKIN IN A FEW INFANTS 9401110019 940111 VIACOM STOCK SINKS ON BLOCKBUSTER NEWS CUTTING THE VALUE OF PARAMOUNT OFFER BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL IN A SETBACK TO VIACOM INC'S BID FOR PARAMOUNT COMMUNICATIONS INC SHARES OF VIACOM PLUNGED 67 YESTERDAY ON NEWS OF THE CABLETV PROGRAMMER'S PROPOSED TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORP IN A DRAMATIC MOVE TO RAISE MORE CASH TO COMPETE AGAINST RIVAL QVC NETWORK INC'S OFFER FOR PARAMOUNT VIACOM LATE FRIDAY ANNOUNCED PLANS TO ACQUIRE BLOCKBUSTER A VIDEO AND MUSIC RETAILER FOR STOCK AND OTHER SECURITIES VALUED AT 84 BILLION BLOCKBUSTER ALSO AGREED TO PAY VIACOM 125 BILLION FOR 23 MILLION SHARES OF VIACOM CLASS B STOCK IN ORDER TO ENABLE VIACOM TO RAISE THE CASH PORTION OF ITS CASHANDSTOCK BID FOR PARAMOUNT BUT THE 275 DROP IN VIACOM NONVOTING CLASS B SHARES WHICH CLOSED AT 3825 APIECE ON THE AMERICAN STOCK EXCHANGE CUT THE VALUE OF VIACOM'S BID FOR PARAMOUNT BY 153 MILLION TO ABOUT 93 BILLION OR 7715 A SHARE THE REDUCED SHARE PRICE MADE IT MORE DIFFICULT FOR VIACOM TO RAISE THE STOCK PORTION OF ITS BID IN ORDER TO COMPETE WITH QVC'S HIGHER OFFER VALUED AT ABOUT 98 BILLION OR 8153 A SHARE AND IT STUNNED VIACOM ADVISERS WHO HAD PREDICTED THAT SHAREHOLDERS WOULD APPLAUD THE PROPOSED VIACOMBLOCKBUSTER MARRIAGE THE MARKET ACTION FLEW IN THE FACE OF PERSONAL APPEALS YESTERDAY BY VIACOM CHAIRMAN SUMNER REDSTONE AND BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA WHO BOTH TRIED TO PROMOTE THE MERGER AND IT RAISED SPECULATION THAT DIRECTORS AT PARAMOUNT WHOSE STOCK SAGGED 1875 A SHARE TO 77375 ON THE NEW YORK STOCK EXCHANGE ON DISAPPOINTMENT THAT VIACOM DIDN'T ATTEMPT TO TOP THE QVC OFFER MAY ATTEMPT TO ACCELERATE THE SOFAR DESULTORY BIDDING PROCESS AT A BOARD MEETING SCHEDULED FOR TOMORROW SOME PARAMOUNT DIRECTORS WERE DESCRIBED AS IMPATIENT TO GET THE FOURMONTHOLD CONTEST OVER WITH AND CONCERNED ABOUT VIACOM'S HAVING ADDED TWO WEEKS TO THE PROCEEDINGS WITHOUT SUBSTANTIALLY RAISING THE TOTAL VALUE OF ITS OFFER UNDER THE BIDDING RULES EACH SIDE MUST KEEP ITS OFFER OPEN AN EXTRA 10 BUSINESS DAYS EACH TIME THE OTHER SIDE RAISES ITS BID BUT THE LAST DAY THAT RULE APPLIES IS FEB 1 TWO WEEKS BEFORE THE BIDDING TIMETABLE IS SUPPOSED TO END SOME PEOPLE SAID THE BOARD MAY TRY TO REINFORCE OR EVEN MOVE UP THE FEB 1 DEADLINE FOR THE BIDDERS TO SUBMIT THEIR BEST BIDS THE BIDDING PROCESS WAS DESIGNED IN RESPONSE TO TWO DELAWARE COURT DECISIONS THAT CRITICIZED PARAMOUNT'S BOARD FOR NOT FAIRLY EVALUATING THE BID BY QVC WHOSE CHAIRMAN BARRY DILLER IS A LONGTIME RIVAL OF PARAMOUNT CHAIRMAN MARTIN DAVIS IN A STATEMENT YESTERDAY QVC SAID VIACOM VIOLATED THE BIDDING PROCEDURES BY NOT RAISING THE TOTAL VALUE OF ITS OFFER AND ASKED THE PARAMOUNT BOARD TO TAKE APPROPRIATE ACTION IT SAID THAT 268 MILLION PARAMOUNT SHARES OR 22 WERE TENDERED TO QVC AS OF MIDNIGHT FRIDAY SHORT OF THE 51 NEEDED TO WIN THE CONTEST PARTLY BECAUSE INVESTORS HAD HEARD RUMORS VIACOM WOULD MAKE A BIG INCREASE IN ITS OFFER AND BECAUSE THE 105ASHARE CASH COMPONENT BECAME KNOWN WELL BEFORE TRADERS REALIZED THAT VIACOM HAD REDUCED THE SECURITIES IN THE BACK END BECAUSE VIACOM'S NEW BID DIDN'T APPROACH QVC'S IN TOTAL VALUE SOME TRADERS SPECULATED THAT MR REDSTONE MAY HAVE MERELY BEEN ATTEMPTING TO BUY TWO WEEKS OF EXTRA TIME IN ORDER TO OBTAIN FINANCING TO BOOST HIS OFFER CRAIG BIBB WHO FOLLOWS BLOCKBUSTER FOR PAINEWEBBER INC SAID HE BELIEVES VIACOM'S STOCK DECLINE REFLECTS INVESTORS' BELIEF THAT THE MAGNITUDE OF THE VIACOMBLOCKBUSTER COMBINATION IMPLIES THAT VIACOM IS LIKELY TO RAISE ITS PARAMOUNT BID THE STOCK OF THE BIDDER THAT APPEARS TO BE GAINING IN THE PARAMOUNT BATTLE USUALLY GETS HIT BUT YESTERDAY BOTH BIDDERS' STOCKS DECLINED QVC'S FELL 1375 A SHARE TO 3925 ON THE NASDAQ STOCK MARKET MR BIBB SAID MANY BLOCKBUSTER SHAREHOLDERS WERE DISAPPOINTED THAT THEY DIDN'T GET A PREMIUM FOR THEIR STOCK BUT HE NOTED THAT BLOCKBUSTER ONLY FELL 25 CENTS A SHARE TO 28 ON THE BIG BOARD WHICH COULD IMPLY THAT TRADERS BELIEVE HIGHER BIDS FROM OTHER PARTIES COULD EMERGE FOR VIACOM TO RAISE ITS BID AGAIN MAY BE EVEN MORE CUMBERSOME THE NEXT TIME BECAUSE UNDER THE TERMS OF THE BLOCKBUSTERVIACOM AGREEMENT BLOCKBUSTER MANAGEMENT HAS AN EFFECTIVE VETO POWER OVER ANY CHANGES IN THE VIACOM OFFER FOR PARAMOUNT ACCORDING TO PUBLIC FILINGS MADE YESTERDAY MR HUIZENGA CITED THAT VETO POWER IN A CONFERENCE CALL WITH ANALYSTS AND SHAREHOLDERS LATE YESTERDAY HE WAS RESPONDING TO A SHAREHOLDER WHO SAID HE WAS CONCERNED THAT BLOCKBUSTER WOULD BE SWEPT UP IN AN EGODRIVEN BIDDING WAR FOR PARAMOUNT AT EVERINCREASING PRICE LEVELS MR HUIZENGA WAS THE FIRST TO HIT THE HUSTINGS TO DRUM UP SUPPORT FOR HIS DEAL YESTERDAY IN AN APPEARANCE ON PUBLIC TV'S MORNING BUSINESS REPORT HE SAID HE BELIEVES THAT IF VIACOM DOESN'T SUCCEED IN ACQUIRING PARAMOUNT VIACOM'S STOCK WILL BOUNCE RIGHT BACK TO 55 TO 60 HE ALSO SAID THE PICTURE WOULD BECOME CLEARER BY FEB 14 WHICH HE DESCRIBED AS THE DROPDEAD DATE VIACOM'S MR REDSTONE IN AN APPEARANCE AT A PALM SPRINGS CALIF MEDIA CONFERENCE HELD BY HIS INVESTMENT BANKER SMITH BARNEY SHEARSON INC SAID TOGETHER VIACOM AND BLOCKBUSTER WILL BE THE LARGEST CUSTOMER OF HOLLYWOOD AND RECORD COMPANIES WITH OBVIOUS ADVANTAGES IN PRICE PROMOTION AND OTHERWISE AND WITH VIACOM'S FILM AND TELEVISION LIBRARY OF 8500 TITLES BLOCKBUSTER AND VIACOM TOGETHER WILL CONTROL NEARLY 30000 HOURS OF MOVIES AND TELEVISION SERIES AND MR REDSTONE SAID VIACOM BOOSTED THE CASH IN ITS BID IN ORDER TO TOP THE BID BY QVC WHICH IS OFFERING 92 A SHARE IN CASH FOR 51 OF PARAMOUNT WITHOUT COMPROMISING OUR BALANCE SHEET WITH LESS LEVERAGE AND WITHOUT DILUTION OF SHARE VALUE AS FOR THE SECURITIES BEING OFFERED FOR PARAMOUNT'S REMAINING SHARES HE SAID WHAT PARAMOUNT SHAREHOLDERS SHOULD BE ASKING THEMSELVES IS WHERE SIX MONTHS FROM NOW QVCPARAMOUNT STOCK WOULD TRADE AS OPPOSED TO WHERE VIACOMPARAMOUNT INDEED VIACOMPARAMOUNTBLOCKBUSTER WOULD TRADE 9401110018 940111 POLITICS & POLICY MODERATE REP LEACH STEPS OUT OF CHARACTER TO LEAD REPUBLICAN ATTACK ON CLINTON'S ETHICS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ADD THIS ONE TO THE LIST OF BAFFLING QUESTIONS ABOUT BILL CLINTON'S DEALINGS WITH WHITEWATER DEVELOPMENT CO JUST WHAT IN THE WORLD HAS GOTTEN INTO JIM LEACH THE SCHOLARLY SOFTSPOKEN IOWA REPUBLICAN HAS FOR YEARS BEEN CONSIDERED ONE OF THE LEAST PARTISAN MEMBERS OF THE HOUSE A VESTIGIAL MODERATE IN A PARTY THAT HAS MOVED STEADILY RIGHTWARD YET IN THE CONTROVERSY OVER MR CLINTON'S TIES WITH THE REALESTATE DEVELOPMENT AND A FAILED ARKANSAS THRIFT THE 51YEAROLD CONGRESSMAN HAS SUDDENLY TURNED INTO HIS PARTY'S PIT BULL SNAPPING AT THE PRESIDENT'S ETHICS WITH A FEROCITY THAT WOULD DO NEWT GINGRICH PROUD MR LEACH HAS BEEN AT THE FOREFRONT OF GOP CALLS FOR AN INDEPENDENT COUNSEL AND A THOROUGH CONGRESSIONAL INVESTIGATION INTO THE ALLEGATIONS ABOUT MR CLINTON LAST WEEK HE SUGGESTED THE PRESIDENT MIGHT BE GUILTY OF CRIMINAL VIOLATIONS WHILE HE WAS GOVERNOR OF ARKANSAS FOR GOING EASY ON THE FAILED THRIFT MADISON GUARANTY SAVINGS & LOAN IN RETURN FOR FAVORS HIS GOP COLLEAGUES ARE CLEARLY THRILLED TO HAVE HIM RATHER THAN SOME MORE SHARPEDGED AND IDEOLOGICAL FIGURE LEADING THE CHARGE WE IN THE REPUBLICAN PARTY HAVE BEEN LOOKING FOR A LONG TIME TO FIND A PARTISAN BONE IN HIS BODY WE HAVEN'T FOUND ONE SAYS CONSERVATIVE REP RICHARD ARMEY OF TEXAS THE CHAIRMAN OF THE HOUSE REPUBLICAN CONFERENCE IF MR LEACH WHO IS RESPECTED BY EVERYBODY FOR HIS INTELLECT AND PROFESSIONAL WORK HAS SAID THERE ARE SOME SERIOUS PROBLEMS HERE WE NEED TO HAVE AN INVESTIGATION ALL THIS IS PRETTY HEADY STUFF FOR A MAN WHO HAS SPENT MUCH OF HIS POLITICAL CAREER AT ODDS WITH HIS PARTY'S LEADERSHIP AS THE GOP BECAME MORE AND MORE CONSERVATIVE AFTER HIS 1976 ELECTION TO CONGRESS MR LEACH FOUND HIMSELF INCREASINGLY ISOLATED A FORMER CHAIRMAN OF THE RIPON SOCIETY A REPUBLICAN PROGRESSIVE GROUP HE INFURIATED THE REAGAN TEAM A DECADE AGO BY CREATING AN ORGANIZATION CALLED REPUBLICAN MAINSTREAM COMMITTEE TO COMBAT THE PARTY'S RIGHTWARD DRIFT SO HOW DID GENTLEMAN JIM LEACH BECOME THE GOP'S CHIEF BOMBTHROWER ON WHITEWATER AS THE TOP REPUBLICAN ON THE BANKING PANEL HE SAYS HE'S FIGHTING TO PROTECT THE RIGHT OF THE MINORITY PARTY TO CARRY OUT INVESTIGATIONS OF POSSIBLE WRONGDOING BY THE MAJORITY IT'S IMPORTANT TO SET A PRECEDENT THAT SAYS WHEN THE MAJORITY PARTY IN CONGRESS IS OF THE SAME PARTY OF THE WHITE HOUSE THAT THE MINORITY SHOULD BE EMPOWERED WHEN IT COMES TO INFORMATIONGATHERING DEMOCRATS THOUGH SAY IT'S ALL POLITICS THERE HAS BEEN NO SPECIFIC ALLEGATION OF CRIMINAL WRONGDOING WHAT THERE HAS BEEN IS A SERIES OF POLITICAL ATTACKS VICE PRESIDENT AL GORE SAID ON THE CBS NEWS PROGRAM FACE THE NATION LAST WEEKEND THE EXTREMIST WING OF THE REPUBLICAN PARTY HAS PUSHED PRETTY HARD TO FORCE MR LEACH TO ATTACK THE PRESIDENT CHARGES HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ OF TEXAS WHO HAS REFUSED THE GOP'S DEMAND FOR HEARINGS INTO MADISON GUARANTY ON GROUNDS THAT THE CASE PRESENTS NO NEW LEGISLATIVE ISSUES MR LEACH'S EXCESSIVE PARTISANSHIP' IS EASY TO EXPLAIN ADDS DEMOCRATIC REP BARNEY FRANK OF MASSACHUSETTS HE'S HAD A CHANGE OF LIFE SITUATION MR FRANK SAYS HE'S NOW THE RANKING REPUBLICAN ON THE HOUSE BANKING COMMITTEE ELECTED BY THE CAUCUS IF HE HADN'T DONE THIS THEY WOULD HAVE BEEN AFTER HIM AND HE MIGHT HAVE RISKED LOSING HIS POST TO A MORE CONSERVATIVE COLLEAGUE MR LEACH ADMITS THAT THE HAPPENSTANCE OF POSITION HAS PUT HIM INTO THE FRAY BUT HE SAYS HE IS BOTHERED BY CHARGES THAT HE'S CONDUCTING A POLITICAL ATTACK AS IF THERE'S SOMETHING DIRTY ABOUT PARTISANSHIP I FEEL QUITE SENSITIVE ON THIS SUBJECT HE SAYS WHITEWATER IT APPEARS OFFENDS HIS SQUEAKYCLEAN GOODGOVERNMENT SENSIBILITIES THIS AFTER ALL IS A MAN WHO DOESN'T ACCEPT CAMPAIGN CONTRIBUTIONS FROM POLITICALACTION COMMITTEES OR NONIOWANS AND ONLY ACCEPTS INDIVIDUAL CONTRIBUTIONS UP TO 500 HALF THE LEGAL LIMIT MR LEACH SEEMS GENUINELY ANGRY OVER THE POSSIBILITY THAT MR CLINTON MAY HAVE VIOLATED WHAT HE CALLS ONE OF THE MORAL LAWS OF HIGH OFFICE THAT YOU DON'T SEEK TO ACHIEVE PRIVATE GAIN THROUGH PUBLIC SERVICE THERE ARE PERHAPS PERSONAL CONSIDERATIONS AS WELL ONE IS MR LEACH'S CLOSENESS TO FORMER PRESIDENT GEORGE BUSH THE TWO MET MORE THAN TWO DECADES AGO WHEN MR LEACH THEN A YOUNG FOREIGN SERVICE OFFICER WAS ASSIGNED TO WORK FOR UNITED NATIONS AMBASSADOR BUSH WITH BITTERNESS MR LEACH NOTES THAT THE SAME LAWMAKERS WHO WON'T INVESTIGATE BILL CLINTON NOW HAD NO RESERVATIONS ABOUT GOING AFTER NEIL BUSH THE FORMER PRESIDENT'S SON IN THE FAILURE OF A DENVER THRIFT THERE IS A SENSE OF INEQUITABLE APPLICATION OF THE RULES OF CONGRESS WHEN IT COMES TO OVERSIGHT HE SAYS AS MR LEACH SEES IT THE CHARGES AGAINST MR CLINTON ARE POTENTIALLY FAR MORE SERIOUS THAN THOSE AGAINST NEIL BUSH IN ARKANSAS IT APPEARS THAT CONFLICTS OF INTEREST WERE DEVELOPED WITH THE GOVERNOR WITH NOVEL TECHNIQUES NOT ONLY OF CONTRIBUTING TO A CAMPAIGN BUT FOR REWARDING THE GOVERNOR THROUGH A REAL ESTATE VENTURE CALLED WHITEWATER HE CHARGED IN AN INTERVIEW ON NATIONAL PUBLIC RADIO LAST WEEK THE IMPROPRIETY IS EXTRAORDINARY WHETHER IT GOES BEYOND THE KIND OF CIVIL REMEDY TO THE CRIMINAL DIMENSION IS ONE OF THE GREAT QUESTIONS MR LEACH SAYS THAT HIS REFERENCE TO POSSIBLE CRIMINAL ACTIVITY STEMS FROM A REFERRAL THAT THE RESOLUTION TRUST CORP THE AGENCY THAT CLEANS UP FAILED S&LS MADE TO THE JUSTICE DEPARTMENT IN SEEKING A CRIMINAL PROBE OF ACTIVITIES BY MADISON GUARANTY THE RTC MENTIONED DEALINGS BETWEEN THE THRIFT AND BILL AND HILLARY RODHAM CLINTON ACCORDING TO REPORTS MR LEACH CALLS THE MENTION OF A PRESIDENT IN A CRIMINAL REFERRAL CLOSE TO UNPRECEDENTED BUT IMMEDIATELY AFTER RAISING THE POSSIBILITY OF CRIMINALITY BY THE PRESIDENT HE RETREATS BEHIND A CURTAIN OF RESPECT EVEN IF THERE IS A BREACH IN THE LAW CIVIL REMEDIES SHOULD BE PURSUED HE SAYS THIS IS AN ISSUE THAT COULD EMBARRASS A SIGNIFICANT POLITICAL PLAYER BUT THE PRESIDENCY ITSELF ISN'T IN JEOPARDY THE LAST TIME MR LEACH ACHIEVED SUCH NATIONAL PROMINENCE WAS IN THE LATE 1980S WHEN HE WARNED OF THE PENDING COLLAPSE OF THE SAVINGSANDLOAN INDUSTRY A DEBACLE HE BLAMES PARTLY ON THE POLITICAL CONTROL OF THE REGULATORY SYSTEM NOW HE WORRIES THAT A CLINTON ADMINISTRATION PROPOSAL TO CONSOLIDATE BANK REGULATORS WOULD ALLOW THE WHITE HOUSE TO CONTROL BANK SUPERVISION THUS IT'S APPROPRIATE TO LOOK AT HOW GOV CLINTON DEALT WITH BANK REGULATORS IN ARKANSAS HE SAYS THE PRESIDENT HAS STEADFASTLY MAINTAINED HIS INNOCENCE OF ANY WRONGDOING AND JAMES MCDOUGAL THE FORMER OWNER OF MADISON GUARANTY AND THE CLINTONS' PARTNER IN WHITEWATER WAS ACQUITTED IN 1990 OF FEDERAL CHARGES OF VIOLATING BANKING LAW THERE HAS BEEN NO EVIDENCE OF CRIMINALITY AND IF THERE WERE ANY CRIMINAL ACTS COMMITTED THEY WERE COMMITTED DURING THE PRESIDENCIES OF RONALD REAGAN AND GEORGE BUSH AND LEFT UNPROSECUTED SAYS REP FRANK HE PREDICTS THAT THE MADISON GUARANTY AFFAIR WILL FADE AWAY SHORTLY AFTER CONGRESS REENACTS AN EXPIRED LAW ALLOWING THE COURTS TO APPOINT SPECIAL PROSECUTORS HE EXPRESSES CONFIDENCE THAT AN INVESTIGATION BY A COURTAPPOINTED OFFICIAL WOULD QUICKLY EXONERATE MR AND MRS CLINTON OF ANY CHARGES MR LEACH THOUGH INSISTS THERE'S NO WAY OF KNOWING THAT NOW WE HAVE AN INFORMATIONAL GAP HERE HE SAYS IF THE OTHER SIDE WANTS TO SAY THAT ANY SUGGESTION OF IMPROPRIETY IS UNFAIR ALL IT HAS TO DO IS MAKE ALL RECORDS AVAILABLE TO DISPROVE THE CHARGE AND THEY'RE REFUSING TO DO THIS IF THERE IS NOTHING WRONG WHY ARE THEY HIDING 9401110016 940111 WEIRTON UNION REACH ACCORD WEIRTON WVA WEIRTON STEEL CORP AND THE INDEPENDENT STEELWORKERS UNION AGREED TO A TENTATIVE THREEYEAR CONTRACT FOR 4500 WORKERS AT THE EMPLOYEEOWNED COMPANY'S STEEL MILL BOTH PARTIES SAID DETAILS WERE NOT RELEASED PENDING RATIFICATION BY THE UNION BOTH SIDES INDICATED THAT THEY WERE SATISFIED WITH THE AGREEMENT 9401110015 940111 MARKETING & MEDIA KNIGHTRIDDER TO AIR NIGHTLY NEWS REPORT ON TRIBUNE STATION MIAMI IN A BID TO BRING ITS NEWSPAPERS INTO THE BROADCAST ARENA KNIGHTRIDDER INC IS LAUNCHING A NIGHTLY TELEVISION REPORT IN PHILADELPHIA BASED ON STORIES AND INTERVIEWS FROM ITS PHILADELPHIA INQUIRER THE PROGRAM CALLED THE INQUIRER NEWS HOUR WILL AIR SEVEN NIGHTS A WEEK STARTING THIS SUMMER ON A TRIBUNE CO STATION THE NEWSPAPERSTATION IS PERHAPS ONE OF THE MOST AMBITIOUS ATTEMPTS TO CARRY THE NEWSPAPER INDUSTRY INTO TELEVISION IF THE STATION IS SUCCESSFUL KNIGHTRIDDER SAID IT WILL START SIMILAR VENTURES IN ITS OTHER NEWSPAPER MARKETS AND PERHAPS EVEN A 24HOUR NEWS STATION KNIGHTRIDDER DECLINED TO DISCUSS STARTUP COSTS OR WHAT EFFECT THE OPERATION MIGHT HAVE ON EARNINGS BUT THE STATION WHICH WILL BE RUN BY A NEW SUBSIDIARY KR VIDEO INC IS EXPECTED TO BE PROFITABLE WITHIN A REASONABLE AMOUNT OF TIME SAID CLARK HOYT VICE PRESIDENT NEWS ANALYSTS ESTIMATED THE LOSS THIS YEAR COULD BE AT LEAST 2 MILLION IN 1992 KNIGHTRIDDER REPORTED EARNINGS OF 409 MILLION OR 74 CENTS A SHARE ON REVENUE OF 233 BILLION IT WILL COST A FEW PENNIES A SHARE IN 1994 SAID ERIC PHILO OF GOLDMAN SACHS AND THEY MAY NOT NEED THAT VIDEOPROGRAMMING EXPERIENCE FOR A COUPLE OF YEARS BUT WHEN THEY DO THIS WILL GIVE THEM A HEADSTART THE AIM OF THE PROJECT IS TO PROVIDE A WIDER AUDIENCE FOR INQUIRER NEWS AND TO GIVE KNIGHTRIDDER A FOOTHOLD IN THE VIDEOPRODUCTION BUSINESS WHICH WILL PLAY A LEADING ROLE IN THE EMERGING MULTIMEDIA THEATER THERE ARE A LOT OF PEOPLE OUT THERE WHO ARE VIEWERS NOT READERS SAID ROBERT J HALL PUBLISHER AND CHAIRMAN OF THE PHILADELPHIA NEWSPAPERS INC 9401110014 940111 CS FIRST BOSTON IS LIABLE IN RATNERS SUIT ARBITRATORS DECIDE NEW YORK AN ARBITRATION PANEL FOUND CS FIRST BOSTON INC LIABLE FOR MISREPRESENTING THE STABILITY AND LIQUIDITY OF RATNERS GROUP PLC PREFERRED STOCK TO US INVESTORS BUT A THREEMEMBER PANEL OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS REFUSED TO GRANT THE INVESTORS' REQUEST THAT THE CS HOLDING UNIT VOID THE RATNERS TRADES AND RETURN INVESTORS' MONEY THE MIXED DECISION IS THE FIRST FINDING OF SEVERAL ARBITRATION AND COURT CASES FILED AGAINST CS FIRST BOSTON AND GOLDMAN SACHS & CO ALLEGING MISREPRESENTATIONS IN THE SALES OF ROUGHLY 200 MILLION IN VARIABLETERM PREFERENCE SHARES OF RATNERS A BRITISH JEWELRY CONCERN NOW KNOWN AS SIGNET GROUP PLC CS FIRST BOSTON AND GOLDMAN HAVE CONTESTED THE ALLEGATIONS WHICH WERE FILED PRIMARILY BY WELLHEELED INVESTORS ALLEGING LOSSES TOTALING 46 MILLION IN THE AUCTIONPREFERRED MARKET IN THE FIRST BOSTON CASE CMB REALTY TRUST AND ITS TRUSTEES ALLEGED THAT THE FIRM MISREPRESENTED THE SHARES AS A SAFE AND SECURE INVESTMENT WITH A VERY DECENT YIELD AND THAT THE SHARES WOULD BE AUCTIONED EVERY 28 DAYS FOLLOWING THE TRUST'S PURCHASE OF 200000 OF RATNERS SHARES IN JULY 1991 HOWEVER AN OCTOBER 1991 AUCTION WAS CANCELED AND RATNERS'S INVESTMENT RATING WAS DOWNGRADED THE TRUST HAD ASKED FOR 200000 IN DAMAGES INCLUDING A REQUEST THAT THE TRADES BE RESCINDED BUT THE ARBITRATORS WITHOUT COMMENT GRANTED 37500 IN DAMAGES AND NO RECISION THEY DID FIND LIABILITY AGAINST FIRST BOSTON BUT IT'S A MYSTERY AS TO HOW THEY GOT TO THE NUMBER FOR DAMAGES SAID RICHARD GELB A LAWYER IN BOSTON WHO FILED THE CASE ON BEHALF OF THE TRUST CS FIRST BOSTON OFFICIALS WEREN'T AVAILABLE TO COMMENT 9401110012 940111 S&P MOODY'S REPORT DEBTRATING BOOSTS LED REDUCTIONS IN '93 NEW YORK TWO LARGE RATINGS SERVICES SAID THE NUMBER OF DEBTRATING UPGRADES EXCEEDED DOWNGRADES IN 1993 FOR THE FIRST TIME IN ALMOST A DECADE WITH THE BANKING SECTOR SHOWING PARTICULARLY STRONG CREDITQUALITY IMPROVEMENT STANDARD & POOR'S CORP ATTRIBUTED THE GAINS TO LOWER INTEREST RATES AND CORPORATE BELTTIGHTENING MOODY'S INVESTORS SERVICE INC SAID IT EXPECTS SPECULATIVEGRADE RATINGS TO LEAD THE POSITIVE TREND IN 1994 S&P SAID THAT FOR THE FIRST TIME SINCE 1980 THE NUMBER OF CORPORATE UPGRADES OUTPACED DOWNGRADES UPGRADES THE AGENCY REPORTED TOTALED 343 COMPARED WITH 263 DOWNGRADES IN DOLLAR VOLUME HOWEVER RATINGS WERE LOWERED ON 243 BILLION OF DEBT AND RAISED ON 130 BILLION BECAUSE THE RATINGS OF SEVERAL LARGE ISSUERS WERE LOWERED S&P SAID COMPANIES THAT SAW THEIR RATINGS LOWERED INCLUDE GENERAL MOTORS CORP INTERNATIONAL BUSINESS MACHINES CORP AND AMERICAN EXPRESS CO S&P NOTED MOODY'S ALSO REPORTED A HIGHER VOLUME OF UPGRADES FOR THE FIRST TIME IN NINE YEARS IN 1993 MOODY'S RAISED RATINGS OF 163 COMPANIES WHILE LOWERING RATINGS OF 154 CORPORATIONS THIS COMPARED WITH 227 DOWNGRADES IN 1992 AND 136 UPGRADES THE CREDIT QUALITY OF FINANCIAL INSTITUTIONS SHOWED THE MOST IMPROVEMENT LAST YEAR BOTH COMPANIES REPORTED MOODY'S SAID BANKS REPRESENTED 50 UPGRADES THE HIGHEST AMOUNT IN THE FINANCIAL SECTOR AS BANK CAPITAL GREW AMONG INSURERS THE RATINGS OF 15 ISSUERS WERE RAISED AFFECTING 82 BILLION IN DEBT WHILE RATINGS OF 12 WERE LOWERED AFFECTING 34 BILLION MOODY'S SAID BOTH CREDIT SERVICES FORECAST POSITIVE RATING TRENDS FOR 1994 9401110011 940111 LEGAL BEAT CABLE TELEVISION ASKS HIGH COURT FOR FREEDOM OF SPEECH BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SHOULD OPERATORS OF CABLE TELEVISION SYSTEMS BE REQUIRED TO OFFER LOCAL BROADCASTING FARE SUCH AS FOREIGNLANGUAGE NEWS COOKING SHOWS AND OLD MOVIES OR DO SUCH REQUIREMENTS VIOLATE CABLE COMPANIES' FREESPEECH RIGHTS THE SUPREME COURT IS POISED TO DECIDE WHETHER CONGRESS INFRINGED THE FIRST AMENDMENT WHEN IT PASSED LEGISLATION TWO YEARS AGO THAT FORCES CABLE OPERATORS TO DEVOTE UP TO ONETHIRD OF THEIR CHANNEL CAPACITY TO LOCAL COMMERCIAL BROADCAST STATIONS AND ADDITIONAL SLOTS TO NONPROFIT EDUCATIONAL PROGRAMS THE CASE WHICH WILL BE ARGUED TOMORROW COULD HAVE RAMIFICATIONS FAR BEYOND THE SOCALLED MUSTCARRY DISPUTE THE JUSTICES' DECISION MAY GIVE REGULATORS GUIDELINES FOR IMPOSING TRAFFIC RULES ON THE MUCHANTICIPATED INFORMATION SUPERHIGHWAY LESS THAN ONE HOUR AFTER THE 1992 CONGRESSIONAL VOTE CABLE GIANT TURNER BROADCASTING SYSTEM INC WAS IN FEDERAL COURT HERE CHALLENGING THE MUSTCARRY REQUIREMENT NOW TURNER BROADCASTING AND A PLATOON OF CABLE'S MAJOR PLAYERS HAVE TAKEN THE CHALLENGE TO THE SUPREME COURT CONSUMER ADVOCATES CONTEND THAT THE MUSTCARRY RULES PROTECT MINORITYORIENTED AND PUBLICINTEREST PROGRAMMING THAT OTHERWISE COULD DISAPPEAR BUT FLEDGLING CABLE PROGRAMMERS LIKE THE COURTROOM TELEVISION NETWORK A TWOYEAROLD JOINT VENTURE OF AMERICAN LAWYER MEDIA LP TIME WARNER AND OTHERS OBJECT THAT THE RULES BAR THEM ACCESS TO SOME CABLE SYSTEMS THE CHANNELS THEY SAY ARE CLOGGED WITH MARGINAL LOCALLY BROADCAST SHOWS WHICH CAN RANGE FROM FARM REPORTS TO SITCOM RERUNS THE NEW TELECOMMUNICATIONS HYBRIDS COMPANIES THAT PLAN TO COMBINE TELEPHONE SERVICE WITH ENTERTAINMENT NEWS SHOPPING AND OTHER VIDEO OFFERINGS ARE WATCHING THE CASE AVIDLY IN A BRIEF SUPPORTING THE CABLE INDUSTRY A GROUP OF REGIONAL PHONE COMPANIES SOME OF WHICH ARE MERGING WITH OR INVESTING IN CABLE FIRMS URGE THE JUSTICES NOT TO STIFLE INNOVATION BY GIVING LESS FREEDOM TO SPEECH THAT IS DELIVERED OVER ELECTRONIC INFORMATION HIGHWAYS RATHER THAN OVER ASPHALT AND CONCRETE RIGHTS OF WAY BUT INDEPENDENT BROADCASTERS WARN IN AN OPPOSING BRIEF THAT A RULING GRANTING THE CABLE INDUSTRY BROAD FIRST AMENDMENT PROTECTION COULD HINDER GOVERNMENT EFFORTS TO OVERSEE THE UNPREDICTABLE EVOLUTION OF INFORMATION TECHNOLOGY PHONE COMPANIES FOR EXAMPLE MIGHT BE ABLE TO DUCK SOME OF THEIR NOWSTRINGENT REGULATIONS BY ACQUIRING CABLE INTERESTS ALTHOUGH NEARLY TWOTHIRDS OF TVWATCHING HOUSEHOLDS ARE WIRED FOR CABLE THE SUPREME COURT HASN'T YET DEFINED THE BURGEONING INDUSTRY'S STATUS UNDER THE FIRST AMENDMENT SHOULD IT ENJOY THE EXTENSIVE PROTECTION ACCORDED THE PRINT PRESS OR THE MORE LIMITED SHIELD GRANTED BROADCAST TELEVISION THE SUPREME COURT ALLOWS GREATER REGULATION OF TELEVISION BECAUSE THE BROADCAST SPECTRUM IS A FINITE PUBLIC ASSET THAT THE FEDERAL GOVERNMENT MUST DIVIDE UP AND SUPERVISE TO PREVENT CHAOS CABLE TELEVISION DELIVERED VIA WIRES HAS HUGE POTENTIAL TO EXPAND BUT CONGRESS FOUND ANOTHER RATIONALE FOR PASSING THE MUSTCARRY RULES WHICH WERE INCLUDED IN THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT OF 1992 CONGRESS STRESSED THAT AS A RESULT OF CABLE OPERATORS BEING GRANTED EXCLUSIVE LOCAL FRANCHISES AND THE HUGE EXPENSE OF BUILDING MORE THAN ONE SYSTEM IN A COMMUNITY FEW CONSUMERS ARE ABLE TO CHOOSE AMONG COMPETING CABLE COMPANIES AS MORE PEOPLE HAVE SWITCHED TO CABLE FROM OVERTHEAIR SERVICE THE CABLE INDUSTRY HAS GAINED AN ADVANTAGE OVER SOME LOCAL BROADCASTERS IN THE COMPETITION FOR ADVERTISING DOLLARS LAWMAKERS ALSO CONCLUDED THAT CABLE SYSTEM OPERATORS HAD GROWING INCENTIVES INCLUDING INVESTMENT IN THEIR OWN CABLE PROGRAMMING TO DROP CERTAIN LOCAL STATIONS FROM THE PACKAGES OFFERED TO CUSTOMERS IN PRACTICE THE MUSTCARRY RULES AID A MINORITY OF STATIONS 20 BY SOME ESTIMATES THAT TEND NOT TO BE AFFILIATED WITH THE MAJOR BROADCAST NETWORKS CABLE OPERATORS ARE EAGER TO CARRY POPULAR PROGRAMMING FROM LOCAL NETWORK AFFILIATES IN FACT A SEPARATE PROVISION OF THE 1992 CABLE ACT WHICH ISN'T AT ISSUE BEFORE THE SUPREME COURT ALLOWS LOCAL STATIONS WITH POPULAR PROGRAMMING TO DEMAND PAYMENT FOR USE OF THEIR SHOWS THE CABLE INDUSTRY'S ATTACK ON THE REGULATIONS WAS REBUFFED BY A SPECIAL FEDERAL COURT IN WASHINGTON THE LOWER COURT SAID THAT CONGRESS LEGITIMATELY WANTED TO PRESERVE DIVERSITY IN PROGRAMMING WITHOUT DICTATING ITS SPECIFIC CONTENT IN ITS APPEAL TO THE SUPREME COURT THE CABLE INDUSTRY DEMANDS THAT IT BE TREATED LIKE THE TRADITIONAL PRESS THE INDUSTRY ARGUES THAT THE MUSTCARRY RULES ARE AN UNCONSTITUTIONAL ATTEMPT TO CONTROL EDITORIAL CHOICES MADE BY SYSTEM OPERATORS THE RULES ALSO DISCRIMINATE AGAINST CABLE PROGRAMMERS BY FAVORING WEAK AND LITTLEWATCHED LOCAL BROADCASTERS THE CABLE INDUSTRY CONTENDS WHILE SOME STATIONS MIGHT PERISH WITHOUT THE MUSTCARRY CRUTCH CABLE COMPANIES ADD THERE ISN'T HARD EVIDENCE THAT LOCAL BROADCASTING IN GENERAL WOULD SUFFER TO DRAMATIZE THEIR UNHAPPINESS SOME CABLE OPERATORS HAVE BUMPED CSPAN THE HIGHLY REGARDED CABLE PUBLICAFFAIRS PROGRAMMER TO MAKE ROOM FOR LOCAL STATIONS AS A RESULT OF THE MUSTCARRY RULES IT IS SIGNIFICANTLY MORE DIFFICULT FOR NATIONAL CABLE PROGRAMMERS PARTICULARLY NEW ONES TO REACH THE PUBLIC ASSERTS COURT TV IN A FRIENDOFTHECOURT BRIEF DESPITE TALK OF FUTURE CABLE SYSTEMS WITH HUNDREDS OF CHANNELS EXISTING SYSTEMS TYPICALLY HAVE THREE OR FOUR DOZEN AND FEW OPENINGS COURT TV SAYS THAT MUSTCARRY OBLIGATIONS HAVE CAUSED CABLE SYSTEMS IN ILLINOIS AND CALIFORNIA TO SPURN ITS PROGRAMS WHILE SYSTEMS IN NEW JERSEY AND CONNECTICUT HAVE REDUCED ITS HOURS ON THE OTHER SIDE OF THE MUSTCARRY COIN IS TELEMUNDO GROUP THE COUNTRY'S SECONDLARGEST SPANISH LANGUAGE TV COMPANY WHICH PRODUCES SHOWS AND OWNS STATIONS IN 53 LOCAL MARKETS MANY OF THOSE AREAS HAVE BIG HISPANIC POPULATIONS BUT UNTIL RECENTLY MOST CABLE OPERATORS IN TELEMUNDO'S MARKETS EXCLUDED ITS STATIONS AND CARRIED NO SPANISH LANGUAGE PROGRAMMING WHATSOEVER CLAIMS TELEMUNDO NOW TELEMUNDO SAYS ITS STATIONS HAVE BEEN ADDED TO 140 CABLE SYSTEMS NATIONWIDE THEREBY REACHING AN ADDITIONAL 400000 HISPANIC VIEWERS THE CONSUMER FEDERATION OF AMERICA WHICH IS PARTICIPATING IN THE SUPREME COURT CASE ON BEHALF OF VIEWERS SAYS THAT WITHOUT THE MUSTCARRY RULES MANY SMALL STATIONS WILL FAIL IN ITS BRIEF THE CONSUMERS' GROUP PREDICTS THAT VIEWERS WOULD LOSE WHAT HAS BEEN THEIRS FOR DECADES ACCESS TO FREE OVERTHEAIR TELEVISION AND THE QUALITY LOCAL PROGRAMMING IT OFTEN PROVIDES HURT MOST SEVERELY AMONG VIEWERS ACCORDING TO THE CONSUMERS' GROUP WOULD BE THE NEARLY 40 OF TVOWNING HOUSEHOLDS THAT DON'T RECEIVE CABLE DISPROPORTIONATELY THE YOUNG THE OLD AND THE POOR SMALLNEWSPAPER CHAINS THAT PUBLISH SIMILAR EDITIONS UNDER DIFFERENT MASTHEADS AREN'T ENTITLED TO A LABORLAW EXEMPTION FROM PAYING OVERTIME TO REPORTERS A FEDERAL APPEALS COURT RULED THE US APPEALS COURT IN PHILADELPHIA SAID NEWSPAPERS THAT SHARE STAFF MANAGEMENT AND CONTENT MUST COMBINE THEIR CIRCULATIONS IN ORDER TO DETERMINE WHETHER THEY QUALIFY FOR THE SMALLNEWSPAPER EXEMPTION THE EXEMPTION APPLIES TO NEWSPAPERS WITH CIRCULATIONS UNDER 4000 OF WHICH THERE ARE ABOUT 4000 THE DECISION CAME IN A LAWSUIT BY THE DEPARTMENT OF LABOR AGAINST GATEWAY PRESS INC THE PUBLISHER OF 19 PITTSBURGHAREA SUBURBAN NEWSPAPERS ALLEGING THAT IT OWED ITS REPORTERS AND PHOTOGRAPHERS BACK PAY AND OVERTIME THE LABOR DEPARTMENT SAID GATEWAY'S JOURNALISTS ROUTINELY WORKED MORE THAN 40 HOURS A WEEK BUT WERE INSTRUCTED NOT TO REPORT MORE THAN 40 HOURS ON THEIR TIME SHEETS IN RULING AGAINST GATEWAY THE COURT SAID THE PAPERS WEREN'T SEPARATE ENOUGH FROM EACH OTHER TO BE CONSIDERED INDEPENDENT FOR PURPOSES OF THE SMALLNEWSPAPER EXEMPTION AT THE GATEWAY CHAIN AS AT MANY SMALLNEWSPAPER GROUPS RELATED PAPERS SHARE SOME OF THE SAME REPORTERS AND OFFICE SPACE AND PRINT MANY OF THE SAME ADVERTISEMENTS AND STORIES BASICALLY IT WIPES OUT THE SMALLNEWSPAPER EXEMPTION EXCEPT FOR INDEPENDENTLY OWNED PAPERS SAID MARY SEPUCHA DIRECTOR OF LABOR RELATIONS AT THE NEWSPAPER ASSOCIATION OF AMERICA IT WILL HAVE A SIGNIFICANT IMPACT BECAUSE MANY OF THE SMALL PAPERS THAT DO EXIST TEND TO BE PART OF SUBURBAN CHAINS THE COURT SAID ITS DECISION LAST WEEK WAS THE FIRST TIME A FEDERAL APPEALS COURT HAS RULED ON THE EXEMPTION JAMES A PROZZI AN ATTORNEY FOR GATEWAY AT THE PITTSBURGH OFFICE OF JACKSON LEWIS SCHNITZLER & KRUPMAN SAID HE WILL ASK THE ENTIRE APPEALS COURT TO RECONSIDER THE THREEJUDGE PANEL'S DECISION THE COURT ALSO REJECTED GATEWAY'S CLAIM THAT ITS REPORTERS AND PHOTOGRAPHERS WERE ARTISTIC PROFESSIONALS UNDER FEDERAL LABOR LAW WHICH ALSO WOULD HAVE EXEMPTED THEM FROM OVERTIME OTHER COURTS HAVE RULED SIMILARLY ON THIS ISSUE BUT NEWSPAPER ATTORNEYS SAID THE GATEWAY DECISION SET SOME NEW GUIDELINES FOR DETERMINING WHETHER A JOURNALIST'S WORK SHOULD BE DEFINED AS PROFESSIONAL LAWYERS SAID THAT THESE GUIDELINES MIGHT ACTUALLY MAKE IT EASIER FOR LARGE NEWSPAPERS TO DEMONSTRATE THAT ITS JOURNALISTS DO INDEED QUALIFY AS PROFESSIONALS WHO ARE NOT ENTITLED TO OVERTIME PAY JOHN KESTER AN ATTORNEY FOR THE WASHINGTON POST AT THE LAW FIRM WILLIAMS & CONNOLLY SAID HE WILL CITE THE COURT'S DECISION IN A SEPARATE CASE PENDING AGAINST THE POST IN THAT CASE REPORTERS SEEKING OVERTIME PAY HAVE ARGUED THAT THEIR WORK INVOLVES MORE FACTGATHERING THAN CREATIVITY BUT THE COURT IN THE GATEWAY CASE SAID FACTGATHERING ITSELF CAN BE A PROFESSIONAL SKILL FOR SOME JOURNALISTS SUCH AS INVESTIGATIVE REPORTERS AT MAJOR NEWSPAPERS THE EUROPEAN COURT OF JUSTICE SAID COMPANIES CAN CONTINUE TO CALCULATE CERTAIN PENSION BENEFITS ON THE BASIS OF SEXBASED ACTUARIAL TABLES THE RECENT RULING WAS A VICTORY FOR BRITISH COMPANIES AND THEIR INSURERS WHICH HAVE TRADITIONALLY USED THE TABLES TO GRANT DIFFERENT LUMPSUM BENEFITS TO MEN AND WOMEN ON GROUNDS THAT WOMEN ON AVERAGE LIVE FIVE YEARS LONGER THAN MEN THE DECISION WAS A SETBACK FOR THE EUROPEAN COMMISSION WHICH ARGUED THAT SEXBASED TABLES CAN BE DISCRIMINATORY BECAUSE WOMEN TEND TO LIVE LONGER ANNUITYBASED PENSION SCHEMES HAVE TRADITIONALLY GRANTED THEM LARGER LUMPSUM RETIREMENT PAYMENTS IT'S IN THE PENSION SCHEME'S INTEREST TO GET WOMEN OFF THE ROLLS SOONER BECAUSE OTHERWISE THEY WOULD LIKELY BE PAID OVER A LONGER PERIOD IN A SERIES OF DECISIONS IN THE 1970S AND 1980S THE US SUPREME COURT RULED THAT ANNUITYBASED SCHEMES MUST BE GENDERBLIND ALTHOUGH WOMEN DO INDEED LIVE LONGER THAN MEN ON AVERAGE THE US COURT SAID THAT ISN'T NECESSARILY THE CASE FOR A PARTICULAR MAN AND A PARTICULAR WOMAN WHO ARE PART OF THE SAME SCHEME THUS SUCH A GENDERBASED SYSTEM CAN BE DISCRIMINATORY WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9401110010 940111 YOUR MONEY MATTERS DARTS TROUNCE THE PROS BY 42 TO 22 IN LATEST SIXMONTH STOCKPICKING DUEL BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL SCORE A BIG ONE FOR THE DARTS IN THE LATEST INVESTMENT DARTBOARD CONTEST FOUR STOCKS CHOSEN BY A RANDOM THROW OF DARTS SURGED FAR AHEAD OF THE PICKS OF FOUR INVESTMENT PROFESSIONALS AND OUTDID THE DOW JONES INDUSTRIAL AVERAGE LED BY COREL CORP A GRAPHICSSOFTWARE MAKER WHOSE STOCK MORE THAN DOUBLED THE DARTS AVERAGED A 42 GAIN IN THE PERIOD FROM JULY 7 TO DEC 31 MEANWHILE THE DOW JONES INDUSTRIALS ROSE 8 BRINGING UP THE REAR FOUR STOCKS CHOSEN BY THE PROS WHICH AVERAGED A MEAGER 22 GAIN THE PROS REMAIN COMFORTABLY AHEAD OF THE DARTS IN A SERIES OF OVERLAPPING SIXMONTH BOUTS BY A MARGIN OF 25 TO 18 THEIR RECORD AGAINST THE DOW JONES INDUSTRIALS IS PERILOUSLY CLOSE HOWEVER AT 22 TO 21 THE PROS LOOK BETTER WHEN AVERAGE GAINS ARE COMPARED IN 43 CONTESTS OVER THE PAST FOUR YEARS THE INVESTMENT PROFESSIONALS HAVE TURNED IN AN AVERAGE SIXMONTH GAIN OF 78 COMPARED WITH 44 FOR THE INDUSTRIAL AVERAGE AND 35 FOR THE FORCES OF CHANCE DARTS THROWN AT THE STOCK TABLES BY WALL STREET JOURNAL STAFFERS IN THE LATEST COMPETITION THE DARTS HAD TWO LUCKY PICKS BESIDES COREL'S OUTSTANDING PERFORMANCE SCANDINAVIAN BROADCASTING SYSTEMS SA'S STOCK PRICE GAINED 54 CAPITAL CITIES/ABC INC BOUGHT A 21 STAKE IN THE FOREIGN BROADCASTER IN NOVEMBER WITH THE RIGHT TO INCREASE ITS HOLDINGS TO 25 THE TOPPERFORMING SELECTION AMONG THE PROS WAS GENERAL ELECTRIC CO CHOSEN BY DAVID MORSE PRESIDENT OF FORD INVESTOR SERVICES INC IN SAN DIEGO ITS PRICE ROSE 11 CLOSE BEHIND WAS ENERGY CONVERSION DEVICES INC WITH A 10 GAIN IT WAS THE PICK OF STEVE NEWBY PRESIDENT OF NEWBY & CO A BROKERAGE HOUSE IN ROCKVILLE MD AS IS THE CUSTOM IN THIS CONTEST THE TWO TOP FINISHERS HAVE BEEN INVITED BACK THEY WILL BE JOINED THIS TIME BY JOHN P BYE VICE PRESIDENT AND PORTFOLIO MANAGER AT PNC BANK CORP IN PHILADELPHIA AND RICHARD SCHMIDT PRESIDENT OF STELLAR MANAGEMENT INC A MONEYMANAGEMENT FIRM IN NAPLES FLA AND EDITOR AND PUBLISHER OF RISK REPORT AN INVESTMENT NEWSLETTER FOR THE COMING SIX MONTHS MR MORSE IS GOING WITH TOYS R US INC THE BIG DISCOUNT RETAILER OF TOYS AND CHILDREN'S WEAR I'M A GRANDFATHER OF FOUR HE SAYS AND I SHOPPED AT ONLY ONE CHILDREN'S STORE THIS CHRISTMAS TOYS R' US HE BOUGHT MINICOMPUTERS AND RADIOCONTROLLED CARS FOR HIS GRANDSONS AND A KITCHEN SET FOR AN 18MONTHOLD GRANDDAUGHTER MR MORSE THINKS THE CHAIN HAS BIG POTENTIAL INTERNATIONALLY DESPITE RECENT DISAPPOINTMENTS WHEN TOYS R' US OPENS OVERSEAS IT'S LIKE WALMART GOING INTO A SMALL MIDWESTERN TOWN HE SAYS THEY JUST DEMOLISH THE COMPETITION ALTHOUGH INTERNATIONAL SALES DECLINED IN THE LATEST CHRISTMAS SEASON MR MORSE PREDICTS A TURNAROUND AS ECONOMIC CONDITIONS IMPROVE IN THE US TOYS R US CONTROLS ABOUT A FIFTH OF THE 14 BILLION TOY MARKET MR MORSE CALCULATES THE FAIR VALUE OF TOYS R US STOCK AT 58 A SHARE IT TRADED LATE YESTERDAY AT 3825 UP 50 CENTS ON THE NEW YORK STOCK EXCHANGE HIS THREE COMPETITORS ALL CHOSE TECHNOLOGY STOCKS MR NEWBY'S PICK IS HUTCHINSON TECHNOLOGY INC A MAKER OF SUSPENSION ASSEMBLIES FOR COMPUTER DISK DRIVES BASED IN HUTCHINSON MINN MR BYE LIKES INTEL CORP THE SANTA ANA CALIF MANUFACTURER OF INTEGRATED CIRCUITS OR COMPUTER CHIPS MR SCHMIDT IS PINNING HIS HOPES ON BOSTON TECHNOLOGY INC OF BOSTON WHICH MAKES HARDWARE AND SOFTWARE FOR VOICEPROCESSING OR VOICEMAIL SYSTEMS HUTCHINSON TECHNOLOGY MAKES ABOUT FIVE MILLION ASSEMBLIES A WEEK MR NEWBY SAYS AND HAS A 70 MARKET SHARE IT HAD A WEAK SECOND HALF AS IT MADE A MANUFACTURING TRANSITION TO MOREPRECISE ASSEMBLIES FOR SMALLER DISK DRIVES HE SAYS AND RIGHT NOW CAN'T MEET DEMAND THAT WILL CHANGE BY THE END OF THE YEAR MR NEWBY PREDICTS IT'S A GOOD POSITION TO BE IN NOT BEING ABLE TO MEET DEMAND HE SAYS ADDING THAT THE COMPANY LICENSED ITS TECHNOLOGY TO COMPETITORS MR NEWBY PREDICTS THAT HUTCHINSON TECHNOLOGY WILL EARN 250 A SHARE IN THE CURRENT FISCAL YEAR ENDING SEPT 30 COMPARED WITH 158 LAST YEAR HE THINKS SALES WILL BE ABOUT 250 MILLION COMPARED WITH 198 MILLION IN FISCAL 1993 HE THINKS THE STOCK CAN TRADE AT 15 TIMES EARNINGS WHICH WOULD PUT IT IN THE HIGH 30S BY THE END OF THIS SIXMONTH CONTEST IT TRADED LATE YESTERDAY AT 3275 UP 250 ON THE NASDAQ STOCK MARKET HUTCHINSON OFFICIALS COULDN'T BE REACHED LATE YESTERDAY TO COMMENT ON THE RISE IN THE STOCK THE STOCK HIT A HIGH OF 5125 IN 1993 MR BYE SAYS ONE OF THE THINGS INTEL HAS GOING FOR IT IS THAT IT DOES HAVE CAPACITY TO MEET DEMAND HE EXPECTS DEMAND TO CONTINUE FOR INTEL'S 486 CHIP AND TO BUILD FOR THE NEWER PENTIUM CHIP SHIPMENTS OF THE 486 WHICH SOARED 85 LAST YEAR WILL RISE 30 TO 35 THIS YEAR HE SAYS CALLING THAT A PRETTY GOOD RATE HE THINKS INTEL CAN SHIP SIX MILLION TO SEVEN MILLION PENTIUM CHIPS THIS YEAR THE RESULT WILL BE 20 EARNINGS GROWTH HE PREDICTS NOTING THAT'S DOUBLE THE GROWTH RATE MANY OTHERS ARE PREDICTING THE STOCK COULD BE TRADING IN THE 80 TO 85 RANGE IN THE NEXT SIX MONTHS SAYS MR BYE IT TRADED LATE YESTERDAY ON THE NASDAQ STOCK MARKET AT 67 UP 1125 IT'S THE KIND OF NAME THAT ONCE IT STARTS TO MOVE IT COULD EASILY EXCEED OUR TARGET MR BYE SAYS MR SCHMIDT SEES BOSTON TECHNOLOGY AS A COMMUNICATIONS PLAY A TECHNOLOGY PLAY AND AN EXPORT PLAY OVER THE NEXT SIX MONTHS HE SAYS THERE'S A CHANCE OF 80 TO 100 PRICE APPRECIATION THE STOCK TRADED LATE YESTERDAY ON THE NASDAQ STOCK MARKET AT 9625 UP 125 CENTS THAT WAS DOWN FROM A HIGH OF 10875 LAST SUMMER THE COMPANY SELLS ITS VOICEMAIL SYSTEMS TO PHONE COMPANIES AND DIRECTLY TO BIG CORPORATIONS HE SAYS AND ALREADY HAS A LARGE SHARE OF THE EXPORT MARKET THEY HAVE 100 OF HONG KONG HALF OF JAPAN AND ALL OF BRAZIL MR SCHMIDT SAYS THEY'RE IN A GOOD POSITION TO TAKE ADVANTAGE OF THE OPENING UP OF THE WORLD AND THE TECHNOLOGY REVOLUTION BOSTON TECHNOLOGY ALSO MAKES VOICEMAIL SYSTEMS FOR CELLULAR PHONES FOR THE SIX MONTHS THROUGH JUNE 30 THE PROS' SELECTIONS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF AL LABORATORIES INC CAGLE'S INC CAMCO INTERNATIONAL INC AND WATERHOUSE INVESTOR SERVICES INC SERVICES/TRADELINE SCANDINAVIAN BROADCASTING UP 541 VALASSIS COMMUNICATIONS UP 59 BLAIR CORP DOWN 141 9401110009 940111 INTERNATIONAL RUSSIA'S REVAMPED PARLIAMENT OPENS TODAY WITH NEW DISPUTES LOOMING BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN DEMOCRACY IS DUE TO MAKE A FRESH START TODAY WITH THE OPENING OF THE COUNTRY'S FIRST FREELY ELECTED PARLIAMENT SINCE BEFORE THE 1917 BOLSHEVIK REVOLUTION PRESIDENT BORIS YELTSIN IS TO GIVE THE KEYNOTE ADDRESS TO THE UPPER HOUSE PRIME MINISTER VIKTOR CHERNOMYRDIN WILL SUPPLY THE OPENING SPEECH TO THE LOWER HOUSE ANTIGOVERNMENT DEMONSTRATORS PLAN TO GATHER NEARBY TO PROTEST THESE EVENTS THEN THE LAWMAKERS WILL GET DOWN TO THE BUSINESS OF CHOOSING SPEAKERS FOR EACH HOUSE AND ORGANIZING A DEMOCRATIC LEGISLATURE'S USUAL PANOPLY OF COMMITTEES AND ORDERS OF BUSINESS WITH RADICAL DIFFERENCES ALREADY BUBBLING UP AMONG THE NEW LAWMAKERS THE FEELING IS THAT RUSSIA'S TODDLING LEGISLATURE HAD BETTER WATCH WHERE IT STEPS UNCERTAIN FUTURE CONFUSION AND DOUBT HANG OVER THE FUTURE OF THE PARLIAMENT A POLITICAL PARFAIT THAT CONTAINS NOT ONLY ADVOCATES OF REFORM BUT ALSO RUSSIA'S RESURGENT COMMUNISTS AND ASCENDANT FASCISTS IN A COALITION BASTED TOGETHER LAST WEEK COMMUNIST FASCIST AND OLDSTYLE SOCIALIST DEPUTIES COULD WIELD ABOUT 48 OF THE VOTE IN THE POWERFUL LOWER HOUSE OR STATE DUMA GIVEN THE POTENTIAL RIFTS WITHIN THIS COALITION THAT MAY NOT BE ENOUGH TO SHAPE STATE POLICY BUT IT PROBABLY WILL BE ENOUGH TO OBSTRUCT FORWARD MOTION BY PRESIDENT YELTSIN AND THE VARIOUS REFORM FACTIONS THAT MAKE UP ABOUT ONETHIRD OF THE DUMA ASKED IF THERE'S CAUSE TO FEAR THAT RUSSIA'S NEW PARLIAMENT MIGHT END UP AS BIG AN OBSTACLE TO PROGRESS AS ITS PREDECESSOR DEPUTY SERGEI KOVALYOV A VETERAN OF THE PREVIOUS PARLIAMENT SAYS THERE IS SUCH A DANGER BUT WE HAVE TO TRY RUSSIA IS ABOUT TO REAP THE FRUITS OF A BIG HASTY AND RATHER SLOPPY POLITICAL MAKEOVER WHICH STARTED WITH EIGHT POLITICAL PARTIES FORMED HURRIEDLY IN THE TWO MONTHS BETWEEN OCT 4 WHEN MR YELTSIN ORDERED TROOPS TO STORM THE OLD PARLIAMENT'S HEADQUARTERS AND THE DEC 12 ELECTIONS THERE IS A NEW CONSTITUTION THAT HANDS MUCH STRONGER POWERS TO THE PRESIDENCY IT ALSO DEFINES THE ROLES OF THE LEGISLATURE'S WEAK UPPER HOUSE THE FEDERATION COUNCIL AND ITS STRONGER LOWER HOUSE THE STATE DUMA THE NAME DUMA IS TAKEN FROM THE LEGISLATURES OF LATE CZARIST DAYS THERE ARE EVEN NEW QUARTERS FOR THE TWOCHAMBER LEGISLATURE WHICH UNDER MR YELTSIN'S ORDERS WILL BE HOUSED IN TWO SEPARATE BUILDINGS THIS SETUP IS SEEN BY MANY HERE AS AN ATTEMPT BY MR YELTSIN TO FURTHER DILUTE THE STRENGTH OF THE LEGISLATURE THE DECISION TO RELOCATE THE PARLIAMENT WAS INCORRECT AND EVEN DANGEROUS SAYS MR KOVALYOV WHO EXPLAINS THAT THE SITUATION IS FRAUGHT WITH POTENTIAL FOR NEW CONFRONTATIONS BETWEEN PRESIDENT AND PARLIAMENT EVEN OVER SMALL ISSUES FOR ALL THAT IS NEW RUSSIA'S LAWMAKERS WILL BE FACING THE SAME OLD PROBLEMS THAT PRODUCED LAST YEAR'S POWER STRUGGLES RUSSIA'S ECONOMY IS STILL SUFFERING FROM DECLINING PRODUCTION FOURDIGIT ANNUAL INFLATION THE DECAY OF AN ALREADY SHODDY INFRASTRUCTURE RISING CRIME AND CORRUPTION AND A GOVERNMENT THAT KEEPS REWRITING THE RULES BY WHICH IT WILL GOVERN ALL THIS IS SETTING THE SCENE FOR NEW SHOWDOWNS I WOULD LIKE TO SEE NO MORE CONFRONTATION BETWEEN DIFFERENT FACTIONS SAYS DEPUTY MICHAEL LEMESHEV A FIRSTTIME PARLIAMENTARIAN WHO IS BROWSING AMONG THE REGISTRATION TABLES IN THE DUMA LOBBY BUT MR LEMESHEV FURTHER IDENTIFIES HIMSELF AS A MEMBER OF THE LIBERAL DEMOCRATIC PARTY WHOSE LEADER VLADIMIR ZHIRINOVSKY HAS BEEN COURTING SHOWDOWNS FOR YEARS CURRENTLY INFAMOUS IN THE WEST FOR HIS PROPOSALS TO RESTORE RUSSIAN DIGNITY BY INVADING FINLAND ALASKA AND THE BALTIC COUNTRIES MR ZHIRINOVSKY HAS BEEN PROMISING THAT HE WILL USE HIS RELATIVELY LARGE BLOCK OF 64 SEATS IN THE 450SEAT DUMA TO LEVER HIMSELF INTO THE JOB AS HEAD OF THE FOREIGN RELATIONS COMMITTEE OR MAYBE FOREIGN MINISTER MR ZHIRINOVSKY'S CHIEF OPPONENTS IN THE DUMA THE REFORM PARTY RUSSIA'S CHOICE HAVE BEEN FIGHTING BACK TALKS BREAK DOWN THIS WEEKEND RUSSIA'S CHOICE LEADERS WALKED OUT ON TALKS AIMED AT CHOOSING HOUSE LEADERS TOGETHER WITH THE COMMUNIST LIBERAL DEMOCRATIC AND AGRARIAN PARTIES IN A NEWS BRIEFING YESTERDAY RUSSIA'S CHOICE LEADER YEGOR GAIDAR WHO IS ALSO ONE OF MR YELTSIN'S FIRST DEPUTY PRIME MINISTERS EXPLAINED THAT HIS PARTY HAD BROKEN OFF NEGOTIATIONS BECAUSE THEY WERE INCREASINGLY TURNING INTO SESSIONS WHERE A DISTINCTLY OUTLINED BLOC OF COMMUNISTS AGRARIANS AND LDP REPRESENTATIVES SO TO SAY WERE TRYING TO PUSH FORWARD THEIR OWN PRIORITIES ENDORSING THEM WITH THE MORAL SUPPORT OF RUSSIA'S CHOICE MR GAIDAR LABELED MR ZHIRINOVSKY'S NATIONALIST PROPOSALS A CALL FOR WAGING WAR AND SUGGESTED THAT LAW ENFORCEMENT BODIES SHOULD IMMEDIATELY TAKE LEGAL MEASURES TO ASSESS THIS PROPAGANDA OF WAR IN CRIMINAL TERMS FAR MORE PRONOUNCED SHOWDOWNS MAY BE IN THE CARDS THE COMMUNIST PARTY HAS BEEN PUSHING FOR THE PARLIAMENT AS ONE OF ITS FIRST ORDERS OF BUSINESS TO HOLD A NOCONFIDENCE VOTE IN MR YELTSIN'S GOVERNMENT MR YELTSIN HOWEVER HOLDS THE POWER UNDER CERTAIN CONDITIONS IN THE NEW CONSTITUTION TO DISSOLVE PARLIAMENT HOW THESE PROSPECTS MIGHT PLAY OUT IS HIGHLY UNPREDICTABLE BECAUSE MUCH DEPENDS ON WHAT KIND OF COALITIONS THE LAWMAKERS CONCOCT THE UPPER HOUSE REPRESENTS MAINLY REGIONAL INTERESTS AND DOES NOT LEND ITSELF TO ANY CLEAR PARTY BLOCK IN THE LOWER HOUSE ALONG WITH EIGHT PARTIES ACCOUNTING FOR AT LEAST HALF THE SEATS IN THE DUMA THERE ARE ALSO A SUBSTANTIAL NUMBER OF INDEPENDENTS WHO COULD BE WOOED BY DIFFERENT PARTIES EVEN WITHIN THE PARTIES SAYS ONE WESTERN DIPLOMAT HERE I DON'T THINK THEY'LL GET DISCIPLINE THIS IS RUSSIA 9401110008 940111 JUNTA'S HELPER SHUNNED BY THE WEST BURMA'S RULERS FIND AN ALLY IN MANHATTAN IS MIRIAM SEGAL A VISIONARY A PAWN OF RANGOON OR JUST A SAVVY OPERATOR FRIENDSHIP FORGED IN SHRIMP BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL RANGOON BURMA HE CALLS HER MIRIAM SHE CALLS HIM MY GENERAL SHE'S A WEALTHY NEW YORKER WHOSE FORMER FIFTH AVENUE OBJETS D'ART BOUTIQUES BLOSSOMED INTO BURMESE BUSINESS DEALS HE'S A DEVOUT BUDDHIST WHOSE JETFLYING LESSONS AT NEVADA'S NELLIS AIR FORCE BASE EVENTUALLY PROPELLED HIM TO NO 2 IN BURMA'S AIR FORCE AND THEN INTO THE UNLIKELY JOB OF MINISTER OF LIVESTOCK BREEDING AND FISHERIES THEIR LIAISON HAS ALL THE MAKINGS OF A CONVOLUTED BURMESE CINEMA CLASSIC EXCEPT ONE WHAT BRINGS MIRIAM MARSHALL SEGAL AND BRIG GEN MAUNG MAUNG TOGETHER ISN'T LOVE IT'S SHRIMP A TINY JOINT VENTURE PROCESSING THEM FOR EXPORT THE SETTING IS A LUSH TEXASSIZED NATION OF 42 MILLION PEOPLE THAT WAS SEALED OFF FROM THE MODERN WORLD FOR NEARLY THREE DECADES WRACKED BY SPUTTERING CIVIL WARS FOUGHT BY COMMUNIST INSURGENTS AND SECESSIONIST HILL TRIBES MISRULED SINCE 1962 BY A MILITARY DICTATOR AND ECONOMICALLY RUINED BY HIS SOCALLED BURMESE WAY OF SOCIALISM ONCE THE WORLD'S BIGGEST RICE EXPORTER BURMA SANK INTO NEAR BANKRUPTCY A RESOURCERICH BUT UNDEVELOPED SOUTHEAST ASIAN AFTERTHOUGHT WHERE TIME STOOD STILL WATER BUFFALO STILL PLOW FIELDS AND ELEPHANTS HAUL LOGS RANGOON A COMMERCIAL AND SOCIAL MECCA WHEN SINGAPORE AND BANGKOK WERE MALARIAL SWAMPS AND OPIUM DENS SANK INTO MOLDY DECAY NOW LIKE CHINA AND VIETNAM BURMA HAS BEGUN TO OPEN UP AND STIR MARKETORIENTED REFORMS HAVE BEGUN TO MOVE A MORIBUND ECONOMY SPROUT PRIVATE BURMESE ENTREPRENEURS AND LURE FOREIGN INVESTORS AND BURMESE EXPATRIATES THE US EMBASSY CALLED LAST YEAR'S REPORTED 109 GROWTH IN GROSS DOMESTIC PRODUCT A STUNNING RECOVERY FROM YEARS OF SLOW OR NEGATIVE GROWTH AUTHORITIES HAVE STRUCK CEASEFIRE DEALS WITH NINE OF 11 MAJOR ETHNIC INSURGENT GROUPS IT HAS BEEN FIGHTING SINCE THE END OF WORLD WAR II THEREBY OPENING ASIA'S LAST FRONTIER WILDERNESS AREA FOR DEVELOPMENT REGIONAL INVESTORS AND GOVERNMENTS ARE ACTIVELY PLANNING A GOLDEN RECTANGLE OF ECONOMIC BOOM WHERE BURMA CHINA LAOS AND THAILAND COME TOGETHER AN AREA LONG KNOWN AS THE OPIUMGROWING GOLDEN TRIANGLE A HUGE THAIFINANCED CASINO IS UNDER CONSTRUCTION THERE NOW THERE'S ONLY ONE PROBLEM HERE BURMA IS RULED BY ONE OF THE WORLD'S MOSTLOATHED MILITARY JUNTAS A GROUP OF 22 GENERALS WHO SEIZED POWER IN 1988 UNDER THE BANNER OF THE STATE LAW AND ORDER RESTORATION COUNCIL OR SLORC AND PROCEEDED TO MOW DOWN HUNDREDS OF UNARMED STUDENTS AND OTHER PRODEMOCRACY DEMONSTRATORS IMPRISON THOUSANDS MORE AND SEND TENS OF THOUSANDS FLEEING INTO EXILE WHICH BRINGS US BACK TO OUR MAIN CHARACTERS GEN MAUNG MAUNG A GENTLE MAN WITH A READY SMILE ISN'T A MEMBER OF SLORC BUT AS A CABINET MINISTER HE WORKS FOR SLORC WHICH IS DESPERATE TO EARN HARD CURRENCY SEAFOOD EXPORTS HE SAYS COULD QUICKLY BECOME THE COUNTRY'S BIGGEST HARDCURRENCY EARNER MEANWHILE HIS PARTNER MRS SEGAL HAS BECOME SLORC'S MOST PASSIONATE AMERICAN DEFENDER EVEN THOUGH SHE DESCRIBES HERSELF AS NOT A POLITICAL PERSON AT ALL SHE HAS ALSO BECOME ONE OF THE MOST VISIBLE AMERICAN INVESTORS IN BURMA WHILE OTHERS FILE SHAREHOLDER RESOLUTIONS CALLING FOR CORPORATE WITHDRAWAL FROM BURMA OF ITS BIGGEST AMERICAN INVESTORS INCLUDING TEXACO INC UNOCAL CORP AND AMOCO CORP MRS SEGAL IS RUNNING A ONEWOMAN CRUSADE TO GET AMERICANS MORE INVOLVED SHE HAS TESTIFIED BEFORE CONGRESS ON SLORC'S BEHALF FETED BURMESE GOVERNMENT DELEGATIONS AT HER CENTRAL PARK WEST APARTMENT IN MANHATTAN BUTTONHOLED POLITICIANS PENNED POSITION PAPERS AND LETTERS TO EDITORS AND BENT TELEPHONE EARS ARGUING THAT SLORC IS THE MUCHMALIGNED VICTIM OF BAD DIPLOMACY AND BIASED JOURNALISM SHE WANTS THE US TO GRANT BURMA MOSTFAVOREDNATION TRADING STATUS AND ADOPT THE KIND OF CONSTRUCTIVE ENGAGEMENT THAT SINGAPORE THAILAND AND CHINA HAVE FOLLOWED TROUBLE IS THIS IS THE SAME SLORC THAT PRESIDENT CLINTON ACCUSED IN MAY OF CREATING A TRAGIC HUMANRIGHTS SITUATION HE ORDERED A POLICY REVIEW WITH A VIEW TOWARD IMPOSING ECONOMIC OR OTHER SANCTIONS SLORC SAYS REP JIM LEACH A REPUBLICAN FROM INDIANA IS AS ODIOUS AS ITS NAME SOUNDS REPUBLICAN REP DANA ROHRABACHER OF CALIFORNIA SAYS IT DESERVES GANGSTER STATUS AND THE LAST US AMBASSADOR TO BURMA BURTON LEVIN CALLS SLORC A COLLECTION OF THUGS AND DOPES THE US AND OTHER GOVERNMENTS EXCORIATE SLORC FOR CONTINUING HUMANRIGHTS ABUSES AND EMBARGO FOREIGN AID HUMAN RIGHTS WATCH CALLS IT A HUMANRIGHTS PARIAH NOTING THAT IT HAS KEPT AUNG SAN SUU KYI A NOBEL PEACE PRIZEWINNING POLITICAL OPPONENT UNDER HOUSE ARREST FOR 4 1/2 YEARS SLORC SAYS SHE'S FREE TO LEAVE THE COUNTRY ANYTIME CRITICS OF SLORC DISMISS THE 53YEAROLD MRS SEGAL AS A MISLED MANHATTAN BAUBLEHEAD WHO IS EITHER BEING USED BY A CYNICAL REGIME OR IS A CYNIC HERSELF WHO IS COYLY EMBRACING SLORC TO MAKE MONEY SHE CALLS HERSELF AN ALTRUISTIC MONEYMAKER INTERESTED IN BOTH PROFITING AND HELPING LAST JUNE SHE SET UP A 100000 SCHOLARSHIP FUND FOR BURMESE STUDENTS AT BROWN UNIVERSITY MEANWHILE THE COMPANY SHE HEADS MMAI HOLDINGS LTD HAS INVESTED MORE THAN 4 MILLION IN BURMESE VENTURES INCLUDING THE SHRIMP PLANT A FISHING VENTURE AND A CEMENTBAGGING FACILITY THE FIRM REGISTERED IN THE BRITISH WEST INDIES INCLUDES AS A PARTNER THE PEREGRINE MERCHANTBANKING GROUP OF HONG KONG AND 10 FRIENDS OF MRS SEGAL IT IS ALSO NEGOTIATING HOTEL TIMBER DUTYFREE CELLULAR PHONE AIRCRAFT REPAIR EXPATRIATE HOUSING CONSTRUCTION CAR DEALERSHIP AND PHARMACEUTICAL IMPORT VENTURES SHE SAYS SHE ALSO HOPES TO SET UP A CONSULTING COMPANY TO HELP OTHER FOREIGNERS INVEST DON'T SELL HER SHORT SAYS GERALDINE STUTZ FORMER PRESIDENT OF HENRI BENDEL THE NEW YORK FASHION STORE IN WHICH MRS SEGAL OPENED THE SUCCESSFUL PORTS OF CALL BOUTIQUE IN THE MID1960S ANOTHER FRIEND STANLEY MARCUS OF NEIMAN MARCUS SAYS HOWEVER SHE'S SMART AS THE DEVIL ON MATTERS OF FASHION AND TASTE BUT I WOULDN'T APPOINT HER SECRETARY OF STATE NEVERTHELESS MRS SEGAL ARGUES THAT THE US PUNISHES SLORC BY WITHHOLDING AN AMBASSADOR DENYING AID AND TRYING TO ISOLATE THE REGIME BUT NOT THE MASTERMINDS OF CHINA'S TIANANMEN SQUARE MASSACRE IF THE US THINKS DIPLOMATIC AND ECONOMIC ENGAGEMENT IN CHINA WILL HELP THE CAUSES OF DEMOCRACY AND HUMAN RIGHTS WHY NOT IN BURMA TOO SHE ASKS UNLIKE WITH VIETNAM THE US HASN'T IMPOSED A TRADE EMBARGO ON BURMA MRS SEGAL WHO BEGAN IMPORTING BURMESE HANDICRAFTS IN 1978 SAYS SHE DIDN'T START DOING BATTLE FOR THEM UNTIL 1991 WHEN SHE BEGAN TO SEE POSITIVE CHANGES AND BECAME CONVINCED THAT THE NEW GENERATION OF GENERALS RUNNING SLORC WAS SINCERE WITHOUT FOREIGN AID SHE SAYS THEY HAVE DONE MORE TO OPEN UP AND IMPROVE BURMA IN THE PAST THREE YEARS THAN THEIR PREDECESSORS DID IN THE PREVIOUS 30 SHE HAS A POINT THEIR PREDECESSOR AND MENTOR GEN NE WIN SEIZED POWER IN 1962 AND LAUNCHED THE DISASTROUS BURMESE WAY OF SOCIALISM AND OTHER POLICIES WITH WHAT HISTORIANS CALL EXTRAORDINARY INEPTITUDE NOT TO MENTION KEEN ATTENTION TO HIS ASTROLOGER NE WIN'S 1987 DEMONETIZATION OF LARGE BANKNOTES WHICH WIPED OUT THE SAVINGS OF MANY THERETOFORE NONPOLITICAL BURMESE TRIGGERED THE 1988 PRODEMOCRACY DEMONSTRATIONS HIS RETIREMENT SLORC'S TAKEOVER AND ITS CRACKDOWN COMPARED TO NE WIN THE MEN OF SLORC COME ON LIKE PROGRESSIVE REFORMERS HOWEVER SLORC BESMIRCHED ITSELF NOT ONLY BY ITS BRUTAL 1988 CRACKDOWN LIKE CHINA IT ARGUED THE NATION WAS HEADED FOR CHAOS AND ANARCHY BUT ALSO FOR ITS HANDLING OF ELECTIONS IN 1990 SLORC'S PARTY GOT TROUNCED BY A PRODEMOCRACY COALITION INSTEAD OF STEPPING DOWN SLORC VOIDED THE VOTE DECLARING IT WOULD CONTINUE RULING BY DECREE UNTIL A NEW CONSTITUTION WAS DRAFTED BY A SLORCCONTROLLED CONVENTION AT WHICH CRITICISM OF THE GOVERNMENT IS OFFICIALLY OUTLAWED INDEED IN OCTOBER A CONVENTION DELEGATE AND 10 OF HIS NONDELEGATE SUPPORTERS WERE SENTENCED TO 20 YEARS IN PRISON FOR DISTRIBUTING SUPPOSEDLY SUBVERSIVE LEAFLETS AMONG OTHER DELEGATES SLORC SAYS THEY WERE THREATS MRS SEGAL WHO WASN'T IN BURMA DURING EITHER THE 1988 CRACKDOWN OR THE 1990 ELECTION DOESN'T DEEM SLORC FAULTLESS UNFORTUNATELY ONE OUTDATED PICTURE ONE STILL SHOT FROZEN IN TIME SEEMS TO RIVET EVERYONE'S ATTENTION SHE WRITES WHILE SLORC'S POSITIVE STEPS SINCE THEN GO UNHEEDED SOME DIPLOMATS IN RANGOON AGREE AND HAVE BEGUN TO MUTE PREVIOUSLY HARSH CRITICISM THESE PEOPLE AREN'T SYRIA NORTH KOREA OR IRAQ SAYS ONE IT'S MORE PINOCHET THAN POL POT SAYS ANOTHER OTHERS EVEN PRAISE SLORC'S ENERGY AND HARD WORK ITS REPORTED RELEASE OF MORE THAN 2000 POLITICAL PRISONERS ITS EFFORTS AT NARCOTICS SUPPRESSION BURMA IS THE WORLD'S BIGGEST OPIUM PRODUCER EVEN ITS ENLIGHTENED POLICIES IN PRESERVING ITS TEAK FORESTS BURMA HAS ABOUT 75 OF THE WORLD'S TEAK RESERVES SLORC'S LEASTBELIEVED ASSERTION IS THAT IT WILL RESTORE DEMOCRACY ALBEIT WITH THE MILITARY PLAYING A LEADING ROLE IN FUTURE GOVERNMENTS THE OBVIOUS MODEL IS INDONESIA INDEED SLORC'S POWERFUL FIRST SECRETARY THE 55YEAROLD LT GEN KHIN NYUNT LED A FIVEMAN DELEGATION TO INDONESIA JUST BEFORE CHRISTMAS AND AFTER A MEETING WITH PRESIDENT SUHARTO A FORMER REVOLUTIONARY GENERAL HIMSELF CALLED INDONESIA A MODEL OF STABILITY FOR BURMA ACTUALLY BURMA TODAY MORE RESEMBLES INDONESIA 25 YEARS AGO WHEN SUHARTO AND HIS FELLOW GENERALS BROOKED NO OPPOSITION IN THE WAKE OF A BLOODBATH AGAINST SUSPECTED COMMUNISTS THAT LEFT HUNDREDS OF THOUSANDS DEAD AND TENS OF THOUSANDS MORE IN PRISON INDONESIA'S RULERS IN THOSE DAYS HOWEVER HAD TWO THINGS GOING FOR THEM THAT SLORC DOESN'T FIRST THE COLD WAR ALLOWED WESTERN AID TO POUR IN WITH ONLY TOKEN ATTENTION TO HUMAN RIGHTS SECOND INDONESIA HAD A TEAM OF ENLIGHTENED ECONOMIC PLANNERS EDUCATED IN THE WEST AND DEDICATED TO SUHARTO'S COMMITMENT TO NATIONAL DEVELOPMENT NO SUCH COMPETENCE APPEARS TO EXIST IN BURMA FEEDING CRITICS WHO CONTEND THE ANNOUNCED POLICIES ARE MERE WINDOW DRESSING MEANWHILE SLORC TOLERATES NO POLITICAL DISSENSION THEY'VE RELEASED SOME POLITICAL PRISONERS BUT ONLY THE PEOPLE THEY DON'T FEAR SAYS A DIPLOMAT ORGANIZED OPPOSITION HAS BEEN DECIMATED AT LEAST 27 OPPOSITION POLITICIANS ELECTED IN 1990 REMAIN IN PRISON DIPLOMATS AND BURMESE IN RANGOON SAY SLORC FEARS SOME SORT OF SPONTANEOUS UPRISING AND THEREFORE RULES THROUGH INTIMIDATION ITS NETWORK OF INFORMANTS REPORTING TO THE MILITARY'S VAST INTELLIGENCE APPARATUS WHILE OFFICIALS SAY BURMESE CAN TALK FREELY SEVERAL SLORC OPPONENTS DECLINED TO SPEAK TO OR EVEN BE SEEN WITH A VISITING REPORTER SAYING THROUGH FAMILY MEMBERS OR FRIENDS THAT THEY FEARED REPRISALS THOSE WILLING TO TALK DID SO AT MEETINGS AT OTHER PEOPLES' HOUSES OR OFFICES MUCH THE SAME WAY DISSIDENTS MET JOURNALISTS IN BEIJING SEOUL TAIPEI JAKARTA AND SINGAPORE IN THE PAST ALL THOSE PLACES HOWEVER MANAGED TO BLUNT HUMANRIGHTS CRITICISM WITH STEADY IMPROVEMENTS IN LIVING STANDARDS ECONOMIC RESULTS IN BURMA CONTINUE TO BE MOSTLY THEORETICAL FOR ALL BUT A TINY CLASS OF BUDDING ENTREPRENEURS WHEN SLORC ABANDONED SOCIALISM AND OPENED THE COUNTRY TO FOREIGN INVESTORS IN 1988 INVESTORS WERE SLOW TO ARRIVE THIS WAS POSSIBLY BECAUSE IN A MOVE OF EXTRAORDINARY INEPTITUDE SLORC RENAMED THE COUNTRY MYANMAR BURMA WAS THE NAME BRITISH COLONIALISTS CHOSE THEREBY LOWERING ITS PROFILE CONSIDERABLY NEVERTHELESS SLORC SAYS NEARLY 2 BILLION IN INVESTMENTS MOST OF THEM IN OIL AND GAS PROJECTS AND TOURIST HOTELS HAS BEEN PLEDGED MUCH OF IT IN THE PAST TWO YEARS THE GOVERNMENT SAYS IT WANTS TO BUILD A SKI RESORT IN THE BURMESE HIMALAYAS THUS FAR SLORC HAS CONCENTRATED ITS EFFORTS ON UNIFYING A NATION THAT BRITISH COLONIALISTS IN 1948 LEFT DEEPLY DIVIDED INTO ETHNIC ENCLAVES STARTING WITH THE WA GROUP WHICH TURNED AGAINST ITS BURMESE COMMUNIST PARTY OVERLORDS IN 1989 SLORC HAS OFFERED LIMITED REGIONAL AUTONOMY AND DEVELOPMENT AID IN EXCHANGE FOR PEACE THE POWERFUL KACHINS ARE THE LATEST TO MAKE A DEAL THE TWO HOLDOUTS THE KARENS AND MONS ARE WAVERING IN RANGOON OVER THE CHRISTMAS HOLIDAYS MEANWHILE MRS SEGAL HAS BEEN BUSILY PURSUING HER BUSINESS INTERESTS IN HER YEARS OF BUYING BURMESE HANDICRAFTS SHE GOT TO KNOW MANY OF THE MEN WHO NOW RUN THE COUNTRY IN 1990 WITH SLORC EAGER TO DEMONSTRATE ITS OPENNESS TO FOREIGN INVESTORS BUT OUTSIDERS STILL LEERY MRS SEGAL SIGNED A JOINT VENTURE WITH GEN MAUNG MAUNG'S FISHERIES MINISTRY FOR EXCLUSIVE FISHING RIGHTS TO SOME 400000 SQUARE MILES OF DEEPWATER OFFSHORE TERRITORY THE COMPANY NAMED THE MYANMAR AMERICAN FISHERIES COMPANY MAFCO SUBSEQUENTLY SUBLET THE RIGHTS TO A CHINESE TRAWLING COMPANY BASED IN SPAIN WANG KAI DI CHINA'S ECONOMIC AND COMMERCIAL ATTACHE IN RANGOON SAYS HE HELPED PERSUADE THE CHINESE COMPANY TO JOIN MAFCO BECAUSE AROUND RANGOON MRS SEGAL HAD A LOT OF GANXI THE CHINESE WORD FOR CONNECTIONS AND PULL THE CHINESE BEGAN FISHING IN OCTOBER MRS SEGAL'S 16PAGE PRESS KIT WHICH SHE PROFFERS IN LIEU OF A RESUME INCLUDES PHOTOS AND NEWSPAPER CLIPS OF HER MEETINGS WITH TOP BURMESE OFFICIALS INCLUDING GEN KHIN NYUNT AND U KO LAY RANGOON'S MAYOR THE BIOGRAPHICAL SECTION DESCRIBES HER AS BEING AN ACCOMPLISHED PERSON WHO RODE AT THE FRONTIERS OF AND EXEMPLIFIED THE TRENDS OF HER TIMES THE MONTREAL GAZETTE IS QUOTED AS ATTRIBUTING HER BUSINESS SUCCESS TO HER ABILITY TO ADAPT MYSTERIOUS EASTERN OBJECTS TO THE WAY OF LIFE OF UPPERCRUST NORTH AMERICANS GEN MAUNG MAUNG MET SOME OF THE LATTER IN A VISIT TO THE US IN APRIL THAT MRS SEGAL ARRANGED THE FIRST BY A BURMESE OF CABINET RANK IN 33 YEARS SHE HAS ALSO DEVELOPED AN ABILITY TO EXPLAIN EASTERN WAYS WHEN AN ASIAN MAGAZINE PUBLISHED PHOTOS RECENTLY OF BURMESE CHAIN GANGS BUILDING ROADS SHE TELEPHONED A REPORTER FROM HONG KONG TO SAY THOSE ARE MURDERERS AND DRUG ADDICTS NOT POLITICAL PRISONERS 9401110007 940111 SHARE PRICES PLUNGE 63 IN MEXICO INVESTORS ARE SHAKEN BY UNREST IN CHIAPAS AND NATION'S CAPITAL BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY SHAKEN BY THE UPRISING IN THE STATE OF CHIAPAS AND INCIDENTS OF TERRORISM IN THE CAPITAL INVESTORS FLED MEXICAN STOCKS YESTERDAY SENDING THE MARKET INTO ITS WORST DROP IN MORE THAN FOUR YEARS THE MEXICAN MARKET'S KEY IPC INDEX WAS OFF 16592 POINTS AT 245911 A LOSS OF 63 VOLUME WAS A MODERATELY HEAVY 1339 MILLION SHARES THE DOW JONES MEXICO INDEX LOST 1156 POINTS OR 62 TO 17609 A SERIES OF TERRORIST BOMBINGS IN THE CAPITAL AND IN OTHER LOCALES OVER THE WEEKEND SEEMED TO HEIGHTEN INVESTORS' FEARS THAT SOCIAL UNREST IS SPREADING IN MEXICO AND LATE YESTERDAY PRESIDENT CARLOS SALINAS DE GORTARI ANNOUNCED A DRAMATIC SHAKEUP OF HIS CABINET REPLACING HIS MINISTER OF THE INTERIOR PATROCINIO GONZALEZ A FORMER GOVERNOR OF CHIAPAS THE PROBLEM IS DEFINITELY BIGGER THAN PEOPLE THOUGHT SAID SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT WITH TERRORIST GROUPS NOW ALIGNING WITH THE CHIAPAS GUERRILLAS THE UPHEAVAL HAS TURNED INTO SOMETHING THAT IS GOING TO LAST FOR MONTHS HE SAID THE QUESTION NOW IS WHAT WILL BE THE ECONOMIC IMPACT ON MEXICO CERTAINLY MEXICO WON'T ESCAPE THE EVENTS OF JANUARY WITHOUT SOME ECONOMIC EFFECT IF FOREIGN INVESTORS START AN EXODUS OUT OF MEXICAN ASSETS THEN SHORTTERM INTEREST RATES WHICH HIT THEIR LOWEST LEVELS EVER LAST MONTH WOULD CERTAINLY HAVE TO CLIMB TO ATTRACT THEM BACK A RISE IN INTEREST RATES COULD SLOW A MUCHNEEDED RECOVERY IN THE ECONOMY HERE PROMPTING MORE SELLING IN THE STOCK MARKET MR SANCHEZ GARCIA SAID THAT AT THE LEAST THE GOVERNMENT WILL RESORT TO HIGHER SPENDING IN 1994 THAT WILL PUSH THE COUNTRY INTO A FISCAL BUDGET DEFICIT OF 1 TO 2 OF GROSS DOMESTIC PRODUCT THAT WILL KEEP MEXICAN INFLATION FROM FALLING LOWER THAN ITS CURRENT LEVEL OF ABOUT 8 HE SAID DOMESTIC INVESTORS TRADERS SAID WERE HEAVIER SELLERS THAN FOREIGNERS YESTERDAY IF YOU LOOK AT THE STOCKS THAT REALLY GOT HIT IT WAS THOSE HELD BY LOCAL INVESTORS SAID JONATHAN BEATSONHIRD DIRECTOR OF LATIN AMERICAN EQUITIES AT BARING SECURITIES MEXICAN INVESTORS TYPICALLY HOLD A DIFFERENT CLASS OF SHARES THAN FOREIGN INVESTORS A SIGN THAT THERE WAS NO LARGE FLIGHT OF FOREIGN CAPITAL OUT OF MEXICO WAS SEEN IN THE MODERATE DROP IN THE PESO THE CURRENCY DECLINED SLIGHTLY MORE THAN ONE CENTAVO TO 31145 PESOS AGAINST THE DOLLAR COMPARED WITH 31040 PESOS FRIDAY IT IS A VERY NERVOUS PESO MARKET BUT THERE HASN'T BEEN LARGE SELLING SAID JOHN LIEGEY PRESIDENT OF WESTIN GROUP IN NEW YORK MEXICAN GOVERNMENT BANK DEBT REPACKAGED INTO BRADY BONDS ALSO FELL YESTERDAY THE BENCHMARK 30YEAR MEXICAN PAR BOND FELL TO 83 1/8 DOWN ABOUT 1/2 POINT OR 5 FOR EACH 1000 FACE AMOUNT MEXICAN STOCK INVESTORS HAVE A BIG INCENTIVE TO TAKE PROFITS MANY ISSUES SUCH AS CEMENT MAKER APASCO WERE UP MORE THAN 100 LAST YEAR MOST OF US HAVE HUGE GAINS SAID PABLO MANCERA DE A TREASURER OF GRUPO SANTANDER MEXICO AND MANAGER OF THE EMERGING MEXICO FUND THE STOCK MARKET WAS OVERVALUED A CORRECTION WOULD HAVE COME ANYWAY HE SAID ADDING THAT MANY MEXICAN COMPANIES WILL REPORT WEAK FOURTHQUARTER EARNINGS IN COMING DAYS AMONG SPECIFIC MEXICAN SHARES TELEFONOS DE MEXICO FELL 1 1/8 TO 65 1/2 ON THE NEW YORK STOCK EXCHANGE ON REPORTS THAT THE MEXICAN GOVERNMENT IS PLANNING THE SALE OF ITS REMAINING STAKE IN THE COMPANY GLASS MAKER VITRO TUMBLED 3/4 TO 21 1/2 ON THE BIG BOARD ON THE MEXICAN BOLSA CONGLOMERATE GRUPO CARSO FELL 1 PESO TO 3150 PESOS 1030 CLASS C SHARES OF RETAILER CIFRA FELL 14 CENTAVOS TO 872 PESOS BANACCI CLASS C SHARES FELL 50 CENTAVOS TO 2850 PESOS 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 9401110006 940111 INTERNATIONAL BRIEF LADBROKE GROUP PLC FIRM FINANCIAL GROUP MAI BID TO RUN BRITISH LOTTERY UK HOTELS AND LEISURE COMPANY LADBROKE GROUP PLC AND FINANCIAL INVESTMENT GROUP MAI PLC ANNOUNCED THEIR ANTICIPATED BID TO OPERATE BRITAIN'S EMBRYONIC NATIONAL LOTTERY THE TWO GROUPS HAVE STARTED A JOINT VENTURE GAMES FOR GOOD CAUSES PLC SUPPORTED BY FINANCIAL ADVISER KLEINWORT BENSON AND A JOINT VENTURE BETWEEN AMERICAN TELEPHONE & TELEGRAPH CO AND AT&T'S NCR CORP LADBROKE SAID IT EXPECTS 1 BILLION 149 BILLION A YEAR COULD BE GENERATED FOR CHARITY AND 500 MILLION 7468 MILLION FOR TAXPAYERS THE LOTTERY IS EXPECTED TO BECOME THE WORLD'S LARGEST 60 OF BRITISH ADULTS ARE EXPECTED TO PLAY EVERY WEEK LADBROKE AND MAI WOULD OWN ONETHIRD OF THE EQUITY IN THE VENTURE WITH INSTITUTIONAL INVESTORS HOLDING THE REMAINDER LADBROKE SAID THE CHIEF EXECUTIVE OF GAMES FOR GOOD CAUSES WOULD BE MALCOLM HUGHES MANAGING DIRECTOR OF ITS VERNONS POOL UNIT FOR THE PAST FOUR YEARS IN LONDON STOCK EXCHANGE TRADING LADBROKE CLOSED AT 200 PENCE 2987 UP SIX PENCE 9401110005 940111 INTERNATIONAL HOUSE OF FRASER LAWSUIT IMPLICATES UK'S LONRHO LONDON A SUIT IN BRITAIN'S HIGH COURT ALLEGES THAT BRITISH CONGLOMERATE LONRHO PLC PAID ABOUT 550000 821425 TO A SENIOR EXECUTIVE OF HOUSE OF FRASER HOLDING PLC TO SUPPLY DAMAGING INFORMATION TO GOVERNMENT REGULATORS ABOUT HIS OWN COMPANY THE SUIT CLAIMS LONRHO PAID THE MONEY TO GRAHAM JONES FORMERLY CHIEF FINANCIAL OFFICER OF HOUSE OF FRASER TO HELP LONRHO CHALLENGE THE 1985 ACQUISITION OF HOUSE OF FRASER BY THE FAYED BROTHERS LONRHO'S FAILED BID TO BUY THE RETAILING GROUP WHICH INCLUDES THE FAMOUS HARRODS DEPARTMENT STORE LED TO A NASTY EIGHTYEAR STRUGGLE AGAINST THE FAYEDS ACCORDING TO THE SUIT FILED BY HOUSE OF FRASER AGAINST ITS FORMER OFFICER MR JONES WROTE TO THE BANK OF ENGLAND SAYING THAT THE FAYEDS HAD TRIED TO CIRCUMVENT BANKING REGULATIONS LATER A GOVERNMENT INVESTIGATION FOUND THAT THE FAYEDS HAD MISREPRESENTED THEIR ORIGINS WEALTH AND BUSINESS INTERESTS THE BANK OF ENGLAND IN JUNE 1991 FORCED THE FAYEDS TO SURRENDER MANAGEMENT CONTROL OF HARRODS BANK A SMALL BANKING SUBSIDIARY OF HOUSE OF FRASER ALTHOUGH THE BROTHERS RETAIN CONTROL OF ITS NONVOTING SHARES A SPOKESMAN FOR THE FAYEDS SAID THE SUIT SEEKS TO RECOVER SUBSTANTIAL DAMAGES FOR THIS BREACH OF CONTRACT MR JONES COULDN'T BE REACHED FOR COMMENT OFFICIALS OF LONRHO WHICH ISN'T A PARTY TO THE SUIT DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9401110004 940111 WHO'S NEWS FOX INC FOX INC BEVERLY HILLS CALIF BRUCE B CHURCHILL WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AT FOX THE ENTERTAINMENTPROGRAMMING AND BROADCASTING SUBSIDIARY OF NEWS CORP BASED IN AUSTRALIA HE SUCCEEDS LAWRENCE JACOBSON 34 YEARS OLD WHO WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION OF FOX BROADCASTING CO IN SEPTEMBER MR CHURCHILL 36 PREVIOUSLY WAS WITH PARAMOUNT TECHNOLOGY GROUP A UNIT OF PARAMOUNT PICTURES WHERE HE MANAGED THE GROUP'S STRATEGIC INVESTMENT UNIT 9401110003 940111 ECONOMY JOBS ARE PLENTIFUL IN SCATTERED AREAS OF US AND FOR THOSE WITH CERTAIN SKILLS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL HELP WANTED BANK TELLERS IN RALEIGH NC COMPUTER SALESPEOPLE IN NORTH SIOUX CITY SD AND TRUCK DRIVERS EVERYWHERE ON FRIDAY THE LABOR DEPARTMENT REPORTED THAT NATIONAL UNEMPLOYMENT REMAINS RELATIVELY HIGH AT 64 OF THE WORK FORCE IN DECEMBER BUT IN SOME SCATTERED INDUSTRY SECTORS AND REGIONS THERE ARE LABOR SHORTAGES AND JUST AS HIGH UNEMPLOYMENT CAN DAMAGE A REGION'S ECONOMY A TIGHT LABOR POOL CAN HAMPER GROWTH JUST ASK DEL WEBB CORP THE HOME BUILDER SAID ITS BUSINESS IS OFF IN THE PHOENIX AREA BUT ONLY BECAUSE IT LACKS ENOUGH WORKERS TO FILL ALL OF ITS ORDERS WITH THE RESURGENCE OF HOME BUILDING THROUGHOUT THE SOUTHWEST EXCEPT FOR CALIFORNIA WE'RE SEEING EVERYTHING FROM MINOR LABOR SHORTAGES TO SIGNIFICANT ONES SAID PHIL DION THE COMPANY'S CHAIRMAN IT'S DRIVING UP COSTS AND PRICES AND IN SOME CASES SKILLED LABORERS ARE MAKING A THIRD TO 50 MORE THAN TWO YEARS AGO REEVES NEBLETT CHAIRMAN OF SHELBY DIE CASTING CO IN SHELBY MISS SAID THAT ALTHOUGH THE UNEMPLOYMENT RATE IN HIS COUNTY EXCEEDS THE NATIONAL AVERAGE HE CAN'T FIND ENOUGH MACHINISTS AND TECHNICIANS WE'VE ADVERTISED AND WE'RE WILLING TO PAY PEOPLE MORE THAN SHELBY'S CURRENT 8 TO 12 HOURLY RATE HE SAID BUT IT'S TOUGH TO GET TRAINED WORKERS TO MOVE TO SHELBY ECONOMISTS SAY THAT WITH THE EXCEPTION OF THE TRUCKING INDUSTRY WHERE DEMAND FOR DRIVERS FAR EXCEEDS SUPPLY THE US AS A WHOLE WON'T FACE LABOR SHORTAGES ANYTIME SOON BUT IN SCATTERED SECTIONS OF THE COUNTRY AND IN SEGMENTED MARKETS FOR CERTAIN KINDS OF SKILLS THERE ARE LABOR BOTTLENECKS SAID ALLEN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS INC MR SINAI ATTRIBUTES THESE BOTTLENECKS PARTLY TO A WIDER VARIETY OF JOB ALTERNATIVES FOR PEOPLE IN THE LABOR FORCE AND TO SKILLED PEOPLE WHO THOUGH LAID OFF CAN AFFORD TO BE SELECTIVE ABOUT THE JOBS THEY TAKE BECAUSE THEY'RE CURRENTLY LIVING OFF SEVERANCE PACKAGES THE US EMPLOYMENT SERVICE HAS IDENTIFIED 10 OCCUPATIONS WHERE LABOR IS IN PARTICULARLY SHORT SUPPLY PRIMARYCARE PHYSICIANS FOR EXAMPLE ARE NEEDED IN WEST VIRGINIA CHEMISTS ARE IN DEMAND IN CALIFORNIA MASSACHUSETTS MISSOURI NEW JERSEY NEW YORK AND TEXAS AND CHINESE AND JAPANESE FOOD COOKS SHOULDN'T HAVE TROUBLE FINDING WORK IN PENNSYLVANIA TEXAS AND SEVERAL OTHER STATES BUT THAT JOB ROSTER IS FAR FROM COMPLETE FOR IT DOESN'T TAKE INTO ACCOUNT EMPLOYMENT NEEDS IN SPECIALIZED PROFESSIONS OR SPECIFIC LOCALES WORKERS ARE SO HARD TO COME BY IN SPRINGDALE ARK THAT TYSON FOODS INC A FOOD PROCESSOR BASED THERE SAID IT WILL HAVE TO GO ELSEWHERE TO BUILD FOUR POULTRY PLANTS THAT WILL EMPLOY MORE THAN 8000 PEOPLE WE'RE HAVING SO MUCH TROUBLE STAFFING THAT WE'RE NOT ABLE TO RUN SOME OF OUR OPERATIONS AT FULL CAPACITY SAID A SPOKESMAN FOR THE COMPANY THE REASON TYSON HAS BIG COMPETITION FOR WORKERS FROM THE NEARBY HEADQUARTERS OF WALMART STORES INC BASED IN BENTONVILLE ARK AND JB HUNT TRANSPORT SERVICES INC BASED IN LOWELL ARK ABOUT 200000 PEOPLE OR NEARLY A 10TH OF THE STATE'S POPULATION RESIDE IN THE TWO COUNTIES WHERE THE THREE COMPANIES ARE BASED UNEMPLOYMENT IN THE AREA IS AT A PALTRY 26 AND LABOR SHORTAGES OF ALL SORTS SEEM TO BE INTENSIFYING SAID STEVEN WARD PRESIDENT OF THE LOCAL CHAMBER OF COMMERCE SO TOO IN NORTH SIOUX CITY SD SOUTH SIOUX CITY NEB AND SIOUX CITY IOWA WHERE UNEMPLOYMENT FOR THIS AREA WITH A POPULATION A LITTLE OVER 100000 HOVERS AROUND 2 TED WAITT CHIEF EXECUTIVE OF GATEWAY 2000 A FASTGROWING MARKETER OF PERSONAL COMPUTERS SAID IT'S SO HARD TO FIND WORKERS IN THE SIOUX CITY AREA THAT GATEWAY RECENTLY WENT 70 MILES NORTH TO SIOUX FALLS SD TO EXPAND A PROBLEM YES BUT IT BEATS THE OLD DAYS SAID MR WAITT A NATIVE OF SIOUX CITY SEVERAL YEARS AGO HIS HOMETOWN DEPENDED CHIEFLY ON FARMING AND A BILLBOARD HERALDED THE VIRTUAL DEPRESSION AND LABOR GLUT AT HAND IT READ WILL THE LAST PERSON TO LEAVE SIOUX CITY PLEASE TURN OUT THE LIGHTS 9401110002 940111 MONDAY MARKETS STOCKS HIT RECORDS AS INTEREST RATES STAY LOW BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL CONVINCED THAT SHORTTERM INTEREST RATES WILL REMAIN LOW INVESTORS BULLDOZED STOCK PRICES TO HIGHS DRIVING THE DOW JONES INDUSTRIAL AVERAGE TO ITS FOURTH STRAIGHT RECORD BOND PRICES ENDED MODESTLY LOWER AND THE DOLLAR ROSE IN THE BIGGEST ONEDAY RALLY OF THE NEW YEAR THE DOW JONES INDUSTRIALS ROCKETED 4474 POINTS TO 386551 CLOSING AT ITS HIGH OF THE DAY IN VERY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SOARED 537 TO 47527 ALSO A HIGH AND THE NASDAQ COMPOSITE INDEX GAINED 375 TO 78669 FINISHING JUST SHY OF A RECORD SOME SPECIALIZED STOCK MARKET INDEXES ALSO TURNED IN RECORDBREAKING PERFORMANCES BENEFITTING FROM A DROP IN OIL PRICES TRANSPORTATION STOCKS RALLIED DRIVING THE DOW JONES TRANSPORTATION INDEX UP 2037 POINTS TO 181958 A HIGH THIS IS NOT A BAD MOVIE TO WATCH SAID JEFFREY APPLEGATE DIRECTOR OF EQUITY RESEARCH AT CS FIRST BOSTON DESPITE FEARS LOW INFLATION WOULD ROB COMPANIES OF THEIR PRICING POWER AND STUNT CORPORATE PROFITS THAT HASN'T BEEN THE CASE INSTEAD HE NOTED THAT A RAFT OF ECONOMIC REPORTS LAST WEEK INDICATED THAT WHILE JOB AND INCOME GROWTH AREN'T RIPROARINGLY STRONG CORPORATE PROFITS ARE LIKELY TO CONTINUE RISING THANKS TO VERY ROBUST WORKER PRODUCTIVITY THAT IS KEEPING A LID ON LABOR COSTS WHAT'S MORE SHORTTERM INTEREST RATES WHICH ARE THE LIFELINE OF THE STOCK MARKET ARE LIKELY TO REMAIN LOW I THINK INVESTORS ARE RECOGNIZING THAT THE ECONOMY IS NOT RUNNING AWAY SO THE RISK OF AN IMMINENT FED TIGHTENING AND LIFT IN INTEREST RATES IS NOT THE THREAT THAT MANY THOUGHT IT WAS A FEW WEEKS AGO SAID STEVEN EINHORN INVESTMENT STRATEGIST AT GOLDMAN SACHS INDEED ANALYSTS SAID THE LATEST EVIDENCE THAT RATES AREN'T DESTINED TO RISE SHARPLY CAME FRIDAY WITH THE WEAKERTHANEXPECTED EMPLOYMENT REPORT THAT ALLAYED WIDESPREAD WORRIES THAT THE FEDERAL RESERVE WOULD MOVE TO RAISE INTEREST RATES SOON RISING INTEREST RATES WOULD LIKELY CHOKE A RALLY IN STOCKS BY DRAWING MONEY OUT OF THE EQUITY MARKET AND INTO FIXEDINCOME INVESTMENTS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS SAID SHE THINKS THE DOW JONES INDUSTRIALS COULD CLIMB AS HIGH AS 4500 THIS YEAR AS LONG AS SHORTTERM INTEREST RATES STAY LOW AS SHE IS BETTING IF THAT'S THE CASE SOME OF THE MOST ATTRACTIVE AREAS OF THE STOCK MARKET WILL BE TRUCKING STOCKS REGIONAL BANKS AND SEMICONDUCTOR SHARES SHE SAYS NO DOUBT GAINS IN SOME IMPORTANT OVERSEAS MARKETS HELPED TO SET THE STAGE YESTERDAY FOR A RALLY IN US STOCKS IN ASIA HONG KONG STOCKS REBOUNDED 33 AFTER FALLING FOR THREE STRAIGHT DAYS THE SINGAPORE STOCK MARKET ROSE 25 AND MALAYSIA CLIMBED 13 MEANWHILE FOREIGN BUYING HELPED TO PUSH THE JAPANESE STOCK MARKET UP 18 BRINGING ITS CLIMB THIS YEAR TO 58 VOLATILITY IS GOING TO REMAIN IN THE REGION IN THE SHORT TERM SAID MICHAEL LAI AN INVESTMENT MANAGER AT LEHMAN GLOBAL ASSET MANAGEMENT LTD IN LONDON IN LIGHT OF THE STELLAR PERFORMANCES WE'VE SEEN OVER 1993 THERE IS THE TEMPTATION FOR FUND MANAGERS TO REALIZE SOME OF THE PAPER PROFITS THEY HAVE MADE IN ASIA'S SMALLER STOCK MARKETS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 076 TO 11325 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3176 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1326 ISSUES ROSE AND 852 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 624 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17346 MARKS AND 11225 YEN COMPARED WITH 17273 MARKS AND 11190 YEN FRIDAY 9401110001 940111 WORLD MARKETS TOKYO STOCKS JUMP 18 MARKING FOURTH GAIN IN A ROW HELPED BY HEAVY BUYING FROM ABROAD BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL THE NIKKEI 225STOCK AVERAGE FINISHED 31943 POINTS HIGHER AT 1844344 ALSO REPRESENTING A 58 GAIN FOR THE FIRST WEEK OF TRADING THIS YEAR IN TRADING TUESDAY IN TOKYO THE NIKKEI ROSE 4191 POINTS TO CLOSE THE MORNING SESSION AT 1848535 MONDAY'S VOLUME WAS ESTIMATED AT 470 MILLION SHARES UP FROM 3229 MILLION SHARES IN THE PREVIOUS SESSION AND THE HIGHEST IN A MONTH GAINERS SWAMPED LOSERS 947124 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES JUMPED 2027 POINTS OR 14 TO 150129 ITS FIRST FINISH ABOVE 1500 SINCE LAST NOV 19 IN SOME OTHER ASIANPACIFIC MARKETS MONDAY INVESTORS WENT SHOPPING IN THE WAKE OF LAST WEEK'S SHARP DECLINES IN THE REGION'S BOURSES SHARE PRICES IN HONG KONG SINGAPORE AND KUALA LUMPUR ALL OF WHICH TOOK BIG HITS LAST WEEK CLIMBED 33 25 AND 13 RESPECTIVELY STOCKS ALSO ADVANCED IN SYDNEY AND WELLINGTON WITH NEW ZEALAND SHARES MARKING A FOURYEAR HIGH BUT THE SLIDES CONTINUED IN MANILA WHERE THE MARKET LOST 22 AND IN BANGKOK WHICH SANK 19 SEOUL AND TAIPEI EQUITIES ALSO FINISHED LOWER JAKARTA WAS CLOSED MONDAY FOR A HOLIDAY DESPITE THE GAINS IN SOME PACIFIC RIM EXCHANGES WORRIES ABOUT OVERHEATING REMAINED A POWERFUL SUBTEXT IN KUALA LUMPUR TUN DAIM ZAINUDDIN AN ECONOMIC ADVISER TO THE MALAYSIAN GOVERNMENT AND A FORMER FINANCE MINISTER WHO IS REPUTED TO BE ONE OF THE COUNTRY'S SAVVIEST AND MOST AGGRESSIVE STOCKMARKET PLAYERS SAID THE KUALA LUMPUR EXCHANGE'S YEARLONG ASCENT HAS REACHED A DANGEROUS STAGE AND COULD BE RIPE FOR A CRASH WITHIN THE NEXT COUPLE OF MONTHS IN TOKYO TRADERS SAID A STEADY STREAM OF BUY ORDERS FROM ABROAD PARTICULARLY FROM EUROPE CREATED A TRADING FRENZY BY EARLY AFTERNOON AS JAPANBASED DEALERS RUSHED TO GET A PIECE OF THE ACTION THEY SAID INVESTORS SEEMED TO BE ADDING TO ASSETS ALLOCATED TO JAPAN AFTER SEVERAL MONTHS OF BEING UNDEREXPOSED TO THE TOKYO MARKET WHICH STILL IS TRADING MORE THAN 50 BELOW RECORD LEVELS SET IN 1989 THERE STILL ISN'T ANY CLEAR SCENARIO FOR AN ECONOMIC RECOVERY IN JAPAN YUICHI MATSUSHITA A STRATEGIST AT NIKKO SECURITIES CO SAID BUT THERE SEEMS TO BE A VAGUE FEELING AMONG FOREIGN INVESTORS THAT JAPAN'S MARKET IS LAGGING TOO FAR BEHIND THE GAINS MADE IN OTHER ASIAN MARKETS LAST YEAR STOCK PRICES ROSE THROUGH MOST OF THE MORNING AND GAINED FURTHER MOMENTUM IN THE AFTERNOON BUT LARGE DOMESTIC INVESTORS WERE WAITING TO SELL WHEN THE NIKKEI CLEARED 18500 LIMITING THE RALLY MR MATSUSHITA SAID MONDAY'S TRADING ALSO REFLECTED THE JAPANESE YEN'S REBOUND FROM RECENT WEAKNESS AGAINST THE US DOLLAR INTERNATIONAL INVESTORS WERE BUOYED BY THE YEN'S STRENGTH WHICH BOOSTS THE VALUE OF THE YENDENOMINATED SHARES THEY OWN MARKET PARTICIPANTS WERE DIVIDED ABOUT WHETHER THE RALLY CAN SUSTAIN ITS MOMENTUM AND PUSH THE NIKKEI ABOVE 18500 YUKIO ANDO MANAGER OF INVESTMENT INFORMATION AT YAMAICHI SECURITIES CO SAID 18500 WILL BE THE RESISTANCE LINE FOR NOW NOTING A LACK OF NEWS TO MOVE THE BROAD MARKET MONDAY HE ALSO SAID CORPORATE AND INSTITUTIONAL INVESTORS WILL BEGIN SELLING SHARES TO BOOK PROFITS AHEAD OF THE MARCH 31 END OF JAPAN'S FISCAL YEAR BUT CHRISTIAN HOWES A SALESMAN AT SMITH NEW COURT NOTED THAT JAPANESE SELLING TENDS TO THIN DURING PERIODS WHEN THE NIKKEI RISES SHARPLY THAT HE SAID COULD ALLOW THE INDEX TO PUSH THROUGH 18500 LATER IN THE WEEK LONDON SHARES DECLINED AFTER SWINGING WITHIN A WIDE RANGE BUT FRANKFURT STOCKS ROSE 1 HALTING LAST WEEK'S CONSOLIDATION AND STOCKHOLM PRICES ROSE TO A THIRD CONSECUTIVE RECORD WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11325 UP 076 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND ASIA/PACIFIC AND A DROP IN EUROPEAN MARKETS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11957 UP 384 OR 33 WITH SEMBAWAN SHIPYARD OF SINGAPORE POSTING A 14 GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 21775 DOWN 387 OR 18 WITH CASINO MUNICIPAL DE CANNES OF FRANCE SLIDING 11 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 54 POINTS TO 34406 THE FT 30STOCK INDEX EASED 25 POINTS TO 26149 VOLUME WAS 8491 MILLION SHARES COMPARED WITH 105 BILLION SHARES IN THE PREVIOUS SESSION THE FT 100 QUICKLY JUMPED 22 POINTS FOLLOWING RALLIES FRIDAY ON WALL STREET AND EARLIER YESTERDAY IN SOME ASIAN ARENAS BUT DIVED BY MIDAFTERNOON TO A 16POINT LOSS DRIVEN DOWN BY FUTURES DEALINGS THE FUTURES MARKET HEADED LOWER BECAUSE OF PESSIMISM ABOUT THE SHORTTERM OUTLOOK FOR A REDUCTION IN BRITAIN'S INTEREST RATES BUT IN THE FINAL HOUR OF TRADING AN EARLY WALL STREET RALLY HELPED IMPROVE LONDON PRICES THOUGH THE STOCK MARKET'S PACE WAS BEING SET BY THE FUTURES PIT SOME DEALERS SAID DEMAND FOR STOCK EXCEEDS SUPPLY WHILE SELLERS ARE SCARCE PROVIDING A FLOOR FOR PRICES IN FRANKFURT THE DAX 30STOCK INDEX WHICH FELL 24 LAST WEEK CLIMBED 2215 POINTS TO 223379 BUYING BY GERMAN MUTUAL FUNDS ALSO STEERED PRICES HIGHER AS PRIVATE INVESTORS CONTINUED TO SWITCH CASH OUT OF LOWERYIELDING FIXEDINCOME INSTRUMENTS DOLLARSENSITIVE SHARES ESPECIALLY IN THE SPECIALTYCHEMICAL SECTOR GAINED ON THE FIRM DOLLAR IN PARIS EQUITIES REBOUNDED FROM SLIGHT LOSSES AND THE MARKET POSTED ITS THIRD 1994 HIGH IN A ROW LED BY MONEYMARKET MUTUAL FUNDS WHICH HAVE LOST SOME TAX ADVANTAGES AND HIGH RATES THAT MADE THEM A PREFERRED SAVINGS VEHICLE IN RECENT YEARS IN STOCKHOLM SHARES RECORDED THEIR THIRD RECORD HIGH IN A ROW AS THE MARKET GOT SUPPORT FROM DECLINING MONEYMARKET RATES AND FAVORABLE ECONOMIC FORECASTS IN THE SWEDISH GOVERNMENT'S BUDGET BILL FOR FISCAL 1995 WHICH PROMISED A RETURN TO GROWTH AND A NARROWER DEFICIT INTERESTRATE SENSITIVE STOCKS GAINED WITH THE BANKING AND INSURANCE SUBINDEX SOARING 46 WHILE REAL ESTATE AND CONSTRUCTION SHARES JUMPED 31 IN MILAN STOCKS ENDED LOWER BUT ONLY AFTER A LATE RECOVERY FROM LOWS ON BLUECHIP BARGAIN HUNTING LED BY INSTITUTIONAL INVESTORS SENTIMENT WAS HURT EARLIER ON WORRIES ABOUT AN ITALIAN PARLIAMENTARY VOTE THIS WEEK ON THE COALITION GOVERNMENT'S FUTURE 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 9401100177 940110 LABOR PAINS HEALTHBENEFIT SCAMS ARE ALLEGED TO TAKE A NEW FORM UNIONS THEIR SPECIAL LEGAL STATUS MAKES THEM ATTRACTIVE AS VEHICLES FOR FRAUD A TRAIL OF UNPAID CLAIMS BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DAVID ENGLISH NEVER SAW A UNION ORGANIZER HANGING AROUND THE TYLER TEXAS OFFICES OF THE TWOWAY RADIO COMPANY WHERE HE WORKED SO HE WAS SURPRISED WHEN HE FOUND TUCKED INSIDE THE FORMS FOR THE COMPANY'S NEW HEALTH PLAN AN APPLICATION TO JOIN THE CONTRACT SERVICES UNION LOCAL 211 LONG OPPOSED TO UNIONS HE BALKED AT JOINING THAT LED TO AN EVEN BIGGER SURPRISE HIS BOSS URGED HIM TO SIGN UP WHAT EMPLOYER IN HIS RIGHT MIND WOULD ASK A UNION TO COME IN AND REPRESENT HIS EMPLOYEES THE REEDY 39YEAROLD OFFICE MANAGER WONDERS BUT LOCAL 211 WASN'T THE KIND OF UNION THAT STRIKES FEAR INTO AN EMPLOYER'S HEART ON THE CONTRARY IT HAD NEVER CALLED A STRIKE OR ENGAGED IN BAREKNUCKLES BARGAINING WHAT IT DID DO WAS OFFER A LOWCOST HEALTHBENEFITS PLAN TO INDIVIDUALS SMALL BUSINESSES AND GOVERNMENT ENTITIES DESPERATE FOR AFFORDABLE COVERAGE INSTEAD OF A SAFE HARBOR HOWEVER LOCAL 211'S PLAN HAS TURNED INTO A WHIRLPOOL OF UNPAID CLAIMS AND PERSONAL UNCERTAINTY IN AUGUST TEXAS INSURANCE REGULATORS FILED A COMPLAINT IN A STATE COURT IN AUSTIN SEEKING TO HALT ITS OPERATIONS IN THE STATE ACCUSING IT OF BEING AT THE CENTER OF AN ELABORATE SCHEME TO MARKET UNAUTHORIZED INSURANCE CALIFORNIA OKLAHOMA AND NEVADA HAVE ALSO TAKEN ACTION AGAINST THE ORGANIZATION LOCAL 211 SAYS THAT IT IS A BONAFIDE UNION TARGETED BY OVERZEALOUS STATE REGULATORS SEEKING INSURANCEPREMIUM TAXES MAYBE THEY THINK THAT THE ONLY WAY YOU CAN PROVE THAT YOU ARE A LEGITIMATE UNION IS TO GO OUT AND BLOW UP HOUSES AND CARS SAYS UNION ATTORNEY JOHN CLARO BUT AUTHORITIES QUESTION THE LEGITIMACY OF LOCAL 211 AND OTHER UNIONS LIKE IT WHICH HAVE SIGNED UP TENS OF THOUSANDS OF WORKERS NATIONWIDE THANKS TO A SERIES OF PARALLEL LEGAL QUIRKS THAT ALLOW UNIONS TO OPERATE SELFFUNDED HEALTH PLANS VIRTUALLY BAR STATES FROM REGULATING THEM AND MAKE LAUNCHING A UNION ALMOST AS EASY AS STARTING A FAN CLUB AMID A CRISIS OVER HEALTHINSURANCE COST AND AVAILABILITY DROVES OF PROMOTERS HAVE POURED THROUGH THE GAP CONFOUNDING STATE INSURANCE REGULATORS WITH TANGLED MULTISTATE ORGANIZATIONAL STRUCTURES AND IN A CRUEL NEW TWIST ON UNION CORRUPTION FREQUENTLY SADDLING THEIR OWN DUESPAYING MEMBERS WITH UNPAID MEDICAL BILLS WHEN THEIR JERRYBUILT SYSTEMS COLLAPSE IN THEORY THE CLINTON HEALTHCARE REFORMS WILL SMOTHER SUCH SCAMS BY MAKING AFFORDABLE INSURANCE UNIVERSAL REQUIRING GOVERNMENT PRECERTIFICATION OF UNION HEALTH PLANS AND MAKING SMALL EMPLOYERS PURCHASE COVERAGE THROUGH STATEREGULATED ALLIANCES BUT THE PROPOSED REFORMS FACE A CONGRESSIONAL BATTLE THAT COULD GRIND ON FOR MANY MONTHS A VERITABLE LIFETIME IN AN ARENA WHERE SUCH OPERATIONS CAN SPRING UP COLLECT MILLIONS OF DOLLARS IN PREMIUMS AND DISAPPEAR IN LESS THAN A YEAR EVEN IF THE CLINTON PROPOSALS SURVIVE INTACT INVESTIGATORS WORRY THAT STATE REGULATORY AGENCIES WILL STILL BE HARDPRESSED TO CATCH UP WITH SUCH OPERATORS AS THEY PITCH LOWCOST COVERAGE AND AN INSURANCELIKE STRUCTURE TO EMPLOYERS AND CONSUMERS SCRAMBLING TO SIGN UP WITH A HEALTHCARE NETWORK MOREOVER THE ENTREPRENEURS BEHIND SUCH OPERATIONS HAVE ALREADY EXHIBITED A REMARKABLE CAPACITY TO ADAPT TO CHANGING SURROUNDINGS WHEN CORNERED BY AUTHORITIES SOME UNIONS HAVE SIMPLY CHANGED NAMES OR SHIFTED OPERATIONS INTO OTHER STATES OR NEW LINES OF BUSINESS FACING GROWING SCRUTINY OVER THEIR HEALTH PLANS A FEW SUCH UNIONS HAVE ALREADY DIVERSIFIED INTO PENSION INVESTMENT FUNDS WORKERS' COMPENSATION PLANS LEGAL BENEFITS PLANS AND OTHER FORMS OF COVERAGE IN THE BEST OF WORLDS YOU WOULD SAY THAT THERE WOULDN'T BE A NEED FOR THEM AFTER THE CLINTON REFORMS SAYS AGENT STEPHEN COSSU OF THE FEDERAL OFFICE OF LABOR RACKETEERING'S NEW YORK OFFICE BUT THESE GUYS ARE NOT GOING TO GO AWAY ATTORNEY JIM FISHER OF THE CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS ADDS THE WHOLE POINT OF THIS IS FOR THEM TO COME IN AND OPERATE UNDER THE RADAR THE EMPLOYEE RETIREMENT INCOME SECURITY ACT ERISA OF 1974 ALLOWS LARGE EMPLOYERS CERTAIN SMALLEMPLOYER GROUPS AND LABOR UNIONS TO OFFER HEALTHBENEFITS PLANS WITHOUT GENERALLY HAVING TO PAY PREMIUM TAXES MAINTAIN MINIMUM RESERVE LEVELS OR MAKE MANY OF THE STATE FILINGS REQUIRED OF TRADITIONAL INSURANCE COMPANIES THE INTENT WAS TO GIVE THESE GROUPS GREATER LATITUDE IN PROVIDING EMPLOYEE BENEFITS WITHOUT FORCING THEM TO COMPLY WITH THE LAWS IN EACH INDIVIDUAL STATE WHERE THEY MIGHT HAVE OPERATIONS ALTHOUGH SUCH PLANS FREE OF STATE OVERSIGHT ARE SUPPOSED TO BE REGULATED BY THE FEDERAL GOVERNMENT IT HAS NEVER PROVIDED EFFECTIVE OVERSIGHT ERISA LET MANY UNIONS AND EMPLOYERS OFFER MORE AFFORDABLE COVERAGE BUT AS HEALTH INSURANCE BECAME MORE EXPENSIVE AND LESS AVAILABLE DURING THE 1980S IT ALSO PROVIDED COVER FOR ENTREPRENEURS WHO AIMING TO EXPLOIT THE REGULATORY EXEMPTION BEGAN OFFERING PLANS THROUGH A VARIETY OF ORGANIZATIONAL FORMS RANGING FROM WOULDBE BENEFITS SOCIETIES AND LABOR UNIONS TO HASTILYKNIT EMPLOYER ASSOCIATIONS AND EMPLOYEELEASING OPERATIONS SOME OF THESE OPERATIONS LIKE THE TEXASBASED MINISTERS BENEFIT TRUST AIMED AT SPECIFIC GROUPS THAT TRUST WAS CLOSED BY TEXAS REGULATORS IN 1981 TWO YEARS LATER ITS FOUNDER OPENED A SIMILAR OPERATION CALLED THE CHRISTIAN ORGANIZATIONS MEDICAL SOCIETY WHOSE EVENTUAL DEMISE LEFT BEHIND MORE THAN 5 MILLION IN UNPAID CLAIMS BY EMPLOYEES OF CHURCHES AND RELIGIOUS ORGANIZATIONS WHILE SOME PROMOTED THEIR CONNECTIONS WITH OFFSHORE INSURERS OF UNCERTAIN OWNERSHIP AND RESOURCES OTHERS SOUGHT LEGITIMACY BY CLAIMING CONNECTIONS WITH WELLKNOWN INSURERS IN 1991 A FEDERAL JUDGE IN PHOENIX ORDERED ONE ARIZONABASED UNION TO STOP CLAIMING THAT ITS BENEFITS PLAN HAD THE BACKING OF COMMONWEALTH LIFE INSURANCE CO IN LOUISVILLE KY WHICH HAD FILED A SUIT SEEKING SUCH ACTION MEANWHILE MANY HEALTHBENEFITS MARKETERS LASHED TOGETHER VAST EMPLOYEELEASING OPERATIONS THAT FOR A FEE HIRED WORKERS WHO HAD BEEN FIRED EN MASSE BY SMALLER CLIENT COMPANIES AND THEN LEASED THEM BACK TO THEIR EMPLOYERS BY POOLING LARGE NUMBERS OF WORKERS THEY PROVIDED HEALTH AND WORKERS' COMPENSATION COVERAGE THAT WAS CHEAPER ALBEIT FREQUENTLY SELFFUNDED AND UNREGULATED THE 1990 COLLAPSE OF ATLANTABASED SYNESIS INC WHICH AT ONE TIME PROVIDED COVERAGE FOR ABOUT 800 COMPANIES IN 23 STATES SADDLED CLIENTS WITH AN ESTIMATED 4 MILLION IN UNPAID CLAIMS STILL SUCH OPERATIONS CONTINUED TO SPRING UP AND UNFETTERED BY ACTUARIAL CONCERNS UNDERSELL THE COMPETITION SO LONG AS THEY CONTINUED TO SIGN UP NEW PREMIUMPAYING MEMBERS MOST PAID OFF SMALL CLAIMS AND MADE A PROFIT FOR THEIR OPERATORS BUT MAJOR MEDICAL BILLS SUCH AS THOSE RESULTING FROM OPENHEART SURGERIES COULD BRING SUCH SCHEMES CRASHING TO THE GROUND ONLY THEN DID MANY COME TO THE ATTENTION OF STATE REGULATORS UNTIL YOU GET COMPLAINTS ABOUT UNPAID CLAIMS THEY DON'T REGISTER YOU DON'T KNOW THEY ARE OUT THERE SAYS EDNA RAMON BUTTS SENIOR ASSOCIATE COMMISSIONER OF THE TEXAS DEPARTMENT OF INSURANCE ONCE WE FIGURE IT OUT THEY MOVE ON TO SOMETHING ELSE THAT IS A LITTLE BIT MORE COMPLICATED AND THE SHIFT TOWARD WOULDBE UNIONS HAS PROVED TO BE ONE OF THE MOST TROUBLESOME MOVES AS WELL AS AN INDICATION OF THE HURDLES FACED IN ROOTING THEM OUT STARTING A UNION IS SURPRISINGLY EASY FEDERAL STATUTES FAIRLY STRICT ON ORGANIZING AND BARGAINING REQUIRE ONLY THE FILING OF A FEW FORMS IN THE FACE OF STATE REGULATORY INVESTIGATIONS SOME SUCH UNIONS HAVE SIMPLY FOUNDED NEW LABOR ORGANIZATIONS IN OTHER STATES AND TRANSFERRED THEIR MEMBERSHIPS ALL THAT IS NECESSARY TO BE A LABOR UNION IS TO CALL YOURSELF ONE SAYS SHERWIN KAPLAN A LABOR DEPARTMENT ATTORNEY INVOLVED IN INVESTIGATING THESE OPERATIONS MEANWHILE THE USE OF THE UNION STRUCTURE CREATES AN ADDITIONAL RING OF LEGAL DEFENSES FOR PROMOTERS INSTEAD OF MERELY INVESTIGATING HEALTHBENEFITS PLANS STATE REGULATORS BECOME EMBROILED IN LONG JURISDICTIONAL BATTLES BETWEEN STATE COURTS THAT GENERALLY DEAL WITH INSURANCE ISSUES AND FEDERAL COURTS INVOLVED WITH LABOR ISSUES MOREOVER THEY MUST ALSO UNTANGLE HEALTHBENEFITS ARRANGEMENTS FROM COMPLEX COLLECTIVEBARGAINING ARRANGEMENTS THAT DEFY TRADITIONAL FORMS LOCAL 211 FOR INSTANCE SPRANG FROM THE FARFLUNG EMPLOYEELEASING OPERATION FOUNDED BY OKLAHOMA CITY BUSINESSMAN GARY NEWSOM WHO DIDN'T RETURN CALLS SEEKING COMMENT HIS COMPANY ALLIANCE TEMPORARY SERVICES INC WAS SERVICING 13000 EMPLOYEES AND AFFORDING HIM A 10000SQUAREFOOT MANSION AND A FLEET OF LUXURY CARS BEFORE OKLAHOMA AUTHORITIES FROZE ITS ASSETS IN 1990 IN A LAWSUIT FILED IN AN OKLAHOMA STATE COURT THE OFFICES OF THAT STATE'S ATTORNEY GENERAL INSURANCE COMMISSIONER AND LABOR COMMISSIONER ALLEGED THAT ALLIANCE OBTAINED WORKERS' COMPENSATION COVERAGE FROM UNREGISTERED OFFSHORE INSURERS IN A TEXAS STATECOURT LAWSUIT THE TEXAS WORKERS' COMPENSATION ASSIGNED RISK POOL CLAIMED ALLIANCE HAD FRAUDULENTLY UNDERCOUNTED AND MISREPRESENTED WORKERS TO OBTAIN STATESPONSORED COVERAGE AND AN AUSTIN GRAND JURY INDICTED MR NEWSOM AND HIS BUSINESS PARTNER ACCOUNTANT JEROME WOLF ON FELONY FRAUD CHARGES RELATED TO THE LEASING OPERATION BOTH WERE CONVICTED AND SENTENCED TO PRISON TERMS IN A TEXAS STATE COURT IN SEPTEMBER AND ARE FREE ON BAIL PENDING APPEALS ALLIANCE'S SUBSEQUENT FILING FOR BANKRUPTCYLAW PROTECTION EFFECTIVELY PULLED THE PLUG ON HEALTH AND DISABILITY COVERAGE FOR HUNDREDS OF INJURED WORKERS BUT MR NEWSOM AND HIS PARTNERS SOON REVVED UP A PACK OF NEW EMPLOYEELEASING COMPANIES OBTAINING THEIR INSURANCE FROM A PHOENIX LABOR ORGANIZATION THAT EVENTUALLY BECAME KNOWN AS LOCAL UNION 615 IN 1992 A FEDERAL JUDGE IN PHOENIX BARRED LOCAL 615 FROM SIGNING UP NEW MEMBERS AND PUT ITS AFFAIRS IN THE HANDS OF A COURTAPPOINTED FIDUCIARY WHO FOUND ABOUT 30000 IN ITS HEALTHBENEFITS FUND TO COVER AN ESTIMATED 4 MILLION IN OUTSTANDING CLAIMS THE DEMISE OF LOCAL 615 PROMPTED AN UNUSUAL LABORRELATIONS MOVE BY THE NEWSOM ORGANIZATION IT STARTED LOOKING FOR ANOTHER UNION FOR ITS EMPLOYEES THE QUEST LED TO THE MELVILLE NY OFFICES OF ATTORNEYS ALLEN BREZLOW AND NEIL FRANK IN LATE 1991 THEY HAD INCORPORATED THE FINANCIAL CONSULTANTS GUILD WHICH DESCRIBED ITSELF AS A UNION FOR THE TWENTYFIRST CENTURY IT WAS NOT MR FRANK'S FIRST EXPERIENCE WITH SUCH UNIONS WHOSE HEALTHBENEFITS PLANS ARE FREQUENTLY MARKETED THROUGH INDEPENDENT INSURANCE AGENTS SELLING A VARIETY OF PLANS ONE MONTH BEFORE THE GUILD'S FOUNDING MR FRANK WROTE TO A DALLAS INSURANCEAGENCY OWNER AND IDENTIFIED HIMSELF AS PRESIDENT OF AN EMPLOYER ASSOCIATION THAT HAD AN EXCLUSIVE RELATIONSHIP WITH A NEW YORK UNION CALLED THE INTERNATIONAL EMPLOYEES BENEFIT ASSOCIATION IEBA MR FRANK WROTE THAT THE AGENCY'S CLIENT COMPANIES NEEDN'T WORRY ABOUT THEIR EMPLOYEES HAVING TO BECOME UNION MEMBERS TO ENROLL IN THE IEBA'S HEALTH PLAN THE IEBA'S COLLECTIVEBARGAINING AGREEMENT HE WROTE COULD BE REVISED TO FIT THEIR NEEDS CONTAINED NO ARBITRATION CLAUSE AND WAS UNENFORCEABLE HE ADDED THAT THE UNION HAD ONLY ONE EMPLOYEE WHO HAD NEVER BEEN ON A PLANE OR HANDLED A GRIEVANCE THAT'S A DIFFERENT UNION A DIFFERENT SITUATION MR FRANK SAYS IN AN INTERVIEW ADDING HOWEVER THAT WHEN IT COMES TO UNIONS FIGHTING WITH THE COMPANY IS NOT THE WAVE OF THE FUTURE INDEED MR FRANK REPRESENTED THE UNION WHEN THE GUILD'S OKLAHOMA CITY AFFILIATE LOCAL 211 WAS CREATED IN EARLY 1992 HE ALSO FILED THE PAPERS INCORPORATING THE EMPLOYERS' BARGAINING ASSOCIATION THEN HEADED BY MR NEWSOM AND THE NEW LOCAL'S COLLECTIVEBARGAINING AGREEMENT WASN'T EXACTLY A MODEL OF LABOR TOUGHNESS WORKERS COULD BE DISCHARGED WITHOUT NOTICE AND EMPLOYERS ONLY AGREED TO ABIDE BY FEDERAL WORKERSAFETY LAWS LOCAL FIRE CODES AND STATE OR FEDERAL MINIMUM WAGE LAWS WHERE APPLICABLE LOCAL 211'S INITIAL MEMBERS WERE ABOUT 700 WORKERS EMPLOYED BY MR NEWSOM'S LEASING COMPANIES RAY SHAW A ROOFING CONTRACTOR IN MANOR TEXAS RECALLS THAT WHEN THE EMPLOYEELEASING COMPANY HE USED BECAME PART OF THE NEWSOM ORGANIZATION HE WAS ADVISED THAT HIS EIGHT EMPLOYEES WOULD HAVE TO JOIN LOCAL 211 TO GET HEALTH COVERAGE BUT HE SAYS WE WERE TOLD THAT NOBODY WOULD COME AROUND THERE WOULD BE NO STEWARDS THERE WOULD BE NO MEETINGS LOCAL 211 SAYS ITS REPRESENTATIVES DID MEET WITH MR SHAW'S WORKERS BUT THE ROOFER DOESN'T RECALL THEIR VISITS HE SAYS HE SEVERED ALL TIES WITH THE CONTRACT SERVICES NETWORK AFTER EMPLOYEES HAD TROUBLE GETTING THEIR MEDICAL BILLS PAID MEANWHILE WITH LOWCOST HEALTH COVERAGE AS THE PRIMARY ATTRACTION LOCAL 211 AND ITS AFFILIATED EMPLOYER GROUP SOON BEGAN TRYING TO ENROLL NEW MEMBERS IN THE SPRING OF 1992 MR FRANK CAME TO DALLAS TO TALK TO AREA SALESMEN ABOUT PITCHING THE PLAN TO INDIVIDUAL TEXAS EMPLOYERS TO WALT CHILDERS WHO HAD BEEN SELLING EXTENDED NEW CAR WARRANTIES IT SEEMED LIKE AN OPPORTUNITY TO GET IN ON THE GROUND FLOOR OF SOMETHING BIG LARRY CLENDENNEN AN ENERGETIC EXEVANGELIST WHO WAS SELLING PREPAID FUNERAL PLANS AT THE TIME SAYS WE WERE JUST SALESMEN LOOKING FOR A PORT TOGETHER THEY FORMED CONTRACT SERVICES NETWORK MARKETING WHICH RENTED A CRAMPED OFFICE IN GRAND PRAIRIE A BLUECOLLAR DALLAS SUBURB WITHOUT A SECRETARY OR FURNITURE THEY BEGAN COLDCALLING LOCAL EMPLOYERS ABOUT JOINING THE CONTRACT SERVICES EMPLOYERS NETWORK AND HAVING THEIR EMPLOYEES SIGN UP FOR THE UNION THEY STRUCK GOLD AFTER HEARING ABOUT A NEWLY ENACTED LAW REQUIRING TEXAS SCHOOL DISTRICTS TO OFFER THEIR EMPLOYEES HEALTH INSURANCE WITH THE COST OF SUCH COVERAGE SOARING SOME SMALL DISTRICTS COULDN'T EVEN GET A CONVENTIONAL INSURER TO BID ON THEIR BUSINESS WE WERE JUST GROWN MEN SITTING AROUND ON LAWN CHAIRS MAKING PHONE CALLS SAYS MR CLENDENNEN MAN WE JUST SMILED AND DIALED HEALTHPLAN MEMBERS PAID ABOUT 130 MONTHLY FOR INDIVIDUAL HEALTH BENEFITS ALONG WITH 15 MONTHLY DUES TO LOCAL 211 3 OF WHICH WENT TO THE GUILD INVESTIGATORS SAY THAT LOCAL 211 HAD REINSURANCE FOR BIG CLAIMS BUT WAS LARGELY SELFINSURED ALTHOUGH LOCAL 211 REPRESENTATIVES HAVE TESTIFIED THAT IT PAID MORE THAN 18 MILLION IN CLAIMS INVESTIGATORS AREN'T CERTAIN HOW MUCH MONEY IT TOOK IN EVENTUALLY 17 DESPERATE DISTRICTS SIGNED UP DESPITE A TEXAS LAW PROHIBITING TEACHERS FROM ENGAGING IN COLLECTIVE BARGAINING THE PREMIUMS WERE JUST UNGODLY SAYS MARK WEISNER SUPERINTENDENT OF THE 435STUDENT BLUE RIDGE SCHOOL DISTRICT AN HOUR NORTH OF DALLAS WITH STARTING TEACHERS THERE EARNING 17400 A YEAR MONTHLY HEALTHINSURANCE PREMIUMS WERE RUNNING 600 AND MORE FOR A FAMILY WHEN THE CONTRACT SERVICES MARKETERS CALLED OFFERING FAMILY COVERAGE FOR 300 IT LOOKED GREAT HE SAYS IN MANY DISTRICTS THE PROBLEMS BEGAN ALMOST IMMEDIATELY SOME EMPLOYEES NEVER GOT BENEFITS BOOKLETS AND OTHERS NEVER KNEW WHEN THEIR PRESCRIPTIONDRUG CARDS WOULD WORK AT THE LOCAL PHARMACY MEANWHILE ALTHOUGH SMALL CLAIMS WERE HANDLED QUICKLY AT FIRST MANY LARGER ONES WEREN'T PAID FOR MONTHS IF AT ALL WHEN THEY RESPONDED TO COMPLAINTS PLAN ADMINISTRATORS FREQUENTLY SAID THEY HAD NEVER RECEIVED A CLAIM YOU CALLED THEM AND YOU COULD NOT GET AN ANSWER SAYS SUSAN BUCHANAN CITY SECRETARY IN TINY TRINIDAD TEXAS WHOSE EMPLOYEES ALSO JOINED THE UNION UNABLE TO GET PLAN OFFICIALS TO RESPOND TO TELEPHONE COMPLAINTS FROM BLUE RIDGE STAFFERS MR WEISNER GATHERED UP A THICK STACK OF UNPAID CLAIMS AND MEDICAL RECORDS DROVE 75 MILES TO GRAND PRAIRIE AND HANDDELIVERED THEM TO MR CLENDENNEN THE SALESMAN SAYS HE MAILED THE RECORDS OVERNIGHT TO CONTRACT SERVICES NETWORK THE EMPLOYERS' ASSOCIATION IN OKLAHOMA CITY BUT WAS LATER TOLD THEY HAD BEEN LOST SWAMPED WITH CALLS FROM AIDS PATIENTS WITH UNPAID DOCTOR BILLS AND CANCER VICTIMS WHO COULDN'T AFFORD CHEMOTHERAPY MESSRS CHILDERS AND CLENDENNEN BROKE WITH THE NEWSOM ORGANIZATION EARLY LAST AUGUST AND BEGAN STEERING THEIR CUSTOMERS TOWARD A PLAN BEING OFFERED BY THE NEWLY CHARTERED SELFRELIANT NETWORK GUILD LOCAL 557 A MISSOURI DIVISION OF THE FINANCIAL CONSULTANTS GUILD BUT ON AUG 17 THE TEXAS ATTORNEY GENERAL'S OFFICE STEPPED IN AND OBTAINED A RESTRAINING ORDER EFFECTIVELY FREEZING THE BANK ACCOUNTS OF LOCAL 211 AND LOCAL 557 AS WELL AS THE GUILD ALTHOUGH THAT RESTRAINING ORDER HAS SINCE BEEN LIFTED A RELATED LAWSUIT FILED IN A STATE COURT IN AUSTIN IS PENDING ALTHOUGH IT IS NAMED AS A CODEFENDANT THE FINANCIAL CONSULTANTS GUILD WHICH NOW HAS 8000 MEMBERS AND LOCALS IN SIX STATES HAS SEVERED ITS TIES WITH LOCAL 211 IT CONTENDS THAT EXCEPT FOR COLLECTING A PORTION OF THE LOCAL'S DUES IT HAS NO CONNECTION WITH THE CASE AND HAS DONE NOTHING ILLEGAL THE SHAME OF IT IS THAT SOMETHING LIKE THE LITIGATION IN TEXAS GIVES A BAD NAME TO SOMETHING THAT IS PROVIDING A VERY SUBSTANTIAL BENEFIT TO THE EMPLOYEES WHO ARE COVERED SAYS MR FRANK THE ATTORNEY WHO MAINTAINS THAT THE GUILD'S HEALTHBENEFITS PLAN IS GOING TO DO GREAT UNDER THE CLINTON REFORMS NICK VON KREISLER AN AUSTIN ATTORNEY REPRESENTING MR NEWSOM AND THE CONTRACT SERVICES EMPLOYERS SAYS THERE IS MORE THAN ENOUGH MONEY TO PAY LEGITIMATE OUTSTANDING MEDICAL CLAIMS TO ME THIS IS TOTALLY ABUSIVE BEHAVIOR HE SAYS NOT TO SOME OF THE UNION'S OLD MEMBERS WHO HAVE BEEN UNABLE TO FIND A NEW HEALTH POLICY BECAUSE OF MEDICAL CONDITIONS THAT CROPPED UP WHILE THEY WERE UNDER THE LOCAL 211 HEALTH PLAN THE BLUE RIDGE SCHOOL DISTRICT DID LAND A NEW POLICY ALTHOUGH TO DO SO IT HAD TO EXCLUDE THE FAMILY OF KERRIE AND STEVE BOHANON ON DEC 17 1992 MR BOHANON A 34YEAROLD CARPENTER WAS HOSPITALIZED WITH CHEST PAINS COVERED BY HIS WIFE'S BLUE RIDGE HEALTH PLAN HE UNDERWENT OPEN HEART SURGERY AND RAN UP A 65000 HOSPITAL BILL BUT THAT WAS JUST THE BEGINNING OF THE FAMILY'S PROBLEMS MR BOHANON WAS DIAGNOSED WITH A HEREDITARY AND POTENTIALLY FATAL HEART DISEASE TWO OF THE COUPLE'S FOUR YOUNG CHILDREN WERE SIMILARLY AFFLICTED IT TURNED OUT A FEW MONTHS LATER TEACHER KERRIE BOHANON LEARNED THAT SHE HAD MULTIPLE SCLEROSIS LOCAL HOSPITALS DOCTOR'S OFFICES AND COLLECTION AGENCIES BEGAN CALLING ABOUT MEDICAL BILLS THAT THE CONTRACT SERVICES PLAN WAS PAYING INFREQUENTLY PARTIALLY OR NOT AT ALL EXCEPT FOR MONTHLY STATEMENTS FROM MEDICAL PROVIDERS THE BOHANONS SAY THEY NEVER GOT ANY EXPLANATION OF BENEFITS FROM THE UNIONSPONSORED HEALTH PLAN MEANWHILE THE OFFICES OF THE PLAN'S CLAIMS ADMINISTRATOR MOVED FROM NEW YORK TO TEXAS AND ULTIMATELY TO MISSOURI WITH MR BOHANON UNABLE TO WORK THE FAMILY SOLD ITS BLUE RIDGE HOME AND MOVED NORTH TO A SMALL OKLAHOMA TOWN CLOSER TO A NATIVE AMERICAN TRIBAL HOSPITAL BECAUSE MR BOHANON IS A CHOCTAW HE AND HIS CHILDREN CAN GET FREE TREATMENT THERE ALTHOUGH MRS BOHANON CANNOT LARRY CLENDENNEN CALLED AND SAID HE WAS SORRY SHE SAYS SITTING IN THE TINY LIVING ROOM OF THEIR ROACHINFESTED RENTAL HOUSE I'M TWICE AS SORRY THAT WE EVER HEARD OF THEM BUT THE BOHANONS MAY NOT HAVE SEEN THE LAST OF THE LIKES OF LOCAL 211 EVEN AS THEY SEEK CARE AT THE NEAREST INDIAN HOSPITAL ABOUT 80 MILES AWAY OKLAHOMA AUTHORITIES ARE INVESTIGATING REPORTS THAT SOME PROMOTERS HAVE MOVED OUT OF THE UNION BUSINESS AND HAVE QUIETLY BEGUN SETTING UP INSURANCE OPERATIONS CHARTERED BY SOVEREIGN INDIAN NATIONS 9401100176 940110 BUSINESS BRIEF CONSECO INC FORMS NEW BUYOUT FUND TO SEEK INSURERS AMID CONSOLIDATION CARMEL IND CONSECO INC DRAWING ON STRONG INVESTOR INTEREST FORMED A SUBSTANTIALLY BIGGER SUCCESSOR TO ITS EARLIER AND HIGHLY PROFITABLE INSURANCEINDUSTRY BUYOUT FUND THE RAPIDLY GROWING INSURANCE HOLDING CONCERN SAID IT EXPECTS CONSECO CAPITAL PARTNERS II LP TO HAVE TOTAL FUNDING OF ABOUT 615 MILLION IT SAID IT WAS EXTREMELY PLEASED TO HAVE EXCEEDED THE 500 MILLION ORIGINALLY ENVISIONED FOR THE PARTNERSHIP WHEN IT BEGAN SEEKING FUNDING IN MAY THROUGH LEVERAGING THE NEW FUND'S ACTUAL PURCHASING POWER IS LIKELY TO EXCEED 5 BILLION MAKING IT A FORCE TO BE RECKONED WITH AS THE INDUSTRY'S CONSOLIDATION CONTINUES A CONSECO OFFICIAL CONFIRMED THAT THE ORIGINAL FUND MADE ACQUISITIONS TOTALING ABOUT 1 BILLION WITH JUST ONETENTH THAT AMOUNT OF INITIAL FUNDING THE EARLIER 100 MILLION FUND IN WHICH GE CAPITAL CORP WAS A BIG STAKEHOLDER WAS WOUND UP EARLY IN 1993 AT THE TIME OF THE DISTRIBUTION INVESTORS RECEIVED A 125 TOTAL RETURN ON THEIR INITIAL 1990 INVESTMENT AS BEFORE CONSECO INC WILL SERVE AS GENERAL PARTNER OF THE NEW PARTNERSHIP WHICH IT SAID WILL FOCUS ON ACQUIRING LARGER COMPANIES WITH VALUES RANGING FROM 350 MILLION TO 15 BILLION BY TARGETING COMPANIES OF THAT SIZE THEY'LL OBVIOUSLY BE FISHING IN WATERS WHERE FEW FISHERMEN CAN GO SAID DEAN WITTER ANALYST MICHAEL A LEWIS THE PARTNERSHIP CONSECO SAID WILL SEEK TO CLOSE SIX TO EIGHT TRANSACTIONS WITHIN THREE TO FOUR YEARS CONCENTRATING ON SPECIALIZED ANNUITY LIFE AND ACCIDENT AND HEALTH INSURANCE COMPANIES STEPHEN C HILBERT CONSECO'S CHAIRMAN SAID THE INDUSTRY IS UNDERGOING A DRAMATIC STRUCTURAL TRANSITION CAPITAL CONSTRAINTS ASSET QUALITY PROBLEMS AND THE NEED FOR ECONOMIES OF SCALE ARE INCREASING THE PRESSURE FOR INDUSTRY CONSOLIDATION CONSECO SAID 25 INVESTORS HAVE ALREADY COMMITTED A TOTAL OF 450 MILLION IN CONSECO CAPITAL PARTNERS II LP THE COMPANY ANTICIPATES 165 MILLION IN ADDITIONAL COMMITMENTS BY JAN 31 WHEN THE PARTNERSHIP WILL BE CLOSED MERRILL LYNCH & CO ACTED AS ADVISER AND PLACEMENT AGENT FOR THE PARTNERSHIP 9401100175 940110 TECHNOLOGY ADVANCED MICRO POSTS 40 DROP IN 4THQUARTER NET BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL SUNNYVALE CALIF ADVANCED MICRO DEVICES INC HURT BY ERODING MARGINS ON ITS OUTMODED 386 CHIPS AND HIGHER COSTS FROM ITS LEGAL BATTLE WITH INTEL CORP REPORTED A 40 DROP IN FOURTHQUARTER NET INCOME DESPITE HIGHER SALES THE CLONECHIP MAKER'S NET FOR THE QUARTER ENDED DEC 26 WAS 416 MILLION OR 41 CENTS A SHARE ON SALES OF 4134 MILLION UP 32 FROM 4002 MILLION IN THE YEARAGO PERIOD NET WAS 696 MILLION OR 73 CENTS A SHARE IN THE YEARAGO PERIOD FOR THE YEAR NET WAS 2288 MILLION OR 230 A SHARE DOWN 66 FROM THE YEAREARLIER NET OF 245 MILLION OR 257 A SHARE SALES WERE 16 BILLION UP 9 FROM 15 BILLION IN 1992 ALTHOUGH THE QUARTERLY RESULTS FELL SHORT OF ANALYSTS' EXPECTATIONS SHARES OF ADVANCED MICRO EDGED UP IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE TO 18375 THE CHIP MAKER'S LEGAL COSTS FOR THE FOURTH QUARTER SPIRALED AS IT PREPARES TO DEFEND ITSELF IN A RETRIAL OF A PATENT INFRINGEMENT LAWSUIT FILED BY INTEL THE SUIT ALLEGES THAT ADVANCED MICRO ILLEGALLY COPIED INTEL CHIPS COSTS FOR THE INTELRELATED LITIGATION WERE 9 MILLION HIGHER IN THE FOURTH QUARTER THAN THEY WERE IN THE THIRD QUARTER ANALYSTS SAID CHAIRMAN WJ JERRY SANDERS TOLD THEM IN A CONFERENCE CALL FRIDAY A COMPANY SPOKESMAN SAID HE COULDN'T CONFIRM THAT NUMBER IN A SIGN THAT ADVANCED MICRO IS PREPARING FOR THE WORST MR SANDERS TOLD ANALYSTS THAT IF IT LOSES THE RETRIAL IT WOULD NOT BE ALLOWED TO SHIP CHIPS THAT USE A CERTAIN INTEL CODE STARTING IN THE SECOND QUARTER THAT'S THE FIRST TIME I HEARD HIM TALK ABOUT LOSING SAID MONTGOMERY SECURITIES ANALYST TOM THORNHILL MARKETING GENERAL AND ADMINISTRATIVE COSTS FOR THE QUARTER CLIMBED 20 TO 831 MILLION FROM 695 MILLION FOR THE YEAREARLIER QUARTER ABOUT 4 MILLION OF THE INCREASE IS RELATED TO THE INTEL LITIGATION MARGINS ON ADVANCED MICRO'S 386 CHIPS HAVE SUNK SINCE LAST YEAR WITH FOURTHQUARTER PRICES AVERAGING 22 EACH DOWN FROM 40 A YEAR EARLIER UNIT SALES ALSO PLUNGED AS MORE CONSUMERS TURNED TO THE FASTER 486 CHIP THE CURRENT INDUSTRY STANDARD 9401100174 940110 GM SEES NEW CUTS IN SALARIED RANKS BUT MORE ENGINEERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WILL REDUCE ITS NORTH AMERICAN SALARIED RANKS FURTHER THIS YEAR EVEN AS IT ADDS SOME 2000 ENGINEERS TO HANDLE AN INCREASED NUMBER OF NEWPRODUCT PROGRAMS GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR SAID LAST NIGHT MR SMITH SPEAKING WITH REPORTERS AFTER ADDRESSING AN AUTOINDUSTRY CONFERENCE ALSO INDICATED AS HE HAS PREVIOUSLY THAT GM WILL EARN A PROFIT FOR 1993 GM'S NORTH AMERICAN SALARIED WORK FORCE WAS ABOUT 71000 PEOPLE AT THE END OF 1993 MR SMITH SAID WE'RE AIMING AT THE HIGH 60000S HE SAID MR SMITH SAID THAT NET REDUCTION WILL COME EVEN THOUGH GM WILL ADD ENGINEERS IN AN AGGRESSIVE NEW HIRING PROGRAM WE'RE DRIVING DOWN ADMINISTRATIVE SUPPORT STAFF HE SAID MR SMITH DECLINED TO BE AS SPECIFIC IN SETTING A TARGET FOR GM'S DOMESTIC HOURLY WORK FORCE NOW ABOUT 250000 PEOPLE BUT HE INDICATED THAT NEW EARLYRETIREMENT DEALS FOR HOURLY WORKERS ARE UNDER CONSIDERATION THE UNITED AUTO WORKERS UNION IS FIGHTING TO SLOW THE DECLINE OF ITS GM MEMBERSHIP LATE LAST WEEK A UAW LOCAL IN SHREVEPORT LA THREATENED TO STRIKE A KEY TRUCKASSEMBLY PLANT THERE AS EARLY AS TOMORROW APPARENTLY IN PROTEST OF GM'S EFFORTS TO REDUCE THE WORK FORCE EVEN AS IT INCREASES PRODUCTION MR SMITH SAID HE'S CONCERNED ABOUT THE SHREVEPORT SITUATION BUT DECLINED TO COMMENT SPECIFICALLY IN OTHER REMARKS MR SMITH SAID GM PLANS TO REDUCE SALES OF VEHICLES TO DAILY RENTAL FLEETS TO 450000 VEHICLES THIS YEAR FROM 550000 VEHICLES LAST YEAR AND 800000 IN 1991 HE SEES NO REASON FOR JAPAN TO CONTINUE VOLUNTARY EXPORT RESTRAINTS AND SAID INSTEAD THAT THE US GOVERNMENT'S EFFORTS TO TALK DOWN THE VALUE OF THE DOLLAR AGAINST THE YEN ARE A BETTER APPROACH TO MANAGING AUTOMOTIVE TRADE I DON'T THINK THE PLAYING FIELD IS LEVEL MR SMITH SAID BUT RESTRICTING JAPANESE EXPORTS DIDN'T HELP THIS INDUSTRY OVER TIME HE ALSO SAID IN RESPONSE TO A QUESTION THAT HE NOW WEARS HIS WRISTWATCH ON HIS LEFT ARM ADDING ABOUT MARCH I'LL EXPLAIN THAT LAST YEAR HE WORE IT ON HIS RIGHT WRIST AS A SYMBOL OF CHANGE AND OF HIS RESOLVE TO MAKE GM PROFITABLE AGAIN HE SPOKE AT A CONFERENCE SPONSORED BY THE TRADE PUBLICATION AUTOMOTIVE NEWS 9401100173 940110 INTERNATIONAL AMID SIGNS OF SPREADING VIOLENCE MEXICO ASKS WHEN WILL IT END CHIAPAS REVEALS PROBLEMS THAT MAY DRAW MONEY FROM MODERNIZING PLANS BY DIANNE SOLIS AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL OCOSINGO MEXICO AS THE MILITARY CLEARED THE LAST CORPSES FROM A BLOODY MARKETPLACE IN THE MAYAN HIGHLANDS HERE THE WEIGHT OF LAST WEEK'S INDIAN UPRISING BORE DOWN ON 19YEAROLD NELY CABALLERO THERE WERE MANY HERE WHO SYMPATHIZED WITH THE GUERRILLAS SHE SAYS IN A TEARFUL OUTBURST I DON'T THINK THIS IS GOING TO END ONE QUESTION WHEN WILL IT END IS BEING ASKED THROUGHOUT MEXICO A NATION THAT COMBINES CRUSHING POVERTY WITH JETSET OPULENCE AND PRELIMINARY SIGNS ARE THAT SPORADIC ACTS OF VIOLENCE ARE SPREADING TO OTHER PARTS OF THE COUNTRY AS A RESULT SOME INVESTORS HAVE BEGUN TO WORRY THAT THE GOVERNMENT MAY NEED TO SLOW SOME OF ITS ECONOMIC PROGRESS IN ORDER TO DIVERT MONEY TO POOR AREAS OF MEXICO AND TO TRY TO ADDRESS THE PROBLEMS THAT SPARKED THE REBELLION SINCE FRIDAY REBEL LEADERS OF THE GROUP CALLING ITSELF THE EMILIANO ZAPATA NATIONAL LIBERATION ARMY OR EZLN HAVE MANAGED TO HEIGHTEN FEAR AROUND THE COUNTRY THEY CLAIMED CREDIT FOR TOPPLING ELECTRICAL PYLONS IN THE CENTRAL STATES OF PUEBLA AND MICHOACAN TRYING TO SHOW THEY AREN'T JUST OPERATING IN THE SOUTHERN STATE OF CHIAPAS SIGNS LEFT BY THE TOWERS READ MISSION ACCOMPLISHED ON TO MEXICO CITY OVER THE WEEKEND THREE CAR BOMBS EXPLODED IN MEXICO CITY PEOPLE RUSHING INTO THE STREET WERE GREETED BY SIGNS READING WE'VE ARRIVED EZLN INCREASING THE FEAR IS THE FACT THAT REBELS STOLE NEARLY 3000 POUNDS OF DYNAMITE FROM THE STATEOWNED OIL MONOPOLY PETROLEOS MEXICANOS OR PEMEX IN CHIAPAS THAT DYNAMITE IS SUSPECTED IN SOME OF THE BOMBINGS A GOVERNMENT OFFICIAL SAID THIS IS THE KIND OF SCENARIO YOU SEE IN A MOVIE SAYS MANUEL DE JESUS CASTANEDA AQUILAR HERE IN OCOSINGO A TOWN OF 12000 IN CHIAPAS AND NOW WE ARE LIVING IT IT'S UNLIKELY THAT VIOLENCE WILL SPREAD ON ANYTHING LIKE THE SCALE GOING ON IN CHIAPAS WHERE A FULLSCALE REBELLION CONVULSED MEXICO'S IMPOVERISHED SOUTHERN BORDER ON NEW YEAR'S DAY JUST AS MEXICO OPENED UP ITS NORTHERN BORDER TO FREE TRADE WITH THE US AND CANADA CHIAPAS SEEMS TO BE A SPECIAL CASE NOT ONLY BECAUSE OF THE EXTREME POVERTY BUT ALSO BECAUSE REBELS THERE COULD STAY HIDDEN IN THE DENSE RAIN FOREST WHILE THEY TRAINED FOR TWO YEARS THERE HAS BEEN SOME SPECULATION THAT THE GUERRILLAS MAY ALSO HAVE BEEN ABLE TO TAKE ADVANTAGE OF THE EXPERIENCE OF REBEL GROUPS THAT ARE STILL ACTIVE ACROSS THE BORDER IN GUATEMALA WHAT'S MOST LIKELY IS THAT WE'LL SEE SOME HIGHPROFILE SPLASHY HITANDRUN ACTIONS BY GUERRILLAS SAYS M DELAL BAER A SENIOR FELLOW AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON STILL ELECTION YEARS TEND TO BE TENSE IN MEXICO AND SOME MEXICAN COLUMNISTS HAVE BEEN ASKING IF THINGS ARE THIS BAD IN JANUARY HOW BAD WILL THE VIOLENCE BE BY AUGUST WHEN THE PRESIDENTIAL ELECTIONS TAKE PLACE THE HISTORY OF ARMED CLASHES OVER LAND THAT HAS PLAGUED CHIAPAS ALSO EXISTS IN SEVERAL OTHER STATES INCLUDING A COUPLE THAT ARE CLOSE TO MEXICO CITY AT THE HEART OF THE COUNTRY AND ARMS ARE PLENTIFUL THROUGHOUT THE COUNTRY WITH PEOPLE CARRYING EVERYTHING FROM 1918 REVOLUTIONERA RIFLES TO MODERN GUNS PRESIDENT CARLOS SALINAS HAS INDICATED HE'LL ATTACK THE CHIAPAS PROBLEM WITH MORE MONEY FROM HIS ANTIPOVERTY PROGRAM SOLIDARITY BUT TO MANY HERE HE HAS APPEARED INSENSITIVE LAST WEEK HE DENIED THAT THE REBELLION WAS AN INDIAN UPRISING CAUSED BY ABJECT POVERTY BLAMING THE REVOLT ON THE WORK OF OUTSIDE FORCES FROM CENTRAL AMERICA BISHOP SAMUEL RUIZ A LIBERATION THEOLOGIST WIDELY FOLLOWED BY THE INDIANS IN CHIAPAS INDICATES THAT THE GOVERNMENT APPROACH IS TOO SUPERFICIAL BISHOP RUIZ SAYS THAT THE ANSWER CAN'T BE MONEY MONEY ISN'T THE SAME AS JUSTICE THERE HAS TO BE A DEEP REFLECTION ON THE REAL CAUSES OF THIS MOVEMENT DESCENDANTS OF THE MAYANS ARE NOW DIRTPOOR WITH HIGH ILLITERACY RATES AND LIE AT THE BOTTOM OF AN UGLY CASTE SYSTEM IN WHICH ASCENDANCE DEPENDS ON THE PERCENTAGE OF EUROPEAN BLOOD ASSUMING THE VIOLENCE WILL CONTINUE MANY INVESTORS WORRY THAT SPENDING ON SOCIAL PROBLEMS COULD SIPHON MONEY AWAY FROM MUCHNEEDED MODERNIZATION PROBLEMS THE MONEY COULD HELP THE ECONOMY BY IMPROVING ROADS AND PROVIDING MORE ELECTRICITY IN ADDITION LAVISH GOVERNMENT SPENDING IN MEXICO IS HISTORICALLY ASSOCIATED WITH HIGH INFLATION I THINK WE ARE GOING TO HAVE A FISCAL DEFICIT THIS YEAR FOR THE FIRST TIME SINCE 1989 SAYS SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT AND MANY MEXICANS AND INVESTORS REMEMBER 1987 THAT WAS WHEN THE FEDERAL DEFICIT STOOD AT 161 OF GDP FUELING AN ANNUAL INFLATION RATE OF 159 THE VIOLENCE IN CHIAPAS MAY ALSO COME TO WORRY INVESTORS BECAUSE IT HAS CREATED A SMALL OPENING FOR THE LEFTIST PRESIDENTIAL CANDIDATE CUAUHTEMOC CARDENAS MR CARDENAS HAS BEEN TRYING NOT TO PLAY TOO BLATANTLY ON EVENTS IN CHIAPAS BUT BY FOCUSING THE COUNTRY ON THE ISSUE OF POVERTY CHIAPAS MAY BOOST HIS LACKLUSTER CAMPAIGN HIS CHANCES HAVE ALSO IMPROVED SIMPLY BECAUSE THE AUGUST ELECTIONS ARE LIKELY TO BE FAIRER THAN THEY'VE BEEN IN THE PAST THIS IS BECAUSE INTERNATIONAL ATTENTION WILL BE FOCUSED ON THE VOTE GIVEN THE EVENTS IN CHIAPAS AND THE RECENTLY IMPLEMENTED NORTH AMERICAN FREE TRADE AGREEMENT IN ANY CASE CHIAPAS EMBARRASSES THE RULING PARTY WHOSE CANDIDATE LUIS DONALDO COLOSIO HAS PLEDGED TO CONTINUE THE SALINAS ECONOMIC REFORMS THAT INVESTORS FIND SO ENCOURAGING THE MEXICAN GOVERNMENT DOES HOWEVER RETAIN CONSIDERABLE FINANCING FLEXIBILITY MODERATE DEFICIT SPENDING COULD EASILY BE FINANCED IN THE CAPITAL MARKETS THROUGH SALES OF MEXICAN TREASURY BILLS ALSO THE MEXICAN GOVERNMENT STILL OWNS RESIDUAL STAKES IN MANY OF THE BUSINESSES IT SOLD OVER THE PAST THREE YEARS OVER THE WEEKEND REPORTS CIRCULATED IN MEXICO THAT THE GOVERNMENT WILL SOON SELL ITS REMAINING 46 HOLDING IN THE TELEPHONE MONOPOLY TELEFONOS DE MEXICO SA RAISING ABOUT 16 BILLION POWER COMPANIES PORTS AND AIRPORTS COULD ALSO STILL BE SOLD OFF I THINK WE WILL END UP WITH A SMALL DEFICIT AT THE END OF 1994 PREDICTS JONATHAN HEATH CHIEF ECONOMIST AT MACRO ASESORIA ECONOMICA A MEXICAN ECONOMIC RESEARCH FIRM BUT THE GOVERNMENT HAS DEGREES OF LIBERTY TO DO IT WITHOUT CAUSING A PANIC IN THE MARKETS 9401100171 940110 WHO'S NEWS ITT CORP ITT CORP HARTFORD CONN EDWARD L MORGAN JR 50 YEARS OLD WAS ELECTED A SENIOR VICE PRESIDENT AT THE ITT HARTFORD INSURANCE GROUP UNIT OF THIS INDUSTRIAL AND FINANCIAL SERVICES CONGLOMERATE MR MORGAN WAS FORMERLY VICE PRESIDENT CORPORATE RELATIONS 9401100170 940110 WHO'S NEWS MEDSTAT GROUP INC MEDSTAT GROUP INC ANN ARBOR MICH TIMOTHY E MURNANE 44 YEARS OLD FORMER PRESIDENT OF THE MEDSTAT SYSTEMS UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPUTERIZED HEALTHCARE INFORMATION PROVIDER EFFECTIVE IMMEDIATELY 9401100169 940110 WHO'S NEWS JWP INC JWP INC RYE BROOK NY JEFFREY M LEVY 41 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THIS TECHNICAL SERVICES PROVIDER MR LEVY WAS PREVIOUSLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S MECHANICAL/ELECTRICAL SERVICES UNIT EASTERN REGION 9401100168 940110 WHO'S NEWS ALUMINUM CO OF AMERICA ALUMINUM CO OF AMERICA PITTSBURGH VINCENT R SCORSONE 58 YEARS OLD WILL RETIRE AS EXECUTIVE VICE PRESIDENTCHAIRMAN'S COUNSEL ON JAN 31 MR SCORSONE'S SUCCESSOR HASN'T BEEN NAMED 9401100167 940110 CALFED HOLDERS TO ASK BOARD TO CONSIDER BID BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA FEDERAL BANK'S KEY SHAREHOLDERS PLAN TO ASK THEIR BOARD TO CONSIDER SELLING THE TROUBLED THRIFT TO BIDDER GOLDEN WEST FINANCIAL CORP PEOPLE CLOSE TO THE TALKS SAID IF CALFED'S BOARD BALKS THE SHAREHOLDERS MAY NOMINATE THEIR OWN SLATE OF DIRECTORS FOR THE THRIFT'S APRIL ANNUAL MEETING WHEN THREE DIRECTORS COME UP FOR REELECTION SAID ONE PERSON CLOSE TO THE TALKS THE SHAREHOLDERS' DECISIONS TO INDIVIDUALLY APPROACH THE BOARD CAME AFTER AN INVITATIONONLY MEETING LATE THURSDAY WITH GOLDEN WEST CHAIRMAN HERBERT M SANDLER GOLDEN WEST HAS OFFERED TO BUY CALFED FOR ABOUT 630 MILLION THAT INCLUDES 2150 A SHARE FOR CALFED'S 25 MILLION SHARES OUTSTANDING EQUAL TO CALFED'S BOOK VALUE AS OF SEPT 30 PLUS 90 MILLION FOR A PREFERRED STOCK ISSUE WITH A MARKET VALUE OF ONLY 384 MILLION COMPARED WITH 25 BILLION FOR GOLDEN WEST CALFED WOULDN'T BE A BIG SWALLOW BUT CALFED BASED IN LOS ANGELES COULD BE AN ENGINE FOR OAKLANDBASED GOLDEN WEST WHOSE GROWTH HAS STALLED IN RECENT YEARS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GOLDEN WEST'S STOCK CLOSED AT 4375 UP 450 OR 11 THAT PUTS IT 13 BELOW ITS 52WEEK HIGH OF 50375 CALFED'S STOCK CLOSED AT 16375 UP 25 CENTS ON THE BIG BOARD CALFED'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER EDWARD G HARSHFIELD HAS PLAYED DOWN MR SANDLER'S WRITTEN OFFER AS A STARTING POINT TO MARK DOWN MR SANDLER DECLINED COMMENT SOME HOLDERS WOULD PREFER A STOCK DEAL BUT ARE WILLING TO SELL FOR CASH ONE PERSON CLOSE TO THE TALKS SAID MOST SEEMED WILLING TO SETTLE FOR MR SANDLER'S BID BUT ONE LARGE HOLDER ALAN SNYDER OF SNYDER CAPITAL MANAGEMENT SAN FRANCISCO SAYS HE WANTS MORE A PRICE OF 2150 A SHARE WOULD BE VERY POSITIVE FOR GOLDEN WEST MR SNYDER SAID THAT WOULD IMPLY YOU HAVE ROOM TO RAISE THE PRICE MR SNYDER WASN'T AT THURSDAY NIGHT'S MEETING 9401100166 940110 RENAULT ESTIMATES IT HAD SMALL '93 NET SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH STATECONTROLLED AUTO MAKER RENAULT SA SAID IT HOPES TO POST A SMALL PROFIT FOR 1993 DESPITE THE COLLAPSE OF THE FRENCH AND EUROPEAN CAR MARKETS IN 1992 RENAULT POSTED AN 85 RISE IN NET INCOME TO 568 BILLION FRANCS 9586 MILLION PATRICK FAURE RENAULT'S DEPUTY GENERAL MANAGER SAID THE RENAULT 1993 SALES PERFORMANCE WAS ACCEPTABLE GIVEN THE MARKET'S WEAKNESS NOTING THAT RENAULT HAD MAINTAINED ITS SHARE OF THE EUROPEAN CAR MARKET AT 106 HELPED BY THE LAUNCH OF ITS NEW MINICAR THE TWINGO RENAULT IMPROVED ITS SHARE OF THE FRENCH CAR MARKET TO 306 IN 1993 FROM 295 A YEAR EARLIER WRESTING THE NO 1 POSITION FROM RIVAL PSA PEUGEOT CITROEN SA RENAULT DID SUBSTANTIALLY BETTER IN NORTHERN EUROPE WHERE IT GAINED MORE THAN A PERCENTAGE POINT IN MARKET SHARE THAN IN THE SOUTH WHERE IT WAS HIT BY THE DEVALUATIONS IN SPAIN AND ITALY AND AN ENSUING PRICE WAR THAT CAUSED RENAULT TO LOSE SOME MARKET SHARE MR FAURE REMARKED THAT A PRICE WAR IN COUNTRIES WHERE PROFIT MARGINS WERE ALREADY SLIM IF NOT NONEXISTENT WAS INCOMPREHENSIBLE THE UNITED KINGDOM WAS ONE OF THE FRENCH CAR MAKER'S MOST BUOYANT MARKETS IN 1993 WITH SALES SURGING 274 TO 93184 MAKING RENAULT THE NO 1 IMPORTER IN BRITAIN WITH A MARKET SHARE OF 52 UP FROM 46 IN 1992 OUTSIDE EUROPE RENAULT HAD A REMARKABLY GOOD PERFORMANCE IN TURKEY WITH SALES GROWING 216 TO 131800 UNITS MAKING THIS MARKET RENAULT'S THIRDBIGGEST NATIONAL MARKET IN VIEW OF THE WEAKNESS OF THE EUROPEAN MARKET IN 1993 AND AN EXPECTED SLOW RECOVERY IN 1994 RENAULT PLANS TO FOCUS MORE OF ITS ENERGY ON DEVELOPING SALES IN MARKETS WHERE THE COMPANY'S PRESENCE IS RELATIVELY LIMITED AT PRESENT MR FAURE SAID 9401100165 940110 CONRAN STORES INC FILES FOR PROTECTION FROM CREDITORS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SUFFERING FROM WEAK SALES CONRAN STORES INC THE ONCE TRENDSETTING HOME FURNISHINGS RETAILER FILED LATE FRIDAY FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE CONRAN STORES WHICH OPERATES RETAIL OUTLETS IN SEVEN STATES UNDER THE NAME CONRAN'S HABITAT WAS SOLD BY LONDONBASED STOREHOUSE PLC IN LATE 1992 TO A GROUP OF AMERICAN INVESTORS LED BY RETAILER MARVIN TRAUB FORMER CHAIRMAN OF BLOOMINGDALE'S A UNIT OF FEDERATED DEPARTMENT STORES INC THE US GROUP AT THE TIME HAD BOLD PLANS TO RESUSCITATE THE FLAGGING CHAIN BY INTRODUCING A NEW ASSORTMENT OF DESIGNER MERCHANDISE AND BY REVIVING THE COMPANY'S DORMANT CATALOG BUT IN A STATEMENT ISSUED SATURDAY THE CHAIN OF 14 SPECIALTY STORES SAID THAT WHILE IT HAD IMPROVED OPERATIONS IN 1993 THE DIFFICULT AND VERY COMPETITIVE RETAIL ENVIRONMENT AND THE CONTINUING GENERAL ECONOMIC DECLINE WHICH HAD SEVERELY AFFECTED CONRAN'S DURING PRIOR YEARS PROVED TOO HIGH A HURDLE TO OVERCOME IN AN INTERVIEW MR TRAUB SAID SALES DURING THE CHRISTMAS SEASON AT CONRAN STORES OPEN AT LEAST A YEAR WERE UP 10 FROM THE PERIOD IN 1992 BUT WE NEEDED TO BE UP MORE THAN THAT MR TRAUB SERVED AS CHAIRMAN OF CONRAN'S EXECUTIVE COMMITTEE AND WAS ONE OF THE PARTNERS IN MTLG ACQUISITION CORP THE GROUP THAT ACQUIRED CONRAN STORES ITS OTHER PARTNERS INCLUDE LESTER GRIBETZ FORMER VICE CHAIRMAN OF BLOOMINGDALE'S AND KENNETH LAZAR A FINANCIAL AND MANAGEMENT CONSULTANT CONRAN STORES SAID ALL STORES REMAINED OPENED AND THAT THE COMPANY HOPED TO CONTINUE IN SOME FORM THE COMPANY SAID IT IS IN DISCUSSIONS WITH SEVERAL PARTIES INCLUDING ETHAN ALLEN INTERIORS INC THE DANBURY CONNBASED FURNITURE MAKER AND RETAILER THOUGH IT DIDN'T CHARACTERIZE THOSE TALKS IF THE DISCUSSIONS ARE ENCOURAGING OVER THE NEXT SEVERAL DAYS CONRAN'S PLANS TO FORM A REORGANIZED COMPANY SHOULD THE TALKS FAIL THE COMPANY SAID IT WILL TAKE APPROPRIATE ACTION TO MAXIMIZE RECOVERIES FROM A PROMPT SALE OF ITS ASSETS ETHAN ALLEN EXECUTIVES COULDN'T BE REACHED FOR COMMENT MR TRAUB SAID YESTERDAY THAT HIS GROUP BOUGHT A VERY SICK COMPANY THAT HAD LOST 50 MILLION IN THE THREE YEARS PRIOR TO HIS GROUP'S ACQUISITION 9401100164 940110 LEISURE & ARTS ON SPORTS USFSA TO KERRIGAN GET WELL AND SKATE BY FREDERICK C KLEIN DETROIT THE MINDLESS VIOLENCE THAT HAS COME TO BE ACCEPTED AS PART OF THE REAL WORLD REVISITED SPORTS LAST WEEK IT WAS ALL THE MORE SHOCKING BECAUSE THE ACTIVITY INVOLVED WAS FIGURE SKATING A MILIEU OF SMILES SEQUINS AND FLORAL BOUQUETS THAT IS A SPORT ONLY BY TORTURED DEFINITION THE TARGET WAS SLIM DARKHAIRED NANCY KERRIGAN THE DEFENDING NATIONAL WOMEN'S SINGLES CHAMPION AND BRONZE MEDALIST AT THE 1992 OLYMPICS ON THURSDAY AFTERNOON HERE STEPPING OFF THE ICE AFTER A PRACTICE SESSION AT COBO ARENA NEXT DOOR TO THE JOE LOUIS ARENA THE VENUE OF THE 1994 US CHAMPIONSHIPS KERRIGAN WAS ATTACKED BY A MAN WHO STRUCK HER RIGHT KNEE WITH A PIPE OR CROWBAR AND FLED THE RESULTING INJURY FORCED HER TO WITHDRAW FROM THE COMPETITION THE QUALIFYING EVENT FOR NEXT MONTH'S WINTER GAMES IN LILLEHAMMER NORWAY THE NATIONALS WENT ON AS SCHEDULED BUT THE DOINGS ON THE ICE BECAME SECONDARY HOW WAS NANCY BADLY BRUISED BUT NOT HURT AS SERIOUSLY AS SHE MIGHT HAVE BEEN WHO DID IT AND WHY STILL NO ANSWERS AS OF MIDDAY YESTERDAY ALTHOUGH THERE WERE SEVERAL WITNESSES TO THE ATTACK WOULD HER OLYMPIC HOPES BE SNUFFED NO AS IT TURNED OUT ON SATURDAY NIGHT AFTER THE OTHER WOMEN HAD PERFORMED US FIGURE SKATING ASSOCIATION USFSA ANNOUNCED THAT A RULE APPARENTLY TO THE CONTRARY NOTWITHSTANDING SHE WOULD BE GIVEN ONE OF THE TWO OGAMES WOMEN'S SINGLES SPOTS ALLOTTED TO THIS LAND IF SHE HEALS IN TIME ANSWERS TO THE DEEPER QUESTIONS RAISED BY THE INCIDENT WERE BEYOND THE KEN OF THE FIGURESKATING CROWD THEY HAVE TO DO WITH THE NATURE OF PRESENTDAY CELEBRITY AND RECENT DECISIONS BY POLITICIANS AND THE MEDICAL PROFESSION ABOUT THE TREATMENT OF THE MENTALLY ILL THE AREA IN WHICH KERRIGAN WAS ATTACKED WAS SUPPOSEDLY CLOSED TO THE GENERAL PUBLIC PROMPTING SOME FINGERPOINTING ABOUT SECURITY BETWEEN LOCAL POLICE AND THE MEET'S ORGANIZERS THAT PROVOKED ONLY KNOWING SHRUGS AMONG PEOPLE WHO'VE BEEN BACKSTAGE AT MAJOR SPORTING EVENTS THOSE PRECINCTS TYPICALLY TEEM WITH JOURNALISTS MAINTENANCE MEN PEOPLE LUGGING ELECTRICAL GEAR VOLUNTEER WORKERS OF VARIOUS STRIPE FOODSERVICE EMPLOYEES AGENTS OFFICIALS AND PROMOTERS AND THEIR FRIENDS THIS GROUP WAS AS LARGE HERE AFTER THE ASSAULT AS BEFORE AND THAT DOESN'T INCLUDE TICKET HOLDERS ONE OF WHOM SPRANG FROM THE STANDS TO STAB MONICA SELES DURING A TENNIS TOURNAMENT IN GERMANY LAST SPRING AT A TIME WHEN IT SEEMS EVERYONE WHO'S DANGEROUS ALSO IS ARMED ONE CAN ONLY BE GRATEFUL THAT THE NUT WHO ATTACKED KERRIGAN HAD ONLY A CLUB IN HIS HAND AND AIMED LOW IF THERE WAS A BRIGHT SPOT TO THE KERRIGAN AFFAIR IT WAS THE SPIRIT IN WHICH HER COMPETITORS ACCEPTED THE USFSA DECISION TO GIVE HER AN OLYMPIC BERTH WITHOUT COMPETING HERE DESPITE A RULE GRANTING SUCH LEEWAY ONLY TO SKATERS WHO HAD MEDALED IN THE PREVIOUS WORLD CHAMPIONSHIPS KERRIGAN FINISHED FIFTH THERE IT'S FINE SHE DESERVES IT SAID 13YEAROLD MICHELLE KWAN WHO AS THE WOMEN'S SINGLES RUNNERUP WOULD HAVE GONE TO LILLEHAMMER WITHOUT THE GROUP'S RULING NANCY'S BEEN IN IT A LONG TIME IT'S GREAT THAT SHE'S GOING SAID THIRDPLACE FINISHER NICOLE BOBEK GOING TO NORWAY WITH KERRIGAN WILL BE TONYA HARDING WHO FINISHED FIRST HERE A CONSIDERABLE ATHLETE BUT EASILY DISTRACTED SHE CAPTURED ONE PREVIOUS IMPORTANT CROWN THE 1991 NATIONALS BUT HAD FLOUNDERED SINCE SOMETIMES BLAMING THINGS LIKE SKEWED SKATE BLADES AND SNAPPED SHOULDER STRAPS FOR HER DIFFICULTIES BUT ON SATURDAY NIGHT BEFORE THE EVENT'S LARGEST CROWD THE 23YEAROLD BLONDE FROM PORTLAND ORE A BLUECOLLAR GIRL IN A WHITECOLLAR SPORT WAS THE STAR COMPLETING FOUR TRIPLESPIN JUMPS AND ERRING ONLY IN NOT COMPLETING A DOUBLE OF THE SIX TOP FINISHERS AFTER FRIDAY'S SOCALLED TECHNICAL PROGRAM ONLY SHE DID NOT FALL OR STUMBLE BADLY IN THE FREESKATE I'M GOING TO LILLEHAMMER TO WIN SHE DECLARED I SEE MYSELF AS MY TOP COMPETITION I'M THE PERSON I HAVE TO BEAT FROM A COMPETITIVE STANDPOINT THE MEN'S SIDE WAS MORE INTERESTING IT CENTERED ON THE COMEBACK OF BRIAN BOITANO WHO EMBARKED UPON THE ICESHOW CIRCUIT AFTER WINNING TWO WORLD'S TITLES AND THE 1988 OLYMPIC GOLD MEDAL HE WAS ONE OF SEVERAL AMERICANS WHO TOOK ADVANTAGE OF A RECENT INTERNATIONAL RULE CHANGE PERMITTING A ONETIME OLYMPIC REINSTATEMENT FOR PROFESSIONALS BUT THE ONLY ONE OF THEM TO MAKE A SERIOUS SPLASH HERE NOW 30 YEARS OLD AND POSSESSING SEVERAL SOMETIMES BALKY BODY PARTS BOITANO STILL PROVED SUBTLE ENOUGH TO REEL OFF A POLISHED PERFORMANCE IN HIS TECHNICAL PROGRAM AND TAKE FIRST PLACE GOING INTO THURSDAY NIGHT'S FREESKATE FINAL HE WAS SMOOTH IN THAT ONE TOO BUT HIS ROUTINE TO THE SUBDUED STRAINS OF AARON COPLAND THEMES DIDN'T MEASURE UP TO THAT OF 21YEAROLD SCOTT DAVIS THE DEFENDING NATIONAL TITLIST DAVIS'S MUSICAL ACCOMPANIMENT FROM WEST SIDE STORY WAS SNAPPIER STUFF AND HE PUNCTUATED HIS SEVEN SUCCESSFUL TRIPLES WITH UNFIGSLIKE FIST PUMPING SIX OF THE NINE JUDGES RATED THE MONTANA NATIVE'S PERFORMANCE AS BEST THE SAME NUMBER THAT HAD FAVORED BOITANO'S TECHNICAL PROGRAM BUT THE FREESKATE SCORE COUNTED FOR TWICE AS MUCH ALLOWING DAVIS TO PREVAIL DESPITE HIS DEFENDINGCHAMP STATUS DAVIS CAME HERE AS UNDERDOG TO THE MOREACCOMPLISHED BOITANO THANKS IN PART TO THE TENDENCY OF THE SPORT'S JUDGES TO GRADE FACES RATHER THAN SHOWS DAVIS'S COACH KATHY CASEY REFERRED TO THIS AFTERWARD SAYING WHEN WE OPENED THE NEWSPAPER YESTERDAY THE HEADLINE SAID WHO'S NO 2' TO BOITANO SO I WAS A LITTLE SURPRISED AT THE JUDGING BUT BOTH MEN QUALIFIED FOR THE OLYMPICS AND MAYBE DAVIS'S TWO US CROWNS WILL IMPROVE HIS APPEAL IN THAT GOAROUND WHAT LINGERED HERE THOUGH WASN'T HIS OR ANY OTHER PERFORMANCE BUT ONE OF KERRIGAN'S ANSWERS AT THE PRESS CONFERENCE AT WHICH SHE ANNOUNCED HER WITHDRAWAL REMINDED THAT SHE'D BEEN HEARD SOBBING WHY ME AS HER ATTACKER FLED SHE WAS ASKED IF SHE'D THOUGHT ABOUT THAT QUESTION FURTHER 9401100161 940110 WHO'S NEWS ERNST & YOUNG ERNST & YOUNG NEW YORK JAMES S DISTASIO 46 YEARS OLD WAS NAMED MANAGING PARTNER OF THIS ACCOUNTING TAX AND CONSULTING FIRM'S NEW ENGLAND TERRITORY BASED IN BOSTON HE SUCCEEDS TOM P MCDERMOTT 58 WHO IS RETIRING MR DISTASIO MOST RECENTLY WAS MANAGING DIRECTOR FOR THE COMPANY'S GREAT LAKES MANAGEMENT CONSULTING GROUP 9401100160 940110 WHO'S NEWS MUTUAL OF AMERICA MUTUAL OF AMERICA NEW YORK THEODORE J O'DELL 49 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CONTROLLER OF THIS LIFE INSURANCE COMPANY THE POSITION IS NEW MR O'DELL WAS FORMERLY VICE PRESIDENT AND DEPUTY CONTROLLER OF EQUITABLE COS' EQUITABLE LIFE ASSURANCE SOCIETY UNIT AN INSURANCE AND INVESTMENT MANAGEMENT COMPANY IN NEW YORK 9401100157 940110 WHO'S NEWS AMERITECH CORP AMERITECH CORP CHICAGO VICE CHAIRMAN LOUIS J RUTIGLIANO 55 YEARS OLD WILL RETIRE FROM THIS REGIONAL BELL TELEPHONE COMPANY AT THE END OF JUNE THE COMPANY WILL REORGANIZE HIS FUNCTIONS INTO A UNIT FOCUSING ON INTERNATIONAL ACTIVITIES MR RUTIGLIANO WILL OVERSEE THE UNIT'S TRANSITION AFTER WHICH THE UNIT WILL REPORT TO RICHARD C NOTEBAERT PRESIDENT AND CHIEF EXECUTIVE OFFICER A SPOKESMAN SAID IT IS UNCERTAIN WHETHER THE COMPANY WILL NAME A NEW VICE CHAIRMAN 9401100156 940110 HOUGHTON PLANS TO ACQUIRE BOOK PUBLISHER MCDOUGAL LITTELL PURCHASE WILL DOUBLE COMPANY'S SECONDARYSCHOOL SALES BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON HOUGHTON MIFFLIN CO SAID ITS SECONDARYSCHOOL TEXTBOOK SALES WILL DOUBLE AS A RESULT OF ITS PROPOSED ACQUISITION OF MCDOUGAL LITTELL & CO WHILE NEW OPPORTUNITIES WILL BE OPENED TO SELL MORE COLLEGE TEXTS AND TO DEVELOP ADDITIONAL CDROM PRODUCTS NADER F DAREHSHORI CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT HOUGHTON HAS BEEN STRUGGLING TO DEVELOP MORE SECONDARYSCHOOL SALES INTERNALLY AND HAD BEEN COURTING MCDOUGAL FOR THREE YEARS HOUGHTON SAID ON FRIDAY THAT IT WOULD PAY 138 MILLION FOR THE EVANSTON ILL COMPANY WHICH IS BEST KNOWN FOR ITS LITERATURE SERIES FOR SIXTH TO TWELFTH GRADES MR DAREHSHORI SAID MCDOUGAL HAS ABOUT 62 MILLION IN ANNUAL SALES ABOUT 40 MILLION OF IT IN SECONDARY SCHOOLS THE ADDITIONAL REVENUE WILL BRING HOUGHTON'S SECONDARYSCHOOL SALES TO ABOUT 80 MILLION HE ADDED IT HAS BEEN HOUGHTON MIFFLIN'S STRATEGY FOR MANY YEARS TO DEVELOP OUR SECONDARYSCHOOL PUBLISHING LIST BUT WE HAD NOT BEEN ABLE TO FIND A SUITABLE COMPANY TO BUY AND INTERNAL DEVELOPMENT HAS TAKEN A LONG TIME MR DAREHSHORI SAID THIS MAKES IT POSSIBLE TO HAVE AN OUTSTANDING SECONDARY SCHOOL DIVISION MR DAREHSHORI SAID THAT FURTHER ACQUISITIONS WILL BE PUT ON HOLD FOR A WHILE BUT THAT HOUGHTON HAS A LONGTERM INTEREST IN ADDING TO ITS SUPPLEMENTALPUBLISHING OPERATIONS MAINLY IN THE TESTPUBLISHING AREA THE HOUGHTON CHAIRMAN WHO HAS PROMPTED A SERIES OF ACQUISITIONS AND DIVESTITURES DURING HIS TENURE ALSO SAID MCDOUGAL WAS LARGELY COMPLEMENTARY TO HOUGHTON'S OPERATIONS SO THAT THE MERGER WOULD GENERATE LITTLE FRICTION OR OVERLAP IN EDITORIAL OPERATIONS BUT HE SAID ABOUT 80 TO 100 OF MCDOUGAL'S 300 EMPLOYEE POSITIONS IN ADMINISTRATION SERVICES AND MANUFACTURING WOULD BE CUT IN LESS THAN A YEAR GENERATING COST SAVINGS MR DAREHSHORI AND STEPHEN JAEGER CHIEF FINANCIAL OFFICER DECLINED TO DISCLOSE MCDOUGAL'S EARNINGS BUT HOUGHTON SAID THAT ITS EARNINGS WOULD BE DILUTED IN 1994 AND ENHANCED IN 1995 AS A RESULT OF THE TAKEOVER MR JAEGER SAID HE ISN'T GIVING SPECIFIC GUIDANCE TO ANALYSTS ON DILUTION BUT ADDED THAT HE WOULDN'T TAKE STRONG ISSUE WITH ONE ANALYST'S PRELIMINARY ESTIMATE THAT THIS YEAR'S NET WILL BE 25 CENTS A SHARE LOWER AS A RESULT OF THE TAKEOVER THE AVERAGE ESTIMATE OF 10 ANALYSTS FOR HOUGHTON FOR 1994 WAS 292 A SHARE PRIOR TO FRIDAY'S ANNOUNCEMENT ACCORDING TO ZACKS INVESTMENT RESEARCH INC HOUGHTON HAD NET INCOME OF 301 MILLION OR 218 A SHARE FOR THE FIRST NINE MONTHS OF 1993 ON SALES OF 3016 MILLION MR DAREHSHORI SAID THAT THE ACQUISITION OF MCDOUGAL'S SALES FORCE IN SECONDARY SCHOOLS IS ONE OF ITS BIGGEST STRATEGIC ADVANTAGES TO THE TAKEOVER THIS HE SAID WILL GIVE HOUGHTON BETTER OPENINGS TO SELL COLLEGE TEXTS TO HIGH SCHOOLS WITH ADVANCEDPLACEMENT CLASSES A GROWING MARKET THAT HAS BEEN DIFFICULT FOR HOUGHTON TO PENETRATE MCDOUGAL ALSO PUBLISHES ECONOMICS FOREIGNLANGUAGE AND MATHEMATICS TEXTBOOKS AND HAS CDROM OFFERINGS IN ELEMENTARY SPELLING FOREIGNLANGUAGE AND ECONOMICS MR DAREHSHORI SAID CDROM REFERS TO VIDEODISKS THAT CAN BE READ BY LASERS ALTHOUGH OTHER PUBLISHING COMPANIES ARE DEVOTING MORE CAPITAL TO THE DEVELOPMENT OF ELECTRONIC ALTERNATIVES MR DARESHORI SAID SCHOOL PUBLISHING RETAINS HIGH PROFITABILITY WE HAVE BEEN MOVING IN THE DIRECTION OF MORE ELECTRONIC PRODUCTS BUT TO MOVE IN THAT AREA YOU NEED TO HAVE AN INTELLECUTUAL PROPERTY AND THEN DECIDE HOW YOU WILL DEVELOP IT MR DAREHSHORI SAID MCDOUGAL LITTELL WILL NOT ONLY GIVE US THE CONTENT BUT THEY ALREADY HAVE EXPERTISE IN DEVELOPING CDROM PROGRAMS 9401100155 940110 WHO'S NEWS ABC RAIL PRODUCTS CORP ABC RAIL PRODUCTS CORP CHICAGO DONALD GRINTER WAS NAMED CHAIRMAN OF THIS RAILROAD ENGINEERING AND MANUFACTURING CONCERN THAT BECAME A PUBLICLY HELD COMPANY EARLIER THIS MONTH MR GRINTER 57 YEARS OLD CONTINUES AS CHIEF EXECUTIVE OFFICER ABC RAIL ALSO NAMED BEN R YORKS PRESIDENT AND CHIEF OPERATING OFFICER MR YORKS 52 WAS FORMERLY PRESIDENT OF THE FORESTRY AND INDUSTRIAL EQUIPMENT UNIT OF BLOUNT INC MONTGOMERY ALA 9401100154 940110 BEIJING'S CAMPAIGN TO SLOW ECONOMY MEETS ITS MATCH IN LOCAL OFFICIALDOM BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL SHIJI CHINA NEWS THAT THE CENTRAL GOVERNMENT PLANS TO LEVY A STEEP TARIFF ON IMPORTED CARS BEGINNING THIS MONTH REACHED SU ZHIMING AS THE LOCAL LEADER WAS DINING WITH HIS STAFF AND A VISITOR MR SU WHO IS THE COMMUNIST PARTY BOSS AND MAYOR OF THIS TOWN SOUTHEAST OF GUANGZHOU PUTS DOWN HIS CHOPSTICKS AND GRABS HIS PORTABLE TELEPHONE I WANT YOU TO CLEAN OUT THE DEALERS' STOCK OF IMPORTED CARS HE SHOUTS INTO THE PHONE THEN THE 45YEAROLD MAYOR WHO USUALLY RIDES AROUND IN A MERCEDES 300 TURNS TO THE GUEST AND CONFIDES I WANT TO GET A 600 AS IN MUCH OF COASTAL CHINA THERE IS LITTLE SIGN OF AUSTERITY HERE DESPITE AN EDICT FROM BEIJING LAST YEAR BARRING GOVERNMENT AGENCIES FROM BUYING IMPORTED CARS SHIJI IS IN THE PROCESS OF ACQUIRING 42 OF THEM TO ADD TO ITS FLEET OF MORE THAN 100 INCLUDING A ROLLSROYCE THE TOWN IS MUSHROOMING IT HAS MANY BUILDING PROJECTS UNDER WAY INCLUDING A LUXURY HOTEL A RESIDENTIAL DEVELOPMENT AND A PRIMARY SCHOOL EQUIPPED WITH AN OLYMPICSIZE SWIMMING POOL SHIJI'S NEW CARS AND PUBLIC FACILITIES ARE FINANCED LARGELY BY INCOME GENERATED FROM SALES OF LAND OR NEW APARTMENTS MOSTLY TO BUYERS FROM HONG KONG OR ELSEWHERE IN CHINA THE TOWN'S 65000 RESIDENTS HAVE HUNG UP THEIR SICKLES AND SURRENDERED THEIR FARMLAND TO LOCAL AUTHORITIES IN RETURN FOR ANNUAL BONUSES AND A LIFESTYLE OF THE NOUVEAU RICHE FEATURING MOTORBIKES MOBILE PHONES AND VILLAS MUCH OF THIS FUN WOULD BE SPOILED IF VICE PREMIER ZHU RONGJI HAD HIS WAY MR ZHU CHINA'S TOP ECONOMIC OFFICIAL IS STRUGGLING TO REDUCE INFLATION WITH HIS SIXMONTHOLD AUSTERITY PROGRAM WHICH WAS DESIGNED TO HALT SPECULATION IN PROPERTY AND SHARES HE AND OTHER CENTRALGOVERNMENT OFFICIALS ALSO INTEND TO RAKE IN A BIGGER SHARE OF THE TAX REVENUE GENERATED IN THE PROVINCES BUT A TOUR OF SHIJI SUGGESTS THAT BEIJING HAS NEITHER THE ABILITY NOR THE POLITICAL WILL TO ENFORCE THE AUSTERITY PROGRAM WHICH IS ALREADY FIZZLING OUT SHOULD BEIJING FAIL TO BRING LOCAL OFFICIALS TO HEEL THE RISK IS THAT CHINA'S ECONOMY WILL OVERHEAT AGAIN IGNITING A NEW BURST OF INFLATION THAT IN TURN COULD FORCE THE GOVERNMENT TO TIGHTEN CREDIT AND RESTRICT IMPORTS SO SEVERELY THAT THE ECONOMY WOULD LURCH INTO RECESSION PERPETUATING CHINA'S TRADITION OF SWINGING FROM BOOM TO BUST HERE IN SHIJI HOWEVER PARTY CADRES SEE LITTLE TO GAIN FROM AUSTERITY THEIR INCOMES DEPEND ON ANNUAL BONUSES TIED TO THE PROFITS CHALKED UP BY THREE DOZEN LOCAL COMPANIES OPERATED BY THE TOWN COUNCIL AND ENGAGED IN SUCH BUSINESSES AS PROPERTY DEVELOPMENT IMPORTEXPORT TRADING AND LIGHT INDUSTRY AIDES TO MR SU THE NO 1 BUREAUCRAT IN SHIJI SAY HIS 1993 TAKEHOME PAY TOTALED ABOUT 18000 YUAN 3100 AT THE OFFICIAL RATE THAT'S FAR MORE THAN THE SALARY OF CHINA'S NO 1 PARTY SECRETARY JIANG ZEMIN STILL THE SWAGGERING MAYOR DOESN'T SEEM SATISFIED A BUSINESS TALENT LIKE MINE IS WORTH MORE THAN ONE MILLION YUAN 170000 IN HONG KONG BOASTS MR SU WHOSE NAME CARD LISTS FIVE BUSINESS TITLES IN ADDITION TO HIS PARTY AND GOVERNMENT ROLES MY BRAINS ARE 100 OCCUPIED BY IDEAS FOR MAKING MONEY A NATIVE OF SHIJI THE MAYOR IS TYPICAL OF THE LOCAL LEADERS WHOSE INDEPENDENT WAYS AND BOLD INITIATIVES HAVE LED THE COUNTRY'S LONG MARCH TO CAPITALISM SINCE HE BECAME MAYOR IN 1987 MR SU HAS TRANSFORMED AN IMPOVERISHED FARM TOWN INTO A GLEAMING NEW CENTER OF LIGHT INDUSTRY AND PROPERTY DEVELOPMENT RICE FIELDS HAVE GIVEN WAY TO A BRIGHTLY COLORED CASTLESHAPED KINDERGARTEN A STATEOFTHEART SPORTS STADIUM AND A SPACIOUS OLDAGE HOME FACILITIES THAT COULD NEVER HAVE BEEN BUILT HAD THE TOWN CONTINUED TO DEPEND ON CENTRAL GOVERNMENT HANDOUTS DENG XIAOPING CALLS FOR ECONOMIC REFORMS MR SU SAYS OF CHINA'S PARAMOUNT LEADER BUT IF NOT FOR PEOPLE LIKE ME WHO HAVE THE VISION AND BOLDNESS TO EXPERIMENT WITH HIS POLICIES YOU WOULDN'T SEE THIS KIND OF PROGRESS TODAY AS MR SU SEES IT HE IS ONLY NOW BEING REWARDED FOR HIS FORESIGHT IN THE LATE 1980S RISKING THE IRE OF PEASANTS HE EXPROPRIATED HUGE TRACTS OF FARM LAND TO MAKE WAY FOR FACTORY BUILDINGS IN 1988 JUST BEFORE BEIJING BEGAN A CRACKDOWN ON BANK LENDING THE CRACKDOWN DRIED UP BOTH CREDIT AND DEMAND FOR FACTORY SPACE FORCING MR SU TO POSTPONE HIS GRAND VISION FOR DEVELOPMENT AS PEASANTS CLAMORED FOR THE RETURN OF THEIR LAND MR SU WAS INVESTIGATED FOR MONTHS ON A CORRUPTION CHARGE HE WAS FINALLY CLEARED IN 1990 IT WAS THE DARKEST PERIOD OF MY LIFE RECALLS THE MAYOR BUT HE CARRIED ON WITH HIS PLAN AND WAS FINALLY VINDICATED WHEN THE PROPERTY MARKET TOOK OFF IN 1992 PRODUCING HANDSOME PROFITS FOR THE TOWN IN 1993 HE WAS PROMOTED TO PARTY SECRETARY SHIGANG EAST VILLAGE ONE OF 29 GOVERNED BY SHIJI'S TOWN COUNCIL IS TOUTED BY LOCAL OFFICIALS AS A MODEL OF FAIR DISTRIBUTION OF WEALTH IN RETURN FOR TURNING THEIR LAND OVER TO THE VILLAGE EVERY HOUSEHOLD IS GUARANTEED A FIXED ANNUAL CASH INCOME PLUS AN ALLOTMENT OF GRAIN OF THE VILLAGE'S 500 HOUSEHOLDS 80 ARE MILLIONAIRES IN YUAN TERMS OFFICIALS SAY SUCH SCHEMES DON'T ALWAYS PLEASE EVERYONE IN A NEIGHBORING VILLAGE PEASANTS IN 1992 RANSACKED A SHOP SAID TO BE OWNED BY THE VILLAGE PARTY BOSS WHOM THEY ACCUSED OF TAKING LAND WITHOUT GIVING ADEQUATE COMPENSATION STILL LOCAL OFFICIALS EXPRESS DISDAIN FOR VICE PREMIER ZHU'S EFFORTS TO CLAMP DOWN ON PROPERTY SPECULATION RECOVER LOANS FROM PROPERTY DEVELOPERS AND SCRAP ILLCONCEIVED INDUSTRIAL DEVELOPMENT ZONES AS HE DRIVES A VISITOR AROUND SHIJI IN A NEW LEXUS CAR TAN PEINAN MANAGER OF SHIJI REAL ESTATE CO DISMISSES THE AUSTERITY DRIVE WITH AN OBSCENITY HE SAYS HE KNOWS OF NO PROPERTY VENTURES OR INDUSTRIAL ZONES THAT HAVE BEEN SCRAPPED AS A RESULT OF MR ZHU'S ORDERS BUT DON'T MAYOR SU'S MANY BUSINESS ROLES CONTRAVENE NEW RULES PROHIBITING CADRES FROM DOUBLING AS BUSINESS EXECUTIVES NO PROBLEM MR TAN REPLIES IT'S AGAINST THE RULES IF THE MAYOR HEADS MY COMPANY AND DEALS IN DAYTODAY BUSINESS BUT IT'S ALL RIGHT FOR HIM TO HEAD THE ADMINISTRATIVE HOLDING COMPANY FOR THOSE BUSINESSES SHIJI RECENTLY WAS REQUIRED TO REPAY 10 MILLION YUAN IN LOANS FROM A STATE BANK BUT MAYOR SU SAYS THAT SUM IS TOO INSIGNIFICANT TO AFFECT THE TOWN'S PROJECTS DEMAND FOR FACTORY SPACE AND APARTMENTS HAS COOLED AND PRICES OF LAND ARE DOWN ABOUT 20 FROM THE PEAKS HIT JUST BEFORE THE AUSTERITY PROGRAM WAS ANNOUNCED IN JUNE BUT BECAUSE THE AUSTERITY PLAN HAS HURT STATE FACTORIES MORE THAN THE PROPERTY MARKET BEIJING ALREADY IS RELAXING CURBS ON LENDING PROMPTING WIDESPREAD EXPECTATIONS THAT THE PROPERTY MARKET WILL SOON REBOUND RESTAURANTS SEEM TO BE AMONG THE ONLY BUSINESSES IN SHIJI SERIOUSLY HURT BY THE AUSTERITY PROGRAM OPERATORS SAY BUSINESS HAS SHRUNK 50 SINCE BEIJING BEGAN A CAMPAIGN TO CRACK DOWN ON SQUANDERING OF PUBLIC FUNDS IN AUGUST THE MAYOR IS UNFAZED BY TAX MEASURES ANNOUNCED DURING THE PARTY PLENUM IN NOVEMBER HE AND HIS COLLEAGUES SCOFF AT THE NOTION THAT BEIJING WILL END UP GRABBING A BIGGER SHARE OF TAX REVENUE GENERATED IN THE PROVINCES UNDER THE MEASURES EFFECTIVE JAN 1 STEEPER CENTRALGOVERNMENT TAXES ARE TO BE LEVIED ON LOCAL GOVERNMENTS AND TOWNSHIP COMPANIES BEIJING HOPES TO EXPAND ITS SHARE OF TAXES COLLECTED IN THE PROVINCES TO 60 FROM THE CURRENT 30 TO CIRCUMVENT A NEW CAPITALGAINS TAX ON PROPERTY TRANSACTIONS SAYS MR TAN THE PROPERTY COMPANY OFFICIAL PROPERTY DEVELOPERS WILL CONCEAL THEIR TRUE COSTS LOCAL GOVERNMENTS MEANWHILE MAY SIMPLY UNDERSTATE THEIR REVENUE TO REDUCE TAX LIABILITIES INDEED SHIGANG OFFICIALS PROUDLY CONFIDE THAT THE VILLAGE PRODUCED 36 MILLION YUAN IN PROFIT IN 1992 NEARLY DOUBLE THE 19 MILLION YUAN REPORTED TO THE TOWN COUNCIL BUT WON'T TAX COLLECTORS BEING SENT FROM BEIJING PREVENT SUCH CHEATING SO YOU THINK THOSE TAX OFFICIALS WOULD BE INCORRUPTIBLE RETORTS A SHIJI OFFICIAL 9401100153 940110 FIRST BANK SYSTEM TO SELL UNIT MINNEAPOLIS FIRST BANK SYSTEM INC REACHED A DEFINITIVE AGREEMENT TO SELL ITS BANK IN WASHINGTON STATE TO CENTRAL BANCORP WENATCHEE WASH TERMS WEREN'T DISCLOSED THE BANK TO BE SOLD FIRST BANK WASHINGTON HAD ASSETS OF 59 MILLION AT DEC 31 FIRST BANK SYSTEM SAID THE ACQUISITION IS EXPECTED TO CLOSE DURING THE FIRST HALF AND IS SUBJECT TO APPROVAL BY BANK REGULATORY AUTHORITIES THE COMPANY SAID 9401100151 940110 INTERNATIONAL US AND CHINA LIKELY TO AGREE ON TEXTILE QUOTAS BY LAURENCE ZUCKERMAN AND JULIA LEUNG STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG THE US AND CHINA ARE LIKELY SOON TO REACH AN AGREEMENT THAT WOULD TAKE BACK AT LEAST SOME OF THE CUTS IN CHINA'S TEXTILE QUOTAS THAT WERE ANNOUNCED BY WASHINGTON LAST WEEK EVEN AS THE TWO SIDES WERE TRADING PUBLIC BARBS FRIDAY CHINESE AND US REPRESENTATIVES MET IN BEIJING TO ARRANGE A NEW ROUND OF NEGOTIATIONS ON AN ACCORD TO REPLACE THE BILATERAL TEXTILE AGREEMENT THAT EXPIRED DEC 31 TALKS COULD RESUME AS EARLY AS THIS WEEK PEOPLE CLOSE TO BOTH NEGOTIATING TEAMS SAY IF THEY DO A COMPROMISE COULD BE REACHED BEFORE JAN 17 THE DATE WASHINGTON HAS SET TO IMPLEMENT THE QUOTA CUTS BUT EVEN IF THE NEGOTIATIONS RESUME AFTER THAT DATE OFFICIALS AND BUSINESS EXECUTIVES SAY THE UNILATERAL 25 TO 35 REDUCTIONS IN CHINA'S ANNUAL EXPORT QUOTAS WILL HAVE LITTLE IMPACT SO LONG AS A DEAL IS STRUCK QUICKLY THAT IS BECAUSE IT WILL TAKE SEVERAL MONTHS FOR TRADERS TO FILL THE DIMINISHED QUOTA LEVELS AND FEW WILL ALTER THEIR SOURCING PLANS IF A SETTLEMENT APPEARS IMMINENT DESPITE LAST WEEK'S TOUGH TALK THE DIFFERENCES BETWEEN THE TWO SIDES ARE NARROW WASHINGTON WANTS BEIJING TO DO MORE TO CRACK DOWN ON THE ILLEGAL TRANSSHIPMENT OF CHINESE APPAREL TO THE US THROUGH THIRD COUNTRIES US TRADE OFFICIALS CLAIM SUCH TRADE TOTALED 2 BILLION ABOVE BEIJING'S LEGAL QUOTA OF 47 BILLION IN THE FISCAL YEAR ENDED OCT 31 US OFFICIALS WANT THEIR CHINESE COUNTERPARTS TO AGREE TO HELP THEM GATHER EVIDENCE AGAINST EXPORTERS ENGAGING IN THIS ILLICIT TRADE BUT IN CASE BEIJING REFUSES TO COOPERATE IN THE INVESTIGATION OF A CHINESE COMPANY THAT THE US SUSPECTS IS GUILTY WASHINGTON WANTS TO BE ABLE TO DEDUCT AS MUCH AS THREE TIMES THE AMOUNT TRANSSHIPPED FROM CHINA'S ANNUAL EXPORT QUOTA SUCH A CLAUSE HAS BEEN WRITTEN INTO US TEXTILE AGREEMENTS WITH 16 OTHER COUNTRIES INCLUDING SOUTH KOREA NEPAL AND TURKEY US OFFICIALS SAY BUT BEIJING OBJECTS TO ALLOWING ITSELF TO BE PENALIZED SO SEVERELY IT IS UNFAIR FOR THE US TO INSIST ON THE RIGHT TO DEDUCT FROM THE QUOTAS UPON SUSPICIONS THAT THE GOODS ARE ILLEGAL WITHOUT PRODUCING CLEAR EVIDENCE A CHINESE OFFICIAL SAID NEVERTHELESS THE OFFICIAL REVEALED THAT THE CHINESE ARE NOW READY TO ACCEPT SOME FORM OF PENALTY BUT NOT AS HEAVY AS THAT DEMANDED BY THE US US NEGOTIATORS ALSO ARE WILLING TO COMPROMISE WE NEED A PROCESS THAT CREATES SOME INCENTIVES FOR THEM TO ADDRESS THE PROBLEM SAID A SENIOR US TRADE OFFICIAL THE EXACT LANGUAGE WE ARE WILLING TO NEGOTIATE US OFFICIALS HAVE ALSO SAID THAT AS PART OF A BROADER DEAL THEY WOULD BE WILLING TO REDUCE THE 25 TO 35 CUTS IN CHINA'S 1994 QUOTAS 9401100150 940110 BRIDGESTONE/FIRESTONE CUTS JOBS AKRON OHIO BRIDGESTONE/FIRESTONE INC SAID IT WOULD REDUCE ITS AKRONBASED WORK FORCE BY 159 PEOPLE OFFERING ABOUT 100 EMPLOYEES THE OPPORTUNITY TO RELOCATE AND ELIMINATING 59 POSITIONS THE TIRE MAKER BASED IN NASHVILLE TENN IS A SUBSIDIARY OF BRIDGESTONE CORP OF JAPAN IT HAS 1100 EMPLOYEES IN AKRON AND SAID IT WOULD KEEP ITS TECHNICAL CENTER IN THE CITY THE COMPANY ALSO INDICATED IT'S REVIEWING THE STATUS OF AN ADDITIONAL 70 AKRONBASED EMPLOYEES BUT EMPHASIZED IT HASN'T YET DETERMINED WHAT ACTION IT WILL TAKE 9401100149 940110 ENTERPRISE WORKATHOME DEALS HELP CREATE NEW ENTREPRENEURS DISTANCE CAN STRAIN EMPLOYEEBOSS RELATIONSHIPS SPUR INDEPENDENCE BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL LIKE MANY EMPLOYEES THESE DAYS ERICA SWERDLOW FOUND THAT EVEN THE SWEETEST WORKATHOME DEAL CAN LEAD TO NASTY CONFLICTS WITH THE BOSS HER SOLUTION START HER OWN COMPANY AND COMPETE WITH THE BOSS NOT SO LONG AGO MS SWERDLOW THOUGHT SHE HAD FOUND THE PERFECT WAY TO JUGGLE KIDS AND A CAREER WHEN SHE BECAME PREGNANT FOR THE FIRST TIME IN LATE 1991 SHE CUT A DEAL WITH HER EMPLOYER THAT MOST WOMEN COULD ONLY ENVY HER BOSS STEVEN SIMON FOUNDER AND CHIEF EXECUTIVE OFFICER AT S&S PUBLIC RELATIONS INC NORTHBROOK ILL GAVE HER THREE MONTHS OF PAID MATERNITY LEAVE FROM HER JOB WHICH SHE SAYS PAID NEARLY 90000 A YEAR HE ALSO AGREED AFTER THE LEAVE TO LET MS SWERDLOW WORK THREE DAYS A WEEK AT HOME AND BRING THE BABY TO WORK THE OTHER TWO FOR A SELFDESCRIBED WORKAHOLIC WHO ALSO SAYS SHE WANTS TO HAVE TONS OF KIDS THE ARRANGEMENT SEEMED IDEAL BUT EVEN BEFORE THE BABY WAS BORN SHE SAYS MR SIMON WAS MAKING UNUSUAL DEMANDS ON HER EVEN QUIZZING HER ABOUT CLIENTS BY PHONE AS SHE WENT INTO LABOR BEFORE LONG SHE SAYS SHE WAS HAVING SCREAMING MATCHES WITH MR SIMON AND CRYING AT HER DESK SHE BEGAN LAYING PLANS TO START HER OWN FIRM IN HER HOME LAST JUNE SHE QUIT SEVERAL S&S CLIENTS FOLLOWED HER TODAY SHE SAYS SHE EMPLOYS TWO PEOPLE FULLTIME AT HER EBS PUBLIC RELATIONS INC PLANS TO HIRE A THIRD AND HAS BILLINGS OF 30000 A MONTH MR SIMON DISPUTES MS SWERDLOW'S VERSION OF THE EVENTS LEADING TO HER DEPARTURE HE SAYS HE DOESN'T REMEMBER MAKING UNFRIENDLY REMARKS AND SAYS THE SCREAMING MATCHES SHE DESCRIBES TOOK PLACE MOSTLY BETWEEN HER AND HER COLLEAGUES WITH HIMSELF OFTEN ACTING AS REFEREE SHE HAS A VERY AGGRESSIVE PERSONALITY HE SAYS I WAS INCREDIBLY NICE TO HER HE ADDS BECAUSE SHE ENDED UP WITH SOME OF HIS CLIENTS HE SAYS I SORT OF FINANCED HER COMPANY HOW DO YOU THINK I FEEL THE FALLING OUT DOESN'T SURPRISE AARON NURICK A PROFESSOR OF MANAGEMENT AT BENTLEY COLLEGE IN WALTHAM MASS WHO SPECIALIZES IN INTERPERSONAL RELATIONS IN THE WORKPLACE AS MORE EMPLOYEES WORK AT LEAST PART OF THE TIME AT HOME HE SAYS THE RISK OF MISUNDERSTANDINGS BETWEEN THEM AND THEIR BOSSES IS PROLIFERATING THEY MAY PERFORM THEIR FORMAL TASKS WELL MR NURICK SAYS BUT THERE IS ALSO AN IMPLICIT CONTRACT THAT HAS TO DO WITH RELATIONSHIPS AND INVOLVES SUCH THINGS AS SHARING STORIES AND JOKING AROUND MOST BOSSES SIMPLY LIKE TO HAVE THEIR EMPLOYEES AROUND TO RESPOND TO THE DEMANDS OF THE MOMENT ADDS THOMAS MAHONEY A PROFESSOR OF HUMAN RESOURCES AT OWEN GRADUATE SCHOOL SETTING UP A SCHEDULE FOR WORKING AT HOME IS A DICEY THING THAT POSES ALL KINDS OF ISSUES HE SAYS OF COURSE MANY PEOPLE MANAGE THE TRANSITION WELL CINDY GOLISCH ONE OF THREE S&S WORKING MOTHERS WHO PUT IN A FEW DAYS EACH WEEK AT HOME SAYS THAT THE ARRANGEMENT HAS WORKED WELL FOR HER SHE PRAISES HER BOSS AS VERY FLEXIBLE VERY ACCOMMODATING MS SWERDLOW CONCEDES THAT SHE MAY HAVE BEEN MISCAST AS A SALARIED EMPLOYEE HER FATHER FREQUENTLY TOLD HIS CHILDREN THAT SETTING UP THEIR OWN BUSINESSES WAS THE ONLY WAY TO GO SHE SAYS AND TWO OF HER THREE BROTHERS FOLLOWED HIS ADVICE SHE SAYS SHE HAS ALWAYS HAD AN ENTREPRENEURIAL STREAK EVEN IN HER FIRST JOB OUT OF COLLEGE AT A BANK SHE DID FREELANCE PUBLICRELATIONS JOBS ON THE SIDE SHE ONCE HANDLED A BEAUTYSALON ACCOUNT IN RETURN FOR NAIL MANICURES AT S&S SHE FOCUSED ON HIGHTECHNOLOGY FIRMS SHE SAYS SHE BROUGHT IN SO MANY NEW CLIENTS THAT SHE MADE TWICE AS MUCH IN COMMISSIONS AS IN SALARY SHE WENT TO GREAT LENGTHS TO KNOW OUR PRODUCTS SAYS TONY CAINE GENERAL MANAGER OF SOFTWARE MAKER ZYLAB CORP ONE OF THE S&S CLIENTS THAT SIGNED UP WITH MS SWERDLOW'S NEW FIRM MS SWERDLOW AND HER HUSBAND BRIAN HAD ONLY 10000 IN THE BANK WHEN SHE DECIDED TO MAKE HER BREAK WITH S&S BUT SHE DID HAVE A ROOMY BASEMENT AND A COUPLE OF INTANGIBLE ASSETS HER HUSBAND'S FINANCIAL EXPERTISE AS A FORMER STOCKBROKER AND CURRENCY TRADER AND HER BROTHER'S COMPUTER SKILLS SO MR SWERDLOW BECAME EBS'S CHIEF FINANCIAL OFFICER SPARING THE COMPANY THE FINANCIAL STRAITS THAT PLAGUE MOST STARTUPS MS SWERDLOW SAYS AND HER BROTHER HELPED THE COUPLE SET UP A HIGHLY COMPUTERIZED UNDERGROUND OFFICE AT A NOMINAL FEE MS SWERDLOW SAYS SHE AIMS FOR ANNUAL REVENUE OF 1 MILLION WITHIN TWO AND ONEHALF YEARS NEARLY TRIPLE THE CURRENT FIGURE THAT WOULD STILL BE A FAR CRY FROM THE 4 MILLLION IN ANNUAL REVENUE THAT S&S SAYS IT BOOKS BUT MS SWERDLOW DOESN'T MIND AFTER ALL SHE HAS ACHIEVED HER MAIN GOAL SETTING HER OWN WORK SCHEDULE EVEN AFTER HER FIRM MOVES INTO SEPARATE QUARTERS LATER THIS YEAR SHE SAYS SHE WILL DO WHAT SHE ORIGINALLY PLANNED TO DO AT S&S STAY HOME THREE DAYS A WEEK TO BE WITH HER 18MONTH OLD SON KYLE AND ANY OF HIS FUTURE SIBLINGS SHE IS CURRENTLY PREGNANT AND PLANS TO HAVE FOUR CHILDREN ALTOGETHER AND SHE SAYS I NEVER FEEL STRESSED 9401100148 940110 LETTERS TO THE EDITOR EVERYBODY WAS THERE BUT FAULKNER DONALD KARTIGANER HOWRY PROFESSOR OF FAULKNER STUDIES AT THE UNIVERSITY OF MISSISSIPPI WAS CORRECT IN SUSPECTING WILLIAM FAULKNER WOULD LEAVE TOWN IN RESPONSE TO FAULKNERMANIA IN OLE MISS THE 20 YEARS' OF CONFERENCES HELD IN OXFORD MISS AS DESCRIBED IN BARBARA ENSRUD'S DEC 29 LEISURE & ARTS PIECE FAULKNER MOST LIKELY WOULD BE LESS THAN ENTHUSIASTIC ABOUT 300 FAULKNER CULTISTS TAKING A WEEK FROM THEIR LIVES TO DISSECT HIM I SAY THIS BECAUSE MORE THAN 50 YEARS AGO ON APRIL 26 1939 I WAS PARTY TO OR VICTIM OF SUCH A HAPPENING AS A STUDENT AT OLE MISS WORKING AS A STRINGER FOR THE COMMERCIAL APPEAL MEMPHIS I ACHIEVED BRIEFLY A MILD DEGREE OF PROMINENCE AS ONE OF THE FEW AT OLE MISS TO WHOM FAULKNER WOULD TALK HAVING BEEN FIRED TWICE FROM THE UNIVERSITY ONCE AS BOILER TENDER/STOKER AND NEXT AS POSTMASTER BECAUSE OF CAMPUSGENERATED COMPLAINTS FAULKNER DIDN'T TAKE KINDLY TO CAMPUS GOINGSON IN LATER YEARS THERE WAS SOMEWHAT OF A DETENTE BETWEEN THE TWO AS THE RESULT OF A MISUNDERSTANDING I HAD THE OPPORTUNITY TO INTERVIEW FAULKNER IN THE FALL OF 1938 ON HIS RETURN TO ROWAN OAKS FOLLOWING HIS SEVERAL YEARS AS A HOLLYWOOD SCREENWRITER IT WAS FAULKNER'S FIRST INTERVIEW IN A NUMBER OF YEARS I GOT WORD FROM A FAULKNER FAMILY MEMBER THAT MY ARTICLE HAD CAUSED HIM NO ANGUISH ABOUT THAT TIME THE ENGLISH DEPARTMENT AT OLE MISS WAS PLANNING A SPRING LITERARY FESTIVAL THAT WOULD BRING TOGETHER SOME OF THE STATE'S BETTERKNOWN AUTHORS FAULKNER'S PARTICIPATION WAS CONSIDERED AN IMPOSSIBLE DREAM UNWORTHY OF EVEN DISCUSSING NONETHELESS I OFFERED TO EXTEND HIM AN INVITATION I WROTE TO HIM A COUPLE OF WEEKS PASSED WITHOUT RESPONSE THEN I CALLED SEVERAL TIMES AND WAS ASSURED BY A WOMAN THERE PERHAPS HIS HOUSEKEEPER THAT MY MESSAGE HAD BEEN DELIVERED ABOUT A MONTH LATER AND SIX WEEKS OR SO BEFORE THE EVENT I RECEIVED A LATENIGHT CALL FROM FAULKNER HIMSELF HE WOULD ATTEND AN AFTERNOON DISCUSSION SESSION HE WOULD NEITHER DELIVER A SPEECH NOR BE PART OF A PANEL DISCUSSION BUT HE WOULD BE IN THE AUDIENCE AND DEPENDING ON WHAT THE PANELISTS SAID HE MIGHT HAVE A COMMENT BUT THAT WAS NOT A PROMISE THE PROSPECT OF FAULKNER'S ATTENDANCE IMMEDIATELY HYPED INTEREST IN WHAT WAS TO HAVE BEEN SIMPLY ANOTHER CAMPUS ACADEMIC TALKFEST LITERATI FROM ACROSS THE STATE INQUIRED ABOUT TICKETS ORIGINALLY SCHEDULED FOR AN AUDITORIUM IN THE GRADUATE SCHOOL BUILDING THE EVENT WAS MOVED TO THE MUCH LARGER FULTON CHAPEL THE BIG DAY FINALLY ARRIVED THE TWOCOLUMN HEADLINE ON MY MORNINGAFTER ARTICLE IN THE COMMERCIAL APPEAL SAID IT ALL FAULKNER WHO WASN'T THERE TAKES SPOTLIGHT AT FESTIVAL IN THOSE DAYS THE LATE '30S WHEN JOURNALISM WAS GENTLER AND KINDER THAN TODAY I REFRAINED FROM REPORTING THAT HE FAILED TO SHOW FOR THE VERY SIMPLE REASON HE WAS OFF ON ONE OF HIS TOOTS AND SIMPLY FORGOT ALL ABOUT THE DATE 9401100147 940110 SAVANNAH GA IS VOTED VALUJET'S NEXT DESTINATION ATLANTA IT'S WITHIN 400 MILES OF ATLANTA AND IT HAS A COMMERCIAL AIRPORT FOR THOSE REASONS AND BECAUSE IT GOT MORE VOTES FROM ATLANTANS THAN ANY OTHER ELIGIBLE CITY SAVANNAH GA WILL BE THE NEXT DESTINATION SERVED BY VALUJET AIRLINES THE STARTUP SHORTHAUL CARRIER HAD PUT THE CHOICE OF ITS 12TH DESTINATION UP FOR POPULAR VOTE BY ATLANTANS AS LONG AS THE HIGHEST VOTEGETTER WAS WITHIN 400 MILES OF VALUJET'S ATLANTA HEADQUARTERS ABOUT HALF THE 7500 ENTRIES WERE FOR CITIES WELL BEYOND THE 400MILE LIMIT THE FLIGHTS TO SAVANNAH BEGIN FEB 17 9401100146 940110 WHO'S NEWS AMGEN INC AMGEN INC THOUSAND OAKS CALIF LOWELL E SEARS SENIOR VICE PRESIDENT OF ASIAPACIFIC OPERATIONS AND ACTING CHIEF FINANCIAL OFFICER OF THIS DEVELOPER OF BIOLOGICAL PRODUCTS RESIGNED EFFECTIVE MARCH 31 MR SEARS 42 YEARS OLD WILL BE SUCCEEDED IN THE ASIAPACIFIC POST BY DARYL HILL 48 MR SEARS WHO HAD BEEN CHIEF FINANCIAL OFFICER FROM 1988 TO 1992 BEFORE BEING NAMED TO HEAD AMGEN'S ASIAPACIFIC BUSINESS SAID HE RESIGNED BECAUSE HE WAS INTERESTED IN GREATER RESPONSIBILITIES THAT WEREN'T AVAILABLE GIVEN AMGEN'S MANAGEMENT STRUCTURE AND COMPOSITION AMGEN EXPECTS TO NAME A NEW CHIEF FINANCIAL OFFICER IN THE NEXT FEW MONTHS 9401100145 940110 WHO'S NEWS ROLLWAGEN FORMERLY OF CRAY RESEARCH TO LEAD SMALL PLASMA TECHNOLOGY FIRM BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL CHATSWORTH CALIF FORMER CRAY RESEARCH INC CHAIRMAN JOHN A ROLLWAGEN WHO WITHDREW HIS NOMINATION AS DEPUTY SECRETARY OF COMMERCE LAST SPRING AMID A GOVERNMENT PROBE WAS NAMED CHAIRMAN OF PLASMA & MATERIALS TECHNOLOGIES INC A SMALL CLOSELY HELD COMPANY MR ROLLWAGEN WHO WAS CHAIRMAN AND CHIEF EXECUTIVE OF CRAY RESEARCH FROM 1981 UNTIL JANUARY 1993 SAID HE CONSIDERED MANY OPTIONS BEFORE SETTLING ON PMT WHEN I SHOWED UP AT PMT I WAS FLOORED SAID THE 53YEAROLD EXECUTIVE IT FELT LIKE CRAY IN THE MIDDLE 1970S HE SAID NOTING THAT PMT'S ENTREPRENEURIAL CULTURE SEEMED FAMILIAR MR ROLLWAGEN SUCCEEDS ROBERT W CONN WHO LEFT THE COMPANY TO BECOME DEAN OF ENGINEERING FOR THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO SHORTLY AFTER MR ROLLWAGEN LEFT CRAY RESEARCH PRESIDENT CLINTON NOMINATED HIM AS DEPUTY SECRETARY OF COMMERCE BUT THE EXECUTIVE WITHDREW IN MAY AFTER SERVING FIVE MONTHS AS ACTING DEPUTY SECRETARY AMID A SECURITIES AND EXCHANGE COMMISSION PROBE INTO INSIDER TRADING IN THE STOCK OF CRAY COMPUTER CORP A COLORADO SPRINGS COLO SPINOFF OF CRAY RESEARCH A SUPERCOMPUTER MAKER PEOPLE FAMILIAR WITH THE INVESTIGATION SAID AT THE TIME THAT MR ROLLWAGEN WAS AMONG THE TARGETS OF THE SEC INVESTIGATION MR ROLLWAGEN'S ATTORNEY SAID THEN THAT HIS CLIENT HADN'T DONE ANYTHING WRONG MR ROLLWAGEN SAID ON FRIDAY THAT HIS PART IN THE INVESTIGATION IS OVER BUT HE DECLINED TO GIVE ANY DETAILS OR TO SAY WHETHER HE HAD BEEN A TARGET OF THE SEC PROBE IN HIS WITHDRAWAL LETTER LAST MAY MR ROLLWAGEN SAID HIS DECISION WASN'T PROMPTED BY THE SEC INVESTIGATION BUT SAID THE DELAY CAUSED BY THE INVESTIGATION GAVE HIM TIME TO DECIDE THAT HE WOULD BE MORE EFFECTIVE OUTSIDE THE BUREAUCRACY OF THE COMMERCE DEPARTMENT I DO BELIEVE THAT I CAN MAKE A STRONGER CONTRIBUTION TO THE COUNTRY AND THE ECONOMY BY OPERATING DIRECTLY IN THE BUSINESS ENVIRONMENT RATHER THAN IN GOVERNMENT MR ROLLWAGEN SAID FRIDAY THE EXECUTIVE WILL NOT HAVE AN OPERATIONAL ROLE AT THE COMPANY THE COMPANY DECLINED TO RELEASE ANY DETAILS OF MR ROLLWAGEN'S COMPENSATION BUT ATTRACTING HIM SEEMS TO BE PART OF ITS PLAN TO GO PUBLIC AN EVENT THAT COULD HAPPEN LATER THIS YEAR ACCORDING TO A SPOKESMAN PLASMA AND MATERIALS TECHNOLOGY IS BACKED BY VENTURE CAPITAL AND DESIGNS DEVELOPS MAKES AND SELLS ADVANCED PLASMA PROCESSING EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY 9401100144 940110 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON JA REXRODE 59 YEARS OLD WAS NAMED PRESIDENT OF TENNECO GAS MARKETING CO FOLLOWING REORGANIZATION OF TENNECO GAS'S MARKETING UNIT MR REXRODE WAS PRESIDENT OF SHELL GAS TRADING CO DAVID A DOCTOR 42 FORMER PRESIDENT OF TENNECO GAS MARKETING WAS NAMED PRESIDENT OF TENNECO ENERGY RESOURCES AN UMBRELLA ORGANIZATION THAT INCLUDES TENNECO GAS MARKETING RANDY THOMPSON 35 WAS NAMED VICE PRESIDENT STRATEGIC PLANNING AT TENNECO GAS MR THOMPSON HAD BEEN A MANAGER AT ARCO OIL & GAS A UNIT OF ATLANTIC RICHFIELD CO 9401100143 940110 INTERNATIONAL SHORT BROTHERS TO CUT 429 JOBS BELFAST NORTHERN IRELAND AEROSPACE COMPANY SHORT BROTHERS PLC NORTHERN IRELAND'S LARGEST MANUFACTURING EMPLOYER SAID IT WOULD ELIMINATE 429 JOBS OVER THE NEXT THREE MONTHS THE CUTS WILL LEAVE THE PAYROLL AT 9700 AS SHORT BROTHERS RESPONDS TO A DECLINE IN COMMERCIAL AIRCRAFT ORDERS AND A REDUCTION IN DEFENSE SPENDING THE COMPANY SAID IT HOPES TO ACHIEVE MOST OF THE JOB CUTS THROUGH VOLUNTARY RETIREMENTS AND REASSIGNMENTS OF WORKERS TO OTHER JOBS 9401100142 940110 MARKETING & MEDIA NINTENDOLIFE FITNESS PACT REDMOND WASH NINTENDO OF AMERICA INC AND LIFE FITNESS INC AGREED TO DEVELOP A STATIONARY LIFECYCLE BICYCLE THAT COMES EQUIPPED WITH A NINTENDO VIDEO GAME THE MACHINES WILL ALLOW PEOPLE TO PLAY VIDEO GAMES WHILE THEY CYCLE THE MACHINE WILL BE INTRODUCED AT THE CONSUMER ELECTRONICS SHOW IN JUNE IN CHICAGO NINTENDO A GAME MAKER IS A UNIT OF JAPANESEOWNED NINTENDO LIFE FITNESS IS A GENERAL PARTNERSHIP BASED IN FRANKLIN PARK ILL 9401100141 940110 RITE AID DRUGSTORE CHAIN PLANS TO SELL FOUR UNITS TAKE A 91 MILLION CHARGE BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL RITE AID CORP PLANS TO SELL FOUR NONCORE BUSINESSES BUY BACK 25 OF ITS COMMON SHARES AND CLOSE 200 UNDERPERFORMING DRUGSTORES RESULTING IN A 91 MILLION CHARGE ALTHOUGH RITE AID HAS BEEN PROFITABLE EARNINGS IN RECENT QUARTERS HAVE SLIPPED AND THE COMPANY'S SHARE PRICE HAS BEEN FLAGGING THE PHARMACY INDUSTRY HAS COME UNDER PRESSURE FROM A RISE IN PRESCRIPTIONDRUG INSURANCE PLANS THAT USE THEIR CLOUT TO GET DISCOUNTS AND INCREASED COMPETITION FROM RETAILERS SUCH AS SUPERMARKETS SELLING HEALTH AND BEAUTY PRODUCTS WE DECIDED TO FOCUS ON THE CORE DRUGSTORE BUSINESS WHICH ACCOUNTS FOR OVER 90 OF OUR SALES AND PROFITS SAID MARTIN GRASS PRESIDENT OF THE CAMP HILL PA COMPANY THE BIG FUTURE FOR US IS MOVING INTO THE MANAGEDCARE END OF THE PHARMACY BUSINESS ANALYSTS GENERALLY PRAISED THE MOVES THEY'RE BIG THEY'RE PROFITABLE AND THEY HAVE A GOOD BALANCE SHEET SAID JOSEPH RONNING A RETAIL ANALYST WITH BROWN BROTHERS HARRIMAN & CO RITE AID REPORTED FISCAL 1993 SALES OF 41 BILLION RANKING IT AMONG THE TOP FOUR DRUGSTORE RETAILERS IN THE COUNTRY THE RITE AID RESTRUCTURING SOUNDS LIKE PRUDENT BALANCESHEET HOUSEKEEPING SAID FRANK A NEWMAN PRESIDENT OF COMPETITOR ECKERD CORP A DRUGSTORE CHAIN BASED IN CLEARWATER FLA RITE AID SHARES ROSE 150 ON THE NEWS CLOSING AT 18625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY BUT DOWN FROM A HIGH OF 2150 A YEAR AGO AS PART OF THE RESTRUCTURING RITE AID SAID IT WOULD SELL ADAP AN AUTOPARTS RETAILER WITH 95 STORES ENCORE BOOKS WHICH OPERATES 103 STORES CONCORD CUSTOM CLEANERS WITH 170 OUTLETS AND SERA TEC BIOLOGICALS WITH 33 PLASMACOLLECTION CENTERS MR GRASS SAID RITE AID EXPECTS TO FETCH ABOUT 125 MILLION FROM THE SALE OF THE NONCORE BUSINESSES WHICH ALL ARE PROFITABLE EXCEPT FOR ENCORE BOOKS AND HOPES TO DISPOSE OF THEM WITHIN SIX MONTHS THE COMPANY WILL TAKE AN AFTERTAX RESERVE OF 256 MILLION FOR THE FISCAL FOURTH QUARTER ENDING FEB 28 FOR THE LOSS ON THE DISPOSAL OF THE DISCONTINUED OPERATIONS IN ADDITION RITE AID SAID IT WILL CLOSE 200 UNDERPERFORMING DRUGSTORES IN VARIOUS LOCATIONS THAT HAVEN'T BEEN DISCLOSED THROUGHOUT THE 23 STATES WHERE RITE AID OPERATES THE COMPANY WITH A TOTAL OF ABOUT 2700 DRUGSTORES WILL TAKE THE 91 MILLION CHARGE IN THE FOURTH QUARTER BOTH THE RESERVE AND THE CHARGE WILL RESULT IN AN UNSPECIFIED NET LOSS FOR THE QUARTER THE COMPANY ALSO SAID IT PLANS TO BEGIN TODAY A SOCALLED DUTCH AUCTION FOR AS MANY AS 22 MILLION OR 25 OF ITS SHARES OUTSTANDING UNDER A DUTCH AUCTION A COMPANY STATES THE NUMBER OF SHARES IT WILL BUY DURING A STIPULATED PERIOD BUT DOESN'T SET A SINGLE PURCHASE PRICE INSTEAD A RANGE OF PRICES IS GIVEN THE HIGHEST PRICE WITHIN THAT RANGE NECESSARY TO ACQUIRE ALL THE SHARES DESIRED BECOMES THE PURCHASE PRICE FOR ALL THE SHARES IN THIS CASE RITE AID SET A RANGE OF BETWEEN 16 A SHARE AND 1850 A SHARE MR GRASS SAID HE EXPECTS THAT ELIMINATING THE UNDERPERFORMING STORES WILL ADD 18 CENTS A SHARE TO FISCAL 1995 EARNINGS WHILE THE STOCK BUYBACK HAS A POTENTIAL TO ADD 25 CENTS A SHARE FOLLOWING THE RESTRUCTURING ANNOUNCEMENT STANDARD & POOR'S CORP SAID IT PLACED THE RATINGS OF ABOUT 886 MILLION OF RITE AID DEBT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS 9401100139 940110 INTERNATIONAL WASHINGTON INSIGHT US IS HOPING TO BLEND ENVIRONMENTAL WORLD TRADE ISSUES AT MOROCCO MEETING BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON APRIL 15 TRADE MINISTERS FROM AROUND THE WORLD WILL GATHER IN MARRAKECH MOROCCO TO SIGN A WORLD TRADE PACT IF THE US HAS ITS WAY THEY'LL CREATE A WORLD ENVIRONMENTAL ORGANIZATION TOO US MOTIVES ARE SIMPLE CREATING AN INTERNATIONAL COMMITTEE ON TRADE AND THE ENVIRONMENT WOULD EASE THE TRADE PACT'S PASSAGE BY CALMING CONCERNS IN CONGRESS THAT IT WOULD UNDERMINE US ENVIRONMENTAL LAWS BUT THE POLITICS ARE COMPLEX AND IT'S FAR FROM CLEAR WHETHER THE ORGANIZATION WILL BE LAUNCHED AND WHETHER IT WOULD ACCOMPLISH ANYTHING USEFUL TRADE OFFICIALS AND ENVIRONMENTALISTS VIEW EACH OTHER ROUGHLY AS ANTICHRISTS ENVIRONMENTALISTS ACCUSE TRADE TYPES OF TRYING TO CRIPPLE POLLUTION AND CONSERVATION LAWS TRADE OFFICIALS DISMISS ENVIROMENTALISTS AS PROTECTIONISTS AND POOR NATIONS DISTRUST BOTH TRADE AND ENVIRONMENTAL OFFICIALS FROM RICH NATIONS AS CLOSETCOLONIALISTS THE US SHOULDN'T TRY TO DECIDE WHAT ARE THE BEST STANDARDS FOR OTHERS TO FOLLOW SAYS BK ZUTSHI INDIA'S DELEGATE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA SOMETIMES IT IS HARD TO SORT OUT LEGITIMATE ENVIRONMENTAL MEASURES FROM PROTECTIONIST ONES WHEN THAILAND BLOCKED TOBACCO IMPORTS IT CLAIMED IT WAS PROTECTING THE HEALTH OF THAIS BUT IT PERMITTED A STATEOWNED COMPANY TO KEEP CHURNING OUT CIGARETTES ANYWAY AFTER A GATT ARBITRATION PANEL RULED IN 1990 THAT THE IMPORT RESTRICTIONS WERE IMPROPER THAILAND DROPPED THEM ALTHOUGH US CIGARETTE MAKERS SAY THAILAND NOW USES IMPORT TAXES TO KEEP THEM OUT OF THE MARKET NOW A GATT PANEL IS LOOKING AT WHETHER US FUELEFFICIENCY STANDARDS SHOULD BE OVERTURNED BECAUSE THEY PUT EUROPEAN CAR MAKERS SUCH AS VOLVO AND BMW WHICH MAKE HEAVIER LOW GASMILEAGE CARS AT A DISADVANTAGE DANIEL ESTY A SPECIALIST ON TRADE AND ENVIRONMENTAL ISSUES AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAYS THE CASE IS A CLOSE CALL BECAUSE THE US COULD HAVE REDUCED GASOLINE CONSUMPTION SIMPLY BY RAISING GAS TAXES THAT WOULD HAVE HINDERED EUROPEAN IMPORTS LESS THAN THE FUELEFFICIENCY RULES NEVERTHELESS HE SAYS ENVIRONMENTALISTS WILL CONSIDER GATT HOPELESS IF IT RULES IN FAVOR OF THE EUROPEANS LAST MONTH THE US AND 116 OTHER NATIONS NEGOTIATED A GATT DEAL THAT STRENGTHENED THE POWER OF GATT PANELS TO DECIDE SUCH ISSUES CURRENTLY THE LOSING PARTY IN A GATT DISPUTE CAN BLOCK THE DECISION FROM TAKING EFFECT UNDER NEW GATT RULES THE LOSER HAS NO VETO THE US TRIED TO MAKE GATT MORE ENVIRONMENTALLY FRIENDLY BY SETTING UP A PERMANENT COMMITTEE TO EXAMINE WHETHER TRADE RULES SHOULD BE CHANGED TO ACCOMMODATE ENVIRONMENTAL OBJECTIVES BUT INDIA BRAZIL AND OTHER DEVELOPING COUNTRIES BLOCKED THE US PROPOSAL US TRADE REPRESENTATIVE MICKEY KANTOR SAYS HE IS CONFIDENT AN AGREEMENT WILL BE REACHED IN MARRAKECH AND BRAZIL SAYS IT HAS DROPPED ITS OBJECTIONS THE US WANTS THE COMMITTEE TO HAVE A BROAD AGENDA THE COMMITTEE WOULD ASSURE THAT TRADE LAWS DON'T IMPINGE ON ENVIRONMENTAL TREATIES GOVERNING OZONEDEPLETING CHEMICALS AND ENDANGERED SPECIES AND THE COMMITTEE WOULD TRY TO RESOLVE HOW NATIONS COULD USE DOMESTIC LAWS TO REGULATE THE WAY GOODS ARE PRODUCED ABROAD FOR INSTANCE ENVIRONMENTALISTS IN THE US AND EUROPE WANT TO BAR IMPORTS OF TROPICAL WOOD UNLESS LOGGING IS CONDUCTED IN A WAY THAT PRESERVES THE RAIN FORESTS MALAYSIA AND OTHERS SEE THAT AS INFRINGING ON THEIR SOVEREIGNTY INTERNATIONAL AGREEMENT ON ENVIRONMENTAL STANDARDS IS CRITICAL SAYS MR KANTOR BECAUSE US COMPANIES MUST COMPLY WITH TOUGH POLLUTION LAWS ADDING TO THEIR EXPENSES FOR THEM TO REMAIN COMPETITIVE OTHERS MUST MEET THESE STANDARDS TOO HE SAYS STILL EVEN IF THE US PERSUADES GATT PARTIES TO CREATE AN ENVIRONMENTAL COMMITTEE ITS POWERS WILL BE SHARPLY CIRCUMSCRIBED UNLIKE THE ENVIRONMENTAL COMMISSION CREATED AS PART OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE PROPOSED GATT COMMITTEE WOULDN'T BE AUTHORIZED TO INVESTIGATE ENVIRONMENTAL WRONGDOING IN INDIVIDUAL COUNTRIES NOR COULD IT LEVY FINES AN ENVIRONMENTAL COMMITTEE DOESN'T REALLY DO ANYTHING COMPLAINS LARRY WILLIAMS DIRECTOR OF INTERNATIONAL PROGRAMS AT THE SIERRA CLUB WHICH OPPOSES NAFTA AND GATT HE NOTES THAT GATT SET UP A WORKING GROUP ON ENVIRONMENTAL ISSUES IN 1971 IT DIDN'T MEET FOR 20 YEARS AND WHEN IT FINALLY DID IT DIDN'T DO ANYTHING OF NOTE BUT RODRIGO PRUDENCIO A TRADE ANALYST AT THE NATIONAL WILDLIFE FEDERATION SAYS THAT CREATING A PERMANENT COMMITTEE WOULD REPRESENT A COMMITMENT BY NATIONS TO LOOK AT THE ENVIRONMENTAL EFFECTS OF TRADE IT WOULD SHOW THE DEBATE IS MOVING IN THE RIGHT DIRECTION HE SAYS AND THAT MIGHT BE ENOUGH TO CONVINCE HIS ENVIRONMENTAL GROUP AND OTHERS THAT BACKED NAFTA TO BACK GATT AS WELL 9401100137 940110 AUSTRALIA INDUSTRY SETS SIGHT ON SELLING MORE WINE ABROAD BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY LESS WINE IS FLOWING ON AUSTRALIAN TABLES THESE DAYS AND THAT'S FORCING AUSTRALIA'S GRAPE GROWERS TO SET THEIR SIGHTS OVERSEAS BY THE TURN OF THE CENTURY THE INDUSTRY PLANS TO BE EXPORTING ONE BILLION AUSTRALIAN DOLLARS US6856 MILLION OF WINE ANNUALLY ABOUT THREE TIMES WHAT IT EXPORTS CURRENTLY TO REACH THAT GOAL IT MAPPED A FIVEYEAR PLAN THAT TARGETS FIVE POTENTIAL MARKETS BRITAIN SWEDEN CONTINENTAL EUROPE JAPAN AND NORTH AMERICA PARTICULARLY THE US AUSTRALIAN WINES ACCOUNT FOR LESS THAN 2 OF WORLD WINE EXPORTS ACCORDING TO A WINEINDUSTRY SPOKESMAN AUSTRALIA EXPORTED ITS FIRST SHIPMENT OF WINE MORE THAN A CENTURY AGO AND ALMOST ALL OF IT WENT TO ITS FORMER MOTHER COUNTRY BRITAIN BUT THE EXPORT EFFORT REALLY GOT SERIOUS ONLY A FEW YEARS AGO AFTER THE DOMESTIC MARKET LOST ITS EFFERVESCENCE HAVING CAPTURED 98 OF LOCAL WINE SALES DOMESTIC PRODUCERS FACED A SATURATED MARKET THEN CONSUMPTION WANED IN 1985 AUSTRALIANS DRANK AN AVERAGE OF 216 LITERS EACH LAST YEAR THE AVERAGE FELL TO JUST 182 LITERS THE INDUSTRY BLAMES HIGHER TAXES AND THE RECESSION OF THE LATE 1980S AMONG OTHER FACTORS LAST YEAR AUSTRALIA EXPORTED 103 MILLION LITERS OF WINE VALUED AT A289 MILLION US1981 MILLION THAT'S UP FROM JUST 87 MILLION LITERS VALUED AT A17 MILLION IN 1985 WHITE WINES OUTSELL REDS NEARLY 2 TO 1 BRITAIN REMAINS AUSTRALIA'S BIGGEST OVERSEAS MARKET FOLLOWED BY NEW ZEALAND SWEDEN THE US AND CANADA IT IS IN BRITAIN A NATION OF DISCERNING WINE DRINKERS WITH ACCESS TO A HUGE VARIETY OF EUROPEAN VINTAGES THAT THE AUSTRALIAN INDUSTRY CONSIDERS IT HAS HAD ITS BIGGEST SUCCESS IT'S A GREAT LITMUS TEST FOR WINE THE INDUSTRY SPOKESMAN SAYS OF THE BRITISH MARKET WHERE AUSTRALIAN WINES HAVE CAPTURED A 5 TO 6 SHARE IN THE US AUSTRALIAN WINE SALES HAVE PIGGYBACKED ON WHAT THE INDUSTRY SPOKESMAN CALLS A DEGREE OF THE CROCODILE DUNDEE' SYNDROME BUT THE REAL SELLING POINT HE SAYS IS THE GOOD VALUE THAT AUSTRALIAN WINES REPRESENT IN THE A7 TO A12 PRICE RANGE WHERE AUSTRALIAN WINE PRODUCERS REALLY HAVE THEIR WORK CUT OUT IS IN JAPAN THERE ANNUAL CONSUMPTION AVERAGES A PALTRY ONE LITER PER PERSON AND EXPORTS FROM AUSTRALIA TOTAL JUST TWO MILLION LITERS A YEAR STILL IT'S RIPE FOR THE PICKING SAYS THE INDUSTRY SPOKESMAN WHAT AUSTRALIA HAS TO DO IS CREATE AN IMAGE WHERE IT DOESN'T REALLY HAVE MUCH OF ONE MOREOVER AUSTRALIAN WINES SUFFERED WHEN THEY WERE CONFUSED WITH THOSE FROM AUSTRIA SEVERAL YEARS AGO WHEN THAT COUNTRY'S INDUSTRY WAS EMBROILED IN A SCANDAL OVER TAINTED WINE HOPEFULLY WE'VE BEEN ABLE TO RECOVER FROM THAT THE SPOKESMAN ADDS 9401100136 940110 FINANCING BUSINESS ADELPHIA COMMUNICATIONS CORP ADELPHIA COMMUNICATIONS CORP COUDERSPORT PA SAID ITS REGISTRATION STATEMENT COVERING 8832604 SHARES OF CLASS A COMMON STOCK WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION AND ALL THE SHARES HAVE BEEN SOLD THE COMPANY WHICH OWNS OR MANAGES CABLETELEVISION SYSTEMS IN 11 STATES SAID THREE MILLION OF THE NEW SHARES WERE OFFERED TO THE PUBLIC AND WERE PURCHASED MAINLY BY A GROUP OF INSTITUTIONAL INVESTORS PARTNERSHIPS CONTROLLED BY THE FAMILY OF JOHN J RIGAS ADELPHIA'S CHIEF EXECUTIVE OFFICER AND PRESIDENT HAVE AGREED TO BUY THE REMAINING 5832604 SHARES AT THE PUBLIC OFFERING PRICE LESS THE UNDERWRITING DISCOUNT NET PROCEEDS FROM THE SALE WILL BE 151435000 OR 1715 A SHARE THE COMPANY SAID IT WILL USE THE MONEY TO REDEEM ADELPHIA'S 100 MILLION AGGREGATE PRINCIPAL AMOUNT OUTSTANDING 13 SENIOR SUBORDINATED NOTES DUE 1996 AND TO REDUCE EXISTING BANK DEBT 9401100135 940110 FINANCING BUSINESS PROCYTE CORP PROCYTE CORP KIRKLAND WASH SAID IT IS PROCEEDING WITH ITS PROPOSED ISSUE OF 25 MILLION COMMON SHARES THE PROPOSED OFFER WAS DROPPED AFTER THE PHARMACEUTICAL FIRM'S STOCK PLUNGED DEC 13 ON NEWS THAT THE FOOD AND DRUG ADMINISTRATION HAD ORDERED IT TO SUSPEND CLINCIAL TRIALS OF IAMAIN A GEL TO TREAT FOOT ULCERS IN DIABETICS THE TRIAL WAS SUSPENDED BECAUSE SEVEN OF 339 PEOPLE IN THE TEST HAD DIED FROM HEART PROBLEMS AND ANOTHER 21 HAD SUFFERED HEART PROBLEMS DIABETICS HAVE A HIGHER INCIDENCE OF HEART PROBLEMS THAN THE GENERAL POPULATION THE FDA GAVE PROCYTE CLEARANCE TO CONTINUE WITH ITS IAMIN TESTING DEC 16 THE OFFERING WILL BE COMANAGED BY WERTHEIM SCHRODER & CO AND DAIN BOSWORTH INC 9401100134 940110 PROVIDENT BANCORP WOOED FOR MERGER BY SOME BANKS CINCINNATI PROVIDENT BANCORP INC SAID IT HAS BEEN APPROACHED BY SEVERAL BANKS ABOUT A POSSIBLE MERGER HOWEVER THE BANK HOLDING COMPANY SAID IT IS NOT INVOLVED IN ANY MERGER TALKS THERE ARE NO AGREEMENTS OR NEGOTIATIONS CURRENTLY TAKING PLACE IN THIS REGARD THE COMPANY SAID ON FRIDAY PROVIDENT BANCORP SHARES CLOSED AT 33875 A SHARE DOWN 1625 IN TRADING ON THE NASDAQ STOCK MARKET PROVIDENT REPORTED NET INCOME OF 38 MILLION OR 211 A FULLY DILUTED SHARE FOR THE NINE MONTHS ENDING SEPT 30 COMPARED WITH 30 MILLION OR 185 A SHARE ON A PROFORMA BASIS FOR THE COMPARABLE 1992 PERIOD PROVIDENT'S 1992 NINEMONTH FIGURES WERE MADE ON A PRO FORMA BASIS TO REFLECT THE ACQUISITION OF FOUR MUTUAL SAVINGS AND LOANS AND ADJUSTED FOR A 3FOR2 STOCK SPLIT WITH MORE THAN 41 BILLION IN ASSETS PROVIDENT IS CONSIDERED ONE OF OHIO'S STRONGEST REGIONAL BANKSMAKING IT AN ATTRACTIVE TARGET BUT CINCINNATI FINANCIER CARL H LINDNER AND HIS FAMILY CONTROL OVER HALF THE BANK'S OUTSTANDING STOCK AND SOURCES CLOSE TO THE BANK SAY MR LINDNER HAS SHOWN LITTLE INTEREST IN THE PAST IN SELLING 9401100133 940110 WHO'S NEWS BORDEN'S VENTRES RESIGNS FROM COMPANY'S BOARD NEW YORK RJ VENTRES A FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EMBATTLED BORDEN INC RESIGNED FROM THE COMPANY'S BOARD AMID GROWING CRITICISM OF THE STRATEGY HE SET FOR BORDEN PEOPLE CLOSE TO THE BOARD SAID THAT MR VENTRES 69 YEARS OLD HAD FACED INCREASING PRESSURE FROM INSTITUTIONAL SHAREHOLDERS AND DIRECTORS RECENTLY TO END HIS EIGHTYEAR TENURE ON THE BOARD FROM 1986 TO 1991 WHEN HE SERVED AS CHIEF EXECUTIVE OF THIS NOWTROUBLED FOOD AND CHEMICALS CONGLOMERATE MR VENTRES PRESIDED OVER AN AMBITIOUS EFFORT TO EXPAND BORDEN'S PRESENCE IN SIX STRATEGIC AREAS GOBBLING UP MORE THAN 90 COMPANIES FOR AN ESTIMATED 2 BILLION BUT BORDEN LATER STRUGGLED WHEN IT TRIED TO CONSOLIDATE ITS PURCHASES MR VENTRES'S DEPARTURE COMES AT A TURBULENT TIME HIS HANDPICKED SUCCESSOR ANTHONY S D'AMATO WAS FORCED OUT LAST MONTH AFTER THE COMPANY POSTED ANOTHER QUARTER OF POOR EARNINGS LAST WEEK AFTER ATTEMPTS TO SELL THE COMPANY BORDEN UNVEILED A RESTRUCTURING PLAN THAT INCLUDES SELLING ITS STRUGGLING SNACKFOOD UNIT AND REQUIRES A 650 MILLION AFTERTAX CHARGE FOR THE FOURTH QUARTER MR VENTRES WHOSE RESIGNATION WAS EFFECTIVE AS OF DEC 31 COULDN'T BE REACHED FOR COMMENT 9401100131 940110 MARKETING & MEDIA WASSERSTEIN FUND HOLLYWOOD FIGURE AGREE TO BUY IMAX BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP LED BY HOLLYWOOD SPECIALEFFECTS WIZARD DOUGLAS TRUMBULL AND A FUND ASSOCIATED WITH WASSERSTEIN PERELLA & CO AGREED TO ACQUIRE CLOSELY HELD IMAX CORP THE PIONEER OF GIANTSCREEN FILM TECHNOLOGY AND OPERATOR OF THEATERS AT MUSEUMS AND SCIENCE CENTERS TERMS WEREN'T DISCLOSED BUT PEOPLE FAMILIAR WITH THE DEAL SAID THE INVESTORS SIGNED A SHAREPURCHASE AGREEMENT TOTALING MORE THAN 100 MILLION THE CURRENT IMAX EXECUTIVES WHO ARE ALSO ITS FOUNDERS AND MAJORITY SHAREHOLDERS WILL STAY ON AS CONSULTANTS AND MINORITY INVESTORS THE GROUP SAID IMAX'S NEW OWNERS SAID THEY HOPE TO MAKE IMAX THE PREEMINENT COMPANY WORLDWIDE PROVIDING THE MOST TECHNOLOGICALLY SOPHISTICATED AND ENTERTAINING OUTOFHOME ATTRACTIONS THEY SEE A BIG MARKET FOR HIGHTECHNOLOGY ENTERTAINMENT CENTERS ARENAS THAT MAY INCLUDE AN IMAX THEATER A MOTIONSIMULATED RIDE AND OTHER INTERACTIVE AND VIRTUALREALITY ATTRACTIONS MR TRUMBULL'S MOTIONSIMULATOR COMPANY WHICH CREATED BACK TO THE FUTURE THE RIDE FOR THE UNIVERSAL STUDIOS THEME PARKS WILL BECOME PART OF IMAX THE MOVE CERTAINLY WILL INTENSIFY THE BATTLE AMONG THE FEW COMPANIES INVOLVED IN CREATING SUCH ATTRACTIONS INCLUDING IWERKS ENTERTAINMENT AND SHOWSCAN CORP BOTH OF THOSE COMPANIES HAVE BEEN SHOWING OFF NEW RIDES AND HAVE PLANS TO PUT ENTERTAINMENT CENTERS IN PLACES LIKE SHOPPING MALLS AND CASINOS CURRENTLY THE 100 IMAX THEATERS IN 19 COUNTRIES ARE IN MUSEUMS AND SCIENCE CENTERS MR TRUMBULL THE DESIGNER OF EFFECTS IN MOVIES LIKE BLADE RUNNER AND 2001 A SPACE ODYSSEY CRITICIZED HOLLYWOOD FOR FOCUSING TOO MUCH ON HOW ENTERTAINMENT IN THE HOME MAY CHANGE IN THE SOCALLED 500CHANNEL UNIVERSE OF THE FUTURE NO ONE'S ASKED THE QUESTION WHAT HAPPENS TO OUTOFHOME ENTERTAINMENT HE SAID AMONG OTHER THINGS MR TRUMBULL SAID HE HOPES TO LURE TOP HOLLYWOOD TALENT TO HELP MAKE FILMS THAT COULD BE SHOWN AT IMAX'S THEATERS UP TO THIS POINT HE NOTES THERE'S BEEN VERY LITTLE INVOLVEMENT BY TOP DIRECTORS AND STARS IN IMAX FILMS THESE MARKETS ARE GOING TO EXPLODE AS A RESULT OF PEOPLE BEING ABLE TO WATCH THE MOVIE BE IN THE MOVIE RIDE THE MOVIE INTERACT WITH THE MOVIE HE SAID MR TRUMBULL WILL SHARE THE TITLE OF VICE CHAIRMAN OF IMAX WITH RICHARD GELFOND A PRINCIPAL WITH ONE OF THE OTHER INVESTORS CHEVIOT CAPITAL ADVISORS BRADLEY WECHSLER ANOTHER CHEVIOT PRINCIPAL WILL SERVE AS INTERIM CHIEF EXECUTIVE OFFICER UNTIL A PERMANENT CHIEF EXECUTIVE IS FOUND WASSERSTEIN PERELLA PARTNERS'S MERCHANT BANKING FUND PUT UP THE MAJORITY OF MONEY FOR THE TRANSACTION THE NEW OWNERS SAID THEY ARE LOOKING FOR JOINTVENTURE PARTNERS TO HELP WITH THE EXPANSION AND CONFIRMED REPORTS THAT THE GROUP IS STRONGLY CONSIDERING A PUBLIC OFFERING AT SOME POINT 9401100130 940110 THREE STATES COULD LOSE HIGHWAY FUNDS EPA SAYS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SAID THE FEDERAL GOVERNMENT WILL WITHHOLD HIGHWAY FUNDS FROM CALIFORNIA ILLINOIS AND INDIANA IF THOSE STATES DON'T COMPLY WITH CERTAIN AUTOMOBILE EXHAUST RULES BY JUNE 15 ALL THREE STATES FAILED TO MEET A DEADLINE LAST NOV 15 UNDER THE 1990 CLEAN AIR ACT TO ESTABLISH FOR HEAVILY POLLUTED AREAS A SYSTEM OF AUTO EMISSIONSCONTROL INSPECTION IN WHICH CARS ARE INSPECTED AT A SITE SEPARATE FROM WHERE NECESSARY REPAIRS ARE MADE IF THE STATES FAIL TO ACT THE EPA COULD WITHHOLD AS MUCH AS 800 MILLION FROM CALIFORNIA 700 MILLION FROM ILLINOIS AND 280 MILLION FROM INDIANA THE EPA COULD ALSO MOVE TO SEVERELY RESTRICT INDUSTRIAL DEVELOPMENT IN CERTAIN AREAS THE CLINTON ADMINISTRATION IS RELUCTANT TO IMPOSE THE SANCTIONS ESPECIALLY ON FINANCIALLY STRAPPED AND POLITICALLY IMPORTANT CALIFORNIA THE EPA HAS ALREADY DEFERRED ACTION ON CALIFORNIA ONCE WHILE NEGOTIATING WITH STATE OFFICIALS 9401100129 940110 TOBACCO FIRMS TO SHOW DROP IN QUARTERLY NET DOMESTIC PRICE WAR CITED SOME ANALYSTS SEE HELP IN '94 FROM REVAMPING BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE A MODEST MIDQUARTER RISE IN CIGARETTE PRICES THE EFFECTS OF LAST YEAR'S BRUISING DOMESTIC PRICE WAR CONTINUED TO PUMMEL TOBACCO COMPANIES IN THE FOURTHQUARTER ANALYSTS ARE EXPECTING FOURTHQUARTER EARNINGS EXCLUDING NONRECURRING ITEMS TO FALL SIGNIFICANTLY FROM YEARAGO LEVELS ABOUT 30 FOR PHILIP MORRIS COS AND AMERICAN BRANDS INC AND ABOUT 80 FOR RJR NABISCO HOLDINGS CORP BUT AFTER FACING THE HARSH REALITY OF 1993 AND ITS FINAL QUARTER TOBACCO COMPANIES CAN RELISH THE PROSPECT OF IMPROVING FUNDAMENTALS IN 1994 ACCORDING TO SOME ANALYSTS RESTRUCTURING MOVES TAKEN IN 1993 WILL LEAD TO LOWER OPERATING COSTS THIS YEAR AND YEAROVERYEAR EARNINGS WILL APPEAR STRONGER AS RESULTS ARE COMPARED WITH THE WARTORN LATTER HALF OF 1993 THEY NOTED THEY ALSO CONTEND THAT THE PRICE WAR IS OVER AND THAT ITS SOUGHTAFTER SPOIL A SHIFT AWAY FROM LOWMARGIN DISCOUNT CIGARETTES BACK TO PREMIUM BRANDS WILL CONTINUE FURTHERMORE A DIVIDENDINCREASE ANNOUNCEMENT BY PHILIP MORRIS WHICH SHUNNED A BOOST IN 1993 IS EXPECTED AT ITS FEBRUARY BOARD MEETING AND SOME INDUSTRY WATCHERS SAY THE CIGARETTE EXCISE TAX INCREASE PROPOSAL PROBABLY WILL BE LESS DAMAGING THAN FIRST EXPECTED WHAT WILL BE SEEN WHEN TOBACCO COMPANIES REPORT FOURTHQUARTER EARNINGS IN THE NEXT FEW WEEKS ARE DECLINING DOMESTIC TOBACCO SHIPMENT VOLUMES DEVASTATED CIGARETTE PRICES AND EXTENSIVE RESTRUCTURING CHARGES ALL OF WHICH WILL OVERPOWER STRENGTH IN INTERNATIONAL TOBACCO AND FOOD OPERATIONS PHILIP MORRIS FOR EXAMPLE WILL REPORT INTERNATIONAL TOBACCO OPERATING PROFIT THAT IS 15 HIGHER THAN IN THE YEARAGO QUARTER MERRILL LYNCH & CO ANALYST ALLAN KAPLAN SAID OPERATING EARNINGS FOR RJR NABISCO'S FOOD UNIT SHOULD BE UP 13 IN THE QUARTER HE SAID THE CONSENSUS EARNINGS ESTIMATE FOR PHILIP MORRIS IS 93 CENTS A SHARE 27 BELOW EARNINGS OF 133 A YEAR AGO FOR RJR NABISCO THE ESTIMATE IS THREE CENTS A SHARE COMPARED WITH 13 CENTS EARNED FROM OPERATIONS ON A FULLY DILUTED BASIS LAST YEAR AMERICAN BRANDS IS SEEN DROPPING 32 TO 78 CENTS A SHARE FROM LAST YEAR'S 115 ONLY SNUFF AND CHEWINGTOBACCO MAKER UST INC IS EXPECTED TO SHOW EARNINGS GROWTH BASED ON HIGHER PRICES FOR MOIST SMOKELESS TOBACCO AND HIGHER UNIT VOLUMES ANALYSTS SAID CONSENSUS ESTIMATES INDICATE A 14 JUMP TO 41 CENTS A SHARE FROM 36 CENTS THE ESTIMATES WHICH EXCLUDE NONRECURRING ITEMS ARE FROM FIRST CALL A UNIT OF THOMSON FINANCIAL NETWORKS DOMESTIC CIGARETTE SHIPMENTS ARE ESTIMATED TO HAVE FALLEN 8 TO 9 IN THE FOURTHQUARTER BECAUSE OF THE ABSENCE OF THE TRADITIONAL YEAREND BUILDUP OF WHOLESALER INVENTORIES SAID GOLDMAN SACHS & CO ANALYST MARC COHEN HE EXPECTS THAT TREND TO REVERSE IN 1994 WITH SHIPMENTS INCREASING IN LINE WITH CONSUMER DEMAND ON THE ORDER OF 2 IN AN EFFORT TO ADJUST TO LOWER US TOBACCO PROFITS BOTH PHILIP MORRIS AND RJR NABISCO ANNOUNCED HUGE WRITEOFFS IN THE FOURTHQUARTER PHILIP MORRIS WILL TAKE A CHARGE OF 457 MILLION OR ABOUT 108 A SHARE FOR ITS PLAN TO AXE 8 OF ITS WORK FORCE RJR NABISCO SAID IT WILL TAKE A CHARGE OF 445 MILLION OR 32 CENTS A SHARE FOR THE ELIMINATION OF NEARLY 10 OF ITS WORK FORCE AMERICAN BRANDS ANNOUNCED CHARGES RELATED TO THE PRICE WAR IN ITS OCTOBER THIRDQUARTER EARNINGS REPORT DESPITE A PRICE INCREASE IN NOVEMBER PRICES OF PREMIUM AND MIDLEVEL CIGARETTES IN THE FOURTHQUARTER WERE ABOUT 20 TO 30 LOWER THAN YEARAGO LEVELS PRICES FELL AFTER PHILIP MORRIS LAST SPRING SLASHED ITS MARLBORO BRAND BY 40 CENTS A PACK TO DIMINISH THE GROWING POPULARITY OF DISCOUNT CIGARETTES THAT SET OFF A WAR THAT MANY SAY ENDED IN THE FALL AFTER RJR NABISCO INCREASED PRICES BY 4 A MOVE PHILIP MORRIS AND OTHERS FOLLOWED PRICES HAVE REMAINED STEADY AND SOME ANALYSTS EXPECT FURTHER INCREASES AT THE DISCOUNT LEVEL AS EARLY AS THE CURRENT QUARTER SANFORD BERNSTEIN & CO ANALYST GARY BLACK IS BULLISH ON PROSPECTS FOR TOBACCO COMPANIES IN 1994 CITING IN PART DECLINING MARKET SHARE FOR DISCOUNT BRANDS THE OLIGOPOLY WHICH FOR MOST OF THE 1980S AVERAGED 11 ANNUAL PRICE INCREASES IS BACK MR BLACK SAID I THINK IT'S GOING TO BE A VERY GOOD YEAR FROM AN EARNINGS AND PRICING STANDPOINT IN DOMESTIC TOBACCO OTHERS AREN'T AS OPTMISTIC ON THE PRICING FRONT MERRILL LYNCH ANALYST KAPLAN SAID HIS TALKS WITH TOBACCO COMPANY REPRESENTATIVES LEAD HIM TO THINK THE PRICE WAR MIGHT NOT BE OVER SALES CURVES DON'T GO STRAIGHT UP AND DOWN AND PRICE CURVES DON'T GO STRAIGHT UP AND DOWN HE SAID 9401100128 940110 ITALY'S DRASTIC CUTS IN STATE PAYMENTS FOR DRUGS PUTS INDUSTRY IN TIGHT SPOT BY STEPHEN D MOORE AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MAJOR INTERNATIONAL DRUG MAKERS ARE SCRAMBLING TO ASSESS THE EFFECTS OF EUROPE'S LATEST CRACKDOWN ON HEALTHCARE COSTS CUTBACKS IN ITALY'S SYSTEM OF STATEREIMBURSED DRUG PURCHASES THAT ARE AIMED AT SLASHING THE NATIONAL MEDICINE BILL BY A HUGE 30 THIS YEAR ALTHOUGH DEBATED BY POLITICIANS FOR MONTHS THE OVERHAUL OF ITALY'S DRUGREIMBURSEMENT SYSTEM WAS PUSHED THROUGH WITHOUT MUCH FANFARE LATE LAST MONTH MANY ITALIAN PATIENTS VISITING THEIR LOCAL PHARMACIES THIS MONTH HAVE BEEN SURPRISED TO FIND THAT DOZENS OF FORMER OVERTHECOUNTER MEDICINES NOW REQUIRE A DOCTOR'S PRESCRIPTION THE CONVERSION OF ROUGHLY 600 OVERTHECOUNTER DRUGS TO PRESCRIPTIONONLY STATUS BRINGS ITALIAN PRACTICE INTO LINE WITH STANDARDS PREVAILING IN MOST OTHER EUROPEAN COUNTRIES ACCORDING TO INDUSTRY ANALYSTS THE WIDE AVAILABILITY OF POTENT PHARMACEUTICALS OPENED THE POSSIBILITY OF ABUSE AND PROBABLY FOSTERED EXCESS CONSUMPTION OF MANY MEDICINES IN ITALY SILVIO GARATTINI A MEMBER OF THE GOVERNMENT PANEL THAT DEVISED THE NEW RULES TOLD ITALIAN TELEVISION PEOPLE HAVE TO UNDERSTAND THAT A MEDICAL PRESCRIPTION IS NECESSARY WHEN PEOPLE BUY ANTIBIOTICS TRANQUILIZERS OR ANTIVIRAL MEDICINES THEY ARE BUYING THINGS THAT CAN DEEPLY AFFECT THEIR BODIES AND IT'S LOGICAL THAT THE SALE NOT BE DECIDED ARBITRARILY MR GARATTINI INSISTED THAT A SHAKEUP OF THE SOCALLED PRONTUARIO OR OFFICIAL LIST OF MEDICINES ENTITLED TO REIMBURSEMENT FROM GOVERNMENT COFFERS WAS A CONSEQUENCE OF THE CEILING OF 10 TRILLION LIRE 585 BILLION SLAPPED ON 1994 DRUG OUTLAYS BY THE ITALIAN PARLIAMENT IF SUCCESSFUL THE AUSTERITY DRIVE WOULD SHAVE THREE TRILLION LIRE OR ABOUT 30 FROM THE MEDICINE BUDGET THE RECLASSIFICATION OF DRUGS WASN'T MADE IN AN ARBITRARY WAY MR GARATTINI ADDED AND THE PHARMACEUTICAL INDUSTRY KNEW SINCE JULY THAT THIS WAS COMING AND SHOULDN'T BE SURPRISED THAT THE COMMITTEE RESPECTED THE LAW INDUSTRY EXECUTIVES GAVE A SLIGHTLY DIFFERENT ACCOUNT ACKNOWLEDGING THAT ITALIAN POLITICIANS HAD INDEED VOWED TO PRUNE THE DRUG BILL SEVERAL MONTHS AGO BUT UNTIL VIRTUALLY THE LAST MINUTE THEY SAID THERE REMAINED DISAGREEMENT ABOUT EXACTLY HOW TO DO SO AND SKEPTICISM PREVAILED AMONG OUTSIDERS ABOUT CHANCES OF REACHING THE COSTCUTTING TARGET AFTER ALL GERMANY'S DECISION TO TRIM A MERE 10 FROM ANNUAL STATE DRUG OUTLAYS LAST YEAR LED TO MONTHS OF HAVOC THROUGHOUT ITS HEALTHCARE SYSTEM AND ITALY ITSELF HAD SLAPPED STINGING PRICE CUTS ON PRESCRIPTION MEDICINES AS RECENTLY AS LAST SPRING THE AUSTERITY PROGRAM THAT WAS FINALLY ADOPTED GROUPS DRUGS INTO THREE CATEGORIES ONE FOR LIFESAVING THERAPIES THAT WILL BE PAID FOR COMPLETELY BY THE STATE A SECOND CLASS OF SOCALLED HIGHVALUE THERAPEUTIC DRUGS FOR WHICH THE PATIENT WILL PAY 50 OF THE PRICE AND ALL OTHER MEDICINES FOR WHICH THE PATIENT WILL PAY THE ENTIRE BILL EXEMPTIONS WILL BE ALLOWED FOR CHILDREN UNDER THE AGE OF 10 AND PEOPLE OVER 60 WHO WILL RECEIVE LIFESAVING AND HIGHVALUE DRUGS FOR FREE POOR ITALIANS ALSO WILL RECEIVE MOST MEDICINES WITHOUT CHARGE HOWEVER MANY PHARMACEUTICAL COMPANIES WERE SHOCKED WHEN DRUGS OF PROVEN THERAPEUTIC EFFICACY WERE CONSIGNED TO THE ZEROREIMBURSEMENT CATEGORY SMITHKLINE BEECHAM PLC SAW ITS BIGSELLING ANTIBIOTIC AUGMENTIN NEW ANTIARTHRITIS DRUG RELAFEX AND ANTIDEPRESSANT SEROXAT ALL WIND UP IN THE LOWEST REIMBURSEMENT CLASS BRAD WILSON CHAIRMAN OF EUROPEAN PHARMACEUTICALS AT SMITHKLINE ESTIMATED THAT THE ANGLOAMERICAN COMPANY COULD LOSE 70 MILLION 1033 MILLON OF ITALIAN SALES PREVIOUSLY EXPECTED TO REACH 250 MILLION THIS YEAR I DON'T UNDERSTAND THE RATIONALE DRUGS LIKE AUGMENTIN AND SEROXAT CAN'T BE DOWN THERE AT ZERO PERCENT THERE'S NO WAY THE INDUSTRY CAN SURVIVE THAT IN ITALY MR WILSON SAID FALLOUT FROM THE REIMBURSEMENT SHUFFLE APPARENTLY WILL VARY FROM COMPANY TO COMPANY THOUGH AN ACCURATE OVERVIEW WAS VIRTUALLY IMPOSSIBLE TO PIECE TOGETHER IMMEDIATELY THE ITALIAN PRESS ESTIMATES THAT SOME INTERNATIONAL CONCERNS STAND TO LOSE BETWEEN 40 AND 50 OF THEIR ANNUAL ITALIAN SALES RHONEPOULENC RORER INC AND SANDOZ AG TWO COMPANIES CITED BY THE ITALIAN PRESS AS BIG POTENTIAL LOSERS DECLINED TO COMMENT MEANWHILE A SPOKESMAN FOR MERCK & CO SAID THE US DRUG GIANT'S MAJOR PRODUCTS SUCH AS CHOLESTEROLLOWERING AGENT ZOCOR PROSTATE MEDICINE PROSCAR AND BIGSELLING HEART DRUG VASOTEC SOLD IN EUROPE UNDER THE BRAND NAME RENITEC HAD ALL RETAINED 100 REIMBURSEMENT STATUS WHILE PROSCAR RETAINED ITS FULLREIMBURSEMENT STATUS THE MERCK SPOKESMAN NOTED SEVERAL OLDER PLANTEXTRACT MEDICATIONS USED TO TREAT ENLARGED PROSTRATE CONDITIONS WERE REMOVED FROM THE PRONTUARIO BY ITALIAN AUTHORITIES LOBBYING EFFORTS DIDN'T APPEAR TO AFFECT THE RECLASSIFICATIONS SMITHKLINE'S MR WILSON MADE TWO TRIPS TO MILAN DURING DECEMBER AND HEADED A PRESENTATION OF THE LATEST CLINICAL DATA ON RELAFEX WHICH WAS THOUGHT TO BE IN JEOPARDY OF BEING RELEGATED TO A LOWER CATEGORY REACTION TO THAT PRESENTATION APPEARED FAVORABLE AND WE WENT TO THE CHRISTMAS BREAK REASONABLY OPTIMISTIC THAT AT LEAST OUR PRIMARY PRODUCTS WOULDN'T FALL INTO THE WRONG CLASS MR WILSON FUMED WE CAME BACK TO FIND THAT'S EXACTLY WHAT HAPPENED DRUG COMPANIES HAVE UNTIL THE END OF JANUARY TO APPEAL THE RECLASSIFICATIONS FOLLOWING WHICH THE GOVERNMENT WILL HAVE A FURTHER 60 DAYS TO RECONSIDER BUT THE RECLASSIFICATIONS REMAIN IN FORCE DURING THE APPEAL PROCESS SO FOR THE FIRSTQUARTER WE'RE GOING TO BE DEVASTATED SMITHKLINE'S MR WILSON SAID IT'S SO CATASTROPHIC THAT I CAN'T BELIEVE THE REFORM PROGRAM WILL SUSTAIN ITSELF IN THIS FORM BUT I DON'T KNOW WHAT THE SWINGBACK WILL BE OR WHAT THE MIDDLE GROUND WE MIGHT FIND WORKING WITH THE GOVERNMENT HE ADDED OFFICIALS AT FARMINDUSTRIA A NATIONAL DRUG INDUSTRY GROUP RAISED THE POSSIBILITY OF LEGAL ACTION HOWEVER NOTING THAT ITALIAN POLITICIANS FREQUENTLY MODIFY OR WITHDRAW CONTROVERSIAL LEGISLATION SOME INDUSTRY OFFICIALS URGED BEHINDTHESCENES ACTION INSTEAD OF A COURT CHALLENGE BUT THE INVOLVEMENT OF SEVERAL BIG DRUG COMPANIES IN ITALY'S 22MONTH CORRUPTION SCANDAL PRESENTS A DILEMMA IN THE CHOICE OF TACTICS THE PHARMACEUTICAL INDUSTRY IN MANY WAYS HAS LOST ALL ITS CREDIBILITY AND THE INTERLOCUTORS WE PREVIOUSLY TALKED TO HAVE DISAPPEARED IN THE WAKE OF THE SCANDAL THERE'S BEEN A COMPLETE BREAKDOWN OF CONTACTS WITH AUTHORITIES ONE INDUSTRY OFFICIAL CONCEDED MR GARATTINI THE PANEL MEMBER UNDERSCORED THE PROBLEM ASSERTING THAT THE REVISION OF DRUG COVERAGE WAS DONE BECAUSE THE PEOPLE WANTED TO GET THEIR HANDS ON A SYSTEM THAT WAS THE FRUIT OF CORRUPTION BRIBES AND DISHONESTY 9401100127 940110 SEC SEEKS CHANGES IN PACT INVOLVING GOLDMAN SACHS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION WANTS CHANGES MADE IN A PROPOSED PACT WITH GOLDMAN SACHS & CO TO SETTLE AN EXPECTED ADMINISTRATIVE COMPLAINT INVOLVING GOVERNMENTSECURITIES TAX TRADES IN THE 1980S PEOPLE FAMILIAR WITH THE MATTER SAID THE SEC DECIDED AT A RECENT CLOSEDDOOR ENFORCEMENT MEETING TO SEEK MORE MONEY FROM GOLDMAN SACHS THAN WAS INITIALLY PROPOSED AS WELL AS SOME CHANGES IN THE LANGUAGE OF THE PROPOSED ACCORD DETAILS WEREN'T AVAILABLE THE CHANGES ARE EXPECTED TO BE ACCEPTABLE TO GOLDMAN SACHS AND THE SETTLEMENT SHOULD BE MADE FINAL WITHOUT MUCH FURTHER DELAY THESE PEOPLE SAID SEC ENFORCEMENT DIRECTOR WILLIAM MCLUCAS DECLINED TO COMMENT ON THE MATTER AS DID A SPOKESMAN FOR GOLDMAN SACHS AS REPORTED THE CASE CENTERS ON ALLEGEDLY PREARRANGED GOVERNMENTSECURITIES TRADES DESIGNED TO CREATE THE FALSE APPEARANCE OF TRADING LOSSES FOR TAX PURPOSES SUCH TRADES FIRST CAME TO LIGHT IN THE SEC'S 1992 COMPLAINT AGAINST SALOMON BROTHERS INC A UNIT OF SALOMON INC THAT COMPLAINT WHICH FOCUSED CHIEFLY ON SALOMON'S TREASURYAUCTION SCANDAL ALLEGED THAT SALOMON ENGAGED IN PREARRANGED TRADES IN 1986 TO CREATE THE FALSE APPEARANCE THAT IT HAD REALIZED BONA FIDE TRADING LOSSES FOR TAX PURPOSES THE SEC'S ANTICIPATED ADMINISTRATIVE COMPLAINT IS EXPECTED TO ALLEGE THAT GOLDMAN SACHS VIOLATED RECORDKEEPING LAWS IN CONNECTION WITH TAX TRADES INITIATED BY SALOMON IN 1986 AS WELL AS IN SIMILAR TRADES UNDERTAKEN BY GOLDMAN SACHS ON ITS OWN INITIATIVE NO INDIVIDUALS ARE EXPECTED TO BE CITED IN THE SEC'S GOLDMAN SACHS ACTION THE ADMINISTRATIVE COMPLAINT AGAINST GOLDMAN SACHS ALSO IS EXPECTED TO CITE SOME UNRELATED RELATIVELY MINOR ALLEGED VIOLATIONS OF MORE RECENT VINTAGE THE PROPOSED SETTLEMENT AMOUNT IS DESCRIBED BY PEOPLE FAMILIAR WITH THE MATTER AS BEING IN THE LOW SIXFIGURE RANGE EVEN ASSUMING THE INCREASE SOUGHT BY THE SEC IS ACCEPTED BY GOLDMAN THE TAX TRADES OCCURRED BEFORE CONGRESS PASSED LEGISLATION THAT GREATLY ENHANCED THE SEC'S ABILITY TO EXACT MONEY FROM ALLEGED PERPETRATORS OF SECURITIESLAW VIOLATIONS LAWYERS FOR PAUL MOZER WHO RAN SALOMON'S GOVERNMENTBOND DESK WHEN THE TREASURY SCANDAL OCCURRED SAID IN A PRESENTENCING MEMORANDUM FILED WITH A FEDERAL JUDGE IN NEW YORK LAST MONTH THAT MR MOZER TOLD AUTHORITIES ABOUT GOLDMAN SACHS'S ALLEGED INVOLVEMENT IN THE TAX TRADES AND PROVIDED A DETAILED DESCRIPTION OF HOW AND WHY THESE TRADES WERE CONDUCTED MR MOZER LAST YEAR WAS SENTENCED TO FOUR MONTHS IN JAIL AND FINED 30000 AFTER PLEADING GUILTY TO TWO COUNTS OF LYING TO A FEDERAL AGENCY IN CONNECTION WITH THE TREASURYBOND SCANDAL HE IS CONTESTING SEC CIVIL CHARGES RELATED TO THE SCANDAL 9401100126 940110 MARKETING & MEDIA PEPSICO IS INTRODUCING SOME BOLDER PACKAGING PEPSICO INC IS COMING OUT WITH BOLDER PACKAGING FOR SOME OF ITS SOFTDRINK PRODUCTS THIS MONTH THE PEPSICOLA BEVERAGE UNIT IN SOMERS NY IS ROLLING OUT SLIGHT CHANGES TO ITS DIET PEPSI LABEL AND A NEW DESIGN FOR ITS MULTIPACK CARDBOARD BOXES FOR OTHER BIG BRANDS THE NEW DIET PEPSI CANS FEATURE A DIAGONAL LOGO PREVIOUSLY IT HAD BEEN VERTICAL AND THICKER RED STRIPES THE NEW BOXES HAVE MORE PROMINENT PHOTOS OF SOFTDRINK CANS IN A SPEECH LAST FALL ROBERTO GOIZUETA COCACOLA CO CHIEF EXECUTIVE OFFICER AND CHAIRMAN INDICATED THAT COKE WILL UNLEASH POWERFUL PACKAGING INITIATIVES OF ITS OWN THIS YEAR A COMPANY SPOKESWOMAN WOULDN'T COMMENT ON CURRENT PLANS 9401100125 940110 POLITICS & POLICY WALSH IRANCONTRA REPORT ORDERED RELEASED BY PANEL WASHINGTON A THREEJUDGE PANEL REJECTING ARGUMENTS OF FORMER REAGAN ADMINISTRATION OFFICIALS ORDERED THE RELEASE OF THE SPECIAL PROSECUTOR'S REPORT ON THE IRANCONTRA AFFAIR PROVIDED THE SUPREME COURT DOESN'T INTERVENE THE FEDERAL PANEL LEFT A 10DAY WAITING PERIOD TO ALLOW APPEALS TO THE HIGH COURT BUT UNLESS THE JUSTICES INTERVENE FRIDAY'S RULING CLEARS THE WAY FOR THE REPORT FINALLY TO BE MADE PUBLIC THIS MONTH THAT WOULD BE A LONGSOUGHT VICTORY FOR THE PROSECUTOR LAWRENCE WALSH STILL THE PANEL MADE NO SECRET OF ITS DISCOMFORT WITH THE ACCUSATORY TONE OF THE REPORT AND ITS USE OF MATERIAL DRAWN FROM SECRET GRAND JURY TESTIMONY GIVEN THE INTENSITY OF THE ISSUE IT SEEMS LIKELY SOME PARTY WILL ASK FOR A STAY ATTORNEYS FOR PRESIDENT REAGAN AND FORMER ATTORNEY GENERAL EDWIN MEESE INDICATED LAST WEEK THAT AN APPEAL TO THE SUPREME COURT WAS POSSIBLE 9401100124 940110 MARKETING & MEDIA CABLE OFFICIALS AGREE TO OUTSIDE MONITOR OF NETWORK VIOLENCE NEW YORK IN A SURPRISE MOVE TOP EXECUTIVES OF SEVERAL CABLE NETWORKS TENTATIVELY AGREED TO HAVE THEIR NETWORKS MONITORED FOR VIOLENT CONTENT AS A RESULT SEN PAUL SIMON D ILL A LONGTIME LEADER OF CONGRESSIONAL EFFORTS TO LIMIT VIOLENT CONTENT ON TELEVISION INDICATED TO SOME INDUSTRY LEADERS THAT FEDERAL LEGISLATION ON THE ISSUE MAY NOT BE NECESSARY SEN SIMON COULDN'T BE REACHED FOR COMMENT EXECUTIVES FROM TIME WARNER INC'S HOME BOX OFFICE VIACOM INC'S SHOWTIME AND TURNER BROADCASTING SYSTEM INC MET FRIDAY WITH SEN SIMON'S OFFICE TO DISCUSS WAYS TO CURB VIOLENCE ON TELEVISION ONE OUTCOME OF THE MEETING A SPOKESWOMAN FOR THE NATIONAL CABLE TELEVISION ASSOCIATION CONFIRMED WAS AN AGREEMENT TO LOOK MORE CLOSELY AT HOW TO IMPLEMENT AN OUTSIDE MONITOR THE MOVE UPSET EXECUTIVES AT THE RIVAL BROADCAST NETWORKS WHO HAVE OPPOSED ANY PLAN TO MONITOR VIOLENT ACTS OR IN ANY WAY LEGISLATE THE CONTENT OF WHAT THEY PUT ON THE AIR EXECUTIVES AT CAPITAL CITIES/ABC INC CBS INC AND GENERAL ELECTRIC CO'S NBC WHO HAD A SEPARATE MEETING WITH SEN SIMON FRIDAY CONTEND THAT IT IS CABLE THAT AIRS THE MOST VIOLENT PROGRAMMING AND THAT THE BROADCAST NETWORKS HAVE CUT WAY BACK ON VIOLENT FARE AND THUS DON'T NEED MONITORING DESPITE BEING OPPOSED TO MONITORING ONE BROADCAST NETWORK EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED SAID HIS NETWORK WAS VERY ENCOURAGED THAT SEN SIMON FEELS THAT LEGISLATION MAY NOT BE NECESSARY HE ADDED WE APPLAUD THE VOLUNTARY STEPS BY CABLE AND THEY HAVE MORE TO TAKE INCLUDING RESTRICTING VIOLENCE TO LATER HOURS WHEN CHILDREN AREN'T LIKELY TO BE IN THE AUDIENCE AND EDITING SOME VIOLENT ACTS OUT OF THEATRICAL MOVIES 9401100123 940110 COMPETITIVE SALES OF MUNIS EXPECTED TO SHOW INCREASE WASHINGTON THE NUMBER OF COMPETITIVE MUNICIPAL BOND SALES IS LIKELY TO INCREASE PARTLY BECAUSE THE FAR MORE PREVALENT NEGOTIATEDSALE METHOD HAS COME UNDER A CLOUD OF SUSPICION FOR ALLEGED POLITICAL FAVORITISM I THINK WE'LL SEE MORE COMPETITIVE BIDDING THIS YEAR SAID FENN PUTMAN OF LEHMAN BROTHERS CHAIRMAN OF THE PUBLIC SECURITIES ASSOCIATION THAT WOULD COME AS GOOD NEWS TO SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT WHO HAS ENCOURAGED MUNICIPAL BOND ISSUERS TO TAKE A HARD LOOK AT COMPETITIVE BIDDING BEFORE DOING A NEGOTIATED OFFERING JEFFREY ESSER EXECUTIVE DIRECTOR OF THE GOVERNMENT FINANCE OFFICERS ASSOCIATION REPORTS INCREASED SENSITIVITY BY STATE AND LOCAL OFFICIALS TO THE NEED TO ASSESS THE PROS AND CONS OF COMPETITIVE AS OPPOSED TO NEGOTIATED BOND SALES J CHESTER JOHNSON HEAD OF GOVERNMENT FINANCE ASSOCIATES INC A FINANCIAL ADVISORY FIRM SAID WE'VE GOT SEVERAL CLIENTS WHO HISTORICALLY HAVE SOLD BONDS ON A NEGOTIATED BASIS WHO HAVE MOVED FOR PUBLIC POLICY CONSIDERATIONS TO A COMPETITIVE APPROACH 9401100122 940110 OWENS & MINOR CHIEF EXPECTS GROWTH TO ACCELERATE WITH PURCHASE OF RIVAL BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL TO THE CHIEF EXECUTIVE OF OWENS & MINOR INC WHICH RECENTLY ANNOUNCED A PLAN TO PURCHASE RIVAL STUART MEDICAL INC THE WHOLE CAN SOMETIMES BE GREATER THAN THE SUM OF ITS PARTS G GILMER MINOR III IS OPTIMISTIC THAT ONCE THE NATION'S SECONDLARGEST DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES COMPLETES ITS ACQUISITION OF CLOSELY HELD STUART MEDICAL IN APRIL THE COMBINED COMPANY CAN HAVE A GREATER GROWTH RATE THAN WE'VE ENJOYED IN THE PAST FOR THE PAST 20 YEARS SALES GROWTH AT OWENS & MINOR HAS AVERAGED ABOUT 18 TO 20 A YEAR WHEN THE PROPOSED PURCHASE OF STUART MEDICAL FOR 402 MILLION IN CASH AND 115 MILLION OF CONVERTIBLE PREFERRED STOCK WAS ANNOUNCED LATE LAST MONTH THE COMPANIES SAID THEY EXPECTED PROFORMA SALES FOR 1993 TO EXCEED 22 BILLION OWENS & MINOR ALSO PLANS TO REFINANCE STUART MEDICAL DEBT TOTALING ABOUT 140 MILLION THE COMPANIES DISTRIBUTE SUCH ITEMS AS DRESSINGS NEEDLES SYRINGES AND SURGICAL PACKS AND GOWNS MOSTLY TO HOSPITALS IN AN INTERVIEW MR MINOR THE PRESIDENT AND CHIEF EXECUTIVE DECLINED TO SPECULATE ON OWENS & MINOR'S FOURTHQUARTER PERFORMANCE HOWEVER HE SAID THE COMPANY HAS BEEN ON TARGET FOR THE FIRST THREE QUARTERS AND HOPEFULLY THAT WILL BE TRUE IN THE FOURTH QUARTER WALL STREET ANALYSTS ARE LOOKING FOR THE COMPANY TO REPORT EARNINGS OF 87 CENTS TO 90 CENTS A SHARE FROM CONTINUING OPERATIONS FOR THE FULL YEAR OR A TOTAL OF ABOUT 178 MILLION TO 185 MILLION IN 1992 OWENS & MINOR HAD EARNINGS FROM CONTINUING OPERATIONS OF 154 MILLION OR 78 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN FEBRUARY 1992 OWENS & MINOR SOLD ITS DRUG DISTRIBUTION BUSINESS AND RECORDED A ONETIME GAIN OF 56 MILLION OR 29 CENTS A SHARE BASED ON THE COMPANY'S NINEMONTH EARNINGS FROM CONTINUING OPERATIONS OF 63 CENTS A SHARE AND ANALYSTS' FULLYEAR ESTIMATES FORECASTS CALL FOR OWENS & MINOR TO REPORT FOURTHQUARTER EARNINGS OF 24 CENTS TO 27 CENTS A SHARE OR 49 MILLION TO 55 MILLION FROM CONTINUING OPERATIONS MR MINOR SAID HE EXPECTS SALES GROWTH FOR THE QUARTER TO PICK UP A LITTLE BIT FROM THE 16 TO 17 AVERAGE FOR THE FIRST THREE QUARTERS OF 1993 IN THE 1992 FOURTH QUARTER OWENS & MINOR HAD EARNINGS FROM CONTINUING OPERATIONS OF 24 CENTS A SHARE OR 48 MILLION ADJUSTED FOR A 3FOR2 STOCK SPLIT IN MARCH SALES TOTALED 3051 MILLION THE WAY MR MINOR SEES IT UNLIKE NO 1 MEDICAL DISTRIBUTOR BAXTER INTERNATIONAL INC WHICH ALSO MANUFACTURES MEDICAL SUPPLIES BOTH OWENS & MINOR AND STUART MEDICAL HAVE A PURE DISTRIBUTION MENTALITY BUT IN THE PAST UNLIKE BAXTER NEITHER COMPANY COULD COVER THE WHOLE COUNTRY NOW WITH THE COMBINED DISTRIBUTION NETWORK WE CAN REALLY CREATE A MORE SERIOUS ALTERNATIVE TO BAXTER'S DISTRIBUTION MR MINOR SAID OWENS & MINOR BASED IN RICHMOND VA HAS A STRONG PRESENCE IN THE SOUTH SOUTHWEST AND WEST WHILE STUART MEDICAL IS TRADITIONALLY STRONG IN THE MIDWEST AND THE EAST BOTH COMPANIES EMPHASIZE LOWCOST DISTRIBUTION MR MINOR SAID WE BOTH UNDERSTAND WE ARE IN A PENNIES BUSINESS HE SAID REFERRING TO THIN PROFIT MARGINS WE DON'T HAVE ANY MARGIN FOR ERROR IN OUR BUSINESS DEALINGS HE SAID HE ADDED THAT BECAUSE OF THE EXPECTED INCREASE IN SALES VOLUME BOTH THE COMPANY AND ITS SUPPLIERS SHOULD BENEFIT FROM ECONOMIES OF SCALE WITH THIS IN MIND MR MINOR'S STRATEGY WILL BE TO CONTINUE TO FOCUS ON THE NEEDS OF ITS HOSPITAL CUSTOMERS WHICH ARE UNDER INCREASING PRESSURE TO REDUCE COSTS THEY'RE STARTING TO FEEL THEY DON'T NEED TO OWN ANY INVENTORY BECAUSE IT'S A CAPITAL INVESTMENT THAT'S TAKING AWAY FROM OTHER SERVICES MR MINOR SAID ONE STRATEGY OWENS & MINOR HAS BEGUN IS TO SEND ITS PEOPLE TO THE HOSPITALS TO MANAGE INVENTORY WE'VE TAKEN OVER THE WHOLE MATERIALS FUNCTION AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES HE SAID WITH OWENS & MINOR EMPLOYEES IN THE HOSPITAL DISTRIBUTING PRODUCTS TO THE FLOOR MR MINOR SEES TECHNOLOGY AS THE KEY TO WINNING IN THIS MARKET THE PRODUCTS ARE PRETTY BOILERPLATE WE'RE SELLING SYSTEMS AND INFORMATION HE SAID HE BELIEVES THE COMBINATION OF OWENS & MINOR AND STUART MEDICAL WILL HELP PROPEL US ALONG THAT LINE FASTER THAN EITHER ONE OF US COULD ALONE BOTH COMPANIES ARE IN THE PROCESS OF REENGINEERING THEIR COMPUTER SYSTEMS HELPING TO PUT INVENTORY INFORMATION DIRECTLY IN THE HANDS OF SALES REPRESENTATIVES CUSTOMERS AND EVEN SUPPLIERS MR MINOR EXPECTS THAT THERE WILL BE SOME STAFF CUTS AS THE TWO COMPANIES CONSOLIDATE BUT HE EMPHASIZES THAT THE NEW COMPANY WILL BE LOOKING TO RETAIN THE BEST PEOPLE FROM BOTH COMPANIES AND THAT IT WILL GO THE EXTRA MILE TO TAKE CARE OF THOSE BEING LAID OFF HE HOPES THAT THE CONSOLIDATION WILL BE ACCOMPLISHED IN LESS THAN A YEAR THE PURCHASE WILL BE FINANCED EITHER THROUGH REVOLVING BANK CREDITS OR PUBLIC DEBT 9401100121 940110 BOEING PARTNERS TO PRESS AHEAD ON BIG JETLINER MOVE COMES DESPITE SIGNS THAT PLANE MAY COST FAR MORE THAN THOUGHT BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO AND FOUR EUROPEAN PARTNERS TENTATIVELY AGREED TO PROCEED WITH A CRUCIAL NEXT PHASE IN THEIR PROPOSED JOINT EFFORT TO BUILD THE WORLD'S LARGEST JETLINER CAPABLE OF CARRYING 550 TO 800 PASSENGERS THE MOVE COMES DESPITE THE GROWING REALIZATION THAT THE COST OF DEVELOPING THE SUPER JUMBO JET MAY BE FAR GREATER THAN EXPECTED PROBABLY AT LEAST 50 HIGHER THAN THE 10 BILLION ESTIMATED JUST A YEAR AGO SAY PEOPLE FAMILIAR WITH TALKS INVOLVING THE FIVE COMPANIES THE TOP EXECUTIVES OF ALL THE COMPANIES INCLUDING BOEING CHAIRMAN FRANK SHRONTZ ARE EXPECTED TO MEET IN MARCH TO APPROVE PRESSING AHEAD WITH THE ALLIANCE ACCORDING TO PEOPLE FAMILIAR WITH THE TWO DAYS OF TALKS THAT CONCLUDED OVER THE WEEKEND IN NEW YORK THE OTHER COMPANIES INCLUDE LEAD EUROPEAN PARTNER DEUTSCHE AEROSPACE A UNIT OF GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE AND CONSTRUCCIONES AERONAUTICAS OF SPAIN THE FOUR COMPANIES CONTROL AIRBUS INDUSTRIE THE EUROPEAN CONSORTIUM THAT IS THE MAJOR RIVAL OF SEATTLEBASED BOEING THE PROJECT IS PRESSING AHEAD DESPITE SEVERAL OBSTACLES THE COST OF BRINGING THE GIGANTIC JET TO THE POINT OF PRODUCTION SOMETIME AROUND THE YEAR 2000 NOW APPEARS LIKELY TO REACH 15 BILLION TO 20 BILLION SAY PEOPLE FAMILIAR WITH THE NEW ESTIMATES AND OFFICIALS OF AIRBUS ITSELF WHO AREN'T PART OF THE CURRENT TALKS ARE CONTINUING TO PUSH FOR A ROLE IN THE BOEINGLED VENTURE AND TO ALTER IT SO THAT THE AIRBUS ENTITY WOULD REPRESENT ALL OF THE EUROPEAN INTERESTS IN THE VENTURE ACCORDING TO THESE PEOPLE FOLLOWING THE WEEKEND TALKS A BOEING SPOKESMAN DECLINED TO COMMENT BEYOND READING A STATEMENT PREPARED BY THE COMPANIES THE PARTICIPANTS SAID THEY EXTENDED THE YEARLONG FIRST PHASE OF THEIR JET STUDY BY TWO MORE MONTHS THROUGH MARCH TO FINISH UNCOMPLETED WORK IN THE STATEMENT BOEING PROJECT LEADER JOHN HAYHURST AND DEUTSCHE AEROSPACE REPRESENTATIVE JUERGEN THOMAS CITED PROGRESS IN FIRSTYEAR FEASIBILITY STUDIES AND SAID THEY WILL MEET IN MARCH TO REVIEW PROGRESS AN AIRBUS SPOKESMAN HAD NO COMMENT BUT THOSE FAMILIAR WITH THE TALKS SAID THE OFFICIALS AGREED IN NEW YORK TO RECOMMEND TO THE COMPANIES' CHAIRMEN THAT THE NEXT PHASE OF THE STUDIES BE IMPLEMENTED TAKING THE PROJECT INTO 1995 A FORMAL DECISION WOULD FOLLOW IN A YEAR OR TWO ON WHETHER THE COMPANIES WOULD BEGIN PRODUCING THE JETLINER THE FIVE COMPANIES HAVE BANDED TOGETHER BECAUSE THEY BELIEVE UPFRONT COSTS ARE TOO HIGH AND DEMAND FOR THE JETS IS TOO LIMITED TO SUPPORT COMPETING PRODUCERS THE COMPANIES ESTIMATE THAT DEMAND WILL EXIST FOR 400 TO 500 OF THE AIRCRAFT ALTHOUGH THE EXTENT OF DEMAND DEPENDS ON PRECISELY HOW LARGE THE AIRCRAFT IS AND WHEN PRODUCTION BEGINS THERE ARE OTHER UNCERTAINTIES ON THE HORIZON THE WORLD'S LARGEST CARRIERS WHICH ARE THE MOST LIKELY BUYERS FOR THE PLANE ARE HAVING TROUBLE GETTING EXCITED ABOUT NEWAIRCRAFT DEVELOPMENT AS THEY STRUGGLE TO RETURN TO PROFITABILITY AND PAY FOR THE NEW JETS THEY ALREADY HAVE ON ORDER ONLY BRITISH AIRWAYS HAS FREQUENTLY MENTIONED ITS INTEREST IN A SUPER JUMBO JETLINER FOR BOEING AND THE EUROPEAN PARTNERS THE PROJECT ALSO INVOLVES SETTING UP A FREESTANDING ENTERPRISE WITH LONGSTANDING RIVALS AS THEY STUDY WHAT SIZE JET TO PRODUCE THE COMPANIES WANT TO MAKE SURE THEY DON'T SLOW SALES FOR CURRENT AND FUTURE LARGE PLANES THEY PRODUCE BOEING CURRENTLY MAKES THE WORLD'S LARGEST COMMERCIAL JETLINER THE 440PASSENGER 747400 AN AIRCRAFT IT HAS CONSIDERED STRETCHING OR MODIFYING THE WINGS OF TO CARRY MORE PASSENGERS GREATER DISTANCES AIRBUS AS A CONSORTIUM HAS CONTEMPLATED BUILDING ITS OWN 747SIZE AIRPLANE AND ITS OWN SUPER JUMBO JET TO COMPLICATE MATTERS ANY NEW CONSORTIUM FORMED TO BUILD A SUPER JUMBO JET MUST BE STRUCTURED IN A WAY THAT WILL PASS MUSTER WITH ANTITRUST REGULATORS ON BOTH SIDES OF THE ATLANTIC ASSUMING THE COMPANIES' CHAIRMEN APPROVE THE TENTATIVE AGREEMENT AND THE INCREASING EXPENSES FOR THE NEXT PHASE OF STUDIES MUCH OF THE NEXT YEAR IS LIKELY TO BE SPENT SETTLING ON A SIZE FOR THE JET AND DEFINING THE STRUCTURE OF THE CONSORTIUM IN ADDITION TO CARVING OUT OWNERSHIP STAKES FOR EACH OF THE MEMBERS THE COMPANIES MUST SETTLE ON AN EFFICIENT MEANS FOR DESIGNING THE JET AND FOR PRODUCING IT USING FACTORIES ON SEVERAL CONTINENTS THEY MUST ALSO CONSIDER OFFERING A ROLE IN PRODUCTION TO COMPANIES IN COUNTRIES SUCH AS RUSSIA AND JAPAN WHOSE AIRLINES WILL BE IMPORTANT CUSTOMERS FOR THE BIG PLANE 9401100120 940110 CREDIT RATINGS WESTINGHOUSE RATING LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC CITING WEAKNESS IN WESTINGHOUSE ELECTRIC CORP'S CORE BUSINESSES LOWERED ITS RATINGS ON 4 BILLION OF THE COMPANY'S LONG AND SHORTTERM DEBT MOODY'S SAID WESTINGHOUSE'S EFFORTS TO REBUILD ITS DEPLETED CAPITAL STRUCTURE WILL TAKE LONGER THAN PREVIOUSLY BELIEVED AS A RESULT OF THE PERSISTENT WEAKNESS IN OPERATING EARNINGS AND OPERATING CASH FLOW DUE TO WEAK GLOBAL DEMAND MOODY'S ADDED THAT WESTINGHOUSE HAS A LARGE UNFUNDED PENSION LIABILITY AS WELL AS A POTENTIAL CALL ON FUTURE CASH TO STRENGTHEN WESTINGHOUSE'S CORE BUSINESSES IN A STATEMENT WESTINGHOUSE'S CHIEF EXECUTIVE MICHAEL H JORDAN EXPRESSED DISAPPOINTMENT IN MOODY'S DECISION AND SAID MOST OF WESTINGHOUSE'S CORE BUSINESSES HOLD KEY STRATEGIC POSITIONS IN THEIR INDUSTRIES AND ARE EXPECTED TO GENERATE PROFITS AND CASH FLOW NECESSARY TO IMPROVE THE COMPANY'S EQUITY POSITION RATINGS DOWNGRADED INCLUDE THE PITTSBURGH COMPANY'S SENIOR NOTES AND DEBENTURES MEDIUMTERM NOTES INDUSTRIAL REVENUE BONDS AND SHELF REGISTRATION ALL OF WHICH WERE LOWERED TO BA1 FROM BAA3 MOODY'S ALSO LOWERED WESTINGHOUSE'S PREFERRED STOCK TO BA3 FROM BA1 AND ITS COMMERCIAL PAPER TO NOT PRIME FROM PRIME 3 WESTINGHOUSE CREDIT CORP'S DEBENTURES EUROBONDS FLOATINGRATE NOTES MEDIUMTERM NOTES AND SENIOR NOTES WERE DOWNGRADED TO BA1 FROM BAA3 ITT CORP NEW YORK STANDARD & POOR'S CORP DOWNGRADED THE SENIOR DEBT RATING OF ITT RAYONIER INC TO TRIPLEB FROM SINGLEAPLUS CITING ITT CORP'S PLAN TO SPIN OFF THE FOREST PRODUCTS UNIT ABOUT 500 MILLION IN DEBT IS AFFECTED S&P SAID THE DOWNGRADE WAS NECESSARY BECAUSE THE PARENTAL RELATIONSHIP HAD BEEN A KEY ELEMENT OF RAYONIER'S DEBT RATING ITT OFFICIALS CHARACTERIZED THE DOWNGRADE AS ESSENTIALLY A NEW RATING FOR A NEW COMPANY THE RATINGS AGENCY'S ANNOUNCEMENT HAD BEEN WIDELY EXPECTED SINCE ITT FIRST ANNOUNCED ITS PLANS TO SPIN OFF RAYONIER ABOUT TWO MONTHS AGO THE COMPANY IS EXPECTED TO ENACT THE SPINOFF IN FEBRUARY AT THE TIME OF THE SPINOFF ANNOUNCEMENT ITT EXECUTIVES NOTED THAT RAYONIER HAD ALWAYS RECEIVED A SEPARATE DEBTRATING FROM MOODY'S INVESTORS SERVICE INC CURRENTLY BAA2 AND IT EXPECTED S&P TO ISSUE AN EQUIVALENT RATING FOR RAYONIER PRIOR TO THE SPINOFF ITT CORP WHICH HAS INTERESTS IN HOTELS MANUFACTURING FINANCIAL SERVICES AND INSURANCE MAINTAINS ITS SINGLEAPLUS RATING 9401100119 940110 BUSINESS BRIEF SATELLITE TECHNOLOGY MANAGEMENT JUSTICE DEPARTMENT CLOSES PROBE OF SHIPMENT TO IRAN SATELLITE TECHNOLOGY MANAGEMENT INC WHICH HAS BEEN THE FOCUS OF A GOVERNMENT INVESTIGATION INTO A SHIPMENT TO IRAN SAID THE US DEPARTMENT OF JUSTICE CLOSED ITS CRIMINAL INVESTIGATION THE COMPANY SAID THE DEPARTMENT DETERMINED NOT TO TAKE ANY ACTION AGAINST IT HOWEVER SATELLITE TECHNOLOGY IN COSTA MESA CALIF SAID THAT A SEPARATE INVESTIGATION BY THE COMMERCE DEPARTMENT IS CONTINUING THAT AGENCY HASN'T YET DETERMINED WHETHER IT WILL UNDERTAKE ANY CIVIL PROCEEDING AGAINST THE COMPANY THE COMPANY SAID IN MAY FEDERAL OFFICIALS ALLEGED IN AFFIDAVITS FILED IN FEDERAL COURT IN LOS ANGELES THAT THE MAKER AND MARKETER OF SATELLITE COMMUNICATIONS SYSTEMS ATTEMPTED TO SHIP A 14 MILLION SYSTEM AND RELATED COMPUTER TO IRAN BY FALSELY DECLARING THAT THE SHIPMENT WAS LEGAL UNDER RULES RESTRICTING NUCLEAR PROLIFERATION THE COMPANY HAS SAID THAT THE SHIPMENT SHOULD HAVE BEEN ALLOWED UNDER THE PARTICULAR CIRCUMSTANCES 9401100118 940110 INTERNATIONAL BANESTO IS PERMITTED TO MAKE PAYMENTS ON SUBORDINATED DEBT SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S BANCO ESPANOL DE CREDITO SAID IT WILL BEGIN TO MAKE PAYMENTS ON ITS SUBORDINATED DEBT WITH THE APPROVAL OF THE BANK OF SPAIN IT HAD BEEN THOUGHT THAT THE TROUBLED BANK KNOWN AS BANESTO WOULDN'T BE ALLOWED TO MAKE PAYMENTS ON ITS SUBORDINATED DEBT THE BANK'S BOARD WAS DISMISSED RECENTLY BY THE CENTRAL BANK AFTER IT UNCOVERED A 500 BILLION PESETA 34 BILLION SHORTFALL ON ITS BOOKS UNDER SPANISH LAW BANKS POSTING LOSSES ARE NORMALLY BLOCKED FROM MAKING PAYMENTS ON SUBORDINATED DEBT BANESTO SAID IT WILL BEGIN JAN 16 TO PAY THE COUPON ON ITS 1993 ISSUE OF 1050 BILLION PESETAS IN SUBORDINATED BONDS DUE IN 1998 THE TOTAL AMOUNT TO BE PAID WILL REACH 134 BILLION PESETAS BANESTO SAID THE PAYMENT OF THIS ISSUE HAS THE BANK OF SPAIN'S APPROVAL AN APPROVAL WHICH IS EXTENDED TO THE REST OF BANESTO'S BOND ISSUES THE BANK SAID MEANWHILE BANESTO FORMER CHAIRMAN MARIO CONDE SAID HE WILL FINALLY BREAK HIS SILENCE THIS WEEK ABOUT THE EVENTS LEADING UP TO THE CENTRAL BANK'S DECISION TO TAKE OVER BANESTO MR CONDE IS EXPECTED TO APPEAR IN PUBLIC EITHER TOMORROW OR WEDNESDAY TO CHALLENGE ASSERTIONS BY THE CENTRAL BANK SEPARATELY IN A LETTER TO BRANCH MANAGERS ALFREDO SAENZ THE BANK'S CARETAKER CHAIRMAN TRIED TO REASSURE EMPLOYEES THAT HE AIMS TO RELAUNCH BANESTO AS ONE OF SPAIN'S BIGGEST BANKS MR SAENZ STRESSED THAT AFTER THE INITIAL LARGESCALE WITHDRAWAL OF DEPOSITS FROM BANESTO CONFIDENCE HAS BEGUN TO RETURN TO THE BANK 9401100117 940110 AILEEN LOSS WIDENED IN FISCAL 4TH QUARTER AMID CREDIT TROUBLE NEW YORK AILEEN INC REPORTED A WIDER LOSS FOR THE FISCAL FOURTH QUARTER AND SAID IT MAY NEED TO SEEK FEDERAL BANKRUPTCYLAW PROTECTION IF IT CAN'T RESOLVE CREDIT RENEGOTIATIONS WITH ITS LENDERS IN THE NEAR TERM FOR THE QUARTER ENDED OCT 30 THE RETAILER OF WOMEN'S SPORTSWEAR REPORTED A LOSS OF 12 MILLION OR 22 CENTS A SHARE COMPARED WITH A LOSS OF 364000 OR SEVEN CENTS A SHARE A YEAR EARLIER SALES FELL 12 TO 143 MILLION FROM 163 MILLION ANALYSTS SAID THE COMPANY SUFFERED FROM WEAK MERCHANDISING AILEEN SAID IT HIRED A NEW DESIGNER FORMERLY OF LIZ CLAIBORNE INC TO IMPROVE STYLE SELECTIONS IN 1990 AILEEN ABANDONED PLANS TO SELL THE COMPANY SAYING IT SAW IMPROVED PROSPECTS FOR GROWTH AND PROFITABILITY A SPOKESMAN FOR THE COMPANY SAID THE COMPANY HAD NO IMMEDIATE PLANS TO SELL AILEEN'S PRIMARY CREDIT PROBLEM STEMS FROM A FAILURE TO RENEGOTIATE A 4 MILLION UNSECURED REVOLVING CREDIT AGREEMENT WITH LENDERS THE LENDERS WANT COLLATERAL FOR THE DEBT THE COMPANY SAID BUT AN AGREEMENT HASN'T BEEN REACHED A SPOKESMAN SAID TALKS CONTINUE AND THE COMPANY HOPES TO REACH SOME AGREEMENT THIS MONTH WITH ITS CREDIT LINE UNDER NEGOTIATION THE COMPANY SAID DECLINES IN SALES HAVE LED TO A CASH SHORTFALL A SUBSTANTIAL PORTION OF TRADE PAYABLES ARE AT LEAST 60 DAYS PAST DUE RENT PAYMENTS ALSO HAVE BEEN DELAYED THE COMPANY SAID IT IS CUTTING COSTS THROUGHOUT OPERATIONS IN NEW YORK STOCK EXCHANGE TRADING AILEEN GAINED 25 CENTS TO CLOSE AT 3875 FRIDAY BUT THE COMPANY'S STOCK DIDN'T TRADE FOLLOWING ITS MIDAFTERNOON ANNOUNCEMENT 9401100116 940110 ROCHE SETS VENTURE WITH SHANGHAI SUNVE TO BUILD DRUG PLANT SPECIAL TO THE WALL STREET JOURNAL BASEL SWITZERLAND ROCHE HOLDING AG A SWISS DRUG MAKER AND SHANGHAI SUNVE PHARMACEUTICAL CORP SIGNED A JOINTVENTURE AGREEMENT TO SET UP A PHARMACEUTICAL PLANT IN SHANGHAI CHINA ROCHE WILL HOLD A 70 STAKE IN THE VENTURE WITH THE REST HELD BY SUNVE WHICH HAS SHANGHAI'S LARGEST DRUG PLANT A 30 MILLION INVESTMENT REPRESENTS AN INITIAL OUTLAY FOR THE FIRST PHASE OF A NEW 50000 SQUARE METER PLANT ROCHE SAID THE PLANT IS SCHEDULED TO ASSUME FULL OPERATION BY LATE 1996 THE FACTORY WILL MAKE ROCHE DRUG PRODUCTS RANGING FROM CANCER AND CARDIOVASCULAR TREATMENTS TO ANTIBIOTICS ANALGESICS AND MULTIVITAMINS THE PLANT WILL EMPLOY ADVANCED TECHNOLOGY SOME OF IT USED FOR THE FIRST TIME IN CHINA ROCHE SAID ROCHE SET UP OFFICES EARLY LAST YEAR IN BEIJING SHANGHAI AND GUANGZHOU IN CHINA IT HAS ACTIVITIES IN ITS FOUR MAIN BUSINESSES DRUGS VITAMINS FINE CHEMICALS DIAGNOSTICS AND FRAGRANCES AND FLAVORS ROCHE'S 1993 CHINA SALES WERE ROUGHLY 100 MILLION FRANCS 6748 MILLION SHANGHAI SUNVE MAKES ABOUT 100 DRUG PRODUCTS 9401100115 940110 INTERNATIONAL NEC'S POSSIBLE LINKUP WITH DELL LACKS VISION IN PC PRICE WAR ANALYSTS SAY BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO EMBATTLED PERSONALCOMPUTER MAKER NEC CORP WHICH LAST WEEK OPENED THE DOOR TO A LINKUP WITH DELL COMPUTER CORP AIMED AT PRESERVING NEC'S NEARMONOPOLY IN THE JAPANESE PC MARKET HAS INSTEAD REVEALED ITS OWN CONFUSION OVER DEALING WITH A STILLSIZZLING PRICE WAR ANALYSTS SAID NEC SAID FRIDAY THAT IT WAS NEGOTIATING TO SUPPLY ITS 98SERIES PCS TO DELL FOR SALE IN THE JAPANESE MARKET UNDER THE AUSTIN TEXAS COMPANY'S LABEL SUCH A DEAL WOULD BE THE FIRST TIME NEC HAS ALLOWED ANOTHER COMPANY TO SELL ITS PCS IN JAPAN NEC'S 98SERIES PCS AREN'T COMPATIBLE WITH MACHINES THAT CONFORM TO THE DE FACTO INTERNATIONAL STANDARD SET BY INTERNATIONAL BUSINESS MACHINES CORP THAT STRATEGY REFLECTS NEC'S DESIRE TO PRESERVE ITS HOMEGROWN PC STANDARD AGAINST EROSION BY THE IBMSTANDARD PCS NOW SOLD NOT JUST BY US VENDORS BUT BY ALL MAJOR JAPANESE PC MAKERS EXCEPT NEC THE COMPANY CLEARLY HOPES TO CEMENT ITS HOLD ON THE DOMESTIC MARKET BY GAINING ACCESS TO DELL'S MUCHVAUNTED SKILL AT SELLING PCS THROUGH DIRECT SALES OR MAIL ORDER BUT ANALYSTS SAID THE NEW DEAL IS PROBABLY MORE LIKELY TO CANNIBALIZE NEC'S OWN MARKET WITHOUT IMPROVING ITS OVERALL POSITION MUCH NEC HAS BEEN ON THE DEFENSIVE IN JAPAN'S PC WARS EVER SINCE DELL IBM AND COMPAQ COMPUTER CORP INVADED JAPAN WITH INEXPENSIVE PCS MORE THAN A YEAR AGO NEC WHICH HOLDS 53 OF THE JAPANESE PC MARKET THE WORLD'S SECONDLARGEST TRIED TO IGNORE ITS RIVALS AT FIRST BUT SOON WAS FORCED TO SLASH ITS PRICES BY MORE THAN HALF SINCE THEN THE US COALITION HAS KEPT UP A STEADY DRUMBEAT OF PRICE REDUCTIONS AND AGGRESSIVE ADVERTISING AIMED AT UNDERMINING NEC'S MARKET DOMINANCE WHILE NEC'S SHARE HAS YET TO SLIP UNDER THE ASSAULT THE WAR OF NERVES IS HAVING AN IMPACT NEC'S MANAGEMENT HAS EVEN RESORTED TO ATTACKING ANALYSTS WHO CRITICIZE THE COMPANY'S STRATEGY NEC CLEARLY THINKS THE NEW ARRANGEMENT IF IT BECOMES A REALITY COULD GIVE THE COMPANY A RARE CHANCE TO SEIZE THE OFFENSIVE WE CAN EXTEND OUR SALES CHANNEL TO DIRECT SALES WHICH NEC DOESN'T HAVE FOR THE MOMENT SAID KATSUICHI TOMITA NEC'S GENERAL MANAGER FOR PC MARKETING PEOPLE WOULD START TO SEE THAT THE PC98 IS THE STANDARD FOR THE DOMESTIC MARKET NEC'S SHARES SHOT UP ON THE NEWS RISING 56 YEN 50 CENTS OR JUST OVER 6 TO CLOSE FRIDAY AT 962 YEN ON THE TOKYO STOCK EXCHANGE DELL OFFICIALS HAVE SO FAR HAD NO COMMENT ON NEC'S ANNOUNCEMENT SAYING THE COMPANY DOES NOT COMMENT ON NEGOTIATIONS UNLESS A DEAL IS APPROVED ON FRIDAY HOWEVER A DELL SPOKESWOMAN IN TOKYO SAID THERE WAS MUCH POSSIBILITY THE COMPANY MIGHT OFFER PCS OTHER THAN THOSE HEWING TO THE IBM STANDARD BECAUSE IT IS DELL POLICY TO SUPPLY WHAT THE CUSTOMER NEEDS NEC HOWEVER MAY HAVE MADE SOME MAJOR MISCALCULATIONS STARTING WITH DELL'S REPUTATION AS A FIERCE LOWCOST COMPETITOR WHAT HAPPENS TO NEC'S PRICING WHEN DELL STARTS SELLING ASKED PETER WOLFF AN ANALYST WITH CS FIRST BOSTON JAPAN LTD WHO EXPECTS DELL'S PRICES TO UNDERCUT NEC SUBSTANTIALLY HAS NEC REALLY THOUGHT THIS THROUGH OTHER ANALYSTS SUCH AS CHUCK GOTO OF SG WARBURG JAPAN INC SAID NEC'S 98SERIES PCS AREN'T LIKELY TO APPEAL TO CONSUMERS OUTSIDE OF THE COMPANY'S TRADITIONAL BASE OF CORPORATE USERS AND PEOPLE WHO ARE UNCOMFORTABLE BUYING COMPUTERS IBMSTYLE COMPUTERS WHICH CAN USE A MUCH BROADER RANGE OF HARDWARE AND SOFTWARE APPLICATIONS MANY FROM OVERSEAS VENDORS TEND TO APPEAL TO THE GROWING POPULATION OF MORE COMPUTERLITERATE USERS IT PROBABLY BUYS NEC SOME TIME BUT IT WON'T IMPACT THEIR MARKET SHARE MUCH MR GOTO SAID OF THE PLAN THEY'RE GOING TO CANNIBALIZE THEIR OWN CUSTOMER BASE RATHER THAN IBMSTYLE USERS IF HISTORY IS ANY GUIDE NEC ISN'T LIKELY TO REACT WELL TO SUCH CRITICISM OF ITS CURRENT STRATEGY AFTER THE JAPAN UNIT OF US MARKETRESEARCH FIRM INTERNATIONAL DATA CORP RELEASED A FORECAST IN OCTOBER THAT PREDICTED NEC'S MARKET SHARE WILL FALL TO 40 BY 1995 NEC PUBLIC RELATIONS MANAGER KAZUHIKO MANDA WROTE TO IDC TO ASK FOR AN APOLOGY WE MUST SAY YOUR REPORT HAS CAUSED US MORE THAN A LITTLE DAMAGE MR MANDA SAID IN HIS DEC 8 LETTER AFTER ASKING IDC TO CONSIDER A LIST OF FACTS THAT PURPORTED TO REFUTE THE IDC REPORT MR MANDA CONTINUED WE WOULD THEN LIKE TO HEAR YOU EXPLAIN THE REPORT TO OUR SATISFACTION AFTER THAT WE WILL CONSIDER HOW TO DEAL WITH YOU AND YOUR COMPANY WE WERE TRYING TO CLARIFY HOW THEY CAME OUT WITH THAT DATA SAID AN NEC SPOKESMAN THEIR RESULTS WERE REALLY RADICAL IT WAS A VERY STRANGE AND UNUSUAL COMPLAINT IDC JAPAN PC ANALYST ATSUO OCHI REPLIED OF COURSE THERE WAS NO NEED FOR US TO APOLOGIZE OUR REPORT WAS THE TRUTH 9401100114 940110 WHO'S NEWS LONGHORN TAPS RIVERA AS PRESIDENT AND CHIEF ATLANTA LONGHORN STEAKS INC WRESTLING WITH A DOWNTURN IN EARNINGS NAMED RICHARD E RIVERA PRESIDENT AND CHIEF EXECUTIVE OFFICER MR RIVERA 47 YEARS OLD HAD BEEN CHIEF EXECUTIVE OF TGI FRIDAY'S INC THE RESTAURANT CHAIN HE SUCCEEDS GEORGE MCKERROW JR 43 LONGHORN'S FOUNDER MR MCKERROW BECOMES CHAIRMAN OF THE BOARD SUCCEEDING HIS FATHER GEORGE MCKERROW SR 68 WHO REMAINS A DIRECTOR IN A STATEMENT THE YOUNGER MR MCKERROW SAID THE MOVE WAS PART OF AN EFFORT TO RETURN THE COMPANY TO A HIGHER LEVEL OF PROFITABILITY AND INCREASE STOCKHOLDER VALUE IN THE THIRD QUARTER OF 1993 LONGHORN WHICH OPERATES 45 RESTAURANTS PRIMARILY IN THE SOUTHEAST REPORTED THAT EARNINGS HAD SLUMPED TO 638000 OR 10 CENTS A SHARE FROM 799000 OR 15 CENTS A SHARE A YEAR EARLIER AT THE TIME MR MCKERROW SAID HE WAS DISAPPOINTED WITH THE RESULTS NOTING THAT REVENUE LEVELS IN SEVERAL OF THE COMPANY'S NEWEST OUTLETS HAD NOT MET EXPECTATIONS 9401100113 940110 WHO'S NEWS EASTEX ENERGY INC EASTEX ENERGY INC HOUSTON BRADLEY K ALFORD 37 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT RISK MANAGEMENT AND CORPORATE PLANNING OF THIS NATURAL GAS COMPANY HE HAD BEEN VICE PRESIDENT FINANCE 9401100112 940110 FOREIGN EXCHANGE NEW YEAR'S DOLLAR RALLY MAY CONTINUE AMID SIGNS OF SUSTAINED US BOOM BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE NEW YEAR'S CELEBRATION AMONG DOLLAR BULLS MAY LAST A LOT LONGER THAN SOME EXPECTED MORE THAN A WEEK INTO 1994 MANY DOLLAR BUYERS ARE STILL CHEERFUL CITING SIGNS THAT THE US ECONOMY'S LATE 1993 BOOM MAY NOT END AS SOON AS MANY ECONOMISTS HAD FORECAST THEY'RE ALSO HEADY OVER CONTINUED ECONOMIC WEAKNESS IN EUROPE AND JAPAN WHICH FURTHER BOLSTERS THE DOLLAR FRIDAY'S NEWS THAT US NONFARM PAYROLLS GREW BY 183000 IN DECEMBER COMPARED WITH AN EXPECTED 225000 OR MORE CAST A SOBERING MOOD OVER THE DOLLAR CAUSING IT TO DROP LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 17273 MARKS AND 11190 YEN DOWN FROM 17445 MARKS AND LITTLE CHANGED FROM 11265 YEN AT THE END OF THE PREVIOUS WEEK'S TRADE ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11165 YEN AND AT 17260 MARKS BUT ELEMENTS OF THE JOBS REPORT SUGGEST THAT THE ECONOMY'S UPTURN IS LESS A FLASH IN THE PAN AND MORE SOMETHING THAT CAN BE CARRIED FORWARD SAID SANDY BATTEN SENIOR ECONOMIST AT CITIBANK ONE EXAMPLE HE SAID IS THAT EARNINGS FOR EMPLOYEES OF ALL TYPES SHOWED GAINS LAST YEAR CONSUMERS WERE SPENDING FASTER THAN THEIR INCOMES WERE GROWING AND ECONOMISTS ASSUMED CONSUMPTION WOULD EVENTUALLY HAVE TO FALL OFF THIS WAS AMONG REASONS FORECASTERS HAD EXPECTED A SLOWING IN THE RECOVERY DURING THE FIRST QUARTER OF 1994 ECONOMISTS LIKE MR BATTEN ALSO LIKE RECENT CONSUMER CONFIDENCE AND DURABLE GOODS REPORTS THEY THINK SUCH DATA HELP BALANCE THE POSSIBLE DRAGS OF HIGHER TAXES AND THE COSTS OF A NATIONAL HEALTHCARE PLAN SO WHILE IT'S NOT LIKELY THE FIRST QUARTER WILL PRODUCE THE BETTERTHAN 4 GAINS IN GROSS DOMESTIC PRODUCT EXPECTED FOR THE FOURTH QUARTER THERE'S ALSO A FEELING THAT THE 2ORLESS GROWTH SCENARIO DEPICTED BY MANY ANALYSTS FOR THIS QUARTER ISN'T GOING TO COME TO PASS THUS THE DOLLAR WILL HOLD IN CURRENCY PLAYERS SAY THE DOLLAR MAY TAKE SOME MORE DIPS BUT IT'S PROBABLY UPWARD BOUND SAID DAVID DE ROSA DIRECTOR FOREIGNEXCHANGE TRADING AT SWISS BANK CORP MANY OF THOSE WHO STILL LIKE THE DOLLAR'S CHANCES FAR INTO THE NEW YEAR DON'T BOTHER WITH MANY OF THE DETAILS IN US ECONOMIC NEWS THEY FIGURE ANY NUMBER OF EUROPEAN ECONOMIC REPORTS IS ENOUGH REASON TO MAINTAIN DOLLAR BULLISHNESS PEOPLE START MOANING ABOUT 3 US GROWTH BUT RELATIVE TO EUROPE THAT'S PRETTY GOOD GROWTH SAID STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGN EXCHANGE AT MERRILL LYNCH DEBT MARKETS GROUP EVEN AS THE DOLLAR FELL LAST FRIDAY A COUPLE OF OUR BIG FUNDAMENTAL PLAYERS WERE IN BUYING EARLY MR GEOVANIS SAID HE ADDED THAT THESE BUYERS WERE THE KIND THAT TEND TO TRADE A LONGTERM OUTLOOK EARL JOHNSON VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IS A MORE AMBIVALENT DOLLAR SUPPORTER BECAUSE HE LOOKS FOR FLOWS OUT OF THE US CAPITAL MARKETS INTO EUROPEAN BONDS TO PUT A CAP ON THE US CURRENCY SOMETIME BY MIDYEAR BUT EVEN HE LOOKS FOR THE DOLLAR TO HOLD AROUND 175 MARKS IN THE FIRST QUARTER AND HIS ESTIMATE HINGES ON A FIRSTQUARTER GDP PREDICTION AT A RESPECTABLE 38 ONE HURDLE TO A CONTINUED DOLLAR RALLY MAY BE THAT SOME MARKET PARTICIPANTS JUMPED TO BUY THE CURRENCY BEFORE IT DROPPED LATE LAST WEEK 9401100111 940110 GLOBAL VIEW CLINTON IS BEING DRAWN INTO A RUSSIAN WEB BY GEORGE MELLOAN PRESIDENT CLINTON'S VISIT TO BELARUS ON HIS CURRENT EUROPEAN TOUR WILL FOCUS ON AMONG OTHER THINGS NUCLEAR NONPROLIFERATION JUDGING FROM AL GORE'S SPEECH IN MILWAUKEE LAST THURSDAY BELARUS WILL GET PRAISE ON THAT ISSUE AND UKRAINE WILL GET PRESSURE BELARUS AGREED LAST FEBRUARY TO BECOME A NONNUCLEAR STATE UKRAINE AND KAZAKHSTAN ARE DRAGGING THEIR FEET ON THE JOINT USRUSSIAN DEMAND THAT THEY TURN THEIR NUKES OVER TO MOTHER RUSSIA CLINTON ADMINISTRATION NONPROLIFERATION POLICY IS BEING CONFOUNDED BY NORTH KOREAN DEFIANCE IRAQI SLEIGHT OF HAND AND IRANIAN DISSEMBLANCE THE PRESIDENT CLEARLY HOPES THAT HE AND BORIS YELTSIN TOGETHER CAN WIN AT LEAST ONE BATTLE THE ASSAULT ON UKRAINE EVEN HAS A CERTAIN SURFACE PLAUSIBILITY IF YOU HAVE THE MUSCLE TO FORCE A STATE TO GIVE UP NUKES WHY NOT DO IT YOU GET ONE LESS NUCLEAR POWER IN THE WORLD BUT WITH HIS TIMID APPROACH TOWARD THE EASTWARD EXPANSION OF NATO MR CLINTON ALREADY IS BEING CALLED OVERLY SENSITIVE TO THE SECURITY CONCERNS OF BORIS YELTSIN AND NOT SENSITIVE ENOUGH TO THOSE OF FORMER SOVIET DOMINIONS HIS POSITION ON THE UKRAINIAN NUKES EVEN THOUGH INHERITED FROM THE BUSH ADMINISTRATION EXPOSES HIM TO A KEY QUESTION IS THE PRESIDENT ON HIS EUROPEAN TOUR RESISTING OR UNCONSCIOUSLY ABETTING THE REBIRTH OF RUSSIAN IMPERIALISM CONSIDER THE UKRAINIAN POINT OF VIEW THEY ONLY HAVE TO LOOK A FEW HUNDRED MILES TO THE SOUTHWEST TO SEE THAT BOSNIA GOT NO HELP FROM THE WEST IN COUNTERING SERBIAN IMPERIALISM WHEN THEY LOOK IN THE OPPOSITE DIRECTION THEY SEE THE RESULTS OF DECEMBER'S RUSSIAN ELECTIONS AND KNOW THAT THE SPIRIT OF REVANCHISM IS ALIVE AND WELL IN RUSSIA THEY ASK THEMSELVES QUITE LEGITIMATELY WHETHER THEY WANT TO BESTOW THEIR 1656 NUCLEAR WARHEADS ON THE COUNTRY THAT MOST THREATENS THEM IMPERIALISM IS NOT ONLY THE THEME SONG OF NUT CASE VLADIMIR ZHIRINOVSKY BUT ALSO IS INCREASINGLY EVIDENT IN RUSSIAN FOREIGN POLICY LAST WEEK THE NEWS FROM THE REPUBLIC OF GEORGIA WAS THAT ITS DEPOSED PRESIDENT ZVIAD GAMSAKHURDIA HAD COMMITTED SUICIDE ON DEC 31 AFTER MANY MONTHS ON THE RUN GEORGIAN INTRIGUES ARE COMPLEX BUT THE WAR IN THAT LITTLE COUNTRY BEARS ALL THE FINGERPRINTS OF AN OLD SOVIET KGB TECHNIQUE FOR KEEPING THE REPUBLICS IN LINE WHEN A REGIONAL LEADER DIDN'T BEHAVE YOU CAUSED TROUBLE ON HIS PATCH AND ENDED IT ONLY WHEN THE VICTIM REPENTED GEORGIA'S CURRENT PRESIDENT FORMER SOVIET FOREIGN MINISTER EDUARD SHEVARDNADZE REPENTED BY BRINGING GEORGIA BACK INTO THE COMMONWEALTH OF INDEPENDENT STATES CIS LO AND BEHOLD THE ABKHAZIAN GUNNERY SUBSIDED ALSO LAST WEEK BELARUS DREW ITSELF CLOSER TO RUSSIA BY SIGNING A DECLARATION OF INTENT TO UNIFY ITS ECONOMY WITH RUSSIA'S THROUGH THE JOINT EMISSION OF RUBLES A DEAL THAT AMONG OTHER THINGS FLUMMOXED RUSSIA'S ECONOMIC REFORMERS MR CLINTON'S STOP IN THE BELARUS CAPITAL OF MINSK ALSO THE HEADQUARTERS CITY OF THE CIS WILL HAVE UNINTENDED SYMBOLISM MR YELTSIN CREATED THE CIS AS HIS SUBSTITUTE FOR THE OLD SOVIET EMPIRE HE BROUGHT DOWN HE WANTS IT TO FUNCTION AS THE FRAMEWORK FOR A LESS FORMALIZED NEW EMPIRE IN WHICH MOSCOW AS ALWAYS WILL BE THE REAL CENTER DID MR CLINTON AND HIS MENTOR ON THINGS RUSSIAN STROBE TALBOTT KNOW THAT THEY SEEM TO BE LENDING US PRESTIGE TO THIS ENTERPRISE UKRAINE IS BEING PRESSED HARD TO BECOME A COMPLIANT CIS PLAYER UKRAINIAN PRESIDENT LEONID I KRAVCHUK STEEPED IN OLD COMMUNIST COMMAND AND CONTROL LORE HAS HOPELESSLY MUDDLED WHAT LITTLE ATTEMPT HE HAS MADE AT ECONOMIC REFORM TAKING ADVANTAGE OF HIS INEPTITUDE THE RUSSIANS HAVE SQUEEZED HIM HARD ON THE PRICE OF OIL ALTHOUGH UKRAINE INHERITED LARGE NUMBERS OF PLANES AND TANKS FROM THE OLD RED ARMY IT IS SHORT ON FUEL ITS PRIMARY SOURCE OF LEVERAGE WITH THE RUSSIANS IS TO HOLD ITS NUCLEAR WARHEADS HOSTAGE IT IS NOT CLEAR THAT MR YELTSIN IN HIS HEART OF HEARTS PARTICULARLY WANTED TO EMBARK ON EMPIRE REBUILDING AT THIS STAGE HE HAS PLENTY OF PROBLEMS IN RUSSIA ITSELF HIS INITIAL REACTION TO THE EASTWARD EXPANSION OF NATO WAS BENIGN PRESUMABLY BECAUSE HE THOUGHT IT WOULD ADD STABILITY TO A POTENTIALLY VOLATILE REGION BUT MR YELTSIN IS NOTHING IF NOT A POLITICIAN AND HE SINCE HAS FOUND IT UNWISE TO STRONGLY RESIST THE DOMESTIC FORCES OF NATIONALISM IMPERIALISM AND REVANCHISM AND HE IS GETTING SO LITTLE COUNTERPRESSURE FROM THE WEST THE SHREWD OPERATIVES OF THE FORMER KGB STILL HAVE MANY LINKS TO BEHINDTHESCENES POWER BROKERS IN THE FORMER SOVIET REPUBLICS AND FORMER WARSAW PACT NATIONS THEY ARE MOST LIKELY NOT YET UNDER EFFECTIVE PRESIDENTIAL CONTROL IT IS PRIMARILY FOR THIS REASON THAT POLAND THE CZECH AND SLOVAK REPUBLICS HUNGARY AND BULGARIA HAVE PLEADED WITH MR CLINTON TO GRANT THEM NATO ADMISSION THEY KNOW FROM LONG EXPERIENCE THAT THE PRINCIPLE TOOL OF RUSSIAN IMPERIALISM WAS SUBVERSION THEY ARE MORE CONCERNED ABOUT INTERNAL STABILITY THAN ANY EXTERNAL THREAT MR CLINTON'S RESPONSE HAS BEEN TO OFFER THEM A HALF MEASURE HIS SOCALLED PARTNERSHIP FOR PEACE CENTRAL EUROPEAN MILITARY PEOPLE WILL BE ABLE TO WORK WITH NATO BUT THEY WILL NOT BE MEMBERS THAT DOES NOTHING TO QUIET FEARS OF BEING DRAWN BACK INTO THE RUSSIAN ORBIT BY FORMER COMMUNISTS WITH POLITICAL CONNECTIONS TO MOSCOW THE NEAREST MR CLINTON AND MR TALBOTT HAVE COME TO AN ANTIIMPERIALIST POLICY FOR THE FORMER SOVIET UNION WAS TO DRAFT PRESIDENTIAL DIRECTIVE 13 IT CALLED FOR UN PEACEKEEPING IN SUCH TROUBLE SPOTS AS GEORGIA NAGORNOKARABAKH AND MOLDOVA BUT THIS POLICY WAS QUICKLY OVERWHELMED BY A REALIZATION THAT THE UNITED NATIONS IS A WEAK REED FOR EITHER PEACEKEEPING OR IMPLEMENTING US POLICY IT WENT BACK TO THE DRAWING BOARDS THE CLINTONITES TURNED TO PARTNERSHIP FOR PEACE TO GIVE FORMER COMMUNIST SATELLITES SOME COMFORT WITHOUT DRAWING A LINE IN THE SAND THE US CONTINUES ECONOMIC AID TO RUSSIA TO THE GENERAL NEGLECT OF OTHER FORMER SOVIET REPUBLICS OF COURSE SOME THINGS NEED TO BE CONSIDERED FOR ONE MR YELTSIN IS OBVIOUSLY NOT AS WEAK AND VULNERABLE AS HE IS SO OFTEN PORTRAYED HE HAS JUST WON HIMSELF A NEW CONSTITUTION WITH VERY STRONG PRESIDENTIAL POWERS MOREOVER US TIMIDITY HAS NOT QUIETED THE IMPERIALISTS OR DISCOURAGED THE KGB THEY SEEM TO BE FEELING THEIR OATS FINALLY HISTORY SUGGESTS THAT THE US FARES BETTER WITH THE RUSSIANS WITH A FIRM LINE THAN BY TIPTOEING AROUND THEIR SUPPOSED ACUTE SENSITIVITIES THE POINT OF IT ALL EASE UP ON UKRAINE AND TAKE A HARDER LOOK AT THE NEOIMPERIALISM OF RUSSIA IT IS THERE THAT THE REAL THREAT TO THE STABILITY OF EUROPE LIES 9401100110 940110 TECHNOLOGY IBM SEEKS SALE OF MUTUAL FUND FOR EMPLOYEES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS WEIGHING THE SALE OF THE 680 MILLION MUTUALFUND GROUP IT RUNS FOR EMPLOYEES AS IT CONTINUES A DRIVE TO SHED OPERATIONS THAT DON'T RELATE TO ITS CORE TECHNOLOGY BUSINESSES FREDERICK ZUCKERMAN IBM'S TREASURER SAID IN AN INTERVIEW THAT THE COMPUTER MAKER IS TRYING TO GET OUT OF NONSTRATEGIC BUSINESSES AND THAT THE MUTUAL FUND IS ONE OF THEM IBM SHOULDN'T BE IN THE MUTUAL FUND BUSINESS HE SAID ALTHOUGH HE DECLINED TO SPECULATE ON OTHER CANDIDATES FOR DIVESTMENT IBM WOULDN'T COMMENT ON HOW MUCH IT EXPECTED THE SALE TO GENERATE ALTHOUGH EXECUTIVES SAID BANKS ARE THE PRIMARY SUITORS ANALYSTS SPECULATED THAT THE BUSINESS COULD FETCH ABOUT 10 MILLION ROBERT TALBOT AN IBM CREDIT CORP VICE PRESIDENT WHO OVERSEES THE MUTUAL FUND SAID THE SALE WON'T GO THROUGH UNLESS IBM GETS AN ATTRACTIVE OFFER LEHMAN BROTHERS IS HANDLING THE BIDS IBM STARTED THE FUND IN 1990 AS A BENEFIT FOR EMPLOYEES TO HELP THEM INVEST FOR RETIREMENT IT HAS GROWN TO 680 MILLION IN ASSETS FROM 8 MILLION IN THE FIRST YEAR AS TENS OF THOUSANDS OF EMPLOYEES TOOK EARLY RETIREMENT OFFERS UNDER IBM'S MASSIVE RESTRUCTURING IT HAS FIVE INDEX FUNDS PEGGED TO VARIOUS FINANCIAL BENCHMARKS SUCH AS THE STANDARD & POOR'S 500 SUCH FUNDS HAVE BECOME POPULAR BECAUSE THEY ARE INEXPENSIVE TO MANAGE AND HAVE SHOWN DECENT RESULTS COMPARED WITH FUNDS MANAGED BY SPECIAL STOCK PICKERS MR TALBOT SAID THAT WHEN THE FUND WAS STARTED IBM BELIEVED IT COULD RUN THE FUND MORE EFFICIENTLY BY LEVERAGING THE SKILLS OF ITS RETIREMENTFUND ADMINISTRATORS ONLY 10 PEOPLE OUT OF IBM CREDIT CORP'S 1000 EMPLOYEES ARE INVOLVED WITH THE MUTUAL FUND CUSTOMER SERVICING AND CUSTODIAL WORK IS CONTRACTED OUT IBM CREDIT CORP HAS 10 BILLION IN TOTAL ASSETS MOSTLY DERIVED FROM CUSTOMER FINANCING OF IBM PRODUCTS AND OTHER BRANDS IBM STRESSED THAT NO OTHER PART OF IBM CREDIT CORP IS FOR SALE AT THIS TIME 9401100109 940110 INTERNATIONAL SIEMENS NIXDORF SELECTS NEW EXECUTIVE IN MOVE TO REVITALIZE COMPUTER MAKER BY ES BROWNING AND RICHARD L HUDSON STAFF REPORTERS OF THE WALL STREET JOURNAL GERMAN COMPUTER MAKER SIEMENS NIXDORF INFORMATIONSSYSTEME AG IS FINETUNING TOP MANAGEMENT IN AN EFFORT TO PULL ITSELF OUT OF FINANCIAL TROUBLE SIEMENS NIXDORF A UNIT OF GERMAN INDUSTRIAL GIANT SIEMENS AG SAID IT PLANS TO HIRE A NEW SENIOR EXECUTIVE GERHARD SCHULMEYER FROM SWISSSWEDISH HEAVY EQUIPMENT MAKER ABB ASEA BROWN BOVERI LTD SOME INDUSTRY OBSERVERS SAID MR SCHULMEYER'S ARRIVAL COULD PRESAGE A MANAGEMENT SHAKEUP AT SIEMENS NIXDORF LEAVING HIM AS THE EFFECTIVE BOSS CHARGED WITH TURNING THE COMPANY AROUND SIEMENS AND MR SCHULMEYER REFUSED TO COMMENT ON HIS PRECISE NEW ROLE I WON'T GO THERE TO WASH THEIR CARS AS YOU CAN IMAGINE THE 55YEAROLD MR SCHULMEYER SAID IN A TELEPHONE INTERVIEW SIEMENS WILL ANNOUNCE MORE DETAILS NEXT WEEK AND I DON'T WANT TO PREEMPT THEM SOME ANALYSTS SAID THAT ANY CHANGE AT SIEMENS NIXDORF WAS LIKELY TO BE GRADUAL FIRING ANYONE WOULD BE TOO DISRUPTIVE AT A CONSERVATIVE GERMAN MANAGEMENTBYCONSENSUS COMPANY LIKE SIEMENS SAID ANALYST GEORGE VERGHESE OF DEUTSCHE BANK SIEMENS'S STYLE WOULD BE TO BRING HIM IN JUST BELOW THE TOP LEVEL AND THEN PROMOTE HIM LATER ON IF NEEDED HE SAID YET UNDER THE PARENT COMPANY'S NEW CHIEF EXECUTIVE HEINRICH VON PIERER THAT MANAGEMENT MOLD HAS BEEN BROKEN APPOINTED IN 1992 THE TOUGHMINDED LAWYER LAST YEAR SURPRISED ANALYSTS BY CUTTING 12000 JOBS ONE OF THE LARGEST REDUCTIONS EVER AT THE MUNICHBASED ELECTRONICS AND ELECTRICALPRODUCTS COMPANY AND HE SET A 1995 DEADLINE FOR THE SICK COMPUTER SUBSIDIARY TO START BREAKING EVEN INDEED BUSINESS HAS IMPROVED SOMEWHAT AT SIEMENS NIXDORF THE UNIT'S LOSS OF 419 MILLION MARKS 2426 MILLION IN THE LATEST FISCAL YEAR WAS 94 MILLION MARKS NARROWER THAN IN THE PREVIOUS YEAR AFTER INTERNATIONAL BUSINESS MACHINES CORP SIEMENS'S COMPUTER SUBSIDIARY IS TIED WITH DIGITAL EQUIPMENT CORP AS EUROPE'S SECOND BIGGEST IT'S ALSO ONE OF THE SICKEST TO TRIM LOSSES SIEMENS NIXDORF BY LAST SEPTEMBER HAD CUT 9200 JOBS FROM ITS 1990 PEAK WORK FORCE OF 52500 AND HAS SLATED ANOTHER 5100 CUTS FOR THIS YEAR THE COMPANY'S PROBLEMS BECAME ACUTE IN 1990 WHEN SIEMENS'S THENMARGINALLY PROFITABLE COMPUTER BUSINESS ACQUIRED ITS MAIN GERMAN RIVAL NIXDORF COMPUTER AG BUT THE MERGER WAS A MANAGEMENT NIGHTMARE WITH NIXDORF'S ENTREPRENEURIAL COMPANY CULTURE CLASHING WITH SIEMENS'S BUREAUCRACY ASKED IF MR SCHULMEYER WILL REPLACE THE COMPUTER UNIT'S TOP EXECUTIVE MANAGEMENT BOARD CHAIRMAN HANSDIETER WIEDIG A SIEMENS SPOKESMAN REFUSED TO COMMENT MR WIEDIG COULDN'T BE REACHED FOR COMMENT MR SCHULMEYER HAS BEEN CHIEF EXECUTIVE OF ABB'S US UNIT ABB INC WHICH MAKES AND SELLS HEAVY POWER GENERATION EQUIPMENT RAILROAD TRAINS AND INDUSTRIAL SYSTEMS SUCH AS ROBOTICS HE WILL BE SUCCEEDED AT ABB INC BY ROBERT DONOVAN 52 WHO HAS BEEN WITH ABB ONLY ABOUT 18 MONTHS MR DONOVAN WHO WORKED PREVIOUSLY FOR US POWER EQUIPMENT MAKERS HAS HEADED ABB INC'S POWER PLANT SYSTEMS BUSINESS MR DONOVAN SAID ABB INC'S REVENUES STAGNATED AT ABOUT 5 BILLION LAST YEAR AND ORDERS DECLINED HE PROJECTED A BIG PICKUP IN ORDERS AND A MORE MODERATE BOOST IN REVENUES IN THE CURRENT YEAR 9401100108 940110 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ESMOR CORRECTIONAL SERVICES INITIAL 833333 SHARES VIA JANNEY MONTGOMERY SCOTT INC HEILEMAN ACQUISITION CO 150 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA BT SECURITIES CORP JP REALTY INC INITIAL 113 MILLION SHARES UP FROM 96 MILLION VIA MERRILL LYNCH & CO PAPA JOHN'S INTERNATIONAL INC 12 MILLION SHARES VIA MONTGOMERY SECURITIES ROGERS CABLESYSTEMS LTD C250 MILLION OF SENIOR SECURED NOTES VIA MERRILL LYNCH SCICLONE PHARMACEUTICALS INC TWO MILLION SHARES VIA MONTGOMERY STANFORD TELECOMMUNICATIONS INC 13 MILLION SHARES VIA OPPENHEIMER & CO STEWART ENTERPRISES INC 24 MILLION OF CLASS A COMMON SHARES VIA BEAR STEARNS & CO WONDERWARE CORP TWO MILLION SHARES VIA MONTGOMERY AND HAMBRECHT & QUIST INC UNIVERSITY OF CALIFORNIA 2968 MILLION OF REFUNDING REVENUE BONDS VIA COMPETITIVE BID WAKE COUNTY NC 156 MILLION OF IMPROVEMENT BONDS VIA COMPETITIVE BID ALBUQUERQUE NM 130 MILLION OF JOINT WATER AND SEWER SYSTEM REVENUE AND REFUNDING BONDS VIA A SMITH BARNEY SHEARSON INC GROUP ANCHORAGE ALASKA 134 MILLION OF TELEPHONE REVENUE REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY 108 MILLION OF CERTIFICATES OF PARTICIPATION VIA A GOLDMAN SACHS & CO GROUP HARRIS COUNTY TEXAS 550 MILLION OF TOLL ROAD SENIORLIEN REVENUE BONDS VIA A LEHMAN BROTHERS GROUP KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY 125 MILLION OF HOSPITAL REVENUE BONDS VIA A GOLDMAN SACHS GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 380 MILLION OF REVENUE BONDS VIA A JP MORGAN SECURITIES INC GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 1054 MILLION OF ELECTRIC REVENUE BONDS VIA A GOLDMAN SACHS GROUP OHIO BUILDING AUTHORITY 316 MILLION OF REFUNDING REVENUE BONDS VIA AN AG EDWARDS & SONS INC GROUP REEDY CREEK IMPROVEMENT DISTRICT FLA 241 MILLION OF REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP TEXAS MUNICIPAL POWER AGENCY 175 MILLION OF SERIES 1994 REFUNDING REVENUE BONDS VIA A MERRILL LYNCH GROUP 9401100107 940110 ABREAST OF THE MARKET STRATEGISTS PONDER SHOCKS THAT COULD KILL BULL RUN BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL LIKE MANY INVESTMENT STRATEGISTS HUGH JOHNSON OF FIRST ALBANY MAKES A STRONG CASE FOR A CONTINUED CLIMB IN STOCK PRICES ALL THE INGREDIENTS ARE THERE STEADY ECONOMIC GROWTH IMPROVING CORPORATE EARNINGS LOW INTEREST RATES AND SUBDUED INFLATION JUST LOOK AT THE RECORD ADVANCES CHALKED UP LAST WEEK THEN WHY IS MR JOHNSON SO UNEASY THE POSSIBILITIES ARE NEARLY ENDLESS AND IT'S LIKELY THAT WHATEVER UPSETS THE APPLE CART WILL BE SOMETHING NO ONE EVEN THOUGHT ABOUT NEVERTHELESS ANALYSTS SUCH AS MR JOHNSON ARE CONSTANTLY SCANNING THE ECONOMIC AND POLITICAL HORIZONS FOR SIGNS OF DANGER THE REASON WE'VE HAD THIS BULL MARKET IS BECAUSE SAVERS HAVE BEEN WILLING TO INCREASE THEIR RISK AND SHIFT FROM CASH TO STOCKS BONDS AND MUTUAL FUNDS MR JOHNSON SAYS IF AN EVENT OCCURS THAT UNDERMINES THEIR CONFIDENCE IN THE ECONOMY THE FINANCIAL MARKETS OR THE POLITICAL SYSTEM THEY MAY STOP MAKING THE SHIFT AT THE TOP OF MR JOHNSON'S LIST OF POTENTIAL SHOCKS IS A POLITICAL POTHOLE RIGHT AT HOME HE WORRIES ABOUT FURTHER DEVELOPMENTS IN THE WHITEWATER CONTROVERSY PLAGUING PRESIDENT CLINTON HE THINKS A DEEPER INVESTIGATION IS WARRANTED AND MAY YIELD TROUBLING REVELATIONS THAT COULD TURN THE ISSUE INTO A WHITEWATERGATE I DON'T BELIEVE THE REPUBLICAN LEADERSHIP WILL LET THIS ONE GO WITHOUT A FULL EXPLANATION MR JOHNSON SAYS WHAT REALLY WORRIES ME IS IT COULD BE A POLITICAL EVENT OF THE SORT THAT COULD DISRUPT THIS BULL MARKET MR JOHNSON STOPS SHORT OF PREDICTING THAT THE BULL MARKET WOULD END IF THE PRESIDENT FINDS HIMSELF IN A DEEP POLITICAL HOLE BUT A DOWNTURN OF 8 TO 12 IS EASILY POSSIBLE HE SAYS I BELIEVE IT WILL BE JUST A CORRECTION AND NOT THE START OF A BEAR MARKET BECAUSE I DON'T BELIEVE IT WOULD DERAIL THE RECOVERY IN THE ECONOMY OVERSEAS MR JOHNSON SEES A POSSIBLE JOLT FROM THE FORMER SOVIET UNION IF THE NEW RIGHT WING WINS MORE SUPPORT IN RUSSIA THAN IT ALREADY HAS THAT COULD BE VERY FRIGHTENING AND DESTABILIZING HE SAYS FURTHER TURMOIL IN RUSSIA COULD LAY WASTE TO PARTS OF THE CLINTON ADMINISTRATION'S PLANNED DEFENSE CUTS AND THAT WOULD UNDERMINE DEFICITREDUCTION EFFORTS BATTERING THE BOND MARKET AND IN TURN THE STOCK MARKET MR JOHNSON ARGUES HE SAYS THAT PHASEDOUT CUTS IN DEFENSE SPENDING ACCOUNT FOR MORE THAN 20 OF THE CLINTON DEFICITREDUCTION PACKAGE SO A PROBLEM IN RUSSIA MEANS WE'D HAVE TO RETHINK REDUCTIONS IN DEFENSE SPENDING AND THEREFORE RAISE QUESTIONS ABOUT THE DURABILITY OF THE CLINTON ECONOMIC PLAN HE SAYS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER BELIEVES IT'S TIME TO START THINKING ABOUT POTENTIAL SHOCKS PRECISELY BECAUSE MARKET AND ECONOMIC CONDITIONS LOOK SO GOOD THERE'S NO QUESTION IT'LL BE A GOOD YEAR FOR CORPORATE PROFITS MR METZ SAYS BUT ALL THAT IS ALREADY IN THE MARKET NONE OF THE POSSIBLE NEGATIVES HAVE BEEN FACTORED IN THAT'S THE REASON THE MARKET IS SO VULNERABLE CHIEF AMONG MR METZ'S WORRIES IS AN INFLATION SCARE HE SEES COMMODITIES PRICES RISING PARTLY BECAUSE OF AN EXPECTED SLOWDOWN IN EXPORTS FROM THE FORMER SOVIET UNION EXPORTS FROM THE AREA HAD SURGED BECAUSE OF A NEED FOR FOREIGN CURRENCY AND BECAUSE OF SHRINKING DOMESTIC DEMAND AMID AN ECONOMIC SLOWDOWN RISING OIL PRICES ALSO COULD CONTRIBUTE TO A JUMP IN INFLATION MR METZ ARGUES THE GOOD NEWS IS OUT ON OIL HE SAYS IT ONLY GOES UP FROM HERE MR METZ GOES SO FAR AS TO SAY HE CAN SEE EXTREME MUSLIM FUNDAMENTALISTS SEIZING POWER IN EGYPT THIS YEAR THAT BRINGS INTO RISK ALL OF THE PERSIAN GULF AND THE SECURITY OF OIL SUPPLIES FROM OPEC HE ASSERTS AN INFLATION SCARE ALONG WITH A LESS ATTRACTIVE BOND MARKET COULD CAUSE LONGTERM INTEREST RATES TO SPIKE UP AND THAT COULD ROIL STOCK PRICES MR METZ CONTENDS IN HIS SCENARIO THE RESULT WILL BE A MAJOR STOCK MARKET CORRECTION OF 15 TO 30 IN THE FIRSTQUARTER A FAR MORE SANGUINE VIEW IN THE DISCUSSION COMES FROM JEFFREY M APPLEGATE DIRECTOR OF EQUITY RESEARCH AT CS FIRST BOSTON HE CONCEDES THAT AWFUL SHOCKS ALWAYS ARE LURKING BUT HE ARGUES THAT THOSE SHOCKS ALONE WOULD NOT BE THOROUGHLY DETRIMENTAL TO THE STOCK MARKET A BEAR MARKET IS LIKELY ONLY IF A JOLT IS OF SUCH MAGNITUDE THAT IT PLUNGES THE ECONOMY INTO RECESSION MR APPLEGATE SAYS THE ONLY WAY TO GET TO A RECESSION IS IF WE GET A DOUBLING IN OIL PRICES HE SAYS ADDING THAT CHANCES OF THAT ARE REMOTE AND FOR A SEVERE CORRECTION STOPPING SHORT OF A BEAR MARKET AN UNFAVORABLE CHANGE IN THE TREND OF GLOBAL ECONOMIC POLICY IS NEEDED THAT MIGHT BE ANYTHING FROM THE GERMAN BUNDESBANK SUDDENLY DECIDING THAT IT WON'T CUT INTEREST RATES FURTHER TO THE JAPANESE GOVERNMENT REFUSING TO TAKE STEPS TO BOLSTER THE ECONOMY BOTH OF WHICH MR APPLEGATE DEEMS UNLIKELY HE CONCEDES THAT SOME OVERSEAS MARKETS PARTICULARLY EMERGING MARKETS ARE RIPE FOR SHARP DECLINES AFTER SKYROCKETING LAST YEAR BUT EVEN A PLUNGE IN MEXICAN STOCK PRICES AMID THE COUNTRY'S PEASANT INSURRECTION OR A COLLAPSE OF HONG KONG'S ROARING STOCK MARKET ISN'T LIKELY TO RATTLE US INVESTORS MR APPLEGATE SAYS TO SAY HONG KONG'S INTEGRATION INTO THE CHINESE POLITICAL ECONOMY COMING IN 1997 WILL BE A PIECE OF CAKE IS INCORRECT HE SAYS BUT DOES THAT MEAN IT WILL REVERBERATE IN A HIGHLY NEGATIVE WAY FOR US STOCKS I DON'T THINK SO THE DOW JONES INDUSTRIAL AVERAGE SHOT TO ITS THIRD STRAIGHT RECORD AMID SOARING BOND PRICES FOR THE WEEK THE DOW JONES INDUSTRIALS WERE UP 6668 OR 18 THE S&P 500 INCREASED 345 OR 07 AND THE NASDAQ COMPOSITE ADDED 614 OR 08 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 084 TO 11249 NEWS OF A SMALLERTHANEXPECTED JUMP IN NONFARM PAYROLLS IN DECEMBER SET OFF A BUYING SPREE IN THE BOND MARKET WHICH CARRIED OVER TO STOCKS THE TREASURY'S BENCHMARK 30YEAR BOND SURGED MORE THAN 1 5/8 POINTS OR MORE THAN 1625 FOR A BOND WITH A 1000 FACE VALUE WITH THE YIELD TUMBLING TO 622 STOCK INVESTORS PILED INTO THE MARKET IN ANOTHER DAY OF HEAVY TRADING LAST WEEK'S VOLUME ON THE NEW YORK STOCK EXCHANGE WAS THE SECOND HIGHEST IN HISTORY AT 17 BILLION SHARES THE HEAVIEST VOLUME WAS DURING THE WEEK OF THE OCT 19 1987 CRASH WHEN 23 BILLION SHARES CHANGED HANDS BLOCKBUSTER ENTERTAINMENT SLUMPED 1 5/8 TO 28 1/4 BEFORE ITS TRADING WAS HALTED ON NEWS THAT IT AGREED TO AN 84 BILLION MERGER WITH VIACOM THE COMBINATION CLEARED THE WAY FOR VIACOM TO SWEETEN ITS BID FOR PARAMOUNT COMMUNICATIONS AND RAISE THE CASH PORTION OF ITS OFFER TO 105 A SHARE BLOCKBUSTER DIDN'T RESUME TRADING ON THE BIG BOARD IT TRADED AT 28 1/2 AFTER HOURS ON REUTERS'S INSTINET SYSTEM EVEN WITH THE HALT BLOCKBUSTER WAS THE MOST ACTIVE BIG BOARD ISSUE WITH VOLUME OF SEVEN MILLION SHARES PARAMOUNT WAS DOWN 3/4 TO 79 1/4 ON THE BIG BOARD BEFORE THE HALT IT LAST TRADED ON INSTINET AFTER HOURS AT ABOUT 78 7/8 QVC NETWORK NASDAQ A RIVAL BIDDER FOR PARAMOUNT FINISHED BEFORE THE HALT AT 40 5/8 UP 1 1/8 IT TRADED AT 40 1/4 ON INSTINET AFTER THE MARKET CLOSED VIACOM CLASS B AMEX ENDED AT 41 DOWN 1 3/4 VIACOM DIDN'T TRADE ON INSTINET IN INITIAL AFTERHOURS DEALINGS MANY INTERESTRATESENSITIVE FINANCIAL STOCKS REBOUNDED AFTER SLUMPING EARLIER IN THE WEEK IN REACTION TO THE BOND MARKET'S SLIDE AMONG BANKS AND INSURERS WELLS FARGO JUMPED 3 1/8 TO 130 3/4 CITICORP WAS UP 1 TO 37 7/8 BANKAMERICA ADDED 1 3/8 TO 47 3/4 AND GENERAL RE CLIMBED 2 1/2 TO 105 SHARES OF BROKERAGE FIRMS SURGED MORGAN STANLEY WAS UP 3 3/8 TO 72 5/8 MERRILL LYNCH GAINED 2 TO 42 1/8 AND CHARLES SCHWAB ROSE 1 3/4 TO 32 1/8 THE DOW JONES UTILITIES AVERAGE ALSO SENSITIVE TO INTEREST RATES REBOUNDED 178 TO END AT 22298 AFTER SKIDDING EARLY IN THE WEEK TO ITS LOWEST LEVEL IN MORE THAN A YEAR GOLDEN WEST FINANCIAL SURGED 4 1/2 TO 43 3/4 ITS PRESIDENT HERBERT M SANDLER TOOK A 630 MILLION OFFER TO ACQUIRE CALIFORNIA FEDERAL BANK DIRECTLY TO KEY SHAREHOLDERS OF THAT COMPANY AFTER AN OVERTURE TO THE BOARD OF THE TROUBLED OAKLAND CALIF THRIFT WAS REBUFFED CALFED ROSE 1/4 TO 16 3/8 RITE AID JUMPED 1 1/2 TO 18 5/8 AFTER THE CAMP HILL PA COMPANY DISCLOSED A RESTRUCTURING PLAN AND SAID IT WILL BUY BACK AS MANY AS 22 MILLION SHARES OF ITS COMMON STOCK RITE AID WILL SELL 200 OF ITS DRUGSTORES AND SHED ITS NONCORE BUSINESSES THE COMPANY'S BUYBACK WILL BE MADE THROUGH A DUTCH AUCTION TENDER OFFER IT WILL ACCEPT OFFERS AT PRICES RANGING FROM 16 TO 1850 9401100106 940110 POLITICS & POLICY GORE MANS THE WHITEWATER RAMPARTS AS MOYNIHAN JOINS PRESIDENT'S CRITICS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON VICE PRESIDENT AL GORE ASSERTED THAT PRESIDENT CLINTON HAS BEEN UNFAIRLY ATTACKED FOR AN ALLEGED COVERUP REGARDING AN INVESTMENT IN A FAILED ARKANSAS REALESTATE VENTURE ON CBS NEWS' FACE THE NATION MR GORE SEVERAL TIMES LASHED OUT AT REPUBLICANS FOR CRITICIZING THE PRESIDENT EVEN AS MR CLINTON WAS ATTENDING HIS MOTHER'S FUNERAL SERVICE BUT THE GOP CRITICS WERE JOINED YESTERDAY BY SEN DANIEL MOYNIHAN OF NEW YORK A LEADING CONGRESSIONAL DEMOCRAT WHO SAID ON NBC NEWS' MEET THE PRESS THAT MR CLINTON IS GIVING THE APPEARANCE OF A STONEWALL THE PRESIDENT HAS NOTHING TO HIDE THE SENATOR SAID AND NOTHING SHOULD BE HIDDEN MR CLINTON SHOULD RELEASE ALL THE RELATED PAPERS AND HAVE ATTORNEY GENERAL JANET RENO NAME A SPECIAL PROSECUTOR TO INVESTIGATE THE MATTER HE SAID GET SOME GOOD LAWYER WORKING ON THAT ISSUE WHILE WE GO AHEAD ON OTHER THINGS SEN MOYNIHAN SAID MR GORE SAID HOWEVER THAT ANY EVIDENCE OF WRONGDOING IN ORDER TO JUSTIFY THE NAMING OF A SPECIAL PROSECUTOR IS LACKING HE ALSO CONTENDED THAT REPUBLICANS FINDING IT DIFFICULT TO CRITICIZE THE PRESIDENT'S POLICIES ESPECIALLY AS THE ECONOMY IMPROVES HAVE SEIZED ON THE WHITEWATER ISSUE FOR POLITICAL REASONS THE DAY THAT PRESIDENT CLINTON WAS BURYING HIS MOTHER IN ARKANSAS THE OPPOSITION WAS ON THE AIRWAVES ATTACKING FEROCIOUSLY EVEN THOUGH THEY ACKNOWLEDGE THERE IS NO CREDIBLE EVIDENCE OF WRONGDOING THE VICE PRESIDENT SAID WHITE HOUSE ADVISER DAVID GERGEN HAD PREVIOUSLY MADE A SIMILAR CHARGE OF GOP INSENSITIVITY TO THE DEATH OF MR CLINTON'S MOTHER FOLLOWING MR GORE'S REMARKS SENATE REPUBLICAN LEADER ROBERT DOLE ONE OF THOSE CRITICIZING MR CLINTON LAST WEEK SAID GOP CALLS FOR A SPECIAL COUNSEL WEREN'T UNSEEMLY NOTING THAT HE SEN DOLE PRAISED THE PRESIDENT'S MOTHER ON THURSDAY BUT THE KANSAS SENATOR ALSO SAID MUCH OF THE WHITEWATER CONTROVERSY HAS BEEN CAUSED BY WHITE HOUSE MISSTATEMENTS OMISSIONS OF FACT AND CONTRADICTORY PUBLIC ANNOUNCEMENTS THE REPUBLICANS HAVE CHARGED THAT MR CLINTON IS HOLDING BACK ON PAPERS CONCERNING HIS AND HILLARY RODHAM CLINTON'S INVESTMENT IN THE VENTURE WHITEWATER DEVELOPMENT CORP WHILE HE WAS GOVERNOR OF ARKANSAS THE JUSTICE DEPARTMENT IS LOOKING AT WHITEWATER AS PART OF A BROADER CRIMINAL AND CIVIL INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN A FAILED LITTLE ROCK THRIFT OWNED BY JAMES MCDOUGAL WHO WAS THE CLINTONS' BUSINESS PARTNER IN WHITEWATER AND A POLITICAL SUPPORTER OF THEN GOV CLINTON MR MCDOUGAL IN AN INTERVIEW FRIDAY WITH THE ASSOCIATED PRESS SAID THAT HIS BUSINESS DEALINGS IN NO WAY BENEFITED THE CLINTONS NOR DID HE BENEFIT FROM HIS ASSOCIATION WITH THEM HE SUPPORTED THE CLINTONS' POSITION THAT THEY DID NOTHING WRONG BUT HE TOLD AP THAT HE BELIEVES THE CLINTONS MAY HAVE LOST FAR LESS ON THE WHITEWATER PARTNERSHIP WITH HIM THAN THE 68900 THE PRESIDENTIAL CAMPAIGN CLAIMED IN 1992 FEDERAL INVESTIGATORS ARE REPORTEDLY TRYING TO DETERMINE WHETHER MADISON FUNDS WERE USED DURING A FUNDRAISER TO PAY OFF CLINTON'S GUBERNATORIAL CAMPAIGN DEBTS AND WHETHER WHITEWATER FUNDS WERE USED TO PAY OFF PERSONAL DEBTS OF THE CLINTONS MR MCDOUGAL SAID NO WHITEWATER FUNDS WERE USED FOR THAT PURPOSE HE SAID IT WOULD HAVE BEEN IMPOSSIBLE TO DIVERT S&L FUNDS TO PAY OFF THE CAMPAIGN DEBTS WITHOUT HAVING THEM SHOWING UP ON THE BOOKS SEPARATELY JUSTICE DEPARTMENT OFFICIALS SAID THAT THE STATUTE OF LIMITATIONS ON PROSECUTING CRIMES THAT MAY BE RELATED TO MADISON GUARANTY WON'T EXPIRE FOR MORE THAN FIVE YEARS ILLINOIS REP BOB MICHEL WROTE TO ATTORNEY GENERAL JANET RENO FRIDAY ASKING THE DEPARTMENT TO SEEK A WAIVER OF THE STATUTE OF LIMITATIONS FROM PRESIDENT CLINTON SO THAT AN INVESTIGATION CAN BE FULLY AND PROPERLY CONDUCTED MR MICHEL THE HOUSE GOP LEADER SAID THE STATUTE OF LIMITATIONS WOULD EXPIRE IN MARCH FIVE YEARS AFTER THE RESOLUTION TRUST CORP TOOK OVER THE LITTLE ROCK THRIFT BUT JUSTICE DEPARTMENT SPOKESMAN CARL STERN SAID THERE IS NO STATUTE OF LIMITATIONS PROBLEM BECAUSE THERE IS A 10YEAR PROSECUTION PERIOD FOR BANKINGRELATED CRIMES TWICE THE LENGTH FOR OTHER FEDERAL OFFENSES 9401100105 940110 SMALL STOCK FOCUS GOLD ISSUES LOOK GOOD TO SOME INVESTORS AS METAL'S PRICE GETS IN SIGHT OF 400 BY WARREN GETLER AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL WITH GOLD PRICES ONCE AGAIN FLIRTING WITH 400 AN OUNCE SOME SAVVY INVESTORS ARE BEGINNING TO FOCUS ON SMALLCAPITALIZATION GOLD STOCKS AS AN ALTERNATIVE TO THE BIG GOLD SHARES THAT LAST YEAR POSTED RADIANT RETURNS BUT EVEN FANS OF SOME SMALL GOLD ISSUES ADVISE CAUTION THE STOCKS CAN BE EXTREMELY VOLATILE CAPABLE OF IMPLODING AT ANY SIGN OF TROUBLE SUCH AS EXPLORATION ACREAGE'S TURNING UP DEVOID OF ECONOMICALLY ACCESSIBLE ORE AND SHOULD GOLD PRICES ONCE AGAIN HEAD SOUTH SECONDTIER GOLD STOCKS WILL TAKE A BEATING BUT AS LONG AS GOLD PRICES ARE FIRMING SMALLCAP GOLD COMPANIES WHICH GENERALLY LABOR UNDER HIGHER COSTS OF PRODUCTION THAN THE INDUSTRY'S BIG STALWARTS BECOME MORE ATTRACTIVE A SUSTAINED RISE IN PRICES ABOVE 400 AN OUNCE COULD TRIGGER SOME EXPLOSIVE UPWARD MOVES AS A RESULT OF LEVERAGE COMPANIES WITH THE HIGHEST COST STRUCTURE GENERALLY WILL SEE THEIR EARNINGS GO UP BY A HIGHER PERCENTAGE FOR EACH UPWARD MOVE IN THE GOLD PRICE SAYS LEANNE BAKER A GOLD EQUITY ANALYST WITH SALOMON BROTHERS HER ADVICE FOR THOSE WILLING TO BET ON THE HIGHRISK SECTOR IS TO STICK WITH SMALLCAP GOLD COMPANIES THAT BOAST PROVEN RESERVES AND MANAGEMENT WITH TRACK RECORDS ESTABLISHED GOLDMINING COMPANIES HAVE HAD TO WEATHER A LONG PERIOD OF LOW GOLD PRICES AND HAVE BECOME BETTER MANAGED OVER THE YEARS SHE SAYS INVESTORS CAN HAVE MORE CONFIDENCE IN ESTABLISHED COMPANIES BUT NEED TO BE WARY OF THOSE THAT HAVE JUST COME INTO EXISTENCE VAHID FATHI A KEMPER SECURITIES METALS AND MINING ANALYST IN CHICAGO IS WARMING TO SMALLCAP GOLD ISSUES ALBEIT SLOWLY I DON'T WANT TO MOVE INTO SECONDARY GOLDS IN FORCE JUST YET BUT NIBBLING AT THEM MAKES SENSE HE SAYS I LOOK FOR GOLD AT 425 AN OUNCE BEFORE I GO INTO SECONDARIES MORE AGGRESSIVELY THE KEMPER GOLD WATCHER SEES BULLION RISING FROM LOWS OF AROUND 380 AN OUNCE IN THE FIRST QUARTER TO A HIGH IN THE FOURTH QUARTER OF 550 FOR AN AVERAGE 465 FOR THE YEAR OTHERS SEE GOLD AVERAGING IN THE LOW 400S THIS YEAR LAST YEAR GOLD CLOSED 174 HIGHER FOR THE YEAR AND AVERAGED 360 SPOT GOLD CLOSED FRIDAY IN NEW YORK AT 38655 THE ONE SMALLCAP GOLD COMPANY MR FATHI IS WILLING TO RATE AS A STRONG BUY RIGHT NOW IS GLAMIS GOLD BASED IN VANCOUVER BRITISH COLUMBIA THE COMPANY WITH A MARKET CAPITALIZATION OF 180 MILLION SAW ITS SHARE PRICE JUMP 78 LAST YEAR TO 725 ONE OF THE BETTER SMALLCAP PERFORMANCES IT CLOSED FRIDAY AT 750 DOWN 25 CENTS ON THE NEW YORK STOCK EXCHANGE WHEN GOLD REACHES 425 THIS STOCK WILL MOVE SUBSTANTIALLY HIGHER FROM CURRENT LEVELS BECAUSE OF ITS EARNINGS LEVERAGE SAYS MR FATHI HIS OWN ESTIMATE OF THE COMPANY'S BREAKEVEN COST IS 255 AN OUNCE A NUMBER OF SMALLCAP GOLD COMPANIES ARE MOVING INTO SOUTH AMERICA AND OTHER AREAS OVERSEAS TAKING ADVANTAGE OF LOWER REGULATORY BARRIERS ACCOMMODATING LOCAL GOVERNMENTS AND EAGER INVESTORS A LOT OF THE HOT ACTION IS GOING TO COME OUTSIDE OF NORTH AMERICA PREDICTS BRUCE REID WHO TRACKS SMALLCAP GOLD PRODUCERS FOR YORKTON SECURITIES INC IN TORONTO MR REID LIKES AGNICOEAGLE MINES OF TORONTO LOWER PRODUCTION COSTS AND RESULTS FROM LAST YEAR'S DISCOVERY NEAR THE LARONDE MINE IN QUEBEC WILL CONTINUE TO BOOST THE COMPANY'S STOCK HE SAYS THE NEW LARONDE DEPOSIT WILL PROBABLY TURN OUT TO BE TWICE MAYBE THREE TIMES AS BIG AS THE ORIGINAL LARONDE MINE HE SAYS THE YORKTON ANALYST SAYS AGNICOEAGLE'S STOCK WHICH CLOSED FRIDAY AT 1725 CANADIAN DOLLARS US1305 DOWN 75 CENTS ON THE TORONTO STOCK EXCHANGE COULD CLIMB TO C25 OR C30 THIS YEAR THE STOCK ALSO TRADES ON THE NASDAQ STOCK MARKET WHERE IT CLOSED FRIDAY AT 13 DOWN 625 CENTS MR REID ALSO RECOMMENDS BEMA GOLD OF VANCOUVER THE COMPANY HAS A MAJORITY STAKE IN A GOLD PROJECT IN VENEZUELA AND A JOINT VENTURE WITH AMAX GOLD INC FOR A GOLD PROJECT IN CHILE THEY'VE HAD DIFFICULTY GETTING THE FINANCING FOR THE CHILEAN PROJECT BUT ARE NOW IN THE FINAL STAGES HE SAYS THE STOCK IS LIKELY TO JUMP FROM ITS FRIDAY CLOSE OF C315 ON THE TORONTO STOCK EXCHANGE IF THE FINANCING IS COMPLETED MR REID SAYS NORMAND LAMARCHE A FUND MANAGER WITH ALTAMIRA MANAGEMENT LTD IN TORONTO FAVORS A NUMBER OF RISKIER BETS AMONG SMALL EXPLORATION COMPANIES SUCH AS CANARC RESOURCES OF VANCOUVER THAT ARE EXPLORING IN THE KILOMETER 88 REGION OF VENEZUELA WHERE A VERITABLE GOLD RUSH IS UNDER WAY ALTAMIRA IS ALSO BULLISH ON VENEZUELAN GOLDFIELDS OF VANCOUVER THE PREDOMINANT JUNIOR PLAYER AT KILOMETER 88 THE STOCK WHICH TRADES ON THE TORONTO STOCK EXCHANGE CLOSED FRIDAY AT C12125 DOWN 375 CENTS MR LAMARCHE ALSO LIKES TWO COMPANIES THAT OPERATE THE OMAI MINE IN GUYANA SOUTH AMERICA'S LARGEST GOLD MINE GOLDEN STAR RESOURCES BASED IN DENVER OWNS 30 OF THE MINE AND CAMBIOR OF MONTREAL OWNS 65 THE STOCKS CLOSED AT C19375 DOWN 125 CENTS AND AT C21625 DOWN 125 CENTS RESPECTIVELY ON THE TORONTO EXCHANGE THE RUSSELL 2000 INDEX A MEASURE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES FINISHED AT 25918 UP 085 POINT OR 033 THE BAROMETER SPENT THE WEEK MOVING STEADILY TOWARD THE RECORD OF 26017 SET ON NOV 2 TRADERS SAID SMALL ISSUES IN TANDEM WITH THE REST OF THE MARKET WERE AIDED BY A BOND RALLY THE TREASURY'S 30YEAR BOND SHOT UP NEARLY 1 5/8 POINTS DEPRESSING ITS YIELD TO 622 FOLLOWING THE RELEASE OF A STRONG DECEMBER EMPLOYMENT REPORT ON NASDAQ ITS COMPOSITE INDEX GAINED 253 POINTS OR 032 TO END AT 78294 THE MEASUREMENT HAD BEEN ABOUT TWO POINTS OFF THURSDAY'S CLOSE IN EARLY GOING ADVANCING NASDAQ ISSUES WERE AT 1632 COMPARED WITH 1364 DECLINERS NASDAQ NATIONAL MARKET VOLUME WAS 276790800 SHARES DOWN FROM 297389800 THURSDAY AND TOTAL VOLUME SLIPPED TO 330058000 SHARES FROM 349205500 AMONG TECHNOLOGY STOCKS INVESTORS TOOK A SHINE TO DISK DRIVE MAKERS NEW YORK STOCK EXCHANGELISTED WESTERN DIGITAL GAINED 1 5/8 TO 11 5/8 QUANTUM CORP MOVED UP 3/4 TO 16 3/4 AND ZEOS INTERNATIONAL ADDED 5/8 TO 4 ZEOS HAS EXECUTED A NONBINDING LETTER OF INTENT TO ACQUIRE COMPUADD A MAKER AND MARKETER OF PCCOMPATIBLE COMPUTERS IN MERGER NEWS LINCOLN SAVINGS BANK SURGED 12 1/4 TO 53 1/2 FOLLOWING AN ANNOUNCEMENT THAT IT HAS AGREED TO MERGE WITH CITY HOLDING IN A STOCK SWAP VALUED AT ABOUT 68 MILLION CITY HOLDING OF CHARLESTON WVA PLUNGED 7 1/4 TO 27 3/4 OTHER RATESENSITIVE ISSUES TOOK THEIR CUES FROM THE BOND RALLY TO POST GAINS BSB BANCORP GAINED 7/8 TO 23 3/4 PEOPLES BANCORP OF WORCESTER ROSE 1/2 TO 48 3/4 AND MIAMIHEADQUARTERED INTERCONTINENTAL BANK ROSE 3/4 TO 20 CHRONIMED JUMPED 2 1/4 TO 20 THE COMPANY SAID IT HAS SIGNED AN EXCLUSIVE WORLDWIDE LICENSE TO DEVELOP AND MARKET LCYCLOSERINE FOR GAUCHER'S DISEASE CLINICAL TRIALS WILL BE INITIATED BY THE MIDDLE OF THIS YEAR CHRONIMED ADDED CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9401100104 940110 LOW PRICES SEEN MUTING PROFITS FOR OIL FIRMS FOREIGN REFINING AND SALES MAY AID SOME REPORTS FOR THE FOURTH QUARTER BY JILL GOLDSMITH SPECIAL TO THE WALL STREET JOURNAL NEW YORK BIG OIL COMPANIES ARE EXPECTED TO SHOW FOURTHQUARTER RESULTS MUTED BY LOW CRUDE PRICES IN A HANDFUL OF CASES FIRM RETAIL GASOLINE AND NATURAL GAS PRICES HELPED BUTTRESS BALANCE SHEETS AGAINST A SHARP DROP IN CRUDE OIL PRICES BUT OIL COMPANIES WITH LESS EXPOSURE TO RETAILING OR TO INTERNATIONAL MARKETS EMERGED FROM THE QUARTER WITH PROBLEMS IN THEIR UPSTREAM OR EXPLORATION AND DEVELOPMENT OPERATIONS THAT FORCED OPERATING EARNINGS LOWER THE REAL STRENGTH IN THE QUARTER WAS FOREIGN REFINING AND MARKETING SAID MICHAEL YOUNG AN ANALYST AT SMITH BARNEY SHEARSON INC JAMES CLARK AN ANALYST AT CS FIRST BOSTON AGREED THAT FOREIGN OPERATIONS WILL SHOW A MUCH STURDIER PERFORMANCE BOTH IN UPSTREAM AND DOWNSTREAM OR REFINING AND MARKETING OPERATIONS INTERNATIONAL PETROLEUM PRODUCERS WILL BE ENJOYING DECENT PRICES AND HIGHER VOLUMES ESPECIALLY IN THE NORTH SEA HE SAID PAUL TING AN ANALYST AT OPPENHEIMER & CO SAID DEMAND FOR HEATING OIL AND NATURAL GAS IN THE FOURTH QUARTER AND FIRST QUARTER PEAKS MORE SHARPLY IN EUROPE THAN IN THE US AND HE SAID THE FIXEDCOST CONTRACTS MORE COMMONLY FOUND OUTSIDE THE US MAKE FOREIGN OPERATIONS LESS VULNERABLE TO DIPS IN OIL PRICES SO IT ISN'T SURPRISING THAT ROYAL DUTCH/SHELL GROUP WHICH MR YOUNG SAID HAS THE LARGEST NONUS REFINING AND MARKETING ACTIVITIES OF ALL THE MAJOR OIL COMPANIES HAS BEEN CROWNED KING OF THE FOURTH QUARTER AN ANALYSTS' CONSENSUS FROM FIRST CALL A UNIT OF THOMPSON'S FINANCIAL SERVICES SEES OPERATING EARNINGS OF THE NETHERLANDSBASED GROUP RISING TO 164 A SHARE FROM ABOUT 135 A YEAR EARLIER MR YOUNG SAID ROYAL DUTCH/SHELL HAS LOTS OF EXPOSURE TO THE FAR EAST WHERE REFINING AND MARKETING ESPECIALLY MARKETING WAS PARTICULARLY GOOD IN THE FOURTH QUARTER THEN COMES MOBIL CORP WHICH ALSO HAS A SIGNIFICANT PRESENCE IN THE FAR EAST FLANKED BY CHEVRON CORP AND EXXON CORP ANALYSTS SAY THESE THREE ARE ALL STRONG IN INTERNATIONAL PETROLEUM PRODUCTION AND CONTINUE TO REAP THE BENEFITS OF THEIR COSTCUTTING PROGRAMS FIRST CALL'S CONSENSUS SEES MOBIL'S OPERATING NET RISING TO 132 A SHARE FROM 125 IN THE 1992 FOURTH QUARTER ESTIMATES FOR CHEVRON RANGE FROM 145 TO 160 A SHARE COMPARED WITH 153 THE YEAR BEFORE WHILE EXXON'S EARNINGS ARE EXPECTED TO EASE TO 93 CENTS A SHARE FROM 110 BUT SEVERAL ANALYSTS SAID IT'S POSSIBLE THE THREE COMPANIES COULD SHOW SOME SURPRISES ON THE UPSIDE AMONG OTHER INTERNATIONAL COMPANIES THE CONSENSUS VIEW ON BRITISH PETROLEUM CO HAS IT EARNING 81 CENTS A SHARE FROM OPERATIONS COMPARED WITH 74 CENTS IN THE YEARAGO FOURTH QUARTER ALTHOUGH BERNARD PICCHI AN ANALYST AT KIDDER PEABODY & CO WARNS THAT WITH THEIR HIGH LEVERAGE TO OIL PRICES THEY COULD BE HURTING AND HE THINKS MOST OF THE GOOD NEWS FROM BP'S MAMMOTH RESTRUCTURING TO CUT COSTS AND DEBT HAS ALREADY BEEN REFLECTED IN EARNINGS MR PICCHI SEES BP'S OPERATING NET FALLING TO 70 CENTS A SHARE BUT OPPENHEIMER'S MR TING SAID THE COSTCUTTING A REDUCED TAX BURDEN AND INCREASED VOLUME AS NEW PETROLEUM FIELDS COME INTO PRODUCTION WILL ADD UP TO AN ATTRACTIVE FOURTH QUARTER FOR THE BRITISH COMPANY HE SEES BP EARNING 90 CENTS A SHARE FROM OPERATIONS USXMARATHON GROUP LOOKS SET TO SWING OUT OF THE RED WITH FIRST CALL PREDICTING OPERATING EARNINGS OF NINE CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 17 CENTS MR PICCHI ATTRIBUTES THE CHANGE TO IMPROVED OIL PRODUCTION IN THE NORTH SEA AND HE NOTED THAT USXMARATHON'S EXPLORATION EXPENSES ARE DOWN PRACTICALLY TO NOTHING ON A GLOOMIER NOTE TEXACO INC'S EARNINGS ARE SEEN DROPPING TO 89 CENTS A SHARE FROM 111 A SHARE AND AMOCO CORP'S EARNINGS ARE SEEN FALLING TO 80 CENTS FROM 110 ACCORDING TO FIRST CALL ALSO PHILLIPS PETROLEUM CORP IS EXPECTED TO EARN 20 CENTS A SHARE COMPARED WITH 35 CENTS IN THE YEAREARLIER QUARTER AND THE CONSENSUS ON UNOCAL CORP HAS EARNINGS DROPPING TO 22 CENTS A SHARE FROM 39 CENTS THESE COMPANIES COULD YIELD SOME SURPRISES ON THE DOWNSIDE SEVERAL ANALYSTS SAID SMITH BARNEY SHEARSON'S MR YOUNG PREDICTS SOME PROFITTAKING IN DOMESTIC OIL COMPANIES' STOCKS WHEN FOURTHQUARTER RESULTS ARE RELEASED AND INVESTORS REFOCUS THEIR ATTENTION ON WHAT A LOW EARNINGS BASE THESE COMPANIES HAVE OPERATING NET FOR ATLANTIC RICHFIELD CO ONE OF THE COMPANIES MOST EXPOSED TO CRUDE OIL PRICES IS SEEN DROPPING TO 110 A SHARE FROM 183 ANALYSTS NOTED THAT ARCO'S STRONG RETURNS FROM GASOLINE MARKETING PARTICULARLY IN ITS CALIFORNIA STRONGHOLD HELPED COUNTER ITS PINCHED UPSTREAM OPERATIONS BUT THEY SAID ARCO SUFFERED FROM HIGH EXPLORATION COSTS AND FROM TROUBLES IN ALASKA KIDDER PEABODY'S MR PICCHI DESCRIBED OCCIDENTAL PETROLEUM CORP'S FOURTH QUARTER AS NOT A HAPPY STORY A FIRST CALL CONSENSUS HAS OCCIDENTAL LOSING FIVE CENTS A SHARE COMPARED WITH A PROFIT OF FIVE CENTS A YEAR EARLIER BUT MR PICCHI THINKS THE COMPANY COULD LOSE UP TO 15 CENTS A SHARE AS IT IS DRAGGED DOWN BY A LESSTHANLUCRATIVE PETROCHEMICAL UNIT HE AND OTHERS ALSO NOTED THAT OCCIDENTAL HAS NO REAL REFINING OR MARKETING OPERATIONS TO COUNTERBALANCE UPSTREAM LOSSES FROM LOW OIL PRICES AMERADAHESS CORP IS SEEN REPORTING A LOSS OF 60 CENTS A SHARE COMPARED WITH A PROFIT OF 21 CENTS IN THE YEAREARLIER QUARTER AFTER BEING HURT BY CHARGES RELATING TO ITS FIFO ACCOUNTING SYSTEM UNIQUE AMONG MAJOR OIL COMPANIES FIFO OR FIRSTIN FIRSTOUT OBLIGATES AMERADAHESS TO SELL ITS OLDEST INVENTORIED OIL FIRST IT RECORDS CRUDE OIL SALES ON ITS BOOKS AT CURRENT PRICES BUT CALCULATES THE COST OF THE OIL TO ITSELF AT PRICES THAT ARE SEVERAL MONTHS OLD AND IN THIS CASE SIGNIFICANTLY HIGHER ON THE FLIP SIDE ANALYSTS SAID FIFO IS A BOON IF OIL PRICES RISE RAPIDLY AND THAT THE LOSSES COULD BE ERASED BY GAINS LATER IF OIL PRICES RISE BY SEVERAL DOLLARS A BARREL IN THE CURRENT QUARTER AS SOME PREDICT 9401100103 940110 BELL COMPANIES EXPECTED TO POST MODEST GAINS SOFT ECONOMY COMPETITION SLOWED QUARTERLY RISE '94 OUTLOOK IS TOUGH' BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BABY BELL TELEPHONE COMPANIES GRABBED HEADLINES IN 1993 BY STRIKING ALLIANCES WITH THEIR FORMER ARCH ENEMIES IN THE CABLE BUSINESS CAPPED BY BELL ATLANTIC CORP'S PROPOSAL TO BUY CABLE GIANT TELECOMMUNICATIONS INC THE FINANCIAL PERFORMANCE OF THE GROUP BY COMPARISON IS EXPECTED TO BE RELATIVELY UNEXCITING FOR THE FOURTH QUARTER WITH ONLY A FEW OF THE SEVEN BABY BELLS MANAGING TO ACHIEVE DOUBLEDIGIT GROWTH THE CULPRITS ARE A CONSISTENTLY PLODDING US ECONOMY AND INCREASING COMPETITION IN NEARLY EVERY FACET OF THE BELLS' BREADANDBUTTER BUSINESS OF LOCAL SERVICE THE GROUP'S EARNINGS GROWTH THROUGHOUT 1994 MOREOVER WILL REMAIN IN THE 6 TO 7 RANGE PREDICTS ANALYST JACK GRUBMAN OF PAINEWEBBER IT'S GOING TO BE ANOTHER TOUGH YEAR OF EARNINGS PERFORMANCE HE SAID SOME BELLS HOWEVER ARE STANDOUTS AT THE TOP OF MANY ANALYSTS' LISTS IS SAN ANTONIOBASED SOUTHWESTERN BELL CORP MR GRUBMAN EXPECTS THE COMPANY TO POST HIGHER EARNINGS OF 70 CENTS A SHARE FOR THE QUARTER AND ABOUT 250 A SHARE FOR THE YEAR A 13 INCREASE FOR THE YEAR SOUTHWESTERN BELL HAS ANNOUNCED PLANS TO TEAM UP WITH COX ENTERPRISES INC IN A 5 BILLION CABLE DEAL IT CONTINUES TO WIN KUDOS FROM WALL STREET FOR ITS AGGRESSIVE COST CUTTING WINNING MARKETING STRATEGIES AND SAVVY INVESTMENTS AN EARLY ENTRANT INTO THE CELLULAR BUSINESS THE BELL COMPANY CONTINUES TO SIGN UP CUSTOMERS IN RECORD NUMBERS ADDING ABOUT 200000 IN THE FOURTH QUARTER ALONE SAYS STEVEN YANIS A TELECOMMUNICATIONS ANALYST AT KIDDER PEABODY & CO SOUTHWESTERN BELL IS A GOOD EXAMPLE OF WHAT PRUDENT INVESTMENTS BY THE COMPANY EARLY ON CAN DO FOR YOU DOWNSTREAM MR GRUBMAN SAID ANALYSTS ALSO FAVOR U S WEST INC WHICH CONTINUES TO BENEFIT FROM AN IMPROVING ECONOMY IN ITS 14STATE SERVICE TERRITORY THAT STRETCHES ACROSS THE COLORADO ROCKIES ACCESS LINE GROWTH ONE BENCHMARK OF ECONOMIC HEALTH HAS HOVERED IN THE 35 RANGE A RESPECTABLE RATE MR GRUBMAN EXPECTS U S WEST TO POST FOURTHQUARTER EARNINGS OF 69 CENTS A SHARE EXCLUDING COSTS ASSOCIATED WITH DISCONTINUING ITS FINANCIAL SERVICES OPERATIONS LAST YEAR FOR THE YEAR HE EXPECTS EARNINGS OF 280 A SHARE UP 8 AMERITECH CORP CHICAGO AND BELL ATLANTIC PHILADELPHIA ARE ALSO BENEFITING FROM REGIONAL ECONOMIES THAT ARE BEGINNING TO PERK UP MR YANIS EXPECTS AMERITECH TO POST QUARTERLY EARNINGS OF 135 A SHARE UP 77 AND 530 FOR THE YEAR ALSO UP 77 HE FORECASTS THAT BELL ATLANTIC WILL REPORT A QUARTERLY PROFIT OF 80 CENTS A SHARE UP 6 AND EXCLUDING ONETIME CHARGES 345 FOR THE YEAR UP 9 PACIFIC TELESIS GROUP BASED IN SAN FRANCISCO CONTINUES TO FEEL THE EFFECTS OF THE MORIBUND CALIFORNIA ECONOMY ANALYSTS GENERALLY EXPECT PACTEL EARNINGS FOR THE QUARTER AND THE YEAR TO BE FLAT AT AROUND 72 CENTS AND 280 RESPECTIVELY THE BABY BELL IS EXPECTED TO COMPLETE THE SPINOFF OF ITS CELLULAR UNIT THIS YEAR AND MOST ANALYSTS SAY THEY EXPECT THE NEW VENTURE TO BE TREMENDOUSLY SUCCESSFUL ON FRIDAY PACTEL SAID IT PLANS TO CUT 10000 JOBS AND TAKE A 665 MILLION FOURTHQUARTER CHARGE AS IT GIRDS FOR FIERCE COMPETITION IN ITS LOCAL PHONE MARKET LIKEWISE NYNEX CORP BASED IN WHITE PLAINS NY HAS CONTINUED TO FEEL THE HEAT OF INTENSE COMPETITION IN ITS NEW YORK MARKET AND A TOUGH REGULATORY CLIMATE THE COMPANY HAS YET TO DEMONSTRATE IT CAN CONTAIN COSTS THOUGH THE NEW YORK ECONOMY IS SHOWING SOME SIGNS OF RECOVERY MR YANIS EXPECTS NYNEX TO POST PERSHARE EARNINGS OF 77 CENTS FOR THE QUARTER A SLIGHT RISE AND 320 A SHARE FOR THE YEAR ALSO A SLIGHT INCREASE SOME WALL STREET ANALYSTS SAY BELLSOUTH A SLOW COMER IN THE MERGER MANIA SWEEPING THE INDUSTRY IS RIPE TO MAKE A MAJOR ACQUISITION THIS YEAR THE CASHRICH BABY BELL HAS PROPOSED INVESTING 15 BILLION IN QVC NETWORK INC IN HELPING THE LATTER'S EFFORTS TO ACQUIRE PARAMOUNT COMMUNICATIONS INC ALBEIT THE BATTLE IS FAR FROM OVER MR YANIS PREDICTS BELLSOUTH BASED IN ATLANTA WILL REPORT EARNINGS OF AROUND 88 CENTS FOR THE QUARTER UP 75 AND 360 FOR THE YEAR UP ABOUT 73 HE SAID BELLSOUTH HAS THE POTENTIAL TO SURPRISE ON THE UPSIDE BECAUSE OF THE COMPANY'S REDUCED INTEREST EXPENSE AND IMPROVING COST CONTROLS 9401100102 940110 WASHINGTON DC ENDS LAZARD'S ROLE AS ADVISER AMID PROBES TIED TO MERRILL BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE DISTRICT OF COLUMBIA DROPPED LAZARD FRERES & CO AS ITS FINANCIAL ADVISER CITING A CONTINUING CLOUD OVER THE FIRM AMID PROBES INTO LAZARD'S MUNICIPALBONDRELATED DEALINGS WITH MERRILL LYNCH & CO DISTRICT MAYOR SHARON PRATT KELLY ANNOUNCED THE DECISION FRIDAY SAYING SHE TOLD LAZARD IT WOULD BE IN THE BEST INTERESTS OF THE DISTRICT OF COLUMBIA TO SEVER ITS RELATIONSHIP WITH THE FIRM EFFECTIVE IMMEDIATELY MAYOR KELLY SAID A CONTINUING CLOUD OVER THE ACTIONS OF OUR FINANCIAL ADVISER IS AN UNNECESSARY DISTRACTION WASHINGTON IS ONE OF A SUBSTANTIAL NUMBER OF MUNICIPALBOND ISSUING JURISDICTIONS THAT HAVE PROVIDED INFORMATION TO FEDERAL AUTHORITIES LOOKING INTO WHETHER LAZARD FRERES AND MERRILL LYNCH VIOLATED ANY CONFLICTOFINTEREST DISCLOSURE OR OTHER RULES IN THEIR DEALINGS WITH MUNICIPALBOND ISSUERS BOTH FIRMS HAVE DENIED ANY WRONGDOING ELLEN O'CONNOR WASHINGTON'S FINANCE DIRECTOR SAID THE SECURITIES AND EXCHANGE COMMISSION SUBPOENAED THE CITY IN DECEMBER AND THAT THE FEDERAL BUREAU OF INVESTIGATION ACTING ON BEHALF OF THE US ATTORNEY IN BOSTON REQUESTED INFORMATION ON THE CITY'S DEALINGS WITH LAZARD AND MERRILL LYNCH BOTH FIRMS ARE BASED IN NEW YORK LAZARD EARNED A FEE OF 500000 A YEAR FOR PROVIDING FINANCIAL ADVICE TO WASHINGTON A SPOKESWOMAN FOR THE FIRM SAID SHE SAID PUBLICITY SURROUNDING PROBES CENTERING ON THE RELATIONSHIP BETWEEN MARK FERBER THE FORMER HEAD OF LAZARD'S BOSTON OFFICE AND MERRILL LYNCH HAS COST LAZARD OTHER BUSINESS OPPORTUNITIES BUT HAD NO SPECIFICS LAZARD SAID IN A STATEMENT THAT IT HAD PREVIOUSLY OFFERED TO TERMINATE ITS RELATIONSHIP WITH THE DISTRICT AND THAT THE DECISION TO DO SO WAS MUTUALLY AGREED UPON LAZARD SAID DC OFFICIALS WERE CONCERNED ABOUT ALLEGATIONS CONTAINED IN A MASSACHUSETTS INSPECTOR GENERAL'S REPORT OF MISCONDUCT BY THE FORMER LAZARD PARTNER MR FERBER WHO COORDINATED THE FIRM'S RELATIONSHIP WITH THE DISTRICT FROM 1990 THROUGH 1992 THAT REPORT AND RELATED DOCUMENTS ALLEGED THAT MR FERBER TRADED CONFIDENTIAL INFORMATION ABOUT MUNI ISSUERS HE WAS ADVISING TO MERRILL LYNCH TO GAIN BUSINESS FROM MERRILL AND THAT HE HAD AN UNDISCLOSED CONTRACT WITH MERRILL LYNCH TO HELP IT SELL SOCALLED INTERESTRATE SWAPS TO PUBLIC AGENCIES INCLUDING THE DISTRICT THOMAS DWYER MR FERBER'S LAWYER STRONGLY DENIED ANY WRONGDOING BY HIS CLIENT 9401100101 940110 WORLD STOCK MARKETS SOUTHEAST ASIAN STOCK MARKETS TAKE A NOSEDIVE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL DARLINGS TO DOGS IT TOOK ONLY THREE DAYS FOR SOUTHEAST ASIAN STOCK MARKETS TO CHANGE THEIR COMPLEXION COMPLETELY AND AFTER FRIDAY'S HAMMERING MONEY MANAGERS PREDICT EVEN MORE DECLINES HONG KONG COULD FALL ANOTHER 40 AND I DON'T SEE WHY MALAYSIA AND THAILAND COULDN'T FALL AS FAR AS HONG KONG SAYS ANDREW BAKER HEAD OF FAR EAST INVESTMENTS FOR PDFM LTD A UNIT OF THE UNION BANK OF SWITZERLAND IN LONDON VALUATION LEVELS APPEAR TO HAVE DETACHED THEMSELVES FROM WHAT WE REGARD AS THE UNDERLYING FUNDAMENTALS LAST YEAR THOSE STOCKS AVAILABLE TO FOREIGN INVESTORS IN SEVEN KEY ASIAN MARKETS INDONESIA MALAYSIA THE PHILIPPINES SINGAPORE THAILAND HONG KONG AND SOUTH KOREA SOARED AN AGGREGATE 988 IN DOLLARS ACCORDING TO MORGAN STANLEY CAPITAL INTERNATIONAL AND AT THE END OF DECEMBER STOCKS IN THE FIRST FIVE OF THESE MARKETS WERE SELLING AT AN EXTRAORDINARILY HIGH 28 TO 41 TIMES EARNINGS MEANWHILE HONG KONG'S PRICEEARNINGS RATIO STOOD AT 226 ABOUT 50 ABOVE ITS NORM NOTING THE MANY MUTUAL FUNDS SET UP SPECIFICALLY TO INVEST IN EMERGING ASIATHE HUGE INVESTMENT THAT BROKERAGE HOUSES MADE IN PROMOTING THE THEME AND PENSION FUNDS' GROWING APPETITE FOR ASIAN STOCKS MR BAKER SAYS CONDITIONS ARE ABSOLUTELY RIGHT FOR THIS THING TO GET HIDEOUSLY OVERCOOKED WHAT'S MORE HE WARNS UNWARY INVESTORS THAT THERE ARE FEW IF ANY PLACES TO HIDE WHEN THESE MARKETS SELL OFF THEY GO WITH AN ALMIGHTY CRASH SAYS MR BAKER YOU CAN'T BE CLEVER WITH YOUR STOCK SELECTION ANDREW GARTHWAITE A GLOBAL STRATEGIST AT SG WARBURG & CO IN LONDON IS LESS PESSIMISTIC NONETHLESS HE SAYS ASIA'S SMALLER STOCK MARKETS COULD TUMBLE 20 FROM THEIR RECENT PEAKS THAT TRANSLATES ROUGHLY INTO ADDITIONAL 10 DECLINES IN HONG KONG MALAYSIA AND THAILAND 15 FURTHER DOWNTURNS IN THE PHILIPPINES SINGAPORE AND TAIWAN AND EVEN MORE IN INDONESIA THAT KIND OF FALL IN MOST MARKETS WOULD BE CONSIDERED THE START OF A BEAR MARKET SAYS MR GARTHWAITE BUT IN SOUTHEAST ASIA BECAUSE HISTORICAL VOLATILITY IS SO MUCH HIGHER THAT KIND OF A FALL IS MERELY A TRADING SELLOFF ASSOCIATED WITH PROFITTAKING OR TECHNICAL FACTORS HE AND OTHER ANALYSTS REMAIN UPBEAT ON THE LONGTERM PROSPECTS FOR ASIA'S SMALLER STOCK MARKETS MAINLY BECAUSE COUNTRIES IN THE REGION ARE EXPECTED TO GROW MUCH FASTER THAN THE WORLD'S MAJOR INDUSTRIAL POWERS IN ADDITION MR GARTHWAITE ARGUES THAT MARKETS IN SINGAPORE TAIWAN AND KOREA STILL APPEAR TO OFFER GOOD VALUE ON A 12MONTH VIEW WE WOULD STILL HAVE A SMALL OVERWEIGHT POSITION IN THE REGION EXCLUDING HONG KONG HE SAYS BUT ON A THREEMONTH VIEW WE WOULD BE SIGNIFICANTLY MORE CAUTIOUS INDEED ON FRIDAY THE HONG KONG STOCK MARKET FELL 33 BRINGING THE THREEDAY PLUNGE FROM ITS RECORD HIGH LAST TUESDAY TO 98 AT ONE POINT ON FRIDAY THE MARKET WAS OFF 67 BEFORE BARGAINHUNTING INVESTORS STEPPED IN TO GIVE IT A LIFT THE KEY HANG SENG INDEX CLOSED AT 1100148 OFF 37302 POINTS HONG KONG WASN'T ALONE EXCEPT FOR SOUTH KOREA AND INDONESIA ALL OTHER STOCK MARKETS IN THE REGION FELL BETWEEN 09 AND 55 FROM THEIR RECORD HIGHS SET LAST TUESDAY THAILAND IS OFF 102 MALAYSIA 93 THE PHILIPPINES 45 AND SINGAPORE 43 LINKING ALL THESE MARKETS IS THE FLOOD OF MONEY PUMPED INTO THEM BY US JAPANESE AND EUROPEAN INVESTORS SEEKING A PLAY ON THE REGION'S FAST GROWTH AND CHINA'S EMERGENCE AS A POTENTIAL ECONOMIC SUPERPOWER THEY HAVE ALL GONE UP ON THE ASIAN FEELGOOD FACTOR SAYS MR BAKER OF PDFM THESE MARKETS HAVE BEEN BOOMING BECAUSE LOOSE MONEY AROUND THE WORLD HAS BEEN LOOKING FOR A HOME AND IT'S BEEN GOING TO THOSE ECONOMIES SHOWING GROWTH SAYS PETER LYONS GLOBAL STRATEGIST FOR SMITH NEW COURT SECURITIES LTD IN LONDON BUT WHEN THAT TAP IS TURNED OFF IT ISN'T SURPRISING TO SEE ALL THE MARKETS INFLUENCED SIMILARLY SAYS NICHOLAS KNIGHT CHIEF EQUITY STRATEGIST AT NOMURA RESEARCH INSTITUTE IN LONDON MR LYONS SAYS THAT LAST WEEK'S DECLINES REFLECT THE FEAR THAT US INTEREST RATES ARE GOING TO GO UP AND ALTHOUGH HE DOESN'T BELIEVE HIGHER US RATES ARE IMMINENT HE SAYS THE FORTUNES OF THE PACIFIC RIM'S STOCK MARKETS MAY DEPEND ON HOW INDIVIDUAL US INVESTORS WHO THROUGH MUTUAL FUNDS HAVE POURED BILLIONS OF DOLLARS INTO THEM REACT WHEN RATES EVENTUALLY DO RISE HE ISN'T OPTIMISTIC MEANWHILE JAPAN'S STOCK MARKET ONLY DAYS AGO THE REGION'S UGLY DUCKLING IS EMERGING AS ASIA'S BRIGHT SPOT AND AS A BENEFICIARY OF THE CARNAGE ELSEWHERE IN THE REGION ON FRIDAY TOKYO'S NIKKEI 225STOCK INDEX WHICH CLIMBED 9851 POINTS THURSDAY JUMPED 24202 OR 14 TO 1812401 ITS HIGHEST LEVEL SINCE DEC 17 IN TRADING MONDAY IN TOKYO THE NIKKEI INDEX SURGED 32353 POINTS TO CLOSE THE MORNING SESSION AT 1844754 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3622 MILLION SHARES ON THURSDAY GAINERS OUTNUMBERED LOSERS 640381 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 642 POINTS THURSDAY GAINED 1175 TO 148102 IN THE PAST WEEK JAPANESE SHARES HAVE CLIMBED 57 AND NOMURA'S MR KNIGHT PREDICTS THEY COULD CLIMB ANOTHER 5 TO 16 LAST WEEK HE ADVISED CLIENTS TO UNLOAD MALAYSIAN AND PHILIPPINE STOCKS TAKE SOME PROFITS IN HONG KONG AND SIGNIFICANTLY INCREASE THEIR JAPANESE STOCK PORTFOLIOS FOR THE FIRST HALF OF 1993 THE NOBRAINER ASSET ALLOCATION DECISION WAS TO ALLOCATE NEW MONEY TOWARD THE PACIFIC RIM SAYS MR GARTHWAITE OF SG WARBURG BUT NOW YOU ARE IN AN ENVIRONMENT WHERE CONTINENTAL EUROPE LOOKS EXPENSIVE THE MOMENTUM IN THE PACIFIC RIM HAS BROKEN DOWN AND INVESTORS ARE AFRAID OF THE EFFECT OF A RISE IN US RATES THEN BY DEFAULT MORE MONEY WILL BE GOING TO JAPAN MR GARTHWAITE ALSO SAYS THE FALL IN JAPANESE BOND YIELDS TO 3 FROM 6 LAST APRIL MAKES TOKYO STOCKS LOOK MORE ATTRACTIVE CONTENDING THAT THE PREVAILING PESSIMISM OVER JAPAN'S ECONOMIC PLIGHT IS OVERDONE HE ADDS THAT SG WARBURG ANALYSTS FEEL THERE CAN BE A SIGNIFICANT PROFITS RECOVERY IN THE FISCAL YEARS BEGINNING APRIL 1 1994 AND APRIL 1 1995 MOREOVER MR LYONS OF SMITH NEW COURT SAYS ANY RISE IN US INTEREST RATES WOULD BE A NEGATIVE FOR MARKETS IN THE PACIFIC BASIN BECAUSE IT PRODUCES TIGHTER MONEY THERE WHEREAS IT IS POSITIVE FOR JAPAN BECAUSE IT PRODUCES A WEAKER YEN WHICH WOULD BOOST JAPANESE EXPORTS ECONOMIC GROWTH AND CORPORATE PROFITS LONDON STOCKS JUMPED 13 FRIDAY DRIVEN UP BY A RALLY IN THE FUTURES MARKET AND BY FUNDS THAT SOME INVESTORS SWITCHED OUT OF SOUTHEAST ASIAN EQUITIES SHARES SLIPPED FURTHER IN FRANKFURT BUT RALLIED 14 IN PARIS AND MARKED NEW HIGHS IN STOCKHOLM AND BRUSSELS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11249 UP 084 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND A DROP IN ASIAN AND PACIFIC MARKETS EXCLUDING JAPAN FOOTWEAR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8376 UP 290 OR 36 WITH OKAMOTO INDUSTRIES OF JAPAN POSTING A 139 GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 22162 DOWN 636 OR 28 WITH GENTING OF MALAYSIA SLIDING 74 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SOARED 430 POINTS TO 34460 THE FT 30STOCK INDEX CLIMBED 369 POINTS OR 14 TO 26174 VOLUME WAS 105 BILLION SHARES COMPARED WITH 103 BILLION SHARES A DAY EARLIER BOTH BLUE CHIPS AND SMALLER STOCKS WERE FUELED BY STRONG BUYING BY BRITISH AND INTERNATIONAL INVESTORS LOWERTHANEXPECTED EMPLOYMENT FIGURES IN THE US SPURRED HOPES THAT THE FEDERAL RESERVE WON'T RAISE INTEREST RATES DRIVING UP BOND PRICES ON BOTH SIDES OF THE ATLANTIC AND STOCKS IN LONDON THE BOURSE LAST WEEK WAS DRIVEN BY THE FUTURES PIT WHERE THE MARCH STOCK INDEX CONTRACT SURGED AND SET OFF A BUYING SCRAMBLE TO COVER SHORT OR OVERSOLD POSITIONS SENDING PRICES HIGHER BUYING ALSO WAS ATTRIBUTED TO OVERSEAS INVESTORS ESPECIALLY US MUTUAL FUNDS IN COMPUTERGUIDED PROGRAM DEALINGS AND THE MARKET ATTRACTED SOME MONEY PULLED OUT OF SOME OVERHEATING ASIAN BOURSES IN FRANKFURT STOCKS FELL AS SOME CORPORATE PROBLEMS DISTRACTED THE MARKET THE DAX 30STOCK INDEX DECLINED 858 POINTS TO 221164 MAKING LAST WEEK'S TOTAL LOSS 24 EVEN AFTER THE PRESIDENT OF THE GERMAN BUNDESBANK THE CENTRAL BANK SAID INTEREST RATES COULD BE REDUCED IF INFLATION INDICATORS BECAME MORE FAVORABLE IN PARIS PRICES SCORED SUBSTANTIAL GAINS FROM A FRENCH OFFICIAL'S PLANNED TRIP TO SAUDI ARABIA EXPECTED TO RESULT IN LUCRATIVE CONTRACTS FOR FRENCH DEFENSE COMPANIES AN UNEXPECTED RECOVERY BY AUTO STOCKS STRONG WHOLESALE SALES IN THE US IN NOVEMBER AND FAVORABLE FRENCH MONEYSUPPLY DATA THAT SUPPORTED THE OUTLOOK FOR A MONETARY EASING IN STOCKHOLM EQUITIES LOGGED A NEW HIGH FOR THE SECOND CONSECUTIVE SESSION WITH THE MAIN INDEX SURGING 25 THE BROAD RALLY WAS SPARKED BY A FIRMER SWEDISH CURRENCY DECLINING INTEREST RATES AND IMPROVING PROSPECTS FOR SWEDISH COMPANIES AND IN BRUSSELS STOCKS GAINED FOR A FOURTH CONSECUTIVE DAY PARTLY HELPED BY AN INTERESTRATE CUT THURSDAY BY BELGIUM'S CENTRAL BANK IN MILAN STOCKS FELL BECAUSE OF TECHNICAL DEADLINES AN ITALIAN SECRETSERVICE SCANDAL INVOLVING SLUSH FUNDS AND GOVERNMENT OFFICIALS AND A NEGATIVE REACTION TO CORPORATE STOCKRIGHTS ISSUES IN SYDNEY STOCKS FELL FOR THE FIRST TIME IN EIGHT SESSIONS TRADING WAS ACTIVE AND VOLATILE SOFTER GOLD AND METALS PRICES HIT MANY MINING STOCKS AND THE HONG KONG MARKET'S SLUMP ALSO ERODED SOME OF THE CONFIDENCE THAT HAD BOOSTED THE AUSTRALIA MARKET IN RECENT WEEKS BUT IN WELLINGTON SHARES SURGED 12 IN HECTIC LATE TRADING TO END AT A FOURYEAR HIGH LED BY STRONG OVERSEAS BUYING OF FORESTRY AND RESOURCES ISSUES 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 9401100100 940110 FOOD LION SETS STORE CLOSINGS PLANS A CHARGE BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL FOOD LION INC IN A BID TO CURE A LINGERING HEADACHE SAID IT WILL CLOSE 88 STORES THIS YEAR MANY OF THEM IN THE SOUTHWEST AND TAKE A 1705 MILLION PRETAX CHARGE AGAINST 1993 EARNINGS TO COVER THE RESTRUCTURING COSTS THE MOVES FOLLOW A DIFFICULT YEAR FOR THE SALISBURY NC SUPERMARKET CHAIN WHICH SPENT MUCH OF ITS TIME GRAPPLING WITH A TROUBLED EXPANSION INTO THE SOUTHWEST AND FALLOUT FROM A DAMAGING TELEVISION REPORT ALTHOUGH WALL STREET ANALYSTS GENERALLY APPLAUDED FOOD LION'S DECISION SAYING THE COMPANY WAS PUTTING A GOOD CHUNK OF ITS PROBLEMS BEHIND IT INVESTORS REACTED COOLLY IN NASDAQ STOCK MARKET TRADING FRIDAY FOOD LION'S CLASS B OR VOTING SHARES CLOSED AT 7 DOWN 25 CENTS WHILE ITS CLASS A SHARES CLOSED AT 6875 DOWN 25 CENTS THE COMPANY'S PROBLEMS DATE BACK TO NOVEMBER 1992 WHEN AN ABC NEWS SHOW PRIME TIME LIVE ALLEGED THAT FOOD LION REPACKAGED AND SOLD OUTOFDATE MEAT ALTHOUGH THE COMPANY DISPUTED THE STORY SALES SUFFERED THE IMPACT WAS PARTICULARLY NOTICEABLE IN THE SOUTHWEST A NEW MARKET WHERE FOOD LION HAD ALREADY MET STIFF COMPETITION IN RECENT MONTHS SALES AT STORES OPEN AT LEAST A YEAR HAVE STARTED TO INCREASE BUT IN FIGURES RELEASED FRIDAY FOOD LION NOTED THAT SAMESTORE SALES FOR ALL OF 1993 HAD FALLEN 26 ACCORDINGLY THE COMPANY SAID FRIDAY THAT IT WOULD SHUTTER A NUMBER OF UNPROFITABLE STORES OF THE 88 CLOSINGS 47 WILL BE IN THE SOUTHWEST 36 IN TEXAS AND 11 IN OKLAHOMA THE REMAINING 41 STORES ARE IN FLORIDA GEORGIA TENNESSEE KENTUCKY PENNSYLVANIA SOUTH CAROLINA VIRGINIA AND WEST VIRGINIA ROUGHLY 1300 FULLTIME AND 2200 PARTTIME WORKERS WILL BE AFFECTED BY THE CLOSINGS FOOD LION SAID IT WOULD OFFER MOST OF THEM JOBS ELSEWHERE IN THE COMPANY FOOD LION A UNIT OF DELHAIZE LE LION SA OF BELGIUM ADDED THAT IT WOULD OPEN 40 TO 50 NEW STORES IN 1994 AND RENOVATE 60 TO 70 OTHERS THE NUMBER OF OPENINGS HOWEVER IS ROUGHLY HALF THE NUMBER OF PREVIOUS YEARS THE CHARGE WILL TRANSLATE TO 103 MILLION AFTER TAXES FOR 1992 FOOD LION REPORTED EARNINGS OF 178 MILLION OR 37 CENTS A SHARE ON SALES OF 720 BILLION ANALYSTS SAID THE MOVES SHOULD ALLOW THE COMPANY TO FOCUS ON ITS PROFITABLE STORES BUT MANY WERE SURPRISED BY THE SEVERITY OF THE CUTS AS WELL AS THE COMPANY'S DECISION TO SHUT DOWN STORES IN ITS CORE SOUTHEAST MARKET THEY SAW THIS AS A GOOD OPPORTUNITY TO SWEEP THINGS CLEAN AND START OUT THE YEAR FRESH SAID EDWARD COMEAU AN ANALYST WITH LEHMAN BROTHERS BUT I GUESS THEY HAD A WORSE YEAR THAN I THOUGHT FOOD LION STRESSED THAT IT IS STILL COMMITTED TO THE SOUTHWEST MARKET WITH 58 REMAINING STORES THE COMPANY NOTED THAT IT HAS ADDED MORE REGIONAL FOODS TO ITS STORES TO CATER TO LOCAL TASTES AND HAS HIRED A CONSULTANT TO HELP DEVELOP A MARKETING PLAN 9401100099 940110 MARKETING SANDOZ GETS PR WINDFALL FROM TV MOVIE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DIANA ROSS HAS A POWERFUL NEW ADDITION TO HER LEGIONS OF FANS AROUND THE WORLD THE SWISS PHARMACEUTICAL GIANT SANDOZ AG SANDOZ IS BLANKETING THE US WITH POSTERS AND PUBLICITY TOUTING THE MOTOWN SUPERSTAR'S COMING ABC TELEVISION MOVIE OUT OF DARKNESS MS ROSS PLAYS AN ATLANTA MOTHER WHO STRUGGLES WITH SCHIZOPHRENIA FOR 18 YEARS UNTIL A MEDICAL BREAKTHROUGH RELEASES HER FROM THE DEVASTATING MENTAL ILLNESS THE MOVIE IS EXPLICIT ABOUT PRECISELY WHAT BREAKTHROUGH TRANSFORMS MS ROSS'S CHARACTER SANDOZ'S ANTIPSYCHOTIC DRUG CLOZAPINE SEVERAL CHARACTERS REFER TO THE DRUG BY NAME THROUGHOUT THE MOVIE WHOSE WORKING TITLE INSIDE ABC WAS CLOZAPINE PROJECT SANDOZ DIDN'T PAY FOR THE PLUG AND HAD ONLY A NEGLIGIBLE ROLE IN MAKING THE MOVIE BUT NOW THE DRUG COMPANY IS MAKING THE MOST OF ITS SUDDEN PUBLICRELATIONS WINDFALL LAST WEEK IT SENT PRESS RELEASES ABOUT THE MOVIE TO NEWSPAPERS ACROSS THE COUNTRY DESCRIBING IT AS THE STORY OF ONE WOMAN'S HARDWON TRIUMPH OVER THE DISEASE WITH THE HELP OF HER FAMILY A COMPREHENSIVE TREATMENT PROGRAM STAFFED BY DEDICATED PROFESSIONALS AND A BREAKTHROUGH DRUG CALLED CLOZARIL CLOZARIL IS SANDOZ'S BRAND NAME FOR THE DRUG WHICH NO OTHER COMPANY MAKES SANDOZ ALSO SENT SCHIZOPHRENIA PATIENT GROUPS 10000 POSTERS FOR THE MOVIE WHICH AIRS JANUARY 16 AND THIS THURSDAY SANDOZ WILL FLY THE MOVIE'S TECHNICAL ADVISER THE DIRECTOR OF A GEORGIA SCHIZOPHRENIA CLINIC AND THREE OF HER CLOZAPINE PATIENTS TO NEW YORK FOR INTERVIEWS WITH A DOZEN TV STATIONS SANDOZ OFFICIALS ARE PLAYING DOWN THEIR EFFORTS TO PROMOTE THE MOVIE WE CONSIDER THIS STUFF MODEST SAYS SPOKESMAN WILLIAM O'DONNELL I DON'T WANT TO MAKE IT SEEM LIKE WE'RE TRYING TO EXPLOIT THIS HE SAYS THE MOVIE MAKES A STRONG STATEMENT THAT MENTAL HEALTH IS NOT THE PATIENT'S FAULT AND ADDS SANDOZ SUPPORTS GETTING THAT MESSAGE OUT TO PEOPLE THE COMPANY'S PRESS RELEASE CAME FROM SANDOZ'S OUTSIDE PUBLICRELATIONS FIRM ROWLAND CO AND DOESN'T IDENTIFY ITSELF AS A SANDOZ MAILING MR O'DONNELL SAYS ROWLAND PREPARED THE MAILING DURING THE HOLIDAYS AND RAN OUT OF OUR LETTERHEAD SANDOZ OWES ITS GLAMOROUS ENDORSEMENT TO CLOZAPINE'S EXTRAORDINARY PLACE IN THE HISTORY OF MENTAL HEALTH SINCE ITS INTRODUCTION IN 1991 DOCTORS HAVE ACCLAIMED ITS POWERS TO FREE PATIENTS FROM SCHIZOPHRENIA'S PRISON OF PARANOIA AND PSYCHOSIS SANDOZ HAS ALSO DRAWN A FIRESTORM OF CRITICISM FOR CLOZAPINE'S STEEP PRICE CURRENTLY MORE THAN 4000 FOR A TYPICAL YEAR'S DOSE DURING RESEARCH FOR THE ABC MOVIE THE PRODUCERS QUICKLY SAW A STRONG ROLE FOR CLOZAPINE IN THEIR SCRIPT IT'S THE ONLY DRUG THAT HAS THE ABILITY TO BRING A PERSON WITH SCHIZOPHRENIA TO THE POINT OUR CHARACTER REACHES THAT OFFERS THE KIND OF HOPE THAT THIS STORY DEMANDED SAYS EXECUTIVE PRODUCER ANDREW ADELSON MR ADELSON SAYS SANDOZ REVIEWED A COPY OF THE SCRIPT BUT DIDN'T HAVE ANY OTHER PART IN CREATING THE MOVIE BOTH HE AND MR O'DONNELL SAY SANDOZ DIDN'T MAKE ANY COMMENTS THAT SIGNIFICANTLY ALTERED THE SCRIPT ONE SUGGESTION SANDOZ DID MAKE ACCORDING TO MR O'DONNELL HAVE MS ROSS AND HER COSTARS REFER TO THE DRUG BY ITS BRAND NAME CLOZARIL ABC REFUSED CITING ITS POLICY FORBIDDING THE USE OF BRAND NAMES THE MOVIE ALSO SPOTLIGHTS CLOZAPINE'S MOST SERIOUS SHORTCOMING IT REQUIRES A WEEKLY BLOOD TEST TO SPOT A POTENTIALLY FATAL BLOOD CONDITION THAT CROPS UP IN 1 OR 2 OF PATIENTS ON THE DRUG IN THE MOVIE A FRIEND OF DIANA ROSS'S CHARACTER DEVELOPS THE CONDITION AND HAS TO SWITCH TO ANOTHER DRUG IN AN ORIGINAL DRAFT OF THE SCRIPT THE FRIEND GOES ON TO KILL HERSELF BUT MR ADELSON SAYS PATIENT GROUPS WHO REVIEWED THE SCRIPT LOBBIED FOR A REWRITE ARGUING THAT THE MOVIE UNFAIRLY IMPLIED THAT SCHIZOPHRENICS WHO CAN'T TOLERATE CLOZAPINE HAVE NO OTHER CHOICE BUT SUICIDE SANDOZ SAYS IT ISN'T RUNNING CLOZARIL ADS DURING THE MOVIE THOUGH IT ALERTED ITS SALES FORCE ABOUT THE BROADCAST MR O'DONNELL SAYS THE COMPANY IS CONSIDERING PUBLICIZING THE MOVIE TO GOVERNMENT OFFICIALS IN WASHINGTON WHERE THE ENTIRE DRUG INDUSTRY IS UNDER MOUNTING PRESSURE TO CUT PRICES SANDOZ ALSO MADE A GRANT TO THE NATIONAL ALLIANCE FOR THE MENTALLY ILL A PATIENT GROUP TO EXPAND ITS TOLLFREE HOTLINE FOR THREE DAYS AFTER THE MOVIE THE MOVIE ENDS WITH A PUBLICSERVICE ANNOUNCEMENT BY DIANA ROSS THAT MENTIONS THE HOTLINE'S NUMBER 9401100098 940110 TO KEEP UP THAT HOLIDAY STRESS CONSIDER THE MESS ON YOUR DESK BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL JUST WHEN YOU THOUGHT THE HOLIDAYS WERE OVER COMES A DAY DREADED BY THOSE OF US WHO CAN'T EVEN FIND THE CALENDAR TODAY IS NATIONAL CLEAN OFF YOUR DESK DAY IT WAS CREATED IN THE 1950S BY A SLOVENLY JOURNALIST WHO FIGURED STARTING THE YEAR WITH A CLEAN SLATE MIGHT BOOST PRODUCTIVITY AND REDUCE HER ERRORS AS A REMINDER PRIORITY MANAGEMENT SYSTEMS INC A MANAGEMENTTRAINING COMPANY MAILED A 10QUESTION TEST TO CLIENTS FAIL AND YOU'RE A VICTIM OF DESK STRESS AND A DETRIMENT TO YOUR OFFICE IT'S LIKE LOOKING DEATH IN THE FACE TO HAVE A MESSY DESK SWEARS TEE HOUSTONALDRIDGE A PRIORITY VICE PRESIDENT BUT REFORM WON'T HAPPEN IN ONE CLEAN SWEEP SHE SAYS THE MESSY ARE A PROUD LOT DEFENSIVE OF THEIR DISORDER YOU CLEAN THINGS UP AND THEN WHERE ARE YOU DEMANDS LAURA BLANCHARD OF WENDY'S INTERNATIONAL INC LOOK THE BUSIEST PEOPLE I KNOW ARE THE ONES WITH THE STUFF SCATTERED AROUND AMONG THE CLUTTER ON MS BLANCHARD'S DESK ARE FOUR HERSHEY KISSES A CHAPSTICK OLD YOGURT AND USED TISSUES YOU SHOULD SEE MY CAR SHE SAYS MS HOUSTONALDRIDGE SIGHS IT'S PRIORITY'S MISSION TO RESCUE WORKERS FROM THEIR OWN CLUTTER CAN OTHERS FIND ITEMS ON YOUR DESK IF YOU AREN'T THERE ASKS QUESTION NINE ANSWERS LIKE STAY THE HELL AWAY FROM MY DESK ARE INADEQUATE OTHER QUESTIONS CAN BE UNCOMFORTABLY SPECIFIC FOR EXAMPLE ARE THERE MORE THAN 10 ITEMS ON YOUR DESK RIGHT NOW THOSE HALFEMPTY COFFEE CUPS COUNT AND THERE'S NO 7 HAVE YOU BEEN UNABLE TO FIND SOMETHING ON YOUR DESK IN THE PAST WEEK EVERY YES SCORES A POINT RACK UP SEVEN AND IF DESK STRESS' WAS A MEDICAL CASE YOU'D BE IN INTENSIVE CARE TOP EXECUTIVES WORK FROM VERY CLEAN DESKS NOTES MS HOUSTONALDRIDGE ALTHOUGH IT ISN'T CLEAR WHETHER THEY OR THEIR ASSISTANTS DESERVE THE CREDIT FOR THOSE UNABLE TO TACKLE THEIR DISARRAY THERE ARE SAVIORS LIKE BETTY TARR OWNER OF THE SECRETARIETTE ORGANIZATIONAL SERVICE IN BETHEL PARK PA ALL THESE PEOPLE'S WORK JUST SITS GATHERING DUST AND THEN THEY BRING IT TO US MS TARR SAYS ALL THEIR I'M GOING TO DO IT' PILES WE END UP DOING BUT DON'T CHASTISE THE DISORDERDELEGATORS TOO SOON MS HOUSTONALDRIDGE WARNS IT'S LIKE BEING AN ALCOHOLIC AT LEAST THEY ADMITTED THE PROBLEM AND ARE GETTING SOME HELP 9401100097 940110 PREUSSAG INJECTS MONEY INTO UNIT PARIS GERMANY'S PREUSSAG AG SAID IT WOULD INJECT 400 MILLION FRANCS 675 MILLION TO 500 MILLION FRANCS INTO ITS UNPROFITABLE FRENCH UNIT METALEUROP SA THROUGH A LOAN AND BUYING A 49 STAKE IN SOME OF THE UNIT'S GERMAN ACTIVITIES PREUSSAG SAID IT AGREED TO BUY 49 OF THE HIGHPRESSURE FOUNDERIES AND GALVANIZATION ACTIVITIES THAT METALEUROP HAS IN GERMANY AT A PRICE DETERMINED BY AN OUTSIDE AUDITOR THE GERMAN COMPANY ALSO WILL GIVE METALEUROP WHICH IS PUBLICLY TRADED AN INDEFINITE SUBORDINATED LOAN OF AN UNSPECIFIED AMOUNT THE COMPANY SAID IT WOULD PUBLISH DETAILS AFTER ITS BOARD MEETING WEDNESDAY 9401100096 940110 BENEFITS NEW TAX MEANS ALL FREE PARKING WON'T BE FREE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL NOW THE TAX MAN IS GOING AFTER ONE OF THE MOST BELOVED CORPORATE PERKS FREE PARKING SPACES BY AND LARGE THE PLAN WOULDN'T TAX PARKING PLACES VALUED UP TO 155 A MONTH OR 775 A DAY BUT ANY VALUE OVER THAT WOULD BE TAXED AS ORDINARY INCOME AT THAT RATE ANYONE WITH A COMPANY PARKING SPACE IN A BIG CITY IS LIKELY TO GET SOCKED THE RULES WHICH ARE NOW BEING PHASED IN ARE TOUGH WHETHER OR NOT YOU USE THE SPACE YOU PAY THE TAX WORKERS WHO SHARE A SPACE WILL BE TAXED AS IF THEY HAD SPACES ALL TO THEMSELVES MOREOVER CORPORATE PARTNERS SUCH AS MANY LAWYERS CONSULTANTS AND ACCOUNTANTS AS WELL AS INDEPENDENT CONTRACTORS WON'T EVEN BENEFIT FROM THE 155 EXCLUSION THEY MUST PAY TAXES ON THE FIRST DIME OF FREE PARKING BENEFITS THEY GET WORKERS WHO USE CARS FOR BUSINESS PURPOSES WILL CONTINUE TO BE EXEMPT FROM THE TAX WHAT'S NEXT ASKS JOSEPH MULDOON A FINANCIAL INSTITUTION LAWYER IN WASHINGTON WHERE PARKING CAN RUN 10 OR 12 A DAY ARE THEY GOING TO START TAXING OUR DESKS AND CHAIRS THE NEW RULES SPRING FROM A 1992 ENERGY LAW INTENDED TO GET WORKERS OUT OF THEIR AIRPOLLUTING CARS AND ONTO PUBLIC TRANSIT PREVIOUSLY PARKING BENEFITS WEREN'T TAXED BUT IF A COMPANY SUPPLIED EMPLOYEES WITH SAY BUS OR SUBWAY FARES THEY WERE TAXABLE INCOME CONGRESS INTENDED THE LAW TO TIP THE SCALES TOWARD MASS TRANSIT HARRIET MIERS A DALLAS ATTORNEY SAYS THAT IT WOULD TAKE A MIGHTY BIG TAX TO GET TEXAS EXECUTIVES OUT OF THE AIRCONDITIONED CARS THEY DRIVE ACROSS THEIR SPRAWLING CITIES HER DOWNTOWNOFFICE PARKING SPACE HAS BEEN PAID FOR BY HER FIRM FOR SO LONG THAT SHE DOESN'T KNOW WHAT IT'S WORTH PREDICTABLY THE IRS RULES ARE COMPLEX AS SPELLED OUT IN A 13PAGE NOTICE THAT WILL APPEAR IN AN IRS PUBLICATION JAN 18 THE NOTICE IS LIKELY TO SEND LARGE AND SMALL COMPANIES RUSHING TO PUT A VALUE ON THEIR PARKING SPACES THE AMERICAN PAYROLL ASSOCIATION JUST SENT OUT A MEMO TO ITS MEMBERS THIS MONTH WARNING COMPANIES TO GET TO WORK VALUING PARKING BENEFITS SOME COMPANIES MAY EVEN WANT TO REPAINT THEIR PARKINGSPACE LINES FOR EXAMPLE IF A COMPANY PROVIDES PARKING SPACES TO BE USED BY CUSTOMERS AND EMPLOYEES ALIKE THE EMPLOYEES WON'T BE TAXED FOR THEIR FREE PARKING BUT IF EMPLOYEES HAVE BETTER SPACES SET ASIDE THAN CUSTOMERS MAY USE THE COMPANY MUST FIGURE OUT WHAT THE EMPLOYEE SPACES ARE WORTH SO THE EMPLOYEES CAN BE TAXED FOR THAT AMOUNT IT'S VERY INTRICATE AND CONFUSING SAYS MARY HEVENER A FRINGE BENEFITS ATTORNEY IN WASHINGTON IF YOU DON'T HAVE A LOT OF PAYROLL PEOPLE AND HIGHPRICED TAX LAWYERS THIS IS ESPECIALLY DISTRESSING HER FIRM FOR EXAMPLE MCDERMOTT WILL & EMERY USED TO BE A PARTNERSHIP THAT GAVE ITS PARTNERS FREE PARKING THEN STARTING IN 1993 SHE LEARNED THAT THE FREE PARKING WOULD BE TAXED MS HEVENER AS A BENEFITS EXPERT KEPT HER EYE ON IT I WAS HOPING THAT CONGRESS WOULD PASS A TECHNICAL CORRECTION SHE SAYS TO REINSTATE TAXFREE PARKING FOR PARTNERSHIPS IT DIDN'T SO LAST MONTH THE LAW FIRM DECLARED ITSELF A CORPORATION INSTEAD OF A PARTNERSHIP WHICH ENTITLES ITS EMPLOYEES TO THE 155 MONTHLY EXEMPTION ALTHOUGH COMING HEALTH RULES WERE ALSO A FACTOR IT WAS THE PARKING THAT PUSHED THEM INTO INCORPORATION IT WAS THE LAST STRAW SHE SAYS TO MAKE EVERYTHING EVEN MORE COMPLICATED THE LAW TAXES PARKING MASS TRANSIT AND VAN POOLING DIFFERENTLY BENEFITS FOR VAN POOLS AND OTHER MASS TRANSIT ARE TAXABLE AFTER 60 A MONTH IT'S IN THE LAW SO WE HAVE TO DEAL WITH IT SAYS AN IRS SPOKESMAN WE CAN'T JUST LUMP IT ALL TOGETHER MS HEVENER SAYS THAT CORPORATE AMERICA SHOULD BE GRATEFUL THAT THE IRS IS PHASING IN THE RULES AND IS BEING ESPECIALLY FLEXIBLE UNTIL APRIL 1 UNTIL THAT DATE COMPANIES MAY USE ANY REASONABLE METHOD TO DETERMINE IF THEIR PARKING OR OTHER TRANSPORTATION BENEFITS ARE TAXABLE AFTER THAT THEY MUST VALUE THE BENEFITS ACCORDING TO WHAT ANY INDIVIDUAL WOULD PAY IN AN ARM'SLENGTH TRANSACTION THE TAX SAY SOME WILL BECOME JUST ANOTHER REASON TO AVOID DOING BUSINESS IN EXPENSIVE URBAN AREAS THE PROBLEM IS AS YOU NICKELANDDIME PEOPLE WHO WORK IN A DOWNTOWN ENVIRONMENT YOU ARE KILLING THE INNER CITIES SAYS WILLIAM BREWER OF THE LAW FIRM BICKEL & BREWER I'M AS REFORM MINDED AS THE NEXT PERSON HE SAYS BUT THE LEGACY OF THIS TYPE OF LEGISLATION IS ONE DOWNTOWN AREA AFTER ANOTHER GETS SHOT TO HELL 9401100095 940110 QUALITY SEMICONDUCTOR IPO SANTA CLARA CALIF QUALITY SEMICONDUCTOR INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES THE OFFERING IS EXPECTED TO BE PRICED AT 850 TO 950 A SHARE AND WILL BE MANAGED BY ROBERTSON STEPHENS & CO AND NEEDHAM & CO ALL SHARES WILL BE OFFERED BY THE COMPANY WITH PROCEEDS TO BE USED FOR GENERAL CORPORATE PURPOSES THE COMPANY DESIGNS AND SELLS LOGIC AND SPECIALTY MEMORY SEMICONDUCTOR PRODUCTS USED IN NETWORKING PERSONALCOMPUTER WORKSTATION AND TELECOMMUNICATIONS MARKETS 9401100094 940110 ECONOMY EMPLOYMENT PICTURE CONTINUES WEAK FOR CONSTRUCTION AND MANUFACTURING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RISING FACTORY ORDERS AND HOMEBUILDING DON'T SEEM TO BE THE PANACEA FOR EMPLOYMENT IN THE MANUFACTURING AND CONSTRUCTION INDUSTRIES US BUSINESSES CONTINUED TO ADD A MODEST NUMBER OF WORKERS TO THEIR PAYROLLS IN DECEMBER BUT THE MANUFACTURING AND CONSTRUCTION SECTORS WHICH HAD OFFERED ENCOURAGING SIGNS OF EMPLOYMENT GROWTH IN RECENT MONTHS ADDED VIRTUALLY NO NEW WORKERS DOWNSIZING MAY STILL NOT BE COMPLETE AND AT BEST FEW NEW JOBS ARE EXPECTED TO BE ADDED SAID GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS ANALYSTS SAY THE PICKUP IN CONSTRUCTION ACTIVITY MAY NOT YET BE PERVASIVE ENOUGH TO SEE STEADY RISES IN EMPLOYMENT ESPECIALLY IN THE WINTER THE LABOR DEPARTMENT SAID 183000 JOBS WERE CREATED IN THE ECONOMY LAST MONTH DOWN FROM 202000 NEW JOBS IN NOVEMBER THE UNEMPLOYMENT RATE DROPPED SLIGHTLY TO 64 OF THE WORK FORCE IN DECEMBER FROM 65 IN NOVEMBER AND WAS NEARLY A FULL POINT BELOW THE 73 OF DECEMBER 1992 ANALYSTS SAID DECEMBER'S JOB FIGURES HIGHLIGHT HOW FAR THE ECONOMY HAS COME IN TERMS OF JOB GROWTH SINCE 1992 WHEN ONLY ONE MILLION JOBS WERE GENERATED HALF THE PACE OF 1993 BUT THEY NOTE THAT JOB GAINS ARE STILL ONLY MODEST AND AREN'T ENOUGH TO THROW THE ECONOMY INTO A MUCH HIGHER GEAR KATHERINE ABRAHAM COMMISSIONER OF THE DEPARTMENT'S BUREAU OF LABOR STATISTICS SAID THAT ALTHOUGH THE LABOR MARKET HAS IMPROVED OVER THE PAST YEAR THERE ARE STILL SOME BIG PROBLEMS MANY JOBS CREATED LAST YEAR WERE ONLY TEMPORARY POSITIONS SHE TOLD CONGRESS'S JOINT ECONOMIC COMMITTEE ALSO THE NUMBER OF AMERICANS WHO HAVE BECOME DISCOURAGED AND STOPPED LOOKING FOR WORK AND THE NUMBER WHO ARE EMPLOYED PARTTIME BUT WANT A FULLTIME POSITION BARELY CHANGED AT ALL DURING THE YEAR OVERALL HOWEVER THE LABOR MARKET IS CLEARLY STRONGER THAN IT WAS A YEAR AGO MS ABRAHAM SAID MS ABRAHAM ALSO MOVED TO ALLAY FEARS ABOUT THE NEW SURVEY THAT WILL BE USED TO CALCULATE THE UNEMPLOYMENT RATE STARTING WITH THE JANUARY EMPLOYMENT REPORT IT'S EXPECTED TO BOOST THE UNEMPLOYMENT RATE 04 PERCENTAGE POINTS AND ANALYSTS HAVE EXPRESSED CONCERN ABOUT THE LACK OF HISTORICAL COMPARISONS FOR THE NEW FIGURES MS ABRAHAM SAID THAT ALONG WITH OTHER MOVES THE DEPARTMENT THIS SUMMER WILL BEGIN RELEASING A PARALLEL SURVEY BY THE OLD SYSTEM ON THE BASIS OF A THREEMONTH AVERAGE TO PUT THE NUMBERS IN CONTEXT MUCH OF THE INCREASE IN JOBS DURING DECEMBER CAME IN SERVICE INDUSTRIES WHICH ADDED 68000 WORKERS MOSTLY AT TEMPORARYHELP AGENCIES AND RESTAURANTS THERE WERE GAINS IN THE FINANCE INDUSTRY AND IN TRANSPORTATION AS WELL MANUFACTURING AND CONSTRUCTION EMPLOYMENT STAGNATED HOWEVER AFTER TWO STRAIGHT MONTHS OF GROWTH ALTHOUGH FACTORY OVERTIME STAYED AT HISTORICALLY HIGH LEVELS CONSIDERING WHERE WE WERE IN HOURS IT'S DISCONCERTING THAT WE ARE NOT CONVERTING THOSE HOURS INTO MORE PEOPLE SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY THERE WERE A FEW BRIGHT SPOTS IN MANUFACTURING EMPLOYMENT AUTO MAKERS AND ELECTRONICS COMPANIES ADDED WORKERS THERE WERE ALSO GAINS IN THE CONSTRUCTIONRELATED LUMBER AND FURNITURE INDUSTRIES THE REPORT SHOWED THAT WAGE INFLATION REMAINS VERY LOW AVERAGE HOURLY EARNINGS CREPT UP 02 IN DECEMBER AND WERE UP 25 FOR THE YEAR LABOR SECRETARY ROBERT REICH WAS VERY ACCURATE IN HIS FORECAST THURSDAY THAT PAYROLL JOBS ROSE BETWEEN 160000 AND 200000 IN DECEMBER HIS STATEMENT SPOKEN SO CLOSE TO THE RELEASE DATE MADE BOND TRADERS THINK THE SECRETARY WAS GIVING THE MARKETS A HEADSUP BUT THE DEPARTMENT MAINTAINS THAT MR REICH WAS ONLY MAKING AN EDUCATED GUESS AND FOR SECURITY PURPOSES NEVER SEES THE UNEMPLOYMENT NUMBERS UNTIL THE MORNING OF THE RELEASE DATE SEPARATELY THE FEDERAL RESERVE SAID AMERICANS EXPANDED THEIR DEBT LOADS BY 688 BILLION IN NOVEMBER OR AT AN ANNUAL RATE OF 106 IT WAS THE SIXTH INCREASE IN A ROW ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR NOVEMBER IN BILLIONS AND PERCENTAGE CHANGES FROM OCTOBER AT AN ANNUAL RATE HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9401100093 940110 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 13/16 LOW 2 7/8 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 310 30 TO 59 DAYS 312 60 TO 89 DAYS 316 90 TO 119 DAYS 320 120 TO 179 DAYS 330 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 257 TWO MONTHS 264 THREE MONTHS 279 SIX MONTHS 303 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 313 ONE MONTH 323 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 305 60 DAYS 307 90 DAYS 310 120 DAYS 316 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 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 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 7/8 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 3 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 329 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 686 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 684 60 DAYS 694 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9401100092 940110 INTERNATIONAL IRISH UNEMPLOYMENT RATE RISES LONDON IRELAND'S UNEMPLOYMENT RATE ROSE TO A SEASONALLY UNADJUSTED 18 IN DECEMBER FROM 173 IN NOVEMBER THE CENTRAL STATISTICS OFFICE SAID WITH SEASONAL ADJUSTMENT IRELAND'S UNEMPLOYMENT RATE ROSE TO 179 IN DECEMBER FROM 177 IN NOVEMBER THE FIGURES REFLECT THE NAMES OF PEOPLE IN IRELAND'S WORK FORCE APPEARING ON THE LIVE REGISTER A LIST OF THOSE IN RECEIPT OF UNEMPLOYMENT BENEFITS OR UNEMPLOYMENT ASSISTANCE AS WELL AS JOBLESS WORKERS WHO AREN'T CURRENTLY ENTITLED TO BENEFITS THE NUMBER OF PEOPLE CONSIDERED UNEMPLOYED ON THIS BASIS IN THE LATEST MONTH WAS UP 2800 FROM NOVEMBER AND UP 3500 FROM A YEAR EARLIER 9401100091 940110 CORRECTIONS & AMPLIFICATIONS SOFTWARE TOOLWORKS INC HAS CREATED A VIDEOGAME CHARACTER NAMED ALFRED CHICKEN AN ARTICLE WEDNESDAY ABOUT THE ANNUAL CONSUMER ELECTRONICS SHOW MISTAKENLY IDENTIFIED VIACOM NEW MEDIA AS THE CHARACTER'S CREATOR OLYMPIA & YORK DEVELOPMENTS LTD WAS REORGANIZED LAST YEAR UNDER PROTECTION OF A CANADIAN LAW SIMILAR TO CHAPTER 11 OF THE US BANKRUPTCY CODE AN ITEM IN THE FINANCING BUSINESS COLUMN FRIDAY INCORRECTLY DESCRIBED THE COMPANY AS BANKRUPT NATIONAL MEDICAL ENTERPRISES INC HAS RESOLVED ALL MAJOR LITIGATION WITH INSURERS AND WITH MORE THAN HALF OF PSYCHIATRIC PATIENTS IN DISPUTES INVOLVING THE COMPANY'S PSYCHIATRIC HOSPITALS THE COMPANY ALSO HAS ESTABLISHED RESERVES FOR ALL REMAINING CIVIL LITIGATION AN ARTICLE FRIDAY REPORTED INCORRECTLY THAT NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE MUCH OF THE LITIGATION WAS STILL PENDING 9401100090 940110 CANADIAN JOBLESS RATE RISES OTTAWA CANADA'S UNEMPLOYMENT RATE ROSE TO 112 OF THE CIVILIAN LABOR FORCE IN DECEMBER FROM 11 IN NOVEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE INCREASE RESULTED FROM A 03 EXPANSION OF THE LABOR FORCE IN DECEMBER 9401100089 940110 WHO'S NEWS AT SONY DUTIES OF TRISTAR'S MEDAVOY BEING ASSUMED BY COLUMBIA'S CANTON BY LAURA LANDRO AND THOMAS R KING STAFF REPORTERS OF THE WALL STREET JOURNAL IN A MANAGEMENT RESTRUCTURING AT SONY PICTURES ENTERTAINMENT TRISTAR PICTURES CHAIRMAN MIKE MEDAVOY IS LEAVING AND HIS DUTIES WILL BE ASSUMED BY COLUMBIA PICTURES CHAIRMAN MARK CANTON MR CANTON WAS GIVEN THE NEW TITLE OF CHAIRMAN OF THE COLUMBIA TRISTAR MOTION PICTURES COS THOUGH SONY PICTURES SAID THE COLUMBIA AND TRISTAR UNITS WILL CONTINUE TO OPERATE SEPARATELY UNDER ITS MOTION PICTURE GROUP MR CANTON 44 YEARS OLD WILL BE RESPONSIBLE FOR ALL CREATIVE ASPECTS OF BOTH STUDIOS WHILE JONATHAN DOLGEN 47 PRESIDENT OF THE MOTION PICTURE GROUP WILL BE RESPONSIBLE FOR BUSINESS OPERATIONS THE MOVES COME AS TOKYOBASED PARENT SONY CORP IS EXPLORING THE SALE OF AN APPROXIMATELY 25 INTEREST IN ITS MOTION PICTURE AND RECORD OPERATIONS TO A STRATEGIC INVESTOR SUCH AS A COMMUNICATIONS COMPANY ALTHOUGH THERE ARE COSTSAVING INCENTIVES TO MERGING COLUMBIA AND TRISTAR IN ITS PITCH TO PROSPECTIVE INVESTORS SONY'S VALUATION ON THE ASSETS INCLUDES TWO FULLFLEDGED STUDIOS MERGING COLUMBIA AND TRISTAR ALSO WOULD PRESENT ACCOUNTING DIFFICULTIES FOR SONY WHICH ACQUIRED THE OPERATIONS FOR 34 BILLION IN 1989 SONY'S ELEVATION OF MR CANTON GIVES HIM CREATIVE AUTHORITY OVER THE OUTPUT OF AS MANY AS 30 FILMS A YEAR WITH TOP PRODUCTION EXECUTIVES AT SONY AND TRISTAR NOW REPORTING TO HIM MR CANTON WHO WAS A TOP EXECUTIVE AT TIME WARNER INC'S WARNER BROS BEFORE JOINING SONY IS A LONGTIME ASSOCIATE AND FRIEND OF SONY PICTURES CHAIRMAN PETER GUBER THOUGH MR CANTON IS AN ENERGETIC AND FLAMBOYANT EXECUTIVE WITH CLOSE TIES TO HOLLYWOOD HEAVYWEIGHTS SUCH AS ARNOLD SCHWARZENEGGER AND CLINT EASTWOOD HE IS BEING REWARDED WITH THE BIG NEW JOB AFTER A PARTICULARLY INAUSPICIOUS YEAR UNDER MR CANTON COLUMBIA PRODUCED THE DISASTROUS LAST ACTION HERO STARRING MR SCHWARZENEGGER LAST SUMMER AND ITS ONLY CHRISTMAS MOVIE GERONIMO IS A DISAPPOINTMENT ALTHOUGH COLUMBIA'S THE AGE OF INNOCENCE WON CRITICAL RAVES THE EXPENSIVE PICTURE HASN'T MADE A RETURN ON ITS INVESTMENT COLUMBIA'S SHARE OF THE BOX OFFICE LAST YEAR WAS 113 MR CANTON FOR HIS PART SAID HE IS GRATIFIED IN THE FACE OF A LESS THAN GREAT YEAR THAT SONY HAD THE CONFIDENCE IN MY ABILITY TO RUN BOTH COMPANIES SONY PICTURES SAID NO OTHER MANAGEMENT CHANGES AT EITHER STUDIO ARE CONTEMPLATED AT THIS TIME ALTHOUGH THERE IS SPECULATION THAT SIDNEY GANIS AN EXECUTIVE VICE PRESIDENT AT COLUMBIA WILL SOON BE NAMED PRESIDENT OF THAT STUDIO MR CANTON AND MR DOLGEN WILL OPERATE AS A TEAM THE COMPANY SAID BOTH REPORTING TO ALAN LEVINE PRESIDENT AND CHIEF OPERATING OFFICER OF SONY PICTURES ENTERTAINMENT MR DOLGEN WHO HELD TOP POSTS AT NEWS CORP'S FOX INC AND WORKED AT COLUMBIA BEFORE ITS ACQUISITION BY SONY IS REGARDED AS A SHREWD DEALMAKER AND TOUGH NEGOTIATOR MR MEDAVOY'S DEPARTURE MEANWHILE HAD BEEN EXPECTED FOR ALMOST A YEAR THOUGH HIS FIVEYEAR CONTRACT HAS A YEAR REMAINING MR MEDAVOY HAD NEVER BEEN IN MR GUBER'S INNER CIRCLE AND IT HAS BEEN AN OPEN SECRET IN HOLLYWOOD THAT MR MEDAVOY PROBABLY WOULD LEAVE BEFORE HIS CONTRACT EXPIRED INDUSTRY EXECUTIVES SAID MR GUBER FREQUENTLY PREFERRED TO HAVE DIRECT CONVERSATIONS WITH MR MEDAVOY'S LIEUTENANTS OVER SUCH MATTERS SUCH AS FILM PROJECTS AND PRODUCTION BUDGETS SOME COMPANY INSIDERS SAID MR MEDAVOY DIDN'T LEAVE SOONER IN PART BECAUSE THERE HAD BEEN HEAVY MANAGEMENT TURNOVER FOR TWO YEARS UNDER MR GUBER AND SONY WAS CONCERNED ABOUT STABILITY AND RELUCTANT TO LOSE ANOTHER TOP EXECUTIVE JON PETERS WHO WAS MR GUBER'S PARTNER IN FORMING THE NEW MANAGEMENT TEAM AT SONY PICTURES AND FRANK PRICE WHO PRECEDED MR CANTON IN THE COLUMBIA POST WERE BOTH FORCED OUT IN BOTH CASES SONY WAS FORCED TO PAY HEFTY SETTLEMENTS BECAUSE THE EXECUTIVES WERE PART OF A BONUS POOL AND PROFITSHARING ARRANGEMENT SONY PICTURES AND MR MEDAVOY DECLINED TO DISCUSS THE TERMS OF HIS DEPARTURE BUT PEOPLE FAMILIAR WITH THE SITUATION SAID MR MEDAVOY WAS ALSO PART OF THE BONUS ARRANGEMENT AND AS A RESULT WOULD LEAVE THE COMPANY WITH A COMFORTABLE SETTLEMENT ALTHOUGH SOME IN THE INDUSTRY SAID THE SUM WAS LIKELY TO EXCEED 5 MILLION PEOPLE CLOSE TO SONY SAID THAT FIGURE WAS TOO HIGH IN AN INTERVIEW MR MEDAVOY SAID THE DECISION TO LEAVE WAS HIS OWN IT'S TIME TO START ANEW AND I'LL SEE WHERE LIFE TAKES ME HE SAID I HAVE THE LUXURY OF TIME AND I'M GOING TO TAKE IT MR MEDAVOY 52 FORMERLY RAN THE MOVIE OPERATIONS OF ORION PICTURES CORP 9401100088 940110 POLITICS & POLICY CLINTON IS FACING CRITICISM ON BOSNIA AT SUMMIT AS HE NEARS DEAL TO END UKRAINE'S NUCLEAR ROLE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS PRESIDENT CLINTON WILL BE UNDER FIRE AT THE NATO SUMMIT FOR THE ALLIES' FAILURE TO CURB FIGHTING IN BOSNIA EVEN AS HE WAS INCHING CLOSER TO DISARMING UKRAINE'S NUCLEAR ARSENAL WHITE HOUSE COUNSELOR DAVID GERGEN CALLED AIR STRIKES IN BOSNIA A LIVE OPTION IN LARGE PART BECAUSE THE FRENCH ARE PRESSURING FOR MORE ACTION TO END THE CONFLICT BUT A SENIOR ADMINISTRATION OFFICIAL SAID THERE WOULDN'T BE ANY AIR STRIKES DURING THE NEXT COUPLE OF DAYS IN A WAY THE PRESIDENT NOW FACES HIS WORST CASE SCENARIO AT THE SUMMIT JUST AS HE TRIES TO BOOST THE IMAGE OF THE NORTH ATLANTIC TREATY ORGANIZATION A SURGE OF SHELLING IN BOSNIA REMINDS THE WORLD OF THE ALLIANCE'S BIGGEST FAILURE AND IF A PEACE AGREEMENT IS REACHED AMONG THE WARRING PARTIES THE SIDES SEEMED TO DRAW CLOSER YESTERDAY AT TALKS IN GERMANY MR CLINTON WOULD BE PUT ON THE SPOT TO LIVE UP TO HIS COMMITMENT TO USE US FORCES AS PEACEKEEPERS SUCH A MOVE PROBABLY WOULD MEET WITH STRONG OPPOSITION ON CAPITOL HILL WHICH HAS FRESH MEMORIES OF THE MESS IN SOMALIA THE SENIOR ADMINISTRATION OFFICIAL WHO BRIEFED REPORTERS CALLED THE CONFLICT A VERY SERIOUS SITUATION AND ACKNOWLEDGED THAT THE US HAS WARNED THE SERBS FOR THE RENEWED SHELLING HE ALSO SIDESTEPPED QUESTIONS ON WHETHER ALLIES SUCH AS THE FRENCH AND DUTCH HAVE ASKED THE US TO CONDUCT BOMBING RAIDS HE SAID A REQUEST WASN'T MADE IN CONNECTION WITH THE SUMMIT LEAVING OPEN THE POSSIBILITY THAT IT COULD HAVE BEEN MADE INFORMALLY IN RECENT WEEKS IN A SPEECH YESTERDAY ON HIS VISION OF A NEW EUROPE PRESIDENT CLINTON CITED THE MURDEROUS CONFLICT THAT REMINDS EUROPEANS THAT WAR HASN'T ENDED ON THEIR SOIL THE CLASH SAID THE PRESIDENT ALSO REVEALS THE DIFFICULTIES OF APPLYING MILITARY FORCE TO CONFLICTS WITHIN AS WELL AS AMONG STATES AND IT TEACHES US THAT IT IS BEST TO ACT EARLY TO PREVENT CONFLICTS THAT WE MAY LATER NOT BE ABLE TO CONTROL ON A BRIGHTER SIDE ADMINISTRATION OFFICIALS SAID THEY ARE CLOSE TO AN AGREEMENT WITH UKRAINE ON THE DESTRUCTION OF THEIR NUCLEAR WEAPONS A DEAL THAT COULD SEE ABOUT 12 BILLION GOING TO THE UKRAINE THE NUCLEAR MATERIAL SHIPPED TO AMERICA AND THE WEAPONS DESTROYED IN RUSSIA WHILE INSISTING THE DEAL WASN'T COMPLETE THE ADMINISTRATION WAS MAKING PRELIMINARY PLANS FOR THE PRESIDENT TO STOP IN KIEV ON WEDNESDAY TO INITIAL THE ACCORD BEFORE GOING ON TO MOSCOW BUT YESTERDAY'S HOPEFUL SIGNS SEEMED TO BE OVERSHADOWED BY BOSNIA THE ADMINISTRATION ORIGINALLY HAD HOPED TO PLAY DOWN THE ETHNIC STRUGGLE IN THE FORMER YUGOSLAVIA WHILE FOCUSING ON REFORMING NATO AND INITIATING THE PROCESS OF BRINGING THE EASTERN EUROPEAN COUNTRIES UNDER THE ORGANIZATION'S SECURITY UMBRELLA BUT THE SERBS WRECKED THAT APPROACH ON SATURDAY BOMBS KILLED 12 PEOPLE INCLUDING A CHILD AND WOUNDED 36 OTHERS YESTERDAY MORNING A SHELL HIT THE SARAJEVO AIRPORT BRIEFLY CLOSING IT AND MORE EMBARRASSINGLY DELAYING BOSNIAN PRESIDENT ALIJA IZETBEGOVIC'S DEPARTURE FOR PEACE TALKS IN BONN WITH CROATIAN PRESIDENT FRANJO TUDJMAN WHEN THE TALKS BEGAN LATER IN THE DAY THE TWO SIDES FOCUSED ON A PROPOSAL TO GIVE BOSNIA'S MUSLIMS ABOUT ONETHIRD OF THE FORMER YUGOSLAVIA WHITE HOUSE AIDES INSISTED THAT BOSNIA WAS ALWAYS GOING TO BE ON THE SUMMIT AGENDA BUT NOW IT IS IN THE FOREFRONT NOBODY IS TURNING A BLIND A EYE TO BOSNIA SAID MICHAEL MCCURRY THE PRESS SECRETARY FOR SECRETARY OF STATE WARREN CHRISTOPHER MOREOVER MR GERGEN SAID THERE IS A LOT OF PRESSURE FROM THE FRENCH TO DO SOMETHING MORE AND THAT THE ISSUE OF FINDING A BETTER SOLUTION HAS BEEN RAISED TO A PEAK STILL IT WAS CLEARER THAN EVER THAT THE ALLIES AREN'T IN AGREEMENT ON WHAT THE NEXT MOVE SHOULD BE MR GERGEN LISTED AIR STRIKES AS AN OPTION BUT HE ALSO CONCEDED THERE ISN'T YET AN AGREEMENT ON ISSUES SUCH AS WHAT THE TARGETS WOULD BE THE FRENCH WHO HAVE TROOPS ON THE GROUND IN BOSNIA AREN'T BASHFUL ABOUT DECLARING THEY WANT THE US MORE INVOLVED A CHIEF AIDE TO FRENCH PRESIDENT FRANCOIS MITTERRAND SAID OF THE PROSPECTS FOR PEACE EUROPEANS HAVE NOT GOT THE MEANS TO DO IT THEMSELVES WITHOUT THE UNITED STATES THE AIDE ADDED THAT MANY QUESTIONS MUST BE ANSWERED BEFORE ANY AIR RAIDS AND SUGGESTED A MAJOR ONE IS WHETHER THE ALLIES CAN EVEN IMPOSE A SETTLEMENT ON THE WARRING PARTIES THE AIDE PORTRAYED THE HELPLESSNESS THAT THE EUROPEANS FEEL TOWARD THE BLOODY CONFLICT TODAY HE SAID THERE IS AN INCAPACITY OF THE INTERNATIONAL COMMUNITY TO IMPOSE AN ORDER THAT IS JUST AS OF LAST NIGHT IT WAS UNCLEAR WHAT DIRECTION THE NATO TALKS WOULD EVEN GO THE ORIGINAL PLAN WAS FOR THE ALLIES TO ISSUE A COMMUNIQUE REITERATING THEY WOULD USE AIR STRIKES TO PROTECT THE PEACEKEEPING FORCES ON THE GROUND OR IF SARAJEVO WAS STRANGLED THE SAME THREATS MADE PREVIOUSLY IN RESPONSE TO SERB AGGRESSION THE SENIOR ADMINISTRATION OFFICIAL SAID THE COMMUNIQUE WILL INCLUDE A STRONG SERIOUS STATEMENT ABOUT BOSNIA AND MR GERGEN IN AN INTERVIEW YESTERDAY SAID THAT IT IS POSSIBLE THAT THE COMMUNIQUE COULD CHANGE FROM THE ORIGINAL PLAN HE CITED THE PRESSURE FROM THE FRENCH WHICH IN HIS VIEW MAKES THE AIRSTRIKE OPTION MORE LIKELY THE CLINTON ADMINISTRATION HE SAID HAS DISCUSSED THE ISSUE INTERNALLY AND WE ARE PREPARED TO TALK ABOUT IT WITH THE ALLIES THE PRESIDENT'S SPEECH TOOK A GIANT STEP TOWARD REASSURING THE EUROPEANS THAT AMERICA ISN'T ABOUT TO ABANDON THEM CLINTON AIDES ACKNOWLEDGED FOR THE FIRST TIME THAT THIS FAULTY IMPRESSION HAD BEEN LEFT ON PURPOSE TO ENSURE THAT THE EUROPEANS RECOGNIZED THE IMPORTANCE OF COMPLETING THE RECENT WORLD TRADE AGREEMENT WE WANTED TO PUT SOME PRESSURE ON THE EUROPEANS SAID MR GERGEN WHO QUICKLY ADDED THAT THE PRESIDENT'S COMMITMENT TO KEEP ABOUT 100000 TROOPS IN EUROPE SHOULD CONVINCE THEM THE US ISN'T BACKING OFF THEY SHOULD FEEL AT THE END OF THE DAY HE SAID THAT WE ARE HERE FOR THE LONG HAUL THE ONLY DOWNSIDE TO THE SPEECH WAS THAT SECRETARY CHRISTOPHER WAS CAPTURED DOZING OFF BY TELEVISION CAMERAS IN HIS ADDRESS TO THE YOUNG LEADERS OF EUROPE THE PRESIDENT DECLARED I BELIEVE THAT IT IS TIME FOR US TOGETHER TO REVITALIZE OUR PARTNERSHIP AND TO DEFINE A NEW SECURITY AT A TIME OF HISTORIC CHANGE FURTHER MR CLINTON CHEERED ON THE COUNTRIES OF THE FORMER SOVIET BLOC IN THEIR EFFORTS TO CONVERT TO DEMOCRACY ISSUING A VEILED WARNING TO ULTRANATIONALIST RUSSIAN POLITICIAN VLADIMIR ZHIRINOVSKY PITTED AGAINST THEM HE SAYS ARE THE GRIM PRETENDERS TO TYRANNY'S DARK THRONE THE MILITANT NATIONALISTS AND DEMAGOGUES WHO FAN SUSPICIONS THAT ARE ANCIENT AND PARADE THE PAIN OF RENEWAL IN ORDER TO OBSCURE THE PROMISE OF REFORM 9401100087 940110 BLOCKBUSTER DEAL IS A SMART MOVE FOR ITS CHIEF BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT CORP'S AGREEMENT TO MERGE WITH VIACOM INC IS A CLEVER EXIT STRATEGY FOR ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA FROM WHAT MAY BE A DYING BUSINESS MANY ENTERTAINMENT EXECUTIVES SAY IT IS A BEAUTIFUL BAILOUT SAID ONE EXECUTIVE WHO KNOWS THE COMPANY AND MR HUIZENGA WELL SAYS ANOTHER PERSON WITH CLOSE TIES TO THE BLOCKBUSTER EXECUTIVE MAYBE HE KNOWS HE'S HIT A PLATEAU BLOCKBUSTER HAS TREMENDOUS MOMENTUM LARGELY THROUGH ITS 3593STORE VIDEO CHAIN IT GENERATES CASH FLOW OF NEARLY 500 MILLION A YEAR ITS BALANCE SHEET IS NEARLY DEBT FREE ITS EARNINGS GROWTH IS STUNNING IT HAS POSTED QUARTERLY INCREASES RANGING FROM 40 TO 64 IN THE LAST TWO YEARS AND ITS MANAGEMENT HAS REMAINED STEADFASTLY UPBEAT ABOUT THE COMPANY'S FUTURE MR HUIZENGA DENIES THAT THE MERGER WITH VIACOM IS RELATED TO CONCERNS ABOUT HOW TO KEEP THE GROWTH GOING DISMISSING THE IDEA WITH AN EXPLETIVE THIS GIVES OUR SHAREHOLDERS A MUCH BETTER STOCK TO HOLD HE SAYS OF THE DEAL WHICH WOULD COMBINE BLOCKBUSTER'S VIDEO AND MUSIC CHAINS AND STAKES IN TWO SMALL MOVIE STUDIOS WITH VIACOM'S MTV VH1 NICKELODEON AND SHOWTIME CABLE NETWORKS BUT A LOT OF COMMUNICATIONS EXPERTS DON'T SEE HOW BLOCKBUSTER CAN PRESERVE ITS EARNINGS RECORD IN THE FACE OF THE IMMINENT THREAT FROM PAYPERVIEW TELEVISION UNTIL RECENTLY MANY MEDIA EXECUTIVES BELIEVED THAT INHOME VIDEO SERVICE WAS AT LEAST A DECADE AWAY WITH TECHNOLOGICAL ADVANCES AND INDUSTRY CONSOLIDATION THE PROSPECT IS A LOT CLOSER TIME WARNER INC IS PLANNING A SPRING ROLLOUT OF A PROTOTYPE CABLE SYSTEM IN ORLANDO FLA THAT WILL FEATURE VIDEO ON DEMAND AND THE PHONE COMPANIES LIKE BELL ATLANTIC CORP ARE RACING TO IMPLEMENT TECHNOLOGY TO DELIVER MOVIES ON DEMAND OVER PHONE LINES DESPITE DIVERSIFICATION ATTEMPTS THE MAJORITY OF BLOCKBUSTER'S REVENUE COMES FROM VIDEO RENTAL MR HUIZENGA INSISTS THAT'S NOTHING TO WORRY ABOUT BLOCKBUSTER'S SHARE OF THE US VIDEO RENTAL MARKET IS ONLY 15 HE SAYS AND WILL BE BOLSTERED BY GOBBLING UP MOMANDPOP OUTLETS EVEN AFTER INTERACTIVE PAYPERVIEW COMES ON LINE WE WILL STILL BE IN A BETTER POSITION IN VIDEO RENTAL REVENUE IN THE YEAR 2000 THAN WE ARE TODAY HE SAYS BUT IT WILL BE A SHRINKING MARKET AS EARLY AS 1996 THE VIDEORENTAL BUSINESS WILL BE ERODING AT A RATE OF ABOUT 10 A YEAR ACCORDING TO ROGER SIBONI MANAGING PARTNER OF KPMG PEAT MARWICK'S COMMUNICATIONS PRACTICE INDEED BLOCKBUSTER HAS BEEN AGGRESSIVELY PURSUING DIVERSIFICATION STRATEGIES FOR THREE YEARS IN LATE 1992 IT BEGAN BUYING MUSIC RETAILERS IT HAS SINCE ACQUIRED SOUND WAREHOUSE MUSIC PLUS TURTLE'S AND RECORD BAR A YEAR AGO BLOCKBUSTER AGREED TO BUY A MINORITY INTEREST IN REPUBLIC PICTURES KNOWN FOR HAVING PRODUCED JOHN WAYNE MOVIES AND OTHER CLASSIC WESTERNS IN MARCH IT BOUGHT A CONTROLLING STAKE IN SPELLING ENTERTAINMENT GROUP INC WHICH PRODUCES THE HIT TV SHOW BEVERLY HILLS 90210 AND OWNS THE RIGHTS TO SUCH SHOWS AS DYNASTY AND THE LOVE BOAT IN THE LAST YEAR MR HUIZENGA HAS TALKED ABOUT BUILDING A VERTICALLY INTEGRATED FAMILYENTERTAINMENT COMPANY WITH THEME PARKS AND MEGASTORES MARKETING CDS VIDEOS AND INTERACTIVE GAMES AND BEGINNING IN APRIL HE HAD SECRETLY BEGUN TALKING TO VIACOM ABOUT JOINT VENTURES AND ABOUT MERGING THE COMPANIES BEGINNING LAST FALL FOR BLOCKBUSTER GOING IT ALONE WOULD BE COSTLY AND TIMECONSUMING EVEN IN THE SHORTERTERM THE NEW RECORD AND MOVIE PRODUCTION BUSINESSES COULDN'T MATCH THE GROSS PROFIT MARGINS OF VIDEO RENTALS WHICH CAN BE AS HIGH AS 70 COMPARED WITH ABOUT 10 FOR RECORD STORES ACCORDING TO ANALYSTS SOME INDUSTRY EXECUTIVES BELIEVED THAT BLOCKBUSTER'S MOVE INTO NONRENTAL AREAS WOULD EVENTUALLY HURT BOTH THE COMPANY'S EARNINGS AND ITS CACHET AS A HIGHGROWTH STOCK WHICH IS WHY SOME BLOCKBUSTER SHAREHOLDERS WHO WERE INITIALLY PUT OFF BY THE VIACOM DEAL APPEARED TO BE WARMING TO IT BY LATE YESTERDAY THIS IS AN INSURANCE POLICY AGAINST BLOCKBUSTER GOING EXTINCT SAYS LARRY HAVERTY A MONEY MANAGER FOR STATE STREET RESEARCH IN BOSTON ONE OF BLOCKBUSTER'S LARGEST SHAREHOLDERS AND BLOCKBUSTER HAS BEEN SUCH A GROWTH STOCK CLEVERLY USING ITS HIGH STOCK PRICE TO FURTHER EXPANSION THROUGH ACQUISITIONS PARTIALLY PAID FOR WITH STOCK THAT ALMOST ANY SLOWDOWN IN ITS MAIN BUSINESS COULD CAUSE BIG PROBLEMS FOR ITS SHARES ITS STOCK PRICE SOARED LAST YEAR FROM ABOUT 18 A SHARE IN JANUARY TO ABOUT 30 BY YEAR'S END AS THE COMPANY REPORTED EARNINGS GAINS OF MORE THAN 50 IN EACH OF THE FIRST THREE QUARTERS EARNINGS MOMENTUM IS HOW THAT COMPANY HAS BEEN SOLD TO THE STREET SAYS PAUL MARSH A SECURITIES ANALYST WITH NATWEST SECURITIES CORP MR HUIZENGA IS A MASTER AT KEEPING HIS STOCK PRICE PROPPED UP SAYS AN ENTERTAINMENT INDUSTRY EXECUTIVE THAT THE STOCK DIDN'T TAKE A LONGTERM HIT ON THE BASIS OF TECHNOLOGICAL OBSOLESENCE IS A WONDER IN ITSELF STILL MANY BLOCKBUSTER SHAREHOLDERS SHARED MR HUIZENGA'S OPTIMISM ABOUT BLOCKBUSTER'S PROSPECTS AS A STANDALONE COMPANY SO MUCH SO THAT INITIALLY MANY WERE ANGRY ABOUT THE MERGER I'M SHOCKED JUST TOTALLY SHOCKED SAID ONE LARGE SHAREHOLDER WHO BELIEVED BLOCKBUSTER'S STOCK WOULD REACH 50 A SHARE ON ITS OWN THE MERGER PROPOSAL VALUES BLOCKBUSTER STOCK AT ABOUT 31 A SHARE A MODEST 10 PREMIUM TO ITS FRIDAY CLOSE OF 28375 SOME SHAREHOLDERS BELIEVED THE DEAL MAY ATTRACT RIVAL BIDDERS FOR BLOCKBUSTER THE PLAN HAS BEEN APPROVED BY BOTH COMPANIES' BOARDS AND IS SUBJECT TO SHAREHOLDER APPROVAL MR HUIZENGA DEFENDS THE MERGER'S TERMS BY ARGUING THAT BLOCKBUSTER'S SHARES HAVE BEEN TRADING NEAR AN ALLTIME HIGH WHILE VIACOM'S STOCK IS DEPRESSED BECAUSE OF ITS BID FOR PARAMOUNT COMMUNICATIONS INC IF VIACOM'S CLASS A AND B SHARES RETURN TO THEIR PREPARAMOUNT LEVELS BLOCKBUSTER'S STOCK VALUE COULD BE MORE THAN 40 MR HUIZENGA SAYS THAT IS A BIG BIG PREMIUM HE ADDS HE SAYS THAT DURING THE LATEST ROUND OF DISCUSSIONS THE TWO COMPANIES EXAMINED 15 TO 20 SCENARIOS INCLUDING MAKING VIACOM A LOAN BUYING STOCK CONVERTIBLES BUYING SELECTED VIACOM ASSETS AND MAKING A JOINT BID FOR PARAMOUNT EVERYTHING LED BACK TO THE STRENGTHS OF THE COMPANIES TOGETHER MR HUIZENGA SAYS EVEN IF IT DOESN'T GET PARAMOUNT MR HUIZENGA SEES VIACOMBLOCKBUSTER ONE DAY PRODUCING FEATURE FILMS THAT WILL BE DISTRIBUTED FIRST THROUGH MOVIE THEATERS OWNED BY VIACOM CHAIRMAN SUMNER REDSTONE THEN THROUGH BLOCKBUSTER'S VIDEO STORES AND THEN ON VIACOM'S SHOWTIME CABLE NETWORK ONE OF BLOCKBUSTER'S BIGGEST ASSETS IS A DATABASE FILLED WITH MORE THAN 30 MILLION CUSTOMER NAMES AND INFORMATION ABOUT THEIR PREFERENCES IN ACTORS DIRECTORS AND MOVIE GENRES THAT WOULD BE HELPFUL IN MARKETING FILMS BLOCKBUSTER ALSO COULD PROMOTE ITS MUSIC CHAIN ON VIACOM'S MTV AND VH1 NETWORKS IN ADDITION MR HUIZENGA SAYS VIACOMBLOCKBUSTER CAN SHED REDUNDANT OPERATIONS AND SAVE ABOUT 200 MILLION A YEAR IN ADDITION TO HIS NEW POSITION AS VICE CHAIRMAN OF VIACOMBLOCKBUSTER MR HUIZENGA SAYS HE WILL REMAIN CEO AT THE BLOCKBUSTER SUBSIDARY HE HAS NO EMPLOYMENT CONTRACT HOWEVER HE SAYS HE EXPECTS TO HAVE A MUCH BIGGER MANAGEMENT ROLE IF THE COMPANY WINS PARAMOUNT 9401100086 940110 COMPUTER FIRMS REAP BENEFITS OF COST CUTTING MOST BIG HARDWARE MAKERS ARE EXPECTED TO REPORT PROFIT FOR LATEST PERIOD BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THE COMPUTER INDUSTRY'S PAINFUL EFFORTS TO CUT COSTS AND LIVE WITH TIGHTER PROFIT MARGINS ARE STARTING TO BEAR FRUIT WITH MOST BIG HARDWARE MAKERS EXPECTED TO REPORT PROFITS FOR THE FOURTH QUARTER DEMAND FOR MAINFRAME AND MIDRANGE COMPUTERS REMAINED WEAK PARTICULARLY IN EUROPE BUT PERSONALCOMPUTER SALES SURGED AMID CONTINUED PRICECUTTING AND A GROWING HOME MARKET A NUMBER OF COMPANIES HAVE THEIR COSTS UNDER PRETTY DECENT CONTROL SAID BARRY BOSAK AN ANALYST WITH SMITH BARNEY SHEARSON INC ALL THIS DOWNSIZING FOR BOTH MAINFRAMES AND PC COMPANIES IS TAKING HOLD INDUSTRY ANCHOR INTERNATIONAL BUSINESS MACHINES CORP IS EXPECTED TO REPORT A PROFIT AFTER FOUR QUARTERS OF LOSSES THINGS ARE DEFINITELY IMPROVING THE EXPENSE CUTS ARE NOW GOING TO FALL TO THE BOTTOM LINE SAID STEVEN MILUNOVICH AN ANALYST WITH MORGAN STANLEY & CO HE PREDICTS FOURTHQUARTER NET INCOME OF 73 CENTS A SHARE COMPARED WITH A LOSS OF 546 BILLION AFTER 74 BILLION IN CHARGES IN THE 1992 FOURTH QUARTER IN THAT PERIOD IBM REPORTED ITS FIRST OPERATING LOSS 45 MILLION OR EIGHT CENTS A SHARE MR MILUNOVICH THINKS REVENUE FOR THE QUARTER ROSE 2 TO 20 BILLION FROM 1956 BILLION BECAUSE OF 40 GROWTH IN PERSONAL COMPUTERS WHICH ARE NOW IBM'S BIGGEST BUSINESS AND 25 GROWTH IN THE SERVICE BUSINESS MR BOSAK OF SMITH BARNEY SEES IBM REPORTING A PROFIT OF ABOUT 50 CENTS A SHARE FOR THE QUARTER THE ISSUE WITH IBM IS CAN IT STAY IN THE BLACK MR BOSAK THINKS IBM WILL EARN 225 A SHARE FOR 1994 NEARLY AS MUCH AS IT DID IN 1992 HEWLETTPACKARD CO WHICH APPEARS TO HAVE SURPASSED DIGITAL EQUIPMENT CORP AS THE NO 2 US COMPUTER MAKER CONTINUES TO GROW QUICKLY ANALYSTS SAY HP WHOSE FIRST QUARTER ENDS JAN 31 IS RAPIDLY EXPANDING BOTH ITS LASERPRINTER BUSINESS AND ITS UNIXBASED MIDRANGE COMPUTER BUSINESS THE TRENDS ARE ALL FRIENDLY TO THEM SAYS LAURA CONIGLIARO AN ANALYST WITH PRUDENTIAL WHO PREDICTS NET INCOME WILL RISE TO 121 A SHARE FROM 261 MILLION OR 103 A SHARE SHE SEES REVENUE RISING AT THE SAME RATE TO 55 BILLION FROM 46 BILLION SHAO WANG AN ANALYST WITH SMITH BARNEY THINKS HEWLETT'S GROWTH MAY BE SLOWING DOWN HOWEVER AND SEES NET OF ONLY 110 A SHARE THE COMPANY CAN'T CONTINUE TO GROW 20 A YEAR OFF 20 BILLION ANNUAL SALES WHAT HAPPENS WHEN THAT GROWTH RATE SLOWS HIS IS AT THE LOW END OF WALL STREET ESTIMATES WHICH RANGE AS HIGH AS 140 FOR THE QUARTER DIGITAL WHICH HAS HAD JUST ONE PROFITABLE QUARTER IN THE PAST TWO YEARS MAY BE IN THE BLACK FOR ITS SECOND QUARTER ENDED DEC 31 ANALYSTS SAY ALTHOUGH SOME OF THEM HAVE RECENTLY ADJUSTED ESTIMATES TO PREDICT LOSSES I THINK THEY'LL DO A VERY MODEST LEVEL OF PROFIT BUT IF THEY LOSE A MODEST AMOUNT OF MONEY IT WOULDN'T BE A SURPRISE SAID MR WANG OF SMITH BARNEY HE SEES NET OF 10 CENTS A SHARE COMPARED WITH A LOSS OF 739 MILLION OR 57 CENTS A SHARE A YEAR EARLIER THE YEARONYEAR DECLINE IN REVENUE AT DIGITAL IS EXPECTED TO CONTINUE AS SALES OF PROPRIETARY SYSTEMS REMAIN WEAK ESPECIALLY IN EUROPE WHERE DIGITAL DOES HALF ITS BUSINESS MR WANG LOOKS FOR REVENUE OF 34 BILLION DOWN 8 FROM 369 BILLION A YEAR EARLIER BUT DIGITAL HAS BEEN SLASHING COSTS AND PUSHING ITS SALES FORCE SO MR WANG THINKS IT WILL REMAIN PROFITABLE IN COMING QUARTERS APPLE COMPUTER INC AFTER NARROWLY AVERTING A LOSS IN ITS PREVIOUS QUARTER IS EXPECTED TO BE SOLIDLY PROFITABLE IN ITS FIRST QUARTER ENDED DEC 31 MARY MEEKER AN ANALYST WITH MORGAN STANLEY & CO IS AMONG THE MOST OPTIMISTIC ABOUT APPLE PREDICTING IT WILL REPORT NET INCOME OF 50 CENTS A SHARE DOWN FROM NET OF 133 A SHARE A YEAR EARLIER OTHER PREDICTIONS ARE CLOSER TO 35 CENTS MS MEEKER SAYS APPLE REVENUE ROSE 23 TO ABOUT 246 BILLION FROM 2 BILLION A YEAR EARLIER COMPAQ COMPUTER INC IS EXPECTED TO CONTINUE ITS PATTERN OF STRONG GROWTH IN SALES AND EARNINGS FOR THE FOURTH QUARTER BILL GURLEY AN ANALYST WITH FIRST BOSTON SAYS THEY HAVE A STRONG PRODUCT CYCLE THEY'VE INCREASED ADVERTISING TO A RECORD LEVEL AND THEY'RE IN THE HOME MARKET FOR THE FIRST TIME HE PREDICTS NET INCOME WILL RISE TO 166 A SHARE FROM 90 MILLION OR 110 A SHARE A YEAR EARLIER HE SAYS REVENUE ROSE ABOUT 46 TO 208 BILLION FROM 142 BILLION MS MEEKER OF MORGAN STANLEY IS MORE CONSERVATIVE PREDICTING NET OF 131 MILLION OR 154 A SHARE 9401100085 940110 INTERNATIONAL CHINA TO UNVEIL FIRMS SEEKING LISTINGS ABROAD BY WALL STREET JOURNAL REPORTERS KATHY CHEN IN BEIJING AND JULIA LEUNG IN HONG KONG CHINA IS EXPECTED TO ANNOUNCE SOON A SECOND BATCH OF COMPANIES FOR OVERSEAS LISTINGS INCLUDING A HANDFUL OF LARGE STATERUN COMPANIES SEEKING DIRECT LISTING ON THE NEW YORK STOCK EXCHANGE CHINESE SOURCES AND FOREIGN INVESTMENT BANKERS SAY THE ROUGHLY 20 COMPANIES WHICH ARE AWAITING FINAL APPROVAL FROM THE STATE COUNCIL CONSIST MOSTLY OF LARGE INFRASTRUCTURE COMPANIES SEEKING TO MAKE SIZABLE SHARE PLACEMENTS THEY HAVE EVEN GREATER APPEAL TO FOREIGN INVESTMENT BANKERS THAN THE FIRST NINE COMPANIES THAT WERE CHOSEN FOR LISTINGS IN HONG KONG LAST YEAR THESE COMPANIES ARE MORE ATTRACTIVE AND BIGGER THAN THE FIRST BATCH WE'RE TALKING REAL BIG MONEY SAYS ONE EXECUTIVE AT A WESTERN ACCOUNTING COMPANY IN HONG KONG CHINESE SOURCES SAY A LIST OF 19 OR 20 COMPANIES DRAWN UP BY THE CHINA SECURITIES REGULATORY COMMISSION AND THREE OTHER GOVERNMENT DEPARTMENTS WAS HANDED OVER TO THE STATE COUNCIL LAST MONTH THEY SAY PREMIER LI PENG AND OTHER TOP OFFICIALS ARE EXPECTED TO APPROVE THE LIST VERY SOON MOST LIKELY THIS MONTH ALTHOUGH THE COMPANIES HAVE YET TO BE ANNOUNCED THOSE FAMILIAR WITH THE LIST SAY IT INCLUDES POWER PLANTS AIRLINES TRANSPORT COMPANIES AND AIRCRAFT AND AUTOMOBILE MANUFACTURING PLANTS OTHER ENTERPRISES ON THE LIST ENGAGE IN PHARMACEUTICAL COMPUTER CERAMICS AND ELECTRICAL APPLIANCE PRODUCTION THEY SAY WHILE THE MAJORITY WOULD SEEK LISTINGS IN HONG KONG FOUR OR FIVE ARE EXPECTED TO SEEK LISTINGS IN THE US IN WHAT WOULD BE THE FIRST DIRECT LISTINGS OF CHINESE COMPANIES THERE THE THREE CHINARELATED COMPANIES NOW LISTED ON THE NEW YORK STOCK EXCHANGE ARE EITHER OVERSEASBASED HOLDING COMPANIES OR JOINT VENTURES TWO OTHER CHINESE COMPANIES HAVE ISSUED AMERICAN DEPOSITARY RECEIPTS WHILE TAKING PRIMARY LISTING IN HONG KONG LIU HONGRU CHAIRMAN OF CHINA'S SECURITIES COMMISSION SAID RECENTLY THAT HONG KONG WOULD REMAIN THE MAIN DESTINATION FOR CHINESE COMPANIES SEEKING TO RAISE FUNDS ABROAD INDIVIDUAL ENTERPRISES HOWEVER COULD SEEK PRIMARY LISTINGS IN THE US OR IN EUROPE AS EXPERIMENTS HE SAYS STILL SAYS ONE US INVESTMENT BANKER SUCH EXPERIMENTS WILL HAVE A TREMENDOUS IMPACT FOR CHINA HE ADDS THE SIZE OF THE MARKET IN HONG KONG IS MUCH SMALLER AND LIMITS THE UPSIDE FOR CHINESE COMPANIES THE NEW YORK MARKET WILL GIVE CHINESE COMPANIES THE HIGHEST VALUATIONS AND THE HIGHEST PRICES AMONG THE HANDFUL OF CHINESE COMPANIES EXPECTED TO SEEK LISTINGS IN THE US SHANDONG DEZHOU POWER PLANT COULD BE THE FIRST AN OFFICIAL AT CHINA HUANENG GROUP THE PARENT COMPANY OF SHANDONG DEZHOU AND THE COUNTRY'S LARGEST ENERGY GROUP SAYS SHANDONG DEZHOU IS PLANNING TO RAISE SOME 400 MILLION IN THE US HE SAYS THE STATE COUNCIL HAS APPROVED THE OFFERING WHICH WOULD REPRESENT 30 OF SHANDONG DEZHOU'S TOTAL SHARES THE DEAL WHICH IS BEING LED BY CS FIRST BOSTON IS LIKELY TO GO FORWARD IN THE FIRST HALF OF THE YEAR SHANDONG DEZHOU'S SISTER COMPANY HUANENG INTERNATIONAL POWER DEVELOPMENT CORP IS ALSO EXPECTED TO SEEK A LISTING IN THE US BUT PREPARATIONS STILL HAVE A LONG WAY TO GO OF THE TWO AIRLINES ON THE LIST CHINA SOUTHERN AIRLINE GROUP AND CHINA EASTERN AIR GROUP BOTH ARE EXPECTED TO APPLY TO LIST IN THE US INVESTMENT BANKERS AND PROFESSIONALS SAY A CHINA SOUTHERN OFFICIAL SAYS GOLDMAN SACHS HELPED THE AIRLINE WITH A FEASIBILITY STUDY FOR INTERNATIONAL LISTING LAST YEAR BUT IT PROBABLY WON'T BE READY TO LIST FOR ANOTHER SIX TO NINE MONTHS A POSSIBLE BUT LESS LIKELY CANDIDATE FOR A US LISTING IS WUHAN IRON & STEEL CO ONE OF CHINA'S LARGEST STEELWORKS A COMPANY OFFICIAL CONFIRMS IT HAS GOTTEN THE GOAHEAD FROM BEIJING TO PROCEED WITH A FORMAL APPLICATION TO LIST ABROAD HE SAYS THE COMPANY WHICH PRODUCES SOME FIVE MILLION METRIC TONS OF STEEL EACH YEAR PLANS TO RAISE 300 MILLION TO 400 MILLION A METRIC TON IS 220462 POUNDS INVESTMENT BANKERS HAVE BEEN FLOCKING TO SIGN UP COMPANIES SEEKING LISTINGS NANJING'S PANDA ELECTRONICS GROUP WHICH PRODUCES TELEVISIONS AND SATELLITE DISHES TOLD ONE INVESTMENT BANKER THAT REPRESENTATIVES FROM A DOZEN MERCHANT BANKS HAVE VISITED THE COMPANY SO FAR THE PITCHING WAR HAS BEGUN SAYS A HONG KONGBASED EXECUTIVE OF A US INVESTMENT COMPANY ONE REASON FOR THE HEATED COMPETITION IS THE SUCCESS OF THE FIRST GROUP OF OVERSEAS LISTINGS ALL OF THE SIX COMPANIES LISTED SO FAR AMONG THE NINE HAVE PERFORMED WELL BESIDES THE COMPANIES ALREADY MENTIONED OTHERS BELIEVED TO BE ON THE LIST HANDED TO THE STATE COUNCIL INCLUDE GUANGDONGSHENZHEN RAILWAY LEGEND COMPUTER GROUP CO XIAN AIRCRAFT CO IN SHAANXI PROVINCE CHINA NO 2 AUTOMOBILE WORKS IN HUBEI PROVINCE HUABEI PHARMACEUTICAL CO FOSHAN CERAMIC INDUSTRY & TRADE GROUP CO IN GUANGDONG PROVINCE AND SHANGHAIBASED CHINA SHIPPING LINES 9401100084 940110 TECHNOLOGY PACIFIC TELESIS DRIVEN BY RIVALS PLANS 10000 JOB CUTS AND 665 MILLION CHARGE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC TELESIS GROUP PLANS TO SLASH 10000 JOBS AND TAKE A 665 MILLION FOURTHQUARTER CHARGE AS IT GIRDS FOR FIERCE COMPETITION IN ITS LOCAL PHONE MARKET THE SAN FRANCISCO TELECOMMUNICATIONS COMPANY CONSIDERED BY SOME TO BE LESS NIMBLE THAN MANY OF ITS BABY BELL SIBLINGS SAID THE CUTS IN ITS PACIFIC BELL TELEPHONE UNIT ARE PART OF A LARGER PLAN TO REENGINEER THE UNIT'S OPERATIONS PACIFIC TELESIS RECENTLY UNVEILED AN AMBITIOUS 16 BILLION PLAN TO UPGRADE ITS PHONE NETWORK TO BUILD A HUGE VIDEO SUPERHIGHWAY TO HOMES IN ITS TERRITORY THE CUTS AND REENGINEERING ARE PART OF A PLAN TO REDUCE COSTS AND BE BETTER POSITIONED AS COMPETITION GETS MORE INTENSE AND MORE REAL SAID WILLIAM DOWNING PACIFIC BELL'S CHIEF FINANCIAL OFFICER THE UNIT HAS ALREADY REDUCED ITS WORK FORCE BY 9500 SINCE JANUARY 1990 UNDER ITS LATEST PLAN PACIFIC BELL WILL CUT 3000 POSITIONS IN 1994 AND 7000 MORE BY THE END OF 1997 OR 19 OF ITS STAFF OF ABOUT 52000 IN DECEMBER PACIFIC BELL IMPOSED A SALARY FREEZE ON 13700 MANAGERS PACIFIC BELL'S MOVE MIRRORS THAT OF OTHER BABY BELLS AS THEY STRUGGLE TO BECOME LEANER TO DIVERSIFY INTO WIRELESS CABLE AND ENTERTAINMENT BUSINESSES SOPHISTICATED NETWORKS THAT PACIFIC TELESIS BELL ATLANTIC CORP NYNEX CORP AND OTHERS HAVE BEGUN ARE DRIVEN BY TECHNOLOGY AND NEED LESS LABOR SAID STEVEN YANIS OF KIDDER PEABODY & CO THE LOCAL OFFICE OF THE COMMUNICATIONS WORKERS OF AMERICA THE UNION THAT REPRESENTS ABOUT 40000 PACIFIC BELL EMPLOYEES WASN'T PLEASED WITH THE ANNOUNCEMENT JOB CUTS OF 10000 SEEMS LIKE A LOT GIVEN WHAT THEY'VE ALREADY CUT A SPOKESWOMAN SAID PACIFIC TELESIS SAID IT WILL TAKE A FOURTHQUARTER RESERVE OF 576 MILLION MAINLY TO REFLECT THE JOB CUTS AS WELL AS ADDITIONAL CHARGES OF 89 MILLION THE ADDITIONAL CHARGES INCLUDE 29 MILLION RELATED TO REFUNDS PAID TO PACIFIC BELL CUSTOMERS SOME RESEARCH FOR THE COMPANY'S WIRELESS OPERATIONS WAS PAID FOR OUT OF TELEPHONE REVENUE ALSO INCLUDED IN THE 89 MILLION IS 24 MILLION IN CHARGES RELATED TO THE PENDING SPINOFF OF PACIFIC TELESIS'S CELLULAR AND PAGING OPERATIONS IN ALL THE CHARGES WILL REDUCE FOURTHQUARTER EARNINGS BY 665 MILLION OR 158 A SHARE WHICH WILL RESULT IN A LOSS FOR THE YEAR PACIFIC TELESIS SAID IN THE YEARAGO PERIOD THE COMPANY EARNED 287 MILLION OR 71 CENTS A SHARE ANALYSTS HOWEVER EXPECT THE JOB CUTS TO HELP PACIFIC BELL IN THE LONG RUN KENNETH LEON OF LEHMAN BROTHERS ESTIMATES THAT ALTHOUGH PACIFIC BELL EXPECTS FLAT EARNINGS IN 1994 COMPARED WITH 1993 THE CUTS COULD BOOST ANNUAL PRETAX EARNINGS BY ABOUT 150 MILLION THE COMPANY'S SHARES CLOSED AT 5425 UP 625 CENTS IN BIG BOARD TRADING FRIDAY IN ITS PLAN TO BUILD AN ADVANCED VIDEO SERVICES NETWORK PACIFIC TELESIS FACES A LETHARGIC CALIFORNIA ECONOMY A HARSH REGULATORY CLIMATE AND COMPETITION FROM UPSTART FIBEROPTIC PHONE SERVICE PROVIDERS THE BATTLE FOR CALIFORNIA'S LUCRATIVE TELEPHONE MARKETS IS EXPECTED TO INTENSIFY LATER THIS YEAR WHEN REGULATORS CLEAR THE WAY FOR OUTSIDE COMPETITORS TO VIE FOR THE STATE'S 2 BILLION MARKET IN TOLL CALLS THEY ARE LONGDISTANCE CALLS MADE OUTSIDE THE 12MILE LOCAL CALLING AREA BUT WITHIN THE STATE THE PLAN TO OPEN THE TOLLCALL MARKET TO ABOUT 93 COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP HAS BEEN TEMPORARILY DELAYED BY REGULATORS 9401100083 940110 HEARD ON THE STREET KMART MAY BE FOLLOWING TURNAROUND STRATEGY AT SEARS BUT IT MAY NOT LEAD TO SAME RESULT BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL ATTENTION SHOPPERS COULD IT BE THAT KMART STOCK IS HEADED ALONG THE SAME UPWARD PATH PAVED BY SEARS ROEBUCK LAST YEAR DON'T COUNT ON IT ANALYSTS SAY SURE THE STREET APPLAUDED WHEN SEARS DITCHED ITS UNPROFITABLE CATALOG OPERATION AND SOME FINANCIALSERVICES BUSINESSES TO FOCUS ON TURNING AROUND ITS FALTERING STORES SNAZZIER STORES AND MOREENTICING APPAREL LED TO SUPERIOR SALES AND RECORD QUARTERLY EARNINGS SEARS'S STOCK TRADING IN THE LOW 40S AT THE END OF 1992 CLOSED FRIDAY AT 52 5/8 BUT ALTHOUGH KMART APPEARS TO BE READING THE SAME BOOK THE STREET DOESN'T EXPECT THE SAME RESULTS NOT ONLY IS WALMART STORES NIBBLING AWAY AT KMART'S MARKET SHARE BUT A REINVIGORATED SEARS IS AHEAD OF KMART IN THE TURNAROUND GAME KMART PLANS TO SELL TWO NONCORE BUSINESSES AND LAST WEEK ANNOUNCED PLANS TO SELL 20 TO 30 STAKES IN ITS FOUR REMAINING SPECIALTY OPERATIONS KMART ALSO SAID IT WILL TAKE A 13 BILLION PRETAX CHARGE IN THE CURRENT QUARTER TO ALTER ITS COSTLY FIVEYEAR DISCOUNTSTORE RENOVATION PLAN IT NOW WILL CLOSE 500 MORE STORES THAN PLANNED AND REPLACE THEM WITH BIGGER OUTLETS WALL STREET WAS UNMOVED ON THURSDAY THE DAY AFTER KMART'S ANNOUNCEMENT THE STOCK DROPPED 1 1/2 ON BIG VOLUME TO 19 1/2 EQUAL TO ITS 52WEEK LOW FRIDAY IT ENDED AT 20 KMART'S DEBT IS BEING CONSIDERED FOR POSSIBLE DOWNGRADING BY SEVERAL CREDITRATING AGENCIES INCLUDING STANDARD & POOR'S WHICH RATES THE SENIOR DEBT SINGLEA KMART NEEDS TO IMPROVE ON WELL EVERYTHING SAYS ANALYST JEFFREY EDELMAN OF CJ LAWRENCE PERSHARE EARNINGS HAVE STAGNATED FOR FIVE YEARS AND ARE LIKELY TO SHRIVEL IN THE FISCAL YEAR ENDING THIS MONTH KMART IS LOSING MARKET SHARE TO COMPETITORS PARTICULARLY INDUSTRY LEADER WALMART IN SELLING MINORITY STAKES IN FOUR UNITS BY CREATING FOUR SEPARATE SERIES OF STOCK TIED TO THE EARNINGS OF EACH GROUP KMART STILL WILL CONTROL THOSE BUSINESSES BUT WILL LET THEM TRADE ON THEIR OWN THE UNITS ARE BORDERSWALDEN BOOKSTORE GROUP BUILDERS SQUARE HOMEIMPROVEMENT STORES THE OFFICEMAX OFFICESUPPLY CHAIN AND SPORTS AUTHORITY SPORTINGGOODS STORES ANALYSTS CAN'T FIGURE YET HOW MUCH THE UNITS ARE WORTH SINCE KMART HASN'T PROVIDED MUCH DETAIL THE COMPANY WILL SAY ONLY THAT ITS TOTAL RESULTS FOR THE CURRENT FOURTH QUARTER AND YEAR WILL BE WELL BELOW YEARAGO LEVELS WHEN SHARE EARNINGS WERE 115 FOR THE QUARTER 206 FOR THE YEAR MR EDELMAN ESTIMATES THAT THE NONSPECIALTY KMART DISCOUNT STORES ALONE WILL EARN ABOUT 170 A SHARE IN THE YEAR THROUGH JANUARY 1995 IF SOME INVESTMENT BANKERS' ESTIMATES ARE CORRECT AND THE FOUR SPECIALTY UNITS TOGETHER HAVE A VALUE OF ROUGHLY 3 BILLION THEN KMART'S CORE BUSINESS THE DISCOUNT STORES CURRENTLY ARE VALUED BY THE STOCK MARKET AT ABOUT 1275 A SHARE MR EDELMAN SAYS THAT MEANS THE BUSINESS KMART PLANS TO KEEP SOLELY FOR ITSELF IS TRADING AT A SEEMINGLY CHEAP MULTIPLE OF AROUND 75 TIMES HIS PROFIT ESTIMATE FOR THIS YEAR EVEN WITH ALL THE DISAPPOINTMENTS WE'VE SEEN FROM THIS COMPANY 1275 IS A VERY VERY LOW PERSHARE VALUE SAYS MR EDELMAN FUNDAMENTALLY GLEAMING NEW STORES WON'T GUARANTEE THAT KMART CAN GENERATE PROFITS THAT IT AND OTHERS EXPECT THE BIGGEST STICKING POINT POOR SALES OF APPAREL WHICH CARRIES A HIGH PROFIT MARGIN AND IS KEY TO BOTH EARNINGS GROWTH AND DIFFERENTIATING KMART FROM WALMART KMART'S CLOTHING SALES WERE FLAT DURING THE CRITICAL HOLIDAY SEASON I DON'T THINK THE CONSUMER IS CLEAR ON WHAT KMART IS SAYS RICHARD MERCIER OF MOODY'S INVESTORS SERVICE THEY'RE NOT RESPONDING TO KMART'S APPAREL OFFERINGS WHICH LEADS ONE TO CONCLUDE THEY EITHER DO NOT LIKE WHAT IS THERE OR THEY'RE JUST NOT CONSIDERING IT ONE PROBLEM HAS BEEN MIXED SIGNALS SENT BY KMART COMMERCIALS THOSE BROADCAST EARLY LAST YEAR HAD AN UPSCALE FEEL AND FEATURED ATTRACTIVE PROFESSIONAL WOMEN EXCITED ABOUT BUYING KMART CLOTHES THOSE AIRING NOW APPEAR TO TARGET BARGAINHUNTERS THEY FEATURE CHAIRMAN JOSEPH ANTONINI PROMISING LOW LOW PRICES ANOTHER UNKNOWN LIES IN A NEW CONCEPT KMART IS TRYING SOME OF THE LARGER STORES IT WILL BUILD WILL BE SOCALLED SUPER KMARTS COMBINATION GROCERY AND GENERALMERCHANDISE STORES WHILE KMART SAYS THE 18 STORES BUILT SO FAR ARE PERFORMING BETTER THAN PLANNED ANALYSTS SAY THE STRATEGY REMAINS UNPROVEN YOU CAN HAVE THESE BIG GLAMOROUS STORES SAYS JANIS C RICHARDS OF S&P BUT YOU HAVE TO MAKE SURE THE PRODUCE TURNS AND THE DAIRY PRODUCTS STAY FRESH MANAGEMENT AND EXECUTION IN THE END ARE MORE IMPORTANT THAN NICE HARDWARE SAYS ANALYST MARGO MCGLADE OF PAINEWEBBER 9401100082 940110 INTERNATIONAL PACT WITH ABU DHABI IN BCCI SCANDAL IS TO DELIVER PRIME SUSPECT TO THE US BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN OFFICIALS HAVE REACHED AN AGREEMENT WITH ABU DHABI AUTHORITIES THAT PERMITS THE US ARREST OF A PRIME SUSPECT IN THE BANK OF CREDIT & COMMERCE INTERNATIONAL SCANDAL SWALEH NAQVI A FORMER OFFICIAL OF THE NOWDEFUNCT BCCI WAS INDICTED ON FRAUD CHARGES RELATING TO THE ILLEGAL ACQUISITION OF FIRST AMERICAN BANKSHARES INC IN 1991 THE AGREEMENT CALLS FOR HIM TO BE TURNED OVER TO PROSECUTORS WITHIN 120 DAYS OF LAST SATURDAY THIS IS VERY SIGNIFICANT SAID GERALD STERN WHOM PRESIDENT CLINTON APPOINTED SPECIAL COUNSEL FOR FINANCIAL INSTITUTION FRAUD NOW WE CAN GET HIM HERE TO FACE THESE CHARGES MR NAQVI ALREADY IS UNDER ARREST IN ABU DHABI ON BCCIRELATED CHARGES THE NEGOTIATED DOCUMENT SAYS THE JUSTICE DEPARTMENT THE FEDERAL RESERVE BOARD AND THE DISTRICT ATTORNEY'S OFFICE OF NEW YORK WON'T SEEK OR PURSUE ANY PROSECUTION OF OR INITIATE ANY CIVIL OR ADMINISTRATIVE PROCEEDING AGAINST ANY OF THE ABU DHABI PARTIES TO THE AGREEMENT ARISING FROM THE FACTS AND CIRCUMSTANCES OF THE BCCI AFFAIR UNLESS THIS AGREEMENT IS BREACHED BY THE ABU DHABI PARTIES AS PART OF THE DEAL WORKED OUT LAST WEEK A 15 BILLION LAWSUIT BROUGHT BY THE TRUSTEE FOR FIRST AMERICAN AGAINST SHEIK ZAYED ALNAHYAN WILL BE DROPPED SHEIK ZAYED IS RULER OF ABU DHABI AND HIS GOVERNMENT CONTROLLED A MAJORITY STAKE IN BCCI HOLDINGS LUXEMBOURG SA BCCI'S PARENT COMPANY WASHINGTONBASED FIRST AMERICAN WAS SOLD LAST YEAR TO FIRST UNION CORP OF CHARLOTTE NC MIDDLETON MARTIN A WASHINGTON LAWYER FOR THE ABU DHABI PARTIES ISSUED A STATEMENT SAYING THE AGREEMENT SHOWS MY CLIENTS' CONFIDENCE THAT THE COOPERATION WHICH WILL RESULT WILL ASSIST IN IDENTIFYING AND BRINGING WRONGDOERS TO JUSTICE AND WILL DEMONSTRATE ONCE AND FOR ALL THAT THEY WERE INDEED THE LARGEST VICTIM OF THE FRAUD PERPETRATED BY THE WRONGDOERS ABU DHABI AUTHORITIES HAVE PREVIOUSLY PROMISED TO PROVIDE DOCUMENTS AND ACCESS TO OFFICIALS INVOLVED IN THE BCCI CASE BUT HAVEN'T DELIVERED FORMER MARYLAND SEN CHARLES MATHIAS WHO IS CHAIRMAN OF FIRST AMERICAN SAID HE EXPECTS THE ABU DHABI AUTHORITIES TO ACCEDE TO A POSITIVE WRITTEN SOLEMN CONTRACT TO DELIVER PARTICIPATING IN THE NEGOTIATIONS AT LE RICHEMONDE HOTEL IN GENEVA WAS A NINEMEMBER AMERICAN TEAM LED BY MR STERN AND INCLUDING FIVE JUSTICE DEPARTMENT OFFICIALS TWO FROM THE DISTRICT ATTORNEY'S OFFICE AND TWO FROM THE FED A REPRESENTATIVE OF FIRST AMERICAN AND ITS TRUSTEE ALSO WERE PRESENT ABU DHABI WAS REPRESENTED BY THE CHAIRMAN OF THE DEPARTMENT OF PRIVATE AFFAIRS FOR SHEIK ZAYED AND SIX DIRECTORS OF THE ABU DHABI INVESTMENT AUTHORITY PLUS THEIR COUNSEL THE DEAL ALSO PROVIDES THAT SHEIK ZAYED WILL DROP CLAIMS TO 400 MILLION THAT HIS GOVERNMENT INVESTED IN FIRST AMERICAN AND THE 28 SHARE OF THE COMPANY'S STOCK HE OWNED WITH HIS SON AND THE INVESTMENT AUTHORITY MR NAQVI WAS THE TOP ASSISTANT OF AGA HASAN ABEDI THE BCCI FOUNDER WHOM MR STERN DESCRIBED AS THE NO 1 MAN IN THE INTERNATIONAL BANKING RACKET MR ABEDI WHO IS IN PAKISTAN ALSO WAS INDICTED IN 1991 ALONG WITH GHAITH PHARAON MR PHARAON WHOSE WHEREABOUTS ARE UNKNOWN ALLEGEDLY PARTICIPATED IN THE ILLEGAL ACQUISITION OF NATIONAL BANK OF GEORGIA BY BCCI ACCORDING TO THE INDICTMENT BCCI PLEADED GUILTY IN JANUARY 1992 TO FRAUD CHARGES AND FORFEITED ALL OF ITS AMERICAN ASSETS THE BANK CLOSED IN 1991 AMID CHARGES BY FEDERAL OFFICIALS NEW YORK DISTRICT ATTORNEY ROBERT MORGENTHAU BRITAIN AND OTHER COUNTRIES THAT THE BANK WAS INVOLVED IN CRIMINAL ACTIVITIES THAT INCLUDED ARMS TRAFFICKING THE UNITED STATES FROM THE OUTSET HAS BEEN TRYING TO GET TO THE BOTTOM OF US LAWS VIOLATED BY BCCI MR STERN SAID IN ADDITION TO SECURING MR NAQVI'S ARREST THE AGREEMENT WILL GREATLY HELP US PROSECUTORS BY PROVIDING THEM WITH FULL ACCESS TO ALL BCCI DOCUMENTS THAT WE'VE BEEN TRYING TO OBTAIN FROM THE OUTSET AS WELL MR STERN ADDED ALSO 10 FORMER BCCI EMPLOYEES NOW DETAINED IN ABU DHABI WILL BE INTERVIEWED BY A TEAM OF INVESTIGATORS FROM THE JUSTICE DEPARTMENT THE FED AND THE DISTRICT ATTORNEY'S OFFICE NEXT WEEK OR SHORTLY THEREAFTER MR STERN SAID DEPUTY ATTORNEY GENERAL PHILIP HEYMANN SAID THAT THIS IS A REMARKABLE AGREEMENT IN TERMS OF WHAT WE'VE SUCCEEDED IN GETTING AND THE LEVEL OF COOPERATION AMONG GOVERNMENT AGENCIES THE DOCUMENTS AND MR NAQVI'S POTENTIAL COOPERATION WITH US LAWENFORCEMENT OFFICIALS COULD HAVE IMPLICATIONS FOR CLARK CLIFFORD AND ROBERT ALTMAN WASHINGTON LAW PARTNERS ACCUSED BY NEW YORK AND FEDERAL AUTHORITIES OF AIDING BCCI'S TAKEOVER OF FIRST AMERICAN MR ALTMAN WAS ACQUITTED OF STATE CHARGES LAST AUGUST AND SIMILAR CHARGES AGAINST MR CLIFFORD WHO WAS SECRETARY OF DEFENSE UNDER PRESIDENT JOHNSON WERE DISMISSED BY A NEW YORK JUDGE BECAUSE OF MR CLIFFORD'S AGE HE IS 86 YEARS OLD AND POOR HEALTH THE JUSTICE DEPARTMENT DROPPED ITS CHARGES AGAINST THE TWO TO ALLOW THE STATE'S CASE TO PROCEED FEDERAL OFFICIALS HOWEVER RESERVED THE RIGHT TO REFILE THE CHARGES THE NEW INFORMATION COULD HAVE AN EFFECT ON THAT DECISION 9401100081 940110 BELL ATLANTIC AWARDS CONTRACT TO ORACLE CORP SOFTWARE COMPANY GAINS LINK WITH BIG PLAYER IN MULTIMEDIA MARKET BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ORACLE CORP HAS WON A COVETED CONTRACT TO SUPPLY MULTIMEDIA GEAR AND SOFTWARE TO BELL ATLANTIC CORP GAINING WHAT COULD BE AN IMPORTANT ALLY IN THE PROMISING MARKET FOR NEXTGENERATION COMMUNICATIONS NETWORKS BELL ATLANTIC IS EXPECTED TO ANNOUNCE WEDNESDAY THAT IT HAS PICKED ORACLE'S NEW MULTIMEDIA DATABASE SOFTWARE RUNNING ON UNUSUAL PARALLEL SUPERCOMPUTERS TO DELIVER MOVIES ON DEMAND AND INTERACTIVE SHOPPING SERVICES OVER ITS PHONELINE NETWORK THE BELL ATLANTIC CONTRACT ATTRACTING SUCH BIDDERS AS INTERNATIONAL BUSINESS MACHINES CORP GENERATED ATTENTION BECAUSE OF THE LEAD ROLE THE BABY BELL HAS TAKEN IN PUSHING THE MUCHHYPED INFORMATION HIGHWAY THE REGIONAL PHONE COMPANY IS ACQUIRING TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE COMPANY GIVING IT ACCESS TO 20 MILLION HOMES IT HAS SET THE MOST AGGRESSIVE PLANS SO FAR IN THE MULTIMEDIA RACE AIMING TO PROVIDE SERVICES TO 250000 HOMES THIS YEAR A FURTHER ONE MILLION IN 1995 AND ALMOST NINE MILLION BY THE END OF THE DECADE ORACLE HOPES TO LINK WITH BELL ATLANTIC TO DESIGN MYRIAD SOFTWARE APPLICATIONS SUCH AS INTERACTIVE SHOPPING SERVICES THAT THE TWO FIRMS CAN JOINTLY MARKET TO OTHER TELECOMMUNICATIONS AND CABLE COMPANIES BUT THE SOFTWARE COMPANY IS FAR FROM ASSURED OF GAINING THE EDGE IT SEEKS WITH THE BELL ATLANTIC TIE SEVERAL OTHER BABY BELLS HAVE CHOSEN RIVAL VENDORS FOR INTERACTIVE GEAR SOME ANALYSTS MOREOVER DOWNPLAYED THE SIGNIFICANCE OF THE CONTRACT FOR ORACLE IN THE SHORTTERM WHILE LAWRENCE ELLISON ORACLE FOUNDER AND CHIEF EXECUTIVE OFFICER HAS CHARACTERIZED BELL ATLANTIC'S PLANS AS A MASSIVE ROLLOUT AND HAS COMPARED THE AWARD TO IBM'S DECISION TO ANNOINT MICROSOFT CORP IN PERSONALCOMPUTER OPERATING SYSTEMS OTHERS SUSPECT ORACLE IS OVERSTATING HOW RAPIDLY THE TECHNOLOGY WILL BE DEPLOYED THIS IS JUST A TRIAL CONTENDED WILLIAM BLUESTEIN AN ANALYST AT FORRESTER RESEARCH INC IN CAMBRIDGE MASS STEPHEN MCCLELLAN AN ANALYST AT MERRILL LYNCH THINKS THE MULTIMEDIA BUSINESS WON'T MAKE A MAJOR CONTRIBUTION IN THE NEXT TWO YEARS TO ORACLE'S REVENUE WHICH HE EXPECTS TO GROW 30 TO 2 BILLION FOR THE YEAR ENDING IN MAY BUT ONE KNOWLEDGEABLE EXECUTIVE SAID BELL ATLANTIC'S INITIAL ORDER COULD MEAN 35 MILLION TO 50 MILLION IN REVENUE THIS YEAR AND MR ELLISON SAID IN AN INTERVIEW FRIDAY WITH DOW JONES INVESTOR NETWORK THAT MULTIMEDIA ORDERS COULD PROVIDE HUNDREDS OF MILLIONS OF DOLLARS AND RISE TO 40 OR 50 OF TOTAL REVENUE FIVE YEARS OUT BELL ATLANTIC DECLINED TO COMMENT ON THE PACT AS DID A SPOKESWOMAN AT ORACLE BASED IN REDWOOD CITY CALIF THE CONTRACT MEANTIME COULD POLISH THE IMAGE OF ORACLE AND MR ELLISON WHO HAS A REPUTATION FOR PROMISING MORE THAN HIS COMPANY CAN DELIVER A COLLEGE DROPOUT FROM CHICAGO'S SOUTH SIDE HE IS SUDDENLY BEING REGARDED AS A MULTIMEDIA GURU TOMORROW HE IS A HEADLINER AT A LOS ANGELES CONFERENCE DISCUSSING INFORMATIONHIGHWAY POLICIES ALONG WITH VICE PRESIDENT AL GORE QVC NETWORK INC'S CHAIRMAN BARRY DILLER BELL ATLANTIC'S CHIEF EXECUTIVE RAY SMITH AND JOHN MALONE CHIEF EXECUTIVE OF TCI ORACLE MEANWHILE HAS SCHEDULED A BIG TODO JAN 18 THAT WILL FEATURE AMONG OTHER LUMINARIES MR ELLISON AND FORMER NEWS ANCHORMAN WALTER CRONKITE THE PACT WOULD SEEM TO BE A DEFEAT FOR IBM WHICH HAD BEEN CONTENDING FOR THE MAJOR PART OF THE CONTRACT IBM HOWEVER IS EXPECTED TO LAND BELL ATLANTIC ORDERS FOR TV SETTOP DECODER DEVICES BASED ON A MOTOROLA INC CHIP PEOPLE FAMILIAR WITH THE PROJECT SAID IBM IS WINNING PRAISE FOR ITS BOXES WHICH WILL EVENTUALLY RUN ON THE NEW POWERPC CHIP IT DEVELOPED WITH MOTOROLA AND APPLE COMPUTER INC THE BIG BLUE BOX IS PRICED SURPRISINGLY AGGRESSIVELY AT ABOUT 250 A UNIT IN LARGE VOLUMES THE SETTOP MARKET HAS HUGE POTENTIAL FOR IBM AND OTHERS 98 OF THE NATION'S HOMES HAVE TV SETS SOME 58 MILLION HOMES NOW RENT SETTOP BOXES FOR REGULAR CABLE SERVICE BELL ATLANTIC'S INITIAL ORDER WITH ORACLE COVERS FOUR SYSTEMS THAT CAN EACH DELIVER AS MANY AS 25000 VIDEO STREAMS BASED ON THE PARALLEL COMPUTERS OF NCUBE CORP THE CLOSELY HELD COMPANY IN WHICH ORACLE'S MR ELLISON HOLDS ABOUT A 95 STAKE ONE EXECUTIVE SAID THAT WOULD MEAN THE EQUIPMENT COULD SERVE ONDEMAND VIDEO TO 100000 HOMES IF ALL PLACED ORDERS SIMULTANEOUSLY AN UNLIKELY EVENT OR 200000 HOMES OR MORE IF ORDERS WERE STAGGERED ORACLE ALSO MAY ANNOUNCE OTHER ALLIANCES THIS WEEK AMONG THEM ORACLE HAS BEEN PICKED BY BRITISH TELECOMMUNICATIONS PLC FOR A VIDEOONDEMAND TRIAL IN THE LONDON AREA EXECUTIVES SAID THE SOFTWARE FIRM IS IN TALKS WITH CAPITAL CITIES/ABC INC ABOUT TEAMING UP TO BUILD A VIDEO SERVER THAT WOULD DELIVER TV NEWS STORIES WHICH ORACLE WOULD THEN TRY TO SELL TO OTHER TV NEWS DIVISIONS ORACLE ALSO HAS REACHED A TENTATIVE DEAL WITH THE CAPITOL RECORDS UNIT OF THORN EMI PLC TO DEVELOP ANOTHER SERVER THAT WOULD DELIVER MUSIC ON DEMAND LAURIE HAYS CONTRIBUTED TO THIS ARTICLE 9401100080 940110 LETTERS TO THE EDITOR TO HAVE FREE TRADE WE NEED FAIR TRADE JAMES BOVARD WRITING ON YOUR DEC 9 EDITORIAL PAGE CLINTON'S DUMPING COULD SINK GATT SAYS THAT ELIMINATION OF THE US LAWS AGAINST AN ILLEGAL TRADING PRACTICE KNOWN AS DUMPING IS IN THE BEST LONGTERM INTERESTS OF THE NATION ITS CITIZENS AND THE WORLD THIS IS A FALSE AND DANGEROUS ASSERTION MR BOVARD'S ESSAY PROMPTS A FEW OBVIOUS QUESTIONS QUESTION WHY WOULD A FOREIGN COMPANY CHOOSE TO SELL PRODUCTS IN THE US AT PRICES BELOW ITS COST OF PRODUCTION WHY WOULD IT SELL AT PRICES BELOW THOSE CHARGED IN ITS HOME MARKET ANSWER TO HELP PAY FOR ITS FIXED COSTS AND THUS AVOID SHUTTING DOWN PLANTS AND TERMINATING WORKERS IN ITS OWN COUNTRY IT MATTERS NOT AT ALL TO THEM THAT AMERICAN WORKERS LOSE THEIR JOBS AND BENEFITS QUESTION WHY DON'T US COMPANIES SIMPLY RETALIATE BY SHIPPING MORE PRODUCTS INTO FOREIGN MARKETS INSTEAD OF EXPECTING THE GOVERNMENT TO ENFORCE LONGSTANDING TRADE LAWS ANSWER THE FOREIGN COMPANIES AND THEIR GOVERNMENTS HAVE ERECTED BARRIERS TO PREVENT US COMPANIES FROM SELLING IN THE FOREIGN COMPANIES' HOME MARKETS QUESTION WON'T FOREIGN NATIONS DROP THESE BARRIERS IF THE US ELIMINATES ITS LAWS AGAINST DUMPING ANSWER NO THE PRIMARY OBJECTIVE OF FOREIGN GOVERNMENTS DURING THE GATT NEGOTIATIONS IS TO DISMANTLE US TRADE LAWS NOT TO OPEN THEIR MARKETS MR BOVARD REPEATEDLY ASSERTS THAT THE AMERICAN CONSUMER WILL BENEFIT THROUGH LOWER PRICES FOR FOREIGNMADE GOODS IF THE CLINTON ADMINISTRATION LEGALIZES DUMPING THAT MAY BE THE MOST DANGEROUS MISCONCEPTION OF ALL DUMPING AND OTHER ILLEGAL FOREIGN TRADING PRACTICES HAVE DRIVEN US COMPANIES OUT OF BUSINESS AND FORCED MILLIONS OF WORKERS INTO THE UNEMPLOYMENT LINE OR LOWWAGE JOBS SHOES TEXTILES AUTOS STEEL WATCHES TVS RADIOS AND MUCH OF HOME ELECTRONICS HAVE BEEN SEVERELY SHATTERED BY VIOLATIONS OF US TRADE LAWS FREE TRADE MUST BE FAIR TRADE TRADING PARTNERS MUST TREAT EACH OTHER'S MARKETS WITH RESPECT WHILE COMPETING ON THE BASIS OF VALUE THAT IS QUALITY SERVICE AND EFFICIENCY NOT BY DROPPING THE PRICE UNTIL THE COMPETITOR IS DRIVEN OUT OF BUSINESS 9401100079 940110 OGLETHORPE PLAN TO REFINANCE DEBT IS REJECTED TREASURY DECIDES REQUEST FOR WAIVER OF PENALTIES WOULD COST TAXPAYERS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE TREASURY REJECTED OGLETHORPE POWER CORP'S PROPOSAL TO REFINANCE IN THE BOND MARKET THE 3 BILLION IN DEBT IT HAS OUTSTANDING WITH THE DEPARTMENT'S FEDERAL FINANCING BANK AFTER REVIEWING OGLETHORPE'S PROPOSAL FOR SIX MONTHS TREASURY CONCLUDED THAT THE ELECTRIC COOPERATIVE'S REQUEST FOR A PARTIAL WAIVER OF PREPAYMENT PENALTIES ON WHICH ITS REFUNDING PLAN HINGED WOULD RESULT IN A SUBSTANTIAL COST TO TAXPAYERS APPROXIMATELY 286 MILLION AT A TIME OF SEVERE BUDGETARY CONSTRAINT THE TREASURY WHICH NOTIFIED OGLETHORPE OF ITS DECISION FRIDAY SAID GRANTING THE REQUESTED RELIEF WOULD BENEFIT ONLY ONE GROUP TO THE DETRIMENT OF ALL TAXPAYERS AND WOULD SET AN EXPENSIVE PRECEDENT SEVERAL OTHER ELECTRIC COOPERATIVES AND INVESTMENT BANKERS HAVE BEEN FOLLOWING THE OGLETHORPE MATTER IN HOPES OF GETTING PREPAYMENT RELIEF AND REFINANCING THEIR FEDERAL FINANCING BANK DEBT IN THE MARKET IF OGLETHORPE GOT THE APPROVAL OGLETHORPE AN ATLANTABASED ELECTRICGENERATION AND TRANSMISSION COOPERATIVE THAT DISTRIBUTES WHOLESALE POWER TO LOCAL ELECTRIC COOPERATIVES IS EXTREMELY DISAPPOINTED BY THE TREASURY'S DECISION SAID G STANLEY HILL AN OGLETHORPE SENIOR VICE PRESIDENT WHO FOUND IT STRANGE THAT A PROPOSAL TO TAKE THE COOPERATIVE OFF THE FEDERAL GOVERNMENT'S BOOKS WOULD BE REJECTED AT A TIME WHEN THE ADMINISTRATION IS TALKING ABOUT REINVENTING GOVERNMENT THE PURPOSE OF THE PROPOSED REFINANCING IS TO LOWER OGLETHORPE'S INTEREST COSTS OGLETHORPE'S DEBT IS GUARANTEED BY THE RURAL ELECTRIFICATION ADMINISTRATION AN ARM OF THE AGRICULTURE DEPARTMENT WHICH CONSIDERED THE MATTER TOGETHER WITH THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET AND THE TREASURY DEPARTMENT THE FFB IS A FINANCING ARM WITHIN TREASURY IT WAS CREATED NEARLY 20 YEARS AGO TO COORDINATE FEDERALLY ASSISTED BORROWING AND TO PROVIDE THE LOWEST FUNDING COSTS FOR FEDERAL AGENCIES AND FEDERALLY GUARANTEED BORROWERS THE FEDERAL FINANCING BANK HOLDS ABOUT 18 BILLION OF REABACKED DEBT WITH OGLETHORPE ITS LARGEST REAASSISTED BORROWER WHILE TURNING THUMBS DOWN ON OGLETHORPE'S REFINANCING PROPOSAL THE TREASURY SAID THERE MAY BE SOME VALUE IN ENCOURAGING FINANCIALLY STRONG RURAL ELECTRIC COOPERATIVES LIKE OGLETHORPE TO LEAVE THE REA LOAN PROGRAM AND THE FFB IT FLOATED A CONCEPT FOR A PROPOSAL TO ALLOW OGLETHORPE TO REFINANCE SOME 900 MILLION OF NEWER DEBT HELD BY THE FFB BUT OGLETHORPE'S MR HILL CALLED THIS CONCEPT CONFUSING AND SAID IT WOULD APPEAR TO LEAVE OGLETHORPE WITH MORE THAN 2 BILLION OF RELATIVELY HIGHCOST DEBT IN THE FEDERAL FINANCING BANK THE TREASURY IDEA WOULD HAVE THE BANK SELLING THE 900 MILLION IN DEBT TO A TRUSTEE WITHOUT AN REA GUARANTEE AND THE TRUSTEE SECURITIZING THE DEBT AND RESELLING IT IN THE MARKET AND GETTING ABOUT 50 MILLION LESS THAN THE SALES PRICE CHARGED BY THE BANK HOWEVER SOME INVESTMENT BANKERS WHO HAVE BEEN FOLLOWING THE OGLETHORPE MATTER CLOSELY WEREN'T AS GRIM SEEING THE GLIMMERINGS OF BUSINESS OPPORTUNITIES IN THE TREASURY'S STATEMENT THAT IT THE OMB AND THE AGRICULTURE DEPARTMENT ARE INTERESTED IN MAKING THE REA PROGRAM MORE RESPONSIVE TO THE MOST FINANCIALLY NEEDY BORROWINGS AND ENCOURAGING FINANCIALLY STRONGER BORROWERS LIKE OGLETHORPE TO STAND ON THEIR OWN A FEDERAL OFFICIAL INVOLVED IN THE DECISIONMAKING PROCESS SAID WE ARE OPEN TO THE IDEA OF AN EXIT FOR HEALTHY BORROWERS BUT STRESSED THAT THE TAXPAYER MUST REMAIN WHOLE 9401100078 940110 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENENDED FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO NNYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTEDC NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9401100077 940110 BUSINESS BRIEF FREEPORTMCMORAN INC OIL FIRM TO REPORT CHARGE OF 20 MILLION FOR 4TH PERIOD FREEPORTMCMORAN INC NEW ORLEANS SAID IT EXPECTS TO REPORT A FOURTHQUARTER CHARGE OF 20 MILLION RELATED TO THE DEVALUATION OF OIL RESERVES FOLLOWING THE RECENT SKID IN ENERGY PRICES IN THE FOURTHQUARTER OF 1992 THE ENERGY AND NATURALRESOURCES COMPANY HAD NET INCOME OF 192 MILLION OR 14 CENTS A SHARE ON REVENUE OF 4126 MILLION ALSO FREEPORTMCMORAN RESOURCE PARTNERS A PHOSPHATE MANUFACTURER AND OIL PRODUCER THAT IS 51OWNED BY FREEPORTMCMORAN INC EXPECTS TO REPORT A NONCASH CHARGE OF 60 MILLION IN THE QUARTER BECAUSE OF THE 25 DECLINE IN OIL PRICES IN THE FOURTHQUARTER OF 1992 FREEPORTMCMORAN RESOURCE HAD A NET LOSS OF 8 MILLION OR EIGHT CENTS A UNIT ON REVENUE OF 199 MILLION 9401100075 940110 LETTERS TO THE EDITOR BIGOTRY TARGETS KNOW VALUE OF SPEECH CODES IN YOUR DEC 22 STORY ON CAMPUS SPEECH CODES JUDICIALLY SUSPECT SOME OF THOSE INTERVIEWED CONTENDED SUCH CODES ARE AN OVERREACTION THAT THREATENS FREE SPEECH AS A MEMBER OF A MINORITY ATTENDING COLLEGE GRAD SCHOOL AND LAW SCHOOL DURING THE 1970S AND EARLY '80S I WOULD WAKE UP IN THE MORNING AND KNOW FOR A FACT THAT I WOULD BE THE TARGET OF BIGOTRY BEFORE THE DAY WAS OVER ALTHOUGH I WAS FORTUNATE IN NOT BEING THE OBJECT OF PHYSICAL ABUSE UNLIKE SOME ACQUAINTANCES I KNEW HOW POWERFUL VERBAL AND EVEN NONVERBAL HARASSMENT COULD BE OVER TIME SUCH CONSTANT BELITTLEMENT CAN AFFECT A STUDENT'S SELFIMAGE AND THE QUALITY OF HIS WORK IT'S NAIVE TO THINK THAT THREATS TO A STUDENT'S WELLBEING ARE MINOR IF THEY ARE NOT PHYSICAL SOME CAMPUS SPEECH CODES MAY BE AN OVERREACTION BUT THE FACT IS THERE IS SOMETHING TO REACT TO NO ONE SHOULD HAVE TO FACE HARASSMENT AS THE PRICE OF AN EDUCATION STUDENTS WHO HAVE BEEN SUBJECTED TO RIDICULE AND HAVE OBJECTED MAY BE LEARNING THAT GOING THROUGH CHANNELS IS INEFFECTIVE THERE'S NO REASON TO THINK THE MATTER WILL END THERE AFTER ALL BEING THE TARGET OF BIGOTRY ALSO PRODUCES INTENSE ANGER 9401100074 940110 FEDERATED DELAYS ACTION ON MACY PLAN BY JEFFREY A TRACHTENBERG AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN A MOVE TO AVOID ALIENATING MANAGEMENT OF RH MACY & CO FEDERATED DEPARTMENT STORES INC HAS INFORMALLY AGREED TO REFRAIN FROM TAKING ANY FURTHER ACTION FOR NOW ON ITS PROPOSAL TO MERGE WITH MACY ACCORDING TO THOSE FAMILIAR WITH THE SITUATION AS A RESULT FEDERATED WILL LIKELY WAIT UNTIL SEPT 15 FOR MACY TO FILE ITS OWN PLAN OF REORGANIZATION BEFORE FEDERATED SUGGESTS AN ALTERNATIVE FEDERATED IS EXPECTED TO CONTINUE MEETING WITH VARIOUS MACY CREDITOR GROUPS TO EXPLAIN ITS INTEREST IN MERGING WITH ITS DEPARTMENTSTORE RIVAL INCREASING PRESSURE ON MACY TO PRODUCE A PLAN THE ADVANTAGE OF THIS STRATEGY FOR FEDERATED IS THAT IT WILL LIKELY SEE MACY'S HAND AND THEN GET A CHANCE TO BETTER IT THE INFORMAL AGREEMENT COMES A WEEK AFTER FEDERATED ACQUIRED A SIGNIFICANT PORTION OF MACY'S SENIOR SECURED DEBT AND SAID IT WANTED TO MERGE WITH MACY WHICH IS OPERATING UNDER PROTECTION OF CHAPTER 11 OF THE US BANKRUPTCY CODE THE FEDERATED MOVE WAS GREETED FROSTILY BY MACY MANAGEMENT WHICH REASSERTED ITS DETERMINATION TO REMAIN INDEPENDENT FEDERATED AND MACY DECLINED TO COMMENT BUT THE PEOPLE CLOSE TO THE SITUATION SAID THE AGREEMENT FOLLOWED TALKS BETWEEN MACY CHAIRMAN MYRON ULLMAN III AND FEDERATED CHAIRMAN ALLEN QUESTROM THE DETENTE IS NOT COMPLETELY UNEXPECTED WHEN FEDERATED DISCLOSED EARLIER THIS MONTH THAT IT HAD ACQUIRED A SIGNIFICANT PORTION OF MACY'S SENIOR SECURED DEBT IT SAID THAT IT WAS INTERESTED IN WORKING WITH MACY'S MANAGEMENT THERE'S NOTHING TO BE GAINED BY WHIPPING PEOPLE INTO A FRENZY SAID ONE EXECUTIVE CLOSE TO THE SITUATION MACY STILL HAS AN EXCLUSIVE RIGHT TO FILE ITS OWN PLAN AND FEDERATED REALIZES THAT A HOSTILE CAMPAIGN WON'T HELP WITH ITS STRATEGY OF WORKING WITH MACY'S ON A CONSENSUAL PLAN A PLAN OF REORGANIZATION INVOLVES A DETAILED PAYOUT FOR EACH CREDITOR GROUP AND A TARGET DATE TO EMERGE FROM BANKRUPTCYCOURT PROTECTION MACY CURRENTLY OWES ITS CREDITORS ABOUT 6 BILLION BY SOME ESTIMATES THE DEPARTMENTSTORE COMPANY HAS A CURRENT VALUE OF ABOUT HALF THAT AMOUNT IN A CLOSEDCIRCUIT SATELLITEDELIVERED ADDRESS TO EMPLOYEES LAST FRIDAY MR ULLMAN SAID THAT THE BOARD IS VERY SATISFIED THAT OUR POSITION OF PREPARING OUR OWN PLAN IS THE APPROPRIATE DIRECTION FOR THIS COMPANY MR ULLMAN ALSO EMPHASIZED HIS POSITION THAT MACY IS NOT FOR SALE AND WILL NOT BE BROKEN UP SEPARATELY MACY IS EXPECTED TO REPORT TODAY THAT SALES AT STORES OPENED FOR AT LEAST ONE YEAR ROSE ONLY 17 IN DECEMBER ON AN ADJUSTED BASIS THE RETAILER IS IN THE PROCESS OF CLOSING SOME OF ITS ELECTRONICS DEPARTMENTS COMPARED WITH THE SAME PERIOD A YEAR AGO MACY OPERATES MANY OF ITS STORES IN CALIFORNIA AND THE NORTHEAST WHERE REGIONAL ECONOMIES REMAIN SLUGGISH MACY WILL ALSO DISCLOSE THAT ITS EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR DECEMBER ROSE 61 MILLION TO 266 MILLION FROM 205 MILLION IN THE YEAREARLIER PERIOD THOSE GAINS WERE ACHIEVED BY FURTHER COST CUTTING AND FEWER MERCHANDISE MARKDOWNS ON FRIDAY MEMBERS OF THE MACY BOARD HAD AN INFORMAL MEETING TO REVIEW THE COMPANY'S DECEMBER SALES PERFORMANCE AND PROGRESS ON THE COMPANY'S PLAN OF REORGANIZATION BOARD MEMBERS ALSO QUESTIONED MR ULLMAN ON THE FEDERATED PURCHASE OF MACY DEBT BUT MACY DECLINED TO DISCUSS THE MATTER THE MEETING WAS ATTENDED BY DIRECTORS INCLUDING PAUL W VAN ORDEN A FORMER GENERAL ELECTRIC CO EXECUTIVE NOW ASSOCIATED WITH THE COLUMBIA UNIVERSITY GRADUATE SCHOOL OF BUSINESS AND BEVERLY SILLS GREENOUGH THE FORMER OPERA SINGER AND MANAGING DIRECTOR OF THE METROPOLITAN OPERA BOTH DECLINED TO COMMENT LAURENCE A TISCH CHAIRMAN OF LOEWS CORP AND A MAJOR SHAREHOLDER IN MACY WAS OUT OF THE COUNTRY AND ACCORDING TO A MACY SPOKESWOMAN DIDN'T LISTEN IN ON THE MEETING BY TELEPHONE ON MARCH 15 MACY'S MANAGEMENT IS EXPECTED TO RETURN TO US BANKRUPTCY COURT IN LOWER MANHATTAN AND ASK THAT ITS EXCLUSIVE RIGHT TO FILE A PLAN OF REORGANIZATION BE EXTENDED FOR ANOTHER THREE TO SIX MONTHS FEDERATED WON'T CHALLENGE THAT REQUEST SAY THOSE FAMILIAR WITH THE RETAILER'S THINKING DESPITE THIS MACY'S SENIOR MANAGEMENT FACES GROWING PRESSURE TO FILE A PLAN OF REORGANIZATION MACY WILL CERTAINLY STILL FEEL THE PRESSURE TO ACCELERATE THE PLANNING PROCESS IT HAD ORIGINALLY INTENDED SAID WALTER LOEB A RETAIL CONSULTANT AND PUBLISHER OF THE LOEB RETAIL LETTER FEDERATED WHICH OPERATED UNDER BANKRUPTCYCOURT PROTECTION FROM JANUARY 1990 TO FEBRUARY 1992 TOOK ABOUT 14 MONTHS TO CRAFT A PLAN OF REORGANIZATION THAT WAS ACCEPTABLE TO CREDITORS MACY BY CONTRAST HAS WORKED ON ITS PLAN FOR ONLY FOUR MONTHS MACY FILED FOR BANKRUPTCYCOURT PROTECTION IN JANUARY 1992 FEDERATED WHICH OPERATES SUCH DEPARTMENTSTORE DIVISIONS AS BLOOMINGDALE'S AND RICH'S PAID 4493 MILLION TO ACQUIRE HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S CLAIM IN MACY'S CHAPTER 11 BANKRUPTCY REORGANIZATION AND HAS AN OPTION TO ACQUIRE THE OTHER HALF THE FACT THAT FEDERATED WILL LIKELY HAVE CLAIMS TOTALING A HALF BILLION DOLLARS OR MORE MAY HELP IT IN ITS EFFORTS TO PERSUADE MACY TO ACCEPT A CONSENSUAL PLAN ESPECIALLY IF MACY IS FORCED TO REDEEM THAT INTEREST IN CASH 9401100073 940110 LETTERS TO THE EDITOR SAME OLD THING DIFFERENT NAME LIKE SHAWN SULLIVAN AUTHOR OF THE DEC 29 RULE OF LAW COLUMN DOUBTS ABOUT A HEAD START IN THE PAPER CHASE AFFIRMATIVE ACTION HAS CAUSED ME A CERTAIN AMOUNT OF UNEASE A FEW YEARS AGO WHILE A REPORTER AT A DIFFERENT NEWSPAPER I SIGNED UP FOR A MONTHLONG FELLOWSHIP PROGRAM AT A RENOWNED SCHOOL OF JOURNALISM THE APPLICATION ASKED ABOUT MY RACE I LEFT THAT PART BLANK NONE OF THEIR BUSINESS I FIGURED THE NEXT WEEK I GOT A PHONE CALL FROM THE PROFESSOR WHO RAN THE FELLOWSHIP WE NEED TO KNOW YOUR RACE HE SAID BECAUSE WE MUST ENSURE DIVERSITY IN THE PROGRAM IF YOU WON'T TELL US YOU'RE OUT OF THE RUNNING I TOLD HIM AND I GOT IN WHAT THE HECK AFTER ALL THESE CENTURIES BEING BLACK IS FINALLY PAYING OFF MY DADDY REST HIS SOUL WOULD HAVE BEEN PROUD AND YET THE WHOLE EXPERIENCE LEFT ME FEELING EVER SO SLIGHTLY SOILED THE WAY MY DADDY PROBABLY FELT WHEN HE HAD TO SEEK OUT A WATER FOUNTAIN WITH A COLORED SIGN HANGING OVER IT 9401100072 940110 PEPPER ANDSALT OF TALK SHOW HOST EB DE VITO 9401100071 940110 GM HALTS PRODUCTION AT A MISSOURI PLANT UNTIL FALL OF 1995 DETROIT GENERAL MOTORS CORP SAID IT TEMPORARILY CLOSED ITS WENTZVILLE MO ASSEMBLY PLANT AND TRANSFERRED PRODUCTION OF ITS BUICK PARK AVENUE MODEL TO ANOTHER PLANT IN FLINT MICH A GM SPOKESWOMAN SAID THE WENTZVILLE LOCATION PRODUCED ITS LAST PARK AVENUE ON DEC 16 IT WILL REMAIN IDLE UNTIL FALL 1995 WHEN IT WILL BEGIN PRODUCTION OF A NEW FULLSIZE VAN SEPARATELY GM SAID ITS SATURN ASSEMBLY PLANT IN SPRING HILL TENN WILL RESUME PRODUCTION TODAY AFTER BEING IDLED LAST WEEK AS PREVIOUSLY REPORTED THE ASSEMBLY PLANT WAS SCHEDULED FOR A ONEWEEK EXTENDED CHRISTMAS HOLIDAY TO REDUCE BLOATED INVENTORIES AND FOR SOME RETOOLING FOR THE 1995 MODEL YEAR FORD MOTOR CO SAID ITS DEARBORN MICH ASSEMBLY PLANT WHICH BUILDS THE REDESIGNED MUSTANG MODEL WAS TO WORK OVERTIME ON SATURDAY SEVERAL OTHER FORD ASSEMBLY PLANTS WORKED DAILY OVERTIME LAST WEEK CHRYSLER CORP SAID ITS ASSEMBLY PLANTS IN ST LOUIS DETROIT WARREN AND STERLING HEIGHTS MICH NEWARK NJ TOLEDO OHIO AND BRAMALEA AND WINDSOR ONTARIO WERE TO WORK OVERTIME ON SATURDAY CHRYSLER SAID IT PLANS OVERTIME THIS WEEK AT THE PLANTS IN DETROIT STERLING HEIGHTS WARREN NEWARK AND WINDSOR ALTOGETHER THE DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD 244659 CARS AND TRUCKS LAST WEEK IN THE WEEK A YEAR EARLIER THE AUTO MAKERS WERE SHUT DOWN FOR THE CHRISTMAS HOLIDAY 9401100070 940110 WHO'S NEWS SCALING CLIFFS TAUGHT HER LEADERSHIP NOW TO CONQUER WORLD OF HOME SHOPPING BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CANDICE M CARPENTER STOPPED SCALING SHEER ROCK FACES AND SLEEPING ON FOOTWIDE LEDGES YEARS AGO BECAUSE SHE SAYS SHE HAD GOTTEN AS GOOD AS I WAS GOING TO GET AT MOUNTAIN CLIMBING TODAY THE 41YEAROLD HAS A DIFFERENT KIND OF PEAK TO SCALE IN JULY MS CARPENTER WAS HIRED BY QVC NETWORK INC'S CHAIRMAN BARRY DILLER TO DEVELOP HIS LATEST BRAINCHILD A TV SHOPPING SERVICE CALLED Q2 THE SERVICE IS SCHEDULED TO LAUNCH IN MAY ON CABLE SYSTEMS Q2 SAYS MS CARPENTER WILL BE AN ELECTRONIC SPECIALTY STORE THAT PROVIDES SIMPLE CLEAN SHOPPING SOLUTIONS FOR PEOPLE FACING TOO MANY CHOICES AND TOO LITTLE TIME PROGRAMMING WILL COVER SEVEN CATEGORIES SPORTS AND FITNESS HEALTH AND BEAUTY FAMILY HOME ENTERTAINMENT STYLE AND TRAVEL Q2 WILL TEST MR DILLER'S PROPOSITION THAT THE HOMESHOPPING MARKET CAN BE VASTLY EXPANDED BY ATTRACTING MORE AFFLUENT SOPHISTICATED CONSUMERS LESS THAN 10 OF THE 44 MILLION VIEWERS WHO SUBSCRIBE TO QVC BUY ANYTHING TYPICAL FOR THE INDUSTRY SO EVEN A TINY PERCENTAGE GAIN COULD TRANSLATE INTO MILLIONS OF INCREMENTAL DOLLARS IN SALES BUT TO ATTRACT NEW VIEWERS PARTICULARLY MEN WHO MAKE UP ABOUT 30 OF HOME SHOPPERS MS CARPENTER MUST ERASE THE STIGMA OF TV SHOPPING SERVICES WHICH ARE SEEN AS HAWKERS OF JEWELRY AND CLOTHES TO HOUSEWIVES AND SHE MUST CONVINCE CABLE OPERATORS MANY OF WHICH HAVE LIMITED CHANNEL CAPACITY THAT Q2 WILL BE A MONEYMAKER NOT A DUPLICATE SERVICE CABLE OPERATORS USUALLY GET A 5 COMMISSION ON THE SALES IN MANY WAYS MS CARPENTER PERSONIFIES THE EDUCATED ACTIVE CONSUMER SHE IS TARGETING BEFORE GETTING AN MBA AT HARVARD BUSINESS SCHOOL SHE BECAME A MOUNTAINCLIMBING INSTRUCTOR FOR OUTWARD BOUND AN OUTDOOR PROGRAM DESIGNED TO INSPIRE TEAMWORK AND HONE SURVIVAL SKILLS SHE LATER SPENT SIX YEARS AS VICE PRESIDENT OF CONSUMER MARKETING FOR AMERICAN EXPRESS CO WHERE SHE WORKED IN TRAVELRELATED SERVICES AND REPOSITIONED HIGHEND MEMBERSHIP SERVICES MS CARPENTER JOINED TIME WARNER INC IN 1989 AND HELPED LAUNCH ITS TIMELIFE TELEVISION AND VIDEO OPERATIONS IN WASHINGTON DC AS PRESIDENT OF THE TIMELIFE TELEVISION AND VIDEO UNIT NOW PART OF TIME WARNER SHE ORCHESTRATED A RUNAWAY HIT OUT OF TRIALS OF LIFE A NATUREVIDEO COLLECTION THAT PORTRAYED GRAPHICALLY VIOLENT ENCOUNTERS IN THE WILD NORMALLY NATURE PRODUCTIONS WHICH SELL SOME 100000 SUBSCRIPTIONS APPEAL PRIMARILY TO WOMEN BUT MS CARPENTER MARKETED THE VIDEOS MAINLY TO MEN DURING FOOTBALL GAMES AND SPORTING EVENTS SELLING MORE THAN A MILLION SUBSCRIPTIONS INTRIGUED BY INTERACTIVITY MS CARPENTER BEGAN TO EXPLORE THE FUTURE OF TELEVISION IN HER LAST SEVERAL MONTHS AT TIMELIFE TROLLING FOR IDEAS IN LOS ANGELES AND NEW YORK BEFORE RESIGNING IN JUNE SHE WROTE TO MR DILLER EXPRESSING HER THOUGHTS ON THE FUTURE OF TV PROGRAMMING HE SAYS HE WAS IMPRESSED BY HER IDEAS AND ANSWERED IMMEDIATELY OFFERING HER A JOB SOON AFTERWARD MR DILLER EXTOLS MS CARPENTER'S ORGANIZING SKILLS WHICH WILL BE A CRITICAL FACTOR AS THE VISION FOR Q2 UNFOLDS THE CONCEPT FOR THIS THING WILL EVOLVE AND CHANGE UP UNTIL THE TIME WE LAUNCH MR DILLER SAYS CANDICE IS HIGHLY ORGANIZED AND FROM A STANDING START SHE CAN FORM A TEAM OF PEOPLE WHO AT FIRST CUT ARE QUITE GOOD AT WHAT THEY DO QVC HAS BEEN VAGUE ABOUT PLANS FOR THE NETWORK AND HASN'T PRODUCED ANY SIGNIFICANT PILOT PROGRAMS TO SHOW CABLE OPERATORS AND IT HAS CHANGED THE FORMAT SINCE ANNOUNCING Q2 LAST YEAR LAST MONTH FOR EXAMPLE THE COMPANY SAID Q2 WOULD RUN ON WEEKENDS WHILE DURING THE WEEK A SISTER SERVICE ON Q WOULD OFFER APPAREL AND ACCESSORIES FOR A TRENDCONSCIOUS AUDIENCE IN THEIR TWENTIES THE SOCALLED GENERATION X MS CARPENTER AND MR DILLER SAY EVERYTHING IS ON TRACK MR DILLER SAYS MS CARPENTER HAS HIS FULL CONFIDENCE MS CARPENTER SAYS MR DILLER HAS FOUND THE TIME TO DEAL WITH Q2 ISSUES DESPITE THE TAKEOVER BATTLE AGAINST VIACOM INC FOR CONTROL OF PARAMOUNT COMMUNICATIONS WHICH HAS BEEN RAGING SINCE SEPTEMBER Q2 ALSO FACES NEW COMPETITION FROM SEASONED RETAILERS DEVELOPING THEIR OWN SHOPPING SERVICES SUCH AS RH MACY AND CATALOGER SPIEGEL INC AND HOME SHOPPING NETWORK INC THE OTHER DOMINANT HOMESHOPPING SERVICE WHICH HAD PLANNED TO MERGE WITH QVC REMAINS QVC'S TOUGHEST COMPETITOR EVERY IDEA FOR A SHOPPING CHANNEL SOUNDS GREAT UNTIL IT'S UP AND RUNNING SAYS CRAIG BIBB AN ANALYST WITH PAINEWEBBER THE BOTTOM LINE IS THEY NEED TO PULL IN NEW VIEWERS UNDAUNTED MS CARPENTER PREDICTS A PROSPEROUS FUTURE FOR Q2 THERE'S NO REASON WHY Q2 CAN'T BE AS BIG AS QVC SHE SAYS THAT'S A TALL ORDER HOWEVER QVC LAST YEAR HAD PROFIT OF 551 MILLION ON REVENUE OF 107 BILLION Q2 IS STARTING OUT AS A REPLACEMENT FOR THE QVC FASHION CHANNEL WHICH REACHED ONLY SEVEN MILLION SUBSCRIBERS AND GENERATED LESS THAN 10 OF QVC'S SALES BEFORE IT WAS SCRAPPED LAST YEAR THE NEW SERVICE HOPES TO REACH 12 MILLION SUBSCRIBERS BY YEAR'S END AND WILL EVOLVE INTO AN ELECTRONIC GREENHOUSE THAT WILL SPIN OFF NEW SERVICES MS CARPENTER SAYS AT Q2 MS CARPENTER PLANS TO MIX INFORMATIONAL PROGRAMMING HOSTED BY EXPERTS OR CELEBRITIES WITH PRODUCT HARDSELL IN THE HOME CATEGORY FOR EXAMPLE CELEBRITY RESTAURATEUR PINO LUONGO IS EXPECTED TO EXPLAIN WHAT POTS AND PANS ARE NEEDED FOR A BACHELOR'S KITCHEN OR WHAT TOOLS AND FOODS ARE NEEDED FOR THE PERFECT DINNER PARTY THE NETWORK PLANS TO SELL POTS AND PANS OR PLATES AND EVEN PASTA IN THE SAME HOUR OTHER SEGMENTS COULD COVER ANYTHING FROM REDECORATING AN APARTMENT IN A WEEKEND TO STARTING A SPRING GARDEN MS CARPENTER SAYS JEWELRY WHICH ACCOUNTS FOR NEARLY HALF OF QVC'S SALES WILL ACCOUNT FOR ONLY A SMALL PORTION OF Q2'S OFFERINGS BY PRESENTING A WELLEDITED RANGE OF BRANDSPECIFIC PRODUCTS MS CARPENTER HOPES TO REACH VIEWERS 18 TO 44 YEARS OLD WITH INCOMES OF AT LEAST 40000 BUT LITTLE TIME TO SHOP THEY'RE NOT AFFLUENT BUT THEY HAVE ENOUGH MONEY TO ENJOY WHAT THEY'RE DOING MS CARPENTER SAYS OF Q2'S TARGET AUDIENCE THEY'RE PAST THE CRATE STAGE FOR FURNITURE THOUGH QVC IS BASED IN WEST CHESTER PA MS CARPENTER WORKS OUT OF A SMALL NEW YORK OFFICE ON THE SAME FLOOR AS DESIGNER DIANE VON FURSTENBURG WHO INTRODUCED MR DILLER TO QVC AND IS HIS COMPANION AND PARTNER MS CARPENTER HAS ASSEMBLED HER OWN TEAM OF BUYERS AND MARKETERS INCLUDING FORMER EXECUTIVES OF RETAILER BARNEY'S AND ATHLETICSHOE MAKER REEBOK INTERNATIONAL INC THESE DAYS MS CARPENTER IS LISTENING TO PRODUCT PRESENTATIONS BY OUTSIDE VENDORS HER OWN MERCHANTS AND JUST ABOUT ANYONE WITH AN INTUITION OF WHAT MIGHT SELL RECENTLY SHE HEARD A PITCH FROM A Q2 RECEPTIONIST THE WOMAN PRESENTED CHILDREN'S BOOKS AND STATIONARY WHICH THE NETWORK IS PLANNING TO OFFER IN MAY I'LL LISTEN TO ANYONE WITH A GOOD IDEA SAYS MS CARPENTER 9401100069 940110 SAUDI ARABIA MAY AGREE TO RESTRUCTURE 10 BILLION IT OWES US DEFENSE FIRMS BY THOMAS E RICKS AND ANDY PASZTOR STAFF REPORTERS OF THE WALL STREET JOURNAL SAUDI ARABIA IS CLOSE TO AGREEING ON A PLAN TO RESTRUCTURE 10 BILLION IN PAYMENTS DUE OVER THE NEXT TWO YEARS TO FIVE OF THE BIGGEST US DEFENSE CONTRACTORS THE SAUDI AMBASSADOR TO THE US SAID PRINCE BANDAR BIN SULTAN SAID THAT ON SATURDAY TOP EXECUTIVES OF MCDONNELL DOUGLAS CORP GENERAL DYNAMICS CORP FMC CORP RAYTHEON CO AND THE HUGHES AIRCRAFT UNIT OF GENERAL MOTORS CORP PRESENTED SAUDI OFFICIALS WITH SEVERAL OPTIONS FOR RESTRUCTURING THE PAYMENTS I THINK SATURDAY WE REACHED AN AGREEMENT IN PRINCIPLE PRINCE BANDAR SAID IN AN INTERVIEW AT HIS HOME YESTERDAY WE WOULD LIKE TO DO THREE THINGS MAINTAIN THE OVERALL NUMBER OF EQUIPMENT PURCHASED MAINTAIN THE OVERALL DOLLAR VALUE AND WORK ON A SCHEDULE OF PAYMENTS THAT DOESN'T HURT OUR PARTNERS AND FRIENDS IN THE US DEFENSEINDUSTRIAL COMPLEX AND IN THE LABOR FORCE TODAY HE ADDED THE TENTATIVE PLAN WILL BE PRESENTED TO TREASURY SECRETARY LLOYD BENTSEN COMMERCE SECRETARY RON BROWN DEPUTY DEFENSE SECRETARY WILLIAM PERRY AND OFFICIALS IN THE PENTAGON'S FOREIGN MILITARY SALES PROGRAM WHO ACT AS MIDDLEMEN ON ARMS SALES TO THE SAUDIS HE SAID HE EXPECTS THE PLAN TO BE MADE FINAL BY THE END OF THE MONTH THE SAUDI DISCUSSIONS REFLECT THE CASHFLOW PROBLEMS OF THE OILRICH KINGDOM BUT ALSO CONTAIN A POLITICAL ELEMENT WITH OIL PRICES LOW THE SAUDIS ARE WORRIED BY MOVEMENT AT THE UNITED NATIONS TOWARD PARTIALLY LIFTING ECONOMIC SANCTIONS ON IRAQ AND ALLOWING SADDAM HUSSEIN TO SELL OIL ON THE WORLD MARKET THE OPENNESS WITH WHICH THE SAUDIS ARE ACTING IS A WAY OF WARNING AGAINST LIFTING SANCTIONS THE OPENING ROUND OF SAUDI DISCUSSIONS WITH THE DEFENSE CONTRACTORS WAS REPORTED IN FRIDAY'S EDITIONS OF THE WASHINGTON POST IN ADDITION THE SAUDIS ARE DELIVERING A POINTED MESSAGE TO THE CLINTON ADMINISTRATION IMPLICIT IN THE SAUDI DISCUSSIONS IS THE WARNING THAT IF OIL PRICES SAG FURTHER CANCELLATION OF SOME ARMS ORDERS WOULD BE CONSIDERED LARGESCALE CANCELLATIONS WOULD DEAL A SEVERE BLOW TO THE US AEROSPACE INDUSTRY WHICH IS CONCENTRATED IN SOUTHERN CALIFORNIA AND THREATEN THAT REGION'S ECONOMIC RECOVERY UNDERCUTTING THE CALIFORNIA RECOVERY WOULD HURT BILL CLINTON'S CHANCES OF CARRYING THE STATE IN 1996 WHICH IS CONSIDERED CRUCIAL TO HIS REELECTION THUS THE US AND PRESIDENT CLINTON IN PARTICULAR WOULD BE MADE TO FEEL THE SAUDI ECONOMIC PAIN WHILE SUCH A CALCULATION MAY SEEM UNUSUAL THE SAUDIS ARE ACCUSTOMED TO MIXING THEIR PURCHASES WITH POLITICS ONE REASON THEY FAVOR BUYING USMADE AIRLINERS OVER THOSE FROM AIRBUS INDUSTRIE IS THEIR UNHAPPINESS WITH EUROPEAN RELUCTANCE TO PROVIDE MILITARY AID TO THE BOSNIAN MUSLIMS THEY THE COMPANIES TOLD US IF WE CANCEL THAT WILL AFFECT THEM DRAMATICALLY SAID PRINCE BANDAR WE ARE TRYING VERY HARD TO DO IT SO THERE WILL BE NO EFFECT ON THE AMERICAN WORKER UNDER THE TENTATIVE PLAN SAUDI ARABIA WOULD AGREE TO PAY 15 BILLION IN CASH THIS YEAR AND NEXT IT WOULD COVER ITS REMAINING OBLIGATION BY HAVING THE COMPANIES TAKE OUT LOANS THAT WOULD BE GUARANTEED BY THE SAUDI GOVERNMENT THE SAUDIS HAVE UNDERSCORED THAT THEY WILL PAY THE INTEREST ON THE LOANS THE TOTAL AMOUNT OF SCHEDULED SAUDI ARMS PURCHASES IS ABOUT 41 BILLION THIS YEAR AND 6 BILLION IN 1995 MEANING THAT THE COMPANIES WILL BE PAID ABOUT 7 BILLION IN LOANS UNLESS SOME ARMS DELIVERIES ARE RESCHEDULED SOME RESCHEDULING OF DELIVERIES IS POSSIBLE BUT THE SAUDIS AND THEIR REPRESENTATIVES HAVE BEEN EMPHATIC IN RECENT DAYS THAT THEY AREN'T CURRENTLY CONTEMPLATING CANCELING ANY ORDERS ESSENTIALLY THE FIVE US DEFENSE COMPANIES WOULD DIVVY UP THE 15 BILLION IN CASH AND THEN TAKE AS MUCH IN LOANS AS THEY NEEDED TO MAINTAIN MINIMUM PRODUCTION LEVELS REQUIRED TO AVOID LAYOFFS AND FINANCIAL DISRUPTION ANALYSTS EXPECT THE COMPANIES TO REDUCE THE IMPACT OF THE NEW DEBT ON THEIR BALANCE SHEETS BY SELLING THE DEBT OFF TO THIRD PARTIES AS RECEIVABLES SCHEDULED SAUDI ARMS PURCHASES FROM THE US THROUGH THE END OF THE DECADE TOTAL ABOUT 20 BILLION PRINCE BANDAR SAID IN ADDITION TO ARMS PURCHASES THE SAUDIS HAVE BEEN DISCUSSING PLACING AS MUCH AS 6 BILLION IN ORDERS FOR COMMERCIAL AIRLINERS FROM BOEING CO AND MCDONNELL DOUGLAS WHILE BOEING HASN'T YET SUBMITTED ITS FINAL OFFER THE COMMERCIAL THING IS A DONE DEAL SAID A PERSON FAMILIAR WITH THE DISCUSSIONS AT THE SATURDAY MEETING IN WASHINGTON WHICH ALSO WAS ATTENDED BY THE SAUDI DEPUTY FINANCE MINISTER AND THE HEAD OF THE SAUDI MONETARY AGENCY WHICH ACTS AS THE NATION'S CENTRAL BANK THE SAUDIS EMPHASIZED THAT THEY DON'T INTEND TO CANCEL ANY ORDERS BUT TOLD THE COMPANIES THEY WON'T OBJECT IF OTHER ORDERS ARE MOVED UP IN FRONT OF THEIRS INDEED THE SAUDIS WOULD REGARD IT AS A MIDEAST PEACE DIVIDEND IF ISRAEL DECIDES TO PURCHASE F15 FIGHTERS AND TAKES DELIVERY OF SOME AHEAD OF THE SAUDIS DELIVERIES TO THE SAUDIS HAD BEEN SCHEDULED TO BEGIN NEXT YEAR OF THE FIVE COMPANIES INVOLVED IN THE DISCUSSIONS MCDONNELL DOUGLAS WHICH MAKES THE F15 HAS THE MOST AT STAKE THE SAUDIS HAVE ORDERED 72 OF THE STATEOFTHEART FIGHTERS FOR A TOTAL PRICE OF 9 BILLION SO FAR THE COMPANY HAS RECEIVED ONLY ABOUT 750 MILLION IN LONGLEAD MONEY CONFRONTING SERIOUS PROBLEMS IN BOTH ITS COMMERCIAL AND DEFENSE OPERATIONS MCDONNELL DOUGLAS MAY BE IN THE WEAKEST POSITION TO ACCEPT TEMPORARY FINANCING ON THE OTHER HAND THE COMPANY BATTLED HARD TO SNARE THE SAUDI SALE TELLING CONGRESS AND THE WHITE HOUSE AT THE TIME THAT THERE WAS NO OTHER WAY TO KEEP THE F15 LINE OPEN AND IN THE PAST FEW DAYS INDUSTRY OFFICIALS SAID THE LARGEST US DEFENSE FIRM HASN'T BALKED AT THE SAUDI REQUEST MCDONNELL DOUGLAS HAS PROJECTED AS MUCH AS 600 MILLION IN SAUDI F15 REVENUE THIS YEAR PRIOR TO THE WEEKEND SESSION ACCORDING TO INDUSTRY OFFICIALS THE COMPANY DRAFTED A SERIES OF PROPOSALS TO ASSIST THE SAUDIS RANGING FROM REDUCED SPAREPARTS PURCHASES TO STRETCHING OUT DELIVERIES OF CERTAIN MISSILES AND SUPPORT EQUIPMENT DESIGNED FOR THE KINGDOM'S F15S IN ST LOUIS A SPOKESMAN FOR THE COMPANY SAID ON FRIDAY THAT NO OUTRIGHT CANCELLATIONS WERE BEING DISCUSSED ADDING THAT THE COMPANY HAS EVERY INDICATION THAT THE PROGRAM IS GOING TO MOVE FORWARD ON THE SCHEDULE THAT HAS BEEN LAID OUT HUGHES AIRCRAFT HAS ABOUT 25 BILLION IN SAUDI ORDERS PENDING INCLUDING SOME 15 BILLION FOR RADAR GEAR AND OTHER WORK ON F15S AND 900 MILLION FOR THE PEACE SHIELD AIRDEFENSE SYSTEM HUGHES SPOKESMEN DECLINED TO COMMENT ON THE DISCUSSIONS WITH THE SAUDIS BUT INSIDERS SAID THAT SAUDI MILITARY OFFICIALS HAVE INDICATED THAT THE AIR DEFENSE PROGRAM WON'T BE SIGNIFICANTLY IMPACTED BY THE PENDING FINANCING PLANS GENERAL DYNAMICS IS EXPECTING ABOUT 300 MILLION IN REVENUE THIS YEAR FROM TANK SALES TO SAUDI ARABIA COMPLETING AN ORDER OF 315 M1A2S THAT SALE ALMOST CERTAINLY WON'T BE AFFECTED AND A COMPANY SPOKESMAN SAID FRIDAY THAT THE SAUDI CASH PROBLEM ISN'T EXPECTED TO HAVE ANY MATERIAL IMPACT ON GENERAL DYNAMICS BUT THE COMPANY'S HOPES FOR ADDITIONAL SAUDI SALES ARE LIKELY TO BE AFFECTED A RAYTHEON SPOKESMAN SAID FRIDAY THAT THE COMPANY'S SALES OF THE PATRIOT MISSILE SYSTEM ARE STILL ON TRACK FMC'S SALES TO SAUDI ARABIA OF BRADLEY FIGHTING VEHICLES ARE ALMOST COMPLETED WITH 288 OF 400 DELIVERED 9401100068 940110 BUSINESS BRIEF IMC FERTILIZER GROUP INC CHARGE OF 19 MILLION STEMS FROM OIL GAS INVESTMENT IMC FERTILIZER GROUP INC SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 19 MILLION FOR THE SECONDQUARTER ENDED DEC 31 RELATED TO ITS INVESTMENT IN AN OILANDGAS PARTNERSHIP THE MAKER OF FERTILIZERS EARNED 39 MILLION OR 18 CENTS A SHARE ON SALES OF 1975 MILLION A YEAR EARLIER THE NORTHBROOK ILL COMPANY SAID THAT DUE TO THE RECENT DECLINE IN OIL PRICES THE VALUE OF ITS OILANDGAS INVESTMENT IN A PARTNERSHIP WITH FREEPORTMCMORAN RESOURCES LP AND HOMESTAKE MINING CO IS LESS THAN THE CARRYING VALUE OF ITS INVESTMENT IN THE PARTNERSHIP IMC HAS A 25 INVESTMENT IN THE PARTNERSHIP IMC SAID THE AMOUNT OF THE CHARGE WILL BE ADJUSTED BASED ON THE PRICE OF OIL AT THE TIME IT CLOSES ITS FISCAL SECONDQUARTER BOOKS 9401100067 940110 THE JAPANESE PUBLIC KEEPS A WARY EYE ON GRAINS OF TRUTH WILL FOREIGN RICE BE AS GOOD AS THE DOMESTIC VARIETIES WORSE WILL IT BE BETTER BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOTTORI JAPAN FIVE MOUNDS OF STEAMING WHITE RICE LOOM IN FRONT OF YOSHITARO YAMANE FOUR ARE FOREIGN AND ONE IS JAPANESE CAN HE TELL WHICH IS WHICH THE 67YEAROLD RICE FARMER BRIMS WITH CONFIDENCE ALL HIS LIFE IN THIS PROVINCIAL SOUTHERN TOWN HE HAS CULTIVATED JAPANESE RICE AND SAVORED ITS SUBTLE FLAVOR HE KNOWS HIS RICE BY HEART MR YAMANE TASTES MASTICATES SELECTS A VARIETY THAT HAS JUST THE RIGHT STICKINESS AND PROCLAIMS IT JAPANESE HE IS SURPRISED TO LEARN THAT IT'S A VARIETY CALLED CALROSE FROM CALIFORNIA HE TASTES A DIFFERENT SAMPLE FROWNS AND DESCRIBES IT AS SOGGY AND SMELLY THAT TURNS OUT TO BE JAPANESE KOSHIHIKARI THE VERY RICE MR YAMANE GROWS HIMSELF MORTIFIED MR YAMANE SNEAKS FROM THE ROOM JAPAN'S DECISION TO END ITS PROHIBITION ON THE SALE AND POSSESSION OF FOREIGN RICE HAS OPENED AN ANXIOUS NEW PHASE IN THE INTERNATIONAL CULTURALSUPERIORITY SWEEPSTAKES THINGS AREN'T YET AS OVERHEATED IN JAPAN AS THEY ARE IN SOUTH KOREA WHICH RECENTLY LOST ITS PRIME MINISTER IN A DISPUTE OVER FOREIGN RICE OR IN FRANCE WHICH RISKED SCUTTLING THE WORLDTRADE AGREEMENT LAST MONTH OVER IMPORTED MOVIES BUT IT HAS BEEN AN ARTICLE OF FAITH HERE FOR GENERATIONS THAT JAPANESE RICE IS SIMPLY THE BEST IN THE WORLD THE NATION WATCHES GRAVELY AS THAT PRESUMPTION IS TESTED JAPAN HAS AGREED AS PART OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO OPEN ITS MARKET TO SOME RICE IMPORTS BY 1995 EVEN AS IT WAS NEGOTIATING THE FINAL DETAILS OF THAT AGREEMENT THE COUNTRY EXPERIENCED A DISASTROUS RICE HARVEST LAST FALL EMERGENCY SHIPMENTS OF FOREIGN RICE ALREADY ARE ARRIVING HERE BUT THE JAPANESE GOVERNMENT IS KEEPING THEM UNDER LOCK AND KEY IN WAREHOUSES PLANNING EVENTUALLY TO BLEND THE IMPORTS WITH STOCKS OF JAPANESE RICE IN THE HOPE THAT CONSUMERS WON'T NOTICE TECHNICALLY IT REMAINS ILLEGAL TO BUY SELL OR SERVE FOREIGN RICE HERE WHICH IS WHY THE PRODUCERS OF A VARIETY TELEVISION SHOW FLEW A GROUP OF JAPANESE CELEBRITIES TO HAWAII RECENTLY TO HOLD A TELEVISED NAME THAT RICE COMPETITION THEY NIBBLED RICE BALLS MADE OF FOREIGN AND JAPANESE RICE ALL BUT ONE CONTESTANT CORRECTLY PICKED OUT THE JAPANESE RICE THE PANELISTS MADE FUN OF THE ONE WHO GUESSED WRONG NIKKEI TRENDY A MONTHLY MAGAZINE SURREPTITIOUSLY IMPORTED RICE FROM ALL OVER THE WORLD LAST OCTOBER TO CONDUCT A TASTETEST OF ITS OWN IT FOUND THAT SOME THAI RICE CRACKED WHEN IMMERSED IN WATER WHICH MAKES RICE SOGGY TESTERS ALSO FOUND THAT BOTH THAI AND CALIFORNIAN RICE SMELLED FUNNY THE JAPANESE RICE WAS RANKED FIRST FOLLOWED BY BLENDS OF CALIFORNIAN AND JAPANESE RICE ONE OUTSPOKEN NEWSCASTER DID HIS OWN TASTE TEST IN THE MIDDLE OF A RECENT TELEVISION NEWS SHOW HE SAID HE LIKED CALIFORNIAN RICE BETTER THAN JAPANESE RICE AND THEN QUICKLY ADDED MAYBE I'M NOT SUPPOSED TO SAY THINGS LIKE THIS EVEN THE JAPANESE GOVERNMENT RECENTLY HELD A TASTE TEST SORT OF IT ASSEMBLED A GROUP OF 17 PEOPLE INCLUDING AGRICULTURE MINISTER EIJIRO HATA AND GAVE THEM SAMPLES OF DOMESTIC AND FOREIGN RICE TO EAT BEFORE TELEVISION CAMERAS QUESTIONS WERE NOT PERMITTED PREFERENCES WERE TALLIED BUT NOT DISCLOSED AN OFFICIAL GOVERNMENT STATEMENT AFTERWARD DECLARED THAT THE PANELISTS HAD FOUND FOREIGN RICE MORE TASTY THAN THEY HAD EXPECTED WITH THE EXCEPTION OF LONGGRAIN THAI RICE JAPANESE TELEVISION TRACKS THE PROGRESS OF SHIPS BEARING FOREIGN RICE EACH TIME A SHIP LOADED WITH FOREIGN RICE HAS ENTERED THE DOCKS THAT HAS BECOME THE LEAD ITEM ON THE TELEVISION NEWS ON ONE RECENT BROADCAST THE CAMERA ZOOMED IN ON THE BAGS OF RICE AS THEY ROLLED OUT A GROUP OF UNIFORMED INSPECTION OFFICERS STUCK A SPECIAL RICEEXTRACTING TOOL INTO A FEW SELECTED BAGS AND SUCKED OUT A FEW GRAINS OF RICE THE INSPECTORS PLACED THE GRAINS ON THEIR GLOVED HANDS TOOK A LONG HARD LOOK AND FINGERED THEM TO CHECK FOR CRACKED GRAINS ALL THIS IS A BIT MUCH FOR JUNZO ITO A RICE WHOLESALER NEAR TOKYO MOST CONSUMERS DON'T KNOW WHAT THEY'RE TALKING ABOUT HE CHUCKLES IN A RECENT BLIND TASTE TEST FOR SIX KINDS OF RICE INCLUDING AMERICAN AND AUSTRALIAN RICE SOME 30 HOUSEWIVES RATED JAPANESE RICE FIRST AND LAST HE SAYS MOST WHITE RICE FALLS INTO ONE OF THREE DIFFERENTTASTING CATEGORIES LONG GRAIN MEDIUM GRAIN AND THE SHORT ROUND GRAIN GENERICALLY REFERRED TO AS JAPONICA THE HIGHLY PRIZED JAPONICA IS ONE OF THE MOST DIFFICULT TO GROW BUT IT IS USED AROUND THE GLOBE FROM TOKYO SUSHI SHOPS TO NEW ORLEANS GUMBO RESTAURANTS JAPAN GROWS ABOUT 50 SPECIES OF JAPONICA RICE WITH NAMES LIKE LOVE AT FIRST SIGHT HEART OF THE MAIDEN AND LIGHT OF SNOW NATURALLY MANY PEOPLE HERE SAY JAPANESE JAPONICA IS DIFFERENT FROM ITS FOREIGN VERSIONS GOOD RICE WHEN PLUCKED GENTLY WITH A PAIR OF CHOPSTICKS SHOULD BE STICKY ENOUGH TO STAY IN A LUMP BUT SHOULD NOT CLOT SAYS KAZUO AMANO VICE PRESIDENT OF THE JAPAN RICE MILLERS ASSOCIATION CALIFORNIA'S CALROSE RICE WHICH IS A KIND OF JAPONICA IS QUITE STICKY BUT HAS AN UNFORTUNATE PUNGENT SMELL HE SAYS THERE IS A WAY TECHNICALLY TO FACTOR OUT CULTURAL DIFFERENCES AND ARRIVE AT A COMPLETELY OBJECTIVE COMPARISON OF JAPANESE AND FOREIGN RICE USE THE NEUROFUZZY TASTE DETECTOR MANUFACTURED BY SATAKE CORP A COMPANY BASED IN HIROSHIMA THIS DEVICE WHICH LOOKS LIKE A MICROWAVE OVEN PIERCES THE GRAIN WITH INFRARED RAYS TO MEASURE THE PRECISE AMOUNT OF A STARCH CALLED AMYLOSE IN JUST 30 SECONDS THE TASTE DETECTOR PRODUCES A NUMERICAL RATING OF THE GRAIN'S GOODNESS BUT THERE ARE TWO PROBLEMS WITH THIS IDEA THE MACHINE WHICH IS USED BY RICE MILLERS WHOLESALERS AND A FEW RESTAURANTS COSTS 8 MILLION YEN ABOUT 71000 ALSO FOR THE AVERAGE CITIZEN FOREIGN RICE IS STILL INCREDIBLY DIFFICULT TO COME BY IMPORTING SMALL QUANTITIES IS LAWFUL FOR PERSONAL USE BUT IT CAN BE ILLEGAL TO SERVE IT TO OTHERS AND ANYONE ATTEMPTING A RICETASTING IMMEDIATELY RAISES EYEBROWS THE RICE MUST ABSOLUTELY BE FOR PERSONAL CONSUMPTION ONLY SAYS A SUSPICIOUS CUSTOMS OFFICER IN THE TOKYO CENTRAL POST OFFICE DON'T BE SURPRISED IF A CUSTOMS OFFICER CALLS LATER TO QUESTION YOU STILL THERE ARE LOOPHOLES AND PEOPLE WHO LEAP THROUGH THEM THAT EXPLAINS THE PRESENCE OF 110 EAGER JAPANESE TASTERSSOME WHO HAVE FLOWN HUNDREDS OF MILESAT A RECENT RICE TASTING IN TOTTORI A GROUP OF AGRONOMISTS AT THE LOCAL UNIVERSITY IS HOSTING THE SYMPOSIUM OF INTERNATIONAL ACADEMIC RESEARCH ON THE POTENTIALS OF JAPONICA RICE EACH TIME THE AGRONOMISTS HAVE GONE OVERSEAS IN THE PAST FEW YEARS THEY HAVE LUGGED BACK BAGFULS OF FOREIGN RICE AS SOUVENIRS AN EXCEPTION THAT IS ALLOWED UNDER JAPANESE LAW AROUND STARK WOODEN TABLES IN THE UNIVERSITY DINING ROOM GROUPS OF RICE WHOLESALERS RESTAURATEURS AND HOUSEWIVES EAGERLY WAIT AS TROLLEYS FULL OF STEAMING RICE COOKERS COME ROLLING IN ALL THEY ARE TOLD IS THAT ONE IS JAPANESE KOSHIHIKARI A PARTICULARLY STICKY BRAND THAT IS JAPAN'S MOST POPULAR THE OTHERS ARE CHINESE AND AMERICAN VERSIONS OF JAPONICA THE CHALLENGE IS TO GUESS WHICH RICE IS WHICH AND TO RATE EACH FOR FLAVOR FRAGRANCE APPEARANCE AND STICKINESS SILENCE FALLS UPON THE DINING ROOM AS THE TASTERS LOWER THEIR NOSES TO SNIFF LONG AND HARD AT EACH MOUND OF RICE WRINKLING HIS BROW IN CONCENTRATION KAZUHIKO IWATA POINTS TO WHAT HE BELIEVES TO BE A PARTICULARLY FRAGRANT AND GLOSSY MOUND OF RICE THAT'S GOT TO BE THE JAPANESE RICE SAYS THE 29YEAROLD AGRICULTURAL COOPERATIVE WORKER NODDING CONFIDENTLY WRONG IT'S HE JING RICE FROM NORTHERN CHINA YOSHINOBU AMAMORI A 43YEAROLD FOOD IMPORTER SAYS HE PREFERS THE RICE THAT DOESN'T SMELL OR TASTE LIKE MUCH HE SIGHS IN CONTENTMENT DISCOVERING THAT ONE'S THE JAPANESE BRAND CHRIS ISBELL A RICE FARMER WHO GROWS KOSHIHIKARIBRAND RICE IN ENGLAND ARKANSAS HOPES THE JAPANESE GOVERNMENT WILL PICK HIS RICE AS ONE OF THE SANCTIONED IMPORTS HE HAS SUBMITTED HIS RICE HERE IN TOTTORI AS ONE OF THE FIVE TO BE TESTED AFTER NERVOUSLY WATCHING THE CROWD SNIFF AND SWALLOW HE ATTEMPTS TO IDENTIFY HIS OWN RICE USING HIS PERSONAL METHOD DETECTING THE AMOUNT OF LINGERING SWEETNESS AFTER YOU'VE SWALLOWED THE RICE AFTER MUCH HESITATION HE GUESSES CORRECTLY WHEN THE RESULTS ARE ANNOUNCED THE JAPANESE RICE COMES IN FIRST PLACE FOLLOWED CLOSELY BY THE TWO CHINESE RICES MR ISBELL'S RICE COMES IN FOURTH PLACE AND CALROSE FROM CALIFORNIA IS THE LEAST POPULAR EVEN THOUGH MR YAMANE THE FARMER LIKED IT THE RESULTS DON'T DISCOURAGE MR ISBELL IMMEDIATELY AFTER THE SYMPOSIUM SEVERAL PEOPLE GATHER AROUND THE ARKANSAS FARMER TELLING HIM HIS RICE WASN'T SO BAD IN FACT SOME SAY THEY NEARLY MISTOOK IT FOR JAPANESE RICE WE FRIENDS SAYS TOSHIO KISHI A 55YEAROLD RICE WHOLESALER WHO SHAKES MR ISBELL'S HAND AND ASKS FOR HIS ADDRESS I'D LIKE TO BUY YOUR RICE 9401100066 940110 MARKETING & MEDIA ADVERTISING SLIMFAST ADS USE BROOKE SHIELDS TO APPEAL TO THE LOWFAT DIETER BY KEVIN GOLDMAN IT APPEARS THAT SOMETHING HAS COME BETWEEN BROOKE SHIELDS AND HER CALVINS AFTER ALL AN EXTRA 12 POUNDS THE MODEL AND SOMETIME ACTRESS IS THE LATEST CELEBRITY TO TAKE IT OFF FOR ULTRA SLIMFAST MS SHIELDS IS APPEARING IN TWO NEW ULTRA SLIMFAST COMMERCIALS SCHEDULED TO BEGIN AIRING THIS WEEK THE USE OF MS SHIELDS IS SOMETHING OF A DEPARTURE FOR THE DIET BRAND WHICH USUALLY USES OLDER CHUBBIER STARS SUCH AS TOMMY LASORDA MANAGER OF THE LOS ANGELES DODGERS EDWARD I KOCH FORMER MAYOR OF NEW YORK AND WILLARD SCOTT THE JOCULAR WEATHERMAN ON NBC'S TODAY SHOW ONE WOULD HARDLY THINK OF MS SHIELDS AS SOMEONE WHO NEEDS TO DIET AND THAT'S PRECISELY THE POINT BY USING MS SHIELDS WHO SHED A DOZEN POUNDS IN EIGHT WEEKS SLIMFAST IS HOPING TO TAP INTO A NEW SEGMENT FOR THE DIET INDUSTRY THOSE WHO DON'T NEED TO DROP 30 TO 50 POUNDS WE BELIEVE THERE ARE MILLIONS OF AMERICANS WHO WOULD LOVE TO WEIGH 10 POUNDS LESS THAN THEY DO NOW SAYS DAN ABRAHAM CHAIRMAN OF SLIMFAST FOOD THE MARKETER OF ULTRA SLIMFAST BROOKE IS THE PERFECT PERSON TO DELIVER THAT STORY SHE EVEN WORKS OUT PHYSICALLY BUT THAT'S NOT ENOUGH TO KEEP UNWANTED WEIGHT OFF IN ONE SPOT DIRECTED BY FRENCH FILM DIRECTOR ROGER VADIM MS SHIELDS DANCES TO PULSATING HIPHOP AND JAZZ MUSIC IN ANOTHER ONE SHE SAYS I DON'T HAVE TO GET ON A SCALE TO KNOW WHEN I'VE GAINED WEIGHT MY CLOTHES LET ME KNOW RIGHT AWAY OTHER CELEBRITIES NOT USUALLY THOUGHT OF AS OBESE HAVE BEEN USED BY SLIMFAST BEFORE BUT USUALLY THEIR WEIGHT GAIN WASN'T A RESULT OF OVEREATING INSTEAD THE COMMERCIALS INCLUDED DIETERS SUCH AS KATHIE LEE GIFFORD WHO GAINED WEIGHT BECAUSE OF A PREGNANCY THE ADVANTAGE OF USING MS SHIELDS MARKETING EXPERTS SAY IS THAT MANY CONSUMERS CAN IDENTIFY WITH HER PREDICAMENT SHE GAINED A MODEST AMOUNT OF WEIGHT BY NIBBLING TOO MUCH MR ABRAHAM SAYS THAT THIS YEAR CONSUMERS WILL SEE A CHANGE IN OUR ADVERTISING WE'RE GOING TO PRESENT ULTRA SLIMFAST NOT ONLY AS A DIET PRODUCT BUT AS A PRODUCT THAT CAN BE CONSUMED AS A HEALTHY BREAKFAST LUNCH OR SNACK FOR THOSE NOT GREATLY OVERWEIGHT WHILE THE ENTIRE DIET AID CATEGORY IS EXPERIENCING GROWTH ULTRA SLIMFAST IS IN UNPRECEDENTED COMPETITION WITH HEFTY RIVALS SUCH AS THE NEW SWEET SUCCESS LINE FROM NESTLE THE CORE ULTRA SLIMFAST BRAND HAD SALES OF 2187 MILLION IN THE 44 WEEKS ENDED NOV 7 1993 UP 10 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES' INFOSCAN SERVICE THE FIGURES REFLECT SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS HOWEVER ULTRA SLIMFAST'S SALES DIDN'T KEEP PACE WITH THE CATEGORY WHICH GREW 18 TO 5458 MILLION MUCH OF THE GROWTH APPEARS TO HAVE COME FROM SWEET SUCCESS WHICH PITCHES ITSELF AS A GUILTFREE CHOCOLATE INDULGENCE IT BOASTED SALES OF 455 MILLION TO CAPTURE 8 OF THE MARKET COMPETITION IS HEATING UP IN THE SEGMENT OF THE DIET BUSINESS THAT TARGETS PEOPLE WHO WANT JUST A FINETUNING AS OPPOSED TO A TOTAL OVERHAUL LAST WEEK WEIGHT WATCHERS A UNIT OF HJ HEINZ BEGAN RUNNING ADS WITH FORMER NETWORK ANCHORWOMAN KATHLEEN SULLIVAN HAWKING A NEW RAPID WEIGHTLOSS PROGRAM IN ONE COMMERCIAL MS SULLIVAN STEPS ON A SCALE AND GIGGLES WITH DELIGHT WHEN SHE DISCOVERS SHE LOST 8 1/2 POUNDS IN ABOUT TWO WEEKS MS SHIELDS CAME TO MIND FOR SLIMFAST AND GREY ADVERTISING LAST YEAR SHORTLY AFTER THEY USED MODEL SHARI BELAFONTE IT MADE US REALIZE THAT THERE ARE PEOPLE WHO DON'T NEED DRAMATIC WEIGHT LOSS TO BE INTERESTED IN THE PRODUCT SAYS JERRY SAVIOLA VICE PRESIDENT OF CELEBRITY TALENT NEGOTIATIONS AT GREY MARKETING EXPERTS FEEL THE CASTING OF MS SHIELDS IS AN INSPIRED CHOICE EVEN THOUGH HER MOVIE CAREER HAS BEEN AT BEST SLUGGISH SHE RECENTLY FILMED A MOVIE BASED IN AFRICA RUNNING WILD THINK OF USING BROOKE SHIELDS IN TERMS OF MARKET SEGMENTATION SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES A MARKETING AND ADVERTISING CONSULTING FIRM IN GUILFORD CONN THE FIRST TIER OF PEOPLE YOU HAVE TO SELL THE SLIMFAST PROGRAM TO IS OBVIOUS THAT'S THE EASY PART THEN AFTER THAT GROUP IS SATURATED YOU LOOK FOR OTHER HIGHPOTENTIAL TARGETS THAT SEGMENT MAY BE SMALLER IN NUMBER PERHAPS BUT THERE HASN'T BEEN THAT PROMOTION TO THIS NEW GROUP AND MR PERMUT ADDS MS SHIELDS REPRESENTS SOMEONE WHO IS YOUTHFUL ATTRACTIVE AND IN EXCELLENT HEALTH MR ABRAHAM SAYS MORE CHANGES ARE IN STORE FOR ULTRA SLIMFAST INCLUDING NEW FRUITCOMBINATION READYTODRINK SHAKES THAT WILL BE INTRODUCED NATIONALLY IN MARCH NEW ADVERTISING FROM GREY WILL ACCOMPANY THE PRODUCTS WHICH INCLUDE ORANGE PINEAPPLE SHAKES BUT MR ABRAHAM DECLINES TO BE SPECIFIC AND ADDITIONAL STARS PERHAPS NOT UNLIKE MS SHIELDS WILL BE SEEN IN SUBSEQUENT ADS BUT HE SAYS WE CAN'T TIP OFF ANY COMPETITORS A NEW COMMERCIAL FOR ROY ROGERS TAKES A POKE AT RIVAL BURGER KING CORP AND ITS BK TEEVEE CAMPAIGN THE LAST ONE THAT AD AGENCY D'ARCY MASIUS BENTON & BOWLES CREATED FOR BURGER KING BEFORE THE BURGER CHAIN PUT ITS 100 MILLIONPLUS ACCOUNT UP FOR REVIEW IN THE SPOT FROM BETHESDA MD AGENCY EARLE PALMER BROWN A YOUNG MAN MEETS A MODERNDAY ST PETER AT THE GATES OF HEAVEN AND ASKS WHAT THERE IS TO EAT GREAT FOOD FROM ROY'S THE ST PETER CHARACTER TELLS HIM THIS IS HEAVEN THE NEW ARRIVAL FINDS THAT HARD TO BELIEVE BUT YOU DON'T ACTUALLY COOK ANYTHING HE SAYS THE ST PETER CHARACTER SMILES AND TURNS TO A NEARBY CHIMNEY YOU MUST BE THINKING OF THE OTHER PLACE HE SAYS FLAMES AND SMOKE PUFF OUT AND A VOICE YELPS I HATE THIS PLACE THE ILLFATED DMB&B CAMPAIGN FEATURED A LOUDMOUTHED NARRATOR EXCLAIMING I LOVE THIS PLACE A BURGER KING SPOKESWOMAN AND A DMB&B SPOKESMAN DECLINED TO COMMENT BURGER KING A UNIT OF GRAND METROPOLITAN FIRED DMB&B FROM THE CREATIVE PART OF THE ACCOUNT IN THE US IN OCTOBER DMB&B IS PITCHING TO RETAIN THE MEDIA PORTION OF THE ACCOUNT AND OTHER DUTIES THE REVIEW IS EXPECTED TO END IN MARCH OFFICIALS OF ROY ROGERS A UNIT OF HARDEE'S FOOD SYSTEMS COULDN'T BE REACHED TO COMMENT SUBARU SUBARU OF AMERICA A UNIT OF FUJI HEAVY INDUSTRIES LTD SIGNED A CONTRACT WITH DALLAS AGENCY TEMERLIN MCCLAIN MAKING IT THE OFFICIAL SUBARU AD AGENCY FOLLOWING A THREEMONTH TRIAL PERIOD BETWEEN THE TWO PARTIES TEMERLIN'S APPOINTMENT TO THE 70 MILLION ACCOUNT WAS EXPECTED A NEW CAMPAIGN IS EXPECTED IN THE SPRING TEMERLIN IS A UNIT OF BOZELL JACOBS KENYON & ECKHARDT FOX NEWS CORP'S FOX NETWORK SAID ITS AFFILIATES WILL TEMPORARILY AIR LOCAL PROGRAMMING DURING THE LATENIGHT PERIOD FROM 11 PM TO MIDNIGHT EASTERN TIME EFFECTIVE JAN 31 THE TIME PERIOD WAS OCCUPIED FOR SIX WEEKS LAST FALL BY CHEVY CHASE'S CRITICALLY REVILED TALK SHOW AND MORE RECENTLY BY REPEATS OF IN LIVING COLOR AND CODE 3 THE STATIONS MAY RESUME NETWORK BROADCASTS WHEN FOX LAUNCHES A NEW LATENIGHT SHOW Y&R YOUNG & RUBICAM SAID IT HAS REDUCED ITS CONTROLLING STAKES IN TWO MIDWEST AGENCIES SIVE/YOUNG & RUBICAM OF CINCINNATI AND CRESWELL MUNSELL FULTZ & ZIRBEL OF CEDAR RAPIDS IOWA YOUNG & RUBICAM SAID IT RETAINS MINORITY INTERESTS IN THE AGENCIES WHICH ARE NOW CONTROLLED BY MANAGEMENT AT THE TWO SHOPS 9401100065 940110 AMERICAN AIR TO LAY OFF 775 WORKERS AT AIRPORTS FORT WORTH TEXAS AMERICAN AIRLINES SAID IT SENT LAYOFF NOTICES TO 775 EMPLOYEES LAST WEEK PART OF ITS PLAN TO SHRINK THE AMR CORP UNIT BY 5000 JOBS DURING 1994 AND 1995 THE EMPLOYEES AFFECTED ARE THOSE WHO WORK IN AIRPORT OPERATIONS INCLUDING TICKET AND GATE AGENTS BAGGAGE HANDLERS AND FLEET SERVICE THE LAYOFFS TAKE EFFECT FEB 4 WHILE THEIR POSITIONS WILL BE ELIMINATED NOT ALL OF THE WORKERS WILL LOSE THEIR JOBS IN SOME CASES EMPLOYEES CAN WORK PART TIME AND DEPENDING ON UNION RULES SOME HIGHSENIORITY WORKERS CAN BUMP THOSE WITH LESS SENIORITY AS PART OF THE MOVE AMERICAN SAID IT PLANS TO ANNOUNCE MANAGEMENT LAYOFFS AT MONTH'S END PILOT FURLOUGHS WHICH STAND AT 275 NOW WILL BE 400 TO 450 BY SPRING THE COMPANY SAID AMERICAN WHICH HAS LOST HUNDREDS OF MILLIONS OF DOLLARS SINCE 1990 SAID LAST YEAR THAT IT WOULD SHRINK MONEYLOSING AIRLINE OPERATIONS AND BEEF UP ITS NONAIRLINE TECHNOLOGY UNITS 9401100064 940110 MANAGER'S JOURNAL THE HOTTEST THING IN SALES SINCE THE ELECTRIC FORK BY JACK FALVEY JOHN FELLOWS KNOWN AS MISTER RADIO IN THE STATE OF MAINE IS WITHOUT DOUBT ONE OF THE BEST RADIOTIME SALESMEN ANYWHERE I WORKED A DAY WITH HIM WHEN HE LED THE SALES TEAM AT WOKQ IN PORTSMOUTH NH WHICH IS RATED NO 1 IN ITS MARKET AREA ON ONE CALL AT A LAWNANDGARDEN SUPPLY STORE HIS PRESENTATION TO THE OWNER WAS INTERRUPTED BY A CUSTOMER HE WAITED THREE MINUTES CALLED OUT SEE YA OVER HIS SHOULDER AND LEFT EXACTLY 30 MINUTES LATER AFTER A COLD CALL A MILE AWAY RESULTED IN A CONFIRMED FUTURE APPOINTMENT AT AN AUTOMOBILE DEALER WE WERE BACK AT THE LAWNANDGARDEN STORE TO CLOSE A MAJOR ADVERTISING SCHEDULE DESPITE THIS REMARKABLE DISPLAY OF SALES ACUMEN AT THE END OF THE DAY MR FELLOWS APOLOGIZED IN EMBARRASSMENT WHEN WE HAD SCHEDULED THE FIELD SALES DAY HE TOLD ME HE DID EVERYTHING ON HIS LAPTOP COMPUTER AND EVEN THOUGH I DIDN'T THINK MUCH OF THE TECHNOLOGY HE THOUGHT THE WORLD OF IT HE HAD PLANNED TO SHOW ME HOW HIS COMPUTER WORKED ON OUR TRIP BUT ITS BATTERIES HAD DIED OVERNIGHT I COULDN'T HELP RECALLING THE ORBITER 4000 IT WAS INTRODUCED AS THE LATEST IN SHAVING TECHNOLOGY BY GILLETTE IN THE EARLY 1970S ELECTRICAL APPLIANCES WERE TAKING ADVANTAGE OF NEW ADVANCES IN BATTERIES AND THE ELECTRIC CARVING KNIFE LED ALL SALES GILLETTE'S ORBITER 4000 WAS A BATTERYOPERATED TECHMATIC BAND RAZOR THAT SORT OF VIBRATED AFTER A HOT PRODUCT LAUNCH IT WAS LATER QUIETLY RECALLED WHEN IT WAS DISCOVERED THAT IT SHAVED JUST AS WELL WHEN THE BATTERIES RAN DOWN IT BECAME KNOWN IN THE TRADE AS THE ELECTRIC FORK WOULD THAT THE LATEST IN SALESFORCE AUTOMATION WERE AS BENIGN YEARS AGO MOST ENLIGHTENED SALES MANAGERS DID AWAY WITH CALL REPORTS AS A WASTE OF TIME WHAT WAS ACCOMPLISHED WAS CRITICAL NOT A RECORD OF HOW IT WAS DONE SALES MANAGERS WERE REQUIRED TO TRAVEL WITH THEIR TOP PRODUCERS TO KEEP THEIR EXPERIENCED EYE ON THE MARKETPLACE AND TO IMPROVE THE TECHNIQUE OF THEIR FIELD SALES PROFESSIONALS WITH THOUSANDS OF SOFTWARE PROGRAMS NOW AVAILABLE SALES FORCE AFTER SALES FORCE IS BEING EQUIPPED IN THE NAME OF ELECTRONIC PROGRESS WITH AUTOMATION SYSTEMS ALL OF WHICH INCLUDE DETAILED ELECTRONIC CALL REPORTING FEATURES THESE PROGRAMS PUMP OUT SALES MANAGEMENT REPORTS INDICATING IN MULTICOLORED BAR CHARTS AND PIE GRAPHS OR WITH LONG COLUMNS OF FIGURES EXACTLY WHAT IS HAPPENING IN THE FIELD NO NEED TO BE THERE IT'S ALL IN THE SYSTEM A FIELD DISTRICT MANAGER FOR DATA GENERAL CORP TOLD ME HE HAD NO NEED TO GO INTO THE FIELD HE MONITORED HIS PEOPLE ON THE SYSTEM HIS JOB AS HE SAW IT WAS TO BE SURE ORDERS WERE CORRECTLY PROCESSED TRADITIONALLY COMPUTER SALESPEOPLE MAKE FEWER SALES CALLS THAN IN ANY OTHER INDUSTRY IS IT ANY WONDER THEY LOSE CONTROL OF THEIR MARKETS AND CUSTOMERS WITH GREATER SPEED THAN ANY OTHER INDUSTRY THERE IS NOT A SINGLE FUNCTION ON ANY SALES AUTOMATION SYSTEM THAT CANNOT BE DONE MANUALLY WITH EQUAL EFFICIENCY WITH THE EXCEPTION OF SUMMARY ACTIVITY REPORTS GEORGE GILDER WAS ONCE QUOTED AS SAYING THAT ONE PAIR OF HUMAN EYES PROCESSED MORE VISUAL DATA IN ONE DAY THAN ALL THE WORLD'S COMPUTERS COMBINED WHAT A SHAME IF THOSE EYES ARE GLUED TO THE SCREEN OF A SALESFORCE AUTOMATION SYSTEM SALESFORCE AUTOMATION FUNCTIONS PRIMARILY TO MARKET THE HARDWARE AND SOFTWARE IT WAS DESIGNED TO REQUIRE TOO OFTEN IT IS USED TO JUSTIFY THE DERELICTION OF DUTY OF DESKHUGGING SALES MANAGERS WHO DON'T WANT TO DO THE HARD JOB OF GETTING ON PLANES TO FIND OUT WHAT IS REALLY GOING ON WARNER LAMBERT FOR EXAMPLE ACTUALLY REQUIRES ITS FIELD MERCHANDISERS TO RECORD IN ITS DATABASE THE RESULTS OF EVERY CALL ON EVERY DRUGSTORE AND SUPERMARKET MADE EVERY DAY TO REPLACE DAMAGED GOODS AND DRESS DISPLAYS AND TO TALK TO STORE PERSONNEL ABOUT GOOD MERCHANDISING PRACTICES THIS IS BECOMING STANDARD COMPUTER PRACTICE IN THE INDUSTRY WHY TURNING FIELD PEOPLE INTO DATAENTRY CLERKS ONLY SERVES THE PURPOSE OF ALLOWING MANAGERS TO POLICE WHERE THEIR PEOPLE SAY THEY HAVE BEEN OFFICE MACHINES BELONG IN AN OFFICE NOT ON THE FRONT SEAT OR LAP OF SALES PROFESSIONALS DO THE ADMINISTRATION FOR YOUR SALESPEOPLE DON'T OFFLOAD IT ON THEM DURING THE GROWTH AGE OF ELECTRONICS SPANNING THE PAST 15 YEARS ACROSS ALL INDUSTRIES IN ALL MARKETS IMAGINABLE I HAVE NEVER SEEN EVEN ONE TOP SALES PROFESSIONAL DRAG ONE OF THESE ELECTRONIC MARVELS IN ON A SALES CALL THEY ALL UNDERSTAND INSTINCTIVELY THAT TECHNOLOGY DOES NOT BELONG IN THE EQUATION THEY KNOW WHY PEOPLE BUY THEY KEEP TRACK OF 400 OR 500 NAMES IN THEIR HEADS WITHOUT DIFFICULTY AND NO DATABASE EXISTS THAT CAN OR SHOULD CATALOG WHAT THEY KNOW ABOUT HOW AND WHY THOSE PEOPLE BUY ARE THERE EXCEPTIONS TO THIS RULE YES COMPUTERS DEFINITELY BELONG IN SALES IN A BIG WAY FOR EXAMPLE RICK KELLY OF BRISTOL MYERS DOES MILLIONS IN SALES WITH JUST THREE CUSTOMERS HE SPENDS THREE DAYS A MONTH IN CLEARWATER FLA HARRISBURG PA AND PROVIDENCE RI HE KNOWS ALMOST AS MUCH ABOUT THE STORETOSTORE OPERATIONS OF ECKERD DRUG RITEAID AND CVS AS THEY DO THEMSELVES HE KNOWS BY BEING ABLE TO COMPUTERMODEL DISTRIBUTION AND PROMOTIONAL PLANS WITH HIS BUYERS THEY SHARE DATA TO INCREASE RESULTS RICK IS A NATIONAL ACCOUNTS MANAGER AND USES HIS COMPUTER DIFFERENTLY FROM THE WAY ANY OF THE SALESFORCE AUTOMATION SYSTEMS ON THE MARKET NOW OPERATE KNOWING WHAT A WEEKEND COUPON DROP IN A SUNDAY SUPPLEMENT WILL DO IN AREA OUTLETS AT WHAT PRICE POINT AND IN WHAT VOLUME BY PACKAGE SIZE IS WHAT HE AND HIS COMPUTER WORK ON HE GETS ELECTRONIC MAIL AND HAS INDEPTH MARKET INFORMATION BUT HE DOESN'T HAVE TO FOLLOW UP LEADS OR UPDATE THE NAMES OF BUYERS WITH ONLY THREE CUSTOMERS HIS RESULTS ARE TABULATED QUARTERLY NO NEED TO CHECK NUMBERS OF CALLS PER DAY TAKE A LONG HARD LOOK AT HOW YOU EMPLOY COMPUTERS IN FIELD SALES DO YOUR BEST SALESPEOPLE WORK JUST AS WELL WITH THE BATTERIES DISCONNECTED THAT OUGHT TO TELL YOU SOMETHING ABOUT SALESFORCE AUTOMATION AND ITS PLACE IN THE HALL OF SHAME WITH THE OVERPROMISED AND UNDERDELIVERED COMPUTERIZED PREDECESSORS THAT HAVE FALLEN BY THE WAYSIDE ALONG THE ELECTRONIC HIGHWAY DO YOU REQUIRE YOUR SALES PROFESSIONALS TO USE AN ELECTRONIC FORK 9401100062 940110 TRADE QUOTAS BUILD NEW CHINESE WALL BY JAMES BOVARD TRADE NEGOTIATIONS BETWEEN THE US AND CHINA HAVE REACHED A BITTER IMPASSE OVER THE ISSUE OF ALLEGED TRANSSHIPMENTS OF CHINESE CLOTHING US TRADE REPRESENTATIVE MICKEY KANTOR ANNOUNCED ON THURSDAY THAT THE US WILL SLASH CHINA'S PERMITTED TEXTILE EXPORTS TO THE US BY 25 TO 35 MORE THAN 1 BILLION UNLESS CHINA SUBMITS TO US DEMANDS FOR INCREASED CONTROLS ON ITS TEXTILE PRODUCTION UNFORTUNATELY THIS APPEARS TO BE A CONFLICT LARGELY SPURRED BY THE FANATICISM OF PROTECTIONIST US BUREAUCRATS NOT THE MISDEEDS OF THE GOVERNMENT OF CHINA UNDER THE US TEXTILE IMPORT QUOTA SYSTEM 41 NATIONS ARE ASSIGNED QUOTAS THAT SPECIFY HOW MUCH OF EACH TYPE OF TEXTILE AND APPAREL PRODUCT A GIVEN NATION MAY SELL TO AMERICAN CONSUMERS SOME NATIONS HAVE ALLEGEDLY EVADED THE RESTRAINTS BY TRANSSHIPPING CLOTHING TO A THIRD COUNTRY WHERE LABELS ARE ATTACHED STATING MADE IN BEFORE IT IS EXPORTED TO THE US THOUGH SUCH TRANSSHIPMENTS CAN BENEFIT AMERICAN CONSUMERS IN THE FORM OF GREATER SELECTION AND LOWER PRICES THE US TEXTILE INDUSTRY IS DEMANDING THAT THE GOVERNMENT TAKE ANY AND ALL STEPS TO BLOCK THE IMPORTS THE US CLAIMS THAT CHINA IS TRANSSHIPPING 2 BILLION OF TEXTILE PRODUCTS TO THE US EACH YEAR THE 2 BILLION FIGURE REPEATED AD INFINITUM BY US TRADE OFFICIALS HAS REACHED THE STATUS OF DIVINE REVELATION IN AMERICAN TRADE POLICY ALTHOUGH THE CHINESE GOVERNMENT AND US IMPORTERS AGREE THAT SOME TRANSSHIPPING IS GOING ON THE US GOVERNMENT HAS NO EVIDENCE TO SUPPORT ITS CLAIM OF MULTIBILLIONDOLLAR TRANSSHIPMENTS THE HEART OF THE USCHINA CONFLICT TWO BILLION DOLLARS OF APPAREL IMPORTS IS THE EQUIVALENT OF A FLOTILLA OF CARGO SHIPS YET THE US GOVERNMENT HAS OFFERED NO EVIDENCE OF THE FLOTILLA'S EXISTENCE AT A PRESS CONFERENCE IN WASHINGTON ON THURSDAY MR KANTOR OFFERED A HANDFUL OF ALLEGED EXAMPLES OF TRANSSHIPMENTS ONE EXAMPLE WAS THE CASE OF 625 MILLION KILOGRAMS OF SHOP TOWELS SMALL COTTON TOWELS USED TO WIPE GREASE AND OIL OFF MACHINERY THAT WERE EITHER COMPLETED OR SUBSTANTIALLY COMPLETED IN CHINA SHIPPED TO HONDURAS AND LATER ROUTED TO THE US IN REALITY FOR MANY IF NOT MOST OF THE SHIPMENTS CHINA EXPORTED FABRIC TO HONDURAS WHICH WAS THEN CUT INTO SHOP TOWELS AND EXPORTED TO THE US UNDER THE LAW OF SOME COUNTRIES SUCH A TRANSFORMATION WOULD BE CONSIDERED TO CHANGE THE COUNTRY OF ORIGIN BUT NOT UNDER US CUSTOMS LAW ACCORDING TO TEXTILE TRADE EXPERT CLINT STACK THE 2 BILLION ESTIMATE OF ANNUAL ILLEGAL TRANSSHIPMENTS HAS BEEN DEDUCED IN PART FROM A CONTINUING CUSTOMS SERVICE INVESTIGATION BEGUN IN 1991 AND KNOWN AS OPERATION QTIP IN THAT CASE CUSTOMS BROUGHT IN TWO BUSLOADS OF AGENTS TO RAID IMPORTERS' OFFICES IN THE EMPIRE STATE BUILDING IN 1991 HUNDREDS OF THOUSANDS OF DOCUMENTS WERE SEIZED FILE CLERKS WERE HELD AT GUNPOINT AND MANY COMPANIES' OPERATIONS WERE SEVERELY DISRUPTED YET AFTER YEARS OF INVESTIGATIONS THE CUSTOMS SERVICE HAS SECURED GUILTY PLEAS REGARDING THE IMPORT OF ONLY 27 MILLION NOWHERE NEAR THE 2 BILLION A YEAR FIGURE CLAIMED BY THE CUSTOMS SERVICE CUSTOMS DOESN'T SEEM MUCH INTERESTED IN RESOLVING THE CURRENT DISPUTE WITH CHINA BY ANY BUT THE MOST HEAVYHANDED MEANS LAURA JONES DIRECTOR OF THE US ASSOCIATION OF IMPORTERS OF TEXTILE AND APPAREL OBSERVES WE HAVE REPEATEDLY ASKED THE CUSTOMS SERVICE TO GIVE US THE NAMES OF FOREIGN FACTORIES THAT ARE SUSPECTED OF TRANSSHIPPING SO THAT WE CAN ADVISE OUR MEMBERS TO STOP DEALING WITH THEM BUT CUSTOMS WILL TELL US NOTHING IN RECENT MONTHS CHINA HAS CRACKED DOWN ON COMPANIES EVADING US TEXTILE IMPORT REGULATIONS YET THE US GOVERNMENT DEMANDS THAT CHINA DO FAR MORE AND ALLOW US GOVERNMENT INSPECTORS PRACTICALLY FREE REIN THROUGHOUT THE COUNTRY THE US GOVERNMENT IS DEMANDING THAT FOREIGN NATIONS PERMIT US CUSTOMS SERVICE INSPECTION SQUADS TO DESCEND UNANNOUNCED ON CHINESE CLOTHING FACTORIES NO US AGENCY HAS THE RIGHT TO CONDUCT SURPRISE VISITS ON AMERICAN FACTORIES TO COUNT THEIR UNDERWEAR INVENTORY YET THIS IS WHAT THE US GOVERNMENT WANTS TO DO IN CHINA AND OTHER COUNTRIES THE CUSTOMS SERVICE HAS ESTABLISHED JUMP TEAMS TO JUMP ON FOREIGN TEXTILE FACTORIES TO DETERMINE WHETHER THEY ACTUALLY POSSESS THE PRODUCTION CAPACITY TO EXPORT THE AMOUNT THEIR NATIONS ARE SHIPPING TO THE US THESE TEAMS HAVE VISITED 34 NATIONS TO SEARCH FOR VIOLATORS OF US TEXTILE IMPORT REGULATIONS THE JUMP TEAMS HAVE BEEN TRAINED IN PART BY THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE TEN NATIONS INCLUDING CHINA HAVE REFUSED TO SIGN AGREEMENTS WITH THE US CLAIMING THAT PERMITTING US JUMP TEAMS TO INTRUDE ON THEIR COUNTRY WOULD BE A VIOLATION OF NATIONAL SOVEREIGNTY AN INDICATION OF THE BEHINDTHESCENES WRANGLING BETWEEN THE US AND CHINA CAN BE GARNERED FROM CONFIDENTIAL DOCUMENTS ON SIMILAR NEGOTIATIONS BETWEEN THE US AND COSTA RICA LAST MONTH US TEXTILE NEGOTIATORS INSISTED THAT COSTA RICA ACCEPT THE US GOVERNMENT'S RIGHT TO LAUNCH SURPRISE INSPECTIONS ON COSTA RICAN FACTORIES FOR VIOLATIONS OF US IMPORT QUOTAS OCCURRING FROM TRANSSHIPPING OR ANY OTHER MEANS WHEN COSTA RICA OBJECTED TO THE OR ANY OTHER MEANS PHRASE THE US GOVERNMENT RESPONDED IN A CONFIDENTIAL LETTER ON DEC 7 1993 IT SAID THAT THE ALLINCLUSIVE PHRASE WAS NECESSARY IN THE AGREEMENT BECAUSE IT WAS INTENDED TO COVER ALL FORMS OF CIRCUMVENTION EVEN THOSE NOT YET DEVISED BY INDUSTRIOUS EXPORTERS/IMPORTERS IN OTHER WORDS THE US IS SEEKING PRACTICALLY UNLIMITED POWER TO INVESTIGATE AND PUNISH FOREIGN COMPANIES FOR ABUSES THAT HAVE NOT YET EVEN BEEN INVENTED US GOVERNMENT OFFICIALS ARE WORKING OVERTIME TO TRY TO PORTRAY TEXTILE TRANSSHIPPING AS THE ECONOMIC EQUIVALENT OF PEARL HARBOR BUT IN REALITY THIS IS A CRIME CREATED LARGELY BY THE MINDLESS COMPLEXITY OF US TEXTILE IMPORT REGULATIONS WHICH DICTATE COUNTRY LIMITS ON THE IMPORT OF MORE THAN 3000 DIFFERENT APPAREL AND TEXTILE PRODUCTS IN MOST ALLEGED TRANSSHIPPING CASES THE IMPORTERS HAVE PAID IN FULL THE HIGH US TARIFFS ON CLOTHING SUCH AS THE 34 TARIFF ON POLYESTER SWEATERS OR THE 26 TARIFF ON WOMEN'S SWIMSUITS EVEN IF TRANSSHIPPING IS OCCURRING IT IS PROBABLY PROVIDING A WINDFALL TO THE US TREASURY THAT'S NOT ENOUGH FOR US TEXTILE OFFICIALS WHO ARE OBSESSED WITH SEEKING TO ACHIEVE TOTAL CONTROL OF CLOTHING SUPPLIES ENTERING THE US INDEED SOME IMPORTERS BELIEVE THAT THE US GOVERNMENT MAY BE TRYING TO USE THE TRANSSHIPMENT ISSUE TO SLASH THE AMOUNT OF TEXTILE IMPORTS OVERALL IN ORDER TO BUY SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT LAST FALL THE CLINTON ADMINISTRATION PROMISED CONGRESS TO SPEND AT LEAST AN ADDITIONAL 15 MILLION TO HIRE ANOTHER 136 CUSTOMS INSPECTORS TO CRACK DOWN ON TRANSSHIPPING AND OTHER VIOLATIONS MR KANTOR WHEN ASKED ABOUT THE IMPACT ON AMERICAN CONSUMERS OF SLASHING CHINESE EXPORTS DENIED THAT IT WOULD HAVE ANY IMPACT STATING I THINK THE AMERICAN CONSUMER WILL BE FULLY ABLE TO BUY QUALITY PRODUCTS MADE IN THE US MADE BY US WORKERS THIS IS HARDLY THE CASE QUOTAS AND TARIFFS ADD UP TO AN EFFECTIVE SURTAX OF 50 ON TEXTILE IMPORTS A COST THAT IS PASSED ALONG TO AMERICAN CONSUMERS THE DRACONIAN CRACKDOWN ON FOREIGN NATIONS AND THE DEMAND THAT THEY WAIVE SOME OF THEIR NATIONAL SOVEREIGNTY IS SPARKED IN PART BECAUSE OF THE GRIEVOUS HARM THAT TEXTILE IMPORTS HAVE SUPPOSEDLY WREAKED ON THE US INDUSTRY BUT IN 1992 US TEXTILE MAKERS HAD RECORD PROFITS FIVE TIMES HIGHER THAN THE AVERAGE US MANUFACTURER'S EARNINGS ON SALES THAT YEAR ACCORDING TO THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE FRIDAY IN BEIJING THE GOVERNMENT VOWED RETALIATION AGAINST THE AMERICAN DECISION THE OFFICIAL XINHUA NEWS AGENCY QUOTED A TRADE MINISTRY SPOKESMAN AS SAYING THE US ACTION WILL SERIOUSLY AFFECT USCHINESE ECONOMIC AND TRADE RELATIONS THERE ARE SEVERAL LEGITIMATE REASONS TO IMPOSE SANCTIONS ON CHINA SUCH AS VIOLATIONS OF INTELLECTUAL PROPERTY RIGHTS BUT TEXTILE TRADE IS NOT ONE OF THEM PROTECTIONIST AMERICAN BUREAUCRATS MUST NOT BE ALLOWED TO SPARK A MAJOR TRADE WAR MR BOVARD WRITES OFTEN ON TRADE 9401100061 940110 REVIEW & OUTLOOK EDITORIAL BARKETT V BILL HAVING READ THE OPINION POLLS PRESIDENT CLINTON IS TALKING TOUGH ABOUT CRIME WE WISH HE'D ALSO READ THE OPINIONS OF ONE OF HIS OWN NOMINEES TO THE FEDERAL BENCH ROSEMARY BARKETT OF FLORIDA HE'D DISCOVER THE LANI GUINIER OF HIS ANTICRIME POLICY JUST LAST MONTH MR CLINTON TOLD REPORTERS HE'D OBSERVED A SEA CHANGE IN PUBLIC ATTITUDE ON CRIME AND THUS MIGHT FAVOR WIDER POLICE AUTHORITY TO STOP AND SEARCH PEOPLE SUSPECTED OF CARRYING ILLEGAL FIREARMS HE SAID HE WOULDN'T TAKE THAT OFF THE TABLE ACCORDING TO A REPORT IN THE LOS ANGELES TIMES HE WOULDN'T HAVE TO BECAUSE MS BARKETT WOULD TAKE IT OFF THE TABLE FOR HIM WE REACH THIS CONCLUSION HAVING READ HER DISSENT IN PEREZ V FLORIDA A CASE BEFORE THE FLORIDA SUPREME COURT LAST YEAR MIAMI POLICE SPOTTED PEREZ AND ANOTHER MAN PASSING SOMETHING BETWEEN THEM IN A NOTORIOUS DRUG NEIGHBORHOOD WHEN AN OFFICER APPROACHED THE PAIR THEY FLED AND WHILE RUNNING PEREZ PULLED SOMETHING FROM HIS WAIST AND DROPPED IT IN AN ALLEY POLICE FOUND A FIREARM AND CHARGED PEREZ A CONVICTED FELON WITH CARRYING A CONCEALED WEAPON THE TRIAL JUDGE SUPPRESSED THE GUN AS EVIDENCE AGAINST PEREZ AS AN ILLEGAL SEARCH AND SEIZURE UNDER THE FOURTH AMENDMENT BUT AFTER VARIOUS APPEALS A MAJORITY OF THE FLORIDA SUPREME COURT RULED THE GUN WAS ADMISSIBLE AS EVIDENCE BECAUSE PEREZ HAD ABANDONED IT PRIOR TO ANY SEARCH THE MAJORITY CITED A US SUPREME COURT PRECEDENT FROM 1991 CALIFORNIA V HODARI D IN WHICH A SUSPECT HAD THROWN AWAY COCAINE WHILE BEING PURSUED THE COURT RULED THAT HODARI'S COCAINE HADN'T BEEN ILLEGALLY SEIZED NONE OF THIS WAS GOOD ENOUGH FOR JUDGE BARKETT WHO DISSENTED IN THE PEREZ CASE HER JUDGMENT WOULD HAVE EXCLUDED THE GUN FROM BEING USED AS EVIDENCE THUS ALLOWING PEREZ TO GO FREE EVEN THOUGH HE WAS CLEARLY GUILTY MS BARKETT THEREBY ENDORSED A MORE EXTREME VERSION OF THE EXCLUSIONARY RULE THAN EVEN THE US SUPREME COURT HAS ENDORSED THIS IS THE LOOPY RULE THAT AS THE SAYING HAS IT ALLOWS THE CRIMINAL TO GO FREE EVEN WHEN IT'S THE CONSTABLE WHO BLUNDERS MS BARKETT'S DISSENT IS ALL THE MORE REMARKABLE GIVEN THAT IN 1982 FLORIDA PASSED AN AMENDMENT TO ITS STATE CONSTITUTION THAT MADE US SUPREME COURT INTERPRETATIONS OF THE FOURTH AMENDMENT BINDING ON THE FLORIDA SUPREME COURT YET MS BARKETT NOW BELIEVES THAT THIS AMENDMENT DOESN'T APPLY BECAUSE THE US SUPREME COURT HAS BECOME MORE STRICT IN ITS INTERPRETATIONS SINCE 1982 HOW CONVENIENT AND OF COURSE THE LOGIC OF HER DISSENT IN PEREZ WOULD PROHIBIT THE STOP AND FRISK AUTHORITY THAT PRESIDENT CLINTON SAYS POLICE OUGHT TO HAVE WE DON'T REPORT ALL OF THIS TO EMBARRASS MR CLINTON BUT TO SUGGEST THAT MS BARKETT'S BRAND OF LIBERAL JURISPRUDENCE IS MUCH TO BLAME FOR AMERICA'S CRIME PROBLEM THE US LEGAL SYSTEM HAS CONSTRUCTED ELABORATE PROTECTIONS FOR DEFENDANTS THAT MAKE IT ALL BUT IMPOSSIBLE FOR CRIMINALS TO SEE A CONNECTION BETWEEN CRIME AND PUNISHMENT THE REHNQUIST SUPREME COURT HAS PULLED BACK ON SOME OF THE WORST WARREN COURT PRECEDENTS BUT THE BARKETTS OF THE WORLD WOULD SHIFT IT BACK AGAIN REPUBLICANS WE SHOULD ADD CAN BE JUST AS AGILE AT ANTICRIME POSTURING FLORIDA REPUBLICAN SENATOR CONNIE MACK HAS ENDORSED MS BARKETT WHO IS POPULAR WITH GOP ELITES IN THAT STATE EVEN AS HE RAILS ABOUT SENDING CRIMINALS TO JAIL SO THE SENATE IS LIKELY TO CONFIRM MS BARKETT TO HER SEAT ON THE ELEVENTH CIRCUIT NO ONE LATER SHOULD CLAIM TO BE SURPRISED BY JUDGE BARKETT'S OPINIONS 9401100060 940110 ECONOMY CLINTON ADVISERS ADVOCATE PERRY FOR FED POST BROOKINGS ECONOMIST VIEWS INFLATION DIFFERENTLY THAN OUTGOING ANGELL BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC ADVISERS HAVE AGREED TO RECOMMEND THAT HE NAME BROOKINGS INSTITUTION ECONOMIST GEORGE PERRY TO THE FEDERAL RESERVE BOARD ADMINISTRATION OFFICIALS SAID MR CLINTON HAS YET TO INTERVIEW MR PERRY AIDES SAY THE PRESIDENT WON'T ACT ON THE RECOMMENDATION UNTIL AFTER HIS TRIP TO EUROPE AND AFTER MR PERRY HAS UNDERGONE THE USUAL BACKGROUND INVESTIGATION MR PERRY 59 YEARS OLD INITIALLY SAID HE WASN'T INTERESTED IN THE FED JOB BUT LATER CHANGED HIS MIND IF NOMINATED BY THE PRESIDENT AND CONFIRMED BY THE SENATE HE WOULD BRING VIEWS DIFFERENT FROM THOSE OF THE FED GOVERNOR HE WOULD SUCCEED WAYNE ANGELL THE BANKER AND ECONOMIST WHO WAS NAMED TO THE SEVENMEMBER BOARD BY PRESIDENT REAGAN MR ANGELL A HARDLINE ADVOCATE OF ELIMINATING INFLATION SEES THE PRICE OF GOLD AND OTHER COMMODITIES AS THE BEST GUIDE TO MAKING MONETARY POLICY MR PERRY IS IN THE MAINSTREAM OF MACROECONOMICS AND IS LIKELY TO ADVOCATE A BALANCED MONETARY POLICY THAT BOTH CONTAINS INFLATION AND MAINTAINS ECONOMIC GROWTH HE DOESN'T TALK ABOUT THE NEED TO REACH ZERO INFLATION AND HAS DISCOUNTED THE IMPORTANCE OF GOLD PRICES IN A COLUMN PUBLISHED IN THE LOS ANGELES TIMES IN OCTOBER MR PERRY WROTE THAT THE POLICY SURPRISE THAT WOULD MOST UPSET MARKETS TODAY WOULD BE A PREMATURE INCREASE IN INTEREST RATES THAT DISRUPTED THE RECOVERY LONG BEFORE WE HAD ACHIEVED A HEALTHY ECONOMY WITH GOOD JOB MARKETS FOR WORKERS AND RESTORED PROFITABILITY FOR FIRMS BACK IN JUNE HE WROTE THAT THE FED IS CONCERNED WITH INFLATION ALL THE TIME IT WOULD BE THE FIRST TO DETECT A GENUINE PROBLEM IF ONE SHOULD EMERGE ON THE OTHER HAND WE ARE FORTUNATE THAT OUR OWN FED DOESN'T HAVE THE TUNNEL VISION OF THE PRESENT POLICY MAKERS AT THE BUNDESBANK WHICH AT THE TIME WAS HOLDING GERMAN INTEREST RATES HIGH TO SQUASH AN INFLATION THREAT EVEN THOUGH IT WAS CONTRIBUTING TO A RECESSION ACROSS EUROPE IN THAT SAME ESSAY MR PERRY SAID THERE'S NO REASON TO BELIEVE THAT GOLD PRICES HAVE ANY NOTICEABLE EFFECT ON FINISHED GOODS' PRICES OR THAT THEY PREDICT INFLATION MORE BROADLY THE OTHER FINALISTS FOR THE FED POST WERE PRINCETON UNIVERSITY ECONOMIST PETER KENEN AND VAN DOORN OOMS CHIEF ECONOMIST FOR THE PRIVATE COMMITTEE FOR ECONOMIC DEVELOPMENT ALTHOUGH MR CLINTON'S ADVISERS CONSIDERED ALL THREE TO BE WELLQUALIFIED THEY WERE EAGER TO SELECT AN ECONOMIST WHOSE STATURE AND PERSONALITY WOULD EQUIP HIM TO INFLUENCE FED CHAIRMAN ALAN GREENSPAN AND OTHER FED OFFICIALS MR PERRY HAS BEEN AT THE BROOKINGS THINK TANK IN WASHINGTON SINCE 1969 AFTER EARNING A DOCTORATE IN ECONOMICS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY MR PERRY SERVED ON THE STAFF OF PRESIDENT KENNEDY'S COUNCIL OF ECONOMIC ADVISERS AND LATER TAUGHT AT THE UNIVERSITY OF MINNESOTA 9401100059 940110 LEISURE & ARTS BOOKSHELF MAKING THE TRANSITION TO POWER FEMINISM' BY KARLYN KEENE BOWMAN NAOMI WOLF SAYS SHE IS CAPABLE OF PUTTING EGGS IN THE STEREO CABINET AND OF FORGETTING HER OWN BIRTHDAY FIRE WITH FIRE THE NEW FEMALE POWER AND HOW IT WILL CHANGE THE 21ST CENTURY RANDOM HOUSE 400 PAGES 21 HER FRENETIC CRY FOR A NEW POWER FEMINISM IS NO MODEL OF ORGANIZATION EITHER IDEAS RICOCHET OFF THE PAGES FREQUENTLY COLLIDING WITH ONE ANOTHER WHERE WAS THIS WOMAN'S EDITOR MS WOLF'S THESIS IS THAT THE TIME HAS COME FOR WOMEN TO TAKE THE POWER THAT SHOULD BE THEIRS AS A MAJORITY OF THE POPULATION AND THE ELECTORATE ALTHOUGH WOMEN HAVE BEEN A MAJORITY OF VOTERS SINCE 1980 IT TOOK ANITA HILL'S TESTIMONY DURING CLARENCE THOMAS'S CONFIRMATION HEARINGS TO SHATTER THE ILLUSION OF MALE POWER THAT EVENT AND THE 1992 ELECTION GENDERQUAKE HAVE CHANGED THE LANDSCAPE PERMANENTLY ENABLING WOMEN TO WIELD POWER SHE ARGUES WHILE WONDERING WHAT'S HOLDING THEM BACK NOT JUST CONTINUING OPPRESSION BY MEN AND MEDIA DISTORTION AND NEGLECT OF WOMEN'S CONCERNS SHE THINKS BUT ALSO WOMEN THEMSELVES FEMINISM HAS BECOME RIGIDLY IDEOLOGICAL AND REFLEXIVELY ANTICAPITALIST WOMEN ARE AMBIVALENT ABOUT POWER TOO HAVING REPRESSED THE WILL TO HAVE IT AND USE IT SINCE CHILDHOOD THE IDEAS OF THE DIFFERENCE FEMINISTS DEBORAH TANNEN CAROL GILLIGAN ET AL HAVE ALSO HELD WOMEN BACK BY FOCUSING ON FEMALE QUALITIES SUCH AS NURTURING THAT ARE PERCEIVED AS BEING IN CONFLICT WITH HOLDING POWER WOMEN MUST MAKE A PSYCHOLOGICAL PASSAGE TO POWER FEMINISM MS WOLF CONTINUES BY SHEDDING IDEOLOGICALPURITY TESTS RECOGNIZING THAT WOMEN ARE CAPABLE OF BAD BEHAVIOR JUST AS MEN ARE AND DEVELOPING A PRAGMATIC AND UNSENTIMENTAL CULTURE OF FEMINISM THEY MUST USE THE TECHNIQUES MEN USE TO HELP EACH OTHER POLISH FEMINISM'S IMAGE CREATE AWARDS FOR THEMSELVES AND STRATEGICALLY DEPLOY THEIR CONSIDERABLE MONETARY AND EDUCATIONAL RESOURCES SHE BELIEVES THAT WOMEN WILL FIND USING POWER SATISFYING AND SEXY AND INDEED THERE IS A LOT OF CHATTER ABOUT SEX IN HER BOOK BEFORE SHE SURGES AHEAD INTO THE FUTURE SOMEWHERE DOWN THE ROAD WHO KNOWS WHEN WOMEN WILL ACHIEVE POWER PARITY SHE HOPES THEN WAR WON'T BE SO REFLEXIVE AND SADISM SO RAMPANT BUT THEN AGAIN SHE SAYS THEY MAY BE IF WOMEN SHED THEIR PASSIVE INCLINATIONS SOCIETY MAY BE FAIRER BUT SHE SAYS IT MAY NOT SOME OF THE ARGUMENTS IN THIS BOOK ARE TIRED AND WRONG OTHERS ARE ON THE MARK BUT MANY MORE ARE CONFUSED MS WOLF SWALLOWS WHOLE THE NOTION THAT THE 1980S WERE A BACKLASH AGAINST WOMEN DESPITE THEIR PHENOMENAL GAINS DURING THAT DECADE MS WOLF PERSISTS IN SAYING THAT WOMEN EARN 66 OF WHAT MEN EARN THOUGH THE CORRECT FIGURE IS 71 AND THE DISPARITY IS MUCH SMALLER FOR YOUNGER WOMEN HER INTERPRETATION OF CHILDMOLESTING AND WIFEBEATING STATISTICS IS EXAGGERATED AND SLOPPY MS WOLF'S VIEW OF THE MEDIA IS A JUMBLE SHE DESCRIBES THE MEDIA'S PORTRAYAL OF FEMINISM AS ONE OF OMISSION AND RIDICULE YET SHE SAYS THAT WITHOUT THE WOMEN IN THE MEDIA THE GENDERQUAKE COULD NOT HAVE HAPPENED SHE TELLS US THAT TV AND NEWS MAGAZINES IGNORED THE SIGNIFICANCE OF THE 1992 VOTE BUT THOUSANDS OF COLUMN INCHES AND SIGNIFICANT AIR TIME HAVE BEEN DEVOTED TO EMERGING GENDER DIFFERENCES IN POLITICS SHE SAYS THAT NEWSPAPERS ASSIGNED CREDIT FOR RUTH BADER GINSBURG'S RISE TO HER HUSBAND YES HER HUSBAND WAS MENTIONED IN MANY STORIES AND HE IS BY JUSTICE GINSBURG'S OWN ADMISSION A GREAT BOOSTER BUT NO ONE CREDITS HER DISTINCTION AS A JURIST TO HIM AND SHE DOES NOT RECOGNIZE THE INCONSISTENCY OF TELLING US ON ONE PAGE THAT 16YEAROLDS WHO DO NOT HAVE ACCESS TO ABORTION ARE SILENCED WHILE SAYING ON ANOTHER THAT CHILDREN SHOULD NOT HAVE ACCESS TO SEXUALLY VIOLENT IMAGERY LIKE CIGARETTES ALONGSIDE THE LITANY OF COMPLAINTS MS WOLF FINDS DEVELOPMENTS TO APPLAUD THE 12 MILLION WOMEN WHO BOUGHT GUNS DURING THE '80S THE ARMED SISTERHOOD USE THE POSITIVE LANGUAGE OF FEMINISM INDEPENDENCE AUTONOMY SELFRESPECT THAT SHE ADMIRES THIS MAKES HER AN AMUSINGLY UNLIKELY FRIEND OF THE GUN LOBBY MS WOLF IS MOST INTERESTING WHEN SHE CHALLENGES FEMINISTS ON ISSUES SUCH AS ABORTION ARGUING THAT DIFFERENCES OF OPINION MUST BE RESPECTED SHE EXCORIATES FEMINISM FOR IGNORING WOMEN'S DARKER SIDE REVEALING THAT BETWEEN 32 AND 41 OF THE WOMEN IN PRISON ARE THERE FOR VIOLENT CRIME AND THAT WOMEN ACCOUNT FOR NEARLY 50 OF THE PHYSICAL ABUSE OF CHILDREN HER DISCUSSION OF HER WORK IN A RAPE CRISIS CENTER THAT HAD TO CLOSE ITS DOORS BECAUSE OF THE RIGIDITY OF SOME OF THE FEMALE VOLUNTEERS IS ESPECIALLY POIGNANT MS WOLF WANTS TO RECLAIM FEMINISM FOR ALL WOMEN BUT THERE ARE SO MANY OF US AND TIMES HAVE CHANGED IN THE EARLY '60S THE IDEA THAT WOMEN SHOULD HAVE EQUAL OPPORTUNITY IN THE WORKPLACE WAS NOT SHARED IT IS TODAY EVEN IF WE HAVEN'T LIVED UP TO THE IDEAL PERFECTLY NOW THAT THE ENDS ARE AGREED ON WE DIFFER ABOUT MEANS THAT'S WHY ONLY A THIRD OF WOMEN CALL THEMSELVES FEMINISTS BUT HUGE MAJORITIES OF THEM ENDORSE THE GOALS OF THE WOMEN'S MOVEMENT MS BOWMAN IS A RESIDENT FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON 9401100058 940110 FOOD RETAILER AHOLD SAYS 1993 SALES ROSE 26 ON STRONG DOLLAR SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM FOOD RETAILER AHOLD NV SAID TOTAL SALES FOR 1993 INCLUDING TWO NEWLY CONSOLIDATED DUTCH UNITS ROSE NEARLY 26 TO 271 BILLION GUILDERS 1388 BILLION FROM 1992'S 216 BILLION GUILDERS BOOSTED IN PART BY THE DOLLAR'S STRENGTHENING AGAINST THE GUILDER AHOLD WHICH IS BASED IN THE NETHERLANDS BUT HAS EXTENSIVE US OPERATIONS SAID THAT ACCOUNTING FOR THE FACT THAT 1992 HAD 53 RETAILING WEEKS WHILE 1993 HAD ONLY 52 WEEKS THE INCREASE IN SALES WAS 28 AHOLD SAID RETAILERS TYPICALLY END THEIR CALENDAR YEARS ON THE SATURDAY CLOSEST TO JAN 1 AHOLD IS SCHEDULED TO REPORT OFFICIAL FOURTHQUARTER AND FULLYEAR RESULTS ON MARCH 17 AHOLD'S SALES IN THE NETHERLANDS GREW ROUGHLY 31 TO 109 BILLION GUILDERS BOOSTED BY THE FIRSTTIME CONSOLIDATION OF ITS WHOLLY OWNED JAMIN CONFECTIONARY CHAIN AND OF ITS 73OWNED FOOD WHOLESALE AND RETAIL GROUP SCHUITEMA SALES IN THE US WHERE AHOLD IS AMONG THE TOP 10 FOOD RETAILING GROUPS ROSE TO 1231 BILLION GUILDERS FROM 1112 BILLION GUILDERS A YEAR EARLIER THE RISE WAS BUOYED BY A 63 STRONGER DOLLAR SALES IN THE REST OF EUROPE ROSE SHARPLY TO 14 BILLION GUILDERS FROM 200 MILLION GUILDERS A YEAR EARLIER LARGELY BECAUSE OF ACTIVITIES IN PORTUGAL WHERE IT OWNS OR HOLDS STAKES IN SEVERAL FOOD RETAILERS 9401100057 940110 BROKEN HILL'S JABIRU FIELD MELBOURNE BROKEN HILL PROPRIETARY CO THE AUSTRALIAN STEEL MINING AND PETROLEUM COMPANY SAID THE JABIRU OIL AND GAS FIELD OFF THE NORTHWESTERN COAST OF AUSTRALIA REENTERED PRODUCTION ENDING A 104DAY SHUTDOWN THE JABIRU FIELD CEASED OUTPUT IN EARLY OCTOBER FOR ROUTINE MAINTENANCE OF FLOATING PRODUCTION STORAGE AND OFFLOADING VESSEL JABIRU VENTURE PRODUCTION ON THE CONVERTED TANKER WAS 20000 BARRELS OF OIL A DAY BEFORE THE SHIP WAS DISCONNECTED BHP OWNS 50 OF THE JABIRU FIELD WITH THE REMAINING EQUITY HELD BY AUSTRALIA'S AMPOLEX LTD CULTUS PETROLEUM NL SANTOS LTD NORCEN INTERNATIONAL LTD AND NORPAC SECURITIES AUSTRALIA LTD 9401100056 940110 NIPPONDENSO GETS CONTRACT TOKYO NIPPONDENSO CO ONE OF JAPAN'S BIG MAKERS OF AUTOMOBILE PARTS AND AN AFFILIATE OF AUTOMOBILEMAKING GIANT TOYOTA MOTOR CORP SAID IT WILL SUPPLY PARTS OF AIR CONDITIONERS FOR USE IN CHRYSLER CORP'S NEON CARS SHIPMENTS OF THE PARTS FOR NEON A SMALL LOWPRICED PASSENGER CAR THAT CHRYSLER HAS DEVELOPED TO COMPETE AGAINST JAPANESE CARS ARE PART OF NIPPONDENSO'S LONGSTANDING BUSINESS RELATION WITH CHRYSLER A NIPPONDENSO SPOKESMAN SAID THE PARTS MAKER HAS BEEN SUPPLYING PRODUCTS TO ALL BIG THREE CAR MAKERS IN THE US BY SHIPMENTS FROM JAPAN AND FROM ITS US PLANT COMPRESSORS AND CAPACITORS FOR NEON'S AIR CONDITIONERS WILL BE SHIPPED BY NIPPONDENSO'S US PLANT HE SAID 9401100055 940110 INTERNATIONAL BRIEF PHARMACIA AB SWEDISH CONCERN MAY SELL UNIT TO FRENCH DRUG MAKER DRACONIAN STEPS ORDERED BY THE ITALIAN GOVERNMENT TO SLASH ITS 1994 DRUG BILL HAVEN'T DERAILED EXPANSION PLANS OF SOME EUROPEAN PHARMACEUTICAL COMPANIES ON FRIDAY PRIVATELY OWNED FRENCH DRUG MAKER GROUPE FOURNIER ANNOUNCED IT HAS REACHED AN ADVANCED STAGE OF NEGOTIATIONS TO ACQUIRE THE PHARMACEUTICAL DIVISION OF MILANBASED PIERREL SPA A UNIT OF SWEDEN'S PHARMACIA AB PIERREL'S DRUG OPERATIONS HAVE ESTIMATED ANNUAL SALES OF ROUGHLY 200 MILLION SWEDISH KRONOR 243 MILLION MAINLY OF ANTIBIOTICS AND MEDICINES USED TO TREAT DISEASES OF THE CENTRAL NERVOUS SYSTEM A PHARMACIA SPOKESMAN SAID ACCORDING TO THE SPOKESMAN PIERREL'S DRUGS NO LONGER FIT WITH THE PARENT'S PORTFOLIO OF CORE PRODUCTS BOTH SIDES STRESSED THAT NO AGREEMENT HAS YET BEEN SIGNED AND THAT THE TALKS COULD STILL END UNSUCCESSFULLY 9401100054 940110 THE OUTLOOK THE US ECONOMY MAY DOMINATE FOR YEARS BY DAVID WESSEL WASHINGTON BY VIRTUALLY ANY MEASURE THE US ECONOMY OUTSHINES THOSE OF JAPAN AND GERMANY WHILE THE US JOBLESS RATE FELL LAST MONTH TO A THREEYEAR LOW OF 64 GERMANY'S CLIMBED TO 81 THE US ECONOMY PROBABLY EXPANDED AT BETTER THAN A 45 PACE IN THE FOURTH QUARTER JAPAN'S PROBABLY SHRANK DURING THE PERIOD WITH SOME REASON TREASURY SECRETARY LLOYD BENTSEN BOASTED LAST WEEK THAT THE US IS THE WORLD'S ECONOMIC LEADER THE ENGINE OF GROWTH CAN THIS LAST ONCE GERMANY AND JAPAN EMERGE FROM RECESSION AFTER ALL THE HANDWRINGING OVER AMERICA'S DEFICIT INADEQUATE INVESTMENT SHORTSIGHTED CORPORATIONS AND SOCIAL ILLS IS IT CONCEIVABLE THE US WILL BE THE ECONOMIC ENVY OF THE INDUSTRIALIZED WORLD FIVE YEARS FROM NOW LIKE A ONCEFLABBY ATHLETE THE US HAS BEEN WORKING OUT AT THE HEALTH CLUB FOR THE PAST COUPLE OF YEARS AND IT HAS PAID OFF GERMANY AND JAPAN HAVE JUST FINISHED A BIG LUNCH AND ARE ONLY NOW SIGNING UP AT THE LOCAL ECONOMIC GYM IN THE US A BANKING SYSTEM THAT SEEMED SO TROUBLED JUST A COUPLE OF YEARS BACK IS FLUSH WITH PROFIT AND CAPITAL INTEREST RATES ARE AT THE LOWEST LEVEL IN DECADES THE PRODUCT OF DEFICITREDUCTION AND AN IMPROVED INFLATION OUTLOOK CORPORATE DINOSAURS ARE SHOWING SURPRISING WILLINGNESS TO CHANGE BOTH BECAUSE OF PRODUCTIVITY GAINS AND SLOW WAGE GROWTH US MANUFACTURERS HAVE AN EDGE MORGAN STANLEY FIGURES US WORKERS COST 1670 AN HOUR AT CURRENT EXCHANGE RATES JAPANESE LABOR COSTS 1930 AND GERMAN 2550 THE GAP WILL NARROW BUT THE US ADVANTAGE IS LIKELY TO PERSIST JAPAN'S PREDICAMENT IS STARTLING BECAUSE THE COUNTRY WAS SEEN AS AN ECONOMIC SUPERSTAR BUT WHILE THE US WAS ERECTING OFFICE BUILDINGS THAT IT DIDN'T NEED JAPAN WAS DOING THE SAME WITH FACTORIES IT SOUNDS FLABBERGASTING BUT JAPAN'S EXPERIENCE SUGGESTS A COUNTRY CAN INVEST TOO MUCH ITS DEPENDENCE ON EXPORTS HAS RUN INTO INCREASINGLY TOUGH POLITICAL CHALLENGE FROM THE US AND ECONOMIC COMPETITION FROM THE REST OF ASIA FORCING WRENCHING CHANGE AT JAPANESE MANUFACTURING GIANTS WHAT'S MORE JAPAN'S POLITICAL SYSTEM WHICH HOLDS SWAY OVER THE ECONOMY HAS CRACKED AND RENOVATIONS HAVE ONLY JUST BEGUN JAPAN ALSO IS DISCOVERING MUCH AS THE US DID THAT IT'S HARD TO STIMULATE AN ECONOMY WITH LOWER INTEREST RATES WHEN BANKS DON'T MUCH WANT TO LEND AND BUSINESSES DON'T MUCH WANT TO BORROW CUTTING TAXES TO STIMULATE CONSUMER DEMAND IS ONE OPTION THOUGH AN UNAPPETIZING ONE TO THE CONSERVATIVE MINISTRY OF FINANCE SIGNS ARE THAT THE TAX CUT WILL BE TOO LITTLE TOO LATE PROLONGING THE ECONOMIC TORPOR THE GERMANS ARE A MUCH BIGGER QUESTION SAYS STANLEY FISCHER FORMER CHIEF ECONOMIST FOR THE WORLD BANK THEIR SOCIAL WELFARE STATE HAS GOTTEN OUT OF HAND DEALING WITH EAST GERMANY IS A MUCH BIGGER DEAL THAN THEY OR WE HAD ANY IDEA AS A RESULT GERMANY FACES YEARS OF DISCOMFORT AS ITS GOVERNMENT CUTS ITS BUDGET DEFICIT AND ITS COMPANIES RESTRUCTURE SOUND FAMILIAR GERMANY IS OVERWEIGHT AND OVERPAID SAYS MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST RUDIGER DORNBUSCH THE UNPLEASANT PRESCRIPTION GERMAN WORKERS MUST WORK HARDER EARN LESS AND PAY MORE TAXES NOT THE KIND OF CHANGE THAT COMES EASILY IN CONTRAST TO JAPAN WHERE CORPORATIONS ARE SLOW TO LAY OFF WORKERS BUT QUICK TO SHIFT THEM AROUND INTERNALLY GERMAN WORKERS HAVE BEEN BROUGHT UP TO BELIEVE THEY DESERVE A SPECIFIC JOB AT A SPECIFIC PLANT FOREVER WITH SIX WEEKS VACATION AND THE HIGHEST WAGES IN THE INDUSTRIALIZED WORLD CHANGES IN THE WORLD ECONOMY ALSO PLAY TO US STRENGTHS IF THE 1980S WAS THE DECADE OF VCRS AND PERSONAL COMPUTERS THE 1990S IS THE DECADE OF VIDEOCASSETTES AND SOFTWARE IN THE FIRST GAME JAPAN WAS TOUGH BUT THE US LEAD IN SOFTWARE BE IT MOVIES OR SPREADSHEETS IS UNQUESTIONED THE US IS ALSO MUCH FARTHER ALONG IN THE INEVITABLE AND OFTENUNPLEASANT SHIFT OF WORKERS FROM MANUFACTURING TO SERVICES THAN JAPAN AND ESPECIALLY GERMANY WHERE FACTORIES EMPLOY NEARLY THREE TIMES AS MANY WORKERS PROPORTIONATELY AS IN THE US IT IS FOLLY TO BE TOO CONFIDENT ABOUT ANY FORECAST OF THE ECONOMY FIVE YEARS OUT MR FISCHER SAYS THAT THE US LIKELY WILL DO BETTER IN THE NEXT 10 YEARS THAN IT DID IN THE PREVIOUS 15 YEARS AND THAT JAPAN AND GERMANY LIKELY WILL DO WORSE BUT I SUSPECT THAT FOUR YEARS FROM NOW WE'LL BE GROWING A LITTLE SLOWER PER CAPITA THAN THEY HE SAYS SO DOES MORGAN GUARANTY ECONOMIST WALTER CADETTE WHO PREDICTS THAT JAPAN AND GERMANY WILL BOUNCE BACK FROM RECESSION WITH VIGOR JUST AS THE US DID IN 1982 THE US WILL HAVE PLENTY OF CHANCES TO STUMBLE THE STOCK MARKET COULD CRASH THE FEDERAL RESERVE COULD PREMATURELY CHOKE OFF THE EXPANSION CONGRESS AND THE PRESIDENT COULD ENACT A HEALTHCARE PLAN THAT BACKFIRES THE PRODUCTIVITY BOOMLET COULD PROVE TEMPORARY THAT SAID GIVEN THE CURRENT HORIZON THE PROSPECTS FOR THE US ARE BETTER THAN THEY HAVE BEEN IN YEARS AND FAR BETTER THAN THOSE FACING ITS MAIN RIVALS 9401100053 940110 INTERNATIONAL BRIEF MARUBENI CORP MANAGEMENTPERSONNEL CUTS ARE SPEEDED UP EXPANDED MARUBENI CORP TOKYO ONE OF JAPAN'S GENERAL TRADING COMPANIES SAID IT IS SPEEDING UP AND EXPANDING ITS CUTBACKS IN MANAGEMENT PERSONNEL MARUBENI NOW PLANS TO REDUCE ITS ADMINISTRATIVE PERSONNEL TO ABOUT 580 BY THE END OF MAY A 15 CUT FROM 688 IN MARCH 1993 A SPOKESMAN SAID MARUBENI EARLIER HAD SAID IT PLANNED A 10 CUT IN MANAGEMENT PERSONNEL OVER TWO YEARS MARUBENI ALSO WILL RESTRUCTURE ITS ADMINISTRATIVE DIVISIONS COMBINING SOME INTO TIGHTER GROUPS AND ABOLISHING OTHERS TO FOCUS THE FUNCTIONS WITHIN MANAGEMENT THE MOVES ARE PART OF MARUBENI'S PLAN TO EMPHASIZE ITS SALES DIVISIONS THE EXPECTED REVAMPING OF THE SALES SECTORS LIKELY WILL MEAN LARGER MOREGENERALIZED DIVISIONS RATHER THAN THE PRESENT COLLECTION OF SMALL SPECIALIZED ONES MARUBENI'S SPOKESMAN ADDED THAT IT PLANS IN THE FUTURE TO MOVE IN THE DIRECTION OF BECOMING MORE OF A HOLDING COMPANY THAN A GENERAL TRADING HOUSE HOWEVER HE SAID THERE ARE NO SPECIFIC PLANS FOR SUCH A RESHAPING OF MARUBENI WHICH IS ACTIVE IN ENERGY MACHINERY CONSTRUCTION METALS AND FOODS 9401100052 940110 MIM SELLS 4 STAKE IN RENISON GOLDFIELDS IN 298 MILLION DEAL SPECIAL TO THE WALL STREET JOURNAL BRISBANE AUSTRALIA MIM HOLDINGS LTD AN AUSTRALIAN METALS COMPANY SOLD ITS 4 STAKE IN RENISON GOLDFIELDS CONSOLIDATED LTD FOR 435 MILLION AUSTRALIAN DOLLARS US298 MILLION MIM SAID IT SOLD 79 MILLION COMMON SHARES IN RENISON FOR A550 US377 EACH THE COMPANY DIDN'T ANNOUNCE WHO BOUGHT THE SHARES THE COMPANY SAID THE DECISION TO SELL THE STAKE WAS PART OF A CONTINUING REVIEW OF ASSETS IN ITS ANNUAL REPORT FOR THE YEAR ENDED JUNE 27 MIM SAID ITS STAKE IN RENISON WAS VALUED AT A565 MILLION INDICATING THE COMPANY SOLD THE STAKE FOR A LOSS ON BOOK VALUE OF A13 MILLION RENISON IS A MINERALS AND GOLDMINING COMPANY THAT IS 40OWNED BY HANSON PLC OF BRITAIN AN MIM SPOKESMAN SAID THE COMPANY WON'T INDICATE WHAT OTHER ASSETS MIGHT BE SOLD SAYING ONLY THAT IT IS CONTINUING ITS ASSET REVIEW LOW WORLD METALS PRICES PARTICULARLY OF ZINC COPPER AND LEAD HAVE PUT PRESSURE ON MIM TO CUT OPERATING COSTS AND SELL ASSETS TO BOOST REVENUE THE COMPANY HAS REACTED BY CUTTING LEAD PRODUCTION AT MOUNT ISA THE LARGEST SINGLEMINE LEAD OPERATION IN THE WORLD AND BY REARRANGING THE OWNERSHIP OF EUROPEAN ASSETS THAT WERE JOINTLY HELD WITH GERMANY'S METALLGESELLSCHAFT AG IN DECEMBER MIM COMPLETED A PRIVATE PLACEMENT OF US140 MILLION OF GUARANTEED SENIOR UNSECURED NOTES IN THE US THE FUNDS ARE TO BE USED FOR GENERAL WORKING PURPOSES AND THE REPAYMENT OF SOME MATURING EUROBOND ISSUES 9401100051 940110 BUSINESS BRIEF DATA SWITCH CORP COMPANY TO CUT FORCE 10 INTENSE COMPETITION CITED DATA SWITCH CORP SAID IT WILL DISMISS 50 EMPLOYEES OR ABOUT 10 OF ITS TOTAL WORK FORCE AS A RESULT OF INTENSE PRICE COMPETITION IN THE US AND POOR REVENUE PERFORMANCE OVERSEAS WILLIAM J LIFKA THE COMPANY'S RECENTLY NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE CUTBACKS WERE NEEDED TO RESTRUCTURE THE COMPANY TO OPERATE PROFITABLY AT CURRENT REVENUE LEVELS THE SHELTON CONN COMPANY MAKES DATA CENTER NETWORKING PRODUCTS DESPITE REVENUE GROWTH IN 1993 THE COMPANY'S FINANCIAL PERFORMANCE HAS BEEN WELL BELOW REASONABLE EXPECTATIONS AND THIS SITUATION IS UNACCEPTABLE MR LIFKA SAID FOR THE NINE MONTHS ENDED SEPT 30 DATA SWITCH REPORTED REVENUE OF 582 MILLION COMPARED WITH 522 MILLION FOR THE COMPARABLE PERIOD A YEAR EARLIER 9401100050 940110 BUSINESS BRIEF AIRGAS INC DECEMBER SALES INCREASED FIRM SEES EARNINGS GROWTH AIRGAS INC RADNOR PA SAID IMPROVING ECONOMIC CONDITIONS COUPLED WITH ACQUISITIONS WILL CONTINUE TO DRIVE ITS GROWTH IN THE NEXT SEVERAL YEARS IN JULY SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED FOR THE FIRST TIME IN ALMOST THREE YEARS RISING ABOUT 3 SAMESTORE SALES ROSE ABOUT 5 IN DECEMBER CHAIRMAN AND CHIEF EXECUTIVE PETER MCCAUSLAND SAID HE IS COMFORTABLE WITH EARNINGS ESTIMATES FOR THE FISCAL THIRD QUARTER ENDED DEC 31 OF 14 CENTS A SHARE AND FEELS THE COMPANY SHOULD ACHIEVE YEAREND EARNINGS ESTIMATES OF 57 CENTS A SHARE RESULTS SHOULD BE REPORTED IN EARLY FEBRUARY FOR THE YEAREARLIER THIRD QUARTER THE SPECIALTYGAS AND RELATED EQUIPMENT COMPANY REPORTED NET INCOME OF 29 MILLION OR 19 CENTS A SHARE ON SALES OF 1014 MILLION FOR THE YEAR ENDED MARCH 31 NET INCOME TOTALED 125 MILLION OR 81 CENTS A SHARE ON SALES OF 4108 MILLION YEAREARLIER FIGURES DON'T REFLECT A 2FOR1 STOCK SPLIT NOV 24 9401100049 940110 LAW LEGAL BEAT APPEALS COURT SETS ASIDE RULING ON PENTAGON'S HOMOSEXUAL BAN BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONSERVATIVE MAJORITY OF A FEDERAL APPEALS COURT HERE SET ASIDE A RULING BY THE COURT'S THREE LIBERALS THAT STRUCK DOWN THE MILITARY'S NOWMODIFIED BAN ON HOMOSEXUALS THE FULL US APPEALS COURT FOR THE DISTRICT OF COLUMBIA CIRCUIT SAID FRIDAY THAT IT WOULD RECONSIDER THE CASE OF A FORMER MIDSHIPMAN WHO WAS FORCED OUT OF THE NAVAL ACADEMY AND WASN'T COMMISSIONED AS AN OFFICER BECAUSE HE ADMITTED UNDER QUESTIONING THAT HE WAS GAY IN NOVEMBER A PANEL OF THREE JUDGES RULED THAT THE MILITARY'S FORMER POLICY UNDER WHICH SERVICE MEMBERS COULD BE DISMISSED SOLELY FOR THEIR HOMOSEXUAL ORIENTATION VIOLATED THE CONSTITUTION'S GUARANTEE OF EQUAL PROTECTION OF THE LAWS THE THREE JUDGES ALL WERE APPOINTED BY DEMOCRAT JIMMY CARTER THE CLINTON ADMINISTRATION TRYING TO SHIFT ATTENTION TO ITS NEW SLIGHTLY MORE LENIENT POLICY ASKED THE FULL 10MEMBER COURT TO RECONSIDER ONLY ONE NARROW PART OF THE PANEL'S RULING IN WHICH THE THREE JUDGES ORDERED THE NAVY TO REINSTATE THE PLAINTIFF AS AN OFFICER BUT ON THEIR OWN INITIATIVE AT LEAST SIX OF THE SEVEN MEMBERS OF THE COURT APPOINTED BY PRESIDENTS RONALD REAGAN AND GEORGE BUSH DECIDED TO RETHINK THE PANEL'S ENTIRE RULING THE FULL COURT'S BRIEF ANNOUNCEMENT FRIDAY DIDN'T INDICATE WHAT THE VOTE HAD BEEN TO RECONSIDER THE CASE ADMINISTRATION LAWYERS SPECULATED THAT THE CONSERVATIVE JUDGES PROBABLY WOULD REJECT THE PANEL'S CONSTITUTIONAL REASONING AND WOULD GIVE THE MILITARY MORE LEEWAY TO EXCLUDE HOMOSEXUALS IT IS RELATIVELY UNUSUAL FOR FEDERAL COURTS OF APPEALS TO THROW OUT PANEL DECISIONS AND RETHINK CASES IN THIS MANNER THE FULL COURT'S ACTION CHEERED PENTAGON OFFICIALS WHO HAD WORRIED THAT THE PANEL'S REASONING COULD BE USED BY GAYRIGHTS GROUPS TO FIGHT THE CLINTON ADMINISTRATION'S POLICY UNDER THE NEW RULES GAYS ARE PERMITTED TO SERVE IN THE MILITARY BUT ONLY IF THEY KEEP THEIR SEXUAL ORIENTATION A SECRET THE DECISION TO RECONSIDER THE CASE COULD PUT THE WHITE HOUSE IN A DIFFICULT POLITICAL POSITION BY APPEALING THE PANEL'S RULING ON NARROW GROUNDS THE ADMINISTRATION HOPED TO APPEAR TO BE DEFENDING THE VIEWS OF THE UNIFORMED MILITARY LEADERSHIP WHICH FAVORED THE OLD BAN WHILE ALSO APPEASING LIBERALS AND GAYRIGHTS ACTIVISTS LIBERALS AND HOMOSEXUALS HAVE CRITICIZED MR CLINTON FOR BACKING THE NEW SOCALLED DON'T ASK DON'T TELL POLICY BECAUSE HE ONCE VOWED TO ABOLISH THE GAY BAN ALTOGETHER NOW IT IS EXPECTED THAT THE ADMINISTRATION WILL BE FORCED TO GO ONCE MORE BEFORE THE APPEALS COURT HERE AND STATE ITS VIEWS ON THE CONSTITUTIONALITY OF THE OLD MORE RESTRICTIVE POLICY IN ITS APPEAL OF THE THREEJUDGE PANEL'S RULING THE ADMINISTRATION SAID THAT THE PANEL WAS WRONG AND THAT THE OLD BAN WAS CONSTITUTIONAL BUT THE ADMINISTRATION DECIDED IT WOULDN'T CHALLENGE THAT MAIN PART OF THE PANEL'S DECISION IF THE ADMINISTRATION IS ASKED BY THE COURT TO REARGUE THE CASE AS WOULD BE THE STANDARD PROCEDURE ADMINISTRATION LAWYERS SAID THEY EXPECTED TO REITERATE THEIR VIEW THAT THE OLD POLICY IS CONSTITUTIONAL THE ADMINISTRATION ASSERTED THAT POSITION LAST MONTH IN A SEPARATE CASE PENDING BEFORE THE FEDERAL APPEALS COURT IN SAN FRANCISCO THE APPEALS COURT DIDN'T SET A SCHEDULE FOR BRIEFING OR ORAL ARGUMENT IT COULD ISSUE A NEW RULING WITHOUT FURTHER STATEMENTS FROM THE PARTIES THE THREE MEMBERS OF THE PANEL WERE CHIEF JUDGE ABNER MIKVA AND JUDGES HARRY EDWARDS AND PATRICIA WALD UNDER THE COURT'S STANDARD POLICY THEY HAD BEEN RANDOMLY SELECTED TO HEAR THE CASE THE LAW FIRM BAKER & MCKENZIE DISCRIMINATED AGAINST A FORMER LAWYER BY FIRING HIM BECAUSE HE HAD AIDS A NEW YORK HUMANRIGHTS OFFICIAL HAS RULED LYNNE WEIKART THE STATE'S EXECUTIVE DEPUTY COMMISSIONER OF HUMAN RIGHTS ORDERED THE CHICAGOBASED FIRM TO PAY THE MAN'S ESTATE 500000 FOR WHAT SHE CALLED HIS MENTAL ANGUISH AND HUMILIATION AS WELL AS BACK PAY FROM THE TIME HE WAS FIRED IN 1986 UNTIL HIS DEATH IN 1987 IN A WRITTEN ORDER MS WEIKART DESCRIBED THE FIRM'S BEHAVIOR TOWARD THE LAWYER GEOFFREY BOWERS AS DEVASTATINGLY CRUEL MS WEIKART NOTED THAT MR BOWERS HAD RECEIVED FAVORABLE JOB EVALUATIONS AND THAT THERE WAS NO EVIDENCE THAT HIS WORK PERFORMANCE DETERIORATED BETWEEN HIS MAY 1986 EVALUATION AND HIS FIRING LATER THAT YEAR MR BOWERS WORKED AS AN ASSOCIATE IN BAKER & MCKENZIE'S NEW YORK OFFICE BY FIRING MR BOWERS THE FIRM TOOK FROM HIM THE ONE THING WHICH KEPT HIS SPIRITS HIGH IN SPITE OF IMPENDING DEATH SHE WROTE HIS PSYCHE WAS PUNCTURED HIS SELFRELIANCE WAS SMASHED AND HIS WELLBEING WAS ERASED THE LAW FIRM HAD MAINTAINED THAT MR BOWERS WAS DISMISSED BECAUSE HIS WORK WASN'T SATISFACTORY THE LAW FIRM'S PARTNERS ALSO SAID THAT WHEN THEY FIRED MR BOWERS THEY DIDN'T REALIZE HE HAD AIDS MS WEIKART HOWEVER SAID THAT IT WASN'T CREDIBLE THAT THE PARTNERS DIDN'T KNOW ABOUT MR BOWERS'S CONDITION OR THAT THEY DIDN'T NOTICE HIS FACIAL LESIONS WHICH ARE SYMPTOMS OF THE DISEASE ADD YOUR LOCAL POLICE DEPARTMENT TO THE LIST OF DEFENDANTS WITH DEEP POCKETS PAYING OUT MULTIMILLIONDOLLAR DAMAGE AWARDS IN PERSONALINJURY CASES AN INFORMAL ROUNDUP OF THE BIGGEST DAMAGE AWARDS OF 1993 BY THE NATIONAL LAW JOURNAL REPORTS A SUBSTANTIAL NUMBER OF AWARDS AGAINST POLICE WITH TWO OF THE LARGEST INVOLVING NEW YORK CITY POLICE MULTIMILLIONDOLLAR AWARDS ALSO WERE REPORTED IN PENNSYLVANIA MICHIGAN WASHINGTON DC CALIFORNIA AND NEW MEXICO BIG OUTOFCOURT SETTLEMENTS WERE NOTED IN FLORIDA GEORGIA AND OTHER STATES ACCORDING TO THE SURVEY THE SUITS ALL INVOLVED EITHER BRUTALITY OR THE INJURY OR DEATH OF INNOCENT BYSTANDERS AS A RESULT HIGHSPEED CAR CHASES THE APPARENT INCREASE IN THE NUMBER AND SIZE OF AWARDS SEEMS TO REFLECT JURIES' GROWING INTOLERANCE OF POLICE MISCONDUCT RATHER THAN ANY INCREASE IN SUCH MISBEHAVIOR SAYS MIAMI PLAINTIFFS LAWYER STUART Z GROSSMAN WHAT'S GENERALLY HAPPENING IS THAT PEOPLE NOW VIEW THE POLICE DIFFERENTLY THAN THEY DID BEFORE SAYS MR GROSSMAN PEOPLE ARE NOW ACQUAINTED WITH THE FACT THAT THERE ARE APPROPRIATE POLICE PROCEDURES FOR OFFICERS JUST LIKE THERE ARE FOR PHYSICIANS MR GROSSMAN OBTAINED A BIG SETTLEMENT WITH MIAMI LAST YEAR INVOLVING A POLICE OFFICER WHO USED A STRANGLEHOLD TO SUBDUE A DISABLED CONSTRUCTION WORKER RENDERING HIM COMATOSE FOR LIFE THE CITY AGREED TO PAY LIFETIME MEDICAL COSTS FOR KEEPING THE MAN ALIVE ON A RESPIRATOR 62 MILLION IN DAMAGES TO THE PLAINTIFF'S FAMILY AND HIS ESTATE AND ATTORNEY'S FEES THE SINGLE LARGEST JURY AWARD AGAINST A POLICE DEPARTMENT 1006 MILLION WAS HANDED DOWN IN NEW YORK IN CASES INVOLVING A MOTHER AND CHILD SERIOUSLY INJURED BY A POLICE CAR CHASING A MOTORCYCLIST THAT AWARD WAS LATER REDUCED TO 45 MILLION ACCORDING TO THE STORY IN TODAY'S NATIONAL LAW JOURNAL THE BIGGEST DAMAGE AWARD FOR EXCESSIVE FORCE 225 MILLION ALSO WAS DELIVERED IN NEW YORK THAT CASE INVOLVED AN ALTERCATION BETWEEN POLICE AND A NEW YORK RESIDENT WHO WAS SHOT IN THE BACK AND PARALYZED FROM THE CHEST DOWN ACCORDING TO PROFESSIONAL ORGANIZATIONS POLICE DEPARTMENTS ARE RESPONDING TO INCREASED LIABILITY BY PROVIDING BETTER TRAINING LIABILITY IS CERTAINLY AN ISSUE SAYS ROY KIME LEGISLATIVE COUNSEL FOR THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE YOU DON'T WANT TO USE ALL YOUR RESOURCES PAYING OFF HUGE JUDGMENTS BUT THE REAL ACTIVITY HAS BEEN GENERATED BY THE DESIRE TO HEAD OFF THOSE LAWSUITS BY NOT BEING INVOLVED IN THE OFFENDING ACT IN THE FIRST PLACE EDWARD FELSENTHAL AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9401100048 940110 BUSINESS BRIEF FIGGIE INTERNATIONAL INC SIGNIFICANT' LOSS ESTIMATED FOR 4TH QUARTER AND YEAR FIGGIE INTERNATIONAL INC SAID IT INCURRED A SIGNIFICANT LOSS FOR THE FOURTH QUARTER AND YEAR AND CONFIRMED THAT IT'S SEEKING TO SELL SOME NONCORE ASSETS TO PAY DOWN DEBT FIGGIE EARNED 103 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER AND 283 MILLION OR 161 A SHARE FOR ALL OF 1992 THE WILLOUGHBY OHIO COMPANY SAID ITS EARNINGS SLUMP IS THE RESULT OF HEAVY SPENDING ON CONSOLIDATIONS PLANT CLOSINGS AND CONVERSION TO NEW TECHNOLOGY IN THE FACE OF PROTRACTED RECESSIVE MARKETS ANALYSTS HAD EXPECTED THE COMPANY TO SHOW A SMALL PROFIT IN THE FOURTH QUARTER AND POST A SMALL LOSS FOR THE YEAR HARRY E FIGGIE JR CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS THE COMPANY TO SEE CONSIDERABLE PROFIT IMPROVEMENT IN LATE 1994 HE ALSO HELD OUT THE PROSPECT OF SUBSTANTIAL INSURANCE RECOVERIES FOR LOSS OF PROPERTY AND BUSINESS INTERRUPTION DUE TO THIRDQUARTER FLOODS 9401100047 940110 BUSINESS BRIEF CENTRAL & SOUTH WEST CORP CHARGE TAKEN IN 4TH PERIOD PROFIT FELL BELOW ESTIMATES CENTRAL & SOUTH WEST CORP DALLAS SAID IT EXPECTS TO REPORT A PRETAX CHARGE OF ABOUT 100 MILLION FOR THE FOURTH QUARTER DUE TO CERTAIN REORGANIZATION COSTS INCLUDING AN EARLYRETIREMENT PROGRAM IN THE YEAREARLIER FOURTH QUARTER THE UTILITY HOLDING COMPANY HAD NET INCOME OF 82 MILLION OR 43 CENTS A SHARE ON REVENUE OF 852 MILLION THE COMPANY ALSO SAID IT IS CONSIDERING CERTAIN ACCOUNTING CHANGES INCLUDING THE WAY IT RECORDS UNBILLED REVENUE AND RETIREE BENEFITS WHICH MAY RESULT IN OTHER NONRECURRING CHARGES FOR THE QUARTER STEVE MCDONNELL CENTRAL & SOUTH WEST'S TREASURER DECLINED TO ELABORATE BUT HE SAID BECAUSE OF THE 100 MILLION CHARGE THE COMPANY EXPECTS TO REPORT 1993 EARNINGS BELOW ANALYSTS' EXPECTATIONS OF ABOUT 376 MILLION OR 2 A SHARE OBVIOUSLY EARNINGS WILL BE LESS THAN THAT HE SAID FOR 1992 THE COMPANY HAD PROFIT OF 382 MILLION OR 203 A SHARE ON REVENUE OF 331 BILLION 9401100046 940110 PUNDITS SET YOUR METRONOMES AT PRESTO BY HERBERT STEIN HAVE YOU EVER CONSIDERED HOW WASTEFUL THE STANDARD PANEL DISCUSSION ON TV IS TYPICALLY THE SCENARIO GOES SOMETHING LIKE THIS THERE IS A MODERATOR AND FOUR PANELISTS A LIBERAL CONGRESSMAN A CONSERVATIVE CONGRESSMAN A CONSERVATIVE PUNDIT AND A LIBERAL PUNDIT THE MODERATOR ANNOUNCES THE SUBJECT AND INTRODUCES THE PANELISTS BY NAME AND POSITION IN THE SPECTRUM THEN HE ASKS ONE OF THE PANELISTS A QUESTION AFTER THE ANSWER THE MODERATOR REFERS EITHER THE QUESTION OR THE PREVIOUS ANSWER TO ANOTHER PANELIST AND SO IT GOES ON MODERATOR PANELIST MODERATOR PANELIST UNTIL 15 MINUTES HAVE PASSED THE MODERATOR THANKS EVERYONE AND THE PERFORMANCE IS OVER NOTHING MUCH HAS BEEN SAID CONTRAST THAT WITH A PERFORMANCE OF A STRING QUARTET THERE IS NO MODERATOR OR CONDUCTOR THE PERFORMERS ARE NOT INTRODUCED EVERYONE IN THE AUDIENCE KNOWS WHO THEY ARE BY WHERE THEY SIT AND BY THE INSTRUMENTS THEY HOLD IN THEIR HANDS THEY START WITHOUT ANY OUTSIDE INTERVENTION AND END IN THE SAME WAY BUT THE KEY THING IS THAT ALMOST ALL THE TIME THEY ARE ALL PLAYING AT ONCE THEY GET A LOT DONE IN 15 MINUTES MANY TIMES MORE THAN IF THEY HAD ALL PLAYED SERIATIM AS IN A PANEL DISCUSSION I CAN IMAGINE A MUCH MORE EFFICIENT PANEL DISCUSSION THAT WOULD GO LIKE THIS THE FOUR PANELISTS ARE SEATED IN A SEMICIRCLE FROM LEFT TO RIGHTLIBERAL CONGRESSMAN LC LIBERAL PUNDIT LP CONSERVATIVE PUNDIT CP CONSERVATIVE CONGRESSMAN CC AT A NOD OF THE HEAD FROM THE LIBERAL CONGRESSMAN THE RECITATION BEGINS ALL TOGETHER IT WILL SOON BE JANUARY 20TH YES IT WILL SOON BE NOON OF JANUARY 20TH NOW COMES THE WITCHING HOUR FOR TALKING HEADS IT HAS BEEN A YEAR OF UPS AND DOWNS FOR CLINTONS LC LP MORE UPS THAN DOWNS CC CP MORE DOWNS THAN UPS ALL TOGETHER NAFTA LC LP NAFTA WAS A GREAT TRIUMPH FOR CLINTON CC CP NAFTA WAS A GREAT TRIUMPH FOR GINGRICH ALL TOGETHER THE MAIN THING IS THE ECONOMY WHICH IS RISING LC SOLO IT'S TOO BAD THE REPUBLICANS DEFEATED THE PRESIDENT'S STIMULUS PACKAGE CC SOLO IT'S A GOOD THING WE STOPPED THE PRESIDENT'S STIMULUS PACKAGE CP LP CONSIDER THE BUDGET PACKAGE THAT WAS THE BIG ECONOMIC NEWS IT WAS A LC LP TRIUMPH INVESTMENT TO SPUR GROWTH CC CP DISASTER TAXES WILL STUNT GROWTH ALL TOGETHER LOOK AT THE SHAPE OF THE WORLD AND WHAT CLINTON HAS DONE ALL TOGETHER NEXT YEAR CRITICAL YEAR DEFINING MOMENT TURNING POINT CONGRESSIONAL ELECTIONS LC CC HEALTH CARE WILL BE THE KEY ISSUE ALL TOGETHER BUT FUNDAMENTALLY IT WILL BE VALUES THAT COUNT LC LP MEMPHIS SPEECH BITING THE BULLET CC CP SEX SEX SEX IN THIS WAY TV COULD COVER IN FIVE MINUTES WHAT NOW TAKES AT LEAST 15 THE TIME SAVED COULD BE ACCUMULATED AND USED FOR A DAY OF SILENCE AT THE END OF THE YEAR NOW YOU MAY SAY THAT A DRAWBACK OF THIS PROPOSAL IS THAT WHILE IT ECONOMIZES ON THE TIME OF THE PERFORMERS IT DOES REQUIRE A SCRIPTWRITER THERE HAVE BEEN SOME MUSICIANS ESPECIALLY JAZZ PERFORMERS WHO HAVE BEEN ABLE TO PLAY TOGETHER EXTEMPORANEOUSLY WITHOUT A WRITTEN SCRIPT BUT THAT IS A RARE ABILITY AND WE WILL HAVE TO COUNT ON PROVIDING A SCRIPT FOR THE PANELISTS THAT IS NOT A SERIOUS PROBLEM HOWEVER ONE SCRIPT CAN SERVE FOR MANY PANELISTS AND WITH ONLY SLIGHT MODIFICATIONS COULD REMAIN RELEVANT FOR LONG PERIODS OF TIME IN FACT EVEN WITH SUPPOSEDLY SPONTANEOUS AND INDEPENDENT CONTRIBUTIONS BY PANELISTS TODAY THE PERFORMANCES DO NOT CHANGE MUCH FROM YEAR TO YEAR NOW THAT I'VE THOUGHT THIS ALL OUT I THINK THAT I WILL APPLY TO THE NATIONAL ENDOWMENT FOR THE HUMANITIES FOR A GRANT THIS COULD BE A SMALL BUT REAL SERVICE TO HUMANITY MR STEIN AN AMERICAN ENTERPRISE INSTITUTE FELLOW IS A MEMBER OF THE JOURNAL'S BOARD OF CONTRIBUTORS 9401100045 940110 WHAT'S NEWS WORLDWIDE A NATO SUMMIT OPENS TODAY AMID TALK OF AIR STRIKES IN BOSNIA PRESIDENT CLINTON BEGAN HIS FIRST EUROPEAN TRIP TRYING TO BOOST THE ALLIANCE'S IMAGE AS A SURGE OF SHELLING IN SARAJEVO PUSHED BOSNIA TO THE TOP OF THE SUMMIT AGENDA A SENIOR US OFFICIAL ACKNOWLEDGED THAT WASHINGTON ISSUED A WARNING TO BOSNIAN SERBS AFTER THE RENEWED ATTACKS ON THE CAPITAL HOWEVER THE US OFFICIAL SIDESTEPPED QUESTIONS ON WHETHER ANY OF THE NATO ALLIES HAVE ASKED THE US TO CONDUCT BOMBING RAIDS THE US WAS CLOSE TO AN ACCORD WITH UKRAINE ON THE DESTRUCTION OF THAT COUNTRY'S NUCLEAR WEAPONS CLINTON MADE PRELIMINARY PLANS TO STOP IN KIEV WEDNESDAY TO INITIAL THE PACT PRESIDENT SALINAS NAMED A COMMISSION TO PROMOTE DIALOGUE WITH MEXICAN REBELS WHO LED A REVOLT IN THE STATE OF CHIAPAS LAST WEEK MEANWHILE SEVERAL ACTS OF VIOLENCE ELSEWHERE IN MEXICO SPARKED CONCERN THAT THE UPRISING COULD BE SPREADING OVER THE WEEKEND THREE CAR BOMBS EXPLODED IN MEXICO CITY VICE PRESIDENT GORE LASHED OUT AT REPUBLICAN LAWMAKERS FOR CRITICIZING CLINTON FOR AN ALLEGED COVERUP REGARDING AN INVESTMENT IN A FAILED ARKANSAS REALESTATE VENTURE MEANWHILE SEN MOYNIHAN SAID THAT A SPECIAL PROSECUTOR SHOULD BE NAMED TO INVESTIGATE THE MATTER A FEDERAL APPEALS COURT SET ASIDE A RULING BY THE COURT'S THREE LIBERAL MEMBERS THAT STRUCK DOWN THE MILITARY'S NOWMODIFIED BAN ON HOMOSEXUALS THE FULL COURT SAID FRIDAY IT WOULD RECONSIDER THE CASE OF A FORMER MIDSHIPMAN WHO WAS FORCED OUT OF THE NAVAL ACADEMY BECAUSE HE ADMITTED HE WAS GAY SOME CABLE NETWORK EXECUTIVES SAID THEY WOULD PERMIT MONITORING OF THEIR PROGRAMS FOR VIOLENT CONTENT AS A RESULT OF THE TENTATIVE AGREEMENT REACHED FRIDAY WITH THE NETWORK OFFICIALS ILLINOIS SEN SIMON INDICATED THAT FEDERAL LEGISLATION LIMITING VIOLENT CONTENT ON TV MAY NOT BE NEEDED SAUDI ARABIA IS CLOSE TO RESTRUCTURING 10 BILLION IN PAYMENTS DUE OVER TWO YEARS TO FIVE OF THE BIGGEST US DEFENSE CONTRACTORS THE SAUDI AMBASSADOR TO THE US SAID THE US AND CHINA ARE LIKELY SOON TO CONCLUDE A PACT THAT WOULD TAKE BACK AT LEAST SOME OF THE CUTS IN CHINA'S TEXTILE QUOTAS THAT WERE ANNOUNCED BY WASHINGTON LAST WEEK AS THE TWO SIDES TRADED PUBLIC BARBS CHINESE AND US OFFICIALS MET TO ARRANGE NEW TALKS ON A PACT TO REPLACE AN EXPIRED ACCORD SEN MOYNIHAN DECLARED THAT WELFARE REFORM SHOULDN'T HAVE TO WAIT IN LINE BEHIND HEALTHCARE LEGISLATION THE SENATE FINANCE COMMITTEE CHAIRMAN SAID HE WAS TROUBLED BY A MEETING LAST WEEK WITH WHITE HOUSE OFFICIALS WHO SAID REPEATEDLY WE WON'T HAVE TIME FOR WELFARE UNTIL WE GET THIS HEALTHCARE BILL ABU DHABI AND THE US HAVE REACHED AN ACCORD PERMITTING THE US ARREST OF A SUSPECT IN THE BANK OF CREDIT & COMMERCE INTERNATIONAL SCANDAL THE SUSPECT A FORMER BCCI OFFICIAL INDICTED ON CHARGES RELATING TO THE ACQUISITION OF FIRST AMERICAN BANKSHARES IS TO BE TURNED OVER TO PROSECUTORS WITHIN FOUR MONTHS AN IRANCONTRA REPORT WAS ORDERED RELEASED BY A THREEJUDGE PANEL THAT EXPRESSED DISCOMFORT WITH THE REPORT'S ACCUSATORY TONE AND ITS USE OF MATERIAL DRAWN FROM SECRET GRAND JURY TESTIMONY THE PANEL SAID THAT THE SPECIAL PROSECUTOR'S REPORT SHOULD BE MADE PUBLIC PROVIDED THE SUPREME COURT DOESN'T INTERVENE GUNMEN IN SOUTH AFRICA KILLED A JOURNALIST AND WOUNDED TWO OTHER PEOPLE IN AN ATTACK ON A HIGHLEVEL AFRICAN NATIONAL CONGRESS DELEGATION THE SHOOTING BROKE OUT AS THE ANC OFFICIALS INCLUDING GENERALSECRETARY RAMAPHOSA TOURED KATLEHONG ONE OF THE COUNTRY'S MOST VOLATILE TOWNSHIPS CLEANUP CREWS SIPHONED OIL FROM A LEAKING BARGE OFF PUERTO RICO WHILE WORKERS ON SHORE SCOOPED AND SKIMMED THE OIL FROM SAN JUAN'S BEACHES AND LAGOONS AN ESTIMATED 750000 GALLONS OF OIL SPILLED FROM THE BARGE WHEN IT WENT AGROUND FRIDAY WILDFIRES FLARED AROUND SYDNEY AUSTRALIA AS WINDS INTENSIFIED AND HUNDREDS MORE PEOPLE WERE FORCED TO FLEE THEIR HOMES FOUR PEOPLE HAVE BEEN KILLED AND OVER 60 INJURED SINCE THE FIRES BEGAN A WEEK AGO 9401100044 940110 WHAT'S NEWS BUSINESS AND FINANCE VIACOM'S LASTMINUTE PACT TO MERGE WITH BLOCKBUSTER AND USE CASH FROM THAT DEAL TO SWEETEN ITS OFFER FOR PARAMOUNT STILL APPEARS TO LEAVE RIVAL QVC NETWORK AHEAD IN THE BIDDING VIACOM SHARPLY INCREASED THE AMOUNT OF CASH IT IS OFFERING BUT THE REMAINING SECURITIES IN THE CASH AND STOCK OFFER BROUGHT THE VALUE OF VIACOM'S BID AS OF FRIDAY TO 94 BILLION QVC'S OFFER IS VALUED AT 99 BILLION FEDERATED DEPARTMENT STORES AGREED TO TEMPORARILY REFRAIN FROM TAKING FURTHER STEPS TO MERGE WITH RH MACY AND MAY WAIT UNTIL SEPT 15 FOR MACY TO FILE ITS REORGANIZATION PLAN BEFORE ACTING THE TACK ALLOWS FEDERATED TO AVOID ALIENATING MACY WHILE GAINING A CHANCE TO SEE ITS HAND ORACLE WON A BELL ATLANTIC CONTRACT TO SUPPLY MULTIMEDIA GEAR AND SOFTWARE GAINING WHAT COULD BE A VITAL ALLY IN THE PROMISING MARKET FOR NEXTGENERATION COMMUNICATION NETWORKS U S WEST IS EXPECTED TO UNVEIL PLANS TO CONSTRUCT MULTIMEDIA NETWORKS IN 20 CITIES OVER FIVE YEARS AIMING TO SERVE INTERACTIVE FARE TO OVER 750000 HOMES BY THE END OF 1995 AND TO ADD HALF A MILLION HOMES ANNUALLY THEREAFTER PACIFIC TELESIS PLANS TO CUT 10000 JOBS AT ITS PACIFIC BELL UNIT OVER FOUR YEARS AND TAKE A 665 MILLION FOURTHQUARTER CHARGE AS IT GIRDS FOR COMPETITION IN ITS LOCAL TELEPHONE MARKET CLINTON'S ADVISERS AGREED TO RECOMMEND THAT BROOKINGS INSTITUTION ECONOMIST GEORGE PERRY BE NOMINATED TO A FEDERAL RESERVE BOARD SEAT THE UNEMPLOYMENT RATE FELL TO 64 OF THE WORK FORCE IN DECEMBER FROM 65 IN NOVEMBER AND 73 A YEAR AGO BUT THE MANUFACTURING AND CONSTRUCTION SECTORS WHICH HAD OFFERED ENCOURAGING SIGNS OF JOB GROWTH RECENTLY ADDED VIRTUALLY NO NEW WORKERS HEALTHTRUST IS NEGOTIATING TO BUY EPIC HEALTHCARE AS THE CONSOLIDATION TREND IN THE HOSPITAL FIELD CONTINUES BOEING AND FOUR EUROPEAN PARTNERS TENTATIVELY AGREED TO GO ON WITH THE NEXT PHASE IN THEIR PROPOSED JOINT EFFORT TO BUILD THE WORLD'S LARGEST JET DESPITE THE REALIZATION THAT THE PROJECT WILL LIKELY COST AT LEAST 50 MORE THAN THE 10 BILLION ESTIMATED A YEAR AGO PEOPLE FAMILIAR WITH THE TALKS SAY IBM IS CONSIDERING SELLING THE MUTUALFUND GROUP IT RUNS FOR EMPLOYEES IN ITS BID TO SHED NONCORE BUSINESSES RITE AID PLANS TO SELL FOUR NONCORE UNITS REPURCHASE 25 OF ITS COMMON SHARES AND SHUT 200 STORES RESULTING IN A 91 MILLION FOURTHQUARTER CHARGE FOOD LION PLANS TO CLOSE 88 STORES THIS YEAR AND TAKE A 1705 MILLION PRETAX CHARGE AGAINST 1993 EARNINGS CONRAN STORES SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE SEC DECIDED TO SEEK MORE MONEY FROM GOLDMAN SACHS IN A PROPOSED SETTLEMENT OF AN ANTICIPATED ADMINISTRATIVE COMPLAINT ALLEGING GOVERNMENTSECURITIES TAX TRADES CALFED'S KEY SHAREHOLDERS PLAN TO ASK THEIR BOARD TO CONSIDER SELLING THE THRIFT TO GOLDEN WEST FINANCIAL WHICH HAS OFFERED ABOUT 630 MILLION FOR IT BONDS LEHMAN BROTHERS TREASURY INDEX 560657 UP 8013 COMMODITIES OIL 1532 A BARREL OFF 10 CENTS DOW JONES FUTURES INDEX 14119 UP 012 SPOT INDEX 12848 OFF 009 DOLLAR 11190 YEN OFF 075 17273 MARKS OFF 00172 9401100043 940110 BUSINESS BRIEF LAWTER INTERNATIONAL INC CHEMICAL FIRM TAKES CHARGE OF 22 MILLION IN 4TH QUARTER LAWTER INTERNATIONAL INC SAID IT WILL TAKE A ONETIME CHARGE OF 22 MILLION IN THE FOURTHQUARTER FROM THE ADOPTION OF AN ACCOUNTING CHANGE REGARDING PAST UNDISTRIBUTED EARNINGS OF ITS FOREIGN SUBSIDIARIES IN ADDITION LAWTER BASED IN NORTHBROOK ILL SAID IT WILL RECORD ADDITIONAL CHARGES OF 6 MILLION IN THE QUARTER TO COVER SUCH MATTERS AS VOLUNTARY WASTE DISPOSAL REFURBISHING AND CLEANING WASTEWATER TREATMENT FACILITIES IN THE YEAREARLIER FOURTHQUARTER LAWTER EARNED 66 MILLION OR 15 CENTS A SHARE ON SALES OF 425 MILLION THE MAKER OF PRINTING INK CHEMICALS SAID THAT THROUGH THE END OF 1993 IT HAS ACCUMULATED 71 MILLION OF FOREIGN EARNINGS WHICH HAD BEEN DEEMED TO BE PERMANENTLY REINVESTED ABROAD BUT LAWTER WILL NOW MAKE THESE FUNDS AVAILABLE TO THE US PARENT FOR WORKING CAPITAL CAPITAL EXPENDITURES AND POTENTIAL US ACQUISITIONS 9401100042 940110 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE CHINESE GOVERNMENT ORDERED CITIES AND PROVINCES TO SET MINIMUM WAGES BY JULY TO PROTECT WORKERS FROM EXPLOITATION BY PRIVATE AND FOREIGN EMPLOYERS THE CHINA DAILY SAID PAY LEVELS MUST BE AT LEAST HALF THE LOCAL AVERAGE WAGE AS TENS OF THOUSANDS OF CHINESE HAVE FLOCKED TO BOOMING COASTAL CITIES FOR FACTORY JOBS OFFICIAL MEDIA RECENTLY HAVE REPORTED ABOUT LONG HOURS LOW PAY HARSH DISCIPLINE AND UNSAFE CONDITIONS IN VENTURES WITH FOREIGN PARTICIPATION SHANGHAI ALREADY HAS SET ITS MINIMUM WAGE AT 24 A MONTH REFLECTING HIGHER LIVING COSTS IN SOUTHERN CHINA NEAR HONG KONG THE SHENZHEN AND ZHUHAI SPECIAL ECONOMIC ZONES SET THEIR MONTHLY MINIMUMS AT 32 AND 37 RESPECTIVELY THESE ARE SUBSISTENCE SUMS AS PRICES ARE RISING SHARPLY SHENZHEN WORKERS' WAGES LAST YEAR AVERAGED 74 A MONTH COMPANIES THAT DELAY PAYING WAGES WILL BE PENALIZED THE LABOR MINISTRY SAID CITING A FACTORY IN ZHUHAI THAT OWED ITS WORKERS BACK WAGES DATING TO 1989 POLISH LEGISLATORS PASSED AND SENT TO THE SENATE A COPYRIGHT MEASURE TO COMBAT PIRACY AND RAISE INTELLECTUALPROPERTY PROTECTION TO WESTERN STANDARDS THE LEGISLATION WOULD REPLACE A DECADESOLD COPYRIGHT LAW THAT MAINLY PROTECTED AUTHORS THE UPDATE COVERS ALL FORMS OF ARTISTIC AND INTELLECTUAL PROPERTY RANGING FROM BOOKS AND FILMS TO COMPUTER SOFTWARE AND APPLIES TO ALL STAGES OF CREATION PRODUCTION AND DISTRIBUTION IT ALSO EXTENDS AUTHORS' RIGHTS TO 50 FROM 25 YEARS AFTER DEATH VIOLATORS COULD BE JAILED FOR FIVE YEARS PIRACY IS RAMPANT IN POLAND AS FEW AS 1 IN 20 MUSIC CASSETTES ARE LEGALLY MADE HAKUI JAPAN AIMS TO BECOME THE WORLD'S SOURCE FOR THE STUDY OF UNIDENTIFIED FLYING OBJECTS AND OTHER SPACE PHENOMENA THE MAIN ATTRACTION OF A CENTER TO BE BUILT BY THE COASTAL CITY ON THE SEA OF JAPAN WILL BE A LIBRARY WITH MORE THAN 10000 OFFICIAL DOCUMENTS ON UFO PHENOMENA IN JAPANESE AND ENGLISH THE CITY SAID IT HAS ACQUIRED THE DOCUMENTS OVER THE PAST DECADE FROM SOURCES SUCH AS THE US CENTRAL INTELLIGENCE AGENCY FOREIGN INVESTMENT IN ROMANIAN COMPANIES TOTALED 7506 MILLION AS OF LAST MONDAY UP 43 FROM THE BEGINNING OF 1993 THE NUMBER OF FIRMS WITH FOREIGN PARTICIPATION CONCENTRATED IN THE INDUSTRIAL SECTOR INCREASED 41 TO 29134 ALMOST TWOTHIRDS OF THESE ENTERPRISES ARE IN BUCHAREST ATTRACTING MORE THAN HALF THE FUNDS FROM ABROAD WESTERN EUROPE ACCOUNTED FOR 67 OF THE TOTAL SUM INVESTED FOLLOWED BY NORTH AMERICA AT 18 COFFEE SHOPS IN THE NETHERLANDS THAT OPENLY SELL MARIJUANA FORMED A UNION TO IMPROVE THEIR IMAGE AND DISTANCE THEMSELVES FROM THE CRIMINAL DRUG SCENE THE CANNABIS DEALERS UNION INVOLVING ABOUT 40 OF THE COUNTRY'S 1500 COFFEE SHOPS AIMS TO NORMALIZE MARIJUANA USE AND PROVIDE A UNITED FRONT FOR TALKS WITH THE GOVERNMENT MARIJUANA IS ILLEGAL IN THE NETHERLANDS BUT TOLERATED FOR PERSONAL CONSUMPTION SOME COFFEE SHOPS EVEN PROVIDE CANNABIS MENUS THE UNION FORBIDS ITS MEMBERS TO SELL MARIJUANA TO ANYONE YOUNGER THAN 16 OR TO SELL HARD DRUGS VISITORS TO THE PHILIPPINES FROM ABROAD IN LAST YEAR'S FIRST 10 MONTHS SLIGHTLY EXCEEDED ONE MILLION AN 18 JUMP FROM THE YEAREARLIER PERIOD IN ALL OF 1992 THE COUNTRY RECORDED 11 MILLION FOREIGN VISITORS IN THE LATEST PERIOD TOURISTS FROM EAST ASIA MAINLY JAPAN AND TAIWAN ACCOUNTED FOR 44 OF THE TOTAL FOLLOWED BY NORTH AMERICANS AT 21 THE TOURISM AGENCY ATTRIBUTED THE INCREASE TO AGGRESSIVE MARKETING AND INCREASING CONFIDENCE IN THE PHILIPPINE ECONOMY ANALYSTS SAID THE COUNTRY ALSO IS BENEFITING FROM PENTUP DEMAND FROM TRAVELERS WHO SHUNNED IT IN RECENT YEARS BECAUSE OF POLITICAL TURMOIL AND NATURAL DISASTERS A JAPANESE GOVERNMENT STUDY FOUND THAT IN THE PAST FISCAL YEAR ONE IN EVERY SIX MEN WORKED AT LEAST 3100 HOURS A LEVEL THAT PHYSICIANS SAID CAN LEAD TO KAROSHI OR DEATH FROM TOO MUCH WORKFEARED BY FULLY 46 OF THOSE EMPLOYEES LONG INTENSIVE WORK IS ONE OF THE MAIN FACTORS CAUSING AN INCREASE IN COMPLAINTS OF HEALTH DISORDERS IN JAPANESE WORKPLACES THE ECONOMIC PLANNING AGENCY REPORT SAID THE MOST DRASTIC CASE IS KAROSHI JAPANESE OVERALL CLOCK FAR MORE HOURS A YEAR ON THE JOB THAN EUROPEANS AND AMERICANS THE AVERAGE OF 2124 RECORDED HOURS WAS ABOUT 200 MORE THAN IN THE US AND BRITAIN AND BETWEEN 400 AND 500 MORE THAN IN FRANCE AND GERMANY BUT THAT OFFICIAL JAPANESE AVERAGE IS CONSIDERED UNDERSTATED BECAUSE MOST WORKERS PUT IN AN AVERAGE OF 15 HOURS A DAY OF SOCALLED SERVICE OVERTIME EXTRA WORK THAT IS UNRECORDED AND UNPAID IN ISRAEL CHOOSING EPITHETS CARELESSLY WHEN INSULTING CITY EMPLOYEES CAN BE COSTLY A TEL AVIV COURT IMPOSED AN 83 FINE FOR CALLING AN AGENCY CHIEF A LIAR BUT A 500 PENALTY FOR CALLING A TRAFFICTICKET AGENT A MANIAC LASTMINUTE PASSENGER BOARDING AT HONG KONG'S KAI TAK AIRPORT DOESN'T WORK ANYMORE AS OF JAN 1 AIRLINE CHECKIN DESKS CLOSE 40 MINUTES PRIOR TO A FLIGHT'S DEPARTURE TIME AND BOARDING GATES 10 MINUTES BEFORE DEPARTURE WHICH HAS HELPED IMPROVE ONTIME PERFORMANCE 9401100041 940110 MET LIFE CHAIRMAN CALLS FOR SCRUTINY OF AGENTS' SALES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE CHAIRMAN OF METROPOLITAN LIFE INSURANCE CO WHICH IS EMBROILED IN A CONTROVERSY OVER ITS SALES PRACTICES HAS CALLED FOR TIGHTER REGULATIONS OVER THE SALE OF LIFE INSURANCE MET LIFE CHAIRMAN HARRY KAMEN SAID HE SUPPORTS AN INDUSTRYSPONSORED REGULATORY MECHANISM TO LICENSE AND DISCLIPINE THE NATION'S 17 MILLION INSURANCE AGENTS HE WOULD LIKE TO SEE IT MODELED AFTER THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH OVERSEES STOCK BROKERS THE NASD IS FAIRLY STRICT ABOUT DISCIPLINING PEOPLE AND I THINK WE NEED SOMETHING LIKE THAT MR KAMEN SAID THE INDUSTRY SHOULD START LOOKING AT IT SKEPTICS SAID MR KAMEN'S REMARKS APPEARED SELFSERVING GIVEN THE PROBLEMS SURROUNDING MET LIFE BUT THEY SAID MET LIFE'S SUPPORT COULD GIVE A BOOST TO THE IDEA WHICH OTHER INSURERS SAY THEY OPPOSE FLORIDA AND 12 OTHERS STATES ARE INVESTIGATING ALLEGATIONS THAT MET LIFE PERSUADED CUSTOMERS TO BUY LIFE INSURANCE BY DISGUISING IT AS RETIREMENT PLANS THE COMPANY HAS ALREADY AGREED TO REFUND PREMIUMS TO UP TO 60000 CUSTOMERS WHO MAY HAVE BEEN MISLED A VERSION OF WHAT MR KAMEN PROPOSES IS INCLUDED IN A BILL SPONSORED BY HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL DMICH WHICH WOULD IMPOSE FEDERAL REGULATION ON THE INSURANCE INDUSTRY IT'S UNLIKELY THE DINGELL BILL WILL PASS THIS YEAR BUT THE PROPOSAL FOR CREATING AN OVERSIGHT AUTHORITY FOR AGENTS COULD BE CARVED OUT AND PASSED SEPARATELY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOUNDED IN 1939 ESTABLISHES CONDUCT RULES FOR SECURITIES BROKERS AND HAS A STAFF OF FIELD EXAMINERS TO MAKE SURE AGENTS ARE FOLLOWING ITS GUIDELINES THE ASSOCIATION HAS THE POWER TO FINE BROKERS AND COMPANIES THE NASD ALSO COVERS INSURANCE AGENTS WHO SELL VARIABLE LIFE INSURANCE AND ANNUITIES BECAUSE THOSE PRODUCTS RESEMBLE SECURITIES CONSUMER ADVOCATES SAY MR KAMEN RATHER THAN TRYING TO HELP CONSUMERS APPEARS TO BE TRYING TO WARD OFF MORE SEVERE REGULATION ON THE INDUSTRY THE REAL PROBLEM ISN'T A LACK OF ENFORCEMENT MECHANISMS BUT THE CONFUSING NATURE OF INSURANCE PRODUCTS AND THE HIGH COMMISSIONS PAID TO AGENTS WHO SELL THEM SAID MARY GRIFFEN AN INSURANCE SPECIALIST WITH CONSUMERS UNION THE PUBLISHER OF CONSUMER REPORTS SHE SAID THE INDUSTRY NEEDS A COMPLETE OVERHAUL IT SOUNDS LIKE MET IS SAYING REGULATE THE SELLERS IT'S NOT OUR FAULT' SAID JAMES HUNT AN ACTUARY WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION BUT IT APPEARS THE COMPANY WAS CULPABLE TO A SIGNIFICANT DEGREE 9401100040 940110 METROPOLITAN BANCORP BUYBACK SEATTLE METROPOLITAN BANCORP SAID ITS BOARD AUTHORIZED THE BUYBACK OF UP TO 327317 SHARES OR ABOUT 10 OF THE COMPANY'S COMMON STOCK OUTSTANDING THE REPURCHASE WILL TAKE PLACE FROM TIME TO TIME IN OPENMARKET TRANSACTIONS DURING THE NEXT 12 MONTHS THE SHARES WILL BE HELD AS TREASURY STOCK AND CAN BE USED FOR GENERAL CORPORATE PURPOSES METROPOLITAN IS A SAVINGSANDLOAN HOLDING COMPANY 9401100039 940110 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ABN AMRO BANK NV 100 MILLION OF MEDIUMTERM NOTES DUE JAN 12 1996 PRICED AS 415S AT 99873 TO YIELD 4217 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 12 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CIGNA CORP 100 MILLION OF SENIOR NOTES DUE JAN 15 2006 PRICED AS 6375S AT 99325 TO YIELD 6457 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FEDERAL FARM CREDIT BANKS FUNDING CORP 75 MILLION OF MEDIUMTERM NOTES DUE JAN 16 1996 PRICED AT PAR TO YIELD 4125 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE BASIS POINT ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 350 MILLION OF BONDS DUE JAN 14 2004 PRICED AT PAR TO YIELD 627 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE JAN 14 2004 PRICED AS 625S AT 99889 TO YIELD 6265 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GREAT ATLANTIC & PACIFIC TEA CO 200 MILLION OF NOTES DUE JAN 15 2004 PRICED AT PAR TO YIELD 77 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 200 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1672 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 354 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 17 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 254 BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 796 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 207 YEARS UNDERWRITERS INCLUDE BEAR STEARNS & CO JP MORGAN SECURITIES INC PRUDENTIAL SECURITIES INC UBS SECURITIES INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP GOLDMAN SACHS & CO GREENWICH CAPITAL MARKETS INC KIDDER PEABODY & CO PAINEWEBBER INC AND MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 12 BILLION OF REMIC SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199415 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 199413 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 199417 IS BACKED BY FANNIE MAE 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 176 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199419 IS BACKED BY THE AGENCY'S STRIPS TRUST 254 WHICH IN TURN IS BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 796 AND WEIGHTED AVERAGE MATURITY OF 348 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES 199414 IS BACKED BY FANNIE MAE 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 749 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 355 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES 199418 IS BACKED BY FANNIE MAE 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199416 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES TRUST 252 PRINCIPALONLY SECURITIES WHICH IN TURN ARE BACKED BY FANNIE MAE 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 79 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 349 MONTHS ABBEY NATIONAL TREASURY SERVIES PLC UK PARENT 150 BILLION LIRE OF 77 EUROBONDS DUE FEB 8 1999 AT ISSUE PRICE 10173 VIA BANCA EUROMOBILIARE SPA BONDS YIELD 774 AFTER FEES OF 1875 POINTS GUARANTOR ABBEY NATIONAL PLC BARCLAYS BANK PLC UK 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 7 1996 AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 75 BASIS POINTS INTEREST ACCRUES ONLY ON DAYS WHEN THREEMONTH DOLLAR LIBOR FALLS WITHIN FOLLOWING RANGES 3 TO 4 IN FIRST SIX MONTHS 3 TO 4 3/4 IN SECOND SIX MONTHS 3 TO 55 IN THIRD SIX MONTHS AND 3 TO 6 IN LAST SIX MONTHS FEES 02 BRADFORD & BINGLEY BUILDING SOCIETY UK 150 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 0125 FEES UNDISCLOSED ELECTRICITE DE FRANCE FRANCE 250 MILLION OF 4625 EUROBONDS DUE FEB 7 1997 AT ISSUE PRICE 1009975 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 9981 TO YIELD 469 A MARGIN OF 10 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 KOMMUNINVEST I SVERIGE AB SWEDEN 75 MILLION SWISS FRANCS OF 375 PRIVATELY PLACED NOTES DUE MAR 9 1996 PRICED AT 1009 VIA CREDIT SUISSE KYOCERA CORP JAPAN 500 MILLION OF 1625 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE FEB 3 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD TERMS FIXED JAN 13 WARRANTS EXERCISABLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 25 FROM FEB 10 TO JAN 23 1998 FEES 225 LESS 015 POINT FOR LEAD MANAGER LANDESBANK SCHLESWIGHOLSTEIN GERMANY 100 MILLION SWISS FRANCS OF PUBLIC BONDS DUE FEB 15 1999 PRICED AT 101 COUPON 375 FIRST TWO YEARS THEREAFTER SIXMONTH SWISS FRANC LONDON INTERBANK OFFERED RATE LESS 25 FEES TWO NORDDEUTSCHE LANDESBANK LONDON BRANCH GERMAN PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 1 1996 AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS ONE INTEREST ACCRUES ONLY ON DAYS WHEN THREEMONTH LIBOR FALLS WITHIN FOLLOWING RANGES 3 TO 4 IN FIRST SIX MONTHS 3125 TO 475 IN SECOND SIX MONTHS 325 TO 55 IN THIRD SIX MONTHS 35 TO 6 IN LAST SIX MONTHS FEES 02 OSTERREICHISCHE KONTROLBANK AG AUSTRIAN AGENCY 100 MILLION MARKS OF NOTES DUE JAN 30 2001 AT ISSUE PRICE 10175 VIA MORGAN STANLEY GMBH REOFFERED AT 9955 COUPON 6 FIRST YEAR THEREAFTER COUPON IS 30625 MINUS FIVE TIMES FIVEYEAR MARK SWAP RATE GUARANTOR AUSTRIA FEES 25 RABOBANK NEDERLAND NETHERLANDS 100 MILLION OF EUROBONDS DUE FEB 1 1995 AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD IF SPREAD BETWEEN THREEMONTH MARK LIBOR AND DOLLAR LIBOR GREATER THAN ZERO COUPON 7 IF SPREAD EQUAL TO OR BELOW ZERO COUPON ZERO FEES UNDISCLOSED SOCIETE NATIONALE DES CHEMINS DE FER FRANCE 250 MILLION OF 4625 EUROBONDS DUE FEB 18 1997 AT ISSUE PRICE 1010075 VIA DAIWA EUROPE LTD REOFFERED AT 9982 TO YIELD 469 A MARGIN OF 10 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 TRINKAUS & BURKHARDT FINANCE NV AMSTERDAM GERMANPARENT 200 MILLION MARKS OF 5 EUROBONDS DUE FEB 2 1999 AT ISSUE PRICE 10065 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 531 AFTER FEES OF TWO GUARANTOR TRINKAUS & BURKHARDT KGAA 9401100038 940110 MUTUAL FUND SCORECARD / SECTOR 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 9401100037 940110 INTERNATIONAL DUTCH RETAIL SALES RISE AMSTERDAM RETAIL SALES ROSE A NOMINAL 36 IN THE NETHERLANDS IN NOVEMBER FROM A YEAR EARLIER WHILE REAL OR PRICEADJUSTED SALES ROSE A MORE MODEST 24 HELPED BY EXTRA SELLING DAYS IN THE MOST RECENT PERIOD BUT THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS SAID RETAIL SALES SHOWED A DECLINE OF ROUGHLY 3 IN NOVEMBER FROM THE PREVIOUS YEAR AFTER ADJUSTMENT FOR ADDITIONAL BUSINESS DAYS IN THE PERIOD MEANWHILE THE PRICE INDEX IN NOVEMBER REMAINED UNCHANGED FROM A MONTH EARLIER AT 107 9401100036 940110 CMS ENERGY UNIT'S LOAN CLOSES DEARBORN MICH CMS ENERGY CORP'S CMS GENERATION CO UNIT SAID CHASE MANHATTAN BANK CLOSED A TWOTRANCHE 2601 MILLION LOAN WITH AN ARGENTINIAN HYDROELECTRIC FACILITY IN WHICH CMS GENERATION HAS A 15 OWNERSHIP INTEREST THE COMPANY SAID THE BANK CLOSED THE 10YEAR LOAN WITH HIDROELECTRICA EL CHOCON A 1320MEGAWATT HYDROELECTRIC FACILITY IN ARGENTINA 9401100035 940110 CREDIT MARKETS INVESTORS HAVE A NEW TOOL FOR JUDGING ISSUERS' HEALTH CASHFLOW ADEQUACY' BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL WANT TO TAKE A COMPANY'S TEMPERATURE TO SEE HOW FLUSH IT IS ONE TOOL FOR THE JOB IS TO LOOK AT CASHFLOW ADEQUACY OR THE AMOUNT OF COMPANY EARNINGS AVAILABLE TO MEET FUTURE DEBT OBLIGATIONS AFTER PAYING TAXES AND INTEREST COSTS AND MAKING CAPITAL EXPENDITURES UNTIL NOW SUCH DETAILS ABOUT CASH FLOW HAVEN'T BEEN READILY AVAILABLE TO INVESTORS ALTHOUGH CREDITRATING AGENCIES HAVE USED SUCH MEASURES IN THEIR OVERALL ASSESSMENTS OF COMPANIES' FINANCIAL STRENGTH STARTING TODAY HOWEVER INVESTORS CAN BEGIN TO SEE FOR THEMSELVES HOW COMPANIES STACK UP ON THE BASIS OF CASH FLOW FITCH INVESTORS SERVICE INC A NEW YORK CREDITRATING AGENCY IS MAKING PUBLIC A NEW CASHFLOWBASED RATING SYSTEM TO HELP INVESTORS GAUGE THE DEPTH OF COMPANIES' POCKETS THE SERVICE WHICH COMPARES NET FREE CASH FLOW TO THE AVERAGE AMOUNT OF DEBT MATURING OVER THE NEXT FIVE YEARS PROVIDES A USEFUL EARLY WARNING SYSTEM FOR CORPORATE BOND INVESTORS WALL STREET BOND ANALYSTS AND RIVAL RATING AGENCIES CONCEDE BUT THEY CAUTION THAT IT IS ONLY ONE OF MANY FINANCIAL MEASURES THAT INVESTORS SHOULD CONSIDER IT'S A TOOL AN INVESTOR MIGHT USE BUT HARDLY THE MAGIC NUMBER SAYS WILLIAM WETREICH A DIRECTOR OF MCGRAWHILL INC'S STANDARD & POOR'S CORP A COMPETITOR OF FITCH INITIALLY FITCH WILL ONLY OFFER CASHFLOW DATA FOR COMPANIES RANKED SINGLEA IN ITS EXISTING CREDIT RATINGS THE NEW SERVICE IS MOST RELEVANT TO THIS GROUP FITCH SAYS BECAUSE THOSE COMPANIES ARE ON THE DIVIDING LINE BETWEEN INVESTMENTGRADE CREDITS AND JUNK THE CASHFLOW RATINGS SHOULD HELP INVESTORS SEPARATE THE SAFE BETS FROM THE LONG SHOTS AMONG SINGLEA RATED BONDS FITCH SAYS INDEED THE WIDE DISPARITY IN RANKINGS AMONG SINGLEA COMPANIES SHOWS THAT INVESTORS NEED ADDED DATA TO MAKE BETTER JUDGMENTS ABOUT THOSE BONDS SAYS ROBERT J GROSSMAN AN EXECUTIVE VICE PRESIDENT AT FITCH A RATING OF 1 UNDER FITCH'S NEW RANKING MEANS THAT A COMPANY GENERATES JUST ENOUGH CASH FLOW EACH YEAR TO COVER ITS MATURING DEBTS HIGH POSITIVE RANKINGS INDICATE THE COMPANY WILL HAVE CONTINUING GOOD CREDIT QUALITY AND DEBT COVERAGE AND THE ABILITY TO BOOST CAPITAL SPENDING WITHOUT RAISING DEBT OR EQUITY OUTSIDE SAYS THOMAS W HOENS A FITCH ANALYST BY CONTRAST A NEGATIVE RATING MEANS A COMPANY MAY HAVE TO RAISE MORE MONEY EITHER THROUGH BORROWING OR ISSUING STOCK TO SERVICE ITS DEBTS A NEGATIVE RATING DOESN'T NECESSARILY MEAN THE COMPANY IS ON THE ROCKS A LOW RANKING MAY MERELY INDICATE THAT THE COMPANY'S INDUSTRY IS AT THE BOTTOM OF A BUSINESS CYCLE OR THAT IT HAS COMPLETED MAJOR FINANCINGS NOTES KEITH B FOLEY A FITCH ANALYST FOR EXAMPLE CASH RESERVES AT UNION CAMP CORP A PAPER WOOD AND CHEMICALS CONCERN AND THE LOWESTRANKED COMPANY BY FITCH'S NEW RATINGS HAVE BEEN DEPLETED BOTH BY A CYCLICAL SLUMP IN THE PAPER BUSINESS AND BY MAJOR CAPITAL SPENDING IN RECENT YEARS WE SPENT 14 BILLION TO EXPAND PAPERMAKING CAPACITY 25 FROM 1989 TO 1991 NOTES TIMOTHY MCKENNA UNION CAMP'S DIRECTOR OF INVESTOR RELATIONS DECREASING SPENDING NEEDS COULD BUOY THE COMPANY'S CASH FLOW IN THE FUTURE WHAT'S MORE PRICES OF LINERBOARD A MAJOR UNION CAMP PRODUCT WILL RISE EFFECTIVE FEB 1 HELPING THE COMPANY BUILD UP MORE CASH FOR ITS DEBT COVERAGE MR MCKENNA SAYS A SPOKESMAN FOR WESTVACO CORP ANOTHER PAPER PRODUCER WITH INADEQUATE CASH FLOW BY FITCH'S MEASURE LIKEWISE SAYS THAT THE COMPANY IS AT THE END OF A MAJOR INVESTMENT PROGRAM AND WE DO EXPECT OUR CAPITAL EXPENDITURES TO DECLINE GENERALLY OVER THE NEXT FEW YEARS OTHER COMPANIES RANKED LOW BY FITCH'S NEW SERVICE ALSO SEE THEIR CASHFLOW ADEQUACY RISING IN THE FUTURE FOR INSTANCE SAFETYKLEEN CORP SOUGHT TO REDUCE ANNUAL CAPITAL SPENDING TO ABOUT 100 MILLION IN 1993 AND PLANS TO KEEP IT AT THAT LEVEL THIS YEAR TO HELP GENERATE FUNDS FOR DEBT SERVICE SAYS LAURENCE RUDNICK TREASURER OF THE ELGIN ILL RECYCLER OF AUTO AND INDUSTRIAL FLUIDS SAFETYKLEEN'S ANNUAL CAPITAL SPENDING WAS 143 MILLION IN 1992 AND 168 MILLION IN 1991 MEANWHILE SPOKESMEN FOR KERRMCGEE CORP A PETROLEUM PRODUCER AND WILLAMETTE INDUSTRIES INC A PAPER MAKER DECLINED TO COMMENT ON THEIR COMPANIES' RANKINGS UNDER THE NEW FITCH RANKINGS BOND ANALYSTS AT MAJOR WALL STREET FIRMS SAY THEY RELY ON SIMILAR CASHFLOW GAUGES IN PICKING BONDS BUT NOT ALL CASHFLOW RATIOS DIG AS DEEP AS FITCH'S SAYS MAX HOLMES A HIGHYIELD STRATEGIST AT SALOMON INC FITCH'S RATINGS MAY BRING NEW INFORMATION TO THE MARKET AND HELP IMPROVE DISCRIMINATION WITHIN A RATING CLASS SAYS ROBERT E PHELAN A MANAGING DIRECTOR AT NOMURA SECURITIES INC AND A FORMER FITCH EXECUTIVE BUT SOME ANALYSTS FEEL THAT COMPANIES' CASHFLOW ADEQUACY IS ALREADY REFLECTED IN THE MARKET PRICE OF THEIR BONDS IT'S SIMILAR TO WHAT ANY GOOD CORPORATE BOND ANALYST WOULD ALREADY BE DOING SAYS KATHERINE MONTGOMERY MANAGER OF HIGHYIELD RESEARCH AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP RELIEVED BY DATA SHOWING THE ECONOMY WASN'T GROWING AS FAST AS SOME HAD FEARED INVESTORS POURED BACK INTO THE US TREASURY DEBT MARKET FRIDAY PRODUCING THE BIGGEST DAILY JUMP IN MONTHS THE BENCHMARK 30YEAR TREASURY BOND ROSE 1 5/8 POINTS OR 1625 FOR A BOND WITH A 1000 FACE VALUE TO 100 9/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 622 FROM 634 ON THURSDAY OTHER MATURITIES ALSO ROSE SHARPLY IN PRICE THE 10YEAR NOTE FOR EXAMPLE ROSE MORE THAN A POINT TO 100 21/32 TO YIELD 564 DOWN FROM 579 THE LABOR DEPARTMENT REPORTED THAT NONFARM PAYROLL EMPLOYMENT ROSE 183000 DURING DECEMBER BELOW MOST WALL STREET FORECASTS WHICH HAD CENTERED ON A RISE OF AT LEAST 225000 THE MARKET REACTED VERY POSITIVELY TO WHAT WAS CONSIDERED TO BE A WEAKERTHANEXPECTED EMPLOYMENT REPORT THAT SUGGESTED THERE WAS NO ACCELERATION IN THE JOB MARKET SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES WHILE THE NONFARM PAYROLLS INCREASE WAS SMALLER THAN FORECASTS BY MOST WALL STREET ECONOMISTS IT WAS RIGHT IN LINE WITH WHAT HAS BECOME A NOTORIOUS ESTIMATE MADE THURSDAY BY SECRETARY OF LABOR ROBERT REICH LABOR DEPARTMENT OFFICIALS STRONGLY DENIED THAT HIS ESTIMATE OF A 160000TO200000 INCREASE IN PAYROLLS WAS ANYTHING OTHER THAN AN EDUCATED GUESS STILL THERE WAS CONTINUED WIDESPREAD SPECULATION ON WALL STREET THAT MR REICH HAD AT LEAST SOME KNOWLEDGE IN ADVANCE OF WHAT THE DATA WOULD SHOW TRADERS SAID THE TREASURY MARKET ENJOYED A NEARLY NONSTOP STREAM OF BUYING FROM BOTH INVESTORS AND THE DEALER COMMUNITY AFTER THE EMPLOYMENT DATA WERE RELEASED CONTRIBUTING TO THE RALLY WAS A WALL STREET JOURNAL REPORT FRIDAY INDICATING THAT THE FED'S POLICYMAKING OPEN MARKET COMMITTEE HADN'T VOTED TO TILT TOWARD RAISING RATES AT ITS LAST MEETING AS MANY ECONOMISTS HAD BELIEVED WITHOUT THE THREAT OF ACCELERATING GROWTH OR FEARS OF A NEARTERM FED TIGHTENING INVESTORS FLOCKED TO THE BOND MARKET THEY WERE ESPECIALLY ACTIVE IN SHORTTERM AND INTERMEDIATETERM SECURITIES A SECTOR OF THE MARKET THEY HAD MOST RECENTLY BEEN AVOIDING 9401100034 940110 MUTUAL FUNDS FUNDS TIGHTEN TRADING RULES FOR MANAGERS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESCO FUNDS GROUP'S FIRING OF STAR PORTFOLIO MANAGER JOHN KAWESKE IS SHAKING UP THE MUTUALFUND INDUSTRY FUND COMPANIES ARE ANXIOUS TO MAKE SURE THEIR MANAGERS DON'T WIND UP LIKE MR KAWESKE WHO WAS OUSTED BY INVESCO LAST WEEK FOR ALLEGEDLY FAILING TO TELL HIS EMPLOYER ABOUT A NUMBER OF PERSONAL STOCK TRADES IN THE WAKE OF THIS UNUSUAL CASE SOME MUTUALFUND COMPANIES ARE BEEFING UP THEIR INTERNAL TRADINGDISCLOSURE RULES OTHERS ARE PRODDING EMPLOYEES TO FOLLOW THE EXISTING RULES STRICTLY BUT WHAT'S ALREADY CLEAR IS THAT MR KAWESKE WHOSE TRADES NOW ARE BEING SCRUTINIZED BY THE SECURITIES AND EXCHANGE COMMISSION IS FAR FROM THE ONLY FUND MANAGER WHO REGULARLY TRADES FOR HIS OWN ACCOUNT OF EIGHT FUND COMPANIES CONTACTED FRIDAY ONLY ONE SAID THAT IT HAD AN OUTRIGHT BAN ON FUND MANAGERS OWNING INDIVIDUAL STOCKS THEMSELVES THE SEC REQUIRES MUTUALFUND COMPANIES TO KEEP TRACK OF SUCH PERSONAL TRADES BY FUND MANAGERS CHECKING TO MAKE SURE THAT THE TRADES AREN'T INAPPROPRIATE SOMETIMES COMPANY OFFICIALS SAY THEY HAVE TO KEEP PRODDING THE EMPLOYEES THROUGH MEMOS OR PHONE CALLS TO KEEP ON TURNING IN THE REQUIRED REPORTS FIRING DOESN'T HAPPEN IF SOMEBODY JUST FORGETS A COUPLE OF TIMES SAYS ONE SEC STAFF OFFICIAL IN WASHINGTON BUT IF SOMEBODY IS BLATANTLY AVOIDING THEIR RESPONSIBILITIES TO REPORT PERSONAL TRANSACTIONS THEN THE COMPANY HAS TO TAKE DRASTIC ACTIONS THE SEC OFFICIAL WOULDN'T DISCUSS THE INVESCO MATTER SPECIFICALLY ALTHOUGH PEOPLE CLOSE TO THE CASE HAVE SAID THE AGENCY'S DENVER OFFICE IS PROBING IT IN THE WAKE OF LAST WEEK'S UPROAR AN UNRELATED FIRM IN DENVER BERGER ASSOCIATES IS PREPARING TO FORBID PORTFOLIO MANAGERS FROM OWNING INDIVIDUAL STOCKS FOR PERSONAL ACCOUNTS THIS HAS BEEN OUR PRACTICE AND NOW WE ARE GOING TO MAKE IT A FORMAL POLICY SAYS RODNEY LINAFELTER VICE PRESIDENT OF PORTFOLIO MANAGMENT AND COMANAGER OF TWO FUNDS AT BERGER ASSOCIATES IT WOULDN'T SURPRISE ME IF OTHER COMPANIES START TIGHTENING MR LINAFELTER ADDS I KNOW I DON'T WANT OUR PEOPLE FOCUSING ON OTHER INVESTMENTS THAN THOSE IN THE FUNDS AT BALTIMORE'S T ROWE PRICE ASSOCIATES EMPLOYEES LAST WEEK RECEIVED COPIES OF NEWSPAPER ARTICLES DESCRIBING MR KAWESKE'S DISMISSAL ALONG WITH A STATEMENT STRESSING THE IMPORTANCE OF T ROWE'S CODE OF CONDUCT SAYS HENRY HOPKINS ITS CHIEF LEGAL COUNSEL BASICALLY WHEN SOMETHING LIKE THIS HAPPENS WE REMIND EVERYONE THAT IF YOU ARE BAD THIS WILL HAPPEN TO YOU HE SAYS WE AREN'T CHANGING ANY OF OUR PROCEDURES BUT WE REINFORCE THE SERIOUSNESS OF THE SITUATION MR HOPKINS ADDS ON OCCASION PORTFOLIO MANAGERS HAVE RECEIVED A DEFICIENCY MEMO ABOUT THEIR LATENESS IN FILING NO EMPLOYEES HAVE BEEN FINED OR FIRED AS A RESULT OF PERSONAL TRADES HE SAYS EVEN OUR RIGOROUS RULES WON'T ELIMINATE ALL POSSIBILITY OF A BAD APPLE HE SAYS BUT WE'VE BEEN LUCKY SO FAR IN DISMISSING MR KAWESKE LAST WEEK INVESCO SAID HE HADN'T GOTTEN APPROVAL FOR OR DIDN'T REPORT CONFIRMATION OF SOME 10 TO 20 TRADES IN HIS PERSONAL ACCOUNT INVESCO CONTENDS THE FAILURE TO REPORT WAS A VIOLATION OF THE COMPANY'S CODE OF CONDUCT INVESCO CHAIRMAN DAN HESSER SAID LAST WEEK THAT COMPANY OFFICIALS REPEATEDLY ASKED MR KAWESKE TO FOLLOW THE PROCEDURE AND HAD EVEN CONSIDERED PUTTING HIM ON PROBATION BEFORE DECIDING TO FIRE HIM INVESCO FUNDS GROUP OF DENVER WHICH MANAGES 10 BILLION IS OWNED BY UNITED KINGDOMBASED INVESCO PLC AN INVESTMENT MANAGER WITH 64 BILLION IN ASSETS IN AN INTERVIEW MR KAWESKE SAID I GOT SOME MEMOS REGARDING PERSONAL TRANSACTIONS BUT HE SAID HE NEVER HAD ANY INDICATION THAT HIS JOB WAS ON THE LINE IF YOU TALK TO ANY PORTFOLIO MANAGER ABOUT THE SITUATION YOU'LL FIND TOTAL DISBELIEF THAT TECHNICAL VIOLATIONS OF THIS SORT LED TO THE SEVERITY OF THE ACTION MR KAWESKE ADDS IT DOESN'T MAKE ANY SENSE TO THE INVESTMENT COMMUNITY SO WHAT CAN AND CAN'T MUTUALFUND MANAGERS DO WHEN IT COMES TO PERSONAL TRADING SECURITIES FIRMS INCLUDING FUND ADVISERS ARE REQUIRED BY REGULATORS TO HAVE A CODE OF CONDUCT TO GUARD AGAINST ILLEGAL USE OF INSIDE INFORMATION AND FRAUDULENT PRACTICES INDIVIDUALS ARE REQUIRED TO REPORT WITHIN 10 DAYS AFTER THE QUARTER IN WHICH A PERSONAL TRANSACTION OCCURRED MANY MUTUALFUND COMPANIES GO FURTHER IMPOSING MONTHLY REQUIREMENTS OR REQUIRING SPECIFIC CLEARANCE BEFORE EACH TRANSACTION IN ADDITION TO THE CONFIRMATION SLIPS THAT FOLLOW LATER CODES OF CONDUCT ARE DESIGNED TO PREVENT ABUSES SUCH AS AN EMPLOYEE FRONTRUNNING OR BUYING A STOCK BEFORE THE FUND BEGINS ITS OWN BUYING MUTUAL FUNDS OFTEN BUY IN SUCH LARGE QUANTITIES THAT THEY BOOST A STOCK'S PRICE ANY USE OF INFORMATION ABOUT A FUND'S TRADING ACTIVITIES FOR PERSONAL GAIN OR FOR A BENEFICIARY SUCH AS A SPOUSE OR CHILD IS BARRED AS LONG AS THE CODE IS OBEYED IT USUALLY ISN'T CONSIDERED A PROBLEM FOR FUND MANAGERS TO OWN STOCKS INDEED SOME INVESTORS SAY THEY LIKE THE IDEA THAT FUND MANAGERS ARE PUTTING THEIR MONEY WHERE THEIR MOUTHS ARE TAKE RICHARD WEISS A WELLKNOWN MUTUALFUND MANAGER AT STRONGCORNELIUSON CAPITAL MANAGEMENT IN MILWAUKEE MR WEISS SAYS HE OWNS ABOUT NINE STOCKS THAT ARE ALSO IN THE TWO FUNDS HE MANAGES AS WELL AS MORE THAN 20 STOCKS THAT AREN'T IN HIS FUNDS I FIGURE STICK WITH WHAT YOU KNOW MR WEISS SAYS I USED TO BUY SEPARATE STOCKS FROM WHAT WAS IN MY FUND AND IT WAS MOSTLY GARBAGE I DECIDED IF I WAS GOOD AT MAKING MONEY FOR OTHER PEOPLE I COULD FOLLOW MY OWN ADVICE AND BUY THE SAME STOCKS MR WEISS SAYS HE FOLLOWS STRONG'S RULES OF GETTING CLEARANCE BEFORE ALL HIS TRADES THROUGH THE TRADING DESK AND DOESN'T BUY OR SELL A STOCK BEFORE THE FUND DOES THE MUTUALFUND COMPANY FIDELITY INVESTMENTS IN BOSTON ALSO ALLOWS ITS FUND MANAGERS TO OWN STOCKS THAT ARE IN THEIR FUNDS BUT FIDELITY SAYS IT CLOSELY MONITORS ALL CLIENT AND PERSONAL TRADES MADE BY EMPLOYEES THROUGH A COMPUTER SYSTEM ONE FIDELITY RULE TARGETS PORTFOLIO MANAGERS IF THE FUND THEY MANAGE IS BUYING OR SELLING A CERTAIN STOCK THEY CAN'T BUY OR SELL THAT SAME STOCK FOR THEIR OWN ACCOUNTS WITHIN A CERTAIN NUMBER OF DAYS OF THE FUND'S TRADING SAYS ROBERT POZEN FIDELITY'S GENERAL COUNSEL A MANAGER PLANNING A TRADE WOULD CALL THE FIDELITY TRADING DESK TO SEE IF THE FIRM WAS ACTIVE IN THE STOCK AND GET CLEARANCE FIDELITY SAYS IT PAYS SPECIAL HEED TO TRANSACTIONS INVOLVING PRIVATE PLACEMENTS AND INITIAL PUBLIC OFFERINGS HE SAYS THESE ARE FURTHER SCRUTINIZED THROUGH SPECIAL RULES 9401100033 940110 YOUNG GUNS A SECOND GENERATION OF POLITICAL HANDLERS OUTDUELS FOREBEARS SELFSTYLED BARBARIANS' USE NEW MEDIA SKILLS TO RUN FASTER MEANER RACES WE'RE ALL TECHNOCRATS NOW' BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WE USED TO CREATE HEROES SIGHS BOB GOODMAN A VETERAN MEDIA CONSULTANT FOR REPUBLICAN POLITICAL CANDIDATES NOT ANY MORE DAD SAYS HIS SON ADAM A SECONDGENERATION MEDIA CONSULTANT NOW WORKING WITH HIS FATHER AND TEACHING THE OLD FELLOW SOME NEW TRICKS WE'RE ALL TECHNOCRATS NOW ADAM GOODMAN SAYS REACTING TO THE OVERNIGHT POLLS FIGHTING AGAINST SHORTER AND SHORTER ATTENTION SPANS OUT THERE AMONG THE VOTERS JUST LIKE SO MANY OTHERS CAMPAIGN HANDLERS ARE TAKING A WILD RIDE DOWN THE INFORMATION HIGHWAY AND IT IS CHANGING THE WAY ELECTIONS ARE WON AND LOST SUCCESSFUL CAMPAIGNS IN THE NEW MEDIA AGE ARE MEANER FASTER LIVELIER AND THEY ARE ALL DRIVEN BY DATA RIGHT NOW THE NATION'S TOP HANDLERS ARE SHOWING OFF THEIR DEMONSTRATION TAPES NEVER A LOSING RACE IN THE LOT AND BOASTING ABOUT KILLER POLLS AS THEY LINE UP TO TAKE THEIR CUT OF THE MILLIONS OF DOLLARS THAT WILL FLOW INTO ABOUT 70 HIGHSPENDING STATEWIDE CAMPAIGNS THIS YEAR LOST IN THE RUSH TO WIN SOMETIMES AT ANY COST IS THE QUAINT NOTION OF A THOUGHTFUL CANDIDATE WILLING TO TAKE TIME TO EXPLAIN SLOWLY AND WISELY HIS OR HER POSITIONS ON MAJOR POLICY ISSUES WHAT COUNTS ARE TRACKING POLLS FOCUS GROUPS DIAL GROUPS WAVE FRONTS AND DIGITALTV EDITING MACHINES AND A CANDIDATE CAPABLE OF RAISING THE HUGE AMOUNTS OF CASH NEEDED TO PAY FOR THE TECHNOLOGY SOME OF THE FIRSTGENERATION CONSULTANTS HAVE PULLED OFF THE ROAD UNWILLING TO MAINTAIN THE PACE REPUBLICAN ROGER AILES GEORGE BUSH'S HANDLER HAS RETURNED TO HIS FIRST LOVE ENTERTAINMENT GOP POLLSTER LANCE TARRANCE SEMIRETIRED IS HELPING THE GALLUP ORGANIZATION SET UP A POLL IN CHINA OTHERS MAY BE SLOWLY DISENGAGING CRITICS SAY DEMOCRAT ROBERT SQUIER 59 WORKS TOO HARD ON HIS TAN AND SPENDS TOO MUCH TIME THINKING UP SOUND BITES FOR HIS APPEARANCES ON THE TODAY SHOW HIS FIRM HAS LOST SEVERAL RACES RECENTLY MR SQUIER SAYS HE IS AS INVOLVED AS EVER BUT THESE DAYS IS MORE SELECTIVE ABOUT WHICH RACES TO GET INVOLVED IN A NEW GENERATION IS TAKING OVER MR SQUIER'S OWN SON MARK 33 WHO GOT INTO THE BUSINESS THROUGH HIS FATHER'S FIRM IS A LEADING EXAMPLE HE IS ONE OF THE NEW SELFSTYLED BARBARIANS IN THE MEDIA CONSULTING FIELD WORKING WITH PARTNERS JOE TRIPPI 36 AND STEVE MCMAHON 33 IN A FIRM THAT DRAWS HEAVILY ON THE HIGHTECH ARSENAL I BET BOB SQUIER DOESN'T EVEN KNOW WHAT A WAVE FRONT IS SAYS MR MCMAHON FOR THE RECORD IT IS A COMPUTERIZED PROGRAM THE TRIPPIMCMAHONSQUIER FIRM FIRST USED IN A WIDELY ADMIRED TV SPOT FOR REP SAM GIBBONS IN 1992 IN THE SPOT THE SCREEN FILLS WITH THOUSANDS OF SWOOPING AND SWIRLING MARBLESIZED DOTS AS THE DOTS SWIRL AROUND THE ANNOUNCER'S VOICE TALKS ABOUT WHAT AN IDEAL CONGRESSMAN SHOULD BELIEVE IN AS THE DOTS CONVERGE TO FORM A PORTRAIT OF MR GIBBONS THE VOICE SAYS THE CLOSER YOU LOOK THE MORE YOU'LL SEE SAM GIBBONS AS YOUR KIND OF CONGRESSMAN PRETTY EYECATCHING WASN'T IT SAYS THE VETERAN CONGRESSMAN THERE'S AN IRONY HERE BOB SQUIER USED TO PRODUCE REP GIBBONS'S ADS BUT THE 73YEAROLD FLORIDA DEMOCRAT SWITCHED TO THE YOUNGER SQUIER'S FIRM THE OLDER GUYS IN THE CONSULTING BUSINESS LIKE BEING MEMBERS OF THE CLUB SAYS MR TRIPPI THEY LIKE TO HANG OUT IN THE SENATE CLOAKROOM CHIMES IN MR MCMAHON WE DON'T WANT TO BELONG TO ANY CLUBS SAYS MARK SQUIER IT'S A YOUNG MAN'S GAME AGREES GREG STEVENS A 45YEAROLD HANDLER TRAINED BY MR AILES WHO WHOMPED THE ELDER MR SQUIER'S FIRM IN A CLASSIC STRUGGLE BETWEEN FIRST AND SECONDGENERATION MEDIA CONSULTANTS IN LAST NOVEMBER'S GOVERNOR'S RACE IN VIRGINIA THE GENERATIONAL CHANGE IS PERSONIFIED BY THE TWO GOODMANS THE 65YEAROLD BOB GOODMAN BEGAN HIS POLITICAL CAREER AS MEDIA CONSULTANT FOR SPIRO AGNEW'S SUCCESSFUL CAMPAIGN FOR GOVERNOR OF MARYLAND IN 1966 HE HIRED 45 MUSICIANS AND A CHORUS TO BACK UP THE TV SPOT WHICH FEATURED THE WORDS MY KIND OF MAN TED AGNEW IS TO THE TUNE OF MY KIND OF TOWN CHICAGO IS IN A FAMOUS COMMERCIAL FOR GEORGE BUSH WHEN HE WAS RUNNING FOR THE REPUBLICAN PRESIDENTIAL NOMINATION IN 1980 MR GOODMAN PICTURED HIS CANDIDATE AS AN EAGLE SWOOPING INTO NEW HAMPSHIRE IN HIS CHARTERED AIRPLANE WITH A FULL BAND BLAZING AWAY ON THE SOUND TRACK MR BUSH LOST BUT HE LOVED THE AD NOW SAYS MR GOODMAN THEY'D CALL THOSE COMMERCIALS WARM AND FUZZY AND PEOPLE DON'T WANT THEM ANY MORE AND AS FOR THAT BIGBAND MUSIC THESE DAYS YOU CAN CREATE ALL THAT MUSIC WITH ONE ARRANGER AND A SYNTHESIZER ENTER YOUNG ADAM GOODMAN WHO IS 38 AND WHO DOESN'T THINK MUCH OF WARM AND FUZZY CAMPAIGNS WHETHER IT IS FOR THE PRESIDENCY OR FOR COUNTY COMMISSIONER LAST FALL THE GOODMANS WERE INVOLVED IN A HIGHPRICED RACE FOR A STATEWIDE COMMONWEALTH COURT JUDGESHIP IN PENNSYLVANIA THEIR CANDIDATE WAS SANDRA SCHULTZ NEWMAN A LAWYER FROM THE PHILADELPHIA SUBURBS WITH NO POLITICAL EXPERIENCE THE DEMOCRATIC CANDIDATE WAS JOSEPH MISTICK A LAWYER FROM PITTSBURGH WHO HAD WORKED IN THE MAYOR'S OFFICE AND HAD BEEN A MEMBER OF BOTH THE ZONING AND PLANNING PANELS THERE ADAM GOODMAN HIRED RESEARCHERS TO DIG INTO MR MISTICK'S RECORD AND THEY CAME UP WITH A SIXYEAROLD STORY FROM THE NOWDEFUNCT PITTSBURGH PRESS SUGGESTING THAT MR MISTICK AS A MEMBER OF THE ZONING BOARD RULED AS MANY AS 40 TIMES IN FAVOR OF HIS BUSINESS PARTNER'S INTERESTS THEY PREPARED WHAT BOB GOODMAN CALLS THE NUKE A 30SECOND TV COMMERCIAL CHARGING MR MISTICK WITH IMPROPRIETY IN THOSE ZONING CASES THEY HELD ONTO IT UNTIL THE FINAL HOURS OF THE CAMPAIGN WHEN ADAM GOODMAN LEFT TOWN TO ATTEND A WEDDING OF AN OLD FRIEND I TOLD DAD IT'S UP TO YOU' HE SAYS ON FRIDAY SAYS BOB GOODMAN I MASHED THE BUTTON THE NUKE WAS LAUNCHED AND THE MISTICK CAMPAIGN WITH NO TIME TO RESPOND TO THE AD PLUNGED TO THE GROUND IN FLAMES MR MISTICK IN DEFEAT DENIES HE DID ANYTHING WRONG AS A MEMBER OF THE ZONING PANEL SO MUCH FOR WARM AND FUZZY I NEVER REALLY WANTED TO TARGET ANYONE SAYS BOB GOODMAN A LITTLE WISTFULLY I ALWAYS WANTED EVERYONE TO LOVE MY CANDIDATE BUT HE SMILES AT THE RECOLLECTION OF LAUNCHING THAT ANTIMISTICK MISSILE DAD WOULDN'T HAVE DONE IT 10 YEARS AGO SAYS ADAM GOODMAN WITH FILIAL PRIDE THE VIRGINIA GOVERNOR'S RACE LAST NOVEMBER WHICH PITTED DEMOCRAT MARY SUE TERRY A FORMER ATTORNEY GENERAL AGAINST REPUBLICAN GEORGE ALLEN BRIEFLY A MEMBER OF CONGRESS AND SON OF THE LATE WASHINGTON REDSKINS FOOTBALL COACH WAS JUST AS NASTY AND A LOT MORE DATADRIVEN BOB SQUIER'S FIRM HANDLED MS TERRY'S MEDIA WITH PARTNER BILL KNAPP DOING MOST OF THE WORK HARRISON HICKMAN WAS THE POLLSTER THEY BEGAN THE CAMPAIGN WAY AHEAD OF MR ALLEN IN POINTS AND IN CASH AND MOST OBSERVERS THOUGHT IT WOULD BE A WALKAWAY BUT MR HICKMAN SENSED SOMETHING WAS WRONG WHEN HE PUT TOGETHER A DIAL GROUP TO ANALYZE VOTERS' REACTION TO THE FIRST DEBATE BETWEEN THE TWO CANDIDATES EACH MEMBER OF THE GROUP WAS GIVEN A DIAL ON WHICH TO REGISTER INSTANT APPROVAL OR DISAPPROVAL OF ANYTHING EITHER CANDIDATE SAID MR HICKMAN STILL HAS THE TAPE OF THE SESSION WHEN MS TERRY APPEARS ON THE SCREEN TO EXPLAIN HER VIEWS AND IDEAS THE LINE ON THE CHART THAT OVERLAYS THE PICTURE BARELY MOVES UP OR DOWN BUT WHEN MR ALLEN GETS HIS TURN THE LINE LEAPS ONE MOMENT ALL THE WAY TO THE TOP OF THE SCREEN PLUNGES THE NEXT ALL THE WAY TO THE BOTTOM THESE PEOPLE JUST DIDN'T REACT TO ANYTHING MARY SUE WAS SAYING SAYS MR HICKMAN AND MR HICKMAN WORRIED QUITE PROPERLY AS IT TURNED OUT THAT GEORGE ALLEN WOULD STOP SAYING THE THINGS THAT SENT THE LINE DOWN THE CHART AND CONCENTRATE ON THE THINGS THAT SENT THE LINE UP THE CHART MEANWHILE REPUBLICAN TRACKING POLLS SHOWED THEM SOMETHING THEY HAD NEVER SEEN BEFORE MS TERRY'S CAMPAIGN WAS GOING DOWNHILL AT A TIME WHEN HER TV SPOTS WERE RUNNING UNOPPOSED ALL OVER VIRGINIA TO MAKE THINGS WORSE MS TERRY CAME ACROSS AS COLD AND IMPERSONAL IN HER OWN TV ADS ALL OF THEM FILMED BY THE LEGENDARY MR SQUIER WHO HAS ALWAYS PRIDED HIMSELF ON HIS CAMERA WORK THE ADS SHOWED A STIFF MS TERRY WALKING AND TALKING AND SHE SEEMED UNCOMFORTABLE DOING BOTH MARY SUE TERRY'S HANDLERS DID HER A GREAT INJUSTICE GLOATS MR STEVENS THEY NEVER DID ANYTHING TO TELL THE VOTERS WHO SHE WAS THEY NEVER TOLD THE VOTERS SHE WAS A SELFMADE WOMAN FROM RURAL PATRICK COUNTY THEY NEVER TOLD ANYONE ABOUT HER RECORD AS ATTORNEY GENERAL THAT WAS OUR BIGGEST MISTAKE MR HICKMAN ADMITS MR SQUIER SAYS HE COULDN'T DEVOTE ALL HIS ENERGY AND IT IS UNDIMINISHED HE ADDS TO THE TERRY CAMPAIGN BECAUSE HE WAS WORKING AT THE SAME TIME ON A PARLIAMENTARY ELECTION IN BERMUDA WHERE HIS CLIENT THE UNITED BERMUDA PARTY WON BY FOUR SEATS HE SAYS HIS PARTNER MR KNAPP WAS CHIEFLY RESPONSIBLE FOR STRATEGY IN THE VIRGINIA RACE MR KNAPP IS MORE GENEROUS THAN MR STEVENS THEY DID A GOOD JOB HE SAYS WE DID A GOOD JOB TOO UNDER VERY DIFFICULT CIRCUMSTANCES HE SAYS IT IS SOPHOMORIC FOR CONSULTANTS TO CRITICIZE EACH OTHER'S WORK MAYBE MR SQUIER CONCLUDES SARCASTICALLY GREG STEVENS WILL BE A LITTLE MORE MODEST AFTER HE SUFFERS HIS FIRST DEFEAT YET THE UNKIND WHISPERING IN WASHINGTON IS THAT PERHAPS MS TERRY HIRED THE WRONG SQUIER THE YOUNGER SQUIER WON'T PUBLICLY CRITICIZE HIS FATHER'S WORK BUT HE AND HIS PARTNERS LEAVE NO DOUBT THEY WOULD HAVE TRIED TO MAKE HER ADS TOUGHER AND LIVELIER MARK SQUIER IS A HARDWORKING HANDLER WHO UNDERSTANDS ALL THE NEW TECHNOLOGY AND HE DOESN'T DO ADS THAT SHOW HIS CANDIDATE BEING COLD AND UNCOMFORTABLE HIS FIRM TRIPPI MCMAHON & SQUIER MADE ITS MARK A FEW YEARS AGO WITH A FEROCIOUS AD THAT ATTACKED ITS CLIENT'S OPPONENT FOR HAVING SAID THAT MAYBE WOMEN SHOULD BE JAILED FOR HAVING ABORTIONS THE SPOT SHOWED UNHAPPY YOUNG WOMEN IN JAIL CELLS AND AS THE CAMERA PANNED DOWN THE ROW THE STATUE OF LIBERTY IN A JAIL CELL EXPLOSIVE ADMITS MR TRIPPI BUT HE TESTED THE ADS WITH FOCUS GROUPS THE FOCUS FOLKS LIKED IT AND THE FIRM'S CANDIDATE WON THE TRIPPIMCMAHONSQUIER CLIENT IN NEW YORK CITY LAST NOVEMBER WAS CONSUMER ADVOCATE MARK GREEN RUNNING FOR A NEW OFFICE CALLED PUBLIC ADVOCATE TO VETERANS IN THE MEDIACONSULTING BUSINESS THE SPOTS LOOK ODD AND CONTRIVED BUT THEY ARE PROBABLY THE WAVE OF THE FUTURE GREEN ARROWS KEEP SHOWING UP ON THE SCREEN POINTING AT MR GREEN'S FACE THERE IS EVEN A LITTLE STAGED DRAMA IN ONE OF THE ADS MR GREEN STANDING IN A DOORWAY REPORTS TO RALPH NADER SEATED AT A DESK AS THOUGH HE MIGHT BE A PROFESSOR ON WHAT HE'S BEEN DOING TO HELP NEW YORK CONSUMERS YOU'RE READY SAYS MR NADER AFTER THE REPORT IS RENDERED MR TRIPPI CONCEDES THE FIRSTGENERATION PRACTITIONERS DON'T UNDERSTAND THE GREEN SPOT YET IT WORKED MR GREEN WON HANDILY THE OLDER GENERATION IS HOPELESSLY OUT OF TOUCH MR TRIPPI SAYS WE GREW UP WITH MTV THE OLD GUYS LISTENED TO RADIO AND MAYBE WATCHED A LITTLE BLACKANDWHITE TV 9401100032 940110 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE INFLATION SLOWDOWN THAT BEGAN FOLLOWING THE RECESSION AND CONTINUED THROUGH 1993 IS EXPECTED TO EXTEND INTO 1994 EVEN AS THE ECONOMY STRENGTHENS A SLIGHT RISE IN THE DECEMBER CONSUMER PRICE INDEX FORECAST BY MANY ECONOMISTS WOULD PUT THE INDEX UP 29 FOR THE YEAR EQUALING A SIXYEAR LOW ACHIEVED IN 1992 A LABOR DEPARTMENT REPORT TO BE RELEASED THIS WEEK PROBABLY WILL REVEAL A SCANT 01 INCREASE IN THE DECEMBER INDEX HELPED BY A DECLINE IN ENERGY PRICES FOR THE SECOND MONTH IN A ROW SAID TIM ROGERS AN ECONOMIST AT TECHNICAL DATA IN BOSTON ENERGY COSTS HAVE BEEN THE STORY THEY TANKED AGAIN IN DECEMBER MR ROGERS SAID CONSUMER PRICES MIGHT HAVE BEEN EVEN LOWER IN DECEMBER IF NOT FOR INCREASES IN HEALTHCARE COSTS AND FOOD PRICES HE SAID MEDICAL COSTS CLEARLY HAVE BEEN THE BUGABOO OF CONSUMER PRICES HE ADDED THE INDEX WHICH WAS UP 61 IN 1990 SLOWED TO 31 IN 1991 AND 29 IN 1992 THAT 29 FIGURE IN 1992 WAS THE LOWEST SINCE THE 11 RATE IN 1986 THE FACT THAT PRODUCER PRICES WERE NEARLY FLAT IN 1993 BODES WELL FOR CONSUMER PRICES IN 1994 ACCORDING TO MR ROGERS THE OUTLOOK FOR THIS YEAR IS STILL PRETTY BRIGHT HE SAID 9401100031 940110 CANADIAN COAL OUTPUT ROSE OTTAWA CANADIAN COAL PRODUCTION ROSE 46 TO 68600000 METRIC TONS IN 1993 FROM 65612000 TONS IN 1992 STATISTICS CANADA A GOVERNMENT AGENCY ESTIMATED A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS 9401100030 940110 TECHNOLOGY GENENTECH PRICES NEW DRUG BELOW ANALYSTS' FORECASTS SOUTH SAN FRANCISCO CALIF GENENTECH INC PRICED ITS NEWLY APPROVED DNASE CYSTIC FIBROSIS DRUG AT A WHOLESALE PRICE OF 9855 PER PATIENT PER YEAR JUST BELOW WHAT ANALYSTS HAD EXPECTED BUT MARKUP ON THE DRUG WHOSE TRADE NAME IS PULMOZYME WILL PROBABLY BE ABOUT 33 MAKING THE RETAIL COST MORE THAN 13000 A YEAR FOR EACH PATIENT SAID SAMUEL ISALY AN ANALYST OF MEHTA AND ISALY IN NEW YORK ANALYSTS EXPECT INSURERS WILL COVER THE COST GENENTECH SAID IT WILL ALSO MAKE THE DRUG AVAILABLE TO INDIGENT PATIENTS THAT WILL REDUCE ITS RECEIPTS FOR THE DRUG BY ABOUT 15 FROM THE WHOLESALE PRICE MR ISALY SAID THAT WORKS OUT TO AN AVERAGE OF ABOUT 8377 A PATIENT BY PRICING THE DRUG JUST BELOW EXPECTATIONS AND ESTABLISHING A PROGRAM FOR INDIGENTS GENENTECH IS TAKING STEPS TO STAVE OFF CRITICISM THAT DRUG COMPANIES CHARGE TOO MUCH FOR THEIR PRODUCTS DNASE THE FIRST NEW THERAPY FOR CYSTIC FIBROSIS PATIENTS IN 30 YEARS CLEARS OUT THICK MUCUS THAT DEVELOPS IN PATIENTS' LUNGS MAKING BREATHING EASIER AND CUTTING DOWN ON INFECTIONS CYSTIC FIBROSIS IS AN INHERITED DISORDER WITH NO KNOWN CURE WHICH AFFECTS THE PANCREAS AND THE RESPIRATORY SYSTEM 9401100029 940110 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP REMEDIATION SERVICES UNIT IS AWARDED CONTRACT BY EPA WESTINGHOUSE ELECTRIC CORP PITTSBURGH SAID IT RECEIVED A 55 MILLION CONTRACT FROM THE US ENVIRONMENTAL PROTECTION AGENCY TO PROVIDE EMERGENCYREMOVAL CONTRACT SERVICES FOR EPA'S REGION II COVERING NEW YORK AND NEW JERSEY UNDER TERMS OF THE 18MONTH CONTRACT WESTINGHOUSE'S REMEDIATION SERVICES UNIT WILL PROVIDE ENVIRONMENTAL CLEANUP SERVICES WITHIN 48 HOURS FOR EMERGENCIES SUCH AS OIL PETROLEUM AND HAZARDOUSSUBSTANCE RELEASES OR POTENTIAL RELEASES THE COMPANY WILL ALSO OFFER CONTAINMENT AND SITE REMEDIATION THE EPA HAS THE OPTION TO BOOST THE CONTRACT 50 DURING THE NEXT 18 MONTHS WHICH COULD POTENTIALLY RAISE THE VALUE OF THE CONTRACT TO 8 MILLION WESTINGHOUSE REMEDIATION SERVICES IS A SUBSIDIARY OF WESTINGHOUSE'S ENVIRONMENTAL SERVICES BUSINESS UNIT 9401100028 940110 HEALTHTRUST INC MULLS ACQUIRING EPIC HEALTHCARE LATEST CONSOLIDATION MOVE IN HOSPITAL INDUSTRY COULD COST 400 MILLION BY ROBERT TOMSHO AND GLENN RUFFENACH STAFF REPORTERS OF THE WALL STREET JOURNAL HEALTHTRUST INC IS NEGOTIATING AN ACQUISITION OF CLOSELY HELD EPIC HEALTHCARE INC IN WHAT WOULD BE THE LATEST CONSOLIDATION IN THE HOSPITAL INDUSTRY ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE PROPOSED PURCHASE OF THE DALLAS COMPANY WHICH WOULD JOIN TWO OF THE NATION'S 10 LARGEST FORPROFIT CHAINS COULD COST AS MUCH AS 400 MILLION PLUS THE ASSUMPTION OF EPIC'S NEARLY 600 MILLION IN LONGTERM DEBT INDUSTRY EXPERTS ESTIMATE WHILE NEITHER COMPANY WOULD DISCUSS THE MATTER OR CONFIRM THAT NEGOTIATIONS ARE UNDER WAY PEOPLE FAMILIAR WITH THE TALKS SAID AN AGREEMENT COULD BE ANNOUNCED AS EARLY AS THIS WEEK IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE HEALTHTRUST CLOSED AT 25875 UP 125 CENTS THE COMBINATION OF THE TWO CHAINS WOULD REPRESENT ANOTHER STEP IN THE RAPID CONSOLIDATION OF THE HOSPITAL INDUSTRY AMID DECLINING OCCUPANCY RATES AND COSTCUTTING PRESSURE FROM THE CLINTON ADMINISTRATION ORNDA HEALTHCORP A NASHVILLE TENN CHAIN RECENTLY AGREED TO BUY BOTH SUMMIT HEALTH LTD AND AMERICAN HEALTHCARE MANAGEMENT INC CREATING A COMPANY WITH 16 BILLION IN REVENUE AND 46 ACUTECARE HOSPITALS IN 17 STATES MEANWHILE COLUMBIA HEALTHCARE CORP LOUISVILLE KY HOPES SOON TO COMPLETE ITS ACQUISITION OF NASHVILLEBASED HCAHOSPITAL CORP OF AMERICA THAT PURCHASE WILL CREATE THE NATION'S LARGEST FORPROFIT HOSPITAL CHAIN WITH ESTIMATED REVENUE OF 10 BILLION AND 190 HOSPITALS IN 26 STATES BASED IN NASHVILLE HEALTHTRUST IS THE NATION'S SECONDLARGEST FORPROFIT CHAIN WITH 81 HOSPITALS IN 21 STATES NONETHELESS THE ACQUISITION OF EPIC WITH ITS 39 HOSPITALS IN 10 STATES WOULD LEAVE HEALTHTRUST FAR BEHIND THE COLUMBIAHCA ENTITY IN SIZE THE PURCHASE HOWEVER WOULD CREATE AN OPERATION WITH 120 HOSPITALS IN 22 STATES AND ESTIMATED 34 BILLION IN REVENUE BOTH HEALTHTRUST AND EPIC OPERATE PRIMARILY IN THE SOUTH AND WEST WITH TEXAS THE BIGGEST MARKET FOR BOTH STILL OVERLAP IN ANY ONE METROPOLITAN AREA WOULD BE MINIMAL AND EPIC WOULD HELP EXPAND HEALTHTRUST IN CALIFORNIA AND LOUISIANA SOME OBSERVERS QUESTION THE ACQUISITION VALUE OF EPIC WHICH REPORTED A NET LOSS OF 251 MILLION FOR ITS FISCAL YEAR ENDED SEPT 30 WIDER THAN THE YEAREARLIER NET LOSS OF 193 MILLION REVENUE ROSE 83 TO 1 BILLION FROM 9413 MILLION EPIC'S SYSTEM IS WEIGHTED HEAVILY TOWARD SMALLERMARKET FACILITIES THE LARGER URBAN HOSPITALS THAT IT DOES HAVE SELDOM DOMINATE THEIR MARKETS MOREOVER EPIC WHICH IS CONTROLLED BY AN EMPLOYEE STOCK OWNERSHIP PLAN REMAINS SADDLED WITH DEBT FROM ITS 1988 SPINOFF BY AMERICAN MEDICAL HOLDINGS INC DALLAS WHICH STILL HOLDS A 22 STAKE SPUN OFF BY HCA IN 1987 EXPANSIONMINDED HEALTHTRUST RECENTLY SET UP JOINT VENTURES WITH COMPETITORS IN CALIFORNIA FLORIDA AND NORTH CAROLINA AND IT PURCHASED FIVE HOSPITALS IN TEXAS AND TENNESSEE FOR 901 MILLION AND AGREED TO BUY THREE MORE IN UTAH MOREOVER HEALTHTRUST HAS BROAD EXPERIENCE RUNNING FACILITIES LIKE EPIC'S ABOUT 40 OF HEALTHTRUST'S HOSPITALS ARE IN RURAL COMMUNITIES THE COMPANY HAS SLASHED DEBT AND SIGNIFICANTLY BOOSTED REVENUE FROM OUTPATIENT SERVICES TO 11 BILLION IN 1993 FROM 437 MILLION IN 1989 FOR ITS FISCAL YEAR ENDED AUG 31 1993 HEALTHTRUST REPORTED EARNINGS OF 1216 MILLION OR 146 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 431 MILLION OR 88 CENTS A SHARE REVENUE ROSE ALMOST 6 TO 240 BILLION FROM 227 BILLION 9401100027 940110 HALPERIN IS TO WITHDRAW AS PENTAGON JOB NOMINEE WASHINGTON MORTON HALPERIN ONE OF THE CLINTON ADMINISTRATION'S MORE CONTROVERSIAL NOMINEES IS WITHDRAWING HIS NAME FROM CONSIDERATION FOR A PENTAGON POST AN ADMINISTRATION OFFICIAL SAID MR HALPERIN REACHED AT HIS HOME YESTERDAY DECLINED TO DISCUSS HIS PLANS SAYING ONLY I EXPECT TO HAVE SOMETHING TO SAY CONCERNING MY FUTURE SOMETIME THIS WEEK PERHAPS AS EARLY AS TOMORROW BUT THE ADMINISTRATION OFFICIAL SAID THAT MR HALPERIN IS EXPECTED TO SEND A LETTER TO PRESIDENT CLINTON TODAY ASKING THAT HIS NAME BE WITHDRAWN FROM CONSIDERATION MR HALPERIN HAD BEEN NOMINATED LAST YEAR TO BE THE FIRSTEVER ASSISTANT SECRETARY OF DEFENSE FOR PEACEKEEPING AND HUMANITARIAN OPERATIONS THE NOMINATION RAN INTO DEEP HOSTILITY FROM CONSERVATIVES ON THE SENATE ARMED SERVICES COMMITTEE WHO WERE ESPECIALLY CRITICAL OF WHAT THEY CONSIDERED TO BE MR HALPERIN'S PAST POSITIONS ON INTELLIGENCEGATHERING IN ADDITION THE MILITARY WAS LEERY BOTH OF THE NEW POST AND THE MAN SELECTED TO FILL IT THE ARMED SERVICES PANEL HELD HEARINGS BUT DIDN'T ACT ON THE NOMINATION BEFORE THE SENATE WENT INTO RECESS WHICH MEANT THAT MR HALPERIN'S NOMINATION NEEDED TO BE RESUBMITTED 9401100026 940110 BUSINESS BRIEF COMMERZBANK AG DIVIDEND FOR 1993 INCREASED NEW SHARES WILL BE ISSUED COMMERZBANK AG A GERMAN BANKING GROUP RAISED ITS 1993 DIVIDEND TO 12 MARKS 688 UP TWO MARKS THE FRANKFURTBASED BANK ALSO ANNOUNCED THE CONDITIONS FOR A SHARE INCREASE THIS MONTH THE DIVIDEND AND CAPITAL INCREASE HAD BEEN WIDELY EXPECTED ALTHOUGH FRIDAY'S ANNOUNCEMENT SPELLS OUT THE DIMENSIONS OF BOTH AFTER A SUCCESSFUL BUSINESS YEAR IN 1993 THE BANK SAID 1994 ALSO PRESENTS A POSITIVE OUTLOOK COMMERZBANK WILL OFFER CURRENT SHAREHOLDERS ONE NEW SHARE FOR EVERY 10 THEY ALREADY HOLD THE BANK SAID THE PURCHASE OF ALL THE NEW SHARES WOULD RAISE 945 MILLION MARKS 54674 MILLION IN FRESH CAPITAL THE BANK SAID EACH NEW SHARE WILL BE PRICED AT 315 MARKS 18053 A SLIGHT DISCOUNT TO THE MARKET VALUE ON THE FRANKFURT STOCK EXCHANGE WHERE THE SHARES FINISHED AT 38250 MARKS UP 280 MARKS THE NEW SHARES WHICH WILL CARRY THE FULL DIVIDEND FOR 1994 WILL BE OFFERED IN A SUBSCRIPTION PERIOD FROM JAN 24 TO FEB 3 AND WILL BEGIN TRADING ON ALL EIGHT OF GERMANY'S STOCK EXCHANGES FEB 8 9401100025 940110 BUSINESS BRIEF TEXAS UTILITIES CO RECENT RATECASE DECISIONS HARM PRINCIPAL SUBSIDIARY TEXAS UTILITIES CO DALLAS SAID THAT RECENT RATECASE DECISIONS BY THE PUBLIC UTILITY COMMISSION OF TEXAS HURT ITS PRINCIPAL SUBSIDIARY AND THAT IT WILL ASK FOR ADJUSTMENTS THE UNIT TEXAS UTILITIES ELECTRIC CO SAID THE PUC'S REVENUEREQUIREMENT DECISIONS WILL AFFECT TEXAS UTILITIES ELECTRIC'S ANNUAL REVENUES RESULTING IN AN INCREASE OF ABOUT 430 MILLION OR 85 INSTEAD OF THE 105 BOOST RECOMMENDED TO THE PUC BY THE HEARINGS EXAMINERS A SPOKESWOMAN FOR TEXAS UTILITIES ELECTRIC SAID THAT THE PUC WILL MAKE ITS FINAL ORDER JAN 26 AND THAT THE COMPANY HOPES THE PUC WILL ALTER ITS PRELIMINARY ORDER BEFORE MAKING IT FINAL TEXAS UTILITIES STOCK FELL 625 CENTS TO CLOSE AT 3975 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON FRIDAY 9401100024 940110 COMMODITIES GERMAN FIRM FINDS HEDGES CAN BE THORNY BY JEFFREY TAYLOR AND ALLANNA SULLIVAN STAFF REPORTERS OF THE WALL STREET JOURNAL METALLGESELLSCHAFT AG THE BIG GERMAN ENGINEERING AND METALS CONGLOMERATE STUNNED ITS SHAREHOLDERS LAST WEEK BY ANNOUNCING POTENTIAL LOSSES IN ENERGY DERIVATIVES OF NEARLY 1 BILLION LIKE FALLING DOMINOES THE COMPANY'S LOSSES IN THESE COMPLEX RISKY INSTRUMENTS HAVE PRECIPITATED A WIDER FINANCIAL CRISIS THAT HAS PUSHED THE GROUP TO THE EDGE OF INSOLVENCY IN A MATTER OF WEEKS IT WASN'T RECKLESS SPECULATION IN DERIVATIVES TRADING THAT DROVE THE GERMAN GIANT TO THE BRINK PEOPLE FAMILIAR WITH ITS ACTIVITIES SAY INSTEAD THE LOSSES SEEM TO HAVE STEMMED FROM AN ILLSTARRED ATTEMPT BY MG CORP METALLGESELLSCHAFT'S US TRADING UNIT TO HEDGE ITS BUSINESS RISKS AS A WHOLESALER OF OIL PRODUCTS AN MG SPOKESMAN IN NEW YORK DECLINED TO COMMENT DERIVATIVES ARE FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM THE PRICE OF SOME UNDERLYING ASSET IN THIS CASE CRUDE OIL AND OTHER ENERGY PRODUCTS AT THE NEW YORK MERCANTILE EXCHANGE THE LARGEST US ENERGY MARKET MG HELD HEDGING CONTRACTS REPRESENTING BILLIONS OF DOLLARS OF CRUDE OIL AND OIL PRODUCTS ENERGY TRADERS SAY MG ARRANGED ADDITIONAL HEDGES IN THE PRIVATELY TRADED OVERTHECOUNTER DERIVATIVES MARKET TRADERS ADD BUT LATE LAST YEAR FALLING WORLD ENERGY PRICES HAMMERED THE VALUE OF THESE HUGE DERIVATIVES POSITIONS PRODUCING TOTAL LOSSES FOR MG OF ROUGHLY 660 MILLION PEOPLE CLOSE TO THE SITUATION SAY DESPITE METALLGESELLSCHAFT'S REPUTATION AS A SOPHISTICATED TRADING OUTFIT WITH MASSIVE FINANCIAL MUSCLE THE RESULTING FINANCIAL CRISIS HAS BEEN DIRE THE COMPANY'S SHARES HAVE PLUMMETED 50 ON THE FRANKFURT STOCK EXCHANGE FROM THEIR 1993 HIGH IN MIDNOVEMBER MOST OF THE COMPANY'S TOP BRASS WAS FIRED ABRUPTLY IN LATE DECEMBER WITH THE GROUP'S FORMER CHAIRMAN HEINZ SCHIMMELBUSCH TARGETED FRIDAY FOR CRIMINAL INVESTIGATION ON THURSDAY KAJO NEUKIRCHEN THE TURNAROUND SPECIALIST NEWLY NAMED AS METALLGESELLSCHAFT'S CHAIRMAN ANNOUNCED A LOSS FOR THE YEAR ENDED SEPT 30 OF MORE THAN 1 BILLION AT CURRENT EXCHANGE RATES AND ANOTHER ROUGHLY 870 MILLION IN POTENTIAL DERIVATIVERELATED LOSSES STILL TO COME WITHOUT AN EMERGENCY BAILOUT FROM ITS BANKS BY JAN 12 HE SAID METALLGESELLSCHAFT WOULD BE INSOLVENT HOW DID THIS COME TO PASS APPARENTLY THE SAGA BEGAN 18 MONTHS AGO WHEN MG BEGAN AGGRESSIVELY MARKETING GASOLINE HEATING OIL AND DIESEL FUEL ON A LONGTERM FIXEDPRICE BASIS TO OIL DISTRIBUTORS AND MARKETERS TRADERS SAY IN AN UNCONVENTIONAL MOVE TO WIN BUSINESS THE COMPANY EVEN NEGOTIATED CONTRACTS AS LONG AS FIVE TO 10 YEARS WITH INDIVIDUAL SERVICE STATIONS AROUND THE US INDUSTRY EXPERTS SAY BY AGREEING TO BUY OIL FROM MG AT FIXED PRICES OVER THE YEARS THESE COMPANIES LOCKED IN THE SUPPLIES THEY NEEDED AT PREDICTABLE PRICES BUT ENTERING INTO THESE AGREEMENTS SUBJECTED MG TO A BIG RISK IF OIL PRICES ROSE MG WOULD BE FORCED TO BUY OIL AT THE HIGHER PRICE AND DELIVER IT TO CUSTOMERS AT A LOSS TO HEDGE THAT RISK TRADERS SAY MG USED DERIVATIVES FOR EXAMPLE ON THE NYMEX IT BOUGHT FUTURES CONTRACTS COMMITTING ITSELF TO BUY OIL AT FIXED PRICES IN THE FUTURE ON THE PRIVATE DERIVATIVES MARKET IT ENTERED INTO SWAP CONTRACTS ENABLING IT TO RECEIVE PAYMENTS LINKED TO ENERGYPRICE FLUCTUATIONS IN RETURN FOR A MORE STABLE STREAM OF PAYMENTS SUCH AS THOSE LINKED TO SHORTTERM INTEREST RATES THE IDEA WAS THAT ALL THESE DERIVATIVES CONTRACTS WOULD GAIN IN VALUE IF OIL PRICES ROSE THUS OFFSETTING MG'S POTENTIAL LOSSES IN SUPPLYING ITS CUSTOMERS WITH OIL AT LOW FIXED PRICES A POTENTIAL GLITCH WAS THE MISMATCH IN TIMING BETWEEN THE PAYMENTS DUE FROM CUSTOMERS MOST OF WHICH MG WOULDN'T RECEIVE FOR YEARS AND THE MATURITY OF MG'S NYMEX CONTRACTS WHICH EXTENDED ONLY A FEW MONTHS INTO THE FUTURE MARKET PROFESSIONALS SAY IN ORDER TO MAINTAIN ITS HEDGES LONGTERM MG WAS OBLIGED TO CONSTANTLY ROLL OVER ITS NYMEX FUTURES INTO NEW CONTRACTS AS THE OLD ONES EXPIRED EVIDENTLY MG WAS CONFIDENT THAT THESE ROLLOVERS WOULDN'T BE A PROBLEM AND INDEED THE COMMON BELIEF AMONG DERIVATIVES EXPERTS IS THAT ROLLING OVER ENERGY FUTURES TENDS TO MAKE MONEY BECAUSE PRICES OF THESE CONTRACTS OFTEN EDGE UP AS THEY AGE AS A RESULT A COMPANY LIKE MG MIGHT EXPECT TO EKE OUT SMALL PROFITS BY CONSISTENTLY SELLING ITS EXPIRING FUTURES AND BUYING NEW LOWERPRICED FUTURES TO REPLACE THEM TROUBLE STARTED BREWING WHEN OTHER NYMEX TRADERS AWARE THAT MG WOULD HAVE TO EXECUTE ITS ROLLOVER MANEUVER EACH MONTH BEGAN TRADING AGAINST THE COMPANY ENERGY EXPERTS SAY THIS HELPED UPSET THE HISTORICAL PRICE RELATIONSHIPS BETWEEN EXPIRING FUTURES AND LONGERTERM FUTURES SO THAT MG BEGAN LOSING MONEY RATHER THAN MAKING MONEY WHENEVER IT ROLLED ITS HEDGES PHILIP VERLEGER SENIOR FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON DC ESTIMATES THAT MG MAY HAVE LOST AS MUCH AS 30 MILLION EACH TIME IT ROLLED OVER ITS CONTRACTS IN THIS WAY MEANWHILE AS THE NUMBER OF MG'S FIXEDPRICE ARRANGEMENTS TO SELL OIL INCREASED SO DID THE NUMBER OF DERIVATIVES IT NEEDED FOR HEDGING THOSE OPERATIONS EXCHANGE TRADERS AND OTHERS IN THE ENERGY BUSINESS SAY EVENTUALLY MG'S SUPPLY COMMITMENTS GREW SO LARGE THAT ITS HEDGING NEEDS EXCEEDED LIMITS ON THE NUMBER OF CONTRACTS IT WAS ALLOWED TO PURCHASE AT THE NYMEX THEY ADD THE EXCHANGE SOMETIMES EXEMPTS COMPANIES FROM THESE LIMITS IF THEY HAVE SIGNIFICANT RISKS TO HEDGE NACHAMAH JACOBOVITS NYMEX SPOKESWOMAN WON'T SAY WHETHER THE EXCHANGE GRANTED AN EXEMPTION IN MG'S CASE BUT SAYS IT ISN'T UNCOMMON FOR A COMPANY WITH SUBSTANTIAL SUPPLY AGREEMENTS AND LEGITIMATE PRICE RISK TO RECEIVE SUCH AN EXEMPTION IN ANY CASE TRADERS SAY MG'S NYMEX POSITION WAS FAR BIGGER THAN THE EXCHANGE'S 24000CONTRACT LIMIT MG'S HEDGING OPERATION LUMBERED ALONG WITHOUT CLOSE SCRUTINY FROM ITS GERMAN PARENT UNTIL THE PRICE OF OIL STARTED TO DROP LAST SEPTEMBER BANKERS AND TRADERS FAMILIAR WITH THE SITUATION SAY THEN THE PRICE OF WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE OIL BEGAN SLIPPING ON BURGEONING GLOBAL OIL SUPPLIES IN NOVEMBER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECIDED NOT TO CUT OUTPUT CAUSING PRICES TO FALL EVEN MORE SHARPLY WITH THE PRICE OF THE BENCHMARK CRUDE TUMBLING BELOW 1450 A BARREL THE STEEP PRICE DROP DEVASTATED MG'S MASSIVE DERIVATIVES POSITIONS PEOPLE CLOSE TO THOSE ACTIVITIES SAY THE TIMING MISMATCH BETWEEN THE HEDGING COSTS AND MG'S OILWHOLESALING REVENUES THEN SET OFF THE CHAIN OF CASH DIFFICULTIES THAT HAS DRIVEN THE CONGLOMERATE CLOSE TO COLLAPSE THESE PEOPLE ADD AT THE NYMEX A 20 DROP IN THE VALUE OF MG'S FUTURES CONTRACTS PRECIPITATED MARGIN CALLS OF 200 MILLION IN LATE 1993 ACCORDING TO PEOPLE FAMILIAR WITH THOSE TRADES TO GUARANTEE THAT TRADERS MAKE GOOD ON THEIR OBLIGATIONS THE NYMEX REQUIRES THEM TO SET ASIDE MARGIN MONEY AS COLLATERAL AGAINST THEIR CONTRACTS MARGIN CALLS ARE DEMANDS THAT COLLATERAL BE INCREASED AS POTENTIAL LOSSES MOUNT BESIDES THE NYMEX PROBLEMS MG ALSO SUFFERED HEAVY LOSSES IN ITS PRIVATE DERIVATIVES CONTRACTS ENERGY TRADERS SAY WORSENING MG'S WOES MEANWHILE WAS THE FACT THAT SOME OF ITS CUSTOMERS BACKED OUT OF THEIR LONGTERM COMMITMENTS TO PURCHASE OIL ACCORDING TO LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION WHILE NO ONE KNOWS FOR SURE TO WHAT EXTENT THE COMPANY'S BIG POSITIONS HAVE DEPRESSED AND WILL CONTINUE TO DEPRESS OIL PRICES THERE'S NO QUESTION THAT WORRIES ABOUT MG HAVE EXACERBATED AN ALREADY BEARISH MARKET MR GOLDSTEIN SAYS MR VERLEGER THINKS GASOLINE PRICES MAY IN RECENT WEEKS HAVE BEEN DEPRESSED BY AS MUCH AS FIVE CENTS A GALLON AND BECAUSE GASOLINE PRICES IN THE US ARE LINKED TO FUTURES PRICES US REFINERS MAY HAVE SEEN THEIR PROFITS REDUCED BY AS MUCH AS 200 MILLION HE SAYS WHILE METALLGESELLSCHAFT APPARENTLY HASN'T DEFAULTED ON ITS FINANCIAL OBLIGATIONS TO OTHER BIG ENERGY TRADERS THE TURMOIL HAS FORCED THOSE FIRMS TO REEVALUATE THEIR APPROACH TO THAT BUSINESS AFTER THIS PEOPLE WILL PROBABLY BE MORE CIRCUMSPECT ABOUT THE WAY THEY MANAGE CREDIT EXPOSURE TO EACH OTHER SAYS JULIAN BARROWCLIFFE DIRECTOR OF GLOBAL COMMODITY SWAPS FOR MERRILL LYNCH TERENCE ROTH IN FRANKFURT CONTRIBUTED TO THIS ARTICLE 9401100023 940110 BUSINESS BRIEF MERCK & CO APPLICATION ON ROXIAM DRUG FOR THE US IS WITHDRAWN MERCK & CO SAID IT WITHDREW ITS NEWDRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR ROXIAM A SCHIZOPHRENIA DRUG UNDER A CLOUD OF SERIOUS SIDE EFFECTS MERCK SUSPENDED US CLINICAL TRIALS OF ROXIAM IN NOVEMBER AFTER EIGHT PATIENTS USING IT IN EUROPE DEVELOPED A SERIOUS BLOOD DISORDER THAT CONTRIBUTED TO ONE PATIENT'S DEATH THE DISORDER APLASTIC ANEMIA IS A RARE CONDITION IN WHICH THE BONE MARROW FAILS TO PRODUCE BLOOD CELLS MERCK BOUGHT THE US MARKETING RIGHTS TO THE DRUG FROM SWEDISH DRUG MAKER ASTRA AB IN THE EARLY 1980S AND FILED LAST YEAR FOR REGULATORY APPROVAL TO MARKET IT IN THE US MERCK SAID ASTRA HAD INTRODUCED THE PRODUCT IN 15 EUROPEAN COUNTRIES AND IS CURRENTLY DISCUSSING WITHDRAWAL PROCEDURES WITH EUROPEAN REGULATORY AGENCIES 9401100022 940110 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED EIGHT NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD BEGAN TRADING COMMERCIAL NET LEASE REALTY INC ORLANDO FLA UNDER NNN A REAL ESTATE INVESTMENT TRUST THE STOCK PREVIOUSLY TRADED ON THE AMEX ALSO KENDALL INTERNATIONAL INC MANSFIELD MASS KEN A MAKER OF MEDICAL SUPPLIES AND STEWART INFORMATION SERVICES CORP HOUSTON STC AN INSURER BOTH COMPANIES FORMERLY TRADED OVERTHECOUNTER THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS HALLMARK CAPITAL CORP WEST ALLIS WIS HALL A SAVINGS BANK CONVERSION FROM MUTUAL TO STOCK FORM FFLC BANCORP INC LEESBURG FLA FFLC A ONEBANK HOLDING COMPANY SECURITY CAPITAL CORP MILWAUKEE SECP A BANK CONVERSION FROM MUTUAL TO STOCK FORM FIRST SAVINGS BANK OF MOORE COUNTY INC SSB SOUTHERN PINES NC SOPN A SAVINGS BANK AND STATEFED FINANCIAL CORP DES MOINES IOWA SFFC A SAVINGS AND LOAN INSTITUTION ALSO ROBOTIC VISION SYSTEMS INC NEW YORK ROBV A MAKER OF VISIONBASED PRODUCTS PREVIOUSLY TRADED ON THE PINK SHEETS ODETICS INC ANAHEIM CALIF ODETA AND CLASS B COMMON STOCK UNDER ODETB A SUPPLIER OF AUTOMATION SUBSYSTEMS PREVIOUSLY TRADED ON THE AMEX AND SPRECKELS INDUSTRIES INC PLEASANTON CALIF SPKL A PRODUCER OF INDUSTRIAL AND REFINED SUGAR PRODUCTS RECENTLY EMERGED FROM BANKRUPTCY THE AMEX BEGAN TRADING UNITED MOBILE HOMES INC EATONTOWN NJ UMH A REAL ESTATE INVESTMENT TRUST THE COMPANY PREVIOUSLY TRADED OVER THE COUNTER ON THE NASDAQ SMALL CAP MARKET AMEX AND CHICAGO BOARD OPTIONS EXCHANGE WILL BOTH BEGIN TRADING OPTIONS ON LEWIS GALOOB TOYS INC MONDAY JAN 10 AMEX ALSO BEGAN TRADING OPTIONS ON PLUM CREEK TIMBER CO 9401100021 940110 BUSINESS BRIEF INTRENET INC COMPANY OFFERS TO ACQUIRE PST IN REORGANIZATION PLAN INTRENET INC SAID IT OFFERED TO ACQUIRE PST VANS INC A TRUCKING COMPANY IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS PST OPERATES NEARLY 1000 TRACTORS MAINLY IN THE WESTERN CENTRAL AND SOUTHEASTERN REGIONS OF THE US THE OFFER WAS SUBMITTED ON JAN 4 AS PART OF A PROPOSED PLAN TO REORGANIZE PST AND IS SUBJECT TO APPROVAL BY THE US BANKRUPTCY COURT AND REGULATORY AGENCIES PST BASED IN SALT LAKE CITY HAS FILED ITS OWN REORGANIZATION PLAN WHICH COULD BLOCK THE DEAL UNDER INTRENET'S PLAN INTRENET BASED IN MILFORD OHIO WOULD ACQUIRE THE STOCK OF THE REORGANIZED PST PROVIDE MANAGEMENT ASSISTANCE FUND CASH PAYMENTS TO CERTAIN CREDITORS AND PROVIDE WORKING CAPITAL FOR PST INTRENET A HOLDING COMPANY FOR FIVE TRUCKING UNITS SAID ITS SHORTTERM FUNDING OBLIGATIONS WOULD BE 45 MILLION WHICH IT WOULD FINANCE WITH A BRIDGE LOAN FROM ONE OR MORE OF ITS SHAREHOLDERS 9401100020 940110 THIOKOL EXPANDS FASTENER ASSETS THIOKOL CORP OGDEN UTAH SEEKING TO BECOME A BIGGER SUPPLIER OF FASTENERS FOR THE COMMERCIAL AIRCRAFT INDUSTRY ACQUIRED CERTAIN ASSETS OF PRIVATELY HELD DEUTSCH FASTENER CORP BASED IN LAKEWOOD CALIF THE COMPANY DIDN'T DISCLOSE THE TERMS OF THE ACQUISITION BUT THE PURCHASE PRICE IS BELIEVED TO BE MORE THAN 10 MILLION THIOKOL'S HUCK INTERNATIONAL UNIT ALREADY PROVIDES TITANIUM FASTENERS FOR COMMERCIAL AIRCRAFT WHICH THIOKOL PRESIDENT AND CEO JAMES R WILSON SAID IS COMPLEMENTARY TO THE PRODUCT LINE THIOKOL IS ACQUIRING 9401100019 940110 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AVNET INC A SHELF OFFERING FOR UP TO 200 MILLION OF DEBT SECURITIES BENEFICIAL CORP A SHELF OFFERING FOR UP TO 3 BILLION OF DEBT SECURITIES BIOTIME INC AN OFFERING OF 900000 COMMON SHARES VIA THOMAS JAMES ASSOCIATES WHEATLEY TXT AN OFFERING OF 4000000 COMMON SHARES VIA MERRILL LYNCH & CO AND CS FIRST BOSTON 9401100018 940110 BUSINESS BRIEF GEORGIAPACIFIC CORP ROOFING MANUFACTURING LINE TO BE SOLD TO ATLAS ROOFING GEORGIAPACIFIC CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS ROOFING MANUFACTURING BUSINESS TO ATLAS ROOFING CORP MERIDIAN MISS TERMS WEREN'T DISCLOSED A GEORGIAPACIFIC SPOKESWOMAN SAID IN ATLANTA THAT THE DIVISION CONTRIBUTED ROUGHLY 130 MILLION IN SALES TO THE COMPANY IN 1993 GEORGIAPACIFIC EXPECTS THE SALE TO RESULT IN PROCEEDS OF BETWEEN 30 MILLION AND 35 MILLION THE COMPANY SAID IT IS SELLING THE BUSINESS BECAUSE IT DOESN'T FIT INTO ITS LONGTERM PLANS THE DIVISION'S ASSETS INCLUDE FIVE PLANTS IN OKLAHOMA TEXAS OHIO GEORGIA AND PENNSYLVANIA LAST YEAR GEORGIA PACIFIC SIGNED A DEFINITIVE AGREEMENT TO SELL THE DIVISION TO GAF CORP A SPECIALTY CHEMICAL AND BUILDING MATERIALS CONCERN IN WAYNE NJ GAF HOWEVER TERMINATED THE AGREEMENT IN JULY 9401100017 940110 BUSINESS BRIEF OCEVAN DER GRINTEN PROFIT FELL 29 IN 1993 FOREIGN EXCHANGE IS CITED DUTCH COPIER AND OFFICE SYSTEMS MAKER OCEVAN DER GRINTEN ESTIMATES THAT ITS NET INCOME IN 1993 FELL NEARLY 29 FROM THE PREVIOUS YEAR THE COMPANY POINTED HOWEVER TO IMPROVED BUSINESS IN THE FOURTH QUARTER WHEN NET ROSE 25 FROM THE YEAREARLIER PERIOD OCE SAID PRELIMINARY DATA SHOW PROFIT LAST YEAR REACHED AROUND 62 MILLION GUILDERS 3177 MILLION DOWN FROM 873 MILLION GUILDERS IN 1992 OCE ESTIMATED ANNUAL SALES FOR 1993 FELL ABOUT 5 TO 25 BILLION GUILDERS 128 BILLION COMPARED WITH 266 BILLION GUILDERS A YEAR EARLIER IT CITED UNFAVORABLE FOREIGNEXCHANGE INFLUENCES AS A NEGATIVE INFLUENCE ON EARNINGS EXCLUDING THE EFFECTS OF FOREIGN EXCHANGE SALES WOULD HAVE FALLEN 2 OCE SAID 9401100016 940110 BUSINESS BRIEF TRANZONIC COS FISCAL 4THQUARTER CHARGE ARISES FROM CONSOLIDATION TRANZONIC COS SAID IT WOULD INCUR A ONETIME CHARGE OF APPROXIMATELY 1 MILLION IN THE FOURTH QUARTER ENDING FEB 28 ARISING FROM CONSOLIDATION OF ITS THREE HOUSEWARES DIVISION UNITS THE COMPANY IN CLEVELAND A MAKER OF PAPER CLOTH AND VINYL PRODUCTS SAID MERGING MARKETING AND OPERATIONAL FUNCTIONS OF THE THREE DIVISIONS WOULD CAPTURE THE SYNERGISTIC ADVANTAGES OF ITS RECENT PURCHASE OF EVERREADY MANUFACTURING CO THE MOVE TO ST LOUIS WHERE EVERREADY IS BASED AFFECTS ABOUT 80 EMPLOYEES IN PHILADELPHIA AND DALLAS TRANZONIC SAID THE 1 MILLION CHARGE WILL ARISE FROM THE RELOCATION CONSOLIDATION AND CLOSING OF THE OPERATIONS THE CONSOLIDATION IS EXPECTED TO BE COMPLETED LATE IN THE FIRST QUARTER OF FISCAL 1995 9401100015 940110 CANADIAN STEEL OUTPUT OFF OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 221558 METRIC TONS IN THE WEEK ENDED JAN 1 AN 88 DECLINE FROM 242984 TONS THE PREVIOUS WEEK AND A 12 DECLINE FROM 251987 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS 9401100014 940110 METALLGESELLSCHAFT'S BUDERUS DISTANCES ITSELF FROM PARENT SPECIAL TO THE WALL STREET JOURNAL WETZLAR GERMANY BUDERUS AG A GERMAN HEATING AND COOLING TECHNOLOGY COMPANY ON FRIDAY TRIED TO DISTANCE ITSELF FROM THE FINANCIAL TROUBLES PLAGUING PARENT COMPANY METALLGESELLSCHAFT AG 80 OWNER OF PUBLICLY TRADED BUDERUS SAYING IT WANTS TO MINIMIZE MISUNDERSTANDINGS BUDERUS RELEASED A STATEMENT SAYING IT HAS NO CONTRACTUAL TIES TO METALLGESELLSCHAFT THAT COULD INTERFERE WITH THE INDEPENDENCE OF BUDERUS OR ITS MANAGEMENT THE CURRENT PROBLEMS AT METALLGESELLSCHAFT THEREFORE ALSO HAVE NO INFLUENCE ON THE SOUNDNESS LIQUIDITY AND EARNINGS CAPACITY OF BUDERUS BUDERUS POINTED OUT THAT PRETAX PROFIT FOR THE FISCAL YEAR ENDED SEPT 30 TOTALED 132 MILLION MARKS 756 MILLION AND THE FIRST QUARTER OF FISCAL 1994 CONFIRMS THE SUCCESSFUL PATH OF BUDERUS IT ALSO SAID IT HAS AVAILABLE LIQUIDITY OF 400 MILLION MARKS ALTHOUGH BUDERUS IS CONSIDERED THE GEM OF METALLGESELLSCHAFT SOME ANALYSTS HAVE SPECULATED IT COULD BE PUT UP FOR SALE AS THE PARENT COMPANY SEEKS AN ESCAPE FROM ITS CURRENT FINANCIAL SQUEEZE BEFORE HE WAS OUSTED LAST MONTH AS CHAIRMAN OF METALLGESELLSCHAFT HEINZ SCHIMMELBUSCH ALSO CHAIRED BUDERUS'S SUPERVISORY BOARD REPRESENTATIVES FROM BOTH COMPANIES SAID THEY COULDN'T SAY WHETHER KAJO NEUKIRCHEN MR SCHIMMELBUSCH'S SUCCESSOR AT METALLGESELLSCHAFT ALSO ASSUMED THE CHAIR OF BUDERUS'S SUPERVISORY BOARD UNDER GERMANY'S TWOTIER MANAGEMENT SYSTEM THE SUPERVISORY BOARD HAS NO DIRECT INFLUENCE IN A COMPANY'S DAYTODAY OPERATION BUT OVERSEES MANAGEMENT AND CAN HIRE AND FIRE TOP EXECUTIVES MR SCHIMMELBUSCH AND FIVE OTHER EXECUTIVES WERE DISMISSED FROM METALLGESELLSCHAFT AFTER CHARGES OF MISMANAGEMENT NEW MANAGEMENT DISCLOSED THAT METALLGESELLSCHAFT'S LOSSES COULD REACH 33 BILLION MARKS 189 BILLION AND SAID THE COMPANY WOULD BE FORCED INTO INSOLVENCY PROCEEDINGS UNLESS BANK CREDITORS APPROVE A RESCUE PACKAGE 9401100013 940110 BUSINESS BRIEF LAFARGE CORP UNIT'S HOURLY WORKERS FACE LOCKOUT OVER STALLED TALKS LAFARGE CORP SAID ITS LAFARGE CANADA INC UNIT WILL LOCK OUT HOURLY EMPLOYEES AT ITS FACILITY IN ALBERTA CANADA TODAY BECAUSE OF STALLED NEGOTIATIONS WITH UNION OFFICIALS THE CONSTRUCTION MATERIALS COMPANY WHICH IS BASED IN RESTON VA SAID ABOUT 100 EMPLOYEES MEMBERS OF THE BOILERMAKERS UNION ARE AFFECTED BY THE ACTION OUT OF A COMPANYWIDE WORK FORCE OF 7600 LAFARGE SAID THE LOCKOUT WON'T RESULT IN A CUTBACK OF THE PLANT'S OPERATIONS LAFARGE SAID THE UNION REJECTED PROPOSED CHANGES TO A LABOR AGREEMENT THAT EXPIRED AT THE END OF DECEMBER REGARDING JOB CLASSIFICATIONS OVERTIME AND ACCESS TO OUTSIDE CONTRACTING THE COMPANY SAID IT HOPES TO RESUME NEGOTIATIONS WITH THE UNION SOON 9401100012 940110 ICF KAISER CONTRACT EXTENSION FAIRFAX VA ICF KAISER INTERNATIONAL INC SAID A UNIT RECEIVED A 19 MILLION CONTRACT EXTENSION FROM THE SEATTLE WATER DEPARTMENT TO CONTINUE DEVELOPING SEISMIC UPGRADE DESIGNS AND PROVIDING CONSTRUCTION SUPPORT SERVICES FOR THE CITY'S MAJOR WATER SUPPLY STORAGE AND DISTRIBUTION FACILITIES THE UPGRADES ARE SCHEDULED TO BE COMPLETED IN 1997 THE COMPANY SAID 9401100011 940110 INTERNATIONAL BRIEF BARCLAYS PLC BANK HAS CUT 13500 JOBS OF 18000 POSITIONS TARGETED BARCLAYS BANK LONDON SAID IT HAS ALREADY ELIMINATED 13500 OF THE 18000 JOBS IT HAS PLANNED TO CUT IN THE NEXT FIVE YEARS BUT WOULDN'T COMMENT ON WHETHER THE JOBCUT TOTAL WOULD RISE BRITISH NEWSPAPERS ON SUNDAY SAID THE BANK A UNIT OF BARCLAYS PLC WOULD CUT A TOTAL OF 21000 JOBS OVER THE NEXT FIVE YEARS A BANK SPOKESMAN WOULDN'T CONFIRM THE REPORT BUT SAID THAT OBVIOUSLY THOSE FIGURES ARE ALWAYS UNDER REVIEW HE SAID THE BANK HADN'T ANY ANNOUNCEMENTS PLANNED FOR THE NEXT COUPLE DAYS AS REPORTED BARCLAYS IN 1991 INITIALLY TARGETED 15000 JOBS FOR CUTS OVER FIVE YEARS IT RAISED THAT TOTAL TO 18000 A YEAR LATER THE BANK SPOKESMAN SAID THAT EMPLOYEES AFFECTED WOULD BE THE FIRST TO KNOW ABOUT ADDITIONAL CUTS THE CUTS ARE PART OF AN OVERALL PROGRAM TO REDUCE COSTS THE BANK'S BRITISH WORK FORCE TOTALS ABOUT 71000 9401100010 940110 CORPORATE FOCUS U S WEST PREPARES TO MAKE A BIG SPLASH IN MULTIMEDIA PROPOSAL CALLS FOR BUILDING NETWORKS IN 20 CITIES OVER THE NEXT FIVE YEARS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL DENVER U S WEST INC IS EXPECTED TO UNVEIL AMBITIOUS PLANS TODAY TO BUILD NEW MULTIMEDIA NETWORKS IN 20 CITIES OVER THE NEXT FIVE YEARS STARTING WITH A 750 MILLION EFFORT IN FOUR MARKETS THE REGIONAL BELL COMPANY PLANS TO ENTER THE RACE FOR THE INTERACTIVE AGE WITH A NEW NETWORK SERVING 300000 HOMES AND CUSTOMERS IN DENVER WITHIN ABOUT TWO YEARS BY THE END OF 1994 U S WEST HOPES TO BEGIN CONSTRUCTION ON THAT NETWORK AND ON SIMILAR PROJECTS AIMED AT SERVING 292000 CUSTOMERS IN MINNEAPOLIS ST PAUL AN ADDITIONAL 132000 HOMES IN PORTLAND ORE AND AS MANY AS 60000 HOMES IN OMAHA NEB U S WEST PLANS TO SEEK PERMISSION FOR THE DENVER PLAN IN A FILING TODAY WITH THE FEDERAL COMMUNICATIONS COMMISSION ITS OVERALL BLUEPRINT OFFERS THE MOST DETAILED LOOK YET AT ITS OBJECTIVES SINCE INVESTING 25 BILLION FOR A 25 STAKE IN TIME WARNER INC'S ENTERTAINMENT UNIT LAST YEAR THE TIME WARNER INVESTMENT WAS SEEN AS THE BOLDEST MOVE EVER MADE BY A BABY BELL WHEN IT WAS FIRST ANNOUNCED LAST MAY AND CLOSED LAST SEPTEMBER A MONTH LATER HOWEVER U S WEST WAS UPSTAGED BY THE AUDACIOUS ACQUISITION PLANS OF RIVAL BELL ATLANTIC CORP WHICH SAID IT WOULD ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC FOR ABOUT 26 BILLION IN STOCK IT IS A LITTLE FRUSTRATING ONE U S WEST EXECUTIVE CONCEDES THE TCI DEAL SET OFF A FRENZY OF TALKS BETWEEN BELL COMPANIES AND CABLE COMPANIES DRIVING UP PRICES EVEN AS U S WEST SOUGHT OUT NEW DEALS IT'S TURNED INTO AN ENORMOUS MATING GAME MAKING NEGOTIATIONS A LOT TOUGHER SAYS CHARLES M LILLIS EXECUTIVE VICE PRESIDENT AND CHIEF PLANNING OFFICER OF U S WEST HE ACKNOWLEDGES THAT CABLEVISION SYSTEMS CORP WITH 21 MILLION SUBSCRIBERS AND A PRICE THAT COULD EXCEED 4 BILLION IS OF GREAT INTEREST TO US WHILE DECLINING TO CITE CABLEVISION SPECIFICALLY HE ALSO SAYS U S WEST IS CLOSE TO COMPLETING THE TERMS FOR ANOTHER BIG CABLE DEAL THAT MIGHT PUT U S WEST BACK IN THE SADDLE AGAIN ITS AIM TO SERVE UP INTERACTIVE FARE TO MORE THAN 750000 HOMES BY THE END OF 1995 AND TO ADD HALF A MILLION HOMES ANNUALLY THEREAFTER IS SOMEWHAT LESS AGGRESSIVE THAN THE BELL ATLANTIC PLAN BELL ATLANTIC HAS SAID IT WILL LINK UP 250000 HOMES THIS YEAR ADD A MILLION MORE NEXT YEAR AND EXPAND TO AN ADDITIONAL 15 MILLION IN 1996 STILL U S WEST'S PLAN MARKS A SIZABLE INVESTMENT AND RISK ESPECIALLY GIVEN THAT THE COMPANY HASN'T YET EVEN TESTED WHETHER TELEPHONE CONSUMERS ARE CLAMORING FOR HOME SHOPPING INTERACTIVE GAMES AND VIDEOONDEMAND THIS SPRING THE COMPANY WILL START SELLING ITS FIRST MULTIMEDIA SERVICES TO 2500 CUSTOMERS IN A TRIAL IN OMAHA NEB COMPANY EXECUTIVES HELD OUT THE PROSPECT THAT THEY WOULDN'T PROCEED IF THE OMAHA TEST WERE A DISMAL FLOP BUT THAT COURSE SEEMS UNLIKELY WE ARE ABSOLUTELY CONVINCED THAT THERE IS A MARKET FOR THESE TYPES OF SERVICES AND THAT IT WILL LAST FOREVER MR LILLIS SAYS U S WEST'S STRATEGY HOWEVER ALSO MAKES IT CLEAR THAT IT WILL PROBABLY TAKE MANY YEARS BEFORE INTERACTIVE SERVICES REACH BEYOND THE MOST LUCRATIVE MARKETS AND INTO THE NOOKS AND CRANNIES OF MUCH OF MIDDLE AMERICA ABOUT HALF OF U S WEST'S PROFITS ARE CONCENTRATED IN JUST FIVE CITIES DENVER MINNEAPOLIS AND PORTLAND WHICH U S WEST IS TARGETING FIRST AND SEATTLE AND SALT LAKE CITY THOSE TWO CITIES ARE EXPECTED TO BE INCLUDED IN THE NEXT MAJOR WAVE OF CONSTRUCTION THAT THE COMPANY PLANS TOGETHER THE FOUR CITIES WHERE U S WEST WILL BUILD FIRST REPRESENT ONLY ABOUT 17 OF U S WEST'S TOTAL REACH OF 13 MILLION ACCESS LINES THAT LEAVES AN AWFULLY LARGE PORTION OF ITS CUSTOMER BASE UNADDRESSED AND IT MAY HAVE TO WAIT A LONG SPELL BECAUSE OF THE HIGH COSTS INVOLVED IT WILL COST 1400 TO 1800 PER SUBSCRIBER TO HOOK UP CUSTOMERS IN THE NEW MULTIMEDIA NETWORKS IN THE NEXT TWO YEARS COMPARED WITH ABOUT 1200 TO HOOK UP A REGULAR PHONE CUSTOMER SAYS WILLIAM B SMITH PRESIDENT OF U S WEST'S RESEARCH ARM WHICH IS OVERSEEING TECHNICAL DEVELOPMENT OF THE OMAHA TRIAL EVEN THOUGH HE EXPECTS THE COST TO DROP TO 1000 WITHIN A FEW YEARS THAT WOULD STILL COST 13 BILLION OR MORE TO ADD INTERACTIVE FEATURES ACROSS U S WEST'S ENTIRE BASE EVEN COMPANY INSIDERS CONCEDE THEY WON'T HAVE A FULLSERVICE NETWORK ACROSS U S WEST'S ENTIRE 14STATE REGION ANYTIME SOON GIVEN ITS EXPANSIVE SERVICE TERRITORY GARY AMES CHAIRMAN OF U S WEST COMMUNICATIONS THE COMPANY'S TELEPHONESERVICE SUBSIDIARY SAYS IT COULD TAKE OVER A DECADE TO GET A UBIQUITOUS FULLSERVICE NETWORK IN PLACE BUT WE WILL GET THERE THE U S WEST SYSTEM IN OMAHA WHERE A RIVAL TEST IS PLANNED BY COX COMMUNICATIONS INC WHICH HAS TEAMED UP IN A CABLE VENTURE WITH SOUTHWESTERN BELL CORP WILL BE A MODEL FOR U S WEST'S FUTURE NETWORKS IT WILL USE FIBEROPTIC LINES THAT CAN CARRY A FULL LOAD OF VIDEO SIGNALS AND INTERACTIVE SERVICES AS WELL AS TRADITIONAL PHONE LINES CUSTOMERS WILL BE ABLE TO BUY BOTH TELEPHONE AND INTERACTIVE SERVICES FROM THE PHONE COMPANY AND MAINSTREAM CABLE OFFERINGS SUCH AS TIME WARNER'S HOME BOX OFFICE AND CINEMAX THE OMAHA SYSTEM WILL USE MAJOR COMPUTER GEAR FROM DIGITAL EQUIPMENT CORP AND SETTOP TECHNOLOGY FROM 3DO CORP IT WILL BE GUIDED BY A U S WESTDEVELOPED NAVIGATIONAL TOOL THAT MUST BE EASY TO USE SAYS RICHARD D MCCORMICK U S WEST CHAIRMAN AND CHIEF EXECUTIVE OFFICER EVEN IF THERE'S A PILE OF INFORMATION IF IT'S NOT EASY TO GET AT IT WON'T MEAN ANYTHING HE SAYS HE ALSO PROMISES THAT U S WEST WON'T BE BOMBARDING ITS MULTIMEDIA CUSTOMERS IN OMAHA OR ELSEWHERE WITH 500 CHANNELS OF ENTERTAINMENT A FIGURE NOW RIDICULED BY LATENIGHT COMEDIANS AS SYNONMYOUS WITH CABLE OVERKILL WE JUST WANT ONE CHANNEL WITH HUNDREDS OF SOPHISTICATED OFFERINGS MR MCCORMICK SAYS WE WANT CONSUMERS TO HAVE ACCESS TO ANY PIECE OF INFORMATION IN THE MULTIMEDIA SENSE ANYTIME THEY WANT IT 9401100009 940110 COMPRESSION LABS INTEL IN PACT SAN JOSE CALIF COMPRESSION LABS INC AND CHIP MAKER INTEL CORP OF SANTA CLARA CALIF SIGNED A NONBINDING AGREEMENT TO JOINTLY DEVELOP VIDEOCONFERENCING PRODUCTS UNDER TERMS OF THE AGREEMENT INTEL WILL PROVIDE AN UNDISLCOSED AMOUNT OF FUNDING AND BUY 2 MILLION OF NEWLY ISSUED COMMON STOCK IN COMPRESSION LABS A MAKER OF VIDEOCONFERENCING EQUIPMENT 9401100008 940110 SWISS CEMENT FIRM TO LIFT STAKE ZURICH HOLDERBANK FINANCIERE GLARUS AG A SWISS CEMENT COMPANY SAID IT PLANS TO INCREASE ITS STAKE IN HOLNAM INC A US SUBSIDIARY TO 100 FROM 95 HOLDERBANK SAID IT WILL OFFER HOLNAM SHAREHOLDERS 765 A SHARE OR A TOTAL OF ABOUT 54 MILLION IT SAID THE TRANSACTION WILL ALLOW FULLER CONTROL OF CASH FLOW FROM ITS US OPERATIONS 9401100007 940110 BOMBARDIER TO LEASE AIRCRAFT MONTREAL BOMBARDIER INC SAID LUFTHANSA LEASING OF FRANKFURT GERMANY AGREED TO ACQUIRE TWO CANADAIR REGIONAL JET AIRCRAFT FROM BOMBARDIER FOR ABOUT 39 MILLION THE TWO 50PASSENGER JETS SCHEDULED FOR DELIVERY IN MAY AND JUNE WILL BE LEASED BY LUFTHANSA CITYLINE A GERMAN CARRIER THAT NOW OPERATES 13 OF THE PLANES BOMBARDIER MAKES TRANSPORTATION EQUIPMENT 9401100006 940110 BUSINESS BRIEF FORD WILL DISTRIBUTE PROFITSHARING FUNDS THE FIRST IN 4 YEARS DEARBORN MICH FORD MOTOR CO SAID ALL HOURLY AND CERTAIN SALARIED EMPLOYEES WILL RECEIVE PROFITSHARING PAYMENTS IN MARCH FOR THE FIRST TIME IN FOUR YEARS RESTORING PROFITSHARING PAYMENTS IS ANOTHER SIGN THAT THE AUTO INDUSTRY IS ON THE UPSWING FORD HASN'T ANNOUNCED IF IT WILL PAY BONUSES TO ITS EXECUTIVES BUT IT WOULD BE HIGHLY UNUSUAL IF IT EXCLUDED THEM A SPOKESMAN FOR CHRYSLER CORP SAID IT WILL ALSO MAKE PROFITSHARING PAYMENTS TO ITS HOURLY EMPLOYEES NEXT MONTH AND PROBABLY WILL PAY BONUSES TO ITS EXECUTIVES BUT GENERAL MOTORS CORP IN A BREAK WITH PAST PRACTICE HAS SAID THAT IT WON'T PAY BONUSES OR PROFITSHARING DISTRIBUTIONS TO ITS EXECUTIVES OR WORKERS EVEN THOUGH IT SHOWED AN OVERALL PROFIT IN 1993 THE ONLY EXCEPTION IS GM'S SATURN UNIT WHICH SAID IT WILL PAY BONUSES AVERAGING 1000 EACH TO ALL 8000 SATURN EXECUTIVES AND HOURLY WORKERS THE AMOUNT OF FORD'S PAYOUT WILL BE ANNOUNCED IN FEBRUARY AND THE CHECKS WILL GO OUT IN MARCH FORD SAID AN ESTIMATED 145000 TO 150000 FORD EMPLOYEES ARE ELIGIBLE THE LAST TIME THE COMPANY MADE PROFITSHARING PAYMENTS WAS IN 1990 WHEN 150900 EMPLOYEES RECEIVED AN AVERAGE PAYMENT OF 1025 A FORD SPOKESWOMAN SAID OUR US SUCCESSES LAST YEAR WERE ACHIEVED THE OLDFASHIONED WAY WITH HARD WORK AND TEAMWORK THROUGH THE COOPERATION AND STRONG EFFORTS OF THE WHOLE FORD TEAM ALL SALARIED AND HOURLY EMPLOYEES THE UNITED AUTO WORKERS LEADERSHIP AND OUR DEALERS AND SUPPLIERS AS WELL ALEXANDER TROTMAN FORD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A TELEVISED BROADCAST TO FORD EMPLOYEES IN THE US 9401100005 940110 BUSINESS BRIEFS UNITED INSURANCE COS DALLAS AGREED TO ACQUIRE FIRST LIFE ASSURANCE CO OF OKLAHOMA CITY FROM LANDMARK LAND CO ALSO OF OKLAHOMA CITY TERMS WEREN'T DISCLOSED HICKOK ELECTRICAL INSTRUMENT CO CLEVELAND RECEIVED A 12 MILLION CONTRACT TO SUPPLY AUTOMOTIVE DIAGNOSTICTEST EQUIPMENT TO JAPAN'S MAZDA AUTO CORP'S MAZDA AUTO DEALERSHIPS THROUGHOUT THE US AND CANADA HICKOK WILL BEGIN SHIPPING ITS NEW GENERATION STAR DIAGNOSTIC TOOLS TO DEALERS LATER THIS MONTH AMERICAN INLAND DIVERS INC LAFAYETTE LA A UNIT OF AMERICAN OILFIELD DIVERS INC ACQUIRED CLOSELY HELD MIDWEST MARINE CONTRACTING INC OF KANSAS CITY KANSAS MIDWEST MARINE AN INLANDDIVING SERVICES COMPANY RECEIVED CASH AND PREVIOUSLY AUTHORIZED BUT UNISSUED SHARES OF COMMON STOCK IN THE TRANSACTION AS PART OF OILFIELD'S EFFORTS TO DIVERSIFY GEOGRAPHICALLY LG&E ENERGY CORP COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF ITS 365 GENERAL PARTNERSHIP INTEREST IN NATURAL GAS CLEARINGHOUSE IN HOUSTON TO NOVA CORP ALBERTA CANADA FOR 170 MILLION LG&E WHICH OWNS 23 POWER PLANTS SAID IT EXPECTS TO REPORT A PRETAX GAIN OF ABOUT 87 MILLION IN THE FIRST QUARTER OF 1994 ON THE SALE CANDIES NEW YORK SAID IT SIGNED AN EXCLUSIVE AGREEMENT WITH ASPEN LICENSING CORP OF WEST PALM BEACH FLA TO PRODUCE AND MARKET FOOTWEAR UNDER THE ASPEN LABEL THE LINE WILL OFFER RUGGED STYLES AND WILL RETAIL FROM 20 TO 60 9401100003 940110 MOYNIHAN ASSERTS REFORM OF WELFARE SHOULDN'T WAIT ON HEALTH LEGISLATION BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN SAID THAT WELFARE REFORM SHOULDN'T HAVE TO WAIT IN LINE BEHIND HEALTHCARE LEGISLATION THE NEW YORK DEMOCRAT SAID HE WAS TROUBLED BY A MEETING WITH WHITE HOUSE OFFICIALS ON HEALTHCARE CHANGES LAST MONDAY WHEN HE RECALLED THAT THOSE OFFICIALS SAID SEVERAL TIMES WE WON'T HAVE TIME FOR WELFARE UNTIL WE GET THIS HEALTHCARE BILL THAT WON'T WORK SEN MOYNIHAN DECLARED YESTERDAY ON NBC NEWS'S MEET THE PRESS WHILE SAYING THAT HEALTH CARE SHOULD BE A HIGH PRIORITY HE TOOK ISSUE WITH PRESIDENT CLINTON'S FREQUENT ASSERTION THAT THERE IS A HEALTHCARE CRISIS WE DON'T HAVE A HEALTH CRISIS IN THIS COUNTRY SEN MOYNIHAN SAID WE DO HAVE A WELFARE CRISIS AND WE CAN DO BOTH HE NOTED THAT A YEAR AFTER THE CLINTON INAUGURATION THERE STILL ISN'T ANY WELFARE BILL THOUGH HE NOTED THE PRESIDENT CAMPAIGNED ON THE ISSUE AND FREQUENTLY REFERS TO IT IN SPEECHES MR MOYNIHAN SAID HE THINKS HE IS MAKING SOME PROGRESS WITH THE WHITE HOUSE IN EMPHASIZING THE NEED TO MOVE AHEAD WITH A BILL TO OVERHAUL THE WELFARE SYSTEM WHICH HAS LONG BEEN A CRUCIAL MOYNIHAN ISSUE AND HE SEEMED TO BACK OFF COMMENTS THAT HE MADE IN A NEW YORK POST ARTICLE LAST FRIDAY WHEN HE WAS QUOTED AS SAYING THAT HE MIGHT JUST HOLD HEALTH CARE HOSTAGE UNTIL THE WHITE HOUSE MAKES GOOD ON PROMISES TO PUSH WELFARE LEGISLATION CLINTON AIDES WORRYING THAT WELFARE REFORM MAY INTERFERE WITH THEIR HEALTHCARE INITIATIVE HAVE SAID THAT AN ADMINISTRATION BILL ON WELFARE WON'T BE READY UNTIL SPRING THE BILL IS EXPECTED TO CALL FOR MOREEXTENSIVE JOB TRAINING FOR WELFARE RECIPIENTS AND REQUIRE THEM TO MOVE INTO JOBS AFTER TWO YEARS ON THE ROLLS THE ADMINISTRATION WANTS SWIFT ACTION ON BOTH THESE ISSUES HEALTH AND WELFARE REFORM BRUCE REED A WHITE HOUSE DOMESTICPOLICY AIDE WHO IS HELPING CRAFT THE CLINTON WELFARE PACKAGE SAID IN AN INTERVIEW YESTERDAY HE SAID THE ADMINISTRATION IS EAGER TO MOVE FORWARD ON WELFARE REFORM PLANS TO OFFER ITS PROPOSAL THIS YEAR AND HOPES CONGRESS WILL PASS IT SOON ON HEALTH CARE SEN MOYNIHAN SUGGESTED THAT THE ADMINISTRATION'S PROPOSAL TO CAP HEALTHINSURANCE PREMIUMS IS TOO SEVERE AND HE SAID HEALTHCARE LEGISLATION WILL NEED REPUBLICAN SUPPORT IN THE SENATE FOR IT TO MOVE TOWARD ENACTMENT SEN MOYNIHAN COMPLAINED THAT WHILE PRESIDENT CLINTON IS DEAD SERIOUS ABOUT WELFARE REFORM HE'S APPOINTED A LOT OF PEOPLE WHO AREN'T AS SERIOUS AS HE IS SEN MOYNIHAN HAS BEEN MEETING WITH A 33MEMBER ADMINISTRATION WELFAREREFORM TASK FORCE WHOSE MEMBERS ARE UNCERTAIN ABOUT WHETHER HE'LL SUPPORT THE WHITE HOUSE'S SPECIFIC PROPOSALS IN THE NEW YORK POST STORY HE COMPLAINED THAT THE WHITE HOUSE'S DRAFT WELFARE PLAN DOESN'T PROVIDE THE MONEY NEEDED TO FUND THE CHANGES THE SENATOR ALSO SAID ON THE NBC PROGRAM THAT HE HAD A LONG TALK ON WELFARE SATURDAY WITH WHITE HOUSE ADVISER GEORGE STEPHANOPOULOS WHO SAYS THEY'RE COMING ALONG SEN MOYNIHAN SAID THAT NOW I THINK WE HAVE THEIR ATTENTION AS FOR HEALTH CARE SEN MOYNIHAN DIDN'T AGREE WITH AN EARLIER ASSERTION BY SENATE MINORITY LEADER ROBERT DOLE R KAN THAT THE CLINTON IDEA OF PUTTING CAPS ON HEALTHINSURANCE PREMIUMS TO HOLD DOWN COSTS IS DEAD INSTEAD HE SAID THAT THE QUESTION IS REALLY AT WHAT LEVEL THOSE CAPS SHOULD BE SET THE CLINTON PROPOSAL WOULD LIMIT GROWTH IN PREMIUMS BY THE END OF THE CENTURY TO THE GENERAL RATE OF INFLATION PLUS POPULATION GROWTH THAT WOULD BE QUITE AN ACHIEVEMENT CONSIDERING THAT HEALTH COSTS HAVE BEEN CLIMBING AS MUCH AS 10 A YEAR SEN MOYNIHAN SAID 9401100002 940110 AUTOMOBILES AUTO SHOW REPORT BY OSCAR SURIS JUDGING BY REACTIONS FROM RIVALS THE BELLE OF THE JUSTOPENED DETROIT AUTO SHOW CLEARLY IS CHRYSLER CHRYSLER WOWED COMPETITORS BY PRICING ITS SPUNKY NEON SMALL SEDAN WHICH JUST WENT ON SALE AT A BASE OF 8975 WHICH WILL ALLOW IT TO CHALLENGE SUCH OLDER MODELS AS FORD MOTOR'S ESCORT AND GENERAL MOTORS'S SATURN FORD ENGINEERS DEVELOPING THE NEXTGENERATION ESCORT SCRAMBLED TO SEE THE NEON TRYING TO FIGURE OUT HOW CHRYSLER COULD CRAM A SPORTY ENGINE DUAL AIR BAGS AND A ROOMY INTERIOR INTO SUCH A SMALL INEXPENSIVE PACKAGE FOR SATURN THE MOST DISCOMFITING QUESTION WAS HOW DO YOU COMPETE WITH A CAR THAT OFFERS MORE FEATURES THAN A SATURN FOR 1000 LESS SATURN'S REPLY IT HAS FRIENDLY NOHAGGLE DEALERS AND ITS CARS RETAIN A HIGH RESALE PRICE INDUSTRY EXPERTS DOUBT THAT WILL BE ENOUGH FOR MANY BUYERS AS THE EDITORS OF AUTOMOBILE MAGAZINE SAID WHEN THEY NAMED NEON THEIR CAR OF THE YEAR IT'S THE CAR SATURN SHOULD HAVE BEEN BUT ISN'T JAPANESE AUTO MAKERS WHICH ARE TRYING TO SELL CIVICS AND TERCELS IN NEON'S CLASS FOR MORE THAN 11000 AREN'T HAPPY ABOUT THE NEON OR ITS BIG SISTERS THE CHRYSLER CIRRUS AND DODGE STRATUS TWO MIDSIZED COMPACT SEDANS THAT CHRYSLER UNVEILED THE TWO WHICH GO ON SALE THIS FALL HAVE THE SOPHISTICATED ENGINES SLEEK GOOD LOOKS AND THOUGHTFUL INTERIORS THAT ARE COMMON IN THE BEST JAPANESE FAMILY SEDANS THE TOYOTA CAMRY AND THE HONDA ACCORD THE CARS WILL OFFER FOUR OR SIXCYLINDER MULTIVALVE ENGINES AND EVEN LOOK A LOT LIKE THE ACCORD BUT CHRYSLER SAYS THEY ARE SPORTIER ROOMIER AND WILL BE PRICED 2000 TO 3000 LESS SAID ONE NISSAN EXECUTIVE AFTER SITTING IN THE CIRRUS CHRYSLER'S GOT IT HONDA USED THE DETROIT SHOW TO REMIND THE WORLD THAT UNTIL RECENTLY ITS SEDANS NOT CHRYSLER'S SET THE STANDARDS WHICH IS WHY HONDA SAYS IT IS NAMING NAMES WHEN IT TAKES SHOTS AT THE COMPETITION WE'RE NOT GOING TO STAND STILL WHILE OUR COMPETITORS COMPARE THEMSELVES TO OUR PRODUCTS BLUSTERED RICHARD COLLIVER EXECUTIVE VICE PRESIDENT OF THE HONDA DIVISION WE INTEND TO CONTROL OUR OWN DESTINY IN THE MARKETPLACE OR AS ONE WAG PUT IT WE'RE TIRED OF PEOPLE SAYING NICE THINGS ABOUT US AND WE'RE NOT GOING TO TAKE IT ANY MORE HONDA'S FIRST TARGET TOYOTA JAPAN'S BIGGEST AUTO MAKER IN A NEW SERIES OF ADS HONDA COMPARES ITS CIVIC DX WITH A TOYOTA COROLLA THE KICKER THE CIVIC IS 1700 LESS LAST YEAR SALES OF HONDA'S ACCORD WHICH USED TO BE THE NO 1 SELLING CAR IN THE US DROPPED 161 MAKING THE CAR NO 2 FOR A SECOND CONSECUTIVE YEAR BEHIND FORD'S TAURUS THE REAL POINT HONDA SAYS IS TO STRESS THAT HONDA CUSTOMERS GET VALUE FOR THEIR MONEY BUT THAT MAY BE A TOUGH SELL HONDA AND THE OTHER JAPANESE AUTO MAKERS HAVE SHARPLY JACKED UP PRICES BECAUSE OF THE SOARING YEN GIVING DETROIT A BIG PRICE ADVANTAGE AT 11750 THE BASE CIVIC COSTS 825 MORE THAN A BASE FORD ESCORT 1755 MORE THAN THE SATURN AND A WHOPPING 2775 MORE THAN THE CHRYSLER NEON DON'T EXPECT TO FIND THEIR NAMES IN A HONDA AD SOON NO AUTO SHOW IS COMPLETE WITHOUT CONCEPT CARS THOSE FUTURISTIC VEHICLES THAT CAR COMPANIES USE TO SHOWCASE DESIGNS AND IDEAS THAT MAY OR MAY NOT CLICK WITH CUSTOMERS THE SHOW'S SENTIMENTAL FAVORITE IS A LEMONYELLOW BEETLELIKE CAR FROM VOLKSWAGEN CALLED THE CONCEPT 1 THE STUBBY DOMESHAPED TWODOOR COMPACT PROMPTED AUTO WRITERS TO SPECULATE ABOUT THE RETURN OF THE BEETLE THAT '60S CULTURAL ICON AND SYMBOL OF VW'S FORMER GLORY VW INSISTS IT HAS NO PLANS TO BUILD A BEETLEINSPIRED CAR FOR THE '90S CHRYSLER'S PATRIOT FEATURED FUTURISTIC HYBRID POWERTRAINS PACKAGED IN A RACINGCAR CHASSIS THE PATRIOT IS POWERED BY A GASTURBINE ENGINE AND A MECHANICAL BATTERY THAT STORES AND GENERATES ENERGY CHRYSLER PLEDGED IT WOULD BUILD PATRIOTS ON A LIMITED SCALE FOR A PROFESSIONAL RACING CIRCUIT BUT THE DARING CONCEPT ALSO SERVED TO ADDRESS ONE OF CHRYSLER'S PERCEIVED WEAKNESSES TO ME IT PROVES THAT CHRYSLER IS CAPABLE OF PRODUCING BREAKTHROUGH TECHNOLOGIES SAYS JOHN MCELROY EDITOR OF AUTOMOTIVE INDUSTRIES MAGAZINE IT WAS THE BEST CONCEPT CAR OF THE SHOW FORD MIGHT ARGUE FOR ITS CONTEMPRA LONG AND ANGULAR THE SMOOTH REMAKE OF THE LINCOLN CONTINENTAL HAD PEOPLE MUSING ABOUT A NEW CONTINENTAL THAT MIGHT BREAK OUT OF THE LUXURY SEDAN'S BOXY PERSONA ONE PUZZLING FEATURE THOUGH IS THAT THE CAR HAS NO DOOR HANDLES OR KEYHOLES WHICH LED SOME TO ASSUME CORRECTLY THAT THE CAR OPENS ELECTRONICALLY VIA A REMOTE CONTROL THE DOORS ALSO CAN BE OPENED WITH A LIGHT RAP ON THE TAPSENSITIVE WINDOWS SAYS A FORD SPOKEMAN THIEVES HOWEVER WOULD HAVE TO KNOW EXACTLY WHERE TO TAP A DESIGN STRETCH THAT DIDN'T QUITE WORK WAS FORD'S POWER STROKE AN OUTRAGEOUS FULLSIZED PICKUP THAT SUPPOSEDLY INCLUDED STYLING CUES THAT TRUCK BUYERS WILL RECOGNIZE WHEN FORD INTRODUCES A REPLACEMENT FOR ITS F150 PICKUP HOWEVER THE POWER STROKE'S BANANAYELLOW SKIN AND ITS WRAPAROUND HEADLAMPS WHICH RESEMBLED SUNGLASSES DIDN'T DRAW CROWDS THERE ARE SOME IDEAS ON DISPLAY THAT AREN'T STRICTLY FOR SHOW AMERICAN SUNROOF A SUPPLIER OF SUNROOFS AND CONVERTIBLE TOPS FOR MOST MAJOR AUTO MAKERS IS SHOWING OFF A FULLY RETRACTABLE ELECTRICPOWERED HARDTOP FOR CONVERTIBLES IT IS TO BE AVAILABLE LATER THIS YEAR ON SOME MITSUBISHI MOTORS'S 3000GT CONVERTIBLE SPORT COUPES THE FIRST TIME A RETRACTABLE HARDTOP HAS GONE INTO PRODUCTION SINCE FORD'S SUNLINER CONVERTIBLE IN 1956 9401100001 940110 VIACOM BID DOESN'T APPEAR TO WIN PARAMOUNT RACE LASTMINUTE ACCORD TO BUY BLOCKBUSTER STILL LEAVES OFFER BEHIND QVC'S BY WALL STREET JOURNAL REPORTERS JOHNNIE L ROBERTS RANDALL SMITH AND LAURA LANDRO NEW YORK VIACOM INC'S LASTMINUTE PACT TO ACQUIRE BLOCKBUSTER ENTERTAINMENT CORP AND USE CASH FROM THAT DEAL TO SWEETEN ITS OFFER FOR PARAMOUNT COMMUNICATIONS INC STILL ISN'T ENOUGH TO PUT IT AHEAD OF RIVAL QVC NETWORK INC IN THE BIDDING ACCORDING TO WALL STREET TRADERS VIACOM SHARPLY INCREASED THE AMOUNT OF CASH IT IS OFFERING FOR 501 OF PARAMOUNT TO 105 A SHARE FROM 85 BUT THE REMAINING SECURITIES IN THE CASH AND STOCK OFFER BROUGHT THE TOTAL VALUE OF VIACOM'S BID AS OF FRIDAY TO ONLY AN AVERAGE OF 7836 A SHARE OR 94 BILLION COMPARED WITH THE QVC OFFER'S VALUE OF 8249 A SHARE OR 99 BILLION VIACOM'S AGREEMENT TO ACQUIRE VIDEO CHAIN BLOCKBUSTER IN A DEAL VALUED AT 84 BILLION WOULD IMMEDIATELY GIVE VIACOM 125 BILLION OF BLOCKBUSTER'S CASH BUT THE DEAL STUNNED INVESTORS AND DREW SHARP CRITICISM FROM SOME THEY CREATED A MERGER OF TWO COMPANIES TO MAKE AN INFERIOR BID SAID GORDON CRAWFORD A MONEY MANAGER AT CAPITAL GROUP INC IN LOS ANGELES A BIG SHAREHOLDER OF BLOCKBUSTER PARAMOUNT AND VIACOM THE LATEST TWIST IN THE FOURMONTHOLD BATTLE FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT COULD EXTEND THE CONTEST FOR WEEKS UNDER TERMS OF PARAMOUNT'S AUCTION GUIDELINES WHICH REQUIRE BOTH BIDS TO REMAIN OPEN FOR 10 DAYS AFTER EITHER BIDDER REVISES ITS OFFER BUT QVC SAYS VIACOM FAILED TO MEET THE AUCTION TERMS BECAUSE ITS NEW BID IS IN FACT INFERIOR TO THE BID VIACOM ALREADY HAD ON THE TABLE PEOPLE IN THE QVC CAMP INSISTED THAT THEY HAVE NO PLANS TO FURTHER SWEETEN THEIR BID AND INDICATED THAT QVC IS CONSIDERING CLOSING ITS OFFER EARLIER THAN THE END OF THE 10DAY PERIOD TRIGGERED BY VIACOM'S NEW BID LATE YESTERDAY VIACOM LABELED QVC'S ASSERTIONS ABOUT ITS OFFER UNFOUNDED IN A STATEMENT IT ALSO DEFENDED ITS LATEST OFFER SAYING THAT IT INCLUDES MORE THAN 11 BILLION MORE CASH THAN ITS PREVIOUS BID AND 800 MILLION MORE CASH THAN QVC'S CURRENT OFFER VIACOM SUGGESTED THAT THE SECURITIES IT IS OFFERING IN THE SECOND STEP BECAUSE THEY WOULD REFLECT THE STRENGTH OF THE THREE COMBINED COMPANIES WOULD BE MORE VALUABLE THAN THOSE QVC IS OFFERING ON FRIDAY PARAMOUNT SHAREHOLDERS TENDERED AS MUCH AS 28 OF THEIR STOCK TO QVC BUT MANY OF THE SHARES WERE WITHDRAWN WHEN IT BECAME CLEAR VIACOM WOULD MAKE A NEW OFFER AT SOME POINT SHAREHOLDERS WILL GET A CHANCE TO VOTE WHEN THERE IS NO LASTMINUTE THEATRICS SAID BRIAN ROBERTS CHIEF EXECUTIVE OF COMCAST CORP A MAJOR QVC SHAREHOLDER AND INVESTOR IN ITS BID I THINK WE CAN WIN WITH THE BID ON THE TABLE PARAMOUNT HAD NO COMMENT AND ITS DIRECTORS ARE SCHEDULED TO MEET WEDNESDAY TO CONSIDER THE NEW VIACOM OFFER BY THEN THE VALUES OF VIACOM'S AND QVC'S BIDS MAY HAVE SHIFTED ONCE AGAIN DEPENDING ON TRADING IN SECURITIES OF EACH BIDDER'S OFFER TRADERS SPECULATED THAT VIACOM MAY HAVE DECIDED AGAINST RAISING ITS OFFER IN ABSOLUTE TERMS BECAUSE ITS STOCK COULD GET CRUSHED THIS WEEK IF IT IS PERCEIVED AS THE WINNER OF THE PARAMOUNT BIDDING AFTER INITIALLY SECURING A 600 MILLION INVESTMENT FROM BLOCKBUSTER IN SEPTEMBER CABLE COMPANY VIACOM HAD RETURNED TO BLOCKBUSTER CHAIRMAN H WAYNE HUIZENGA FOR MORE CASH THOSE TALKS WITHIN THE SPACE OF TWO WEEKS TURNED TO AN OUTRIGHT ACQUISITION OF BLOCKBUSTER BY VIACOM UNDER THE AGREEMENT REACHED FRIDAY VIACOM WOULD ACQUIRE BLOCKBUSTER THE VIDEORENTAL GIANT BASED IN FORT LAUDERDALE FLA FOR ABOUT 31 A SHARE IN VIACOM SECURITIES OR 84 BILLION IN ORDER TO GIVE VIACOM THE CASH IT NEEDS TO RAISE THE PARAMOUNT BID BLOCKBUSTER SEPARATELY ALSO AGREED TO PAY THE 125 BILLION IN RETURN FOR 23 MILLION SHARES OF VIACOM'S CLASS B NONVOTING STOCK AT 55 A SHARE THE COMPANIES SAY THE MERGER WAS MADE FOR STRATEGIC REASONS AND ISN'T CONTINGENT ON A SUCCESSFUL BID FOR PARAMOUNT VIACOM EXECUTIVES SAY THEY HAD CONSIDERED A MERGER WITH BLOCKBUSTER EARLIER THIS YEAR BEFORE THE PARAMOUNT BATTLE THE MERGER WOULD LEAVE VIACOM CHAIRMAN SUMNER REDSTONE WITH 61 OF A NEW COMPANY THAT WOULD MELD VIACOM'S CABLE AND ENTERTAINMENT BUSINESS WITH BLOCKBUSTER'S FARFLUNG VIDEO AND MUSICRETAILING EMPIRE AND TELEVISION PRODUCTION BUSINESS CRITICS OF THE VIACOMBLOCKBUSTER DEAL SAID MR REDSTONE APPEARS TO BE TYING THE FUTURE OF HIS COMPANY TO THE DYING BUSINESS OF VIDEO RETAILING IN A DESPERATE MOVE TO GET CASH TO BOOST VIACOM'S BID FOR PARAMOUNT MR REDSTONE A 70YEAROLD BILLIONAIRE WHO DOESN'T LIKE TO LOSE IS ACTING PURELY ON EGO WITH LITTLE CONCERN FOR THE LONGERTERM PROSPECTS OF VIACOM'S ENTERTAINMENT AND CABLE BUSINESS SOME IN THE QVC CAMP CHARGE THOUGH THE VIACOM CAMP SAYS IT BELIEVES IT NOW WILL WIN PARAMOUNT ALL VESTIGES OF VIACOM'S ORIGINAL PLAN FOR A FRIENDLY MERGER WITH PARAMOUNT APPEAR TO BE GONE FRANK BIONDI VIACOM'S CHIEF EXECUTIVE OFFICER WILL BE CHIEF EXECUTIVE OF THE MERGED COMPANIES A POST HE WOULD ALSO HOLD IF THE BID FOR PARAMOUNT SUCCEEDS THAT WOULD LEAVE PARAMOUNT CHIEF EXECUTIVE MARTIN DAVIS TO WHOM MR REDSTONE HAD PROMISED THE CEO POST IN A COMBINED COMPANY OUT OF A JOB BUT SHAREHOLDERS REMAINED UNDERWHELMED MR CRAWFORD AND OTHERS SAY THE VIACOM BID IS INFERIOR BECAUSE DESPITE THE HIGHER CASH COMPONENT THE SECURITIES BEING OFFERED ARE WORTH LESS AS OF FRIDAY MORNING THE OLD VIACOM BACKEND OFFER FOR 49 OF PARAMOUNT SHARES WAS VALUED AT ABOUT 6940 A SHARE TRADERS SAY THE NEW BACK END IS VALUED AT ONLY ABOUT 5166 VIACOM AND BLOCKBUSTER VALUE IT AT ABOUT 5336 BUT DON'T APPLY A DISCOUNT TO THE CONVERTIBLE PREFERRED SHARES IN THE OFFER THE DECLINE IN VALUE STEMS FROM VIACOM'S REMOVAL OF CLASS A SHARES AND REDUCTION OF THE AMOUNT OF CLASS B SHARES VIACOM ALSO REDUCED SLIGHTLY THE PERCENTAGE OF PARAMOUNT SHARES IT IS SEEKING TO BUY FOR CASH TO 501 FROM 51 LONG VIEW URGED VIACOM'S ADVISERS SAID THE VALUATION OF THE NEW VIACOM BID SHOULDN'T BE BASED ON WHERE VIACOM STOCK IS TRADING ON ANY PARTICULAR DAY BUT RATHER OVER A LONGER PERIOD OF TIME ALAN SCHWARTZ HEAD OF INVESTMENT BANKING AT BEAR STEARNS & CO ONE OF VIACOM'S ADVISERS SAID THAT PARAMOUNT'S SHAREHOLDERS SHOULD CONSIDER THE INTRINSIC VALUES OF VIACOM SHARES AS THEY COMPARE THE BACK ENDS OF THE TWO COMPETING BIDS WE'RE CONFIDENT THAT THEY WILL CONCLUDE THAT THE COMBINED ENTITY OFFERS COMPELLING VALUE HE SAID SOME TRADERS SAID THERE MAY BE PRESSURE ON PARAMOUNT TO CHANGE ITS BIDDING PROCEDURES TO SPEED UP THE PROCESS BECAUSE IT DOESN'T SEEM TO BE ENCOURAGING EITHER SIDE TO MAKE ITS BEST BID THIS IS A CRAZY BIDDING PROCEDURE SAID ONE TRADER NOBODY'S MAKING THEIR BEST BID AND THE PROCESS NEVER ENDS ONE VIACOM SHAREHOLDER SAID THE BLOCKBUSTER ACQUISITION IS A GOOD MOVE IN ITS OWN RIGHT AND WOULD BE A GOOD CONSOLATION PRIZE FOR MR REDSTONE IF HE DOESN'T WIN PARAMOUNT COMBINED BLOCKBUSTER AND VIACOM WOULD HAVE CASH FLOW EQUIVALENT TO A COMBINED PARAMOUNT AND VIACOM AND PLENTY OF BORROWING POWER TO BUY OTHER MOTIONPICTURE PRODUCTION ASSETS THIS SHAREHOLDER SAID VIACOM EXECUTIVES ALSO SAY THEY SEE PLENTY OF GROWTH OPPORTUNITIES FOR BLOCKBUSTER ESPECIALLY OVERSEAS THEY ALSO EXPECT TO USE BLOCKBUSTER'S RETAILING PROWESS TO SELL MERCHANDISE BASED ON VIACOM CHARACTERS AND TO CROSSPROMOTE EACH OTHER'S OFFERINGS SOME ON WALL STREET SUGGESTED THAT ANOTHER TWIST TO THE PARAMOUNT FIGHT COULD EMERGE IF SOME OTHER SUITOR DECIDES TO TAKE A RUN AT BLOCKBUSTER WHICH BY AGREEING TO BE SOLD TO VIACOM HAS EFFECTIVELY PUT ITSELF UP FOR SALE UNDER THE RULINGS OF THE DELAWARE COURT THAT FORCED THE AUCTION OF PARAMOUNT BLOCKBUSTER WOULD IN THEORY ALSO HAVE TO ENTERTAIN OTHER BIDDERS IN A CONFERENCE CALL FRIDAY WITH ANALYSTS AND SHAREHOLDERS MR REDSTONE ALLUDED TO THE FACT THAT BLOCKBUSTER MAY NOW BE IN PLAY ACCORDING TO PEOPLE WHO TOOK PART IN THE CALL MR REDSTONE SAID AND INCIDENTALLY ONE THING I'M NOT GOING TO TELL YOU IS THIS IS A MARRIAGE MADE IN HEAVEN THAT NO ONE WILL TEAR ASUNDER A REFERENCE TO THE PRONOUNCEMENT MR REDSTONE MADE WHEN VIACOM FIRST ANNOUNCED A PROPOSED MERGER WITH PARAMOUNT IN SEPTEMBER IF THE VIACOMBLOCKBUSTER MERGER DOESN'T GO THROUGH AND IF VIACOM SUCCEEDS IN TAKING OVER PARAMOUNT BLOCKBUSTER WILL HAVE ALREADY PROVIDED THE 125 BILLION UNDER THE AGREEMENT WITH VIACOM IF VIACOM STOCK TRADES AT LESS THAN THE 55ASHARE PRICE AT WHICH BLOCKBUSTER IS BUYING THE 23 MILLION CLASS B SHARES THEN VIACOM WILL EITHER PAY BLOCKBUSTER ADDITIONAL COMPENSATION OF AS MUCH AS 275 MILLION OR BLOCKBUSTER WILL GET AN OPTION TO ACQUIRE PARAMOUNT'S THEME PARKS FOR 750 MILLION IF BLOCKBUSTER AND VIACOM JOIN AND ACQUIRE PARAMOUNT THAT WOULD GIVE THE COMBINED COMPANIES A STOCK MARKET VALUE OF ABOUT 15 BILLION PLUS 8 BILLION IN DEBT DURING THE CONFERENCE CALL MR CRAWFORD EXPRESSED CONCERN THAT THE COMPANIES WERE ESTIMATING 1993 CASH FLOW OR EARNINGS BEFORE DEBT INTEREST TAXES DEPRECIATION AND AMORTIZATION AT 144 BILLION EVEN IF THE NEXT YEAR'S CASH FLOW IS 18 BILLION THAT MEANS THE STOCK IS VALUED AT A RICH 14 TIMES CASH FLOW 9401070196 940107 ECONOMY PENA UNVEILS PROPOSAL FOR CORPORATION TO MANAGE AIRTRAFFIC CONTROL SYSTEM BY KEVIN G SALWEN AND DAVID WALL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED ITS PLAN FOR CREATING A GOVERNMENT CORPORATION TO MANAGE THE NATION'S AIRTRAFFIC CONTROL SYSTEM TRANSPORTATION SECRETARY FEDERICO PENA SAID THE ADMINISTRATION WILL SEND CONGRESS A LEGISLATIVE PROPOSAL THIS SPRING IF APPROVED BY CONGRESS THE CORPORATION WOULD BE FREE FROM GOVERNMENT RESTRICTIONS ON PROCUREMENT PERSONNEL AND FINANCING SUCH A SYSTEM WOULD BE ABLE TO FINANCE ITS LONGTERM DEBT MORE EASILY MR PENA SAID THE NATION'S SKIES WOULD BE SAFER THE TRANSPORTATION SECRETARY SAID BECAUSE THE AGENCY WOULD BE ABLE TO ADOPT THE LATEST TECHNOLOGY MORE QUICKLY THE AIRTRAFFIC CONTROL SYSTEM NEEDS TO BE AS FLEXIBLE AND ENTREPRENEURIAL AS THE INDUSTRY MR PENA SAID THE ADMINISTRATION SAID IT WILL PROPOSE A STRING OF OTHER CHANGES FOR THE INDUSTRY INCLUDING ALLOWING FOREIGN CARRIERS TO BUY AS MUCH AS 49 OF US AIRLINES UP FROM THE CURRENT 25 BUT ONLY IF US CARRIERS HAVE THE SAME OPPORTUNITIES IN THE FOREIGN CARRIERS' COUNTRIES LIMITING HOW LONG CARRIERS IN BANKRUPTCY PROCEEDINGS CAN HOLD LEASES ON AIRPORT SPACE AND GATES THE SENATE ALREADY HAS A BILL THAT WOULD ENFORCE A 60DAY LIMIT ON SUCH AIRPORT HOLDINGS STUDYING WAYS TO LOOSEN THE SOCALLED HIGHDENSITY RULE THAT LIMITS AIR TRAFFIC INTO FOUR MAJOR AIRPORTS CHICAGO'S O'HARE NEW YORK'S LA GUARDIA AND KENNEDY AND WASHINGTON'S NATIONAL EXAMINING WAYS TO ENCOURAGE MORE EMPLOYEE OWNERSHIP OF AIRLINES ALONG THE LINES OF UNITED AIRLINES' RECENT ACCORD WITH ITS WORKERS THE AIRLINE AND AEROSPACE INDUSTRIES GENERALLY CHEERED THE ADMINISTRATION'S INITIATIVES AIRTRAFFIC DELAYS COST THE AIRLINE INDUSTRY MORE THAN 2 BILLION A YEAR SAID CHIP BARCLAY PRESIDENT OF THE AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES HE WAS A MEMBER OF THE NATIONAL AIRLINE COMMISSION A GROUP ESTABLISHED BY THE CLINTON ADMINISTRATION THAT LAID MUCH OF THE GROUNDWORK FOR YESTERDAY'S PROPOSALS A SPOKESMAN FOR THE AIR TRANSPORT ASSOCIATION SAID THE CURRENT SYSTEM CANNOT MOVE QUICKLY ENOUGH TO IMPLEMENT NEW TECHNOLOGY BEFORE IT BECOMES OBSOLETE INDUSTRY OFFICIALS COMPLAINED THAT THE ADMINISTRATION'S PLAN DIDN'T INCLUDE TAX BREAKS FOR THE AIRLINES THE BURDENSOME LEVEL OF TAXATION AND FEES IMPOSED ON AIRLINES BY THE US GOVERNMENT HAS HAD A SIGNIFICANT IMPACT ON AIR CARRIER COSTS YIELDS AND PROFITABILITY SAID RONALD ALLEN CHIEF EXECUTIVE OF DELTA AIR LINES NEVERTHELESS HE AND OTHER INDUSTRY OFFICIALS SAID THEY WILL PUSH HARD TO GET THE ADMINISTRATION'S PROPOSALS THROUGH CONGRESS A CONCERTED EFFORT MAY BE NECESSARY SEN ERNEST HOLLINGS D SC CHAIRMAN OF THE SENATE COMMERCE COMMITTEE SAID HE HAS SERIOUS CONCERNS REGARDING THE PROPOSALS TO SEPARATE THE AIRTRAFFIC CONTROL SYSTEM FROM THE FEDERAL AVIATION ADMINISTRATION PARTICULARLY HOW SUCH A MOVE WOULD IMPACT SAFETY REP JAMES OBERSTAR D MINN CHAIRMAN OF THE HOUSE AVIATION SUBCOMMITTEE ALSO VOICED CONCERN ABOUT LOSS OF GOVERNMENT CONTROL OVER THE AIRTRAFFIC SYSTEM IF THEY NEED TO CUT COSTS TO IMPROVE THEIR BUDGET BECAUSE LANDING FEES ARE DOWN OR WHATEVER DOES THAT MEAN THEY'RE GOING TO LAY OFF CONTROLLERS OR HAVE CONTROLLERS WATCH LARGER PORTIONS OF AIRSPACE HE ASKED WHAT DOES THAT DO FOR THE SAFETY OF THE TRAVELING PUBLIC BUT ADMINISTRATION OFFICIALS ARGUED THAT THE PLAN WOULD INCREASE SAFETY IN THE SKIES BY GIVING CONTROLLERS BETTER EQUIPMENT THE ADMINISTRATION ALSO IS SEEKING SUGGESTIONS FROM THE AIRLINE INDUSTRY ABOUT REGULATIONS THAT COULD BE REPEALED FAA ADMINISTRATOR DAVID HINSON EARLIER THIS WEEK PUT A GENERAL CALL FOR SUGGESTIONS IN THE FEDERAL REGISTER SAYING THAT THE COSTS OF THE REGULATORY BURDEN ARE REAL WE PROBABLY HAVE SOME RULES OUT THERE WE DON'T NEED THE TRANSPORTATION DEPARTMENT ALSO THREATENED TO STEP UP ITS EFFORTS AGAINST AIRLINES THAT USE PREDATORY PRICING TO KEEP COMPETITORS OUT OF KEY CITIES OR IMPORTANT ROUTES THE AGENCY SAID IT WILL ACTIVELY WORK WITH STARTUP AIRLINES OR ENTREPRENEURS TO HELP THEM COMPETE 9401070195 940107 ATMEL EXPECTS TO POST FOURTHPERIOD PROFIT REACHING 98 MILLION SAN JOSE CALIF ATMEL CORP EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME ROUGHLY DOUBLED TO A RANGE OF 98 MILLION TO 103 MILLION CHAIRMAN AND CHIEF EXECUTIVE GEORGE PERLEGOS SAID ATMEL MANUFACTURES SOCALLED FLASHMEMORY SEMICONDUCTORS AND RELATED PRODUCTS WHICH REQUIRE LESS POWER THAN STANDARD CHIPS ATMEL SAYS IT IS THE SOLE MAKER OF FLASH CHIPS THAT REQUIRE ONLY THREE VOLTS OF POWER MOST OTHER CHIPS REQUIRE AT LEAST FIVE VOLTS ATMEL CHIPS ARE USED IN CELLULAR PHONES CONSUMER ELECTRONICS PRODUCTS AND AUTOMOBILES AMONG OTHER THINGS THE PROJECTED 1993 FOURTHQUARTER PROFIT COMES TO 46 CENTS TO 48 CENTS A SHARE IT EXCEEDS ANALYSTS' ESTIMATES WHICH GENERALLY RANGED FROM 43 CENTS TO 45 CENTS IN THE YEAREARLIER QUARTER ATMEL EARNED 47 MILLION OR 25 CENTS A SHARE ATMEL HAS ABOUT 216 MILLION SHARES OUTSTANDING COMPARED WITH ABOUT 188 MILLION A YEAR AGO MR PERLEGOS SAID THAT ATMEL IS BENEFITING FROM THE ACCELERATING TREND TOWARD SMALLER MOREPORTABLE ELECTRONIC AND COMPUTER EQUIPMENT INCREASING PORTABILITY DEPENDS LARGELY ON CHIPS THAT ARE SMALLER HAVE MORE MEMORY AND REQUIRE LESS POWER JUST WHAT ATMEL'S PRODUCTS DELIVER MR PERLEGOS SAID THE MARKETS FOR PORTABLE EQUIPMENT ARE REALLY WORKING FOR US AND IT'S DRIVING OUR GROWTH HE SAID MR PERLEGOS SAID REVENUE FOR THE 1993 FOURTH QUARTER JUMPED ABOUT 66 TO 67 MILLION TO 68 MILLION FROM 409 MILLION A YEAR EARLIER THE FOURTHQUARTER FORECAST INDICATES FULLYEAR EARNINGS OF AS MUCH AS 30 MILLION OR 147 A SHARE ON REVENUE RANGING UP TO ABOUT 2216 MILLION LAST YEAR ATMEL EARNED 139 MILLION OR 77 CENTS A SHARE ON REVENUE OF 1398 MILLION ON THE NASDAQ STOCK MARKET ATMEL SHARES CLOSED AT 37 UP 175 OR 5 9401070194 940107 ROSS STORES SALES NEWARK CALIF ROSS STORES INC SAID SALES OF ITS DISCOUNT CLOTHING FOR THE FIVEWEEK PERIOD ENDED SATURDAY CLIMBED 6 TO 183 MILLION FROM 173 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR DECLINED 3 9401070193 940107 VALUE CITY'S SALES RISE COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES AT STORES OPEN AT LEAST A YEAR INCREASED 4 FOR THE FIVE WEEKS ENDED SATURDAY WHILE TOTAL SALES ROSE 7 TO 1537 MILLION THE DISCOUNT DEPARTMENT STORE CHAIN OPERATES 75 STORES IN THE MIDWEST AND EAST 9401070192 940107 CAMPO DECEMBER SALES ROSE 22 NEW ORLEANS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID ITS SALES AT STORES OPEN MORE THAN A YEAR ROSE 22 IN DECEMBER TO 144 MILLION FROM 118 MILLION A YEAR EARLIER THE RETAILER'S TOTAL SALES MORE THAN DOUBLED TO 271 MILLION FROM 123 MILLION 9401070191 940107 INTERNATIONAL SHEIK TO SEEK BCCI DAMAGES BY ABU DHABI BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL SHEIK KHALID BIN MAHFOUZ A PROMINENT SAUDI ARABIAN FINANCIER WILL FILE SUIT TODAY AGAINST THE ABU DHABI GOVERNMENT IN LONDON'S HIGH COURT ACCORDING TO PEOPLE FAMILIAR WITH THE DOCUMENTS THE SUIT SEEKS BILLIONS OF DOLLARS IN DAMAGES WHILE ALLEGING THE ARAB SHEIKDOM HAS CONSPIRED TO ENMESH SHEIK KHALID IN THE AFFAIRS OF THE SCANDALPLAGUED AND NOW DEFUNCT BANK OF CREDIT & COMMERCE INTERNATIONAL THE LEGAL ACTION WOULD FURTHER SOUR THE ALREADYTENSE RELATIONSHIP BETWEEN SAUDI ARABIA AND THE NEIGHBORING SHEIKDOM OF ABU DHABI ABU DHABI IS RULED BY SHEIK ZAYED ALNAHYAN WHOSE GOVERNMENT CONTROLLED A MAJORITY STAKE IN BCCI HOLDINGS LUXEMBOURG SA BCCI'S PARENT COMPANY REGULATORS FROM BRITAIN THE US AND SEVERAL OTHER COUNTRIES SEIZED AND CLOSED BCCI A BIG INTERNATIONAL BANK IN JULY 1991 CITING A HISTORY OF FRAUD MONEY LAUNDERING AND ARMS TRAFFICKING IN HIS SUIT SHEIK KHALID IS EXPECTED TO ALLEGE THAT THE ABU DHABI INVESTMENT AUTHORITY AN AGENCY THAT MANAGES MUCH OF THAT PERSIAN GULF COUNTRY'S OIL WEALTH AND ITS SENIOR OFFICER GHANEM ALMAZRUI CONSPIRED TO EMBROIL HIM IN THE AFFAIRS OF BCCI USING DECEPTION AND FRAUD IN THE LATE 1980S SHEIK KHALID SAT ON BCCI'S BOARD AFTER HIS FAMILY WHICH RUNS NATIONAL COMMERCIAL BANK OF JIDDAH SAUDI ARABIA'S LARGEST BANK BOUGHT A SUBSTANTIAL STAKE IN BCCI THE FAMILY SOLD THAT STAKE BACK TO BCCI PRIOR TO THE SEIZURE AND CLOSURE OF THE LUXEMBOURGBASED BANK LAWYERS FOR SHEIK ZAYED AND THE ABU DHABI GOVERNMENT IN WASHINGTON AND LONDON DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT IN THE PAST SPOKESMEN FOR SHEIK ZAYED AND THE ABU DHABI GOVERNMENT HAVE MAINTAINED THAT HE AND HIS GOVERNMENT ARE THEMSELVES VICTIMS OF THE BCCI SCANDAL WHO LOST BILLIONS OF DOLLARS OF DEPOSITS AND INVESTMENTS AND ARE INNOCENT OF ANY WRONGDOING ABU DHABI IS DESPERATELY TRYING TO FIND WAYS OF SETTLING THE BCCI AFFAIR WHICH HAS INCREASINGLY HAUNTED THE SHEIKDOM THE PAST THREE YEARS THREATENING TO DISCREDIT ITS RULING HIERARCHY AND EXPLODING INTO A WORLDWIDE SPRAWL OF LEGAL CLAIMS A LUXEMBOURG COURT LAST FALL SHOT DOWN A PROPOSED LIQUIDATORS' SETTLEMENT FOR DEALING WITH DEPOSITORS WHO LOST AS MUCH AS 10 BILLION IN THE CLOSURE OF BCCI A POWERFUL GROUP OF BCCI DEPOSITORS THIS WEEK DEMANDED THAT ABU DHABI PAY AS MUCH AS 50 CENTS FOR EACH DOLLAR OF DEPOSITS LOST IN THE CLOSURE AND THAT IT MAKE THE PAYMENT WITHIN THREE MONTHS THE LONDON SUIT IS EXPECTED TO TRY TO FORCE ABU DHABI TO INDEMNIFY SHEIK KHALID FOR ANY LOSSES HE MAY INCUR AS A RESULT OF A 1992 BCCI LIQUIDATORS' SUIT AGAINST HIM THAT SUIT ALONE SEEKS AS MUCH AS 105 BILLION FROM SHEIK KHALID RECENT LEGAL DEVELOPMENTS IN THE US HAVE GIVEN SHEIK KHALID MORE FREEDOM TO TAKE LEGAL ACTION THE MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU AND THE FEDERAL RESERVE BOARD IN DECEMBER SETTLED BANKFRAUD CHARGES AGAINST THE SAUDI SHEIK AS PART OF THE SETTLEMENT SHEIK KHALID PAID 37 MILLION TO THE AUTHORITIES AND AGREED TO SET UP A 188 MILLION SETTLEMENT FUND AT THE FEDERAL RESERVE BANK OF NEW YORK THAT WILL BE AVAILABLE TO SATISFY SETTLEMENTS OR JUDGMENTS RELATING TO PENDING CLAIMS AGAINST THE SHEIK AND HIS BANK IN EXCHANGE THE AUTHORITIES DROPPED CHARGES THAT SHEIK KHALID CONSPIRED TO STEAL MORE THAN 300 MILLION FROM BCCI DEPOSITORS COMMENTING ON THE SETTLEMENT LAURENCE TRIBE A HARVARD UNIVERSITY LAW PROFESSOR WHO REPRESENTS SHEIK KHALID SAID ABU DHABI CONSPIRED TO LURE HIM AND MANY OTHERS INTO THE BCCI AFFAIR ABU DHABI HAS TRIED TO SHIFT RESPONSIBILITY TO MAKE IT APPEAR AS THOUGH HE WAS RESPONSIBLE FOR THINGS THAT ABU DHABI OFFICIALS WERE RESPONSIBLE FOR 9401070190 940107 ENTERPRISE AN ENTREPRENEUR'S SECRET TAKE NO RISKS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL ENGLEWOOD CLIFFS NJ MANY PEOPLE SHUN BECOMING ENTREPRENEURS BECAUSE THEY DREAD THE ESSENCE OF THE GAME TAKING RISKS ROBERT S REISS SAYS HE OWES HIS SUCCESS AS A BUSINESS OWNER TO AVOIDING RISK BOB REISS 63 YEARS OLD HAS STARTED 16 SMALLBUSINESS VENTURES IN HIS CAREER SHUNNING RISKS ALL THE WAY HIS COUNTERINTUITIVE STRATEGY REGULARLY ASTONISHES BUSINESSSCHOOL STUDENTS ASSIGNED TO STUDY IT PARADOXICALLY MR REISS SPECIALIZES IN A HIGHRISK FIELD SELLING VOGUE ITEMS WHOSE TIME QUICKLY COMES AND GOES YOU TRY LOTS AND LOTS OF THINGS BECAUSE YOU DON'T KNOW WHAT'S GOING TO WORK HE SAYS MR REISS USUALLY SELLS OR PHASES OUT HIS COMPANIES WHEN THEIR FAD PRODUCTS STOP SELLING TODAY HE OWNS MAINLY VALDAWN INC A FOURYEAROLD WATCH MARKETER HERE VALDAWN'S SALES OF ASIANMADE NOVELTY WATCHES MORE THAN DOUBLED TO 72 MILLION LAST YEAR FROM 33 MILLION IN 1992 MR REISS SAYS AT ALL HIS VENTURES MR REISS SAYS HE KEEPS OVERHEAD TO A BARE MINIMUM AVOIDS OWNING FACTORIES OR WAREHOUSES AND BRINGS IN PARTNERS TO SHARE THE INVESTMENT MY ENERGIES ARE SPENT ON LAYING OFF RISK DIVIDING IT UP WITH OTHER PEOPLE MR REISS SAYS IT'S AN APPROACH MANY LONGSURVIVING BUSINESS OWNERS TAKE SAYS HOWARD H STEVENSON A PROFESSOR AT HARVARD BUSINESS SCHOOL MANY PEOPLE THINK OF ENTREPRENEURS AS PLUNGERS AND GAMBLERS PROF STEVENSON SAYS BUT MOST SUCCESSFUL ENTREPRENEURS IF THEY TAKE ANY RISK AT ALL ARE VERY CALCULATING ABOUT IT AMONG ENTREPRENEURIAL SUCCESSES CAUTIOUS SOULS ARE FAR MORE COMMON THAN PEOPLE LIKE DONALD TRUMP HE ADDS ONE OF THE CASE STUDIES ASSIGNED TO ENTREPRENEURSHIP STUDENTS AT HARVARD'S BUSINESS SCHOOL INVOLVES MR REISS'S LOWRISK TRIVIAGAME VENTURE FROM THE EARLY 1980S WHEN MR REISS NOTED THE SUCCESS IN CANADA INITIALLY OF TRIVIAL PURSUIT 11 YEARS AGO HE SHOT OFF A LETTER TO TV GUIDE MAGAZINE PROPOSING THE CREATION OF A RIVAL TV GUIDE TELEVISION TRIVIA GAME MR REISS SAYS HE TURNED TO TV GUIDE BECAUSE ITS ESTABLISHED NAME WOULD REDUCE THE RISK INVOLVED IN A GAME VENTURE ALSO THE MAGAZINE COULD PROVIDE ADVERTISING SPACE SEEN BY MILLIONS WHEN THE PUBLISHER AGREED MR REISS CALLED A WEALTHY FRIEND IN CHICAGO THE TWO MEN FORMED TRIVIA INC TO CREATE AND MARKET THE GAME MR REISS HAD NO FUNDS OF HIS OWN AT RISK THE VENTURE USED HIS CHICAGO PARTNER'S LINE OF CREDIT TO ARRANGE FOR MANUFACTURING INSTEAD OF PAYING A FEE IN ADVANCE TO THE SPECIALIST HIRED TO DESIGN THE GAME MR REISS OFFERED A ROYALTY ON FUTURE SALES THAT WAS MUCH MORE COSTLY IN THE LONG RUN BUT IT REDUCED THE VENTURE'S RISK MR REISS SAYS THE VENTURE FARED VERY WELL INDEED ABOUT 7 MILLION IN SALES ON A 50000 INVESTMENT ACCORDING TO MR REISS OF COURSE HE HAD TO SPLIT THE PROFITS WITH HIS PARTNER BUT HE SAYS IT WAS WORTH IT TO REDUCE HIS RISKS MINIMIZING RISKS ALSO LETS MR REISS FOCUS ON UNGLAMOROUS FUNDAMENTALS SUCH AS SALES THOUGH HE IS A HARVARD MBA HIMSELF MR REISS RATES SELLING TECHNIQUES LARGELY NEGLECTED IN BUSINESS SCHOOLS AS MORE IMPORTANT THAN ANYTHING ELSE INSTEAD OF MAKING FEVERISH SALES PITCHES MORE SALESPEOPLE SHOULD SIT PATIENTLY WHILE CUSTOMERS TALK ABOUT THEIR NEEDS MR REISS SAYS THE MOST EFFECTIVE THING IS LEARNING HOW TO LISTEN HE SAYS FOR INSTANCE MR REISS CHOSE A CAT DESIGN FOR HIS FIRST NOVELTY WATCH AFTER ONE BUYER TOLD HIM THAT SUCH DESIGNS WERE IN STRONG DEMAND THE WATCH THE FIRST OF ABOUT 180 STYLES SOLD WELL BESIDES LISTENING MR REISS SAYS HE ALSO EXPLICITLY ASKS FOR ORDERS A ROUTINE STEP THAT MANY SALESPEOPLE NEGLECT TO TAKE ALTHOUGH CAUTION ISN'T ALWAYS ENOUGH TO ENSURE SUCCESS IT DOES ALLOW MR REISS TO AVOID LOSING MUCH MONEY EVEN WHEN HIS IDEAS FLOP AS HE SAYS THEY OFTEN HAVE IN 1988 FOR INSTANCE MR REISS'S R&R RECREATION PRODUCTS INC INTRODUCED A LINE OF NOVELTY PICTURE FRAMES THAT MADE PORTRAITS RESEMBLE MAGAZINE COVERS SUCH AS MAN OF THE YEAR ISSUES OF TIME THE ENTREPRENEUR PERSUADED TIME AND OTHER MAGAZINES TO GO ALONG AND HE WON ABOUT 3 MILLION IN ORDERS FROM RETAILERS BUT THE FRAMES FAILED WITH CONSUMERS AND THERE WERE ALMOST NO REORDERS IN LESS THAN TWO YEARS THE PRODUCT DIED STILL MR REISS SAYS HE LOST ONLY TIME AND EFFORT NOT MONEY INDEED HE SAYS THE BUSINESS TURNED A SLIGHT PROFIT WHILE IT LASTED HE SAYS HE HAD SPENT MORE THAN HALF HIS TIME FOR A YEAR SETTING UP THE BUSINESS BUT HE PAID NOTHING IN ADVANCE TO TIME AND THE OTHER MAGAZINES PROMISING ONLY ROYALTIES HE BUILT NO FACTORY TO MAKE PICTURE FRAMES INSTEAD HE BROUGHT IN A FRAME COMPANY IN CHELSEA MASS AS HIS PARTNER R&R WHICH IS STILL EXTANT MOVED ON TO OTHER PROJECTS ALL I COULD LOSE ON A DEAL LIKE THE PICTURE FRAMES IS TIME MR REISS SAYS MR REISS STARTED HIS CAREER AS A SALES EXECUTIVE FOR A PENCIL COMPANY IN THE 1950S HE WENT INTO BUSINESS FOR HIMSELF IN 1959 STARTING A TINY NEW YORK COMPANY THAT EARNED SALES COMMISSIONS FROM MANUFACTURERS FOR GETTING THEIR PRODUCTS INTO STORES I WANTED TO BE MY OWN BOSS HE SAYS EXCEPT FOR A PERIOD IN THE 1970S AFTER A LARGER COMPANY BOUGHT OUT HIS FIRST VENTURE MR REISS HAS BEEN HIS OWN BOSS EVER SINCE MAKING THINGS HAPPEN NOT TALKING ABOUT IT GIVES ME A BIG KICK HE SAYS I HAVE NO IDEA WHAT PEOPLE AT BIG COMPANIES DO IN MEETINGS ALL DAY THEY TALK THINGS TO DEATH TODAY MR REISS IS BUILDING ONE OF HIS BIGGEST VENTURES EVER PROMISING FASTER DELIVERY THAN THE BIGGEST WATCH MAKERS VALDAWN AIMS TO HIT 20 MILLION IN SALES FOR 1994 AND 50 MILLION WITHIN A FEW YEARS HE SAYS THE COMPANY HAS FIVE EMPLOYEES INCLUDING THE BOSS AND PLANS TO HIRE ONE OR TWO MORE THIS YEAR VALDAWN MR REISS SAYS IS MY FIRST CHANCE TO BUILD A LONGTERM LARGEVOLUME COMPANY SOMETHING THAT ISN'T JUST A FAD BUT MR REISS AS USUAL SAYS HE DOESN'T STAND TO LOSE MUCH IF HIS PROJECTIONS ARE WRONG HE STILL OWNS NO WAREHOUSE OR MANUFACTURING FACILITY VALDAWN INCREASES WATCH ORDERS FROM ITS SUPPLIERS ONLY WHEN IT HAS FIRM ORDERS IN HAND FROM ITS OWN CUSTOMERS HE SAYS MR REISS SAYS THAT FOR NOW HE WILL CONCENTRATE ON BUILDING VALDAWN BUT FURTHER VENTURES ARE ALWAYS POSSIBLE THERE ARE ALWAYS HUGE OPPORTUNITIES HE SAYS IF YOU JUST SIT BACK AND KEEP LOOKING 9401070189 940107 SOLO SERVE CORP SALES SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY INCREASED 54 TO 27 MILLION FROM 256 MILLION A YEAR EARLIER SALES AT STORES OPENED AT LEAST A YEAR DROPPED 56 YEARTODATE SALES ROSE 10 TO 1605 MILLION FROM 1458 MILLION A YEAR EARLIER SAMESTORE SALES DECLINED 57 9401070188 940107 REX STORES' SALES RISE DAYTON OHIO REX STORES CORP SAID DECEMBER SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 FROM A YEAR EARLIER TOTAL SALES ROSE 30 TO 614 MILLION FROM 473 MILLION THE CONSUMERELECTRONICS VENDOR'S FISCAL 1994 YEARTODATE SALES ROSE 28 TO 265 MILLION FROM 2066 MILLION A YEAR EARLIER WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 8 THE RETAILER'S FISCAL YEAR ENDS JAN 31 IN DECEMBER 1993 THE COMPANY OPERATED 134 STORES COMPARED WITH 106 THE YEAR BEFORE 9401070187 940107 CARSON PIRIE SCOTT SALES RISE 34 MILWAUKEE CARSON PIRIE SCOTT & CO SAID ITS SALES FOR THE FIVE WEEKS ENDED JAN 1 INCREASED 34 TO 2214 MILLION FROM 2142 MILLION IN THE YEARAGO PERIOD SALES AT STORES OPEN AT LEAST A YEAR CLIMBED 67 FOR THE 11 MONTHS CARSON REPORTED SALES OF 1097 BILLION DOWN 04 FROM SALES OF 1102 BILLION IN THE PRIOR YEAR SALES AT STORES OPEN AT LEAST A YEAR INCREASED 28 DURING THE PERIOD 9401070186 940107 WHO'S NEWS WHIRLPOOL CORP WHIRLPOOL CORP BENTON HARBOR MICH LOUISE GOESER 40 YEARS OLD FORMERLY PROJECT DIRECTOR OF THE BLOOMINGTON PROJECT IN CORPORATE ENVIRONMENTAL AFFAIRS AT WESTINGHOUSE ELECTRIC CORP WAS NAMED VICE PRESIDENT CORPORATE QUALITY SHE SUCCEEDS ROBERT BARTLEY WHO IS RETIRING FROM THE APPLIANCE MAKER 9401070185 940107 SWISS JOBLESS RATE IS UP BERN SWITZERLAND SWITZERLAND'S UNEMPLOYMENT RATE IN DECEMBER EDGED UP TO 51 OF THE WORK FORCE FROM 5 IN NOVEMBER THE GOVERNMENT ANNOUNCED IN DECEMBER 1992 THE JOBLESS RATE WAS 42 LAST MONTH 184388 PEOPLE WERE RECORDED AS JOBLESS COMPARED WITH 180293 IN NOVEMBER AND 129643 IN DECEMBER 1992 9401070184 940107 TORONTODOMINION REDEMPTION TORONTO TORONTODOMINION BANK SAID IT PLANS TO REDEEM ITS 990 SUBORDINATED NOTES THE BANK SAID THAT IT WILL REDEEM ON FEB 1 THE 150 MILLION OF THE NOTES DUE IN 1999 AT 100 OF THE PRINCIPAL AMOUNT THE NOTES WERE ISSUED IN 1989 TORONTODOMINION SAID THE NOTES REPRESENT VERY EXPENSIVE CAPITAL BY TODAY'S STANDARDS IT SAID REDEMPTION OF THE NOTES WON'T AFFECT KEY CAPITAL RATIOS 9401070183 940107 WHO'S NEWS TENNESSEE VALLEY AUTHORITY TENNESSEE VALLEY AUTHORITY KNOXVILLE TENN JOE DICKEY 49 YEARS OLD AND A TVA SENIOR VICE PRESIDENT WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER OF THIS FEDERAL UTILITY AS PART OF A MANAGEMENT RESTRUCTURING TVA ALSO NAMED OLIVER D KINGSLEY JR 51 AND CURRENTLY PRESIDENT OF TVA'S GENERATING GROUP TO THE NEW POSITION OF PRESIDENT OF TVA NUCLEAR AND CHIEF NUCLEAR OFFICER NORMAN ZIGROSSI 58 AND PRESIDENT OF TVA'S RESOURCE GROUP WAS NAMED TO THE NEW POST OF CHIEF ADMINISTRATIVE OFFICER 9401070182 940107 TECHNOLOGY & MEDICINE VALUE HEALTH WINS CONTRACT TO MANAGE FORD DRUG BENEFITS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL VALUE HEALTH INC SAID IT WON A CLOSELY WATCHED CONTEST TO MANAGE FORD MOTOR CO'S NATIONAL PRESCRIPTION DRUG BENEFITS PROGRAM FOR ITS 275000 UNION EMPLOYEES RETIREES AND DEPENDENTS THE PACT SHOWS HOW MERCK & CO'S RECENT MOVE INTO THE PHARMACEUTICAL BENEFITSMANAGEMENT BUSINESS BY MERGING WITH MEDCO CONTAINMENT SERVICES INC IS ALREADY RESHAPING DRUG MARKETING THE AVON CONN PROVIDER OF MANAGED CARE AND HEALTH CARE INFORMATION SERVICES SAID ITS VALUERX UNIT BEAT OUT MERCKMEDCO AND AN ALLIANCE INVOLVING BLUE CROSS AND BLUE SHIELD OF MICHIGAN AND MCKESSON CORP'S PCS HEALTH SYSTEMS INC UNIT THE CONTRACT WILL RESULT IN ABOUT 90 MILLION IN ANNUAL REVENUE FOR VALUE HEALTH OF WHICH 40 MILLION REPRESENTS NEW BUSINESS SEPARATELY PCS ANNOUNCED IT AND BLUE CROSS AND BLUE SHIELD OF MICHIGAN WERE AWARDED A SIMILAR CONTRACT TO MANAGE PRESCRIPTION DRUG BENEFITS FOR FORD'S 120000 SALARIED EMPLOYEES RETIREES AND DEPENDENTS THE AMOUNT WASN'T DISCLOSED IN THE ANNOUNCEMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY VALUE HEALTH SHARES CLOSED AT 3550 UP 325 ROBERT E PATRICELLI CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VALUE HEALTH INDICATED THAT THE CONTRACT WILL PLAY AN IMPORTANT ROLE IN HIS COMPANY'S EFFORT TO DEVELOP STRATEGIC ALLIANCES WITH MAJOR DRUG COMPANIES WE AREN'T LOOKING TO BE ACQUIRED HE SAID BUT WE WOULDN'T RULE OUT THE POSSIBILITY OF NONCONTROLLING INVESTMENTS IN VARIOUS FORMS FROM DRUG MANUFACTURERS SUCH RELATIONSHIPS HE AND ANALYSTS SAID WOULD BENEFIT BOTH VALUE HEALTH AND THE DRUG MAKERS VALUE HEALTH NEEDS PRICE BREAKS FROM DRUG COMPANIES TO COMPETE WITH MERCKMEDCO AND OTHER MANAGED CARE COMPANIES FOR BUSINESS WITH LARGE ACCOUNTS AND DRUG MAKERS NEED MANAGEDCARE PARTNERS TO ASSURE ACCESS TO MARKET FOR THEIR PRODUCTS THE CONTRACT AWARDED JOINTLY BY FORD AND THE UNITED AUTO WORKERS COVERS 275000 HOURLY WORKERS RETIREES AND DEPENDENTS A SIZE THAT MADE IT A DESIRABLE PLUM FOR MANAGED DRUG BENEFIT COMPANIES VALUE HEALTH'S VICTORY STRENGTHENS THEIR HAND WITH PHARMACEUTICAL MANUFACTURERS IN GAINING PRICE CONCESSIONS SAID KEN LAUDAN HEALTH CARE ANALYST WITH EQUITABLE SECURITIES IN NASHVILLE TENN VALUERX ALREADY ADMINISTERS DRUG BENEFITS FOR 105000 FORD/UAW BENEFICIARIES IN MICHIGAN A CONTRACT THAT RESULTS IN ABOUT 52 MILLION IN ANNUAL REVENUE ANALYSTS SAID THAT VALUE HEALTH HAD AN ADVANTAGE IN THE BIDDING BY ALREADY HAVING A MAJOR PORTION OF THE BUSINESS HOWEVER MERCKMEDCO WON AN EVEN BIGGER MANAGED DRUG BENEFIT CONTRACT FROM GENERAL MOTORS CO LATE LAST YEAR A SITUATION WHERE MEDCO WAS THE INCUMBENT BIDDER PCS AND BLUE CROSS AND BLUE SHIELD OF MICHIGAN WERE AWARDED THE CONTRACT FOR GM'S SALARIED EMPLOYEES VALUE HEALTH SAID IT WILL ADD THE 170000 BENEFICIARIES OUTSIDE OF MICHIGAN ON MARCH 1 OR AS SOON THEREAFTER AS POSSIBLE IN 1992 VALUE HEALTH REPORTED REVENUE OF 2622 MILLION 9401070181 940107 TECHNOLOGY DIABETESTESTER APPROVAL SOUGHT PITTSBURGH BIOCONTROL TECHNOLOGY INC SAID IT HAS APPLIED TO THE FOOD AND DRUG ADMINISTRATION TO MARKET A NONINVASIVE GLUCOSE SENSOR FOR DIABETICS THE MACHINE ELIMINATES THE NEED TO DRAW BLOOD TO MONITOR GLUCOSE LEVELS THE COMPANY SAID IT ANTICIPATES THE APPROVAL WITHIN FOUR MONTHS AND IS GETTING ITS INDIANA PA PLANT READY TO BEGIN PRODUCING SENSORS BY LATE SPRING BIOCONTROL HAS AN AGREEMENT WITH DIASENSE INC OF PITTSBURGH WHICH OWNS THE SENSOR TECHNOLOGY DIASENSE WILL PURCHASE THE SENSORS FROM BIOCONTROL AND MARKET THEM THE PRICE HASN'T BEEN SET 9401070180 940107 HILO DECEMBER SALES JUMPED HOUSTON HILO AUTOMOTIVE INC SAID SALES IN DECEMBER JUMPED 11 TO 156 MILLION FROM 14 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 1 FOR THE YEAR SALES INCREASED 96 TO 2052 MILLION FROM 1872 MILLION SAMESTORE SALES ROSE 05 9401070179 940107 MIDWAY AIR TO BEGIN SERVICE TO PHILADELPHIA DENVER FROM CHICAGO CHICAGO MIDWAY AIRLINES SAID IT WILL BEGIN SERVICE TO PHILADELPHIA AND DENVER FROM CHICAGO'S MIDWAY AIRPORT ON JAN 18 THE TWOMONTHOLD AIRLINE SAID IT WILL FLY THREE TIMES DAILY TO PHILADELPHIA AND TWICE A DAY TO DENVER AS A RESULT MIDWAY WILL BE ABLE TO OFFER TWO DAILY FLIGHTS BETWEEN NEW YORK'S LAGUARDIA AIRPORT AND DENVER VIA CHICAGO AND DAILY PHILADELPHIADENVER SERVICE VIA CHICAGO ONEWAY NONRESTRICTED FARES ARE 170 FOR CHICAGODENVER AND CHICAGOPHILADELPHIA AND 350 FOR NEW YORKDENVER AND PHILADELPHIADENVER TO PROMOTE THE NEW SERVICES HOWEVER MIDWAY SAID IT IS OFFERING REDUCED ONEWAY FARES OF 75 FOR CHICAGOPHILADELPHIA 90 FOR CHICAGODENVER 168 FOR LAGUARDIADENVER AND 149 FOR PHILADELPHIADENVER THE NONREFUNDABLE PROMOTIONAL TICKETS MUST BE PURCHASED BY JAN 15 FOR TRAVEL THROUGH MARCH 31 9401070178 940107 TECHNOLOGY MERIDIAN DIAGNOSTICS' NEW LINE CINCINNATI MERIDIAN DIAGNOSTICS INC SAID THE US FOOD AND DRUG ADMINISTRATION HAS GIVEN IT PERMISSION TO BEGIN MARKETING A NEW IMMUNOCARD PRODUCT USED TO DIAGNOSE INFECTIOUS MONONUCLEOSIS THE PRODUCT IS A TINY DEVICE CAPABLE OF DETECTING IN SERUM PLASMA OR WHOLE BLOOD THE ANTIBODIES PRODUCED DURING INFECTION MERIDIAN IS ONE OF THE LEADERS IN THE 16 MILLION WORLDWIDE ANNUAL MARKET FOR INFECTIOUS MONONUCLEOSIS TESTING HAVING RECENTLY ACQUIRED THE INFECTIOUS MONONUCLEOSIS PRODUCT LINE FROM ORTO DIAGNOSTIC SYSTEMS INC A UNIT OF JOHNSON & JOHNSON CO 9401070177 940107 GANTOS SALES FELL 8 FOR PERIOD GRAND RAPIDS MICH GANTOS INC REPORTED NET SALES OF 313 MILLION FOR THE FIVEWEEK PERIOD ENDED JAN 1 DOWN 8 FROM THE SAME PERIOD A YEAR AGO NET SALES FOR STORES OPEN AT LEAST A YEAR ALSO DROPPED 8 NET SALES FOR THE 48 WEEKS ENDED JAN 1 WERE 1922 MILLION OFF 9 FROM THE SAME PERIOD LAST YEAR NET SALES FOR STORES OPEN THROUGHOUT BOTH PERIODS DECLINED BY THE SAME AMOUNT 9401070176 940107 BROKER FIRMS LIKELY TO POST GOOD EARNINGS BUT 4THQUARTER NUMBERS MAY TRAIL RECENT ONES 1994 SETTING IS BRIGHT BY MICHAEL SANTOLI AND RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK BROKERAGE FIRMS' FOURTHQUARTER EARNINGS ARE EXPECTED TO FALL JUST SHORT OF THE LOFTY RESULTS POSTED OVER THE PREVIOUS SIX MONTHS BUT ANALYSTS SAY LOW INTEREST RATES AND BRISK DEMAND FOR SECURITIES EARLY THIS YEAR SHOULD CONTINUE TO PROVIDE A TAIL WIND FOR BROKERAGE FIRMS WHOSE PROFITS HAVE SOARED TO RECORD LEVELS FOR TWO STRAIGHT YEARS WALL STREET HAS A TOUGH ACT TO FOLLOW IN 1994 BUT ALTHOUGH THE BULL MARKET AND UNDERWRITING BOOM ARE A YEAR OLDER ANALYSTS DON'T SEE ANYTHING NEW TO PORTEND AN IMMINENT SLOWDOWN IN FACT THEY SAY INDUSTRY CONDITIONS NOW MIMIC THOSE OF A YEAR AGO UNDERWRITING VOLUME HAS REACHED UNPRECEDENTED LEVELS INVESTORS ARE EAGER TO SINK CASH INTO SECURITIES ISSUERS STILL NEED NEW CAPITAL AND INTEREST RATES ARE AT LOW LEVELS THAT COMBINATION MADE 1993 A RECORD YEAR BY NEARLY EVERY MEASURE AND BIG YEAROVERYEAR GAINS ACROSS ALL MAJOR BUSINESS LINES CONTINUED THROUGH THE FOURTH QUARTER ANALYSTS SAY THE FOURTH QUARTER WAS VERY STRONG SANFORD C BERNSTEIN ANALYST GUY MOSZKOWSKI SAID THE ONLY SIGNIFICANT WEAKNESS WAS IN FIXEDINCOME UNDERWRITING WHICH WAS DOWN FROM OTHER 1993 QUARTERS FIRST OF MICHIGAN ANALYST PERRIN LONG ESTIMATES THE INDUSTRY WILL REPORT FOURTHQUARTER NET INCOME OF 12 BILLION TO 13 BILLION SLIGHTLY OFF THE PACE OF THE FIRST NINE MONTHS WHEN HE SAID AGGREGATE EARNINGS WERE 44 BILLION MICHAEL FLANAGAN OF LIPPER ANALYTICAL SERVICES SAID THE STRENGTH OF THE FOURTH QUARTER SHOULD CONTINUE TO BE IN UNDERWRITING WITH STRONG CONTRIBUTIONS FROM COMMISSIONS FEES GATHERED FROM UNDERWRITING SURGED BY MORE THAN A THIRD FROM 1992'S RECORD 676 BILLION TO 91 BILLION PROPELLED BY UNPRECEDENTED DEMAND FOR INITIAL PUBLIC OFFERINGS AND OTHER EQUITY ISSUES OF THE SIX BIG NEW YORKBASED FIRMS SET TO REPORT QUARTERLY EARNINGS THIS MONTH ANALYSTS FORECAST MARGINALLY LOWER NET INCOME FOR MERRILL LYNCH & CO PAINEWEBBER GROUP DEAN WITTER DISCOVER & CO AND BEAR STEARNS COS SALOMON INC WHICH REPORTED AN ABERRANT ONE CENT A SHARE IN EARNINGS FOR THE THIRD QUARTER BECAUSE OF TRADING LOSSES IS EXPECTED TO REBOUND CHARLES SCHWAB CORP ALSO IS SEEN RUNNING SOMEWHAT AHEAD OF ITS THIRD QUARTER WHEN A ONETIME CHARGE CLIPPED REPORTED EARNINGS ANALYSTS CITE EVIDENCE THAT THE NATION'S LARGEST DISCOUNT BROKER HAS PULLED IN HEAVY VOLUME FROM ITS ONESOURCE MUTUAL FUND PROGRAM ALTHOUGH HE CITED A FEW CAUTIONARY SIGNS SUCH AS A SPATE OF WITHDRAWN IPOS AND A SLOWING OF REAL ESTATE INVESTMENT TRUST ISSUANCE CS FIRST BOSTON ANALYST DAVID HILDER SAID IN A LONGERTERM CONTEXT THE ENVIRONMENT IS VERY POSITIVE BUSINESSES AND GOVERNMENTS STILL NEED TO RAISE LARGE AMOUNTS OF CAPITAL AND IN A LOW INTERESTRATE AND LOWINFLATION ENVIRONMENT FINANCIAL ASSETS ARE CHEAPER TO OWN THAN OTHER ASSET CLASSES LOW INTEREST RATES FORM THE LINCHPIN OF WALL STREET'S THREEYEAR BOOM AND UNCERTAINTY ABOUT THE TRAJECTORY OF INTEREST RATES WHICH HAS UPSET THE BOND MARKET A FEW TIMES LATELY IS ALL THAT TEMPERS ANALYSTS' FORECASTS FOR 1994 THE SUPPLY OF NEW DEBT AND EQUITY STRETCHES UNBROKEN TO THE HORIZON ANALYSTS SAID BUT A SIGN OF CHANGING INTEREST RATES WILL CALL OFF ALL BETS MR FLANAGAN OF LIPPER ANALYTICAL SAID A SIGNIFICANT INCREASE IN INTEREST RATES WOULD BE EXPECTED TO DRAIN INDIVIDUALS' CASH FROM MUTUAL FUNDS AND BROKERAGE ACCOUNTS IN FAVOR OF TRADITIONAL SAVINGS INSTRUMENTS HE ADDED THAT ABOUT ONETHIRD OF BROKERAGE FIRMS' PRETAX PROFIT DERIVES FROM NET INTEREST REVENUE WHICH COULD MAKE BOTTOM LINES QUITE VULNERABLE TO RISING RATES THE FIRMS LIKELY TO BE BEST ABLE TO RESIST THE EFFECTS OF CLIMBING RATES ARE THOSE ADEPT AT CAPTURING AND RETAINING INDIVIDUALS' ASSETS SUCH AS DEAN WITTER DISCOVER AND MERRILL LYNCH ANALYSTS SAID JOAN SOLOTAR OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID THAT IN THE FIRST HALF OF 1994 UPSIDE SURPRISES SHOULD COME FROM QUICKENING MERGERS AND ACQUISITIONS BUSINESS AND EUROPEAN SALES AND TRADING AREAS CITED BY SEVERAL OBSERVERS AS POTENTIAL HEDGES AGAINST FLAGGING RETAILINVESTOR DEMAND IN THE US 9401070175 940107 INTERNATIONAL JAPANESE MINISTRY PROMOTES SPEEDUP ON INFO HIGHWAY BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MINISTRY OF POSTS AND TELECOMMUNICATIONS ALARMED BY A PERCEIVED US LEAD IN MULTIMEDIA NETWORKING SAID IT WILL BOOST DEVELOPMENT OF JAPAN'S OWN INFORMATION HIGHWAY THE MINISTRY UNVEILED A HANDFUL OF MEASURES YESTERDAY INTENDED TO PROMOTE NEW BUSINESSES AND THE EXPANSION OF A JAPANESE DATA NETWORK IN PARTICULAR THE MINISTRY PROMISED TO JUMPSTART THE CABLETV INDUSTRY BY ALLOWING COMPANIES TO DELIVER BROADCAST ENTERTAINMENT OVER FIBEROPTIC NETWORKS AND TO EASE REGULATIONS ON PROVIDERS OF SUBSCRIPTION BROADCAST SERVICES UNLIKE THE US WHERE COMPANIES SUCH AS MCI COMMUNICATIONS CORP SEEM TO ANNOUNCE EVERY WEEK NEW MULTIBILLION DOLLAR INVESTMENTS IN FIBEROPTIC DATA NETWORKS JAPAN HAS LAGGED IN BUILDING THE NETWORKS NEEDED TO DELIVER INTERACTIVE MULTIMEDIA ENTERTAINMENT AND A VARIETY OF OTHER SERVICES TO HOMES AND BUSINESSES REGULATION HAS DEFINITELY HAMPERED THE INTERNATIONAL COMPETITIVENESS OF THE TELECOMMUNICATIONS INDUSTRY IN JAPAN SAID MASASHI KOJIMA PRESIDENT OF TELECOMMUNICATIONS CONCERN NIPPON TELEGRAPH & TELEPHONE CORP JAPANESE COMPANIES FOR INSTANCE HAVE BEEN SLOW TO OFFER THE TELECOMMUNICATIONS SERVICES MANY AMERICANS TAKE FOR GRANTED SUCH AS CALLER ID AND CALL WAITING SIMILARLY CABLE TELEVISION OFTEN CONSIDERED A LOGICAL PRECURSOR TO MULTIMEDIA NETWORKS REACHES ONLY A SMALL PERCENTAGE OF JAPANESE HOMES THE MINISTRY HINTED IT MIGHT SPEED UP PLANS TO BUILD A NATIONWIDE FIBEROPTIC NETWORK NOW SLATED FOR COMPLETION IN 2015 MINISTRY OFFICIALS YESTERDAY SUGGESTED THEY NOW MAY SHOOT FOR A TARGET DATE FIVE YEARS EARLIER THE MINISTRY PREDICTS THAT THE MULTIMEDIA MARKET IN JAPAN WILL GROW TO 123 TRILLION YEN 108 TRILLION BY 2010 GENERATING 24 MILLION JOBS ALONG THE WAY STILL THE POSTAL MINISTRY INSISTS IT WILL CONTINUE TO PROMOTE DIRECT SATELLITE BROADCASTING WHICH IT HAS FAVORED UNTIL NOW OVER CABLE TELEVISION SYSTEMS IF PEOPLE IN GENERAL GO FOR SATELLITE BROADCASTING THE CABLE INDUSTRY COULD END UP UNDERDOGS SAID MINORU AKIMOTO PRESIDENT OF TIME WARNER ENTERTAINMENT JAPAN INC THE COMPANY A JOINT VENTURE OF TIME WARNER INC TOSHIBA CORP AND ITOCHU CORP HAS BEEN ACTIVELY EXPLORING CABLETV OPPORTUNITIES IN JAPAN WHILE THE NEW POLICY STILL LACKS CRUCIAL DETAILS SUCH AS WHO WILL PAY AN ESTIMATED 45 TRILLION YEN 399 BILLION NEEDED TO BUILD THE FIBEROPTIC NETWORK MINISTRY OFFICIALS SAID THEY WANTED TO PUT THEIR PLAN ON THE TABLE BEFORE US VICE PRESIDENT AL GORE MAKES A SCHEDULED SPEECH NEXT WEEK OUTLINING US POLICY TOWARD MULTIMEDIA NETWORKING 9401070174 940107 UNITED AIR TRAFFIC GAINS CHICAGO UNITED AIRLINES SAID ITS DECEMBER TRAFFIC ROSE 54 TO 798 BILLION REVENUE PASSENGER MILES FROM 757 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 638 FROM 631 FOR ALL 1993 THE UAL CORP UNIT SAID IT FLEW 101 BILLION REVENUE PASSENGER MILES UP 92 FROM 925 BILLION A YEAR EARLIER LOAD FACTOR WAS 671 DOWN FROM 674 9401070172 940107 MERRYGOROUND IS REPORTEDLY ASKING SUPPLIERS FOR A DELAY ON DEBT PAYMENTS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MERRYGOROUND ENTERPRISES INC AFTER REPORTING WEAK DECEMBER SALES IS ASKING ITS LARGEST SUPPLIERS AND FACTORING COMPANIES FOR A NINEMONTH MORATORIUM ON PAYMENTS OF ITS TRADE DEBTS ACCORDING TO RETAIL CREDITINDUSTRY EXECUTIVES THE JOPPA MD APPAREL RETAILER HAS BEEN STAVING OFF A CHAPTER 11 BANKRUPTCYLAW FILING AS IT RENEGOTIATES CREDIT AGREEMENTS WITH ITS LENDERS IN DECEMBER THE COMPANY MISSED PAYMENTS TO SUPPLIERS AND REPORTED A THIRDQUARTER LOSS THAT PLACED IT IN VIOLATION OF CREDIT PACTS YESTERDAY MERRYGOROUND REPORTED THAT SALES AT STORES OPEN AT LEAST A YEAR WERE DOWN 16 IN DECEMBER FROM A YEAR EARLIER IN AN ATTEMPT TO FURTHER FORESTALL A BANKRUPTCYLAW FILING MERRYGOROUND HAS ASKED MAJOR VENDORS AND FACTORING COMPANIES TO AGREE TO A MORATORIUM UNDER WHICH THE COMPANY WOULD PAY OFF THE ARREARS WITH INTEREST ON SEPT 1 MERRYGOROUND WHICH HAD PREVIOUSLY SAID IT WAS CONCERNED ABOUT RECEIVING AN ADEQUATE SUPPLY OF SPRING GOODS FOR ITS STORES HAS ALSO SAID IT WILL SET UP A 60 MILLION LETTER OF CREDIT TO FINANCE SPRING MERCHANDISE SHIPMENTS ACCORDING TO FACTORING AND RETAILCREDIT EXECUTIVES FACTORING COMPANIES GUARANTEE PAYMENT FOR SHIPMENTS FROM MANUFACTURERS TO RETAILERS ASKED ABOUT THE MORATORIUM AND LETTEROFCREDIT A COMPANY SPOKESWOMAN HAD NO COMMENT MERRYGOROUND WHICH SPECIALIZES IN CLOTHING FOR YOUNG MEN AND WOMEN OPERATES STORES MOSTLY UNDER THE NAMES CHESS KING CIGNAL AND MERRYGOROUND THE COMPANY WAS HURT BY A SLOWDOWN IN APPAREL SALES AND POOR SALES OF SUCH FAD MERCHANDISE AS BELLBOTTOM PANTS ON WHICH THE COMPANY BET HEAVILY LAST YEAR THE COMPANY HAD A NET LOSS OF 385 MILLION FOR THE THIRD QUARTER ENDED OCT 30 FOLLOWING THE NEWS ON DECEMBER SALES MERRYGOROUND SHARES FELL 50 CENTS TO 350 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SOME FACTORS WHO DECLINED TO BE IDENTIFIED SAID THEY WEREN'T SHIPPING ORDERS TO MERRYGOROUND RICHARD POSNER OF CREDIT EXCHANGE INC A CREDIT MONITORING AGENCY FOR APPAREL BUSINESSES SAID HE IS NOT APPROVING ORDERS TO MERRYGOROUND THEIR SITUATION ISN'T GETTING ANY BETTER HE SAID VENDORS AREN'T SHIPPING THEM SPRING GOODS BOB CARBONELL DIRECTOR OF CREDIT AT DUN & BRADSTREET'S CREDIT CLEARING HOUSE UNIT SAID HE WAS HOLDING ON WHETHER TO RECOMMEND THAT SUPPLIERS SHIP GOODS TO THE COMPANY HE IS WAITING TO SEE IF THE COMPANY CAN STRIKE A NEW AGREEMENT WITH ITS LENDERS WE NEED TO SEE WHAT THE SUPPLIERS WILL DO ON THE MORATORIUM MR CARBONELL SAID 9401070171 940107 DILLARD'S DECEMBER SALES ROSE 8 LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC SAID SALES FOR THE MONTH ENDED JAN 1 INCREASED 8 TO 9155 MILLION FROM 8503 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 5 YEARTODATE SALES ROSE 9 TO 484 BILLION FROM 444 BILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 IN THAT PERIOD 9401070170 940107 MARINER HEALTH SET TO ACQUIRE PINNACLE THROUGH STOCK SWAP MYSTIC CONN MARINER HEALTH GROUP INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PINNACLE CARE CORP IN A STOCK SWAP VALUED AT ABOUT 104 MILLION THE DEAL WOULD EFFECTIVELY DOUBLE MARINER'S REVENUE AND EXTEND ITS GEOGRAPHIC REACH THE COMPANY SAID MARINER WHICH EXPECTS TO POST REVENUE OF ABOUT 70 MILLION FOR 1993 PROVIDES SUBACUTE HEALTH CARE TO PATIENTS WHO NO LONGER REQUIRE THE EXTENSIVE SERVICES OF AN ACUTECARE HOSPITAL BUT ARE TOO SICK TO GO HOME CLOSELY HELD PINNACLE BASED IN NASHVILLE TENN OWNS OR MANAGES 13 SKILLED NURSING CENTERS OPERATES 27 OUTPATIENT REHABILITATION CLINICS AND CONTRACTS SERVICES TO NURSING HOMES IT'S EXPECTED TO POST REVENUE OF ABOUT 70 MILLION FOR 1993 MARINER SAID THE PACT IS THE LATEST IN A SERIES OF COMBINATIONS IN THE HEALTHCARE INDUSTRY AS PROVIDERS MOVE TO POSITION THEMSELVES FOR THE CLINTON ADMINISTRATION'S PROPOSED REFORMS ON WEDNESDAY SUN HEALTHCARE INC A NURSINGHOME OPERATOR AGREED TO ACQUIRE MEDIPLEX GROUP INC A PROVIDER OF SUBACUTE CARE FOR ABOUT 312 MILLION IN CASH AND STOCK ARTHUR W STRATTON JR CHIEF EXECUTIVE OFFICER AND PRESIDENT OF MARINER SAID THE ACQUISITION WILL EXTEND MARINER'S OPERATIONS FROM NEW ENGLAND AND MIDATLANTIC STATES TO THE SOUTHEASTERN REGION WHERE PINNACLE HAS A STRONG PRESENCE UNDER THE AGREEMENT MARINER SAID IT WILL ISSUE BETWEEN 49 MILLION AND 55 MILLION SHARES BASED ON THE PRICE OF MARINER'S STOCK BEFORE THE TRANSACTION IS COMPLETED THE 104 MILLION ACQUISITION PRICE IS BASED ON THE 2150 CLOSING PRICE OF MARINER'S SHARES IN NASDAQ TRADING YESTERDAY THE COMPANY SAID IT WOULD ISSUE 49 MILLION SHARES BASED ON THAT PRICE PINNACLE'S MANAGEMENT TEAM WILL REMAIN WITH THE COMBINED ENTITY WHILE PINNACLE'S PRESIDENT AND CHIEF EXECUTIVE J GEORGE HARRIS WILL ASSUME THE POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW COMPANY DR STRATTON WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF MARINER THE ACQUISITION HAS BEEN APPROVED BY THE BOARDS OF EACH COMPANY BUT STILL REQUIRES REGULATORY CLEARANCE AND SHAREHOLDER APPROVALS THE TRANSACTION IS EXPECTED TO BE COMPLETED IN APRIL ANNOUNCEMENT OF THE PLANNED ACQUISITION WAS MADE AFTER THE STOCK MARKET CLOSED YESTERDAY MARINER'S SHARES WERE UNCHANGED AT 2150 9401070169 940107 WHO'S NEWS SALEM CORP'S POSNER RESIGNS AS CHAIRMAN AND CHIEF EXECUTIVE PITTSBURGH VICTOR POSNER RESIGNED AS CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF SALEM CORP PITTSBURGH EFFECTIVE JAN 4 LAST MONTH A FEDERAL JUDGE BANNED MR POSNER WHO HAS TANGLED WITH SECURITIESLAW AUTHORITIES FOR 21 YEARS FROM SERVING AS AN OFFICER OR DIRECTOR OF ANY PUBLICLY TRADED COMPANY A SALEM SPOKESWOMAN SAID MR POSNER RESIGNED BECAUSE OF THE JUDGE'S ORDER THE COMPANY HAS NO PLANS TO NAME A SUCCESSOR BECAUSE MR POSNER IS APPEALING THE ORDER AA FORNATARO SALEM'S PRESIDENT FOR FIVE YEARS WILL KEEP HIS TITLE SALEM DESIGNS ENGINEERS AND INSTALLS HEAVY INDUSTRIAL EQUIPMENT PRIMARILY FOR THE COAL AND STEEL INDUSTRIES THE PENALTY ALSO APPLIED TO MR POSNER'S SON STEVEN POSNER WHO ALONG WITH HIS FATHER HAS BEEN AN OFFICER OF SEVERAL POSNERCONTROLLED COMPANIES OVER THE YEARS INCLUDING SHARON STEEL CORP DWG CORP AND SALEM THE TWO MEN WERE ORDERED TO PAY THE GOVERNMENT 39 MILLION STEVEN POSNER LEFT THE BOARD IN JULY MEANWHILE NVF CORP ALSO SAID THAT VICTOR POSNER AND STEVEN POSNER RESIGNED AS DIRECTORS AND OFFICERS OF THE COMPANY EFFECTIVE JAN 4 VICTOR POSNER THE LARGEST SHAREHOLDER IN MIAMIBASED NVF WAS CHAIRMAN AND CHIEF EXECUTIVE STEVEN POSNER WAS VICE CHAIRMAN NVF A MAKER OF PLASTICS CIRCUIT BOARDS AND OTHER PRODUCTS NOTED THAT THE RESIGNATIONS WOULDN'T DISRUPT THE COMPANY'S OPERATIONS IN A STERN REPROOF US DISTRICT JUDGE MILTON POLLACK CALLED THE TWO MIAMI BEACH BUSINESSMEN RECIDIVIST VIOLATORS OF THE FEDERAL SECURITIES LAWS JUDGE POLLACK'S ORDER CAME IN A CIVIL SUIT BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AGAINST THE POSNERS IN 1988 AS PART OF THE AGENCY'S SWEEPING CASE AGAINST DREXEL BURNHAM LAMBERT INC MICHAEL MILKEN AND IVAN BOESKY IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE SALEM'S STOCK WAS AT 14875 UP 625 CENTS 9401070168 940107 WHO'S NEWS PROCTER & GAMBLE CO PROCTER & GAMBLE CO CINCINNATI GEORGE G CAREY 60 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT ADVERTISING HUMAN RESOURCES AND MARKETING SERVICES P&G WORLDWIDE 9401070167 940107 YOUNG AND RESTLESS IN THE NEW VIETNAM BABY BOOMERS STRIVE FOR FUN AND MONEY IGNORING ELDERS' IDEALS THEY BECOME AVID CUSTOMERS IN BUDDING FREE MARKET OLD SOLDIERS' POSTWAR DOUBTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL HANOI VIETNAM I HAVE EVERYTHING SAYS THE YOUNG WOMAN PRACTICING ENGLISH IN HER BEST GARBO VOICE EXCEPT MONEY VIETNAM IS LIKE THAT THESE DAYS YOUNG MONEY HUNGRY A BIT SURREAL THE SUNSET PUB RUN BY A FORMER AID WORKER FROM FINLAND SERVES MEXICANSTYLE PIZZA AMID PHOTOS OF JAMES DEAN CHIANG KAISHEK'S OLD POLITICAL PARTY IN TAIWAN IS INVESTING IN HO CHI MINH CITY AND RETIRED AIR FORCE MAJ GEN RICHARD SECORD OF IRANCONTRA FAME COMES HERE ON BEHALF OF AN ENGINEERING COMPANY EVEN HUE WHOSE BUDDHIST MONKS ARE STILL A VOICE OF DISSENT HAS A NEW BEER BREWED WITH DANISH TECHNOLOGY MARX IS OUT AND WHAT IS DRIVING ALL THIS MORE THAN ANYTHING ELSE IS AN EXPLOSION IN THE NUMBER OF YOUNG PEOPLE COMING INTO THE WORK FORCE AND MARKETPLACE JUST AS THE LEADERSHIP HAS MOVED TOWARD A MORE OPEN ECONOMY HALF OF VIETNAM'S WORKERS ARE UNDER 30 ACCORDING TO GOVERNMENT OFFICIALS AND AS MORE THAN A MILLION BABY BOOMERS TURN 18 EACH YEAR AN OLDER GENERATION AND ITS ORDER ARE BEING PUSHED OUT TO PENSION IN THE PAST WE STUDIED AND FOUGHT FOR THE INDEPENDENCE OF THE NATION SAYS TRAN BUU LAM A GRAYHAIRED TEACHER AND COLLEGE ADMINISTRATOR IN HUE NOW THEY STUDY AND FIGHT FOR THEIR LIVES THE NEW GENERATION HAS LITTLE APPETITE FOR POLITICAL CAUSES AND FOCUSES ALMOST SINGLEMINDEDLY ON ECONOMIC SECURITY THERE IS A CYNICISM BRED BY WHOLESALE TUITION INCREASES AND OBVIOUS CORRUPTION AMONG POLICE AND ELDERS ENGAGED IN BLACKMARKET SMUGGLING BUT WITH THIS HARDBITTEN STREAK COMES A GREAT YOUTHFUL HUNGER FOR ROMANCE WITH THE RELEASE HERE OF THE FILM GONE WITH THE WIND SCARLETT O'HARA ENJOYS A FOLLOWING SHE IS BOTH THE MOST UNLIKELY AND TRUEST OF HEROINES FOR A SOCIETY WHERE WOMEN ARE STRONG AND THE TURMOIL OF RECONSTRUCTION IS GREAT WE HAVE TWO RISKS IN VIETNAM ONE IS THE CORRUPTION AND THE OTHER IS THE LACK OF MOTIVATION SAYS DUONG QUYNH HOA THE HEALTH MINISTER FOR THE VIET CONG DURING THE WAR NOW THEY ARE THINKING ONLY IN TERMS OF MONEY SHE SAYS OF THE NEW GENERATION WE MUST ALSO GIVE THE IDEALS TO THEM CAUGHT IN THE TRANSITION ARE VETERANS OF THE WAR WHO EXPRESS A SENSE OF EMPTINESS AND EVEN ANGER ONE LIKENS THE NEW MARKET ECONOMY TO A SWINGING DOOR THAT OPENS TO A BRIGHTER FUTURE BUT CAN COME BACK AND SMASH YOU IN THE FACE AND AS SOCIALISM FRAYS AND THE GAP WIDENS BETWEEN RICH AND POOR THE VIETNAMESE FACE THE SAME SELFDOUBT ABOUT THE WAR THAT HAS LONG TORTURED AMERICANS FANCY HOMES IN HANOI'S WEST LAKE AREA SYMBOLIZE THE CITY'S NEW ELITE WHILE IN OPEN LABOR MARKETS JUST BLOCKS FROM NATIONAL HERO HO CHI MINH'S MAUSOLEUM RURAL VILLAGERS LINE UP BEFORE DAWN LOOKING FOR DAY JOBS FROM CONSTRUCTION CONTRACTORS STATISTICS IN VIETNAM ARE NOTORIOUSLY UNRELIABLE BUT BY ANY STANDARD THE DEMOGRAPHIC SHIFT HERE IS HUGE THE COUNTRY'S POPULATION WHICH HAS BEEN GROWING AT AN ANNUAL RATE OF MORE THAN 2 IS ABOUT 72 MILLION TODAY A FEW YEARS AGO IT WAS ESTIMATED THAT ALMOST TWOFIFTHS OF VIETNAM'S POPULATION WAS 15 YEARS OR YOUNGER THE WORK FORCE IS NOW ABOUT 32 MILLION THIS YEAR'S CROP OF 18YEAROLDS IS ONLY THE FIRST WAVE OF TENS OF MILLIONS OF YOUNG PEOPLE BORN SINCE THE END OF THE WAR IN 1975 WHO WILL BE SWELLING THAT WORK FORCE SUCCESS BELONGS TO THOSE WHO CAN BEST RIDE THIS WAVE AND FOR LE VAN KIEM THE NEW GENERATION IS THE LABOR POOL ON WHICH HE HAS BUILT HIS OWN FUTURE A NATIVE OF THE ANCIENT CITY OF HUE MR KIEM FIRST MOVED TO THE CAPITAL AS A BOY IN 1954 AND THEN RETURNED TO THE SOUTHERN PART OF THE COUNTRY AS A MEMBER OF A NORTH VIETNAMESE ARMYTRANSPORTATION UNIT HE STAYED AFTER THE WAR IN A GOVERNMENT POST WHERE HE LEARNED HE SAYS BY STUDYING BIDDING PRACTICES ON GOVERNMENT CONTRACTS TODAY HE IS THE 48YEAROLD PRESIDENT OF HUY HOANG CO A PRIVATE GARMENT AND CONSTRUCTION COMPANY WHOSE SPORTSWEAR EXPORTS WERE 325 MILLION LAST YEAR A BUDDHISTLIKE GARDEN MORE DECORATIVE THAN RELIGIOUS SHIELDS HIS MODERN PLANT OUTSIDE OLD SAIGON THE HANGARLIKE BUILDING OPEN ON THE SIDES AND COOLED BY CEILING FANS HOUSES HUNDREDS OF WORKSTATIONS WITH WOMEN AT SEWING MACHINES ALMOST ALL ARE IN THEIR 20S AND TWO SHIFTS OF 1250 WORKERS CUT SEW AND PACKAGE ORDERS FOR PIECEWORK WAGES AVERAGING THE EQUIVALENT OF ABOUT 50 A MONTH THE COMPANY MAKES ITS OWN LINE OF CLOTHING AND HAS A GLORY LOGO RESEMBLING A RISING SUN BUT MUCH OF ITS BUSINESS IS WITH JAPANESE AND GERMAN BUYERS WHO PROVIDE HIGHQUALITY CLOTH AND PATTERNS FOR SPORTSWEAR SOLD OVERSEAS UNDER THEIR OWN NAMES THIS COMES AT A TIME WHEN WESTERN DESIGNERS ARE INDULGING IN THEIR OWN INDOCHIC IMITATIONS OF TRADITIONAL VIETNAMESE STYLES ADVERTISED BY YOUNG VIETNAMESE WOMEN MODELING CHANEL AND RALPH LAUREN CLOTHES THAT SELL FOR SEVERAL YEARS' WAGES TO THE AVERAGE VIETNAMESE WHILE MR KIEM PROSPERS BY USING THE YOUNG GENERATION AS A WORK FORCE HO TRONG TIET IS DOING NICELY BY CATERING TO ITS TASTES MR TIET IS A 51YEAROLD BUSINESSMAN WHO ALSO WAS BORN IN CENTRAL VIETNAM THOUGH HE SIDED WITH THE SOUTH IN THE WAR AS AN ADMINISTRATOR IN THE DANANG AREA HE NOW IS CAPITALIZING ON THE NEW GENERATION'S LOVE AFFAIR WITH BILLIARDS HIS THANH MINH BRAND TABLES AND CUE STICKS ARE MARKETED UNDER A LOGO FEATURING A BUSTY LONGLEGGED EURASIAN WOMAN GIVEN HIS PAST TIES TO THE OLD SAIGON REGIME MR TIET IS WARY OF CELEBRATING HIS SUCCESS BUT THE BUSINESS WHICH HE RUNS WITH HIS SONS HAS ABOUT 30 SHOPS AND EMPLOYS AN ESTIMATED 700 WORKERS OR NEARLY SEVEN TIMES THE NUMBER JUST FIVE YEARS AGO GERMANY AND BRITAIN ARE TWO EXPORT MARKETS AND AN INDIANA COMPANY IS INTERESTED IF THE US ECONOMIC EMBARGO ON VIETNAM IS LIFTED BUT THE REAL HEART OF MR TIET'S SUCCESS SO FAR LIES IN VIETNAM ITSELF WHERE BILLIARD HALLS NOW ARE A COMMON SIGHT AND WHERE A RIVAL COMPANY HAS UNABASHEDLY BEGUN SELLING TABLES WITH ITS OWN WELLENDOWED MODEL THE OLD PEOPLE ARE CAUTIOUS HE SAYS THE YOUNG PEOPLE WANT TO SEE SOMETHING NEW WHAT YOUNG PEOPLE IN VIETNAM WANT MOST IS A JOB WHICH MANY HOPE WILL COME COURTESY OF FOREIGN INVESTMENT THE WORLD'S OLD COLONIALISTS THE BRITISH AND FRENCH TODAY OFFER LANGUAGE COURSES TO THE VIETNAMESE HOW HIGH IS BIG BEN ASKS ONE ENGLISH TUTORIAL THE NEW GENERATION OF COLONIALISTS THE TAIWANESE TEACH HOW TO MAKE THINGS SUCH AS SHOES TEXTILES AND FUR COATS IN DANANG ALONE SEVEN TAIWANESE ENTERPRISES ARE UNDER WAY THOUGH THE FOREIGNBUSINESS COMMUNITY BELIEVES JAPAN WILL DOMINATE ULTIMATELY TAIPEI'S GOVERNMENT IS ENCOURAGING INVESTMENT IN VIETNAM IN PART TO BALANCE TAIWAN'S HOLDINGS IN NEIGHBORING CHINA GOLD MEDAL FOOTWEAR FOR EXAMPLE EMPLOYS 500 YOUNG WORKERS IN DANANG AND HOPES TO INCREASE THAT NUMBER TO 2500 AS PART OF A 30 MILLION INVESTMENT THAT WILL BENEFIT FROM GOVERNMENT GUARANTEES BY TAIPEI AND MULTIPLE TAX BREAKS FROM VIETNAM WAGES EQUAL TO ABOUT 35 A MONTH ARE COMPETITIVE WITH THE COMPANY'S PLANT IN CHINA WHERE THE VERY SAME SHOES ARE MADE FOR EXPORT TO THE US FOOTWEAR MADE AT THE DANANG PLANT IS NOW TARGETED TO EUROPE BUT THE HOPE IS TO MAKE HIKING AND CASUAL SHOES FOR SALE TO THE STATES IF CURRENT RESTRICTIONS ARE ENDED THE NEW TAN THUAN EXPORTPROCESSING ZONE IN HO CHI MINH CITY IS THE MOST AMBITIOUS UNDERTAKING AND REPRESENTS A JOINT VENTURE BETWEEN VIETNAM AND INVESTORS ALLIED WITH THE OLD RULING KUOMINTANG IN TAIWAN THE BUBBLY VIETNAMESE SPOKESMAN WHO LEARNED HIS ENGLISH WHILE SITTING OUT A BIG CHUNK OF THE WAR AT THE UNIVERSITY OF WISCONSIN FROM 1968 TO 1972 CLAIMS THERE ARE BOOKINGS FOR ABOUT 110 ACRES MOSTLY FROM TAIWANESE COMPANIES THE LARGE TAX BREAKS GIVEN TO INVESTORS ARE ALMOST A REAGANESQUE GETTHEGOVERNMENTOFFPEOPLE'SBACKS APPROACH TO ECONOMIC AND POLITICAL REFORM NO ONE SPEAKS OF SHARING POWER BUT COMMUNIST LEADERS SEEM TO ENCOURAGE CRITICISM OF THE GOVERNMENT AND EXPOSURE OF CORRUPTION THERE ALSO IS A SUBTLE EFFORT TO IDENTIFY WITH YOUNGER WORKERS A PARTY YOUTH NEWSPAPER FOR EXAMPLE COMBINES TRENDY STORIES OF BEAUTY PAGEANTS WITH A CARTOON CARICATURING MIDDLEAGED BUREAUCRATS WHO PROFIT FROM THEIR OFFICES IN FACT GOVERNMENT IS ON THE DEFENSIVE AND UNCERTAIN OF ITS REDEFINED MISSION GOVERNMENT FACTORIES MUST CUT PAYROLLS AS THEY TRY TO COMPETE UNDER MARKET RULES AND LOWPAID BUREAUCRATS WHO HOLD ONTO THEIR POSTS MUST OFTEN FIND A SECOND JOB TO SUPPLEMENT THEIR SALARIES DOCTORS AND TEACHERS SAVE THEIR ENERGY FOR PRIVATE PATIENTS AND PUPILS VIETNAM'S HEALTH MINISTER WONDERS ALOUD IF NEW GOVERNMENT FEES ALREADY EXPENSIVE SHOULD BE RAISED EVEN HIGHER TO GET PEOPLE TO BUY HEALTH INSURANCE THE GOVERNMENT NEEDS TO BROADEN ITS REVENUE BASE IF IT IS TO CARRY OUT PUBLIC INVESTMENTS AND NARROW THE GAP BETWEEN RICH AND POOR PEOPLE ARE VERY ANGRY AT THE DISPARITIES SAYS LE DANG DOANH A SENIOR ECONOMIC PLANNER WE NEED TO MAKE PEOPLE MORE EFFICIENT BUT ON THE OTHER SIDE THE PROBLEM IS TO FIND THE REVENUES TO HELP THE POOR TWO POLITICAL FORCES THAT MAY YET APPEAL TO THE YOUNG ARE THE NATIONAL ASSEMBLY AND THE BUDDHIST MONKS ONCE DISMISSED AS A RUBBER STAMP THE ASSEMBLY HAS BECOME AGGRESSIVE ON SUCH ISSUES AS PROMOTING LAND REFORM AND TAXES AND LIKE US LAWMAKERS ATTUNED TO LOCAL CONCERNS THE MEMBERSHIP RESPONDS LESS TO PARTY STRUCTURE THAN TO PROVINCIAL COUNCILS BACK HOME THE BUDDHIST MOVEMENT POSES ITS OWN CHALLENGE TO CENTRALIZED COMMAND FOUR MONKS IN HUE RECENTLY WERE SENTENCED TO PRISON TERMS OF THREE TO FOUR YEARS ON CHARGES OF INSTIGATING DEMONSTRATIONS LAST MAY AFTER A MONK WAS TAKEN BY POLICE FOR QUESTIONING THE MONKS ARGUE THAT THE PROTESTS WERE A SPONTANEOUS RESPONSE TO CLUMSY POLICE TACTICS THEY SEE THE DISPUTE AS A QUESTION OF THE RIGHTS OF AN INDEPENDENT UNIFIED BUDDHIST CHURCH THE CENTER OF THE FERMENT IS THE HISTORIC LINH MU PAGODA DESPITE THE CRACKDOWN YOUNG MONKS REMAIN OPENLY CRITICAL OF WHAT THEY SEE AS THE GOVERNMENT'S HEAVYHANDED TACTICS FOUR CENTURIES OF HISTORY FOSTER A SENSE OF PLACE AND SELFCONFIDENCE SET UP ON BLOCKS IN A GARAGE IS THE BLUE AUSTIN CAR USED IN 1963 TO DRIVE ONE MONK THICH QUANG DUC TO SAIGON WHERE HE SET HIMSELF AFIRE TO PROTEST THE THENUSBACKED REGIME A BLACKANDWHITE IMAGE OF THE BURNING CLERIC CAPTURED IN A NEWSSERVICE PHOTOGRAPH IS STILL REMEMBERED AROUND THE WORLD THE ENDURING BEAUTY OF THE PAGODAS WHICH NOW DRAW YOUNG PEOPLE IN LARGE NUMBERS CONTRASTS WITH THE FADING MEMORIES AND MONUMENTS OF THE WAR VIETNAM'S CLIMATE ISN'T KIND TO CONCRETE AND ITS PEOPLE ARE TOO POOR TO PRESERVE PARKLIKE SETTINGS SUCH AS THOSE OF THE CIVIL WAR BATTLEFIELDS ACROSS THE AMERICAN SOUTH THE BRIARCOVERED BURIAL GROUNDS FOR THOSE WHO FOUGHT FOR THE LOSING SAIGON REGIME ARE THE MOST HAUNTING COWS GRAZE AMONG THE DEAD OF BOTH SIDES IN RURAL AREAS ACROSS WHAT ONCE WAS SOUTH VIETNAM VIETNAM'S CHANGE OF GENERATIONS IS PERHAPS BETTER UNDERSTOOD BY LOOKING AT NGUYEN KIM TRAN'S SMALL WALKUP APARTMENT HERE THE 49YEAROLD MATH TEACHER'S FATHER WHO ALSO WAS A TEACHER FOUGHT WITH THE VIET MINH AGAINST THE FRENCH NEVERTHELESS FOLLOWING THAT WAR THE FAMILY HOME WAS CONFISCATED BY THE COMMUNIST REGIME AND SUBDIVIDED INTO FLATS ONE OF WHICH IS RENTED BY MR TRAN IN THE WAR AGAINST THE US MR TRAN SERVED AS PART OF AN ANTIAIRCRAFTGUN CREW THAT HELPED SHOOT DOWN AN AMERICAN PLANE TODAY HE HOLDS ONTO HIS TEACHING JOB WHILE HELPING HIS ELDEST SON RUN WHAT THEY JOKINGLY CALL THEIR SMALL FACTORY IN ONE ROOM OF THE APARTMENT THERE OLD JAPANESE HAND LOOMS WEAVE HUNDREDS OF CLOTH PIECES VALUED AT FIVE CENTS EACH THAT WILL BE SEWN BY OTHERS INTO SWEATERS AND SHIRTS FOR EXPORT TO EASTERN EUROPE THE PRIDE IN AND DEPENDENCE ON HIS SON IS EVIDENT AND MR TRAN WELCOMES THE MARKET REFORMS FOR HIS CHILDREN'S SAKE BUT AS HE APPROACHES 50 THERE ALSO IS A SENSE THAT HIS OWN LIFE HAS PASSED HIM BY AND THAT HE WILL EXPEND ALL HIS ENERGY FOR THE GENERATION AHEAD NOW IS THE FREE ECONOMICS HE SAYS IF YOU HAVE IT YOU CAN BUY IF NOT YOU CAN'T 9401070166 940107 PROTECTIONIST PLUM RIPENS IN CALIFORNIA BY MARSHALL FRITZ AS A FORMER SCHOOL PRINCIPAL I KNOW HOW IMPORTANT IT IS TO TEACH CHILDREN INDIVIDUAL RESPONSIBILITY AND SELFRELIANCE THAT'S WHY I WAS SO DISAPPOINTED LAST MONTH TO MEET SOME GROWNUP FARMERS WHO COULDN'T WAIT TO BE CODDLED BY GOVERNMENT ON DEC 16 I ATTENDED A HEARING OF THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE IN FRESNO THE TOPIC WAS THE CREATION OF A STATE PLUM MARKETING ORDER AND THE TESTIMONY WAS REVEALING MARKETING ORDERS COVERING MANY FRUITS AND VEGETABLES WERE SET UP IN THE 1930S TO TEMPORARILY PROP UP THE INCOME OF DEPRESSIONERA GROWERS SOME ARE STILL THERE THE MARKETING ORDERS APPROVED IN SOME CASES BY THE FEDERAL GOVERNMENT AND IN OTHER CASES BY THE STATES LIMIT THE SALE OF CROPS AND KEEP PRICES ARTIFICIALLY HIGH BY AMONG OTHER METHODS MANDATING THE MINIMUM SIZE AND BEAUTY STANDARDS OF THE PRODUCE ALLOWED TO BE SOLD UNTIL LAST YEAR FOR EXAMPLE NEARLY 40 OF CALIFORNIA'S ORANGE CROP WAS NOT PERMITTED TO REACH GROCER'S SHELVES NOW THE PLUMLORDS WANT THEIR TURN RATHER THAN LIVE BY THE CHALLENGES OF THE FREE MARKET THE GROWERS WANT TO SET UP A GROUP OF 13 INSIDERS TO MAKE SIZE AND BEAUTY DECISIONS FOR PLUM BUYERS IF GOV PETE WILSON APPROVES THIS IDEA WHICH NOW SITS ON THE DESK OF CALIFORNIA'S SECRETARY OF THE DEPARTMENT OF FOOD AND AGRICULTURE HENRY VOSS IT WILL BECOME ILLEGAL TO SELL UNDERSIZE OR UGLY CALIFORNIA PLUMS SINCE MOST PLUMS ARE GROWN IN THE STATE LOWINCOME AND FRUGAL AMERICANS WON'T BE ABLE TO BUY BABY PLUMS AT 59 CENTS PER POUND INSTEAD OF JUMBOS AT 99 CENTS THE SMALL FRUIT WILL BE LEFT TO ROT DEBRA SAUNDERS OF THE SAN FRANCISCO CHRONICLE CALLS THIS ATTITUDE WHAT THE POOR CAN'T BUY THE FLIES GET FREE PLUM GROWERS DON'T WANT KIDS TO THINK THAT QUALITY IS ONLY SKIN DEEP BUT THAT'S WHAT THEY TEACH BY EXAMPLE PATRICK SANGUINETTI A PACKER TESTIFIED THAT HE WANTS A MARKETING ORDER SO GROWERS CAN'T SELL COSMETICALLY CHALLENGED FRUIT EG A PLUM WITH A TWIG SCAR OR SPOT OF SUNBURN GROWERS TELL ME THAT IF THE PLUM MARKETING ORDER INCLUDES COSMETIC CONTROLS ABOUT 10 OF THE CROP THE AMOUNT IN 42000 HALFTON PICKUP TRUCKS WILL BE DESTROYED EVERY YEAR FOR LACK OF LOVELINESS PLUM GROWERS DON'T WANT KIDS TO BECOME MARXISTS BUT THEY TEACH AN ANTIMARKET MENTALITY CLIFFORD SADOIAN SWORE THE MARKETING ORDER WAS NEEDED TO RESTORE STABILITY TO THE MARKETPLACE AND CLIFFORD ANDERSON OFFERED THIS NON SEQUITUR AS ENTREPRENEURS WE HAVE THE RIGHT TO A DECENT RETURN MR ANDERSON ALSO ASKED FOR GOVERNMENT STANDARDS SO THE FRUIT SHIPPED WOULD ALL BE NUTRITIONALLY CORRECT BUT OFFERED NO DATA ON THE NUTRITIONAL INFERIORITY OF HOMELY PLUMS PLUM GROWERS KNOW THESE REJECTS ARE THE VERY SAME FRUIT THAT THEY FEED TO THEIR FAMILIES AND BRING TO CHURCH POTLUCK SUPPERS FOOD SELLER ZANE OWENS SPOKE AGAINST THE MARKETING ORDER BECAUSE HE WANTS TO MARKET HIS OWN BRAND OF GOOD ENOUGH PLUMS THAT WILL BE JUST AS TASTY AND NUTRITIOUS AS CALIFORNIA'S BRANDNAME PLUMS PLUM GROWERS DON'T WANT CHILDREN TO BE SELFINDULGENT BUT GROWERPACKER LEROY GIANNINI CLAIMED THAT IT'S DIFFICULT TO HAVE THE SELFDISCIPLINE TO WAIT UNTIL FRUIT IS MATURE HE WANTS THE GOVERNMENT TO FORCE HIM TO BE GOOD BY OUTLAWING IMMATURE UNDERSIZED FRUIT RATHER THAN SETTING UP AN INDEPENDENT STANDARDS ORGANIZATION SUCH AS UNDERWRITERS LABORATORIES I FEEL SAFE AROUND ELECTRIC CORDS GROWER MELVIN ENNS LED THE BEGGING FOR GOVERNMENT INSPECTORS IN EVERY PACKING HOUSE THEY DESERVE ECONOMIST WALTER WILLIAMS'S QUIP THAT THEY WANT AFDAAID TO FARMERS WITH DEPENDENT ATTITUDE IN ALL THEIR SPEECHES NONE OF THESE FARMERS ASKED FOR MARKETING ORDERS FOR THEIR SUPPLIERS NONE WANT PLUM GROWERS TO BE PROTECTED FROM LOWCOST BLEMISHED TIRES FOR THEIR TRUCKS OR DISCOUNTED UNDERSIZED COMPUTERS FOR THEIR BOOKKEEPING CHORES FREEDOM IS GOOD THEY SEEM TO SAY UNLESS WE CAN RAISE OUR INCOME BY EXCLUDING PLUMS FROM THE FREE MARKET OF ALL THE TESTIMONY FAVORING THE MARKETING ORDER LET ME PRAISE GROWER MARK LEWIS FOR SPILLING THE BEANS THE BOTTOM LINE AS PLUM GROWERS WE WANT MORE MONEY GOV WILSON SHOULD TELL SECRETARY VOSS THAT RAISING CONSUMER PRICES THROUGH MARKETING ORDERS IS JUST PLUMB WRONG MR FRITZ IS PRESIDENT OF PIONEER CHRISTIAN ACADEMY IN FRESNO CALIF HE OWNS ONE BACKYARD PLUM TREE AND SUPPLEMENTS HIS CROP WITH STOREBOUGHT FRUIT